The Phoenix Holdings Ltd.

Investor Presentation • Jun 23, 2020

Financial Statements Investors Presentation

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.

From the CEO's Desk

The Covid-19 crisis, which caused financial market turmoil, led to a global and local economic slowdown and impacted all financial services companies including the Phoenix Group. However, we adjusted quickly to the situation and successfully maintained business continuity and financial strength, focusing on crisis management and preparing to exit the crisis, while strengthening our position as the leading insurance company in Israel.

Phoenix as a responsible forthcoming market leader, is constantly looking at the changing economy , both at the local and global environment, while executing immediate needed changes and adjustments, the group also oversees and looks for the opportunities at hand , while maintaining groups rating as recently announced by Maalot (s&p) and Midroog ( Moody's) that confirmed rating at iIAA and Aa3.il respectively with a stable outlook.

Early in the process, the Group called on its Business Continuity Management (BCM) team which uses a contingency protocol and a business continuity strategy. The Group mapped the critical processes across the organization, assessed the needed resources and staff, established an emergency management structure with emergency situation teams, and allocated resources and technology infrastructure to allow for remote work now and in the future. These steps enabled the Company to maintain a high standard of service to its agents and clients.

while coping with the initial impact of the Coronavirus crisis, the Company also prepared for the "day after" as part of the groups plan to exit the crisis. The Phoenix group made adjustments in order to cope with the changing business landscape, both in variable and fixed costs. Moreover, the Company strengthened and supported its distribution channels through its agent-based sales activity, the direct sales channel "Smart", and agencies owned by the Company. The Company also focused through its leading and experienced investment team to identify and capture market opportunities.

Eyal Ben Simon

- Israel's Leading Insurance Group Q1 results, recovery post reporting date

• » AUM NIS 196 B as of March 31, 2020, NIS 209 B as of June 16, 2020 » Market cap. – NIS 4 B (1) (2)
• » Shareholders' equity. NIS 6.1 B
• » Shareholders' comprehensive Loss NIS (577) M
• » Covid-19 negative impact NIS (932) M, post balance investment recovery NIS 628 M (3)
• » Life LAT circular additional amount of NIS 251 M credited to shareholders' equity (4)

• » ROE 8Y Avg 11.2%

• 1) As of March 31, 2020. For changes after the balance sheet date, please refer to page 9.

• 2) As of June 16, 2020.
• 3) Pro forma investments adjustment, post-tax, related to Nostro marketable assets, as of June 16,2020 (Pre-tax adjustment NIS 952m), for further information please refer to page 15.
• 4) Restated, as of December 31, 2019, based on Commissioner's LAT Circular.

Supporting our customers, agents and employees…

Supporting our customers

• » 3 months complementary risk coverage for customers put on unpaid leave
• » Allowing delayed payments for certain products
• » Online medical assistance

Assisting agents

• » Advancing commission payments for agents
• » Setting up a COVID-19 portal for agents

Helping employees

• » Financial aid fund for employees in need for NIS 7.5mn
• » Providing health insurance and other benefits for employees on unpaid leave

… while ensuring Phoenix business continuity and lowering expenses

Ensuring business continuity

• » Setting up infrastructure for 100% remote working
• » Building performance dashboard management
• » Developing new digital tools to optimize processes

Lowering cost and managing expenses

• » Lateral salary decrease across the company for managers and employees who earn over NIS 7,000
• » Lowered unnecessary procurement cost
• » Postponement of IT development projects

Covid-19 impact

the Company loss NIS 932m, mostly due to investments losses

Post reporting date

Investments show significant recovery of – NIS 628m

Overall loss driven by investments and deficit in variable management fees mainly in Insurance, improvement in underwriting results

(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 June 16,2020 (Pre-tax adjustment NIS 952m), for further information please refer to page 15.

Premiums and Benefit Contributions remain unchanged despite the Covid-19 crisis

Premiums and benefit contribution remain unchanged despite the COVID-19

Premiums & Benefit Contribution (NIS m)

Recovery post reporting date

AUM

Lower AUM due to COVID-19, recovery post reporting date

AUM (NIS b)

Investments losses drive overall loss, decrease in underwriting profit mainly due to

Q1-20 Q1-19 Q1-20 Q1-19 Q1-20 Q1-19 Q1-20 Q1-19

Covid-19 impact

Investment loss NIS 268m

Post reporting date

Investments show significant recovery of – NIS 223m

• (1) Under assumption of 3% annual return
• (2) Pro forma investments adjustment, pre-tax as of June 16,2020. for further information please refer to page 15.

(3) Pre-tax

offset by improvement of reserve

Comprehensive income before tax drivers (NIS m)

15 49 27 125 Underwriting Profit Comprehensive Income Q1/20 Comprehensive Investment Income Q1/19 LAT -118 +34 )+227%( Covid-19(2) (312) (10) (219( (83) Δ Q1/19 - Q1/20 Results +NIS 49m Q1-20 58 74 (83) Q1-19 31 (51) (35)

Covid-19 impact Investment loss NIS 83m

Post reporting date

Investments show significant recovery of – NIS 49m

(1) Pro forma investments adjustment, pre-tax, as of June 16,2020, does not take into account the Non marketable revaluation against LAT. for further information please refer to page 15.

(2) Pre-tax

Proforma Post reporting date investments (1)

Financial market turmoil and deficit in variable management fees drive losses

Covid-19 impact

• Investment loss NIS 311m
• Variable management fees were not collected due to investments loss

Post reporting date

Investments show significant recovery of – NIS 234m

(1) Pro forma investments adjustment, pre-tax as of June 16,2020. for further information please refer to page 15.

(2) Pre-tax

Losses due to , significant recovery post reporting date

(1) Pro forma investments adjustment, pre-tax (as of June 16,2020). for further information please refer to page 15.

(2) Mainly attributed to Mehadrin which was paid as dividend on kind in amount of NIS 230m

(3) Pre-tax

Covid-19 impact

Financial turmoil in the local and global financial markets

Post reporting date

Investments: recovery in local and global financial markets

V-shaped indicator reflects a post reporting date recovery to near pre-crisis levels

Main Market Indices

Covid-19 impact

• Nostro account suffers significant losses
• Deficit in variable MF of NIS 517m

Post reporting date Investments:

• Investments profits of NIS 952m
• Deficit in variable MF to NIS 243m

(2) As of May 31,2020

V-shaped indicator reflects a post reporting date recovery to near pre-crisis levels

Supporting insurtech and startup's through PIX accelerator Promoting innovation

Improving service quality and efficiency

Shifting towards self-service and digital to lower cost and provide superior customer experience

Developing existing and new growth engines

Increase sales through existing channels (Agents, SMART) and through new growth engine

Improving synergies in Phoenix Group

Optimizing the Group structure in integrative view of financial returns and capital allocation

Motor Insurance

Pay as you Drive

Pay as you Drive

Innovative motor insurance that lets you pay only for the distance you drive

(P&C) Motor Insurance

Young drivers

Smart, advanced products

young drivers

New drivers pay only when they drive and save thousands of shekels

(P&C) ROTORCRAFT

Smart, advanced products

Rotorcraft insurance

Pay insurance only for flight time, in the safest route

(Health) TRAVEL

Smart, advanced products

Travel insurance

Revolutionary service that locates physicians abroad, schedules an appointment, and pays the physician for you

Customer experience

Self-Service

Customer experience Customer self service portal

Self-Service

NIS (932m)

Non GAAP impact adjustments

Adjustments of the impact reported at the financial statements to the economic impact of COVID-19.

NIS m	Investment Loss	Interest (2)	Underwriting Impact	Total impact	Economic impact (3) (pre tax)	Total impact (pre tax)	Tax	Total covid-19 Impact (post tax)
P&C	(256)	11	(15)	(260)	(12)	(272)	92	(180)
Health	(67)	(219)	(10)	(296)	(16)	(312)	106	(206)
LTS	(94)	(138)	-	(232)	(79)	(311)	106	(205)
Agencies	)4)	-	-	(4)	-	(4)	1	(3)
CO	(497)	-	-	(497)	(15)	(512)	174	(338)
Total impact	(918)	(346)	(25)	(1,289)	(122)	(1,411)	479	(932)

Financial Statements (Pre Tax)¹

(1) As reported in the Covid-19 Note 1 and Note 7 to the financial statements.

(2) Not including effects of reclassifying excess asset value resulting from the first time implementation of LAT Circular's amendment.

(3) Investments under assumption of ( 3% + CPI )annual return.

27

Phoenix Holding – Balance Sheet As of 31/03/2020 (NIS m)

Decrease of approximately 10% in total assets for yield dependent contracts from 31/12/2019 mainly due to the outbreak of Covid19. However, the impact is offset by the positive net inflows throughout the quarter.

Total liabilities in respect of yield dependent insurance contracts are down approximately 10%, mainly due to the outbreak of Covid19. However, the impact is offset by the positive net inflows throughout the quarter.

Assets	31.03.2020	31.12.2019	Equity and Liabilities	31.03.2020	31.12.2019
Total assets for yield-dependent contracts in consolidated insurance company	64,492	71,662	Liabilities in respect of yield-dependent insurance contracts and investment contracts	63,931	71,091
Other financial investments	24,946	24,809	Liabilities in respect of non yield-dependent insurance contracts and investment contracts	23,312	23,192
Financial investments and cash for holders of debt instruments, ETFs, short ETFs, complex ETFs, currency ETFs, and structured bonds	275	284	Liabilities in respect of ETFs, complex ETFs, and structured bonds	272	282
Intangible assets	1,796	1,760	Others	9,721	8,863
Cash and other cash equivalents	1,703	1,732
Others	10,079	9,817	Total equity	6,056	6,636
Total assets	103,292	110,064	Total equity and liabilities	103,292	110,064

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
CI	Comprehensive Income
CO	Corporate, Other and Consolidation
	Consumer Price Index; measures the average change of prices in an agreed upon basket of consumer
CPI	goods and services over time
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
LOB	Line of Business
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
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
P&C	Property and Casualty insurance
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

Thank You

Israel's most profitable insurance group

Financial Statements Investor Presentation