NN (NNBR) 49th Annual Automotive Symposium summary

Strategic transformation and operational turnaround

• Completed major transformation by eliminating unprofitable sales, reducing headcount by 20%, and achieving a 45% increase in adjusted EBITDA over two years, with a 20% reduction in working capital.

• Streamlined operations through plant closures, SG&A consolidation, and improved operating leverage, ensuring all plants are free cash flow self-sustaining.

• Transitioned from cost-reduction to a growth-oriented strategy, with over 150 new programs launching in 2025/2026 and a new business pipeline exceeding $850M.

• Multi-year plan targets over $1 billion in sales, leveraging M&A, operational scaling, and capital partners aligned with this growth trajectory.

• Defense and China automotive segments are now the most profitable, with China operations showing strong long-term contracts and a 20-year track record of growth.

Financial engineering and recapitalization plans

• Current capital structure includes $100M preferred stock, $100M common stock, and $135M net debt.

• Engaged in constructive discussions for recapitalization, aiming to keep leverage below 4x and support sustained M&A and common equity value accretion.

• Exploring refinancing options, including potential asset sales such as the 49% China JV stake.

• M&A is a key part of phase two, with a focus on equity-based deals and potential partnerships; several candidates are being evaluated.

• Targeting a $1 billion build-up plan, seeking capital partners aligned with this growth trajectory.

Market positioning and growth outlook

• Automotive remains the largest segment (40% of revenue), focusing on bespoke, high-margin parts for global OEMs.

• Defense, electronics, and medical markets are growing, with new business wins and higher margins in defense.

• Over 150 new programs are underway, expected to add $40-50M in revenue in 2026, with a quoted pipeline of $850M and a 24% hit rate.

• Automotive and commercial vehicle markets are expected to recover in 2026, potentially adding $8-15M in revenue.

• Strategic focus on advanced manufacturing, quality, and continuous improvement to support organic and inorganic growth.