Timken Company (the) · NYSE:TKR
Timken Company (the) — Q1 2023 Earnings Presentation
37 slides from Timken Company (the)'s earnings presentation, May 3, 2023
Slide 1: 1Q 2023 Earnings Investor Presentation
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Earnings Investor Presentation May 3, 2023 The Timken Company
Slide 2: Agenda
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Agenda 2 Neil Frohnapple Introduction Director, Investor Relations Overview and Rich Kyle Business Update President a
Slide 3: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information 3 Certain statements in this presentation (
Slide 4: Overview and Business Update
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Overview and Business Update Rich Kyle President and Chief Executive Officer The Timken Company
Slide 5: 1Q 2023 Performance Highlights
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Performance Highlights 5 Sales of $1.26 billion in 1Q-23, up 12.3% from prior-year period ▪ Revenue up 10.9%
Slide 6: YOY Quarterly Sales Growth Trend
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason YOY Quarterly Sales Growth Trend 6 (Ex-currency and acquisitions/divestures) 8th consecutive quarter of double-digit
Slide 7: High-Performing Segments with Diverse Market/Sector Mix
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason High-Performing Segments with Diverse Market/Sector Mix 7 Engineered Bearings Industrial Motion Construction Construc
Slide 8: Organic Growth Outlook – FY 2023 By Market/Sector
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Organic Growth Outlook – FY 2023 By Market/Sector 8 (Market/Sector Placement Reflects Mid-Point of Guidance) NEGATIVE
Slide 9: 2023 Outlook
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2023 Outlook 9 Prior Outlook Current Outlook (Feb. 6, 2023) (May 3, 2023) Current Outlook: Full Year 2023 vs. 2022 Sa
Slide 10: Looking Ahead
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Looking Ahead 10 Raising 2023 outlook ▪ Increased revenue and earnings guidance ▪ Current outlook would represent the
Slide 11: Consistent, Growing and Strong Performance
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Consistent, Growing and Strong Performance 11 Revenue ($B) Adj. EBITDA Margin Adj. EPS $4.9 19.5% $7.25 19.2% 19.0% $
Slide 12: Financial Performance
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Financial Performance Phil Fracassa Executive Vice President and Chief Financial Officer The Timken Company
Slide 13: 1Q 2023 Financial Overview
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Financial Overview 13 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share $266 REPORTED (GAAP) ADJUSTED $1
Slide 14: 1Q 2023 Financial Highlights - Sales
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Financial Highlights - Sales 14 1Q-23 vs. 1Q-22 Sales by Geography – ORGANIC $45 ($30) $1,263 (Excludes Acqui
Slide 15: 1Q 2023 Financial Comparison – Adjusted EBITDA
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Financial Comparison – Adjusted EBITDA 15 $14 ($52) $86 ($31) ($12) $32 $4 $266 $225 20.0% 21.0% 1Q-22 Volume
Slide 16: 1Q 2023 Financial Comparison – Net Income & Diluted EPS
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Financial Comparison – Net Income & Diluted EPS 16 1Q-22 1Q-23 $M EPS $M EPS Net Income / EPS $118.2 $1.56 $1
Slide 17: 1Q 2023 Segment Performance - Engineered Bearings
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Segment Performance 17 Engineered Bearings Net Sales ($M) Adjusted EBITDA ($M) Sales of $901 million, up 16.6
Slide 18: 1Q 2023 Segment Performance - Industrial Motion
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 1Q 2023 Segment Performance 18 Industrial Motion Net Sales ($M) Adjusted EBITDA ($M) Sales of $362 million, up 2.8% f
Slide 19: Cash Flow, Leverage & Capital Allocation
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Cash Flow, Leverage & Capital Allocation 19 Capital Structure ($M) ($M) 1Q-22 1Q-23 12/31/22 03/31/23 Net Cash from O
Slide 20: 2023 Outlook
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2023 Outlook 20 Prior Outlook Current Outlook (Feb. 6, 2023) (May 3, 2023) Current Outlook: Full Year 2023 vs. 2022 S
Slide 21: New Operating Segments
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason New Operating Segments 21 Timken now operates under two new business segments: Engineered Bearings and Industrial Mot
Slide 22: Long-Term Targets (5-Year)
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Long-Term Financial Goals* 22 Strong Top-Line Growth Organic Growth CAGR: 4-5% ▪ Positive macros (incl. new markets);
Slide 23: Appendix: GAAP Reconciliations
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Appendix: GAAP Reconciliations The Timken Company
Slide 24: GAAP Reconciliation: Net Income & EPS
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 24 GAAP Reconciliation: Net Income & EPS Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Earni
Slide 25: GAAP Reconciliation: 2019-2022 Net Income & EPS
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: 2019-2022 Net Income & EPS 25 Reconciliations of Adjusted Net Income to GAAP Net Income and Adju
Slide 26: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net 26 Income Reconciliation of EBITDA to GAAP Net
Slide 27: GAAP Reconciliation: 2019-2022 EBITDA, and EBITDA, After Adjustments to Net Income
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: 2019-2022 EBITDA, and EBITDA, After Adjustments 27 to Net Income Reconciliations of GAAP to Non-
Slide 28: GAAP Reconciliation: Segment EBITDA & EBITDA Margin
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 28 GAAP Reconciliation: Segment EBITDA & EBITDA Margin Reconciliation of segment EBITDA, after adjustments, to segmen
Slide 29: GAAP Reconciliation: 2018-2022 Segment EBITDA & EBITDA Margin
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 29 GAAP Reconciliation: 2018-2022 Segment EBITDA & EBITDA Margin Reconciliation of segment EBITDA, after adjustments,
Slide 30: GAAP Reconciliation: Net Debt & Free Cash Flow
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 30 GAAP Reconciliation: Net Debt & Free Cash Flow Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt to
Slide 31: GAAP Reconciliation: Consolidated EBITDA
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 31 GAAP Reconciliation: Consolidated EBITDA Reconciliation of EBITDA and EBITDA, After Adjustments, to GAAP Net Incom
Slide 32: GAAP Reconciliation: Adjusted NOPAT, Invested Capital and Return
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Adjusted Net Operating Profit After Taxes, 32 Adjusted Invested Capital and Return on Adjusted I
Slide 33: GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook 33 Reconciliation of Adjusted Earnings per Share to GAAP
Slide 34: GAAP Reconciliation: Adjusted EBITDA to GAAP Net Income Outlook
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 34 GAAP Reconciliation: Adjusted EBITDA to GAAP Net Income Outlook Reconciliation of Adjusted EBITDA to GAAP Net Inco
Slide 35: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 35 GAAP Reconciliation: Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaudited) The follo
Slide 36: GAAP Reconciliation: 2022 Quarterly Net Sales to Organic Sales
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 36 GAAP Reconciliation: 2022 Quarterly Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaud
Slide 37: GAAP Reconciliation: 2021 Quarterly Net Sales to Organic Sales
These materials were presented on May 3, 2023 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 37 GAAP Reconciliation: 2021 Quarterly Net Sales to Organic Sales Reconciliation of Net Sales to Organic Sales (Unaud