Ellomay Capital Reports Publication of Financial Results of Dorad Energy Ltd. for the Three and Nine
Months Ended September 30, 2019

Tel-Aviv, Israel, November 29, 2019 – Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, today reported the publication in Israel of financial statements for the three and nine months ended September 30, 2019 of Dorad Energy Ltd. (“Dorad”), in which Ellomay currently indirectly holds approximately 9.4%.

On November 27, 2019, Amos Luzon Entrepreneurship and Energy Group Ltd. (f/k/a U. Dori Group Ltd.) (the “Luzon Group”), an Israeli public company that currently holds 50% of U. Dori Energy Infrastructures Ltd. (“Dori Energy”), which, in turn, holds 18.75% of Dorad, published its quarterly report in Israel based on the requirements of the Israeli Securities Law, 1968. Based on applicable regulatory requirements, the quarterly report of the Luzon Group includes the financial statements of Dorad for the same period.

The financial results of Dorad for the quarter ended September 30, 2019 were prepared in accordance with International Financial Reporting Standards. Ellomay will include its indirect share of these results (through its holdings in Dori Energy) in its financial results for this period, which are currently expected to be published on or about December 31, 2019.  In an effort to provide Ellomay’s shareholders with access to Dorad’s financial results (which were published in Hebrew), Ellomay hereby provides a convenience translation of Dorad’s financial results.

Dorad Financial Highlights

 

 

Based on the information provided by Dorad, the demand for electricity by Dorad’s customers is seasonal and is affected by, inter alia, the climate prevailing in that season. The months of the year are split into three seasons as follows: the summer season – the months of July and August; the winter season - the months of December, January and February; and intermediate seasons – (spring and autumn), the months from March to June and from September to November. There is a higher hourly demand for electricity during the winter and summer seasons, and the average electricity consumption per hour is higher in these seasons than in the intermediate seasons and is even characterized by peak demands due to extreme climate conditions of heat or cold. In addition, Dorad’s revenues are affected by the change in load and time tariffs - TAOZ (an electricity tariff that varies across seasons and across the day in accordance with demand hour clusters), as, on average, TAOZ tariffs are higher in the summer season than in the intermediate and winter seasons. Therefore, the results presented for the quarter ended September 30, 2019, which include the summer months of –July and August and the intermediate month of September, are not indicative of full year results.

A translation of the financial results for Dorad as of and for the year ended December 31, 2018 and as of and for the three and nine month periods ended September 30, 2018 and 2019 is included at the end of this press release. Ellomay does not undertake to separately report Dorad’s financial results in a press release in the future. Neither Ellomay nor its independent public accountants have reviewed or consulted with the Amos Luzon Entrepreneurship and Energy Group Ltd., Dori Energy or Dorad with respect to the financial results included in this press release.

About Ellomay Capital Ltd.

 

Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe and Israel.

 

To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy and Spain, including:

 

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

 

For more information about Ellomay, visit http://www.ellomay.com.

 

Information Relating to Forward-Looking Statements

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

Kalia Weintraub

CFO

Tel: +972 (3) 797-1111

Email: HilaI@ellomay.com

Dorad Energy Ltd.

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

Dorad Energy Ltd.

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		For the nine months ended								For the three months ended								Year ended
		September 30								September 30								December 31
		2019					* 2018				2019				* 2018				* 2018
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
		NIS thousands				NIS thousands				NIS thousands				NIS thousands				NIS thousands
Revenues			2,069,997				1,990,177				765,384				730,891				2,628,607
Operating costs of the
Power Plant
Energy costs			564,179				517,660				214,253				186,913				687,431
Electricity purchase and
infrastructure services			896,575				880,927				291,419				288,898				1,194,948
Depreciation and
amortization			161,028				163,977				55,660				56,572				217,795
Other operating costs			119,556				102,333				37,788				37,321				136,705
Total operating costs
of Power Plant			1,741,338				1,664,897				599,120				569,704				2,236,879
Profit from operating
the Power Plant			328,659				325,280				166,264				161,187				391,728
General and
administrative expenses			14,832				15,401				5,105				4,873				20,740
Operating profit			313,827				309,879				161,159				156,314				370,988
Financing income			3,162				16,540				1,225				4,684				24,650
Financing expenses			157,694				176,550				25,072				55,670				227,988
Financing expenses, net			154,532				160,010				23,847				50,986				203,338
Profit before
taxes on income			159,295				149,869				137,312				105,328				167,650
Taxes on income			36,362				34,476				31,574				24,223				33,505
Profit for the period			122,933				115,393				105,738				81,105				134,145

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

Dorad Energy Ltd.

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Balance as at
July 1, 2018 (Unaudited)			11				642,199				3,748				315,175				961,133
Profit for the period			-				-				-				81,105				81,105
Balance as at
September 30, 2018 * (Unaudited)			11				642,199				3,748				396,280				1,042,238

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

Dorad Energy Ltd.

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Capital reserve

for activities

Share

Share

with

Retained

capital

premium

shareholders

earnings

Total Equity

NIS thousands

NIS thousands

NIS thousands

NIS thousands

NIS thousands

For the year ended

December 31, 2018 (Audited)

Balance as at

January 1, 2018 (Audited)

11

642,199

3,748

280,887

926,845

Profit for the year

-

-

-

134,145

134,145

Balance as at

December 31, 2018 * (Audited)

11

642,199

3,748

415,032

1,060,990

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

Dorad Energy Ltd.

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		For the nine months ended								For the three months ended								Year ended
		September 30								September 30								December 31
		2019					* 2018				2019				* 2018				* 2018
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
		NIS thousands				NIS thousands				NIS thousands				NIS thousands				NIS thousands
Cash flows from
operating activities:
Profit for the period			122,933				115,393				105,738				81,105				134,145
Adjustments:
Depreciation and amortization
and fuel consumption			185,403				167,960				65,427				56,917				223,028
Taxes on income			36,362				34,476				31,574				24,223				33,505
Financing expenses, net			154,532				160,010				23,847				50,986				203,338
			376,297				362,446				120,848				132,126				459,871
Change in trade receivables			44,688				76,488				2,894				(6,539	)			32,536
Change in other receivables			39,345				23,955				26,454				14,299				6,119
Change in trade payables			(76,871	)			(161,484	)			(2,782	)			(11,664	)			(81,273	)
Change in other payables			9,884				16,985				2,100				17,719				304
			17,046				(44,056	)			28,666				13,815				(42,314	)
Net cash flows provided
by operating activities			516,276				433,783				255,252				227,046				551,702
Cash flows used in
investing activities
Proceeds (payment) for settlement of
financial derivatives			(2,567	)			4,997				(1,697	)			2,640				9,957
Insurance proceeds in respect of
damage to fixed asset			8,336				20,619				-				1,181				20,619
Investment in long-term
restricted deposit			-				(7,158	)			-				-				(12,158	)
Investment in fixed assets			(31,789	)			(82,341	)			(11,133	)			(21,291	)			(79,855	)
Investment in intangible assets			(615	)			(141	)			(596	)			(18	)			(222	)
Interest received			3,140				2,461				1,222				978				3,497
Net cash flows used in
investing activities			(23,495	)			(61,563	)			(12,204	)			(16,510	)			(58,162	)
Cash flows from
financing activities:
Repayment of loans from
related parties			(17,704	)			(62,802	)			-				-				(160,326	)
Repayment of loans from banks			(101,430	)			(91,345	)			-				-				(181,970	)
Interest paid			(92,970	)			(119,803	)			(172	)			(356	)			(220,765	)
Repayment of lease liability principal			(4,399	)			-				(154	)			-				-
Net cash flows used in
financing activities			(216,503	)			(273,950	)			(326	)			(356	)			(563,061	)
Net increase (decrease) in cash
and cash equivalents for
the period			276,278				98,270				242,722				210,180				(69,521	)
Effect of exchange rate fluctuations
on cash and cash equivalents			148				1,642				28				88				2,559
Cash and cash equivalents at
beginning of period			117,220				184,182				150,896				73,826				184,182
Cash and cash equivalents at end
of period			393,646				284,094				393,646				284,094				117,220

* Effective as of January 1, 2019, Dorad applied IFRS 16, Leases. According to the transition method, comparative figures were not restated.

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