Risk Factors Update Summary

• If the Nextracker Spin-off fails to qualify for tax-free treatment, significant tax liabilities could arise.
• Changes in our credit rating may make it more expensive for us to raise additional capital or borrow funds. This could significantly impact our financial flexibility.
• Sales to our ten largest customers accounted for approximately 37% of net sales in fiscal year 2024, up from 34% in previous years.
• We are committed to reducing our absolute scope 1 and scope 2 GHG emissions by 50% by 2030 and achieving net zero emissions by 2040. This commitment may incur substantial costs.
• Changes in our credit rating may increase borrowing costs, impacting our ability to raise additional capital.
• The Israel-Hamas war and attacks on shipping vessels in the Red Sea could disrupt our operations and negatively affect customer demand for our manufacturing services.
• If our compliance policies are breached, we may incur significant legal and financial exposure, affecting our operations.
• Increased focus on sustainability practices and climate-related risks may lead to additional reporting requirements and compliance costs, impacting our operational efficiency and financial performance.
• Climate change and related legal initiatives could adversely impact our business and financial results, imposing additional costs.
• The failure of Silicon Valley Bank and Signature Bank raises concerns about banking stability, which could affect our access to capital and operational liquidity.
• Our dependence on skilled personnel may limit the growth of our design and engineering services offerings.