Kimball Electronics, Inc.

We have eight manufacturing facilities with two located in Indiana, two in Mexico, and one located in each of Poland, Romania, China, and Thailand. These facilities occupy approximately 1,499,000 square feet in aggregate, substantially all of which are owned. We lease a facility in the Netherlands to accommodate our support services there. In addition, we own a 42,000 square-foot building to house our headquarters located in Jasper, Indiana. Additionally, we executed a lease for a third manufacturing facility in Indiana to expand our medical CMO footprint and production has not started. This lease adds 308,000 square feet. When the leased facility is fully operational, it will replace the existing Indianapolis, Indiana facility. Our Tampa facility, excluded from above, is classified as held for sale, see Note 4 - Restructuring Activities of Notes to Consolidated Financial Statements for more information.

Generally, our manufacturing facilities are utilized at normal capacity levels on a multiple shift basis. At times, certain facilities utilize reduced shifts due to demand and sales fluctuations. We continually assess our capacity needs and evaluate our operations to optimize our service levels by geographic region. See Item 1A - Risk Factors for information regarding financial and operational risks related to our international operations.

Significant loss of income resulting from a facility catastrophe would be partially offset by business interruption insurance coverage.

We hold a land lease for our facility in China that expires in fiscal year 2056 and one for our facility in Thailand that expires in fiscal year 2030. See Note 1 - Business Description and Summary of Significant Accounting Policies of Notes to Consolidated Financial Statements for additional information concerning leases. In addition, we own approximately 71 acres of land which includes land where our facilities reside.