Albaad Massuot Yitzhak Ltd. — Investor Presentation 2024

Nov 14, 2024

FINANCIAL RESULTS OVERVIEW Q3.2024

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 forward-looking 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.

COMPANY HIGHLIGHTS Q3 2024 SALES 451M NIS +4.7% vs. LY EBIT 33M NIS +20% vs. LY EBITDA 57M NIS +13.7% vs. LY NET PROFIT 14M NIS +17.4% vs. LY

• GROSS PROFIT MARGIN 20.9% +0.5% vs. LY
• (1)
• (2)
• (2)
• OPERATING CF 47.7M NIS, Free Cash Flow 41.2M NIS (3)
• REFINANCED 107M NIS, from ST loans to LT loans
• NET DEBT DECREASE TO 465M NIS

(1) EBIT before others (2) EBITDA & NET PROFIT from continued operation

SALES & EBITDA TRENDS 2022-2024 *

QUARTERLY BASIS (K NIS)

NET DEBT TO EBITDA TRENDS 2022-2024 *

QUARTERLY BASIS (K NIS)

Net Debt EBITDA (LTM) Net Debt / EBITDA

HIGHLIGHTS

Q3.2024 Results VS. Last year (K NIS)

+5%	Sales Sales in original currency 4.4%
+20%	Operating Profit
	+20% including others
	EBITDA
+14%	+8.5% inc. discontinued operation
+17%	Net Profit +23% inc. discontinued operation

		Q3 2024	Q3 2023	Var	Var %
Sales in original currency 4.4%	Sales	451,232	430,909	20,323	4.7%
				5,541	20.0%
	EBIT	33,199	27,658
+20% including others	EBIT (Before Others)	33,199	27,662	5,537	20.0%
	EBITDA (Continued operation)	56,901	50,054	6,847	13.7%
+8.5% inc. discontinued operation	EBITDA	55,557	51,186	4,371	8.5%
	Net Profit (Continued operation)	14,156	12,060	2,096	17.4%

* SALES & EBIT BY DIVISION *

Q3.2024 Results VS. Last year (K NIS)

* SALES & EBIT BY DIVISION
		Sales				* EBIT
	Q3 2024	Q3 2023	Var %	Var % (Org.)	Q3 2024	Q3 2023
Albaad Europe % from sales	353,352	330,748	6.8%	6.6%	26,949 7.6%	19,766 6.0%	36%
Albaad IL % from sales	65,773	61,751	6.5%	6.5%	2,738 4.2%	1,215 2.0%	125%
Albaad Fabric IL % from sales	78,482	88,499	(11.3%)	(11.4%)	6,205 7.9%	3,818 4.3%	63%
Albaad Fem IL % from sales	51,914	61,794	(16.0%)	(15.4%)	3,344 6.4%	9,712 15.7%	-66%
Intercompany	(98,289)	(111,883)			58	(1,420)
HeadQuarter & Others					(6,095)	(5,429)
Total Company % from sales	451,232	430,909	4.7%	4.4%	33,199 7.4%	27,662 6.4%	20%
Other Income/Expenses						(4)
Total Company % from sales	451,232	430,909	4.7%	4.4%	33,199 7.4%	27,658 6.4%

HIGHLIGHTS Sep.YTD 2024 Results VS. Last year (K NIS)

+1%	Sales Sales in original currency -0.8%
+35%	Operating Profit
	+37% including others
	EBITDA
+22%	+26% inc. discontinued operation
+33%	Net Profit +130% inc. discontinued operation

		SepYTD 2024	SepYTD 2023	Var	Var %
Sales in original currency -0.8%	Sales	1,307,471	1,291,570	15,901	1.2%
		93,350	68,166	25,184	36.9%
	EBIT
+37% including others	EBIT (Before Others)	92,744	68,882	23,862	34.6%
	EBITDA (Continued operation)	162,970	134,091	28,879	21.5%
+26% inc. discontinued operation	EBITDA	162,597	129,133	33,464	25.9%
	Net Profit (Continued operation)	38,568	29,003	9,565	33.0%

* SALES & EBIT BY DIVISION * Sep.YTD 2024 Results VS. Last year (K NIS)

		Sales				* EBIT
	SepYTD 2024	SepYTD 2023	Var %	Var % (Org.)	SepYTD 2024	SepYTD 2023
Albaad Europe % from sales	1,027,959	969,408	6.0%	4.1%	80,724 7.9%	39,918 4.1%	102%
Albaad IL % from sales	176,818	177,163	(0.2%)	(0.8%)	8,939 5.1%	804 0.5%	1012%
Albaad Fabric IL % from sales	238,286	271,109	(12.1%)	(13.9%)	12,841 5.4%	24,186 8.9%	-47%
Albaad Fem IL % from sales	153,002	193,877	(21.1%)	(22.5%)	7,217 4.7%	30,003 15.5%	-76%
Intercompany	(288,594)	(319,987)			104	(8,037)
HeadQuarter & Others					(17,081)	(17,992)
Total Company % from sales	1,307,471	1,291,570	1.2%	(0.8%)	92,744 7.1%	68,882 5.3%	35%
Other Income/Expenses					606	(716)
Total Company	1,307,471	1,291,570	1.2%	(0.8%)	93,350 7.1%	68,166 5.3%

BALANCE SHEET

	BALANCE SHEET
	AS OF 30.09.2024 VS. 31.12.2023 (K NIS)
			30.09.2024	% from total	31.12.2023	% from total
28M	Cash on hand	Cash and cash equivalents	27,660	2%	19,133	1%
		Trade Receivables	237,439	15%	213,956	14%
		Inventory	318,504	20%	328,969	21%
10M	Reduction of inventory	Other Current Assets	32,266	2%	32,184	2%
		Total Current Assets	615,869	39%	594,242	38%
		Non Current Assets Total Assets	958,536 1,574,405	61% 100%	988,361 1,582,603	62% 100%
456M	Equity	Credit from banking & institutions	328,299	21%	392,243	25%
		Trade Payables	226,415	14%	222,718	14%
		Other Current Liabilities	154,013	10%	98,222	6%
29%	Equity from total balance sheet	Total Current Liabilities	708,727	45%	713,183	45%
		Long-Term Loans from banks	164,263	10%	163,422	10%
		Other Long-Term Liabilities	244,981	16%	302,756	19%
		Total Long-Term Liabilities	409,244	26%	466,178	29%
		Equity	456,434	29%	403,242	25%
		Total liabilities	1,574,405	100%	1,582,603	100%

SUMMARY

Improvement in our result

• Operating Cash Flow of 131M NIS
• (1)
• (2)

Net Liabilities to EBITDA Ratio 1.4 (Covenant <3.6)

Tangible Equity Ratio 30.2% (Covenant >21%)

(2) Banks covenants are excluding intangible assets

FURTHER FINANCE STRENGTHENING

Optimizing our debt structure

Completed refinancing program: receipt 107M NIS in long-term loans during Q3 2024

Sale & Lease Back

Closing Dimona facility transaction receiving 40M NIS in October 2024

ESG FOCUS

• 5 th consecutive year of high-tier recognition
• Reflects our commitment to sustainable business practices and demonstrates consistent excellence and improvement in:
  • Environmental stewardship
  • Social responsibility
  • Corporate governance

FUTURE GROWTH

• Dimona Green hybrid production line as milestone for growth, aligns with our sustainability strategy
  • Hydrofine® Products are made from 100% natural, plant based components
  • Approximately 164M NIS invested up to September 2024 from total budget of about 200M NIS
  • Production is expected next year
• Focusing on new customers & Innovation products
• Expand Poland warehouse and machinery upgrades to improve logistics costs & support more capacity

THANK YOU