Ackerstein Group Ltd.

Investor Presentation • Aug 27, 2024

INVESTOR PRESENTATION

August 2024

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 2023, the Company's periodic report for the first quarter and first half of 2024 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 and Provider of Concrete Solutions

for Infrastructure, Protective and Prefabricated Construction, and Landscape Design

(1) LTM- Last twelve months ended 30.6.2024 (2) Dividend paid on April 4, 2024

Operating across four synergistic segments, in thriving sectors

Industry Segment

Infrastructure and landscape design products

Overseas Industry Segment

Landscape design products in Western US

Engineering Segment

Unique solutions for complex projects with combined prefabricated buildings & elements

Real Estate Segment Commercial, industrial and retail properties

H1 2024 Revenue Breakdown

Lifetime Achievement Award Was Presented to Giora Ackerstein, Chairman of the Ackerstein Group

Significant Contribution to the Israeli Industry, Nation Building, and Development of the State of Israel

The award was granted in recognition of his vision as an industrialist who introduced the latest advancements and innovations in the concrete products industry to Israel, most notably interlocking stones, a product known to every Israeli. His contributions also include advanced products such as jacking pipes and prefabricated elements used for national construction, defense, IDF bases, infrastructure development, transportation needs, and water purification.

The award was presented in the presence of President Isaac Herzog and the President of the Manufacturers' Association of Israel, Dr. Ron Tomer.

ice 17/7/2024

5 I

The Swords of Iron War

Strengthening the Frontline and the Home Front

Support for Social Organizations and National Institutions

• Assistance to the Hostages and Missing Families Forum
• Donation to Zarit for an elderly shelter
• Establishment of a national memorial site for the fallen soldiers of the Givati Brigade

Support for Security Forces

• Sponsorship of two IDF units
• Procurement and donation of winter gear and clothing
• Funding meals for the sponsored units

Support for Company Employees Serving in the Reserves

• Financial grants
• Delivery of food baskets and gift packages to families

Strategic Response to Security Challenges

• Providing advanced security solutions
• Converting production lines for defense needs
• Developing and adapting innovative protection solutions for changing demands
• Integration into Tekuma project

H1 2024 Financial Results

Current challenges have impacted first half results, yet our operational resilience ensures we meet the rising demand for protective and prefabricated construction solutions

Amidst the War: Challenges in the Business Arena

Construction and Infrastructure sector Challenges

• Labor costs doubled
• Delays and disruptions in new projects
• Industry sector operating at ~30% capacity¹

Construction & Infrastructure Commodities Crisis

• Shortage of building materials and products
• Disruptions in the Turkish supply chain
• Input costs up by 15%-20% 2

Impact on Company Operations:

• Project and order delays
• Work halted in combat zones
• Development of innovative solutions for evolving needs

⁽¹⁾ The marker Ďč.ē.ĎČĎ4 (2) YNETĔ.ē.ĎČĎ4

Business Environment Opportunities

First Half 2024 Summary

Mamadon 5, Hila Model

In memory of Hila Kailin, a company employee who was murdered by Hamas terrorists at the Nova festival on October 7, 2023

Present Challenges and Future Needs

Protective Measures for Current Threats

Urgent need for reinforced protection of military, security, and civilian structures (existing and new)

The company leveraged its planning capabilities to deliver prefabricated housing solutions

Rapid Deployment of Housing Solutions

Urgent need for quick construction of residential buildings in the "Gaza Envelope" and northern Israel

Accelerating Prefabricated Construction

Reducing manpower needed onsite while significantly shortening construction timelines

The company is investing in new production lines for infrastructure

Massive Infrastructure Development

Essential to accommodate rapid population growth of about 1 million every 5 years and to address delays caused by the war

Investor presentation I August 2024 I 9 I

Ackerstein's force multipliers allow us to deliver comprehensive solutions to meet market needs

Extensive professional knowledge

nearly 100 years of experience across diverse projects

Widest variety of products & solutions under one roof

Advanced production facilities deployed nationwide

Financial strength enables investment in innovative products and new infrastructure production lines

Landscape design

Concrete buildings and walls

מוצרי בטון לתשתיות Concrete products for infrastructures

המגוון הרחב ביותר של מוצרים ופתרונות תחת קורת גג אחת בהלימה עם מגמות השוק The widest range of products and solutions under one roof, aligned with current challenges and future needs. Prefabricated construction: Protective elements

Segments Activity

Industry Segment

Engineering Segment

Overseas Industry Segment

Real Estate Segment

Industry Segment

The widest range of products for hundreds of public and private projects

Industry segment

In landscape design, delays in product deliveries to construction sites—either closed or partially operational due to labor shortages—resulted in a significant decline in sales, affecting gross and operating profits in the first half of 2024

millions ILS	Qč 2024	Qč 2023
Revenue	đĔ	ĕĒ
Operating Income	č	čĕ
EBITDA	Ĕ	Ďē

millions ILS	Q2 2024	Q2 2023
Revenue	đĒ	ĕč
Operating Income (Loss)	(č)	čē
EBITDA	ē	ĎĐ

millions ILS	H1 2024	H1 2024
Revenue	ččĐ	čĔē
Operating Income	-	ďĒ
EBITDA	čđ	đč

Investor presentation I August 2024 I 14 I

Engineering Segment

Customized solutions for diverse projects

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

Authorized supplier for the State of Israel

Infrastructure elements Rail concrete sleeper

Engineering segment

Profit growth driven by expanded project volume in prefabricated construction, execution of protective and railway sleeper projects, and the successful implementation of operational and procurement efficiencies

Strategic focus for continued profitable growth

Engineering Segment

Engineering Segment Industry Segment

Expanding operations in the

Continuing to invest in innovation Constant expansion of products and solutions

Engineering Segment Industry Segment

Integrating future construction and infrastructure projects

Maximizing the scope of work for each project

Engineering Segment

Prefabricated construction: the key to accelerating construction

Investor presentation I August 2024 I 18 I

Tkuma Projec in the "Gaza Envelope"

In just 6 months, 56 villas were constructed

Leveraging planning capabilities and prefabricated solutions

Within 6 months of receiving the work order in April and May 2024:

36 prefabricated villas will be delivered in September An additional 20 villas will be delivered in October

Entering new categories: Construction and Complex Steel Structures

Acquired KALRAM

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

リ -

Successful integration and backlog increase

The introduction of Kalram to the market and Ackershtein customers has been a significant contributor to the growth of both product and project backlogs since its acquisition in 2022

Overseas Industry segment

BRANDS AKER-STONE HAS WORKED WITH:

Landscape design products production pioneer

Operating in the US West Coast

through subsidiary Aker-stone

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

Olympic Opportunity

Anticipated demand surge for the 2028 Los Angeles Games.City preparations to fuel major infrastructure investments aligned with Ackerstone's products

Overseas Industry segment

The company is executing a turnaround plan to drive profitable growth

millions ILS	Qč 2024	Qč 2023
Revenue	13	16
EBITDA	(3)	(2)

millions ILS	Q2 2024	Q2 2023
Revenue	17	17
EBITDA	(1)	(5)

millions ILS	H1 2024	H1 2024
Revenue	30	33
EBITDA	(4)	(7)

Real Estate Segment

(3) Revenues from unrelated third party (4) The average occupancy rate of the offices in Herzliya Pituach was 91.1 % in 30.6.2024

Investor presentation I August 2024 I 23 I

Ackerstein House:

Introducing Israel's first tower built with prefabricated construction

23,000 square meters of mixed-use space, including:

50 apartments of 50 square meters each

500 square meters of commercial space

Status: The Herzliya Local Committee approved submitting the company's plan for the complex, pending specified conditions. The zoning plan is not yet approved.

Ackerstein Towers:

Second Phase¹

55,000 square meters of mixeduse space, including:

Approx. 85 square residential units

Status: The plan is being advanced in accordance with the guidelines of the employment area master plan.

1) The company's share in future rights is 47%, compared to 42% in current rights. The Metro Law, finalized in July 2024, reduces the Metro improvement tax to 20% (down from 32%) for building permit applications submitted by 2030, in addition to the standard 40% improvement levy. This reduced rate is lower than the estimate in Q1 2024 and is included in the valuation of Ackerstein Towers in Herzliya.

Potential for growth and value creation in real-estate

Value-add Ackerstein Towers

26 I

Investor presentation I August 2024 I

23

ILS Million 2023 NOI

Financial data H1 2024

Revenue & EBITDA

Consolidated basis, in thousands ILS

	H1 2024	H1 2023	ĎČĎď
Revenue	408,493	514,172	1,036,962
EBITDA	65,731	88,919	182,789
Net profit	29,678	40,426	93,615
Industry & Engineering segments
Revenue	363,524	466,796	948,175
EBITDA	62,168	88,740	192,233
Oversea Industry segment
Revenue	29,913	32,622	59,084
EBITDA	(4,370)	(7,137)	(24,501)
Real Estate segment
Revenue	15,111	14,754	29,703
EBITDA	7,933	7,316	15,057

Consolidated balance sheet

As of June 30, 2024, and December 31,2023 in million ILS

Inventory	120	118

Non-current assets			Non-current liabilities
Right of use asset, net	40	39	Liabilities to banks	87	101
Investment properties	428	427	Lease liabilities	35	35
Fixed assets	819	819	Liabilities with respect to other benefits after employment termination	4	4
Other	14	15	Deferred taxes, net	228	229
Total	1,301	1,300	Total non-current liabilities	354	369

:Current assets	24 .30.6	31.12.23	Current liabilities	30.6. 24	31.12.23
Cash and cash equivalents	32	134	Credit from banks	33	42
Short-term investments	58	-	Lease current liabilities	8	7
Customers	260	297	Trade payables	102	140
Receivables and others	43	39	Other current liabilities	183	178
Inventory	120	118
Total	513	588	Total	326	367

Liabilities with respect to other benefits after employment termination	4	4

Equity	1,134	1,152

Total assets	1,814	1,888	Total liabilities and equity	1,814	1,888

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

Equity and Net Debt development (ILS M)

Investor presentation I August 2024 I I August 2024 I 29 I

Solutions aligned with current and future market needs

Comprehensive products and solutions across the entire value chain

Nationwide deployment of advanced production facilities

Maximizing project scope for construction and infrastructure projects

Financial resilience to support future growth

Strong and stable cash flow

Low leverage

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

Architectural concrete tiles Lido Beach, Ashdod

Investor presentation I August 2024 I 30 I

Photography by Amir Terkel