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 March 31, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	144,034		$	177,760		$	—		$	321,794
Cost of sales	494			125,146			164,266			—			289,906
Gross profit (loss)	(494		)	18,888			13,494			—			31,888
Selling, general and administrative expenses	2,382			16,685			15,995			—			35,062
Research and development expenses	—			768			1,711			—			2,479
Royalty expense	292			1,196			806			—			2,294
Income (loss) from operations	(3,168		)	239			(5,018		)	—			(7,947		)
Interest expense	(8,283		)	—			(229		)	—			(8,512		)
Intercompany interest income (expense)	290			—			(290		)	—			—
Foreign exchange gain (loss)	—			(2		)	4,825			—			4,823
Other income	362			85			3,458			—			3,905
Income (loss) before income taxes	(10,799		)	322			2,746			—			(7,731		)
Provision for income taxes	379			191			434			—			1,004
Equity in earnings of subsidiaries	2,443			—			(2,005		)	(438		)	—
Net income (loss)	(8,735		)	131			307			(438		)	(8,735		)
Net income noncontrolling interests	—			—			417			—			417
Net income (loss) attributable to Titan	$	(8,735	)	$	131		$	(110	)	$	(438	)	$	(9,152	)



(Amounts in thousands)	Consolidating Condensed Statements of Operations For the Three Months Ended March 31, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	193,973		$	208,086		$	—		$	402,059
Cost of sales	231			167,951			191,083			—			359,265
Gross profit (loss)	(231		)	26,022			17,003			—			42,794
Selling, general and administrative expenses	2,634			15,379			17,661			—			35,674
Research and development expenses	—			1,000			2,086			—			3,086
Royalty expense	—			1,924			1,301			—			3,225
Income (loss) from operations	(2,865		)	7,719			(4,045		)	—			809
Interest expense	(8,115		)	—			(641		)	—			(8,756		)
Intercompany interest income (expense)	142			—			(142		)	—			—
Foreign exchange gain (loss)	4,515			(341		)	1,792						5,966
Other income (expense)	882			(38		)	1,473			—			2,317
Income (loss) before income taxes	(5,441		)	7,340			(1,563		)	—			336
Provision (benefit) for income taxes	2,389			2,693			(3,686		)	—			1,396
Equity in earnings of subsidiaries	6,770			—			(163		)	(6,607		)	—
Net income (loss)	(1,060		)	4,647			1,960			(6,607		)	(1,060		)
Net loss noncontrolling interests	—			—			(1,292		)	—			(1,292		)
Net income (loss) attributable to Titan	$	(1,060	)	$	4,647		$	3,252		$	(6,607	)	$	232



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended March 31, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(8,735	)	$	131	$	307	$	(438	)	$	(8,735	)
Currency translation adjustment, net	17,584			—		17,584		(17,584		)	17,584
Pension liability adjustments, net of tax	287			265		22		(287		)	287
Comprehensive income (loss)	9,136			396		17,913		(18,309		)	9,136
Net comprehensive income attributable to redeemable and noncontrolling interests	—			—		5,400		—			5,400
Comprehensive income (loss) attributable to Titan	$	9,136		$	396	$	12,513	$	(18,309	)	$	3,736



(Amounts in thousands)	Consolidating Condensed Statements of Comprehensive Income (Loss) For the Three Months Ended March 31, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(1,060	)	$	4,647	$	1,960		$	(6,607	)	$	(1,060	)
Currency translation adjustment, net	(45,386		)	—		(45,386		)	45,386			(45,386		)
Pension liability adjustments, net of tax	9			427		(418		)	(9		)	9
Comprehensive income (loss)	(46,437		)	5,074		(43,844		)	38,770			(46,437		)
Net comprehensive loss attributable to redeemable and noncontrolling interests	—			—		(3,013		)	—			(3,013		)
Comprehensive income (loss) attributable to Titan	$	(46,437	)	$	5,074	$	(40,831	)	$	38,770		$	(43,424	)



(Amounts in thousands)	Consolidating Condensed Balance Sheets March 31, 2016
	Titan Intl., Inc. (Parent)		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	131,314	$	4		$	59,779		$	—		$	191,097
Accounts receivable, net	—		75,272			141,151			—			216,423
Inventories	—		75,053			190,120			—			265,173
Prepaid and other current assets	9,592		21,180			29,987			—			60,759
Total current assets	140,906		171,509			421,037			—			733,452
Property, plant and equipment, net	7,085		134,139			316,781			—			458,005
Investment in subsidiaries	731,081		—			97,202			(828,283		)	—
Other assets	31,364		1,172			83,972			—			116,508
Total assets	$	910,436	$	306,820		$	918,992		$	(828,283	)	$	1,307,965
Liabilities and Stockholders’ Equity
Short-term debt	$	60,161	$	—		$	28,622		$	—		$	88,783
Accounts payable	3,416		16,168			118,542			—			138,126
Other current liabilities	35,382		40,016			49,636			—			125,034
Total current liabilities	98,959		56,184			196,800			—			351,943
Long-term debt	400,000		—			19,509			—			419,509
Other long-term liabilities	30,031		19,706			55,549			—			105,286
Intercompany accounts	46,132		(269,628		)	223,496			—			—
Redeemable noncontrolling interest	—		—			96,774			—			96,774
Titan stockholders' equity	335,314		500,558			327,726			(828,283		)	335,315
Noncontrolling interests	—		—			(862		)	—			(862		)
Total liabilities and stockholders’ equity	$	910,436	$	306,820		$	918,992		$	(828,283	)	$	1,307,965



(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	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 Statements of Cash Flows For the Three Months Ended March 31, 2016
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	(11,182	)	$	1,969		$	11,546		$	2,333
Cash flows from investing activities:
Capital expenditures	365			(1,969		)	(5,545		)	(7,149		)
Other, net	—			—			771			771
Net cash provided by (used for) investing activities	365			(1,969		)	(4,774		)	(6,378		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			110			110
Payment on debt	—			—			(7,288		)	(7,288		)
Dividends paid	(270		)	—			—			(270		)
Net cash used for financing activities	(270		)	—			(7,178		)	(7,448		)
Effect of exchange rate change on cash	—			—			2,402			2,402
Net increase (decrease) in cash and cash equivalents	(11,087		)	—			1,996			(9,091		)
Cash and cash equivalents, beginning of period	142,401			4			57,783			200,188
Cash and cash equivalents, end of period	$	131,314		$	4		$	59,779		$	191,097



(Amounts in thousands)	Consolidating Condensed Statements of Cash Flows For the Three Months Ended March 31, 2015
	Titan Intl., Inc. (Parent)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidated
Net cash provided by (used for) operating activities	$	9,788		$	1,481		$	(18,236	)	$	(6,967	)
Cash flows from investing activities:
Capital expenditures	(181		)	(1,456		)	(9,782		)	(11,419		)
Other, net	—			16			2,318			2,334
Net cash used for investing activities	(181		)	(1,440		)	(7,464		)	(9,085		)
Cash flows from financing activities:
Proceeds from borrowings	—			—			11,102			11,102
Payment on debt	—			—			(1,456		)	(1,456		)
Excess tax benefit from stock-based compensation	(388		)	—			—			(388		)
Dividends paid	(269		)	—			—			(269		)
Net cash provided by (used for) financing activities	(657		)	—			9,646			8,989
Effect of exchange rate change on cash	—			—			(3,837		)	(3,837		)
Net increase (decrease) in cash and cash equivalents	8,950			41			(19,891		)	(10,900		)
Cash and cash equivalents, beginning of period	129,985			4			71,462			201,451
Cash and cash equivalents, end of period	$	138,935		$	45		$	51,571		$	190,551