The Tel-Aviv Stock Exchange Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to the Tel-Aviv Stock Exchange Q1 2026 Results Conference Call. All participants are present in listen-only mode. Following management's formal presentation, instructions 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 May 12, 2026. The recording will be publicly available on the TAZE website. Ittai Ben-Zeev, CEO, Yehuda Ben-Ezra, CFO An interim report for the first quarter of 2026, in which full and precise information is presented and may contain inter alia forward-looking statements, in accordance to Section 32A of Securities Law 1968. In addition to IFRS reporting... Thank you for joining us. and the most comparable related gap 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.kays.co.il. Mr. Ben-Zeev, 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 strong financial statements for Q1 2026 reveal record results across all Tate's core business lines and operations, with revenues growing by a substantial 40% compared to Q1 2025. It's a 50% surge by 87%, and the adjusted EBITDA margin reached 63%, while TAFE adjusted net profit was 112% higher than in Q1 2025. These results reflect the continued implementation of TAFE's strategic plan and the growth potential of Israel's capital market, despite Israel having been fighting a multi-front war for a large part of the quarter. Yehuda Ben-Ezra, our CFO, will discuss the financial statements in detail later in this call. Elevated trading volatility was a prominent feature of Q1 2026. This was largely the result of the tensions between the United States and Iran, which, following several unsuccessful attempts at negotiations, led to war breaking out with Iran at the end of February. After 40 days of fighting, a ceasefire was declared. Even during this challenging period of Israel being engaged in a war simultaneously on several fronts, we have witnessed the stability and resilience of the Israeli society and the country's economy with this being reflected in taste record Q1 results that show significant growth in trading volumes compared to Q1 2025. In Q1, the TA35 and TA125 indices posted gains of 12.9% and 9.6%, respectively, in contrast to the losses of 3.2% and 4.3% posted by the Dow Jones and S&P 500 indices, respectively. At the end of the quarter, Tate's equity market cap reached 2.3 trillion shekels compared to 1.4 trillion shekels at the end of Q1 2025. In the first quarter, trading volumes on the equities market soared to an all-time high of 5.6 billion shekels A surge of 92% compared to 2.9 billion shekels in Q1 2025 and 61% higher than the ADV for the whole of 2025. The first quarter also saw a surge in the ADV of dual listed equities that rose by 81% to 1.17 billion shekels from only 648 million shekels in 2025. Among the factors contributing to the sharp rise in trading volumes were the transition to a Monday through Friday trading week, heightened foreign investor activity, and the public making substantial cash inflows into the local indices. Additionally, during the first quarter, we also saw substantial growth of 3.1 billion shekels in purchases of local equity index ETFs as well as 1.8 billion shekels in purchases of local bond index ETFs, while in contrast, foreign equity index ETFs recorded sales of 5.3 billion shekels. The value of the public's holding in foreign ETFs traded OnTaste rose to 19.6 billion shekels, 4.5 billion shekels more than in Q1 2025. Eight new companies completed IPOs OnTaste during the quarter, raising a total of 1.9 billion shekels compared to five IPOs in Q1 2025 that raised 0.7 billion shekels. We have received inquiries from dozens of other companies that are considering making IPOs on case, and we expect to see other companies completing this process in the near term. The Ministry of Finance raised 46.6 billion shekels on case during the first quarter, compared to 49 billion shekels in Q1 2025. The Ministry of Finance was also successful in raising $6 billion on the international market, an achievement that represents a further expression of confidence in the Israeli economy, even during this time of global and local security challenges. Corporate board issuances total 45 billion shekels in the first quarter, 20% higher than in Q1 2025, and 33.2% higher than in Q4 2025. As you all know, at the beginning of January, we switched to a Monday-Friday trading week, a measure that has proven to be a clear success. Friday trading volumes have considerably exceeded those of Sundays, surging from an average Sunday volume in 2025 of 1.6 billion shekels to average final volume of 4.4 billion shekels, a 175% boost. Moreover, foreign investment participation and market liquidity levels have both increased noticeably. We are continuing to progress with our strategic plan whose goals include enhancing the liquidity and marketability of TAFE companies. In this connection, I would like to note that eight companies have already joined TAFE's fellow-made program. It can already be seen that the program is establishing its position as a significant tool for bolstering liquidity and expanding the base of foreign and local investors in the Israeli capital market. While foreign investors account for approximately 31% of the overall activity on taste equities market, they represent about 37% of the trading volume in tailor-made equities. We believe that we will see more companies joining the program in the coming months. In the derivatives market, we added two new market makers to the Futures Market Making Program at the end of March. Three market makers are now operating within the framework of the program. This significantly stresses the market making program which contributes to liquidity in each of the contracts. The addition of these market makers took place at the same time as our launch of a new futures contract on our flagship TA125 index and is a continuation of TAFE's strategic plan to develop and improve the local capital market and align it with the practices of the global futures market. I would like to point out that since the launch of futures in September 2024, we have seen a steady increase in the use of this tool by domestic and foreign capital market participants. The monthly trading volumes have jumped from approximately 7,500 units in December 2024 to approximately 65,000 units in March 2026, a significant increase testifying to a real market need for these hedging and exposure products. In addition, we are promoting A reform in the liquidity of the corporate bond indices, whereby one of the threshold terms for inclusion in the leading bond indices will be a liquidity criterion that the bond will be required to meet. The new reform builds on the success of the equity indices liquidity program and constitutes a crucial pillar in the development of the bond market on taste. The transition to Monday through Friday trading week has boosted foreign investor activity and the liquidity reform is expected to further deepen the participation of both foreign and local investors in the Israeli bond market. The program will go into effect on July 30, 2026. In conclusion, The first quarter's strong financial statements reflect the resilience of the Israeli capital market and pay stability that stand on the solid foundation of the Israeli economy, even during this challenging period. We continue to work to develop the local capital market and to achieve the goals of our strategic plan, while constantly perfecting and diversifying Taste Products and Processes. And now, I'd like to hand over to Mr. Yehuda Ben-Ezra, who will continue with a review of the first quarter's results.

Thank you, Ittai. As Ittai has already mentioned, tests outstanding first quarter financial results are the ultimate testament to the highly successful first quarter of 2026. With the company delivering record revenues across all lines of businesses, Once again throughout the first quarter, it has demonstrated remarkable resilience, even as it has faced an extended multi-form conflict. I will continue with slide 6, which shows some of the key highlights from our results for the first quarter of 2026. Our revenues reached a new high of 183.3 billion shekels, increasing by a record 40% compared to the same quarter last year. Adjusted EBITDA improved significantly by 87% to a record 115.6 million shekels, while the adjusted EBITDA margin also improved from 47.2% to 63.1%. Our net profit displayed substantial growth of 116% and increased to a new record of 77.4 million shekels. Our basic EPS reached a new high 0.836 shekels, increasing by a record 114% compared to the same quarter last year. Let's move on to slide 7, which shows some of the key highlights from our results for the first quarter. Revenue amounted to 134 million shekels compared to 131 million shekels in the same quarter last year. And in case of 40%, this is our highest quarterly revenue since test IPO, and Goforth Evidence across all operations. Expenses total 84 million shekels compared to 84.8 million shekels in the same quarter last year, a decrease of 1%. Adjusted EBITDA total 115.6 million shekels compared to 61.8 million shekels in the same quarter last year, an increase of 87%. The increase is due mainly to the higher revenues and lower costs. Debt profits amounted to 77.4 million shekels compared to 35.8 million shekels in the same quarter last year, and increased of 116%. The increase is due mainly to the increase in revenue from services, which was partially offset by the increase in tax expenses. Moving on to slide 9, we can take a deeper look into our first quarter revenues. Revenues from trading and clearing commissions, despite there have been two late trading days in the quarter this year, have been increased by 44%, compared to the same quarter last year, and totaled 71.1 million shekels. The increase is mainly due to the higher trading volumes in shares and bonds, and the volume of creation and the reduction of mutual fund units. Revenues from listing fees and annual levies. increased by 7% compared to the same quarter last year, a total of 27.5 million shekels. The increase is due mainly to revenues from annual levies as a result of the increase in the number of companies and funds. In addition, revenues from listing fees and examination fees were also higher due to the increase in the number of funds placed. Revenues from clearing out services increased by 69%, Component of the same quarter last year and totaled 53.9 million shekels. The increase is mainly due to higher revenues from services to members as a result of higher volumes of activity and due to the increase in revenues for custodianships as a result of the increase in the value of the assets that are held in the custodianship and to an increase in the average commission rate. Revenues from data distribution connectivity services It kills by 23%, compared to the second quarter last year, and totaled 30.1 million shekels. The increase is mainly due to higher revenues for motorization to use in the test indices, and the data distribution for businesses and private customers in Israel. I will continue with slides where we show some of our first quarter expenses. Compensation expenses decreased by 1% compared to the same quarter last year and totaled 44.3 million shekels. The decrease is mainly due to utilization of vacation days. Computer and communication expenses decreased by 7% and totaled 11.7 million shekels. The decrease results mainly from a reduction in the maintenance cost of new computer systems and licenses and from a decrease in the manpower and projects. Marketing expenses. Zikirta 34%, compared to the same quarter last year, and totaled 1.2 million shekels. Zikirta is up, mainly from a reduction in the marketing expenses this quarter, compared to the same quarter last year. Depreciation of utilization expenses increased by 8%, compared to the same quarter last year, and totaled 15.7 million shekels. The increase is due mainly to a new project to increase in software and license. MEP cannot take income, totaled 2.0 million shekels. The increase is due mainly to an increase in the balance of deposits and to a reduction in the interest expenses on a loan. Let's now go to slide 13, where we can review our financial position at the end of first quarter of 2026. Our equity total, 585 million shekels. Our adjusted equity, which includes deferred income from lifting fees that excludes operability position balances represents 76% of the adjusted balance sheet. We held 488 million shekels in cash and investment in financial assets. The balance of the bank loan totaled 79.6 million shekels. The surplus equity of the regulatory requirement totaled 484 million shekels compared to 550 million shekels at the end of 2025. The surplus liquidity of the regulatory requirement Total 238 million shekels compared to 310 million shekels at the end of 2025. The decrease in stock price equity and liquidity is mainly due to the 144.8 million shekels dividend paid in the current quarter. Let's look at slide 14, where we can review our first quarter cash flow highlights. Cash flows from investing activities resulted The change is due mainly to the abiding of company shares at 2.6 million shekels in the first quarter of last year. Test free cash flow increased by 34.4 million shekels compared to the same quarter last year, a total of 70.1 million shekels. The increase was mainly due to an increase in the EBITDA. In conclusion, test core performance in the first quarter of 2016 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 questions. The first question is from Don Fannin of Jefferies. Please go ahead.

Good evening, gentlemen. This is actually Rick Roy on for Dan today. How are you guys doing today? Good. Hi, Rick. Good to hear you. Good to hear from you guys as well. So I wanted to first dig into the momentum and altering leverage you guys are seeing in the clearinghouse services segment. If you could please maybe expand on the sustainability of these asset levels. How much of the forward outlook is predicated on data versus the pipeline of new members and new services? And relatedly, were there any pricing changes to call out in the quarter?

Okay, I will start with the last question. There were no changes into the pricing. What we see in our clearing and settlement is a few positive factors that combine all together. We've been seeing a substantial increase in trading volumes, which of course brings also more activity within the clearing and the settlement between the members. On top of it, we've been seeing a growth in the mutual fund and ETF domain. The AUM has been growing. So by definition, in terms of the custodian fee that we charge Once the AUM is higher, then our revenues are high as well. And as we did in the past few years, reforming all of the OTC clearing and settlement, basically now we work in a model that is more in line with the global clearinghouses. So all of these factors basically contributes to the positive revenue growth that we see. And we expect as long as the trading volume will continue to grow together with the AUM, to see it with correlation with the clearing activity and revenues.

Thank you. And then maybe if I could also add, do you have any changes in your outlook for the expenses as you think about the rest of the 2026?

So I guess that, you know, we will not end the 2026 at the same level of expenses as we had in the first quarter. You know, we have the about the employees and year by year Cyber and all of those elements. So I guess that, you know, throughout the year we'll have a modest increase in our expenses, but, you know, no surprises.

I guess maybe digging into that one more level. So outside of maybe the new compensation agreements ongoing as well as, you know, some of the stuff you guys are doing in terms of credit facilities, et cetera, do you see – I guess sustained depression of expenses due to the conflict and ceasefire, et cetera, ongoing in the region.

You mean, can you clarify the question? Because I'm not sure that I fully understood you.

I guess just to expand on what you said, outside of, you know, the compensation plans discussed in the earnings, Thank you very much.

If there are any additional questions, please press star 1. If you wish to cancel your request, please press star 2. Please stand by while we poll for more questions. Thank you. This concludes the Tel-Aviv Stock Exchange G1 2026 results conference call. Thank you for your participation. You may go ahead and disconnect.