Nn, Inc. · NASDAQ:NNBR
Nn — Q3 2024 Earnings Presentation
19 slides from Nn's earnings presentation, Oct 31, 2024
Slide 1: NN, Inc. Third Quarter 2024 Earnings Call
NN, Inc. Third Quarter 2024 Earnings Call October 31, 2024
Slide 2: Forward Looking Statement & Disclosures
Forward Looking Statement & Disclosures 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. T
Slide 3: Harold Bevis and Chris Bohnert
Harold Bevis President & Chief Executive Officer Chris Bohnert SVP & Chief Financial Officer 3
Slide 4: Overall Comments
Overall Comments ▪ Accelerating Mobile transition alongside temporary NA auto market slowness • Initiating another plant closure and another round of cost reductions – goal is for NA to be 10% adjusted EBITDA • Successfully transitioning Auto business from NA and ICE-centric to be balanced with Chin
Slide 5: Transformation Plan Making Solid Progress
Transformation Plan Making Solid Progress Transformation ~50% Complete After 5 Quarters New Leadership 60% 1. Cemented Top Leadership • Still strengthening Medical, Electrical Grid, Stamped products, & select plants ($millions) Q3’23 YTD Q3’24 YTD 2. “Group of 7” money-losing plants Fix Unprofitable
Slide 6: NN's Markets Healthy, Business On Track
NN’s Markets Healthy, Business On Track Primary End Market Outlook End Market ~% of NN Revenue Market Indicators +/– NN’s Outlook vs. Market Global light vehicle market sales in recovery; Expanding capacity in China to make highest global demand remains mixed value products; steering, braking, and f
Slide 7: Organic Growth Program Continues to Perform
Organic Growth Program Continues to Perform 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 pro
Slide 8: New Product: Rear Wheel Steering (RWS) Components
New Product: Rear Wheel Steering (RWS) Components Rear Wheel Steering (RWS) Advantages Global RWS market size and forecast ($100M USD) ▪ Unique and safety-related improvements in vehicle handling ▪ Reduced brake distance on surfaces of varying friction ▪ Improved agility at low speeds and in evasive
Slide 9: Quarterly Financial Highlights
Quarterly Financial Highlights Proforma Base As Reported Q3’23 Adjustments Business Performance ($millions) Q3’23 Q3’24 Δ Rationalized Customer Precious Lubbock FX Total Q3’23 Q3’24 Δ Volume Settlement Metals Net Sales $124.4 $113.6 ($10.8) ($5.6) ($2.4) ($1.1) - ($1.1) ($10.2) $114.2 $113.6 ($0.6)
Slide 10: Power Solutions – Stamped Products: Q3'2024 Highlights
Power Solutions – Stamped Products: Q3’2024 Highlights Proforma Net Sales ($millions) New Business Wins of $3.4 million in Q3’24 (+) Increasing level of opportunities, segment pipeline is ~$230 million $141.3 $142.6 (+) Adding additional specialists in Electrical Grid and Medical $42.9 $45.5 $125.3
Slide 11: Mobile Solutions – Machined Products: Q3'2024 Highlights
Mobile Solutions – Machined Products: Q3’2024 Highlights Proforma Net Sales New Business Wins continue to be strong ($millions) $234.1 (+) Over $50 million won in LTM, and $11.5 million in Q3’24 $216.6 (+) Winning with our best products (+) Turnarounds of underperforming plants helping $79.0 $70.7 $
Slide 12: Deleveraging Continues
Deleveraging Continues Leverage* 3.9x 3.4x 3.2x 3.1x 3.2x 3.0x Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Strategic Refinancing Process Continues – Will Help Accelerate Transformation and Future Growth ▪ Leverage has meaningfully declined Y/Y – reflecting improved adjusted EBITDA, strategic divestiture of
Slide 13: FY'2024 Outlook
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 ▪ Winning new business at strong rate; targeting p
Slide 14: Appendix
Appendix 14
Slide 15: Non-GAAP Financial Measures Footnotes
Non-GAAP Financial Measures Footnotes 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 f
Slide 16: Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted EBITDA
Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA 16
Slide 17: Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss)
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss) and GAAP Net Income (Loss) per Diluted Common Share to Non-GAAP Adjusted Net Income (Loss) per Diluted Common Share 17
Slide 18: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow 18
Slide 19: Thank You
Investor & Media Contacts Joe Caminiti or Stephen Poe NNBR@alpha-ir.com 312-445-2870 Thank You 19