Highcon Systems Ltd.

Investor Presentation • Nov 30, 2020

OPPORTUNITY TO INVEST IN A GLOBAL DIGITAL PACKAGING LEADER

November 2020

DISCLAIMER

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Highcon Systems Ltd. (the "Company") and should not be regarded as a recommendation or an opinion on such matters.

The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its business required for any decision concerning an investment in the Company's securities.

This Presentation includes forecasts, estimates, assessments, expectations and other information, intent or belief pertaining to future events and/or matters, which constitute "forward-looking statements" as defined in the Securities Law 5728-1968, which is based on current expectations, projections and assumptions about future events. Actual results may differ materially due to variety of factors, some of which the Company has no control over and cannot be reasonably foreseen at this date, including, but not limited to: dependency on third parties engaged by or who contracts the Company and its services, change in the overall economy; the duration and severity of the COVID-19 (coronavirus) pandemic and its impact on the Company and on local and global economy and the Company's ability to manage and develop its business. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation. Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent thirdparty sources the accuracy of such information and the assumptions on which such information is based have not been independently verified.

The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.

TODAY'S PRESENTERS

Shlomo Nimrodi CEO

Many years leading multiple global companies as CEO including CFO & COO of Indigo

Eitan Varon CFO & CMO

26 years in the print industry. Scitex, Printar, VIM

THE HIGHCON VISION

TO BRIDGE THE GAP BETWEEN AGILE PRODUCTION & DESIGN CREATIVITY WITH INNOVATIVE DIGITAL TECHNOLOGY

AGILE PRODUCTION

https://youtu.be/d6Uvmw-F65g

THE MARKET GAP MOVING FROM ANALOGUE TO DIGITAL

HIGHCON AT A GLANCE THE WORLD'S FIRST DIGITAL FINISHING SOLUTION DISRUPTING A 150 YEAR-OLD INDUSTRY

HIGHLY SUCCESSFUL REPOSITIONING OF THE BUSINESS

HIGHLY ACTIVE MANAGEMENT WITH PROVEN TRACK RECORD AND INDUSTRY LEADERS

Shlomo Nimrodi CEO

Many years leading multiple global companies including CFO & COO of Indigo

Eitan Varon CMO & CFO

26 years in the print industry – Scitex, Printar, VIM

Dvir Harmelech CTO, Head of R&D

Indigo, Applied Materials, NegevTEch, Landa

Tal Harmon VP Special Project Development

25 years R&D and management roles in Scitex and HP Scitex

Jens Henrik Osmundsen VP Sales & GM EMEA & APAC

30 years in the print industry – Indigo/HP

Michael Ciaramella VP Sales & GM Americas

27 years in the print industry – Microsoft, HP, Scitex, Kodak, Agfa

Shmuel Haham VP Operations & Customer Success

Operations management roles at Indigo, EMC, Comverse, MRV, Attenti

HUGE MARKET IN EARLY TRANSFORMATION Commercial & Carton Packaging Corrugated & Folding Carton Digital Printing \$600B \$450B \$104B \$7B Digital Finishing Equipment Opportunity 17.4% Digital value penetration 14% CAGR growth Mega trends are moving the industry to Digital Finishing

Sources: Smithers Pira, Karstedt Partners LLC.

5 MEGA MARKET TRENDS DRIVING THE NEED FOR A DISRUPTIVE FINISHING SOLUTION

5 MEGA MARKET TRENDS DRIVING THE NEED FOR A DISRUPTIVE FINISHING SOLUTION

• l Brand Owners increasing attention to consumer delight / Experience – standout, easy to open, dual-purposes l Customization
• l Shorter lifetime of designs (~6 months)

ISRAEL IS THE WORLD'S HUB FOR DIGITAL PRINTING

Multiple successful exit events (IPOs / M&A)

Highcon is leveraging the global leadership and experience of Israeli industry pioneers

OUR CUTTING-EDGE SOLUTION

Digital File Process Die-Cut Manufacturing Wood plate and stripping tool (days to weeks) Setup Tools Production Warehouse / Trash Install & (hours) Setup

ready in Days or Weeks

Note: The conventional die-cut process illustration includes only select steps.

HIGHCON SIGNIFICANT VALUE PROPOSITION

Robust Solution Portfolio – ASP FROM \$600K - \$2.2M

WHO DO WE SELL TO?

	Medium to Large Corrugated & Folding Carton Producers	Online Web-to-Pack Businesses	"Emerging" Commercial printers
Motivation	Process improvement vs. conventional manufacturing lines	Speed to market, short runs, and cost-efficiency	Diversification, specialization
Primary Customers	Large Brand Owners	SMEs	SMEs
Examples of Customers

Relying on Internal Sales Force and Growing Distributor Network

>15,000 Potential Customers

LEADING BRANDS ALREADY USING HIGHCON TECHNOLOGY

Amazon, P&G, Nestle, Coca Cola, Pepsico, Mondelez, Kraft Heinz, Barilla, etc., etc.

APPLICATIONS BY PRIMARY MARKETS

CORRUGATED – DISPLAY & PACKAGING

FOLDING CARTON

THIMM Award-winning packaging

PACKAGES TARGETED AT INFLUENCERS Limited edition promotion Sent to bloggers and influencers PACKAGES FOR E-COMMERCE Innovating to create powerful visual impact Customers keep the boxes, driving brand loyalty DUAL-PURPOSE SAMPLES PACKAGE Ship in Own Container Protects while maintaining brand exposure

OBAL ROKU packaging competition Differentiate, surprise and engage

VIRTUAL PACKAGING From prototypes to full production

RAMP UP FOR SMALLER BRANDS

• No MOQ JIT packaging
• Volumes grow to match

sales

OUTSOURCE TO OTHER CONVERTERS

• Effective production of smaller quantities
• Open market sales

FOCUS ON RAPID TURNAROUND

• ~50 new customers/month
• Word of mouth referrals

GAFS KARTONG One of first Euclid customers

MONO-MATERIAL PACKAGE

• Board to replace plastic tray insert
• Eye-catching outer box

PACKAGES THAT ARE SUSTAINABLE

• Natural box for health-brand soap
• Client insisted on sustainable process

DUAL-PURPOSE PACKAGE

• Package and shelf display
• Highly effective perforation ensures good display on shelf

https://youtu.be/SOmDkmpnrF4

SECURED STRATEGIC ACCOUNTS

Potential for future business

Business Description:	• One of the world's largest paper & packaging companies • \$18B revenues • 94 operating facilities	• Based in Germany • ~€650M revenues • 19 production sites across 6 countries	• Leading commercial printing player • \$2B revenues	• Major packaging and labels player • ~\$1B revenues • 36 companies in Europe, US and China	• Based in Australia • \$3B revenues • 43 manufacturing plants across 7 countries
Highcon Wins:	• Beam2 & Euclid 5C	• Beam2C • Hosting Highcon Open Houses	• Euclid 5 x 2	• Beam2	• Beam 2C

ENABLING 'WEB-TO-PACK' BUSINESSES EMERGING CATEGORY

Web-to-Pack are web platforms that enable any SME to design custom packing and print in 48hrs !

• On-trend with e-Commerce boom
• On-trend with growing demand for customization
• On-trend with consumer delight and flexible design
• Globalizing SME businesses shipping worldwide

User Friendly, Quick Process

Value Proposition for SME Customers

Super Fast Ordering

Large SKU Selection Without The High Cost of Inventory

COMPETITIVE LANDSCAPE

KEY HIGHLIGHTS On path to replicate Israeli success stories in digital printing

• Category creator in the large, growing global packaging and display industry
• Disruptive, cutting-edge digital solution solving changing industry needs and replacing 150 years-old industry
• Proven technology and go-to-market strategy create clear path for growth first mover advantage!
• Blue-chip customer base and consumer brands
• Sizeable growth trajectory with highly attractive recurring revenue business model
• Experienced management team with proven exit track record, backed by world-class strategic & financial investors

THANK YOU

info@highcon.net