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 September 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	114,743		$	191,452		$	—	$	306,195
Cost of sales	87			101,517			171,615			—		273,219
Gross profit (loss)	(87		)	13,226			19,837			—		32,976
Selling, general and administrative expenses	2,556			15,407			18,385			—		36,348
Research and development expenses	—			776			1,821			—		2,597
Royalty expense	125			1,296			864			—		2,285
Loss from operations	(2,768		)	(4,253		)	(1,233		)	—		(8,254		)
Interest expense	(8,288		)	—			(426		)	—		(8,714		)
Intercompany interest income (expense)	470			—			(470		)	—		—
Foreign exchange gain	—			—			398			—		398
Other income	1,256			62			2,260			—		3,578
Income (loss) before income taxes	(9,330		)	(4,191		)	529			—		(12,992		)
Provision (benefit) for income taxes	(1,935		)	(1,448		)	1,309			—		(2,074		)
Equity in earnings of subsidiaries	(3,523		)	—			(4,037		)	7,560		—
Net income (loss)	(10,918		)	(2,743		)	(4,817		)	7,560		(10,918		)
Net loss noncontrolling interests	—			—			(966		)	—		(966		)
Net income (loss) attributable to Titan	$	(10,918	)	$	(2,743	)	$	(3,851	)	$	7,560	$	(9,952	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended September 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	138,638		$	170,198		$	—	$	308,836
Cost of sales	196			123,052			159,435			—		282,683
Gross profit (loss)	(196		)	15,586			10,763			—		26,153
Selling, general and administrative expenses	2,118			17,490			15,904			—		35,512
Research and development expenses	—			854			2,128			—		2,982
Royalty expense	—			1,354			767			—		2,121
Loss from operations	(2,314		)	(4,112		)	(8,036		)	—		(14,462		)
Interest expense	(8,041		)	—			(248		)	—		(8,289		)
Intercompany interest income (expense)	214			—			(214		)	—		—
Foreign exchange gain (loss)	182			(1		)	(15,514		)			(15,333		)
Other income (expense)	(410		)	42			1,123			—		755
Loss before income taxes	(10,369		)	(4,071		)	(22,889		)	—		(37,329		)
Provision (benefit) for income taxes	3,429			(1,571		)	(1,575		)	—		283
Equity in earnings of subsidiaries	(23,814		)	—			(4,353		)	28,167		—
Net income (loss)	(37,612		)	(2,500		)	(25,667		)	28,167		(37,612		)
Net loss noncontrolling interests	—			—			(6,136		)	—		(6,136		)
Net income (loss) attributable to Titan	$	(37,612	)	$	(2,500	)	$	(19,531	)	$	28,167	$	(31,476	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Nine Months Ended September 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	384,917	$	573,286		$	—	$	958,203
Cost of sales	659			331,040		516,565			—		848,264
Gross profit (loss)	(659		)	53,877		56,721			—		109,939
Selling, general and administrative expenses	7,907			47,879		51,926			—		107,712
Research and development expenses	—			2,221		5,569			—		7,790
Royalty expense	542			3,573		2,573			—		6,688
Income (loss) from operations	(9,108		)	204		(3,347		)	—		(12,251		)
Interest expense	(24,382		)	—		(826		)	—		(25,208		)
Intercompany interest income (expense)	1,122			—		(1,122		)	—		—
Foreign exchange gain	—			202		7,201			—		7,403
Other income	1,864			220		8,448			—		10,532
Income (loss) before income taxes	(30,504		)	626		10,354			—		(19,524		)
Provision (benefit) for income taxes	(2,205		)	417		4,366			—		2,578
Equity in earnings of subsidiaries	6,197			—		(6,243		)	46		—
Net income (loss)	(22,102		)	209		(255		)	46		(22,102		)
Net loss noncontrolling interests	—			—		(1,099		)	—		(1,099		)
Net income (loss) attributable to Titan	$	(22,102	)	$	209	$	844		$	46	$	(21,003	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Nine Months Ended September 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net sales	$	—		$	505,945		$	581,017		$	—	$	1,086,962
Cost of sales	634			432,331			533,997			—		966,962
Gross profit (loss)	(634		)	73,614			47,020			—		120,000
Selling, general and administrative expenses	7,369			49,626			52,039			—		109,034
Research and development expenses	—			2,659			6,188			—		8,847
Royalty expense	—			5,110			3,131			—		8,241
Income (loss) from operations	(8,003		)	16,219			(14,338		)	—		(6,122		)
Interest expense	(24,250		)	(1		)	(1,436		)	—		(25,687		)
Intercompany interest income (expense)	604			—			(604		)	—		—
Foreign exchange gain (loss)	3,272			(422		)	(8,570		)			(5,720		)
Other income	1,504			87			4,740			—		6,331
Income (loss) before income taxes	(26,873		)	15,883			(20,208		)	—		(31,198		)
Provision (benefit) for income taxes	31			5,918			(2,755		)	—		3,194
Equity in earnings of subsidiaries	(7,488		)	—			(981		)	8,469		—
Net income (loss)	(34,392		)	9,965			(18,434		)	8,469		(34,392		)
Net loss noncontrolling interests	—			—			(9,919		)	—		(9,919		)
Net income (loss) attributable to Titan	$	(34,392	)	$	9,965		$	(8,515	)	$	8,469	$	(24,473	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(10,918	)	$	(2,743	)	$	(4,817	)	$	7,560		$	(10,918	)
Currency translation adjustment	(386		)	—			(386		)	386			(386		)
Pension liability adjustments, net of tax	465			734			(269		)	(465		)	465
Comprehensive income (loss)	(10,839		)	(2,009		)	(5,472		)	7,481			(10,839		)
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—			(679		)	—			(679		)
Comprehensive income (loss) attributable to Titan	$	(10,839	)	$	(2,009	)	$	(4,793	)	$	7,481		$	(10,160	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended September 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(37,612	)	$	(2,500	)	$	(25,667	)	$	28,167		$	(37,612	)
Currency translation adjustment	(28,444		)	—			(28,444		)	28,444			(28,444		)
Pension liability adjustments, net of tax	472			427			45			(472		)	472
Comprehensive income (loss)	(65,584		)	(2,073		)	(54,066		)	56,139			(65,584		)
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—			(8,233		)	—			(8,233		)
Comprehensive income (loss) attributable to Titan	$	(65,584	)	$	(2,073	)	$	(45,833	)	$	56,139		$	(57,351	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(22,102	)	$	209	$	(255	)	$	46		$	(22,102	)
Currency translation adjustment	21,545			—		(21,545		)	21,545			21,545
Pension liability adjustments, net of tax	1,200			2,202		(1,002		)	(1,200		)	1,200
Comprehensive income (loss)	643			2,411		(22,802		)	20,391			643
Net comprehensive income attributable to redeemable and noncontrolling interests	—			—		5,427			—			5,427
Comprehensive income (loss) attributable to Titan	$	643		$	2,411	$	(28,229	)	$	20,391		$	(4,784	)



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Nine Months Ended September 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(34,392	)	$	9,965	$	(18,434	)	$	8,469		$	(34,392	)
Currency translation adjustment	(69,394		)	—		(69,394		)	69,394			(69,394		)
Pension liability adjustments, net of tax	1,969			1,281		688			(1,969		)	1,969
Comprehensive income (loss)	(101,817		)	11,246		(87,140		)	75,894			(101,817		)
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—		(13,150		)	—			(13,150		)
Comprehensive income (loss) attributable to Titan	$	(101,817	)	$	11,246	$	(73,990	)	$	75,894		$	(88,667	)



(Amounts in thousands)	Consolidating Condensed Balance Sheets September 30, 2016
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	145,088	$	14		$	70,407		$	—		$	215,509
Accounts receivable, net	—		52,179			132,173			—			184,352
Inventories	—		72,924			205,159			—			278,083
Prepaid and other current assets	9,387		21,292			46,293			—			76,972
Total current assets	154,475		146,409			454,032			—			754,916
Property, plant and equipment, net	5,728		126,342			315,012			—			447,082
Investment in subsidiaries	759,983		—			91,974			(851,957		)	—
Other assets	24,835		1,118			80,105			—			106,058
Total assets	$	945,021	$	273,869		$	941,123		$	(851,957	)	$	1,308,056
Liabilities and Equity
Short-term debt	$	60,071	$	—		$	30,959		$	—		$	91,030
Accounts payable	1,636		17,458			133,293			—			152,387
Other current liabilities	39,451		33,372			57,415			—			130,238
Total current liabilities	101,158		50,830			221,667			—			373,655
Long-term debt	395,610		—			14,479			—			410,089
Other long-term liabilities	27,143		17,687			56,206			—			101,036
Intercompany accounts	88,495		(294,580		)	206,085			—			—
Redeemable noncontrolling interest	—		—			102,793			—			102,793
Titan shareholders' equity	332,615		499,932			343,478			(851,957		)	324,068
Noncontrolling interests	—		—			(3,585		)	—			(3,585		)
Total liabilities and equity	$	945,021	$	273,869		$	941,123		$	(851,957	)	$	1,308,056



(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 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 shareholders' equity	345,059		499,693			323,643			(823,336		)	345,059
Noncontrolling interests	—		—			(376		)	—			(376		)
Total liabilities and equity	$	915,373	$	302,595		$	875,598		$	(823,336	)	$	1,270,230



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Nine Months Ended September 30, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	4,154		$	5,553		$	44,277		$	53,984
Cash flows from investing activities:
Capital expenditures	(657		)	(5,616		)	(24,573		)	(30,846		)
Other, net	—			73			1,614			1,687
Net cash used for investing activities	(657		)	(5,543		)	(22,959		)	(29,159		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			2,390			2,390
Payment on debt	—			—			(14,042		)	(14,042		)
Dividends paid	(810		)	—			—			(810		)
Net cash used for financing activities	(810		)	—			(11,652		)	(12,462		)
Effect of exchange rate change on cash	—			—			2,958			2,958
Net increase in cash and cash equivalents	2,687			10			12,624			15,321
Cash and cash equivalents, beginning of period	142,401			4			57,783			200,188
Cash and cash equivalents, end of period	$	145,088		$	14		$	70,407		$	215,509



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Nine Months Ended September 30, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by operating activities	$	9,581		$	4,532		$	16,423		$	30,536
Cash flows from investing activities:
Capital expenditures	(1,121		)	(4,562		)	(29,530		)	(35,213		)
Other, net	—			30			4,287			4,317
Net cash used for investing activities	(1,121		)	(4,532		)	(25,243		)	(30,896		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			14,566			14,566
Payment on debt	—			—			(11,382		)	(11,382		)
Proceeds from exercise of stock options	144			—			—			144
Excess tax benefit from stock-based compensation	(758		)	—			—			(758		)
Dividends paid	(807		)	—			—			(807		)
Net cash provided by (used for) financing activities	(1,421		)	—			3,184			1,763
Effect of exchange rate change on cash	—			—			(9,042		)	(9,042		)
Net increase (decrease) in cash and cash equivalents	7,039			—			(14,678		)	(7,639		)
Cash and cash equivalents, beginning of period	129,985			4			71,462			201,451
Cash and cash equivalents, end of period	$	137,024		$	4		$	56,784		$	193,812