Maytronics Ltd.

Investor Presentation • Dec 2, 2020

כנס משקיעים 12/2020

מצגת זו אינה מהווה הצעה לרכישת ניירות הערך של החברה או הזמנה לקבלת הצעות כאמור, והיא נועדה אך ורק למסירת מידע. המידע הנכלל במצגת איננו מהווה ייעוץ, המלצה, או חוות דעת באשר לכדאיות ההשקעה בניירות ערך של החברה.

אומנם ננקטו אמצעים סבירים על מנת להבטיח שהמידע הכלול במצגת אינו מטעה נכון למועד המצגת, אך החברה אינה מתחייבת כי הוא מדויק או שלם.

כמו כן, המידע הכלול במצגת מבוסס על מידע מדיווחיה הפומביים של החברה, אך הוא עשוי להיחשב ככזה שמוצג באופן שונה מהאופן שבו הוא הוצג בדיווחיה של החברה ו/או ככולל מידע שלא הוצג בדיווחים כאמור, ולפיכך למען הזהירות, נמסר העתק מן המצגת כדיווח מיידי לציבור.

מצגת זו והמידע הכלול בה לא נועדו להחליף את הצורך בעיון בדיווחים שפרסמה החברה לציבור, ובכל מקרה של אי התאמה בין המידע הכלול במצגת למידע שהוצג בדיווחיה של החברה –האחרון יגבר.

אומדנים והערכות שונים המובאים במצגת )כגון לגבי נתח שוק, כמות בריכות, מחירי מוצרים שונים( הינם אומדנים פנימיים של החברה, אין בידיה נתונים רשמיים או בדוקים, והם מבוססים על נתונים המתקבלים מהמפיצים של החברה ו/או משיחות עם גורמי מקצוע בשוק ו/או בתערוכות בינלאומיות, ולכן אינם מידע מוסמך או מדוייק.

המצגת עשויה לכלול מידע צופה פני עתיד, כהגדרתו בחוק ניירות ערך, התשכ"ח- .1968 מידע כאמור כולל, בין היתר, תחזיות, יעדים, הערכות ואומדנים של החברה, המתייחסים לאירועים או עניינים עתידיים, אשר התממשותם אינה וודאית ואינה בשליטת החברה.

מובן שמידע צופה פני עתיד אינו מהווה עובדה והוא מבוסס רק על הערכות סובייקטיביות של החברה. מידע צופה פני עתיד עשוי, מטבעו ככזה, שלא להתממש כולו או חלקו או שיתממש בצורה שונה מזו שנחזתה, ומידע כאמור, הינו בלתי וודאי, בלתי ניתן להערכה מראש, ולעיתים אף אינו מצוי בשליטת החברה. התממשותו או אי התממשותו של המידע צופה פני עתיד תושפע, בין היתר, מגורמי סיכון המאפיינים את פעילות החברה, וכן מההתפתחויות בסביבה הכללית ובגורמים חיצוניים המשפיעים על פעילות החברה, אשר הינם בלתי ניתנים להערכה מראש ואשר אינם נמצאים בשליטת החברה.

תוצאותיה והישגיה בפועל של החברה בעתיד עלולים להיות שונים מהותית מאלו שהוצגו במצגת.

כמו כן, תחזיות והערכות צופות פני עתיד מתבססות על נתונים ומידע המצויים בידי החברה במועד המצגת, והחברה אינה מחוייבת בעדכון או שינוי כל תחזית ו/או הערכה כאמור על מנת שישקפו אירועים או נסיבות שיתרחשו לאחר המצגת, ואינה מתחייבת לעדכן את המצגת. כל הזכויות במצגת ונתוניה שמורות לחברה.

– Q3/9 Months Summary Eyal Tryber CEO

People stayed at home

Public pool closures

"Staycation" instead of travel

More backyard leisure time

Great weather - long pool season

Maytronics' 35 years of infrastructure investment became a key success factor

Well balanced, well established, global presence and reach

Strong brand

Retail strength and loyalty

Products that are relevant to homeowners

9 Months Business Highlights

Commercial

Management

and control

French launch press coverage

Poseidon by Maytronics New Alarm Device

Connected watch for drowning alarm display

Swimeer unusual behavor signaling before the drwoning occures.

Stereovision analysis

Detection of High-frequency resurfacing Detection of vertical up/down motion in attempt to keep the front of the head out of the water

Poseidon by Maytronics Drowning Detections Update

+50 drowning detections in public swimming pools and examples of drowning detections from summer 2019 to summer 2020

We are grateful for an EXCEPTIONAL SEASON

EFFORTS

One year earlier than expected we are happy to announce that we will reach sales of over ILS 1 Billion by the end of 2020

2020 – Q3/9 Months Summary

Eyal Tryber CEO

Meni Maymon -CFO

Q3 2020 Financial Summary NIS K

	Q3 2020	Q3 2019	Reported % Growth	Ex. FX impact % Growth
Revenue	252,882	164,909	53%	54%
Gross Profit	103,135	64,770	59%	58%
Operating Profit	43,246	17,556	146%	140%
Net Profit	29,406	14,848	98%	117%

Key Focus:

• Continues increase in demand for robots for private pools in all territories.
• Accelerated growth rate of online sales, and a good weather in almost all territories in the north hemisphere.

9 Month 2020 Financial Summary NIS K

	9M 2020	9M 2019	Reported % Growth	Ex. FX impact % Growth
Revenue	944,491	753,344	25%	29%
Gross Profit	396,640	317,684	25%	31%
Operating Profit	217,048	161,037	35%	46%
Net Profit	170,635	135,671	26%	41%

Profit and Loss for the years 9M 2015-9M 2020 NIS in thousands

Sales by Segments Q3

	Q3 2019	Q3 2020
Private Pools	126,823	203,914
y/y	16.9%	60.8%
% of Revenues	76.9%	80.6%
Commercial pool	16,984	14,513
y/y	5.0%	(-14.5%)
% of Revenues	10.3%	5.8%
Safety & Others	21,102	34,455
y/y	6.1%	63.3%
% of Revenues	12.8%	13.6%
Total Revenues	164,909	252,882

Sales by Segments 9M

	9M 2019	9M 2020
Private Pools	626,366	811,783
y/y	14.9%	29.6%
% of Revenues	83.1%	85.9%
Commercial pool	61,797	54,459
y/y	3.3%	(-11.9%)
% of Revenues	8.2%	5.8%
Safety & Others	65,181	78,249
y/y	7.4%	20%
% of Revenues	8.7%	8.3%
Total Revenues	753,344	944,491

9 Month/Q3 2020 Regional Growth %

Gross Profit Margin Analysis – Q3 2020

Gross Profit Margin Analysis – 9 Months 2020

42.2%	0.5%	0.5%	0.4%				42.0%
				-0.8%	-0.3%	-0.4%
9M/2019 GP%	BOM cost reduction	Production reacher	Overhead utilization	Exchange rate	Lower commercial mix	Other	9M/2020 GP%

Exchange Rates Impact on 9 Months 2020 Results

	Local Currency	NIS in Prior Period FX rate	Actual NIS	FX Impact	FX rate diff
\$	119,750	427,941	417,675	-10,266	-2%
€	109,576	443,552	427,594	-15,958	-4%
AUD	34,886	85,927	82,761	-3,166	-4%
NIS	16,462	16,462	16,462	-
Total Revenue		973,881	944,491	-29,390
\$	94,135	335,706	328,002	-7,703	-2%
€	9,399	37,723	36,775	-947	-3%
AUD	5,086	12,586	11,949	-637	-5%
NIS	171,124	171,124	171,124	-
Total Cost Of Good Sold		557,140	547,851	-9,289
FX Impact on Gross Profit	-20,101
FX Impact on Operating Profit	-18,721

OPEX 9 Month: R&D NIS K

	Robots	WT	Other	Total	% Change
Total R&D Expenses	24,279	17,307	1,945	43,531	+29.6%
Capitalizing	(10,552)	(10,188)	-	(20,740)	+35%
P&L R&D Expenses	13,727	7,119	1,945	22,791	+24.8%

Key Focus:

• Continued investments in development of Robots and water technology system.
• Additional employees in both Robotic and Water Technology
• increase in Water Technology Capitalization.

OPEX 9 Month: S&M NIS K

	9M 2020	9M 2019	% Change
Payroll	46,036	42,708	+8%
Advertising and sales promotion	27,345	29,656	-8%
Freight & Depreciation	16,271	6,748	+141%
Total	89,652	79,112	+13%

Key Focus :

• Additional human resources in most territories
• Decrease in the costs of overseas travel, seminars and conferences
• Increase in Freight cost and depreciation (PPA and IFRS 16)

OPEX 9 Month: G&A NIS K

	9M 2020	9M 2019	% Change
Payroll	36,408	30,386	+20%
IT Expenses	6,089	3,809	+60%
Professional Fees	6,817	4,982	+37%
Depreciation	4,619	3,970	+16%
Travel Expenses	535	1,491	-64%
Office Expenses	2,731	2,479	+10%
Other	9,948	12,156	-18%
Total	67,149	59,273	+13%

Key Focus :

• Additional human resources (IT, HR,FIN) and Option Plan to support the strategy
• Increased IT Expenses to support infrastructures.
• Acquisition of Bunger & Frese Cost
• Decrease in the costs of overseas travel
• Decrease in other cultural events.

OPEX % Out of Total Sales

Additional Financial Figures NIS (K)

	9M 2020	9M 2019	% Change
EBITDA	251,133	190,924	+31.5%
Net Cash flows from Operating	242,568	158,722	+53%
Operating Working Capital	232,536	240,160	-3%
Customer Days	70	71
Inventory Days	129	159
Supplier Days	53	55

CAPEX 9 Month NIS K

	9M 2020	9M 2019	% Change
Leasehold Improvements	9,448	6,536	+45%
Machinery equipment & molds	10,822	7,988	+35%
Furniture & office equipment	2,917	2,645	+10%
Motor Vehicles	315	356	-12%
Total	23,502	17,525	+34%

Intangible Assets NIS K

	Development costs	BF PPA		Other	TOTAL
30 Sep 2019	63,839	-		5,065	68,904
Additions	25,831	42,431		10,026	78,288
Amortization	(8,087)	(499)		(1,833)	(10,419)
Translation adjustments	(51)	1,559		392	1,900
30 Sep 2020	81,532	43,491		13,650	138,673
		BF PPA			Other
		Distribution agreements	7,246	Software
		Customer relations		Trademark
	Goodwill		6,260 29,985	Ozone
			43,491

The continuing journey towards 2025

Eyal Tryber

Future outlook

Continuous investment in long-term vision and strategy

"Feet on the ground" Focus on meeting the company's objectives

Sustain the opportunity for profitable growth

Stay relevant

Maytronics Vision

Leading the way to make your pool water exceptional for pure enjoyment

Human Resources

Anat Meltzer, Chief Human Resources Officer

Operation & Supply Chain Division

Guy Liphshits, Chief Operating Officer

New Warehouse - Yizrael

4 Buildings – Dalton extension

Key focus: 2 steps ahead approach

• Production sites capacity planning

• Our investment will enable us to grow the capacity by ~85% to support demand as we climb towards 2025

Projects:

• New mobile racks warehouse
• New WT production site
• New electronics production site
• Move to autonomation
• JIT, Lean philosophy
• Quality first
• Industry 4.0 initiatives
• Data & analytics-base decision making

Quality

Key Focus:

• Automate testing Data & analytics
• Embed Learning & continuous improvement culture
• Sustain engineering quality ongoing projects
• A-Z onsite quality control
• Suppliers quality process and collaboration & STS (ship to stock) qualifications
• R&D quality requirement definitions and control process (QFD/FMEA)

Finance

Key Focus:

• Build the financial infrastructure and tools to support new business models
• Adopt digital and automation tools and process
• Global tax process
• Working capital to support the Group
• Risk analysis and regulations
• Advanced budget control process
• Utilize Government incentive programs
• Data and analytics

IT Division

Technology & Solution Division + Robots R&D Center

Amit Caspi, Chief Solution Officer (Joined Maytronics in February 2020)

Strengthen the organization and implement agile, incremental development cycles & process aimed to define, plan and deliver on time

Water Technologies BU & R&D Center

Maytronics Innovation Philosophy

Breakthrough Technologies By Maytronics Innovation Center

Continuous Product Evolution Ongoing support to win the GTM

Business Division

Biz Division initiatives & journey towards 2025

Sharon Goldenberg

Our Mission

Define and Execute the vision & strategy

Maximize the business opportunity

and sustain profitable, double digit growth

Penetrate to the Blue Ocean

Key Mission Enablers

Organization: Human Capital to Sustain Growth & Profit

Regions: Foot on the ground Global Strategic Functions

• Marketing
• Customer Care Center
• Business Operations
• New Business Models

Synergies

How we work between the regions and the functions –

The regions has local functions

Synergies

How we work between the regions and the functions –

The regions has local functions

Key Mission Enablers

Blue Ocean Outlook

Total Estimated Pool Market 26.2M Pools

74%

26% Robotic Cleaners

Pools without robots

Blue Ocean Outlook - Redefined

Total Estimated Pool Market 26.2M Pools

Pools without robots

15%

Robotic Cleaners

11%

Replaced old cleaners

Blue Ocean Outlook - Redefined

Total Estimated Pool Market 26.2M Pools

85%

Pools without robots

15%

Robotic Cleaners

Pool & Robotic Cleaner – Estimated Market Size Pools Robotic Cleaners

26.2M pools in 2020 (estimated)

There are 3.9M Electrical cleaners in operation (estimated) Based on our analysis, it is estimated that Electrical Cleaners are being

replaced every 2-8 years – Depends on the territory, the model and the manufacturer

~40% – 50% from the Electrical cleaners that are being sold are replacement

Out of 26.2M pools in 2020, 7.3M are not within our focus in the years to come

3,900,000	7,300,000	15,000,000
Have	Not in	Realistic market
robots	near-term tocus	for beginning of 2020

3,900,000 Install base WW (out of the 26.2M)

Electrical Cleaners are being replaced every 2-8 years

15,000,000 Realistic focused WW Blue Ocean

GTM – B2B & B2C Digital Transformation

Consumer Journey Touchpoints

Brand Loyalty

POS Presence & Influence

Technological Innovation

Product Connectivity

Awareness

Research presence

Star Rating nurturing

maintain our install base

Consumer Journey Touchpoints

Brand Identity

Get the right feeling about our brand

Customer Care

B2B Service B2C Service

One side B2B service (שרות תחנות( Second side B2C service (like the picture) Exceptional Service

This slide needs to be build:

Symbiotic Relationship

Happily Grant:

Consumer support Self service tools (FAQ) Partners support & training Advise – Before & after purchase

Humbly Get:

Brand loyalty happier customers Voice of the Customer (Interactions, Surveys)

Maytronics U.S.

Franck D. Sogaard President & GM

Maytronics U.S. Subsidiary Summary

2 Things to Remember from MTUS

1. Fiercely Competitive 2. Laser Focused on Our Mission

Maytronics U.S. Key Functions

Sales Customer Marketing

Care

Product Support

Warehouse & Logistics

I T

Finance

Human Resources

Key Investment Areas for the U.S.

Blue Ocean Business Development

Digital Transformation

Customer Care

Infrastructure (warehousing / service centers / IT)

People

Sales Structure: Prior Years

Sales Structure: Going Forward

Maytronics U.S. Key Trends in U.S. Market

2020: Election Year

Pool Market Key Trends

Tailwinds:

Corona Virus E-Commerce Population migration

Automation Energy and Eco-Friendliness

Aftermarket

Pool Construction Trend

Slow recovery

Residential pool construction growing but not yet to pre-recession levels

New residential inground pool construction

Despite Moderate Growth Rates - Big Opportunity with Existing Pools

Maytronics U.S. U.S. Cleaner Market Summary

Overall U.S. Pool Market

5,400,00 0 5,000,00 0 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Pool Types U.S. Pool Types In-Ground Above Ground Commercial

U.S. Pool Cleaning by Product Type

Sources: PK Data and Maytronics Estimates

5-Year Product Trend vs. Maytronics U.S. Sales

Sources: Maytronics Estimates

9 Month Channel CAGR 2015 - 2020

Commercial Sales Summary

9 Month 2020 vs. 9 Month 2019 Sales Results

2019 2020

Maytronics U.S. The Blue Ocean Opportunity

Let's Define What the U.S. "Blue Ocean" Entails

SUNBELT E-COMMERCE

Maytronics U.S. Sunbelt Summary

42% of Maytronics U.S. "Blue Ocean" is in 4 States

Technology Profile of the Sunbelt

Maytronics U.S.: E-Commerce Growth Trajectory

Sunbelt Growth Drivers

Leveraging e-com sales data to convert dealers

Pool Builders

Investment in people

Digital marketing

Sharpened marketing message

Maytronics U.S. E-Commerce Summary

U.S. E-Commerce Trends in the U.S. Economy

U.S. E-Commerce Penetration Growth Comparison: U.S. E-Commerce vs. Total Retail

Source: Internet Retailer, U.S. Commerce Department

The E-Commerce Pool Market

Marketplaces Pool.com Local.com

Why Important to Focus on E-commerce?

E-commerce growth

Customer Acquisition

Gross Margin

Analytics & Ad Spending

Analytics Dashboard Example

Maytronics U.S. Strategy Execution

Maytronics 2025 Strategy

Translating Global Strategy into U.S. Execution

Deploy Global Marketing Initiatives

E-Commerce Marketing

Elevate Our Brand with Retail Merchandising

Drive Retail Store Traffic with Digital Marketing

Digital Campaign

Translating Global Strategy into U.S. Execution

Dealer Programs in High Pool Count Areas

On- and Offline Collateral & Training

Sunbelt Penetration Focus

New Brand Elevation Through Merchandising

Translating Global Strategy into U.S. Execution

IoT Robotic Cleaners

Digital Transformation

Preparation for Water Technologies

Maytronics U.S. We Is Just Getting Started…

We Are Just Getting Started…

Significant Growth Opportunity: "Blue Ocean"

WE are Leading the Way, Growing the Robotic Cleaner Segment

Strong MTUS Team, and We Will Continue to Invest in People

Outstanding Customer Partnerships & Passion Across the Board

Example of Our Partnership Approach

POOLCORP's strategic distribution relationship with Maytronics is key to our company's focus on the consumer demand for technology-driven products. As one of our VIP Vendors, Maytronics' industry-leading product lines exemplify innovation at its finest.

Peter Arvan, CEO PoolCorp

We're Just Getting Started