Amiad Water Systems Ltd. — Audit Report / Information 2025

Mar 31, 2026

Convenience Translation of Extracts of the 2025 Audited Financial Statements

This convenience translation of extracts of the 2025 Audited Financial Statement of Amiad Water Systems Ltd. (the "Company") that were published in Hebrew on March 30, 2026, is rendered for the convenience of reading only. This translation from Hebrew does not include the full results and financial information of the Company nor the financial notes. It is not intended to replace the need to review the reports published by the Company to the public, including the Company's annual report as of December 31, 2025 and the Company's consolidated financial statements as of December 31, 2025, in order to obtain a complete picture regarding the Company's activities and the risks the company faces. In the event of any discrepancy between this translation and the 2025 Financial Statements of the Company that were published in Hebrew on March 30, 2026, the later shall prevail.

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1

AMIAD WATER SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	December 31
	2025	2024
	$ in thousands
Assets
Current Assets:
Cash and cash equivalents	8,652	11,566
Financial assets at fair value through profit or loss – derivatives	-	520
Trade and other receivables:
Trade receivables	31,787	32,989
Other receivables	10,384	12,431
Inventory	40,101	39,552
Current tax receivables	968	429
Total Current Assets	91,892	97,487
Non-Current Assets:
Long-term receivables	351	123
Property, plant and equipment	13,834	14,814
Intangible assets	14,151	14,746
Right-of-use assets	14,807	14,260
Deferred tax assets	3,753	3,024
Total Non-Current Assets	46,896	46,967
Total Assets	138,788	144,454

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AMIAD WATER SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	December 31
	2025	2024
	$ in thousands
Liabilities And Equity
Current Liabilities:
Borrowings from banking corporations	22,830	23,823
Financial liabilities at fair value through profit or loss – derivatives	-	5
Trade and other payables:
Trade payables	12,738	12,624
Other payables	13,005	15,546
Current lease liabilities	2,924	3,153
Current tax liabilities	25	461
Total Current Liabilities	51,522	55,612
Non-Current Liabilities:
Employee benefit obligations	522	426
Lease liabilities	15,374	13,098
Deferred tax liabilities	16	40
Total Non-Current Liabilities	15,912	13,564
Total Liabilities	67,434	69,176
Equity:
Capital and reserves attributable to owners:
Share capital	3,954	3,952
Capital reserves	51,657	49,515
Capital reserves from translation differences	(8,100)	(8,877)
Transactions with non-controlling interests	(8,784)	(8,784)
Retained earnings	32,627	39,472
Total Equity	71,354	75,278
Total Liabilities and Equity	138,788	144,454

Yariv Avisar
Chairman of the Board

Shai Michael
Chief Executive Officer

Alex Kannor
Deputy CEO, Chief
Financial Officer

Date of approval of financial statements by the board of directors: March 29, 2026.

2

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AMIAD WATER SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Year ended December 31
	2025	2024	2023
	$ in thousands
Revenue	120,260	130,791	123,656
Cost of revenue	81,134	84,696	75,120
Gross Profit	39,126	46,095	48,536
Research and development expenses	3,250	3,105	2,912
Selling and marketing expenses	27,340	28,197	27,812
General and administrative expenses	11,895	11,411	10,591
Other income	(66)	(314)	(2,941)
Operating Profit (loss)	(3,293)	3,696	10,162
Finance income	2,179	618	260
Finance expenses	(4,002)	(3,426)	(4,168)
Finance expenses, net	(1,823)	(2,808)	(3,908)
Profit (loss) before income tax	(5,116)	888	6,254
Income tax expenses (income)	(336)	840	1,975
Profit (loss) for the year	(4,780)	48	4,279
Other comprehensive income (loss):
Items that will not be reclassified to profit or loss:
Remeasurements of post-employment benefit obligations	(34)	(66)	(31)
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations	777	(993)	(211)
Other comprehensive income (loss) for the year	743	(1,059)	(242)
Total comprehensive income (loss) for the year	(4,037)	(1,011)	4,037
	$
Earnings (loss) per share attributable to the ordinary equity holders of the Company:
Basic earnings (loss) per share	(0.157)	0.002	0.141
Diluted earnings (loss) per share	(0.157)	0.002	0.140

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AMIAD WATER SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

		Attributable to equity holders of the Company
	Number of shares	Share capital	Capital reserve	Currency translation reserve	Transaction with non-controlling Interest	Retained earnings	Total equity
				$ in thousands
BALANCE AT December 31, 2023	30,486,292	3,952	49,472	(7,884)	(8,784)	42,424	79,180
Comprehensive income (loss):
Profit for the year						48	48
Other comprehensive loss			(66)	(993)			(1,059)
Total comprehensive income (loss)	-	-	(66)	(993)	-	48	(1,011)
Transaction with owners:
Share based compensation			109				109
Dividend						(3,000)	(3,000)
Total transaction with owners	-	-	109	-	-	(3,000)	(2,891)
BALANCE AT DECEMBER 31, 2024	30,486,292	3,952	49,515	(8,877)	(8,784)	39,472	75,278
Comprehensive income (loss):
Loss for the year						(4,780)	(4,780)
Other comprehensive income (loss)			(34)	777			743
Total comprehensive income (loss)	-	-	(34)	777	-	(4,780)	(4,037)
Transaction with owners:
Capitalization of retained earnings into share premium			2,065			(2,065)	-
Share based compensation			113				113
Exercise of share options	10,859	2	(2)				-
Total transaction with owners	10,859	2	2,176	-	-	(2,065)	113
BALANCE AT DECEMBER 31, 2025	30,497,151	3,954	51,657	(8,100)	(8,784)	32,627	71,354

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AMIAD WATER SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOW

	Year ended December 31
	2025	2024	2023
	$ in thousands
Cash Flows - Operating Activities:
Cash generated from operations	8,546	6,695	7,632
Interest paid	(2,474)	(2,395)	(2,056)
Interest received	113	122	259
Income taxes paid	207	193	-
Income taxes received	(1,103)	(1,109)	(997)
Net cash generated from operating activities	5,289	3,506	4,838
Cash Flows - Investing Activities:
Acquisition of a subsidiary less cash acquired on the transaction date	-	-	(3,432)
Completion of the purchase of a subsidiary	-	-	(1,181)
Payment of contingent consideration	-	(637)	-
Purchase of property, plant and equipment	(2,560)	(3,603)	(2,834)
Purchase of intangible assets	(404)	(757)	(1,437)
Proceeds from sale of property, plant and equipment	79	37	25
Restricted deposit	(318)	28	25
Net cash used in investing activities	(3,203)	(4,932)	(8,834)
Cash Flows - Financing Activities:
Acquisition of minority interests in a consolidated entity	-	-	(7,973)
Dividends paid to Company's shareholders	-	(3,000)	-
Payments of lease liabilities	(4,043)	(3,788)	(3,425)
Receive (Repayment) of short-term borrowings, net	(993)	7,713	14,092
Net cash generated from (used in) financing activities	(5,036)	925	2,694
Effect of exchange rate changes on cash and cash equivalents	36	(118)	(94)
Decrease in cash and cash equivalents	(2,914)	(619)	(1,396)
Cash and cash equivalents at the beginning of the year	11,566	12,185	13,581
Cash and cash equivalents at the end of the year	8,652	11,566	12,185