Avgol Industries 1953 Ltd. — Investor Presentation 2025

Aug 11, 2025

We Aspire to Create Nonwoven Innovations to Enhance Quality of Life

An Indorama Ventures Company

2025 Second Quarter Results

August 11, 2025

למסמך נגיש

Disclaimer

This presentation was created by Avgol Industries 1953 Ltd. (the "Company") and serves as a brief and general overview of the company's activities. It does not provide a comprehensive and detailed description of the company's activities and is not intended to replace a review of the company's financial statements. To gain a complete understanding of the company's operations and the risks it faces, as outlined in the disclosure requirements under the Securities Law, it is essential to refer to its immediate and periodic reports published by the company.

This presentation includes data and information that may be presented, characterized, edited, or segmented differently from the data in the financial statements. It is emphasized that in any case of a discrepancy between the information in the financial statements and the information in this presentation, the information in the financial statements shall prevail.

It is important to clarify that this presentation does not constitute an offer to buy or sell the company's securities, nor does it serve as an invitation to solicit such offers. The information provided herein should not be considered as a basis for making investment decisions, recommendations, or opinions, and it does not replace the investor's own judgment or the review of the company's financial statements.

This presentation may include forecasts, estimates, and data related to future events whose realization is uncertain and/or beyond the company's control, as well as information about the company's intentions or plans. Such information constitutes "forward-looking information," as defined in the Securities Law. The forward-looking information is based on the company's subjective assessment, made in good faith, drawing on experience and professional knowledge acquired by the company. It also relies on facts and data concerning the current state of the company's business, as well as published macroeconomic and/or statistical information from third parties (which the company has not independently verified and for which it is not responsible). This information is presented as it was known to the company at the time of preparing this presentation. However, the company's estimates and plans may not materialize, in whole or in part, or may materialize in a manner different from what was expected (including significantly), as they could be influenced by factors that cannot be predicted in advance and are beyond the company's control.

Analyst Conference | Who We Are

is a global leader in the development, manufacturing, and marketing of nonwoven fabrics, specializing in the hygiene sector.

We also serve a diverse range of industries, including medical, filtration, and construction, providing innovative and high-quality solutions for various applications.

aspires to continue to grow and strengthen its market position by expanding production capacity to meet the continued growth of the hygiene market.

Our aspiration is to base our growth on developing innovative nonwoven products that will bring a solution to the fast changes in trends and preferences, with the goal to enhance the quality of life.

continues to focus on the Hygiene segment while exploring other niches within the nonwovens industry which are synergetic to our expertise and technology.

Analyst Conference | Strong Footprint to Serve The Global Market

Analyst Conference | We Are Committed to Sustainability

How we are planning to do things better:

Partner with others that share the same environmental obligation to achieve new, meaningful, and timely results.

Improved Technologies to increase product performance in lighter weights

Being Proactive by Improving Efficiency and Reducing Environmental Impact in our operations

replace unrenewable resins with alternate materials which minimize negative environmental impact

Recycle PP Waste streams

Analyst Conference | USA Expansion – Project Update

39KMT

We'reexcitedtoannouncethesuccessfullaunchofcommercial operationsofourstate-of-the-artmulti-beamproductionlineatour Mocksville,NCfacility.Thismilestone,achievedattheendofQ1'25, underscoresourunwaveringcommitmenttoinnovation,operational excellenceanddeliveringsuperiorvaluetoourcustomers. Jingmen,China

Duringthesecondquarterof2025,basicandrelativelysimpleproductswere producedontheline,partiallyutilizingitsfullcapabilities,whileprogressively rampingupoutput.Inthecomingmonths,wewillcontinuetocarryoutvarious productqualifications,leveragingtheline'sfullcapabilitiesandfurtherenhance performance,ensuringthehigheststandardsofqualityandefficiency.

Thisexpansion,completedon-timeandwithintheplannedUSD90million budget,strengthensourabilitytorespondquicklytomarketneedsanddeliver cutting-edgesolutions.Ourstrategicpartnershipsanddeepcustomer engagementremainatthecoreofthissuccess,enablingustobringmarketdriveninnovationsthatalignwithevolvingconsumerdemandsinbabycare, adultincontinence,andfemininehygiene.

Aswemoveforward,ourfocusremainsclear:drivinginnovation,increasing capacity,andempoweringourcustomerstosucceedinadynamicmarketplace.

Analyst Conference | Quarter Key Highlights

ü Sales volume increased 12% and driven by stronger demands in North America and Asia.

• ü Underlying EBITDA declined 2.9%, primarily driven by unfavorable product mix and reduced operational efficiency, partly resulting from the commercial launch of the new production line in the USA. This impact was partially mitigated by the higher sales volumes.
• ü Commissioning of the new RF5 line in the USA was completed towards the end of the first quarter and commercial operations have since commenced. The next phase includes various product qualifications, along with evaluating and optimizing its operational performance.
• ü The estimated net impact of the newly implemented tariffs is approximately USD 1M per year, though discussions with both customers and suppliers are still underway.
• ü Net Loss of USD 2.0M is driven mainly by higher finance expenses due to the strengthening of the ILS against the USD.

Analyst Conference | Polypropylene Index Trend

Raw material indices decreased during the second quarter of 2025, especially in North America, although a slight increase took place in July. The Company anticipates this will have a minor negative impact on the results of the third quarter of 2025.

US Contract DDP US\$/KMT NEA Spot CFR China US\$/KMT WE Contract DDP US\$/KMT

This information is forward-looking information, which is based on the information known by the Company at the time this report is being published. This information might not materialize or might materialize in a way that differs from that anticipated, inter alia, if a material change in trend occurs, or due to other parameters that affect the Company's manufacturing costs or the Company's selling prices.

Analyst Conference | Quarterly Financial Performance

\$Mn	Q2-25	Q2-24	%	Jingmen,China KeyHighlights 39KMT
Revenues	93.1	85.4	9.0%	Drivenmainlybyanincreaseof12%insalesvolume
GrossProfit	11.0	12.3	10.5%	Thegrossprofitincludesapositivelagimpactof\$0.6M,compared toapositivelagimpactof\$0.2MinQ2'24
SG&AExpenses	7.1	7.4	4.0%	Maintainedataflatlevel.Thedecreaseisattributedtolowerlabor andconsultingexpenses,offsetbyhigherR&Dexpenses
EBITDA	11.5	11.4	0.7%	EBITDAincludesapositivelagimpactof\$0.6M,comparedtoa positivelagimpactof\$0.2MinQ2'24
UnderlyingEBITDA	10.9	11.2	2.9%	Decreaseduetounfavorableproductmixandloweroperational efficiency,partiallyoffsetbyincreaseinsalesvolumes
NetFinanceExpenses	6.6	1.6	320.0%	PrimarilyhigherFXexpensesduetothestrengtheningoftheILS againsttheUSD
NetProfit(Loss)	(2.0)	1.8	215.6%	Drivenmainlybyhigherfinanceexpenses
OperatingCF	16.3	14.4	13.6%	Remainsstrong,mainlysupportedbyimprovingofworkingcapital changes

Underlying EBITDA USDM 11.3 11.6 11.4 10.5 10.9

Q2.24 Q3.24 Q4.24 Q1.25 Q2.25

Analyst Conference | Balance Sheet

EQUITY TO TOTAL BALANCE SHEET +40 % CASH ON HAND \$66 M NET WORKING CAPITAL \$43 M