Nn, Inc. · NASDAQ:NNBR
Nn — Merger or Acquisition (April 2018)
15 slides from Nn's merger presentation, Apr 3, 2018
Slide 1: Paragon Medical Acquisition
Paragon Medical Acquisition Exhibit 99.2
Slide 2: Forward looking statements
Forward looking statements Forward Looking Statements: With the exception of the historical information contained in this presentation, the matters described herein contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act
Slide 3: Transaction Overview
Transaction Overview Transaction Value Timing Conditions Transaction Details $375 million; 9.3x 2018 Estimated EBITDA multiple* Expected to close during the second quarter, 2018 Subject to certain regulatory approvals and customary closing conditions Synergy Plan - $33M expected over 3 years Year 1
Slide 4: Strategic Rationale
Strategic Rationale Paragon acquisition aligns with NN’s long-term strategy Strategic Priorities Paragon Acquisition Build a Diversified Business Market Segments Counter Cyclical Mix Comprehensive Geographic Footprint Fills out NN Life Sciences portfolio Provides counter-cyclical balance NN Life Sci
Slide 5: Paragon Medical Overview
Paragon Medical Overview Over 350,000 sqft Manufacturing Space ~1,300 Employees 23% of Sales 33% of Sales 44% of Sales
Slide 6: Strategic Impact of Paragon on Life Sciences
Strategic Impact of Paragon on Life Sciences Life Sciences Strategic Imperatives 2018E revenue - $300M1 Expands finished device Product Offerings Balance Product Portfolio Geographic Extension Balance Customer Mix World Class Quality & Reg. Enhance Engineering Services 1:Based on 2018 full year guid
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Combined Life Sciences Portfolio Finished Devices Orthopedics Surgical Tools Spine Extremity Endoscopic Drug Delivery Delivery Systems Full Market Participate Broad Market Participate Market Participate Strategic Market Foothold Not a Market Participant
Slide 8: Life Sciences Transformed
Life Sciences Transformed Geographic Mix Customer Mix Revenue $301M Gross Margin32% (Pre-Synergies) Adj. Operating Margin18% (Pre-Synergies) Adj. EBITDA$70M (Pre-Synergies) 2018 Estimated Financial Profile1 Revenue Breakdown Comprehensive Product Portfolio Strategic Significance Drives growth thru d
Slide 9: NN Inclusive of Paragon
NN Inclusive of Paragon
Slide 10: Balanced Divisional Portfolio
Balanced Divisional Portfolio Pre-Paragon 2018E Divisions as a % of Revenue1 Post Paragon 2018E Divisions as a % of Revenue2 Pure Play Medical Device Acquisition 1: Based on 2018 full year guidance, assumes Bridgemedica acquisition occurred 1-1-18 2: Based on 2018 full year guidance, assumes Bridgem
Slide 11: A Diversified Industrial Business
A Diversified Industrial Business 66% Diverse Portfolio 70% Diverse Portfolio 77% Diverse Portfolio 2018E End Markets as a % of Free Cash Flow* 2018E End Markets as a % of EBITDA* 2018E End Markets as a % of Revenue* Aerospace & Defense CAFE Technology Medical General Industrial Automotive Electrica
Slide 12: Strategic Global Footprint
Strategic Global Footprint 52 Facilities Worldwide E - Estimated *Based on 2018 full year guidance, assumes Bridgemedica & Paragon acquisitions occurred 1-1-18 Pre-Paragon 2018E Geographic Revenue Mix* Paragon 2018E Geographic Revenue Mix Combined Business 2018E Geographic Revenue Mix*
Slide 13: Balanced Customer Base
Balanced Customer Base More balanced customer mix 3 new Life Sciences customers enter top 10 No Customer greater than 8% Top 10 now less than 50% of sales
Slide 14: A Balanced, Diversified Industrial
A Balanced, Diversified Industrial Geographic Mix Top 5 Customer Mix Revenue $860M Gross Margin29% Adj. Operating Margin14% Adj. EBITDA$173M 2018 Estimated Financial Profile1 Revenue Breakdown Economically Balanced & Predictable Earner Strategic Significance Accretive to organization day 1 Drives to
Slide 15: Engineered Solutions
Engineered Solutions Inspired by i{}/ovation