Slide 1: NN, Inc. Second Quarter 2024 Earnings Call
NN, Inc. Second Quarter 2024 Earnings Call August 8, 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: Presenters: Harold Bevis and Chris Bohnert
Harold Bevis President & Chief Executive Officer Chris Bohnert SVP & Chief Financial Officer 3
Slide 4: Opening Comments
Opening Comments Transformation Plan Remains On Track, Delivering Results ▪ Profitability improvement is working - fourth consecutive quarter of year over year adjusted EBITDA growth ▪ Operational advancements are aiding business development ▪ Facility improvements continue; culture change is underw
Slide 5: 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 NN’s legacy demand is tracking to the broader Market reflecting an expectation of flat to modest market; NN new business win programs balanced growth in Global Veh
Slide 6: Leadership Enhancements
Leadership Enhancements Chris Bohnert, CFO Jami Statham, General Counsel ▪ Joined as CFO in June 2024 having ▪ Joined as GC in July 2024 previously served as an adviser to NN, Inc. ▪ Brings 18 years of corporate legal and ▪ Brings over 30 years of senior financial compliance experience with broad le
Slide 7: Quarterly Highlights
Quarterly Highlights Net Sales Adjusted EBITDA and ($millions) Adjusted EBITDA Margin ($millions) $13.4 (millions) Q2’23 Q2’24 $125.2 $10.5 $123.0 (1.8%) +250 10.9% bps 8.4% Net Sales $125.2 $123.0 Q2'23 Q2'24 Q2'23 Q2'24 Adjusted EBITDA $10.5 $13.4 Net Sales ▪ Unfavorable foreign exchange impacts o
Slide 8: Q2 2024 Financial Results
Q2 2024 Financial Results Net Sales (millions, except per share data) Q2’23 Q2’24 Δ ▪ Stable volumes with some rationalization actions; largely Net Sales $125.2 $123.0 ($2.2) offset by organic volume growth in other areas Operating Income (Loss) ($4.0) ($2.1) $1.9 ▪ Unfavorable FX impacts, partially
Slide 9: Power Solutions – Stamped Products: Q2'2024 Highlights
Power Solutions – Stamped Products: Q2’2024 Highlights Sales Up 4.3%, or $2.1 Million, From Prior Year Net Sales (+) Precious metals pricing pass-through of $1.4 million (also reflected in increased ($millions) A/R dollar balance) and inflation pricing (-) Lower volumes $97.1 $98.4 Profitability and
Slide 10: Mobile Solutions – Machined Products: Q2'2024 Highlights
Mobile Solutions – Machined Products: Q2’2024 Highlights Net Sales Sales Down 5.6%, or $4.3 Million, From Prior Year ($millions) (-) Exited specific unprofitable volumes at underperforming facilities (-) Contractual reduction in customer pricing $155.2 $145.9 (-) FX negatively impacted by $0.9 milli
Slide 11: Improved Profitability Setting Stage for Refinancing
Improved Profitability Setting Stage for Refinancing TTM Adjusted EBITDA Leverage* ($millions) $49.2 3.9x $46.3 $43.1 3.4x $40.9 3.2x 3.1x 3.2x 2.9x $38.2 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Pro-forma for sale of Lubbock Strategic Refinancing Process Underway – Will Help Acce
Slide 12: NN's Organic Growth Program is Performing Well
NN’s Organic Growth Program is Performing Well NN has Secured $97 Million of New Awards From January 2023 to June 2024 – Growth Program Remains on Track ▪ Increased opportunities through customer targeting, product development, quoting, and prototyping ▪ Advancing pipeline in higher-margin, higher-g
Slide 13: Medical Business: Growing and Building
Medical Business: Growing and Building Upsizing Goal to $100 Million Business ▪ Business is at ~$17 million sales rate now and increasing ▪ New business opportunities are increasing in size and frequency ▪ Evaluating small acquisitions NN Medical Now Entering “Phase 2” of Business Development ▪ Will
Slide 14: Reaffirming 2024 Outlook
Reaffirming 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 ▪ Reaffirming full-year 2024 outlook issued on July 2, 2024, post-planned sale of non-core facility ▪ Winning ne
Slide 15: Transformation: Delivering Results
Transformation: Delivering Results Goal Results Next Steps ▪ Have added and strengthened leadership talent across full organization – New Executive leadership to plant-level ▪ Selectively adding experienced team leaders where Leadership ▪ Strengthening customer relationships necessary, more to go ▪
Slide 16: Appendix
Appendix 16
Slide 17: 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 18: Reconciliation of GAAP Income (Loss) from Operations to Adjusted EBITDA
Reconciliation of GAAP Income (Loss) from Operations to Non-GAAP Adjusted Income (Loss) from Operations and Non-GAAP Adjusted EBITDA 18
Slide 19: Reconciliation of GAAP Net Income (Loss) to 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 19
Slide 20: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow 20
Slide 21: Thank You
Investor & Media Contacts Joe Caminiti or Stephen Poe, Investors Tim Peters or Emma Brandeis, Media NNBR@alpha-ir.com 312-445-2870 Thank You 21