Clal Insurance

Legal Proceedings Report • Aug 7, 2025

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

CLAL INSURANCE ENTERPRISES HOLDINGS LTD

CLAL INSURANCE ENTERPRISES HOLDINGS LTD

Registration Number: 520036120

To: Israel Securities Authority To: Tel Aviv Stock Exchange Ltd. Form Number: T053 (Public) Sent via MAGNA: 07/08/2025 Israel Securities Authority: www.isa.gov.il Tel Aviv Stock Exchange: www.tase.co.il Reference: 2025-01-058584

Immediate Report on an Event or Matter Deviating from the Corporation's Ordinary Business

Regulation 36 of the Securities Regulations (Periodic and Immediate Reports), 1970

Results of an issuance must be reported in T20 and not in this form.

A report on the rating of bonds or a corporation rating must be submitted via Form T125.

Report on: [ ] Delayed report

Nature of the Event:

A judgment was received on the VAT assessment appeal of a subsidiary, MAX IT FINANCE LTD and credit card companies.

1. Further to the disclosures in notes 45 (3.2) and 7 (3.2) to the company's financial statements as of December 31, 2024 and March 31, 2025, respectively, regarding an appeal filed by a subsidiary of the company, MAX IT FINANCE LTD ("MAX"), to the Tel Aviv District Court on the decision regarding the objection concerning VAT assessments, whose main issue is the imposition of full VAT on commissions received for transactions conducted between holders of credit cards issued by MAX and businesses outside Israel, the company is honored to update that MAX reported as follows:

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

On August 6, 2025, a judgment was given in the appeal, which was consolidated with the appeals of the other credit card companies (the "appellants") dealing with similar issues (the "consolidated appeal"). The judgment accepted the consolidated appeal in part and rejected it in part, and it was determined that the VAT Director will issue revised assessments to the appellants (the "judgment").

The main points of the judgment regarding MAX are that, with respect to the underlying transactions conducted at businesses abroad and which were carried out with a full or incomplete document in certain sectors, the cross-commission component should be subject to VAT at a zero rate, while the rest of the transactions with businesses outside Israel that were carried out with an incomplete document, the cross-commission component will be subject to full VAT. It was further determined that this arrangement will also apply to the foreign currency commission component.

MAX is studying the judgment, but at this stage cannot assess its impact on its business results.

• 1. The date and time the corporation first became aware of the event or matter: 07/08/2025 at 09:15.
• 1. If the report was delayed the reason for the delay:
• 1. On the date _________ at _________ the impediment to report was removed.

• The company is a shell company as defined in the stock exchange regulations.

Details of the authorized signatories on behalf of the corporation:

No.	Name of Signatory	Position
1	Adv. Dror Biran	Legal Advisor of the Company

Explanation: According to Regulation 5 of the Periodic and Immediate Reports Regulations (1970), a report submitted under these regulations must be signed by those authorized to sign on behalf of the corporation. The staff's position on the matter can be found on the Authority's website: Click here.

Reference numbers of previous documents on the subject (the mention does not constitute incorporation by reference):

This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.

Securities of the corporation are listed for trading on the Tel Aviv Stock Exchange

Short name: CLAL INSURANCE ENTERPRISES HOLDINGS LTD.

Address: Raul Wallenberg 36, Tel Aviv, P.O. Box 37070, 6136902 Phone: 03-6387575, 03- 6387577 Fax: 03-6397011 Email: ClalMishpatit@clal-ins.co.il

Previous names of the reporting entity:

Electronic reporter name: Liron Gilaor Position: Adv./Legal Advisor Employer company name: CLAL INSURANCE COMPANY LTD. Address: Raul Wallenberg 36, Tel Aviv, 6136902 Phone: 03- 6387661 Fax: 03-6397011 Email: lirong@clal-ins.co.il

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