Delek Group

1
Delek Group
Alan Gelman CFO Deputy CEO
June 2007
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Disclaimer

• This presentation has been prepared by Delek
  Group Ltd (Delek or the Group) and is
  provided to you solely for your information and
  is not to be copied or distributed to any other
  person. This presentation does not purport to be
  all-inclusive or to contain all of the
  information that may be relevant in making any
  decision concerning an investment in the
  securities of the Delek Group.
• No representation or warranty, express or
  implied, is made by any person as to the accuracy
  or completeness of any of the information
  contained herein. In particular, no
  representation or warranty is given as to the
  achievement or reasonableness of any forecasts
  about the future prospects of the Delek Group.
• This presentation does not constitute an offer
  or invitation to purchase or subscribe for any
  securities, and neither this presentation nor
  anything contained herein shall form the basis of
  or be relied upon in connection with any contract
  or commitment whatsoever.

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Who We Are?

• Founded in 1951 as Israeli retail petrol
  distributor
• Since 1999, controlled by entities related with
  Isaac Sharon (Tshuva)
• TASE 12th largest company 2.7bn market cap.
• Global investment focus on strategic sectors
• Energy Infrastructure
• Real Estate
• Financial Services
• Seek complementary acquisitions, leveraging
  industry experience

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Group Strengths

• Experienced and swift acting management team
• Ability to Identify unique investment
  opportunities
• Proven value enhancing track record
• Established reputation with banking community and
  capital markets
• Dividend policy 40-50 quarterly

Driving Shareholder Value
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Market Perspective
Dividend Allocation
Source TASE, correct as of 29/5/07 Dividend
yield is calculated based on share price at the
start of the year
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Sector Focus
Energy Infrastructure
Automotive
Real Estate
Insurance Financial Services
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Energy Upstream

• Israel First Natural Gas Discovery Offshore
• Sole Israeli independent energy source
• Strategic Joint Venture with Nobel Energy
• Experienced international operator
• World class natural gas Yam Tethys reservoir
• Long term contract with Israeli Electricity Co.
• Prospect for second natural gas reservoir off
  Northern Israeli coast
• Global Projects Expanding Capabilities
• Vietnam, Russia and USA

Yam Tethys, Israel
Vietnam project
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Energy Downstream

• Retail Operate Gas Stations Worldwide
• US 502 retail fuel convenience stores, 8
  states
• Israel 2nd largest retail operator 232 gas
  stations
• Europe 869 gas stations (pending completion)
• Refining 60,000 bpd Oil Refinery (US)
• Sole supplier in Tyler, Texas
• Outperforming Gulf Coast crack spreads
• US Based Marketing Supply
• 2 terminals and 114 miles of pipelines

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Infrastructure Water Desalination

• Leader in water desalination technologies
• Use of both thermal and membrane technologies
• Over 360 plants constructed worldwide
• Plants in key locations worldwide
• Israel, Cyprus, China, Spain, California, India,
  Kazakhstan etc.
• Built worlds largest sea-water desalination
  plant
• Most technologically advanced plant in the world
• 100million m3/year capacity
• Located in Ashkelon, Israel

Reverse osmosis method, Cyprus
Ashkelon, Israel
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Real Estate Active Portfolio Management
Income Producing Assets
Strong Tenants

• In robust economies
• Prime location
• Development potential
• High occupancy rates
• Long term leases

• DGREs tenants comprise public bodies, well-known
  financial institutions and major corporations

Growth and Leverage
Location of DGRE Portfolio

• Leases with built-in rental uplifts
• Matched liabilities to long-term assets
• High loan to value (65)

Value based calculation. Based on Delek Global
Real Estate (DGRE) ownership share using values
correct as of 31/12/06. Not including Marriott
hotels (UK) and RoadChef (UK)
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Financial Services - Delek Capital

• Phoenix Holdings Ltd. (55.5) - Israel
• One of Israels top 5 insurance groups
• Market Share - 16 in Life Insurance 12 in
  General Insurance
• Republic Companies, Inc. (100) - USA
• Property and casualty insurer in 4 States in
  South West USA
• 8 insurance companies with licenses in 42 States
• Niche business with large growth potential

Seeking to build leading global financial
services platform
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Delek Automotive Systems

• Israels leading vehicle importer since 1995
• Sole importer distributor of Mazda Ford
• Mazda 1 brand and Ford 4 in Israel
• Market share 24
• In 2007 launched 9 new Mazda Ford models
• Entering into new segments, compete in 90 of
  total car market

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Financial Performance
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Year-on-Year Growth in Profitability
Delek Group Net Profit
Unit NIS million
NIS 1,513
CAGR 102
NIS 622m
NIS 403m
NIS 325m
NIS 310m
NIS 183m
2003
2004
2005
2006
Q1/2006
Q1/ 2007
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Impressive Financial Performance
66
ROE
33
29
ROIC
15
9
21
21
18
13
8

ROE (Return on Equity) Net Income/ Shareholders
Equity, average ROIC (Return on Invested Capital)
(Operating income x(1-0.32))/((trade
receivables inventory trade payables) PPE
net), average
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Looking Ahead

• Energy
• Initiate work on Israels largest exploration
  project
• Acquire additional gas stations and oil
  refineries
• Grow Delek Europe (Road Chef, Chevron)
• Real Estate
• Strong pipeline of income producing assets
• Financial Services
• Identify MA opportunities in US and Europe
• Expand product base
• Automotive
• Maintain leadership, 9 new models
• Value Potential
• IDE Israel Fuel Corp.

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Thank you
Contact Us Dalia Black Head of Investor
Relations Email black_d_at_delek.co.il Tel 972 9
863 8444 www.delek-group.com
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Major Holdings
Delek Group
Market cap. 2.7 Billion
TASE (TA- 25 Index)
68
100
100
Delek Real Estate TASEDLKR 994m
Delek Investment Properties
Delek Petroleum
94
100
100
89
64
77
100
55
Delek Automotive Systems TASEDLEA 957m
Delek Capital
Gadot Biochemicals TASEGDBC 48m
Delek Energy Systems TASEDEOL 327m
Delek USA
Delek Israel Fuel Corp.
Dankner Investments
Delek Belron International
NYSEDK 1,210m
77
16
51
69
100
Delek Infrastructure
HOT Cable Media System TASEHOT 775m
Delek Drilling LP TASEDEDR.L 313m
Delek Global Real Estate AIMDGRE 1,030m
Avner Oil Exploration TASEAVNR.L 272m
50
100
55.5
100
Republic Companies Group
Phoenix Insurance TASEPHOE 1,209m
IDE (Israel Desalination Enterprises)
IPP (Power Station)
Note All market cap.s currency conversion
rate, correct as of 29/05/07 Cumulative holdings
of Delek Investments