Polyram Plastic Industries Ltd.

Investor Presentation • May 20, 2024

Company

May 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, first quarter 2023 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. ▪ 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 ▪ 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
• 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.
• 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.
• 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

Polyram is a global solution provider, manufacturer and marketer of advanced functional raw materials for the plastic industry worldwide

Confidential

Three operating divisions: • Bondyram Established in • Engineering 1986 Plastics (EP) • Polytron
Financial Data (ILS in millions)
1,400 products Q1.2024 Q1.2023
Sophisticated Revenues 252 271 manufacturing processes
Net Income 27 20 Tailor Made solutions
EBITDA 43 35 Over 950 customers 1

Management

CEO Highlights

Since the start of the war, the company has continued to operate fully in Israel and around the world without any difficulties in production or transportation of products, thanks to the company's structure and distribution, and this is reflected in the results. The Board of Directors has approved to exercise the call option to increase the Company's hold in Polyram With significant growth in all key parameters (profitability and margins): gross profit, operating profit,

USA, from 51% to 100%. The option is expected to be exercised in the third quarter of 2024.

The Company's first quarter results continue the trend of strong performance. net income, and EBITDA

The board of directors decided to distribute a dividend of 10 million NIS and a total of 68 million NIS was distributed for 2023-2024 profits.

There is a recovery trend in the local market starting in 2024.

The company estimates demand will grow in 2024 compared to 2023, and we see a growth vector in the local market.

All 2024 projects are successfully underway and on track.

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 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

Strong and Consistent Growth

Diversification and risk reduction

End Markets Product Lines

*Divided into 3 product divisions 12

Diversification and risk reduction

total revenue

covered by full credit insurance

Product Lines Maximum production capacity of ~151,850* Tons

Current exploitation ~55%

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

During the year 2023, two additional production lines began to operate, which results in an increase of approximately 7,000 tons of production capacity.

The company ordered an additional production line for the polytron field at a factory in the USA which is expected to operate at the end of 2024. in order to provide demands in the new project. 9

Bondyram

Tie Layers

Products and Applications Pharma and Cosmetics

Packaging

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Growth Engines and Growth potential

Tie Layers

Establishment of a dedicated factory and production lines for the American market.

penetration of 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 fibers with special functionalities

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

• Polyram develops tailor-made solutions and raw materials for plasticbased applications ▪ 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 thermoplastic rubber by Purchasing MCT plant in
• Entering the world of recycling engineering materials at the Israeli site, for us and our customers
• Germany
• We have appointed a new manager for the European market for the thermoplastic rubber.

Automotive Irrigation Other

Editorial credit:

Teddy

Leung

/

Shutterstock.com

Main customers

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 Development of innovative products - advanced materials with unique properties

Realization of acquisitions and mergers strategy of manufacturers of engineering thermoplastic compounds in Europe and the USA.

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.

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27

• Potential expedition of the production line.
• Acquisition based on EBITDA ratio X6

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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

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

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Key Growth Engines

newly established plant in the US

Geographic expansion - further penetration to the US market leveraging Maintaining the status of Polyram, as a leading supplier to the automotive industry, with global distribution channels on three continents Innovation – development of new long-fiber-based solutions to the

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

automotive industry

Polyram is one of the top ten suppliers in the global market

Financial Statements

P&L M-ILS

	P&L M-ILS
							2023		2024
	2020	2021	2022	2023	Q1	Q2	Q3	Q4	Q1
EP	378	511	651	576	160	145	148	123	146
Bondyram	206	306	349	327	85	78	78	86	79
Polytron	71	90	104	98	26	25	25	22	27
Sales turnover	655	907	1,104	1,001	271	248	251	231	252
Gross profit	140	201	201	195	45	50	49	51	56
Gross profit margin	21.3%	21.1%	18.2%	19.5%	16.6%	20.2%	19.5%	22.1%	22.2%
R&D expenses	3	3	3	4	1	1	1	1	1
S&M expenses	35	40	46	55	13	13	13	15	15
G&A expenses	13	19	21	22	6	5	5	6	6
Other expenses (income),
net	3	-	3	-	-	-	-	-	-
Operating profit	86	139	129	114	25	31	30	29	34
Operating profit margin
(w/o other expenses)	13.1%	15.4%	11.9%	11.4%	9.2%	12.3%	11.8%	12.6%	13.3%
Financing expenses, net	11	21	11	19	1	1	2	15	4
Income taxes	12	18	13	10	4	4	4	-2	3
Net profit	63	100	104	85	20	25	24	16	27
Net profit margin	9.6%	11.0%	9.4%	8.5%	7.4%	10.1%	9.6%	6.9%	10.7%
EBITDA	113	166	166	153	35	41	40	38	43
EBITDA margin	17.3%	18.3%	15.0%	15.2%	12.7%	16.3%	15.9%	16.2%	16.9%
CAPEX	11	21	*33	35	5	13	7	10	4

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

BS M-ILS

BS M-ILS
	31.03.2024	31.03.2023	31.12.2023
Inventory	268	308	257
Current maturities of borrowings and current borrowings	151	212	106
Borrowings from banks	70	90	75
Equity	639	604	623	Net
	31.03.2024	31.03.2023	31.12.2023
Operating working capital	375	466	341
Net debt to EBITDA	1.10	1.69	0.87

	31.03.2024	31.03.2023	31.12.2023
Operating working capital	375	466	341

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