Risk Factors Update Summary

• New SEC rules require enhanced disclosure on cybersecurity risks and incidents, potentially incurring undisclosed costs.
• Escalating tensions in the Middle East and the conflict between Russia and Ukraine may hinder material sourcing, with costs expected to continue rising in 2024.
• Increased borrowing limit from $750 million to $850 million may impact leverage ratios and obligations.
• Increased costs and inflation levels are expected to persist in 2023, impacting margins and profitability.
• Issuance of $747.5 million Convertible Senior Notes due 2029 may affect liquidity and operations.
• Sales prices and volumes in China were negatively impacted by the VBP policy, leading to decreased revenues.
• Broad discretion in fund use from Convertible Notes may lead to ineffective investments, impacting financials.
• Failure to integrate acquired businesses may adversely impact financial results, with significant costs incurred for acquisitions.
• Fluctuations in foreign currency exchange rates may negatively impact financial results.
• Regulatory compliance challenges and potential sanctions could result in reputational harm, operational delays, and financial penalties.
• Changes in tax laws or rates could affect effective tax rate, financial condition, and operations.
• Increased scrutiny and regulation by governmental authorities may negatively affect sales and financial results.
• Cybersecurity risks are increasing in frequency and sophistication, potentially disrupting operations and data security.