Nn, Inc. · NASDAQ:NNBR
Nn — Investor Presentation (November 2014)
21 slides from Nn's investor presentation, Nov 18, 2014
Slide 1: Investor Presentation, November 19-20, 2014
Exhibit 99.1 Exhibit 99.1 Investor November Presentation 19-20, 2014
Slide 2: Forward Looking Statements
Forward Except of Private “assumptions”, each levels, captive customers, forward-looking acquisition ability For including, statements NN, additional ofof regulatory for Inc. Securities production, these Looking the but specific of we and and Company terms) future not make information the “target”,
Slide 3: Vision & Mission
Vision Our mission vision & Mission isistotobeprovide the leading high-quality manufacturer products of high-performance and superior customer precision service components. that continuously exceed our customers’ expectations while providing enhanced value for our stakeholders.
Slide 4: A History of Growth
A History Estimated Traded Global 25 Approximately Continuous Supplying 1980Metal Industrial NN in Corporation Erwin, manufacturing founded reach, onTN Veenendaal of revenue Nasdaq to Bearing1999Components2000 investment Company Molding Growth diversified Assets local 4,200 facilities (NNBR) of dept
Slide 5: Richard Holder, President & CEO
NN, Inc. Richard Highly Joins Held AlliedSignal Servedleadership NN10 successful D. President from years Holder andEaton positions inParker history USMC & CEO Corporation Hannifin at of US growing Airways, Corporation where profitable he held prior organizations several to joining leadership by Eato
Slide 6: NN Is a Global Leader in Precision Components
Metal Autocam Plastics Low Stable The Top Highly Few NN’s Global NN has is Autocam 3New global number Plastic in Bearing amarket now reach disaggregated a$700+ and precision existing Precision NN world top players Rubber &is of –Precision position Components 3million critical Rubber Global competito
Slide 7: The New NN: Precision Components Market Leader
The New Metal Steel Autocam Complex, Fuel Steering HVAC Transmissions Power Plastic Bearing Customsystems Balls Bearing tools &compressors molded seals systems Precision NN Rubber high Tapered –Components precision Global rubber Components Components Rollers Market seals components Cylindrical Plast
Slide 8: Global Footprint
Global Footprint —Metal Established Bearing globalComponents presence with —Autocam profitablePrecision operationsComponents in North America, —PlasticEurope, & Rubber Brazil Components and China —Corporate Headquarters
Slide 9: Megatrends
New1Capital Megatrends Tier markets. Offshore China growth. Rigorous and is now sourcing global Tier Cycle: the 2gas auto world’s isthe mileage changing suppliers manufacturing largest requirements asare market logistics concentrating world forare assure personal isbecoming coming growing on purchas
Slide 10: Megatrends: High Content Impact Technologies
Megatrends—High GDI MPG Content Impact Market Key Technologies Source: (1) (4) Regions/Markets (3) (2) HP Increase +Growth Based Per Diesel $54Vehicle needed (1) + on RelativeVCT/VVT >15 +IHS 17% to$89 Growth —20% on Automotive CAGR (1) base aengine global Multi-Speed +(1) Product $10 5-speed>+witho
Slide 11: GDI: Increased Precision Content
GDI: MPFI $6.00 2 per $60 Increased V6 16Precisioninjectors per Technology GDI will Fuel GDI vehicle have aV6 SystemAPC Injectors Turned vehicle Highrequires VERY Content Partmore pressurecontent: fuel long per 10-15+ pump fittings Vehicle precision, life: tighter years tolerances (MPFI lived for 30
Slide 12: Our Future Vision
Our Future $800+ $270 $145 Improving Metal Precision Plastic Established million Bearing million andMetal segment Rubber Vision: global inin from Components: revenue Components: revenue organic presence 2018 Components: operating from and with 13.5% acquisitions margins 12.0% adjacent profitable 8.5
Slide 13: Road to $800 Million
Road $Outpace European $800 Organic $700 3% Adjacent $500 $540 $600 5% $450 $400 $260 Acquisitions $300 $373 $0 $100 $200 2013 NNMillions per will $800 $390 million Base toYear $800M Growth be the Markets Economic 2018 $800 growing Market in Sales SP Recovery with revenue Expanded at 26%Focus CAGRan
Slide 14: The Engine: Product and Geography Mix
The Engine End Use Product 21% 9% 70% Geography 10% 3% 40% Electric 58% 16% 7% 100% E + Fuel Plastic 43% 6% Precision South Asia Components Metal 50% 11% Europe America Improved ngine Transmission New Product Systems Metal North Bearing 19% 7% & America Components 32% Motors Mix NN Rubber 51% balanc
Slide 15: Top Customers and End Markets
The 2% Iljin Timken Nexteer GKN Top Customers <1% Aerospace HVAC End Continental Hitachi Brose Denso Delphi TRW 6% 7% Other GM 87% 9% T + HILITE Cummins Emerson 3% (Copeland) SKF Schaeffler/ ZF 4% INA/FAG NTN/SNR 5% Consumer2% Fiat Vehicles Commercial Industrial General 8% Light 70% Diversified RW 1
Slide 16: NN Today and Future Revenue Mix
NN Today Mix 2014 Revenue 2018 Light 72% Truck Heavy 7% 3% Consumer Other 50% *Proforma Industrial General 25% AutoShift Light 15% Truck =16% Other & full $680M* $800M Future 2% year consolidated Vision revenue
Slide 17: Creating Corporate and Operational Excellence
Creating Corporate Redesigned and Operational New Level Functional Excellence Delivery: Branding Supply 3: Offset an Exceed Identity Quality: Financial Safety: Integrated website Top Chain Common Economic Down Customers’ One Drive Operations Drive and Company Strategy corporate customer aBusiness aC
Slide 18: Established and Adjacent Markets, Enhanced R&D
Established Adjacent Game Enhanced (e.g. spherical ball noise changing cells, markets R&D quality reduced 3 R&D rollers, robotics) manufacturing Efforts product) Centers weldedofcages) Excellence processes
Slide 19: Results in First 9 Months of Strategic Plan
Results In By Meanwhile, We NN,January September are Inc.in ofisthe 5of now Year the 2014, process ofNN a2014, Strategic $700 NN stock ofwe million announced updating price Plan had completed public has – the First its appreciated strategic company strategic 9 Months 4 acquisitions plan. plan 50% wi
Slide 20: Financial Strategy and Policy
Financial Build Maintain Cash 1) 2) 3) 4) Generate Improve Increase Expand Continue Debt Capex Stable Strategic flow upon repayment segment industrial market common above-market-average healthy to Strategy priorities: aacquisitions achieve pursue strong, mix gross leverage /dividends /aerospace/medi
Slide 21: Solid 2015 Financial Metrics
2015 Metrics Solid Revenue slowing Margins EBITDA continue Capital component Cash $25— *Debt Includes Repayment Available Updated core $35 Investment Spending Forecasted European remain to $690— $110— growth all Million of invest completed our Forecast for in$710 $120 $45— growth in tempered and lin