SUBSIDIARY GUARANTOR FINANCIAL INFORMATION

The Company's 6.875% senior secured notes due 2020 are, and 5.625% convertible senior subordinated notes due 2017 were, 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, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	498,390		$	767,107		$	—	$	1,265,497
Cost of sales	759			429,087			693,169			—		1,123,015
Gross profit (loss)	(759		)	69,303			73,938			—		142,482
Selling, general, and administrative expenses	11,394			66,815			66,779			—		144,988
Research and development expenses	—			2,876			7,095			—		9,971
Royalty expense	667			4,866			3,323			—		8,856
Loss from operations	(12,820		)	(5,254		)	(3,259		)	—		(21,333		)
Interest expense	(32,208		)	—			(331		)	—		(32,539		)
Intercompany interest income (expense)	1,781			3,525			(5,306		)	—		—
Foreign exchange gain	—			298			8,252			—		8,550
Other income	2,503			180			9,783			—		12,466
Income (loss) before income taxes	(40,744		)	(1,251		)	9,139			—		(32,856		)
Provision (benefit) for income taxes	(64		)	30			3,315			—		3,281
Equity in earnings of subsidiaries	4,542			—			(10,307		)	5,765		—
Net income (loss)	(36,138		)	(1,281		)	(4,483		)	5,765		(36,137		)
Net loss noncontrolling interests	—			—			(2,150		)	—		(2,150		)
Net income (loss) attributable to Titan	$	(36,138	)	$	(1,281	)	$	(2,333	)	$	5,765	$	(33,987	)



(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		)	—		—
Foreign exchange gain (loss)	4,296			(462		)	(8,592		)	—		(4,758		)
Other income	2,327			2,572			6,164			—		11,063
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		)	—		—
Foreign exchange gain (loss)	1,056			13			(32,782		)	—		(31,713		)
Other income	3,202			1			10,455			—		13,658
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 Comprehensive Income (Loss) For the Year Ended December 31, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(36,138	)	$	(1,281	)	$	(4,483	)	$	5,765		$	(36,137	)
Currency translation adjustment, net	5,857			—			5,857			(5,857		)	5,857
Pension liability adjustments, net of tax	1,071			1,680			(609		)	(1,071		)	1,071
Comprehensive income (loss)	(29,210		)	399			765			(1,163		)	(29,209		)
Net comprehensive income attributable to noncontrolling interests	—			—			5,305			—			5,305
Comprehensive income (loss) attributable to Titan	$	(29,210	)	$	399		$	(4,540	)	$	(1,163	)	$	(34,514	)



(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 Balance Sheets December 31, 2016
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	86,190	$	9		$	61,628		$	—		$	147,827
Certificates of deposit	50,000		—			—			—			50,000
Accounts receivable	—		43,485			135,899			—			179,384
Inventories	—		73,878			195,413			—			269,291
Prepaid and other current assets	11,965		21,901			45,868			—			79,734
Total current assets	148,155		139,273			438,808			—			726,236
Property, plant, and equipment, net	4,898		124,049			308,254			—			437,201
Investment in subsidiaries	742,679		—			87,385			(830,064		)	—
Other long-term assets	23,627		1,118			74,769			—			99,514
Total assets	$	919,359	$	264,440		$	909,216		$	(830,064	)	$	1,262,951
Liabilities and Stockholders’ Equity
Short-term debt	$	60,148	$	—		$	37,264		$	—		$	97,412
Accounts payable	4,187		14,398			129,670			—			148,255
Other current liabilities	34,140		34,475			51,822			—			120,437
Total current liabilities	98,475		48,873			218,756			—			366,104
Long-term debt	395,852		—			12,908			—			408,760
Other long-term liabilities	27,636		18,473			47,235			—			93,344
Intercompany accounts	94,977		(300,823		)	205,846			—			—
Redeemable noncontrolling interest	—		—			104,809			—			104,809
Titan stockholders' equity	302,419		497,917			323,600			(830,064		)	293,872
Noncontrolling interests	—		—			(3,938		)	—			(3,938		)
Total liabilities and stockholders’ equity	$	919,359	$	264,440		$	909,216		$	(830,064	)	$	1,262,951



(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 long-term 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 Year Ended December 31, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(3,193	)	$	8,035		$	38,658		$	43,500
Cash flows from investing activities:
Capital expenditures	(1,937		)	(8,444		)	(31,567		)	(41,948		)
Certificates of deposit	(50,000		)	—			—			(50,000		)
Other, net	—			414			1,808			2,222
Net cash used for investing activities	(51,937		)	(8,030		)	(29,759		)	(89,726		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			17,285			17,285
Payment on debt	—			—			(22,634		)	(22,634		)
Dividends paid	(1,081		)	—			—			(1,081		)
Net cash used for financing activities	(1,081		)	—			(5,349		)	(6,430		)
Effect of exchange rate change on cash	—			—			295			295
Net increase (decrease) in cash and cash equivalents	(56,211		)	5			3,845			(52,361		)
Cash and cash equivalents, beginning of period	142,401			4			57,783			200,188
Cash and cash equivalents, end of period	$	86,190		$	9		$	61,628		$	147,827



(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 provided by (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