Sapiens Q2 2021

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DisclaimerForward Looking Statements

Certain matters discussed in this presentation, that are incorporated herein and therein by reference are forward-looking statements within the meaning ofSection 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, thatare based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified bythe use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views withrespect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity,performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-lookingstatements, including, but not limited to: the COVID-19 (coronavirus) pandemic, which may last longer than expected and materially adversely affect our resultsof operations; the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companiesthat we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate ourability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization ofrevenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; difficulties in successfully planning andmanaging changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates ofproject costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose toour business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issuesrelated to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insuranceindustry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses andepidemics like the recent novel coronavirus outbreak, or fluctuations in currency exchange rates; and risks related to our principal location in Israel and ourstatus as a Cayman Islands company.While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, orthese risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. under theheading “Risk Factors” in our most recent Annual Report on Form 20-F and in our other filings with the SEC, in order to review conditions that we believe couldcause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements aspredictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee thatfuture results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except asrequired by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this presentation, to conformthese statements to actual results or to changes in our expectations.

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The global partner of choicefor insurance carriers that seek to digitally transform their business

for the next generation

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Sapiens Key Metrics and Differentiators

~$40bnTarget Market

$463.5M2021 Revenues(1)

$80.4M2021 Operating Profit(1)

600+Insurance Customers

17%10-YearRevenue CAGR(1,2)

1 Hand-to-shake Business Model

17Acquisitions 2010-2021

(1)Revenue and operating profit presented on a non-GAAP basis. Based on 2021 midpoint of guidance provided on August 4, 2021(2) 2012 through H12021

Servingall Key Insurance Markets (P&C and L&A)

Global presence

in all Tiers

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Evolving Customer Expectations

Carriers Replace Legacy IT Infrastructure

Demand for Digital Transformation, Cloud Deployments

Carriers Face Competition from Industry Disruptors

Adapt to Regulatory Changes

Constant Drivefor Improved Efficiency

Multiple Insurance Industry Dynamics Fuel Market Growth

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Unique Market Position Delivers a Large and Growing TAM

Sapiens’ Unique

Market Position

• P&C and L&A

• Unique software and services model

• Global footprint

• Presence across all tiers

Source: Gartner, Forecast: Enterprise IT Spending for the Insurance Market, Worldwide, 2018-2024, 2Q20 Update. 2 Includes internal services, telecom services, devices, and datacenter systems. 3 Includes consulting, business process outsourcing, implementation, managed services and cloud infrastructure services. 4 Source: Company’s estimates; The above mentioned report by Gartner; Celent, IT Spending in Insurance, September-2020.

11,000 Insurance Carriers Globally

Target MarketInsurance Software

Solutions and Services

Global Insurance Technology Spending1

$48bnInsurance Software Solutions

$74bnIT Services3

$96bnOther Services and Systems2

$218bn $40bn4

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“Insurance-in-a-box”

Pre-integrated, low-code offering allows customers to choose between end-to-end deployments or any combination of our solutions

“One- hand to- shake” business model

Core Platforms Customer Engagement

ClaimsPolicy BillingData and Analytics

Decision Management

Digital

Complementary Solutions

Reinsurance

Financial & Compliance

Underwriting

e-Application

Illustration

Coherent Cloudified Digital Insurance Platform

Providing Exceptional Valueto our Customers Across their Lifecycle

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Recognized by Leading Industry Analysts

Life Insurance Illustration Systems, Advanced Technology and Breadth of Functionality, North America, 2020

Life, New Business & Underwriting Systems, Breadth of Functionality, North America, 2020

Non-Life-Insurance Platforms, Europe, 2020

Life Insurance Policy Administration Systems, Europe, 2020

Magic Quadrants

P&C Policy Administration Systems, Breadth of Functionality, EMEA, 2021

P&C Claims Systems Vendors, Breadth of Functionality, EMEA, 2021

Customer Base Award for recently acquired company Tia Technology, EMEA, 2021

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Successful “Land-and-Expand” StrategyMirrored by Global Presence

Development and Delivery Centers Office Locations Countries of Operations

Customers Across

600+

30Countries

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Proven Track Record of Strategic Acquisitions

2011 2015 2016 2017 2018 2019 2020

• Product proposition

• Customer base

• Geography

• Technology

• Talent expansion

A decade of strategic acquisitions supporting:

CoreSystems

Near and Offshore Geographic Expansion

Europe

INSSECO

North America

ContinueStrategic

Acquisitions

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Well Positioned for Continued Growth

Large and Global TAM

Market Dynamics

Rich and Unique Offering

“Insurance-in-a-box” approach for our Cloudified Digital

Platform

Unique Value Proposition Recognized

by Industry Analysts

Large and Global

Customer Base

Expansion Levers

Continue to Pursue Strategic

Acquisitions

Focused on Organic Growth

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Financials

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A Compelling Financial Profile

Strong, consistent double-digit

growth

Recurring revenue

Profit and margin expansion

Resilient balance sheet, robust cash

generation

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Revenue Growth Trend Supported by a Strong Customer Base

- Revenue from existing customers represents revenue from customers which existed in previous years, including M&A.- Revenue from M&A represents revenue for the first year of acquisition

Non-GAAP Revenues (USD Millions)

2018 2019 2020

$384.5

$325.7$290.3

2018-2020 Average Percentage

“Sticky” Revenue Model

86-88%Cross-selling,

up-selling to existing customers

7-11% New customers

1-6% M&A

Existing customers New customers M&A

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Steadily Increasing Customer Base Diversity

Growing our Customer Base

2018 2019 2020

Largest Customer as Percentage of Revenue

Top-10 Customers as Percentage of Revenue

5.8% 4.5% 4.0%

30.1% 28.5% 23.5%

450500

600

+

+

+

16

22%

31%23%

24%

1 2 3 4 and 5

71%

21%

8%

P&C L&A Other

1 Based on top 70% revenue. Tier 1, 2, 3, 4 and 5, represent Gross Written Premiums (GWP) of >$5bn, $1bn-$5bn, $250m-$1bn and <$250m, respectively.

2020 Revenue by Market, Geography and Tiers

By Market By Geography By Customer Tier1

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

49%

45%

6%

North America Europe * Row

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114.2135.4

157.5179.3

216.2

272290.3

325.7

384.5

463.5

2012 2013 2014 2015 2016 2017 2018 2019 2020 Mid-point 2021 Guidance

Non-GAAP Revenues (USD Millions)

Revenue Growth Achieved Year-over-Year

2021 revenue and year-over-year growth calculated based on 2021 midpoint of guidance dated August 4, 2021.

+16.3%

+13.8%

+6.7%

+20.6%

+25.8%

+12.2%

+18.6%

18.1%

20.5%

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$23

$40

$52

$68

$80

2017 2018 2019 2020 2021 Mid-Point Guidance

17.7%

16.0%

13.6%

8.5%

17.35%

2021 guidance per guidance dated August 4, 2021. Operating profit and margin calculated based on 2021 midpoint of guidance.

2021 Operating Profit and Margin GuidanceNon-GAAP Profit (USD millions)

19(1) Cash, deposits and short term equivalents(2) Non-GAAP

$176M

$(99M)5 installments to be

paid over next 5 years

DebtCash(1)

Dividend Payout

Policy of 40% of Non-GAAP Net Income

$20M Paid on May 11, 2021

for 2020

Dividend Policy

June 30, 2021

Free cashflow

$30.5M

Net Income

$30.0M

FCF/Net Income

101.9%

2018 - Q2 2021 Average(2)

Uses of cash prioritized to support future growth and shareholder value

• Internal investment-R&D, S&M, scalability

• External investment –strategic acquisitions

• Dividend

Capital Allocation Strategy Stimulates Growth and Shareholder Value

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Key Take-aways

• $40 billion insurance software market growth driven by industry disruptors and insurers replacing legacy systems1

• Solid track record of double-digit growth (17% 10-year CAGR)

• Robust and Sticky Recurring Revenue Model

• Profit and Margin expansion driven by economies of scale and offshore operations

• Globally diversified, broad business portfolio and customer base

1 Source: Gartner, Forecast: Enterprise IT Spending for the Insurance Market, Worldwide, 2018-2024, 2Q20 Update.

Questions?

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17.9%

© Copyright Sapiens International 2021

Thank you!

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Appendix

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Condensed Consolidated Non-GAAP Income Statements($ in thousands, except per share amount) Three Months ended June 30, Six Months ended June 30,

2021 (unaudited)

2020 (unaudited)

2021 (unaudited)

2020 (unaudited)

Revenue 115,036 93,063 225,258 183,597

Cost of Revenue 63,316 51,163 124,309 101,906

Gross Profit 51,720 41,900 100,949 81,691

Operating Expenses:

R&D, net 15,226 10,579 29,946 22,542

SM, G&A 16,699 14,538 32,208 27,752

Total Operating Expenses 31,925 25,117 62,154 50,294

Operating Income 19,795 16,783 38,795 31,397

Financial and other expenses, net 69 63 584 1,550

Taxes on income 3,738 3,347 7,249 5,992

Net Income 15,988 13,373 30,962 23,855

Attributable to non-controlling interest 13 33 80 103

Net income attributable to Sapiens’ shareholders 15,975 13,340 30,882 23,752

Basic earnings per share 0.29 0.27 0.56 0.47

Diluted earnings per share 0.29 0.26 0.56 0.46

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Summary of Non-GAAP Financial Information

($ in thousands, except per share amounts) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020

Revenues 115,036 110,222 102,936 97,968 93,063

Gross Profit 51,720 49,229 47,044 44,206 41,900

Gross Margin 45.0% 44.7% 45.7% 45.1% 45.0%

Operating Income 19,795 19,000 18,666 17,859 16,783

Operating Margin 17.2% 17.2% 18.1% 18.2% 18.0%

Net income to Sapiens’ Shareholders 15,975 14,908 14,461 13,746 13,340

Adjusted EBITDA 20,920 20,120 20,032 19,010 17,854

Adjusted EBITDA Margin 18.2% 18.3% 19.5% 19.4% 19.2%

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Adjusted Free Cash Flow

($ in thousands) Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020

Cash-flow from Operating Activities 26,845 11,755 21,030 16,705 14,761

Increase in capitalized software development costs (1,959) (1,632) (1,604) (1,506) (1,251)

Capital Expenditures (1,082) (821) (725) (963) (393)

Free cash-flow 23,804 9,302 18,701 14,236 13,117

Cash Payments Attributed to Acquisition-related costs(1)(2) - 1,280 2,363 242 1,562

Adjusted Free Cash-flow (non-GAAP) 23,804 10,582 21,064 14,478 14,679

(1) Included in cash-flow from operating activities (2) Acquisition-related payments pertain to payments on behalf of M&A agreements related to future performance targets and retention criteria, as well as third-party services, such as, tax, accounting and legal rendered until the acquisition date.