Tel Aviv Stock Exchange

Sapiens Annual Investor Meeting

February 27, 2019

Roni Al-Dor

President and CEO, Sapiens

Sapiens’ Year in Review and Into 2019

Certain statements made in this presentation may constitute “forward-looking statements” within the meaning of Section 27A of the

Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation

Reform Act of 1995. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking

statements (although not all forward-looking statements include such words). These forward-looking statements, which may include,

without limitation, projections regarding our future performance and financial condition, are made on the basis of management ’s

current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future

performance and actual results could differ materially from those contained in the forward-looking statement.

These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-

looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New

risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding

these risks and uncertainties, as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 3 of

Part III of our Annual Report on Form 20-F for the year ended December 31, 2017 and subsequent reports and registration

statements filed from time to time with the Securities and Exchange Commission.

Safe Harbor Statement

3

AGENDA

• 2018 and beyond

• Market trends overview

• Potential for future growth

• Products & innovation

• Leveraging customer base

• Our goals

• Marketing

• India competence center

Agenda

25 new logos

33 Go Lives

5

6

Revenue Growth

$272M$290M

7

Improved Operational Profit

$23.1M$39.5M

8.5 %13.6 %

8

2018and beyond

P&C EMEA & APAC

• Accelerating growth

Our Main Objectives for 2018

P&C NA

• Generating growth

Life

• Stabilizing existing projects

Cross sell

• Generating more sales in existing accounts

9

We Delivered as Planned

P&C NA

P&C EMEA&APAC

Life

Cross sell

Stable GrowthHigh

Growth

10

• Large projects• Strong digital proposition• Strong team of experts• Strong references• Managed services proposition

11

P&C EMEA & APAC

PROPERTY & CASUALTY

IDITSuite

Reinsurance (Global)

P&C North AmericaLaunching a Winning Offering

CoreSuite for Property &

Casualty

Stream

Policy Billing

Policy Billing Claims

Policy Billing Claims

X X12

• Strong suite proposition in the US

• Excellent customer references

• Strong business content

• Innovation and ecosystem integration

13

P&C North America

PROPERTY & CASUALTY

CoreSuite

Reinsurance

Workers compensation

Positioning

• Fit-to-Market Solutions

• Europe - dominant brand position

• North America – gaining momentum

Leading Property & Casualty Offering

14

Key Achievements

• Double digit growth (to 60% of revenues)

• Digital-ready offering

• Entering higher tiers/larger deal sizes (platform & services)

• Shifting to cloud

Europe

Sapiens IDITA

dva

nce

d T

ech

no

logy

Breadth of Functionality

North America

StoneRiverPowerSuite

Adaptik Policy

Bre

adth

of

Fun

ctio

nal

ity

Advanced Technology

Source: Celent 2018.

• Achieving operational efficiency

• Product investment

15

Life, Pension & Annuities

LIFE, PENSION &

ANNUITIES

CoreSuite

Complementary solutions

Run-off solution

Positioning

• End-to-end proposition- Covering both strategic growth business and run-off portfolio management- Comprehensive proposition: both full core suite and business components

16

Leading Life, Pension & Annuities Offering

Key Achievements

• Building strong foundation for growth

• Digital-ready offering

• Focus – exited retirement services projects

• Shifting to cloud

North America

Europe

Source: Gartner 2017.

Bre

adth

of

Fun

ctio

nal

ity

Advanced Technology

Ab

ility

to

Exe

cute

As of August 2017Completeness of Vision

VisionariesNiche Players

LeadersChallengers

Msg Life

Fadata

DXC Technology

Key Lane

Sapiens

Vermeg

IN2

Edlund

Mphasis (Wyde)

Source: Celent 2018.

Sapiens

• Decision is an important component for the newly developed platform for P&C

• Recognized as an enabler for achieving decision automation and business agility

17

Sapiens Decision for InsuranceClosed deal with Tier 1 insurance company

DECISION

• Core Suite for L&P

• IDITSuite

18

Cross Sell

• Reinsurance Pro

• Reinsurance Master

• Reinsurance Master

• CoreSuite for L&P

• Jproducts

• Stream

• CoreSuite for P&C

Number of successful cross sell deals

M&A2018 acquisitions

• Consultancy and development projects with an expertise in the digital domain

• Leading Policy Administration solution in US

19

Looking into 2019

P&C NA

P&C EMEA&APAC

Life

Cross sell

Stable GrowthHigh

Growth

20

Objectives for 2019

P&C NA

P&C EMEA&APAC

Life

Cross sell

Stable GrowthHigh

Growth

21

Managed Services• Build a solid

infrastructure

• Build on existing clients

• Penetrate the market

Digital• Integration with core

systems

• Integration with Ecosystem

• Expand customers base

22

Adding New Pillars for 2019

Adding Two Pillars

Digital

Managed Services

Stable GrowthHigh

Growth

23

24

The Market Evolution

Disruptive Forces in Insurance – The Next Wave

19

25

26

InsurTech on the RISE

Insurancetechnologystart-ups

1,500+

Funding

$10-15B

BusinessCategories

14

26

Disruption or Evolution?

28

Disruption or Evolution?

DISRUPTthe way business is conducted

EQUIPThe business with digital disruptive capabilities

Property & Casualty Life, Pension, Annuities Health & Medical

Underwriting Data, Analytics, Cyber Wearables & Sensors Distribution Validation & Fraud

28

Insurers Investing in Innovation

Source:

Innovation units Insurers as VCs

29

INSURANCEand

InsureTech

will be inseparable

30

31

Our Potential for Future Growth

32

Large and Growing Global Insurance IT Market

Sapiens’ Total Addressable Market:

$40B

Source: Celent April 2017 and Sapiens estimates.

Highly Attractive, Growing Market

Highly Attractive, Growing Market

NEW 20%

Expansion Potential

NA, UK, Nordics, SA,

APAC

Territories

Core products implementation

Services

Hosting, AO

Managed services

2 SI partners

Partners

3333

Expansion Potential

LoBs: personal, commercial

Lines of Business

API layer, Portal, BI

Digital

Tiers 2-4

Tiers

Sapiens + InsurTechpartners

Ecosystem

3434

Realizing Our Potential

35

Roadmap development

M&A

Design partners

SI partnership

36

Our Products & Innovation

PROPERTY & CASUALTY

LIFE, PENSION &ANNUITIES

WORKERS’COMPENSATION

FINANCIAL & COMPLIANCE

DECISION MANAGEMENT DIGITAL

Our Offering

37

Steady growth in all

domains

Investment in Our Products

38

Core Product

39

Services & Partners

Evolution of our ServicesOne hand to shake with long term partnership

Core product implementation

services40

Post-Production Support

Digital SuiteLayer 3

Layer 2

Customer support, application management and operation management

Infrastructure hosting and IT management

Layer 1

Tier 2Customer Application

and ICT Engineers

Tier 3Core Product Experts

and ICT Experts

Tier 1Service Desk

Cu

sto

mer

Ser

vice

Des

k

41

Expanding our SI

Partnerships

42

43

Our Customer Base

…with so many great customers

44

45

from project implementation to

full serviceproposition

from product-oriented to a

customer-centric approach

45

Small companies are looking to sell their products to customers

46

Big companies are looking for products & services for their customers

Changing our mindset

47

Building a Customer Success Team

North America Europe

48

49

Transformation Projects

• While generating great assets for the long term, business and IT transformation is always challenging and tough

• Multi-site competence centers

• Rapid growth (especially in the P&C domain)

Transformation Projects Outlook

50

Development & Delivery Center

• Adopt vs adapt

• Agile methodology

• OOTB / Jump start

• Building training competence center

• Automation tools (DevOps, testing automation)

51

Our Approach

52

• Recruitment – massive growth

• Training

• Delivery – scale-up

• New business – close in 2019 and pipeline for 2020

• Leverage existing customer base

• Products & innovation

• Managed services

• New territories

What We Need to Address in 2019To support growth

DivisionsManagement Team

Tal SharonIPEL

Liana GelikasP&C EMEA,

APAC, Global RI

Osnat Segev-Harel

Corporate Development

Norman TutnauerAlliances

Harold Westervelt

Decision

Roni GiladiCFO

Riki Efraim-Lederman

L&P, NA Life & P&C

Meirav SpieroHR

Tamar Alon-Verber

Business Finance

Yaffa Cohen-Ifrah

Marketing & IR

Ben ShoryDigital, CTO

Raj GhumanSales EMEA,

APAC

Irena GluckBusiness

Operations

Tony NovielliSales NA

Iris Cohen-Carmel

Legal and M&A

Finance, HR

Corporate Development

Sales & Marketing

CTO

5353

• Continue major growth

• Further improve profit

• New M&A

54

Our Main Goals

What Makes Us Different

55

GLOBALLEADING

PRODUCTSANALYST

RECOGNITION

WIDE RANGE OF SOLUTIONS

WIDE RANGE OF SERVICES

Sapiens Rebranding and NamingYaffa Cohen-Ifrah, CMO

Our Challenge: 30 different product names

57

IDITALIS

Stingray

PowerSuite

CompSuite

StoneRiver

URS

FRSClosed Books

Sapiens PORTAL

Sapiens DECISION

Sapiens INTELLIGENCE

Life Portraits

Life Apply

LifeSuite

4SightBI

Stream Claims

Adaptik Policy

Adaptik Billing

Stream BI

eFreedom

Power2Pay

CommonTools

ID3

And 8 Company Names

INSECO

58

AGENDA

We developed a Master Brand Architecture

559

AGENDA

We have a strong brand name:

60

approach

And now we gave it a personal

61

AGENDA

We chose the

CIRCLE

as our leading icon, because it symbolizes a COMPLETE

and WHOLE solution.

62

Sapiens is

unified company

63

64

65

Images

65

We introduced New Product Names

66

PROPERTY & CASUALTY

LIFE,PENSION &ANNUITIES

WORKERS’COMPENSATION

FINANCIAL & COMPLIANCE

DECISION MANAGEMENT DIGITAL

New Look

67

AGENDA

Focusing on our corporate brand:

668

AGENDA

And.. choosing Descriptive Product Names

669

Roni Giladi, CFO

Financial Results 2018

70

Revenue

$290M

Revenue Operational Profit

$40M13.6%

Summary

71

Summary

$290M

Revenue Operational Profit

2018Transition Year

2017

$40M13.6%

$272M $23M8.5%

72

Revenue Growth

73

135.4

157.5

179.3

216.2

272.0

290.3

2013 2014 2015 2016 2017 2018

Non-GAAP Revenues (USD millions)

+16.3%

+13.8%

+6.7%

+20.6%

+25.8%

49.6

91.3

16.6

61.3

92.0

26

74.5

107.2

34.6

112.4120.9

38.7

137.3128.5

24.5

NA Europe* APAC & SA

2014 2015 2016 2017 2018

Annual Revenue by Geography

74

* Europe includes UK, Nordics, Israel and rest of Europe.

Non-GAAP Revenue (USD millions)

The Transition

75

Revenue Breakdown by Division

50 %44 %

34 %

47 %

16 %

9%

216

290

2016 2018Europe* NA APAC & SA

50 % 28 %

30 %

62 %20 %

10 %

216

290

2016 2018

L&P P&C Other*

Revenue Breakdown by Region

(USD millions)

*Other includes Decision and Technology * Europe includes UK, Nordics, Israel and rest of Europe.

Revenue Growth Analysis

290.3

3M18M27M6.3M

272.0 Organic

Japan Exit & Reduction in SA

Project

Currency

M&A

2017 2018

3%

1%10%

-7%

Organic growth rate % where calculated on the basis of 2017, excluding the full revenue attributed to the Japan and SA Project.76

2017 2018 Impact

StoneRiver13M

KP4M

Adaptik10M

$27M

Revenue Growth Analysis

77

Revenue Growth Analysis

Japan Exit 5

Reduction in SA Project 13

Total $18M

78

Japan Exit & Reduction in

SA Project

18

Revenue Growth Analysis

P&C EMEA & APAC ++

P&C NA +

L&P --

Other =

Organic Growth

+3%

79

6.3

80

Profitability

Operational Margin

81

3%

4.7%

12.4% 12.5% 12.5%

13.2%

14%

14.8%

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Operational Margin

82

2017 2018

1 Cost Reduction Q2, Q4Efficiency

throughout the year

2 StoneRiver improvement

Profitability 8% on acquisition 15%+

Corporate Integration with SPNS

Delivery Efficiency Efficiency

R&D Close stream Policy and Billing

Off-Shore Employees

Q4 2016 Q4 2017 Q4 2018

India 212 359 677

Poland 92 118 115

Total 304 477 792

% Off-shore from Delivery & R&D 20% 28% 37%

83

84

Cash Position

Cash and Cash Equivalents

85

• Cash and Cash Equivalents

• $64M as of the end of 2018

• Dividend

• payment of $10M in October 2018

Debt Position

December 2018 $78

January 2019 (10)

Net Debt as of today $68(spread over 7 years)

EBITDA 2018 $43

Debt/EBITDA 1.6

86

Revenue Guidance

2015 2016 2017 2018 2019 Guidance

+6.7%

Revenue GrowthNon-GAAP Revenues (USD millions)

1 2019 guidance per Sapiens press release dated February 26, 2019.

Non-GAAP Revenues (USD millions)

(1)

+25.8%

9.5%-11.3%

318 -323

+20.6%

290.3

272.0

216.2

179.3

87

Revenue Growth Analysis

2018 2019Guidance

$290.3M

$320.5M

88

28.2 2.0

Organic M&A

10%

2019 guidance per Sapiens press release dated February 26, 2019.

89

2018 2019

P&C EMEA & APAC ++ ++

P&C NA + ++

L&P -- =

Other = =

Growth Rate +3% +10%

Organic Growth

90

Profitability Guidance

91

Profitability Increase

2018 Actual

2019G Average

Profit Growth

Revenue 290.3 320.5

Operating Profit 39.5 49.4 +25%

Operating Margin 13.6% 15.4% 180 bps

2019 non-GAAP operating margin guidance of 15.2%-15.6%

92

Operating Profit

2018 Q4 2018 2019

13.6% 14.8% 15.2% – 15.6%

We are in sight of reaching 2019 operating profit starting from Q4/2018

GM R&D Sales G&A

Economy of Scale

- + - +Off-shore

+ + - +

93

Reducing the Risks2016 2017 2018

Largest Customer

13.6% 5.7% 5.8%

Total Top 10 50% 34% 31%

# Customers 200 420 453

Products 11 21 22

Revenues Expenses DiffUSD 56% 40% N/A

ILS 9% 38% Negative

GBP 16% 8% Positive

Euro 12% 2% Positive

94

Summary

2018

1. New Customer/Project2. Improve offshore going

forward3. Integration Adaptik & Stream4. Corporate saving

1. Continue Global P&C double digit growth

2. Moving from decline revenue in L&P to stabilization with positive outlook

3. Margin expansion

Growth & Profitability

2019

Profitability > Growth

95

96

97

Contact: Yaffa Cohen-Ifrah, CMO & Head of Corporate Communications

Mobile: +1-201-250-9414 | Phone: +972-3-7902032

Email: IR.sapiens@sapiens.com | Website: www.sapiens.com