Automax Motors Ltd. — Management Reports 2019

Jan 2, 2019

Projected Consolidated Sources and Expected Uses of Funds Statement through December 2020

in thousands of USD							דולר באלפי
	Q4-2018	Q1-2019	Q2-2019	Q3-2019	Q4-2019	2020
Opening balance, net of short term credit	\$ 8,054	\$ 3,847	\$ (1,369)	\$ (1,031)	\$ 1,324	\$ 1,216	בנקאי אשראי בניכוי פתיחה יתרת
Sources :							מקורות:
Cash flow from Operations:							: שוטפת מפעילות תזרים
Mobfox working capital	\$ 1,698	\$ 2,033	\$ 244	- \$	- \$	- \$	ובפוקס הון חוזר מ
Tax Receivable	- \$	\$ 1,351	\$ 198	\$ 920	\$ 3,897	\$ 1,920	והגרמניים מריקאיים המס הא משלטונות החזר מס
Team Internet FCF -	\$ 1,605	\$ 1,411	\$ 2,041	\$ 2,516	\$ 3,466	\$ 9,434	נטרנט שי טים אי מנים חופ תזרים מזו
on WHT Team Dividend	- \$	\$ (1,213)	\$ (501)	\$ (321)	\$ (570)	\$ (1,503)	דנד טים מקור דיבי ניכוי מס ב
Cash flow from Financing activity:
INVESTMENT	- \$	\$ 10,000	- \$	- \$	- \$	- \$	המניות של בעלי השקעה
Cost of investment round	\$ -	\$ (1,000)	\$ -	\$ -	\$ -	\$ -	ההנפקה עלות
Cash flow from Investment activity:							: השקעה מפעילות תזרים
Sale of business units	\$ 6,105	\$ 250	\$ -	\$ -	\$ -	\$ -	myDSP מכירת
	\$ 9,408	\$ 12,831	\$ 1,982	\$ 3,114	\$ 6,794	\$ 9,851
Expected Usage of Funds:							: צפויים שימושים
Operations	\$ (4,161)	\$ (2,300)	\$ (438)	\$ (438)	\$ (438)	\$ (1,750)	טפת עילות שו תזרים לפ
Legal cost of bond settlement	\$ -	\$ (500)	\$ -	\$ -	\$ -	\$ -	משפטיות - החוב הסדר עלות
Bond interest due	\$ (808)	- \$	\$ (975)	- \$	\$ (922)	\$ (1,529)	"ח בעלי האג שנתית ל ריבית חצי
Hedging loss	\$ (98)	\$ (980)	- \$	- \$	- \$	- \$	ר עילות גידו הפסד מפ
Cash flow used for Financing activity:							: מימון לפעילות תזרים
Repayment credit of line	\$ (5,131)	- \$	- \$	- \$	- \$	- \$	ק לאומי אשראי בנ סגירת קו
Bank Leumi deposit	\$ (3,000)	\$ 1,150	\$ 173	\$ 175	\$ 178	\$ 524	ק לאומי פיקדון בנ
Early Bond principal payment	- \$	\$ (1,500)	- \$	- \$	\$ (4,500)	\$ (6,000)	יקי האג"ח קדם למחז תשלום מו
Long term - loan quarterly payment	\$ (418)	\$ (417)	\$ (405)	\$ (407)	\$ (410)	\$ (413)	טווח ות ארוכת עוני הלווא תשלום רב
Payments to Rainmaker	\$ -	\$ (13,500)	\$ -	\$ (90)	\$ (810)	\$ (360)	Rainmaker-ל תשלומים
	\$ (13,616)	\$ (18,047)	\$ (1,644)	\$ (760)	\$ (6,902)	\$ (9,528)
Closing balance, net of short term credit	\$ 3,847	\$ (1,369)	\$ (1,031)	\$ 1,324	\$ 1,216	\$ 1,540	בנקאי אשראי בניכוי סגירה יתרת

Assumptions:

1. The statement assumes settlements between the Company, the bondholders, Rainmaker and any other relevant stakeholders, based on the key features published on January 1, 2019, which include:

2. 1.1 A fundraising with a commitment from key shareholder to invest \$10M

3. 1.2 Payment of \$13.5M to Rainmaker
4. 1.3 Updated payment schedule on the principal of the bonds of \$1.5M. \$4.5M and \$6M in Q1 2019, Eo2019, and Eo2020 respectively

To date no agreement has been signed and there is no assurance with respect to the outcome of the actual foregoing discussions or with respect to the actual implementation of the proposed settlement

* If a settlement cannot be reached, despite the Company's efforts, then the sums due will vary as follows:

• Payment to Rainmaker ~\$18M (excluding interests)

• Payment to bondholders ~\$30M (with a potential claim for immediate repayment)

• The statement is provided on a fully consolidated basis of the Company and its consolidated subsidiaries** resulting in:

• 2.1. inclusion of Team Internet's cash balances, line of credit and free cash flow

• 2.2 assumes no distribution form Team Internet to the Company

• In connection with Bank Leumi's approval of the sale of Mobfox Matomy provided \$3M secured cash deposit to Bank Leumi against its liabilities (long term debt, securities related to lease agreements and Forex hedging). This cash deposit will be reduced proportionately as Matomy repays its liabilities over the next two years

** As a result of the fact that this statement is provided on a full consolidation basis, it differs from the statement published in connection with the key features for a plan to the bondholders, which is presented for Matomy Media Group Ltd. only and excludes all bank cash reserves held by the Company's subsidiary Team Internet

1. Opening balance, is net of Team-Internet's credit line in the amount of \$3,045 (out of a total of \$7M available)

Unreviewed Statement

The statement contains unreviewed financial measures that do not have a standardized meaning prescribed by GAAP.

Cautionary statement regarding forward-looking statements This statement includes certain forward-looking statements, forecasts, estimates, projections and opinions. These forward-looking statements may be identified by the fact that

they do not relate only to historical or current facts or the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements include statements regarding the business strategy, objectives, financial condition, results of operations and market data of the Company and its subsidiaries (the "Group"), as well as any other statements that are not historical facts. These statements reflect the Company's current view with respect to future events and are based on assumptions made the Company (including, without limitation, assumptions concerning currency exchange rate fluctuations, requirements of additional capital, costs of closure of various operations and changes to regulations) and information currently available to the Company.

Although the Company considers that these views and assumptions are reasonable, by their nature, forward-looking statements involve unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of the Group. These factors, risks, uncertainties and assumptions could cause actual outcomes and results to be materially different from those projected. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct. These factors, risks, assumptions and uncertainties expressly qualify all subsequent oral and written forward-looking statements attributable to the Company or persons acting on its behalf.

The forward-looking statements speak only as of the date of this announcement. Each of the Company and its respective affiliates expressly disclaim any obligation or undertaking to update, review or revise any forward-looking statement and disclaims any obligation to update its view of any risks or uncertainties described herein or to publicly announce the result of any revisions to the forward-looking statements made in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based or otherwise, except as required by law.

No statement in this announcement is intended, or is to be construed, as a profit forecast or estimate or to be interpreted to mean that earnings per Company share or overall earnings for the current or future financial years will necessarily match or exceed the historical published earnings per Company share or overall earnings.