Nn, Inc. · NASDAQ:NNBR
Nn — Gabelli Funds 48th Annual Automotive Symposium (November 2024)
22 slides from Nn's conference presentation, Nov 4, 2024
Slide 1: Gabelli Funds: 48th Annual Automotive Symposium
Gabelli Funds: 48th Annual Automotive Symposium November 4th, 2024
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: NN At A Glance
3 NN At A Glance (1) Trailing Twelve Months as of 9/30/24 • Best-In-Class maker of high-precision, complex metal products • Achieved $113 million in new business wins from Q1’23 – Q3’24; goal is $65 million wins per year for next 5 years. • Transforming revenue and margin profile • Targeted markets
Slide 4: NN Provides a Strong Growth Play in Global Auto Market
4 NN’s Provides a Strong Growth Play in Global Auto Market for both Geographic Shifts and Product Shifts Above-market growth potential Global trends favor NN’s capabilities Unique view into industry direction Carryover into Other End Markets • Changes underway in global auto market favor NN’s histor
Slide 5: NN's Markets Healthy, Business On Track
5 NN’s Markets Healthy, Business On Track Primary End Market Outlook End Market ~% of NN Revenue Market Indicators +/- NN’s Outlook vs. Market Global Passenger Vehicle 40% Global light vehicle production is flat; global demand patterns undergoing change China market significantly outpacing US/EU in
Slide 6: Globally Competitive Operational Footprint
6 • Close proximity to customers in all major markets to meet local needs • Low-cost country footprint aligned with strategy and facility optimization initiative • Centers of excellence in engineering and manufacturing spanning four continents supporting regional requirements • China Join Venture (“
Slide 7: Power Solutions: Stamped & Assembled Metal Products
7 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 8: Mobile Solutions: Machined Metal Products
8 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 Medical
Slide 9: Trends We See: Light Vehicle Production
9 Trends We See → Light Vehicle Production 2024 2025 2026 2027 LV Production 16.0 16.0 16.5 16.6 16.0 16.0 16.5 16.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 P ro d u c ti o n V o lu m e ( m il li o n s) North America Light Vehicle Production Forecast 2024 - 2027 Market Overview ▪ Growing slight
Slide 10: Macro Theme: China is Growing Fast with High-End Products
• Expanding in China from 3 plants to 4 plants, installing over 300 new machines to make next-gen products. Have been in China for decades with over 1,000 employees • Clear trends as OEMs and Tier 1’s advance product solutions and increase Chinese production • China is among NN’s best plants in cost
Slide 11: Trends We See: Steering Systems
11 Trends We See → Steering Systems (*) NN Estimate Quality, Innovation and Cost continue to drive sourcing to NN Inc. ▪ Higher torque outputs in smaller packaging by selective material science ▪ Noise vibration and harshness (NVH) optimizations through DFM Input ▪ Efficiency test results = reduced
Slide 12: Trends We See: Electric Vehicle Shielding & Connectors
12 Trends We See → Electric Vehicle Shielding & Connectors High Voltage Electrical systems within Hybrid and Electric Vehicles provides growth opportunities through multiple applications in the vehicle Quality, Innovation and Cost remain critical despite demanding requirements: ▪ Voltage requirement
Slide 13: Electrical Connector Shielding is a Growing Market
13 Electrical Connector Shielding is a Growing Market NN is a dominant global supplier of custom EMI Shields in EV, Industrial, and Consumer Electronics NN shields exceed customer expectations in craftmanship, speed to market, through using our global manufacturing footprint Why use EMI Shields? ▪ S
Slide 14: Trends We See: Rear Wheel Steering
Rear Wheel Steering (RWS) Advantages ▪ Unique and safety-related improvements in vehicle handling ▪ Reduced brake distance on surfaces of varying friction ▪ Improved agility at low speeds and in evasive maneuvers ▪ Improved trailer stabilization ▪ Increased comfort in automated driving mode ▪ Econom
Slide 15: New Market for NN: Orthopedic Implant Parts
15 New Market for NN: Orthopedic Implant Parts Joint Replacement Implants – Early success in targeted Medical market product innovation Participating in the Joint Replacement market* Significant global opportunity, expected to grow 6% in 2024 Largest segment in orthopedics; 36% of $59B global market
Slide 16: Organic Growth Program Continues to Perform
Organic Growth Program Continues to Perform 16 NN Has Now Secured $113 Million of New Awards from Q1’23 to Q3’24 – Growth Program Gaining Strength ▪ Strong wins continue in China market with NN’s top, highest-quality products ▪ Continued focus on Electrical end markets, Medical end markets, Stamped
Slide 17: Deleveraging Also 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* 17 Deleveraging Also a Focus Area (*) Leverage multiple defined as net debt / trailing twelve month adjusted EBITDA Strategic Refinancing Process Continues – Will Help Accelerate Transformation and Future Growth ▪ Leverage h
Slide 18: Transformation Plan Making Solid Progress
2. “Group of 7” money-losing plants being fixed, adj. EBITDA dramatic YTD 18 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% Power* incr
Slide 19: New Approach to Winning Future Business
• Leveraging current footprint and capabilities to drive organic growth and more wins, supported by Ops improvements • Investing aggressively into a few areas: Medical & Electrical markets, capacity in low-cost geographies • Growing in China for Chinese market, and low-cost export markets New Approa
Slide 20: Appendix
Appendix 20
Slide 21: FY2024 Outlook
21 FY’2024 Outlook Guidance Metric Forecast Range Net Sales $465 – $485 million Adjusted EBITDA $47 – $51 million Free Cash Flow $8 – $12 million New Business Wins $55 – $70 million ▪ Maintaining full-year 2024 outlook; subject to end market production ▪ 2025 is shaping up to reflect sales Y/Y growt
Slide 22: Thank You
Thank You 22 Joe Caminiti or Stephen Poe, Investors NNBR@alpha-ir.com 312-445-2870 Investor Contacts
NN — Gabelli Funds 48th Annual Automotive Symposium (November 2024) on 6ix