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• Adjusted EBITDA in 2022 amounted to 136.5 million ILS (112.5 million ILS before the implementation of IFRS16), representing a 14% increase compared to last year.

• The gross profit in 2022 amounted to 176.1 million ILS, an increase of 18% compared to the previous year's gross profit.

• The operating profit in 2022 amounted to 78.8 million ILS, an increase of 13% compared to the previous year's operating profit.

• The net profit in 2022 amounted to 51.4 million ILS, an increase of 15% compared to the previous year's net profit.

• The cash flow from operating activities in 2022 amounted to 132.6 million ILS, an increase of 59% compared to the previous year.

Eran Taus, CEO of Novolog: "We are pleased to conclude another successful year, marked by growth in all parameters: revenue, profit, and cash flow from operating activities. Along with organic growth, we have made two strategic acquisitions this year: Ein Tal Center, a company specializing in ophthalmology, and Gsap company, which provides services to biomed companies in the areas of regulation, clinical trials, and compliance with quality standards. These acquisitions were consolidated in the reports, but their main impact on the company's results will be reflected over the coming quarters. Furthermore, we recently completed the acquisition of Pronto, a company that operates in the field of molecular genetic diagnostics.

These acquisitions enable us to expand our products portfolio and maintain and strengthen our leading position in the field of pharma and medical services. These purchases are part of the company's strategy to become a leading health group while maintaining robust financial stability.

In addition, and in response to customers' needs, Novolog has established a new logistics center and is developing a unique marketplace that connects end customers with private doctors and service providers in the healthcare industry. Our goal is to provide an advanced treatment experience and enhance the availability of our services to our customers.

We are proud to maintain a dividend policy and distribute 70% of our profits to shareholders while striving for continued growth and value creation. We remain committed to this goal and will continue to act accordingly."

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Key results for 2022:

The group's revenues in 2022 were 1,507.9 million ILS, representing a growth of 20% compared to last year's 1,255.2 million ILS. The increase in revenues is attributed to revenue growth in all business divisions, along with the consolidation of the financial results of Ein Tal and Gsap, effective from the first quarter of 2022 and September 2022, respectively.

The gross profit for 2022 amounted to 176.1 million ILS, an increase of 18% compared to last year's 149 million ILS. The gross profit rate in 2022 is estimated at 12% of total revenues, similar to last year.

The operating profit in 2022 reached 78.8 million ILS, an increase of 13% compared to 69.9 million ILS last year.

The net profit in 2022 amounted to 51.4 million ILS, representing a growth of 15% compared to last year's 44.8 million ILS.

The adjusted EBITDA for 2022 reached 136.5 million ILS, an increase of 14% compared to last year's 119.3 million ILS.

The cash flow from current operations amounted to 132.6 million ILS in 2022, representing an increase of 59% compared to last year's 83.4 million ILS.

The group's total cash balances in 2022 amounted to 172.8 million ILS.

As of December 31, 2022, the company's equity is 462 million ILS, which constitutes approximately 19% of the total balance.

The company announces the distribution of a dividend in the amount of 16.9 million ILS, in accordance with the company's dividend distribution policy to distribute 70% of the net profit.

‍Logistics Division

Division's net sales in 2022 reached 1,281.7 million ILS, an increase of 17% compared to last year's net sales.

The operating profit in 2022 amounted to 53.9 million ILS, an increase of 25% compared to the previous year's operating profit.

Healthcare Division

Net sales for 2022 reached 201.9 million ILS, an increase of 43% compared to last year's net sales.

The operating profit for 2022 amounted to 15.2 million ILS, a decrease of 19% compared to the previous year's operating profit.

Digital Division

Net sales in 2022 amounted to 26 million ILS, an increase of 1% compared to last year's net sales.

The operating profit for 2022 remained steady at 5.5 million ILS, the same amount as the previous year's operating profit.

About Novolog Group

Novolog is an Israeli healthcare services group founded in 1966. Currently the group employs more than 1,000 employees, and its shares have been traded on the Tel-Aviv Stock Exchange under the ticker NVLG since 2017

The Group operates with the goal of improving the field of healthcare in Israel and adapting it to the challenges of the future through three key segments:

Logistics Division – The logistics division is a leading strategic partner for multinational pharmaceutical and medical equipment companies operating in Israel. Novolog operates a variety of complementary services to these companies in the fields of pharmaceuticals, medical equipment, and clinical trials.

Healthcare Division – Our healthcare division provides accessible medical services to institutional and private clients across a variety of fields. We strive to make healthcare more accessible and convenient for our clients, while maintaining the highest standards of quality and safety. Novolog offers a range of specialized services, including diagnostics, treatments, and personalized healthcare based on innovative technologies.

Digital Division – Provides access to medical information and technological services in the digital arena for patients, physicians, and medical institutions.

http://www.novolog.co.il

https://il.linkedin.com/company/novolog

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