Polyram Plastic Industries Ltd.

Investor Presentation • Nov 9, 2023

Company Presentation

November 2023

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 2022, third 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.
• 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.
• 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 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.
• 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 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

Confidential

1,400 products Sophisticated manufacturing processes Tailor Made solutions Over 950 customers Three operating divisions: • Bondyram • Engineering Plastics (EP) • Polytron Established in 1986 Financial Data (ILS in millions) Polyram is a global solution provider, manufacturer and marketer of advanced functional raw materials for the plastic industry worldwide Q3.2023 Q2.2023 Q1.2023 Q4.2022 Revenues 251 248 271 238 Net Income 24 25 20 14 EBITDA 40 41 35 28

Management

Netanel Guez

CFO 7 years

Dror Zur CPO 37 years

Idan Rephaeli COO 5 years

Amit Koren Local Market Manager

2 Years

ZivHerling Bondyram Manager and VP Global Sales 22 years

Eliyahu Katan Bondyram TL Manager 9Years

Gabriela Marziparo Polytron Manager 12Years

Efrat Gilat EP Export Manager New board member

Ofir Kayam EP category sales specialist 10Years

YaaraAvrahami Quality Manager 23Years

The Plastic Industry - Value Chain

CEO Highlights

6

Polyram's status since the start of the War

On Monday, October 9, 2023, two days after the start of the war, we promptly reached to all our customers worldwide and reassured them that our two production sites in Israel are operating smoothly without interruptions, 24/7. We continuing communication with our customers keeping them inform.

The company has not encountered any shortages in the procurement of raw materials or difficulties with importers. Most of our suppliers continue working with us regularly.

The company manufactures future orders and sends inventory to warehouses abroad.

The company operates in six production sites worldwide, which allows for operational flexibility in production and marketing. About 50% of production takes place at the company's sites abroad.

The company maintains an open line of communication with customers worldwide, keeping them informed about our current situation while continuing to supply as usual.

In the second week of the war, the company exhibited at the largest plastics exhibition in Germany, including a delegation from Israel.

CEO Highlights - continued

The company presented a strong cash flow from operating activities since the beginning of the year in the amount of approximately NIS 192 million.

The company declared a dividend in the amount of NIS 10 million.

Results of the third quarter of 2023 are very similar to the results of the second quarter of 2023, despite the traditional seasonality of the third quarter, which represents a continuation of the improvement in results since the fourth quarter of 2022.

The slowdown in the local market continues.

Continued the trend of maintaining gross profit margin of around 20%.

A significant decrease in the extent of company's debt approximately NIS 118 million, alongside continued dividend distribution and investment in CAPEX.

The company is exploring growth opportunities through acquisition of companies in the United States, Europe, and India.

Two of the new projects we won, which are expected to generate NIS 50 million in 2024, began operating during the period.

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-Polyram MCT produces two major products with recycled 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

Polyram - Milestones

Revenues in millions of \$

Subsidiary revenues in millions of \$

Diversification and risk reduction

20% 20% Automotive* Water & Irrigation Others: DIY Office supplies Robotics Electronics Recycled Plastic Construction Food Packaging 40% 20% 20%

End Markets Product Lines

Diversification and risk reduction

Geographic Diversification 79% Export

Customer Diversification

Biggest customer < 5% of total revenue

20 of the Biggest customers = only 40% of total revenue

Direct sales to end producers > 87%

98% > Of the company's customers are covered by full credit insurance

Sales - USD (M) & Quantities (K)

Maximum annual production capacity ~137,850 Tons

Current available capacity for growth ~70%

In order to meet the anticipated demand in the upcoming years,

there was an significant investment during 2021-2022 to increase production capacity and operational efficiency.

In the first half of 2023, two more production lines are operating increase of approximately 7,000 tons of production capacity.

The company will invest in a production line in the Polytron field for its US factory,

in order to provide demands in the new project.

Bondyram

Products and Applications

Chemicals Packaging

Pharma and Cosmetics Packaging Construction Food Packaging

18

Main customers

Growth Engines and Growth potential

Tie Layers

Successful penetration to 3 major customers in the US Food packaging industry

Developing new market segments such as the transportation of liquids for infrastructure and construction activities

Expanding marketing and sales channels to increase market share in selected territories such as China, India and Southeast Asia.

5 large key suppliers supply 80% of the total global market of Tie Layers

Total global market is estimated at ~\$1.3 billion USD and still growing

Coupling Agents and Impact Modifiers

• Coupling Agents –solutions to couple between different polymers and glass-fibers
• Impact Modifiers –provide compounds with special functionalities

Products and Applications

20

Main customers

Coupling Agents and Impact Modifiers

Polyram is a global leader in these product lines

Development of innovative products through the R&D department for unique applications

Total global market is estimated at ~\$500 million and still growing

After five year development process, Polyram launched an innovative Impact Modifier for the US market

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 recycling engineering materials at the Israeli site, for us and our customers
• Entering the world of thermoplastic rubber by Purchasing MCT plant in Germany
• We have appointed a new manager for the European market for the thermoplastic rubber.

Confidential

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

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

Development of innovative products - advanced materials with unique properties

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.

27

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

Center console

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
• Q4/2023- Establishing a Third production line in the US
• Winning two major projects in the USA

Polytron revenues (Millions \$) 2015-2022

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

Key Growth Engines

Geographic expansion - further penetration to the US market leveraging newly established plant in the US

Maintaining the status of Polyram, as a leading supplier to the automotive industry, with global distribution channels on three continents

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

Innovation – development of new long-fiber-based solutions to the automotive industry

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

Financial Statements

P&L M-ILS

				2022				2023
	2020	2021	2022	Q1	Q2	Q3	Q4	Q1	Q2	Q3
EP	378	511	651	169	183	159	140	160	145	148
Bondyram	206	306	349	83	106	88	72	85	78	78
Polytron	71	90	104	25	29	24	26	26	25	25
Sales turnover	655	907	1 104 ,	277	318	271	238	271	248	251
profit Gross	140	201	201	52	61	50	38	45	50	49
profit Gross margin	21 3%	21 1%	18 2%	18 6%	19 1%	18 5%	16 0%	16 6%	20 2%	19 5%
R&D expenses	3	3	3	1	1	1	1	1	1	1
S&M expenses	35	40	46	9	11	11	14	13	13	13
G&A expenses	13	19	21	5	5	4	6	6	5	5
Other expenses (income) ,
net	3	-	3	3	-	-	-	-	-	-
profit Operating	86	139	129	34	44	34	18	25	31	30
profit Operating margin
(w/o other expenses)	13 1%	15 4%	11 9%	13 1%	13 7%	12 5%	4% 7	9 2%	12 3%	8% 11
Financing expenses, net	11	21	11	-	1	10	1	1	1	2
Income taxes	12	18	13	6	7	-2	2	4	4	4
profit Net	63	100	104	28	36	26	14	20	25	24
profit Net margin	9 6%	11 0%	9 4%	10 1%	11 3%	9 6%	5 8%	7 4%	10 1%	9 6%
EBITDA	113	166	166	44	52	42	28	35	41	40
EBITDA margin	17 3%	18 3%	15 0%	15 7%	16 4%	15 7%	11 6%	12 7%	16 3%	15 9%
CAPEX	11	21	*33	*4	9	6	14	5	13	7

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

Selected data from BS M-ILS

	30.09.2023	30.09.2022	31.12.2022
Inventory	281	399	372
Current maturities of borrowings and current borrowings	147	259	242
Borrowings from banks	81	92	92
Equity	637	587	594

	30.09.2023	30.09.2022	31.12.2022
Operating working capital	407	518	499
Net debt to EBITDA	1.31	1.84	1.84

1.31X

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