Kafrit Industries (1993) Ltd.

Investor Presentation • Nov 24, 2024

WELCOME TO KAFRIT GROUP

COMPANY PRESENTATION

Disclaimer

This presentation does not constitute an offering to purchase or sell securities of Kafrit Group Ltd. (the "Company") or an offer for the receipt of such offerings.

The presentation's sole purpose is to provide information. The information contained in the presentation and any other information provided during the presentation (the "Information") does not constitute a basis for investment decisions and does not comprise a recommendation, an opinion or a substitute for the investor's sole discretion. The Information provided in the presentation

concerning the analysis of the Company's activity is only an extract, and in order to receive a complete picture of the Company's activity and the risks it faces, one should review the Company's reports to the Israel Securities Authority and the Tel Aviv Stock Exchange.

The Company is not liable, and will not be held liable, for any damage and/or loss that may be caused as a result of use of the Information.

The presentation may contain forward-looking statements as defined in the Israeli Securities Law, 5728-1968. All forward-looking statements in this presentation are made based on the Company's current expectations evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory changes, currency fluctuations or the occurrence of one or more of the Company's risk factors. In addition, forward-looking forecasts and evaluations are based on information in the Company's possession while preparing the presentation.

The Company does not undertake any obligation to update forward-looking forecasts and evaluations made herein to reflect events and/or circumstances that may occur after this presentation was prepared.

The current reality for KAFRIT IL

Over the last months, KAFRIT IL has faced challenges that have tested us not just as a company, but as human beings. We've experienced unimaginable loss, and now have a new responsibility to our team members, families, customers, and partners.

KAFRIT IL was born in Kibbutz Kfar-Aza, where the October 7 th 2023 attacks have left every one of our people in the kibbutz feeling an unprecedented loss. We were devastated to lose our team member Dorit Bar Ilan, our Board member Aviv Kutz, and our SVP Business Development & Innovation Nadav Goldstein.

In the wake of the tragedy, we're committed to using our knowledge and resources to help our team members, families and the Kibbutz Kfar-Aza community move forward. Our focus on people has always driven our ESG commitments and goals, and today this matters more than ever, both to our people and the people of Israel. We've been sending food to families of recruited individuals, financial assistance to those who need it, and paid salaries to those who can't work.

Thanks to the collaborative culture among Kafrit Group's companies and partners, we've kept our business active and resilient, and maintained our high standards of client service, and we were releasing materials under military protection.

KAFRIT IL plant came gradually back to operations, becoming fully operational since mid December 2023. Working together, we started, and we will overcome these obstacles, advance our commitments to all our stakeholders, and emerge stronger than ever.

Our Place in the Supply Chain

Kafrit Group

Masterbatches and Compounds engineered for the future of plastics

Our purpose is to unite talent and technology to drive the future of plastics, together.

Working together for the future of plastics.

6

Enhance our strong Business Portfolio while Increasing Profitability driven by a significant Transformation from a Production-based Company to a Customer-Centric Company, focused on Added Value Service

Strategic Pillars	Higher Profitability in Business Units		Drive the future, together
	Customer Experience	Operational Excellence	Product Technology	Focus in Colors	Develop our Talent
Mission	Be the Best-in-Class Service and Solution Provider	Excel in every step of the Supply chain	Develop innovative products and integrate new technologies that enable a better future	Become a Multi-Local Player in Colors and enter complementary segments	Foster a culture of collaboration inside and outside
Action	• Design & implement strong customer experience model • Innovative Pricing system based on Technology • Automation in handling materials • Embrace data analytics in Operations • Unlock Raw Material Group's opportunity		• Strategic alliances for breakthrough innovation • Improve Portfolio mix towards innovative solutions • Product Innovation to help our customers become more eco-friendly	• Acquisitions & PMI • Transfer & leverage of knowledge	• Upskill our people • Implement the Sustainability Agenda • Promote communities (internally and externally)
Key Enabler	Data Technology, Digital Transformation

Kafrit Sustainability Strategy for 2030

Our Sustainability aspirations are that our People, Products' design and our aligned Actions, together with our Stakeholders – will make a Better World.

Areas of Action	Operating Sustainably	Living Sustainably	Innovating Sustainably	Business Developing Sustainably
Mission	We continuously limit the negative impact our operations have on the environment	We work to ensure that our people are safe and act according to our values	We help our Customers to become more eco friendly through Product Innovation	We Balance our Portfolio through Relevant Business Development and Strategic Alliances
Report Sustainably			We measure our actions, setting long and short-term goals striving to achieve results and Report them

Including 2024 acquisitions

9

Milestones

Around the World

Legal Group Structure

Acquired in 10/2022

Global Leadership Team

02 PORTFOLIO

How our portfolio developed since 2020?

How our portfolio developed since 2020?

The Members of Kafrit Group

The Members of Kafrit Group

Masterbatches and Compounds for different applications

Compounds

Liquid Colors

Distribution

Development

Applications

INJECTION MOLDING / BLOW MOLDING

POLYCARBONATE AND PMMA SHEETS

POLYETHYLENE PACKAGING POLYPROPYLENE CAST AND CALENDER FILMS

HALOGEN FREE SOLUTIONS FOR SHEETS AND PIPES

BLOWING AGENTS

OPTIMIZING BOPP FILM PRODUCTION

CONPEEL COMPOUNDS ANTIOXIDANTS ANTIMONY FREE / REDUCED ANTIMONY FR SOLUTIONS ECOCELL AGRICULTURAL FILM

ADDING VALUE TO FIBERS AND NONWOVENS

20

Our complete range of innovative, reliable, and economical products

ACID SCAVENGERS ANTIBLOCKING AGENTS ANTIFOGGING AGENTS ANTIMICROBIAL AGENTS ANTISLIP AGENTS ANTISTATICS ANTIOXIDANTS BARRIER MB CAVITATING AGENTS CLEANING COMPOUNDS CONDUCTIVE COLOR CONCENTRATES

CROSS-LINK ELECTRET MB FILLERS FLAME RETARDANTS FOAMING AGENTS HEAT STABILIZER INFRARED ABSORBER LIGHT STABILIZERS LUBRICANTS MATT COMPOUNDS METAL DEACTIVATORS MODIFIER MASTERBATCH NUCLEATING AGENTS ODOR CONTROL OPTICAL BRIGHTENERS PEEL COMPOUNDS PHARMACOPOEIA MB PROCESSING AIDS PURGE AGENTS RELEASE AGENTS SLIP AGENTS SYNTHETIC PAPER COMPOUNDS THERMOSTABILIZERS UV ABSORBERS / UV STABILIZERS WHITE CONCENTRATES

A well diversified portfolio

7-9.2024 NIS Value Sales

Among our customers – None of them > 5%

YTD/2024 PERFORMANCE HIGHLIGHTS

YTD/2024 Highlights

103MNIS

OPERATING PROFIT

EBITDA 154MNIS

Strong Financial results driven by acquisitions, volume and margin growth, despite the softness in some markets due to the Macro-economic environment

Consolidated P&L – 1-9 YTD 2024 vs. 2023
	M-ILS		Change
	2024	2023	2023
Sales	82	70	17
(Ton)	550	552	0%
Volume	,	,
Sales	1 038 5 ,	845 4	22 8%
Materials	625	556	12
	7	8	4%
Manufacture	171	124	37
&	4	9	2%
Labor
COST	797	681	16
OF	1	8	9%
SALES
GROSS PROFIT	241 3	163 6	47 5%
	23 2%	19 4%
Sale	81	61	31
&	0	7	2%
Marketing
General	52	41	25
&	3	9	0%
Admin
Other	4	0	1465
(income)	8	3	7%
expenses
	103	59	72
	3	7	9%
Operating Profit	9 9%	7 1%
	154	92	66
	0	4	7%
EBITDA	8% 14	9% 10

(*) 2024 results include ABSA RESINS CAN and BADGER COLOR USA results, contributing ~9MNIS to the EBITDA

YTD EBITDA increased driven by Organic Volume and Margin improvement, recovering in our European Companies, on top of the new Acquisitions Impact

(*) Non-organic = ABSA RESINS CAN and BADGER COLOR USA first time consolidation

Net Debt Increases due to the New Acquisitions at the Beginning of 2024

Improving in Safety KPI, with 0 Severe LTI

Q3/2024 PERFORMANCE HIGHLIGHTS

Strong Financial Results Driven by Acquisitions and Margin Growth, despite the Softness in Some Markets due to the Macro-economic Environment

Consolidated P&L – Q3 2024 vs. 2023
	M-ILS		Change
	2024	2023	2023
Volume	26	24	8
Sales	721	634	5%
(Ton)	,	,
Sales	357	297	20
	6	3	3%
Materials	212	196	8
	3	6	0%
Manufacture	61	42	1%
&	9	4	46
Labor
COST	274	239	14
OF	2	0	7%
SALES
	83	58	42
	4	4	9%
GROSS PROFIT	23 3%	19 6%
Sale	29	21	37
&	2	2	3%
Marketing
General	19	14	31
&	4	8	2%
Admin
Other	0	0	0
(income)	1	0	0%
expenses
	34	22	6%
	7	3	55
Operating Profit	9 7%	7 5%
	51	33	52
	3	7	3%
EBITDA	14 3%	11 3%

(*) 2024 results include ABSA RESINS CAN and BADGER COLOR USA results

Quarterly Sales Development (MNIS)

Quarterly Operating Profit Development (MNIS)

Quarterly EBITDA Development (MNIS)

FCF (MNIS)

Dividend Distribution (MNIS)

Working together for the future of plastics.