Polyram Plastic Industries : Company Presentation

Company

Presentation

March 2024

Disclaimer

• This presentation was prepared by Polyram Plastic Industries Ltd. (hereinafter: the "Company" and/or "Polyram") as a general presentation about the Company and is not intended to replace the need to review Polyram's full reports to the Securities Authority and the Tel Aviv Stock Exchange. Including, inter alia, Polyram's reports including the Polyram's report for 2022, 2023 and immediate reports (hereinafter: "Polyram's Reports") prior to making a decision regarding investment in Polyram's securities.
• The information contained in the presentation does not constitute advice, recommendation, or opinion regarding investment and does not constitute an offer to invest and/or purchase securities of Polyram (and in particular does not constitute an "offer to the public" or "sale to the public" of any kind) and does not replace the 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 Polyram in relation to these issues and does not include the full results and financial information of Polyram and the notes to them, and/or Polyram's business plans and/or Polyram's risk factors.
• The presentation includes data on international markets, including growth volumes, penetration rates, sales, statistics, etc. It should be emphasized that this data is based on public data and Polyram's assessments and does not constitute any facts and/or representations.
• This presentation may include forward-looking information as defined in the Securities Law, 1968 (hereinafter: "forward-looking information"), including forecasts, and subjective assessments by Polyram's management as of the date of publication of the presentation, which although Polyram 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, and affected by factors beyond the control of Polyram, each of which, or a combination thereof and the realization of which risk factors characterize Polyram's activities, may materially impair results. The activities of Polyram 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 Polyram. Polyram 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 Polyram'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.
• Polyram's assessments regarding Polyram's objectives are based, inter alia, on Polyram's assessments regarding trends in the Company's business in particular and trends in the market in which Polyram operates in general, as well as Polyram's management assessments regarding potential and market trends in Israel and international markets as of this report. These assessments may not materialize and/or materialize significantly differently from Polyram's assessments, inter alia, as a result of factors external to Polyram and which are not under control, including, inter alia, changes in the economic situation in Israel and abroad.
• To the extent that there is a conflict 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.

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Polyram - Overview

Polyram is a global solution provider, manufacturer and marketer of advanced functional raw materials for the plastic industry worldwide

Three operating divisions:

• Bondyram
• Engineering Plastics (EP)
• Polytron

1,400 products

Sophisticated

manufacturing processes

Tailor Made solutions

Over 950 customers

Established in

1986

Financial Data (ILS in millions)
	2023	2022	Q4.2023	Q4.2022
Revenues	1,001	1,104	231	238
Net Income	85	104	16	14
EBITDA	153	166	38	28

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Management

Solid, Loyal and Experienced Management Team

FIMI

Public 30.9% 42.8%

Ram-On

26.3%

Ishay Davidi	Yuval Peleg | CEO
Chairman of the Board	32 years in the company
Founder and CEO of the FIMI Fund	CEO since 2015

Netanel Guez	Dror Zur	Idan Rephaeli	Amit Koren	Ziv Herling	Eliyahu Katan	Gabriela Marziparo	Efrat Gilat	Ofir Kayam	Yaara Avrahami
CFO	CPO	COO	Local Market Manager	Bondyram Manager	Bondyram TL	Polytron Manager	EP Export Manager	EP category	Quality Manager
7 years	37years	5 years	2 Years	and VP Global Sales	Manager	12Years	New board member	sales specialist	23Years
				22 years	9Years		10Years

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The Plastic Industry - Value Chain

PolymerSu		Producers
Compounders	of Final
ppliers
	Products

Segments Diversity

Automotive ~40%

Food Packaging ~20%

Water Supply & Irrigation

Systems Industry ~20%

DIY

Office Supplies Manufacturers

E&E

Robotics Industry

Recycled Plastics Market

Construction

Confidential	5

CEO Highlights

Since the start of the war, the company has continued to operate fully in Israel and around the world without any difficulties in production or transportation of products, thanks to the company's structure and distribution, and this is reflected in the results.

The company expects to exercise the option to purchase the remaining 49% of shares of the US marketing company in the second half of 2024.

The company presented a strong cash flow from operating activities of NIS 270 million in 2023, and NIS 78 million in the fourth quarter of the year.

The fourth quarter was stronger than both the fourth quarters of the past two years.

We continued to reduce the company's debt by more than half to only NIS 132 million, compared to NIS 305 million at the beginning of the year. The debt-to-EBITDA ratio is less than 1.

The board of directors has decided to pay a dividend of NIS 10 million, bringing the total dividends paid for 2023 to NIS 58 million.

The slowdown in the local market continued in the fourth quarter, but the company retained all of its customers.

The company estimates that demand in 2024 will grow compared to 2023, and we see a growth vector in the local market.

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Growth engines of Polyram

Recycling, innovation, and sustainability are the core values of the firm. The company develops sophisticated recycled raw materials to lead the industry in the coming years through its recycling plants in UK, Germany, and Israel.

Polyram has established its presence in the American market by producing thermoplastic compound products in the USA and building a distribution system.

The company aims to develop synergies in the German market, the most industrialized country in Europe, by distributing Polyram products to MCT customers.

Expanding the market for elastomer products, particularly thermoplastic rubber produced at MCT, throughout Europe using its subsidiaries and the local market.

Intending to penetrate the field of electric vehicles and charging stations by developing advanced materials for new applications.

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Innovation-Recycling-Sustainability

Polyram's field of material recycling is regarded as one of the company's primary growth engines

Development and marketing of recycled materials

Polyram UK specializes in recycled materials.

Entering to recycling market through the acquisition of MCT- Polyram MCT produces two major products with recycled materials: (1) Polyolefins with minerals and glass fibers (2) Thermoplastic rubber (elastomers).

Dedicated production lines-to meet the increasing demand in the field of recycling, dedicated production lines have been established at a factory in UK and a factory in Israel.

Entering into new projects in the automotive industry-

In a bid to improve the sustainability of their operations, more automotive manufacturers are making use of recycled material in vehicle interiors.

Progress in the ESG indicators, environment, Social and Corporate

Governance, while building and managing an environmental policy.

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Global Footprint

6 Production sites

10 Subsidiaries

9 Logistic centers

40+ Distributors

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Headquarters and Plant - Israel Israel - Afula Plant

China Plant

U.S.A Plant

UK Plant

Germany Plant

Polyram - Milestones

Established	UK Plant	Germany Plant
in Israel
acquired	acquired

EP

Polyram

100%

Polyram

100%

Polyram

51%

Polyram

100%

Polyram

100%

Polyram

100%

Polyram

100%

division

UK

France

U.S.A

Italy

Germany

India

MCT

Germany

1986

2002

2004

2005

2008

2011

2012

2013

2014

2015

2016

2017

2019

2020

2022

					FIMI acquires 65%			IPO
Bondyram	Polytron	Afula Plant	China Plant	of Polyram	U.S.A Plant	Israel
launch	launch
			Polyram	100%	Polyram	100%	Polyram	100%
			China		Spain		Compounds

Confidential

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