April 01, 2022

Dear valued customer,

As you have undoubtedly felt, there continue to be significant disruptions to markets worldwide. While our customers, and yours, remain at the center of everything we do, these ongoing challenges in the global supply chain, workforce shortages, COVID-19 impacts, and the Russia/Ukraine conflict have a significant effect on markets across the globe. As a result, there are impacts on prices for goods and services, the raw materials and components needed to produce them, and the ability to procure them everywhere.

Over the past several months, prices for key inputs to Sensormatic Solutions products have continued to increase and have accelerated in recent weeks following the Russian invasion of Ukraine. The increases include integrated circuits (18%), resin (15%), aluminum (37%), nickel (60%) and freight/logistics (22%) to name a few. These abrupt and broad increases in costs were unexpected and, as a result, have not been considered for orders previously placed or the higher- than-expected costs to deliver future products and services.

You may experience immediate impacts in charges associated with receiving products and services and seen on your upcoming invoices. Your Sensormatic team is proactively doing all that it can to mitigate cost increases. However, the current situation requires that we adjust for market fluctuations to assure continuity of supply for our valued customers.

As this is a dynamic situation, we will continue to review market conditions and take action to mitigate cost increases. If you have any questions, please contact your local Sensormatic Solutions sales representative. The Sensormatic Solutions Leadership Team will review these temporary measures, and we will communicate any future changes.

Thank you for continuing to allow Sensormatic Solutions the privilege of serving you. We appreciate the trust you place in us every day, and we remain committed to working on your behalf to mitigate the price effects of the current market dynamics.

Sincerely,