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## COMPArIsON OF FIvE-YEAr CuMulATIvETOTAl rETurN* 

Among The Timken Company, the S&P 500, the S&P 400 Industrials and the Bearing/Steel Peer Group Indices** 

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Assumes $100 invested on January 1, 2007, in Timken Common Stock, the S&P 500 Index, the S&P 400 Industrials and the Bearing/ Steel Peer Group Indices. 

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**Effective with fiscal year 2011, the custom bearing/steel peer group index has been replaced with the S&P 400 Industrials index because the Company believes it more accurately reflects a peer benchmark for the Company’s portfolio of businesses given Timken’s strategic initiatives to diversify beyond its heritage bearing and steel product offerings. For comparability, both peer indices have been shown. 

The line graph compares the cumulative total shareholder returns over five years for The Timken Company, the S&P 500 Stock Index, the S&P 400 Industrials Index and a custom peer group index that proportionally reflects Timken’s bearing and steel businesses. The S&P Steel Index comprises the steel portion of the peer group index. This index is comprised of AK Steel, Allegheny Technologies, Cliffs Natural Resources, Nucor and US Steel. The remaining portion of the peer group index is a self constructed bearing index that consists of five companies. These five companies are Kaydon, JTEKT, NSK, NTN and SKF Group. The last four are non-US bearing companies that are based in Japan (JTEKT, NSK, NTN), and Sweden (SKF Group). 

