NextFerm Technologies Ltd. — Investor Presentation 2021

Aug 31, 2021

NextFerm Technologies

Corporate Presentation August 2021 TASE: NXFR

Changing The World With Better Nutrition

*English translated version from the official Hebrew presentation

Disclaimer

This presentation is intended for the provision of non-comprehensive information for the sake of convenience solely. You are hereby referred to the full prospectus and immediate and periodic reports filed by the company with the Israel Securities Authority and the Tel Aviv Stock Exchange Ltd. for information regarding the Company's activities and the risks entailed thereby, including warnings regarding forward-looking information, as defined in the Securities Law, 5728-1968, that is included therein. In case of any discrepancy between the information contained herein and the information contained in the official reports of the Company to the Israeli Securities Authority and the Tel Aviv Stock Exchange, the information recorded in such reports shall prevail.

This presentation may include forward-looking statements and forward- looking information, including, but not limited to developments, outlooks, projected economy measures, etc.. Such forward-looking statements and information are based on the current assumptions, intentions and plans of the Company. The forward-looking information in the presentation is subject to risks and uncertainties and may not materialize, in whole or in part, or may materialize significantly differently than as predicted, or may be affected by various factors, including factors that are not under the Company's control or such that cannot be estimated in advance. The Company makes no representation or warranty of any kind with respect to such information. For the avoidance of doubt, it is clarified that the Company does not undertake to update and/or modify the information included in this presentation to reflect events and/or circumstances occurring after the date of preparation of the presentation.

This presentation does not constitute an offer, invitation or recommendation to purchase, sell, subscribe for or do any transactions in the securities of the Company, in any jurisdiction, and the information provided in this presentation is not a basis for the making of any investment decision, nor a recommendation or opinion, nor a substitute for the discretion and independent analysis of any potential investor.

This presentation includes information from public sources, which was not independently examined by the Company and the Company is not liable as to its accuracy.

Experienced team in the food Industry

ProteVin™ Revolutionary Protein

Yeast Derived Vegan Protein Animal-like Nutritional Value Neutral flavor (unlike typical plants-based proteins)

Commercialized Products

Significant Revenue and Profit Potential

Experienced Team in the Food Industry

Company management is comprised of former Senior Management of Enzymotec, which developed innovative ingredients within the world of nutrition. Enzymotec reached revenues of over \$80M and went public (NASDAQ) during 2013, with a market cap of \$300M

Working Together for Over 15 Years

Yossi Ohana CFO

Former VP Finance of Enzymotec

Boaz Noy CEO and Director Former Sr. VP and Head of the BioActive Ingredients Division at Enzymotec

Yossi Peled Chairman

Former Chairman and board member of Enzymotec and Former CEO of Galam

Yoni Twito COO Former COO of Enzymotec

Arkadiy Haikin VP of Engineering Former Chief of Engineering of Enzymotec

Gai Ben Dror VP of Process Development Former VP of Process Development of Enzymotec

Elzaphan Hotam CEO of NextFerm USA

Former CEO of Enzymotec USA

Breakthrough Technology

For producing yeast-derived, innovative, functional vegan food ingredients based on:

• Non-GMO Strain improvement
• Fermentation
• Purification and extraction of food ingredients

Commercialized Products

✓ ProteVin™ : Nearing commercialization. Vegan protein with an animal-like nutritional value and neutral flavor

• ✓ Successful Industrial Pilot completed
• ✓ First PO from a US customer
• ✓ Expected commercial launch in 2022
• ✓ AstaFerm®: Novel & powerful astaxanthin antioxidant:
  • ✓ Launched in US & Canada
  • ✓ Established profitable supply chain
• ✓ 2 yeast strains: licensed to Lallemand Inc., a global leader in yeast and bacteria

Significant Revenue and Profit Potential

Based on its innovative technology and products developed and commercialized, the company expects significant revenue and profit.

The Need: In the Future, Feeding The World on Animal Protein-based Nutrition Only, Will Be Impossible

World population is continuously growing and is expected to reach ~10B by 2050(*)

The traditional livestock protein industry has a major negative effect on the environment, and is under global pressure to reduce activity and its related pollution

Therefore, animal-based food (meat, dairy, fish, eggs) wouldn't suffice to provide future demand for protein

Current market protein alternatives are plant-based proteins, which provide inferior nutritional value and "off flavor" compared to animal-derived proteins

The Business Opportunity

The alternative protein food market is estimated at around \$13B /year (*)

The alternative protein market is less than 1%

of animal-based products market

Alternative Protein Market Growth

(\*) https://www.globenewswire.com/news-release/2020/02/26/1991190/0/en/Alternative-Proteins-The-Market-at-the-Cusp-of-Multi-billion-Dollar-Growth.html (**) https://www.globenewswire.com/news-release/2020/10/20/2110853/0/en/Global-Food-and-Beverages-Market-Forecast-to-Grow-to-6111-1-Billion-in-2020-at-a-CAGR-of-2-9-from-2019.html

Comprehensive Business Strategy

Business model:

Stage 1

Commercialized products that will become a growth and profit generating engine

Stage 2

Launch of ProteVin™ revolutionary vegan protein

Stage 3

Expansion of protein uses to new applications and territories: Dairy and Meat substitutes and Powder Formulas for the Infant, Well being and Sports nutrition markets

Stage 4

Develop and Launch additional precise fermentation-based protein products

Fermentation The Efficient Way to Produce the Food of the Future

Fermentation is the technology which grows yeast on industrial scales. Yeast and its derived products are an important source for alternative proteins.

Fermentation The Efficient Way to Produce the Food of the Future

The Future of Proteins Starts Here

Vegan Yeast-based Protein

Advantages:

• Neutral flavor and taste the most important value for consumers
• Animal-like nutritional value; Non-GMO
• Broadly applicable: dairy and meat substitutes & • Powder formulas
• Competitive pricing
• Sustainable
• Short time to market
• No allergens or impurities
• Regulation is open in the USA, Europe • and other territories

The Best Vegan Alternative

Protein Source	ProteVin™	Whey	Soy	Pea & Rice
Vegan Source	+	-	+	+
No Allergens/impurities	+	-	-	-
Sustainability	++	-	+	+
Taste & Flavor	++	++	+	-
Amino Acid Composition (AA)	++	++	-	-
Digestibility	++	++	+	+

development…."

"…The Protein produced in the industrial pilot is

Well-done for the successful scale-up…."

wonderful, without off flavor, and great dispersibility.

"…. I tried out the sample today and really liked it. It was

"…I tasted both already….. both have clean flavor…"

- US sports nutrition protein brans owner and subcontractor -

essentially tasteless which is perfect for product - Innovative nutritional products company

- Israeli formula producer

ProteVin™- Initial Feedbacks From Key Accounts

"…The Protein has no flavor, reminding of Casein and disperses well in water…"

- Large Israeli-based food manufacturer

"….. You were right I am a huge fan...."

- Plant-coffee creamers brand -

"….. The taste was much better than the other yeast protein I have tried…"

- A leading Well-Being brand -

Company Target Market: Vegan Protein Powders An essential source for all animal alternative products

Vegan protein powders market (B2B)

\$2.2B )*( Annual Sales 9.5% Annual Growth

ProteVin™ - Milestones

Fundamentals For Success

Production & Sales infrastructure

Technology

Our Technology – The Key for Value Proposition

Yeast improvement (Patented, Non-GMO)

Improvement of yeast characteristics for either elevated expression of specific metabolites, stress resistance, and yield

Process optimization for economical production of the improved strain biomass

Fermentation Separation & Purification SCALE-UP

Development of efficient purification process for obtaining the desired

supplement

ingredients applicable to food or dietary

Implement the fermentation and purification processes to full production scale

Patents and Regulation

	NextFreeze™	Astaferm®	ProteVin™
Patents	EU: Granted for strain Under evaluation in additional territories	PCT filed for Strain and for process composition	Under work
Regulation	Open for global marketing	Open for marketing in the US (Self GRAS) and in Canada	Open for marketing in US, EU and other countries

AstaFerm® – Yeast-based Astaxanthin The Strongest Antioxidant in Nature, for The Dietary Supplement Market

• For the first time, a flavorless & odorless astaxanthin product, with a competitive price point enables market growth through expansion
• Commercial sales in the USA
• Profitable and efficient supply chain

• Market potential with user expansion
• Current market (mainly soft-gels )

AstaFerm® - Status and Potential

Launched in the USA (2020)

By several dietary supplement companies including leading market brands

Business progress (2021)

• Launched in Canada
• Additional launches are expected in US & Canada
• Launch of gummy product for immune system based on Astaferm®
• Expansion to new applications such as:
  • Powder Water dispersible for drinks and food applications
  • Oil for soft-gels

Financial Information

\$23M Raised (2014-2021)

Market TASE IPO (January 2021): Raised \$11M, Market cap of \$33M Former Equity Round (April 2019): Raised \$3.6M, Market cap of \$17.5M

B2C 2021 Main Investors

Cider Holdings, Orgad, Arancia, Yitong Merage VC Phoenix-Excellence, More investments

Use of proceeds 2021-2022

• ✓ ProteVin™ Commercial launch in the US, creating demands, orders and initial supplies
• ✓ AstaFerm® accelerate sales in US & Canada and launch in additional territories
• ✓ R&D to support cost improvements, products growth, expansion of use and IP

Financial data

in USD thousands	Q2/2021 YTD	Q2/2020 YTD	2020	2019
STATEMENT OF OPERATION
Net Revenues	9 1	-	9 5	-
Profit Gross	5	-	1 9	-
Operating Loss	(2 156) ,	(1 500) ,	(3 056) ,	(3 941) ,
Market Adjusted (*) EBITDA	(1 947) ,	(1 342) ,	(2 635) ,	(3 569) ,
B2C 2021
BALANCE SHEET
Cash cash equivalents and Short term deposits ,	8 265 ,	368 1 ,	716	2 008 ,
Working Capital	686 5 ,	(2 106) ,	(4 195) ,	(1 033) ,
Total Assets	10 675 ,	2 338 ,	2 163 ,	2 936 ,
Share Capital	6 180 ,	(1 876) ,	(3 927) ,	(781)
CASH FLOW
Cash used in operating activities	(2 088) ,	(1 487) ,	(2 976) ,	(830)
Cash used in investing activities	(1 304) ,	(31)	(77)	(184)
Cash used in financing activities	9 722 ,	862	761 1 ,	887 1 ,

(*) Net profit excluding Interest, taxes, depreciation, amortization and share based compensation

NextFerm - Summary

technology Platform

• Confidential -