Albaad Massuot Yitzhak Ltd. — Investor Presentation 2023

Aug 17, 2023

Aug

2023

Financial Results Overview Q2.2023

1

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.

The company is the largest manufacturer in Europe and one of the leaders in the world as production of wet wipes for the "private label" market

General Overview

The company has 7 production sites in the world in a wide layout that allows proximity to the customer

The company is a vertical manufacturer of wet wipes, and produces most of the non-woven fabric for itself, which accounts for about 60% of the product's cost

In 2017, the company operated a new green production site in Dimona. The site produces flushable and dispersible paper in accordance with the advanced European regulation

The company continues to invest in innovation in its variety of products in accordance with the needs of advanced customers

The company is the largest manufacturer for USA and one of the leaders in the world as production of tampons for the "private label" market

2023 Operating Plan

Focusing on Wipes core activity Europe

Focusing on Tampons PL players in USA

Dimona Green hybrid product Line

Executing our finance strength plan

Highlights Q2.2023 results VS. Last year(000 NIS)

			Q2 2023	Q2 2022	Var	Var %
		Sales	447 368 ,	377 573 ,	69 795 ,	18 5%
+18% Sales Sales in original currency +8%		EBIT	23 583 ,	8 482 ,	15 101 ,	178 0%
		EBIT (Before Others)	23 583 ,	8 491 ,	15 092 ,	177 7%
+178%	Operating Profit	EBITDA (Continued operation)	45 689 ,	29 670 ,	16 019 ,	54 0%
		EBITDA	44 507 ,	9 007 ,	35 500 ,	394 1%
+54%	EBITDA +394% inc. discontinued operation	Net Profit (Continued operation)	9 993 ,	9 209 ,	784	8 5%
+20M	Net Profit	Profit Net	6 622 ,	(13 816) ,	20 438 ,
	From negative to positive	CF Operating activities -	56 254 ,	(3 025) ,	59 279 ,

* Sales and EBITDA trends 2021-2023

Quarterly basis (000 NIS)

* Sales and EBIT by Division

Q2.2023 VS. Last year (000 NIS)

	Sales				* EBIT
	Q2 2023	Q2 2022	Var %	Var % (Org.)	Q2 2023	Q2 2022
Albaad Europe % from sales	336,531	277,727	21.2%	9.0%	12,274 3.6%	10,738 3.9%
Albaad IL % from sales	59,040	57,661	2.4%	(1.3%)	997 1.7%	2,475 4.3%
Albaad Fabric IL % from sales	83,268	95,609	(12.9%)	(21.7%)	7,056 8.5%	1,379 1.4%
Albaad Fem IL % from sales	64,699	51,785	24.9%	15.0%	10,655 16.5%	(1,975) (3.8%)
Intercompany	(96,170)	(105,209)			(637)	864
HeadQuarter & Others					(6,762)	(4,990)
Total Company % from sales	447,368	377,573	18.5%	7.8%	23,583 5.3%	8,491 2.2%
Other Income/Expenses						(9)
Total Company % from sales	447,368	377,573	18.5%	7.8%	23,583 5.3%	8,482 2.2%

Highlights H1.2023 results VS. Last year(000 NIS)

Last year (000 Nis)
---------------------	--

	H1 2023	H1 2022	Var	Var %
Sales	860	732	128	17
	661	281	380	5%
	,	,	,
EBIT	40	23	16	71
	508	648	860	3%
	,	,	,
EBIT	41	23	17	74
(Before	220	648	572	3%
Others)	,	,	,
EBITDA	84	65	18	27
(Continued	037	785	252	7%
operation)	,	,	,
EBITDA	77	37	40	110
	947	091	856	2%
	,	,	,
Profit Net (Continued operation)	16 943 ,	16 644 ,	299	1 8%
Profit Net	8 041 ,	(16 392) ,	24 433 ,
CF Operating activities -	90 397 ,	(30 067) ,	120 464 ,

+17% Sales Sales in original currency +9%

+74% Operating Profit Before Others

+28% EBITDA +110% inc. discontinued operation

+24M Net Profit From negative to positive

三二 Albaad

* Sales and EBIT by Division

H1.2023 VS. Last year (000 NIS)

	Sales				* EBIT
	H1 2023	H1 2022	Var %	Var (Org ) %	H1 2023	H1 2022
Albaad Europe from % sales	638 660 ,	539 730 ,	18 3%	9 0%	20 152 , 3 2%	26 825 , 5 0%
Albaad IL from % sales	115 412 ,	116 710 ,	(1 1%)	(4 0%)	(411) (0 4%)	7 088 , 6 1%
Fabric Albaad IL % from sales	182 610 ,	182 903 ,	(0 2%)	(7 9%)	20 368 , 11 2%	4 700 , 2 6%
Albaad Fem IL % from sales	132 083 ,	561 97 ,	35 4%	25 0%	20 291 , 15 4%	(6 047) , (6 2%)
Intercompany	(208 104) ,	(204 623) ,			(6 617) ,	1 106 ,
HeadQuarter & Others					(12 563) ,	(10 024) ,
Company Total % from sales	860 661 ,	732 281 ,	5% 17	7% 8	41 220 , 4 8%	23 648 , 3 2%
Other Income/Expenses					(712)
Company Total % from sales	860 661 ,	732 281 ,	5% 17	7% 8	40 508 , 4 7%	23 648 , 3 2%

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

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
• The line assembly will be completed at the end of 2023, production is expected during H1 2024
• Approximately 100 MNIS invested up to June 2023 from total budget of about 200 MNIS

ESG

For the 4th time in a row, Albaad has been awarded the Maala ESG "Platinum"

Albaad has been participating in Maala ESG rating since 2011 As a result of our significant efforts and improvements in Environmental and Social areas complying with the GRI standard

The company awarded the prestigious "Platinum" rating three years ago and has managed to maintain this ranking since then

Continuous improvement

2023-Forming an environmental strategy aligned to Albaad's business plan using the shared-value principle ESG and business goals

Finance strength plan – Update

Dec. 2022 Successful Rights issue of 48.3 MNIS to Strengthen Albaad BS

Mar. 2023 Closing USA wipes activity

Receiving \$6M mainly for the inventory & Stop losses in USA

Exceed Bank waivers expectation for Q1 & Q2.2023

Net Liabilities to EBITDA Ratio: Q1 4.56 (Waiver <6)

Q2 3.95 (Waiver <7)

* Equity Ratio : Q1 21.3% (Waiver >20%)

Q2 23.3% (Waiver >20%)

Positive performance signs for EBITDA Growth & Operating Cash Flow

Inventory reduction of 44 MNIS since Dec.2022

** Cumulated Free Cash Flow of 42 MNIS (16M in Q1 & 26M in Q2) including Dimona line 2 investments

Balance Sheet

AS OF 30.06.2023 VS. 31.12.2022 (000K NIS)

			30 06 2023	from % total	31 12 2022	from % total
		Cash and cash equivalents	31 423 ,	2%	27 186 ,	2%
31M	Cash on hand	Trade Receivables	250 077 ,	16%	254 547 ,	16%
		Inventory	349 149 ,	22%	393 313 ,	25%
		Other Current Assets	38 876 ,	2%	37 580 ,	2%
44M	Reduction of inventory	Current Total Assets	525 669 ,	42%	712 626 ,	45%
		Current Non Assets	919 416 ,	58%	883 964 ,	55%
		Total Assets	1 588 941 , ,	100%	1 596 590 , ,	100%
379M	Equity	Credit banking & institutions	* 569 437 ,	36%	538 805 ,	34%
		Trade Payables	217 042 ,	14%	252 518 ,	16%
24%	Equity from total balance sheet	Current Total Liabilities	887 113 ,	56%	910 734 ,	57%
		Total Long Term Liabilities -	322 986 ,	20%	331 194 ,	21%
		Equity	378 842 ,	24%	354 662 ,	22%
		Total liabilities	1 588 941 , ,	100%	1 596 590 , ,	100%

Finance strength plan – Going forward

Focus on Company performance :

• EBITDA Growth
  • Operating Cash Flow
  • Working Capital (including factoring)

Sale & Lease Back of Dimona facility

Strive to meet Banks Initial Covenants

THANK YOU

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