SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 6.875% senior secured notes due 2020 and 5.625% convertible senior subordinated notes are guaranteed by the following 100% owned subsidiaries of the Company: Titan Tire Corporation, Titan Tire Corporation of Bryan, Titan Tire Corporation of Freeport, and Titan Wheel Corporation of Illinois. The note guarantees are full and unconditional, joint and several obligations of the guarantors. The guarantees of the guarantor subsidiaries are subject to release in limited circumstances only upon the occurrence of certain customary conditions. The following condensed consolidating financial statements are presented using the equity method of accounting. Certain sales and marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended June 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	173,334		$	202,733		$	—		$	376,067
Cost of sales	207			141,328			183,479			—			325,014
Gross profit (loss)	(207		)	32,006			19,254			—			51,053
Selling, general and administrative expenses	2,617			16,757			18,474			—			37,848
Research and development expenses	—			805			1,974			—			2,779
Royalty expense	—			1,832			1,063			—			2,895
Income (loss) from operations	(2,824		)	12,612			(2,257		)	—			7,531
Interest expense	(8,094		)	(1		)	(547		)	—			(8,642		)
Intercompany interest income (expense)	248			—			(248		)	—			—
Other income (expense)	(393		)	3			7,296			—			6,906
Income (loss) before income taxes	(11,063		)	12,614			4,244			—			5,795
Provision (benefit) for income taxes	(5,787		)	4,796			2,506			—			1,515
Equity in earnings of subsidiaries	9,556			—			3,535			(13,091		)	—
Net income (loss)	4,280			7,818			5,273			(13,091		)	4,280
Net loss noncontrolling interests	—			—			(2,491		)	—			(2,491		)
Net income (loss) attributable to Titan	$	4,280		$	7,818		$	7,764		$	(13,091	)	$	6,771



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended June 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	244,664		$	279,067		$	—	$	523,731
Cost of sales	303			241,915			260,740			—		502,958
Gross profit (loss)	(303		)	2,749			18,327			—		20,773
Selling, general and administrative expenses	2,388			17,611			22,836			—		42,835
Research and development expenses	72			1,214			2,289			—		3,575
Royalty expense	—			1,926			1,904			—		3,830
Income (loss) from operations	(2,763		)	(18,002		)	(8,702		)	—		(29,467		)
Interest expense	(8,255		)	—			(671		)	—		(8,926		)
Intercompany interest income (expense)	1,618			—			(1,618		)	—		—
Other income (expense)	1,192			103			5,040			—		6,335
Income (loss) before income taxes	(8,208		)	(17,899		)	(5,951		)	—		(32,058		)
Provision (benefit) for income taxes	69			(6,437		)	(799		)	—		(7,167		)
Equity in earnings of subsidiaries	(16,614		)	—			(18,004		)	34,618		—
Net income (loss)	(24,891		)	(11,462		)	(23,156		)	34,618		(24,891		)
Net loss noncontrolling interests	—			—			(4,380		)	—		(4,380		)
Net income (loss) attributable to Titan	$	(24,891	)	$	(11,462	)	$	(18,776	)	$	34,618	$	(20,511	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Six Months Ended June 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	367,307		$	410,819		$	—		$	778,126
Cost of sales	438			309,279			374,562			—			684,279
Gross profit (loss)	(438		)	58,028			36,257			—			93,847
Selling, general and administrative expenses	5,251			32,136			36,135			—			73,522
Research and development expenses	—			1,805			4,060			—			5,865
Royalty expense	—			3,756			2,364			—			6,120
Loss from operations	(5,689		)	20,331			(6,302		)	—			8,340
Interest expense	(16,209		)	(1		)	(1,188		)	—			(17,398		)
Intercompany interest income (expense)	390			—			(390		)	—			—
Other income (expense)	5,004			(376		)	10,561			—			15,189
Income (loss) before income taxes	(16,504		)	19,954			2,681			—			6,131
Provision (benefit) for income taxes	(3,398		)	7,489			(1,180		)	—			2,911
Equity in earnings of subsidiaries	16,326			—			3,372			(19,698		)	—
Net income (loss)	3,220			12,465			7,233			(19,698		)	3,220
Net loss noncontrolling interests	—			—			(3,783		)	—			(3,783		)
Net income (loss) attributable to Titan	$	3,220		$	12,465		$	11,016		$	(19,698	)	$	7,003



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Six Months Ended June 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	508,622		$	554,049		$	—	$	1,062,671
Cost of sales	513			470,154			519,254			—		989,921
Gross profit (loss)	(513		)	38,468			34,795			—		72,750
Selling, general and administrative expenses	4,032			36,601			46,078			—		86,711
Research and development expenses	72			3,367			4,232			—		7,671
Royalty expense	—			3,774			3,797			—		7,571
Income (loss) from operations	(4,617		)	(5,274		)	(19,312		)	—		(29,203		)
Interest expense	(16,517		)	—			(1,668		)	—		(18,185		)
Intercompany interest income (expense)	3,302			—			(3,302		)	—		—
Other income (expense)	1,534			48			5,269			—		6,851
Income (loss) before income taxes	(16,298		)	(5,226		)	(19,013		)	—		(40,537		)
Provision (benefit) for income taxes	(5,971		)	(1,627		)	(2,920		)	—		(10,518		)
Equity in earnings of subsidiaries	(19,692		)	—			(18,881		)	38,573		—
Net income (loss)	(30,019		)	(3,599		)	(34,974		)	38,573		(30,019		)
Net loss noncontrolling interests	—			—			(11,671		)	—		(11,671		)
Net income (loss) attributable to Titan	$	(30,019	)	$	(3,599	)	$	(23,303	)	$	38,573	$	(18,348	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2015
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	4,280	$	7,818	$	5,273		$	(13,091	)	$	4,280
Currency translation adjustment, net	4,436		—		4,436			(4,436		)	4,436
Pension liability adjustments, net of tax	1,488		427		1,061			(1,488		)	1,488
Comprehensive income (loss)	10,204		8,245		10,770			(19,015		)	10,204
Net comprehensive loss attributable to noncontrolling interests	—		—		(1,904		)	—			(1,904		)
Comprehensive income (loss) attributable to Titan	$	10,204	$	8,245	$	12,674		$	(19,015	)	$	12,108



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended June 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(24,891	)	$	(11,462	)	$	(23,156	)	$	34,618		$	(24,891	)
Currency translation adjustment, net	7,826			—			7,826			(7,826		)	7,826
Pension liability adjustments, net of tax	28			450			(422		)	(28		)	28
Comprehensive income (loss)	(17,037		)	(11,012		)	(15,752		)	26,764			(17,037		)
Net comprehensive loss attributable to noncontrolling interests	—			—			(1,062		)	—			(1,062		)
Comprehensive income (loss) attributable to Titan	$	(17,037	)	$	(11,012	)	$	(14,690	)	$	26,764		$	(15,975	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	3,220		$	12,465	$	7,233		$	(19,698	)	$	3,220
Currency translation adjustment, net	(40,950		)	—		(40,950		)	40,950			(40,950		)
Pension liability adjustments, net of tax	1,497			854		643			(1,497		)	1,497
Comprehensive income (loss)	(36,233		)	13,319		(33,074		)	19,755			(36,233		)
Net comprehensive loss attributable to noncontrolling interests	—			—		(4,917		)	—			(4,917		)
Comprehensive income (loss) attributable to Titan	$	(36,233	)	$	13,319	$	(28,157	)	$	19,755		$	(31,316	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Six Months Ended June 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(30,019	)	$	(3,599	)	$	(34,974	)	$	38,573		$	(30,019	)
Currency translation adjustment, net	8,214			—			8,214			(8,214		)	8,214
Pension liability adjustments, net of tax	745			900			(155		)	(745		)	745
Comprehensive income (loss)	(21,060		)	(2,699		)	(26,915		)	29,614			(21,060		)
Net comprehensive loss attributable to noncontrolling interests	—			—			(13,245		)	—			(13,245		)
Comprehensive income (loss) attributable to Titan	$	(21,060	)	$	(2,699	)	$	(13,670	)	$	29,614		$	(7,815	)



(Amounts in thousands)	Consolidating Condensed Balance Sheets June 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	128,163		$	4		$	59,317	$	—		$	187,484
Accounts receivable, net	—			77,191			147,498		—			224,689
Inventories	—			96,405			209,682		—			306,087
Prepaid and other current assets	21,516			16,603			50,639		—			88,758
Total current assets	149,679			190,203			467,136		—			807,018
Property, plant and equipment, net	7,408			148,053			327,946		—			483,407
Investment in subsidiaries	789,267			—			114,165		(903,432		)	—
Other assets	48,886			1,212			79,891		—			129,989
Total assets	$	995,240		$	339,468		$	989,138	$	(903,432	)	$	1,420,414
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	25,068	$	—		$	25,068
Accounts payable	1,559			12,862			121,337		—			135,758
Other current liabilities	29,513			41,812			50,642		—			121,967
Total current liabilities	31,072			54,674			197,047		—			282,793
Long-term debt	460,161			—			35,112		—			495,273
Other long-term liabilities	8,339			18,967			60,548		—			87,854
Intercompany accounts	(34,525		)	(247,824		)	282,349		—			—
Titan stockholders' equity	530,193			513,651			389,781		(903,432		)	530,193
Noncontrolling interests	—			—			24,301		—			24,301
Total liabilities and stockholders’ equity	$	995,240		$	339,468		$	989,138	$	(903,432	)	$	1,420,414



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	129,985		$	4		$	71,462	$	—		$	201,451
Accounts receivable, net	(55		)	63,645			135,788		—			199,378
Inventories	—			103,230			228,202		—			331,432
Prepaid and other current assets	26,803			21,105			55,761		—			103,669
Total current assets	156,733			187,984			491,213		—			835,930
Property, plant and equipment, net	7,590			160,318			359,506		—			527,414
Investment in subsidiaries	745,084			—			109,768		(854,852		)	—
Other assets	51,381			827			80,172		—			132,380
Total assets	$	960,788		$	349,129		$	1,040,659	$	(854,852	)	$	1,495,724
Liabilities and Stockholders’ Equity
Short-term debt	$	—		$	—		$	26,233	$	—		$	26,233
Accounts payable	1,795			10,876			133,634		—			146,305
Other current liabilities	28,519			45,291			55,208		—			129,018
Total current liabilities	30,314			56,167			215,075		—			301,556
Long-term debt	460,161			—			36,342		—			496,503
Other long-term liabilities	15,244			20,867			71,496		—			107,607
Intercompany accounts	(105,703		)	(228,307		)	334,010		—			—
Titan stockholders' equity	560,772			500,402			354,450		(854,852		)	560,772
Noncontrolling interests	—			—			29,286		—			29,286
Total liabilities and stockholders’ equity	$	960,788		$	349,129		$	1,040,659	$	(854,852	)	$	1,495,724



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Six Months Ended June 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(478	)	$	2,769		$	5,551		$	7,842
Cash flows from investing activities:
Capital expenditures	(412		)	(2,799		)	(19,294		)	(22,505		)
Other, net	—			30			2,678			2,708
Net cash used for investing activities	(412		)	(2,769		)	(16,616		)	(19,797		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			13,239			13,239
Payment on debt	—			—			(8,517		)	(8,517		)
Proceeds from exercise of stock options	144			—			—			144
Excess tax benefit from stock-based compensation	(538		)	—			—			(538		)
Dividends paid	(538		)	—			—			(538		)
Net cash provided by (used for) financing activities	(932		)	—			4,722			3,790
Effect of exchange rate change on cash	—			—			(5,802		)	(5,802		)
Net decrease in cash and cash equivalents	(1,822		)	—			(12,145		)	(13,967		)
Cash and cash equivalents, beginning of period	129,985			4			71,462			201,451
Cash and cash equivalents, end of period	$	128,163		$	4		$	59,317		$	187,484



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Six Months Ended June 30, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	11,495		$	4,430		$	27,130		$	43,055
Cash flows from investing activities:
Capital expenditures	(667		)	(4,770		)	(25,446		)	(30,883		)
Acquisition of additional interest	(49		)	—			(13,346		)	(13,395		)
Decrease in restricted cash deposits	—			—			14,268			14,268
Other, net	—			341			2,900			3,241
Net cash used for investing activities	(716		)	(4,429		)	(21,624		)	(26,769		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			6,217			6,217
Payment on debt	—			—			(53,393		)	(53,393		)
Proceeds from exercise of stock options	141			—			—			141
Excess tax benefit from stock-based compensation	(45		)	—			—			(45		)
Payment of financing fees	(33		)	—			—			(33		)
Dividends paid	(536		)	—			—			(536		)
Net cash provided by (used for) financing activities	(473		)	—			(47,176		)	(47,649		)
Effect of exchange rate change on cash	—			—			4,957			4,957
Net increase (decrease) in cash and cash equivalents	10,306			1			(36,713		)	(26,406		)
Cash and cash equivalents, beginning of period	81,472			4			107,884			189,360
Cash and cash equivalents, end of period	$	91,778		$	5		$	71,171		$	162,954