Matrix IT Ltd. — Investor Presentation 2026

Mar 25, 2026

matrix

Investor Meeting

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Financial Statements as of December 31, 2025

The information contained in this Investors presentation constitutes a convenience translation. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law and represents the binding version and the only one having legal effect.

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DISCLAIMER

The presentation contains forecasts, estimates and plans of the Company regarding its operations and other information about future events and matters, which constitute forward-looking information, as defined in the Securities Law, 1968, and materialization thereof is uncertain and may be affected by factors that are unforeseeable or beyond the Company's control. Therefore, the Company is uncertain whether its forecasts and/or estimates and/or plans will be realized, in whole or in part, or whether they will be realized differently than expected, inter alia, due to factors beyond its control, changes in market conditions and the business and competition environment, as well as materialization of any of the Company's risk factors.

The presentation includes, inter alia, information from various publications as well as data received from external sources, and macroeconomic facts and figures, the contents of which have not been reviewed by the Company independently, including slides relating to analyst ratings, all as known by the Company at the time of preparation of the presentation. For the avoidance of doubt, we note that the Company does not undertake to update and/or change the information included in this presentation. This presentation was prepared as a summary and for convenience only, and is not intended to be in lieu of a review of the reports publicized by the Company, including its financial statements. The information contained in this presentation is subject to that stated in the Company's relevant reports.

This presentation should not be viewed as an offer or invitation to acquire the Company's securities. The information included in the presentation is not a recommendation or opinion to invest in the Company and is not in lieu of a potential investor's judgment.

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Agenda

Financial Statements 2025

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Ranit Zexer – CTO, Matrix

Major General (Res.) Nitzan Alon – Chairman of Matrix Defense

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Operation Roaring Lion

As of the report’s publication date, Matrix employs approximately 17,000 employees worldwide. Approximately 3,500 of them are overseas, of which 2,500 are in the US.

About 500 of the Company's employees in Israel are enlisted in reserve duty. Most of the Company's employees in Israel are working from home. As of this date, the impact of the war on the Company's results is not material.

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IT AWARDS

2025

Outstanding Vendor Award

מפגן כוח ב-IT Awards: זכויות רבות במיוחד ל- מהקרקס

36 לקוחות מטריקס קטפו פרסי הצטיינות • אות מנכ"ל מצטיין למוטי נוטמן • וגם - אות הספק המצטיין!

DailyMaily 23.02.26

matrix*

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IT AWARDS

2025

Excellence Award for 36 Matrix client projects

Among the winning projects:

Al chatbot for Ramat Gan residents | 'Shibbolet' system of the Cyber Directorate – population management during crisis | Data management system and integration for pharmacy, HR, equipment and infrastructure, hospitalization, and other processes at the Ministry of Health | Establishing a private cloud for the 'Beit B'Lev' network | Implementation of the Priority ERP system at Shikun & Binui Group and the IDF Disabled Veterans Organization | Payment initiation and open banking for vehicle purchases at Avis | Israel's new payment core at Masav | Oncological data transformation in personalized medicine at Hadassah | Establishing and implementing advanced browsing protection on a healthcare network | A revolution in the delivery room: a clinical decision support system for real-time prediction of caesarean surgery probability at Hadassah | End-to-end implementation of a monitoring and control system at Leumit | Self-service laboratory stations at Maccabi, and more...

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Summary of Q4

and the Period Ended December 31, 2025

2025

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January – December

2025

Continued growth to record performance across all financial metrics

Revenues +11.8% growth to a record of approximately NIS 6.2 billion – 15.4% growth after adjusting for the increase in revenues recognized on a net basis (*)

Gross profit +12.8% growth to a record of approximately NIS 940 million – with an improvement in its margin to 15.1%

Operating income +16% growth to a record of approximately NIS 522 million – with an improvement in its margin to 8.4%

Net income +14.6% growth to a record of approximately NIS 330 million – with an improvement in its margin to 5.3%

Net income attributable to shareholders +12.8% growth to a record of approximately NIS 307 million – at a margin of 4.9%

EBITDA +13.2% growth to a record of approximately NIS 721 million – with an improvement in its margin to 11.6%

Cash flows from operating activities +34.9% growth to a record of approximately NIS 835 million

(*) In 2025 revenues accounted for on a net basis continued to increase. This affects the Company's revenues, revenue growth rate and profit margin.

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Fourth Quarter 2025

Continued growth to record performance across all profitability and cash flow metrics

Revenues +16.4% growth to approximately NIS 1.6 billion

Gross profit +13.4% growth to a record of approximately NIS 248 million – at a margin of 15.5%

Operating income +15% growth to a record of approximately NIS 138 million – at a margin of 8.6%

Net income +20.5% growth to a record of approximately NIS 89 million – with an improvement in its margin to 5.6%

Net income attributable to shareholders +15.6% growth to a record of approximately NIS 81 million – at a margin of 5.1%

EBITDA +10.6% growth to a record of approximately NIS 187 million – at a margin of 11.7%

Cash flows from operating activities +69.1% growth to a record of approximately NIS 566 million

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Open recruitment positions at Matrix as of March 2026

Field	Details	Number of positions
Development	Programmers (309), Development Team Leaders, Architects, QA Testers	432
System, Infrastructure, Cloud and DevOps (Platform Engineering)	Support personnel, System and Cloud professionals, Communications and Infrastructure experts, DevOps engineers	272
Project/Product Management and Systems Analysts	Project Management, Product Management and Systems Analysts	206
Cyber and Information Security	SOC personnel, information security and cyber implementers, cyber defense and information security experts, cyber researchers	194
Data & AI	ML/AI professionals, various Data and BI roles	142
Security & Defense positions	Various positions requiring high security clearance for candidates with existing clearance or undergoing a new security clearance process	125
Core Systems	Priority / ERP / SAP / Salesforce / CRM Dynamics	91
Total: 1,462

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Financial Statements

31.12.2025

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Key P&L Highlights – FY 2025 compared to the corresponding period

Key results (NIS millions)

	FY 2025	FY 2024	% Growth
Revenues	6,239	5,580	11.8%
Gross profit	940	833	12.8%
SG&A	418	383	9%
Operating income	522	450	16%
Financial expenses, net	85	67	26.6%
Tax expenses	107	95	12.8%
Net income	330	288	14.6%
Net income attributable to shareholders	307	272	12.8%
EBITDA	721	637	13.2%
Gross profit margin	15.1%	14.9%
SG&A margin	6.7%	6.9%
Operating income margin	8.4%	8.1%
EBITDA margin	11.6%	11.4%
Net income margin	5.3%	5.2%

• 15.4% growth net of increase in revenues accounted for on a net basis
• 10.7% organic growth adjusted for increase in revenues accounted for on a net basis
• 11.2% organic growth in operating income

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Key P&L Highlights– Q4 2025 compared to the corresponding quarter

Key results (NIS millions)

	Q4 2025	Q4 2024	%
Revenues	1,600	1,374	16.4%
Gross profit	248	219	13.4%
SG&A	110	99	11.5%
Operating income	138	120	15%
Financial expenses, net	20	19	4.1%
Tax expenses	29	27	7.7%
Net income	89	74	20.5%
Net income attributable to shareholders	81	70	15.6%
EBITDA	187	169	10.6%
Gross profit margin	15.5%	15.9%
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SG&A margin	6.9%	7.2%
Operating income margin	8.6%	8.7%
EBITDA margin	11.7%	12.3%
Net income margin	5.6%	5.4%

12.2% organic revenue growth

10.5% organic profit growth

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Revenue brakdown by customer sectors

• ☺ Hi-Tech 18%
• 🔋 Government & Public Sector 17%
• 🚴 Financial Institutions 17%
• 🚲 Healthcare & Transportation 17%
• 🚫 Aerospace & Defense 12%
• 🚶 Industry, Communications & Retail 12%
• 🚫 Other 7%

Based on revenues for 2025

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FY 2025 Summary

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Ongoing improvement in financial results over time. Consistent growth to record revenues and profits (NIS millions)

Revenues (*)

Gross profit

Operating income (**)

() Adjusted for the increase in revenues recognized on a net basis, revenue growth was 15.4% (*) In 2022 – excluding profit from the realization of an investment in a subsidiary (NIS 150 million)

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FY 2025 Summary

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Ongoing improvement in financial results over time. Consistent growth to record revenues and profits (NIS millions)

EBITDA

(*) In 2022 – excluding profit from the realization of an investment in a subsidiary (NIS 150 million), net of tax (approximately NIS 121 million)

Net income (*)

Net income to shareholders(*)

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Q4 2025 Summary

matrix

Ongoing improvement in financial results over time. Consistent growth to record profits (NIS millions)

(*) Revenues

Gross profit

Operating income

(*) The effect of adjusting for the increase in revenues recognized on a net basis during the quarter was negligible

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Q4 2025 Summary

matrix

Ongoing improvement in financial results over time. Consistent growth to record profits (NIS millions)

EBITDA

Net income

Net income to shareholders

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Israeli Market

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Operating Segments in Israel

Key financial results (NIS millions)

Q4 2025

FY 2025

(*) Including immaterial operations in Europe

14.5% growth adjusted for growth in revenues accounted for on a net basis

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Operating Segments in Israel – 2025

(NIS thousands)

	Revenues			Operating income
	2025	2024	%	2025	2024	%
IT Solutions and Services, Consulting, and Management in Israel	3,821,242	3,337,267	14.5%	291,476	250,113	16.5%
Profit margin (%)				7.6%	7.5%

• High double-digit growth (primarily organic) driven by increased activity in DATA & AI, digital, and core systems.
• Continued growth in operations with the defense sector (including G2G transactions) and in operations with the financial sector.
• Mega projects in the field of IT and engineering – providing growth and high visibility over time.
• First-time consolidation of Gav Systems also contributed to the segment’s results.

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Operating Segments in Israel – 2025

(NIS thousands)

	Revenues			Operating income
	2025	2024	%	2025	2024	%
IT Solutions and Services, Consulting, and Management in Israel	3,821,242	3,337,267	14.5%	291,476	250,113	16.5%
Profit margin (%)				7.6%	7.5%
Cloud and Computing Infrastructures	1,645,349	1,515,931	8.5%	125,813	106,405	18.2%
Profit margin (%)				7.6%	7%

• Growth in the volume, driven by marketing and integration of computing systems, and by marketing implementation and support of advanced technological solutions.
• Continued increase in the volume of EDP cloud transactions, whose revenues are accounted for on a net basis – multi-year engagements that contribute to high profits visibility over time.
• A favorable mix of higher-margin transactions drove profitability growth, despite the negative impact of USD depreciation
• Segment results were also positively affected by the first-time consolidation of Ortec.

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Operating Segments in Israel – 2025

(NIS thousands)

	Revenues			Operating income
	2025	2024	%	2025	2024	%
IT Solutions and Services, Consulting, and Management in Israel	3,821,242	3,337,267	14.5%	291,476	250,113	16.5%
Profit margin (%)				7.6%	7.5%
Cloud and Computing Infrastructures	1,645,349	1,515,931	8.5%	125,813	106,405	18.2%
Profit margin (%)				7.6%	7%
Marketing and Support of Software Products	440,382	456,765	(3.6%)	55,107	45,364	21.5%
Profit margin (%)				12.5%	9.9%

■ Accelerated customer demand for software and AI solutions (including AI software products and communication equipment), as well as cyber security, digital transformation, and cloud solutions.
■ Revenue decline alongside a sharp increase in operating income and profit margin, primarily driven by the transaction mix.

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US Market

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IT Solutions and Services in the US

2025 (NIS thousands)

	Revenues			Operating income
	2025	2024	%	2025	2024	%
Segmental results in USD	132,864	124,588	6.6%	20,097	18,073	11.2%
Profit margin (%)				15.1%	14.5%
Segmental results NIS	458,646	460,939	(0.5%)	69,376	66,865	3.8%
Profit margin (%)				15.1%	14.5%

• Continued strong growth in activity volumes, driven by the GRC activities in the financial sector, Data & AI and the gradual onboarding of new, higher-margin projects.
• The impact of the first-time consolidation of Alacer’s results was positive but immaterial.
• Results in NIS were materially impacted by USD depreciation compared to the the comparative period

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IT Solutions and Services in the US

Q4 2025 (NIS thousands)

	Revenues			Operating income
	2025 Q4	2024 Q4	%	2025 Q4	2024 Q4	%
Segmental results in USD	35,692	30,357	17.4%	4,968	4,449	11.5%
Profit margin (%)				13.9%	14.7%
Segmental results in NIS	116,699	112,350	3.9%	16,136	16,466	(2%)
Profit margin (%)				13.8%	14.7%

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Breakdown of Contribution to Revenues and Profit

By Operating Segments – FY 2025

• IT Solutions and Services in Israel
• Cloud and Computing Infrastructures
• IT Solutions and Services in the US
• Software Products

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Financial expenses

Financial expenses, net (NIS thousands)

	Q4 2025	Q4 2024		1-12 2025	1-12 2024
Interest, commissions, and other (net)	6,180	6,088	92	24,927	25,442	(515)
FX differences	6,689	4,598	2,091	23,090	14,321	8,769
Accounting financial expenses	7,229	8,612	(1,383)	36,674	27,109	9,565
Total financial expenses (net)	20,098	19,298	800	84,691	66,872	17,819

FY 2025 – The increase in financial expenses in 2025 is mainly due to an increase in non-cash accounting expenses (mainly due to Put options granted to minority shareholders in subsidiaries), as well as to FX differences resulting from the depreciation of the USD/ILS exchange rate (about 12.5% in the period).
Q4 2025 – The increase in financial expenses in the fourth quarter is mainly attributable to FX differences (about 3.5% in the quarter), which were partially offset by a decrease in accounting financial expenses.

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Breakdown of Financial Expenses

(NIS millions)

Despite the changes in accounting expenses and FX-difference expenses, cash interest expenses remain stable

2024				2025
Q1
31.3.24
✓	Q2
30.6.24	Q3
30.9.24
✓	Q4
31.12.24
✓	Q1
31.3.25
✓	Q2
30.6.25
✓	Q3
30.9.25
✓	Q4
31.12.25
✓
16.6
8.9
7.7	14.8
9.0
5.8	16.1
10.2
5.9	19.3
13.2
6.1	19.4
13.0
6.4	25.4
19.2
6.2	19.8
13.7
6.1	20.1
13.9
6.2

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Accounting financial expenses and FX differences

Interest expenses (net) and commissions

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Financial Indexes

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Financial Indexes

(NIS millions)

	31.12.25	31.12.24
Cash and cash equivalents	903	668
Unutilized credit facilities*	1,235	1,229
Total liquid assets	2,138	1,897

• Of which, NIS 300 million are committed credit facilities
  Aa3 credit rating from Midroog (Moody's) (confirmed – March 2025)

Cash flows from operating activities

Increase of about 35% in cash flows from operating activities to a record of approximately NIS 835 million

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Financial Indexes

(NIS millions)

Equity

Commercial Securities due by February 2030

Loans from financial institutions

Bonds Series B

	31.12.25	31.12.24
Equity	1,215	1,144
% of total balance sheet	26.4%	25.5%
Gross financial debt	753	785.1
financial net debt (net cash)	(149.9)	116.6
Current ratio	1.1	1.1
Financial net debt (net cash) to balance sheet ratio	(3.3%)	2.6%
Financial net debt (net cash) to EBITDA ratio	(0.26)	0.23

On February 4, 2026, the Company issued convertible Bonds (Series 2) (for a period of 5 years, at an annual interest rate of 0.5%) in an amount of approximately NIS 300 million. Most of the proceeds from the issuance were used to repay higher-cost financial debt at Magic.

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Backlog

(NIS millions)

	Backlog, December 31, 2025		Backlog, December 31, 2024
Backlog for the upcoming year	5,479		4,968
% change	10.3%
Beyond the current year	2,014		2,061
Total backlog	7,493		7,029
% change	6.6%

• For details regarding the Company's assumptions in the calculation of the backlog, see Section 8 of Chapter A (Description of the Corporation's Business) in the 2025 Annual Report

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Backlog – by Operating Segments

(NIS millions)

	Expected Revenue Recognition Period	Backlog as of December 31, 2025	Backlog as of December 31, 2024	Rate of Change
Consulting, and Management in Israel	For the upcoming year	3,564	3,134	13.7%
	Beyond the current year	1,647	1,747
	Total Backlog	5,211	4,881	6.8%
IT Solutions and Services in the US	For the upcoming year	418	363	15%
	Beyond the current year	21	10
	Total Backlog	439	373	17.4%
Marketing and Support of Software Products	For the upcoming year	333	323	2.9%
	Beyond the current year	108	83
	Total Backlog	441	406	8.6%
Cloud and Computing Infrastructures	For the upcoming year	1,165	1,147	1.6%
	Beyond the current year	237	222
	Total Backlog	1,402	1,369	2.4%

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Dividend

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Matrix maintains its regular dividend policy:

Distribution of up to 75% of profits to the Company's shareholders

Dividend declared for Q4 2025

Representing 75% of Matrix's and Magic's profit for Q4 2025

73.1 NIS million
0.79 NIS per share

Dividends distributed in the last 5 years – NIS 1.011 billion

Dividends distributed in the last 10 years – NIS 1.525 billion

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Company Merger Transaction

magic®

• matrix®

36

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COMPILATION OF THE MERGER TRANSACTION

MAPC

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Completion of the Merger Transaction

• On February 24, 2026, the merger transaction was completed after all conditions precedent were fulfilled
• Accordingly, Matrix acquired the entire share capital of Magic (by way of a reverse triangular merger), in consideration for the allocation of Matrix shares to Magic's shareholders. Magic's shares were delisted from trading on NASDAQ and the Tel Aviv Stock Exchange.
• Magic became a private company wholly owned by Matrix.

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The Merger Transaction

matrix + magic

©1bn EBITDA

6,000+ Clients

©8.4bn Annual revenue 22% Total International 17% USA

17,000+ Employees

14 Proprietary Software Systems and Solutions

50+ Countries International Presence

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Pro-Forma Financial Information (Unaudited) – Consolidated Results (Matrix + Magic) for 2024–2025 (NIS millions)

	Ft 2025	Ft 2024	% Growth
Revenues	8,387	7,602	10.3%
Cost of revenues	6,860	6,182	11%
Gross profit	1,527	1,420	7.5%
Gross profit margin (%)	18.2%	18.7%
R&D expenses	45	49	(9.4%)
Selling and marketing expenses	385	352	9.3%
General and administrative expenses	348	342	1.8%
Operating income	749	677	10.8%
Operating income margin (%)	8.9%	8.9%
Financial expenses	98	82	18.5%
Income before taxes	652	594	9.7%
Tax expenses	153	137	11.6%
The Company's share in profits (losses) of associates	1	1
Net income	498	456	9.2%
Net income margin (%)	5.9%	6%
Net income attributable to Equity holders of the Company	444	412	7.7%
Non-controlling interests	54	44	23.7%
EBITDA	1,022	937	9.1%
EBITDA margin (%)	12.2%	12.3%

Key assumptions and adjustments to the pro-forma information:

• The results are adjusted to exclude costs of ~NIS 20 m recognized at Magic in connection with the merger transaction (under G&A expenses), including in respect of adjustments to accounting policies and estimates to Matrix's policy
• The results are after adjustments of accounting policy in the treatment of PUT options for minority holders in subsidiaries
• Translation of Magic’s results into NIS is based on the average exchange rate for the period (Reflecting a decrease of approximately 6.7% compared to the prior year).
• Profit attributable to shareholders is presented as if Magic had always been held in full (100%) by Matrix
• The data presented is unaudited.

magic

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The Merger Transaction

• Positioning Matrix among the 10 largest public IT service companies in the world (1)
• A significant leap for Matrix in international expansion
• A technological force multiplier in the fields of ERP, Cyber, Cloud, Data, Digital, and AI
• Strengthening operations in the defense sector, crossing the revenue threshold of approximately NIS 1 billion per year
• Expanding Matrix's service and solutions portfolio to all leading sectors: Aerospace & Defense, Public Sector, Financial institutions, High-Tech, Healthcare
• Expanding the portfolio of proprietary IP solutions with high profitability and high Stickiness level
• Improvement in profit margins and Capital structure
• A unique transaction – no financing costs and no accounting M&A amortizations (As Pooling)
• Integration of an excellent and experienced management team into the Company

(1) Based on Market Cap, by Jefferies

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matrix FORWARD

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International growth

– the aggregate annual revenue run-rate from Global markets totaled ~USD 500 million (of which a small portion – ~USD 45 million – relates to Magic’s development tools). Matrix’s current positioning in the international market, and in the US in particular, reinforced by Magic’s subsidiaries’ assets in the areas of cloud, cyber, ICT infrastructure, and proprietary software products, enables accelerated growth through competitive synergies among our service and product lines. In addition, we intend to accelerate our acquisition pace overseas, mainly in the US, and anchor our organic growth on strengthening services to existing Fortune 500 clients.

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matrix FORWARD

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A surge in demand for services and products in the areas of cyber, cloud, DATA and AI both in the defense and commercial sectors.

We are targeting continued organic growth at Matrix and its acquired companies, which serve as force multipliers for our activities in the $\mathrm{A}^{1}\mathrm{D}^{2}\mathrm{C}^{3}$ lines of business and around proprietary software products (company-owned), as well as in the fields of embedded systems development, communications infrastructure, data centers and Command and Control systems.

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matrix FORWARD

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We aim to maintain the aggregate operating income margin at a level of 9% and above, inter alia, due to operational improvements resulting from the merger and the higher profitability in international operations.

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matrix FORWARD

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Defense Division – matrix Defense, led by Major General Nitzan Alon, is among the leading defense companies in Israel, with over NIS 1 billion in revenues and more than 1,800 professionals, including 2 Israel Defense Prize laureates.

In the defense sector, Matrix enjoys sustained double-digit growth, driven by deep and broad technological expertise in cyber and AI, and strong demand for unique projects and solutions in the techno-operational and systems engineering domain.

Our subsidiary Commit (80% controlled), which joined through the Magic transaction, is on an equally impressive growth trajectory, adding a force multiplier to our defense division in complementary areas such as communications, ICT, C2, and real-time systems (Embedded – hardware/software).

We intend to accelerate acquisitions in the defense sector, where we see significant growth potential.

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Matrix's Defense Sector

General (Res.) Nitzan Alon, Active Chairman – Matrix Defense

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Fast Facts – Matrix’s Defense Sector

12% of total revenue
~NIS 1 billion
in revenue in 2025

Status
Defense industry directly guided by MALMAB (Defense Ministry R&D administration)

Human capital: ~1,800+ employees
Including hundreds of strategic advisors in performance research and intelligence.
Graduates of security units, academics and researchers.

Core activities: Advanced AI solutions, C2 (command and control) systems development, operational knowledge management, and cyber for the defense sector.

Hundreds of successful flagship strategic projects for defense clients in Israel and worldwide

History: 2003,
SIBAM Ltd., led by Brig. Gen. (ret.) Dr. Aviam Sela, was acquired by Matrix

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Ecosystem and synergy – end-to-end solution

Techno-operational strategic consulting

Cyber	Cloud	R&D	G2G Projects	Data & AI
Education & Implementation	Joint management	Consulting, Research & Development
Communications labs, edge devices and tactical communications		Software products, hardware and communications equipment – Cloud + On Prem

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Core Offerings

AI & Data

AI Applications for Defense and Security

• NLP including OCR
• GIS – including automated mapping
• Audio and SIGINT
• Video and imagery
• Supervised learning + unsupervised learning
• Custom and embedded hardware
• Data center applications (DCDL)

Cyber - Cyber Defense and Intelligence

R&D - Systems Development

Strategic Advantage for the Defense Industry

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Core Offerings

AI - AI Applications for Defense and Security

Cyber Cyber Defense and Intelligence

• Security research
• Proof of concept sales (POCs)
• Embedded devices
• Mobile platforms
• Network protocols
• Holistic threat analysis systems
• Attribution system
• Cyber threat collaboration system
• Custom cyber systems

R&D - Systems Development

Strategic Advantage for the Defense Industry

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Core Offerings

AI - AI Applications for Defense and Security

Cyber - Cyber Defense and Intelligence

R&D Systems Development

• G2G projects
• Systems engineering
• Custom projects
• Cyber and intelligence systems
• Oversight and control
• Simulation and analytics systems
• Cloud-based solutions
• Artificial intelligence and big data

Strategic Advantage for the Defense Industry

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Core Offerings

AI - AI Applications for Defense and Security

Cyber - Cyber Defense and Intelligence

R&D - Systems Development

Strategic Advantage for the Defense Industry

• Strategic planning
• Operational research
• Systems analysis
• Defense industry research
• Technology assessment
• Competitive intelligence
• Business plan development

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Strategic projects worldwide

Defense, Homeland Security and G2G

Cyber and national security

Innovation and R&D projects

Complex cloud and ICT projects – Information and Communication Technology

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Systems development and flagship projects

High-performance drone systems

Autonomous robotics systems

AI systems for video, image and sensor analysis

Air defense systems and aeronautics

R&D of command and control (C2) systems

R&D of embedded systems

G2G

AI R&D – dozens of projects

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Systems development and flagship projects

Hardware and testing

Simulation and emulation

Sensory data, large-scale sensor data processing

Edge devices and AI

Mega Data projects

Tactical communications

End-to-end ICT and C4I systems

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Operational C2 (command and control) solutions, collaboration and IoT

Connect

Expand

Discover

Route

Wireless

C2, voice, video, speech, chat, IoT and artificial intelligence.

Operations management, investigation and collaboration – combat-proven

Original Equipment Manufacturer (OEM) for Israel's defense and homeland security industries.

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Among our clients

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matrix FORWARD

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The deep synergy between Matrix across all its divisions, with commit creates a multidimensional techno-defense systems house, combining the power of a formidable operational organization with the agility of a technological “commando unit.”

Our unique value proposition provides an End-to-End solution – from defining the response to the operational need, through infrastructure, communications, hardware and software for edge systems.

Matrix thus establishes its position as a strategic partner to the security establishment and defense industries in Israel and around the world

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NIS 1 billion in growing revenues – for the defense sector

High-tech 18%
Government & Public Sector 17%
Financial Institutions 17%
Health & Transportation 17%
Aerospace & Defense 12%
Industry, Communications & Retail 12%
Other 7%

Based on revenues for 2025

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Thank You

matrix

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matrix

“Luck is what happens when preparation meets opportunity”

The Roman philosopher Seneca

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The Jevons Paradox

matrix

Efficiency lowers the relative cost of using a resource.

When a resource becomes cheaper and more efficient, its use expands and creates demand that exceeds the original savings from the efficiency gains.

Efficiency also makes technology relevant in new domains.

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More Fuel Efficient

Direct effect: less fuel per mile

More Energy Demand

AI-Native Teams

Direct effect: higher productivity

More Engineers Needed

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matrix FORWARD

matrix

The significant changes in the world of AI provide a tremendous opportunity for Matrix.

We identify significant growth potential in our current areas of activity – infrastructure, integration, defense, software products, cyber defense, FinOps, DATA, professional training, and more.

The rapid pace of AI tool advancement will, in our assessment, lead to a shift in the mix of professions and the creation of new professions.

Thanks to high efficiency in software development, AI will, in our assessment, lead to growth in the number and scope of projects in the future.

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Gartner

The We Serve

Our Solutions

Conferences

Webinar

AI Hub

New To Role

Forget Layoffs: AI Is Coming for Inefficiency, Not People

While headcount reductions specifically attributable to AI are elusive, the technology is bringing real productivity gains for teams that use it effectively.

By Randeep Rathindran | December 9, 2025

Put more effort into transforming jobs than eliminating them

AI investments come with lofty management expectations for productivity gains that could eventually lead to headcount reductions. Yet current evidence suggests those expectations are overblown.

While teams that deploy AI achieve time savings equivalent to five hours per person per week, most of this time saving tends to be spent on non-value-added tasks, as shown in the figure. Also, the productivity gains from AI are no higher than those captured by teams that implement other technologies. Nor are the productivity gains enough to drive net job reductions.

These factors and others suggest it's time to move the AI-productivity conversation away from headcount reduction and toward business value.

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matrix

Luck is What Happens When

Preparation Meets Opportunity

Ranit Zexer – Matrix CTO

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matrix

Artificial Intelligence, Human Panic

And Why Now Is Matrix's Biggest Opportunity

Ranit Zexer, Matrix CTO

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matrix

So what actually happened?

What was said?	Market Sentiments	The Ground Truth
DeepSeek is 10x cheaper than GPT-4	Sell Nvidia and Microsoft shares!!!	Nvidia Reported record-breaking profits in Q1 2025. And its shares rose 25% from pre-crisis levels and 45% from the crisis peak
"Claude writes 90% of its own code"	Developers are obsolete!!!	Big Tech hiring freeze, while business sectors increase demand for technical roles (e.g., 16% growth in the financial sector in 2025*)
Anthropic announced that Claude Code can analyze and automatically convert COBOL code	COBOL is dead, IBM is doomed!!!	IBM is at a 20-year Mainframe revenue peak, and Claude Code is expected to be an ecosystem catalyst– not its killer
A hypothetical post by Cintrini** outlined a scenario (not a forecast) in which, by 2028, AI impacts white-collar jobs – leading to 10% unemployment and an economic crisis	System Integrators = white collar
System Integrators are also Doomed!!!	Let’s talk about this...

• According to Robert Half, the world’s largest specialized staffing firm, operating since 1948. Their analysis is based on 1.5 million job openings from 9,000 job boards
  ** Cintrini Research – a small, unregulated analyst firm

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matrix

And the reality... is apparently different...

Recognize the pressure and reframe your AI-driven headcount expectations

Executive leaders are under intense pressure to deliver cost savings, often through headcount reduction... AI is frequently seen as the lever to make these cuts painless. The reality? AI productivity gains are rarely sufficient to enable frictionless reductions without risk.

Gartner predicts that, through 2028, AI investments can lead to a net headcount increase within an enterprise - potentially as high as 30% in some business units, but typically under 10% for knowledge worker roles as a whole, driven by decreases in certain jobs and increases in others. That’s because realizing value from everyday AI has little impact on headcount, while disruptive, game-changing AI that upends the business is often more likely to create new types of roles.

https://www.gartner.com/en/articles/ai-caused-headcount-change

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matrix

And this is not the first time this happens

We’ve seen this movie before:

• The technology is real → The timing is exaggerated → The market prices in panic → The market resets, and those who understand the shift lead it ⚫

The event	The big announcement	Crisis	Reality after 5 years
Dot-com 2000	“The Internet will kill retail”	Nasdaq -78%	Amazon, eBay dominated – but it took 7 years
Cloud 2008-12	Server rooms will close within a year	Hardware companies collapsed	The cloud and hardware – both are thriving

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matrix

Where Does Matrix Fit in an AI-Driven World?

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matrix

Maslow's AI Pyramid

Gemini
Claude

ChatGPT
Perplexity
Copilot

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matrix

Maslow's AI Pyramid

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matrix

Driving real impact requires a full-stack approach

Responsible AI

• Compliance
• Interpretability & Explainability
• Bias & Fairness
• Safety
• Privacy
• Security

Engagement

• Marketing
• Contact Center
• Conversational
• Autonomous Agents
• Personalization
• ...

Business Applications

• Healthcare
• Finance
• Hi-Tech
• Retail
• Manufacturing
• ...

AI Models

• AI Training
• Build Models
• Validate Models
• Deliver Models
• AI OPs

Data

• Data Curation
• Data Ingestion
• Synthetic / De-Identified Data
• Data Storage
• Data Delivery

Infrastructure

• aws
• Public Cloud
• PwMSA
• SLiTE
• SSTS
• On-Prem

Reskilling & Upskilling

• Upskilling non-technical employees
• Reskilling nontechnical employees
• Upskilling development teams
• Train new related technical AI skills

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matrix

Against Maslow's AI Pyramid: Where are Matrix's opportunities?

AI Enablers

Client opportunities

• Legacy Modernization
• AI Ready Data
• Cloud and Hardware Infrastructure
• New Business Process Design
• AI Development
• The client's opportunity = our opportunity

Client risks

• AI Compliance
• Privacy
• Cyber and AI Threats
• AI Governance & Safety
• The AI Talent /Skills Gap
• The client's risk = our opportunity

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matrix

And zooming out to the full picture

| ### Value-added activities

Efficiency = increased profitability | ### AI Enablers

Growth | ### Activity domains unrelated to IT

Efficiency = increased profitability |
| --- | --- | --- |

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BCG analyzed the threat vs. opportunity for technology services in the global market

We conducted a similar analysis based on Matrix's revenue map

EXHIBIT 1

Agentic AI's Impact on Tech Services Varies by Segment but the Net Effect Is Expansion

Sources: Gartner; expert interviews; BCG analysis.

BCG's analysis shows that agentic AI will ultimately expand the total addressable market for technology services—unlocking up to $200 billion in net new value pools in the next five years.

https://www.bcg.com/publications/2026/the-200-billion-dollar-ai-opportunity-in-tech-services

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Heat map by threats and opportunities

		AI & Data (12%)		Engineering & Non-it (7%)		Integration Projects (6%)
PS and Offshore (26%)				Cyber (10%)		Infra Software (5%)		BPO & Call Centers & BPO (4%)
							3rd Party App (2%)
Cloud (12%)		Hardware & Infra (9%)				ERP & Core App (5%)		Magic Low Code (2%)
Risk ☐ Low Risk ☐ Stable ☐ Opportunity ☐ High Opportunity ☐

Internet Data

One Paper LLC Technology Research

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Heat map by threats and opportunities

| FI
21% | HC
15% | TEC
14% | TEC
51% | FI
18% | DEF
12% | IND
49% | TRN
17% | FI
39% | DEF
39% |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| HC
7% | GOV
6% | TRN
10% | GOV
15% | DEF
10% | TEC
8% | GOV
8% | TEC
5% | IND
4% | TRN
6% |
| GOV
21% | IND
4% | TRN
6% |
| AI & Data (12%) | Engineering & Non-IT (7%) | Integration Projects (6%) |
| IND
18% | DEF
7% | TRN
4% | IND
29% | FI
20% | DEF
10% | TEC
39% | IND
15% | DEF
14% | IND
46% | GOV
13% |
| TEC
20% | GOV
13% | HC
5% | TRN
9% | FI
21% | GOV
5% | HC
4% | FI
25% | TEC
4% |
| PS and Offshore (26%) | Cyber (10%) | Intra Software (5%) | BPO & Call Centers (4%) |
| TEC
58% | IND
18% | GOV
8% | GOV
26% | IND
18% | HC
9% | FI
7% | IND
39% | TRN
17% | FI
15% | IND
34% | TEC
15% | IND
51% |
| HC
7% | TEC
25% | DEF
10% | TRN
9% | HC
19% | GOV
7% | TEC
6% | FI
14% | TRN
9% | GOV
5% | TEC
29% | HI
12% |
| FI
9% | HE
12% | DEF
10% | HE
10% | GOV
4% | HE
10% |
| Cloud (12%) | Hardware & Infra (9%) | ERP & Core App (5%) | 3rd Party App (2%) | Maple
Low-Cone (2%) |
| Finance | GOVernment | INDustry & Services | HI-TECH | DEFense | TRN Transportation | HC Healthcare |

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matrix

From a high-level view: opportunities vs. risks

• Major opportunity
• Opportunity
• Unchanged
• Minor threat
• Threat

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And what is Matrix’s role in this new world?

But what will happen to all your developers? And your testers?

matrix

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matrix

90% of Claude’s code is developed by Claude – but guided by whom?

Even when the machine generates 100% of the code, we haven’t saved 100% of the developer’s work – far from it

The developer’s role is changing – but not disappearing

Code Generation ≠ Software Engineering.

You need to define what should be built → Product Manager

You need to ensure it is built correctly from an engineering perspective → Development Engineer

Worth quoting:

The Developer Codes only 22% of its Time

Forrester Research

Matrix develops new capabilities and offers new ways to create value

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The 70% Paradox

matrix

Forgive me, I'm going to dig in a bit more on my experiences with Claude Code, for two reasons: partly because I think we are truly living through an important chapter in history and I want to document my own small corner of it, and second, because this week I personally experienced the flip side of vibe coding. I've been such an enthusiastic ambassador for "everyone must try this," so it seems only fair to share what happens when you try it without knowing what you're doing. So here it goes:

The problem begins with the gap. The gap between the sense of potency – the feeling of omnipotence that working with Claude Code (and its equivalents; I'm not advertising Claude Code, it's just what I use) gives you – and reality. In reality, I have absolutely no idea what I'm doing, what Claude is doing, and above all whether it's good or not. I can track the features it's building, check whether they work properly, etc. That's the easy part.

What I truly don't know is what I don't know that I don't know. And that's a problem. Because I genuinely don't know that.

Shaul Amsterdamski

LLMs can produce very roughly like 70% of a working application very quickly, but they tend to struggle with that last 30%

Addy Osmani, Developer Experience Leader at Google Chrome

AI provides democratization of development: anyone can build a "coffee map of Jerusalem" app

But to develop an application within an organization that works – and works well – you need time, professionalism and deep understanding

Matrix handles (also) the 30%

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matrix

Nothing beats a syste, that actually works

There is a difference between AI in a Greenfield environment and AI in a Brownfield environment.

In Brownfield, you need to understand business and human context.

And most of the systems operating in the world today are Brownfield.

The productivity boost in brownfield scenarios is much smaller – some engineers estimate only a 10 – 30% speed-up at best in these cases, and sometimes a slowdown if the AI suggestions lead you astray

Enrico Papalini

Matrix bridges the gap by accelerating Brownfield operations and integrating AI into legacy environments.

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matrix

Would you trust 'AliExpress software'?

"It's so cheap and fast that when it doesn't work, we throw away what was built and start over"

R&D Manager at a startup company

Would you agree to let Ali Express software manage your money?

Would you agree to let Ali Express software fly the plane you're on?

In enterprise environments, off-the-shelf solutions (e.g., AliExpress) are not sufficient for certain tasks

Code quality rose by 3.4% with AI tools, but projects that relied too much on AI saw 41% more bugs and a 7.2% drop in system stability.

MIT Technology Review: AI coding is now everywhere. But not everyone is convinced

As AI accelerates development, the need for integration, engineering, oversight, and risk management increases – driving demand for Matrix

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The "Autonomous Vehicle Trap":
Are we overestimating AI independence?
matrix

The legal imperative: Human in the loop (HITL)

According to strategic forecasts from Gartner and other analysts, we expect to see over 2,000 "Death by AI" or serious injury claims filed worldwide by the end of this year

AkatisSecurity

As AI makes more autonomous decisions, greater investment is required to integrate people with the necessary capabilities, expertise, and experience – which Matrix provides.

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The Junioirs Crisis

matrix

Juniors have always been the pipeline: junior today, senior tomorrow.

If the pipeline closes, there are no future seniors.

Worth quoting:

IT and software engineering jobs—employment has declined 6% for workers aged 22-25, while it's increased 9% for workers aged 35-49. Hiring is happening, just not for people my age.

Stanford Digital Economy Study

The combination of integration activities and the training division enables Matrix to develop an AI-Ready Juniors model for Enterprise

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matrix

A few closing thoughts...

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The Sameness Trap

When AI gives everyone the same tools, efficiency becomes a commodity. Those who merely react to AI will look like everyone else.

Differentiation will not come from the tool, but from the question you ask before you open it.

Based on Dan Diasio | Global AI Leader & Americas CTO, EY Consulting | LinkedIn, FEB 2026

In a world where everyone has access to the same AI, competitive advantage doesn't come from the technology itself, but from how it is integrated into the core of the organization – and here too, Matrix has a role.

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Matrix

Martech Law: technologies change exponentially, organizations logarithmically

AI increases the gap between technology and organizations

This gap is Matrix's primary growth engine

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we close with a reminder of the Jevons Paradox

matrix

AI is not shrinking the IT services market; it is expanding it.

Growing demand for software and digital transformation is a growth engine for Matrix's Enterprise services

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From panic to reality

AI doesn’t replace people. It changes how they work
And SI companies like Matrix not only assist with the required change, but also enable taking the remarkable capabilities of AI and turning them into business solutions that move the needle for organizations

Back to the panic:
A provocative campaign by the startup Artisan AI, launched in 2024

matrix

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matrix

AI reflects a structural shift in the IT market

It lowers point-specific development barriers but does not eliminate systemic complexity

AI expands the scope of digital initiatives. It also increases the need for integration, governance, and ongoing operations.

It shifts value from commoditized services to areas rich in regulation, data and infrastructure

AI generates more software.

More software generates more complexity.

Complexity generates greater need for technology services.

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matrix

Behind the scenes:

Was doesnused in preparing this presentation?

For Sure!

But we led the discussion – ChatGPT, Claude and Gemini conducted a brainstorming session with us (and we thank them from the bottom of our hearts...)

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Summary

Record results

Financial Statements 2025

matrix

Force multiplier

magic

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Thank you for listening!

matrix