Buff Technologies Ltd.

Earnings Release • Aug 16, 2023

2023 H1 REPORT

Disclaimer

This Presentation by BUFF Technologies Ltd. (the "Company") has been made as a general Presentation about the Company and for the sake of summary and convenience only. The review presented in the Presentation is not intended to be an alternative to the need to review the reports that the Company release to the public from time to time in framework of its obligations under the law, including its report as of June 30, 2023 (in all its parts and appendices) and the company's immediate reports, as published by the Company in the Magna system and on the Tel Aviv Stock Exchange distribution site.

This Presentation does not constitute a public offering of the Company's securities and should not be interpreted as such. The information included in this presentation neither constitute grounds for decision making with respect to an investment nor does it constitute a recommendation or opinion of an investment consultant or tax advisor. Investment in securities in general, and in the Company in particular, is not without risk. The purchase of the Company's securities requires an in-depth review of all information published by the Company alongside the need for legal, accounting and taxation analysis of the foregoing materials.

It should be emphasized that past results are not necessarily indicative of future performance. In preparing This Presentation the Company also relied on information obtained from public sources. the Company may not have access to the facts and assumptions underlying the numerical data, market data and other information included in such public sourced.

The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.

The Presentation may include management information, which are not based on purely accounting rules information / or are "non-Gaap" information and are presented as providing an additional business point of view in relation to the Company's activities and business. These information do not constitute a substitute for the information detailed in its periodic and / or quarterly / semi-annual reports, including its financial statements and / or immediate reports.

This Presentation includes, among other things, Forward-Looking Information, as defined in the Securities Law, 1968, including forecasts, targets, assessments and estimates, including information presented by means of graphs, reviews or in any other or additional way, relating to events and / or future matters, the realization of which is uncertain and not under the control of the Company. This information is based on subjective assessments and assumptions, inherently uncertain and is based in part on an analysis of existing economic, business, legal and accounting information, statistical data published by various entities and authorities, professional publications, studies and surveys, the accuracy and / or completeness of which have not been independently examined by the Company. The realization or non-realization of the Forward-Looking Information may be impacted from risk factors characteristic of the Company as by developments in the economic environment in which the Company operates as well as by external factors such as regulation that may impact its activity. Therefore, it is hereby emphasized and clarified that the future de facto results and achievements of the Company may be materially different than those presented as Forward-Looking Information in this Presentation.

For the avoidance of doubt, it is clarified that the Company is under no obligation to update and/or modify the information included in the Presentation to reflect events and/ or circumstances taking place after the date in which the Presentation was prepared.

\$583.69 billion in 2030. ❖ The video games segment is expected to have an \$88 average revenue per user

• (ARPU) in 2023. ❖ 3.26 billion people in the world play games this year. It is expected to grow by 3.8 billion in 2027.
• ❖ Despite Asia-Pacific being the most significant region in terms of revenue, North America is the largest video games market in the sub-region category. It is expected to reach \$67.53 billion in 2023 and \$80.9 billion by 2025.
• ❖ The US, China, Japan, South Korea, and the UK are the top countries with the most prominent gaming industry market share.

❖ is a unique loyalty program for gamers

• ❖ Play your favorite games or use BuffPay card ➠ Earn points ➠ Redeem them for goods
• ❖ App available across platforms
• ❖ Buff is the METAVERSE we connect games achievements to real life rewards and real life purchases to in game rewards

Buff is the First Public Gaming Company in Israel

We display ads on our App and while users are spending time on our app we are getting payed for it.

Direct activation ads campaigns by leading global brands, unique value to brands and to Buff users.

Gamers can apply online and receive a BuffPay Credit/Debit card in USA or Israel, which they can use for paying anywhere and accumulate Buffpay points for every transaction. Rewarding our gamers for Playing & Paying.

Buff users can enjoy extra benefits by becoming a Premium member and pay an annual / monthly fee.

• Focus on reduce burn rate, striving to reach profitability
• User acquisition focused on high yield users
• Strong BI work to improve marketing effectiveness
• Launched new campaign KFC in USA
• Building new sales channel with OverWolf to support campaigns growth
• BuffPay Israel- intensive efforts to launch the program with Isracard

• Focus on costs and profitability
• Buffpay Launch in Israel
• Growth channels: Mobile, Direct Campaigns, Credit Card
• Substantial improvement in Burn rate from operating activities compared to H2 2022 - A decrease of about 78%

• From August 2023, Israeli gamers can issue a VISA credit card and use it for daily expenses and accumulate Buff points
• Buffpay.il the best and most attractive online shop for gamers
• Building a network of brands and sponsored companies to support this local operation
• During the waiting list period more than 4,000 registrations
• Buffpay US Debit cards All of the efforts were shifted to Israel operation due to the better financial model of Credit card Vs Debit card

• Adding new games to Desktop application
• Mobile- improving the product, increase monetization
• Facilitate infrastructure to support new campaigns launch
• Credit card activation and continuation of developing the user interface and offers
• Retention activity to increase user engagement and lifetime value

BUFF KPI's - 4

• We see a substantial decline in Burn rate from operating activities but a moderate decline in Revenues in the past 18 month
• S&M expenses reduced H1 23 v. H1 22
• S&M->Income ratio has improved, combined with R&D and G&A reduction, leading to lower burn rate from operating activities
• This indicates, for us, that we are approaching the balance point and MoM Profitability

Comparison table

WE ARE LOOKING FORWARD

BUFF aims to become the leading loyalty platform for the eSport and video games industry.

• Our vision is to revolutionize the gamer's loyalty experience.
• We envision a world where every gamer issues their first credit card on BUFF's platform.
• BUFF offers a proven tech solution for multi-platform, multi-game meta infrastructure.
• A vital part of our retention strategy is our platform.

Join us in creating the future of gaming with BUFF!

Download at www.Buff.game