corporate capabilities presentation jan. 2016
TRANSCRIPT
Precision Component Solutions, Engineered to Your Specifications
Our mission is to provide high-quality products and superior customer service that continuously exceed
our customers’ expectations while providing enhanced value for our stakeholders.
Our vision is to be the leading manufacturer of high precision components.
Mission and Vision
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About
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• Leading manufacturer of high-precision component solutions
• 2016 expected revenue of $890M*
• Traded on NASDAQ (NNBR)
• Global reach, local depth
• Continuous investment in technology leadership
• Operating tolerances of <1 micron
• 7 billion + parts produced per year
• Zero-defect process design
• Supplying to diversified end markets
• 42 manufacturing facilities in major global markets
*Midpoint 2016 guidance
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Sales: Millions USD
Growth towards becoming a diversified industrial with string of acquisitions, including:
• V-S Industries (USA, Mexico)
• RFK (Bosnia)
• Chelsea Grinding (USA)
• Autocam Corporation (USA, Brazil, Europe, China)
A History of Growth
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1980 1994 1997 1999 20042000 2015201420132006
IPO issued, trading on Nasdaq (NNBR) begins
Founder Ennen retires, Rock Baty appointed CEO
Expansion into precision plastics by acquiring Industrial Molding Corp.
NN expands into Europe
NN expands into China with greenfield plant
Enters precision metal components market with Whirlaway acquisition
Baty retires, Rich Holder appointed CEO
New strategic plan unveiled, aimed at becoming a diversified industrial supplier of high precision solutions
NN acquires Precision Engineered Products and enters medical & electrical markets
NN acquires Caprock (precision plastics) in USA
Company founded in Erwin, TN by Dick Ennen
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Strategic Global Footprint
542 high-precision manufacturing facilities strategically located around the world
Corporate Headquarters
Autocam Precision Components
Metal Bearing Components
Precision Engineered Products
Tooling and Production Comprehensive Product Support
Engagement with customers on the front-end of processes to facilitate design recommendations
Perform failure modes and effects analysis NN will integrate their own products and unique
processes to help customers optimize their designs in product offering
Advanced prototype development Proven process validation procedures ensure
specifications are met with highest quality Customized process designs ensure custom products
exceed expectation and are difficult to replace
Continuous supply chain management Comprehensive customer support throughout product
lifecycle ensuring world-class quality and cost Efficiencies to drive down cost and improve
production quality, ensuring continuous gains for operational efficiency
Initial Design
Comprehensive Design & Manufacturing Capabilities
Design Review Material Selection Prototyping
Tooling, Automation,
Process Design
Production Part Approval Process
Supply Chain Management
High Touch Service
Assembly
Machining
Molding
Stamping
Finishing
Extensive Manufacturing Capabilities
Electrical Assemblies: Custom, repeatable assemblies with tight control
Clean Room Assembly: Class 8 clean rooms for assembly of medical devices
Precision Plastics: Optical quality, burr-free tight tolerances
Precision Metals: High-speed machining with critical surface finishes
Clean Room Molding: Low particulate molding for assembly ready components
Molding Automation: Robotics for loading inserts, sprue removal, etc.
Precision Stamping: High-speed stamping with tight tolerances
Advanced Stamping: Presses up to 400 tons and 1,800 strokes per minute
Coatings and Plating: Zinc, hard chrome plating, electroplating
Other Performance Solutions: (Non) precious plating, electro-polishing
3,000,000+ Sq. ft. of manufacturing capacity
5,400+ Employees globally
7 billion+ Parts produced per year
350+ Machining centers
200+ High speed presses
200+ Plastic molding machines
100+ Cold heading machines
Operational Overview
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Company Overview
Comprehensive global market with multiple industry capabilities and expertise 7
36%
33%
31%
Metal Bearing Components
Autocam Precision
Components
68%
22%
7%3%
North America
Europe
South America
Asia
54%
12%
9%
6%
Passenger Vehicles
General Industrial/Aerospace
Commercial Vehicles
Precision Engineered
Products
Medical
Electrical
19%
Group Mix Sales by Region Markets Served
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Differentiated, System-Critical ProductsAutocam Precision
ComponentsMetal Bearing Components
Precision Engineered Products
Electrical
General Industrial/Aerospace
Automotive
Medical
Electrical
General Industrial/ Aerospace
Diversified Customer Base
Serving more than 1,500 customers in regions around the world 9
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Precision Component Solutions, Engineered to Your Specifications
Autocam Precision Components Group
Autocam Group Introduction
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Close tolerance precision components
Highly engineered process technologies
Advanced machining development
Target transportation and general industry segments whose advancing technologies provide expanding growth opportunities and result in a balanced economic cycle portfolio
Customers value our engineered process technologies, global footprint and flexible production system
Global leader in single digit micron tolerance components
Autocam Group Overview
• Group Headquarters: Kentwood, Michigan
• 16 manufacturing operations with locations in:
• 1,100,000+ sq. ft. manufacturing capacity
• 2,800 employees
• More than 2 million parts produced daily
• Dedicated to continuous improvement
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United States France Mexico Poland Brazil China
Materials:• Experience with a variety of stainless, carbon
and high strength steelCharacteristics:
• OD size range: 2 – 50 mm• ID size range: 0.2 – 40 mm• Length range: 0.75 – 170 mm
High Precision Tolerances:• OD: +/- 0.002 mm• ID: +/- 0.005 mm• Depths: +/- 0.01mm• Seat roundness: < 0.001 mm• Flatness: 0.0003 – 0.002 mm• Hole position: 0.035 – 0.050 mm• Finish: Rz 0.5• Gear quality: DIN level 8 / AGMA level 10
Autocam Products & Capabilities
Fuel Systems• Gasoline Direct Injection• Multi-port Fuel Injection• High Pressure Diesel Injection
Powertrain and Transmission• Variable Valve and Cam Timing• Multi-speed Transmissions• Turbochargers & Superchargers
Power Steering• Electric Power Steering• Hydraulic Power Steering
Electric Motors• Seat Actuation Shafts• Lift Gate Shafts• Wiper Motor Shafts
General Industrial and Consumer• HVAC• Fluid Power• Power Tools
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• Precision turning• Precision grinding• Precision milling• Gear manufacturing• Rotary transfer machining• Precision secondary machining• Ultra finishing• Laser welding• Sub-assembly• Heat treatment• Precision cleaning• In-house design & tooling expertise
Products Capabilities
Autocam Group Summary
73%
10%
7%
10%South America
Europe
North America
Asia
75%
10%
11%
Passenger Vehicles
Commercial Vehicles
General Industrial
Consumer
42%
16%
15%
8%
8%
11%
Fuel Systems
Powertrain
Power Steering
Electric Motors
HVAC
Other
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4%
Global leader in single digit micron tolerance components
Product Mix Sales by Region Markets Served
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Precision Component Solutions, Engineered to Your Specifications
Metal Bearing Components Group
MBC Group Introduction
Leading independent manufacturer of high precision bearing components
Automated manufacturing cells for high volume production with zero defect quality
Regionally located close to our customers
Two research & development centers supporting global operations
Serving broad range of end markets in automotive and general industry, including rolling element bearings, driveline components and fluid power applications
16Global leader of high precision rolling elements
MBC Group Overview• Group Headquarters: Johnson City, Tennessee• 8 manufacturing operations with locations in:
• 1,100,000+ sq. ft. manufacturing capacity• 1,350 employees• Comprised of two global divisions: Global Balls Division and
Global Rollers and Sheet Metal Parts Division• Global leader in the manufacture of high-precision rolling
elements for the bearing industry and other applications in automotive and industrial markets
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United States The Netherlands Mexico Bosnia Italy China Slovakia
MBC Group Products & Capabilities
PrecisionBalls
• Diameters from 1.5mm to 120mm• Grades from G3 to G1000• Materials: 52100, modified high-hardenability 52100 and S-2
Cylindrical Rollers
• Diameters from 3mm to 120mm; Lengths from 4mm to 120mm• Profiles according to customer specifications• Materials: 52100, modified high-hardenability 52100, S-2, 440-C SS
Tapered Rollers
• Large-end roller diameters from 3mm to 33mm• Profiles according to customer specifications• Materials: Thru-hardening and case-carburized bearings steels
Spherical Rollers
• Roller diameters from 5mm to 16mm• Materials: 52100• Currently supplying blanks through heat treat operation
Stamped Metal Parts
• Tapered Roller Cages with diameters from 30mm-150mm• Spherical Rollers Cages with diameters from 43mm to 130mm• Other stamped metal parts for auto & industrial applications
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MBC Group Summary
64%
30%
5%
Precision Rollers
Precision Balls
Stamped Metal Parts
Product Mix Sales by Region Markets Served
25%
51%
16%
8% North AmericaSouth
America
Asia
58%34%
8%
Passenger Vehicles
General Industrial
19Global leader of high-precision bearing components
Commercial Vehicles
Europe
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Precision Component Solutions, Engineered to Your Specifications
Precision Engineered Components Group
PEP Group Introduction
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World-class provider of custom-engineered products serving the medical, electrical, transportation, consumer and aerospace end markets
30+ manufacturing capabilities
Discrete components to finished devices
Managing the supply chain from component manufacturing to high value subassemblies and finished, packaged products
Extensive experience in validation and qualification protocols for multiple end markets
Global leader of custom-engineered precision components
PEP Group Overview
• Acquired by NN in October 2015
• Group Headquarters: Attleboro, Massachusetts
• 17 manufacturing operations with locations in:
• 700,000+ sq. ft. manufacturing capacity
• 1,300 employees
• New additive manufacturing center in Warsaw, Indiana
• TS16949, ISO9001, ISO3485, AS9100, FDA Registered, J-PAL Certified, CE Marking Product Approval
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United States Mexico
Dominican Republic China
PEP Group Products & Capabilities
• In-depth materials science expertise with advanced engineering and production capabilities to design and manufacture a broad range of high precision metal and plastic components and assemblies, including:
o Electrical contacts and assemblies
o Metal stamping and machining
o Plastic molding and machining
o Clad metals and contact tape
o Surface finishing and assembly
o Single use disposable surgical devices
o Orthopedic surgical instruments
o Product design and prototyping
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PEP Group Summary
60%18%
20%
2%Plastic Injection Molding
Metal Machining Stamped Metal:
Parts, Contacts, Specialty Metals
Plastic Machining
42%
23%
12%
3%
10%
10%
Medical & FDA-Compliant
Devices
Electrical Controls
Passenger Vehicles
Power Distribution
Other
68%
North America
90%
8%
Europe1%
ROW1%
24Global leader of custom-engineered precision components
Commercial Vehicles
Asia
Product Mix Sales by Region Markets Served
NN, Inc. – Your Global Precision Solutions Provider
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• The leading global manufacturer of precision components
• Global reach, broad industry platforms and high-precision process technologies allow us to be the partner you can rely on for:
Engineered solutions that allow the seemingly impossible to be possible Product development and optimization Production capacity where you need it
• Industry, product, location, requirement…How can we help?
Precision Component Solutions, Engineered to Your Specifications
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Leading Manufacturer of High-Precision Components Worldwide