Meitav Investment House Ltd.

Annual / Quarterly Financial Statement • Nov 25, 2024

Meitav Investment House Condensed Financial Statements as of September 30*

This document is a partial unofficial translation for convenience only of the Hebrew original of the financial report of Meitav Investment House Ltd. as of September 30, 2024, that was submitted to the Tel-Aviv Stock Exchange and the Israeli Securities Authority on November 25, 2024. The Hebrew version submitted to the TASE and the Israeli Securities Authority shall be the sole legally binding version. For the details of the policy, )see the Company's immediate report dated August 19, 2024 (reference number: 2024-01-084447)

MEITAV INVESTMENT HOUSE LTD.

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2024

INDEX

	Page
Consolidated Statements of Financial Position	2 - 3
Consolidated Statements of Profit or Loss and Other Comprehensive Income	4
Consolidated Statements of Changes in Equity	5 - 9
Consolidated Statements of Cash Flows	10 - 12

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

		September 30,
	2024	2023	December 31, 2023
		Unaudited
		Audited NIS in millions
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	262	392	319
Short-term investments	313	642	648
Customer credit	1,738	1,469	1,541
Trade receivables	106	80	60
Other accounts receivable	105	60	48
Current taxes receivable	17	3	9
	2,541	2,646	2,625
NON-CURRENT ASSETS:
Investments of provident fund members	103	99	100
Investments, loans and receivables	984	689	650
Investments in associates	24	87	80
Fixed assets	165	44	169
Deferred taxes	67	29	46
Intangible assets	1,305	1,201	1,224
	2,648	2,149	2,269
	5,189	4,795	4,894

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

		September 30,
	2024	2023	December 31, 2023
	Unaudited		Audited
		NIS in millions
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Credit from banks and other credit providers	1,642	1,722	1,699
Liabilities for short sale of securities	42	40	50
Trade payables	114	100	124
Other accounts payable	281	226	193
Provisions for legal claims	670	630	637
Current taxes payable	48	38	66
	2,797	2,756	2,769
NON-CURRENT LIABILITIES:
Debentures	611	736	606
Credit from banks and other credit providers	437	206	299
Liabilities to provident fund members	110	105	105
Lease liabilities	130	11	123
Other accounts payable	-	2	2
Employee benefit liabilities	6	7	6
Deferred taxes	34	41	33
	1,328	1,108	1,174
Total liabilities	4,125	3,864	3,943
EQUITY:
Share capital	77	77	77
Share premium	635	635	635
Capital reserve for share-based payment transactions	47	41	42
Retained earnings	176	56	85
Other reserves	(132)	(118)	(117)
Equity attributable to equity holders of the Company	803	691	722
Non-controlling interests	261	240	229
Total equity	1,064	931	951
	5,189	4,795	4,894

November 24, 2024
Date of approval of the	Eli Barkat	Ilan Raviv	Einat Rom
financial statements	Chairman of the Board	CEO	CFO

CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Nine months ended September 30,		Three months ended September 30,		Year ended December 31,
	2024	2023	2024	2023	2023
			Unaudited		Audited
			NIS in millions (except per share data)
Revenue from management fees,
commissions and other, net	945	792	332	274	1,068
Income from non-bank loans activity	233	183	81	60	245
Total revenues	1,178	975	413	334	1,313
Income refund in respect of legal claims against the
Company	-	-	-	-	(3)
Total revenues	1,178	975	413	334	1,310
Marketing, operating, general and administrative
expenses	733	674	249	227	908
Finance expenses on non-bank loans	96	66	36	23	92
Operating income	349	235	128	84	310
Gain from securities held for investment purposes in
nostro portfolio, net	7	13	2	2	13
Finance income	18	21	6	8	27
Finance expenses	(74)	(75)	(28)	(23)	(96)
Other income (expenses), net	(3)	14	(3)	(5)	19
Company's share of losses of companies accounted for at
equity, net	(27)	(17)	(2)	(6)	(22)
Income before taxes on income Taxes on income	270 76	191 79	103 32	60 27	251 94
Net income for the period	194	112	71	33	157
Other comprehensive income (net of tax effect):
Actuarial gain on defined benefit plans	-	-	-	-	1
Foreign currency translation adjustments of foreign
operations	1	1	-	-	(2)
Total other comprehensive income	1	1	-	-	(1)
Total comprehensive income	195	113	71	33	156
Net income attributable to:
Equity holders of the Company	170	91	62	27	130
Non-controlling interests	24	21	9	6	27
	194	112	71	33	157
Comprehensive income attributable to:
Equity holders of the Company	171	92	62	27	129
Non-controlling interests	24	21	9	6	27
	195	113	71	33	156
Basic and diluted net earnings per share attributable to
equity holders of the Company (in NIS):
Basic net earnings	2.17	1.16	0.79	0.34	1.66
Diluted net earnings	2.17	1.16	0.79	0.34	1.66

	Attributable to equity holders of the Company
	Share capital	Share premium	Capital reserve from share-based payment transactions	Retained earnings	Other reserves	Total	Non controlling interests	Total equity
				Unaudited
				NIS in millions
Balance at January 1, 2024 (audited)	77	635	42	85	(117)	722	229	951
Net income for the period Other comprehensive income, net	- -	- -	- -	170 -	- 1	170 1	24 -	194 1
Total comprehensive income Dividend declared and paid	- -	- -	- -	170 (79)	1 -	171 (79)	24 -	195 (79)
Dividend to non-controlling interests Net purchases of non-controlling interests	- -	- -	- -	- -	- 2	- 2	(15) (13)	(15) (11)
Issue of capital and options to non-controlling interests (net of issuance expenses)	-	-	-	-	15	15	34	49
Transaction with non-controlling interest in an associate Derecognition of non-controlling interests due to	-	-	-	-	(33)	(33)	-	(33)
sale of subsidiary Share-based payment	- -	- -	- 5	- -	- -	- 5	(1) 3	(1) 8
Balance at September 30, 2024	77	635	47	176	(132)	803	261	1,064

	Attributable to equity holders of the Company
	Share capital	Share premium	Capital reserve from share-based payment transactions	Retained earnings (accumulated deficit)	Other reserves	Total	Non controlling interests	Total equity
				Unaudited
				NIS in millions
Balance at January 1, 2023 (audited)	66	505	31	(25)	(82)	495	243	738
Net income for the period Other comprehensive income, net	- -	- -	- -	91 -	- 1	91 1	21 -	112 1
Total comprehensive income Dividend declared and paid Dividend to non-controlling interests Issuance of capital	- - - 11	- - - 130	- - - -	91 (10) - -	1 - - -	92 (10) - 141	21 - (17) -	113 (10) (17) 141
Share-based payment Net purchases of non-controlling interests	- -	- -	10 -	- -	- (37)	10 (37)	2 (9)	12 (46)
Balance at September 30, 2023	77	635	41	56	(118)	691	240	931

	Attributable to equity holders of the Company
	Share capital	Share premium	Capital reserve from share-based payment transactions	Retained earnings Unaudited	Other reserves	Total	Non controlling interests	Total equity
				NIS in millions
Balance at July 1, 2024	77	635	46	133	(103)	788	268	1,056
Net income for the period Other comprehensive income, net	- -	- -	- -	62 -	- -	62 -	9 -	71 -
Total comprehensive income Dividend declared and paid Dividend to non-controlling interests Share-based payment Net purchases of non-controlling interests Transaction with non-controlling interest in an associate	- - - - - -	- - - - - -	- - - 1 - -	62 (19) - - - -	- - - - 4 (33)	62 (19) - 1 4 (33)	9 - (4) 1 (13) -	71 (19) (4) 2 (9) (33)
Balance at September 30, 2024	77	635	47	176	(132)	803	261	1,064

	Attributable to equity holders of the Company
			Capital reserve from share-based				Non
	Share capital	Share premium	payment transactions	Retained earnings	Other reserves	Total	controlling interests	Total equity
				Unaudited
				NIS in millions
Balance at July 1, 2023	77	635	38	39	(119)	670	238	908
Net income for the period	-	-	-	27	-	27	6	33
Other comprehensive income, net	-	-	-	-	-	-	-	-
Total comprehensive income	-	-	-	27	-	27	6	33
Dividend declared and paid	-	-	-	(10)	-	(10)	-	(10)
Dividend to non-controlling interests	-	-	-	-	-	-	(5)	(5)
Share-based payment	-	-	3	-	-	3	1	4
Net purchases of non-controlling interests	-	-	-	-	1	1	-	1
Balance at September 30, 2023	77	635	41	56	(118)	691	240	931

	Attributable to equity holders of the Company
			Capital reserve from
	Share capital	Share premium	share-based payment transactions	Accumulated earnings (deficit)	Other reserves	Total	Non controlling interests	Total equity
				Audited
				NIS in millions
Balance at January 1, 2023	66	505	31	(25)	(82)	495	243	738
Net income for the period	-	-	-	130	-	130	27	157
Other comprehensive loss, net	-	-	-	-	(1)	(1)	-	(1)
Total comprehensive income	-	-	-	130	(1)	129	27	156
Dividend declared and paid	-	-	-	(20)	-	(20)	-	(20)
Dividend to non-controlling interests	-	-	-	-	-	-	(21)	(21)
Issue of capital	11	130	-	-	-	141	-	141
Share-based payment	-	-	11	-	-	11	2	13
Net purchases of non-controlling interests	-	-	-	-	(34)	(34)	(22)	(56)
Balance at December 31, 2023	77	635	42	85	(117)	722	229	951

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine months ended September 30,		Three months ended September	Year ended December 31,
	2024	2023	2024	30, 2023	2023
			Unaudited		Audited
			NIS in millions
Cash flows from operating activities:
Net income for the period	194	112	71	33	157
Adjustments to reconcile net income to net cash provided by operating activities:
Adjustments to the profit or loss items:
Depreciation of fixed assets	22	24	7	8	33
Amortization of intangible assets Impairment loss from investment in	44	41	15	14	55
associate	-	7	-	-	7
Loss (gain) from sale of investment in consolidated subsidiary	(3)	5	-	-	5
Amortization of deferred acquisition costs	33	21	12	8
					29
Revaluation of investments to provident fund members	(3)	(2)	(1)	(1)	(3)
Revaluation of liabilities to provident
fund members	5	3	1	2	3
Company's share of losses of companies
accounted for at equity, net	27	17	2	6	21
Deferred taxes, net	(20)	(4)	(6)	-	(30)
Revaluation of debentures	9	11	4	3	12
Change in employee benefit liabilities, net	-	(1)	-	-	(1)
Gains from securities measured at fair
value through profit or loss, net	(25)	(18)	(5)	(6)	(14)
Change in short-term deposits	(6)	(3)	(1)	(1)	(3)
Share-based payment	8	12	2	4	14
Gain from decrease in interests in
associate	-	(39)	-	-	(39)
	91	74	30	37	89
Changes in asset and liability items:
Customer credit, trade receivables and
other accounts receivable	(625)	70	(112)	2	53
Short-term credit from giving non-bank
loans	382	102	24	5	161
Trade payables, provisions for legal
claims and other accounts payable	(14)	(116)	39	51	(86)
	(257)	56	(49)	58	128
Net cash provided by operating activities	28	242	52	128	374

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine months ended September 30,		Three months ended September 30,	Year ended December 31,
	2024	2023	2024	2023	2023
		Unaudited			Audited
			NIS in millions
Cash flows from investing activities:
Sale (purchase) of short-term investments measured at fair value through profit or loss	(13)	10	(8)	(15)	19
Repayment of restricted deposit	352	-	352	-	-
Purchase of fixed assets	(9)	(9)	(1)	(8)	(10)
Purchase of intangible assets	(43)	(34)	(14)	(9)	(46)
Change in restricted deposits, net	31	3	(11)	-	(8)
Investment in companies accounted for at
equity	(3)	(5)	-	(2)	(5)
Repayment of long-term loan	-	-	-	-	7
Sale of investments in subsidiaries (c)	1	(15)	-	-	(15)
Net cash provided by (used in) investing activities	316	(50)	318	(34)	(58)
Cash flows from financing activities:
Issuance of capital	-	141	-	-	141
Repayment of debentures	-	-	-	-	(132)
Receipt of long-term loans from banks	138	100	13	100	151
Repayment of subsidiary's debentures	(148)	(222)	-	(74)	(294)
Issuance of capital and options to non
controlling interests	49	-	-	-	-
Dividend paid to the shareholders of the
Company	(79)	(10)	(19)	(10)	(20)
Dividend paid to non-controlling interests	(15)	(17)	(4)	(5)	(21)
Repayment of long-term lease liabilities	(18)	(21)	(7)	(7)	(26)
Purchases of non-controlling interests	(18)	(29)	(11)	(10)	(73)
Repurchase of subsidiary's shares by the
subsidiary	(1)	(3)	-	-	(12)
Proceeds from short purchase of securities,
net	(16)	(40)	-	(39)	(40)
Short-term credit from banks, net	(293)	5	(361)	(15)	33
Net cash used in financing activities	(401)	(96)	(389)	(60)	(293)
Increase (decrease) in cash and cash
equivalents	(57)	96	(19)	34	23
Cash and cash equivalents at the beginning
of the period	319	296	281	358	296
Cash and cash equivalents at the end of the period	262	392	262	392	319

CONSOLIDATED STATEMENTS OF CASH FLOWS

		Nine months ended September 30,		Three months ended September 30,		Year ended December 31,
		2023	2022	2023	2022	2022
		Unaudited				Audited
		NIS in millions
(a)	Additional information on cash flows from operating activities:
	Cash paid during the period for:
	Interest	79	98	23	28	110
	Taxes on income	100	51	23	6	94
	Cash received during the period for:
	Interest	286	255	105	99	291
	Taxes on income	3	4	3	3	5
(b)	Significant non-cash operations:
	Purchase of non-controlling interests for deferred consideration against loan repayment	-	19	-	(5)	17
(c)	Sale of investments in subsidiaries:
	Working capital (excluding cash and cash equivalents) Intangible assets	(2) -	(11) 1	- -	- -	(11) 1
	Total assets and liabilities of the subsidiary on date of sale	(2)	(10)	-	-	(10)
	Capital gain (loss) from sale of subsidiaries	3	(5)	-	-	(5)
		1	(15)	-	-	(15)