Investors Presentation 2018 I.D. Meitav Dash Total Bond - - PowerPoint PPT Presentation

Meitav Dash Investments LTD

Investors Presentation 2018

I.D. Meitav Dash

• Meitav Dash is a public company with

extensive experience and expertise in financial asset management.

• Meitav Dash is an experienced and stable

investment house, with decades of experience in investment management. We pride

• urselves on professional, transparent and fair

management for the benefit of our customers.

50 50%

At least

• f net profit

Dividend Distribution Policy

126 126

NIS Billion

Total Assets Under Management

As at 31/12/18

825 825

NIS Million

Shareholders Equity

As at 31/12/18

A1

Bond Rating

652 652

NIS Million

Market Value In the TA-125 Index

125 125

BRM, 29.40% Zvi Stepak, 28.45% Shares held by the public, 39.73%

2

As at 31/12/18 As at 31/12/18

Range of Products and Services

Asset Management Activities

3

33.7 33.7 21.1 21.1 50.9 50.9 17.6 17.6

Mutual Funds

ETFs

Provident, Study and Pension Funds

Portfolio Management

Additional activities

• Meitav Dash Trade
• Meitav Dash Brokerage
• Meitav Dash Global Markets
• Insurance Agencies
• Meitav Dash Loans
• Peninsula - SME Credit

AUM as at 31/12/18 in NIS Billion

Provident Funds, Study Funds and Pension Funds 50.9 ETNs 21.1 Mutual Funds 33.7 Portfolio Management 17.6 Other 3.1

AUM UM

126.4

NIS Billion

4

As at 31/12/18 Other = Mutual funds under hosting and distribution arrangements

Non Bank Loans- Peninsula 7% Provident Funds, Study Funds and Pension Funds 36% Mutual Funds & Portfolio Management 25% ETNs 13% Trade & Brokerage 12% Other 7% Non Bank Loans- Peninsula 12% Provident Funds, Study Funds and Pension Funds 22% Mutual Funds & Portfolio Management 28% ETNs 19% Trade & Brokerage 13% Other 6%

Other = Insurance Agencies, Global Markets, Meitav Dash Loans and other activities

5

235

NIS Million

890

NIS Million

Selected Financial Data 2018

Revenue Normalized EBITDA

EBITDA Q4 2018 26 Profit before tax 16 Depreciation and amortization 8 Financing expenses, net 50 EBITDA FFO Q4 2018 14 Profit for the period 16 Depreciation and amortization (2) Deferred taxes 2 Revaluation of debentures 10 Other 40 FFO

Selected Financial Data

*Including income of NIS 22 million in 2017 and NIS 5 million in 2018 from revaluation to fair value of TASE shares

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2018 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 2017 Revenue 890 222 231 221 216 221 874 Expenses 688 175 175 169 169 169 666 EBITDA 235 * 50 67 * 60 58 * 59 * 258 * Normalized EBITDA 235 52 65 61 57 61 243 FFO 152 40 40 36 36 34 157 Profit for the period 77 14 25 15 23 25 106 Profit attributed to the shareholders 67 12 22 13 20 21 95

In NIS Million

Dividend Distribution History

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10 10 10 10 10 10 10 10 10 10 15 10 15 15 14 15 45 45 49 45 10 20 30 40 50 60 Q1 Q2 Q3 Q4 Annual NIS Million

Long Term Vision Decreasing Dependence on the Capital Markets

Revenue from non bank loans, insurance, trade, brokerage and others

8

Revenue from asset management activities

14% 86%

2015

23% 77%

2017

40% 60%

2020- 2022

26% 74%

2018

9

Revolution - Meitav Dash Pension Funds

Annual deposits of

• ver NIS 1.6 Billion

AUM NIS 10 Billion Thousands of new employers joined the fund About 285 thousand customers International reinsurer First place in customer service in the Ministry of Finance index

as at 28/3/19

Segment Analysis

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Provident, Study & Pension Funds

• One of the selected pension funds in MOF

tender for the second time

• The largest pension fund among investment

houses, with assets of NIS 9.2 billion and annual deposits of over NIS 1.5 billion

• First place in the Pensioners' Satisfaction Index

for 2018 by the Ministry of Finance

2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 50.8 50.8 50.6 51.2 52.6 50.9 50.9 AUM 338 88 81 80 80 79 320 Revenue 0.68% 0.70% 0.64% 0.63% 0.61% 0.61% 0.62% Annualized Management Fees 48 14 13 11 8 10 42 Operating Profit AUM in NIS Billion the rest in NIS Million, As at 31/12/18

50.9 50.9

NIS Billion

21.1 21.1

Provident Funds Study Funds Pension Funds

8.8 8.8%

AUM Market Share

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20.6 20.6 9.2 9.2

ETFs

• Wide range of products Including 49 tracking funds

(included in mutual fund assets) with annual revenues of over NIS 10 million

• Professionalism and high trading capabilities
• Shift from ETNs to ETFs is completed at the end of

2018

• Merger of Tachlit Indices and Meitav Dash Mutual

Funds

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24.6 24.6%

2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 28.4 28.4 26.2 25.6 26.2 21.1 21.1 AUM 113 26 21 31 39 22 113 Revenue 0.41% 0.37% 0.30% 0.48% 0.60% 0.37% 0.44% Annualized Management Fees 46 10 4 13 20 4 41 Operating Profit

21.1 21.1

NIS Billion

Market Share AUM

AUM in NIS Billion the rest in NIS Million, As at 31/12/18

17.6 17.6

NIS Billion 22.2 22.2 7.5 7.5 4.0 4.0

Mutual Funds & Portfolio Management

• Growth in 2018 with more then NIS 2

billion, while the mutual fund Industry has suffered redemptions.

• Alternative product growth:

Consumer Credit Fund (Pagaya), Real Estate Funds, Investment in Liquidity Capital (specializing in the acquisition of future revenues of growth companies)

• Launch of Meitav Dash Manager - Digital

Portfolio Management from NIS 25,000

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2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 29.5 29.5 29.2 30.6 32.3 33.7 33.7 AUM Mutual Funds 17.7 17.7 17.6 17.7 18.2 17.6 17.6 AUM Portfolio Management 218 55 54 54 57 58 223 Revenue 0.89% 0.87% 0.87% 0.86% 0.86% 0.86% 0.86% Annualized management fees from traditional funds* 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% Annualized management fees from money market funds 0.33% 0.34% 0.33% 0.33% 0.33% 0.33% 0.33% Annualized management fees from portfolio management 80 20 19 19 20 18 76 Operating Profit

33.7 33.7

NIS Billion

Money Market Funds Traditional Funds Tracking Funds

15.3 15.3%

* Excluding tracking funds.

AUM Portfolio Management Market Share Mutual Funds AUM Mutual Funds

AUM in NIS Billion the rest in NIS Million, As at 31/12/18

Trade & Brokerage

• The leading non-bank TASE member
• Organic growth since the beginning of the year
• Mergers and Acquisitions:
• A-Broker transaction in 2016
• Completion of the Bank of Jerusalem

transaction in the first quarter of 2018

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2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 77 22 25 26 25 29 105 Revenue 21 7 7 9 6 11 33

Operating Profit

NIS Million As at 31/12/18

Of the trading turnover in shares and bonds on the Tel Aviv Stock Exchange

6.9 6.9%

12.0 12.0

NIS Billion Customer Assets

Financial Statements

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Balance Sheet

As a result of the completion of Amendment 28 to the Joint Investment Trust Law, 5754-1994, in Q4 2018, the ETNs become ETFs. Therefore, the statement of financial position as

• f December 31, 2018 does not include the assets and liabilities of the special purpose companies that are presented in the financial statements, as of December 31, 2017 as part of

the current assets and the current liabilities

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As at 31/12/17 As at 31/12/18 492 460 Cash and short-term investments 28,981

• Current investments to cover ETNs

664 973 Other current assets 30,137 1,433 Total current assets 163 200 Long term investments 1,190 1,211 Fixed assets and intangible assets 10 20 Deferred taxes 31,500 2,864 Total assets Debt to EBITDA excluding Peninsula Net debt excluding Peninsula 1.6 336 As at 31/12/17 As at 31/12/18 416 573 Credit from banks and others 28,329

• ETNs, liabilities and deposit

621

• Current liabilities of special purpose subsidiaries

to cover ETNs, liabilities and deposit 29 10 Liabilities for short sale of securities 204 389 Trade and other payables 29,599 972 Total current liabilities 106 97 Loans from banks 683 669 Debentures 184 176 Other long term liabilities 802 825 Equity 126 125 Non-controlling interests 31,500 2,864 Total liabilities and equity

Amounts in respect of ETNs NIS Million In NIS Million

Profit and Loss

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2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 818 206 202 207 216 204 829 Revenue from management fees, commissions and other 56 15 14 14 15 18 61 Revenue from Peninsula 874 221 216 221 231 222 890 Total revenue 666 169 169 169 175 175 688 General and administrative expenses, marketing, sales, and financing expenses from Peninsula 208 52 47 52 56 47 202 Operating income 4 2 1 1

• (5)

(3) Profit (loss( from securities held for investment purposes in nostro portfolio (30) (8) (6) (14) (8) (8) (36) Financing expenses, net *(17) (10) *(7) (9) *(8) (9) *(33) Other expenses, net 5

• 1
• 1

1 3 Company's share in earnings in equity accounted investees 170 36 36 30 41 26 133 Profit before taxes on income 64 11 13 15 16 12 56 Taxes on income 106 25 23 15 25 14 77 Profit for the period 95 21 20 13 22 12 67 Profit attributed to the shareholders

In NIS Million *Including income of NIS 22 million in 2017 and NIS 5 million in 2018 from revaluation to fair value of TASE shares

• This presentation was prepared by Meitav Dash Investments Ltd (hereinafter: the “Company” or “Meitav Dash”( and is intended for institutional

investors only. This presentation does not comprise an opinion, suggestion, recommendation, or advice / marketing for purchase and / or holding and /or sale of securities and / or financial assets (including securities of the Company and / or financial assets issued by Companies in the Meitav Dash Group). The presentation is not a substitute for advice / investment marketing or counseling / pension marketing that takes into consideration the special needs of each person.

• This presentation is intended only for delivery and presentation of information provided and its presentation does not replace the need to review

reports published by the Company to the public. That shown is the opinion of the authors alone and reflects their understanding at the date of the

• presentation. The data, information, and analysis set forth, including the views expressed, in this presentation, may change without notice.
• Certain matters discussed in this presentation, including projections, objectives, assumptions, estimates and other information relating to future events

and / or future matters whose occurrence is uncertain and is not controlled by the Company. Information in connection with a forecast of revenues and profitability, are all forward-looking statements as defined in the Securities Law, 1968, that is based on the subjective assessments of the Company’s management based on data and information held by the Company at the date of preparation of the presentation. Realization or non-realization of forward-looking statements will be affected by, among other things, risk factors characterizing the activity of the Company and, developments in the general environment and external factors affecting the activity of the Company, which cannot be estimated in advance and are not under the control of the Company. The Company’s operating results may differ materially from estimated or implicit results stated in the presentation.

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Disclaimer

THANK YOU

MEITAV DASH INVESTMENTS LTD www.meitavdash.co.il

Champion Tower, 30 Sheshet Hayamim, Bnei Brak Phone: 972-3-7903000 Fax: 972-3-7778001