The Phoenix Holdings Ltd.

Investor Presentation • Aug 30, 2020

THE PHOENIX HOLDINGS

SUSTAINABLE PROFITABLE GROWTH OVER TIME

H1 / 2020

Financial Statements Investors Presentation

From the CEO's Desk

The Phoenix Commitment

CONSTANT GROWTH OVER TIME

Mr. Eyal Ben Simon, CEO

Phoenix's Q2 financial results are an outcome of our commitment to sustainable growth, profitability, and responsible investment management. These, together with diligent risk management, leverage of synergies across Phoenix Group subsidiaries, and focus on innovation and proprietary own distribution, have all contributed to the achievements we share today.

The COVID-19 crisis impacted all financial services companies in Israel, including Phoenix. However, this crisis has also created variety of business opportunities and accelerated shifts in the Group, which were already underway. With the support and collaboration of the Phoenix management team, the Phoenix Group quickly reacted to the crisis by launching a large scale efficiency plan, improved risk management, and a series of new investments. These efforts are strongly reflected in our Q2 results and we expect them to have positive lasting impact on our financials in the coming years. As a part of the comprehensive efficiency plan, the Phoenix planned and executed a reorganization effort matching its organizational design to its future business focus areas, in line with the Company's new strategic plan. As part of this efficiency effort, Phoenix offered voluntary retirement to ~350 employees as well as achieving lowered procurement costs, leading to savings of NIS ~150mn, that will be reflected in our future results.

As part of the recent reorganization, Phoenix introduced a new operating model – Phoenix Pro – that will drastically improve our daily operations and services for our agents and customers across all lines of business.

Q2 results also demonstrate Phoenix's leading position in the Israeli market, driven by its unique business mix, which provides greater diversification and stability. Phoenix operates a multi-line insurance carrier, asset management arm, as well as owned proprietary distribution channels (SMART and owned agencies). This combination creates a solid infrastructure that helps balance the competitive landscape, market fluctuations, and changing regulatory environment.

Lastly, over the past months, the Phoenix Group has developed a new strategic plan. Phoenix's new strategy has been developed with the help of a reputable global consulting firm, leveraging the experience and expertise in developing plans of this nature. Phoenix's Board of Directors and Phoenix's Board Strategy Committee haves been overseeing the plan's development. As Phoenix approaches the completion of its new strategy, we expect it will be brought to the Board of Directors' approval in the near future.

H1/2020

Executive Summary

The Phoenix - Israel's Leading Insurance Group H1 Results - resilient performance, stable AUM The Company's Shareholder's Equity, as of 30.06.2020, totaled approximately NIS 6.8 bn, compared to approximately NIS 6.6 bn as of 31.12.2019. Recent COVID-19 events confirm the Phoenix's resilient and diversified business model with activities across insurance, asset management, distribution, and related holdings. (1)

Profits of NIS 748 million in Q2 2020 and NIS 171 million in H1 2020. Q2'20 profits benefited from market recovery of NIS 612 million in the Nostro portfolio.

The Group's profit before tax from agencies and financial services, key elements of diversification, was NIS 173 million in H1'20, representing 67% of the Group's total

Assets under management grew to NIS 208 billion as of 30.06.2020, reaching NIS 213 billion after the end of the reporting period

To improve operational and underwriting performance, the Company took several efficiency measures and implemented a voluntary retirement plan that is expected to reduce costs by NIS 150 million annually starting next year. Moreover, the Company is driving growth and focusing on return on risk adjusted capital. (2)

S&P and Moody's credit agencies reaffirmed the Company's credit rating at ilAA- and Aa3.il, respectively and with a stable outlook

1) Restated, as of December 31, 2019, based on Commissioner's LAT Circular.

2) Some of the information in this presentation that does not refer to historical facts constitutes forward-looking information, as defined in the Securities Law of 1968. for further details please refer to slide30.

Credit Rating

THE PHOENIX WAY FOR BUSINESS GROWTH

Capitalizing on group synergies

Reliable, persistent, Leading investment division

Leveraging Distribution channels - direct and agents

Innovation development and integration of new technologies

THE STRENGTH OF THE GROUP

The Phoenix Holdings Ltd.

THE COVID-19 ERA

Financial resilience Capitalizing on investment opportunities Sustainable growth Efficiency plan

HIGHLIGHTS H1/2020

The Phoenix - Israel's Leading Insurance Group H1 Results - resilient performance, stable AUM

AUM	208 as of NIS Bn June 30, 2020
Market cap	1 4.2 NIS Bn
Shareholders' equity	6.8 NIS Bn
Shareholders' comprehensive income	H1 171 Q2 748 NIS M NIS M
2 Covid-19 negative impact	3 479 269 post balance NIS M NIS M investment recovery
Life LAT circular	4 251 additional credited to NIS M amount of shareholders' equity
ROE	5.2 52.5 10.4 Q2 5Y H1 % % average %
Business efficiency plan	150 Estimated to NIS M be saved 8

1) As of August 25, 2020.

2) Post tax, see appendix A.

3) Pro forma investments adjustment, post-tax, related to Nostro marketable assets, as of August 24,2020, for further information please refer to page 16.

4) Restated, as of December 31, 2019, based on Commissioner's LAT Circular.

PHOENIX HOLDINGS

H1/20 Vs H1/19 (NIS m) Q2/20 Vs Q2/19 (NIS m)

Resilient Performance led by markets recovery, COVID-19 still a main result driver

COVID-19 IMPACT

• Covid-19 weighs on H1 results
• Market recovery and investment performance assist superior results in Q2

RESULTS

• Group posts NIS 748 million of quarterly profit
• Group posts NIS 171 H1 profit
• Investments performance assists overall recovery

COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m)

PREMIUMS, BENEFIT CONTRIBUTION

COVID-19 still weighs on collected premiums and benefit contributes

Premiums and benefit contribution decrease due to COVID-19

Provident Pension Life

• Lower one time deposits, mainly in Provident and Life

Health P&C

• Discontinuation of LTC sales and halt in international travel due to COVID-19

PREMIUMS & BENEFIT CONTRIBUTION < (Nis m)

2,437

1,885

4,533

2,903

2,321

14,079

1,782+ (13%+)

2,590

2,042

5,059

3,303

2,867

ASSETS UNDER MANAGEMENT

AUM recovery during Q2 despite COVID -19

AUM

• Company posts slights decrease over H 1
• Company posts recovery during Q 2, mainly driven by ETFs positive impact
• AUM as of 31.07.2020: NIS 213 bn

P&C

Q2 Investments performance recovery and underwriting profit stability

COVID-19 IMPACT

• Average premium price drop industry wide
• Claim frequency drop industry wide

RESULTS

• Lower investments income in H1, mainly due to Covid-19
• Lower insurance liabilities in H1/19 due to increase in capitalization rate to 3%*
• Winter weather damages and flight cancellations in Q1 lead a lower profit
• 1) NON-GAAP Adjustments pre tax, for further information please refer to Appendix A.

2) Under assumption of 3% annual return

COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m) -367 (-84%)

HEALTH

Underwriting results improvement despite COVID-19 impact

COVID-19 IMPACT

• Near complete halt of international flights impacts results

RESULTS

• Company posts ILS 226 m in profit over H1, and ILS 176 M of profit in Q2
• LAT reserve changes due to initial application of regulatory amendments to the LAT circular and to the liquidity premium
• 1) NON-GAAP Adjustments pre tax, for further information please refer to Appendix A.

COMPREHENSIVE INCOME DRIVERS < (Pre-tax, Nis m)

LTS

Financial market turmoil and deficit in variable management fees drive losses

COVID-19 IMPACT

• Variable management fees were not collected due to investments loss, improvement in deficit during Q2
• Lower investment yields lower margins in yield guaranteed provident funds

RESULTS

• H1 loss of NIS 60 million, impacted by Covid-impacts and erosion of average premium
• Strong results in Life drive profit higher in Q2
• 1) NON-GAAP Adjustments pre tax, for further information please refer to Appendix A.

Q2 significant recovery led by investments and lower financing expenses

RESULTS

(CO)

• COVID-19 weighs on overall H1 results and lead to a NIS 149 m loss
• Financial margin recovery during Q2 and superior investment performance lead to a NIS 384 m in profits

1) NON-GAAP Adjustments pre tax, for further information please refer to Appendix A.

MAIN MARKET INDICES (Q 2 /19, Q 2 /20, H 1 /19, H 1 /20 )

• Local CPI decrease compared to H 1 /2019
• Significant recovery in global stock markets, followed by a slight local recovery

Q 2 /19 Q 2 /20 H 1 /19 H 1 /20

MARKET VS. PHOENIX YIELDS

(Q2/19, Q2/20, H1/19, H1/20)

Q2/20 financial markets recovery and low global interest rates generate solid returns

• Smaller deficit in variable MF
• Nostro post reporting date improvement across the board

Q2/19 Q2/20 H1/19 H1/20

1) Pre tax 2) Pro Forma calculation for 01.07.2020 – 24.08.2020 * Refers to yields in the general plan

OPM

MF Deficit 31.03.20 – (517) 30.06.20 – (296) 24.08.20 – (86)

17

Pro-forma calculation Post Balance Sheet investments (NIS m)¹

THE PHOENIX WAY FOR BUSINESS GROWTH

Capitalizing on group synergies

Reliable, persistent, Leading investment division

Leveraging Distribution

channels - direct and agents

Innovation development and integration of new technologies

CAPITALIZING ON GROUP SYNERGIES

RELIABLE, PERSISTENT LEADING INVESTMENT DIVISION

INSURANCE

• Employees:70
• AUM: 159 bn

Specialize in Long Term Services and Nostro asset management in multiple asset classes, such as: local and global marketable assets, non marketable debt, Real Estate and alternative investments

Nostro Ins.&Inv. Contracts

ANCOR, RE DEBT, CO-INVEST Private Funds

• Employees: 10
• AUM: 1 bn
• SHORT TERM SAVING Excellence
• Employees: 330
  • AUM: 48 bn

Market leader in the local etf arena and a substantial player in the active funds arena

Customers Portfolio ETFs Mutual Funds

Pension Provident

• Risk Management
• Performance excellence
• Responsibility
• Team Work

RELIABLE, PERSISTENT LEADING INVESTMENT DIVISION

RELIABLE, PERSISTENT LEADING INVESTMENT DIVISION

Phoenix Investments

23 BUILDING THE PHOENIX TECHNOLOGY EDGE Implementing Impactful For Proven Technologies: Next Generation Insight Technologies: PHOENIX INSURANCE ACCELERATOR Personalization Data Digital Customer Journeys Risk management Advanced analytics Costumer engagement Operational excellence Insight Future Impact Technology Travel insurance Claim payments via Bit Ambulatory Refunds Fast Track Surgeries Claims Rotorcraft insurance Customer's Fast Track Ambulatory Claims Young driver Digital Claims Agent's Fast Track Ambulatory Claims Pay as you drive NLP based software for medical history analysis EITX

LEVERAGING DISTRIBUTION CHANNELS: DIRECT & AGENTS

Upgraded, better, more efficient service for agents

Advanced Technology: Encouraging independent, new world of activity tracking for agents

Human Capital & Expertise: personalized and professional service

Profitable Sales Growth

• Technological infrastructure strengthening

• Data
• Customer Experience

APPENDIX

Appendix A

NON GAP: COVID 19 ECONOMIC IMPACT

COVID-19 Non GAAP impact adjustments: Adjustments of the impact reported at the financial statements to the economic impact of COVID-19.

		Financial Statements <		(Pre-tax)
NIS m	INVESTMENT 1	INTEREST2	UNDER WRITING IMPACT3	TOTAL IMPACT	ECONOMIC IMPACT (PRE TAX)4	TOTAL IMPACT (PRE TAX)	TAX	TOTAL COVID-19 IMPACT (POST TAX)
P&C	(53)	(10)	(18)	(81)	(37)	(118)	40	(78)
Heatlh	38	(311)	8	(265)	(30)	(295)	100	(195)
LTS	(36)	1	-	(35)	(149)	(184)	63	(121)
Agencies	(4)	-	-	(4)	-	(4)	1	(3)
CO	(75)	-	-	(75)	(49)	(124)	42	(82)
Total Impact	(130)	(320)	(10)	(460)	(265)	(725)	246	(479)

(1) As reported in the Covid-19 Note 1 section (3) in the financial reports and after offsetting the guaranteed yield to policyholders of approximately NIS 138m in LTS segment.

(2) The Company assumed interest rate changes during H1 as a Covid-19 impact due to global monitory policy. For further details on the global monitory policy please refer to section 3 of the BOD report. For further details on the relevant adjustments please refer to Note 7 of the financial report.(health

(3) For Covid-19 impact on underwriting results see Note 1 section 2 (b)(C) of the financial report.

(4) Investments under assumption of ( 3% + CPI )annual return including non collection of variable management fees of approximately NIS 60m (under assumption of 3%+CPI) in LTS segment under.

Appendix B

PHOENIX HOLDING

Balance Sheet As of 30/06/2020 (ILS m)

COMMENTS

• Total assets for yield dependent contracts are down 3,537 compared to 31/12/2019, mainly due to the investment losses and withdraws due to COVID-19.
• Decrease of approximately 5% in total assets for yield dependent contracts from 31/12/2019 mainly due to the outbreak of Covid19.
• Total liabilities in respect of yield dependent insurance contracts are down approximately 5%, mainly due to the investment losses and withdraws due to COVID-19.
• Total assets are down approximately 2,294 compared to 31/12/2019
• The company maintains stable liquidity

Assets	30/06/2020	31/12/2019	Liabilities	30/06/2020	31/12/2019
Total assets for yield- dependent contracts in consolidated insurance company	68,125	71,662	Liabilities in respect of yield- dependent insurance contracts and investments contracts	67,831	71,091
Other Financial investments	25,783	24,809	Liabilities in respect od non- yield-dependent insurance contracts and investments contracts	23,388	23,192
Financial investments and cash for holders of debt instruments, ETFs, short ETFs, complex ETFs, currency ETFs, and structured bonds	271	284	Liabilities in respect of ETFs, complex ETFs, and structured bonds	270	282
Intangible assets	1,794	1,760	Others	9,480	8,863
Cash and other cash equivalents	1,902	1,732	-	-	-
Others	9,878	9,817	Total equity	6,801	6,636
Total Assets	107,770	110,064	Total equity and liabilities	107,770	110,064

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
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

GLOSSARY

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
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
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
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

DISCLAIMER

H1 2020 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. Moreover, this presentation includes information that may be present in the presentation but have not been included in the company official report, or have not been presented in the same way it is presented in this presentation, and is accurate to the company's knowledge, only as of the date they are presented.

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 prepared for the sake of convenience and brevity and is not a substitute for a review of the Company public reports, which contain complete information about the Company, before making any decision to invest in the Company's securities.

Some of the information in this presentation that does not refer to historical facts constitutes forward-looking information, as defined in the Securities Law 1968. Forwardlooking information reflects our the Company's current views with respect to future events and are based on assumptions and subject to risks and uncertainties (such as Covid-19 impacts) that could cause actual results to differ materially from those contemplated. The Forward-looking information shall not be considered as a representation, warranty, declaration, obligation, undertaking and/or commitment, of any kind, made or owed by the Company and/or its directors, officers, employees, representatives. You should not unduly rely on any forward-looking information. The forward-looking information speaks only as of the date of this presentation, and the Company assume no obligation to update or revise the forward-looking information for any reason.

THANK YOU

Financial Statements Investors Presentation