Gencell Ltd. — Investor Presentation 2022

Apr 18, 2022

Investors' Presentation March 2022

Legal 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 Reports 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"). 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 forwardlooking 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 enhancement of the Russian military attack on Ukraine on 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 forward-looking 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.

GENCELL AT A GLANCE

Develop hydrogen & ammonia fuel cells as an independent source of green energy

Traded on the Tel Aviv Stock Exchange (GNCL)

Deployed in 22 Countries

Employees

PhDs & NASA and MIR Space Experts

Patents

Trade Secrets

Accumulated R&D man-years

Technology & Innovation Awards

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GREEN, RELIABLE & RESILIENT POWER

With today's dynamic climate conditions, expanded technology and dependence on digital networks, as companies are investing resources to close economic gaps and extend services around the world, the need for stable, sustainable and available energy is ever increasing.

GenCell is creating a new future of zero-emission fuel cells available to all – everywhere, at all times and to meet any need

GenCell's business is based on the Constantly Growing Market Need for Green Power

Governments & global organizations drive standards, taxes and legislation to restrict the use of non-renewable energy resources

Global warming & the recent pandemic reinforce the need for stable, zeroemission power

The digital revolution and transition to EVs drive the growing demand for energy

Regulations Industry Impact Investments

Incentives to invest in companies advancing carbon neutrality (netzero)

Recognition of hydrogen as a key player in the energy sector & flow of investments to build out the hydrogen economy

POWER FOR HUMANITY

1965

First commercial noble metals use of fuel cells in Space

GenCell is established with a mission to leverage Space technologies to use green power on Earth

GenCell develops fuel cells requiring no

ⁱ 2011 GenCell launches its first commercial hydrogen-based backup solution

2018

2014 ⁱ GenCell takes the next step towards ts vision for green power by launching its off-grid power solution based on ammonia fuel

GenCell announces ts leap to the future by completing the first phase towards its novel method to synthesize green ammonia

2022 ²⁰²¹

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OUR SOLUTION FOR TOTAL GREEN POWER TECHNOLOGY

▪ Green Ammonia Synthesis

GENCELL FOX™

▪

Ammonia -to-Powe

need for fuel transport r Resilient, off-grid power for remote and rural locations, reliable in all weather conditions

GREEN AMMONIA Total green solution on-site,

• from fuel production through to power generation
• Allows long-duration green ammonia production and storage, eliminating the

Hydrogen

GENCELL BOX™ / GENCELL REX™

▪ Economical, long-duration backup power solution -to-Power ▪ Reliable and resistant to severe weather conditions

OUR PRODUCTS

HYDROGEN-TO-POWER

GENCELL BOX™ GENCELL REX™

• Long-duration backup power solution Long-duration backup power
• solution for utilities Reliable & resilient to extreme weather conditions Extends battery backup power

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▪ Suitable for telecom, emergency more communications, medical & EV charging

• ▪ Economical duration from 4 – 40 hours and

AMMONIA-TO-POWER

GENCELL FOX™

• Off-grid power solution ensures uninterrupted operations
• Simple to maintain

▪ IOT Remote Manager™ – enables monitoring and analysis of thousands of units for preventative maintenance

MARKET OPPORTUNITY

GenCell operates in four market segments across 22 countries having a total value of some US\$ 130 billion

• The global Uninterrupted Power Supply (UPS) segment is estimated to value some US\$ 7.7 billion with a CAGR of 11% per annum
• The global industrial battery market, which was estimated to reach some US\$ 10.8 billion reaches an annual growth rate of 6%
• The off-grid electricity infrastructure, valued at some US\$ 100 billion, has an annual CAGR of 4%
• The EV charging market, valued at some US\$ 10 billion, features an annual growth rate of 15%

* This data excludes some US\$ 70 billion attributed to the green ammonia market (Source: Cleantech )

Active Markets

During 2021 GenCell added Select Strategic Partners and Customers

Accelerated Telecom Growth Engine – Deutsche Telekom

Significant progress in executing the strategic agreement signed with Deutsche Telekom (DT) & progress towards closing business with multiple telecom customers

• DT and GenCell announce successful completion of testing of the GenCell BOX™ and now working towards deployment at an active telecom site in Germany
• As we speak, DT is evaluating the GenCell FOX™ at a testing site in Israel as a continuous power substitute for diesel generators
• DT showcased the GenCell BOX in its booth at Mobile World Congress Barcelona
• First GenCell BOX units were delivered to a leading European telecom operator, to soon be followed by supply of GenCell FOX units
• Economic assessment of GenCell FOX initiated by global telecom tower operator managing some 25,000 telecom sites
• Ties continue with Icelandic operator Neyðarlínan ohf to close on winter testing and first commercial orders

Telecom

Important Growth Engine in the Power Utilities Market: Active Customers

• Successful delivery and deployment of 74 GenCell G5rx™/ GenCell REX™ solutions at the State of Mexico power utilities the Federal Electricity Commision (CFE)
• A leading Canadian oil & gas company is deploying a GenCell backup system for its gas pipeline
• State of Washington utility Douglas County P.U.D. deployed an electrolyzer that will fuel the GenCell hydrogen backup system
• First two orders from North American system integrators to deliver backup systems to the gas industry
• Abu Dhabi Ports, manager of 11 seaports across the Middle East, Africa & Europe, successfully completed deploying the GenCell BOX at the seaport in Abu Dhabi and is considering deployment of additional units at critical sites
• Progress on project to deploy GenCell units to backup gas pipeline infrastructure by an oil & gas company in the Emirates

Power Utilities

Collaborations in the Power and EV Charging Sectors

• EV Charging Following signature on a collaboration agreement with global power equipment leader ABB after the successful deployment of a joint solution at the Hillel Yaffe Hospital, the two companies market the joint solution to ABB customers
• Four GenCell stations for EV charging were delivered to EV Motors to enable autonomous hybrid off-grid charging
• GenCell and H. Sterling, the leading hydrogen and ammonia supplier for EV charging in China advance ties towards supply of EV charging stations

Strategic Growth Engine: Green Ammonia – the Fuel of the Future

• Following signature on an agreement with Japanese conglomerate TDK, second largest manufacturer of Li-ion batteries and electronics equipment who supports GenCell's unique, innovative R&D project to synthesize green ammonia from sun, water and air alone, GenCell announced in Q1 2022 a significant breakthrough in the project on meeting the requirements for the first milestone
• The innovative green ammonia manufacturing process will enable production of green ammonia directly from water at temperature and pressure far lower than in the production processes commonly carried out today
• Upon evaluating the project's progress, TDK elected to exercise its right to continue to invest in the project in accordance with the terms of its agreement, enabling continued project development towards the next milestone
• This innovative technology will allow energy storage and availability of green ammonia for traditional uses such as in industry and agriculture

Looking to ▪ the Future

• Positioning GenCell as a leader in the clean energy sector and initiator of the new ammonia-to-power category
• Reinforcing GenCell's status as a backup power vendor to the telecom and utilities sectors while growing quality and quantity of customer install base
• Deep penetration of the EV Charging segment
• Expanded collaboration with ABB
• GenCell FOX initial use by key customers towards a "Big Bang"
• Progress on the Green Ammonia project towards achievement of the next milestone (towards 2023)
• Expansion of technology manufacturing capacity, product range and equipment power capacity

Corporate Responsibility towards a better future with

▪ Promotion of Awareness

Company Events and lectures to promote employee initiatives in the Sustainability arena

▪ Activism

GenCell Incentives and encouragement to participate in third-party Sustainability initiatives

▪ Energy Efficiency

Setting of long and short-term goals for measurement and reporting of energy consumption levels by each department

▪ Incentives

Granting of incentives for sustainable consumption, recycling, reuse and safe and efficient waste disposal at home and at work

▪ Transparency

Routine data collection, analysis and reporting of GenCell's impact on society, environment and government

Balance Sheet - (U.S. dollars in thousands)

	December 31, 2020	December 31, 2021
Assets
Current Assets
Cash and cash equivalents	\$ 33,091	\$ 11,881
Short-term investments	29,949	42,611
Trade account receivables, net	44	2,347
Other accounts receivable	1,306	2,144
Inventories	3,516	1,514
Total current assets	67,906	60,497
Long-term Assets
Restricted cash	394	1,927
Property, plant and equipment, net	3,035	5,411
Operating lease right -of-use assets	4,388	7,687
Other intangible assets	-	5,126
Total long-term assets	7,817	20,151
Total Assets	\$ 75,723	\$ 80,648

Balance Sheet - (U.S. dollars in thousands) cont.

	December 31, 2020	December 31, 2021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Current maturities of operating leases	\$ 861	\$ 1,273
Trade payables	414	1,826
Other accounts payable	2,547	3,247
Total current liabilities	3,822	6,346
Long-term Liabilities
Accrued severance pay	-	16
Grants liabilities	522	621
Operating leases	4,028	7,444
Total long-term liabilities	4,550	8,081
Total Liabilities	8,372	14,427
Shareholders' Equity
Ordinary shares of NIS 0.01 par value	269,644f	287,165
funds	20,467	22,906
Accumulated deficiency	(222,760)	(243,850)
Total shareholders' equity	67,351	66,221
Total Liabilities and Stockholders' Equity	\$ 75,723	\$ 80,648

Capitalization of Development Costs

During 2021, the Company began for the first time to capitalize developments costs and create intangible assets in its balance sheet in accordance with international accounting standards IAS 38.

• Capitalization of development costs during the period reached a total of US\$ 5,126 million for three projects:
• GenCell A5 product development an amount of US\$ 2,492 million
• GenCell BOX product development an amount of US\$ 1.7 thousands
• GenCell G10 product development an amount of US\$ 925 thousands

Following extended analysis of how the products meet the criteria to be recognized as intangible assets as a result of development in accordance with the instructions in Article 57 of the international accounting standard 38, the company reached the conclusion that the three above projects meet the following criteria:

• Technical Feasibility of the intangible asset such that it will be available for use or sale
• Intention to complete the intangible asset
• Ability to use or sell the intangible asset
• How the intangible asset will produce expected future economic benefits
• The existence of technical, financial and other resources
• Ability to accurately and reliably measure the amounts that can be applied to the intangible asset during its development.

Statements of Operations

(U.S. dollars in thousands)

IFRS
For the twelve months ended
	December 31, 2020	December 31, 2021
Revenues	\$ 324	\$ 5,542
Cost of revenues	1,887	8,507
Gross loss	1,563	2,965
Operating costs and expenses:
Research and Development, net	8,287	5,704
Sales and Marketing	4,158	4,780
General and Administration	4,615	6,973
Operating Loss	18,623	20,422
Financial income	1,289	482
Financial expenses	1,717	1,085
Financial expenses, net	428 428	603 603

IFRS
For the twelve months ended
	December 31, 2020	December 31, 2021
Other Income	17	-
Loss before taxes	19,034	21,025
Taxes on income	20	65
Net income for the period	\$ 19,054	\$ 21,090
Other comprehensive income	-	72
Total comprehensive income for the period	\$ 19,054	\$ 21,018

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Statements of Cash Flows - (U.S. dollars in thousands)

	For the twelve months ended
	December 31, 2020	December 31, 2021
Cash flows from operating activities
Net income(loss) for the period	\$ (19,054)	\$ (21,090)
Adjustments to reconcile net income to net cash provided by operating activities:	9,111	10,296
Net cash provided by operating activities	(9,943)	(10,794)
Cash flows from investing activities
loan	-	(2,615)
Change in Other intangible assets	-	(5,126)
Change in restricted short-term deposits	(124)	(1,533)
Change in short-term deposits	(29,949)	(12,662)
Purchase of property and equipment	(921)	(2,454)
Net cash used in investing activities	(30,994)	(24,390)
Cash flows from financing activities
Short-term credit from bank, net	(437)	-
Convertible loans	4,573	-
Exercise of options	33	491

Statements of Cash Flows - (U.S. dollars in thousands) cont.

	For the twelve months ended
	December 31, 2020	December 31, 2021
Issuance of shares, net	69,314	13,739
Loans from shareholders	(281)	-
Receipt of grants	92	-
Payments on account of grants	(1)	(11)
Payments of operating leases liabilities	(618)	(842)
Payments of operating leases interest	(163)	(171)
Net cash provided by financing activities	72,512	13,206
Increase (decrease) in cash and cash equivalents	31,575	(21,978)
Exchange rate differences on cash and cash equivalents	1,212	768
Balance of cash and cash equivalents at the beginning of the period	304	33,091
Balance of cash and cash equivalents at the end of the period	\$ 33,091	\$ 11,881