Slide 1: Hilan Group Capital Market Presentation November 2020
Slide 2: General Notes on the Presentation
General Notes on the Presentation OQ uiani7n 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 influenced
Slide 3: COVID-19
COVID-19 GDP in 2020 is expected to shrink by approximately (6.5%) ° Yo Approximately 20% Unemployment outlook for EOY 2020 ie: Uncertainty as to the macro-economic environment following the spread of the second wave of COVID-19 LS Switch to hybrid and remote work * The quantitative data quoted in t
Slide 4: Impact of COVID-19 on Payroll and human resources services
‘CG ne) 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 © diani7n No significant impact on Group business during the reporting period due to the following c
Slide 5: About Hilan Group
About Hilan Group i) g 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 G re) Payroll and human resource
Slide 6: Data summary (NIS million)
Data summary (NIS million) © diani7n } 4 Index 90 Tel Aviv 125 Tel Aviv 1® Rating AA- Stable horizon S&P (Maalot) ® Market value 3,435 nis mittion As of November 15, 2020 Owner's capital 4.66.8 Nis mittion As of September 30, 2020 Revenues 1,192.0 Nis mittion 1-9/2020 a Operating income 124.5 Nis mi
Slide 7: Highlights for report period and afterward
Highlights for report period and afterward Effective coping with the COVID-19 crisis and its implications and made the necessary adjustments including switching to hybrid work mode 2 Growth of approximately 121.6% in cash flow from operating activities For Q3, 2020 In January 2020 the acquisition of
Slide 8: Revenues
Revenues &) i © cy 2019 © 2020 Gross profit 2019 2020 Operating income 2019 2020 Net profit © Se &3 t N 2019 2020 EBITDA 2019 2020 Revenues 2019 = 2020 Gross profit 2019 2020 Operating income 2019 2020 Net profit 2019 2020 EBITDA 2019 2020
Slide 9: Revenues
Revenues 2019 2020 Gross profit 2018 ©2019-2020 Operating income 2018 2019-2020 Net profit 2018 ©2019-2020 EBITDA 2018 ©2019-2020
Slide 10: Revenues, Gross profit, Operating income
Revenues Gross profit Operating income S 2018 ©2019-2020 2018 2019-2020 Net profit EBITDA 2018 2019 2020 2018 2019-2020 2018 2019-2020
Slide 11: Trendline: Operating and net income (NIS million)
Trendline: Operating and net income (NIS million) (+) HILANI7'N 38.8 35.3 31.2 267. 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 —— Net profit —— Operating income — Net profit —— Operating income
Slide 12: Holdings structure
Holdings structure © ditanizn — | Fs Hilan > So: detongnon wien Groy wmOQ : -2DAN-cL 8 Optibit 5 moo (7 OMEN 8 @ Se earomman |e OD tivwusa 3 SALTO 2 Payday 3 Master Reseller e, WA: as a * The percentages in this slide reflect Hilan’s percentage holding in the respective companies 12 alik@ | Israel 3
Slide 13: Sectors of activity
Sectors of activity @ Payroll and human resources services ‘cy IT Infrastructures Business process management services in BPO mode Professional service center in ASP mode I Solutions for local software on customer premises Payroll Management services T&A Management Human Resources management Pension
Slide 14: Distribution of operating income by sector of activity
Distribution of operating income by sector of activity Ath Business solutions Tes Th IT Infrastructures a) resources services Total operating income 38.8 NIS million 2h Marketing Software products Gt OQ uiani7n 93% Payrolland 7@ human @ resources services 32% Business solutions ne Total operating in
Slide 15: Main data from the profit and loss statement 2020 vs 2019 (Q3)
Main data from the profit and loss statement 2020 Vs 2019 (NIS million) © HILAN[7'N Revenues 389.6 387.5 0.5% Gross profit 86.9 80.4 8.1% Sales and G&A expenses 48.1 45.1 6.6% Operating income 38.8 35.3 10.0% Financing expenses, net 2.7 3.4 (20.4%) Earnings before tax 36.1 31.9 13.2% Taxes on revenu
Slide 16: Main data from the profit and loss statement 2020 vs 2019 (1-9)
Main data from the profit and loss statement 2020 Vs 2019 (NIS million) © HILAN[7'N Revenues 1,192.0 1,174.2 1.5% Gross profit 272.4 253.2 7.6% Sales and G&A expenses 147.9 132.7 11.5% Operating income 124.5 120.4 3.4% Financing expenses, net 5.0 7.0 (28.2%) Earnings before tax 119.4 112.9 5.8% Taxe
Slide 17: once nites
2018 2019 2020 2018 2019 2020 2018 2019 2020 once nites 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2020 2019 2018 “Stare a 2018 2019 2020 2018 2019 2020
Slide 18: Payroll and human resources services sector
@ Payroll and human resources services sector a 2° co 5 g 8 g & 8 2019 2020 2019 2020 Revenue Operating profit Operating profit (NIS millions) (NIS millions) Percentages wpercent) Consolidation of Payday for Continued new the first time since the A, beginning of 2020, which was A acquired in the USA
Slide 19: Payroll and human resources services
® Payroll and human resources services 2 Revenues of approximately 3 3 . Anis million For the 1-9/2020 timeframe Company with extensive experience in Payroll and Human Resources “@. Revenues of approximately ] 0 . Onis million For Q3, 2020 Ep Main east-coast offices OQ uiani7n cg Approximately 50 Em
Slide 20: Business solutions sector
n= Business solutions sector SQ oO ro nN 2019 2020 Revenue (NIS millions) Enacting Streamlining (@) processes and sales and G&A cost-cutting 6.1% a 10 < Red 2019 2020 2019 2020 Operating profit Operating profit (NIS millions) percentages (percent) Support and assistance for the health sector @| | cu
Slide 21: IT infrastructures sector
@ (|T infrastructures sector & o 2 & ry + Par: aos oo + | 2019 2020 2019 2020 2019 2020 Revenue Operating profit Operating profit (NIS millions) CNIS milfonsy percentages INS millions) (percent) Significant growth in the operating income percentage ail compared to the same quarter and period last ye
Slide 22: Software products marketing sector
f Software products marketing sector a 3 a bos So oso 2019 2020 2019 2020 Revenue Operating profit (NIS millions) (NIS millions) Decrease in income and operating income due to Shekel appreciation against the dollar quarter-over- quarter and compared with the same period last year 2 + S 3 at 2 2 = 20
Slide 23: Business diversification and growth
Business diversification and growth OQ uiani7n Diverse business areas High-quality human capital Low financial leveraging / Operating profit Mergers & acquisitions ‘growing continually Business and strategic Organic growth *\ focus on the core businesses Emergence into the international market 23
Slide 24: Thank you