TIDMNAT
RNS Number : 7665P
Nanette Real Estate Group N.V.
31 March 2009
For Immediate Release 31st March 2009
NANETTE REAL ESTATE GROUP N.V
(the "GROUP") or ("Nanette") or (the "Company")
Results for the year ended 31 December 2008
Nanette, the Central and Eastern European residential property development group
(AIM:NAT), with real estate projects in Poland, Hungary, Romania, Croatia and
Ukraine is very pleased to announce its results for the year ending 31 December
2008.
Financial Highlights
Ø Revenues amount to EUR26.5m (2007: EUR33.17m)
Ø PBT amounts to EUR6.3m (2007: EUR22.6m)
Ø Earnings per share: up to 3c (2007: 12c)
Ø EUR24.5m additional fund was raised through debentures
Ø S&P's affiliates Maalot's rating of BBB/NEGATIVE
Ø Moodys' affiliates Midrug's rating Baa1
Ø The business was cash positive at the year end, excluding the debentures
Operational Highlights
Ø Expansion of land-banks in 2008:14,223units(2007:12,903units)
Ø Expansion of investment properties in 2008: 617,333 sq.m in 4 projects
(2007:348,333 sq.m in 2 projects)
Ø Unit completions in2008: 776 (2007: 593)
Ø Continued expansion in Polish and Hungarian markets, new locations in Gdansk
and Wroclaw.
Ø New JV partnership with Rothschild's fund and the US AI fund
Ø Large scale local debt funding secured for Polish projects
Ø Major reorganization of Polish JV assets with Lehman brothers Real Estate
Partners
Ø Bond raising in Israel in the amount of Euro 24.5 M
Ø Strategic entry to the Ukraine
Ø Acquisition of additional plots of land in Poland, Romania and Hungary
Oscar Kazanelson, Chief Executive Officer, commented:
"The past year has been extremely challenging for all property developers
including us, although we continued to progress in the markets we operate. This
year we have increased our land bank by almost 40%, mainly through expansion in
the Hungarian market, where our group is well known and has a solid reputation,
exploiting beneficially the funds raised in our recent bond issues.
Shaul Lotan, Chairman, commented:
"This year's results demonstrate to our investors and the market that Nanette
continues to be a strong and solid company, despite of all the market turmoil
and financial crisis. During this year we included an additional investment
group as a strategic partner - the AI group and our existing partners, Lehman
Brothers Real Estate Partners ("LBREP") and Rothschild, have extended their
commitment to the joint venture by injecting more funds and increased their
participating share with us.
Despite the challenging market conditions we have proven our capabilities to
obtain an excellent level of project finance.
2009 will not be an easy year to the financial markets and for real estate
developers in particular, however we, at Nanette, have the confidence that our
projects are secured and we can continue to progress as we planned".
Nanette's management will be discussing their financial results and can be
available for questions in a conference call on Wednesday, 12.00, UK time, via
UK access number:
0-800-404-9501, using access code: 2131#.
Enquiries:
+----------------------------------+-------------------------+
| Nanette Real Estate Group | |
+----------------------------------+-------------------------+
| Shaul Lotan, Chairman | + 31 20 778 4141 |
+----------------------------------+-------------------------+
| Eyal Keltsh | +48 606141201 |
+----------------------------------+-------------------------+
| | |
+----------------------------------+-------------------------+
| KBC Peel Hunt | +44 (020) 7418 8900 |
+----------------------------------+-------------------------+
| Capel Irwin | |
+----------------------------------+-------------------------+
| Nicholas Marren | |
+----------------------------------+-------------------------+
| | |
+----------------------------------+-------------------------+
| Global Equity IR | +44-(0)7956 206 270 |
+----------------------------------+-------------------------+
| Amira Bardichev | |
+----------------------------------+-------------------------+
Chairman's Statement
I hereby present to you this year's results. It was a challenging year for us
and for most real estate developers, however we managed to complete the year
with positive results and to secure sufficient means to allow Nanette not only
to pass this period but also to be prepared for its future opportunities. We
started the year with the completion of the reorganization process in Poland and
a few months later we managed to conclude a bond fundraisings in Israel, which
has and will enable the Group to take advantage of the growth opportunities that
exist in Central and East Europe (CEE).
The Group was admitted to AIM in June 2006 with plots secured in Warsaw, Poland
and Budapest, Hungary. These locations have given the Group a solid base and
will continue to offer good opportunities. During 2008 we expanded our
operations in Hungary, Poland, Romania and Ukraine; we entered into Ukraine by
taking a 30% stake in a project done jointly with Olimpia Euro Construction.
Our partners in the projects, LBREP, Rothschild and our new partner AI group
from the US, continue to be supportive and all the projects funding needs have
been secured in full and on a timely manner.
The Group raised bonds on the Tel Aviv stock exchange in the amount of EUR 24.5
million; we now have access to significant funds to accelerate the growth of the
Group.
2008
The year has seen a significant increase in activity with approximately 776
completions (2007: 593). The completions were divided into 412 units in Poland
and 364 units in Hungary. We pride ourselves on providing a good quality product
in prime locations - as has been the case in both Warsaw and Budapest. Warsaw,
in particular, has a strong demand for good quality housing and provides
opportunities for us to make reasonable returns. The global market has become
tougher during the year and with the economic crisis around the world and in our
local region , sales have been down throughout the markets as, people are more
careful and very selective in choosing their apartment purchase. Our well known
reputation in Hungary and Poland is a major factor in our success, although
competition in the market has also intensified over the last year. Budapest is a
more mature market, but continues to provide opportunities for us as we
represent one of the major developers in the city.
At the end of 2006 we had 16 plots in 2 countries and by the end of 2007 we had
increased that number to 27 in 5 countries. The land-bank typically consists of
sites with varying planning consents and some will be held for several while
planning is approved or amended in order to provide the Group with the best
possible development.
The profit for the year is EUR6.3m (2007: EUR22.6m). The Group ended the year with
EUR22m of net cash.
Dividend
During 2008 Nanette distributed to its shareholders EUR11m of dividends, Nanette
has a dividend policy of distribution 30% of the annual net profit, the
management and the board agreed not to distribute any dividends this year in
order to maintain sufficient reserve of cash in the company.
Board
The Board of Directors was established in its current form following the
admission to AIM. I would like to thank the Executive team together with their
colleagues for the progress that has been made in 2008. I also appreciate the
time and commitment that the Non Executive Directors have provided to the Group
in what has proven to be a busy period. Mr. Oskar Kazanelson continues to
identify exciting opportunities and I would like to thank him especially for the
growth that has been achieved.
Due to market condition our board had unanimously agreed on a 10% salary cut for
all board members and position holders in the company.
This year, our board expanded with an additional non executive board member, Mr.
David Dekel with major background in economics and marketing.
Outlook
The world's financial crisis is far from being over, we believe that the region
will perform better than other markets and will provide considerable growth
opportunity even in these harsh times, due to the continued projected economic
growth and further economic liberalisation of the new EU members and candidates.
Whilst we will continue to develop sites in the cities in which we commenced
operations - in Poland: Warsaw, Gdansk, Wroclaw; in Hungary: Budapest; in
Romania: Bucharest and Timisuara; in Croatia: Zagreb; and in Ukraine: Kiev. Our
desire and appetite for growth has been implemented in our expansion. We will
maintain our light footed approach and consider other projects in the countries
we operate in the region if the project fits our requirements and investment
parameters. In addition, we may see opportunities to sell parcels of land which
we will do so if the available returns are sufficient.
The funds available to the Group are significant and together with our partners,
in specific sites, we are confident that the region provides exciting
opportunities to progress the Group.
The results announcement for the year ended 31 December 2008 is audited. The
financial information contained in this announcement does not constitute
statutory accounts for the year ended 31 December 2008. The statutory accounts
for the year ended 31 December 2008 will be finalized on the basis of the
financial information presented by the directors in the announcement and will be
| | | | | months | | | | years | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| Interest-bearing | | - | | 39,976 | | 64,738 | | 23,825 | | 128,539 |
| loans and | | | | | | | | | | |
| borrowings | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| Trade and | | - | | 4,700 | | - | | - | | 4,700 |
| other payables | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| Other | | - | | - | | 2,971 | | 1,393 | | 4,364 |
| financial | | | | | | | | | | |
| liabilities | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| | | Year ended December 31, 2007 |
+--------------------------------+-+--------------------------------------------------------------------+
| | | On | | Less | | 1-5 | | More | | Total |
| | | demand | | than | | years | | than | | |
| | | | | 12 | | | | 5 | | |
| | | | | months | | | | years | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| Interest-bearing | | - | | 33,499 | | 76,071 | | 30,647 | | 140,217 |
| loans and | | | | | | | | | | |
| borrowings | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| Trade and | | - | | 16,021 | | - | | - | | 16,021 |
| other payables | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
| Other | | - | | 781 | | - | | - | | 781 |
| financial | | | | | | | | | | |
| liabilities | | | | | | | | | | |
+--------------------------------+-+-----------+-+-----------+-+-----------+-+-----------+-+------------+
e.Political risk:
The Group has significant business in Central and Eastern Europe. Certain CEE
countries are considered as emerging markets. Political and economic changes in
these regions can have consequences for the Group's activities there, as well as
an impact on the results and financial positions of the Group. By close
monitoring of these businesses the board of management intends to limit the
risks of those changes.
f. Capital management:
The primary objective of the Group's capital management is to ensure that it
maintains a strong credit rating and healthy capital ratios in order to support
its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of
changes in economic conditions. To maintain or adjust the capital structure, the
Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. No changes were made in the objectives,
policies or processes during the years ended December 31, 2008 and 2007.
The Group monitors capital using a gearing ratio, which is net financial debt
divided by total equity plus net debt. The Group's policy is to keep the gearing
lower than 55%. The Group includes within net financial debt, interest-bearing
loans and borrowings, less cash and cash equivalents, and short-term deposits.
+------------------------------------------------+-+-------------+--+-------------+
| | | 2008 | | 2007 |
+------------------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------------------+-+-------------+--+-------------+
| Interest-bearing loans and | | 108,135 | | 121,390 |
| borrowings | | | | |
+------------------------------------------------+-+-------------+--+-------------+
| Less - cash and short-term deposits | | (44,713) | | (85,956) |
+------------------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------------------+-+-------------+--+-------------+
| Net financial debt | | 63,422 | | 35,434 |
+------------------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------------------+-+-------------+--+-------------+
| Total equity | | 79,903 | | 88,895 |
+------------------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------------------+-+-------------+--+-------------+
| Capital and net debt | | 143,325 | | 124,329 |
+------------------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------------------+-+-------------+--+-------------+
| Gearing ratio | | 44% | | 29% |
+------------------------------------------------+-+-------------+--+-------------+
g. Fair value of financial instruments:
Set out below is a comparison by category of carrying amounts and fair values of
all of the Group's financial instruments:
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| | | Carrying amount | | Fair value |
+-----------------------------------+-+---------------------+-+---------------------+
| | | 2008 | | 2007 | | 2008 | | 2007 |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Financial assets | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Cash | | 22,056 | | 70,905 | | 22,056 | | 70,905 |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Deposits | | 22,657 | | 15,051 | | 22,657 | | 15,051 |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Loan | | 16,746 | | 35,298 | | 16,641 | | 35,028 |
| notes | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Loans to | | 41,012 | | - | | 40,557 | | - |
| associates | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Financial liabilities | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Interest-bearing loans and | | | | | | | | |
| borrowings: | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Floating | | 50,230 | | 56,303 | | 50,050 | | 56,303 |
| rate | | | | | | | | |
| borrowings | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Fixed rate | | 57,905 | | 65,087 | | 21,258 | | 62,813 |
| borrowings | | | | | | | | |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
| Other liabilities | | 2,482 | | 715 | | 2,482 | | 715 |
+-----------------------------------+-+---------+-+---------+-+---------+-+---------+
Interest on financial instruments classified as floating rate is repriced at
intervals of less than six months. Interest on financial instruments classified
as fixed rate is fixed until the maturity of the instrument. The other financial
instruments of the Group that are not included in the above tables are
non-interest bearing and are therefore not subject to interest rate risk.
NOTE 20:- MARKETING, GENERAL AND ADMINISTRATIVE EXPENSES
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| | | Year ended December 31, |
+-----------------------------------------+-+---------------------------------------+
| | | 2008 | | 2007 | | 2006 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| | | | | | | |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Professional fees | | 1,462 | | 1,122 | | 605 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Management fees | | 396 | | 71 | | 295 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Rent and office maintenance | | 620 | | 320 | | 200 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Marketing | | 514 | | 814 | | 490 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Salaries (including director's | | 2,260 | | 2,643 | | 907 |
| fees (1)) | | | | | | |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Share-based compensation | | - | | 47 | | 275 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Travel expenses | | 284 | | 356 | | 113 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| Other | | 815 | | 593 | | 473 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| | | | | | | |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
| | | 6,351 | | 5,966 | | 3,358 |
+-----------------------------------------+-+-----------+-+-----------+-+-----------+
(1) Director's fees:
+------------------------------------+-+----------+-+----------+--+----------+
| | | 2008 | | 2007 | | 2006 |
+------------------------------------+-+----------+-+----------+--+----------+
| | | | | | | |
+------------------------------------+-+----------+-+----------+--+----------+
| Director's fees *) | | 1,113 | | 989 | | 545 |
+------------------------------------+-+----------+-+----------+--+----------+
| Directors insurance | | 45 | | 45 | | 22 |
+------------------------------------+-+----------+-+----------+--+----------+
| Bonuses | | 26 | | 646 | | 54 |
+------------------------------------+-+----------+-+----------+--+----------+
| | | | | | | |
+------------------------------------+-+----------+-+----------+--+----------+
| | | 1,184 | | 1,680 | | 621 |
+------------------------------------+-+----------+-+----------+--+----------+
*) The executive director's and non executive fees (including bonuses) for
the year 2008 are as follows:
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | 2008 |
+-----+-----------------+-+-----------------------------------------------------------------------+
| | | |Outstanding | | Fees in | | Bonus in | | Share | | Total |
| | | | amount of | |thousands | |thousands | | based | | for |
| | | | options | | | | | |compensation | |the year |
| | | | | | | | | |in thousands | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Executive | | | | | | | | | | |
| | directors | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 1. | O.Katzenelson, | | - | | 485 | | - | | - | | 485 |
| | CEO | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 2. | Shaul Lotan, | | - | | 181 | | - | | - | | 181 |
| | Chairman | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 3. | Ran Yaakobs, | | 500,000 | | 190 | | 16 | | - | | 206 |
| | CFO *) | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 500,000 | | 856 | | 16 | | - | | 872 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Non-executive | | | | | | | | | | |
| | directors | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 1. | Yosef Zimer *) | | 500,000 | | 55 | | 10 | | - | | 65 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 2. | Ron Hadasi | | - | | 24 | | - | | - | | 24 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 3. | Gilly Jacoby | | - | | 29 | | - | | - | | 29 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 4. | Karl Ferenc | | - | | 30 | | - | | - | | 30 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 5. | Eyal Keltsh | | - | | 77 | | - | | - | | 77 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 6. | Gerald Parkes | | - | | 24 | | - | | - | | 24 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 7. | David Dekel | | - | | 18 | | - | | - | | 18 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 500,000 | | 257 | | 10 | | - | | 267 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 1,000,000 | | 1,113 | | 26 | | - | | 1,139 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
*) All the options were granted in 2006; in 2008 no new options were granted
or exercised.
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | 2007 |
+-----+-----------------+-+-----------------------------------------------------------------------+
| | | |Outstanding | | Fees in | | Bonus in | | Share | | Total |
| | | | amount of | |thousands | |thousands | | based | | for |
| | | | options | | | | | |compensation | |the year |
| | | | | | | | | |in thousands | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Executive | | | | | | | | | | |
| | members | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 1. | O.Katzenelson, | | - | | 447 | | 420 | | - | | 867 |
| | CEO | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 2. | Shaul Lotan, | | - | | 179 | | 103 | | - | | 282 |
| | Chairman | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 3. | Ran Yaakobs, | | 500,000 | | 144 | | 88 | | 10 | | 242 |
| | CFO *) | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 500,000 | | 770 | | 611 | | 10 | | 1,391 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Non-executive | | | | | | | | | | |
| | members | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 1. | Yosef Zimer *) | | 500,000 | | 51 | | 35 | | 9 | | 95 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 2. | Shimon | | - | | 21 | | - | | - | | 21 |
| | Katzenelson | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 3. | Ron Hadasi | | - | | 9 | | - | | - | | 9 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 4. | Gilly Jacoby | | - | | 23 | | - | | - | | 23 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 5. | Karl Ferenc | | - | | 25 | | - | | - | | 25 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 6. | Eyal Keltsh | | - | | 72 | | - | | - | | 72 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 7. | Gerald Parkes | | - | | 18 | | - | | - | | 18 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | - | | 219 | | 35 | | 9 | | 263 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 1,000,000 | | 989 | | 646 | | 19 | | 1,654 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
*) All the options were granted in 2006; in 2007, no new options were granted
or exercised.
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | 2006 |
+-----+-----------------+-+-----------------------------------------------------------------------+
| | | |Outstanding | | Fees in | | Bonus in | | Share | | Total |
| | | | amount of | |thousands | |thousands | | based | | for |
| | | | options | | | | | |compensation | |the year |
| | | | | | | | | |in thousands | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Executive | | | | | | | | | | |
| | members | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 1. | O.Katzenelson, | | - | | 241 | | - | | - | | 241 |
| | CEO | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 2. | Shaul Lotan, | | - | | 135 | | - | | - | | 135 |
| | Chairman | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 3. | Ran Yaakobs, | | 500,000 | | 75 | | 32 | | 55 | | 162 |
| | CFO | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 500,000 | | 451 | | 32 | | 55 | | 538 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Non-executive | | | | | | | | | | |
| | members | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 1. | Yosef Zimer | | 500,000 | | 26 | | 22 | | 55 | | 103 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 2. | Shimon | | - | | 9 | | - | | - | | 9 |
| | Katzenelson | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 3. | Jon Kempster | | - | | 18 | | - | | - | | 18 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 4. | Gilly Jacoby | | - | | 13 | | - | | - | | 13 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 5. | Karl Ferenc | | - | | 13 | | - | | - | | 13 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| 6. | Eyal Keltsh | | - | | 15 | | - | | - | | 15 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 500,000 | | 94 | | 22 | | 55 | | 171 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | | | | | | | | | | | |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
| | Total | | 1,00,000 | | 545 | | 54 | | 110 | | 709 |
+-----+-----------------+-+-------------+-+-----------+-+-----------+-+--------------+-+----------+
NOTE 21:- FINANCE INCOME (COSTS)
+-----------------------------------+-+----------+-+----------+--+----------+
| | | Year ended December 31, |
+-----------------------------------+-+-------------------------------------+
| | | 2008 | | 2007 | | 2006 |
+-----------------------------------+-+----------+-+----------+--+----------+
a. Finance costs:
+----------------------------------+-+-------------+-+-------------+--+----------+
| | | | | | | |
+----------------------------------+-+-------------+-+-------------+--+----------+
| Interest expense | | (10,476) | | (4,983) | | (3,217) |
+----------------------------------+-+-------------+-+-------------+--+----------+
| Exchange differences | | (19,109) | | (11,564) | | (1,940) |
+----------------------------------+-+-------------+-+-------------+--+----------+
| Bank charges and other, | | (1,163) | | (1,015) | | (498) |
| net | | | | | | |
+----------------------------------+-+-------------+-+-------------+--+----------+
| | | | | | | |
+----------------------------------+-+-------------+-+-------------+--+----------+
| | | (30,748) | | (17,562) | | (5,655) |
+----------------------------------+-+-------------+-+-------------+--+----------+
| Capitalized borrowing | | 3,063 | | 1,528 | | 2,053 |
| costs | | | | | | |
+----------------------------------+-+-------------+-+-------------+--+----------+
| | | | | | | |
+----------------------------------+-+-------------+-+-------------+--+----------+
| | | (27,685) | | (16,034) | | (3,602) |
+----------------------------------+-+-------------+-+-------------+--+----------+
b. Finance income:
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| | | | | | | |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| Financial assets at fair | | 131 | | - | | - |
| value through profit and | | | | | | |
| loss | | | | | | |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| Gain on early repayment | | 7,937 | | - | | - |
| of debentures | | | | | | |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| Interest income | | 10,505 | | 7,259 | | 915 |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| Exchange differences | | 6,699 | | 16,395 | | 4,920 |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| | | | | | | |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
| | | 25,272 | | 23,654 | | 5,835 |
+-----------------------------------+-+-----------+-+-----------+--+-----------+
NOTE 22:- OTHER INCOME AND OTHER EXPENSES
a. Other income:
+------------------------------------+-+-----------+-+-----------+-+-----------+
| | | Year ended December 31, |
+------------------------------------+-+---------------------------------------+
| | | 2008 | | 2007 | | 2006 |
+------------------------------------+-+-----------+-+-----------+-+-----------+
| | | | | | | |
+------------------------------------+-+-----------+-+-----------+-+-----------+
| Gain on sale of interests in | | 6,527 | | 8,314 | | 4,183 |
| subsidiaries and joint ventures | | | | | | |
+------------------------------------+-+-----------+-+-----------+-+-----------+
| Other | | (197) | | 307 | | 33 |
+------------------------------------+-+-----------+-+-----------+-+-----------+
| | | | | | | |
+------------------------------------+-+-----------+-+-----------+-+-----------+
| | | 6,330 | | 8,621 | | 4,216 |
+------------------------------------+-+-----------+-+-----------+-+-----------+
b. Year ended December 31, 2008:
As described in Note 14, the Company sold its wholly-owned subsidiary to a
jointly controlled company and deferred the recognition of the gain on the sale
until the loan, which was recorded in respect of this sale, was collected.
During the third quarter, the Company collected the loan and recognized the gain
in the amount of approximately EUR 5,300.
NOTE 23:- EARNINGS PER SHARE
Earnings per share are calculated by dividing the profit attributable to equity
holders of the Company by the weighted average number of Ordinary shares in
issue after giving effect to the split:
+-----------------------------------------+-+------------+-+------------+--+------------+
| | | Year ended December 31, |
+-----------------------------------------+-+-------------------------------------------+
| | | 2008 | | 2007 | | 2006 |
+-----------------------------------------+-+------------+-+------------+--+------------+
| | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| Profit attributable to | | 5,529 | | 19,270 | | 7,031 |
| equity holders of the | | | | | | |
| parent | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| Weighted average number of | | 171,693 | | 166,342 | | 126,495 |
| Ordinary shares outstanding | | | | | | |
| (thousands) | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| Effect of dilution: | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| Share options | | 910 | | 1,811 | | 1,621 |
+-----------------------------------------+-+------------+-+------------+--+------------+
| | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| Adjusted weighted average | | 172,603 | | 168,153 | | 128,116 |
| number of Ordinary shares | | | | | | |
| for diluted earnings per | | | | | | |
| share | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
| Profit per share (basic and | | 0.03 | | 0.12 | | 0.06 |
| diluted) (EUR per share) | | | | | | |
+-----------------------------------------+-+------------+-+------------+--+------------+
NOTE 24:- RELATED PARTY DISCLOSURES
The financial statements include the financial statements of Nanette Real Estate
Group N.V. and the subsidiaries listed in the Appendix to the consolidated
financial statements.
a. Transactions with related parties:
1. Composition:
+---------------------------------+-+----------+--+----------+--+----------+
| | | Year ended December 31, |
+---------------------------------+-+--------------------------------------+
| | | 2008 | | 2007 | | 2006 |
+---------------------------------+-+----------+--+----------+--+----------+
| General and | | | | | | |
| administrative | | | | | | |
| expenses: | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| Key | | 1,139 | | 1,654 | | 709 |
| management | | | | | | |
| personnel | | | | | | |
| of the | | | | | | |
| Group | | | | | | |
| (including | | | | | | |
| directors' | | | | | | |
| fees *) | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| Shareholders | | 288 | | 244 | | 377 |
+---------------------------------+-+----------+--+----------+--+----------+
| | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| | | 1,427 | | 1,898 | | 1,086 |
+---------------------------------+-+----------+--+----------+--+----------+
| Finance income: | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| Proportionately | | 1,606 | | 1,510 | | 405 |
| consolidated | | | | | | |
| entities | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| Finance costs: | | | | | | |
+---------------------------------+-+----------+--+----------+--+----------+
| Shareholders | | 914 | | 705 | | 2 |
+---------------------------------+-+----------+--+----------+--+----------+
*) Compensation of key management personnel composed as follows:
+----------------------------+-+----------+--+----------+--+----------+
| | | 2008 | | 2007 | | 2006 |
+----------------------------+-+----------+--+----------+--+----------+
| | | | | | | |
+----------------------------+-+----------+--+----------+--+----------+
| Short-term | | 1,139 | | 1,635 | | 599 |
| benefits | | | | | | |
+----------------------------+-+----------+--+----------+--+----------+
| Share-based | | - | | 19 | | 110 |
| compensation | | | | | | |
+----------------------------+-+----------+--+----------+--+----------+
| | | | | | | |
+----------------------------+-+----------+--+----------+--+----------+
| | | 1,139 | | 1,654 | | 709 |
+----------------------------+-+----------+--+----------+--+----------+
2. Management fees in the amount of EUR 272 to a company controlled by key
management personnel were capitalized to inventory cost in 2008 (2007 - EUR 379).
3. Agreements with Lehman (a shareholder), see Note 15b(5).
b. Balances with related parties:
+--------------------------------------------+---------+--+------------+-+------------+
| | | December 31, |
+--------------------------------------------+------------+---------------------------+
| | | 2008 | | 2007 |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Accounts receivable - other | | 898 | | - |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Highest balance during the year | | 898 | | - |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Other financial assets: | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Proportionately consolidated | | 16,615 | | 28,093 |
| entity (1) | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Shareholder | | - | | 835 |
+------------------------------------------------------+--+------------+-+------------+
| Other | | - | | 6,370 |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| | | 16,615 | | 35,298 |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Loans to associates (2) | | 41,012 | | - |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Short-term loans from shareholder (3) | | 5,517 | | 3,849 |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Long-term loans before deducting current | | - | | 10,603 |
| maturities from shareholder | | | | |
+------------------------------------------------------+--+------------+-+------------+
| | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Liabilities - other: | | | | |
+------------------------------------------------------+--+------------+-+------------+
| Shareholder | | 345 | | 96 |
+--------------------------------------------+---------+--+------------+-+------------+
(1) Terms and conditions of loans to proportionately consolidated entity:
+------------------------------------+-+-------------+--+-------------+
| | | Weighted | | December |
| | | average | | 31, |
| | | interest | | 2008 |
| | | rate (*) | | |
+------------------------------------+-+-------------+--+-------------+
| | | % | | |
+------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------+-+-------------+--+-------------+
| In Euros | | 5.12 | | 6,990 |
+------------------------------------+-+-------------+--+-------------+
| In U.S. dollars | | - | | 1,142 |
+------------------------------------+-+-------------+--+-------------+
| In Hungarian Forint | | 13 | | 8,483 |
+------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------+-+-------------+--+-------------+
| | | | | 16,615 |
+------------------------------------+-+-------------+--+-------------+
(*) Fixed interest rate as of December 31, 2008.
The replacement dates of these loans have not yet been determined.
(2) For terms and conditions (see Note 8f).
(3) Terms and conditions of loans from shareholders:
+------------------------------------+-+-------------+--+-------------+
| | | Weighted | | December |
| | | average | | 31, |
| | | interest | | 2008 |
| | | rate | | |
+------------------------------------+-+-------------+--+-------------+
| | | % | | |
+------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------+-+-------------+--+-------------+
| In Euros (1) | | 5.89% | | 3,850 |
+------------------------------------+-+-------------+--+-------------+
| In Hungarian Forint (2) | | 10.50% | | 1,667 |
+------------------------------------+-+-------------+--+-------------+
| | | | | |
+------------------------------------+-+-------------+--+-------------+
| | | | | 5,517 |
+------------------------------------+-+-------------+--+-------------+
(1) Interest in respect of these loans is based on EURIBOR, with a margin of
3% and capped at 7%.
(2) Interest in respect of these loans is based on BUBOR, with a margin of
0.50%.
The replacement dates of these loans have not yet been determined.
NOTE 25:- SEGMENT INFORMATION
a. General:
The Group operates internationally and its organizational structure is based on
geographical areas. Accordingly, the division of operations in this manner
represents the basis according to which the Group reports data for management
purposes. The segments are determined according to the countries from which the
Group's revenues are generated. The Company has two reportable segments: Hungary
and Poland.
b. Operating segment data:
As of December 31, 2008 and for the year then ended:
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | Hungary | | Poland | | Other | | Consolidated |
| | | | | *) | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Income | | | | | | | | |
| statement | | | | | | | | |
| data: | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Revenues | | 18,322 | | 8,047 | | 160 | | 26,529 |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Segment | | 3,806 | | 2,811 | | (355) | | 6,262 |
| results - | | | | | | | | |
| operating | | | | | | | | |
| profit | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Unallocated | | | | | | | | 3,856 |
| general | | | | | | | | |
| corporate | | | | | | | | |
| expenses | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Operating | | | | | | | | 2,406 |
| profit | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Finance | | | | | | | | (27,685) |
| costs | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Finance | | | | | | | | 25,272 |
| income | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Other income | | | | | | | | 6,330 |
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
| Profit | | | | | | | | 6,323 |
| before taxes | | | | | | | | |
| on income | | | | | | | | |
+-------------------------+-+------------+-+-----------+-+----------+-+-----------------+
As of December 31, 2007 and for the year then ended:
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| | | Hungary | | Poland | | Other | | Consolidated |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Income | | | | | | | | |
| statement data: | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Revenues | | 18,101 | | 15,007 | | 66 | | 33,174 |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Segment results | | 3,602 | | 6,974 | | (288) | | 10,288 |
| - operating | | | | | | | | |
| profit | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Unallocated | | | | | | | | 3,894 |
| general | | | | | | | | |
| corporate | | | | | | | | |
| expenses | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Operating | | | | | | | | 6,394 |
| profit | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Finance costs | | | | | | | | (16,034) |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Finance income | | | | | | | | 23,654 |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Other income | | | | | | | | 8,621 |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
| Profit before | | | | | | | | 22,635 |
| taxes on income | | | | | | | | |
+----------------------------+-+------------+--+-----------+--+----------+--+-----------------+
*) In the second quarter of 2008, jointly controlled Polish companies that
were proportionately consolidated in previous periods were transferred to a
holding company in which the Company accounts for its interest using the equity
method (see Note 8e). Accordingly, commencing from the second quarter of 2008,
segment revenues for Poland no longer include the revenues and results of these
Polish companies. Segment results include the share in profit of the holding
company (associate).
As of December 31, 2006 and for the year then ended:
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | Hungary | | Poland | | Consolidated |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Income statement | | | | | | |
| data: | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Revenues | | 21,203 | | 10,666 | | 31,869 |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Segment results - | | 2,500 | | 2,448 | | 4,948 |
| operating profit | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Unallocated general | | | | | | 1,957 |
| corporate expenses | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Operating profit | | | | | | 2,991 |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Finance costs | | | | | | (3,602) |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Finance income | | | | | | 5,835 |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Other income | | | | | | 4,216 |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
| Profit before taxes | | | | | | 9,440 |
| on income | | | | | | |
+----------------------------------+-+------------+--+-----------+--+-----------------+
NOTE 26:-EVENTS SUBSEQUENT TO BALANCE SHEET DATE
a. Subsequent to the balance sheet date, the Company purchased its own
debentures (series B and series C) on the Tel-Aviv Stock Exchange, at par value
of NIS 2,416,577 and NIS 10.1 million, respectively (approximately EUR 2.4
million), for a total consideration of NIS 0.8 million and NIS 5.2 million
(approximately EUR 1.1 million), respectively. The profit from these purchases was
recognized in the income statement in the first quarter of 2009.
b. During February 2009, the Company (through a wholly-owned subsidiary)
completed the purchase of an additional 15% of the issued and outstanding share
capital of Osnova-C (see Note 8d), for a nominal consideration of approximately
$ 1 (EUR 1). The Company also granted loans to Osnova-C, in the total amount of $
6,350 thousand (EUR 4,536) includes $ 350 which were required by the Osnova-C as
an additional Investment from the Shareholders, at an annual interest rate of
LIBOR, with a margin of 5%. Subsequent to this purchase, the Company holds 30%
of the share capital of Osnova-C.
c. On March 25, 2009, Midrug Ltd. downgraded credit rating of the debentures
(series B and C) to local rating of Baa1.
LIST OF SUBSIDIARIES, PROPORTIONATELY CONSOLIDATED COMPANIES
AND ASSOCIATES
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| | | | | Shareholding and control |
+--------------------------------------+-+------------------------+--+--------------------------------------+
| | | | | December 31, |
+--------------------------------------+-+------------------------+--+--------------------------------------+
| Name of company | | Country | | 2008 | | 2007 | | 2006 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| | | | | % |
+--------------------------------------+-+------------------------+--+--------------------------------------+
| Subsidiaries: | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Investment | | Poland | | 70.10 | | 70.10 | | 70.10 |
| Sp.z.o.o. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Thokoly Udvar Kft. | | Hungary | | 100.00 | | 100.00 | | 89.33 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Zold Park Haz Kft. | | Hungary | | 77.50 | | 77.50 | | 77.50 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Foodex 2003 Kft. | | Hungary | | 100.00 | | 100.00 | | 57.50 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Karolina Udvar Kft. | | Hungary | | 100.00 | | 100.00 | | 57.50 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| MZM Properties Sp.z.o.o. | | Poland | | - | | - | | 90.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg B.V. | | Netherlands | | 100.00 | | 100.00 | | 89.33 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Orgod Sp.z.o.o. | | Poland | | 100.00 | | 100.00 | | 46.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Galicia Sp.z.o.o. | | Poland | | 100.00 | | 80.00 | | 80.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Morena Sp.z.o.o. | | Poland | | - | | - | | 80.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| IMMO Prop. Kft. | | Hungary | | 100.00 | | 100.00 | | 57.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Kamaraerdo Kft. | | Hungary | | 100.00 | | 100.00 | | 100.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Construction | | Hungary | | 100.00 | | 100.00 | | 100.00 |
| Kft. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Star Development | | Poland | | 100.00 | | 100.00 | | - |
| Sp.z.o.o. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Real Estate | | Romania | | 100.00 | | 100.00 | | - |
| Development Srl. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette North Star | | Romania | | 100.00 | | 100.00 | | - |
| Properties Srl. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| California Group Srl. | | Romania | | 100.00 | | 100.00 | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Borovje D.O.O. | | Croatia | | 100.00 | | 100.00 | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Etgar Financial Services | | Israel | | 100.00 | | - | | - |
| Ltd. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Albert Ingatian | | Hungary | | 100.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Paty Plots | | Hungary | | 100.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Holdings | | Cyprus | | 100.00 | | - | | - |
| (Ukraine) Ltd. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Laniste D.O.O. | | Croatia | | 100.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Nekretnine | | Croatia | | 100.00 | | - | | - |
| D.O.O. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Construction rom | | Romania | | 100.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Proportionately | | | | | | | | |
| consolidated companies: | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Palacowa Sp.z.o.o. | | Poland | | - | | 50.00 | | 50.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| OK Investment Sp.z.o.o. | | Poland | | 50.00 | | 50.00 | | 50.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Wilanow II | | Poland | | - | | 42.50 | | 32.50 |
| Sp.z.o.o. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Gondola HAZ K.f.t. | | Hungary | | 50.00 | | 50.00 | | 50.00 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Real Prop House K.f.t. | | Hungary | | 50.01 | | 50.01 | | 50.01 |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| MZM Properties Sp.z.o.o. | | Poland | | - | | 45.00 | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Morena Sp.z.o.o. | | Poland | | - | | 40.00 | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg City Apartments | | Poland | | - | | 37.50 | | - |
| Sp.z.o.o. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Pipera | | Romania | | 50.00 | | 50.00 | | - |
| Properties Srl. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette City Gate | | Romania | | 50.00 | | 50.00 | | - |
| Timisoara Srl. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Heights Timisoara | | Romania | | 50.00 | | 50.00 | | - |
| Srl. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Nanette Bucharest | | Romania | | 50.00 | | 50.00 | | - |
| Properties | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| EDR Construction Brasov | | Holland | | 55.00 | | - | | - |
| B.V. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| UKRA Real Estate B.V. | | Holland | | 50.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Subsidiary of UKRA Real | | | | | | | | |
| Estate B.V.: | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| PP Plots | | Hungary | | 100.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Proportionately | | | | | | | | |
| consolidated company of | | | | | | | | |
| EDR Construction Brasov | | | | | | | | |
| B.V.: | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Taltoring | | Hungary | | 50.00 | | - | | - |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Proportionately | | | | | | | | |
| consolidated companies | | | | | | | | |
| of Robyg B.V.: | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
| Robyg Development | | Poland | | - | | 50.00 | | 50.00 |
| Sp.z.o.o. | | | | | | | | |
+--------------------------------------+-+------------------------+--+-----------+--+-----------+--+--------+
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | Shareholding and control |
+-------------------------------------+-+--------------------+--+--------------------------------------+
| | | | | December 31, |
+-------------------------------------+-+--------------------+--+--------------------------------------+
| Name of company | | Country | | 2008 | | 2007 | | 2006 |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | % |
+-------------------------------------+-+--------------------+--+--------------------------------------+
| | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Subsidiary of MZM | | | | | | | | |
| Properties Sp.z.o.o. - | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Park Sp.z.o.o. | | Poland | | 99.00 | | 70.00 | | 70.00 |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Subsidiary of Robyg | | | | | | | | |
| Morena Sp.z.o.o.: | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Piekarnicza Sp.z.o.o. | | Poland | | 100.00 | | 100.00 | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Proportionately | | | | | | | | |
| consolidated company of | | | | | | | | |
| Kamaraerdo K.f.t.: | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Kamara-Projekt K.f.t. | | Hungary | | 50.00 | | 50.00 | | 50.00 |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Associated companies of | | | | | | | | |
| Nanette Holdings | | | | | | | | |
| (Ukraine) Ltd.: | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Olimpia Real Estate LLC | | Ukraine | | 15.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Osanova C. | | Ukraine | | 15.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Associated company: | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg S.A. | | Poland | | 48.18 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Subsidiaries of Robyg | | | | | | | | |
| S.A. | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| MZM Properties | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Morena Sp.z.o.o. | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Palacowa Sp.z.o.o. | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Wilanow II | | Poland | | 85.00 | | - | | - |
| Sp.z.o.o. | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg city Apartments | | Poland | | 75 | | - | | - |
| Sp.z.o.o. | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Development | | Poland | | 100.00 | | - | | - |
| SP.z.o.o. | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Jagondo Estates | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Marina Tower | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Wroclaw I | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Wroclaw II | | Poland | | 100.00 | | - | | - |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
| Robyg Zarzadzanie | | Poland | | 100.00 | | - | | - |
| Zp.z.o.o. | | | | | | | | |
+-------------------------------------+-+--------------------+--+-----------+--+-----------+--+--------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Nanette Real Estate N.V (LSE:NAT)
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Nanette Real Estate N.V (LSE:NAT)
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