Risk Factors Update Summary

• The 2024 Notes and 2025 Term Loan maturing in the next 22 months may require significant liquidity consumption or additional financing.
• Increased geopolitical risks, including the conflict in the Middle East and uncertainty in international trade relationships, could negatively impact revenue and financial results.
• Our fiscal 2023 effective tax rates increased significantly compared to fiscal 2021 due to a change in R&D cost treatment.
• Restrictive covenants in agreements could lead to default, termination of credit commitments, and limited business operations.
• A decrease in orders due to disruptions in markets and industries could significantly affect future revenue.
• More than 130 countries agreed to adopt new tax rules, including a global minimum tax rate of 15%.
• The level of debt could intensify, increasing borrowing costs and limiting business operations and competitiveness.
• Risks associated with cybersecurity vulnerabilities and cyberattacks could materially harm business, reputation, and financial condition.
• The Korean legislature announced plans to enact legislation introducing the global minimum tax in future years.
• Interest rate swaps may involve margins ranging from 0.000% to 0.250% per annum, impacting accrued interest on borrowings.
• Changes in foreign exchange rates, with 55% of cash held outside the U.S., could impact revenue and financial results.
• Investments in AI initiatives may result in significant costs, delays, and potential liabilities if not successful.
• Acquisitions and investments involve risks such as operating difficulties, delays, and failure to realize anticipated benefits.
• Risks related to intellectual property infringement claims and litigation could seriously harm operating results and financial condition.