Kafrit Industries (1993) Ltd.

Investor Presentation • Aug 27, 2023

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.

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.

5

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

8

Milestones

Around the World

Legal Group Structure

Leadership Team

02 PORTFOLIO

The Members of Kafrit Group

150	130	110	20	35	22
Employees	Employees	Employees	Employees	Employees	Employees
22,800 MT	23,100 MT	40,000 MT	25,000 MT	14,300 MT	4,300MT
Capacity	Capacity	Capacity	Capacity	Capacity	Capacity
			Since Q4/2022	70

Employees

16,200MT Capacity

The Members of Kafrit Group

Masterbatches and Compounds for different applications

Agricultural films PE Films Flame Retardants Colors Polycarbonate Business Areas Pipes PEX Compounds for Business Areas Colors Business Areas PEX Compounds for Pipes BOPP Films Business Areas BOPP Films PE Films PP Films Business Areas BOPE PE Films Business Areas BOPP Films Agricultural films Conductive Compounds Colors Business Areas Toll Compounds Special Compounds

Pipes

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

16

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

(*) H1/2023 NIS Value Sales

Among our customers – None of our them > 5%

19

H1/2023 Highlights

Safety Performance

OSHA RECORDABLE INCIDENT RATE

OSHA = #LTA / 200KHours

Sales H1/2023 (MNIS)

Operating Profit H1/2023 (MNIS)

EBITDA H1/2023 (MNIS)

The Financial results were still affected by the softness in the market due to the Macro-economic environment, mainly in Europe

	M-ILS	Change
	2023	2022	2022
Volume Sales (Ton)	45,918	44,160	4.0%
Sales	548.1	555.4	(1.3%)
Materials	360.2	385.3	(6.5%)
Manufacture & Labor	82.6	69.1	19.5%
COST OF SALES	442.8	454.3	(2.5%)
GROSS PROFIT	105.3	101.1	4.1%
	19.2%	18.2%
Sale & Marketing	40.4	36.6	10.5%
General & Admin	27.1	22.7	19.2%
Other expensses	0.3	0.0
Operating Profit	37.4	41.7	(10.4%)
	6.8%	7.5%
EBITDA	57.3	57.3	(0.1%)
	10.5%	10.3%

Consolidated P&L – H1 YTD 2023 vs. 2022 Increasing Sales and maintaining EBITDA

• Despite a challenging business environment, the company managed to maintain strong results as in the first half of last year Delta acquisition drove the volume and value growth
• Maintaining a high margin per kg
• Devaluation of the NIS against the Dollar and the Euro

EBITDA remained stable

Debt increased mainly due to large FA investments

Keeping the profit in the bottom line despite a decrease in the volume of demand in the industry due to the macroeconomic situation

	M-ILS	Change
	2023	2022	2022
Volume Sales (Ton)	22,739	22,336	1.8%
Sales	271.2	291.4	(6.9%)
Materials	180 7	206.6	(12.5%)
Manufacture & Labor	40.7	34.8	17.0%
COST OF SALES	221.4	241.3	(8.3%)
GROSS PROFIT	49.9	50.0	(0.3%)
	18.4%	17.2%
Sale & Marketing	20.0	19.8	0.8%
General & Admin	13.6	11.8	15.7%
Other expensses	0.3	0.0
Operating Profit	16.0	18.4	(13.4%)
	5.9%	6.3%
EBITDA	26.2	26.3	(0.3%)
	9.7%	9.0%

Consolidated P&L – Q2 2023 vs. 2022 Increasing Sales and maintaining EBITDA

• A decrease in total revenues is a result of a decrease in the prices of raw materials
• Delta acquisition drives the volume and value growth
• Maintaining a high margin per kg

Sales (MNIS) – Growth driven by DELTA GER and FOREX

Operating profit (MNIS)

EBITDA (MNIS)

Dividend distribution (MNIS)

*Q2/2023 – As approved in Board of Directors (31/05/2023)

Working together for the future of plastics.