Max Stock Ltd.

Investor Presentation • Aug 15, 2023

Max Stock Q2'23 Earnings Conference Call

August 15, 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 June 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 Q2 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

Q2 2023 Financial Highlights

• Flat revenue, driven by negative SSSG of 2.8% from a shift in the timing of Passover that positively impacted Q1 this year (and Q2 last year). SSSG for May June 2023 (no holiday timing impact) = 3.9%
• Robust gross margins primarily reflecting efficient management of inventory and continued moderation of global shipping costs
• 46.5% increase in GAAP net income attributable to shareholders, also reflecting a decline in SBC expenses this year; 4.9% growth in adjusted net income attributable to shareholders

▪ Adj. EPS attributable to shareholders excluding Portugal: NIS 0.12, up 16.5% vs. Q2'²²

Portugal: NIS 31.8 (12.7% of Revenue exc. Portugal)

H1 2023 Financial Highlights

• Revenue grew 5.7%, driven primairly by strong store traffic
• Robust gross margins primarily reflecting efficient management of inventory and continued moderation of global shipping costs
• 48.4% increase in GAAP net income attributable to shareholders; 11.8% growth in adjusted net income attributable to shareholders

10.4% vs. H1'22

Q2 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

H1 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

Liquidity, Cash Flows and Capital Deployment

Annual Dividends and Share Buyback (NIS M)

Dividend Buyback (1)

(1) Buyback plan of up to NIS 40M, of which NIS 19.9M already executed in 2022 and in 2023 YTD.

1 As of June 30, 2023 2 Net Cash = Debt minus Cash

needs

Ample liquidity and

conservative debt on

financial flexibility

Cash Position(1):

NIS 65.2M

NIS 30.8M

Net Cash Position(1)(2)

Typically, modest capital

expenditures and working capital

Balance Sheet to ensure

Growth Strategies

Looking Forward

Key Attributes of Our Business Model

Pure and focused player Big volume purchases Low price points Limited fixed

assortment

Broad selection of products

No high street locations

Low overhead and marketing expenditures

Key Drivers Contributing to Our Performance

High Demand for discount

Continued expansion of our store base

Relevant and strong offering

Good availability in stores

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

Office & School Supplies ~5% of 2022 Revenue

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 H1'23 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 H1'23 financial statements.

Evolution of H1 and Q2 KPIs

H1 Change in avg. basket* All Owned Stores in the Period; (%)

Evolution of Owned Net SqM and Number of Stores

Our pipeline Total of ~21k gross SqM / ~11 net SqM, plus one new franchised store

2023

• Be'erot Yitzhak, Kiryat Gat, Yavne, Bat Yam
• Adding together ~9.8k gross SqM

One new franchised store:

▪ Jerusalem (Pisgat Ze'ev)

2024 & 2025

2024 - Gedera, Kiryat Yam

▪ Adding together ~4.5k gross SqM

2025 - Gan Yavne, Beer Sheba (replacing an existing store)

▪ Adding together ~6.9k gross SqM

Welcome to Max10

• The Portugal chain 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)
• Current pipeline includes one additional store, expected to be opened in Q 4 '23
• Impact on H 1 '23 and Q 2 '23: Negative EBITDA contribution of NIS 2.6M and NIS 1.7M, respectively, primarily reflecting expenses to support the start -up of the Company 's operations in Portugal

Talia Sessler

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

Company Overview 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 August 15, 2023. Includes owned net SqM in Israel (59.3k) and Portugal (2.5k)
• 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

employees(5)

Publicly listed on TASE

Historical Quarterly P&L (Q2) NIS M

`		Q2 2020 Q2 2021 Q2 2022 Q2 2023
Revenue from sales	172.9	220.7	249.2	248.3
Revenue from commissions / fees	1.2	2.9	3.5	4.4
Total Revenue	174.2	223.6	252.7	252.8
YoY growth	(2.2%)	28.4%	13.0%	0.0%
Revenue from onetime bulk operation	112.2	0.0	0.0	0.0
Total Revenue	286.4	223.6	252.7	252.8
YoY growth	60.8%	-21.9%	13.0%	0.0%
Gross profit, excluding onetime bulk operation	67.2	85.6	99.2	104.0
% of Revenue	38.6%	38.3%	39.3%	41.2%
Gross profit onetime bulk operation	9.7
% of onetime bulk operation	8.6%
S&M	30.9	47.3	61.1	62.7
G&A	6.0	9.6	13.4	10.6
Total SG&A	36.9	57.0	74.5	73.3
Less: SBC	0.0	(3.9)	(3.8)	0.7
SG&A excluding SBC	36.9	53.1	70.6	74.0
% of Revenue, excluding onetime bulk operation	21.2%	23.8%	28.0%	29.3%
% of Revenue	12.9%	23.8%	28.0%	29.3%
Other income	(0.5)	(1.6)	0.0	(0.1)
Other expenses	0.0	0.0	0.0	0.3
GAAP EBIT	40.4	30.2	24.7	30.5
% of Revenue	14.1%	13.5%	9.8%	12.1%
Adj. EBIT (exc. SBC, onetime and other)	30.3	32.5	28.6	30.0
% of Revenue	17.4%	14.5%	11.3%	11.9%

Historical Quarterly P&L and Net Income Reconciliations (Q2) NIS M

`			Q2 2020 Q2 2021 Q2 2022 Q2 2023
Interest expenses, net	5.8	4.7	4.6	6.0
EBT	26.3	25.5	20.1	24.5
Adj. EBT (exc. SBC, onetime and other)	24.5	27.8	23.9	24.0
Taxes	6.4	7.1	5.7	6.2
GAAP Net Income	19.9	18.4	14.4	18.3
% of Revenue	7.0%	8.2%	5.7%	7.2%
Adj. Net Income (exc. SBC, one-time bulk operation in
2020 and one-time IPO costs in 2020)	18.9	22.3	18.3	17.7
% of Revenue	10.8%	10.0%	7.2%	7.0%
Net income attributable to shareholders	16.3	14.9	11.3	16.6
Net income attributable to non-controlling interests	3.6	3.5	3.1	1.7
Total GAAP Net Income	19.9	18.4	14.4	18.3
Net Income Adjustments:
SBC	0.0	3.9	3.8	(0.7)
Onetime bulk operation, net of taxes	(1.0)	0.0	0.0	0.0
Total Net Income Adjustments	(1.0)	3.9	3.8	(0.7)
Adjusted Net Income - Attributable to shareholders Adjusted Net Income - Attributable to non-controlling	15.3	18.8	15.2	15.9
interests	3.6	3.5	3.1	1.7
Adjusted Net Income	18.9	22.3	18.3	17.7
Basic Shares O/S (000s)	142.3	142.3	142.3	139.0
EPS, attributable to shareholders	0.11	0.10	0.08	0.12
Adj. EPS attributable to shareholders	0.11	0.13	0.11	0.11

Historical Quarterly EBITDA Reconciliations (Q2) NIS M

`	Q2 2020	Q2 2021	Q2 2022	Q2 2023
Net Income	19.9	18.4	14.4	18.3
Plus Interest Expense, net	14.1	4.7	4.6	6.0
Plus Income Taxes	6.4	7.1	5.7	6.2
Plus D&A	9.4	12.6	16.4	18.2
Plus Other Expense, net	(0.5)	(1.6)	0.0	0.2
EBITDA Post IFRS 16 (exc. Other Expenses)	49.4	41.2	41.1	48.9
Plus SBC	0.0	3.9	3.8	(0.7)
Minus IFRS 16	(10.2)	(14.3)	(15.6)	(18.1)
Adjusted EBITDA Pre IFRS 16 (exc. SBC and Other
Expenses)	39.1	30.7	29.3	30.1
Onetime bulk operation	(9.7)	0.0	0.0	0.0
Adjusted EBITDA Pre IFRS 16, excluding onetime bulk
operation	29.5	30.7	29.3	30.1
% of Revenue	16.9%	13.7%	11.6%	11.9%

Historical Quarterly P&L (H1)

NIS M

	H1 2020	H1 2021	H1 2022	H1 2023
Revenue from sales	345.2	469.3	496.4	522.8
Revenue from commissions / fees	2.4	6.3	7.2	9.6
Total Revenue, excluding onetime bulk operation	347.6	475.6	503.6	532.4
YoY growth	(1.3%)	36.8%	5.9%	5.7%
Revenue from onetime bulk operation	124.8	0.0	0.0	0.0
Total Revenue	472.4	475.6	503.6	532.4
YoY growth		0.7%	5.9%	5.7%
Gross profit (excluding onetime bulk operation)	136.9	185.4	197.0	219.8
% of Revenue (excluding onetime bulk operation)	39.4%	39.0%	39.1%	41.3%
Gross profit onetime bulk operation	14.3
% of Revenue	11.5%
S&M	69.9	95.8	118.7	128.0
G&A	11.9	21.9	25.9	24.0
Total SG&A	81.8	117.7	144.6	152.0
Less: SBC	0.0	(7.7)	(7.7)	0.7
SG&A excluding SBC	81.8	110.0	136.9	152.7
% of Revenue, excluding onetime bulk operation	23.5%	23.1%	27.2%	28.7%
% of Revenue	17.3%	23.1%	27.2%	28.7%
Other income	(0.5)	(1.6)	(0.3)	(0.1)
Other expenses, net	0.0	0.0	0.1	0.3
GAAP EBIT	69.9	69.3	52.6	67.6
% of Revenue	14.8%	14.6%	10.4%	12.7%
Adj. EBIT (exc. SBC, onetime and other)	55.1	75.4	60.1	67.1
% of Revenue, excluding onetime bulk operation	15.8%	15.8%	11.9%	12.6%

Historical Quarterly P&L and Net Income Reconciliations (H1) NIS M

			H1 2020 H1 2021 H1 2022 H1 2023
Interest expenses, net	7.9	7.6	9.1	11.4
Interest expenses onetime bulk operation	11.8
EBT	50.2	61.7	43.5	56.2
Adj. EBT (exc. SBC, onetime and other)	47.2	67.8	51.1	55.7
Taxes	12.2	16.3	12.0	13.8
GAAP Net Income	38.0	45.4	31.5	42.4
% of Revenue	8.0%	9.5%	6.2%	8.0%
Adj. Net Income (exc. SBC, one-time bulk operation in 2020	36	53	39	42
% of Revenue, excluding onetime bulk operation	10.4%	11.2%	7.8%	7.8%
Net Income - Attributable to shareholders	32.5	37.3	25.3	37.5
Net Income - Attributable to non-controlling interests	5.5	8.1	6.2	4.9
GAAP Net Income	38.0	45.4	31.5	42.4
Net Income Adjustments:
Total net income adjustments, net of taxes - one-time bulk
operation	(1.9)
SBC		7.7	7.7	(0.7)
Issuance costs / IPO expenses
Total Net Income Adjustments:	(1.9)	7.7	7.7	(0.7)
Adjusted Net Income - Attributable to shareholders	30.6	45.0	33.0	36.9
Adjusted Net Income - Attributable to non-controlling interests	5.5	8.1	6.2	4.9
Adjusted Net Income	36.0	53.1	39.2	41.8
Basic Shares O/S	142.3	142.3	142.3	139.0
EPS, attributable to shareholders	0.23	0.26	0.18	0.27
Adj. EPS attributable to shareholders	0.21	0.32	0.23	0.27

Historical Quarterly EBITDA Reconciliations (H1) NIS M

	H1 2020	H1 2021	H1 2022	H1 2023
Net Income	38.0	45.4	31.5	42.4
Plus Interest Expense, net	19.8	7.6	9.1	11.4
Plus Income Taxes	12.2	16.3	12.0	13.8
Plus D&A	19.9	24.9	31.3	35.6
Plus Other Expense, net	(0.5)	(1.6)	(0.2)	0.2
EBITDA Post IFRS 16 (exc. Other Expenses)	89.4	92.6	83.7	103.4
Plus SBC	0.0	7.7	7.7	(0.7)
Minus IFRS 16	(21.1)	(27.1)	(30.3)	(35.9)
Adjusted EBITDA Pre IFRS 16 (exc. SBC and Other
Expenses)	68.3	73.2	61.2	66.9
Onetime bulk operation	(14.4)	0.0	0.0	0.0
Adjusted EBITDA Pre IFRS 16 (exc. Onetime bulk
operation, SBC and Other Expenses)	53.9	73.2	61.2	66.9
% of Revenue, excluding onetime bulk operation	15.5%	15.4%	12.1%	12.6%
Total adjustments	(21.1)	(19.4)	(22.6)	(36.6)
EBITDA Post IFRS 16 (exc. Other Expenses) - % of Revenue	25.7%	19.5%	16.6%	19.4%

Annual and LTM Financial Highlights

* Excluding one-time bulk operations in 2020

Annual and LTM Financial Highlights (cont'd)

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

1.8x

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

Our Annual KPIs

Sales per SqM

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

Our Financial Targets in the Short–Mid Term

Metric	Target	Commentary
Unit Growth	3 – 5 New Max Stores Annually	Refers to Company owned / majority owned stores
Annual Revenue Growth	Low – mid teens	Including growth in Portugal / other growth engines
Annual SSS	3%	SSSG for owned / majority owned stores
Pre IFRS 16 Adjusted EBITDA Margin	~13%	Potential to further expand margins by 100bps (to ~14%) in the longer term
Adj. annual EPS Growth (1)	Similar to revenue growth	EPS attributable to shareholders and adjusted for share- based payments (SBC)