Delek : Investor Presentation - Q1 2021 (En+He)

Q1 2020 Results

May 31, 2021

Disclaimer

This presentation was prepared by Delek Group Ltd ("Delek", or the "Company"), and is given only for the provision of concise information for the sake of convenience. This presentation does not purport to be comprehensive or to contain any and all information which might be relevant in connection with the making of a decision on an investment in securities of the Company or subsidiaries.

No explicit or implicit representation or undertaking is given by any person regarding the accuracy or integrity of any information included in this presentation. In particular, no representation or undertaking is given regarding the realization or reasonableness of any forecasts regarding the future prospects of the Company or subsidiaries.

To obtain a full picture of the activities of the Company and the risks entailed thereby, please review all immediate and periodic reports filed by the Company with the Israel Securities Authority and the Tel Aviv Stock Exchange, including warnings regarding forward-looking information, as defined in the Securities Law, 5728-1968, included therein. The forward-looking information in the presentation may not materialize, in whole or in part, or may materialize differently than expected, or may be affected by factors that cannot be assessed in advance. For the avoidance of doubt, it is clarified that the Company does not undertake to update and/or modify the information included in the presentation to reflect events and/or circumstances occurring after the date of preparation of the presentation. In addition, data and information regarding Ithaca Energy is based on its disclosures which can be found here: https://www.ithacaenergy.com/investors/results-reports-and-publications

This presentation is not an offer or invitation to buy or subscribe for any securities. This presentation and anything contained herein are not a basis for any contract or undertaking and are not to be relied upon in such context. The information provided in the presentation is not a basis for the making of any investment decision, nor a recommendation or an opinion, nor a substitute for the discretion of a potential investor.

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Q1 2021 - Results' Highlights

CONTINUED IMPROVEMENT IN GROUP'S RESULTS

• Contribution from continued operartions1: NIS 307M, vs. NIS 173M in Q1 2020, an increase of 77%.
• Net profit of NIS 279M, vs. a loss of NIS 2.78B in Q1 2020, which was impacted by asset impairment.

CONTINUED DECREASE IN NET DEBT AND INCREASE IN EQUITY

• Net debt of the Company and its staff Companies as of March 31, 2021: NIS 4.2B, a decrease of NIS 160M from December 31, 2020.
• Shareholder equity as of March 31,2021: NIS 2.43B, an increase of NIS 350M from December 31, 2020

STRONG RESULTS TO DELEK'S CORE BUSINESSES

• Natural gas in Israel - contribution to profit from continued operations - NIS 166M vs. NIS 136M in Q1 2020, mainly attributed to a sharp increase in leviathan's sales.
• Oil & gas in the North Sea - contribution to profit from continued operations - NIS 141M vs. NIS 37M in Q1 2020, due to higher prices and lower depreciation and finance costs.

1. Contribution from continued operations excluding asset impairment/revaluation, revaluation of rights for royalties, capital gain/loss, finance, tax, G&A and other

3income/expenses.

Major Developments

AMENDMENT TO UPDATED DEED OF

TRUST APPROVED BY BONDHOLDERS

• Rating covenant to be postponed by several instalments until March 31, 2022, subject to a series of deposits to the trustee account in favor of Q1 2022 debt repayments.
• The Company will raise capital amounting to NIS 125M to NIS 200M.
• The Company will make every effort to complete Ithaca's IPO by September 15, 2021 and transfer the proceeds to the trustees.
• Interest rate for all debenture series will increase by 0.25% starting from June 1st 2021, and until rating will reach BBB-.

FINANCIAL FLEXIBILITY

• Debenture repayments (principal and interest) of NIS 1.6B and full repayments of bank loans amounting to NIS 2B during 2020 and until Q1 2021 publication date.
• Additional assets: Ithaca's shares, holdings in Delek Israel, Leviathan's overriding royalties, the Phoenix loan, 14.7% of Delek Drilling's participation units and real estate.
• Additional measures to strengthen capital and liquidity: refinance at Ithaca's level, issuance of debentures secured by Delek Drilling's participation units

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Continued Decrease in Financial Debt

Debentures (principal)	Financial Debt	Net Financial Debt
NIS million	(Company & Staff Companies)	(Company & Staff Companies)

(914)	)2,350(		)2,038(
5,968	8,228		6,242
5,325	6,148
5,054	5,878	4,343
	4,204

March	Dec 31,	March 31,	March	Dec 31,	March 31,	March	Dec 31,	March 31,
31, 2020	2020	2021	31, 2020	2020	2021	31, 2020	2020	2021

1. Loans from banks & others amounted to NIS 296M as of March 31, 2021, vs. NIS 300M as of December 31, 2020, and mainly include a loan secured by a real estate asset in Herzliya and convertible loan of $50M from BP.

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