Top Gum Industries Ltd.

Investor Presentation • Apr 1, 2025

2024 Annual Report Investors Presentation

April 1st, 2025

The information included under this presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer to purchase securities and/or an invitation to make offers for their purchase or solicitation of any of the above regarding any securities of Top Gum Industries Ltd. (the "Company") and should not be regarded as a recommendation or an opinion. Any such offer or sale will be made on the basis of a prospectus published by the Company after receiving a permit from the Securities Authority and approval from the Tel Aviv Stock Exchange (hereinafter, respectively: "Securities Authority" and "the Stock Exchange").

This presentation does not purport to encompass or contain any information that may be relevant for the purpose of making any decision regarding an investment in the Company's securities and generally. This presentation does not replace independent data collection and analysis, it should be bear in mind that past data does not necessarily indicate future performance. The presentation includes data and statistics and other publications published by third parties, the content of which has not been independently verified by the Company. The presentation was made, for a convenient and concise presentation, and it does not exhaust the full data about the company and its activities and does

not replace the need to perform a full due diligence. The information contained in this presentation is incomplete and all that is stated in it is subject to a full due diligence and is not a substitute for reviewing reports published by the Company to the public and especially in the draft prospectus or final company prospectus, supplementary prospectus and shelf prospectus. The information under this Presentation is not a substitute for public Information and in the event of any conflict between the content of this presentation and the content of any public Information, the content of the Public Information shall prevail. The information in this Presentation should not be relied upon as any representation or warranty, express or implied, of the Company. No reliance should be made on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. No legally binding obligations may be created, implied, or inferred from this Presentation. Various statements in this presentation include information which derives from forecasts, estimates, assessments, and other information pertaining to future events and/or matters, the materialization of which is uncertain and beyond the Company's control, and which constitute "forwardlooking information", as defined under the Israeli Securities Law, 1968. Forward-looking statements include descriptions regarding the intent,

belief, or current expectations of the Company and are not guaranteeing future results, performance, or achievements and are based on current expectations, estimations, and assumptions, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performances, or achievements of the Company may differ materially from what is or may be expressed or implied in this presentation due to a variety of factors, many of which are beyond the Company's control, including, without limitation, certain risk factors. The Company does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise. Certain information and factual statements (including relating to markets or trends) contained herein are based on or derived from publicly available documents or independent third-party sources, and therefore the accuracy of such information and the assumptions on which such information is based has not been independently verified. Nothing in this presentation constitutes tax or business advice and does not constitute a substitute consulting appropriate advisors in these aspects. Every potential investor should seek advice and guidance in connection with potential investments, including tax advice is given such investor tax status.

GROWTH AHEAD

Horizon 2 USD 200M; 20% EBITDA

Horizon 1 >USD 100M; ~16% EBITDA

Horizon 3 Pharma Gummies Pioneer

Q4 2024 HIGHLIGHTS

Revenue Best Q4 USD 14.6M; +74% QoQ

Supplements Best Q4

USD 9.0M; 62% of Total Sales; +108% QoQ

Strong Supplement Backlog USD 33.8M*;

C TopGum *Including Island Abbey's Backlog

Adjusted

EBITDA

USD 2.3M;

+255% QoQ

2024 HIGHLIGHTS

All-Time Revenue Record USD 59.3M; +30% YoY

Adjusted

EBITDA

USD 9.5M;

+49% YoY

Supplements All-Time Record

USD 37.4M; 63% of Total Sales; +49% YoY

Island Abbey Acquisition

2 Product Launches HoneyGum & IronGum

2024 CONTINUES TOPGUM'S GROWTH JOURNEY

Despite a very challenging business environment – strong double-digit growth overall, driven by supplements acceleration

Confectionary

) TopGum

•

•

TOPGUM'S BLUE CHIP CUSTOMER BASE CONTINUES TO EXPAND

2024 Active Customer Tier Distribution

Sales Tier Distribution (USD M)

T TopGum

ISLAND ABBEY

POTENTIAL SYNERGIES AND OPPORTUNITIES

From sales through technology to operations

ISLAND ABBEY NUTRITIONALS™

Sales

• · Aggregated yearly run-rate of USD 100M with EBITDA margin of ~16%
• Expanded Tier-1 customer base
• Significant cross-selling opportunities
• Robust sales capabilities

Operations

• State-of-the-art facility
• · Leverage Island Abbey's bottling · · Lozenges know-how
• · · Share raw material sourcing
  • · Geographic risk mitigation
  • Fully certified by Health Canada, FDA, NSF, cGMP, SQF

Technology

- · Starchless depositing tech

• · Center-fill

US TARIFFS ON CANADIAN BASED PRODUCTS

• · November 25, 2024: President-elect Trump announced plans to impose a 25% tariff on all imports from Canada and Mexico.
• February 1, 2025: President Trump signed executive orders imposing a 25% tariff on all Mexican and Canadian imports. These tariffs were set to take effect on February 4.
• February 3, 2025: Following negotiations, the U.S. agreed to delay the tariffs on Canada and Mexico for one month.
• February 27, 2025: President Trump reaffirmed his intention to implement the 25% tariffs on Canadian and Mexican goods.
• • March 6, 2025: Announcement of a one-month exemption (until April 2, 2025) for goods compliant with the United States-Mexico-Canada Agreement (USMCA).
• · Since March 6th there are different rumors with respect to the tariffs. Yet to be seen how reality unfolds.
• April 2: Liberation Day?

RECAP - DEAL STRUCTURE

• Closing payment of USD 15M
• First anniversary payment USD 5M
• · One earn-out payment based on the increase in the company's gross profit in 2025
• Earn-out adjustment in case of Tariffs

Some customers' have already agreed to share the burden in case of tariffs being imposed.

Given the strategic advantages of the deal to TopGum, and the contractual adjustment mechanism, TopGum decided to pursue the agreement if tariffs are imposed.

An industry leading CDMO of gummy and lozenge nutraceuticals

• · Established 2004 in Charlottetown, Prince Edward Island, Canada
• State-of-the-art facility spanning 6,000 sqm with advanced production and bottling technologies
• A robust customer base of Tier-1 brands
• Developer and manufacturer of gummy and lozenge nutraceuticals through B2B co-man and independent B2C brand
• ~ ~145 experienced FTEs

Strong Financial Performance

Island Abbey's 2024 strong performance is expected to continue and accelerate in 2025

Consolidated annual EBUIDA runrate in excess of USD 2024 Revenue 100M with ~16% USD 0.85M; Adjusted EBITDA ~USD 20M; x5 YoY +47% YoY High double-digit 2024 Gross Profit revenue and significant EBITDA growth ~USD 3.9M; expected in 2025 +55% YoY

State-of-the-Art Manufacturing Facility

Two starchless gummy production lines and an additional lozenge production line supporting Island Abbey's growth prospects

Gummy Production

• Advanced large volume Tanis line and a smaller capacity Yinrich line
• · Starchless production technology
• High mineral-load capabilities
• · Adapted for center-fill technology

Lozenge Production

• Honey-based lozenges expertise
• 4 blistering and packaging lines

THE VMS MARKET

FUTURE GROWTH DRIVEN BY YOUNGER GENERATIONS WHO SEE GUMMIES AS THE PREFERRED DELIVERY FORMAT

All generations except for Boomers have a slight-to-major preference towards gummies

Which is your preferred dietary supplement format?

Gummies are the gateway for supplement usage

TopGum

Source: Nutrition Journal consumer survey U.S. consumer who frequently take dietary supplements. This survey launched in April 2023 via the Suzy online platform Question: "Please select your agreement with the following statements". N = 1,1066

UBIQUITY OF BRANDS LEADS TO MORE TARGETED OFFERING

General health leads the supplements market, with digestion and diet support playing a significant role. More focused indications are substantial by themselves

Why do you either currently take or would consider taking vitamins, minerals, or dietary supplements? Please select all that apply

STRATEGIC PIVOTS

FROM GENERIC TO TAILOR MADE

We continue our shift towards tailor made solutions, while keeping a solid share of off-shelf catalog products

USD M

ತಿ TopGum

36

INNOVATION LEADER Highest standards of nutraceuticals in the industry

Differentiated Matrix

GUMMICEUTICALS™ Truly sugar-free/No-added sugar | Prebiotic effect Organic (fiber or sugar based) | Unique fibers matrix

High Dosage

Highest dosage per one gummy without affecting the flavor Awarded winning products

Improved Functionality

Organoleptic Experience

Flavor | Color | Texture | Odor | Shape

High-resistance melting point

Clean label ingredients

Micro-encapsulation Masks flavors | Slow-release | Improves stability | Targeted release Enables new active ingredients | Preserves potency

opGum

CONFIDENTIAL

2

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360 MEDIA COVERAGE

confidential

A WIDE RANGE OF PROPRIETARY INNOVATIONS AND CATALOG PRODUCTS

ORGANIC GUMMIE

Unique Matrix Organic Gummies

Crafted with a proprietary fiber-organic matrix, our organic sugar-free gummy line is customizable to a wide range of formulas

The All-in-One Synbiotic Gummy

A proprietary combination of our dietary-fiber based gummy matrix coupled with high-dose probiotics in a combination of colors and flavors

MULTIMINERAL

The Building Blocks of Health

The optimal dosage and combination of magnesium, calcium, and zinc in a delightful cube form

cummicano

A Delicious Energy Shot

TopCapsTM microencapsulation high-dose caffeine, in a variety of delicious coffee flavors (and more!)

High-Dose Iron, No Metallic Taste

Utilizing our proprietary TopCapsTM technology, the ultimate combination of high-dosage iron with prebiotic fibers, delivers a nutritious, great-tasting gummy

HoneyGur

1,000 mg of Natural Liquid Honey

With a high-dosage of liquid honey, the gummies' unique hexagonal shape are more than supplements - they're treats.

OPERATIONS

INCREASING CAPACITY TO MEET GROWING DEMAND

• · The company is in the final stages of establishing the new factory. Test runs of the first production line started
• · Plant to be fully operational by Q3 2025
• Upon completion of the first stage, the company will more than double its current capacity
• · Upon completion of the second stage, the facility will meet the required standards for pharma gummies production
• · The company is currently assessing the necessary adjustments to the second line to meet Pharma and TGA standards
• The new plant will support a dedicated Micro-Encapsulation production capabilities
• · The company invests significant resources to assure the successful launch of the new facility, and minimize post-launch interruptions

PROVISION OF IMPAIRMENT

• · Concurrently with the acquisition of Island Abbey, the company assessed the changes in market dynamics, its necessary production requirements and the extra costs resulting from the war state in the last 18 months in Israel
• · Island Abbey's starchless production capabilities overlap in parts the new starchless line
• The company concluded that the first production line, together with its existing facility and the acquired capacity at Island Abbey will be sufficient to meet it long term growth objectives within the supplement sector - USD 200M
• · Given the above, the company recorded a one-time, extra ordinary USD 9.954M impairment provision for the starchless line
• The starchless line in the new plant will be converted solely for the development and production of pharma gummies

P&L - PROFORMA WITHOUT IMPAIRMENT PROVISION

USD thousands	Proforma without impairment			YTD 2024 YTD 2023 YoY Change
	provision
	Revenue	59,267	45,597	13,670
	Cost of sales	38,753	30,497	8,256
	Gross profit	20,514	15,100	5,414
	% from sales	34.6%	33.1%	1.5%
	R&D	2,831	3,448	(617)
	S&M	5,642	4,481	1,161
	G&A	8,314	5,227	3,087
	Other (income)/expenses	(395)	(1,019)	10,578
	Operating profits	4,122	2,963	1,159
	% from sales	7.0%	6.5%	0.5%
	Finance expenses (Income), net	(83)	(1,007)	924
	Profit before tax	4,205	3,970	235
	Tax expenses	737	757	(20)
	Net profits	3,468	3,213	255
	EBITDA	6,102	4,011	2,091
	Adjusted EBITDA	9,519	6,385	3,134
	% from sales	16.1%	14.0%	2.1%

Non-GAAP EBITDA excludes one-time expenses from ESOP grants and bonuses to employees regarding IPO / Equity transactions

T TopGum

P&L

USD thousands

			Q4 2024 Q4 2023 QoQ Change			YTD 2024 YTD 2023 YoY Change
Revenue	14,631	8,389	6,242	59,267	45,597	13,670
Cost of sales	9,629	6,029	3,600	38,753	30,497	8,256
Gross profit	5,002	2,360	2,642	20,514	15,100	5,414
% from sales	34.2%	28.1%	6.1%	34.6%	33.1%	1.5%
R&D	341	976	(635)	2,831	3,448	(617)
S&M	1,948	1,377	571	5,642	4,481	1,161
G&A	2,655	1,211	1,444	8,314	5,227	3,087
Other (income)/expenses	9,559	(1,018)	10,577	9,559	(1,019)	10,578
Operating profits	(9,501)	(186)	(9,315)	(5,832)	2,963	(8,795)
% from sales	-64.9%	-2.2%	-62.7%	-9.8%	6.5%	-16.3%
Finance expenses (Income), net	(92)	(1,475)	1,383	(83)	(1,007)	924
Profit before tax	(9,409)	1,289	(10,698)	(5,749)	3,970	(9,719)
Tax expenses	රිම	238	(139)	737	757	(20)
Net profits	(9,508)	1,051	(10,559)	(6,486)	3,213	(9,699)
EBITDA	716	(652)	1,368	6,102	4,011	2,091
Adjusted EBITDA	2,259	637	1,622	9,519	6,385	3,134
% from sales	15.4%	7.6%	7.8%	16.1%	14.0%	2.1%

Non-GAAP EBITDA excludes one-time expenses from ESOP grants and bonuses to employees regarding IPO / Equity transactions

J TopGum

47 115 ,	45 919 ,
61 085 ,	58 924 ,
108 200 ,	104 843 ,
23 440 ,	12 916 ,
22 182 ,	24 339 ,
45 622 ,	37 255 ,
3 078 ,	3 062 ,
56 946 ,	56 631 ,
686	(454)
1 868 ,	8 349 ,
62 578 ,	67 588 ,

108,200 104,843

GROWTH AHEAD

Horizon 2 USD 200M; 20% EBITDA

Horizon 1 >USD 100M; ~16% EBITDA

Horizon 3 Pharma Gummies Pioneer

Thank you