EBITDA EBITDA is a non-IFRS measure and is defined as earnings before financial expenses, net, taxes, depreciation and amortization. The Company presents this measure in order to enhance the understanding of the Company’s and Dorad’s historical financial performance and to enable comparability between periods. While the Company considers EBITDA to be an important measure of comparative operating performance, EBITDA should not be considered in isolation or as a substitute for net income or other statement of operations or cash flow data prepared in accordance with IFRS as a measure of profitability or liquidity. EBITDA does not take into account the Company’s or Dorad’s commitments, including capital expenditures, and restricted cash, accordingly, is not necessarily indicative of amounts that may be available for discretionary uses. Not all companies calculate EBITDA in the same manner, and the measure as presented may not be comparable to similarly-titled measures presented by other companies. The Company’s and Dorad’s EBITDA may not be indicative of the historic operating results nor is it meant to be predictive of potential future results. Ellomay Capital - Reconciliation of Net income (loss) to EBITDA (in € thousands) For the year ended For the year ended For the year ended For the year ended For the year ended December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 Net income (loss) for the period 7,323 4,886 8,110 (632) (7,961) Financing expenses (income), net 1,781 2,712 (2,076) 2,434 10,548 Taxes on income (tax benefit) 178 119 (1,739) 569 372 Depreciation 2,919 4,110 4,428 4,411 4,518 EBITDA 12,201 11,827 6,708 6,782 7,477 Dorad - Reconciliation of Net income to EBITDA (in NIS millions) For the year ended For the year ended December 31, 2016 December 31, 2017 Net income for the period 51 79 Financing expenses, net 219 242 Taxes on income 5 24 Depreciation and amortization 209 209 EBITDA 484 554 Use of NON-IFRS Financial Measures