Max Stock : Investors Presentation - Q2 2023

Max Stock Q2'23 Earnings Conference Call

August 15, 2023

Disclaimer

This presentation, any question and answer session and any written or oral material discussed or distributed during the meeting to present this document or otherwise in connection with it (this "Presentation") is solely for the purpose of demonstration of information included in the financial statements of MAX Stock Ltd. ("MAX" or "the Company") as of June 30th, 2023. This Presentation is not intended for distribution to, or use by any person or entity in, any jurisdiction or country where such distribution or use would be contrary to local law or regulation. This Presentation was prepared solely based on information obtained from MAX and public sources (including data obtained by MAX from industry publications and surveys) on or prior to the date hereof and has not been independently verified. MAX may not have access to the facts and assumptions underlying the numerical data, market data and other information included in such surveys . This Presentation only contains summary information and no representation or warranty, express or implied, is or will be made in relation to and no reliance should be placed on the fairness, accuracy, correctness or completeness of the information or opinions contained in this Presentation. The presentation only contains summary information, and does not replace the full disclosure contained in the Q2 2023 Financial Statements and in 2022 annual report of the Company.

This Presentation contains forward-looking statements, which are based on current expectations, projections and assumptions about future events and may differ materially from actual results due to variety of factors including, but not limited to change in the overall economy; and on local and global economy and MAX's ability to manage and develop its business. Statements contained in the Presentation, other than statements of historical fact, regarding future events or prospects, are forward-looking statements. These forward-looking statements can be identified by the use of words such as "aim," "anticipate," "believe," "continues," "could," "estimate," "expect," "intend," "goal," "may," "plan," "project," "projections," "should," "will" and other words that convey uncertainty of future events or outcome. Statements that MAX makes in this Presentation that are not statements of historical fact also may be forward-looking statements. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties, and assumptions that may cause our actual results to differ materially from the expectations that MAX describes in its forward-looking statements. There may be events in the future that MAX is not accurately able to predict, or over which MAX has no control. You should not place undue reliance on forward-looking statements. Although MAX may elect to update forward-looking statements in the future, MAX disclaims any obligation to do so, even if MAX's assumptions and projections change, except where applicable law may otherwise require MAX to do so. These forward-looking statements should not be relied upon as representing MAX's views as of any date subsequent to the date of this Presentation.

This Presentation does not constitute and is not intended to form part of any offer, or the solicitation of any offer, to buy, subscribe for or sell any securities in MAX or any subsidiary of MAX and nothing in this Presentation shall in any way constitute or form part of any legal agreement or be relied on in connection with, any contract, commitment or investment decision. Each recipient of the information contained in this Presentation is responsible for making its own independent assessment of the business, financial condition, prospects, status and affairs of MAX. No person shall have any right of action against MAX or any other person in relation to the accuracy or completeness of the information contained in the Presentation.

This Presentation and the information contained herein are not a solicitation of an offer to buy securities or an offer for the sale of securities in Israel, in the United States or in any other jurisdiction in which such solicitation or offer are not allowed. MAX has not and does not expect to register any securities that it may offer under the Securities Act, or the securities laws of any state of the United States or any other jurisdiction thereof, and any such securities may not be offered or sold in the United States absent registration under the Securities Act or an available exemption from registration.

Nothing in this Presentation constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient.

By attending this Presentation and/or receiving this document, you are agreeing to the terms and conditions set forth above.

This presentation includes certain financial measures not presented in accordance with International Financial Reporting Standards ("IFRS"), including Adjusted EBITDA. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to net loss or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company's presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure.

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Financial

Highlights

and KPIs

Updates

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Q2 2023 Financial Highlights

• Flat revenue, driven by negative SSSG of 2.8% from a shift in the timing of Passover that positively impacted Q1 this year (and Q2 last year). SSSG for May - June 2023 (no holiday timing impact) = 3.9%
• Robust gross margins primarily reflecting efficient management of inventory and continued moderation of global shipping costs
• 46.5% increase in GAAP net income attributable to shareholders, also reflecting a decline in SBC expenses this year; 4.9% growth in adjusted net income attributable to shareholders

NIS 252.8M -2.8%

41.2%

NIS 30.1M

NIS15.9M

Revenue	SSSG
▪ Flat vs. Q2'2022	SSSG for May &
	June 2023 vs. last
	year = 3.9%

Gross Margins	Adjusted EBITDA
	Pre IFRS 16
▪ Gross Profit: NIS 104.0M	▪	Up 2.6% vs. Q2'2022
▪ Up 4.9% vs. Q2'2022	▪	11.9% of Revenue (up
▪ Up 190 bps vs. Q2'2022		30bps vs. Q2'2022)
▪	Adjusted EBITDA Pre
		IFRS 16 excluding
		Portugal: NIS 31.8
		(12.7% of Revenue
		exc. Portugal)

Adjusted Net Income

attributable to shareholders

▪ Up 4.9% vs. Q2'2022

▪ 6.3% of Revenue (up 30 bps vs. Q2'2022)

▪ Adj. EPS attributable to shareholders: NIS 0.11, up 7.2% vs. Q2'22

• Adj. EPS attributable to shareholders excluding Portugal: NIS 0.12, up 16.5% vs. Q2'22

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H1 2023 Financial Highlights

• Revenue grew 5.7%, driven primairly by strong store traffic
• Robust gross margins primarily reflecting efficient management of inventory and continued moderation of global shipping costs
• 48.4% increase in GAAP net income attributable to shareholders; 11.8% growth in adjusted net income attributable to shareholders

NIS 532.4M +3.0%

41.3%

NIS 66.9M

NIS36.9M

Revenue	SSSG	Gross Margins
▪ Up 5.7% vs.	▪ Driven primarily	▪	Gross Profit: NIS
H1'2022	by volume growth		219.8M
		▪	Up 11.6% vs.
			H1'2022

▪ Up 220 bps vs. H1'2022

Adjusted EBITDA

Pre IFRS 16

• Up 9.3% vs. H1'2022
• 12.6% of Revenue (up 40bps vs. H1'2022)
• Adjusted EBITDA Pre IFRS 16 excluding
  Portugal: NIS 69.5M (13.1% of Revenue exc. Portugal)

Adjusted Net Income

attributable to shareholders

▪ Up 11.8% vs. H1'2022

▪ 6.9% of Revenue (up 40bps vs. H1'2022)

▪ Adj. EPS attributable to shareholders: NIS 0.27, up 14.3% vs. H1'22

• Adj. EPS attributable to shareholders excluding Portugal: NIS 0.28, up 10.4% vs. H1'22

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