Slide 1: Investor's Presentation
12 11 1 10 2 Investor’s Presentation 9 3 Financial reports 31.12.22 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: Matrix - ID
Matrix - ID The biggest IT company in Is Israel. rael. Shows high growth rates over the years – Established in 2001, Turnover of 4.7 billion NIS. CAGR Rev 2018-2022 ~10% CAGR EBIT 2018-2022 ~12% A public company, listed on the TASE in le leading ading Employs about 11 thousand employees (of which in
Slide 4: Matrix Positioning
Matrix Positioning
Slide 5: Leading
Leading Ranked as the leading company in the technology information market for 17 consecutive years, Matrix conducts the largest computing projects using the most advance technology for a client base of Israel's top organizations. Analyst Ranking Leading Partners 11,200 Professionals Leader of the v
Slide 6: Leading
Leading Ranked as the leading company in the technology information market for 17 consecutive years, Matrix conducts the largest computing projects using the most advance technology for a client base of Israel's top organizations. Analyst Ranking Leading Partners 11,200 Professionals 56% Women Matri
Slide 7: Evolution
Information Technology in Israel Evolution Defense Industry Engineering and Consulting Information Technology solutions abroad BPO and Customer Services 2001-2022 From software development services to multidisciplinary integrator 7
Slide 8: 2001-2022 Evolution
2001-2022 Evolution From software development services to multidisciplinary integrator Leaders in Information Technology in Israel - Development from Staff Augmentation to execution of turn--key projects, integration, Managed Services through to the execution of mega projects - The preferred busines
Slide 9: 2001-2022 Evolution: Defense
2001-2022 Evolution From software development services to multidisciplinary integrators Matrix Defense was defined in 2021 as a "defense industry" In 2021, the Ministry of Defense, by virtue of his authority of the law, signed an order directing to define Matrix Defense, as a "Defense Industry“, hav
Slide 10: 2001-2022 Evolution: Engineering and Consulting
2001-2022 Evolution From software development services to multidisciplinary integrators Engineering and Consulting The acquisition of the companies "Aviv", "Programa" and "Dana Engineering" formed the basis for the establishment of Matrix Engineering and Consulting Group: Projects, consulting and Ma
Slide 11: BPO and Customer Service Systems
2001 – 2022 Evolution From software development services to multidisciplinary integrators BPO and Customer Service Systems - Babcom – the second largest call Center in Israel, with thousands of representatives. - Customer Technical assistance services. - Operational outsourcing of Back-Office servic
Slide 12: Matrix Cloud Ecosystem and growth in the cloud
matrix CLOUD Matrix Cloud Ecosystem Matrix growth in the cloud Data, BI & AI IoT Cyber Security 600 486 Cloud (in Millions of Total income from 500 DevOps Tool for Cloud Migration 400 360 NIS) 300 220 Digital ERP Training CRM 200 130 100 50 MSP – Managed Service Provider Marketplace 0 2018 2019 2020
Slide 13: Matrix Cloud Ecosystem and growth in the cloud
matrix CLOUD סיסטם של מטריקס בענן סיסטם-האקו -האקו Matrix growth in the cloud Data, BI & AI IoT Cyber Security 600 486 Cloud (in Millions of Total income from 500 DevOps Tool for Cloud Migration 400 360 NIS) 300 220 Digital ERP Training CRM 200 130 100 50 MSP – Managed Service Provider Marke
Slide 14: Cloud Nimbus
matrix CLOUD NIMBUS The Nimbus project is an important turning point, because it makes possible working in the cloud ,while keeping the data locally in Israel. This removes the barrier that stopped migration to Cloud of government and security systems, based on databases ,that cannot be transferred
Slide 15: Information Technology Abroad
2001 – 2022 Evolution From software development services to multidisciplinary integrators Information technology Abroad USA Projects, Consulting services and Marketing of software products to clients in the US ,in a wide range of technologies and business sectors Expertise in Financial sector – Anti
Slide 16: US Activity
matrix USA US Activity The US activity of Matrix relies on 600+ software professionals employed in North America, on Matrix's broad portfolio of technological capabilities in Israel, on Matrix development centers worldwide (Eastern Europe, India, Israel), and on the company’s relationships with the
Slide 17: USA – Finance
matrix USA – FINANCE The US activity of Matrix relies on 600+ software professionals employed in North North America, on Matrix's broad portfolio of Israel, on Matrix development centers worldwide (Eastern Europe, India, Israel), and on the technological capabilities in Israel, company’s relationshi
Slide 18: USA – Healthcare
matrix USA – HEALTHCARE The US activity of Matrix relies on 600+ software professionals employed in No North rth America, on Matrix's broad portfolio of technological capabilities in Israel, Israel, on Matrix development centers worldwide (Eastern Europe, India, Israel), and on the company’s relatio
Slide 19: USA – Spot On
matrix USA – SPOT ON The US activity of Matrix relies on 600+ software professionals employed in No North rth America, on Matrix's broad portfolio of technological capabilities in Israel, Israel, on Matrix development centers worldwide (Eastern Europe, India, Israel), and on the company’s relationsh
Slide 20: M&A
M&A
Slide 21: M&A strategy (alongside organic growth)
M&A strategy (alongside organic growth) Zebra In the course of its years of activity, the company has made dozens of successful acquisitions in Israel and abroad and established many new RDT ventures. Here are some examples: Matrix 2023 Medika Gestetnertec 2022 Medatech 2021 Dana Engineering AMCG/Av
Slide 22: Financial Reports
OF CS matrix ore Financial Reports
Slide 23: 2022 Accomplishments
2022 Accomplishments Matrix shows consistent improvement in its results and a sets new records in revenues, in gross profit, operating profit, net profit, cash flow, and EBITDA. • Double-digit organic growth in operating profit • Growth in the activity in Israel (despite the elimination of the reven
Slide 24: 2022 - A record year in all activity indicators
2022- A record year in all activity indicators – Despite the sale of Infinity Labs Growth in revenue, gross profit, operating profit, net profit, cash flow, and EBITDA Sales – 7.2% organic growth to NIS 4.67 billion (8.5%+ without neutralizing Infinity Labs and RDT) Operating Profit - organic growth
Slide 25: Revenue Segmentation by Activity
* Revenue Segmentation by Activity 16% Government & Defense 25% Finance 11% Hi Tech Industry, Communications and Retail 13% 20% Healthcare and Transportation 15% Other * As a rate of 2022 revenues
Slide 26: Consistent improvement in performance: Revenues
Consistent improvement in performance over the years Steady growth in revenue, profit, and dividends Change Change 10.2% FY/2022 FY/2021 in % Q4/2022 Q4/2021 in % Revenues 4YR CAGR Revenues 4,672 4,360 7.2% 1,218 1,159 5.1% +7.2% 4,672 4,360 Revenue growth: An increase of 7.2% to approximately NIS 3
Slide 27: Consistent improvement in performance: Gross profit
Consistent improvement in performance over the years Steady growth in revenue, profit, and dividends Gross profit 9.6% 4YR CAGR Change Change in FY/2022 FY/2021 Q4/2022 Q4/2021 in % % +6.6% Gross profit 672,007 630,403 6.6% 183,217 173,145 5.8% 672,007 630,403 % of sales 14.4% 14.5% 15% 14.9% 562,99
Slide 28: Consistent improvement in performance: Operating profit
Consistent improvement in performance over the years Steady growth in revenue, profit, and dividends FY/2022 FY/2021 Change in % Q4/2022 Q4/2021 Change in % 12.3% 4YR CAGR Sales & marketing 166,246 147,555 12.7% 45,896 40,675 12.8% Operating profit expenses General & administrative 155,273 153,456 1
Slide 29: Consistent improvement in performance: Net profit
Consistent improvement in performance over the years Steady growth in revenue, profit, and dividends 12.7% FY/2022 FY/2021 Change in % Q4/2022 Q4/2021 Change in % Net profit 4YR CAGR Net financing 45,781 45,198 1.3% 23,854 11,862 101.1% expenses 354,481 Taxes on 121,559 71,785 65,446 9.7% 16,953 17,
Slide 30: Consistent improvement in performance: Adjusted EBITDA
Consistent improvement in performance over the years Steady growth in revenue, profit, and dividends Adjusted EBITDA* 12.8% FY/2022 FY/2021 %-שינוי ב Q4/2022 Q4/2021 Change in % 4YR CAGR Adjusted 406,623 383,737 6% 108,442 102,477 5.8% EBIDTA % of sales 8.7% 8.8% 8.9% 8.8% +6% 406,623 383,737 Grow
Slide 31: Operating Segments
Operating Segments © matrix©e
Slide 32: Income in Israel - 1-12/22
Income in Israel - 1-12/22 * )Millions of NIS( 5.2% increase in Operational 16.2% 11.3% 6.9% increase in Income in Profit in 2022 4YR CAGR 4YR CAGR 2022 306 4,418 291 4,133 239 3,635 3,343 195 2,883 168 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 *Including results from activity in Europe (imm
Slide 33: Activity sectors in Israel - 2022
Activity sectors in Israel - 2022 )Thousands of NIS) Income Operational Profit 2022 2021 Difference % 2022 2021 Difference % IT solutions & services, consulting & management 2,508,477 2,434,298 74,179 3% 180,359 186,776 )6,417( )3.4%( in Israel Organic growth 7.4% Cloud and Computing 1,427,416 1,238
Slide 34: Activity in the USA
Activity in the USA O°e®, matrix One
Slide 35: Activity in the US – 1-12/2022
Activity in the US – 1-12/2022 (in millions of $) Operating profit ($) - 40.9% growth for Record revenue ($) in the US - $129M the period, and increase in the rate of 17.3% growth for the period profitability from 11.5% to 13.8% 18.5 17.9 +40.9% 17.9 129 16.1 110 108 110 104 12.7 2018 2019 2020 2021
Slide 36: Financial Indicators
Oy O'>o' © matrix ee Financial Indicators
Slide 37: General trends and their effect on the company
General trends and their effect on the company No significant The company has no CPI-linked financial debt (except for rent) Rise in inflation influence Some of the company's revenues are linked to the CPI Expected continued Negative effect on results Sharp increase rise in financing in interest rat
Slide 38: Financial Indicators
Financial Indicators (NIS millions) 31.12.2022 31.12.2021 475 Cash & cash equivalents 839 534 Unused credit facilities 927 684 Total liquid assets 1,766 1,218 Equity/ debt 965 structure Cash flow from current operations NIS 387 million for the period, compared to NIS 510 219 million in the correspon
Slide 39: Financial Indices
Financial Indices (NIS millions) The company maintains adequate coverage ratios, alongside an increase in activity volumes and making significant investments, (including in company acquisitions - over NIS 250 million in the last 5 years). 31.12.2022 31.12.2021 1.34 1.15 0.98 0.71 0.94 Equity 965 878
Slide 40: Backlog
Backlog +7% growth in order pipeline Accumulated backlog totaling NIS 5.8 billion (of which NIS 4.4 billion for 2023) Compared to the backlog of orders for 2021 totaling NIS 5.4 billion * For details of the company's assumptions in calculating the order backlog, see Section 8 of Chapter A (Descripti
Slide 41: Dividend distribution
Dividend distribution Date of Dividend per share Amount (agorot) (NIS millions) distribution 12.4.22 65 40.9 23.6.22 71 44.6 )*( 28.8.22 261 164.2 04.12.22 55 34.6 Total as of 452 284.3 31.12.2022 Total - 31.12.2021 234 146.5 % of change +93.2% +94.1% * Including a special dividend of NIS 121.5 mill
Slide 42: Total dividend of NIS 37.4 million to be distributed
Total dividend of NIS 37.4 million (0.59 ILS per share), to be distributed by 16 of April, 2023
Slide 43: Thank you!
Thank you!