2015 ANNUAL REPORT AND FORM 10-K THE SEED HAS BEEN PLANTED LSW® MAKES EVERY PIECE OF EQUIPMENT RUN BETTER TO THE SHAREHOLDERS OF TITAN INTERNATIONAL, INC.: The markets served by Titan International, Inc. (Titan) are cyclical in nature — and in times of cyclical decline, we focus on making a positive impact to the factors within our control. Such was the case with 2015; despite the challenging conditions, the impact we’ve been able to make has been significant. The construction and mining segments, as well as the production levels among our major OEM customers, have been slow to recover. Simultaneously, agriculture — especially in North America — experienced a particularly challenging year due to continued factors affecting farm profitability such as falling commodity prices and rising input costs. These challenging conditions ultimately translated to a 20 to 30 percent reduction in production levels of many of our major OEM customers — the hardest hit product categories being the “big iron” machines (150+ horsepower), which offer the greatest profit margin for Titan. Globally, a number of external factors including the strength of the U.S. dollar continue to negatively impact both our profitability and our sales. Despite the economic climate, 2015 was a productive year for Titan. By focusing on factors within our control, we made significant strides, globally, in gaining efficiencies and creating opportunities for future expansion and market share “When the markets gain. These cyclical declines are exactly that — cyclical. When the markets recover, recover, as they as they always do, we are better positioned than ever to capitalize on our long list of competitive advantages and gain global market share over the competition. In always do, we are 2015, we’ve prospered by focusing on four key areas — reducing costs, improving better positioned than processes, leveraging innovations and creating growth opportunities. ever to capitalize.” COST REDUCTIONS AND PROCESS IMPROVEMENTS In times of decreased revenues, it goes without saying that cost reductions are a necessary action toward a healthier bottom line. While we’ve had to make some difficult decisions to adjust workforce, we’ve also put a heavy emphasis on looking at creative ways to reduce costs and gain efficiencies beyond simply reducing headcount. We’ve implemented a new business improvement framework as well as a “One Titan” mentality that leverages our core competencies and encourages strong collaboration across our global footprint to win more business. It will undoubtedly pay off. Our procurement process has improved dramatically through centralization of our supply chain organization. We’ve achieved net material cost reductions across the board — from natural and synthetic rubbers to carbon black, fabric, chemicals and steel. We’ve done so without sacrificing quality. In fact, we’ve improved quality dramatically. In our North America tire division, we’ve been able to significantly reduce both warranty claims and scrap, leading to a $12.3 million reduction in cost of quality in 2015 versus 2014. These same initiatives are also being carried out across the globe. In the United States, we transferred our master batch process to our Union City, Tennessee, facility which ensures consistency and high quality, regardless of where the tire is ultimately produced. In Brazil, we discontinued the practice of selling compound to Goodyear for them to produce treated fabrics that we then purchased back from them. We’ve taken this process in house; which eliminated some sales revenues in the short term, but has had a very positive impact to our profitability. In Italy, we’ve consolidated our wheel plants and improved our forging processes at our undercarriage plants; which have reduced costs, improved efficiencies and reduced lead times. In Spain, we’ve invested in a new mix molding line that drastically improves efficiency and reduces costs. In Brazil, we’ve made plant improvements that will result in annual savings in excess of $800,000. In Russia, we’ve greatly improved our facilities and have implemented a new piece-work incentive system that has reduced labor costs by 40 percent for every pound of material produced. Our Russian labor productivity has doubled versus 2014, and our quality has improved, “Our unique position reducing scrap by almost 4 percent. Overall these improvements in Russia have led to as a complete solutions cost savings of nearly $6 million in 2015. Our investments in profitability didn’t stop provider allows us at just plant and process improvements; we continued to invest in opportunities and product innovations that will drive revenues in ways our competitors can’t. to innovate in ways others can’t.” INNOVATION AND GROWTH OPPORTUNITIES This year marked one of the most significant company milestones in our history. In November, we finalized an expanded licensing agreement with Goodyear Tire & Rubber Company which opens up the opportunity for us to distribute and sell Goodyear Farm Tires in 126 additional countries throughout Europe, the Middle East, Africa, Russia and numerous other Commonwealth States. We now also have the rights to manufacture Goodyear Farm Tires in certain licensed territories outside the European Union. What this effectively does, is it allows Titan to bring tires into a great deal of the markets in which we already have an incredibly strong presence and distribution network on the wheel side. This, in essence, is what makes Titan different than any other company in the world — our ability to be a complete solutions provider for wheels, tires and undercarriages. It’s what has made us so successful in North America, and now we have that ability globally. That’s what One Titan is all about — leveraging our unique mix of capabilities to serve our customers better than any other company in the world. Our unique position as a complete solutions provider allows us to innovate in ways others can’t — and there’s no better example of that than our Low Sidewall (LSW®) Technology, which pairs industry-unique wheel sizes with lower-sidewall tires to match. Nobody else can do that. Field-testing results and customer feedback over the last five years have continued to show that LSW outperforms conventional farm tires. Based on the success of LSW in recent years, we undertook a significant product line expansion in 2015, introducing a variety of new sizes into the North American ag market, including some of the most common row-crop sizes. These additions open up a large percentage of the ag market that didn’t previously have a LSW size available. Our OEM customers have taken notice of the end users’ desire for better offerings and are now listing LSW sizes as options on 2015 and 2016 equipment. Thus far, the take rate for LSW is very promising. In addition, independent research studies have revealed that both awareness levels and likelihood to purchase LSW continue to rise in the United States. We have taken a two-pronged approach of national marketing efforts and local, on-farm, grassroots efforts involving our industry-unique field tech team — The Grizz Squad. Based on the success of this model, we are already testing LSW sizes on large farms throughout Brazil. We also expanded the Grizz Squad into Brazil and are preparing tooling in our São Paulo plant to begin producing LSW tires in 2016. Our innovation and competitive advantages are not limited to the Americas. In Europe, our patented pinned Waffle Wheel and single-piece wheel designs are garnering a foothold in certain areas of the agricultural and construction markets, boasting performance advantages that cannot be matched by any other company in the world. Our undercarriage business has expanded significantly with an increased focus on aftermarket products and technologies. Meanwhile, we’re nearing completion on our Titan Tire Reclamation Corporation facility, which will allow us to recycle and/or resell oil, carbon black and steel — something entirely unique to the industry, which boasts both enormous cost savings and sales potential for us. 2015 ANNUAL REPORT 3 LOOKING AHEAD There’s no doubt that while the markets may be stagnant, our approach has been the farthest thing from stagnant. We have spent 2015 setting the stage for strategic growth and increased profitability, and as we look ahead to 2016 and beyond, opportunity abounds. We will reintroduce Goodyear Farm Tires to a global audience for which the brand name already has significant equity. We will capitalize on our industry-unique ability to deliver complete solutions through a strong global network. Finally, we will aggressively attack both the aftermarket and OEM businesses with service and product innovations that cannot be matched by our competitors. Regardless of our end-market conditions in 2016, we will move forward as “One Titan” making a positive impact on the factors we can control. MAURICE (MORRY) M. TAYLOR, JR. PAUL G. REITZ CHAIRMAN AND CEO PRESIDENT TITAN INTERNATIONAL: AT A GLANCE BY THE NUMBERS 6,000+ 85 44 EMPLOYEES, GLOBALLY COUNTRIES IN WHICH TITAN PRODUCTION / DISTRIBUTION SOLD PRODUCTS IN 2015 FACILITIES, GLOBALLY TITAN INTERNATIONAL: AT A GLANCE 2015 HIGHLIGHTS — OPPORTUNITIES AND EFFICIENCIES GAINED $12.3 MILLION $817,000 200% Reduction in cost of quality (scrap/warranty claims), from Anticipated annual savings from plant Improvement in labor productivity 2014 in North American Tire Division improvements in Brazil in Russia 40+ 70% 126 Number of new dealer locations Percentage of North American tractors