Tadiran Group Ltd.

Investor Presentation • Aug 11, 2021

Q2-2021: Investor presentation

TADIRAN

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 2020, second quarter 2021, 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.

Our vision

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"Impact health and life quality through air care and improved living space, introducing innovative and environment friendly solutions"

Contents

4

• · Company Summary
• Financial data
• · Progress in implementing the strategy

With a strong brand, Tadiran is leading the industry

Tadiran is the leading air conditioning company in Israel Seen continuous growth in market share in recent years, achieving approx. 40% of total

market share in 2020*

Industry leader for service and main distribution channels

Strong financial results

Siqnificant increase in revenues in the last five years, with strong net profit and strong cash flow

Achieved an upward trend in debt rating to At Stable, rated by Midroog (Moody's subsidiary)

An Israeli super brand on an international scale 60 years of activity in Israel Featured on Superbrands 3 years in a row A well-known brand in the world with an emphasis on Europe

*Source: Company's estimations

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Tadiran - 60 years of activity in Israel and globally

1962

Tadiran was established

1983

Opened manufacturing facility in Afula, Northern Israel

2019

Launched marketing campaign with Hollywood actor Morgan Freeman

2017

Tadiran becomes part of Tel Aviv-125 Index

2002

Carrier purchases Tadiran and starts export activities

2010

Mr. Moshe Mamrud becomes largest shareholder via acquisition from Carrier

2020

Publicly launched global growth strategy

2021

Acquisition of Tadiran Solar and strengthening of renewable energy activity

Q2-2021 İn numbers

20 EBITDA increase 35.9 %

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56.9 ILS million

Net profit 40.2 ILS million

Net profit increase

33.4 %

The group's activities support the implementation

• A unique product based on Air Care 02 technology
• Intellectual property, ● development capabilities and technological roadmap
• Potential global and ● growing market
• The leading air conditioning brand in Israel
• · Independent development capabilities
• Advanced production, service and logistics system
• Overseas growth potential .

1 It should be clarified that as of this date the Company has no material activity in this field The diagram above dees nd represent areas of activity in acordance with the company's strategy and business objectives

Tadiran Renewable Energy

• A one stop shop for solar energy systems
• A solid base of customers and suppliers
• · Growth potential and synergies with Tadiran's core business
• Energy efficiency

Air conditioning market in Israel

Total market volume is approx. NIS 3.0 billion

Residential air conditioners

VRF

Market size (NIS in millions)

(

Source: Company's estimations based on 2020 financial report.

( ~240 ~ )

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

PV volume installed1

10

Estimated market size in 2021² Residential roofs

Commercial-industrial roofs

NIS 250-300 million

Tadiran Solar already operates in these segments

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

1. Data from the Energy Author arges for renevale energy or 230 August 200 and accompanying Enel sheet and litts: jawa terrare ann imm acauses to e continent comments comment 2. Evaluation of Tadiran Solar's management for 2021 and market surveys (equipment only), data from the Energy Authority

Solar farms

Energy efficiency

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 are expected to be installed in 9 hospitals throughout Israel.

Total expected expenses are estimated at NIS 96 million (approximately NIS 22 million in respect of installation costs and approximately NIS 74 million in respect of maintenance and other expenses).

As of 31.12.2020:

• In the lighting and thermal fields: The first phase of the project has been completed.
• In the field of heating: The project is nearing completion in 2 hospitals.

The himmator presents that high out the project, the title lepsee in concept with the procation the cope of the inquiremation, the sopped the partic primer control one pot co is considered as Forwards, as deliner in the Septites are company's subjective assessment and iniliarly with the proped. The Enver-edition of he Envol-editing hilomator will the affected by factor in a cance and and and and and and and the Company scription intried bles, specifines many of the cruigit and issues related to policy and / or actual Ministry of Health and Hospitals.

Contents

12

• · Company Summary
• Financial data
• · Progress in implementing the strategy

Includes NIS 69 from discontinued operations that were subsequently classified as continuing operations.

Operating profit (NIS in millions)

Net profit (NIS in millions)

Dividend distribution (NIS in millions)

Dividend distribution based on annual results.

Summary balance sheet /(NIS in millions)

	30.06.21
Cash and cash equivalents	212.2
Other current assets	588.7
Non-current assets	189.3
lotal assets	989.8
Current liabilities	425.9
Non-current liabilities	139.8
Equity	424.0
Total liabilities and equity	989.8

30.06.20	31.12.20
264.4	329.5
468.4	341.1
143.9	138.1
876.7	808.8
350.3	253.7
157.8	156.6
368.7	398.5
876.7	808.8

Key financial ratios

Ratio	30.06.21	30.06.20	31.12.20
Current ratio	1.88	2.09	2.64
Quick ratio	1.24	1.48	2.1
Equity to assets	42.8%	42.1%	49.3%
Net financial debt (NIS millions)	-88.3	-111.8	-176.8
Net debt to equity	-0.4	-0.9	ー1.1

Contents

• · Company Summary
• Financial data
• · Progress in implementing the strategy

Shortening the growth strategy target by two years

The formain in the state more of the realizion of graths transport was shown in the Seconder and realized in the Seconder and this desir, the direction of the dip, no ne colo esimales of the Orgel businesse in patibilar, and tents in hasel, the feld to a lengthis and the intentions markets and the date of the entil The entil. The entil The entil T national in materially offeren way for the dij, as a result of hotors search of he compression in the recommind on the steen the stable comprise in the sted for he promine on and tennad in which the company production in the Poply on the Smart stimates and the oped the nort the more the more in incereal perclaim in the restrain in interest and in particular those listed above, regulatory changes and the risk factors described in the Company's reports.

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Key principles of the group's strategic plan and growth

value proposition for air treatment

synergistic activity in Israel renewable energy

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market: Home and Commercial Air Conditioning

•

TADIRAN Global deployment

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Synergistic activity in Israel: Renewable energy

Tadiran's entry into the renewable energy market through the acquisition of 75% of the shares of Tadiran Solar completed in January 2021

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

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

The renewable energy activity will reflect approx. 25% of Tadiran Group's activity. The Group works to realize synergies and expand the value proposition in this seament

the intrimation regarding the sope of reneade energy at this in the Group is one cologing more and the same interest of the days of the days of this day in the direct of thi the rends in the Group businesses in pribat the market in whith the Goup operation popular assements in relation or operital and tends in the field of the field of the field interational nated a of this conc. These assessments not of contraction of for the Groups assessers, inter all of fourse eternal of fourse eternal of fourse entral of forces ontrol including change in the state of the make in which the Conney operits in pricision, development of need the Coups maragenet scimates of the det the det the detect the reent, the nor-realizion of the maters in general, and in pricular those like the elizition of some of the risk factors sessibled in the Compons report.

Tadiran's core area: Design, equipment and distribution

Entry into the growing sector: Solar energy

Tadiran Solar's value proposition

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.

Solar panels

Authorized distributor of JINKO manufacturer

Optimization systems

Converters, optimizers, monitoring - a leading international panel | devices. The company is a leading distributor of SolarEdge converters

Activities of the acquired company: planning, marketing and distribution

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

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Construction

Import of raw materials and processing in Israel

products and launch of solutions in the solar world

Entering Growing Markets: Exploring investment in Europe

Gradual entry based on the acquisition of companies with sales of tens of millions of USD

Leverage the local brand and the gradually introduce the Tadiran brand

Implementation of service standards and operations in accordance with market needs while implementing Tadiran capabilities

Eaunch of new products according to market needs while leveraging ladiran's engineering capabilities

Exploitation of synergies in development, production and procurement (including export benefits)

The company is working to realize this strategy and examines investment opportunities in the European market

Preserving the lead in the local market: Residential and commercial air conditioning

Expansion of activities and preserving and cultivating the distribution channels

Launching unique and innovative products

Increasing activity in the commercial market

Realization of synergies with other areas of activity