Nn, Inc. · NASDAQ:NNBR
Nn — Investor Presentation (December 2024)
17 slides from Nn's investor presentation, Dec 19, 2024
Slide 1: Investor Presentation December 2024
Investor Presentation December 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: 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 a few areas: Medical & Electrical markets, capacity in low-cost geogra
Slide 4: NN At A Glance
4 NN At A Glance *Revenue, EBITDA and Adjusted EBITDA above are 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 with sub goals of
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 ▪ Centers of excellence in engineering and manufacturing spanning four continents supporting regional requirements ▪ China Join Venture (“
Slide 6: NN's Markets are Healthy, Business On Track to Grow in 5 Primary End Markets
6 NN’s Markets are Healthy, Business 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 O
Slide 7: NN's 5-Year Plan for Growing Sales and Profits
7 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 8: Power Solutions: Stamped & Assembled Metal Products
8 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 9: Mobile Solutions: Machined Metal Products
9 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 10: Transformation Plan Making Solid Progress
2. “Group of 7” money-losing plants being fixed, adj. EBITDA dramatic YTD improvement 10 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 11: Organic Growth Program Continues to Deliver Growth
Organic Growth Program Continues to Deliver Growth 11 NN goal is $325M in new awards over 5 years – on track through first 7 quarters at $113M 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 Sta
Slide 12: Trends We See: China Making Low-Cost Cars for Domestic and Export Markets
12 Trends We See → China Making Low-Cost Cars for Domestic and Export 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 fo
Slide 13: Trends We See: Tariffs are good for NN
13 Trends We See → Tariffs are good for NN US has tariffs on certain auto parts and completed passenger vehicles -> now seeking to further protect US-based production Tariffs take aim at the expansion of low-cost alternative supply from China, Mexico, & Canada ▪ NN has ~$120 million of tariff-protec
Slide 14: Trends We See: Steering Systems
14 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 15: 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* 15 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 16: 2024 Guidance & Looking Ahead to 2025
16 2024 Guidance & Looking Ahead to 2025 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 FY’25 First Glance – Returning to Growth ▪ Expect 2025 sales to be higher on both a GAAP and pro
Slide 17: Thank You
Thank You 17 Joe Caminiti or Stephen Poe, Investors NNBR@alpha-ir.com 312-445-2870 Investor Contacts