Risk Factors Update Summary

• Delays in construction projects and failure to manage inventory could materially affect demand and average selling price of our products.
• The U.S. Treasury Department's proposed regulations on domestic content bonus credits may significantly impact our compliance costs and operational strategies.
• As a newly public company, we face increased costs and management attention due to compliance. This change might result in higher operational expenses.
• Our largest customer constituted 5% of total trade accounts receivable, down from 15%. This change might result in reduced revenue concentration risk.
• Interest rates are expected to rise, potentially reducing financing availability for solar projects, which could limit our growth and sales.
• We are required to prepare and distribute periodic reports under SEC regulations, increasing compliance obligations. This could strain resources and management focus.
• Competition for skilled personnel is intense, making it challenging to attract and retain qualified employees. This could limit our strategic efforts and operational effectiveness.
• Errors, defects, or poor performance in our products could lead to significant costs, including recalls and lost revenue.
• The introduction of tariffs on solar modules and components could increase costs and adversely affect the financial viability of solar energy projects.
• Litigation and regulatory investigations may have a material adverse effect on our business, potentially leading to substantial damages. This could significantly impact our financial condition.
• Cybersecurity attacks are evolving, with potential breaches affecting sensitive information and operations, increasing operational risks and costs.
• Evolving regulatory uncertainty regarding ESG practices may result in reputational harm and loss of customer confidence, impacting our financial results.
• The Tax Matters Agreement restricts Nextracker from certain actions, potentially impairing strategic initiatives. This could adversely affect our business and financial condition.
• We may face claims related to privacy and data protection, which could result in significant legal costs and reputational damage.
• Changes in privacy laws may complicate compliance efforts and increase costs, impacting our operational efficiency and financial condition.