Titan International, Inc. (de) · NYSE:TWI
Titan International, Inc. (de) — Q1 2017 Earnings Presentation
34 slides from Titan International, Inc. (de)'s earnings presentation, Oct 17, 2017
Slide 1: Investor Presentation Q1 2017
Investor Presentation Q1 2017
Slide 2: Titan International Overview
Titan International Overview Titan International Inc. (TWI) is a publicly traded company on the New York Stock Exchange. Headquartered in the heartland of the U.S. in Quincy, Illinois, Titan has grown to become a top global manufacturer of specialty tires, wheels and tracks. Titan has a heritage
Slide 3: Titan International Overview: Strategy
Titan International Overview: Strategy To become the worldwide leader in manufacturing and distribution of wheels, tires, assemblies and undercarriage products and to serve our customers’ needs through product innovation and quality service in our key markets: Agriculture Earthmoving/Constructio
Slide 4: Titan International Overview: Portfolio
Titan International Overview: Portfolio COMPETITIVE ADVANTAGES TITAN/GOODYEAR MICHELIN BRIDGESTONE GKN
Slide 5: Titan International Overview: Customers
Titan International Overview: Customers
Slide 6: Titan International Overview: Global Footprint
Titan International Overview: Global Footprint
Slide 7: Agriculture
Slide 8: AGRICULTURE: Market Summary
AGRICULTURE: Market Summary Large hp equipment (4WD tractors and Combines) remain at historical lows. Smaller hp tractor demand remains strong, but at lower ASP and gross margins than larger equipment Grain prices remain low; resulting in lower farm income (stabilized somewhat during 2016) Use
Slide 9: AGRICULTURE: Product Innovations
AGRICULTURE: Product Innovations
Slide 10: AGRICULTURE: Product Innovations
AGRICULTURE: Product Innovations
Slide 11: AGRICULTURE: Goodyear Expansion
AGRICULTURE: Goodyear Expansion
Slide 12: AGRICULTURE: Growth Opportunities
AGRICULTURE: Growth Opportunities
Slide 13: The Gayo N
The Gayo N S MINING
Slide 14: OTR: Market Summary
OTR: Market Summary Private construction spending for resi and non-resi buildings continue to carry the industry Larger construction equipment used for highways and infrastructure have remained slow to recover Overall mining activity remains lower with low commodity prices Strong U.S. dollar
Slide 15: OTR: Recent Highlight
OTR: Recent Highlight GRAND OPENING: TITAN TIRE RECLAMATION CORP (TTRC) March 29, 2016, was a groundbreaking day in more ways than one. The ribbon cutting at TTRC set in Sh motion the world's first completely sustainable ye Or71TANn recycling solution for giant OTR tires — effectively TIRE RECLAMATI
Slide 16: OTR: 23,000-Hour Giant Stands Out At Minexpo
OTR: 23,000-Hour Giant Stands Out At Minexpo
Slide 17: OTR: Product Innovations
OTR: Product Innovations TRIED AND TRUE: THE LEADERS IN BIAS Without a doubt, Titan produces some of the industry's best-performing, proven-in-the-field bias tires for construction and earthmoving. While we already have strong market share in bias, we have a vision for continuing to grow it. FOCUS O
Slide 18: OTR: Product Innovations
OTR: Product Innovations THE PREMIUM FORESTRY BRAND. Titan's dedication to improving product quality / “In my opinion, | think has paid off in the growing forestry segment. Goodyear is the best While several key competitors have experienced forestry tire on the market.” quality problems, Goodyear ha
Slide 19: OTR: ITM Innovations
OTR: ITM Innovations 1TM 2016 HIGHLIGHTS UNDERCARRIAGES | TRACKS | COMPONENTS Titan designed and produced a massive 120-ton custom undercarriage for a mining customerin > Morocco. INTRODUCING TRACKADVICE: INTELLIGENT TRACK MAINTENANCE * Ultrasonic measurement tool instantaneously calculates wear per
Slide 20: Consumer
Slide 21: CONSUMER: Products Innovations
CONSUMER: Products Innovations
Slide 22: CONSUMER: Specialty Products Division
CONSUMER: Specialty Products Division
Slide 23: Financial Overview
Financial Overview O7ITAN oo
Slide 24: Financial Overview: Q1 2017 by Market
Financial Overview: Q1 2017 by Market Agriculture: Tractors, combines, implements, irrigation Earthmoving/Construction: Mining, cranes, aerial lifts, haul trucks, scrapers Consumer: Primarily light-truck tires, ATVs and select golf and turf equipment markets Q1 2017 Segment Revenue GP: 13.0% ⬆18% vs
Slide 25: Financial Overview: Sales and Gross Margin
Financial Overview: Sales and Gross Margin 50 % $3 50 45 % 40 % $289 $3 00 Net Sales: Up 18% Q1 ‘17 vs. Q1 ‘16 Gross margin improved 147 basis points compared to Q1 ’16 35 % $2 50 30 % $194 $181 AG Large Ag equipment sales continue to improve 25 % $2 00 20 % $153 50% $1 50 Volume up 12%; Pri
Slide 26: Financial Overview: Highlights & Challenges
Financial Overview: Highlights & Challenges Q1 Highlights Net sales of $357.5 million, up 11% YOY after eighteen quarters of YOY declines Improved overall gross profit for the quarter by $11.4 million (230 bps) YOY Triple-digit increases in agriculture segment net sales were realized in Latin
Slide 27: Financial Overview: Summary Income & EPS
Financial Overview: Summary Income & EPS (Amounts in millions) Q1 2017 Q1 2016 Sales $357.5 $321.8 Gross Margin $39.7 $28.3 Gross Margin % 11.1% 8.8% Operating Income (Loss) ($7.1) ($11.5) Operating Income % (2.0%) (3.6%) Adjusted Net Income (Loss) ($11.5) ($12.7) Adjusted Earnings Per Share-Diluted
Slide 28: Financial Overview: EBITDA Reconciliation
Financial Overview: EBITDA Reconciliation Q1 2017 USD Amounts in Millions Q1 2017 Q1 2016 Net income (loss) (10.6) (12.3) Adjustments Provision for income taxes 3.4 1.0 Interest expense 7.7 8.5 Depreciation & amortization 14.5 15.2 EBITDA 15.0 12.4
Slide 29: Financial Appendix
Financial Appendix O7ITAN
Slide 30: Sales – N. America vs. International
Appendix Sales – N. America vs. International -12 Quarters -8 Quarters -4 Quarters Current Quarter Q1 - Sales / Operating Income (Amounts in Millions) $600 8% $500 6% 269 4% $400 Millions 202 2% 0.1% 207 $300 172 0% 270 0.5% -2.0% $200 -3.6% -2% 200 $100 149 150 -4% $0 -6% 2014 2015 2016 2017 Sales
Slide 31: Working Capital
Appendix Working Capital Q1 - WORKING CAPITAL (Amounts in Millions) $800 28% 26.9% $700 27% $600 26% 395 25.1% $500 25% Millions $400 318 292 23.6% 268 24% $300 23.7% 23% $200 328 $100 213 239 216 232 22% 153 186 138 $0 21% 2014 2015 2016 2017 AR Inventory AP Working Capital as % of Sales 2016 2017
Slide 32: YTD Cash & CDs Activity
Appendix YTD Cash & CDs Activity March 2017 300.0 2.4 0.7 0.6 1.3 8.4 14.5 10.2 250.0 14.6 10.6 14.5 42.2 200.0 48.2 150.0 100.0 $197.8 $181.2 50.0 -
Slide 33: Debt Structure
Appendix Debt Structure CASH / DEBT Q1 '17 Q4 '16 Q3 '16 Q2 '16 Q1 '16 Cash & CDs $181 $198 $216 $207 $191 Total Debt $456 $506 $501 $504 $504 Titan International $396 $456 $456 $455 $456 Titan Europe Credit Facilities $36 $34 $37 $39 $40 Other $24 $16 $8 $10 $8 Net Leverage (Net Debt / Trailing 12
Slide 34: Cost Structure
Appendix Cost Structure Cost Structure Breakdown Primary Raw Materials Steel Overhead Natural Rubber 25% Raw Materials Synthetic Rubber 55% Labor Carbon Black 20% Nylon