The Phoenix Holdings Ltd.

Investor Presentation • Nov 25, 2020

Looking Ahead

Q3 / 2020

Financial Statements Investors Presentation

The Phoenix Commitment

Mr. Eyal Ben Simon, CEO

From the CEO's Desk The company's results in the last quarter demonstrate once again the group's ability to maintain financial strength and stability even during the Covid-19 pandemic. We continued to drive accelerated growth, focusing on activities that generate higher profitability and returns over time. We will continue to improve our product mix, increasing the share of high yieldgenerating assets over activities requiring higher capital allocations.

We continued our focus on building the group's portfolio and synergies between companies. As Excellence Investment House and our asset management and financial activities continued to show exceptional results, we continued our organic growth efforts. Our offer to acquire Hellman-Aldubi is an expression of this strategy.

The onset of Covid-19 has prompted us to work faster to create technological and operational infrastructure, improving our flexibility and dynamism required in this changing reality. We will continue to increase efficiency within the company and invest in technological and digital transformation. As a result of these and other key efforts, the company won first place in overall customer service levels for all major Israeli insurance companies.

This quarter, the Phoenix continued to develop its distribution channels, insurance agencies and direct (Smart and others), while focusing on customer satisfaction across services and activities.

During the quarter, we formulated a dividend distribution policy at a rate that will not be less than 30% of the annual comprehensive profit (this distribution includes the announced share repurchase plan).

We have recently completed the formulation of a multi-year strategic plan for the group's main areas of activity. The plan is formulated with the assistance of an international consulting firm with relevant expertise, accompanying the Strategy Committees of the company and Phoenix Insurance. We will communicate plan highlights during December. This plan forms the foundation for creating the next breakthrough for Phoenix.

THE PHOENIX PATH TO BUSINESS GROWTH

Executive Summary 1-9/2020

Resilient performance led by continuous improvement of AUM	AUM	218 222 as of as of NIS Bn NIS Bn September 30, October 31, 2020 2020
Market cap exceeds pre-Covid-19 levels despite the ongoing crisis	1 Market cap	5.1 P/B 0.72 NIS Bn
Shareholder's Equity, as of 30.09.2020, totaled NIS 7.1 bn, compared to NIS 6.6 bn as of 31.12.2019.	Shareholders' equity	7.1 NIS Bn
Profits of NIS 323m in Q3/20 and NIS 494m in 1-9/20. Q3/20 profits benefited from market recovery.	Shareholders' comprehensive income	1-9/20 494 Q3 323 NIS m NIS m
Investmentsloss recovery, leads to variable fee collection expectation as soon as Q4/20	2 Covid-19 negative impact	3 333 176 post balance NIS m NIS m investment recovery
New dividend distribution policy - minimum of 30% of comprehensive income	Solvency	31.12.2019 4 165%
Continuous improvement in ROE during Q3/20, however remain lower than 5Y average	ROE	9.7 13.3 1-9/20 5Y % % average

1) As of November 12, 2020.

2) Post tax, see appendix A.

3) Pro forma investments adjustment, post-tax, related to Nostro marketable assets as of 01.10.2020 – 11.11.2020. please refer to slide 19.

4) The solvency ratio regardless of the transition provisions during the deployment period is at a rate of 105%.

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

1-9/20 Vs 1-9/19 (NIS m) Q3/20 Vs Q3/19 (NIS m)

Resilient performance led by continuous improvement of Q3 results

COVID-19 Post BS IMPACT NIS 176m 2

RESULTS

• Group posts NIS 323 million of quarterly profit
• Group posts NIS 494m 9M profit 3

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

2) Pro forma investments adjustment, post-tax, related to Nostro marketable assets as of 01.10.2020 – 11.11.2020

NIS (333m)

Results

(Does not include variable management fees). please refer to slide 19.

3) 9M is an abbreviation for 9 months

Profit before tax Composition

Significant capital market impact on Q3 results pushes profit higher

• Capital markets and interest influence in 9M/20 totaled NIS 164m, and in Q3 NIS 374m

• Operational profit in 9M/20 totaled NIS 564m, and in Q3 NIS 97m
• Non insurance operating income, independent from solvency regulations, in 9M/20 totaled NIS 243m, and in Q3 NIS 71m
• For interest and other influence on each segment please see segment slides.

(*) Investment income above 3% annual return

8

PREMIUMS, BENEFIT CONTRIBUTION

Decrease in premiums and benefit contributions, upward trend post Balance Sheet date

P&C- average premium decrease industry wide impacted overall premiums collected

Health – Mehuhedet HMO leaving heavily impacted the overall premiums collected, with minor impact on profit

LTS –

• Lower one-time deposits, mainly in Provident and Life
• Life savings premiums & contributions in Pension were lower, due to the significant amount of

PREMIUMS & BENEFIT CONTRIBUTION < (Nis m)

ASSETS UNDER MANAGEMENT

AUM exceeded pre-COVID-19 levels and maintained the upward trend post Balance Sheet date

• Stable AUM despite Covid-19
• ETF stability achieved despite increased level of withdrawals
• AUM as of 31.10.2020: NIS 222 bn

Q3-19 24 (178) 40 (114)

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

11

64

76

136

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

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

Provident & Pension

COVID-19 IMPACT NIS (5m) ¹

RESULTS

• Increase in management and general expenses due to changes in operational agreements
• Underwriting profit decrease as a result of management fee reduction

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

Q3-20 5 74 (57) (15) 7

Subsidiaries Investments Q3/20

Other

Q3/19 Financial Expenses

Q3-19 7 172 (27) (9) 143

changes and series 2 to series 5 bond exchange

Results

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

Main Market Indices

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.

NIS m Investment (1) Interest (2) Underwriting impcat (3) Total Impact Economic impact (Pre Tax) (4) Total Impact (Pre Tax) Tax Total COVID-19 impact (Post Tax) P&C 47 2 (15) 34 (74) (40) 13 (27) Health 80 (300) 2 (218) (49) (267) 91 (176) LTS 39 98 - 137 (226) (89) 30 (59) Agencies (3) - - (3) - (3) 1 (2) CO (1) - - (1) (103) (104) 35 (69) Total impact 162 (200) (13) (51) (452) (503) 170 (333)

(1) Marketable and non-marketable assets before tax 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 258m in LTS segment.

(2) The Company refers to interest rate changes during 1-9/20 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. (In Health segment not including the reclassification of asset value surplus that is not related to Covid-19 impact of approximately NIS 121m). More further details regarding interest impacts please refer to section (7)(1) of the financial reports.

Financial Reports (Pre Tax)¹

(3) For Covid-19 impact on underwriting results see Note 1 section 2(b) and 2(C). (In Health –NIS 19m is added to the Covid-19 impact due to the decrease in claim frequency)

(4) Investments under assumption of ( 3% + CPI )annual return including non collection of variable management fees of approximately NIS 92m (under assumption of 3%+CPI) in LTS segment under.

COVID-19 Impact

Appendix B

•

PHOENIX HOLDING

Balance Sheet As of 30/09/2020 (ILS m)

Total assets for yield dependent contracts and

• Total assets are up approximately 1,574 compared to 31/12/2019, reflecting overall Balance Sheet stability

Assets	30/09/2020	31/12/2019	Liabilites	30/09/2020	31/12/2019
Total asssets for yield-dependent contracts in consolidated insurance company	71,617	71,662	Liabilities in respect of yield dependent insurance contracts and investments contracts	71,099	71,091
Other Financial investments	26,460	24,809	Liabilities in respect od non yield-dependent insurance contracts and investments contracts	23,405	23,192
Financial investments and cash for holders of debt instruments, ETFs, short ETFs, complex ETFs, currency ETFs, and structured bonds	252	284	Liabilites in respect of ETFs, commplex ETFs, and structured bonds	250	282
Intangible assets	1,795	1,760	Others	9,756	8,863
Cash and other cash equivalents	1,710	1,732		0	0
Others	9,804	9,817	Total equity	7,128	6,636
Total Assets	111,638	110,064	Total equity and liabilities	111,638	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

Q3 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