Timken Company (the) · NYSE:TKR
Timken Company (the) — Q2 2024 Earnings Presentation
32 slides from Timken Company (the)'s earnings presentation, Jul 31, 2024
Slide 1: 2Q 2024 Earnings Investor Presentation
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Earnings Investor Presentation July 31, 2024 The Timken Company
Slide 2: Agenda
These materials were presented on Jul. 31, 2024 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 Vice President of Investor Relations Overview and Rich Kyle Business Update P
Slide 3: Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information
These materials were presented on Jul. 31, 2024 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 Jul. 31, 2024 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: 2Q 2024 Performance Highlights
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Performance Highlights 5 Sales of $1.18 billion in 2Q-24, down 7.1% from last year’s record level ▪ Revenue
Slide 6: Organic Growth Outlook – FY 2024 By Market/Sector
These materials were presented on Jul. 31, 2024 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 2024 By Market/Sector 6 (Market/Sector Placement Reflects Mid-Point of Guidance) NEGATI
Slide 7: 2024 Outlook
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2024 Outlook 7 Prior Outlook Current Outlook (Apr. 30, 2024) (Jul. 31, 2024) Current Outlook: Full Year 2024 vs. 20
Slide 8: Update on Business and Strategic Initiatives
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Update on Business and Strategic Initiatives 8 Sell-down of Timken India Ltd. (TIL): Operational excellence: ▪ TIL
Slide 9: Looking Ahead
These materials were presented on Jul. 31, 2024 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 9 Updating 2024 outlook ▪ Reducing top-end of prior outlook – reflects updated FX and M&A expectation
Slide 10: Financial Performance
These materials were presented on Jul. 31, 2024 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 11: 2Q 2024 Financial Overview
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Financial Overview 11 Net Sales ($M) Adjusted EBITDA ($M) Earnings Per Share REPORTED (GAAP) ADJUSTED $1,27
Slide 12: 2Q 2024 Financial Highlights - Sales
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Financial Highlights - Sales 12 2Q-24 vs. 2Q-23 Sales by Geography – ORGANIC (Excludes Acquisitions (net) a
Slide 13: 2Q 2024 Financial Comparison – Adjusted EBITDA
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Financial Comparison – Adjusted EBITDA 13 $263 ($56) $5 ($8) $8 $230 $11 $2 $5 20.7% 19.5% 2Q-23 Volume* Pr
Slide 14: 2Q 2024 Financial Comparison – Net Income & Diluted EPS
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Financial Comparison – Net Income & Diluted EPS 14 2Q-23 2Q-24 $M EPS $M EPS Net Income / EPS $125.2 $1.73
Slide 15: 2Q 2024 Segment Performance – Engineered Bearings
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Segment Performance 15 Engineered Bearings Net Sales ($M) $857 Q2 Organic Sales by Market/Sector $783 Sales
Slide 16: 2Q 2024 Segment Performance – Industrial Motion
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2Q 2024 Segment Performance 16 Industrial Motion Net Sales ($M) $415 $399 Q2 Organic Sales by Platform Sales of $39
Slide 17: Cash Flow, Leverage & Capital Allocation
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Cash Flow, Leverage & Capital Allocation 17 Capital Structure ($M) ($M) 2Q-23 2Q-24 YTD-23 YTD-24 12/31/23 06/30/24
Slide 18: 2024 Outlook
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason 2024 Outlook 18 Prior Outlook Current Outlook (Apr. 30, 2024) (Jul. 31, 2024) Current Outlook: Full Year 2024 vs. 2
Slide 19: Appendix: Backup Slides and GAAP Reconciliations
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Appendix: Backup Slides and GAAP Reconciliations The Timken Company
Slide 20: Consistent, Growing and Strong Performance
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Consistent, Growing and Strong Performance Revenue ($B) Adj. EBITDA Margin Adj. EPS $4.8 19.7% 19.2% 19.0% $7.05 $4
Slide 21: GAAP Reconciliation: Net Income & EPS
These materials were presented on Jul. 31, 2024 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: Net Income & EPS 21 Reconciliations of Adjusted Net Income to GAAP Net Income and Adjusted Ear
Slide 22: GAAP Reconciliation: 2019-2023 Net Income & EPS
These materials were presented on Jul. 31, 2024 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: 2019-2023 Net Income & EPS 22 Reconciliations of Adjusted Net Income to GAAP Net Income and Ad
Slide 23: GAAP Reconciliation: EBITDA and EBITDA, After Adjustments to GAAP Net Income
These materials were presented on Jul. 31, 2024 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 23 Income Reconciliation of EBITDA to GAAP Ne
Slide 24: GAAP Reconciliation: 2019-2023 EBITDA, and EBITDA, After Adjustments to Net Income
These materials were presented on Jul. 31, 2024 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: 2019-2023 EBITDA, and EBITDA, After Adjustments 24 to Net Income Reconciliations of GAAP to No
Slide 25: GAAP Reconciliation: Segment EBITDA & EBITDA Margin
These materials were presented on Jul. 31, 2024 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: Segment EBITDA & EBITDA Margin 25 Reconciliation of segment EBITDA, after adjustments, to segm
Slide 26: GAAP Reconciliation: Net Debt & Free Cash Flow
These materials were presented on Jul. 31, 2024 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: Net Debt & Free Cash Flow 26 Reconciliation of Total Debt to Net Debt, the Ratio of Net Debt t
Slide 27: GAAP Reconciliation: Consolidated EBITDA
These materials were presented on Jul. 31, 2024 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: Consolidated EBITDA 27 Reconciliation of EBITDA and EBITDA, After Adjustments, to GAAP Net Inc
Slide 28: Supplemental Information: EBITDA Adjustments and Depreciation & Amortization by Segment
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Supplemental Information: EBITDA Adjustments and Depreciation & 28 Amortization by Segment (Unaudited) (Dollars in
Slide 29: Supplemental Information: EBITDA Adjustments and Depreciation & Amortization by Segment
These materials were presented on Jul. 31, 2024 and have not been confirmed or updated. The Company disclaims any obligation to do so based on subsequent events or for any other reason Supplemental Information: EBITDA Adjustments and Depreciation & 29 Amortization by Segment (Unaudited) (Dollars in
Slide 30: GAAP Reconciliation: Adjusted EPS and Free Cash Flow Outlook
These materials were presented on Jul. 31, 2024 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 30 Reconciliation of Adjusted Earnings per Share to GA
Slide 31: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Jul. 31, 2024 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: Net Sales to Organic Sales 31 Reconciliation of Net Sales to Organic Sales (Unaudited) The fol
Slide 32: GAAP Reconciliation: Net Sales to Organic Sales
These materials were presented on Jul. 31, 2024 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: Net Sales to Organic Sales 32 Reconciliation of Net Sales to Organic Sales (Unaudited) The fol