Shemen Yielding Real Estate Ltd.

Investor Presentation • Mar 7, 2024

Investor Presentation

The binding version of the presentation is only the version published in Hebrew.

Disclaimer

This presentation was prepared by Shemen Yielding Real Estate Ltd. (Hereinafter: "the company") and does not in any way constitute an offer to purchase or sell the company's securities or any invitation to receive such offers and it is intended for information purposes only.

The contents of this presentation, in relation to the analysis of the company's activity, constitute a brief summary. In order to attain a comprehensive picture of the company's activity and the risks the company faces, one should review the company's reports, including the board of directors' reports and its financial reports reported through Magna's distribution website (Hereinafter: "the public information"). The information included in this presentation is similar to the public information and does not contain any new data. however, there are data included in the presentation, which are presented in a different manner and/or edited. The information presented in this presentation does not replace the public information. Forecasts, assessments, estimates, data referring to future events whose realization is not certain and is not under the control of the company, forecasts, initiation and establishment of projects constitute forward-looking information, as defined in section 32 A of the Securities Law, and information as described is based only on the company's subjective assessment which was made in good faith, based on past experience and/or the professional knowledge it has accumulated, based on facts and data regarding the current state of the company's business as well as macroeconomic facts and data collected by the company from other sources, all as known to the company at the time this presentation was prepared. The realization or nonrealization of the forward-looking information will be affected, among other things, by the risk factors that characterize the company's activity, as well as the developments in the economic and geopolitical environment, and therefore the results of the company's activity, may differ substantially from the information stated in this presentation.

Who are we?

A yielding real estate company focuses on purchasing and constructing logistics, industrial and storage yielding properties in Israel

Company holdings structure

Company holdings' distribution in shares

Controlling Shareholders

Memorandum Holdings

• Chaim Fink serves as active chairman of the board of Shemen Yielding Real Estate company.
• Memorandum Holdings is a holding partnership owned by Mr. Chaim Fink and his family, who own Shemen since 1997.
• Chaim Fink serves as active chairman of the board of Shemen Yielding Real Estate.
• Mr. Fink is an experienced businessman with a rich track record in the real estate, industry and diamonds sectors.

JTLV Funds

• The JTLV fund was established in 2011 and specializes in the development and betterment of Israeli real estate assets.
• The funds are managed by Amir Biram, Ariel Rotter and Shlomo Gutman who have an extensive experience and rich track record in commercial real estate and the capital market in Israel.
• Throughout the years, 3 of JTLV funds have raised approx. NIS 4 billion.
• Managing assets accumulating to NIS 10 billion.
• JTLV owns a wide variety of commercial assets as well as another public company specializing in the field of residential development and is included in the Tel Aviv 90 index (Donitz-Elad).
• The JTLV Foundation and its team have rich experience in all aspects and phases of real estate projects - from locating and planning, to cooperation with the various authorities and committees, construction and financing to marketing and ongoing management.
• Shemen Yielding Real Estate is JTLV's exclusive operational arm for the purchase and construction of yielding logistics, industrial and storage properties.

Zvika Ben-Zvi

• Zvika Ben-Zvi is a businessman working in the fields of logistics, timber importation and international shipping. Among his various activities, he serves as the founder and owner of the Orshar logistics company, one of the largest and leading logistics companies in Israel, which handles all stages of the supply chain.
• Zvika Ben-Zvi has a rich experience of about 40 years in the establishment, planning and operation of warehouses and logistics centers.
• The Orshar company currently operates warehouses and logistics centers covering a total area of approximately 110,000 square meters (built zones) and plans to expand and operate over the next two years a total built area of 140,000 square meters.
• The company has a wide range of clients, including leading organizations in the fields of Ecommerce, food, retail and many others.

The Company's Management

The company's management

Chaim Fink

Chairman

Dan Sheffi

CEO

Idan Varubel

CFO, Accountant

The JTLV Fund's Management Company

• BA in Economics and Management from Tel Aviv University.
• Served as the JTLV Foundation's business development Director.
• In 2021 established and managed the JTLV Foundation's activities in the logistics and storage centers field. Sheffi has initiated the strategic partnership with Zvika Ben Zvi that eventually merged into Shemen company.
• Took office in January 2024.
• BA in Business Administration and Accounting from the College of Management.
• MBA in Business Administration from Tel Aviv University.
• Previous position finance manager at the JTLV fund since 2017.
• Executive committee services provided by the JTLV managers including Amir Biram and Shlomo Gutman.
• Business development, financial support and planning services.
• Assistance in projects, marketing and renting.

Shemen Yielding Real Estate's vision - to maintain growth and become a leading and significant real estate company in the Israeli market in the coming years, while focusing on the fields of logistics, storage and industrial yielding properties.

Shemen Yielding Real Estate

Advantages and unique value propositions

Professional Specialization

• Management and controlling group with a significant track record in the field of real estate and in particular in industrial, logistics and storage properties.
• Proven professional abilities by all the controlling shareholders of the company.
• Locating, planning, marketing, and renting professional logistics centers.
• Experience in the capital market.

Financial Strength

• A significant and unleveraged volume of assets in the amount of approximately NIS 700 million.
• A strong basis for significant future development, while maintaining financial strength.
• A unique company traded on the stock exchange focused on logistics, industrial and storage yielding properties.
• Owns quality properties in strategic locations and nationwide.
• Connections and partnerships with all sectors, while leveraging unique advantages.

Changes in consumerist culture created an increased demand for goods and products in the various trade branches and contributed to the development of the sea ports in Israel (the opening of the Chinese port and the expansion of the Ashdod port). This development requires the development of all port activities - near and far.

Business

Environment

The changes in consumerist culture were characterized, among other things, by an increase in online and e-commerce activity - which require an ever-increasing logistics infrastructure.

The fact that Israel has the fastest population growth rate among developed countries, necessitates the constant development of yielding real estate that supports the Israeli economy's growth engines.

The geopolitical changes in our regions support the existence of a strong local industry and a constant stock of basic and emergency products, which require the permanent availability of yielding industrial and storage real estate.

Company Properties

Shemen Compoud | Haifa

Shemen Compoud Haifa port's central platform (Carmel) Entrance to the "Cargo Gate" port Area Approx. 86,000 sqm Planning Intended for development which will fulfill the potential as a logistic hub/ port hinterland Status Yielding Company Share 100% Purchase date Historical, used for the Shemen Factory 15

Shemen Compoud | Haifa

Private land - a unique and rare commodity in the port's first line.

The Haifa port area is developing significantly in regards to the supply chain and logistics centers due to the developing infrastructure in the area, the sale of the Haifa port to private hands, the establishment of the bay port and more.

The company intends to develop the complex for port back-end uses including logistics.

Today, the evacuation procedures of the industrial facilities that were used by the Shemen plant are completed, which will allow to maximize the rent.

Ashdod

Area	25,000 Approx. sqm
Planning	Establishment of an automated logistics center extending over approx. 32,000 square meters
Status	Awaiting a construction permit
Company share	100%
Purchase date	Before the merger

• Private land.
• The property was fully pre-leased to Orshar for a long period.
• Occupancy projections 2026.

Ariel Industrial Zone | Project A

Area	Approx. 37,500 sqm
Planning	25,000 sqm logistics area 11,000 sqm of ancillary commercial zone
Status	Detailed planning phase
Company share	60%
Purchase date	Before merger

• Transportation accessibility via Route 5.
• Attractive location in Israel's center, with cheap labor available, tax benefits, grants, etc. for potential tenants.
• The project planning emphasizes the utilization of the land's topography and adaptation to the uses of the relevant logistics and commercial zones.
• The complex arouses significant interest among potential tenants.

Ariel Industrial Zone | Project B (gas station)

Area Approx. 14,000 sqm

Planning	Active gas station + commercial spaces and associated open spaces
Status	NIS 1.05 Yielding million* (the company's share)
Company share	60%
Purchase date	30/07/2023
Transaction completion date***	30/11/2023

• * The gas station and the commercial zones are currently yielding
• ** Not including the additional lots, as described bellow
• *** One last payment is due to February 2025
• The land is located next to the additional company owned land, and is owned by the same group of partners.
• The gas station is leased until 2032, while the additional commercial areas are leased to several tenants for variable lease periods.
• In addition, in the complex consists of another lot on an area

Ofakim Logistics Center

Area	45,000 Approx. sqm
Planning	Future planning
Status	In development by the municipality, delivery to the company is expected during 2024
Company share	100%
Purchase date	Before merger

• The land is located in the new "Afiki Nahal" employment and industrial area.
• Purchased as part of a tender by the Israel Land Authority.
• A strategic location on the new route 2411, which brings Ofakim closer to Beer Sheva to the extent of a less than 20 minute drive and to other major traffic routes in the area.
• There are many building rights on the land for the establishment of logistics centers and numerous additional

Gvat Kibbutz

Area	32,000 Approx. sqm
Planning	16,000 square meters for industry and storage
Status	Currently in planning procedures and proprietary regulation with the Israel Land Authority
Company share	50%
Signing date	05/09/2023

• This project is in a level B national priority area, close to major traffic routes in the area, as well as near the Ramat David air field.
• The company intends (together with the kibbutz) to purchase the land from the Israel Lands Authority and advance the immediate planning of the project.

Albad Dimona

Area	31,000 Approx. sqm
Planning	14,530 sqm. built area
Status	Yielding
NOI Forecast	3.16 NIS million (the company's share)
Company share	50%
Signing * date	21/12/2023

* This transaction is subject to the fulfillment of pre -conditions.

• In partnership with the Albad company.
• The factory is located in the Dimona industrial zone.
• The property is leased to Albad for a long period.
• There are additional building rights on the land.

Financial Data

Financial data (thousands of NIS)

As of 30.9.23

Cash and financial assets	64,478
Assets value (Real estate)	708,811
Equity	687,316
Capital to balance sheet ratio	87.4%
Equity excluding deferred taxes	767,643

As of September 30, 2023, the company's leverage ratio is close to zero

An industry demonstrating a constant growth trend due to population growth and changes in consumption habits.

Controlling shareholders and staff with numerous and varied abilities and extensive experience in the real estate market in general and logistics in particular, as well as in the capital market.

Conclusion

Financial management

Significant financial strength.

Geographical distribution

A wide distribution of quality properties in strategic locations.

Significant expansion of the activity in the coming years by developing the existing assets and locating profitable assets and opportunities in the field.