Slide 1: Sidoti Micro Cap Conference Investor Presentation January 2025
Sidoti Micro Cap Conference Investor Presentation January 2025
Slide 2: Forward-looking statements
Except for specific historical information, many of the matters discussed in this presentation may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance. These statements may discuss goals, inten
Slide 3: Investment Highlights: Enterprise Transformation Underway and Showing Good Results
Investment Highlights: Enterprise Transformation Underway and Showing Good Results ▪ Leveraging current footprint and capabilities to drive organic growth and more wins, supported by Ops improvements ▪ Investing aggressively into medical & electrical markets, adding capacity in low-cost geographies
Slide 4: NN At A Glance
4 NN At A Glance *Trailing Twelve Months as of 9/30/24 ▪ Best-In-Class maker of high-precision, complex metal products ▪ Achieved $136 million in new business wins from 2023 to 2024 ▪ Targeting $65 million in annual wins as part of 5-year growth plan ▪ Supplemental goals include $50 million in Medic
Slide 5: Globally Competitive Operational Footprint
5 ▪ Close proximity to customers in all major markets to meet local needs ▪ Low-cost country footprint aligned with strategy and facility optimization initiative ▪ Localized production for domestic markets is a competitive advantage and helps insulate NN from tariff risks ▪ Centers of excellence in
Slide 6: NN's 5-Year Plan for Growing Sales and Profits
6 NN’s 5-Year Plan for Growing Sales and Profits ▪ Organic sales growth of 3-4% on base business ▪ Higher growth targeted in medical and electrical systems ▪ Strategic acquisitions to accelerate strategy when timing is right ▪ Expanding new business program in several new areas: ▪ Connect & Protect
Slide 7: 5-Year Plan to Grow Business to $650 million
7 5-Year Plan to Grow Business to $650 million Program Goal Status New Wins Program $325 million over 5 years Achieved $136 million of new wins in first 2 years • Performing in-line with $40 million annual new wins growth (net) goal • Based on $65 million annual new wins target & ($25) million of EO
Slide 8: NN's Markets are Healthy; On Track to Grow in 2025
8 NN’s Markets are Healthy; On Track to Grow in 2025 Primary End Market Outlook End Market ~% of NN Revenue Market Indicators +/- NN’s Outlook vs. Market Global Passenger Vehicle 40% Global light vehicle market production is growing slightly; global demand patterns undergoing change China OEs have e
Slide 9: Power Solutions: Stamped & Assembled Metal Products
9 Power Solutions: Stamped & Assembled Metal Products Provides: Customers with precision stamped parts, electroplated parts, assembly capabilities to help co- design and produce safe, durable, and high-quality mission-critical components across a flexible volume/mix platform End Markets: Electric Gr
Slide 10: Mobile Solutions: Machined Metal Products
10 Mobile Solutions: Machined Metal Products Provides: Customers with precision machining and finishing capabilities to develop 6 sigma product designs with unmatched speed to market and advanced in-house precision engineering capabilities End Markets: Vehicles, (ICE/BEV/HEV), Industrial, and Medica
Slide 11: Transformation Plan Making Solid Progress
2. “Group of 7” money-losing plants being fixed, Adj. EBITDA dramatic YTD improvement 11 50% 40% 50% 40% 60% Fix Sales & Grow the Company Deleverage & Refi Debt Expand Margins Fix Unprofitable Areas New Leadership Q3’23 YTD Q3’24 YTD ($8.4) ($0.8) Q3’23 YTD % Q3’24 YTD % Mobile increased 11.4% 13.1%
Slide 12: Organic Growth Program Continues to Deliver Growth
Organic Growth Program Continues to Deliver Growth 12 Goal is $325M in new awards over 5-year span – on track through first 8 quarters at $136M of new awards ▪ Steering system wins in China market with NN’s most advanced products ▪ Continued focus on Electrical and Medical end markets, as well as st
Slide 13: Tariffs are Good for NN but Not Counting on Them
13 Tariffs are Good for NN but Not Counting on Them US has tariffs on certain auto parts and completed passenger vehicles → Trump seeking further protection ▪ US auto part business plan focus is to maintain market positions but not overly invested ▪ Tariffs action should strengthen NN’s US automotiv
Slide 14: Deleveraging and Fixing Balance Sheet is a Focus Area
3.9x 3.4x 3.2x 3.1x 3.2x 3.0x Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Leverage* 14 Deleveraging and Fixing Balance Sheet is a Focus Area (*) Leverage multiple defined as net debt / trailing twelve month adjusted EBITDA Strategic Refinancing Process Continues – Will Help Accelerate Transformation and Fut
Slide 15: 2025 Outlook Returning NN to Y/Y growth
15 2025 Outlook Returning NN to Y/Y growth $460 million - $480 million Net Sales Stronger margins + cost-out benefit $53 million - $63 million Adjusted EBITDA On-track w/ 5-year plan $65 million New Business Wins • NN has begun its forward growth trajectory → ending multi-year stagnation • Organic g
Slide 16: Thank You
Thank You 16 Joe Caminiti or Stephen Poe, Investors NNBR@alpha-ir.com 312-445-2870 Investor Contacts
Slide 17: Non-GAAP financial measures
17 The Company discloses in this presentation the non-GAAP financial measures of adjusted income (loss) from operations, adjusted EBITDA, adjusted net income (loss), adjusted net income (loss) per diluted share, free cash flow and net debt. Each of these non-GAAP financial measures provides suppleme
Slide 18: Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA
Reconciliation of Net Income (Loss) to Non-GAAP Adjusted EBITDA 18 (1) Personnel costs include recruitment, retention, relocation, and severance costs (2) Facility costs include costs of opening / closing facilities and relocation / exit of manufacturing operations (3) Non-GAAP adjusted EBITDA margi
Slide 19: Trends We See: Steering Systems
19 Trends We See → Steering Systems Electric steering systems continue to present content rich, powertrain-agnostic opportunities globally Quality, Innovation and Cost continue to drive sourcing to NN Inc. ▪ Higher torque outputs in smaller packaging by selective material science ▪ Noise vibration a
Slide 20: Trends We See: China Making Low-Cost Cars for Itself and Non-US Markets
20 Trends We See → China Making Low-Cost Cars for Itself and Non-US Markets China's largest markets – China, Russia, Latin America, Middle East and parts of Europe. Largely blocked from US, Canada, India, Turkey, and Brazil. NN has been in China in over 20 years om both auto and medical markets for