Avgol Industries 1953 Ltd.

Investor Presentation • Mar 7, 2025

We Aspire to Create Nonwoven Innovations to Enhance Quality of Life

An Indorama Ventures Company

2024 Fourth Quarter Financial Review

March 6, 2025

למסמך נגיש

Disclaimer

This presentation was created by Avgol Industries 1953 Ltd. (the "Company") and serves as a brief and general overview of the company's activities. It does not provide a comprehensive and detailed description of the company's activities and is not intended to replace a review of the company's financial statements. To gain a complete understanding of the company's operations and the risks it faces, as outlined in the disclosure requirements under the Securities Law, it is essential to refer to its immediate and periodic reports published by the company.

This presentation includes data and information that may be presented, characterized, edited, or segmented differently from the data in the financial statements. It is emphasized that in any case of a discrepancy between the information in the financial statements and the information in this presentation, the information in the financial statements shall prevail.

It is important to clarify that this presentation does not constitute an offer to buy or sell the company's securities, nor does it serve as an invitation to solicit such offers. The information provided herein should not be considered as a basis for making investment decisions, recommendations, or opinions, and it does not replace the investor's own judgment or the review of the company's financial statements.

This presentation may include forecasts, estimates, and data related to future events whose realization is uncertain and/or beyond the company's control, as well as information about the company's intentions or plans. Such information constitutes "forward-looking information," as defined in the Securities Law. The forward-looking information is based on the company's subjective assessment, made in good faith, drawing on experience and professional knowledge acquired by the company. It also relies on facts and data concerning the current state of the company's business, as well as published macroeconomic and/or statistical information from third parties (which the company has not independently verified and for which it is not responsible). This information is presented as it was known to the company at the time of preparing this presentation. However, the company's estimates and plans may not materialize, in whole or in part, or may materialize in a manner different from what was expected (including significantly), as they could be influenced by factors that cannot be predicted in advance and are beyond the company's control.

Analyst Conference | Who We Are

is a global leader in the development, manufacturing, and marketing of nonwoven fabrics, specializing in the hygiene sector.

We also serve a diverse range of industries, including medical, filtration, and construction, providing innovative and high-quality solutions for various applications.

AVGOL aspires to continue to grow and strengthen its market position by expanding production capacity to meet the continued growth of the hygiene market.

Our aspiration is to base our growth on developing innovative nonwoven products that will bring a solution to the fast changes in trends and preferences, with the goal to enhance the quality of life.

AVGOL continues to focus on the Hygiene segment while exploring other niches within the nonwovens industry which are synergetic to our expertise and technology.

Analyst Conference | Strong Footprint to Serve The Global Market

(*) Including the new RF5 line.

Analyst Conference | We Are Committed to Sustainability

Our first Environment, Social and Governance (ESG) report is published, marking a significant milestone in our journey towards sustainability.

"This report not only reflects our commitment to environmental stewardship and social responsibility but also establishes a framework for accountability and transparency with all our stakeholders, extending beyond merely meeting regulatory requirements."

SIVAN YEDIDSION, CEO, AVGOL

Analyst Conference | USA Expansion – Project Update

We have celebrated the commissioning of our brand-new highspeed, high-capacity, multiple beam nonwovens production line at our facility in Mocksville, NC. This milestone underscores the company's commitment to excellence and innovation.

Diego Boeri, Executive President of Indorama Ventures' Fibers Segment including Avgol, attended the opening and said: "This is a very nice example of how our strategy to collaborate closely with leading industry players pays off. Thanks to our team's customer intimacy, we are able to deliver market-driven innovation that meets current industry trends and helps our customers to respond to the needs of many end consumers in the baby diaper, adult incontinence and feminine care industry."

The inauguration event in Mocksville, attended by industry leaders, partners, and other key stakeholders, showcased live demonstrations of the new line's capabilities and highlighted the company's forward-thinking approach to manufacturing excellence. Avgol anticipates that the new production line will boost production efficiency and drive innovation in product development and market responsiveness.

Jingmen, China 39K MT

Diego Boeri, Executive President of Indorama Ventures' Fibers Segment, cutting the ribbon during the line opening event in Mocksville. Avgol's CEO Sivan Yedidsion (3rd from left), Will Marklin, Mocksville's Mayor (3rd from right) and employees joined the celebration.

Analyst Conference | Quarter Key Highlights

• ✓ Market is still over supplied and very competitive, particularly in the Asia. However, efforts to expand our market share in North America, as well as our actions to recover sales in Russia, since the Russia-Ukraine crisis, are evident in the results
• ✓ New RF5 line in USA in advanced commissioning stages and expected to be fully commercialized in the first quarter of 2025
• ✓ Russia's strongest quarter of 2024 in terms of capacity utilization and sales volume
• ✓ Increased sales in North America are supported by shipments from our other locations
• ✓ Revised agreements with suppliers and customers to reduce lag exposure mostly renewed for 2025
• ✓ Net loss of \$3M due to one-time tax expenses of \$5.4M related to years 2017-2023

Analyst Conference | Polypropylene Index Trend

Raw material indices decreased during the fourth quarter of 2024 but corrected in the beginning of 2025, to date. If price levels remain, the Company expects this to have a negligible impact on the results of the first quarter of 2025.

This information is forward-looking information, which is based on the information known by the Company at the time this report is being published. This information might not materialize or might materialize in a way that differs from that anticipated, inter alia, if a material change in trend occurs, or due to other parameters that affect the Company's manufacturing costs or the Company's selling prices.

Analyst Conference | Quarterly Financial Performance

\$Mn	Q4'24	Q3'24	%	Key Highlights
Revenues	91.2	79.5	14.7	Driven mainly by an increase of 11.8% in sales volume
Gross Profit	13.7	9.1	50.1	Jingmen, China The Gross Profit in Q4'24 includes a positive lag impact of 39K MT \$1.3M, compared to a negative impact of \$1.3M in Q4'23
SG&A Expenses	7.4	7.0	5.7	Maintained at a flat level, increase is due to logistics expenses mainly due to increase in sales volumes
EBITDA	12.8	8.3	54.2	EBITDA in Q4'24 includes a positive lag impact of \$1.3M, compared to a negative impact of \$1.3M in Q4'23
Underlying EBITDA	11.4	9.6	18.8	Increase in volumes and better operational efficiency, partially offset by increase in COGS and volume rebates to customers
Net Finance Expenses	2.9	3.5	17.1	Lower FX expenses, offset by increase in interest cost
Net Profit	-3.0	-1.8	66.7	Mainly impact of a one-time tax expense of \$5.4M
Operating CF	11.1	8.6	29.0	Supported mainly by improving working capital

Analyst Conference | Balance Sheet

\$Mn	31.12.2024	%	31.12.2023	%
CASH AND CASH EQUIVALENTS	60.9	13%	49.8	11% Jingmen, China
TRADE RECEIVABLES	34.0	7%	33.6	8% 39K MT
INVENTORY	38.5	8%	33.6	8%
OTHER CURRENT ASSETS	5.3	1%	6.8	2%
TOTAL CURRENT ASSETS	138.7	30%	123.8	28%
NON-CURRENT ASSETS	330.3	70%	317.8	72%
TOTAL ASSETS	469.0	100%	441.6	100%
CREDIT FROM BANKS AND OTHERS	88.0	19%	71.3	16%
TRADE PAYABLES	37.9	8%	25.6	6%
OTHER CURRENT LIABILITIES	22.3	5%	17.4	4%
TOTAL CURRENT LIABILITIES	148.2	32%	114.3	26%
LONG-TERM LOANS FROM BANKS AND BONDS	107.3	23%	107.7	24%
OTHER LONG-TERM LIABILITIES	21.9	5%	20.6	5%
TOTAL LONG-TERM LIABILITIES	129.1	28%	128.3	29%
EQUITY	191.7	41%	199.0	45%
TOTAL LIABILITIES AND EQUITY	469.0	100%	441.6	100%

EQUITY TO TOTAL BALANCE SHEET +40% CASH ON HAND \$61M INVENTORY INCREASE \$5M Mainly finished goods inventory due to increased sales TRADE PAYABLES INCREASE \$12M Due to increase in purchase of raw materials and improved payment terms NET WORKING CAPITAL \$46M

Tightly maintained and \$2M lower than at the end of 2023