Timken : 1Q 2024 Earnings Presentation

1Q 2024 Earnings Investor Presentation

April 30, 2024

The Timken Company

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, future financial performance, targets, projected sales, cash flows, liquidity, cost reduction measures and expectations regarding the future financial performance of the company, including the information under the headings, "Initial Organic Growth Outlook - FY 2024 By Market/Sector", "2024 Outlook", "Looking Ahead", "1Q-24 Financial Comparison - Net Income & Diluted EPS", "Cash Flow, Leverage & Capital Allocation", and "Long-Term Financial Goals*" 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 finalization of the Company's financial statements for the first quarter of 2024; the Company's ability to respond to the 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; logistical issues associated with port closures or congestion, delays or increased costs; the impact of changes to the Company's accounting methods; political risks associated with government instability; recent world events that have increased the risks posed by international trade disputes, tariffs, sanctions and hostilities; strained geopolitical relations between countries in which we have significant operations; weakness in global or regional general economic conditions and capital markets (as a result of financial stress affecting the banking system or otherwise); the impact of inflation on employee expenses, shipping costs, raw material costs, energy and fuel prices, and other production costs; the Company's ability to satisfy its obligations under its debt agreements and renew or refinance borrowings on favorable terms in a high interest rate environment; 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, synergies, and expected cashflow generation within expected timeframes or at all; fluctuations in customer demand; the Company's ability to effectively adjust prices for its products in response to changing dynamics; 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, commercial requirements, and Company goals associated with climate change and emissions or other sustainability initiatives; unanticipated litigation, claims, investigations, remediation, or assessments; changes in the global regulatory landscape; restrictions on the use of, or claims or remediation associated with, per- and polyfluoroalkyl substances; the Company's ability to maintain positive relations with unions and works councils; the Company's ability to compete for skilled labor and to attract, retain and develop management, other key employees, and skilled personnel at all levels of the organization; negative impacts to the Company's operations or financial position as a result of pandemics, epidemics, or other public health concerns and associated governmental measures; 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, 2023, 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 financial measures are provided in the Appendix to this presentation.

Overview and Business Update

Rich Kyle

President and

Chief Executive Officer

The Timken Company

Raising 2024 Outlook

• Increased FY revenue outlook by 50bps at midpoint from February
• • Organic outlook improved by 150bps - multiple sectors up, renewable energy down
  • Currency worse by 100bps, now a headwind (-0.5%) for the year; net M&A (+2.5%) unchanged
  • Improved execution and cost-control actions to drive stronger margin performance
  • Higher EPS versus prior guide (up $0.15/share at midpoint) despite higher tax rate
• Continue to integrate recent acquisitions and drive synergies
• Advance strategic initiatives (outgrowth, product vitality, footprint, etc.)

Capital Allocation

• Strong balance sheet at March 31st, with significant FCF generation expected over ROY
• Continue balanced and disciplined approach to capital allocation
• • CapEx at ~4% of sales to support growth and margin enhancement
  • Continued emphasis on M&A to scale in attractive sectors and enhance product portfolio
  • Buyback remains an attractive option as well

Plan for CEO succession in September

Financial

Performance

Phil Fracassa

Executive Vice President

and Chief Financial Officer

The Timken Company