Risk Factors Update Summary

• The company reported approximately $4.3 billion of outstanding indebtedness, a significant financial obligation.
• Cybersecurity attacks and incidents could lead to costly damages, claims, and expenses, impacting operations significantly.
• R&D expenditures increased to $479 million in 2024 from $377 million in 2022, indicating growth.
• The company is now subject to risks associated with equity investments with Denso Corporation and Mitsubishi Electric Corporation, potentially affecting financial condition.
• The company expects to incur approximately $175 million to $200 million of pre-tax costs in 2024.
• As of June 30, 2024, the backlog was approximately $2.6 billion, up from $2.3 billion in 2023, indicating growth.
• Coherent's workforce decreased from 778 employees in 2023 to 624 in 2024, impacting operational capacity.
• Coherent announced a commitment to achieve net-zero Scope 1 and Scope 2 emissions by 2040, enhancing sustainability efforts.
• The company has approximately 3,100 patents globally as of June 30, 2024, enhancing competitive position.
• The Women in Leadership Program aims to support the development and advancement of women at Coherent, fostering diversity.