Risk Factors Update Summary

• Operations expanded to more than 50 countries. International sales decreased from 72% to 69%.
• Deferred tax assets may not be realized, with a concentration in Luxembourg, requiring decades for utilization.
• Net sales decreased by approximately $359 million in 2023 compared to the prior year.
• Recent key management changes and promotions in 2023 could impact leadership transitions and hinder strategic planning.
• Debt level increased from approximately $3.10 billion in 2022 to $3.24 billion in 2023.
• Increased investment in sustainability-driven products, with acquisitions totaling approximately $231 million in 2023.
• Increased variability in stock price due to changes in stock performance, market expectations, and dividends.
• Interest rates rose from 4.25% to 4.50% in 2023, impacting borrowing costs and potentially business.
• Goodwill carrying value decreased from $1.29 billion in 2022 to $1.01 billion in 2023, potentially impacting future charges.
• Restructuring actions cost increased significantly from $8 million in 2022 to $79 million in 2023.
• Pension assets increased from approximately $585 million in 2022 to $663 million in 2023.
• Capital expenditures decreased from $298 million in 2022 to $285 million in 2023.
• Increased focus on cybersecurity measures and infrastructure improvements to mitigate security risks.
• Enhanced data loss prevention framework to protect critical data, network, and site access controls.