Augwind Energy Tech Storage Ltd

Investor Presentation • Apr 3, 2022

ENERGY STORAGE SOLUTIONS

Investor Presentation, April 3 rd . 2022

DISCLAIMER

The information included under this presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer to purchase securities and/or an invitation to make offers for their purchase or solicitation of any of the above regarding any securities of Augwind Energy Tech Storage Ltd. (the "Company").

This Presentation was made for a convenient and concise presentation, and it does not exhaust the full data and information about the Company and its activities that may be relevant for the purpose of obtaining any decision regarding investment in the Company's securities, and therefore does not replace the need to review and inspect the company's Reports to the Israel Securities Authority, and especially the company's annual report for the period ended on 31.12.2021, published on March 31, 2022 (reference number: 2022-01-034605 the "Annual Report" and "Public Information", respectively). The information under this Presentation is not a substitute for Public Information and in the event of any conflict between the content of this Presentation and the content of any Public Information, the content of the Public Information shall prevail.

The information in this Presentation should not be relied upon as any representation or warranty, express or implied, of the Company. No reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this Presentation. No legally binding obligations will be created, implied, or inferred from this Presentation. Various statements in this Presentation include information which derives from forecasts, estimates, assessments, and other information pertaining to future events and/or matters, whose materialization are uncertain and beyond the Company's control, and which constitute "Forward-looking information", as defined in the Israeli Securities Law, 1968.

Forward-looking information includes descriptions regarding the intent, belief or current expectations of the Company and are not guaranteeing future results, performance or achievements and are based on current expectations, estimations, and assumptions, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation due to a variety of factors, many of which are beyond the Company's control, including, without limitation, certain risk factors as contained in the Annual Report. The Company does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. Certain information and factual statements (including in regards to markets or trends) contained herein are based on or derived from publicly available documents or independent third-party sources, and therefore the accuracy of such information and the assumptions on which such information is based have not been independently verified.

2021 MARKET SUMMARY

• Energy storage stronger than ever, 2021 was a record year
• Increasing demand for long-duration energy storage (LDES)
• COP26 and overall climate action
• Strong financial commitment to ESG related activity

• \$1.5B capital raised by energy storage technology companies

• Global supply chain crisis, supply instability, increase in costs & inflation

This is the decisive decade… we must make decisions that will avoid the worst consequences of a climate crisis

ENERGY STORAGE DEPLOYMENTS REACH NEW RECORDS IN 2021

Global Storage Deployments 2021, GWh(1)

(1) Wood Mackenzie, 2021

• Organizational build-up
• New Chairman & CEO, experienced leadership team appointed
• First pilot small-scale commercial installation
• First AirSmart installation in EU
• AirSmart repeat orders from Iscar (Berkshire Hathaway Group)
• Significant increase in R&D investments
• Yahel pilot project optimization still underway
• AirSmart sales have not taken off yet to expected levels
• Surging global costs had a negative impact on our business plan

INVESTING IN THE FUTURE 2021 FINANCIAL RESULTS

2021 Non-GAAP 5,196 4,781 415 7,890
9,467
16,384
–
(33,327)
609
143
(32,861)

** All Excl. SBC; R&D investment including Yahel development

* Displayed in thousands NIS

137M NIS CASH * AVAILABLE TO SUPPORT OUR BUSINESS PLAN

Balance Sheet in thousands NIS

	2020	2021
Cash and cash equivalents	24,378	6,667
Short -term deposits	–	130,618
Trade receivables	2,848	3,479
Other accounts receivable	2,419	3,013
Inventory of contracts in progress	609 1,849
Current Assets	30,254	145,626
–	–	–
Long -term deposits	150,140	–
Other Non -Current Assets	10,001	41,438
Non -Current Assets	160,141	41,438
Total Assets	190,395	187,064
–	–	–
Current Liabilities	7,676	14,530
Current Liabilities	3,429	15,261
Equity	276,105	322,730
Accumulated Deficit	(96,815)	(165,457)
Total Liabilities	190,395	187,064

* As of December 31st. 2021

(1) California System Operator, March 31st 2022; Net Demand = Demand less wind & solar production

LDES IS BECOMING KEY TO THE GLOBAL ENERGY TRANSITION NEW TECHNOLOGIES ARE NEEDED TO ADDRESS THE DEMAND

Total 195GWh deployed in 2030 Annual energy storage deployments, globally (GWh)(1)

Augwind's servable market expected to reach 101 GWh by 2030

New technologies are emerging to fill the gap

• AirBattery
• Mechanical solutions
• Electrochemical solutions
• Thermal solutions
• Others

(1) Company's Analysis based on several market forecasts: Bloomberg; Wood Makenzie; IHS Markit

AIRBATTERY UNBUNDLES PUMPED-HYDRO CONSTRAINTS PHS IS THE MOST COST-EFFICIENT ENERGY STORAGE SOLUTION BUT IT REQUIRES MASSIVE LAND AND UNIQUE TOPOGRAPHY

AIRBATTERY IS AT THE SWEET-SPOT OF LONG DURATION ENERGY STORAGE

Electrochemical

Lithium-Ion and other chemistries: Lead-acid, Zinc, Sulphur, flow, metal-air...

Mechanical Pumped Hydro; CAES, Gravity

Future / early stage

Thermal; liquid-Air; Hydrogen; Magnetic, massless…

AirBattery

A novel combination of pumped-hydro and compressed air energy storage in a modular, scalable system architecture.

AIRBATTERY PROVIDES THE ADVANTAGES OF PUMPED-HYDRO WITHOUT ITS DRAWBACKS…

• ✓ Suitable for Long duration 4-12 hrs. & Multiple daily cycles
• ✓ Minimal degradation
• ✓ Over 70% Round-Trip Efficiency (RTE target)
• ✓ Competitive total cost of ownership (TCO) vs. existing alternatives
• ✓ Strong ESG: Not dependant on rare chemicals or metals, uses recycled materials, no major recycling challenges, relies strongly on local sourcing and manpower
• ✓ Minimal footprint and can be implemented almost anywhere
• ✓ Scalable & modular 10-1,000 MWh

IMPROVING INDUSTRIAL ENERGY CONSUMPTION CREATES HUGE OPPORTUNITIES FOR AUGWIND ACROSS INDUSTRIES AND GEOGRAPHIES

AirSmart potential market size in focus regions(1)

Industrial players are eager to implement energy efficiency solutions to increase manufacturing resiliency, meet decarbonization goals and improve overall profitability

AirSmart offers a huge saving potential for Industrial compressed air consumers across developed and emerging markets

(1) Augwind's analysis as elaborated in the financial reports

Key Target Industries

Steel Chemical & Petroleum Cement

Glass Paper & Pulp Automotive

Food & Beverages Textile

PROVEN ENERGY SAVINGS (EXAMPLES)

Optimizing power consumption with compressed-air generation

Plastic customer: ~15% savings

Optimizing pressure & flow

STRATEGY GOING FORWARD

INITIAL INSIGHTS 3 MONTHS INTO THE JOB

AIRSMART: BECOMING A HOLISTIC INDUSTRIAL EFFICIENCY SOLUTION

AirSmart projects are currently focused only on compressed-air energy savings

Track-record of over 30 AirSmart projects* has shown significant additional industrial benefits, such as:

• ✓ Process stabilization
• ✓ Reduction in reject-rates
• ✓ Improved productivity and yield
• ✓ Reduced down-time/Back up
• ✓ Machinery longevity

In 2022 Augwind plans to expand its UVP and significantly increase sales and profitability of AirSmart product line

* Over 60 AirXs installations

AIRSMART PROVIDES A UNIQUE OPPORTUNITY FOR AUGWIND TO BECOME THE PREFERRED INDUSTRIAL ENERGY EFFICIENCY PARTNER

A new growth path for growing Augwind's AirSmart line of business:

• Develop an extended industrial energy management system combining hardware and software
• Increased deal size/ value by expanding the product offering for industrial clients
• Leverage relationships with industrial players to create additional growth opportunities
• Increase Augwind's UVP (unique value proposition) by developing exclusive solutions and system configurations
• Enhance Augwind's energy efficiency capabilities by expanding its management team, OEMs, collaborations and potential acquisitions

AIRBATTERY: FROM YAHEL TO GLOBAL DEPLOYMENT

1MWh Project in the southern part of Israel, a (small) commercial-scale pilot

AIRBATTERY'S ROADMAP TO GLOBAL COMMERCIAL SUCCESS RELIES ON 3 PILLARS

AIRBATTERY AS A COMPETITIVE LONG DURATION SOLUTION COMPARATIVE ANALYSIS A

8 hrs. AirBattery Total Cost of Ownership (TCO) difference vs. Li-Ion (%), NPV(1)

RTE(1) Price (\$/KWh)	300	275	250	225	200
65%	-1%	-7%	-12%	-18%	-24%
70%	-5%	-11%	-16%	-22%	-28%
75%	-9%	-14%	-20%	-25%	-31%

Li-Ion base case assumptions:

• CAPEX: \$250/kWh*

• RTE(1) : 86%

(1) Illustrative analysis, based on the following additional assumptions: Project Duration: 30 Years; Charge costs: \$20/MWh; Li-Ion degradation: 2% p.a.; Li-Ion O&M: 1%-2%; WACC: 4%; Li-Ion full replacement after 15 years at 50% of initial CAPEX; RTE – Round Trip Efficiency

* Including full installation, civil, and logistic costs (ready on-site)

SCALING-UP IS ALREADY UNDERWAY FOCUS ON LONG DURATION, UTILITY SCALE & COMPRESSED AIR INTEGRATION B

LOCAL CAPABILITIES & SOURCING ARE KEY TO SUCCESS AIRBATTERY INCLUDES SIGNIFICANT LOCAL CONTENT C

AirBattery is a combination of a novel energy technology and a local infrastructure project Costs & use-cases are influenced by geography

STRATEGIC PARTNERSHIPS AND COLLABORATIONS TO ENHANCE AUGWIND'S CAPABILITIES C

Focus on strategic partners with significant value-added capabilities, either locally or globally, such as:

MAXIMIZE AIR BATTERY'S VALUE UNDER VARIOUS BUSINESS MODELS

AUGWIND'S NEW LEADERSHIP TEAM SET TO LEAD THE ROAD TO GLOBAL IMPLEMENTATION

2022 WILL BE A PIVOTAL YEAR FOR AUGWIND

KEY TARGETS FOR 2022

• Identify & focus on AirBattery's strongest use-cases & market verticals
• Continue technological roadmap to improve RTE & reduce costs
• Create strategic partnerships to enhance Augwind's capabilities and support geographic expansion plans
• Construct first commercial demonstration project of 5-10MWh and develop additional demo projects in various geographies
• Expand value proposition for industrial energy efficiency, increase sales & profitability, grow in new geographies
• Further solidify organizational scale up

JOIN US ON THE ROAD TO A CLEANER FUTURE.

Thank you!

For more information: Kobi Vinokur, CFO Kobi.vinokur@aug-wind.com

ADDITIONAL SLIDES

AMBITIOUS CLIMATE TARGETS DRIVE THE HIGH DEMAND FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY

This is the decisive decade…we must make decisions that will avoid the worst consequences of a climate crisis

• Targets: cut carbon emissions by 50-52% below 2005 levels by 2030
  • Target 32% renewable energy and 32.5% improvement in energy efficiency by 2030
• Govt' publish energy storage guidelines to achieve the need for 27GW/108GWh of storage
• 25 States have mandatory Energy Efficiency Resource Standards or Goals

Energy efficiency increases industries' competitiveness and reduces energy bills

Source: President Biden at the Virtual Leaders Summit on Climate Opening Session, Reuters, dsireusa.org

AUGWIND'S CORE TECHNOLOGY IN THE HEART OF TWO INNOVATIVE LINES OF PRODUCTS

AirBattery Energy Storage System AirSmart Industrial Energy Efficiency AirX Patented technology for safe, reliable and cost-effective underground storage of compressed air & gas 18 patents granted 13 pending

AIRX IS USED FOR UNDERGROUND STORAGE OF COMPRESSED AIR AIRBATTERY IS BASED ON A PROVEN TECHNOLOGY

Providing safe, cost-effective storage with minimal footprint

AIRBATTERY: A SCALABLE AND DURABLE ENERGY STORAGE SOLUTION WITH MINIMAL FOOTPRINT

CHARGE DISCHARGE STORAGE

Multiple daily cycles with no degradation

3.5m

Transmission & Distribution

Peaking capacity & Energy shifting

Bulk energy & Longer duration

ELECTROCHEMICAL SOLUTIONS POSE RISKS AND COMPLEXITIES

THE NEED FOR COMPRESSED AIR ENERGY EFFICIENCY SOLUTIONS

• Compressed air is an integral part of most manufacturing processes
• However, it is one of the most inefficient, expensive and misused utilities in manufacturing plants
• Energy used for air compression may account for 10%-30% of the overall electricity bill of a typical plant
• Industrial compressed-air, and the global ambition for carbon emissions reduction create a huge opportunity for Augwind

Source: M.L. Stowe "Compressed Air Basics", American Institute of Chemical Engineers.

AIRSMART SYSTEM ARCHITECTURE ALLOWS A SAFE AND EFFICIENT INSTALLATION FOR INDUSTRIAL PLANTS

Installed underneath operational/ functional areas of the plant With no footprint and minimal maintenance