Kafrit Industries (1993) Ltd. — Investor Presentation 2021

Aug 29, 2021

KAFRIT GROUP

SECOND QUARTER 2021 Financial Results

Disclaimer

This presentation does not constitute an offering to purchase or sell securities of Kafrit Group Ltd. (the "Company") or an offer for the receipt of such offerings.

The presentation's sole purpose is to provide information. The information contained in the presentation and any other information provided during the presentation (the "Information") does not constitute a basis for investment decisions and does not comprise a recommendation, an opinion or a substitute for the investor's sole discretion. The Information provided in the presentation

concerning the analysis of the Company's activity is only an extract, and in order to receive a complete picture of the Company's activity and the risks it faces, one should review the Company's reports to the Israel Securities Authority and the Tel Aviv Stock Exchange.

The Company is not liable, and will not be held liable, for any damage and/or loss that may be caused as a result of use of the Information.

The presentation may contain forward-looking statements as defined in the Israeli Securities Law, 5728-1968. All forward-looking statements in this presentation are made based on the Company's current expectations evaluations and forecasts, and actual results may differ materially from those anticipated, in whole or in part, as a result of different factors including, but not limited to, changes in market conditions and in the competitive and business environment, regulatory changes, currency fluctuations or the occurrence of one or more of the Company's risk factors. In addition, forward-looking forecasts and evaluations are based on information in the Company's possession while preparing the presentation.

The Company does not undertake any obligation to update forward-looking forecasts and evaluations made herein to reflect events and/or circumstances that may occur after this presentation was prepared.

Kafrit Group Presence

Kafrit Group Vision

To be a preferred supplier of masterbatches and compounds for the plastic industry, providing our customer globally, innovative and quality solutions suitable to their need over time

MILESTONES

VARIED PORTFOLIO OF PRODUCTS

INJECTION MOLDING / BLOW MOLDING

CONSTAB AND CONPEEL COMPOUNDS

MASTERBATCH AND COMPOUNDS FOR POLYCARBONATE AND PMMA SHEETS

POLYETHYLENE PACKAGING POLYPROPYLENE CAST AND CALENDER FILMS

ANTIMONY FREE / REDUCED ANTIMONY FR SOLUTIONS ECOCELL AGRICULTURAL FILM

HALOGEN FREE SOLUTIONS FOR SHEETS AND PIPES

BLOWING AGENTS

ANTIOXIDANTS

OPTIMIZING BOPP FILM PRODUCTION

ADDING VALUE TO FIBERS AND NONWOVENS

Safety Performance

Injuries Per 200,000 hours worked

8

2019 2020 2021

Highlights – Q2 2021

• Kafrit continues to deliver strong Financial Performance from the beginning of the year
• Volume sold reached ~25KTonnes, 1.5K Tonnes higher than year ago
• Raw material costs continue to rise together with some availability issues; the Company succeeded to off-set those with Inventory management and by selling price increase where needed
• Working capital continued to rise during the second quarter, mainly due to rising raw material prices and despite a decrease in working capital average days

SECOND QUARTER 2021 HIGHLIGHTS

CASH GENERATION in Q2 was affected by Increase in Working Capital driven by Raw materials and Selling Prices (M-NIS)

Q2 EBITDA Growth driven by Volume and Margin Improvement(M-NIS)

Half-Year EBITDA increase driven by Volume and Margin Growth (M – ILS)

SALES (M-ILS)

263.5

Operating profit (M-ILS)

EBITDA(M-ILS)