Turpaz Industries Ltd.

Investor Presentation • Aug 20, 2023

Investor Presentation

August 2023

Disclaimer

This presentation was prepared by Turpaz Industries Ltd. (the "Company") for the sole purpose of conveying information regarding the Company and its subsidiaries (together with the Company "Turpaz Group"). This presentation does not constitute, or form part of, an offer to sell, or a solicitation of an offer to purchase any securities of the Company and is intended to provide information only. This presentation is not intended to replace the need to review the Company's full reports to the Securities Authority and the Tel Aviv Stock Exchange Ltd. including, inter alia, the Company's periodic and immediate reports (hereinafter: "Company Reports") prior to making a decision regarding investment in the Company's securities.

In addition, this presentation cannot replace investment consulting by a lawfully licensed investment consultant.

This presentation includes statements data, forecasts, goals and Company plans that are "forward-looking statements", as defined in the Securities Law - 1968, whose occurrence is not certain, and which are not solely in the Company's control.

These forward-looking statements are included, inter alia, in discussions of strategy, objectives, goals, plans, events, future intentions or other information relating to future events or issues whose occurrence is not certain.

By their nature, forward-looking statements involve risk and uncertainty. Whether the forward-looking information occurs or not is affected, inter alia, by risk factors characteristic to the Company's operations and developments in the general environment and external factors which impact the Turpaz Group and its area of activities.

Subject to the requirements of applicable law, the Company does not intend to update any industry information or forward-looking statements appearing in this presentation and is not required to publish any additional presentations for its shareholders in future.

Turpaz - A Leading Global F&F Company

H1 2023 Highlights (US \$)

Sales \$ 61.5M + 6.6% Sales growth (2.7%) Organic	Gross Profit \$ 23.0M + 3.0% growth	Adjusted EBITDA \$ 12.6M (5.2%)
Sales were impacted by continued customer destocking, driven by global interest rate increases and market economic uncertainties	Gross profit increased mainly due to the increase in sales. Profitability declined primarily due to an organic sales decrease compounded by fixed expenses, rising energy prices, and increased payroll costs	The change in adjusted EBITDA stems mainly from the organic decline in sales

Q2 2023 Highlights (US \$)

Sales \$ 30.6M + 1.1% Sales growth (6.6%) Organic	Gross Profit \$ 11.2M (3.8%)	Adjusted EBITDA \$ 6.0M (13.8%)
Sales were impacted by continued customer destocking, driven by global interest rate increases and market economic uncertainties	Profitability declined primarily due to an organic sales decrease compounded by fixed expenses, rising energy prices, and increased payroll costs	The change in adjusted EBITDA stems mainly from the organic decline in sales

Growth – H1 2023

Adj. EBITDA (M US \$)

(*) based on the company's internal reporting

(**)Adj. EBITDA - earnings before interest, taxes, depreciation, and amortization neutralization of one-time expenses of acquisitions and structural change.

6

Growth – Q2 2023

Adj. EBITDA (M US \$)

(*) based on the company's internal reporting

(**)Adj. EBITDA - earnings before interest, taxes, depreciation, and amortization neutralization of one-time expenses of acquisitions and structural change.

H1 2023 Segments Performance

		Net Sales	Operating Profit*
In K US \$ / %	H1 2022	H1 2023	H1 2022	H1 2023
Fragrance	13,066	16,107	3,936 30.1%	3,693 22.9%
Taste	29,420	31,807	4,400 15.0%	4,275 13.4%
Specialty Fine Ingredients	15,224	13,712	4,208 27.6%	3,011 22.0%

*Operating profit was impacted by organic sales decrease from customer destocking, alongside fixed expenses, rising energy prices, and increased payroll costs.

Q2 2023 Turpaz – Consolidated

In K US \$ / %	Q2 2022	Q2 2023
Sales	30,305	30,626
Gross Profit	11,660 38.5%	11,215 36.6%
Operating Profit	4,954 16.3%	3,680 12.0%
Adjusted EBITDA	6,990 23.1%	6,026 19.7%

Q2 2023 Fragrance

In K US \$ / %	Q2 2023 Q2 2022
Sales	+15.1% 7,074 8,139
Operating profit	2,143 2,111 30.3% 25.9%
Organic	(5.6%)
Acquisitions	Klabin
Highlights	The increase in sales stems from the acquisition of Klabin in the fourth quarter of 2022. Organic decrease arises from an increase in orders placed in the first quarter of 2023, which experienced an organic growth of 15.0%, impacting the second quarter. Operating profit was influenced by an operational streamlining plan in USA, involving non-recurring expenses due to the closure of Turpaz USA site and relocating of manufacturing, development, and sales operations to Klabin's site.

Q2 2023 Taste

12

In K US \$ / %	Q2 2023 Q2 2022
Sales	(3.5%) 16,222 15,662
Operating profit	2,657 1,415 16.4% 9.0%
Organic	(9.4%)
Acquisitions	Aromatique Food
Highlights	Sales decrease is mainly attributed to SDA, as intensified market competition and entry of new players into the market prompted the company to reduce sales to low-profitability customers, coupled with destocking among customers.

Q2 2023 Specialty Fine Ingredients

In K US \$ / %	Q2 2022	Q2 2023
Sales	(1.4%) 7,009	6,911
Operating profit	2,010 28.7%	1,675 24.2%
Organic	0.1%
Highlights	Sales mainly affected by customer destocking, and exchange rate impact. The change in profitability was driven by higher
	raw materials prices, coupled with fixed operating costs.

P&L

K US \$	2022	Q2 2022	Q2 2023	H1 2022	H1 2023
Revenues	118,556	30,305	30,626	57,710	61,540
Gross Profit	47,659	11,660	11,215	22,364	23,034
Gross Profit %	40.2%	38.5%	36.6%	38.8%	37.4%
R&D Expenses	3,607	717	1,203	1,502	2,297
Sales & Marketing Expenses	10,016	2,171	2,573	4,514	5,099
Management & General Expenses	15,055	3,837	3,631	6,864	7,494
Other Expenses (Income)	(8,349)	(19)	128	(27)	304
Operating Profit	27,330	4,954	3,680	9,511	7,840
Operating Profit %	23.1%	16.3%	12.0%	16.5%	12.7%
Adj. Operating profit (*)	19,153	5,065	3,785	9,727	8,117
Net Profit	21,331	4,239	2,512	8,199	5,519
EBITDA	35,039	6,879	5,921	13,092	12,343
Adjusted EBITDA	26,862	6,990	6,026	13,308	12,620
Adjusted EBITDA %	22.7%	23.1%	19.7%	23.1%	20.5%
Cash flow from operation	31,938	(4,259)	4,953	1,109	218

* Adjusted to reflect operating profit without non-recurring expenses or income.

Balance Sheet

K US \$	31/12/2022	30/6/2022	30/6/2023
Assets
Current Assets	89,913	91,769	72,370
Non-Current Assets	124,267	95,954	132,232
Total Assets	214,180	187,723	204,602
Liabilities & Equity
Current Liabilities	46,674	35,437	33,202
Non-Current Liabilities	63,981	63,137	66,842
Equity	103,525	89,149	104,558
Total Liabilities and Equity	214,180	187,723	204,602
Ratio
Working Capital to Sales	26.1%	24.6%	32.5%
Cash and Cash Equivalent	35,675	31,476	14,964
Net Cash (Net Debts)(*)	19,107	16,039	6,989
Equity to total balance sheet	48.3%	47.5%	51.1%

Turpaz's strong equity structure, low leverage, cash flow from operations, funding availability and the strengthening of management and managerial infrastructures enable the implementation of the group's combined growth strategy.

(*) Debts = Short and long-term loans from banks and other.

Proven Acquisitions Track Record

Multinational Company