Chemische Fabrik Budenheim KG | Rheinstr.

27 | 55257 Budenheim | Germany Life Science Division

Jorge Flores, Moritz Fichtmüller

+49 6139 89 400

Jorge.flores@budenheim.com

July 15th, 2022

Natural gas situation in Germany

Dear Valued Customer and Partner,

we hope this letter finds you in good health. Two years after the pandemic began, we continue to
face extremely volatile and uncertain global economic conditions, where supply chains continue to
be under pressure, not only due to port congestions and city lockdowns, but also by lack of
personnel in crucial positions, such as truck drivers. Additionally, since February 2022, the Russian
invasion of Ukraine contributes heavily to the volatile environment because both countries are
strong suppliers of many essential raw materials, food ingredients and energy.

As you have seen in the news, the current ongoing planned maintenance of the gas pipeline Nord
Stream 1 that supplies natural gas from Russia to Germany has led to a temporary reduction of gas
supply to Germany. We understand that this news triggers a concern about the potential impact that
it might have for Budenheim.

At this moment, we are glad to confirm that our production site in Germany continues to operate as
scheduled. Our energy and raw materials supply remain as planned.

There are certainly risks that could eventually affect our continued operation, but these remain
highly speculative. Budenheim is investigating different scenarios and developments and a gas
committee has been formed to follow up developments on a daily basis.

One of the current most evident risks is that the price level of the natural gas in Germany might
increase drastically in the near future, way beyond what we have considered for the calculation of
our Q3 prices. The reason would be that the German authorities might give gas suppliers the chance
to terminate price contracts to be able to charge spot market prices. With this in mind, Budenheim
has started to add in all quotes and order confirmations a special clause that informs about this risk
and establishes a clear mechanism if this potential case should come into practice. We understand
that such clause triggers concern and uncertainty on your side. Therefore, we want to let you know
that the addition of the clause does not mean that we will necessarily execute it, but that we only
reserve the right to do so in case the gas price difference would be too high to bear. We will do our
utmost to limit the impact of any extra costs on our customers as much as possible.

Seat of company | Gesellschaftssitz: 55257 Budenheim, Germany 1|2

Commercial register | Handelsregister: Amtsgericht Mainz HRA 0850
 The high degree of uncertainty does not allow the description of additional concrete consequences
and corresponding measures that we might encounter. In case a major change should occur, you will
be immediately contacted by our sales team to inform you about it and also about the steps to
follow.

We take this opportunity to thank you for your understanding, your trust, and your loyalty.

Sincerely yours,

i.V. i.V.

Jorge Flores Moritz Fichtmüller

SVP, Marketing & Sales SVP, Finance & Operations

Life Science Division Life Science Division

Seat of company | Gesellschaftssitz: 55257 Budenheim, Germany 2|2

Commercial register | Handelsregister: Amtsgericht Mainz HRA 0850