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

Meitav Dash Investments LTD Investors Presentation 2018

I.D. Meitav Dash Total Bond Shareholders • Assets Under Meitav Dash is a public company with Rating Equity extensive experience and expertise in financial Management 126 126 825 825 A1 asset management. • Meitav Dash is an experienced and stable investment house, with decades of experience in investment management. We pride NIS Million NIS Billion ourselves on professional, transparent and fair management for the benefit of our customers. As at 31/12/18 As at 31/12/18 In the Market Dividend TA-125 Index Value Distribution Policy 125 125 Shares BRM, 50 50% 652 652 held by 29.40% the public, 39.73% Zvi Stepak, At least 28.45% NIS Million of net profit As at 31/12/18 As at 31/12/18 2

Range of Products and Services Asset Management Activities 21.1 21.1 50.9 50.9 17.6 17.6 33.7 33.7 Portfolio Provident, Study Mutual ETFs and Pension Funds Management Funds AUM as at 31/12/18 in NIS Billion Additional activities • Meitav Dash Trade • Insurance Agencies • Meitav Dash Brokerage • Meitav Dash Loans • Meitav Dash Global Markets • Peninsula - SME Credit 3

AUM UM Other 3.1 Portfolio Management 17.6 Provident Funds, 126.4 Study Funds and Pension Funds 50.9 Mutual Funds NIS 33.7 Billion ETNs 21.1 As at 31/12/18 Other = Mutual funds under hosting and distribution arrangements 4

Selected Financial Data 2018 Revenue Normalized EBITDA Other Non Bank Non Bank 6% Loans- Other Loans- Peninsula 7% Peninsula 7% Trade & 12% Brokerage Trade & 13% Brokerage 235 890 12% Provident Funds, Provident Study Funds, Study Funds and Funds and ETNs Pension Pension NIS NIS 13% Funds ETNs Funds 22% 19% 36% Million Million Mutual Funds & Portfolio Mutual Funds & Portfolio Management Management 25% 28% Other = Insurance Agencies, Global Markets, Meitav Dash Loans and other activities 5

Selected Financial Data Q4 Q3 Q2 Q1 Q4 2018 2017 2018 2018 2018 2018 2017 Revenue 890 222 231 221 216 221 874 175 Expenses 688 175 169 169 169 666 * * * * * EBITDA 235 58 59 258 50 67 60 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 FFO Q4 2018 EBITDA Q4 2018 Profit for the period 14 Profit before tax 26 16 Depreciation and amortization 16 Depreciation and amortization ( 2 ) Deferred taxes Financing expenses, net 8 Revaluation of debentures 2 EBITDA 50 10 Other 40 In NIS Million FFO *Including income of NIS 22 million in 2017 and NIS 5 million in 2018 from revaluation to fair value of TASE shares 6

Dividend Distribution History 60 Q1 Q2 49 50 Q3 45 45 45 Q4 40 Annual 30 20 15 15 15 15 14 10 10 10 10 10 10 10 10 10 10 10 10 0 NIS Million 7

Long Term Vision Decreasing Dependence on the Capital Markets 14% 23% 26% 40% 2020- 2015 2018 2017 2022 60% 77% 74% 86% Revenue from asset management activities Revenue from non bank loans, insurance, trade, brokerage and others 8

Revolution - Meitav Dash Pension Funds Thousands of new Annual deposits of AUM NIS 10 Billion employers joined the fund over NIS 1.6 Billion First place in customer service International reinsurer About 285 thousand in the Ministry of Finance index customers as at 28/3/19 9

Segment Analysis 10

Provident, Study & Pension Funds Market Share AUM 8.8% 8.8 21.1 21.1 50.9 50.9 Study Funds Provident Funds 20.6 20.6 NIS Billion 9.2 9.2 Pension Funds Q4 Q3 Q2 Q1 Q4 2018 2017 • One of the selected pension funds in MOF 2018 2018 2018 2018 2017 tender for the second time 50.6 50.8 AUM 50.9 50.9 52.6 51.2 50.8 • The largest pension fund among investment 88 Revenue 320 79 80 80 81 338 houses, with assets of NIS 9.2 billion and annual deposits of over NIS 1.5 billion Annualized 0.70% 0.62% 0.61% 0.61% 0.63% 0.64% 0.68% Management Fees • First place in the Pensioners' Satisfaction Index for 2018 by the Ministry of Finance 14 Operating Profit 42 10 8 11 13 48 AUM in NIS Billion the rest in NIS Million, As at 31/12/18 11

ETFs Market Share AUM 21.1 21.1 24.6 24.6% NIS Billion Q4 Q3 Q2 Q1 Q4 • Wide range of products Including 49 tracking funds 2018 2017 2018 2018 2018 2018 2017 (included in mutual fund assets) with annual revenues of over NIS 10 million AUM 21.1 21.1 26.2 25.6 26.2 28.4 28.4 • Professionalism and high trading capabilities Revenue 113 22 39 31 21 26 113 • Shift from ETNs to ETFs is completed at the end of Annualized 0.44% 0.37% 0.60% 0.48% 0.30% 0.37% 0.41% 2018 Management Fees • Merger of Tachlit Indices and Meitav Dash Mutual Operating Profit 41 4 20 13 4 10 46 Funds AUM in NIS Billion the rest in NIS Million, As at 31/12/18 12

Mutual Funds & Portfolio Management Market Share AUM Mutual Funds AUM Portfolio Mutual Funds Management 15.3 15.3% 33.7 33.7 17.6 17.6 22.2 22.2 Traditional Funds 7.5 7.5 Money Market Funds NIS Billion NIS Billion 4.0 4.0 Tracking Funds Q4 Q3 Q2 Q1 Q4 2018 2017 • Growth in 2018 with more then NIS 2 2018 2018 2018 2018 2017 billion, while the mutual fund Industry has 29.2 29.5 AUM Mutual Funds 33.7 33.7 32.3 30.6 29.5 suffered redemptions. 17.7 AUM Portfolio Management 17.6 17.6 18.2 17.7 17.6 17.7 • Alternative product growth : Revenue 223 58 57 54 54 55 218 Consumer Credit Fund (Pagaya), Real Estate Funds, Annualized management fees 0.86% 0.86% 0.86% 0.86% 0.87% 0.87% 0.89% Investment in Liquidity Capital (specializing from traditional funds* in the acquisition of future revenues of Annualized management fees 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% 0.15% growth companies) from money market funds Annualized management fees • Launch of Meitav Dash Manager - Digital 0.33% 0.33% 0.33% 0.33% 0.33% 0.34% 0.33% from portfolio management Portfolio Management from NIS 25,000 Operating Profit 76 18 20 19 19 20 80 AUM in NIS Billion the rest in NIS Million, As at 31/12/18 * Excluding tracking funds. 13

Trade & Brokerage Of the trading Customer Assets 12.0 12.0 6.9 6.9% turnover in shares and bonds on the Tel Aviv Stock Exchange NIS Billion • The leading non-bank TASE member • Organic growth since the beginning of the year Q4 Q3 Q2 Q1 Q4 2018 2017 2018 2018 2018 2018 2017 • Mergers and Acquisitions: Revenue 105 29 25 26 25 22 77 - A-Broker transaction in 2016 - Completion of the Bank of Jerusalem Operating transaction in the first quarter of 2018 33 11 6 9 7 7 21 Profit NIS Million As at 31/12/18 14

Financial Statements 15

Balance Sheet As at As at As at As at 31/12/18 31/12/17 31/12/18 31/12/17 Credit from banks and others 573 416 Cash and short-term investments 460 492 28 ,981 ETNs, liabilities and deposit - 28,329 Current investments to cover ETNs - Other current assets 973 664 Current liabilities of special purpose subsidiaries - 621 to cover ETNs, liabilities and deposit Total current assets 1,433 30,137 Long term investments 200 163 Liabilities for short sale of securities 10 29 1 ,190 Fixed assets and intangible assets 1,211 Trade and other payables 389 204 Deferred taxes 20 10 Total current liabilities 972 29,599 Loans from banks 97 106 Total assets 2,864 31,500 Debentures 669 683 NIS Million 184 Other long term liabilities 176 Net debt Debt to EBITDA Equity 825 802 excluding excluding Peninsula Peninsula Non-controlling interests 125 126 1.6 336 Total liabilities and equity 2,864 31,500 In NIS Million 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 of 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 16 Amounts in respect of ETNs

Profit and Loss 2018 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 2017 202 Revenue from management fees, commissions and other 829 204 216 207 206 818 Revenue from Peninsula 61 18 15 14 14 15 56 Total revenue 890 222 231 221 216 221 874 General and administrative expenses, marketing, sales, and financing 688 175 175 169 169 169 666 expenses from Peninsula Operating income 202 47 56 52 47 52 208 Profit (loss ( from securities held for investment purposes in nostro portfolio (3) (5) - 1 1 2 4 Financing expenses, net (36) (8) (8) (14) (6) (8) (30) Other expenses, net *(33) (9) *(8) (9) *(7) (10) *(17) Company's share in earnings in equity accounted investees 3 1 1 - 1 - 5 Profit before taxes on income 133 26 41 30 36 36 170 Taxes on income 56 12 16 15 13 11 64 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 *Including income of NIS 22 million in 2017 and NIS 5 million in 2018 from revaluation to fair value of TASE shares 17