Arad Ltd. — Investor Presentation 2023

Apr 3, 2023

April 2023

Experienced

Leader in water measurement for over 80 years

Focused

High-end, full scale solution provider

Products sold in more than 60 countries, 5 operation bases

6% of all revenues reinvested in R&D

ARAD GROUP WORLDWIDE

INTERNATIONAL MARKETS (ROW) Working in over 60 countries on 5 continents and through exclusive distributors in each country

ARAD Over 80 years of high quality water metering solutions

ARAD TECHNOLOGIES

Leading the development of sophisticated AMI systems and IoT solutions

MASTER METER

A Leading AMI solutions provider to the North American market

WATERTECH

A proven Italian marketplace leader

CONTAZARA

A proven Spanish marketplace leader

CICASA Mexico's leading water meter manufacturer and developer

ARAD CHINA High-end product to the

CONTINUOUS INNOVATION

WATER AND THE GLOBAL CLIMATE CRISIS

1 Extreme weather events and changes in water cycle patterns are making it more difficult to access safe drinking water, especially for the most vulnerable children.

Around 74% of natural disasters between 2001 and 2018 were water-related, including droughts and floods. The frequency and intensity of such events are only expected to increase with climate change.

By 2040, almost 1 in 4 children will live in areas of extremely high water stress.

Rising sea levels are causing fresh water to become salty, compromising the water resources millions of people rely on.

WATER

METER

EXPANSION

FUELED BY

Water shortage

Severe droughts throughout the world

Increased demand

International regulations requiring water metering devices to be installed as standard

Water breaches and leaks

Significant worldwide water price increase

NRW (Non revenue water) estimated to 16 Billion \$ a year

ARAD GROUP - FULL SCALE SOLUTION PROVIDER

Water Metering and Management Systems

Develop

Design

Manufacture

Sales & Support

Smart Meters

AMI Infrastructure

IoT Compatible

Consumer Applications

MDM & Analytics

Water Meters

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

Highly precise ultrasonic residential water meter

AMI Solutions

AMR for Drive By

MDM & Analytics

	C = 8	Meters with no recept
nsumption		Meter ID
		00010177777	A
		00010277271
		00010277279	A
		00010277282	A
		00010277289	ਪ੍
		00010246121
		unimali mundumuni di manufacturer	A

• Varied collection of reports and statistical analyses

• Real-time location specific alerts on breaches, leaks and suspected theft

• Seamless interface with automated software systems

Consumer Applications

Read Your Meter Pro*

Extensive real-time information of personal water consumption:

• Web application • Smartphone app

*Available in Israel and USA

THE NORTH AMERICAN MARKET

10%

US

THE NORTH AMERICAN MARKET

• Master Meter is based in Texas
• A skilled team of 150 employees
• Local production, customer support, quality, administration and sales
• Extensive distribution network over 40 states
• Technological leadership with premium products
• Strong and well-known brand names in the market: Allegro, Harmony, Octave

THE ISRAELI MARKET

THE ISRAELI MARKET

• Leader of AMI installation in Israel with significant market share
• Over 1.4 Million Arad AMI meters installed
• R&D center with more than 100 engineers developing state-of-the-art IoT technology for Arad group (LoRa, NB-IoT, Software solutions)
• LR9 AMI system, based on LoRa technology, developed to answer the utility's needs

• Currently focusing on Spain and Italy Contazara in Spain, Watertech in Italy
• A significant trend to smart metering and digitalization
• Technology leadership NB-IoT & LoRa solutions, customized for customers
• Partnership with Telefonica and Vodafone as operators for IoT
• Scaling opportunities with Smart Gas metering

Italy – Major customers

THE EUROPEAN MARKET

• Milano
• Torino
• Bologna
• Padova
• Bergamo
• Genova
• Venezia
• Palermo
• Bari

Spain – Major customers

• Madrid
• Barcelona
• Valencia
• Sevilla
• Palma

ARAD GROUP STRATEGY AND DIRECTIONS

Focusing on AMI driven markets

Focusing on technology leadership

Focusing on high profitability territories

M&A as additional growing engine

FINANCIAL DATA

SALES BY REGIONS - 2022

NET PROFIT (M\$)

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

** Year 2022 Adjusted Net Profit eliminating 6.3 M\$, one-time Tax expense.

EBITDA (M\$)

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

DIVIDEND DISTRIBUTION (M\$)

DISCLAIMER

This presentation is made strictly for information purposes only and does not constitute or form an offer or a recommendation to make any transaction with regards to Arad Group securities.

This presentation includes statements, data and Arad Group's plans that are "forward‐looking statements", as defined in the Securities Law – 1968. Forward-looking information is uncertain and mostly is not under Arad Group's control and the realization or non-realization of forwardlooking information will be affected, among other things, by the risk factors characterizing Arad Group's activity, as well as developments in the general environment and external factors affecting Arad Group's activity. Arad Group's results and achievements in the future may differ materially from those presented in this presentation and Arad Group makes no undertaking to update or revise such projections or estimates and does not undertake to update this presentation.

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

The information in this presentation should not be relied upon as any representation or warranty, express or implied of Arad Group. No reliance should be placed on the accuracy, completeness or correctness of the information contained in this presentation.

THANK YOU.