NN, Inc. (NASDAQ:NNBR) Q2 2021 Earnings Conference Call August 6, 2021 9:00 AM ET Company Participants Mike Danehy ??? Director, Investor Relations and Financial Planning and Analysis Warren Veltman ??? President and Chief Executive Officer Mike Felcher ??? Senior Vice President and Chief Financial Officer Conference Call Participants Rob Brown ??? Lake Street Capital Markets Ken Newman ??? KeyBanc Capital Markets Operator Good day, and welcome to the NN, Inc. Second Quarter 2021 Earnings Conference Call. [ ...

Q2 2021 Earnings Presentation 1 Forward Looking Statement & Disclosures 2 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, and similar statements, are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of NN, ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-23486 NN, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or org ...

Q1 2021 Earnings Presentation Forward Looking Statement & Disclosures 2 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, and similar statements, are forward-looking statements concerning matters that involve risks, uncertainties and other factors which may cause the actual performance of NN, In ...

Financial Data and Key Metrics Changes - Sales for Q1 2021 were $126.8 million, up 9.1% year-over-year and up 6.5% sequentially [13] - Reported operating income improved to $1 million from a loss of $103.9 million a year ago, with the prior year including a significant goodwill impairment [14] - Non-GAAP adjusted EBITDA was $16.9 million or 13.3% of sales, up from $10.1 million or 8.7% of sales a year ago [14] - GAAP EPS from continuing operations was a loss of $0.46 per share, improved from a loss of $5.96 per share a year ago [14] - Net debt decreased to $123.3 million from $768.9 million a year ago, resulting in a net leverage ratio of 2.3 times, down from 5.4 times [22] Business Line Data and Key Metrics Changes - Mobile Solutions sales grew 11.3% year-over-year, with GAAP operating profit of $6.1 million compared to $0.3 million in the prior year [29][30] - Adjusted operating profit for Mobile Solutions increased nearly 377% to $7.1 million or 9.1% of sales from $1.5 million or 2.1% of sales last year [30] - Power Solutions experienced a 5.8% year-over-year increase in sales, driven by higher precious metals pricing, but faced lower overall demand due to COVID-19 impacts [33] Market Data and Key Metrics Changes - North American automotive production is expected to increase by 24% in 2021, nearing 2019 levels, despite ongoing chip shortages [25] - The medium and heavy truck markets in North America, Europe, and China continue to grow steadily, driven by demand for diesel engines [26] - Power companies are executing upgrades for aging infrastructure, with a focus on smart grid systems and green power generation [27] Company Strategy and Development Direction - The company aims to achieve growth and margin targets by 2025, supported by a stable long-term financial footing following refinancing [10] - Focus on free cash flow generation through disciplined capital spending and working capital management [32] - Plans to evaluate global facility footprint for optimization and continuous improvement cost reductions [40] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery and its impact on business, while remaining cautious about supply chain issues and material shortages [10][39] - The company anticipates strong growth in the first half of 2021, particularly in Q2, but acknowledges potential production interruptions due to material shortages [39] - Management is focused on maintaining customer expectations for delivery and quality while improving cost structures [43] Other Important Information - Free cash flow for Q1 2021 was $2.4 million, compared to a cash use of $1 million in the prior year [21] - Capital expenditures were reduced by 26% compared to 2020, with a focus on sustainability and growth [19][20] - The company has over $75 million in liquidity as of March 31, 2021, and has not drawn on its revolver [23] Q&A Session Summary Question: Expectations for revenue and chip shortages - Management acknowledged concerns about semiconductor chip shortages but noted that a significant portion of their products is used in high-margin SUV and large truck platforms, which may mitigate some impacts [49][50] Question: Gross margins outlook amid rising steel prices - Management indicated that most contracts allow for passing through material price adjustments, which should help manage gross margins despite rising costs [62] Question: M&A strategy and deal sizes - The company is exploring potential transactions and aims to maintain a leverage ratio below three times, but may consider going up to 3.5 times for strategic fits [67] Question: Market disruption risks and future outlook - Management expects market disruption risks to persist through Q2 and possibly into Q3, but remains optimistic about strong performance in the latter half of the year [72][74] Question: Customer activity for EV products - The company has seen new business awards related to electric vehicles, indicating a positive pipeline for EV-related products [76]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2021, including operations, balance sheets, equity, and cash flows [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) The company reported increased net sales and significantly reduced losses from continuing and total operations in Q1 2021 Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2021** | **2020** | | **Net sales** | $126,804 | $116,213 | | Income (loss) from operations | $978 | $(103,850) | | Loss from continuing operations | $(4,913) | $(108,077) | | Loss from discontinued operations, net of tax | — | $(140,114) | | **Net loss** | **$(4,913)** | **$(248,191)** | | Net loss per common share | $(0.46) | $(5.96) | [Condensed Consolidated Balance Sheets (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets slightly decreased, while liabilities significantly increased due to debt refinancing, impacting stockholders' equity as of March 31, 2021 Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $222,496 | $215,218 | | **Total assets** | **$622,316** | **$624,962** | | **Total current liabilities** | $98,070 | $103,231 | | **Total liabilities** | **$340,703** | **$265,724** | | **Total stockholders' equity** | $234,755 | $254,152 | [Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Stockholders'%20Equity%20(Unaudited)) Total stockholders' equity decreased in Q1 2021, primarily due to net loss and accrued preferred stock dividends - The main drivers for the change in stockholders' equity during Q1 2021 were the net loss of **$4.9 million** and accrued preferred stock dividends of **$14.5 million**[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operations, used in investing, and provided by financing activities resulted in a decrease in cash and cash equivalents for Q1 2021 Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | **2021** | **2020** | | Net cash provided by operating activities | $7,884 | $10,224 | | Net cash used in investing activities | $(20,877) | $(11,178) | | Net cash provided by financing activities | $9,628 | $53,900 | | **Net change in cash and cash equivalents** | **$(5,105)** | **$47,511** | | Cash and cash equivalents at end of period | $43,033 | $79,214 | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed explanations for financial statement line items, covering business divestiture, debt refinancing, and preferred stock issuance - In October 2020, the company sold its Life Sciences business for **$753.3 million** in cash, with a potential earnout of up to **$70 million**[30](index=30&type=chunk) - In March 2021, the company entered into a new **$150.0 million** Term Loan Facility and a **$50.0 million** ABL Facility, using the proceeds to terminate its previous credit facility[54](index=54&type=chunk) - In March 2021, the company issued **65,000 shares** of Series D Perpetual Preferred Stock for **$65 million** and used the proceeds to redeem all outstanding Series B Convertible Preferred Stock[78](index=78&type=chunk)[83](index=83&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 operational and financial results, highlighting increased net sales, debt and preferred stock refinancing, and ongoing COVID-19 impacts - Net sales increased by **$10.6 million (9%)** in Q1 2021 compared to Q1 2020, primarily due to a **$11.2 million** increase in organic volume from the recovering automotive industry[156](index=156&type=chunk) - The company refinanced its credit facility and preferred stock in Q1 2021, entering a new **$150.0 million** term loan and a **$50.0 million** ABL facility, and issuing new Series D Preferred Stock to redeem the existing Series B[148](index=148&type=chunk)[149](index=149&type=chunk)[153](index=153&type=chunk) - The COVID-19 pandemic continues to create disruptions, including a worldwide semiconductor chip shortage affecting customer volumes[145](index=145&type=chunk) Segment Performance - Q1 2021 vs Q1 2020 (in thousands) | Segment | Net Sales Q1 2021 | Net Sales Q1 2020 | Income from Ops Q1 2021 | Income (Loss) from Ops Q1 2020 | | :--- | :--- | :--- | :--- | :--- | | **Mobile Solutions** | $77,776 | $69,884 | $6,090 | $264 | | **Power Solutions** | $49,075 | $46,401 | $2,432 | $(90,334)* | *Includes $92.9M goodwill impairment [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to interest rate and foreign currency risks, managing interest rate risk through debt structure and having terminated its interest rate swap - The company terminated its fixed-rate interest rate swap agreement on March 22, 2021, in conjunction with its debt refinancing[185](index=185&type=chunk) - At March 31, 2021, the company had **$150.0 million** of principal outstanding under its new Term Loan Facility, with a **1.00% LIBOR floor** limiting interest expense increase to **$0.2 million** for a one-percent LIBOR rise[187](index=187&type=chunk) - The company is exposed to foreign currency risk from its international operations but did not hold any foreign currency derivatives as of March 31, 2021[188](index=188&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q1 2021 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[189](index=189&type=chunk) - No changes occurred during the quarter ended March 31, 2021, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[190](index=190&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference disclosures on legal proceedings, including tax disputes and lawsuits related to business transactions - The company is engaged in certain legal proceedings, which are detailed in Note 11 of the Notes to Condensed Consolidated Financial Statements[193](index=193&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2020 Annual Report on Form 10-K - No material changes to the risk factors disclosed in the 2020 Annual Report have occurred[194](index=194&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company withheld shares to satisfy tax obligations related to the vesting of restricted stock for employees Issuer Purchases of Equity Securities (Q1 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January 2021 | — | $ — | | February 2021 | 43,473 | $6.81 | | March 2021 | 6,188 | $7.82 | | **Total** | **49,661** | **$6.94** | - Shares were withheld to pay for tax obligations due upon the vesting of restricted stock under the NN, Inc. 2019 Omnibus Incentive Plan[194](index=194&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[195](index=195&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - Not applicable[196](index=196&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information) No other material information is reported in this section - None[197](index=197&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including documents related to preferred stock, credit agreements, and officer certifications - Key exhibits filed include the Certificate of Designation for Series D Preferred Stock, the new Term Loan Credit Agreement, the new ABL Credit Agreement, and certifications by the CEO and CFO[200](index=200&type=chunk) [Signatures](index=35&type=section&id=SIGNATURES)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-23486 NN, Inc. (Exact name of registrant as specified in its charter) Delaware 62-1096725 (State or other jurisdiction of inco ...

Q4 2020 Earnings Presentation Forward Looking Statement & Disclosures 2 Forward Looking Statement: With the exception of the historical information contained in this presentation, the matters described herein contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to be materially different from such forward-looking stat ...

NN, Inc. (NASDAQ:NNBR) Q4 2020 Earnings Conference Call March 12, 2021 9:00 PM ET Company Participants Mark Schuermann - Vice President Treasurer and Investor Relations Warren Veltman - President and Chief Executive Officer Tom DeByle - Senior Vice President and Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Rob Brown - Lake Street Capital Markets Steve Barger - KeyBanc Capital Markets Operator Good day, and welcome to the NN Inc's Fourth Quarter 2020 Earnings Conference. ...

NN, Inc. (NASDAQ:NNBR) Q3 2020 Earnings Conference Call November 6, 2020 9:00 AM ET Company Participants Mark Schuermann - Vice President Treasurer & Investor Relations Warren Veltman - President & Chief Executive Officer Tom DeByle - Senior Vice President & Chief Financial Officer Conference Call Participants Daniel Moore - CJS Securities Ken Newman - KeyBanc Capital Markets Daniel Moore - CJS Securities Steve Barger - KeyBanc Capital Markets Operator Good day, and welcome to the NN Third Quarter 2020 Earn ...