Unitronics — Investor Presentation 2014

Aug 31, 2014

UNITRONICS (1989) (R"G) LTD.

PRESS RELEASE Airport City, Israel August 31, 2014

***Regulated Information*** ***For Immediate Release***

Re: An updated presentation to be presented in the Capital Market

Airport City, Israel – August 31, 2014 – Unitronics published the attached Report, pursuant to the requirements of Israeli law, in concerning with an updated presentation to be presented in the Capital Market

About Unitronics

Unitronics (1989) (R"G) Ltd. is an Israeli company that engages, through its Products Department, in the design, development, production, marketing and sale of industrial automation products, mainly Programmable Logic Controllers ("PLCs"). PLCs are computer-based electronic products (hardware and software), used in the command and control of machines performing automatic tasks, such as production systems and automatic systems for industrial storage, retrieval and logistics. The Company also engages, through its Systems Department and/or its subsidiaries, in the design, construction and maintenance services in the framework of projects for automation, computerization and integration of computerized production and/or logistics systems, mainly automated warehouses, automated distribution centers and automated parking facilities. The Company's PLCs are distributed by over one hundred and forty distributors (and a wholly owned US subsidiary) in approximately fifty countries throughout Europe, Asia, America and Africa. The services of the Systems Department are provided to customers in Israel and also outside Israel.

This press release contains certain forward-looking statements and information relating to the Company that are based on the beliefs of the Management of the Company as well as assumptions made by and information currently available to the Management of the Company. Such statements reflect the current views of the Company with respect to future events, the outcome of which is subject to certain risks and other factors which may be outside of the Company's control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those described herein as projected, anticipated, believed, estimated, expected or intended.

August 31, 2014

Subject: An updated presentation to be presented in the Capital Market

Follows the publication of a presentation to be presented in the capital market, dated August 21, 2014 (reference no. 2014-01-139704), the publication of the Company's financial report to June 30, 2014, dated August 27, 2014 ( reference no. 2014-01-143934) and to an Immediate Report of the Company dated August 20, 2014 (reference no. 2014-01-137931) in which the Company reported that it is considering an offering of Debentures (Series 5) of the Company to the public in Israel only, pursuant to the Shelf Prospectus dated August 20, 2014 (reference no. 2014-01-137235) and a Shelf Offering Report that shall be published as required by law. The Company hereby publishes an updated presentation it intends to present to various parties in the capital market (hereinafter: "the presentation").

The Company is publishing this presentation as a precaution, since it may include information presented in a different manner to the manner in which it was presented in reports to the public published by the Company. This presentation was prepared mainly as a summation and for the sake of convenience, and is not intended to replace the need to review the reports issued to the public by the Company.

It is hereby clarified that the presentation does not constitute an offer to purchase securities of the Company or an invitation to receive such offers, and that it is intended solely for providing information. For the avoidance of doubt, it is further clarified that the Company does not undertake to amend and/or revise the information included in the presentation in order to reflect events and/or circumstances occurring after the date of the preparation of the presentation

Sincerely, Unitronics (1989) (R.G) Ltd.

Unitronics

Capital Market Presentation August 2014

ForwardForward-looking information statement looking

This presentation by the Company includes forward-looking information as defined in the Securities Act, 1968. Such information includes, inter alia, forecasts, targets, assessments and estimates as well as other information with regard to future events or matters, whose materialization is uncertain and may be impacted by factors which may not be evaluated ahead of time and which are outside the Company's control.

Forward-looking information is based on estimates by Company management which are based, inter alia, on information available to management upon compiling this presentation, including assessment of the Company's operating markets, statistical data and other statistical publications by various entities, whose content has not been independently verified by the Company and therefore the Company is unable to vouch for their correctness.

Materialization of this forward-looking information, in whole or in part, or different from that anticipated, or non-materialization thereof would be impacted, inter alia, by marketing challenges to introduction of products, systems and services being developed and/or offered by the Company, challenges to increasing awareness of consumption of such pr challenges awareness products systems and services failures of distributor operations , services, failures distributor or of negotiations with potential distributors and/or customers, changes in layout of the markets or competition therein as well as by risk factors associated with Company operations, including developments in the macro-economic environment and external factors which impact Company business.

This presentation does not constitute an offer nor invitation to purchase and/or allot Company securities. This presentation is provided merely for conciseness and convenience and does not replace the need to peruse the Company's immediate reports.

The forecasts and estimtes are based on data and information available to the Company upon compiling this presentation and the Company does not undertake to update and/or modify these forecasts and/or estimates so as to reflect events and/or circumstances which may prevail after the compilation of this presentation.

This presentation may include data and information not included on the Company's financial statements and immediate reports as made public, or which may be presented differently from how they were included on public reports issued by the Company. In any case of contradiction bet een reports made p blic and information in this presentation the former shall pre ail between public presentation, prevail.

Unitronics – overview

Long-established Israeli company with international presence

International operations in fields of control, automation and logistics since 1989

Revenues in 2013: NIS156 million

Cumulative positive cash flow from current operations: NIS 56 million (from end of 2009 through June 30, 2014) Shareholder equity: NIS 45 million, 23% of total assets (as of June 30, 2014).

Some200 emplo ees employees

Departments: software, hardware, electric, control, mechanics, marketing, QA, management and all support disciplines

Active, expanding international marketing operations Some 165 distributors world-wide and two wholly-owned subsidiaries in USA

Th j ti t Three major operating segments

• • Products operating segment – (Control products) dozens of products and hundreds of thousands of active installations world wide
• Systems operating segment (Logistics) design and construction of automated warehouses and logistic centers
• • Parking operating segment – (Parking solutions) design and construction of automated parking garages and components for these

Unitronics – stability based on on 3 operating segments

Logistics systems Project‐based integration activity

Design, development, constructionautomated logistics systems, automated warehouses, distribution centers, sophisticated conveyance systems – one‐stop shop approach

Products operating segment Electronic off-the-shelf products

Design, development, manufacturing and international marketing of advanced industrial control and automation products, providing added value in specified niches for use in various industrial sectors

Parking solutions operating segment Combinedprojects and

Design, development, manufacturing and i t ti l k ti f

Products operating segment

Unitronics – Products operating segment

Off-the-shelf control and automation products

• Unitronics is involved in design, development, manufacturing and international marketing PLC programmable controllers.
• Controller the "brain" of the machine, electronic, computer-based products used to control machinery and processes.
• Controllers are used in all industrial sectors: pharmaceuticals automotive pharmaceuticals, automotive,

food, electronics, metal, plastics, agriculture, water, paper, recycling, energy etc.

Major customers: Machine manufacturers and integrators (design and construction entities) for automated systems and plants. Hundreds of thousands of units sold world-wide.

• Attendance and access control systems
• Used by patients and medical staff
• Many installations in the USA

Extrusion plant for production of wires (USA)

Theme park control (Efteling, Holland)

Unitronics – Products operating segment

Outstanding achievements in 2013, and 2014

• Launch of new generation controllers
• Awarded prize in competition by Control Engineering magazine
• Continued development of the Chinese market: Sales on the First half 2014- approx. 350 thousand\$
• Launching the first sign of Samba product line The product line's new Low Cost Division
• SM35 was launched last April
• Very rapid penetration rate - sales of over 600,000 ₪ Ad h n more than 1,000 uni i h fi h h its in the first three months launch

Logistics Logisticssystems systems operating segment

Unitronics – Logistics systems operating segment

Project-based integration activity

• Unitronics is engaged in design, development, construction and integration of automated logistics systems, automated warehouses, distribution centers, sophisticated conveyance
• C t i d j tf t Customized projects for customers
• Dominant in this area in Israel;

Unitronics logistics systems

Unique added value

• One-Stop shop
• Assisting p g, g , customers prior to decision making, strategic, functional and engineering design, supply chain analysis and economic feasibility of solution
• Construction and integration of all system components ( ) construction, mechanical, electric, control, software)
• Service and maintenance

Establishment of a national logistics center For Teva S.L.A. Group in Modiin industrial zone

17

Logistics systems – examples in the field

Construction of national logistics center for Strauss Group in Shoham Industrial Zone

18

Parking solutions operating operating operatingsegment segment

Unitronics parking solutions

Automated parking – unique added value

• This emerging field offers automated solutions to parking challenges in many citi d th ld ities around the world:
• capable of providing 2-3 times more parking spaces for a given area
• Price p p gp er parking space is similar to conventional parking
• Improved driver experience, enhanced safety, time saving for drivers
• "Green" solution (reduced pollution reduced Green pollution, fuel consumption, reduced power consumption)
• Operating cost is lower than for conventi l kitional parking

Unitronics – Parking solutions operating segment

Combined projects and off-the-shelf products

• Design development and construction of Design, development automated parking systems, projectoriented operations
• Development of building blocks (robotic component) t l t d ts), control systems and management software for automated parking
• Direct sales and through distributors

UNITRONICS^® Parking solutions - 916 Garden St.

Parking solutions - 1415 Park Ave.

Parking solutions – international operations

Systems and customers

• Long sales processes (2-4 years)
• Customers are mostly municipalities institutions and private municipalities, developers; to date, agreements have been signed with:
• Hoboken, New Jersey, municipality
• (USD 2 million) 312 parking spaces ( ) Mexico City, Mexico, private developer (USD 3 million) 200 parking spaces
• Tel Aviv, Israel, private developer (NIS 5.2 million) 140 parking spaces
• West Hollywood California municipality Hollywood, California, (USD 2.6 million) 200 parking spaces
• Tel Aviv, Israel, private developer
  • (NIS 1.2 million) 13 parking spaces
• Hoboken, New Jersey, private developer (USD 3.8 million) 400 parking spaces

Parking solutions – international operations

Systems and customers

(continued) signed agreements

• Manhattan, New York, private developer Manhattan, (USD 0.9 million) 12 parking spaces
• Tel Aviv, Israel, (4 customers) private developers (NIS 7 million) 115 parking spaces
• Ramat Gan, Israel, (3 customers) private developers (NIS 5 milli ) on 88 parking spaces
• Hoboken, New Jersey, private developer (USD 2.6 million) 150 parking spaces

Financial statements Q2 2014

Over 25 years of commitment to excellence

Revenues - recent years

Condensed income statement and cash flow data

NIS in thousands

	2 0 1 3	2 0 1 2	2 0 1 1
Re ve nu e s	5 1 6, 1 7 9	1 4 2, 1 2 6	1 4 1, 7 0 2
G in ro ss co m e	4 3, 4 5 1	3 6, 8 0 4	3 8, 9 8 3
G in ro ss m ar g	2 7 %	2 6 %	2 7 %
De lo t, t ve p m en ne	5, 7 0 6	5, 5 7 6	2, 9 9 1
Sa le d ke in t s an m ar g	1 0 6 7, 5	1 6 1 6 7,	1 4, 0 9 1
G l a d dm in is ive tra t en er a n a	1 1, 2 4 7	8, 8 2 8	8, 2 0 1
O t in in p er a g co m e	9, 4 4 2	4, 7 8 4	1 3, 7 0 0
F in in Ex Ne t an c g p en se s,	7, 8 3 2	3, 4 9 8	5, 7 6 7
f ( ) Ta be i t ta in x ne xe s on co m e	( ) 1, 4 4 4	1 1 4	-
Ne in t c o m e	1 6 6	1, 4 0 0	9 3 3 7,

C f i h lo d d by a s w p ro v e io t o t cu rr e n p e ra ns	3, 3 3 2	2 2, 3 1 4	5, 8 9 9
C C h f f lo l i i d d d by b a s w p ro v e f in in io t a nc g o p e ra ns	2 9, 0 0 2	( 1 1, 0 5 1 )	4 7, 8 5 7
C h f lo i d d by a s p ro e w v in io tm t o t ve s e n p e ra ns	( 1 2, 9 ) 5 7	( 8, 4 ) 5 7	( 4, 8 2 8 ) 5

Condensed Condensedincomestatement statement andcashflowdata – quarterly quarterly

NIS in thousands

	Q 2 2 0 1 4	Q 1 2 0 1 4	Q 4 2 0 1 3	Q 3 2 0 1 3	Q 2 2 0 1 3
Re ve nu es	3 9, 9 7 7	4 0, 5 4 8	4 4, 1 3 5	3 9, 5 5 8	4 0, 0 9 3
G inc ro ss om e	1 2, 1 0 5	1 1, 3 4 0	1 2, 5 8 8	1 1, 9 0 9	1 1, 1 7 1
G in ro ss m ar g	3 0. 4 %	2 8. 0 %	2 8. 5 %	3 0. 1 %	2 7. 8 %
De lop t, t ve m en ne	1, 6 0 3	1, 3 0 1	1, 2 0 6	1, 1 4 3	1, 1 0 3
Sa les d ke ing t a n m ar	4, 5 8 5	4, 3 9 5	4, 7 0 7	4, 2 7 5	4, 1 9 3
Ge l a d ne ra n dm in is tra t ive a	2, 6 7 0	2, 6 2 6	3, 1 5 6	2, 5 3 3	2, 8 5 0
O t he r e xp en se s	-	2, 1 9 1	-	-	-
O t ing inc p er a om e	3, 2 4 7	8 2 7	3, 1 9 5	3, 9 8 5	3, 0 2 5
F ina ing Ex Ne t nc p en se s,	2, 0 1 2	3 8 5	1, 2 0 9	2, 0 3 4	1, 6 1 2
Ta ex p en se s x	4 0 9	1 9 0	1, 4 4 4	-	-
Ne in t co m e	8 2 6	5 2 2	8 6 6	5 1, 9 1	1, 4 1 3
Ca h f lo i de d by s w p ro v io t o t cu rre n p er a ns	5 1, 0 9	5 9, 6 2	5 2 1, 7 3	( ) 1, 7 0 4	( 5 ) 1, 1 0
Ca f h low i de d by s p ro v f f i ina ing i t t i ion nc o p er a s	( 9 6 8 )	( 1 2, 9 3 8 )	( 1, 1 6 9 )	( 1 3 ) 7, 5	( 1, 0 6 ) 4
Ca h f low i de d by s p ro v inv tm t o t ion es en p er a s	( 0 3 6 ) 7,	1 4, 9 4 5	( 4, 6 4 6 )	2, 2 8 7	( 4, 6 2 1 )

Condensed Condensedbalance balancesheetinformation information andfinancialfinancialratios

NIS in thousands

	/ / 3 0 6 2 0 1 4	/ / 3 1 1 2 2 0 1 3
T l t t o a a s s e s	1 9 7, 6 1 2	2 0 6, 1 5 3
T t l t t o a c r r e n a s s e s u	1 2 8, 1 1 6	1 2 0, 9 7 7
Ca h, h e iva len ts t ia b le s ca s q u an n eg o i t ies se cu r	7 0, 3 6 3	6 4, 6 6 7
Inv to d w k inv to in en ry an or en ry p ro g re ss	3 2, 4 0 9	3 3, 7 6 9
T t l t t ( inc lu d ing f ixe d o a n o n- c u r r e n a s s e s ) ts ts l e ta te d in ta i b le ts as as se se re a s an ng as se ,	6 9, 4 9 6	8 5, 1 7 6
T l l i b i l i i t t t o a c u r r e n a e s	3, 0 9 7 4	6 3, 8 3 7
Cu f i ies de be t m tu t tu rre n a r o n re s	1 8, 0 2 3	1 1, 8 6 4
Tr de b les a p ay a	2 2, 5 3 9	1 5, 4 5 2
O he b le t ts r a cc ou n p ay a	2 9 7 , 2 8	3 1, 8 8 9
T t l t l i b i l i t i o a n o n- c u r r e n a e s	9, 9 7 7 5	9 8, 5 5 3
Ba k loa n ns	6, 0 2 6	7, 3 1 9
De be tu n re s	6 9, 4 5 5	8 7, 2 5 1
E i t q u y	4 4 4 , 8 0	4 3, 7 6 3
W k ing i l ta or c ap	0 6 5 5, 7	5 7, 1 4 0
Cu io t r t rre n a	1. 7 5	1. 9 0

Unitronics – in summary

• Growing Israeli industrial company In business since 1989
• Experienced, conservative management team
• Stable and growing operating segments over time

International operations, international reputation

• Financial robustness
• Liquid means (cash, cash equivalents and negotiable securities and securities): NIS 70 million (June 30, 2014)
• Long-term liabilities: Long-term bank loans: NIS 6 million, debentures: NIS 69 million (June 30, 2014)
• Cash flow provided by current operations NIS 56 million
  • (from end of 2009 through June 30, 2014)
• Shareholder equity: NIS 45 million (23% of total assets assets, June 30, 2014)

Thank you