Timken : KeyBanc Industrials and Basic Materials Virtual Conference

The Timken Company

KeyBanc Industrials and Basic Materials Virtual Conference

June 03, 2021

Advancing as a Global Industrial Leader

Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information

Certain statements in this presentation (including statements regarding the company's forecasts, beliefs, estimates and expectations) that are not historical in nature are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, the statements related to Timken's plans, outlook, projected cost savings, targets, projected sales, cash flows, liquidity and expectations regarding the future financial performance of the company are forward-looking.

The Company cautions that actual results may differ materially from those projected or implied in forward-looking statements due to a variety of important factors, including: the company's ability to respond to changes in its end markets that could affect demand for the company's products or services; unanticipated changes in business relationships with customers or their purchases from the company; changes in the financial health of the company's customers, which may have an impact on the company's revenues, earnings and impairment charges; fluctuations in material and energy costs; the impact of changes to the company's accounting methods; political risks associated with government instability; recent world events that have increased the risk posed by international trade disputes, tariffs and sanctions; weakness in global or regional economic conditions and capital markets; the company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms; fluctuations in currency valuations; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies, including realizing any accretion within expected timeframes or at all; the impact on operations of general economic conditions; fluctuations in customer demand; the impact on the company's pension obligations and assets due to changes in interest rates, investment performance and other tactics designed to reduce risk; the introduction of new disruptive technologies; unplanned plant shutdowns; the effects of government-imposed restrictions meant to address climate change; unanticipated litigation, claims, investigations or assessments; the Company's ability to maintain appropriate relations with unions and works councils; negative impacts to the company's business, results of operations, financial position or liquidity as a result of COVID-19 or other epidemics and associated governmental measures such as restrictions on travel and manufacturing operations; and the company's ability to complete and achieve the benefits of announced plans, programs, initiatives, acquisitions and capital investments. Additional factors are discussed in the company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2020, quarterly reports on Form 10-Q and current reports on Form 8-K. Except as required by the federal securities laws, the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This presentation includes certain non-GAAP financial measures as defined by the rules and regulations of the Securities and Exchange Commission. Reconciliation of those measures to the most directly comparable GAAP equivalents are provided in the Appendix to this presentation.

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The Timken Company

Company Overview and Strategy

Advancing as a Global Industrial Leader

Timken at a Glance

							2020 Key Metrics
TKR	>17K	42	98+	22.3%			$3.5B	Revenue
		$659M	Adjusted EBITDA
Founded 1899	Timken	Countries	Years	5-year			18.8%	Adjusted EBITDA Margins
NYSE listed	employees	worldwide	continuous	annualized
since 1922			quarterly	total		$4.10	Adjusted EPS
			dividends	shareholder
				return(1)(2)			$456M	Free Cash Flow
						1.4%	Dividend Yield(1)
Product Offering Sales(3)	Sales by Channel(3)		Sales By Geography(3)

34%			40%			Original Equipment
		Engineered Bearings				Manufacturers (OEM)
66%		Power Transmission		60%		Distribution/End-Users
	Products

1. Total shareholder return and dividend yield as of March 31, 2021.
2. Total shareholder return for the Company was calculated on an annualized basis, assumes quarterly reinvestment of dividends
3. Percentage of actual sales for 2020.

48%	23%
North America
	Asia Pacific
5%
Latin America
	24%
	Europe, Middle East, Africa

See appendix for reconciliations of adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and free cash flow to their most directly comparable GAAP financial measures. Free cash flow is defined as net	4
cash provided by operating activities minus capital expenditures.

A Broad and Market-Leading Product Portfolio

BEARINGS

LINEAR MOTION

LUBRICATION SYSTEMS

DRIVES & GEARS

BELTS & CHAIN

COUPLINGS, CLUTCHES & BRAKES

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