PART I [Business](index=6&type=section&id=Item%201.%20Business) NN, Inc. manufactures high-precision components for global markets through Mobile and Power Solutions segments, with top ten customers accounting for 47% of 2023 net sales - NN, Inc. is a diversified industrial company with **27 facilities** across North America, South America, Europe, and China, organized into two main business groups: **Mobile Solutions** and **Power Solutions**[14](index=14&type=chunk)[15](index=15&type=chunk) - The top ten customers accounted for approximately **47% of net sales** in 2023, with sales distributed globally: 67% in North America, 14% in Asia, 10% in South America, and 9% in Europe[26](index=26&type=chunk) - As of December 31, 2023, the company employed **2,926 full and part-time employees** and **234 temporary workers** worldwide[31](index=31&type=chunk) [Business Segments and Products](index=6&type=section&id=Business%20Segments%20and%20Products) The company operates two segments: Mobile Solutions for automotive and industrial components, and Power Solutions for high-precision metal and plastic parts - **Mobile Solutions**: Focuses on complex, system-critical components for automotive (including electric and hybrid vehicles), general industrial, and medical end markets[16](index=16&type=chunk) - **Power Solutions**: Combines materials science with engineering to produce high-precision metal and plastic components for electrical, industrial, automotive, and medical markets[17](index=17&type=chunk) [Competition and Raw Materials](index=10&type=section&id=Competition%20and%20Raw%20Materials) The company competes on technical competence and quality, sourcing diverse raw materials globally while generally passing cost fluctuations to customers - Competitors for Mobile Solutions include **Anton Häring KG** and **CIE Automotive, S.A.** Competitors for Power Solutions include **Checon Corporation** and **Deringer-Ney, Inc.**[39](index=39&type=chunk)[40](index=40&type=chunk) - Key raw materials include various forms of **steel, aluminum, precious metals, and plastics**, with price volatility managed through consignment agreements for precious metals[41](index=41&type=chunk)[42](index=42&type=chunk) - The company is affected by **upward price pressure** on raw materials like steel and **supply chain disruptions**, but generally passes these cost fluctuations on to customers[43](index=43&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant operational, financial, and compliance risks, including customer concentration, substantial debt, and international market volatility [Risks Related to Our Operations](index=12&type=section&id=Risks%20Related%20to%20Our%20Operations) Operational risks include heavy customer dependence, international market exposure, product recalls, intense competition, and cybersecurity threats - The company is heavily dependent on its ten largest customers, which accounted for approximately **47% of consolidated net sales** in 2023[60](index=60&type=chunk) - International operations are a significant risk factor, as sales to customers outside the U.S. accounted for **40% of consolidated net sales** in 2023, including risks from tariffs and political instability[62](index=62&type=chunk) - The company faces **substantial cybersecurity risks**, including data breaches from hackers, malware, and phishing attacks, which could disrupt operations and damage its reputation[70](index=70&type=chunk) [Risks Related to Our Capitalization](index=17&type=section&id=Risks%20Related%20to%20Our%20Capitalization) Capitalization risks stem from significant indebtedness, including a $148.1 million Term Loan, restrictive covenants, and foreign currency exposure - As of December 31, 2023, the outstanding principal on the Term Loan Facility was **$148.1 million**, with estimated annual cash interest payments of **$18.3 million** plus **$2.9 million** in paid-in-kind interest[83](index=83&type=chunk) - Debt agreements contain **restrictive covenants** that limit the company's ability to incur additional debt, pay dividends, make certain investments, and sell assets[85](index=85&type=chunk) - Approximately **29% of revenues** are denominated in foreign currencies, exposing the company to risks from fluctuating currency values, unfavorably affecting 2023 revenue by **$0.6 million**[90](index=90&type=chunk) [Cybersecurity](index=21&type=section&id=Item%201C.%20Cybersecurity) The company maintains a robust cybersecurity framework with Board oversight, continuous monitoring, employee training, and insurance to mitigate risks - The **Audit Committee** of the Board of Directors has oversight for cybersecurity risks and receives updates from management at least quarterly[106](index=106&type=chunk) - The company's risk management strategy includes **24/7 security monitoring**, **continuous penetration testing** by a third party, **mandatory annual cybersecurity training** for employees, and a **cybersecurity insurance policy**[107](index=107&type=chunk)[108](index=108&type=chunk) [Properties](index=22&type=section&id=Item%202.%20Properties) As of December 31, 2023, NN, Inc. operates 27 facilities across six countries, including owned and leased properties Facility Distribution by Segment (as of Dec 31, 2023) | Segment | Location | Country | Ownership | | :--- | :--- | :--- | :--- | | **Mobile Solutions** | Campinas, Brazil | Brazil | Leased | | | Dowagiac, Michigan | U.S.A. | Owned | | | Juarez, Mexico | Mexico | Leased | | | Kamienna Gora, Poland | Poland | Owned | | | Kentwood, Michigan (4 sites) | U.S.A. | Leased/Owned | | | Marnaz, France | France | Owned | | | Marshall, Michigan | U.S.A. | Leased | | | Sao Joao da Boa Vista, Brazil (3 sites) | Brazil | Leased | | | Wellington, Ohio | U.S.A. | Leased | | | Wuxi, China | China | Leased | | **Power Solutions** | Algonquin, Illinois | U.S.A. | Owned | | | Attleboro, MA (5 sites) | U.S.A. | Owned/Leased | | | Foshan City, China | China | Leased | | | Lubbock, Texas | U.S.A. | Owned | | | Mexico City, Mexico | Mexico | Owned | | | North Attleboro, MA | U.S.A. | Owned | | | Palmer, Massachusetts | U.S.A. | Leased | | **Joint Venture** | Wuxi, China | China | Leased | | **Corporate** | Charlotte, North Carolina | U.S.A | Leased | [Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in a Brazilian tax dispute, with potential liabilities under $5.0 million, for which it expects indemnification - The company is engaged in a legal proceeding in Brazil regarding ICMS tax credits, with potential liability for remaining open lawsuits estimated to be less than **$5.0 million**[294](index=294&type=chunk)[295](index=295&type=chunk) - Management believes it is entitled to **indemnification** from the former shareholders of Autocam for this matter and does not expect to incur a loss[296](index=296&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under "NNBR", with 4,504 shares purchased in Q4 2023 for tax obligations - The company's common stock is traded on the Nasdaq under the symbol "**NNBR**" As of February 21, 2024, there were **3,767 beneficial owners** of record[116](index=116&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | October 2023 | 2,016 | $1.76 | | November 2023 | 2,488 | $2.00 | | December 2023 | — | — | | **Total** | **4,504** | **$1.89** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, net sales decreased 1.9% to $489.3 million, resulting in a $50.2 million net loss due to higher interest and derivative adjustments [Results of Operations (2023 vs 2022)](index=25&type=section&id=Results%20of%20Operations%20(2023%20vs%202022)) Net sales decreased 1.9% to $489.3 million, and a $6.1 million increase in interest expense led to a $50.2 million net loss Consolidated Results of Operations ($) | Metric | 2023 | 2022 | $ Change | | :--- | :--- | :--- | :--- | | Net sales | $489,270 | $498,738 | $(9,468) | | Loss from operations | $(21,804) | $(21,092) | $(712) | | Interest expense | $21,137 | $15,041 | $6,096 | | Net loss | $(50,150) | $(26,098) | $(24,052) | - Net sales decreased by **1.9%** due to reduced volume from facility closures and unfavorable foreign exchange, partially offset by higher customer pricing[136](index=136&type=chunk) - Interest expense increased by **$6.1 million** due to higher interest rates and a new **2.00%** paid-in-kind interest component on the Term Loan[140](index=140&type=chunk) [Results by Segment (2023 vs 2022)](index=28&type=section&id=Results%20by%20Segment%20(2023%20vs%202022)) Mobile Solutions sales grew 3.3% to $303.3 million, while Power Solutions sales fell 9.4% to $185.9 million, but its operating income improved Mobile Solutions Performance ($) | Metric | 2023 | 2022 | $ Change | | :--- | :--- | :--- | :--- | | Net sales | $303,335 | $293,536 | $9,799 | | Loss from operations | $(11,749) | $(2,165) | $(9,584) | Power Solutions Performance ($) | Metric | 2023 | 2022 | $ Change | | :--- | :--- | :--- | :--- | | Net sales | $185,948 | $205,204 | $(19,256) | | Income from operations | $11,096 | $3,536 | $7,560 | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by the ABL Facility and improved operating cash flow of $29.3 million, with a $16.8 million sale-leaseback expected - As of December 31, 2023, the company had **$148.1 million** outstanding under its Term Loan Facility and **$26.4 million** available under its ABL Facility[155](index=155&type=chunk) - Cash provided by operations was **$29.3 million** for 2023, a significant improvement from **$7.7 million** in 2022, driven by decreases in accounts receivable and inventory[152](index=152&type=chunk)[153](index=153&type=chunk) - A sale-leaseback of three properties is expected to close around March 15, 2024, generating **$16.8 million** in net proceeds to repay a portion of the Term Loan Facility[157](index=157&type=chunk)[358](index=358&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with a 1% SOFR increase impacting interest expense by $1.5 million, and foreign currency risk - The company is subject to interest rate risk from its variable-rate debt A **1%** increase in the one-month SOFR would increase annual interest expense by **$1.5 million** on the Term Loan Facility[170](index=170&type=chunk)[171](index=171&type=chunk) - The company is exposed to **foreign currency risk** from operating cash flows denominated in foreign currencies and did not hold any foreign currency derivatives as of December 31, 2023[172](index=172&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2021-2023, with an unqualified opinion from Grant Thornton LLP [Consolidated Financial Statements](index=33&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show a $50.2 million net loss in 2023, with total assets decreasing and liabilities increasing Key Financial Statement Data ($) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Operations** | | | | Net Sales | $489,270 | $498,738 | | Net Loss | $(50,150) | $(26,098) | | **Balance Sheet (End of Period)** | | | | Total Assets | $510,885 | $546,127 | | Total Liabilities | $308,084 | $295,162 | | Total Stockholders' Equity | $125,002 | $186,264 | | **Cash Flows** | | | | Net Cash from Operating Activities | $29,344 | $7,717 | [Notes to Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, debt structure, and a $47.5 million valuation allowance against deferred tax assets Revenue by Segment (2023, $) | Segment | Net Sales | | :--- | :--- | | Mobile Solutions | $303,335 | | Power Solutions | $185,948 | | **Total** | **$489,270** | - As of December 31, 2023, total debt was **$153.3 million**, primarily consisting of the Term Loan Facility, and the company was in compliance with all debt covenants[269](index=269&type=chunk)[272](index=272&type=chunk) - A valuation allowance of **$47.5 million** has been recorded against deferred tax assets as of December 31, 2023, as management determined it is more likely than not that a portion of these assets will not be realized[305](index=305&type=chunk)[308](index=308&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2023[361](index=361&type=chunk) - Management determined that the company's internal control over financial reporting was **effective** as of December 31, 2023, based on the COSO framework, and Grant Thornton LLP issued an **unqualified opinion**[363](index=363&type=chunk)[364](index=364&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=63&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the proxy statement - Required information for this item is **incorporated by reference** from the definitive proxy statement to be filed with the SEC[369](index=369&type=chunk) [Executive Compensation](index=63&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation details are incorporated by reference from the definitive proxy statement - Required information for this item is **incorporated by reference** from the definitive proxy statement to be filed with the SEC[371](index=371&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=63&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with 296,000 securities outstanding under equity compensation plans Equity Compensation Plan Information (thousands, except per share data) | Plan Category | Number of securities to be issued upon exercise (thousands) | Weighted-average exercise price of outstanding options ($) | Number of securities remaining available for future issuance (thousands) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 296 | $14.46 | 1,492 | | Equity compensation plans not approved by security holders | — | — | — | | **Total** | **296** | **$14.46** | **1,492** | [Certain Relationships and Related Transactions, and Director Independence](index=63&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Related party transactions and director independence information are incorporated by reference from the proxy statement - Required information for this item is **incorporated by reference** from the definitive proxy statement to be filed with the SEC[374](index=374&type=chunk)[375](index=375&type=chunk) [Principal Accountant Fees and Services](index=63&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the definitive proxy statement - Required information for this item is **incorporated by reference** from the definitive proxy statement to be filed with the SEC[376](index=376&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=64&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements and a comprehensive index of all exhibits filed with the Form 10-K - This section contains the list of **financial statements and schedules** included in the report, as well as a **detailed index of all exhibits** filed[378](index=378&type=chunk)[381](index=381&type=chunk) [Form 10-K Summary](index=67&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided in this report - None[386](index=386&type=chunk)

Exhibit 99.1 NN, Inc. 6210 Ardrey Kell Road, Suite 120 Charlotte, NC 28277 FOR IMMEDIATE RELEASE NN, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS; 2024 GUIDANCE Business transformation continues; delivering record-setting new business wins in 2023 and significantly improved free cash flow performance Company provides sales, adjusted EBITDA, and free cash flow outlook for 2024 CHARLOTTE, N.C., March 11, 2024 – NN, Inc. (NASDAQ: NNBR), a global diversified industrial company that engineers and manuf ...

9 Power Solutions: Q3'23 Highlights Sales down 11.0%, or $5.6 million, from prior year (−) Volume down ~$8 million − Auto component sales primarily due to two key customers losing market share − General industrial component sales due to lower market capital spending in the increasing interest rates environment − Aerospace and defense sales down as a result of Irvine, CA and Taunton, MA facilities closures and business exits Profitability (+) Rationalized unprofitable business within Taunton, MA facility (+) ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) 6210 Ardrey Kell Road, Suite 600 Charlotte, North Carolina 28277 (Address of principal executive of ices, including zip code) (980) 2 ...

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, 2023 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 organization) 6210 Ar ...

Financial Data and Key Metrics Changes - Sales for Q1 2023 were $127.1 million, down 0.8% from Q1 2022, primarily due to lower volumes and foreign exchange headwinds, partially offset by pricing actions [33][50] - Free cash flow was a use of $3.7 million, an improvement of $5.7 million compared to an outflow of $9.4 million in Q1 2022 [27][34] - Non-GAAP adjusted EBITDA was $8.1 million, or 6.4% of sales for Q1 2023 [34] Business Line Data and Key Metrics Changes - Power Solutions sales decreased 5.7% year-over-year, driven by lower electric component volume and customer inventory reductions [52] - Mobile Solutions sales increased 2.6% from the prior year, primarily due to pricing actions taken throughout 2022, partially offset by lower volume [54] Market Data and Key Metrics Changes - The global light vehicle production is forecasted to increase approximately 5% in 2023, with a positive production outlook in all key regions [4] - Current macroeconomic conditions and increasing interest rates have presented a drag on construction activity, impacting demand for residential and commercial electrical components [24] Company Strategy and Development Direction - The company is focused on new business opportunities in the EV and universal auto segments, with nearly 80% of its $546 million new business pipeline aligned with this strategy [22][49] - The company is modernizing its compensation programs to incentivize sales force performance, emphasizing a target for electrical and EV hybrid new business wins [19] Management's Comments on Operating Environment and Future Outlook - Management noted that the ongoing slowdown in residential and commercial construction has impacted the Power Solutions business, but they remain resilient in managing the macroeconomic challenges [2] - The company anticipates stronger sales in Q2 compared to Q1, driven by new business wins and market dynamics [67] Other Important Information - The company has strong liquidity of $43 million and is evaluating a potential preferred equity raise to improve domestic liquidity [13][28] - The company is closing five facilities, expected to generate approximately $11 million improvement in adjusted EBITDA versus 2022 results [36] Q&A Session Summary Question: What is the visibility for the Power Solutions business for the rest of the year? - Management indicated that the volume softness was more weighted towards Power Solutions, and they are monitoring the situation closely [62] Question: What are the challenges at the Juarez facility? - The challenges include high labor turnover, process capabilities for new business launches, and machine condition affecting overall efficiency [79][91] Question: What is the outlook for capital expenditures this year? - The capital expenditure outlook remains in the $17 million range, net of proceeds from equipment sales [92]

Financial Performance - Net sales decreased by 0.8% year-over-year, from $128.1 million to $127.1 million[31] - Non-GAAP adjusted EBITDA decreased by $5.3 million, from $13.4 million to $8.1 million[31] - Non-GAAP adjusted EBITDA margin decreased by 406 bps, from 10.5% to 6.4%[31] - Free cash flow showed a use of $3.7 million, but was positive $2.7 million over the past 6 months[8] Segment Performance - Power Solutions sales decreased by 5.7% year-over-year due to lower volume[4, 59] - Mobile Solutions sales increased by 2.6% year-over-year due to increased pricing[86] Strategic Initiatives - Implemented a global plan to reduce indirect labor by 10% in Q2, expecting over $4 million benefit for the full year 2023[7] - Facility closures are on track, with an estimated adjusted EBITDA improvement of ~$11 million over 2022[5, 178] - New business wins increased by 75% from Q1 2022, with 76% in strategic segments[162, 180] Liquidity and Debt - Net debt to adjusted EBITDA leverage ratio was 3.82x, with liquidity of $43 million as of March 31, 2023[7] - The company is targeting a $10 million preferred equity raise to improve domestic liquidity[43] Market Outlook - Global Light Duty Vehicle Production is forecasted to increase by ~5.0% YoY in 2023[21]

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 March 31, 2023 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) Indicate by check mark whether the registrant has submitted electroni ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) 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, 2022 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 001-39268 NN, Inc. Delaware 62-1096725 (State or other jurisdiction of incorporation or organ ...

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, 2022 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 organization) 6210 Ar ...