T HE T IMKEN C OMPANY Investor Presentation M ARCH 2014 F ORWARD -L - PowerPoint PPT Presentation

T HE T IMKEN C OMPANY Investor Presentation M ARCH 2014

F ORWARD -L OOKING S TATEMENTS S AFE H ARBOR AND N ON -GAAP F INANCIAL I NFORMATION Certain statements in this presentation (including statements regarding the company's forecasts, 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 expectations regarding each company's future financial performance, plans for executing the spinoff, the taxable nature of the spinoff, future prospects of the companies as independent companies, revenue and market growth and similar statements, including the information in the sections titled, “Overview of Planned Separation”, “Steel Separation Update” and “Cost Reduction Initiatives” 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: each company's ability to respond to the changes in its end markets that could affect demand for the company's products; unanticipated changes in business relationships with customers or their purchases from each company; changes in the financial health of each company's customers, which may have an impact on each company's revenues, earnings and impairment charges; fluctuations in raw material and energy costs and their impact on the operation of each company's surcharge mechanisms; the impact of each company's last-in, first-out accounting; weakness in global or regional economic conditions and financial markets; changes in the expected costs associated with product warranty claims; the ability to achieve satisfactory operating results in the integration of acquired companies; the impact on operations of general economic conditions; higher or lower raw material and energy costs; fluctuations in customer demand; the impact on each company’s pension obligations due to changes in interest rates or investment performance; each company’s ability to achieve the benefits of announced programs, initiatives, and capital investments; each company’s ability to fund its pension plans; the timing and amount of any additional repurchases of the company’s common shares; the timing and amount of dividends on the company’s common shares; changes to the actual amount of one-time spinoff costs compared to the company’s estimate; the taxable nature of the spinoff; and the company’s ability to successfully complete the spinoff. 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, 2013, 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. A reconciliation of those measures to the most directly comparable GAAP equivalent is provided in the Appendix to this presentation. 2

Strategic Update & Review

T IMKEN O VERVIEW • A global industrial technology leader • Deep knowledge of materials, friction management and mechanical power transmission • Focused on improving the reliability and efficiency of industrial machinery and equipment all around the world • High-performance steel, bearings and related mechanical components support diversified markets worldwide • Bearings • Gearboxes • Specialty steel bars & tubes • Engineered chain • Transmission components • Related products & services • Established in 1899 and headquartered in Canton, Ohio • 2013 sales: $4.3B • Global footprint with operations in 28 countries comprising 19,000 associates 4

T IMKEN S TRATEGY TO D ELIVER S HAREHOLDER V ALUE Using our know ledge of m etallurgy, friction m anagem ent and m echanical pow er transm ission to create unique solutions used in dem anding applications. Offering a broad array of m echanical pow er transm ission com ponents, high-perform ance steel and related solutions CREATE and services. UNPARALLELED VALUE Delivering exceptional results w ith a passion for superior execution. Extending our know ledge, products, services and channels to m eet custom er needs, w herever they are in the w orld . 5

A M ULTI -F ACETED T RANSFORMATION • Markets • Geographies • Products • Performance 6

G EOGRAPHIC & E ND -M ARKET D IVERSIFICATION Geographic Sales End-Market Sector Mix RoW I ndustrial Afterm arket 18% Europe 4% I ndustrial Machinery 17% 12% Light Truck 12% Asia Passenger Car 10% Pacific Energy 9% 11% Autom otive Aerospace & Defense 7% I ndustrial Rail 7% Latin Am erica On-Highw ay Afterm arket 6% 6% Agriculture 4% Heavy Truck 4% U.S. Mining 3% 67% Construction 2% Other 3% Portfolio Diversification • Broad-based end markets and customers • Increased sales from demanding applications • Expanded channels into aftermarket; represents nearly 30% of 2013 global sales • Emerging markets: a source of growth with 10% 10-Year CAGR Note: Based on 2013 sales of $4.3 billion 7

P RODUCT L INE E XPANSION & D IVERSIFICATION Bearings Specialty Steels Pow er Transm ission Related Products Services 8

N EW A CQUISITIONS , N EW C APABILITIES Differentiated perform ance • I ndustrial focus • Strong afterm arket • Supply chain synergy Sales: $ 3 0 M Sales: $ 1 0 0 M Product Offering Sales: $ 1 3 M Product Offering Critical motor and Product Offering Engineered chains Sales: $ 3 1 M generator services, Manufacturing and augers Product Offering and up-tower wind and installation of Gearbox service Sales: $ 1 7 M maintenance lubrication delivery and repair, open Product Offering and repair systems and related gearing, large Electric motor components Sales: $ 85M fabrication, repair and field Product Offering machining and field technical Engineered gear technical services services drive repair and manufacture July 1 , 2 0 1 1 Decem ber 3 1 , 2 0 1 2 May 1 3 , 2 0 1 3 October 1 , 2 0 1 1 March 13, 2013 April 1 2 , 2 0 1 3 Growth Synergies • Capture lifetime of revenue opportunity • Leverage distribution channel • Opportunities for cross-selling and development of product lines • Global expansion Note: Sales for Philadelphia Gear, Drives and Wazee Companies reflect last 12-month sales at time of purchase. Interlube, Smith Services, and Standard Machine sales reflect full-year 2012. ` 9

O UR B USINESS T ODAY 2 0 1 3 Total Sales Sales: $ 1 .5 B $ 4 .3 B Transformed portfolio, more aftermarket focus Mobile I ndustries 3 4 % Sales: $ 3 3 0 M Sales: $ 1 .4 B Aerospace Steel Diversified into 8 % High-performance, 3 0 % Transmissions and customized alloy steels Aftermarket Process I ndustries 2 8 % Sales: $ 1 .2 B Global growth beyond bearings, diversified, strong aftermarket Note: Based on 2013 financial results. Steel segment sales figure noted above includes $75M of inter-segment sales. 10

M OBILE I NDUSTRIES Segm ent Overview 2013 Financial Performance • Bearings, power transmission ($ Millions) components & related products/ services $1,475 Sales • Customers: OEM and aftermarket $165 EBIT distributors EBIT Margin 11.2% • Continued portfolio shift toward higher growth, higher margin markets 2 0 1 3 Sector Profile Heavy Truck 9 % Off- Highw ay Passenger 2 7 % Car 1 0 % On- Highw ay Aft Mkt 1 7 % Rail 1 9 % Light Truck 1 8 % 11

P ROCESS I NDUSTRIES Segm ent Overview 2013 Financial Performance • Precision-engineered bearings and ($ Millions) related mechanical components and services for diverse industrial $1,236 Sales market sectors • Diversified global customer base $202 EBIT and product portfolio EBIT Margin 16.3% • Consistent, profitable business • Growing market share in spherical & cylindrical roller bearings, housed units, other bearings & services 2 0 1 3 Sector Profile Service 1 6 % After Market 6 1 % Metals 6 % Machinery 6 % Energy 6 % Gear Drives 4 % I nfrastructure 1 % 12

A EROSPACE Segm ent Overview 2013 Financial Performance • Flight critical components and ($ Millions) services for fixed-wing and rotorcraft applications $330 Sales • Strong aftermarket channel $27 • Precision bearings, assemblies, EBIT encoders, sensors for critical EBIT Margin 8.1% motion market sector • Health and motion control 2 0 1 3 Sector Profile Motion Control 1 1 % Defense 5 0 % Civil 3 9 % 13