SUPPLY CHAIN UPDATE

September 19, 2022

Dear Edwards Partners,

I wanted to share a quick supply chain update. As previously communicated last year, the global
economy continues to face inflationary pressures, increasing shortages in commodities and semi-
conductor components and disruptive logistics and transportation challenges. This is
materializing in price increases, availability shortages and significantly longer lead times across
the economy, including our industry.

Specifically for Edwards, there are many components and raw materials used in the manufacture
of certain product lines that cannot be secured because of industry-wide shortages. We see
frequent decommits and cancellations from our suppliers that are causing increased production
delays. Although many of these shortages are unforeseen and out of Edwards' reasonable
control, we have put in place a series of tactical and strategic actions to mitigate the impact on
our customers

Tactically, we are leveraging the strength of Carrier's corporate supply chain organization to
tenaciously source shortages from our suppliers and on the broker market. Our engineering team
is also rigorously identifying component equivalencies where shortages do arise. More
strategically, we are working directly with major semi-conductor OEM manufacturers to help
ensure a larger share of our allocation and to build buffer inventory where possible. The Edwards
engineering team is largely focused on redesign activity for critical components, an activity that
can take months given performance requirements and regulatory approvals.

While we hope these steps will help mitigate these supply chain issues, we expect that there
will be shortages including some that are difficult or impossible to predict, and realistically do
not expect the situation to improve until at least end of 2022.

Edwards sincerely appreciates your patience and flexibility as we work through these conditions.
Some suggested actions that you can take include planning for additional lead time in projects
when possible and placing orders with future ship dates to help Edwards better forecast and
plan.

Please continue to use MyEddie to place your orders and follow-up with customer service
as needed to indicate any urgent, high-priority orders, which Edwards will attempt to
accommodate if possible.

Edwards will endeavor to keep all partners informed and provide additional updates as the
situation evolves.

Regards,

Faiz Afzal
MD, Edwards
Carrier Corporation