MIVNEINVESTORS PRESENTATION, March 2018

• This presentation was prepared by Jerusalem Economy Corporation ltd. and/or Companies under its control("the Company"), and does not constitute an offer for the acquisition or sale of the Company's securities, oran invitation to receive such offers. The statements made in it do not constitute a recommendation,statement of opinion or substitute for investor's discretion, and they are solely intended to relay information.

• The information included in this presentation is a summary only, and does not exhaust all of the dataconcerning the Company, and its operations, nor is it a substitute for an inspection of the annual report forthe year 2017 and the Company's current reports. The data in the presentation are based upon datapublished as of December 31, 2017, unless stated otherwise.

• This presentation includes information envisaging and aimed at the future, as defined in the Securities Law,5728-1968. Such information, as stated, includes the Company's current estimates and forecasts concerningfuture developments and events whose materialization is not certain and not under the Company's control.

• Information envisaging and aimed at the future is based upon the Company's point of view and assessment,which draws, among others, upon data and information that is at the Company's disposal at the time ofproducing this presentation. Information envisaging and aimed at the future is, by its very nature, subject tosignificant risks of non-materialization, and such information is uncertain, and its materialization or non-materialization is affected, among others, by the risk factors characterizing the Company's operations, as wellas by the developments in the general environment and in external factors affecting the Company'soperations. Consequently, the results of the Company's operations in the future might substantially differfrom those presented in the information provided in this presentation, thus envisaging and aimed at thefuture. Likewise, the Company does not undertake to update and/or to change any forecast and/orassessment as stated for those to reflect events or circumstances, which will occur after the date ofproducing this presentation. It is clarified that the Company will not bear liability for any damages and/orlosses, which might be caused as a result of using the information included in this presentation.

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The Company owns million sq.m for rent in Israel

About Mivne Group

About tenants (not including associated companies)

office, commercial, industrial and logistic spaces and buildings in Israel

New and innovative projects in stages of construction and planning in Israel, spanning an area of

thousand sq.m which will be the growth engine of the Company in the next few years

Equity attributable to Shareholders of Jerusalem Economy Corporation billion NIS

Total value of real estate billion NIS. Value of land and additional rights

billion NIS

Mivne Group specializes in the initiation, acquisition, construction and management of structures and buildings for offices, high-tech,industry, logistics and commerce for rental or sale. In addition, the Group has several residential projects currently under construction.

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1,781 thousand sq.m for rent

1,098 sq.m industry and logistics

212 thousand sq.m commercial space

609 million NIS NOI 1-12/2017Approx. 2,950 tenants

14 shopping complexes

Mivne Group - Operations in Israel

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The above data includes equity accounted investees

471 thousand sq.m offices

Rental-Yielding Real Estate in Israel by sectorJerusalem Economic Corporation – Consolidated, in billion NIS

Offices2.7 billion NIS

Commercial2.0 billion NIS

Industry & Logistics 3.3 billion NIS

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33%

25%

42%

557Million NIS

Commercial127

Offices190

Industry240

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NOI (Net Operating Income) in Israel by sectorJerusalem Economy Corporation – Consolidated, in million NIS, 1-12/2017

1,986

1,5521,371

1,817

2,299

31/12/1731/12/1431/12/13 31/12/15 31/12/16

68%+

2,795

2,140

1,765

2,860

3,221

31/12/1731/12/1531/12/1431/12/13 31/12/16

82%+

Equity Attributable to Shareholders of Industrial Buildings Corporation ltd. (In million NIS)

31/12/2013

31/12/2017

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Equity Attributable to Shareholders of Jerusalem Economy Corporation ltd. (In million NIS)

MIVNE GROUP - Significant Events During the Period (1-12/2017)

During the period 1-12/2017, the Company recorded a total comprehensive income of 213 million NIS. This profitincludes a one-time loss of 172 million NIS due to early redemption of loans from financial institutions and bankingcorporations, without which, it would record a total comprehensive income in the amount of 363 million NIS.

During the period 1-12/2017, Industrial Buildings Corporation (“IBC”) recorded a total comprehensive income in theamount of 208 million NIS.

The growth in the consolidated NOI Same Property (“NOI SP”) in Israel, over the period 1-12/2017, was 2.6%

In July 2017, IBC completed a fund raising round in the amount of 279 million NIS.

In June 2017, Midroog announced the raising of ranking of the bonds of Jerusalem Economic Corporation (“JEC”)from Baa1.il with a positive outlook to A3.il, with a stable outlook.

In July 2017, Maalot announced the raising of the ranking of IBC from A- ranking to A ranking, and set a stableforecast for all series of bonds.

During 2017, the Group issued bonds in total amount of 1.9 billion NIS with interest in the range of 2.6% - 3.2% and

terms of approx. 7-8 years

During the period 1-12/2017, the Group repaid bonds in the amount of 3.5 billion NIS, at an average interest rate of5.8%.

During 2017, assets were realized for total consideration of 957 million NIS abroad and 163 million NIS in Israel.

In November 2017, IBC sold shares of JEC for the amount of 86 million NIS.

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Where Are We Headed?Strategy and Vision

Focus on Operations in Israel• Upgrade of the buildings in Israel, and realization of assets that are not at the core of the Groups operations• Focusing the Group's operations on geographical regions where it has a relative advantage • Continued streamlining of management and operational expenses

Facing the FutureThe Group ins process of implementing and planning, at an advanced stage, new projects spanning 190 thousand sq.m, as well as planning future projects spanning 400 thousand sq.m, which are predicted to increase the NOI of the Group over the coming years.

CONTINUED REALIZATION OF MOST OF THE GROUP'SASSETS ABROAD

DECREASING THE LEVERAGE RATE

CONTINUED GROWTH IN FFO AND NOI(for activity in Israel)

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158 155 154160

202 204-207

31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018F

Increasing the FFO

Development of the FFO of JEC - Consolidated, in million NIS

11

225 221213

199

283 278-284

31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018F

Development of the FFO of IBC - Consolidated, in million NIS

Projects in planning and development in Israel

The Growth Engine

Major Projects under Development

Life Sciences Park, Haifa

Mivne Tower, Herzliya Pituach

Residential Project,Marom HaSharon

The Meytav in Tel Aviv, Bitzaron

HaSolelim Compound,Tel Aviv

Mivne Compound, Holon

Mivne Building,Or Yehuda

Mivne Ramat Siv, Petach Tikva

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Projects Under Current Planning and Development

Estimated Building Costs (including land, in million NIS)

Expected NOI(in million NIS)

Estimated Date of Completion

Built-up Area (in sq.m)

Intended UseLocationProject Name

Short to Medium Term Projects Being Currently Planned and Constructed

1,550-1,60065-75

202366,500Office & commerceTel AvivHasolelim Compound, Tel Aviv

Not relevant32,000 / 360 unitsResidential HousingTel AvivHasolelim Compound, Tel Aviv

200-27016-18202230,000OfficesHaifaLife Sciences Park, Haifa *

85-957-8.5202113,000Offices - phase AHolonMivne Compound, Holon

333Not relevant202117,000Residential HousingTel AvivThe Meytav in Tel Aviv

60-654-520197,500OfficesOr Yehuda“Mivne” Building Or Yehuda

352-320196,000Industry & LogisticsKiryat GatKiryat Gat Logistics center

Long Term Projects Being Currently Planned and Constructed

TBDTBDTo Be Determined220,000Residential HousingOffices & Commerce

Tel AvivThe Meytav in Tel Aviv **

TBDTBDTBD30,000OfficesHaifaLife Sciences Park, Haifa *

TBDTBDTBD13,000OfficesPetach TikvaMivne Ramat Siv, Petach Tikva

TBDTBDTBD34,000Residential HousingOffices & Commerce

Herzliya PituachMivne Tower, Herzliya Pituach***

* 50% ownership** The Company is working to increase the rights to 370 residential units and 180 thousand sq.m of offices in accordance with the ‘Tel-Aviv 5000’plan which applies to this compound. At this stage, the scheme grants right to 56,500 sq. m. (over the ground) of offices*** The Company is working to submit an urban building scheme with a view to increasing the rights. At this point in time, the existing schemegrants rights to about 8,000 sq.m of (over-the-ground) built-up area consisting of offices and commercial spaces

Projects Under Current Planning and Development - Expected Impact on NOI

In million NIS

557Actual NOI for the year 2017 (in Israel)

112Additional NOI from construction projects(in the short to medium term, assuming full occupancy)

10Additional NOI from existing assets (on annual basis, excluding assets which were sold)

679Expected NOI after occupation of buildings under construction (in Israel)

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557

679

22%+

The Meytav in Tel AvivBitsaron neighborhood, Tel Aviv

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• Area of the lot: Approx. 23 dunams• Designation under existing urban building scheme: Residential

housing (Phase A) + Employment and Commerce (Phase B)• Total built-up area under urban building scheme:

Phase A: Approx. 17 thousand sq.m in the main compound (170residential units)

• Currently under implementation. Phase A expected completion:2021

• Total number of residential units sold to date: 126• Average selling price per sq.m (based on sales to date): 25,256 NIS• Total anticipated building costs to be expected for Phase A: Approx.

210 million NIS• Planning update (Phase B):

115 thousand sq.m including approx. 350 residential units and 2office towers (of which total built-up area of approx. 20 thousandsq.m). It appears that it will be possible to request and obtain, forthe remainder of the compound, rights following the Tel Aviv 5000Outline Plan which was recently approved. The Company expectsthat the updated approval will be issued within 3 years.

Hasolelim CompoundTel Aviv

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• Area of the lot: Approx. 24 dunams

• Built-up area and designation:

o Residential housing: Approx. 32 thousand sq.m, 360

residential units

o Offices: Approx. 64 thousand sq.m

o Commerce: 2,500 sq.m

• Expected construction start date: 2018

• Expected investment cost: 1,550-1,600 million NIS

• On 22.11.2017, the Planning and Construction sub-committee

recommended to approve the Urban Building Scheme

TA/MK/3900. The Company is working to deposit the scheme

and obtain building permits as soon as possible.

Life Sciences ParkHaifa

• Area of the lot: Approx. 31 dunams

• GLA: Approx. 12 thousand sq.m

• Construction of the first building of five, of the five planned, has been completed. 4 additional structures (GLA - 56 thousand sq.m) are currently being planned

• Investment cost: Approx. 450-500 million NIS

• Ownership: 50%

The Company is working with Haifa City Council to obtain building permits for the next two buildings this year.

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Mivne CompoundHolon

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• Area of the lot: Approx. 59 dunams

• Built-up area and designation:

o Phase A - 12.3 thousand sq.m -Commercial spaces

o Phase B - 13 thousand sq.m -Employment and Offices

o Phase C (Potential phase) - 100 thousand sq.m office and commercial spaces

• Phase A - Completed and successfully occupied. Occupancy rate stands at 93%.

• NOI expected from Phase A: Approx. 10 million NIS

Mivne TowerHerzliya Pituach

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• Area of the lot: Approx. 4 dunams

• GLA: 3 thousand sq.m of offices and commercial spaces

• Expected GLA: 34 thousand sq.m of residential housing, commercial and office spaces

• Urban building scheme was submitted to the District Committee. Expected to be approved within 2-3 years

RESULTS OF THE OPERATIONS

31/12/2017

Net Financial Debt and Debt to CAP

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12,507 12,865 11,605

7,970 6,781

31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017

78.4%82.5%

84.3%

71.0%

63.4%

25%-

JEC - Development of Debt to Capital Ratio and Net Financial Debt (Consolidated, in million of NIS)

5,449 5,204 4,850

4,304

3,680

31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017

73.4%

77.1% 78.2%

70.5%

61.8%

21%-

IBC - Development of Debt to Capital Ratioand Net Financial Debt (in million of NIS)

1,282

364

194 241

470 455

2017 2018F 2019F 2020F 2021F 2022F

* Including early redemptions of bonds series 14 and 15

*

Loans in Israel

1.9 billion NIS

Loans Abroad

0.8 billion NIS

Bonds

5.1 billion NIS

25%

10%65%

Expected Repayment and Financial Debt Structure (After refinancing of payment terms and amortization tables)

Expected Repayments in Israel (JEC Solo in million of NIS)

Expected Repayments in Israel (IBC in million of NIS)

Debt Structure as of 31/12/2017 (consolidated, in billion of NIS)

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775

208 135 129 129 129

2017 2018F 2019F 2020F 2021F 2022F

Summary of the Balance sheet as of 31/12/2017Jerusalem Economy Corporation Consolidated, In million NIS 15,63313,445Total Balance sheet

10,82810,306Fair Value of Investment Property and Investment Property under construction

904847Equity Accounted associated companies

670307Assets Held for Sale

186144Liabilities on Account of Assets Held for Sale

1,3191,151Net Deferred Tax Liabilities

7,9706,781Net Financial Debt

3,2523,918Total Equity

2,8603,221Total Equity Attributable to Shareholders

31/12/2017 31/12/2016

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7,9837,275Total Balance sheet

1,121634Current Assets

6,8176,641Non-Current Assets

6,1996,152Fair Value of Investment Property and Investment Property under construction

309109Assets Held for Sale

1,4941,502Unsecured rental-yielding Assets

6,1415,001Total Liabilities

4,3043,680Net Financial Debt

1,7972,274Total Equity

31/12/201631/12/2017

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Summary of the Balance sheet as of 31/12/2017Industrial Buildings CorporationIn million NIS

Summary of Profit and Loss StatementFor the period 1-12/2017Jerusalem Economy CorporationConsolidated, In million NIS

1-12/2017

1,087989Total Income from rent-yielding assets

789728NOI from rent-yielding assets

674691NOI SP from rent-yielding assets

62105Increase in value of investment property and investment property under construction

(126)(113)General and Administrative expenses

751694Operating Profit

(608)(615)Net financing expenses

-(172)Loss due to early redemption

222108Profit from Continuing operations

(652)-Loss from discontinued operation

(431)108Net Profit (Loss)

(431)280Net profit (loss), after eliminating loss due to early redemption

324213Total comprehensive income

1-12/2016

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Summary of Profit and Loss StatementFor the period 1-12/2017Industrial Buildings CorporationIn million NIS

1-12/2017

600582Total Income from rent-yielding assets

438424NOI from rent-yielding assets

426416NOI SP from rent-yielding assets

6220Increase in value of investment property and investment property under construction

(51)(50)General and Administrative expenses

165416Operating Profit

(215)(160)Net financing expenses

-(93)Loss due to early redemption

(50)163Profit from Continuing operations

(28)218Net Profit (Loss)

(28)289Net profit (loss), after eliminating loss due to early redemption

245208Total comprehensive income

1-12/2016

oup GrMIVNE om ou frynk Tha