Ginegar Plastic Products Ltd. — Investor Presentation 2021

Jun 1, 2021

1

INVESTOR PRESENTATION TLV: GNGR

JUNE 2021 | WWW.GINEGAR.COM

Disclaimer

GINEGAR AT A GLANCE

Ginegar is a leading producer of smart covers, offering a broad product portfolio and customized solutions suited to advanced agriculture and technical films used for a multitude of applications. Over half a century Ginegar has earned a solid reputation, showing consistent growth and profitability from year to year.

1970 Established in Israel

~64,000

Tons per year production capacity

~500 Employees worldwide

540M Sales in ILS in 2020

6

Manufacturing sites: Israel (3), Italy, India, Brazil

~73M

EBIDTA in ILS

in 2020

Q1 2021 Sales 142M | EBIDTA 17.5M

COMPANY MILESTONES

GLOBAL PRESENCE

Operating in over 60 countries worldwide

YEARS OF PROVEN RESULTS: 2016-2020

FILM SALES KTONs

REVENUES M ILS

EBITDA M ILS

2016 2017 2018 2019 2020

REVENUES – PER BUSINESS SECTOR (M ILS)

Agricultural Covers Technical Films

MANAGEMENT STRUCTURE

TWO KEY BUSINESS SECTORS

Smart cover

solutions

AGRICULTURAL SMART COVER SOLUTIONS

Serving growers, turnkey agricultural companies , regional & national distributors

Paradox

Advanced Agriculture Covers

GLOBAL AGRICULTURAL DEMAND FOR FILMS

Estimated at 15 Billion USD*

GROWTH IN DEMAND BY CATEGORY

2014 - 2024, KTONs

Avg price: 2.5 USD x estimated weight per kg.

Greenhouse Covers Mulch Films Silo Bags

*Source: AMI report, the global agricultural film market 2014-2024

COMPOSITE FILM SOLUTIONS

Serving specialized distributors in each segment

ADVANCED COMPOSITES ON THE RISE

Serving OEMs, distributors and end users in various industries

WHAT IS A COMPOSITE MATERIAL?

A solid material, which is the result of two or more different substances, each with its own characteristics, combined to create a new substance whose properties are superior to those of the original components.

Composite materials are the ultimate designer's material, and as such one of the fastest growing sectors in the industry. Used in a wide range of products and applications advanced composites have:

• Superior strength to weight ratio
• Strong and enduring material
• Reduce waste in production
• Resistant to corrosion
• Can be molded into complex shapes

HIGH PERFORMANCE VACUUM BAGS FOR COMPOSITE MATERIALS

Ginegar offers new generation, high performance, vacuum bagging that is required for the production process of composites.

THE OPPORTUNITY

A qualified supplier, with global reach, recognized for its uncompromising quality and standards, standards Ginegar - Flextech Srl. is an expert in the production of vacuum bagging films for large blades for both offshore and onshore energy fields.

Films for Advanced Composites

TECHNICAL FILM SOLUTIONS

Serving the Automotive, Maritime, Aerospace, Building, and Electronics industries

Paradox

AT THE FOREFRONT OF MANUFACTURING TECHNOLOGY

Firmly focused on our customers, we aim to develop products and solutions that answer their needs, solve their challenges and have minimal impact on the environment.

From product development and processing methods, to manufacturing practices, and the implementation of new materials and formulations, we rely on the experience and professionalism of our in-house scientists, engineers, and technicians, and encourage creativity among our team. Our strong relationships with universities, start-up hubs and technological incubators ensure that we are always at the forefront of industry innovation.

TECHNICAL FEATURES INCLUDE:

Heat stabilizers | Flame retardants | Moisture barrier | Ability to use nylon

Ginegar-Flextech Srl. uses 9-layer technology to extrude very wide films and welding technology to produce films that span 48m/157feet. Using large extruders enables the production of widediameter, high performance barrier films requiring pinhole

resistance and immense mechanical strength.

ALWAYS INNOVATING

New applications expand offering of current products

New product development customized solutions to meet evolving market needs

Current product improvements more value to customers (improved optical properties, longer lasting films, and more)

New manufacturing technology & improvements efficiency & expansion (seeking new ways to be more competitive for our customers)

FOCUS ON SUSTAINABILITY

When choosing our partners for collaborative JVs in R&D projects, we seek:

Recycling companies

Producers of compostable & recyclable polymers

Agri-additives or raw materials to be incorporated into our films

SUSTAINABILITY: CURRENT ACTIVITIES

IN OUR PRODUCTS:

• Our films for composites have many positive environmental impacts: reduction of fuels, gas emissions and material waste.
• We have developed compostable and biodegradable mulch films for sustainable agriculture.
• Our agricultural smart covers:
  • ü Reduce the need for pesticides and herbicides.
  • ü Enable a more efficient use of land for intensive agriculture.
  • ü Reduce water and energy consumption in greenhouses, tunnels and orchards.

IN OUR OPERATIONS:

• We recycle all of our film waste in-house.
• Our plant in Italy is powered by solar energy.
• By 2022 our manufacturing site in Israel will operate entirely on natural gas.

FINANCIAL PARAMETERS (M ILS)

	2019	2020	Q1 2021
Sales	539.9	541.2	142.6
Operating Profit	30.0	40.5	9.4
%	5.6%	7.5%	6.6%
EBITDA	61.4	72.8	17.5
%	11.4%	13.5%	12.3%
Net Profit	15.5	24.3	5.3
Equity	220.9	237.2	228.2
Net Debts	140.4	47.4	28.7
Dividend	10	15	---

FINANCIAL PARAMETERS (M ILS)

	2020 2021				Accumulated
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1 2020	Q1 2021
Sales	135.00	130.10	149.50	126.60	142.6				135.00	142.6
Gross Profit	33.3	28.1	31.3	22.9	29.4				33.3	29.4
%	25%	22%	21%	18%	20.6%				25%	20.6 %
Operating Profit	11.5	11.5	12.6	6.41	9.4				11.5	9.4
%	9%	9%	8%	5%	6.6%				9%	6.6 %
Net Profit	5.6	7.3	8.0	3.4	5.3				5.6	5.3
EBITDA	20.30	18.60	20.01	13.89	17.5				20.30	17.5
%	15%	14%	13%	11%	12.3%				15%	12.3 %

FINANCIAL PARAMETERS (M ILS)

31.12.2018 31.12.2019 31.12.2020 31.3.2021

Net Debt	183.4	140.4	47.4	28.7
Equity	213.9	220.9	235.3	228.2
Assets	627.8	606.7	606.6	646.4
EBITDA LTM	52.6	64.6	72.8	70.0

Net Debt / EBITDA	3.49x	2.31x	0.65x	0.41x
Equity Rate	34.1%	36.4%	39.1%	35.3%

21

THANK YOU!

INFO@GINEGAR.COM | WWW.GINEGAR.COM