Slide 1: Elco Group Capital Market Presentation, Q4 Overview 2025
ELCO GROUP CAPITAL MARKET PRESENTATION Q4 Overview, 2025
Slide 2: Tribute to Israel Defense Forces and security services
THE ELCO GROUP STANDS SHOULDER TO SHOULDER WITH THE BRAVE SERVICEMEN AND WOMEN OF THE ISRAEL DEFENSE FORCES AND SECURITY SERVICES, WHO CONTINUE TO PUT THEIR LIVES ON THE LINE TO PROTECT OUR COUNTRY ON ALL FRONTS. WE GRIEVE WITH THE FAMILIES OF THE FALLEN AND HOPE FOR SAFER, BETTER, MORE PEACEFUL DAY
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER This presentation does not constitute and should not be construed as an offer of securities by Elco Ltd. ("the Company") to the public. This presentation is intended solely to present basic marketing information on behalf of the Company. The information contained in this presentatio
Slide 4: About Us: Who Are We?
WHO ARE WE? THE ISRAELI INVESTMENT COMPANY WITH A GLOBAL PRESENCE OUR Prudent management via a lean, Holding companies and ventures Growth and improvement focused executive team in which the Group can exercise while identifying and effective control realizing opportunities within OPERATIONAL Focus o
Slide 5: Elco – Facts & Figures
ELCO – FACTS & FIGURES A FAMILY-CONTROLLED PUBLIC COMPANY ACTIVE FOR OVER 75 YEARS IN ISRAEL & WORLDWIDE Traded on Indexes 63.5% 24,700 NIS 3.6 Established 1949 Approx. TA 90, TA 125 Approx. Controlling Interest Employees Worldwide TA FAMILY Billion Market Cap1 Approx. Approx. Approx. Approx. NIS 11
Slide 6: Activities
ACTIVITIES LEADING ISRAEL’S MAIN GROWTH ENGINES, WITH SIGNIFICANT & GROWING OVERSEAS ACTIVITIES )46%( )45%( )51%( )61%( )29.8%( Public Company (TA-90) Public Company (TA-90) Public Company (TA-90) Public Company Public Company MAIN AREAS OF ACTIVITY MAIN AREAS OF ACTIVITY PRIVATE EQUITY FUND MAIN AR
Slide 7: 2025 Annual Overview at Elco Group
2025 ANNUAL OVERVIEW AT ELCO GROUP FOCUS, GROWTH, RETURN TO PROFITABILITY ELCO ELECTRA ELECTRA CP ELECTRA REAL SUPERGAS POWER DIC ESTATE Received confirmation of the A record year – revenues of The strategy of focusing on Implemented a focused Significant leverage reduction – company’s Maalot/S&P ra
Slide 8: Looking Ahead in 2026
LOOKING AHEAD IN 2026 COMPLIANCE WITH THE GROUP’S BUSINESS CORNERSTONES – FOCUS, IMPROVEMENT & FINANCIAL STRENGTH FOCUS VALUE ADDITION POST-WAR ISRAELI FINANCE ECONOMIC RECOVERY & Implementing the focus Implementing measures to RENEWAL – OPPORTUNITIES Adhering to the strategy strategy throughout imp
Slide 9: Elco 2014-2025
ELCO 2014-2025 FROM TRADITIONAL INDUSTRY TO AN INFRASTRUCTURE & RETAIL GIANT REVENUE BREAKDOWN CONSOLIDATED EQUITY ELCO’S SHARE PRICE (NIS MILLIONS) (NIS MILLIONS) 22,661 10,462 +230% 7,370 +823% 6,858 +220% 3,009 5,122 184.7 1,603 20.02 2,344 4,728 1,244 261 101 2014 2025 31.12.2014 31.12.2025 31.1
Slide 10: Elco's Development Over the Years
ELCO’S DEVELOPMENT OVER THE YEARS IMPLEMENTING A GROWTH & IMPROVEMENT STRATEGY WHILE REALIZING OPPORTUNITIES IN THE ACTIVITY SECTORS OF GROUP COMPANIES & IDENTIFYING OPPORTUNITIES IN COMPLEMENTARY FIELDS 2015-2016 2019 ELCO ELCO ELCO Realization of assets in Israel and overseas, and reduction of Acq
Slide 11: Elco's Development Over the Years
ELCO’S DEVELOPMENT OVER THE YEARS IMPLEMENTING A GROWTH & IMPROVEMENT STRATEGY WHILE REALIZING OPPORTUNITIES IN THE ACTIVITY SECTORS OF GROUP COMPANIES & IDENTIFYING OPPORTUNITIES IN COMPLEMENTARY FIELDS 2020 2021 2022 2024-2025 ELCO ELCO ELCO ELCO IPO of Supergas Power on the Acquisition of 29.8% o
Slide 12: Growth & Improvement While Maintaining Conservative Leverage & Strong Balance Sheet
GROWTH & IMPROVEMENT WHILE MAINTAINING STRICTLY CONSERVATIVE LEVERAGE & STRONG BALANCE SHEET DEVELOPMENT OF ELCO’S NAVSUPERVISION AND CONTROL OVER EXECUTION 8,701 6,790 6,150 5,931 6,044 4,861 31.12.2020 31.12.2021 31.12.2022 31.12.2023 31.12.2024 31.12.2025 DEVELOPMENT OF ELCO’S EQUITY-TO-SOLO ASSE
Slide 13: Maximizing Cashflow of Held Companies & Therefore of Elco
MAXIMIZING CASHFLOW OF HELD COMPANIES & THEREFORE OF ELCO DIVIDENDS DECLARED & RECEIVED BY ELCO* Special Dividend 245 110 116 94 110 58 2020 2021 2022 2023 2024 2025* DIVIDENDS DISTRIBUTED BY ELCO TO ITS SHAREHOLDERS* 70 70 115 57 60 50 2020 2021 2022 2023 2024 2025* *As of the publication date 13 |
Slide 14: Financial Debt
FINANCIAL DEBT MANAGING A CONSERVATIVE LEVERAGE POLICY & MAINTAINING LONG-TERM FINANCIAL STRENGTH COMMITTING TO LOW LEVERAGE FOR THE FORESEEABLE FUTURE LTV RATIO BASED ON MARKET DATA NET DEBT TO SOLO CAP RATIO 11% 11% 13% 22% 26% 32% 5% 8% 19% 18% 3% 12% 31.12.2020 31.12.2021 31.12.2022 31.12.2023 3
Slide 15: Elco – NAV Analysis
ELCO – NAV ANALYSIS Investment Breakdown Value (Elco’s Share, NIS Millions) Valuation Model Investment in Electra Ltd. 3,204 Market Cap as of Mar 25, 2026 Investment in Electra CP 818 Market Cap as of Mar 25, 2026 Investment in Electra Real Estate 1,749 Market Cap as of Mar 25, 2026 Investment in Su
Slide 16: For Elco Group Companies – Key Events & Future Outlook
2025 FOR ELCO GROUP COMPANIES – KEY EVENTS & FUTURE OUTLOOK
Slide 17: Electra
=LEcCTKA
Slide 18: Key Events During 2025
KEY EVENTS DURING 2025 2025 OPERATIONAL OVERVIEW BUSINESS STRATEGY Revenue grew to a record high of approx. NIS 14 Billion, mainly due to organic growth across all activity sectors. NETANYA GOVERNMENT COMPLEX Record profits in Operation & Maintenance and increased profitability in Overseas An agreem
Slide 19: Innovation in the Electra Group
INNOVATION IN THE ELECTRA GROUP THE AI REVOLUTION SERVICE, OPERATIONS & SAFETY TRANSFORMATIONS PROCESS OPTIMIZATION & SMART MANAGEMENT PERSONAL AI ASSISTANT FOR TECHNICIANS & AUTOMATIC TENDER ANALYSIS & PROJECT PLANNING AI is used to analyze and catalog tenders, derive SERVICE TEAMS BoM from enginee
Slide 20: Operational Income (NIS Millions)
OPERATIONAL INCOME (NIS MILLIONS) 13,953 11,615 12,326 881 879 826* 243 260 215* 2025 2025 2025 2023 2023 2023 2024 2024 2024 Revenue EBITDA Net Profit *Decreases in EBITDA and net profit are mainly attributable to decreased income from the infrastructure sector due to the impact of the war (increas
Slide 21: Broad Business Diversification
BROAD BUSINESS DIVERSIFICATION CONTINUOUS GROWTH IN EVOLVING MARKET CONDITIONS Other 20% 16% Offices OPERATION, RESULTS BREAKDOWN FOR THE YEAR ENDING DECEMBER 31, 2025 Financial Institutions 6% SERVICE & 15% Defense MAINTENANCE – 8% REVENUE Residential 14% 10% 11% Public Institutions Industrial Hi-T
Slide 22: Revenue & Backlog Development
REVENUE & BACKLOG DEVELOPMENT (NIS MILLIONS) A GROWTH COMPANY REVENUES ORDERS BACKLOG 14,000 39,772 12,000 37,333 9,544 10,000 9,622 29,590 CAGR 13% 9,000 28,308 8,725 8,470 30,228 8,000 5,402 27,711 5,498 7,000 Total backlog 24,826 20,865 6,000 19,838 2,365 Contracting Works 2,272 22,213 5,000 18,5
Slide 23: Electra Real Estate
Slide 24: Key Highlights
KEY HIGHLIGHTS $ MACROECONOMIC REDUCED FEDERAL CONSISTENT GROWTH WEAKENED DOLLAR SIGNIFICANT RECEIVED CASHFLOW FACTORS IN THE US RESERVE INTEREST IN MANAGED CAPITAL & ITS IMPACT GROWTH IN DURING REPORTING RESIDENTIAL REAL RATE ON COMPANY REALIZATION RATE PERIOD ESTATE MARKET The company has ACTIVITI
Slide 25: Broad Business Diversification: Multi-Family Market
BROAD BUSINESS DIVERSIFICATION CONTINUOUS GROWTH IN EVOLVING MARKET CONDITIONS MULTI-FAMILY MARKET – BASIC ATTRIBUTES DEBT & CAPITAL MARKET ENVIRONMENT % NEW UNIT CONSTRUCTION ANNUAL MULTI- FED INTEREST RATE & TRANSACTION MULTI-FAMILY DELIVERY STARTS FAMILY DEMAND1 FINANCING BODIES SCOPE CAPITALIZAT
Slide 26: Development of Managed Real Estate Assets
DEVELOPMENT OF MANAGED REAL ESTATE ASSETS 1 VALUE OF MANAGED REAL ESTATE ASSETS NOI OF MANAGED ASSETS )BILLIONS $ ,100%( )BILLIONS $ ,100%( 370 9.6 9.7 349 9 9.2 340 281 256 6.5 220 5 31.12.20 31.12.21 31.12.22 31.12.23 31.12.24 31.12.25 2020 2021 2022 2023 2024 2025 1. Real estate under the company
Slide 27: Electra CP
Slide 28: Consistent Growth in Profits & Peak Revenue
CONSISTENT GROWTH IN PROFITS & PEAK REVENUE (NIS MILLIONS) REVENUE NET PROFIT 7,477 7,256 116 6,257 34 -282 2023 2024 2025 2023 2024 2025 28 | Capital Market Presentation, March 2026
Slide 29: The Strategy Paid Off: Focus on Profit & Efficiency
DURING 2025, THE STRATEGY PAID OFF: FOCUSING ON PROFIT & EFFICIENCY LED TO GROWTH IN ALL KPIS +3.1% +34% +16.8% +178% REVENUE OPERATING PROFIT EBITDA NET PROFIT EXCLUDING IFRS 16 FROM ONGOING OPERATIONS 7,477 433 377 156 NIS Million NIS Million NIS Million NIS Million During 2025, the company distri
Slide 30: Future Opportunities for Expanding Growth
FUTURE OPPORTUNITIES FOR EXPANDING GROWTH LOGISTICS & EXPANDING HOME & INCREASING ONLINE EXPANDING RETAIL REZONING LAND IN EXPANDING INTO DISTRIBUTION INDUSTRIAL HVAC ACTIVITIES ACTIVITIES RISHON LEZION COMPUTING & IT EFFICIENCY SOLUTIONS PRODUCTS FOR The security situation The company is in talks A
Slide 31: Electra 2027 – Strategic Update
ELECTRA 2027 – STRATEGIC UPDATE ORGANIC GROWTH, ACQUISITIONS & REPRESENTING NEW BRANDS REVENUE & EBITDA • 2023-2027 • NIS MILLIONS 2023 2025 2027 Electrical 2,056 +35% 2,773 3,000-3,100 Revenue Retail 93 +41% 132 145-155 *EBITDA F&B 3,030 +8% 3,286 3,700-3,800 Revenue Retail )33( -- 142 230-250 *EBI
Slide 32: Electra Power
Slide 33: Key Events During 2025
KEY EVENTS DURING 2025 COMMERCIAL PAPER TRANSITION TO GROWTH COMPANY NAME CHANGE STABLE OUTLOOK ISSUANCE To Supergas Power (2019) Maalot rating of ilA/ilA-1, IN LPG In the amount of NIS 150 Ltd., October 2025 stable outlook Increased consumption Million, August 2025 volumes ROI DECLINE IN BRP HOLDIN
Slide 34: Company Results (NIS Millions)
COMPANY RESULTS (NIS MILLIONS) COMPANY REVENUE EBITDA 19% 1,022 98 856 88 21 6 16% 32 263 77 82 24 2 226 4 30 20 Cumulative Cumulative Q4 2024 Q4 2025 Cumulative Cumulative Q4 2024 Q4 2025 2024 2025 2024 2025 Excluding profit from decreased holding rate 34 | Capital Market Presentation, March 2026
Slide 35: All-Time Record Revenue
ALL-TIME RECORD REVENUE 1-12.2025 19% Growth in Sixfold Growth in Cashflow Cashflow from Company Revenue from Ongoing Activities Ongoing Activities Increase of Over NIS 70 Million from the Previous Year Revenue Breakdown by Segment Q4 Cumulative 2025 2025 427 20M 86M 418 856M 1,022M Revenue 1-12.202
Slide 36: Discount Investment Corporation
DISCOUNT INVESTMENT CORPORATION.
Slide 37: Key Events During 2025
KEY EVENTS DURING 2025 ACTIVITY FOCUSED ON THE HOLDINGS OF PROPERTY & BUILDING CORP. AFTER REALIZING THE BALANCE OF THE COMPANY’S PRIMARY ASSETS FINANCIAL STRENGTH – REDUCED LEVERAGE 10 BRYANT TOWER Significant reduction of financial debt – by the end of 2025, Lease Agreements net debt was less than
Slide 38: Summary – Why Elco?
SUMMARY – WHY ELCO? An active, central investment Prominent leading position in all Family attributes – prudent and company in the Israeli market, of its activity areas conservative while also being with ~75 years of experience proactive and taking initiative Proven track record over Period of focus
Slide 39: Thank You
Fx THANK YOU