The Phoenix Holdings Ltd.

Investor Presentation • Aug 25, 2022

2022 Q2 Phoenix Holdings

Financial Review

This presentation does not constitute an offer to purchase the Company's securities or solicitation to receive such offers and is designed solely to offer information as part of the Company's explanations regarding its H1 2022 financial reports.

This presentation includes information regarding the Company's strategic plan for the years 2022-25 as well as forward-looking information as defined in section 32A of the Securities Law 5728-1968.

The realization and/or non-realization of forward-looking information which is stated in the financial reports and this presentation will be affected by risk factors that characterize the activities of the Company and group companies, as detailed in the Company's periodic reports, including changes in economic conditions, capital market in Israel and globally, the development of competition in the segments relevant to the group's activities, regulatory changes, changes in consumer preferences and consumption habits, changes in working assumptions or in the economic models and assumptions, and changes in implementation or execution – that can not be estimated in advance and may not be controlled by the Company. Hence, there is no certainty that the actual results and achievements of the Company in the future will be in accordance with these views and may differ, also substantially, from those presented in this presentation.

Furthermore, the presentation includes data and assessments based on external sources, the contents of which were not independently tested by the Company and therefore the Company is not responsible for their accuracy.

This presentation was drafted for the sake of convenience and needs to be reviewed along side with the Company's public reports, including 2022 Q2 Financial Statements, which contain the complete information about the Company, before making any decision to invest in the Company's securities.

This presentation may include information that is presented differently from the way it was presented in the company's official reports, some information may be presented and/or categorized and/or edited and/or segmented differently from the company's official past reports.

For the avoidance of doubt, the Company does not undertake to update or change the information contained in this presentation.

Agenda Highlights

Financial Results

Segment Breakdown

Appendix

Glossary

Phoenix Holdings at a Glance

(1) As of August 22, 2022

(2) Five-year period (2017-21 end of year for AUM growth, H2/2017-H1/2022 for ROE)

(3) As of December 31, 2021, with transitional measures; includes events post report date of dividend distribution from Phoenix Insurance to Phoenix Holdings, raising Tier 2 capital, and real estate ("Phoeniclass") transfer

(4) Based on average yields over 3 years ended 30.06.2022 in the general plans: #1 out of 5 in Policies (1991-2003), #1 out of 5 in Pension, & #3 out of 10 in Provident Funds

Israeli Economy: Impact of Global Volatility in H1 2022

8.1%

Increased volatility in 2022…

Macro trends: Continued GDP growth at 6.8% in Q2 (annualized); increased inflation and interest rates

Capital Markets: Increased volatility with declines in Q2

…but strong long-term trends

Wealth accumulation:

Continued AUM contributions despite market volatility

Innovation: Vibrant tech ecosystem, #1 startups per capital, #1 R&D investment as percent of GDP ¹ , despite changing market conditions

Long-Term Yields (10Y) ⁵ Percent

¹Israel Securities Authority

²Israel Central Bureau of Statistics

³ World Bank, current USD, 2021

⁴ Bank of Israel (2021 figure is an estimate), including life insurance, pension, and provident funds

⁵ Bloomberg (inflation for 2022 is actual 6 months not annualized; long-term yields based on Israel 10-year government bond, not CPI-linked for the past 12 months)

Income

• 1. Profitable growth in core businesses including benefits/contributions (+36% YOY) and comprehensive income
  • 11.4% H1 ROE despite negative Nostro yields
  • Financial group resilience & diversification as part of strategic execution, with growing income from asset management, agencies, and credit (99 NISm in Q2 and 193 NISm in H1)
  • Stable AUMs due to net inflows, despite capital market declines
• 2. Semi-annual dividend distribution of 160 NISm announced in line with dividend policy
• 3. Capital market impact partially offset by positive interest rate impact and special items, with improved investment performance since July
• 4. Life segment special items included positive take-up rates study partially offset by updated mortality rates (+98 NISm net impact pre-tax)

(*) Reclassification, for details see Appendix

Notes: Additional Core Businesses includes Pension & Provident (previously held under the insurance company), Investment Services (formerly Financial Services, primarily Excellence), Agencies, and Gama. Investments include yields and variable management fees above / below real 3%. For the convenience of the presentation, the statutory tax rate in insurance and the core fee business is used, while the difference between the actual tax and the statutory tax is recorded in Special Items respectively. See Glossary for definition of Special Items.

Equity Generation and Dividend Distribution

Value Drivers

Growth Engines

Insurance

Asset Management

Distribution (Agencies & More)

Credit

Accelerated Growth

Accelerating growth while shifting mix to high-ROE, capital-efficient businesses (P&C, asset management, distribution)

1 2 3 4

Innovation & Efficiency

Deepening sustainable competitive advantage with 1 NISb investments in technology (data, digitization, products) during plan

Active Management

Optimizing group portfolio, management, structure, and synergies to unlock and create value

Capital Management

Deploying capital against strategic priorities, reducing volatility and ensuring long-term cashflow generation

Strategy Execution: 2022 H1 Highlights

1 Accelerated growth in high-ROE activities 2 Innovation and efficiency

• P&C: 21% growth in P&C premiums, driven in part by growth in Smart direct car policies (compulsory & property together)
• Asset management: Continued inflows despite negative market performance
• Agencies: 39% growth in revenue in the last year

• Credit: 68% growth in Gama credit portfolio

• Technology: (1) Product innovation: Launch of "Smart Travel" insurance mobile app; (2) Digitization: Continue to achieve targets; (3) Data & Analytics: strengthened data unit, successful implementation of analytics risk tool in luxury vehicle underwriting
• Efficiency: consolidation of pension and provident fund operations / back office with life insurance operations; increase in online users and use of digital channels
• Clients: received highest satisfaction scores in 6 of 12 categories among large insurers for 2021
• ESG: published first full report, Platinum rating from "Maala"

3 Active portfolio / group management 4 Capital management & optimization

• Alternative investment offering: growth of offering and AUMs focusing on private clients; structural change moving relevant activities under Phoenix Advanced Investments
• Gama: Organic growth of all activities, focusing on SME credit; strengthened balance sheet with equity and debt
• Agencies: inorganic as well as organic growth
• Excellence: structure optimization and management appointments
• Dividend: Announced distribution of 160 NISm; Insurance increased minimum Solvency threshold for dividend distribution from 108% to 111% (without transitional measures)
• Reinsurance transaction: Optimized insurance equity using PHI transaction (recognized Q4 2021)
• Phoenix Capital: Control and unlocking value
• Dynamic investment management for risk-adjusted returns (e.g., inflation, interest rates, capital markets)
• Buyback: executed 56 NISm purchases out of 100 NISm plan

target

• Continued strategic execution toward targets

• Dynamic management of interest and capital markets exposure for risk-adjusted returns

* 6-month yield (not annualized)

Note: Mid-term Targets based on 5-year plan 2020-25 and assuming 3% return on investments. ROE target range assumes 3-5% return on Nostro investments. Actual performance will depend on financial | ¹⁴ markets, macroeconomic growth, industry trends, company performance and other variables

		P&C					Expense	Ratios2
Premiums NISb				Including growth of Smart direct
				4.2-4.8			P&C	Health	Life
	3.2				2019		4.10%	5.57%	0.50%
2.9		2.0 1.6			2020		5.08%	5.82%	0.49%
					2021		4.40%	5.50%	0.41%
					H1/22		3.71%	5.12%	0.40%
							3.4-3.7%	5.4-5.8%	0.27-0.30%	Mid-term target (2025)
2020	2021	H1/21	H1/22	mid term target (2025)			3.2 premiums	2.7 premiums	97 AUM	Base 2021 (NISb)
		Solvency	1				Comprehensive Income
Ratio					NISm		3% real returns, without special items, after tax
192%	190%									739
				150-170%		504		418
					330			284
2020	2021			Solvency target	2020	2021		H1/21 H1/22		mid-term

1 Solvency ratio with transitional measures; target range based on reduced transitional measures over time

2 Expenses as percent of gross earned premiums (P&C and Health) and AUMs (Life); expenses include general and administrative expenses, as well as other expenses; Health mid-term targets without HMO activity Note: Mid-term Targets based on 5-year plan 2020-25 and assuming 3% real return on investments

target (2025)

Note: Mid-term Targets based on 5-year plan 2020-25 and assuming 3% return on investments

Managing in Volatile Markets in 2022

Growth, Income, & Resilience: Quality Businesses

• Continued strategic execution, driving diversification, stability, and continued growth
• Investing in capabilities
• Dynamic investment management for riskadjusted returns (e.g., inflation, interest rates, capital markets)
• Assessing strategic opportunities

Agenda Highlights

Financial Results

Segment Breakdown

Appendix

Glossary

Comprehensive income before tax 2022 H1, NISm

Net negative 451 NISm pretax financial margin

• Capital market exposure compared to 3% real annual
• returns (-3.4% nostro real yield in H1) • Interest rate increase (pre-tax), increase of 287 NISm compared to H1 2021 1-6/21 423 28 67 102 16 2 787 (62) 289 1,652 Diff 199 27 5 39 8 9 (2,358) 1,182 (24) (913) 233 156 141 156 84 Other Interest )989( )379( )38( 739 4 397 Investments income (*) 72 24 655 14 Total Income 1-6/22 ^{75 22} 1,120 Special items 537 70 77 )10( 160 Insurance underwriting profit 42 Tax (1,571) Miniority 55 265 )159( Pension and provident Investment services Agencies 11 Credit 622 68 Capital market and other influence -186 Income from operations +925

925 NISm income from operations

Comprehensive income before tax 2022 Q2, NISm

P&C Health Life

Other Equity Returns Pension and provident

Comprehensive income before tax 2022 H1, NISm

Additional core businesses contributed 408 NISm out of 739 NISm income before tax

Q2 Income by Segment

Comprehensive income before tax 2022 Q2, NISm

• 7.9% ROE

Capital

• P&C: underwriting income improvement vs. negative capital market impact
• Health: positive interest rate impact
• Life: take-up rate study, partially offset by updated mortality rates

Additional core businesses contributed 277 NISm, driving group income for the quarter

| ²²

Phoenix Holdings NISm	31/12/2021	30/06/2021	30/06/2022	Difference 12/21-6/22
Cash	2,154	2,105	2,459	305
Intangible Assets	2,775	2,655	2,919	144
Deferred acquisition costs	2,011	1,870	2,281	270
Investments in associates	1,346	576	1,474	128
Investment property - other	1,125	1,061	1,038	-87
Credit for purchase of securities	2,550	2,284	3,208	658
Other Assets	5,804	7,328	6,933	1,129
Other Financial Investments	28,698	27,654	30,580	1,882
Assets for yield-dependent contracts	97,117	87,343	95,217	-1,900
Total Assets	143,580	132,876	146,109	2,529
Financial liabilities	8,813	8,814	13,432	4,619
Liabilities in respect of non-yield-dependent insurance contracts and investments contracts Liabilities in respect of yield-dependent	25,113	24,297	25,316	203
insurance contracts and investments contracts	95,629	86,163	93,115	-2,514
Other Liabilities	4,102	4,668	4,184	82
Total equity	9,923	8,934	10,062	139
Total equity and liabilities	143,580	132,876	146,109	2,529

Agenda Highlights

Financial Results

Segment Breakdown

Appendix

Glossary

Life Investment Other Services Other Equity Pension Provident Health Agencies Credit P&C

• Negative contribution of P&C due to impact of capital market returns

• Motor property negative impact of increased claim frequency
• 21% growth in premiums overall, driven by agencies and Smart direct business
• Positive underwriting profit for Q2 and H1 driven by improved performance, including in motor:

Underwriting Profit	Q1	Q2	H1
Compulsory Motor	10	35	44
Motor Property	-64	-35	-96
Property & Other	37	31	68
Liability	19	42	61
Total	2	73	77

(*) Reclassification, for details see Appendix.

Note: The underwriting profit assume a real rate of return of 3%, investment income includes income from corporate account (Nostro) above or below a 3% real return

• Income growth mainly due to LAT reserves (increase in riskfree interest rates) offset by capital market effects, as well as improved underwriting profit
• Special items include the profit from real estate ("Phoeniclass") transfer under the LTC reserve
• LAT reserve remaining after H1 477 NISm

(*) Reclassification, for details see Appendix.

Note:The underwriting profit assume a real rate of return of 3%, investment income includes income from own (Nostro) investments above or below a 3% real return. LAT interest - Including all changes in interest rate and excess non-marketable assets in LAT only | ²⁶

(*)

(*)

• Positive impact of increasing interest rates
• Decrease in income compared to 2021 due to capital market declines and impact on variable management fees
• Special items includes take-up rate study positive pre-tax impact of 462 NISm, partially offset by updated mortality rates negative impact of 364 NISm: net impact of +98 NISm income before tax and +12 to +18 points Solvency (with transitional measures)

• Negative impact of financial market declines • Financial margin increase due to CPI index changes

compared to 2021

• Continued organic growth
• Improvement in profit from operations due to synergies from Halman-Aldubi acquisition and economies of scale on fixed cost base
• Special items include sale of IRA activities acquired from Halman-Aldubi

Q2/2022

Q2/2021

Diff 44

34

10

• Improvement in profit from operations from Excellence
• Segment includes growing "Phoenix Advanced Investments" alternative investment platform including Phoenix Capital, Halman Aldubi, and Excellence alternative activities; special items include control of Phoenix Capital with one-time profit of 86 NISm
• Excellence market making margin transactions opposite banks

80

(3)

83 124

31

93

• Increased profit from operations driven by continued strategic execution, with strong growth and scale economies
• Special items include profit from obtaining control in midsized agency

future

| ³²

• Segment includes Phoenix Holdings solo profits (including RT1 holding) as well as other items
  • Financial margin increase mainly due to CPI index changes

			(9)
	20				11
	Financial Margin	Subsidiaries	Other	Special Items	1-6/22
1-6/2021	11	(1)	(8)	-	2
Diff	9	1	(1)	-	9
Q2/2022	12	-	(4)	-	8
Q2/2021	2	(1)	(6)	-	(5)
Diff	10	1	2	-	13

Agenda Highlights

Financial Results

Segment Breakdown

Appendix

Glossary

Returns - Insurance Nostro / Corporate Account Percent (nominal)

• Team of over 100 professionals across group, managing corporate account and client assets
• Proactive and proprietary dealflow and sourcing (Partner, Acro, and more)
• Investing in capabilities including international investments and technology platforms
• Group plans based on 3% real returns and stable rates

Investment performance & track record Responsible allocation & risk management

Asset Allocation - Insurance Nostro / Corporate Account Percent (Q2/22)

• Balanced asset allocation
• International investments (equity, debt & real estate) with leading partners, co-investments, and direct positions
• Full range of asset classes including fixed income, equities, real estate, and alternatives

Phoenix Holdings – Investment Highlights

Unique opportunity in a growing, underpenetrated market with barriers to entry

Strong demographic & wealth trends with high compulsory savings rates & potential for greater penetration

Strong market position with distinctive growth & performance through the cycle

Leading diversified financial services group with over \$100b AUM (including multi-line insurance, asset management, credit, & distribution), delivering best-in-class 15% ROE and 18% AUM CAGR over the past 5 years

Value creation driven by diversified activities with untapped potential

Significant share of income generated by recurring fee-based non-balance sheet businesses, with plan to unlock value of assets currently held at book value

Proven strategic plan with focus on growth, innovation, & value creation

Focus on accelerating growth in high ROE businesses, innovation and technology for competitive advantage and efficiency, active management of businesses to unlock & create value, & focused capital management / deployment

Leading financial results & organic capital generation, driving strong and resilience balance sheet

Consistent growth in shareholder equity with a Solvency ratio of 190% (with transitional measures) and 30% dividend distribution policy

Experienced leadership team backed by strong governance

Deep sector and broad functional experience at both board and management levels

5

1

2

3

4

Below is an explanation of reclassifications effecting the Health and P&C segments:

• Health: As of 2022 Q1 financials, the Health segment reclassified earnings within the segment's internal breakdown, primarily between underwriting and investment income due to the use of a 3% real return for the LAT (Liability Adequacy Test) reserve for the individual long-term care activity (consistent with the use of 3% real returns across other activities)
• P&C: As of 2022 Q2 financials, part of the UGL (Unrealized Gains and Losses) component of P&C underwriting profit was categorized as interest rate effects

For consistency, comparative figures were reclassified as well

Below is a summary of the impact of the reclassification on 2021 income, showing the figures before and after reclassification:

Comprehensive Income Before Tax		H1/2021		Q2/2021	2021
(NISm)	Before	After	Before	After	Before	After
Health
Underwriting	77	117	42	74	168	250
Investments	46	7	10	(12)	123	41
Special items	(50)	(51)	(30)	(40)	(152)	(152)
P&C
Underwriting	180	172	108	102	285	277
Interest	-	8	-	6	-	8

Agenda Highlights

Financial Results

Segment Breakdown

Appendix

Glossary

AM	Asset Management; i.e. Excellence Nessuah
AUM	Assets Under Management; the total market value of all the investments that are managed by the Group
Bps	Basis Points; 1 basis points is .01%
CGU	Cost Generating Unit
CI	Comprehensive Income
CLR	Combined Loss Ratio
CO	Corporate, Other and Consolidation
CPI	Consumer Price Index; measures the average change of prices in an agreed upon basket of consumer goods and services over time
CSM	Contractual Service Margin
D&O	Directors and Officers Liability Insurance
DAC	Deferred Acquisition Cost
ESOP	Employee Stock Ownership Plan; workplace benefit program, that provides the employees with ownership interest in the company.
ETF	Exchange Traded Fund; an open end, tradable basket of securities that tracks an underling index, sector, or security type
Fixed-Rate Gov Bonds	A government issued bond for which the interest income payment is agreed upon and does not change
FX	Foreign Exchange Currency
Gama	Financial services and credit company owned by the Phoenix Group
Halman corporate funds	Israeli Electric Company (IEC)
Illiquidity Premium	Or Liquidity Premium; premium demanded by investors when any given security cannot be easily converted into cash for its fair market value.
IMF	International Monetary Fund
Index Linked Gov Bonds	A government issued bond for which the interest income payment is related (or linked) to the CPI
LAT	Liability Adequacy Test
Liquidity Premium	See Illiquidity Premium
LOB	Line of Business
LTC	Long Term Care insurance; typically helps pay for costs associated with long term care
LTS	Long Term Services; including but not limited to Life, Provident and Pension funds
Marketable Securities	Liquid financial assets that can be quickly converted into cash; most are trading assets

MF	Management Fees; wages charged by a financial manager
Moody's	A credit risk rating agency
MSCI	Morgan Stanley Capital International Emerging Markets Index; measures the performance in equity markets, specifically in global emerging markets
Mutual Fund	Open end, non-tradable basket of securities that tracks the performance of an undelaying index, sector, or security type
Net Inflows	The net amount of new cash, excluding the impact of investment market value; calculated by subtracting withdrawals from new deposits
NIS	New Israeli Shekel
Non-Marketable Securities	Asset group that is considered to be difficult to buy or sell due to the fact they are not traded on any major exchange; could include government issued debt securities, limited partnerships, real estate investments and more
Nostro	The account in which a financial institution manages its own funds
OPEX	Operational Expenses
P&C	Property and Casualty insurance
PH	Phoenix holdings
PHI	Permanent Health Insurance
PI	Phoenix insurance
PLI	Professional Liability insurance
Reinsurance	A balancing risk strategy; one or more insurers that share the liability
Revenue	All encompassing streams of income; including, but not limited to: premium, management fees, benefit contributions
RFR	Risk Free Rates
ROE	Return On Equity; calculated by dividing net income over total equity
SME60	"The Rest Index"; tracks the performance of the 60 largest market value companies that are excluded from the Tel Aviv Stock Exchange
Special Items	Changes in profit or loss that are not part of the usual business of the Company, including changes in actuarial research, actuarial model changes, other structural changes and strategic acquisition costs in AM segment
Tel Bond 20	Index that tracks the performance of the 20 largest Index Linked Corporate Bonds in terms of market value
Tel Bond 40	Index that tracks the performance of the 40 largest Index Linked Corporate Bonds in terms of market value
Tel Bond 60	Index that tracks the performance of the 60 largest Index linked Corporate Bonds in terms of market value
TLV 125	An index that tracks the performance of the 125 largest market value companies in the Tel-Aviv Stock Exchange
TLV 35	An index that tracks the performance of the 35 largest market value companies in the TLV Stock Exchange
TLV 90	An index that tracks the performance of the 90 largest market value companies in the TLV stock Exchange
TMTP	Transitional Measures on Technical Provisions
Workers' Compensation Insurance	Insurance coverage for employees' injuries or sickness
Yield Curve	A line that plots interest rates of bonds with equal credit risk with different maturity dates in the future

Investor relations email contact: IR@fnx.co.il

Q2 2022 Phoenix Holdings

Financial Review