Industrial Welding Corporation

10 R. Jacinto St., Canumay West

Valenzuela City, Metro Manila

March 10, 2022

To all our valued customers:

Due to the ongoing Russian-Ukrainian war, Industrial Welding Corporation (IWC) is faced with a crisis in
the metallic market due to the tremendous surge of Nickel prices, one of the main raw materials of
stainless steel and nickel wire.

Russia is the 3rd largest producer of Nickel and the regional instability has disrupted the market with no
certainty. In fact, the price of Nickel has skyrocketed in the last 48 hours with a stunning 250% increase.
This is unprecedented and has led the London Metal Exchange (LME) to suspend all trading.
Furthermore, all of IWC’s suppliers for stainless steel and Nickel wire have cancelled and stopped selling
to us for the time being due to Force Majeure caused by the Russian-Ukrainian war.

For almost 40 years, IWC has worked hard to mitigate cost increases through intensive purchasing
strategies; all this, while continuing to deliver the highest standard of quality. However, due to these
unforeseen circumstances caused by the Russian-Ukrainian war, IWC has no choice but to increase the
prices of our STAINLESS STEEL and CAST IRON welding electrodes as these products’ main raw
material is Nickel.

IWC values its customer relationships and that is why the Company will provide a SPECIAL PRICE
ACCOMMODATION BASED ON HALF MONTH’S AVERAGE ORDER VALUE FOR STAINLESS STEEL AND
CAST IRON WELDING ELECTRODES.

1. Allowable Accommodation: This is equivalent to half month’s average order value of STAINLESS
STEEL & CAST IRON WELDING ELECTRODES.

2. Delivery Schedule: As a general rule, IWC will schedule, deliver, and fulfill the approved
accommodation order depending on the Company’s stock inventory and delivery capacity. No staggered
or special scheduled delivery option by customers is allowed.

3. Payment Terms: The Company requires payment first via bank deposit before delivery. We will
implement a first pay, first serve basis.

4. Special Note: The Company reserves the right to reduce or cancel accommodation orders of
customers if orders do not meet the guidelines in this policy and due to situations beyond our control.

5. Validity: This special accommodation period is valid only until March 19, 2022. STRICTLY NO
EXTENSION. All orders must be placed by this date.

It is our hope that these factors will be back to normal. Until then, IWC thanks your cooperation and
understanding.

Sincerely,

Robert Ong, General Manager

(2)