Clal Insurance

Investor Presentation • Aug 21, 2024

Financial Statements

June 2024

Waiver

This presentation contains only partial information regarding the Company's results for the January to June 2024 period and was prepared for summary and convenience purposes only. The presentation cannot be in lieu of reviewing the reports published by the Company for the public (including its financial statements), which include the complete information about the Company, before making a decision to invest in the Company's securities. In the event of any discrepancy between that stated in the presentation and that stated in the Company's official reports, that stated in the said reports will prevail.

Any forward-looking forecast and/or statement (as forward-looking information is defined in the Israel Securities Law, 1968) provided, if any, by way of this presentation, is based on the Company's management's assessment according to its discretion, and involves uncertainty, including factors that are beyond the Company's control, each of which or a combination of them, as well as materialization of any of the risk factors typical of the Company's operations, may lead to the said forecasts and/or assessments not being realized or being realized materially differently than expected.

This presentation does not constitute an offer to acquire securities of the Company, or an invitation to receive such offers, and is intended for the provision of information only, as part of providing explanations about the Company.

Introduction

First and foremost we long for the return home of all hostages.

319 days have passed since the outbreak of the Iron Swords War and we are moved by the resilience of the Israeli spirit, which has never wavered.

The institutional entities are even more important in those times; they play a significant role in maintaining the resilience of the State of Israel.

We salute all IDF soldiers and the security forces for defending our safety with valor and determination, and hope that peace and security will prevail soon.

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The Israeli Economy Robust Macroeconomic Data

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The Israeli Insurance and Credit Market Key Drivers

Fertility rate, average no. of children per woman

Penetration rate - insurance products (%)

Expenditure for private consumption per capita (NIS thousand)

This is a significant growth engine in the credit card industry. One can see a growth rate of approx. 50% per decade, with an average annual growth rate of approx. 2.7% per annum.

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H1/2024 Continues to Reflect the Realization of the Group's Strategy

In 2023, Clal Holdings Group completed the acquisition of credit card company Max, and it is currently benefiting from two significant pillars - the Insurance and Long-Term Savings Segment and the Credit Cards Segment. Thus, Clal Holdings is accelerating its change from a legacy insurance company with a significant bias towards traditional Long-Term Savings and Long-Term Care products, to a financial holding group with diversified sources of income and profit.

It is apparent that Max group is well incorporated in Clal Holdings Group in its capacity as a leading institutional entity in Israel, and that its strong results contribute significantly to the Group's growth.

The improvement in income in H1 arises from a marked improvement in the business activity income, which was partially offset by low real returns in the capital market compared to last year.

Group Results - Highlights

As for the Economic Solvencer 3, 2024, a new outline taking into account the fair value of future variable management fees as part of the evisities copital is expected be ent into effect of this utiline is estimated at an additional taking into account the Transitional Provisions, and with an additional ate of aprov. 9%, taking into account the Transitional Provisions.

Main Trends Continued Improvement Across the Company's KPIs

With added contributions towards benefits and investment contracts

Attributable to shareholders

Attributable to shareholders

Key trends

Comprehensive income, after tax of approx. NIS 320 million in Q1, a substantial increase
compared with the corresponding halt last year

Comprehensive income, after tax of approx. NIS 157 million in Q2, despite low real returns in the capital market compared with last year

Comprehensive income, before tax of approx. NIS 405 million in Insurance and Savings in the first half, more than twice the corresponding period last year, in which it stood at approx. NIS 173 million

Improvement of underwriting income across all insurance subsegments, mainly the Property & Casualty Insurance and the Health Insurance Segments

Comprehensive income, before tax of approx. NIS 206 million in the Credit Card Segment during the first half, thanks to superb results for Max, mostly in the current quarter

Excess capital of approx. NIS 0.9 billion in Clal Insurance, which translates into a solvency ratio of 109%, very close to the dividend distribution threshold (as of December 2023)

Structure of main holdings

Diversified activity in the fields of insurance and long-term savings, credit cards and insurance agencies

Operating Segments

P&C Insurance

comprises five subsegnents: Liability - Compulsor and Other Liability (which mainly includes third-party liability insurance products; Property -Motor Property, Credit Insurance and Other Property (including remaining property subsegments other than motor and lability as well as other insurance subsegments, such as guarantees).

Health Insurance

comprises the Group's activity in the Heath Includes LTC (individual and collective) and Ilnesses and Hospitaliation (which includes medical expenses, surgeries and transplants, personal accidents and travel),

Long-Term Savings

includes the Group's activity in the life insurance, pension funds subsegments. The segment includes long-term savings as well as insurance coverage of various risks such as death and disability insurance

includes credit cards operating results, divided into two main areas of activity: issuance and acquiring.

other

Mostly includes own agencies and investment in Michlol

Activity that is not assigned to segments

consists of the Group's headquarters, which mainted in the line finance expenses for Max's aquisition) and assets outside the insurance or credit card businesses, and amortization of Max's excess cost

Equity capital

Return on equity of approx. 7.5%, despite the challenges arising from the War and capital market

NIS million

* Return on equity, annualized

Comprehensive income after tax, by operating segment - H1/2024

NIS 268 million in comprehensive income after tax, with diversification of income sources and substantial growth in insurance income

Comprehensive income after tax, by operating segment in Q2/2024

The Company made a profit of approx. NIS 157 million after tax, with a market improvement in the underwriting income, against a challenging capital market

Assets Under Management

Growth of Approx. 48% in Assets Under Management Since December 2020

NIS billion

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Scope of the Insurance and Long-Term Savings Activity

Strong Growth in Core Activity (Pension, P&C And Risk) Against a Run-Off in Executive Insurance and a Decrease in Proceeds from Investment Contracts

Premiums earned, gross, contributions towards benefits and proceeds in respect of investment contracts, NIS billion

Compliance with Solvency Requirements and Management's Policy - Clal Insurance A Solvency Ratio of 109% as of December 31, 2023

Excess/deficit capital for solvency and solvency ratio purposes* (NIS million, %)

As from the Economic Solvency Patio Report a of December 31, 2014 a new of the fair value of future variable management fees as part of the eisting capital is enter into effect of this outline is estimated an addicional rate of apport 19%, without taking into account the Transitional Provisions, and with an additional rate of approx. 9%, the Transitional Provisions.

Returns on Own (Nostro) Assets*

Compared to Leading Competitors, Clal Leads in Returns on Nostro Assets and Has Been Ranked among the Top in Recent Years

* Compared to the five major insurance companies; net of revalued own-use real estate properties

Strong Growth of Approx. 13% in Gross Premiums, Mainly in the Property Subsegments, While Continuing to Improve Liabilities

Premiums, gross, NIS million CAGR +12% ) 3,596 3,275 2,942 2,592 2023 2020 2021 2022

P&C Insurance

2,146 +36 1,905 (+10%) -29 396 (-10%) 360 301 272 H1/2023 H1/2024 H1/2023 H1/2023 Compulsory Motor P&C Insurance Liability and other Insurance +151 (+27%), (+13%) 704 706 553 623 દિવેલા ગુજરાત રાજ્યના તાલુકામાં આવેલું એક ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં મુખ્યત્વે ખેત-ઉત ୧୫ H1/2023 H1/2023 H1/2024 Motor Property Other Property Credit Insurance

P&C Insurance Increase of Approx. NIS 225 Million in Comprehensive Income, While Substantially Improving the Underwriting Income

Comprehensive income, before tax, by operating segment, NIS million

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Growth in the Individual Illnesses and Hospitalization Subsegment Compared to a Run-Off in the Long-Term Care Subsegments

Health Insurance

Premiums, gross, NIS million +5% 894 852 745 702 +10% CAGR ) 1,731 1,603 1,408 1,293 655 Individual 601 (0) 139 139 10 101 90 | Collective H1/2023 H1/2023 H1/2023 2020 2021 2022 2023 Health Illnesses and Individual Long-Collective Long-Term Care Insurance Hospitalization Term Care

Ansion

and

provident

cards

Increase in Comprehensive Income as a Result of Underwriting Improvement in the Individual Insurance Subsegments and the Release of Reserves in the Long-Term Care Subsegment Due to the Increase in Interest

Comprehensive income, before tax, by operating segment, NIS million

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H1/2023

H1/2023

H1/2024

Movement

1. The increase in income arises from a decrease of approx. NIS 35 million before tax in the interest rate effect

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Illnesses and hospitalization} Individual Long-Term Care² Collective Long-Term Care

(6)

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64

Health Insurance

4 (2)

(6)

H1/2024

Ansion cards and provident

Long-Term Savings Strong Growth in Pension Contributions, Alongside Continued Run-Off in Life Insurance (Executive Insurance) and a Decrease in Proceeds from Investment Contracts

Premiums earned, gross, contributions towards benefits and proceeds in respect of investment contracts, NIS billion

Long-Term Savings Decrease in Income from Life Insurance Mainly Due to Revision to the Mortality Tables

Comprehensive income before tax, by operating segment, NIS million

1. The decrease in income arises mostly from an increase of approx. NS 59 million due to revision of the effects of revising the pension uptake rate on retirement for the Hassneh transaction

Credit Cards - Max's Results1 Increase in Pre-Tax Income Despite the Iron Swords War

P&C Health Life Pension Credit Other and cards provident

Profit before tax, NIS million

1. The results of Max were consolidated under the segment as from April 1, 2023

2. One-off selling expenses arising from the completion of Clal Holdings' acquisition transaction

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Credit Cards - Max's Results vs. the Competition Max Leads in Return on Equity, Credit Portfolio Size and Quality

Return on equity and net income2 (%, NIS million)

Credit portfolio, NIS billion

1. Net of one-off effects

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Credit Cards - Max's Results vs. the Competition Realization of Growth Strategy in Non-Banking Cards

No. of active cards, millions of units

Credit Cards - Max's Results vs. the Competition Realization of Growth Strategy in Non-Banking Cards

Issuance Turnover - Non-Bank Cards, NIS billion

Other Segment Growth of Approx. 53% in Comprehensive Income in the Past Three Years, Mostly in Respect of Own Agencies

Income from fees and commissions, NIS million

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