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1
Africa Israel Investments Ltd.
Separate-Company Financial Information
At December 31, 2012
1
Africa Israel Investments Ltd.
Separate Company Financial Information
At December 31, 2012
Contents
Page
Special Auditors’ Report on the Separate-Company Financial Information 2
Separate-Company Statements of Financial Position 3 – 4
Separate-Company Statements of Income 5
Separate-Company Statements of Comprehensive Income 6
Separate-Company Statements of Cash Flows 7 – 8
Additional Information with respect to the Separate-Company Financial Statements 9
2
To:
The shareholders of Africa Israel Investments Ltd
Dear Sirs,
Subject: Special Auditors’ Report on the Separate Financial Data according to Regulation 9C of the
Securities Regulations (Periodic and Immediate Reports), 1970.
We have audited the separate financial data presented in accordance with Regulation 9C of the Securities
Regulations (Periodic and Immediate Reports), 1970, of Africa Israel Investments Ltd. (hereinafter – “the
Company”) as at December 31, 2012 and 2011 and for each of the three years, the last of which ended
December 31, 2012, and which are included in the Company’s Periodic Report. The separate financial data
are the responsibility of the Company’s Board of Directors and of its Management. Our responsibility is to
express an opinion on the separate financial data based on our audits.
The data included in the separate financial data that relates to the carrying value in the books of the
investments and the Company’s share in the income of investee companies, is based on financial statements
some of which were audited by other auditors and our opinion, to the extent it relates to the amounts
included in respect of those companies, is based on reports of the other auditors.
We conducted our audits in accordance with generally accepted auditing standards in Israel. Such standards
require that we plan and perform the audits to obtain reasonable assurance that the separate financial data is
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the separate financial data. An audit also includes assessing the accounting principles that
were used in preparing the separate financial data and the significant estimates made by the Company’s
Board of Directors and by its Management, as well as evaluating the separate financial data presentation.
We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audit and on the reports of the other auditors, the separate financial data has
been prepared, in all material respects, in accordance with Regulation 9C of the Securities Regulations
(Periodic and Immediate Reports), 1970.
Somekh Chaikin Breitman Almagor Zohar & Co.
Certified Public Accountants (Isr.) Certified Public Accountants (Isr.)
March 21, 2013
3
Africa Israel Investments Ltd.
Separate-Company Statements of Financial Position
In Thousands of New Israeli Shekels
At December 31
2012 2011
Current assets
Cash and cash equivalents 708,403 143,730
Short-term investments – 7,501
Marketable securities 17,122 141,086
Trade receivables 184 203
Other receivables and debit balances 10,835 47,010
Receivables – investee companies 31,341 34,632
Inventory of buildings held for sale 17,811 48,616
Assets held for sale – 67,853
785,696 490,631 ------------- -------------
Non-current assets
Investments in investee companies 6,202,497 *,**6,733,630
Loans to investee companies 584,307 **756,199
Property, plant and equipment 915 1,833
Investment property 92,230 93,065
Investment property under construction – 648
Long-term loans, investments and other debit balances 157 245
Inventory of real estate 1,812 2,205
Intangible assets 1,619 2,151
6,883,537 7,589,976 ------------- -------------
7,669,233 8,080,607
* Restated due to retroactive application of an amendment to an accounting standard – see Note 2C below.
** Reclassified – see Note 3 below.
____________________________ ________________________ _________________________
Lev Leviev
Chairman of the Board of Directors
Avraham Novogrocki
CEO
Menashe Sagiv
CFO
Approval date of the financial statements: March 21, 2013
The additional information attached to the separate-company information is an integral part thereof.
4
Africa Israel Investments Ltd.
Separate-Company Statements of Financial Position
In Thousands of New Israeli Shekels
At December 31
2012 2011
Current liabilities
Debentures 332,809 –
Credit from banks 115,910 57,597
Contractors and suppliers 451 10,052
Other payables and credit balances, including financial derivatives 53,241 93,013
Payables – investee companies 164,713 22,688
Advances from customers 22,217 31,039
Income taxes payable 440 964
Provisions 31,787 56,584
721,568 271,937 ------------- -------------
Non-current liabilities
Loans from investee companies 271,622 **146,579
Debentures 2,574,029 2,723,132
Liabilities to banks 290,894 400,576
Excess of losses over investments in investee companies 1,945 **8,090
Other liabilities 13,099 15,733
Liability for deferred taxes 26,883 **7,112
Employee benefits 1,103 1,105
3,179,575 3,302,327 ------------- -------------
Equity
Share capital 377,746 376,147
Premium on shares 3,976,642 3,764,445
Capital reserves (1,866,026) (1,910,617)
Retained earnings 1,279,728 *2,276,368
Total equity attributed to the holders of the Company’s equity rights 3,768,090 4,506,343 ------------- -------------
Total liabilities equity 7,669,233 8,080,607
* Restated due to retroactive application of an amendment to an accounting standard – see Note 2C below.
** Reclassified – see Note 3 below.
The additional information attached to the separate-company information is an integral part thereof.
5
Africa Israel Investments Ltd.
Separate-Company Statements of Income
In Thousands of New Israeli Shekels
For the Year Ended December 31
2012 2011 2010
Revenues
Construction and real estate transactions 56,954 105,136 111,434
Rental and operation of properties 5,110 5,145 6,326
Share in income of investee companies accounted for using
the equity method of accounting, net – *,**1,863,721 –
Increase in fair value of investment property, net – 1,235 4,081
Other income 112,869 **151,891 444,995
174,933 2,127,128 566,836 ------------- ------------- ------------- Cost and expenses
Construction and real estate transactions 39,631 **75,621 75,041
Maintenance, supervision and management of real
estate and properties 606 438 1,279
Share in losses of investee companies accounted for using
the equity method of accounting, net 1,957,971 – *685,743
Decline in fair value of investment property, net 866 – –
Administrative and general expenses 38,865 **47,322 58,091
Amortization of intangible assets and other expenses 25,459 36,252 90,628
2,063,398 159,633 910,782 ------------- ------------- -------------
Operating income (loss) (1,888,465) 1,967,495 (343,946) ------------- ------------- -------------
Financing expenses (449,756) (1,819,219) (619,296)
Financing income 1,356,133 177,608 2,466,009
Financing income (expenses), net 906,377 (1,641,611) 1,846,713 ------------- ------------- -------------
Income (loss) before taxes on income (982,088) 325,884 1,502,767
Taxes on income (20,539) **(7,112) –
Income (loss) from continuing operations (1,002,627) 318,772 1,502,767
Income from discontinued operations – – 199,979
Income (loss) for the year attributed to the owners of
the Company (1,002,627) 318,772 1,702,746
* Restated due to retroactive application of an amendment to an accounting standard – see Note 2C below.
** Reclassified – see Note 3 below.
The additional information attached to the separate-company information is an integral part thereof.
6
Africa Israel Investments Ltd.
Separate-Company Statements of Comprehensive Income
In Thousands of New Israeli Shekels
For the Year Ended December 31
2012 2011 2010
Income (loss) for the year (1,002,627) *318,772 *1,702,746
Components of other comprehensive income (loss)
Foreign currency translation differences in respect of
foreign activities and other reserves in respect of investee
companies 6,801 295,287 (415,325)
Net change in fair value of financial assets available for sale,
net of tax – 64,320 3,694
Income (loss) from decline in value of financial assets
available for
sale transferred to the statement of income, net of tax – (68,014) –
Total comprehensive income (loss) for the year (995,826) 610,365 1,291,115
* Restated due to retroactive application of an amendment to an accounting standard – see Note 2C below.
The additional information attached to the separate-company information is an integral part thereof.
7
Africa Israel Investments Ltd.
Separate-Company Statements of Cash Flows
In Thousands of New Israeli Shekels
For the Year Ended December 31
2012 2011 2010
Cash flows from operating activities
Income (loss) for the year attributed to the owners of the
Company (1,002,627) *318,772 *1,702,746
Adjustments:
Depreciation and amortization 2,606 2,770 2,750
Decrease (increase) in value of investments, net 12,065 20,135 (176)
Gain on sale of investee companies (97,009) (3,335) (614,027)
Change in fair value of investment property 866 (1,235) (4,081)
Financing expenses (income), net (853,494) 1,710,422 (1,833,759)
Company’s share in results of investee companies, net 1,957,971 *,**(1,863,721) *743,073
Marketable securities, net (54,453) (70,405) 33,342
Share-based payment transactions (40) 3,525 4,502
Taxes on income 20,539 **7,112 –
Change in inventory of buildings held for sale 26,716 36,209 5,942
Change in inventory of real estate 393 32,613 2,148
Change in long-term debt – (107,866) –
Change in trade receivables and other receivables and debits 5,456 12,839 158,167
Change in advance deposits from customers (8,822) (43,727) 52,357
Change in trade payables and other payables and credits (16,324) (6,738) (773)
Change in provisions and employee benefits (5,629) (13,471) (29,872)
Income taxes paid, net (1,081) (752) (637)
Net cash provided by (used in) operating activities before
transactions with investee companies (12,867) 33,147 221,702
Net cash from operating activities in respect of transactions
with investee companies (5,834) 1,076,157 (817,871)
Net cash provided by (used in) operating activities (18,701) 1,109,304 (596,169) ------------- ------------- -------------
* Restated due to retroactive application of an amendment to an accounting standard – see Note 2C below.
** Reclassified – see Note 3 below.
The additional information attached to the separate-company information is an integral part thereof.
8
Africa Israel Investments Ltd.
Separate-Company Statements of Cash Flows
In Thousands of New Israeli Shekels
For the Year Ended December 31
2012 2011 2010
Cash flows from investing activities
Interest received 16,276 4,045 2,436
Dividends received 15,169 28,898 –
Proceeds from sale of investee companies 140,193 193,129 290,742
Repayment of long-term deposits and loans 27,200 – –
Investment in long-term deposits and loans – – (624)
Acquisition of property, plant and equipment (129) (1,108) (356)
Investment in investee company accounted for using the
equity method of accounting (16,515) – –
Acquisition of intangible assets (800) (1,006) (1,820)
Acquisition of investment property (51) – (3,384)
Proceeds from sale of investment property – 4,228 –
Investment in investment property under construction – (76) (41)
Short-term investments, net 3,715 (199) 28,613
Acquisition of marketable securities – – (54,420)
Sale of marketable securities 178,417 123,569 58,860
363,475 351,480 320,006
Net cash from investing activities in respect of transactions
with investee companies 99,990 150,041 583,856
Net cash provided by investing activities 463,465 501,521 903,862 ------------- ------------- -------------
Cash flows from financing activities
Repayment of loans and debentures (57,969) (1,143,326) (444,089)
Receipt of long-term loans and liabilities 6,200 9,035 19,275
Proceeds from issuance of share capital in the Company 213,796 213,094 380,559
Acquisition of non-controlling interests (60,605) (288,414) –
Short-term credit, net – (2,200) (312)
Interest paid (253,749) (289,001) (242,987)
(152,327) (1,500,812) (287,554)
Net cash from financing activities in respect of transactions
with investee companies 277,709 – –
Net cash provided by (used in) financing activities 125,382 (1,500,812) (287,554) ------------- ------------- -------------
Increase in cash and cash equivalents 570,146 110,013 20,139
Cash and cash equivalents at the beginning of the year 143,730 29,222 9,083
Effect of exchange rate fluctuations on balances of cash and
cash equivalents (5,473) 4,495 –
Cash and cash equivalents at the end of the year 708,403 143,730 29,222
The additional information attached to the separate-company information is an integral part thereof.
9
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 1 – General
A. Set forth below is financial data taken from the Group’s financial statements as at
December 31, 2012 (hereinafter – “the Consolidated Financial Statements”), which are
issued as part of the Periodic Report and that relate to the Company itself (hereinafter –
“the Separate-Company Financial Information”), presented in accordance with
Regulation 9C (hereinafter – “the Regulation”) and the Tenth Addendum to the Securities
Regulations (hereinafter – “Periodic and Immediate Reports”), 2010 (hereinafter – “the
Tenth Addendum”) regarding Separate-Company Financial Information of a Company.
The Separate-Company Financial Information is to be read together with the Consolidated
Financial Statements.
In the Separate-Company Financial Information, the following terms shall have the
meaning as set forth below:
(1) The Company – Africa Israel Investments Ltd.
(2) Subsidiaries – companies, including a partnership, the financial statements of which
are fully consolidated, directly or indirectly, with those of the Company.
(2) Investee Companies – subsidiaries and companies, including a partnership or a joint
venture, the Company’s investment in which is included, directly or indirectly, in the
financial statements based on the equity method of accounting.
B. Regarding the impact of the global financial crisis on the Group’s activities – see Note 1B
to the Consolidated Financial Statements.
C. For details regarding the Company’s exchange tender offer from December 2012 – see
Note 22E(1)(c) to the Consolidated Financial Statements.
D. For details regarding a plan for acquisition by the Company of its own debentures
(Series Z) – see Note 22E(1)(b) to the Consolidated Financial Statements.
Note 2 – Significant Accounting Policies applied in the Separate-Company Information
The accounting policies detailed in the Consolidated Financial Statements were applied for
purposes of presentation of the separate-company financial information, including the manner in
which the financial information was classified as part of the Consolidated Financial Statements,
with the necessary modifications as set forth below:
A. Presentation of the financial data
(1) Data with respect to the financial position
This data includes information regarding the amounts of the assets and liabilities
included the Consolidated Financial Statements relating to the Company itself
(excluding with respect to investee companies), while providing detail based on the
types of assets and liabilities. In addition, included as part of this data is information
relating to the net amount, based on the Consolidated Financial Statements,
attributable to the Company’s shareholders, of the amount of the assets less the
amount of the liabilities in connection with investee companies, including goodwill.
10
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 2 – Significant Accounting Policies applied in the Separate-Company Information (Cont.)
A. Presentation of the financial data (Cont.)
(2) Data with respect to the comprehensive income
This data includes information regarding the amounts of the revenues and expenses
broken down between income or loss and other comprehensive income attributable to
the Company itself (excluding with respect to investee companies), while providing
detail based on the types of revenues and expenses. In addition, the data includes
information regarding the net amount, based on the Consolidated Financial
Statements, attributable to the Company’s shareholders, of the amount of the revenues
less the amount of the expenses in respect of activities with investee companies,
including impairment in value of goodwill, impairment in value of an investment in an
associated company or cancellation thereof, and impairment in value of an investment
in a jointly-controlled company accounted for using the equity method of accounting
or cancellation thereof.
(3) Data with respect to the cash flows
This data includes detail regarding the amounts of the cash flows included in the
Consolidated Financial Statements attributable to the Company (excluding with
respect to investee companies), which are taken from the consolidated statement of
cash flows, broken down by current operating activities, investing activities, and
financing activities, along with detail of each of the above-mentioned categories. Cash
flows from current operating activities, investing activities, and financing activities in
respect of transactions with investee companies is presented separately, on a net basis,
as part of the related activities, based on the nature of the transaction.
(4) Management fees from investee companies, in the amount of about NIS 5,581
thousand and about NIS 3,623 thousand for the years ended December 31, 2012
and 2011, respectively, in respect of their participation in the headquarters expenses,
were offset against the Company’s administrative and general expense.
B. Transactions between the Company and investee companies
(1) Presentation
The reciprocal balances in the Group of revenues and expenses deriving from
reciprocal transactions, which were eliminated as part of preparation of the
Consolidated Financial Statements, have been presented separately from the balance
in respect of investee companies and the income in respect of investee companies,
together with similar balances with third parties.
Unrealized income and expenses deriving from transactions between the Company
and its investee companies, were presented as part of the balance in respect of
investee companies and as part of the income in respect of investee companies.
(2) Measurement
Transactions executed between the Company and its subsidiaries were measured in
accordance with the recognition and measurement principles provided in International
Financial Reporting Standards (IFRS), which outline the accounting treatment of
similar transactions executed with third parties.
11
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 2 – Significant Accounting Policies applied in the Separate-Company Information (Cont.)
C. Retroactive application of accounting principles
Commencing from January 1, 2012, the Group applies the Amendment to IAS 12 “Taxes
on Income, Deferred Taxes in respect of Investment” (hereinafter – “the Amendment”).
Pursuant to the Amendment, a rebuttable presumption was provided whereby deferred
taxes in respect of investment properties measured based on the fair value model in
accordance with the provisions of IAS 40 “Investment Property” will be calculated under
the assumption that the manner of recovery of the book value of investment properties will
be solely by sale. Nonetheless, the presumption may be rebutted in cases where the
investment properties are depreciable and the purpose of the Company’s business model in
holding the property is essentially to consume all the economic benefits embedded in the
property over its life.
Adoption of the Amendment was made retroactively so that it conforms to the holding as
stated above, in light of the Group’s business model with respect to investment properties.
Set forth below is data regarding the impact of the retroactive application on the relevant
categories:
(1) Impact on the statement of financial position:
As at December 31, 2011
Impact As presented
As of the in these
previously retroactive financial
reported application statements*
In thousands of NIS
Investments in investee companies 8,868,104 11,004 8,879,108
Balance of retained earnings (2,265,364) (11,004) (2,276,368)
As at December 31, 2010
Impact As presented
As of the in these
previously retroactive financial
reported application statements*
In thousands of NIS
Investments in investee companies 6,464,534 7,316 6,471,850
Balance of retained earnings (1,955,851) (7,316) (1,963,167)
As at January 1, 2010
Impact As presented
As of the in these
previously retroactive financial
reported application statements*
In thousands of NIS
Investments in investee companies 7,631,320 6,626 7,637,946
Balance of retained earnings (249,293) (6,626) (255,919)
* Prior to impact of the restatement – Note 3 below
12
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 2 – Significant Accounting Policies applied in the Separate-Company Information (Cont.)
C. Retroactive application of accounting principles (Cont.)
(2) Impact on the statement of comprehensive income:
For the Year Ended December 31, 2011
Impact As presented
As of the in these
previously retroactive financial
reported application statements*
In thousands of NIS
Income from investee companies, net 1,852,921 3,688 1,856,609
Net income for the year attributable to
the Company’s owners 315,084 3,688 318,772
Comprehensive income for the year 606,677 3,688 610,365
For the Year Ended December 31, 2010
Impact As presented
As of the in these
previously retroactive financial
reported application statements*
In thousands of NIS
Income from investee companies, net (686,433) 690 (685,743)
Net income for the year attributable to
the Company’s owners 1,702,056 690 1,702,746
Comprehensive income for the year 1,290,425 690 1,291,115
* Prior to impact of the restatement – Note 3 below
Note 3 – Basis of Preparation of the Financial Statements
Change in classification
A. The Company reclassified asset and liability items in the statement of financial position as
at December 31, 2011 in amounts that are not significant. In addition, the Company
reclassified various items in the statement of income for the years ended December 31,
2011 and December 31, 2010 in amounts that are not significant.
B. During the third quarter of 2012, the Company changed classification of the excess losses
of investments in investee companies and loans from investee companies presented as a
long-term liability, to investments in investee companies and loans to investee companies
presented as a non-current asset, in order to reflect the balance of the net investment after
offset of the balance of the loans to the investee companies and the excess losses on the
investments in the investee companies. The comparative figures were reclassified in the
aggregate amount of NIS 3,056,231 thousand as at December 31, 2011.
13
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 4 – Cash and Cash Equivalents
At December 31
2012 2011
In Thousands of NIS
Cash and cash equivalents denominated in shekels 653,894 139,182
Cash and cash equivalents linked to the dollar 54,509 4,534
Cash and cash equivalents linked to other currencies – 14
Total cash and cash equivalents 708,403 143,730
Note 5 – Financial Instruments
A. Trade and other receivables
At December 31, 2012
Linked
Unlinked shekel Total
In Thousands of New Israeli Shekels
Current assets*
Trade receivables – 184 184
Receivables – investee companies 6,774 24,567 31,341
Other receivables and debit balances,
including financial derivatives 9,228 – 9,228
Total 16,002 24,751 40,753
At December 31, 2011
Linked
Unlinked shekel Total
In Thousands of New Israeli Shekels
Current assets*
Trade receivables – 203 203
Receivables – investee companies (mainly
bearing interest of 3.8%) 34,632 – 34,632
Other receivables and debit balances,
including financial derivatives 25,100 21,910 47,010
Total 59,732 22,113 81,845
* Trade and other receivables classified as current assets from realizations as part of the
Company’s operating turnover.
14
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 5 – Financial Instruments (Cont.)
B. Other investments, including derivatives
1. Breakdown of financial assets based on groups
At December 31
2012 2011
In Thousands of NIS
Current investments
Investments held for trade 17,122 141,086
Other investments at amortized cost – 7,501
17,122 148,587
Non-current investments
Other investments at amortized cost 157 245
2. Details regarding linkage based on types of investments
(a) Financial assets measured at fair value through the statement of income,
excluding derivatives
Non-monetary
financial instruments
At December 31
2012 2011
In Thousands of NIS
Shares 17,122 141,086
(b) Loans and receivables
At December 31, 2012
CPI-linked
Unlinked shekel Total
In Thousands of New Israeli Shekels
Deposits – 157 157
At December 31, 2011
CPI-linked
Unlinked shekel Total
In Thousands of New Israeli Shekels
Deposits 7,501 245 7,746
15
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 5 – Financial Instruments (Cont.)
B. Other investments, including derivatives
3. Analysis of the projected realization dates
At December 31, 2012
In Thousands of NIS
2013 –
2014 –
2015 –
Not yet determined 157
157
16
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 5 – Financial Instruments (Cont.)
C. Loans and Credit
This section provides information regarding the contractual terms of the Company’s loans
and credit bearing interest measured at amortized cost.
Details regarding interest and linkage
At December 31, 2012
Unlinked Unlinked Linked
Book shekel shekel shekel
Effective Interest Rate value 0% 2%–5.5% 0%–13.84% Total
In Thousands of New Israeli Shekels
Loans and credit as part
of current liabilities
Credit from others:
Short-term loans 800 – – 800 800
Credit from banks:
Overdrafts 397 397 – – 397
Current maturities of
long-term liabilities:
Current maturities of
debentures 332,809 – – 332,809 332,809
Current maturities of
long-term loans 115,513 – 115,513 – 115,513
Total current liabilities
and credit 449,519 397 115,513 333,609 449,519
At December 31, 2012
Unlinked Unlinked Linked
Book shekel shekel shekel
Effective Interest Rate value 0% 2%–5.5% 0%–13.84% Total
In Thousands of New Israeli Shekels
Loans and credit as part
of non-current liabilities
Debentures 2,574,029 – – 2,574,029 2,574,029
Credit from banks 290,894 – 290,894 – 290,894
Other liabilities 1,837 – 327 1,510 1,837
Total non-current
liabilities and credit 2,866,760 – 291,221 2,575,539 2,866,760
17
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 5 – Financial Instruments (Cont.)
C. Loans and Credit (Cont.)
Details regarding interest and linkage (Cont.)
At December 31, 2011
Unlinked Unlinked Linked
Book shekel shekel shekel
Effective Interest Rate value 0% 3%–6.4% 13.84% Total
In Thousands of New Israeli Shekels
Loans and credit as part
of current liabilities
Credit from others:
Short-term loans 940 – – 940 940
Credit from banks:
Current maturities of
long-term loans 57,597 – 57,597 – 57,597
Total current liabilities
and credit 58,537 – 57,597 940 58,537
At December 31, 2011
Unlinked Unlinked Linked
Book shekel shekel shekel
Effective Interest Rate value 0% 3%–6.4% 13.84% Total
In Thousands of New Israeli Shekels
Loans and credit as part
of non-current liabilities
Debentures 2,723,132 – – 2,723,132 2,723,132
Credit from banks 400,576 – 400,576 – 400,576
Financial guarantees 1,019 1,019 – – 1,019
Other liabilities 3,452 322 – 3,130 3,452
Total non-current
liabilities 3,128,179 1,341 400,576 2,726,262 3,128,179
For information regarding loans and credit issued by the Company during the period
and information regarding contractual limitations and financial covenants borne by
the Company – see Note 22 to the Consolidated Financial Statements in connection
with loans and credit.
18
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 5 – Financial Instruments (Cont.)
D. Trade Payables
At December 31, 2012 At December 31, 2011
CPI CPI
Unlinked Linked Unlinked Linked
shekel shekel Total shekel shekel Total
In Thousands of New Israeli Shekels
Contractors and
suppliers 451 – 451 10,052 – 10,052
Payables – investee
companies 164,713 – 164,713 22,688 – 22,688
Other payables 14,325 28,310 42,635 65,106 27,907 93,013
179,489 28,310 207,799 97,846 27,907 125,753
E. Liquidity risk
Set forth below are the contractual repayment dates of financial liabilities in
non-discounted amounts, based on the future contractual rates as at the date of the report,
including estimated interest payments. This disclosure does not include amounts with
respect to which there are offset agreements:
At December 31, 2012
Contractual Up to More
Book cash one 1–2 2–5 than five
value flows year years years years
In Thousands of New Israeli Shekels
Non-derivative financial
liabilities
Credit from banks 406,804 446,407 134,573 128,508 183,326 –
Non-convertible
debentures 2,906,838 5,640,126 516,830 507,394 1,475,724 3,140,178
Liabilities to others 2,637 2,637 800 1,510 – 327
3,316,279 6,089,170 652,203 637,412 1,659,050 3,140,505
At December 31, 2011
Contractual Up to More
Book cash one 1–2 2–5 than five
value flows year years years years
In Thousands of New Israeli Shekels
Non-derivative financial
liabilities
Credit from banks 458,173 539,503 88,154 138,175 313,174 –
Non-convertible
debentures 2,723,132 5,783,192 223,256 509,482 1,486,228 3,564,226
Financial guarantees 1,019 1,019 – – – 1,019
Liabilities to others 4,392 4,392 940 1,100 2,030 322
3,186,716 6,328,106 312,350 648,757 1,801,432 3,565,567
19
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 6 – Taxes on Income
Composition of the taxes on income:
For the Year Ended December 31
2012 2011 2010
In Thousands of New Israeli Shekels
Current taxes
Adjustments in respect of prior years, net 768 – –
Deferred taxes
Deferred taxes in the year 19,771 *7,112 –
Total 20,539 7,112 –
* Reclassified – see Note 3 above.
Note 7 – Deferred Tax Assets and Liabilities
A. Deferred tax assets and liabilities recognized
The deferred taxes are calculated based on the tax rate expected to apply at the time
reversal as detailed above.
The movement in the deferred tax assets and liabilities are attributable to the following
items:
Deductions
and Losses In Respect
Carried of
Forward Investments
Investment for Tax in Investee
Property Purposes Company Total
In Thousands of New Israeli Shekels
Balance of deferred tax asset
(liability) on January 1, 2011 (18,638) 18,638 – –
Changes recorded on the statement
of income (886) 886 (7,112) (7,112)
Balance of deferred tax asset
(liability) on December 31, 2011 (19,524) 19,524 *(7,112) (7,112)
Changes recorded on the statement
of income (35) 35 (19,771) (19,771)
Balance of deferred tax asset
(liability) on December 31, 2012 (19,559) 19,559 (26,883) (26,883)
* Reclassified – see Note 3 above.
20
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 7 – Deferred Tax Assets and Liabilities (Cont.)
B. Details with respect to which deferred taxes were not recognized
At December 31
2012 2011
In Thousands of NIS
Deferred taxes with respect to losses for tax purposes 197,761 120,169
The Company has current losses available for carryforward, in the amount of NIS 791
million, with respect to which deferred taxes were not recorded.
Pursuant to the existing tax laws, there is no time limitation on the utilization of losses for
tax purposes. Deferred tax assets were not recognized for these items since it is not
expected that there will be taxable income in the future against which the tax benefits will
be able to be utilized.
For information regarding tax assessments – see Note 35E to the Consolidated Financial
Statements “Taxes on Income”.
21
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 8 – Relationships, Commitments and Significant Transactions with Investee Companies
A. Financial guarantees
The Company provided investee companies financial guarantees amounting to an
aggregate amount of NIS 524 million as at December 31, 2012. In addition, the Company
provided an associated company an unlimited guarantee for coverage of liabilities to a
bank. The scope of the credit from the bank, as at December 31, 2012, against which the
Company is a guarantor, amounts to about NIS 45 million (December 31, 2011 – about
NIS 66 million).
B. Loans
Set forth below is detail regarding loans and capital notes to investee companies –
As at December 31, 2012
Interest Par Fair
rate value value
Linkage basis % NIS ‘000
Loans linked to the index (1) 0–4 30,142 30,142
Unlinked loans (1) 0–5.5 62,152 62,152
Loans linked to the euro (1) 0–5 557 557
92,851 92,851
Capital notes (2) 3,382,475 2,733,545
3,475,326 2,826,396
As at December 31, 2011
Interest Par Fair
rate value value
Linkage basis % NIS ‘000
Loans linked to the index (1) 0–8 37,046 37,046
Unlinked loans (1) 0–5.5 37,871 37,871
Loans linked to the dollar (1) 0–14 16,781 16,781
91,698 91,698
Capital notes (2) 3,485,645 1,568,142
3,577,343 1,659,840
(1) A repayment date has not yet been set for the loans
(2) The capital notes bear interest or linkage and are repayable after 5 years.
C. Agreement for provision of services
Regarding agreements signed with investee companies – see Note 42 to the Group’s
Consolidated Financial Statements.
22
Africa Israel Investments Ltd.
Additional Information to the Separate-Company Financial Information
At December 31, 2012
Note 8 – Relationships, Commitments and Significant Transactions with Investee Companies
(Cont.)
D. Dividend
In connection with dividends received – see Note 15 to the Group’s Consolidated
Financial Statements.
E. Additional information
For additional information regarding investee companies and regarding sale of
investments in investee companies – see Notes 6 and 7 to the Consolidated Financial
Statements.
Note 9 – Events Occurring Subsequent to the Date of the Statement of Financial Position
For details regarding events occurring subsequent to the date of the statement of financial
position – see Note 44 to the Group’s Consolidated Financial Statements.
Recommended