The Phoenix Holdings Ltd.

Investor Presentation • May 27, 2021

2021 Q1

Phoenix Holdings Quarterly 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 on its 2021 Q1 financial reports.

This presentation includes information regarding the Company's strategic plan for the years 2020-24 as well as proforma analysis. Accordingly, the presentation includes forward-looking information as defined in section 32A of the Securities Law 5728-1968.

The realization and/or non-realization of the mentioned forward-looking information 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, a change in working assumptions or in the economic models and assumptions used by the consulting firm – that can not be estimated in advance and are not 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 2021 Q1 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

Investments

Appendix

Glossary

• Leading Israeli insurance, asset management & financial group
• A long history of proven and recognized experience
  • Trusted by millions of customers

High growth and compelling returns

(1) As of May 23, 2021

(2) Based on yields in the general plans: #1 out of 5 in Policies (1991-2003), #2 out of 5 in Pension, & #3 out of 12 in Provident Funds

(3) As of December 31, 2020 with transitional measures (standard model)

(4) As of March 31, 2021

ROE Equity 19.1% 8.0NISb Solvency II ² 192% AUM ¹ 264NISb Comprehensive Profit 356NISm

Strong performance and momentum for 2021

Comprehensive Profit NIS millions

Investments & interest rates

Insurance* (P&C, LTS, Health, Ad-120)

Core Fee Businesses (Agencies, Excellence, Gama)

• » Strong underwriting and investment performance during quarter
• » Diverse sources of profit
• » Initial impact of strategic plan
• » Economy returned to growth with high vaccination and low COVID-19 infection rates

• » Robust dividend paid in March based on 2020 performance, in line with dividend policy
• » Growth in shareholder equity, returning to 8.0 NISb
• » Post report date, resumed implementation of share purchase plan (76 NISm to date out of 100 NISm plan)

(1) Including LAT restatement for 2018-19; 2020 figure is before dividend distribution

(2) Including approximately 230 NISm of Mehadrin shares as a dividend in kind

(3) Mid-term Target based on 5-year plan and assuming 3% return on investments. ROE target range assumes 3% to 4.8% return on Nostro investments (4.8% based on average actual annual return during 1.10.15-30.9.20)

(4) Including 2020 share buy-back program 26 NISm plus cash dividend 380 NISm 2020 distributed during 2021 Q1

On Track or Above Mid-term Targets

1 AUMs include Halman-Aldubi plus Halman's 46 NISb corporate fund

2 Before dividend distribution of 0.4 NISb in March for 2020

3 Includes approximately 230 NISm of Mehadrin shares as a dividend in kind

4 Post report date, the Company completed a share purchase of additional 50 NISm

Note: Mid-term Targets based on 5-year plan and assuming 3% return on investments. ROE target range assumes 3% to 4.8% return on Nostro investments (4.8% based on average actual annual return during 1.10.15-

30.9.20). Actual performance will depend on financial markets, macroeconomic growth, industry trends, company performance and other variables

4

Continued Strategy Implementation: Value Drivers

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

• P&C: growth in premium rate despite decrease in industry average; increase in Phoenix SMART direct sales
• Asset management: AUM increased from 234 NISb to 264 NISb including the acquisition of Halman-Aldubi (310 NISb including Haldman's corporate portfolio)
• Agencies: synergy overflow from the 2020 mergers

• Digitization: completion of digital production project; digital marketing of Excellence brokerage accounts; increased percent of digital service requests (over 40%); 17% fewer incoming calls compared to 2020 Q1
• Analytics: ongoing machine-learning pricing model development
• Innovation: marketing of international travel insurance through startup "Air Doctor" platform
• Service: improved customer satisfaction score compared to 2020 Q1
• Efficiency: reduced expenses as percent of gross premiums

3 Active portfolio management 4 Capital management

• Halman-Aldubi Investment House: acquisition completed February 2021
• Gama: IPO process started and prospectus approval, Phoenix expects to acquire control
• Ad-120: divestment process ongoing
• Excellence: initial synergies from launch of global equity mutual fund, actively management by Phoenix investment team
• Agencies: launch of private client investment unit

• Restricted Tier 1 (RT1): announcement of intention to issue 400 NISm Restricted Tier 1 capital during the second quarter, while
  • simultaneously replacing existing Tier 1 capital with marketable Tier 1
• Solvency II: published improved solvency ratio as of December 31 2020, supporting dividend policy
• IFRS 17: Progress toward implementation in line with European groups

Acquisition of Halman-Aldubi Completed

3

	• Halman-Aldubi mid-sized Israeli investment house
Description	• Key activity is asset management with 23 NISb AUM, primarily in long-term savings
Rationale	• Positions the Phoenix as a leader in the growing long-term savings industry, in line with group strategy
	• Achieves economies of scale together with existing provident and pension fund activities
	• Significant cost and commercial synergies
	• Acquisition was completed on February 28, 2021 at a price of 275 NISm
Transaction	• 45 NISm expected proceeds from divestment of New Pension Fund
	• Long-term savings subsidiary expected to be merged into the Phoenix Excellence Pension & Provident company by the end of 2021
	• In addition, the acquisition included 46 NISb corporate portfolio managed under specific arrangement (not considered strategic asset)

Priorities for next quarters

• Manage next Covid-19 phase carefully and proactively
• Continue strategic plan implementation
  • Accelerated growth
  • Innovation & efficiency
  • Active portfolio management, including Gama IPO and Ad-120 divestment
  • Optimized capital deployment ongoing volatility reduction
• Focus on risk-adjusted returns
• Continue to increase transparency and alignment with international standards for Israeli and global investors

Agenda Highlights

Financial Results

Segment Breakdown

Investments

Appendix

Glossary

Q1 2021 Comprehensive Income – Breakdown

Strong quarterly performance across activities

Comprehensive Income Drivers (NISm)

• P&C and LTS/Life businesses continued to drive group income, with strong operating and investment results
• Strong capital market performance contributed to the company's profitability
• Lower contribution from Health due to previous period one-time effects
• Steady performance from feebased businesses

Significant Improvement From Q1 2020

Results

Strong quarterly performance across most activities

• Overall improvement from (577) NISm loss to 356 NISm profit, driven by significant improvement in P&C and LTS/Life primarily due to COVID-19 impact on business and investments during Q1 2020
• Investments include profits and variable management fees following portfolio recovery from COVID-19 market impact
• Effect of the interest rate reduction in Q1/21 is significantly lower compared to Q1/20

Comprehensive Income Drivers (NISm) Q1/20 vs Q1/21

PBT (Profit Before Tax) Improvement from 2020

Growth in Premiums & Benefit Contributions

Premiums, Benefit Contributions, & Investment Contracts* (NISb)

Growth driven by P&C and LTS

Continued strategic focus on riskadjusted returns and growth of high-ROE businesses

• P&C: strong growth compared to first quarter of 2020 and 2019
• LTS: growth in benefit contributions due to company's position in the yield charts as well and reduced COVID-19 effects
• Health: decline due to suspension of travel insurance (COVID-19) and LTC and specific HMO coverage (discontinued)

		2021 Q1	2020 Q1	2020
P&C	Expenses / Gross Earned Premiums	4.5%	4.7%	5.1%
Health	Expenses / Gross Earned Premiums	5.7%	5.9%	5.9%
Life	Expenses / AUM	0.48%	0.54%	0.49%
Pension & Provident	Expenses / AUM	0.23%	0.29%	0.23%

• Initial implementation of strategy, including expense reduction, efficiency, and growth
• Additional efficiency planned with ongoing implementation
• Improved efficiency in pension and provident businesses expected with merger of Halman-Aldubi activities

1

Solvency II Ratio With Transitional Measures (December 31, 2020)

Solvency results, NISm		2019	2020	Change	Target
SCR	(1)	7,456	6,662	-794
Tier 1 Capital		8,767	9,440	673
Tier 2 Capital		3,540	3,331	-209
Total Capital	(2)	12,307	12,771	464
Excess Capital		4,851	6,109	1,258
Solvency II Ratio	(3)	165%	192%	27%	150%-170%
Solvency II Ratio Without Transitional Measures*		105%	116%	11%

Significant events that affected Solvency II Ratio	(1) Effect on SCR	(2) Effect on Capital	(3) Overall effect on Solvency Ratio
Positive investments returns
Studies (expenses and lapse)
Differed taxes adjustments
Changes in risk free interest rate
Mass-lapse reinsurance
Dividend distribution
Annual decrease of TMTP
LAT regulation circular effect on TMTP

Agenda Highlights

Financial Results

Segment Breakdown

Investments

Appendix

Glossary

Comprehensive Income Drivers (Pre-tax, NISm)

Improvement due to underwriting as well as investments

• Increase of 373 NISm in investment income in Q1/21 compared to the corresponding period Q1/20 mainly due to the losses and uncertainty during initial COVID-19 period
• Higher underwriting profit
• Company does not expect significant business impact from military conflict post Q1, due to State property coverage

Results

1-3/2021	72	106	-	-	178
1-3/2020	33	(267)	11	-	(223)

previous year

Comprehensive Income Drivers (Pre-tax, NISm)

Decrease in comprehensive profit due to LAT reserve changes • Decline in underwriting profit due to onetime changes in 2020 • Improved investment performance due to losses and uncertainty during initial phases of COVID-19 impact in 2020 • Less interest rate effects compared to 50 23 -166 -48 Comprehensive Income 1-3/20 Reserve Change 9 Normalized Profit CSM Interest 73 105 Investment Comprehensive Income 1-3/21 -27 Results +24 Underwriting profit -1 Market impact

(*) The underwriting earnings assume a real rate of return of 3%, investment income includes income from own (nostro) investments above or below a 3% real return

Comprehensive Income Drivers (Pre-tax, NISm)

Performance improvement driven by investments

Life

• Strong results in Life compared to previous period due to stronger investment performance
• Variable management fees were collected in Q1/21 as opposed to Q1/20
• In addition, some differences in interest rate effects and K-factors

LTS – Provident and Pension

• Increase in Pension and Provident performance due to investment income

Life Profit Drivers (NISm)

(260) ^{276 39} 94 1-3/20 Investment K-Factor 139 264 Underwriting Profit Interest 1-3/21 +536

Results

1-3/2021	157	124	(5)	-	276
1-3/2020	18	(140)	(44)	(94)	(260)

Strong performance in quarter

• Total profit increase in Q1/21 of NIS 276 M compared to a NIS 260 M loss in Q1/20
• Investment in the reporting period compared to last period increased mainly due to the increase of NIS 264 M in investment income stemming from the Nostro (general) account
• Underwriting profit variable management fees in Q1/21 were collected as opposed to Q1/20, driving increase in underwriting profit of 139 NISm
• One-time effects in interest rate and Kfactors in Q1/2020

LTS - Pension and Provident

Comprehensive Income (Pre-tax, NISm)

Results 10 Underwriting profit 4 Market impact 1-3/2021 100 (42) (48) 2 2 14 1-3/2020 94 (40) (41) (4) (5) 4

Growth in comprehensive income mainly from investments and Gmula (runoff product) profit

• Increase in benefit contributions and collection of management fees
• Stable expenditure rate, please see appendix for more details; expected to improve after scale merger with Halman-Aldubi Investment House

Operating Profit Drivers (NISm)

Lower profit due to lower trading volumes

• Investment management: lower investment management profit compared to high 15 NISm earnings in 2020 Q1 from high volume market making activities
• Brokerage: lower brokerage profitability due to higher growth and overall client acquisition costs

Comprehensive Income Drivers (Pre-tax, NISm)

34 ^{52 38} 1-3/21 )17( 1-3/20 Revenues Expenses )3( Other +18 Results 1-3/2021 134 (83) 1 52 1-3/2020 96 (65) 4 34

High comprehensive profit mainly due to growth in sales

• Comprehensive income increase to 52 NISm in Q1/21 compared to 34 NISm income in Q1/20
• Most of the increase in profit stems from growth, a rise in sales and revenues from investments in the amount of 9 NISm
• Initial synergies and value creation from 2020 acquisitions, additional to be captured

Increase in profit driven by capital market

Investments

• The increase in investment income in the reporting period compared to Q1/20 stems primarily from capital market returns, which were lower Q1/20 compared to the returns in Q1/21
• Financing expenses remain unchanged despite higher CPI (index)
• Expected one-time capital gain from Gama IPO and control purchase, depending on the issue price (**)

Operating profit by source (Pre-tax, NISm)

(*) Phoeniclass and other subsidiaries held by Phoenix Investments

(**) Forward-looking information, there is no certainty that Gama will complete the issuance process and become a public company

Agenda Highlights

Financial Results

Segment Breakdown

Investments

Appendix

Glossary

Market Indices Compared to 2020 Q1

Fixed-Rate GOV Bond (5+) CPI 3.6% USD/NIS TLV35 TLV125 S&P 500 GOV Bond Index (5-10) MSCI Dow Jones Corporate Bond Index )0.5%( 0.1% )20.0%( 3.2% 3.7% )21.0%( 7.0% )21.0%( 6.1% )20.9%( 5.8% )23.2%( 7.8% )5.0%( 0.5% )2.1%( )3.3%( )9.1%( 2.2% CPI / FX Stocks Bonds Local Global Local

Main Market Indices

Israeli and international market volatility Q1/20 and Q1/21

• Market performance drove improvement in income from investments
• Improvement across asset classes, including Israeli and international equities as well as fixed income

Q1/21 financial market recovery and low global interest rates generated improved returns

• Nostro acceleration in income from investments
• OPM profitability increase in policies, pension funds and provident funds

1 Refers to yields in the general plan

Q1/20 Q1/21

Agenda Highlights

Financial Results

Segment Breakdown

Investments

Appendix

Glossary

Agenda Highlights

Financial Results

Segment Breakdown

Investments

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
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
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

2021Q1

Phoenix Holdings Quarterly Financial Review

Please contact us at: IR@fnx.co.il