Tadiran Group Ltd.

Investor Presentation • May 12, 2021

Q1-2021: Investor presentation

TADIRAN

This presentation was prepared by Tadian Holdings Ltd.) (fereinater: "he Company and for the "Group" and ! on Tadian" on Tadian" on Tadian" on Tadian" as a geneal presentation about the Company and is not in the Company's lul reports to the Securities wuthorly and the Stock Exchange. Val. in 19. Avir Ltd. Including, inter alle, the Company's periods report in 200, first quater 2021, and immediate reports (he einater) Company Reports") prior to making a decision regarding investment in the Company's securities.

the internation contained in the presentation acking recommendation, opinin regarding investment, does not on the to mest and pr purchase securities of the Company land in patitute an "ther to the public" or "sale to the public" of any knot" and does not repacted interest of examination and personal applies acording to the univers. Such an offer shall be mace only in accordance with the provisions of the lay, atte obtaining the necessary permits from the Securities Authority and the stock exchange.

This presentation includes a summary of the context in which they are discussed and not the fill intomation available to the Company in elain to these issus and does not include the fill results and the Company and the notes to them, and in the Company's business plans and in the Company's risk factors.

lhe presentation includes data mineral indusing grown volumes, penefition rates, statsidis, etc. It should be emplosized that the 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 as defined in the Securities Law, 1988 Personaling intomation", including forceasts, subjective assesments by the Company's management as the pesentation, which although the Cimpany believes are reasonable, Witch are inhereity uncertain, estimates and information regarding future events.

The forvard-looking intrmation is solely aimed at the uncertain, uncertain, uncertain, uncertain, unpredicted by fractors beyond the company, each of which, or a ombination the ed ation of which risk laturs characteries the Company's addities, may materially impar results. The Company and cause the actual results to be materially different from the forward-looking information.

Except as an undertaing to disease information as required to the Company the Company the Company does not undertake or proacy of change any intimation ontained in this presentation in order twents and for will apply after the date of its preparation. It s clarifed the Company's plans and strategy included in this presentation and their publication and will drange in accordance with the decision of the Ompany's Board of Directors from time to time.

Without detacting from the generally of the above, the presentation, inter alla, regarding the Company's writing principle, the Company's business plans in connection with Air Care Oz technique of energy adivity, product maketing and development, growth potential in the coming years including alwarding the realization of the grown strategy by two years, is inwadeling internation of the all, inter all, inter all, inter all, inter all, inter Company's goals.

The Company's assessments regarding the Company's assessments regarding tends in the Company's business in particler and the market in which the Company sperates in general, as well as the Company's managements regarding potential and market trends in lsteel and international makels as of this report. The materialize and in materialize significantly offerently inter alla, as a result of factors etserral to the Company and under control, including, inter all, phanges in the economic stuation in Irrael in general Different from those that the Company's management estimates as of this report, the non-realization of the potential into rhemational markets in general, and in particlar thise isted above, regulative realizion of some of the risk factors decorded in the Company reports, continued potential effects. These assesments may not materialize and for materially form the Company's assessments, interaka as a cesul of lacker and which are not under control, including, in the economic situation in Israel in the marel in which the Ompany perseas in pricular, development of new and in the entitled the Umpany's management estimates as of this report, fall. e to penel ate in general and in particular those lised and the realization of isk factors described in the Company's reports, the continuation of posmial effects of the corona crisis and so on.

to the edent that there is a conlibit to ween and wrat is stated in the Umpany's reports required by Jaw, what is states in the Umpany's reports will prevail.

Our vision

3

"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

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

Q1-2021 in numbers

20 EBITDA increase 72.8%

Operating profit 39.3 ILS million

Net profit 30.2 ILS million

Net profit increase

76.4%

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

billion in the next decade (in terms of equipment and construction)

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 for the Energy Authority production arges for enewale energy on 230 August 2002 and and litty: (jww.t wroter and the combream.com in actually in a beaction in actuall 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 also a for anying out the might, the trial epoted with the procant the inqueriner and the corporation, the sopped the partic proposita, at, is considered as Forwards as delines in the Septites are company's subjective assessment and initially with the proped. The Enver-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)

Operating profit

—

Net profit (NIS in millions)

—

Dividend distribution (NIS in millions)

Since 2016, Tadiran has distributed NIS 210.2 million of dividends.

Dividend distribution based on annual results.

Summary balance sheet /(NIS in millions)

	31.03.21
Cash and cash equivalents	748.9
Other current assets	485.4
Non-current assets	186.8
lotal assets	921-1
Current liabilities	383.0
Non-current liabilities	154.5
Equity	383.6
Total liabilities and equity	921.1

31.03.20	31.12.20
125.7	329.5
407.1	341.1
143.1	138.1
675.9	808.8
280.7	253.7
56.9	156.6
338.3	398.5
675.9	808.8

Key financial ratios

Ratio	31.03.21	31.03.20	31.12.20
Current ratio	1.92	1.90	2.64
Quick ratio	1.35	1.28	2.1
=quity to assets	41.6%	50.0%	49.3%
Net financial debt (NIS millions)	-113.0	-92.0	-176.8
Net debt to equity	-0.6	-0.8	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 extision of gratis transport was shown in the Seconder and realized in the Seconder and this desires and this de, is 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 natedia and to natellially of the be coppassements, inte dia, as a result of hotors search the compression in the star for beland on main or main of me local or main compress 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.

Key principles of the group's strategic plan and growth

and innovative value proposition for air treatment

synergistic activity in Israel renewable energy

market: Home and Commercial Air Conditioning

•

TADIRAN Global deployment

· I roll be quisiti a circuit e open concentration to submit con and more and more and many cased in the pressed of the deportador provension in be deciming compressed of the · Inchesional of the source of the Source and the Supply (care of the brighters optidation) in the more of the hopped on the final may of development of Medical regiments des nymanini and matakay in taqleessand, wali sambili hammandi iling taaliyaan tooriinidiri irraa eemaniini irraa eemanimaaliyaa marka maalindirii haa aamaa inaanaa mahaalaanaa m Cincipio na agenera assess as t'he dee differ and revelongeral, ad incribula ther the states and market of the collection of the callery of the contribution in the relaces an

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 intraction the Company s some of reneade energy at this in the Group is Formation a defined in the Scoulies Law brand, inter alle, on the Goups schipcioners of this de, i the rends in the Group businesses in pribat the market in white the Goup operation popularity in relation on operital and trend in telebility of the field of the field of the interational names a of the conc. These assessments may of materially offeren way for the Groups assessers, inter all of fourse eternal of fourse entral of fourse entral of f control including change in the state of the make in which the Conney coreas in particial, development of near 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

25

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

Construction

Import of raw materials and processing in Israel

• Development of unique 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