Kafrit Industries (1993) Ltd.

Investor Presentation • Apr 2, 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.

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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

Including Delta Kunststoffe acquired in Oct 2022

Working together for the future of plastics.

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Milestones

Around the World

Legal Group Structure

-GERMANY-

Leadership Team

02 PORTFOLIO

The Members of Kafrit Group

16,200MT Capacity

The Members of Kafrit Group

Masterbatches and Compounds for different applications

Colors

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

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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

(*) Q4 YTD 2022 NIS Value Sales

Among our customers – None of our them > 5%

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2022 Highlights

Safety Performance

Increased number of accidents against the trend and despite efforts and training invested

OSHA = #LTA / 200KHours

Sales (MNIS)

Operating Profit (MNIS)

EBITDA (MNIS)

The 2022 results were affected by the happenings in the business environment

	M-ILS		Change
	2022	2021	2021
Volume Sales (Tone)	85,899	90,176	(4.7%)
Sales	1,063.2	1,028.4	3.4%
COST OF SALES	870.5	835.6	4.2%
GROSS PROFIT	192.7	192.8	(0.0%)
	18.1%	18.7%
Sale & Marketing	77.6	66.1	17.3%
General & Admin	46.0	42.9	7.2%
Operating Profit	66.8	85.2	(21.6%)
	6.3%	8.3%
EBITDA	103.2	115.0	(10.3%)
	9.7%	11.2%

Consolidated P&L – Q4 YTD 2022 vs. 2021 The decrease in quantity affected the bottom line

• Despite the decrease in sales, the company managed to maintain the total trade margin and even increase it thanks to the improvement of the margin per kg
• The main reasons for the decrease in operating profit:
  • An increase in the cost of transportation
  • An increase in the price of electricity
  • Increase in salary expenses (updating salary)
  • increase in depreciation

EBITDA decline was driven by Volume decrease, Energy and Freight costs

Debt increased due to Delta Kunststoffe acquisition

Consolidation of Delta's activity results for the first time helped the company to present similar results to last year

Consolidated P&L – Q4 2022 vs 2021

	M-ILS		Change
	2022	2021	2021
Volume Sales (Tone)	22,464	23,285	(3.5%)
Sales	261.5	268.8	(2.7%)
COST OF SALES	214.2	224.8	(4.7%)
GROSS PROFIT	47.3	44.0	7.4%
	18.1%	16.4%
Sale & Marketing	22.0	17.4	26.5%
General & Admin	12.3	11.7	5.3%
Operating Profit	13.0	16.4	(20.8%)
	5.0%	6.1%
EBITDA	23.3	24.5	(5.0%)
	8.9%	9.1%

The decrease in quantity drove a decrease in EBITDA

• Improvement in the gross profit rate thanks to the increase in the trading margin
• An increase in sales and marketing expenses as a result of the consolidation and an increase in transportation prices in the world

Sales (MNIS)

Operating profit (MNIS)

EBITDA (MNIS)

Dividend distribution (MNIS)

Working together for the future of plastics.