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www.sapiens.com

Investor Conference Roni Al-Dor, CEO

TASE February 26, 2015

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Certain statements made in this presentation may be 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, 2013 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

Safe Harbor Statement

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2014

Summary

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We Achieved our Targets

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16.3% Revenue Growth

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21.4% increase in

Operating Profit

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Maintained over 130 customers

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Deployed 10 new systems

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Released new versions of all our products

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30% increase in our sales team

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Successful merger with KPI

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Strengthened Sapiens’ brand

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12 % increase in the

number of employees

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Blue-Chip Global Customer-Base

North America UK Europe APAC

2014 Revenue Contribution

32% 22% 36% 10%

Bulgaria

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What Do We Do?

Provide core software solutions for insurance and financial services companies

Core software policy administration solutions

Innovative platform for business decisions

For insurance & financial services customers, globally

Retail banks

Investment banks

Mortgage banks

Technology Based

Solutions

Insurance Software

Reinsurance Property &

Casualty

Retirement Life, Pension &

Annuities

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The Insurance Market

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The Insurance Industry

Source: Market size data per Celent. March 2014

Big Market

Potential

$4,300,000,000,000 gross written premium (GWP)

11,000 insurance companies globally

IT-related Investment

$170B in 2015 Life - $90B; P&C - $80B

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The Insurance Industry by the Numbers

Source: Market size data per Celent. March 2014

Global IT Spending

External Software and IT

Spending Trends

Expected to increase by 9%

$162.1B => $176.7B 2014 2016

Expected to increase by 13%

$65B => $73B 2014 2016

Insurance companies shift IT budget

from internal to external vendors

Sapiens Today

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Insurance Core Systems

Agent Portal

BI Reporting BI Repository

Document Management & Workflow/BPM Distribution

Management

Underwriter Workbench

Rating Engine

CRM Customer

Portal

Core Claims System

Reinsurance Management

Billing

Core Policy Admin System

General Ledger

Document Creation

Unique Comp.

Distribution Management

BI Reporting BI Repository

Disbursement

Sapiens Offering

Potential Expansion

Agent Portal

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Current Sapiens Portfolio

Life, Annuities, Pension and Retirement

Property & Casualty and Reinsurance

Decision Management Technology

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Sapiens ALIS

• Major release: ALIS 6.5

• Value-add roadmap: innovation, digital, UX efficiency

New logos: Assurant preneed Altshuler Shaham

Wesleyan, our first ALIS 6.5 go-live

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Sapiens Closed Books

Wesleyan closed books go-live: first old-co/new-co

Growing interest in closed books

LV - long term, binding relationship

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Sapiens Topaz

Clal Pension in production early this year

Porting from AS400 to open system (Linux)

60% of Israeli pensions (Menorah and Clal) are managed with Sapiens

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Sapiens Retirement

Next generation retirement services product to the U.S. market

New innovative offering in a legacy market

First go-live in a phased approach

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Sapiens DECISION

World’s largest organizations are adopting DECISION as their strategic decision management platform

KPI acquisition: Sapiens now offers a holistic, end-to-end decision management solution

Penetrated 7 of the largest financial services firms in the world

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Sapiens IDIT

Major release 12.1, new product core release

4 customers went live in 2014

Health market: collaboration with design partners

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Sapiens Reinsurance

Major functional upgrade: The GL accounts module

New win: West Bend (USA), Hollard

Go-live with Hollard in South Africa

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Sapiens Offerings P

RO

DU

CTS

Sapiens ALIS

Sapiens Retirement

Sapiens IDIT

Sapiens Reinsurance

Sapiens DECISION

Sapiens eMerge

Sapiens TOPAZ

SERV

ICES

Training Migration

Product Upgrades

Project Implementation

Consulting Hosting

Support Services

User Acceptance Testing

Sapiens Closed Books

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Focused Sales Organization

Product

Support

Customer

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Sales Regional Managers U

SA

Ben

elu

x,

Fran

ce

Isra

el

APA

C

Glo

bal

Uk ,N

ord

ic SA

Steve Rooney Global Sales DECISION

2014

Raj Ghuman Regional Manager UK & Nordics

1995

Ronald Karam Regional Manager NA

2007

Henry Ainouze Regional Manager Benelux/France

2011

Wayne Te Paa Regional Manager APAC

2014 Tal Sharon Regional Manager Israel

2012

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Marketing Activities

Client Conference

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Rebuilding Brand Presence

2 Product Videos Enhanced Digital Media Presence

New Brochures

and Infographics

New Blog:

Sapiens Spotlight

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Our Growth Strategy

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Our Vision

To become a leading provider of innovative software solutions for the global Financial Services market, with a focus on Insurance

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2 3

4

5

1

Sapiens – Continue Our Growth

Pursue strategic acquisitions

Acquire new customers

Enhance portfolio through innovative technologies

Expand into new markets

Grow with existing clients

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2015 Main Objectives

Growth

Profitability

Continue revenue growth

Improve operating margins

M&A Complementary solutions and customer base

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THANK YOU

Financials

Roni Giladi, CFO

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52.2 69.9

114.2 135.4

157.5 27.8

2010 2011 2012 2013 2014

Strong Annual Revenue Growth

Non-GAAP in USD million

1 Revenues of $98.1mm in 2011 pro-forma for the FIS and IDIT acquisitions.

98.1

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Annual Revenue by Geography

25.9

21.9

12.3

26.7

11.2

35.6

20.6 22.4 23.6

12.3

44.2

30.9

24.9 23.0

12.4

49.6

35.0

28.4 28.8

15.7

NA UK EU IL APAC

2011

2012

2013

2014

Consistent Revenue Growth in NA and Europe

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32%

22% 18%

18%

10%

US

UK

Europe

IL

APAC

27%

22%

13%

27%

11%

Annual Revenue by Geography

2011 2014

Revenues of $98.1mm in 2011 pro-forma for the FIS and IDIT acquisitions.

$98.1mm $157.5mm

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Q4 and Annual Highlights – Non-GAAP

Annual Q4

2013 2014 2013 2014

135.4 157.5 36.2 41.8 Revenue

55.8 64.2 14.9 17.5 Gross Profit

41.2% 40.8% 41.0% 41.8% Gross Margin

14.0 17.0 3.8 5.0 Operational Profit

10.4% 10.8% 10.4% 11.9% Operational Margin

14.0 16.0 3.4 4.9 Net Income

10.4% 10.2% 9.4% 11.8%

0.33 0.33 0.07 0.10 Diluted EPS

42,316 48,637 45,487 49,057 Diluted Weighted Average Number of Shares

(in USD million except per share amount) Outstanding Shares: 47,679 )as of December 31 , 2014(

* The Company defines Adjusted EBITDA as net Profit, adjusted for stock-based compensation expense, depreciation and amortization, capitalized

internal-use software development costs, Amortization of internal-use software development costs interest expense, provision for income taxes and other income (expenses).

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Key Highlights

(in USD million)

December 31, 2013 December 31, 2014

70.3 47.4 Cash and cash equivalents

33.1 Marketable securities

0 0 Debt

23.7 28.5 Accounts Receivable

59 days 61 days DSO

17.3 21.6 Net cash provided by operating activities

(5.4) (6.1) Net cash used for capitalization of R&D

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2015 Guidance

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Revenues – Continue our Growth

1 Revenues of $98.1mm in 2011 pro-forma for the FIS and IDIT acquisitions 2 Non-GAAP revenues. 2015 guidance per Sapiens press releases dated February 25 2015

52.2

69.9

70.3

114.2

157.5

52.2

98.1

114.2

135.4

157.5

174-178

2010 2011 2012 2013 2014 2015 Guidance

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Currency Impact on Revenue

157.5

174-178

185

2014 2015

Guidance

Currency Percentage

$ 32%

£ 22%

€ 18%

₪ 18%

¥ 7%

Other 3%

2014 Revenue Split

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Revenues

Exchange Rates

Pipeline

Long Sales Cycle

Market Growth

Projects Delays

• Strong pipeline for all our products

• Long sales cycle: 9-24 months

• The insurance market is growing and investment in IT is growing

• Delays in customer decision making

• Negative impact of currency on revenues

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3.4 3.3 3.6 3.8 3.7 4.0 4.4

5.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Consistent Operational Profit

Quarterly Non-GAAP Operating Profit ($mm)

Non-GAAP operating profit excludes stock-based compensation, amortization of intangibles, capitalization and amortization of software, and valuation adjustment on deferred revenue.

2013 2014

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-2.41% -2.84% -3.46%

-14.02%

-2.70%

1.91%

7.76%

14.29%

15.90%

13.19% 13.29%

10.38% 10.80%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Operational Margin – Historical Perspective

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Operational Profit – Past and Future

2012-13

Additional R&D Investments

2014

Additional Sales Investments

2015

Target - Improving Operating Profit

2011

Merger with FIS and IDIT

Projects with Low Profitability

Projects with Low Profitability

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Operational Margin Targets

10.4%

10.8%

12%-13%

2013 2014 2015Guidance

10%

10.4%

10.9%

11.9%

Q1 2014 Q2 2014 Q3 2014 Q4 2014

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Increase Licenses

DECISION Division

Product Profitability

Efficiency and Cost Savings

Scale

• Move from loss to break-even

• Sell more of what we have • Products are more mature

• Offshore capabilities

• Efficiency of scale

• Internal R&D, Funded R&D

Improving Profitability

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Continue to Search for M&A Opportunities

$81M

$0 Debt

Customer base

Complementary solutions

Enhance geographic presence

Offshore

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Summary Highlights

• 2011-2015E CAGR 15.7% organic growth • Cash flow positive

Diversified revenue base: • 4 continents • Multiple product lines • Over 130 customers

• Long engagement cycle with repeatable revenues • Existing clients account for 80% of revenues • Multiple growth engines

• Offshore • Scale

• ~$80.5 mm cash and securities investments • No financial debt

Strong Financial Profile

Risk Diversification

Highly Attractive Revenue Model

Operational Margins Expansion

Well Capitalized

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THANK YOU

Contact: Yaffa Cohen-Ifrah, VP Corporate Marketing & Communications

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