Risk Factors Update Summary

• Increased operational challenges and costs from the need to protect employee health and safety, workplace disruptions, and restrictions on movement. This change might result in higher operating expenses.
• Changes in customers' priorities and practices due to the COVID-19 pandemic impacting demand for products and solutions. This change might result in a decrease in sales.
• The company's ability to enforce and protect its intellectual property is crucial for maintaining a competitive advantage. Litigation to defend against infringement claims could result in significant costs and divert management's focus.
• Uncertainty regarding the global impact of the COVID-19 pandemic and the world's response, including the distribution and acceptance of vaccines. This change might result in continued market volatility and economic uncertainty.
• The company is subject to various litigation and legal proceedings, including claims for damages, intellectual property disputes, and regulatory investigations. Defending these lawsuits may incur significant expenses and divert management's attention.
• Risks associated with cybersecurity incidents and information security breaches, including potential impacts on the reliability and reputation of products and solutions. This change might result in financial and operational consequences.
• Environmental regulations impose controls on the company's operations, including the manufacturing, transportation, and disposal of hazardous materials. Changes in regulations may lead to higher costs or lower operating results.
• Risks related to the availability and cost of energy resources in Europe and China, including potential operational impacts and uncertainties. This change might result in disruptions to operations and increased costs.
• Risks associated with the development and introduction of new products and solutions, including potential delays, customer acceptance, and obsolescence. This change might result in a loss of customers and lower revenues.
• Risks related to manufacturing problems, including the need for timely replacement of production capacity and challenges in managing manufacturing activities. This change might result in supply chain disruptions and reduced demand for products.