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Investor PresentationMay 2019
2
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 off-highway wheels, tires, assemblies and undercarriage products.
Titan has a heritage of over 100 years in the off-highway wheel manufacturing business and is the world’s
largest manufacturer of off-highway wheels. Titan has complete research and development test facilities to
validate wheel and rim designs.
Since Titan's entrance into the tire market in 1993, we have evolved into a leading global supplier of
complete wheel and tire assemblies for off-highway vehicles. Titan manufactures under the Goodyear
Farm Tire and Titan Tire brands.
Titan International Overview
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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/Construction
Consumer
Titan International Overview: Strategy
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Titan International Overview: Customers
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Source: Titan filings
North America
Quincy, IL
(International headquarters)
Bryan, OH
Des Moines, IA
Elkhorn, WI
Freeport, IL
Fort McMurray, AB, Canada
Saltville, VA (closing)
Saskatoon, SK
Union City, TN
Winston-Salem, NC
Latin / South America
Atibaia, Brazil
Iquique, Chile
Lima, Peru
São Paulo, Brazil
Santiago, Chile
Naucalpan de Juarez, Mexico
Buenos Aires, Argentina
Europe
Ceprano, Italy Kidderminster, UK
Fanano, Italy Monreal del Campo, Spain
Finale Emilia, Italy Potenza, Italy
Flers, France St. Helens, UK
Gevelsburg, Germany Valsamoggia, Italy
Jesi, Italy Volgograd, Russia
Australia
Emerald, QLD
Kalgoorie, WA
Karratha, WA
Mildura, VIC
Muswellbrook, NSW
Perth, WA
Port Hedland, WA
Yatala, QLD
Asia / Africa
Aydin, Turkey
Nuffield Springs,
South Africa
Tianjin, China Tires
Wheels
Undercarriage
Mining Services
Distribution
Titan International Overview: Global Footprint
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Note: Certain amounts from prior years have been reclassified to conform to the current year’s presentation.
AGRICULTURE
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Large hp equipment (4WD tractors and Combines)
remain well below historical averages.
Ag-related commodity prices remain lower and have
declined in the midst of tariffs and trade concerns.
Farmer income has stabilized and is expected to be
similar in 2019 as compared to 2018.
Used equipment inventory levels and values have both
improved over the past year.
North America equipment dealer sentiment has
improved during 2018 and into 2019.
Tax Cuts & Jobs Act makes Section 179 deduction
permanent and increasing limits. Bonus depreciation is
allowed for both new and used equipment, and is
permitted at the 100% rate through 2022. This is good
for farmers purchasing equipment.
AGRICULTURE: Market Summary
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AGRICULTURE: Low Sidewall Technology
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AGRICULTURE: Low Sidewall Technology
TIRES vs TRACKS
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AGRICULTURE: Low Sidewall Technology
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Note: Certain amounts from prior years have been reclassified to conform to the current year’s presentation.
OFF-THE-ROAD (OTR)
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Demand for larger construction equipment used
for highways and infrastructure remains strong.
Private construction spending for residential and
non-residential remains strong.
Overall mining equipment demand has
strengthened within certain regions with
commodity prices improved.
Potential for a U.S. infrastructure bill, but not
anticipated to have an impact in the near-term
OTR: Market Summary
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OTR: ITM Products & Customers
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OTR: ITM Product Applications
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OTR: Europe Wheel
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OTR: Product Highlights
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OTR: Product Innovations
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Note: Certain amounts from prior years have been reclassified to conform to the current year’s presentation.
CONSUMER
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CONSUMER: Growing Opportunity
The consumer market continues to present opportunities for Titan with products that have strong margins. The
specialty products group had its first full year of operations in 2017, and saw significant sales increases for
mud flaps and cattle mats for the dairy market. We continued this expansion into the swine and equestrian
market during 2018.
Financial
Overview
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Financial Overview: 2019 Outlook
(Amounts in millions) 2018 Actual 2019 Outlook
Net Sales $1,602
$1,698 – $1,722
$722 – $736 (Ag)
$801 – $812 (OTR)
$170 – $174 (Con)
6% – 7.5% Growth
4% – 6% (Ag)
8% – 9.5% (OTR)
2.5% – 4.5% (Con)
Gross Margin $198 $217 - $227 Between 12.8% – 13.2%
SGA & RD $146 ~$150
EBITDA (excludes FX) $119 $124 - $134
CAPEX $39 $40 - $50
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Financial Overview: Highlights & Challenges
Net sales were $410.4 million, a $15.0 million decrease YoY, net sales would have increased nearly 10 million YoY on a constant currency basis
SGARD expenses were $38.5 million (9.4% of net sales)
Income from operations was $4.1 million
Net income applicable to common shareholders was $1.2 million and EPS was $0.02
Adjusted EBITDA was $19.8 million
Q1 Financial Challenges
Continued trend of volumes below longer-term, historical averages in Large Ag products (higher ASP and margin) driven by lower commodities
/ farm income / cash receipts
Currency headwinds reduced net sales by $25 million and gross profit approximately $2.5 million YoY, particularly in Europe and Brazil
Margin pressure as a result of factors such as: U.S. weather conditions which have slowed planting and delayed aftermarket demand, targeted
sales incentives to combat the weather related slow start, higher Q4’18 inventory costs which carried into Q1, LatAm exports and light truck
sales headwinds, and production efficiencies in Russia and Europe as ag markets have seen some decrease in demand
Q1 Financial Highlights
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47%
43%
10%GP: 11.9%
GP: 10.3% GP: 11.5%
Agriculture: Tractors, combines, implements, irrigation
Earthmoving/Construction: Mining, cranes, aerial lifts, haul trucks, scrapers
Consumer: Light-truck tires, ATVs, turf equipment, specialty products (includes livestock mats and mud flaps)
Agriculture
Consumer
Earthmoving / Construction
Q1 2019 Segment Revenue
Sales: $410.4M GP: 11.0% vs. Q1’18: -3.0%
⬇ 1.3% vs. Q1 2018
⬇ 6.4% vs. Q1 2018
⬇ 1.4% vs. Q1 2018
⬇ 3.9% vs. Q1 2018
⬇ 1.6% vs. Q1 2018
⬇ 4.9% vs. Q1 2018
Sa
les
GP
%Financial Overview: FY 2018 by Market
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$153
$181$194 $192
11% 12%15%
12%$50
$70
$90
$110
$130
$150
$170
$190
$210
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q1 '16 Q1 '17 Q1 '18 Q1 '19
Net Sales: Declined 1.3% Q1‘19 vs. Q1‘18
On a constant currency basis, net sales would have increased 4.4%
Gross margin declined ~390 bps YoY
Volume down (2.5%); Price/mix up 7.0%; FX down (5.7%)
AG
47%
Net Sales: Down (1.4%) Q1‘19 vs. Q1‘18
On a constant currency basis, net sales would have increased 6.7%
Gross margin declined ~500 bps YoY
Volume down (4.9%); Price/mix up 11.6%; FX down (8.1%)
Consumer
10%
EMC
43%
Net Sales: Declined 6.4% Q1‘19 vs. Q1‘18
On a constant currency basis, net sales decline would have been less
the 1%
Gross margin declined ~160 bps YoY
Volume down (4.1%); Price/mix up 3.3%; FX down (5.5%)
$132$136
$189$177
7% 10% 12% 10%
$100
$110
$120
$130
$140
$150
$160
$170
$180
$190
$200
-2%
8%
18%
28%
38%
48%
58%
68%
78%
Q1 '16 Q1 '17 Q1 '18 Q1 '19
$37$41 $42 $42
7%
13% 17%12%
$0
$25
$50
-2%
8%
18%
28%
38%
48%
58%
68%
78%
Q1 '16 Q1 '17 Q1 '18 Q1 '19
Note: Certain amounts from prior years have been reclassified to conform to the current year’s presentation.
Financial Overview: Sales and Gross Margin
* GP% net of adjustments.
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(Amounts in millions) Q1 2019 Q1 2018 Q1 2017 Q1 2016
Sales $410.4 $425.4 $357.5 $321.8
Gross Margin $45.3 $59.6 $40.2 $28.8
Gross Margin % 11.0% 14.0% 11.2% 8.9%
Operating Income (Loss) $4.1 $19.4 ($6.6) ($11.0)
Operating Income % 1.0% 4.6% (1.8%) (3.4%)
Net income (loss) attrib. to Titan $2.0 $17.6 ($11.5) ($12.7)
Earnings per share - Diluted $0.02 $0.26 ($0.21) ($0.24)
Financial Overview: Summary Income & EPS
Note: Certain amounts from prior years have been reclassified to conform to the current year’s presentation.
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Financial Overview: EBITDA Reconciliation
Appendix
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Appendix
Sales – N. America vs. International
* Note: North America includes corporate expenses.
-12 Quarters -8 Quarters -4 Quarters Current Quarter
(Amounts in $ millions) 2016 2017 2018 2019
Sales - Total $321.8 $357.5 $425.4 $410.4
Sales - N. America $149.4 $150.2 $179.1 $185.3
Sales - International $172.4 $207.3 $246.3 $225.1
Gross Margin $28.8 $40.2 $59.6 $45.3
Gross Margin - N. America $12.0 $15.4 $28.2 $24.1
% 8.0% 10.2% 15.8% 13.0%
Gross Margin - International $16.8 $24.8 $31.3 $21.2
% 9.8% 12.0% 12.7% 9.4%
Gross Margin% 8.9% 11.2% 14.0% 11.0%
Operating Profit ($11.0) ($6.6) $19.4 $4.1
Operating Profit - N. America ($10.79) ($12.0) $6.5 $1.7
% -7.2% -8.0% 3.6% 0.9%
Operating Profit - International ($0.2) $5.4 $12.9 $2.4
% -0.1% 2.6% 5.2% 1.1%
Operating Profit % -3.4% -1.8% 4.6% 1.0%
FINANCIAL SUMMARY
149
150
179 185
172 207
246
225
-3.4%
-1.8%
4.6%
1.0%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2016 2017 2018 2019
Mill
ion
sQ1 - Sales / Operating Income (Amounts in Millions)
Sales - N. America Sales - International Operating Profit %
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Appendix
Working Capital / CCC
2019
Q1 Q2 Q3 Q4 Q1
Days Sales Outstanding (DSO) 63 60 62 61 66
Days A/P in Inventory (DPI) 96 96 106 115 107
Days Payable Outstanding (DPO) (59) (58) (58) (62) (65)
Cash Conversion Cycle 100 98 110 114 108
Cash $112,429 $106,491 $96,799 $81,685 $68,315
Cash % of 12 Mo Sales 7.3% 6.7% 6.0% 5.1% 4.3%
2018
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Appendix
Debt Structure
Q1 '19 Q4 '18 Q3 '18 Q2 '18 Q1 '18
Cash $68 $82 $97 $106 $112
Total Debt $499 $461 $461 $462 $463
6.50% Secured Notes Due 2023 $395 $395 $395 $395 $394
Titan Europe Credit Facilities $37 $35 $36 $34 $33
Revolving Credit Facility $25 $0 $0 $0 $0
Other $42 $31 $30 $33 $36
Net Leverage (Net Debt / Trailing 12 Mos AEBITDA) 4.47x 3.19x 2.88x 2.97x 3.35x
Interest Expense $7.9 $6.8 $7.6 $7.7 $7.5
CASH / DEBT
$395
$37 $42 $25
6.50% Secured NotesDue 2023
Titan Europe Credit Facilities Other $75m ABL Credit FacilityDue Feb 2022
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Appendix
Cost Structure
Raw
Materials
~50-55%
Overhead
~30-35%
Labor
~10-15%
Primary Raw MaterialsGP Cost Structure Breakdown
Steel
Natural Rubber
Synthetic Rubber
Carbon Black
Nylon
35
Appendix
Financial Summary 2014 - 2018
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Appendix
Financial Summary 2018
Net sales increased $133.5 million, or 9.1% YoY, and net sales increased 11.3% on a constant currency basis
Gross profit increased $38.0 million, a 23.7% YoY improvement
SG&A expenses were $134.8 million (8.4% of net sales), a $15.9 YoY decrease
Operating income was $42.2 million, a $53.4 million YoY improvement
EPS was $0.06, with adjusted EPS of $0.27, a $1.18 YoY improvement on an EPS basis and a $0.76 YoY improvement on adjusted EPS
Adjusted EBITDA was $119.1 million, a 64% YoY improvement
2018 Financial Highlights
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Appendix
Financial Summary 2018
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Appendix
Financial Summary 2018
AGRICULTURE OTR
CONSUMER
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SAFE HARBOR STATEMENT: 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 expectations and subject to a number of risks and
uncertainties, certain of which are beyond the Company’s control.
Actual results may differ materially from those projected in these forward looking statements as a result of certain factors
which are contained in the Company’s most recent 10K filing. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of
these risks and uncertainties, there can be no assurance that the forward-looking information contained in this document will in fact transpire.
Titan Website: www.titan-intl.comInvestor Relations
