Why Invest

Why Invest

Growing, Market-leading Product Portfolio and Diverse End-market Mix

Timken has purposely grown its engineered bearings and power transmission portfolio to achieve three strategic goals: build on our core bearings business and long-standing innovation power; diversify by adding adjacent product lines; increase our ability to serve the needs of global industry more fully. The results? Our position is stronger than ever with greater scale, profitable growth, and one of the most attractive end-market mixes in the bearings industry, including renewable energy and automation.

*% of total 2020 Company sales

Leader in Renewable Energy with a Focus on Wind and Solar

Renewable energy is now Timken’s single largest market, representing more than 12% of our total sales. Strong underlying market growth, share gains and our competitive advantage — application engineering expertise and innovation power — drive the increase in sales. Today, we are a leading technical partner for major OEM customers worldwide. We continue to make major capital investments in this high-growth market: more than $75 million by early 2022.

Find out more in our 2020 Annual Report

Renewable Energy was 12% of total company sales in 2020

Segment Diversification
Mobile Industries
Process Industries
2008
2020
Product Diversification
Engineered Bearings
Power Transmission Products
2008
2020
Channel Diversification
Original Equipment Manufacturers (OEM)
Distribution/End-Users
2008
2020

Successful Repositioning of the Company to Perform Through Cycles

Since 2008, Timken has transformed into a multi-product line bearings and power transmission provider across mobile and process industries globally. Today, our diverse market mix, strong aftermarket position, improved pricing model, and optimized footprint prepares us to perform better through cycles. In addition, our strong free cash flow allows us to continue to invest through a cycle in organic and inorganic initiatives, all while returning capital to our shareholders.

*% of total 2020 Company sales

Clear Strategy to Deliver Shareholder Value

Our three key tenants:

Driving profitable organic growth

Innovate with our customers to solve their most difficult challenges and generate above-market growth in attractive sectors

Operating with excellence

Drive productivity and efficiency across the enterprise while delivering best-in-class customer service

Deploying capital to deliver shareholder value

Advance our capital allocation framework with the dividend and capital investments in the business as the top priorities, followed by acquisitions and share repurchases. Strategically diversify our product portfolio to leverage growth opportunities and deepen customer and geographic reach through M&A.

Adjusted EBITDA Margin*

Adj. EBITDA margin of nearly 19% in 2020 is significantly higher than the 2016 trough

Growth, price/mix, acquisitions, operational excellence and pension de-risking delivering next level results

Adjusted Earnings per Share*

Adjusted earnings greater than $4/share in 2020 despite the impacts of COVID-19.

Demonstrating the new earnings power of the Company through challenging environments.

Proven Track Record

The results of our successful strategy speak for themselves. In more than a decade, we have continuously achieved our financial performance and delivered value for our shareholders. Organic and inorganic growth have supported the company’s earnings power, and we expect the top line and adjusted EBITDA to continue to grow as we further execute our strategy. We also have expanded adjusted EBITDA margins* by over 400 bps compared to 2016.

Learn more
*Click here for reconciliations of adjusted EBITDA and adjusted EPS to their most directly comparable GAAP financial measures.

Contact

Shareholder Contact

Shareholder Services

Mail Code: WHQ-03
The Timken Company
4500 Mount Pleasant Street NW
North Canton, OH 44720
Phone: (234) 262-4583

Investor Relations Contact

Neil Frohnapple

Director - Investor Relations

Mail Code: WHQ-03
The Timken Company
4500 Mount Pleasant Street NW
North Canton, OH 44720
Phone: (234) 262-2310
Email: neil.frohnapple@timken.com

Transfer Agent

EQ Shareowner Services

P.O. Box 64874
St. Paul MN 55164-0874
Telephone: 800-401-1957
Outside US: 651-450-4064
shareowneronline.com