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Scodix Ltd. — Investor Presentation 2021
May 3, 2021
7037_rns_2021-05-03_a05c72c0-69d2-4f54-b6a9-5847742b4b05.pdf
Investor Presentation
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Investor presentation IPO April 2021

Disclaimer
This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Scodix Ltd. (the "Company") and should not be regarded as a recommendation or an opinion.
The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its business. This presentation was made for the convenient and succinct display of information and does not replace the need to review the Company's reports including the prospectus drafts and final prospectus to be published by the Company, after receiving all regulatory permits for such publication. Since the presentation was prepared prior to the publication of the final prospectus, there may be substantial changes in the information included herein.
This Presentation includes statements, data, forecasts, estimates, assessments, expectations, goals and other information, intent or belief pertaining to future events and/or matters, that are "forward-looking statements", as defined in the Securities Law 5728-1968, whose materialization is uncertain and is beyond the Company's control, and which in its nature involve risks and uncertainties. Such forward looking statement may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation. Unless required by law, the Company may decline updating or revising any of the forward-looking statements, whether as a result of new information, future events or otherwise. Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent third-party sources the accuracy of such information and the assumptions on which such information is based have not been independently verified. The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.
Presenters

Eli Grinberg CEO and Co-founder

Amit Shvartz GM Scodix Israel and COO

The Scodix Digital Enhancement
Accurate, patented Inkjet process to add variable and personalized special effects to:
- Packages
- Greeting cards, albums, business cards, brochures, books, invitation, calendars, and more


The Scodix vision coming to life on the new Xiaomi worldwide introduction
On December 28, 2020 , Xiaomi presented its latest smart phone, where the special edition is with SCODIX CRYSTAL™ DIGITAL ENHANCMENT
In honor of the company's founder, Lei Jun, the Special Edition includes the Lei Jun signature and a special aesthetic effect on the back cover. Under customary glass, ribbed materials across the back of the smartphone shimmer in different colors depending on how the light hits the glass. Xiaomi has simulated the dazzling effect on the smartphone packaging using Scodix Crystal.
The Xiaomi MI 11 is the first Snapdragon 888 Powered smartphone in the world and, as a flagship product for the company, packs a top-tier display, premium speakers, great cameras, and more.

5
The time is now
6

Scodix
- Disruptive mature technology
- New products to address the packaging market
- 360 systems worldwide
- WW infrastructure
- Consumable business model
- Experienced management team

Targeting massive opportunity in the packaging market

Founded 2007, Sales from 2011

\$190M sales


83 Employees

41 patents, 10 patent families

Over 360 installation worldwide

Strong growing recurring revenue

Blue ocean, \$10B TAM

Green, Disruptive technology

The digital revolution in print


Management team

Eli Grinberg CEO and Co founder


Amit Shvartz GM Scodix Israel and COO

Guy Alon VP R&D
Dov Ofer Chairman

Nigel Tracy VP BD & Marketing

Jason Rollo President North America

Leading Investors:


Shahar Seidon CFO
Ziki Kuly VP APJ & Product Marketing


Selected brands using Scodix


Consumer Goods
| AMERICAN |
|---|
| EXPRESS |
Consumer Electronics
Over 360 systems worldwide
Go to Market:
Direct in North America and major territories in Europe
Chain of distribution partners WW

WW infrastructure of sales, customer support and polymer sales
Scodix presses product offering
| Commercial | E-Commerce | Packaging | |
|---|---|---|---|
| Scodix Ultra 1000 | |||
| Scodix Ultra 2000 | |||
| Scodix Ultra 3000 | |||
| Scodix Ultra 4000 | |||
| Scodix Ultra 5000 | |||
| Scodix Ultra 6000 | |||





The Scodix Ultra advantage:
- Fully digital no tooling, close to zero setup, minimal waste with easy operation
- Automatic optical registration per sheet
- Variable and personalized printing support
- Variable Sheet size: up to 1060 X 760 mm, 1.5 m sheet pile height
- Substrate Range:
- Wide range of paperboards 135 800 gsm
- Wide range of plastic substrate and metalized boards
- Works on offset, digital print, WB coating and a wide range of laminations
- Speed 1250 sheets per hour

Strong recurring revenue model: Polymers + Service

- Strong recurring revenue even during Covid-19
- All polymers are developed by the Scodix team of chemistry experts
- Manufactured in the Scodix Polymer Plant

Scodix technology
Unique inkjet, polymer and process technology, getting the worlds best:
- Fine details
- Variable enhancement
- Substrates
- Print Processes
- IP – 41 patents from 10 patent families
Disruptive Eureka technology, to digitally print foil effect through Inkjet and process technology
Strong multi discipline skill set
- Chemistry
- Software
- Mechanics
- Electronics & Data path
- Ink jet process
14

Target markets

Packaging Market Size:\$960B 2.8% Annual Growth \$28B in 2024 digital printing
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Scodix TAM: \$5B

E-Commerce print Market Size:\$24B 5.1% Annual Growth \$15B in 2024 digital printing
Scodix TAM: \$3B

Commercial Market Size:\$270B Stable \$40B in 2024 digital printing
Scodix TAM: \$2B
The Future of Global Packaging to 2024, Smithers Pira, December 2019
Association for Print Technologies - PRIMIR Research Unit, 2018. Outlook for the Global Web-to-Print Market
The packaging market

Traditional industry on the move to digital

Annual industry growth of 2.8% through 2024

Digital print growing to 19.5% in 2024

50% of jobs are less than 6000 sheets
The Future of Global Packaging to 2024, Smithers Pira, December 2019
16

NOW IS THE RIGHT TIME TO ENTER THE MARKET


Scodix in packaging Mass production to mass customization and personalization


Scodix unique value proposition for packaging :
- Time to market hours instead of weeks
- Immediate sampling and testing of design options
- Saves cost on short and medium runs
- Unlimited variations
- Personalization

E-Commerce print
E-Commerce in print includes: Greeting cards, photo albums, business cards, wedding invitation, save the date cards, and more
Scodix unique e-commerce value proposition:

Personalization

Time to market – immediate production

Automated workflow

\$ 138M Sales
"Scodix allows us to add the luxurious embellishments needed to make our customers feel that they're producing something special. This level of enhancement is not something we were able to offer before with our online service. Personalization is an increasingly popular trend and one we know our customers love"
\$ 1980M Sales
"Partnering with Scodix is a natural way for us to offer cutting edge digital embellishments technology to our customers. We were thrilled to launch customizable foil as part of our Holiday card offering"


Over 50M Scodix Cards in 2020 Holiday Seasons
Commercial
Scodix unique commercial value proposition:

Add value to print products

Allow the commercial printer to charge more

Short run digital solution
19

Implemented on variety of products

Mega trends driving Scodix success



Production Efficiency E-Commerce Sustainability

Production efficiency The Scodix manufacturing advantage
Scodix Process

Analog Process

Scodix offering concept Scodix Ultra platform replaces five analog systems





| Silk Screen | Glitter | Foil / Embossed | Cast&Cure | Braille | |
|---|---|---|---|---|---|
| ASP (K\$) | 200-300 | 100-300 | 300-1,300 | 500-1,000 | 50-150 |
| Required Space (Sqm) | 80-200 | 20-40 | 100-120 | 20-40 | 5-10 |
| Dedicated Operators | 1-2 | 1 | 1 | 1 | 1 |





E-Commerce
Trends:
- 27.6% growth from 2019 to 2020
- 21.8% of all retail sales will be e-commerce by 2024
Demands:
- Fast Turnaround
- Shorter supply cycles
- Shorter run length
- Flexibility
- Massive effect on packaging

Sustainability
Current Analogue manufacturing Scodix

Discharge of chemicals, molds, plates, pallets and other wastes

Very long print runs that creates waste throughout all the supply chain

Long setup times that requires larger head count

High energy consumption with large footprint systems


No one-time disposables such as plates, molds or screens

Print exactly what you need approach and architecture

No VOC or other polluting gasses

Compact and power efficient systems

Easy to operate, setup and maintain

24
Scodix Ultra 6000 – Unique Value Proposition

Scodix financials

Revenue

29% Gross Margin


14% Gross Margin


2020


27
Not extracted from financial statements
The Scodix opportunity
Targeting the packaging industry

Mature technology, Over 360 customers WW

The packaging market – Blue ocean for digital solutions

Growing recurring revenue model \$7M in 2020

\$10B TAM

Experienced management team, backed by leading investors
