Slide 1: Investor Presentation
INVESTOR PRESENTATION February 2021 1
Slide 2: Disclaimer
DISCLAIMER Information provided during this presentation and responses to various questions may contain statements relating to current expectations, estimates, forecasts and projections about future events that are "forward- looking statements" as defined in the Private Securities Litigation Reform
Slide 3: Company Overview
COMPANY OVERVIEW Quartz Countertop • Leading designer and producer of high-end Inventor engineered surfaces used in residential and commercial buildings Powerful Brand • Founded in 1987 and HQ in Israel High • Invented and pioneered quartz category Quality expansion via powerful Caesarstone® brand P
Slide 4: To be the first and best brand of choice for countertops all around the world
To be the first and best brand of choice for countertops all around the world 4
Slide 5: Driving Growth Through Innovative Design and Colors
DRIVING GROWTH THROUGH INNOVATIVE DESIGN AND COLORS TREND SETTER INNOVATIVE DESIGNS COLOR LEADERSHIP PROPIETARY TECHNOLOGY 5
Slide 6: Pioneering Innovative Designs & Technology
PIONEERING INNOVATIVE DESIGNS & TECHNOLOGY PREMIUM POSITIONING Classico Supernatural Metropolitan Outdoor Collection Wide range of evergreen Inspired by nature Inspired by the industrial trend Inspired by outdoor colors and designs surrounding trends and culture Luxurious marble & granite designs Pr
Slide 7: Superior Value Proposition
SUPERIOR VALUE PROPOSITION Caesarstone quartz products offer superior value proposition to customers Impact Resistant Heat Resistant Easy Fabrication Scratch Resistant Non Porous Multi Functional Stain Resistant Flexible Versatile Designs Food Safety - NSF Certified 7
Slide 8: A Global Leader in the Attractive Quartz Surface Market
A GLOBAL LEADER IN THE ATTRACTIVE QUARTZ SURFACE MARKET Leading player in key regions served Focused on high-end residential and commercial applications A global market leader with ~9% global Solid global distribution platform across quartz market share 1, 2 approximately 50 countries Diversified ge
Slide 9: Attractive Global Quartz Industry Landscape
ATTRACTIVE GLOBAL QUARTZ INDUSTRY LANDSCAPE $105B2 Global Counter-top Market Quartz Countertop Global Share1 Marble 9% 2010 2016 2018 Laminate 10% Quartz 7% 16% 18% Granite 23% Material Other 19% Segmentation Laminate 17% 10% 10% (2018 sales) Granite 28% 27% 23% Engineered Solid Surfaces 22% Quartz
Slide 10: Main Markets
MAIN MARKETS Countertop Demand by Material1 (By Volume) Marble 5% (1.8%) Granite 12% Marble 1% Granite 12% (3.7%) Marble 1% Granite 5% (1.5%) (1.1%) (4.8%) (0%) Laminates 33% Laminates 36% (-0.6%) (-1.4%) Laminates 35% (-0.8%) Total Market Total Market Total Market 4.4M SQM 6.0M SQM 72.2M SQM (1.1%)
Slide 11: Strong Liquidity, Cash Flow and Capital Deployment
STRONG LIQUIDITY, CASH FLOW AND CAPITAL DEPLOYMENT Strong Proven Disciplined Capital Record Capital Position of Cash Deployment Generation • Cash Position $133.2M¹ ² • 3-year⁴ avg. above 70% • Global growth acceleration operating cash flow of Adj. EBITDA plan–strong returns • Net Cash Position $110.
Slide 12: Strategy and Execution
| SIRATEGY =~ AND. _ EXECUTION
Slide 13: Strategic Pillars Support Future Growth
STRATEGIC PILLARS SUPPORT FUTURE GROWTH Three Key Pillars Integral to Unlocking Value Creation Multi-material, premium Global footprint Consumer experience and countertop player expansion customer engagement Underlying Projects All Managed Through Global Growth Acceleration Plan 13
Slide 14: Enhancing Growth Profile
ENHANCING GROWTH PROFILE Global Growth Acceleration Plan Implementation Multi-Material Global Footprint Customer Experience Enhanced Global Infrastructure, 2020 & Beyond Global DNA Vision, Strategy, Values, Organization 2019-2020 Established Global Leadership Team 2018-2019 14
Slide 15: Executing the Global Growth Acceleration Plan
EXECUTING THE GLOBAL GROWTH ACCELERATION PLAN Infrastructure & Efficiency Growth & Innovation Production Supply Chain Health & Safety Go-to-Market Branding Efficiency Excellence Technology Processes People and Business Product Transformation Re-engineering Organizations Development Innovation Reigni
Slide 16: Acquisition of Lioli Ceramica Accelerates Multi-Material Growth Strategy
Entering theofCovid-19 Acquisition Crisis Accelerates Multi-Material Growth Strategy Lioli Ceramica • Lioli is an India-based producer of cutting-edge porcelain slabs Global Porcelain Countertop Market1 ($MM) • First step in effort to become leading premium, multi-material player ~$500M CAGR ~10% •
Slide 17: Acquisition of Omicron Accelerates Global Footprint Expansion Strategy
Entering theofCovid-19 Acquisition OmicronCrisis Accelerates Global footprint expansion Strategy • Omicron Granite and Tile is a premier stone supplier in the U.S. Omicron Footprint • Based in Pompano Beach, Florida, owns and operates 17 showrooms and indoor warehouses • Omicron augments Caesarstone
Slide 18: Financial Summary & Outlook
FINANCIAL SUMMARY & OUTLOOK 18
Slide 19: Revenue & Profitability
REVENUE & PROFITABILITY Revenue ($M) Adjusted Gross Profit and % Margin ($M) 43.0%45.5% 42.4% 39.4% 40.2% 40.1% 39.5% 33.5% 588.1 575.9 538.5 546.0 28.8% 27.3% 27.7% 499.5 486.4 212.5 447.4 189.7 200.2 197.2 356.6 162.1 165.7 149.1 296.6 127.4 134.9 259.7 104.3 198.8 78.3 2010 2011 2012 2013 2014 20
Slide 20: Q4 2020 Financial Performance
Q4 2020 FINANCIAL PERFORMANCE (0.4%) CCB * Adj. Gross Margin 2.2% pp Revenue 2.3% Reported $133.9M $136.9M $39.1M $35.3M % margin 26.4% 28.6% Q4'19 Q4'20 Q4'19 Q4'20 • Lower sale prices • Improved product mix CCB: (2.4%) 7.9% 9.4% (17.1%) • Lower sales volume • Lower raw material costs • Less favora
Slide 21: Positioned to Deliver Long-Term Profitable Growth
POSITIONED TO DELIVER LONG-TERM PROFITABLE GROWTH Long North American Term Target Opportunity Go-to-market Gross Margin Strategy 32-35% Technological Transformation Adj. EBITDA Margin Multi-Material 17-18% 2020 Offering Leverage Performance Production & Premium Adj. Gross Margin1 Supply Chain Brand
Slide 22: Thank You
(© caesarstone THANK YOU
Slide 23: Appendix
APPENDIX 23
Slide 24: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A Net Income $29,006 $29,304 $40,367 $64,353 $80,256 $79,458 $76,483 $27,558 $24,568 $12,862 $7,622 Interest Expense, net $2,370 $4,775 $2,773 $1,314 $1,048 $3,085 $3,318 $5,583 $3,639 $5,578 $
Slide 25: Adjusted Net Income Attributable to Controlling Interest Reconciliation
ADJUSTED NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST RECONCILIATION USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A Net income attributable to controlling interest $28,658 $29,052 $39,632 $63,344 $78,436 $77,766 $74,596 $26,202 $24,405 $12,862 $7,218 Legal settlemen
Slide 26: Adjusted Gross Profit Reconciliation
ADJUSTED GROSS PROFIT RECONCILIATION USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A 2020A Gross profit $78,288 $104,294 $127,395 $162,118 $189,651 $200,225 $212,486 $197,223 $163,414 $148,639 $133,942 Non- recurring import related (income) - - - - - - - - 2,104 -1,501 - expe