Tadiran Group Ltd.

Investor Presentation • May 17, 2023

Company Presentation May 2023

Forward looking information

This presentation was prepared by Tadiran Group Ltd. (Previously: Tadiran Holdings Ltd.) (hereinafter: "the Company" and / or the "Group" and / or "Tadiran") as a general presentation about the Company and is not intended to replace the need to review the Company's full reports to the Securities Authority and the Stock Exchange. Value in Tel Aviv Ltd. including, inter alia, the Company's periodic reports including the Company's periodic report for 2022, first quarter 2023 and immediate reports (hereinafter: "Company Reports") that must be reviewed prior to making a decision regarding investment in the Company's securities.

The information contained in the presentation does not constitute advice, recommendation, opinion regarding investment, does not constitute an offer to invest and / or purchase securities of the Company (and in particular does not constitute an "offer to the public" or "sale to the public" of any kind) and does not replace 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 the Company in relation to these issues and does not include the full results and financial information of the Company and the notes to them, and / or the Company's business plans and / or the Company's risk factors.

The presentation includes data on international markets, including growth volumes, penetration rates, and sales, statistics, etc. It should be emphasized that this data is based on public data and the Company'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, subjective assessments by the Company's management as of the date of publication of the presentation, which although the Company 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, affected by factors beyond the control of the Company, each of which, or a combination thereof and the realization of which risk factors characterize the Company's activities, may materially impair results. The activities of the Company and 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 the Company, the Company 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 the Company'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.

Without detracting from the generality of the above, the information contained in the presentation, inter alia, regarding the Company's working principles, the Company's business plans in connection with Air Care O2 technology, expansion of energy activity, product marketing and development, growth potential and revenue distribution in the coming years, is forward-looking information based and derived, inter alia, on the Company's goals.

The Company's assessments regarding the Company's objectives are based, inter alia, on the Company's assessments regarding trends in the Company's business in particular and trends in the market in which the Company operates in general, as well as the Company'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 the Company's assessments, inter alia, as a result of factors external to the Company and which are not under control, including, inter alia, changes in the economic situation in Israel in general Different from those that the Company's management estimates as of the date of this report, the non-realization of the potential penetration into international markets in general, and in particular those listed above, regulatory changes and the realization of some of the risk factors described in the Company reports, continued potential effects. These assessments may not materialize and / or materialize significantly differently from the Company's assessments, inter alia, as a result of factors external to the Company and which are not under control, including, inter alia, changes in the economic situation in Israel in general and in the market in which the Company operates in particular, development of new and / or different trends from those that the Company's management estimates as of the date of this report, failure to penetrate international markets in general, and in particular those listed above, regulatory changes and the realization of risk factors described in the Company's reports, the continuation of potential effects of the corona crisis and so on.

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.

The future is already here

Company vision

"Enable a better living environment through renewable energy, a comfortable climate and healthy air."

ID

conditioning in Israel for over 60 years

(including production and service)

energy market

• doubling sales to approximately NIS 4.5 billion

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The information regarding the growth target in accordance with the company's strategic plan is forward-looking information as defined in the Securities Law based, among other things, on the group's goals as of this date, its assessments of the trends in the group's business in particular and the trends in the market in which the group operates in general, as well as the group's management's assessments regarding potential and trends in the areas of the group's activity as of this date. These estimates may not materialize and/or materialize in a materially different manner from the group's estimates, among other things, as a result of factors external to the company and which are beyond its control, including, among other things, changes in the state of the economy in Israel and the world in general and in the markets in which the company operates in particular, the development of new trends and/or different from what the group's management estimates as of this date, changes in demand for the group's products and the realization of which of the risk factors described in the company's reports.

technicians

Tadiran's Development Over the Years

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Leading tomorrow

Tadiran Group

heating solutions.

Comprehensive solutions in the field of air conditioning

For over 60 years we have been providing quality products and solutions for air conditioning and household consumer products. Throughout all these years we have been striving for technological innovation and strengthening of local production while enabling millions of Israelis to enjoy quality air conditioning all year round.

We have made it our goal to create an ongoing positive impact on health and quality of life through air treatment and upgraded living spaces. Simultaneously, we strivetolistentocustomerneeds, consider

the various environmental factors, and work towards innovative, advanced and environmentally friendly solutions.

A Variety of green solutions

The Group offers a wide range of air conditioning products for both the private and commercial markets. Via the company's website, you can determine the air conditioner that suits the space and the character of the building. An air conditioning solution must be properly adapted to the customer's needs, in part to enable it to function efficiently and with minimum energy use.

Completed development of Tadiran Airow 3 TM

Air purification technology

Patented Technology International patents: Automatic selfcleaning mechanism and usage method

Maintenance-free No maintenance or additional cost

Action Indicator Built-in monitoring cycle to indicate operation with lowenergy consumption

Ozone Free

Verified to meet the ozone requirements of standard UL 867 and approved by CARB

Action Indicator Continues its air purification action even after the air conditioner is turned off

Plug & Play Easy to install in ducted air conditioning systems

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Laboratory tests found that the TADIRAN AIROW 3™ technology eliminated up to 99.93% of known airborne pathogens, including the SARS-Cov-2 coronavirus and other viruses and bacteria, in a 1 cu. m. space, under the test conditions. TADIRAN AIROW 3™ has been proven to be effective in reducing the presence of the MS2 virus (a surrogate that simulates the coronavirus) as an aerosol and also the airborne staphylococcus epidermidis bacterium by about 99.93% within 60 minutes (in an experiment inside an 18 m3 chamber). The apparatus is not a medical device. Tadiran does not claim that TADIRAN AIROW 3™ guarantees that someone using the device will not be exposed to biological pathogens. Customers must continue to adhere to guidelines of public health organizations and qualified medical officials regarding measures to prevent infection.

Solar systems in Israel one stop shop

Solar panels

Authorized distributor of - a leading international panel manufacturer.

Optimization systems

Converters, optimizers, monitoring devices. The company is a leading distributor of converters

Mounting systems

Import raw materials and produce systems according to drawings for customers

Tadiran Energy Solutions

Tadiran is expanding its footprint in the storage market

In 2022 entered into agreements for the supply of storage systems in the value of

\$215^m

EV charging

Smart Charge system for managing electric vehicles charging

Energy management for maximum and smart utilization of the electricity supply in the building

Automatic, easy, transparent and professional collection management (billing).

Smart stations for charging AC, DC vehicles

The company's activity in the field of electric vehicle charging management is carried out through a private company held by a wholly owned subsidiary (51%) and by third parties (49%). At this stage, the scope of the activity is not material. 13

Solar Systems in Europe - one stop shop

Solar panels

Authorized distributor of Qcells, Jinko, and others – Global panel manufacturers

Mounting systems

Import and distribution of ready-made mounting systems

Energy conversion systems

Converters, optimizers. The company distributes products of SolarEdge, Huawei and others

Heat pumps

Distribution of heat pumps from the leading manufacturers - Daikin, LG and others

Energy storage

Authorized distributor of BYD, LG, and others

EV charging

Distribution of products for charging vehicles - Mennekes, Wallbox and others

Company's assets and capabilities

Advanced technology supplier

Converters, panels and storage systems from the best manufacturers in the world

Relationships with customers

Customer relationships with many segments over the years based on the company's reputation

Professionalism

High-quality professionals with a high sense of service

Financial results

(NIS in millions)

	Q 1	Q 1	Change
	2023	2022
Revenues	435.1	505.6	-14 %
Gross profit	74.1	101.9	-27 %
Gross margin	17 %	20 %
Operating profit	66.5	52.7	26 %
Operating margin	15 %	10 %
EBITDA	31.6	61.7	-49 %
EBITDA margin	7 %	12 %
Profit before tax	62.9	53.5	18 %
PBT margin	14 %	11 %
Net profit	43.2	39.3	10 %
Net margin	10 %	8 %
Comprehensive income	63.5	34.6	84 %
Comprehensive income margin	15 %	7 %
Cash flow from operations	24.7	29	-15 %

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