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 Total Bond Shareholders • Assets Under Meitav Dash is a public company with Rating Equity extensive experience and expertise in financial Management 133 133 823 823 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 30/9/18 As at 30/9/18 In the Market Dividend TA-125 Index Value Distribution Policy 125 125 Shares BRM, 50 50% 742 742 held by 29.41% the public, 39.82% Zvi Stepak, At least 28.38% NIS Million of net profit As at 30/9/18 As at 27/9/18 2

Range of Products and Services Asset Management Activities 26.2 26.2 52.6 52.6 18.2 18.2 32.3 32.3 Portfolio Provident, Study Mutual ETNs and Pension Funds Management Funds AUM as at 30/9/18 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 3.7 Portfolio Management 18.2 Provident Funds, 133 Study Funds and Pension Funds 52.6 Mutual Funds Billion 32.3 NIS ETNs As at 30/9/18 26.2 Other = Mutual funds under hosting and distribution arrangements 4

Selected Financial Data Q3 2018 Revenue Normalized EBITDA Other Non Bank Non Bank 2% Loans- Other Trade & Loans- Peninsula 6% Brokerage Peninsula 6% 10% 12% Trade & Brokerage 65 231 11% Provident Funds, Study Provident Funds and Funds, Study Pension Funds and Funds ETNs Pension NIS 17% 17% NIS Funds ETNs 35% 32% Million Million Mutual Funds & Portfolio Management Mutual Funds & Portfolio 27% Management 25% Other = Insurance Agencies, Global Markets, Meitav Dash Loans and other activities 5

Selected Financial Data Q3 Q2 Q1 Q3 2017 2018 2018 2018 2017 Revenue 231 221 216 209 874 175 Expenses 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 FFO EBITDA Profit for the period 25 Profit before tax 41 18 Depreciation and amortization 18 Depreciation and amortization ( 2 ) Deferred taxes Financing expenses, net 8 1 Revaluation of debentures EBITDA 67 ) 2) Other 40 In NIS Million FFO *Including income from revaluation to fair value of TASE shares 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 10 0 NIS Million 7

Long Term Vision Decreasing Dependence on the Capital Markets 14% 23% 26% 40% 1-9 2020- 2015 2017 2018 2022 60% 77% 74% 86% Revenue from asset management activities Revenue from non bank loans, insurance, trade, brokerage and others 8

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 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 assets of change in assets drawdown 12/2012 30/9/2018 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 19,788 18,259 -7.7% -1.4% 23.2% -54.5% (+Menora**) 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% 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 9

Segment Analysis 10

Provident, Study & Pension Funds Market Share AUM 8.9% 8.9 21.9 21.9 52.6 52.6 Study Funds Provident Funds 21.5 21.5 NIS Billion 9.2 9.2 Pension Funds • One of the selected pension funds in MOF Q3 Q2 Q1 Q3 2017 tender for the second time 2018 2018 2018 2017 • The largest pension fund among investment AUM 52,590 51,211 50,574 49,620 50,770 houses, with assets of NIS 9.2 billion and annual deposits of over NIS 1.5 billion Revenue 80 80 81 83 338 • Full advanced digital platform for joining Annualized 0.61% 0.63% 0.64% 0.67% 0.68% Management Fees investment provident funds Operating Profit 8 11 13 12 48 NIS Million As at 30/9/18 11

ETNs Market Share AUM 26.2 26.2 27.6% 27.6 NIS Billion • Wide range of products Including 49 tracking funds Q3 Q2 Q1 Q3 (included in mutual fund assets) with annual 2017 2018 2018 2018 2017 revenues of over NIS 10 million AUM 26,154 25,623 26,149 27,741 28,361 • Professionalism and high trading capabilities Revenue 39 31 21 23 113 • Shift from ETNs to ETFs to be completed by end of 2018 Annualized 0.60% 0.48% 0.30% 0.34% 0.41% Management Fees • Merger of Tachlit Indices and Meitav Dash Mutual Funds announced Operating Profit 20 13 4 6 46 NIS Million As at 30/9/18 12

Mutual Funds & Portfolio Management Market Share AUM Mutual Funds AUM Portfolio Mutual Funds Management 13.3% 13.3 32.3 32.3 18.2 18.2 22.6 22.6 Traditional Funds 5.2 5.2 Money Market Funds NIS Billion NIS Billion 4.5 4.5 Tracking Funds Q3 Q2 Q1 Q3 2017 2018 2018 2018 2017 • Since the beginning of the year, all AUM Mutual Funds 32,321 30,555 29,246 28,852 29,492 mutual funds of Meitav Dash have grown by NIS 3 billion, while the mutual fund AUM Portfolio Management 18,218 17,738 17,578 17,534 17,690 Industry has suffered redemptions. Revenue 57 54 54 54 218 • Alternative product growth : Annualized management fees from 0.86% 0.86% 0.87% 0.89% 0.89% Consumer Credit Fund (Pagaya), traditional funds* Annualized management fees from Real Estate Funds, 0.15% 0.15% 0.15% 0.15% 0.15% money market funds Investment in Liquidity Capital Annualized management fees from 0.33% 0.33% 0.33% 0.33% 0.33% (specializing in the acquisition of future portfolio management revenues of growth companies) Operating Profit 20 19 19 19 80 NIS million As at 30/9/18 * Excluding tracking funds 13

Trade & Brokerage Of the trading Customer Assets 13.2 13.2 7.0 7.0% 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. Q3 Q2 Q1 Q3 2017 2018 2018 2018 2017 • Mergers and Acquisitions: - A-Broker transaction in 2016 Revenue 25 26 25 19 77 - Completion of the Bank of Jerusalem 6 9 7 5 21 transaction in the first quarter of 2018 Operating Profit NIS Million As at 30/9/18 14

Financial Statements 15

Balance Sheet As at As at As at As at As at As at 30/9/18 30/9/17 31/12/17 30/918 30/9/17 31/12/17 Credit from banks and others 483 424 416 Cash and short-term investments 592 587 492 ETNs, liabilities and deposit 26,122 27,710 28,329 28 ,981 Current investments to cover ETNs 26,688 28,331 Other current assets 765 685 664 Current liabilities of special purpose subsidiaries 536 598 621 to cover ETNs, liabilities and deposit Total current assets 28,045 29,603 30,137 Long term investments 180 159 163 Liabilities for short sale of securities 35 35 29 1 ,190 Fixed assets and intangible assets 1,187 1,196 Trade and other payables 243 181 204 Total current liabilities 27,419 28,948 29,599 Deferred taxes 15 12 10 Loans from banks 99 106 106 Total assets 29,427 30,970 31,500 Debentures 785 787 683 NIS Million 184 Other long term liabilities 177 198 Equity 823 801 802 Net d ebt Debt to EBITDA Net debt Debt to EBITDA excluding excluding Non-controlling interests 124 130 126 Peninsula Peninsula Total liabilities and equity 29,427 30,970 31,500 1.4 806 3.3 310 In NIS Million 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 16 Amounts in respect of ETNs