Slide 1: Investors Presentation
12 11 1 10 2 Investors Presentation 9 3 Financial Reports 31.03.23 8 4 7 5 6
Slide 2: 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-1968, the realization of which is uncer
Slide 3: Leading
Leading Ranked as the leading company in the Israeli technology information market for 17 consecutive years, Matrix conducts the largest computing projects using the most advanced technology for a client base of Israel's top organizations. Activity sectors Leadership and growth 11,200 Professionals
Slide 4: Leading
Leading Ranked as the leading company in the Israeli technology information market for 17 consecutive years, Matrix conducts the largest computing projects using the most advanced technology for a client base of Israel's top organizations. Analyst Ranking Leading Partners 11,200 Professionals Leader
Slide 5: Q1 2023: A Record-Breaking quarter
Q1 2023: A Record-Breaking quarter Record-breaking quarterly results for revenues, gross profit, operating income, net income attributable to shareholders and EBITDA Revenues: 11.5% growth to ~1.29 billion NIS (11.8% organic growth) Gross Profit: 12.4% growth to ~189 million NIS with 14.6% Gross Mar
Slide 6: Q1 2023 Highlights
QI 2023 Highlights ▪ All-time records for Revenues, Gross Profit, Operating Income (which crossed the 100 M NIS barrier), Net Income attributable to Shareholders and EBITDA ▪ Double-digit growth in revenues (11.5%), gross profit (12.4%) and operating profit (10.2%) ▪ ~12% organic growth in Revenues
Slide 7: Overview of Activity
Overview of Activity O° matrix©-&
Slide 8: Activity in Israel
Activity in Israel Oey matrix Se
Slide 9: Revenue Segmentation by Business Sector
Revenue Segmentation by Business Sector 16% Government & Defense 25% Finance 11% Hi Tech Industry, Communications and Retail 13% 20% Healthcare and Transportation 15% Other
Slide 10: Activity in Israel - 1-3/23
Activity in Israel - 1-3/23 * )Millions of NIS( Revenues – 11.9% Operating Income – 18.6% 10.7% increase in Q1 4YR CAGR 8.5% increase in Q1 4YR CAGR 1,225 89 82 1,051 1,107 74 899 780 52 45 1-3/2019 1-3/2020 1-3/2021 1-3/2022 1-3/2023 1-3/2019 1-3/2020 1-3/2021 1-3/2022 1-3/2023 *Including results f
Slide 11: Distribution of revenue and profit by activity sectors
Distribution of revenue and profit by activity sectors Revenues Operating Income 8% 14% 4% IT Solutions in Israel 7% Software products 28% 52% Cloud solutions and 55% IT infrastructure 22% Training 5% 5% USA Activity
Slide 12: Activity sectors in Israel
Activity sectors in Israel (92% of Revenues, 86% of Operating Income) Growth in profit Profitability Share of operating % Income compared to the Organic/M&A margin income corresponding quarter 13.6% Organic: neutralizing IT solutions in Israel 55.2% 7.4% 52.1% Organic growth Infinity profits Cloud s
Slide 13: Projects 2023: Selected Projects
matrix PROJECTS 23 2023 Harel, the first insurance company in Israel to move its Selected Projects data operations to the cloud. Matrix has established a data infrastructure on Microsoft Azure for "Harel Insurance and Finance", with special focus on AI capabilities. This project positioned Harel as
Slide 14: Projects
matrix PROJECTS Management and supervision of the light Bank Hapoalim upgrades ICT with Cornerstone rail lines Hapoalim Bank has chosen the eLearning platform of matrix subsidiary company, Dana Engineering, Cornerstone, represented by Matrix, for its internal has been awarded two additional sections
Slide 15: Projects
matrix PROJECTS Automation at Zim Expanding the use of the Microsoft platform, Computerization of the pharmacies of the Israel which has been successfully implemented by Prison Service Zim in China, for processes in other The Tafnit system (Matrix's IP) will serve as the core departments and regions
Slide 16: Projects
matrix PROJECTS CRM, Salesforce, and Dynamics projects for a variety of A government ministry transfers its data to the cloud organizations, including: (Nimbus) Civil Aviation Authority – Developing a system for managing Leading a variety of data activities for a governmental engineering consultants
Slide 17: Projects: And a few more
matrix PROJECTS And a few more…. START Project Nefesh Achat: Ministry of Defense Managing the activities of the Technological A national project to improve the treatment of post- Innovation Unit at the Ministry of Education, trauma victims and their families, while upgrading the which promotes a tec
Slide 18: Activity in the USA
Activity in the USA Return to pre-COVID profit margins Hiring new employees...
Slide 19: Revenue growth – US activity
Revenue growth – US activity (8% of Revenues, 14% of Operating Income) Growth in profit Profitability Share of compared to the Sector % of Revenues Organic/M&A margin operating income corresponding quarter IT solutions 8.1% 13.6% 14.1% 42.9% Organic in the USA IT 13.6% Organic: neutralizing solution
Slide 20: Activity in the US – 1-3/2023
Activity in the US – 1-3/2023 (in millions of $) Operating Income: $4.2M; 31.2% growth Revenues: $30.5M; 2.7% growth compared to compared to the corresponding quarter the corresponding quarter (growth in NIS: 13.7%) (growth in NIS: 42.9%) +31.2% 5.3 30.5 4.1 4.2 29.7 29.2 3.2 2.6 27 26.6 1-3/2019 1-
Slide 21: US Activity
matrix USA US Activity Matrix's activity in USA is based on over 600 software professionals in North America, utilizing our development centers worldwide (Eastern Europe, India, Israel) and exploiting our software distribution partnerships with leading software vendors worldwide. Prominent market So
Slide 22: USA – Finance
matrix USA – FINANCE Matrix's activity in USA is based on over 600 software professionals in North America, utilizing our development centers worldwide (Eastern Europe, India, Israel) and exploiting our software distribution partnerships with leading software vendors worldwide. As a result of the gr
Slide 23: USA – Finance
matrix USA – FINANCE Matrix's activity in USA is based on over 600 software professionals in North America, leveraging the broad portfolio of technological capabilities of Matrix in Israel, on our development centers worldwide (Eastern Europe, India, Israel), and our software distribution partnershi
Slide 24: USA – Healthcare
matrix USA – HEALTHCARE Matrix's activity in USA is based on over 600 software professionals in North America, utilizing our development centers worldwide (Eastern Europe, India, Israel) and exploiting our software distribution partnerships with leading software vendors worldwide. Consolidation proj
Slide 25: USA – Spot On
matrix USA – SPOT ON Matrix's activity in USA is based on over 600 software professionals in North America, utilizing our development centers worldwide (Eastern Europe, India, Israel) and exploiting our software distribution partnerships with leading software vendors worldwide. In 2022, Brinks chose
Slide 26: Financial Reports
Oy O'>o' a matrix &e Financial Reports
Slide 27: Key data from the Q1/2023 Income Statement
Key data from the Q1/2023 Income Statement compared to the corresponding quarter (in Millions NIS) Q1 2023 Q1 2022 Difference Change in % Revenues 1,291.1 1,157.9 133.2 11.5% Gross Profit 188.6 167.8 20.8 12.4% Selling, marketing and general and administrative 87.1 75.7 11.4 15.1% expenses Operating
Slide 28: Summary of Q1, 2023
Summary of Q1, 2023 Key data (in millions of NIS) Revenues Gross Profit Operating Income 11.8% 12.2% Organic Organic 1,291 188.6 167.8 1,157 101.5 92.1 14.5% 14.6% 8% 7.9% Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 11.5% growth in revenues to 12.4% growth in gross profit to a 10.2% growth in op
Slide 29: Summary of Q1, 2023
Itemized net financing expenses (In millions of NIS) Summary of Q1, 2023 31.03.23 31.03.22 Key data (in millions of NIS) Interest, fees, and miscellaneous 12 5.9 Exchange rate differentials (1.7) (0.4) Financing of leasing and appraisal 6.6 1.5 of the minority interest Total financing costs (net) 16
Slide 30: Consistent improvement in performance over the years
Consistent improvement in performance over the years Steady growth in revenues, profit, and dividends (NIS millions) Revenues Gross Profit Operating Income 10.9% 11.2% 13.9% 4YR 4YR 4YR CAGR CAGR CAGR 1,291 188.6 101.5 92.1 1,108 1,157 153.6 167.8 81.9 974 133.2 851 123.3 68.0 60.1 13.7% 14.5% 7% 7.
Slide 31: Consistent improvement in performance over the years
Consistent improvement in performance over the years Steady growth in revenues, profit, and dividends (NIS millions) Net income attributed Adjusted EBITDA Net Income 14.3% to shareholders 13.1% 13.6% 4YR 4YR 4YR CAGR CAGR CAGR 115.9 106.5 59.1 60.7 95.6 68.0 65.3 48.4 78.4 55.1 70.9 39.5 43.1 36.4 3
Slide 32: Financial indicators
Financial indicators (NIS millions) 31.12.2022 31.03.2023 1,003 Cash & cash equivalents 839 648 473 Shareholders Unused credit facilities 927 855 Series B equity debentures Total liquid assets 1,766 1,503 Cash flow from operating activity Capital/Debt structure Cash flow in Q1, NIS 49M negative C/F,
Slide 33: Financial indicators
Financial indicators (NIS millions) The company maintains adequate coverage ratios, alongside consistent growth in its business volume and making significant investments, including acquisitions of companies (over 250 million NIS in the past 5 years) 1.34 31.12.2022 31.03.2023 0.98 1.28 0.71 0.94 Sha
Slide 34: Dividend of NIS 45.1 million (0.71 NIS per share)
Dividend of NIS 45.1 million (0.71 NIS per share)
Slide 35: “ LUSED To BE A STOCKBROKER BuT IM LOOKING FoR A GIG A LITTLE
“ LUSED To BE A STOCKBROKER BuT IM LOOKING FoR A GIG A LITTLE EASIER, ON THE SToMACH.. '”
Slide 36: Variety = Diversity = Stability
Variety = Diversity = Stability Technology services, software products marketing and distribution, IT training, hardware and infrastructure, cloud services, management consulting, civil engineering, service centers, outsourcing of printing services, smart offices and multimedia, exporting security a
Slide 37: Thank you!
Thank you!