Turpaz Industries Ltd.

Investor Presentation • Aug 24, 2022

INVESTOR PRESENTATION

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August 2022

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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. (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.

HIGHLIGHTS H1 2022 (M US \$)

Sales \$ 57.7M	Gross profit \$ 22.4M	Adjusted EBITDA \$ 13.3M
+ 46.3% Sales growth + 10.3% Organic growth	+41.7%	+35.0%
Enhanced and expanded global management to support global growth strategy	Solid balance sheet, funding availability and strong cash flow from operations facilitate growth and acquisitions strategy	Accomplished 6 acquisitions from IPO (May 21) – 3 in 2022

Turpaz implemented a strategy of rapid double-digit growth, combining organic growth with synergistic and strategic acquisition while leveraging the synergies

DOUBLE DIGIT GROWTH – H1 2022

(*) based on the company's internal reporting

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

SEGMENTS PERFORMANCE - H1 2022

	Net Sales (Organic growth)	Operating Profit
In K US \$ / %	H1 2021 H1 2022	H1 2022 H1 2021
FRAGRANCES	9,573 13,066 12.3%	3,590 3,936 37.5% 30.1%
TASTE	29,420 13,245 18.4%	4,400 796 15.0% 6.0%
P- INTERMEDIATES	7,055 9,483 )22.3%)	2,036 2,953 28.9% 31.1%
S - INTERMEDIATES	7,143 8,169 20.6%	2,172 1,985 26.6% 27.8%

DOUBLE DIGIT GROWTH – Q2 2022

7 (*) based on the company's internal reporting

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

TURPAZ – CONSOLIDATED Q2 2022

In K US \$ / %	Q2 2021	Q2 2022
Sales	20,207	30,305
Gross profit	8,290 41.0%	11,660 38.5%
Operating profit	4,136 20.5%	4,954 16.3% (*)
Adj. EBITDA	5,188	6,990

(*) Decrease in operating margin due to:

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(1) +\$400K - amortization of intangible assets

(2) +\$490K - option share-based payment

(3) +\$300K - recruitment of management teams and strengthening of the company's managerial infrastructure

FRAGRANCES
In K US \$ / %	Q2 2021	Q2 2022
Sales	5,251	7,074
Operating profit	2,057 39.2%	2,143 30.3%
Organic growth		+11.3%

Highlights Strong organic growth

LORI profitability is lower than segment profitably. LORI has begun a program to improve its operational efficiency. Improved profitability is expected within the following quarters.

TASTE
In K US \$ / %	Q2 2021	Q2 2022
Sales	7,099	16,222
Operating profit	522 7.4%	2,657 16.4%
Organic growth		+18.8%
Highlights	Strong organic Profitably increased product lines &	growth SDA's due to improvement of operational efficiency.

P-	INTERMEDIATES P
	In K US \$ / % Sales	Q2 2021 4,196	Q2 2022 3,770
	Operating profit	1,341 32.0%	1,113 29.5%
Organic growth			-5.7%
	Highlights	Profitability mainly	affected by Euro USD	impacts.

S - INTERMEDIATES S
In K US \$ / %	Q2 2021	Q2 2022
Sales	3,661	3,239
Operating profit	975 26.6%	897 27.7%
Organic growth		-1.6%
Highlights	Profitability mainly affected sales mix.

P&L – SIGNIFICANT GROWTH

K US \$	2021	Q2 2021	Q2 2022	H1 2021	H1 2022
Revenues	85,334	20,207	30,305	39.444	57,710
Gross Profit	34,728	8,290	11,660	15,780	22,364
GP %	40.7 %	41.0 %	38.5 %	40,0 %	38.6 %
R&D Expenses	1,949	502	717	889	1,502
Sales & Marketing expenses	6,274	1,488	2,171	2,688	4,514
Management & General expenses	10,257	2,050	3,837	4,032	6,864
Other Expense (Income)	208	114	(19 )	167	(27 )
Operating Profit	16,040	4,136	4,954	8,004	9,511
OP %	18.8 %	20.5 %	16.3 %	20.3 %	16.5 %
Net Profit	12,812	3,195	4,239	6,317	8,199
EBIDTA	20,021	4,993	6,879	9,660	13,092
Adj. EBIDTA (*)	20,475	5,188	6,990	9,885	13,308
% Adj. EBIDTA	24.0 %	25.7 %	23.1 %	25.1 %	23.1 %

BALANCE SHEET

K US \$	31/12/2021	30/6/2021	30/6/2022
Assets
Current Assets	106,082	99,368	91,769
Non-Current Assets	66,587	34,790	79,913
Total Assets	172,669	134,158	171,682
Liabilities & Equity
Current Liabilities	37,032	26,594	35,437
Non-Current Liabilities	42,521	26,582	47,096
Equity	93,116	80,982	89,149
Total Liabilities and Equity	172,669	134,158	171,682

Shekel rates strengthened against the dollar and euro after the balance sheet date. The capital fund from translation differences would have increased by approximately USD 5.3 million if the financial statements had been translated according to the exchange rate of NIS 3.282 per dollar as of August 22, 2022, resulting in approximately USD 94.5 million in equity.

Ratio
Working capital to sales	24.2%	27.1%	25.8%
Net Cash	25,745	48,103	17,023
Net Cash (Net Debts)(*)	20,911	46,847	(1,898)
Equity to total balance sheet	54%	60%	52%

(*) Debts = Short and long-term loans from banks and other and liabilities relating to acquisitions

CASH FLOW

K US \$		2021	Q2 2021	Q2 2022		H1 2021	H1 2022
Cash flow from operation		12,283	3,031	(4,260)		4,907	1,108
Cash flow from investing activities	Proceeds from purchase of property, plant & equipment, net	)2,826(	(515)	(914)		)1,240(	)2,664(
	Purchase of companies consolidated for the first time and activities	)3,647(	-	(3,070)		-	)11,517(
	Total	)6,473(	(515)	(3,985)		)1,240(	)14,181(
	Cash flow from financing activities	45,572	60,347	)1,067(		59,408	)7,170(
Exchange differences in respect of cash and cash equivalents		1,716	55	(3,171)		(23)	(4,182)
	Total change in cash and cash equivalents	53,098	62,918	(12,483)		63,052	(24,425)
The decrease in the Cash flow from operation is mainly due to: (1) Purchase of inventories that burned in the fire incident at SDA (2) An increase in working capital due to increased group activity (3) Timing of receiving the insurance receipts

PROVEN TRACK RECORD OF ACQUISITIONS

Multinational Company

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