Nn, Inc. · NASDAQ:NNBR

Nn — Q1 2025 Earnings Presentation

23 slides from Nn's earnings presentation, May 8, 2025

  1. Slide 1: 2025 Q1 Earnings

    Nw BEYOND RELIABLE 2025 Ol Earnings May 8, 2025

  2. 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

  3. Slide 3: Key Messages

    Key Messages End Market Demand & New Business Updating 2025 Guidance and 5-Year Goals ▪ Global automotive market remains resilient overall - softer than ▪ Reiterating 2025 guidance for adjusted EBITDA at $53 - $63 million expected in NA and EU, but China remains strong ▪ Reiterating 2025 guidance fo

  4. Slide 4: Key Metrics

    Key Metrics Q1’25 Results Comments Net Sales* $105.7M Flat Y/Y on proforma net sales; uncertainty in US market Gross Margin (as % of Sales) 16.9% Five-year goal is 19-20% Adjusted Operating Income $2.0M Increased $2.7M Y/Y Adjusted EBITDA $10.6M Reconfirming FY 2025 guidance of $53 - $63M Adjusted E

  5. Slide 5: Business Transformation & Pivot are On Track in 2025

    Business Transformation & Pivot are On Track in 2025 From 0 to 70% Complete in Seven Quarters 1. Enhance leadership to mirror and lead the new forward agenda New Leadership 90% "Group of 7" Adjusted EBITDA 2. Isolate and fix chronic underperforming areas – Q1 2024 Q1 2025 FY 2025 Goal sales declines

  6. Slide 6: Sales Growth & Pivot Program is Performing Well and On Track

    Sales Growth & Pivot Program is Performing Well and On Track ▪ Prospecting targets are by market, balanced to our asset profile, balanced between auto & non-auto, with targets by salesperson ▪ Adding people, NPI capabilities, assets, expanding at existing accounts, and gaining approved supplier stat

  7. Slide 7: New Business Program Update / Snapshot with Facts & Figures

    New Business Program Update / Snapshot with Facts & Figures Overall Program Results - January 2023 Through May YTD 2025 ▪ Value of new win programs since January 2023 (peak annual sales value): $160M ▪ # of new win programs won since January 2023: 363 ➢ 2023: Won 118 programs worth $64M # of non-aut

  8. Slide 8: Sales Growth / Pivot Example: NN Continues to Organically Grow its Medical Business

    Sales Growth / Pivot Example: NN Continues to Organically Grow its Medical Business ▪ NN is winning in the Extremities and Instruments markets ▪ Adding people, dedicated machines, gaining certifications, becoming an approved supplier, growing $40M pipeline, securing wins ▪ #1 Product in Q1 2025 is t

  9. Slide 9: Sales Growth / Pivot Example: New Business Driving NN Europe to Financial Turnaround

    Sales Growth / Pivot Example: New Business Driving NN Europe to Financial Turnaround → $6.7M of new wins in Q1 (peak annual sales) and >$50M of estimated total program value NN Europe team is successfully achieving its new wins objectives and its turnaround plan ▪ Leveraging NN’s Europe in-region in

  10. Slide 10: Operations Team Continues to Deliver its Cost Reduction Targets with Staff Right-Sizing

    Operations Team Continues to Deliver its Cost Reduction Targets with Staff Right-Sizing Being a Key Component → 25% increase in adjusted EBITDA / salaried employee over TTM → 16% decrease in net global headcount – hourly, indirect, salaried, SGA All Employees SG&A/Salaried Only Excludes sold Lubbock

  11. Slide 11: Working Capital Reduction Program

    Working Capital Reduction Program → Working capital has been reduced 20% or $21.6M over last two years → Down $4.8M vs. Q1 2024; targeting $5M reduction in Q2-Q3 2025 Working Capital Trend $175.0 Commentary $78.5 $74.3 $125.0 $68.0 $68.6 $69.6 $68.3 $69.6 $62.9 ▪ $106.4M in Q1 2023 down to $84.8M in

  12. Slide 12: Q1 2025 – NN Financial Results

    Q1 2025 – NN Financial Results As Reported Q1 2024 Pro Forma Adjustments Pro Forma ($millions) Q1'25 Q1’24 Δ Sale of Rationalized FX Total Q1'25 Q1’24 Δ Lubbock Volume Net Sales $105.7 $121.2 ($15.5) ($5.4) ($5.9) ($2.8) ($14.1) $105.7 $107.1 ($1.4) Adj. Operating Income $2.0 ($0.7) ($2.7) ($0.6) $0

  13. Slide 13: Power Solutions Segment – Q1 2025 Highlights

    Power Solutions Segment– Q1 2025 Highlights Net Sales Net Sales Net Sales: down ($4.7M), up $1.5M pro forma As Reported (Pro Forma) ▪ ($5.4M) impact of sale of Lubbock facility ($ millions) ($ millions) ▪ ($0.8M) of unfavorable foreign exchange impact ▪ $1.5M of net impact from volume / mix – primar

  14. Slide 14: Mobile Solutions Segment – Q1 2025 Highlights

    Mobile Solutions Segment – Q1 2025 Highlights Net Sales: down ($10.9M), down ($3.1M) pro forma Net Sales Net Sales ▪ ($5.9M) of 2024 rationalized business (planned decrease) ($ millions) (Pro Forma) ($ millions) ▪ ($3.0M) of lower auto volumes globally ▪ ($1.9M) of unfavorable foreign exchange impac

  15. Slide 15: Updated 2025 Outlook & Guidance

    Updated 2025 Outlook & Guidance Net Sales of $430 to $460 million ▪ Sales forecast has been decreased to be roughly flat to prior year due to economic uncertainties in the North American market ▪ Offset somewhat from SOPs occurring during 2025 from prior new business awards Key Assumptions ▪ Multipl

  16. Slide 16: NN's 5-Year Plan for Profitable Growth

    NN’s 5-Year Plan for Profitable Growth 2028 Goals Pathway to Achievement Near-Term Progress ▪ $40 million of net annual growth driven by $65 million of annual new awards and $25 Grow Organic Sales million of EOPs / walkaways plus M&A growth when the time is right Launching 120 programs to $600M ▪ As

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: 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

  19. Slide 19: 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 19

  20. Slide 20: 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 20

  21. Slide 21: Reconciliation of Operating Cash Flow to Free Cash Flow

    Reconciliation of Operating Cash Flow to Free Cash Flow 21

  22. Slide 22: Thank You

    Investor & Media Contacts Joe Caminiti or Stephen Poe NNBR@alpha-ir.com 312-445-2870 Thank You 22

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NN — Q1 2025 Earnings Presentation on 6ix