The natural evolution of the textile industry Sonovia

Company Deck, September 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.

The company keeps enhancing the technology division by bringing in more R&D and Technology talents, strengthening R&D labs and building more engineering power after the strategic decision we took in April 2022 to gradually shut down the Products division. By that, we can focus on our main vision - Disrupting the Textile industry with our green materials and solutions.

We have completed our Industrial machine installation and initial testrun at Delta Galil site in Karmiel, Israel, a very significant milestone for the company since it is the first installation of our solution in a real customer environment. We are now validating the machine and process with internal tests, and in a few months we will start our joint testing with Delta and its brands.

We keep seeing consistent outstanding performances in our green process and materials, reaching 100+ washing durability with extremely high efficacy on tested fabrics of different types with record low concentrations of chemistry, and proven tested superiority against the currently market leading products.

We keep progressing with our pilots towards Beta agreements with leading mills and brands in the textile industry such as Pettenati, Everest and more, and plan to install the first Beta units in the first half of 2023.

We have signed an agreement with our strategic partner Bruckner Textile Machinery which ensures elite quality manufacturing and future commercial cooperation.

We are progressing with our Indigo Yarn Dyeing project, conducted in cooperation with our commercial partner PureDenim in Italy, and showing very good results in the first tests performed at site, demonstrating drastic reduction of customer' production costs and pollution: water waste, chemicals and energy.

Sonovia has issued and released an ESG report based on our promise to dramatically mitigate the pollution caused by current textile finishing & dyeing, and we were among the 11 Israeli start-ups entering the Maala index this year at the Tel-Aviv Stock Exchange.

With the progress above, we keep moving the company to reach its goals in 2022 and towards the commercialization of existing and new products (equipment and consumables), while keeping our sight on our vision – To conquer the textile finishing & dyeing market for decades to come.

Company ID

CEO Igal Zeitun

CFO David Seligman

Roy Hirsch

CTO Liat Goldhammer

VP R&D/chem Dr. Aaron Garzon

VP R&D/system Sam Rubin

CIR Shay Herchcovici

VP HR Yonati Davidson

where we come from

Industry	Textile
Field	Finishing & Dyeing
Technology	Sustainable & elite-performing ultrasonic finishing & dyeing
Business model	"Razor/Razor blade" (machine + consumables)
HQ & R&D	Ramat-Gan, Israel
Employees	38 (70% in R&D)
Patents	2 granted, 5 pending
Cash	US\$14m (June/22)
Other	Public TLV:SONO [ESG index]

OUR MISSION To eliminate the massive pollution caused by textile finishing & dyeing, while significantly reducing cost and increasing performance. 05

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

Textiles are everywhere

Dyeing Fire Retardancy

Odor control

Water repellency

control

Temp. Softening

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

Supply Chain

Synthetic rawmaterial material

Cutting and sewing Fiber Yarn Fabric Brand/End-

user

Pre-treatment, Dyeing & finishing

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

We target the heart of the problem.

Our technology makes use of high-performance physical impregnation of proprietary functional & dye chemistries onto textiles.

Clean chemistry
Less water/energy
Reducing OPEX costs
Superior performance & durability
Fiber type agnostic
Easy tech integration

Breakthrough durability

Anti-microbial finishing Post 50 laundries, 40℃

Water repellency finishing Post 50 laundries, 40℃

We outperformed market leading products Efficacy tested by BV Hong Kong on 4 leading fabric types, using 2 representative bacteria and according to both ISO and AATCC standards.
	Cost of chemistry per KG fabric	Efficacy after 50 washings	Efficacy after 100 washings
Sonovia	\$0.7*	>99.9%	97%
Competitor A (organofunctional silane)	\$0.5	74%	64%
Competitor B (Silver NItrate)	\$1.4	84%	Awaiting results (failed at 50 washes)
Competitor C (Amino saccharide & inorganic salt)	\$0.7	81%	Awaiting results (failed at 50 washes)
Competitor D	\$1.2	79%	74%

The SONOfix™ will enable to perform a variety of applications using Sonovia's proprietary chemistries. 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.

14 In addition to what we can disclose, we are working in stealth mode with many of the world's leading mills and brands.

Who are we working with?

Other Partners

Other Supporters

Global leading fabric finishing machinery manufacturer
Signed manufacturing & commercial agreement
Based in Leonberg, Germany

Global leading OEM/ODM supplying to global brands
Installed a SONOfix™ machine in innovation line
Based in Karmiel, Israel
Global leading denim manufacturer to luxury brands
Commercial partner of Sonovia in the D(y)ENIM project
Based in Milan, Italy

BIOdome™ Anti-microbial/viral

NioiX™ Odor-control

D(y)ENIM™ Indigo dyeing

Our applications We will revolutionise the textile market one application at a time.

everDRY™ water repellency

D(y)ENIM™ Our partner & next steps

Global leading Denim manufacturer
Serving leading luxury denim brands
At the forefront of adopting innovation

NEXT STEPS • 2022: POC to be concluded, Scale-up to start

-

• 2023: Industrial installation at PureDenim

¹⁷ "This technology is the Tesla of Indigo dyeing" Gigi Caccia, PureDenim

D(y)ENIM™ THE WORLD'S GREENEST INDIGO DYEING TECHNOLOGY

Dyebath Skyeing

1 – 2 dye baths* 8 – 12 dye baths

VS.

70% - 80% less water*

70% less cost*

100% clean chemistry* 1,500 liter of water per bath

Long & costly process

Use of many toxic chemistries, including Hydrosulphite

*Based upon preliminary data that was obtained during the ongoing POC project

D(y)ENIM™ Sample photos of technology output

Our Business model

"Razor/Razor-blade" 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, per each machine.

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

1H/2022 financial highlights • \$14.2m cash reserve, June/22 (vs. \$20m on Dec 2021)

Focused R&D efforts (\$2.1m in 1H-2022)
38 employees (70% in R&D)
22 • Use of funds in H1/22:
- \$3.8m used for operations (~US\$0.6m/monthly burn rate)
- \$1.2m used to reduce liabilities
- \$0.4m used for R&D Capital Equipment
- Cash reserves sufficient to complete tech commercialization and ramp-up

Forward looking

		2023	2024	2025	2026
	Forecast, commercialization	Beta/s	Expedited growth
23		NioiX™	NioiX™	NioiX™	NioiX™
Forecast, available applications		BIOdome™	BIOdome™	BIOdome™	BIOdome™
		everyDRY™	everyDRY™	everyDRY™	everyDRY™
			D(y)ENIM™	D(y)ENIM™	D(y)ENIM™
			+1 product	+2 products	+4 products

AI Terminal

Sonovia Ltd.

7054_rns_2022-09-21_01002706-0969-421b-b784-97146a9a0624.pdf