KARDAN 2011 RESULTS:
LOSS OF EURO 148 MILLION MAINLY DUE TO SOUTH EASTERN EUROPEAN ACTIVITIES
DEVELOPMENT PACE ADJUSTED TO MARKET CIRCUMSTANCES CHINESE ACTIVITIES PERFORMED WELL.
Highlights segments 2011:
Kardan N.V.
· Spin-off of Israeli activities effected
· Reduced net debt by EUR 266 million

Real Estate Asia
· Sale of 50% of shopping mall in Chengdu; profit of EUR 12 million recognized
· Delivery of units stable, but slowdown in sale of units due to measures of Chinese government

Real Estate Europe
· Sold 16% stake in GTC S.A.: currently holds 28% stake in GTC S.A.
· Substantial negative revaluations and impairments in South East Europe as purchasing behavior deteriorated
· Asset disposal, refinancing activities and renegotiations of loan covenants to improve liquidity and structure of liabilities
· Sale of 50% of Galeria Mokotow (net proceeds to GTC S.A. EUR 110 million)
· Newly opened malls with high occupancy

Water Infrastructure Assets
· Wastewater treatment plant in China (Xuanhua) adds capacity of 120 ton / day
· Milgam divested as part of the spin-off of Israeli activities by Kardan

Water Infrastructure Projects
· Substantial project in Angola (Quiminha) signed; will generate approximately EUR 143 million revenue in coming three years

Banking and Retail Lending
· Acquisition of TBI Bank (Bulgaria) provides banking license
· Agreement to sell TBIF’s 50% stake in Sovcombank for EUR 123 million; closing expected in H2-2012
· Economic downturn in Romania and Bulgaria in H2-2011 led to impairments of goodwill and provisions in non banking portfolios