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4 THE DAVEY BULLETIN | July/August 2023 Q. WHAT PROGRESS HAS BEEN MADE ON DAVEY'S SAP UPDATE? We are going to work toward all the promises and potential this system has to offer, but it will take some time. The implementation team is focused first on getting the blocking and tackling, the core business functions, in place first. We can look forward to continual improvements to the system as software updates are made to SAP S/4HANA in the weeks and months to follow. We have been relying on SAP for over 20 years, but the support for our current system is ending, making this conversion a necessity. While the system is due for an upgrade, this also provides an opportunity to realize many meaningful benefits, including improved data access, an updated user interface, the digitization of many paper-based workflows, project management tracking, electronic hourly time entry and many more improvements. Change is always challenging. That said, there are a ton of good things to come from this conversion and many capabilities it offers that will improve how we do business in the long-term. The SAP S/4HANA conversion will put in place a business software solutions system that will grow with us for the next 20 years or more. It may be bumpy to start, so let's make sure we work through those bumps together. That's how we ensure the organization keeps moving toward that point where we realize all the benefits this new system has to offer. A. Our conversion to the new SAP S/4HANA ® business solutions software system is taking place in phases. The second phase of the conversion goes live in late August and will impact a portion of the company's operations. This will include Davey Resource Group, Wetland Studies and Solutions, Inc., a Davey company, and the corporate finance, fleet and human resources departments. A complete timeline of the conversion is shown on the next page. The third phase of the conversion will follow later and will impact the Davey Tree Surgery Company, The Davey Tree Expert Company of Canada, Ltd., and Wolf Tree, a Davey company. Finally, the fourth phase will affect Residential/Commercial services, Commercial Landscape Services, Eastern Utility services and the remaining corporate support departments' operations. Now is the time for all our employees to rally behind this, work together and ensure we take this across the finish line strongly. There will be some bumps. And there will be a learning curve. No one should assume this new version of SAP will work seamlessly right out of the box. We will have some adjustments to make after the initial launch. That's why we have a robust support team in place. The S/4HANA implementation team has been working hard to ensure the core business operations elements are complete, tested and functional in advance of the go-live date. It's natural to have high expectations about what the system will do right out of the gate for everybody, and to anticipate that all the bells and whistles and additional applications that will improve our organization will be available right away. But that's not how software system updates work. ASK THE CEO Pat Covey Davey Chairman, President and CEO For a timeline of the SAP S/4HANA ® Conversion, see page 5.

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