Risk Factors Update Summary

• Increased exposure to legal or regulatory actions due to privacy, data protection, and data security.
• All company-operated stores in Russia closed, impacting commercial activity. Additional sanctions and export controls could severely restrict business dealings, including exports to Russia. This change might result in a significant decrease in revenue from Russian operations.
• Negative impact on business operations, reputation, revenues, and profits due to violations of laws.
• Operations in Russia are not significant, but the recent Israel-Hamas crisis adds uncertainty. Potential disruptions in global markets, supply chains, and logistics could adversely affect business operations and financial performance.
• Potential adverse effects on business and financial condition due to violations resulting in criminal or civil sanctions.
• Distribution centers face disruptions due to labor shortages, aging technology, and driver shortages. These disruptions are expected to continue, impacting sales volume and profitability.