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Sonovia Ltd.

Investor Presentation Apr 6, 2022

7054_rns_2022-04-06_6deea97c-4a15-46bf-a7fe-f0834f4b894d.pdf

Investor Presentation

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The natural evolution of the textile industry Sonovia

Company Deck, April 22 TLV:SONO

Disclaimer

All potential investors should obtain consultation and guidance in connection with potential investments, including tax consultation considering their data and tax status and circumstances.

This presentation includes, inter alia, forward-looking information, as defined in the Securities Law, 5728-1968, including forecasts, goals, business strategy, estimates and assessments concerning Company's activity and the markets in which it operates, and any other information, in any form presented, referring to future events and/or matters whose realization is neither guaranteed nor in Company's control.

Said information is based, inter alia, on current estimates and forecasts of Company's management based on information available to the Company at the time of this presentation, which although the Company believes to be reasonable, is uncertain by its nature and is partially based on subjective estimates only. The realization or non-realization of forward-looking information shall be affected, inter alia, by risk factors characterizing Company's activities, as well as by decisions of third parties including regulatory bodies, developments in the economic environment and external factors affecting Company's activities, which may not be predicted and are not under Company's control.

In addition, any reference in this presentation to Company's goals and strategy is limited to the publication date of this presentation. Said goals may change from time to time according to the resolutions of the Company's authorized organs. The Company does not undertake to update and/or amend any forecast and/or estimate as aforesaid and does not undertake to amend or update this presentation.

The purpose of this presentation is to present the activity of Sonovia Ltd. ("hereinafter: "Company") and to provide initial and basic information only about its activity.

The presentation does not constitute an investment proposal or proposal to acquire Company's securities and in particular it does not constitute a "public offering" or "sale to the public" of any kind and nature whatsoever. Offering or sale as aforesaid, if any, shall be made based on prospectus and the audited financial reports published by the Company.

This presentation does not purport to include all information which may be relevant for the purpose of making any decision to invest in Company's.

Securities and in general. Investment in securities in general, and in Company's securities in particular, carries risks. It should be taken into consideration that past data are not necessarily indicative of future performance. The presentation may include statistical and other data and publications published by third parties, the content of which has not been examined by the Company, and the Company is not responsible for their accuracy.

This presentation was designed for overview and convenience only. It does not exhaust all data regarding the Company and its activity and does not replace the need to inspect the prospectus and audited financial reports which were published by the Company. Nothing stated in this presentation constitutes consultation of any kind (including tax or business consultation) and it does not come in lieu of consultation with qualified consultants in these areas.

Following the release of our 2021 financial statements, I am proud to report that the company is meeting its objectives and plans, progressing on all fronts, and gearing up towards commercialization of our revolutionary technology.

The company keeps growing and recruiting top talents in chemistry, engineering, regulation, marketing and sales, and keep investing in our its R&D labs to expedite the technology development.

As preparation for our technology commercialization, Jonathan Jaglom, a top Industry executive, joined us as CRO to lead and build our Go-to-Market infrastructure.

Our R&D team continuously yield market leading results in efficacy and resistance to washing, reaching strong efficacy after 100 laundries, whereas our development into green water repellency is demonstrating outstanding results according to strict industry standards.

Our pilots with global leading brands and manufacturers evolve, while proving outstanding results according to their high standards and demands, and we are advancing towards wider commercial agreements.

Our partnership with Bruckner, an leading fabric finishing machinery supplier, is key to our commercial success. Together, we've developed a fully industrial ultrasonic fabric finishing machine, which is now tested and optimized at Bruckner's R&D line in Germany, towards the first installation at Delta-Galil in Israel at mid-2022. In parallel, we are in advanced talks with Bruckner on the commercial terms, which will ensure Sonovia top-in-class manufacturing.

Our product department outperformed 2020 by more than 50%, reaching US\$14.5m in profitable revenue, fuels the company with cash reserves and builds the Sonovia brand and reputation worldwide. The product department team, under the leadership of our new CRO is shifting to a new strategy to diversify its offering and minimize the dependency on global COVID surges.

We continue to advance our company in the path for success, and we are all focused on successfully accomplishing our objectives for 2022.

What Powers Sonovia? Sonovia is disrupting the textile industry by breaking the paradigm that durability & performance = pollution.

Textile applications are endless, requiring different chemistries in textile preparation, dyeing and finishing.

Textiles are everywhere

Dyeing Fire Retardancy

Odor control

repellency

Temp.

control

Softening

The textile supply chain is extensive, with most of its issues stemming from the Pre-treatment, Dyeing, and Finishing stages.

Supply Chain

Highly Pollutive, poor durability

Prevalent preparation, finishing, and dyeing processes are highly pollutive, not durable, not agnostic to the fiber composition, use toxic chemistries, and require lengthy processes. 06

Wash out quickly

Not agnostic to fiber content

Incorporate

toxic chemicals

excessive use of chemicals

Lengthy processes

Growing demand for Performance

Low performance = low satisfaction

Prevalent finishing & dyeing methods are not aligned with growing industry trends and needs: No Answers to industrys' trends

Growing denand for Durability

Low durability = low satisfaction

Growing demand for Sustainability

Polluting method will become obsolete

Growing public awareness, industry leaders, brands, and regulatory entities are forcing a shift to sustainable 08

A forced change

Dyeing (not Indigo) Current products in R&D Flame retardancy

moist/temp. control Wrinkle resistant Others

16\$B We expect to cover most of the market within 5 – 7 years

Vote of Confidence

Strategic partner Strategic partner

Grant provider

Quick Facts

We re-invent textile finishing & dyeing.

2 Granted patents 3 Provisional

~50 employees in 2 divisions:

  • Technology Division Machines/consumables, Go-To-Market planned in 2022
  • Consumer Division end-products 2021 sales \$14.5m

Strategic partner

2021 financial highlights

11

Increased invest in R&D

  • 80% from \$532k to \$953k
  • Up from 6 position on 12/2020 to 19 today

Cash on 12/2021 - ~\$20m

  • Sufficient cash for 2+ years
  • No debt (other than routine payables)

Product Division as source of cash

  • 51% increase YoY from \$9.5m to \$14.5m
  • Opportunistic project subject to COVID19 status

Milestones From IPO to date

Dr. Aaron Garzon VP R&D

Liat Goldhammer CTO

Yonati Davidson VP HR

Jonathan Jaglom CRO

David Seligman CFO

Roy Hirsch CBO

Shmuel Rubin VP R&D Systems

Igal Zeitun CEO

Our Leading Team

Shai Hershkovitz COO

Advisory Board

Prof. Sidney Altman Prof. Amos Adler Prof. Allon Moses

Lior David Maayan Prof. Shuki Sheinman Executive advisor

Scientific advisory board

Executive advisory board

Board of Directors

Shuki Herchcovici Ohad Cohn Rami Sasson Vered Porat Arie Zamir Founder, Board member Board member Board member Board member Chairman of the board

The technology: The Power Of Sound

SONOfix™ machine generates ultrasonic waves

Ultrasonic waves generate cavitation

Cavitation bubbles implode, high velocity jet-streams

Jet-streams propel Sonovia chemistries onto the fabric

Sonovia Traditional method

Sono vs. Regular Finishing

>X10 more durable Anti-microbial content in fabric, %, After 50 laundries*

Superior performance Water repellency rating, After 50 laundries*

*Home laundries, 40℃, with Tide

Breakthrough performance in customer trials

efficacy after 75 washes, 60℃, at 2-hour exposure ZnO sono-finished fabric

efficacy after 100 washes, 40℃, at 18-hour exposure ZnO sono-finished fabric

S.Aureus K.Pneumoniae

Sonovia technology is disrupting the traditional textile industry

Exceptional durability

100% Agnostic to fiber type

Clean & safe chemistry

Cost-competitive

Simple integration & operation

Enables applying both conventional chemistries & Sonovia's chemistries for ultrasonic impregnation Sonovia SONOfix™ Machine

Sonovia's SONOfix™ machine is manufactured and supplied by Sonovia's strategic partner, BRÜCKNER Trockentechnik GmbH & Co. KG.

Sonovia's SONOfix™ can easily replace existing impregnation machinery.

• Based in Karmiel, Israel

-

  • Market leader in end-to-end manufacturing & supply solutions
  • Serving global leading Athletic & Intimate wear brands

  • Based in Leonberg, Germany 21
    • Market leader in fabric finishing machinery
    • 5,000 global installations

Strategic partnerships

BIOdome™ Anti-microbial/viral

BIOfresh™ Odor-control

D(y)ENIM™ Indigo dyeing

Our Products & Developments We will revolutionise the textile market one application at a time.

everDRY™ water repellency

Indigo dyeing

Collaboration With PureDenim, a globally renowned Denim manufacturer from Italy.

  • Opportunity to disrupt the Indigo dyeing market and dramatically reduce chemistry, water and energy consumption
  • US\$1.3B annual indigo dye market size 23
    • POC due to end by July, 2022
    • 1st installation at PD following successful scale-up of the POC

Gigi Caccia, Founder & CEO, PureDenim: "The Sonovia-PureDenim collaboration is a fascinating one. The concept of leveraging Sonovia's technology in indigo dyeing can truly revolutionize this industry."

Our business model

"HP" / "Nespresso" model - One-time sale of SONOfix™ machine, with a long-term consumables supply contract.

Our partner Bruckner focus its marketing on global mills, while we'll focus our marketing on the brands.

Dye & finishing suppliers

Sales Potential

Each SONOfix™ machine is expected to yield >\$1m in annual revenue from consumables.

~1,000 new impregnation machines are estimated to be sold annually around the globe, to a total estimated install base of ~20,000 lines.

Our partner Bruckner, holds a substential market share and will be an important contribution for an expedite market penetration & growth.

Our Status & Projection

Go-to-Market

Material events

Agreements

Installation at Delta-Galil

Successful Indigo dye POC

BIOdome™ , BIOfresh™ and everDRY™ launched

Sales

Penetration to each target market

Indigo dye tech Scaled-up

more product launches

Growth

R&D into new dye segments Continuous product launch Dominance

Penetration to new dye segments

Continuous product launches

Join our revolution.

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