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
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): AA Midroog (Moody’s Affiliation): Aa2
Operating Global Conglomerate
EuropeRussia & CISAMERICAISRAEL Asia 2
Africa Israel Investments Ltd.
Residential
Real EstateConstruction&
InfrastructureEnergy
Related
Industries
Light Railway Refineries
Steel
Telecommunication & Media
Tourism & leisure
Retail
Other BusinessAreas
Roads & Bridges
Commercial
Offices
Private Prison
Asphalt
Ceramics
Oil pipelines
Hotels
ResidentialCommercial
Offices Petrol stations
Business Areas
Financial
Services
Fashion
Greenhouses
3
The Corporate Value Triangle
Entrepreneurship, Innovation, Business AssetsEntrepreneurship, Innovation, Business Assets
Financing capabilitiesFinancing capabilities Entrepreneurship, Innovation, Business AssetsEntrepreneurship, Innovation, Business Assets
4
. .
North America USACanada
Latin America Panama Argentina
Israel
Europe (East & Center) Czech RepublicGermanyHungaryBulgariaRomaniaLatviaPolandSerbia
AsiaChinaIndiaPhilippinesThailand
Global Presence – (2007)
Russia &CIS RussiaKazakhstan Ukraine
Related
IndustriesEnergy
Construction &
InfrastructureReal Estate
Other
Business5
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
Revenues
Total Assets
Gross Profit
Operating Profit
Net Earnings
NIS Millions
633
558
4,007
38,504
2004
5,386
Q-3/2007 2006 2005
1,498
1,433
844
18,778
4,876
1,424
1,377
649
15,535
4,258
724
686
406
10,716
3,152
Financial Snapshot
7
Total Assets (NIS Millions)
8
38,504
18,778
15,535
10,716
7,3245,444
2002 2003 2004 2005 2006 30.9.07
Revenues (NIS Millions)
9
5,3864,876
4,258
3,153
2,6162,227
2002 2003 2004 2005 2006 30.9.07
Net Profit (NIS Millions)
10
4,007
844649
406121
115
2002 2003 2004 2005 2006 30.9.07
-
100
200
300
400
500
600
2002 2003 2004 2005 2006 2007
TASE 25
Share Price Performance Since 2002
Dividends Distributed
Million NIS
Dividends Distributed
Million NIS 191 137 180 200 200
2002 2003 2004 2005 2006
2%
103%
352%
253%
1,010%
360
2007
11
Market Cap (NIS Millions)
AFI Development
Africa Israel Hotels
Africa Israel Properties
Africa Israel Residences
Danya Cebus
Africa Israel industries
AFIL‘S Share
Alon
Value to AFIL (20.11.07)
AFRICA ISRAEL
69.9%
74.9%
74.8%
67.5%
86.1%
26.1%
71.7%
Net Debt 30.9.07
Public Only
12
17,047
2,544
976
1,081
337
2,415
323
21,630
(7,549)
Business Areas – Real Estate World Wide
EuropeRussia & CISAMERICAISRAEL Asia
Hotels
Residential
Real Estate
Offices
Commercial
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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Tverskaya Shopping Center
71,000 .sq m
Tverskaya Shopping Center
71,000 .sq mTverskaya Zastava Plaza I
63,000 .sq mTverskaya Zastava Plaza I
63,000 .sq mTverskaya Zastava Plaza II
100,000 .sq mTverskaya Zastava Plaza II
100,000 .sq m
Ozerkovskaya Embankment
90,000 .sq m
Ozerkovskaya Embankment
90,000 .sq m
Four Winds
41,000 .sq m
Four Winds
41,000 .sq m
Moscow City Center Core
110,000 .sq m
Moscow City Center Core
110,000 .sq m
Otradnoye (Odinzovo)
490,000 .sq m
Otradnoye (Odinzovo)
490,000 .sq m
Real Estate - Russia & CIS
15
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
Russia & CIS - Moscow City
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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
Russia & CIS - Tverskaya Zastava
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
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Atlantic Court LLC 16,000 .sq m
Atlantic Court LLC 16,000 .sq m
New York Times 72,000 .sq m
New York Times 72,000 .sq m
North America
85 Adams 12,000 .sq m85 Adams
12,000 .sq m
New York Miami Las Vegas Los Angeles South Carolina
88 Leonard St.40,000 .sq m
88 Leonard St.40,000 .sq m
14 Wall St 100,000 .sq m
14 Wall St 100,000 .sq m
Apthorp 42,500 .sq m
Apthorp 42,500 .sq m
Marquiz 108,000 .sq m
Marquiz 108,000 .sq m
The clock Tower 26,000 .sq m
The clock Tower 26,000 .sq m
20 Pine 72,000 .sq m
20 Pine 72,000 .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
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
North America - The Clock Tower
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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
North America - The Apthorp
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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
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Europe
Palace Flora 38,000 .sq m
Palace Flora 38,000 .sq m
Airport City by Belgrade 120,000 .sq m
Airport City by Belgrade 120,000 .sq m
Broadway Palace7,000 .sq m Broadway Palace7,000 .sq m
Vitosha Gardens – Bulgaria18,000 .sq m
Vitosha Gardens – Bulgaria18,000 .sq m
Cotroceni Park, Bucharest 194,000 .sq m
Cotroceni Park, Bucharest 194,000 .sq m
Malina Gardens – Bulgaria 68,000 .sq m
Malina Gardens – Bulgaria 68,000 .sq m
Czech Republic
Pipera Gardens, Bucharest 230,000 .sq m
Pipera Gardens, Bucharest 230,000 .sq m
Cotroceni Park, Bucharest 194,000 .sq m
Cotroceni Park, Bucharest 194,000 .sq m
Romania
Serbia
Bulgaria
Korunni Dvur(253 units & 7,000 .sq m)
Korunni Dvur(253 units & 7,000 .sq m)
25
Europe
Germany
Poland
Latvia
North & west Germany 110,000 .sq m
North & west Germany 110,000 .sq m
Soleville – Riga 2,350 units
Soleville – Riga 2,350 units
Berlin 50,000 .sq mBerlin
50,000 .sq m
Metropolia – Riga 550 units
Metropolia – Riga 550 units
Wilanow One WarsawWilanow One Warsaw Osiedle EuropeskiKrakow 2,400 units
Osiedle EuropeskiKrakow 2,400 units
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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
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
Israel - Income Producing Properties
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Concorde – Bnei Brak 8,000 .sq m
Concorde – Bnei Brak 8,000 .sq m
Park Rehovot 15,000 .sq m
Park Rehovot 15,000 .sq m
Ramat Aviv Mall - Tel Aviv 27,500 .sq m Ramat Aviv Mall - Tel Aviv 27,500 .sq m Savionim Mall – Yehud 11,000 .sq m
Savionim Mall – Yehud 11,000 .sq m
Global Park – Lod 21,000 .sq m
Global Park – Lod 21,000 .sq m
Government Offices- Tel Aviv 29,000 .sq m
Government Offices- Tel Aviv 29,000 .sq m
City Centre – Haifa 10,500 .sq m
City Centre – Haifa 10,500 .sq m
Africa House - Tel Aviv2,600 .sq m
Africa House - Tel Aviv2,600 .sq m
Avia – Yehud 2,600 .sq m
Avia – Yehud 2,600 .sq m
Industrial
Offices
Shopping Malls
Israel - Income Producing Properties
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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
Israel - Africa Israel Residences
33
Hanevi’im Court, Jerusalem 102 units
Hanevi’im Court, Jerusalem 102 units
Savyoney Ramat AavivTel Aviv 400 units
Savyoney Ramat AavivTel Aviv 400 units
Savyon Tower Ramat Gan 151 units
Savyon Tower Ramat Gan 151 units
Platinum - Ramat Gan 84 units
Platinum - Ramat Gan 84 units
Sea Gate - Rishon Lezion 463 units
Sea Gate - Rishon Lezion 463 units
Israel - Africa Israel Residences
Lev Asavyonim – Petach Tikva1,282 units
Lev Asavyonim – Petach Tikva1,282 units
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Construction & Infrastructure
EuropeRussia & CISISRAEL
Residential
Commercial Infrastructure
Industrial
BOT & PFI
Offices
Construction Infrastructure
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
Construction & Infrastructure - Danya Cebus Ltd:
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Residence Commercial & office Infrastructure Industrial
Road 431Road 431
Cross Israel Highway - # 6Cross Israel Highway - # 6
Savyoney GivatiimSavyoney Givatiim Power Center JerusalemPower Center Jerusalem
Africa house- Tel AvivAfrica house- Tel Aviv
Keshev -LodKeshev -Lod
Givat SavionGivat Savion Police Headquarters Tel Aviv
Police Headquarters Tel Aviv
Construction & Infrastructure - Danya Cebus Ltd:
37
B.O.T. & P.F.I. Projects
Road 431 P.F.I. project –1.6 billion NIS
Highway # 6
Road 431
Prisons
DormitoriesHebrew University (Jerusalem)
Students Dormitories
Construction & Servicing
Cross-Israel Highway - # 6
Light RailwayTEL AVIV
22 km of Transportation routes in the
metropolis, TEL AVIV 11 Billion NIS
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AMERICAISRAEL
Offices
BOT & PFI
Refining
Distribution Asphalt
Energy
Energy
Energy
Alon Israel Oil Company
Alon USA
Dor Alon Energy
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
Alon Group focused on the energy and retail Sectors. The Goup operate businesses in threesegments: (1) USA Energy; (2) Israel Retail; and (3) Israel Energy
A nationwide chain of gas stations
& convenience stores
40
Related Industries
EuropeRussia & CISISRAEL
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
Mutual Funds &Asset Management
Asset Management
The Company specializes in asset management
The Company’s full-service approach enables it toprovide its clients with a variety of tailor-made financialpackages
Assets under management–2.4B NIS (as of Sep. 07)
The Company is active in advisory, design, managementand 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
Underwriting
44
Other Business Area
Other Business Area
Tadiran Telecom Ltd.
Innovative communications solutions
Israel PlusRussian speaking TV channel
Tourism & Leisure
Retail & Fashion
Blue Square Israel Ltd One of the largest Israeli supermarket chains (Co-Op)
Sea Group Swimwear fashion, designers & manufacturers
Africa Israel Hotels Ltd.
Manages 10 hotels (2,500 rooms) and 2 recreational
sites in Israel and abroad
Communications
& Media
46
Thank You
AFRICA ISRAEL For Further Information:
www.africa-israel.com