Slide 1: Investor Presentation Results H1-2011
Investor Presentation Results H1-2011 August, 2011
Slide 2: Profile
stan GOVERNANCE REAL ESTATE EMERGING MARKETS INFRASTRUCTURE Ices, Profile Unique investment gateway to emerging markets 2 im | KARDAN NV.
Slide 3: Unique investment gateway to emerging markets
Unique investment gateway to emerging markets We initiate, develop and manage long term cash flow generating assets, mainly in Real Estate and Water Infrastructure in promising Emerging Markets. 3
Slide 4: Kardan in short
Kardan in short Entrepreneurial Group focusing on Emerging Markets Active in app. 40 countries Focus: - Real Estate: CEE and Asia - Water Infrastructure: mainly in emerging markets Smaller exposure to Financial Services activities Stock listed on EURONEXT Amsterdam and Tel Aviv Stock Excha
Slide 5: Controlling stakes in core activities
Controlling stakes in core activities (status as per August 2011) Kardan N.V. 100% 100% 100% 74% 11% Real Estate Water Infrastructure Financial Services Kardan Israel GTC Holding Tahal KFS 27% 100% 100% 100% 92% GTC Tahal Tahal GTC SA TBIF China Projects Assets 5
Slide 6: Organizational structure - after the Spin-Off
Organizational structure - after the Spin -Off 11% Kardan NV Kardan Yazamut 100% 100% 100% 100% 97% 74% 11% Real Estate Financial Services Water Infrastructure Milgam Kardan Israel GTC Holding KFS TAHAL 27% 100% 92% 100% 100% 100% 72% 68%* 41% Kardan Tahal Tahal Kardan GTC SA GTC China TBIF Communic
Slide 7: Main activities
Main activities Financial Real Estate Water Infrastructure Israeli Activities Services % of total investment* % of total investment % of total investment % of total investment 12% 9% 50% 29% GTC SA (CEE) Tahal TBIF - Banking & Lending Automotive Sale , Leasing & Rental Leading developer of Proje
Slide 8: Our strategic criteria
Our strategic criteria Qualitative criteria Quantitative criteria Promising Emerging Markets ≥ 15 % IRR per project - educated middle class Comfortable loan to asset ratios Exposure to needs of upcoming middle classes Controlling stake Investments created through our local platforms Exte
Slide 9: Strategic focus
Strategic focus Strategic focus Financial strategy Operating / managing existing activities Strengthening of financial position by deleveraging and increasing liquidity Focus on expansion in real estate and water Funding primarily at the level of subsidiaries rather infrastructure through ex
Slide 10: Managing (y)our investments
Managing (y)our investments Strong corporate governance Risk management Two-tier board structure: Supervisory Board and Corporate: Management Board Decentralization – local platforms to optimize opportunities and minimize risks Headquarters in the Netherlands (Amsterdam) Geographical diversi
Slide 11: Selected recent investment case studies
Selected recent investment case studies IRR: 19% (1998 – 2010) Investments 1998 – 2007: EUR 225mn Sale of TBIH Dividend EUR 156mn Proceeds from sale to VIG (two tranches) EUR 248mn Total EUR 404mn IRR: 36% (1994 – 2011) * Set up cost (1994) USD 3 mn Investment EUR 6 mn GTC SA Dividend received EUR 9
Slide 12: Divestment of assets: approx. EUR 800 million in last 12 months
Divestment of assets: approx. EUR 800 million in last 12 months Significant downsizing of Financial Services Activities: - Sale of 40% stake in TBIH, insurance & pension group, for EUR 126 million - Sale of 84% stake in VAB Bank, Ukraine - Sale of 66% stake in Sovcombank, Russia, for EUR 160 milli
Slide 13: Our activities and markets
Our activities and markets 13
Slide 14: Real Estate: CEE activities (GTC S.A.)
Real Estate: CEE activities (GTC S.A.) Profile GTC SA (27%) Breakdown of GTC SA Portfolio Split of total property portfolio ** Founded in 1994 by Kardan in Poland Total: EUR 2,199 million* Operating in 10 countries in CEE/SEE Residential Residential inventory land bank 3% Initial investment: USD
Slide 15: Real Estate: CEE Activities (GTC S.A.)
Real Estate: CEE Activities (GTC S.A.) Today Recent events 536,000 sqm of completed commercial property Sale of 50% stake in Galeria Mokotow Average occupancy 84% Platinium IV completed and fully occupied (Aviva) Investment property value consists of several Opening of Avenue Mall, Osijek
Slide 16: Real Estate: Asia (GTC China)
Real Estate: Asia (GTC China) Profile GTC China (100%) Residential portfolio & inventory status Portfolio status (sqm Q2-2011) Founded in 2005 by Kardan, incorporated in Unsold inventory Hong Kong 7% Sold inventory Focuses on mixed use projects: residential & 20% retail properties (shopping mall
Slide 17: Real Estate: Asia (GTC China)
Real Estate: Asia (GTC China) Today Galeria Chengdu 7 projects in 5 Tier II and III cities in China 1 commercial center (Chengdu), approx. 95% leased, of which 50% stake sold to PE to raise funding for further development Future plans Existing Projects: Galleria Chengdu-China – Construction of
Slide 18: Water Infrastructure Activities
Water Infrastructure Activities Profile Tahal Group International (100%) Global water supply versus population Specializes in water-related infrastructure projects Operates through the entire value chain, primarily in developing countries Over 2,000 employees working in 30 countries 8% 13% 36%
Slide 19: Water Infrastructure activities
Water Infrastructure activities Today Outlook for coming years Projects: Projects: • Tenders more time consuming and challenging due to Increase in water demand expected to result in increase of stakeholders as a result of funding issues increase of income with governments • Restructuring to make
Slide 20: Overview of our Financial Service activities
Overview of our Financial Service activities Retail Lending (TBIF, 100%) Active in banking & retail lending as of 2001 (TBIF) Key indicators TBIF** : Outstanding net portfolio: EUR 169 mn - consumer finance, leasing and mortgages (100% stake) Two consumer finance organizations in Romania and
Slide 21: Key Financials
REAL ESTATE EMERGING MARKETS INFRASTRUCTURE FINANCIAL SERVICES Key Financials Unique investment gateway to emerging markets 21 im | KARDAN N.V.
Slide 22: Breakdown of profit (loss) to Kardan
Breakdown of profit (loss) to Kardan Profit (loss) attributed to shareholders in EUR million H1-2011 H1-2010 FY-2010 − Real Estate (1) 2 13 − Water infrastructure – Projects (5) 2 2 − Water infrastructure – Assets 1 (1) 3 − Financial Services – Retail lending (10) (30) (57) − Financial Services – In
Slide 23: GTC SA
Real Estate GTC SA H1-2011 H1 - 2010 2010 GTC SA (in EUR million) (30.06) (30.06) (31.12) Rental + service Revenue 65 61 124 Residential Revenue 10 17 45 Gross profit rental 47 48 94 Gross profit residential - 1 2 Revaluation (net) (38) 13 43 Net Profit (Loss) (38) 3 29 Inventory & residential land
Slide 24: GTC China
Real Estate GTC China GTC China (in EUR H1 - 2011 H1 - 2010 2010 million) (30.06) (30.06) (31.12) Rental + service Revenue 3 - 0.35 Residential Revenue 13 14 38 Revaluation (net of tax) 12 13 25 Net Profit (Loss) * 13** 7 15 Completed investment 59*** 110 property Investment property under - 83 - co
Slide 25: Tahal Projects & Tahal Assets
Water Infrastructure Tahal Projects & Tahal Assets Tahal Projects H1 - 2011 H1 - 2010 2010 Tahal Assets H1 - 2011 H1 - 2010 2010 (in EUR million) (30.06) (30.06) (31.12) (in EUR million) (30.06) (30.06) (31.12) Revenues 43 51 111 Revenues 36 31 65 Gross Profit 6 12 23 Gross Profit 9 6 16 EBITDA (4)
Slide 26: Retail Lending
Financial Services Retail Lending Bulgaria & H1 - 2011 H1 - 2010 2010 Romania (30.06) (30.06) (31.12) 100% (In EUR million) Net banking income* 15 20 37 Profit (Loss) (3) (3) (3) Total Equity 41 43 43 Total Assets 195 241 217 Equity / Assets 21% 18% 20% Cash & ST investments 13 11 18 Operational 30.
Slide 27: Maturity of liabilities
Maturity of liabilities Free Cash EUR millions & Cash Debt/loans maturing equivalents After June Before Before Before Before 30, 2015 & June 30, June 30, June June 30, Total till June 30, 2012 2013 30, 2014 2015 2029 Kardan N.V.* 119 - 70 118 118 319 625 GTC Group 161 125 192 237 137 948 1,639 KFS 2
Slide 28: Israeli Activities - Kardan Israel
Israeli Activities - Kardan Israel 28
Slide 29: Investments in Israel
Investments in Israel Automotive, Rental and Leasing Real Estate Communications & Technologies UMI - car importer & distributor (GM) Active in residential & commercial Investments focused on SME projects in Israel with strong growth potential Avis - car rental & leasing Kardan NV 11% 74% Kardan Isra
Slide 30: Thank You
Thank You Disclaimer This presentation has been prepared on behalf of Kardan N.V. solely for information purposes. It is not an investment advice or an offer or solicitation for the purchase or sale of any financial instrument. While reasonable care has been taken to ensure that the information cont
Slide 31: Investor Relations Contacts
Investor Relations Contacts The Netherlands Israel Director Investor Relations Caroline Vogelzang Ohad Lev vogelzang@kardan.nl lev@kardan.com Office: +31 20 305 0010 Office: + 972 3 608 3444 Mobile: +31 6 10 949 161 Mobile: + 972 54 333 0830 Kardan NV Kardan (Israel) Claude Debussylaan 30 154 Menach