EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1
Exhibit 99.1


Ellomay Capital Reports Results for the Three and Nine Months Ended September 30, 2019

Tel-Aviv, Israel, December 31, 2019 – Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported its unaudited financial results for the three and nine months ended September 30, 2019.

Ran Fridrich, CEO and a board member of Ellomay commented: “During the nine month period ended September 30, 2019 the Company operated in accordance with its business plan, while executing an extensive development and investment plan. Project development expenses increased by approximately 32% compared to the same period last year. Equity attributed to shareholders of the Company increased by approximately 26% during the period. The Talasol project (300 MW) in Spain is progressing according to plan and construction of more than 50% was already completed. The project is currently expected to commence commercial operation in Q4 of 2020. In addition, the Company is promoting the development of 550 MW PV in Spain and Italy”.

Financial Highlights

•
Revenues were approximately €15.4 million for the nine months ended September 30, 2019, compared to approximately €13.9 million for the nine months ended September 30, 2018. The increase in revenues is mainly a result of the commencement of operations of the Company’s waste-to-energy project in Oude Tonge, the Netherlands, in June 2018 and relatively higher levels of radiation in Italy during 2019 compared to 2018.
 
•
Operating expenses were approximately €5 million for the nine months ended September 30, 2019, compared to approximately €4.6 million for the nine months ended September 30, 2018. The increase in operating expenses is mainly attributable to additional operating expenses resulting from the commencement of operations at the Company’s waste-to-energy project in Oude Tonge, the Netherlands. Depreciation expenses were approximately €4.7 million for the nine months ended September 30, 2019, compared to approximately €4.4 million for the nine months ended September 30, 2018.
 
•
Project development costs were approximately €3.5 million for the nine months ended September 30, 2019, compared to approximately €2.6 million for the nine months ended September 30, 2018. The increase in project development costs is mainly attributable to consultancy expenses in connection with the project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.
 
•
General and administrative expenses were approximately €2.9 million for the nine months ended September 30, 2019, compared to approximately €2.8 million for the nine months ended September 30, 2018.
 
•
Company’s share of profits of equity accounted investee, after elimination of intercompany transactions, was approximately €2.4 million for the nine months ended September 30, 2019, compared to approximately €2.2 million in the nine months ended September 30, 2018.
 
•
Financing expenses, net was approximately €4.6 million for the nine months ended September 30, 2019, compared to approximately €1.8 million for the nine months ended September 30, 2018. The increase in financing expenses was mainly due to expenses in connection with exchange rate differences amounting to approximately €2.1 million in the nine months ended September 30, 2019, mainly in connection with the Company’s NIS denominated Debentures, the loan to an equity accounted investee and cash and cash equivalents, caused by the 11.3% devaluation of the euro against the NIS during this period, compared to income in connection with exchange rate differences amounting to approximately €0.5 million in the nine months ended September 30, 2018, caused by the 1.5% revaluation of the euro against the NIS during this period.
 
•
Taxes on income was approximately €0.9 million for the nine months ended September 30, 2019, compared to taxes on income of approximately €0.1 million for the nine months ended September 30, 2018. The lower taxes on income for the nine months ended September 30, 2018 resulted mainly from deferred tax income included in connection with the application of a tax incentive in the Netherlands claimable upon filing the relevant tax return by reducing the amount of taxable profit.
 

•
Net loss was approximately €3.8 million for the nine months ended September 30, 2019, compared to approximately €0.1 million for the nine months ended September 30, 2018.
 
•
Total other comprehensive income was approximately €13.8 million for the nine months ended September 30, 2019, compared to a loss of approximately €0.8 million for the nine months ended September 30, 2018. The change was mainly due to changes in fair value of cash flow hedges and from foreign currency translation differences on New Israeli Shekel denominated operations, as a result of fluctuations in the euro/NIS exchange rates.
 
•
Total comprehensive income was approximately €10 million for the nine months ended September 30, 2019, compared to a loss of approximately €0.9 million for the nine months ended September 30, 2018.
 
•
EBITDA was approximately €6.4 million for the nine months ended September 30, 2019, compared to approximately €6.2 million for the nine months ended September 30, 2018.
 
•
Net cash from operating activities was approximately €4.3 million for the nine months ended September 30, 2019, compared to approximately €4.6 million for the nine months ended September 30, 2018.
 
•
On July 17, 2019, the Company issued 800,000 ordinary shares to several Israeli classified investors in a private placement. The price per share in the Private Placement was set at NIS 39.20 (approximately $11) and the gross proceeds to the Company were approximately NIS 31.3 million (approximately €7.8 million).
 
•
On July 25, 2019, the Company issued NIS 89,065,000 (approximately €22.7 million) Series C Debentures in a public offering in Israel at a fixed annual interest rate of 3.3%. The net proceeds of the offering, net of related expenses such as consultancy fee and commissions were approximately NIS 87.8 million (approximately €22.3 million).

•
During July 2019, the Company completed the purchase of 49% of the companies that own the anaerobic digestion plans in Goor and Oude-Tonge, both in the Netherlands from Ludan and several entities affiliated with Ludan for an acquisition price of approximately €3 million.

•
On December 16, 2019, the Company announced its intention to redeem the entire outstanding principal of the Company’s Series A Debentures. The redemption is scheduled for January 5, 2020. Pursuant to the terms of the deed of trust governing the Series A Debentures, the early redemption amount will be the sum of approximately NIS 80.1 million (approximately €20.7 million) in principal, the sum of approximately NIS 0.05 million (approximately €0.01 million) in accrued interest and a prepayment charge of approximately NIS 5.7 million (approximately €1.5 million), amounting to an aggregate redemption amount of approximately NIS 85.9 million (approximately €22.2 million, based on the exchange rate as of December 30, 2019).
 
•
On December 23, 2019, the Company reported the sale of ten Italian indirect wholly-owned subsidiaries (the “Italian Subsidiaries”), which own twelve photovoltaic plants with an aggregate nominal capacity of approximately 22.6 MW. The agreed purchase price was €41 million for the cutoff date of December 31, 2018 and adjusted in connection with funds received by the Company from the Italian Subsidiaries during 2019 (approximately €2.3 million), resulting in a cash purchase price of approximately €38.7 million. Based on the information currently available, the Company estimates that it will record a profit of approximately €19 million in connection with the sale of the Italian Subsidiaries in its financial results for the fourth quarter of 2019. The profit currently expected to be recorded is an unaudited and unreviewed estimate and the actual results may be different from this estimation. The financial results of the Company included in this release do not reflect the sale of the Italian Subsidiaries and therefore are not indicative of future results of the Company.

•
As of December 1, 2019, the Company held approximately €59.1 million in cash and cash equivalents, approximately €6.5 million in Short-term deposits, approximately €2.3 million in marketable securities and approximately €11.2 million in restricted short-term and long-term cash and marketable securities.

Use of NON-IFRS Financial Measures

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 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 commitments, including capital expenditures, and restricted cash and, 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 EBITDA may not be indicative of the historic operating results of the Company; nor is it meant to be predictive of potential future results. A reconciliation between results on an IFRS and non-IFRS basis is provided in the last table of this press release.


About Ellomay Capital Ltd.
 
Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.
 
To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:
 

 •
Approximately 7.9MW of photovoltaic power plants in Spain and a photovoltaic power plant of approximately 9 MW in Israel;

•
9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about 6%-8% of Israel’s total current electricity consumption;

•
51% of Talasol, which is involved in a project to construct a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, Cáceres, Spain;

•
100% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V., project companies developing anaerobic digestion plants with a green gas production capacity of approximately 375 Nm3/h, in Goor, the Netherlands and 475 Nm3/h, in Oude Tonge, the Netherlands, respectively;

•
75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and Ellomay Pumped Storage (2014) Ltd., all of which are involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel.

Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi Raphael and Mr. Ran Fridrich. Mr. Nehama is one of Israel’s prominent businessmen and the former Chairman of Israel’s leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both have vast experience in financial and industrial businesses. These controlling shareholders, along with Ellomay’s dedicated professional management, accumulated extensive experience in recognizing suitable business opportunities worldwide. Ellomay believes the expertise of Ellomay’s controlling shareholders and management enables the Company to access the capital markets, as well as assemble global institutional investors and other potential partners. As a result, we believe Ellomay is capable of considering significant and complex transactions, beyond its immediate financial resources.
 
For more information about Ellomay, visit http://www.ellomay.com.
 
Information Relating to Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements.  The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including weather conditions, regulatory changes, changes in the supply and prices of resources required for the operation of the Company’s facilities (such as waste and natural gas), changes in demand and technical and other disruptions in the operations or construction of the power plants owned by the Company. These and other risks and uncertainties associated with the Company’s business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Kalia Weintraub
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Statements of Financial Position

   
December 31,
    
September 30,
    
September 30,
  
   
2018
    
2019
    
2019
  
   
Audited
    
Unaudited
    
Unaudited
  
   
€ in thousands
    
Convenience Translation into US$ in thousands
  
Assets
                  
Current assets
                  
Cash and cash equivalents
    
36,882
      
70,808
      
77,376
  
Marketable securities
    
2,132
      
2,303
      
2,517
  
Short term deposits
    
-
      
6,570
      
7,179
  
Restricted cash and marketable securities
    
4,653
      
15
      
16
  
Receivable from concession project
    
1,292
      
1,498
      
1,637
  
Financial assets
    
1,282
      
1,445
      
1,579
  
Trade and other receivables
    
12,623
      
10,239
      
11,189
  
     
58,864
      
92,878
      
101,493
  
Non-current assets
                        
Investment in equity accounted investee
    
27,746
      
33,391
      
36,488
  
Advances on account of investments
    
798
      
900
      
983
  
Receivable from concession project
    
25,710
      
27,891
      
30,478
  
Fixed assets
    
87,220
      
138,574
      
151,429
  
Right-of-use asset
    
-
      
4,165
      
4,551
  
Intangible asset
    
4,882
      
5,231
      
5,716
  
Restricted cash and deposits
    
2,062
      
11,226
      
12,267
  
Deferred tax
    
2,423
      
2,477
      
2,707
  
Long term receivables
    
1,455
      
1,674
      
1,829
  
Derivatives
    
-
      
23,966
      
26,189
  
     
152,296
      
249,495
      
272,637
  
Total assets
    
211,160
      
342,373
      
374,130
  
                         
Liabilities and Equity
                        
Current liabilities
                        
Current maturities of long term loans
    
5,864
      
7,051
      
7,705
  
Debentures
    
8,758
      
9,963
      
10,887
  
Trade payables
    
2,126
      
2,540
      
2,773
  
Other payables
    
3,103
      
4,610
      
5,038
  
     
19,851
      
24,164
      
26,403
  
Non-current liabilities
                        
Lease liability
    
-
      
3,987
      
4,357
  
Long-term loans
    
60,228
      
118,262
      
129,232
  
Debentures
    
42,585
      
66,495
      
72,663
  
Deferred tax
    
6,219
      
10,471
      
11,442
  
Other long-term liabilities
    
228
      
27
      
30
  
Derivatives
    
5,092
      
12,437
      
13,591
  
     
114,352
      
211,679
      
231,315
  
Total liabilities
    
134,203
      
235,843
      
257,718
  
                         
Equity
                        
Share capital
    
19,980
      
21,998
      
24,039
  
Share premium
    
58,344
      
64,155
      
70,106
  
Treasury shares
    
(1,736
)
    
(1,736
)
    
(1,897
)
Transaction reserve with non-controlling Interests
    
-
      
6,106
      
6,672
  
Reserves
    
1,169
      
9,569
      
10,457
  
Retained earnings (accumulated deficit)
    
758
      
(865
)
    
(945
)
Total equity attributed to shareholders of the Company
    
78,515
      
99,227
      
108,432
  
Non-Controlling Interest
    
(1,558
)
    
7,303
      
7,980
  
Total equity
    
76,957
      
106,530
      
116,412
  
Total liabilities and equity
    
211,160
      
342,373
      
374,130
  

* Convenience translation into US$ (exchange rate as at September 30, 2019: euro 1 = US$ 1.093)


Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (in thousands, except per share data)

   
For the year ended December 31,
    
For the three months ended
September 30,
    
For the nine months ended
September 30
    
For the nine months ended September 30,
  
   
2018
    
2018
    
2019
    
2018
    
2019
    
2019
  
   
Audited
    
Unaudited
    
Unaudited
    
Unaudited
  
   
€ in thousands
    
€ in thousands
    
€ in thousands
    
Convenience Translation into US$*
  
Revenues
    
18,117
      
5,720
      
5,132
      
13,871
      
15,435
      
16,867
  
Operating expenses
    
(6,342
)
    
(1,963
)
    
(1,594
)
    
(4,573
)
    
(5,049
)
    
(5,517
)
Depreciation expenses
    
(5,816
)
    
(1,597
)
    
(1,671
)
    
(4,364
)
    
(4,714
)
    
(5,151
)
Gross profit
    
5,959
      
2,160
      
1,867
      
4,934
      
5,672
      
6,199
  
                                                 
Project development costs
    
(2,878
)
    
(851
)
    
(757
)
    
(2,622
)
    
(3,471
)
    
(3,793
)
General and administrative expenses
    
(3,600
)
    
(785
)
    
(979
)
    
(2,762
)
    
(2,858
)
    
(3,123
)
Share of profits of equity accounted investee
    
2,545
      
1,713
      
2,351
      
2,214
      
2,382
      
2,603
  
Other income, net
    
884
      
-
      
-
      
73
      
-
      
-
  
Operating profit
    
2,910
      
2,237
      
2,482
      
1,837
      
1,725
      
1,886
  
                                                 
Financing income
    
2,936
      
518
      
572
      
1,857
      
1,442
      
1,576
  
Financing income (expenses) in connection with
  derivatives and other assets, net
    
494
      
31
      
535
      
316
      
995
      
1,087
  
Financing expenses
    
(5,521
)
    
(1,468
)
    
(2,592
)
    
(4,008
)
    
(7,049
)
    
(7,703
)
Financing expenses, net
    
(2,091
)
    
(919
)
    
(1,485
)
    
(1,835
)
    
(4,612
)
    
(5,040
)
                                                 
Profit (loss) before taxes on income
    
819
      
1,318
      
997
      
2
      
(2,887
)
    
(3,154
)
                                                 
Taxes on income
    
(215
)
    
(302
)
    
(399
)
    
(120
)
    
(913
)
    
(998
)
                                                 
Profit (loss) for the period
    
604
      
1,016
      
598
      
(118
)
    
(3,800
)
    
(4,152
)
Profit (loss) attributable to:
                                                
Owners of the Company
    
1,057
      
1,282
      
1,128
      
384
      
(1,623
)
    
(1,773
)
Non-controlling interests
    
(453
)
    
(266
)
    
(530
)
    
(502
)
    
(2,177
)
    
(2,379
)
Profit (loss) for the period
    
604
      
1,016
      
598
      
(118
)
    
(3,800
)
    
(4,152
)
Other comprehensive income (loss) items that after
                                                
  initial recognition in comprehensive income (loss)
                                                
  were or will be transferred to profit or loss:
                                                
Foreign currency translation differences for foreign operations
    
(787
)
    
270
      
8,129
      
(529
)
    
9,111
      
9,956
  
                                                 
Effective portion of change in fair value of
   cash flow hedges
    
(1,008
)
    
192
      
7,345
      
(532
)
    
6,977
      
7,624
  
Net change in fair value of cash flow hedges
   transferred to profit or loss
    
643
      
(183
)
    
(1,174
)
    
295
      
(2,278
)
    
(2,489
)
Total other comprehensive income (loss)
    
(1,152
)
    
279
      
14,300
      
(766
)
    
13,810
      
15,091
  
Total comprehensive income (loss) for the period
    
(548
)
    
1,295
      
14,898
      
(884
)
    
10,010
      
10,939
  
                                                 
Basic net income (loss) per share
    
0.10
      
0.12
      
0.10
      
0.04
      
(0.14
)
    
(0.16
)
Diluted net income (loss) per share
    
0.10
      
0.12
      
0.10
      
0.04
      
(0.14
)
    
(0.16
)

* Convenience translation into US$ (exchange rate as at September 30, 2019: euro 1 = US$ 1.093)


Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Statements of Changes in Equity (in thousands)

                                                   
Non-
        
                                                   
controlling
    
Total
  
   
Attributable to shareholders of the Company
    
Interests
    
Equity
  
               
Retained
earnings
(accumulated
deficit)
          
Translation
reserve from
foreign
operations
          
Transaction
reserve with
non-controlling
Interests
                    
                                                       
   
Share
capital
    
Share
Premium
        
Treasury
shares
        
Hedging
Reserve
                        
                               
Total
              
         
€ in thousands
  
For the nine months ended
  September 30, 2019:
                                                            
Balance as at January 1, 2019
    
19,980
      
58,344
      
758
      
(1,736
)
    
1,396
      
(227
)
    
-
      
78,515
      
(1,558
)
    
76,957
  
Loss for the period
    
-
      
-
      
(1,623
)
    
-
      
-
      
-
      
-
      
(1,623
)
    
(2,177
)
    
(3,800
)
Other comprehensive loss
  for the period
    
-
      
-
      
-
      
-
      
3,701
      
4,699
      
-
      
8,400
      
5,410
      
13,810
  
Total comprehensive loss
  for the period
    
-
      
-
      
(1,623
)
    
-
      
3,701
      
4,699
      
-
      
6,777
      
3,233
      
10,010
  
                                                                                 
Transactions with owners of the
                                                                                
  Company, recognized directly
  in equity:
                                                                                
Sale of shares in subsidiaries to
                                                                                
  non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
5,439
      
5,439
      
5,374
      
10,813
  
Buy of shares in subsidiaries from
                                                                                
  non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
667
      
667
      
254
      
921
  
Issuance of ordinary shares
    
2,010
      
5,797
      
-
      
-
      
-
      
-
      
-
      
7,807
      
-
      
7,807
  
Options exercise
    
8
      
11
      
-
      
-
      
-
      
-
      
-
      
19
      
-
      
19
  
Share-based payments
    
-
      
3
      
-
      
-
      
-
      
-
      
-
      
3
      
-
      
3
  
                                                                                 
Balance as at September 30, 2019
    
21,998
      
64,155
      
(865
)
    
(1,736
)
    
5,097
      
4,472
      
6,106
      
99,227
      
7,303
      
106,530
  


Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont’d)

                                                   
Non-
        
                                                   
controlling
    
Total
  
   
Attributable to shareholders of the Company
    
Interests
    
Equity
  
               
Retained
earnings
(accumulated
deficit)
          
Translation
reserve from
Foreign
operations
          
Transaction
reserve with
non-controlling
Interests
                    
                                                       
   
Share
capital
    
Share
Premium
        
Treasury
Shares
        
Hedging
Reserve
          
Total
              
                                             
         
US$ in thousands*
  
For the nine months ended
  September 30, 2019:
                                                            
Balance as at January 1, 2019
    
21,834
      
63,756
      
828
      
(1,897
)
    
1,526
      
(248
)
    
-
      
85,799
      
(1,704
)
    
84,095
  
Loss for the period
    
-
      
-
      
(1,773
)
    
-
      
-
      
-
      
-
      
(1,773
)
    
(2,379
)
    
(4,152
)
Other comprehensive loss
  for the period
    
-
      
-
      
-
      
-
      
4,044
      
5,135
      
-
      
9,179
      
5,912
      
15,091
  
Total comprehensive loss
  for the period
    
-
      
-
      
(1,773
)
    
-
      
4,044
      
5,135
      
-
      
7,406
      
3,533
      
10,939
  
                                                                                 
Transactions with owners of the
                                                                                
  Company, recognized directly
  in equity:
                                                                                
Sale of shares in subsidiaries to
                                                                                
  non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
5,943
      
5,943
      
5,873
      
11,816
  
Buy of shares in subsidiaries from
                                                                                
  non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
729
      
729
      
278
      
1,007
  
Issuance of ordinary shares
    
2,196
      
6,335
      
-
      
-
      
-
      
-
      
-
      
8,531
      
-
      
8,531
  
Options exercise
    
9
      
12
      
-
      
-
      
-
      
-
      
-
      
21
      
-
      
21
  
Share-based payments
    
-
      
3
      
-
      
-
      
-
      
-
      
-
      
3
      
-
      
3
  
                                                                                 
Balance as at September 30, 2019
    
24,039
      
70,106
      
(945
)
    
(1,897
)
    
5,570
      
4,887
      
6,672
      
108,432
      
7,980
      
116,412
  

* Convenience translation into US$ (exchange rate as at September 30, 2019: euro 1 = US$ 1.093)



Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont’d)

                                                   
Non-
        
                                                   
controlling
    
Total
  
   
Attributable to shareholders of the Company
    
Interests
    
Equity
  
               
Retained
earnings
(accumulated
deficit)
          
Translation
reserve from
foreign
operations
          
Transaction
reserve with
non-controlling
Interests
                    
                                                       
   
Share
capital
    
Share
Premium
        
Treasury
        
Hedging
Reserve
          
Total
              
               
shares
                              
         
€ in thousands
  
For the three months ended
  September 30, 2019:
                                                            
Balance as at June 30, 2019
    
19,988
      
58,358
      
(1,993
)
    
(1,736
)
    
2,855
      
(1,699
)
    
5,614
      
81,387
      
1,217
      
82,604
  
Loss for the period
    
-
      
-
      
1,128
      
-
      
-
      
-
      
-
      
1,128
      
(530
)
    
598
  
Other comprehensive loss
  for the period
    
-
      
-
      
-
      
-
      
2,242
      
6,171
      
-
      
8,413
      
5,887
      
14,300
  
Total comprehensive loss
  for the period
    
-
      
-
      
1,128
      
-
      
2,242
      
6,171
      
-
      
9,541
      
5,357
      
14,898
  
                                                                                 
Transactions with owners of the
                                                                                
  Company, recognized directly
  in equity:
                                                                                
Sale of shares in subsidiaries to
                                                                                
  non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
(175
)
    
(175
)
    
475
      
300
  
Buy of shares in subsidiaries from
                                                                                
  non-controlling interests
    
-
      
-
      
-
      
-
      
-
      
-
      
667
      
667
      
254
      
921
  
Issuance of ordinary shares
    
2,010
      
5,797
      
-
      
-
      
-
      
-
      
-
      
7,807
      
-
      
7,807
  
Options exercise
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
Share-based payments
    
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
      
-
  
                                                                                 
Balance as at September 30, 2019
    
21,998
      
64,155
      
(865
)
    
(1,736
)
    
5,097
      
4,472
      
6,106
      
99,227
      
7,303
      
106,530
  


Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont’d)

                                             
Non-
        
                                             
controlling
    
Total
  
         
Attributable to shareholders of the Company
    
Interests
    
Equity
  
               
Retained
earnings
(accumulated
deficit)
          
Translation
reserve from
foreign
operations
                          
                               
Hedging
Reserve
                    
   
Share
capital
    
Share
Premium
        
Treasury
shares
              
Total
              
                                         
   
€ in thousands
  
                                                       
For the nine months ended
  September 30, 2018:
                                                      
Balance as at January 1, 2018
    
19,980
      
58,339
      
(299
)
    
(1,736
)
    
2,219
      
138
      
78,641
      
(1,141
)
    
77,500
  
Loss for the period
    
-
      
-
      
384
      
-
      
-
      
-
      
384
      
(502
)
    
(118
)
Other comprehensive loss
  for the period
    
-
      
-
      
-
      
-
      
(540
)
    
(237
)
    
(777
)
    
11
      
(766
)
Total comprehensive loss
  for the period
    
-
      
-
      
384
      
-
      
(540
)
    
(237
)
    
(393
)
    
(491
)
    
(884
)
                                                                         
Transactions with owners of
  the Company, recognized
  directly in equity:
                                                                        
Share-based payments
    
-
      
3
      
-
      
-
      
-
      
-
      
3
      
-
      
3
  
                                                                         
Balance as at September 30, 2018
    
19,980
      
58,342
      
85
      
(1,736
)
    
1,679
      
(99
)
    
78,251
      
(1,632
)
    
76,619
  



Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont’d)

                                             
Non-
        
                                             
controlling
    
Total
  
         
Attributable to shareholders of the Company
    
Interests
    
Equity
  
               
Retained
          
Translation
                          
               
earnings
          
reserve from
                          
   
Share
    
Share
    
(accumulated
    
Treasury
    
foreign
    
Hedging
                    
   
capital
    
Premium
    
deficit)
    
shares
    
operations
    
Reserve
    
Total
              
   
€ in thousands
  
                                                       
For the three months ended
  September 30, 2018:
                                                      
Balance as at June 30, 2018
    
19,980
      
58,341
      
(1,197
)
    
(1,736
)
    
1,397
      
(108
)
    
76,677
      
(1,354
)
    
75,323
  
Loss for the period
    
-
      
-
      
1,282
      
-
      
-
      
-
      
1,282
      
(266
)
    
1,016
  
Other comprehensive loss
  for the period
    
-
      
-
      
-
      
-
      
282
      
9
      
291
      
(12
)
    
279
  
Total comprehensive loss
  for the period
    
-
      
-
      
1,282
      
-
      
282
      
9
      
1,573
      
(278
)
    
1,295
  
                                                                         
Transactions with owners of
  the Company, recognized directly
  in equity:
                                                                        
Share-based payments
    
-
      
1
      
-
      
-
      
-
      
-
      
1
      
-
      
1
  
                                                                         
Balance as at September 30, 2018
    
19,980
      
58,342
      
85
      
(1,736
)
    
1,679
      
(99
)
    
78,251
      
(1,632
)
    
76,619
  


Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Changes in Equity (in thousands) (cont’d)

                                             
Non-
        
                                             
controlling
    
Total
  
         
Attributable to shareholders of the Company
    
Interests
    
Equity
  
               
Retained
          
Translation
                          
               
earnings
          
reserve from
                          
   
Share
    
Share
    
(accumulated
    
Treasury
    
foreign
    
Hedging
                    
   
capital
    
premium
    
deficit)
    
shares
    
operations
    
Reserve
    
Total
              
   
€ in thousands
  
                                                       
For the year ended December 31, 2018:
                                                      
                                                       
Balance as at January 1, 2018
    
19,980
      
58,339
      
(299
)
    
(1,736
)
    
2,219
      
138
      
78,641
      
(1,141
)
    
77,500
  
Profit for the year
    
-
      
-
      
1,057
      
-
      
-
      
-
      
1,057
      
(453
)
    
604
  
Other comprehensive income (loss)
  for the year
    
-
      
-
      
-
      
-
      
(823
)
    
(365
)
    
(1,188
)
    
36
      
(1,152
)
Total comprehensive income (loss)
  for the year
    
-
      
-
      
1,057
      
-
      
(823
)
    
(365
)
    
(131
)
    
(417
)
    
(548
)
                                                                         
Transactions with owners of the
  Company, recognized directly
  in equity:
                                                                        
Share-based payments
    
-
      
5
      
-
      
-
      
-
      
-
      
5
      
-
      
5
  
                                                                         
Balance as at December 31, 2018
    
19,980
      
58,344
      
758
      
(1,736
)
    
1,396
      
(227
)
    
78,515
      
(1,558
)
    
76,957
  


Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Interim Statements of Cash Flow (in thousands)

   
For the year ended December 31,
    
For the three months ended
September 30,
    
For the nine months ended
September 30,
    
For the nine months ended September 30, 2019
  
   
2018
    
2018
    
2019
    
2018
    
2019
    
2019
  
   
Audited
    
Unaudited
    
Unaudited
    
Unaudited
  
   
€ in thousands
    
Convenience Translation into US$*
  
Cash flows from operating activities
                                    
Profit (loss) for the period
    
604
      
1,016
      
598
      
(118
)
    
(3,800
)
    
(4,152
)
Adjustments for:
                                                
Financing expenses, net
    
2,091
      
919
      
1,485
      
1,835
      
4,612
      
5,040
  
Depreciation
    
5,816
      
1,597
      
1,671
      
4,364
      
4,714
      
5,151
  
Share-based payment transactions
    
5
      
1
      
-
      
3
      
3
      
3
  
Share of profits of equity accounted investees
    
(2,545
)
    
(1,713
)
    
(2,351
)
    
(2,214
)
    
(2,382
)
    
(2,603
)
Payment of interest on loan from an equity accounted investee
    
3,036
      
-
      
-
      
1,176
      
370
      
404
  
Change in trade receivables and other receivables
    
(17
)
    
(356
)
    
842
      
(200
)
    
(902
)
    
(986
)
Change in other assets
    
37
      
(355
)
    
(762
)
    
(220
)
    
(1,470
)
    
(1,606
)
Change in receivables from concessions project
    
1,431
      
454
      
483
      
1,076
      
1,129
      
1,234
  
Change in accrued severance pay, net
    
15
      
(2
)
    
-
      
15
      
8
      
9
  
Change in trade payables
    
633
      
(37
)
    
(651
)
    
291
      
414
      
452
  
Change in other payables
    
(1,565
)
    
271
      
1,636
      
(39
)
    
2,690
      
2,939
  
Taxes on income
    
215
      
302
      
399
      
120
      
913
      
998
  
Income taxes paid
    
(77
)
    
(28
)
    
(19
)
    
(44
)
    
(19
)
    
(21
)
Interest received
    
1,835
      
518
      
446
      
1,406
      
1,281
      
1,400
  
Interest paid
    
(4,924
)
    
(206
)
    
(582
)
    
(2,803
)
    
(3,237
)
    
(3,537
)
Net cash provided by operating activities
    
6,590
      
2,381
      
3,195
      
4,648
      
4,324
      
4,725
  
                                                 
Cash flows from investing activities
                                                
Acquisition of fixed assets
    
(3,708
)
    
(455
)
    
(11,316
)
    
(3,061
)
    
(55,835
)
    
(61,014
)
Acquisition of subsidiary, net of cash acquired
    
(1,000
)
    
-
      
-
      
-
      
(1,000
)
    
(1,093
)
Repayment of loan from an equity accounted investee
    
1,540
      
-
      
-
      
490
      
-
      
-
  
Proceeds from marketable securities
    
3,316
      
3,316
      
-
      
3,316
      
-
      
-
  
Proceed from settlement of derivatives, net
    
664
      
187
      
-
      
410
      
532
      
581
  
Proceed (investment) in restricted cash, net
    
(3,107
)
    
(3,393
)
    
1,356
      
(1,789
)
    
(3,863
)
    
(4,221
)
Investment in short term deposit
    
-
      
-
      
(6,302
)
    
-
      
(6,302
)
    
(6,887
)
Repayment (grant) Loan to others
    
(3,500
)
    
-
      
412
      
-
      
3,912
      
4,275
  
Net cash used in investing activities
    
(5,795
)
    
(345
)
    
(15,850
)
    
(634
)
    
(62,556
)
    
(68,359
)
                                                 
Cash flows from financing activities
                                                
Repayment of long-term loans and finance lease obligations
    
(17,819
)
    
(201
)
    
(252
)
    
(14,928
)
    
(4,410
)
    
(4,819
)
Repayment of Debentures
    
(4,668
)
    
-
      
-
      
-
      
(4,532
)
    
(4,952
)
Proceeds from options
    
-
      
-
      
-
      
-
      
19
      
21
  
Sale of shares in subsidiaries to non-controlling interests
    
-
      
-
      
(126
)
    
-
      
13,936
      
15,229
  
Acquisition of shares in subsidiaries from non-controlling interests
    
-
      
-
      
(2,961
)
    
-
      
(2,961
)
    
(3,236
)
Issuance of ordinary shares
    
-
      
-
      
7,807
      
-
      
7,807
      
8,531
  
Proceeds from issuance of Debentures, net
    
-
      
-
      
22,317
      
-
      
22,317
      
24,387
  
Proceeds from long term loans, net
    
34,745
      
14
      
192
      
34,515
      
59,086
      
64,567
  
Net cash provided by (used in) financing activities
    
12,258
      
(187
)
    
26,977
      
19,587
      
91,262
      
99,728
  
                                                 
Effect of exchange rate fluctuations on cash and cash equivalents
    
(133
)
    
(73
)
    
951
      
(177
)
    
896
      
979
  
Increase in cash and cash equivalents
    
12,920
      
1,776
      
15,273
      
23,424
      
33,926
      
37,073
  
Cash and cash equivalents at the beginning of the period
    
23,962
      
45,610
      
55,535
      
23,962
      
36,882
      
40,303
  
Cash and cash equivalents at the end of the period
    
36,882
      
47,386
      
70,808
      
47,386
      
70,808
      
77,376
  

* Convenience translation into US$ (exchange rate as at September 30, 2019: euro 1 = US$ 1.093)

Ellomay Capital Ltd. and its Subsidiaries

Reconciliation of Net Profit (Loss) to EBITDA (in thousands)

   
For the year ended December 31,
    
For the three months ended
September 30,
    
For the nine months ended
September 30,
    
For the nine months ended September 30,
  
   
2018
    
2018
    
2019
    
2018
    
2019
    
2019
  
   
Unaudited
  
   
€ in thousands
    
Convenience Translation into US$*
  
Net Profit (loss) for the period
    
604
      
1,016
      
598
      
(118
)
    
(3,800
)
    
(4,152
)
Financing expenses, net
    
2,091
      
919
      
1,485
      
1,835
      
4,612
      
5,040
  
Taxes on income
    
215
      
302
      
399
      
120
      
913
      
998
  
Depreciation
    
5,816
      
1,597
      
1,671
      
4,364
      
4,714
      
5,151
  
EBITDA
    
8,726
      
3,834
      
4,153
      
6,201
      
6,439
      
7,037
  

* Convenience translation into US$ (exchange rate as at September 30, 2019: euro 1 = US$ 1.093)



Information for the Company’s Debenture Holders

Pursuant to the Deeds of Trust governing the Company’s Series A, B and C Debentures (together, the “Debentures”), the Company is required to maintain certain financial covenants. For more information, see Item 5.B of the Company’s Annual Report on Form 20-F and “Liquidity and Capital Resources” under Exhibit 99.3 of a Form 6-K submitted to the Securities and Exchange Commission on September 25, 2019.

Net Financial Debt

As of September 30, 2019, the Company’s Net Financial Debt (as such term is defined in the Deeds of Trust of the Company’s Debentures) was approximately €43.8 million (consisting of approximately €135.4 million of short-term and long-term debt from banks and other interest bearing financial obligations and approximately €76.5 million in connection with the Series A Debentures issuances (in January and September 2014), the Series B Debentures issuance (in March 2017) and the Series C Debentures issuance (in July 2019), net of approximately €79.7 million of cash and cash equivalents, short-term deposits and marketable securities and net of approximately €88.7 million of project finance and related hedging transactions of the Company’s subsidiaries).
 
Information for the Company’s Series B Debenture Holders

The following is an internal pro forma consolidated statement of financial position of the Company as at September 30, 2019. This information is required under the Series B Deed of Trust in connection with the adoption of IFRS 16 “Leases” by the Company and provides the consolidated statement of financial position of the Company as of the date set forth below after elimination of the effects of adoption of IFRS 16. Based on the pro forma statement of financial position, the ratio of the Company’s equity (which the Company calculated in line with the definition of Balance Sheet Equity in the Series B Deed of Trust)  to balance sheet as at June 30, 2019 was 29.2%, triggering a right of the holders of our Series B Debentures to an increase in the annual interest rate applicable to the Series B Debentures of 0.5% until such time as we publish financial results reflecting an increase in such ratio to a minimum of 30%. Based on the pro forma statement of financial position, the ratio of the Company’s equity, as set forth above, to balance sheet as of September 30, 2019 was 31.6%, triggering a decrease in the annual interest rate applicable to the Series B Debentures of 0.5% to its original rate of 3.69%. The Company will provide further information concerning the updated interest rate in a Form 6-K to be furnished to the Securities and Exchange Commission.


Unaudited Internal Pro Forma Statement of Financial Position

   
September 30,
  
   
2019
  
   
Unaudited
  
   
Pro Forma
€ in thousands
  
Assets
      
Current assets
      
Cash and cash equivalents
    
70,808
  
Marketable securities
    
2,303
  
Short term deposits
    
6,570
  
Restricted cash and marketable securities
    
15
  
Receivable from concession project
    
1,498
  
Financial assets
    
1,445
  
Trade and other receivables
    
10,239
  
     
92,878
  
Non-current assets
        
Investment in equity accounted investee
    
33,391
  
Advances on account of investments
    
900
  
Receivable from concession project
    
27,891
  
Fixed assets
    
138,574
  
Right-of-use asset
    
-
  
Intangible asset
    
5,231
  
Restricted cash and deposits
    
11,226
  
Deferred tax
    
1,423
  
Long term receivables
    
1,674
  
Derivatives
    
23,966
  
     
244,276
  
Total assets
    
337,154
  
         
Liabilities and Equity
        
Current liabilities
        
Current maturities of long term loans
    
7,051
  
Debentures
    
9,963
  
Trade payables
    
2,540
  
Other payables
    
4,382
  
     
23,936
  
Non-current liabilities
        
Lease liability
    
-
  
Long-term loans
    
118,262
  
Debentures
    
66,495
  
Deferred tax
    
9,430
  
Other long-term liabilities
    
27
  
Derivatives
    
12,437
  
     
206,651
  
Total liabilities
    
230,587
  
         
Equity
        
Share capital
    
21,998
  
Share premium
    
64,155
  
Treasury shares
    
(1,736
)
Transaction reserve with non-controlling Interests
    
6,106
  
Reserves
    
9,569
  
Accumulated deficit
    
(828
)
Total equity attributed to shareholders of the Company
    
99,264
  
Non-Controlling Interest
    
7,303
  
Total equity
    
106,567
  
Total liabilities and equity
    
337,154
  


Information for the Company’s Series C Debenture Holders

The Deed of Trust governing the Company’s Series C Debentures includes an undertaking by the Company to maintain certain financial covenants, whereby a breach of such financial covenants for two consecutive quarters is a cause for immediate repayment. As of September 30, 2019, the Company was in compliance with the financial covenants set forth in the Series C Deed of Trust as follows: (i) the Company’s shareholders’ equity was €106.5 million, (ii) the ratio of the Company’s Net Financial Debt (as set forth above) to the Company’s CAP, Net (defined as the Company’s consolidated shareholders’ equity plus the Net Financial Debt was 29% and (iii) the ratio of the Company’s Net Financial Debt to the Company’s Adjusted EBITDA(1) was 3.7.

_____________________________
(1) The term “Adjusted EBITDA” is defined in the Series C Deed of Trust as earnings before financial expenses, net, taxes, depreciation and amortization, where the revenues from the Company’s operations, such as the Talmei Yosef project, are calculated based on the fixed asset model and not based on the financial asset model (IFRIC 12), and before share-based payments. The Series C Deed of Trust provides that for purposes of the financial covenant, the Adjusted EBITDA will be calculated based on the four preceding quarters, in the aggregate. The Adjusted EBITDA is presented in this press release as part of the Company’s undertakings towards the holders of its Series C Debentures. For a general discussion of the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA see above under “Use of NON-IFRS Financial Measures.”

The following is a reconciliation between the Company’s net profit (loss) and the Adjusted EBITDA for the four-quarter period ended September 30, 2019:

   
For the four quarter period ended September 30, 2019
  
   
Unaudited
  
   
€ in thousands
  
Net loss for the period
    
(3,078
)
Financing expenses, net
    
4,868
  
Taxes on income
    
1,008
  
Depreciation
    
6,166
  
Adjustment to revenues of the Talmei Yosef project due to calculation based on the fixed asset model
    
2,883
  
Share-based payments
    
4
  
Adjusted EBITDA as defined the Series C Deed of Trust
    
11,851