www.sapiens.com 1 www.sapiens.com

Roni Al-Dor, President and CEO Roni Giladi, CFO March 2014

www.sapiens.com 2

Safe Harbor Statement

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, 2012 and subsequent reports and registration statements filed from

time to time with the Securities and Exchange Commission.

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• Core software policy administration solutions

• For insurance & financial services customers, globally

Founded / IPO: 1982 / 1992 / 2013

Employees: 900+

Customers: 100+

Global Footprint: EMEA 58% / N. America 31% /

APAC 11% of 2012 Revenue

Revenue: $135.4mm in 2013; expect

~15.2% growth in 2014

Who is Sapiens?

Key Statistics

Historical Perspectives

1982-2000 2001-2008 2009+

Application development

platform

Tailor-made solutions

Focus on insurance

market

Next-generation insurance &

technology portfolio

Expand to financial services

What Do We Do?

Provide core software solutions for insurance and financial services companies

Insurance Software

• Innovative platform for business decisions

P&C L&P Retirement

Technology-Based Solutions

Early Days Pivot 1 Pivot 2

Investment Banks

Retail Banks

Mortgage Banks

Other

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Our Vision

To become

a leading provider of innovative

software solutions for the

global Financial Services market,

with focus on Insurance

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Investment Highlights

$25bn addressable market undergoing transformative modernization

Strong financial profile with multiple growth drivers and good visibility

Proven management team

Innovative products with proven leading functionality and technology

Full suite of core solutions for L&P, retirement, and P&C markets

Blue chip customer base across a broad geographic footprint

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Insurance and Financial Markets are Evolving Rapidly

• Improve end-customer experience through

innovative initiatives

• Mobile, social media etc.

• Support customers’ growth & operations:

• Reduce time to market of new

products

• Expansion into new geographies

• Cost reduction & improved operations

Market Drivers

Insurance and financial services providers need to balance rapidly changing customer requirements and an evolving regulatory framework

Evolving Regulatory Framework

• Solvency II

• Basel

• Dodd-Frank

• Schedule F

• MISMORegulatory compliance

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• Total 2014 external software and services estimated spend: $59.9 billion growing at mid-single digits

• Of which, Sapiens’ TAM is estimated at $25 billion

• Growth of TAM driven by shifts from: • Legacy to modern solutions • Internal to external spending

The Insurance IT Opportunity is Large and Growing

Highly Attractive Growing Market

Source: Market size data per Celent. New/Legacy graphic for illustrative purposes.

Legacy New

2014E Insurance External Software and Services Spend: $59.9 billion

Trends

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Market Transformation in the next Decade

ERP

Banking

Insurance

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Full Suite of Platform Solutions for the Insurance Market

Focusing on Core System solutions

Property, Casualty, Health

Life, Annuity, Retirement

Reinsurance

Group Individual Specialty Personal Commercial Worksite Carriers Reinsurers

Policy Billing Claims Accounting

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Leadership in Insurance Solutions

EMEA North America

Sapiens ALIS is a market leader and should be considered for most short-lists.

Ovum Jan, 2013

ALIS continues to be one of the leading products in the region…

among the best that Celent have seen.” Celent, Nov 2013

Source: XCelent Awards – EMEA Policy Administration Systems for Life, Annuities, Pension and Health, 11/2013. Xcelent Awards - North American Policy Administration Systems 2013 Life, Annuities, and Health 11/2013

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Leadership in Insurance Solutions

Source: Celent research, EMEA Policy Administration Systems, General Insurance, Property&Casualty, January 2014, Craig Beattie Ovum Decision Matrix – P&C Policy Administration Platform Europe, 10/2013. Bubble size represents market impact.

EMEA

3

4

5

6

7

8

9

6 7 8 9O

vera

ll Ex

ecu

tio

n A

sses

smen

t Overall Technology Assessment Score (1–10)

Leader Challenger Follower

Guidewire PolicyCenter

Sapiens IDIT

Accenture Duck Creek Policy

Administration

eBao Tech GeneralSystem

Suite

Innovation Group Insurer Policy

GraphTalk A.I.A.

Xuber for Insurers

TCS BaNCS

“Sapiens continues to offer a solution with great functionality and very strong technology in the EMEA region,….Sapiens IDIT continues to excel as a leading

solution in both functionality and technology.” Celent, Jan 2014.

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Innovation of Technology Based Solutions

1980 1970 2010 2000 1990 2020

Business Process Management

Analytics and Decision Management

2030

Informal design and development methods

Data Management Data

Analytics

Process

Source: Gartner

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Blue-Chip Global Customer-Base

North America UK Europe APAC

Bulgaria

2013 Revenue Contribution

33% 21% 37% 9%

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Opportunities for Growth

Pursue strategic acquisitions 5

Enhance portfolio through innovative technologies 4

Growth into new markets 3

Acquire new customers 2

Expand with existing clients 1

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1.3 1.5 1.7 2.1 1.9 2.0 2.0 2.4 2.0 2.0 2.1 2.6

3.3 3.7 4.1 4.0 3.4 3.3 3.6 3.8

Non-GAAP

Attractive Financial Profile

Consistent Operational Profitability(3)

Operating Profit ($mm)

45.7 52.2 70.3

114.2 135.4

156.0

45.7 52.2

98.1 114.2

135.4

154-158

2009 2010 2011 2012 2013 2014

Impressive Revenue Growth Strong Cash Flow

Total Revenue ($mm) Operating Cash Flow ($mm)

1 Revenues of $98.1mm in 2011 pro-forma for the FIS and IDIT acquisitions. 2 Non-GAAP revenues. 2014 guidance per Sapiens press releases dated February 26, 2014. 3 Non-GAAP operating profit excludes stock-based compensation, amortization of intangibles, capitalization and amortization of software, and valuation adjustment on deferred revenue.

(1)

(2)

13.5 12

8.4

18.8 17.3

2009 2010 2011 2012 2013

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31%

38%

20%

11%

2012

27%

35%

27%

11%

2011

33%

41%

17%

9%

2013

US

Europe

IL

APAC

Revenue by Geography

25.9 34.2

26.7

11.2

35.6 42.8

23.3

12.5

44.2

56.1

22.9

12.2

0

20

40

60

NA EU IL APAC

2011

2012

2013

2011:Pro forma (Non-GAAP USD Millions)

Consistent Revenue Growth in NA and EU

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Attractive Revenue Model …

Revenue ($mm)

Illustrative $5mm initial contract

2.0 2.0

0.5 0.5

Year 1 Year 2

0.9 0.9 0.9 0.9

0.2 0.2 0.2 0.2

Year 3 Year 4 Year 5 Year 6-10

Typical life of product engagement: 10–15 years 2-3x initial contract values

Stickiness Contractual

Pre Production Ongoing Post-Production

High

Go

-Liv

e

$2.5 $2.5

$1.1 $1.1 $1.1 $1.1

License Maintenance Services

Product L&A P&C Reinsurance DECISION

Deal Size $7-$10m $4-$6m $1-$1.5m $1-$4m

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… With Significant Visibility R

eve

nu

e

Time

20% New Customers

Layered revenue streams create significant visibility

Year 2

Year 3

Year 4

80% Existing Customers

Year 1

Year 5

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Gross Margin

• Implementation of new L&P release

• Development of new product for retirement services

• Delivery staff recruitment to support the significant revenue growth

$52.3

$55.8

$40.0

$45.0

$50.0

$55.0

$60.0

2012 2013

Gross Profit

45.8%

41.2%

30%

40%

50%

2012 2013

Gross Margin

(Non-GAAP USD Millions)

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Improved Gross Margins – Key Initiatives

Improve Revenue Mix • Invest in R&D to enhance technology and

enrich product functionality, to allow higher license price

• Grow DECISION out of the total mix • Start working with system integrators to

shift low service work outside and keep the premium service to Sapiens

$

Time

Products

Improve Delivery Margins • Repeatable business from the same product

line and the same territories • Product maturity allow higher gross margin • Increase recurring revenue (account

management, extended maintenance, additional services etc,…(

• Shift non sophisticated tasks to Offshore

Typical Gross Margin of Engagement

Gross

Margin

Pre Delivery Ongoing Post-Delivery

Go

-Liv

e

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Profit and Loss Highlights

Full Year

2012 2013

114.2 135.4 Revenue

52.3 55.8 Gross Profit

45.8% 41.2%

15.2 14.0 Operational Profit

13.3% 10.4%

14.7 14.0 Net Income

12.9% 10.4%

0.35 0.33 Diluted EPS

41,671 42,316 Weighted Average no. of shares

Outstanding shares*: 46,015

Non GAAP Results

(in USD Million except per share amount) * as of Dec 31st, 2013

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Financial Highlights

~15.2% organic growth in 2014

Operationally profitable since Q4 2006

Cashflow positive since 2007

Balanced Financial

Profile

Diversified revenue base:

4 continents

Multiple product lines

Over 130 customers

Risk diversification

Long engagement cycle with repeat revenues

Existing clients account for 80% of revenues

Multiple growth engines

Highly Attractive

Revenue Model

~$70mm cash on balance sheet as of end-of-year 2013

No financial debt Well Capitalized

Gross Margins

Flexibility

Gross margins leverage

Revenue mix

Post delivery margin

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Thank You

Contact: Roni Al-Dor, CEO Roni Giladi, CFO Yaffa Cohen-Ifrah, VP Corporate Marketing & Communications Phone: +972-3-7902032 e-Mail: IR.sapiens@sapiens.com Website www.sapiens.com

www.sapiens.com 24 www.sapiens.com

Appendix

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Non-GAAP Reconciliation SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)

31/12/13 31/12/12 31/12/13 31/12/12

GAAP revenue 36,192$ 31,170$ 135,377$ 113,909$

Valuation adjustment on acquired deferred revenue and long term contract - (36) - 283

Non-GAAP revenue 36,192$ 31,134$ 135,377$ 114,192$

GAAP gross profit 13,500$ 12,095$ 50,406$ 47,450$

Revenue adjustment - (36) - 283

Amortization of capitalized software 1,130 1,191 4,500 3,757

Amortization of other intangible assets 224 212 884 843

Non-GAAP gross profit 14,854$ 13,462$ 55,790$ 52,333$

GAAP operating income 3,325$ 3,519$ 11,883$ 12,045$

Gross profit adjustments 1,354 1,367 5,384 4,883

Capitalization of software development (1,456) (819) (5,392) (3,464)

Amortization of other intangible assets 301 (282) 1,241 1,023

Stock-based compensation 234 226 933 692

Non-GAAP operating income 3,758$ 4,011$ 14,049$ 15,179$

GAAP net income attributable to Sapiens' shareholders 3,421$ 3,316$ 11,604$ 11,780$

Operating income adjustments 433 492 2,166 3,134

Other (468) (92) 252 (220)

Non-GAAP net income attributable to Sapiens' shareholders 3,386$ 3,716$ 14,022$ 14,694$

Non-GAAP basic earnings per share 0.08$ 0.09$ 0.35$ 0.37$

Non-GAAP diluted earnings per share 0.07$ 0.09$ 0.33$ 0.35$

Three months ended Year ended

(in USD Million except per share amount)

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Key Balance Sheet Highlights

(in USD Million)

December 31

2012 2013

.029 70.3 Cash

16.3 23.7 Account Receivable

7.3 9.9 Deferred Revenue

0 0 Debt

118.4 170.4 Total Equity

159% 267% Current Ratio

73% 77% Equity Ratio

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Strong Free Cash Flow

(in USD Million)

December 31

2012 2013

18.8 17.3 Net cash provided by operating activities

(3.5) (5.4) Net cash used for capitalization of R&D

(1.4) (4.3) Net cash used for investing activities

(6.0) 33.5 Net cash provided by (used for) financing activities

(0.4) 0.2 Effect of exchange rate changes on cash

7.5 41.3 Increase in cash

21.5 29.0 Cash at beginning of year

29.0 70.3 Cash at end of year