BusINEss suMMArY As used herein, the term “Timken” or the “Company” refers to The Timken Company and its subsidiaries unless the context otherwise  requires. The Timken Company develops, manufactures, markets and sells products for friction management and mechanical power  transmission, alloy steels and steel components. GENERal ITEM 1. BusINEss PArT I. INDusTRy sEGMENTs aND GEOGRaPhIcal FINaNcIal INFORMaTION MajOR cusTOMERs PRODucTs The Company was founded in 1899 by Henry Timken, who received two patents on the design of a tapered roller bearing. Timken  grew to become the world’s largest manufacturer of tapered roller bearings. Over the years, the Company has expanded its breadth  of bearing products beyond tapered roller bearings to include cylindrical, spherical, needle and precision ball bearings. In addition to  bearings, Timken further broadened its portfolio to include a wide array of friction management products and maintenance services to  improve the operation of customers’ machinery and equipment, such as lubricants, seals, bearing maintenance tools and condition- monitoring equipment. The Company also manufactures mechanical power transmission components and assemblies, as well as  systems such as helicopter transmissions, high-quality alloy steel, bars and tubing to custom specifications to meet demanding  performance requirements and finished and semi-finished steel components. Timken’s global footprint consists of 58 manufacturing facilities, 10 technology and engineering centers, 14 distribution centers and  warehouses and nearly 21,000 employees. Timken operates in 30 countries and territories. Information required by this item is incorporated by reference to Note 14 – Segment Information in the Notes to the Consolidated  Financial Statements. The Company develops, manufactures, markets and sells products for friction management and power transmission, alloy steels and  steel components to many industries and customers. The Company does not have any sales to a single customer that are 10% or more  of total sales or segment sales. The Timken Company manufactures and manages global supply chains for two core product lines: anti-friction bearings and adjacent  mechanical power transmission components, as well as specialty steel and related precision steel components. Differentiation in these  two product lines is achieved by either: (1) product type or (2) the targeted applications utilizing the product. Bearings and Power Transmission.  Selection and development of bearings for customers’ applications and demand for high reliability  require engineering and sophisticated analytical techniques. Timken’s know-how, combined with high precision tolerance, proprietary  internal geometry and premium quality material, provide Timken bearings with high load-carrying capacity, excellent friction-reducing  qualities and long service lives. The uses for bearings are diverse and can be found in transportation applications that include passenger  cars and trucks, heavy trucks, helicopters, airplanes and trains. Ranging in size from precision bearings the size of a pencil eraser to  those roughly three meters in diameter, they also are used in a wide variety of industrial applications, ranging from paper and steel  mills, mining, oil and gas extraction and production, gear drives, health and positioning control, wind mills and food processing. Timken  manufactures or in some cases purchases the required components and then sells them assembled or as individual components in a  wide variety of configurations and sizes. In addition to bearings, Timken provides mechanical power transmission products, including  chains, augers, gear boxes, seals, lubricants, and related products and services. Tapered Roller Bearings . The tapered roller bearing is Timken’s original entrant to the anti-friction bearing segment. The tapered  rollers permit ready absorption of both radial and axial load combinations. For this reason, tapered roller bearings are particularly well- adapted to reducing friction where shafts, gears or wheels are used. Bearings generally consist of four components: (1) the cone or  inner race; (2) the cup or outer race; (3) the rollers, which roll between the cup and cone; and (4) the cage, which serves as a retainer  and maintains proper spacing between the rollers. THE TIMKEN COMPANY 1$^{ }$