Max Stock Q1'23 Earnings Conference Call

May 23, 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 March 31, 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 Q1 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.

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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.

Q1'2023 Financial Highlights

Double digit growth in adjusted net income attributable to shareholders; 50% increase in GAAP net income attributable to shareholders
Revenue grew 11.5%, driven by 8.6% SSSG that benefitted from the timing of Passover, higher store traffic and an increase in Purim sales. SSSG for January – April 2023 (no holiday timing impact) = 2.5%
Robust gross margins primarily reflecting a moderation of global shipping costs and efficient management of inventory

to shareholders: NIS 0.15, up 20.4% vs.

Q1'22

We are Israel 's leading extreme value retailer

We offer a broad assortment of quality products for customers' everyday needs at affordable prices, helping customers "Dream Big, Pay Small"

Company Overview

Office / School Supplies
Apparel Basics
Arts & Crafts

1) Data for FY 2022

2) Other comprised of over 25 subcategories with the largest being OTC Pharmaceutical, Candy, Electronics, Phone Accessories and Outdoors
3) As of March 31, 2023
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

Q1'2023 Revenue Contribution and Growth, per Core Category

% Contribution and Category YoY growth(1)

Czamanski & Ben Shahar (an economic and business consulting firm in Israel) refers to Max Stock Purim Customs @ up to NIS 49.90

Growth Strategies

Looking Forward

Looking Forward: Double Company Owned Net SqM vs. 2019 over the Next 2-3 Years

Harim Mall

Max (Big Box); Company owned
1,570 gross / 1,000 net SqM
Opened on March 21, 2023
Located at Gush Etzion junction at Harim Mall
Serving an addressable population of over 70,000 people

Tel Aviv

(Nofey Yam)

Mini Max (franchised)
An inner-city format without parking, in Tel Aviv 's Nofey Yam neighborhood
Opened on March 24, 2023

Acre

(Known locally as Akko)

Mini Max (franchised)
An inner-city format without parking, in Acre
Serving an addressable population of about 50,000 people
Opened on April 4, 2023

Our pipeline - six new stores

Total of ~17k gross SqM / estimated conservative addition of ~11k net owned SqM(1) , plus one new franchised store

2023

Be'erot Yitzhak, Kiryat Gat, Bat Yam
- Adding together ~6.4k gross SqM

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

One new franchised store:

▪ Jerusalem (Pisgat Ze'ev) – 2023

Portugal

Updates

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 on May 14, 2023 (2,200 gross SqM / 1,970 net SqM )
Current pipeline includes 2 additional stores, both expected to be opened in H2 2023
Initial financing for first two years is up to EUR 5 million
- Impact on Q 1 '23: Negative EBITDA contribution of NIS 0.9 M

Financial Highlights and KPIs

Updates

Q1 Financial Highlights

Gross Profit*

• 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

Our Quarterly KPIs

All Owned Stores in the Period; (%)

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

Liquidity, Cash Flows and Capital Deployment

Annual Dividends and Share Buyback (NIS M)

Ample liquidity and conservative debt on Balance Sheet to ensure financial flexibility

Cash Position(1): NIS 116.9M

Net Cash Position(1)(2) NIS 70.9M

¹As of March 31, 2023 ² Net Cash = Debt minus Cash

Pro Forma for NIS 60M in dividend distribution in April 2023, net cash is NIS 10.9M

Typically, modest capital expenditures and working capital needs

Talia Sessler

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

Historical Quarterly P&L

NIS M

`	Q1-2020	Q1-2021	Q1-2022	Q1-2023
Revenue from sales	172.3	249.6	247.2	274.5
Revenue from commissions / fees	1.2	2.4	3.7	5.1
Total Revenue	173.5	252.0	250.9	279.6
YoY growth	(0.3%)	45.3%	(0.4%)	11.5%
Revenue from onetime bulk operation	12.6	0.0	0.0	0.0
Total revenue inc. onetime	186.1	252.0	250.9	279.6
YoY growth	6.9%	35.4%	(0.4%)	11.5%
Gross profit, excluding onetime bulk operation	69.8	99.8	97.8	115.8
% of Revenue	40.2%	39.6%	39.0%	41.4%
Gross profit onetime bulk operation	4.7
% of onetime bulk operation	37.0%
S&M	39.0	48.5	57.6	65.3
G&A	5.9	12.3	12.5	13.4
Total SG&A	44.9	60.8	70.1	78.7
Less: SBC	0.0	(3.8)	(3.9)	(0.0)
SG&A excluding SBC	44.9	56.9	66.3	78.7
% of Revenue, excluding onetime bulk
operation	25.9%	22.6%	26.4%	28.1%
% of Revenue	24.1%	22.6%	26.4%	28.1%
Other income	(0.0)	0.0	(0.3)	0.0
Other expenses	0.0	0.0	0.1	0.0
GAAP EBIT	29.5	39.0	27.9	37.1
% of Revenue	15.9%	15.5%	11.1%	13.3%
Adj. EBIT (exc. SBC, onetime and other)	24.8	42.9	31.6	37.1
% of Revenue	14.3%	17.0%	12.6%	13.3%

Historical Quarterly P&L and Net Income Reconciliations NIS M

`	Q1-2020	Q1-2021	Q1-2022	Q1-2023
Interest expenses, net	2.2	2.9	4.4	5.4
EBT Adj. EBT (exc. SBC, onetime and other)	23.9 22.7	36.2 40.0	23.4 27.1	31.7 31.7
Taxes	5.8	9.2	6.4	7.6
GAAP Net Income % of Revenue Adj. Net Income (exc. SBC, one-time bulk operation in	18.1 9.7%	27.0 10.7%	17.0 6.8%	24.1 8.6%
2020 and one-time IPO costs in 2020) % of Revenue	17.1 9.9%	30.8 12.2%	20.9 8.3%	24.1 8.6%
Net income attributable to shareholders Net income attributable to non-controlling interests Total GAAP Net Income	16.3 1.8 18.1	22.4 4.6 27.0	14.0 3.1 17.0	20.9 3.2 24.1
Net Income Adjustments: SBC Onetime bulk operation, net of taxes Total Net Income Adjustments	0.0 (0.9) (0.9)	3.8 0.0 3.8	3.9 0.0 3.9	0.0 0.0 0.0
Adjusted Net Income - Attributable to shareholders Adjusted Net Income - Attributable to non-controlling	15.3	26.3	17.8	20.9
interests Adjusted Net Income	1.8 17.1	4.6 30.8	3.1 20.9	3.2 24.1
Basic Shares O/S (000s)	142.3	142.3	142.3	139.0
EPS, attributable to shareholders Adj. EPS attributable to shareholders	0.11 0.11	0.16 0.18	0.10 0.13	0.15 0.15

Historical Quarterly EBITDA Reconciliations NIS M

`	Q1-2020	Q1-2021	Q1-2022	Q1-2023
Net Income	18.1	27.0	17.0	24.1
Plus Interest Expense, net	5.6	2.9	4.4	5.4
Plus Income Taxes	5.8	9.2	6.4	7.6
Plus D&A	10.5	12.4	15.0	17.5
Plus Other Expense, net	(0.0)	0.0	(0.2)	0.0
EBITDA Post IFRS 16 (exc. Other Expenses)	40.0	51.4	42.7	54.5
Plus SBC	0.0	3.8	3.9	0.0
Minus IFRS 16	(10.9)	(12.8)	(14.7)	(17.8)
Adjusted EBITDA Pre IFRS 16 (exc. SBC and Other
Expenses)	29.1	42.4	31.8	36.7
Onetime bulk operation	(4.7)	0.0	0.0	0.0
Adjusted EBITDA Pre IFRS 16, excluding onetime bulk
operation	24.4	42.4	31.8	36.7
% of Revenue	14.1%	16.8%	12.7%	13.1%

Adjusted EBITDA Bridge (Q1'2022 to Q1'2023; NIS M)

Our Annual KPIs