Slide 1: Slide 1
Slide 2: General Notes on the Presentation
General Notes on the Presentation © HILANI7N The presentation includes the Company's forecasts, estimates and plans regarding its activities, which constitute forward- looking information as defined in the Securities Law, 5728-1968, the realization of which are not certain and which may be influence
Slide 3: COVID-19
COVID-19 Mw ie: GDP in 2020 is expected to Uncertainty as to the macro-economic shrink by approximately environment following (6.0%) the spread of the second wave of COVID-19 i GS Approximately Switch to hybrid 9.0% and remote Unemployment work outlook for EOY 2020 O uiani7n (z] 2020 Government defi
Slide 4: COVID-19
COVID-19 (3 we) Payroll and human resources services sector Reduced exposure to the proportion of unemployed in the market [e) Ce Furlough The vast majority of the Group employees returned to full employment during Q2, 2020 © Diversified business In the overall group's core business V7—~_«- oo ama I
Slide 5: About Hilan Group
About Hilan Group A leading technology services group Publicly traded company since 2000 Over 5,000 customers Approximately 30% revenues from the government sector Approximately 4,000 employees in the Group 15 companies in the Group Consistent financial strength ) Payroll and human resources service
Slide 6: Data summary (NIS million)
Data summary (NIS million) © dianizn Index bf 125 Tel Aviv 90 Tel Aviv Rating 1® AA- Stable horizon S&P (Maalot) Market (@) value [2 3,741 Nis mitlion As of August 16, 2020 Owner's _& capital 464.7 nis milion As of June 30, 2020 Revenues 802.4 Nis million H1 2020 Operating income et 85.7 Nis million
Slide 7: Highlights for report period and afterward
Highlights for report period and afterward © oe S © Effective coping with the COVID-19 — In January 2020 the acquisition of The Company announced a crisis and its implications and a company in the payroll and dividend totaling NIS 22.5 made the necessary adjustments human resources services sector m
Slide 8: Revenues
2019 Revenues 2020 Gross profit 2019 2020 Operating income 2019 2020 Net profit 2019 2020 EBITDA 4m wa Re} oO rr 2019 2020 2019 Revenues 2020 Gross profit 2019 2020 Operating income 2019 2020 Net profit 2019 2020 EBITDA 2019 2020
Slide 9: Revenues
2018 Revenues 2019 Operating income 2018 2019-2020 Gross profit 2019 © 2020 Net profit 2018 2019» 2020 EBITDA 2018 ©2019 ~=—-2020
Slide 10: Revenues
Revenues 2019 2020 Operating income 2018 2019 ~=—- 2020 Gross profit 2018 2019-2020 Net profit 2018 ©2019-2020 EBITDA +2018 = 2019-2020
Slide 11: 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
Slide 12: Holdings structure
Holdings structure —= Fs =) o : doddingrow S DDAN-EL s PRO x Sofware Datibution = & SALTO g lik @ | el. E a * The percentages in this slide reflect Hilan’s percentage holding in the respective companies © dianizn Hilan Israel (+) au = ewent O 8 Optibit 5 moo (7 OMEN 8 OD tivwusa 8 12
Slide 13: Sectors of activity
Sectors of activity @ Payroll and human resources services (Gl) I IT Infrastruc ! -tures Business process management services in BPO mode Professional service center in ASP mode Solutions for local software on customer premises Payroll Management services T&A Management Human Resources management Pe
Slide 14: Distribution of operating income by sector of activity
Distribution of operating income by sector of activity © dani DAY 55% 31% Payroll and hina DT Payroll and human sus s esources services) 5 s resources services (§ usiness usiness solutions solutions 2 Total operating income Total operating income 41.2 85.7 NIS million NIS million 10% oY IT aD 0 Infr
Slide 15: Main data from the profit and loss statement (NIS millions)
Main data from the profit and loss statement (NIS millions) © ow Revenues 389.7 387.6 0.5% Gross profit 86.4 83.2 3.8% Gross profit margin 22.2% 21.5% Sales and G&A expenses 45.2 43.0 5.2% Operating income 41.2 40.3 2.4% Operating income percentage 10.6% 10.4% Financing expenses, net 0.9 2.0 (54.8%)
Slide 16: Main data from the profit and loss statement (NIS millions)
© dianizn Main data from the profit and loss statement (NIS millions) Revenues 802.4 786.7 2.0% Gross profit 185.6 172.8 Tbh Gross profit margin 23.1% 22.0% Sales and G&A expenses 99.9 87.7 14.0% Operating income 85.7 85.1 0.6% Operating income percentage 10.7% 10.8% Financing expenses, net 26 3.7 (
Slide 17: 2018 2019 2020 2018 2019 2020 2018 2019 2020 SJ o & 2018 9
2018 2019 2020 2018 2019 2020 2018 2019 2020 SJ o & 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
Slide 18: Payroll and human resources services sector
HILANI7'N @ Payroll and human resources services sector © o o Ga as So ¢ o N N N ; [| ; U 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 Revenue Operating profit Operating profit Revenue Operating profit | Operating profit (NIS millions) (NIS millions) percentages (NIS millions) (NIS mi
Slide 19: Payroll subsidiary in the USA
_(B) LZ Revenues of approximately 23.4nism For first half of 2020 Revenues of approximately 10.3nis M For Q2, 2020 CA Approximately 50 Employees Company with extensive experience in Payroll and Human Resources Main east-coast offices rs Over 1,500 Customers
Slide 20: Business solutions sector
n& Business solutions sector © dianizn n 3 ~ ~~ n + 3 2 a *. @ 4x g 8 a & Ss : = i “ “ = 2019 2020 2019 2020 = 20192020 2019 2020 2019 2020 2019 2020 Revenue Operating profit | Operating profit Revenue Operating profit Operating profit (NIS millions) (NIS millions) percentages (NIS millions) (NIS mi
Slide 21: IT infrastructures sector
IT infrastructures sector oR 3 o 2 6 < oe A 9 foe 2019 2020 2019 2020 2019 2020 2019 2020 Revenue Operating profit Operating profit Revenue (NIS millions) NIS millions) percentages (NIS millions) (percent) Continued trend toward changing revenue mix and transition to cloud-based managed services Sig
Slide 22: Software products marketing
——_—_—_——_. © dianizn (Software products marketing + = ee S ae a 2 2 36 3 3 3 x 2 3 a Sy —= = Lt Len 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 Revenue Operating profit Operating profit Revenue Operating profit Operating profit (NIS millions) (NIS millions) percentages (NIS millions
Slide 23: Business diversification and growth
Business diversification and growth © oT Diverse business areas High-quality human capital gm f F nancial streng¢A Low financial leveraging Mergers & acquisitions J ‘Operating profit growing ~ continually ‘\. Business and strategic focus on the core businesses Organic growth 23
Slide 24: Thank you
Thank you