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 Total Bond Shareholders • Assets Under Meitav Dash is a public company with Rating Equity extensive experience and expertise in financial Management 130 130 811 811 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 30/6/18 As at 30/6/18 In the Market Dividend TA-125 Index Value Distribution Policy 125 125 Shares BRM, 50 50% 734 734 held by 29.42% the public, 39.81% Zvi Stepak, At least 28.38% NIS Million of net profit As at 30/6/18 As at 28/6/18 2

Range of Products and Services Asset Management Activities 25.6 25.6 51.2 51.2 30.6 30.6 17.7 17.7 Portfolio Provident, Study Mutual ETNs and Pension Funds Management Funds AUM as at 30/6/18 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 4.9 Portfolio Management 17.7 Provident Funds, 130 Study Funds and Pension Funds 51.2 Mutual Funds Billion 30.6 NIS ETNs As at 30/6/18 25.6 Other = Mutual funds under hosting and distribution arrangements 4

Selected Financial Data Q2 2018 Revenue Normalized EBITDA Non Bank Non Bank Loans- Other Other Loans- Peninsula 4% 7% Peninsula Trade & 6% 10% Brokerage Trade & 13% Brokerage 61 221 12% Provident Funds, Study Provident Funds and Funds, Study Pension Funds and ETNs Funds Pension 14% 22% Funds ETNs Million Million 36% 24% NIS NIS Mutual Funds & Portfolio Mutual Funds & Portfolio Management Management 27% 25% Other = Insurance Agencies, Global Markets, Meitav Dash Loans and other activities 5

Selected Financial Data Q2 Q1 Q2 2017 2018 2018 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 FFO EBITDA Profit for the period 15 Profit before tax 30 Depreciation and amortization 16 Depreciation and amortization 16 Deferred taxes (1) Financing expenses, net 14 Revaluation of debentures 5 EBITDA 60 Other 1 FFO 36 In NIS Million 6

Dividend Distribution History 60 Q1 49 Q2 50 45 45 Q3 Q4 40 Annual 30 20 15 15 15 14 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% 40% 2020- 2015 2017 2022 60% 77% 86% Revenue from non bank loans, insurance, trade, brokerage and others Revenue from asset management activities 8

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 AUM AUM Average rate of Annual rate Standard deviation Maximum Fund Traditional Traditional change in of change in of rate cumulative Manager* Mutual Funds Mutual Funds assets 5.5 assets of change in assets decrease 12/2012 30/6/2018 years 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 19,788 18,366 -7.2% -1.3% 23.2% -54.5% (+Menora**) 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% 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 9

Segment Analysis 10

Provident, Study & Pension Funds Market Share AUM 9.2% 9.2 21.6 21.6 51.2 51.2 Study Funds Provident Funds 21.0 21.0 NIS Billion 8.6 8.6 Pension Funds • More than 1 million customers including 100,000 Q2 2018 Q1 2018 Q2 2017 2017 new savers since elected by the MOF as managers of the default pension fund AUM 51,211 50,574 48,930 50,770 • The largest pension fund among investment Revenue 80 81 84 338 houses, with assets of NIS 8.6 billion and annual deposits of NIS 1.5 billion Annualized Management 0.63% 0.64% 0.69% 0.68% Fees • Full digital platform for joining investment provident funds Operating Profit 11 13 12 48 *NIS Million As at 30/6/18 11

ETNs Market Share AUM 25.6 25.6 27.7 27.7% NIS Billion • Wide range of products Including 44 tracking funds Q2 2018 Q1 2018 Q2 2017 2017 (included in mutual fund assets) with annual revenues of NIS 10 million and rising AUM 25,623 26,149 26,931 28,361 • Professionalism and high trading capabilities Revenue 31 21 33 113 • Amendment 28 by the end of the year Annualized Management • Preparations for the merger of Tachlit Indices and 0.48% 0.30% 0.49% 0.41% Fees Meitav Dash Mutual Funds Operating Profit 13 4 16 46 *NIS Million As at 30/6/18 12

Mutual Funds & Portfolio Management Market Share AUM Mutual Funds AUM Portfolio Mutual Funds Management 12.7 % 12.7 30.6 30.6 17.7 17.7 21.3 21.3 Traditional Funds 5.0 5.0 Money Market Funds NIS Billion NIS Billion 4.3 4.3 Tracking Funds Q2 2018 Q1 2018 Q2 2017 2017 • Since the beginning of the year, the AUM Mutual Funds 30,555 29,246 28,185 29,492 mutual funds of Meitav Dash have grown AUM Portfolio Management 17,738 17,578 18,327 17,690 by NIS 1 billion, while the fund industry has suffered redemptions. Revenue 54 54 54 218 Annualized management fees from • Alternative product development: 0.86% 0.87% 0.90% 0.89% traditional funds* Consumer Credit Funds (Pagaya), Annualized management fees from money 0.15% 0.15% 0.15% 0.15% Real Estate Funds, market funds Investment in Liquidity Capital, Annualized management fees from 0.33% 0.33% 0.33% 0.33% portfolio management (specializing in the acquisition of future Operating Profit 19 19 21 80 revenues of growth companies) *NIS million As at 30/6/18 Excluding tracking funds 13

Trade & Brokerage Of the trading Customer Assets 11.9 11.9 6.3% 6.3 turnover in shares and bonds on the Tel Aviv Stock Exchange NIS Billion • The leading non-bank stock exchange member. • Organic growth since the beginning of the year. Q2 2018 Q1 2018 Q2 2017 2017 • Mergers and Acquisitions: Revenue 26 25 17 77 - The A-Broker transaction in 2016 - The completion of the Bank of Jerusalem Operating Profit 9 7 4 21 transaction in the first quarter of 2018 *NIS Million As at 30/6/18 14

Financial Statements 15 Experience that leads forward  Investors Deck

Balance Sheet As at As at As at As at As at As at 30/6/18 30/6/17 31/12/17 30/6/18 30/6/17 31/12/17 Credit from banks and others 385 424 416 Cash and short-term investments 555 661 492 ETNs, liabilities and deposit 25,593 26,899 28,329 Current investments to cover ETNs 26,265 27,637 28,981 Other current assets 668 578 664 Current liabilities of special purpose subsidiaries 640 717 621 to cover ETNs, liabilities and deposit Total current assets 27,488 28,876 30,137 Long term investments 187 130 163 Liabilities for short sale of securities 32 73 29 Fixed assets and intangible assets 1,197 1,206 1,190 Trade and other payables 211 210 204 Total current liabilities 26,861 28,323 29,599 Deferred taxes 12 18 10 Loans from banks 101 110 106 Total assets 28,884 30,230 31,500 Debentures 812 693 683 NIS Million Other long term liabilities 178 195 184 Equity 811 781 802 Net d ebt Debt to EBITDA Net debt Debt to EBITDA excluding excluding Non-controlling interests 121 128 126 Peninsula Peninsula Total liabilities and equity 28,884 30,230 31,500 854 4.0 367 1.7 In NIS Million Amounts in respect of ETNs 16 Amounts in respect of ETNs

Profit and Loss Q2 2018 Q1 2018 Q2 2017 2017 202 Revenue from management fees, commissions, ETN and other 207 207 818 Revenue from Peninsula 14 14 14 56 Total revenue 221 216 221 874 General and administrative expenses, marketing, sales, and financing expenses from Peninsula. 169 169 165 666 Operating income 52 47 56 208 Profit from securities held for investment 1 1 - 4 purposes in nostro portfolio, net Financing expenses, net (14) (6) (13) (30) Other expenses, net (9) (7) (8) (17) Company's share in earnings in equity accounted investees - 1 1 5 Profit before taxes on income 30 36 36 170 Taxes on income 15 13 15 64 Profit for the period 15 23 21 106 Profit attributed to the shareholders 13 20 19 95 In NIS Million 17