Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION March 2024
Slide 2: Disclaimer
Disclaimer This presentation was prepared by the Ackerstein Group Ltd. (the "Company" and / or the "Group") as a general presentation about the Company and is not intended to replace the need to review the Company's full reports to the Tel Aviv Securities Authority and the Tel Aviv Stock Exchange Lt
Slide 3: Israel's leading manufacturer and provider of concrete products & solutions
Israel’s leading manufacturer and provider of concrete products & solutions for infrastructure, safeguarding, construction, and landscape design 100 17 573 1.04 Years of Production Employees ILS Billion Excellence1 Facilities Revenue 183 50 427 1.15 ILS Million ILS Million ILS Million ILS Billion EB
Slide 4: Operating across four synergistic segments, in thriving sectors
Operating across four synergistic segments, in thriving sectors Revenue Breakdown Industry Segment Engineering Segment 6% 3% Infrastructure and landscape Unique solutions for complex projects design products with combined prefabricated buildings 1.04 & elements 35% ILS Billion 56% Revenue Overseas I
Slide 5: Robust growth across all financial metrics
Robust growth across all financial metrics1 The ongoing demand for the company's products heightened due to the war 18 % 62 % 62 % 55 % 81 % 65 % 1,151 1,037 136 1,084 58 94 183 782 107 974 640 84 76 118 38 60 101 23 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 202
Slide 6: Market Opportunity
Market Opportunity Trends and shifts in the Israeli market New defense perception Extensive infrastructure Expediting the shift since October 7th development towards prefabricated construction solutions Rebuilding protective homes By 2050, Israel's population Growing demand to in the southern and no
Slide 7: Israel is transitioning from planning to execution
Israel is tansitioning from planning to execution Defense Minister Gallant: "We will address gaps in defense The rehabilitation plan of the “Gaza Envelope” areas has been and act to implement the government's decision from 2018 approved, with a value exceeding 18 billion shekels within the framework
Slide 8: Diverse range of products and solutions under one roof
Prefabricated construction: הדפסת מוצרים רכבת Rail אדני concrete sleeper דחיקה Push צינורות pipes משרדים ומסחר, מבני מגורים:בנייה מתועשת 3D printing אופנייםto Stones שבילי תחימת define bike lanes Concrete buildings and walls תלת מימד אקוסטיים קירות Acoustic walls נוף
Slide 9: Ackershwin Group's power multipliers
Ackershwin Group's power multipliers enable seamless integration into any construction or infrastructure project in Israel Extensive professional Widest variety of Advanced production Financial strength knowledge products & solutions facilities deployed enables investment in nearly 100 years of unde
Slide 10: Segments Activity
Segments Activity Industry Segment Engineering Segment Overseas Industry Segment Real Estate Segment Acoustic walls TSR Aerial Photography Investor presentation I March 2024 I 10 I
Slide 11: Industry segment
Industry segment 22 % 140 % 74 % Sustained growth in revenue and profit, attributed to investment initiatives in 2022 and 2023 366 63 93 317 300 56 53 28 26 2021 2022 2023 2021 2022 2023 2021 2022 2023 Revenue1 Operating EBITDA1 income1 (1) Amounts in millions of ILS, percentages represent the growt
Slide 12: The widest range of products for hundreds of public and private projects
Industry Segment The widest range of products for hundreds of public and private projects Photography by Assaf Pinzuk Stones to define bike lanes Cladding and facades Photography by Nimrod Levi Landscape design Retaining walls Pipes for infrastructure Investor presentation I March 2024 I 12 I
Slide 13: Engineering segment
Engineering segment 145 % 548 % 273 % Revenue growth and profitability boost, driven by increase in project size and scope of work 582 82 99 345 238 23 37 27 13 2021 2022 2023 2021 2022 2023 2021 2022 2023 Revenue1 Operating EBITDA1 income1 (1) Amounts in millions of ILS, percentages represent the g
Slide 14: Customized solutions for diverse projects
Engineering Segment Customized solutions for diverse projects Diverse client base: infrastructure contractors, developers, government, and more Infrastructure elements Rail concrete sleeper Authorized supplier Authorized supplier for the State of Israel for Israel Railways TSR Aerial Photography Aco
Slide 15: Strategic focus for continued profitable growth
Strategic focus for continued Engineering Segment profitable growth Expanding operations in the protective structures and prefabricated construction Meeting the growing demand Engineering Segment Industry Segment Continuing to invest in innovation Constant expansion of products and solutions Enginee
Slide 16: Prefabricated construction: the key to accelerating construction
Engineering Segment Prefabricated construction: the key to accelerating construction Faster Smarter Greener 35 -65 % % Shorter construction time 50 -75 % % Labor saving at construction site 90 % Reduction of construction waste Higher productivity: 3-4X Reduces noise and air pollution Accurate, high-
Slide 17: Proactively prepared for increased demand in prefabricated construction
Engineering Segment Proactively prepared for increased demand in prefabricated construction Expanding production capacity Enhancing planning expertise Throughout 2023, production capabilities were in collaboration with PCE1, a UK-based company with 55 expanded, alongside the development of versatile
Slide 18: Leveraging design and execution capabilities in response to increasing demands
Engineering Segment Leveraging design and execution capabilities in response to increasing demands Prefabricated houses – Tkuma Project מפעל החברה לאלמנטים מתועשים ELBIT building in Ramat Bekah Prefabricated houses – Tkuma Project Investor presentation I March 2024 I 18 I
Slide 19: Entering new categories: Construction and Complex Steel Structures
Entering new categories: Construction and Complex Steel Structures Acquired KALRAM Amit Trickel Photography KALRAM operates in the field of perimeter Carousel at Savidor Tel Aviv train station protection for the business sector, specializing in complex steel structures & elements Successful integrat
Slide 20: Overseas Industry segment
Overseas Industry 2023 2022 2021 segment Revenue $M EBITDA $M 16 (6.6) 27 3 23 2.6 2023: Results impacted by macroeconomic environment and high interest rates Landscape design products production pioneer Implemented management-level Operating in the US West Coast personnel changes and through subsid
Slide 21: Demand for hardscape products expected to reach $3.9 billion in 2025
Overseas Industry Segment Demand for hardscape products is expected to increase to $3.9 billion in 2025 Expected demand by Product type Others Stone tiles Aggregates Ready mic concrete Continued growth in the Healthy economic Brick popularity of outdoor outlook, which will Lumber living spaces, such
Slide 22: Real Estate Segment
2023 Real estate value breakdown Real Estate Segment 54 Retail 593 337 427 ILS million 23 ILS million 8 ILS million Industrial 984 ILS million commercial Investment NOI Net Debt properties Assosiated with real-estate (2) Including real estate that is classified as fixed assets (557 ILS million) and
Slide 23: Ackerstein House
Ackerstein House: Value-added features 23,000 square meters of mixed-use space, including: 50 apartments of 50 square meters each 500 square meters of commercial space Status: Approval has been received for granting validity under the terms of the comprehensive plan for Herzliya, on the basis of whi
Slide 24: Ackerstein Towers: Second Phase
Ackerstein Towers: Second Phase 55,000 square meters of mixed-use space, including: 41,000 square meters commercial 10,000 square meters residential 4,000 square meters retail Status: Approval has been received for granting validity under the terms of the comprehensive plan for Herzliya, on the basi
Slide 25: Potential for growth and value creation
Potential for growth and value creation Potential value-add Ashdod factory Value-add Ackerstein Towers Value-add Ackerstein House 23 ILS Million 2023 NOI Illustration Investor presentation I March 2024 I 25 I
Slide 26: Financial data
Financial data Q4 2023 and YE 2023 Investor presentation I March 2024 I 26 I
Slide 27: Revenue & EBITDA
Revenue & EBITDA Consolidated basis, in thousands ILS Q4 2023 Q4 2022 Q4 2021 Revenue 1,036,962 782,253 640,491 251,541 199,531 171,894 EBITDA 182,789 117,858 100,713 49,614 37,461 29,863 Net profit 93,615 75,704 60,337 32,254 42,699 30,061 Industry & Engineering segments Revenue 948,175 , 538,285 2
Slide 28: Consolidated balance sheet
Consolidated balance sheet Dividend (ILS M) Attributed to profits generated As of December 31, 2022, and 2023 in million ILS in the years below 50 Current assets: 2023 2022 Current liabilities 2023 2022 40 Cash and cash equivalents 134 178 Credit from banks 42 54 Short-term investments - 65 Lease cu
Slide 29: Plays an integral role in the construction boom in Israel
Plays an integral role in the Increased demand for the Financial resilience construction boom in Israel company's offerings to support future growth Comprehensive products and solutions increasing demand in the defense Strong and stable cash flow across the entire value chain and infrastructure sect
Slide 30: Thank you!
Thank you! Investor presentation I March 2024 I