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 7th 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.

Since November 8th, the 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

We are here

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.

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

Milestones

Around the World

Legal Group Structure

Leadership Team

(*) Members of the Extended Leadership team

02 PORTFOLIO

How our portfolio developed since 2020?

The Members of Kafrit Group

Masterbatches and Compounds for different applications

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

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

1-12.2023 NIS Value Sales, before 2024 acquisitions

Among our customers – None of our them > 5%

ANNUAL 2023 PERFORMANCE HIGHLIGHTS

1-12/2023 Highlights

84MNIS

OPERATING PROFIT

EBITDA 130MNIS

Strong Financial results despite the softness in the market due to the Macroeconomic environment, mainly in Europe

Consolidated P&L – 1-12 YTD 2023 vs. 2022

Sales 1-12/2023 (MNIS)

Operating Profit 1-12/2023 (MNIS)

EBITDA 1-12/2023 (MNIS)

Free Cash-Flow 1-12/2023 (MNIS)

(*) 2021 Results were affected by Supply Chain crisis under Covid-19 business environment – mainly with increased inventories

EBITDA increased due to strong Volume Growth and Forex

63 MNIS of Free Cash Flow was partially set-off by ABSA 2024 January acquisition

Safety Soft Performance with Higher number of Minor LTI's

OSHA RECORDABLE INCIDENT RATE

Market Trends - Public Companies in the Industry

		2023	2022	2021	vs YAG
Kafrit Group	Sales (Million NIS)	1,123	1,063	1,028	6%
	Sales and other operating revenues (MillionS)
Lyondell Basell	Total Company	41,107	50,451	46,173	-19%
	Advanced Polymer Solutions (APS)	3,695	4,202	5,145	-12%
	Total Revenue (Million\$)
Avient	Total Company	3,143	3,396	3,316	-7%
	Color, Additives and Ink	2,007	2,355	2,402	-15%
	Sales (Million Euro)
BASF	Total Company	68,902	87,327	78,598	-21%
	Materials	14,149	18,443	15,214	-23%
	Net Sales (Million\$)
DOW	Total Company	44,622	56,902	54,968	-22%
	Packaging and Special Plastics	23,149	29,260	28,128	-21%
	Sales (Million Euro)
Covestro	Total Company	14,377	17,968	15,903	-20%
	Performance materials	6,876	9,095	8,142	-24%
	Net Sales (Million\$)
Chemours	Total Company	6,027	6,794	6,345	-11%
	Advanced Performance Materials	1,443	1,618	1,397	-11%
Cabot	Adjusted Sales (Million\$)	3,931	4,321	3,409	-9%
Arkema	Adjusted Sales (Million Euro)	9,514	11,550	9,519	-18%
Polyram	Sales (Million NIS)	1,001	1,104	907	-9%

		2023	2022	2021	vs YAG
Kafrit Group	EBITDA (Million NIS)	130	103	ਹ ਹੈ ।	26%
		11.6%	9.7%	11.2%
	EBITDA before Impariment (Million\$)
	Total Company	5,222	6,527	9,313	-20%
Lyondell Basell		12.7%	12.9%	20.2%
	Advanced Polymer Solutions (APS)	90 2.4%	115 2.7%	409 7.9%	-22%

	EBITDA (Million\$) Total Company	502	592	600	-15%
Avient		16.0%	17.4%	18.1%
	Color, Additives and Ink	358	402	409	-11%
		17.8%	17.1%	17.0%
	EBITDA before special itmes (Million Euro)
	Total Company	7,671	10,762	11,352	-29%
BASE		11.1%	12.3%	14.4%
	Materials	1,650	2,686	3,162	-39%
		11.7%	14.6%	20.8%
	EBITDA (Million\$)
	Total Company	5,389	9,348	12,375	-42%
DOW		12.1%	16.4%	22.5%
	Packaging and Special Plastics (EBIT)	2,700 11.7%	4,110 14.0%	2,282 8.1%	-34%
	EBITDA (Million Euro)
	Total Company	1,080	1,617	3,085	-33%
Covestro		7.5%	9.0%	19.4%
	Performance materials	576	ਰੇਟ ਹ	2,572	-39%
	Adjusted EBITDA (Million\$)
	Total Company	1,014	1,361	1,313	-25%
Chemours		16.8%	20.0%	20.7%
	Advanced Performance Materials	273	367	284	-26%
		18.9%	22.7%	20.3%
Cabot	Adjusted EBITDA (Million\$)	દર્ભરે	728	652	-5%
		17.7%	16.8%	19.1%
Arkema	Adjusted EBITDA (Million Euro)	1,501	2,110	1,727	-29%
		15.8%	18.3%	18.1%
Polyram	EBITDA (Million NIS)	153	166	166	-8%
		15.3%	15.0%	18.3%

³³ Source: Financial Reports of Public Companies; Benchmark from Public Financial Reports (Unaudited)

Q4/2023 PERFORMANCE HIGHLIGHTS

Historically Quarterly Record Results improving in all Financial parameters despite a demand decrease in the industry due to the Macro-economic situation

Consolloated P&L - Q4 2023 VS. 2022
	M-ILS	Change
	2023	2022	2022
Volume Sales (Ton)	23,608	22,462	5.1%
Sales	277.7	261.5	6.2%
Materials	177.8	177.8	(0.0%)
Manufacture & Labor	39 7	36.4	9.2%
COST OF SALES	217.5	214.2	1.5%
GROSS PROFIT	60.2	47.3	27.3%
	21.7%	18.1%
Sale & Marketing	20.8	22.0	(5.6%)
General & Admin	16.0	12.3	30.4%
Other (income) expenses	(0.9)	0.0
Operating Profit	24.3	13.0	87.1%
	8.7%	5.0%
EBITDA	37.4	23.7	57.6%
	13.5%	9.1%