Phoenix Financial Ltd · TASE:PHOE
Phoenix Financial — The Phoenix Holdings — Investor Day (December 2020)
29 slides from Phoenix Financial's investor day presentation, Dec 2, 2020
Slide 1: Looking Ahead
Looking Ahead December 2020
Slide 2: Disclaimer
Disclaimer This presentation includes the main points of the Company's strategic plan for the The realization and / or non-realization of the forward-looking information will years 2020-2024 as formulated by it in recent months. Accordingly, the be affected by risk factors that characterize the Comp
Slide 3: 2020-2025 Looking Ahead
2020-2025 | Looking Ahead 2025 1949 1978 2006 2008 - 2010 2018 2019 2020 Acquisition of Launch of Phoenix Acquisition of Date of Initial Public Entry into the Strategic plan Excellence, Shekel, SMART the controlling Incorporation by Offering (IPO) Tel Aviv 100 interest: David Hachmi Oren, Mizrah and
Slide 4: Board of Directors with Broad Israeli and International Experience
Board of Directors with Broad Israeli and International Experience Benny Gabbay Eliezer Yones Zhak Cohen Orit Alster Dr. Rivy Cohen Ben Langworthy Dr. Ehud Shapira Chairman, Holdings & Insurance Holdings & Insurance Holdings & Insurance Insurance Insurance Holdings Holdings Israel Israel US Israel I
Slide 5: Strong Record of Leadership and Profitability
Strong Record of Leadership and Profitability Diverse Profit Sources * Financial Strength Shareholder Equity (NISb) AUM (NISb) 11% 15% Excellence / asset Life & long- 7.1 6.6 management term savings 214 218 4.1 159 13% Insurance 7% Agencies Health 2015 2019 Q3 2020 2015 2019 Q3 2020 Insurance ROE Ma
Slide 6: Leading Investment Management
Leading Investment Management Leadership among 5 large insurance groups • Strong, leading organization Insurance Pension Provident Comprehensive Fund • Proactive, dynamic and Participating Policies (General, since 2004) (aged 50 and under) (aged 50 and under) Training Fund (General) specialized team
Slide 7: Strategic Plan: Value-driven Insurance and Financial Group
Strategic Plan Value-driven Insurance and Financial Group Yield-focused Innovation and Capital growth Maximize Portfolio Efficiency Management
Slide 8: Strategic Plan: Value-driven Insurance and Financial Group
Strategic Plan Value-driven Insurance and Financial Group Yield-focused Innovation and Capital growth Maximize Portfolio Efficiency Management
Slide 9: Accelerated Growth in High-ROE Activities
Accelerated Growth in High-ROE Activities Pension / Provident P&C Premiums (NISb) Growth Drivers Deposits (NISb) 3.8 9.8 6.8 2.8 2.5 4.8 Growth in agencies and Growth in P&C SMART direct insurance 2015 2019 Target 2015 2019 Target channel Excellence / AM Revenues Insurance Agency Growth in asset man
Slide 10: Targeting 40% Growth in AUM
Targeting 40% Growth in AUM Assets Under Management (NISb) Growth Drivers 300 +40% Excellence Asset Management Mutual Funds, ETFs, 214 Brokerage Growth in Growth in Provident and KSM Funds Provident and Pension (Excellence) 159 Pension (compulsory savings) Nostro Potential mergers and Insurance and
Slide 11: Accelerated Growth in "Excellence" Asset Management
Accelerated Growth in “Excellence” Asset Management Forecast 10-15% CAGR Comprehensive profit (NISm) Growth Drivers • Manages 50 NISb Increasing • Activities including mutual funds Growth in AUM, activity in focusing on and ETFs, private & institutional brokerage for mutual funds private clients and
Slide 12: Accelerated Growth in Proprietary Agencies
Accelerated Growth in Proprietary Agencies Forecast 5-8% Growth Drivers Comprehensive Profit (NISm) CAGR Continued • The largest distribution channel Accelerating acquisitions of organic among Israeli insurance insurance growth agencies companies 144 114 • Includes leaders in life and P&C 89 85 dist
Slide 13: Continued Share Expansion in Direct Distribution
Continued Share Expansion in Direct Distribution Phoenix SMART - Market Share of Direct Distribution * Growth Drivers Vehicle Insurance Market 20% – Distribution Channels Digital Optimizing marketing Direct the digital and marketing customer automation 10% 30% journey 2025 70% 2% Indirect Pricing an
Slide 14: Strategic Plan: Value-driven Insurance and Financial Group
Strategic Plan Value-driven Insurance and Financial Group Yield-focused Innovation and Capital growth Maximize Portfolio Efficiency Management
Slide 15: Ongoing Digital and Technological Transformation
Ongoing Digital and Technological Transformation Innovation Distance from core Digital activity Growth engine Infrastructure and data development lab Transformative activity Open platforms for accelerating Investments in technological startups progress Advanced digital tools Launching Implementing A
Slide 16: 300 NISm Annual Savings While Improving Service
300 NISm Annual Savings While Improving Service Implementing digital tools to improve service and cut costs Growth in self-service Market leaders in digital services Reduction in call centers Improving satisfaction 18% increase in internet service First Place in 7 out of 9 35% reduction in call cent
Slide 17: Strategic Plan: Value-driven Insurance and Financial Group
Strategic Plan Value-driven Insurance and Financial Group Yield-focused Innovation and Capital growth Maximize Portfolio Efficiency Management
Slide 18: Portfolio Resilience During 2020 YTD
Portfolio Resilience During 2020 YTD Yield based on the first 9 months of 2020 (annual rate) xx ROE xx Equity NISm Phoenix Holdings 9.7% 7,128 Excellence Phoenix Insurance Agencies Phoenix Insurance*** 13.2% 996 21.1% 562 8.2% 5,467 Gama** Includes Covid-19 impact 18.9% 103 * Data as of 30.9.2020 **
Slide 19: Active Portfolio Management to Unlock & Create Value
Active Portfolio Management to Unlock & Create Value Comprehensive Comprehensive Equity of Phoenix Value drivers Holdings Profit Profit Holdings 2019 30.9.20 YTD 30.9.20 NISm NISm NISm Growth Insurance* 100% 415 309 5,467 Profitability Agencies Organic Growth 100% 114 77 562 Focus on Acquisitions 50
Slide 20: Strategic Plan: Value-driven Insurance and Financial Group
Strategic Plan Value-driven Insurance and Financial Group Yield-focused Innovation and Capital growth Maximize Portfolio Efficiency Management
Slide 21: Reduce Volatility and Build Capital and Solvency Ratios
Reduce Volatility and Build Capital and Solvency Ratios Reduce Sensitivity to interest rate changes (in NISm) * • Improved hedging of interest rate risk 573 • Improved matching of assets and liabilities volatility and +1% (including duration) 147 optimize risk • Optimization of old insurance portfol
Slide 22: Increase ROE and Distribute Dividends
Increase ROE and Distribute Dividends Shareholder Equity (NISm) 12-15%* 8.3% 10.2% 9 16.5% • Dividend distribution 15.5% 6.4 6.6 ROE 22.2% 12.0% 8.1% 5.7 policy – 30% of profits 4.8 3.6 3.8 4.1 • Annual dividend forecasted in 2020*** • Share repurchase plan 2013 2014 2015 2016 2017 2018 2019 Target
Slide 23: Selected Targets
Selected Targets Comprehensive Profit AUM (NISb) Equity (NISb) ROE (NISm) 300 9 1,000 12-15% 7.1 13.3% 218 6.6 9.7% 214 4.1 710 159 494 2015 2019 2020 Target 2015 2019 2020 Target AVG. 2020 Target AVG. 2020 Target Q3 Q3 5YRS Q3YTD 5YRS Q3YTD Targets based on 5-year plan and assuming 3% return on inv
Slide 24: For further information please contact us at ir@fnx.co.il
For further information please contact us at ir@fnx.co.il and see https://investor-relations.fnx.co.il/ 24
Slide 25: Appendix
Appendix 25
Slide 26: Strong and Experienced Management Team
Strong and Experienced Management Team Eyal Ben Simon Moti Mor Daniel Cohen Daphna Shapira Raanan Saad Hanna Hollander CEO P&C Long-term Savings & Life Health SMART Direct Excellence • Phoenix since 2003 • Phoenix since 2003 • Phoenix since 2018 • Phoenix since 1996 • Phoenix since 2019 • Phoenix si
Slide 27: Israel Opportunity
Israel Opportunity The Israeli economy has a unique profile, combining the emerging market growth with developed market stability. These characteristics support the development of strong domestic insurance and asset management sectors. A1 (Stable) / AA- (Stable) 3.3% 0.1% 5.1% / A+ (Stable) 59.9% Av
Slide 28: Phoenix's Strengths
Phoenix’s Strengths Strong Growth Unlike European peers, Phoenix is a leader in a rapidly growing market: ~2x GDP growth relative to Western Europe with strong demographic and wealth trends. Compulsory, high savings rates contribute to the growth in asset management and long-term savings products. H
Slide 29: Annex A
Annex A Legal remarks and details regarding the investment tracks which were the basis for the comparison in Slide 6. The presented published periods: last 12 months: (11/19-10/20), last 3 years (11/17-10/20), last 5 years (11/15-10/20), standard deviation in yearly terms – last 5 years: (11/15-10/2