MAGAL SECURITY SYSTEMS

Focused Solutions for the World’s Security Needs

Dror Sharon, CEOKobi Vinokur, CFO

July 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 and tech-rich solutions

• Two operating divisions

• Magal Integrated Solutions - global provider of turnkey projects

• Senstar Products and SW - recognized tech-rich product brand

• Growth lever – new adjacent operational solutions for existing and new customers

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

3 * As of May 30, 2020** LTM 2020 - Latest twelve months as of March 31, 2020

2020 LTM (**) Total Revenue: $83.1M

Projects58%

Products42%

Recurring Revenue

~20%

Market Cap (*): $68M

Net Cash$54m

EnterpriseValue$14m

7% of revenues spent on R&D

R&D & Technicians

170

TotalEmployees

420

Technology Focus

21%

22%

24%

5%

17%

12%

Global Presence

Israel

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*

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

Industry Growth Drivers

• Increasing security threats to infrastructure and populations

• Increasing government regulation to fight terrorism

• Rising labor costs driving tech-based solutions

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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

// SERVING KEY VERTICAL MARKETS

SEAPORTSVIP SITESMILITARY FACILITIES SMART CITY

REGULATED CANNABIS

BORDERSAIRPORT

SAFE CITY

OIL & GAS

LOGISTICS

CORRECTIONS

CRITICALINFRASTRUCTURE

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Characteristics

• Vulnerable - readily accessible to public

• Require tailored solutions

• Increasingly use tech-centric products

Magal’s solutions and products address the unique requirements of each vertical’s security issues

/ PRIORITIZING RESOURCES ON FOUR KEY VERTICALS FOR 2020/

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• Rapid growth of security needs in these verticals

• Leveraging product and project core capabilities, market leadership, and high standards

• Cross selling adjacent products and services connected to customers’ operations

• Leveraging technology into new applications to expand sales and increase market share

• Investing in Business Development and Sales, and M&A

CRITICALINFRASTRUCTURE

CORRECTIONS

LOGISTICS

OIL & GAS

Core vertical for product division with PIDS and tech-centric products

Remote monitoring of the site’s operations and equipment

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

“Man-Down” sensor and Drone detection

High growth industry with tech-rich needs

VMS analytics for parcel movement logistics -track damaged goods and reduce lost items

Magal’s tech-rich capabilities to secure this capital-intensive sector’s unique needs

Leak detection and tamper warnings

/ MAGAL’S TWO OPERATING DIVISIONS/

Product division – tech-rich, proprietary

• Perimeter intrusion detection systems (PIDS)

• Symphony - security and information management software platform

• Advanced Video Management Software (VMS)

• Electronic Access Control (EACS)

• Intelligent Video Analytics (IVA)

• Intelligent AI processing of multi-technology sensors

• Sells to system integrators and distribution channels

• Fastest growing division with highest contribution margins

Project division - turnkey security projects globally

• Delivering comprehensive, customized security solutions

• In-country presence in major markets

• Full suite of core competencies

• Proprietary Fortis Command & Control platform

• Leverages both Magal/Senstar full suite of products

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

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

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~42% of Revenues

~58% ofrevenues

Israel / Yehud

Corporate HQ & Magal Israel Projects

Canada / Ottawa & Waterloo

PIDS, EAC, IVA & VMS R&D Centers

Manufacturing

Mexico / Cuernavaca

Projects and Products

United States /

Marketing, Sales and Technical

support

Philippines / Clark

Marketing, Sales and Technical

support

Germany/ Ravensburg and Hanau

Marketing, Sales and Technical

support

TWO OPERATING DIVISIONS SUPPORTED GLOBALLY

✓ Security products under the Senstar brand

✓ Security solutions and turnkey projects under the Magal brand

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/ GLOBAL FOOTPRINT TO SUPPORT OPERATIONS / /MAIN FACILITIES/

/ MAGAL INTEGRATED SOLUTIONS DIVISION - CORE COMPETENCIES /

Turnkey Security Projects For Governments And Enterprises

• Comprehensive offering

• Customized solutions capabilities

• Recurring revenue from maintenance, support and training

Consulting on Security Solutions

Design of New Projects or Existing System Upgrades

Full-service Systems Integrator

Inhouse technology

Project Management &

Supervision

Over 50 Years Installation Experience

Maintenance, Support & Training

Magal Project Division Core Competencies

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/ MAGAL INTEGRATED SOLUTIONS DIVISION – FORTIS /

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

*Icons in red are in-house proprietary technology

Magal Project division executes construction and installation using sensors and tech-centric products

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/ MAGAL INTEGRATED SOLUTIONS - COMPREHENSIVE AND EFFECTIVE /

Low-tech

Magal Tech-centric

Solution

Magal’s Tech-centric Solution Delivers

Better Outcomes

/ MAGAL INTEGRATED SOLUTIONS - NEW ANTI DRONE SOLUTION /

Ranges Can be Altered

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• Detection, tracking, and neutralizing drones for homeland security and public safety

• Unique Distributed Solution based on Magal Fortis capabilities, in house EO/IR

• Build out of EO/IR, RADAR, Jamming, hard kill (optional)

/ 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

Broadest portfolio of PIDS solutions

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

#1 Globally Integrated EACS,

VMS, PIDS Solutions

/ NEW SENSTAT PRODUCT INITIATIVES - MULTIDOMAIN ANALYTICS /

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Launch of Multidomain analytics leverages the intersection of PIDS, VMS, IVA and EACS

• Intelligent AI processing of multi-technology sensors for a multi-sensor PIDs solution

– PIDS

– Video & analytics

– Access control

Re-ID analytics

• Identify a person/object through several cameras

• Allow inter-camera tracking

• Analyze differences (damage detection,..)

Revolutionary Multi-sensor PIDS solution

• MEM, Radar, thermal Imaging

• Combination and processing of data

• Unmatched intelligent detection Performance

• Zero false alarm

/ DEVELOPING SENSTAR AI MULTI-SENSOR INTELLIGENT SOLUTION /

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• LIDAR Solution

• Intelligent Thermal Camera

• New-gen Thin Client

• Open Linux edge device

• Embedding local storage

• Embedding analytics

• Access Control HW/SW solution

• Controllers, reader, printers, cards

• Launch of Symphony V8

• Integrated Security Management Software

• Fully open

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/ SENSTAR’S COVID19 ANALYTIC FRAMEWORK /

Mask Detection(Video)

• Safe Spaces intelligent video analytics solutions

• Provides mask detection and monitoring physical distance, occupancy density, and sanitation station compliance

• Enable organizations to meet public health requirements

• Increases employee, customer, and the general public confidence

• Provides liability protection for business and public facilities

Divisional Revenue and Margin Breakdown

/ 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 Senstar revenue 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

$28.5$34.9

$36.6$34.9$38.2

$61.0 $52.4

$48.2

2017 2018 2019 2020 LTM

Revenues2017 - 2020 LTM (*)

($ in millions)Not including divisional eliminations

Senstar Product Division Magal Integration Division

2020 LTM (*) Combined Senstar (**) Magal (**)

R&D 7% 14% 2%

Gross Margin 45% 64% 31%

EBITDA Margin 9% 14% 7%

(*) LTM 2020 - Latest twelve months as of March 31, 2020 (**) Divisional Contribution

$32.6 $36.5 $32.7 $32.0

$64.3

$92.6$86.8

$83.1

2017 2018 2019 2020 (LTM *)

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

• $54.4 million in net cash on balance sheet as of March 31, 2020

• $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. (*) LTM 2020 - Latest twelve months as of March 31, 2020(**) Refer to EBITDA reconciliation table found on Appendix slide 26

+44%

+12%

-6%

-10%

-2%

-4%$0.6

$7.0

$8.1 $7.9

2017 2018 2019 2020 (LTM *)

EBITDA & EBITDA Margin **($ in millions)

7.5 %

1.0 %

9.4 % 9.5 %

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 /

~$30 M Revenue Adjacent To Existing Solutions

Synergistic Geographies

NewGeographies

ProjectOriented

Revenue

$30mRevenue

Low

ProductOriented

Magal Acquisition Sweet Spot

ExistingGeographies

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Continued growth from Senstar Product 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 Senstar Product Division and Magal

Integrated Solutions

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

• Focus on growth verticals leveraging core capabilities of both divisions; offers cross selling opportunities with adjacent products and services

• Profitable with strong balance sheet and generating cash to fund M&A and R&D investment to drive growth

/ INVESTOR KEY TAKEAWAYS /

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APPENDIX

23

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16.7

/ SUMMARY BALANCE SHEET/

25

16.7

/ SUMMARY BALANCE SHEET/

26

16.7

/ SUMMARY INCOME STATEMENT/

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/ EBITDA RECONCILIATION/

/ COMPANY HISTORY /

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

FoundedwithinIsraeli Aircraft 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 (Arison Group), 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 Controp Precision 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 Opgal Optronics 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 Magal Integrated 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 YOU

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

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