AUDITORS' REPORT. To the Shareholders of Kafrit Industries (1993) LTD.

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1 קוסט פורר גבאי את קסירר AUDITORS' REPORT רח' עמינדב 3, תל-אביב To the holders of Kafrit Industries (1993) LTD. טל פקס Regarding the Audit of Components of Internal Control over Financial Reporting Pursuant to Section 9b(c) to the Israeli Securities Regulations (Periodic and Immediate Reports), 1970 We have audited the components of internal control over financial reporting of Kafrit Industries (1993) Ltd. and its subsidiaries (collectively, "the Company") as of, Control components were determined as explained in the following paragraph. The Company's board of directors and management are responsible for maintaining effective internal control over financial reporting, and for their assessment of the effectiveness of the components of internal control over financial reporting included in the accompanying periodic report for said date. Our responsibility is to express an opinion on the Company's components of internal control over financial reporting based on our audit. We did not audit the effectiveness of the components of internal control over financial reporting of certain subsidiaries, whose assets and revenues constitute approximately 17% and 16% of the related totals in the consolidated financial statements as of, 2012 and for the year then ended, respectively. The effectiveness of the components of internal control over financial reporting of those companies were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the effectiveness of the components of internal control over financial reporting of those companies, is based on the reports of the other auditors. The components of internal control over financial reporting audited by us were determined in conformity with Auditing Standard 104 of the Institute of Certified Public Accountants in Israel, "Audit of Components of Internal Control over Financial Reporting" ("Auditing Standard 104"). These components consist of: (1) entity level controls, including financial reporting preparation and close process controls and information technology general controls ("ITGCs"); (2) controls over revenue-; (3) controls over purchasing and inventory-; (4) controls over payroll (collectively, "the audited control components"). We conducted our audit in accordance with Auditing Standard 104. That Standard requires that we plan and perform the audit to identify the audited control components and obtain reasonable assurance about whether these control components have been effectively maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, identifying the audited control components, assessing the risk that a material weakness exists regarding the audited control components and testing and evaluating the design and operating effectiveness of the audited control components based on the assessed risk. Our audit of these control components also included performing such other procedures as we considered necessary in the circumstances. Our audit only addressed the audited control components, as opposed to internal control over all the material processes in connection with financial reporting and therefore, our opinion addresses solely the audited control components. Moreover, our audit did not address any reciprocal effects between the audited control components and unaudited ones and accordingly, our opinion does not take into account any such possible effects. We believe that our audit and the reports of the other auditors provide a reasonable basis for our opinion within the context described above. Because of its inherent limitations, internal control over financial reporting as a whole, and specifically the components therein, may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, based on our audit and the reports of other auditors, the Company effectively maintained, in all material respects, the audited control components as of, We have also audited, in accordance with generally accepted auditing standards in Israel, the consolidated financial statements of the Company as of, 2012 and 2011 and for each of the three years in the period ended, 2012 and our report dated March 20, 2013 expressed an unqualified opinion thereon based on our audit and the reports of other auditors. Tel-Aviv, Israel March 20,2013 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global

2 קוסט פורר גבאי את קסירר רח' עמינדב 3, תל-אביב טל פקס AUDITORS' REPORT To the holders of Kafrit Industries (1993) LTD. We have audited the accompanying consolidated statements of financial position of Kafrit Industries (1993) Ltd. ("the Company") as of, 2012 and 2011, and the related consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for each of the three years in the period ended, These financial statements are the responsibility of the Company's board of directors and management. Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain subsidiaries, whose assets constitute approximately 24% and 25% of total consolidated assets as of, 2012 and 2011, respectively, and whose revenues constitute approximately 26%, 20% and 7% of total consolidated revenues for the years ended, 2012, 2011 and 2010, respectively. The financial statements of those companies were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to amounts included for those companies, is based on the reports of the other auditors. We conducted our audits in accordance with generally accepted auditing standards in Israel, including those prescribed by the Auditor's Regulations (Auditor's Mode of Performance), Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the board of directors and management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion. In our opinion, based on our audits and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of the Company and its subsidiaries as of, 2012 and 2011, and the results of their operations, changes in their equity and cash flows for each of the three years in the period ended, 2012, in conformity with International Financial Reporting Standards ("IFRS") and with the provisions of the Israeli Securities Regulations (Annual Financial Statements), We have also audited, in accordance with Auditing Standard 104 of the Institute of Certified Public Accountants in Israel, "Audit of Components of Internal Control over Financial Reporting", the Company's components of internal control over financial reporting as of, 2012, and our report dated March 20, 2013 expressed an unqualified opinion on the effective maintenance of those components. Tel-Aviv, Israel March 20,2013 KOST FORER GABBAY & KASIERER A Member of Ernst & Young Global

3 Consolidated Statements of Financial Position CURRENT ASSETS : Cash and cash equivalents 9,248 7,681 Trade receivables 110, ,577 Other accounts receivable 11,233 12,440 Inventories 101, ,564 Purchased call option over non-controlling interests 7,944 - NON -CURRENT ASSETS: 240, ,262 Receivables 1,322 1,528 Investment in available-for-sale financial asset 1,005 1,482 Long-term prepaid expenses 790 1,160 Fixed assets 78,963 80,311 Goodwill 14,042 15,585 Intangible assets 5,765 6,129 Deferred taxes 1,635 1, , , , ,249

4 Consolidated Statements of Financial Position CURRENT LIABILITIES : Credit from banks 109, ,573 Trade payables 48,323 50,176 Other accounts payable 27,621 21,342 NON -CURRENT LIABILITIES: 184, ,091 Loans from banks and others 35,475 36,183 Other non-current liabilities 5, Employee benefit liabilities 1,652 1,431 Deferred taxes 2,934 1,293 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT: 45,721 39,246 capital 20,816 20,814 premium 39,765 39,720 Treasury shares ( 619) (619) reserves 460 2,227 reserve from transactions with non-controlling interests 5,364-41,073 36, ,859 99,001 Non-controlling interests 6,507 21,911 Equity 113, , , ,249 March 20, 2013 Date of approval of the Financial Statements Ram Belinkov Avi Zalcman Moody Pruss Chairman of the Board Chief Executive Officer Chief Financial Officer

5 Consolidated Statements of Profit or Loss and Other Comprehensive Income Year ended (except per share data) Revenues from sales 690, , ,785 Cost of sales 584, , ,590 Gross profit 105,572 96,872 84,195 Selling and marketing expenses 45,440 41,559 38,474 General and administrative expenses 29,203 26,171 27,554 Other income (expenses) 1,537 ( 7) (28) Operating income 32,466 29,135 18,139 Other expenses ( 387) ( 87) (325) Finance income 7,487 8,898 15,939 Finance costs 17,854 19,806 14,097 Income before taxes on income 21,712 18,140 19,656 Taxes on income 8,623 3,944 4,570 Income from continuing operations 13,089 14,196 15,086 Income (Loss) from discontinued operations, net (6) Net income 13,089 14,666 15,080 Other comprehensive income (loss) (after tax): currency ( 715) 7,439 (8,370) comprehensive income 12,374 22,105 6,710 Net income attributable to: Equity holders of the parent 8,201 13,063 14,726 Non-controlling interests 4,888 1, comprehensive income attributable to: 13,089 14,666 15,080 Equity holders of the parent 6,431 18,408 6,814 Non-controlling interests 5,943 3,697 (104) Basic and diluted net per share attributable to equity holders of the parent (in NIS) : 12,374 22,105 6,710 Earnings from continuing operations Earnings from discontinued operations, net Net

6 Consolidated Statements of Changes in Equity Premium Attributable to equity holders of the parent Non-controlling interests Treasury s reserve for share-based payment transactions Equity Balance as of January 1, ,793 39,391 ( 619) 416 4,546 16,545 81, ,465 18,318 99,390 Net income ,726 14, ,080 O ther comprehensive loss ( 7,912) - ( 7,912) ( 458) - ( 458) (8,370) comprehensive income (loss) ( 7,912) 14,726 6,814 ( 458) 354 ( 104) 6,710 Dividend to the shareholders of the parent ( 3,987) ( 3,987) (3,987) Cost of share-based payment Balance as of, ,793 39,391 ( 619) 461 ( 3,366) 27,284 83, ,819 18, ,158

7 Consolidated Statements of Changes in Equity Premium Attributable to equity holders of the parent Non-controlling interests Treasury s reserve for share-based payment transactions Equity Balance as of January 1, ,793 39,391 ( 619) 461 ( 3,366) 27,284 83, ,819 18, ,158 Net income ,063 13,063-1,603 1,603 14,666 O ther comprehensive income ,345-5,345 2,094-2,094 7,439 comprehensive income ,345 13,063 18,408 2,094 1,603 3,697 22,105 Dividend to the shareholders of the parent ( 3,488) ( 3,488) (3,488) Cost of share-based payment Realization of options to employees ( 308) Expiration of options to employees ( 42) Balance as of, ,814 39,720 ( 619) 248 1,979 36,859 99,001 2,489 19,422 21, ,912

8 Consolidated Statements of Changes in Equity Premium Attributable to equity holders of the parent Non-controlling interests Treasury s reserve for share-based payment transactions reserve from transactions with noncontrolling interests Equity Balance as of January 1, ,814 39,720 ( 619) 248 1,979-36,859 99,001 2,489 19,422 21, ,912 Net income ,201 8,201-4,888 4,888 13,089 O ther comprehensive income (loss) ( 1,770) - - ( 1,770) 1,055-1,055 (715) comprehensive income (loss) ( 1,770) - 8,201 6,431 1,055 4,888 5,943 12,374 Dividend to the shareholders of the parent ( 3,987) ( 3,987) (3,987) Cost of share-based payment Acquisition of non-controlling interests ,364-5,364 ( 3,667) ( 17,680) ( 21,347) (15,983) Realization of options to employees ( 47) Balance as of, ,816 39,765 ( 619) ,364 41, ,859 ( 123) 6,630 6, ,366

9 Consolidated Statements of Cash Flows Cash flows from operating activities : Year ended Net income 13,089 14,666 15,080 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Adjustments to profit or loss items: Depreciation and amortization 13,398 12,847 13,776 Cancellation of loss from impairment of fixed assets - - (17) Gain from sale of fixed assets and sale of land use-right ( 1,720) ( 88) (451) Decrease (Increase) in long-term prepaid expenses ( 788) Cost of share-based payment Revaluation of long-term loans granted - ( 126) 138 Revaluation of long-term liabilities to banks and others (680) Impairment and Realization of available-for-sale financial assets Taxes on income 8,623 3,944 4,570 Change in employee benefit liabilities (611) Increase in value of deposits - - (55) Revaluation of purchased call option over non-controlling interests Loss (Income) from financial instruments transactions, net - 2,507 (5,967) Interest expenses, net 7,676 8,454 6,095 Changes in assets and liabilities items: 28,308 28,169 17,192 Increase in trade receivables ( 9,520) ( 7,931) (9,057) Decrease (Increase) in other accounts receivable 1,006 ( 2,780) (2,552) Decrease (Increase) in inventories 10,119 ( 16,328) (18,234) Increase (Decrease) in trade payables ( 1,947) 3,601 17,733 Increase (Decrease) in other accounts payable ( 332) 2,192 1,840 Change in related parties accounts - ( 24) (165) Cash paid and received during the year for: ( 674) ( 21,270) (10,435) Interest paid ( 7,864) ( 8,442) (6,073) Interest received Taxes paid ( 5,541) ( 6,091) (7,011) Taxes received ( 12,759) ( 13,721) (13,076) Net cash provided by operating activities 27,964 7,844 8,761

10 Consolidated Statements of Cash Flows Cash flows from investing activities: Year ended Consideration received (paid) in respect of transactions in financial instruments derivatives, net - ( 2,507) 7,713 Repayment of a contingent consideration liability in business combinations - ( 4,950) - Purchase of fixed assets ( 12,197) ( 18,682) (15,805) Purchase of intangible assets ( 1,181) ( 472) (225) Investment grants received Proceeds from sale of fixed assets and sale of land use-right 6, Proceeds from realization of deposits - - 3,177 Collection (Grant) of long-term loans, net ( 158) 217 (108) Decrease (Increase) in other long-term loan and receivable, net - 5,931 (1,798) Net cash used in investing activities ( 6,736) ( 20,218) (6,073) Cash flows from financing activities : Dividend paid to the shareholders of the parent ( 3,987) ( 3,488) (3,987) Repayment of finance lease liabilities ( 827) ( 878) (2,332) Receipt of long-term loans 11,599 9,989 10,502 Repayment of long-term loans ( 7,881) ( 5,566) (5,436) Acquisition of non-controlling interests ( 15,122) - - Receipt (Repayment) of short-term credit from banks, net ( 3,312) 16,984 (7,180) Net cash provided by (used in) financing activities ( 19,530) 17,041 (8,433) Exchange differences on balances of cash and cash equivalents ( 131) 478 (308) Increase (Decrease) in cash and cash equivalents 1,567 5,145 (6,053) Cash and cash equivalents at the beginning of the year 7,681 2,536 8,589 Cash and cash equivalents at the end of the year 9,248 7,681 2,536

11 Consolidated Statements of Cash Flows Year ended ( a) Significant non -cash transaction: Purchase of fixed assets under finance lease ( 29) - - Purchased call option over non-controlling interests 8, Accrued liability to the shareholders of non-controlling interests ( 9,157) - - ( 889) - -

MEITAV DASH INVESTMENTS LTD. CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 INDEX

MEITAV DASH INVESTMENTS LTD. CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 INDEX 74 CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 INDEX Page Auditors' Report - Internal Control over Financial Reporting 2-3 Auditors' Report 4 Consolidated Statements of Financial Position