Albaad Massuot Yitzhak Ltd. — Investor Presentation 2024

Aug 15, 2024

August 2024

Q2.2024

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.

Q2.2024 COMPANY MAIN HIGHLIGHTS SALES 440M NIS -1.6% vs. LY EBIT 34M NIS +43.3% vs. LY EBITDA 58M NIS +26.5% vs. LY NET PROFIT 15M NIS +49.1% vs. LY

• GROSS PROFIT MARGIN 21.1% +1.6% vs. LY
• (1)
• (2)
• (2)
• OPERATING CF 52.1M NIS, Free Cash Flow 46.9M NIS (3)
• NET DEBT DECREASE TO 493M 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)

HIGHLIGHTS

Q2.2024 Results VS. Last year (K NIS)

-1.6%	Sales Sales in original currency -3.3%
+43%	Operating Profit
	+46% including others
	EBITDA
+26%	+31% inc. discontinued operation
+49%	Net Profit +130% inc. discontinued operation

	Q2 2024	Q2 2023	Var	Var %
Sales	440,017	447,368	-7,351	-1.6%
EBIT	34,396	23,583	10,813	45.9%
EBIT (Before Others)	33,790	23,583	10,207	43.3%
EBITDA (Continued operation)	57,791	45,689	12,102	26.5%
EBITDA	58,414	44,507	13,907	31.2%
Net Profit (Continued operation)	14,900	9,993	4,907	49.1%
Net Profit	15,247	6,622	8,625	130.2%

SALES & EBIT BY DIVISION *

Q2.2024 Results VS. Last year (K NIS)

*
		Sales			EBIT	*
	Q2 2024	Q2 2023	Var %	Var % (Org.)	Q2 2024	Q2 2023
Albaad Europe	348,597	336,531	3.6%	2.7%	30,688	12,274
% from sales					8.8%	3.6%
Albaad IL % from sales	55,216	59,040	(6.5%)	(6.9%)	3,128 5.7%	997 1.7%
Albaad Fabric IL	82,760	83,268	(0.6%)	(1.5%)	3,547	7,056
% from sales					4.3%	8.5%
Albaad Fem IL % from sales	51,952	64,699	(19.7%)	(21.2%)	2,581 5.0%	10,655 16.5%
Intercompany	(98,508)	(96,170)			(687)	(637)
HeadQuarter & Others					(5,467)	(6,762)
Total Company	440,017	447,368	(1.6%)	(3.3%)	33,790	23,583
% from sales					7.7%	5.3%
Other Income/Expenses					606
						23,583
Total Company	440,017	447,368	(1.6%)	(3.3%)	34,396

HIGHLIGHTS

H1.2024 Results VS. Last year (K NIS)

-0.5%	Sales Sales in original currency -3.5%
+44%	Operating Profit
	+48% including others
	EBITDA
+26%	+37% inc. discontinued operation
+44%	Net Profit +270% inc. discontinued operation

Sales in original currency -3.5%		H1 2024	H1 2023	Var	Var %
	Sales	856,239	860,661	-4,422	-0.5%
Operating Profit	EBIT	60,151	40,508	19,643	48.5%
+48% including others	EBIT (Before Others)	59,545	41,220	18,325	44.5%
	EBITDA (Continued operation)	106,069	84,037	22,032	26.2%
EBITDA +37% inc. discontinued operation	EBITDA	107,040	77,947	29,093	37.3%
	Net Profit (Continued operation)	24,412	16,943	7,469	44.1%

SALES & EBIT BY DIVISION *

H1.2024 Results VS. Last year (K NIS)

*
		Sales			EBIT	*
	H1 2024	H1 2023	Var %	Var % (Org.)	H1 2024	H1 2023
Albaad Europe % from sales	674,607	638,660	5.6%	2.7%	53,775 8.0%	20,152 3.2%
Albaad IL % from sales	111,045	115,412	(3.8%)	(4.9%)	6,201 5.6%	(411) (0.4%)
Albaad Fabric IL % from sales	159,804	182,610	(12.5%)	(15.0%)	6,636 4.2%	20,368 11.2%
Albaad Fem IL % from sales	101,088	132,083	(23.5%)	(25.7%)	3,873 3.8%	20,291 15.4%
Intercompany	(190,305)	(208,104)			46	(6,617)
HeadQuarter & Others					(10,986)	(12,563)
Total Company % from sales	856,239	860,661	(0.5%)	(3.5%)	59,545 7.0%	41,220 4.8%
Other Income/Expenses					606	(712)

BALANCE SHEET

BALANCE SHEET	AS OF 30.06.2024 VS. 31.12.2023 (K NIS)
22M	Cash on hand	Cash and cash equivalents Trade Receivables	30.06.2024 22,079 225,546	% from total 1% 15%	31.12.2023 19,133 213,956	% from total 1% 14%
21M	Reduction of inventory	Inventory Other Current Assets Total Current Assets	307,916 30,112 585,653	20% 2% 38%	328,969 32,184 594,242	21% 2% 38%
		Non Current Assets Total Assets	961,429 1,547,082	62% 100%	988,361 1,582,603	62% 100%
434M	Equity	Credit from banking & institutions Trade Payables Other Current Liabilities	405,047 203,314 148,048	26% 13% 10%	392,243 222,718 98,222	25% 14% 6%
28%	Equity from total balance sheet	Total Current Liabilities Long-Term Loans from banks Other Long-Term Liabilities	756,409 109,817 246,781	49% 7% 16%	713,183 163,422 302,756	45% 10% 19%
		Total Long-Term Liabilities Equity	356,598 434,075	23% 28%	466,178 403,242	29% 25%
		Total liabilities	1,547,082	100%	1,582,603	100%

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

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 next year
• Approximately 161M NIS invested up to June 2024 from total budget of about 200M NIS

SUMMARY

Improvement in our result

• EBIT
• EBITDA
• GROSS PROFIT
• NET PROFIT

Maintaining positive performance for H1.2024

• Operating Cash Flow of 83.6M NIS
• (1)
• (2)

Net Liabilities to EBITDA Ratio 1.59 (Covenant <3.6)

Tangible Equity Ratio 29.2% (Covenant >21%)

FINANCE STRENGTHENING PLAN SIX QUARTERS SUMMARY Q1.2023 up to Q2.2024 (M NIS)

* Operating CF 233 m (in 2023) + 84 M (in H1.2024) = 317 M – Repayment of Liabilities for lease 45 M + sales of assets & other adjustments 10 M ** IFSR16 impact = Repayment of Liabilities for lease 45 M

FURTHER STRENGTHENING & FUTURE GROWTH Dimona Green hybrid production line as milestone for growth,

Further Finance Strengthening

- Optimizing our debt structure, launching a refinancing program 50M NIS long term loans was done in July 2024

Future Growth

• aligns with our sustainability strategy
• Focusing on new customers & Innovation products expanding Europe sales teams
• Expand Poland warehouse to improve logistics costs & to support more capacity
• Establish production excellence project to enhance efficiency