· Net result Q1-2011: break-even (Q1-2010: loss of EUR 13 million).
Highlights (all figures represent Kardan stake):

Real Estate
· Sale of 16% stake of GTC SA raises approx. EUR 195 million to reduce leverage (over EUR 100 million in 2011), while retaining 27% strategic stake
· EUR 3 million net contribution of GTC SA (equal to Q1-2010) despite smaller stake
· GTC China sells its 50% stake in real estate project in Hangzhou
Water Infrastructure
· Net contribution of EUR 1 million (Q1-2010: break even) on back of growing Chinese wastewater treatment assets
· Agreement signed for development of new wastewater treatment plant in China (Zichuan)

Financial Services
· Net contribution of EUR 4 million (Q1-2010: loss of EUR 10 million)· Sale of VAB Bank (Ukraine) at small profit
· Post balance sheet date: acquisition of Bulgarian bank

Rental and Leasing of Vehicles
· Increase in stake in AVIS Israel to 68%

Sale of Vehicles
· Launch of new GM model increases revenues by 23%
The contribution of each of the businesses to the results of Kardan is shown in the table below. As profits attributable to minority shareholders in the businesses have already been deducted, these figures do not represent the full (100%) net result realized in each division or segment. The full net results of the divisions and segments are presented in paragraphs 1.1 and 2.1.

The Management Board of Kardan N.V. (“Kardan”) commented on the results of the first quarter of 2011:

“In our press release regarding the 2010 results, we stated that the year 2010 was a transition year in which we made some strategic decisions, which were a) to deleverage Kardan at the holding level, b) to simplify the structure of Kardan and c) to switch from our “watch and hold” mode to develop new business opportunities. During the first quarter of 2011 we began to implement these strategic decisions. We sold 16% of our stake in our successful real estate company GTC SA in January 2011, raising approximately EUR 195 million, of which more than 50% will be used to deleverage Kardan. As a result, net debt of the combined holdings, excluding Kardan Israel, decreased by almost EUR 140 million to approximately EUR 500 million.

Furthermore, we sold VAB Bank, in the Ukraine, at the end of January, which significantly decreased our exposure to the Ukraine and eliminated the need to inject further cash to support the bank. The acquisition of Banka Sofia in Bulgaria, announced in April, should provide access to cheaper funding and thus improve the results of our consumer lending operations in Bulgaria and Romania, primarily through organic growth.

Tahal, our water infrastructure company, is reviewing many business opportunities, both on the project side as well as on the asset side. We have just signed an agreement for the development of a new wastewater treatment plant in Zichuan in China, where the need for these facilities is high.

GTC China, our real estate company in China, is moving more towards mixed-use projects, comprising of both residential units and shopping malls, such as our project in Dalian. GTC SA started construction of an office building in Warsaw with a pre-let of 50%. Given the opportunities that we see for our water infrastructure businesses as well as for our real estate activities we plan to grow these existing businesses in their current markets and to initiate new real estate opportunities in Asia, whilst also looking to expand our water infrastructure presence worldwide” says Alain Ickovics, Chairman of the Management Board.

tijd 09.11
Kardan reageert goed op de cijfers EUR 3,77 +4ct en 3.732 sts omzet.