Slide 1: Third Quarter 2015 Earnings Release
Third Quarter 2015 Earnings Release November 4, 2015 Exhibit 99.2
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, and similar statements, are forwar
Slide 3: 3rd Quarter 2015
3rd Quarter 2015
Slide 4: Highlights of 3rd Quarter 2015
Highlights of 3rd Quarter 2015 Sales of $154.8M Acquisitions contributed $41.6M during the quarter Headwinds from Asia negatively impacted our Chinese, and European businesses in September CAFE related businesses continued to outperform Adjusted Earnings Per Share of $0.31 Includes the additional 7.
Slide 5: 3rd Quarter 2015 Financial Summary: Net Sales and Adjusted EPS
Q3 2014 Q3 2015 Adjusted Earnings Per Share Q3 2014 Q3 2015 Net Sales 23% growth year over year 3rd Quarter 2015 Financial Summary In Millions Issued 7.6M Share in Q3 2015 Adj. EPS on prior year weighted average shares = $0.40
Slide 6: 3rd Quarter 2015 Financial Summary: Margins
3rd Quarter 2015 Financial Summary Q3 2014 Q3 2015 Gross Margin Q3 2014 Q3 2015 Adjusted Operating Margin Margins continue to expand as expected despite end market headwinds 230 bps improvement over Q3 2014 resulting from continued improvements in the NN Operating System Gross Margin = Gross Profit
Slide 7: 3rd Quarter 2015 Financial Summary: Adjusted EBITDA and SG&A
3rd Quarter 2015 Financial Summary Q3 2014 Q3 2015 Adjusted EBITDA Q3 2014 Q3 2015 SG&A Prudent expense management driven by the NN Operating System Up 46% compared to Q3 2014 In Millions In Millions
Slide 8: Autocam Precision Components Group
Autocam Precision Components Group Q3 2014 Q3 2015 Net Sales Q3 2014 Q3 2015 Adjusted Operating Margin CAFE adoption rates continue to drive increased content and margin expansion $M
Slide 9: Metal Bearing Components Group
Metal Bearing Components Group Q3 2014 Q3 2015 Net Sales Adjusted Operating Margin Negative FX translation accounted for 74% of the decline in sales Q3 2014 Q3 2015 $M Despite headwinds from China and negative FX, operating margins were consistent with prior year
Slide 10: Plastic & Rubber Components Group
Plastic & Rubber Components Group Q3 2014 Q3 2015 Net Sales Adjusted Operating Margin Q3 2014 Q3 2015 $M
Slide 11: Third Quarter Summary
Third Quarter Summary Continued improvement in operating performance driven by the NN Operating System offset by China & Brazil Completed the follow-on equity raise in preparation for PEP acquisition Adjusted Operating Margin continued to expand on a year over year and sequential quarter basis CAFE
Slide 12: PEP / Financing Update
PEP / Financing Update Financing Update Term Loan Senior Notes Total Amount $525M $300M $825M Rate 5.75%2 10.25% 7.39%3 Maturity 2022 2020 Repricing Opportunity April 2016 October 2017 PEP Update1 LTM 9-30-15 Sales LTM 9-30-15 EBITDA EBITDA Margin 2016 Adjusted EPS Accretion4 $240M $69M 29% $0.40 -
Slide 13: Guidance
Guidance
Slide 14: Fourth Quarter Guidance – Inclusive of PEP
Fourth Quarter Guidance – Inclusive of PEP Fourth Quarter Commentary Net Sales $180M - $190M Headwinds from Asia & Brazil create challenging top line environment Adj. Op Margin 8.3% - 9.0% Driven by lower Q4 seasonal volume Adj. EBITDA $30M - $35M Includes partial quarter of PEP Adj. EPS $0.24 - $0.
Slide 15: 2015 and 2016 Guidance
Give the Guidance 2015 2016 Commentary Net Sales $665M - $675M $875M - $905M Sales growth of ~30% driven by PEP acquisition Adj. Operating Margin 8.7% - 9.0% 11.0% - 12.0% Driven by improvements in the NN Operating System & PEP acquisition Adj. EBITDA $104M - $109M $162.5M - $175M Adj. EPS1 $1.37 -
Slide 16: 2016 Guidance – Revenue Waterfall
Net Organic & Adjacent Sales growth of 4% - 5% in 2016 2016 Guidance – Revenue Waterfall Sales will grow ~30% in 2016 $875M - $905M In millions
Slide 17: 2016 Guidance – Adjusted EPS Waterfall
2016 Guidance – Adjusted EPS Waterfall $1.60 - $1.80 We remain focused on hitting our strategic targets
Slide 18: 2016 Summary
2016 Summary Sales growth of approximately 30% Strong organic and adjacent market growth of 10% - 11% Offset by 5% - 6% of attrition, price/mix and negative currency effects Adjusted earnings per share growth of 21% at midpoint of guidance 64% of our debt can be repriced in as short as 6 months Oper
Slide 19: Third Quarter 2015 Earnings Release
Third Quarter 2015 Earnings Release November 4, 2015