Polyram Plastic Industries Ltd.

Investor Presentation • Mar 13, 2025

Company Presentation

March 2025

Disclaimer

• This presentation was prepared by Polyram Plastic Industries Ltd. (hereinafter: the "Company" and/or "Polyram") as a general presentation about the Company and is not intended to replace the need to review Polyram's full reports to the Securities Authority and the Tel Aviv Stock Exchange. Including, inter alia, Polyram's periodic reports including the Polyram's periodic report for 2024, and immediate reports (hereinafter: "Polyram's Reports") prior to making a decision regarding investment in Polyram's securities.
• The information contained in the presentation does not constitute advice, recommendation, or opinion regarding investment and does not constitute an offer to invest and/or purchase securities of Polyram (and in particular does not constitute an "offer to the public" or "sale to the public" of any kind) and does not replace the independent examination and personal advice according to the unique needs of each investor. Such an offer shall be made only in accordance with the provisions of the law, after obtaining the necessary permits from the Securities Authority and the stock exchange.
• This presentation includes a summary of the issues described in the context in which they are discussed and not the full information available to Polyram in relation to these issues and does not include the full results and financial information of Polyram and the notes to them, and/or Polyram's business plans and/or Polyram's risk factors.
• The presentation includes data on international markets, including growth volumes, penetration rates, sales, statistics, etc. It should be emphasized that this data is based on public data and Polyram's assessments and does not constitute any facts and/or representations.
• This presentation may include forward-looking information as defined in the Securities Law, 1968 (hereinafter: "forward-looking information"), including forecasts, and subjective assessments by Polyram's management as of the date of publication of the presentation, which although Polyram believes are reasonable, which are inherently uncertain, estimates and information regarding future events.
• The forward-looking information is solely aimed at the date to which it relates and is uncertain, unpredictable, and affected by factors beyond the control of Polyram, each of which, or a combination thereof and the realization of which risk factors characterize Polyram's activities, may materially impair results. The activities of Polyram cause the actual results to be materially different from the forward-looking information.
• Except as an undertaking to disclose information as required by the securities laws applicable to Polyram. Polyram does not undertake to update or change any information contained in this presentation in order to reflect events and/or circumstances that will apply after the date of its preparation. It is clarified that Polyram's plans and strategy included in this presentation are correct as of the date of their publication and may and will change in accordance with the decisions of the Company's Board of Directors from time to time.
• Polyram's assessments regarding Polyram's objectives are based, inter alia, on Polyram's assessments regarding trends in the Company's business in particular and trends in the market in which Polyram operates in general, as well as Polyram's management assessments regarding potential and market trends in Israel and international markets as of this report. These assessments may not materialize and/or materialize significantly differently from Polyram's assessments, inter alia, as a result of factors external to Polyram and which are not under control, including, inter alia, changes in the economic situation in Israel and abroad.
• To the extent that there is a conflict between what is stated in this presentation and what is stated in the Company's reports required by law, what is stated in the Company's reports will prevail.

Polyram – Overview

Confidential

Polyram is a global Leader in developing, manufacturing and marketing of	Three operating divisions: • Bondyram • Engineering Plastics (EP) • Polytron	Established in 1986
advanced functional		Financial Data (ILS in millions)
raw materials for	1,400 products	2024 2023
the plastic industry	Sophisticated manufacturing processes	1,001 1,001 Revenues
worldwide	Tailor Made solutions	92 85 Net Income
	Over 1,000 customers	168 153 EBITDA

Management

Netanel Guez CFO 8 years

CPO 38 years

Dror Zur

Idan Rephaeli COO 6 years

Amit Koren

3 Years

ZivHerling Bondyram Manager and VP Global Sales 23 years Local Market Manager

Eliyahu Katan Bondyram TL Manager 10 Years

Gabriela Marziparo Polytron Manager 14 Years

Efrat Gilat EP Export Manager 1 Year

Ofir Kayam Bondyram sales specialist 11Years

YaaraAvrahami Quality Manager 24 Years

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The Plastic Industry - Value Chain

CEO Highlights

6

The company reported a significant growth of approximately 8.1% in sales volume compared to the previous year, achieving a turnover of around 1 billion ILS.

The 2024 results demonstrate an increase across all profitability metrics, with a record gross profit of approximately 214 million ILS and an EBITDA of around 168 million ILS.

The construction of the new plant in Thailand is progressing well, and we anticipate that it will commence operations in the second half of 2025.

The company's extensive geographical distribution, both in terms of our customer base and high production capabilities near sales markets, provides a significant advantage, enabling substantial operational flexibility and competitive strength.

In response to a surge in orders, the company has decided to acquire an additional production line in the United States for the EP sector.

The board of directors has approved a dividend distribution of 10 million ILS. Since the beginning of 2021, the company has distributed a total of 230 million ILS to shareholders.

Polyram Thailand

Polyram is establishing a production site in Thailand for Bondyram products, with an investment of approximately \$5 million

The plant is in advanced stages of construction and is expected to begin operations in the second half of 2025

Initially, the site will feature two production lines, with potential for future expansion

The establishment of the plant will shorten the supply chain for Bondyram products in East Asia and allow the company to penetrate new markets

Growth engines of Polyram

Recycling, innovation, and sustainability are the core values of the firm. The company develops sophisticated recycled raw materials to lead the industry in the coming years through its recycling plants in UK, Germany, and Israel.

Polyram has established its presence in the American market by producing thermoplastic compound products in the USA and building a distribution system.

The company aims to develop synergies in the German market, the most industrialized country in Europe, by distributing Polyram products to MCT customers.

Expanding the market for elastomer products, particularly thermoplastic rubber produced at MCT, throughout Europe using its subsidiaries and the local market.

Intending to penetrate the field of electric vehicles and charging stations by developing advanced materials for new applications.

Innovation-Recycling-Sustainability

Polyram's field of material recycling is regarded as one of the company's primary growth engines

Development and marketing of recycled materials Polyram UK specializes in recycled materials.

Entering to recycling market through the acquisition of MCT-Polyram MCT produces two major products with recycled materials: (1) Polyolefins with minerals and glass fibers (2) Thermoplastic rubber (elastomers).

Dedicated production lines-to meet the increasing demand in the field of recycling, dedicated production lines have been established at a factory in UK and a factory in Israel.

Entering into new projects in the automotive industry-In a bid to improve the sustainability of their operations, more automotive manufacturers are making use of recycled material in vehicle interiors.

Progress in the ESG indicators, environment, Social and Corporate Governance, while building and managing an environmental policy.

Global Footprint

Polyram - Milestones

Strong and Consistent Growth

Diversification and risk reduction

End Markets Product Lines

Geographic Diversification 79% Export

Customer Diversification

Biggest customer < 5% of total revenue

20 of the Biggest customers = only 15% of total revenue

Direct salesto end producers > 91%

98% < Of the company's customers are covered by full credit insurance

Sales - ILS (M) & Quantities (K)

Product Lines

Maximum production capacity of ~151,850 Tons

Current exploitation ~65% Capacity

During 2021-2024 investment in increasing production capacity and operational efficiency, in order to meet expected demand in coming years.

Polyram is building a new production site in Thailand. The site is expected to begin operations in the second half of 2025 with a production capacity of approximately 10,000 tons.

In response to a surge in orders, the company has decided to acquire an additional production line in the United States for the EP sector, which will add approximately 5,000 tons of production capacity.

Bondyram

Products and Applications

Chemicals Packaging

Pharma and Cosmetics Packaging Construction Food Packaging

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Main customers

Confidential

Growth Engines and Growth potential

Tie Layers

Establishment of a dedicated factory and production lines for the American market.

Penetration into 3 major customers in the US Food sector.

Penetration into other industries such as the water transmission industry for infrastructure and construction.

Expanding marketing and sales channels to increase market share in selected territories such as China, India and Southeast Asia.

The TL market is characterized by high concentration where 80% of the total market is supplied by 5 major global competitors.

Coupling Agents and Impact Modifiers

• Coupling Agents –solutions to couple between different polymers and glass-fibers
• Impact Modifiers –provide compounds with special functionalities

Products and Applications

20

Main customers

Growth Engines and Growth potential

Coupling Agents and Impact Modifiers

Establishment of a dedicated factory and production lines for the American market.

Development of innovative products through the R&D department for unique applications.

The launch of an innovative impact enhancer for the American market, the fruit of a 5-year development process.

Polyram is a market leader in the field.

Engineering Plastics

• We provide customers with special functional raw materials with unique characteristics such as fire resistance, flexibility, UV resistance, and more
• Establishment of the first EP production line in the US
• Entering the world of recycling engineering materials at the Israeli site, for us and our customers
• Entering the world of thermoplastic rubber by Purchasing MCT plant in Germany
• We have appointed a new manager for the European market for the thermoplastic rubber.

Polyram MCT

Belongs to Engineering Plastics Product Line and includes 2 sectors:

• Polyolefins with minerals and glass fibers
• Thermoplastic rubber (elastomer)

Polyram MCT is an integral part of Polyram's strategy for expanding in the European market, ensuring proximity to customers and establishing production within Europe:

• Polyram MCT manufactures in Europe and ships inland within the region, enabling it to compete for large polyolefin projects in Europe and bulk material supply.
• Foundation for market development of Polyram products in Germany – developing the market for the entire portfolio of Polyram products through the company's distribution network.
• Thermoplastic rubber sector – a complementary product to Polyram's portfolio, which the company is beginning to distribute through its group companies in Europe and Israel.
• 27 • Potential for future expansion of the plant.

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Center console

Springs for an adjustable bed

Key Growth Engines

Geographic expansion – New geographical markets, fast-growing markets such as South East Asia, and traditional markets such as Germany, North America, and more

Execution of acquisitions and mergers strategy of manufacturers of engineering thermoplastic compounds in Europe and the USA.

Development of innovative products - advanced materials with unique properties

Penetrating the carbon fiber market in the field of engineering thermoplastic composites

Penetrating the plastic recycling market through the Company and its UK subsidiary

Global supplier for the European and American markets and supplying from Israel to the local market and the rest of the world

Polytron

• Polytron products mainly serve the Automotive Industry
• Mercedes, BMW, and Ford are among the company's key customers
• Unique qualities of Polytron based products allow the replacement of metal components with light-weight plastic based solutions
• Providing solutions for improving mechanical properties to end products in the automotive industry
• Global automotive supplier, operating in all three major continents of the industry
• Entering the electricity cabinets market in the US
• Establishment of a third production line in the US in Q4 2024
• Winning two major projects in the USA

key features

• Each new car contains 4-6 kg of long-fiber products
• Polytron products serve additional applications in a non-significant way

Main customers

• Diverse certifications from leading OEMs and Tier1 suppliers
• Global manufacturing, supply, and service capabilities

Key Growth Engines

Geographic expansion - further penetration to the US market leveraging newly established plant in the US

Maintaining the status of Polyram, as a leading supplier to the automotive industry, with global distribution channels on three continents

Polyram obtains OEMs and Tier 1 certifications which are a major barrier to market development

Strengthening the company's presence in direct marketing channels to OEM

Innovation – development of new long-fiber-based solutions to the automotive industry

Polyram is one of the top ten suppliers in the global market

Financial Statements

P&L M-ILS

					2023			2024
	2020	2021	2022	2023	2024	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
EP	378	511	651	576	560	160	145	148	123	146	137	150	127
Bondyram	206	306	349	327	338	85	78	78	86	79	93	89	76
Polytron	71	90	104	98	103	26	25	25	22	27	28	27	21
Sales turnover	655	907	1,104	1,001	1,001	271	248	251	231	252	259	267	224
Gross profit	140	201	201	195	214	45	50	49	51	56	58	55	45
Gross profit margin	21.3%	21.1%	18.2%	19.5%	21.4%	16.6%	20.2%	19.5%	22.1%	22.2%	22.4%	20.7%	20.1%
R&D expenses	3	3	3	4	5	1	1	1	1	1	1	1	1
S&M expenses	35	40	46	55	59	13	13	14	15	15	15	15	13
G&A expenses	13	19	21	22	22	6	5	5	6	6	6	6	5
Other expenses (income), net	3	-	3	-	-	-	-	-	-	-	-	-	-
Operating profit	86	139	129	114	129	25	31	29	29	34	36	34	25
Operating profit margin (w/o other expenses)	13.1%	15.4%	11.9%	11.4%	12.8%	9.2%	12.3%	11.8%	12.6%	13.3%	13.9%	12.6%	11.4%
Financing expenses, net	11	21	11	19	26	1	1	2	15	3	3	3	16
Income taxes	12	18	13	10	11	4	4	4	)2(	3	5	4	)1(
Net profit	63	100	104	85	92	20	25	24	16	27	28	27	10
Net profit margin	9.6%	11.0%	9.4%	8.5%	9.2%	7.4%	10.1%	9.6%	6.9%	10.7%	10.7%	10.1%	4.5%
EBITDA	113	166	166	153	168	35	40	40	38	43	46	44	36
EBITDA margin	17.3%	18.3%	15.0%	15.2%	16.8%	12.7%	16.3%	15.9%	16.2%	16.9%	17.7%	16.4%	16.0%
CAPEX	11	21	*33	35	34	5	13	7	10	4	8	10	13

* In addition to the MCT acquisition of 89M-ILS. 27

BS M-ILS

	31.12.2024	31.12.2023
Inventory	339	257
Current maturities of borrowings and current borrowings	216	106
Borrowings from banks	54	75
Equity	646	623

	31.12.2024	31.12.2023
Operating working capital	413	341
Net debt to EBITDA	1.29	0.87

Debt development M-ILS

SUMMARY

Technological leadership, customer loyalty and high quality products

Industry and geographical distribution (a variety of industries such as: irrigation and water supply, packaging and food, vehicles and automotive, using worldwide production and distribution channels)

Significant growth engines in the TL and adhesives divisions, the automotive industry and the plant in the US

Significant growth potential in all product divisions Strength and economic resilience

Entering the recycling engineering materials world, in the Israeli and UK sites

Dividend and cash flow policy in correlation with the company's growth

Powerful platform for mergers and acquisitions

Thank You