Introduction
The Migdal Group Overview Established in 1934, Migdal is the leading insurance and finance group in Israel Israel s largest insurance company Received Aaa perfect rating by Midrog (Moody s Israel) Market leader in Life Insurance, with a prominent positioning in the pension funds sector and in funds management Operates also in the Non-Life market, offering a complete range of insurance solutions both to retail and to corporate clients Total Assets Under Management as of September 2012: ILS 154B (~$41.2B) 1,500,000 private and business customers Traded on the Tel Aviv Stock Exchange (TASE: MGDL) Market Cap : ~ILS 6B (~$1.6B) 2
The Migdal Group Organizational Structure Migdal Underwriting and Business Initiatives The investment banking arm of the Migdal Group, Israel s largest non-bank financial institution Migdal Group 100% Migdal Capital Markets Alternative Investments Mutual Funds Migdal Underwriting and Business Initiatives Global Fixed Income and Structured Products Provident and Educational Funds Portfolio Management 3
Migdal Capital Markets Overview Migdal Capital Markets Investment House has been active in the Israeli capital markets since 1965, and it is one of the largest and oldest investment houses in the Israeli economy. It is wholly owned by the Migdal Group, the largest non-bank financial institution in Israel. Migdal Capital Markets brings into play the advantages inherent in the integration between an insurance company and a leading investment house. These advantages allow investors to benefit from the financial strength of the parent company and from a professional and experienced team of investment managers. Migdal Capital Markets presently manages ~ILS 35B, and provides a wide range of asset and investment management services. 4
Migdal Capital Markets Products and Activities Mutual Funds Mutual Funds: The fourth largest mutual fund company in Israel, managing approximately ILS 19B, mainly in fixed income, but also in many other tradable assets. All funds receive high rating in their individual categories Investment Portfolio Management Assets Management: A large Portfolio Management company in Israel, managing approximately ILS 6B for retail and institutional clients Provident Funds Management Migdal Capital Markets: Manages approximately ILS 11B in Educational and Provident Funds. Stock Exchange services Stock Exchange Services: Is the first non-bank broker/dealer and one of the pioneer members on the Israeli Stock Exchange. The company is a service provider for both retail and institutional clients in the global markets Global Fixed Income & Structured Products Global Fixed Income and Structured Products: Department operating as part of the investment house and considered to be the largest in Israel in the fixed income and structured products area for institutional clients 5
Migdal Underwriting and Business Initiatives Ltd. The Investment Banking Arm of the Migdal Group
Migdal Underwriting & Business Initiatives Ltd. Overview The investment banking arm of the Migdal Group A leading team of extremely capable professional investment bankers Tailor-made solutions, designed to fit our clients profile in both the public and private sectors A widespread network which includes an excellent connection to the Israeli capital markets and its diverse market sectors International reach, cooperation with leading investors (PE houses, VC funds, Hedge funds, family offices), financial institutions, investment banks and industry leaders globally Economies of scale; our clients can enjoy a variety of services from the Migdal Group, including brokerage, research and asset management 7
Services Investment Banking & Underwriting Raising Senior Debt Raising Equity for Private Companies Private Placements Raising Mezzanine Debt Raising Capital for Investment Funds Initial Public Offerings (IPO) Public Offerings Secondaries Issuing rated Bonds, Secured and Unsecured Advisory Services Mergers and Acquisitions Strategic and Financial Consultancy Services Locating Target Companies for Acquisitions 8
Main Vertical Practice Areas Energy & Infrastructure Oil & Gas Hi-Tech Industrials 9
The Leading Team Itzik Betzalel, CEO Mr. Betzalel is long time veteran of the Israeli capital market with more than 20 years of experience. Previously Mr. Betzalel served as the Deputy CEO for Clal Finance Underwriting Ltd., the Vice President for Business Development at Clal Finance Ltd., the CEO of ByTech Telecommunication Ltd. and the Chief Economist for Clal Israel Ltd. Mr. Betzalel holds a B.A and an M.A. in Economics and Business Administration from The Hebrew University, Jerusalem. Omer Granit, Executive Vice President Mr. Granit heads the M&A practice and brings extensive global multidisciplinary experience. Previously, Mr. Granit served as an Associate Attorney at the NY office of White & Case LLP s M&A group, and at the NY office of Butzel Long PC s Corporate, M&A and Israel practice groups. Mr. Granit holds a Master of Laws (LL.M.) from the New York University School of Law (Valedictorian), and a Joint Degree, LL.B. in Law and B.A. in Business Administration from the Interdisciplinary Center, Herzliya. Mr. Granit is admitted to the NY and Israel Bar. Roee Eizenman, CEO Migdal Issuers Ltd. Mr. Eizenman serves as CEO of Migdal Issuers Ltd., a subsidiary of Migdal Underwriting and Business Initiatives Ltd., which handles all the public activity related to the Tel Aviv Stock Exchange and financial institutions. Previously, Mr. Eizenman served as the Senior Vice President for Clal Finance Underwriting Ltd. Mr. Eizenman holds an Executive MBA in Financial Engineering and Banking from the Hebrew University, Jerusalem (Magna Cum Laude), and a B.A. in Business Administration and Risk Management from the Interdisciplinary Center, Herzliya (Summa cum laude). 10
The Leading Team Ofir Doron, Head of Energy and Utilities Practice Mr. Doron heads the investment banking activities across different energy segments including renewable energy, power generation and IPPs, Oil & Gas, and Clean-tech. Previously, Mr. Doron served as an Executive Director at Ernst & Young Israel, heading the Business Planning Practice. Mr. Doron holds a Master of Laws (LL.M.) from KU Leuven, Belgium, and an LL.B. from Tel Aviv University. Hagai Yedid, Head of Hi Tech Practice Mr. Yedid brings over twenty years of economic, financial, and investment banking experience raising capital for Israeli high-tech companies both domestically and internationally. Previously Mr. Yedid served as a Managing Director at YLR Capital Markets/Orama (IDB Group's former Investment Banking arm) and afterwards as the Founder of Yedid Capital. Mr. Yedid holds an MBA in Finance and Banking from Hebrew University in Jerusalem and his B.A. in Finance from Baruch College in New York. Dor Bocian, Research and Analysis Mr. Bocian is responsible for the research and analysis activities in the company. Mr. Bocian holds an MBA in Finance and Entrepreneurship from the Interdisciplinary Center, Herzliya and a B.A. in Economics from the University of Pennsylvania and the London School of Economics (Cum Laude). 11
Selected Transactions $ 190,000,000 Preferred Equity Private Placement September 2010 $ 28,000,000 May 2010 Undisclosed Sell-Side Renewable Energy September 2011 Undisclosed Sell-Side Renewable Energy May 2011 Undisclosed Buy-Side Renewable Energy May 2011 Undisclosed Sell-Side Renewable Energy May 2011 $ 38,000,000 Interest Rights September 2011 $ 32,000,000 Private Debt Issuance October 2011 $ 10,000,000 Public Equity Offering November 2012 $ 63,000,000 December 2011 $ 534,000,000 November 2011 $ 40,000,000 Private Debt Issuance January 2012 $ 400,000,000 February 2012 $ 244,000,000 January 2012 $ 135,000,000 January 2012 $ 67,000,000 Public Offering of Stocks and Options February 2012 12
Selected Transactions $ 67,000,000 April 2012 $ 265,000,000 March 2012 $ 10,000,000 Equity Private Placement March 2012 $ 112,000,000 May 2012 $ 280,000,000 April 2012 $ 68,000,000 June 2012 $ 30,000,000 July 2012 $ 100,000,000 August 2012 $ 35,000,000 Sell-Side Renewable Energy October 2012 $ 100,000,000 December 2012 $ 87,000,000 Private Debt Issuance December 2012 $ 15,000,000 Public Equity Offering December 2012 $ 5,500,000 Sell-Side Renewable Energy January 2013 $ 47,500,000 January 2013 13