NN : Investor Presentation – Sidoti Small-Cap Investor Conference

Investor

Presentation

Sidoti Virtual

Investor Conference

June 2024

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. These statements may discuss goals, intentions and expectations as to future trends, plans, events, results of operations or financial condition, or state other information relating to NN, Inc. (the "Company") based on current beliefs of management as well as assumptions made by, and information currently available to, management. Forward-looking statements generally will be accompanied by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "guidance," "intend," "may," "possible," "potential," "predict," "project" or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that are outside of management's control and that may cause actual results to be materially different from such forward- looking statements. Such factors include, among others, general economic conditions and economic conditions in the industrial sector; the impacts of pandemics, epidemics, disease outbreaks and other public health crises, on our financial condition, business operations and liquidity; competitive influences; risks that current customers will commence or increase captive production; risks of capacity underutilization; quality issues; material changes in the costs and availability of raw materials; economic, social, political and geopolitical instability, military conflict, currency fluctuation, and other risks of doing business outside of the United States; inflationary pressures and changes in the cost or availability of materials, supply chain shortages and disruptions, the availability of labor and labor disruptions along the supply chain; our dependence on certain major customers, some of whom are not parties to long-term agreements (and/or are terminable on short notice); the impact of acquisitions and divestitures, as well as expansion of end markets and product offerings; our ability to hire or retain key personnel; the level of our indebtedness; the restrictions contained in our debt agreements; our ability to obtain financing at favorable rates, if at all, and to refinance existing debt as it matures; new laws and governmental regulations; the impact of climate change on our operations; and cyber liability or potential liability for breaches of our or our service providers' information technology systems or business operations disruptions. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company's filings made with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. The Company qualifies all forward-looking statements by these cautionary statements.

With respect to any non-GAAP financial measures included in the following presentation, the accompanying information required by SEC Regulation G can be found at the back of this presentation or in the "Investors" section of the Company's web site, www.nninc.com, under the heading "News & Events" and

subheading "Presentations."

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Harold Bevis

President & Chief Executive Officer

Mike Felcher

SVP & Chief Financial Officer

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Investment Highlights: Enterprise Transformation Underway and Showing Results

Make Critical High-Spec	New Top	Enterprise Transformation	New Approach to Winning	Lower Cost of Capital /
Parts for Attractive End
Leadership Team	Underway	Future Business	Improve Capital Structure
Markets

• Leading manufacturer of high-precision machined and stamped
  metal products
• Decades of proprietary engineering know-how
• Products and know-how are applicable to diverse and desirable end market applications; auto, medical & power

• New top team focused on results and accountability; leading the transformation
• Experienced in transforming cost structures, commercial agendas, M&A
• Direct experience in
  NN's end markets and customers

• Just beginning transformation; sales wins, culling portfolio, increasing profits, and driving cash flow
• Fixing unprofitable areas with opportunity to improve profits and margins through cost optimization, price clearing initiatives, and better utilization

• Leveraging current footprint and capabilities to drive organic growth and more wins
• Investing aggressively into a few areas:

1. Medical o Electrical

1. Low-CostCountry Capacity

• Strategically managing operations for consistent free cash flow generation while investing into high- payback areas
• Implementing a set of actions to enable a refinance of the company's ABL, Term Loan and Preferred Stock

Repositioning, Increasing Competitiveness, and Delivering Results are Focus in FY'24

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NN At A Glance

• Best-In-Class maker of high-precision, complex metal products
• • Achieved $89 million in new business wins since Jan 2023 with wins in multiple markets passenger vehicle, industrial, electrical, medical. Goal is $130 million of wins in 2 years by Dec 2024.
• Two Primary Product Segments:
• • Power Solutions: products are primarily precision stamped and plated parts and assemblies.
  • Mobile Solutions products are primarily machined parts and assemblies.
• Global Manufacturing Platform: 27 facilities in 6 countries, 49% ownership in China JV machining plant with sales >$100 million and ~700 employees. NN has ~$600 million in total company PP&E (insured value)
• Strategic Partner to diversified and global customer base with long standing business relationships and long-running business streams
• More details on products and capabilities in the Appendix

Key Data Points

REVENUE(1)	ADJ. EBITDA(1)
$483M	$46M

EMPLOYEES

~3,100	CUSTOMERS
1,100+
+~700 in JV
Revenue Breakdown (1)

38% 62%

Power

Solutions Mobile

Solutions

1. Trailing Twelve Months as of 3/31/24

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Two Primary Business Segments:

Stamped Metal Products and Machined Metal Products

Power Solutions - Stamped Products

Provides:

Customers with precision stamping and plating capabilities to help codesign and produce safe, durable, and high-qualitymission-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

Mobile Solutions - Machined Products

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), and HVAC compressors

Connector	Smart Meter	Medical Surgical
Contact Assembly
Shields	Instruments
or "Blade"

Precision Worm	Inlet	Electric Motor
Shafts	Fittings	Shafts
(electric power steering)

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Globally Competitive Operational Footprint

• Most of our top customers are global and we have a global footprint to serve them.
• Have a pipeline of new business opportunities >$600 million
• Company is underway with a footprint upgrade and pivoting more assets into Low-cost countries and Medical

North America	South America	Europe	APAC
71%	9%	8%	13%
REVENUE (1)	REVENUE (1)	REVENUE (1)	REVENUE (1)
50%	22%	10%	18%
EMPLOYEES	EMPLOYEES	EMPLOYEES	EMPLOYEES
18	4	2	3
FACILITIES	FACILITIES	FACILITIES	FACILITIES
			*NN, Inc. logos represent employee concentration.
			(1) Trailing Twelve Months as of 3/31/24

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Transformation: Delivering Results

Goal		Results		Next Steps
New	• Adding been-there,done-that leadership talent across full organization -
	Executive leadership to plant-level	•	Selectively adding experienced team leaders
Leadership	•	Strengthening customer relationships		where necessary, more to go.
	• Organizational accountability to end results
Fix Unprofitable	• Confront, Fix or Exit systemically dilutive areas - price clear and cost-out	•	Footprint rationalization opportunities exist when
•	Previously, 7 plants delivered ($10M)+ Adj EBITDA on $100M+ of sales
Areas		• 3 of 7 now generate positive Adj EBITDA, remaining 4 on track to do the		cashflow permits it, until then optimization and
		continuous improvement is the key
		same in H1'25
Expand	• Cost-Out program is on track with over 1,000 individual projects	•	Progressively reduce conversion cost and
•	Increased scrutiny on contracts as operational performance has increased
Margins		overhead costs
	dramatically
Pay Down Debt	• Step-change in cash flow performance - returned NN to positive free cash flow	•	Now engaging with capital markets for a
•	Strategic actions to lower debt balance including: real estate and equipment
and Refi		comprehensive refinancing
	sale/leaseback, non-core asset sales
	• Delivered record new business wins in 2023 and expect similar wins in 2024
Grow the		• Win rate at 3x market growth rates	•	Improve capital structure to provide additional
Company	•	Entering new and diverse markets where capabilities carry premium value		growth capacity
	• Growing sales by strengthening presence and scale with key customers

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Progressively Driving Cost Out of the Company By Improving Operational Processes

			TTM Adjusted EBITDA
$50				($millions)		$46
$45				$41	$43
		$39	$38
$40
$35
	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24

TTM Adjusted EBITDA Per Headcount*

$20				($thousands)
$15				$12.7	$13.6	$15.0
		$11.4
$10.6
$10
$5
	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24

				Quarterly Headcount*
4,000		3,645
3,500				3,357	3,230	3,159	3,087
3,000
2,500
	Q1'23	Q2'23	Q3'23	Q4'23	Q1'24

*Does not include China JV employees

• Global Continuous Improvement Program
• Adj EBITDA per Head grew 42% over TTM
• Operational Improvement is Increasing NN's
  Commercial Competitiveness
• Significant ops-driven financial improvement in underperforming plants - on path to profitability

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Balance Sheet Optimization and Leverage Improvement: Solid Progress

Management Repositioning Balance Sheet for a Refinancing of ABL, Term Loan, and Preferred Equity

Capital expenditures average ~$20 million per year, utilizing leasing to lower cost of capital and provide additional investing flexibility

• FY'24 Capex forecasted to be ~$20-23 million
• Equipment sale leasebacks of $8 million completed year-to-date

Strategic Goal to Achieve Reduced Cost of Capital and Establish Capital

Structure Consistent with Company's Improved Positioning

• NN no longer in a distressed financial position with transformation's early success
• Aim to establish a capital structure than serves as a platform for long-term organic and inorganic growth

Trailing 12 Month Free Cash Flow

$20		(millions)
	$16.9		$15.7
$15
		$11.7
$10
$5	$1.3
$-
$(5)		Step-change in FCF generation
			under transformation
	Q2'23	Q3'23	Q4'23	Q1'24

• Strategic actions underway, aimed to achieve lower capital costs and improve balance sheet for faster results
• Improve and simplify capital structure

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