Innovative Payment Solutions

ON TRACK INNOVATIONS

INVESTOR PRESENTATION

August 2018

NASDAQ: OTIV

2

SAFE HARBOR STATEMENT

This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other Federal

securities laws. Whenever words such as "expect," "anticipate," “will,” “should,” "intend," "plan," "estimate" or similar expressions are used, On Track Innovations

Ltd. (“OTI”) is making forward-looking statements. For example, forward-looking statements include statements regarding OTI’s intent to rollout new products

and OTI’s position to capitalize on the cashless payment market and transition to recurring revenue model. Because such statements deal with future events

and are based on OTI's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of OTI could

differ materially from those described in or implied by the statements in this presentation. Forward-looking statements could be impacted by the effects of the

protracted evaluation and validation periods in the U.S. and other markets for contactless payment cards, as well as OTI's new and existing products and OTI’s

ability to execute production on orders, as well as other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in OTI’s

Annual Report on Form 10-K for the year ended December 31, 2017, and in subsequent filings with the Securities and Exchange Commission (“SEC”). Although

OTI believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can provide no assurance that

expectations will be achieved. Except as otherwise required by law, OTI disclaims any intention or obligation to update or revise any forward-looking

statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

OTI has filed a registration statement (including a prospectus) with the SEC and intends to file a prospectus supplement for the offering to which this

communication relates. Before you invest, you should read the prospectus in that registration statement, the prospectus supplement and any other

documents OTI has filed with the SEC for more complete information about OTI and this offering. You may get these documents for free by visiting EDGAR

on the SEC web site at www.sec.gov. Alternatively, OTI or the placement agent will arrange to send you the said documents if you request it by calling Greg

Falesnik, MZ North America; 949-385-6449.

© 2018 On Track Innovations, LTD.

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OTI OVERVIEW

OTI is a global provider of cashless payment

systems (i.e. payment with bank card, mobile

device/wearable, or other secure method).

We offer a variety of solutions, including technology

incorporating Near Field Communication (NFC) –

short range wireless communications between

electronic devices.

Symbol: NASDAQ: OTIV

Stock Price1: $1.02

Market Cap1: $42.0M

Shares O/S2: 41.3M

FD Shares O/S2: 41.2M

Cash(2,3): $8.8M

Debt2: $4.5M

Established: 1990

Employees: 120

(1) As of August 20, 2018

(2) As of June 30, 2018.

(3) Includes short-term investments

Market Served:

• Automated Retail

• Mass Transit Ticketing

• Fuel Management

• IoPT and Wearables

Diversified revenue streams:

• Product Sales

• Recurring Revenues

• Transaction Fees

OTI’s payment system on

vending machineOTI’s IoPT/Wearable

Payment Solution

OTI’s cashless fueling

payment system

4

INDUSTRY LANDSCAPE

• Consumer preferences are shifting – driven by the growth of

NFC-enabled mobile devices for payments

• The global mobile payments market is expected to grow at CAGR of 33%

through 20221

• What is driving the universal adoption of contactless

payments?

• NFC enables vendors to reshape the obsolete attendant business model,

improving margins while providing consumers with a smoother payment

experience

• Credit card issuers are starting to widely issue contactless cards by

default

• Contactless cards are “the new normal” in many European markets

• Mobile applications like Apple Pay and Android Pay expedite consumer

adoption

1) Allied Market Research

Mastercard TQM

Certifications

Compatibility and Technology

5

GLOBAL PRESENCE

Fueling

Payment

Four major regional offices

with deployments in 55

countries worldwide.

Subsidiary Companies

OTI America, Inc.

6

CUSTOMERS, PARTNERS AND CERTIFICATIONS (PARTIAL LIST)

All trademarks are the property of their respective owners

Payment & OEM Customers and Partners

Mastercard TQM

Petroleum Customers and Partners Certifications

Compatibility and Technology

28 years of experience in contactless technologies

Large enough to serve the

world’s largest companies, yet

small and nimble enough to

make quick decisions and

rapidly adopt new technologies

Pioneer and leading developer of

NFC cashless payment solutions for

the unattended payment market

Deep industry knowledge in various

vertical markets, allowing for better

fine tuned solutions to real-life

problems

Providing field-proven solutions for

over two decades demonstrates the

strength of OTI’s core technology

Deep global presence

Long list of global blue chip

satisfied customers and partners

Payment systems carry the highest

certification standards

WHY CUSTOMERS CHOOSE OTI?

8

Mass Transit Ticketing IoPT & WearablesAutomated Retail Fuel Management

MAIN LINES OF BUSINESS

Automated

Retail

IoPT &

Wearables

Fuel

Management

Mass Transit

Ticketing

Automated Retail 9

Mass Transit Ticketing Fuel Management IoPT & Wearables

AUTOMATED

RETAIL

INNOVATIVE AND ADVANCED

CASHLESS PAYMENT SOLUTIONS

10Automated RetailMass Transit Ticketing Fuel Management IoPT & Wearables

DOMINANT PLAYER IN THE

UNATTENDED RETAIL MARKET VERTICAL

Unattended retail market

• Vending machines, kiosks, ATMs,

ticket machines, EV charging stations

Cashless, NFC-enabled payment solutions

Strong market share

• Substantial market share in the U.S.

• Over 700,000 OTI hardware devices sold

worldwide

• Strong growth in the EU

• Market entry into Japan, which has 5 million

vending machines

OTI is transitioning from the one-time sale of a

product, to selling solutions with recurring revenues:

• Selling data and remote monitoring to vending machines

operators

• High-value data leads to cost savings for operators by

reducing labor costs and optimizing operations

11Automated RetailMass Transit Ticketing Fuel Management IoPT & Wearables

TURNKEY SOLUTION DRIVES RECURRING REVENUE OPPORTUNITIES

OTI Hardware(EMV Cashless Readers)

OTI Telemetry(cashless gateways & machine to

machine controllers)

OTI Software(cashless payment systems)

Turnkey

Solution

• Typically the hardware

piece that customers see

• These can accept

payments from bank

cards (magnetic strip &

chip), mobile phones &

wearables

• OTI software is installed

inside the hardware,

allowing for cloud

communications via

3G/4G

• Allows for management

of entire fleet from single

back office

• Real time monitoring,

allows for pricing

control/changes,

inventory maintenance,

etc.

• Typically the hardware

piece that customer do

not see

• Allows for communication

from cashless readers to

merchant/operator

(communicates the

monitoring information

from installed software)

• Drives high margin,

recurring revenue

opportunities

• Offers a single point of

contact for merchants

looking to implement

cashless payment

solutions

12Mass Transit TicketingAutomated Retail Fuel Management IoPT & Wearables

TICKETING

ACCESS

BOARDING CONTROL

MASS

TRANSIT

13Mass Transit TicketingAutomated Retail Fuel Management IoPT & Wearables

MASS TRANSIT TICKETING

• OTI’s cashless payment solutions are ideal for expediting

payment in time-sensitive mass transit applications

• Current e-ticket sales network includes the following

networks in Poland:

• Warsaw City Card network

• Mazovia Railway network

• Lublin City Card network

• Intercity Railway network – sold from Warsaw City

Card TVM’s network

• Current footprint in the mass-transit ticketing market:

• 309 ticket vending machines

• 530 POS terminals

• 2 Customer service centers and a call center

14Fuel ManagementMass Transit TicketingAutomated Retail IoPT & Wearables

EASYFUEL PLUS

FUEL FRAUD PREVENTION

FLEET TRACKING

FUEL

MANAGEMENT

15Fuel ManagementMass Transit TicketingAutomated Retail IoPT & Wearables

EASY FUEL PLUS – A COMPLETE SOLUTION FOR FUEL MANAGEMENT

• On-vehicle smart tag and driver carried key fob

for the fuel management market vertical

• This can act as a loyalty tool for commercial

& retail markets

• Completely wireless and easy to install

• Eliminates fraud and cash handling issues

• Improves billing and information management

• Installations in 53 countries to date

• Major global partners & customers

• Partnership with Dover Fueling System

• BP South Africa (500+ stations)

• Tokheim – presence and access to 40,000

stations worldwide

16IoPT & WearablesMass Transit TicketingAutomated Retail Fuel Management

IOPT &

WEARABLE

INTERNET OF PAYMENT THINGS

WEARABLES

17IoPT & WearablesMass Transit TicketingAutomated Retail Fuel Management

PAY CAPSULE & PAY CAPSULE FLEX

Wearable NFC payment device with integral Secure Element (SE).

Compact generic core, fits various types

of wearable items: bracelets, key chains, necklaces, belts and more.

Pay Capsule –

Communicates with mobile devices via standard audio jack:

• Personalization / Activation

• Add / remove / configure applications

• Select default payment card

• Top-up money to the SE wallet.

18IoPT & WearablesMass Transit TicketingAutomated Retail Fuel Management

PAYENABLE PLATFORM – IOPT & WEARABLES

Industry Verticals

• Jewelry

• Fashion Apparel

• Automotive In-Car

• Entertainment

• Food & Restaurants

• Smart Home

• Health & Fitness

“PayEnable is the only all-in-one solution that

enables any manufacturer to turn its existing

products into payment devices.”Application

• Loyalty & Rewards

• Gift Cards

• Credit Cards

• Closed-Loop Payments

• Brand Authentication

• Location Based Promotions

Mass Transit Ticketing19

MANAGEMENT TEAM

Shlomi Cohen, Chief Executive Officer

Ye’ela Haggai-Levy, ADV., General Counsel &

Corporate Secretary

Assaf Cohen, Chief Financial Officer

Charlotte Hambly-Nuss, Managing Director OTI

PetroSmart

Agnieszka Swiatly, Managing Director OTI Europa

• President & CEO of RayV

(acquired by Yahoo!)

a provider of online video-

streaming solutions.

• President of EMEA for NICE

(Nasdaq: NICE) a publicly

traded billion-dollar

software company.

• Sales positions with Nokia

Siemens Networks,

Siemens Communications

(Frankfurt: SIE), BATM

Advanced Communications

(London: BVC) and Eldor

Computers.

• Legal Advisor at Zim

Integrated Shipping

Services Ltd.

• Associate attorney at

Hyman Spector & Mars,

LLP, in Miami, FL and S.

Friedman & Co., in Haifa,

Israel.

• B.A. in Political Economics

from the University of

California, Berkeley and a

Juris Doctorate (JD) from

the University of San

Francisco School of Law.

• OTI’s controller and

deputy CFO since 2015,

and has been responsible

for the company’s global

finance departments.

• Controller at Samgal Ltd.

• Senior CPA at Ernst &

Young.

• B.A. in economics and

accounting from the

University of Haifa and is

a Certified Public

Accountant in Israel.

• Corporate Affairs

Manager/Legal Advisor to

OTI’s erstwhile distributor

in Africa before being

appointed as CEO.

• Managing Director of OTI

Africa.

• VP Global Business

Development for

Petroleum Payment

Solutions for OTI

• VP Global Petroleum

Products and Payment

Solutions for OTI

• Head of Business

Development & Board

Advisor at MCX Telecom

• Head of Sales CEE Region

at NCR Corporation (the

owner of Retalix).

• MA in Business and

Administration

Postgraduate, Finance,

and Management from

The University of Warsaw.

Mass Transit Ticketing20

GROWTH OPPORTUNITIES

EV Charger

ATM

VendingFueling

Kiosk

Ticketing

SOLUTIONS

Recurring Revenue

Japan

U.S

Europe

Australia

Mass Transit Ticketing21

FINANCIALS

• Shifting business model focuses on higher-margin, recurring revenue

opportunities

• Cost-cutting initiatives complete with focus on sustained cash-flow positive

operations

• Future cash flows protected by +$193M in NOL carry-forwards3

(USD $ in Millions) June 30, 2018 June 30, 2017

Revenues $12.0 $11.0

Net loss2 $(0.6) $(0.8)

Adjusted EBITDA1 $0.4 $0.2

(USD $ in Millions) June 30, 2018 June 30, 2017

Cash & Cash Equivalents $6.6 $6.8

Short Term Investments $2.2 $3.3

Debt $4.5 $5.0

(1) Adjusted EBITDA is a non-GAAP term and includes add-back of stock compensation expense. Please see reconciliation for additional information.

(2) Includes loss from both continuing and discontinued operations.

(3) Includes net operating loss & capital loss carry-forwards as of December 31, 2017.

($ in thousands)

$0

$50

$100

$150

$200

$250

$300

$350

Dec. 31,

2017

Mar. 31,

2018

Jun. 30,

2018

Net Income2Adjusted EBITDA1

Experienced Management Team

with proven track record

Financial Profile:

KEY TAKEAWAYS

• Global leader in

providing & developing

turnkey cashless

payment systems &

secured solutions

(i.e. payment with bank

card, mobile device

/wearable, or other

secure method).

• Growing government &

fortune 500 customer

base

• Multiple growth

opportunities (by both

geography & segment)

• Shifting business model

focuses on higher-margin,

recurring revenue

opportunities

• Cost-cutting initiatives

complete with focus on

sustained cash-flow positive

operations

• Future profits protected by

$193M in NOL carry-forwards1

• Achieved EBITDA breakeven

for the first time in company

history in FY 2017

(1) Includes net operating loss & capital loss carry-forwards as of December 31, 2017.

CONTACT INFORMATION

Investor Relations Contact:Greg Falesnik

MZ North America

Managing Director

Main: 949-385-6449

greg.falesnik@mzgroup.us

Company Headquarters:Z.H.R Industrial Zone

P.O. Box 32

Rosh Pinna, 1210001

ISRAEL

Tel: +972 (4) 686-8000

info@otiglobal.com