Top Gum Industries Ltd.

Investor Presentation • Aug 21, 2024

LEGAL DISCLAIMER

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

its activities and does

convenient and concise presentation, and it does not exhaust the full data about the company and 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 "forward-looking information", as defined under the Israeli Securities Law, 1968. Forward-looking statements include descriptions regarding the intent,

TopGum 2024 2 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.

The US VMS Market

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CONFIDENTI AL

GUMMIES CONTINUE TO DRIVE THE VMS MARKET, ACCOUNTING FOR 24% OF ALL DELIVERY FORMATS IN 2023

USA supplement market share development by delivery format (USD Bn)

USA GUMMIES GROWTH TRAJECTORY UPDATED, ADDING AN INCREMENTAL TOTAL OF USD 5BN IN THE NEXT 3 YEARS

	2023	2024	2025	2026	CAGR
2023 FORECAST	15.0	15.9	16.7	17.4	4.9%
2024 FORECAST	15.6	16.9	18.3	19.7	8.0%
INCREMENTAL GROWTH	0.6	1.0	1.6	2.3 Bn

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 2024 6 Source: Nutrition Journal consumer survey targeted the average 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

E-COMMERCE GROWING TO BECOME A MAJOR DISTRIBUTION CHANNEL

TOPGUM'S EXPERTISE ADDRESSES CONSUMER PREFERANCES FOR GREAT TASTE AND EASE OF USE

Taste is the #1 factor for choosing a supplement delivery format

Q2 Performance

CONFIDENTI AL

SECOND CONSECUTIVE ALL TIME RECORD QUARTER Q2 2024 HIGHLIGHTS

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• Revenue: \$15 million, an 11% increase
• Accelerated supplements sales growth of 32%
• Adjusted EBITDA: \$2.6 million, a 12% increase
• Supplements' backlog of \$17 million
• A claim for NIS53.6 million was filed for damages resulting from the war

SALES AND ADJUSTED EBITDA Q2 2024 AND H1 2024 – ACCELERATED GROWTH

USD Millions

SUPPLEMENTS BACKLOG (FOR THE NEXT 4-5 MONTHS)

• A strong increase in year-overyear customers' orders backlog of dietary supplements

OUR TRANSFORMATIONAL PIVOTS

How did we do?

USD Millions

CONFECTIONERY SUPPLEMENTS

Sales development- a shift from confectionery to supplements USD Millions

60%

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CONFECTIONERY SUPPLEMENTS

Sales breakdown

GENERIC PRODUCTS TAILOR MADE How did we do?

USD thousands

H1-2021 H1-2024

LOCAL INTERNATIONAL Expanding Our Global Reach

1

9

TOPGUM 4 STRATEGIC PILLARS

Innovation leader Strategic

Pushing the edge of supplement gummies with improved functionality and better organoleptic qualities via propriety technology.

.1	.2	.3	.4

End-to-end solution

A to Zservices of full turnkey solutions of supplement gummies to premium brands and strategic international CPGs.

partnerships

Strategic partnerships with market leaders to unlock higher value, focusing on niche markets with lower competition and clear competitive edge.

Increasing capacity

Supporting growing demand by tripling the production capacity in a new pharma grade facility, and by establishing warehouse and bottling facility in the US.

Highest standards of nutraceuticals in the industry INNOVATIVE DELIVERY SYSTEM

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

Organoleptic Experience

Flavor | Color | Texture | Odor | Shape High-resistance melting point Clean label ingredients

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

High Dosage Improved Functionality

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

Highest standards of nutraceuticals in the industry TOPGUM PROPRIETARY MATRIX

200 products in development

GUMMICEUTICALS™

Truly sugar-free / No added sugar More than 60% of prebiotic dietary fiber

Sugar-free / No-added sugar No alcohol sugars No sweeteners Prebiotic effect

SUGAR-BASED

Gelatin or Pectin base More than 60% Sugar

No-added sugar No alcohol sugars Prebiotic effect

SUGAR-FREE

Gelatin or Pectin base Artificial Sweeteners/Sugar alcohol (Maltitol)

Sugar-free / No-added sugar No alcohol sugars No sweeteners Prebiotic effect

HIGH DOSAGE

Mg/Unit of Elemental Magnesium 100 Spring Launch More than*

*Available also in higher dosages: 100 mg / 150 mg / 200 mg and more

Highest dosage of Magnesium without any sandy texture and no metallic flavor!

Highest dosage of Vitamin C in a gummy ever, with a delicious taste.

THE IRON GUMMY B Y TOPGUM

Highest dosage sugar-free Iron gummies. Fiber-based, which balances the iron and helps prevent constipation.

UNIQUE ORGANIC MATRIX Innovative line of organic gummies – Sugar free*

• Crafted with a unique and proprietary organic gummy matrix sugar free.
• A gummy line customizable to a wide range of formulas and delicious flavors.
• This line contains only natural flavors and colors without any sugar alcohols, or sweeteners of any kind.
• New license supply agreement with the leading organic gummy brand in the US.

A variety of formulations, natural flavors & natural colors

*According to US FDA 21 CFR

GUMMICCINO – COFFEE LINE The energizing experience of coffee

An exclusive range of coffee gummies by TopGum.

A proprietary technology allows us to infuse gummies with the amount of caffeine found in one espresso shot.

place for the Best TastingndWon 2 ESPRESSO CAPPUCCINO MOCHA Functional Food competition at

FOR COFFEE LOVERS ON THE GO

CAFFEINE DOSAGE (40 mg) 1 gummy = 1 espresso shot

MICROENCAPSULATION Proprietary technology using unique formulas and know-how

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TopGum is building an advanced state-of the art, in-house microencapsulation facility

END TO END TECHNOLOGICAL SOLUTION TopGum is positioned as one of the leading CDMO* in the industry

IN-HOUSE PACKAGING AND BOTTLING Bottling – Growth Engine

~33% of end-product price is bottling & labeling

Maximum customization, shape, size, color, material, caps, seals, labels.

• One stop shop from production to final product, we deliver full value to our customers
• In March 2022, a new bottling line became operational
• In the US we are currently subcontracting our bottling to a 3rd party

TOPGUM'S BLUE CHIP CUSTOMER BASE CONTINUES TO EXPAND

2024 Active Customer Tier Distribution

Sales Tier Distribution

NEW STATE-OF-THE-ART FACILITY UNDER CONSTRUCTION The construction of the new factory is at an advanced stage

• Most of the equipment, systems, and main infrastructure have been installed
• As a result of the war the first production line has been postponed and is currently set to begin commercial production by Q1 2025
• The company is exploring options for the purchase or establishment of a manufacturing, bottling and logistics center in the USA
• The company is developing in-house QA and analytical lab capabilities following the acquisition of PharmItBe

USD thousands P&L

	Q2 2024	% of	Q2 2023	YoY % of		H1 2024	% of sales	H1 2023	% of	YoY
		sales		sales	Change				sales	Change
Revenue	14,992		13,462		11%	29,752		25,949		15%
Cost of sales	9,615	64%	8,591	64%	12%	19,314	65%	16,747	65%	15%
Gross profit	5,377	36%	4,871	36%	10%	10,438	35%	9,202	35%	13%
R&D	760	5%	813	6%	-7%	1,483	5%	1,495	6%	-1%
ટે&M	1,100	7%	1,284	10%	-14%	2,295	8%	2,239	13%	3%
G&A	1,887	13%	1,155	9%	63%	3,696	12%	3,008	33%	23%
Operating profits	1,630	11%	1,619	12%	1%	2,964	10%	2,460		20%
Finance expenses (Income), net	122	1%	26	0%	369%	(72)	0%	238	16%	-130%
Profit before tax	1,508	10%	1,593	12%	-5%	3,036	10%	2,222	99%	37%
Tax expenses	265	2%	244	2%	9%	501	2%	406	13%	23%
Net profits	1,243	8%	1,349	10%	-8%	2,535	9%	1,816	74%	40%
EBITDA	2,216	15%	2,108	16%	5%	4,128	14%	3,435	155%	20%
Adjusted Ebitda	2,596	17%	2,320	17%	12%	4,993	17%	4,331	1067%	15%

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

BALANCE SHEET

USD thousands

	June 30, 2024 June 30, 2023
Assets
Current asset	49,230	36,726
Non-current assets	62,077	44,054
Total asset	111,307	80,780
Liabilities and equity
Current liabillities	18,827	28,705
Non-current liabillities	23,946	5,905
Equity	68,534	46,170
Total liabillities and equil	111,307	80,780

Thank you

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