Avgol Industries 1953 Ltd. — Investor Presentation 2026

Feb 25, 2026

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February 25, 2026

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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.

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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.

6 +900 +30 +50 Production Sites Employees Countries Served Primary Customers

In 2018 Indorama Ventures acquired the majority stake in Avgol, holding 65.97% of the shares and voting rights and creating a strong strategic partnership.

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Analyst Conference | Strong Footprint to Serve The Global Market

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Analyst Conference | We are Committed to Sustainability and Innovation

DRIVING A BETTER FUTURE THROUGH RESPONSIBLE INNOVATION

Sustainability at the Core

• Reducing environmental impact across operations
• Increasing efficiency and lowering waste streams
• Expanding use of responsible and alternative materials

Innovation That Enhances Quality of Life

• Developing new soft solutions for improved comfort
• Advancing skin wellness technologies to support consumer well-being
• Leveraging cutting-edge capabilities to deliver lighter, higher-performance nonwovens

Creating Meaningful Value Together

• Partnering across the value chain
• Accelerating new product development in response to evolving global needs

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Analyst Conference | USA Expansion

The successful launch of commercial operations of our state-of-theart multi-beam production line at our Mocksville, NC facility, achieved at the end of the first quarter of 2025, underscores our unwavering commitment to innovation, operational excellence and delivering superior value to our customers.

Since the line began commercial operation, basic and relatively simple products were produced on the line, partially utilizing its full capabilities, while progressively ramping up output. In the fourth quarter of 2025, outputs continued to increase gradually, accompanied by improvement in key operational indicators. In the coming months, we will continue to carry out various product qualifications, leveraging the line's full capabilities and further enhance performance, ensuring the highest standards of quality and efficiency.

This expansion, completed on-time and within the planned USD 90 million budget, strengthens our ability to respond quickly to market needs and deliver cutting-edge solutions. Our strategic partnerships and deep customer engagement remain at the core of this success, enabling us to bring market-driven innovations that align with evolving consumer demands in baby care, adult incontinence, and feminine hygiene.

As we move forward, our focus remains clear: driving innovation, increasing capacity, and empowering our customers to succeed in a dynamic marketplace.

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Analyst Conference | Quarter Key Highlights

Q4-25	Q4-24	Q4-25	Q4-24	Q4-25 vs. Q4-24	Q4-25	Q4-24	NET DEBT TO EBITDA
\$13.6M	\$12.9M	\$12.6M	\$11.4M	+7.9%	\$1.2M	\$3.0M	2.75
EBITDA		UL EBITDA		SALES VOLUME	NET LOSS		LEVERAGE

• ✓ Sales volume grew 7.9%, driven by enhancing our soft product portfolio, mainly across North America and Asia.
• ✓ Underlying EBITDA increased 10.3%, primarily due to higher volumes, supported by the new production line in the US, as well as a favorable product mix.
• ✓ After commissioning the new RF5 line earlier in the year, our fourth-quarter efforts focused on the next phase: completing product qualifications, ongoing evaluation and optimization of operational performance, and scaling up production of more advanced soft products.
• ✓ Net Loss of \$1.2M reflects one-time other expenses and increased financing costs, largely resulting from the strengthening of the ILS against the USD (about \$4.7M) as well as the absence of interest capitalization in relation to the new production line project.

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Analyst Conference | Polypropylene Index Trend

Raw material indices continued to decline in the fourth-quarter of 2025. In January 2026, the decline trend has stopped and shifted to slight increases. The company expects these price increases may have a negative but immaterial impact on the first quarter of 2026.

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.

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Analyst Conference | Quarterly Financial Performance

\$Mn	Q4-25	Q4-24	%	Key Highlights
Sales	94.6	91.2	3 .7%	Driven mainly by an increase of 7.9% in sales volume, partially offset by pricing adjustments following lower raw material indexes
Gross Profit	13.0	13.7	4 .8%	Sales growth was more than offset by lower operational efficiency in US, partly linked to the new line which also led to higher depreciation, increased production costs, duties, and FX impact
SG&A Expenses	7.2	7.4	▼ 3.1%	Remain stable, with a slight decrease from improved shipping mix
EBITDA	13.6	12.9	5.5%	EBITDA includes a positive lag impact of \$1.0M, compared to a positive lag impact of \$1.3M in Q4-24
Underlying EBITDA	12.6	11.4	1 0.3%	Higher volumes, supported by the addition of the new line in US, as well as a favorable mix in Russia, partially offset by lower operational efficiency in US, increased production costs, duties, and FX impact
Net Finance Expenses	5.2	2.9	1 79.9%	Increased significantly on the back ILS strengthening against USD, and no interest capitalization to the new line project in US
Net Profit (Loss)	(1.2)	(3.0)	5 9.4%	Driven by lower gross profit, one-time other expenses and increase in finance expenses. Higher loss last year was driven by increased tax expenses in relation to royalties' disagreement in Russia
Operating CF	7.7	11.1	▼ 31.1%	The decrease is primarily driven by changes in working capital

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Analyst Conference | Balance Sheet

\$Mn	31.12.2025	%	31.12.2024	%
CASH AND CASH EQUIVALENTS	51.2	11.1	60.9	13.0
TRADE RECEIVABLES	28.0	6.1	34.0	7.2
INVENTORY	36.1	7.8	38.5	8.2
OTHER CURRENT ASSETS	7.4	1.6	5.3	1.1
TOTAL CURRENT ASSETS	122.7	26.6	138.7	29.6
NON-CURRENT ASSETS	337.8	73.4	330.3	70.4
TOTAL ASSETS	460.5	100.0	469.0	100.0
CREDIT FROM BANKS AND OTHERS	86.0	18.7	88.0	18.8
TRADE PAYABLES	33.3	7.2	37.9	8.0
OTHER CURRENT LIABILITIES	24.8	5.4	22.3	4.8
TOTAL CURRENT LIABILITIES	144.1	31.3	148.2	31.6
LONG-TERM LOANS FROM BANKS AND BONDS	89.3	19.4	107.3	22.9
OTHER LONG-TERM LIABILITIES	23.4	5.1	21.9	4.7
TOTAL LONG-TERM LIABILITIES	112.6	24.5	129.1	27.5
EQUITY	203.8	44.2	191.7	40.9
TOTAL LIABILITIES AND EQUITY	460.5	100.0	469.0	100.0

EQUITY TO TOTAL BALANCE SHEET	+40%
CASH ON HAND	\$51M
NET WORKING CAPITAL	\$44M

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SAY HELLO!

Avgol is proud to support our clients with outstanding technical service and support

To find out more about how Avgol can support your baby care diaper range developments, please visit avgol.com or contact us at: avgolinfo@avgol.com

We Aspire to Create Nonwoven Innovations to Enhance Quality of Life

AVGOL™LTD

9 Shimshon St. Lexus House, 7th floor, Petah Tikva, 4952707 Israel

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