Phoenix Financial Ltd · TASE:PHOE
Phoenix Financial — Q2 2025 Earnings Presentation
48 slides from Phoenix Financial's earnings presentation, Aug 25, 2025
Slide 1: 2025 Q2 Results
2025 Q2 Results Phoenix Financial August 25, 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 H1/2025 Leading financial group 560 NISb ($165b) 20% AUM AUM 5-year CAGR1 5% Ongoing buybacks Insurance Asset Management Average Dividend yield6 Annual program P&C, Life & Health Wealth & Investments, Retirement, Brokers & Advisors (Agencies) & Financ
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 NIS Trillion 9.8 structural War 2.8 2.9 Sweden 58 trends (e.g., 6.3 2.4 2.3 2.4 wealth 4.3 4.6 Germany 56 1.9 2.0 3.8 3.3 1.6 accumulation, 1.9 2.4 Israel 54 Covid 1.0 demographics,
Slide 6: 2025 Q2 & H1 | Key Figures
2025 Q2 & H1 | Key Figures Q2/25 928NISm 3.7NIS 35.2% Comprehensive Income Comp. Income per Share ROE 1,496NISm 6.0NIS 26.9% Comprehensive Income Comp. Income per Share ROE H1/25 12.2NISb 560NISb 181% Shareholders Equity AUM Solvency1 1 Solvency with transitional measures estimated as of March 31, 2
Slide 7: 2025 Q2 & H1 | Key Takeaways
2025 Q2 & H1 | Key Takeaways Strong Business Performance 1 Continued growth in quality earnings, generating core income of 1,318 NISm (692 in Q2) with strong performance across activities Strong investment performance and decreased sensitivity of insurance liabilities to interest rates led to positi
Slide 8: H1 2025 | Continued Growth & Quality in Core Activities
H1 2025 | Continued Growth & Quality in Core Activities Income Comprehensive, after tax, NISm IFRS 4 IFRS 17 2,316 2,369 73 2,087 327 630 H1 Q2 Non-Operating Effects 1,450 1,496 1,353 585 Strong investment 1,093 178 1,124 performance, some offset 891 from interest rates 450 426 Non-Operating Effects
Slide 9: Investments | Core Capabilities
Investments | Core Capabilities Returns – Insurance Nostro / Corporate Account Asset Allocation - Corporate Account (Nostro) Percent (nominal) Percent (June 30, 2025) 10.6% 9.3% Alternatives & other Cash 7.9% 7.4% 12% 7% 5.9% 4.8% 4.5% Real estate 13% ~68% 1.9% 35% Fixed income (Govt) fixed income P
Slide 10: Dividends & Buybacks | Quarterly Payout & Track Record
Dividends & Buybacks | Quarterly Payout & Track Record Dividend: 400 NISm quarterly dividend announced; Dividend & Buyback policy at least 40% from annual income From annual income, NISm Buybacks: Annual plan extended from 100 NISm to Average dividend 1,017 200 NISm; 31 NISm executed during quarter
Slide 11: Quality Earnings Drives Group Cash Remittance
Quality Earnings Drives Group Cash Remittance Group Cash Remittance from Subsidiaries Announced dividends from income, by business, NISm Total cash remittance of 886 NISm from H1, supporting liquidity, resilience, buybacks, and regular quarterly dividend distributions (630 NISm from H1 income) Insur
Slide 12: Value Creation | Global Outreach
Value Creation | Global Outreach Global activities upgrade know-how and best practices, culture, opportunities, and differentiation Shareholders Investments Partners Board 30-40% leading international 40-50% global investments Partnerships with leading Executives with broad funds & institutional inc
Slide 13: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 13
Slide 14: Israeli Financial Services | Value Creation Opportunity
Israeli Financial Services | Value Creation Opportunity Financial assets held by public1 Financial services sector market cap2 Financial services value mix3 NIStr NISb Share of market cap by sector, % Value creation Growth in assets opportunity 3% Transition examples in Payments & 19% Israel: 22% Cr
Slide 15: 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, interest rates, & special 2,400-2,600 2025 H1 run-rate is items) 2,296 400-600 Additional already within 2027 guidance 1,760 potential 1,180 1,322 866 2,000 Targe
Slide 16: 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 17: 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 18: Compounding AUMs | Continued Growth
Compounding AUMs | Continued Growth 2027 Target Assets Under Management 600-650 NISb NISb, end of period 560 525 128 Retirement - Pension 433 117 +20% CAGR 369 371 92 132 Retirement - Provident 53 67 123 113 234 117 111 215 139 Wealth & Investments 37 135 178 31 35 90 24 34 70 66 30 56 23 32 39 Inve
Slide 19: Growth Engines | Continued EBITDA Growth
Asset Management Growth Engines | Continued EBITDA Growth 2027 Target Growth engines include Asset Adjusted EBITDA for Asset Management Management, Brokers & Advisors NISm, consolidated including minorities 1.6-1.8 NISb & Financing Significant FRE (Fee-Related Targets to be updated Earnings) in Q4 2
Slide 20: Wealth, Investments & Retirement
Asset Management Wealth, Investments & Retirement Description: AUM Core Income, net Investment House (Funds & ETFs, NISb NISm, before non-operating effects Brokerage, Portfolios, ESOP, W) +19% CAGR Wealth (private markets) 438 407 Retirement (Pension & Provident) 295 300-400 Investment Policies (rep
Slide 21: Brokers & Advisors | Phoenix Agencies
Asset Management Brokers & Advisors | Phoenix Agencies Description: Revenues Core Income Objective advisor benefit administration, NISm NISm, net of tax & minorities, before retirement planning, & insurance (life, non-operating effects 350-450 health, P&C, specialties) Independent Brokers (Agencies)
Slide 22: Financing | Phoenix Gama
Asset Management Financing | Phoenix Gama Description: Credit card solutions Core Income, net Financing Portfolio NISm, before non-operating effects SME lending NISb, including mergers Construction finance (merged 2024) 150-200 4.0 Consumer Credit (launched 2024) 3.4 El Al Frequent Flyer Program (mi
Slide 23: Insurance | Strong Performance
Insurance Insurance | Strong Performance 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 0.8 2.5 illness, travel
Slide 24: Insurance Financial Optimization | Reducing Volatility
Insurance Insurance Financial Optimization | Reducing Volatility 1 Shift in activity mix Evolution of CSM and other future income in H1 2025 NISm Group strategy focuses on accelerated growth in capital efficient activities (P&C, Investment Policies, Asset Management, selected short-duration 10,181 9
Slide 25: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 25
Slide 26: H1 2025 | Income by Source
H1 2025 | Income by Source Breakdown Before Tax – By Segment H1/25 H1/24 Difference NISm P&C 506 430 76 Health 487 439 48 Life 239 219 20 Core Income Breakdown (Comprehensive) Other Equity Returns 116 86 30 H1 2025, NISm Core Insurance 1,348 1,174 174 2,395 Retirement 73 56 17 373 Wealth & Investmen
Slide 27: Q2 2025 | Income by Source
Q2 2025 | Income by Source Breakdown Before Tax – By Segment NISm Q2-25 Q2-24 Difference P&C 291 240 51 Health 250 225 25 Core Income Breakdown (Comprehensive) Life 133 92 41 Q2 2025, NISm Other Equity Returns 43 22 21 1,539 Core Insurance 717 579 138 Retirement 31 26 5 Wealth & Investments 125 88 3
Slide 28: H1 2025 | Income by Segment
H1 2025 | Income by Segment Segment Income Breakdown (Comprehensive) H1 2025, NISm 2,395 80 52 209 187 (828) 79 (71) 1,496 644 227 390 527 P&C Health Life Other Retirement Wealth & Brokers & Financing Other Income Tax Miniority H1/25 Equity Investments Advisors before Tax Returns & Minority 1,788 60
Slide 29: Q2 2025 | Income by Segment
Q2 2025 | Income by Segment Segment Income Breakdown (Comprehensive) Q2 2025, NISm 1,539 29 31 96 79 40 (578) 928 674 (33) 122 170 298 P&C Health Life Other Retirement Wealth & Brokers & Financing Other Income Tax Miniority Q2/25 Equity Investments Advisors before Tax Returns & Minority 1,264 275 In
Slide 30: Balance Sheet | Strong Liquidity & Low Leverage
Balance Sheet | Strong Liquidity & Low Leverage Balance Sheet (Solo) Financial Assets Group Leverage Highlights 2,364 Entity Rating1 Comments IFRS 17 Phoenix Financial AA 2-5% LTV Phoenix Insurance AAA 181% Solvency (with transitional measures) Phoenix Financial Solo NISm 31/12/2024 30/06/2024 30/06
Slide 31: Capital Management | Solvency
Capital Management | Solvency Solvency ratio (Insurance Company) Solvency II implementation Cashflow and Liquidity (Phoenix Financial Company) Solvency II implemented in Israel in line with international standards, with strong regulatory Insurance subsidiary dividend oversight payout 40-60% of compr
Slide 32: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 32
Slide 33: Insurance P&C
Insurance P&C Continued growth and profitability despite Comprehensive Income Before Tax competitive market NISm 527 Improved claims management 30 (11) 2 Optimized use of machine learning for motor underwriting 506 Core Income (Before Tax) Q2/24 Q2/25 H1/24 H1/25 Compulsory Motor 60 52 92 76 Motor P
Slide 34: Health
Insurance Health Continued improvement in core Comprehensive Income Before Tax income from underwriting profit NISm Focusing growth on high-ROE, capital- efficient products (86) 390 Negative impact of investments & (11) -0 interest rates 487 Core Income Q2/24 Q2/25 H1/24 H1/25 (Before Tax) Critical
Slide 35: Life & Savings
Insurance Life & Savings Comprehensive Income Before Tax Increased core income from underwriting profit NISm Negative non-operating effects mainly due to interest rate effects, partially offset by investment 24 performance 227 Special items include onerous contracts results (112) 76 239 Core Income
Slide 36: Other Equity Returns (Insurance)
Insurance Other Equity Returns (Insurance) Strong contribution from Comprehensive Income Before Tax corporate account investment NISm performance 644 (7) 535 116 Financial Margin Investments Special Items H1/25 H1/24 86 (217) 10 (121) Difference 30 752 (17) 765 Q2/25 43 646 (15) 674 Q2/24 22 (284) -
Slide 37: Wealth & Investments
Asset Management Wealth & Investments Higher income across sub- Comprehensive Income Before Tax Including Phoenix Capital segments NISm Partners (with alternatives) & investment policies Strong growth in Mutual Funds & ETFs 44 (62) Continued growth in brokerage 8 187 platform including new client ac
Slide 38: Retirement (Pension & Provident)
Asset Management Retirement (Pension & Provident) Continued organic growth Comprehensive Income Before Tax NISm Focus on profitability including higher margin / 79 efficient activities driving 73 6 0 higher core income Pension 27 Provident 46 Core Income Investments Special items H1/25 Non-Operating
Slide 39: Brokers & Advisors (Agencies)
Asset Management Brokers & Advisors (Agencies) Strong growth in core income Comprehensive Income Before Tax NISm Continued organic and inorganic 209 growth including small acquisitions (9) 7 leading to higher core income Transaction to increase holdings from 78% to 95% signed in July Updated targets
Slide 40: Financing | Phoenix Gama
Asset Management Financing | Phoenix Gama Comprehensive Income Before Tax Continued growth across segments NISm Significant fee-related revenues and income, including credit card Key Financials (NISm) H1/24 H1/25 Turnover Credit portfolio solutions and some financing activities (18) 80 Net Finance I
Slide 41: Other
Other Segment includes Comprehensive Income Before Tax Phoenix Financial solo NISm profits (including RT1 holding) as well as other 9 items 2 0 Restructured to improve capital & investments efficiency 52 41 Financial Subsidiaries Other Special Items Q2/25 Margin H1/24 14 - - - 14 Difference 27 2 - 9
Slide 42: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 42
Slide 43: Israel Economy | Long-term Fundamentals
Israel Economy | Long-term Fundamentals Population Growth 1 Debt to GDP 3 Stock Market Performance5 Percent Percent 5-years comparison (2020-6/2025) Israel 2.0% Germany 63% TA-125 86% UK 0.6% Israel 69% S&P500 70% USA 0.5% UK 96% Nikkei225 35% Spain 0.0% Spain 103% Euro Stoxx50 30% Germany 0.1%- USA
Slide 44: 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 45: Consolidated Balance Sheet | Strong Financial Position
Consolidated Balance Sheet | Strong Financial Position Bonds and Loans Phoenix Financial Balance Sheet 30/06/2025 31/12/2024 NISm IFRS 17 Floating Fixed Phoenix Financial NISm 31/12/2024 30/06/2024 30/06/2025 H1/24-H1/25 CPI linked interest interest Total Total Financial Solo 1,155 430 953 2,537 1,8
Slide 46: Agenda
Highlights Strategy & Targets Agenda Financial Results Segment Breakdown Appendix Glossary 46
Slide 47: 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 48: 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