SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 6.875% senior secured notes due 2020 and 5.625% convertible senior subordinated notes due 2017 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 & marketing expenses recorded by non-guarantor subsidiaries have not been allocated to the guarantor subsidiaries.



(Amounts in thousands)	Consolidating Condensed Statements of Operations Year Ended December 31, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	640,785	$	753,986		$	—	$	1,394,771
Cost of sales	2,826			558,363		695,773			—		1,256,962
Gross profit (loss)	(2,826		)	82,422		58,213			—		137,809
Selling, general and administrative expenses	7,513			69,686		63,194			—		140,393
Research and development expenses	—			3,505		7,657			—		11,162
Royalty expense	—			6,711		3,822			—		10,533
Income (loss) from operations	(10,339		)	2,520		(16,460		)	—		(24,279		)
Interest expense	(32,291		)	—		(1,741		)	—		(34,032		)
Intercompany interest income (expense)	825			2,361		(3,186		)	—		—
Other income (expense)	6,623			2,110		(2,428		)	—		6,305
Income (loss) before income taxes	(35,182		)	6,991		(23,815		)	—		(52,006		)
Provision for income taxes	34,341			2,007		1,933			—		38,281
Equity in earnings of subsidiaries	(20,764		)	—		(5,755		)	26,519		—
Net income (loss)	(90,287		)	4,984		(31,503		)	26,519		(90,287		)
Net loss noncontrolling interests	—			—		(14,654		)	—		(14,654		)
Net income (loss) attributable to Titan	$	(90,287	)	$	4,984	$	(16,849	)	$	26,519	$	(75,633	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations Year Ended December 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	879,982		$	1,015,545		$	—	$	1,895,527
Cost of sales	927			800,310			953,647			—		1,754,884
Gross profit (loss)	(927		)	79,672			61,898			—		140,643
Selling, general and administrative expenses	12,887			71,548			89,179			—		173,614
Research and development expenses	72			5,309			8,624			—		14,005
Royalty expense	—			7,620			6,458			—		14,078
Noncash goodwill impairment charge	—			—			36,571			—		36,571
Loss from operations	(13,886		)	(4,805		)	(78,934		)	—		(97,625		)
Interest expense	(32,783		)	—			(3,781		)	—		(36,564		)
Intercompany interest income (expense)	6,416			2,346			(8,762		)	—		—
Other income (expense)	4,258			14			(22,327		)	—		(18,055		)
Loss before income taxes	(35,995		)	(2,445		)	(113,804		)	—		(152,244		)
Benefit for income taxes	(12,765		)	(374		)	(8,680		)	—		(21,819		)
Equity in earnings of subsidiaries	(107,195		)	—			(26,213		)	133,408		—
Net income (loss)	(130,425		)	(2,071		)	(131,337		)	133,408		(130,425		)
Net loss noncontrolling interests	—			—			(49,964		)	—		(49,964		)
Net income (loss) attributable to Titan	$	(130,425	)	$	(2,071	)	$	(81,373	)	$	133,408	$	(80,461	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations Year Ended December 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	1,139,366		$	1,024,229		$	—		$	2,163,595
Cost of sales	1,157			936,022			931,226			—			1,868,405
Gross profit (loss)	(1,157		)	203,344			93,003			—			295,190
Selling, general and administrative expenses	9,608			73,196			84,567			—			167,371
Research and development expenses	(35		)	5,563			5,637			—			11,165
Royalty expense	—			7,327			6,932			—			14,259
Income (loss) from operations	(10,730		)	117,258			(4,133		)	—			102,395
Interest expense	(38,761		)	—			(8,359		)	—			(47,120		)
Convertible debt conversion charge	(7,273		)	—			—			—			(7,273		)
Loss on note repurchase	(22,734		)	—			—			—			(22,734		)
Gain on earthquake insurance	—			—			22,451			—			22,451
Intercompany interest income (expense)	7,488			2,024			(9,512		)	—			—
Other income (expense)	4,189			(78		)	2,904			—			7,015
Income (loss) before income taxes	(67,821		)	119,204			3,351			—			54,734
Provision (benefit) for income taxes	(26,770		)	42,528			9,289			—			25,047
Equity in earnings of subsidiaries	70,738			—			43,605			(114,343		)	—
Net income (loss)	29,687			76,676			37,667			(114,343		)	29,687
Net loss noncontrolling interests	—			—			(5,518		)	—			(5,518		)
Net income (loss) attributable to Titan	$	29,687		$	76,676		$	43,185		$	(114,343	)	$	35,205



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Year Ended December 31, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net income (loss)	$	(90,287	)	$	4,984		$	(31,503	)	$	26,519	$	(90,287	)
Currency translation adjustment, net	(79,196		)	—			(79,196		)	79,196		(79,196		)
Pension liability adjustments, net of tax	(662		)	(1,557		)	895			662		(662		)
Comprehensive income (loss)	(170,145		)	3,427			(109,804		)	106,377		(170,145		)
Net comprehensive loss attributable to noncontrolling interests	—			—			(19,391		)	—		(19,391		)
Comprehensive income (loss) attributable to Titan	$	(170,145	)	$	3,427		$	(90,413	)	$	106,377	$	(150,754	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Year Ended December 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net income (loss)	$	(130,425	)	$	(2,071	)	$	(131,337	)	$	133,408	$	(130,425	)
Currency translation adjustment, net	(63,424		)	—			(63,424		)	63,424		(63,424		)
Pension liability adjustments, net of tax	(5,129		)	(4,557		)	(572		)	5,129		(5,129		)
Comprehensive income (loss)	(198,978		)	(6,628		)	(195,333		)	201,961		(198,978		)
Net comprehensive loss attributable to noncontrolling interests	—			—			(68,856		)	—		(68,856		)
Comprehensive income (loss) attributable to Titan	$	(198,978	)	$	(6,628	)	$	(126,477	)	$	201,961	$	(130,122	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Year Ended December 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	29,687		$	76,676	$	37,667		$	(114,343	)	$	29,687
Unrealized gain (loss) on investments, net of tax	(3		)	—		(3		)	3			(3		)
Currency translation adjustment, net	(24,287		)	—		(24,287		)	24,287			(24,287		)
Pension liability adjustments, net of tax	14,749			11,472		3,277			(14,749		)	14,749
Comprehensive income (loss)	20,146			88,148		16,654			(104,802		)	20,146
Net comprehensive loss attributable to noncontrolling interests	—			—		(9,734		)	—			(9,734		)
Comprehensive income (loss) attributable to Titan	$	20,146		$	88,148	$	26,388		$	(104,802	)	$	29,880



(Amounts in thousands)	Consolidating Condensed Balance Sheets December 31, 2015
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	142,401	$	4		$	57,783		$	—		$	200,188
Accounts receivable	—		59,933			117,456			—			177,389
Inventories	—		81,993			187,798			—			269,791
Prepaid and other current assets	11,101		21,133			30,399			—			62,633
Total current assets	153,502		163,063			393,436			—			710,001
Property, plant and equipment, net	8,015		138,351			303,654			—			450,020
Investment in subsidiaries	724,676		—			98,660			(823,336		)	—
Other assets	34,141		1,181			79,848			—			115,170
Total assets	$	920,334	$	302,595		$	875,598		$	(823,336	)	$	1,275,191
Liabilities and Stockholders’ Equity
Short-term debt	$	—	$	—		$	31,222		$	—		$	31,222
Accounts payable	2,215		12,386			108,553						123,154
Other current liabilities	30,466		41,818			43,437			—			115,721
Total current liabilities	32,681		54,204			183,212			—			270,097
Long-term debt	460,161		—			20,243			—			480,404
Other long-term liabilities	29,881		20,628			52,324			—			102,833
Intercompany accounts	52,552		(271,930		)	219,378			—			—
Redeemable noncontrolling interest	—		—			77,174			—			77,174
Titan stockholders' equity	345,059		499,693			323,643			(823,336		)	345,059
Noncontrolling interests	—		—			(376		)	—			(376		)
Total liabilities and stockholders’ equity	$	920,334	$	302,595		$	875,598		$	(823,336	)	$	1,275,191



(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	(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	(56,426		)	(228,307		)	284,733		—			—
Redeemable noncontrolling interest	—			—			71,192		—			71,192
Titan stockholders’ equity	511,495			500,402			354,450		(854,852		)	511,495
Noncontrolling interests	—			—			7,371		—			7,371
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 Year Ended December 31, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	15,933		$	6,441		$	41,556		$	63,930
Cash flows from investing activities:
Capital expenditures	(2,585		)	(6,254		)	(39,590		)	(48,429		)
Other, net	—			(187		)	(1,321		)	(1,508		)
Net cash used for investing activities	(2,585		)	(6,441		)	(40,911		)	(49,937		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			5,727			5,727
Payment on debt	—			—			(5,521		)	(5,521		)
Proceeds from exercise of stock options	145			—			—			145
Dividends paid	(1,077		)	—			—			(1,077		)
Net cash used for financing activities	(932		)	—			206			(726		)
Effect of exchange rate change on cash	—			—			(14,530		)	(14,530		)
Net increase (decrease) in cash and cash equivalents	12,416			—			(13,679		)	(1,263		)
Cash and cash equivalents, beginning of period	129,985			4			71,462			201,451
Cash and cash equivalents, end of period	$	142,401		$	4		$	57,783		$	200,188



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows Year Ended December 31, 2014
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	51,113		$	8,584		$	58,123		$	117,820
Cash flows from investing activities:
Capital expenditures	(914		)	(8,584		)	(48,941		)	(58,439		)
Acquisitions, net of cash acquired	(49		)	—			(13,346		)	(13,395		)
Increase in restricted cash deposits	—			—			14,268			14,268
Other, net	—			—			1,296			1,296
Net cash used for investing activities	(963		)	(8,584		)	(46,723		)	(56,270		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			15,708			15,708
Payment on debt	—			—			(60,345		)	(60,345		)
Proceeds from exercise of stock options	141			—			—			141
Excess tax benefit from stock options	(672		)	—			—			(672		)
Payment of financing fees	(33		)	—			—			(33		)
Dividends paid	(1,073		)	—			—			(1,073		)
Net cash used for financing activities	(1,637		)	—			(44,637		)	(46,274		)
Effect of exchange rate change on cash	—			—			(3,185		)	(3,185		)
Net increase (decrease) in cash and cash equivalents	48,513			—			(36,422		)	12,091
Cash and cash equivalents, beginning of period	81,472			4			107,884			189,360
Cash and cash equivalents, end of period	$	129,985		$	4		$	71,462		$	201,451



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows Year Ended December 31, 2013
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(175,810	)	$	29,087		$	263,597		$	116,874
Cash flows from investing activities:
Capital expenditures	(6,290		)	(29,087		)	(44,754		)	(80,131		)
Acquisitions, net of cash acquired	—			—			(95,681		)	(95,681		)
Additional equity investment in Wheels India	—			—			(8,017		)	(8,017		)
Increase in restricted cash deposits	—			—			(14,473		)	(14,473		)
Insurance proceeds	—			—			2,879			2,879
Other, net	—			—			2,119			2,119
Net cash used for investing activities	(6,290		)	(29,087		)	(157,927		)	(193,304		)
Cash flows from financing activities:
Proceeds from borrowings	745,313			—			43,391			788,704
Repurchase of senior notes	(558,360		)	—			—			(558,360		)
Payment on debt	—			—			(200,721		)	(200,721		)
Convertible note conversion	(14,090		)	—			—			(14,090		)
Capital contribution from noncontrolling interest	—			—			79,592			79,592
Proceeds from exercse of stock options	1,001			—			—			1,001
Excess tax benefit from stock options	(68		)	—			—			(68		)
Payment of financing fees	(12,332		)	—			—			(12,332		)
Dividends paid	(1,046		)	—			—			(1,046		)
Net cash provided by (used for) financing activities	160,418			—			(77,738		)	82,680
Effect of exchange rate change on cash	—			—			(6,004		)	(6,004		)
Net increase (decrease) in cash and cash equivalents	(21,682		)	—			21,928			246
Cash and cash equivalents, beginning of period	103,154			4			85,956			189,114
Cash and cash equivalents, end of period	$	81,472		$	4		$	107,884		$	189,360