UBS Best of Israel Conference

London / New York October 2013

past Disclaimer

. This presentation was prepared by Ltd. (the “Company”) and is intended for the provision of information to institutional investors only. It is not an offer to buy or sell securities of the Company, nor an invitation to receive such offers. The information in the presentation is designed for convenience purposes only and is not a recommendation or an opinion, nor a substitute for the investor’s discretion. . The information provided in the presentation is merely a summary, and is not a substitute for inspection of the Company’s 2012 periodic report, current filings and financial statements and board of directors’ report as of June 30, 2013, as filed with the ISA through the Magna website. The Company does not warrant that the information is either complete or accurate, nor will bear any liability for any damage and/or losses which may result from any use of the information. . Various issues addressed in this presentation, which include forecasts, goals, estimates, assessments and other information pertaining to future events and/or matters, whose materialization is neither certain nor within the Company’s control, are forward-looking information, as defined in the Securities Law, 5728-1968, including in connection with income forecasts, the value of the Group’s holdings, costs of and profit from projects, the development and construction thereof, zoning plan changes, receipt of permits and the projects’ concepts. Forward-looking information is based solely on the Company’s subjective assessment, based on facts and figures concerning the current state of the Company’s business, and macro-economic facts and figures, all as are known to the Company on the date of preparation of this presentation. The Company does not undertake to update and/or change any such forecast and/or estimate to reflect events and/or circumstances occurring after the date of preparation of this presentation. The materialization or non-materialization of the forward-looking information will be affected, inter alia, by risk factors characterizing the Company’s business, as well as by developments in the general environment and outside factors affecting the Company’s business, such as third-party representations not materializing, delays in the receipt of permits, termination of contracts, a decline in the value of shares on the stock exchange, etc., which cannot be estimated in advance and are beyond the Company’s control. The Company’s results of operations may differ materially from the results estimated or implied from the aforesaid, inter alia due to a change in any one of the foregoing factors. . The information included in this presentation is similar to the information included in the Company’s reports and/or presentations released by the Company in the past and/or in the financial statements as of June 30, 2013, as released on Magna, and does constitute new information. In addition, some figures which are included in the presentation, are differently presented and/or edited and/or segmented. There are also figures which are included for the first time, as stated in the immediate report to which this presentation is annexed. . The terms “Real Estate FFO” and “weighted average cap-rate” relate to the Group’s income-producing real estate business only. The reader of the presentation is required to read such figures in conjunction with the board’s explanations in the board of directors’ report as of June 30, 2013, including the methods of calculation and the underlying assumptions thereof. . The financial figures in the presentation attributed to the extended standalone statement, are unaudited. This statement presents a summary of the Company’s statement data according to IFRS, apart from the Company’s investment in Granite HaCarmel, which is presented in the book value method instead of consolidation of its figures in the Company’s statements. . The Company’s estimations with respect to the growth figures are based on actual rental income, both from shopping mall and commercial center areas and from office and other space for lease, and in some cases including expansions performed at the relevant center, which are unaudited, non-GAAP figures, made in good faith and according to the past experience and professional knowledge accumulated by the Company. Such information is presented below for the sake of convenience only, but is not a substitute for information provided by the Company in its financial statements or in connection therewith, and is therefore not to be relied upon independently.

| 2 | Azrieli Group - Business Card

. The Company has been publicly traded since June 2010. . Azrieli Group’s shares are traded on the following indexes: 25, Tel Aviv 100 and Real Estate 15. . Azrieli Group’s stock is the only Israeli stock included in the EPRA index. . Current market capitalization - NIS 13.5 billion (1). . The Company owns leasable areas totaling 730,000 m2, with another 469,000 m2 under construction (on a consolidated basis). . The average occupancy rate in Israel is close to 100%. . More than 90% of the fair value (on a consolidated basis) of the income- producing real estate and properties under development relates to real estate located in Israel. . Fair value of the income-producing real estate and properties under development of NIS 15.5 billion. . Total shareholders’ equity (relating to the shareholders) - NIS 12 billion (2).

Azrieli Jerusalem Mall, Jerusalem

(1) As of September 22, 2013. | 3 | (2) As of June 30, 2013. Azrieli Group - Company Structure

Book value by assets; Solo extended (1)

Non Core others Granite Leumi card Leumi shares 1% 4% 6% 3% cash and cash equivalents 1%

Assets in the US 8% Assets in Israel - shopping malls 50% Assets in Israel - offices & others 27%

(1) As of June 30, 2013. | 4 | Azrieli Group - Real Estate Segments

Real Estate Activity (1)

Existing properties Projects under Income producing Offices and others - commercial development properties abroad GLA - 293,234 GLA - 257,561 GLA - 469,000 GLA - 178,712

. Azrieli Tel Aviv . Sarona Houston, Texas . Herzliya . Ramla . Galleria 90% . Jerusalem . Rishonim . Plaza 100% . Modi’in (offices & residential) . Azrieli Center Holon (83%) . Northchase 100% . Be’er Sheva . Ayalon – 2nd floor . One Riverway 33% . Givatayim . Kiryat Ata – phase B . Three Riverway 45% . Caesarea . Clalit Center Project Leeds, United Kingdom . Petach Tikva . Azrieli Extension Project . Southern House 100% (Yedioth Ahronot)

(1) GLA is consolidated. | 5 | Strategy

Mainly in Israel

Mainly income-producing real estate

Mainly shopping centers and offices

Mainly development

Long term holding and management Azrieli Givatayim Mall, Givatayim

| 6 | Malls and retail space in Israel

| 7 | Malls in Israel – Continued Growth in Turnover

. Continued growth in turnover over the last 10 years. . GDP per capita - $32,000 in 2012 versus $19,000 in 2002. . Private consumption up 35% in the last 5 years (2007-2012). . Annual population increase of c. 1.8% in the State of Israel over the last two years. . Unemployment rate kept at a low 6.3% (July 2013). . Increase in tourism: In 2012, 3.6 million tourists entered Israel, versus 2.1 million tourists in 2007 and 0.9 million tourists in 2002. . International fashion chains enter malls in Israel.

** Source: Bank of Israel, the Central Bureau of Statistics, CIA agency. | 8 | Malls in Israel – The connection between consumption and mall areas(1)

Retail space, Change in sqm in consumption thousands

5000 200 GLA in large centers (sqm) (2)

4500 Shopping centers +79% 180 Private consumption by households in the domestic market (3) 4000 Private consumption by households in the domestic market on apparel and footwear +62% 160

3500 140 3,050 3000 120 +61%

2500 100 2,261

2000 1,900 80

1500 60 1,060 1,200 940 1000 +28% 40

500 20

0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(1) Data source: CBS, Harel Insurace Macro Research Department and Czamanski Ben Shahar Research. (2) Centers over 2,500 sqm. | 9 | (3) In nominal prices. OCR(1) – Occupancy Cost Ratio in Israel

Low and Sustainable OCR Compared to Peers

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

(1) Excluding management fee. | 10 | All data as of December 31, 2012, apart from the Azrieli Group assets that are not included in the main assets disclosure. Azrieli Group Malls – Rent to Revenues Stable and Sustainable

NIS in millions, per year

6,000 10.9% 11.1% 10.7% 10.8% 11.9% 12.3% 11.9% 12.0% 12.2%

4,896 5,000 4,689 Turnover Rent 4,513

3,995 4,000 3,410 3,287 3,070 3,000 2,736 2,812

2,000

1,000 492 536 562 596 299 312 327 354 406

2004 2005 2006 2007 2008 2009 2010 2011 2012

| 11 | Major International Tenants – Getting Started in Azrieli Group’s Malls

The Home of the Flagship Stores in Israel

1st Store in st 1st Store in 1 Store in 1st Store in 1st Store in Israel Israel Israel Israel Israel

2nd Store in 1st Store in 1st Store in 2nd Store in Israel 1st Store in Israel Israel Israel Israel

| 12 | Office Space in Israel

| 13 | Offices in the Tel-Aviv Metropolitan – map of demand(1)

Demand area 1 – Tel Aviv Azrieli Center Sarona, Tel Aviv  Average occupancy rate of 95%  Average rent per sqm – NIS 90

Demand area 2 – Herzliya, , Raanana  Average occupancy rates of 90%-92%  Average rent per sqm – NIS 62-80

Demand area 3 – Petach Tikva, Holon, Rehovot, Netanya  Average occupancy rates of 85%-90%  Average rent per sqm – NIS 55-62

Azrieli Center, Tel Aviv

Herzliya Business Park, Herzliya

(1) Source: CBRE / M.A.N. Properties survey for Q2/2013. | 14 | Offices in Israel

. The occupancy of Class A buildings in Tel Aviv is close to 100%, with rent of NIS 100-130 per sqm.

Trends: . Increase in regulation and globalization – increase in demand by law firms, accountants. . Relocation of legal/accounting firms from old buildings and apartments to new and modern office buildings. . International companies setting up R&D and service centers in Israel. . Few completions of projects in Tel Aviv, over the next 2-3 years. . Large projects – only for strong and financially powerful players.

| 15 | Contract renewals at the Azrieli Center

Last 20 deals signed in Azrieli Center Area Price per sqm Property Renewal date Rate of increase (m2) (NIS per month) Tenant 1 555 4/2013 10.0% 110 Tenant 2 270 4/2013 5.7% 111 Tenant 3 1,430 4/2013 32.2% 115 Tenant 4 765 4/2013 9.4% 116 Tenant 5 800 5/2013 0.0% 107 Tenant 6 600 5/2013 16.2% 112 Tenant 7 380 5/2013 11.5% 126 Tenant 8 350 5/2013 2.9% 105 Tenant 9 358 6/2013 2.8% 110 Tenant 10 1,385 6/2013 10.9% 122 Tenant 11 480 7/2013 7.7% 112 Tenant 12 2,770 7/2013 5.3% 119 Tenant 13 1,520 7/2013 6.4% 100 Tenant 14 585 7/2013 0.0% 104 Tenant 15 672 8/2013 0.0% 94 Tenant 16 1,520 8/2013 7.4% 102 Tenant 17 1,385 9/2013 0.0% 111 Tenant 18 576 12/2013 8.0% 108 Tenant 19 6,435 1/2014 0.0% 126 Tenant 20 268 3/2014 8.2% 115

| 16 | Development and Acquisition Momentum

| 17 | Development Momentum Approx. 469,000 sqm GLA(1); Total investment of NIS 5.2 - 5.5 billion

Azrieli Kiryat Ata (phase B) Approx. 4,000 Azrieli Center Sarona, Tel Aviv Approx. 121,500 Azrieli (additional floor) Approx. 9,500

Yedioth Ahronot project Azrieli Rishonim Tel Aviv Approx. 48,000 Approx. 69,000

Azrieli Ramla Approx. 22,000

Clalit Center project Tel Aviv Approx. 75,000 Azrieli Center Holon Approx. 120,000

(1) GLA consolidated. | 18 | Projects under Development - Future Growth Engine

Book value Estimated cost % Estimated date Name of property Use GLA 30.06.2013 to completion ownership of completion (NIS in millions) of project Azrieli Center 100% Retail and Offices 121,500 Year-end 2016 648 846-891 Sarona, Tel Aviv Azrieli Kiryat Ata - 100% Offices and retail 4,000 Q4 2013 5 27-37 phase B Azrieli Ayalon Mall - 100% Retail 9,500 March 2015 6 120-150 additional floor Azrieli Rishonim 100% Retail and offices 48,000 2016 (2) 122 457-487

Phase A1 –completed 115,000 Azrieli Center Holon (1) 83% Retail and offices Phase A2 – 2014 420 217-252 5,000 Phase B – 2016 Azrieli Ramla Mall 100% Retail 22,000 Beginning of 2015 174 180-200

Retail, offices and Clalit Center, Tel Aviv 100% 75,000 Not yet determined 121 830-930 residential Azrieli Extension Retail, offices and 100% 69,000 Not yet determined 109 890-910 Project, Tel Aviv residential Total 469,000 1,605 3,567– 3,857 Total book value plus estimated cost to completion 5,172– 5,462

(1) Figures are for 100%. | 19 | (2) Subject to approval of zoning plan. Projects Under Construction

Projected Average Yield on Cost of 11%-12%

Azrieli Center Holon Azrieli Center Sarona . Ownership: 83% . Ownership: 100% . Gross Leasable Area: 120,000 sqm . Gross Leasable Area: 121,500 sqm . Status: phase A1 completed. Under construction. . Status: Excavation commenced. . Completion scheduled for 2013-2016 . Completion scheduled for 2016

| 20 | Projects Under Construction

Projected Average Yield on Cost of 11%-12%

Azrieli Ayalon Mall -additional floor Azrieli Ramla Mall Azrieli Rishonim . Ownership: 100% . Ownership: 100% . Ownership: 100% . Gross Leasable Area: 9,500 sqm . Gross Leasable Area: 22,000 sqm . Gross Leasable Area: 48,000 sqm . Status: Under construction . Status: Under construction . Status: Excavation commenced. . Completion scheduled for March 2015 . Completion scheduled for 2015 . Completion scheduled for 2016.

| 21 | Agreement signed for the purchase of land adjacent to the Azrieli Center in Tel Aviv

. Ownership – 100%. . 1,000 parking spaces. . Land of approx. 8,400 sqm in the center of Tel Aviv. . Cost of land – NIS 374 million. . Gross commercial, office and residential area of 69,000 sqm . Estimated cost to completion – NIS 600 million.  Approx. 29,000 sqm of office space . Estimated date of handing over of the land – 2015-2016.  Approx. 10,000 sqm of retail space  Approx. 30,000 sqm of residences (370 apartments)

| 22 | Purchase of Land in Tel Aviv from Clalit Health Services

. Ownership – 100%. . 1,500 parking spaces. . Land of approx. 10,000 sqm in the center of Tel Aviv. . Cost of land – NIS 240 million. . Gross commercial, office and residential area of 75,000 sqm . Estimated cost to completion – NIS 700 million.  Approx. 48,000 sqm of office space . Estimated date of handing over of the land – 2014-2015.  Approx. 10,000 sqm of retail space  Approx. 17,000 sqm of residences (215 apartments)

| 23 | Azrieli Group – Proven value creation capability over time

Modi’in – completed in June 2008 Haifa – acquired in February 2010

1,600 700 1,393 1,400 599 600 1,200 500 1,000 800 624 400 338 600 300 400 200 200 100 Cost 6/2008 (2) Current Value (1) Cost 2/2010 (2) Current Value (1) Akko – completed in September 2011 Givatayim – acquired in April 2009

350 1,300 1,221 300 286 1,200 1,100 250 1,000 200 158 900 852 150 800 700 100 600 50 500 400 (2) Cost 8/2011 Current Value (1) Cost 4/2009 (2) Current Value (1)

(1) Current Value = Valuation as of June 30, 2013 + NOI since the acquisition. | 24 | (2) Cost of acquisition/construction = including investments over the years + taxes. Income-producing Properties Overseas

| 25 | Azrieli Group – Income producing properties overseas

. Dispersion of 10%-15% of the investment property value in Western countries with a high investment grade. Galleria Tower 2, Houston . Building a property portfolio and active management until full potential value of the property is reached. . Mainly office buildings in stable but growing areas. . High-quality, Class A and up properties, which do not require massive capex investment over the coming years. . Relatively high cap rates. . Financing through non-recourse loans, at 60-65% of the cost of the property. . 2-4% margin between the cap rate and the cost of financing. . High-quality tenants with long-term contracts with no early termination options.

Plaza at Enclave, Houston 3 RiverWay, Houston Galleria Financial Center, Houston

| 26 | Maintaining Financial Strength despite Massive Development and Acquisitions

Investment in real estate Equity to Balance sheet ratio (1) (NIS in million) IPO Azrieli Center Sarona, Tel Aviv NIS 2.5 Billion 2,000 65% 70% 60% 62% 62% 1,800 53% 54% 60% 1,600 1,400 50%

1,200 40% 1,000 800 1,733 30% 600 1,058 20% 400 837 617 10% 200 467 487 0 0% 2008 2009 2010 2011 2012 Q1+Q2 2013 Investment in real estate Equity to Balance sheet ratio

Azrieli Ramla Mall, Ramla Galleria Tower 2, Houston Azrieli Haifa Mall, Haifa Azrieli Givatayim Mall, Givatayim

(1) Solo extended. | 27 | Financial Highlights

| 28 | Portfolio Summary – H1 2013

Same Portfolio Assets Fair NOI Growth Property NOI NIS in millions Leased Value (%) Growth (%) (%)

Shopping Centers in Israel ~ 100% 9,798 2% 2%

Offices and others in Israel ~ 100% 5,153 7% 6% Assets in the United 89% 1,528 2% 2% States Group ~ 99% 16,479 3% 3%

| 29 | Strong NOI Growth Over Indexation

7.0% 6.0% 6.0% 5.6%

5.0% 2.5% 2.6% 3.8% 4.0%

2.8% 3.0% 1.9%

2.0% 1.3% 3.5% 3.0% 1.0% 1.9% 1.5%

0.0% 2010 2011 2012 H1 - 2013 Indexation (CPI) like for like growth over Indexation

| 30 | Continuous Growth in NOI and FFO (NIS in millions)

Quarterly NOI Annual NOI 1,200 1,087 300 277 277 982 269 275 275 1,000 103 882 48 250 27 25 26 26 25 785 800 21 282 200 22 272 70 71 73 74 74 635 247 600 550 232 150 17 22 198 100 400 158 702 174 177 177 177 177 614 662 50 200 532 370 420 0 0

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 2007 2008 2009 2010 2011 2012 Quarterly Real Estate FFO Annual Real Estate FFO 800 188 187 716 700 646 186 600 573 184 182 500 182 181 180 180 400 180 300 178 200 176 100 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 2010 2011 2012

● Shopping malls and commercial ● Offices and others | 31 | ● Assets in the US. Funds From Operations

Current real estate segment FFO – NIS 748 million

NIS in millions Q2 2013 Property Rental Income 352 Cost of Rental Revenues (75) Net Operating Income (NOI) 277 Overhead (27) Depreciation and Phantom 5 EBIT 255 Net Interest Expenses (55) Currency Derivatives 2 Other Non Cash Financing Expenses 12 Earnings before Tax 214 Tax (26) Minority Interest (1) FFO (real estate) – Q2/2013 187

Azrieli Group market cap(1) 13,485 Less: cash & cash equivalents(2) (127) Less: real holdings (2,685) Less: investment in projects under development (2) (1,605) Market cap attributed to real estate operations only 9,068

(1) As of September 22, 2013. | 32 | (2) As of June 30, 2013. Average Cap Rate

Portfolio weighted average cap rate of 7.6% NIS in millions Investment properties as of 30.06.2013 (extended standalone) 16,480 Net of: properties under development, vacant space and building rights (1,633) Total income-producing properties 14,847

Actual NOI for Q2/2013 277 Additions to future Q2/2013 NOI 6 Adjusted NOI for Q2/2013 283 Annual pro-forma NOI 1,130 Portfolio weighted average cap-rate 7.6%

30 June 2013 NIS in millions Range Weighted Average Shopping centers in Israel 7.1% - 8.6% 7.6% Offices and others in Israel 7.6% - 8.8% 7.8% Assets in the United States 6.3% - 9.3% 6.8% Group 6.3% - 9.3% 7.6%

| 33 | Azrieli Portfolio – Revaluations Driven by NOI Growth and Yield compression 30.06.2013 Vs. 30.06.2012

400 340 Rent Effect Yield Effect 350

300

250 179 200 145 150 112 83 100 12 161 105 50 100 62 40 21 Group Shopping centers in Offices and Others in Assets in the United Israel Israel States

Yield Effect 53% 73% 10% 75%

Rent Effect 47% 27% 90% 25%

| 34 | Azrieli Group - Valuation

EPRA NAV and NNNAV (1)

Growth Per Share Data 30.06.2013 30.06.2012 (%) EPRA NAV 119 110 8.2% EPRA NNNAV 97 95 2.1%

NAV: NIS 11.2 per Share Value Creation

119 Recurring 5.9 EPS 110 (2.2) 1.5 Yield Effect +NIS+ NIS 11 3.2.2 107.8 Asset 2.8 revaluation 1.3 Rent Effect

2.5 Other Effects

June Distribution June 2012 Proforma for June 2012 2013 2013 Distribution 2013

(1) Excluding the projected profit component from projects under development. | 35 | Debt Structure and Rating (1) (NIS in millions)

Principal Share of Financial stability amount total loan . Low leverage - net financial liabilities to balance sheet: 24%. Up to 1 year 1,952 (2) 41% . Shareholders’ equity to balance sheet: 62%. 1 to 4 years 2,062 43% . Non-mortgaged property value of approx. NIS 10.8 billion. 5 to 10 years 759 16% . Bank loans and institutional bodies: NIS 3.3 billion. . Bonds & commercial paper: NIS 1.5 billion. ------. Weighted average duration: 2.27 years. Total 30.06.2013 4,774 100%

Rating Principal Average amount interest rate . Azrieli Group bonds: AA / Stable (S&P Maalot). Linked to CPI 3,153 (2) 5.03% Aa2 / Stable (Moody’s Midroog). . Canit Hashalom bonds: Aa2 / Stable (Moody’s Midroog). In NIS 710 2.19% Linked to $ 888 5.18% 6.00% Weighted Average Interest Rate 5.50% Linked to £ 23 2.225% 5.00% 5.00% 5.00% 4.94% 4.91% 4.82% 4.89% 4.89% 4.78% 4.80% 5.00% 4.62% ------4.50%

(3) 4.00% 3.67% Total 30.06.2013 4,774 4.62% 3.50% Upside 3.00% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013

(1) Based on 30.06.2013 extended standalone financial statements. (2) Including a loan of approx. NIS 889 million to finance the Azrieli Center, with 6% interest, maturing at the end of August 2013, which was refinanced | 36 | shortly after the release of the report through loans with interest rates of 0.8%-1.2%. (3) Proforma after the refinance of Azrieli Center’s loan. Conclusion

Israel  Continued improvement of existing properties, and promotion of building plans and expansions.

 Progress in the projects under construction.

 Purchase of additional land for further development projects.

 Acquisition of additional income-producing properties. Overseas  Investment of 10%-15% of the investment property value in Western countries with a high investment grade.

 Acquisitions within an investment range of $100-300 million per property.

 Improvement of the existing portfolio. Other  Ongoing examination of holdings outside the core business of the Group (i.e., non-real estate).

Azrieli Givatayim Mall, Givatayim

| 37 | Appendix | Key data of the share

Listed since June, 7 2010 Outstanding shares (millions) 121.3 52W High (NIS) 113.4 52W Low (NIS) 72.5 Share price (as of September 22, 2013) 111.3 Market capitalization (NIS in millions) 13,498 Official Market TASE Average turnover per day 365 days (NIS 9.0 in millions) Indices TA 25, TA 100, TA Real-Estate15, EPRA Ticker AZRT IT

| 38 | Appendix | Contact

Moran Goder, Head of Investor Relations

Office: +972-3-6081310 Mobile: +972-54-5608151 Fax: +972-3-6094518 [email protected] [email protected]

Website: http://www.azrieli.com

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