Key Investment Highlights

Progress in implementation of the electricity sector reform and structural change - cont. חברת החשמל Israel Electric Construction of new CCGT units 70-80 at Orot Rabin site Due to the "Iron Swords" war and the evacuation of GE workers and its subcontractors from the country, the commercial operation date of unit 70 will be postponed to a new date, at least 4 months after the return of all required foreign experts to Israel, and not before May 2024. There is no expected date of the commercial operation of Unit 80. On August 11, 2023, the first ignition of unit 70 was carried out in preparation for synchronizing the unit to the electricity grid. As of September 30, 2023, a total of NIS 3.9 billion was invested in the establishment of the two new CCGT units in Orot Rabin. Converting coal units to NG usage " On May 18, 2023, the company's BOD decided to continue the conversion project of units 1-2 in Rotenberg site only, and to suspend the conversion of units 5-6 in Orot Rabin site. On June 2023, the company's BOD decided to continue the procurement process for converting units 3-4 in Rotenberg site. On August 9, 2023, a gas fire was ignited in Unit 1 in Rotenberg site as part of the system operation tests, prior to the completion of the conversion process. Unit 1 will not complete the conversion operation at the expected date following the stop of the work on the site and the failure to reach the supplier's experts to Israel. Compellation date of the conversion project cannot be estimated. The Company is in ongoing discussions with the Ministry of Energy and the Electricity Authority to fully complete the project. The Company Management's estimate is that after exhausting the discussions with all the authorized State Authorities, the chances of executing the conversion in full (i.e. to all the 6 coal-fired units in the project) outweigh the chances that the conversion will not be executed in full, and the chances of recognizing the full cost of the project outweigh the chances that these will not be recognized. Source: IEC's Financial Statements for 2022FY and for 9M.2023 Investor Relations 15

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