Elspec Engeneering Ltd. — Investor Presentation 2024

Sep 1, 2024

WHENPOWERMEETSQUALITY ADVANCEDPOWERQUALITYMETERING&SOLUTIONS

ElspecInvestorsPresentation Q1+Q22024

©Elspec2024 www.Elspec-ltd.com|September1st,2024

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Elspec Q1+Q2/2024

Q1+Q2 Results Summary

Q1+Q2/2024 Highlights

Q1+Q2/2024Highlights

Q1+Q22024:

• § Power quality systems revenue increased by ~14% compared to the sameperiodlastyear
• § Meter&software increased by ~11% comparedtothesameperiodlastyear

KeyProjects

TaiwanPlasticCorporation

200G4KAnalyzersmonitorthepowerforaplasticplantinTaiwan enablingadvancedanalysisoftheplantoperations.

SolarRooftopPanels

ElspecEqualizersystemreducedthereactivepower,mitigatedHarmonicdistortionandimproved PowerFactorfromSolarPanelinstallationonrooftopsofindustrialbuildinginthePhilippines.

Wind Farm

30 G5 Multi-Functional Recorders monitor the power at a wind farm in England

KeyProjects

BMRCLIndiaMetroRail

8ElspecG4KAnalyzerswereinstalled atBangaloreMetroRailCorporation Limited(BMRCL)inKarnataka,India substations,addressingthecritical needforreliableandefficientmetro services.

Around688Kpassengersdaily,second onlytotheDelhiMetro.

KeyProjects

MediumVoltageSystemfortheMetalIndustry

Elspecdesignedatotalof15MVArsystemsforametalmanufacturingandprocessing plantownedbyalargeSwisscompanyspecializinginminingandmetalprocessing.

AboutElspec

OurVision

Empoweringaworldofperfectpowerquality forsustainableandefficientenergyuse.

Asagloballeaderinelectricalpowerqualitysolutions,ourmissionistorevolutionize the industry by advancing technologies that set new standards in power quality analysis and monitoring. With over 35 years of expertise, we are committed to delivering innovativesolutionsthat empower our customersto confidently navigate andovercometheirmostcomplexpowerandenergychallenges.

Industry Challenges

• = Increasing complexity of electrical networks
• Growing demand for clean, stable power
• Rising costs due to power quality issues
• = Challenges in integrating renewable energy sources
• · Regulatory pressures for improved power quality and efficiency

Elspec'sComprehensiveApproach

• § Advancedpowerqualityanalyzerswithcontinuousrecording
• § Innovativesoftwareformonitoringandanalysis
• § Real-timepowerqualitycorrectionsystems
• § End-to-endpowerqualitymanagementecosystem

ElspecProductLine

PowerQualityAnalyzers &Recorders

PowerQualitySoftware PowerQualitySolutions

Advanced proprietary compression algorithm

PowerQualityAnalyzers&Recorders

Elspec's advanced analyzers and multifunctionalrecorderscapture,monitorand record all waveform signals continuously at256/512/1024samplespercycle;Every parameter,nothingevermissed.

Our meters & recorders far surpass the highest Industry standards and comply withIEC61000-4-30ClassA.

Elspec's products are equipped with ElspecPQSCADASapphire,enablingaview and analysis of more than 5,000 power parameters at any given resolution from theacquiredwaveformsignals.

PowerQualityAnalyzers&Recorders

PowerQualitySolutions

Equalizer/Activar

OutdoorMedium VoltageEqualizer

Compact&Hybrid Equalizer/Activar LowVoltage

IndoorMedium VoltageEqualizer Elspec'ssystems eliminatevoltagedrops, filterharmonics, improvepowerfactor andproduction efficiencywith transient-free, smoothswitching.

@ = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = & % - , # % % - 1 # 2 % % - . 3 & - - . 3 & - - % 1 # - . ) . ( . - .

WorldwidePresence

WorldwidePowerQualityLeaders

Partners&Customers

ElspecQ1+Q2/2024

Market

MarketPotential

• AIispoisedtodrive160%increaseindatacenter powerdemand
• Theglobalpowerqualitymarketisexperiencing robustgrowth
• Drivenbytheincreasingdemandforreliableand efficientenergysolutions
• Keysectors:industrial,utilities,renewables

Offshore Wind Farms Market

Explosive Growth

Cumulative offshore wind capacity is set to grow 10-fold by 2035

Source: BloombergNEF. Note: See BNEF's 1H 2022 Offshore Wind Market Outlook for list of markets included in the 'Rest of the world' category.

Competition Heats Up

Turbine makers are vying for over 93 gigawatts of projects after 2025

Source: BloombergNEF. Note: Other = Doosan, Goldwind, Hitachi, Mingyang and Senvion.

ElspecGrowthOpportunities

• § Increasingdemandforpowerqualitymanagement
• § Expansionofrenewableenergysector
• § Growingcomplexityofelectricalnetworks
• § Risingawarenessofenergyefficiency
• § Keypartners:Siemens,Vestas,Nordex

§ Stricterregulationsdrivingadoptionofadvancedsolutions

• § 35+yearsofexperienceinpowerqualitysolutions
• § Advancedproprietarytechnologies(PQZIP,real-timecompensation)
• § Comprehensiveproductecosystem
• § Diverseproductrangeservingmultipleindustries
• § Superiordataacquisitionandanalysiscapabilities
• § World'smostadvancedpowerqualityanalysisandcorrectiontechnology

• § Enablingsustainableuseofelectricalenergy
• § Improvingenergyefficiencyacrossindustries
• § Supportingrenewableenergyintegration
• § Commitmenttoreducingcarbonfootprintinoperations
• § Diversityandinclusioninitiatives
• § Ethicalsourcingandmanufacturingpractices

Elspec Q1+Q2/2024

FinancialData

	1-6/2024	1-6/2023	31/12/2023
Sales	51,682	45,959	89,391
Gross profit	27,228	23,105	47,078
EBITDA	11,049	7,213	13,857
Net Finance income	752	1,318	1,339
Net profit	9,131	6,284	10,908

*ThedataispresentedinthousandsofNIS

FinancialData

	6/2024	2023	2022	2021
Total Assets	113,053	100,700	92,753	89,576
Cash on hand and Short-term deposits	8,688	8,460	12,654	13,622
Inventory	39,491	36,112	29,867	24,768
Net operating Cash Flow	3,405	2,234	5,211	2,999

*ThedataispresentedinthousandsofNIS *ThedataispresentedinthousandsofNIS

Financial Data

* The data is presented in thousands of NIS

Thankyou

Oren Harary VP & CTO Elspec +972 52 452 8048 | orenh@elspec-ltd.com ©Elspec2024