Kafrit Industries (1993) Ltd. — Investor Presentation 2025

May 22, 2025

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.

Our Place in the Supply Chain

We are here

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.

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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
Key Enabler	Data Technology, Digital Transformation

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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
Reporting Sustainably	We measure our actions, setting long and short-term goals striving to achieve results and Report them

Committing to Sustainability: ESG goals - What we strive for

Emission reduction	A 50% reduction in SCOPE 1 and SCOPE 2 market-based emissions by 2030 across all companies, compared to the base year 2022.
Renewable energy	More than 50% of the electricity consumed by all companies across our group will be renewable by 2030.
Q Product Carbon Footprints (PCFs)	We will be able to provide PCF data for the whole product portfolio by 2027, showing that we acknowledge the importance of transparency in our value chain.
OH&S	Everyday safe: zero incidents, accidents or injuries.
Performance reviews	Grow our talent in a transparent feedback culture, with an annual performance review for each employee by 2026.
DEI	An average of 50% women employed in management positions across the group by 2030, building on our past gender equity achievements.
Training hours	Increase individual employee training and education to 12 hours a year by the end of 2025, and then to 15 hours a year by the end of 2027.
Corruption and discrimination	Zero tolerance — every year upright: zero cases of corruption or discrimination.

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Milestones

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Around the World

Legal Group Structure

Global Leadership Team

02 PORTFOLIO

How our portfolio developed since 2020?

How our portfolio developed since 2020?

The Members of Kafrit Group

The Members of Kafrit Group

Masterbatches and Compounds for different applications

Liquid Colors

Development

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.

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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

1-3.2025 NIS Value Sales

Among our Customers – None of them > 5%

Q1/2025 PERFORMANCE HIGHLIGHTS

Q1/2025 Highlights

EBITDA

Strong EBITDA Result despite a Soft Top-Line due to Uncertainty in the Global Markets

Consolidated P&L – Q1 2025 vs. 2024
		M-ILS
	2025	2024	2024
(Ton)	26	28	(4
Volume	977	300	7%)
Sales	,	,
Sales	334	330	1
	2	1	2%
Materials	194	203	(4
	9	5	2%)
Manufacture	61	50	21
Labor	1	1	9%
&
COST	256	253	0
OF	0	6	9%
SALES
GROSS PROFIT	78 2	76 5	2 2%
	23 4%	23 2%
Sale	27	24	12
Marketing	3	2	5%
&
General	18	15	5%
&	0	6	15
Admin
(income)	0	5	(98
Other	1	0	2%)
expenses
Profit	32	31	3
	8	6	8%
Operating	9 8%	9 6%
	48	50	(2
	7	0	5%)
EBITDA	14 6%	15 1%

Profit and Loss Development - MNIS

	2025			2024			2023	2022	2021	2020
	Q1	Q4	Q3	Q2	Q1	2024
Revenues	334 2	315 6	357 6	350 8	330 1	1 354 0 ,	1 123 0 ,	1 063 2 ,	1 028 4 ,	846 7
Materials Consumption	194 9	193 8	212 3	210 0	203 5	819 6	734 6	731 1	714 1	556 9
Manufacture & Labor	61 1	59 1	61 9	59 3	50 1	230 6	164 7	139 3	121 5	115 9
Of Sales Cost	256 0	253 0	274 2	269 3	253 6	1 050 1 ,	899 3	870 5	835 6	672 8
Profit Gross	78 2	62 6	83 4	81 4	76 5	303 9	223 8	192 7	192 8	173 9
%	23 4%	19 8%	23 3%	23 2%	23 2%	22 4%	19 9%	18 1%	18 .7%	20 .5%
Sale & Marketing	27 3	27 4	29 2	27 5	24 2	108 4	82 5	77 6	66 1	60 7
General Admin &	18 0	19 6	19 4	17 3	15 6	72 0	9 57	46 0	42 9	37 4
Other (income) expenses	0 1	(0 0)	0 1	(0 3)	5 0	4 8	(0 6)	2 4	(1 4) `	0 0
Operating Profit	32 8	15 5	34 7	36 9	31 6	118 8	84 0	66 8	85 2	75 9
%	9 8%	4 9%	9 .7%	10 .5%	9 6%	8 8%	7.5%	6 3%	8 3%	9 0%
(Income) Financial expenses	13 1	(7 2)	12 0	8 6	6 4	19 8	17 8	4 6	0 1	13 8
Taxes Income on	6 9	4 3	6 8	7 4	7 8	26 4	19 2	17 8	20 1	18 9
Profit Net	12 8	18 0	16 0	20 5	16 9	71 5	46 9	44 4	64 9	43 2
%	3 8%	5.7%	4 .5%	5.9%	5.1%	5.3%	4 2%	4 2%	6 3%	5.1%
EBITDA	48 7	30 7	51 3	52 8	50 0	184 7	129 9	104 5	116 6	103 1
%	14 6%	9 .7%	14 3%	15 1%	15 1%	13 6%	11 6%	9 8%	11 3%	12 2%
CAPEX	6 4	8 4	18 9	3 7	8 11	42 9	9 44	53 1	26 3	21 7

Strong EBITDA Result; Volume Decrease was Compensated by Higher Margin and first time BADGER COLOR USA Consolidation

Increase in Net Debt Attributed to Foreign Exchange Rate Growth on 31.3

Improving in Safety KPI, with 0 Severe LTI

Quarterly Sales Development (MNIS)

Working together for the future of plastics.

Quarterly Operating Profit Development (MNIS)

Quarterly EBITDA Development (MNIS)

FCF (MNIS)

Dividend Distribution (MNIS)

(*) Dividend Payment day

*

UNAUDITED BENCHMARK

Market Trends: Public Companies in the Industry

		Sales Q1		EBITDA Q1
		2025	2024	vs YAG	2025	2024	vs YAG
Kafrit Group		334	330	1%	4 9 14.6%	5 18.0%	0 -2%	EBITDA (Million NIS)
Lyondell Basell	Total Company Advanced Polymer Solutions (APS)	7,677	8,304 -8%		655 8.5% 4 6	10.2% 3	1,047 -37% 5 31%	EBITDA before Impariment (Million\$)
Avient	Total Company	826	829	0%	145 17.5%	143 16.9%	1%	EBITDA (Million\$)
	Color, Additives and Ink	519	515	1%	100 19.3%	9 7 18.0%	4%
BASF	Total Company	17,042	17,553 -3%		2,625 15.4%	2,712 -3% 13.6%		EBITDA before special itmes (Million Euro)
	Materials	3,449	3,441	0%	469 13.6%	13.2%	508 -8%
DOW	Total Company	10,431	10,765 -3%		944 9.0%	11.8%	1,394 -32%	EBITDA (Million\$)
	Packaging and Special Plastics	5,310	5,430 -2%		702 13.2%	16.0%	976 -28%
Covestro	Total Company	3,477	3,510 -1%		137 3.9%	7.3%	273 -50%
	Performance materials	1,677	1,689 -1%		1 3 0.8%	4.3%	103 -87%	EBITDA (Million Euro)
Chemours	Total Company	1,368	1,362	0%	166 12.1%	12.4%	191 -13%	Adjusted EBITDA (Million\$)
	Advanced Performance Materials	294		303 -3%	3 2 10.9%	3 0 7.7%	7%
Cabot		936	1,019 -8%		206 22.0%	199 19.3%	4%	Adjusted EBITDA (Million\$)
Arkema		2,381	2,341	2%	329 13.8%	13.9%	350 -6%	Adjusted EBITDA (Million Euro)
Reynolds Consumer P		818		833 -2%	117 14.3%	14.0%	122 -4%	Adjusted EBITDA (Million \$)
Orbia	Total Company	1,811	1,863 -3%		198 10.9%	11.1%	253 -22%
	Netafim	271	256	6%	3 3 12.2%	2 10.5%	9 14%	EBITDA (Million \$)
	Polymer Solutions (Vestolit & Alphagary)	600		658 -9%	5 7 9.5%	8 11.2%	6 -34%
Sealed Air Corp.		1,272	1,330 -4%		276 21.7%	20.6%	278 -1%	Adjusted EBITDA (Million \$)
Silgan		1,467	1,317 11%		131 8.9%	8.5%	112 17%	Operating Profit (Million \$)

Working together for the future of plastics. ⁴² Source: Financial Reports of Public Companies; Benchmark from Public Financial Reports (Unaudited)

Working together for the future of plastics.