Menora Mivtachim Holdings Ltd. · TASE:MMHD
Menora Mivtachim — Q1 2024 Earnings Presentation
37 slides from Menora Mivtachim's earnings presentation, May 2024
Slide 1: Analyst Presentation
QQ) MENORA MIVTACHIM Analyst | Presentation Menora Mivtachim | may 202
Slide 2: General clarifications
General clarifications This presentation includes only partial information regarding the Group's results for the period ended March 31, 2024 and was prepared solely for the sake of brevity and convenience. The presentation does not include the full information needed by an investor to make a decisio
Slide 3: Operating results highlights, changes in income by segment, Group's strengths
01 Operating results highlights 02 Details of changes in income —— bysegment 03 The Group’s Strengths
Slide 4: Glossary of Terms
Glossary of Terms Underwriting income / operating income The operating results, which include stating a real normative return of 3% (annualized) in respect of the liability component that is not backed by Hetz bonds, including for the purpose of calculating variable management fees Investment income
Slide 5: Key data
) Key data 153 NIS million 1-3/2023 231 NIS million 1-3/2024 126 10.4% 14.3% 1-3/2023 1-3/2024 313 NIS million NIS million 1-3/2023 1-3/2024 g':
Slide 6: Key data
| Key data 7.3 8.1 NIS billion NIS billion 1-3/2023 1-3/2024 157.4% 2.6 Net of the Transitional NIS billion Provisions 11.7% 332 CAGR NIS billion (2018-3.2024) March 31, 2024 175 NIS million Dividend distributed for 2023 11.0% 6.5 CAGR NIS billion (2018-3.2024) March 31, 2024 Company’s rating - Aa2
Slide 7: Operating results highlights
| Operating results highlights Growth in profitability | NIS million Comprehensive income, after tax attributable to the shareholders +77 231 153 1-3/2023 1-3/2024 Comprehensive income before tax Comprehensive income, before tax - Comprehensive income, before tax - pension P&C segment Underwriting i
Slide 8: Not attributed to operating segments
Not attributed to operating segments
Slide 9: Underwriting income
| Underwriting income Substantial improvement in underwriting income and profitability across all areas of activity | NIS million te 1-3/2024 313 1-3/2023 126 1 P&C Health Pension Life [Ml Provident Increase of approx. NIS 187 million compared to corresponding quarter last year 13/2023 {/)) 1-3/2024
Slide 10: 1-3/2024 (39) (12) 1-3/2023 (8)
1-3/2024 142 151 19 89 (39) (12) 8 1-3/2023 40 77 9 44 55 0 (8)
Slide 11: Note on contributions towards benefits
*) Do not include the contributions towards benefits deposited with pension funds and provident funds (excluding guaranteed return provident funds tracks) as well as proceeds in respect of investment contracts which are recognized directly in insurance liabilities, and not recognized as premiums in
Slide 12: Assets under management
__ Assets under management Development of assets under management by areas of activity in the period 2018-3.2024 | NIS billion 332.0 315.0 = 219.9 221.2 234.5 185.2 190.6 139.2 155.0 115.0 27.9 32.3 33.5 35.8 32.1 33.3 34.4 15.3 16.8 7.2 18.0 204 20.9 [21.0 | December31, 2018 December 31, 2019 Decem
Slide 13: Operating results highlights, changes in income by segment
01 Operating results highlights 02 Details of changes in income —— bysegment 03 The Group’s Strengths
Slide 14: P&C insurance
| P&C insurance NIS million Composition of underwriting income by segment Gime) 1-3/2023 |) 1-3/2024 142 83 63 28 40 12 10 17 15 (44) Other property Other liability Motor property Compulsory motor Total subsegments subsegments Composition of gross premiums by segment - srotorpropety Compulsory motor
Slide 15: P&C insurance
| P&C insurance Development of income | NIS million 517 407 ass ase 232 142 Underwriting > 40 |] income before tax / 2019 2020 2021 2022 2023 1-3/2023 1-3/2024 571 474 487 Comprehensive > oy income before tax 236 174 “ L 2019 2020 2021 2022 2023 1-3/2023 1-3/2024 g'*
Slide 16: Long-term savings
| Long-term savings Nismillion Underwriting income before tax for the 1-3/2024 quarter compared to the corresponding quarter last year 1-3/2023 [ll 1-3/2024 151 80 7 3) 45 26 7 12 |__| Life insurance Pension Provident Total Composition of premiums and contributions towards benefits by segment 848 57
Slide 17: Health
| Health nis million Collective long-term care - transition from a risk- bearing model to an operational model > As from January 2024 Menora has been operating the long-term care insurance of the Maccabi health maintenance organization, without bearing the insurance risk and in consideration for man
Slide 18: The Group's Strengths
01 Operating results highlights 02 Details of changes in income —— bysegment 03 The Group’s Strengths
Slide 19: The Group's Strengths
| The Group’s" Strengths > @) (Le High, stable profitability over time Leaders in pension The Largest and Most Profitable Pension Company Leaders in P&C insurance Excess profitability relative to industry over time Low exposure to individual long- term care and executive insurance
Slide 20: The Group's Strengths
The Group’s" Strengths Excess capital, solvency and dividend Diversified income mix and structure Extensive activity in insurance-related areas, which have low sensitivity to the capital market, such as pension, credit (ERN and Ampa) and insurance agencies Stable ownership and management structure o
Slide 21: High, stable profitability over time
NS) MENORA on QY MENORA i‘ o ae The Group’s Strengths | High, stable profitability over time
Slide 22: Profitability and shareholders' equity
Pill Profitability and shareholders’ equity Development of comprehensive income after tax attributable to the shareholders and equity NIS million Consistent profitability over time Shareholders' equity - average post-tax comprehensive income ° annual growth of approx. 11% 950 709 654 4,182 509 3,746
Slide 23: High, stable return on equity over time
gi High, stable return on equity over time Average return on equity Return on equity in 2019-2023 2019-3.2024 24.0% 13.6% 19.7% 10.8% 15.6% ae 14.3% 46 2. 12.9 ° 12.0% 9.6% 7.5% 7.1% ll 2019 2020 2021 2022 2023 1-3/2024 Average for the 4 other largest companies { Menora Average for the 4 other large
Slide 24: High, stable return on equity over time
gi High, stable return on equity over time Return on equity 2019-3.2024 30% 5 19.7% 20% 14.3% 2 13.6% Multi-year average - Menora 5% 4 -10% | 2019 2020 2021 2022 2023 1-3/2024 Standard deviation - 2019-2023 (|| Menora—4.5% J_ Company A- 8.2% Company B- 8.0% Company C - 10.9% Company D - 9.8% * Compa
Slide 25: Excess capital, solvency and dividend
NY) MENORA be RY MNP a’ w SER The Group’s Strengths Excess capital, solvency and dividend
Slide 26: Solvency ratio compared with other companies
180% 154.5% 157.4% 160% 144.5% 138.6% 134.7% 140% 120.2% 120.5% 120% 100% 80% 60% 40% 20% 0% 2018 2019 2020 2021 2022 30.6.2023 June 30, 2023 31.12.2023 December 30, 2023 מנורה Menora דCompany חברהD גCompany חברהC בCompany חברהB אCompany חברהA
Slide 27: Leaders in Pension
ll NY) MENORA be mivacim ff ia Me LLL ' \ ‘ 4 i 3 Bi sella ; id J The Group's Strengths - Leaders in Pension fee x7 The Largest and Most Profitable Pension Company
Slide 28: Company A Company D Company C
Company A Company D Company C Company B Menora
Slide 29: Acquisition of Menora Mivtachim Pension and Provident Funds
3) Acquisition of Menora Mivtachim Pension and Provident Funds / _ (October2004) \ Acquisition of Menora Total income since Dividends distributed from Mivtachim Pension and iciti sige t dat. Provident Funds in >) acquisition date >) the acquisition date consideration for nis 183 billion NIS 1.59 bil
Slide 30: Leaders in P&C Insurance
NY) MENORA be RY MNP a’ w SER The Group’s Strengths - | Leaders in P&C Insurance Excess profitability relative to industry over time
Slide 31: Leaders in motor insurance (compulsory and property)
coy Leaders in motor insurance (compulsory and property) Stable profitability over time and positioning as a market leader | NIS million Profitability of compulsory motor and motor property over time Market share of compulsory motor and property Sa subsegments - gross premiums ‘or 2023 288 328 235 2
Slide 32: Menora Competitors Total of
204 162 191 35 (140) 154 606 Menora 352 427 285 (187) (821) (54) 2 Competitors 555 589 476 (151) (961) 100 608 Total of Menora Company A Company B Company C Company D
Slide 33: Motor insurance (property and compulsory)
coy Motor insurance (property and compulsory) NIS million The aggregate income (loss)* in the motor property Gross premiums rate of motor property and compulsory motor subsegments and compulsory motor insurance out of NIS billion 2018-2023 total P&C premiums of each company in 2023 2.0 4 15 4 62.0%
Slide 34: Acquisition of Shomera
‘© Acquisition of Shomera In 2007, Menora acquired Shomera for NIS 158 million ») Carrying amount - approx. NIS. 698 million As at December 31, 2023 Total income after tax Total income since Total dividends distributed attributable to the shareholders* acquisition date e@ from acquisition date NiS 5
Slide 35: Low exposure to individual long-term care and executive insurance
NY) MENORA be RY MNP a’ w SER The Group’s Strengths Low exposure to individual long- | term care sand executive insurance |
Slide 36: Life insurance and health insurance
‘© Life insurance and health insurance Low exposure to long-term care and executive insurance - Products with significant insurance risk and onerous capital requirements Low exposure to individual long-term care Premiums in 2023 | in NIS million Menora Company D pny 278 [14.2%] Company A 482 [24.6%]
Slide 37: Thank you
g'* Thank you
Menora Mivtachim Holdings — Q1 2024 Earnings Presentation on 6ix