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Scodix Ltd.

Investor Presentation Apr 19, 2021

7037_rns_2021-04-19_32805abd-ae52-4ced-960f-a6c7a6d54984.pdf

Investor Presentation

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Investor presentation IPO April 2021

Disclaimer

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Scodix Ltd. (the "Company") and should not be regarded as a recommendation or an opinion. The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its

business.

This Presentation includes forecasts, estimates, assessments, expectations and other information, intent or belief pertaining to future events and/or matters, whose materialization is uncertain and is beyond the Company's control, and which constitute forward looking statements, which in its nature involve risks and uncertainties. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. 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. Unless required by law, the Company may decline updating or revising any of the forward-looking statements, whether as a result of new information, future events or otherwise.

Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent third-party sources the accuracy of such information and the assumptions on which such information is based have not been independently verified.

The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.

This Presentation shall not form the basis of, or be relied on, in connection with, any contract, commitment or any investment decision.

None of the Company or any of its affiliates, advisers or representatives shall have any liability whatsoever for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this Presentation or its contents or otherwise arising in connection with this Presentation. This Presentation nor any of its contents may be used without the prior written consent of the Company.

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Presenters

Eli Grinberg CEO and Co-founder

Amit Shvartz GM Scodix Israel and COO

The Scodix Digital Enhancement

Accurate, patented Inkjet process to add variable and personalized special effects to:

  • Packages
  • Greeting cards, albums, business cards, brochures, books, invitation, calendars, and more

The Scodix vision coming to life on the new Xiaomi worldwide introduction

On December 28, 2020 , Xiaomi presented its latest smart phone, where the special edition is with SCODIX CRYSTAL™ DIGITAL ENHANCMENT

In honor of the company's founder, Lei Jun, the Special Edition includes the Lei Jun signature and a special aesthetic effect on the back cover. Under customary glass, ribbed materials across the back of the smartphone shimmer in different colors depending on how the light hits the glass. Xiaomi has simulated the dazzling effect on the smartphone packaging using Scodix Crystal.

The Xiaomi MI 11 is the first Snapdragon 888 Powered smartphone in the world and, as a flagship product for the company, packs a top-tier display, premium speakers, great cameras, and more.

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The time is now

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Scodix

  • Disruptive mature technology
  • New products to address the packaging market
  • 360 systems worldwide
  • WW infrastructure
  • Consumable business model
  • Experienced management team

Targeting massive opportunity in the packaging market

Founded 2007, Sales from 2011

\$190M sales

83 Employees

41 patents, 10 patent families

Over 360 installation worldwide

Strong growing recurring revenue

Blue ocean, \$10B TAM

Green, Disruptive technology

The digital revolution in print

Management team

Eli Grinberg CEO and Co founder

Amit Shvartz GM Scodix Israel and COO

Guy Alon VP R&D

Dov Ofer Chairman

Nigel Tracy VP BD & Marketing

Jason Rollo President North America

Leading Investors:

Shahar Seidon CFO

Ziki Kuly VP APJ & Product Marketing

Selected brands using Scodix

Consumer Goods

AMERICAN
EXPRESS

Consumer Electronics

Over 360 systems worldwide

Go to Market:

Direct in North America and major territories in Europe

Chain of distribution partners WW

WW infrastructure of sales, customer support and polymer sales

Scodix presses product offering

Commercial E-Commerce Packaging
Scodix Ultra 1000
Scodix Ultra 2000
Scodix Ultra 3000
Scodix Ultra 4000
Scodix Ultra 5000
Scodix Ultra 6000

The Scodix Ultra advantage:

  • Fully digital no tooling, close to zero setup, minimal waste with easy operation
  • Automatic optical registration per sheet
  • Variable and personalized printing support
  • Variable Sheet size: up to 1060 X 760 mm, 1.5 m sheet pile height
  • Substrate Range:
    • Wide range of paperboards 135 800 gsm
    • Wide range of plastic substrate and metalized boards
    • Works on offset, digital print, WB coating and a wide range of laminations
  • Speed 1250 sheets per hour

Strong recurring revenue model: Polymers + Service

  • Strong recurring revenue even during Covid-19
  • All polymers are developed by the Scodix team of chemistry experts
  • Manufactured in the Scodix Polymer Plant

Scodix technology

Unique inkjet, polymer and process technology, getting the worlds best:

  • Fine details
  • Variable enhancement
  • Substrates
  • Print Processes
  • IP – 41 patents from 10 patent families

Disruptive Eureka technology, to digitally print foil effect through Inkjet and process technology

Strong multi discipline skill set

  • Chemistry
  • Software
  • Mechanics
  • Electronics & Data path
  • Ink jet process

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Target markets

Packaging Market Size:\$960B 2.8% Annual Growth \$28B in 2024 digital printing

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Scodix TAM: \$5B

E-Commerce print Market Size:\$24B 5.1% Annual Growth \$15B in 2024 digital printing

Scodix TAM: \$3B

Commercial Market Size:\$270B Stable \$40B in 2024 digital printing

Scodix TAM: \$2B

The Future of Global Packaging to 2024, Smithers Pira, December 2019

Association for Print Technologies - PRIMIR Research Unit, 2018. Outlook for the Global Web-to-Print Market

The packaging market

Traditional industry on the move to digital

Annual industry growth of 2.8% through 2024

Digital print growing to 19.5% in 2024

50% of jobs are less than 6000 sheets

The Future of Global Packaging to 2024, Smithers Pira, December 2019

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NOW IS THE RIGHT TIME TO ENTER THE MARKET

Scodix in packaging Mass production to mass customization and personalization

Scodix unique value proposition for packaging :

  • Time to market hours instead of weeks
  • Immediate sampling and testing of design options
  • Saves cost on short and medium runs
  • Unlimited variations
  • Personalization

E-Commerce print

E-Commerce in print includes: Greeting cards, photo albums, business cards, wedding invitation, save the date cards, and more

Scodix unique e-commerce value proposition:

Personalization

Time to market – immediate production

Automated workflow

\$ 138M Sales

"Scodix allows us to add the luxurious embellishments needed to make our customers feel that they're producing something special. This level of enhancement is not something we were able to offer before with our online service. Personalization is an increasingly popular trend and one we know our customers love"

"Partnering with Scodix is a \$ 1980M Sales

natural way for us to offer cutting edge digital embellishments technology to our customers. We were thrilled to launch customizable foil as part of our Holiday card offering"

Over 50M Scodix Cards in 2020 Holiday Seasons

Commercial

Scodix unique commercial value proposition:

Add value to print products

Allow the commercial printer to charge more

Short run digital solution

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Implemented on variety of products

Mega trends driving Scodix success

Production Efficiency E-Commerce Sustainability

Production efficiency The Scodix manufacturing advantage

Scodix Process

Analog Process

Scodix offering concept Scodix Ultra platform replaces five analog systems

Silk Screen Glitter Foil / Embossed Cast&Cure Braille
ASP (K\$) 200-300 100-300 300-1,300 500-1,000 50-150
Required Space (Sqm) 80-200 20-40 100-120 20-40 5-10
Dedicated Operators 1-2 1 1 1 1

E-Commerce

Trends:

  • 27.6% growth from 2019 to 2020
  • 21.8% of all retail sales will be e-commerce by 2024

Demands:

  • Fast Turnaround
  • Shorter supply cycles
  • Shorter run length
  • Flexibility
  • Massive effect on packaging

Sustainability

Current Analogue manufacturing Scodix

Discharge of chemicals, molds, plates, pallets and other wastes

Very long print runs that creates waste throughout all the supply chain

Long setup times that requires larger head count

High energy consumption with large footprint systems

No one-time disposables such as plates, molds or screens

Print exactly what you need approach and architecture

No VOC or other polluting gasses

Compact and power efficient systems

Easy to operate, setup and maintain

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Scodix Ultra 6000 – Unique Value Proposition

Scodix financials

Revenue

29% Gross Margin

14% Gross Margin

2020

2019

27

Not extracted from financial statements

The Scodix opportunity

Targeting the packaging industry

Mature technology, Over 360 customers WW

The packaging market – Blue ocean for digital solutions

Growing recurring revenue model \$7M in 2020

\$10B TAM

Experienced management team, backed by leading investors

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