November 18 th , 2019
Important Legal Notes It is specifically noted that the ILCO investment strategy presented herein, including the Receipt of the information delivered or to be delivered to you by Israel Corporation Ltd. investment guidelines (slides 3 & 5) and the initial sectors for investments (slide 8), ( “ ILCO") is subject to the following: constitutes forward-looking statements, which are based on general intentions of ILCO as of the date hereof and not guarantees of future performance. The investments strategy of The information delivered or to be delivered to you in this presentation does not ILCO may not be executed, in whole or in part, or may be executed in a different manner constitute an offer, a solicitation of an offer or a recommendation to sell, purchase, than presented herein, as a result of such risks and uncertainties or as a result of changes subscribe for or do any transaction in the securities of ILCO and/or any of its affiliates and updates to such investment strategy, principles, guidelines or sectors as approved by (collectively, “ ILCO Group ” ) and/or any other entity, in Israel or in any other jurisdiction. ILCO Board from time to time. Furthermore, the objective of such investments strategy (if This presentation does not constitute an offering document or investment advice and executed) might not be realized in the long or in the short term, and in this scope there does not replace the independent analysis and discretion of an investor. may be an increase in the net debt of ILCO in the short and medium term. ILCO Group cautions you that the above list of important risk factors is not This presentation, as well as other oral or written statements made by ILCO or any of its comprehensive. ILCO refers you to filings that ILCO has made with the Tel Aviv Stock affiliates, officers, advisors and employees ( “ ILCO Group Officers"), contain forward- Exchange Ltd. (TASE). Global trends, market and sectors information (including examples) looking statements and forward-looking information, including, but not limited to, contained herein are based on third parties' sources or publicly available information. ILCO those that discuss strategies, goals, developments, trends, outlooks, investments and ILCO Group Officers cannot assure you as to the accuracy or completeness of this strategies, investment guidelines or principles, potential sectors for investment, non- information. historical matters, projected economy measures, revenues, returns, net debt or other financial or statistical measures. ILCO and ILCO Group Officers do not undertake to update any information provided herein. Any opinions expressed herein are subject to change without notice and ILCO do Such forward-looking statements are based on the current assumptions, intentions and not undertake to update or keep current any of the forward-looking statements or plans of ILCO Group. These forward-looking statements may not materialize or information. Considering the forward-looking nature of the information contained herein, materialize in a significantly different manner than anticipated or planned, and are ILCO and ILCO Group Officers make no representation or warranty of any kind with subject to risks and uncertainties, some of which are not under the control of ILCO respect to such information. Group, including, among others, the following: (a) changes in worldwide economic and Recipients and/or viewers are cautioned to consider all of the abovementioned notes and political conditions; (b) adverse business conditions or changes in market trends; (c) the to not place undue reliance on such information. extent to which ILCO is able to successfully execute acquisitions and/or implement business strategies; (d) legislation and regulation affecting ILCO Group and/or the The information provided by ILCO is provided solely as a convenience. In case of any potential portfolio companies; (e) non-receipt of approvals or third parties' consent; or (f) discrepancy between the information contained herein and the information contained in occurrence of risk factors associated with making investments and/or the activities of the official reports of ILCO to the Israeli Securities Authority and the Tel Aviv Stock ILCO Group or its business results. Exchange, the information recorded in such official reports shall prevail. 2
Our Main Messages Expanding our portfolio by developing a top-notch Striving to combine between global investment vehicle companies and Israeli technologies and innovation Create a new strategic pillar in the long term Managing a balanced portfolio while maximizing value to shareholders Our global presence and capabilities position Our main investment sector focus will be Food ILCO to create significant value in both (Tech), Agri (Tech), Healthcare and Industry 4.0 European and Israeli investments Investing in sectors that ride on the global Team with Multinational & Multi industry megatrends, are adjacent to the group activities, expertise alongside experience with complex and are complementary with the team expertise business processes Access to a diverse group of key opinion leaders in the different sectors 3
Overview Israel Corp ( “ ILCO ” ) ILCO intends to invest During the last few has decided to between $350-500 months ILCO team and update its strategy million in building its board conducted and become an active portfolio gradually multiple sessions to investment firm, by over time define its new building a balanced investment strategy portfolio together with international and local consultants 4
Plan Guiding Principles Building and Strive to combine Plan of managing a between global balanced portfolio companies and while maximizing Israeli technologies $350- value 500 Avoid investing in No intention to start-up change ILCO net million companies debt over time 5
Israel Corp Wining Aspiration EXPANDING EX EXPANDIN ING ILCO portfolio by • Diversify risk developing a top-notch • Balance ILCO portfolio investment vehicle. Value creation • Create a new strategic pillar will be based on leveraging the GRO ROUP ASS SSETS and ISR SRAELI I GROUP ASSETS UNIQ IQUENESS to significantly • Highly experienced management and global reach improve the acquired companies ’ • Main focus sectors adjacent to current performance. activities ISRAELI UNIQUENESS • “ Roll up strategy ” using the direct access to the vibrant and dynamic innovation ecosystem 6
Initial Investment Thesis Acquir ire a platform Bu Busin iness buil ilding • Established business • Integration of innovation to create • Management disruptive plays: - Product portfolio • Go-to-market capabilities - Expansion to adjacent markets • ‘ Foot on the ground ’ - Improving processes • Infrastructure for growth • Geographical expansion • Other plays 7
Sectors – Main Focus The main focus sectors were chosen by ILCO based on a combination of alignment with global megatrends, and ability to provide technological upside based on the Israeli innovation Agr gri (Te Tech) Fo Food (Te Tech) eco system He Healthcare Indu dustry 4.0 4.0 8
Recent trends are highlighting that three of the target sectors are becoming more inter-connected New co Ne consu sumer Natural & pre preferences: marine Specialty Ingredients Ingredients • Health awareness Contained farming • Conscious eating Food (Tech) Agri (Tech) • On demand availability VMS • Sustainability Health foods & Bio-chemistry nutrition and ‘ natural ’ Driving to convergence of care Food-safety tech. the food, agriculture and Healthcare healthcare industries in many of the sub segments The Industry 4.0 sector corresponds with ILCO substantial experience in the Industry 4.0 industrial eco system 9
Our new investment strategy focuses mainly on sectors with strong connection to the Global Megatrends and with a Technology Potential PwC identifies the most significant underlying drivers that are disrupting the economy, business and society in the world – The Megatrends Shift in global Demographic Technological Rapid Climate change & economic power & social change breakthrough urbanisation resource scarcity The focus of global Explosive population The combination of the The rise in prominence Scarcity of resources growth has shifted. growth in some areas internet, mobile devices, of cities in the global and the impact of Western economic against declines in data analytics and cloud economy. More than climate change. As the dominance is a others, contributes to computing will half of the population world becomes more relatively recent everything from shifts in continue to transform live in urban areas and populous, urbanised historical phenomenon economic power to our world. 1.5 million people are and prosperous, resource scarcity to the added to the global demand for energy, that is waning, and the changes in societal urban population every food and water will rise. developments are norms. week. But the Earth has a essentially a finite amount of natural rebalancing of the resources that can be global economies. used to satisfy this demand. 10
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