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

Harel Insurance Investments & Financial Services — Q1 2016 Earnings Presentation

13 slides from Harel Insurance Investments & Financial Services's earnings presentation, May 2016

1. Slide 1: Summary of financial results for the period 1-3/2016

   Summary of financial results for the period 1-3/2016 Harel Insurance Investments & Financial Services Ltd. May 2016

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 after tax 686 533 381 155 14 2013 2014 2015 Q1 2015 Q1 2016 Return on Equity 16% 11% 12% 8% 1% 2013 2014 2015 Q1 2015 Q1 2016 Harel Insurance Investments & Financial Services Ltd 3

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

   Earned premiums and benefit contributions, gross (NIS million) 2013 % Increase 2014 2015 % Increase 1-3/2015 1-3/2016 Life a s s ura nce 3,810 12% 3,797 4,243 (16%) * 1,207 1,018 Hea l th i ns ura nce 3,192 11% 3,571 3,964 4% 955 996 Non‐l ife i ns ura nce 3,103 (4%) 3,198 3,066 (6%) 761 715 Ins ura

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

   Assets under management (AUM) and nostro assets (NIS billion) 200 Portfolio management 179.3 178.4 176.3 * 180 8.9 8.7 8.7 ETNs 161 15.3 14.1 160 13.2 8.5 12.1 Mutual funds 24.7 22.1 140 33.7 119.1 32.9 Provident funds 120 2.9 29.6 29.8 6.0 101.5 100.3 29.0 Pension funds 100 2.3 3.6 19.5 83.2 3.1 3.

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

   Comprehensive income before tax from operating segments (NIS million) 2013 2014 2015 Q1 2015 Q1 2016 Long‐term savings 432 164 298 (27) (37) Health 202 140 2 (19) 27 Non‐life insurance 219 287 124 131 * (51) Insurance companies overseas (12) 5 (7) 1 1 Finance 27 64 8 23 18 Other capital 221 160 150

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

   Non-life insurance segment – comprehensive income before tax (NIS million) 2013 2014 2015 Q1 2015 Q1 2016 Compulsory motor 112 129 88 65 (32) Motor property 24 34 (12) 12 2 Property and other branches 25 47 59 12 9 Liabilities and other branches 4 13 (65) 10 (49) Mortgage insurance 54 64 53 32 19 To

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) 2013 2014 2015 Q1 2015 Q1 2016 Life assurance 346 40 185 (59) (43) Pension 57 69 69 19 9 Provident 29 55 44 13 (3) Total 432 164 298 (27) (37) 500 432 29 400 57 298 300 44 200 164 69 346 55 100 185 69 (27) (

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

   Financial services segment (NIS million) 2013 2014 2015 Q1 2015 Q1 2016 Revenus 254 304 300 81 64 Comprehensive income before taxes 27 64 * 8 23 18 EBIDTA 50 83 91 27 20 304 300 254 83 91 81 50 64 64 27 23 27 18 20 8 2013 2014 2015 Q1 2015 Q1 2016 Revenus Comprehensive income before taxes EBIDTA * I

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

    Equity – Harel Investments (NIS million) 4,912 4,820 4,724 4,512 2013 2014 2015 Q1 2016 Dividend (NIS million) 308 320 235 ‐ Dividend yield (%) 7.6% 7.5% 6.3% ‐ Harel Insurance Investments & Financial Services Ltd 10

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

    Capital surpluses – Harel Insurance (NIS million) Surplus capital Required capital 8,000 7,000 6,326 * 6,768 6,571 6,000 1,230 1,050 1,085 5,000 4,000 3,000 5,241 5,538 5,521 2,000 1,000 0 2014 2015 Q1 2016 * As a result of the merger of Dikla’s insurance activity, the capital surplus of Harel Insur

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

    EV (NIS million) 2013 % Increase 2014 2015 EV 11,122 8% 12,269 13,287 VIF 8,216 11% 9,212 10,213 VNB 1,219 (3%) 1,304 1,263 * Including life assurance, health insurance and pension funds. Harel Insurance Investments & Financial Services Ltd 12

13. Slide 13: Harel Insurance & Finance

    OHAREL Insurance & Finance

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