MAGAL SECURITY SYSTEMS

Focused Solutions for the World’s Security Needs Kobi Vinokur, CFO

March 20201

/ SAFE HARBOR/

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Statements concerning Magal Security’s business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements.

These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions affecting Magal Security’s industry and target markets in particular; shifts in supply and demand; market acceptance of new products and continuing products' demand; the impact of competitive products and pricing on Magal Security’s and its customers' products and markets; timely product and technology development/upgrades and the ability to manage changes in market conditions as needed; the integration of acquired companies, their products and operations into Magal Security’s business; and other factors detailed in Magal Security’s filings with the Securities and Exchange Commission. Magal Security assumes no obligation to update the information in this release.

Estimated growth rates and other predictive statements represent Magal Security’s assumptions and expectations in light of currently available information. Estimated growth rates and other predictive statements, are based on industry trends, circumstances involving clients and other factors, and they involve risks, variables and uncertainties. Magal Security’s actual performance results may differ from those indicated in this presentation. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein.

In addition, there is uncertainty about the spread of the COVID19 virus and the impact it will have on the Company’s operations, the demand for Company’s products, global supply chains and economic activity in general.

/ MAGAL AT A GLANCE /

• Leader in customized security products and turnkey solutions with decades of experience

• Growing presence with focus on key vertical markets

• Two operating divisions

• Magal Security global provider of turnkey projects

• Senstar recognized tech-rich product brand

• Scalable model – near-term goal to increase revenue by 50% and increase EBITDA margin from 9% to 14%

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* Financial metrics reflect calendar year as of 12/31/2019

2019 Total Revenue: $86.8M

Projects60%

Products40%

Recurring Revenue

~20%

Market Cap: $58M

Net Cash$51m

EnterpriseValue$11m

7% of revenues spent on R&D

R&D & Technicians

175

TotalEmployees

420

Technology Focus

22%

22%

23%

9%

13%

11%

Global PresenceIsrael

Europe

North America

South and Latin America

Africa

Others

/ MAGAL DELIVERS SOLUTIONS IN HIGHEST GROWTH SEGMENT /

Security is a Global Problem Projected to Grow at a CAGR of 10% to Over $526 Billion by 2026*

Industry Growth Drivers

• Increasing security threats to infrastructure and populations

• Increasing government regulation to fight terrorism

• Rising labor costs driving tech-based solutions

Magal operates in one of the highest growth market segments - physical security to safeguard people, places and materials

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Remote Monitoring

VMS Video Surveillance

System Integration

Electronic Access Control

* Source: Verified Market Research, Global Security Solutions Market report October 2018

Perimeter Intrusion Detection Systems

VMSVideo Analytics

Symphony

Volumetric SensorXField

Covert SensorOmniTrax

Fence Mounted Sensor

FlexZone / FiberPatrol

Microwave Sensor

UIltraWave

Intelligent Lighting / Fence Sensor

Senstar LM100

/ CORE MAGAL MARKET - PERIMETER INTRUSION PROTECTION /

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VMSVideo Analytics

Symphony

Protecting Critical Infrastructure While Meeting Operational and Regulatory Requirements

Command and Control FORTIS

Electronic Access Control

EAC

// TARGETING KEY VERTICAL MARKETS

SEAPORTSVIP SITESMILITARY FACILITIES SMART CITY

REGULATED CANNABIS

BORDERSAIRPORT

SAFE CITY

OIL & GAS

LOGISTICS

CORRECTIONS

CRITICALINFRASTRUCTURE

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Characteristics

Have unique security requirements suited to Magal’s capabilities

• Vulnerable - readily accessible to public

• Increasingly use tech-centric products

• Require tailored solutions

/ MAGAL’S TWO OPERATING DIVISIONS/

Product division – tech-rich, proprietary • Perimeter intrusion detection systems (PIDS)• Advanced Video Management Software (VMS)• Intelligent Video Analytics (IVA)• Electronic Access Control (EACS)• Symphony - security and information

management platform

• Sells to system integrators and distribution channels

• Fastest growing division with highest contribution margins

Project division - turnkey security projects globally• Perimeter intrusion protection for critical

infrastructure security• Comprehensive solutions offering• Leverages Magal/Senstar’s full suite of products • Features proprietary Fortis 4G Command &

Control platform

• Global sales directly to end users or to large-scale contractors

• Large, variable sales to defined customer base with high barriers to entry

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~40% of Revenues

~60% ofrevenues

/ GLOBAL FOOTPRINT TO SUPPORT OPERATIONS /

Israel / Yehud

Corporate HQ & Magal Israel Projects

Canada / Ottawa & Waterloo

PIDS & VMS R&D Centers

Manufacturing

Mexico / Cuernavaca

Projects and Products

United States / Philadelphia

Fiber Optic Technologies R&D Center

Philippines / Clark

Technical support center

Germany/ Ravensburg and Hanau

Product distribution - Europe

/MAIN FACILITIES/

TWO OPERATING DIVISIONS SUPPORTED GLOBALLY

Security products under the Senstar brand

Security solutions and turnkey projects under the Magal brand

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/ PROJECT DIVISION - CORE COMPETENCIES /

Turnkey Security Projects For Governments And Enterprises

• Comprehensive offering

• Recurring revenue from maintenance, support and training

• Customized solutions capabilities

Consulting

Design

Integration

Project Management & Supervision

Installation

Maintenance, Support & Training

Analyze and identify security concerns

New projects or existing system upgrades or

replacements

Full-service systems integrator

Manage every stage through completion

Over 50 years installation experience

Full suite of support options

Core Project Division

Competencies

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/ PROJECT DIVISION – PROPRIETARY INTERGATED SOLUTIONS/

External Data

Cyber Security

Public Address

IVA & LPR

Robots & Balloons

CCTV/Cameras

Facial Recognition

Thermal Imaging

Perimeter Systems

Mobile Forces

Smart Gates

Access Control

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FORTIS Proprietary Command and Control

• Centralized proprietary Physical Security Information Management (PSIM) monitoring

• Holistic integrations for all security and operational systems

• Vendor agnostic

• Effective decision making on real-time events

• Future delivery as cloud solution

Drones and Anti-drone

Integrated by FORTIS 4G

Project division executes construction and installation

using sensors and tech-rich products

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/ PROJECT DIVISON DELIVERS COMPREHENSIVE EFFECTIVE SOLUTIONS /

/ SENSTAR PRODUCTS LEVERAGING CORE EXPERTISE TO NEW MARKETS /

Recognized Brand Leader in Security Products

• Ranked one of 2019’s top 10 growth brands in global physical security sector *

Competitive advantages – performance, reliability and quality

IP-rich Proprietary Technology

• 24 issued patents and 8 patents pending

• Annual R&D investment of ~$5.5 million

Expanded addressable market with ESC and VMS acquisitions (2018, 2016)

Cross-selling drives growth

EACSElectronic

Access Control

$7.5B

VMSVideo

Management

$3.7B

Source: Markets & Markets, June 2018

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* ASMAG.com 2019 a&s Security 50 December 2019

PIDS$550 M

/ SENSTAR’S INTRUSION DETECTION FOR UNIQUE SECURITY NEEDS /

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Challenge – Secure a five-mile airport perimeter subject to harsh weather conditions and surrounded by busy roads, pedestrian traffic and public transportation

Solution – Multilayered Perimeter Intrusion Detection

Technology

• Fiber optic fence-mounted and buried intrusion detection systems

• Senstar’s Network Manager software to manage alarms from the multiple systems

Outcome – High praise for Senstar’s solution with improved security through improved system management and lower cost with reduced nuisance alarm rate (NAR)

Perimeter security requirements for a critical cargo airport in North American …

…where traditional PIDS and video surveillance proved ineffective, expensive and unmanageable

Case Study

/ PRIORITIZING RESOURCES ON FOUR KEY VERTICALS FOR 2020/

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• Rapid growth of security needs in these verticals benefit Product and Project divisions

• Able to leverage core capabilities, market leadership, new products and high standards

• Investing in BD and Sales; targeting for M&A opportunities

CRITICALINFRASTRUCTURE

Core vertical for product division with PIDS

CORRECTIONS

Market leader in the U.S. with momentum to increase market share

LOGISTICS

High growth industry for new operational needs - VMS analytics for logistics to track damaged good, and reduce lost items

OIL & GAS

Magal’s differentiated capabilities and high standards of quality for security align with this capital-intensive sector’s unique needs

/ EXECUTING A STRATEGY TO DRIVE GROWTH /

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Growth Drivers• 2020 focus on growth in key verticals

• Selling core security solutions and products

• Augmenting with adjacent solutions and products

• Continued focus on increasing Senstarrevenue as a percentage of total revenue

• Division has delivered consecutive annual growth past three years

• Scalable revenue with higher margin contribution

• Higher level of investment in R&D• Driver of corporate EBITDA growth

Divisional Revenue and Margin Breakdown

$28.5 $34.9 $36.6$38.2 $61.0

$52.4

2017 2018 2019

Divisional Revenue2017 - 2019($ in millions)

Not including divisional eliminations

Senstar Product Division Magal Integration Division

2019 Combined Senstar (*) Magal (*)

R&D 7% 14% 2%

Gross Margin 45% 63% 32%

EBITDA Margin 9% 14% 8%

(*) Divisional Contribution

$0.6

$7.0

$8.1

2017 2018 2019

EBITDA & EBITDA Margin1

($ in millions)

7.5%

1.0%

9.4%

$32.6 $36.5 $32.7

$64.3

$92.6$86.8

2017 2018 2019

Revenues & Operating Expense($ in millions)

/ OPERATING LEVERAGE DRIVES CASH FLOW TO SUPPORT GROWTH /

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OPEX($ in millions)

• Revenue growing faster than expenses

• $51.6 million in net cash on balance sheet as of December 31, 2019

• $24 million raised in 2016; currently generating cash

• Primary targeted use of cash to acquire new technology, expand geographic presence, gain expertise and/or relationships from M&A

Disclaimer: This is not guidance or a forecast. This information is meant as a representation of the Company operating model targets only. 1. Refer to EBITDA reconciliation table found on Appendix slide 26

+44%

+12%

-6%

-10%

M&A Strategy• Add synergistic products in growth markets

• Leverage existing platform

• Complete at least one acquisition by year-end 2020

• Support growth goals

• Augment organic low to mid single digit revenue growth with inorganic growth adding additional revenue and

• Increase EBITDA growth and expand EBITDA margin with operating leverage

/ M&A STRATEGY TO BOOST REVENUE AND EBITDA /

~$15 M Revenue Adjacent To Existing Solutions

Synergistic Geographies

NewGeographies

ProjectOriented

Revenue$30m

RevenueLow

ProductOriented

Magal Acquisition Sweet Spot

ExistingGeographies

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Continued growth from SenstarProduct Division, revenue upside from Magal Integrated Solutions

and strategic M&A

/ MID-TERM OPERATING MODEL /

Operating Metric Targets*

2019 Versus Target

EBITDA Margin

$86.8 M ~40%-45%

Gross Margin

45%

14%9%

$150 M+

Revenue

73%

+56%

Higher margin contribution from Senstar Product Division, acquisition synergies and operating expense control

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* Reference Magal’s safe harbor statement regarding estimated growth rates and predictive statements

Revenue mix from SenstarProduct Division and Magal

Integrated Solutions

• Serving global industry growth with strong macro backdrop in one of fastest growing segments – physical security

• Management team executing a strategy to grow revenue, improve margins and increase profitability

• New focus for 2020 on key high growth verticals leveraging core capabilities and benefiting both business divisions

• Profitable with strong balance sheet and generating cash to fund M&A and investment

/ INVESTOR TAKEAWAYS /

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APPENDIX

20

21

16.7

/ SUMMARY BALANCE SHEET/

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16.7

/ SUMMARY BALANCE SHEET/

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16.7

/ SUMMARY INCOME STATEMENT/

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/ EBITDA RECONCILIATION/

/ COMPANY HISTORY /

/ 1969 / 1984 / 1993 / 1997 / 2013 / 2014 / 2016 / 2018 /

FoundedwithinIsraeliAircraft Industries

Magal’s IPO on the NASDAQ

Acquisition of CYBERSEAL & OPTELLIOS

Acquisition of AIMETIS

Magalbecomesa privatecompany

Acquisition of SENSTAR

FIMI acquires controlling stake of Magal

Acquisition of control of ESC BAZ

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Kobi Vinokur – Chief Financial OfficerJoined Magal in 2016.Previously chief financial officer of Miya (ArisonGroup), a global provider of comprehensive water efficiency solutions and a water utilities operator. Prior to that, he served in several key leadership positions at Brink's Company; as an executive director at Shapira Films, one of the leading film distribution and production companies in Israel; and as head of treasury at the Ministry of Defence of Israel.Received CFO Excellence award.Certified public accountant in the United States and Israel.

Dror Sharon - CEOJoined Magal in June 2018.Previously president and CEO at ContropPrecision Technology Ltd., a company specializing in developing, manufacturing and selling Electro Optical and Precision Motion Control Systems for the global defense and homeland security markets. Controp’s revenue grew significantly while maintaining high profit margins. Prior to that, served in various positions including president & CEO at OpgalOptronics Ltd.

Fabien Haubert – Senstar Managing Director Joined Magal in 2018Previously Regional Director at a major UK-based video security solution providerPrior to that, worked with several companies in the areas of video management, IP video surveillance, intrusion detection, access control and system integration. Extensive experience in sales management with many years of responsibility for the EMEA region. He speaks French, English, Spanish, and Italian, and has a working knowledge of Dutch.

Doron Kerbel – Vice President, General Counsel & Company SecretaryJoined Magal in July 2015.Previously, served for more than eight years as legal counsel at Elbit Systems Ltd. Aerospace Division. Extensive experience in advising on variety of commercial legal issues, M&A, and PFI and BOM projects, both locally and internationally. Prior to that, associate lawyer in M. Firon& Co. and as senior legal counsel for International Law at the Israeli Embassy to the Netherlands.

/ MANAGEMENT TEAM PROFILES/

Arnon Bram – General Manager MagalIntegrated SolutionsJoined Magal in February 2020.Previously, served as DIRCM (Directional Infrared Counter Measures) Business Unit Manager at Elbit Systems.Prior to that, CEO of UAV Tactical Systems, a JV between Elbit Systems and Thales in the UK. Extensive experience in international sales, multi-year strategy setting and execution, international customers management, multi-disciplinary engineering development, programs, production and large scale supply chain management.

THANK YOUInvestor Relations Contact:Brett MaasHayden IR(646) 536-7331brett@haydenir.com

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