Slide 1: Investors Meeting
Investors Meeting Financial reports for 31.12.23
Slide 2: Matrix remembers the murdered and the fallen
Matrix remembers the murdered and the fallen. We pray for the return of the hostages, for the safe return of our soldiers from the front, and for the recovery of those wounded in body and spirit
Slide 3: Clarifications
Clarifications • The presentation includes forecasts, estimates, and plans of the company in relation to its activities, and other information relating to future events and matters, which constitutes forward-looking information, as defined by the Securities Law 5728-1968, the realization of which is
Slide 4: Leaders
Leaders For 18 consecutive years, we have been leading the information technology market, and carrying out the most advanced computing projects in Israel, with the latest technologies for the leading customers in the market Growth & Leadership Sectors of Activity 11,200 Professional Characteristics
Slide 5: Leaders
Leaders For 18 consecutive years, we have been leading the information technology market, and carrying out the most advanced computing projects in Israel, with the latest technologies for the leading customers in the market Analysts Rankings Leading Partners 11,200 Professional Market leader in 51%
Slide 6: The effects of the war
The effects of the war The company's activity in Q4 2023 was characterized by an increase in activity, revenues, profit, and cash flow in most sectors of activity, which more than compensated for the negative impact of the war: • As of the date of the report and close to the date of publication, app
Slide 7: Q4/2023 – Growth in all activity indicators
Q4/2023 – Growth in all activity indicators - despite the effect of the war. Growth in revenues, gross and net operating profit, cash flow, and EBITDA Sales - 8.4% growth to approximately NIS 1.3 billion (7.3%+ organic growth) Operating profit - 7.4% growth to approximately NIS 101 million (2.1%+ or
Slide 8: 2023 – Growth in all activity indicators
2023 – Growth in all activity indicators, despite the effect of the war and the sale of Infinity. Growth in revenues, gross and net operating profit, cash flow, and EBITDA Sales - 12% growth to approximately NIS 5.2 billion (10.7%+ organic growth) Operating profit - 12.2% growth to approximately NIS
Slide 9: 2023 – Highlights
2023 – Highlights 12% growth in revenues and operating profit in spite of the effects of the war The advantage of wide diversification - a wide variety of products/services, sectoral, technological, geographical distribution: ▪ Consistent growth in the USA - our subsidiary that specializes in fraud
Slide 10: Financial Reports FY2023
Financial Reports FY2023
Slide 11: Key data from the Q4/2023 Profit and loss Statement
Key data from the Q4/2023 Profit and loss Statement compared to the corresponding quarter (in Millions NIS) 10-12 2023 10-12 2022 Difference Change in % Revenues 1,321 1,219 102 8.4% Gross Profit 203 183 20 11% Selling, marketing and general and administrative 102 89 13 14.8% expenses Operating inco
Slide 12: Key data from the FY2023 Profit and loss Statement
Key data from the FY2023 Profit and loss Statement compared to the previous year (in Millions NIS) FY2023 FY2022* Difference Change in % Revenues 5,232 4,673 559 12% Gross Profit 764 672 92 13.7% Selling, marketing and general and administrative 371 322 49 15.3% expenses Operating income 393 350 43
Slide 13: Summary 2023 – Year-over-year improvement in performance
Summary 2023 – Year-over-year improvement in performance Main results (in millions of NIS) Revenues Gross Profit Operating Income* 9.8% 11.5% 10.2% 4YR 4YR 4YR CAGR CAGR CAGR 393.4 5,232 764.2 329.4 350.5 4,360 4,672 630.4 672 289.1 563 254.7 3,596 3,854 517.9 14.4% 14.6% 14.5% 14.4% 14.6% 7.1% 7.5%
Slide 14: Summary 2023 – Net profit and Adjusted EBITDA
Financing expenses, net (in thousand of NIS) Summary 2023 – Year-over-year improvement in FY2023 FY 2022 Difference performance Interest, commissions and 39,530 28,977 10,553 Main results (in millions of NIS) others (net) Exchange rate differences 1,403 (2,749) 4,152 Accounting financing expenses 27
Slide 15: Summary Q4/2023 Main results
Summary Q4/2023 Main results (in millions of NIS) Operating Profit Gross Profit Income 7.3 % 7.3% 2.1% אורגני Organic Organic +8.4% +7.4% +11% 1,218.9 1,320.7 101 203.4 94.1 183.2 7.7% 7.6% 15% 15.4% Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 7.4% growth in operating 11% growth in gross profi
Slide 16: Summary Q4/2023 – EBITDA and net profit
Financing expenses, net (in thousand of NIS) Q4 2023 Q4 2022 Difference Interest, commissions and 8,413 9,906 (1,493) others (net) Summary Q4/2023 Exchange rate differences 5,851 4,812 1,039 9,136 Main results (in millions of NIS) Accounting financing expenses 4,644 (4,492) Total financing expenses
Slide 17: Areas of Activity – IT Solutions and Services
Areas of Activity IT Solutions and Services, consulting, and management Sample projects 2023-2024 in Israel • Core organizational systems (ERP, CRM, dedicated systems) • Development of operational solutions and systems – National Data Lake Messaging & Payments Digital Data & Cloud *C4ISR for securit
Slide 18: Areas of Activity – Cloud and computing infrastructure
Areas of Activity Leading partners Cloud and computing infrastructure • A variety of solutions and services in the field of cloud computing • Planning and setting up data centers • Physical infrastructures for recovery and maintaining business continuity • Representing world-leading hardware manufac
Slide 19: Areas of Activity – IT in the USA
Areas of Activity Information technology solutions and services, consulting, and management in the USA • Solutions and expert services in the field of GRC (Governance, Risk & Compliance) • Financial risk management • Data Analytics solutions and products • Fraud prevention • Prevention of money laun
Slide 20: Areas of Activity – Software products
Areas of Activity Sales, marketing and support of software products • Sales, distribution and marketing of software products from the world's leading software manufacturers • Specialization and market leadership around information security and cyber products • Providing professional product support
Slide 21: Areas of Activity – Training and implementation
Areas of Activity Training, implementation and talent training • Advanced courses, application courses, and professional training and retraining courses • Courses in the field of soft skills and executive training • Training services, BPO and implementation of computer systems directly to organizati
Slide 22: Activity in Israel
Activity in Israel Created in Midjourney AI platform
Slide 23: Activity in Israel - FY2023
Activity in Israel* - FY2023 (in Millions of NIS) Operating profit – 14.4% Revenues – 10.4% 9.2% growth in the period 4YR CAGR 12.4% growth in the period 4YR CAGR +9.2% +12.4% 334 4,968 291 306 4,418 4,133 239 3,635 3,343 195 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 * Includes the results o
Slide 24: Sectors of activity in Israel – 2023
Sectors of activity in Israel – 2023 (in thousands of NIS) )₪ (באלפי Operating Profit Income % 2022 2023 % 2022 2023 Information technology solutions and services, consulting and management in 10.2% 180,359 198,785 17.4% 2,508,477 2,946,194 Israel • Organic growth in activity volumes, mainly the d
Slide 25: Sectors of activity in Israel – 2023
Sectors of activity in Israel – 2023 (In thousands of NIS) (₪ )באלפי Operating Profit Income % 2022 2023 % 2022 2023 Information technology solutions & services, 10.2% 180,359 198,785 17.4% 2,508,477 2,946,194 consulting and management in Israel Cloud and computing solutions 14.8% 76,607 87,957 6.
Slide 26: Sectors of activity in Israel – 2023
Sectors of activity in Israel – 2023 (In thousands of NIS) )₪ (באלפי Operating Profit Income % 2022 2023 % 2022 2023 Information technology solutions & services, 10.2% 180,359 198,785 17.4% 2,508,477 2,946,194 consulting and management in Israel Cloud and computing solutions 14.8% 76,607 87,957 6.
Slide 27: Sectors of activity in Israel – 2023
Sectors of activity in Israel – 2023 (In thousands of NIS) )₪ (באלפי Operating Profit Income % 2022 2023 % 2022 2023 Information technology solutions & services, 10.2% 180,359 198,785 17.4% 2,508,477 2,946,194 consulting and management in Israel Cloud and computing solutions 14.8% 76,607 87,957 6.
Slide 28: Activity in the USA
Activity in the USA Created in Midjourney AI platform
Slide 29: Sectors of activity – 2023
Sectors of activity – 2023 (In thousands of NIS) (₪ )באלפי Operating Profit Income % 2022 2023 % 2022 2023 Information technology solutions & services, consulting and management in Israel 10.2% 180,359 198,785 17.4% 2,508,477 2,946,194 Information technology solutions and services, consulting and
Slide 30: Activity in the USA – Q4 2023
Activity in the USA – Q42023 (in Millions of NIS) Record numbers in operating profit in the USA. 35% growth to NIS 23.2 million, Record revenue in the US and a 17.9% increase in profitability 6% growth in this period to NIS 130m +6% +35% 23.2 130 123 17.2 91 90 86 15.0 11.9 10.7 2019 2020 2021 2022
Slide 31: Activity in the USA – FY2023
Activity in the USA – FY2023 (in Millions of NIS) Record numbers in operating profit in the Record revenue in the US USA. 26.5% growth to NIS 76.2 million, and 12% growth in this period to NIS 487 a 15.6% increase in profitability million +26.5% +12% 76.2 487 65.8 435 61.5 60.2 387 358 357 41.1 2019
Slide 32: Revenue and profit distribution by activity sectors FY2023
Revenue and profit distribution by activity sectors FY2023 Income Contribution to profit 3% 6% 9% 3% Software services 9% Infrastructure & Cloud 19% 48% USA activity 54% 28% Software products Implementation and 21% training
Slide 33: Financial Indicators
o%e matrix one Financial Indicators
Slide 34: Backlog
Backlog (in thousands of NIS) Backlog Backlog Comments Total backlog to 31 Dec 2023 6,884 Total backlog to 31 Dec 31 Dec 2022 5,776 +19% 31.12.23 2022 Total increase 4,552 Total 2023 4,363 (1) in order Total 2024 backlog 2,332 From 2024 Onwards 1,413 (2) 2025 onward 1. Change in backlog for the comi
Slide 35: Financial Indicators – Cash flow and liquidity
Financial Indicators (in Millions of NIS) Cash flow from current operations 31.12.2023 31.12.2022 19.15% Cash and cash 640 839 equivalents 4YR CAGR Unused credit facilities 1,448+ 927 Total liquid assets 2,089 1,766 535.2 +28.1% 496.2 * Of this, NIS 500 million in credit 387.4 Cash flow from current
Slide 36: Financial Indicators – Equity and debt
Financial Indicators (in Millions of NIS) 444 1,107 Equity 31.12.2023 31.12.2022 Debenture- Series B Equity 1,107 965 % of the total Equity / Debt 27.1% 24.1% balance 288 Structure Gross financial Loans from financial 956.4 1,221.2 debt institutions Net financial debt 316.2 381.8 Current ratio 1.2 1
Slide 37: A decrease in net interest expenses
A decrease in Net interest expenses, despite the high market interest rate 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 31.3.22 30.6.22 30.9.22 31.12.22 31.3.23 30.6.23 30.9.23 31.12.23 5% 4% 3% Bank of Israel 2% interest rate 1% 0% 23.9 Breakdown of 18.9 financing 16.9 17.0 expenses 13.9 15.4 (in millions of
Slide 38: Financial Indicators – Coverage ratios
Financial Indicators (in Millions of NIS) The company maintains adequate coverage ratios, along with an increase in the scope of activity and significant investments, including in company acquisitions, and minority interest subsidiaries (over 300 million NIS in the last 5 years) in subsidiaries 1.38
Slide 39: Dividend Distribution
Dividend Distribution Dividend per share Distribution date Amount in Millions (in cents) 800 million NIS in dividends have 16.04.2023 59 37.5 been distributed to 05.06.2023 71 45.1 shareholders in the 03.09.2023 69 43.8 last 5 years Total to - 31.12.2023 199 126.4 Total to – 31.12.2022* 452 284.3 *I
Slide 40: Dividend in respect of H2/23 profits
Dividend in respect of H2/23 profits amounting to 80.7 million NIS (NIS 1.27 per share) Puts the total dividends for the year 2023 at 169.6 million NIS (2.67 NIS per share)
Slide 41: Matrix growth engines for the coming years
Matrix growth engines for the coming years Please do not copy • (D2C3)
Slide 42: Growth engines for coming years
Growth engines for coming years
Slide 43: Security, Cyber, AI
Growth engines for coming years Security, Cyber, AI
Slide 44: Growth engines – Cyber defense and C4ISR
Growth engines for coming years • Cyber Defense • C4ISR Solutions • National security • Business continuity • Cloud C4ISR - Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance
Slide 45: Growth engines – Cloud
Growth engines for coming years Cloud
Slide 46: Nimbus Cloud
Growth engines for coming years Nimbus Cloud The path of the government is long, but paved with continuous opportunities National Digital framework produces a Procurement manager created easy migration plan to the Cloud with paths to work in the Cloud different offices The war created the opportunit
Slide 47: Growth engines – Nimbus Cloud
Growth engines for coming years Nimbus Cloud
Slide 48: Matrix USA: Preventing money laundering and financial crime
Growth engines for coming years Matrix USA: Preventing money laundering and financial crime
Slide 49: Non-bank credit and deposits
Growth engines for coming years Non-bank credit and deposits BankWAareco,re bankinA gcor syestba emnkin andg tshe ystem onlyanIsrdae theli off onl-ba y Isr nkaecrliedi offt-so balu nktion credi wit t so h lution with Turn ofdo evzens ents:of regula dozens tionofs an regula d a ctomple ions anted rae
Slide 50: National Infrastructure
Growth engines for coming years National Infrastructure Metro project – M1 Line (blue) (85Km, the longest line, 13 years, two billion NIS remuneration, 36% Matrix)
Slide 51: Main growth engines - Summary
Main growth engines - Summary • Financial sector investments - banks, credit companies, and insurance companies, in the areas of digital, data, cyber cloud, and banking core. • Acceleration of contracts for the execution of large projects, procurement of software products and services for the defens
Slide 52: Main growth engines - Summary
Main growth engines - Summary • The growing infrastructure sector realizes our positioning as the leading cloud products and services company in Israel - Matrix and CloudZone brands for AWS, Google Cloud, and Azure infrastructures, as well as our partnership with leading manufacturers - NVIDIA, HPC,
Slide 53: Thank you!
o C0 © matrix oe Thank you!