Electricity Tariff Update

GCA Financial Targets for Government Companies חברת החשמל Israel Electric Ratios Targets Actual as of 09/30/2023 FFO (1) to adjusted financial debt ratio Short term 11% to 18% 9.8% Long term 15% to 23% FFO (1) plus interest to interest ratio Greater than 3 4.93 Return on capital employed (ROCE) ratio (2) 3.3% in 2023(3) 2.9% 1. Source: IEC's Financial Statements for 9M.2023 and a letter regarding the financial targets for Government Companies, circulated by the GCA on November 17, 2021 and approved by the IEC's Board of Directors. FFO is based on calculation of the EBITDA before normalization while neutralizing the change in liabilities with respect to employee benefits (from cash flow report) and other expenses (revenues), net, less interest and taxes paid (from cash flow report) 2. 3. As part of the calculation of the EBITDA for the four quarters and the ROCE ratio, events originating from the activity of the Company for the entire year of 2022 and following the publication of the annual update on 12.26.22 were neutralized Mid-target of ROCE ratio for 2023 have been updated due to the publication of a new tariff base for the generation segment and due to the annual update for 2023, which includes the deployment of consumer debt to the company for the impact of coal prices over three years and the decrease in the return rate in the generation segment Investor Relations 12

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