1. The Timken Company 2006 Profile
Where You Turn
The Timken Company
2006 Profile
Greet those in attendance.
Make introductions.
Thank you for inviting me to talk about The Timken Company. As you are about to find out, Timken helps keep the world turning by using innovative ways to make customers’ products run smoother, faster and more efficiently. Our highly-engineered bearings, alloy steels and related products and services turn up everywhere – on land, sea and space. In fact, we’re WHERE YOU TURN – whether you’re a manufacturer, distributor, end-user or consumer – for better performance.
*Speaker’s Note: You can customize a couple examples here based on the audience:
Students/General  YOU  Consumers  Use TKR products in cars, appliances, etc.
Engineers  YOU Technical User  Use TKR R&D, engineering capabilities, etc.
Aftermarket  YOU  Distributor  Rely on TKR quality, supply chain, etc.
Original Equipment  YOU  Manufacturing  Full range of TKR solutions to help your products perform, etc.

2. The Timken Company Industrial technology company
A leading provider of friction management and power transmission solutions to diverse markets, including:
Aerospace, Mining, Energy, Rail, Construction, Truck, Automotive and Distribution
$5.2 billion in sales in 2005
27,000 associates in 27 countries
Global network of 13 technology centers
We are an industrial technology company providing customers all around the world with friction management and power transmission solutions. We serve a variety of markets, from aerospace and automotive to energy and construction.
With sales of $5.2 billion and operations in 27 countries, we have 27,000 associates worldwide who work to maintain our competitive edge and exceed customer expectations.
We also have 13 technology centers throughout the world that are focused on delivering value through new product and process innovation and applications development.
Technology centers in:
Canton, OH, USA
Lebanon, NH, USA
Keene, NH, USA
Torrington, CT, USA
Watertown, CT, USA
Norcross, GA, USA
Latrobe, PA, USA
Bangalore, India
Colmar, France
Vierzon, France
Brno, Czech Republic
Ploiesti, Romania

3. Our History Founded in St. Louis in 1899 by Henry Timken
Relocated to Canton, Ohio in 1901
Invented the first tapered roller bearing
Began steel production in 1917
Traded on the NYSE since 1922
We have a 107-year history of adapting to changing customer needs and market conditions. Our company was started in St. Louis, Missouri in 1899 by Henry Timken, a carriage maker who invented the tapered roller bearing. In doing so, Henry created customer value for generations to come by solving a critical technical issue: reducing friction in order to improve productivity. In the last part of the 19th century, Henry was dealing with friction management issues on horse-drawn carriages and early automobiles. While we now deal with much more advanced applications, his early work in antifriction solutions paved the way for the technologies we develop today.
Our early steel production helped us evolve into a leading specialty steel producer. The Timken Company began producing its own steel during WWI, when most steel was reserved for wartime manufacturing of military equipment. Originally started to give Timken a continuous supply of steel for bearing manufacturing, our steel operation now sells to customers worldwide, with more than 90 % of our steel going to customers other than Timken.
In 2003, with Timken’s acquisition of The Torrington Company, we substantially broadened our core products and technologies and became a much larger company.

4. 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 success over the years has been due to the success of our customers, and that is one reason why they are at the center of everything we do. Today, they are at the core of our company’s vision. Our vision is to improve customer performance all around the world by applying our knowledge of friction management and power transmission. In short, it’s all about innovation.
Our vision is more inclusive than being a worldwide leader in bearings and steel. We are still that. But we are much more. We are expanding our brand beyond bearings and steel. We’re a friction management provider. A technology provider. A solutions provider. Everywhere wheels, shafts and anything that moves, turns, we’re there.
We are dedicated: Our associates work together to achieve our vision globally.
To improving our customers’ performance: We put both our customers’ product performance and business performance first. This strategy has a positive impact on our own company’s performance.
By applying our knowledge of friction management and power transmission: We are technical experts in managing friction and transmitting power.
To deliver unparalleled value and innovation: We not only strive to develop the best new technologies, but we offer our customers solutions that create value for them over the long-term.
All around the world. We are global, and we serve customers no matter where in the world they are.

5. Where Vision Takes Us Europe $820m Sales 24 Facilities
2 Joint ventures
North America
$3,850m Sales
60 Facilities
4 Joint ventures
Asia Pacific $290m Sales 8 Facilities
1 Joint venture
And when we say “all over the world,” we really mean it.
Our operations include:
13 global technology centers, where engineers work to create new innovations and technical solutions that change the way people work and live.
64 manufacturing plants (53 bearing and 11 steel) that produce quality products.
Nearly 100 (92) sales offices that serve customers in different regions of the world.
23 distribution centers that warehouse and ship orders to customers.
9 strategic joint ventures in 5 countries
Speaker’s Note:
Joint Ventures Include:
Advanced Green Components, LLC – Winchester, Ky., U.S.A.
Bardella Timken International Services – São Paulo, Brazil
CoLinx, LLC – Greenville, S.C., U.S.A. (PTplace.com)
Endorsia.com International AB – Gothenberg, Sweden
Friction Management Services, LLC – West Chicago, Ill., U.S.A.
Industria Cuscinetti S.p.A (ICSA) – Turin, Italy
International Components Supply Limitada - São Paulo, Brazil
S.E. SETCO Service Co. – Norcross, Ga., U.S.A.
Timken-NSK Bearings (Suzhou) Co., Ltd. – Shanghai, China
Latin America $150m Sales 5 Facilities
2 Joint ventures
Note: Excludes sales offices.

6. Our Customers
We’ve used our global presence and innovative spirit to constantly expand the capabilities we offer to our customers. Working with our customers’ product design engineers, we develop friction management and power transmission solutions that can include everything from vibration analysis to surface finishes and precision steel components. Here is just a sampling of our long list of customers worldwide.

7. Market Scope
$500 billion friction management and power transmission market
$500 billion
$30 billion anti-friction bearing and alloy steel market
#3 Global Bearing
#1 Tapered Roller Bearing
#2 Needle Roller Bearing
#1 Seamless Mechanical Tubing
#1 Bearing Steel
To better understand Timken and its opportunity for growth, let’s take a look at global markets. This diagram illustrates the relative size of global markets for tapered roller bearings and bearing steel ($5B); antifriction bearings & alloy steel ($30B); and power transmission and friction management ($500B).
Timken is the third largest bearing manufacturer in the world (in sales), with major competitors in Europe and Japan.
Timken is # 1 or # 2 in key product areas:
In Bearings, Timken is:
# 1 in North American bearing sales
# 1 global tapered bearing company
# 2 globally for needle bearings (behind INA-FAG)
# 2 global industrial bearing aftermarket sales (behind SKF)
In Steel, Timken is:
Largest manufacturer of seamless mechanical steel tubing
Largest manufacturer of steel used in bearing production (Timken sells steel to other bearing manufacturers)
By applying our in-depth knowledge of friction management and power transmission, we have more opportunities for growth in the $500B market for friction management and power transmission.
$30 billion $5
billion
$5 billion tapered roller bearing and bearing steel market
#1 Tapered Roller Bearing
#1 Bearing Steel
Source: Company estimates, Freedonia Group and external financial reports.

8. Our Strategy Innovation Expansion Execution Products
Distribution and services
Expansion
Grow globally
Grow distribution and services
Acquire complementary products for industrial markets
Execution
Leverage synergies across Company
Continuously drive improvement
Our company strategy is directly linked to our Vision. In order to create value for customers all over the world, we focus on:
Innovation in products, processes, distribution and services – by applying our knowledge of friction management and power transmission. Timken innovations are developed to help customers improve the performance of their products and their companies.
Expansion of our markets globally with special focus on aftermarket opportunities and services. We are building our competencies around our core businesses by acquiring or introducing products and services that complement our existing lines.
Execution of plans that ensures we leverage the synergies between our businesses and continuously drive improvements throughout the company. .

9. Our 2005 Accomplishments Posted record sales and net income
Earned a spot on the S&P MidCap 400 list
Recognized as a “Midcap Star” on Forbes 100 list of rising midcap stocks
Achieved record productivity and safety performance
Increased bearing capacity
Expanded in emerging markets, particularly China
Introduced new products and services
Attained position as #1 aerospace bearing repair supplier
Honored with quality and supplier awards
In 2005, we were recognized by the investment community, earning a spot on the S&P MidCap 400 list, which is comprised of 400 U.S. companies and is selected based upon mid-range market capitalization, liquidity and industry representation. And, Forbes recognized us as a “Midcap Star” on their Forbes 100 list of rising midcap stocks.
We posted record sales in 2005 of $5.2 billion, up 15% from the prior year, and record net income of $261.5 million, nearly double the prior year. We also set records for both productivity (measured by sales per associate) and safety performance, with lost-time accidents at an all-time low.
Most important are the achievements that directly impact our ability to serve customers. In 2005, we:
Increased capacity in the U.S., Romania and China for bearing production.
Expanded in Asia, opening new offices in Shanghai and Chengdu and opening the China Logistics Center (Shanghai.) We also relocated industrial bearing manufacturing in Wuxi, China to a newer, much-larger facility.
Attained position as #1 aerospace bearing repair supplier through an acquisition.
Added new friction management products, including industrial seals, machine tools and more condition monitoring systems and programs.
Received customer awards, including GM’s Supplier of the Year Award and a Quality Award from Renault, one of only three suppliers to receive it.

10. 2005 Sales by Business Group
Automotive
Group
$1.6 Billion
Timken is organized into three business groups: Industrial, Automotive and Steel. The Industrial Group accounts for 37% of company sales, Automotive accounts for 33 % and Steel accounts for 30%.
Industrial
Group
$1.9 Billion
Steel Group
$1.7 Billion
$5.2 Billion

11. Industrial Group Sales by Market
Aerospace & Defense 8%
Consumer/Health & Positioning Control 8%
Power Transmission
26%
Our Industrial Group provides one of the broadest lines of industrial bearing products and services in the world and it covers the largest variety of markets, including… [*NOTE: Industrial aftermarket is included in the market segments]
Power transmission, which includes gear drives, pumps, compressors, textile and food processing and material conveyors.
Off-highway, this segment covers agriculture, construction, hydraulics, mining, industrial trucks and power drives
Heavy Industry, which includes metals, aggregate, cement, oilfield, power generation, wind energy and pulp and paper
Automotive Aftermarket
Rail, which provides bearing products, reconditioning and friction management services to freight, passenger, transit and locomotive applications
Consumer/Health & Position Control, which includes recreational vehicles, machine tools, health care, lawn and garden, household appliances
Aerospace and Defense, provides parts and services to OEM and aftermarket customers within avaiation and defense industries in market segments such as engines, gearboxes, accessory power systems, landing gear, instruments & weapons systems.
We serve both OEM and Distribution / AM channels which are split roughly 50/50. We continue to grow globally across the group and invest for the future by:
Growing our capabilities through strategic acquisitions and alliances (such as Bii, an aerospace service company)
Growing our aftermarket product and service offerings.
Growing our presence in Asia by building our manufacturing, distribution and sales presence there, particularly in China.
Adding capacity at plants throughout the world to meet strong customer demand.
Rail
11%
Automotive Aftermarket
11%
Off-Highway
22%
Heavy Industry
14%
2005 Sales: $1,927 Million

12. Automotive Group Sales by Market
Heavy &
Medium Truck
19%
Our Automotive Group serves OE manufacturers all around the world who produce a variety of vehicles, including passenger cars, light trucks and SUVs, medium- to heavy-duty trucks and trailers.
Timken is involved in 9 of the Top 10 selling U.S. platforms. And in Europe, we provide customers like Renault, Saab and Volkswagen with friction management and power transmission solutions, ranging from bearings to engine components to steering columns. In 2005, we were awarded transmission programs for three of largest Japanese automotive companies.
We are focused on aligning our automotive design centers with our customers needs. In 2005 we began construction of a new Powertrain & Innovation Center of Expertise at Clemson University’s International Center for Automotive Research, which is scheduled to open in summer 2006.
Our Automotive Group is dedicated to improving performance through:
Pricing
Aligning automotive design centers with customer needs.
Managing the automotive product portfolio to drive customer performance while improving profitability of the Automotive group.
Restructuring operations.
Light Truck
50%
Passenger
Car
31%
2005 Sales: $1,661 Million

13. Steel Group Sales by Market
Energy 8%
Automotive
21%
Aerospace 9%
Our Steel Group manufactures high-end alloy steel bars, tubes and specialty steel used in a variety of markets, including energy, aerospace, tooling, automotive and industrial. We differentiate Timken steel products not only by the quality of steel but by the technical services we provide and our applications knowledge.
In 2005, our Steel Group:
Achieved record shipments of alloy and specialty steel.
Achieved record productivity in alloy steel production.
Established an alloy steel marketing group and continued to expand international sales, including sales of steel in China.
Tool Steels
11%
Bearing
21%
Distribution
14%
Industrial – 16%
2005 Sales: $1,760 Million

14. Precision Manufacturing
Our Capabilities
Friction Management
Power Transmission
Our corporate capabilities in technology, materials science, manufacturing and distribution enable us to seize opportunities to improve customer performance and grow our business.
Materials Science
Precision Manufacturing
Global Distribution

15. Friction Management & Power Transmission
Our technical knowledge in friction management and power transmission gives us a leading edge in the latest product and service innovations.

16. Turn to Us for Innovation
We’ve grown beyond traditional bearing and steel products to include:
Condition monitoring products, like StatusCheck. These products help industrial maintenance personnel monitor the performance of the bearings and provide warnings before unexpected downtime can occur…reducing unplanned system maintenance.
Sensor-equipped wheel hubs for light trucks and SUVs. Our hub innovations reduce weight, space and system costs.
We’ve developed surface enhancement technologies that reduce wear, fatigue and frictional performance in power transmission applications.
We’ve expanded our aerospace line with aerospace gears and components that are competitively priced and deliver proven performance.
condition monitoring solutions
sensorized wheel hub bearings
engineered
surfaces
aerospace accessories & gear boxes
Added
customer
value
Added
customer
value
Added
customer
value
Added
customer
value
Maximize uptime, safety and profitability in heavy industry applications
Integrated package reduces weight, space and system costs for automotive wheel-end applications
Surface enhancement technologies that improve wear, fatigue and frictional performance in power transmission applications
Replacement components deliver proven performance, availability and competitive pricing

17. Turn to Us for a Full Industrial Line
Sensor products
Grease and single-point lubricators
Timken® seals
Bearing, chock and roll repair and refurbishing services
Online services, such as the Timken Store at PTplace.com and Endorsia.com
Timken offers one of the broadest ranges of friction management products and services in the world. In addition to a wide range of bearings, we offer a full line of sensor products, grease and single point lubricators, and seals…as well as other related components, such as maintenance tools and condition monitoring technologies.
Our services also include industrial repair and refurbishing services for bearings, chocks, rolls and aerospace engines.
We continue to grow our on-line presence with sites like the Timken Store at PTplace.com and endorsia.com.
A growing number of distributors are using our Web-based resources, such as the Timken Store at PTplace.

18. Turn to Us for a Full Automotive Line
Integrated wheel ends
Fuel-efficient products
Engine/transmission products
Steering solutions
Sensor-equipped products
Our involvement in the transportation industry extends back to Henry Timken’s first manufacturing experience…making horse-drawn carriages. The invention of the tapered roller bearing began a century-long progression of continued product innovation aimed at helping vehicles of all types travel with less friction, better reliability and improved performance.
As fuel costs have risen in recent times, we’ve contributing to improved fuel efficiency through engine and steering products that go beyond bearings. For example, one of our inventions is an engine component called the lobe switching finger follower, which has the potential to contribute up to a 7% increase in fuel economy when paired with other engine enhancements.
We’ve also developed enabling technologies for electric power assisted steering (EPAS) systems, which are projected to become the dominant steering control technology in Europe and Japan by EPAS reduces engine drag and vehicle weight, contributing to fuel efficiency. Timken’s patented Application Specific Integrated Circuit (ASIC) helps EPAS work effectively, providing the vehicle driver with superior steering input.
Timken’s proprietary automotive technologies are increasing engine performance and improving fuel-efficiency .

19. Turn to Us for New Products & Services
Expanded European maintenance tool line into North America
Added more solutions to our condition monitoring line
Enhanced aerospace inspection and reconditioning services
Our technical know-how, combined with our ability to understand the needs of our markets, also gives us the opportunity to develop new products and services. And, our reputation has allowed us to partner with other technical experts to add even more options to the Timken portfolio. In 2005, we continued this tradition by:
Expanding our portfolio by adding new friction management solutions to our offering. For example, we expanded our maintenance tool line from Europe into the U.S. and Canada, bringing a whole new group of customers Timken products like induction heaters, hydraulic pullers and impact fitting tools.
Adding to our condition monitoring line with a machine evaluator, new monitoring devices and online systems to measure vibration, temperature, etc.
Enhancing aerospace services with our acquisition of Bearing Inspection, Inc., which makes us a leader in aerospace bearing inspection and reconditioning services.
Essentially, we are continuing to create value to our customers as a “one-stop” shop for their friction management and power transmission needs.
Our StatusCheckTM condition monitoring equipment was voted 2005 Product of the Year by Plant Engineering magazine.

20. Turn to Us for New Products & Services
Repair services that help customers extend the life of their products
Capabilities that improve our customers’ supply chain
Our strategy for growth is to capitalize on Timken’s core strength - providing total solutions that improve our customers’ product and business performance. Sometimes that means providing traditional products and services. Other times, it means helping customers through process improvements or new capabilities that create value.
For instance, we’ve entered an alliance with Rolls-Royce to supply them with parts and component repair for their Model 250 helicopter turbo shaft engines.
Our supply chain services are also making a difference. In 2005, we helped a small forging customer in Mexico take a step out of their supply chain by providing them with Timken® steel blanks for their forgings for the automotive industry. Previously, the customer used another steel supplier who would deliver steel tubing, which the customer would then ship back out to another supplier that made them into blanks. Due to our capabilities in producing precision steel components, we were able to save this customer both time and money while enhancing the quality of their forgings.
As you can see from these examples, we take the same care with smaller customers as we do with large, global customers. Everywhere we look, we see opportunities where we can apply our knowledge to make things better and easier.
In 2005, we announced an alliance with
Rolls-Royce Corp. to supply parts and component
repair for their Model 250 helicopter turbo shaft engines.

21. Materials Science
Once we’ve recognized these opportunities, the journey to turning them into profitable solutions that create customer value begins with utilizing our knowledge and capabilities in friction management, power transmission and materials science.

22. Turn Knowledge into Power
Materials science, including:
Alloy steel bars and tubing
Precision steel components
Specialty steel
At our technology facilities, engineers analyze materials to determine which types are best for certain applications, and develop new ones. For instance, Timken® alloy steel is used to manufacture many products that help transmit power, such as bearings; aircraft engine main shafts, landing gear and high-strength fasteners; oil and gas drilling tools and perforating guns; hydraulic cylinders, axles and crankshafts for construction and agriculture applications; and an array of automotive components, including gears, shifter sleeves, crankshafts and constant velocity joint components. Each application has its own requirements for strength and durability, and Timken engineers are able to match the right steel to the right application for high performance.
Our technology and manufacturing experts work together to develop semi-finished and finished precision steel components for powertrain applications such as internal ring gears, sun gears, races, hubs, clutch shafts, axle shafts, CV joint cages and outer race prop shafts.
Timken’s in-depth knowledge of materials science provides a base for applications development and technical services matching materials to applications.

23. Turn Science into Performance
$60 million last year in research, development and testing
13 technology facilities worldwide
Focus on products, materials, processes and emerging technologies
Our technology organization is dedicated to materials science, product innovation and improving performance.
In 2005, Timken spent more than $60 million on research, development and testing.
Timken has 13 technology facilities worldwide that focus on products, materials, processes and emerging technologies that create customer value.
Engineering associates focus on improving materials, processes and technologies to revolutionize the way things move and turn.
Technology centers in:
Canton, OH, USA
Lebanon, NH, USA
Keene, NH, USA
Torrington, CT, USA
Watertown, CT, USA
Norcross, GA, USA
Latrobe, PA, USA
Bangalore, India
Colmar, France
Vierzon, France
Brno, Czech Republic
Ploiesti, Romania
The Timken Company is committed to its global
technology network. The Bangalore, India, technology
facility is one of 13 technology centers worldwide dedicated
to product innovation and improving customer performance.

24. Precision Manufacturing
Because we are a manufacturer ourselves, we have a special ability to understand the processing requirements of our OEM customers. Our manufacturing expertise enables us to design products and processes that can contribute to the performance of our customers manufacturing operations.

25. Global Manufacturing
Spain
England
France
United States
Netherlands
Germany
Canada
Italy
India
Czech Republic
Poland
China
Romania
We continuously improve processes at our plants worldwide. Our global manufacturing network enables us to serve customers all over the world. Our precision manufacturing expertise allows identical products to be made to global standards.
53 bearing plants include: Brazil (2), Canada (2), China (3), Czech Republic (1), England (2), France (4), Germany (1), India (1), Italy (1), Netherlands (1), Poland (1), Romania (1), South Africa (1), Spain (1), U.S.A. (31)
6 JV bearing plants include: 1 – Advanced Green Components: Winchester, Ky. 1 – Bardella Timken: Sao Paulo, Brazil 1 – International Components Supply, Sao Paulo, Brazil 1 – ICSA: Turin, Italy 1 – SETCO: Norcross, Ga. 1 – Timken-NSK: Shanghai, China
11 steel plants include: USA (7), England (1), Brazil (1), France (2)
Brazil
South Africa

26. At Every Turn
Made process improvements in bearing manufacturing operations
Opened new industrial operations in Wuxi, China
Invested in expansions in the U.S., Romania and China
Nowhere are opportunities more abundant than in the world’s emerging markets. As these markets continue to grow and develop their infrastructure, we see a number of opportunities for our company. We think of this as going beyond boundaries as we expand our manufacturing presence in emerging markets and capture new business for traditional Timken product lines. Recently, we’ve:
Made process improvements in our bearing manufacturing operations to improve manufacturing capabilities, quality and customer service.
Opened a new plant in Wuxi, China to supply industrial bearings and other products to industrial customers throughout Asia.
Invested in bearing capacity expansions at plants in Romania, the United States and China.
And in established markets like the U.S., we continue to make improvements that benefit customers as well, such as:
Launched $27 million expansion in Asheboro, N.C. to increase large-bore bearing production by 2007.
The Ploeisti, Romania, plant produces large-bore bearings for many industrial applications.

27. Global Distribution
Once our products are manufactured or acquired, we have a distribution network in place that brings bearings, steel and related technologies to customers all around the world.

28. Distribution and Services
We offer one of the broadest lines of bearings and related components in the world, and we continue to increase our range of products and services. We’re providing a growing number of non-bearing & steel products, such as lubricants, condition monitoring devices and machine maintenance to provide one-stop shopping for friction management solutions.

29. Innovation – Distribution and Services
Our sales to industrial and automotive distributors have more than doubled in over the past three years as we’ve added new products, expanded our global distribution network and improved customer self-service tools, like PTplace and Endorsia.com – joint venture, online marketplaces where customers can learn about new Timken products and services and order them.
In addition to our delivery and customer service, we also provide valuable aftermarket services through our distributor network, including end-user training for industrial maintenance personnel.

30. As you can see, Timken is where customer turn for innovation, quality, value and performance. We have built a solid foundation for growth, we have a commitment to improve performance and we have the drive to take an advantage of the opportunities we are creating.
*Next time you are driving in a car, or you turn on a light switch in your home, think of how Timken is helping customers all over the world – including you – reduce friction and transmit power.
*Speaker’s Note: You can customize the closing and the application examples here here based on the audience (bringing it full circle back to the into):
Students/General  YOU  Consumers  Use TKR products in cars, appliances, etc.
Engineers  YOU Technical User  Use TKR R&D, engineering capabilities, etc.
Aftermarket  YOU  Distributor  Rely on TKR quality, supply chain, etc.
Original Equipment  YOU  Manufacturing  Full range of TKR solutions to help your products perform, etc.