KE Kimball Electronics Inc.

Risks

• We may be unable to purchase a sufficient amount of materials, parts, and components for use in our products at competitive prices, in a timely manner, or at all.
• A change in our sales mix among various products could have a negative impact on our gross profit margin.
• We may not be successful in launching start-up operations.
• We may not be able to achieve maximum utilization of our manufacturing capacity.
• Our business may be harmed due to failure to successfully implement information technology solutions or a lack of reasonable safeguards to maintain data security, including adherence to data privacy laws and physical security measures.
• Our failure to maintain Food and Drug Administration (FDA) registration of one or more of our registered manufacturing facilities could negatively impact our ability to produce products for our customers in the medical industry.
• Our failure to retain the existing management team, maintain our engineering, technical, and manufacturing process expertise, or continue to attract qualified personnel could adversely affect our business.
• The cost of providing employee healthcare benefits could increase and reduce our profitability.
• Imposition of government regulations may significantly increase our operating costs in the United States and abroad.
• SEC “Conflict Minerals” regulation may increase our costs and reduce our sales levels.
• Our stock price may fluctuate significantly.
• Anti-takeover provisions in our organizational documents and Indiana law could delay or prevent a change in control.
• We cannot assure you that we will pay dividends on our stock in the future.