Investors Presentation Q3, 2018 I.D. Meitav Dash Total Bond - - PowerPoint PPT Presentation

Meitav Dash Investments LTD

Investors Presentation Q3, 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

133 133

NIS Billion

Total Assets Under Management

As at 30/9/18

823 823

NIS Million

Shareholders Equity

As at 30/9/18

A1

Bond Rating

742 742

NIS Million

Market Value In the TA-125 Index

125 125

BRM, 29.41% Zvi Stepak, 28.38% Shares held by the public, 39.82%

2

As at 27/9/18 As at 30/9/18

Range of Products and Services

Asset Management Activities

3

32.3 32.3 26.2 26.2 52.6 52.6 18.2 18.2

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 30/9/18 in NIS Billion

Provident Funds, Study Funds and Pension Funds 52.6 ETNs 26.2 Mutual Funds 32.3 Portfolio Management 18.2 Other 3.7

AUM UM

133

Billion NIS

4

As at 30/9/18 Other = Mutual funds under hosting and distribution arrangements

Non Bank Loans- Peninsula 6% Provident Funds, Study Funds and Pension Funds 35% Mutual Funds & Portfolio Management 25% ETNs 17% Trade & Brokerage 11% Other 6% Non Bank Loans- Peninsula 12% Provident Funds, Study Funds and Pension Funds 17% Mutual Funds & Portfolio Management 27% ETNs 32% Trade & Brokerage 10% Other 2%

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

5

65

NIS Million

231

NIS Million

Selected Financial Data Q3 2018

Revenue Normalized EBITDA

EBITDA 41 Profit before tax 18 Depreciation and amortization 8 Financing expenses, net 67 EBITDA FFO 25 Profit for the period 18 Depreciation and amortization (2) Deferred taxes 1 Revaluation of debentures )2) Other 40 FFO

Selected Financial Data

In NIS Million *Including income from revaluation to fair value of TASE shares

6

Q3 2018 Q2 2018 Q1 2018 Q3 2017 2017 Revenue 231 221 216 209 874 Expenses 175 169 169 164 666 EBITDA 67* 60 58* 73* 258* Normalized EBITDA 65 61 57 56 243 FFO 40 36 36 37 157 Profit for the period 25 15 23 34 106 Profit attributed to the shareholders 22 13 20 31 95

Dividend Distribution History

7

10 10 10 10 10 10 10 10 10 10 15 10 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

26% 74%

1-9 2018

Growth in Traditional Mutual Funds

• Our traditional mutual funds activity has consistently grow over the years
• Since the beginning of the year, the traditional mutual funds of Meitav Dash have grown by over NIS 2 billion,

while the mutual fund industry has suffered redemptions

• Low standard deviation in the rate of annual change in assets
• The lowest maximum drawdown in assets

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 since 2012

Fund Manager*

AUM Traditional Mutual Funds 12/2012 AUM Traditional Mutual Funds 30/9/2018 Average rate of change in assets Annual rate

• f change in

assets Standard deviation

• f rate
• f change in assets

Maximum cumulative drawdown Psagot 22,732 18,819

• 17.2%
• 3.2%

5.4%

• 22.8%

Harel 20,154 13,095

• 35.0%
• 7.2%

12.7%

• 45.0%

Altshuler- Shaham (+Menora**) 19,788 18,259

• 7.7%
• 1.4%

23.2%

• 54.5%

Meitav Dash 13,053 22,610 73.2% 10.0% 9.6%

• 4.1%

Excellence 11,490 7,151

• 37.8%
• 7.9%

18.8%

• 62.5%

Migdal 9,560 10,057 5.2% 0.9% 13.3%

• 14.0%

I.B.I 6,420 13,586 111.6% 14.5% 60.1%

• 58.9%

Yelin Lapidot 4,949 24,630 397.7% 32.2% 67.0%

• 9.1%

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Segment Analysis

10

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

• Full advanced digital platform for joining

investment provident funds

2017 Q3 2017 Q1 2018 Q2 2018 Q3 2018 50,770 49,620 50,574 51,211 52,590 AUM 338 83 81 80 80 Revenue 0.68% 0.67% 0.64% 0.63% 0.61% Annualized Management Fees 48 12 13 11 8 Operating Profit NIS Million As at 30/9/18

52.6 52.6

NIS Billion

21.9 21.9

Provident Funds Study Funds Pension Funds

8.9 8.9%

AUM Market Share

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21.5 21.5 9.2 9.2

ETNs

• 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 to be completed by end of

2018

• Merger of Tachlit Indices and Meitav Dash Mutual

Funds announced

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27.6 27.6%

2017 Q3 2017 Q1 2018 Q2 2018 Q3 2018 28,361 27,741 26,149 25,623 26,154 AUM 113 23 21 31 39 Revenue 0.41% 0.34% 0.30% 0.48% 0.60% Annualized Management Fees 46 6 4 13 20 Operating Profit

26.2 26.2

NIS Billion

Market Share AUM

NIS Million As at 30/9/18

18.2 18.2

NIS Billion 22.6 22.6 5.2 5.2 4.5 4.5

Mutual Funds & Portfolio Management

• Since the beginning of the year, all

mutual funds of Meitav Dash have grown by NIS 3 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)

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2017 Q3 2017 Q1 2018 Q2 2018 Q3 2018 29,492 28,852 29,246 30,555 32,321 AUM Mutual Funds 17,690 17,534 17,578 17,738 18,218 AUM Portfolio Management 218 54 54 54 57 Revenue 0.89% 0.89% 0.87% 0.86% 0.86% Annualized management fees from traditional funds* 0.15% 0.15% 0.15% 0.15% 0.15% Annualized management fees from money market funds 0.33% 0.33% 0.33% 0.33% 0.33% Annualized management fees from portfolio management 80 19 19 19 20 Operating Profit

32.3 32.3

NIS Billion

Money Market Funds Traditional Funds Tracking Funds

13.3 13.3%

NIS million As at 30/9/18 * Excluding tracking funds

AUM Portfolio Management Market Share Mutual Funds AUM Mutual Funds

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 Q3 2017 Q1 2018 Q2 2018 Q3 2018 77 19 25 26 25 Revenue 21 5 7 9 6

Operating Profit

NIS Million As at 30/9/18

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

7.0 7.0%

13.2 13.2

NIS Billion Customer Assets

Financial Statements

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Balance Sheet

Amounts in respect of ETNs. As a result of the expected completion of Amendment 28 to the Joint Investment Trust Law, 5754-1994, in December 2018, the ETNs will become

• ETFs. Therefore, the statement of financial position as of December 31, 2018 will not include the assets and liabilities of the special purpose companies that are presented in the

financial statements as of, September 30, 2018 as part of current assets and within current liabilities

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As at 31/12/17 As at 30/9/17 As at 30/918 492 587 592 Cash and short-term investments 28,981 28,331 26,688 Current investments to cover ETNs 664 685 765 Other current assets 30,137 29,603 28,045 Total current assets 163 159 180 Long term investments 1,190 1,196 1,187 Fixed assets and intangible assets 10 12 15 Deferred taxes 31,500 30,970 29,427 Total assets Debt to EBITDA excluding Peninsula Net debt excluding Peninsula Debt to EBITDA Net debt 1.4 310 3.3 806 As at 31/12/17 As at 30/9/17 As at 30/9/18 416 424 483 Credit from banks and others 28,329 27,710 26,122 ETNs, liabilities and deposit 621 598 536 Current liabilities of special purpose subsidiaries to cover ETNs, liabilities and deposit 29 35 35 Liabilities for short sale of securities 204 181 243 Trade and other payables 29,599 28,948 27,419 Total current liabilities 106 106 99 Loans from banks 683 787 785 Debentures 184 198 177 Other long term liabilities 802 801 823 Equity 126 130 124 Non-controlling interests 31,500 30,970 29,427 Total liabilities and equity

Amounts in respect of ETNs NIS Million In NIS Million

Profit and Loss

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2017 Q3 2017 Q1 2018 Q2 2018 Q3 2018 818 195 202 207 216 Revenue from management fees, commissions, ETN and other 56 14 14 14 15 Revenue from Peninsula 874 209 216 221 231 Total revenue 666 164 169 169 175 General and administrative expenses, marketing, sales, and financing expenses from Peninsula 208 45 47 52 56 Operating income 4 1 1 1

• Profit from securities held for investment purposes in nostro portfolio

(30) (3) (6) (14) (8) Financing expenses, net (17)* 9* (7)* (9) (8)* Other revenue )expenses(, net 5 3 1

• 1

Company's share in earnings in equity accounted investees 170 55 36 30 41 Profit before taxes on income 64 21 13 15 16 Taxes on income 106 34 23 15 25 Profit for the period 95 31 20 13 22 Profit attributed to the shareholders

In NIS Million *Including income 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