Harel Insurance Investments & Financial Services Ltd. · TASE:HARL

Harel Insurance Investments & Financial Services — Q1 2015 Earnings Presentation

13 slides from Harel Insurance Investments & Financial Services's earnings presentation, May 2015

1. Slide 1: Summary of financial results for the period 1-3/2015

   Summary of financial results for the period 1-3/2015 Harel Insurance Investments & Financial Services Ltd. May 2015

2. Slide 2: Disclaimer

   Disclaimer This document has been prepared by Harel Insurance Investments and Financial Services Ltd. (hereinafter: the Company) solely for the purpose of presenting the Company's business. The information contained in this document has not been independently verified. No representation or warranty

3. Slide 3: Comprehensive income after tax and ROE in NIS million

   Comprehensive income after tax and ROE in NIS million (in annual terms) Comprehensive income 705 686 533 281 * 155 2012 2013 2014 Q1 2014 Q1 2015 Return on Equity 22% 18% 16% 11% 12% 2012 2013 2014 Q1 2014 Q1 2015 * Including an increase in the insurance liabilities in respect of revised discounting

4. Slide 4: Earned premiums and benefit contributions, gross (NIS million)

   Earned premiums and benefit contributions, gross (NIS million) 2012 % Increase 2013 2014 % Increase 1-3/2014 1-3/2015 Li fe a s s ura nce 3,297 0% 3,810 3,797 26% 957 * 1,207 Hea l th i ns ura nce 2,850 12% 3,192 3,571 13% 845 955 Non-l i fe i ns ura nce 2,906 3% 3,103 3,198 (2%) 774 761 Ins ura nce

5. Slide 5: Assets under management (AUM) and nostro assets (NIS billion)

   Assets under management (AUM) and nostro assets (NIS billion) * 200 Portfolio management 184.8 179.3 180 8.9 8.9 ETNs 161 16.4 160 15.3 8.5 Mutual funds 12.1 140 33.0 33.7 119.1 Provident funds 120 32.9 2.9 100.3 101.5 6.0 29.8 29.0 Pension funds 100 2.3 3.6 19.5 83.2 3.1 3.6 27.2 1.8 20.8 17.0 Insu

6. Slide 6: Comprehensive income before tax from operating segments (NIS million)

   Comprehensive income before tax from operating segments (NIS million) 2012 2013 2014 Q1 2014 Q1 2015 Long-term savings 357 432 164 143 (27) Health 225 202 140 59 (19) Non-life insurance 317 219 287 147 131 Finance (20) (12) 5 2 1 Insurance companies overseas 16 27 64 11 23 Other capital 205 221 160

7. Slide 7: Non-life insurance segment – comprehensive income before tax (NIS million)

   Non-life insurance segment – comprehensive income before tax (NIS million) 2012 2013 2014 Q1 2014 Q1 2015 Compulsory motor 187 112 129 61 65 Motor property 11 24 34 16 12 Property and other branches 42 25 47 14 12 Liabilities and other branches 36 4 13 29 10 Mortgage insurance 41 54 64 27 32 Total 3

8. Slide 8: Life assurance and long-term savings segment - comprehensive income before tax

   Life assurance and long-term savings segment - comprehensive income before tax (NIS million) 2012 2013 2014 Q1 2014 Q1 2015 Life assurance 250 346 40 115 (59) Pension 51 57 69 17 19 Provident 56 29 55 11 13 Total 357 432 164 143 * (27) 500 432 400 357 29 57 56 300 51 200 164 143 346 250 55 11 100 17

9. Slide 9: Financial services segment (NIS million)

   Financial services segment (NIS million) 2012 2013 2014 Q1 2014 Q1 2015 Revenues 195 254 304 70 81 Comprehensive income before taxes 15 27 64 11 23 EBIDTA 21 50 83 15 27 304 254 195 83 70 81 50 64 15 21 27 11 15 23 27 Q1 2014 Q1 2015 Revenues Comprehensive income before taxes EBIDTA Harel Insurance

10. Slide 10: Equity – Harel Investments (NIS million)

    Equity – Harel Investments (NIS million) 4,881 4,724 4,512 4,152 Q1 2015 Dividend (NIS million) * 64 308 320 - Dividend yield (%) 2.3% 7.6% 7.5% - * On April 28, 2015, after the balance sheet date, the Company’s Board of Directors approved the distribution of a cash dividend in the amount of NIS 128

11. Slide 11: Capital surpluses – Harel Insurance (NIS million)

    Capital surpluses – Harel Insurance (NIS million) Surplus capital Required capital 7,000 6,326 6,341 5,720 6,000 898 1,085 947 5,000 4,000 3,000 5,241 5,443 4,773 2,000 1,000 0 2013 2014 Q1 2015 Harel Insurance Investments & Financial Services Ltd 11

12. Slide 12: EV (NIS million) EV VIF

    EV (NIS million) 2012 % Increase 2013 2014 EV 9,142 10% 11,122 12,256 VIF 6,513 12% 8,216 9,212 VNB 994 7% 1,219 1,304 * Including life assurance, health insurance and pension funds. Harel Insurance Investments & Financial Services Ltd 12

13. Slide 13: Insurance & Finance

    Insurance & Finance

Harel Insurance Investments & Financial Services — Q1 2015 Earnings Presentation on 6ix