Elbit Imaging Ltd. Company Presentation. March 2016

Transcription

1 Elbit Imaging Ltd Company Presentation March 2016

2 Legal Information The Information that appears in this presentation is subject to the general comments below This presentation does not constitute an offer and/or an invitation and/or a recommendation to purchase and/or issue securities of Elbit Imaging Ltd. (hereinafter: Elbit or The Company ) and/or its subsidiaries. This presentation includes selective and partial information only that the Company has seen fit to share with the addressees of this presentation. It is possible that the way of presenting the information included in this presentation differs from the way it is included in the aforementioned publications. This presentation includes a summary of the issues described within it and the context in which they are discussed, and not the entire information in the Company s possession with regard to these issues. This presentation does not include all the Company s results and financial information, its notes and/or business plans or a description of all of its operations, and it is not intended to substitute for and/or replace the requirement to review the publications that the Company has released to the public by law, including the Company s 20-F annual report for the year ended on and the Company s complete reports that are included therein (hereinafter: The 20-F Report, and together with the Company s other reports as published to the public, The Reports or the Company s Reports ) and the consolidated financial statements of the company as at as published on 31 March In any instance of a contradiction between the data in this presentation and the data in the Company s Reports and/or in the financial reports that are attached to them, the data in the Company s Reports shall prevail. This presentation includes forward-looking estimations, evaluations and declarations of information (hereinafter: Forecasting Data ). This aforementioned Forecasting Data, including the actual execution of planned activity that is dependent on third or external parties, the realization of the Company s assumptions, plans, designs, estimates, evaluations, schedules, results, pricing, market conditions and similar are based on estimates and expectations according to its best understanding based on the data at its disposal at the time that this presentation was prepared. There is no certainty with regard to the realization of the estimates and/or the assessments and/or the expectations and/or the working assumptions and/or the veracity of the Forecasting Data for any time in the future, and these as well as the actual factors involved and/or results achieved could change and/or be affected by external factors that Elbit cannot foresee and/or control. Information other than Forecasting Data, is updated as of the date of this presentation. The Company does not undertake to update the information included in this presentation, whether it is a Forecasting Data or otherwise, following its publication. The Company has no regulatory obligation to publish this presentation and/or any of the data and information included herein to the public, in the manner they are presented or at all, and it does not undertake to continue to publish presentations and/or information in the manner and with the scope of this presentation and/or to retain the current format of the presentation of this information in the future. Elbit owns all proprietary rights to the information included in this presentation. This presentation may not be copied, reproduced, distributed, published or used in any other way, in whole or in part, without prior written permission from Elbit. 2

3 Contents 1. Company and Business Profile 2. Steps taken by the Company on the years Description of the Business Activities by Segments: A. Radisson hotel Complex, Bucharest B. Elbit Medical Technologies LTD ( Elbit Medical ) C. Development and Management of Commercial Assets: Plaza Centers NV ( Plaza Centers ) D. Land Plots in India 4. Loans and Notes of the Company on a Stand-alone basis 3

4 Company and Business Profile Elbit Imaging Ltd was established in The stocks of the Company are traded on the NASDAQ and the Tel Aviv Stock Exchange. The Company notes are traded on the Tel Aviv Stock Exchange. Structure of the Company s holdings The Company has two main shareholders: York Capital and its affiliates ( York ) hold approximately 19.7% of the Company s share capital and Davidson-Kampner and its affiliates ( DK ) hold approximately 14.3% of the Company s share capital. The rest share held by the public. The Company s Business segments are: Operation and management of Radisson hotel Complex in Bucharest, Romania. Through our subsidiary, Elbit Medical technologies Ltd ( Elbit Medical ) (90% and 86% fully diluted), we hold two companies: InSightec (27%) and Gamida Cell (23%). Through our subsidiary,plaza Centers (45%), initiation, construction, operation, management and sale of commercial real estate assets in Europe. Land Plots in India (in partnership with Plaza Centers). 4

5 Elbit s Structure According to Sectors of Business Activity The Company's portfolio is based mainly on initiation and operation of real estate projects, as well as operations in the medical segment Elbit Imaging Ltd Development of Hotels Commercial Land Plots in India Elbit Medical Centers Radisson Blu, Bucharest, Romania ( ~ 98% ), which includes 763 rooms. Land in Tiberius. Shopping Centers development and management in Central and Eastern Europe. 5 active shopping centers of 139 thousand square meters GLA. 2 Land Plots: Bangalore (50%) (**). Chennai ) 80% ( (**). 2 portfolio companies: InSightec (27%): (*) Engaged in the fields of oncology, gynecology and neurology. Develops a non-invasive intensity focused ultrasound device that thermally ablates tumors inside the body. 4 projects designated for development in Eastern Europe. 11 Land Plots in Eastern Europe. Gamida-Cell (23%): (*) Engaged in the development of stem cells therapeutics, sourced by blood from the umbilical cord. Real estate Non-real estate (*) Fully diluted )**( The Company and Plaza share together in equal share 5

6 Main Steps Taken by the Company after Completion of the Debt Restructure o Signing the agreement for refinance of the Raddison Hotel complex in Romania, for a total amount of 97 million, and withdrawal of the first stage totaling 85 million. o Acquisition of minority shareholders holdings in Bucuresti (which holds the Radisson Blu hotel complex in Romania), turning it into a private company in which the Company holds about 98%. o Opening of the Park Inn complex in Romania. hotel in September 2015, after completion of an extensive renovation project in the Radisson Hotel o Sale of the Company s full rights in its hotels in Antwerp Belgium, at a value of approximately 48 M. o Investment round in Series D Preferred Shares of InSightec (during ) in the amount of $84.5 M by York and other investors at a pre-money valuation of $200 M (subject to adjustments). o Sale of the Koregaon Park, India, commercial center by Plaza, at a value of 35 million. o sale of the Liberec commercial center by Plaza, at a value of 9.5 million. o Commencement of the development and construction of the Sportstar project in Belgrade by Plaza. o Signing of an agreement for the sale of the Company s and Plaza s land in Bangalore, India, at a value of 45 million. 6

7 Main Steps Taken by the Company after Completion of the Debt Restructure (cont.) o Launching plans for a buy-back the Company s notes in the amount of NIS 90 million, from which the Company has purchased a total of NIS 69 million par value series H bonds, for a total cash consideration of NIS 62 million. o Signature on a addendum to a credit agreement with Bank HaPoalim, in the framework of which the loan s due date was extended, subject to the Company carrying out certain payments (see page 36). o Significant decrease in General and Administrative expenses, by reducing number of employees in the Company s headquarters and subsidiaries and moving into smaller offices. o Sale of Mango Israel s activity to Fox for NIS 35 million. 7

8 Description of Business Activities by Segments 8

9 Radisson Hotel Complex, Bucharest General The Company control (98%) in a Romanian company which is the owner of hospitality & commercial complex located in the heart of Bucharest. The Complex includes: The five stars Radisson Blu hotel (424 Rooms and 63 Elite apartments). The four stars Park Inn hotel (210 Rooms) Aparthotel hotel (66Rooms) Commercial area of approximately 7,200 square meters All hotels are managed by Rezidor (management agreement is set to expire in 2036). Radisson Blu Hotel, Bucharest The hotel was opened in September 2008 and is located in the center of Bucharest and since then constituted a significant part of the exclusive hotels market in Bucharest. 424 Rooms and 63 Elite apartments. The hotel includes a prestigious F&B Outlets. 9

10 Radisson Hotel Complex, Bucharest (cont.) Park Inn Hotel The Company completed renovation for four stars hotel in Bucharest. The cost of the renovation was approximately 6 M, which were financed from the hotel s internal sources. The Hotel was opened in September The Park Inn hotel consist of 210 rooms /apartments. Apart Hotel 66 apartments for long term lease. Most apartments occupied by parliament's members. 10

11 Radisson Hotel Complex, Bucharest (cont.) Commercial areas The Complex includes approximately 7,200 square meters of commercial areas. These areas include: World Class Fitness Center of 2,600 square meters including a fitness center, an indoor swimming pool, Jacuzzi and spa. Platinum Casino of 2,200 square meters, which includes the main casino, a private casino, a restaurant and a VIP restaurant. A commercial area of 2,400 square meters which includes fashion, jewelry, gifts, antiques and beauty shops. 11

12 Radisson Hotel Complex, Bucharest (cont.) Summary: Number of rooms including apartments 763 Commercial area (in square meters) 7,200 NOI (M of ) Value (M of ) ( ) Debt (M of ) ( ) 59.8 Delisting of Bucuresti from Trading The Company held 76.8% of the ownership of the hotel through Bucuresti Turism SA ( Bucuresti ), a public company traded on Rasdaq (a Romania-based stock exchange). In June 2015 the Company announced that shareholders holding 21.48% of Bucuresti, exercised their right to withdraw from Bucuresti. Following the decision of the company s management, the General Meeting of Bucuresti decided to offer to the minority shareholders in Bucuresti to redeem their shares at a price of 4.5 per share. Total expense of the investment in the purchase of the minority was 13.9 million, from which 11.9 million were financed by an owners loan from the Company to Bucuresti, and the rest was financed by Bucuresti s internal sources. After completion of the delisting process the Company holds 98% in Bucuresti which became a private company. 12

13 Radisson Hotel Complex, Bucharest (cont.) Refinancing of Radisson Blue Hotel On March 10, 2016, Bucuresti signed a loan agreement for re-financing the Raddison Hotel complex in Romania. According to the agreement, Bucurestu will receive financing for the property for up to 97 million, which will be withdrawn in two stages: In Stage A, 85 million, and an additional 12 million in Stage B. Each withdrawal is subject to preconditions as set out in the agreement. On March 24, 2016, the Company completed the withdrawal of Stage A of the loan agreement ( 85 million). The total credit amount for the hotel prior to the completion of the refinancing agreement was approximately 60 million. The net cash received by the Company (after re-financing of the existing loan and transaction expenses) totaled to 24.4 million. 13

14 Elbit Medical Business Profile Elbit Medical Technologies is a holding company in the biomedical field that holds InSightec and Gamida Cell. Business description Elbit Medical is controlled by the Company (90% and 86% fully diluted) and is traded on the Tel Aviv Stock Exchange. Structure of holdings Elbit Medical InSightec is developing an MR-guided Focused Ultrasound treatment platform to address a variety of growing neurosurgery, oncology and gynecology indications in a safe, noninvasive and personalized treatments. )23%( 25% )27%( %31 Gamida Cell is developing therapeutic products based on cells derived from the umbilical cord blood. 14

15 InSightec Operating Room of the Future InSightec is the world leader in development of the operating room of the future based on guided ultrasound and is MRI controlled, for non-invasive, controlled treatment in real time, for use in a wide range of clinical indications in the fields of neurosurgery, oncology and female healthcare. The treatment by means of guided, MRI guided and controlled ultrasound treatment, offers quality treatment with a significantly lower risk profile than surgery, is non-invasive, personally customized to the particular patient, while minimizing harm to the tissue adjacent to the target tissue, and displays positive and immediate results for the benefit of the patients. What is ExAblate? ExAblate is a High intensity focused ultrasound generates heat and ablates targeted tissue, at the focal point Magnetic resonance imaging system (MRI) allows the physician to identify and target tumors, and provides temperature monitoring of the treated tissue in real time 15

16 Real-time treatment Locating the target tissue Planning the treatment Carrying out treatment while monitoring its results in realtime Achieving the desired results and completion of the treatment Adjusting the treatment parameters in order to reach the desire result, in real-time Source: 16

17 ExAblate : A Therapy Platform Treating a Growing Portfolio of Clinical Indications *Currently under FDA pivotal study G **Pain palliation of bone metastases FDA PMA P ***For the treatment of symptomatic uterine fibroid treatment FDA PMA P

18 ExAblate Neuro 18

19 ExAblate for treatment of neuro-surgical indications Dec 2012 Approval by CE More than 400 treatments for a variety of neurological disturbances Trembling disturbances - ~ 280 treatments Parkinson s - ~ 130 treatments Neuropathic pain - ~ 70 treatments Obsessive-compulsive Disorder (OCD) - ~ 10 treatments (*) Trademarks and experimenting treatments As of March

20 Advantages of the system for treating neurological disturbances Solves the needs of the marketplace Clinical advantages: Replaces expensive invasive treatment (DBS) Cancels the need for repeat visits for adjustments and calibration Patients are returned to independent functioning One-time treatment Immediate relief for movement disturbances Meaningful improvement in the quality of life High safety profile without invasive treatment of the brain Treatment without hospitalization Treatment without implants or need for continuous adjustments Source: *May require FDA authorization under FDA regulation 20

21 Transactions In Insightech s shares Financing Round In the second half of 2014, InSightec signed an investment agreement with York and other investors for an investment of $62.5 M in series D preferred shares of InSightec. The investment in the series D preferred shares was executed based on $200 M pre-money valuation (subject to adjustments). On March 1, 2016, an adjustment of 8% had been made to the price of InSightec shares, and the owners of Series D preferred shares were allotted additional shares. After the completion of the investment round, a new chairman was appointed for InSightec, Dr. Morris Pherre, that has an expertise and experiences in Insightec s business. In January 2016 Dr. Morris Pherre was also appointed as the CEO of the company. At the end of 2015, InSightec completed an additional round of investment in InSightec preferred D shares, of $22 million, from existing and new investors. As of today the shareholders have invested approximately $284 M in InSightec. ELBIT Group GE group York Fund GEOC MTA group Others 4.2% 32.3% 4.3% 25.3% 26.6% 7.3% 21

22 Transactions In Insightech s shares Deals in Insightec s shares In March 2015 York and other investors purchased from GE 6 million Series C Preferred Shares of InSightec (approx. 4.2% of InSightec's on a fully diluted basis), at a price of $1.50 per share, and an option to purchase 12 million additional Series C Preferred Shares, (approx. 8.5% of InSightec's on a fully diluted basis), for the same price ($1.50). In December 2015, York and other investors purchased from GE 20 million InSightec shares (consist of preferred C shares and preferred B shares) which constitute 13% of the InSightec s share capital (fully diluted basis) at the price of $1.25 per share. In addition, within the framework of the agreement the purchaser were granted an option to purchase an additional 7.5 million shares (consist of preferred B and preferred B-1 shares) from GE, which constitute 4.8% of InSightec s share capital (fully diluted basis) at the same price, part of which within a year and the others within two years from completion date of the transaction, subject to the conditions set out in the agreement. 22

23 Gamida Cell Company Profile Developing bio-technological products based on stem-cells from umbilical blood for treating hematological diseases A number of unique technologies were developed by Gamida Cell for breeding stem cells The main product NiCord is expected to commence Phase III trials during 2016 Novartis has invested $40 million in Gamida with the possibility of investing up to an additional $10 million in future financing round( subject to certain conditions) 41 employees with an experienced management Gamida Cell has up until now raised $95 million 23

24 NiCord - treatment of hematological and severe auto-immune diseases Main Product NiCord NiCord is based on umbilical blood that is enriched with stem cells using the NAM technology Phase I/II clinical trials of this product on patients with malignant hematological diseases, by infusing two units of umbilical blood, have concluded in the framework of IND. Phase I/II clinical trials of this product on patients with malignant hematological diseases, by infusing one unit of umbilical blood, recruitment of patients continues. Start of Phase III trials is expected in A principle agreement has been reached with the regulatory agencies in the USA and Europe, concerning the outline of the trials. Phase I/II clinical trials on patients with sickle-cell anemia, recruitment of patients continues Gamida Cell holds full rights to this product 24

25 Last Financing Round and Option to acquire Gamida Cell On September 2, 2014 Gamida Cell and the majority of Gamida Cell s shareholders (including Elbit Medical), completed execution of an Option and Investment Agreements (the "Agreements") with Novartis Pharma AG ( Novartis ). Under the Agreements, Novartis invested $35 million in Gamida Cell in exchange for approximately 15% of Gamida Cell s share capital (fully diluted basis)and an option to purchase from the other Gamida Cell shareholders (including Elbit Medical) all their holdings in the Gamida Cell (the "Option"). In June, 2015, Novartis notified that despite the fact that Gamida Cell had successfully met all of the agreed milestones, Novartis does not intend to exercise the Option. Nonetheless, it was further stated that Novartis was interested in continued collaboration with Gamida Cell in the development of its products, and would soon explore suitable alternatives with Gamida Cell. On November 5, 2015 Novartis invested in Gamida Cell an amount of $5 in return for approximately 2.5% in Gamida Cell( on a fully diluted basis). In addition, in the event that by the end of 2017 Gamida Cell shall raise the minimum remaining funding required to cover the Phase III study of NiCord, by way of an equity investment, Novartis will invest in Gamida Cell,subject to certain conditions set in the Agreement, an additional amount of up to $10 million Ownership structure (fully diluted) 14% 23% Elbit Medical CBI 10% IHCV Teva 18% 5% 14% 16% Novartis ESOP Others 25

26 Plaza Centers: Development, Management and Sale of Commercial Assets Description of Activities Plaza Centers is engage in the initiation, construction, operation, management and sale of real estate projects, mainly in the field of commercial real estate in Central and Eastern Europe. In November 2014 Plaza Centers completed a Debt Restructuring with its creditors. In the framework of the Debt Restructuring, Plaza issued rights offering to its shareholders in the amount of 20 million. The Company invested an amount of approximately 8.3 million in the rights offering. DK invested the amount of approximately 11 million in the framework of an underwriting agreement signed between the Company and DK. The Company s holdings in Plaza after completion of the Debt Restructuring is about 44.9% and DK holds about 26.3% of the share capital of Plaza. Plaza Centers has been engaged in the field of real estate development in developing markets for more than 19 years. Plaza Centers has 5 active commercial centers, as well as pipeline land plots in Eastern Europe, which are designated for development. Plaza Centers shares are traded on the main market of the London Stock Exchange (LSE), the Warsaw Stock Exchange (WSE) and the Tel Aviv Stock Exchange.(TASE) Regarding Plaza Centers holdings in the group s lands plots in India together with the Company, see page

27 Plaza Centers Assets Designated for Development Plaza Centers has designated 4 projects for the development of commercial centers, hotels and offices. The total value of the assets is approximately 161 million. Against these assets Plaza Centers has no specific bank loans. Country Name Location Type GLA (m 2 ) Plaza Center's holding Additional Information Fair value (( million) (*) The plan includes : Romania Casa Radio, Bucharest Center of Bucharest Commercial, offices, hotel 467,000 (GBA incl. parking) 75% Commercial center 90,000 GLA, central underground parking and public building. office buildings Hotel and convention center. Romania Timisoara, Plaza Timisoara Commercial 40, % The plan includes a commercial center. Location: Central city in Romania, with a population of more than 300 thousand citizens. 9.4 Serbia Belgrade, )MUP( Plaza Belgrade Mixed use 63,000 (GBA) 100% The plan includes commercial centers and apartment hotel complexes Serbia Belgrade, Visnjicka Plaza Belgrade Commercial 32, % The plan includes the establishment of a commercial center project. Location: center of Belgrade, the capital and the central city of Serbia Plaza has commenced the constriction work in the site Total (*) According to external valuation received for the financial statement as of

28 Plaza Centers Land Plots Designated for Realization Plaza centers has a pipeline of 11 land plots in Eastern and center Europe that are designated for realization at a total value of 32 million. Against the land assets in Romania there is a bank loan in the amount of about 8.2 million. Country Number of land assets Fair value ( million) (*) Poland Hungary (**) 1 6 Romania Bulgaria 1 1 Greece 1 4 Total (*) According to valuation received for the financial statement as of (**) Includes an office building at fair value of 2.6 million. 29

29 Plaza Centers Key Figures from the Financial Statements as of Total assets: approximately 392 million. Total cash on hand: approximately 5.6 million (out of which 4.7million are restricted cash). Total liabilities to banks : approximately 130 million. (*) Total liabilities to bond holders in Israel: approximately 190 million (Par value). Total liabilities to bond holders in Poland: approximately 13.1 million (Par value). Shareholders equity : approximately 83 million. (*) Including loans that has been given to affiliated companies in the total amount of 28 million. (Plaza share 50%). 30

30 Land Plots in India Elbit Plaza India (EPI) is a joint venture established by the Company and Plaza Centers with the purpose of initiating and establishing real estate projects in India. Structure of the holdings (schematic) Plaza Centers N.V. 50% 50% Elbit Imaging LTD. Elbit Plaza India 80% Chennai Project 50% Bangalore Project Bangalore is one of the cities with the highest growth rate in India about 47% growth in a decade and a metropolitan with a population of more than 9 million residents. More than 40,000 new residential units were launched in Bangalore constitutes a center for international companies, including the technology segment. Location East Bangalore Holding Percentage 50% Our share in the value (*) 29 Bangalore Bangalore Deal In December 2015, EPI signed an agreement for the sale of 100% of its holdings in the company which holds a site in Bangalore, to a local investor. Total total proceed is Crores 321 (approximately 45.4 million) which will be paid upon completion of the transaction. The direct portion of the Company is 50% (approximately 22.7 million). The transaction is subject to certain preconditions, and will come into force after these have been met and not later than September 30, The investors have provided certain securities in order to guarantee the completion of the deal at the above mentioned date. (*) The share of the Company and Plaza together. According to external valuation received for the financial statement as of

31 Land Plots in India (cont.) Chennai is the fourth largest city and metropolitan in India, with a population of more than 10 M residents. As of 2012, Chennai is the No. 2 exporter in India of IT and BPO services. It is estimated that the economy of Chennai will increase to approximately $100 Billion, 2.5 times its current size by 2025 (according to CII). Location: in proximity to one of the largest technological parks in India (Sipcot). Location South Chennai Holding Percentage 80% Our share in the value (*) 21 Chennai Transaction for the sale of land in Chennai: EPI signed an agreement for the sale of its 80% holdings in Kadavanthara Builders Private Limited (SPV) that owns approximately 74.7 acres in Chennai subject to the fulfillment of certain conditions precedent. The sales transaction supposed to be completed by January 15, The expected net price to EPI was approximately 23 million (INR Crores), less all transaction-related costs. On January 15, 2016, the company announced that the sale which was supposed be finalized by January 15, 2016 has not been completed. At the same time, since the local Indian partner failed to complete the transaction by the above-mentioned date, EPI is taking steps to exercise its right to receive the 20% of the holdings from the partner the SPV. (*) The share of the Company and Plaza together. According to external valuation received for the financial statement as of

32 4. Loans and Notes of the Company on Stand-alone basis 33

33 Financing at the Company on stand alone basis The company has 2 Series bonds traded on the Tel Aviv Stock Exchange Series H Bond Principal (31/12/15) NIS 391 million(*) Interest: 6% paid semi annually Principal: to be paid in a single payment on 31/5/2018 Bond balance (Pari) (31/12/15) NIS 391 million Collaterals First floating charge on all the assets of the Company First ranking fixed pledge on the shares and shareholders loans of Elbit Ultrasound (Lux) B.V./S.àr.l (which hold Plaza Centers), as well as on the shares and shareholders loans of Elscint Holdings and Investment N.V (which holds indirectly the Radisson complex in Romania). Negative pledge by the Company, Elbit Ultrasound (Lux) B.V./S.àr.l and Elscint Holdings and Investment N.V. Series I Bond Principal (31/12/15) NIS 218 million Interest: 6% accumulated and paid with the principal at the end of the period Principal: to be paid in a single payment on 30/11/2019 Bond balance (Pari) (31/12/15) NIS 238 million Collaterals Second floating charge on all the assets of the Company Second ranking fixed pledge on the shares and shareholders loans of Elbit Ultrasound (Lux) B.V./S.àr.l (which hold Plaza Centers), as well as on the shares and shareholders loans of Elscint Holdings and Investment N.V (which holds indirectly the Radisson complex in Romania). Negative pledge by the Company, Elbit Ultrasound (Lux) B.V./S.àr.l and Elscint Holdings and Investment N.V. (*) net of self purchases of notes by the Company through 31/12/15 in a total of approximately 56 million. 34

34 Financing at the Company on stand alone basis (cont.) Repurchasing Program of the Company s notes The launched two programs for buy-backs of notes during , for a total amount of NIS 90 million. Up to the date of this presentation, purchases of series H notes have been executed as follow: In NIS million Plan A Plan B Total Total amount of the plan Notes Purchased (at PAR value ) Cash invested for purchasing Balance for purchasing In the framework of the first purchasing plan, the Company prepaid to Bank HaPoalim a total amount of NIS 10 million. 35

35 Financing at the Company on stand alone basis (cont.) Loan from Bank HaPoalim Bank HaPoalim Principal and accumulate interest as of 31/12/15-37 million LIBOR interest %, paid in quarterly payments Accumulated interest until the end of the period at the rate of 1.2% Principal 15 million was paid on 31/3/16, 7 M will be paid on 31/11/16, and the balance on 30/11/17. Liens and Financial Covenant First charge on the shares capital and shareholders loans of the holding company that holds (indirectly) the Radisson Blu hotel in Romania Lien on about 86 M shares of Plaza Centers (about 13% of the share capital of Plaza centers after completion of the Plaza s debt restructuring) The company is required to maintain a loan to value (LTV) ratio of 85% The funds from the refinancing of the Radisson Hotel in Bucharest in the amount of up to 97 M may serve the needs of the Company and not for early repayment of the existing loan. In the event of sale / change in the control of the Radisson Hotel in Bucharest, the bank will be entitled to the repayment of the amount of approximately 29 M. In a partial sale without loss of control, the bank shall be entitled to the relative payment. The balance of the proceed from the sales of the hotel shall serve the needs of the Company. Cash balance at the Company as of 31/12/15 Free cash Restricted cash NIS 71 M NIS 16 M NIS 87 M 36

36 Thank You