- Highlights Q2 and H1 2018:
Following is a summary of net profit (loss) by activity. Management evaluates performance of main segments by their operational result. Further information that includes detailed segment analysis can be found further in this report.

Kardan N.V.
Q2 2018: € 15.4 million net loss to equity holders (Q2 2017: net loss of € 2.1 million), including € 7.9 million negative impact as a result of foreign exchange translation differences of the EUR versus the NIS and change in Israeli CPI on the Company’s debentures (Q2 2017 € 5.3 positive impact).
H1 2018: € 11.1 million net loss to equity holders (H1 2017: net loss of € 19.9 million), including net positive impact of foreign exchange differences and change in the Israeli CPI of € 4.8 million (H2 2017 € 6.2 million negative).
Real Estate
H1 2018: net loss to equity holders of € 7.1 million (H1 2017: net loss of € 5.2 million), mainly as a result of a negative revaluation of investment property, low delivery of residential units in the joint venture projects and high interest expenses on Dalian project construction loan.
Water Infrastructure
H1 2018: € 0.9 million net profit to equity holders (H1 2017: net profit of € 2.2 million, including tax benefit) impacted by several one-off expenses. The result from operations increased to € 3.6 million in H1 2018 compared to € 1.3 million in H1 2017 following improved profitability of several projects.
Other
Avis Ukraine continued to show good results and contributed equity earnings of € 0.9 million in H1 2018.
The February 2018 scheduled payment of principal and interest to the Company’s debenture holders (series A and B) amounting to approximately €110. The negotiations with the debenture holders are still ongoing.


Ariel Hasson, CEO of Kardan NV: “Following a strong second quarter our water infrastructure activities Tahal reported good operational results. In the first half of 2018 Tahal won a number of new projects around the globe, further strengthening its position in the water infrastructure and agricultural sector. Our real estate activities in China, through our subsidiary KLC, was successful in selling and delivering residential units in the Europark Dalian project. The results of KLC were however burdened by an adjustment to fair value of our mall in Dalian and by the high interest expense on the Dalian loan.


In the beginning of this year we commenced negotiations with our debenture holders in order to formulate a new debt settlement. I am pleased to say that, in the past weeks, we have made substantial progress in these discussions. Although there is no certainty of the outcome, we believe that a debt settlement, if implemented, will allow the company the setting to continue and repay its debt in the interest of all stakeholders. In parallel we pursue our efforts to advance the transaction for the sale of Tahal. We will continue to do the utmost to divest assets in a manner that will allow us to maximize value and proceeds and to restore our equity position.”


tijd 09.30
Kardan EUR 0,1058 -0,0102 vol. 444.801