Effect of COVID-19 control measures on factory output

March 18, 2020

1. Production at SANYO DENKI PHILIPPINES, INC.

With almost 200,000 cases, and close to 8,000 deaths, the current global pandemic of COVID-19 is

affecting every one of us. We at Sanyo Denki are not immune to the effects of this disaster.

On March 16, the Philippine government announced new enhanced community quarantine orders for

Luzon Island in the Philippines, in effect until April 12. Strict home quarantine shall be implemented

in all households, transportation shall be suspended, provision of food and essential services shall

be regulated, and heightened presence of uniformed personnel to enforce quarantine procedures will

be implemented.

Our production facilities at SANYO DENKI PHILIPPINES, INC. (Hereinafter referred to as “the

Philippines factory”), is located in the Subic Special Economic Zone in Luzon. Production activities

were therefore suspended on the afternoon of March 17th.

2. Clarification of impact

At this time, Sanyo Denki is still confirming details as to when we can resume production at the

Philippines factory, and products slated for delivery in the next month have been impacted.

Our factories in Japan are operating normally, and we are exploring options to utilize their services to

mitigate the production halt in the Philippines.

3. Future outlook

We will continually provide more updates on this situation as we receive them.

The world is facing an unprecedented human tragedy at this time, and we at Sanyo Denki ask for

your understanding in allowing us to provide you with our best effort under these extraordinary

circumstances.

4. Special inquiries regarding this matter

Please contact your local Sanyo Denki America sales representatives for special inquiries about this

matter.

SANYO DENKI AMERICA, INC.