Risk Factors Update Summary

• The decline in U.S. imports of consumer goods has contributed to weakened economic conditions for transportation. This change might result in lower freight volumes affecting results in 2024.
• New regulations, including the European Sustainability Reporting Standards, may increase compliance costs significantly. This could lead to increased operational expenses.
• We expect inflation and high interest rates to negatively affect consumer and business spending. This change might result in reduced demand for our transportation services.
• The purchase of carbon offset credits to meet the 2040 carbon neutrality goal could add fluctuating costs due to uncertain pricing.
• In June 2024, we announced a workforce reduction plan in Europe, subject to an 18-month consultation process. If not implemented successfully, future financial results may suffer.
• Increased legislative activity regarding artificial intelligence poses risks, including compliance with the EU's Artificial Intelligence Act and U.S. executive orders.
• Geopolitical conflicts, including those in Russia and Ukraine, may adversely affect our business and results. The broader consequences could include sanctions and disruptions in international trade.
• The potential for climate litigation could result in significant financial liabilities as stakeholders seek damages related to GHG emissions.
• Compliance with new environmental regulations regarding GHG emissions could impose substantial costs on us, including increased fuel costs and investments in infrastructure updates.
• Recent elections may lead to reforms affecting trade policies, taxes, and technological advancements, impacting operational strategies and costs.