Ackerstein Group Ltd. — Investor Presentation 2023

Mar 27, 2023

INVESTOR PRESENTATION

March 2023

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 2022 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.

Israel's leading manufacturer & provider of concrete products and solutions

for infrastructure, construction and landscape design

Industry Segment

Infrastructure and landscape design products for projects across Israel

Civil & Industrial Engineering Segment

Unique solutions for complex projects with combined prefabricated buildings & elements

Overseas Industry Segment

Landscape design products in Western US

Real Estate Segment

Commercial, industrial and retail properties

Strong growth alongside investment in production capacity

)1( The above amounts in millions of ILS and the growth rate in relation to 2020 )2( After capital raising in the amount of 147 million ILS Investor presentationI March 2023I 4 I

A significant part of Israel's tremendous development and investment momentum

The leading company for the production and supply of products and solutions along the entire value chain, from infrastructure, prefabricated buildings & elements, to landscape design products

A glimpse into the future:

investment and development momentum is expected to grow

By 2050, Israel's population is expected to double

https://www.ice.co.il/auto/news/article/934760

Unprecedented national investment plans,

developing an extensive transportation network, and energy and water infrastructure

240 PROJECTS

Multi-year infrastructure investment plan, 2020-2024

Over ILS 288^B

Transportation: ILS 184B Water & sewage infrastructure: ILS 25B Government & social infrastructure: ILS 34B

TEL AVIV AREA METRO PROJECT

2040 strategic development plan

ISRAEL RAILWAYS Approx. ILS 95^B

400 km of new track and about 55 new passenger stations

Multi-year plan for infrastructure development for the years 2020-2024: source Tel Aviv area metro project: source 2021 Annual report - Israel Railways. link The Marker - Infrastructure 360 conference, November 2022 - link to the article, link to the presentation Public investment policy and structural reforms to increase productivity and growth in the economy, Aharon Institute, September 2022. link Gross domestic investment in infrastructure, CBS. link

Israel should double the current level of investment in infrastructure, particularly in the field of transportation.

Dr. Adi Brander, Bank of Israel, Infrastructure Conference 360

ILS B 90

Investor presentation I March 2023 I 7 I

41

ILS B

2021 2050 F

Advance development Telecom Water Energy Transportation

From planning to execution

After years of planning: the government approved two lines for the Tel Aviv metro project

Ynet 22.5.2022

The metro plan is progressing: a tender has been published for the position of project manager

29.1.2023 Globes

At a cost of three billion shekels: the Tel Aviv metropolitan area sewage expansion project is underway

Israel Today 23.2.2022

The new barrier at seam zone was approved NIS 360 million will be allocated to replace the old fence with a "massive" concrete wall

Ynet 10.4.2022

Investor presentation I March 2023 I 8 I

Power multipliers

integrating into any construction or infrastructure project in Israel

Extensive professional knowledge

with 98 years of experience across diverse projects

Widest variety of products & solutions under one roof

Nationwide deployment of advanced production facilities & delivery capacity

Financial strength enables investment in innovative products and processes

High barriers to entry for competitors

Achievements and strategic focus

in four of our business segments

Industry

Civil & Industrial Engineering

Overseas Industry

Real Estate

Industry segment

2022: Revenue growth and improved profitability

)1( The above amounts in millions of ILS and the growth rate in relation to 2020

(2) 2022 was affected by an increase in raw materials prices, as well as by the interruption of production at the Yerucham plant for the purpose of installing a new production line for landscape design products in the fourth quarter

Investor presentation I March 2023 I 11 I

The widest range of products

for hundreds of public and private projects

Expanded the landscape design production line in 2022

Adding ~10% to the potential production capacity

Civil & Industrial Engineering segment

2022: Strong revenue growth and improved profitability

)1( The above amounts in millions of ILS and the growth rate in relation to 2020

Investor presentation I March 2023 I I

Customized solutions for diverse projects

Diverse client base: infrastructure contractors, developers, government, and more

Authorized supplier for the State of Israel and Israel Railways

Advanced fencing systems

Prefabricated buildings & elements

Protective elements and shelters

Transport infrastructure

Water and sewage infrastructure

Strategic focus for continued profitable growth

in Industry and Civil & Industrial Engineering segments

Expanding activity in prefabricated construction

Entering new categories: industrial building prefabricated building and prefabricated logistics centers

2

1

Continuing to invest in innovation

Constant expansion of products and solutions

3

Integrating future construction and infrastructure projects Maximizing the scope of

work for each project

Prefabricated construction market potential

Sources: )1( CBS (2) Plan for the industrialization of the construction industry 2017: Source

Investor presentation I March 2023 I

17 I

Prefabricated construction: the key to accelerating construction

Expected increase in housing units' construction rate from 50k to 70k annually

Significant shortage in labor

35%-65%

Shorter construction time

Labor saving at construction site

Accurate, high-quality and diverse construction

Smarter Greener

Reduction of construction waste

Higher productivity: 3-4X Reduces noise and air pollution

Improves working conditions and safety

Sources: )1( CBS (2) The National Research Institute for Construction Research link Investor presentation I March 2023 I 18 I

Investor presentation I March 2023 I

Expansion in the prefabricated construction category

Expanding our production capacity

in the existing plant in 2022 and developing production capabilities for future needs

Leveraging capabilities

in the design and execution of industrialized solutions

(thousands of cubic meters)

Expansion of Ackerstein prefabricated production facility

Investor presentation I March 2023 I 19 I

Entering new categories: Industrial buildings and logistics centers

Acquired KALRAM

KALRAM operates in the field of perimeter protection for the business sector, specializing in steel construction & elements

Deal rational

Increasing company offerings, while maximizing KALRAM's potential

Expanding capabilities in construction of industrial buildings

Industrial building & logistics center construction market potential

Key factors for increased demand

Strengthening of online trade and the number of importers

Solutions for small & medium-sized companies that outsource to logistics companies

Need for modern logistics buildings

that integrate technology to allow for improvement in profitability

Demand for residential housing leads to relocation of factories, military bases and storage areas from the center to the periphery

52% Growth in industrial and storage areas in the last decade

Industrial and warehouse building construction starts (in thousands of square meters)

21 I

Overseas Industry segment

Revenue growth alongside operational improvements in production processes

)1( The above amounts in millions of USD and the growth rate in relation to 2020

Investor presentation I March 2023 I 22 I

Landscape design products production pioneer

Operating in the US West Coast

through subsidiary Aker-stone

ম	।,

Customers

• Distributors with building materials stores, landscape design contractors
• Establishing relationships with leading architectural firms in each region

Diverse commercial and residential projects

• 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

Reasons Phoenix continues to be one of the strongest real estate markets in 5 the US:

Growing population

Positive immigration of over 277,000 people in the last five years, mostly from California

Attractive job market

~90,000 new jobs created in 2022

Sunny weather 300+ days of sunshine a year

Strategic location

Up to 4 hour flight to all destinations in the US easy access by train

Business friendly environment

Sources: (1) AZBIGMEDIA 2022 (2) 2023 AZBIGMEDIA (3) Metro Phoenix market overview 2022, CBRE (4) CITY MONITOR (5) 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 office complex, Google offices, Universal Studios, US Navy headquarters, others

Potential demand from different sectors

Technology Hospitality Entertainment

Real Estate segment

(1) The above amounts in millions of ILS and the growth rate in relation to 2020

(2) Consolidated basis

במפעלי הייצור

Investor presentation I March 2023 I I

2022 Rental revenue breakdown

*Commercial real estate is in Herzliya Pituach, with an average occupancy rate of 98% as of the end of 2022

Potential for growth and value creation

Portfolio expansion

Potential value-add

Ashdod factory, Nitzanei Shalom

Value-add Ackerstein Towers, Ackerstein House

Financial data

Revenue and EBITDA

Consolidated basis, in thousands ILS

	2022	2021	2020
Revenue	782,253	640,491	662,771
EBITDA	117,858	100,713	93,977
Industry and Civil & Industrial Engineering segments
Revenue	661,338	538,285	571,783
EBITDA	93,449	79,872	81,139
Oversea Industry segment
Revenue	91,867	75,887	64,923
EBITDA	10,137	8,359	(1,037)
Real Estate segment
Revenue	28,829	26,319	26,065
EBITDA	14,272	12,482	13,875

The EBITDA presented above does not include other expenses and income and unallocated expenses (at the total level)

Consolidated balance sheet

As of December 31, 2022 and 2021, in million ILS

Total	661	534	Total

Non-current assets			Non-current liabilities
Right of use asset, net	42	31	Liabilities to banks
Investment properties	422	387	Lease liabilities
Fixed assets	801	701	Liabilities with respect to other benefits after employment termination
Other	8	3	Deferred taxes, net

Current assets:	2022	2021	Current liabilities	2022	2021
Cash and cash equivalents	178	173	Credit from banks	54	151
Short-term investments	65	-	Lease current liabilities	8	5
Customers	263	226	Trade payables	130	79
Receivables and others	42	24	Other current liabilities	264	76
Inventory	113	111		456	311

Non-current assets			Non-current liabilities
Right of use asset, net	42	31	Liabilities to banks	135	130
Investment properties	422	387	Lease liabilities	35	27
Fixed assets	801	701	Liabilities with respect to other benefits after employment termination	4	6
Other	8	3	Deferred taxes, net	220	208
Total	1,273	1,122	Total non-current liabilities	394	371

			Equity	1,084	974 -130
Total assets	1,934	1,656	Total liabilities and equity	1,934	1,656

50 55 60 Dividend (ILS M) Attributed to profits generated in the years below

Equity and Net Debt development (ILS M)

Integral part of the construction boom in Israel

Products and solutions along the entire value chain

Nationwide deployment of advanced production facilities

Maximizing the scope of work for every construction or infrastructure project

Expanding our offerings

Constant expansion of products and solutions

Entering prefabricated construction

Leverging the momentum in logistics centers

Financial strength to support future growth

Strong and stable cash flow

Low leverage

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

Thank you!