Chairman’s Statement

I am proud of the progress we made in 2024, despite a challenging macroeconomic environment. We took significant steps in aligning our business with the refreshed strategic vision introduced in June 2023, achieving key operational milestones across our core divisions. While our Networking division faced ongoing challenges in the telecommunications industry, strong growth in our Cyber and Diagnostics divisions contributed to an overall increase in total revenue.

Our strategy is to build a high-tech enterprise specialising in cybersecurity, telecommunication networking and medical diagnostics. By leveraging synergies across these areas, we strengthened our business model. In late 2023, we began establishing Group-wide corporate functions, which accelerated in 2024 with the appointment of a Chief Operating Officer, Chief Marketing Officer and Head of Diagnostics Division. We also emphasised cross-selling opportunities, culminating in our first joint conference under the BATM brand, successfully integrating our networking and cyber expertise.

At BATM, we recognise that our people are our greatest asset. Fostering an enterprise culture is vital to our success, and throughout 2024, we enhanced communication, collaboration and team connectivity — an initiative we plan to expand significantly in 2025.

To reinforce our core divisions, we implemented a management reorganisation and a new go-to-market strategy in both Networking and Diagnostics, alongside an expansion of the Networking division's sales team. Though early, these initiatives are already yielding positive results.

We continue to explore M&A opportunities as a key avenue for accelerating growth and look forward to sharing further developments in due course. Simultaneously, we focused on divesting non-core businesses. This led to an agreement, post year-end, to sell our entire shareholding in Progenetics Ltd. We also prepared our eco-med operation for sale, with a contingency plan to close the business if a sale does not materialise in 2025. These divestments enable us to concentrate resources on high-growth areas.

One of our most significant commercial achievements was advancing our Cyber division's cutting-edge encryption platform toward entry into the commercial markets. This long-standing strategic goal expands our addressable market considerably. In 2024, we secured a distribution agreement with a strategic partner and developed a customised version of the platform, with the first units set for delivery in the first half of the current year. Notably, our encryption platform is quantum key distribution-ready, positioning BATM at the forefront of post-quantum security solutions - a transformational opportunity for our business.

Our Board was further strengthened with the appointment of Dr. Shmuel (Muli) Ben Zvi as a Non-Executive Director. Dr. Ben Zvi brings extensive leadership experience from both public and private sectors, including his tenure as a director of Bank Leumi, Israel’s largest banking corporation, where he served as Chairman in his final year. His expertise will be an invaluable asset to BATM.

On behalf of the Board, I would like to express my gratitude to our dedicated team at BATM, our senior executives and our CEO Mr Moti Nagar, as well as our shareholders and other stakeholders for their continued support. While 2024 presented challenges, we made tremendous strides in executing our strategy and positioning BATM for sustainable, profitable growth. I look forward to updating you on our ongoing progress.

Dr. Gideon Chitayat
Chairman
08 April 2025