• The operating profit increased by 5.5% to NIS 21.6 million.

• Adjusted EBITDA amounted to NIS 34.2 million, similar to the quarter last year.

• Revenues in the first quarter grew by 10% to NIS 413 million compared to the quarter last year.

• The company recorded a provision of NIS 23.2 million for the decrease in the value of the investment in Medflex.

• The Cash flow from operating activities in the first quarter was NIS 33.5 million, compared to NIS 21.5 million in the corresponding quarter last year.

Novolog experienced growth in the first quarter of 2023. However, profitability was affected by a decrease in the activity of health services compared to the corresponding quarter, mainly due to reduced activity in laboratory services and changes in the competitive environment of respirators. During this period, Novolog expanded the storage and production capacity of its logistics division and completed the construction of an advanced logistics center adjacent to the existing one. The new center has started operating and will support the company's expansion into new activities, leading to increased revenue and profit in the coming quarters.

Recently, Novolog announced a provision for impairment of its investment in Medflex, as it explores additional funding sources for the company. This investment does not impact Novolog's other activities or the group's financial stability. Novolog remains committed to offering a wide range of products to its customers, maintaining and strengthening its position in the field of services for multinational pharmaceutical companies and providing health services to patients at home and in the community while delivering value to shareholders.

Revenues: NIS 413 million, a 10% increase compared to NIS 375 million in the corresponding quarter last year. The increase is mainly attributed to higher revenues from the logistics division, consolidation of financial results from Pronto and Gsap (around NIS 15 million), and reduced laboratory services due to the completion of a corona vaccine project.

Gross Profit: NIS 47.5 million, a 9.8% increase compared to NIS 43.2 million in the corresponding quarter last year.

Operating Profit: NIS 21.6 million, a 5.5% increase compared to NIS 20.4 million in the corresponding quarter last year.

Adjusted EBITDA: NIS 34.2 million, similar to the corresponding quarter last year.

Profit after Taxes: NIS 15.8 million, a 14.5% increase compared to NIS 13.8 million in the corresponding quarter last year.

Net Loss: NIS 8.8 million, compared to a net profit of NIS 13 million in the corresponding quarter last year, following the provision for the decrease in value of the investment in Medflex.

Cash flow from operating activities: NIS 33.5 million, a 56% increase compared to NIS 21.5 million in the corresponding quarter last year.

Cash Balance: NIS 172 million at the end of the first quarter of 2023, without debt.

Segment Reporting (excluding IFRS 16, millions of NIS):

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About Novolog Group:

Novolog Group is a company that specializes in providing health services. It was established in 1966 and currently employs around 1,000 people. The company's shares have been traded on the Tel Aviv Stock Exchange since 2017. Novolog operates through three divisions:

The logistics division: Offers comprehensive logistics services and complementary services in the field of medicines, medical equipment, and clinical trials.

The health services division: Provides accessible medical services to institutional and private clients in various fields.

The digital division: Makes medical information and services accessible to patients and doctors, as well as manages doctors' diaries digitally.

For more information, you can visit Novolog's website at http://www.novolog.co.il or their LinkedIn page at https://il.linkedin.com/company/novolog.

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