Novolog (pharm-up 1966) Ltd.

Investor Presentation • Aug 10, 2022

August 09, 2022

Q2-2022 Results

Novolog Group

Forward Looking Statement

The presentation does not constitute a recommendation, advice, opinion or an offer to acquire securities of Novolog (Pharm Up 1966) Ltd (the "Company"), or an invitation to offer, and is intended solely for informational purposes. The information included in this presentation is a summary only and does not exhaust all the information on the Company and its business. This presentation was prepared by the Company as a general presentation about the Company for the sake of convenience only and is not intended to replace the need to review the Company's full reports as reported to the ISA via the Magna distribution site including the Company's immediate reports, and the Company's Periodic Report for 2021 and for the second quarter of 2022 ("Company's Reports") and does not replace independent examination and personal advice according to the unique needs of each investor.

This presentation includes forecasts, estimates, assessments and other information pertaining to future events and/or matters, whose materialization is uncertain and is beyond the Company's control, and which constitute forwardlooking information, as defined in the Securities Law, 1968. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Such information includes, inter alia, revenue, profit and EBITDA forecasts.

Forward-looking information is based solely on the Company's subjective assessment, based on facts and data regarding the current condition of the Company's business and macroeconomic facts and figures, all as known to the Company at the time of preparation of this presentation. The materialization or non-materialization of the forward-looking information will be affected, inter alia, by risk factors characteristic of the Company's activity, as well as by developments in the general environment, in market conditions and in external factors affecting the Company's activity which are beyond the Company's control. Considering the above, the Company's actual results and achievements in the future may differ materially from those presented at this presentation.

The Company does not undertake to update and/or change any such forecast and/or assessment to reflect events and/or circumstances postdating this presentation, including the Company's plans and strategy which may change, from time to time, in accordance with the decisions of the Company's Board of Directors.

The presentation may include information and/or data presented in a different manner and/or characterization and/or editing and/or segmentation than that presented in the Company's Reports. In any case, this presentation is not intended to be a substitute for the Company's Reports, and it is advised to refer to these Reports. In any event of inconsistency between what is stated in this presentation and what is stated in the Company's Reports required by law, what is stated in the Company's Reports shall prevail.

Company Profile Delivering Health

Novolog operates to improve the field of healthcare in Israel and adapt it to the challenges of the future through three key segments: Healthcare logistics, Homecare and personalized healthcare and Medical information technological tools

Founded in 1966

Listed on the Tel-Aviv Stock Exchange in 2017 (TA125)

Major stakeholders: Udi Puzis, Mori Arkin, Eli Dahan and institutional investors

• Approximately 800 employees
• Strong, stable, debt-free financial balance

Dividend distribution policy on 70% of net profit

Our Vision is Based on Our Values

Creating the future of healthcare

The Novolog Group is committed to be a leading healthcare services group in Israel and to support patients, physicians and healthcare organizations in Israel and internationally through our innovative, advanced, technology-based basket of products and services that are adaptable to trends and anticipated changes in the healthcare services sector

Strategic Goals Well-defined Strategy to Drive Growth

Operate complex and supplementary logistics services for medicines, medical devices, and clinical trials

Reduce public healthcare organizations' costs, thereby helping them improve the quality of the services that they provide

Improve the public's access to high-quality, innovative, and personalized healthcare services

Q2-2022 Results | August 09, 2022

Complex logistics services including import and distribution of pharmaceuticals and medical devices, as well as clinical trial logistics management

High quality medical care based on innovation, compassion, and personalized care

Medical information technological tools, and digital services to patients, physicians, and medical institutions

Logistics Division

Senior Strategic Logistics Partner of Global Pharma and Medical Device companies

Novolog group is a senior strategic logistics partner of global pharma companies operating in Israel. Novolog uses state-ofthe-art technologies to operate a variety of services for these companies, while complying with the most stringent quality assurance procedures

The logistics division allows healthcare professionals to do their best work by providing a comprehensive set of customized advanced supply chain, management services and solutions

Pharma logistic services

Specializes in storage, distribution and logistic services for the pharmaceutical, Medical Device and narcotics industries and operates a state-of-the-art logistics center

Clinical trial logistical services

While adhering to the strictest quality control procedures, Novolog delivers the medication and medical devices for hundreds of clinical trials each year, including comprehensive logistical support

Supplementary pharma and biotech services

Registration, regulatory processes, translation, Responsible Pharmacist services, national-level pharmacovigilance, clinical trial application submission, and more

EO sterilization

Novolog has sterilization chambers in a range of volumes, all using advanced EO sterilization technologies, specially designed for the medical device industry

Healthcare Division

Improving Quality of Care

Novolog's Healthcare Division works with hospitals, leading insurance providers, pharmaceutical companies, and all of the Israeli national HMOs to provide technologybased healthcare services to patients in their homes and in the community

Hundreds of patients intubated at home

Hundreds

of home medical visits per month

Dozens

treatment programs for chronically ill patients

Dozens

of patients in at-home hospice care

Improving Healthcare Access and Convenience

Home Care Services

At-home hospitalization, ambulatory homecare, providing respiratory care, sleep medicine services.

Healthcare Management

Building and operating customized management systems for the insurance sector and manage patient support programs

Distribution

Sales and distribution of medication to institutional customers

National Healthcare Projects

Partnerships with national organizations

Healthcare Division Services

Making Healthcare Personal

Personalized Concierge Medicine

Established Israel's first personalized healthcare management center, providing comprehensive testing and expert treatment services in clinics and in patients' homes., as well as operating Israel's largest private gastroenterology, hepatology, and nutrition clinic

Advanced Ophthalmology Centers

Operates Israel's largest network of clinics dedicated exclusively to eye care and surgery, with over 50 leading ophthalmologists performing more than 10,000 surgeries per year

Full Private Laboratory Services

Manages the largest private medical laboratory in Israel, providing full laboratory services to medical and veterinary centers, private patients, research institutions, and the Israeli and international medical and biotech industries

Digital Health Division

Enabling Patient Access

Novolog's digital health division is providing patients with unprecedented access to treatment information, scheduling, and communication with care providers, giving them newfound control over their therapeutic process and their interactions with the medical system

The result: a high-quality, accessible treatment experience that goes beyond public medical care

Millions of content views per month

Thousands

of telemedicine video appointments

Millions

of visits scheduled through smart scheduling

Digital Health Division Services

Technological Tools Suitable for the New Era of Healthcare Services

Smart Scheduling platform

• Enables patient self-scheduling
• Customizable
• Minimizes no-shows

Telemedicine platform

• Video consultations
• Digital prescriptions
• Real-time file sharing

Medical content platforms

• Healthcare provider reviews
• Expert information for patients
• Forums and search features

International Healthcare

Q2-2022 Results | August 09, 2022

Growth Through Innovation

Novolog has partnered with medflex, one of Germany's leading telemedicine providers

medflex is a fast-growing telemedicine company based in Konstanz, Germany. The certified medical messenger and video consultation service enables doctors and other health professionals to communicate with patients and among each other through one seamless, intuitive, and secure platform. Its reimbursable video consultation solution is end-to-end encrypted and certified according to the guidelines by the association of Statutory Health Insurance Physicians (KBV)

The health sector in Germany is the largest of its kind in Europe and is considered one of the most promising markets with high growth-potential globally. Healthcare spending in Germany exceeds €400 Billion, in a population amounting to 83 million people. In 2019, the German parliament passed the Digital Care Act (DVG) to accelerate digitalization and innovation within the German healthcare market. The act also paves the way to broaden usage and reimbursable of digital health applications, such as medflex' telemedicine solution

The last year has led to a steep increase in the usage of video consultations among physicians. Thus, telehealth has rapidly evolved from a nice-to-have into a necessity for doctors as well as patients

Financial Overview

Q2-2022

Q2-2022 Results | August 09, 2022

• In July 2022, the company acquired 60% of the shares of Gsap in the amount of NIS 33 million and an additional NIS 12 million contingent on performance
• In May 2022, the company exercised a call option to purchase additional shares of Medflex in the amount of EUR 3 million
• In March 2022, an option was exercised to purchase additional 24.5% of Salus in the amount of NIS 9.8 million
• In February 2022, the company acquired 55% of the shares of Ein Tal in the amount of NIS 32 million

Gsap is an Israeli company providing comprehensive quality control and validation services, clinical trial services and supplementary services to biomed companies and to the pharma, medical device and life sciences industries throughout the life cycle of medical products. Gsap provides broad solutions encompassing all aspects needed in order to ensure that medical companies meet the requisite standards for developing, manufacturing and marketing their solutions

Gsap is considered the leading consulting firm in Israel for the implementation of regulatory, clinical and quality control processes in the pharma and medical device sector, in addition to the services that Gsap offers in the field of clinical trials, which encompass the entire research management environment and are designed to ensure the success of the clinical trial

Under its management, Gsap has completed dozens of regulatory submissions for innovative medicines and medical devices. We intend to take action to expand the services offered by Gsap and to maximize the synergies between Novolog's current activities and capabilities and Gsap's current and future operations

H1-2022 Results Excluding IFRS16

	H1-2022	H1-2021	% Change
Revenues	736.8	625.7	17.7%
Gross Profit	87.2	74.0	17.8%
Operating Profit	37.7	34.0	10.9%
Net Profit (*)	27.6	24.6	12.1%
Adjusted EBITDA (**)	56.3	49.6	13.6%

(NIS millions)

GROSS PROFIT +18% OPERATING PROFIT +11% ADJUSTED EBITDA

+14%

(*) Net Profit in the reporting period after adjusting equity losses is NIS 29.4 million, increase of 17%

Q2-2022 Results Excluding IFRS16

	Q2-2022	Q2-2021	% Change
Revenues	361.4	309.7	16.7%
Gross Profit	42.8	36.4	17.6%
Operating Profit	17.9	16.4	9.0%
Net Profit (*)	13.5	11.2	20.5%
Adjusted EBITDA (**)	27.5	24.6	11.9%

(NIS millions)

GROSS PROFIT +18% OPERATING PROFIT +9%

ADJUSTED EBITDA +12%

(*) Net Profit in the reporting period after adjusting equity losses is NIS 14.5 million, increase of 23%

H1-2022 Results Including IFRS16

	H1-2022	H1-2021	% Change	GROSS PROFIT
Revenues	736.8	625.7	17.7%	+18%
Gross Profit	87.4	74.2	17.8%	OPERATING PROFIT +9%
Operating Profit	39.2	35.9	9.2%
Net Profit (*)	25.7	24.0	7.0%	ADJUSTED EBITDA +13%
Adjusted EBITDA (**)	67.4	59.8	12.8%

(NIS millions)

(*) Net Profit in the reporting period after adjusting equity losses is NIS 27.5 million. Net Profit in the previous period after adjusting capital gain from IFRS16 influence is NIS 23.4 million, increase of 17%

Q2-2022 Results Including IFRS16

	Q2-2022	Q2-2021	% Change
Revenues	361.4	309.7	16.7%
Gross Profit	42.8	36.4	17.6%
Operating Profit	18.5	16.7	10.8%
Net Profit (*)	12.5	10.5	19.6%
Adjusted EBITDA (**)	33.3	29.5	13.0%

(NIS millions)

GROSS PROFIT +18% OPERATING PROFIT +11%

ADJUSTED EBITDA +13%

(*) Net Profit in the reporting period after adjusting equity losses is NIS 13.5 million, increase of 23%

H1-2022 Results By Segment Excluding IFRS16

(NIS millions)

	Revenues			Adjusted EBITDA
	H1-2022	H1-2021	%	H1-2022	H1-2021	%
Logistics	616.8	553.2	11%	35.5	31.5	13%
Health Care (*)	107.8	64.2	68%	16.2	14.2	14%
Digital Health	13.1	12.4	6%	4.6	3.9	19%
Intercompany Transactions	(0.9)	(4.1)		-	-
Total	736.8	625.7	18%	56.3	49.6	14%

(*) AML company is consolidated as of the second quarter of 2021, Gastromed company is consolidated as of the fourth quarter of 2021 and Ein Tal company is consolidated as of the first quarter of 2022

Q2-2022 Results By Segment Excluding IFRS16

(NIS millions)

	Revenues			Adjusted EBITDA
	Q2-2022	Q2-2021	%	Q2-2022	Q2-2021	%
Logistics	308.7	268.1	15%	17.9	14.5	23%
Health Care (*)	47.0	36.9	27%	7.2	7.8	(8%)
Digital Health	6.2	6.3	(2%)	2.4	2.3	7%
Intercompany Transactions	(0.5)	(1.6)		-	-
Total	361.4	309.7	17%	27.5	24.6	12%

(*) Gastromed company is consolidated as of the fourth quarter of 2021 and Ein Tal company is consolidated as of the first quarter of 2022. During the reporting period, there was a decrease in the profit of the health care division as a result of changes in the competitive environment of the respirators activity as well as a decrease in the profit of laboratory services as a result of termination of a project in the field of Covid vaccines

H1-2022 Balance Sheet Including IFRS16

30/06/2022	31/12/2021
199	239
1,958	1,742
642	546
1,946	1,689
210	169
444	430
2,600	2,288

(NIS millions)

CASH NIS 199M

EQUITY NIS 444M

DEBT NIS 2.7M

Growth Engines

Expanding personalized healthcare services Leverage Digital Health Division Services Adding more services for the pharmaceutical industry Entering new international markets Developing additional home care services for the institutional market Entering new market segments

Long Term Guidance

Uniquely Positioned To Deliver Value To Stakeholders

As part of our long-range growth plan, we estimate that Novolog will double its Adjusted EBITDA (Excluding IFRS16) with respect to 2021, within 4 years, mainly from its activities in Israel

Strong financial performance

Novolog has a consistent track record of delivering strong and stable financial performance

Diversification

Future growth will be fueled by all three divisions

Responsible approach

The Company is not leveraged and invests responsibly. The Group strengthened its capital structure last year

Capital allocation priorities

Investing for continued growth and maximizing value to our shareholders

Reinvest for growth

Investing in processes and ventures that lead to organic growth and generate higher profits

Acquisitions

Acquisitions that support our strategies

Returns to our shareholders

Dividend policy – 70% of the net profit

Thank you!

info@Novolog.co.il | www.Novolog.co.il