Azrieli Group

ISRAELOPPORTUNITY2011
11 th Annual Investors' Conference, London July 7
ISRAELOPPORTUNITY2011
TABLE OF CONTENTS
GREETINGS >>
TASE: Saul Bronfeld, Chairman & Ester Levanon, CEO.............5
FEATURES >>
The Tel-Aviv stock Exchange – Market Review..........................6
TASE- News & Events................................................................10
TASE 2011 by the Numbers.......................................................13
Key Issues for International Investors.....................................14
THE COMPANIES >>
Azrieli Group..............................................................................16
Bank Leumi................................................................................18
Delek Group...............................................................................20
Gazit-Globe................................................................................22
Israel Discount Bank.................................................................24
Mellanox....................................................................................26
Shufersal...................................................................................28
Strauss Group............................................................................30
TASE Members- Contacts for International Investors.............32
Conference Agenda...................................................................34
>>>
DEAR FRIENDS,
On behalf of the Tel-Aviv Stock Exchange (TASE), we are
honored to welcome you to “Israel Opportunity 2011”.
When we came together last year, Israel’s accession
to the O.E.C.D. had just been announced and MSCI’s
upgrade of the Israeli market to “Developed Market”
status had just gone into effect. This past year has
been one of transition for the Tel Aviv Stock Exchange,
as we reposition ourselves within the global financial
community. Enhancing our global footprint and
international accessibility to our markets, we reach
out to a new set of investors who may have overlooked
the rich opportunities inherent in our capital market.
As in the past, the Israeli economy and capital
market have exhibited resilience and strength in
the face of surrounding economic and geopolitical
challenges. This strength and stability has inspired
investor confidence, which in turn has facilitated the
economy’s continual trajectory of growth. During the
2008 global financial crisis, Israel’s did not have to
step in to bail out financial institutions. Being the first
developed market to turn the corner in the “great
recession” which followed, Israel’s growth rate has far
outpaced that of other O.E.C.D. economies.
The adept leadership of our economic policy-makers
has enabled Israel not only to remain “open for
business” but open to new opportunities as well.
Innovation, as exhibited in Israeli high-tech and
bio-med industries, continues to propel our uniquely
energetic economy. Energy may well prove to be
Israel’s next frontier, as natural gas fields discovered
off the coast are commercially developed.
The Tel Aviv Stock Exchange provides a window for
investors to tap into these opportunities. As you
will witness over the course of this conference, this
window takes on increasingly panoramic contours
over time. TASE has much to offer investors seeking
both value and growth.
Thank you for joining us as for a day of fruitful
discourse and exchange.
Sincerely,
Saul Bronfeld • Chairman
Ester Levanon • CEO
>> 5
>>> TASE Market Review
January-June 2011
Trading on the Tel Aviv Stock Exchange (TASE) in the opening months of 2011, as on markets
worldwide, was highly volatile. As of mid June leading TASE share price indices had declined.
In the months of April and May trading volume shrank, echoing the consolidation of falling share prices.
A significant slowdown befell primary market activity as well, when compared period-on-period to 2010.
Trading in the bond market was also marked by volatility, but closed the period on an upswing with
increasing prices. Period-on-period, both trading volume and primary market activity in the bond
market increased relative to 2010.
EQUITY MARKET
The TA-25 index opened 2011 on a downswing, which reversed
in March with a bull rally. The index reached a record level of
1341.89 points on 21 April, only to be followed by the return of
the bearish trend, which intensified in the second half of May.
In sum, the TA-25 Index lost approximately 7% since the
beginning of the year, after gaining 23% in 2010.
Similar trends characterized the other leading TASE indices. The TA
Banks Index was off 7.5%, after increasing 14% in 2010. Gas & oil
exploration retreated 13.5%, after a stellar 58% increase in 2010.
The factors having a negative impact on trading trends
include: the four consecutive interest rate bumps which by
June cumulatively increased interest rates in Israel by 1.25%
to a level of 3.25%; geo-political developments in the Middle
East; apprehension rover intensification of the credit crisis in
European countries; the economic crisis in the United States;
and the events unleashed by the earthquake in Japan.
These factors prevailed over positive macro-economic
developments at home, such as the release of figures indicating
the continuation of economic growth and the expansion of
business activity in Israel. The latest growth forecasts for 2011
released by the Bank of Israel indicate a 5% growth rate, a
forecast Israel appears to be well on its way to realizing. It is
supported by the estimated annualized 4.7% growth achieved in
the first quarter of 2011 and follows a 4.6% growth rate in 2010.
Unemployment in Israel retreated to 6% in the first quarter of
2011, down from 6.6% in 2010.
All returns are in US $ terms updated to June 20, 2011.
>> 6
On the April 2011, TASE launched five new share price indices:
»»Thee new industry indices – TA Oil & Gas index, TA-Com
index (communications and media), and TA - Insurance
index, each of which includes the leading companies in their
respective industries.
»»The TA BlueTech 50 Index replaces the Tel-Tech index and
includes the fifty largest constituent market cap companies of
the TA-Technology and Biomed Indices.
»»The new TA Technology index is a composite index of
all electronics, computers, cleantech and technology
investment companies.
Average daily trading volume on the equities market during
the first quarter of 2011 came to US $600 million. In April and
May, however, trading activity was off 20%. For the five-month
period overall, average daily turnover came to US $560 million –
somewhat higher than last year’s average.
The trading of options on the TA-25 index was also characterized
by a slight increase in activity and relatively high volatility. On
average, 315 thousand contracts were traded daily over the fivemonth period, as opposed to an average 290 thousand over the
same period in 2010.
There was a spike in activity in dollar options, given the high
volatility in the dollar/NIS exchange rate. An average 45
thousand contracts changed hands daily, a 40% increase over
last year’s average turnover. On 20 January an all-time record of
203 thousand contract traded.
TA-25 INDEX AND INTERNATIONAL INDICES
In US$ terms
(2005-6/2011)
»»44 private placements were placed since the beginning of the
year, raising an additional US $170 million, while US $160
million entered corporate coffers from the exercise of warrants.
200%
Since the beginning of the year 55 companies have published shelf
registration prospectuses laying a solid foundation for primary
market activity in the coming two years.
150%
100%
50%
0%
NIKKEI FTSE CAC
225
100
40
S&P Dow- NASDAQ DAX
500 Jones 100
MSCI TA-25
EM
In the primary market, public companies raised a mere US $0.7
billion, as opposed to US $1.1 billion during the same period
last year:
»»During the first five months of the year, 17 companies
undertook public offerings while 17 initiated rights offerings,
raising a total of US $380 million. Biomed firms and oil and
gas exploration limited partnerships were particularly active,
raising US $120 million each. Six IPOs were completed, four
of which of biomed companies, which raised cumulative total
of US $100 million. At the beginning of June, car importer,
Carasso Motors completed a US $75 million IPO, and its
shares will join the TA-100 index.
THE EQUITY MARKET
In March the shares of CAD/CAM company, Cimatron, Ltd. and
American software company, LivePerson, Inc., began trading on
TASE. Both companies simultaneously trade on NASDAQ. These
shares joined the ranks of TASE’s 48 dual listings, which trade on
TASE and the major U.S. exchanges. Another six TASE companies
are cross-listed on regulated European markets.
Since the beginning of the year, foreign residents increased their
investments in TASE-traded shares by some US $760 million. This
follows 2010, during which foreign investors withdrew investments
to the tune of US $1,650 million during the first half of the year,
apparently in anticipation of MSCI’ s upgrade of the Israeli market
to “developed market” status, and injected US $850 million during
the second half.
Within the framework of the it's privatization program, the Israeli
government sold for US $ 370 million part of its remaining
holdings in Leumi Bank, equaling 5% of the banks’ equity. After
the placement, the government still has a 6% stake in the bank.
2008
2009
2010
1-5/2011
• Average Daily Turnover (including ETNs) (US $ millions)
547
432
547
561
• Market Capitalization (excluding ETNs) (US $ billions)
107
189
227
217
• Capital Raised* (US $ billions)
1.8
1.7
3.4
0.5
2
4
22
8
(46%)
76%
23%
(7%)
12.1
15.8
15.4
15.5
1.0
1.6
2.1
1.9
• Number of New Listed Companies**
• TA-25 Index (US $ terms)
• Price/Earnings
• Price/Book >>>
* Excluding issues abroad of the dual listed companies.
** Including new dual-listed companies, Excluding new index products issuers.
>> 7
>>> TASE Market Review >>> Cont.
EXCHANGE TRADED PRODUCTS
Twenty four new series of exchange-traded index products have
been issued since the beginning of the year. Some 418 series of
these products currently trade on TASE, of which 291 are ETNs on
Israeli and foreign share price indices, 105 on bond price indices
and 22 commodity-linked ETNs and other products. 72 of the ETNs
are complex, while 58 are short ETNs.
The public holdings (AUM) in exchange-traded products reached
a record level of US $16.5 billion in April 2011 – an increase of
US $1 billion since the beginning of the year. It is worth noting
that the public holdings of exchange traded products that track
baskets of share price indices, primarily international, increased
by approximately US $1.2 billion, while the public holdings of
products tracking baskets of bonds and commodities decreased by
US $0.2 billion.
Since the beginning of the year, the average turnover in equity
ETNs has been 25% higher than last year and constituted 20% of
the total trading volume in shares on TASE, as opposed to 16%
in 2010. At the same time, the turnover of bond ETNs fell and
accounted for 18% of the total turnover of non-government bonds,
slightly lower than last year.
DEBT MARKET
As in the equity market, 'volatility' reigned the TASE bond
market as well during the first six months of 2011. In contrast
to the equity market, however, the bond market ended the
period with a 2.5%-3.5% upswing for all bond classes.
The government continued to reduce new bond issues on the
local market, and as a result, there was a surplus of bond
redemptions equaling US $1.8 billion for the January-May 2011
period. This follows a net US $2.6 billion raised in 2010.
CPI-linked government bonds and the non-linked “Shahar”
bonds increased 2.3% in dollar terms (a 0.3% decrease in
terms of NIS). CPI-linked corporate bonds stood out in the
pack, gaining 3%, while foreign currency-linked corporate
bonds rose 3.5%, in tandem with the appreciation of the NIS
against the dollar of 2.5%.
During the first five months of the year, the government
raised a gross US $6.8 billion – approximately 72% of which
was raised in non-linked NIS denominated bonds and 28% in
CPI-linked bonds. At the same time, some US $8.6 billion
were redeemed.
Average turnover in the bond market, which came to US $1
billion, exceeded the 2010 average by some 17%. Non-linked
government “Shahar” bonds were primarily responsible for this
increase in trading activity.
THE FIXED INCOME MARKET
• Average Daily Turnover (including ETNs) (US $ millions)
• Market Capitalization (excluding ETNs) (US $ billions)
• Capital Raised in Non Government Bonds* (US $ billions)
• General Bond Index
* Including issues to institutionals.
>> 8
For its part, there was brisk activity in the primary corporate
debt market, with US $5.5 billion raised in public offerings
and private placements, an increase of 30% over the same
period last year.
2008
2009
2010
1-5/2011
1,120
1,035
875
1,020
145
174
201
205
6.6
9.3
11.5
5.5
0.5%
16.4%
14.9%
2.6%
>>> The TA-25 Index
The TA-25 Index is the TASE's flagship index. It was first published in 1992 under
the name "MAOF Index". It serves as an underlying asset for options and futures,
Exchange Traded Notes (ETNs) and Short ETNs traded on TASE.
The constituent shares of the TA-25 index are the 25
TASE traded shares with the highest market capitalization,
for which the free float is at least 25% of total shares.
A float-adjusted index, the weighting of the index is
determined by the value of the free float for each
constituent share. A weight cap of 10% applies.
The composition of the index is reviewed and updated
in June and December each year and a “fast track”
mechanism has been established for IPO & new dual listed
companies that are listed on TASE between these dates.
Total market capitalization of the constituent shares in
June 2011 came to US $136 billion, which constitutes
approximately 67% of the total TASE market cap.
Average daily turnover for TA-25 shares during the first five
months of 2011 came to US $300 million, which is 66% of
the total average daily turnover of TASE equities.
The distribution by market cap of TA-25 shares categorized
by industry groups is presented in the graph below:
22%
8%
14%
21%
26%
9%
• Chemicals & Manufacturing (14%)
• Pharmaceuticals (21%)
• Energy & Infrasucture (9%)
• Finance (26%)
• Telecom & Technology (22%)
• Holding companies (8%)
TA-25 INDEX COMPANIES(1)
SECURITY NAME
MARKET
WEIGHTING(2)
CAPITALIZATION
(US$ millions)
1. Teva(3)
46,310
2. Israel Chemicals
18,517
9.50%
7,869
10.58%
3. Perrigo(3)
10.22%
4. Israel Corporation
7,856
3.87%
5. Bezeq
6,709
10.38%
6. Bank Leumi
6,659
9.88%
7. Bank Poalim
6,251
9.74%
8. Azrieli Group
3,288
1.62%
9. Cellcom(3)
2,861
3.36%
10. Partner
(3)
11. Delek Group
2,414
2.84%
2,399
1.66%
12. Makhteshim-Agan
2,356
2.79%
13. Bank Mizrahi Tefahot
2,268
2.66%
14. Nice(3)
2,104
4.05%
15. Bank Discount
2,069
3.16%
16. Elbit Systems(3)
2,006
2.34%
17. Avner
1,932
1.71%
18. Gazit Globe
1,835
1.63%
19. Delek Drilling
1,745
0.86%
20. Osem
1,728
0.85%
21. Strauss Group
1,561
1.07%
22. Paz Oil
1,552
1.36%
23. Bazan
1,496
1.03%
24. Isramco
1,473
2.20%
25. Discount Investment
1,290
0.64%
136,548
100.00%
TOTAL
(1) As of June 16, 2011.
(2) The weight is calculated according to the value of the float in each share.
Weighting is adjusted according to the 10% cap - updated quarterly.
(3) Dual-Listing company
>> 9
NEWS & EVENTS >>
2010-2011 >>
THE PAST YEAR HAS BEEN EVENTFUL
FOR THE TASE. SOME HIGHLIGHTS ARE
SUMMARIZED BELOW:
MAY 2010: TASE TURNS EYE TOWARDS EUROPE
Israel’s accession to the O.E.C.D. and the upgrade
its Israel’s capital market by MSCI, FTSE and S&P
to “developed market status” have enabled Israel to
deepen ties to the European financial community.
During this past year Israel became and “Observer
Member” of the Federation of European Securities
Exchanges (FESE), the first non-European country
granted this status.
Independently, the European Securities and
Market Authority (ESMA), the EU securities
regulator, recently recognized the prospectus
requirements under Israeli law as being roughly
equivalent to those in the EU Prospectus Directive.
Israel is the first non-EU country to receive such
recognition. While requiring the conclusion of
bilateral agreements between Israeli and individual
European regulators to become fully operational,
the EU’s decision facilitates the cross-listings of
shares on TASE and European exchanges. One
such bilateral agreement has already been signed
between the Israel Securities Authority and the
French AMF and currently companies incorporated
in France and listed on an AMF-regulated markets,
such as the NYSE Euronext Paris Bourse, can
dually list shares on TASE.
>> 10
DECEMBER 2010: THOMAS MURRAY UPGRADES
TASE CLEARING HOUSE RATING TO A+
The implementation of a series of improvements to
clearing and settlement procedures, emergency backup
and recovery systems and risk management practices
have landed the TASE Clearing House a Public CSD rating
of A+ by the Thomas Murray global custody analysis firm
early this year. This overall excellent rating indicates
a low-risk profile for TASE’s clearing and settlement
infrastructures and stems from improvements in
component financial and operational risk assessments.
Enhancements introduced over the past year include:
• The transfer of clearing corporate bonds to a T+1
clearing and settlement cycle.
• Facilitation of automated contact between TASECH
members operating on the SWIFT network and their
foreign clients.
• Increased automation and improvements in the
calculation of margins, collateral and limitations on the
open derivative positions.
• Improvements in the monitoring of algorithmic trading
and quote generation.
TASE remains dedicated to consolidating its trading
and clearing infrastructure through the deployment of
advanced technological systems and solutions as well as
the adoption of effective risk management practices.
>>
Caption of photo: Ester
Levanon, TASE CEO, Sandy
Frucher, Vice Chairman
NASDAQ OMX and
representatives of 14 Israeli
biomed companies opening
trade on NASDAQ.
MARCH 2011: TASE AND CYPRUS STOCK EXCHANGE
SIGN MOU
The Tel Aviv Stock Exchange (TASE) and the Cyprus
Stock Exchange (CSE) signed a Memorandum of
Understanding to enhance cooperation between the
two exchanges. Both the Cypriot and Israeli presidents
attended the signing ceremony.
TASE has signed similar agreements with the London
Stock Exchange, NASDAQ/OMX, NYSE-Euronext, the
Shanghai Stock Exchange and the TMX Group, which
owns the Toronto Stock Exchange.
>>
DECEMBER 2010: ISRAELI BIOMED COMPANIES RING
NASDAQ OPENING BELL
The Tel Aviv Stock Exchange (TASE) in conjunction with
NASDAQ co-hosted an investor conference highlighting
Israel’s life science industries. The conference was held in
NASDAQ’s Times Square headquarters was launched with
an opening bell ceremony featuring the CEOs of the 14
Israeli biomed companies that presented at the conference
well as the heads of NASDAQ and the TASE. Comprised
primarily of small-cap biotech and medical device
companies, “Biomed” is a one of the most challenging and
fastest growing sectors in Israel’s capital market. More
than 50 biomed companies trade on TASE, some of which
are dually-listed on US national markets as well.
Bellow: TASE Chairman of
the Board, Saul Bronfeld, and CEO, Ester Levanon,
CSE Chairman George
Koufaris, and CEO, Nondas
CI. Metaxas and the Cypriot
and Israeli presidents.
MARCH 2011: TECH COMPANIES DRIVE TASE
DUAL LISTINGS
Over the past year a number of leading technology
companies opted to dually list their shares on TASE
and the major U.S. markets. These include Protalix, a
biotech drug development firm; Allot Communications,
specializing in bandwidth management solutions, and
Pluristem Therapeutics, developer of regenerative
therapeutic products. The latest to join the family of
TASE dual listings is LivePerson, Inc., an American
IT firm specializing in solutions for real-time online
intelligent engagement for enterprises. There are
currently more than 50 companies dually listed on TASE
and major US markets.
>> 11
NEWS & EVENTS >> CONTINUE >>
>>
In the Right Photo:
Manning the opening bell
button: Nazareth’s mayor,
Ramiz Jaraisy; Yair Seroussi,
CEO Bank Hapoalim; Avi
Hefetz, CEO the Israel
Export & International
Cooperation Institute; Ester
Levanon, CEO TASE, and
Arab entrepreneurs Badia
Tannous, Imad Afifi, Imad
Talhami , Julia Zaher, Ali
Kadmani and Issa Khoury.
>>
The Jersey Delegation
opening trade on TASE
APRIL 2011: NEW TASE SHARE PRICE INDICES
ACCENT GROWTH INDUSTRIES
As part of its policy to position Tel Aviv has a financial
hub for technology issues, TASE launched new share
price indices. With a focus on technology, the new
indices enhance investor opportunities to tapping
into some of Israel’s most dynamic growth industries.
Representing TASE’s large-cap tech shares, the TA
BlueTech-50, index replaces the Tel-Tech index and now
covers biomed and cleantech as well as electronics, IT,
communications companies. The TA-Technology index is
a composite sectoral index, which includes all shares of
electronics, communications, IT, cleantech and hi-tech
investment companies. Other new indices launched in
April include the TA-Com (communications & media)
index, the TA Oil & Gas index, TA-Insurance index and
the Tel-Div,(a composite index of dividend-distributing
companies that replaces the Tel Div-20 index).
As of July 2011, vendors can launch ETNs and other
exchange traded products on the new indices, as well
as the Biomed Index, which was introduced by TASE in
March 2010.
MAY 2011: TASE BULLISH ON ARAB BUSINESS
TASE’s opening bell was rung from Nazareth. The
ceremony coincided with the opening of the 2011 Arab
Business Conference, which was attended by leading
members of Israel’s business community.
MAY 2011: CHANNELING COOPERATION WITH JERSEY
A delegation of 28 public and private sector leaders from
the States of Jersey, headed by Senator Alan Maclean,
Minister for Economic Development and Senator
Freddie Cohen, Assistant Chief Minister for International
Relations, visited Israel. The aim of the delegation was
to promote trade and investment relations, focusing on
financial and professional services.
MAY 2011: NEW STOCK OPTION OFFERINGS
TASE launched 5 new stock options: 2 on Israel’s
third and fourth largest commercial banks and 3 on
major limited partnerships in Israel’s budding energy
industry: Israel Discount Bank, Mizrachi-Tefahot
Bank, Ratio Oil Exploration, Avner Oil Exploration and
Isramco Negev 2.
>> 12
TASE BY THE NUMBERS
AS OF MAY 2011
613
Companies
149
TASE-listed
726
TASE-listed
with TASE-listed equities
technology companies
debt instruments
56
US $755
US $4.4
dual-listed on TASE and
foreign exchanges
all-time record daily turnover
in T-bills (MAKAM)
(7/4/2010)
all-time record daily turnover on
equity market on eve of israel’s
MSCI upgrade to “developed
market” status (26/5/2010)
Companies
US $560
Milllion
average daily TASE turnover in shares
in January-May 2011
126,392
Contracts
all-time record daily turnover on
stock options (25/5/2010)
416
TASE-traded ETNs
Million
7
IPOs
Billion
25
New ETNs
raising US $170 Million
in January-June 2011
in January-May 2011
58
202,869
biomed companies
all-time record daily turnover
of dollar options (20/1/2011)
27
216
TASE-listed
TASE members
5 of which are large
international banks
Contracts
Employees
136 of which are women
>> 13
>>>
Key Issues For International Investors
»»INVESTOR PROTECTION
TASE investors are afforded a level of protection on par
with that of the most advanced markets. The regulatory
framework focuses on effective disclosure and corporate
governance safeguards. The World Bank's Doing
Business ranks Israel fifth in investor protection several
years running. The Tel-Aviv Stock Exchange holds the status
of Designated Offshore Securities Market by the U.S. SEC.;
Israeli regulation of the primary market has also been
recognized as "equivalent" to that under the EU
Prospectus Directive by the French Autorité des Marches’
Financiers (AMF).
As of January 2008 all companies traded on the TASE must
report according to IFRS, using XBRL, which renders the
financial data filed in Hebrew comprehensible in English.
»»REGULATION AND INVESTOR PROTECTION
The Israel Securities Authority (ISA) is in charged with
securities market regulation. It supervises the Tel-Aviv Stock
Exchange, approves its by-laws, and conducts stock watch
operations on trading activity. The ISA is modeled on the U.S.
Securities and Exchange Commission and is responsible for
protecting shareholder interests, insuring compliance with
full and fair disclosure and uncovering stock manipulation,
securities fraud and other violations of securities and money
laundering laws.
»»TRANSPARENCY
Israel's Securities Law provides a highly advanced legal
framework for supervision and enforcement based on
the principle of full and fair disclosure. ISA protects
investors by ensuring that public companies properly
disclose price-sensitive information and comply with
reporting requirements. The 1999 Companies Law sets out
a comprehensive and modern regulatory framework for
corporate governance, compliant with OECD principles.
>> 14
GLOBALIZATION
MSCI upgrade of the Israeli market from “Emerging” to
“Developed market” status came into effect on May 26th, 2010.
The MSCI Israel index will be included in the MSCI World
Index and in the MSCI EAFE Index. Only securities of
companies domiciled in Israel that have a listing on the TelAviv Stock Exchange will be eligible at that point.
FTSE has already taken similar measures, upgrading Israel to
developed market status in June 2008.
»»NO RESTRICTIONS, TAX-FREE
International investors face no regulatory restrictions on
buying or selling TASE-listed securities or on repatriating the
proceeds upon liquidation. Foreign residents are exempt from
Israeli capital gains tax.
»»TASE MEMBERS
The TASE is a private company limited by guarantee and
mutually owned by its members. TASE members are Israeli
banks and brokerage firms, including The Bank of Israel.
International banks and investment houses are eligible for
either standard or remote membership. Currently, five major
international investment banks are TASE members including
UBS, Deutsche Bank, HSBC, Citibank and Merrill Lynch
International (MLI) who is TASE’s first remote member.
»»TRADING, CLEARING & SETTLEMENT
Trading in shares takes place Sunday through Thursday from
8:30 until 16:30. All securities are traded through the Tel-Aviv
Continuous Trading (TACT) system for automated continuous
and simultaneous trading. The TACT system incorporates
mechanisms to protect investors, including circuit breakers
to suspend trading in cases of extreme price fluctuations.
The TASE Clearing House and TASE Derivatives Clearing
House clear all securities and derivatives transactions
executed on and off the stock exchange.
THE COMPANIES >>>
>> 15
>>> Azrieli Group
• Danna J. Azrieli • Vice Chairman • Azrieli Group
Danna Azrieli is the vice Chairman of the Azrieli Group, one of Israel’s most successful real estate
companies specializing in commercial real estate, shopping malls and office buildings. Danna Azrieli is
part of the group of the controlling shareholders of the Azrieli Group.
The Azrieli Group owns a controlling share of the publicly traded company Granite HaCarmel where Danna
serves as a director.
Danna is also the founder and president of Candan Residences Inc, a development company currently
building luxury sea view condominiums in Herzliah Pituach, Israel. In the philanthropic realm, Danna is
the Chairman of the Azrieli Foundation in Israel and a director of the Azrieli Foundation in Canada and the
Chairman of the International Board of Governors for Shenkar College of Design and Engineering.
Danna is the author of the book One Step Ahead, which is the story of how her father managed to escape
and survive Nazi-occupied Poland and his journey to Palestine in 1942. The book was published by Yad
Vashem in 1999. Danna has a Bachelor of Arts in Sociology from Swarthmore College (1990), a Juris Doctor
in law from Vermont Law School (1994). Danna is admitted to practice law in Massachusetts and Israel.
Danna was born in Montreal, Canada. She moved to Israel in 2000 and is married to Australian born Danny
Hakim. They have two children aged 5 and 6.
A
zrieli Group owns and operates Israel’s
foremost nationwide chain of incomeproducing commercial real estate properties.
The Azrieli Group is listed on the Tel Aviv 25
index, Tel Aviv Real Estate 15, and is the only Israeli
company included in the EPRA index.
In 2010, the Azrieli Group conducted the most
significant private IPO in the history of the Tel Aviv
Stock Exchange and raised an unprecedented sum
of NIS 2.5 billion. The Azrieli Group is the biggest
Real-Estate company operating in Israel in terms of
market cap and equity.
In 1983, Mr. David Azrieli (C.M, CC.Q, M.Arch), built the
first ever shopping mall in Israel in Ramat-Gan (the
Ayalon Mall). Since then, the Azrieli Group's activities
have grown significantly, while the quality of its
operations and assets has been continually enhanced.
Up to date, the Azrieli Group owns a total leasable
area of offices and shopping malls of 666,000 sqm,
with another 330,000 sqm under construction. The
>> 16
company wholly owns eleven of Israel’s class A
shopping malls and the biggest business complex in
Israel – the Azrieli Center in Tel-Aviv.
The Azrieli Group has a controlling interest (60.7%)
in Granite HaCarmel, a holding company. Its main
holdings include a network of gas station complexes
(Sonol); trade, marketing and distribution of refined
oil (Supergas); water desalination, wastewater
purification and sludge treatment facilities (GES); and
manufacturing and distribution of building finishing
products, including paint, plaster products and
complementary products (Tambour).
Azrieli Group holds 20% of the credit card company
Leumi Card and has 4.8% holdings in Bank Leumi
Le-Israel Ltd., all strong brands on the Israeli
market.
Azrieli Group continues to seek opportunities for
the continued growth and development of income
producing assets - mainly in Israel.
>>>
AZRIELI GROUP - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: AZRG
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-25, TA Real-Estate 15
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume....................3.6
(US $ millions)
Shares outstanding....................121,272,760
HISTORICAL PRICE
Security Price
)US $ Cents(
3,000
Market value (US $ millions).................3,286
Last price ............................................$27.09
2,500
P/E ratio (12 months)..................................9.3
ROE (12 months)...................................11.2%
2,000
2010
Q3
STOCK OWNERSHIP (June 2011)
Q4
INCOME STATEMENT (US $ millions)
Total revenues
25%
75%
2011
Q1
Dec.2010
Q2
Q1 2010
Q1 2011
1,788
419
512
Operating income
544
65
97
Total net income
354
41
52
Net income attributable to shareholders
345
38
47
Earnings per share
3.19
0.42
0.38
Total assets
6,014
4,695
6,344
Total liabilities
2,767
2,585
3,054
Total equity
3,247
2,110
3,290
Equity attributable to shareholders
3,128
2,007
3,158
BALANCE SHEET
• Major shareholders (75.0%)
Azrieli Holdings (75.0%)
• Float (25.0%)
>> 17
>>> Bank Leumi
• Galia Maor • President and CEO • Bank Leumi le-Israel B.M.
Galia Maor joined Bank Leumi in 1991 as Deputy General Manager and in 1995 was appointed
President and CEO.
Ms. Maor began her career at the Bank of Israel and served in various positions from 1963 to 1989.
From 1982 through 1987, Ms. Maor held the position of Supervisor of Banks.
In 1987, Ms. Maor was appointed Senior Director at the Bank of Israel where she was in charge of
banking legislation, restructuring of the banking system and capital market supervision. Ms. Maor is a
member of the Advisory Committee for banking issues at the Bank of Israel.
Ms. Maor holds various non-governmental board positions. Among others, she is a member of the
Board of Governors of the Hebrew University of Jerusalem and of the Open University of Israel.
Ms. Maor also serves as Chairperson of the Friends of "Yeladim - Fair Chance for Children" and
Chairperson of the INSEAD Israel Council.
Ms. Maor holds a BA in Economics and Statistics and a MBA from the Hebrew University of Jerusalem.
Ms. Mrs. Maor was awarded an honorary PhD from the Technion, Bar- Ilan University and Ben Gurion
University and honorary degrees from the Open University of Israel, Netanya Academic College, and the
College of Management Academic Studies.
L
Leumi is Israel’s largest bank and leading
international financial group.
Founded in 1902, Leumi encompasses a
network of 264 branches in Israel and 72
offices strategically located in key financial centers
in 18 countries throughout the world, including
New York, London, Zurich and Luxembourg.
With 13,000 employees and over two million
customers worldwide, Leumi specializes in
providing services for large corporations and
mid-sized companies, international financing, and
wealth management for private banking customers.
In Israel, Leumi commands a 30% market share,
which is based on a wide and diversified clientele.
The bank is active in retail, commercial and
corporate banking, including construction and real
estate, global private banking, mortgages, and
capital market and credit card operations.
Principal Israeli subsidiaries include Leumi
>> 18
Mortgage Bank Ltd, The Arab Israel Bank Ltd.,
Leumi Card Ltd., Leumi Partners Ltd., Leumi
Securities and Investments, Leumi Capital Market
Services Ltd., Leumi L.P. Ltd., Leumi Real Holdings,
Leumi Industrial Development Ltd., Leumi
Agricultural Development Ltd., Leumi Leasing &
Investments Ltd., Leumi Finance Company Ltd.
and The Bank Leumi le-Israel Trust Co. Ltd.
Principal foreign subsidiaries are located in
the US, the UK, Switzerland, Luxembourg and
Romania. In addition, the Group has holdings in
non-banking sectors.
Leumi customers benefit from innovative products
and sophisticated services, advanced banking
technologies, tailored solutions and over 100 years
of sound investment expertise. Throughout the
world, Leumi gives its customers the convenience
of a local bank and the sophistication of a
multinational institution.
>>>
BANK LEUMI - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: LUMI
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-25 , Finance, TA-Banks, Maala SRI
HISTORICAL PRICE
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume..................29.1
(US $ millions)
Shares outstanding.................1,473,551,221
Market value (US $ millions) ................6,523
Last price ..............................................$4.43
P/E ratio (12 months)..................................9.7
ROE (12 months)...................................10.3%
Security Price
)US $ Cents(
500
400
300
200
2005
STOCK OWNERSHIP (June 2011)
2006
2007
INCOME STATEMENT (US $ Millions)
Income from financing activities
before credit loss expenses
15.6%
84.4%
2008
Dec.2010
2009
Q1 2010
2010
Q1 2011
2,094
487
557
Operating profit before taxes
865
227
290
Net profit before attribution to
noncontrolling interests
681
161
169
Net profit attributable to shareholders
670
161
166
Earnings per share
0.45
0.11
0.11
Total assets
92,468
85,546
Credit to the public, net
63,111
55,915
64,657
Deposits from the public
70,325
65,871
71,318
Total equity
6,758
6,189
6,664
Equity attributable to shareholders
6,669
6,113
6,574
BALANCE SHEET
• Major shareholders (15.6%)
Shlomo Eliahu Holdings (9.6%)
The State of Israel(6.0%)
• Float (84.4%)
94,371
>> 19
>>> Delek Group
• Mr. Asaf Bartfeld • President and Chief Executive Officer • Delek Group Ltd.
Mr. Bartfeld is President and CEO of Delek Group, and has been in this position since 2003. Mr.
Bartfeld has had a long and successful career with the Delek Group, joining the Company in 1996
and serving in numerous executive positions including deputy CEO and Chief Financial Officer.
In his role as Delek Group’s President & CEO, Mr. Bartfeld has overseen the group’s
transformation into Israel’s leading energy exploration and production Company. With 20 years
of extensive experience, Mr. Bartfeld’s leadership has enabled the Group to grow and flourish.
Throughout his tenure, he has successfully guided the Group through many strategic
consolidations and acquisitions. Mr. Bartfeld also serves as a Director on the boards of many
of the Group's subsidiaries.
Mr. Bartfeld holds a B.A. in Economics from Tel Aviv University.
T
The Group, that began in 1951 as the Delek,
Israel Fuel Corporation, is listed on the Tel
Aviv Stock Exchange, and is a member of the
TA25 index of leading Israeli companies. The
Group is controlled by internationally renowned
businessman, Mr. Isaac Tshuva. Throughout the
years, Delek Group’s management has prided itself
with its hands-on and proactive investment approach,
identifying early opportunities and developing them
into successful global businesses.
Delek Group has a long standing track record for
recognizing and realizing opportunities. With its
long term vision, constructive approach and sound
financial standing, the Group leverages its assets
with a clear purpose: to build successful, market
leading businesses benefiting their investors,
customers, employees and the community at large all, with a clear view to long term value creation.
The Group’s focus is primarily on the energy,
infrastructure and financial sectors. Current
>> 20
portfolio companies are in the fields of oil and
gas exploration; fuel stations in Israel, the US and
Europe; refining in the US; power plants; water
desalination, financial services and insurance; and
automotive import. Over the years, the Company
has generated significant value for shareholders
culminating in the distribution of its record dividend
to shareholders of over 1 billion shekels in 2010, a
dividend yield of approximately 11%.
Together with its partners, Delek Group’s
subsidiaries discovered Israel’s first natural gas
reservoir, Yam Tethys, in 1999, which has been
providing gas since 2004. In 2009, a new era for the
Israeli energy sector began when Delek together
with its partners discovered two huge natural-gas
reservoirs off the northern coast of Israel– 8.7 trillion
cubic feet (TCF) at the Tamar well and 16 TCF at the
Leviathan well. Both the Tamar and Leviathan wells
are the largest deepwater gas discoveries in the
world in the past decade, and commercialization of
the gas is expected in the coming years.
>>>
DELEK GROUP - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: DLEKG
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-25, Tel-Div, Tel-Bond 20
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume....................7.3
(US $ millions)
Shares outstanding......................11,377,262
Market value (US $ millions).................2,433
Last price ..........................................$213.87
P/E ratio (12 months)..................................5.0
ROE (12 months)...................................67.6%
HISTORICAL PRICE
Security Price
)US $ Cents(
28,000
24000
20,000
16000
12,000
8000
4,000
0
STOCK OWNERSHIP (June 2011)
2006
2007
2008
2010
2011
Dec.2010
Q1 2010
Q1 2011
12,558
2,767
3,769
Operating income
345
75
172
Total net income
551
93
89
Net income attributable to shareholders
479
55
60
Earnings per share
42.5
4.9
5.3
Total assets
25,893
23,203
27,622
Total liabilities
24,519
21,956
26,257
1,374
1,248
1,365
747
558
716
INCOME STATEMENT (US $ millions)
Total revenues
34.6%
65.4%
2009
BALANCE SHEET
•
Major shareholders (65.4%)
Isaac Tshuva (64.3%)
• Float (34.6%)
Total equity
Equity attributable to shareholders
>> 21
>>> Gazit-Globe
• Roni Soffer • President • Gazit-Globe
Mr. Soffer is the President of Gazit-Globe. Since joining the company in 1997, Mr. Soffer has fulfilled several
managerial and leadership positions. During his tenure at Gazit-Globe, Mr. Soffer has acquired extensive
expertise in the healthcare and retail real-estate sectors and has been closely involved in the Group’s
worldwide M&A activity and in the development of its public platforms.
Mr. Soffer is also President and CEO of Gazit Group USA, Vice Chairman of Gazit America and Executive
Chairman of ProMed Properties and Royal Senior Care, both Gazit-Globe private subsidiaries specializing in
the healthcare real-estate industry. Mr. Soffer previously served as President and CEO of ProMed Properties and Royal Senior Care. As President
and CEO, Mr. Soffer developed Gazit-Globe's healthcare platform to over $550 million in asset value. Mr.
Soffer also previously held the position of Vice President and Head of Capital Markets at Gazit-Globe. Mr. Soffer holds a B.A. in Economics and an L.L.B in Law, both from The College of Management
Academic Studies, Israel.
G
azit-Globe (TASE: GLOB) is one of the world’s
leading multinational real estate companies
engaged in the acquisition, development and
management of income-producing properties.
The company focuses on necessity-driven real
estate, primarily supermarket-anchored shopping
centers in urban growth markets with high barriers to
entry and attractive demographic trends. In addition,
the company is active in the healthcare real estate
sector, owning and operating medical office buildings
and senior housing businesses in North America.
Gazit-Globe is listed on the Tel Aviv Stock Exchange
and is included in the TA-25 and the Real-Estate 15
indices. Gazit-Globe operates internationally through
its publicly-traded and privately-held subsidiaries.
Its public subsidiary companies are listed on several
major stock exchanges including the New York Stock
Exchange, the Toronto Stock Exchange, the Helsinki
Stock Exchange, Euronext Amsterdam and the Vienna
Stock Exchange. The Group operates in more than
20 countries, owns and manages over 660 properties
>> 22
with a gross leasable area of more than 6.8 million
square meters, has a consolidated total asset value of
approximately US$18 billion and a gross annualized
income of about US$1.75 billion. Since establishing
its first real estate operations in the United States
in 1991, Gazit-Globe has accumulated significant
expertise across a broad range of core competencies,
including acquiring, operating, managing, leasing,
developing, redeveloping, repositioning and improving
the performance of supermarket-anchored shopping
centers. It has also demonstrated its ability to
leverage this expertise and successfully implement
its business model in many countries around the
world. Gazit-Globe’s primary objective is the creation
of value through long-term maximization of cash flow
and capital appreciation from its growing real estate
portfolio. Gazit-Globe’s knowledge and expertise,
combined with its proactive management style
and disciplined acquisition strategy, has enabled
it to grow its business consistently and expand its
portfolio into other asset classes and geographies.
>>>
GAZIT-GLOBE - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: GLOB
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-25, TA Real-Estate 15, Tel-Div, Maala SRI, Tel-Bond 20
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume....................5.1
(US $ millions)
Shares outstanding....................154,465,394
Market value (US $ millions).................1,842
Last price ............................................$11.92
P/E ratio (12 months)................................11.6
ROE (12 months)...................................26.3%
HISTORICAL PRICE
Security Price
)US $ Cents(
1,400
1,200
1,000
800
600
400
2006
STOCK OWNERSHIP (June 2011)
2007
2008
INCOME STATEMENT (US $ millions)
Total revenues
40.4%
59.6%
2009
Dec.2010
2010
2011
Q1 2010
Q1 2011
1,490
349
415
Operating income
968
149
246
Total net income
453
85
72
Net income attributable to shareholders
223
59
-5
Earnings per share
1.58
0.42
-0.03
Total assets
14,807
13,514
16,268
Total liabilities
10,533
9,948
11,585
Total equity
4,274
3,566
4,683
Equity attributable to shareholders
1,667
1,374
1,736
BALANCE SHEET
• Major shareholders (59.6%)
Norstar Holdings (Formerly Gazit Inc.) 58.5%
• Float (40.4%)
>> 23
>>> Israel Discount Bank Ltd.
>>> Israel Discount Bank
• Dr. Joseph (Yossi) Bachar • Chairman of the Board of Directors • Israel Discount Bank Ltd.
Dr. Joseph (Yossi) Bachar has been the Chairman of the Board of Israel Discount Bank since January
2010. Prior to joining the Bank, Dr. Bachar managed his own consulting firm from 2007 to 2009.
From 2003 through 2007 Dr. Bachar served as Director General of the Ministry of Finance. During
his tenure, Dr. Bachar led most of the major economic affairs of the Israeli Government. He was in
charge of advancing structural reforms and privatization processes, the most important of which is a
comprehensive reform in the Israeli capital market known as the "Bachar Reform".
Prior to joining the Ministry of Finance, Dr. Bachar served as Managing Partner of Arthur Andersen in Israel
for more than eight years. In 2002, following the dissolution of Arthur Andersen Worldwide, Dr. Bachar led
the process of repositioning the Andersen practice in Israel and later - its merger with Ernst & Young.
Dr. Bachar holds a B.A. in Economics and Accounting from the Hebrew University in Jerusalem. He also
holds an Israeli CPA license. Dr. Bachar received his MBA and Ph.D. in Finance from the University of
California (Berkeley).
I
srael Discount Bank is a leading financial group
in Israel. With nation-wide coverage and a
strong and growing domestic franchise, the Bank
provides a full spectrum of corporate and retail
financial products and services to its clients, both in
Israel and in key financial centers around the world.
In Israel, the Discount Group is comprised of
commercial banks and financial services companies,
active in credit cards, investment banking, portfolio
management and trustee services. Together with
Mercantile Discount Bank, the Group operates over 200
branches throughout Israel, servicing all of the retail
and corporate sectors.
Abroad, the bank operates through a network of
subsidiaries, branches and representative offices in
North America, Europe and Latin America, with a focus
>> 24
on commercial and private banking. Israel Discount
Bank New York (IDBNY) is the largest Israeli-owned
bank operating outside of Israel.
In terms of corporate, social and environmental
responsibility, Discount Bank is among the leading
Israeli corporates and is recognized among the top ten
companies by the Maala Index. In addition, Discount
Bank has been included in the FTSE4GOOD Index.
Discount Bank is a member of the Tel-Aviv Stock
Exchange (TASE:DSCT). Controlling Shareholders
constitute 25% with 75% of the shares held by the
Public. Research and coverage of the Bank’s stock
is offered by Barclays Capital; CITI; Clal Finance
Brokerage; Deutsche Bank; DS Invest; IBI; Leader
Capital Markets; Meitav Brokerage; Psagot; UBS.
>>>
ISRAEL DISCOUNT BANK - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: DSCT
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-25, Finance, TA-Banks, Maala SRI
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume....................8.3
(US $ Millions)
Shares outstanding................1,053,869,295
HISTORICAL PRICE
Security Price
)US $ Cents(
300
Market value (US $ Millions).................2,039
250
Last price .............................................$1.93
200
P/E ratio (12 months)..................................8.3
150
ROE (12 months).....................................8.1%
100
50
STOCK OWNERSHIP (June 2011)
2006
2007
2008
INCOME STATEMENT (US $ Millions)
Income from financing activities
before credit loss expenses
25.2%
74.8%
2009
Dec.2010
2010
2011
Q1 2010
Q1 2011
1,361
300
370
Operating profit before taxes
293
65
106
Net profit before attribution to
noncontrolling interests
224
44
86
Net profit attributable to shareholders
204
39
80
Earnings per share
0.21
0.04
0.07
52,357
50,409
52,846
BALANCE SHEET
Total assets
• Major shareholders (25.2%)
Bronfman Family (15.1%)
Rubin Schron (10.1%)
• Float (74.8%)
Credit to the public
33,436
30,788
33,516
Deposits from the public
38,887
37,675
39,095
Total equity
3,260
2,862
3,107
Equity attributable to shareholders
3,167
2,774
3,014
>> 25
>>> Mellanox
• Eyal Waldman • Chairman, President and CEO • Mellanox
Eyal Waldman is a co-founder of Mellanox, and has served as Mellanox's chief executive officer, president
and chairman of Mellanox's board of directors since March 1999. From March 1993 to February 1999,
Mr. Waldman served as vice president of engineering and was a cofounder of Galileo Technology Ltd., or
Galileo, a semiconductor company, which was acquired by Marvell Technology Group Ltd. in January 2001.
From August 1989 to March 1993, Mr. Waldman held a number of design and architecture related positions
at Intel Corporation, a manufacturer of computer, networking and communications products. Mr. Waldman
holds a Bachelor of Science in Electrical Engineering and a Master of Science in Electrical Engineering
from the Technion — Israel Institute of Technology.
M
ellanox Technologies (NASDAQ: MLNX, TASE:
MLNX) is a leading supplier of end-to-end
InfiniBand and Ethernet connectivity solutions
and services for servers and storage. Mellanox
products optimize data center performance and
deliver industry-leading bandwidth, scalability, power
conservation and cost-effectiveness while converging
multiple legacy network technologies into one futureproof architecture. The company offers innovative
solutions that address a wide range of markets
including HPC, enterprise, mega warehouse data
centers, cloud computing, Internet and Web 2.0.
Founded in 1999, Mellanox Technologies is
headquartered in Sunnyvale, California and
Yokneam, Israel.
>> 26
Mellanox’s end-to-end FDR 56Gb/s InfiniBand and
10/40GbE connectivity solutions, consisting of the
ConnectX®-3 line of I/O adapter products, cables
and a comprehensive SwitchX™ family of fixed and
modular switches, management and acceleration
software and cables, deliver industry-leading
performance, efficiency, and scalability for the best
return-on-investment for performance interconnects.
Mellanox’s end-to-end connectivity products and
advanced technology connect and accelerate a widearray of high-performance computing centers, Web
2.0, financial services, database, cloud computing
providers and enterprise customers.
>>>
MELLANOX TECHNOLOGIES - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: MLNX
Tel-Aviv Stock Exchange ("TASE"), NasdaqGS
INDICES (TASE)
TA-75, TA BlueTech-50, TA Technology, Maala SRI
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume (NASDAQ+TASE)
(US $ millions)...........................................7.5
Shares outstanding......................34,490,000
Market value (US $ millions).................1,008
Last price ............................................$29.24
P/E ratio (12 months)................................28.5
ROE (12 months)...................................12.0%
HISTORICAL PRICE
Security Price
)US $ Cents(
3,200
2800
2,400
2000
1,600
1200
800
400
2007
2008
2009
2010
2011
STOCK OWNERSHIP (June 2011)
INCOME STATEMENT* (US $ millions) Dec.2010
18.3%
81.7%
Total revenues
Q1 2010
Q1 2011
155
36
55
Operating income
38
11
9
Total net income
37
10
9
Net income attributable to shareholders
37
10
9
0.99
0.29
0.24
316
288
357
34
33
62
Total equity
282
255
295
Equity attributable to shareholders
282
255
295
Earnings per share
* Non-GAAP
•
•
BALANCE SHEET
Major
shareholders (18.3%)
Oracle Corp (9.9%)
Eyal Waldman (CEO) (4.7%)
Migdal Insurance (3.5%)
Float (81.7%)
Fidelity (12.7%)
Total assets
Total liabilities
>> 27
>>> Shufersal
• Ephraim Rosenhaus • President & C.E.O • Shufersal Ltd.
Ephraim Rosenhaus President & C.E.O of Shufersal Ltd. the leading food retail chain in Israel.
Mr. Rosenhaus joined Shufersal in 2003 as a deputy C.E.O and after a few weeks he was appointed as the
CEO of the company. Mr. Rosenhaus led the turnaround of Shufersal, implementing a new strategy.
In 2005 under Mr. Rosenhaus's management, Shufersal acquired Club Market, the number 3 food retail
chain in Israel and it was successfully merged into Shufersal.
Mr. Rosenhaus began his career as one of the founders of Super- Pharm the Israeli leading drug store chain.
From 1985 up to 1988 Mr. Rosenhaus served as an executive V.P of the largest Benetton licensee in the
U.S.A owned by the Wallis group.
From 1991 to 1998 Mr. Rosenhaus once again served as an Executive V.P of Commerce of Super-Pharm.
In 1998 Mr. Rosenhaus joined Partner Communications (Orange) as one of the first founders and served
as an Executive V.P of Sales & Marketing up to 2003.
Mr. Rosenhaus holds a B.A in Business Administration from the Polytechnic of Central London.
S
hufersal is Israel's largest retail chain. The
company operates 253 stores nationwide,
covering a total area of 546,000 square meters.
Shufersal operates four different types of retail
stores throughout Israel: neighborhood stores under
the Shufersal Sheli brand; discount stores under the
Shufersal Deal brand; Yesh stores, targeting large
families and the ultra-Orthodox; and convenience
stores in neighborhoods and city centers under the
Shufersal Express brand.
A Strategy of Leadership
Nationwide retail network - Shufersal Sheli is a
chain of 107 neighborhood stores providing everyday
customer shopping needs while maintaining
convenience, availability, freshness and service.
Shufersal Deal, a chain of discount stores oferring lowpriced products, numbers 74 branches.
Yesh is a chain of 54 competitive discount stores.
Shufersal Express is a small store brand with
13 branches.
Shufersal Yashir is a service that markets products
directly to the customer's home or office. Orders can
be placed online, by phone or fax.
>> 28
Shufersal brand - Shufersal puts great effort into
producing the company’s private label to provide
customers with a brand that meets high quality
standards, is competitively priced and is adapted to
Israeli consumer tastes. Shufersal brand includes
some 1,400 products.
Loyalty Club - Shufersal operates a leading loyalty club
with 1.4 million member households. Club members
enjoy cash coupons, accumulated bonuses, discounts
and special offers.
Shufersal Credit Card - Shufersal - together with Leumi
Card and Paz - launched the Shufersal credit card in
2006, which provides customers with an alternative
credit base as well as special offers and benefits.
Shufersal's strategic and competitive advantages
include an extensive logistics system that enables the
independent supply of products to company stores;
a nationwide Distribution Centers - Shufersal owns
a sophisticated logistics center in Rishon Lezion, in
addition to three distribution centers located throughout
Israel with total area of 43,000 square meters.
>>>
SHUFERSAL - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: SAE
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-75, Tel-Div, Maala SRI, Tel-Bond 20
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume....................1.5
(US $ millions)
Shares outstanding....................217,081,322
Market value (US $ millions).................1,258
Last price ..............................................$5.79
HISTORICAL PRICE
Security Price
)US $ Cents(
600
500
400
P/E ratio (12 months)................................13.6
300
ROE (12 months)...................................26.3%
200
2006
2007
2008
2009
2010
2011
Q1 2010
Q1 2011
STOCK OWNERSHIP (June 2011)
INCOME STATEMENT (US $ millions)
Total revenues
Dec.2010
3,136
745
802
Operating income
157
31
34
Total net income
94
19
18
Net income attributable to shareholders
94
19
18
0.45
0.09
0.08
Total assets
1,905
1,729
1,966
• Major shareholders (69.2%)
Total liabilities
1,546
1,344
1,613
Total equity
359
385
353
• Float (30.8%)
Equity attributable to shareholders
359
385
352
30.8%
69.2%
Earnings per share
BALANCE SHEET
Discount Investments Corporation (46.1)%
Isralom Properties (18.6%)
>> 29
>>> Strauss Group
• Ofra Strauss • Chairperson of the Board of Directors • Strauss Group
Ofra Strauss is one of Israel’s business leaders, serving as Chairperson of the Board of Strauss Group
since 2001. Prior to that, Ms. Strauss served as Vice-Chairperson of the board. She also serves as a
director in several of the company's partnerships, including Strauss Diaries Ltd., Strauss Ice Cream
Ltd., Yotvata Diaries, Santa Clara and Elite Foods Ltd. Since 2006, Ms. Strauss is a Supervisory Board
member of Royal Numico N.V. Before joining Strauss-Elite, Ms Strauss spent three years working in the
International Marketing Services department of Estee Lauder in New York.
Ms. Strauss hold an LLB degree from Tel-Aviv University, and she is a graduate of the Executive Program
of Harvard Business School.
For decades Ms. Strauss has promoted social issues, focusing in recent years on Corporate Governance,
Diversity and Inclusion, highlighting women's empowerment.
Ms Strauss is serving as Chairperson of Maala, a non-profit membership organization founded to promote
corporate citizenship and social responsibility in Israel's business arena. Founder and President of
Catalyst Israel, and is also the President of Jasmine, association of businesswomen in Israel, and is a
member of the Jewish Agency Board of Governors and a member of the Jewish Agency Executive. Ms
Strauss also serve as Chairperson, Israel Fundraising Campaign of WIZO Israel.
T
he last few years have been an exciting time of
growth and change for the Strauss Group. During
this period Strauss has become the second largest
food and beverage company in Israel and the fifth
largest coffee company in the world, holding leading
positions in Israel, CEE and Brazil.
From a wholly Israeli company we have evolved into
an international corporation focusing on three core
businesses with unique concepts that are developing
innovative, growth-intensive global businesses. From
a private, family-owned enterprise, we have become a
publicly listed group with a diverse business structure that
is characterized by rapid growth - organic as well as from
acquisitions, mergers and a variety of partnerships. As a
result, 2010 ended with NIS 6.9 billion in revenues, 46%
from international activities that took place in Brazil, North
America, CEE, UK and Australia among others. Our EBIT
for the year reached NIS 601 million, 8.8% of revenues and
our net income reached NIS 258 million, 3.8% of revenues.
Strauss Israel, serving as the Group's home base,
operates under two focused divisions, Health & Wellness
>> 30
and Fun & Indulgence, concentrated on meeting evolving
consumer trends through innovation and sustainability.
These divisions, serve as the core foundations for longterm growth and expansion, locally, as well as globally.
Over the past few years our multi-local company Strauss
Coffee, strengthened its place as a leading coffee company
and has continued to expand in emerging markets such as
Central and Eastern Europe and Brazil.
Strauss North America primarily incorporates the
activities of the rapidly growing Sabra Dipping Company,
jointly managed (50:50) with PepsiCo Frito Lay, as well as
the activity of Max Brenner's innovative Chocolate Bars.
Strauss Water, which aims to be a key Group growth
driver in the next few years, has defined a vision of
becoming a leading provider of drinking water solutions.
What began three years ago as a start-up venture, in the
daring spirit that so aptly characterizes Strauss, is now
proudly called Strauss Water with activities in Israel, UK
and China.
Strauss operates 19 manufacturing sites in 20 countries
and employs 14,000 people around the world.
>>>
STRAUSS GROUP - Financial Data
STOCK EXCHANGE
TICKER SYMBOL: STRS
Tel-Aviv Stock Exchange ("TASE")
INDICES (TASE)
TA-25, Tel-Div, Maala SRI, Tel-Bond 40
FUNDAMENTALS (as of June 15, 2011)
Average daily trading volume...................2.3
(US $ millions)
Shares outstanding...................106,214,371
Market value (US $ millions)................1,608
HISTORICAL PRICE
Security Price
)US $ Cents(
1,800
1,600
1,400
Last price ...........................................$15.14
1,200
P/E ratio (12 months)...............................30.6
1,000
ROE (12 months)..................................10.5%
800
600
STOCK OWNERSHIP (June 2011)
2006
2007
2008
INCOME STATEMENT (US $ millions)
Total revenues
31.6%
68.4%
2009
Dec.2010
2010
2011
Q1 2010
Q1 2011
1,932
457
509
Operating income
152
46
38
Total net income
85
29
21
Net income attributable to shareholders
59
23
16
0.56
0.21
0.15
1,763
1,605
1,872
Total liabilities
997
883
1,111
Total equity
766
722
761
Equity attributable to shareholders
519
480
502
Earnings per share
BALANCE SHEET
Total assets
• Major shareholders (68.4%)
Strauss Group Holdings 68.4%
• Float (31.6%)
>> 31
>>> Tase Members -
CONTACTS FOR INTERNATIONAL INVESTORS
Banks
>> 32
contact Person
Tel
Fax
E-mail
Web Site
Bank Hapoalim
Ronit Meiri Harel
972-3-5674180
972-3-5674862
[email protected]
www.bankhapoalim.co.il
Bank Leumi Le-Israel
Shoshie Haimovici
972-3-5149106
972-3-5148548
[email protected]
www.leumi.co.il
Bank Massad
Liat Ben-Ari
972-3-5641343
972-3-5641441
[email protected]
www.bankmassad.co.il
Bank of Israel
Mimi Regev
972-2-6552575
972-2-6669575
[email protected]
www.bankisrael.gov.il
Bank of Jerusalem
Tammy Sand
972-768096400 972-768096377
[email protected]
www.bankjerusalem.co.il
Bank Otsar Ha-Hayal
Orit Horesh
972-3-7556261
972-3-7964533
[email protected]
www.bankotsar.co.il
Citibank,N.A.
David Levy
972-3-6842732
972-3-6842702
[email protected]
www.citigroup.com
HSBC Bank PLC
Raz Lerman
972-3-7101190
972-3-7101130
[email protected]
www.hsbc.com
Israel Discount Bank
Barry Simon
972-3-5146593
972-3-5145150
[email protected]
www.discountbank.co.il/ir
Mercantile Discount Bank
Joseph Kazum
972-3-5647720
972-3-5647721
[email protected]
www.mercantile.co.il
Mizrahi Tefahot Bank
Ronit Baron
972-3-7559722
972-3-7559150
[email protected]
www.mizrahi-tefahot.co.il
The First International
Bank of Israel
Dafna Zucker
972-3-5196224
972-3-5100253
[email protected]
www.fibi.co.il
Ubank
Michal Goren Miller
972-3-5645631
972-3-5645234
[email protected]
www.u-bank.net
Union Bank of Israel
Dr.Akiva Sternberg
972-3-5191688
972-3-5191849
[email protected]
www.unionbank.co.il
Brokerage Firms
contact Person
Tel
Fax
E-mail
Analyst Exchange & Trading
Services
Rafi Kessel
972-3-7147161
972-3-7147142
[email protected]
www.analyst.co.il
Clal Finance Batucha
Investment Management
Ronen Waisserberg
972-3-7616408
972-3-6276399
[email protected]
www.cfb.co.il
Deutche Securities Israel
Hadar Oshrat
972-3-7102036
972-3-7102045
[email protected]
www.db.com
DS Securities and
Investments
Uriel Goren
972-73-7012692
972-73-7012685 [email protected]
www.ds-invest.co.il
Excellence Nessuah
Brokerage Services
Daniel Rapoport
972-3-7532072
972-3-7532040
[email protected]
www.xnes.co.il
Meitav Brokerage Services
(Gaon Trade) Ltd.
Osher Tubul
972-3-7778277
972-3-6124830
[email protected]
www.meitav.co.il
Harel Finance Trade &
Securities
Erez astrachan (asif)
972-3-7546058
972-3-7546318
[email protected]
www.harel-finance.co.il
Israel Brokerage and
Investment I.B.I
Lital Kost
972-3-5193452
972-3-5193456
[email protected]
www.ibi.co.il
Migdal Stock Exchange
Services (N.E.)
Yam Rubinstein
972-3-5194032
972-3-5167410
[email protected]
www.msh.co.il
Poalim Sahar
Ehud Chityat
972-3-7104503
972-3-7104505
[email protected]
www.sahar.co.il
Psagot Securities
Shay Yaron
972-3-7968806
972-3-7968889
[email protected]
www.psagot.co.il
UBS Securities Israel
Amir Lev
972-9-9600114
972-9-9600124
[email protected]
www.ubs.com
contact Person
Tel
Fax
E-mail
Haim Israel
972-3-6072007
972-3-6072052
[email protected]
Remote Member
Merrill Lynch International
Web Site
Web Site
www.ml.com
>> 33
>>> Conference Agenda
>> 34
08:15 - 09:00
Registration and Coffee
09:00 - 09:30
Ester Levanon, CEO
Tel-Aviv Stock Exchange
09:30 - 10:15
Keynote Speaker:
Prof. Stanley Fischer, Governor
Bank of Israel
10:15 - 10:35
Galia Maor, President & CEO
Bank Leumi
10:35 - 10:55
Dr. Joseph (Yossi) Bachar, Chairman of the BOD
Israel Discount Bank
10:55 - 11:05
Fireside Discussion
11:05 - 11:30
Asaf Bartfeld, President & CEO
Delek Group
11:30 - 11:50
Danna J. Azrieli, Vice Chairman
Azrieli Group
11:50 - 12:10
Roni Soffer, President
Gazit Globe
12:10 - 12:20
Fireside Discussion
12:20 - 12:45
Eyal Waldman, CEO
Mellanox Technologies
12:45 - 13:05
Ephraim Rosenhaus, President & CEO
Shufersal
13:05 - 13:25
Ofra Strauss, Chairperson of the BOD
Strauss Group
13:25 - 13:35
Fireside Discussion
13:35 Lunch
Conference IR - CCG Investor Relations www.ccgisrael.com
•••
TASE Marketing and Communication Unit Tel: +972 3 567-7405/6
•••
Photographs by: Israel Malovani, Awmi Husry, Marc Neiman and Nasdaq
•••
Graphic Design: Studio Merhav
w w w. t a s e . c o . i l
w w w. t a s e . co . i l
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has endorsed or sponsored any of these securities. Nothing contained herein should be construed as investment advice, either on behalf of particular securities or
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