Slide 1: Investors Presentation Financial Reports 30.06.23
Investors Presentation Financial Reports 30.06.23 Created in Midjourney AI platform
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: Second quarter 2023
Second quarter 2023 Continued growth in Sales, Gross profit, Operating profit, Net profit and EBITDA Sales - 10.4% growth to ILS 1.29 billion (6.8% organic growth) Gross profit - 15.9% growth to ILS 185 million while improving its rate to 14.4% Operating profit - 16% growth to ILS 98 million (12.8%
Slide 4: First Half of 2023
First Half of 2023 Continued growth in Sales, Gross profit, Operating profit, Net profit and EBITDA Sales - 10.9% growth to ILS 2.58 billion Gross profit - 14% growth to 374 million ILS while improving its rate to 14.5% Operating profit - 13% growth to ILS 199 million while improving its rate to 7.7
Slide 5: Matrix 2023
Matrix 2023
Slide 6: MTRX
4.7 billion ILS Sales in 2022 (2.6 billion ILS on 1-6/23) #1 Provider of Software services in Israel, for 18 11,200 consecutive years * Employees > 100 MTRX Aa3 rating Mergers & Acquisitions 15 years running TASE 10/10 31/35 Customers out of Customers out of > 3000 the leading Israeli the Tel Aviv 3
Slide 7: Software & Computing Solutions in Israel & Europe
Software & Computing Software & Computing Management Consulting / Solutions in the USA & Solutions in Israel & Europe Engineering Canada
Slide 8: Activity in Israel
Activity in Israel Created in Midjourney AI platform
Slide 9: Software and Computing Solutions in Israel
Software and Computing Solutions in Israel • Dedicated core systems: ERP, CRM, modernization • Computing and communication infrastructures • AI, ML and DATA systems • Private and public Cloud services • Cyber protection • Partial to full Outsourcing • End-to-end Digital solutions • Performance of in
Slide 10: Leading Partners
BE Microsoft @ mongoDB. @ pic = EasySend SAPS Leading Partners ; >| Google Cloud aws @dynatrace De@LLEMC NVIDIA. 4 eae) @ cueck POINT & databricks £) Priority splunk> TERE cowl 3 bme real: vmware’ & veeAmM run: . - oa RedHat @ NICE-ACTIMIZE ORACLE Checkmarx & paloalto’ ((l) Sentinelone ® % Be
Slide 11: Digital Transformation Core Business
Digital Transformation Core Business ERP, CRM, IP Solutions by Data, AI & Matrix, Modernization Our main pillars Analytics Civil and Security D2C3 Cloud Cyber Private and Public Civil and Security
Slide 12: Ranking
Ranking Leader of the Value-Added Leader of the IT Services market in Israel Services market in 47 categories 15 consecutive years 18 consecutive years May 2023 May 2023
Slide 13: DATA & AI
DATA & AI A large Data & AI Division Leader of the Israeli Data 10 with an ecosystem of 600 > Projects more than & AI industry for 30 technology partners consecutive years Data & Analytics Data & Analytics Strategy Advanced Analytics, Data BI Implementation / Cloud migration Consulting Science and M
Slide 14: DIGITAL
DIGITAL Millions of Israeli citizens use the Creation and Management of Digital solutions and services we have developed in the worlds of Digital assets for many Banking, Government, hundreds of clients Communications, Health, Local Authorities, Retail and more... Web & Mobile Development UX Design
Slide 15: Digital Transformation Projects
Digital Transformation Projects
Slide 16: Civil Cyber
Civil Cyber Monitoring more than Monitoring more than 100G 11,000 servers, Managing events. Handling more than about 50,000 endpoints, with 16,000 suspicious events more than 120,000 annually events per minute SIEM as a Service Cyber Security Product Cyber Security Cloud Implementations (on premise)
Slide 17: CLOUD
CLOUD >5,000 Subscription clients AWS Premier Hundreds of Cloud in: AWS, Google Cloud, Tier Partner Migration Projects Microsoft Azure CSP FinOps Enterprise Public Cloud Enterprise CLOUD Integrations & Services (IaaS; PaaS, Compute as a Service)
Slide 18: Nimbos
Nimbos The Nimbos Project is an important turning point as it allows migration to cloud, while data remains in Israel. Therefore, the barrier that stopped migration of data (which cannot be transferred to servers outside the country), to the Government and Security Systems Cloud, has been released.
Slide 19: Matrix Market Place
Matrix Market Place Market place on boarding Oracle DB migration Automated Landing Zone Build a Cloud Lakehouse on AWS SAP Migration CoDx - OCR Deep Learning Technology Enterprise Migration FinOps Framework Application Modernization Databricks pro-managed service Enso Application Security Posture Ma
Slide 20: Matrix Market Place
Matrix Market Place MongoDB By Matrix Quali By Matrix Mendix By Matrix Cloudera CDP by Matrix SAP BusinessObjects Supported by Matrix Dynatrace By Matrix Aerospike Database by Matrix Vault by Matrix BMC TrueSight by Matrix Red Hat® OpenShift® by Matrix BMC Client management by Matrix Aqua Security b
Slide 21: AI@matrix
AI@matrix © 2015 Forrester Research, Inc. Reproduction Prohibited Created 21 in NightCafe AI platform
Slide 22: Global Market Size
Global Market Size https://www.precedenceresearch.com/artificial-intelligence-market
Slide 23: By Income Type
By Income Type https://www.precedenceresearch.com/artificial-intelligence-market
Slide 24: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Customer Areas of growth Engagement Areas of maturity & Business growth Applications AI models Data Infrastructure
Slide 25: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth Responsible growth System Reskilling & AI Integration Upskilling Customer Engagement Compliance Upskilling Marketing Contact Center Conversational Autonomous Agents Personalization … nontechnical employees Interpr
Slide 26: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth growth Upskilling … nontechnical employees Reskilling nontechnical employees End to End agile projects Upskilling Cloud AI Engineering Services - in Nvidia’s senior partner – the development teams collaboration wi
Slide 27: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth growth Establishment of the largest data projects (that enable AI) in the country: National Data Lake, Elbit, Ministry of Health, Ministry of Education, Clalit Health AI Training Services and Build Models more Val
Slide 28: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth growth Marketing Contact Center Conversational Autonomous Agents Personalization … • 7 years of activity in developing AI models for military applications, G2G projects ,and recently for civil applications too. A
Slide 29: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth growth • Application of AI models developed by Matrix or available for use (Open AI, Bard, etc.) for specific business processes. • Integration of AI models and applications into Matrix's IP such as Tafnit, Priori
Slide 30: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth growth Customer Engagement Marketing Contact Center Conversational Autonomous Agents Personalization … • Transformation Business process of representative-intensive Service Centers to AI-based Service Applications
Slide 31: Matrix operates in the field of AI from end-to-end
Matrix operates in the field of AI from end-to-end Areas of maturity & Areas of growth Responsible growth System Reskilling & AI Integration Upskilling Compliance End-to-end projects (from infrastructure to Upskilling nontechnical customer/employee employees Consultation and experience) to leverage
Slide 32: Revenue Break-down by Industry
Revenue Break-down *by Industry 16% Government and Defense 25% Finance 11% High Tech Industry, Communications and Retail 13% 20% Healthcare and Transportation 15% Other *According to 2022 revenues
Slide 33: Governmental Sector
Governmental Sector 25% Government & Defense 20< 136 30 Public Local Authorities Government Companies Offices *According to 2022 revenues
Slide 34: Defense Sector
Defense Sector Defense Industry 25% 1,000 2,000 Hundreds of Government & Defense Defense Projects in Israel and Employees in the Employees with high abroad Defense sector security clearance *According to 2022 revenues
Slide 35: Financial Sector
Financial Sector 100 < Active customers in the financial sector Factoring Open Banking Digital assets AML Credit Scoring Core systems 20% CRM Cyber & Security Mutual Funds Data Fraud Prevention Trade control Integration Bank and non-bank credit
Slide 36: Consulting, management / engineering
Consulting, management / engineering Created in Midjourney AI platform
Slide 37: Consulting, Management / Engineering
Consulting, Management / Engineering • Project management and supervision • 30 mega projects in the field of National infrastructures • Management and strategic consulting • Engineering and budgetary control • Supply chain management and computerization • Automation and computer systems of logistics
Slide 38: Transportation sector
Transportation sector Management and Supervision of National Infrastructure Projects to the amount of about 40 billion ILS 10% Health and Transportation *According to 2022 revenues
Slide 39: The Israeli market
The Israeli market Market segments VS adoption of technologies Level of DATA CRM DIGITAL ניהול,ייעוץ investments In CORE CLOUD CYBER August 2023 AI /ERP UI/UX הנדסה Government Finance Defense Hi-tech Industry & Retail Significant growth Healthcare Growth Stability Transportation , constructio
Slide 40: The Israeli market
The Israeli market Market segments VS adoption of technologies Level of DATA CRM DIGITAL investments In ENGENEERIG CORE CLOUD CYBER AI UI/UX & SCM August 2023 /ERP Government Finance Defense Hi-tech Industry & Retail Significant Healthcare growth Growth Stability Transportation , construction, and n
Slide 41: Activity in the US
Activity in the US Created in Midjourney AI platform
Slide 42: About Matrix-IFS
About Matrix-IFS 15 561 20 Years Projects Countries of experience Implemented Operations End-to-end financial Specialized expertise Market leader in Offices in US, Partner of leading crime IT services: - providing services financial crime Canada, Europe, Asia FinCrime technology advisory, implementa
Slide 43: Cyber Security
Cyber Security core solutions CISO-As-A-Service Targeted Threat Intelligence Risk Management Missing a CISO function in your organization? No Our research and analysis of the Our in-depth risk-driven analysis provides problem, Matrix-IFS will act as your trusted CISO, accumulated data collected by t
Slide 44: Fraud Prevention
Fraud Prevention core solutions Commercial Banking Fraud Prevention Online & Mobile Banking Fraud Prevention Payment Fraud Prevention Leverage our experience in implementing more than Matrix-IFS helps financial institutions to take a step Our fraud prevention team will implement 200 fraud detection
Slide 45: Anti-Money Laundering
Anti-Money Laundering core solutions Commercial KYC/ CDD / EDD Transaction Monitoring Sanctions Screenings Case Management Our experts will evaluate your current KYC With our help, you can effectively Each international sanction Our Advisory team is able to examine program and advise your AML team o
Slide 46: Our Partners
© THETARAY E pitneybowes() FICO reer Osas Bottomline Quentexs NICE-AcTiMize — blueprism
Slide 47: Global Customers
Global Customers US Banks US subsidiaries of international Banks International Bank Bank United N.A Germany Netherlands Egypt Citibank Baden-Württemberg Afremix bank DB - Deutsche Bank Rabo Bank City National Bank UK First Bank LBBW – Landes bank France Barclays First Citizens Banks CIC Crédit Indus
Slide 48: Financial Reports Q2/2023
Financial Reports Q2/2023
Slide 49: Highlights of Q2 2023
Highlights of Q2 2023 ▪ Double figure growth in Sales (10.4%), Gross profit (15.9%) and Operating profit (16%), 12.8% organic growth ▪ The best half-year of all times in terms of Sales, Gross, Operating, and Net profit ▪ Organic growth of activity in Israel (despite the Passover holiday) • Accelerat
Slide 50: Key data from the Q2/2023 Income Statement
Key data from the Q2/2023 Income Statement compared to the corresponding quarter (in Millions ILS) Q2 2023 Q2 2022 הפרש % -שינוי ב Revenues 1,286.7 1,165.7 121 10.4% Gross Profit 185 159.6 25.4 15.9% SG&A 87.4 75.4 12 15.9% Operating Income* 97.7 84.2 13.5 16% Financial expenses, net 15.4 4.1 11
Slide 51: Key data from the H1/2023 Income Statement
Key data from the H1/2023 Income Statement compared to the corresponding semiannual (in Millions ILS) H1 2023 H1 2022 הפרש % -שינוי ב Revenues 2,577.9 2,323.7 254.2 10.9% Gross Profit 373.7 327.4 46.3 14% SG&A 174.5 151.1 23.4 15.5% Operating Income* 199.1 176.3 22.8 13% Financial expenses, net
Slide 52: Summary of Q2, 2023 - organic growth despite the Passover holiday
Summary of Q2, 2023 - organic growth despite the Passover holiday The results (in millions of ILS) Revenues Gross Profit *Operating Income 12.8% 6 .8% Organic Organic +15.9% +16% 1,286 185.0 97.7 1,165 84.2 159.6 13.7% 14.4% 7.2% 7.6% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 10.4% growth in R
Slide 53: Summary of Q2, 2023 - organic growth despite the Passover holiday
Summary of Q2, 2023 - organic growth despite the Passover holiday The results (in millions of ILS) Net income attributed to Adjusted EBITDA * Net Income** shareholders** +15.6% +2.6% +2.2% 114.8 61.3 62.8 99.3 57.3 58.6 ֵ8.5% 8.5% ֵ8.9% 8.9% 5.3% 4.9% 4.9% 4.6% Q2 2022 Q2 2023 Q2 2022 Q2 2023 2.6% i
Slide 54: Consistent growth in Revenues and Profit (ILS millions)
Summary of H1 2023 – Consistent improvement in performance over the years Consistent growth in Revenues and Profit (ILS millions) Gross Profit *Operating Income Revenues 10.3% 10.6% 13.6% 4YR 4YR 4YR +10.9% CAGR +14.1% CAGR +13% CAGR 2,577 373.7 199.1 2,323 176.3 2,173 310.6 327.4 164.2 1,738 1,830
Slide 55: Consistent growth in Revenues and Profit (ILS millions)
Summary of H1 2023 – Consistent improvement in performance over the years Consistent growth in Revenues and Profit (ILS millions) Net income attributed Adjusted EBITDA * Net Income** to shareholders** 13.5% 14.0% 17.7% 4YR 4YR 4YR CAGR CAGR CAGR +12.6% 230.7 129.2 128.2 119.4 116.4 204.7 109.8 192.0
Slide 56: Contribution to Profit
Distribution of revenue and profit by activity sectors Q2/2023 Revenues Contribution to Profit 9% 4% 18% IT Solutions Software products 5% 26% 49% Cloud solutions and IT 55% infrastructure Training and 20% implementation USA 6% 8%
Slide 57: Activity in Israel
Activity in Israel Created in Midjourney AI platform
Slide 58: Activity in Israel - Q2 2023
Activity in Israel - Q2 2023 * (Millions of ILS) 9.3% Increase in Operating 10.2% Increase in Revenues Income 16.8% 10.2% 4YR CAGR 4YR CAGR 82 1,214 73 75 1,102 1,008 823 800 51 45 Q2/2019 Q2/2020 Q2/2021 Q2/2022 Q2/2023 Q2/2019 Q2/2020 Q2/2021 Q2/2022 4-6/2023 * Including ncluding immaterial activi
Slide 59: Activity Sectors Q2 2023
Activity Sectors Q2 2023 Revenue growth Growth in profit compared to the Share in operating corresponding quarter % of Revenue compared to the Profit margin Organic/M&A profit corresponding quarter IT Solutions and Consulting 13% 54.7% 9.3% 6.8% 48.9% Organic Cloud solutions and IT Including consoli
Slide 60: Activity Sectors Q2 2023
Activity Sectors Q2 2023 Revenue growth Growth in compared to profit compared to Share in % of Revenue Profit margin Organic/M&A the corresponding the corresponding operating profit quarter quarter IT Solutions and Consulting in Israel 13% 54.7% 9.3% 6.8% 48.9% Organic IT Solutions in the USA 34.2%
Slide 61: Activity in the USA
Activity in the USA Created in Midjourney AI platform
Slide 62: Q2 2023 –Activity USA
Q2 2023 –Activity USA (in millions of $) 22.1% Revenue growth (in $) versus 24.4% growth in Operating Income (in $) the corresponding quarter compared to the corresponding quarter, with an increase in profit rate to 14.9% +24.4% 34.2 5.1 4.7 4.7 28 26.8 28.0 4.1 24.7 3.0 Q2/2019 Q2/2020 Q2/2021 Q2/2
Slide 63: Activity USA – Q2 2023
Activity USA – Q2 2023 (Millions of ILS) 34.2% growth in Revenues (in ILS) 34.8% growth in Operating Income (in compared to the corresponding ILS) compared to the corresponding quarter quarter, with an increase in profit rate to 14.9% 123.1 18.3 16.9 16.6 101 91.7 13.5 86.8 87.3 9.8 Q2/2019 Q2/2020
Slide 64: H1 2023 – Activity USA
H1 2023 – Activity USA (in millions of $) 12.3% growth in Revenues (in $) 26.4% growth in Operating Income (in $) compared to the corresponding period compared to the corresponding period, with an increase in the profit rate to 14.2% 10.1 64.1 8.8 9.1 55 54.0 57.1 53.4 7.2 5.6 H1/2019 H1/2020 H1/202
Slide 65: H1 2023 – Activity USA
H1 2023 – Activity USA (Millions of ILS) 23.8% growth in Revenues (in ILS) 38.3% growth in Operating Income (in ILS) compared to the corresponding period compared to the corresponding period, with an increase in the profit rate to 14.2% 230.9 35.2 31.7 32.9 199 189.2 186.6 174.1 23.8 18.1 H1/2019 H1
Slide 66: Summary of Q2, 2023 The results (in millions of ILS)
Financing expenses, net (Millions ILS) Q2 2023 Q2 2022 Summary of Q2, 2023 Interest, commission and others, net 9.7 5.1 The results (in millions of ILS) Currency exchange differences Accounting financial expenses (3) 8.7 (5.5) 4.4 Total Financial expenses, net 15.4 4 Net income attributed to Adjuste
Slide 67: Stabilizing the increase of interest expenses
Stabilizing the increase of interest expenses, despite the continued rise of market interest rates 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 31.3.22 30.6.22 30.9.22 31.12.22 31.3.23 30.6.23 5% 4% Bank of 3% Israel 2% interest 1% rate 0% 23.9 Break-down of financing 16.9 expenses 13.9 15.4 (in millions ILS) 4.9 10
Slide 68: Financial indicators
Financial indicators (in millions of ILS) 30.06.2023 31.12.2022 Cash Flow from Operations LTM Cash and cash equivalents 508 839 Unused credit facilities 827 927 460.4 Total liquid assets 1,363 1,766 412.2 Cash flow from Operations 278.9 272.4 A positive cash flow of ILS 95.5 million in Q2, compared
Slide 69: Financial indicators
Financial indicators (in millions of ILS) 1,039 478 Debentures Company 30.06.2023 31.12.2022 Series B equity Equity 1,039 965 % of Balance Sheet total 26.4% 24.1% Equity/ debt Current Ratio 1.17 1.21 390 structure Net debt-to-equity ratio 15.2% 9.6% Loans from financial Net debt to adjusted EBITDA*
Slide 70: Dividend distribution
Dividend distribution Amount Dividend per (in millions share Dividend of ILS) (in ILS) Date of distribution yield 37.5 0.59 2023 April 3.9% 45.1 0.71 2023 June 82.6 1.30 H1 2023 Total 284.3 4.52 (*)FY 2022 Total 146.5 2.34 FY 2021 Total 124.8 2.01 FY 2020 Total 116.1 1.87 FY 2019 Total *Includes a s
Slide 71: Dividend of ILS 43.8 million (0.69 ILS per share)
Dividend of ILS 43.8 million (0.69 ILS per share)
Slide 72: Thank you!
ome matrix Thank you!