Max Stock Ltd.

Investor Presentation • Nov 30, 2023

Max Stock Q3'23 Earnings Conference Call

November 30, 2023

Disclaimer

This presentation, any question and answer session and any written or oral material discussed or distributed during the meeting to present this document or otherwise in connection with it (this "Presentation") is solely for the purpose of demonstration of information included in the financial statements of MAX Stock Ltd. ("MAX" or "the Company") as of September 30th , 2023. This Presentation is not intended for distribution to, or use by any person or entity in, any jurisdiction or country where such distribution or use would be contrary to local law or regulation. This Presentation was prepared solely based on information obtained from MAX and public sources (including data obtained by MAX from industry publications and surveys) on or prior to the date hereof and has not been independently verified. MAX may not have access to the facts and assumptions underlying the numerical data, market data and other information included in such surveys . This Presentation only contains summary information and no representation or warranty, express or implied, is or will be made in relation to and no reliance should be placed on the fairness, accuracy, correctness or completeness of the information or opinions contained in this Presentation. The presentation only contains summary information, and does not replace the full disclosure contained in the Q3 2023 Financial Statements and in 2022 annual report of the Company.

This Presentation contains forward-looking statements, which are based on current expectations, projections and assumptions about future events and may differ materially from actual results due to variety of factors including, but not limited to change in the overall economy; and on local and global economy and MAX's ability to manage and develop its business. Statements contained in the Presentation, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. These forward-looking statements can be identified by the use of words such as "aim," "anticipate," "believe," "continues," "could," "estimate," "expect," "intend," "goal," "may," "plan," "project," "projections," "should," "will" and other words that convey uncertainty of future events or outcome. Statements that MAX makes in this Presentation that are not statements of historical fact also may be forward-looking statements. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties, and assumptions that may cause our actual results to differ materially from the expectations that MAX describes in its forward-looking statements. There may be events in the future that MAX is not accurately able to predict, or over which MAX has no control. You should not place undue reliance on forward-looking statements. Although MAX may elect to update forward-looking statements in the future, MAX disclaims any obligation to do so, even if MAX's assumptions and projections change, except where applicable law may otherwise require MAX to do so. These forward-looking statements should not be relied upon as representing MAX's views as of any date subsequent to the date of this Presentation.

This Presentation does not constitute and is not intended to form part of any offer, or the solicitation of any offer, to buy, subscribe for or sell any securities in MAX or any subsidiary of MAX and nothing in this Presentation shall in any way constitute or form part of any legal agreement or be relied on in connection with, any contract, commitment or investment decision. Each recipient of the information contained in this Presentation is responsible for making its own independent assessment of the business, financial condition, prospects, status and affairs of MAX. No person shall have any right of action against MAX or any other person in relation to the accuracy or completeness of the information contained in the Presentation.

This Presentation and the information contained herein are not a solicitation of an offer to buy securities or an offer for the sale of securities in Israel, in the United States or in any other jurisdiction in which such solicitation or offer are not allowed. MAX has not and does not expect to register any securities that it may offer under the Securities Act, or the securities laws of any state of the United States or any other jurisdiction thereof, and any such securities may not be offered or sold in the United States absent registration under the Securities Act or an available exemption from registration.

Nothing in this Presentation constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient.

By attending this Presentation and/or receiving this document, you are agreeing to the terms and conditions set forth above.

This presentation includes certain financial measures not presented in accordance with International Financial Reporting Standards ("IFRS"), including Adjusted EBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to net loss or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.

Financial Highlights and KPIs

Updates

Q3 2023 Financial Highlights

• Revenue grew 7.1%, primarily reflecting strong store traffic and the addition of ~1.3k net SqM vs. Q3 2022
• Gross Profit increased 12.0%, with robust Gross Margins of 41.9% and EBITDA margins of 14.4%
• 17.9% increase in GAAP net income attributable to shareholders

(14.8% of Revenue exc. Portugal)

shareholders excluding Portugal: NIS 0.17, up

7.6% vs. Q3'22

• Revenue grew 6.2%, driven primairly by strong store traffic and the addition of ~1.3k net SqM vs. Sep YTD 2022
• Robust gross margins primarily reflecting efficient management of inventory and continued moderation of global shipping costs
• 35.0% increase in GAAP net income attributable to shareholders

(13.7% of Revenue exc.

Portugal)

Portugal: NIS 0.45, up 15.2% vs. Sep. 2022 YTD.

Swords of Iron War Update

▪ Sales

• As of November 30th, 2023, 60/62 stores are open and operate at full capacity on a normal schedule
• SSSG for the four months of July – October 2023 is negative 2.1, primarily reflecting the temporary closures of our branches, that also partially operated on a reduced time schedule during the month of October

▪ Supply Chain

▪ As of November 30th, 2023, no material supply chain issues have been experienced

▪ Employees

▪ As of November 30th, 2023, employee staffing remained at pre -war capacity

▪ USD / NIS Exchange Rate

▪ As of November 30th, 2023, USD / NIS Appreciation that occurred at the onset of the war has been reversed and the exchange rate as of November 29 was 3.68 , below that on October 6th (3.86 )

▪ Plans

▪ New store openings are according to plan

▪ Donations

• Since October 7 th, we have donated thousands of Max Stock products to our defense forces and soldiers who are on the frontline as well as to Israeli residents evacuated from their homes
• We also continued to accompany and adopt the 53rd IDF Sufa Battalion fighters, an engagement that had started about two years ago

6

Strong and Growing Operating Cash Flows Typically, modest capital expenditures and working capital needs

Capital Deployment and Capital Structure

Annual Dividends and Share Buyback (NIS M) Capital Structure (NIS M)

Q3 Financial Highlights

• Excluding one-time bulk operations in 2020.

• (1) Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs (including IPO costs in 2020 ) + stock-based compensation (SBC) + one-time bulk operation (in 2020) - the impact of IFRS 16

• (2) Net Income (NI) and EPS (both attributable to shareholders) adjusted for stock-based compensation (SBC), one-time bulk operation in 2020 and IPO costs in 2020

September YTD Financial Highlights

• Excluding one-time bulk operations in 2020

• (1) Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs (including IPO costs in 2020 ) + stock-based compensation (SBC) + one-time bulk operation (in 2020) - the impact of IFRS 16

• (2) Net Income (NI) and EPS (both attributable to shareholders) adjusted for stock-based compensation (SBC), one-time bulk operation in 2020 and IPO costs in 2020

Growth Strategies

Looking Forward

New Logistic & Distribution Center

1.5x the aggregate size of our 3 current distribution centers at roughly the same logistic costs
Rationale	Lessor	Key Attributes	Terms	Capex
Support future growth in ▪ Israel, as currently, all growth is directed to TPLs ▪ Assist in extracting operational efficiencies: ▪ Eliminates the need for TPLs in the next years ▪ Consolidates 3 logistic centers into one	A JV jointly held by ▪ Mega Or (MGOR; TASE) and Kibbutz Shomria	Located in Shomriya, ▪ ~100km South-East to Tel Aviv / 30km North East to Be'er Sheba Size: ~31k SqM + 10k ▪ SqM in the future, subject to the agreement terms and completion of construction by the lessor	Expected rental start ▪ date: May 2024 Total of ~25 years ▪ ▪ 10+5+5+4 11/12 ▪ Base rent of ~NIS 1M per month	Estimates of NIS 30M ▪ for necessary capex investments
		Current aggregate size ▪ of our distribution centers is ~20k SqM

Key Attributes of Our Business Model that Generate Demand for Our Products at All Times

Dual Format Store Strategy for Suburban and Urban Markets in Israel

• Located in suburban markets with ample parking
• Average store sizes of~1,900 net SqM /~20,450 sq. ft.(1)

Full assortment of merchandise

Mostly majority owned: 44 stores (34 are majority owned)(2)

Main format priority for current expansion

Max (Big Box Format) Mini Max (Small Box Format)

• Located in city centers
• Average store sizes of ~200 SqM /~2,150 sq. ft.

Typically, lower ticket prices

18 stores (all are franchised)

Second priority growth engine

Evolution of Owned Net SqM and Number of Stores

by format

Evolution of Sep. YTD and Q3 KPIs

Sep. YTD Change in avg. basket* All Owned Stores in the Period; (%)

Be'erot Yitzhak

• Max (Big Box); Company owned
• 3,300 gross / 1,920 net SqM
• Opened on August 31, 2023
• Located at Mivne Shopping Center
• Serving an addressable population of over 70,000 people

Bat Yam

• Max (Big Box); Company owned
• 1,250 gross / 1,000 net SqM
• Opened on November 20, 2023
• Located on Haatzma'ut Blvd. in Bat Yam
• Serving an addressable population of over 125,000 people

Jerusalem

• Max (franchised)
• An inner-city format in Lev Hapisga shopping center
• Opened on November 9, 2023

Our pipeline - Six New Stores

Total of ~16.7K gross SqM / estimated conservative net addition of ~10K net owned SqM(1)

• Kiryat Gat
  • Adding ~1.9k gross SqM
• 2024
• Yavne, Gedera, Kiryat Yam
  • Adding together ~7.9k gross SqM

2025

• Gan Yavne, Beer Sheba
  • Adding together ~6.9k gross SqM

Portugal Update

Max10

• Our chain in Portugal is called Max10 and offers a wide selection of products priced at up to EUR 10 per item
  • Categories include office supplies, homeware, toys, sport, arts and crafts, beauty, camping, birthdays, pets, cleaning and more
• First store (in Braga) was opened in May 2023 (2,200 gross SqM / 1,970 net SqM )
• Second store (in Porto) was opened in June 2023 (720 gross SqM / 480 net SqM )
• Third store (in Matosinhos) was opened in November 2023 (~1,000 gross Sqm / ~700 net SqM)
• The impact on EBITDA was negative contribution of NIS 3.7M and NIS 1.1M for Sep 23 YTD and Q 3 '23, respectively, primarily reflecting expenses to support the start -up of the Company 's operations in Portugal

Appendix

Company Overview

• Apparel Basics
• Arts & Crafts
• Other

Note: Totals may be sightly impacted by minor rounding differences.

• 1) Based on volume sold.
• 2) Other comprised of over 25 subcategories with the largest being OTC Pharmaceutical, Candy, Electronics, Phone Accessories and Outdoors
• 3) As of November 30, 2023. Includes owned net SqM in Israel (60.8k) and Portugal (3.2k)
• 4) Net SqM defined as commercial area in SqM excluding e.g., storage and office spaces. Data refer to owned/ majority owned stores only
• 5) As of March 20, 2023

MAXO

~2,000

Logistic centers

Total Net SqM(3)(4)

employees(5)

over

62

NIS 1billion

locations across Israel(3)

Q3'23 LTM revenue

+3 in Portugal

64.0k

Publicly listed on TASE

Revenue(1) Growth, by Category (NIS M)

Party Supplies, Storage & Consumables ~14% of Sep. 2023 YTD Revenue 106.6 113.1 Sep 2022 YTD Sep 2023 YTD +6.0%

Toys & Baby ~13% of Sep. 2023 YTD Revenue 104.7 108.9 Sep 2022 YTD Sep 2023 YTD +3.9%

Note: Totals may be sightly impacted by minor rounding differences.

(1) Revenue from owned stores and sales to franchisees, in accordance with note #3 to Sep 30. 2023 financial statements.

Evolution of Revenue(1) , by Category (Cont'd; NIS M)

Note: Totals may be sightly impacted by minor rounding differences.

(1) Revenue from owned stores and sales to franchisees, in accordance with note #3 to Sep 30. 2023 financial statements.

Historical Quarterly P&L (Q3)

NIS M

`	2020 Q3	2021 Q3	2022 Q3	2023 Q3
Revenue from sales	260.0	253.6	289.4	309.7
/ Revenue from commissions fees	1.9	2.0	4.1	4.8
Total Revenue	262.0	255.6	293.5	314.5
growth YoY	24.7%	-2.4%	14.8%	7.1%
profit, excluding onetime bulk ope Gross	102.5	98.6	117.7	131.8
of Revenue %	39.1%	38.6%	40.1%	41.9%
S&M	48.2	53.8	66.5	74.3
G&A	8.2	10.9	13.7	13.4
Total SG&A	56.4	64.7	80.2	87.7
SBC Less:	0.0	(3.9)	(3.4)	(0.1)
SG&A excluding SBC	56.4	60.8	76.8	87.5
of Revenue, excluding onetime bulk %	21.5%	23.8%	26.2%	27.8%
of Revenue %	21.5%	23.8%	26.2%	27.8%
Other income	(0.6)	0.0	0.0	0.0
Other expenses	5.3	0.0	0.4	(0.0)
GAAP EBIT	41.4	33.9	37.2	44.2
of Revenue %	15.8%	13.3%	12.7%	14.1%
Adj. EBIT (exc. SBC, onetime and other)	46.0	37.8	40.9	44.3
of Revenue %	17.6%	14.8%	13.9%	14.1%

Historical Quarterly P&L and Net Income Reconciliations (Q3) NIS M

	2020 Q3	Q3 2021	2022 Q3	Q3 2023
` Interest expenses, net	3.8	4.4	4.8	8.1
expenses operation Interest onetime bulk	1.4	0.0	0.0	0.0
EBT	36.1	29.6	32.4	36.1
Adj. EBT (exc. SBC, onetime other) and	42.2	33.5	36.1	36.2
Taxes	9.9	8.6	8.4	9.0
GAAP Net Income	26.2	20.9	24.0	27.1
of Revenue %	10.0%	8.2%	8.2%	8.6%
Adj. Net Income (exc. SBC, one-time bulk operation in
2020 one-time 2020) and IPO costs in	31.8	24.8	27.4	27.2
of Revenue %	12.1%	9.7%	9.3%	8.6%
Net income attributable shareholders to	20.7	17.1	19.6	23.1
attributable non-controlling Net income to interests	5.5	3.8	4.4	4.0
Total GAAP Net Income	26.2	20.9	24.0	27.1
Net Income Adjustments:
SBC	0.0	3.9	3.4	0.1
Onetime bulk operation, of taxes net	1.1	0.0	0.0	0.0
/ Expenses Issuance Costs IPO	4.5	0.0	0.0	0.0
Total Adjustments Net Income	5.6	3.9	3.4	0.1
Adjusted Net Income - Attributable shareholders to	26.3	21.0	23.0	23.2
Adjusted Net Income - Attributable non-controlling to
interests	5.5	3.8	4.4	4.0
Adjusted Income Net	31.8	24.8	27.4	27.2
Basic Shares O/S (000s)	142.3	142.3	141.7	139.3
attributable to shareholders EPS,	0.15	0.12	0.14	0.17
Adj. EPS attributable to shareholders	0.18	0.15	0.16	0.17

Historical Quarterly EBITDA Reconciliations (Q3) NIS M

`	2020 Q3	Q3 2021	2022 Q3	2023 Q3
Income Net	26.2	20.9	24.0	27.1
Expense, Interest Plus net	5.3	4.4	4.8	8.1
Taxes Income Plus	9.9	8.6	8.4	9.0
D&A Plus	11.8	12.8	16.4	19.2
Other Expense, Plus net	4.7	0.0	0.4	(0.0)
EBITDA Post IFRS Other (exc. Expen 16	57.8	46.8	53.9	63.4
SBC Plus	0.0	3.9	3.4	0.1
Minus IFRS 16	(12.0)	(14.4)	(15.4)	(18.3)
Adjusted EBITDA IFRS Pre 16 (exc.
Other SBC and Expenses)	45.8	36.3	41.9	45.2
Onetime bulk operation	0.0	0.0	0.0	0.0
Adjusted EBITDA IFRS Pre 16,
onetime excluding bulk operation	45.8	36.3	41.9	45.2
of Revenue %	17.5%	14.2%	14.3%	14.4%

Historical Quarterly P&L (Sep. YTD)

NIS M

	YTD Q3 2020	YTD Q3 2021	YTD Q3 2022	YTD Q3 2023
Revenue from sales	605.2	721.8	785.8	832.5
/ Revenue from commissions fees	4.4	9.4	11.3	14.4
Total Revenue, excluding onetime bulk operation	609.6	731.2	797.1	846.9
YoY growth	8.4%	19.9%	9.0%	6.2%
Revenue from onetime bulk operation	124.8	0.0	0.0	0.0
Total Revenue	734.4	731.2	797.1	846.9
growth YoY	30.6%	-0.4%	9.0%	6.2%
Gross profit (excluding onetime bulk operation)	239.4	284.0	314.7	351.7
of Revenue (excluding onetime bulk operation) %	39.3%	38.8%	39.5%	41.5%
Gross profit onetime bulk operation	14.3
of Revenue %	11.5%
S&M	118.1	149.6	185.2	202.3
G&A	20.2	32.8	39.6	37.4
Total SG&A	138.2	182.4	224.8	239.7
SBC Less:	0.0	(11.6)	(11.1)	0.5
SG&A excluding SBC	138.2	170.8	213.7	240.2
of Revenue, excluding onetime bulk operation %	22.7%	23.4%	26.8%	28.4%
of Revenue %	18.8%	23.4%	26.8%	28.4%
Other income	(1.1)	(1.6)	(0.3)	(0.1)
Other expenses, net	5.3	0.0	0.5	0.3
GAAP EBIT	111.3	103.2	89.8	111.8
of Revenue %	15.2%	14.1%	11.3%	13.2%
SBC, Adj. EBIT (exc. onetime and other)	101.1	113.2	101.0	111.4
of excluding onetime bulk Revenue, operation %	16.6%	15.5%	12.7%	13.2%

Historical Quarterly P&L and Net Income Reconciliations

Sep. YTD - NIS M

	YTD 2020 Q3	YTD Q3 2021	YTD 2022 Q3	YTD 2023 Q3
expenses, Interest net	11.7	11.9	13.8	19.5
Interest expenses onetime bulk operation	13.3
E/FXE1 gs BT	86.3	91.2	75.9	92.3
Adj. EBT (exc. onetime SBC, and other)	89.4	101.2	87.2	92.0
Taxes	22.1	24.9	20.4	22.8
GAAP Income Net	64.2	66.3	55.5	69.5
of Revenue %	8.7%	9.1%	7.0%	8.2%
Adj. Income (exc. SBC, one-time bulk Net
operation 2020 and one-time costs 2020) in IPO in	67.8	77.9	66.6	69.0
of Revenue, excluding onetime bulk operatio %	11.1%	10.7%	8.4%	8.1%
Income - Attributable shareholders Net to	53.2	54.4	44.9	60.6
- Attributable non-controlling Net Income to intere	11.0	11.9	10.6	8.9
GAAP Net Income	64.2	66.3	55.5	69.5
Net Income Adjustments:
Total income adjustments, of taxes net net - one
time operation bulk	(0.8)
SBC		11.6	11.1	(0.5)
/ expenses Issuance costs IPO	4.5
Total Net Income Adjustments:	3.7	11.6	11.1	(0.5)
- Attributable Adjusted Net Income to shareholders	56.8	66.0	56.0	60.1
Adjusted - Attributable Net Income to non
controlling interests	11.0	11.9	10.6	8.9
Adjusted Income Net	67.8	77.9	66.6	69.0
Basic Shares O/S	142.3	142.3	142.1	139.1
EPS, attributable to shareholders	0.37	0.38	0.32	0.44
Adj. attributable to shareholders EPS	0.40	0.46	0.39	0.43

Historical Quarterly EBITDA Reconciliations (Sep. YTD) NIS M

	YTD 2020 Q3	YTD Q3 2021	YTD 2022 Q3	YTD 2023 Q3
Net Income	64.2	66.3	55.5	69.5
Interest Expense, Plus net	25.0	11.9	13.8	19.5
Income Taxes Plus	22.1	24.9	20.4	22.8
D&A Plus	31.7	37.8	47.7	54.8
Other Expense, Plus net	4.2	(1.6)	0.2	0.2
EBITDA IFRS Other Post (exc. Expenses) 16	147.2	139.4	137.7	166.8
Plus SBC	0.0	11.6	11.1	(0.5)
Minus IFRS 16	(33.1)	(41.5)	(45.7)	(54.2)
Adjusted EBITDA IFRS (exc. SBC Pre 16 and
Other Expenses)	114.1	109.5	103.1	112.1
operation Onetime bulk	(14.4)	0.0	0.0	0.0
Adjusted EBITDA IFRS Onetime Pre (exc. 16
Other bulk operation, SBC and Expenses)	99.7	109.5	103.1	112.1
of Revenue, excluding onetime bulk operatio %	16.4%	15.0%	12.9%	13.2%

Annual and LTM Financial Highlights

2017 2018 2019 2020 2021 2022 Q3'23 LTM

* Excluding one-time bulk operations in 2020

Note: Totals may be sightly impacted by minor rounding differences.

Annual and LTM Financial Highlights (cont'd)

Adjusted EBITDA Pre IFRS 16 (1) (NIS mm; % of Revenue)

1.9x

Adjusted EPS Attributable to Shareholders and NI margin (2) (NIS; %) 1.9x

• (1) Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs (including IPO costs in 2020 ) + stock-based compensation (SBC) + one-time bulk operation (in 2020) - the impact of IFRS 16

• (2) Net Income (NI) and EPS (both attributable to shareholders) adjusted for stock-based compensation (SBC), one-time bulk operation in 2020 and IPO costs in 2020 Note: Totals may be sightly impacted by minor rounding differences.

Our Annual KPIs

Sales per SqM

* Vs. the prior period and reflecting all owned stores in the period.

Talia Sessler

Chief Corporate Development & IR Officer +972-50-7000155