Top Gum Industries Ltd. — Investor Presentation 2021

Jul 14, 2021

Disclaimer

The information included under this presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer to purchase securities and/or an invitation to make offers for their purchase or solicitation of any of the above regarding any securities of Top Gum Industries td. (the "Company") and should not be regarded as a recommendation or an opinion. Any such offer or sale will be made on the basis of a prospectus published by the Company after receiving a permit from the Securities Authority and approval from the Tel Aviv Stock Exchange (hereinafter, respectively: "Securities Authority" and "the Stock Exchange"). This presentation does not purport to encompass or contain any information that may be relevant for the purpose of making any decision regarding investment in the Company's securities and in general. This presentation does not replace independent data collection and analysis, it should be borne in mind that past data does not necessarily indicate future performance. The presentation includes data and statistics and other publications published by third parties, the content of which has not been independently verified by the company. The presentation was made, for a convenient and concise presentation, and it does not exhaust the full data about the company and its activities and does not replace the need to perform a full due diligence. The information contained in this presentation is incomplete and all that is stated in it is subject to a full due diligence and is not a substitute for reviewing reports published by the company to the public and especially in the draft prospectus or final company prospectus, supplementary prospectus and shelf prospectus. The information under this Presentation is not a substitute for Public Information and in the event of any conflict between the content of this Presentation and the content of any Public Information, the content of the Public Information shall prevail. The information in this Presentation should not be relied upon as any representation or warranty, express or implied, of the Company. No reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this Presentation. No legally binding obligations will be created, implied, or inferred from this Presentation. Various statements in this Presentation include information which derives from forecasts, estimates, assessments, and other information pertaining to future events and/or matters, whose materialization are uncertain and beyond the Company's control, and which constitute "Forwardlooking information", as defined in the Israeli Securities Law, 1968. Forward-looking information includes descriptions regarding the intent, belief or current expectations of the Company and are not guaranteeing future results, performance or achievements and are based on current expectations, estimations, and assumptions, involve certain risks and uncertainties which are difficult to predict and are not guarantees of future performance. 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 due to a variety of factors, many of which are beyond the Company's control, including, without limitation, certain risk factors. The Company does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. Certain information and factual statements (including in regards to markets or trends) contained herein are based on or derived from publicly available documents or independent third-party sources, and therefore the accuracy of such information and the assumptions on which such information is based have not been independently verified. Nothing in this presentation constitutes tax or business advice and does not constitute a substitute for consulting appropriate advisors in these aspects. Every potential investor should seek advice and guidance in connection with potential investments, including tax advice given his data and tax status.

מטרת מצגת זו להציג את פעילות טופ גאם תעשיות בע"מ )להלן: "החברה"( ולספק אינפורמציה כללית בנוגע לפעילותה. מצגת זאת נועדה אך ורק לשם המחשת מידע הכלול בטיוטות תשקיף שפורסמו לציבור ואינה מחליפה את הצורך לבצע בדיקת נאותות מלאה. המצגת אינה מהווה הצעה להשקעה או לרכישה של ניירות ערך של החברה ו/או הזמנה להציע הצעות לרכישתם ובפרט אינה מהווה "הצעה לציבור" או "מכירה לציבור" מכל סוג שהוא. הצעה או מכירה כאמור ככל שתעשה תעשה על בסיס תשקיף שתפרסם החברה לאחר קבלת היתר מרשות ניירות ערך ואישור מהבורסה לניירות ערך בתל אביב )להלן, בהתאמה: "רשות ניירות ערך" ו- "הבורסה"( ככל שיינתן. מצגת זו אינה מתיימרת להקיף או להכיל את כל המידע העשוי להיות רלבנטי לצורך קבלת החלטה כלשהי בנוגע להשקעה בניירות הערך של החברה ובכלל. ככל שקיימת סתירה בין האמור במצגת זו לבין טיוטות התשקיף יגבר האמור בטיוטות התשקיף. יש לקחת בחשבון כי נתוני עבר אינם מצביעים בהכרח על ביצועים בעתיד. המצגת עשויה לכלול נתונים שהחברה אספה מצדדים שלישיים, אשר החברה אינה יכולה לערוב לנכונותם היות ולא בדקה את הנתונים בעצמה. המידע הכלול במצגת זו אינו שלם וכל האמור בה כפוף לביצוע בדיקת נאותות מלאה והיא אינה מהווה תחליף לעיון בדיווחים שתפרסם החברה לציבור ובייחוד בטיוטות התשקיף או בתשקיף החברה הסופי, תשקיף להשלמה ותשקיף מדף שיפורסמו על ידי החברה לאחר קבלת ההיתר מרשות ניירות ערך ואישור הבורסה. מצגת זו כוללת נתונים ומידע המבוססים בחלקם על הערכות סובייקטיביות, אומדנים וציפיות של החברה ולפיכך, יש להתייחס למידע המפורט בה בהתאם. במצגת זו כללה החברה, בין היתר, מידע הצופה פני עתיד, כהגדרתו בחוק ניירות ערך, תשכ"ח- .1968 מידע כאמור כולל, בין היתר, תחזיות, מטרות, הערכות ואומדנים, יעדים, אסטרטגיה עיסקית, הן לגבי פעילות החברה והן לגבי השווקים בהם פועלת החברה, לרבות מידע המובא בדרך של איורים ו/או גרפים ו/או טבלאות, המתייחסים לאירועים ו/או עניינים עתידיים אשר התממשותם אינה וודאית ויכול שיושפעו מגורמים אשר לא ניתן להעריכם מראש ושאינם בשליטת החברה. מידע צופה פני עתיד אינו מהווה עובדה מוכחת והוא מבוסס רק על נקודת ראותה והערכתה הסובייקטיבית של הנהלת החברה נכון למועד המצגת, המתבססת בין השאר, על ניתוח מידע כללי, הידוע להנהלת הידוע במועד עריכת מצגת זו, ובכלל זה נתונים סטטיסטיים שפרסמו גופים ורשויות שונות, פרסומים מקצועיים, פרסומים ציבוריים, מחקרים וסקרים אשר לא ניתנה בהם התחייבות לנכונותו או לשלמותו של המידע הכלול בהם ונכונותו לא נבחנה על ידי החברה באופן עצמאי. התממשותו או אי התממשותו של מידע צופה פני עתיד תושפע, בין היתר, מגורמי הסיכון המאפיינים את פעילות החברה והשוק בו היא פועלת, וכן מההתפתחויות בסביבה הכללית ובגורמים החיצוניים המשפיעים על פעילות החברה והשוק בו היא פועלת, אשר אינם ניתנים להערכה או ניתנים להערכה באופן חלקי בלבד ובאופיים אינם מצויים בשליטת החברה. אין באמור כדי לגרוע מגורמי סיכון ייחודיים הנוגעים בחברה כפי שפורטו בטיוטות התשקיף של החברה ומהווים חלק בלתי נפרד ממידע צופה פני עתיד כאמור על ההסתייגויות הכלולות לעיל ולהלן. לפיכך, קוראי מצגת זו מוזהרים בזאת, כי תוצאותיה והישגיה בפועל של החברה בעתיד עלולים להיות שונים מהותית מאלו שהוצגו במידע צופה פני עתיד המובא במצגת זו. החברה אינה מתחייבת לעדכן או לשנות תחזית או הערכה כאמור ואינה מתחייבת לעדכן מצגת זו. אין באמור במצגת זו כדי להוות ייעוץ מיסויי או עסקי והיא אינה מהווה תחליף להתייעצות עם יועצים מתאימים בהיבטים אלו. על כל משקיע פוטנציאלי לפנות לקבלת ייעוץ והדרכה בקשר עם השקעות פוטנציאליות, לרבות ייעוץ מס בהתחשב בנתוניו ומצבו המיסויי.

CONFIDENTIAL

TopGum from 1 to 6

The 1st Vegan, Clean Label, Tasty, Sugar Free/No added Sugar Gummy

TopGum has 2 main activities: the legacy confectionary and the fast growing supplement

3 main shareholders: 33.3% Owned by each Hai Hayun and Roi Lusternik; And 33.3% by AP Partners Fund with Arkin Holdings and Discount Capital as Co-Invest

4 dunams of State-of-the-Art GMP production facility in Sderot and 3.5 dunams of warehouse

In last two years TopGum's, expand its efforts to 5 new geographies, serving blue chip market leaders companies

6 top notch R&D professionals, out of 100 employees, utilizing cutting edge food-technology, to innovate the next gummy generation

Who we are…

HAGAI STADLER Chairman Joined TopGum: 2020

DORON DELOUYA VP Product Foundation Joined TopGum: 2020 8+ years of industry experience

HAI YAKOV HAYOUN President TopGum Co-Founder: 2004

HADAS RINAT-LUZ QA/QC Director Joined TopGum: 2017 20+ years of industry experience

AMICHAI BAR-NIR CEO Joined TopGum: 2019 20+ years of industry experience

CHRISTOPHER LAMB VP Sales – North America Joined TopGum: 2021 20+ years of industry experience

ROY BIRMAN VP Operations Joined TopGum: 2020 15+ years of industry experience

AMIT HYZKIHU VP R&D and Open Innovation Joined TopGum: 2018 8+ years of industry experience

TZUKI HARUSH CFO Joined TopGum: 2018 15+ years of industry experience

JENNIFER TOOMEY New product Development & Marketing – North America Joined TopGum: 2021 20+ years of industry experience

Our Story

Established by Hai Hayun and Dov Lusternik TopGum entered the confectionery market

2018

2004

Production facilities were upgraded by dozens million NIS investment, with new state-of-the-art production line and additional 3,500m² logistics center

TopGum launched the development of its supplement gummies activity, initiating the development of the GUMMICEUTICALS™

for the GUMMICEUTICALS™

AP Partners investment, gained 50% of the board of directors. New CEO is nominate, upgrading the managerial infrastructure.

Establishes subsidiary in the U.S; First sale of GUMMICEUTICALS™. Reaching to a supply agreement with strategic customers. Working on innovation and R&D projects

State of the Art Production Facility

https://www.youtube.com/watch?v=ooq6r94yI4A

• TopGum has invested significantly over the past three years to implement advanced production and bottling machinery, allowing it to achieve a consistent, homogeneous distribution of nutrients and fulfill all its customer's manufacturing needs.
• The Company | 7 • Topgum holds 4000 square meter of production facility in Sderot, 3500 square meter of warehouse (owned by the company), and 420 square meters of office in Tel Aviv.

TopGum's Focus Transformation

CONFIDENTIAL

Supplement is Taking The Lead

All figures are in NIS

Q1 2021 figures are unaudited and with accordance to internal reports

Confectionary Supplements

9 The Company |

Sugar-Free is The Disruptor Of 6 BUSD Market Sugar Sugar Free

Systemic and Disruptive Low-to-No Sugar Transition Across Ingestible Categories…

Sugar is the leading item checked on nutrition labels, surpassing calories, sodium and fat

50%+

Of consumers have actively switched from "traditional" products to low-sugar alternatives

… Has Yet to Occur in Chewable Supplements, Where There is Particular Relevance Given Health Motivations

Despite the huge consumer demand and the billions of dollars invested in gummy production and new product innovation by large pharma and CPG players, there is a massive opportunity for the intrinsic victory of a sugar-free alternative

Gummiceutical™ is Making an Impact

Sugar Free / No Added Sugar

Unlike its sugar-laden competitors, meets U.S. regulatory requirements for "Sugar-Free" claim

Cost Effective

Competitive pricing based on unique IP, efficient production & scalable supply chain

Great Taste & Texture

Organoleptic criteria meets highest consumer standards and preferences

Multi-Category Line

Portfolio of products across high-growth functional segments (immunity, digestive, mood, etc.)

Intellectual Property

Patent pending* formulation based on proprietary know-how and 15 years of experience

Prebiotic

Formulation rooted in dietary fibers, allowing prebiotic benefits and supported digestive claims

Vegan

Certified Vegan gummy, with no animal based ingredients

Clean Label

No artificial or alcoholic sugars added; vegan formulation with no animal-based ingredients

TopGum's First Steps in New Geographies Local International

CONFIDENTIAL

Jason Brown Persona former CEO "Building a company is 20% idea 80% the team of people who execute on the idea. Top Gum has both, a brilliant business model and a devoted team from top to bottom that have proven to deliver on time on budget".

About Persona

Persona™, a fast growing brand of Nestlé Health Science )NHSc( company, creates science-backed, uniquely personalized vitamin programs. Each customized program uses high-quality, bioavailable ingredients, delivered to customers' doorsteps. The proprietary algorithm used for the Personalized Nutrition assessments is based on scientific research reviewed by the company's team of MDs, RDs and nutritionists, and factors in lifestyle, individual needs, and prescription medications to deliver vitamin and supplement recommendations as unique as the consumer. Persona Nutrition is available in more than 140 countries via worldwide shipping.

Blue-Chip customer base Local International

Over 30 new International Customers in NPD process

End to end Solution Generic product Tailor made

The Company | 15

CONFIDENTIAL

~100

Fully Integrated Manufacturing Capabilities

Best-in-class Chocotech jelly manufacturing system installed in 2018

The Kitchen Gummy Production Mogul Drying & Coating Bottling & Packaging

Best-in-class two-headed system for dual production runs

Few days process post-gummy production to dry and coat finished molds

Fully-automated [supplier] bottling line to be implemented in Q3 2021; complements base three-line bulk packaging system

Extensive Gummies Solutions Generic product Tailor made

Everyday Nutrition

Health

Digestion

Heart Health

Cholesterol

Urinary Health

Super Foods Eye Care

Blood Sugar Management

Balance

Mood

Beauty From Within Positive

Sleep

Blood Pressure

Vitamin D Vitamin C

Multi-Vitamin

Zinc

Magnesium

Vitamin B12

Iron

Specific Health Applications VMS Herbs and Extracts Age related

Echinacea

Ashwagandha

Spirulina

Kids

Teenagers

Adults

Seniors

The Company | 17

Beetroot

Passion Flower

Green tea

USDA Organic Approval*

USDA certified gummy supplements. Pilot trials in process

Revolutionized Functionality*

Highly innovative delivery system. Grant (IIA) received

New Production Technology*

Removal of starch from TopGum gummies

OTC Gummies*

Commercial gummies for OTC applications (e.g. Melatonin)

4 Growth Engines to be backed by IPO Capital

New Production Facility in Israel to increase 1 production capacity and later on in the US

Launch of new gummies generation 2 and innovative solution

New Geographies and Partnerships 3 with New international top Brands

Explore M&A opportunities support company 4 strategic targets

TopGum aims to capture approximately 5% of expected B2B supplement in 5 years

The Company

The Market

The Numbers

The TL;DR

Growing ~56BUSD\$ dietary supplement market

• Supplement market's size of ~56BUSD billion by 2020.
• 6% annual growth (14.5% growth between 2019 to 2020).
• In 4 years market estimated to reach ~66.24BUSD.
• US market is ~50% of the global dietary supplements

The growth of the nutritional supplements market is backed by strong trends:

• An aging population 1
• Increased consumer awareness for preventative healthcare 2
• The rise of the self-directed consumer 3
• Life-style 4

Immediate Target Market Size: ~1.5BUSD

Double Digit Growth Back By Strong Factors

The Numbers

The TL;DR

Strong Double Digit Organic Growth

* Q1 2021 figures are unaudited and with accordance to internal reports

EBITDA (K NIS)*

Revenues (K NIS)*

The Numbers | 25

P&L 2018-2020

000' NIS	2018	2019	2020
Revenues	52,998	66,347	82,306
Cost of goods sold	38,657	47,776	57,089
Gross profit	14,341	18,571	25,217
GP%	27%	28%	31%
SG&A	16,130	16,121	18,970
Operating profits	-1,789	2,450	6,427
Net profits	-3,050	-588	2,684
EBITDA	3,157	6,895	11,134
EBITDA %	6%	10%	14%

BS 2019-2020

000' NIS	2019	2020
Current assets	37,263	48,279
Non current assets	43,352	44,131
Total assets	80,615	92,410
Current liabilities	69,619	32,287
Non current liabilities	6,266	13,328
Equity	4,730	46,795
Total Liabilities and Equity	80,615	92,410
Working capital	-32,356	15,992
Net debt	49,014	14,489
Equity	4,730	46,795

The Company

The Market

The Numbers

The TL;DR

TopGum Summary

Best-in-class production capabilities

GMP-certified state-of-the-art plant, labs and warehouses headquartered in Israel, leveraging over a decade of gummy production experience and know-how.

Blue Chip Customer Base

Serving some of the largest global nutrition companies that are seeking to provide unique gummy-based delivery formats.

Proven Rapid Development Process

By utilizing the Company's advanced food technology capabilities, TopGum is able to provide a differentiated and curated selection while enabling a rapid commercialization process.

Diverse range of Nutritional Solutions

Holistic product portfolio consisting of 40+ efficacious, healthy and proprietary formulas that target some of the fastest-growing categories of the nutritional supplement industry.

Superior Gummy Products

Excellent organoleptic properties providing great texture, flavors and consumer experience; proprietary Gummiceutical™ fiber base matrix completely free of sugar, sweeteners and sugar alcohols.

Ongoing Focus on science and Innovation

Currently in development new advanced gummies, designed to support expansion across a range of regulated industries and geographies.

Thank you.