Erech Finance Cahalacha Ltd.

Investor Presentation • Aug 30, 2021

אוגוסט 2018 August 2021

Forward Looking Information

• This presentation is intended for the purpose of providing information only and should not be construed as an offer or invitation to purchase and / or allocate securities of the Company
• The information contained in the presentation is presented in a summary for convenience only and does not constitute a basis for making an investment decision, recommendation or opinion and does not constitute a substitute for discretion or the collection and analysis of independent information on the part of any potential investor.
• This presentation includes forward looking information, as defined in the Securities Law, 1968. Such information includes, inter alia, forecasts, targets, assessments, estimates and other information relating to future events and / or matters, the realization of which is uncertain and not under the control of the Company ("Forward-Looking Information")
• Forward looking information does not constitute a proven fact and is based only on the company's subjective assessment. The realization or non-realization of forward looking information may be affected, inter alia, by risk factors that characterize the Company's operations, as well as by developments in the general environment and external factors affecting the Company's operations, which are unpredictable and beyond the Company's control.
• The forward looking forecasts and estimates are based on data and information held by the Company at the time of the presentation and the Company does not undertake to update and / or change any such forecast and / or assessment in order to reflect events and / or circumstances that will apply after the presentation.

Significant Events and trend in the first half of 2021

Signature on a NIS 50 million credit facility with Mor Investments.

The doubling of the facility in a banking corporation to NIS 20 million.

I.B.I. has exercised an option and converted the balance of the bond into shares

A number of significant bodies have converted their share of the options.

A sharp increase in revenues and in profitability in the non-banking credit segment.

An increase in demand for credit and an increase in the interest rate on loans and factoring.

The Company is expanding its operations in the Fintech field through Up-Capital and Kiara.

Conversion of some of the Next Gen into shares, and the recording of a significant gain.

An increase of approximately 50% in the Company's shareholders' equity in the H-1/2021 by comparison with the year 2020.

An increase of approximately 26% in the Company's pre-tax profits from non-banking financing operations in the first half of 2021 by comparison with the H-1/2021 .

An increase of 28% in the Company's revenues in the H-1/2021, by comparison with the comparative period in the previous year

A short-term tenor – approximately 77% of the credit portfolio is settled within 120 days and approximately 94% is settled within one year.

The loans portfolio – most of the portfolio is collateralized by first ranking liens on tangible assets, such as: real estate, motor vehicles, engineering equipment, shares in public companies and etc.

Despite the ongoing Corona crisis, the Company has succeeded in increasing its sources of credit, the credit portfolio and the credit margins during the first half of 2021.

Increase in shareholders' equity and credit

Signature on a credit facility of up to NIS 50 million, which is expected to increase the company's operations and its shareholders' equity significantly.

As of June 30, 2021, the ratio of the Company's shareholders' equity to total assets stands at 52% and is not expected to fall below 35% - 40% in the near future.

The Company is taking action to increase its credit portfolio, by various means, included a private issue of bonds, acquisitions and collaborating with companies in the field, with an emphasis on Fintech companies.

• Excludes activities expected following the agreement with Up-Capital and Fintech activities.
• This information is forward looking information as defined in the Securities Law, and is based on the Company's assessments as of the date of the presentation, the realization of which is uncertain.

Results in the non-banking finance segment

	H-1/2021	H-212020	H-1/2020	H-2/2019	H-1/2019
	(in NIS thousands)
come from the provision of credit to customers	5.975	5.397	4.673	3.571	3.021
ost of the provision of credit to customers	-1.242	-1.130	-1.155	-1.090	-859
rovision for doubtful debts	-686	-158	-1.217	-597
inancing income, net	4.047	4.109	2.301	1.884	2.162
dministrative and general expenses	-2.013	-1,409	-1.332	-986	-865
nancing income (expenses)	989	-1.175	1.423	-1.963	-4.744
egmental income (loss) before taxes on income	3,023	1.526	2.393	-1.065	-3.447

The Company has increased its revenues continuously and consistently period on period (in NIS thousands)

The Company's revenues in the years 2019 - 2021

Credit days for customers analyzed by settlement times

ק התי סך ז מ אחו % of Total Portfolio	ח( ש" פי באל ם ) סכו Amount in (NIS thousands)	עון פיר ם ל ימי Settlement Days
34%	20,641	1 - 30
16%	9,599	31 - 60
15%	9,440	61 - 90
29%	17,608	91 - 180
6%	3,772	181 - 365
0%	86	ה שנ מעל Over 1 year

The Company has a wide range of customers in various sectors of the economy

Analysis of the recipients of the credit by sector

Tourism	Event Halls	Construction	Project Management
Miscellaneous	Associations	Agriculture	Real Estate Development
Textile Manufacture and	Hi-tech	Manpower Services
Marketing

The Company has increased its shareholders' equity by 50% in the first half of 2021

Capital Strategy

Increase in equity, increase in credit from banks and institutions

* This information is forward looking information as defined in the Securities Law, and is based on the Company's assessments as of the date of the presentation, the realization of which is uncertain.

Raising funding sources is expected to significantly increase the company's profitability

Revenue and Profit Forecast *

• Excludes expected activity following the agreement with Up Capital. • This information is forward looking information as defined in the Securities Law, and is based on the Company's assessments as of the date of the presentation, the realization of which is uncertain.

advantage.

Raising Bonds from the public

Improving underwriting processes by digital means.

Focusing on diverse populations and with an emphasis on the ultra-Orthodox population

Diversifying financing options, reducing costs and continuing to raise cheaper sources of financing

field for the purpose of leading the nonbank financing field

Leading the Fintech

Thank You

אוגוסט 2018