Gencell Ltd. — Interim / Quarterly Report 2021

Aug 30, 2021

GENCELL LTD. H1 2021 MOVING FORWARD

DISCLAIMER

The information included in this presentation (the "Information") and any other information provided in the presentation is presented for convenience only and does not exhaust all of the data about GenCell Ltd. (the "Company") and the Company's activities, and does not substitute the review of the more detailed information contained in the Company's Periodic Report and its immediate reports, as reported via the Magna distribution site to the Israeli Authority Securities (the "ISA") and the Tel Aviv Stock Exchange Ltd. (the "TASE"), including the Company's periodic report for the first half of 2021. This presentation does not constitute an offer to buy or sell or an invitation to accept offers to purchase any securities of the Company and is intended to the be informational only. Such an offer shall be made only in subject to the Israeli law, after receiving the necessary permits from the ISA and the TASE. The information does not constitute a basis for making an investment decision, nor does it constitute a recommendation or opinion or substitute for the discretion of a potential investor. This presentation does not include the full results and financial information of the Company and the notes to them, and / or the Company's business plans or the description of all of the Company's activities and / or risk factors. Therefore, each investor must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. The presentation does not constitute a substitute for investment advice or investment marketing advice that takes into account the data and special needs of each person and / or investor and the data included in this presentation does not constitute a substitute for individual discretion and judgment of each potential investor. The company is not responsible for the entirety or accuracy of the information, and will not be held liable for any damages and / or losses that may be caused as a result of any use of the information included in this presentation.

To the extent that there is a discrepancy between the information included in this presentation and the information included in the company's reports, the Company's public reports shall prevail. This presentation includes forward-looking information, as defined in the Securities Law, 5728-1968, including forecasts, goals, assessments, estimates and other information pertaining to future events and / or matters, the occurrence of which is uncertain and beyond the Company's control. Any forward-looking information contained in this presentation is based, in addition to existing information of the Company, on current Company expectations and assessments. Although the Company believes the assumptions upon which any forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect.

The main facts and data that are used as the basis for this information are facts and data regarding the current status of the company and its business and economic macro facts and data, all as known to the company at the time of preparation of this presentation. Any forward-looking information contained in this presentation is based, in addition to the existing information of the company, on the Company's current expectations and assessments regarding future developments in the Company, and on the integration of such developments with one other. It should be emphasized that the presentation may include information that has not been included in the Company's reports and reports in the past and / or has been presented in a manner, characterization, editing, processing, or segmentation different from the way this information is presented in the presentation. The realization or non-realization of the forward-looking information will 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 are not under the Company's control.

Also, as of the date of this presentation it is not possible to estimate the full effect of the Corona virus (COVID-19) on the economy and the results of the company's operations. The Company has no certainty that its expectations and assessments, including in respect of its plans, will be materialized, and the results of the Company's operations may differ materially from the results estimated or implied by the foregoing, inter alia due to a change in any of the above factors. The Company also has no certainty that its basic assumptions conditional on third parties will be realized. Thus, readers of this presentation are warned that the actual results and achievements of the Company in the future may be materially different from those presented in the forwardlooking information presented in this presentation.

It is clarified that the forward-looking statements and estimates are based on data and information that was available only as of the time of preparation of this presentation and the Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. The following English translation of the Company's presentation should not be regarded as a substitute for reading the full original Hebrew version of the presentation. This translation was neither prepared nor checked by the Company. Accordingly, the Company does not warrant that the translation fully, correctly or accurately reflects the presentation and its contents. The binding version of the presentation for all intents and purposes is the original Hebrew version, filed by the Company with the ISA through the MAGNA website. Nothing in this translation constitutes a representation of any kind in connection with the presentation, nor should it be regarded as a source for interpretation of the presentation or the Company's reports or statements. In any event of contradiction or discrepancy between this translation and the Hebrew version of the presentation, the Hebrew version shall prevail.

ABOUT GENCELL

• GenCell, (TASE: GNCL) develops unique fuel cell solutions that offer clean power for humanity
• Using innovative and reliable fuel cell technology, GenCell provides affordable, clean backup power for telecom, homeland security, healthcare and automated industries in 18 countries around the world
• GenCell has developed a revolutionary process that allows us to extract hydrogen-on-demand from anhydrous ammonia (NH3), enabling our fuel cells to provide a primary power solution for off-grid and poor-grid sites as well as for rural electrification
• The company employs approximately 95 persons. The company is headquartered in Israel with a worldwide distribution and support network
• GenCell holds unique intellectual property including patents, trade secrets and know-how

ALKALINE FUEL CELLS FOR BROAD USES

Key Highlights H1 2021

\$2.8m in revenues Delivery of 37 units

Strategic agreements with TDK, Deutsche Telecom & CFE

Major progress with product readiness & technology

Growth readiness in HQ, production line and space

\$14.3m in capital raised on TASE from Europe's leading investment fund BNPP Capital and other institutional investors

BALANCE SHEETS (U.S. dollars in thousands)

	December	June 30 ,
		2020		2020		2021
Assets
Current assets
Cash and cash equivalents	\$	33 091 ,	\$	568	\$	16 262 ,
Short investments -term		29 949 ,		-		49 449 ,
Trade receivables account , net		44		116		2 724 ,
Other receivable accounts		1 306 ,		580		1 852 ,
Inventories		3 516 ,		3 387 ,		1 628 ,
Total current assets		906 67 ,		4 651 ,		71 915 ,
Long -term assets
Restricted cash		394		383		2 059 ,
Property , plant and equipment , net		3 035 ,		2 333 ,		3 787 ,
Operating lease right -of assets -use		4 388 ,		4 700 ,		835 6 ,
Other intangible assets		-		-		2 684 ,
Total long -term assets		817 7 ,		416 7 ,		15 365 ,
Total assets	\$	75 723 ,	\$	12 067 ,	\$	87 280 ,

BALANCE SHEETS (U.S. dollars in thousands)

	31 December ,	30 June ,
	2020	2020	2021
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities
Related Parties	\$ -	\$ 2 572 ,	\$ -
Credit Line from Bank	-	641	-
Current maturities of operating leases	861	727	1 254 ,
Convertible loans	-	23 379 ,	-
Trade payables	414	435	832
Other payable accounts	2 547 ,	963	2 599 ,
Total liabilities current	3 822 ,	28 717 ,	4 685 ,
Long-term liabilities
Grants liabilities	522	548	582
Operating leases	4 028 ,	4 014 ,	272 6 ,
Total long-term liabilities	550 4 ,	562 4 ,	854 6 ,
Total liabilities	8 372 ,	33 279 ,	11 539 ,
Shareholders' equity (deficit)
Ordinary shares of NIS 0 01 value par	263	263	274
Additional paid-in capital	289 848 ,	186 579 ,	307 120 ,
Accumulated deficiency	(222 760) ,	(208 054) ,	(231 653) ,
Total shareholders' equity (deficit)	67 351 ,	(21 212) ,	75 741 ,
Total liabilities and stockholders' equity (deficit)	\$ 75 723 ,	\$ 12 067 ,	\$ 87 280 ,

STATEMENTS OF OPERATIONS (U.S. dollars in thousands)

	For the 12 months ended December 31 , 2020		For the 6 months ended
			June	30 , 2020	June 30 , 2021
Revenue	\$	324	\$	204	\$	2 801 ,
Cost of revenue		1 887 ,		863		3 810 ,
Gross profit		1 563 ,		659		1 009 ,
Operating and costs expenses:
Research and development , net		8 287 ,		1 812 ,		2 521 ,
Sales and marketing		4 158 ,		395		2 267 ,
General and administrative		4 615 ,		640		2 438 ,
Operating Loss		18 623 ,		3 506 ,		8 235 ,
Financial net expenses,		428		835		652
Other Income		17		-		-
Loss before taxes		19 034 ,		4 431 ,		8 887 ,
income Taxes on		20		7		6
Net income for the period	\$	19 054 ,	\$	4 348 ,	\$	8 893 ,
Other Comprehensive income		-		-		55
Total comprehensive income for the period	\$	19 054 ,	\$	4 348 ,	\$	8 838 ,

STATEMENTS OF CASH FLOWS (U.S. dollars in thousands)

		For the 12 months ended	6 For the months			ended
	31, December		30, June
		2020		2020		2021
Cash flows from operating activities
Net income(loss) for the period	\$	(19 054) ,	\$	(4 348) ,	\$	(8 893) ,
Adjustments reconcile income cash provided by to net to net operating activities:		9,111		900		3 362 ,
Net cash provided by operating activities		(9 ,943)		(3 448) ,		(5 531) ,
Cash flows from investing activities
Change in restricted cash		-		(113)		-
Change in Other intangible assets		-		-		(2 ,684)
Change in restricted short-term deposits		(124)		-		(1 ,665)
Change in short-term deposits		(29 ,949)		-		(19 500) ,
Purchase of and equipment property		(921)		(90)		(937)
Net cash used in investing activities		(30 ,994)		(203)		(24 ,786)
Cash flows from financing activities
Short-term credit from bank , net		(437)		628		-
Convertible loans		4 573 ,		3 453 ,		-
Exercise of options		33		-		205
of shares Issuance , net		69,314		-		13 ,739
Loans from shareholders		(281)		228		-
Receipt of grants		92		-		-
Payments of on account grants		(1)		(4)		(4)
Payments of operating leases interest		(618)		(48)		(37)
of operating leases liabilities Payments		(163)		(343)		(433)
Net cash provided by financing activities		72 512 ,		3 ,914		13 470 ,
Increase (decrease) in cash and cash equivalents		31 575 ,		263		(16 847) ,
Exchange differences on cash and cash equivalents rate		1 212 ,		1		18
Balance of cash and cash equivalents the beginning of the period at		304		304		33 091 ,
Balance of cash and cash equivalents the end of the period at		33 091 ,	\$	568	\$	16 262 ,

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H1 2021 Technology - Key Developments

H1 2021 - Business to Date

• ✓ Orders Backlog ~\$5.1 M
• ✓ Repeat order for 37 units at value of ~\$3.5M. By end of 2021, 74 systems will be integrated in CFE network. Total order of ~\$7m in 2021.

✓ New orders from utilities:

• Power utility in state of Washington
• National gas and electric company

Operation

H1 2021 - Business to Date – cont.

• ✓ Signed a strategic partnership agreement with Deutsche Telekom (DT), Europe's largest telecommunications company with over Euro 100 Billion turnover.
• ✓ Upon satisfactory completion of the field tests, DT undertakes the adoption and promotion of GenCell's solutions to deliver emission-free power to equipment throughout the DT global ecosystem.

Gaining Momentum With Strategic Partners & Customers

• ❖ Deutsche Telekom AG headquartered in Bonn and by revenue the largest telecommunications provider in Europe.
• ❖ The company operates several subsidiaries worldwide, including T-Mobile.
• ❖ Deutsche Telekom (DT) and GenCell sign strategic collaboration agreement to provide green power to DT mobile and fixed telecom applications based on GenCell's hydrogen & ammonia fuel cell portfolio.

Telecom Market

Energy Management

• ❖ TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan.
• ❖ TDK Corporation (TSE:6762) adds the company to its growing investment portfolio.
• ❖ TDK Ventures invested in the company's disruptive green ammonia technology.

Energy Utility Market

• ❖ The Federal Electricity Commission is the state-owned electric utility of Mexico, widely known as CFE. It is the country's dominant electric company and the country's second most powerful state-owned company.
• ❖ CFE ordered 74 GenCell systems valued at \$7m in 2021.

KEEP RUNNING. WITH FUEL CELL POWER SOLUTIONS.