Shikun & Binui Announces Financial Results For the Third Quarter & First Nine Months of 2018

AIRPORT CITY, Israel, Nov. 26, 2018 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today reported its financial results for the third quarter and first nine months of 2018.

Financial highlights for the first nine months of 2018:

    --  Revenues totaled ~NIS 4.2 billion, a decrease of 14% compared with the
        first nine months of 2017. The decrease was primarily due to the decline
        in Solel Boneh's execution in Israel during the period as compared to
        the same period last year, mainly in the Ashalim, Railroad Tracks and
        Polynam projects. In addition, there was a decline in the Company's
        international contracting activities (apart from in the United States),
        due to a slowdown of activities in Nigeria and Columbia and the
        completion of projects in Ghana and Togo.
    --  Gross margin for the period was ~13% compared with 11% during the same
        period in 2017. Gross profit for the period totaled ~NIS 555 million,
        compared with ~NIS 543 million for the first nine months of 2017.
    --  Net profit for the first nine months of 2018 totaled ~NIS 217 million.
        This is compared with ~NIS 148 million for the same period last year.
        The increase primarily reflected a ~NIS 331 million pre-tax capital gain
        generated from the sale of the Portfolio (45% of the Company's holdings
        in Carmeltun and 40% of its holdings in North Roads). This was offset
        partially by significant one-time expenses of SBI during the period,
        which totaled 37 million dollars, or 131 million shekels.
    --  Cash flow from operations, excluding investments in land and rights
        offerings, totaled ~NIS (698) million. Cash flow from operations
        including these investments totaled ~NIS (1,179) million.

Income statement highlights:

1. CONSTRUCTION

Solel Boneh

    --  Continued strong execution and expansion of the Company's construction
        offerings: revenues for the first nine months of 2018 were ~NIS 2.2
        billion.
    --  Primary "Mega Projects" in execution during the first nine months of
        2018: Gilboa Pumped Storage, Ashalim Thermo Solar power plant, the Tel
        Aviv Light Rail (the Red Line Western Section), Tze'elim, the Southern
        Barrier, and others.
    --  Acquisition of Menorah Izu Aharon Group: In February 2018, Solel Boneh
        completed the acquisition of the Menorah Izu Aharon Group, a
        privately-held company that engages in the execution, construction and
        maintenance of complex electrical systems for lighting, railroad
        crossings, traffic control and other applications. The company employs
        235 workers. The acquisition is in accordance with Shikun & Binui's
        strategy to expand its construction offerings and will be complementary
        and synergistic to its other activities.

International Building and Infrastructure Contracting Activities (excluding the US)

    --  Total revenues for the first nine months of 2018: NIS 954 million.
    --  In February 2018, the company signed an agreement to build a new airport
        in Uganda for ~USD 299 million.
    --  In July 2018, the company received notice of the approval of an
        expansion for the Shagamu-Ibadan Road project in Nigeria for ~USD 220
        million (NIS 803 million).
    --  Segment 1 of the Colombia Toll Roads Project is now in the process of
        delivery; completion of Segments 2 and 3 is expected to be delayed and
        negotiations are currently underway to extend the work period. Regarding
        Segments 4 and 5, a force majeure agreement was signed with the
        customer, which may result in significant changes to the scope of the
        project due to the discovery of water springs along the original route.
        As a result of the delays, the project's financers have decided to stop
        the continued further draw-down of funds until a new plan has been
        approved to move forward the construction work. In 2017, a provision of
        ~USD 5 million was taken in respect of the project's expected loss, and
        in the first nine months of 2018, a further ~USD 12 million provision
        was included.
    --  During the second quarter of 2018, the Company decided to take action to
        examine its indirect holdings in SBI International Holdings AG,
        including the possibility of a transaction in shares and/or sale of
        activities and/or assets; and to seek appropriate proposals. On November
        20, 2018, the Company's Board of Directors decided to discontinue this
        examination of its indirect holdings in SBI International Holdings.
    --  The company decided to translate its financial results based on the
        NAFEX exchange rate beginning in the second quarter of 2018. This is in
        light of Nigeria's announcement that it will cease publishing the NIFEX
        exchange rate beginning in January 2019. In addition, the gap between
        the NIFEX and NAFEX exchange rates has been narrowing, and there has
        been a reduction in the flow of foreign currency into the Nigerian
        Central Bank. As a result, the Company has recorded a USD 5 million loss
        related to fluctuations in exchange rates.

US Building and Infrastructure Contracting Activities:

    --  Total revenues for the first nine months of 2018: ~NIS 364 million from
        the construction of the SH-288 toll road project in Texas.

Development of the Backlog* (in NIS millions)

*The backlog as of September 30, 2018 does not include additional construction projects which total ~NIS 2.2 billion that the Company won in Israel and in international markets, up to or after the reporting date. These include ~USD 120 million in roads projects in Ethiopia, ~USD 120 million in roads projects in Guatemala and the construction of a NIS 750 million (the Company's share of which is 50%) waste sorting and recycling center in Rishon Letzion, a project whose initiation is contingent upon the completion of a financial closing. In addition, the backlog does not include projects completed during the reporting period or after the report date. The decline in the backlog as compared with its level at December 31, 2017, was due partially from the effect of the early adoption of the IFRS 15 reporting standard.

RESIDENTIAL REAL ESTATE DEVELOPMENT

Apartment Sales

    --  During the first nine months of 2018, the Company sold 953 apartments
        (100% share) totaling ~NIS 985 million, including 297 units in Israel
        and 656 units in Europe.

Following is additional data regarding the Company's sale of apartments (signed contracts) during the first nine months of 2018:


                                                         
          Apartment Units Under  
        Consolidated       
          Companies
                                                             Company Management          Companies               Under Joint
                                                           Including Partner Share                                 Control



                                                  Israel

    ---


       Sales                                                                      535                     447


       
              (NIS millions)

    ---


       Number of apartment sale contracts signed                                  297                     247

    ---


       Average price of apartments sold                                         1,801                   1,811

       
              (NIS thousands)

    ---

                                                  Europe

    ---


       Sales                                                                      450                     303                   45


       
              (NIS millions)

    ---


       Number of apartment sale contracts signed                                  656                     486                   49

    ---


       Average price of apartments sold                                           685                     623                  916

       
              (NIS thousands)

    ---

Data regarding the Company's delivery of apartments to customers during the first nine months of 2018:


                           
         Consolidated     
          Projects Under
                             Projects               Joint Control



                    Europe

    ---

        Revenues
         from
         apartments
         delivered
         (NIS
         millions)                            102                        26

    ---

        Number of
         units
         delivered                            227                        37

    ---

        Average
         price of
         apartments
         delivered
         (NIS
         thousands)                           448                       710

    ---

    --  In Europe, the Company continued to launch projects and to acquire land
        for future development:
        --  Launch of the Zahálka project in Prague, Czech Republic: 790 units
            including 240 units in Phase 1
        --  Launch of the Wellport project in Belgrade, Serbia: 570 units
            including 95 units in Phase 1
        --  Purchase of partner's share in the City Point project in Romania for
            the development of ~1,500 units (construction expected to begin in
            2019)
        --  Purchase of land in the Karlin quarter in the Czech Republic for the
            development of ~220 units (construction expected to begin in 2020)
    --  In Israel, the Company began planning for the construction of 657
        apartments and commercial space in Or Yam in Or Akiva. In addition, it
        initiated marketing efforts for new projects in Givat Shmuel, Ashkelon,
        Kfar Yona and Harish, and building began for projects in Rishon Letzion
        and Givat Shmuel.
    --  Implementation of the IFRS Standard: According to the IFRS Standard, the
        Company reports its revenues from apartment sales in Israel over time
        according to the progress made in the each project's building and sales
        processes. The policy for revenue recognition from apartment sales in
        other countries remains unchanged with respect to the previous policy.

3. PROJECTS & IGAs (INCOME GENERATING ASSETS)

The Company continues to implement the strategy of increasing value and freeing up cash flow for new projects:

    --  The company has completed the sale of the Portfolio (45% of its rights
        in the Carmel Tunnels project and 40% of its rights in the Northern
        Roads project). The sale generated a profit of NIS 272 million and cash
        flow of ~NIS 580 million.
    --  The company has entered into a process for selling its rights in the
        Generi 2 Government Campus project. If and when the sale is completed,
        the company expects to recognize ~NIS 25-30 million in profit and ~NIS
        70 million in cash flow. The project will be completed in January 2019
        at the earliest.
    --  The company has entered into a process for selling its rights in an
        IKEA. If and when the sale is completed, the company expects to
        recognize ~NIS 83-88 million in profit. Completion of the project is
        contingent upon approval by regulatory authorities.

The Company announced the win of a number of new significant projects:

    --  Won a tender for an urban waste sorting and treatment plant: In April
        2018, Israel's Tendering Committee awarded Shikun & Binui and G.E.S. (as
        equal partners) a project to plan, finance, construct and operate an
        urban waste sorting and treatment plant. The project costs during the
        construction phase are projected to total ~NIS 750 million. Solel Boneh
        holds 50% of the rights of the Construction Contractor and will build
        the project together with G.E.S. Launch of construction is contingent
        upon the completion of Financial Closing. The length of the concession
        period is 29.5 years.
    --  Won a Concessions tender for a ICT center campus in Be'er Sheva: In June
        2018, the Tendering Committee of the State of Israel announced, with
        regard to its tender to plan, finance, construct, operate and maintain a
        170,000 m(2) ICT (information and communications technology) campus in
        Be'er Sheva under a 25-year framework, that it had selected a project
        company established in equal partnership by the Company and Africa
        Israel Properties Ltd. as the preferred candidate as part of the defined
        process in the Concessions agreement. The final approval is conditional
        upon fulfillment of milestones and conditions set out in the tender.

Agreements between the shareholders of the ADO Group:

    --  On September 20, 2017, a shareholders' agreement was signed between the
        Company and Dune International S.A.R. (hereinafter: "Dune") and funds
        managed by companies related to Apollo Global Management LLC
        (hereinafter: "Apollo"), in connection with holdings of the parties in
        the A.D.O. Group Ltd. (hereinafter: "A.D.O."). Since the preconditions
        for the entry into force of this agreement were not complied with, the
        agreement was canceled.
    --  On September 20, 2018, the Company and Dune signed a letter of consent
        in connection regarding how the parties would vote on the appointment of
        the directors at the upcoming annual general meeting of ADO. On the same
        day, another letter of consent was signed between the Company, Dune and
        Apollo, which established a right of first refusal mechanism in the
        event of the transfer of ADO shares for a period of 20 months from the
        date of signing the letter.

Sale of Shikun & Binui shares: On August 6, 2018, the transaction for the sale of all the shares of Shikun & Binui Ltd. held by Arison Investments Ltd. to Capital Foresight Israel Investments Company LLC, under the control of Mr. Naty Saidoff, was completed. After completion of the transaction, the control of the Company was finally transferred to Capital Foresight Israel Investments Company LLC, which holds approx. 46.91% of the Company's issued and paid up capital stock and approx. 47.68% of the voting rights in the Company. Capital Foresight Israel Investments Company LLC is held (100%) by the limited partnership The Capital Foresight Limited Partnership, in which the general partner is Saidoff Foresight, LP. The general partner in the partnership is Naty Saidoff, LLC, which is 100% held by Naty Saidoff.

Investors Conference Call

Shikun & Binui will host a conference call on November 27, 2018 starting at 10am Eastern Time to discuss the financial results. Management will also be available to answer investor's questions, after presenting the results.

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls a few minutes before the conference call commences. If you are unable to connect using the toll-free numbers, try the international dial-in number.



     US:            1-888-668-9141



     UK:            0-800-917-5108



     Israel:        03-918-0609



     International: +972-3-918-0609

At: 10am Eastern Time, 7am Pacific Time, 3pm UK Time, 5pm Israel Time

For those unable to participate, the teleconference will be available for replay on the company's website at http://en.shikunbinui.co.il/ beginning 24 hours after the call.

About the Shikun & Binui Group

The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel (excluding the United States); 2) US infrastructure and construction contracting; 3) infrastructure and construction contracting within Israel; 4) real estate development within Israel; 5) real estate development outside of Israel; 6) renewable energy; and 7) concessions. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.

Safe Harbor Statement

This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter - "the Company") full report. The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated. This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968). The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.

It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments. Forward-looking information is uncertain and for the most part, is not under the Company's control. The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations. The Company's future results and achievements could differ significantly from those presented in this presentation. The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement. This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers. An investment in securities in general, and in the Company in particular, carries risk. One must take into account that past data do not necessarily indicate future performance.



       Condensed Consolidated Interim Financial Statements





       
                Condensed Consolidated Interim Statement of Financial Position as at

    ---



                                                                                          
      
             September 30 
        
        September 30  
       
      December 31


                                                                                                               2018                    2017                 2017



                                                                                                 (Unaudited)          
         
        (Audited)



                                                                                            NIS
              thousands     NIS
         thousands    NIS
       thousands




       
                Assets



       Cash and cash equivalents                                                                         2,112,271               1,716,625            2,029,574



       Bank deposits                                                                                       579,587                 503,706              657,668



       Short-term loans and investments                                                                    103,256                  73,513               63,050



       Short-term loans to investee companies                                                                4,451                  11,969               31,854



       Trade receivables - accrued income                                                                2,816,057               2,680,467            2,454,935



       Inventory of buildings held for sale                                                              1,701,217               1,254,629            1,395,986



       Receivables and debit balances                                                                      532,695                 481,375              498,838



       Other investments, including derivatives                                                            262,854                 146,088              241,641



       Current tax assets                                                                                   26,821                  80,123               19,692



       Inventory                                                                                           216,073                 186,572              176,145



       Assets classified as held for sale                                                                  743,245                 116,776              105,352




       
                Total current assets                                                                 9,098,527               7,251,843            7,674,735






       Receivables and contract assets



        in respect of concession arrangements                                                              724,548                 921,586              923,267



       Non-current inventory of land (freehold)                                                          1,175,904                 815,904              789,699



       Non-current inventory of land (leasehold)                                                           425,077                 375,460              426,609



       Investment property, net                                                                            811,071                 976,083              842,943



       Land rights                                                                                          13,422                  13,129               13,179



       Receivables, loans and deposits                                                                     392,189                 526,622              522,795



       Investments in equity-accounted investees                                                           588,147                 645,224              598,512



       Loans to investee companies                                                                         882,921                 565,362              612,054



       Deferred tax assets                                                                                 171,803                 138,195              162,932



       Property, plant and equipment, net                                                                1,040,838                 909,429              875,593



       Intangible assets, net                                                                              289,860                 198,769              150,238




       
                Total non-current assets                                                             6,515,780               6,085,763            5,917,821






       
                Total assets                                                                        15,614,307              13,337,606           13,592,556



       Condensed Consolidated Interim Financial Statements





       
                Condensed Consolidated Interim Statement of Financial Position as at

    ---



                                                                                          
      
             September 30 
        
        September 30  
       
      December 31


                                                                                                               2018                    2017                 2017



                                                                                                 (Unaudited)          
         
        (Audited)



                                                                                            NIS
              thousands     NIS
         thousands    NIS
       thousands




       
                Liabilities



       Short-term credit from banks and others                                                           1,763,325               1,187,957            1,036,026



       Subcontractors and trade payables                                                                 1,384,132               1,354,735            1,460,075



       Short-term employee benefits                                                                        138,744                 128,344              136,860



       Payables and credit balances including derivatives                                                  573,799                 565,563              616,135



       Current tax liabilities                                                                              78,627                  92,965              105,653



       Provisions                                                                                          212,628                 254,424              246,019



       Payables - customer work orders                                                                   1,149,628               1,479,057            1,376,856



       Advances received from customers                                                                    463,844                 143,151              336,685



       Dividend payable                                                                                                             7,764



       Liabilities classified as held for sale                                                             356,871




       
                Total current liabilities                                                            6,121,598               5,213,960            5,314,309






       Liabilities to banks and others                                                                   3,037,014               2,433,375            2,477,801



       Debentures                                                                                        3,671,036               3,394,548            3,402,211



       Employee benefits                                                                                    47,474                  49,788               49,843



       Deferred tax liabilities                                                                             77,310                 143,821              105,719



       Provisions                                                                                          259,812                 106,522              102,795



       Excess of accumulated losses over cost of investment



        and deferred credit balance in investee companies                                                   47,814                  26,653               48,130




       
                Total non-current liabilities                                                        7,140,460               6,154,707            6,186,499






       
                Total liabilities                                                                   13,262,058              11,368,667           11,500,808






       
                Equity



       Total equity attributable to owners



        of the Company                                                                                   2,064,796               1,762,111            1,849,025



       Non-controlling interests                                                                           287,453                 206,828              242,723




       
                Total equity                                                                         2,352,249               1,968,939            2,091,748










       
                Total liabilities and equity                                                        15,614,307              13,337,606           13,592,556



       
                Condensed Consolidated Interim Statement of Income

    ---



                                                                                                                                                                                                         
         
         For the


                                                                            For the nine-month period ended     For the three-month period ended     
        
        year ended


                                                                         
            
                September 30  
             
                September 30   
        
        September 30    
       
       September 30      
         
         December 31


                                                                                                       2018                                  2017                      2018                     2017                          2017



                                                                          
            
                (Unaudited)   
             
                (Unaudited)    
        
        (Unaudited)     
       
       (Unaudited)        
         
         (Audited)

                                                                                                                                                                                                                           ---

                                                                        
            
                NIS thousands 
             
                NIS thousands  
        
        NIS thousands   
       
       NIS thousands    
         
         NIS thousands

                                                                                                                                                                                                                           ---


       Revenues from work



        performed and sales                                                                      4,201,757                             4,916,022                 1,463,357                1,474,896                     6,437,307



       Cost of work performed



        and sales                                                                              (3,646,908)                          (4,372,751)              (1,233,275)             (1,308,345)                  (5,586,065)






       
                Gross profit                                                                   554,849                               543,271                   230,082                  166,551                       851,242





       Gain (loss) on sale of



        investment property                                                                         23,966                                   640                   (2,253)                                                3,217



       Selling and marketing expenses                                                             (28,975)                             (28,599)                 (10,240)                 (9,311)                     (40,049)



       Administrative and general



        expenses                                                                                 (301,705)                            (277,119)                 (96,665)                (90,382)                    (380,824)



       Share of profits



        of equity accounted



        investees (net of tax)                                                                      22,574                                20,440                     3,429                    3,809                        59,816



       Other operating income                                                                      359,265                                99,864                    17,661                   15,731                       219,622



       Other operating expenses                                                                  (105,340)                             (41,629)                 (44,892)                 (7,906)                    (130,028)






       
                Operating profit                                                               524,634                               316,868                    97,122                   78,492                       582,996






       Financing income                                                                            203,019                               134,968                    56,433                   13,659                       199,436



       Financing expenses                                                                        (407,598)                            (299,406)                (131,000)                (60,849)                    (422,471)






       
                Net financing expenses                                                       (204,579)                            (164,438)                 (74,567)                (47,190)                    (223,035)






       
                Profit before taxes



       
                 on income                                                                     320,055                               152,430                    22,555                   31,302                       359,961



       Taxes on income                                                                           (103,504)                              (4,033)                  (8,738)                  28,067                      (61,655)






       
                Profit for the period                                                          216,551                               148,397                    13,817                   59,369                       298,306






       
                Attributable to:



       Owners of the Company                                                                       184,733                               116,102                   (1,554)                  51,679                       230,927



       Non-controlling interests                                                                    31,818                                32,295                    15,371                    7,690                        67,379





                                                                                                    216,551                               148,397                    13,817                   59,369                       298,306




       
                Basic earnings (loss) per



       
                 share (in NIS)                                                                   0.46                                  0.29                   (0.004)                    0.13                          0.58






       
                Diluted earnings (loss) per



       
                 share (in NIS)                                                                   0.46                                  0.29                   (0.004)                    0.13                          0.57



     Consolidated Financial Statements





     
                Operating Segments




                                                   
           
              For the nine month period ended September 30, 2018 (unaudited)



                                                                      
              
                Infrastructures


                                                                                  
              
                and


                                        
         
           Infrastructures      
              
                construction     
              
               Infrastructures


                                               
         
                and   
              
                (international)                 
             
                and   
       
       Real estate    
        
       Real estate


                                          
          
           construction        
              
                (excluding        
              
               construction   
       
       development    
        
       development                             Renewable


                                            
          
             (Israel)              
              
                USA)               
             
                (USA)     
       
        (Israel)      (
       international
                                                                                                                                                                                                       )    
     
     Concessions      
     
        energy       Other    
       
     Adjustments   
         
     Consolidated

                                                                                                                                                                                                                                                                                                   ---

                                                                                                              
              
               NIS thousands

                                                                                                                               ---


     Total external revenues                               2,041,856                                    953,918                                     363,869                765,606                  178,667              33,167             183,227       31,815             (350,368)              4,201,757



     Inter-segment revenues                                  240,868                                                                                                          57                                                                                       (240,925)                      -




     Total revenues                                        2,282,724                                    953,918                                     363,869                765,663                  178,667              33,167             183,227       31,815             (591,293)              4,201,757






     Segment profit (loss) before



      income tax                                              76,295                                  (110,986)                                     24,085                173,878                  (3,844)            372,557             (1,807)    (24,938)            (185,185)                320,055





                                                   
           
              For the nine month period ended September 30, 2017 (unaudited)



                                                                      
              
                Infrastructures


                                                                                  
              
                and


                                        
         
           Infrastructures      
              
                construction     
              
               Infrastructures


                                               
         
                and   
              
                (international)                 
             
                and   
       
       Real estate    
        
       Real estate


                                          
          
           construction        
              
                (excluding        
              
               construction   
       
       development    
        
       development                             Renewable


                                            
          
             (Israel)              
              
                USA)               
             
                (USA)     
       
        (Israel)      (
       international
                                                                                                                                                                                                       )    
     
     Concessions      
     
        energy       Other    
       
     Adjustments   
         
     Consolidated

                                                                                                                                                                                                                                                                                                   ---

                                                                                                              
              
               NIS thousands

                                                                                                                               ---


     Total external revenues                               2,539,870                                  1,147,218                                     235,081                952,856                  181,494             135,530              29,045       30,202             (335,274)              4,916,022



     Inter-segment revenues                                  229,394                                                                                                          57                                                                                       (229,451)                      -




     Total revenues                                        2,769,264                                  1,147,218                                     235,081                952,913                  181,494             135,530              29,045       30,202             (564,725)              4,916,022






     Segment profit (loss) before



      income tax                                              79,645                                     59,791                                      30,982                108,036                    (726)            107,864             (4,766)    (63,208)            (165,188)                152,430



     Consolidated Financial Statements





     
                Operating Segments




                                                   
           
               For the three month period ended September 30, 2018 (unaudited)



                                                                        
              
                Infrastructures


                                                                                    
              
                and


                                        
         
            Infrastructures       
              
                construction     
              
               Infrastructures


                                               
          
                and    
              
                (international)                 
             
                and   
       
       Real estate    
        
       Real estate


                                          
          
            construction         
              
                (excluding        
              
               construction   
       
       development    
        
       development                             Renewable


                                            
           
             (Israel)               
              
                USA)               
             
                (USA)     
       
        (Israel)      (
       international
                                                                                                                                                                                                         )    
     
     Concessions      
     
        energy       Other    
       
     Adjustments   
         
     Consolidated

                                                                                                                                                                                                                                                                                                     ---

                                                                                                                
              
               NIS thousands

                                                                                                                                 ---


     Total external revenues                                  612,145                                     310,398                                     122,064                289,182                  103,851              10,831              94,602       11,113              (90,829)              1,463,357



     Inter-segment revenues                                   111,084                                                                                                           19                                                                                       (111,103)                      -




     Total revenues                                           723,229                                     310,398                                     122,064                289,201                  103,851              10,831              94,602       11,113             (201,932)              1,463,357






     Segment profit (loss) before



      income tax                                               23,602                                    (54,013)                                        258                 72,296                   14,600              25,635               7,940      (8,265)             (59,498)                 22,555





                                                   
           
               For the three month period ended September 30, 2017 (unaudited)



                                                                        
              
                Infrastructures


                                                                                    
              
                and


                                        
         
            Infrastructures       
              
                construction     
              
               Infrastructures


                                               
          
                and    
              
                (international)                 
             
                and   
       
       Real estate    
        
       Real estate


                                          
          
            construction         
              
                (excluding        
              
               construction   
       
       development    
        
       development                             Renewable


                                            
           
             (Israel)               
              
                USA)               
             
                (USA)     
       
        (Israel)      (
       international
                                                                                                                                                                                                         )    
     
     Concessions      
     
        energy       Other    
       
     Adjustments   
         
     Consolidated

                                                                                                                                                                                                                                                                                                     ---

                                                                                                                
              
               NIS thousands

                                                                                                                                 ---


     Total external revenues                                  810,982                                     321,035                                      82,123                263,764                   75,300              29,881              10,208        6,241             (124,638)              1,474,896



     Inter-segment revenues                                    70,839                                                                                                           19                                                                                        (70,858)                      -



     Total revenues                                           881,821                                     321,035                                      82,123                263,783                   75,300              29,881              10,208        6,241             (195,496)              1,474,896






     Segment profit (loss) before



      income tax                                               29,337                                       6,325                                      10,944                 25,468                    3,525              29,655             (1,476)    (12,359)             (60,117)                 31,302



     Consolidated Financial Statements





     
                Operating Segments




                                                        
              
             For the year ended December 31, 2017 (audited)



                                                                      
             
                Infrastructures


                                                                                 
              
                and


                                        
         
           Infrastructures     
              
                construction     
             
              Infrastructures


                                               
         
                and   
             
                (international)                
            
                and   
       
       Real estate    
        
       Real estate


                                          
          
           construction       
              
                (excluding        
             
              construction   
       
       development    
        
       development                             Renewable


                                            
          
             (Israel)             
              
                USA)              
            
                (USA)     
       
        (Israel)      (
       international
                                                                                                                                                                                                    )    
     
     Concessions      
     
        energy       Other    
       
     Adjustments   
         
     Consolidated

                                                                                                                                                                                                                                                                                                ---

                                                                                                             
              
             NIS thousands

                                                                                                                             ---


     Total external revenues                               3,229,094                                 1,508,804                                   345,405              1,382,599                  247,775             145,359              36,689       37,939             (496,357)              6,437,307



     Inter-segment revenues                                  291,770                                                                                                       76                                                                                       (291,846)                      -






     Total revenues                                        3,520,864                                 1,508,804                                   345,405              1,382,675                  247,775             145,359              36,689       37,939             (788,203)              6,437,307






     Segment profit (loss) before



      income tax                                             114,603                                    85,111                                    44,933                274,692                   47,711             120,431               6,977    (109,465)            (225,032)                359,961



     
                IR Contacts



     
                Company                 
     External Investor Relations



     Inbal Uliansky                       
     Ehud Helft



     +972 (3) 630 1058                    
     GK Investor Relations



     
                inbal_u@shikunbinui.com                 
              +1 617 418 3096


                                           
     
                shikunbinuni@gkir.com

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SOURCE Shikun & Binui Ltd.