NN, Inc. NN, Inc. PresentationPresentation
NN, Inc. TodayNN, Inc. TodayBearing
ComponentsBearing
ComponentsPrecision Metal
ComponentsPrecision Metal
Components
NN, Inc. TodayNN, Inc. Today
A leading independent supplier of high precision components and assembliesA leading independent supplier of high precision components and assemblies
14 manufacturing facilities in North America, Europe and Asia14 manufacturing facilities in North America, Europe and Asia
Global manufacturing presenceGlobal manufacturing presence
Serving diverse industrial end marketsServing diverse industrial end markets
NN makes the Forbes “200 Best” List for the 4th TimeNN makes the Forbes “200 Best” List for the 4th Time
Key Events - HistoryKey Events - History
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 0781 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07
Revenue ($ millions)Revenue ($ millions)
$0$0
$50$50
$100$100
$150$150
$200$200
$250$250
$300$300
$400$400
1998 - Launched Bearing Components Strategic Plan ($73 mm) 1998 - Launched Bearing Components Strategic Plan ($73 mm)
1999 - Acquired IMC ($85 mm)1999 - Acquired IMC ($85 mm)
2001 - Acquired Delta Rubber ($180 mm)2001 - Acquired Delta Rubber ($180 mm)
1994 - Initial Public Offering ($61 mm)1994 - Initial Public Offering ($61 mm)
1980 - Company Founded1980 - Company Founded
2003 - Acquired Veenendaal (Netherlands)2003 - Acquired Veenendaal (Netherlands)
2003 - Acquired 100% of Euroball Joint Venture (Italy, Germany, Ireland)2003 - Acquired 100% of Euroball Joint Venture (Italy, Germany, Ireland)
2003 - Acquired Slovakia Factory ($268 mm)2003 - Acquired Slovakia Factory ($268 mm)2004 - China Factory Start-Up2004 - China Factory Start-Up
2005 - Acquired SNR ($321 mm)2005 - Acquired SNR ($321 mm)2006 - Launched Precision Metal Components Strategic Plan2006 - Launched Precision Metal Components Strategic Plan2006 - Acquired Whirlaway ($405 mm*)2006 - Acquired Whirlaway ($405 mm*)
* Proforma* Proforma
NN Inc. \ WhirlawayNN Inc. \ Whirlaway
+Whirlaway
NN Inc.
• Diversified public company with history of financial stability
• Company with global footprint to accelerate support of customer globalization
• Commitment to quality and customer service
• Broad depth of technical and manufacturing resources
• Integrated marketing and technical services approach
• Customer solutions focus
• Diversified public company with history of financial stability
• Company with global footprint to accelerate support of customer globalization
• Commitment to quality and customer service
• Broad depth of technical and manufacturing resources
• Integrated marketing and technical services approach
• Customer solutions focus
NN Inc. \ WhirlawayNN Inc. \ Whirlaway
• Proven provider of collaborative technical solutions - Value added engineering
• Comprehensive manufacturing process technology experience
• Competent mechanical engineering team for design, build, and integration of equipment and software
• Program management system
• Proven provider of collaborative technical solutions - Value added engineering
• Comprehensive manufacturing process technology experience
• Competent mechanical engineering team for design, build, and integration of equipment and software
• Program management system
• Diversified global market presence
• Experience in metal components manufacturing
• Focused on Lean manufacturing, six sigma, TPM
• Expertise in applications marketing
• Publicly traded company with solid financial history
• Diversified global market presence
• Experience in metal components manufacturing
• Focused on Lean manufacturing, six sigma, TPM
• Expertise in applications marketing
• Publicly traded company with solid financial history
Whirlaway NN Inc.
Competitive AdvantagesCompetitive Advantages
NN StrengthsNN Strengths Result InResult In
Customer needs driven culture
High precision component and assembly manufacturing
Collaborative component and tooling design
Component and tooling design
“Level 3” - Six Sigma, Lean Manufacturing, Total Productive Maintenance
Customer needs driven culture
High precision component and assembly manufacturing
Collaborative component and tooling design
Component and tooling design
“Level 3” - Six Sigma, Lean Manufacturing, Total Productive Maintenance
Unparalleled service
High quality
Value-enhancing, engineering capability
Cost competitive global structure
Unparalleled service
High quality
Value-enhancing, engineering capability
Cost competitive global structure
Global Market PresenceGlobal Market Presence
Erwin, TNMt. City, TNErwin, TNMt. City, TN
Danielson, CTDanielson, CT
Lubbock, TXLubbock, TX
Eltmann, GermanyEltmann, Germany
Pinerolo, ItalyPinerolo, Italy
Kilkenny,IrelandKilkenny,Ireland
Veenendaal, The NetherlandsVeenendaal, The Netherlands
SlovakiaSlovakia
Plant Locations: NN Ball and Roller Whirlaway NN Europe - Euroball NN Europe - Veenendaal IMC Delta Rubber China Customer/Country Locations
Plant Locations: NN Ball and Roller Whirlaway NN Europe - Euroball NN Europe - Veenendaal IMC Delta Rubber China Customer/Country Locations
Kunshan, Jiangsu, ChinaKunshan, Jiangsu, China
Tempe, AZTempe, AZ
Wellington, OHWellington, OHHamilton, OHHamilton, OH
Facilities and EmploymentFacilities and Employment
Erwin, TN Employees: 215
Mt. City, TN Employees: 92
Industrial MoldingLubbock, TX
Employees: 286
Delta RubberDanielson, CT
Employees: 196
NN ItalyPinerolo, Italy
Employees: 336
NN NetherlandsVeenendaal, NLEmployees: 377
NN IrelandKilkenny, IrelandEmployees: 76
NN GermanyEltmann, Germany
Employees: 129
NN SlovakiaKysucke,
NM SlovakiaEmployees: 49
Kunshan, ChinaEmployees: 47
14 Manufacturing Facilities
- North America - Europe - Asia
2,450 Global Employees
US Ball and Roller Division Whirlaway Division
Wellington, OH 1Employees: 230
Wellington, OH 2Employees: 200
Hamilton, OHEmployees: 30
Triumph LLCTempe, AZ
Employees: 200
NN Asia
Plastic and Rubber Division
NN Europe
ManagementManagementRock Baty
CEO, President and Chairman
Jim DortonVP Corporate Development and CFO
Tom ZupanPresident - Whirlaway Division
Dave GilsonVP Sales and Marketing
Nicola TrombettiVP, MD-NN Europe
Will Kelly VP Admin, Treasurer and CCO
Frank GentryVP, GM-U.S. Ball and Roller
Jeff HodgeCorporate Director-Level 3
Tom McKownVP, MD-NN Asia
James AndersonGroup VP – Plastics and Rubber
Business Unit RevenueBusiness Unit Revenue
NN EuroballBalls $128 MMNN Euroball
Balls $128 MM
NN AmericasBalls $53 MM
Cylindrical Rollers $13 MM
NN AmericasBalls $53 MM
Cylindrical Rollers $13 MM
IMCPlastic Components
$22 MM
IMCPlastic Components
$22 MM
Delta RubberBearing Seals
$26 MM
Delta RubberBearing Seals
$26 MM
VeenendaalTapered Rollers
Metal Cages $69 MM
VeenendaalTapered Rollers
Metal Cages $69 MM
$405 MM$405 MM
IMCPlastic Bearing
Retainers $10 MM
IMCPlastic Bearing
Retainers $10 MM
WhirlawayMetal Components
$80 MM
WhirlawayMetal Components
$80 MM
Served MarketsServed Markets
Bearing Bearing ComponentsComponents
Precision Metal Precision Metal ComponentsComponents
AutomotiveAutomotive General IndustrialGeneral Industrial
AutomotiveAutomotiveGeneral IndustrialGeneral IndustrialDiesel EnginesDiesel EnginesCommercial Refrig.Commercial Refrig.Thermal SystemsThermal SystemsOil and GasOil and GasAerospaceAerospaceMedicalMedical
Current MarketCurrent Market Future MarketFuture Market
Served MarketsServed MarketsServes wide variety of industrial end marketsServes wide variety of industrial end markets
Industrial Thermal Systems Commercial Refrig. Diesel Engine Material Handling Construction General Industrial
Industrial Thermal Systems Commercial Refrig. Diesel Engine Material Handling Construction General Industrial
Automotive Engine Brake/Chassis Steering Power Train
Automotive Engine Brake/Chassis Steering Power Train 45%45%
55%55%
Future Markets Oil & Gas Aerospace Medical
Future Markets Oil & Gas Aerospace Medical
Product PlatformsProduct Platforms
Bearing Bearing ComponentsComponents
Precision Metal Precision Metal ComponentsComponents
Precision BallsPrecision Balls RollersRollers RetainersRetainers SealsSeals
Fluid Control Fluid Control Components Components AssembliesAssemblies
ShaftsShaftsPrisms, RingsPrisms, RingsHousings, BracketsHousings, Brackets
Product Mix OverviewProduct Mix Overview
Precision Balls45%
Retainers7%
Bearing Selas6%Plastic Components
6%
Precision Metal Components
20%
Tapered/Cylindrical Rollers16%
Customer OverviewCustomer Overview
Other19%
TRW2%
Iljin2%
Siemens2%
Eaton2%
Copeland6%
Timken6%
GKN2%
Delphi4%
SNR3%
Bosch1%
Caterpillar1%
INA/FAG12%
SKF38%
Financial HighlightsFinancial Highlights
Historical SalesHistorical Sales
($25)
$25
$75
$125
$175
$225
$275
$325
$375
$425
1999
2000
2001
2002
2003
2004
2005
2006
Est
2006
Pro
form
a
$85
$132
$180 $192
($Millions)
$253
$304$321
22% CAGR
(2006 Proforma)
$325
$405
Annual EBITDAAnnual EBITDA
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
1999 2000 2001 2002 2003 2004 2005 2006 Est
$ millions
$18
$26
$31
$37 $36
$44
$27
14% CAGR
$45
EPS from OperationsEPS from Operations
$0.57
$0.76
$0.54
$0.31
$0.66
$0.52
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
1999 2000 2001 2002 2003 2004 2005 2006 Est
$’s/Share
$0.86-$0.92
8% CAGR
$0.87
Historic EBITDA To Debt LevelsHistoric EBITDA To Debt Levels
*Year end ratio. EBITDA adjusted to include full year EBITDA for acquisitions made during indicated year and to exclude effects of one-time unusual charges.*Year end ratio. EBITDA adjusted to include full year EBITDA for acquisitions made during indicated year and to exclude effects of one-time unusual charges.
Debt/EBITDA*Debt/EBITDA*
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2000 2001 2002 2003 2004 2005 2006
1.5X 2.0X 1.4X 2.2X 2.1X 1.4X 1.9X
2006 - 2010 Strategic Plan2006 - 2010 Strategic Plan
2006 - 2010 Strategic Plan 2006 - 2010 Strategic Plan
1. Enhance R&D and create applications
marketing expertise
2. Continue growth and expansion of operations
in Asia region
3. Accelerate Level 3 Initiatives (Lean, Six
Sigma, TPM)
1. Enhance R&D and create applications
marketing expertise
2. Continue growth and expansion of operations
in Asia region
3. Accelerate Level 3 Initiatives (Lean, Six
Sigma, TPM)
Operational Execution Initiatives:Operational Execution Initiatives:
2006 - 2010 Strategic Plan2006 - 2010 Strategic Plan
1. Grow existing bearing components:• Roller product expansion
• Geographic expansion of existing products
2. Creation of new metal related component
product platform via acquisition
1. Grow existing bearing components:• Roller product expansion
• Geographic expansion of existing products
2. Creation of new metal related component
product platform via acquisition
Growth Initiatives:Double Revenue and Income in 5 Years
Growth Initiatives:Double Revenue and Income in 5 Years
Bearing Components
93%
Other Industrial Products
7%
Bearing Components
93%
Other Industrial Products
7%
Bearing Components
55%
Other Industrial Products
5%
New Precision Steel Components
40%
Bearing Components
55%
Other Industrial Products
5%
New Precision Steel Components
40%
Sales Development 2006 – 2010 By Product GroupSales Development 2006 – 2010 By Product Group
2006 Business Plan 2010 Pro-Forma
$325 million $720 million
Automotive50%
Other5%
Industrial45%
Automotive50%
Other5%
Industrial45%
Automotive65%
Other5%
Industrial30%
Automotive65%
Other5%
Industrial30%
Sales Development 2006-2010 By End MarketSales Development 2006-2010 By End Market
2006 Business Plan 2010 Pro-Forma
$325 million $720 million
Conclusions Conclusions
• NN has developed a strong core business in high precision
bearing components
• New strategy provides for growth via following strategic initiatives:
• Continued growth of core bearing components core business
• Creation of new high precision metal components product platform
• Growth goals are achievable and closely related to our
core
• NN has developed a strong core business in high precision
bearing components
• New strategy provides for growth via following strategic initiatives:
• Continued growth of core bearing components core business
• Creation of new high precision metal components product platform
• Growth goals are achievable and closely related to our
core