Kafrit Industries (1993) Ltd. — Investor Presentation 2025

Aug 21, 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.

6

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
	The Group achieved it's 2025 Strategic bottom line goal already in 2024, and has developed and approved an updated Plan including stretching top-line and bottom-line goals, for 2029

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.

10

Milestones

11

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

Masterbatches and Compounds for different applications

Business Areas	Business Areas	Business Areas	Business Areas	Business Areas	Business Areas	Business Areas
Agricultural films	BOPP Films	PEX Compounds for	PE Films	PEX Compounds for	Colors	Conductive Compounds
PE Films	PE Films	Pipes	Agricultural films	Pipes		Special Compounds
Flame Retardants	PP Films	BOPP Films	BOPP Films			Toll Compounds Colors
Colors	BOPE	110 Employees	33 Employees
Polycarbonate	120 Employees	43,400 MT Capacity	14,800 MT Capacity	24 Employees 23,800 MT Capacity	23 Employees 4,300MT Capacity	76 Employees
Pipes	24,500MT Capacity					16,200MT Capacity
170 Employees
26,300 MT Capacity		Business Areas	Business Areas
		Custom-made Compounds	Colors Liquid Colors		Business Areas Compounds and Filaments
22 Employees 220 Employees 10,000MT Capacity ~6,000MT Capacity						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.

19

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

4-6.2025 NIS Value Sales

Among our Customers – None of them > 5%

H1/2025 PERFORMANCE HIGHLIGHTS

H1/2025 Highlights

71MNIS

OPERATING PROFIT

EBITDA 103MNIS

Stable EBITDA under increased volatile Macro-economic environment

Consolidated P&L – H1 2025 vs. 2024
	M-ILS	Change
	2025	2024	2024
(Ton)	308	807	(0
Volume	55	55	9%)
Sales	,	,
Sales	690	680	1
	3	9	4%
Materials	410	413	(0
	7	5	7%)
Manufacture	122	109	11
Labor	5	5	9%
&
COST	533	523	2
OF	2	0	0%
SALES
GROSS PROFIT	157 1	158 0	(0 5%)
	22 8%	23 2%
Sale	54	51	6
Marketing	9	8	1%
&
General	37	32	12
Admin	0	9	4%
&
(income)	(5	4	(221
Other	7)	7	4%)
expenses
Profit	70	68	3
	9	5	4%
Operating	10 3%	10 1%
	102	102	0
	8	8	1%
EBITDA	14 9%	15 1%

Main Financial KPIs Development - MNIS

	2025		2024						2021	2020
	Q2	Q1	Q4	Q3	Q2	Q1	2024	2023	2022
Revenues	356 1	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	215 8	194 9	193 8	212 3	210 0	203 5	819 6	734 6	731 1	714 1	556 9
Manufacture & Labor	61 4	61 1	59 1	61 9	59 3	50 1	230 6	164 7	139 3	121 5	115 9
Of Sales Cost	277 2	256 0	253 0	274 2	269 3	253 6	1 050 1 ,	899 3	870 5	835 6	672 8
Profit Gross	78 9	78 2	62 6	83 4	81 4	76 5	303 9	223 8	192 7	192 8	173 9
%	22.2%	23.4%	19.8%	23.3%	23.2%	23.2%	22.4%	19.9%	18.1%	18.7%	20.5%
Sale Marketing &	27 7	27 3	27 4	29 2	27 5	24 2	108 4	82 5	77 6	66 1	60 7
General Admin &	19 0	18 0	19 6	19 4	17 3	15 6	72 0	57 9	46 0	42 9	37 4
Other (income) expenses	(5 8)	0 1	(0 0)	0 1	(0 3)	5 0	4 8	(0 6)	2 4	(1 4) `	0 0
Profit Operating	38 1	32 8	15 5	34 7	36 9	31 6	118 8	84 0	66 8	85 2	75 9
%	10.7%	9.8%	4.9%	9.7%	10.5%	9.6%	8.8%	7.5%	6.3%	8.3%	9.0%
(Income) Financial expenses	6 0	13 1	(7 2)	12 0	8 6	6 4	19 8	17 8	4 6	0 1	13 8
Taxes on Income	8 8	6 9	4 3	6 8	7 4	7 8	26 4	19 2	17 8	20 1	18 9
Profit Net	23 3	12 8	18 0	16 0	20 5	16 9	71 5	46 9	44 4	64 9	43 2
%	6.5%	3.8%	5.7%	4.5%	5.9%	5.1%	5.3%	4.2%	4.2%	6.3%	5.1%
EBITDA	54 1	48 7	30 7	51 3	52 8	50 0	184 7	129 9	104 5	116 6	103 1
%	15.2%	14.6%	9.7%	14.3%	15.1%	15.1%	13.6%	11.6%	9.8%	11.3%	12.2%
CAPEX	15 9	4 6	4 8	18 9	7 3	11 8	42 9	44 9	53 1	26 3	21 7

Stable EBITDA under increased volatile Macro-economic environment

Net Debt Decrease is mainly attributed to EBITDA and US\$ Exchange Rate Decline

Working together for the future of plastics. 28

Improving in Safety KPI, with only 1 LTI, 0 Severe LTI

OSHA = #LTA / 200KHours

Q2/2025 PERFORMANCE HIGHLIGHTS

Stable EBITDA under increased volatile Macro-economic environment

Consolidated P&L – Q2 2025 vs. 2024
	M-ILS	Change
	2025	2024	2024
(Ton)	28	27	2
Volume	331	528	9%
Sales	,	,
Sales	356	350	5%
	1	8	1
Materials	215	210	2
	8	0	8%
Manufacture	61	59	3
Labor	4	3	4%
&
COST	277	269	2
OF	2	3	9%
SALES
GROSS PROFIT	78 9	81 4	(3 1%)
	22 2%	23 2%
Sale	27	27	0
Marketing	7	5	5%
&
General	19	17	9
Admin	0	3	5%
&
(income)	(5	(0	(100
Other	8)	3)	0%)
expenses
Profit	38	36	3
	1	9	2%
Operating	10 7%	10 5%
	54	52	2
	1	8	5%
EBITDA	15 2%	15 1%

Quarterly Sales Development (MNIS)

Quarterly Operating Profit Development (MNIS)

Quarterly EBITDA Development (MNIS)

FCF (MNIS)

Working together for the future of plastics. 35

Dividend Distribution (MNIS)

*

UNAUDITED BENCHMARK

Market Trends - Public Companies in the Industry

Market Trends -		Public Companies in the Industry								Q2/2025 Q2/2024 vs YAG			YTD/2025 YTD/2024 vs YAG
		Q2/2025	Q2/2024	vs YAG	YTD/2025	YTD/2024	vs YAG	Kafrit Group	EBITDA (Million NIS)	5 4 15.2%	5 3 15.0%	2%	103 14.9%	103 15.1%	0%
Kafrit Group	Sales (Million NIS)	356	351	1%	690	681	1%		EBITDA before Impariment (Million\$)
	Sales and other operating revenues (Million\$)							Lyondell Basell	Total Company	7.9%	606 1,644 18.9%	-63%	1,261 2,689 8.2%	15.8%	-53%
Lyondell Basell	Total Company Advanced Polymer Solutions (APS)	7,658	8,678	-12%	15,335	16,982	-10%		Advanced Polymer Solutions (APS)	4 0	4 0	0%	8 6	7 5	15%
	Total Revenue (Million\$)								EBITDA (Million\$) Total Company	149	143	4%	294	286	3%
Avient	Total Company	867	850	2%	1,693	1,679	1%	Avient		17.2%	16.9%		17.3%	17.1%
	Color, Additives and Ink	539	542	-1%	1,058	1,057	0%		Color, Additives and Ink	113 20.9%	108 19.9%	4%	213 20.1%	205 19.4%	4%
	Sales (Million Euro)								EBITDA before special itmes (Million Euro)
BASF	Total Company	15,769	16,111	-2%	33,171	33,664	-1%		Total Company	1,475 1,563		-6%	3,653 4,218		-13%
	Materials	3,240	3,416	-5%	6,690	6,857	-2%	BASF	Materials	9.4% 408	9.7% 448	-9%	11.0% 877	12.5% 956	-8%
	Net Sales (Million\$)									12.6%	13.1%		13.1%	13.9%
DOW	Total Company	10,104	10,915	-7%	20,535	21,673	-5%		EBITDA (Million\$)
	Packaging and Special Plastics	5,025	5,515	-9%	10,335	11,110	-7%	DOW	Total Company	7.0%	703 1,501 13.8%	-53%	1,647 2,686 8.0%	12.4%	-39%
	Sales (Million Euro)								Packaging and Special Plastics (EBIT)	7 1	703	-90%		413 1,316	-69%
Covestro Chemours	Total Company	3,379	3,690	-8%	6,856	7,200	-5%			1.4%	12.7%		4.0%	11.8%
	Performance materials	1,618	1,834	-12%	3,295	3,523	-6%		EBITDA (Million Euro) Total Company	270	320	-16%	407	593	-31%
	Net Sales (Million\$)							Covestro		8.0%	8.7%		5.9%	8.2%
	Total Company	1,615	1,538	5%	2,983	2,900	3%		Performance materials	149	196	-24%	162	299	-46%
	Advanced Performance Materials	346	345	0%	640	648	-1%		Adjusted EBITDA (Million\$)	9.2%	10.7%		4.9%	8.5%
Cabot	Adjusted Sales (Million\$)	923	1,016	-9%	1,859	2,035	-9%		Total Company	253	207	22%	419	400	5%
								Chemours		15.7%	13.5%		14.0%	13.8%
Arkema	Adjusted Sales (Million Euro)	2,395	2,536	-6%	4,776	4,877	-2%		Advanced Performance Materials	5 0 14.5%	4 5 13.0%	11%	8 2 12.8%	7 5 11.6%	9%
								Cabot	Adjusted EBITDA (Million\$)	211	211	0%	417	405	3%
Reynolds Consumer P	Sales (Million \$)	938	914	3%	1,739	1,726	1%		Adjusted EBITDA (Million Euro)	22.9% 364	20.8% 451	-19%	22.4% 693	19.9% 801	-13%
	Sales (Million \$)							Arkema		15.2%	17.8%		14.5%	16.4%
	Total Company	1,967	1,976	0%	3,778	3,839	-2%	Reynolds Consumer P	Adjusted EBITDA (Million \$)	163	172	-5%	279	294	-5%
										17.4%	18.8%		16.0%	17.0%
Orbia	Netafim	288	284	1%	559	540	4%		EBITDA (Million \$) Total Company	300	334	-10%	498	587	-15%
	Polymer Solutions (Vestolit & Alphagary)	616	644	-4%	1,216	1,302	-7%			15.3%	16.9%		13.2%	15.3%
								Orbia	Netafim	4 0	3 9	3%	7 3	6 8	7%
										13.9%	13.7%	-26%	13.1%	12.6%	-30%
Sealed Air Corp.	Sales (Million \$)	1,335	1,345	-1%	2,607	2,674	-3%		Polymer Solutions (inc. Alphagary)	7 9 12.8%	107 16.6%		136 11.2%	193 14.8%
										293	286	2%	569	564	1%
Silgan	Sales (Million \$)	1,539	1,381	11%	3,005	2,698	11%	Sealed Air Corp.	Adjusted EBITDA (Million \$)	21.9%	21.2%		21.8%	21.1%
								Silgan	Operating Profit (Million \$)	168	142	18%	298	254	18%
										10.9%	10.3%		9.9%	9.4%

⁴³ Source: Financial Reports of Public Companies; Benchmark from Public Financial Reports (Unaudited)

Working together for the future of plastics.