INVESTORS

Co-CEO’s letter to Elco’s Shareholders

Dear Shareholders,

Before we dive into the details of the many happy and memorable moments of 2018-2019, we want to pause and commemorate the passing of the man who built this great company, shaped it (and also us) in his own image - our father, Georg Salkind.

Our father joined his father’s business, a manufacturer of small distribution transformers, in 1955. Since he took over the helm and through a series of brilliant mergers and acquisitions, he managed to grow the company as well as to greatly diversify its activities. The result was a transformation from a small local family business to a global conglomerate.

Our father always felt great responsibility towards his employees and partners, and especially to the public shareholders. He was part of the business until his last day and his legacy will continue to live with us and with the company. May he rest in peace.

In 2018-2019, we have continued to strengthen and grow our company in accordance with our core business strategy:

This strategy is not complete without our financial principles:

During the year we focused our attention on improving the operating results of all our businesses including the implementation of far reaching changes in our Cinema business now branded as Hot Cinemas.

Our subsidiary Electra Ltd. completed the acquisition of two contracting companies in the NYC area in a first acquisition bringing the company into the North American market.

Here are some highlights from the strong year enjoyed by our subsidiaries:

Electra Ltd.

The company continued to consolidate its Israeli and international market leadership through various strategic operations in 2019, including:

Electra Consumer Products Ltd.

The largest electrical appliances company in Israel.

Winning in all markets:

Electra Real Estate

On April 22, 2020 ELCO paid its shareholders a dividend in the sum of 37 million NIS

We are committed to continue our hard work to create value for you, our shareholders. We want to thank our devoted employees, across the globe, for the fantastic job they are doing and especially our peers here at the management team at Elco’s HQ. We wish you all a great 2020.

Sincerely,

Daniel & Michael Salkind

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AVI  ISRAELI

Co-Chief Executive Officer, Director

Mr. Avraham Israeli has served as Vice President of Business Development of Elco Holdings Ltd since March 24, 2004. He has served with the Company since January 1, 2000. He received his Bachelor degree in law from the Hebrew University of Jerusalem, his MBA from Insead, France.

AVI  ISRAELI

Co-Chief Executive Officer, Director

Mr. Avraham Israeli has served as Vice President of Business Development of Elco Holdings Ltd since March 24, 2004. He has served with the Company since January 1, 2000. He received his Bachelor degree in law from the Hebrew University of Jerusalem, his MBA from Insead, France.

AVI  ISRAELI

Co-Chief Executive Officer, Director

Mr. Avraham Israeli has served as Vice President of Business Development of Elco Holdings Ltd since March 24, 2004. He has served with the Company since January 1, 2000. He received his Bachelor degree in law from the Hebrew University of Jerusalem, his MBA from Insead, France.

AVI  ISRAELI

Co-Chief Executive Officer, Director

Mr. Avraham Israeli has served as Vice President of Business Development of Elco Holdings Ltd since March 24, 2004. He has served with the Company since January 1, 2000. He received his Bachelor degree in law from the Hebrew University of Jerusalem, his MBA from Insead, France.

AVI  ISRAELI

Co-Chief Executive Officer, Director

Mr. Avraham Israeli has served as Vice President of Business Development of Elco Holdings Ltd since March 24, 2004. He has served with the Company since January 1, 2000. He received his Bachelor degree in law from the Hebrew University of Jerusalem, his MBA from Insead, France.