Payton Planar — Investor Presentation 2018

Oct 22, 2018

Payton Industries

Company presentation Tel Aviv- October 22^nd, 2018

material prices, manufacturing partners, global economy)

Our Vision

Innovation, Design, Performance

Payton designs the best technological products that are providing the customer with a competitive advantage.

Payton Group Structure

Payton House

Payton in a nutshell

• Established in 1987, publicly traded since 1993.
• Design manufacture and sell Magnetic components.
• Publicly traded in Tel Avis since 1993. $\rightarrow$
• $\rightarrow$ Payton Planar is Publicly traded in Brussels since 1998.
• World leader in Planar Magnetics $\rightarrow$ Technology.
• Custom design, Problem solving.
• "Creativity, Innovation and Service" as the driving moto.
• Planar technology is widely used in $\rightarrow$ Automotive, Defense, Power Electronics and Telecom application.
• Long term partnership with customers suppliers and our team.
• Worldwide offices and sales network.

What do we sell and the Planar Technology

• Magnetic passive component (transformers and inductors)
• Planar technology Vs Conventional one $\rightarrow$
• $\rightarrow$ Customization, 100's designs per year
• $\rightarrow$ Large R&D team
• Long design-in and implementation cycle $\rightarrow$
• Power range from 0.5W-100KW

Our products (diversification)

Payton Planar Advantages

RINSPEED

• Full customization-long design cycle.
• We have patience, "long distance" runner.
• R&D to keep leading the market, $\rightarrow$ innovation and close cooperation with the customers R&D.
• Reduced Size and Weight (smaller $\rightarrow$ package).
• Higher efficiency.
• Easy to use-thermal management.

Market Trends

• Miniaturization
• Increased frequency/power density $\bullet$
• Green Energy/electrification/efficiency
• Customization and fast reaction

Markets & Applications

• Highly diversified
• We follow the requests (not the market) and design for it
• Examples are: $\rightarrow$
• Portable equipment
• Avionics
• Automotive
• Power electronics systems
• Space
• Welding
• Consumer goods
  • Telecom equipment

We do not focus on the market but on the projects

Automotive market

OEM / Tier 1 / Tier 2 EV/HEV demand is driven by the regulation Wide spectrum of applications Long design-in cycle DC-DC converters and Chargers. $\rightarrow$ Increased demand for high $\rightarrow$ power/compact size/weight

Growth Engines

• Demand for compact solution $\rightarrow$
• Supporting technology (semiconductors)
• Green →
• Diversification (currently 3 biggest $\rightarrow$ customers are from 3 different sectors)

Potential Risks

• Automotive business- no guarantees. $\rightarrow$
• Regulation changes. $\rightarrow$
• Duties. $\rightarrow$
• Increased competition. $\rightarrow$

4 Years sales (in US\$ thousands)

* 2018 sales are a result of HY2018 X 2 calculation. Not to be considered as an estimation and/or forcast.

USD/NIS/£ Influence $\rightarrow$

• The Group is exposed to currencies fluctuations, especially of the US\$ in relation to the NIS and the Pound $(E)$ . Most of the Group's salaries and other operating costs are in local currencies. Revaluation of the local currencies drives to an increase/decrease in labor costs and other operating costs, thus, affects the operating results of the Company.
• Backlog $\rightarrow$
• Only firm orders are shown in the 'Order Backlog' (No forecasts of any kind)
• Dividends $\rightarrow$
• Decided every year by the BOD based on the Business status/needs.
• Distributed \$3M/Yr in PPM in last 3 years (\$2M/yr in PI)
• For the Automotive market, need very strong cash position.
• Payton is constantly looking for business opportunities to expand its core business with synergetic product lines.

Info@paytongroup.com

www.paytongroup.com

R The best way to predict the future is TO INVENT IT "

Alan Kay