Ackerstein Group Ltd. — Investor Presentation 2025

Mar 11, 2025

INVESTOR PRESENTATION

March 2025

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 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, 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 forwardlooking 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

Operating Segments

Industry Segment

Manufacturing, marketing and sales of concrete products for landscape design and, infrastructure products, cladding, roofing tiles, metal infrastructure products, and metal formwork for concrete casting (starting 2025).

Overseas Industry Segment

Landscape design products in Western US

Engineering Segment

Wide range of tailored solutions for complex projects combining elements and prefabricated construction. Protective structures, jacking pipes, railway sleepers, and metal products for defense, security, infrastructure, and construction applications.

Real Estate Segment

Commercial, industrial and retail properties

2024 Revenue Breakdown

Addressing the Current Challenges

בצל המלחמה: Strengthening Defense and Homeland Security

ĎĐ0Ď: אתגרים בזירה Supporting social organizations, national institutions, security forces, and company employees serving in reserves

העסקית Solutions for Current Needs

• Supplying advanced protective solutions
• Conversion of production lines to serve the security system's needs
• Continuing investment in prefabricated production capabilities
• Providing prefabricated housing solutions for rebuilding communities in the Gaza envelope and northern Israel

Business Environment Challenges

• Construction and infrastructure sector crisis
• Severe labor shortages in construction causing project delays
• Rising construction costs and high-interest rate environment

5 I

ĎČĎđ I

2024 Results: Growth in Operating and Net Profit¹

Despite complex period challenges, the company shows double-digit average annual growth (CAGR) across all metrics, reflecting business resilience and increasing demand for protective products and prefabricated construction

1. The amounts presented in the slide are in millions of NIS. The growth referred to in the title is in operating and net profit compared to the results of 2023.

Investor presentation I March 2025 I 6 I

Ackerstein Prepares for the Day After 2024

"Tkuma" Project

Development, manufacturing and construction of residential buildings for Gaza envelope communities in record time of 6 months

Product Range Expansion

Development of new production lines

Strategic Acquisition

To establish market dominance in the steel and iron industry

Strategic Integration of Kalram Ltd. Acquisition

Substantial growth in order backlog driving significant revenue expansion and enhanced market position

The Day After.. Massive Investment in Infrastructure

Total cost 270 Strategic Infrastructure Projects in the Government's Multi-Year Plan¹ 508 billion NIS

Funded through Government Allocations, Private Capital, and Public-Private Partnerships

^~200 billion NIS

Budget for ~110 infrastructure projects

Transportation, sewage and water, environment, construction, and more ^~150

billion NIS

Cost of underground railway projects

^~50

billion NIS

Cost of railway tracks expansion Expected growth in government spending on infrastructure² (Billions of NIS and % of Total Spending)

2025 8 I

1. Source: Infrastructure for Growth 2025, Prime Minister's Office, 23.2.2025 and, Company analysis. Of the 270 projects, 30 have been completed. Link to source

2. State Budget 2025, Budget Department, link to data

Investor presentation I March 2025 I

The Day After.. Strategic Investment in Protective infrastructure

Protective infrastructure budgets

along the northern, eastern, and Gaza border areas, including:

7 billion NIS

Building and

the Defense Ministry, 2023-2028

1.2 billion NIS

560 million NIS

Infrastructure Budget According to the five-year plan of Accelerated Implementation of "Northern Shield" Project

Construction of 10,000 safe rooms for residents at a height of 1.5 km from the Lebanon border ² Dedicated Budget for Protection Projects For safe rooms in hospitals and

public facilities³

1."Tkuma" Performance Report 1.10.24 link to report 2.Publication of the Budget Department, 12.2024 link to publication 3.Source: Infrastructure for Growth 2025, Prime Minister's Office, 23.2.2025 update of the multi-year plan link and Company analysis I 2025 9 I

9 I Investor presentation I March 2025 I

Ackerstein Group

Strength at Every Scale: From Neighborhood Projects to National Infrastructure

Extensive professional knowledge 100 years of experience across diverse projects

Comprehensive Solutions Under One Roof Diverse products and solutions in high-demand sectors

Advanced production facilities deployed nationwide

2025 10 I

Industry Sector

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

Manufacturing, marketing and sales of concrete products for landscape design and, infrastructure products, cladding, roofing tiles, metal infrastructure products, and metal formwork for concrete casting (starting 2025).

Landscape design

Cladding and facades

Financial Results (millions of NIS)	2024	2023	2022
Revenue	266	366	317
Operating profit	18	63	28
EBITDA	49	93	56

Strategic focuses to achieve growth Industry Sector

Expansion of Product Range and Production Capabilities

New pipeline

Investment in infrastructure production system

Synergistic Transaction New Categories

Leveraging Kalram Ltd.'s Capabilities

January 2025: Acquisition of Av Lev Metal Industries Ltd

Specializing in the production of metal molds for industrialized elements made of concrete for concrete manufacturers and infrastructure and construction contractors

End-to-end production elements for construction

Investment in innovative production systems

2025 13 I

Engineering Segment

Profitability growth resulting from increased project volumes in prefabricated construction, project execution, protective systems, and railway sleepers

Engineering Segment

Customized Solutions for Diverse Projects

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

Infrastructure elements

Strategic focuses for continued growth Engineering Sector

Expansion of Product Range and Production Capabilities

Expansion of production lines to increase manufacturing capacity and availability in prefabricated construction

Strategic synergy as a competitive lever

Leveraging synergy between concrete and metal solutions to create a comprehensive and unique industry solution

Integrative Turnkey solutions

Proven expertise in civil and defense projects integrating the entire value chain:

From engineering design, through prefabricated element manufacturing, to execution, installation, and delivery of completed projects to clients

2025 16 I

Engineering Segment

Prefabricated Construction: The Key to Accelerating Construction

Prefabricated Structures –" Tkuma" Project

Speed

35%-40%

Shorter construction time

Green

60%-90%

Reduction of construction waste and raw material supply to the construction site Reduction of noise, pollution, and air contamination

Efficiency

Safety

60%-70%

Reduction of work accidents

50%-75%

Savings in manpower at the construction site Higher productivity - 3-4 times Precise, quality, and reliable construction

Photography by Amit Moshe

Transformer rooms Large residential unit Wall Fence Cladding & facades Stairs & Shaft Small residential unit

Investor presentation I March 2025 I 17 I

Tkuma Project in the "Gaza Envelope"

In just 6 months, 56 villas were constructed

Leveraging planning capabilities and prefabricated solutions

Investor presentation I March 2025 I 18 I

Vertical Integration in Advanced Metal and Steel Solutions

In the industry and engineering sectors through Kalram Ltd. and Av Lev Metal Industries Ltd.

Entering New Categories: Construction and Complex Steel Structures

Acquired KALRAM in 2022

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 Ackerstein customers has been a significant contributor to the growth of both revenues and project backlogs

Expanding Capabilities: Acquisition of Av Lev Metal Industries Ltd.

January 2025: Strategic acquisition of Av Lev Metal Industries Ltd.

Specializing in the production of metal formwork for concrete element casting such as: beams, bridge supports, columns,

capitals, cornices, etc., for concrete manufacturers and infrastructure and construction contractors

Strong synergy with engineering and industry segments

Enhancing capabilities for prefab construction and infrastructure development

Rising Demand for Metal Formwork

Due to protective infrastructure, construction and security needs in Israel

1.Source: Formwork And Scaffolding Market 2025-2029, Technavio, December 2024 link to publication 2025 I

Investor presentation I March 2025 I

21 I

Overseas Industry segment

Results impacted by macroeconomic environment and high interest rates

Anticipating market recovery in 2026

	2024	2023	2022
Revenue \$M	16	16	27
EBITDA \$M	(ď.đ)	(6.6)	3

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

1. Including assets classified as fixed assets of 566 million NIS and 490 million NIS in investment property.

2. Revenue from unrelated third parties.

3. Offices in Herzliya Pituach with an average occupancy rate of 88.7% in 2024. 23 I

Ackerstein House:

25,000 square meters of mixed-use space, including:

60 apartments of 50 square meters each

500 square meters of commercial space

Status:

The Herzliya Local Committee has decided to deposit the plan promoted by the company for the complex, subject to conditions detailed in the decision. The aforementioned zoning plan has not yet been approved

Ackerstein Towers¹

55,000 square meters

of mixed-use space, including:

Approx. 160 square residential units

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

Investor presentation I March 2025 I

Potential for growth and value creation

Financial Data Q4 2024 and YE 2024

B.S.R Complex Petah Tikva, Tzurnamal Turner Landscape Architecture 2025 27 I

Revenue & EBITDA

Consolidated basis, in thousands ILS

	2024	2023	2022	2021	Q4 2024	Q4 2023	Q4 2022	Q4 2021
Revenue	902,353	1,036,962	782,253	640,491	241,219	251,541	199,531	171,894
EBITDA	154,759	182,789	117,858	100,713	41,523	49,614	37,461	29,863
Net profit	123,497	93,615	75,704	60,337	36,379	32,254	42,699	30,061
Industry & Engineering segments
Revenue	812,404	948,175	ĒĒč,ďďĔ	538,285	218,763	231,434	170,346	148,799
EBITDA	151,944	čĕĎ,Ďďď	ĕĎ,ĔĐČ	79,872	42,176	52,324	31,235	27,318
Oversea Industry segment
Revenue	58,739	59,084	91,867	75,887	14,810	13,360	21,783	16,622
EBITDA	(12,909)	(24,501)	10,137	8,359	(4,598)	(5,912)	1,985	(627)
Real Estate segment
Revenue	31,210	29,703	29,048	26,319	7,646	6,747	7,402	6,473
EBITDA	15,724	15,057	14,881	12,482	3,945	3,202	4,241	3,172

Investor presentation I March 2025 I 28 I

Consolidated balance sheet

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

Inventory	120	118

Non-current assets			Non-current liabilities
Fixed assets	827	819	Liabilities with respect to other benefits after employment termination

Current assets:	2024	2023	Current liabilities	2024	2023
Cash and cash equivalents	21	134	Credit from banks	30	42
Short-term investments	59	-	Lease current liabilities	10	7
Customers	325	297	Trade payables	115	140
Receivables and others	46	39	Other current liabilities	202	178
Inventory	120	118
Total	571	588	Total	357	367

Non-current assets			Non-current liabilities
Right of use asset, net	42	39	Liabilities to banks	75	101
Investment properties	490	427	Lease liabilities	34	35
Fixed assets	827	819	Liabilities with respect to other benefits after employment termination	4	Đ
Other	15	15	Deferred taxes, net	238	229
Total	1,374	1,300	Total non-current liabilities	351	369

			Equity	1,237	1,152
Total assets	1,945	1,888	Total liabilities and equity	1,945	1,888

Equity and Net Debt development (ILS M)

Equity Financial Asset (Debt)

"The Day After" Solutions

Comprehensive products and solutions across the entire value chain

Nationwide deployment of advanced production facilities

Maximizing project scope for construction and infrastructure projects

Significant Market Opportunities for the Company's Offerings

Expanding product range with new production lines

Growing operations through Kalam Ltd. and Av Lev Metal Industries Ltd. acquisitions

Product innovation aligned with market needs

Financial Resilience to Support Future Growth

Strong and stable cash flow

Low leverage

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

Piazza Plaza Ashkelon

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Investor presentation I March 2025 I