Titan International, Inc. (NYSE:TWI) Q1 2020 Results Conference Call May 7, 2020 9:00 AM ET Company Participants Todd Shoot - Senior Vice President, Investor Relations and Treasurer Paul Reitz - President and Chief Executive Officer David Martin - Senior Vice President and Chief Financial Officer Conference Call Participants Joe Mondillo - Sidoti & Company Kirk Ludtke - Imperial Capital Operator Ladies and gentlemen, thank you for standing by, and welcome to this morning's presentation. I would now like to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended: March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-12936 TITAN INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 36-3228472 (State of Incorporation) (I.R.S. Employer Identification No.) 2701 Spru ...

Financial Data and Key Metrics Changes - In Q4 2019, net sales were $302 million, a decline of 17% or $62 million from the prior year, with December sales being the lowest since December 2015 [39][44] - Gross profit for Q4 was $18 million, down from $37 million in Q4 2018, resulting in a gross profit margin of 6.1%, a drop of 400 basis points year-over-year [44][45] - The company reported an EBITDA margin of 2.6% for 2019, significantly lower than the 7.4% margin in 2018 [12][28] Business Line Data and Key Metrics Changes - Agricultural segment sales were $140 million, down 6.6% year-over-year, with volume down 15% but a favorable price and mix of 10.3% [47] - Earthmoving/construction segment sales decreased by $42 million or 24%, with volume down 23% and negligible price and mix impact [49] - Consumer segment sales were $30 million, down from $40 million in Q4 2018, with a gross profit of $2 million, reflecting a decline in volume and mix [52][54] Market Data and Key Metrics Changes - North American wheel volume was down 16%, and North American tire sales were down 15%, primarily due to reduced OEM production [42] - Latin America sales were down 12% from Q4 2018, with all segments showing weakness [42] - Russian market conditions improved slightly, with price and mix positively impacting sales by over 3% despite a slight volume decline [43] Company Strategy and Development Direction - The company aims to improve financial performance in 2020 with a target EBITDA of $75 million on flat sales of $1.45 billion [28][31] - Internal initiatives include operational cost structure actions expected to drive $10 million to $12 million in improvements, and a focus on strategic pricing to enhance margins [18][70] - The company is exploring divestitures of underperforming businesses, which could generate additional cash beyond the $30 million to $50 million from noncore asset sales [17][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2019 as a challenging year due to various external factors, including trade wars and market volatility, impacting financial results [7][8] - There is cautious optimism for 2020, with expectations of improved market conditions and better sales volumes compared to Q4 2019 [27][36] - The management emphasized the importance of product development and market intelligence in driving future growth [26][24] Other Important Information - The company generated operating cash flow of $45 million for the year and reduced debt by $31 million in Q4 [58][63] - Capital expenditures for 2019 were $36 million, with plans to hold capital expenditures around $35 million for 2020 [62] - The company has made significant progress in working capital management, targeting another $25 million reduction in 2020 [61] Q&A Session Summary Question: Guidance on flat revenue despite OEM production rates down - Management explained that flat revenue expectations are supported by strong aftermarket business and improved dealer and farmer sentiments, with potential for growth in the second half of the year [78][80] Question: Breakout of OEM versus aftermarket in major segments - Management indicated a roughly 50/50 split between aftermarket and OEM in the U.S. tire business, with variations in South America and Europe [81][82] Question: Changes in pricing strategy in the Ag segment - Management stated that pricing intelligence has improved, allowing for better pricing strategies despite volume declines [85][86] Question: Capacity utilization and potential consolidation plans - Management acknowledged low capacity utilization and indicated that they are exploring various steps to address this issue [88][89] Question: Status of noncore asset sales and liquidity - Management confirmed that $30 million of noncore asset sales have been completed, with another $20 million expected, ensuring adequate liquidity [90][101] Question: Impact of weather on the first half of the year - Management expressed optimism for better weather conditions compared to the previous year, which could positively influence planting cycles and demand [107] Question: OEM order rates and impact of coronavirus - Management noted an uptick in OEM order rates, particularly in agriculture, while acknowledging more volatility in construction due to supply chain issues related to coronavirus [113]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-12936 TITAN INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 36-3228472 (State or other jurisdiction of incorporation or organization) (I.R.S. Em ...

Titan International, Inc. (NYSE:TWI) Q3 2019 Results Conference Call November 7, 2019 9:00 AM ET Company Participants Todd Shoot - Senior Vice President, Investor Relations Paul Reitz - President and CEO David Martin - Senior Vice President and CFO Conference Call Participants Stephen Volkmann - Jefferies Joseph Mondillo - Sidoti & Company Larry De Maria - William Blair Operator Good morning, ladies and gentlemen, and welcome to the Titan International Incorporated Third Quarter 2019 Earnings Conference C ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section presents the unaudited financial statements and management's discussion and analysis for the period ended September 30, 2019 [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for Q3 and YTD 2019 reveal a performance decline, shifting from net income to a net loss, with reduced assets and improved operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $345,905 | $384,719 | $1,146,876 | $1,239,005 | | **Gross profit** | $27,100 | $43,704 | $110,672 | $161,577 | | **(Loss) income from operations** | $(12,616) | $4,823 | $(10,910) | $43,169 | | **Net (loss) income attributable to Titan** | $(19,144) | $2,295 | $(23,590) | $28,378 | | **Diluted EPS** | $(0.33) | $(0.03) | $(0.43) | $0.29 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Total current assets** | $732,394 | $779,481 | | **Total assets** | $1,189,602 | $1,251,256 | | **Total current liabilities** | $365,948 | $375,068 | | **Long-term debt** | $464,827 | $409,572 | | **Total liabilities** | $916,426 | $861,346 | | **Total Titan shareholders' equity** | $244,231 | $279,048 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | **Net cash provided by (used for) operating activities** | $31,212 | $(32,706) | | **Net cash used for investing activities** | $(96,622) | $(25,014) | | **Net cash provided by financing activities** | $63,956 | $17,069 | | **Net decrease in cash and cash equivalents** | $(3,082) | $(46,771) | | **Cash and cash equivalents, end of period** | $78,603 | $96,799 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company adopted new accounting standards, including ASU No. 2016-02 for leases (Topic 842), which resulted in the recognition of operating lease right-of-use assets and corresponding liabilities on the balance sheet as of January 1, 2019[26](index=26&type=chunk) - The company settled put options exercised by partners OEP and RDIF related to the Voltyre-Prom joint venture. The OEP settlement involved cash payments totaling **$46.7 million**. The RDIF settlement involved a **$25 million** cash payment and an agreement to issue **4,032,259 shares** of restricted Titan common stock[58](index=58&type=chunk)[59](index=59&type=chunk) - A subsidiary, Titan Tire, is involved in environmental litigation and has a contingent liability of **$6.5 million** accrued as of September 30, 2019, related to a U.S. District Court order[91](index=91&type=chunk) - Subsequent to the quarter end, on October 3, 2019, the company sold a portion of its shares in Wheels India Limited, receiving net proceeds of approximately **$19 million** which were used to pay down debt. A gain of **$4.7 million** was recorded in Q3 2019 based on the trade date[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2019 net sales decline due to market challenges, a sharp gross profit drop from lower volume and inventory issues, and sufficient liquidity despite a net loss [Market Conditions and Outlook](index=40&type=section&id=Market%20Conditions%20and%20Outlook) - **Agricultural Market:** Low commodity prices, tariffs, and poor weather have reduced farmer investment in new equipment. OEMs forecast flat sales for the remainder of 2019[141](index=141&type=chunk) - **Earthmoving/Construction Market:** After a strong start to 2019, the market declined in Q2 and Q3 due to global economic uncertainty. Demand is expected to be flat for the rest of 2019, with potential slight decreases in small/medium equipment[142](index=142&type=chunk) - **Consumer Market:** The company expects flat to modest growth for the remainder of 2019 across its various consumer product lines[143](index=143&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q3 2019 vs Q3 2018 Performance (in thousands) | Metric | Q3 2019 | Q3 2018 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $345,905 | $384,719 | (10.1)% | | **Gross profit** | $27,100 | $43,704 | (38.0)% | | **(Loss) income from operations** | $(12,616) | $4,823 | (361.6)% | - Q3 net sales decreased **10.1% YoY**, driven by a **6.9% decline in volume** due to challenges in the North American agriculture economy and a slowing global construction market[146](index=146&type=chunk) - Q3 gross profit margin fell to **7.8%** from **11.4%** in Q3 2018. The decline was driven by lower sales volume, production inefficiencies, and a negative impact of approximately **$7 million** from reducing steel inventory purchased at higher prices[148](index=148&type=chunk) - SG&A expenses increased in Q3 2019, primarily due to **$2.3 million** in costs related to the postponed public listing of the ITM undercarriage business[150](index=150&type=chunk) [Segment Information](index=43&type=section&id=Segment%20Information) Net Sales by Segment - Q3 (in thousands) | Segment | Q3 2019 | Q3 2018 | % Change | | :--- | :--- | :--- | :--- | | **Agricultural** | $156,625 | $163,367 | (4.1)% | | **Earthmoving/construction** | $155,659 | $180,362 | (13.7)% | | **Consumer** | $33,621 | $40,990 | (18.0)% | - The Agricultural segment's gross profit was compressed by approximately **$6 million** in Q3 due to the reduction of high-cost steel inventory in North American Wheel operations[169](index=169&type=chunk) - The Earthmoving/Construction segment's **13.7% sales decrease** was driven by a **9.3% drop in volume**, primarily from a tightening in the undercarriage business across most geographies[172](index=172&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2019, the company had **$78.6 million** in cash and **$37.3 million** available under its **$125 million** revolving credit facility[191](index=191&type=chunk) - Cash flow from operations was a source of **$31.2 million** in the first nine months of 2019, a significant improvement from a use of **$32.7 million** in the same period of 2018, primarily due to decreases in inventory (**$36.9 million**) and accounts receivable (**$16.1 million**)[183](index=183&type=chunk) - Investing activities used **$96.6 million**, largely due to a **$71.7 million** payment related to the settlement of the redeemable noncontrolling interest put option[187](index=187&type=chunk) - Total capital expenditures for 2019 are forecasted to be approximately **$40 million**[193](index=193&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes in its market risk exposures since the disclosures provided in its Annual Report on Form 10-K for the year ended December 31, 2018 - There have been no material changes in quantitative and qualitative disclosures about market risk from the company's 2018 Form 10-K[200](index=200&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of September 30, 2019, and concluded they were effective, with no material changes to internal control over financial reporting during the third quarter of 2019 - Management concluded that as of September 30, 2019, the company's disclosure controls and procedures were effective[201](index=201&type=chunk) - There were no changes in internal control over financial reporting during the third quarter of 2019 that have materially affected, or are reasonably likely to materially affect, the company's internal controls[202](index=202&type=chunk) [Part II. Other Information](index=50&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, and a comprehensive list of exhibits filed with the report [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with specific details regarding ongoing environmental litigation provided in Note 17 of the financial statements - The company is subject to routine legal proceedings. For details on significant litigation, refer to Note 17 in Part I, Item 1 of this report[207](index=207&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2018 - There have been no material changes from the risk factors disclosed in the 2018 Form 10-K[208](index=208&type=chunk) [Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a Sale Purchase Agreement and certifications from the Principal Executive Officer and Principal Financial Officer as required by the Sarbanes-Oxley Act - Exhibits filed include the Sale Purchase Agreement with OEP dated July 30, 2019, and CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[209](index=209&type=chunk)[211](index=211&type=chunk) [Signatures](index=51&type=section&id=Signatures)

Financial Data and Key Metrics Changes - Net sales in Q2 2019 were $391 million, representing a decline of almost 9% year-over-year, with a constant currency basis decline of approximately 5% [44] - Gross profit for Q2 2019 was $38 million, down from $58 million in Q2 2018, resulting in a gross margin of 9.8% compared to 13.6% last year [48][66] - The company anticipates 2019 sales to be flat to down 3% compared to 2018, with expected gross margin improvement to be in the range of 11.2% to 11.6% for the full year [23] Business Line Data and Key Metrics Changes - Agriculture segment net sales were $164 million, down 12% year-over-year, with North American tire sales down 15% primarily due to sector issues [55][56] - Earthmoving/construction segment sales decreased by 7% to $184 million, with a slight sequential improvement from Q1 [60] - Consumer segment sales were approximately $41 million, down 3.6% from the previous year, with gross profit declining to $4.4 million [64][65] Market Data and Key Metrics Changes - North American tire aftermarket business experienced a significant drop in demand, particularly in the last month of Q2 [14] - Russian agriculture sales were down 35% due to market challenges, while South American agriculture sales increased by 2.5% [57][58] - European agriculture sales lagged behind the previous year by about 22% due to negative currency impacts and volume declines [58] Company Strategy and Development Direction - The company is focused on managing through the current cycle, protecting the balance sheet, and building for the future through innovation and product development [25][30] - Titan plans to pursue the sale of non-core assets to improve working capital and protect the balance sheet, with expected cash inflows between $30 million and $50 million [28][82] - The board has postponed the potential AIM listing of ITM due to unfavorable market conditions, but remains optimistic about its future growth [40][41] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter was disappointing due to global trade battles and poor conditions in the U.S. farming sector [10][21] - The company expects to see improvements in gross margins in the second half of the year, driven by lower production costs and improved market conditions [23][27] - Management acknowledged the challenges faced in the agriculture sector but remains optimistic about pent-up demand being released later in the year [24][25] Other Important Information - The company has settled the Russian put option with One Equity Partners, fully satisfying the obligation [35][36] - Titan's cash position remained steady, with efforts to reduce receivables and inventory balances [73][74] - Capital expenditures for the year are anticipated to be at or below $40 million, down from the original expectation of $40 million to $50 million [77] Q&A Session Summary Question: Guidance for topline revenue - Management expects a slight improvement in agriculture and construction segments, with careful consideration of downside risks [87][89] Question: Wheel inventory build and OEM visibility - The inventory build was based on expectations of favorable market conditions and the need to prepare for specific orders [95][96] Question: ITM business and potential monetization - The board is pleased with ITM's performance and believes in its future growth, but the AIM listing has been postponed due to market conditions [99][100]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended: June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 36-3228472 (State of Incorporation) (I.R.S. Employer Identification No.) 2701 Spruce Street, Quincy, IL 62301 (Address of principal executive offices, including Zip Code) (217) 228-6011 (Registra ...

Financial Data and Key Metrics Changes - Net sales for Q1 2019 were $410 million, a decline of 3.5% year-over-year, but up 13% from Q4 2018 [27] - Gross profit for Q1 was $45.3 million, down from $59.6 million in Q1 2018, with gross margin at 11% compared to 14% last year [30] - The impact of currency devaluation on gross profit was approximately $2.5 million versus the prior year [30] Business Line Data and Key Metrics Changes - Agricultural segment net sales were $192 million, down 1.3% year-over-year, but would have been up 4% without negative currency impact [36] - Earthmoving/Construction segment sales decreased by 6.4% to $177 million, with volume down by 4% [39] - Consumer segment net sales were roughly $42 million, decreasing slightly year-over-year, with gross profit down $7 million from a year ago [42] Market Data and Key Metrics Changes - North American sales were relatively flat year-over-year, with challenges noted in Russia, Europe, and Latin America [29] - Russian agricultural sales were down 26% due to market challenges, while European agricultural sales lagged by 22% [37] - Latin American business faced headwinds, particularly in Argentina and Colombia, impacting export sales from Brazil [33] Company Strategy and Development Direction - The company is focusing on improving its product mix in Russia from 95% aftermarket to more OEM sales [22] - The management team is evaluating strategic alternatives for ITM, the undercarriage business, with potential for a public listing [66][70] - The company is implementing an 80-20 program for North American tire to stabilize sales in a tough market [20] Management Comments on Operating Environment and Future Outlook - Management noted that weather conditions and trade disputes have negatively impacted farmer sentiment and spending [14][24] - Despite a challenging Q1, management believes the fundamentals have not shifted significantly, maintaining 2019 guidance [24] - The company expects to see improved margins and profitability as market conditions stabilize and production ramps up [85] Other Important Information - The company experienced a negative foreign currency impact of $25 million in sales and approximately $2.5 million in lost gross margin [16] - Capital expenditures for Q1 were $9.5 million, in line with expectations for the year [54] - The company has sufficient liquidity and plans to upsize its credit facility to $125 million [63] Q&A Session Summary Question: What is the cash requirement for daily operations? - Management indicated that the company can operate effectively with cash levels between $60 million to $80 million [73] Question: Will the company be cash positive this year? - Management expects to achieve positive cash flow by the end of the year, though not necessarily in the first half [74] Question: What is the status of the $25 million share repurchase program? - The Board will consider stock price and internal cash flow when deciding on the program, which is intended to be managed over time [96] Question: What were the surprises in Q1 results compared to guidance? - Management noted unexpected margin hits and weaker performance in January and February, but sees opportunities for recovery [100] Question: What factors will drive better margins moving forward? - Management expects stronger production in North American tire and favorable raw material prices to contribute to improved margins [106]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended: March 31, 2019 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-12936 TITAN INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 36-3228472 (State of Incorporation) (I.R.S. Employer Identification No.) 2701 Spru ...