Slide 1: Fourth Quarter FY2023 Earnings Conference Call
Fourth Quarter FY2023 Earnings Conference Call March 16, 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “believe,” “expect,” “antic
Slide 3: Financial Overview
Financial Overview ▪ Fourth Quarter FY 2023 Results • Revenue $583.0 Million (1) • Adjusted Pre-Tax Income $24.1 Million • Adjusted Diluted EPS $0.81(1) ▪ Full Year FY 2023 Results • Revenue $2.21 Billion • Record Adjusted Pre-Tax Income $136.0 Million(1) • Record Adjusted Diluted EPS $4.52(1) (1) S
Slide 4: Agriculture Segment Overview
Agriculture Segment Overview FY23 Recap ▪ Strong same store sales growth across footprint ▪ Acquired 22 store locations in the last 14 months ▪ Achieved pre-tax margins of 6.4%, an increase of 80 bps YOY ▪ Integration of the Heartland Ag acquisition progressing smoothly ▪ Continued advancement of ou
Slide 5: Construction Segment Overview
Construction Segment Overview FY23 Recap ▪ Strong same-store sales growth largely replaced revenue from prior year divestitures ▪ Significantly increased rental fleet dollar utilization to 30% ▪ Achieved pre-tax margins of 6.0%, an increase of 110 bps YOY ▪ Same-store sales, absorption rate, and inv
Slide 6: International Segment Overview
International Segment Overview FY23 Recap ▪ Decline in revenues mainly driven by weak EUR (constant currency growth of 4.2%) and the conflict in Ukraine ▪ Achieved pre-tax margins of 6.8% (+290 bps YOY), despite decline in revenue ▪ Improved profitability illustrates continued maturation of European
Slide 7: Fourth Quarter Revenue Analysis
Fourth Quarter Revenue Analysis (in millions of dollars) Q4 FY2023 Q4 FY2022 Change Total Revenue $583.0 $507.6 +14.9% Equipment $471.0 $413.2 +14.0% Parts $72.2 $58.5 +23.6% Service $28.0 $26.2 +6.6% Rental & Other $11.8 $9.8 +21.3% 7
Slide 8: Fourth Quarter Financials
Fourth Quarter Financials (in millions of dollars, except per share) Q4 FY2023 Q4 FY2022 Change Total Revenue $583.0 $507.6 +14.9% Gross Profit $108.9 $94.2 +15.5% Gross Profit Margin 18.7% 18.6% +10 bps Operating Expenses $83.7 $64.6 -29.6% Floorplan and Other Interest Expense $2.1 $1.4 -47.6% Adju
Slide 9: Fourth Quarter Segment Overview
Fourth Quarter Segment Overview (in millions of dollars) Q4 FY2023 Q4 FY2022 Change Revenue $583.0 $507.6 +14.9% Agriculture $440.9 $346.3 +27.3% Construction $85.1 $87.9 -3.2% International $57.0 $73.4 -22.3% Adjusted Pre-Tax Income(1) $24.1 $28.8 +16.5% Agriculture(1) $19.3 $17.7 +9.6% Constructio
Slide 10: Full Year Revenue Analysis
Full Year Revenue Analysis (in millions of dollars) FY2023 FY2022 Change Total Revenue $2,209.3 $1,711.9 +29.1% Equipment $1,711.6 $1,291.7 +32.5% Parts $327.2 $266.9 +22.6% Service $129.8 $115.6 +12.2% Rental & Other $40.7 $37.7 +8.2% 10
Slide 11: Full Year Financials
Full Year Financials (in millions of dollars, except per share) FY2023 FY2022 Change Total Revenue $2,209.3 $1,711.9 +29.1% Gross Profit $439.8 $332.7 +32.2% Gross Profit Margin 19.9% 19.4% +50 bps Operating Expenses $301.5 $241.0 -25.1% Impairment Costs $— $1.5 *N/M Floorplan and Other Interest Exp
Slide 12: Full Year Segment Overview
Full Year Segment Overview (in millions of dollars) FY2023 FY2022 Change Revenue $2,209.3 $1,711.9 +29.1% Agriculture $1,601.7 $1,076.8 +48.8% Construction $308.5 $317.2 -2.7% International $299.1 $318.0 -5.9% Adjusted Pre-Tax Income(1) $136.0 $88.1 +54.3% Agriculture(1) $102.7 $60.6 +69.6% Construc
Slide 13: Balance Sheet Highlights January 31, 2023
Balance Sheet Highlights January 31, 2023 ▪ $44 Million of Cash ▪ Equipment Inventory of $535 Million as of January 31, 2023 vs. $324 Million as of January 31, 2022 • $174 million increase in new equipment and a $37 million increase in used equipment • Equipment inventory turn of 3.3 in FY23 vs. 3.4
Slide 14: Equipment Inventory
Equipment Inventory Used Inventory New Inventory Non-Interest Bearing Inventory Inventory Turns (1) $500 4.0 3.6 3.6 3.5 3.4 3.3 3.5 $400 3.0 2.5 $300 Millions Ratio 2.0 2.0 39.8% 47.4% 44.6% 39.8% 1.5 $200 1.5 41.2% 29.2% 33.0% 1.0 $100 0.5 $— 0.0 Q4 FY20 Q4 FY21 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4
Slide 15: FY2024 Outlook
FY2024 Outlook FY2024 Modeling Assumptions: Current Assumptions Segment Revenue Agriculture(1) Up 20 - 25% Construction Flat - Up 5% International Up 8% - 13% Diluted EPS(2) $4.50 - $5.10 (1) Includes the full year impact of the acquisitions of Mark's Machinery in April 2022, Heartland Ag Systems in
Slide 16: Appendix
Appendix TITAN MACHINERY Power & Precision to Grow”
Slide 17: Operating Expenses & Absorption
Operating Expenses & Absorption(1) Operating Expenses Absorption Rate $300 85.0% 82.2% 82.2% 82.5% 80.0% $250 77.7% Millions 77.5% Rate 75.0% $200 72.0% 72.5% 71.6% 70.0% 68.9% $150 67.5% FY18 FY19 FY20 FY21 FY22 FY23 (1) Absorption is calculated in a given period by dividing our gross profit from s
Slide 18: Same Store Results
(1) Same Store Results (in millions of dollars) Three Months Ended January 31, Percent Fiscal Year Ended January 31, Percent 2023 2022 Change 2023 2022 Change Same Store Sales* Agriculture $ 356.8 $ 336.1 6.2 % $ 1,378.5 $ 1,066.5 29.3 % Construction 85.1 66.6 27.8 % 306.9 244.2 25.7 % International
Slide 19: Adjusted Debt to Tangible Net Worth
Adjusted Debt to Tangible Net Worth Adjusted Debt Tangible Net Worth Adjusted Debt to Tangible Net Worth Covenant Limit $600 4.0 3.0 $400 Millions Ratio 2.0 1.3 $200 1.1 1.0 1.0 0.9 0.9 0.9 0.9 1.0 $— — Q4 FY19 Q4 FY20 Q4 FY21 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Note: Adjusted debt is calculated
Slide 20: Non-GAAP Reconciliation Tables
Non-GAAP Reconciliation Tables (in thousands, except per share data) Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 Adjusted Income Before Income Taxes Income Before Income Taxes $ 23,829 $ 28,767 $ 135,241 $ 86,901 Adjustments Impairment charges — — — 1,498 Ukrai
Slide 21: Non-GAAP Reconciliations Tables, continued
Non-GAAP Reconciliations Tables, continued (in thousands, except per share data) Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 Adjusted EBITDA Net Income $ 18,112 $ 22,435 $ 101,868 $ 66,047 Adjustments Interest expense, net of interest income 1,167 1,267 4,730 4
Slide 22: Non-GAAP Reconciliations Tables, continued
Non-GAAP Reconciliations Tables, continued (In thousands, except per share data) Three Months Ended January 31, Twelve Months Ended January 31, 2023 2022 2023 2022 Adjusted Income Before Income Taxes - Agriculture Income Before Income Taxes $ 19,345 $ 17,657 $ 102,733 $ 60,567 Adjustments Adjusted I