Investors Presentation Q2, 2018 I.D. Meitav Dash Total Bond - - PowerPoint PPT Presentation

Meitav Dash Investments LTD

Investors Presentation Q2, 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

130 130

NIS Billion

Total Assets Under Management

As at 30/6/18

811 811

NIS Million

Shareholders Equity

As at 30/6/18

A1

Bond Rating

734 734

NIS Million

Market Value In the TA-125 Index

125 125

BRM, 29.42% Zvi Stepak, 28.38% Shares held by the public, 39.81%

2

As at 28/6/18 As at 30/6/18

Range of Products and Services

Asset Management Activities

3

30.6 30.6 25.6 25.6 51.2 51.2 17.7 17.7

Mutual Funds

ETNs

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 30/6/18 in NIS Billion

Provident Funds, Study Funds and Pension Funds 51.2 ETNs 25.6 Mutual Funds 30.6 Portfolio Management 17.7 Other 4.9

AUM UM

130

Billion NIS

4

As at 30/6/18 Other = Mutual funds under hosting and distribution arrangements

Non Bank Loans- Peninsula 6% Provident Funds, Study Funds and Pension Funds 36% Mutual Funds & Portfolio Management 25% ETNs 14% Trade & Brokerage 12% Other 7% Non Bank Loans- Peninsula 10% Provident Funds, Study Funds and Pension Funds 22% Mutual Funds & Portfolio Management 27% ETNs 24% Trade & Brokerage 13% Other 4%

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

5

61

Million NIS

221

Million NIS

Selected Financial Data Q2 2018

Revenue Normalized EBITDA

EBITDA 30 Profit before tax 16 Depreciation and amortization 14 Financing expenses, net 60 EBITDA FFO 15 Profit for the period 16 Depreciation and amortization (1) Deferred taxes 5 Revaluation of debentures 1 Other 36 FFO

Selected Financial Data

In NIS Million

6

Q2 2018 Q1 2018 Q2 2017 2017 Revenue 221 216 221 874 Expenses 169 169 165 666 EBITDA 60 58 63 258 Normalized EBITDA 61 57 65 243 FFO 36 36 44 157 Profit for the period 15 23 21 106 Profit attributed to the shareholders 13 20 19 95

Dividend Distribution History

7

10 10 10 10 10 10 10 10 10 10 15 15 15 14 45 45 49 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

Growth in Traditional Mutual Funds

• Our Mutual Funds activity is stable and has grown over the years in traditional Mutual Funds
• Low standard deviation in the rate of annual change in assets
• The lowest rate of drawdown in assets in the last 5.5 years

The data refer only to traditional mutual funds (without money market funds or tracking funds) *Companies with the largest AUM in 2012. ** In 2017 Menorah Mutual Funds was acquired by Altshuler Shaham. The data are presented together starting 2012

Fund Manager*

AUM Traditional Mutual Funds 12/2012 AUM Traditional Mutual Funds 30/6/2018 Average rate of change in assets 5.5 years Annual rate

• f change in

assets Standard deviation

• f rate
• f change in assets

Maximum cumulative decrease Psagot 22,732 18,796

• 17.3%
• 2.9%

5.4%

• 22.8%

Harel 20,154 13,284

• 34.1%
• 5.5%

12.8%

• 45.0%

Altshuler- Shaham (+Menora**) 19,788 18,366

• 7.2%
• 1.3%

23.2%

• 54.5%

Meitav Dash 13,053 21,414 64.0% 9.4% 10.2%

• 4.1%

Excellence 11,490 6,624

• 42.3%
• 6.6%

17.7%

• 62.5%

Migdal 9,560 10,084 5.5% 1.0% 13.2%

• 9.7%

I.B.I 6,420 13,741 114.0% 14.8% 60.0%

• 58.9%

Yelin Lapidot 4,949 24,666 398.4% 33.9% 66.9%

• 8.9%

9

Segment Analysis

10

Provident, Study & Pension Funds

• More than 1 million customers including 100,000

new savers since elected by the MOF as managers of the default pension fund

• The largest pension fund among investment

houses, with assets of NIS 8.6 billion and annual deposits of NIS 1.5 billion

• Full digital platform for joining investment

provident funds

2017 Q2 2017 Q1 2018 Q2 2018 50,770 48,930 50,574 51,211 AUM 338 84 81 80 Revenue 0.68% 0.69% 0.64% 0.63% Annualized Management Fees 48 12 13 11 Operating Profit *NIS Million As at 30/6/18

51.2 51.2

NIS Billion

21.6 21.6

Provident Funds Study Funds Pension Funds

9.2 9.2%

AUM Market Share

11

21.0 21.0 8.6 8.6

ETNs

• Wide range of products Including 44 tracking funds

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

• Professionalism and high trading capabilities
• Amendment 28 by the end of the year
• Preparations for the merger of Tachlit Indices and

Meitav Dash Mutual Funds

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27.7 27.7%

2017 Q2 2017 Q1 2018 Q2 2018 28,361 26,931 26,149 25,623 AUM 113 33 21 31 Revenue 0.41% 0.49% 0.30% 0.48% Annualized Management Fees 46 16 4 13 Operating Profit

25.6 25.6

NIS Billion

Market Share AUM

*NIS Million As at 30/6/18

17.7 17.7

NIS Billion 21.3 21.3 5.0 5.0 4.3 4.3

Mutual Funds & Portfolio Management

• Since the beginning of the year, the

mutual funds of Meitav Dash have grown by NIS 1 billion, while the fund industry has suffered redemptions.

• Alternative product development:

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

13

2017 Q2 2017 Q1 2018 Q2 2018 29,492 28,185 29,246 30,555 AUM Mutual Funds 17,690 18,327 17,578 17,738 AUM Portfolio Management 218 54 54 54 Revenue 0.89% 0.90% 0.87% 0.86% Annualized management fees from traditional funds* 0.15% 0.15% 0.15% 0.15% Annualized management fees from money market funds 0.33% 0.33% 0.33% 0.33% Annualized management fees from portfolio management 80 21 19 19 Operating Profit

30.6 30.6

NIS Billion

Money Market Funds Traditional Funds Tracking Funds

12.7 12.7%

*NIS million As at 30/6/18 Excluding tracking funds

AUM Portfolio Management Market Share Mutual Funds AUM Mutual Funds

Trade & Brokerage

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

transaction in the first quarter of 2018

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2017 Q2 2017 Q1 2018 Q2 2018 77 17 25 26 Revenue 21 4 7 9

Operating Profit

*NIS Million As at 30/6/18

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

6.3 6.3%

11.9 11.9

NIS Billion Customer Assets

Financial Statements

Experience that leads forward  Investors Deck 15

Balance Sheet

Amounts in respect of ETNs

16

As at 31/12/17 As at 30/6/17 As at 30/6/18 492 661 555 Cash and short-term investments 28,981 27,637 26,265 Current investments to cover ETNs 664 578 668 Other current assets 30,137 28,876 27,488 Total current assets 163 130 187 Long term investments 1,190 1,206 1,197 Fixed assets and intangible assets 10 18 12 Deferred taxes 31,500 30,230 28,884 Total assets Debt to EBITDA excluding Peninsula Net debt excluding Peninsula Debt to EBITDA Net debt 1.7 367 4.0 854 As at 31/12/17 As at 30/6/17 As at 30/6/18 416 424 385 Credit from banks and others 28,329 26,899 25,593 ETNs, liabilities and deposit 621 717 640 Current liabilities of special purpose subsidiaries to cover ETNs, liabilities and deposit 29 73 32 Liabilities for short sale of securities 204 210 211 Trade and other payables 29,599 28,323 26,861 Total current liabilities 106 110 101 Loans from banks 683 693 812 Debentures 184 195 178 Other long term liabilities 802 781 811 Equity 126 128 121 Non-controlling interests 31,500 30,230 28,884 Total liabilities and equity

Amounts in respect of ETNs NIS Million In NIS Million

Profit and Loss

17

2017 Q2 2017 Q1 2018 Q2 2018 818 207 202 207 Revenue from management fees, commissions, ETN and other 56 14 14 14 Revenue from Peninsula 874 221 216 221 Total revenue 666 165 169 169 General and administrative expenses, marketing, sales, and financing expenses from Peninsula. 208 56 47 52 Operating income 4

• 1

1 Profit from securities held for investment purposes in nostro portfolio, net (30) (13) (6) (14) Financing expenses, net (17) (8) (7) (9) Other expenses, net 5 1 1

• Company's share in earnings in equity accounted investees

170 36 36 30 Profit before taxes on income 64 15 13 15 Taxes on income 106 21 23 15 Profit for the period 95 19 20 13 Profit attributed to the shareholders

In NIS Million

• 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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THANK YOU

MEITAV DASH INVESTMENTS LTD www.meitavdash.co.il

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