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DocumentDocumentExecutive Deck 2021
Your partners for success
1 P&L numbers are YTD, 30 June
Legal Clarification and Forward-Looking Statement
This presentation is not an offering of Elco Ltd. ("The Company") securities to the public and should not be interpreted as an offering of securities to the public. This Presentation constitutes an in principle and marketing representation of the Company. The information included in this presentation and any other information that will be provided while presenting the presentation ("The information") neither constitute grounds for decision making with respect to an investment nor does it constitute a recommendation or opinion of an investment consultant or tax advisor and does by no means constitute a recommendation or opinion of an investment adviser or tax consultant and does not substitute the discretion of the potential investor. The information included in this presentation is of a summative nature and may be deemed to be presented differently from the manner it was presented in the Company's Reports but can be calculated using the data included in said reports. This presentation and the information included therein is by no means intended to substitute the requirement of reviewing the Company's reports to the public. Investment in securities in general, and in the Company's securities in particular, is not without risk. The purchase of the Company's securities requires an in-depth review of the Company's reports to the public alongside the need for legal, accounting and taxation analysis. The presentation may include additional information which was not presented in the Company's reports to the public and/or information presented differently from the manner in which it was presented in the Company's reports to the public. This presentation was prepared for summative and convenience purposes only and is by no means intended to substitute the requirement of reviewing the Company's reports to the public. In order to obtain full and comprehensive information with respect to the Company, its business and financial results and in order to have the full picture with respect to the Company's activity, and the risks it faces, please see the Reports and Periodic Reports published by the Company. It should be noted that this presentation may include Forward Looking Information as defined in the Securities Law, 5728-1968. Said information includes, inter alia, forecasts, goals, estimations, and assessments, including information presented in the form of drawings, graphs, reviews, and any information otherwise presented which refers to future events and/or matters whose realization is uncertain and beyond the Company's control. It is the Company's estimate that the main factors that may bring to the Forward Looking Information not being realized and/or to its realization in a manner different than the foregoing are, inter alia, developments in the economic environment and in the external factors impacting the Company's activity, which cannot be estimated in advance and are beyond the Company's control and/or regulatory changes and/or the realization of any of the risk factors (set forth in the Company's 2020 Annual Report).
Therefore, there is no certainty that the foregoing information shall be realized, and it may be realized differently and even materially different than the foregoing. It should be clarified that the company does not undertake to update and/or to change the information included in the presentation, in order to reflect events and/or circumstances that will take place after the preparation of the presentation.
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1928-2017
" The word
impossible is not in my dictionary.
Napoleon Bonaparte
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ELCO is a story of how a pioneering factory
became one of the leading companies in Israel.
On the first day of September,1922 Alexander Salkind starts his first day as the manager of his new factory. Since then, we haven't Stopped working, growing, &continuing his legacy.
A public company with family values.
Founded and led by the Salkind family,
a small industrial company became a multi-billion global
conglomerate, while maintaining its integrity and core values.
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In The Making
1949
ELCO Est.
First factory opens
1963
ELCO goes public
Traded on TLV Stock Exchange
1992
ELCO Acquires Electra
Entering the AC & Elevator industry
2001
2009
ELCO acquires Brandt-Moulinex
Taking a strong stance internationally
ELCO acquires Landmark Residential
Entering the MultiFamily market
2019
ELCO acquires Super-Gaz
Entering the energy industry
2021
ELCO acquires Bitan Wines & Saar Group
Entering new markets Hundreds of branches across Israel
Today
ELCO valued at $2B*
Becoming on of the largest companies in Israel
* 15.11.2021
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In A Glance
17 Countries
$368M
EBITDA
+21K Employees
$154M
Net Debt
$2.3B
NAV
$2B
Valuation
(15.11.21)
$4B
Annual Business Cycle (2020)
75
Years of experience
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Main Holding Structure
Traded (TA-90 Index)
PUBLIC COMPANY
Traded (TA-35 Index)
Main Activity Fields
// Construction, infrastructure & electro mechanical systems in Israel & US
// Facility Management // Establishing & developing real
estate projects // National Projects
Main Activity Fields
// Electric consumer products Import, export, marketing, sales & distribution of AC & electric consumer products
// Electric Goods Retail Running retail chain stores selling electrical products
// Food & Convenience Retail Franchisee of Carrefour & 7-Eleven in Israel
// Sport & Outdoor Sport & Outdoor mega brands distributors
// Real estate for investment
PUBLIC COMPANY
Manages Private Capital Funds
// Acquisition, management & flipping of affordable housing for rent in the Southeastern US
// Debt fund operating in southeasters US
// Acquisition population & management of houses for rent in Southeasters US (Single Family Rental)
// US Hotel Fund
Main Activity Fields
// Distributing LPG & natural gas to clients in the industry, commerce, agriculture & private homes
// Opening and planning of natural gas systems
// Establishing a chain for distributing natural gas in the center of Israel, Hadera & the north
// Establishment & running of electricity power stations powered by natural gas
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North America
// Electra Real Estate Texas Electra Real Estate- Georgia Electra Real Estate- Florida Electra Real Estate Virginia Electra Real Estate- Miami
// Electra Ltd- New York
Europe
// Electra Ltd- Saint Petersburg (Russia) // Electra Ltd - Bulgaria // Electra Ltd. Poland
Israel
Africa
// Electra Ltd- Nigeria // Electra Ltd- Angola
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Since 1967
Since 1991
Since 1995
Since 1996
Since 2005
Since 2012
Since 2015
Since 2016
Since 2019
Since 2020
Since 2021
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Winning DNA
1st
Construction & Infrastructure
1st
Electric retail
1st
AC
1st
Integrated Facility Management in
Israel
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Global brands, grow in Israel, with ELCO
In Consideration for 40% of the plant's shares in Ashkelon:
Bosch will pay Electra Consumption 8 Million Euros
"We are happy we managed to make Electra our partners. We trust their many years of experience & top standards"
Thomas Finke (VP Bosch Thermotechnik) 11
Exclusive Distributors of OTIS to Israel since 1967
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Long lasting partnership
"We're in a fruitful collaboration that creates value for both companies"
Carter Yung, Midea RAC Middle East Manager
"Together we achieved big successes and realize many
impressive projects "
Olivier Verhulsel, Daikin Europe Director of Distributors
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Three Generations
1949
1969
2017
TODAY
Alexander Salkind begins the journey
Establishing ELCO, a small electro-mechanical industrial company
Alexander passes on the torch to his son Gershon Salkind
ELCO grows exponentially through a series of mergers and acquisitions
Daniel & Michael receive the torch from their father Gershon
ELCO grows internationally, reaching new heights
* 15.11.2021
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Leadership
Daniel Salkind
Co-CEO Director
Michael Salkind
Co-CEO Director
Itamar Deutscher
President & CEO Electra Group
Gil Rushinek
Chairman Electra Real Estate
Chen Melamed
CEO Supergas
Zvika Shwimmer
CEO Electra Consumer Products
Avi Israeli
Vice CEO Elco
Eli Vessely
Chief Financial Officer
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ELCO Leadership
Daniel Salkind
Co-Managing Director
Michael Salkind
Co-Managing Director
Avi Israeli
Vice CEO Elco and
Eli Vessely
Chief Financial Officer
Mr. Daniel Salkind has served as CoChief Executive Officer and Member of the Board of Directors of Elco Holdings Ltd since 2002. Mr. Salkind also served as Chairman of the Board of ECP, Chairman of the Board of Supergas and he also serves as director at public and private companies. Mr. Daniel Salkind received his Bachelors degree in Economics from Haifa University, and his MBA from Northwestern University, in cooperation with Tel-Aviv University.
Mr. Michael Salkind has served as Co-Chief Executive Officer and Member of the Board of Directors of Elco Holdings Ltd since 2011. Mr. Salkind also served as Chairman of the Board of Electra Ltd. Mr. Michael Salkind received his Bachelor degree in Business Administration from Boston University, the United States, and his MBA from Columbia University, the United States.
Mr. Israeli, with an extensive background in Investment Banking. Served as Head of Business since 2000. Mr. Israeli also served as Chairman of the Board of Electra Real Estate Ltd. Avi is a qualified Lawyer and holds his Bachelor's Degree in Law from the Hebrew University of Jerusalem. He is also an MBA graduate of INSEAD Fontainebleau/France as well as of the Harvard Business School's Advanced Management Program (AMP).
Mr. Eli Vessely serves as CFO of Elco Holdings Ltd. and of Electra Real Estate Ltd. He is with the group since 1994 when he was appointed as comptroller of Elco Industries. He holds a BA in economics and accounting from Bar-Ilan University and is a licensed CPA.
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OUR UNIQUE FINGERPRINT
Always striving to the next big thing
Conservative Innovation
Close attention to every detail
Power means also admitting
mistakes
Careful Planning, swift execution
Close attention to every detail
Careful Planning, swift execution
Always striving to the next big thing
Conservative Innovation
Power means also admitting mistakes
Close attention to every detail
While we always keep our eye on the bigger picture, we understand that the devil is in the details. When we build a mega tower, we think about every window.
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Close attention to every detail
Careful Planning, swift execution
Always striving to the next big thing
Conservative Innovation
Power means also admitting mistakes
Careful Planning, swift execution
Thinking slow & fast is the way we move forward. Growing the next project requires patience to plan but also courage to execute.
Before we purchase a new company or import a world-class brand, we think it through. But when the decision is made - we storm ahead.
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Close attention to every detail
Careful Planning, swift execution
Always striving to the next big thing
Conservative Innovation
Power means also admitting mistakes
Always striving to the next big thing
We never rest. We are always on the look out for new products, new methods, new strategies & markets.
This is what makes us constantly relevant to every consumer, every day.
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Close attention to every detail
Careful Planning, swift execution
Always striving to the next big thing
Conservative Innovation
Power means also admitting mistakes
Conservative Innovation
As a company that has been successful for nearly a century, we respect & value ideas from the past. We stand proudly on the shoulders of giants that came before us.
True innovation derived from experience is rare, but it is exactly this kind of innovation that makes us keep on growing all over the world.
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Close attention to every detail
Careful Planning, swift execution
Always striving to the next big thing
Conservative Innovation
Power means also admitting mistakes
Power means also admitting mistakes
As a company that started from a small factory, we understand that every mistake, even the smallest, has power.
When hidden, it has the power to abort an entire company's operation. When admitted, it has the power to help us learn, rise from challenges & explore creative soloutions.
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Main Holding Structure
Traded (TA-90 Index)
PUBLIC COMPANY
Traded (TA-35 Index)
Main Activity Fields
// Construction, infrastructure & electro mechanical systems in Israel & US
// Facility Management // Establishing & developing real
estate projects // National Projects
Main Activity Fields
// Electric consumer products Import, export, marketing, sales & distribution of AC & electric consumer products
// Electric Goods Retail Running retail chain stores selling electrical products
// Food & Convenience Retail Franchisee of Carrefour & 7-Eleven in Israel
// Sport & Outdoor Sport & Outdoor mega brands distributors
// Real estate for investment
PUBLIC COMPANY
Manages Private Capital Funds
// Acquisition, management & flipping of affordable housing for rent in the Southeastern US
// Debt fund operating in southeasters US
// Acquisition population & management of houses for rent in Southeasters US (Single Family Rental)
// US Hotel Fund
Main Activity Fields
// Distributing LPG & natural gas to clients in the industry, commerce, agriculture & private homes
// Opening and planning of natural gas systems
// Establishing a chain for distributing natural gas in the center of Israel, Hadera & the north
// Establishment & running of electricity power stations powered by natural gas
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Main Holding Structure
Traded (TA-90 Index)
PUBLIC COMPANY
Traded (TA-35 Index)
Main Activity Fields
// Construction, infrastructure & electro mechanical systems in Israel & US
// Facility Management // Establishing & developing real
estate projects // National Projects
Main Activity Fields
// Electric consumer products Import, export, marketing, sales & distribution of AC & electric consumer products
// Electric Goods Retail Running retail chain stores selling electrical products
// Food & Convenience Retail Franchisee of Carrefour & 7-Eleven in Israel
// Sport & Outdoor Sport & Outdoor mega brands distributors
// Real estate for investment
PUBLIC COMPANY
Manages Private Capital Funds
// Acquisition, management & flipping of affordable housing for rent in the Southeastern US
// Debt fund operating in southeasters US
// Acquisition population & management of houses for rent in Southeasters US (Single Family Rental)
// US Hotel Fund
Main Activity Fields
// Distributing LPG & natural gas to clients in the industry, commerce, agriculture & private homes
// Opening and planning of natural gas systems
// Establishing a chain for distributing natural gas in the center of Israel, Hadera & the north
// Establishment & running of electricity power stations powered by natural gas
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An international market leader driven by a dedicated lifecycle approach that encompasses every project stage, from concept and development, through construction and maintenance, to long-term management and operation.
Close attention to every detail
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ELECTRA LTD
Winning Numbers
$2.2B
Valuation
$2.5B
2020 Revenue
13,200
Employees
17
Countries
$6.7B
Backlog
1945
Founded
EXPERIENCED MANAGEMENT TEAM
With a proven track-record of growing international brands
Itamar Deutscher
CEO
Shai Amsalem
CFO
Moshe Litwak
VP Commercial & Business Development
Motti Fireman
VP Human Resources & Administration
Eyal Tuchman
VP Operations & Control
Ronit Barzilay
VP Legal Counsel
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Main Holding Structure
Traded (TA-90 Index)
PUBLIC COMPANY
Traded (TA-35 Index)
Main Activity Fields
// Construction, infrastructure & electro mechanical systems in Israel & US
// Facility Management // Establishing & developing real
estate projects // National Projects
Main Activity Fields
// Electric consumer products Import, export, marketing, sales & distribution of AC & electric consumer products
// Electric Goods Retail Running retail chain stores selling electrical products
// Food & Convenience Retail Franchisee of Carrefour & 7-Eleven in Israel
// Sport & Outdoor Sport & Outdoor mega brands distributors
// Real estate for investment
PUBLIC COMPANY
Manages Private Capital Funds
// Acquisition, management & flipping of affordable housing for rent in the Southeastern US
// Debt fund operating in southeasters US
// Acquisition population & management of houses for rent in Southeasters US (Single Family Rental)
// US Hotel Fund
Main Activity Fields
// Distributing LPG & natural gas to clients in the industry, commerce, agriculture & private homes
// Opening and planning of natural gas systems
// Establishing a chain for distributing natural gas in the center of Israel, Hadera & the north
// Establishment & running of electricity power stations powered by natural gas
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A multi-industry consumer goods company. The largest and leading company in Israel with 75 years of operations in air conditioning and electric home appliances. Recently, the company has expanded to FMCG retail, such as food & beverages, sport and outdoors.
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Interacting with consumers, every moment, every day
ELECTRIC CONSUMER PRODUCTS
Division
ELECTRA RETAIL Division
FOOD
Division
FOOD
MACHSANEI HASHMAL
SHEKEM ELECTRIC
SPORTS & LEISURE
Division
SPORTS & OUTDOOR
Retail
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Consumer Products
Winning Numbers
Market Cap, as of Mar-22 Commercial Real-Estate Financial Debt, Net
EBITDA 2021, Proforma
Stores Over Annual Transactions
2021 Revenue, Proforma
Employees
+400% SHARE RATE GROWTH OVER THE LAST 3 YEARS
Exchange Closing Rate, June 2018-July 2021
20000 18000 16000 14000 12000 10000
8000 6000 4000 2000
0
Jun18 Dec18 Jun19
Dec19 Jun20
Dec20 Jun21
With a proven track-record of growing international brands
CEO Former CEO of Laline Former CEO of Delta
Senior Vice President, CFO, Head of IT
VP Real Estate Operations
VP Human Resources
COO
Legal Counsel
Head of Business Development
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Leading HVAC Factory in the Middle East
MACHSANEI HASHMAL
Official operator of Apple in Israel
The largest and leading Electric goods
retail chain in Israel
One of the largest electric goods E-com platform
Brands owned by Electra Consumer Products
Global brands distributed by Electra Consumer Products Group
SINCE 1991
SINCE 1995
SINCE 1996
SINCE 2003
SINCE 2020
SINCE 2000
SINCE 2019
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Main Holding Structure
Traded (TA-90 Index)
PUBLIC COMPANY
Traded (TA-35 Index)
Main Activity Fields
// Construction, infrastructure & electro mechanical systems in Israel & US
// Facility Management // Establishing & developing real
estate projects // National Projects
Main Activity Fields
// Electric consumer products Import, export, marketing, sales & distribution of AC & electric consumer products
// Electric Goods Retail Running retail chain stores selling electrical products
// Food & Convenience Retail Franchisee of Carrefour & 7-Eleven in Israel
// Sport & Outdoor Sport & Outdoor mega brands distributors
// Real estate for investment
PUBLIC COMPANY
Manages Private Capital Funds
// Acquisition, management & flipping of affordable housing for rent in the Southeastern US
// Debt fund operating in southeasters US
// Acquisition population & management of houses for rent in Southeasters US (Single Family Rental)
// US Hotel Fund
Main Activity Fields
// Distributing LPG & natural gas to clients in the industry, commerce, agriculture & private homes
// Opening and planning of natural gas systems
// Establishing a chain for distributing natural gas in the center of Israel, Hadera & the north
// Establishment & running of electricity power stations powered by natural gas
45
Founded in 1972 and publicly traded since 2005, Electra Real Estate, through its USbased affiliate Electra America, currently holds and manages over 80 multi-family complexes, comprising about 28,000 residential units in Texas, Florida, Georgia, Tennessee, North and South Carolina, with an overall value of over four billion dollars
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ELECTRA Real Estate
Winning Numbers
$0.73B
Valuation (TLV 125)
31K
Multi Family Managed Apartments
745
Employees
$58M
2020 Profit
8
Active Countries in US
656
Single Family Rental Houses
EXPERIENCED MANAGEMENT TEAM
With a proven track-record of growing international brands
Michael Salkind
CO-CEO and Director at Elco Holdings
Gil Rushinek
Chairman, Electra Real Estate
Joseph Lubeck
CEO of Electra America
Amir Yaniv
CEO, Electra Real Estat
Roy Maor
Head of Investor Relations, Electra Real Estate
Jim miller
CFO of Electra America
Christine Defilippis
Chief Investment Officer, Electra America
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Main Holding Structure
Traded (TA-90 Index)
PUBLIC COMPANY
Traded (TA-35 Index)
Main Activity Fields
// Construction, infrastructure & electro mechanical systems in Israel & US
// Facility Management // Establishing & developing real
estate projects // National Projects
Main Activity Fields
// Electric consumer products Import, export, marketing, sales & distribution of AC & electric consumer products
// Electric Goods Retail Running retail chain stores selling electrical products
// Food & Convenience Retail Franchisee of Carrefour & 7-Eleven in Israel
// Sport & Outdoor Sport & Outdoor mega brands distributors
// Real estate for investment
PUBLIC COMPANY
Manages Private Capital Funds
// Acquisition, management & flipping of affordable housing for rent in the Southeastern US
// Debt fund operating in southeasters US
// Acquisition population & management of houses for rent in Southeasters US (Single Family Rental)
// US Hotel Fund
Main Activity Fields
// Distributing LPG & natural gas to clients in the industry, commerce, agriculture & private homes
// Opening and planning of natural gas systems
// Establishing a chain for distributing natural gas in the center of Israel, Hadera & the north
// Establishment & running of electricity power stations powered by natural gas
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Supergas Energy is a leading energy company in the fields of LPG, natural gas, compressed natural gas, electricity, renewable energies and energy efficiency
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2020 IN NUMBERS
$165M
Revenues
$34M
Cash flow from operating activities
$235M
Equity
40%
Dividend policy
$45M
EBITDA
$15M
Net profit
$375M
Company value
$97M
Net financial debt
70 years of experience, knowledge,
professionalism and reputation
Public Company (TASE) 62% owned by ELCO
A market leader in LPG (Liquefied Petroleum
Gas), natural gas, solar and cogeneration
Significant growth potential in the renewable energy industry
Years-long
financial strength
and consistent profitability
Stable customer base in industry, commerce, services and households
Proven capabilities in
the initiation,
construction and
operation of complex energy projects
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MANAGEMENT
Chen Melamed
CEO
Nati Botbol
CFO
Roni Tzukerman
COO and Engineering
Amit Pergament
VP Business Development Israel
Yuval Baryosef
VP Business Development International
Yotam Admi
Legal Council
Ron Kessary
VP Sales
Sigal Svilim
VP IT
Eti Daniel
VP HR
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Cylinder filling facility, Kiryat Ata
HQ
Nationwide operations and infrastructure
North
Natural gas compression facility, Tavor
Haifa
Netanya
Sharon
Tel Aviv
Shfela
Jerusalem
LPG storage facility, EAPC, Ashkelon
Logistic center, Ramla
South
HQ
Facilities and infrastructure Branches
The company also operates through agents and distributors in specific geographic regions
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AREAS OF ACTIVITY
LPG & Hot Water
Natural Gas
Cogeneration
BESS
Solar Solutions
Electricity sale
Charging stations for electric vehicles
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VISION AND STRATEGY
A leading energy supplier in the Israeli market
Multi-sectoral energy
supplier, providing a wide
range of energy solutions
to end customers
LPG
Natural gas
Customer base, professional knowledge, human capital, reputation
Electricity
Energy efficiency
Solar Energy
Residential Commercial Institutions Industrial plants Transportation Government
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Entering the USA market
Entering a mature, promising and growing renewable energy market
Purchased 30% of the equity interest of Balanced Rock Power (BRP) Veto rights for all operational and business decisions
The platform is growing in the solar and storage market
BRP develops utility scale solar and storage projects across the USA until the Notice To Proceed (NTP) stage. Supergas has a right of first offer to acquire projects that BRP developed BRP currently owns a portfolio of over 5GW solar projects and 10GW storage projects
Synergies to Supergas portfolio and business plans Leveraging equity by financing the BRP activity, Developing and owning assets as an Independent Power Producer (IPP), Learning and gaining experience in the US dynamic market,
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FINANCE
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ELCO AND ITS SUBSIDIARIES
* Annual Yield compared to the market
STOCK PERFORMANCE
700 600 500 400 300 200 100
0
Elco
The growth rate as of January 2018. Supergas was listed in June 2020.
Electra LTD
Electra Consumer
Aggregate yield as of 29/08/2021
01/01/2018 01/02/2018 01/03/2018 01/04/2018 01/05/2018 01/06/2018 01/07/2018 01/08/2018 01/09/2018 01/10/2018 01/11/2018 01/12/2018 01/01/2019 01/02/2019 01/03/2019 01/04/2019 01/05/2019 01/06/2019 01/07/2019 01/08/2019 01/09/2019 01/10/2019 01/11/2019 01/12/2019 01/01/2020 01/02/2020 01/03/2020 01/04/2020 01/05/2020 01/06/2020 01/07/2020 01/08/2020 01/09/2020 01/10/2020 01/11/2020 01/12/2020 01/01/2021 01/02/2021 01/03/2021 01/04/2021 01/05/2021 01/06/2021 01/07/2021 01/08/2021
Electra Real Estate
SUPERGAS
513%+
279%+ 195%+ 137%+ -2%
61
ELCO in Figures (1)
Dividends paid and declared in 2021 and
up to Aug 21'
$18.4M
Shareholder's Share in the
equity
$553M
Shareholder's holding rate in the Company
65.5%
Company value in the Stock Exchange
(15.11.21)
$2B
Shareholder's share in net profits
$61M
Revenues in the Reporting
Period
$2B
Dividends received and declared by subsidiaries in 2021 and up to Aug 21'
$34M
Number of Employees
21,000
Net Debt
$154M
Profit per share
$2.2
Net Asset Value (NAV)
$2.3B
EBITDA
$237M
63
PROFIT ATTRIBUTABLE TO THE SHAREHOLDERS
Annual Profit
[ in $ Millions]
119
114
87 79
Y-2016
37
Y-2017
20
Y-2018
Y-2019
Y-2020
LTM 2021 (1) 64
CONSOLIDATED FINANCIAL INFORMATION
[ in $ Millions]
Y-2020
Sales // Gross // Profit EBIT //
EBITDA //
3,379 499 201 316
Net Profit //
178
Q2-2020 768 114 53 84 34
Q2-2021 1,072 208 100 141 65
Rate of change between the quarters ( %)
+36% +83% +87% +68% +94%
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THANK YOU
THE GROUP CONTACT Tali Shorek | Personal Assistant To CEO
Email: tali@elco.co.il T +972-3-6939670 F +972-3-6913256 Electra Tower Fl. 50, 98 Yigal Alon st. Tel Aviv-Yafo ,978914, Israel
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