Kardan N.V.
• 9M 2020: €52.4 million net loss to equity holders (9M 2019: net loss of €92.7 million), is mostly due to the loss
of the discontinued operations (Water Infrastructure) as a result of provisions for losses on projects and doubtful
debts, impairment of the investment property and interest expenses on the debentures.
• Q3 2020: € 21.2 million net loss to equity holders (Q3 2019: net loss of € 46.2 million).
Real Estate
• 9M 2020: the net loss to equity holders amounted to €15.2 million (9M 2019: net profit of €4.5 million), mainly
as a result of a decrease of €19.6 million in the value of the Galleria Dalian shopping mall. The loss was partially
mitigated by the profit from deliveries of apartments in the Dalian project and the joint venture projects.
• The COVID-19 pandemic had some impact on the development activities and a more significant impact on the
investment property activities. As well as the aforesaid marking down of the value of the mall, a rental discount
of €0.8 million in total was granted to tenants, as shops in Galleria Dalian had to be temporarily closed during
the lockdown periods in 2020.
Water infrastructure (discontinued operation)
• 9M 2020: the net loss attributable to equity holders amounted to €26.6 million mostly due to provisions for
doubtful debts, forfeited guarantees and impairment losses mainly in relation to terminated projects (9M 2019:
net loss of €34.4 million which included an impairment of Kardan’s investment in TGI of €16 million).
• In September 2020, TGI reached an agreement with its financing banks regarding their continued support of
TGI’s operations.
Kardan N.V. –Q3 2020 Results – Page 2
• The outbreak of the COVID-19 virus has also impacted the water infrastructure activities. Whilst in a significant
number of countries in which it operates, the projects in which TGI is involved continued in full or in part; in
some countries the projects stopped completely for a limited period. In addition, the economic crisis following
the COVID-19 outbreak impacts the economic activity in some of the countries where TGI is operating. However,
TGI’s assessment is that its projects in these affected countries will continue albeit at a slower pace than
previously estimated. Without derogating from the aforesaid, it should be noted that most of the loss of TGI
during the period is due to the termination of projects and delays in the execution of projects due to the financial
position of Tahal, which did not allow them to continue.
Other
• The Company did not repay the February 2018, 2019 and 2020 scheduled payments of principal and interest
to the Company’s Debenture Holders (series A and B). As a result, since February 2018 the Company is in
default. Subsequent to the balance sheet date, the Company paid interest to debenture holders series B in the
amount of approximately €7.5 million (NIS 29.5 million).
Condensed Consolidated Income Statement Kardan N.V.