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. See the indenture incorporated by reference to the Company's most recent Form 10-K for additional information. 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, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	126,140	$	204,074		$	—		$	330,214
Cost of sales	77			104,378		180,684			—			285,139
Gross profit (loss)	(77		)	21,762		23,390			—			45,075
Selling, general and administrative expenses	2,969			15,787		17,546			—			36,302
Research and development expenses	—			677		2,037			—			2,714
Royalty expense	125			1,080		904			—			2,109
Income (loss) from operations	(3,171		)	4,218		2,903			—			3,950
Interest expense	(7,811		)	—		(171		)	—			(7,982		)
Intercompany interest income (expense)	363			—		(363		)	—			—
Foreign exchange gain	—			204		1,978			—			2,182
Other income	245			74		2,730			—			3,049
Income (loss) before income taxes	(10,374		)	4,496		7,077			—			1,199
Provision (benefit) for income taxes	(648		)	1,674		2,622			—			3,648
Equity in earnings of subsidiaries	7,277			—		(200		)	(7,077		)	—
Net income (loss)	(2,449		)	2,822		4,255			(7,077		)	(2,449		)
Net loss noncontrolling interests	—			—		(550		)	—			(550		)
Net income (loss) attributable to Titan	$	(2,449	)	$	2,822	$	4,805		$	(7,077	)	$	(1,899	)



(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		)	—			—
Foreign exchange gain (loss)	(1,425		)	(80		)	5,152						3,647
Other income	1,032			83			2,144			—			3,259
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 Six Months Ended June 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	270,174	$	381,834		$	—		$	652,008
Cost of sales	572			229,524		344,949			—			575,045
Gross profit (loss)	(572		)	40,650		36,885			—			76,963
Selling, general and administrative expenses	5,351			32,473		33,540			—			71,364
Research and development expenses	—			1,445		3,748			—			5,193
Royalty expense	417			2,276		1,710			—			4,403
Income (loss) from operations	(6,340		)	4,456		(2,113		)	—			(3,997		)
Interest expense	(16,094		)	—		(400		)	—			(16,494		)
Intercompany interest income (expense)	652			—		(652		)	—			—
Foreign exchange gain	—			203		6,802			—			7,005
Other income	608			158		6,188			—			6,954
Income (loss) before income taxes	(21,174		)	4,817		9,825			—			(6,532		)
Provision (benefit) for income taxes	(270		)	1,865		3,057			—			4,652
Equity in earnings of subsidiaries	9,720			—		(2,206		)	(7,514		)	—
Net income (loss)	(11,184		)	2,952		4,562			(7,514		)	(11,184		)
Net loss noncontrolling interests	—			—		(133		)	—			(133		)
Net income (loss) attributable to Titan	$	(11,184	)	$	2,952	$	4,695		$	(7,514	)	$	(11,051	)



(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
Income (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		)	—			—
Foreign exchange gain (loss)	3,090			(421		)	6,944						9,613
Other income	1,914			45			3,617			—			5,576
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 Comprehensive Income (Loss) For the Three Months Ended June 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(2,449	)	$	2,822	$	4,255		$	(7,077	)	$	(2,449	)
Currency translation adjustment, net	4,346			—		4,346			(4,346		)	4,346
Pension liability adjustments, net of tax	448			734		(447		)	(287		)	448
Comprehensive income (loss)	2,345			3,556		8,154			(11,710		)	2,345
Net comprehensive income attributable to redeemable and noncontrolling interests	—			—		706			—			706
Comprehensive income (loss) attributable to Titan	$	2,345		$	3,556	$	7,448		$	(11,710	)	$	1,639



(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 redeemable and 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 Six Months Ended June 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(11,184	)	$	2,952	$	4,562		$	(7,514	)	$	(11,184	)
Currency translation adjustment, net	21,931			—		(21,931		)	21,931			21,931
Pension liability adjustments, net of tax	735			1,469		(734		)	(735		)	735
Comprehensive income (loss)	11,482			4,421		(18,103		)	13,682			11,482
Net comprehensive income attributable to redeemable and noncontrolling interests	—			—		6,106			—			6,106
Comprehensive income (loss) attributable to Titan	$	11,482		$	4,421	$	(24,209	)	$	13,682		$	5,376



(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 redeemable and 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 Balance Sheets June 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	135,227		$	4		$	72,007		$	—		$	207,238
Accounts receivable, net	(6		)	54,413			142,311			—			196,718
Inventories	—			69,592			204,152			—			273,744
Prepaid and other current assets	8,879			22,197			41,276			—			72,352
Total current assets	144,100			146,206			459,746			—			750,052
Property, plant and equipment, net	6,198			130,394			312,880			—			449,472
Investment in subsidiaries	750,948			—			95,657			(846,605		)	—
Other assets	24,825			1,118			83,005			—			108,948
Total assets	$	926,071		$	277,718		$	951,288		$	(846,605	)	$	1,308,472
Liabilities and Stockholders’ Equity
Short-term debt	$	59,994		$	—		$	29,044		$	—		$	89,038
Accounts payable	1,549			14,075			129,944			—			145,568
Other current liabilities	28,377			36,855			57,020			—			122,252
Total current liabilities	89,920			50,930			216,008			—			356,858
Long-term debt	395,377			—			19,193			—			414,570
Other long-term liabilities	28,977			18,711			55,344			—			103,032
Intercompany accounts	67,758			(293,862		)	226,104			—			—
Redeemable noncontrolling interest	—			—			100,777			—			100,777
Titan stockholders' equity	344,039			501,939			336,120			(846,605		)	335,493
Noncontrolling interests	—			—			(2,258		)	—			(2,258		)
Total liabilities and stockholders’ equity	$	926,071		$	277,718		$	951,288		$	(846,605	)	$	1,308,472



(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, net	—		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	29,180		1,181			79,848			—			110,209
Total assets	$	915,373	$	302,595		$	875,598		$	(823,336	)	$	1,270,230
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	455,200		—			20,243			—			475,443
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	$	915,373	$	302,595		$	875,598		$	(823,336	)	$	1,270,230



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Six Months Ended June 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(7,085	)	$	4,255		$	32,502		$	29,672
Cash flows from investing activities:
Capital expenditures	451			(4,304		)	(14,197		)	(18,050		)
Other, net	—			49			1,245			1,294
Net cash provided by (used for) investing activities	451			(4,255		)	(12,952		)	(16,756		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			1,559			1,559
Payment on debt	—			—			(10,248		)	(10,248		)
Dividends paid	(540		)	—			—			(540		)
Net cash used for financing activities	(540		)	—			(8,689		)	(9,229		)
Effect of exchange rate change on cash	—			—			3,363			3,363
Net increase (decrease) in cash and cash equivalents	(7,174		)	—			14,224			7,050
Cash and cash equivalents, beginning of period	142,401			4			57,783			200,188
Cash and cash equivalents, end of period	$	135,227		$	4		$	72,007		$	207,238



(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