Top Gum Industries Ltd. — Investor Presentation 2021

Jul 6, 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 בתלאביב (להלן, בהתאמה: "רשות ניירות ערך" ו- "הבורסה")ככל שיינתן. מצגת זואינה מתיימרת להקיף או להכיל 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 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 את כל המידע העשוי להיות רלבנטי לצורך קבלת החלטה כלשהי בנוגע להשקעה בניירות הערך של החברה ובכלל. ככל שקיימתסתירה בין האמור במצגת זו לבין טיוטות התשקיף יגבר האמור בטיוטות התשקיף. יש לקחת בחשבון כי נתוני 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 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 אינומהווה עובדה מוכחת והוא 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 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 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 התממשותושל 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 באופןחלקי 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.

The Company

The Market The Numbers The TL;DR

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

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

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

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

Who we are…

8+ years of industry experience

HAI YAKOV HAYOUN President HAGAI STADLER Chairman Joined TopGum: 2020

TopGum Co-Founder: 2004

AMICHAI BAR-NIR CEO Joined TopGum: 2019 20+ years of industry experience 15+ years of industry experience VP Sales – North America

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TZUKI HARUSH CFO Joined TopGum: 2018 15+ years of industry experience ROY BIRMAN VP Operations Joined TopGum: 2020

JENNIFER TOOMEY New product Development & Marketing – North America Joined TopGum: 2021 20+ years of industry experience AMIT HYZKIHU VP R&D and Open Innovation Joined TopGum: 2018 8+ years of industry experience

QA/QC Director DORON DELOUYA VP Product Foundation Joined TopGum: 2020

CHRISTOPHER LAMB Joined TopGum: 2021 20+ years of industry experience HADAS RINAT-LUZ Joined TopGum: 2017 20+ years of industry experience

The Company | 5

Our Story

2004 Established by Hai Hayun and Dov Lusternik TopGum entered the confectionery market

2018

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

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

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

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

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State of the Art Production Facility

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

• bottling machinery, allowing it to achieve a consistent, homogeneous distribution of nutrients and fulfill all its customer's manufacturing needs.
• The Company | 7 by the company), and 420 square meters of office in Tel Aviv.

TopGum's Focus Transformation

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Supplement is Taking The Lead

Confectionary Supplements

All figures are in NIS

Q1 2021 figures are unaudited and with accordance to internal reports

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

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

… 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

SOURCE: NPD Group, Food & Beverage Insider, Mintel.

The Company | 10

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 no animal based ingredients

Vegan

Certified Vegan gummy, with

Clean Label

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

Jason Brown Persona former CEO Persona™, a fast growing brand of Nestlé Health Science (NHSc) company, creates "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

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

Fully Integrated Manufacturing Capabilities

manufacturing system installed in 2018

Best-in-class Chocotech jelly

Few days process post-gummy production to dry and coat finished molds Best-in-class two-headed system for dual production runs

The Kitchen Gummy Production Mogul Drying & Coating Bottling & Packaging

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

The Company | 16

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Extensive Gummies Solutions Generic product Tailor made

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Strong Pipeline of Next Gummies Generations* Limited innovation Market leader

* All products are under development, and yet to be finalized and/or commercialized; As all R&D projects, could be failed.

The Company | 18

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 | 19

The Company

The Market

The Numbers

The TL;DR

• In 4 years market estimated to reach ~66.24BUSD. Growing ~56BUSD\$ dietary supplement market

• Supplement market's size of ~56BUSD billion by 2020.
• 6% annual growth (14.5% growth between 2019 to 2020).
• 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

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The Market | 22

Double Digit Growth Back By Strong Factors

Mintel, NPD Group, Nutritional Outlook and Allied Market Research

The Market | 23

The Numbers

The TL;DR

P&L 2018-2020

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
Adjusted EBITDA	6,037	9,775	13,309
Adjusted EBITDA %	11%	15%	16%

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 Numbers	27

The Market The Numbers The Company

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.

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The TL;DR |

Thank you.