Transcript Document

November 2007
Disclaimer
The company's presentation is intended for institutional investors and underwriters only.
The presentation does not constitute an offer to purchase the company's securities and
was strictly intended to provide information only to institutional investors and underwriters.
Any forecast and/or statement regarding the future, which is included in this presentation,
are not a matter of fact but rather based on the evaluation of the company's
management, at its discretion. At the same time, these forecasts and/or statements are
based on the company's expectations at the date of the presentation and inherently hold
in store a number of uncertainties and risks that should be considered.
Consequently, it should be noted that the actual results may differ substantially from the
expectations in those forecasts and/or statements referring to the future, as a result of
various factors.
In addition, forecasts and/or statements relating to the future are referring to the date of
this presentation only and the company is under no obligation to update or alter any
forecast and/or statement relating to the future to reflect events or circumstances
occurring after the date of this presentation.
1
Operating Global Conglomerate
Market Cap of 21.0 billion NIS – 6th largest on the TASE
13 Public companies traded in Israel and worldwide
Main Shareholders: Lev Leviev – 74.94% Free Float – 25.06%
Credit Rating: Maalot
(S&P Affiliation):
Midroog (Moody’s Affiliation):
ISRAEL
AMERICA
Russia & CIS
AA
Aa2
Europe
Asia
2
Business Areas
Africa Israel Investments Ltd.
Construction &
Infrastructure
Energy
Related
Industries
Financial
Services
Residential
Residential
Commercial
Offices
Petrol stations
Steel
Other Business
Areas
Commercial
Light Railway
Refineries
Ceramics
Real Estate
Telecommunication
& Media
Retail
Offices
Private Prison
Oil pipelines
Greenhouses
Tourism & leisure
Fashion
Hotels
Roads & Bridges
Asphalt
3
The Corporate Value Triangle
Entrepreneurship, Innovation, Business Assets
Financing capabilities
Entrepreneurship, Innovation, Business Assets
4
Global Presence – (2007)
Europe (East & Center)
Czech Republic
Germany
Hungary
Bulgaria
Romania
Latvia
Poland
Serbia
North America
USA
Canada
Russia &CIS
Russia
Kazakhstan
Ukraine
Asia
Latin America
Panama
Argentina
Real Estate
China
India
Philippines
Thailand
Israel
Construction &
Infrastructure
Energy
.
Related
.
Industries
Other
Business
5
Corporate Strategy Building Blocks
The Business Matrix
Global Expansion while maintaining a strong and meaningful presence in Israel
Focus on large Scale Projects
Leveraging core competencies by Active Corporate involvement
Build up sustainable net income on a solid basis
6
Financial Snapshot
2006
2005
5,386
4,876
4,258
3,152
Gross Profit
633
1,498
1,424
724
Operating Profit
558
1,433
1,377
686
Net Earnings
4,007
844
649
406
Total Assets
38,504
18,778
15,535
10,716
NIS Millions
Revenues
Q-3/2007
2004
7
Total Assets (NIS Millions)
38,504
18,778
15,535
10,716
5,444
2002
7,324
2003
2004
2005
2006
30.9.07
8
Revenues (NIS Millions)
4,876
4,258
5,386
3,153
2,616
2,227
2002
2003
2004
2005
2006
30.9.07
9
Net Profit (NIS Millions)
4,007
115
2002
121
2003
406
2004
649
2005
844
2006
30.9.07
10
Share Price Performance Since 2002
NIS
600
500
1,010%
400
Africa Israel
352%
300
253%
200
103%
100
2002
TASE 25
2%
2003
Dividends Distributed
Million NIS
2004
2005
2002
191
2003
137
2006
2007
2004
2005
2006
2007
180
200
200
360
11
Market Cap (NIS Millions)
AFIL‘S
Share
AFRICA ISRAEL
Value to AFIL
(20.11.07)
21,630
AFI Development
71.7%
17,047
Africa Israel Properties
69.9%
2,544
Africa Israel Residences
74.9%
976
Danya Cebus
74.8%
1,081
Africa Israel Hotels
86.1%
337
Africa Israel industries
67.5%
323
Alon
26.1%
2,415
Net Debt 30.9.07
(7,549)
12
Business Areas – Real Estate World Wide
Residential
Hotels
Real
Estate
Commercial
Offices
ISRAEL
AMERICA
Russia & CIS
Europe
Asia
Real Estate- Russia & CIS
AFI Development :
Public company traded on the LSE
71.70% held by Africa Israel Investments
Market Cap of 15.3 billion NIS
Since 2001
Portfolio Inc. 27 projects
Land Bank of 3.9 million sq m
Over 1.2 million sq m currently under construction
Focus on mega real estate projects incl.
Residential
Offices
Commercial (Shopping Malls)
Hotels
Infrastructure
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Real Estate - Russia & CIS
Tverskaya Shopping Center
71,000 .sq m
Tverskaya Zastava Plaza I
63,000 .sq m
Ozerkovskaya Embankment
90,000 .sq m
Tverskaya Zastava Plaza II
100,000 .sq m
Otradnoye (Odinzovo)
490,000 .sq m
Moscow City Center Core
110,000 .sq m
Four Winds
41,000 .sq m
15
Russia & CIS - Moscow City
Moscow City - Shopping Centre
Located in the heart of Moscow
comprises over 111,000 sq m of retail and leisure space
Expected completion by Q1 2009
16
Russia & CIS - Tverskaya Zastava
8.1 hectares in the Tverskoy district close to
Belorussky station and 3 km from the Kremlin
Over 450,000 sq m of gross leasable/sellable
area across seven mixed-use commercial and
residential developments
Expected to be largest underground shopping
centre in Moscow
Over 190,000 sq m of Class A office space
across various buildings located in the
proximity of the square
17
Russia & CIS - Tverskaya Zastava
18
America
Doing business in North America since 2002
Over 3.0 million sq m under construction
US presence: New York, Miami, Los Angeles, South Carolina, Las
Vegas
Focus on real estate projects incl.
Condos and luxury apartments
Offices
Commercial
Hotels
19
North America
 New York
 Miami
Marquiz
108,000 .sq m
85 Adams
12,000 .sq m
 Las Vegas
20 Pine
72,000 .sq m
Atlantic Court LLC
16,000 .sq m
 Los Angeles
14 Wall St
100,000 .sq m
New York Times
72,000 .sq m
 South Carolina
88 Leonard St.
40,000 .sq m
Apthorp
42,500 .sq m
The clock Tower
26,000 .sq m
20
North America - New York Times
This project is a conversion of a historic office
building to a class A office building with a retail
corridor on the ground and cellar levels.
The Times Building is located in the heart of
Times Square, between 43rd and 44th Street
off of Broadway
Use: Multi-purpose – Commercial office & retail
.
Size: 777,000 SF.
Number of Floors: 15
21
North America - The Clock Tower
This project is a conversion of a historic office
building to a hotel/condo project
Located: over Madison Square Park on 24th
Street and Madison
Use: Multi-purpose: residential and commercial
Size: 275,000 SF.
Number of Floors: 41
Status: Planning
22
North America - The Apthorp
This project is a multi-staged conversion of a
historic former apartment building
Located: in the heart of the Upper Westside, on
Broadway, between 78th and 79th Street
Use: Multi-purpose – residential and retail
Restoration: 445,120 SF.
Number of Units: 163
Status: Construction
23
Europe
Doing business in Europe since 1998
Over 4 million sq m building rights (total gross), Over 1.2 million sq m are currently
under construction
Portfolio now includes 31 projects in 8 countries (Czech Republic, Serbia, Romania,
Bulgaria,Germany, Hungary, Poland & Latvia)
Focuses on real estate projects incl.
Residential (brand name “Tulipa”)
Offices
Commercial & Shopping Malls (brand name “Palace”)
Hotels
Business parks
24
Europe
Czech Republic
Palace Flora
38,000 .sq m
Korunni Dvur
(253 units & 7,000 .sq m)
Broadway Palace
7,000 .sq m
Romania
Cotroceni Park, Bucharest
194,000 .sq m
Cotroceni Park, Bucharest
194,000 .sq m
Airport City by Belgrade
120,000 .sq m
Malina Gardens – Bulgaria
68,000 .sq m
Pipera Gardens, Bucharest
230,000 .sq m
Serbia
Bulgaria
Vitosha Gardens – Bulgaria
18,000 .sq m
25
Europe
Germany
North & west Germany
110,000 .sq m
Berlin
50,000 .sq m
Poland
Wilanow One Warsaw
Osiedle Europeski
Krakow 2,400 units
Latvia
Soleville – Riga
2,350 units
Metropolia – Riga
550 units
26
Europe - Cotroceni Park, Bucharest
Shopping Centre and 5 office buildings
194,000 million sq m
50% held by Africa Israel Investments
Total cost: 240 million EURO
27
Europe - Airport City Belgrade
28
Asia-Pacific
Doing business in Asia pacific since 2005
Philippines
 Strategic partnership with local real estate company, Filinvest Land, Inc.
(one of the largest real estate & financial entities in the Philippines)
 Focus on real estate projects incl.
Residential
Offices
Commercial
Hotels
Business parks
Business expansion to India and China
29
Asia-Pacific - Timberland - Philippines
30
Israel - Income Producing Properties
Africa Israel Properties:
Public company traded on the TASE
70% held by Africa Israel Investments
Market Cap of 2,064 million NIS
Since 1971
More than 270,000 .sq m incl.
5 shopping malls
3 high-tech industrial parks
5 office towers
31
Israel - Income Producing Properties
Industrial
Concorde – Bnei Brak
8,000 .sq m
Global Park – Lod
21,000 .sq m
Park Rehovot
15,000 .sq m
Offices
Avia – Yehud
2,600 .sq m
Government Offices
- Tel Aviv 29,000 .sq m
Africa House - Tel Aviv
2,600 .sq m
Ramat Aviv Mall - Tel Aviv 27,500 .sq m
City Centre – Haifa
10,500 .sq m
Savionim Mall – Yehud
11,000 .sq m
Shopping
Malls
32
Israel - Africa Israel Residences
Public company traded on the TASE
75% held by Africa Israel Investments
Market Cap of 867 million NIS
Since 1934
Africa Israel Residences is involved in the innovative development
neighborhoods under the prestigious brand name “SAVYONIM”
2007 projects under construction - 23
Land Bank of more than 15,300 units
Ranked Israel’s #1 residential development company for last 10 years
33
Israel - Africa Israel Residences
Savyoney Ramat Aaviv
Tel Aviv 400 units
Sea Gate - Rishon Lezion
463 units
Savyon Tower Ramat Gan
151 units
Platinum - Ramat Gan
84 units
Lev Asavyonim – Petach Tikva
1,282 units
Hanevi’im Court, Jerusalem
102 units
34
Construction & Infrastructure
Residential
Infrastructure
Commercial
Construction
Infrastructure
Industrial
Offices
BOT & PFI
ISRAEL
Russia & CIS
Europe
Construction & Infrastructure - Danya Cebus Ltd:
Public company traded on the TASE
75% held by Africa Israel Investments
Market Cap of 818 million NIS
Danya Cebus became the Construction and Infrastructure division of
the Africa Israel Group
The leading construction and engineering company in Israel
Danya is active in a diverse range of projects on a global basis
The company’s strengths concentrate:
Residential
Infrastructure – Roads, Bridges
Prefabricated Elements
Shopping Malls, Office & Commercial Buildings
36
Construction & Infrastructure - Danya Cebus Ltd:
 Residence
 Commercial & office
 Infrastructure
 Industrial
Savyoney Givatiim
Power Center Jerusalem
Road 431
Keshev -Lod
Givat Savion
Africa house- Tel Aviv
Cross Israel Highway - # 6
Police Headquarters
Tel Aviv
37
B.O.T. & P.F.I. Projects
Highway # 6
Cross-Israel Highway - # 6
Road 431
Road 431 P.F.I. project –1.6 billion NIS
Prisons
Construction & Servicing
Dormitories
Hebrew University (Jerusalem)
Students Dormitories
Light Railway
TEL AVIV
22 km of Transportation routes in the
metropolis, TEL AVIV 11 Billion NIS
38
Energy
Refining
Energy
Offices
Distribution
Asphalt
BOT & PFI
ISRAEL
AMERICA
Energy
Alon Israel Oil
Company
Alon Group focused on the energy and retail
Sectors. The Goup operate businesses in three
segments: (1) USA Energy; (2) Israel Retail;
and (3) Israel Energy
Dor Alon
Energy
A nationwide chain of gas stations
& convenience stores
Alon USA
Assets in 6 states in the USA, incl. 1,700 Fina
gas stations, 6 terminals, the Big SpringRefinery,
1,150 miles of fuel pipelines and asphalt factories.
Alon USA is the largest 7-Eleven branded licensee
with 172 convenience stores
40
Related Industries
ISRAEL
Russia & CIS
Europe
Related Industries - AFI Industries
Packer Steel Ltd
Packer Steel is the leading steel group
in Israel
The company recently expanded abroad
by acquiring a big industrial property in
Russia
Negev Ceramics Ltd
Israel’s leader in design concepts for both
the construction industry and interior
design
42
Asset Management
ISRAEL
Asset Management
Mutual Funds &
Asset Management
The Company specializes in asset management
The Company’s full-service approach enables it to
provide its clients with a variety of tailor-made financial
packages
Assets under management–2.4B NIS (as of Sep. 07)
Underwriting
The Company is active in advisory, design, management
and capital raising. The Company offers a full-scale of
financial solutions including private placement, debt
offering and IPO.
During 2007 the Company completed 70 underwriting offerings
44
Other Business Area
Other Business Area
Tourism &
Leisure
Communications
& Media
Africa Israel Hotels Ltd.
Manages 10 hotels (2,500 rooms) and 2 recreational
sites in Israel and abroad
Tadiran Telecom Ltd.
Innovative communications solutions
Israel Plus
Russian speaking TV channel
Blue Square Israel Ltd
One of the largest Israeli supermarket chains (Co-Op)
Retail & Fashion
Sea Group
Swimwear fashion, designers & manufacturers
46
Thank You
AFRICA ISRAEL
For Further Information:
www.africa-israel.com