Corona Crisis - Information for business partners

3/31/2020
The situation around the coronavirus has become a global problem, public health systems and economies are getting underincreasing pressure due to the virus. As a globally active company, our thoughts are with our colleagues, customers andsuppliers, who are constantly working to overcome the challenges posed by this exceptional situation.

Dear valued business partner!

The constraints imposed by government measures are increasingly affecting global supply chains. More than 50countries around the world have already restricted the freedom of movement of their citizens. In Europe, too, themeasures taken are becoming increasingly drastic and tangible. The number of new infections can be flattenedout by the measures taken by the Austrian Federal Government, which makes it possible to operate as amanufacturing industrial enterprise with hardly any restrictions. Fronius' supply chain is networked worldwide,which means that the company's performance is influenced by global developments.

In view of the developments mentioned above, we would like to inform you that there are reasons for noncompliancewith contractually agreed conditions that are beyond Fronius' control. The currentcircumstances are external and of a lasting and unforeseeable nature. The main causes of thesecircumstances are in particular the existence of unforeseeable, unavoidable and unmanageableconditions or result from force majeure. From today's perspective, we are therefore not in a position todetermine the exact effects. Consequently, it is stated that Fronius cannot be held liable for any nonfulfilmentof contractual obligations affected by the before mentioned effects.

In order to be able to react to possible influences as soon as possible, our internal supply chain risk managementhas been evaluating the current situation for weeks, looking at all areas of the supply chain. All possible effectson the areas of procurement, logistics and sales are continuously analysed and taken into account in factorymanagement together with the planning department. So far, our Supply Chain Management has been able tocushion or avoid all bottlenecks. Through close cooperation and ongoing communication with our partners, wayshave been found to keep our production running. The creation of central bodies to coordinate the current situationenables us to ensure that the same level of information is available across the board. Our colleagues areconstantly working on finding ways to ensure Fronius' performance.

If companies, regions or countries affected by the coronavirus take drastic measures that have an impact onindustrial supply chains, Fronius cannot guarantee that production will be fully supplied.

In the course of the ongoing development of the coronavirus, we will make appropriate updates and inform youas soon as possible.

Fronius International GmbH

ppa. Herbert Mühlböck

COO, Supply Chain Management