Slide 1: First Quarter 2024 Earnings Call
First Quarter 2024 Earnings Call May 7, 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 Mike Felcher
Harold Bevis President & Chief Executive Officer Mike Felcher SVP & Chief Financial Officer 3
Slide 4: Opening Comments
Opening Comments ▪ Successful quarter, highlighted by year-over-year growth in volumes at profitable plants; some rationalized volume at underperforming plants; strong operational improvement of underperforming business areas, which is driving margin expansion; and continuation of new business wins
Slide 5: Financial Summary
Financial Summary Net Sales Adjusted EBITDA and ($millions) Adjusted EBITDA Margin ($millions) $127.1 $121.2 (Dollars in millions) Q1’23 Q1’24 $11.3 (4.6%) $8.1 +290 9.3% Net Sales $127.1 $121.2 6.4% bps Adjusted EBITDA $8.1 $11.3 Q1'23 Q1'24 Q1'23 Q1'24 Free Cash Flow ($3.7) $0.3 ▪ Rationalized som
Slide 6: Q1'24 Financial Results
Q1’24 Financial Results Sales (Dollars in millions, except per share data) Q1’23 Q1’24 Δ ▪ Volume: ($4M) rationalization at underperforming plants, Net Sales $127.1 $121.2 ($5.9) mostly offset by $3M growth at healthy plants; roughly flat ▪ Pricing: ~($3M) Q1 2023 end-of- Operating Income (Loss) ($
Slide 7: Power Solutions – Stamped Products: Q1'24 Highlights
Power Solutions – Stamped Products: Q1’24 Highlights Q1 Sales down 1.7%, or $0.9 million, vs. prior year ▪ Some year-over-year volume was rationalized as part of the Irvine, CA and Taunton, Net Sales Trend MA 2023 facility closures. ($millions) ▪ Strong demand from US electrical grid business. $49.1
Slide 8: Mobile Solutions – Machined Products: Q1'24 Highlights
Mobile Solutions – Machined Products: Q1’24 Highlights Q1 Sales down 6.4%, or $4.9 million, vs. prior year ▪ Rationalized some business at underperforming plants. Net Sales Trend ($millions) ▪ Some negative mix shift in retained business. $78.0 ▪ Improvement opportunities remain on certain dilutive
Slide 9: Cash Flow In Good Shape and Funding Reinvestment
Cash Flow In Good Shape and Funding Reinvestment (Dollars in millions, ▪ New business wins are 3x market growth rate, $80 million except leverage ratio) Q1’24 TTM Q1’24 in the last five quarters, with associated CapEx investment. Free Cash Flow $0.3 $15.7 ▪ Pushing into global leadership positions o
Slide 10: Operational Productivity Is Increasing and Improving NN's Cost Profile
Operational Productivity Is Increasing and Improving NN’s Cost Profile → Adjusted EBITDA per Headcount Increased 42% Since Q1’23 → Increasing Our Competitiveness TTM Adjusted EBITDA Quarterly Headcount* $50 ($millions) 4,000 $46 3,645 $45 $43 3,500 3,357 3,230 3,159 $41 3,087 $40 $39 $38 3,000 $35 2
Slide 11: NN's Organic Growth Program is Performing Well
NN’s Organic Growth Program is Performing Well ▪ In 2023, NN secured $63 million of new awards through 28 programs in five countries, which will require CapEx investment. In Q1’24, NN added another $17 million of new business awards, $80 million cumulative. ▪ Operating towards the higher end of our
Slide 12: Confirming and Tightening 2024 Outlook
Confirming and Tightening 2024 Outlook Guidance Metric Forecast Range Net Sales $485 – $505 million Adjusted EBITDA $48 – $54 million Free Cash Flow $10 – $15 million New Business Wins $55 – $70 million ▪ Vehicle innovation, vehicle production, and electrical grid-edge device markets are performing
Slide 13: Appendix
mNNS Appendix BEYOND RELIABLE.
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 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 16
Slide 17: Reconciliation of Operating Cash Flow to Free Cash Flow
Reconciliation of Operating Cash Flow to Free Cash Flow 17
Slide 18: Thank You
Investor & Media Contacts Joe Caminiti or Stephen Poe, Investors Tim Peters, Media NNBR@alpha-ir.com 312-445-2870 Thank You 18