The Tel-Aviv Stock Exchange Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Tel Aviv Stock Exchange fourth quarter and full year 2025 results conference call. All participants are at present in a listen-only mode. Following management's presentation, instruction will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded March 5th, 2026. The recording will be publicly available on TAFE's website. With us online today are Mr. Itay Ben-Zaev, CEO, and Mr. Yehuda Ben-Ezra, CFO. Before I turn the call over to Mr. Itay Ben-Zaev, I would like to remind everyone that this conference is not a substitute for reviewing the company's annual financial statements. quarterly financial statement, and interim report for the fourth quarter and full year of 2025, in which full and precise information is presented and may contain inter alia forward-looking statements in accordance to section 32A, the securities law, 1968. In addition to IFRS reporting, we might mention certain financial measures that do not conform to generally accepted accounting principles. Such non-GAAP measures are not intended in any manner to serve as substitute for our financial results. However, we believe that they provide additional insight for better understanding of our business performance. Reconciliations between these non-GAAP measures and most comparable related GAAP measures are included in tables that can be found in our earnings press release and in the slide presentation accompanying this call. Both can be accessed on the English Maya site and in the investor relations portion of our website at ir.taste.co.il. Mr. Benzev, would you like to begin?

Good evening Israel Time everyone and thank you for joining us today. I'm happy to host you in our earnings call. The financial statements for 2025 show that Taste ended the year on a high note. Q4 2025 kept another record year for TAFE with revenues reaching an all time high of 149.3 million shekels for Q4 and 563.5 million shekels for the full year 2025. These results represent a record increase of 29% year over year and quarter over quarter. We also saw a record increase of 58% in adjusted EBITDA and an increase of 9.5% in the adjusted EBITDA margin, as well as an all-time high in taste net profit with a 79% increase compared to 2024. All this was achieved while continuing to maintain organic growth across all TASES core activities, despite Israel having fought a multi-front war for most of 2025. Yuda Beneva, our CFO, will discuss the financial statements in detail later in this call. For most of 2025, trading on TASES took place against the backdrop of the ongoing war and elevated volatility. Against this background, the Israeli capital market has exhibited resilience and economic strength during 2024 and 2025. The leading equity indices on TAFE broke their historic record on numerous occasions, outperforming the leading global indices. The TA90 index and the TA35 topped the global return table with gains of 46.6% and 51.6% respectively, compared to 17.9% on the S&P 500 index and 21% on the NASDAQ 100 index. In addition, The positive and exceptional trend was also evident in the sectoral indices, particularly in the financial sector. At the end of 2025, TAFE equity market cap reached 2 trillion shekels, a 46% increase from year-end 2024 due to the impact of the rise in TAFE equity indices. Trading volumes also set new records with the cash equities ADV rising to 3.4 billion shekels in 2025, 57% increase over 2024. The IPO market stagged an impressive resurgence in 2025 with 21 IPOs and an additional five companies listing their shares without raising capital, including one dual listed company. Overall, the total capital raised on the equities market soared to 21 billion shekels compared to 8 billion shekels in 2024. In 2025, the TAIS bond market displayed increased trends as a major source for debt funding both for corporate issuers and for the Israeli government. Corporate board issuances total 187 billion shekels in 2025, compared to 124 billion shekels in the previous year. The Ministry of Finance raised 137 billion shekels in Israel during 2025. The strong demand and successful issuances in Israel and abroad is a powerful sign of confidence in the Israeli economy. Trading volumes in the corporate bond market rose by 9% in 2025 compared to the volume in 2024, while the government bonds ADV amounted to 3.3 billion shekels, similar to 2024. we have continued implementing our strategic plan to strengthen business activity. As part of a significant milestone in strengthening TACE international profile and attracting foreign investors, I'm pleased to update that we have completed the transition to a Monday through Friday trading week at the beginning of 2026. In the last two months, this move has already led to a substantial influx of foreign investors during Friday trading, exceeding the average recorded on Sundays in 2025. In addition, on February 23, the cyber giant Palo Alto Networks began trading on TAIS, officially making it a dual listed company on both the US and Israeli market, which constitutes a profound vote of confidence in this very capital market. And we believe this will lead to further breakthrough for the local capital market while strengthening Tate's position on the international financial stage. Foreign investors, too, expressed confidence in the local capital market and purchased equities totaling 4.4 billion shekels in 2025, mainly in the financial and defense sector. This is in marked contrast to the previous year when foreign investors activity resulted in net sales. It is worth noting that in the first nine months of 2025, the value of foreign investors holdings in non dual listed equities grew by 70% and in September 2025, the value of their holdings reached an historic high of 64 billion shekels, reflecting their deepening presence in the Israeli market. The Israeli retail segment continued to show significant increased interest in the domestic market, and the growth in the opening of new trading accounts continued throughout 2025. the retail investors opened approximately 200,000 new trading accounts, 25% more than in 2024. In the trading segment, we continue to invest and develop the indices market in 2025. In total, we launched 10 new equity and bond indices during 2025, of which seven indices are exclusive, and we intend to continue developing new indices to increase and diversify the products as part of our strategic plan to refine and develop more investment products for the investors. At the end of December 2025, the total AUM of all TAFE indices amounted to 148 billion shekels, compared to 99 billion shekels at the end of 2024. The total AUM of state equity indices amounted to 91 billion shekels compared to 48 billion shekels at the end of 2024. In the derivatives market, we have seen average daily trading volume grow by 14% compared to 2024. In light of the success of the equities market making reform that I have mentioned in my previous calls, seven large companies included in the TA35 Index joined the tailor-made market making program, resulting in the trading volumes of both companies increasing significantly. I would now like to provide you with an update to what I reported to you in our previous earnings call regarding the examination of a partial or full sale over index activity. We are currently negotiating to enter into a deal to sell the activity and to cooperate strategically with a major international entity. At this stage, there is no certainty as to when, if at all, the negotiation will bear fruit and result in a binding agreement. I would also like to update you regarding the dividend payment to the company's shareholders. You will no doubt recall that we previously adopted a dividend distribution policy for the years 2024 to 2026, percent to which states is to distribute a cash dividend to its shareholders at a rate of 50% of the annual net profit for 2025. Excuse me. The dividend according to the policy amounts to 90.5 million shekels. In addition to this, in light of the substantial growth in taste profitability in 2025 and the consequent significant increase in the company's liquid reserve, Taste will distribute a special dividend of 54.3 million shekels. In all, TAIS will distribute a total dividend of 144.8 million shekels, representing 1.56 shekels per ordinary share that will be paid on March 20, 2026. Furthermore, during the coming year, TAIS management will examine drawing up a buyback plan with this being subject to market conditions and other relevant considerations. In conclusion, the 2025 financial statements show that despite all the challenges of the last few years, we are witnessing the growth and resilience of states and of the Israeli economy. Our financial statements continue to reflect our investment in developing new and diverse products for the benefit of the public and the investments made for the benefit of technological and innovative developments so that we can continue to achieve the goals we have set for ourselves in accordance with our strategic plan for the coming years. And now, I'd like to hand over to Mr. Yula Menezra, who will continue with the review of the year results.

Thank you, Itay. As Itay mentioned earlier, TESA's outstanding fourth quarter financial results kept off a highly successful 2025 with the company delivering record revenues across all lines of businesses. Throughout the year, including the fourth quarter, TESA demonstrated remarkable resilience even as Israel faced an extended multi-form conflict. These results highlight the strength of Israel's economy and the stability of its capital markets, showcasing state-consistent performance under challenging conditions. I will continue with slide number seven, which shows some of the key highlights from our results for the year 2025. Our revenues in 2025 reached a new high of 563.5 million shekels, increasing by a record 29% compared to the previous year. Adjusted EBITDA in 2025 improved significantly by 58% to a record of 293.8 million shekels, while the adjusted EBITDA margin also improved from 42.6% to 52.1%. Our net profit substantial growth of 79% and increased to a new record of 181 million shekels. Our basic EPS in 2025 reached a new high of 1.97 shekels, increasing by a record 81% compared to the previous year. I will continue with slide 13, which shows some of the key highlights from our results for the fourth quarter. amounted to 149.3 million shekels, compared to 115.4 million shekels in the same quarter last year. A 29% increase. This is the highest quarterly revenue since the FIPO, and it goes for the evidence across all operations. Our revenues from non-production services amounted to 63% of total revenues, the same as the corresponding quarter last year. Expenses, totals, 84.5 million shekels, compared to 84.2 million shekels in the same quarter last year, a 0.4% increase. Adjusted debits are totaled 80.8 million shekels, compared to 46.8 million shekels in the same quarter last year, a 73% increase. The increase was due to higher revenues. Net profit amounted to 51.6 million shekels, compared to 25.4 million shekels in the same quarter last year, a 104% increase. The increase was due mainly to higher revenues for services. This increase was partially offset by the increase in tax expenses. I will continue with slide 15, where we can take a deeper look into our revenues in the fourth quarter. Revenues from trading and clearing commission increased by 27%, compared to the same quarter last year, and totaled 54.7 million shekels. The increase is due mainly to higher trading volumes, particularly in shares, and in the volume of creation and adoption of mutual fund units. Revenues from listing fees in annual levels increased by 14%, compared to the same quarter last year, and totaled 25.4 million shekels. The increase is due mainly to revenues from annual levies as a result of the increase in the numbers of companies and funds that pay an annual levy. In addition, revenues from listing fees and examination fees were also higher due to the increase in the volume of fund raised. Revenue from clearinghouse services increased by 58% compared to the same quarter last year and totaled 41.2 million shekels. The increase is mainly due to the completion of regulation measures Relating to the authenticity transaction, other factors contributing to the increase were the higher custodian fees as a result of the increase in the value of assets under custody and the updating of the custody fees privately. Revenues from data distribution and connectivity services increased by 19% compared to the same quarter last year and totaled 27.4 million shekels. The increase is due to an increase in revenues from index licensing fees, mainly the result of the increase in the value and use of test indices, and from higher data distribution revenues from businesses and private customers in Israel and abroad. I will continue with slide 18, which shows some of our fourth quarter expenses. Compensation expenses decreased by 4% compared to the same quarter last year, and totaled 43.3 million shekels. The decrease was due to a decrease in variable compensation. Computer and communication expenses increased by 11%, a total of 11.7 million shekels. The increase results mainly from an increase in the maintenance cost of new computer systems and licenses, and from an increase in manpower and projects. Marketing expenses decreased by 40% compared to the same quarter last year and totaled 1.7 million shekels. The decrease is mainly from a decrease in campaigns. Depreciation and monetization expenses increased by 6% compared to the same quarter last year and totaled 15.2 million shekels. The increase in depreciation expenses was new mainly to the upgrading of infrastructure and the launch of new products. Net financing income total 2.5 million shekels, compared to net financing income of 2.6 million shekels in the same quarter last year, a 1% decrease. Let's now go to slide 19, where we can review our financial position. At the end of year 2020, our adjusted equity include deferred income from listing fees and excluding open derivative position balances represents 77% of the adjusted balance sheet. We earned 494 million shekels in cash and investment financial assets. The balance of the bank loan totals 21 million shekels. The surplus equity of regulatory requirements at TRN 2025 totals 550 million shekels compared to 627 million shekels at TRM 2024. The decrease was mainly due to the decrease in the test equity resulting from the buyback of test shelves and the distribution of dividend in 2025. This decrease was partially offset by the net profit in 2025. The surplus liquidity of the regulatory requirement at TRM 2025 totals 310 million shekels compared to 172 million shekels At the end, 2024. The increase in surplus liquidity is mainly due to the increase in the EBITDA. I will continue with slide 20, where we can review our first quarter cash flow highlights. Cash flow from financing activities resulted in negative cash flows of 13.1 billion shekels, compared to negative cash flow of 4.9 million shekels in the third quarter last year. The higher negative cash flow are due mainly to proceeds of 10 million shekels from the sale of arrangement shares in the same quarter last year. Cash flows for investing activities resulted in negative cash flows of 38.5 million shekels compared to negative cash flow of 20 million shekels in the same quarter last year. The increase in negative cash flow is due mainly to the acquisition of financial assets net. Test-free cash flow. amounted to 75.4 million shekels, compared to 35.9 million shekels in the same quarter, the increase in the EBITDA. Also, the Board of Directors today approved the payment of a dividend of 144.8 million shekels, representing 1.56 shekels per ordinary shares, to be distributed on March 2026. In conclusion, Ted's performance in the last quarter and throughout 2025 demonstrates its solid foundation as well as the fundamental resilience and growth potential of the Israeli economy. And with that, I will return the call to our moderator to conduct the Q&A.

Thank you. Ladies and gentlemen, at this time we will begin the question and answer session. If you have a question, please press star 1. If you wish to cancel your request, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers. Your questions will be polled in the order they are received. Please stand by while we poll for your question. The first question is for Peter Harzo from Jefferies.

Please go ahead. Thank you. Good evening. This is Ekto Redasso on for Dan Fannin at Jefferies. On expenses, as you think about the budget for 2026, how does that compare to 2025, and what are the areas of spend that are different going into this year?

Hi, Ekto. I think looking at this year, In terms of our marketing budget, it will not exceed what we had in the last couple of years. In terms of the compensation of the employees, it should be similar according to the agreement that we have with the employees. And we continue to invest in our IT, and you can estimate the capex, 55 to 60, a million shekels a year. So shouldn't be any surprises on that front.

Thank you very much. You're welcome.

I repeat, if you have a question, please press star 1. There are no further questions at this time. Thank you. This concludes the Tel Aviv Stock Exchange fourth quarter and full year 2025 results conference call. Thank you for your participation. You may go ahead and disconnect.