Slide 1: Q4 & FY'23 Earnings Presentation
Q4 & FY’23 Earnings Presentation NN Inc. | March 12, 2024
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: Results As Expected, Carrying Momentum Into 2024
Results As Expected, Carrying Momentum Into 2024 Launched business transformation in May 2023; early results have been accomplished largely with existing team. Net Sales Adjusted EBITDA • Initiated culture change: (1) increased accountability to outcomes, (2) more aggressive new business agenda, and
Slide 4: Transformation On Track
Transformation On Track Status Goal Progress and 2024 Actions • Adding talent in sales, engineering, procurement, and manufacturing • Reducing headcount in underperforming areas 1. Strengthen Leadership & • Bolstering operational processes and systems infrastructure Accountability • Strengthening te
Slide 5: $63 Million of New Business Awards
$63 Million of New Business Awards FY’23 New Business Awards: Driving Momentum NBW Annual Peak Value • Acceleration of new business win (NBW) program brought strong results in 2H’23, (millions) delivering record performance in FY’23 • Over 60 program awards in steering systems, electric motors, comm
Slide 6: New Market – Electrical Connectors and Shields
New Market – Electrical Connectors and Shields Overt market entry into desirable new market • Prime market for NN’s expertise in high-precision engineered metal products, plating, and knowledge of electrical components • Deepening relationships with market’s largest connector and wire harness manufa
Slide 7: Q4'23 Financial Results Were As Expected
Q4’23 Financial Results Were As Expected (Dollars in millions, except per share data) Q4’22 Q4’23 Δ Sales Drivers • Volume: ~($7M) Net Sales $118.0 $112.5 (4.6%) • Pricing: ~$5M • Taunton & Irvine Closures: ~($3M) Operating Income (Loss) ($11.0) ($7.9) $3.1 Adjusted Operating Income (Loss) ($3.3) ($
Slide 8: FY'23 Financial Results Were As Expected
FY’23 Financial Results Were As Expected Sales Drivers (Dollars in millions, except per share data) 2022 2023 Δ • Volume: ~($32M) Net Sales $498.7 $489.3 (1.9%) • Pricing: ~$31M • Taunton & Irvine Closures: ~($6M) Operating Income (Loss) ($21.1) ($21.8) ($0.7) • Customer Settlements: ~($2M) • FX: ~(
Slide 9: Mobile Solutions: Machined Products - Q4'23 Highlights
Mobile Solutions: Machined Products - Q4’23 Highlights Q4 Sales up 1.8%, or $1.2 million, from prior year (+) Pricing (+) Foreign exchange effects (-) Volume Q4 Profitability (+) Improved product mix and operating performance within several facilities (+) Benefits of right-sizing indirect labor supp
Slide 10: Power Solutions: Stamped Products - Q4'23 Highlights
Power Solutions: Stamped Products - Q4’23 Highlights Q4 Sales down 13.4%, or $6.7 million, from prior year (-) Aerospace and defense sales decline due to Irvine, CA and Taunton, MA facility closures (-) General industrial market and commercial truck component sales decline due to broader market soft
Slide 11: Balance Sheet Optimization Plan
Balance Sheet Optimization Plan Strong Organizational Commitment Trailing 12 Month Free Cash Flow (millions) $20 • Implemented much tougher stance on balancing cash inflows with outflows, $16.9 reducing leverage, and increasing liquidity $15 $11.7 o Showing strong early results $10 o 3.20x leverage,
Slide 12: 2024 Outlook: Transformation Impacts Will Continue to Build
2024 Outlook: Transformation Impacts Will Continue to Build 2024 • Net sales flat to low single digit % increase; inclusive of impact from (millions) Outlook shedding unprofitable business; not enough predecessor wins in 2022 and early 2023 Net Sales $485 - $510 • Adjusted EBITDA growth due to cost-
Slide 13: Appendix
Appendix NN Inc., Q4’23 and Full-Year Earnings Presentation | March 2024 13
Slide 14: 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 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., Q4’23 and Full-Year Earnings Presentation | March 2024 15
Slide 16: 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., Q4’23 and Full-Year Earnings Presentation | March 2024 16
Slide 17: 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., Q4’23 and Full-Year Earnings Presentation | March 2024 17
Slide 18: 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., Q4’23 and Full-Year Earnings Presentation | March 2024 18
Slide 19: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow NN Inc., Q4’23 and Full-Year Earnings Presentation | March 2024 19
Slide 20: Thank You
Investor & Media Contacts Joe Caminiti or Stephen Poe, Investors Tim Peters, Media NNBR@alpha-ir.com 312-445-2870 Thank You NN Inc., Q4’23 and Full-Year Earnings Presentation | March 2024 20