Phoenix Financial Ltd · TASE:PHOE
Phoenix Financial — Q1 2025 Earnings Presentation
45 slides from Phoenix Financial's earnings presentation, May 29, 2025
Slide 1: Q1 2025 Results
Q1 2025 Results Phoenix Financial May 29, 2025 1
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to purchase the Furthermore, the presentation includes data and assessments based Company’s securities or solicitation to receive such offers and is on external sources, the contents of which were not independently designed solely to offer in
Slide 3: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 3
Slide 4: Phoenix Financial | Company Overview
Phoenix Financial | Company Overview Figures for 2024 (pro forma IFRS-17) Leading financial group 525 NISb ($144b) 20% AUM1 AUM 5-year CAGR2 5% Ongoing buybacks Insurance Asset Management Dividend yield Annual program P&C, Life & Health Wealth & Investments, Retirement, Brokers & Advisors (Agencies)
Slide 5: Israel Economy | Main Indicators
Israel Economy | Main Indicators Long-term GDP Growth 2 GDP per Capita 3 Long-Term Savings AUM 4 positive Percent USD ‘000 NIS Trillion 9.8% structural War 2.8 2.8 Sweden 58 trends (e.g., 6.3% 2.4 2.3 2.4 1.9 2.0 wealth 4.3% 3.8% 3.4% 4.0% Germany 55 1.6 accumulation, 1.9% Israel 54 1.0% demographic
Slide 6: Q1 2025 | Financial Highlights
Q1 2025 | Financial Highlights Continued growth in core income to 626 NISm (23.6% core ROE) driven by accelerated growth in Asset Management (+43% QoQ) and positive 230NISm effect of IFRS-17 in Insurance 568NISm 21.3% Reduced volatility due to diversification, changing mix, and lower Comprehensive I
Slide 7: Q1 2025 | Continued Growth in Core Activities
Q1 2025 | Continued Growth in Core Activities Income Comprehensive, after tax, NISm IFRS 4 IFRS 17 2,316 2,369 73 2,087 327 630 1,450 1,353 1,093 585 1,124 Core Asset Management 450 Q1 Accelerated 43% growth across Non-Operating Effects 752 390 segments, primarily FRE (Fee-Related 1,666 Earnings) 31
Slide 8: Investments | Core Capabilities
Investments | Core Capabilities Returns – Insurance Nostro / Corporate Account Asset Allocation - Corporate Account (Nostro) Percent (nominal) Percent (March 31, 2025) 10.6% Alternatives & other Cash 7.4% 2% 11% 5.9% 4.8% 4.5% Real estate 13% Fixed income (Govt) 37% 2.5% 2.5% ~70% 1.9% fixed Public
Slide 9: Dividends | Quarterly Payout & Track Record
Dividends | Quarterly Payout & Track Record Dividend: 230 NISm quarterly dividend Dividend & Buyback announced; policy at least 40% from annual income From annual income, NISm Dividend distributed quarterly (updated from Average dividend 1,017 previous semi-annual policy) yield above 5% 182 Buybacks
Slide 10: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 10
Slide 11: Core Income Growth | Targets to be Updated During 2025
Core Income Growth | Targets to be Updated During 2025 Core Income NISm, before non-operating Phoenix Financial effects (capital markets, 2,400-2,600 interest rates, & special 2,296 items) 400-600 Additional 1,760 potential 1,180 1,322 866 2,000 601 626 2020 2021 2022 2023 2024 2024 Q1/25 2027 IFRS
Slide 12: Group Strategy | Value Drivers to Capture Opportunity
Group Strategy | Value Drivers to Capture Opportunity Accelerated Innovation & Active Capital & Investments Growth Efficiency Management Management in profitable & to increase competitive of people, culture & to maximize performance capital-efficient activities advantages structure Value Catalysts I
Slide 13: Value Creation | Runway Beyond 2027
Value Creation | Runway Beyond 2027 Value creation over time Significant opportunities & We are here strong trends Execution toward Driving Next Wave Global trends of convergence 2027 targets between asset management and insurance, AI, growth in private markets Israel trends of rapid wealth Growing
Slide 14: Compounding AUMs | Continued Growth
Compounding AUMs | Continued Growth 2027 Target 600-650 NISb Assets Under Management NISb, end of period 525 529 117 118 Retirement - Pension +20% CAGR 433 369 371 92 53 67 123 125 Retirement - Provident Asset 113 Management 234 117 111 215 37 135 132 Wealth & Investments 178 31 35 90 24 34 70 66 30
Slide 15: Growth Engines | Continued EBITDA Growth
Asset Management Growth Engines | Continued EBITDA Growth 2027 Target Growth engines include Asset Adjusted EBITDA for Asset Management NISm, consolidated including Management, Brokers (Agencies) minorities 1.6-1.8 NISb & Finance (Credit) Significant FRE (Fee-Related Targets to be Earnings) updated
Slide 16: Wealth, Investments & Retirement
Asset Management Wealth, Investments & Retirement Description: AUM Core Income, net Investment House (Funds & ETFs, NISb NISm, before non-operating effects +19% CAGR Brokerage, Portfolios, ESOP, W) Wealth (private markets) 407 411 300-400 305 Retirement (Pension & Provident) 295 Investment Policies
Slide 17: Brokers & Advisors (Agencies)
Asset Management Brokers & Advisors (Agencies) Description: Revenues Core Income, net Objective advisor benefit administration, NISm NISm, before non-operating effects retirement planning, & insurance (life, 250-350 health, P&C, specialties) Independent Brokers (Agencies) providing 176 147 154 159 a
Slide 18: Financing (Credit) | Phoenix Gama
Asset Management Financing (Credit) | Phoenix Gama Description: Credit card solutions Finance (Credit) Portfolio Core Income, net NISb, including mergers NISm, before non-operating effects SME lending Construction finance (merged 2024) 150-200 3.8 Consumer Credit (launched 2024) 3.4 El Al Frequent F
Slide 19: Insurance | Strong Performance & Transition to IFRS 17
Insurance Insurance | Strong Performance & Transition to IFRS 17 Activities: Insurance Gross Premiums NISb, not including contributions P&C (motor, property, liabilities) to savings & investment policies 9.4 8.6 0.9 Life (risks, unit-linked savings) 7.5 1.2 7.8 Health (medical expenses, critical 6.6
Slide 20: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 20
Slide 21: Q1 2025 | Accounting & Reporting Changes
Q1 2025 | Accounting & Reporting Changes Transition to IFRS-17 in Insurance, including creation of 10 NISb CSM & changes in P&L structure As part of accounting change, Core Income normalization updated from 3% real yields to nominal risk free rate plus 2.25%, to facilitate stability in core reportin
Slide 22: Q1 2025 | Income by Source
Q1 2025 | Income by Source Breakdown Before Tax – By Segment NISm Q1-25 Q1-24 Difference P&C 215 190 25 Core Income Breakdown (Comprehensive) Health 237 214 23 Q1 2025, NISm Life 106 127 (21) Other Equity Returns 73 64 9 Core Insurance 631 595 36 Retirement 42 30 12 Wealth & Investments 124 91 33 (1
Slide 23: Q1 2025 | Income by Segment
Q1 2025 | Income by Segment Segment Income Breakdown (Comprehensive) Q1 2025, NISm 856 21 51 113 (250) 108 (38) 568 (30) 39 105 220 229 P&C Health Life Other Retirement Wealth & Brokers & Finance Other Income Tax Miniority Q1/25 Equity Investments Advisors (Credit) before Tax Returns (Agencies) & Mi
Slide 24: Balance Sheet | Strong & Liquid
Balance Sheet | Strong & Liquid Bonds and Loans 31/03/2025 31/12/2024 Floating Fixed IFRS 17 CPI linked interest interest Total Total Phoenix Financial NISm 31/12/2024 31/03/2024 31/03/2025 Q1/24-Q1/25 Financial Solo* 1,138 397 947 2,482 1,875 Cash 2,742 2,729 2,556 )173( Insurance Intangible Assets
Slide 25: Capital Management | Solvency and Liquidity
Capital Management | Solvency and Liquidity Solvency ratio (Insurance Company) Solvency II implementation Cashflow & Liquidity (at traded company level) Solvency II implemented in Israel in line with international standards, with strong regulatory Insurance subsidiary quarterly dividend 211% oversig
Slide 26: IFRS 17 & 9 | Positive Impact on 2024 Income
IFRS 17 & 9 | Positive Impact on 2024 Income Comprehensive Income & Core Income Highlights Pre-tax Income Breakdown 2024 (before tax), NISm 2024 (after tax), NISm Positive impact IFRS 17&9 988 IFRS 4 884 Difference 104 +282 P&C 2,369 887 348 539 Health 73 Increase of 536 NISm to 2024 core 436 205 23
Slide 27: IFRS 17 & 9 | 2024 Quarterly Stability v. IFRS 4
IFRS 17 & 9 | 2024 Quarterly Stability v. IFRS 4 Comprehensive & Core Income IFRS-4 IFRS- 2024 (after tax), NISm 17 803 756 723 52 617 209 593 Average quarterly 383 385 160 510 381 522 18 Core Income 143 under IFRS-17 143 146 82 158 154 173 159 284 152 146 Core Asset Under IFRS 17, 129 511 Managemen
Slide 28: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 28
Slide 29: Insurance P&C
Insurance P&C Continued growth and profitability across sub- Comprehensive Income Before Tax segments despite competitive market & high theft NISm frequency 229 4 Optimized use of machine learning for motor (24) 34 underwriting Positive impact of investments & interest rates 215 Core Income Q1/24 Q1
Slide 30: Health
Insurance Health IFRS 17 implemented in 2025 (2024 figures are Comprehensive Income Before Tax pro forma IFRS 17) NISm Improvement in underwriting profit 220 (32) -0 Health Insurance reform implemented in Israeli 15 market during 2024 Focusing growth on high-ROE, capital-efficient products Negative
Slide 31: Life & Savings
Insurance Life & Savings Decline in Core Income, with increase in Comprehensive Income Before Tax Comprehensive Income NISm Positive non-operating effects mainly due to interest rate effects, partially offset by investment profit below (30) 105 RF +2.25%. Special items include losses on loss compone
Slide 32: Other Equity Returns (Insurance)
Insurance Other Equity Returns (Insurance) Negative capital market Comprehensive Income Before Tax effects compared to positive NISm effects in 2024 73 (111) 8 (30) Financial Margin Investments Special Items Q1/25 Q1/24 64 67 10 141 Difference 9 (178) (2) (171) Note: Core income based on nominal ris
Slide 33: Wealth & Investments
Asset Management Wealth & Investments Including Phoenix Capital Partners Strong growth in Mutual Funds & Comprehensive Income Before Tax (with alternatives) ETFs NISm & investment policies Synergies from acquisitions completed in 2023-24 achieved 16 (16) 108 -0 in 2024, including Epsilon & assets fr
Slide 34: Retirement (Pension & Provident)
Asset Management Retirement (Pension & Provident) Continued organic growth Comprehensive Income Before Tax NISm Focus on profitability including higher margin / 42 efficient activities (3) 39 0 Pension 16 Provident 26 Core Income Investments Special items Q1/25 Non-Operating Q1/24 30 1 - 31 Differen
Slide 35: Brokers & Advisors (Agencies)
Asset Management Brokers & Advisors (Agencies) 38% growth in core income Comprehensive Income Before Tax quarter on quarter NISm Continued organic growth leading 113 to higher core income, despite 15 negative effects of slower pace of (4) hiring in the market (including in tech sector) Continued ino
Slide 36: Financing (Credit) | Phoenix Gama
Asset Management Financing (Credit) | Phoenix Gama Continued improvement in pre-tax Comprehensive Income Before Tax income due to synergetic merger of NISm Construction Finance in 2024, growing credit card clearing turnover, Turnover Credit Key Financials (NISm) Q1/24 Q1/25 51 (3M) portfolio & SMEs
Slide 37: Other
Other Segment includes Comprehensive Income Before Tax Phoenix Financial NISm (formerly Phoenix Holdings) solo profits (including RT1 holding) as well as other items 9 Restructured to improve 0 0 capital & investments 21 efficiency 12 Financial Subsidiaries Other Special Items Q1/25 Margin Q1/24 10
Slide 38: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 38
Slide 39: IFRS 17 & 9 | Additional Comments & Analyses
IFRS 17 & 9 | Additional Comments & Analyses CSM Description CSM: Net Changes in Q1 2025 Accounting Sensitivity to Rates NISb IFRS 17 introduces concept of CSM During the transition from IFRS 4 to IFRS 17, there (Contractual Service Margin) for the was a reduction in the sensitivity of liabilities t
Slide 40: Best in Class ROE
Best in Class ROE Return on Equity 1 year (2024) 3 years average (2022-24) 5 years average (2020-24) 10 years average (2015-24) Phoenix 18% 13% 17% 14% A 18% 12% 15% 12% B 12% 6% 11% 11% C 11% 4% 11% 8% D 11% 4% 10% 7% 40 Source: EY analysis taken from BI Insuretool for years 2015-24; ROE was calcul
Slide 41: Positioned to Capture Opportunities
Positioned to Capture Opportunities Insurance Penetration Insurance Premiums Assets Under Management Premiums out of GDP, % 2022 2024, P&C, Health, Life (Risk) 2024, By Institutional investors Phoenix US 12% 16% 20% 21% 28% 31% UK 11% 55 3.3 16% Italy 7% 12% NISb 16% 14% Phoenix NISt 10% 11% Germany
Slide 42: Growth & Value Drivers
Growth & Value Drivers Strong market position with distinctive growth & performance 1 Phoenix Financial is the premier financial group in Israel with over $140 billion assets under management, delivering compounding AUMs with 20% annual growth and best-in-class 17% average ROE over 5 years. Trading
Slide 43: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 43
Slide 44: Glossary
Glossary Adjusted EBITDA - calculated as income before finance, taxes, depreciation and amortization in the relevant areas of activity; adjustments as detailed below: Investment House - IFRS 16 adjustment and special items Adjusted EBITDA Retirement (Pension and Provident) - IFRS 16 adjustment and a
Slide 45: Glossary
Glossary 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 Finance (Credit) risk rati