Risk Factors Update Summary

• Increased net leverage ratio covenant from 3.5 to between 4.0 to 4.5 for 2024. Reduced lenders' commitment from $1.5 billion to $1.3 billion.
• Transitioning from "integrating" to "delivering" AI-enabled technologies, focusing on innovative AI solutions. This change may impact competitiveness.
• Incorporating AI technologies into business operations with a focus on responsible deployment and governance. Risks related to AI adoption and regulatory uncertainties are highlighted.
• Potential adverse impact on financial results due to AI integration and impairment charges.
• Shift from "associates" to "employees" in utilizing new technologies like AI, chatbots, and GenAI tools. This change may affect operational efficiency.
• Expansion of offerings to public sector clients may lead to longer sales cycles and increased complexity. This change could impact revenue realization timelines.
• Risks related to wage and hour class action lawsuits impacting operations and profitability.
• Increase in revenue concentration risk with the top five and ten clients representing 36% and 50% of revenue in 2023, respectively. This concentration poses a significant risk.
• Enhanced focus on cybersecurity risks, with significant investments made to prevent future cybersecurity incidents. This change aims to mitigate potential disruptions and liabilities.
• Expansion into new countries may lead to financial losses and operational instability.
• Growing reliance on third parties for data, cloud, and SaaS services may increase vulnerability. Mitigation strategies are in place, but risks of service disruptions persist.
• Impact of foreign currency exchange rate fluctuations on service delivery and financial results.
• Risks associated with international operations, including political and economic instability.
• Uncertainty in regulatory environments for AI technologies may increase costs and liability.