Tadiran Group Ltd.

Investor Presentation • Mar 18, 2024

Company Presentation, March 2024

Tadiran Group

This presentation was prepared by Tadiran Group Ltd. (Previously: Tadiran Holdings Ltd.) (hereinafter: "the Company" and / or the "Group" and / or "Tadiran") as a general presentation about the Company and is not intended to replace the need to review the Company's full reports to the Securities Authority and the Stock Exchange. Value in Tel Aviv Ltd. including, inter alia, the Company's periodic reports including the Company's annual report for 2023 for FY 2023 and immediate reports (hereinafter: "Company Reports") prior to making a decision regarding investment in the Company's securities.

The information contained in the presentation does not constitute advice, recommendation, opinion regarding investment, does not constitute an offer to invest and / or purchase securities of the Company (and in particular does not constitute an "offer to the public" or "sale to the public" of any kind) and does not replace independent examination and personal advice according to the unique needs of each investor. Such an offer shall be made only in accordance with the provisions of the law, after obtaining the necessary permits from the Securities Authority and the stock exchange. This presentation includes a summary of the issues described in the context in which they are discussed and not the full information available to the Company in relation to these issues and does not include the full results and financial information of the Company and the notes to them, and / or the Company's business plans and / or the Company'srisk factors.

The presentation includes data on international markets, including growth volumes, penetration rates, and sales, statistics, etc. It should be emphasized that this data is based on public data and the Company's assessments and does not constitute any facts and / or representations. This presentation may include forwardlooking information as defined in the Securities Law, 1968 (hereinafter: "forward-looking information"), including forecasts, subjective assessments by the Company's management as of the date of publication of the presentation, which although the Company believes are reasonable, Which are inherently uncertain, estimates and information regarding future events. The forward-looking information is solely aimed at the date to which it relates and is uncertain, unpredictable, affected by factors beyond the control of the Company, each of which, or a combination thereof and the realization of which risk factors characterize the Company's activities, may materially impair results. The activities of the Company and cause the actual results to be materially different from the forward-looking information.

Except as an undertaking to disclose information as required by the securities laws applicable to the Company, the Company does not undertake to update or change any information contained in this presentation in order to reflect events and / or circumstances that will apply after the date of its preparation. It is clarified that the Company's plans and strategy included in this presentation are correct as of the date of their publication and may and will change in accordance with the decisions of the Company's Board of Directors from time to time. The Company's assessments regarding the Company's objectives are based, inter alia, on the Company's assessments regarding trends in the Company's business in particular and trends in the market in which the Company operates in general, as well as the Company's management assessments regarding potential and market trends in Israel and international markets as of this report. These estimates may not materialize and/or materialize in a materially different manner from the company's estimates, among other things, as a result of factors external to the company and which are beyond the company's control, including, among other things, changes in the economic situation in the Israeli economy in general and in the market in which the company operates in particular, the development of new trends and/or Different from those that the company's management estimates as of this date, the non-realization of the potential for penetration into international markets in general, and in particular those detailed above, regulatory changes and the realization of which of the risk factors described in the company's reports, the continued potential effects of the Swords of Iron war, etc.

To the extent that there is a contradiction 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 will prevail.

Forward Looking Information

Tadiran Group enters this period of uncertainty with financial strength and flexibility, low leverage and efficient inventory management. In addition, the company's bonds (Series 3) were rated ilAA - (with a negative outlook) by Maalot Rating & Research, and Aa 3.il (with a negative outlook) by Midroog.

As of this date, the war has not had a material impact on the company's suppliers, the availability of finished products and raw materials, the company's supply chain, etc. The number of employees recruited and the number of absentees from work are also not material.

In the Consumer Products division, there was a slowdown and decline in the volume of demand and sales of air conditioners, which was mainly reflected in October. In November -December 2023, sales returned to the level typical for this time of year.

In the energy sector, in the photovoltaic energy sector in Israel, there is a noticeable decrease in the demand for solar systems. In the energy storage sector, the delivery date of some of the systems that were scheduled for delivery in 2023 has been postponed to the first half of 2024.

As of this date, the war has not had a material impact on the Group's financial position, its ability to meet its obligations, its liquidity and its sources of financing.

At this stage, there is significant uncertainty regarding the further development of the war, its scope, its duration and the extent of its effects. Accordingly, at this stage, the Company is also unable to estimate the full extent of the war's impact on the Company's operations, business and financial results. It is possible that the war will have effects on the scope of activity in the consumer products and solar sectors in Israel, at the same time, the company is unable to estimate the extent of the aforementioned impact by paying attention to the possible effects of additional macro factors in these industries. like to thank all the soldiers and security forces who are working to protect our home. May they return home safely. "Swords of Iron" War

Our hearts go out to the families who have lost their loved ones. The Tadiran family sends wishes for a speedy recovery to all the wounded and hopes for the return of the kidnapped men and women soon and in peace. We would

Implications for Tadiran Group

"Enabling a healthy and sustainable living environment through renewable energy, comfortable climate and clean air, alongside maintaining its position as a leading company in the field of home and commercial air conditioning in Israel."

The Future Is Here Company Vision

Comprehensive End-to-End Solutions

Electric Vehicle Charging – AC & DC Systems

Aluminum Profiles

Energy Solutions Tadiran Solar Energy storage systems, UPS, batteries, One-stop shop for solar energy Aluminum Extrusion plant

			Tadiran Group
Home and commercial air conditioning	Air treatment and enhancement technologies	White consumer goods	VP Solar	Tadiran Arava	Tadiran Aluminum	Tadiran Solar	Tadiran Energy Solutions
Development	AIROW 3	Import, marketing	One-stop shop in	Planning,	Extrusion plant	One-stop
capabilities. Independent Advanced production, service and logistics systems. Heat pumps – water heating solutions	Unique product based on Airow technology. Intellectual property, development capabilities and technology	and distribution of electrical appliances for home use.	Europe for solar energy systems and heat pumps	engineering and installation of cladding, curtain walls and BIPV (in the future)	and trade in aluminum profiles	shop for solar energy systems in Israel	systems, UPS, batteries, and vehicle charging management systems

and vehicle charging management systems

Group Structure

Tadiran Consumer Goods

Home and commercial air conditioning

Air treatment technologies

Solar energy systems

Heat Pumps

White consumer goods

EV charging

Factories in Israel including advanced laboratories and rigorous quality control.

Complex logistics system of import, production, storage and distribution. Efficient inventory process that allows for work in dynamic market conditions and a wide range of projects.

Local Israeli R&D department. Connection to startups and nurturing entrepreneurship

Leading in-house customer service department. Tadiran Xpert team to support every complex project

Management of a broad product portfolio of leading global brands in both air conditioning and new energy

Trade Service Innovation Supply Chain Manufacturing

Full End-to-End Value Chain

Leading, Recognized, and Preferred Brand

Company Overview

Due to the Swords of Iron War in October 2023, there was a slowdown and decrease in the volume of demand and sales. During November and December the volume of sales returned to the volume of sales typical of this time of year.

In the third quarter reports for 2023, the company estimated that the revenue of the consumer products sector in 2023 would be about NIS 900 million with an annual operating profit margin in the range of 6-7%.

Total revenues of the sector in 2023 were about NIS 887.3 million and the operating profit margin was about 7.2%, compared to total revenues of about NIS 1 billion in the corresponding period and an operating profit margin of 8.8%.

In addition, due to the continued improvement in transportation and purchasing costs in the second half of 2023, the operating profit margin in the second half of 2023 was about 10.2%, in line with the company's estimates of an operating profit margin of 10-13% in the second half of 2023, compared to an operating profit margin of 5.1% in the second half of 2022.

The company ended 2023 with a low inventory balance compared to the same period last year.

Consumer Goods Division

Operation Indicator Built-in monitoring circuit for low-power operation indication

PLUG & PLAY Easy to install in ducted air conditioning system

Zero Maintenance

No maintenance or additional financial costs

Operation Indicator Continues air purification even after the air conditioner is turned off

Global Patents: Automatic self-cleaning mechanism and Usage method

OZONE FREE Certified to meet the ozone requirements of UL 867 standard and approved by CARB

Research and Development of Exclusive Product Worldwide

Laboratory tests found that the TADIRAN AIROW 3 technology reduced up to 99.93% of known pathogens in the air, including the corona virus 2-, SARS-Cov- other viruses and bacteria, in a space of 1 m3, under the experimental conditions tested. TADIRAN AIROW 3 was proven to be effective in reducing the presence as a spray of the MS2 virus (a substitute that simulates the corona virus) and the bacterium Staphylococcus epidermidis in the air up to 99.93% within 60 minutes (in an experiment in a 16 cubic meter chamber). The device is not a medical device. Tadiran does not claim that TADIRAN AIROW 3 will guarantee that the users of the device will not be exposed to biological pathogens. Customers must continue to adhere to the guidelines of public health organizations and qualified medical officials regarding measures to prevent infection.

Air Treatment Technology - Tadiran Airow

2022 2023

*Following the Swords of Iron War, the aforementioned clients (some of whose sites are located in the Gaza Envelope) requested to postpone the delivery date of some of the systems to 2024 (from those originally scheduled for 2023) and to early 2025 (from those originally scheduled for 2024).

1000.4 887.3 Tadiran Solar – In 2023, the Israeli solar market was affected by the existing load on the electricity grid, an increase in inventory levels, and a decrease in panel prices. In addition, there was a further decrease in revenue, including operating profit and margin, in the fourth quarter, also as a result of the Swords of Iron War.

Total revenue for the sector in 2023 was approximately NIS 1.1 billion, with an operating profit margin of 8.8%. This compares to total revenue of approximately NIS 1.3 billion in the corresponding period, with an operating profit margin of 9.8%. The decrease in revenue is due to a decrease in the solar sector, which was offset by an increase in the energy storage sector.

VP Solar – There was a decrease in revenue (without a significant erosion of the operating profit margin) due to changes in electricity prices, a decrease in panel prices, high interest rates, and regulatory changes in the residential sector.

Tadiran Energy Solutions – There was a significant increase in revenue due to the recognition of revenue in 2023 from energy storage projects (\$83 million)* and an increase in demand for uninterruptible power supply systems (UPS) as a result of the Swords of Iron war.

Renewable Energy Division

Energy storage systems

End -to

EV charging

Addressing the high penetration rate of electric vehicles in Israel (18% market share) Smart AC and DC charging stations managed by an app for remote control Service and warranty by Tadiran

June 2023

A contract was signed with an electric bus operator for the supply and installation of modular fast charging stations (DC) for NIS 10 million

April 2023

The National Infrastructure Committee approved a plan to electrify the entire bus terminal and parking system in Israel at a cost of approximately NIS 1 billion. This will enable the electrification of more than 300 bus terminals and parking lots in an expedited licensing process.

Long Term Contract with an Electric Bus Operator

The aforementioned information in relation to the positive possible effects of the Ministry of Transportation's plan to electrify the entire system of bus terminals and parking lots in Israel, is forward-looking information as defined in the Securities Law, 5578-1968 and is based on the information available to the company and the company's estimates as of this date, which are based on its experience and familiarity with this field in Israel. The company has no ability to estimate when the consequences of the aforementioned changes will be reflected and how they will be reflected in the company's results. The information and estimates As stated, they may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are not under its control, including, among others, the development of the Swords of Iron War, the manner in which the proceedings will proceed regulatory by the various factors, changes in the macro environment in Israel and in the world and macroeconomic factors as well as as a result of the realization of which of the risk factors listed in section 38 of the annual report for 2023.

Renewable Energy | Tadiran Energy Solutions

Solar systems – End to end solutions

World -Leading Products With Professional Support from Experts Throughout the Entire Process And Construction Manufactured in Israel to Suit Each Project

Aluminum profile manufacturing

• Innovative technological solutions for a wide range of sectors
• Israeli local production
• Production capacity of 800 tons per month
• Aluminum profiles for the industrial sector
• Aluminum anodizing plant located in Karmiel
• Constructions for Tadiran solar systems
• Fully automated factory with no human touch
• Green factory
• Utilization of natural gas

Renewable Energy | Tadiran Aluminum

Building façade cladding (Tadiran Arava)

Following Tadiran 's expansion in the market of solar solutions for buildings, Tadiran intends to enter the field of BIPV (in the future )

At the beginning of August, Tadiran completed the purchase of 70% of the shares of Tadiran Arava Ltd. The aforementioned purchase is in line with the growth engines underlying the company's strategic plan, including, among other things, the creation of partnerships in areas complementary and/or tangential to the company's operations.

Arava operates in the field of planning and installation of aluminum cladding, curtain walls, etc. Arava intends to start operating in the field of BIPV cladding (building -integrated solar panels, installed as external cladding on the walls of buildings and enabling, through the use of the facades of the building, the increase of the area used for solar energy generation).

In Tadiran's estimation, the acquisition of control of Arava will provide Tadiran, in parallel with its existing activity, an infrastructure for developing activity in the entire value chain in the BIPV cladding market, starting with the production of the aluminum profiles used to install the BIPV, through the marketing of the panels integrated into the structure themselves and their installation through Arava.

The BIPV activity is an activity at the beginning of its development in Israel and in the world.

a

The aforementioned information in relation to the company's evaluations in relation to the company's entry through Arava into the field of BIPV and its benefits, in relation to the actual execution of building cladding projects using BIPV and/or other cladding materials through Arava, are forward -looking information as defined in the Securities Law, 5778 - 1968 and is based on the information in the company's possession and on the company's estimates as of this date, which are based on the company's existing activities and capabilities as well as its experience and familiarity with the energy sector in Israel. The aforementioned information and estimates may not materialize and/or materialize in materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among others, due to factors that are not known to the company as of this date and are beyond its control including, among others, the effects of the "Iron Swords" war, the manner and timing of the advancement of the regulatory procedures by the various parties in Israel, changes in the macro environment in Israel and in the world that may affect, among The rest, on the volume of demand in the energy sector including, the manner of development of the BIPV field in Israel in general and in Arava in particular and including, among other things, the volume of demand in this field, the efficiency of BIPV, regulatory provisions that may develop in the future as well as as a result of the realization of which of the risk factors detailed in section 38 of Part A to the annual report for 2023.

Solar Panels

Authorized distributor of Qcells, Jinko and more - Global panel manufacturers

Energy conversion

Inverters, optimizers. The company is a distributor of SolarEdge, Huawei inverters and more

Storage systems

Authorized distributor of BYD, LG and more

EV charging

Distribution of products for charging vehicles - Mennekes, Wallbox and more

Heat Pumps

Distribution of heat pumps from leading manufacturers - Daikin, LG and more

Mounting and construction

Import and distribution of ready-made construction systems

Professionality

High-quality professionals with a high level of service awareness

Customer Relation and network

long-standing customer relationships with many segments based on the company's reputation

Advanced technology supplier

Inverters, panels and storage systems from the world's leading manufacturers

Solar Systems in Europe: End-to-End Solutions

Significant assets in activity areas

International renewable energy activity – VP Solar

*SolarPower Europe: An organization that brings together about 300 corporations in the solar energy sector in Europe and has set itself the goal of promoting the use of solar energy. The organization promotes policies that support the solar market in Europe, through research, publications and support for the industry.

REPowerEU Plan: The European Union has allocated €113 billion to the construction of renewable energy power plants, including solar power plants. As part of this plan, the Italian government intends to invest approximately €90 million in Enel's company to build a panel manufacturing plant.

According to a report by SolarPower Europe: As of the end of 2023, the amount of solar electricity in Italy stood at 29.5 GW. According to the forecast, in the next 3 years, this amount is expected to double, so that the amount of solar electricity in Italy will reach 56.7 GW (an addition of 27.2 GW).

In June 2023, the Italian government updated its target for renewable energy generation by 2030 to 65% (up from 55%)

The years 2021 and 2022 were characterized by high demand for solar systems, particularly in 2022, when electricity prices in Europe peaked, largely due to the impact of the energy crisis and the Russia-Ukraine war.

In 2023, there were changes in the macro environment of the solar market in Europe, including falling electricity prices, an increase in the inventory of solar panels and a decrease in their prices, a change in the incentive system for the household sector (Italy), and rising interest rates. These factors cumulatively led to a decrease in demand for solar systems and a decrease in VP Solar's revenues

2021-2023 Summary

Trends in the European and Italian Solar Market

The company's estimates regarding the expected positive effects of the measures taken by the Italian government as detailed above, on the scope of the growth of the solar market and storage systems in Italy and on the activity of VP SOLAR and in particular in relation to the positive effects on the industrial-commercial (I&C) market are forward-looking information as defined in the Securities Law, "H-1968 based on the information in the company's possession and on the company's assessments as of this date which are based on its experience and familiarity with this field in Italy and based on forecasts and assessments of various parties in Italy. The company has no ability to estimate when the consequences of the said changes will be manifested and how and whether they will be manifested in the results The company. The aforementioned information and estimates may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are not under its control, including the manner of promoting and implementing the regulatory procedures on by the Italian government, changes in the macro environment in Italy and Europe (such as interest rates and inflation), a further decrease in electricity prices, substantial changes in the incentive system to be introduced by the Italian government, changes in the scope of solar system inventory, a continued decrease in panel prices, as well as the realization of which of the risk factors detailed in section 38 of the annual report for 2023.

The Solar Market in Europe and Italy (1/2)

Renewable Energy

Parco Agrosolare: A €2.35 billion incentive program that offers grants of up to 80% of the installation cost of solar systems on the roofs of agricultural and agro-industrial buildings.

Energy Communities: A €5.7 billion incentive program for the establishment of "energy communities." Applications for grants can be submitted starting in April 2024.

Agri-PV: A €1.7 billion incentive program that offers 40% of the installation cost of solar systems on active agricultural land, as well as grants to ensure economic viability of approximately 1 GW (of which 300 MW are reserved for small installations of up to 1 MWh for farmers and agricultural associations).

Incentives for Reducing Electricity Consumption in Businesses: A tax benefit program for businesses that reduce their energy consumption, including, among other things, the installation of solar systems with panels with an efficiency of at least 21% that were manufactured in Europe.

The Solar Market in Europe and Italy (2/2)

The Italian Government Approves 4 Incentives for the Commercial and Industrial (I&C) Market for the Coming Years

In light of the above, and considering the impact of macroeconomic factors, the company estimates that there will be a gradual increase in the demand for solar systems in Italy starting in 2024 (with an emphasis on the commercial and industrial market), which will also be reflected in VP SOLAR's financial results.

The company's estimates regarding the expected positive effects of the measures taken by the Italian government as detailed above, on the scope of the growth of the solar market and storage systems in Italy and on the activity of VP SOLAR and in particular in relation to the positive effects on the industrial-commercial (I&C) market are forward-looking information as defined in the Securities Law, "H-1968 based on the information in the company's possession and on the company's assessments as of this date which are based on its experience and familiarity with this field in Italy and based on forecasts and assessments of various parties in Italy. The company has no ability to estimate when the consequences of the said changes will be manifested and how and whether they will be manifested in the results The company. The aforementioned information and estimates may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are not under its control, including the manner of promoting and implementing the regulatory procedures on by the Italian government, changes in the macro environment in Italy and Europe (such as interest rates and inflation), a further decrease in electricity prices, substantial changes in the incentive system to be introduced by the Italian government, changes in the scope of solar system inventory, a continued decrease in panel prices, as well as the realization of which of the risk factors detailed in section 38 of the annual report for 2023.

Exemption from Submitting Form 4	Green Track	Renewable Energy to the Existing Electricity Grid
Exemption from submitting a building permit (Form 4) for connecting a solar system to an existing building with an existing electrical connection.	Expansion of the "Green Track" pilot for connecting solar and storage systems up to 15 kW (instead of 10 kW).	Adding 2.3 GW from renewable energy sources to the existing electricity grid, with about 50% of them for low-voltage installations.
Rates Settings	One Dunam in a Farm	"Urban Premium"
Rates for energy storage systems (low voltage) were set for the first time, and tariffs for solar systems (low voltage) were improved.	Construction of ground-mounted solar systems in moshavim in Section A up to 1 dunam in size, under the existing tariff regulation for low	Addition of 6 agorot per kWh to the existing tariff for solar systems in 70 urban localities for 15 years.

voltage installations.

Promoting Regulation to Meet Israel's National Goals

30% Electricity Generation from Renewable Energy Sources by 2030

The aforementioned information in relation to their entry into force, the date of entry into force and possible effects of the decisions of the Electricity Authority detailed above and/or the regulatory procedures detailed above including, among others, the company's assessments that the above decisions may contribute to the growth of the solar market and storage systems and therefore constitute an opportunity for the company increase its activity in these areas, as well as the assessment that the regulation may ease the load on the electricity network, and/or in relation to the effect of the decisions of the Israeli government and/or the decisions of the Electricity Authority detailed above on the development of the renewable energy sector in Israel, including on the company's business, is forward-looking information as defined In the Securities Law, 1968-5778 based on the information in the company's possession and the company's estimates as of this date, which are based on its experience and familiarity with this field in Israel. The company has no ability to estimate when the consequences of the aforementioned changes will be reflected and how they will be reflected in the company's results. The information and estimates As stated, they may not materialize and/or materialize in a materially different manner, and there is no certainty as to the realization of the company's estimates as detailed above, among other things, due to factors that are not known to the company as of this date and are beyond its control, including, among others, the effects of the "Iron Swords" war, the manner The promotion of the regulatory procedures by the various parties and their actual effect on the energy market in Israel and society in particular, changes in the macro environment in Israel and the world which may affect, among other things, the extent of demand for solar systems and/or storage facilities and macroeconomic factors as well as as a result of the realization of which of the risk factors detailed in the section 38 of the annual report for 2023.

Q4 & FY2023 Financial Results

Tadiran Group	Q4	Q4	Change	F Y	F Y	Change
)NIS millions( in	2023	2022	%	2023	2022	%
Revenues	460 2	492 7	6 6% -	954 1 5 ,	2 281 6 ,	3% 14 -
profit Gross	70 8	76 3	2% 7 -	327 5	415 4	2% 21 -
Gross margin	4% 15	5% 15		8% 16	2% 18
profit Operating	24 6	29 2	8% 15 -	157 1	214 4	7% 26 -
Operating margin	3% 5	9% 5		0% 8	4% 9
EBITDA	39 1	40 4	4% 3 -	162 3	257 4	9% 36 -
EBITDA margin	5% 8	2% 8		3% 8	3% 11
profit Net	3 5	30 2 -	5% 82	96 2	87 2	3% 10
profit margin Net	2% 1	6 1% -		9% 4	3 8%

FY	Change
2022	%
2,281.6	-14.3%
415.4 18.2%	-21.2%
214.4 9.4%	-26.7%
257.4 11.3%	-36.9%
87.2 3.8%	10.3%

Including a projected dividend distribution of NIS 22.7 million in April 2024, as approved by the company's board of directors near the publication date of the 2023 financial statements, based on the results of the second half of 2023

Since 2016, approximately NIS 383 million in dividends have been distributed

Dividend Distribution (NIS in millions)

Full realization of high-cost inventory in the HVAC and solar sectors in Israel, resulting in improved purchasing and transportation costs

The energy efficiency business "ESCO-Tech" was sold for a total consideration of NIS 67.5 million

An aluminum profile extrusion plant was established, and a building envelope and curtain wall company was acquired.

The company was approved as the exclusive distributor in Israel for battery manufacturer GOTION, and approximately \$83 million of energy storage systems were delivered for the first time.

Cash flow from operating activities of approximately NIS 109 million

The option period with the partner in VP SOLAR was extended, and the CEO's term of office was extended to 2027 (instead of 2024).

Additional Updates from 2023 activities

'2026 Strategic Framework' Summary

The information regarding the goals and the business strategy of the group as described above and its estimates regarding the dates in which it will realize the aforementioned goals as well as the manner in which the goals will be realized, including, among other things, the company's assessments regarding the growth potential inherent in the company's various fields of activity, including in the field of renewable energy (including the sale of energy storage systems ) and in the TADIRAN AIROW technology and the company's assessments in connection with the growth potential in the field of heat pumps in Europe and in general, the marketing of technology-integrated air conditioners as mentioned in global targets and the expected volume of sales, as well as the company's assessment in relation to the scope of the operating profit and the rate of operating profitability as stated above, is forward-looking information as defined in the based Securities Law, Among other things, the group's goals as of this date, its assessments of the trends in the group's business in particular and the trends in the markets in which the group operates in general, as well as the group management's assessments regarding the potential and trends in the field of maintaining clean air, including the company's assessments in connection with the marketing and sale of the TADIRAN AIROW technology in global destinations, and in the field of energy Exchanged in Israel and international markets as of the date of this report. These estimates may not materialize and/or materialize in a materially different way from the group's estimates, among other things, as a result of factors external to the company and which are beyond the company's control, including, among other things, the development and effects of the "Swords of Iron" war, changes in the economic situation in Israel in general and in the market in which the company operates In particular, trends in relation to the demand in Israel and in the world for the company's products in the field of renewable energy as well as for air conditioners in general, and for air conditioners that include TADIRAN AIROW technology in particular and the potential sales scope of such sales, noting, among other things, that this is a new technology and that there may be substitute products in the future, the development of new trends and/ or different from those that the group's management estimates as of the date of this report, the non-realization of the potential for penetration into international markets in general, and in particular those detailed above, regulatory changes and the realization of which of the risk factors described in section 38 of the annual report for 2023.

2022 Revenue: 2022 Revenue:

NIS 1.3 billion NIS 1.0 billion

NIS 2.7 billion

2026 4.5 Billion NIS

Tadiran 2026

2023 Revenue:

NIS 0.9 billion

2023 Revenue: NIS 1.1 billion

Expanding the HVAC and heat pump business in Europe through collaborations with local distributors, including through acquisitions and M&A.

Expanding VP Solar's activities into the HVAC sector.

Leveraging the company's capabilities and anticipated regulatory developments in the solar market in Europe, Italy, and Israel, including in the energy storage sector.

2026 Revenue: 2026 revenue: NIS 1.8 billion

Guidelines for Business Growth

New Energy	Consumer Goods

• Preserving market leadership in the residential segment. • Continuing to expand operations and achieve growth in the commercial segment.
• Focusing on introducing new products with added value to the market.
• Expansion of activities into Europe through joint ventures and/or M&A activity
• Leveraging the green building standard in Israel.
• Capitalizing on the excess demand for heat pumps in the European market.
• Manufacturing heat pumps at the Afula plant no need for significant investments.
• Collaborating with European distribution companies and/or utilizing VP Solar's platform
• 2023 First commercial year.
• Go To Market currently focused on B2B distributors in several markets.

Solar	• Growth in the Italian market and organic development in other European markets. • Significant regulatory developments in Israel. • Expanding nationwide coverage by opening an additional branch in the north of the country.	Air conditioning
Energy Solutions (Storage and UPS)	• The company has business contracts worth up to \$215 million (and delivered approx. \$83 million in 2023) • Developing the storage sector in Israel and among this, advances in supporting regulations. • Expanding activities to include marketing of UPS systems and other electrical systems.	Heat Pumps
EV charging	• Capitalizing on the growth of the electric vehicle market. • Focusing on marketing charging stations for all types of electric vehicles.
Aluminum	• The activity includes manufacturing and trading of profiles for the local market. • Future expansion of operations to international markets is possible.	Airow – air treatment
Tadiran Arava	• Providing building envelope solutions, curtain walls, and future penetration into the BIPV (Building Integrated Photovoltaics) sector.