Max Stock Ltd.

Investor Presentation • Nov 20, 2024

MAX STOCK Q3 & YTD 2024 Earnings Conference Call

November 20, 2024

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 30, 2024. 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 2024 Financial Statements and in 2023 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.

Q3 2024 RESULTS

Strong momentum from 1H continues with Q3 revenue up 18.6% and a 26.5% increase in GAAP net income

SSSG SSSG for July–Oct'24 = 13.7% 9.2%

GROSS MARGIN -60 BPS vs. Q3'23 41.3% Primarily related to the transition into the new DC

Adj. EBITDA* NIS 56.5M NIS 34.3M 15.1% of revenue; +80 BPS vs. Q3'23

Up 26.5%; 9.2% of revenue; +50 BPS vs. Q3'23 GAAP NET INCOME (100%)

NIS 0.22 Adjusted EPS** Up 34.7% vs. Q3'23 3 3

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

* Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs + stock-based compensation (SBC) - the impact of IFRS 16

** EPS attributable to shareholders adjusted for stock-based compensation (SBC)

Q3 Financial Highlights

Gross Profit*

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

1. Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs + stock-based compensation (SBC) - the impact of IFRS 16

2. Net Income (NI) and EPS (both attributable to shareholders) adjusted for stock-based compensation (SBC)

Jan-Sep 2024 (YTD) RESULTS

Strong YTD performance highlighted by high teens revenue growth, high single digit same store sales growth and GAAP net income ahead of our total GAAP net income for all of 2023

Adj. EBITDA* NIS 144.3M NIS 92.3M 14.4% of revenue; +110 BPS vs. Jan-Sep'23

REVENUE

GAAP NET INCOME (100%) Up 32.8%;

9.2% of revenue; +100 BPS vs. Jan-Sep'23

NIS 0.59 Adjusted EPS** Up 37.5% vs. Jan-Sep'23

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

* Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs + stock-based compensation (SBC) - the impact of IFRS 16

** EPS attributable to shareholders adjusted for stock-based compensation (SBC)

Jan-Sep 2024 (YTD) Financial Highlights

Gross Profit*

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

1. Adjusted EBITDA pre IFRS 16 = EBIT + D&A + other costs + stock-based compensation (SBC) - the impact of IFRS 16

2. Net Income (NI) and EPS (both attributable to shareholders) adjusted for stock-based compensation (SBC)

Annual Financial Highlights

Note: Totals may be sightly impacted by minor rounding differences. LTM = Last twelve months

* Excluding one-time bulk operations in 2020

Annual Financial Highlights (cont'd)

Note: Totals may be sightly impacted by minor rounding differences. . LTM = Last twelve months.

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

Excellent Cash Generation Typically, low capex and working capital needs

Cash Flows from Operating Activities – Capex – Lease Payments; % Cash Conversion (1) (NIS M; % of Adjusted EBITDA Pre IFRS 16 (2))

1) (Cash Flows from Operating Activities – Capex – Lease Payments) / Adjusted EBITDA Pre IFRS 16

2) 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

Growth Strategies

Looking Forward

Strong double-digit growth YTD across our six core categories

Jan-Sep 2024 Revenue Contribution and Growth, per Category

% Contribution (1)

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

… and our "Other" category (that contributed ~ 25% to YTD'24 revenue from sales and is comprised of over 25 subcategories) is our fastest growing category (up 22.9% YoY)

Main KPIs

Strong volume growth along with a positive change in basket size accelerated SSSG in 2024

^~6,000 net SqM

Added since Sep 2023

~10% increase

Note: Net SqM defined as commercial area in SqM excluding e.g., storage and office spaces. Changes in net SqM vs. Q3 2023 also includes re-measurement of net commercial area of existing stores that reduced net SqM by ~700 SqM. * Old store in Nesher was ~800 net SqM while new store is ~1,300 net SqM (i.e., net addition of ~500 net SqM).

Pipeline

• Expected to add ~ 9k gross SqM / ~ 6k net SqM
  • Gedera (2025 )
  • Beer Sheba (2025 )
  • Beer Tuvia / Ad Halom (2025/2026)
  • Gan Yavne (2026)
• Additional stores are under various negotiation stages

Looking Forward: Add ~45k of owned net SqM in Israel by 2030

Note: Net SqM defined as commercial area in SqM excluding e.g., storage and office spaces. Totals may be sightly impacted by minor rounding differences.

New Logistic & Distribution Center Opened on June 1 st , 2024

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 (of which, one logistic center has already been closed)	▪ A JV jointly held by Mega Or (TASE: MGOR) 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 ▪ Current aggregate size of our distribution centers is ~20k SqM	▪ Rental start date: June 1 st 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, of which 21M already invested as of September 30th , 2024

Max10 – Portugal Update

• Made strategic decision to cease JV operations by end of 2025 following completion of the initial financing phase
• NIS 3.6M of expenses related to the write off of right -of -use assets were included in Q 3 '24 Other Expenses
• Portugal has negatively impacted our YTD adjusted Pre -IFRS 16 EBITDA by NIS 3.2M (negative impact of NIS 0.9M in Q 3 '24 )
• Closure of JV is not expected to have a material impact on Max Stock 's future performance

Talia Sessler

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

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 26 subcategories with the largest being OTC Pharmaceutical, Electronics, Phone Accessories and Outdoors
• 3) As of September 30, 2024. Includes owned net SqM in Israel (~65.2k) and owned net SqM in Portugal (~2.3k) .
• 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 26, 2024

MAXO

~2,200

Logistic centers

Total Net SqM(3)(4)

employees(5)

Publicly listed on TASE

~NIS 1.3 Bn.

locations across Israel(3)

+2 in Portugal

~67.5k

Q3'24 LTM revenue

64

Dual Format Store Strategy for Suburban and Urban Markets in Israel

• Located in suburban markets with ample parking
• Average store sizes of~1,750 net SqM /~18,800 sq. ft.(1)

Full assortment of merchandise

Mostly majority owned: 45 stores (37 are majority owned)(2)

Main format priority for current expansion

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

Typically, lower ticket prices

Second priority growth engine

STORE COUNT AND OWNED NET SQM (End-of-Period)

IFRS 16 Reconciliations (Q3) NIS M

		Q3/2023	Q3/2024
	GAAP	Pre IFRS 16		IFRS Pre 16
EBIT	44.2	41.6	51.2	50.3
Interest expenses, net	8.1	1.2	5.7	(2.0)
EBT	36.1	40.4	45.5	52.3
Taxes	9.0	10.0	11.3	12.8
GAAP Income Net	27.1	30.4	34.3	39.4
EBITDA	63.4	45.1	79.2	56.5
SBC Plus:	0.1	0.1	0.0	0.0
EBITDA SBC exc.	63.5	45.2	79.2	56.5

IFRS 16 Reconciliations (Jan – Sep. YTD)

NIS M

	YTD/2023		YTD/2024
	GAAP	IFRS Pre 16	GAAP	IFRS Pre 16
EBIT	111.8	102.5	138.2	129.7
Interest expenses, net	19.5	1.3	15.9	(4.1)
EBT	92.3	101.2	122.3	133.8
Taxes	22.8	24.9	30.0	32.6
GAAP Net Income	69.5	76.4	92.3	101.1
EBITDA	166.8	112.6	207.1	144.1
SBC Plus:	(0.5)	(0.5)	0.1	0.1
EBITDA SBC exc.	166.3	112.1	207.2	144.3

Historical Quarterly P&L (Q3) NIS M

	2020 Q3	Q3 2021	2022 Q3	2023 Q3	2024 Q3
from sales Revenue	260.0	253.6	289.4	309.7	367.8
/ commissions fees Revenue from	1.9	2.0	4.1	4.8	5.3
Total Revenue	262.0	255.6	293.5	314.5	373.1
YoY growth	24.7%	(2.4%)	14.8%	7.1%	18.6%
Gross profit	102.5	98.6	117.7	131.8	154.1
of Revenue %	39.1%	38.6%	40.1%	41.9%	41.3%
S&M	48.2	53.8	66.5	74.3	83.5
G&A	8.2	10.9	13.7	13.4	15.8
Total SG&A	56.4	64.7	80.2	87.7	99.3
SBC Less:	0.0	(3.9)	(3.4)	(0.1)	(0.0)
SG&A excluding SBC	56.4	60.8	76.8	87.5	99.2
of Revenue %	21.5%	23.8%	26.2%	27.8%	26.6%
income Other	(0.6)	0.0	0.0	0.0	0.0
Other expenses	5.3	0.0	0.4	(0.0)	3.6
GAAP EBIT	41.4	33.9	37.2	44.2	51.2
of Revenue %	15.8%	13.3%	12.7%	14.1%	13.7%
Adj. EBIT (exc. SBC, onetime and other)	46.0	37.8	40.9	44.3	54.9
of Revenue %	17.6%	14.8%	13.9%	14.1%	14.7%

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

	2020 Q3	Q3 2021	2022 Q3	2023 Q3	2024 Q3
Interest expenses, net	3.8	4.4	4.8	8.1	5.7
Interest expenses onetime bulk operation	1.4	0.0	0.0	0.0	0.0
EBT	36.1	29.6	32.4	36.1	45.5
Adj. EBT (exc. onetime SBC, and other)	42.2	33.5	36.1	36.2	49.2
Taxes	9.9	8.6	8.4	9.0	11.3
GAAP Net Income	26.2	20.9	24.0	27.1	34.3
of Revenue %	10.0%	8.2%	8.2%	8.6%	9.2%
Adj. Net Income (exc. SBC, one-time bulk operation
2020 one-time costs 2020) and IPO in in	31.8	24.8	27.4	27.2	34.3
of Revenue %	12.1%	9.7%	9.3%	8.6%	9.2%
attributable Net income to shareholders	20.7	17.1	19.6	23.1	31.3
attributable Net income non-controlling interests to	5.5	3.8	4.4	4.0	3.0
Total Net Income GAAP	26.2	20.9	24.0	27.1	34.3
Adjustments: Net Income
SBC	0.0	3.9	3.4	0.1	0.0
Onetime bulk operation, of taxes net	1.1	0.0	0.0	0.0	0.0
/ Issuance Costs Expenses IPO	4.5	0.0	0.0	0.0	0.0
Adjustments Total Net Income	5.6	3.9	3.4	0.1	0.0
- Attributable Adjusted Net Income to shareholders	26.3	21.0	23.0	23.2	31.3
Adjusted - Attributable Net Income to non-controlling
interests	5.5	3.8	4.4	4.0	3.0
Adjusted Net Income	31.8	24.8	27.4	27.2	34.3
Basic Shares O/S (000s)	142.3	142.3	141.7	139.3	139.4
attributable to shareholders EPS,	0.15	0.12	0.14	0.17	0.22
Adj. attributable to shareholders EPS	0.18	0.15	0.16	0.17	0.22

Historical Quarterly EBITDA Reconciliations (Q3) NIS M

	2020 Q3	2021 Q3	2022 Q3	2023 Q3	2024 Q3
Net Income	26.2	20.9	24.0	27.1	34.3
Interest Expense, Plus net	5.3	4.4	4.8	8.1	5.7
Taxes Plus Income	9.9	8.6	8.4	9.0	11.3
D&A Plus	11.8	12.8	16.4	19.2	24.3
Other Expense, Plus net	4.7	0.0	0.4	(0.0)	3.6
EBITDA IFRS Other Post (exc. Expenses) 16	57.8	46.8	53.9	63.4	79.2
SBC Plus	0.0	3.9	3.4	0.1	0.0
Minus IFRS 16	(12.0)	(14.4)	(15.4)	(18.3)	(22.7)
Adjusted EBITDA IFRS (exc. SBC Other Pre 16 and
Expenses)	45.8	36.3	41.9	45.2	56.5
Onetime operation bulk	0.0	0.0	0.0	0.0	0.0
Adjusted EBITDA IFRS onetime Pre 16, excluding
bulk operation	45.8	36.3	41.9	45.2	56.5
of Revenue %	17.5%	14.2%	14.3%	14.4%	15.1%

	YTD Q3 2020	YTD Q3 2021	YTD Q3 2022	YTD Q3 2023	YTD Q3 2024
Revenue from sales	605.2	721.8	785.8	832.5	987.8
/ Revenue from commissions fees	4.4	9.4	11.3	14.4	15.3
excluding onetime bulk Total Revenue, operation	609.6	731.2	797.1	846.9	1,003.1
YoY growth	8.4%	19.9%	9.0%	6.2%	18.4%
from onetime bulk operation Revenue	124.8	0.0	0.0	0.0	0.0
Total Revenue	734.4	731.2	797.1	846.9	1,003.1
growth YoY	30.6%	(0.4%)	9.0%	6.2%	18.4%
Gross profit (excluding onetime bulk operation)	239.4	284.0	314.7	351.7	418.7
of Revenue onetime bulk (excluding operation) %	39.3%	38.8%	39.5%	41.5%	41.7%
Gross onetime operation profit bulk	14.3
of Revenue %	11.5%
S&M	118.1	149.6	185.2	202.3	231.2
G&A	20.2	32.8	39.6	37.4	45.7
Total SG&A	138.2	182.4	224.8	239.7	277.0
Less: SBC	0.0	(11.6)	(11.1)	0.5	(0.1)
SG&A excluding SBC	138.2	170.8	213.7	240.2	276.8
of bulk Revenue, excluding onetime operation %	22.7%	23.4%	26.8%	28.4%	27.6%
of Revenue %	18.8%	23.4%	26.8%	28.4%	27.6%
Other income	(1.1)	(1.6)	(0.3)	(0.1)	(0.2)
Other expenses, net	5.3	0.0	0.5	0.3	3.8
GAAP EBIT	111.3	103.2	89.8	111.8	138.2
of Revenue %	15.2%	14.1%	11.3%	13.2%	13.8%
Adj. onetime EBIT (exc. SBC, and other)	101.1	113.2	101.0	111.4	141.9
of bulk Revenue, excluding onetime operation %	16.6%	15.5%	12.7%	13.2%	14.1%

Historical Quarterly P&L and Net Income Reconciliations (jan – ^sep. ytd) NIS M

	YTD Q3 2020	YTD Q3 2021	YTD Q3 2022	YTD Q3 2023	YTD 2024 Q3
Interest expenses, net	11.7	11.9	13.8	19.5	15.9
expenses onetime operation Interest bulk	13.3
EBT	86.3	91.2	75.9	92.3	122.3
Adj. onetime EBT (exc. SBC, and other)	89.4	101.2	87.2	92.0	126.0
Taxes	22.1	24.9	20.4	22.8	30.0
GAAP Net Income	64.2	66.3	55.5	69.5	92.3
of Revenue %	8.7%	9.1%	7.0%	8.2%	9.2%
Adj. Net Income (exc. SBC, one-time bulk operation in
one-time 2020 and IPO costs 2020) in	67.8	77.9	66.6	69.0	92.5
of bulk Revenue, excluding onetime operation %	11.1%	10.7%	8.4%	8.1%	9.2%
Attributable to shareholders Net Income -	53.2	54.4	44.9	60.6	83.0
Attributable Net Income to non-controlling interests -	11.0	11.9	10.6	8.9	9.3
GAAP Net Income	64.2	66.3	55.5	69.5	92.3
Adjustments: Net Income
Total income adjustments, of taxes one-time net net -
bulk operation	(0.8)
SBC		11.6	11.1	(0.5)	0.1
/ Issuance costs expenses IPO	4.5
Adjustments: Total Net Income	3.7	11.6	11.1	(0.5)	0.1
Attributable Adjusted Income to shareholders Net -	56.8	66.0	56.0	60.1	83.2
Adjusted Attributable non-controlling Net Income to -
interests	11.0	11.9	10.6	8.9	9.3
Adjusted Net Income	67.8	77.9	66.6	69.0	92.5
Basic Shares O/S	142.3	142.3	142.1	139.1	139.4
attributable to shareholders EPS,	0.37	0.38	0.32	0.44	0.59
attributable shareholders Adj. EPS to	0.40	0.46	0.39	0.43	0.59

Historical Quarterly EBITDA Reconciliations (Jan – Sep. YTD) NIS M

	2020 YTD Q3	YTD Q3 2021	2022 YTD Q3	2023 YTD Q3	2024 YTD Q3
Net Income	64.2	66.3	55.5	69.5	92.3
Interest net Plus Expense,	25.0	11.9	13.8	19.5	15.9
Income Plus Taxes	22.1	24.9	20.4	22.8	30.0
D&A Plus	31.7	37.8	47.7	54.8	65.3
Other net Plus Expense,	4.2	(1.6)	0.2	0.2	3.6
Other EBITDA Post 16 (exc. IFRS Expenses)	147.2	139.4	137.7	166.8	207.1
Plus SBC	0.0	11.6	11.1	(0.5)	0.1
Minus 16 IFRS	(33.1)	(41.5)	(45.7)	(54.2)	(62.9)
Adjusted and Other EBITDA Pre 16 (exc. IFRS SBC
Expenses)	114.1	109.5	103.1	112.1	144.3
Onetime bulk operation	(14.4)	0.0	0.0	0.0	0.0
Adjusted Onetime bulk EBITDA Pre 16 (exc. IFRS
operation, Other and Expenses) SBC	99.7	109.5	103.1	112.1	144.3
of excluding onetime bulk operation Revenue, %	16.4%	15.0%	12.9%	13.2%	14.4%

Thank You