Slide 1: Investor Meeting – Financial Statements as at 31.3.25
Investor Meeting Financial Statements as at 31.3.25 Q1/2025 The information contained in this Investors presentation constitutes a convenience translation. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law and represents the binding version and the o
Slide 2: Disclaimer
Disclaimer • The presentation contains forecasts, estimates and plans of the Company regarding its operations and other information about future events and matters, which constitute forward-looking information, as defined in the Securities Law, 1968, and materialization thereof is uncertain and may
Slide 3: 2025 Opens with Record Q1 Results
2025 Opens with Record Q1 Results
Slide 4: Q1 2025 Record growth in revenues, profit and EBITDA
Q1 2025 Record growth in revenues, gross profit, operating income, EBITDA, net income, net income attributable to shareholders Revenues grew 6.4% to a record NIS 1.55 billion. 11.3% growth adjusted for revenues accounted for on a net basis (*) Gross profit grew 9.6% to a record NIS 227 million Opera
Slide 5: The War's Impact
The War’s Impact • In the Company’s assessment, the war has had no material impact on its financial results. Despite the ongoing conflict, we have maintained strong organic growth in revenues, profit, and cash flow. • As of 31.03.25, 120 of the Company's employees have been called up to reserve duty
Slide 6: Financial Statements 31.03.25
Financial Statements 31.03.25
Slide 7: Key data from the statement of profit and loss – Q1/2025
Key data from the statement of profit and loss – Q1/2025, compared to the corresponding quarter Key results (NIS thousands) 1-3/2025 1-3/2024 % Revenues 1,546,200 1,453,713 6.6%
Slide 8: Key financial results adjusted for net basis revenues
Key data from the statement of profit and loss – Q1/2025, compared to the corresponding quarter Key financial results adjusted for increased revenues accounted for on a net basis (NIS thousands) 1-3/2025 1-3/2024 % Revenues 1,546,200 1,453,713 6.4% Adjustments for the increase in revenues accounted
Slide 9: Key data from the statement of profit and loss – Q1 2025
Key data from the statement of profit and loss – Q1 2025, compared to the corresponding quarter Key results (NIS millions) 1-3/2025 1-3/2024 % Revenues* 1,546 1,454 6.4% Gross profit 227 207 9.6% SG&A 101 96 4.8% Operating income 126 111 13.8% Financial expenses, net 19 17 16.8% Taxes on income 26 2
Slide 10: Q1 2025 Summary - Key results (NIS millions)
Q1 2025 Summary - Key results (NIS millions) Revenues Gross profit Operating income + 6.4% 1,546.2 227.1 1,453.7 + 9.6% + 13.8% 207.1 126 110.7 14.2% 14.7% 7.6% 8.1% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 6.4% growth in revenues 9.6% growth in gross profit 13.8% growth in operating to a rec
Slide 11: Q1 2025 Summary – Key results (NIS millions)
Financial expenses, net (NIS millions) Q1 2025 Summary – Interest, commissions, and other Q1 2025 Q1 2024 Key results (NIS millions) (net) 6.4 7.6 FX differences 0.3 2.5 Accounting financial expenses 12.6 6.4 Total financial expenses (net) 19.3 16.5 Net income to Net income EBITDA* shareholders 12.8
Slide 12: Israeli Market
Israeli Market
Slide 13: Revenue breakdown by customer sector
Revenue breakdown by customer sector* 8% Government 18% 11% Financial Hi-Tech 13% Industry, Communications & Retail 18% Healthcare & Transportation Defense 16% 16% Other (*) According to FY 2024 revenues
Slide 14: Israeli Market Q1 2025
Israeli Market* Q1 2025 (NIS millions) Revenues: 7.5% growth. 13.1% growth adjusted for revenues Operating income: 16.4% growth accounted for on a net basis 10.3% 11.7% 4YR 4YR CAGR CAGR +7.5% 1,479 1,375 16.4% 1,225 114.4 1,129 1,051 98.3 89.3 82 73.5 7% 7.3% 7.3% 7.2% 7 7.7% 1-3.2021 1-3.2022 1-3.
Slide 15: Operating Segments in Israel - Q1/2025
Operating Segments in Israel - Q1/2025 (NIS thousands) Revenues Operating income Q1/2025 Q1/2024 % Q1/2025 Q1/2024 % Information Technology Solutions and Services, Consulting, and 929,531 839,729 10.7% 70,139 63,327 10.8% Management in Israel Profit margin (%) 7.5% 7.5% • Growth across all business
Slide 16: Operating Segments in Israel - Q1/2025
Operating Segments in Israel - Q1/2025 (NIS thousands) Revenues Operating income Q1/2025 Q1/2024 % Q1/2025 Q1/2024 % Information Technology Solutions and Services, Consulting, and 929,531 839,729 10.7% 70,139 63,327 10.8% Management in Israel Profit margin (%) 7.5% 7.5% Cloud and Computing Infrastru
Slide 17: Cloud and Computing Infrastructures – Adjusted Results
Cloud and Computing Infrastructures – Results adjusted for the increased in revenues accounted for on a net basis (NIS thousands) 1-3/2025 1-3/2024 % Revenues 460,548 437,782 5.2% Adjustments for the increase in revenues accounted for on a net basis 20,715 - Adjusted revenues 481,263 437,782 9.9% Op
Slide 18: Operating segments – Q1/2025
Operating segments – Q1/2025 (NIS thousands) Revenues Operating income Q1/2025 Q1/2024 % Q1/2025 Q1/2024 % Information Technology Solutions and Services, Consulting, and 929,531 839,729 10.7% 70,139 63,327 10.8% Management in Israel Profit margin (%) 7.5% 7.5% Cloud and Computing 460,548 437,782 5.2
Slide 19: US Market
US Market
Slide 20: Operating Segments – Q1/2025
Operating Segments – Q1/2025 (NIS thousands) Revenues Operating income Q1/2025 Q1/2024 % Q1/2025 Q1/2024 % Information Technology Solutions and Services, Consulting, and 929,531 839,729 10.7% 70,139 63,327 10.8% Management in Israel Profit margin (%) 7.5% 7.5% Cloud and Computing 460,548 437,782 5.2
Slide 21: IT Solutions and Services, Consulting, and Management in the US
IT Solutions and Services, Consulting, and Management in the US Operating income trend in the past year (USD millions) 8 6.3 6 5.5 5.1 4.6 4.6 4.4 4.5 4.6 4.2 4.2 4 2 0.4 (1.8) (0.4) (0.5) (1.1) 0 -2 • Q1 2025 shows the first signs of stabilizing operating income on a quarter-by-quarter basis • The
Slide 22: Breakdown of revenues and profit by operating segments
Breakdown of revenues and profit by operating segments in 2025 Revenues Contribution to profits IT Solutions in 5.6% 6.5% Israel 6.9% 11.7% Cloud and Computing Infrastructures 29% IT Solutions in 54.1% 58.5% the US 27.7% Software Products
Slide 23: Financial Indexes
Financial Indexes
Slide 24: Financial indexes (NIS millions)
Financial indexes (NIS millions) 31.03.2025 31.12.2024 Cash flows from operating activities - LTM Cash and cash 600 668 equivalents +16.9% 635.7 Unused credit 1,226 1,229 facilities* 543.8 Total liquid assets 1,826 1,897 * Of which NIS 300 million are committed credit facilities 332.2 339.5 313.7 Aa
Slide 25: Financial indexes (NIS millions)
Financial indexes (NIS millions) 31.03.2025 31.12.2024 Equity 1,169 1,144 339 1,169 Debentures % of total balance sheet 25.3% 25.5% Series B Equity Gross financial debt 848.6 785.1 197 Net debt – short-term and Loans from Capital long-term credit, net of 248.6 116.6 financial cash and cash equivalen
Slide 26: Financial expenses, net (NIS thousands)
Financial expenses, net (NIS thousands) Financial expenses, net (NIS thousands) Q1 2025 Q1 2024 Change Interest, commissions, and 6,443 7,640 (1,197) other (net) FX differences 315 2,522 (2,207) Accounting finance expenses 12,620 6,424 6,196 Total financial expenses 19,378 16,586 2,792 (net) The inc
Slide 27: Dividend of NIS 56.6 million
Dividend of NIS 56.6 million (89 ag. per share)
Slide 28: Q1/2025 compared to the corresponding period
Q1/2025 compared to the corresponding period: Record performance in revenues, gross profit, operating income, EBITDA, net income, and net income attributable to shareholders Despite the ongoing war Strong organic growth and contribution from acquisitions, in revenues and profits The Company continue
Slide 29: IBM Mainframe, Quantum Computing, AI…
IBM Mainframe, Quantum Computing, AI…
Slide 30: Merger Transaction: magic + matrix
MERGER TRANSACTION magic + matrix 30
Slide 31: The Merger Transaction
The Merger Transaction o On March 10, 2025, a Memorandum of Understanding (MOU) was signed between Matrix IT Ltd. (“Matrix”) and Magic Software Enterprises Ltd. (“Magic”) for the purpose of negotiating a binding merger agreement, under which Matrix will acquire the entire issued and paid-up share ca
Slide 32: The Combined Company Would Be One Of The Largest Listed IT Services Firms Globally
The Combined Company Would Be One Of The Largest Listed IT Services Firms Globally U.S. Listed IT Services European Listed IT Services Rank Company Market Cap ($M) Rank Company Market Cap ($M) 1 $213,814 1 $28,936 2 81,672 2 4,958 3 41,330 3 3,656 4 34,342 4 2,132 5 23,319 6 11,222 5 2,042 7 8,249 6
Slide 33: Statement of profit and loss
matr, Statement of profit and loss (Based on 2024 annual results, in NIS thousands) C 00 0 matr,x O:Qo 1-3/2025 Revenues* Matrix Magic matrix+ magic * Gross profit 1,546 227 Sales, marketing, and general expenses 101 Operating income 126 Revenues 5,579,538 2,043,771 7,623,309 Financial expenses, net
Slide 34: The Opportunity
The Opportunity o A leap for Matrix in geographic expansion and diversity, in particular strengthening exposure to the U.S. as a strategic target market. o The merged company would rank #4 and #10 by market capitalization among European-listed IT Services peers and U.S.-listed IT Services peers, res
Slide 35: The Opportunity (Cont'd)
The Opportunity (Cont’d) o Significant improvement in profit margins – Magic’s gross margins are over 28% and operating margins over 11% (effective tax rate is also about 4% lower than Matrix’s). o Magic has a strong balance sheet with high net cash balances. o All stock deal structure avoids meanin
Slide 36: Target date to conclude the transaction: Q4 2025
Target date to conclude the transaction: Q4 2025 36
Slide 37: Matrix will market IBM mainframe computers in Israel
Matrix will market IBM mainframe computers in Israel (1.5.2025)
Slide 38: Matrix will market IBM mainframe computers in Israel
Matrix will market IBM mainframe computers in Israel IBM mainframe computers are the leaders in the enterprise computing market. They provide high performance, high reliability, and the ability to process huge amounts of data simultaneously. IBM mainframe computers process large data volumes and tri
Slide 39: IBM Mainframe & Quantum Computing
IBM Mainframe & Quantum Computing The next revolution in the world of computing – 5 years from now (some say, even sooner...) IBM is investing in quantum computing as the future of computing. While mainframe computers are a great solution for mass data processing, quantum computing offers new possib
Slide 40: Matrix AI
G Oe% matrix &e
Slide 41: Matrix AI Center of Excellence handles all layers of the AI world
The Matrix AI Center of Excellence (CoE) handles all layers of the “Maslow hierarchy” of the AI world Engagement Business Applications AI Models Data Infrastructure
Slide 42: At Matrix, we provide for the entire AI supply chain
At Matrix, we provide for the entire AI supply chain Responsible AI Reskilling & Contact Autonomous Engagement Marketing Center Conversational Agents Personalization … Upskilling Compliance Upskilling Business non-technical Interpretability & Healthcare Finance Hi-Tech Retail Manufacturing … employe
Slide 43: At the base are AI infrastructures
At the base are AI infrastructures Responsible AI Reskilling & Contact Engagement Marketing Center Conversational Autonomous Agents Personalization … Upskilling Compliance Our AI infrastructure foundation is powered Upskilling by Cloudzone, Matrix's dedicated cloud We partner with NVIDIA non-technic
Slide 44: Cloud
Cloud Unique certifications What sets Matrix apart aws pa rtnEf • Winning Nimbus in all categories • High security clearance -.._..;, ner.vork • Marketplace • International operations Premier- • Cloud pioneers in Israel since 2013 • Private and public cloud Consu lting Par ner • Leaders in cloud dep
Slide 45: Sample Hi-Tech Customers
Sample Hi-Tech Customers Tech companies we partnered with early on and supported through their growth
Slide 46: Data capabilities are a necessity for AI applications
Data capabilities are a necessity for AI applications Responsible AI Reskilling & Contact Autonomous Engagement Marketing Center Conversational Agents Personalization … Upskilling Compliance Upskilling Business non-technical Interpretability & High-quality, well-organized Healthcare dataFinance driv
Slide 47: Data & Analytics
Data & Analytics Our expertise • Specialization in research platforms 10 consecutive years (based on STKI rating) leading the data market in Israel • The Matrix ecosystem • Cyber + Digital + Data + Cloud • International operations • High security clearance Facts in • Training for the data and analyt
Slide 48: Data & Analytics
Data & Analytics Combination of nationwide projects, projects in the business sector, and projects in the hi-tech industry, such as: A digital platform for day-to-day personal health management Establishment of a nationwide 'data lake' A data project for day-to-day management of personal health, A f
Slide 49: AI capabilities: Developing models, Business Applications, and Engaging with users
AI capabilities: Developing models, Business Applications, and Engaging with users Responsible AI Reskilling & Contact Autonomous Engagement Marketing Center Conversational Agents Personalization … Upskilling Compliance Upskilling Business non-technical Interpretability & Healthcare Finance Hi-Tech
Slide 50: About the AI Center of Excellence (CoE)
About the AI Center of Excellence (CoE) Established in 2015 Deep learning solutions across all disciplines (audio, text, graphics, and more) A comprehensive team of researchers, developers, designers, and data specialists Characterization, research, development, deployment and maintenance – initiall
Slide 51: Sample AI customers
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Slide 52: Combination of projects for the defense sector, business sector and high-tech
AI Combination of projects for the defense sector, the business sector, and the high-tech Industry, such as: Protecting SaaS applications using NLP and AI Support for protecting SaaS applications using an automated Open-source Arabic/Hebrew translation model GenAI-based system that analyzes HTML fil
Slide 53: Responsible AI Capabilities
Responsible AI Capabilities Responsible AI Reskilling & Marketi Contact Conversatio Autonomous Engagement Expertise in emerging ng regulatory Center implications, nal including Agents the Personalization … Upskilling Compliance European AI ACT Upskilling Business non-technical Interpretability & Hea
Slide 54: matrix
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Slide 55: Press coverage on national AI computing tender (Hebrew)
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Slide 56: Press coverage on national supercomputer bids (Hebrew)
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Slide 57: Call for establishment of a laboratory for training large models
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Slide 58: An Israeli alternative to GPU as a service
Call for the establishment and accessibility of a laboratory for training large models for accelerating artificial intelligence (AI) studies An Israeli alternative to GPU as a service: more power, less costs This initiative directly addresses the growing needs of Israeli technology companies, resear
Slide 59: The potentiality is an outcome of the surprising reversal of investments in AI
Call for the establishment and accessibility of a laboratory for training large models for accelerating artificial intelligence (AI) studies The potentiality is an outcome of the surprising reversal of investments in AI Software Hardware and 20% Services 20% Software and Hardware 80% Services 80% Br
Slide 60: Not just the hardware: value-added services
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Slide 61: Questions...
Thank you for listening! Questions... 61