Arad Ltd. — Investor Presentation 2020

Jun 9, 2020

June 2020

Experienced

Leader in water measurement for over 75 years

Focused

High‐end, full scale solution provider

Transparent

Public group, traded in TASE 125 Index

Global

Products sold in more than 50 countries , 5 operation bases

Innovative

6% of all revenues reinvested in R&D

Continuous innovation

Water prices in selected cities in the world

USD per 1 cubic meter

Water meter expansion will be fueled by:

Technology leaders

Water meters

Revolutionary, precise and super reliable ultrasonic bulk water meter for utilities

Highly precise ultrasonic residential water meter

[13]

WATER METERS AMR/AMI MDM & ANALYTICS

[14]

• • Varied collection of reports and statistical analyses
• • Real‐time location specific alerts on breaches, leaks and suspected theft
• • Seamless interface with automated software systems

MDM & ANALYTICS [15]

consumer applications

IOT Compatible

Extensive real time information of personal water consumption:

• • Web application
• • Smartphone app

Water meter market projected conversion to connectivity

Manual Read Meters

AMR/AMI Meters

92% 8% ReplacmentNew HousingSales Mix

Source HIS, 2015

The rise of water prices Vs. other utilities

• • The north American leg of the ARAD GROUP
• • Strong presence in most of the USA states
• • Technology partner to water utilities for more than four decades
• • 12% US market share

Major ‐ US market Players

k M a r	d d T r a e	k h M t a r e s a r e
N t e p n e u	‐	% 2 4
B M I	d N a s a q	% 2 1
S e n s u s	‐	% 2 1
d A G r a r o u p	‐	% 1 2

The Israeli market

• • Significant movement towards AMI
• • Installed base of more than 1,000,000 Arad AMI meters
• • Promoting additional offerings to water utilities through IoT technologies

• • Spain: Contazara market leader. In Spain major customers: Madrid, Barcelona, Malaga, Sevilia, Valencia
• • Italy: WaterTech – Market leader in Italy. Major costumers: Milano, Rome, ItalGas (AMI Gas Meters)

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The Mexican & South American markets

• • Cicasa as a Mexican market leader
• • Utilizing the assembly and manufacturing capacity of Cicasa

ARAD Group Strategy and Directions

• • Focusing on AMR/AMI driven markets
• • Focusing on high profitability territories.
• • Focusing on technology leadership
• • Alliances with partners, leaders in electricity and smart city
• • M&A as additional growing engine

Financial Data

Sales by Regions ‐ 2019

Focus on AMR / AMI

EBITDA (M\$)

*Year 2017 Adjusted Net Profit eliminating the 8.5 M\$, one time event.

39.8

Net Profit (M\$)

*Year 2017 Adjusted Net Profit eliminating the 8.5 M\$, one time event.

Disclaimer

This presentation includes statements, data and the Arad Group's plans that are "forward‐looking statements", as defined in the Securities Law ‐ 1968, which occurrence is not certain and which are not solely in the Arad Group's control. By their nature, forward‐looking statements involve risk and uncertainty. Whether the forward looking information occurs or not is affected, inter alia, by risk factors characteristic to the Arad Group's operations and external factors which impact the Arad Group and its area of activities.

The information delivered or to be delivered to you does not constitute an offer or a recommendation to make any transaction with regards to the Arad Group securities.

This presentation must be read together with the Arad Group's periodic and immediate reports, and is not meant to replace such reports.