Albaad Massuot Yitzhak Ltd. — Investor Presentation 2023

Nov 20, 2023

Nov

2023

Financial Results Overview Q3.2023

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FORWARD LOOKING STATEMENT

Legal disclaimer Important notice

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer for sale or subscription of, or solicitation of, any offer to buy or subscribe for any shares of Albaad Massuot Yitzhak LTD. (the "Company") or any of its affiliated entities.

This presentation contains partial information from the public reports of the Company under the Israeli Securities Law 5728-1968 (the "Securities Law"), which can be accessed on the Israeli Securities Authority's website, www.magna.isa.gov.il. A review of this presentation is not a substitute for a review of the detailed reports of the Company under the Securities Law and is not meant to replace or qualify them; rather, the presentation is prepared merely for the convenience of the reader, with the understanding that the detailed reports are being reviewed simultaneously.

Everything stated in this Presentation with respect to an analysis of the Company's business is merely a summary and any forwardlooking statements involve risks and uncertainties. These statements include descriptions regarding the intent, belief or current expectations of the Company. Such forward-looking statements are not guarantees of future results, performance or achievements and are based on current expectations, estimations, and assumptions, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this presentation due to a variety of factors, many of which are beyond the Company's control, including, without limitation, certain risk factors contained in the Company's reports. The Company disclaims any obligation or commitment to update these forward-looking statements to reflect new information, future events or developments or changes in expectations, estimates, projections and assumptions or otherwise.

2023 OPERATING PLAN

EXECUTING OUR FINANCE STRENGTH PLAN

• Achieving the initial banks covenants ahead of schedule
• We reclassified 126 M NIS bank loans from short-term to long-term

FOCUSING ON PROFITABILITY IN OUR TARGET MARKETS

• Growth in Wipes core activity in Europe & Tampons in the US market
• * ** EBIT Increase of 241%, EBITDA Increase of 59% for Sep YTD

Q3.2023 COMPANY MAIN HIGHLIGHTS CONCLUDING THIRD QUARTER WITH

• SALES INCREASE OF 21% TO 431 M NIS

** * • GROSS PROFIT MARGIN REACHED 20% • EBIT INCREASE OF 31 M NIS TO 28 M NIS • EBITDA INCREASE OF 32 M NIS TO 50 M NIS

** • NET PROFIT INCREASE OF 34 M NIS TO 12 M NIS

*** • OPERATING CF 89 M NIS (FCF OF 53 M NIS)

• NET DEBT DECREASE OF 42 M NIS TO 560 M NIS

* EBIT before others ** EBITDA & Net profit from continued operation *** FCF = Operating CF + Leasing liability repayment– Interest + CAPEX

* SALES & EBITDA TRENDS 2021-2023

Quarterly basis (000 NIS)

Sales EBITDA

DIVERSE PRODUCT RANGE

Home Care

Wipes Disinfecting /All Purpose Cleaning / Windows / Floors / Furnitures / Automotive

Hygiene

Wipes Moist Toilet Paper Consumer Healthcare Adult Care

Baby Care

Wipes Based formulas: Aqua / Gel / Rich Lotion / Diaper Rash Cream / Bathing Wipes

Cosmetics

Wipes Makeup Remover / Hydrating / Exfoliating (abrasive) / Anti-aging

Fem. Care Tampons, Wipes Tampons: Tampon with a plastic applicator Tampon without applicator Tampon with a paper applicator

Intimate Wipes

ALBAAD's ADDED VALUE

Global deployment

• ✓ Avoid Supply chain disruption
• ✓ Back up plan in case of disruption in one of our facilities
• ✓ Sufficient capacity in case market needs fast growing
• ✓ Nonwoven Production Albaad produces majority of its own nonwoven consumption

Marketing

• ✓ Identify and adjust the needs of each customer
• ✓ Highly qualified team well experienced with A brands needs
• ✓ Well informed on innovative raw materials (fabrics, laminate, Chemicals), products and customers trends worldwide

R&D

• ✓ Well trained and highly educated R&D corporate's team – led by PhD.
• ✓ Focuses on innovation
• ✓ Expertise in all production chain – Fibers, Fabrics and End-Products

HIGHLIGHTS

Q3.2023 results VS. Last year(000 NIS)

+21% Sales Sales in original currency +4%

+31M Operating Profit Before Others

+172% EBITDA +32 M continued operation +78 M inc. discontinued operation

+79M

Net Profit From negative to positive

	Q3 2023	Q3 2022	Var	Var %
Sales	430,909	356,880	74,029	20.7%
EBIT	27,658	(10,977)	38,635
EBIT (Before Others)	27,662	(3,446)	31,108
EBITDA (Continued operation)	50,054	18,401	31,653	172.0%
EBITDA	51,186	(26,707)	77,893
Net Profit (Continued operation)	12,060	(22,360)	34,420
Net Profit	10,463	(69,013)	79,476
CF - Operating activities	89,075	32,900	56,175	170.7%

* SALES & EBIT BY DIVISION

Q3.2023 VS. Last year(000 NIS)

		Sales	* EBIT
	Q3 2023	Q3 2022	Var %	Var % (Org.)	Q3 2023	Q3 2022
Albaad Europe % from sales	330,748	264,503	25.0%	5.3%	19,766 6.0%	4,233 1.6%
Albaad IL % from sales	61,751	55,425	11.4%	3.9%	1,215 2.0%	865 1.6%
Albaad Fabric IL % from sales	88,499	89,596	(1.2%)	(16.9%)	3,818 4.3%	(3,565) (4.0%)
Albaad Fem IL % from sales	61,794	51,960	18.9%	6.7%	9,712 15.7%	(1,361) (2.6%)
Intercompany	(111,883)	(104,604)			(1,420)	1,341
HeadQuarter & Others					(5,429)	(4,959)
Total Company % from sales	430,909	356,880	20.7%	4.1%	27,662 6.4%	(3,446) (1.0%)
Other Income/Expenses					(4)	(7,531)
Total Company % from sales	430,909	356,880	20.7%	4.1%	27,658 6.4%	(10,977) (3.1%)

HIGHLIGHTS

Sep.2023 YTD results VS. Last year(000 NIS)

	Sales
+19%	Sales in original currency +7%

+241% Operating Profit Before Others

+59% EBITDA +50 M continued operation +119 M inc. discontinued operation

+104M

Net Profit From negative to positive

	YTD Sep 23	YTD Sep 22	Var	Var %
Sales	1,291,570	1,089,161	202,409	18.6%
EBIT	68,166	12,671	55,495	438.0%
EBIT (Before Others)	68,882	20,202	48,680	241.0%
EBITDA (Continued operation)	134,091	84,191	49,900	59.3%
EBITDA	129,133	10,384	118,749
Net Profit (Continued operation)	29,003	(5,716)	34,719
Net Profit	18,504	(85,405)	103,909
CF - Operating activities	179,472	2,833	176,639

* SALES & EBIT BY DIVISION

Sep.2023 YTD VS. Last year(000 NIS)

		Sales				* EBIT
	YTD Sep 23	YTD Sep 22	Var %	Var % (Org.)	YTD Sep 23	YTD Sep 22
Albaad Europe	969,408	804,233	20.5%	7.6%	39,918	31,063
% from sales					4.1%	3.9%
Albaad IL % from sales	177,163	172,135	2.9%	(1.6%)	804 0.5%	7,956 4.6%
Albaad Fabric IL % from sales	271,109	272,499	(0.5%)	(10.9%)	24,186 8.9%	1,135 0.4%
Albaad Fem IL % from sales	193,877	149,521	29.7%	18.0%	30,003 15.5%	(7,416) (5.0%)
Intercompany	(319,987)	(309,227)			(8,037)	2,447
HeadQuarter & Others					(17,992)	(14,983)
Total Company % from sales	1,291,570	1,089,161	18.6%	7.3%	68,882 5.3%	20,202 1.9%
Other Income/Expenses					(716)	(7,531)
Total Company % from sales	1,291,570	1,089,161	18.6%	7.3%	68,166 5.3%	12,671 1.2%

Innovation & Future Growth Green product line in Dimona - the next generation

• Green hybrid production line that enables production in both paper technology and green non-woven technology
• The Hydrofine®Products from the new hybrid line will serve both flushable MTT wipes as well as traditional baby, cosmetic and cleaning wipes
• All Hydrofine®Products are made from 100% natural, plant based components
• Production is expected during H2 2024
• Approximately 120 MNIS invested up to September 2023 from total budget of about 200 MNIS

BALANCE SHEET

AS OF 30.09.2023 VS. 31.12.2022 (000 NIS)

34M Cash on hand

60M Reduction of inventory +84 M excluding currency impact

392M Equity

24% Equity from total balance sheet

	30.09.2023	% from total	31.12.2022	% from total
Cash and cash equivalents	34,279	2%	27,186	2%
Trade Receivables	234,940	14%	254,547	16%
Inventory	333,551	20%	393,313	25%
Other Current Assets	38,682	2%	37,580	2%
Total Current Assets	641,452	39%	712,626	45%
Non Current Assets	995,190	61%	883,964	55%
Total Assets	1,636,642	100%	1,596,590	100%
Credit banking & institutions	* 409,515	25%	538,805	34%
Trade Payables	232,089	14%	252,518	16%
Total Current Liabilities	749,425	46%	910,734	57%
Total Long-Term Liabilities	494,721	30%	331,194	21%
Equity	392,496	24%	354,662	22%
Total liabilities	1,636,642	100%	1,596,590	100%

SUMMARY & FUTURE GROWTH

Meeting Banks Initial Covenants in Q3.2023

* Net Liabilities to EBITDA Ratio 2.83 / Equity Ratio 24.5%

Maintaining positive performance for EBITDA Growth & Operating Cash Flow

** Inventory reduction of 60 MNIS since Dec.2022 Cumulated Operating Cash Flow of 179 MNIS Cumulated Free Cash Flow of 95 MNIS including Dimona line 2 investments

Creating Future Growth Engines

• Focusing on new profitable customers & Innovation products - expanding Europe sales teams
• Establishing a quality private brand pave our way into price or innovation driven new markets
• Innovation as state of mind in products, production & processes

THANK YOU

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