DIRECTORS OFFICERS

Robert G. Ruhlman Robert G. Ruhlman

Chairman, President, and CEO Chairman, President, and CEO

Glenn E. Corlett Dennis F. McKenna

PLP PROTECTS THE WORLD’S Dean Emeritus, College of Business–Ohio University

Maegan A. R. Cross
Chief Operating Officer

Andrew S. Klaus
MOST CRITICAL CONNECTIONS Director, Laurel Fund Chief Financial Officer

TO CREATE STRONGER AND Matthew D. Frymier

Former Chairman, Chicago Stock Exchange
John M. Hofstetter
Executive Vice President, U.S. Operations
MORE RELIABLE NETWORKS. Managing Director, Financial Technology Partners
William H. Haag III
Richard R. Gascoigne Vice President, Asia Pacific
Our precision-engineered solutions are trusted by Former Managing Director, Marsh Inc.
John J. Olenik
energy and communications providers worldwide Michael E. Gibbons Vice President, Research and Engineering
to perform better and last longer. With offices and Senior Managing Director, Brown Gibbons Lang & Company
Timothy J. O’Shaughnessy
manufacturing facilities in over 20 countries, PLP R. Steven Kestner Vice President, Human Resources
Former Chairman, Senior Partner, Baker & Hostetler LLP
works as a united global corporation, delivering J. Ryan Ruhlman
J. Ryan Ruhlman Vice President, Marketing and Business Development
high-quality products and unparalleled service to Vice President, Marketing and Business Development
Caroline S. Vaccariello
customers around the world. David C. Sunkle General Counsel and Corporate Secretary
Former Vice President, Research, Engineering, and Manufacturing

GLOBAL OPERATIONS
Argentina Malaysia
Buenos Aires, Argentina Selangor, Malaysia

Australia Mexico
Sydney, Australia Querétaro, Mexico

Austria New Zealand

Dornbirn, Austria Auckland, New Zealand

Brazil Poland
São Paulo, Brazil Bielsko-Biała, Poland
Curitiba, Brazil Russia
Canada Moscow, Russia
Cambridge, Ontario, Canada South Africa
Lachine, Québec, Canada Pietermaritzburg, Republic of South Africa
China Spain
Beijing, China Sevilla, Spain
Colombia Thailand
Medellín, Colombia Bangkok, Thailand
Czech Republic United Kingdom
Prostějov, Czech Republic Andover, Hampshire, England
France United States
Paris, France Cleveland, Ohio (Global Headquarters)
Indonesia Rogers, Arkansas
Bekasi, Indonesia Albemarle, North Carolina

India Vietnam
Mumbai, India Ho Chi Minh City, Vietnam

A copy of PLP’s code of conduct is posted at plp.com in the “About Us” section.
LETTER TO
SHAREHOLDERS
The design of this year’s cover celebrates our crossing the
$500 million mark for the first time in our 74-year history.
Many of you will recognize the style as having been borrowed
from The Beatles, the eponymous 1968 release which is also
colloquially known as The White Album.

The idea for this was initially conceived by COO, Dennis

McKenna, in 2018 when we crossed the $400 M mark for
the first time but Dennis and I decided to wait until the more
momentous $500 M milestone for which the Company had
established, in 2016, a well defined plan to achieve in five
years. We did it! And marking the celebration with this design
is even more fitting today than it would have been a short three
years ago.

The White Album is the only double album of original material to

ever be released by the band. It is also known for the broad
diversity of musical genres including British blues, rock, ska,
folk, progressive and avant-garde. This is reflective of the
broad range of manufacturing capabilities that PLP has in its
quiver as well as the diversity of our product lines, ranging
from “simple” formed wire products to extremely sophisticated
tribute to the importance of manufacturing product in locally
closures protecting essential fiber optic connections in the
focused facilities, particularly the United States of America.
harshest conditions. With our testing and inspection services
In order to service the growing demand with the quality
capabilities we have added a service element to our catalogue products and exceptional service that have brought us to this
to further leverage our engineering talents. In yet another, point, we have an 82,000 sq. ft. addition under way in Rogers,
logical extension of our engineering and manufacturing Arkansas with additional plant expansions and relocations
expertise, we have entered the electric vehicle (EV) market with in the works in North America and Europe. These will
our charging station designs, highlighted nearby. complement two recent acquisitions, one each in Brazil and the
Czech Republic. Our growth has been and continues to be, a
Credit for the wonderful sales achievement of the past several
healthy mix of organic growth and strategic acquisition.
years goes to every one of our 3000+ brothers and sisters
spread among our now 25 operations in 22 countries. This The past several years have been extremely busy ones for PLP
geographic diversity provides the Company with an element of and indeed, turbulent ones for everyone around the world. 2022
stability particularly when faced with the supply chain issues looks to be every bit as frenetic, if not more so, than what we
everyone continues to contend with, as well as allowing for have successfully navigated to this point. First and foremost
stronger markets to support weaker ones. Nowhere has this as I write this, the war in Ukraine continues with growing
been more evident than in the outstanding performance of global humanitarian and economic implications. Add to that a
our plants in Rogers, Arkansas and Albemarle, North Carolina decidedly anti-business administration in Washington waging
over the past few years. In helping to cross that $500 M mark, an inexplicable war on fossil fuels in this country, no sign of
Rogers and Albemarle smashed all sorts of shipment records, 40-year high inflation abating anytime soon, sharply rising
some for the third and fourth year in a row. The demand for commodity prices and shortages along with projected interest
products from these operations is well distributed across rate increases and predicting the future just gets tougher
the energy and communications spectrum as well as being a all the time.
But, we’ve demonstrated over and over again that the PLP
family has the talent, dedication and nimbleness to adapt
quickly to an uncertain and constantly changing environment.
That allows us to face uncertainty with a quiet confidence and
steely resolve. In that sense, 2022 will be no different.

As always, I am extremely grateful to our employees and their

families for their commitment and tireless efforts that make
PLP The Connection You Can Count On and to our customers,
vendors and shareholders for their support. It is an honor and a
privilege to be part of the PLP family. IN MEMORIAM
Now, on with the challenge of making 2022, our 75th year, the
best ever!

BARBARA
Care to guess what next year’s Annual Report cover will
PETERSON
look like?
RUHLMAN
Barbara was the daughter of PLP’s founder, Tom Peterson,
the wife of his successor, Jon Ruhlman, mother to the
current president and CEO, Rob Ruhlman, and grandmother
to Ryan Ruhlman, vice president of marketing and
ROBERT G. RUHLMAN business development and Maegan Cross, board member.
CHAIRMAN, PRESIDENT, AND CEO Barbara was a longtime volunteer and philanthropist,
and her efforts have made a tremendous impact in PLP’s
hometown of Cleveland, Ohio. She also served on the
company’s board of directors.

JERRY
JOHNSON
Jerry was the second person hired when the
Rogers, Arkansas plant opened in 1969. He held many
different positions at Rogers throughout his 48 years of
service to PLP, ultimately becoming the plant’s operations
manager. Jerry was the definition of a work hard, play hard
mentality: he had extensive knowledge of plant operations,
but he also loved life, loved people, and loved the company.
His enthusiasm was contagious, and he left an indelible
mark on the Rogers plant and PLP operations worldwide.
FINANCIAL
HIGHLIGHTS

A LES
NET S

IN THOUSANDS OF DOLLARS, EXCEPT PER SHARE DATA

2021 2020
2020 2019
NET SALES $517,417 $466,449 $444,861

PRE-TAX INCOME 48,896 40,571 31,458

NET INCOME 35,721 29,761 23,336

NET INCOME PER SHARE BASIC 7.28 6.05 4.63

NET INCOME PER SHARE DILUTED 7.19 5.98 4.58

SHAREHOLDERS’ EQUITY 316,100 292,069 268,568

SHAREHOLDERS’ EQUITY PER SHARE 63.60 58.60 52.79

ANDREW S. KLAUS
CHIEF FINANCIAL OFFICER

PLP posted a third consecutive year of record annual net operational capacity of our largest manufacturing facility which
sales and consecutive record earnings per share in 2021. is located in Rogers, Arkansas. We also recently funded two
The record annual net sales was driven by PLP USA’s 28% acquisitions—both of which were finalized during Q1 2022—
sales growth. This outstanding performance more than offset and will further invest in upgrades to equipment and
the general weakness that we recorded in the other regions technology, including robotics and automation to optimize cost
on a currency-adjusted basis. Most impactful was the Asia- structure; and the continued advancement of our products and
Pacific region’s net sales decline of 12% as COVID-19 more services through research, design, and experimentation.
dramatically affected them, resulting in the customer base Our long-term growth continues to be underpinned with the
postponing large government-sponsored infrastructure evaluation of strategic product and business acquisitions that
projects to focus on coronavirus-related healthcare and further our importance to our global energy, communications,
stimulus. and special industries customer base.

Our balance sheet remains strong, with only a minimal

increase in trade working capital required to support our
record net sales for 2021. Cash flow from operating activities
decreased nearly 19% from 2020, due in large part to the
increase in trade working capital to support increased demand.
Debt payments against the line of credit borrowing enabled
an increase in liquidity as of December 31, 2021.

The record net sales, moderately increased trade working

capital, and increased liquidity provide us with the confidence
and resources needed to continue investing in the business to
meet the growing demand from our global customer base.
Significant investments are underway to increase the
THE BRAND
YOU CAN COUNT ON
As PLP continues to expand and diversify globally, a strong BRAND IDENTITY
and consistent brand identity is essential. Through various
expansion efforts, partnerships, and acquisitions, PLP’s focus MISSION STATEMENT
We protect the world’s most critical connections
has always been to strengthen the core brand and further
solidify the company as the premier supplier of critical
VISION STATEMENT
infrastructure solutions worldwide. But just as the company
To create stronger and more reliable networks
continues to evolve, so too must the PLP brand.
VALUES
Over the past two years, PLP’s corporate marketing
Meticulous Authentic
communications team has been leading a comprehensive and
strategic global project to modernize, solidify, and unify the PLP Knowledgeable Trustworthy
brand identity. Earlier this year, PLP released several exciting Responsive Enthusiastic
enhancements to key brand elements. These fundamental
components were designed to honor our past and help us LOGO
transition to the future. While the strength of the PLP brand is The bolder lines of the new logo reflect modern design

strategically communicated through these new elements, the aesthetics, and the upward trajectory of the helicals

foundation for that strength continues to be our dedicated team honor the company’s heritage and signify growth

members throughout the world who work hard to ensure we and optimism.

live up to our own high standards in engineering, quality, and

service. Thanks to these efforts, the PLP brand is now stronger
than ever.

PRODUCT CATALOG PRODUCT CATALOG PRODUCT CATALOG

COYOTE® FIBER OPTIC SOLUTIONS WILDLIFE MITIGATION SOLUTIONS FIBERLIGN® ADSS HARDWARE
Relocate | Protect | Divert | Prevent
Fiber Optic Closures | Pre-Terminated Cabinets Cable Dead-Ends | Cable Supports & Suspensions | Cable Storage Solutions
NIDs | Passive Optical Components | Connectivity Solutions Motion Control Products | Cable Protection & Identification Products
RISING ABOVE TO
DELIVER RECORD SALES
At the end of 2020, businesses around the world began manufacturing suffered, PLP’s U.S. manufacturing was key in
reopening, creating a surge in product demand in 2021 that left allowing the company to continue supplying products to major
several challenges in its wake. The economy was making a U.S. utilities and communications service providers. To further
comeback, but businesses were facing pandemic-related labor build on this success, PLP is now in the process of expanding
shortages and a scarcity of raw materials. In addition, the Rogers, Arkansas plant to increase its production
companies near and far were trying to connect the links of a capabilities. When complete, this expansion will add a total of
broken global supply chain. Despite all of those challenges, PLP 82,000 square feet to the facility.
set a new sales record in 2021, surpassing the $500 million
For a year that many hoped would be easier, 2021 instead
mark for the first time.
introduced a new set of challenges for businesses. PLP took
To hit this milestone, PLP’s global operations worked together these challenges in stride, though, achieving record sales in a
to locate materials, qualify new suppliers, and find new carriers difficult year by working together as one global team to rise
and routes for freight. Our manufacturing facilities increased above the circumstances and continue delivering the
production by adding staff and working overtime, coming high-quality products and unparalleled service customers
together to ship a record number of products in 2021. A strong have come to expect from us.
U.S. manufacturing presence, in particular, allowed PLP to
circumvent port bottlenecks and material shortages by moving
supplies and products throughout North America. While
competitors depending solely on overseas materials and

ROGERS PLANT EXPANSION

$16 MILLION INVESTMENT IN MANUFACTURING FACILITY
Adds 56,000 square feet of warehouse space
Adds 26,000 square feet to injection molding area
Scheduled completion: November 2022
The SunFollow™ Solar Tracker tilts panels
to maximize sunlight exposure.

LiDAR images help utilities monitor encroaching vegetation. Drone’s-eye view as it installs RAPTOR CLAMP™ Bird Diverters
in a remote area of Hawaii.
MARKET
HIGHLIGHTS
COMMUNICATIONS INSPECTION & INSTALLATION SERVICES
INFRASTRUCTURE IMPROVEMENTS LIDAR INSPECTIONS

With many employers permanently shifting to remote or Since its inception, PLP Inspection Services has utilized
hybrid work models, the demand for reliable broadband advanced technologies for its customers, enabling them
internet has never been higher. Communications service to provide a better view of overall asset condition, and
providers are working at a rapid pace, deploying ultimately helping to increase utility reliability. Inspection
broadband infrastructure improvements that can support Services is now offering advanced LiDAR technology with
higher speeds and heavier traffic. Many rural areas even its asset inspections. Light Detecting and Ranging, or
receive government funding to develop the minimum LiDAR, uses light in the form of a pulsating near-infrared
communications networks necessary to support jobs, laser to collect measurements and create precise, three-
schools, and other essentials. These critical dimensional models of the surrounding landscape, which
improvements have created explosive growth in PLP’s are then analyzed and used to assess various risk factors.
COYOTE® line of fiber optic splice closures and related In 2021 alone, Inspection Services scanned over 10,000
communications product solutions, including FIBERLIGN® kilometers of utility rights-of-way in New Zealand using
pole line hardware. LiDAR sensors to help identify encroaching vegetation.
Providing adequate clearance for power lines is critical in
reducing wildfire risks, unexpected outages, and other
ELECTRIC POWER dangers to nearby communities and the environment.
STRING HARDWARE SOLUTIONS By adding LiDAR to their regular inspections, utilities are
deploying an effective and efficient technology that can
PLP has recently expanded its hardware fittings to offer
help increase power line safety and reliability.
customers complete string hardware packages.
Leveraging nearly 75 years of experience in the
transmission market, PLP designs optimal hardware SOLAR
packages that help utilities build new projects from the
SUNFOLLOW™ SOLAR TRACKER
ground up. While PLP has always been a quality-driven
supplier of suspensions, dead-ends, dampers, and PLP Spain will soon release SunFollow, a single-axis
spacers, we now manufacture yoke plates and attachment tracker that will expand the company’s commercial and
hardware as well. Investing in tooling for these additional utility solar product offering. The solar tracker uses a
components has allowed PLP to stay competitive in the motorized mount to tilt solar panels to match the sun’s
market by becoming a complete transmission solution position in the sky. This movement maximizes sunlight
provider, offering comprehensive string hardware packages exposure for the panels, and in turn, maximizes the
for lines ranging from 115 kV to 500 kV. amount of electricity generated. The SunFollow
tracker has a design superior to others on the market
DRONE INSTALLED BIRD DIVERTERS as it contains minimal obstructions between rows and
In a recent Installation Services project, PLP partnered with reduces field installation time due to fewer parts and no
Kauai Island Utility Cooperative in Hawaii to help protect on-site cutting or welding. PLP Spain plans to release the
local endangered bird species by placing PLP’s RAPTOR SunFollow tracker to its local market in 2022, and it will
CLAMP Bird Diverters on several power lines. Using a
™ ultimately become an internationally-available product.
specialized drone system capable of placing multiple
diverters in one flight, PLP placed 200 bird diverters,
spacing them over four energized power lines. This project
will help enhance visibility for Kauai’s endangered birds for
years to come.
Field installation of the EV Charging Station Foundation.
LOOKING TO
THE FUTURE
ELECTRIC VEHICLE MARKET GLOBAL SUBSTATION BUSINESS
Electric vehicle (EV) use is rapidly accelerating around PLP recently acquired Maxxweld Conectores Elétricos Ltda.
the world, offering a greener, brighter future for all. To Maxxweld, a market leader in Brazil, designs and manufactures
accommodate the sharp increase in EV use in the substation connector systems and accessory hardware for
coming years, residential and commercial contractors high-voltage AC systems. The acquisition of Maxxweld will
will need pre-fabricated solutions, like PLP’s charging greatly increase PLP’s operational and technical capabilities
station foundation and wall mount. in South America. In recent years, PLP has worked to expand
its overall global substation strategy by acquiring Electropar
EV CHARGING STATION FOUNDATION Limited in New Zealand, SubCon Electrical Fittings in Austria,
This durable polypropylene foundation requires no and now Maxxweld in Brazil. These acquisitions strengthen our
specialized machinery and can be installed by one operational presence in different areas of the world, allowing
person in one day. Its design adapts to fit a wide range PLP to better serve regional power customers and further
of chargers and charger poles currently on the market, expand our expertise in the substation market.
and the aluminum top plate provides a clean finish and
easy access point for repairs and future upgrades.
COMMUNICATIONS ASSET INSPECTIONS
EV CHARGING STATION WALL MOUNT PLP Inspection Services is now offering communications
This wall mount is a pre-fabricated electric charger service providers a safe and efficient method of capturing
mount that fits over a 4” x 4” plug box. The wall mount data for field validation and fiber make-ready surveys. With
allows the customer to simply plug in their charging the communication sector’s rapid growth and need to meet
unit of choice and store the charging cable in a clean, rural broadband rollout initiatives, PLP’s asset inspections are
easy, and attractive way. well positioned to help companies evaluate asset conditions,
prioritize maintenance, and prepare for additional product
deployments.
GLOBAL
HIGHLIGHTS
HEADQUARTERS
Cleveland, Ohio

CANADA
Record fiber optic closure sales,
launched Canadian compression
hardware program
UNITED STATES
28% sales growth, marking a fourth
consecutive year of record annual net sales

MEXICO
Introduced two new injection
molding machines

COLOMBIA
Significant growth & record
sales in ADSS solutions

BRAZIL
Instrumental in Maxxweld acquisition &
reported 35% increase in telecom sales

ARGENTINA
147% increase in telecom sales
GREAT BRITAIN FRANCE
Significant growth of fiber optic Increased sales 30% over 2020 & RUSSIA
fittings for UK FTTH rollout relocated to a larger building with an Record sales of spiral
integrated warehouse vibration dampers

POLAND
SPAIN Record intercompany CHINA
Developed a motorized single-axis sales driven by international Transitioned to new
solar tracker which will expand transmission market state-of-the-art facility in Tianjin
the company’s solar product offering

VIETNAM
Expansion of solar business
across Vietnam

THAILAND
Helped establish PLP
India & completed first
turnkey solar ground
mount project

AUSTRIA MALAYSIA
Secured major substation Achieved a breakthrough into new
project for the Philippines in telecommunications markets
cooperation with PLP where strong growth is expected
Indonesia & PLP Malaysia to continue

AUSTRALIA
CZECH REPUBLIC
Expanded substation sales,
Launched extensive new product INDONESIA
providing components for
line supporting HD connectivity Supplied additional transmission
major utilities & government
solutions for FTTH, GPON, and hardware for the Sumatra
energy initiatives
5G networks 500 kV line

INDIA NEW ZEALAND

SOUTH AFRICA PLP India established in Mumbai Completed LiDAR inspections
Record growth in telecommunications sector covering over 10,000 km
 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 2021
or
☐ Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 for the Transition Period From
________To _______
Commission file number 0-31164

Preformed Line Products Company

(Exact name of registrant as specified in its charter)
Ohio 34-0676895
(State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.)
660 Beta Drive
Mayfield Village, Ohio 44143
(Address of Principal Executive Office) (Zip Code)

(440) 461-5200
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Trading
Title of each class Symbol(s) Name of each exchange on which registered
Common Shares, $2 par value per share PLPC NASDAQ
Securities registered pursuant to Section 12(g) of the Act: (None)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90
days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth
company. See definitions of “accelerated filer,” “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange
act.

Large accelerated filer ☐ Accelerated filer ☒

Non-accelerated filer ☐ Smaller Reporting Company ☐

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over
financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
☒
Auditor Name: Ernst and Young LLP Auditor Firm ID: 0042
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
The aggregate market value of voting and non-voting common shares held by non-affiliates of the registrant as of June 30, 2021 was $169,834,006 based on the closing
price of such common shares, as reported on the NASDAQ National Market System. As of March 1, 2022, there were 4,909,855 common shares of the Company ($2
par value) outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Definitive Proxy Statement for the Annual Meeting of Shareholders to be held May 10, 2022 are incorporated by reference into Part III, Items 10, 11, 12,
13 and 14.
 Table of Contents

Page
Part I.
Item 1. Business 5
Item 1A. Risk Factors 10
Item 1B. Unresolved Staff Comments 13
Item 2. Properties 14
Item 3. Legal Proceedings 14
Item 4. Mine Safety Disclosures 14
Item 4A. Information about our Executive Officers 14
Part II.
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity 16
Securities
Item 6. Selected Financial Data 17
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 18
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 27
Item 8. Financial Statements and Supplementary Data 28
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 58
Item 9A. Controls and Procedures 58
Item 9B. Other Information 60
Item 9C. Disclosure Regarding Foreign Jurisdictions that Require Inspections 60
Part III.
Item 10. Directors, Executive Officers and Corporate Governance 60
Item 11. Executive Compensation 60
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 60
Item 13. Certain Relationships, Related Transactions, and Director Independence 60
Item 14. Principal Accounting Fees and Services 60
Part IV.
Item 15. Exhibits and Financial Statement Schedules 61

2
 Forward-Looking Statements

This Form 10-K and other documents filed with the Securities and Exchange Commission (“SEC”) contain forward-looking
statements regarding Preformed Line Products Company’s (the “Company”) and the Company’s management’s beliefs and expectations.
As a general matter, forward-looking statements are those focused upon future plans, objectives or performance (as opposed to historical
items) and include statements of anticipated events or trends and expectations and beliefs relating to matters not historical in nature.
Such forward-looking statements are subject to uncertainties and factors relating to the Company’s operations and business environment,
all of which are difficult to predict and many of which are beyond the Company’s control. Such uncertainties and factors could cause
the Company’s actual results to differ materially from those matters expressed in or implied by such forward-looking statements.

The following factors, among others, could affect the Company’s future performance and cause the Company’s actual results to
differ materially from those expressed or implied by forward-looking statements made in this report:
 The overall demand for cable anchoring and control hardware for electrical transmission and distribution lines on a
worldwide basis, which has a slow growth rate in mature markets such as the United States (“U.S”), Canada, Australia and
Western Europe and may grow slowly or experience prolonged delay in developing regions despite expanding power needs;
 The potential impact of global economic conditions on the Company’s ongoing profitability and future growth opportunities
in the Company’s core markets in the U.S. and other foreign countries, which may experience continued or further instability
due to political and economic conditions, social unrest, acts of war, military conflict, international hostilities or the
perception that hostilities may be imminent, terrorism, changes in diplomatic and trade relationships and public health
concerns (including viral outbreaks such as COVID-19). The COVID-19 pandemic has significantly impacted worldwide
economic conditions and has and could continue to have an adverse effect on the Company’s operations and businesses as
government authorities could continue to impose mandatory closures, work-from-home orders and social distancing
protocols along with other unknown potential restrictions. The duration and scope of the COVID-19 pandemic cannot be
predicted, and therefore, any anticipated negative financial impact to the Company’s operating results cannot be reasonably
estimated;
 The ability of the Company’s customers to raise funds needed to build the infrastructure projects their customers require;
 Technological developments that affect longer-term trends for communication lines, such as wireless communication;
 The decreasing demand for product supporting copper-based infrastructure due to the introduction of products using new
technologies or adoption of new industry standards;
 The Company’s success at continuing to develop proprietary technology and maintaining high quality products and
customer service to meet or exceed new industry performance standards and individual customer expectations;
 The Company’s success in strengthening and retaining relationships with the Company’s customers, growing sales at
targeted accounts and expanding geographically;
 The extent to which the Company is successful at expanding the Company’s product line or production facilities into new
areas or implementing efficiency measures at existing facilities;
 The effects of fluctuation in currency exchange rates upon the Company’s foreign subsidiaries’ operations and reported
results from international operations, together with non-currency risks of investing in and conducting significant operations
in foreign countries, including those relating to political, social, economic and regulatory factors;
 The Company’s ability to identify, complete, obtain funding for and integrate acquisitions for profitable growth;
 The potential impact of consolidation, deregulation and bankruptcy among the Company’s suppliers, competitors and
customers and of any legal or regulatory claims;
 The relative degree of competitive and customer price pressure on the Company’s products;
 The cost, availability and quality of raw materials required for the manufacture of products and any tariffs that may be
associated with the purchase of these products. The Company’s supply chain could continue to be disrupted by the COVID-
19 pandemic which could have a material, adverse effect on the ability to secure raw materials and supplies;
 Strikes, labor disruptions and other fluctuations in labor costs;

3
  Changes in significant government regulations affecting environmental compliances or other litigation matters;
 Security breaches or other disruptions to the Company’s information technology structure;
 The telecommunication market’s continued deployment of Fiber-to-the-Premises;
 The effects of the potential enactment of the U.S. Build Back Better Plan which could potentially increase the U.S. federal
corporate income tax rate on U.S. income and, also, reduce tax credits from foreign sourced income; and
 Those factors described under the heading “Risk Factors” on page 10.

In light of these risks and uncertainties, the Company cautions you not to place undue reliance on these forward-looking
statements. Any forward-looking statements that the Company makes in this report speaks only as of the date of such statement, and the
Company undertakes no obligation to update any forward-looking statement or to publicly announce the results of any revision to any
of those statements to reflect future events or developments. Comparisons of results for current and any prior periods are not intended
to express any future trends or indications of future performance, unless specifically expressed as such, and should only be viewed as
historical data.

4
 Part I

Item 1. Business
Background
Preformed Line Products Company together with its subsidiaries (the “Company”) is an international designer and manufacturer
of products and systems employed in the construction and maintenance of overhead, ground-mounted and underground networks for
the energy, telecommunication, cable operators, information (data communication) and other similar industries. The Company’s
primary products support, protect, connect, terminate and secure cables and wires. The Company also provides solar hardware systems
and mounting hardware for a variety of solar power applications. The Company’s goal is to continue to achieve profitable growth as a
leader in the research, innovation, development, manufacture and marketing of technically advanced products and services related to
energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in familiar
markets.

The Company serves a worldwide market through strategically located domestic and international manufacturing facilities. Each
of the Company’s domestic and international manufacturing facilities have obtained an International Organization of Standardization
(“ISO”) 9001:2015 Certified Management System Certificate. The ISO 9001:2015 certified management system is a globally recognized
certified quality standard for manufacturing and assists the Company in marketing its products throughout the world. The Company’s
customers include public and private energy utilities and communication companies, cable operators, financial institutions,
governmental agencies, contractors and subcontractors, distributors and value-added resellers. The Company is not dependent on a
single customer or small group of customers. No single customer accounts for more than 10% of the Company's consolidated revenues.

The Company’s products include:

 Energy Products
 Communications Products
 Special Industries Products

Energy Products are used to support, protect, terminate and secure both power conductor and fiber communication cables and to
control cable dynamics (e.g., vibration). Formed wire products are based on the principle of forming a variety of stiff wire materials
into a helical (spiral) shape. Advantages of using the Company’s helical formed wire products are that they are economical, dependable
and easy to use. The Company introduced formed wire products to the power industry over 70 years ago and such products enjoy an
almost universal acceptance in the Company’s markets. Related products include hardware for supporting and protecting transmission
conductors, spacers, spacer-dampers, stockbridge dampers, corona suppression devices and various compression fittings for dead-end
applications. Energy products were approximately 61%, 66% and 67% of the Company’s revenues in 2021, 2020 and 2019, respectively.

Communications Products, including protective closures, are used to protect fixed line communication networks, such as fiber
optic cable or copper cable, from moisture, environmental hazards and other potential contaminants. The protective closures also support
Fiber-to-the-Premises ("FTTP") applications by carrying fiber optic technology into homes and businesses. In addition to closures, the
Company supplies the communication industry with formed wire products to hold, support, protect and terminate the copper wires and
cables and the fiber optic cables used by that industry to transfer voice, video or data signals. Communications products were
approximately 30%, 24% and 22% of the Company’s revenues in 2021, 2020 and 2019, respectively.

Special Industries Products include hardware assemblies, pole line hardware, resale products, underground connectors, solar
hardware systems, guy markers, tree guards, fiber optic cable markers, pedestal markers and urethane products. They are used by
energy, renewable energy, communications, cable and special industries (i.e., metal building, tower and antenna industries, the
agriculture and arborist industries, and marine systems industry) for various applications and are defined as products that complement
the Company’s core line offerings. Special industries products were approximately 9%, 10% and 11% of the Company’s revenues in
2021, 2020 and 2019, respectively.

International Operations
The international operations of the Company are essentially the same as its domestic ("PLP-USA") business. The Company
manufactures similar types of products in its international plants as are sold domestically, sells to similar types of customers and faces
similar types of competition (and in some cases, the same competitors). Sources of supply of raw materials are not significantly different
internationally. See Note M in the Notes to Consolidated Financial Statements for information and financial data relating to the
Company’s international operations that represent reportable segments.

5
Sales and Marketing
Domestically and internationally, the Company markets its products through a direct sales force and manufacturing
representatives. The direct sales force is employed by the Company and works with manufacturers’ representatives, as well as key direct
accounts and distributors who also buy and resell the Company’s products. The manufacturer’s representatives are independent
organizations that represent the Company as well as other complimentary product lines. These organizations are paid a commission
based on the sales amount they generate.

Research and Development

The Company is committed to providing technical leadership through scientific research and product development in order to
continue to expand the Company’s position as a supplier to the communications and power industries. Research is conducted on a
continuous basis using internal experience in conjunction with outside professional expertise to develop state-of-the-art materials for
several of the Company’s products. These products capitalize on cost-efficiency while offering exacting mechanical performance that
meets or exceeds industry standards. The Company’s research and development activities have resulted in numerous patents being
issued to the Company (see “Patents and Trademarks” below).

Early in its history, the Company recognized the need to understand the performance of its products and the needs of its customers.
To that end, the Company developed a 38,000 square foot Research and Engineering Center located at its corporate headquarters in
Mayfield Village, Ohio. Using the Research and Engineering Center, engineers and technicians simulate a wide range of external
conditions encountered by the Company’s products to ensure quality, durability and performance. The work performed in the Research
and Engineering Center includes advanced studies and experimentation with various forms of vibration and environmental changes.

The Research and Engineering Center is one of the most sophisticated in the world in its specialized field. The Research and
Engineering Center also has an advanced prototyping technology machine on-site to develop models of new designs where intricate part
details are studied prior to the construction of expensive production tooling. Today, the Company’s reputation for vibration testing,
tensile testing, fiber optic cable testing, environmental testing, field vibration monitoring and third-party contract testing is a competitive
advantage. In addition to testing, the work performed at the Company’s Research and Development Center continues to fuel product
development efforts. For example, the Company estimates that approximately 17.9% of 2021 revenues were attributed to products
developed by the Company in the past five years. In addition, the Company’s position in the industry is further reinforced by its long-
standing leadership role in many key international technical organizations which are charged with the responsibility of establishing
industry-wide specifications and performance criteria, including IEEE (Institute of Electrical and Electronics Engineers), CIGRE
(Counsiel Internationale des Grands Reseaux Electriques a Haute Tension), and IEC (International Electromechanical Commission).
Research and development costs are expensed as incurred. Research and development costs for new products were $3.3 million in 2021,
$2.8 million in 2020 and $3.0 million in 2019.

Patents and Trademarks

The Company applies for patents in the U.S. and other countries, as appropriate, to protect its significant patentable developments.
As of December 31, 2021, the Company had in force 49 U.S. patents and 131 international patents in 21 countries and had 37 pending
U.S. patent applications and 47 pending international applications. While such domestic and international patents expire from time to
time, the Company continues to apply for and obtain patent protection on a regular basis. Patents held by the Company in the aggregate
are of material importance in the operation of the Company’s business. The Company, however, does not believe that any single patent,
or group of related patents, is essential to the Company’s business as a whole or to any of its businesses. Additionally, the Company
owns and uses a substantial body of proprietary information and numerous trademarks. The Company relies on nondisclosure
agreements to protect trade secrets and other proprietary data and technology. As of December 31, 2021, the Company had obtained
U.S. registration on 32 trademarks and 4 trademark application remained pending. International registrations amounted to 240
registrations in 35 countries, with 25 pending international registrations.

U.S. patents are issued for terms of 20 years beginning with the date of filing of the patent application. Patents issued by
international countries generally expire 20 years after filing. U.S. and international patents are not renewable after expiration of their
initial term. U.S. and international trademarks are generally perpetual, renewable in 10-year increments upon a showing of continued
use. To the knowledge of management, the Company is not subject to any significant allegation or charges of infringement of intellectual
property rights by any organization.

In the normal course of business, the Company occasionally makes and receives inquiries with regard to possible patent and
trademark infringement. The extent of such inquiries from third parties has been limited generally to verbal remarks or letters to
Company representatives. The Company believes that it is unlikely that the outcome of these inquiries will have a material adverse
effect on the Company’s financial position.

6
Competition
All of the markets that the Company serves are highly competitive. In each market, the principal methods of competition are
price, performance, and service. The Company believes, however, that several factors (described below) provide the Company with a
competitive advantage.
 The Company has a strong and stable workforce. This consistent and continuous knowledge base has afforded the Company
the ability to provide superior service to the Company’s customers and representatives.
 The Company’s Research and Engineering Center in Mayfield Village, Ohio and the engineering departments at the
Company’s subsidiary operations around the world maintain a strong technical support function to develop unique solutions
to customer problems.
 The Company is vertically integrated both in manufacturing and distribution and is continually upgrading equipment and
processes.
 The Company is sensitive to the marketplace and provides an extra measure of service in cases of emergency, storm damage
and other supply delivery situations. This high level of customer service and customer responsiveness is a hallmark of the
Company.
 The Company’s 30 sales and manufacturing locations ensure close support and proximity to customers worldwide.

Domestically, there are several competitors for formed wire products. Although it has other competitors in many of the countries
where it has plants, the Company has leveraged its expertise and is very strong in the global market. The Company believes that it is
the world’s largest manufacturer of formed wire products for energy and communications markets. However, the Company’s formed
wire products compete against other pole line hardware products manufactured by other companies.

The fiber optic closure market is one of the most competitive product areas for the Company, with the Company competing
against, among others, CommScope and Corning. There are a number of primary competitors and several smaller niche competitors
that compete at all levels in the marketplace. The Company believes that it is one of four leading suppliers of fiber optic closures.

Sources and Availability of Raw Materials

The principal raw materials used by the Company are galvanized wire, stainless steel, aluminum covered steel wire, aluminum
rod, plastic resins, glass-filled plastic compounds, neoprene rubbers and aluminum castings. The Company also uses certain other
materials such as fasteners, packaging materials and fiber communications devices. The Company believes that it has adequate sources
of supply for the raw materials used in its manufacturing processes and it regularly attempts to develop and maintain sources of supply
in order to extend availability and encourage competitive pricing of these products.

Most plastic resins are purchased under contracts to stabilize costs and improve delivery performance and are available from a
number of reliable suppliers. Wire and aluminum rods are purchased in standard stock diameters and coils under contracts from a number
of reliable suppliers. Contracts have firm prices except for fluctuations of base metals and petroleum prices, which result in surcharges
when global demand is greater than the available supply.

The Company also relies on certain other manufacturers to supply products that complement the Company’s product lines, such
as ferrous castings, fiber optic cable and connectors and various metal racks. The Company believes there are multiple sources of supply
for these products.

The Company relies on sole source manufacturers for certain raw materials used in production. The current state of economic
uncertainty presents a risk that existing suppliers could go out of business or be unable to meet customer demand. However, there are
other potential sources available for these materials, and the Company believes that it could relocate the tooling and processes to other
manufacturers if necessary.

Raw material costs increased throughout 2021, partially as a result of supply chain constraints. The Company expects prices on
metals and plastics to continue to increase throughout 2022. Throughout 2021, the Company experienced significant raw material and
transportation cost inflation that negatively affected its earnings. To offset these increased costs, the Company implemented several
price increases in the U.S. and internationally in 2021. Due to the large volume in the Company's backlog, tailwinds from these increases
are expected in 2022, however, continued cost inflation in these areas may require further price adjustments in future periods to maintain
profit margin. Any price increases could have a negative effect on demand.

7
Backlog Orders
The Company’s order backlog is incredibly strong and was approximately $242.9 million at the end of 2021 and $115.1 million
at the end of 2020. All customer orders entered are firm at the time of entry. Substantially all of the backlog existing at December 31,
2021 is expected to be shipped to customers in 2022.

Seasonality
The Company markets products that are used by utility maintenance and construction crews worldwide. The products are
marketed through distributors and directly to end users, who maintain stock to ensure adequate supply for their customers or construction
crews. As a result, the Company does not have a wide variation in sales from quarter to quarter.

Environmental, Social and Governance Matters

The Company is subject to extensive and changing federal, state, and local environmental laws, including laws and regulations
that (i) relate to air and water quality, (ii) impose limitations on the discharge of pollutants into the environment, (iii) establish standards
for the treatment, storage and disposal of toxic and hazardous waste, and (iv) require proper storage, handling, packaging, labeling, and
transporting of products and components classified as hazardous materials. Stringent fines and penalties may be imposed for
noncompliance with these environmental laws. In addition, environmental laws could impose liability for costs associated with
investigating and remediating contamination at the Company’s facilities or at third-party facilities at which the Company has arranged
for the disposal treatment of hazardous materials.

The Company believes it is in compliance in all material respects, with all applicable environmental laws and the Company is not
aware of any noncompliance or obligation to investigate or remediate contamination that could reasonably be expected to result in a
material liability. The Company does not expect to make any material capital expenditures during 2022 for environmental control
facilities. The environmental laws continue to be amended and revised to impose stricter obligations, and compliance with future
additional environmental requirements could necessitate capital outlays. However, the Company does not believe that these
expenditures will ultimately result in a material adverse effect on its financial position or results of operations. The Company cannot
predict the precise effect such future requirements, if enacted, would have on the Company. The Company believes that such regulations
would be enacted over time and would affect the industry as a whole.

Climate change may impact the Company’s business by increasing operating costs due to damage to its facilities and distribution
systems and disruptions to its manufacturing processes due to the increased frequency and severity of storms, floods, fires, fog, mist,
freezing conditions, sea-level rise and other climate-related events. As discussed above, climate change-related regulatory activity and
developments may adversely affect the Company’s business and financial results by requiring the Company to reduce its emissions,
make capital investments to modernize certain aspects of its operations, purchase carbon offsets, or otherwise pay for its emissions. The
Company seeks to address these potential risks in its business continuity planning; however, such events could make it difficult for the
Company to deliver products and services to its customers and cause it to incur substantial expense.

The Company is committed to supporting environmental, social and governance ("ESG") initiatives and to its efforts to being a
responsible and sustainable contributor to the environment, its employees, and the communities in which it operates. The Company is
committed to reducing harmful air emissions, improving gas, electric and water usage efficiency while implementing alternative energy
sources. The Company’s locations are also focused on efforts to reduce its waste, water and energy consumption through the
implementation of such programs as pollution prevention, recycling waste materials in both manufacturing and office facilities, reducing
solid waste disposal, reducing harmful air emissions, and implementing alternative energy sources. An example of this commitment is
through solar power installations at some of the Company’s locations around the globe which are currently generating 1.4 megawatts of
power. The Company has also installed more efficient LED lighting at many of its operations to further reduce energy usage. Some
locations have also achieved the ISO-14001: Environmental Management Systems Certification. The Company has adopted several
policies, including the Code of Conduct, which stresses the importance of adhering to the laws and contributing to society.

In addition to monitoring and managing compliance with environmental regulations, the Company is also committed to
sustainability and environmental protection initiatives. For example, the Company is committed to protecting wildlife by working with
utility companies to design and manufacture wildlife protection products that aid in reducing wildlife mortalities from interaction with
electric power distribution lines, structures, and equipment. Its Wildlife Protection line of products includes the BIRD-FLIGHT™
Diverter, RAPTOR PROTECTOR™ Platform and a Squirrel Deterrent System. The Company is also committed to partnering with its
customers to develop innovative products, technologies, and services that meet their needs while mitigating risk to the environment and
natural resources.

8
 Additionally, the Company's product offerings further enhance global climate sustainability by bolstering grid reliability and
efficiency, strengthening resilience to climate events, enabling transitions to renewable energy and upgrading aging infrastructure. The
Company also quickly provides repair products to customers in the event of emergencies or natural disasters such as hurricanes,
tornadoes, earthquakes, floods or ice storms.

The Company has always supported numerous charitable organizations and promotes community involvement. It makes
donations to various organizations and encourages employees to do the same by offering matching donations. The Company shares its
successes with the communities in which it operates at both a corporate and local level. Donations and investments in enhancing the
lives of the people within the communities it impacts are an integral part of who the Company is and how it intends to represent its
values.

Human Capital
At December 31, 2021, the Company had 2,927 employees, the overwhelming majority of which are full-time employees.
Approximately 28% of the Company’s employees are located in the U.S.

The Company views its employees and culture as keys to its success and believes that its employees are its greatest asset. The
Company aims to attract and retain employees who will be empowered to have the freedom to make decisions and take actions in the
best interest of the Company, while being recognized and accountable for those decisions and actions. The Company focuses on
innovation, inclusion and diversity, safety and engagement to develop the best talent.

The Company’s goal is to create a work environment that enables employees to perform in an environment where they feel
respected and valued. As a global company with employees in over 20 countries, the Company values its broad diversity of cultures,
ethnicities, races, languages, religions, sexual and gender orientations and is committed to cultivating a diverse, open and inclusive work
environment. Workplace satisfaction is a key to attracting and retaining employees. The Company has built a culture where integrity
and honesty guide the decision-making process, while promoting a culture of learning and talent development through tuition
reimbursement, training, wellness programs, flexible benefits, and competitive compensation.

The Company has always had safety as a core value and promotes a health and safety culture that engages and empowers its
employees to take responsibility for the health and safety of themselves and their co-workers. Further, throughout the COVID-19
pandemic, the Company has been successful with proactive measures to protect the health and safety of its employees and to maintain
business continuity. The Company has established several safety protocols in its production and office areas, including, but not limited
to, schedule rotations, face coverings, barriers, physical distance requirements, enhanced cleaning procedures, body temperature
monitoring, vaccination clinics and employer-sponsored COVID-19 testing. The Company continues to assess all challenges related to
COVID-19 and regularly updates its employees.

For more information on the risks related to the Company’s human capital resources, see Item 1A – Risk Factors.

Available Information
The Company maintains an Internet site at http://www.preformed.com, on which the Company makes available, free of charge,
the annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, as
soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the SEC. The Company’s
SEC reports can be accessed through the investor relations section of its Internet site. The information found on the Company’s Internet
site is not part of this or any other report that is filed or furnished to the SEC.

The public may read and copy any materials the Company files with or furnishes to the SEC at the SEC’s Public Reference Room
at 100 F. Street, NE., Washington, DC 20549. Information on the operation of the Public Reference Room is available by calling the
SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet site that contains reports, proxy and information statements, and
other information filed with the SEC by electronic filers. The SEC’s Internet site is http://www.sec.gov. The Company also has a link
from its Internet site to the SEC’s Internet site. This link can be found on the investor relations page of the Company’s Internet site.

9
Item 1A. Risk Factors
The Company’s business, operating results, financial condition and cash flows may be affected by a number of factors including,
but not limited to those discussed below. Any of these factors could cause the Company’s actual results to vary material from recent
results of future anticipated results.

Industry and Economic Risks

Due to the Company’s dependency on the energy and telecommunication industries, the Company is susceptible to negative trends
relating to those industries that could adversely affect the Company’s operating results.
The Company’s sales to the energy and telecommunication industries represent a substantial portion of the Company’s historical
sales. The concentration of revenue in such industries is expected to continue into the foreseeable future. Demand for products to these
industries depends primarily on capital spending by customers for constructing, rebuilding, maintaining or upgrading their systems. The
amount of capital spending and, therefore, the Company’s sales and profitability are affected by a variety of factors, including general
economic conditions, access by customers to financing, government regulation, demand for energy and cable services, energy prices
and technological factors. As a result, some customers may significantly reduce or delay their spending or may not continue as going
concerns, which could have a material adverse effect on the Company’s business, operating results and financial condition. In addition,
the Company may incur exit-related costs and impairments of goodwill, definite and indefinite-lived intangible assets and property,
fixtures and equipment as the Company makes corresponding changes to its business to reflect these changes and uncertainties in the
Company’s industries and customer demand, and these costs and impairments could have a significant negative impact on the
Company’s operating results for the period in which they are incurred. Consolidation presents an additional risk to the Company in that
merged customers will rely on relationships with a source other than the Company. Consolidation may also increase the pressure on
suppliers, such as the Company, to sell product at lower prices.

The intense competition in the Company’s markets, particularly telecommunication, may lead to a reduction in sales and earnings.
The markets in which the Company operates are highly competitive. The level of intensity of competition may increase in the
foreseeable future due to anticipated growth in the telecommunication and data communication industries. The Company’s competitors
in the telecommunication and data communication markets are larger companies with significant influence over the distribution network.
The Company may not be able to compete successfully against its competitors, many of which may have access to greater financial
resources than the Company. In addition, the pace of technological development in the telecommunication market is rapid and these
advances (i.e., wireless, fiber optic network infrastructure, etc.) may adversely affect the Company’s ability to compete in this market.

Competitors’ introduction of products embodying new technologies or the emergence of new industry standards can render existing
products or products under development obsolete or unmarketable and result in lost sales.
The energy and telecommunication industries are characterized by rapid technological change. Satellite, wireless and other
communication technologies currently being deployed may represent a threat to copper, coaxial and fiber optic-based systems by
reducing the need for wire-line networks. Future advances or further development of these or other new technologies may have a
material adverse effect on the Company’s business, operating results and financial condition as a result of lost sales.

Price increases or decreased or delayed availability of raw materials could result in lower earnings.
The Company’s cost of sales may be materially adversely affected by increases in the market prices of the raw materials used in
the Company’s manufacturing processes. During 2021, the Company implemented several price increases in the U.S. and internationally
to mitigate rising material costs. This may have impacted or could continue to impact the Company's demand for its products. The
Company may not be able to pass on further price increases in raw materials to the Company’s customers through increases in product
prices. As a result, the Company’s operating results could be adversely affected. In addition, any decrease or delay in the availability
of these materials or interruptions generally in the global supply chain could slow production and delivery to the Company’s customers.
The impact of the COVID-19 pandemic and recent inflation, which is expected to continue, has disrupted and may continue to disrupt
the global supply chain and could have a material, adverse effect on the ability to secure raw materials and supplies.

The Company’s international operations subject the Company to additional business risks that may have a material adverse effect
on the Company’s business, operating results and financial condition.
International sales account for a substantial portion of the Company’s net sales (50%, 57% and 60% in 2021, 2020 and 2019,
respectively). Due to its international sales, the Company is subject to the risks of conducting business internationally, including
unexpected changes in, or impositions of, legislative or regulatory requirements, which could materially adversely affect U.S. dollar
sales or operating expenses, tariffs and other barriers and restrictions, potentially longer payment cycles, greater difficulty in accounts

10
receivable collection, reduced or limited protection of intellectual property rights, potentially adverse taxes and the burdens of complying
with a variety of international laws and communications standards. The Company is subject to foreign currency volatility, which could
materially impact the Company’s operating results, including the impact of hyper-inflationary conditions in certain economies,
particularly where exchange controls limit or eliminate the Company’s ability to convert from local currency. The Company is also
subject to general geopolitical risks, such as political and economic instability, social unrest, acts of war, military conflict, international
hostilities or the perception that hostilities may be imminent, terrorism and changes in diplomatic and trade relationships, including any
retaliatory measures, sanctions or tariffs imposed in response to any acts of war or military conflicts in connection with its international
operations. Any such disruption could cause delays in the production and distribution of the Company’s products and the loss of sales
and customers. Moreover, these types of events could negatively impact consumer spending or the economy in the impacted regions or
depending upon the severity, globally. These risks of conducting business internationally may have a material adverse effect on the
Company’s business, operating results and financial condition.

Additionally, in 2016, the United Kingdom held a referendum in which voters approved an exit from the European Union
(“Brexit”). Continued uncertainty relating to Brexit could adversely impact the Company. The United Kingdom formally exited the
European Union on January 31, 2020 and had a transition period that ended on December 31, 2020. Since January 1, 2021, the European
Union – United Kingdom Trade and Cooperative Agreement has provisionally been in effect and entered into force on May 21, 2021.
Due to the lack of comparable precedent, the ultimate effect of Brexit and the trade and cooperative agreement are difficult to predict
and could continue to have a further adverse impact on global economic conditions, the stability of global financial markets and global
market liquidity, including effects on the discontinuation, reform or replacement of LIBOR as a reference interest rate included under
the Company’s credit facility. Any of these factors could depress economic activity or lead to long-term volatility in the currency markets
which could adversely impact the Company’s business, financial condition and results of operations.

The Company's financial results could be adversely affected by the change in interest rates.
Any period of interest rate increases may adversely affect the Company’s profitability. As of December 31, 2021, 38% of the
Company's indebtedness bears interest at rates that float with the market. A higher level of floating rate debt would increase the exposure
to changes in interest rates. Additionally, the interest rates on some of the Company’s debt is tied to LIBOR. The use of LIBOR is
expected to be phased out by June 2023. The uncertainty regarding the transition from LIBOR to another reference rate or rates could
have adverse impacts on the Company’s available debt that currently uses LIBOR as a reference rate, and ultimately, adversely affect
our financial condition and results of operations.

The COVID-19 pandemic may continue to have a material adverse effect on the Company’s business, operating results and financial
condition.
The Company is subject to public health concerns, including viral outbreaks such as the COVID-19 pandemic. Worldwide
economic conditions have been significantly impacted by COVID-19 and the effects could continue to have an adverse effect on the
Company’s operations and businesses as government authorities could continue to impose mandatory closures, work-from-home orders
and social distancing protocols along with other unknown potential restrictions. COVID-19 has disrupted and could continue to disrupt
the global supply chain, which could have a material, adverse effect on the Company’s ability to secure raw materials and supplies and
could result in increased costs and the loss of sales and customers. The impact of COVID-19 could potentially exacerbate all the risks
discussed and lead to the creation of new risks, any of which could have a material adverse effect on the Company’s business, operating
results and financial condition. The duration and scope of the COVID-19 pandemic cannot be predicted, and therefore, any anticipated
negative financial impact to the Company’s operating results cannot be reasonably estimated.

Business and Operations Risks

The Company’s business will suffer if the Company fails to develop and successfully introduce new and enhanced products that meet
the changing needs of the Company’s customers.
The Company’s ability to anticipate changes in technology and industry standards and to successfully develop and introduce new
products on a timely basis is a significant factor in the Company’s ability to grow and remain competitive. New product development
often requires long-term forecasting of market trends, development and implementation of new designs and processes and a substantial
capital commitment. The trend toward consolidation of the energy, telecommunication and data communication industries may require
the Company to quickly adapt to rapidly changing market conditions and customer requirements. Any failure by the Company to
anticipate or respond in a cost-effective and timely manner to technological developments or changes in industry standards or customer
requirements, or any significant delays in product development or introduction or any failure of new products to be widely accepted by
the Company’s customers, could have a material adverse effect on the Company’s business, operating results and financial condition as
a result of reduced net sales.

11
The Company may not be able to successfully integrate businesses that it may acquire in the future or complete acquisitions on
satisfactory terms, which could have a material adverse effect on the Company’s business, operating results and financial condition.
A portion of the Company’s growth in sales and earnings has been generated from acquisitions. The Company expects to continue
a strategy of identifying and acquiring businesses with complementary products. In connection with this growth strategy, the Company
faces certain risks and uncertainties in addition to the risks faced in the Company’s day-to-day operations, including the risks pertaining
to integrating acquired businesses, realizing the benefits of acquired technology, utilizing new personnel and operating in new
jurisdictions. In addition, the Company may incur debt to finance future acquisitions, and the Company may issue securities in
connection with future acquisitions that may dilute the holdings of current and future shareholders. Covenant restrictions relating to
additional indebtedness could restrict the Company’s ability to pay dividends, fund capital expenditures, consummate additional
acquisitions and significantly increase the Company’s interest expense. Any failure to successfully complete acquisitions or to
successfully integrate such strategic acquisitions could have a material adverse effect on the Company’s business, operating results and
financial condition.

The Company may have interruptions in or lose business due to the uncertainty of the global economy, specifically related to the
lack of available funding for the Company’s customers.
The demand for the Company’s products is significantly affected by the amount of discretionary business and consumer spending,
each of which is impacted by the continued uncertainty of the global economy. The Company’s operations could be adversely affected
by global economic conditions such as recession, political or social unrest, economic instability, acts of war, military conflict,
international hostilities or the perception that hostilities may be imminent, terrorism and changes in diplomatic and trade relationships,
including any retaliatory measures, sanctions or tariffs imposed in response to any acts of war or military conflicts, public health concerns
or otherwise. The liquidity and financial position of the Company’s customers could also impact their ability to pay in full and/or on a
timely basis. This lack of funding could have a negative impact on the Company’s operating results and financial condition.

The Company employs information technology systems to support its business, and any material breach, interruption or failure may
adversely impact the Company’s business.
The Company employs information technology systems to support its business. Security breaches and other disruptions to the
Company’s information technology infrastructure could interfere with the Company’s operations, and compromise information
belonging to the Company and its customers, suppliers and employees, exposing the Company to liability which could adversely impact
the Company’s business and reputation. In the ordinary course of business, the Company relies on information technology networks and
systems, some of which are managed by third parties, to process, transmit and store electronic information, and to manage or support a
variety of business processes and activities. Additionally, the Company collects and stores certain data, including proprietary business
information, and may have access to confidential or personal information in certain of its businesses that is subject to privacy and
security laws, regulations and customer-imposed controls. Despite the Company’s cybersecurity measures and oversight of such matters
by the Board of Directors, which are continuously reviewed and upgraded, the Company’s information technology networks and
infrastructure and protected data may still be vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches,
employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems failures, service
providers including cloud services, natural disasters or other catastrophic events. It is possible for such vulnerabilities to remain
undetected for an extended period, up to and including several years. Any such events could result in legal claims or proceedings,
liability or penalties under privacy laws, disruption in operations, and damage to the Company’s reputation, which could adversely affect
the Company’s business.

Legal, Tax and Regulatory Risks

The Company may be adversely impacted by laws, regulation, and litigation.
The Company is subject to various laws and regulation. For example, extensive environmental regulations related to air and water
quality, the discharge of pollutants, climate change, the handling of toxic waste and the handling and transport of products and
components classified as hazardous impact its daily operations. The introduction of new laws or regulations, or changes in existing laws
or regulations, could increase the costs of doing business. It is difficult to predict what impact, if any, changes in federal policy, including
environmental and tax policies will have on our industry, the economy as a whole, consumer confidence and spending. As a result, the
nature, timing and impact on our business of potential changes to the current legal and regulatory frameworks are uncertain. At any
given time, the Company may also be subject to litigation or claims related to its products, suppliers, customers, employees, shareholders,
distributors, sales representatives, intellectual property or acquisitions, among other things, the disposition of which may have an adverse
effect upon the Company’s business, financial condition, or results of operation. The outcome of litigation is difficult to assess or
quantify. Lawsuits can result in the payment of substantial damages by defendants. If the Company is required to pay substantial damages
and expenses as a result of these or other types of lawsuits, the Company’s business and results of operations would be adversely
affected. Regardless of whether any claims against the Company are valid or whether it is liable, claims may be expensive to defend,

12
may cause reputational harm (particularly where any claims relate to significant harm to persons and property) and may divert time and
money away from the Company’s operations. Insurance may not be available at all or in sufficient amounts to cover any liabilities with
respect to these or other matters. A judgment or other liability in excess of the Company’s insurance coverage or financial statement
accruals for any claims could adversely affect the Company’s business and operating results.

The Company may not be able to successfully manage its intellectual property and may be subject to infringement claims.
The Company relies on a combination of contractual rights and patent, trademark, copyright and trade secret laws to establish and
protect its proprietary technology. Third parties may challenge, invalidate, circumvent, infringe or misappropriate the Company’s
intellectual property, or such intellectual property may not be sufficient to permit the Company to take advantage of current market
trends or otherwise to provide competitive advantages, which could result in costly redesign efforts, discontinuance of certain product
offerings or other competitive harm. Others, including its competitors may independently develop similar technology, duplicate or
design around the Company’s intellectual property, and in such cases, it could not assert its intellectual property rights against such
parties. The Company may also be subject to costly litigation in the event its technology infringes upon or otherwise violate a third
party’s proprietary rights. Any claim from third parties may result in a limitation on its ability to use the intellectual property subject to
these claims or the requirement to pay a licensing fee or royalty. The Company may be forced to litigate to enforce or determine the
scope and enforceability of its intellectual property rights, trade secrets and know-how, which is expensive, could cause a diversion of
resources and may not prove successful, especially in countries where such rights are more difficult to enforce. The loss of intellectual
property protection or the inability to obtain third party intellectual property could harm its business and ability to compete.

Tax matters, including changes in tax rates, disagreements with taxing authorities and imposition of new taxes could impact the
Company’s operating results and financial condition.
The Company is subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Tax laws, regulations,
and administrative practices in various jurisdictions may be subject to significant change, with or without notice, due to economic,
political, and other conditions, and significant judgment is required in evaluating and estimating the provision and accruals for these
taxes. There are many transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain.
The Company’s effective tax rates could be affected by numerous factors, including but not limited to, intercompany transactions, the
relative amount of its foreign earnings, including earnings being lower than anticipated in jurisdictions where the Company has lower
statutory rates and higher than anticipated in jurisdictions where the Company has higher statutory rates, losses incurred in jurisdictions
for which the Company is not able to realize the related tax benefit, changes in foreign currency exchange rates, changes in its deferred
tax assets and liabilities and any related valuation, and changes in the relevant tax, accounting, and other laws, regulations, administrative
practices, principles, and interpretations. In addition, many countries are actively pursuing changes to their tax laws applicable to
corporate multinationals such as the proposed U.S. Build Back Better Plan, which potentially could raise the U.S. corporate tax rate.
Additionally, due to the COVID-19 pandemic, foreign governments facilitated economic stimulus by enacting new tax legislation
throughout 2021. Foreign governments will continue to contemplate future changes to tax law to assist in economic recovery. These
future changes could materially affect the Company’s financial position and results of operations.

Risk Factors Related to Human Capital

The Company depends on maintaining a skilled workforce and any interruption in the workforce could negatively impact the
Company’s operating results and financial condition.
The Company’s ability to sustain and grow its business requires a commitment to hire, retain and develop a highly skilled and
diverse management team and workforce. Failure to ensure that the Company has the depth and breadth of personnel with the necessary
skill set and experience, the loss of key employees or interruptions in the Company's workforce, including unionization efforts and
changes in labor relations, could impede the Company’s ability to deliver its growth objectives and execute its strategy. Additionally,
the health of the Company's employees is critical and protection of its employees is the Company's top priority.

The Company continues to develop and invest in human capital through continuing education, work-related certifications, and
talent and performance management systems. These efforts directly impact the ability to deliver its growth objectives and execute its
strategy.

Item 1B. Unresolved Staff Comments

The Company does not have any unresolved staff comments.

13
Item 2. Properties
The Company currently owns or leases 40 facilities, which together contain approximately 2.6 million square feet of
manufacturing, warehouse, research and development, sales and office space worldwide. Most of the Company’s international facilities
contain space for offices, research and engineering (R&E), warehousing and manufacturing with manufacturing using a majority of the
space. The following table provides information regarding the Company’s principal facilities:

Total Approximate
Type of Facilities Square Feet
Segment Location Manufacturing Warehouse R&E Office Owned Leased
United States United States 2 2 1 3 704,900

Americas Brazil 1 1 1 1 167,600

Argentina 1 1 1 26,400
Canada 2 2 1 2 124,400
Mexico 1 1 2 113,000 1,100

Asia-Pac Australia 1 1 1 4 122,900 79,200

China 1 1 1 1 132,100
Indonesia 2 1 2 197,900
Malaysia 1 1 18,600
Thailand 1 3 1 80,000 49,500
New Zealand 1 2 1 2 34,200 6,200

EMEA Great Britain 1 1 1 1 90,400

Austria 1 1 14,100
Czech Republic 2 1 1 1 66,700
South Africa 1 1 1 1 68,800
Spain 1 1 1 1 63,300 10,800
Poland 1 1 1 1 175,000

Item 3. Legal Proceedings

Information regarding the Company’s current legal proceedings is presented in Note B of the Notes to the Consolidated Financial
Statements.

Item 4. Mine Safety Disclosures

Not applicable

Item 4A. Information about our Executive Officers

Each executive officer is elected by the Board of Directors, serves at its pleasure and holds office until a successor is appointed,
or until the earliest of death, resignation or removal.

Name Age Position

Robert G. Ruhlman 65 Chairman, President and Chief Executive Officer
William H. Haag 58 Vice President - Asia-Pacific Region
John M. Hofstetter 57 Executive Vice President - U.S. Operations
Andrew S. Klaus 56 Chief Financial Officer
Dennis F. McKenna 55 Chief Operating Officer
John J. Olenik 51 Vice President - Research and Engineering
Tim O'Shaughnessy 51 Vice President - Human Resources
J. Ryan Ruhlman 38 Vice President - Marketing and Business Development
Caroline S. Vaccariello 55 General Counsel and Corporate Secretary

14
 The following sets forth the name and recent business experience for each person who is an executive officer of the Company at
March 4, 2022:

Robert G. Ruhlman was elected Chairman in July 2004. Mr. Ruhlman has served as Chief Executive Officer since July 2000 and
as President since 1995 (positions he continues to hold). Mr. Ruhlman is the father of J. Ryan Ruhlman, Vice-President – Marketing
and Business Development and a Director of the Company, and of Maegan A. R. Cross, also a Director of the Company.

William H. Haag was elected Vice President - Asia-Pacific Region in January 2018. Prior to that, Mr. Haag served as the
Company’s Vice President - International Operations since April 1999.

John M. Hofstetter was elected Executive Vice President - U.S. Operations in October 2020. Prior to that, Mr. Hofstetter served
as Vice President – Sales and Global Communications Markets and Business Development in April 2012.

Andrew S. Klaus was elected Chief Financial Officer in April 2020. Previous to his employment with the Company, Mr. Klaus
served as the Chief Accounting Officer and VP Corporate Controller at Vertiv Holdings Co. since 2017. Mr. Klaus served as the Chief
Financial Officer of Consolidated Precisions Products Corporation from 2013 to 2017 and Vice President, Corporate Controller for JMC
Steel Group (now known as Zekelman Industries, Inc.) from 2007 to 2013.

Dennis F. McKenna was elected Chief Operating Officer in January 2019. Prior to that, Mr. McKenna served as Executive Vice
President Global Business Development since January 2015 where he expanded his role to include worldwide marketing and business
development strategies. Prior to that, he was elected Vice President - Marketing and Global Business Development in April 2004.

John J. Olenik was elected Vice President - Research and Engineering in January 2020. Prior to that, Mr. Olenik was the
Company’s Director of Engineering since 2013 where he was promoted from his prior role as Engineering Manager of Power Product
Development. Mr. Olenik has been with the Company since 1997.

Tim O’Shaughnessy was elected Vice President - Human Resources in January 2019. Prior to that, Mr. O’Shaughnessy served
as the Company’s Director of Human Resources since 2017 where he was promoted from his previous role of International Human
Resource Manager which he began in 2013. Mr. O’Shaughnessy previously held various roles within the Finance organization since
joining the Company in 2005.

J. Ryan Ruhlman was elected to the Company’s Board of Directors in July 2015 and as Vice President - Marketing and Business
Development in December 2015, which expanded his role to include new acquisition and market opportunities. Prior to that, he was
promoted to Director Marketing and Business Development in January 2015 including responsibilities for Special Industries,
Distribution and Transmission Markets, as well as Marketing Communications. Mr. Ruhlman is the son of Robert G. Ruhlman, the
Chief Executive Officer and Chairman of the Company, and the brother of Maegan A. R. Cross, a Director of the Company.

Caroline S. Vaccariello was elected General Counsel and Corporate Secretary in January 2007.

15
 Part II

Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
The Company’s common shares are traded on NASDAQ under the trading symbol “PLPC”. As of March 1, 2022, the Company
had approximately 2,900 shareholders of record. The following table sets forth for the periods indicated (i) the high and low closing
sale prices per share of the Company’s common shares as reported by the NASDAQ and (ii) the amount per share of cash dividends
paid by the Company.

Year ended December 31

2021 2020
Quarter High Low Dividend High Low Dividend
First 79.00 64.29 $ 0.20 $ 60.76 $ 36.41 $ 0.20
Second 81.30 65.45 0.20 55.00 38.43 0.20
Third 75.76 64.50 0.20 60.45 47.25 0.20
Fourth 71.47 57.15 0.20 67.59 48.77 0.20

While the Company expects to continue to pay dividends of a comparable amount in the near term, the declaration and payment
of future dividends will be made at the discretion of the Company’s Board of Directors in light of the current needs of the Company.
Therefore, there can be no assurance that the Company will continue to make such dividend payments in the future.

There were no equity compensation plans not approved by security holders during the year ended December 31, 2021. The
approved transactions for the year ended December 31, 2021 are as follows.

(a) (b) (c)

Number of Number of securities
securities to be remaining available
issued upon Weighted-average for future issuance
exercise of exercise price of under equity
outstanding outstanding compensation plans
options, warrants options, warrants (excluding securities
and rights and rights reflected in column a)
Plan Category (1) (1) (2)
Equity compensation plans approved by security
holders 239,504 $ 56.84 612,717

(1) Of these shares, 192,554 were issued in the form of restricted stock units, which have no exercise price. Accordingly, such shares
were not included in the weighted average exercise price. For further detail, refer to Note H, “Share-Based Compensation.”
(2) The Company’s Long-Term Incentive Plan of 2008 was replaced in May 2016 by the 2016 Incentive Plan. Up to 900,000 of the
1,000,000 shares initially authorized may be issued in the form of restricted shares or units under the new plan. See Note H in the
Notes to Consolidated Financial Statements for information relating to the Company’s 2016 Incentive Plan.

16
Performance Graph
Set forth below is a line graph comparing the cumulative total return of a hypothetical investment in the Company’s common
shares with the cumulative total return of hypothetical investments in the NASDAQ Composite Index and the Peer Group Index based
on the respective market price of each investment at December 31, 2016, December 31, 2017, December 31, 2018, December 31, 2019,
December 31, 2020, and December 31, 2021, assuming in each case an initial investment of $100 on December 31, 2016, and
reinvestment of dividends.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*

Among Preformed Line Products, the NASDAQ Composite Index,
and Hemscott Industry Group 627 (Industrial Electrical Equipment)

$350

$300

$250

$200

$150

$100

$50

$0
12/16 12/17 12/18 12/19 12/20 12/21

Preformed Line Products

NASDAQ Composite
Hemscott Industry Group 627 (Industrial Electrical Equipment)

*$100 invested on 12/31/16 in stock or index, including reinvestment of dividends.

Fiscal year ending December 31.

2016 2017 2018 2019 2020 2021

PREFORMED LINE PRODUCTS CO 100.00 123.98 95.79 108.08 124.43 119.02
NASDAQ MARKET INDEX 100.00 129.64 125.96 172.17 249.51 304.85
PEER GROUP INDEX 100.00 116.69 92.92 123.45 166.33 188.14

Purchases of Equity Securities

On July 28, 2021, the Board of Directors authorized a plan to repurchase up to an additional 191,163 of Preformed Line Products
Company common shares, resulting in a total of 250,000 shares available for repurchase with no expiration date. There were no
repurchases under this plan for the three months ended December 31, 2021. There were 242,930 shares remaining to be purchased as
of December 31, 2021.

Item 6. Selected Financial Data

[Reserved]

17
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the
readers of our financial statements better understand our results of operations, financial condition and present business environment.
The MD&A is provided as a supplement to, and should be read in conjunction with, our audited consolidated financial statements and
related notes included elsewhere in this report.

The MD&A is organized as follows:

 Overview
 Market Overview
 Preface
 Results of Operations
 Working Capital, Liquidity and Capital Resources
 Critical Accounting Policies and Estimates
 Recently Adopted Accounting Pronouncements
 New Accounting Standards to be Adopted

OVERVIEW
Preformed Line Products Company (the “Company”, “PLPC”, “we”, “us”, or “our”) was incorporated in Ohio in 1947. We are
an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and
underground networks for the energy, telecommunication, cable operators, information (data communication), and other similar
industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We also provide solar hardware
systems, mounting hardware for a variety of solar power applications, and fiber optic and copper splice closures. PLPC is respected
around the world for quality, dependability and market-leading customer service. Our goal is to continue to achieve profitable growth
as a leader in the research, innovation, development, manufacture, and marketing of technically advanced products and services related
to energy, communications and cable systems and to take advantage of this leadership position to sell additional quality products in
familiar markets. We have 30 sales and manufacturing operations in 22 different countries.

We report our segments in four geographic regions: PLP-USA (including corporate), The Americas (includes operations in North
and South America, excluding PLP-USA), EMEA (Europe, Middle East & Africa) and Asia-Pacific, in accordance with accounting
standards codified in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280, “Segment
Reporting”. Each segment distributes a full range of our primary products. Our PLP-USA segment is comprised of our U.S. operations
manufacturing our traditional products primarily supporting our domestic energy, telecommunications and solar products. Our other
three segments, The Americas, EMEA and Asia-Pacific, support our energy, telecommunications, data communication and solar
products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief
operating decision maker, and are accountable for the financial results and performance of their entire segment for which they are
responsible. The business components within each segment are managed to maximize the results of the entire operating segment and
the Company rather than the results of any individual business component of the segment.

We evaluate segment performance and allocate resources based on several factors primarily based on sales and net income.

MARKET OVERVIEW
Our business continues to be concentrated in the energy and communications markets. During the past several years, industry
consolidation continued as distributor and service provider integrations occurred in our major markets. There has also been a historical
lack of commitment by developed countries to upgrade and strengthen their electrical grids and communication networks despite the
growing need. More recently, increasing commodity prices, transportation costs, and foreign currency fluctuations coupled with the
varying degrees of recovery from the COVID-19 pandemic throughout the global economy has led to a challenging operating
environment. While these factors are likely to continue to provide inherent uncertainty going forward, the COVID-19 pandemic and
other large scale environmental events have placed a renewed focus on key infrastructure priorities around the world, including
bolstering grid reliability, strengthening grid resilience to climate events, upgrading aging infrastructure, enhancing communication
networks and transitioning to renewable energy. Our focused portfolio is well-positioned to respond to these priorities.

18
 In 2021, sales in the energy market continued to remain strong while sales in the communications market increased due to the
number and scale of projects in North America and globally. We believe that our leadership position in these and other markets and the
ability to deliver reliable products quickly will position us for continued growth as transmission grids are enhanced and extended. As
communication networks continue to be upgraded and expanded, our product offering positions us well to participate in the expansion.

Our international business is mostly concentrated in the energy and communications markets, which is where we experienced our
most significant top line growth in 2021. Historically, our international sales were primarily related to the medium voltage distribution
segment of the energy market but have grown through acquisition and new product development to include a significant contribution
from the transmission and telecommunications markets. We expect growth in our communications business from opportunities where
deployment of fixed line and wireless telecommunications services and broadband penetration rates remain low as a percentage of the
total population.

We believe that we are well positioned to supply the needs of the world’s diverse energy and communication markets as a result
of our focused portfolio, strategic operational footprint and product designs and technologies.

PREFACE
The following discussion describes our results of operations for the years ended December 31, 2021 and 2020. Our consolidated
financial statements are prepared in conformity with U.S. generally accepted accounting principles ("GAAP"). Our discussions of the
financial results include non-GAAP measures (e.g., foreign currency impact) to provide additional information concerning our financial
results and provide information that we believe is useful to the readers of our financial statements in the assessment of our performance
and operating trends.

While the ongoing COVID-19 pandemic has not had a material effect on our overall results, it has continued to create challenges
for us in countries that have significant outbreak mitigation strategies, namely, countries in our Asia-Pacific business segment, which
led to temporary project postponements and continued to impact results in this segment. We are continuing to actively monitor the
impact of COVID-19 on current and future periods and actively manage costs and our liquidity position to provide additional flexibility
while still supporting our customers and their specific needs. We cannot predict the duration or scope of the COVID-19 pandemic or
the magnitude of its impact on our business and results of operations. In addition, the impact of COVID-19 could potentially exacerbate
other risks discussed, any of which could have a material adverse effect on the Company. We continue to assess all challenges related
to COVID-19 and plan accordingly.

Overall customer demand remained strong and contributed to record net sales revenue of $517.4 million for the year ended
December 31, 2021. However, we also experienced significant commodity and transportation cost inflation that negatively affected our
earnings. To mitigate the ongoing inflationary pressures, we implemented several price increases in the U.S. and internationally in
2021. Due to the large volume in our order backlog, we expect tailwinds from these increases into 2022, however, continued cost
inflation in these areas may require further price adjustments going forward to maintain profit margin, and any price increases may have
a negative effect on demand.

Our financial statements are subject to fluctuations in the exchange rates of foreign currencies in relation to the U.S. dollar.
Foreign currencies strengthened against the U.S. dollar in 2021 as opposed weakening in 2020. The fluctuations of foreign currencies
during the year ended December 31, 2021 had a favorable impact on net sales of $9.3 million and an unfavorable impact of $16.9 million
during the year ended December 31, 2020. The effect of currency translation had a favorable impact on net income in the year ended
December 31, 2021 of $0.4 million and an unfavorable impact of $1.3 million in the year ended December 31, 2020. On a reportable
segment basis, the impact of foreign currency translation on net sales and net income for the years ended December 31, 2021 and 2020,
respectively, was as follows:

Foreign Currency Translation Impact

Net Sales Net Income (Loss)
(Thousands of dollars) 2021 2020 2021 2020
The Americas $ (893) $ (15,523) $ 59 $ (1,391)
EMEA 5,295 (777) 335 (26)
Asia-Pacific 4,864 (563) 20 73
Total $ 9,266 $ (16,863) $ 414 $ (1,344)

Loss on foreign currency translation on operating income for the year ended December 31, 2021 was $0.7 million. There were
transaction losses of $0.3 million that were combined with losses on forward currency contracts of $0.7 million in the year ended

19
December 31, 2021 and $1.5 million of transaction losses in the year ended December 31, 2020 which were partially mitigated by
forward currency contract gains of $0.4 million as summarized in the following table:

Foreign Currency Translation Impact

Year Ended December 31
(Thousands of dollars) 2021 2020
Operating income $ 47,549 $ 40,207
Translation loss 733 0
Transaction loss 308 1,455
Net loss (gain) on forward currency contracts 690 (415)
Operating income excluding currency impact $ 49,280 $ 41,247

Despite the continued challenges in the global economy, we believe our business portfolio and our financial position are sound
and strategically well-positioned. We remain focused on assessing our global market opportunities and overall manufacturing capacity
in conjunction with the requirements of local manufacturing in the markets that we serve. If necessary, we will utilize our global
manufacturing network to manage costs, while driving sales and delivering value to our customers. We have continued to invest in our
business to expand our market footprint, improve efficiency, develop new products, increase our capacity and become an even stronger
supplier to our current and new customers. Our liquidity remains strong and we currently have a bank debt to equity ratio of 18.8%.
We can borrow needed funds at a competitive interest rate under our credit facility. A consolidated increase in debt of $3.6 million as
of December 31, 2021 was partially a result of current year funding needs for the purchase of a new corporate aircraft to replace the
former aircraft which was substantially offset by decreases in debt levels globally, most notably in variable debt instruments. See Note
E "Debt and Credit Arrangements" in the Notes to Consolidated Financial Statements for more information related to our debt position.

The following table sets forth a summary of the Company’s Statements of Consolidated Income and the percentage of net sales
for the years ended December 31, 2021 and 2020. The Company’s past operating results are not necessarily indicative of future operating
results.

Year Ended December 31

(Thousands of dollars) 2021 2020 Change
Net sales $ 517,417 100.0 % $ 466,449 100.0 % $ 50,968
Cost of products sold 351,175 67.9 312,436 67.0 38,739
GROSS PROFIT 166,242 32.1 154,013 33.0 12,229
Costs and expenses 118,693 22.9 113,806 24.4 4,887
OPERATING INCOME 47,549 9.2 40,207 8.6 7,342
Other income, net 1,347 0.3 364 0.1 983
INCOME BEFORE INCOME TAXES 48,896 9.5 40,571 8.7 8,325
Income taxes 13,175 2.5 10,810 2.3 2,365
NET INCOME 35,721 6.9 29,761 6.4 5,960
Less: Net loss attributable to noncontrolling
interests 8 0.0 42 0.0 (34)
NET INCOME ATTRIBUTABLE TO
PREFORMED LINE PRODUCTS
COMPANY SHAREHOLDERS $ 35,729 6.9 % $ 29,803 6.4 % $ 5,926

2021 RESULTS OF OPERATIONS COMPARED TO 2020

Net sales. In 2021, net sales were $517.4 million, an increase of $51.0 million, or 11%, compared to 2020. Excluding the favorable
effect of currency translation, net sales increased 9% as summarized in the following table:

Year Ended December 31

Change Change
(Thousands of dollars) Due to Excluding
Currency Currency %
2021 2020 Change Translation Translation Change
Net sales
PLP-USA $ 257,602 $ 201,277 $ 56,325 $ 0 $ 56,325 28 %
The Americas 70,732 74,192 (3,460) (893) (2,567) (3)
EMEA 95,922 91,108 4,814 5,295 (481) (1)
Asia-Pacific 93,161 99,872 (6,711) 4,864 (11,575) (12)
Consolidated $ 517,417 $ 466,449 $ 50,968 $ 9,266 $ 41,702 9 %

20
 The increase in PLP-USA net sales of $56.3 million, or 28%, was primarily due to a volume increase in communication and
energy product sales, combined with benefits resulting from price increases in June and October of 2021. International net sales for the
year ended December 31, 2021 were favorably affected by $9.3 million when local currencies were converted to U.S. dollars. The
following discussion of changes in net sales excludes the effect of currency translation. The Americas net sales of $70.7 million
decreased $2.6 million, or 3%, primarily due to decreased volume in energy product sales, partially offset by an in increase in
communication product sales. EMEA net sales of $95.9 million decreased $0.5 million, or 1%, primarily due to volume decreases in
communication products in the region. The Asia-Pacific net sales of $93.2 million decreased $11.6 million, or 12%, compared to 2020
primarily due to the continued volume decreases from the postponement of large-scale projects caused by the ongoing COVID-19
pandemic.

Gross Profit. Gross profit of $166.2 million for 2021 increased $12.2 million, or 8%, compared to 2020. Excluding the favorable
effect of currency translation, gross profit increased $9.2 million, or 6%, as summarized in the following table:

Year Ended December 31

Change Change
(Thousands of dollars) Due to Excluding
Currency Currency %
2021 2020 Change Translation Translation Change
Gross profit
PLP-USA $ 87,740 $ 75,182 $ 12,558 $ 0 $ 12,558 17 %
The Americas 23,312 23,854 (542) (141) (401) (2)
EMEA 30,839 31,019 (180) 1,805 (1,985) (6)
Asia-Pacific 24,351 23,958 393 1,415 (1,022) (4)
Consolidated $ 166,242 $ 154,013 $ 12,229 $ 3,079 $ 9,150 6 %

PLP-USA gross profit of $87.7 million increased by $12.6 million, or 17%, compared to 2020 mostly due to an increase in sales
of $56.3 million and a shift in mix toward higher margin products, most notably in the communications market, partially offset by the
negative impact of rising commodity prices, freight costs, inflation and an increase in warranty costs. Incremental price increases were
enacted in the PLP-USA region in 2021 to further mitigate the ongoing inflation and commodity price increases. International gross
profit for the year ended December 31, 2021 was favorably impacted by $3.1 million when local currencies were translated to U.S.
dollars. The following discussion of gross profit changes excludes the effects of currency translation. The Americas gross profit
decreased $.4 million, or 2%, which was primarily the result of the year-over-year decrease in net sales. EMEA gross profit decreased
$2.0 million year-over-year, partially as a result of decreased sales of $0.5 million combined with increased expenses in the region,
largely due to higher freight and raw material costs. Asia-Pacific’s gross profit decreased $1.0 million when compared to the year ended
December 31, 2020, largely as a result of the year-over-year decrease in sales of $11.6 million, partially offset by manufacturing cost
savings.

Costs and expenses. Costs and expenses of $118.7 million for the year ended December 31, 2021 increased $4.9 million, or 4%,
when compared to 2020. Excluding the unfavorable effect of currency translation, costs and expenses increased $2.5 million, or 2%, as
summarized in the following table:

Year Ended December 31

Change Change
(Thousands of dollars) Due to Excluding
Currency Currency %
2021 2020 Change Translation Translation Change
Costs and expenses
PLP-USA $ 55,111 $ 52,794 $ 2,317 $ 0 $ 2,317 4 %
The Americas 13,807 16,008 (2,201) (335) (1,866) (12)
EMEA 25,505 22,636 2,869 1,324 1,545 7
Asia-Pacific 24,270 22,368 1,902 1,357 545 2
Consolidated $ 118,693 $ 113,806 $ 4,887 $ 2,346 $ 2,541 2 %

PLP-USA costs and expenses of $55.1 million increased $2.3 million, or 4% year-over-year. PLP-USA’s increase was mainly
attributable to increased commissions of $2.1 million, a year-over-year incremental loss on foreign currency exchange of $1.3 million,
partially offset by the prior year loss on sale of capital assets of $1.0 million combined with miscellaneous net decreases of $0.1 million.
PLP’s foreign currency exchange losses were primarily related to translating into U.S. dollars its foreign currency denominated loans,
trade receivables and royalty receivables from its foreign subsidiaries at the December 2021 year-end exchange rates. PLP’s costs and
expenses for the year ended December 31, 2020 were unfavorably impacted by $2.3 million when local currencies were translated to
U.S. dollars. The following discussions of costs and expenses exclude the effect of currency translation. The Americas costs and
expenses decrease of $1.9 million was primarily due to a prior year litigation reserve of $2.2 million, partially offset by miscellaneous

21
net decreases of $0.3 million. EMEA costs and expenses of $25.5 million increased $1.5 million mainly due to higher personnel related
costs of $1.8 million, partially offset by a decrease in bad-debt expense of $0.3 million. Asia-Pacific costs and expenses of $24.3 million
increased $0.5 million primarily due to an increase in personnel related costs.

Other income, net. Other income, net of $1.3 million for the year ended December 31, 2021 was favorable by $1.0 million when
compared to other income, net for the twelve months ended December 31, 2020 of $0.4 million. Other income, net for year ended
December 31, 2021 includes a pre-tax recovery of approximately $2.1 million related to a recent Brazilian Supreme Court decision that
granted the Company the right to recover, through offset of federal tax liabilities, certain tax overpayments collected by the Brazilian
government. During the year ended December 31, 2020, the Asia-Pacific segment recorded $1.1 million of income for COVID-19
related government subsidies which did not recur in 2021 which partially offset the current year income realized in Brazil.

Income taxes. Income taxes for the years ended December 31, 2021 and 2020 were $13.2 million and $10.8 million, respectively,
based on pre-tax income of $48.9 million and $40.6 million, respectively. The effective tax rate for the years ended December 31, 2021
and 2020 was 27.0% and 26.6%, respectively, compared to the U.S. federal statutory rate of 21.0%. Our effective tax rate is affected
by recurring items, such as tax rates in foreign jurisdictions, which differ from the U.S. federal statutory income tax rate, and the relative
amount of income earned in those jurisdictions where such earnings are permanently reinvested. It is also affected by discrete items
that may occur in any given period but are not consistent from year to year. The following items had the most significant impact on the
difference between our statutory U.S. federal income tax rate of 21.0%:

2021
1. A $0.8 million, or 1.6%, net increase resulting from higher U.S. permanent items primarily related to limitations on the
deductibility of executive compensation, plus credits.
2. A $1.0 million, or 2.0%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal
statutory rate where such earnings are permanently reinvested.
3. A $0.7 million, or 1.4%, net increase resulting from state and local taxes, net of federal benefit.

2020
1. A $0.7 million, or 1.7%, net increase resulting from higher U.S. permanent items primarily related to limitations on the
deductibility of executive compensation, plus credits.
2. A $0.2 million, or 0.6%, net decrease resulting from losses in certain jurisdictions where no tax benefit was previously
recognized.
3. A $1.3 million, or 3.2%, net increase resulting from earnings in jurisdictions with higher tax rates than the U.S. federal
statutory rate where such earnings are permanently reinvested.
4. A $0.9 million, or 2.2%, net increase resulting from state and local taxes, net of federal benefit.

Net income. As a result of the preceding items, net income for the year ended December 31, 2021 was $35.7 million, compared
to $29.8 million for 2020. Excluding the effect of currency translation, net income increased $5.5 million as summarized in the following
table:

Year Ended December 31

Change Change
(Thousands of dollars) Due to Excluding
Currency Currency %
2021 2020 Change Translation Translation Change
Net income
PLP-USA $ 24,384 $ 16,564 $ 7,820 $ 0 $ 7,820 47 %
The Americas 8,351 5,068 3,283 59 3,224 64
EMEA 3,715 6,644 (2,929) 335 (3,264) (49)
Asia-Pacific (721) 1,527 (2,248) 20 (2,268) (149)
Consolidated $ 35,729 $ 29,803 $ 5,926 $ 414 $ 5,512 18 %

PLP-USA’s net income of $24.4 million increased $7.8 million year-over-year, mainly due to an increase in operating income of
$10.2 million, partially offset by an increase in income tax expense of $2.5 million. International net income for the year ended
December 31, 2021 was favorably affected by approximately $0.4 million when local currencies were converted to U.S. dollars. The
following discussion of net income excludes the effect of currency translation. The Americas net income of $8.4 million increased $3.2
million mainly as a result of a $1.5 million increase in operating income combined with an increase in other income (expense) of $2.5

22
million, partially offset by an increase in income tax expense of $0.7 million. EMEA net income decreased $3.3 million as a result of a
$3.5 million decrease in operating income, partially offset by a decrease in income tax expense. Asia-Pacific net income decreased $2.3
million mainly as a result of a $1.6 million decrease in operating income, a decrease in other income, net of $0.9 million, partially offset
by a decrease in income tax expense for the region of $0.2 million.

WORKING CAPITAL, LIQUIDITY AND CAPITAL RESOURCES

Management Assessment of Liquidity
We measure liquidity on the basis of our ability to meet short-term and long-term operating needs, fund additional investments,
including acquisitions, and make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash
flows from operating activities, capital expenditures, cash dividends, business acquisitions and access to bank lines of credit.

Our investments include expenditures required for equipment and facilities as well as expenditures in support of our strategic
initiatives. In 2021, we used cash of $18.4 million for capital expenditures. At December 21, 2021, we had $36.4 million of cash, cash
equivalents and restricted cash (collectively “Cash”). Our Cash is held in various locations throughout the world. At December 31,
2021, the majority of our cash is held outside the U.S.

We expect the majority of accumulated non-U.S. cash balances will remain outside of the U.S. and that we will meet U.S. liquidity
needs through future cash flows, use of U.S. cash balances, external borrowings, or some combination of these sources.

We complete comprehensive reviews of our significant customers and their creditworthiness by analyzing financial statements
for customers where we have identified a measure of increased risk. We closely monitor payments and developments that may signal
possible customer credit issues. We currently have not identified any potential material impact on our liquidity from customer credit
issues.

Our financial position remains strong and our current ratio at December 31, 2021 and 2020 was 2.6 to 1 and 2.4 to 1, respectively.
Total debt, including Notes payable, at December 31, 2021 was $59.6 million. On April 17, 2020, we extended the term on its $65.0
million Credit Facility (the "Facility") from June 30, 2021 to June 30, 2024 and added its Austrian subsidiary as a borrower on the
Facility. All other terms remained the same, including the interest rate at LIBOR plus 1.125% unless the Company’s funded debt to
Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the LIBOR spread becomes 1.500%. At
December 31, 2021, we had the following borrowings on the $65.0 million Facility; the U.S. borrowed $3.4 million at 1.205%, our
Polish subsidiary borrowed $6.1 million at 2.455%, our Australian subsidiary borrowed $2.4 million at 2.980% and our Austrian
subsidiary borrowed $1.4 million at 1.216%. Under the Facility, at December 31, 2021, we had utilized $13.3 million with $51.7 million
available, net of long-term outstanding letters of credit of $0.1 million. Our bank debt to equity percentage was 18.8%. The Facility
agreement contains, among other provisions, requirements for maintaining levels of net worth and profitability. At December 31, 2021,
we were in compliance with these covenants.

On March 2, 2022, the we entered into an amendment to the Facility to increase the borrowing capacity from $65.0 million to
$90.0 million. As part of this amendment, the index used to determine the interest rate changed from LIBOR to the Bloomberg Short
Term Bank Yield Index ("BSBY"). The interest rate will now be defined as BSBY plus 1.125% unless the funded debt to Earnings
before Interest, Taxes and Depreciation ration exceeds 2.25 to 1, at which point the BSBY spread becomes 1.500%. The amendment
also allows us to change our rate from BSBY to the Second Overnight Financing Rate ("SOFR") at the its discretion. The amendment
extended the maturity from June 30, 2024 to March 2, 2026. All other terms remain the same.

Our Asia-Pacific segment had $0.2 million and $0.6 million in restricted cash at December 31, 2021 and 2020, respectively. The
restricted cash was used to secure bank debt and is included in Cash and Other assets for the years ended December 31, 2021 and 2020,
respectively, on the balance sheet.

We sold our corporate aircraft in December of 2020, thereby eliminating the balance due on the previous loan which was secured
by the corporate aircraft. The proceeds of the sale were used to pay off the debt associated with the former aircraft. On January 19,
2021, the Company received funding for a term loan in the amount of $20.5 million to fund the purchase of a new corporate aircraft. At
December 31, 2021, the outstanding balance on the term loan was $18.8 million, of which $2.1 million was classified as current. See
Note E in the Notes to Consolidated Financial Statements for more information.

We expect that our major source of funding for 2022 and beyond will be our operating cash flows, our existing cash and cash
equivalents as well as our Credit Facility agreement. We earn a significant amount of our operating income outside the United States,
which, except for current earnings in certain jurisdictions, is deemed to be indefinitely reinvested in foreign jurisdictions. We currently
do not intend nor foresee a need to repatriate these funds. We believe our future operating cash flows will be more than sufficient to
cover debt repayments, other contractual obligations, capital expenditures and dividends for the next 12 months and thereafter for the

23
foreseeable future. In addition, we believe our borrowing capacity provides substantial financial resources, if needed, to supplement
funding of capital expenditures and/or acquisitions. We also believe that we can further expand our borrowing capacity, if necessary;
however, we do not believe we would increase our debt to a level that would have a material adverse impact upon results of operations
or financial condition.

Sources and Uses of Cash

Cash at December 31, 2021 decreased $8.8 million when compared to December 31, 2020. Net Cash provided by operating
activities was $33.6 million. The most significant net investing and financing uses of Cash were net payments of debt of $14.2 million,
capital expenditures of $18.4 million, share repurchases of $5.3 million and dividends paid of $4.1 million. Currency had an unfavorable
impact of $0.9 million on Cash when translating foreign denominated financial statements to U.S. dollars.

Net Cash provided by operating activities for the years ended December 31, 2021 and 2020 was $33.6 million and $41.6 million,
respectively. The $8.0 million decrease was primarily a result of an increase in cash used to fund working capital of $26.9, partially
offset by miscellaneous net favorable movements in non-cash items of $12.9 million and an increase in net income of $6.0 million.

Net Cash used in investing activities of $18.2 million for the year ended December 31, 2021 represents an increase of $4.2 million
when compared to Cash used in investing activities for the year ended December 31, 2020. The increased use of Cash was primarily
related to the prior year Cash proceeds from the sale of property and equipment of $10.5 million, primarily from the sale of the corporate
aircraft, partially offset by a decrease in capital expenditures of $6.2 million.

Cash used in financing activities for both years ended December 31, 2021 and 2020 was $23.2 million. The year-over-year change
in cash usage was due to an increase in net debt payments of $4.5 million, partially offset by a year-over-year decrease in cash used in
capital stock transactions of $4.4 million.

We have commitments under operating leases primarily for office and manufacturing space, transportation equipment, office and
computer equipment and capital leases, primarily for equipment. See Note F in the Notes to Consolidated Financial Statements for more
information.

As of December 31, 2021, the Company had total outstanding guarantees of $10.0 million. Additionally, certain domestic and
foreign customers require the Company to issue letters of credit or performance bonds as a condition of placing an order. As of December
31, 2021, the Company had total outstanding letters of credit of $2.2 million.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of our financial condition and results of operations are based upon the consolidated financial
statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires
us to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses and related disclosure
of contingent assets and liabilities at the date of the consolidated financial statements. Actual results may differ from these estimates
under different assumptions or conditions.

Critical accounting policies are defined as those that are reflective of significant judgment and uncertainties, and potentially may
result in materially different outcomes under different assumptions and conditions.

Revenue Recognition
Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the
amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the
Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily
based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered
to or picked up by the customer. The Company estimates product returns based on historical return rates.

Allowance for Credit Losses

We maintain an allowance for credit losses for estimated losses resulting from the inability of our customers to make required
payments. We record estimated allowances for uncollectible accounts receivable based upon the number of days the accounts are past
due, the current business environment, and specific information such as bankruptcy or liquidity issues of customers. If the financial
condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may
be required. The allowance for credit losses represents approximately 3.0% and 2.8% of our trade receivables balance at December 31,
2021 and 2020, respectively.

24
Excess and Obsolescence Reserves
We provide excess and obsolescence reserves to state inventories at the lower of cost or estimated net realizable value. We identify
inventory items that have had no usage or are in excess of the usages over the historical 12 to 24 months. A management team with
representatives from marketing, manufacturing, engineering and finance reviews these inventory items, determines the disposition of
the inventory and assesses the net realizable value based on their knowledge of the product and market conditions. These conditions
include, among other things, future demand for product, product utility, unique customer order patterns or unique raw material purchase
patterns, changes in customer and quality issues. The reserve for excess and obsolete inventory was 6.6% and 7.5% of gross inventory
for the years ended December 31, 2021 and December 31, 2020, respectively. If the impact of market conditions deteriorates from those
projected by management, additional inventory reserves may be necessary.

Impairment of Long-Lived Assets

We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets are
impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying value of those items. Our
cash flows are based on historical results adjusted to reflect the best estimate of future market and operating conditions. The net carrying
value of assets not recoverable is then reduced to fair value. The estimates of fair value represent the best estimate based on industry
trends and reference to market rates and transactions.

Goodwill
Our measurement date for our annual impairment test is October 1 of each year. We did not have any impairment for goodwill
for the years ended December 31, 2021 or 2020. See Note J for additional information.

We may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting units
where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is performed
to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that determination is
made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the reporting unit.

For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow
methodology, and the market approach, which uses comparable market multiples, in computing fair value by reporting unit. The
Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair
value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted-
average cost of capital ("WACC"), and estimated market multiples, of which are affected by expectations of future market or economic
conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in
appropriate fair values of the reporting units.

Impairment assessments inherently involve management judgments regarding a number of assumptions. Due to the multiple
variables inherent in arriving at the estimates of the reporting unit's fair value, differences in assumptions could have an effect on the
estimated fair value of a reporting unit and could result in goodwill impairment charges in a future period.

Deferred Tax Assets

Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income
tax basis of assets and liabilities and operating loss and tax credit carryforwards. We establish a valuation allowance to record our
deferred tax assets at an amount that is more-likely-than-not to be realized. In the event we were to determine that we would be able to
realize our deferred tax assets in the future in excess of their recorded amount, an adjustment to the valuation allowance would increase
income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of
our net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense in the period such
determination was made.

Pension Obligations
We record obligations and expenses related to a pension benefit plan based on actuarial valuations, which include key assumptions
on discount rates, expected returns on plan assets and compensation increases. These actuarial assumptions are reviewed annually and
modified as appropriate. The effect of modifications is generally recorded or amortized over future periods. The discount rate of 2.92%
at December 31, 2021 reflects an analysis of yield curves as of the end of the year and the schedule of expected cash needs of the plan.
The expected long-term return on plan assets of 6.50% reflects the plan’s historical returns and represents our best estimate of the likely
future returns on the plan’s asset mix. We believe the assumptions used in recording obligations under the plans are reasonable based
on prior experience, market conditions and the advice of plan actuaries. However, an increase in the discount rate would decrease the
plan obligations and the net periodic benefit cost, while a decrease in the discount rate would increase the plan obligations and the net

25
periodic benefit cost. In addition, an increase in the expected long-term return on plan assets would decrease the net periodic pension
cost, while a decrease in expected long-term return on plan assets would increase the net periodic pension cost.

26
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
The Company operates manufacturing facilities and offices around the world and uses fixed and floating rate debt to finance the
Company's global operations. As a result, the Company is subject to business risks inherent in non-U.S. activities, including political
and economic uncertainty, import and export limitations and market risk related to changes in interest rates and foreign currency
exchange rates. The Company believes that the political and economic risks related to the Company's international operations are
mitigated due to the geographic diversity in which the Company's international operations are located.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation
rate exceeded 100%. As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S.
dollar. Revenue from operations in Argentina represented less than 1% of total consolidated net sales for the year ended December 31,
2021 and less than 2% of consolidated net sales for the years ended December 31, 2020 and 2019.

As of December 31, 2021, the Company had $0.5 million in foreign currency forward exchange contracts outstanding. The
Company does not hold derivatives for trading purposes.

The Company's primary currency rate exposures are related to foreign denominated debt, intercompany debt, forward exchange
contracts, foreign denominated receivables and payables and cash and short-term investments. A hypothetical 10% change in currency
rates would have a favorable/unfavorable impact on fair values on such instruments of $5.3 million and on income before tax of $1.6
million.

The Company is exposed to market risk, including changes in interest rates. The Company is subject to interest rate risk on its
variable rate revolving credit facilities and term notes, which consisted of long-term borrowings of $43.2 million at December 31, 2021.
A 100 basis point increase in the interest rate would have resulted in an increase in interest expense of approximately $0.6 million for
the year ended December 31, 2021.

Included in the Company’s accounting for the defined benefit pension plan (“Plan”) are assumptions on future discount rates and
the expected return on Plan assets. The Company considers current market conditions, including changes in interest rates and Plan asset
investment returns. Actuarial assumptions may differ materially from actual results due to changing market, demographic and economic
conditions or higher or lower withdrawal rates. These differences may result in a significant impact to the amount of net pension expense
or income recorded in the future.

A discount rate is used to determine the present value of future payments. In general, our liability increases as the discount rate
decreases and decreases as the discount rate increases. The discount rate used to determine the future benefit obligation was 2.92% and
2.69% at December 31, 2021 and 2020, respectively. The discount rate is a significant factor in determining the amounts reported. A
50 basis point change in the discount rate of 2.92% used at December 31, 2021 would have a $3.4 million effect on the Plan’s projected
benefit obligation.

The Company developed the expected return on Plan assets by considering various factors which include targeted asset allocation
percentages, historical returns, and expected future returns. The Company assumed an expected rate of return of 6.50% and 7.00% for
the years ended December 31, 2021 and 2020, respectively. A 50 basis point change in the expected rate of return would have a $0.2
million effect on the Plan’s subsequent year’s net periodic pension cost.

As discussed elsewhere in this report, the continuing effects of COVID-19 could negatively impact the Company’s business and
results of operations. Since we cannot predict the duration or scope of the COVID-19 pandemic or the possibility or severity of new
variants, the potential negative financial impact to the Company’s results cannot be reasonably estimated but could be material.
Although the recent deployment of vaccinations is expected to mitigate potential future adverse impact, the impact cannot be predicted
with certainty.

27
Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

of Preformed Line Products Company

Opinion on the Financial Statements

We have audited the accompanying Consolidated Balance Sheets of Preformed Line Products (the Company) as of December 31, 2021
and 2020, the related Statements of Consolidated Income, Comprehensive Income, Cash Flows, and Shareholders' Equity for each of
the three years in the period ended December 31, 2021, and the related notes and financial statement schedule listed in the Index at Item
15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present
fairly, in all material respects, the consolidated financial position of the Company at December 31, 2021 and 2020, and the consolidated
results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with U.S.
generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control-
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our
report dated March 4, 2022 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that
our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material
to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the
critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures
to which it relates.

28
 Quantitative Impairment Assessment of Goodwill

Description of the matter At December 31, 2021, the Company’s goodwill was $28.2 million. As discussed in Note J to the
consolidated financial statements, goodwill is tested for impairment at least annually at the reporting unit
level or more frequently if impairment indicators arise using either a qualitative or quantitative
assessment. Under the quantitative assessment, goodwill is tested for impairment utilizing a combination
of the income approach, which uses a discounted cash flow methodology, and the market approach,
which uses comparable company market multiples, to estimate the fair value of each reporting unit.

Auditing management’s quantitative goodwill impairment assessment for one reporting unit was
complex and highly judgmental due to the significant estimation required to determine the fair value of
the reporting unit. In particular, the fair value estimate was sensitive to significant assumptions, such as
revenue growth rates, operating margins, weighted average cost of capital (WACC), and estimated
market multiples, which are affected by expectations of future market or economic conditions.

We obtained an understanding, evaluated the design and tested the operating effectiveness of controls
How we addressed the matter over the Company’s goodwill impairment process. This included controls over management’s review
in our audit of the significant assumptions underlying the fair value determination described above.

To test the estimated fair value of the Company’s reporting unit, we performed audit procedures that
included, among others, assessing the methodologies used, testing the significant assumptions described
above, and testing the underlying data used by the Company in its analysis. For example, we compared
the significant assumptions used by management to current industry and economic trends and to
historical results. We assessed the historical accuracy of management’s estimates and performed
sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting
unit that would result from changes in the assumptions. We also utilized our specialists to review the
methodology, and certain assumptions such as the WACC and market multiples.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2008
Cleveland, Ohio
March 4, 2022

29
 PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
December 31
2021 2020
(Thousands of dollars, except share and per share data)
ASSETS
Cash, cash equivalents and restricted cash $ 36,406 $ 45,175
Accounts receivable, less allowances of $3,744 ($3,464 in 2020) 98,203 92,686
Inventories - net 114,507 97,537
Prepaid expenses 19,778 17,660
Other current assets 3,217 3,256
TOTAL CURRENT ASSETS 272,111 256,314
Property, plant and equipment - net 149,774 125,965
Operating lease, right-of-use assets 12,400 13,139
Goodwill 28,194 29,508
Other intangible assets - net 12,039 14,443
Deferred income taxes 3,839 10,863
Other assets 10,661 10,855
TOTAL ASSETS $ 489,018 $ 461,087
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable $ 42,376 $ 31,646
Notes payable to banks 16,423 17,428
Operating lease liabilities, current 1,986 2,240
Current portion of long-term debt 3,116 5,216
Accrued compensation 13,756 14,736
Accrued expenses and other liabilities 17,522 17,508
Accrued profit-sharing and other benefits 7,947 8,252
Dividends payable 1,301 1,292
Income taxes payable 1,108 5,456
TOTAL CURRENT LIABILITIES 105,535 103,774
Long-term debt, less current portion 40,048 33,333
Pension obligation 3,653 5,826
Operating lease liabilities, non-current 8,154 8,743
Deferred income taxes 2,791 2,921
Other noncurrent liabilities 12,737 14,421
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares - $2 par value per share, 15,000,000 shares authorized, 4,907,143
and 4,902,233 issued and outstanding, at December 31, 2021 and December 31,
2020, respectively 13,185 13,028
Common shares issued to rabbi trust, 243,138 and 265,508 shares at December 31,
2021 and December 31, 2020, respectively (10,102) (10,940)
Deferred compensation liability 10,102 10,940
Paid-in capital 47,814 43,134
Retained earnings 410,673 379,035
Treasury shares, at cost, 1,685,387 and 1,611,927 shares at December 31 and
December 31, 2020, respectively (93,836) (88,568)
Accumulated other comprehensive loss (61,719) (54,551)
TOTAL PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS' EQUITY 316,117 292,078
Noncontrolling interest (17) (9)
TOTAL SHAREHOLDERS' EQUITY 316,100 292,069
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 489,018 $ 461,087
See notes to consolidated financial statements.

30
 PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME

Year Ended December 31

2021 2020 2019
(In thousands, except per share data)
Net sales $ 517,417 $ 466,449 $ 444,861
Cost of products sold 351,175 312,436 304,266
GROSS PROFIT 166,242 154,013 140,595
Costs and expenses
Selling 40,539 35,637 36,609
General and administrative 55,257 56,335 51,806
Research and engineering 19,188 17,625 17,187
Other operating expenses - net 3,709 4,209 2,366
118,693 113,806 107,968
OPERATING INCOME 47,549 40,207 32,627
Other income (expense)
Interest income 169 259 783
Interest expense (2,023) (2,396) (2,217)
Other income - net 3,201 2,501 265
1,347 364 (1,169)
INCOME BEFORE INCOME TAXES 48,896 40,571 31,458
Income tax expense 13,175 10,810 8,122
NET INCOME $ 35,721 $ 29,761 $ 23,336
Net loss (income) attributable to noncontrolling interests 8 42 (33)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE
PRODUCTS COMPANY SHAREHOLDERS $ 35,729 $ 29,803 $ 23,303
AVERAGE NUMBER OF SHARES OF COMMON STOCK
OUTSTANDING:
Basic 4,907 4,923 5,031
Diluted 4,970 4,984 5,087
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE
TO PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS:
Basic $ 7.28 $ 6.05 $ 4.63
Diluted $ 7.19 $ 5.98 $ 4.58

See notes to consolidated financial statements.

31
 PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

Year Ended December 31

2021 2020 2019
(Thousands of dollars)
Net income $ 35,721 $ 29,761 $ 23,336
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment (8,376) 3,835 2,028
Recognized net actuarial gains 469 363 397
Gain (loss) on unfunded pension obligations 739 (1,396) (195)
Other comprehensive (loss) income, net of tax (7,168) 2,802 2,230
Less: Comprehensive loss (income) attributable to noncontrolling interests 8 42 (33)
Comprehensive income attributable to Preformed Line Products
Company shareholders $ 28,561 $ 32,605 $ 25,533

See notes to consolidated financial statements.

32
 PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED CASH FLOWS

Year Ended December 31

2021 2020 2019
(Thousands of dollars)
OPERATING ACTIVITIES
Net income $ 35,721 $ 29,761 $ 23,336
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization 15,564 13,838 13,748
Provision for accounts receivable allowances 2,895 2,053 2,132
Provision for inventory reserves 3,052 2,035 1,283
Deferred income taxes 6,544 (3,380) (1,274)
Share-based compensation expense 4,163 4,089 4,396
(Gain) loss on sale of property and equipment (184) 1,108 10
Other - net 656 6 292
Changes in operating assets and liabilities
assets:
Accounts receivable (11,576) (10,539) (9,777)
Inventories (24,154) 80 (9,455)
Prepaid expenses (2,974) (8,786) (932)
Trade accounts payables and accrued liabilities 11,558 6,952 6,087
Accrued income and other taxes (4,332) 3,470 634
Contributions to company pension plan 0 (330) 0
Other - net (3,335) 1,285 (3,263)
NET CASH PROVIDED BY OPERATING ACTIVITIES 33,598 41,642 27,217
INVESTING ACTIVITIES
Capital expenditures (18,384) (24,569) (29,467)
Proceeds from the sale of property and equipment 141 10,525 54
Purchase of marketable securities 0 0 (496)
Proceeds from sale of marketable securities 0 0 2,309
Purchase of company owned life insurance policies 0 0 (2,309)
Acquisition of businesses, net of cash 0 0 (18,894)
NET CASH USED IN INVESTING ACTIVITIES (18,243) (14,044) (48,803)
FINANCING ACTIVITIES
Increase (decrease) in notes payable to banks 376 9,465 (355)
Proceeds from long-term debt 98,919 90,847 93,036
Payments of long-term debt (113,537) (110,083) (64,124)
Dividends paid (4,128) (4,184) (4,230)
Proceeds from issuance of common shares 409 252 213
Purchase of common shares for treasury (177) (5,836) (2,800)
Purchase of common shares for treasury from related parties (5,092) (3,626) (4,026)
NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES (23,230) (23,165) 17,714
Effects of exchange rate changes on cash and cash equivalents (894) 1,479 (775)
Net (decrease) increase in cash, cash equivalents and restricted cash (8,769) 5,912 (4,647)
Cash, cash equivalents and restricted cash at beginning of year 45,175 39,263 43,910
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT
END OF YEAR(1) $ 36,406 $ 45,175 $ 39,263

(1) Non-cash investing and financing activities: The Company purchased a new corporate aircraft during the year ended December 31,
2021 with a term loan in the principal amount of $20.5 million. For further information regarding this transaction, refer to Note E, “Debt
and Credit Arrangements.”

See notes to consolidated financial statements.

33
 PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED SHAREHOLDERS’ EQUITY
Accumulated Other
Comprehensive Income
(Loss)
Total
Preformed
Common Line
Shares Deferred Cumulative Unrecognized Products
Common Issued to Compensation Paid in Retained Treasury Translation Pension Company Noncontrolling Total
Shares Rabbi Trust Liability Capital Earnings Shares Adjustment Benefit Cost Equity Interests Equity
(In thousands, except share and per share data)
Balance at January 1, 2019 $ 12,662 $ (11,008) $ 11,008 $ 34,401 $ 334,170 $ (72,280) $ (53,710) $ (5,873) $ 249,370 $ 0 $ 249,370
Net income 23,303 23,303 33 23,336
Foreign currency translation
adjustment 2,028 2,028 2,028
Recognized net actuarial gain,
net of tax provision of $123 397 397 397
Loss on unfunded pension
obligations, net of tax benefit
of $60 (195) (195) (195)
Total comprehensive income 25,533 33 25,566
Share-based compensation 4,396 (167) 4,229 4,229
Purchase of 120,848 common
shares (6,826) (6,826) (6,826)
Issuance of 88,377 common
shares 186 57 243 243
Common shares distributed
from rabbi trust of 1,989, net 27 (27) 0 0
Cash dividends declared - $0.80
per share (4,014) (4,014) (4,014)
Balance at December 31, 2019 $ 12,848 $ (10,981) $ 10,981 $ 38,854 $ 353,292 $ (79,106) $ (51,682) $ (5,671) $ 268,535 $ 33 $ 268,568
Net income 29,803 29,803 (42) 29,761
Foreign currency translation
adjustment 3,835 3,835 3,835
Recognized net actuarial gain,
net of tax provision of $112 363 363 363
Loss on unfunded pension
obligations, net of tax benefit
of $433 (1,396) (1,396) (1,396)
Total comprehensive income 32,605 (42) 32,563
Share-based compensation 4,089 (148) 3,941 3,941
Purchase of 120,848 common
shares (9,462) (9,462) (9,462)
Issuance of 88,377 common
shares 180 191 371 371
Common shares distributed
from rabbi trust of 19,396, net 41 (41) 0 0
Cash dividends declared - $0.80
per share (3,912) (3,912) (3,912)
Balance at December 31, 2020 $ 13,028 $ (10,940) $ 10,940 $ 43,134 $ 379,035 $ (88,568) $ (47,847) $ (6,704) $ 292,078 $ (9) $ 292,069
Net income 35,729 35,729 (8) 35,721
Foreign currency translation
adjustment (8,376) (8,376) (8,376)
Recognized net actuarial gain,
net of tax provision of $145 469 469 469
Loss on unfunded pension
obligations, net of tax benefit
of $229 739 739 739
Total comprehensive income 28,561 (8) 28,553
Share-based compensation 4,163 (166) 3,997 3,997
Purchase of 73,460 common
shares (5,268) (5,268) (5,268)
Issuance of 78,730 common
shares 157 517 674 674
Common shares distributed
from rabbi trust of 22,370, net 838 (838) 0 0
Cash dividends declared - $0.80
per share (3,925) (3,925) (3,925)
Balance at December 31, 2021 $ 13,185 $ (10,102) $ 10,102 $ 47,814 $ 410,673 $ (93,836) $ (56,223) $ (5,496) $ 316,117 $ (17) $ 316,100

See notes to consolidated financial statements.

34
 PREFORMED LINE PRODUCTS COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Tables in thousands of dollars, except share and per share data, unless specifically noted)

Note A - Significant Accounting Policies

Nature of Operations
Preformed Line Products Company and subsidiaries (the “Company”) is a designer and manufacturer of products and systems
employed in the construction and maintenance of overhead and underground networks for the energy, telecommunication, cable
operators, data communication and other similar industries. The Company’s primary products support, protect, connect, terminate and
secure cables and wires. The Company also provides solar hardware systems and mounting hardware for a variety of solar power
applications. The Company’s customers include public and private energy utilities and communication companies, cable operators,
governmental agencies, contractors and subcontractors, distributors and value-added resellers. The Company serves its worldwide
markets through strategically located domestic and international manufacturing facilities.

Principles of Consolidation and Noncontrolling Interests

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries for which it has a
controlling interest. All intercompany accounts and transactions have been eliminated upon consolidation.

Noncontrolling interests are presented in the Company’s Consolidated Financial Statements as if parent company investors
(controlling interests) and other minority investors (noncontrolling interests) in partially owned subsidiaries have similar economic
interests in a single entity. As a result, investments in noncontrolling interests are reported as equity in our Consolidated Financial
Statements. Additionally, the Company’s Consolidated Financial Statements include 100% of a controlled subsidiary’s earnings, rather
than only our share. Transactions between the parent company and noncontrolling interests are reported in equity as transactions between
stockholders, provided that these transactions do not create a change in control.

Cash and Cash Equivalents

Cash, cash equivalents and restricted cash (“Cash”) are stated at fair value and consist of highly liquid investments with original
maturities of three months or less at the time of acquisition. Restricted cash is included on the Cash and cash equivalents on the
Company’s Consolidated Balance Sheets.

Accounts Receivable Allowances

The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make
required payments. Prior to the adoption of Financial Accounting Standards Board (“FASB”) ASC 326 “Financial Instruments – Credit
Losses", the allowances for uncollectible accounts receivable were based upon the number of days the accounts are past due, the current
business and macroeconomic environment, geographic considerations and specific information such as bankruptcy or liquidity issues of
its customers. Rather than recognizing losses when they are deemed to be probable, the Company now uses a current expected credit
loss model in order to immediately recognize an estimate of credit losses that are expected to occur over the life of the financial
instruments, mainly trade receivables. Additionally, the allowance is based upon identified delinquent accounts, customer payment
patterns and other analyses of historical data trends. The Company also maintains an allowance for future sales credits related to sales
recorded during the year. The estimated allowance is based on historical sales credits issued in the subsequent year related to the prior
year and any significant, preapproved open return good authorizations as of the balance sheet date.

Inventories
The Company uses the last-in, first-out (“LIFO”) method of determining cost for the majority of its material portion of inventories
in PLP-USA. All other inventories are determined by the first-in, first-out (“FIFO”) or average cost methods. Inventories are carried
at net realizable value. Reserves are maintained for estimated obsolescence or excess inventory based on past usage and future demand.

Fair Value of Financial Instruments

Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 825, “Disclosures about Fair
Value of Financial Instruments,” requires disclosures of the fair value of financial instruments. The estimated fair value of financial
instruments was principally based on market prices where such prices were available, and when unavailable, fair values were estimated
based on market prices of similar instruments.

35
Property, Plant and Equipment and Depreciation
Property, plant, and equipment is recorded at cost. Depreciation is computed using the straight-line method over the estimated
useful lives. The estimated useful lives used, when purchased new, are: land improvements, ten years; buildings, forty years; building
improvements, five to forty years; machinery and equipment, three to ten years; and aircraft, fifteen years. Appropriate reductions in
estimated useful lives are made for property, plant and equipment purchased in connection with an acquisition of a business or in a used
condition when purchased.

Long-Lived Assets
The Company records impairment losses on long-lived assets used in operations when events and circumstances indicate that the
carrying value of the assets are impaired and the undiscounted future cash flows estimated to be generated by such assets are less than
the carrying value. The Company’s cash flows are based on historical results adjusted to reflect the Company’s best estimate of future
market and operating conditions. The net carrying value of assets not recoverable is then reduced to fair value. The estimate of fair
value represents the Company’s best estimate based on industry trends and reference to market rates and transactions. The Company
did not record any impairment to long-lived assets during the years ended December 31, 2021 and 2020.

Goodwill and Other Intangibles

Goodwill and other intangible assets are generally recoded as a result of a business acquisition. Goodwill represents the excess of
purchase price over the fair value of the tangible and identifiable net assets acquired during a business combination and is not subject to
amortization but is subject to annual impairment testing. Goodwill is reviewed for impairment annually on October 1 or more frequently
when changes in circumstances indicate the carrying amount may be impaired. Such events or changes may include, but are not limited
to, a significant deterioration in overall economic conditions, changes in the business climate of the Company's industry, overall
performance indicators, a decline in the Company's market capitalization, business reorganization or restructuring or disposal of all or
part of a reporting unit.

Goodwill is tested for impairment at the reporting unit level, and is based on the net assets for each reporting unit, including
goodwill and intangible assets. The Company’s reporting units are equivalent to the reportable operating segments, except for the
Americas segment which has two reporting units (Canada and Other Americas). Goodwill is assigned to each reporting unit, as this
represents the lowest level that constitutes a business and is the level at which management regularly reviews the operating results. The
Other Americas reporting unit does not have any allocated goodwill.

Intangible assets with definite lives, consisting primarily of purchased customer relationships, patents, technology, customer
backlogs, trademarks and land use rights, are generally amortized over periods from four years to eighty-two years. The Company has
no indefinite lived intangible assets other than goodwill. The Company’s intangible assets with finite lives are generally amortized over
the period in which the economic benefits of the intangibles are consumed, using either a projected cash flow basis method or the
straight-line method. The straight-line method is used in circumstances in which it better reflects the pattern in which the economic
benefits of the intangible asset are consumed or otherwise expire compared to using a projected cash flow basis method. An evaluation
of the remaining useful life of intangible assets with a determinable life is performed on a periodic basis and when events and
circumstances warrant an evaluation. The Company assesses intangible assets with a determinable life for impairment when the carrying
amount may not be recoverable, consistent with its policy for assessing other long-lived assets. Approximately $0.3 million of
impairment charges were recorded in 2021 related to finite-lived intangible assets.

The Company may use both quantitative and qualitative approaches when testing goodwill for impairment. A qualitative analysis
is performed by assessing certain trends and factors, including projected market outlook and growth rates, forecasted and actual sales
and gross profit margins, discount rates and other relevant qualitative factors. These trends and factors are compared to, and based on,
the assumptions used in the most recent quantitative analysis performed for each reporting unit to determine if it is more likely than not
that the fair value of the reporting unit exceeds its carrying amount. If that determination is made, no further evaluation is necessary.
Otherwise, the Company performs a quantitative impairment test on the reporting unit.

For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow
methodology, and the market approach, which uses comparable market multiples, in computing fair value by reporting unit. The
Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair
value estimates are subjective and sensitive to significant assumptions, such as future cash flows, revenue growth rates, operating
margins, the weighted-average cost of capital ("WACC"), and estimated market multiples, of which are affected by expectations of
future market or economic conditions. The future cash flows are based on the Company’s long-term operating plan and a terminal value
was used to estimate the reporting unit’s cash flows beyond the period covered by the operating plan. The WACC is an estimate of the
overall after-tax rate of return required by equity and debt market holders of a business enterprise. The Company believes that the
methodologies, significant assumptions, and weightings used are reasonable and result in appropriate fair values of the reporting units.

36
 Impairment assessments inherently involve management judgments regarding a number of assumptions such as those described
above. Due to the multiple variables inherent in arriving at the estimates of the reporting unit's fair value, differences in assumptions
could have an effect on the estimated fair value of a reporting unit and could result in goodwill impairment charges in a future period.

Revenue Recognition
Net sales include products and shipping and handling charges, net of estimates for product returns. Revenue is measured as the
amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when the
Company satisfies the performance obligations under the contract and control of the product is transferred to the customer, primarily
based on shipping terms. Revenue for shipping and handling charges are recognized at the time the products are shipped to, delivered
to or picked up by the customer. Payment terms vary by the type and location of the customer and the products offered but are generally
short-term in nature. The Company estimates product returns based on historical return rates.

Research and Development

Research and development costs for new products are expensed as incurred and totaled $3.3 million in 2021, $2.8 million in 2020
and $3.0 million in 2019.

Income Taxes
Income taxes are computed in accordance with the provisions of FASB ASC 740, “Income Taxes” and includes U.S. (federal and
state) and foreign income taxes. In the Consolidated Financial Statements, the benefits of a consolidated return have been reflected
where such returns have or could be filed based on the entities and jurisdictions included in the financial statements.

Uncertain tax positions are recorded in accordance with ASC 740 on the basis of a two-step process whereby (1) the Company
determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position
and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of
tax benefit that is more than likely than not to be realized upon ultimate settlement with the related tax authority.

Deferred taxes are recognized at currently enacted tax rates for temporary differences between the financial reporting and income
tax basis of assets and liabilities and operating loss and tax credit carryforwards. The Company establishes a valuation allowance to
record deferred tax assets at an amount that is more-likely-than-not to be realized. In the event the Company were to determine that it
would be able to realize our deferred tax assets in the future in excess of the recorded amount, an adjustment to the valuation allowance
would increase income in the period such determination was made. Likewise, should the Company determine that it would not be able
to realize all or part of the net deferred tax assets in the future, an adjustment to the valuation allowance would be charged to expense
in the period such determination was made.

Advertising
Advertising costs are expensed as incurred and totaled $1.5 million in 2021, $0.3 million in 2020 and $1.9 million in 2019.

Foreign Currency Translation

Asset and liability accounts are translated into U.S. dollars using exchange rates in effect at the date of the Consolidated Balance
Sheet. The translation adjustments are recorded in Accumulated other comprehensive income (loss). Revenues and expenses are
translated at weighted average exchange rates in effect during the period. Transaction gains and losses arising from exchange rate
changes on transactions denominated in a currency other than the functional currency are included in income and expense as incurred.
Aggregate transaction losses, including hedge activity, for both years ended December 31, 2021 and 2020 was $1.0 million and was
$1.2 million for the year ended December 31, 2019. Upon sale or substantially complete liquidation of an investment in a foreign entity,
the cumulative translation adjustment for that entity is reclassified from Accumulated other comprehensive income (loss) to earnings.

Effective July 1, 2018, Argentina was designated as a highly inflationary economy as the projected three-year cumulative inflation
rate exceeded 100%. As such, beginning July 1, 2018, the functional currency for the Company’s Argentina subsidiary became the U.S.
dollar. The impact to the Company’s consolidated financial statements for accounting of the Argentina subsidiary under highly
inflationary economy rules is not material. Revenue from operations in Argentina was less than 1% of total consolidated net sales for
both years ended December 31, 2021 and 2020 and less than 2% of consolidated net sales for the year ended December 31, 2019.

37
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from these estimates.

Business Combinations
Upon acquisition of a business, the Company uses the income, market or cost approach (or a combination thereof) for the valuation
as appropriate. The valuation inputs in these models and analyses are based on market participant assumptions. Market participants are
considered to be buyers and sellers unrelated to the Company in the principal or most advantageous market for the asset or liability.

In the event there is an earn-out associated with an acquisition, the Company uses a valuation model to measure the contingent
consideration, which may include significant assumptions such as revenue projections and discount rates. The Company uses a
discounted cash flow model to measure the useful lives of intangible assets. The significant assumptions used to estimate the fair value
of the intangible assets include discount rates and certain assumptions that form the basis of future cash flows (such as revenue growth
rates, attrition rates, and royalty rates). These assumptions relate to the future performance of the acquired businesses, are forward-
looking and could be affected by future economic and market conditions.

Fair value estimates are based on a series of judgments about future events and uncertainties and rely heavily on estimates and
assumptions. Management values property, plant and equipment using the cost approach supported where available by observable
market data, which includes consideration of obsolescence. Acquired inventories are marked to fair value. For certain items, the carrying
value is determined to be a reasonable approximation of fair value based on information available to the Company.

Derivative Financial Instruments

The Company operates internationally and enters into intercompany transactions denominated in foreign currencies.
Consequently, the Company is subject to market risk arising from exchange rate movements between the dates foreign currency
transactions occur and the dates they are settled. The Company currently uses foreign currency forward contracts to reduce the risk
related to some of these transactions. These contracts usually have maturities of 90 days or less and generally require an exchange of
foreign currencies for U.S. dollars at maturity at rates stated in the contracts. These contracts are not designated as hedging instruments
under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting
period in “Other operating expense - net” on the Consolidated Statements of Income together with the transaction gain or loss from the
related balance sheet position. The Company records the contracts at fair value in the Consolidated Balance Sheets. The Company does
not hold derivatives for trading purposes.

Recently Adopted Accounting Pronouncements

On January 1, 2021, the Company adopted Account Standards Update (ASU) 2019-12, Income Taxes (ASC 740) – Simplifying
the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general
principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. The adoption of ASU 2019-
12 did not have a material impact on the Consolidated financial statements.
No other recently issued or effective ASU's had, or are expected to have, a material impact on the Company's results of operations,
financial condition or liquidity.

Note B - Other Financial Statement Information

Inventories – net

December 31
2021 2020
Raw materials $ 76,636 $ 53,947
Work-in-process 10,117 9,272
Finished products 37,216 38,801
123,969 102,020
Excess of current cost over LIFO cost (9,462) (4,483)
$ 114,507 $ 97,537

38
 Costs for inventories of certain material, mainly in the U.S., are determined using the LIFO method and totaled approximately
$44.0 million and $32.0 million at December 31, 2021 and 2020, respectively. The Company’s reserves for slow-moving and obsolete
inventory at December 31, 2021 and 2020 were $10.6 million and $9.9 million, respectively.

Property and equipment – net

Major classes of property, plant and equipment are as follows:

December 31
2021 2020
Land and improvements $ 21,039 $ 22,132
Buildings and improvements 99,403 97,909
Machinery, equipment and aircraft 204,945 176,377
Construction in progress 10,605 9,563
335,992 305,981
Less accumulated depreciation (186,218) (180,016)
$ 149,774 $ 125,965

Depreciation of property and equipment was $13.6 million in 2021, $12.2 million in 2020 and $12.3 million in 2019. Machinery,
equipment and aircraft includes $0.6 million and $0.3 million of financing leases at December 31, 2021 and 2020, respectively.

Legal proceedings
The Company can be party to a variety of pending legal proceedings and claims arising in the normal course of business, including,
but not limited to, litigation relating to employment, workers’ compensation, product liability, environmental and intellectual property.
The Company has liability insurance to cover many of these claims.

Although the outcomes of these matters are not predictable with certainty, the Company records a liability when it is both probable
that a liability has been incurred and the amount of the loss can be reasonably estimated. In the event the Company determines that a
loss is not probable, but is reasonably possible, and the likelihood to develop what the Company believes to be a reasonable range of
potential loss exists, the Company will include disclosure related to such matters. To the extent that there is a reasonable possibility the
losses could exceed amounts already accrued, the Company will adjust the accrual in the period in which the determination is made,
disclose an estimate of the additional loss or range of loss and if the amount of such adjustment cannot be reasonably estimated, disclose
that an estimate cannot be made. During the years ended December 31, 2021 and 2020, the Company maintained approximately $2.3
million and $2.2 million, respectively, representing its best estimate for losses to be incurred on global legal matters.

The Company and its subsidiaries Helix Uniformed Ltd. (“Helix”) and Preformed Line Products (Canada) Limited (“PLPC
Canada”), were each named, jointly and severally, with each of SNC-Lavalin ATP, Inc. (“SNC ATP”), HD Supply Canada Inc., by its
trade names HD Supply Power Solutions and HD Supply Utilities (“HD Supply”), and Anixter Power Solutions Canada Inc. (the
corporate successor to HD Supply, “Anixter” and, together with the Company, PLPC Canada, Helix, SNC ATP and HD Supply, the
(“Defendants”) in a complaint filed by Altalink, L.P. (the “Plaintiff”) in the Court of Queen’s Bench of Alberta in Alberta, Canada in
November 2016 (the “Complaint”).

The Complaint states that Plaintiff engaged SNC ATP to design, engineer, procure and construct numerous power distribution
and transmission facilities in Alberta (the “Projects”) and that through SNC ATP and HD Supply (now Anixter), spacer dampers
manufactured by Helix were procured and installed in the Projects. The Complaint alleges that the spacer dampers have and may continue
to become loose, open and detach from the conductors, resulting in damage and potential injury and a failure to perform the intended
function of providing spacing and damping to the Project. The Plaintiffs are seeking an estimated $56.0 million Canadian dollars in
damages jointly and severally from the Defendants, representing the costs of monitoring and replacing the spacer dampers and
remediating property damage, due to alleged defects in the design and construction of, and supply of materials for, the Projects by SNC
ATP and HD Supply/Anixter and in the design of the spacer dampers by Helix.

The Company believes the claims against it are without merit and intends to vigorously defend against such claims. The Company
is unable to predict the outcome of this case, however, it has recorded a reserve for the low end of the range for potential loss associated
with this matter. If this matter is concluded in a manner adverse to the Company, it could have a material effect on the Company’s
financial results.

39
 The Company is not a party to any other pending legal proceedings that the Company believes would, individually or in the
aggregate, have a material adverse effect on its financial condition, results of operations or cash flow.

Note C - Pension Plans

PLP-USA hourly employees of the Company who meet specific requirements as to age and length and date of service are covered
by a defined benefit pension plan (“Plan”). On December 12, 2012, the Company approved a freeze on further benefit accruals under
the Plan and notified the participants of the freeze on December 19, 2012. Beginning February 1, 2013, participants ceased earning
additional benefits under the Plan and no new participants entered the Plan. The Company uses a December 31 measurement date for
its Plan.

Net periodic pension cost for the Plan consists of the following components for the year ended December 31:

2021 2020 2019

Service cost $ 0 $ 0 $ 299
Interest cost 1,138 1,301 1,411
Expected return on plan assets (2,343) (2,251) (1,946)
Recognized net actuarial loss 614 475 520
Net periodic pension (income) cost $ (591) $ (475) $ 284

The following tables set forth benefit obligations, plan assets and the accrued benefit cost of the Plan at December 31:

2021 2020
Projected benefit obligation at beginning of the year $ 42,582 $ 37,936
Interest cost 1,138 1,301
Actuarial (gain) loss (958) 4,590
Benefits paid (1,352) (1,245)
Projected benefit obligation at end of year $ 41,410 $ 42,582

Fair value of plan assets at beginning of the year $ 36,756 $ 32,658

Actual return on plan assets 2,353 5,013
Employer contributions 0 330
Benefits paid (1,352) (1,245)
Fair value of plan assets at end of the year $ 37,757 $ 36,756

Unfunded pension obligation $ 3,653 $ 5,826

The actuarial gain in 2021 was primarily the result of an increase in the Plan discount rate from 3.50% in 2020 to 2.69% in 2021.

In accordance with ASC 715-20, the Company recognizes the underfunded status of the Plan as a liability. The amount recognized
in Accumulated other comprehensive loss related to the Plan at December 31 is comprised of the following:

2021 2020
Balance at January 1 $ (6,704) $ (5,671)

Reclassification adjustments:
Pre-tax amortized net actuarial gain 614 475
Tax provision (145) (112)
469 363

Adjustment to recognize (gain) loss on unfunded

pension obligations:
Pre-tax gain (loss) 968 (1,829)
Tax (provision) / benefit (229) 433
739 (1,396)

Balance at December 31 $ (5,496) $ (6,704)

40
 The 2021 pre-tax unfunded pension obligation gain of $1.0 million included a gain of $1.5 million due to a .23% increase in the
discount rate to 2.92%, a loss of $0.1 million associated with the industry updates to the mortality table used and a loss of $0.3 million
due to demographic changes. Asset performance exceeding the 6.50% rate of return assumption had a negligible effect on the unfunded
obligation. There is no prior service cost to be amortized in the future.

The Plan had accumulated benefit obligations in excess of Plan assets as follows:

2021 2020
Accumulated benefit obligation $ 41,410 $ 42,582
Fair market value of assets 37,757 36,756

Weighted-average assumptions used to determine benefit obligations at December 31: 2021 2020
Discount rate 2.92% 2.69%
Rate of compensation increase n/a n/a

Weighted -average assumptions used to determine net periodic benefit cost at

December 31: 2021 2020 2019
Discount rate 2.69% 3.50% 3.50%
Rate of compensation increase n/a n/a n/a
Expected long-term return on plan assets 6.50% 7.00% 7.00%

The net periodic pension cost for 2021 was based on a long-term asset rate-of-return of 6.50%. This rate is based upon
management’s estimate of future long-term rates of return on similar assets and is consistent with historical returns on such assets.

At December 31, 2021 and 2020, the Plan’s pooled investment funds were measured at fair value using the net asset value
("NAV"). The NAV is based on the value of the assets owned by the plan, less liabilities. These pooled assets are not quoted on an
active exchange. The fair value of the Plan assets at December 31, 2021 and 2020 was $37.8 million and $36.8 million, respectively.

The Plan weighted-average asset allocations at December 31, 2021 and 2020, by asset category, are as follows:

Plan assets
at December 31
2021 2020
Asset category
Equity securities 49 % 47 %
Debt securities 51 53
100% 100 %

Management seeks to maximize the long-term total return of financial assets consistent with the fiduciary standards of ERISA.
The ability to achieve these returns is dependent upon the need to accept moderate risk to achieve long-term capital appreciation.

In recognition of the expected returns and volatility from financial assets, Plan assets are invested in the following ranges with the
target allocation noted:

Range Target
Equities 40-60% 50%
Fixed Income 40-60% 50%
Cash Equivalents 0-10% 0%

Investment in these markets is projected to provide performance consistent with expected long-term returns with appropriate
diversification.

The Company's policy is to fund amounts deductible for federal income tax purposes. The Company is currently evaluating the
option to contribute to the Plan in 2022.

41
 The benefits expected to be paid out of the Plan assets in each of the next five years and the aggregate benefits expected to be paid
for the subsequent five years are as follows:

Year Pension Benefits

2022 $ 1,385
2023 1,467
2024 1,550
2025 1,624
2026 1,690
2027-2031 9,728

The Company also provides retirement benefits through various defined contribution plans including PLP-USA’s Profit Sharing
Plan. Expense for these defined contribution plans was $5.8 million in 2021, $5.9 million in 2020 and $4.9 million in 2019.

Further, the Company also provides retirement benefits through the Supplemental Profit Sharing Plan. To the extent an
employee’s award under PLP-USA’s Profit Sharing Plan exceeds the maximum allowable contribution permitted under existing tax
laws, the excess is accrued for (but not funded) under a non-qualified Supplemental Profit Sharing Plan. The Supplemental Profit
Sharing Plan allows participants the ability to hypothetically invest their proportionate award into various investment options, which
primarily includes mutual funds. Expense for the Supplemental Profit Sharing Plan was $0.9 million for the year ended December 31,
2021 and $1.1 million for both years ended December 31, 2020 and 2019. The Supplemental Profit Sharing Plan unfunded status for
the years ended December 31, 2021 and 2020 was $8.0 million and $7.1 million, respectively, and is included in Other noncurrent
liabilities.

Note D - Accumulated Other Comprehensive Income (“AOCI”)

The following tables set forth the total changes in AOCI by component, net of tax:

Year Ended December 31, 2021 Year Ended December 31, 2020
Cumulative Cumulative
Unrecognized Translation Unrecognized Translation
Benefit Cost Adjustment Total Benefit Cost Adjustment Total
Balance at January 1 $ (6,704) $ (47,847) $ (54,551) $ (5,671) $ (51,682) $ (57,353)
Other comprehensive income before reclassifications:
(Loss) gain on foreign currency translation adjustment 0 (8,376) (8,376) 0 3,835 3,835
Gain (loss) on unfunded pension obligations 739 0 739 (1,396) 0 (1,396)

Amounts reclassified from AOCI:

Amortization of defined benefit pension actuarial
loss (a) 469 0 469 363 0 363

Net current period other comprehensive income (loss) 1,208 (8,376) (7,168) (1,033) 3,835 2,802
Balance at December 31 $ (5,496) $ (56,223) $ (61,719) $ (6,704) $ (47,847) $ (54,551)

(a) This AOCI component is included in the computation of net periodic pension costs as noted in Note C – Pension Plans.

42
Note E - Debt and Credit Arrangements

December 31
2021 2020
Short-term debt
Notes payable to banks
Thailand Bhat denominated at 3.54% 1,551 5,291
Thailand Bhat denominated at 2.72% 1,346 2,384
Thailand Bhat denominated at 2.97% 635 957
France Euro denominated at 2.50% 5,660 6,142
Brazil Real denominated at 5.40% 791 1,854
Brazil Real denominated at 3.05% 1,600 800
Brazil Real denominated at 7.47% 1,575 0
China Yuan Renminbi denominated at 2.78% 2,000 0
China Yuan Renminbi denominated at 4.50% 1,205 0
Austria Euro denominated at 2.76% 60 0
Current portion of long-term debt
U.S. Dollar denominated at 2.74% 2,050 0
Austria Euro denominated at 2.48% 10 25
Austria Euro denominated at 3.00% 23 22
Indonesia U.S. Dollar denominated at 3.50% 800 800
New Zealand Dollar denominated at 3.65% 212 4,369
Brazil Real denominated at 4.60% 21 0
Total short-term debt 19,539 22,644

Long-term debt
U.S. Dollar denominated at 1.21%, due 2024 3,353 12,706
U.S. Dollar denominated at 2.74%, due 2026 18,790 0
Brazilian Real denominated at 4.60% due 2022 21 68
Brazilian Real denominated at 8.30% due 2025 1,800 1,800
Poland Zloty denominated at 2.46% due 2024 6,105 6,696
Australian Dollar denominated at 2.98%, due 2024 2,353 5,288
Austria Euro denominated at 2.48% due 2022 10 25
Austria Euro denominated at 2.32% due 2030 118 128
Austria Euro denominated at 2.76% due 2021 0 67
Austria Euro denominated at 1.22% due 2024 1,415 614
Austria Euro denominated at 3.00% due 2025 114 121
Indonesia U.S. Dollar denominated at 3.50% due 2024 5,867 6,667
New Zealand Dollar denominated at 3.25% due 2021 0 4,369
New Zealand Dollar denominated at 3.65% due 2024 3,218 0
Total long-term debt 43,164 38,549
Less current portion (3,116) (5,216)
Total long-term debt, less current portion 40,048 33,333
Total debt $ 59,587 $ 55,977

On January 19, 2021, the Company received funding for a term loan from PNC Equipment Finance, LLC in the principal amount
of $20.5 million to fund the purchase of a corporate aircraft. In September 2020, the Company made a deposit of $6.8 million toward
the purchase of the aircraft which was subsequently refunded in January 2021 and the full amount of the $20.5 million purchase price
was drawn on the loan. The aircraft replaces the Company’s previously owned aircraft, which was sold in December 2020. The proceeds
of the sale were used to pay off the debt associated with the previously-owned aircraft. The term of the new loan is 120 months at a
fixed interest rate of 2.744%. The loan is payable in 119 equal monthly installments, which commenced on March 1, 2021 with a final
payment of any outstanding principal and accrued interest due and payable on the final monthly payment date. Of the $18.8 million
outstanding on this debt facility at December 31, 2021, $2.1 million was classified as current. The loan is secured by the aircraft.

On April 17, 2020, the Company extended the term on its $65.0 million Credit Facility ("the Facility") from June 30, 2021 to June
30, 2024 and added its Austrian subsidiary as a borrower on the Facility. All other terms remain the same, including the interest rate at
LIBOR plus 1.125% unless the Company’s funded debt to Earnings before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at
which point the LIBOR spread becomes 1.500%. At December 31, 2021, the Company had the following borrowings on the $65.0
million Facility; the U.S. borrowed $3.4 million at 1.205%, the Company’s Polish subsidiary borrowed $6.1 million at 2.455%, the

43
Company’s Australian subsidiary borrowed $2.4 million at 2.980% and the Company’s Austrian subsidiary borrowed $1.4 million at
1.216%. Under the Facility, at December 31, 2021, the Company had utilized $13.3 million with $51.7 million available, net of long-
term outstanding letters of credit of $0.1 million. Our bank debt to equity percentage was 18.8%. The Facility agreement contains,
among other provisions, requirements for maintaining levels of net worth and profitability. At December 31, 2021, the Company was in
compliance with these covenants.

On April 25, 2019, the Company borrowed $8.0 million U.S. dollars on behalf of its Indonesian subsidiary at a rate of 3.501%
with a term expiring on April 30, 2024. At December 31, 2021, $5.9 million was outstanding on this debt facility, of which $0.8 million
is classified as current.

On August 16, 2021, the Company's New Zealand subsidiary extended the term of its $3.8 million debt facility from August 26,
2021 to August 26, 2024. All other terms remain the same, including the interest rate of 3.650%. Of the $3.2 million outstanding on
this debt facility at December 31, 2021, $0.2 million is classified as current. This loan is secured by the Company's New Zealand
subsidiary's land and building.

The Company’s Asia Pacific segment had $0.2 million and $0.6 million in restricted cash at December 31, 2021 and 2020,
respectively. The restricted cash was used to secure bank debt and is included in Cash and cash equivalents and Other current assets on
the Company’s Consolidated Balance Sheets at December 31, 2021 and 2020, respectively.

Aggregate maturities of long-term debt during the next five years are as follows: $3.1 million for 2022, $3.1 million for 2023,
$16.3 million for 2024, $4.9 million for 2025 and $15.8 million thereafter.

Interest paid was $1.6 million in 2021, $1.9 million in 2020 and $2.0 million in 2019.

Guarantees and Letters of Credit

The Company has provided financial guarantees for uncompleted work and financial commitments. The terms of these guarantees
vary with end dates ranging from the current year through the completion of such transactions. The guarantees would typically be
triggered in the event of non-performance. As of December 31, 2021, the Company had total outstanding guarantees of $10.0 million.
Additionally, certain domestic and foreign customers require the Company to issue letters of credit or performance bonds as a condition
of placing an order. As of December 31, 2021, the Company had total outstanding letters of credit of $2.2 million.

Note F - Leases
The Company regularly enters into leases in the normal course of business. As of December 31, 2021, the leases in effect were
related to land, buildings, vehicles, office equipment and other production equipment under operating leases with lease terms of up to
99 years. The Company often has the option to renew lease terms for buildings and other assets. The exercise of lease renewal options
is generally at the Company’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration
date at the Company’s discretion.

The Company evaluates renewal and termination options at the lease commencement date to determine if the Company is
reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for the Company’s
operating and financing leases as of December 31, 2021 was 18.4 and 3.0 years, respectively.

Lease expense is recognized for these leases on a straight-line basis over the lease term with variable lease payments recognized
in the period those payments are incurred. The components of operating and finance lease costs are recognized in Costs and expenses
and Interest expense, respectively, on the Company’s Consolidated Statements of Income. The Company’s operating and finance lease
costs for the years ended December 31, 2021 and 2020 were as follows:

Year Ended December 31

2021 2020
Components of lease expense
Operating lease cost $ 2,870 $ 2,957

Finance lease cost

Amortization of right-of-use assets 388 66
Interest on lease liabilities 13 9
Total lease cost $ 3,271 $ 3,032

44
 The discount rate implicit within each lease is often not determinable and, therefore, the Company establishes the discount rate
based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term
and currency in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure
the Company’s operating and finance lease liabilities as of December 31, 2021 was 4.96% and 4.21%, respectively. The weighted
average discount rate used to measure the Company’s operating and finance lease liabilities as of December 31, 2020 was 4.46% and
4.33%, respectively.

Future maturities of the Company’s lease liabilities as of December 31, 2021 are as follows:
Year Ended December 31, 2021
Operating Leases Finance Leases
2022 $ 2,448 $ 267
2023 1,762 146
2024 1,019 100
2025 883 82
2026 and thereafter 9,713 20
Total lease payments $ 15,825 $ 615
Less amount of lease payment representing interest 5,685 6
Total present value of lease payments $ 10,140 $ 609

Amounts recognized as finance lease obligations are reported in Accrued expense and other liabilities and Other noncurrent
liabilities in the Consolidated Balance sheets.

The Company received sublease income of $1.0 million for both years ended December 31, 2021 and 2020. The total minimum
sublease rentals under noncancelable subleases to be received through 2023 is $1.6 million.

Supplemental cash flow information related to leases for the years ended December 31, 2021 and 2020 was as follows:
Year Ended December 31
2021 2020
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 2,608 $ 2,793
Operating cash flows from finance leases 13 9
Financing cash flows from finance leases 375 118

Note G - Income Taxes

The Company recorded net tax provisions of $13.2 million, $10.8 million, and $8.1 million for the years ended December 31,
2021, 2020, and 2019, respectively. Cash taxes paid, net of refunds, were $16.9 million, $7.7 million, and $7.8 million for the years
ending December 31, 2021, 2020, and 2019, respectively. The 2021 payment includes a $5.0 million extension payment during the year
ended December 31, 2021 which was related to the 2020 tax return.

Income before income taxes was derived from the following sources:

2021 2020 2019

United States $ 32,570 $ 22,725 $ 11,353
Foreign 16,326 17,846 20,105
$ 48,896 $ 40,571 $ 31,458

45
 The components of income taxes for the years ended December 31 are as follows:

2021 2020 2019

Current
Federal $ 649 $ 7,909 $ 2,835
Foreign 5,065 5,093 6,170
State and local 917 1,188 391
6,631 14,190 9,396
Deferred
Federal 7,172 (2,290) (10)
Foreign (75) (445) (1,347)
State and local (553) (645) 83
6,544 (3,380) (1,274)
Income taxes $ 13,175 $ 10,810 $ 8,122

The differences between the provision for income taxes at the U.S. federal statutory rate and the tax shown in the Statements of
Consolidated Income for the years ended December 31 are summarized as follows:

2021 2020 2019

U. S. federal statutory tax rate 21.0% 21.0% 21.0%

Federal tax at statutory rate $ 10,268 $ 8,520 $ 6,606

State and local taxes, net of federal benefit 721 942 308
Non-deductible officers' compensation 763 1,161 1,005
Other U.S. federal permanent items 35 162 (384)
Global intangible low-taxed income 770 1,222 1,738
Foreign tax credits (1,222) (1,204) (1,422)
Non-U.S. tax rate variances 2,936 1,330 929
Valuation allowance (738) (245) (346)
Tax credits (807) (349) (464)
Other, net 449 (729) 152
$ 13,175 $ 10,810 $ 8,122

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the
tax basis of assets and liabilities and their carrying value for financial statement purposes. The tax effects of temporary differences that
give rise to the Company’s deferred tax assets and liabilities at December 31 are as follows:

2021 2020
Deferred tax assets:
Accrued compensation and benefits $ 1,175 $ 1,518
Inventory valuation reserves 2,504 2,535
Allowance for credit losses 663 480
Benefit plan reserves 7,048 7,564
Net operating loss carryforwards 2,383 1,851
Foreign tax credit 543 0
Other accrued expenses 2,453 3,825
Unrealized foreign exchange 213 799
Other 0 284
Gross deferred tax assets 16,982 18,856
Valuation allowance (1,932) (2,912)
Net deferred tax assets 15,050 15,944

Deferred tax liabilities:

Depreciation and other basis differences (11,023) (4,514)
Intangibles (2,594) (3,419)
Other (404) (69)
Deferred tax liabilities (14,021) (8,002)
Net deferred tax assets $ 1,029 $ 7,942

46
 2021 2020
Change in net deferred tax assets:
Deferred income tax expense
Ordinary movement $ (6,544) $ 3,380
Items of other comprehensive (loss) income (371) 319
Currency translation 2 (205)
Total change in net deferred tax assets $ (6,913) $ 3,494

Deferred taxes are recorded at a rate at which such items are expected to reverse based on currently enacted tax rates for temporary
differences between the financial reporting and income tax basis of assets and liabilities and operating loss and tax credit carryforwards.

At December 31, 2021, the Company had $13.8 million of foreign net operating loss carryforwards of which $9.2 million has an
indefinite carryforward and $4.6 million will expire between the years 2024 and 2030.

The Company assesses the available positive and negative evidence to determine if it is more likely than not that sufficient future
taxable income will be generated to utilize the existing deferred tax assets by jurisdiction. Based on this evaluation, the Company has
established a valuation allowance of $1.9 million at December 31, 2021 in order to measure only the portion of the deferred tax asset
that is more likely than not to be realized. The net decrease in the valuation allowance during the year was $1.0 million, of which $0.7
million impacts the income tax provision and the remainder relates to currency translation.

The Company considers the majority of the earnings in our non-U.S. subsidiaries to be permanently reinvested and accordingly
did not record any associated deferred income taxes on such earnings. Accordingly, the Company intends to continue to invest
approximately $114.9 million of such earnings, as well as our capital in these subsidiaries, indefinitely outside of the U.S.

The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. As of December 31, 2021, with few
exceptions, the Company is no longer subject to U.S. federal examinations by tax authorities for years before 2017 and state, local or
foreign examinations by tax authorities for years before 2015.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits related to uncertain tax positions,
excluding interest and penalties, for the year ended December 31:

2021 2020 2019

Balance at January 1 $ 66 $ 118 $ 0
Additions for tax positions of prior years 0 0 118
Expiration of statutes of limitations (66) (52) 0
Balance at December 31 $ 0 $ 66 $ 118

The Company records accrued interest as well as penalties related to unrecognized tax benefits as part of the provision for income
taxes. During the year ended December 31, 2021, the remaining portion of the Company’s uncertain tax position which was $0.1 million
expired due to the statute of limitation taking effect. The Company had no significant activity with regard to unrecognized tax benefits.
The Company had less than $0.1 million of accrued interest and penalties as of December 31, 2021.

Note H - Share-Based Compensation

Long Term Incentive Plan of 2008 and 2016 Incentive Plan
The Company maintains an equity award program to give the Company a competitive advantage in attracting, retaining, and
motivating officers, employees and directors and to provide an incentive to those individuals to increase shareholder value through long-
term incentives directly linked to the Company’s performance. Under the Preformed Line Products Company Long Term Incentive
Plan of 2008 (the “LTIP”), certain employees, officers, and directors were eligible to receive awards of options, restricted shares and
restricted share units (RSUs). The total number of Company common shares reserved for awards under the LTIP was 900,000, of which
800,000 common shares were reserved for RSUs and 100,000 common shares were reserved for share options. The Preformed Line
Products Company 2016 Incentive Plan (the “Incentive Plan”) was put in place upon approval by the Company’s Shareholders at the
2016 Annual Meeting of Shareholders on May 10, 2016. No further awards will be made under the LTIP and previously granted awards
remain outstanding in accordance with their terms. Under the Incentive Plan, certain employees, officers, and directors will be eligible
to receive awards of options, restricted shares and RSUs. The total number of Company common shares reserved for awards under the
Incentive Plan is 1,000,000 of which 900,000 common shares have been reserved for restricted share awards and 100,000 common
shares have been reserved for share options. As of December 31, 2021, 43,500 options and 380,278 restricted shares have been granted
under the Incentive Plan. The Incentive Plan expires on May 10, 2026.

47
Restricted Share Units
For the regular annual grants, a portion of the RSUs is subject to time-based cliff vesting and a portion is subject to vesting based
upon the Company’s performance over a set period for all participants except the CEO. All of the CEO’s regular annual RSUs are
subject to vesting based upon the Company’s performance over a set-year period.

The RSUs are offered at no cost to the employees, however, the participant must remain employed with the Company until the
restrictions on the RSUs lapse. The fair value of RSUs is based on the market price of a common share on the grant date. Dividends
declared are accrued.

A summary of the RSUs for the year ended December 31, 2021 is as follows:

Restricted Share Awards

Performance Total Weighted-Average
and Service Service Restricted Grant-Date
Required (1) Required Awards Fair Value
Nonvested as of January 1, 2021 183,777 15,786 199,563 $ 60.33
Granted 51,308 12,285 63,593 71.84
Vested (56,973) (7,198) (64,171) 71.77
Forfeited (5,145) (1,286) (6,431) 54.55
Nonvested as of December 31, 2021 172,967 19,587 192,554 $ 60.34

(1) Nonvested, performance-based RSU's are reflected above at the maximum performance achievement level.

For time-based RSUs, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite
service period of the award in General and administrative expense in the accompanying Statements of Consolidated Income. Annual
compensation expense related to the time-based RSUs for the years ended December 31, 2021, 2020 and 2019 was $0.5 million, $0.4
million and $0.5 million, respectively. During the year ended December 31, 2021, a former Officer of the Company forfeited 1,286
time-based RSUs that were granted during 2020 and 2019. As of December 31, 2021, there was $0.7 million of total unrecognized
compensation cost related to time-based RSUs that is expected to be recognized over the weighted-average remaining period of
approximately 1.8 years.

For the performance-based RSUs, the number of RSUs in which the participants will vest depends on the Company’s level of
performance measured by growth in pre-tax income and sales growth over a requisite performance period. Depending on the extent to
which the performance criteria are satisfied under the LTIP, the participants are eligible to earn common shares over the vesting period.
Performance-based compensation expense for the years ended December 31, 2021, 2020 and 2019 was $3.4 million, $3.5 million and
$3.9 million, respectively. During the year ended December 31, 2021, a former Officer of the Company forfeited 5,145 performance-
based RSUs that were granted during 2020 and 2019. As of December 31, 2021, the remaining performance-based RSUs compensation
expense of $3.7 million is expected to be recognized over a period of approximately 1.7 years.

The excess tax benefits from service and performance-based RSUs was $0.2 million, $0.4 million and $0.5 million for the years
ended December 31, 2021, 2020 and 2019, respectively. This represents the reduction in income taxes otherwise payable during the
period attributable to the actual gross tax benefits in excess of the expected tax benefits for restricted shares vested in the current period.

In the event of a Change in Control (as defined in the LTIP and Incentive Plan), vesting of the RSUs will be accelerated and all
restrictions will lapse. Nonvested performance-based awards are based on a maximum target potential payout. Actual shares awarded
at the end of the performance period may be less than the maximum potential payout level depending on achievement of performance-
based award objectives.

To satisfy the vesting of its RSUs, the Company has reserved new shares from its authorized but unissued shares. Any additional
granted awards will also be issued from the Company’s authorized but unissued shares.

Deferred Compensation Plan

The Company maintains a trust, commonly referred to as a rabbi trust, in connection with the Company’s deferred compensation
plan. This plan allows for two deferrals. First, Directors make elective deferrals of Director fees payable and held in the rabbi trust.
The deferred compensation plan allows the Directors to elect to receive Director fees in common shares of the Company at a later date
instead of fees paid each quarter in cash. Second, this plan allows certain Company employees to defer restricted shares or RSUs for
future distribution in the form of common shares. Assets of the rabbi trust are consolidated, and the value of the Company’s stock held
in the rabbi trust is classified in Shareholders’ equity and generally accounted for in a manner similar to treasury stock. The Company
recognizes the original amount of the deferred compensation (fair value of the deferred stock award at the date of grant) as the basis for
recognition in common shares issued to the rabbi trust. Changes in the fair value of amounts owed to certain employees or Directors

48
are not recognized as the Company’s deferred compensation plan does not permit diversification and must be settled by the delivery of
a fixed number of the Company’s common shares. As of December 31, 2021, 243,138 LTIP shares have been deferred and are being
held by the rabbi trust.

Share Option Awards

The LTIP permitted and now the Incentive Plan permits the grant of 100,000 options to buy common shares of the Company to
certain employees at not less than fair market value of the shares on the date of grant. Options issued to date under the LTIP and Incentive
Plan vest 50% after one year following the date of the grant, 75% after two years, and 100% after three years and expire from five to
ten years from the date of grant. Shares issued as a result of stock option exercises will be funded with the issuance of new shares.

The Company utilizes the Black-Scholes option pricing model for estimating fair values of options. The Black-Scholes model
requires assumptions regarding the volatility of the Company’s stock, the expected life of the stock award and the Company’s dividend
yield. The Company utilizes historical data in determining these assumptions. The risk-free rate for periods within the contractual life
of the option is based on the U.S. zero coupon Treasury yield in effect at the time of grant. Forfeitures have been estimated to be zero.

There were 3,000 options granted during the year ended December 31, 2021 and 25,500 and 5,000 options granted in the years
ended December 31, 2020 and 2019, respectively. The fair values for the stock options granted were estimated at the date of grant using
the Black-Scholes option-pricing model with the following weighted-average assumptions:

2021 2020 2019

Risk-free interest rate 1.1% 1.8% 1.8%
Dividend yield 1.4% 1.6% 1.6%
Expected life (years) 5 5 5
Expected volatility 39.7% 42.0% 42.0%

Activity in the Company’s LTIP and Incentive Plan for the year ended December 31, 2021 was as follows:

Weighted
Weighted Average
Average Remaining Aggregate
Number of Exercise Price Contractual Intrinsic
Shares per Share Term (Years) Value
Outstanding at January 1, 2021 50,950 $ 54.81
Granted 3,000 $ 69.89
Exercised (7,000) $ 47.66
Forfeited 0 -
Outstanding (vested and expected to vest) at
December 31, 2021 46,950 $ 56.84 6.4 $ 454
Exercisable at December 31, 2021 29,950 $ 57.39 5.2 $ 325

The weighted-average grant-date fair value of options granted during 2021 was $69.89. There were 7,000, 5,050, and 4,000 stock
options exercised during the years ended December 31, 2021, 2020 and 2019, respectively. The total intrinsic value of stock options
exercised was $0.2 million, $0.1 million for both years ended December 31, 2021 and 2020 and less than $0.1 million for the year
December 31, 2019. Cash received for the exercise of stock options during the year ended December 31, 2021 was $0.3 million and
$0.2 million during both years ended December 31, 2021 and 2020.

The Company recorded compensation expense related to the stock options currently vested of $0.2 million, $0.1 million and less
than $0.1 million during the years ended December 31, 2021, 2020 and 2019, respectively. The total compensation cost related to
nonvested awards not yet recognized at December 31, 2021 is expected to be $0.2 million over a weighted-average period of
approximately 1.6 years.

The excess tax benefits from share-based awards for each of the years ended December 31, 2021, 2020 and 2019 was less than
$0.1 million. This represents the reduction in income taxes otherwise payable during the period attributable to the actual gross tax
benefits in excess of the expected tax benefits for options exercised in the current period.

49
Note I - Computation of Earnings Per Share
Basic earnings per share were computed by dividing net income by the weighted-average number of common shares outstanding
for each respective period. Diluted earnings per share were calculated by dividing net income by the weighted-average of all potentially
dilutive common shares that were outstanding during the years presented.

The calculation of basic and diluted earnings per share for the year ended December 31 was are as follows:

2021 2020 2019

Numerator
Net income $ 35,729 $ 29,803 $ 23,303

Denominator
Determination of shares (in thousands)
Weighted-average common shares outstanding 4,907 4,923 5,031
Dilutive effect - share-based awards 63 61 56
Diluted weighted-average common shares outstanding 4,970 4,984 5,087

Earnings per common share

Basic $ 7.28 $ 6.05 $ 4.63

Diluted $ 7.19 $ 5.98 $ 4.58

For the year ended December 31, 2021, 2020 and 2019, 13,000, 37,919 and 15,041 stock options, respectively, were excluded
from the calculation of diluted earnings per share as the effect would have been anti-dilutive.

Note J - Goodwill and Other Intangibles

The Company’s finite and indefinite-lived intangible assets consist of the following:

December 31, 2021 December 31, 2020

Gross Carrying Accumulated Gross Carrying Accumulated
Amount Amortization Amount Amortization
Finite-lived intangible assets
Patents $ 4,806 $ (4,806) $ 4,806 $ (4,806)
Land use rights 1,293 (437) 1,286 (396)
Trademark 1,837 (1,533) 1,756 (1,474)
Technology 7,306 (2,830) 7,673 (2,402)
Customer relationships 15,046 (8,643) 16,441 (8,441)
$ 30,288 $ (18,249) $ 31,962 $ (17,519)
Indefinite-lived intangible assets
Goodwill $ 28,194 $ 29,508

The aggregate amortization expense for other intangibles with finite lives, ranging from 4 to 82 years, for the years ended
December 31, 2021, 2020 and 2019 was $1.9 million, $1.8 million and $1.5 million, respectively. Amortization expense is estimated
to be $1.7 million for 2022, $1.6 million for 2023 and 2024, $1.4 million for 2025 and $1.3 million for 2026. The weighted-average
remaining amortization period is approximately 11.8 years. The weighted-average remaining amortization period by intangible asset
class; land use rights, 54.4 years; trademark, 6.6 years; technology, 9.1 years and customer relationships, 8.6 years.

Goodwill and other intangible assets are generally recoded as a result of a business acquisition. Goodwill represents the excess of
purchase price over the fair value of the tangible and identifiable net assets acquired during a business combination and is not subject to
amortization but is subject to annual impairment testing. Intangible assets with definite lives, consisting primarily of purchased customer
relationships, patents, technology, customer backlogs, trademarks and land use rights, are generally amortized over periods from four
years to eighty-two years. The Company’s intangible assets with finite lives are generally amortized over the period in which the
economic benefits of the intangibles are consumed, using either a projected cash flow basis method or the straight-line method. The
straight-line method is used in circumstances in which it better reflects the pattern in which the economic benefits of the intangible asset
are consumed or otherwise expire compared to using a projected cash flow basis method. An evaluation of the remaining useful life of
intangible assets with a determinable life is performed on a periodic basis and when events and circumstances warrant an evaluation.
The Company assesses intangible assets with a determinable life for impairment consistent with its policy for assessing other long-lived
assets. Goodwill and intangible assets are also reviewed for impairment annually in the fourth quarter or more frequently when changes

50
in circumstances indicate the carrying amount may be impaired, or in the case of finite-lived intangible assets, when the carrying amount
may not be recoverable. Such events or changes may include, but are not limited to, a significant deterioration in overall economic
conditions, changes in the business climate of the Company's industry, overall performance indicators, a decline in the Company's
market capitalization, business reorganization or restructuring or disposal of all or part of a reporting unit. Impairment charges are
recognized pursuant to FASB ASC 350-20, “Goodwill.”

The Company's goodwill is tested for impairment at a level referred to as the reporting unit. The level at which goodwill is tested
for impairment indicates whether the operations within the reporting unit constitute a self-sustaining business.

The Company may use both quantitative and qualitative approaches when testing goodwill for impairment. For selected reporting
units where the qualitative approach is utilized, a qualitative evaluation of events and circumstances impacting the reporting unit is
performed to determine if it is more likely than not that the fair value of the reporting unit exceeds its carrying amount. If that
determination is made, no further evaluation is necessary. Otherwise, the Company performs a quantitative impairment test on the
reporting unit.

For the quantitative approach, the Company uses a combination of the income approach, which uses a discounted cash flow
methodology, and the market approach, which uses comparable market multiples in computing fair value by reporting unit. The
Company then compares the fair value of the reporting unit with its carrying value to assess if goodwill has been impaired. The fair
value estimates are subjective and sensitive to significant assumptions, such as revenue growth rates, operating margins, the weighted-
average cost of capital ("WACC"), and estimated market multiples, of which are affected by expectations of future market or economic
conditions. The Company believes that the methodologies, significant assumptions, and weightings used are reasonable and result in
appropriate fair values of the reporting units.

Given the continued decline in the Company’s results in the Asia-Pacific region and the uncertainty surrounding COVID-19,
including the lingering impacts of the Delta variant, the Company concluded that an indicator of impairment was present and conducted
an interim quantitative impairment review of its goodwill in the Asia-Pacific reporting unit as of September 30, 2021. The Company
reassessed its previous forecasts for this reporting unit which predicted increased sales levels in the second half of 2021. However, actual
results were lower than forecast due to extended lockdowns and the postponement of projects within the region. The interim impairment
assessment was performed utilizing the same methodologies as the annual assessments discussed above and included revised projections,
which are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows. Based on the interim
impairment assessment and annual assessment at October 1, 2021, the Asia-Pacific reporting unit’s fair value exceeded its carrying
value by approximately 10% as compared to 15% as of October 1, 2020. No indicators of impairment were identified for the Company's
other reporting units.

The Company re-evaluated the results of its Asia-Pacific region at December 31, 2021 and did not identify additional impairment
indicators. The Company will continue to evaluate the results of its Asia-Pacific region and conduct interim testing if additional
impairment indicators are present in future quarters. At December 31, 2021, the Asia-Pacific reporting unit's goodwill was $7.3 million.

The qualitative goodwill impairment test approach was used on the Company's remaining reporting units and there was no
evidence that the fair value of each reporting unit would not exceed its carrying value at the October 1, 2021 measurement date. As
such, no impairment was recorded at the measurement date. Total combined goodwill for the remaining reporting units was $21.3
million as shown in the following table:

USA The Americas EMEA Asia-Pacific Total

Balance at January 1, 2020 $ 3,078 $ 4,158 $ 13,442 $ 7,162 $ 27,840

Currency translation 0 93 1,007 568 1,668
Balance at December 31, 2020 3,078 4,251 14,449 7,730 29,508
Currency translation 0 (7) (888) (419) (1,314)
Balance at December 31, 2021 $ 3,078 $ 4,244 $ 13,561 $ 7,311 $ 28,194

Impairment assessments inherently involve management judgments regarding a number of assumptions such as those described
above. Due to the multiple variables inherent in arriving at the estimates of the reporting unit's fair value, differences in assumptions
could have an effect on the estimated fair value of a reporting unit and could result in goodwill impairment charges in a future period.

The Company’s only intangible asset with an indefinite life is goodwill. The Company’s goodwill is not deductible for tax
purposes.

51
Note K - Fair Value of Financial Assets and Liabilities
The Company measures and records certain assets and liabilities at fair value. A fair value hierarchy is used for those assets and
liabilities measured at fair value that distinguishes between assumptions based on market data (observable inputs), and the Company’s
assumptions (unobservable inputs). The hierarchy consists of the following three levels:

Level 1 Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 Inputs other than Level 1 inputs that are either directly or indirectly observable, which may include:
 Quoted prices for similar assets in active markets;
 Quoted prices for identical or similar assets or liabilities in inactive markets;
 Inputs other than quoted prices that are observable for the asset or liability; and
 Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 Inputs to the valuation methodology are unobservable and developed using estimates and assumptions developed by the
Company which reflect those that a market participant would use.

The following table summarizes the Company’s assets and liabilities, recorded and measured at fair value, in the consolidated
balance sheets as of December 31, 2021 and 2020:

Quoted Prices in
Active Markets for
Balance as of Identical Assets or Significant Other Significant
December 31, Liabilities Observable Inputs Unobservable Inputs
Description 2021 (Level 1) (Level 2) (Level 3)
Assets:
Foreign currency forward contracts $ 534 $ 0 $ 534 $ 0
Total Assets $ 534 $ 0 $ 534 $ 0

Liabilities:
Supplemental profit sharing plan $ 8,015 $ 0 $ 8,015 $ 0
Total Liabilities $ 8,015 $ 0 $ 8,015 $ 0

Quoted Prices in
Active Markets for
Balance as of Identical Assets or Significant Other Significant
December 31, Liabilities Observable Inputs Unobservable Inputs
Description 2020 (Level 1) (Level 2) (Level 3)
Assets:
Foreign currency forward contracts $ 359 $ 0 $ 359 $ 0
Total Assets $ 359 $ 0 $ 359 $ 0

Liabilities:
Supplemental profit sharing plan $ 7,143 $ 0 $ 7,143 $ 0
Foreign currency forward contracts 56 0 56 0
Total Liabilities $ 7,199 $ 0 $ 7,199 $ 0

The Company operates internationally and enters into intercompany transactions denominated in foreign currencies.
Consequently, the Company is subject to market risk arising from exchange rate movements between the dates foreign currency
transactions occur and the dates they are settled. The Company currently uses foreign currency forward contracts to reduce the risk
related to some of these transactions. These contracts usually have maturities of 90 days or less and generally require an exchange of
foreign currencies for U.S. dollars at maturity at rates stated in the contracts. These contracts are not designated as hedging instruments
under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting
period in “Other operating expense - net” on the Consolidated Statements of Income together with the transaction gain or loss from the
related balance sheet position. For the twelve months ended December 31, 2021 and 2020, the Company recognized a net loss of $0.7
million and gain of $0.4 million, respectively, on foreign currency forward contracts. The gains and losses on foreign currency forward
contracts are recorded in Other operating expense, net on the Company’s Statement of Consolidated Income.

The Company has a non-qualified Supplemental Profit Sharing Plan for its executives. The liability for this unfunded
Supplemental Profit Sharing Plan was $8.0 million at December 31, 2021 and $7.1 million at December 31, 2020. These amounts are

52
recorded within Other noncurrent liabilities on the Company’s Consolidated Balance Sheets. The Supplemental Profit Sharing Plan
allows participants the ability to hypothetically invest their proportionate award into various investment options, which primarily
includes mutual funds. The Company credits earnings, gains and losses to the participants’ deferred compensation account balances
based on the investments selected by the participants. The Company measures the fair value of the Supplemental Profit Sharing Plan
liability using the market values of the participants’ underlying investment accounts.

The carrying value of the Company’s current financial instruments, which include cash, cash equivalents and restricted cash,
accounts receivable, accounts payable and short-term debt, approximates fair value because of the short-term maturity of these
instruments.

At December 31, 2021, the fair value of the Company’s long-term debt was estimated using discounted cash flows analysis, based
on the Company’s current incremental borrowing rates for similar types of borrowing arrangements that are considered to be Level 2
inputs. Based on the analysis performed, the fair value and the carrying value of the Company’s long-term debt are as follows:

December 31, 2021 December 31, 2020

Fair Value Carrying Value Fair Value Carrying Value
Long-term debt and related current maturities $ 46,577 $ 43,164 $ 38,726 $ 38,549

Note L - Revenue
Revenue recognition
Sales are recognized when obligations under the terms of the contract are satisfied and control of promised goods or services have
transferred to our customers. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the
goods or services and is primarily based on shipping terms. Sales are measured as the amount of consideration the Company expects to
receive in exchange for transferring products.

Net sales include products and shipping and handling charges, net of estimates for product returns. The Company estimates product
returns based on historical return rates. Revenue for shipping and handling charges are recognized at the time the products are shipped
to, delivered to or picked up by the customer. Shipping and handling costs associated with outbound freight after control over a product
has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold.

Payment terms vary by the type and location of the customer and the products or services offered. Generally, the time between
when revenue is recognized, and payment is due is not significant. Sales, value added, and other taxes collected concurrent with revenue
are excluded from sales.

PLP records reductions to sales for returns, and customer and distributor incentives, primarily comprised of rebates, at the time of
the initial sale. Rebates are estimated based on sales terms, historical experience, trend analysis, and projected market conditions in the
various markets served.

Sales commissions are expensed when the amortization period is less than a year and are generally not capitalized as they are
typically earned at the completion of the contract when the customer is invoiced or when the customer pays PLP.

Sales of products and services varies by segment and are discussed in Note M, "Segment Information".

Disaggregated revenue
The Company’s revenues by segment and product type are as follows:

Year Ended December 31, 2021

Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated
Energy 57% 68% 55% 71% 61%
Communications 37% 29% 39% 3% 30%
Special Industries 6% 3% 6% 26% 9%
Total 100% 100% 100% 100% 100%

53
 Year Ended December 31, 2020
Product Type PLP-USA The Americas EMEA Asia-Pacific Consolidated
Energy 62% 78% 57% 70% 66%
Communications 32% 17% 36% 4% 24%
Special Industries 6% 5% 7% 26% 10%
Total 100% 100% 100% 100% 100%

Credit losses for receivables

The Company maintains an allowance for credit losses for estimated losses resulting from the inability of its customers to make
required payments. The Company uses a current expected credit loss model in order to immediately recognize an estimate of credit
losses that are expected to occur over the life of the financial instruments, mainly trade receivables. Additionally, the allowance is based
upon identified delinquent accounts, customer payment patterns and other analyses of historical data trends. Receivable balances are
written off against an allowance for credit losses after a final determination has been made. The change in the allowance for credit
losses includes expense and net write-offs, which are identified in the following table:

2021 2020 2019

Allowance for credit losses, beginning of period $ 2,848 $ 3,224 $ 2,652
Additions charged to costs and expenses 931 1,279 1,294
Write-offs (435) (1,527) (697)
Foreign exchange and other (253) (128) (25)
Allowance for credit losses, end of period $ 3,091 $ 2,848 $ 3,224

Note M - Segment Information

The Company designs, manufactures and sells hardware employed in the construction and maintenance of telecommunication,
energy and other utility networks, data communication products and mounting hardware for solar power applications. Principal products
include cable anchoring, control hardware and splice enclosures, which are sold primarily to customers in North and South America,
Europe, South Africa and Asia-Pacific.

The Company reports its segments in four geographic regions: PLP-USA, The Americas, EMEA (Europe, Middle East & Africa)
and Asia-Pacific in accordance with accounting standards codified in Financial Accounting Standards Board “FASB” Accounting
Standards Codification “ASC” 280, “Segment Reporting”. Each segment distributes a full range of the Company’s primary products.
The PLP-USA segment is comprised of U.S. operations manufacturing the Company’s traditional products primarily supporting
domestic energy, telecommunications and solar products. The other three segments, The Americas, EMEA and Asia-Pacific support
the Company’s energy, telecommunications, data communication and solar products in each respective geographical region.

The segment managers responsible for each region report directly to the Company’s Chief Executive Officer, who is the chief
operating decision maker and are accountable for the financial results and performance of their entire segment for which they are
responsible. The business components within each segment are managed to maximize the results of the entire company rather than the
results of any individual business component of the segment.

The amount of each segment’s performance reported to the chief operating decision maker is for purposes of making decisions
about allocating resources to the segment and assessing its performance. The Company evaluates segment performance and allocates
resources based on several factors primarily based on sales and income from continuing operations, net of tax.

The accounting policies of the operating segments are the same as those described in Note A in the Notes to Consolidated Financial
Statements. No single customer accounts for more than ten percent of the Company’s consolidated revenue. U.S. net sales for the years
ended December 31, 2021, 2020, and 2019 were $257.6 million, $201.2 million and $178.3 million, respectively. U.S. long-lived assets
as of December 31, 2021 and 2020 were $71.7 million and $44.2 million, respectively.

54
 The following table presents a summary of the Company’s reportable segments for the years ended December 31, 2021, 2020 and
2019. Financial results for the PLP-USA segment include the elimination of all segments’ intercompany profits in inventory.

Year Ended December 31

2021 2020 2019
Net sales
PLP-USA $ 257,602 $ 201,277 $ 178,301
The Americas 70,732 74,192 68,293
EMEA 95,922 91,108 79,158
Asia-Pacific 93,161 99,872 119,109
Total net sales $ 517,417 $ 466,449 $ 444,861

Intersegment sales
PLP-USA $ 6,176 $ 9,702 $ 10,757
The Americas 9,486 9,938 7,774
EMEA 2,784 3,682 1,375
Asia-Pacific 21,610 14,452 12,720
Total intersegment sales $ 40,056 $ 37,774 $ 32,626

Interest income
PLP-USA $ 0 $ 0 $ 0
The Americas 138 112 412
EMEA 4 67 192
Asia-Pacific 27 80 179
Total interest income $ 169 $ 259 $ 783

Interest expense
PLP-USA $ (665) $ (741) $ (972)
The Americas (368) (586) (466)
EMEA (309) (233) (149)
Asia-Pacific (681) (836) (630)
Total interest expense $ (2,023) $ (2,396) $ (2,217)

Income taxes
PLP-USA $ 8,185 $ 6,161 $ 3,299
The Americas 3,250 2,461 2,551
EMEA 1,492 1,768 616
Asia-Pacific 248 420 1,656
Total income taxes $ 13,175 $ 10,810 $ 8,122

Net income attributable to Preformed Line Products

Company shareholders
PLP-USA $ 24,384 $ 16,564 $ 8,054
The Americas 8,351 5,068 6,657
EMEA 3,715 6,644 2,935
Asia-Pacific (721) 1,527 5,657
Total net income $ 35,729 $ 29,803 $ 23,303

55
 Year Ended December 31
2021 2020 2019
Expenditure for long-lived assets
PLP-USA $ 12,750 $ 9,536 $ 4,928
The Americas 1,289 3,527 2,864
EMEA 2,785 3,007 5,304
Asia-Pacific 1,560 8,499 16,371
Total expenditures for long-lived assets $ 18,384 $ 24,569 $ 29,467

Depreciation and amortization

PLP-USA $ 6,195 $ 5,321 $ 5,393
The Americas 1,855 1,710 1,862
EMEA 3,146 2,797 2,528
Asia-Pacific 4,368 4,010 3,965
Total depreciation and amortization $ 15,564 $ 13,838 $ 13,748

As of December 31
2021 2020
Identifiable assets
PLP-USA $ 177,288 $ 137,689
The Americas 78,766 75,438
EMEA 106,929 106,922
Asia-Pacific 126,035 141,038
Total identifiable assets $ 489,018 $ 461,087

Long-lived assets
PLP-USA $ 71,726 $ 44,184
The Americas 15,663 16,507
EMEA 17,931 18,362
Asia-Pacific 44,454 46,912
Total long-lived assets $ 149,774 $ 125,965

Note N - Related Party Transactions

The Company’s Australian subsidiary previously utilized copper extrusion services from Cast Alloy. As of December 31, 2020,
the Company’s Australian subsidiary no longer utilized the copper extrusion services from Cast Alloy, therefore, there was no expense
recorded during that year or in the current year. During the year ended December 31, 2019, PLP-Australia incurred a total of $0.1
million for these expenses. Cast Alloy is owned by Simi Almasan, Continuous Improvement Engineer, a current PLP employee. The
Audit Committee of the Board of Directors approved these transactions.

The Company’s Austrian subsidiary currently has a loan due, carrying an interest rate of 3.0%, to one if its current employees
which is reflected on the Company’s balance sheet in the amount of $0.1 million. Interest incurred on this loan during the year ended
December 31, 2021 was negligible. This loan is due in December of 2025.

The Company’s Austrian subsidiary leases a portion of its Dornbirn, Austria location from a holding company owned by a current
employee. During each of the years ended December 31, 2021, 2020 and 2019, the Company paid $0.2 million in lease expenses. The
lease is valid for an indefinite period of time and can be terminated if the lessee and lessor provide a six-month notice at the end of any
chosen calendar year.

The Company’s Czech Republic subsidiary leases a factory at its Prostějov, Czech Republic location from a company currently
owned by two current employees. During the year ended December 31, 2021, the Company paid $0.3 million in lease expenses and
during each of the years ended December 31, 2020 and 2019, the Company paid $0.2 million in lease expenses. The lease term is for 5
years from its original effective date of April 1, 2019.

During each year of the years ended December 31, 2021, 2020 and 2019, the Company paid approximately $0.1 million in legal
fees to Baker & Hostetler LLP, of which R. Steven Kestner was the Chairman and the chair of its policy committee. Mr. Kestner is a
Director of the Company.

56
 On October 28, 2020, the Board of the Directors of the Company approved the appointment of David C. Sunkle to serve on its
Board of Directors effective upon his retirement at December 31, 2020 for a term commencing January 1, 2021 and ending when his
successor has been duly elected and qualified at the annual meeting of shareholders in 2022 or until his earlier resignation or removal.
In addition, Mr. Sunkle has a consulting agreement with the Company that expires on December 31, 2025.

Note O - Product Warranty Reserve

The Company records an accrual for estimated warranty costs to Costs of products sold in the Statements of Consolidated Income.
These amounts are recorded in Accrued expenses and other liabilities in the Consolidated Balance Sheets. The Company records and
accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty
claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments
are made quarterly to the accruals as claim information changes.

The following is a rollforward of the product warranty reserve:

2021 2020 2019

Balance at January 1 $ 1,282 $ 1,309 $ 928
Additions charged to costs and expenses 934 279 481
Warranty usage (553) (314) (317)
Currency translation (28) 8 217
Balance at December 31 $ 1,635 $ 1,282 $ 1,309

Note P - Subsequent Events

On January 2, 2022, Director Emeritus Barbara P. Ruhlman passed away at the age of 89. Barbara was member of the Company’s
Board of Directors from 1988 to 2016, at which time she elected to resign and was appointed as the Company’s Director Emeritus.
Barbara was the daughter of the Company’s founder, Thomas F. Peterson, and was the mother of the Company’s current Chief Executive
Officer, Robert G. Ruhlman. A Company-owned life insurance policy was maintained for Barbara until her death. At December 31,
2021, the cash surrender value was recorded in Other assets on the Company’s Consolidated Balance Sheets. The Company expects to
receive cash proceeds from the life insurance policy of approximately $7.0 million during the first quarter of 2022 and will be recorded
in the Company’s Consolidated Financial Statements upon receipt.

On January 4, 2022, the Company acquired all issued and outstanding shares of Maxxweld Conectores Eletricos Ltda.
("Maxxweld"), a Brazilian entity headquartered in Curitiba, Brazil, from its shareholders. Maxxweld designs and manufactures
substation connector systems and accessory hardware for high voltage AC systems. The acquisition of Maxxweld will expand and
strengthen the Company's operational and technical capabilities in the region while supporting its overall substation strategy. The
purchase price was approximately $11.2 million as of the closing date. The purchase price is subject to a holdback of approximately
$1.8 million. To fund the Maxxweld acquisition, the Company borrowed $11.2 million on the Facility.

On March 1, 2022, the Company acquired all issued and outstanding shares of Holplast, s.r.o (“Holplast”), an entity headquartered
in Prostejov, Czech Republic from its shareholder. Holplast specializes in injection molding and will expand the Company’s operational
capabilities in the region and strengthen the Company’s position in the global communications market. The purchase price was
approximately $5.3 million with a holdback of $0.8 million.

To fund the Holplast acquisition, the Company borrowed $4.4 million on its Facility. After the incremental borrowings to fund
both the Maxxweld and Holplast, the Company had total borrowings on the Facility of $35.1 million as of March 2, 2022.

On March 2, 2022, the Company amended its credit facility to increase the capacity from $65.0 million to $90.0 million. As part
of this amendment, the index used to determine the interest rate changed from LIBOR to the Bloomberg Short Term Bank Yield Index
(“BSBY”). The interest rate will now be defined as BSBY plus 1.125% unless the Company’s funded debt to Earnings before Interest,
Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the BSBY spread becomes 1.500%. The amendment also allows the
Company to change its rate from BSBY to the Secured Overnight Financing Rate (“SOFR”) at the Company’s discretion. The
amendment extended the maturity from June 30, 2024 to March 2, 2026. All other terms remain the same. The Company does not expect
this change in index to have a material impact on the Company’s consolidated financial statements.

57
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures
The Company’s Principal Executive Officer and Principal Financial Officer have concluded based on their review thereof that the
Company’s disclosure controls and procedures as defined in Rule 13a-15(e) or Rule 15d-15(e) of the Securities Exchange Act of 1934,
as amended, were effective as of December 31, 2021.

Management’s Report on Internal Control Over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company's internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of the
consolidated financial statements in accordance with generally accepted accounting principles.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements and even when
determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation.

Management, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, assessed the
effectiveness of the Company's internal control over financial reporting as of December 31, 2021. In making this assessment,
management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal
Control—Integrated Framework (2013).

Based upon its assessment, management concluded that the Company’s internal control over financial reporting was effective as
of December 31, 2021.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2021 has been audited by Ernst
& Young LLP, an independent registered public accounting firm, who expressed an unqualified opinion as stated in their report, a copy
of which is included below.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) and
15d-15(f)) during the quarter ended December 31, 2021 that materially affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting.

58
 Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

of Preformed Line Products Company

Opinion on Internal Control over Financial Reporting

We have audited Preformed Line Products Company’s internal control over financial reporting as of December 31, 2021, based on
criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) (the COSO criteria). In our opinion, Preformed Line Products (the Company) maintained, in all material
respects, effective internal control over financial reporting as of December 31, 2021, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the Consolidated Balance Sheets of the Company as of December 31, 2021 and 2020, the related Statements of Consolidated Income,
Comprehensive Income, Cash Flows, and Shareholders’ Equity for each of the three years in the period ended December 31, 2021, and
the related notes and financial statement schedule listed in the Index at Item 15(a) and our report dated March 4, 2022 expressed an
unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control
Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based
on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company
in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the
financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Cleveland, Ohio
March 4, 2022

59
Item 9B. Other Information
On March 2, 2022, the Company entered into an amendment to the Facility to increase the capacity from $65.0 million to $90.0
million. As part of this amendment, the index used to determine the interest rate changed from LIBOR to the Bloomberg Short Term
Bank Yield Index (“BSBY”). The interest rate will now be defined as BSBY plus 1.125% unless the Company’s funded debt to Earnings
before Interest, Taxes and Depreciation ratio exceeds 2.25 to 1, at which point the BSBY spread becomes 1.500%. The amendment also
allows the Company to change its rate from BSBY to the Secured Overnight Financing Rate (“SOFR”) at the Company’s discretion.
The amendment extended the maturity from June 30, 2024 to March 2, 2026. All other terms remain the same.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Require Inspections

None.

Part III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this Item 10 is incorporated by reference to the information under the captions “Corporate Governance
– Board Composition”, “Corporate Governance - Election of Directors”, “Section 16(a) Beneficial Ownership Compliance”, “Corporate
Governance – Code of Conduct” and “Corporate Governance – Board Committees and Meetings – Audit Committee” in the Company’s
Proxy Statement, for the Annual Meeting of Shareholders to be held May 10, 2022 (the “Proxy Statement”). Information relative to
executive officers of the Company is contained in Part I of this Annual Report on Form 10-K.

Item 11. Executive Compensation

The information set forth under the caption “Directors and Executive Officers Compensation” and “Compensation Policies and
Risk” in the Proxy Statement is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Other than the information required by Item 201(d) of Regulation S-K the information set forth under the caption “Security
Ownership of Certain Beneficial Owners and Management” in the Proxy Statement is incorporated herein by reference. The information
required by Item 201(d) of Regulation S-K is set forth in Item 5 of this report.

Item 13. Certain Relationships, Related Transactions and Director Independence

The information set forth under the captions “Transactions with Related Persons” and “Election of Directors” in the Proxy
Statement is incorporated herein by reference.

Item 14. Principal Accounting Fees and Services

The information set forth under the captions “Independent Registered Public Accounting Firm”, “Audit Fees”, “Audit-Related
Fees”, “Tax Fees” and “All Other Fees” in the Proxy Statement is incorporated herein by reference.

60
 Part IV

Item 15. Exhibits and Financial Statement Schedules

(a) Financial Statements and Schedule

Page Financial Statements

30 Consolidated Balance Sheets
31 Statements of Consolidated Income
32 Statements of Consolidated Comprehensive Income
33 Statements of Consolidated Cash Flows
34 Statements of Consolidated Shareholders’ Equity
35 Notes to Consolidated Financial Statements

Page Schedule
65 II - Valuation and Qualifying Accounts

(b) Exhibits

Exhibit
Number Exhibit

3.1 Amended and Restated Articles of Incorporation (incorporated by reference to the Company’s Registration Statement on
Form 10).

3.2 Amended and Restated Code of Regulations of Preformed Line Products Company (incorporated by reference to the
Company’s Registration Statement on Form 10).

3.3 Amendment to the Amended and Restated Code of Regulations of Preformed Line Products Company, effective May 10,
2016 (incorporated by reference to the Company's Registration Statement on Form 10).

4 Description of Specimen Share Certificate (incorporated by reference to the Company’s Registration Statement on Form
10).

4.2 Description of the Registrant’s Securities Registered Under Section 12 of the Securities Exchange Act of 1934
(incorporated by reference to the Company’s 10-K filed for the year ended December 31, 2019)

10.1 Preformed Line Products Company 1999 Employee Stock Option Plan (incorporated by reference to the Company’s
Registration Statement on Form 10).*

10.2 Preformed Line Products Company Officers Bonus Plan (incorporated by reference to the Company’s 10-K filed for the
year ended December 31, 2007).*

10.3 Preformed Line Products Company Executive Life Insurance Plan – Summary (incorporated by reference to the
Company’s Registration Statement on Form 10).*

10.4 Preformed Line Products Company Supplemental Profit Sharing Plan (incorporated by reference to the Company’s
Registration Statement on Form 10).*

10.5 Amended and Restated Loan Agreement dated September 24, 2015 between the Company and PNC Bank, National
Association (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).

10.6 Preformed Line Products Company 1999 Employee Stock Option Plan Incentive Stock Option agreement (incorporated by
reference to the Company’s 10-K filing for the year ended December 31, 2004).*

10.7 Preformed Line Products Company Chief Executive Officer Bonus Plan (incorporated by reference to the Company’s 10-K
filing for the year ended December 31, 2007).*

61
10.8 Preformed Line Products Company Amended and Restated Long Term Incentive Plan of 2008 (incorporated by reference
to Appendix A of the Company’s Definitive Proxy Statement filed on March 11, 2011).*

10.9 Deferred Shares Plan (incorporated by reference to the Company’s 8-K current report filing dated August 21, 2008).

10.10 Form of Restricted Shares Grant Agreement under the Amended and Restated Long Term Incentive Plan of 2008
(incorporated by reference to the Company’s 10-Q filing for the quarter ended September 30, 2008).*

10.11 Form of Restricted Stock Unit Award Agreement under the Amended and Restated Long Term Incentive Plan of 2008
(incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2013).*

10.12 Form of Restricted Stock Unit Award Agreement under the Amended and Restated Long Term Incentive Plan of 2008
(incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2014).*

10.13 Form of Restricted Stock Agreement under the Amended and Restated Long Term Incentive Plan of 2008 (incorporated by
reference to the Company’s 10-K filing for the year ended December 31, 2015).*

10.14 Form of Restricted Stock Unit Award Agreement under the Amended and Restated Long Term Incentive Plan of 2008
(incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).*

10.15 Amendment to Amended and Restated Loan Agreement dated November 6, 2015 between the Company and PNC Bank,
National Association (incorporated by reference to the Company’s 10-K filing for the year ended December 31, 2015).

10.16 Preformed Line Products Company 2016 Incentive Plan (incorporated by reference to the Company's 10-K filing for the
year ended December 31, 2020).

10.17 Promissory Note dated June 27, 2016, between the Company and PNC Bank, National Association (incorporated by
reference to the Company’s Form 10-Q filing for the quarter ended September 30, 2016).

10.18 Amendment No. 2 to Amended and Restated Loan Agreement dated August 22, 2016 between the Company and PNC
Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended
September 30, 2016).

10.19 Amended and Restated Line of Credit Note dated August 22, 2016 between the Company and PNC Bank, National
Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended September 30, 2016).

10.20 Amended and Restated Line of Credit Note dated March 13, 2018 between the Company and PNC Bank, National
Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended March 31, 2018).

10.21 Amendment No. 3 to Amended and Restated Line of Credit Note dated March 13, 2018 between the Company and PNC
Bank, National Association (incorporated by reference to the Company’s Form 10-Q filing for the quarter ended March 31,
2018).

10.22 Term Note April 25, 2019 between the Company and PNC Bank, National Association (incorporated by reference to the
Company’s 10-Q filing for the quarter ended March 31, 2019).

10.23 Joinder and Amendment No. 5 to Amended and Restated Line of Credit Note dated April 25, 2019 between the Company
and PNC Bank, National Association (incorporated by reference to the Company’s 10-Q filing for the quarter ended March
31, 2019).

10.24 Amended and Restated Loan Agreement, dated April 17, 2020, between the Company and PNC Bank, National
Association Joinder and Amendment No. 5 to Amended and Restated Line of Credit Note dated April 25, 2019 between
the Company and PNC Bank, National Association (incorporated by reference to the Company’s 10-Q filing for the quarter
ended June 30, 2020).

10.25 Promissory Note dated December 31, 2020, between the Company and PNC Bank National Association (incorporated by
reference to the Company's 10-K filing for the year ended December 31, 2020).

62
 10.26 Amended and Restated Loan Agreement, dated March 2, 2022, between the Company and PNC Bank, National
Association Joinder and Amendment No. 12 to Amended and Restated Line of Credit Note dated March 2, 2022 between
the Company and PNC Bank, National Association, filed herewith.

10.27 Amendment No. 12 to Amended and Restated Loan Agreement, dated March 2, 2022, between the Company and PNC
Bank, National Association, filed herewith.

14.1 Preformed Line Products Amended Company Code of Conduct (incorporated by reference to the Company’s 10-K filed for
the year ended December 31, 2019)

21 Subsidiaries of Preformed Line Products Company, filed herewith.

23.1 Consent of Ernst & Young LLP, Independent Registered Public Accounting Firm, filed herewith.

31.1 Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 302 of the Sarbanes-Oxley Act of
2002, filed herewith.

31.2 Certification of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 302 of the Sarbanes-Oxley Act of
2002, filed herewith.

32.1 Certification of the Principal Executive Officer, Robert G. Ruhlman, pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, furnished.

32.2 Certification of the Principal Accounting Officer, Andrew S. Klaus, pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, furnished.
101.INS Inline XBRL Instance Document.
101.SCH Inline XBRL Taxonomy Extension Schema Document.
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
104 Cover Page Interactive Data File (embedded within the inline XBRL document)

* Indicates management contracts or compensatory plan or arrangement.

63
 SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

Preformed Line Products Company

March 4, 2022 /s/ Robert G. Ruhlman

Robert G. Ruhlman
Chairman, President and Chief Executive Officer
(principal executive officer)

March 4, 2022 /s/ Andrew S. Klaus

Andrew S. Klaus
Chief Financial Officer
(principal financial and accounting officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons
on behalf of the registrant in the capacity and on the dates indicated.

March 4, 2022 /s/ Robert G. Ruhlman

Robert G. Ruhlman
Chairman, President and Chief Executive Officer

March 4, 2022 /s/ Glenn E. Corlett

Glenn E. Corlett
Director

March 4, 2022 /s/ Matthew D. Frymier

Matthew D. Frymier
Director

March 4, 2022 /s/ Michael E. Gibbons

Michael E. Gibbons
Director

March 4, 2022 /s/ R. Steven Kestner

R. Steven Kestner
Director

March 4, 2022 /s/ Richard R. Gascoigne

Richard R. Gascoigne
Director

March 4, 2022 /s/ J. Ryan Ruhlman

J. Ryan Ruhlman
Director

March 4, 2022 /s/ Maegan A. R. Cross

Maegan A. R. Cross
Director

March 4, 2022 /s/ David C. Sunkle

David C. Sunkle
Director

64
 PREFORMED LINE PRODUCTS COMPANY

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

Year Ended December 31, 2021, 2020 and 2019
(Thousands of dollars)

Additions
Balance at charged to Other Balance at
beginning of costs and additions or end of
For the year ended December 31, 2021: period expenses Deductions deductions period
Allowance for credit losses $ 2,848 $ 931 $ (435) $ (253) $ 3,091
Reserve for credit memos 616 1,964 (1,918) (9) 653
Slow-moving and obsolete inventory reserves 9,900 3,052 (2,488) 172 10,636
Accrued product warranty 1,282 934 (553) (28) 1,635
Foreign net operating loss tax carryforwards 2,912 1,935 (1,297) 0 3,550

Additions
Balance at charged to Other Balance at
beginning of costs and additions or end of
For the year ended December 31, 2020: period expenses Deductions deductions (a) period
Allowance for credit losses $ 3,224 $ 1,279 $ (1,527) $ (128) $ 2,848
Reserve for credit memos 625 774 (792) 9 616
Slow-moving and obsolete inventory reserves 8,877 2,035 (1,097) 85 9,900
Accrued product warranty 1,309 279 (314) 8 1,282
Foreign net operating loss tax carryforwards 3,137 1,176 (1,473) 72 2,912

Additions
Balance at charged to Other Balance at
beginning of costs and additions or end of
For the year ended December 31, 2019: period expenses Deductions deductions (a) period
Allowance for credit losses $ 2,652 $ 1,294 $ (697) $ (25) $ 3,224
Reserve for credit memos 526 817 (739) 21 625
Slow-moving and obsolete inventory reserves 8,462 1,283 (1,104) 236 8,877
Accrued product warranty 928 481 (317) 217 1,309
Foreign net operating loss tax carryforwards 3,495 153 (499) (12) 3,137

65
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 DIRECTORS OFFICERS
Robert G. Ruhlman Robert G. Ruhlman
Chairman, President, and CEO Chairman, President, and CEO

Glenn E. Corlett Dennis F. McKenna

PLP PROTECTS THE WORLD’S Dean Emeritus, College of Business–Ohio University

Maegan A. R. Cross
Chief Operating Officer

Andrew S. Klaus
MOST CRITICAL CONNECTIONS Director, Laurel Fund Chief Financial Officer

TO CREATE STRONGER AND Matthew D. Frymier

Former Chairman, Chicago Stock Exchange
John M. Hofstetter
Executive Vice President, U.S. Operations
MORE RELIABLE NETWORKS. Managing Director, Financial Technology Partners
William H. Haag III
Richard R. Gascoigne Vice President, Asia Pacific
Our precision-engineered solutions are trusted by Former Managing Director, Marsh Inc.
John J. Olenik
energy and communications providers worldwide Michael E. Gibbons Vice President, Research and Engineering
to perform better and last longer. With offices and Senior Managing Director, Brown Gibbons Lang & Company
Timothy J. O’Shaughnessy
manufacturing facilities in over 20 countries, PLP R. Steven Kestner Vice President, Human Resources
Former Chairman, Senior Partner, Baker & Hostetler LLP
works as a united global corporation, delivering J. Ryan Ruhlman
J. Ryan Ruhlman Vice President, Marketing and Business Development
high-quality products and unparalleled service to Vice President, Marketing and Business Development
Caroline S. Vaccariello
customers around the world. David C. Sunkle General Counsel and Corporate Secretary
Former Vice President, Research, Engineering, and Manufacturing

GLOBAL OPERATIONS
Argentina Malaysia
Buenos Aires, Argentina Selangor, Malaysia

Australia Mexico
Sydney, Australia Querétaro, Mexico

Austria New Zealand

Dornbirn, Austria Auckland, New Zealand

Brazil Poland
São Paulo, Brazil Bielsko-Biała, Poland
Curitiba, Brazil Russia
Canada Moscow, Russia
Cambridge, Ontario, Canada South Africa
Lachine, Québec, Canada Pietermaritzburg, Republic of South Africa
China Spain
Beijing, China Sevilla, Spain
Colombia Thailand
Medellín, Colombia Bangkok, Thailand
Czech Republic United Kingdom
Prostějov, Czech Republic Andover, Hampshire, England
France United States
Paris, France Cleveland, Ohio (Global Headquarters)
Indonesia Rogers, Arkansas
Bekasi, Indonesia Albemarle, North Carolina

India Vietnam
Mumbai, India Ho Chi Minh City, Vietnam

A copy of PLP’s code of conduct is posted at plp.com in the “About Us” section.
GLOBAL HEADQUARTERS
660 BETA DRIVE
CLEVELAND, OHIO 44143

440-461-5200

PLP.COM