Ackerstein Group Ltd. — Investor Presentation 2024

Mar 12, 2024

INVESTOR PRESENTATION

March 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, 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 products & solutions for infrastructure, safeguarding, construction, and landscape design

100 Years of Excellence1	17 Production Facilities	573 Employees	1.04 ILS Billion Revenue
183 ILS Million EBITDA	50 ILS Million Declared Dividend2	427 ILS Million Investment properties	1.15 ILS Billion Equity

(1) Nearly 100 years (2) Dividend declared on March 11, 2024

Operating across four synergistic segments, in thriving sectors

Industry Segment

Infrastructure and landscape design products

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

Revenue Breakdown

Robust growth across all financial metrics¹

The ongoing demand for the company's products heightened due to the war

Market Opportunity

Trends and shifts in the Israeli market

New defense perception since October 7th

Rebuilding protective homes in the southern and northern regions

Protective military, and civilian buildings

Extensive infrastructure development

Expediting the shift towards prefabricated construction solutions

By 2050, Israel's population doubling necessitates developing and improving infrastructure, including water, sewage, and transportation, to serve an estimated 18 million people Growing demand to minimize on-site workforce and drastically shorten construction timelines

Israel is tansitioning from planning to execution

המגוון הרחב ביותר של מוצרים ופתרונות תחת קורת גג אחת A diverse range of products and solutions under one roof, aligned with market trends

אריחים לעיצוב נוף

הדפסת מוצרים תחימת שבילי אופניים

תלת מימד

מוצרי בטון לתשתיות Concrete products for infrastructures

Ackershwin Group's power multipliers enable seamless integration into any construction or infrastructure project in Israel

Extensive professional knowledge

nearly 100 years of experience across diverse projects

Widest variety of products & solutions under one roof

Advanced production facilities deployed nationwide with extensive delivery capacity

Financial strength enables investment in innovative products and processes

Segments Activity

Industry segment

Sustained growth in revenue and profit, attributed to investment initiatives in 2022 and 2023

(1) Amounts in millions of ILS, percentages represent the growth from 2021 to 2023

Investor presentation I March 2024 I 11 I

Industry Segment

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

Stones to define bike lanes

Engineering segment

Revenue growth and profitability boost, driven by increase in project size and scope of work

(1) Amounts in millions of ILS, percentages represent the growth from 2021 to 2023

Investor presentation I March 2024 I 13 I

Engineering Segment

Customized solutions for diverse projects

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

Authorized supplier for the State of Israel

Authorized supplier for Israel Railways

Infrastructure elements Rail concrete sleeper

Strategic focus for continued profitable growth

Expanding operations in the protective structures and prefabricated construction Meeting the growing demand

Engineering Segment Industry Segment

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 March 2024 I 16 I

Engineering Segment

Proactively prepared for increased demand in prefabricated construction

Expanding production capacity

Throughout 2023, production capabilities were expanded, alongside the development of versatile manufacturing capabilities in various technologies

Enhancing planning expertise

in collaboration with PCE¹ , a UK-based company with 55 years of experience, specializing in innovative planning for hybrid industrial construction to achieve optimization, efficiency, and industry-leading quality.

17 I

Leveraging design and execution capabilities in response to increasing demands

Prefabricated houses – Tkuma Project

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

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

2023: Results impacted by macroeconomic environment and high interest rates

Implemented management-level personnel changes and established a new marketing plan

Anticipating market recovery in H2 2024

	2023	2022	2021
Revenue \$M	16	27	23
EBITDA \$M	(6.6)	3	2.6

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

Overseas Industry Segment

Demand for hardscape products is expected to increase to \$3.9 billion in 2025

Continued growth in the popularity of outdoor living spaces, such as patios and outdoor kitchens

Healthy economic outlook, which will support investment by both residential and commercial

Increasing installation of permeable pavers in all markets, as these product types help prevent issues with water runoff and flooding

Hardscape products that offer easier construction, which can limit labor requirements

21 I

2023 Real estate value breakdown

Ackerstein House: Value-added features

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

50 apartments of 50 square meters each

500 square meters of commercial space

Status: Approval has been received for granting validity under the terms of the comprehensive plan for Herzliya, on the basis of which a Building-City plan will be submitted for the property

Ackerstein Towers: Second Phase

55,000 square meters of mixed-use space, including:

41,000 square meters commercial 10,000square meters residential 4,000square meters retail

Status: Approval has been received for granting validity under the terms of the comprehensive plan for Herzliya, on the basis of which a Building-City plan will be submitted for the property

Potential for growth and value creation

Financial data Q4 2023 and YE 2023

Revenue & EBITDA

Consolidated basis, in thousands ILS

	ĎČĎď	ĎČĎĎ	ĎČĎč	Q4 2023	Q4 2022	Q4 2021
Revenue	1,036,962	782,253	640,491	251,541	199,531	171,894
EBITDA	182,789	117,858	100,713	49,614	37,461	29,863
Net profit	93,615	75,704	60,337	32,254	42,699	30,061
Industry & Engineering segments
Revenue	948,175	ĒĒč,ďďĔ	538,285	231,434	170,346	148,799
EBITDA	čĕĎ,Ďďď	ĕĎ,ĔĐČ	79,872	52,324	31,235	27,318
Oversea Industry segment
Revenue	59,084	91,867	75,887	13,360	21,783	16,622
EBITDA	(24,501)	10,137	8,359	(5,912)	1,985	(627)
Real Estate segment
Revenue	29,703	29,048	26,319	6,747	7,402	6,473
EBITDA	15,057	14,881	12,482	3,202	4,241	3,172

The EBITDA presented above does not include other expenses and income (at the total level) I 2024 27 I

Consolidated balance sheet

As of December 31, 2022, and 2023 in million ILS

Inventory	118	113

Non-current assets			Non-current liabilities
Right of use asset, net	39	42	Liabilities to banks
Investment properties	427	422	Lease liabilities
Fixed assets	817	801	Liabilities with respect to other benefits after employment termination
Other	15	8	Deferred taxes, net
Total	1,300	1,273	Total non-current liabilities

Current assets:	2023	2022	Current liabilities	2023	2022
Cash and cash equivalents	134	178	Credit from banks	42	54
Short-term investments	-	65	Lease current liabilities	7	8
Customers	297	263	Trade payables	140	130
Receivables and others	39	42	Other current liabilities	178	264
Inventory	118	113
Total	588	661	Total	367	456

Non-current assets			Non-current liabilities
Right of use asset, net	39	42	Liabilities to banks	101	135
Investment properties	427	422	Lease liabilities	35	35
Fixed assets	817	801	Liabilities with respect to other benefits after employment termination	4	4
Other	15	8	Deferred taxes, net	229	220
Total	1,300	1,273	Total non-current liabilities	369	394

			Equity	1,152	1,084
Total assets	1,888	1,934	Total liabilities and equity	1,888	1,934

Equity and Net Debt development (ILS M)

2022 2023

(1) Dec. 31

Comprehensive products and solutions across the entire value chain

Nationwide deployment of advanced production facilities

Maximizing project scope for construction and infrastructure projects

Increased demand for the company's offerings

increasing demand in the defense and infrastructure sectors

Constant expansion of products and solutions

Expanding operations in prefabricated construction

Financial resilience to support future growth

Strong and stable cash flow

Low leverage

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

* Net profit without revaluation of real estate investment