Tadiran Group Ltd.

Investor Presentation • Aug 15, 2024

Company Presentation, August 2024

Tadiran Group

Forward-looking information

This presentation was prepared by Tadiran Group Ltd. (hereinafter: "the company" and/or "the group" and/or "Tadiran") as a general presentation about the company and is not intended to replace the need to review the company's full reports to the Securities Authority and the Stock Exchange Value in Tel Aviv Ltd. including, among other things, the company's periodic reports including the company's periodic report for 2023, the report for the first and second quarters for 2024 and immediate reports of the company (hereinafter: "company reports") and the company's reports should be reviewed before making a decision regarding Investment in the company's securities.

The information included in the presentation does not constitute advice, a recommendation, an opinion regarding investment, does not constitute an offer to invest and/or purchase the company's securities (and in particular does not constitute an "offer to the public" or "sale to the public" of any kind) and does not replace an independent examination and advice Personal in accordance with the special data of each investor. Such an offer will be made only subject to the provisions of the law, after receiving the required permits for this 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 the company in relation to these issues. includes the full results and financial information of the company and the explanations thereof and/or the company's business plans or the description of all its activities and/or the company's risk factors.

The facts and data that served as a basis for the information detailed in this presentation are based on information as known to the company at the time of preparation of this presentation, including data published by entities external to the company, the content of which has not been independently checked by the company and therefore the company is not responsible for their correctness and they do not constitute company presentations.

This presentation may include forward-looking information as defined in the Securities Law, 1968-5778 (hereinafter: "forward-looking information"), including forecasts, subjective assessments of the company's management as of the date of publication of the presentation, which, although the company believes that they are reasonable, that are inherently uncertain, estimates and information regarding future events. The forward-looking information refers only to the date to which it refers and is uncertain, cannot be estimated in advance, is affected by factors that are not within the control of the company, each of which or a combination of them, as well as the realization of which risk factors that characterize the company's activity, may materially harm the results of the company's activity and cause the actual results to be materially different from the forward-looking information. With the exception of an obligation to disclose information as required by the securities laws applicable to the company, the company does not undertake to update or change any information included in this presentation in order to reflect events and/or circumstances that will apply after the date of its editing. It is clarified that the company's plans and strategy contained in this presentation are correct at the time of their publication and can and will change in accordance with the decisions of the company's board of directors as they may be from time to time. The company's assessments regarding the company's goals are based, among other things, on the company's assessments regarding the trends in the

company's business in particular and trends in the market in which the company operates in general, as well as the company's management's assessments regarding the potential and trends in the market in Israel and the international markets as of this date. These estimates may not materialize and/or materialize in a materially different manner from the company's estimates, among other things, as a result of factors external to the company and which are beyond the company's control, including, among other things, changes in the economic situation in the Israeli economy in general and in the market in which the company operates in particular, the development of new trends and/or Different from those that the company's management estimates as of this date, regulatory changes and the realization of which of the risk factors described in the company's reports and the possible effects of the war of iron swords, etc. To the extent that there is a contradiction 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.

"Enabling a healthy and sustainable living environment through renewable energy, comfortable climate and clean air, alongside maintaining its position as a leading company in the field of home and commercial air conditioning in Israel."

Company Vision

Comprehensive End-to-End Solutions

Electric Vehicle Charging – AC & DC Systems

Aluminum Profiles

Tadiran Solar	Energy Solutions	EFS
One-stop shop for solar energy systems in Israel	Energy storage systems, UPS, batteries, and vehicle charging management systems	Fire and smoke safety solutions and products

Group Structure

Tadiran Consumer Goods

Home and commercial air conditioning

Heat Pumps

White consumer goods

Fire and smoke safety solutions and products

EV charging

Factories in Israel including advanced laboratories and rigorous quality control.

Complex logistics system of import, production, storage and distribution. Efficient inventory process that allows for work in dynamic market conditions and a wide range of projects.

Local Israeli R&D department. Connection to startups and nurturing entrepreneurship

Leading in-house customer service department. Tadiran Xpert team to support every complex project

Management of a broad product portfolio of leading global brands in both air conditioning and new energy

Trade Service Innovation Supply Chain Manufacturing

Full End-to-End Value Chain

Leading, Recognized, and Preferred Brand

Company Overview

Main developments in the second quarter and first half of 2024

• The consumer goods sector revenues and operating profit in the second quarter of 2024 increased compared to the corresponding quarter last year and compared to the first quarter of 2024, also as a result of the effect of the ongoing heat loads that characterize the current summer months. This trend is expected to intensify in the third quarter and in view of the seasonality that characterizes the sector, we estimate that the annual operating profit rate will be around 10%.
• The energy sector in Israel was characterized by a significant increase in revenues compared to the corresponding half of last year mainly as a result of the progress of the storage projects carried out by the company. The regulatory environment continues to be supportive and positive and this is also due to the reduction of the load on the electricity grid and the updating of the tariffs for solar and storage systems.
• The energy sector in Europe and in Italy in particular, has experienced a slowdown in the last year and a half and this is mainly due to macro changes (including changes in electricity prices, interest rates, surplus stocks, falling panel prices and updating the incentives in the domestic sector). The company's assessment of a more moderate growth rate than its previous estimates also affects the valuation of the option and the reputation of VP Solar. Therefore, a decrease in the value of goodwill was recorded, which was partially offset by the revaluation of the liability in respect of the option, so that the overall effect on the net profit amounted to approximately NIS 10 million. In 2023, the Italian government's targets for the production of renewable energies were updated upwards and accordingly a system of supporting incentives for the industrial market was approved Commercial (C&I). We made adjustments to the aforementioned changes, we saw in the second quarter an increase in revenues compared to the first quarter of 2024 and we believe in the growth of the market in the medium and long term.
• Strategic plan We presented the considerations that led us to update the company's revenue target for 2026 while focusing on the company's core activities and assessing gradual and more moderate growth in the field of renewable energy. We are committed to act to realize the strategic plan and strengthen the company's core activities and continue the business development of the company's businesses.

The aforementioned information in relation to the company's estimates regarding the expected annual operating profit rate in the field of consumer products, as well as the company's estimates regarding the positive effects of the regulatory changes on the renewable energy market in Israel and Italy, is forward-looking information as defined in the Securities Law, 1968-5778 based on the information found in the company's hands and the company's estimates as of this date. The aforementioned information and estimates may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are beyond its control, including, Among other things, the continued development of the war and its direct and indirect effects on the economic, business and security situation in the State of Israel, changes in the macro environment in Israel and in the world which may affect, among other things, the extent of demand for the company's products, the manner in which the regulatory procedures are promoted by the various parties and their actual effect on the energy market in Israel and Italy as well as as a result of the realization of which of the risk factors listed in section 38 of part A of the company's periodic report for 2023.

Q2	-2024 & H 1 -2024 Financial Results
	Tadiran Group	Q2	Q2	Change	H1	H1	Change	FY
	(NIS millions) in	2024	2023	%	2024	2023	%	2023
	Revenues	445 1	416 9	6 8%	817 1	852 0	-4 1%	954 5 1 ,
	profit Gross	87 8	76 7	14 4%	156 7	150 8	3 9%	327 5
The second quarter	Gross margin	19 7%	18 4%		19 2%	17 7%		16 8%
of 2024 includes an expense (not in cash) from recording a	profit Operating Operating margin	-6 1 -1 4%	16 7 4 0%	-136 4%	11 1 1 4%	83 2 9 8%	-86 7%	157 1 8 0%	The first half of the year 2023 includes a one-time profit from the sale of the
provision for goodwill impairment	profit adjusted for Operating								"Escotec" activity in
in the amount of approximately NIS	one-off items Operating margin	23 6 3% 5	17 0 4 1%	38 9%	40 8 0% 5	36 8 4 3%	10 7%	110 2 6% 5	the amount of approximately NIS 45 8 million
29 7 million	EBITDA	37 3	30 1	23 9%	67 9	61 7	10 1%	162 3
Excluding an expense	EBITDA margin	8 4%	7 2%		8 3%	7 2%		8 3%
(not in cash) from	profit Net	0 6	7 7	-92 6%	9 7	50 9	-80 8%	96 2
recording a provision for a decrease in the	profit Net margin	0 1%	1 8%		1 2%	6 0%		4 9%

-2024 & H 1 -2024 Financial Results

Excluding an expense (not in cash) from recording a provision for a decrease in the value of goodwill that was partially offset by a revaluation of a liability for the option, the net profit is about NIS 10.8 million

Consumer Goods Division

7.6 14.6 Q2 2023 Q2 2024 3.5% 6.2% 6.2% 219.6 235.7 Q2 2023 Q2 2024 Segment operating profit and margin Q2 2023/2024

The results of the second quarter of 2024 improved compared to the corresponding period last year, both in terms of revenue and operating profit. The revenues of the second quarter increased by a rate of about 7.4% and the operating profit increased by a rate of about 91.8%. The improvement in operating profitability is mainly a result of an improvement in procurement costs and transportation costs.

Renewable Energy Division

Segment operating profit before other income (expenses) and margin H1 2023/2024

▪ In the second quarter of 2024, revenues increased by approximately 6.1%. The rate of operating profit excluding one-time expenses was about 4.3%.

NIS in millions

Renewable Energy Division

• The energy sector in Israel was characterized by a significant increase in revenues compared to the corresponding half last year. There is progress in the storage projects.
• The energy sector in Europe and in Italy in particular, has experienced a slowdown in the last year and a half and this is mainly due to macro changes (including changes in electricity prices, interest rates, surplus stocks, falling panel prices and updating the incentives in the domestic sector).

Energy storage systems

End -to

EV charging

Addressing the high penetration rate of electric vehicles in Israel. Smart AC and DC charging stations managed by an app for remote control. Service and warranty by Tadiran

Solar systems – End to end solutions

World -Leading Products With Professional Support from Experts Throughout the Entire Process And Construction Manufactured in Israel to Suit Each Project

Aluminum profile manufacturing

• Innovative technological solutions for a wide range of sectors
• Israeli local production
• Production capacity of 800 tons per month
• Aluminum profiles for the industrial sector
• Aluminum anodizing plant located in Karmiel
• Constructions for Tadiran solar systems
• Fully automated factory with no human touch
• Green factory
• Utilization of natural gas

Renewable Energy | Tadiran Aluminum

Fire and smoke protection solutions

Through the acquisition of EFS Engineering on 07.08.2024, Tadiran entered the fire and smoke protection solutions market.

This transaction is in line with the company's goals, including the expansion of the product lines marketed by the company, while taking advantage of synergistic advantages for the company's activities in the various fields, including, among other things, offering additional value in the field of consumer products, including in contractual projects and the commercial merger, expanding the product portfolio for customers in the field Renewable energy, including customers who purchase from the company uninterruptible power supply solutions, solutions for server farms, etc.

• Import, installation and service for fire curtains
• Production and supply of fire racks and smoke racks
• Fire passage sealing products
• Steel construction protection against fire
• Fireproof roller blinds
• Complementary products in the field

Building façade cladding (Tadiran Arava)

Following Tadiran 's expansion in the market of solar solutions for buildings, Tadiran intends to enter the field of BIPV (in the future)

At the beginning of August 2023, Tadiran completed the purchase of 70% of the shares of Tadiran Arava Ltd.

The aforementioned purchase is in line with the growth engines underlying the company's strategic plan, including, among other things, the creation of partnerships in areas complementary and/or tangential to the company's operations.

Arava operates in the field of planning and installation of aluminum cladding, curtain walls, etc. Arava intends to start operating in the field of BIPV cladding (building -integrated solar panels, installed as external cladding on the walls of buildings and enabling, through the use of the facades of the building, the increase of the area used for solar energy generation).

In Tadiran's estimation, the acquisition of control of Arava will provide Tadiran, in parallel with its existing activity, an infrastructure for developing activity in the entire value chain in the BIPV cladding market, starting with the production of the aluminum profiles used to install the BIPV, through the marketing of the panels integrated into the structure themselves and their installation through Arava.

The BIPV activity is an activity at the beginning of its development in Israel and in the world.

The aforementioned information in relation to the company's evaluations in relation to the company's entry through Arava into the field of BIPV and its benefits, in relation to the actual execution of building cladding projects using BIPV and/or other cladding materials through Arava, are forward -looking information as defined in the Securities Law, 5778 - 1968 and is based on the information in the company's possession and on the company's estimates as of this date, which are based on the company's existing activities and capabilities as well as its experience and familiarity with the energy sector in Israel. The aforementioned information and estimates may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among others, due to factors that are not known to the company as of this date and are beyond its control including, among others, the effects of the "Iron Swords" war, the manner and timing of the advancement of the regulatory procedures by the various parties in Israel, changes in the macro environment in Israel and in the world that may affect, among The rest, on the volume of demand in the energy sector including, the manner of development of the BIPV field in Israel in general and in Arava in particular and including, among other things, the volume of demand in this field, the efficiency of BIPV, regulatory provisions that may develop in the future as well as as a result of the realization of which of the risk factors detailed in section 38 of Part A to the annual report for 2023.

Renewable Energy | Tadiran Arava

Solar Panels

Authorized distributor of Qcells, Jinko and more - Global panel manufacturers

Energy conversion

Inverters, optimizers. The company is a distributor of SolarEdge, Huawei inverters and more

Storage systems

Authorized distributor of BYD, LG and more

EV charging

Distribution of products for charging vehicles - Mennekes, Wallbox and more

Heat Pumps

Distribution of heat pumps from leading manufacturers - Daikin, LG and more

Mounting and construction

Import and distribution of ready-made construction systems

Professionality

High-quality professionals with a high level of service awareness

Customer Relation and network

long-standing customer relationships with many segments based on the company's reputation

Advanced technology supplier

Inverters, panels and storage systems from the world's leading manufacturers

Solar Systems in Europe: End-to-End Solutions

Significant assets in activity areas

International renewable energy activity – VP Solar

Renewable Energy | VP Solar

*SolarPower Europe: An organization that brings together about 300 corporations in the solar energy sector in Europe and has set itself the goal of promoting the use of solar energy. The organization promotes policies that support the solar market in Europe, through research, publications and support for the industry.

The company's estimates regarding the expected positive effects of the measures taken by the Italian government as detailed above, on the scope of the growth of the solar market and storage systems in Italy and on the activity of VP SOLAR and in particular in relation to the positive effects on the industrial-commercial (I&C) market are forward-looking information as defined in the Securities Law, "H-1968 based on the information in the company's possession and on the company's assessments as of this date which are based on its experience and familiarity with this field in Italy and based on forecasts and assessments of various parties in Italy. The company has no ability to estimate when the consequences of the said changes will be manifested and how and whether they will be manifested in the results The company. The aforementioned information and estimates may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are not under its control, including the manner of promoting and implementing the regulatory procedures on by the Italian government, changes in the macro environment in Italy and Europe (such as interest rates and inflation), a further decrease in electricity prices, substantial changes in the incentive system to be introduced by the Italian government, changes in the scope of solar system inventory, a continued decrease in panel prices, as well as the realization of which of the risk factors detailed in section 38 of the annual report for 2023.

The Solar Market in Europe and Italy

Trends in the solar market in Europe and Italy

REPowerEU Plan

The European Union has allocated €113 billion to the construction of renewable energy power plants, including solar power plants. As part of this plan, the Italian government intends to invest approximately €90 million in Enel's company to build a panel manufacturing plant.

SolarPower Europe*

As of the end of 2023, the amount of solar electricity in Italy stood at 29.5 GW. According to the forecast, in the next 3 years, this amount is expected to double, so that the amount of solar electricity in Italy will reach 56.7 GW (an addition of 27.2 GW).

65% generation from renewables In June 2023, the Italian government updated its target for renewable energy generation by 2030 to 65% (up from 55%)

Promotion of an incentive system that reflects a trend of "shifting" incentives from the domestic market to C&I

A €5.7 billion incentive program for the establishment of "energy communities."	A €1.7 billion incentive program that offers 40% of the installation cost of solar systems on agricultural land.

Reducing Electricity Consumption in Businesses

A tax benefit program for businesses that reduce their energy consumption, including, among other things, the installation of solar systems with panels that were manufactured in Europe.

The total budget for tax benefits is about EUR 6.3 billion

Addition of 6 agorot per kWh to the existing tariff for solar systems in 70 urban localities for 15 years.

Exemption from Submitting Form 4	Green Track	Renewable Energy to the Existing Electricity Grid
Exemption from submitting a building permit (Form 4) for connecting a solar system to an existing building with an existing electrical connection.	Expansion of the "Green Track" pilot for connecting solar and storage systems up to 15 kW (instead of 10 kW).	Adding 2.3 GW from renewable energy sources to the existing electricity grid, with about 50% of them for low-voltage installations.
Rates Settings	"One Dunam in a Farm"	"Urban Premium"

Rates for energy storage systems (low voltage) were set for the first time, and tariffs for solar systems (low voltage) were improved.

Construction of ground-mounted solar systems in moshavim in Section A up to 1 dunam in size, under the existing tariff regulation for lowvoltage installations.

Promoting Regulation to Meet Israel's National Goals

30% Electricity Generation from Renewable Energy Sources by 2030

The aforementioned information in relation to their entry into force, the date of entry into force and possible effects of the decisions of the Electricity Authority detailed above and/or the regulatory procedures detailed above including, among others, the company's assessments that the above decisions may contribute to the growth of the solar market and storage systems and therefore constitute an opportunity for the company increase its activity in these areas, as well as the assessment that the regulation may ease the load on the electricity network, and/or in relation to the effect of the decisions of the Israeli government and/or the decisions of the Electricity Authority detailed above on the development of the renewable energy sector in Israel, including on the company's business, is forward-looking information as defined In the Securities Law, 1968-5778 based on the information in the company's possession and the company's estimates as of this date, which are based on its experience and familiarity with this field in Israel. The company has no ability to estimate when the consequences of the aforementioned changes will be reflected and how they will be reflected in the company's results. The information and estimates As stated, they may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are beyond its control, including, among others, the effects of the "Iron Swords" war, the manner The promotion of the regulatory procedures by the various parties and their actual effect on the energy market in Israel and society in particular, changes in the macro environment in Israel and the world which may affect, among other things, the extent of demand for solar systems and/or storage facilities and macroeconomic factors as well as as a result of the realization of which of the risk factors detailed in the section 38 of the annual report for 2023.

NIS 1.8 billion

Updating the company's strategic plan for 2026

2023 Revenue: NIS 0.9 billion

2023 Revenue: NIS 1.1 billion

Maintaining the leadership and expanding the air conditioning activity in Israel by increasing market share in the local market

The growth of the existing activities based on the company's capabilities as well as the expected regulatory developments in the solar market in Europe, Italy and Israel, including in the field of energy storage

2026 Revenue: 2026 revenue: NIS 1.2 billion

Revising the revenue target from 4.5 billion NIS to 3 billion NIS - target operating profit rate of about 10%

The information regarding the goals and the business strategy of the group as described above and the company's estimates regarding the dates in which it will realize the aforementioned goals as well as the manner in which the goals will be realized and including, among other things, the company's assessments regarding the growth potential inherent in the company's various fields of activity, among other things, as a result of regulatory developments in the field of renewable energy , entry of new products and technologies, as well as the company's estimates in relation to the revenue target and the operating profit rate as mentioned above, is forward-looking information as defined in the Securities Law, 1968, based, among other things, on the group's goals as of this date, its assessments of the trends in the group's business In particular, the trends in the markets in which the group operates in general, as well as the group's management's assessments regarding the potential and trends in its areas of activity. These assessments may not materialize and/or materialize in a materially different manner from the group's assessments, among other things, as a result of factors external to the company and which are not under the control, including, among other things, the development and the effects of the "Iron Swords" war, changes in the state of the economy in Israel and the market in which the company operates in particular, trends and changes that may affect the volume of demand for the company's products, regulatory changes in Israel and Italy, in particular in the field of renewable energy and the realization of which of the risk factors described in section 38 of the company's periodic report for the year 2023, which was published on March 18, 2024 (reference number: 2024-01-023152) (hereinafter: "the periodic report").