1

Caesarstone

Company OverviewSeptember, 2018

2

Disclaimer

Written and oral statements made in this presentation and responses to various questions that reflect our

views about our future performance, the Company’s financial position, business strategy and plans and

objectives of management for future operations constitute “forward-looking statements” under the Private

Securities Litigation Reform Act of 1995. These statements, which contain words such as "believe,”

“expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “will,” “may,” “should”, “plan”, “seek” and

similar expressions or references to future periods, reflect the beliefs and expectations of the Company

and are subject to risks and uncertainties, including those described under “Risk factors” in the

Company’s most recent Annual Report on Form 20-F filed with the Securities and Exchange

Commission, that may cause actual results to differ materially from the results discussed in our forward-

looking statements. These risks and uncertainties include, among other factors, but are not limited to the

strength of the home renovation and construction sectors; economic conditions within any of our key

existing markets; actions by our competitors; changes in raw material prices, particularly polymer resins

and pigments; fluctuations in currency exchange rates; the success of our expansion efforts in the United

States; the outcome of silicosis claims and the claim by our former quartz processor; unpredictability of

seasonal fluctuations in revenues; delays in manufacturing and other factors. These and other factors

could adversely affect the outcome and financial effects of the plans and events described herein.

These forward-looking statements are made only as of the date hereof, and neither the Company, nor

any of its respective agents, employees or advisors intend, undertake or have any duty or obligation to

supplement, amend, update or revise any of the forward-looking statements contained in this

presentation, whether as a result of new information, future events or otherwise. The information and

opinions contained in this document are provided as at the date of this presentation and are subject to

change without notice.

This presentation includes certain non-GAAP measures, which should all be considered in addition to,

and not as a substitute for, comparable GAAP measures. A reconciliation of GAAP net income to

adjusted EBITDA and adjusted net income are provided below. The Company provides these non-

GAAP financial measures because it believes that they present a better measure of the Company’s core

business and management uses the non-GAAP measures internally to evaluate the Company’s ongoing

performance. Accordingly, the Company believes that they are useful to investors in enhancing an

understanding of the Company’s operating performance. However these measures should not be

considered as substitutes for GAAP measures and may be inconsistent with similar measures presented

by other companies.

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A Global Leader in the Attractive Quartz Surface Market

1 Source: Freedonia February 2017 study; company market share derived from company volume sales data and Freedonia global market size

3

Caesarstone invented the engineered

quartz countertop;

Solid global distribution platform -

Proven track record of innovation

and sustainable growth

Diversified geographical revenue

A Global market leaderPremium brand, with superior

customer value proposition

World-class capabilities in:

Experienced and motivated

management team

Attractive

financial profile

Caesarstone surfaces are a centrepiece in millions of homes around the world

Product and the market

with ~9% global market share (by volume)1

across over 50 countries

with North America portion of ~58%

Manufacturing, R&D and Marketing

4

New and Energized Management Team

Ophir Yakovian, Chief Financial Officer

Yuval Dagim, Chief Executive Officer

• Mr. Yakovian joined as CFO in 2018

• Nearly 20 years of experience in various financial and leadership roles

• Formerly served as CFO of Lumenis Ltd. (previously NASDAQ: LMNS),

Tnuva Group and Perion Network Ltd. (NASDAQ:PERI)

• Certified Public Accountant

• Mr. Dagim joined as CEO in 2018

• Over 28 years of experience in global business and leadership across

multiple industries, including building materials, consumer and construction

• Successfully spearheaded numerous organizational enhancements and

global business developments at several companies

5

Quartz Is the Fastest Growing Category and Is Still In Its Growth Phase

1 Source: Freedonia February 2017 study; company market share derived from company volume sales data and Freedonia global market size2 Based on Freedonia retail price (end-user consumer installed price, which includes installation and other related costs)

The Quartz Market Opportunity1

2010 2016

Counter-top Material Share 2010 vs.2016

Granite

Quartz 16%

GrowthDevelopment Maturity Dwindling

10%M

ark

et

Sh

are

24%27%

4%

Solid Surface

Laminate

4% Marble

Between 2010 – 2016

Material

Segmentation

(2016 sales)

Engineered

Quartz - 16%

Marble - 4%

Laminates - 10%

Other - 20%

Granite - 27%

Solid Surfaces - 24%

$95B1 Global Counter-top MarketThe market is historically dominated by Granite, Solid Surface & Laminate

Total Counter-top market grew 4.9% CAGR

Quartz Counter-top market grew 17.9% CAGR

Granite 28% 27%

Quartz 7% 16%

Laminate 17% 10%

6

Caesarstone’s Superior Value Proposition

Non Porous

Scratch Resistant

Multi-functional

Easy Fabrication

Flexible

Stain Resistant

Heat Resistant

Impact Resistant

Versatile Designs

Killer application - Superior to any natural stone

Low cost of ownership & Ever lasting beauty

Quartz received the highest overall score

among countertop materials”

Consumer Reports Magazine, USA“

With computers, quartz has supplanted granite

as the people’s choice”

The Washington post, USA “

To me, Caesarstone is where beauty

and function come together”

Mario Batali, Prominent Chef, USA“

Endorsement

You walk into a home and you see the kitchen has Caesarstone

in it. It changes the way you look at the value of that house”

Ty Pennington, TV Personality, USA“

Caesarstone - where creativity meets quality

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A Comprehensive and Lucrative Product Offering

Our wide range

of evergreen colors

and designs

Classico

Hand-incorporated

semi-precious

stones

Concetto

Inspired by the

industrial trend

Proprietary

technology

Supernatural

Inspired by nature

Luxurious marble &

granite designs

Proprietary

technology

P r e m i u m P o s i t i o n i n g

Metropolitan

8

H1'18

Region

Split

Singapore

Israel

Canada

USA

Australia

UK

Leading Global Footprint with Diverse Revenue Mix

CS partners along the value chain

31 Caesarstone Direct Sales in 6 countries (DC & offices)

48 Caesarstone Distributors

relevant in the direct sales market

H1’18

Channels

Split

22% - Australia

41% - USA18% - Canada

7% - Israel

6% - Europe

6% - ROW10%

Indirect

distribution

90%

Direct

distribution

~240 KArchitects & Designers

~18 KKitchen & Bath

~9 KFabricators

~9 KDevelopers/builders

9

2016

2010

85%

52%

39%

13%

Israel Australia Canada U.S.

Positioned to Capture Future Quartz Market expansion

1Source: Freedonia February 2017. Sales figures are based on retail price (end-user consumer installed price, which includes installation and other related costs)2company market share derived from company volume sales data and Freedonia market size in each region

82%

32%

9%5%

87%

45%

24%

14%

Israel Australia Canada U.S.

Quartz Share of Total Countertop Market )By Volume(1

Caesarstone Quartz Countertop

Market Share )By Volume(2

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The U.S. Remains a Significant Opportunity

1HousingEconomics.com – Feb’18 2 Home Improvement Research Institute, September 2013 Source: Freedonia February 2017. Company market share derived from company sales volume data and Fredonia market size4 Calculation applies 1% increase in quartz penetration (by volume) based on 2016 total market volume and 2016 quartz retail prices as provided by Freedonia February 2017 report

1,177k1,286k

2016 2018E

U.S. New Housing Starts1

$327 bn$397 bn

2015 2019E

U.S. Home Improvement Product Sales2

5%

14%

Quartz Share of Countertop Market

2010

2016

U.S. Market Penetration (by volume)3 Caesarstone U.S. Revenue Performance ($mm)

31

6087

123

186

223 223245

2010 2011 2012 2013 2014 2015 2016 2017

21%

9%

42%

50%

YoY organic growth

20%

10%

1% increase

in penetration

≈ $390mm4

(0%)

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World Class Manufacturing and R&D Capabilities

Leading by Innovation

3 Production sites

Caesarstone invented the engineered quartz

countertop

2 in Israel: Sdot Yam and Bar-lev – 5 lines

1 in The US, Richmond hill – 2 lines

Since then, our R&D capabilities have advanced to maintain

the company’s product line at the forefront of the industry

Our technologies, product & colors, have been a role

model to a long list of followers

The company intends to accelerate the investment in

R&D and boost the throughput of its capabilities

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The Surface of Choice in Commercial Properties

A long list of design celebrities have chosen CS for their private residences for ex.:

Tommy Hilfiger | Cher | Alexandra Von Furstenberg

Courtney Cox | Mario Batali | Neal Patrick Harris

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15

Pioneering Innovative Designs

and Technology

15

Color Leadership

Rugged Concrete 4033

1616

Pioneering Innovative Designs

and Colors

Proprietary Technology

Excava 4046

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Pioneering Innovative Designs

and Colors

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A Trend Setter

Cloudburst concrete 4011

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Financial Section

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Growth and Profitability

198.8

259.7296.6

356.6

447.4499.5

538.5588.1

2010 2011 2012 2013 2014 2015 2016 2017

78.3104.3

127.4

162.1

189.7200.2

212.5197.2

39.4% 40.2%43.0% 45.5% 42.4%

40.1% 39.5%33.5%

2010 2011 2012 2013 2014 2015 2016 2017

50.558.8

69.4

91.7

116.6125.7 130.3

100.4

25.4%22.6% 23.4%

25.7% 26.1% 25.2% 24.2%

17.1%

2010 2011 2012 2013 2014 2015 2016 2017

¹ Adjusted net income attributable to controlling interest

29.834.8

44.0

64.0

82.583.7 81.2

49.8

15.0%13.4%

14.8%

17.9% 18.4% 16.8%15.1%

8.5%

2010 2011 2012 2013 2014 2015 2016 2017

Revenue ($mm) Gross Profit and % Margin ($mm)

Adj. EBITDA and % Margin ($mm) Adj. Net Income and % Margin ($mm)1

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Q2’18 Financial Performance

o Primarily reflects the lower gross margin

o CCB – Constant Currency Basis

$148.9M $149.2M

Q2'17 Q2'18

(1.5%) CCB

0.2% $

$51.9M$48.3M

Q2'17 Q2'18

M$

34.9% 32.4%% margin

(6.9%)

$29.6M

$24.6M

Q2'17 Q2'18

19.9% 16.5%

M$

% margin

(16.9%)

0.6% (6.9%) 3.8% (16.2%)o Reduced throughput in Israel

o Inventory and logistical inefficiencies

o Raw materials cost inflation

o Significant improvement in

throughput and yield at RCH

$16.9M$14.6M

Q2'17 Q2'18

0.49$ 0.43$EPS

M$

(13.1%)

Revenue Gross Profit

Adj. EBITDA Adj. Net Income

CCB:

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Caesarstone - Recent Challenges

Two major challenges affecting our performance:

1. Competition and execution – mainly in the US

Increased low cost competition, mainly from China

Internal sales and logistics execution challenges

2. Manufacturing efficiency:

Innovative designs and colors putting more pressure on our

production

Richmond Hill ramp up is longer and more complex than

anticipated

Gross Profit ($mm&%) and Adj EBITDA Margin

Short term key focus areas:

U.S.

Enter and expand Big Box channel

Develop an optimized distribution strategy

Leadership change

Operation

Operations process improvement lead by our new VP

Operation

Richmond Hill – Sep’17 leadership change and know-how

transfer from Israel already showing major positive results

Enhance offering introducing Innovative designs

and colors

42.6

60.0 58.5

51.4 49.2

51.9 49.7

46.3

34.2

48.3

36.5%

42.1%40.5%

38.1%36.1%

34.9%32.1% 31.3%

25.2%

32.4%

19.7%

27.9%26.0%

22.2%

17.8%19.9%

16.5%14.2%

8.2%

16.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

% Adj EBITDA

% GM

22

Caesarstone Cash Flow Supports Future Growth

$5.5 $8.8$13.5

$27.4

$86.4

$76.5

$22.9 $22.7

2010 2011 2012 2013 2014 2015 2016 2017

Capital Expenditure ($mm)

% of

revenue:2.8% 3.4% 4.5% 7.7% 19.3% 15.3% 4.3% 3.8%

$45.0$50.0

$56.0$64.3

$30.2

$49.2

$107.3

$77.7

2010 2011 2012 2013 2014 2015 2016 2017

Adj. EBITDA Less Capital Expenditure ($mm)

% of

revenue:22.6% 19.3% 18.9% 18.0% 6.7% 9.8% 19.9% 13.2%

Flexible capital structure with $104.6M in cash and

short term bank deposits

Caesarstone current cash position and future cash generation

should enable us to accelerate investments in future growth

opportunities, both organically and via potential acquisitions

$40.7

$0.9

-$22.9

$21.6

$48.3

$19.9

$78.2

$38.2

2010 2011 2012 2013 2014 2015 2016 2017

Free Cash Flow ($mm)

2323

CEO Message

Caesarstone was established as a manufacturer – a plant with an innovative superior product.

Over the years, it consolidated its sale’s channels and

developed a desirable premium brand.

To do that, we will need to continue to shift the center of

gravity of the company, from an industrial leader to a world

class commercial organization.

Along this journey, we will need to use our special tools –

innovation, superior service, premium brand ,together with

our experienced and motivated team.

The company will continue to increase the proximity and the

offering to its customers base worldwide.

From Industrial Leader to a World Class Commercial Organization

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Thank You

25

Quarterly Financial Performance

YoY Growth:

‘13-’14 23.5% 30.4% 30.7% 17.4%

‘14-’15 14.2% 9.9% 11.0% 12.1%

‘15-’16 8.4% 11.6% 5.5% 6.0%

’16-’17 16.7% 4.6% 7.2% 9.7%

’17-’18 (0.3%) 0.2%

YoY Growth:

‘13-’14 25.4% 23.3% 42.4% 16.1%

‘14-’15 15.3% 10.4% 0.8% 8.2%

‘15-’16 (9.8%) 18.7% 3.6% (1.5%)

’16-’17 5.5% (25.5%) (31.8%) (30.0%)

’17-’18 (53.8%) (16.9%)

2014 2015 2016 2017 2018

- Solid and growing Adjusted EBITDA through 2016

- Experiencing significant margin erosion since Q2’17 primarily related to

manufacturing performance, raw materials prices and strategic M&S investments

in the U.S and UK

- Commenced counter-measures to improve manufacturing performance

Consistent year-over-year revenue growth across quarters through 2017

Adj. EBITDA ($mm)

22.1

30.4

35.9

28.1

25.5

33.5 3

6.2

30.4

23.0

39.8

37.5

30.0

24.3

29.6

25.6

21.0

11.2

24.6

Q1 Q2 Q3 Q4

Revenue ($mm)94.4

116.1

123.3

113.6

107.8

127.5

136.8

127.4

116.9

142.3

144.3

135.0

136.4 148.9

154.7

148.1

136.1 149.2

Q1 Q2 Q3 Q4

Industry characterized by seasonality with strong Q3 and weaker Q1 annually

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Adjusted EBITDA Reconciliation

(1) Consists of legal settlements expenses and loss contingencies, net, in 2017 related primarily to Kfar Giladi arbitration, as well as to product liability claims and other adjustments to on-going legal claims.

(2) One time bonus paid by a shareholder to Company's employees.

(3) Consists of charges to cost of goods sold for the difference between the higher carrying cost of the inventory of two of the Company's subsidiaries- Caesarstone USA's inventory at the time of its acquisition and inventory that was purchased from its

distributor and Caesarstone Australia Pty Limited's inventory that was purchased from its distributor, and the standard cost of the Company's inventory- which adversely impacts the Company's gross margins until such inventory is sold. The majority

of the inventory acquired from Caesarstone USA was sold in 2011, and the majority of the inventory acquired from the Australian distributor was sold in 2012.

(4) Share-based compensation includes expenses related to stock options and restricted stock units granted to employees of the Company. In addition, includes expenses for phantom awards granted and related payroll expenses as a result of

exercises.

(5) Consists of direct expenses related to a follow-on offering that closed in June 2014.

(6) Relates to an adjustment of provision for taxable employee fringe benefits as a result of a settlement with the Israel Tax Authority and with the National Insurance Institute of Israel.

USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A

Net Income $29,006 $29,304 $40,367 $64,353 $80,256 $79,458 $76,483 $27,558

Interest Expense, net $2,370 $4,775 $2,773 $1,314 $1,048 $3,085 $3,318 $5,583

Taxes on income $7,399 $3,600 $6,821 $10,336 $13,738 $13,843 $13,003 $7,402

Depreciation and Amortization $10,034 $14,615 $14,368 $14,994 $17,176 $22,334 $28,254 $29,926

Legal settlements and loss contingencies (1) $4,654 $5,868 $24,797

Equity in losses of affiliate, net -$296 -$67

Minority Share in Canada (45%) $348 $252

Adj.EBITDA $49,105 $52,361 $64,329 $90,997 $112,218 $123,374 $126,926

% of sale $0 $0 $0 $0 $0 $0

Compensation paid by a shareholder (2) $266

Excess cost of acquired inventory (3) $4,021 $885 $188 $231

Share-based compensation expense (4) $1,384 $1,259 $3,007 $2,514 $2,642 $2,293 $3,068 $5,277

Inventory - change of estimate -$3,458 $0

Follow-on expenses (5) $1,470 $657

IPO bonus $1,970

Caesarstone USA contingent consideration adjustment $255

Litigation gain -$1,783 -$1,001

Microgil loan and inventory write down $2,916

Provision for employees fringe benefits (6) $939 -$114

Settlement with the tax authorities -$134

Adjusted EBITDA $50,489 $58,774 $69,445 $91,711 $116,553 $125,667 $130,260 $100,429

% of sale 25.4% 22.6% 23.4% 25.7% 26.1% 25.2% 24.2% 17.1%

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(1) Consists of legal settlements expenses and loss contingencies, net, in 2017 related primarily to Kfar Giladi arbitration, as well as to product liability claims and other One time bonus paid by a shareholder to Company's employees.

(2) Consists of charges to cost of goods sold for the difference between the higher carrying cost of the inventory of two of the Company's subsidiaries- Caesarstone USA's inventory at the time of its acquisition and inventory that was purchased from its

distributor and Caesarstone Australia Pty Limited's inventory that was purchased from its distributor, and the standard cost of the Company's inventory- which adversely impacts the Company's gross margins until such inventory is sold. The majority

of the inventory acquired from Caesarstone USA was sold in 2011, and the majority of the inventory acquired from the Australian distributor was sold in 2012.

(3) Share-based compensation includes expenses related to stock options and restricted stock units granted to employees of the Company. In addition, includes expenses for phantom awards granted and related payroll expenses as a result of

exercises.

(4) Consists of direct expenses related to a follow-on offering that closed in June 2014.

(5) Relates to an adjustment of provision for taxable employee fringe benefits as a result of a settlement with the Israel Tax Authority and with the National Insurance Institute of Israel.

(6) Relates to an adjustment of provision for taxable employee fringe benefits as a result of a settlement with the Israeli Tax Authority and with the National Insurance Intitute of Israel.

(7) Tax adjustments for the three and twelve months ended December 31, 2017 and 2016 were based on the effective tax rates for these periods, respectively.

Adjusted Net Income Attributable to Controlling Interest Reconciliation

USD (0,000) 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A

Net income attributable to controlling interest $28,658 $29,052 $39,632 $63,344 $78,436 $77,766 $74,596 $26,202

Legal settlements and loss contingencies (1) $4,654 $5,868 $24,797

Compensation paid by a shareholder (2) $266

Excess cost of acquired inventory (3) $4,021 $885 $188 $231

Share-based compensation expense (4) $1,384 $1,259 $3,007 $2,514 $2,642 $2,293 $3,068 $5,277

IPO bonus $1,970

Caesarstone USA contingent consideration adjustment $255

Inventory - change of estimate -$3,458 $0

Follow-on expenses (5) $1,470 $657

Litigation gain -$1,783 -$1,001

Microgil loan and inventory write down $2,916

Provision for employees fringe benefits (6) 939.25 -$114

Settlement with the tax authorities -134.20

Tax adjustment (7) 342.00 -$1,158

Total adjustments before tax $1,384 $6,413 $5,116 $714 $4,677 $6,947 $8,044 $29,960

Less tax on above adjustments (8) $279 $700 $740 $99 $618 $1,031 $1,456 $6,343

Total adjustments after tax $1,105 $5,713 $4,376 $615 $4,059 $5,916 $6,588 $23,617

Adjusted Net Income $29,763 $34,765 $44,008 $63,959 $82,495 $83,682 $81,184 $49,819

% of sales 15.0% 13.4% 14.8% 17.9% 18.4% 16.8% 15.1% 8.5%