WELCOME TO KAFRIT GROUP

COMPANY PRESENTATION

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.

The current reality for KAFRIT IL

Over the last months, KAFRIT IL has faced challenges that have tested us not just as a company, but as human beings. We've experienced unimaginable loss, and now have a new responsibility to our team members, families, customers, and partners.

KAFRIT IL was born in Kibbutz Kfar-Aza, where the October 7th attacks have left every one of our people in the kibbutz feeling an unprecedented loss. We were devastated to lose our team member Dorit Bar Ilan, our Board member Aviv Kutz, and our SVP Business Development & Innovation Nadav Goldstein.

In the wake of the tragedy, we're committed to using our knowledge and resources to help our team members, families and the Kibbutz Kfar-Aza community move forward. Our focus on people has always driven our ESG commitments and goals, and today this matters more than ever, both to our people and the people of Israel. We've been sending food to families of recruited individuals, financial assistance to those who need it, and paid salaries to those who can't work.

Thanks to the collaborative culture among Kafrit Group's companies and partners, we've kept our business active and resilient, and maintained our high standards of client service, and we were releasing materials under military protection.

Since November 8 th, the KAFRIT IL plant came gradually back to operations, becoming fully operational since mid December 2023. Working together, we started, and we will overcome these obstacles, advance our commitments to all our stakeholders, and emerge stronger than ever.

Our Place in the Supply Chain

Kafrit Group

Masterbatches and Compounds engineered for the future of plastics

Our purpose is to unite talent and technology to drive the future of plastics, together.

Working together for the future of plastics.

Enhance our strong Business Portfolio while Increasing Profitability driven by a significant Transformation from a Production-based Company to a Customer-Centric Company, focused on Added Value Service

Strategic Pillars	Higher Profitability in Business Units		Drive the future, together
	Customer Experience	Operational Excellence	Product Technology	Focus in Colors	Develop our Talent
Mission	Be the Best-in-Class Service and Solution Provider	Excel in every step of the Supply chain	Develop innovative products and integrate new technologies that enable a better future	Become a Multi-Local Player in Colors and enter complementary segments	Foster a culture of collaboration inside and outside
Action	• Design & implement strong customer experience model • Innovative Pricing system based on Technology • Automation in handling materials • Embrace data analytics in Operations • Unlock Raw Material Group's opportunity		• Strategic alliances for breakthrough innovation • Improve Portfolio mix towards innovative solutions • Product Innovation to help our customers become more eco-friendly	• Acquisitions & PMI • Transfer & leverage of knowledge	• Upskill our people • Implement the Sustainability Agenda • Promote communities (internally and externally)
Key Enabler	Data Technology, Digital Transformation

Kafrit Sustainability Strategy for 2030

Our Sustainability aspirations are that our People, Products' design and our aligned Actions, together with our Stakeholders – will make a Better World.

Areas of Action	Operating Sustainably	Living Sustainably	Innovating Sustainably	Business Developing Sustainably
Mission	We continuously limit the negative impact our operations have on the environment	We work to ensure that our people are safe and act according to our values	We help our Customers to become more eco friendly through Product Innovation	We Balance our Portfolio through Relevant Business Development and Strategic Alliances
Report Sustainably			We measure our actions, setting long and short-term goals striving to achieve results and Report them

Including 2024 acquisitions

Milestones

Around the World

Legal Group Structure

Acquired in 10/2022

Global Leadership Team

02 PORTFOLIO

How our portfolio developed since 2020?

The Members of Kafrit Group

Masterbatches and Compounds for different applications

Agricultural films PE Films Flame Retardants Colors Polycarbonate Business Areas Pipes PEX Compounds for Pipes Business Areas Colors Business Areas PEX Compounds for Pipes BOPP Films Business Areas BOPP Films PE Films PP Films Business Areas BOPE PE Films Business Areas BOPP Films Agricultural films Conductive Compounds Colors Business Areas Toll Compounds Special Compounds Custom-made Compounds Business Areas Colors Business Areas Liquid Colors

Working together for the future of plastics. 18

Applications

INJECTION MOLDING / BLOW MOLDING

POLYCARBONATE AND PMMA SHEETS

POLYETHYLENE PACKAGING POLYPROPYLENE CAST AND CALENDER FILMS

HALOGEN FREE SOLUTIONS FOR SHEETS AND PIPES

BLOWING AGENTS

OPTIMIZING BOPP FILM PRODUCTION

CONPEEL COMPOUNDS ANTIOXIDANTS ANTIMONY FREE / REDUCED ANTIMONY FR SOLUTIONS ECOCELL AGRICULTURAL FILM

ADDING VALUE TO FIBERS AND NONWOVENS

Working together for the future of plastics.

Our complete range of innovative, reliable, and economical products

ACID SCAVENGERS ANTIBLOCKING AGENTS ANTIFOGGING AGENTS ANTIMICROBIAL AGENTS ANTISLIP AGENTS ANTISTATICS ANTIOXIDANTS BARRIER MB CAVITATING AGENTS CLEANING COMPOUNDS CONDUCTIVE COLOR CONCENTRATES

CROSS-LINK ELECTRET MB FILLERS FLAME RETARDANTS FOAMING AGENTS HEAT STABILIZER INFRARED ABSORBER LIGHT STABILIZERS LUBRICANTS MATT COMPOUNDS METAL DEACTIVATORS MODIFIER MASTERBATCH NUCLEATING AGENTS ODOR CONTROL OPTICAL BRIGHTENERS PEEL COMPOUNDS PHARMACOPOEIA MB PROCESSING AIDS PURGE AGENTS RELEASE AGENTS SLIP AGENTS SYNTHETIC PAPER COMPOUNDS THERMOSTABILIZERS UV ABSORBERS / UV STABILIZERS WHITE CONCENTRATES

A well diversified portfolio

4-6.2024 NIS Value Sales

Among our customers – None of them > 5%

H1/2024 PERFORMANCE HIGHLIGHTS

H1/2024 Highlights

EBITDA 103MNIS

Strong Financial results despite the softness in the market due to the Macroeconomic environment in some Geographies

Consolidated P&L – 1-6 YTD 2024 vs. 2023
	M-ILS		Change
	2024	2023	2023
Sales	55	45	21
(Ton)	828	918	6%
Volume	,	,
Sales	680	548	24
	9	1	2%

Materials	413	360	14
	5	2	8%

Manufacture	109	82	6%
&	5	6	32
Labor
COST	523	442	18
OF	0	8	1%
SALES
GROSS PROFIT	158 0	105 3	50 1%
	23 2%	19 2%
Sale	51	40	28
&	8	4	0%
Marketing
General	32	27	21
&	9	1	6%
Admin
Other	4	0
(income)	7	3
expenses
	68	37	83
	5	4	2%

Operating Profit	10 1%	6 8%
	102	58	0%
	8	7	75

EBITDA	15 1%	10 7%

EBITDA increased driven by Organic Volume, strongly in North America and recovering in our European companies

Net Debt increases due to the new acquisitions in the first Half of 2024

Non-severe LTI's delivering soft results

OSHA RECORDABLE INCIDENT RATE

OSHA = #LTA / 200KHours

Q2/2024 PERFORMANCE HIGHLIGHTS

Strong Financial results despite the softness in the market due to the Macroeconomic environment in some Geographies

Consolidated P&L – Q2 2024 vs. 2023
	M-ILS		Change
	2024	2023	2023
Volume	27	22	1%
Sales	526	739	21
(Ton)	,	,
Sales	350	271	29
	8	2	3%

Materials	210	180	16
	0	7	2%

Manufacture	59	40	45
&	3	7	9%
Labor
COST	269	221	7%
OF	3	4	21
SALES
GROSS PROFIT	81 4	49 9	63 2%
	23 2%	18 4%
Sale	27	20	37
&	5	0	6%
Marketing
General	17	13	1%
&	3	6	27
Admin
Other	(0	0
(income)	3)	3
expenses
	36	16	131
	9	0	1%

Operating Profit	10 5%	5 9%
	52	27	95
	8	1	1%

EBITDA	15 1%	10 0%