March 11, 2018

TASE

Sapiens’ Annual Investor Meeting

Roni Al-Dor

President and CEO, Sapiens

Sapiens’ Year in Review and Into 2018

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, 2016 and subsequent reports and registration

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

Safe Harbor Statement

19 New Customers

22 Customer Projects Went Live.

▪ Proven track record in scouting, engaging and closing M&As

▪ Successful PMI execution

▪ We continue to look for:▪ Products, customer bases and new geographies

5 Acquisitions in 18 MonthsEnhanced U.S. presence, product portfolio and digital capabilities

Beyond Core: Digital Division Was Established

Sapiens Core Policy Administration Services

Digital Enablement & API Layer

Sapiens INTELLIGENCE

BI, Analytics, Reporting

Data Warehouse & Data Store

Data Visualization

Self-Service BI

Cloud

External PoS/ Portal/

Applications

Sapiens DIGITAL Engagement Platform

Customer Engagement Tools &

Apps

Predictive Analytics

Data Lakes

Big Data

InsurTechEcosystem

Decisio

nM

anagem

en

t

PortalsCustomer Journey

AI&ML

Mobile

The Market

Insurance Carriers MUST Stand Out.

Preventive Insurance – IoTSmart homes detect leakage and prevent floods.

Competition from New Business ModelsPeer-to-Peer Insurance

Sophisticated CustomersLow-Touch Interactions

Leverage Data For Insights Social media and customer history used to manage risk.

Cut Costs & Improve EfficiencyAs always…

▪ P&C will continue to grow, with a focus in the U.S., EMEA

▪ Market experiencing fastest disruption – carriers must act fast

▪ L&A core market is slow – complex/tough ROI on migration projects

▪ Split of run-off projects, new business and complimentary

Impact on Solution Vendors

▪ Digital capabilities drive core replacement

▪ As standalone entry point, or on top of core

Industry analyst insights:

How Sapiens is Aligning its Business

Sapiens IDIT Maintains Leadership PositionFull P&C Suite, well-positioned as a market leader for 10+ years

Technology and Breadth of Functionality

Celent research: EMEA Policy Administration Systems, General Insurance, Property & Casualty, February 2016, Craig Beattie

IDIT is Accelerating Across EMEA & APACThe platform has a good and growing reputation…

Singapore

Hong-KongThailand

Into 2018: U.S. P&C

The NA P&C market is the largest, most innovative insurance market globally, hence a strategic market for Sapiens.

▪ Rapid growth in EMEA & APAC – IDIT attention and focus

▪ NA market is highly competitive

▪ IDIT suite is perceived as “Non-U.S.” – not fit-to-market

▪ Lack of North America P&C references

We selected the M&A approach to build our

North America P&C proposition

Factors Driving our NA P&C Market Strategy

Stingray: a Solution for the Low-End MarketFull suite, out-of-the-box capabilities, bundled with BI & Portal

“Stingray’s full, end-to-end solution, combined with a high level of business knowledge, makes it a good solution for (primarily) smaller carriers.”

▪ Preconfigured reports, dashboards and analytics

▪ Self-service BI

4SightAffordable, out-of-the-box BI capabilities, adopted by 30+ carriers

▪ Stream Claims: ▪ One of the best claims systems in US market

▪ PowerSuite®: ▪ Monoline Workers’ Compensation – used by largest state plans

▪ Complimentary Offerings:▪ Reinsurance, Financial & Compliance

▪ Long-term client base using the J-Product/Specialty

StoneRiver (P&C)

StoneRiver (P&C)A solid mix of large, mid and small carriers next to state funds

Adaptik: Sapiens’ Policy & Billing for NAOne of Top 5; Proven Track Record; Solid Management Team

Celent, February 2018

N

DATA &

DIGITAL

ADAPTIK

POLICY

F&C

ADAPTIK

BILLING

STREAM

CLAIMS

REINSURANCE

We Launched Our NA P&C PlatformFor commercial & personal lines

EMEA & APAC North America

Fit-To-Market, Leading P&C OfferingsAll our products are highly ranked.

Data & Digital

Mid- to high-end carriers

Large, state-fund workers compensation

Low-end carriersPersonal,

commercial and specialty

lines

IDIT Adaptik & Stream

PowerSuite Stingray

Reinsurance | Financial & Compliance

Sapiens’ Global P&C Business – 2015-2018Continued growth momentum.

0

20

40

60

80

100

120

140

160

180

2015 2016 2017 2018

Sapiens Global P&C Revenue ($m)

Into 2018: L&A

EMEA

No

rth

Am

eric

a

Sapiens ALIS for New Business One of Top Players, Full Core Suite for L&A carriers

Sapiens Closed Books to Manage RunoffReducing the Cost of Ownership

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

Year 1 Year 2 Year 3 Year 4 Year 5

Cost of Runoff Business as-is

Cost of Runoff Business With Sapiens*

* Graph reflects real customer use case

▪ Streamlines New Business

▪ Provides point-of-sale access anywhere

Sapiens Complimentary L&A Offerings Leading Underwriting and Illustrations solutions (StoneRiver)

Fit-To-market, Leading L&A Solutions

Core New Business

Sapiens ALIS

Focus on EMEA

Focus on new business

Run-Off Core

Closed Books

One of the best in the market

Big-player BPO market

Complementary Offerings

LifeSuite®, LifeApply®,

LifePortraits®

Successful in North America

Expand to EMEA

Into 2018: Digital

Established Sapiens Data & Digital DivisionInjecting digital capabilities into and around our core.

Ease of doing

business

Online insurance

Mobile interaction

Social media

integration

Tailored customer journey

Preventive insurance

Risk-related insights

Our Data & Digital Assets Enhance Our Core

Core

Data Digital

Core

DigitalData

Cloud

We Expanded Our EcosystemWorking closely with small and large innovation companies.

Into 2018: Services

▪ Project & program management

▪ Business analysis

▪ Implementation services

▪ On & off-shore mix

▪ System integration

▪ Business consultancy

▪ Business transformation

▪ Training

▪ Data migration

▪ UAT & Testing

▪ Hosting

▪ Application management

▪ Full managed services

▪ Support & maintenance

Expanded Our Services Offering

Implement Transform Manage

Into 2018: Territories

TerritoriesObserving rapid growth in U.S. & Nordics;South Africa & Turkey Emerging…

0

20

40

60

80

100

120

140

160

2015 2016 2017 2018

Sapiens’ NA Business ($m)% of WW revenue

Sapiens’ NA Market Presence is GrowingGrowing focus on NA, via M&As and organic growth.

50%

41%

34%31%

Revenue ($m)

0

5

10

15

20

25

30

2015 2016 2017 2018

Sapiens Nordics Revenue ($m)

Sapiens’ Presence in NordicsNew market penetration

1.4%

8.5%9.5%

Revenue ($m)

Cross- & Up-Sell

So What’s The Difference?

We have DOUBLED Our Customer Base

We are ready to accelerate and scale-up, by leveraging our customer base for up-selling and cross-selling.

Corporate Focus – Into 2018

IDIT growth

Go-lives New logos

NA P&C

Complete PMIAccelerate growth

Cross-/up-sell

Leverage 400+ customer relationships

L&A

New business, run-off & complimentary

Digital

Enhance offering and accelerate sales

Other

DECISION – accelerateRI – expand

Growth & profit balance

Expand services

Managed services, UAT, migration

Prepare for 2020…

The Pit Stop isfinished, and we’re ready to drive full speed ahead!

50

Thank You

Markets, trends & solutions in the global insurance marketAlex Zukerman, Head of Corporate Product Strategy

An industry going through deep transformation

InsurTech by Numbers

InsurTech by Numbers

185Newly Funded Companies

107Enablers

20169

Insurers

69Intermediaries`

Insurance Tech is on the Rise

Blockchain Insurance Industry Initiative

Collaborations and Alliances

B3i – a true industry collaboration The Automated Driving Insurer Group

13 insurance brands formed an alliance to tackle the changes needed to ensure driverless cars are safe

and comply with regulations

Insurers with Innovation units

Source:

Accelerators, Hubs & Labs

InsureTech – Reality check

Gartner Hype Cycle Diagram

Insurance vs. InsurTech Firms

Core Solutions are Key to Business Success

“Over 60% of life and P&C CIOs indicate the legacy modernization is extremely or very important”

- Gartner

Disruption, Revolution, Evolution

Disruption, Revolution, Evolution

Digitalization of Business(“Inwards looking”)

Digitalization of existing processes

Modernizing & automating existing structures & processes

Digital Insurance

(“Outwards looking”)

Creating new digital business models and engagement models

Digital Strategy in Insurance

IoT & Wearables

Machine-learning & Artificial Intelligence (AI)

ChatBots, ClaimBots, MedicalBot, Etc.

AVA is Metromile’s AI claims assistantIt accurately verifies claims in seconds and

quickly resolves them

Jim is Lemonade’s claims botIt reviews, cross-references policies and even

pay claims instantly

Eve is microUmbrella’s chatbotIt assists customers in buying the right protection plan and in making a claim.

Voice Computing

Robo-Advice & Needs Analysis

Predictive Analytics & Algorithmic Business

Social Media in Insurance

Admiral to price car insurance based on Facebook posts

AXA, the first insurance brand to adopt Facebook Messenger

Autonomous Cars

Drones

Blockchain

Fraud Detection and Risk Prevention

Digital Claims Management

Distribution

Cloud & SaaS

“Cloud is no longer just about cost reduction, as insurers use it to drive organizational agility”

Direct-to-Consumer

New domains are getting insured (Cyber, Drones…)

On-Demand Insurance

trōv SURE.

Personalization & Usage-Based Insurance

Social Responsibility, Collaboration and Environment

New Disruptive Entrants: Customer Ownership

The Effect of Digital Disruption

New Digital Architecture – Platforms

Disruption, Revolution, Evolution

PROPERTY/CASUALTY

INSURER CIO PRESSURES

AND PRIORITIES 2018

Disruption = Opportunity

Leadership in a Rapidly Changing, Fast-Growing Environment

Sapiens Strategy – Digital Platform

Core

Data Digital

Core

DigitalData

Cloud

Innovation & Digital-focused organization

CTO Office Product Strategy

Digital Division

Market Strategy

Innovation

Partnerships

Thought leadership

Customers’ dialog

Research

Domain Expertise

InsurTech Ecosystem

Entrepreneurship

Industrialization

Sapiens’ Innovation Approach

POC and capability

proof

Identify innovative technology

solution(partnership / development)

Define a Use Case

Identify a business need or a current

market malfunction

From the drawing board to reality

Partnerships & EcosystemInsurTech

Partnerships & Ecosystem

Partnerships & EcosystemFew of our partners

Sapiens Digital Platform

Sapiens Digital Platform

Sapiens Digital Platform

Sapiens Digital Platform

Sapiens Digital Platform

Digital Accelerator & API Layer

Sapiens Core PAS External Systems

Sapiens Intelligence

Digital Engagement

Sap

ien

s C

LOU

D

Sapiens Digital Platform

Digital Accelerator & API Layer

Sapiens Core PAS

Sapiens IDIT

Sapiens ALIS

Sapiens CB

External Systems

Legacy PAS CRM BillingNA P&C

Suite

Sapiens Intelligence

BI & Data Analytics

Digital Engagement

InsurTech & Industry API

Customer Engagement

Customer Centricity

MobileOmni-

ChannelJourneys Self-Service

Machine learning Artificial Intelligence Personalized Video ChatBot IoT Image recognition

Sap

ien

s C

LOU

D

Data Management

Digital Micro-Engines

API & Integration

In the frontline of Insurance Disruption

Thank You

Financial Results 2017Roni Giladi, CFO

2017 Summary

Revenue

$272MH1

$4.9M3.9%

H2 $18.2M

12.4%

Operational Profit

135.4

157.5

179.3

216.2

272.0

2013 2014 2015 2016 2017

RevenueNon-GAAP Revenues (USD millions)

+16.3%+13.9%

YoY Growth

+20.6%

+25.8%

Revenue Growth Analysis

2016 2017

M&A

Organic216.2

+26.8

+68

272

-26.5

-12.5Halted Project

Japan

49.6

91.3

16.10.5

61.3

92.0

20.65.4

74.5

107.2

30.2

4.4

111.8

121.5

18.1 20.6

NA Europe* APAC South Africa

2014 2015 2016 2017

Annual Revenue by Geography

Non-GAAP Revenues (USD millions)

Focus on North America and Europe

* Including UK, Europe, Nordics, Israel

2017 Annual Non-GAAP Results

2016 H1 2017 H2 2017 2017 Annual

Revenues 216,190 125,701 146,302 272,003

Gross Profit 91,767 46,859 59,808 106,667

42.4% 37.3% 40.9% 39.2%

R&D 22,033 18,062 19,460 37,522

SG&A 40,119 23,882 22,150 46,032

Operating Profit 29,615 4,915 18,198 23,113

13.7% 3.9% 12.4% 8.5%

Financial Income (expenses) 640 (917) (1,863) (2,780)

Minority 123 38 109 147

Profit before Tax 30,378 4,036 16,444 20,480

Tax (6,179) (925) (4,015) (4,940)

Tax % 20.3% 22.9% 24.4% 24.1%

Net income 24,199 3,111 12,429 15,540

11.2% 2.5% 8.5% 5.7%

(in USD million, except per share amount)

OPEX Reduction During 2017

Q2/17 H2/17 AVGReduction in

OPEX - Q

Revenues69,167 73,151

GM %38.2% 40.9% +2.7%

OPEX23,172 20,805 -2,367

Profit3,217 9,099

4.7% 12.4%

Japan 2014-2018

0%

5%

10%

15%

20%

25%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2014 2015 2016 2017 2018

Revenues Profit (%)

Growth in Our Off-Shore Activities

Q1 2015 Q4 2015 Q4 2016 Q4 2017

India 25 86 212 359

Poland 1 14 92 118

Total 26 100 303 478

% Offshore from Delivery & R&D

3% 8% 20% 28%

Currency impact

H2 2016 Actual

H2 2017 Actual

H2 2017 in Constant Currency

Diff

Revenue 113.6 146.3 143.3 -3.0

Expenses 98.7 128.2 123.1 -5.1

Profit 14.9 18.1 20.2 2.1

% 13.1% 12.4% 14.1% 1.7%

Cash Position

Cash Position

Cash 31/12/2017 $71.5m

Acquisition of Adaptik ($20m)

Current debenture ($80m)

Principal payment $10m every year starting 1/1/2019

Interest rate paid twice a year 3.67%

2018 Guidance

Revenue Guidance

157.5

179.3

216.2

272 280-285

2014 2015 2016 2017 2018 Guidance

Revenue TrendsNon-GAAP Revenues (USD millions)

1 2018 guidance per Sapiens press release dated February 12, 2018.

(1)

+13.9%

+20.6%

+25.8%

+2.9-4.8%

Revenue Growth Analysis

2017 2018 Guidance

M&A

272

-10

280-285

India & Poland Japan

Mega Project extensionOrganic

growth

Revenue Mix - Growth Areas

% of Revenues

High growth 43%

Growth 30%

Stable 25%

Decline 2%

Revenue Split by Lines of Business

50%30%

30% 60%

20% 10%

2016 2018

L&P P&C Decision & Tech

Revenue Split by Regions

50% 45%

35% 50%

15%5%

2016 2018

Europe U.S. Rest of World

Profitability

Back to Profitability

13.7%

2017 20182016

8.5% 12-13%

Back to Profitability – Continued

2016 2017H1

2017H2

2018Q1

2018Q2,Q3,Q4

13.7% 3.9% 12.4% 10%

2018

12%-13%

Gradual improvement

2017

8.5%

Profitability Growth>Year 2018 :

1. New customers/projects▪ Focus on profitability▪ Team setup preparation at the final stage

2. Improve offshore activity going forward▪ Increase the ratio of offshore▪ Initiative to begin product development activity offshore

3. Integration of Adaptik & Stream▪ Savings on R&D efforts

4. Corporate saving

Reducing the Risks

2015 2016 2017

Largest customer 14% 6% 5%

Total Top 10 50% 34% 30%

Revenues Expenses Diff

USD 60% 35% N/A

ILS 8% 43% Negative

GBP 15% 8% Positive

Euro 10% 3% Positive

Other 7% 11% Negative

Revenues & Expenses Split by Currencies

Top Customers

Any Questions?

www.sapiens.com

Thank You

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

Mobile: +1-201-250-9414 | Phone: +972-3-7902032Email: IR.sapiens@Sapiens.com | Website: www.sapiens.com