2
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.
3
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 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
4
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/Construction
Consumer
5
COMPETITIVE ADVANTAGES
TITAN/GOODYEAR
MICHELIN
BRIDGESTONE
GKN
Titan International Overview: Portfolio
7
Titan International Overview: Global Footprint
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
Sydney, NSW
Yatala, QLD
Asia / Africa
Aydin, Turkey
Jakarta, Indonesia
(closing)
Nuffield Springs,
South Africa
Tianjin, China
Tires
Wheels
Undercarriage
Mining Services
Distribution
9
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 beginning in 2016)
Used equipment inventory levels remain above historical averages, but declined within the past year
Used equipment values have stabilized and in some cases increased over the past year
Legislation passed to reinstate tax incentives including Section 179 deduction (permanent) and bonus depreciation
(phased out in 2020)
Despite recent increases, interest rates remain at historically low levels for financing new equipment purchases
AGRICULTURE: Market Summary
15
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
OTR: Market Summary
25
Financial Overview: Highlights & Challenges
Net sales increased $64.8 million to $371 million, up 21% year-over-year; the third consecutive quarter of significant YOY growth
Gross profit increased $4.7 million or 14% YOY
SG&A expenses were $39.8 million (10.7% of net sales); while adjusted SG&A expenses were 9.0% of net sales, after adjusting for a contingent liability of $6.5 million accrued during the quarter
Loss from operations was $5.1 million; representing income from operations of $1.4 million, after giving effect to the above adjustment. On an adjusted basis, this represents a $7.7 million increase YOY
Agriculture segment net sales increased 23% YOY during the third quarter with North America up 26% and all regions experiencing double digit YOY growth.
EBITDA was $13.3 million while adjusted EBITDA was $18.9 million
Cash and cash equivalents ended the quarter at $155.7 million
Q3 Highlights
Q3 Challenges
Continued trend of lower volumes in Large Ag products (higher ASP and margin) driven by lower commodities / farm income / cash receipts
Gross profit as a percentage of net sales was negatively impacted on a year-over-year basis as a result of pricing initiatives to selectively grow
market share.
During this quarter, we accrued a contingent liability of $6.5 million associated with the Dico, Inc. and Titan Tire Corporation legal judgment,
which we will appeal.
26
Financial Overview: Q3 2017 by Market
46%
42%
12%
GP: 14.2%
GP: 9.3% GP: 11.1%
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
Agriculture
Consumer
Earthmoving / Construction
Q3 2017 Segment Revenue
Sales: $371.0M GP: 10.7% vs.Q316: -0.7%
⬆ 23% vs. Q3 2016
⬆ 21% vs. Q3 2016
⬆ 13% vs. Q3 2016
⬇ 2.3% vs. Q3 2016
⬆ 0.3% vs. Q3 2016
⬆ 1.9% vs. Q3 2016
Sa
les
GP
%
27
$211
$140 $139
$171
12%9%
13%11%
$50
$70
$90
$110
$130
$150
$170
$190
$210
$230
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Q3 '14 Q3 '15 Q3 '16 Q3 '17
Financial Overview: Sales and Gross Margin
Net Sales: Up 23% Q3 ‘17 vs. Q3 ‘16
Gross margin declined 234 basis points compared to Q3 ’16
Improvements in both OEM and Aftermarket businesses
Volume up 16%; Price/mix up 6%; FX up 1%
AG
46%
Net Sales: Up 13% Q3 ’17 vs. Q3 ’16
Gross margin improved 187 basis points compared to Q3 ‘16
Volume up 10%; Price/mix flat; FX up 3%
Consumer
12%
EMC
42%
Net Sales: Up 21% Q3 ‘17 vs. Q3 ’16
Gross margin improved 33 basis points compared to Q3 ‘16
Positive movement within aftermarket business
Volume up 14%; Price/Mix up 5%; FX up 2%
$170
$126 $129
$156
7% 6% 9% 9%
$100
$110
$120
$130
$140
$150
$160
$170
$180
-2%
8%
18%
28%
38%
48%
58%
68%
78%
Q3 '14 Q3 '15 Q3 '16 Q3 '17
$72
$43$39
$44
12% 10% 12% 14%
$0
$25
$50
$75
$100
-2%
8%
18%
28%
38%
48%
58%
68%
78%
Q3 '14 Q3 '15 Q3 '16 Q3 '17
Note: Certain amounts from prior years have been reclassified to conform to the current year’s presentation.
28
Financial Overview: Summary Income & EPS
(Amounts in millions) Q3 2017 Q3 2016 YTD 2017 YTD 2016
Sales $371.0 $306.2 $1,092.9 $958.2
Gross Margin $39.7 $34.9 $123.0 $106.9
Gross Margin % 10.7% 11.4% 11.3% 11.2%
Operating Income (Loss) ($5.1) ($6.3) ($8.2) ($15.3)
Operating Income % (1.4%) (2.1%) (0.8%) (1.6%)
Net loss applicable to common
shareholders($12.9) ($9.4) ($33.7) ($32.5)
Earnings Per Share - Diluted ($0.22) ($0.17) ($0.57) ($0.60)
29
Financial Overview: Income Reconciliation
Q3 2017USD Amounts in Millions Q3 2017 Q3 2016 YTD 2017 YTD 2016
Net loss applicable to common shareholders (12.9) (9.4) (33.7) (32.5)
Remove redemption value adjustment (0.9) (1.4) (4.0) (8.5)
Net income (loss) attributable to Titan (12.0) (8.0) (29.8) (24.0)
Contingency accrual 6.5 6.5
Adjusted net income (loss) attrib. to Titan (5.5) (8.0) (23.3) (24.0)
Adjusted EPS - Diluted (0.09) (0.15) (0.39) (0.45)
Ad
justm
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ts
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Financial Overview: EBITDA Reconciliation
Q3 2017USD Amounts in Millions Q3 2017 Q3 2016 YTD 2017 YTD 2016
Net income (loss) (11.2) (9.0) (28.3) (25.1)
Provision for income taxes 2.4 (2.1) 6.0 2.6
Interest expense 7.5 8.7 22.6 25.2
Depreciation & amortization 14.5 14.3 44.0 44.9
EBITDA 13.3 11.9 44.2 47.6
Contingency accrual 6.5 - 6.5 -
Foreign exchange gain (loss) (0.8) (0.4) (0.0) (7.4)
Adjusted EBITDA 18.9 11.5 50.7 40.2
Ad
jus
tme
nts
Ad
j
32
Appendix
Sales – N. America vs. International-12 Quarters -8 Quarters -4 Quarters Current Quarter
(Amounts in $ millions) 2014 2015 2016 2017
Sales - Total $452.8 $308.8 $306.2 $371.0
Sales - N. America $209.9 $144.4 $120.0 $148.3
Sales - International $242.9 $164.4 $186.2 $222.7
Gross Margin $45.2 $25.1 $34.9 $39.7
Gross Margin - N. America $21.8 $11.7 $12.8 $14.1
% 10.4% 8.1% 10.6% 9.5%
Gross Margin - International $23.3 $13.4 $22.2 $25.6
% 9.6% 8.1% 11.9% 11.5%
Gross Margin% 10.0% 8.1% 11.4% 10.7%
Operating Profit ($2.6) ($15.5) ($6.3) $1.4
Operating Profit - N. America ($1.2) ($11.7) ($10.5) ($5.7)
% -0.6% -8.1% -8.8% -3.9%
Operating Profit - International ($1.4) ($3.8) $4.2 $7.1
% -0.6% -2.3% 2.3% 3.2%
Operating Profit % -0.6% -5.0% -2.1% 0.4%
Note: Gross Margin and Operating Income net of adjustments.
FINANCIAL SUMMARY
210
144 120
148
243
164 186
223
-0.6%
-5.0%
-2.1%
0.4%
-6%
-4%
-2%
0%
2%
4%
6%
8%
$0
$100
$200
$300
$400
$500
2014 2015 2016 2017
Mill
ions
Q3 - Sales / Operating Income (Amounts in Millions)
Sales - N. America Sales - International Operating Profit %
33
Appendix
Working CapitalQuarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Days Sales Outstanding (DSO) 61 54 55 53 59 55 58
Days A/P in Inventory (DPI) 88 92 100 95 88 96 95
Days Payable Outstanding (DPO) (45) (49) (54) (52) (56) (56) (53)
Cash Conversion Cycle 104 97 101 96 91 95 100
Cash & CDs $191,102 $207,244 $215,515 $197,827 $181,158 $153,236 $155,675
Cash & CDs % of 12 Mo Sales 14.5% 16.3% 17.0% 15.6% 13.9% 11.5% 11.1%
2016 2017
248184 184
236
376
293282
331
207128 152 184
23.0%
28.3%
25.6% 25.8%
0%
5%
10%
15%
20%
25%
30%
$0
$100
$200
$300
$400
$500
$600
$700
2014 2015 2016 2017
Mill
ion
s
Q3 - WORKING CAPITAL (Amounts in Millions)
AR Inventory AP Working Capital as % of Sales
34
Appendix
YTD Cash & CDs ActivitySeptember 2017
$197.8
$155.7
44.0
36.7
33.5
23.03.7 2.0 1.1 0.5
23.6
28.3
41.0
46.1
46.7
-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Millio
ns
35
Appendix
Debt Structure
Q3 '17 Q2 '17 Q1 '17 Q4 '16 Q3 '16
Cash & CDs $156 $153 $181 $198 $216
Total Debt $447 $451 $456 $506 $501
6.875% Secured Notes Due 2020 $396 $396 $396 $396 $396
Titan Europe Credit Facilities $34 $35 $36 $34 $37
Other $17 $20 $24 $76 $68
Net Leverage (Net Debt / Trailing 12 Mos EBITDA) 4.94x 5.83x 4.70x 5.52x 5.47x
Interest Expense $7.5 $7.3 $7.6 $7.0 $8.7
6.875% Secured Notes Due 2020 $6.9 $6.9 $6.9 $6.9 $6.9
Titan Europe Credit Facilities $0.1 $0.0 $0.0 $0.1 $0.4
Other $0.5 $0.4 $0.7 $0.0 $1.4
CASH / DEBT
$396
$34 $17 $0
6.875% Secured NotesDue Oct 2020
Titan Europe Credit Facilities Other $75m ABL Credit FacilityDue Feb 2022
36
Appendix
Cost Structure
Raw
Materials
55%
Overhead
25%
Labor
20%
Primary Raw MaterialsCost Structure Breakdown
Steel
Natural Rubber
Synthetic Rubber
Carbon Black
Nylon
Investor Relations
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.
Company Website:
www.titan-intl.com