The Timken Company Corporate Summary 2010
Who We Are Industrial technology company Trusted provider of friction management and power transmission solutions, specialty steels and services Committed to helping customers around the world succeed Serving diverse market segments, including: aerospace, mining, energy, rail, wind, construction, truck, auto and distribution Sales of $3.1 billion in 2009 17,000 associates in 26 countries and territories 3
Our History Founded in St. Louis in 1899 by carriage maker Henry Timken after receiving patents for a tapered roller bearing Relocated to Canton, Ohio, in 1901 to be closer to automotive industry Developed unique expertise in friction management and power transmission to improve equipment efficiency Initiated steel production in 1917 4
Our Vision Our Vision We are dedicated to improving our customers performance by applying our knowledge of friction management and power transmission to deliver unparalleled value and innovation all around the world. Our Values Ethics & Integrity Quality Innovation Independence 5
Our Global Footprint North America $2,093m Sales 39 Facilities 4 Joint Ventures Latin America $104m Sales 3 Facilities 1 Joint Venture Europe $536m Sales 12 Facilities 2 Joint Ventures Asia Pacific $369m Sales 11 Facilities 1 Joint Venture Rest of World $40m Sales 2 Facilities Note: Facility counts include manufacturing, distribution and technology and engineering centers. Sales data for year ended December 31, 2009. 6
Global Manufacturing England France Netherlands Italy Poland Romania United States Canada China India Brazil 7 South Africa
Global Citizenship Our commitment to global citizenship touches every aspect of our business We build sustainable value for the benefit of all of our stakeholders We conduct ourselves in keeping with our core values of ethics and integrity, quality, innovation and independence We are recognized for this dedication to our core values 8
Our Technology Experts in friction management and power transmission Technical solutions and services to help equipment run harder, faster and longer Invest to extend capabilities and development of products that customers value 8 technology and engineering centers 9
Our Strategy 10 Enhance existing products and services Leverage technology to create value Capture lifetime of opportunity Industrial markets Geographies Channels Structure portfolio for value creation Fix/Exit underperforming sectors Improve efficiency Lower cost structure Increase agility Deliver greater profitability & build on brand promise
Our Offering Friction-management solutions and services Power transmission products and services Expertise in materials science Precision manufacturing that delivers consistent quality Global distribution 11
Our Business Structure Steel Group Bearings and Power Transmission Group 12 Mobile Industries Process Industries Aerospace & Defense Alloy Steel & Value-added Solutions Light Vehicle Off Highway Rail Auto Aftermarket Heavy Truck Heavy Industries Industrial Processes Gear Drives Energy Industrial Distribution Defense Commercial General Aviation Positioning Control Health Oil & Gas Mobile On Highway Industrial
Mobile Industries Bearings and Power Transmission Group Mobile Industries Light Vehicles Off Highway Rail Auto Aftermarket Heavy truck 13 Products designed for high performance, extended equipment life and enhanced productivity Wide range of bearings, hub assemblies and related products such as grease and specialty kits
Mobile Industries Products: Premium bearings, fuel-efficient bearings, lubricants and seals Applications: Automotive equipment: passenger cars and light, medium and heavy-duty trucks Rail equipment: freight and passenger cars, high-speed rail systems Mining equipment: draglines, coal shovels, longwall shearers, haul trucks Agricultural equipment: tractors and combines Construction equipment: wheel, backhoe loaders 14 Mobile Industries
How We Serve Mobile Customers Customer: Rail Polska Timken product: TracGlide, a top-of-rail friction management system that dispenses thin liquid to top of rail as locomotive moves across tracks Customer s success: Installed on M62 six-axle locomotives to increase productivity and lower energy consumption 15
Process Industries Bearings and Power Transmission Group Process Industries Heavy Industries Industrial Processes Gear Drives Energy Industrial Distribution 16 Products that increase uptime and keep equipment running with maximum efficiency Bearings, lubricants, seals, condition monitoring equipment and a range of repair and reliability services
Process Industries Products: Full line of industrial bearings and assemblies, seals, lubricants, component and bearing repairs, condition monitoring, reliability services Applications: 17 Cement crushers, grinding mills Rolling mills, continuous casters Wind energy turbines Coal conveyors, pulverizers Paper mills and processing equipment Planetary gear drives Pumps, compressors Process Industries
How We Serve Process Industries Customers Customer: Major Korean manufacturer of wind turbines Timken product: Two-row, ultra-large bore (ULB) tapered roller bearings produced in newly installed capacity Customer s success: Long-term agreement will provide better turbine performance for customers and reliable supply of bearings 18
Aerospace and Defense Bearings and Power Transmission Group Aerospace and Defense Defense Commercial General Aviation Positioning Control Health 19 Aerospace life-cycle support with turbine engine components, gears and helicopter transmissions, bearing/part reconditioning and extensive offering of PMA components Organ assist, powered surgical and imaging solutions Precision bearings for machine tool, guidance and spaceflight Encoders and motion control sensor systems
Aerospace and Defense Products: Transmissions, engine components, replacement parts, MRO services, encoders and sensors, health and positioning control products Applications: Gas turbine engines, gearboxes, auxiliary power units, helicopter transmissions and rotor heads, landing gear, instrumentation, guidance systems Diagnostic imaging, medical devices Machine tools Motion control systems 20 Aerospace and Defense
How We Serve Aerospace Customers Customer: Erickson Air Crane Timken products: Helicopter bearings, housings and assemblies Customer s success: Timken precision components and assemblies keep helicopters in top condition for important missions 21
Steel Group High-quality alloy steels and steel products Expert knowledge of metallurgy allows us to tailor every production heat to customers specifications Differentiated steel solutions for industrial, mobile on highway, and oil and gas applications Capabilities to help customers consolidate their supply chains 22 Steel Group
Steel Group Steel Group Oil & Gas Heavyweight Drill Pipe Drill Bits Drill Collars Mud Motors Tool Joints Supply Chain Management Value-Added Machining Steel Group Mobile On Highway Passenger Car Light Truck Medium/Heavy Truck 23
Steel Group Steel Group Industrial Agriculture Bearing Construction Equipment Distribution Industrial Machinery Mining Power Transmission Rail Wind Energy 24
Steel Group Products: 450 grades of carbon and alloy steels Special bar quality steel Seamless mechanical steel tubing Well-boring and finishing products Precision steel components Applications: Bearings Drill bits, collars Heavyweight drill pipes Axles, gears, wind turbine gearboxes Connecting rods, crankshafts, cylinder liners, fuel injectors Bushings and forgings 25 Steel Group
How We Serve Steel Customers Customer: Smith Technologies of Houston, Texas Timken product: Specialized grades of Timken alloy steel forging bar Customer s success: Two-cone rock bit fashioned from Timken steel set three world records for distance 26
Timken Product Portfolio Our portfolio ranges from bearings, A wide range of tapered, cylindrical, spherical and precision ball bearings To around the bearing products Seals, condition-monitoring systems, lubricants and lubricators 27
Timken Product Portfolio To power transmission components and systems To steel solutions. 28
Timken Services Bearing repair and maintenance programs for industrial and rail customers Aerospace engine repair and overhaul services Reliability and diagnostic testing Condition monitoring services 29 Our Services
How Our Services Help Customers Customer: Energy storage company Timken product: In-depth vibration analysis on bearings throughout large conveyor system Customer s success: Saved hundreds of thousands of dollars by timely replacement of bearings that tests showed were nearing failure 30
2009 Accomplishments Generated record cash flow Leveraged redesign of systems and business processes to better manage inventory Continued to transform business portfolio to support long-term profitable growth Strengthened capability to supply Timken to industrial and energy customers in Asia 31 steel