The Phoenix Holdings Ltd.

Investor Presentation • Feb 11, 2021

Introduction to the Phoenix

Leader in Israeli insurance, asset management, and financial services

February 2021

- CONFIDENTIAL AND PROPRIETARY -

.

This presentation includes the main points of the Company's strategic plan for the years 2020-2024 as formulated during 2020. Accordingly, the presentation includes forward-looking information as defined in section 32A of the Securities Law 5728-1968.

Such information includes, inter alia, various forecasts, objectives, assessments and estimates, including information provided by way of illustrations and/or graphs and/or tables relating to future events or matters, revenue and profitability from new initiatives and from the implementation of various plans, profit forecasts and other future financial data whose realization is uncertain and not under the control of the Phoenix Group.

In recent months, the management of the Company has carried out a process accompanied by an international strategy consulting firm, based on the Company's data, market data, raw or processed information collected by the consulting firm and comparative data analyzed with the consulting firm's financial models and based on certain working assumptions regarding the Company's operations and relevant markets.

This presentation is based on the subjective assessment of the Company and its consultants, and, among other things, relies on past experience, professional knowledge gained by the Company, research knowledge, tests and analyses performed by the consulting firm, existing information and current expectations and assessments, including future developments as known to the Company today. Forecasts assume a 3% yield on investments.

The realization and/or non-realization of the 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.

The business strategy presented in this presentation is correct as of the date of the presentation and may change in the future, among other things, taking into account the risk factors listed above and the decisions of the Company's board of directors and boards of directors of the group companies.

This presentation does not constitute an offer to purchase or sell the Company's securities, or an invitation to receive such offers. This presentation was made for convenience and is an outline presentation only and does not exhaust or purport to encompass the full data about the Company and its activities. This presentation was made for the sake of summary and convenience only and cannot replace a review of the reports published by the Company to the public, which include the full information about the Company, prior to making a decision regarding investment in the Company's securities. The presentation also includes information which been collected from third parties in regard of which the Company has not checked the data itself. For the avoidance of doubt, the Company does not undertake to update or change the information contained in this presentation.

Eyal Ben Simon CEO

• » Phoenix since 2003, CEO since 2019
• » Former head of P&C business and of risk management
• » Previous experience with Israel Ministry of Finance

Eli Schwartz CFO

• » Phoenix since 2002, CFO since 2016
• » Former Investment Controller, Deputy CTO, and finance manager at subsidiary companies

Orr Harush Chief of Staff

• » Phoenix since 2020
• » Previous experience as Partner in consulting firm serving financial institutions

David Alexander Business Development & IR

• » Phoenix since 2020
• » Previous experience in private equity transactions / portfolio and M&A advisory; McKinsey

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

Strong capital position 165%

High growth and compelling returns

TA35 index Since 2018	6.6 NISb Market cap(1)
70+ Years of activity	AA- / AA+ Holding / Insurance Rating
>3m Clients c. half adult population	234 NISb AUM(2) +75 NISb 2015-20
Solvency Ratio(3)	7.1 NISb Equity(4)
12.0% Average ROE 2016-20Q3 (5)	18.5% Revenue CAGR 2016-2019

(1) As of February 2, 2021

• (2) As of December 31, 2020
• (3) As of December 31, 2019 with transitional measures (standard model)
• (4) As of September 30, 2020

(5) 2020 Q3 ROE is annualized

Diverse Insurance, Asset Management & Financial Services Group

Highlights

1

2

Unique opportunity in a growing, disciplined & underpenetrated market with high barriers to entry

Strong demographic and wealth trends, with high compulsory savings rates and potential for greater insurance penetration

Strong market position with distinctive growth and performance through the cycle

Leading multiline insurer and asset manager with 234 NISb AUM, delivering best-in-class returns to investors through the cycle (12% average 2016-20Q3 annualized)

Value creation driven by diversified activities with untapped potential

45% of YTD 2020Q3 income generated by recurring fee-based non-balance sheet businesses, with plan to create and unlock value of assets currently held at book value

Strategic focus on growth, technology, and profitability

Focus on accelerating growth in high ROE businesses, innovation for competitive advantage and efficiency, and active management of portfolio and capital

Solid financial results, organic capital generation and robust solvency position

Consistently delivered best-in-class returns in historically low rates environment with a Solvency ratio of 165%¹ and 30% dividend distribution policy

Experienced and driven leadership team backed by value-oriented shareholders

One of the most experienced teams in the market with best-in-class board of directors made of high-profile Israeli and international professionals

3 4 5 6

Attractive Israeli Market

Important trends expected to support ongoing growth and improve efficiency in the financial sector

Strong & Growing Economy	GDP growth 3.1% over 2016-19, expected to be consistently above 3% in the long term, >2x the average of the EU » High GDP per capita of c.\$42,000, in line with major developed economies » Business friendly environment with corporate tax lowered from 26.5% to 23% in recent years » Responsible regulator with track record of stable financial institutions across the cycle »
Stability & Capital Market Formation	Mandatory contribution of >10% of employee salary to pension » More than \$600bn of institutional AUM and a developed private equity market » Upgraded by the World Economic Forum, the OECD, S&P and Moody's in 2018 for economic stability and ease of doing business » Rule of law provides transparency for businesses »
Favourable Demographic & Education	9m population, expected to grow at c.2% p.a. » 3rd most educated country in the world with >50% of the workforce with some tertiary education » Upward educational mobility is more common in Israel than in other OECD countries, continually expanding the skilled and educated » labour market Resilient during Covid-19 and positioned well for 2021 with high vaccination rates »
Innovation & Entrepreneurship	Culture of innovation » (1) Greatest number of start ups per capita globally with a prolification of high value start-ups - >20 unicorns and 27 "charging ponies" » 3rd global ranking of NASDAQ listed companies » Favourable and supportive regulatory environment that helped market resilience through the cycle »

Fast Asset Generation in Israel Creates Unique Opportunity

Israeli Long-term Savings AUM Breakdown

(NISb)

Driven by:

• » Demographic growth
• » Wealth accumulation
• » Compulsory savings rate for each employee

Overall AUM's Last 10 Years CAGR, By Region

Insurance Penetration Rate(1)

Sources: OECD Stat., McKinsey, BCG, BOI, Statista, EY, KPMG, last available data

(1) Life & Non-Life insurance, 2018 measured as the ratio of premium underwritten in a particular year to the GDP; OECD data

Premier Insurance & Financial Services Group in Israel

• » Value driven by leading position in insurance and distinctive noninsurance activities
• » The Phoenix has delivered superior returns across both 5 and 10-year cycles
• » It has consistently achieved profitability – even during market shocks
• » Israeli insurance and financial group of the year 2020¹
• » Top 50 Israeli employer²

(2) N12 media

(3) 5 years average 2016 – YTD 2020 annualized; 10 years average 2011 – YTD 2020 annualized

(4) Not including long-term care

Source: Market Shares from E&Y "The Insurance and Pension Industry in Israel – 2019", Jefferies, CapitalIQ data as of 9/02/2021, USD/ILS: 0.308

| 9

Asset Management Driving Growth and Diversified Income

Long-term savings offering synergetic to life insurance business and distribution

Provident Funds

Lump-sum savings product set for asset accumulation, providing range of strategies for clients

Pension Funds

Long-term savings funds distributed via employers and directly to clients

Private Savings Solutions

Additional products including "study funds" and "managerial insurance" plans

One-Stop-Shop for asset management & financial services for private and institutional clients

Asset Management – Liquid Products ESOP Brokerage &

Market leader in ETFs, growing underpenetrated actively managed mutual funds; discretionary portfolios

Investment Services

Growing brokerage services for private and institutional clients; corporate investment services

Market leader in the trust and administration segment, with thousands of corporate clients

Leading Investment Management

Focus on sustainable

Proactive, dynamic and specialized teams

Effective governance

Global investments and

Advanced infrastructure for investment and risk

processes

partnerships

management

returns

Leadership Among 5 Large Insurance Groups – Long-term Savings Investment Performance

Company	Insurance Participating Policies (General, since 2004)				Pension Comprehensive (aged 50 and under)		Provident Fund (aged 50 and under)		Training Fund (General)
	12 Months	3 years	5 years	Standard Deviation	12	Months 3 years	12 months	3 years	12 months		3 years 5 years	Standard Deviation
Phoenix	0.88%	4.30%	4.91%	6.34%	0.72%	4.58%	2.06%	4.36%	0.35%	3.71%	4.35%	6.28%
Harel	-0.28%	3.21%	4.11%	5.99%	0.85%	3.81%	-1.33%	2.49%	-0.50%	2.88%	3.58%	5.80%
Clal	-0.71%	3.59%	3.72%	6.17%	-0.10%	4.01%	-1.23%	3.27%	-0.33%	3.56%	3.50%	5.98%
Migdal	0.48%	3.59%	3.91%	6.06%	1.21%	3.92%	0. 57%	3.35%	0.42%	3.25%	3.53%	5.77%
Menora	-1.64%	2.99%	3.53%	6.44%	-0.42%	4.10%	-2.06%	2.68%	-2.21%	2.49%	3.15%	6.56%

The presented published periods: last 12 months: (11/19-10/20), last 3 years (11/17-10/20), last 5 years (11/15-10/20), standard deviation in yearly terms – last 5 years: (11/15-10/20). The presented yield returns are average gross nominal depending on the selected period, before deducting administration fees. There is no information about the rank and returns achieved in the past to indicate the rating and returns that will be achieved in the future or commitment to any yield. For additional legal remarks regarding the presented information in this slide and details regarding the investment tracks which were the basis for comparison, see Annex A to the presentation. Annex A is an integral part of this presentation

Phoenix's Strategic Plan

Leading insurance, asset management, & financial services group

• » Focus on distribution of high potential, underpenetrated asset management activities
• » SMART direct channel
• » Rollout of digital engines and data-driven analytics across activities (underwriting, marketing, sales, service, channel management)
• » Acquisitions not included in targets (e.g., Halman-Aldubi Investment House)

2015 2019 Target

Broad Distribution Skills Across Channels

	Direct – Smart		Indirect – Insurance Agencies
Growth Drivers	Market Share of Direct Distribution(1)		Strong Position	Comprehensive Profit (After Tax)
Digital marketing » and marketing automation Optimizing the digital »	Phoenix taking share in growing direct channel: direct distribution expected to grow from 20% to 30% of Israeli auto insurance market	20%	Proprietary, leading insurance » agencies serving employers and individuals	(NISm)	114	144
customer journey		10%	High ROE and growth »
Cross-sales »			Platform for consolidation » with strong track record	65
Pricing and market » analytics	2% 2015	2019 Target	In addition, deep relationships » and commitment to external agencies and channels	2016	2019	Target

Phoenix is the Gateway to Financial Services for our Clients

Business Transformation

• » Initiatives include AI and machine learning
• » Advanced analytics unit with top local talent
• » Focus area: pricing, sales, retention, claims and underwriting
• » Includes relevant architecture, governance, and technology

• » Focus areas: motor, pensions, claims, sales
• » Lean management methodology

Phoenix Drive: Usage-based pricing, recognized innovation

One-touch medical appointments

abroad

Phoenix Young: Ondemand motor insurance for young segments

Drones insurance: Usage-based pricing

Claims dashboard: Claims management & tracking

300 NISm Annual Savings While Improving Service

Cutting costs while improving service

Growth in Self-service

18% increase in digital service users between 2019 and 2020

Market Leaders in Digital Services

First Place in 7 out of 9 categories of digital service

Reduction in Call Centers

35% reduction in call center inquiries

Improving Satisfaction

Achieving 6 out of 7 on customer survey scores

Process optimization: 1 Centralization:

digitization and automation of main operational and servicerelated processes

2 Cost reduction:

rationalization of operational units in the organization and reducing duplication

3

including claims excellence (e.g., suppliers), SG&A review, and group effort across subsidiaries

Active Management to Unlock & Create Value

Core

Almost half of profits are generated by high ROE activities that represent c.30% of equity

Focus on Highly Profitable, Recurring Non-insurance Activities Provides Resilience Even Through COVID

Disciplined Value Creation

Insurance: Focus on growth and profitability, expansion potential

Core:

Capture synergies, drive growth, invest, and unlock value

Non-core: Divest

(2) Includes investments, Phoenix Holdings, and others

(3) ROE annualized based on 30.09.20 YTD results

Deployment, & Volatility

| ¹⁸

)29(

147

+1%

2

-1%

Scenarios

Growth Record – Revenue and Premiums Breakdown

| ²⁰

* As of 2020Q3, Life and LTS variable management fees were in deficit of 101 NISm YTD, but were expected to be collected during 2020Q4

Balance Sheet Highlights (2020Q3)

• » Phoenix among best capitalized Insurers in Israel
• » Israel adopted Solvency II in 2017 and implemented transitional regulations through 2032 requiring an increase in shareholder equity over several years
• » Currently using standard models, leaving upside potential

Solvency rate including/excluding transitional measures(1)

Consistent Profitability Driving Robust Growth in Equity

Commitment to Dividends

• » Dividend distribution policy – 30% of profits
• » Annual dividend forecasted in 2020⁴
• » Share repurchase plan
• » Supported by liquid profit outside insurance / solvency

| ²⁵

9.7% ROE 2020Q3 YTD annualized

(1) Including LAT recharacterization for 2018-19

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

(3) 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)

(4) Including 2020 share buy-back program and a cash dividend for 2020 to be distributed in 2021

Clear Medium-term Targets

| ²⁶ 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

Summary – The Phoenix Opportunity

• 1
• Strong, growing market with favorable macro conditions and industry structure

Established leading position with distinctive growth & profitability from diversified activities

Proven plan for accelerated growth, efficiency, and disciplined value creation across group

Focus on innovation and technology investment and business transformation

Solid balance sheet backing commitment to distributions

Experienced & Driven Management Team

Eyal Ben Simon CEO

• » Phoenix since 2003
• » Experience in insurance and management
• » Israel Ministry of Finance

Moti Mor P&C

• » Phoenix since 2003
• » Experience in P&C
• Daniel Cohen Long-term Savings &
• Life
• » Phoenix since 2018 » Experience in life insurance, health, and long-term savings

Daphna Shapira Health

» Phoenix since 1996

insurance

• » Experience in health

Raanan Saad SMART Direct

• » Phoenix since 2019
• » Experience in direct insurance, marketing and business development

Hanna Hollander Excellence

• » Phoenix since 2012
• » Investment experience, banking, risk management and raising capital

Haggai Schreiber Investments

• » Phoenix since 2014
• » Investment management experience

Eli Schwartz CFO

• » Phoenix since 2002
• » Experience in finance and subsidiaries' finance functions

Menachem Neeman Legal

• » Phoenix since 2015
• » Former Partner in HFN

Keren Granite Service Operations Claims

• » Phoenix since 2000
• » Experience in claims and operations

Ron Shvili Innovation and Technology

• » Phoenix since 2020
• » Experience in technology
• » Previous experience at IDF and Cellcom

Extensive industry experience and record at Phoenix Strong culture of teamwork and cooperation Management option plan

Board of Directors with Broad Israeli and International Experience

Israel Insurance, Finance, Benny Gabbay Chairman, Holdings & Insurance

Investments Fmr. Partner, E&Y; Milliman; Consulting; co-CEO of Universal Motors

Eliezer Yones Holdings & Insurance

Israel

Insurance, Finance, Investments, Strategy, Risk Fmr. CEO of Mizrahi Tefahot Bank, Hapoalim, and Bank Clali; Accountant General State of Israel

Zhak Cohen Holdings & Insurance

US Insurance, Risk Management, Finance, Investments Managing Director, Gallatin Point; Director, Bowhead

Insurance

Orit Alster Insurance

Israel Finance, Risk Management

Fmr. Head of Corporate Division, Discount Bank; Director at IDB NY Bank

Dr. Rivy Cohen Insurance

Israel

Insurance, Risk Management Kiryat Ono Academic College, Vice President. Fmr. IDI Direct Insurance, External Director

Ben Langworthy

Holdings

Finance, Investments Senior Managing Director, Centerbridge; Director at Banca Farmafactoring, Resort Finance America, Auxmoney,

UK

Canopius

Dr. Ehud Shapira Holdings

Israel Insurance, Risk Management, Finance

Fmr. Chairman, Psagot Investment House; Chairman, Phoenix Holdings; Head of Corporate Division, Bank Leumi

Zohar Tal Israel Finance, Investments CEO of finance consulting firm; External Director, Adika Style Holdings & Insurance

Marilyn Victoria Hirsch Holdings & Insurance

US Insurance, Risk Management, Finance, Investments and IT Senior VP – Corporate Development & Capital Deployment, Allstate; Fmr.

Head of Strategy, AIG

Marc Vonk Insurance

UK Insurance, Risk Management, Finance, Investments Principal, Centerbridge; Director Belenus Lux, Sand Lux, and Fortuna

Rita Rubinstein Insurance

Risk Management, Finance Fmr. Member of Board of Management and Head of HR, Logistics & Administration

Roger Abravanel Holdings

Insurance, Finance, Investment, Strategy

Director, Caesar Stone. Fmr. Senior Director, McKinsey; Director of public companies including Admiral Insurance and Teva

Rachel Lavine Holdings

Finance, Investments Fmr. Director and CEO of public companies including Elscint, Plaza Centers, Atrium, Gazit-Globe; Director of Africa Israel Properties

Hila Confronti Insurance

Israel Insurance, Risk Management, Finance

Fmr. Deputy CEO & Chief Risk Officer, Clal Insurance; Credit Control, Bank of Israel

Division, Mizrahi Tefahot Bank

Italy

Israel's Economy Continues to Demonstrate Stable Growth

Robust and Growing Market for Institutional Asset Managers

Key Points

• » Consistent and robust growth in institutional investment mangers' AUM over the last 10 years
• » The industry has experienced strong tailwinds on the back of:
  • i. mandatory savings rate of 17.5% of gross earnings
  • ii. strong economic growth; and
  • iii. liberalisation of the market over the last decade, with the goal of encouraging competition and developing the local capital market
• » Ageing and growing population expected to keep driving demand for life policies and pensions

Split of AUM by Asset Class Split of AUM by Investment Product

| ³³

Legal remarks and details regarding the investment tracks which were the basis for the comparison in Slide 11.

The presented published periods: last 12 months: (11/19-10/20), last 3 years (11/17-10/20), last 5 years (11/15-10/20), standard deviation in yearly terms – last 5 years: (11/15-10/20) The presented yield returns are average gross nominal depending on the selected period, before deducting administration fees. There is no information about the ranks and returns achieved in the past to indicate the rating and returns that will be achieved in the future or commitment to any yield. Data sources: Nat Insurance Website, Provident Net and Pension Net.

Comprehensive Pension Fund: The Phoenix - Track 9974, Harel -Track 9823, Clal – Track 9654, Migdal - Track 8801 & Menorah Mivtachim – Average weighted spanning tracks 2040-2060.

Last 12 months (11/19-10/20): *Menorah Mivtachim – below are the subject tracks yields which were the basis for the weighted average: retirement target track 2050 track 2015 – 0.08%, retirement target track 2045 track 2016 – -0.56%, retirement target track 2050 track 2183 – -0.59%, retirement target track 2055 track 2184 – -0.72% and retirement target track 2060 track 8812 – -0.48%.

Last 3 years (11/17-10/20): *Menorah Mivtachim - below are the subject track yields which were the basis for the weighted average: retirement target track 2050 track 2015 – 4.34%, retirement target track 2045 track 2016 – 4.08%, retirement target track 2050 track 2183 – 4.03%, retirement target track 2055 track 2184 – 3.93% and retirement target track 2060 track 8812 – 3.94%. The yields returns are on investments and do not include demographic or actuarial surplus (deficit) yields.

Study Fund: The Phoenix - Track 964, Harel -Track 154, Clal – Track 456, Migdal - Track 579 & Menorah Mivtachim – Track 828.

Provident Fund: The Phoenix - Track 9916, Harel -Track 9774, Clal – Track 9651, Migdal - Track 9779 & Menorah Mivtachim – Track 9793. The Pension Fund, Study Fund & Provident Fund of the Phoenix are managed by The Phoenix Excellence Pension & Provident Fund Ltd. The comparison between the tracks is between companies that manage pension funds, provident funds and study funds in the five major insurance groups.

Insurance: general investment track in unit linked policies that have been produced since 2004 and on and that from 2016 is opened for new costumers in individual programs only. The Phoenix - Track until 50, Harel -Track 88, Clal – Track 99, Migdal - Track 17013 & Menorah Mivtachim – Track 18013. The Phoenix insurance policies are managed by The Phoenix Insurance Company Ltd. The comparison is between the five major insurance companies.

The aforementioned does not constitute advice and/or recommendation and/or opinion for the purchase of a pension product and/or Insurance product.