Titan International, Inc. (de) · NYSE:TWI
Titan International, Inc. (de) — Q3 2012 Earnings Presentation
20 slides from Titan International, Inc. (de)'s earnings presentation, November 2012
Slide 1: Investor Presentation 3rd Quarter 2012
Investor Presentation 3rd Quarter 2012 TITAN MOVES THE WORLD™
Slide 2: Market Segments
Market Segments Q3 2012 YTD 2012 14% 13% 25% 24% 61% 63% Total Revenue Total Revenue 2% 6% 20% 21% 18% 19% Gross Margin Gross Margin Agriculture Earthmover/Construction Consumer 2
Slide 3: North & South America Locations
North & South America Locations 3
Slide 4: Agriculture Drivers
Agriculture Drivers Net Sales (in millions) & Gross Profit Commodity prices drive farm income 25% $1,200 18% 22% $961 $1,000 Commodity cycle has been driven by demand vs. supply 20% 12% 16% $831 $730 $675 $800 Ethanol is using record amounts of corn (>1/3) 9% 15% $564 $600 Global population
Slide 5: Earthmoving/Construction Drivers
Earthmoving/Construction Drivers Net Sales (in millions) & Gross Profit 20% 25% $350 13% $318 16% $307 Commodity prices remain elevated 20% $281 $300 $250 Housing starts/commercial construction 15% -2% $191 $200 Aging rental fleet to be replaced 10% 3% $144 $150 2012 construction forecast: U.S.
Slide 6: Titan Mining Services
Titan Mining Services •Began in July 2011 •‘One stop shop’- Sell and service wheels, tires and undercarriage COMPANY for the mining market •Tires from 49” to 63” diameter •6,000 tire unit capacity PRODUCT •10,000 tire unit capacity Q2 2013 •SWT- Alberta, Canada •Planet Group- Perth, Australia •Titan
Slide 7: Why Titan?...
Why Titan?... 7
Slide 8: Market Leader
Market Leader North American Ag tires and wheels Others <5% ea 27% >40% Titan/ Goodyear 40% >75% Source: Modern Tire Dealer (tires), January 2012 8
Slide 9: % of Total Sales
® % of Total Sales 2010 2011 ® ® ® ® 50 ® 40 ® 30 ® 20 10 ® ® 0 ® Other Top 10 All Others John Deere®, Caterpillar®, Case IH®, Case Construction®, New 9 Holland®, AGCO®, Kubota®, American Tire Distributors®, Valmont®, Graham, Terex® and Volvo® are registered trademarks of their respective entities.
Slide 10: Distribution Channels by Segment
Distribution Channels by Segment OEM Aftermarket Servicing Mine Wheels 85% 15% n/a Tires 60% 40% n/a Mining n/a n/a 100% 10
Slide 11: Cost Structure
Cost Structure Primary Raw Materials: Steel Natural Rubber Synthetic Rubber Carbon Black Nylon 11
Slide 12: Titan Europe locations
Titan Europe locations 2011 Sales Ag 51% Construction 34% (In millions) 12/31/11 6/30/12 Mining 13% 37% Other 2% Wheels Sales $788.0 $404.1 Ag 7% 63% Construction 57% EBITDA $75.3 $40.8 Undercarriage Mining 32% Other 4% Note: In USD based on 1.60 exchange rate. 12
Slide 13: Q3 Summary
Q3 Summary • Cash levels maintained • Equipment install delay-Bryan • Closed on Planet Group 8/12-Australia-TMS • LX Shop Floor system disruption • Closed on Titan Europe 10/12 • Semi-annual July maintain shutdown • Farm income & receipts to be up over 2011 • FX impact from weaker Reais 13
Slide 14: 3-Year Summary Net Sales & Gross Margin%
(Amounts in millions) YTD Sept YTD Sept YTD Sept Full Year Full Year 30, 2012 30, 2011 30, 2010 2011 2010 Sales $1,327.0 $1,084.1 $648.9 $1,487.0 $881.6 Gross Margin $242.6 $173.6 $87.9 $232.1 $104.1 3-Year Summary Gross Margin% 18.3% 16.0% 13.5% 15.6% 11.8% Operating Profit $175.8 $112.7 $40.1 $132
Slide 15: 4-Year Q3 Summary
(Amounts in millions) Q3 Q3 Q3 Q3 2012 2011 2010 2009 Sales $404.7 $398.8 $222.8 $141.5 Gross Margin $67.2 $53.0 $27.9 ($3.0) 4-Year Q3 Gross Margin% 16.6% 13.3% 12.5% (2.1%) Summary Operating Profit $36.2 $41.4 $12.5 ($15.8) Operating Profit % 8.9% 10.4% 5.6% (11.1%) Net Income * $24.7* $14.5* $4.0
Slide 16: Debt Structure
Debt Structure Amounts in millions 31-Dec 30-Jun 30-Sep Proforma 2011 2012 2012 Oct 5, 2012* Cash $129 $149 $149 $202$563 Debt $330 $320 $320 $563 Net Leverage (Net Debt / EBITDA) Current = .8x * Post acquisitoin of Titan Europe. DEBT $200.0 $112.9 $8.5 $0 5.625% Convertible Notes - Due Jan 7.875% S
Slide 17: 2013 Dealer Outlook
2013 Dealer Outlook Revenue Projections 17
Slide 18: 2012 Guidance
2012 Guidance (issued December 2011) What we said we How we are would do in doing at 9/30.. 2012 SALES $1.7 B - $1.9 B $1.3 B EBITDA $225-$300 M $212 M CAP EX $55 M $36 M 18
Slide 19: Concerning Forward-Looking Statements
Concerning Forward-Looking Statements The accompanying material includes forward-looking comments and information concerning the company’s expectations and objectives for the future. Readers of this material should understand that these forward looking statements are based on the Company’s expectati
Slide 20: www.titan-intl.com
Company Website: www.titan-intl.com Investor Relations Krista Gray 217.221.4773 krista.gray@titan-intl.com 20