Ackerstein Group Ltd. — Investor Presentation 2022

May 18, 2022

INVESTOR PRESENTATION MAY 2022

Disclaimer

This presentation was prepared by the Ackerstein Group Ltd. (the "Company" and / or the "Group") as a general presentation about the Company and is not intended to replace the need to review the Company's full reports to the Tel Aviv Securities Authority and the Tel Aviv Stock Exchange Ltd. Among other things, the Company's periodic reports, including the Company's periodic report for 2021 and the Company's immediate reports ("the Company's Reports"), prior to making a decision regarding the Company's investment in 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 - as defined in the Securities Law, 5728 - 1968 ("the Law") and does not replace an independent examination and personal advice in accordance with the special data of each investor. Such an offer will be made only in accordance with the provisions of the Law, after receiving the necessary permits from the Securities Authority and the stock exchange. This presentation includes a summary of the issues described in it in the context in which they are discussed and not the full information available to the Company in relation to these issues and / or which has appeared and will appear in the Company's Reports. The presentation includes data on possible growth volumes, statistics, etc. It should be emphasized that data on growth volumes and statistics are based on public data and Company estimates and do not constitute any facts and / or representations. This presentation may include forward-looking information as defined in the Law ("Forward-Looking Information") including estimates and information regarding future events, forecasts and subjective assessments of the Company's management as of the date of publication of the presentation, which although the Company believes to be reasonable, are inherently uncertain. Such Forward-Looking Information is uncertain, unpredictable, influenced by factors beyond the Company's control, each of which or a combination thereof and the realization of which risk factors characterize the Company's operations (as specified in its reports) may result in its partial realization, non-realization or realization fundamentally different. Subject to the Law, 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 publication.

Leading the market for almost a century

Israel's leading provider of concrete products and solutions for environmental development, landscape design, construction and infrastructure

(1) EBITDA includes operating profit, depreciation and amortization less income from real estate reappraisal (2) EBITDA excludes other expenses for 2021

Operating across 4 synergetic segments in thriving sectors

Wherever you look ...

On the go

At rest

Ackerstein is an integral part of infrastructure & construction projects in Israel

What the future hold?

Residents will be added to Israel's population Every 5 years, approximately 1 Million

7

Israel's needs

by 2040 HOUSING Construction of over 1 million housing units¹

Construction & replacement of infrastructure

Transportation, water, drainage & sewerage

Significant shortage of construction industry workers reinforces the need for precast concrete construction

INFRASTRUCTURES

30k additional classrooms & kindergartens²

Israel is on the verge of a tremendous building momentum Expected investment in housing & infrastructure by 2030 ^>300B ILS Infrastructure plan¹ 240 projects ^>288B ILS ~184B ILS transportation ~ 25B ILS water & sewage infrastructure ~ 34B ILS government constructions & social infrastructure Housing plan² 500,000 housing units by 2025 ~ 13.5B ILS Infrastructure investments for housing support Additional projects ~150B ILS Tel Aviv area metro estimated cost³ Israel Railways: Doubling the length of the tracks in next decade, 46B ILS investment in the next five years4

(1) Infrastructure for Growth, Prime MiILSter's Office and Company Assessments (2) Government Housing Plan, MiILStry of Finance (3) Metro, Globes (4) Israel Railways, Globes 9

Going from plans to implementation

Tel Aviv metropolitan area metro law passed by the Committee for National Infrastructure Projects; project estimated at ~150B ILS¹

01 2022

Construction teams selected for Tel Aviv metropolitan area light rail - green and purple lines at cost of ~30B ILS²

01 2022

Connection of the desalination plant in the Western Galilee at cost of ~300M ILS⁴

New sewage project in Tel Aviv metropolitan area estimated at ~2.6B ILS³

01 2021

Expansion of the Tel Aviv metropolitan area sewage treatment plant estimated at ~605M ILS⁵

Unique core competences

Allows integration into any construction or infrastructure project in Israel

Financial strength enables investments in innovative products Nationwide deployment of advanced production facilities and delivery capacity Extensive professional knowledge experience across diverse projects Widest variety of products & solutions under one roof

and processes

from the municipal to the national level

Ackerstein is paving the way for the future

13

Strategic focus for continued profitable growth

Strategic focus for continued profitable growth

Development, design and production of products for construction, infrastructure, and landscape design

Industry segment

Diverse customers & projects

Provide products for hundreds of public and private projects across a broad base of customers

Wide range of products

Offering the widest selection of products under one roof strengthens the competitive advantage and market leadership

17

Strategic focus

Maintain market leadership and enter new categories

Increasing production capacity

Preparing to support a significant increase in expected demand for the company's products

Leverage core capabilities to enhance offerings

New products in existing categories

Enter other categories in the industry

Utilization of existing resources: Production lines and reputation

Strategic focus for continued profitable growth

Unique solutions for complex projects, above and below ground, with uncompromising quality

Customized solutions for customers and the environment

Diverse client base

Infrastructure contractors, developers, government, and more

Authorized supplier for Israel Railways

Authorized supplier for State of Israel

Customer-focused

Wide range of tailor made solutions

Deep knowledge and extensive experience to provide accurate, expert, quality solution

Innovative production capabilities

Based on latest trends in construction industry

Green construction - energy savings

Prefabricated building For shorter schedules

Infrastructure projects

Water and sewage infrastructure:

Drainage and sewage channeling Shafdan wastewater treatment Project

Desalination plan The Sorek desalination plant project

Transport infrastructure:

Railway ties Expansion of railway tracks by Israel Railways

Acoustic walls Expansion of road infrastructure in Israel Push pipes Sorek desalination plant project

Acoustic walls

Prefabricated construction

Protective rooms and shelters

Prefabricated building

Prefabricated concrete element for Stratasys building

Prefabricated buildings & elements

for residential, industrial, and commercial buildings

Protective rooms and shelters

Railway sleepers Expansion of railway tracks by Israel Railways

Shield walls

Synergetic approach

Prefabricated construction: Concrete buildings and walls

Prefabricated elements: Tribunes, shooting range, protective rooms

Perimeter walls: Decorative fence, cladding

Landscape design products: Curb stones, paving, pipes, seats, benches

Infrastructure products: Drainage pipes and trenches, control cell

Business focus

Activity expansion

Increase activity in industrial construction

Increase the diversity of customers and projects

Integrate into future national construction and infrastructure projects

Investing in innovation

Constant expansion of products and solutions Maximizing the scope of the work for each project Ackerstein Group won a construction tender for a company in the defence sector: expected revenue is 74 M ILS

February 2022

Ackerstein Group was awarded with contract for the Production and supply of wall elements for the National Northern Border Protection Project expected revenue is 141 M ILS April 2022

Strategic focus for continued profitable growth

Pioneer in the production of landscape design products in the West Coast, through its subsidiary Aker -stone

Acker-stone: Snapshot

Local connections and strong reputation

Diverse commercial and residential projects

Customers:

• Distributors with building materials stores
• Landscape design contractors

Establishing relationships with leading architectural firms in each region

Market features

Depends on the execution of projects in the industry

Influenced by the macroeconomic environment Local production and supply

Need for high availability and continuous supply of products

Proximity to the customer

Market Opportunity in Arizona: Phoenix metropolin

Phoenix is the fastest growing city in the U.S. for the fifth year in a row

Strategic location: up to 4 hour flight to all major destinations

Significant growth potential

Phoenix attracts leading companies across diverse industries

Residential real estate:

development momentum of private homes

Source: CBRE Phoenix Metro Market Overview , 2019 AZBIGMEDIA

California market opportunity

Significant size and economic resilience

create many opportunities

Products are positioned as premium products, suitable for residential and commercial projects

Completed major projects on the West Coast:

Disneyland, Apple offices complex, Google offices, Universal Studios, US Navy headquarters, others

Potential demand from different sectors

Google campus

32 Source: siliconvalley.com

Starting sales in additional regions

Strategic fucus

Revenue target of \$100 million

in coming years

34

\$76.5

\$100^M

Strategic focus for continued profitable growth

Strategic holding significant potential for value overflow

	577 k sq m across 9 assets1 About 364k sq m classified as fixed assets	86 k sq m (Built) About 60k sq m classified as fixed assets
870 M ILS real estate value 387M investment properties 483M classified as fixed assets	25 k sq m (built) yielding	5.7 % LTV

Our customers

Local and international leading companies from diverse sectors

Revenue and EBITDA

Consolidated basis, in thousands ILS

	2021	2020	2019
Revenue	640,491	662,771	679,594
EBITDA	100,713	93,977	102,185

Industry and Civil & Industrial

Engineering segments

Revenue	538,285	571,783	575,700
EBITDA	79,872	81,139	75,523

Oversea Industry segment

Revenue	75,887	64,923	78,911
EBITDA	8,359	(1,037)	13,840

Real Estate segment

Revenue	26,319	26,065	24,983
EBITDA	12,482	13,875	12,822

The EBITDA presented above does not include other expenses and income and unallocated expenses (at the total level) Credit: Amit Giron 41

Consolidated balance sheet

As of December 31, 2021, and 2020 in million ILS

Inventory	111	97

Non-current assets		Non-current liabilities
		employment termination

Current assets:	2021	2020	Current liabilities	2021	2020
Cash and cash equivalents	172	74	Credit from banks and other credit providers	151	181
Short-term investments	-	57	Lease current liabilities	5	2
Customers	226	228	Trade payables	79	89
Receivables and others	20	31	Other current liabilities	71	84
Inventory	111	97
Total	529	487	Total	306	356
Non-current assets			Non-current liabilities
Right of use asset, net	31	21	Liabilities to banks and other credit providers	130	75
Investment properties	387	361	Lease liabilities	27	20
Fixed assets	701	535	Liabilities with respect to other benefits after employment termination	6	19
Other	3	4	Deferred taxes, net	208	159
Total	1,122	921	Total non-current liabilities	371	273
			Equity	974	779
Total assets	1,651	1,408	Total liabilities and equity	1,651	1,408

140M ILS

Net debt Financial + Leases

8.5%

Debt ratio

1.4x

Net debt to EBITDA

42

Ackerstein is paving the way for our future

Expected high demand from construction boom in Israel

Expand our offerings

US: Leverage momentum

Value creation potential from real estate holdings

Value-add potential

Proven development and financing capabilities

Portfolio expansion

Financial strength to support future growth

Strong and stable cash flow

Low leverage

Dividend distribution policy Not less than 50% of net income*

43 * Net profit without revaluation of real estate investment