Tadiran Group Ltd.

Investor Presentation • Aug 10, 2022

Q2-2022: Investor presentation

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 2021, second quarter 2022 and immediate reports (hereinafter: "Company Reports") 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 (including advancing the target for the realization of the growth strategy by two 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.

Enable a better living environment through renewable energies, a comfortable climate and healthy air ״

Our vision

Net profit 41.1 ILS million

Net profit increase

Q2-22 in numbers

Increases compared to comparative prior year period

Financial information for Q2-2022 includes financial results for VP Solar that has been consolidated into Tadiran Group's activities since 31.01.2022

Comprehensive income 52.6 ILS million

Net profit increase

+30.8%

Net profit 80.4 ILS million

Net profit increase

+14.1%

H1-22 in numbers

Increases compared to comparative prior year period

Financial information for Q2-2022 includes financial results for VP Solar that has been consolidated into Tadiran Group's activities since 31.01.2022

Comprehensive income 87.2 ILS million

Net profit increase

+23.8%

• Company activities

• Financial data

• Progress in implementing the strategy

Contents

The group's activities support the implementation of the growth strategy

roadmap

-

• Potential global and growing market

• Energy efficiency

The diagram above does not represent areas of activity / sectors but the business activity in accordance with the company's strategy and business objectives. *At this stage, the Company has initial engagements in storage projects of insignificant scope.

Synergistic activities: Renewable energy

As of 2021, Tadiran operates in the renewable energy market through significant strategic acquisitions

Entry into the growing sector: Solar energy

Tadiran's core area: Design, equipment and distribution

Focusing on Tadiran's core markets: Residential, commercial and industrial

Expanding the value proposition to customers: Brand, logistics, service, sales channels

The information regarding the Company's assessment of the scope of the renewable energy activity in the Group is forward-looking information as defined in the Securities Law based, inter alia, on the Group's objectives as of this date, its assessments of trends in the Group's businesses in particular and trends in the Group's management. And trends in the field of alternative energy and energy efficiency in Israel as of this date. These assessments may not materialize and / or materialize significantly differently from the Group's assessments, inter alia, as a result of factors external to the company and which are not under control, including changes in the state of the economy in Israel in general and in the market in which the company operates in particular. Different from those that the Group's management estimates as of the date of this report, regulatory changes and the realization of which of the risk factors described in the Company's reports.

Tadiran Solar's value proposition

• Logistics and trade activities
• A wide portfolio of products in the solar field for the domestic and commercial market
• Wide and synergistic customer base for Tadiran

Activities of the acquired company: planning, marketing and distribution

A leader in the design, processing, import, distribution and sale of products for assembling PV systems. The company is a one stop shop in the field of solar equipment and provides a complete and comprehensive solution to its customers.

Optimization systems

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

Solar panels

Authorized distributor of JINKO - a leading international panel manufacturer. Signed agreement to supply 360 MW in 2022 and 2023

Construction

Import of raw materials and processing in Israel

The developing renewable energy market is a significant growth engine for Tadiran

1

1. Data from the Ministry of Energy "Operative plan for reaching electricity production targets from renewable energies for 2025 and 2030" - publication date: -29.5.22 "https://www.gov.il/he/departments/news/re_290522 The information regarding the Company's assessment of the scope of the renewable energy activity in the Group is forward-looking information as defined in the Securities Law based, inter alia, on the Group's objectives as of this date, its assessments of trends in the Group's businesses in particular and trends in the Group's management. And trends in the field of alternative energy and energy efficiency in Israel as of this date. These assessments may not materialize and / or materialize significantly differently from the Group's assessments, inter alia, as a result of factors external to the company and which are not under control, including changes in the state of the economy in Israel in general and in the market in which the company operates in particular. Different from those that the Group's management estimates as of the date of this report, regulatory changes and the realization of which of the risk factors described in the Company's reports.

Residential roofs Commercial-industrial roofs

Tadiran Solar already operates in these segments and has a market share of approx. 30%

Tadiran is a leading player in the fast-growing solar equipment market

Solar farms

Aviem's value proposition

Aviem provides solutions in the field of UPS (uninterruptible power supply) and batteries for home, commercial and institutional customers.

Service

Leading professional team and annual service contracts with leading organizations in the economy for critical systems

Storage and batteries Agreements for the

Energy storage solutions. supply of storage systems in a total amount of up to USD 215 million in 2023- 2024

UPS systems and special power supplies

Own brand marketer and distributor of SOCOMEC and ABB - leading manufacturers

Relationships with customers Portfolio management Wide products

Engineering capabilities

Uninterruptible power supplies, storage and charging systems for electric vehicles 1

Supplier of advanced equipment and technology Professional team with extensive knowledge (planning, execution

and service)

1 The activity of charging management systems for electric vehicles is incorporated in a separate company held by 51% by Aviem Systems Ltd. and 49% by third parties.

Company's assets and capabilities

Uninterrupted Power Supply and Energy Storage market sizes

Characteristics

Emerging market, requires skill and expertise, commercial relations with global manufacturers

Growth drivers Organic growth drivers (server farms) and non-organic (product basket expansion)

A growing market, based on professional connections, service and engineering capabilities

High growth potential, driven by growth in the PV market

In the company's estimation, the uninterruptible power supply market and the storage market are attractive markets with significant growth potential

The information regarding the Company's assessment of the scope of the renewable energy activity in the Group is forward-looking information as defined in the Securities Law based, inter alia, on the Group's objectives as of this date, its assessments of trends in the Group's businesses in particular and trends in the Group's management. And trends in the field of alternative energy and energy efficiency in Israel as of this date. These assessments may not materialize and / or materialize significantly differently from the Group's assessments, inter alia, as a result of factors external to the company and which are not under control, including changes in the state of the economy in Israel in general and in the market in which the company operates in particular. Different from those that the Group's management estimates as of the date of this report, regulatory changes and the realization of which of the risk factors described in the Company's reports.

VP Solar's value proposition

Expansion into Europe and expansion of the group's renewable energy activities through the acquisition of VP Solar in Italy and other countries

VP Solar is a one-stop shop in the field of solar equipment and provides a complete and comprehensive solution to the customer.

Solar panels

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

Energy conversion systems

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

Energy storage

Authorized distributor of BYD, LG, and others

Mounting systems

Import and distribution of ready-made mounting systems

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

EV charging

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

Company's assets and capabilities

Relationships with customers

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

Supplier of advanced technology Converters, panels and storage systems from the best manufacturers in the world

Professionalism

High-quality professionals with a high sense of service

Company presentation 14

Italian and European markets: significant growth expected backed by supportive regulation

Renewable energy 15 15

As part of the ESCO project, energy consumption systems in hospitals are replaced with more efficient systems. The company receives consideration of 80% of the savings until the end of 2033.

As part of the project, energy efficiency solutions installed in hospitals throughout Israel.

As of 31.12.2021, total expected expenses are estimated at NIS 95 million (approximately NIS 38 million in respect of installation costs and approximately NIS 57 million in respect of maintenance and other expenses).

As of 31.12.2021:

In the lighting and thermal fields: The first phase of the project has been completed.

In the field of heating: One remaining project is nearing completion

The information presented above, including the schedules for the project, the total expected expenses in connection with the project and the date of execution, the scope of the hospitals participating in the project, etc., is forward-looking information, as defined in the Securities Law, based on the company's subjective assessment and familiarity with the project and / or the non-realization of forward-looking information will be affected by factors that cannot be estimated in advance and are not under the Company's control, including, inter alia, changes in schedules, scope of investments and costs in connection with the project, and issues related to policy and / or actual conduct Health and hospitals.

Energy efficiency

Company presentation 16

Innovative product portfolio

Broad Offering of Solutions

Inventive AC solutions

Air treatment

Unique solutions for indoor air treatment and air quality improvement

Inviz: outdoor unit that can be installed in hidden areas

Hybrid water heating systems

Full range of products and capacities

Full range of highwalls and ducted products

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Tadiran's clean air revolution

99.99% effective in neutralizing the coronavirus indoors under

• Tadiran's air purification technology was found to be up to conditions tested in the experiment*
• A small and simple product that can be installed in an air conditioner, makes the air we breathe healthier
• in the air.

• The technology is based on an electric current that converts the moisture in the air into hydrogen peroxide, which effectively and safely kills about 99.8%** of the viruses, molds and bacteria

TADIRAN AIROW

*The technology neutralizes the coronavirus in the air, according to tests performed in an enclosed space measuring 1 cubic meters, after 90 minutes.

** Under the conditions of the tested experiments, after 120-150 minutes.

• Company activities

• Financial data

• Progress in implementing the strategy

Contents

Revenues (NIS in millions)

Operating profit (NIS in millions)

Net profit (NIS in millions)

Since 2016, Tadiran has distributed approx. NIS 300 million of dividends. Dividend

distribution (NIS in millions)

Close to the publication date of the financial statements for Q2-2022, an additional dividend of NIS 39.7 million was announced based on the H1-2022 results to be paid in August 2022.

	30.06.22	30.06.21	31.12.21
Cash and cash equivalents	85.8	212.2	129.5
Other current assets	1,121.4	588.2	611.1
Non-current assets	571.3	189.3	237.3
Total assets	1,778.4	989.8	977.8
Current liabilities	940.0	425.9	369.9
Non-current liabilities	409.3	139.8	146.1
Equity	429.0	424.0	461.8
Total liabilities and equity	1,778.4	989.8	977.8

Summary balance sheet (NIS in millions)

Details as at 30.6.22 including results for VP Solar that have been consolidated from 31.01.22

Ratio	30.06.22	30.06.21	31.12.21
Current ratio	1.28	1.88	2.01
Quick ratio	0.67	1.24	1.26
Equity to assets	24.1%	42.8%	47.3%
Net financial debt (NIS millions)	229.3	-88.3	3.6
Net debt to equity	0.89	-0.4	0.0

Key financial ratios

Details as at 30.6.22 including results for VP Solar that have been consolidated from 31.01.22

• Company activities

• Financial data

• Progress in implementing the strategy

Contents

Key principles of the group's strategic plan and growth engines

A technological and innovative value proposition for air treatment

Entering growing markets globally

Expansion into areas of synergistic activity in Israel renewable energy

Preserving the lead in the Israeli market: Home and Commercial Air Conditioning Launch new and innovative products

Further update to the implementation of the strategy

Energy activities are fully absorbed in Tadiran and reflects about 54.3% of total activity in H1-22. According to the pace of the company's progress in implementing the strategy, according to the company's management, the group will achieve the annual sales target of

over NIS 2 billionalready in 2022 (3 years prior to the original strategic goal).

The information regarding the Company's assessment of the progress of the implementation of the Company's strategic plan and regarding the scope of the Group's energy activity is forward-looking information as defined in the Securities Law based, inter alia, on the Group's objectives as of this date, its assessments. In general, as well as the Group's management's assessments of potential and trends in the field of alternative energy and energy efficiency in Israel as of the date of this report. These assessments may not materialize and / or materialize significantly differently from the Group's assessments, inter alia, as a result of factors external to the company and which are not under control, including, among other things, changes in the economy in Israel in general and in the market in which the company operates in particular. Different from those that the Group's management estimates as of the date of this report, the non-realization of the potential for penetration into international markets and the realization of which of the risk factors described in the Company's reports.

Sales in H1-2022 (NIS in millions)

Consumer

Thank you!