Slide 1: Q3'23 Earnings
Q3’23 Earnings NN Inc. | November 7, 2023
Slide 2: Forward Looking Statement & Disclosures
Forward Looking Statement & Disclosures Except for specific historical information, many of the matters discussed in this press release may express or imply projections of revenues or expenditures, statements of plans and objectives or future operations or statements of future economic performance.
Slide 3: Q3'23 Business Highlights
Q3’23 Business Highlights ▪ First full quarter under new leadership showed immediate and significant improvement in results - - $14.5 million adjusted EBITDA and $11.3 million of free cash flow Began strengthening leadership and accountability with additions of Tim $124.4M $14.5M French, Chief Opera
Slide 4: Transformation Plan Is Underway
Transformation Plan Is Underway Reengineered Organizational Program to Grow Sales, Profits, Free Cash Flow, and Shareholder Value Status Goal Q3 Progress • Supplemented executive team with the additions of Tim French, COO 1. Strengthen Leadership & and David Harrison, CPO Accountability • Strengthen
Slide 5: New Business Wins: $37M Q3 YTD Gross
New Business Wins: $37M Q3 YTD Gross 2023 YTD New Business Wins (NBW): Driving Momentum NBW Annual Peak Value ▪ Over 60 program awards in steering systems, electric motors, commercial (millions) vehicles, passenger vehicles, air bag systems, battery management, defense, and vehicle sensors $37 $33 ▪
Slide 6: Strategic Win: Connector Shields For Top Electrical Harness Maker Going Onto Well-Known EV Platform
Strategic Win: Connector Shields For Top Electrical Harness Maker Going Onto Well-Known EV Platform NN’s knowhow in complicated, multi-station progressive die stampings recently supported the development of six unique connector shields and other related components. These are used to prevent Electro
Slide 7: Active Proposals – Early Success Increasing
Active Proposals – Early Success Increasing Pipeline Optimizing organization and processes to move faster, Pipeline Update already showing results in key targeted markets ▪ Aggressively quoting open capacity, and revising open quotes ▪ 43% growth sequentially and 60% growth year-over-year for EV- Hy
Slide 8: Q3'23 Financial Results
Q3’23 Financial Results (Dollars in millions, except per share data) 2022 2023 Δ Sales Drivers ▪ Pricing: ~$6M Net Sales $127.3 $124.4 -2.2% ▪ Volume: ~($11M) ▪ FX: $0.8M Operating Income (Loss) ($2.1) ($2.7) ($0.6) ▪ Customer settlement: $1.1M Non-GAAP Adjusted Operating Income $2.5 $3.6 $1.1 Non-G
Slide 9: Mobile Solutions: Q3'23 Highlights
Mobile Solutions: Q3’23 Highlights Net Sales Trends 2022 (millions) Sales up 3.7%, or $2.8 million, from prior year 2023 $234.1 $225.5 (+) Pricing (+) Customer settlement in ‘23 (+) Foreign exchange effects (−) Volume down ~$3 million $76.1 $79.0 Profitability (+) Customer settlement in ‘23 Third Qu
Slide 10: Power Solutions: Q3'23 Highlights
Power Solutions: Q3’23 Highlights Net Sales Trends 2022 (millions) Sales down 11.0%, or $5.6 million, from prior year 2023 (−) Volume down ~$8 million $155.2 − Auto component sales primarily due to two key customers losing market share $142.6 − General industrial component sales due to lower market
Slide 11: Cash Flow & Working Capital
Cash Flow & Working Capital ▪ Free cash flow (FCF) of $17M for trailing 12-month period ▪ Will be FCF positive for the full-year while maintaining historical capital investment rate ▪ Remain focused on consistent cash flow moving forward ▪ Four consecutive quarters of improved working capital turns
Slide 12: Balance Sheet & Liquidity
Balance Sheet & Liquidity Increased Liquidity (millions) Revised Capital Allocation Program $50 $40 ▪ Implemented much tougher stance on balancing cash $28.7 $30 $29.7 inflows with outflows, reducing leverage and $20 increasing liquidity $1.5 $9.8 $10 $12.8 $12.0 • Showing strong early results $0 Q2
Slide 13: 2023 Outlook: Transformation Taking Place
2023 Outlook: Transformation Taking Place Outlook Reflects: ▪ Net sales mid-point slightly lower, will continue to fix or shed unprofitable business 2023 ▪ Adjusted EBITDA mid-point slightly lower, in line with (millions) Outlook volume ▪ Free cash flow mid-point raised based on strong Q3’23 perform
Slide 14: Appendix
Appendix NN Inc., Q3‘23 Earnings | November 2023 14
Slide 15: 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 NN Inc., Q3’23 Earnings | November 2023 15
Slide 16: 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 NN Inc., Q3’23 Earnings | November 2023 16
Slide 17: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow NN Inc., Q3’23 Earnings | November 2023 17
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
Slide 19: Thank You
Investor & Media Contacts Joe Caminiti or Alec Steinberg, Investors Tim Peters, Media NNBR@alpha-ir.com 312-445-2870 Thank You NN Inc., Q3‘23 Earnings | November 2023 19