NRGene Technologies Ltd.

Business and Financial Review • Dec 11, 2022

INDEPENDENT EQUITY RESEARCH

NRGENE TECHNOLOGIES LTD - UPDATE REPORT 11.12.2022

Expanding the business model in intellectual property development transactions against income from end products; first project in the collaboration with the Granot Group; stock price target remains unchanged.

NRGene Technologies Ltd (TASE: NRGN) is an AgTech company engaged in research and development of technology in the field of artificial intelligence, including software tools, to analyze genetic information based on Big Data. The overarching goal is to accelerate and improve natural development of crops and animals in the global agriculture and food industry.

Key events in Q3 2022:

• Development of intellectual property: The company's engagement (including financing in the amount of approximately 2 million dollars) through the company's wholly owned subsidiary in Canada, in a first cooperation agreement with the Granot Group, a major player in the field of animal feed production in Israel, for the development of elite varieties of fodder plants to be used as feed for dairy cows.
• Genetic Testing (genotyping): as of the publication date of H1 2022 report, engagement with a number of new clients in the scope of engagements in a total amount of approximately 1.1 million dollars (a rate of twice as much as in 2021).
• Services and software subscription model: continued support for existing customers for the benefit of strategic collaborations.

Strategy - The company continues to implement the change in the business model, in the way it acts as a one stop shop for all the genomic needs of plant and animal breeders as a partner (and not only as a service provider) in the entire process of developing the varieties, including ownership (exclusive or joint) of the intellectual property ( in a model similar to the model in which drug development companies operate). We believe that NRGene is well positioned for growth due to its revenue growth potential, customer base, knowledge and new business model.

Bottom line – The company operates according to an orderly strategic plan including changing the business model and has begun expanding the business model in intellectual property development transactions against revenue from end products, within the framework of the cooperation agreement with the Granot Group. In our view, the transaction has significant leverage both due to the expected revenues and due to the proof of feasibility for the company's business model, in which a significant factor invests in financing the project for the sake of a partnership with the company.

Lead Analyst Dr. Tiran Rothman Equity.Research@frost.com Tel.: +972-9-9502888

NRGENE TECHNOLOGIES LTD

11.12.2022

Key events in Q3 2022 and as of the publication of this report:

On August 11, 2022, NRGene Canada, the Company's wholly owned subsidiary in Canada initiated its first collaboration project with the Granot Group for the development of seedlings for dairy cattle feed.

The dairy cattle feed market was worth USD 68.5 billion in 2021 and is estimated to reach USD 78.3 billion by 2026. Based on the value of grains for seedlings per cow (USD 1/day), a 1% market share consisting of approximately 300,000 cows would generate USD 110 million in annual revenues. At first, the commercialization of the project will focus on the European and North American markets, which together comprise 30 million dairy cows.

In the first phase, the Company will apply its AI solution to locate suitable wheat varieties for sprouting and developing elite varieties based on the selected varieties. After the end of the development phase (expected in 2024), the parties will work to establish a joint venture (50-50%), which will own IP that will be developed as part of the collaboration. Also, the joint company will be responsible for the production of grains and their commercialization to vertical farming facilities around the world to be grown as sprouts.

The Granot Group will contribute a financing amount of USD 2 million and, in return, will be entitled to exclusive distribution rights in Israel and other territories, subject to commercial terms agreed upon between the parties. The parties also agreed to examine in the future the suitability of additional crops (such as barley, corn, and legumes) for indoor farming as well as the suitability of the various sprouts for feeding additional farm animals and/or for other uses.

The contract with the Granot Group is the first contract in intellectual property development business models to derive revenues from end-product sales

On November 2, 2022, the company announced that through the use of the company's artificial intelligence tools, and based on tests it performed, NRGene Canada located elite varieties of wheat that were found to be excellent for growing as sprouts, compared to hundreds of commercial wheat varieties that were tested as part of the cooperation between the parties.

In doing so, the company marked a significant milestone towards the development and improvement of elite varieties of wheat that will be grown as sprouts, based on the varieties selected as part of the project. The selected varieties will allow the company to continue the development process of the varieties that will be grown in indoor farming and intended for feeding cows.

Further to the company's contract with a Bank Hapoalim dated May 3, 2021 in an agreement to raise a loan in the amount of NIS 3.3 million (about USD 1 million) for three years, to finance the establishment of the genotyping lab in Canada, on August 15, 2022, the company's board of directors decided to repay the balance of the said loan in the amount of approximately NIS 2.4 million (about USD 0.7 million).

Investment Thesis

Agriculture is one of the oldest areas of technology and innovation in existence. Its objectives have changed little throughout history: finding ways to increase yields and maximize key traits of crops or animals, such as size, flavor, color, and resistance to pests. Agtech startups have provided farmers with a variety of strategies and technologies to help improve crop resiliency and output. These include agri-finance tools, biotech solutions to improve yields and resiliency, farm management software, and an emerging focus on data-driven artificial intelligence and machine learning (ML) to help automate decision-making.

Modern Agtech startups began attracting venture funding roughly a decade ago, with the industry raising USD 322.2 million in 2010. Since then, VC funding in Agtech has grown to USD 6.1 billion in 2020, a 33.8% CAGR. This explosive growth is a direct result of two primary factors: population growth and climate change. The global population is expected to swell to 9.8 billion people by 2050, driving more demand for food.ⁱ At the same time, greenhouse gases and warming climates are creating increasingly frequent extreme weather events that threaten crop yields.

NRGene Technologies Ltd. is an AgTech company engaged in research and development of technology in the field of AI, including software tools, with the aim of analyzing genetic information based on Big Data, in order to accelerate and improve the natural development of crops and animals in the global agriculture and food industry. The uniqueness of this technology lies in its ability to analyse all gene combinations, locate the optimal genetic composition and enable the natural improvement of plant or animal traits by creating new varieties in an accelerated way.

NRGene's technology is widely used to create disease-resistant and climate-resilient varieties with healthier nutritional compositions and maximized yield potential. In the field of plant genomics, the company offers a vast proprietary database and AI-based technologies. The solutions provided by the company have been widely accepted by several research organizations and big industrial players across ~300 projects.

The core of NRGene's technology is its cloud-based AI tool coupled with its extensive database of genomic information, field performance data, and information on pests, diseases, and seed and irrigation

considerations. This information is fed into NRGene's AI model, which computationally predicts elite varieties that consider the mentioned variables. Once the predicted variety is identified, then the variety is produced either using an expedited breeding process, gene editing, or CRISPR. This process allows improved varieties to develop in half the time and at half the research and development costs.

NRGene's solution can be applied and utilized early in an R&D cycle to identify interesting or problematic genes. The Company intends to continue and expand its seed and traits royalty business to solve specific challenges directly to farms and to breeding organizations (seed, food & beverage, processors, retailers, etc.), including offering disease-resistant, drought-resistant, and pest-resistant varieties.

The Company has a comprehensive R&D team that offers innovative solutions in the field of genomics. These capabilities have been combined and have allowed the Company to easily identify several proprietary traits across a wide set of plant genomes that it can license in the future.

NRGene's long-term go-to-market strategy is to become a one-stop shop for all plant and animal breeding genomic requirements. We deem that NRGene is in a strong position for growth due to its large customer base, scalability potential, know-how, and agile business model.

Market

The following three areas encompass significant portions of NRGene's addressable market: bioinformatics technologies, genotyping, and seeds (both genetically modified (GM) and non-GM).

The bioinformatics technology market for agricultural applications generated revenue of USD 3,296 million in 2020 and is expected to generate USD 7,509 million in 2026, a CAGR of 14.7% between 2021-2026. Due to the pressing need to use bioinformatics to identify and cultivate unique traits and the number of unaddressed opportunities across the world, it is expected that the demand for bioinformatic technologies will be immense. In general, Frost & Sullivan expects that revenue growth will range from 13% to 25%, depending on the target application.

A key growth opportunity in the bioinformatics sector is addressing the need for integrated solutions and systems. NRGene's solution could help seeds and/or food firms compensate for the lack of skilled personnel that is hampering market growth and facilitate their transition into integrated solutions and systems companies.

The seed market generated revenue of USD 42,424 million in 2020 and is expected to generate USD 54,926 million in 2026, a CAGR of 4.4% between 2021-2026. The non-GM seed market will also grow during the forecast period as farmers, consumers, governments, and other relevant stakeholders slowly move away from GM-produced varieties. Non-GM crop demand is rising in Asia and the EU and, consequently, these crops command a premium over GM varieties despite possible lower yields.

NRGene could help GM/non-GM companies boost their R&D efforts and quickly achieve varieties with desirable traits such as increasing resistance to pests and tolerance to herbicides, and adverse weather such as drought.

The genotyping technology market generated revenue of USD 1,855 million in 2020 and is expected to generate USD 3,087 million by 2026, a CAGR of 8.9% between 2021-2026. With the increasing adoption of technologies in the plant and animal genomics market post-COVID-19 pandemic, and the 2022 Russian invasion of Ukraine, the market size of support services is expected to grow in parallel by 2026 to facilitate the adoption of services amongst researchers and industry giants.

Valuation summary

NRGene is a growth firm, thus we based our valuation on current and future market trends and the Company's plans for future operations. Due to the high growth in the Ag Biotech market and the uniqueness of NRGene's solution, we predict that the Company is well-positioned to generate significant growth in the foreseeable future.

We conducted NRGene's valuation using market benchmarks from recent deals and analysis of VC's activity; Given the assessments and findings mentioned above, we value the company's stock price target in the range of NIS 29.4 to NIS 32.4, with a mean of NIS 30.9.

1. Company Overview

1. Company Description

NRGene Technologies Ltd. is an AgTech company engaged in research and development of technology in the field of artificial intelligence, including software tools, with the aim of analyzing genetic information based on Big Data, in order to accelerate and improve the natural development of crops and animals in the global agriculture and food industry. NRGene's technology is widely used to create disease-resistant and climateresistant varieties, with healthier nutrients and to maximize the yield potential throughout the value chain. In the field of plant genomics, the Company offers an extensive database, AI-based technologies, and tools and services to some of the leading seed and AgTech companies and research institutes in the world.

Strategy

NRGene's long-term strategy is to become a one-stop shop for all genomic requirements in the development of crops and animals, regardless of the location of partners and customers in the agricultural value chain. This includes data generation in laboratories (including its genotyping lab in Canada) and through other R&D activities, including identification of genetic diversity, to produce new varieties to supply seeds/varieties to various organizations that support farmers around the world. Since the end of 2020, the Company has been actively involved in partnerships with its customers in several development projects of crops and animals in several countries. The Company (exclusively or with partners) invests in development projects of new varieties of crops and animals. The Company then owns the improved varieties and/or traits and benefits from the commercialization of traits or varieties in exchange for royalties from sales or sales of the end-products.

Business Model

During H1 2022, the company operated through several complementary business models:

• 1. Intellectual property development: As of H1 2022, the Company focuses most of its efforts on intellectual property development projects that can generate royalties from sales or sales of the end-products:
  2. a. Royalty agreements This type of intellectual property development project may generate royalties for the Company and, as the project matures into commercialization, have the potential to carry long-term value to shareholders and customers. In this model, the Company initiates and leads intellectual property development projects with partners (such

as pea and hemp development for the alternative protein industry or high-quality cherry tomato varieties development), or carry the development independent of the partner (such as breeding canola resistant to clubroot a fungal disease).

To date, the company has three main categories of intellectual property development:

• Improving the development of unique traits
• Development of new/unique elite varieties
• Improving and developing food ingredients

In these types of projects, the partner receives the end-product (varieties or traits) and pays the company royalties from its revenues. Thus, the financing and business risk of the partner/customer is lower since payment to the Company depends on the achievement of the development goals and the future income of the partner/customer. The Company estimates that if (i) the development stage of the project is completed successfully, the projects will reach the stage of implementation and commercialization, (ii) subject to the right market conditions, and (iii) having contracts in royalty-based deals with a significant amount of potential clients, then revenues from royalties from each project (for the entire project duration – 10 years on average) has the potential to amount to tens of millions of dollars.

Project	Development	Commercialization	Expected	Potential market	Expected
	period	status	period for	per year	royalties
			initial	(seeds/varieties)	(life time
			royalties		value of 10
					years)
ToBRFV	2020-2022	10 signed	2023	Above USD 500	USD 100
Resistance in		commercialization		million/year	million
Tomatoes		agreements
Clubroot	2021-2025	Not yet initiated	2025	Above USD 300	USD 75
Resistance in				million/year	million
Canola
Alternative	2021-2023	Not yet initiated (part	2024	Above USD 150	USD 50

As of the H1 2022 report, the Company has assessed several material projects as follows:

Protein from		of a consortia		million/year	million
Pea and Hemp		agreement in Canada)
(alternative
protein)
High-Quality	2021-2023	Not yet initiated (the	2025	Above USD 25	USD 10
Cherry Tomato		partner is responsible		million/year	million
Varieties		for commercialization)

* Based on the company's estimates based on market data as of the date of the first H1 2022 report, including estimates regarding the market size, penetration rate and the average royalty rate.

** According to the company's estimation, the average project life is about 10 years. The revenue potential shown in the table is subject to the assumptions detailed above.

The status of current and expected IP development deals as of H1 2022 report are presented below:

b. End-products development projects – This type of intellectual property development project may generate revenues from the end-products (varieties or traits) directly to the customers. The Company estimates that if the projects reach commercialization, they have the potential to carry a long-term value for the Company's shareholders and customers. The potential is estimated by the Company to be highly significant because of the outcome of the project is an end-product in markets that amount to hundreds of billions of dollars.

The status of current and expected IP development deals, as of the H1 2022 report are presented below:

	Project / Partner	2021	2022	12023	2024	1 2025	12026	2030
	IP development in return for end-product sales
ə N	Seedlings for dairy cattle feed Granot Group ( NEW			2022: NRGene's development		2024: income from end-product sales
ən birin (Milli Mərkəzi) — Azərbaycan (Azərbaycan fərqlər) — Azərbaycan (Azərbaycan fərqlər) — Azərbaycan (Azərbaycan fərqlər) — Azərbaycan (Azərbaycan fərqlər) — Azərbaycan	Insects adapted to different agricultural residues Internal Development		2022: NRGene's development			2024: income from end-product sales
ietie	. **

1. Genetic testing (Genotyping) - As of the date of the H1 2022 report, most of the Company's commercialization activities focus on the SNPer™ product in the field of genetic testing (genotyping) of crops and animals. The Company provides its customers with a complete DNA testing solution (subscription model) that includes custom project planning, data generation, offthe-shelf DNA kits (generic panels) and genetic testing analysis. These tests effectively identify the individuals within the broad breeding population with the best genetic structure. The company estimates that its solution costs are significantly lower as compared to existing solutions in the market.

As of the date of the H1 2022 report, the Company expanded its customer base and signed commercialization contracts for genetic testing in key crops such as corn, wheat, canola, etc. In October 2021, the Company opened a laboratory in Saskatoon in Saskatchewan, Canada. As of the date of the report, the laboratory is operational and is serving existing and new customers. The Company forecasts an increase in revenues associated with genetic testing by entering into longterm and recurring transactions with existing and future customers. Therefore, with the launch of the new products, the Company chose to prioritize long-term recurring transactions for this product (genetic testing) at the expense of one-time/short-term revenues. This is part of its market penetration strategy to give the Company a better reach to an advanced stage in the value-chain. The Company continues to carry out additional research and development efforts to expand its solutions in the field of genetic testing, including dedicated DNA kits to specific market segments and crops with extensive business potential based on the Company's unique databases.

1. Long-term collaborations (strategic projects) - The Company continues to support its customers in long-term collaboration projects in exchange for revenue from a services and subscription-based software model. The support includes services that are unique and/or tailor-made for the specific

needs of the project/customer, including highly complex bioinformatic analysis, cloud-based AI solutions, etc. The Company has completed over 300 projects and proved that the technology brought value to its customers (validation). The Company also gained vast experience and built databases in key crops used in existing and new projects. Presently, the Company is actively engaged in negotiations that may lead to additional substantial projects.

We believe that the above complementary models are beneficial to NRGene for two main reasons:

• A. The Company will use the accumulated knowledge, proprietary databases (genetic information) and algorithms to enhance its competitive advantage and support its future growth.
• B. The new business model (intellectual property development) allows the Company to advance in the agriculture value chain and achieve the maximum potential that was not previously accessible through royalties received from its customers or sale of end-products.

As of the date of the H1 2022 report, the balance of the financial assets (cash, and short-term bank deposits) available to the Company are about USD 15.8 million (gross), and the company expects to be able execute its strategic plan without the need for additional financing. In addition, the Company is actively seeking additional alternative financing options such as government grants.

Appendix #1: About Frost & Sullivan

Frost & Sullivan* is a leading global consulting and market & technology research firm with a staff of 1,800, including analysts, experts, and growth strategy consultants, with approximately 50 branches across 6 continents, including in Herzliya Pituach, Israel. Frost & Sullivan's equity research utilizes the experience and know-how accumulated over the course of 55 years in medical technologies, life sciences, technology, energy, and other industrial fields, including the publication of tens of thousands of market and technology research reports, economic analyses and valuations. For additional information on Frost & Sullivan's capabilities, visit: www.frost.com. For access to our reports and further information on our Independent Equity Research program, visit: www.frost.com/equityresearch.

*Frost & Sullivan Research and Consulting Ltd., a wholly owned subsidiary of Frost & Sullivan, is registered and licensed in Israel to practice as an investment adviser.

What is Independent Equity Research?

Nearly all equity research is nowadays performed by stock brokers, investment banks, and other entities that have a financial interest in the stock being analyzed. On the other hand, Independent Equity Research is a boutique service offered by only a few firms worldwide. The aim of such research is to provide an unbiased opinion on the state of a given company and potential forthcoming changes, including in their share price. The analysis does not constitute investment advice, and analysts are prohibited from trading any securities being analyzed. Furthermore, Frost & Sullivan conduct Independent Equity Research services that are reimbursed by a third-party entity and not directly by the company under review. Compensation is received up front to further secure the independence of the research.

Analysis Program with the Tel Aviv Stock Exchange (TASE)

Frost & Sullivan is delighted to have been selected to participate in the Analysis Program initiated by the Tel Aviv Stock Exchange Analysis (TASE). Within the framework of the program, Frost & Sullivan produces equity research reports on Technology and Biomed (healthcare) companies that are listed on the TASE, and disseminates them on exchange message boards and through leading business media channels. Key goals of the program are to enhance global awareness of these companies and to enable more informed investment decisions by investors that are interested in "hot" Israeli hi-tech and healthcare companies. The terms of the program are governed by the agreement that Frost & Sullivan signed with the TASE and the Israel Securities Authority (ISA) regulations.

For further inquiries, please contact our lead analyst:

Dr. Tiran Rothman T: +972 (0) 9 950 2888 E: equity.research@frost.com

Disclaimers, disclosures, and insights for more responsible investment decisions

Definitions: "Frost & Sullivan" – A company registered in California, USA with branches and subsidiaries in other regions, including in Israel, and including any other relevant Frost & Sullivan entities, such as Frost & Sullivan Research & Consulting Ltd. ("FSRC"), a wholly owned subsidiary of Frost & Sullivan that is registered in Israel – as applicable. "The Company" or "Participant" – The company that is analyzed in a report and participates in the TASE Scheme; "Report", "Research Note" or "Analysis" – The content, or any part thereof where applicable, contained in a document such as a Research Note and/or any other previous or later document authored by "Frost & Sullivan", regardless if it has been authored in the frame of the "Analysis Program", if included in the database at www.frost.com and regardless of the Analysis format-online, a digital file or hard copy; "Invest", "Investment" or "Investment decision" – Any decision and/or a recommendation to Buy, Hold or Sell any security of The Company. The purpose of the Report is to enable a more informed investment decision. Yet, nothing in a Report shall constitute a recommendation or solicitation to make any Investment Decision, so Frost & Sullivan takes no responsibility and shall not be deemed responsible for any specific decision, including an Investment Decision, and will not be liable for any actual, consequential, or punitive damages directly or indirectly related to The Report. Without derogating from the generality of the above, you shall consider the following clarifications, disclosure recommendations, and disclaimers. The Report does not include any personal or personalized advice as it cannot consider the particular investment criteria, needs, preferences, priorities, limitations, financial situation, risk aversion, and any other particular circumstances and factors that shall impact an investment decision. Nevertheless, according to the Israeli law, this report can serve as a raison d'etre off which an individual/entity may make an investment decision.

Frost & Sullivan makes no warranty nor representation, expressed or implied, as to the completeness and accuracy of the Report at the time of any investment decision, and no liability shall attach thereto, considering the following among other reasons: The Report may not include the most updated and relevant information from all relevant sources, including later Reports, if any, at the time of the investment decision, so any investment decision shall consider these; The Analysis considers data, information and assessments provided by the company and from sources that were published by third parties (however, even reliable sources contain unknown errors from time to time); the methodology focused on major known products, activities and target markets of the Company that may have a significant impact on its performance as per our discretion, but it may ignore other elements; the Company was not allowed to share any insider information; any investment decision must be based on a clear understanding of the technologies, products, business environments, and any other drivers and restraints of the company's performance, regardless if such information is mentioned in the Report or not; an investment decision shall consider any relevant updated information, such as the company's website and reports on Magna; information and assessments contained in the Report are obtained from sources believed by us to be reliable (however, any source may contain unknown errors. All expressions of opinions, forecasts or estimates reflect the judgment at the time of writing, based on the Company's latest financial report, and some additional information (they are subject to change without any notice). You shall consider the entire analysis contained in the Reports. No specific part of a Report, including any summary that is provided for convenience only, shall serve per se as a basis for any investment decision. In case you perceive a contradiction between any parts of the Report, you shall avoid any investment decision before such contradiction is resolved. Frost and Sullivan only produces research that falls under the non-monetary minor benefit group in MiFID II. As we do not seek payment from the asset management community and do not have any execution function, you are able to continue receiving our research under the new MiFiD II regime. This applies to all forms of transmission, including email, website and financial platforms such as Bloomberg and Thomson.

Risks, valuation, and projections: Any stock price or equity value referred to in The Report may fluctuate. Past performance is not indicative of future performance, future returns are not guaranteed, and a loss of original capital may occur. Nothing contained in the Report is or should be relied on as, a promise or representation as to the future. The projected financial information is prepared expressly for use herein and is based upon the stated assumptions and Frost & Sullivan's analysis of information available at the time that this Report was prepared. There is no representation, warranty, or other assurance that any of the projections will be realized. The Report contains forward-looking statements, such as "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions. Undue reliance should not be placed on the forward-looking statements because there is no assurance that they will prove to be correct. Since forwardlooking statements address future events and conditions, they involve inherent risks and uncertainties. Forward-looking information or statements contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from current projections. Macro level factors that are not directly analyzed in the Report, such as interest rates and exchange rates, any events related to the ecosystem, clients, suppliers, competitors, regulators, and others may fluctuate at any time. An investment decision must consider the Risks described in the Report and any other relevant Reports, if any, including the latest financial reports of the company. R&D activities shall be considered as high risk, even if such risks are not specifically discussed in the Report. Any investment decision shall consider the impact of negative and even worst case scenarios. Any relevant forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E the Securities Exchange Act of 1934 (as amended) are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. TASE Analysis Scheme: The Report is authored by Frost & Sullivan Research & Consulting Ltd. within the framework of the Analysis Scheme of the Tel Aviv Stock Exchange ("TASE") regarding the provision of analysis services on companies that participate in the analysis scheme (see details: www.tase.co.il/LPages/TechAnalysis/Tase_Analysis_Site/index.html, www.tase.co.il/LPages/InvestorRelations/english/tase-analysis-program.html), an agreement that the company has signed with TASE ("The Agreement") and the regulation and supervision of the Israel Security Authority (ISA). FSRC and its lead analyst are licensed by the ISA as investment advisors. Accordingly, the following implications and disclosure requirements shall apply. The agreement with the Tel-Aviv Stock Exchange Ltd. regarding participation in the scheme for research analysis of public companies does not and shall not constitute an agreement on the part of the Tel-Aviv Stock Exchange Ltd. or the Israel Securities Authority to the content of the Equity Research Notes or to the recommendations contained therein. As per the Agreement and/or ISA regulations: A summary of the Report shall also be published in Hebrew. In the event of any contradiction, inconsistency, discrepancy, ambiguity or variance between the English Report and the Hebrew summary of said Report, the English version shall prevail. The Report shall include a description of the Participant and its business activities, which shall inter alia relate to matters such as: shareholders; management; products; relevant intellectual property; the business environment in which the Participant operates; the Participant's standing in such an environment including current and forecasted trends; a description of past and current financial positions of the Participant; and a forecast regarding future developments and any other matter which in the professional view of Frost & Sullivan (as defined below) should be addressed in a research Report (of the nature published) and which may affect the decision of a reasonable investor contemplating an investment in the Participant's securities. An equity research abstract shall accompany each Equity Research Report, describing the main points addressed. A thorough analysis and discussion will be included in Reports where the investment case has materially changed. Short update notes, in which the investment case has not materially changed, will include a summary valuation discussion. Subject to the agreement, Frost & Sullivan Research & Consulting Ltd. is entitled to an annual fee to be paid directly by the TASE. Each participant shall pay fees for its participation in the Scheme directly to the TASE. The named lead analyst and analysts responsible for this Report certify that the views expressed in the Report accurately reflect their personal views about the Company and its securities and that no part of their compensation was, is, or will be directly or indirectly related to the specific recommendation or view contained in the Report. Neither said analysts nor Frost & Sullivan trade or directly own any securities in the company. The lead analyst has a limited investment advisor license for analysis only.

© 2021 All rights reserved to Frost & Sullivan and Frost & Sullivan Research & Consulting Ltd. Any content, including any documents, may not be published, lent, reproduced, quoted or resold without the written permission of the companies.

Endnotes

i "World Population Projected to Reach 9.8 Billion in 2050, and 11.2 Billion in 2100," United Nations, June 21, 2017.