Risk Factors Update Summary

• Increased costs due to the unavailability or short-supply of raw materials or services may result in higher expenses.
• Potential future settlements of EO cases could lead to significant judgments impacting financial condition.
• Changes in customer relationships due to shifts in Co-60 sources could adversely affect business.
• Unionization efforts and labor regulations may increase costs or disrupt operations, affecting profitability.
• Potential decrease in availability of Co-60 due to reactor repurposing could impact operations.
• Adverse judgment in Illinois trial resulted in a $358 million judgment against the company.
• US EPA expected to propose new NESHAP regulations in 2023 based on the 2016 IRIS Assessment.
• X-ray technology may replace Co-60 gamma irradiation, impacting supply chain and pricing.
• Price increases may lead to sales volume loss, especially if competitors adjust better to cost volatility.
• Settlement of over 880 claims related to Willowbrook facility for $408.0 million finalized in June 2023.
• Proposed stricter EO regulations may impose significant additional costs on facilities for compliance.
• Competitors' expansion in sterilization capacities could lead to price fluctuations and competitive pressure.
• Failure to renew leases or facility closures due to community resistance could impact revenues.
• Inflation and market changes may impact input costs, affecting profitability and financial condition.