Polyram Plastic Industries Ltd.

Investor Presentation • Nov 12, 2024

Company Presentation

November 2024

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 2023, Third quarter 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		1-9.2024	1-9.2023	Q3.2024	Q3.2023
the plastic industry	Sophisticated manufacturing processes	Revenues	778	769	267	251
worldwide	Tailor Made solutions	Net Income	82	69	27	24
	Over 950 customers	EBITDA	132	115	44	40

Management

Netanel Guez CFO 8 years

Dror Zur CPO 38 years

Idan Rephaeli COO

3 Years

6 years Local Market Manager

ZivHerling Bondyram Manager and VP Global Sales 23 years

Eliyahu Katan Bondyram TL Manager 10Years

Gabriela Marziparo Polytron Manager 14Years

Efrat Gilat EP Export Manager 1 Year

Ofir Kayam EP category sales specialist 10Years

YaaraAvrahami Quality Manager 24Years

The Plastic Industry - Value Chain

CEO Highlights

6

The controlling shareholder of Polyram, FIMI Fund, has notified the company that FIMI Seven Fund will acquire all of the company's shares from FIMI Five.

The company's management is pleased with FIMI Fund's decision to transfer Polyram's shares to the new 'FIMI 7' fund. Polyram has undertaken several significant processes to increase growth and improve profitability with the help of FIMI, and we believe that continued cooperation will yield many fruits. This decision is a significant and important expression of confidence in the company by a strategic investor who has been accompanying the company for several years.

The company has completed the exercise of its call option to increase its ownership in its subsidiary, Polyram USA, from 51% to 100%, for 4.9 million USD. The company is preparing to expand its business operations in the United States, which involves recruiting additional sales personnel.

The effects of the war after a year:

• We have increased our inventory levels in response to extended lead times from the East.
• Both of our manufacturing plants and two domestic ports are operating at full capacity. The company has met all customer commitments.
• 90% of our Israeli customers operate in the export market and are therefore not affected by changes in domestic demand. Moreover, the company has experienced significant growth in demand for our products in Israel, particularly in the irrigation and agriculture sectors.

CEO Highlights

6

Our global presence provides us with the flexibility to fully meet customer demands and has contributed to Polyram growth across various geographic markets. As part of our growth strategy, the company is continuing to expand by building a seventh plant in Thailand, which is expected to be operational in the second half of 2025.

The company continues to implement a strategy of global growth and expansion, focusing on investments in strategic projects. Within this framework, we have undertaken several significant initiatives, including the establishment of a new logistics warehouse in close proximity to our production lines, the acquisition of automated packaging machines that will result in labor cost savings and improved profitability, and more.

The board of directors decided to distribute a dividend of 10 million NIS and a total of 220 million NIS was distributed from 2021.

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 80% Export

Customer Diversification

Biggest customer < 5% of total revenue

20 of the Biggest customers = only 37% of total revenue

Direct salesto end producers > 89%

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

Sales - USD (M) & Quantities (K)

Product Lines

Maximum production capacity of ~151,850 Tons

Current exploitation ~65% Capacity

During 2021-2023 investment in increasing production capacity and operational efficiency, in order to meet expected demand in coming years.

Polyram will build 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.

Polyram ordered an additional production line for Polytron for our site in USA which is expected to operate by end of 2024 in order to supply for new projects.

Bondyram

Products and Applications

Chemicals Packaging

Pharma and Cosmetics Packaging Construction Food Packaging

18

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
• Q1/2023 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.

Confidential

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

Polyram MCT

Belongs to Engineering Plastics Product Line and includes 2 sectors:

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

The acquisition of MCT is in correlation with Polyram's strategy for expansion in the European market and production in Europe

• Production and distribution in Europe- allows obtaining large projects of polyolefins and Bulk supplies.
• Penetration into the German market by the company's distribution system with Polyram's products.
• Penetration into the thermoplastic rubber market through the European subsidiaries and Polyram Israel.

27

▪ Potential expedition of the production line.

12

▪ Acquisition pricing based on X6 of the EBITDA .

Center console

Springs for an adjustable bed

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

Polytron revenues (Millions \$) 2015-2023

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			2023 2024
	2020	2021	2022	2023	Q1	Q2	Q3	Q4	Q1	Q2	Q3	1-9	1-9
EP	378	511	651	576	160	145	148	123	146	137	150	453	434
Bondyram	206	306	349	327	85	78	78	86	79	93	89	241	262
Polytron	71	90	104	98	26	25	25	22	27	28	27	76	82
Sales turnover	655	907	1 104 ,	1 001 ,	271	248	251	231	252	259	267	770	778
profit Gross	140	201	201	195	45	50	49	51	56	58	55	144	169
profit Gross margin	21.3%	21.1%	18.2%	19.5%	16.6%	20.2%	19.5% 22.1%		22.2%	22.4%	20.7%	18.7%	21.8%
R&D expenses	3	3	3	4	1	1	1	1	1	1	1	3	3
S&M expenses	35	40	46	55	13	13	14	15		15	15	40	45
G&A expenses	13	19	21	22	6	5	5	6		6	6	16	17
Other expenses (income) , net	3	-	3	-	-	-	-	-		-	-	-	-
Operating profit	86	139	129	114	25	31	29	29		34 36 34		85 103
(w/o profit other expenses) Operating margin	13.1%	15.4%	11.9%	11.4%	9.2%	12.3%	11.8%	12.6% 13.3%		13.9%	12.6%	11.1%	13.3%
Financing expenses, net	11	21	11	19	1	1	2	15	3	3	3	4	9
Income taxes	12	18	13	10	4	4	4	)2(	3	5	4	12	12
profit Net	63	100	104	85	20	25	24	16	27	28	27	69	82
profit Net margin	9.6%	11.0%	9.4%	8.5%	7.4%	10.1%	9.6%	6.9%	10.7%	10.7%	10.1%	9.0%	10.5%
EBITDA	113	166	166	153	35	40	40	38	43	46	44	115	132
EBITDA margin	17.3%	18.3%	15.0%	15.2%	12.7%	16.3%	15.9%	16.2%	16.9%	17.7%	16.4%	15.0%	17.0%
CAPEX	11	21	*33	35	5	13	7	10	4	8	10	25	22

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

BS M-ILS

	30.09.2024	30.09.2023	31.12.2023
Inventory	323	281	257
Current maturities of borrowings and current borrowings	234	147	106
Borrowings from banks	63	81	75
Equity	652	637	623
	30.09.2024	30.09.2023	31.12.2023
Operating working capital	447	407	341
Net debt to EBITDA	1.42	1.31	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