Investments Ltd Investor Presentation March 31, 2017 I.D. I.D. - - PowerPoint PPT Presentation

Investor Presentation March 31, 2017

Investments Ltd

I.D.

I.D.

Meitav Dash is a public company with extensive experience and expertise in asset management. Meitav Dash is one of the two leading investment firms in Israel, with total assets under management of NIS 126 billion.

A1 125

NIS Million NIS Million

As at 30.3.17

Bond Rating In the TA-125 Index Shareholders Equity Market Value Total Assets Under Management Dividend Distribution Policy

770

As at 31.3.17

1,042

NIS Billion At least of net profit

126 50%

As at 31.3.17

BRM 28.26% Zvi Stepak 27.16% Shares held by the public 37.96%

As at 31.3.17

Shareholders

Range of Products and Services

Core Activities

AUM as at 31.3.17 in NIS Billion

27.3

ETNs Provident Funds, Study Funds and Pension Funds

27.9 48.6 18.3

Mutual Funds

Portfolio Management

Other Activities

Meitav Dash Capital Markets College Meitav Dash Trade Meitav Dash Brokerage Meitav Dash Global Markets Peninsula - SME Credit E-Loan - Consumer Credit Insurance Agencies

Revenue in Q1 2017

Other =Insurance Agencies , College, Global Markets, etc.

Provident Funds, Study Funds and Pension Funds NIS 83million % 37 Mutual Funds & Portfolio Management NIS 55million 25% ETNs NIS 31million 14% Other NIS 22 million 10%

223

Total Revenue

NIS Million

Trade & Brokerage NIS 19 million 8% Peninsula NIS 13 million 6%

Selected Financial Data

Q1-2017 2016 Q4-2016 Q1-2016 NIS million 122,122 115,691 115,691 116,267 AUM 223 775 197 182 Revenue 168 592 164 138 Total expenses 63 207 40 50 EBITDA 61 208 38 49 Normalized EBITDA 42 134 23 35 FFO 35 112 23 31 Profit excluding amortization 26 88 16 26 Profit for the period

EBITDA Q1 2017 43 Profit before tax 14 Depreciation and amortization 6 Financing expenses, net 63 EBITDA FFO Q1 2017 26 Profit for the period 14 Depreciation and amortization (2) Revaluation of debentures 4 Other 42 FFO

• 1. Core activities: mutual funds, provident funds, study funds and pension funds, ETNs and portfolio management

1

Growth Engines

Credit Insurance Digital

Strategic Partners

• Digital Pension Funds
• Digital Study Funds
• Digital Inv. Provident Funds

Share Acquisition Deal- Meitav Dash Investments Ltd. (“The Company”)

• On 30.11.16, the Company signed a merger agreement with the XIO Fund (“The Fund”), in which the Fund will acquire the entire issued and paid-up share capital of the Company,

in way of a reverse triangular merger (“The Acquisition Deal”). Within the deal’s framework, the Company’s shares shall be acquired from the Company’s shareholders, in exchange for payment through one of the following alternatives, at the shareholders’ choosing: (a) “The cash alternative”- a cash payment of 22 NIS per share; or (b) “The other alternative”- a combined payment, totaling 27.4 NIS per share, out of which, 13.7 NIS shall be paid in cash, and the shareholder shall receive one non-tradable debenture, to be issued by a fully owned subsidiary of the Fund, with a principal amount of 13.7 NIS per share. The debenture component of the other alternative shall be paid in three payments within one year, two years and three years, from the closing date of the Acquisition Deal, and shall have an annual interest rate of 2%, that shall be paid in one payment, within three years of the closing date of the Acquisition Deal. Notwithstanding the abovementioned, in certain circumstances, some of the debenture’s principal payments may be postponed to a period within five years of the closing date of the Acquisition Deal.

• According to the Acquisition Deal’s terms, the payment of the cash alternative and the cash component of the other alternative, may be adjusted prior to the closing date of the

Acquisition Deal, due to a deviation of the Company’s net financial debt goal for the closing date, as was determined in the Acquisition Deal. Furthermore, an amount no larger than 20% of the last principal payment of the debenture component of the other alternative may be setoff from said payment, due to payments that may arise from court procedures that have been mentioned in the Acquisition Deal agreement and as a result of losses that may derive from some of the Company’s hedging transactions .

• The Acquisition Deal’s closing and completion is subject to a number of pending warranties, including the approval of the Acquisition Deal by the Company’s general

shareholders assembly and the acceptance of regulatory confirmations required for the undertaking of the Acquisition Deal, including controlling permits of the Company. It should be clarified, that as of this day, there is no guarantee that all required regulatory approvals shall be received, or that all pending warranties shall be executed, for the closing and completion of the Acquisition Deal. Therefore, there is no certainty that the Acquisition Deal shall be completed.

• For details regarding the breach notice the Company submitted to the XIO Fund, due to the lack of submission of all the required requests, in order to receive the regulatory

approvals required to complete the transaction, the period in which the XIO Fund may remedy the violations of the merger agreement and the notice given to the Company by the XIO Fund according to which, the XIO Fund is acting towards submitting all said applications, see the Company's immediate reports dated: April 27, 2017, reference no. 2017-01- 043437 and dated March 19, 2017, reference no. 2017-01-025404, respectively.

• For further details regarding the Acquisition Deal and the Acquisition Deal’s terms and conditions, please see the Company’s immediate report from 1.12.16, reference number:

2016-01-135283 (http://maya.tase.co.il).

• The XIO Fund is a global private investment fund, situated in London, that manages an approximate capital of 5 billion USD, designated for global investments. The Fund operates

in Britain, USA, Germany, Switzerland, Israel, Hong-Kong and China, and it’s managers are veterans of the global investments industry.

Acquisition by XIO

Segments Analysis

Provident Funds, Study Funds & Pension Funds

AUM Provident Funds NIS 20.2 billion Study Funds NIS 21.8 billion Pension Funds NIS 6.6 billion

48.6 10 3%

AUM in NIS Billion Market share

• On January 1, 2017, NIS 7.5 billion of Ayalon Provident Funds and Pension Funds assets were merged. Currently the largest pension

fund among the investment houses, with assets of more than NIS 6 billion and annual deposits of over NIS 1 billion.

• Elected by the MOF in Nov. 2016 as managers of the default pension fund with over 20,000 new savers added since.

Q1-2017 2016 Q4-2016 Q1-2016 NIS million 48,630 41,452 41,452 40,587 AUM 86 280 69 71 Revenue 0.68% 0.68% 0.67% 0.70% Annualized Management Fees 10 44 4 14 Operating Profit

As at 31.3.17

ETNs

27 3

AUM in NIS Billion

29 4%

Market share

• Largest ETN company in Israel in terms of AUM
• Wide range of products, professionalism and high trading capabilities

As at 31.3.17

Q1-2017 2016 Q4-2016 Q1-2016 NIS million 27,239 28,136 28,136 29,417 AUM 31 124 28 30 Revenue 0.45% 0.42% 0.39% 0.40% Annualized Management Fees 14 59 10 15 Operating Profit

Mutual Funds & Portfolio Management

27 9

NIS Billion

12 7%

Market share

18 3

NIS Billion

AUM Mutual Funds Traditional Funds NIS 20.2 billion Money Market Funds NIS 4.9 billion Tracking Funds NIS 2.8 billion

Q1- 2017 2016 Q4- 2016 Q1- 2016 NIS million

27,921 27,485 27,485 27,224 AUM Mutual Funds 18,348 18,618 18,618 19,039 AUM Portfolio Management 55 211 52 52 Revenue 0.90% 0.89% 0.87% 0.89% Annualized management fees from traditional funds* 0.16% 0.17% 0.16% 0.17% Annualized management fees from money market funds 0.32% 0.34% 0.33% 0.34% Annualized management fees from portfolio management 20 75 19 18 Operating profit

*Excluding tracking funds As at 31.3.17

Portfolio Management

Financial Statements

Balance Sheet (In NIS millions)

As at March 31, 2017 As at December 31, 2016 568 449 Cash and short-term investments 27,819 28,608 Current investments to cover ETNs 597 576 Other current assets 28,984 29,633 Total current assets 142 128 Long term investments 1,212 1,109 Fixed assets and intangible assets 20 22 Deferred taxes 30,358 30,892 Total assets As at March 31, 2017 As at December 31, 2016 554 507 Credit from banks and

• thers

27,208 28,104 ETNs, liabilities and deposit 589 484 Current liabilities of special purpose subsidiaries to cover ETNs, liabilities and deposit 86 41 Liabilities for short sale of securities 227 165 Trade and other payables 28,664 29,301 Total current liabilities 113 117 Loans from banks 494 495 Debentures 202 212 Other long term liabilities 770 699 Equity 115 68 Non-controlling interests 30,358 30,892 Total liabilities and equity Debt to EBITDA excluding Peninsula Debt excluding Peninsula Debt to EBITDA Debt 1.1 286 2.7 679 Net* 2.9 730 4.6 1,161 Gross

*Including liabilities for short sale of securities.

Profit and Loss (in NIS millions)

Q1 2017 2016 Q4- 2016 Q1- 2016 210 749 184 182 Revenues from management fees, commissions, ETN and other 13 26 13

• Revenues from Peninsula

223 775 197 182 Total Revenues 168 592 164 138 General and administrative expenses, marketing, sales, and financing expenses from Peninsula. 55 183 33 44 Operating income 1 (1) (2)

• Profit (loss) from securities held for investment

purposes in nostro portfolio, net (6) (31) (7) (2) Financing expenses, net (8) (24) (6) (5) Other expenses, net 1 6 2 2 Company's share in earnings in equity accounted investees 43 113 20 39 Profit before taxes on income 17 45 4 13 Taxes on income 26 88 16 26 Profit for the period

This presentation was prepared by Meitav Dash Investments Ltd (hereinafter: the “Company” or “Meitav Dash”) and is intended for institutional investors only. This presentation does not comprise an opinion, suggestion, recommendation, or advice / marketing for purchase and / or holding and /or sale of securities and / or financial assets (including securities of the Company and / or financial assets issued by Companies in the Meitav Dash Group). The presentation is not a substitute for advice / investment marketing or counseling / pension marketing that takes into consideration the special needs of each person. This presentation is intended only for delivery and presentation of information provided and its presentation does not replace the need to review reports published by the Company to the public. That shown is the opinion of the authors alone and reflects their understanding at the date of the presentation. The data, information, and analysis set forth, including the views expressed, in this presentation, may change without notice. Certain matters discussed in this presentation, including projections, objectives, assumptions, estimates and other information relating to future events and / or future matters whose occurrence is uncertain and is not controlled by the Company, including, but not limited to, information regarding the signing of the share acquisition deal, as described in slide 8 of this presentation, and information in connection with a forecast of revenues and profitability, are all forward-looking statements as defined in the Securities Law, 1968, that is based on the subjective assessments of the Company’s management based on data and information held by the Company at the date of preparation of the presentation. Realization or non-realization of forward- looking statements will be affected by, among other things, risk factors characterizing the activity of the Company and, developments in the general environment and external factors affecting the activity of the Company, which cannot be estimated in advance and are not under the control of the Company. The Company’s operating results may differ materially from estimated or implicit results stated in the presentation.

Thank you

www.meitavdash.co.il ChampionTower, 30DerekhSheshetHayamin, BneiBrak Phone: 972-3-7903000 Fax: 972-3-7778001