Novolog (pharm-up 1966) Ltd.

Investor Presentation • May 30, 2023

May 29, 2023

Q1-2023 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 2022 and for the first quarter of 2023 ("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 1,000 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

Provide physicians and patients with the advanced technological resources they need for high-quality, personalized healthcare

Q1-2023 Results | May 29, 2023

5

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

Providing comprehensive quality control and validation services, regulation and 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

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

Millions of laboratory tests

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

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 private medical laboratory, 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

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Medical content platforms

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

Enhance chronic disease treatment

• Support patients in continuing treatment with advanced
• accessible programs (e.g. WhatsApp)

Financial Overview

Q1-2023

• In the first quarter of 2023, the company recorded a provision of NIS 23.2 million for the impairment of its holding in Medflex. As of March 31, 2023 the balance of the investment in Medflex is NIS 7 million. The investment in Medflex has no impact on the company's other operations or the financial stability of the group
• In May 2023, a capital raising agreement was signed, whereby the company will make an additional investment of €750,000 in Medflex, as part of a capital raising totaling €4.5 million. Consequently, once the aforementioned investment is completed, the company's ownership stake in Medflex will be 18.3%.
• The cash flow from operating activities in the first quarter of 2023 is in the amount of NIS 33.5 million, compared to NIS 21.5 million in the first quarter of 2022

Q1-2023 Results Including IFRS16

	Q1-2023	Q1-2022	% Change
Revenues	413.2	375.4	10.1%
Gross Profit	47.5	43.2	9.8%
Operating Profit	21.6	20.4	5.5%
Profit after taxes (*)	15.8	13.8	14.5%
Net Profit (loss)	) (8.8	13.0	-
Adjusted EBITDA (**)	34.2	34.1	0.2%

(NIS millions)

GROSS PROFIT +10% OPERATING PROFIT +5%

ADJUSTED EBITDA +0.2%

(*) Profit after taxes is before Equity in loss of unconsolidated affiliated companies

(**) Adjusted EBITDA is EBITDA after neutralizing expenses unrelated to the routine operation of the Company's businesses

Q1-2023 Results Excluding IFRS16

	Q1-2023	Q1-2022	% Change
Revenues	413.2	375.4	10.1%
Gross Profit	47.0	43.0	9.2%
Operating Profit	20.6	19.6	5.0%
Profit after taxes (*)	16.8	14.7	14.1%
Net Profit (loss)	) (7.8	13.9	-
Adjusted EBITDA (**)	27.9	28.8	) 3.1% (

(NIS millions)

+9% OPERATING PROFIT +5%

GROSS PROFIT

ADJUSTED EBITDA -3%

(*) Profit after taxes is before Equity in loss of unconsolidated affiliated companies

(**) Adjusted EBITDA is EBITDA after neutralizing expenses unrelated to the routine operation of the Company's businesses

Q1-2023 Results By Segment Excluding IFRS16

(NIS millions)

		Revenues			Adjusted EBITDA
	Q1-2023	Q1-2022	%	Q1-2023	Q1-2022	%
Logistics (*)	352.3	308.1	14.4%	18.5	17.6	5.0%
Health Care () (*)	55.3	60.8	) 9.1% (	7.0	9.0	(21.7%)
Digital Health	6.6	6.9	) 3.7% (	2.4	2.2	7.4%
Intercompany Transactions	) (1.0	0.4) (		-	-
Total	413.2	375.4	10.1%	27.9	28.8	) 3.1% (

(*) Gsap is consolidated as of September 2022

(**) Pronto is consolidated as of the first quarter of 2023

(***) During the reporting period, the healthcare division experienced a decrease in profits due to changes in the competitive environment of the respirator market, as well as a decline in profits from laboratory services resulting from the termination of a project related to coronavirus vaccines

Q1-2023 Balance Sheet Including IFRS16

	31/03/2023	31/12/2022
Cash	172	173
Current assets	1,846	1,719
Non-current assets	701	716
Current liabilities	1,903	1,757
Non-current liabilities	205	216
Equity	439	462
Total assets	2,547	2,435

(NIS millions)

NIS 172M EQUITY

CASH

NIS 439M

DEBT NIS 1.8M

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