NN : Investor Presentation – Sidoti Small-Cap Investor Conference

Published: 2025-03-20 08:28:05 ET NNBR

Sidoti March Small Cap

Conference Presentation

March 2025

Investment Highlights: Enterprise Transformation Underway and Showing Good Results

Make Critical Precision Parts

New Top

Enterprise Transformation

New Approach to Winning

Lower Cost of Capital &

Underway - Delivering

for Attractive End Markets

Leadership Team

Future Business

Improve Capital Structure

Results

Repositioning, Increasing Competitiveness, and Delivering Results - Next Phase

Revenue*

Adjusted EBITDA*

$464 Million

$48 million

Adjusted

Customers

EBITDA %*

>1,100

10.4%

Global Employees

~3,000 + Additional ~700 in China JV

Revenue Breakdown*

39%

Power 61%

Solutions Mobile

Solutions

(1) 49% ownership in China JV

*Trailing Twelve Months as of 12/31/24

Globally Competitive Operational Footprint

Close-to-customer engineering centers coupled with both localized production for local markets and global low-cost footprint

North America

South America

Europe

Asia

69%

15%

REVENUE (1)

45%

23%

10%

22%

EMPLOYEES

FACILITIES

1,341 MACHINE

580 MACHINE

321 MACHINE

311 MACHINE

CENTERS

NN, Inc.logos represent employee concentration

(*) NN has 49% ownership in China JV; net income reported in "other income" in consolidated financials

Power Solutions: Stamped & Assembled Metal Products

Many well-positioned customers, strong new wins →Solid driver of NN's growth in FY'25

Power Solutions - Stamped & Assembled Products

Specializing in hard-to-make Stampings & Platings

Provides:

Customers with precision stamped parts, electroplated parts, assembly capabilities to help co- design and produce safe, durable, and high-quality mission-critical components across a flexible volume/mix platform

End Markets:

Electric Grid, Industrial, Vehicles, Electronics, Medical (new), Connector Parts (new), and Electric

Shielding (new)

Key Product Applications:

Smart meters, circuit breakers, sensors, transformers, switchgears, defense, and surgical

instruments

Design and build

In-house rapid

Good footprint

prototyping to

our own dies in-

between the US,

speed up the

house

Mexico and China

innovation process

Connector

Smart Meter Contact

Medical Surgical

Shields

Assembly or "Blade"

Instruments

Mobile Solutions: Machined Metal Products

Many well-positioned global customers with global agendas →Added growth in 2025

Mobile Solutions - Machined Products

Specialize in tough, quiet parts with micron tolerances

Provides:

Customers with precision machining and finishing capabilities to develop 6 sigma product designs with unmatched speed to market and advanced in-house precision engineering capabilities

End Markets:

Vehicles, (ICE/BEV/HEV), Industrial, and Medical (new)

Key Product Applications:

Electric power steering, electric braking, electric motors, gas and diesel fuel systems, emissions control for heavy duty (dosing)

Every part is

We operate as part of

Focused on next-gen

customer-designed

larger systems

processes & products

Key to success is the

We guarantee mating

Good footprint in US,

best manufacturing

and compatibility for

Brazil, France,

process

customers

Poland, and China

Precision Worm Shafts

Inlet

Electric Motor

Fittings

Shafts

(electric power steering)

NN's 5-Year Plan for Growing Sales and Profits

2028 Goals

Grow Net Sales to $650M

Lower Costs 3% per Year,

Manage Cash Flows

Conserve Cash Flow, Refresh Balance Sheet

Increase Adjusted EBITDA

Margin to 12-13%

Pathway to Achievement

Near-Term Progress

Secured $149 million of new business since beginning of 2023, launching 70 startup programs in 2025

Fixed Group of 7 plants,

$15 million cost-out plan for 2025

New ABL in place,

New Term Loan process underway, China implementing its own program

Adj. EBITDA margins are ~10%

Expected to continue advancement in 2025

5-Year Plan to Grow and Diversify Revenue Profile to $650 million

Organic Growth

M&A Growth

Program

Goal

Status

• Performing in-line with $40 million annual new wins growth (net) goal

New Wins Program

$325 million over 5 years

• Based on $65 million annual new wins target & ($25) million of EOPs

•

$60 million of new wins achieved in '23 & '24 are not yet in run-rate

• First 2 years = $136 million of new awards, ~300+ programs, ~20+ new customers

Electrical "Connect and

• Added dedicated sales team

$50 million over 3 years

•

On track to win ~$29 million in first 18 months of this initiative

Protect" New Wins

•

Winning with new blue chip, industry leading customers: Aptiv, Yazaki, Sumitomo

Electrical "Power Up" New

$50 million over 5 years

•

Added dedicated sales team -'Teamfor Grid Solutions'

Wins

•

On track to win ~$12 million in first 12 months

Medical Products

$50 million over 5 years

•

Added dedicated sales team

New Wins

•

Won ~$5 million in first 12 months

Electrical Business M&A

$25 million in acquired sales over 5 years

• Have evaluated a few companies

•

Will be selective

Medical Products M&A

$25 million in acquired sales over 5 years

• Have evaluated a few companies

•

Targeting bolt-on acquisitions in orthopedics

Key Markets Update

North America Market: ~70% of NN's Revenue

Rest of World : ~30% of NN's Revenue

(*) Source: Ward's Intelligence

Disclaimer

NN Inc. published this content on March 20, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 20, 2025 at 12:27:04.427.