Phoenix Financial Ltd · TASE:PHOE
Phoenix Financial — Q1 2020 Earnings Presentation
30 slides from Phoenix Financial's earnings presentation, June 2020
Slide 1: Financial Statements Investors Presentation
Financial Statements Investors Presentation 1
Slide 2: Disclaimer
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 presentati
Slide 3: From the CEO's Desk
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 fin
Slide 4: Israel's Leading Insurance Group: Q1 results, recovery post reporting date
- Israel’s Leading Insurance Group Q1 results, recovery post reporting date (1) » AUM – NIS 196 B as of March 31, 2020, NIS 209 B as of June 16, 2020 (2) » Market cap. – NIS 4 B » Shareholders’ equity. – NIS 6.1 B » Shareholders’ comprehensive Loss – NIS (577) M (3) » Covid-19 negative impact – NIS
Slide 5: Supporting our customers, agents and employees
Supporting our customers, agents and employees… Supporting Assisting Helping our customers agents employees » 3 months complementary » Advancing commission » Financial aid fund for risk coverage for customers payments for agents employees in need put on unpaid leave for NIS 7.5mn » Allowing delayed
Slide 6: Ensuring business continuity and lowering expenses
… while ensuring Phoenix business continuity and lowering expenses Ensuring business Lowering cost and continuity managing expenses » Setting up infrastructure for » Lateral salary decrease across the 100% remote working company for managers and employees who earn over NIS 7,000 » Building performan
Slide 7: Overall loss driven by investments and deficit in variable management fees
Overall loss driven by investments and deficit in variable management fees mainly in Insurance, improvement in underwriting results NIS (932m) (1) -959 Covid-19 impact (-251%) 382 the Company loss NIS 932m, -369 mostly due to investments +35 losses -421 NIS 628(2) -3 -11 -5 Investments Post Covid-19
Slide 8: Premiums and benefit contribution remain unchanged despite COVID-19
Premiums and benefit contribution remain unchanged despite the COVID-19 Premiums & Benefit Contribution (NIS m) +1,885 -77 (+12%) (-2%) +1,782 +381 (+13%) (+2%) 18,127 4,513 4,436 Premiums and Benefit 15,861 16,242 2,762 685 583 -102m Contributions remain 14,079 2,549 2,867 unchanged despite the 4,0
Slide 9: Lower AUM due to COVID-19, recovery post reporting date
Lower AUM due to COVID-19, recovery post reporting date AUM (NIS b) +36 AUM (+20%) +13 +6 (+7%) Recovery post reporting date 214 8 (3%) 209 196 10 190 28 10 178 8 23 Customers portfolio 10 21 16 25 16 ETF 23 14 31 13 Mutual funds 31 12 28 26 Pension 24 34 32 32 31 Provident 30 26 28 24 27 Nostro 24
Slide 10: Investments losses drive overall loss, decrease in underwriting profit
Investments losses drive overall loss, decrease in underwriting profit mainly due to Proforma Post reporting date investments (2) Comprehensive income before tax drivers (NIS m) +NIS 223m -369 (-253%) Covid-19 impact 146 Compulsory motor Motor property Investment loss NIS 268m A -32 Property and oth
Slide 11: Health: offset by improvement of reserve
offset by improvement of reserve Proforma Post reporting date investments (1) Comprehensive income before tax drivers (NIS m) +NIS 49m +34 Covid-19 (2) (+227%) Covid-19 impact Investment loss NIS 83m (312) (10) (219) (83) 125 -118 49 Post reporting date 15 27 Investments show significant Comprehensi
Slide 12: Financial market turmoil and deficit in variable management fees drive losses
Financial market turmoil and deficit in variable management fees drive losses Proforma Post reporting date investments (1) Comprehensive income before tax drivers (NIS m) +NIS 234m -422 (-255%) 165 Covid-19 impact • Investment loss NIS 311m • Variable management fees were not collected due to -406 i
Slide 13: Losses due to investments, significant recovery post reporting date
Losses due to , significant recovery post reporting date Proforma Post reporting date investments (1) Operating profit before tax by source (NIS m) +NIS 446m -681 (-458%) Covid-19 impact 149 -29 Investment loss NIS 512m Covid-19 (3) -634 (512) (512) Post reporting date -3 -16 Investments show signif
Slide 14: V-shaped indicator reflects post reporting date recovery
V-shaped indicator reflects a post reporting date recovery to near pre-crisis levels Main Market Indices CPI / FX Stocks Bonds +20.9% +20.0% +19.4% Covid-19 impact +13.1% +12.9% Financial turmoil in the local +11.5% +11.6% and global financial markets +9.0% +6.4% +5.0% +4.7% +4.8% +5.4% +4.5% +4.6%
Slide 15: V-shaped indicator reflects post reporting date recovery
V-shaped indicator reflects a post reporting date recovery to near pre-crisis levels Nostro OPM Pro-forma calculation before tax: 1.1.20 – 16.06.20 Post reporting date investments – NIS 952m MF Deficit 31.03.20 – (517) +0.8% 0% 0% -0.2% Covid-19 impact 16.06.20 – (243) • Nostro account suffers +7.6%
Slide 16: Strategy
ST @: RATEGY
Slide 17: Promoting innovation, improving service, developing growth engines
Promoting innovation Supporting insurtech and startup’s through PIX accelerator 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 channel
Slide 18: Innovation
INNOVATION Whnoenix
Slide 19: Pay as you Drive motor insurance
Phoenix accelerator Motor Insurance (P&C) Smart, advanced products Pay as you Drive Pay as you Drive Innovative motor insurance that lets you pay only for the distance you drive 19 Dummy Text
Slide 20: Young drivers motor insurance
Phoenix accelerator Motor Insurance (P&C) Smart, advanced products young drivers Young drivers New drivers pay only when they drive and save thousands of shekels 20
Slide 21: Rotorcraft insurance
Phoenix accelerator ROTORCRAFT (P&C) Smart, advanced products Rotorcraft insurance Pay insurance only for flight time, in the safest route 21
Slide 22: Travel insurance
Phoenix accelerator TRAVEL (Health) Smart, advanced products Travel insurance Revolutionary service that locates physicians abroad, schedules an appointment, and pays the physician for you 22
Slide 23: Digital Self-Service
oenix Digital Self — Service
Slide 24: On-Line Claims Service
Customer experience On-Line Claims Service Self-Service ,שלום מיכל ?איך אפשר לעזור 24
Slide 25: Customer self service portal
Customer experience Customer self service portal Self-Service International Travel Insurance Extension Smart Search Engine For Service Document Orders Capital Declaration Redemption Status Providers and Tax Forms Payment Breakdown Loan Eligibility Payment Charges Inquiries Method Update Breakdown Cl
Slide 26: Appendix
EY Appendix
Slide 27: Non GAAP impact adjustments
NIS (932m) Non GAAP impact adjustments Adjustments of the impact reported at the financial statements to the economic impact of COVID-19. Financial Statements (Pre Tax)1 Total Economic Investment Underwriting Total Total impact covid-19 NIS m Interest (2) impact Tax Loss Impact impact (pre tax) Impa
Slide 28: Phoenix Holding – Balance Sheet As of 31/03/2020
Phoenix Holding – Balance Sheet As of 31/03/2020 (NIS m) Assets 31.03.2020 31.12.2019 Equity and Liabilities 31.03.2020 31.12.2019 Decrease of approximately 10% in Liabilities in respect of total assets for yield dependent Total assets for yield-dependent contracts in yield-dependent insurance 64,49
Slide 29: 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 CI Comprehensive Income CO Corporate, Other and Consolidation Consumer Price Index; measures the average change of prices in an agreed upon basket of
Slide 30: Thank You
Thank You Israel’s most profitable insurance group Financial Statements Investor Presentation 30