6-K
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign
Private Issuer
Pursuant to Rule 13a-16
or 15d-16
of the Securities
Exchange Act of 1934
For the Month of May
2009
HADERA PAPER LTD.
(Translation of
Registrants Name into English)
P.O. Box 142, Hadera,
Israel
(Address of Principal Corporate
Offices)
Indicate by check mark whether the
registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
x
Form 20-F o
Form 40-F
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): o
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to
provide an attached annual report to security holders.
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): o
Note: Regulation S-T Rule
101(b)(7) only permits the submission in paper of a Form 6-K submitted to furnish a report
or other document that the registrant foreign private issuer must furnish and make public
under the laws of the jurisdiction in which the registrant is incorporated, domiciled or
legally organized (the registrants home country), or under the rules of
the home country exchange on which the registrants securities are traded, as long as
the report or other document is not a press release, is not required to be and has not
been distributed to the registrants security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission filing on
EDGAR.
Indicate by check mark whether the
registrant by furnishing the information contained in this form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934:
o
Yes x
No
If Yes is marked,
indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
82-______________
Attached
hereto as Exhibit 1 and incorporated herein by reference is the Registrants press
release dated May 11, 2009 with respect to the Registrants results of operations
for the quarter ended March 31, 2009.
Attached
hereto as Exhibit 2 and incorporated herein by reference is the Registrants
Management Discussion with respect to the Registrants results of operations for the
quarter ended March 31, 2009.
Attached
hereto as Exhibit 3 and incorporated herein by reference are the Registrants
unaudited condensed consolidated financial statements for the quarter ended March 31,
2009.
Attached
hereto as Exhibit 4 and incorporated herein by reference are the unaudited condensed
interim consolidated financial statements of Mondi Paper Hadera Ltd. and subsidiaries with
respect to the quarter ended March 31, 2009.
Attached
hereto as Exhibit 5 and incorporated herein by reference are the unaudited condensed
interim consolidated financial statements of Hogla-Kimberly Ltd. and subsidiaries with
respect to the quarter ended March 31, 2009.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
HADERA PAPER LTD. (Registrant)
By: /s/ Lea Katz
Lea Katz Corporate Secretary |
Dated: May 11, 2009.
EXHIBIT INDEX
1. |
|
Press
release dated May 11, 2009. |
2. |
|
Registrants
management discussion. |
3. |
|
Registrants
unaudited condensed consolidated financial statements. |
4. |
|
Unaudited
condensed interim consolidated financial statements of Mondi Paper Hadera
Ltd. and subsidiaries. |
5. |
|
Unaudited condensed interim consolidated financial 5. statements of Hogla- Kimberly Ltd. and
subsidiaries. |
Exhibit 1
|
NEWS |
|
For Release: IMMEDIATE |
Hadera Paper Ltd.
Reports
Financial Results For First Quarter Ended March 31, 2009
Hadera, Israel, May 11, 2009
Hadera Paper Ltd. (AMEX:AIP) (the Company or Hadera Paper) today
reported financial results for the first quarter ended March 31, 2009. The Company, its
subsidiaries and associated companies are referred to hereinafter as the
Group.
Since the Companys share in the
earnings of associated companies constitutes a material component in the companys
statement of income (primarily on account of its share in the earnings of Mondi Hadera
Paper Ltd. (Mondi Hadera) and Hogla-Kimberly Ltd.(H-K)), before
the presentation of the consolidated data below, the aggregate data which include the
results of all the companies in the Hadera Paper Group (including the associated companies
whose results appear in the financial statements under earnings from associated
companies) is being presented, without considering the rate of holding therein and
net of mutual sales
Aggregate sales amounted to NIS 830.0
million during the reported period, as compared with NIS 847.6 million in the
corresponding period last year.
Aggregate operating profit totaled
NIS 63.9 million during the reported period, as compared with NIS 59.8 million in the
corresponding period last year. The growth in aggregate operating profit that was achieved
despite the erosion of prices at some of the companies originates from the improved growth
and the profits of the Groups operations in the marketing of office supplies, the
continuing growth and improved profitability at H-K in Israel and the continuing trend of
scaling down the operating loss in Turkey, coupled with non-recurring revenues on account
of a unilateral dividend from an associated company.
The Consolidated Data set forth below
excluding the results of operation of the associated companies: Mondi Hadera, H-K.
Consolidated Data include the sales turnover of Carmel Containers Systems Ltd.
(Carmel) and Frenkel- C.D. Ltd. (Frenkel- C.D.) that were
consolidated as of September 2008 due to the completion of transaction for the acquisition
of Carmel shares.
As of January 1, 2009, the Company
has been implementing IFRS8, and has consequently identified the packaging products and
cardboard sectors, covering the operations of both Carmel and Frenkel CD as a separate
sector.
Consolidated sales in the reported
period amounted to NIS 229.9 million, as compared with NIS 142.5 million in the
corresponding period last year, representing a 61.3% increase which is primarily due to
the consolidation of the data of Carmel and Frenkel CD during the reported period,
amounting to approximately NIS 132.5 million, that had not been consolidated last year.
Operating profit totaled NIS 18.5
million during the reported period, as compared with NIS 17.5 million in the corresponding
period last year. The improvement in the operating profit despite the erosion of selling
prices of packaging paper and recycling, originated from an improvement in the
profitability of Graffiti, coupled with the recording of non-recurring revenues of NIS
16.4 million on account of a unilateral dividend that was offset by a certain slowdown in
the operations of some of the companies as a result of the global crisis and its local
influence.
The net profit attributed to the
Companys shareholders in the reported period amounted to NIS 19.1 million, as
compared with net profit of NIS 21.3 million in the corresponding period last year, and
was affected by improved profitability at some Group companies in Israel due to income
recorded from distribution of unilateral dividend in respect of the distribution of
preferred shares by an associated company, that resulted in net revenues to the Company
amounting to approximately NIS 8.4 million. Furthermore, the reduction in the
Companys share of losses from operations in Turkey (KCTR), as compared with the
corresponding period last year has also contributed to improved profitability, while net
profit decreased due to the recording of an expenditure amounting to NIS 3.0 million from
the valuation of the Mondi PUT option.
Basic earnings per share amounted to
NIS 3.77 per share ($0.90 per share) in the reported period, as compared with NIS 4.20 per
share ($1.18 per share) in the corresponding period last year.
The negative inflation rate during
the reported period amounted to -0.1%, as compared with a positive inflation rate of 0.1%
in the corresponding period last year.
The USD exchange rate was devalued in
the first quarter of this year by 10.1%, as compared with a 7.6% revaluation in the
corresponding period last year.
Mr. Avi Brener, Chief Executive
Officer of the Company said that The Group manages an extensive,
relatively diversified portfolio of companies and businesses and this
fact helps the Group to face the global and domestic crisis. The Companys
operating segments are focused on basic consumer goods and inputs, which are
relatively less impacted by implications of the global financial and economic
crisis. In the first quarter of 2009, the downward trend in input prices
continued for fiber, chemicals and commodities as a result of the global
crisis, which partially compensates for the slow-down in operations in both
domestic and export markets. These savings were partially offset by higher
electric utility prices in the first quarter of 2009 and by higher water
prices. The NIS devaluation vs. the USD, and the NIS devaluation vs. the Euro
have both negatively impacted imported inputs for the Company, while improving
the sale prices that have been eroded, as set forth above, in the Companys
major operating segments, wherein prices are denominated in USD. The overall
business range and currency operations of the Hadera Paper Group, is relatively
balanced and the Companys exposure to sharp fluctuations in exchange
rates is therefore low. In view of the Companys estimates regarding
continued paper imports at dumping prices, in both packaging paper and fine
paper, the Company and Mondi Hadera, have appealed to the Supervisor of
Anti-dumping Charges and Homogenization Charges at the Ministry of Industry,
Trade and Employment (the Supervisor) and has filed a complaint
concerning import at dumping of packaging paper from several European countries
to Israel. The Supervisor decided to launch an investigation of this issue.
There is no certainty that the above complaints would be accepted, and the
Company is currently unable to estimate the impact of such acceptance on its
business results.
2
In the reported period, the Company
continued to expand the new recycled packaging paper manufacturing network, and
construction of the facility at the Hadera site is making progress, in preparation for
installation of equipment, which has started arriving on site, toward the planned complete
operation of the new machine in early 2010.
Financial expenses during the
reported period amounted to NIS 4.6 million, as compared with NIS 6.8 million in the
corresponding period last year.
The companys share in the
earnings of associated companies totaled NIS 15.0 million during the reported period, as
compared with NIS 14.6 million in the corresponding period last year.
The following principal changes were
recorded in the Companys share in the earnings of associated companies, in relation
to the corresponding period last year:
|
|
The
Companys share in the net profit of Mondi Hadera (49.9%) decreased by NIS 2.5
million. The decrease in income was primarily due to a decrease in Mondis operating
income, from NIS 9.6 million last year to NIS 5.4 million this year primarily due
to price erosion due to the devaluation of the US dollar. The net profit also decreased
as a result of a slight increase in financial expenses in the reported period in relation
to last year, primarily on account of the impact of the devaluation of the NIS against
the dollar. |
|
|
The
companys share in the net profit of H-K Israel (49.9%) increased by NIS 1.7
million. Hoglas operating income increased from NIS 41.1 million to NIS 47.9
million this year. The improved operating profit originated from a quantitative increase
in sales, improved selling prices in certain areas of operation, the continuing trend of
raising the proportion of some of the premium products out of the products basket, while
innovating products and empowering the Companys brands, the lower prices of some of
the inputs at the Company in light of the erosion of global commodity prices, the
continuing efficiency measures across the company and the savings realized in purchasing
have all contributed to the significant improvement in earnings. |
|
|
The
companys share in the losses of KCTR Turkey (formerly Ovisan) (49.9%) has decreased
by approximately NIS 2.0 million. The significant decrease in the loss is attributed to
the growth in the volumes of operation that led to a significant reduction in the
operating loss, from NIS 11.0 million last year to NIS 7.9 million this year. Moreover,
due to the increase in the shareholders equity of KCTR through a financial influx
from Hogla last year and during the reported period the bank loans were
repaid, while significantly reducing the financial expenses, thereby leading to an
additional reduction in the net loss. |
This report contains various
forward-looking statements based upon the Board of Directors present expectations
and estimates regarding the operations and plans of the Group and its business
environment. The Company does not guarantee that the future results of operations will
coincide with the forward-looking statements and these may in fact differ considerably
from the present forecasts as a result of factors that may change in the future, such as
changes in costs and market conditions, failure to achieve projected goals, failure to
achieve anticipated efficiencies and other factors which lie outside the control of the
Company as well as certain other risks detailed from time to time in the Companys
filings with the Securities and Exchange Commission. The Company undertakes no obligation
for publicly updating the said forward-looking statements, regardless of whether these
updates originate from new information, future events or any other reason.
3
Hadera PAPER LTD.
SUMMARY OF RESULTS
(UNAUDITED)
except per share
amounts
Three months ended
March 31,
NIS IN THOUSANDS
(1)
|
2009
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
| 229,881 |
|
| 142,519 |
|
| | |
Net earnings attributed to the Company's | | |
shareholders | | |
| 19,079 |
|
| 21,270 |
|
| | |
Basic net earnings per share attributed to | | |
the Company's shareholders | | |
| 3.77 |
|
| 4.20 |
|
| | |
Fully diluted earnings per share attributed | | |
to the Company's shareholders | | |
| 3.77 |
|
| 4.20 |
|
(1) The
representative exchange rate at March 31, 2009 was NIS 4.188=$1.00.
Contact:
Lea Katz, Adv.
Corporate Secretary and
Chief of Legal Department
Hadera Paper Ltd. Group
Tel:+972-4-6349408
Leak@hadera-paper.co.il
4
Exhibit 2
Translation from Hebrew
May 10, 2009
MANAGEMENT DISCUSSION
We are honored to present the
consolidated financial statements of Hadera Paper Group Ltd. (Hadera Paper or
The Company) (formerly - American Israeli Paper Mills - AIPM) for the first three
months of 2009. The Company, its consolidated subsidiaries and its associated
companies - hereinafter: The Group.
A. |
Description
of the Corporations Business |
|
Hadera
Paper Group deals in the manufacture and sale of packaging paper, corrugated board
packaging, consumer product packaging and unique packaging for industry, recycling of
paper and plastic waste and in the marketing of office supplies through
subsidiaries. The Company also holds associated companies that deal in the manufacture
and marketing of fine paper, in the manufacture and marketing of household paper
products, hygiene products, disposable diapers and complementary kitchen products. |
|
The
Companys securities are traded on the Tel Aviv Stock Exchange and on American Stock
Exchange, AMEX. |
|
a |
Principal
Current Operations |
|
1. |
The
Business Environment |
|
The
local and global economic crisis deepened in the first quarter of this year, as part of
the global financial crisis. Growing unemployment in Israel and worldwide, significant
cut-backs in investment and in credit have significantly impacted demand and global
trading in the finance, services and consumer goods sectors. |
|
During
the reported period, global and domestic financial markets continue to be unstable, and
steps initiated by governments and countries around the world to inject capital and
expand credit should gradually rein in the deepening recession and expand investment,
while reducing unemployment and gradually encouraging demand leading to higher
consumption by the institutional and private sectors. |
|
2. |
Impact
of the business environment on Company operations |
|
Hadera
Paper Group manages an extensive, relatively diversified portfolio of companies and
businesses and this fact helps the Group to face the global and domestic crisis.
The Companys operating segments are focused on basic consumer goods and inputs,
which are relatively less impacted by implications of the global financial and economic
crisis. |
1
|
Operations
in the paper product segment are in the B2B markets and in B2C markets, are exposed to
relatively minor fluctuations in demand during crisis periods, such as the current one;
changes in demand for FMCG products, such as paper products and absorbent products,
ranges from zero to a 5%-10% decline, with the impact primarily felt in price competition
and in customer and consumer preference toward attractively-priced products. |
|
The
Company has adopted a multi-year marketing business strategy, for Premium, Value and
Economy products, which affords the Company the necessary flexibility to protect market
share, while maintaining operational volumes and optimizing profitability |
|
In
the packaging paper and recycling sector, the decline in global trade in white
appliances, electronics, motor vehicles, textile, furniture and other sectors is leading
to lower demand for corrugated cardboard used for packaging such products thereby
creating excess supply of packaging paper in Europe and worldwide. |
|
According
to Companys estimation, since 2008, the import of these products is conducted at
dumping prices, primarily from Europe, and the Company is acting on this issue vis-à-vis
the Anti-Dumping Supervisor in order to reduce volumes and raise prices to the price
level in the country of origin. |
|
As
for fine paper, the impact of the global crisis is most apparent in the advertising
industry, and demand for newspaper and fine paper has decreased by 5%-10% globally. |
|
This
lower demand is leading to excess supply in Europe and worldwide, and fine paper has been
imported to Israel at dumping prices since 2008. The Company is also acting on this issue
vis-à-vis the Anti-Dumping Supervisor in order to reduce or stop imports at such
price levels. |
|
In
the office supplies marketing sector, the crisis has led to reduced purchasing by most
companies, as part of their efficiency enhancement processes, but Graffiti has succeeded
in applying its strategy for accelerated growth to expand its operations in the office
supplies market for the business sector, while improving its profitability. |
|
In
summary, the Groups financial robustness and its efficiency on a global scale in
terms of manufacturing, energy and supply chain, together with its diversified portfolio
focused on basic consumer goods, are allowing the Group to compete in the tough,
challenging business environment with relatively limited erosion of its operating volume
and net income. |
|
In
addition to the aforementioned global financial crisis, Israels economy saw
significant fluctuations in the exchange rates of major currencies vs. the NIS in the
first quarter of 2009. |
|
These
market developments and fluctuations may potentially have adverse effects on the business
results of the Company and its investee companies, including an effect on their
liquidity, the value of their assets, the ability to divest assets, the state of their
business, their financial indicators and standards, their credit rating, ability to
distribute dividends, ability to raise financing for their current operations and
long-term plans, as well as on their financing terms. |
2
|
True
to the date of publication of the financial statements, there is no material impact as a
result of the continuation of the crisis, on the Companys business results, its
financial robustness or the value of its assets. |
|
The
above information constitutes forward-looking information as defined in the Securities
Law, based on the companys estimates at the date of this report. These estimates
may not materialize in whole or in part or may materialize in a different
manner, inter alia on account of factors that lie outside the control of the company,
such as the global crisis in credit and banking markets. |
|
As
at the date of publication of these financial statements, no material changes have
occurred to the Companys risk management policy. |
|
In
the first quarter of 2009, the downward trend in input prices continued for fiber,
chemicals and commodities as a result of the global crisis, which partially compensates
for the slow-down in operations in both domestic and export markets. These savings were
partially offset by higher electric utility prices in the first quarter of 2009 by
an average of 2% and by higher water prices by an average of 7% over
the corresponding period last year. The NIS devaluation vs. the USD by a rate of 10.1% in
the first quarter, as compared with the corresponding period last year, and the NIS
devaluation vs. the Euro by 5.2% have both negatively impacted imported inputs for the
Company, while improving the sale prices that have been eroded, as set forth above, in
the Companys major operating segments, wherein prices are denominated in USD. |
|
The
overall business range and currency operations of the Hadera Paper Group, including its
associated companies, is relatively balanced and the Companys exposure to sharp
fluctuations in exchange rates is therefore low. |
|
The
negative inflation rate during the reported period amounted to -0.1%, as compared with a
positive inflation rate of 0.1% in the corresponding period last year. |
|
The
USD exchange rate was devalued in the first quarter of this year by 10.1%, as compared
with a 7.6% revaluation in the corresponding period last year. |
|
The
above information pertaining to trends in the paper market constitutes forward-looking
information as defined in the Securities Law, based on the companys estimates at
the date of this report. These estimates may not materialize in whole or in part
or may materialize in a different manner, inter alia on account of factors that lie
outside the control of the company, such as changes in global raw material prices and
changes in the supply and demand of global paper products. |
3
|
3. |
Group
operations and the business environment |
|
In
view of the global and domestic recession, the Company has accelerated the implementation
of its plans for continued efficiency improvement and cost cutting across the various
operating segments and companies. |
|
At
the same time, the Company has focused its efforts in various areas of purchasing so as
to increase cost savings and to maximize the benefit from the downward trend in input and
product prices in most of the Groups sectors of operation. The Company has acted to
intensively control and manage its operational working capital, and has implemented
focused control over customer credit and risk management. |
|
In
the first quarter of the year, Group companies have attained their objectives for
improved efficiency and cost savings in purchasing, as specified at the end of 2008, and
the continued successful implementation of these plans during the year should support
Company performance, in spite of the tough business environment. |
|
Along
with the above, the Company continued its efforts to locate business opportunities in its
core areas in order to accelerate growth and improve profitability in Israel and
worldwide. |
|
The
Company has intensified its development and innovation operations in the various business
segments, to create new products that will provide clear added value for both businesses
and consumers. |
|
This
effort, focused on the Groups technology center as well as on those of the various
companies, has led to launches of new and improved products during the first quarter of
the year in both the FMCG and paper segments. |
|
In
view of the Companys estimates regarding continued paper imports at dumping prices,
primarily from Europe, in both the packaging paper segment and the fine paper segment,
the Company and Mondi Hadera Paper, an associated company, have appealed to the
Supervisor of Anti-dumping Charges and Homogenization Charges at the Ministry of
Industry, Trade and Employment (hereinafter: the Supervisor) and has filed a
complaint concerning import at dumping of packaging paper from several European countries
to Israel. Upon review of the complaint, the Supervisor decided to launch an
investigation of this issue. On February 26, 2009, the company announced that the
associated company Mondi Hadera Paper had filed a complaint to the supervisor, regarding
the dumping imports of fine paper from several European nations to Israel. Upon review of
the complaint, the Supervisor decided to launch an investigation of this issue. According
to the Company announcement, there is no certainty that the above complaints would be
accepted, and the Company is currently unable to estimate the impact of such acceptance
on its business results. |
|
During
the reported period, the Company also continued its environmental protection operations,
upgrading technological and operational systems to improve paper recycling, expand the
reuse of process water and reduce the noise impact on Company staff, community residents
as well as for improving financial results. |
|
The
Company has continued to implement its policy with regard to social responsibility and
contribution to the community, with Company staff and management at its various locations
in Israel playing an active role in community involvement to support youth and reduce
social inequality, to provide equal opportunity for education and individual achievement
in society and in the community. |
4
|
4. |
Principal
Current Operations |
|
During
the reported period, as a result of change in the business environment, aggregate sales
decreased slightly by 2.1% as compared with total aggregate sales in the
corresponding period last year. |
|
Implementation
and Assimilation of Organization-Wide Processes |
|
In
the course of the reported period, the Group companies continued to implement and
assimilate organization-wide processes that are intended to empower Group-company
operations and support continued growth and increased profitability in organizational
development, Group purchasing, B2B marketing, development and innovation. The gradual and
successful implementation of these plans will enable the company to better deal with the
challenging business environment, while improving profitability. |
|
5. |
Promoting
the Strategic Plans |
|
In
parallel to the ongoing operations, the Company is working to successfully implement the
strategic plans that are intended to lead to continued growth in operations and improved
profitability over the coming years: |
|
5.1. |
Expanding
the recycled packaging paper manufacturing network |
|
The
investment in the project for the construction of the new manufacturing network, totaling
NIS 690 million was approved on October 15, 2007 by the Companys Board of Directors.
The Company has selected the most highly advanced technologies in this area, and the
leading suppliers in the sector, in order to amplify its competitive advantage and
potential for profitability in the long term. |
|
The
implementation of the project is advancing as planned and the Company has completed the
signing of central agreements in 2008, for the purchasing of the main manufacturing
equipment. Construction of the facility at the Hadera site is making progress, in
preparation for installation of equipment, which has started arriving on site. |
|
In
parallel, the Amnir subsidiary is continuing to expand the collection of cardboard and
newspaper waste and is accumulating inventories toward the planned complete operation of
the new machine in early 2010. |
|
As
part of this project, the company is investing in the reorganization of the principal site
in Hadera, including an expansion of the energy system and the adaptation of the traffic
routes and upgrading of environmental systems, as required. |
5
|
5.2. |
Innovative
development of high-quality recycled paper |
|
Over
the past year, the packaging paper and recycling division launched the rapid development
of paper types based on 100% recycled fibers, whose superior quality would allow them to
replace pulp-based packaging paper in the corrugated board industry in Israel and
overseas. |
|
The
technological and operational development process is currently in advanced stages and is
meant to increase the volume of the potential market for packaging paper for the local
corrugated board industry, from 170,000 tons per annum at the present time, to
approximately 250,000 tons per annum in the coming years. |
|
The
development of new paper types is based on the characterization of fibers, developing and
implementing new chemical additives and using these advanced manufacturing technologies,
both in the existing production lines and in the new production line, will render it
possible to gradually launch new products this year and throughout 2010. |
|
According
to the plan, the cost of the new paper types will be competitive as compared with the cost
of pulp-based paper and will allow for a gradual improvement in the profitability of the
sector. According to laboratory tests, the indications from the development process in the
production lines and initial markets tests, it appears that the probability for success in
this area is relatively high. |
|
During
this quarter, the Company started marketing this products to both the domestic and export
markets. The expansion of the sales volumes of these products is planned for this year. |
|
The
above information pertaining to innovative developments constitutes forward-looking
information as defined in the Securities Law, based on the companys estimates at the
date of this report. These estimates may not materialize in whole or in part
or may materialize in a different manner, inter alia on account of completion of
development and other factors that lie outside the control of the company. |
|
5.3. |
Developing
Export Markets for Packaging Paper |
|
The
Company worked during the quarter to develop export markets and has reached understandings
with several agents active in various countries and in Europe regarding the distribution
and marketing of various types of packaging paper. The activity has already begun and will
gradually grow throughout the year. |
|
5.4. |
The
Strategic Investment in Turkey |
|
In
2008, Kimberly Clark Turkey (KCTR) a wholly-owned Hogla Kimberly subsidiary (49.9%
of which are held by the Company) continued to implement its Global Business Plan
(GBP), that was formulated together with the international partner, Kimberly Clark. Corp.
The plan is intended to introduce Kimberly Clarks global brands to Turkey, on the
basis of local manufacturing. If fully implemented, KCTR is expected to grow to become by
2015 a company, with annual sales in the area of $300 million. |
6
|
The
KCTR turnover amounted to $32.0 million during the reported period, as compared with $27.3
million in the corresponding quarter last year, representing growth of 17.2%. |
|
During
the reported period the Company continued to enhance its brands especially the
Huggies and KOTEX brands while recording constant growth in market share and in the
rising awareness to the Companys products. In parallel, the volume of exports to
Kimberly-Clark in various other countries in Europe and Africa also increased. |
|
Two
Effie awards were received during the last quarter for marketing in Turkey and serve as an
indication of professional marketing in launching the brands and enhancing them. |
|
The
companys continuing marketing and advertising operations are being felt in the
gradual strengthening of the brands, as expressed by consumer studies that are being
conducted regularly, alongside consistent growth in sales, while curtailing the operating
loss and a considerable reduction in the Companys net loss. |
|
As
part of the strategic plan, the Company intends to continue its marketing and sales
promotion efforts, while launching new products that will support the establishment of the
brands and the creation of customer loyalty. |
|
In
the course of the reported period, the Company continued to promote the collaboration with
Unilever and expanded the number of points of sale in the Turkish market that sell KCTR
products. |
|
In
parallel, the Company has started the marketing of products to BIM Turkeys
largest supermarket chain. |
|
The
continuing high level of competition in the markets where the company is working to
introduce and penetrate its brands calls for regular and significant investments in
advertising and sales promotion. |
|
All
of the expenses detailed above associated with the penetration of products, advertising,
expansion of the distribution network and more are regularly recorded as an
expenditure in the KCTR statements of income. The KCTR operating loss in the reported
period amounted to NIS 7.9 million (approx. $2.0 million), as compared with NIS 11 million
(approx. $3.0 million) in the corresponding period last year. |
|
The
implementation of the strategic business plan, while strengthening the brands and
recording a gradual growth in the Unilever distribution and sales platforms, in
combination with increased exports and continuing cost reductions at the diaper plant
rendered it possible to maintain the trend of improving operating margins while
reducing the operating loss for the eighth consecutive quarter as mentioned above. |
|
The
above information pertaining to the KCTR business plans and their implementation
constitutes forward-looking information as defined in the Securities Law, based on the
companys estimates at the date of this report. These estimates may not materialize
in whole or in part or may materialize in a different manner, inter alia on
account of factors that lie outside the control of the company, such as market conditions,
legislation and various costs. |
7
|
The
new power plant project, intended to supply steam and electricity to the production system
in Hadera and to sell surplus electricity to Israel Electric Company (IEC) and/or to
private consumers, is on hold, awaiting the business stabilization of potential gas
sources in order to conclude the contract to acquire the required gas at a price range
that would allow the Company to be competitive with expected IEC rates. Due to the pending
finalization of the gas purchasing contract as set forth above, it is not possible to
comply with the milestones set forth in the Companys contingent production license.
The Company has elected not to apply for an extension of the license during this holding
phase, and will act to renew the license as progress is made on completion of gas
purchasing for the station. |
|
The
discovery of natural gas deposits at the TAMAR 1 and mainly at the DALIT 1 drill
sites in proximity to Hadera beach and progress in negotiations with the Egyptian
gas franchisee (EMG) are both increasing the likelihood of renewed negotiations and
project kick-off. |
|
The
above information pertaining to trends in the energy sector, based on natural gas,
constitutes forward-looking information as defined in the Securities Law, based on the
companys estimates at the date of this report. These estimates may not materialize
in whole or in part or may materialize in a different manner, inter alia on
account of factors that lie outside the control of the company, such as the size of the
actual gas reservoir, as well as changes in gas prices worldwide. |
B. |
Analysis
of the Companys Financial Situation |
|
Starting
September 1, 2008, the financial statements of Carmel Container Systems Ltd. (Carmel)
and Frenkel- CD Ltd. (Frenkel- C.D.) (an associated company of Carmels
and of the company), are being consolidated within the companys financial
statements, as a result of the fact that the holding rate in Carmel has increased from
36.2% to 89.3%, and at Frenkel CD, indirectly, from 37.93% to 52.72% (for details see
Note 15 to the financial statements as at December 31, 2008). As of January 1, 2009, the
Company has been implementing International Financial Reporting Standard IFRS8: Sectors
of Operation and has consequently identified the packaging products and cardboard
sectors, covering the operations of both Carmel and Frenkel CD as a separate sector (for
further details, see Note 9 to the Financial Statements). The analysis of the financial
statements, as described above, is affected by the implementation of this standard. |
|
|
The
cash and cash equivalents item rose from NIS 7.3 million on March 31, 2008 to NIS 9.4
million on March 31, 2009. |
|
|
The
designated deposits item decreased from NIS 113.3 million on March 31, 2008 to NIS 81.8
million on March 31, 2009. The decrease in deposits served for acquiring equipment and
fixed assets for the Machine-8 project. |
8
|
|
Trade
receivables in the packaging paper and recycling sector decreased from NIS 119.3
million as at March 31, 2008 to NIS 80.3 million as at March 31, 2009. This decrease
is primarily due to lower prices in USD and to a certain quantitative decrease in sales.
In the packaging and cardboard product segment, trade receivables as at March 31, 2009
amounted to NIS 195.9 million. In the office supplies marketing sector, trade receivables
increased from NIS 42.6 million as at March 31, 2008, to NIS 47.7 million as at March 31,
2009 as a result of increased operating volumes. |
|
|
Other
accounts receivable in the packaging paper and recycling sector increased from NIS 95.8
million as at March 31, 2008, to NIS 125.9 million as at March 31, 2009. This increase is
primarily due to an increase in the debt of associated companies in respect of dividends
receivable amounting to NIS 21.0 million. In the packaging and cardboard product segment,
total receivables as at March 31, 2009 amounted to NIS 5.3 million. In the office
supplies marketing sector, other accounts receivable increased from NIS 3.0 million on
March 31, 2008 to NIS 4.8 million on March 31, 2009. |
|
|
Inventories
in the packaging paper and recycling sector increased from NIS 52.1 million as at
March 31, 2008, to NIS 78.0 million as at March 31, 2009. This increase is primarily
due to the aforementioned decrease in sales due to the market slow down, the development
of export markets and preparations for the availability of paper to be shipped overseas.
In the packaging and cardboard products segment, inventories as at March 31, 2009
amounted to NIS 77.0 million. Inventories in the office supplies marketing sector grew
from NIS 16.7 million on March 31, 2008 to NIS 22.2 million on March 31, 2009, primarily
due to the increased share of products imported from Asia-Pacific for improved
profitability, as well as due to acquired inventories in conjunction with the acquisition
of the business operations of Yavne Pitango Ltd. in Northern Israel in early August of
last year, for the purpose of accelerating Company growth. |
|
|
Investments
in associated companies decreased from NIS 341.3 million on March 31, 2008 to NIS 296.4
million on March 31, 2009. This decrease, despite the Companys share in the
earnings of associated companies amounting to NIS 15.6 million, was primarily due to the
Companys share of dividends distributed, amounting to NIS 16.3 million, and the
Companys share of dividends declared, amounting to NIS 20.8 million, by an
associated company which caused a decrease in total investment in the reported
period. |
|
|
Short-term
credit decreased from NIS 83.0 million on March 31, 2008 to NIS 37.7 million on March 31,
2009. This decrease was primarily due to the use of part of the proceeds from the issue
of debenture series in July-August 2008 for the repayment of short-term credit, as well
as to the cash flows from operating activities. |
|
|
Accounts
payable and accruals in the packaging paper and recycling sector increased from NIS 84.2
million as of March 31, 2008 to NIS 92.7 million as of March 31, 2009.
This increase is primarily due to an increase in accrued expenses in respect of interest
on debentures from issuance during the third quarter of last year. Total payables in the
packaging and cardboard product segment as of March 31, 2009 amounted to NIS 18.2
million; other accounts payable in the office supplies marketing sector increased from
NIS 3.6 million as of March 31, 2008 to NIS 4.9 million as of March 31, 2009. |
9
|
|
The
Companys shareholders equity increased from NIS 672.0 million on March 31,
2008 to NIS 783.4 million on March 31, 2009. This change was primarily due to net income
attributable to the Companys shareholders between the periods in the sum of NIS
68.0 million, coupled with a capital reserve credit from transition to consolidation
amounting to NIS 17.3 million, plus minority interest amounting to NIS 25.9 million. |
|
1. |
Investments
in Fixed Assets |
|
Investments
in fixed assets in the reported period amounted to NIS 118.2 million, as compared with
NIS 57.9 million in the corresponding period last year, consisting primarily of payments
on account of purchases from equipment suppliers for the new packaging paper system
(Machine 8), amounting to approximately NIS 103 million. Additional investments included
were related to environmental protection (sewage treatment) and current investments in
equipment renewal, means of transportation and building maintenance at the Hadera site. |
|
Long-term
liabilities (including current maturities) amounted to NIS 740.0 million as at March 31,
2009, as compared with NIS 295.1 million as at March 31, 2008. Long-term liabilities grew
year-over-year, primarily as a result of the issuing of two debenture series (Series 3
and Series 4) in the third quarter last year, in the total sum of NIS 427 million,
coupled with long-term loans assumed intended for financing payments on account of
Machine 8 and the consolidation of the loans of Carmel and Frenkel CD, in the total sum
of NIS 94.6 million. |
|
The
long-term liabilities include primarily four series of debentures and the following
long-term bank loans: |
|
Series
1 NIS 7.4 million, for repayment until 2009. |
|
Series
2 NIS 157.4 million, for repayment until 2013. |
|
Series
3 NIS 189.2 million, for repayment until 2018. |
|
Series
4 NIS 235.6 million, for repayment until 2015. |
|
Long-term
loans NIS 149.3 million. |
|
The
outstanding short-term credit totaled NIS 37.7 million as at March 31, 2009, as compared
with NIS 83.0 million as at March 31, 2008 and NIS 77.7 million as at December 31, 2008. |
|
3. |
Financial
liabilities at fair value through the statement of income |
|
Put
option to the shareholder of an associated company |
|
In
conjunction with the agreement dated November 21, 1999 with Mondi Business Paper
(hereinafter MBP, formerly Neusiedler AG), Mondi Hadera acquired the Groups
fine paper operations and issued 50.1% of its shares to MBP. |
|
As
part of this agreement, MBP was granted the option to sell its holdings in Mondi Hadera
to the Company at a price 20% lower than its value (as defined in the agreement), or $20
million, less 20% the higher of the two. According to verbal understandings that
were reached in proximity to the signing of the agreement, between elements at the
company and elements at MBP, the latter will exercise the option only in the most
exceptional cases, such as those that paralyze production in Israel for long periods of
time. |
10
|
Due
to the extended period of time that has passed since these understandings were reached
and in view of recent changes in the management of MBP, the Company has decided to adopt
a conservative approach in this respect and to reflect the economic value of the option.
The value of the option was calculated according to IFRS and was recognized as a
liability that is measured at fair value, with changes in fair value being allocated to
the statement of income in accordance with IAS 39. |
|
The
difference between the value of the liabilities according to the agreement NIS
54.7 million as compared with the value of the liabilities through fair value
NIS 16.9 million amounts to NIS 37.8 million. |
|
The
liability on account of the Put option on the associated company shares as at March 31,
2009, March 31, 2008, and December 31, 2008, amounts to NIS 16.9 million, NIS 5.0 million
and NIS 13.9 million, respectively. |
|
On
account of the Put option, other expenses grew by NIS 3.0 million in the reported period,
as compared with growth of NIS 1.1 million in the corresponding period last year. |
|
The
principal factors responsible for the change in fair value during the reported period
include the change in the risk-free interest rate and the change in the standard
deviation of the Hadera Paper share that serve for calculating the value of the
option. |
|
Since
the Companys share in the earnings of associated companies constitutes a material
component in the companys statement of income (primarily on account of its share in
the earnings of Mondi Hadera Paper Ltd. [Mondi Hadera] and Hogla-Kimberly Ltd.), before
the presentation of the consolidated data below, we also present the aggregate data which
include the results of all the companies in the Hadera Paper Group (including the
associated companies whose results appear in the financial statements under earnings
from associated companies), without considering the rate of holding therein and net
of mutual sales. |
|
Regarding
the consolidated data, see Section (3) below. |
|
The
aggregate sales amounted to NIS 830.0 million during the reported period, as compared
with NIS 847.6 million in the corresponding period last year, representing decrease of
2.1%. |
|
The
aggregate operating profit totaled NIS 63.9 million during the reported period, as
compared with NIS 59.8 million in the corresponding period last year, representing growth
of 6.9%. The growth in aggregate operating income that was achieved despite the erosion
of prices at some of the companies originates from the improved growth and the profits of
the Groups operations in the marketing of office supplies, the continuing growth
and improved profitability at Hogla-Kimberly in Israel and the continuing trend of
scaling down the operating loss in Turkey, coupled with non-recurring revenues on account
of a unilateral dividend from an associated company. |
11
|
For
the operations in Turkey see Section C7 below Companys share in the
earnings of associated companies. |
|
2. |
The
net profit and the earnings per share attributed to the Companys shareholders |
|
The
net profit attributed to the Companys shareholders in the reported period amounted
to NIS 19.1 million, as compared with net profit of NIS 21.3 million in the corresponding
period last year, representing a decrease of 10.3%. |
|
The
net profit attributable to shareholders of the Company in the reported period was
affected by improved profitability at some Group companies in Israel due to income
recorded from distribution of unilateral dividend in respect of the distribution of
preferred shares by an associated company, that resulted in net revenues to the Company
amounting to approximately NIS 8.4 million. Furthermore, the reduction in the Companys
share of losses from operations in Turkey (KCTR), as compared with the corresponding
period last year (see above for strategic investment in Turkey, as well as section C(7)
below) has also contributed to improved profitability, while net profit decreased due to
the recording of an expenditure amounting to NIS 3.0 million from the valuation of the
Mondi PUT option. |
|
Basic
earnings per share amounted to NIS 3.77 per share ($0.90 per share) in the reported
period, as compared with NIS 4.20 per share ($1.18 per share) in the corresponding period
last year. |
|
Diluted
earnings per share amounted to NIS 3.77 per share ($0.90 per share) in the reported
period, as compared with NIS 4.20 per share ($1.18 per share) in the corresponding period
last year. |
|
3. |
Analysis
of Operations and Profitability |
|
The
analysis set forth below is based on the consolidated data. |
|
Consolidated
sales in the reported period amounted to NIS 229.9 million, as compared with NIS 142.5
million in the corresponding period last year, representing a 61.3% increase which is
primarily due to the consolidation of the data of Carmel and Frenkel CD during the
reported period, amounting to approximately NIS 132.5 million, that had not been
consolidated last year as set forth above. |
|
Sales
of the packaging and recycling sector amounted to NIS 62.6 million in the reported
period, as compared with NIS 109.5 million in the corresponding period last year. |
|
The
decrease in the sales turnover in the packaging paper and recycling sector was due both
to a decrease in packaging and recycling sales due to the erosion of sale prices, which
had not been compensated for by an increase in NIS-denominated prices (segment sales are
impacted by USD-denominated import prices). as well as to a quantitative decrease in
sales, due to the import of packaging paper at dumping prices from Europe, coupled with
the reduced operations of corrugators, in view of the impact on export operations,
primarily due to a non-recurring inventory reduction by corrugators for improvement of
their cash flows from operating activities. |
12
|
The
sales of the packaging product and recycling sector in the reported period amounted to
NIS 130.8 million. |
|
Sales
of the office supplies marketing sector in the reported period amounted to NIS 36.4
million, as compared with NIS 33.0 million in the corresponding period last year,
representing a 10.3% increase due to the continued implementation of the strategic growth
plan in this sector by expansion of the customer base and by the acquisition of companies
in this market. |
|
The
cost of sales amounted to NIS 192.5 million or 83.7% of sales during the
reported period, as compared with NIS 106.0 million or 74.4% of sales in
the corresponding period last year. |
|
The
gross profit totaled NIS 37.4 million during the reported period (16.3% of sales), as
compared with NIS 36.5 million (25.6% of sales) in the corresponding period last year,
representing growth of 2.5% in relation to the corresponding period last year. |
|
The
increase in gross profit in relation to the corresponding period last year was primarily
due to the consolidation of Carmel and Frenkel in the reported period, which had not been
consolidated last year, despite the price erosion in packaging papers due to the market
slow down and the decrease in sales volume, and despite the higher price of electric
power, by 2%, and the higher price of water, by 7%, offset by a reduction in the cost of
paper collection and raw material purchasing. Additionally, the cost of sales included an
amortization of NIS 1.8 million in excess cost, as a result of excess cost recorded from
the acquisition of Carmel and Frenkel CD in 2008. |
|
The
labor wages within the cost of sales amounted to NIS 54.1 million during the reported
period (23.6% of sales), as compared with NIS 30.7 million last year (21.5% of sales). |
|
The
labor wages within the general and administrative expenses amounted to NIS 22.2 million
during the reported period (9.7% of sales), as compared with NIS 17.5 million last year
(12.3% of sales). |
|
The
Increase in salary costs as compared to the corresponding period last year is primarily
attributed to additional salary expenses of NIS 26.7 million resulting from the
consolidation of Carmel and Frenkel CD. |
|
Moreover,
the labor costs include an increase in labor expenses as detailed in Section 3 below, as
a result of expenses derived from the issue of options to executives and the allocation
of the expenses thereupon, at an accrued sum of NIS 1.2 million in the reported period,
an expenditure that does not involve cash flows. |
13
|
As
part of the alignment with the global economic crisis, the Companys management
adopted a policy of mutually-agreed pay cuts for executives. In this capacity, senior
executives and managers have mutually agreed to cut their wages by 8% to 10% in 2009,
while senior employees have agreed that their wages be cut by 5%. The Company further
decided to freeze any raises in employee wages in 2009. |
|
3. |
Selling,
General and Administrative and Other Expenses |
|
The
selling, general and administrative (including wages) and other expenses amounted to NIS
18.9 million in the reported period or 8.2% of sales as compared with NIS
19.1 million or 13.4% of sales in the corresponding period last year.
Excluding revenues from the distribution of unilateral dividend in respect of preferred
shares allocated by an associated company, amounting to NIS 16.4 million, and
non-recurring expenses as set forth below, total Selling, General and Administrative
expenses amounted to NIS 31.1 million. |
|
The
increase in selling, general and administrative and other expenses was primarily
attributed to the consolidation of the expenses of Carmel and Frenkel CD in the Companys
financial statements, in the amount of NIS 13.6 million, along with the recording of
other expenses on account of the valuation of a Mondi PUT option in the sum of NIS 3.0
million, according to IFRS. |
|
The
operating profit totaled NIS 18.5 million during the reported period (8.1% of sales), as
compared with NIS 17.5 million (12.3% of sales) in the corresponding period last year.
The improvement in the operating profit despite the erosion of selling prices of
packaging paper and recycling, originated from an improvement in the profitability of
Graffiti, coupled with the recording of non-recurring revenues of NIS 16.4 million on
account of a unilateral dividend that was offset by a certain slowdown in the operations
of some of the companies as a result of the global crisis and its local influence. |
|
The
operating profit from the paper and recycling activity totaled NIS 15.1 million during
the reported period, as compared with NIS 16.9 million in the corresponding period last
year, primarily as a result of the dumping prices on the part of competing imports,
coupled with the influence of price erosion, as detailed above. Operating profit was also
impacted by recording of a NIS 3.0 million expenditure in respect of a PUT option to an
associated company in the first quarter this year. |
|
Operating
profit for the packaging and cardboard product segment amounted to NIS 3.9 million, while
operating profit for the office supplies segment amounted to NIS 0.9 million, up from NIS
0.6 million in the corresponding period last year. |
14
|
The
financial expenses during the reported period amounted to NIS 4.6 million, as compared
with NIS 6.8 million in the corresponding period last year, representing a decrease of
33.1%. |
|
The
total average of interest bearing liabilities, net, carried to the companys
financial expenses decreased by an average approximately NIS 30 million between the
periods 2008-2009. The decrease was primarily due to positive cash flows from operating
activities between the periods, offset by current investments in fixed assets. |
|
The
interest on the short-term credit decreased by approximately NIS 1.4 million, both as a
result of the decrease in the balance of short-term credit and as a result of the lower
interest rate between the two periods. The interest expenses in respect of CPI-linked
long-term liabilities (debentures) decreased by NIS 2.3 million as compared to the
corresponding period last year, due to the decrease in the balance of debentures
following redemptions made to the holders of the debentures and as a result of the
decrease in the costs of the hedge transactions on the CPI-linked debentures against the
increase in the CPI, which amounted to an annual rate of 0.3% in 2008, as compared to
2.6% in 2007, and as a result of the valuation of the hedge transactions to their fair
value in accordance with international standards. The actual index decreased by
approximately -0.1% in this period. |
|
Moreover,
financial expenses of NIS 0.7 million were recorded, primarily on account of the impact
of the devaluation against the dollar this year in the rate of 10.1%, as compared with a
revaluation of 7.6% last year on the dollar-based asset balances. |
|
Taxes
on income amounted to NIS 10.0 million in the reported period, as compared with NIS 4.0
million in the corresponding period last year. The growth is primarily attributed to the
recording of a provision for taxes on account of events that were included in the
reported period, coupled with the recording of expenses that are not recognized for tax
purposes, such as the valuation of a PUT option at Mondi, as described above. |
|
7. |
Companys
Share in Earnings of Associated Companies |
|
The
companies whose earnings are reported under this item (according to Hadera Papers
holdings therein), include primarily: Mondi Hadera, Hogla-Kimberly. |
|
The
companys share in the earnings of associated companies totaled NIS 15.0 million
during the reported period, as compared with NIS 14.6 million in the corresponding period
last year. |
|
The
following principal changes were recorded in the Companys share in the earnings of
associated companies, in relation to the corresponding period last year: |
|
|
The
Companys share in the net profit of Mondi Hadera Paper (49.9%) decreased by NIS 2.5
million. The decrease in income was primarily due to a decrease in Mondis operating
income, from NIS 9.6 million last year to NIS 5.4 million this year primarily due
to price erosion due to the devaluation of the US dollar. The net profit also decreased
as a result of a slight increase in financial expenses in the reported period in relation
to last year, primarily on account of the impact of the devaluation of the NIS against
the dollar. |
15
|
|
The
companys share in the net profit of Hogla-Kimberly Israel (49.9%) increased by NIS
1.7 million. Hoglas operating income increased from NIS 41.1 million to NIS 47.9
million this year. The improved operating profit originated from a quantitative increase
in sales, improved selling prices in certain areas of operation, the continuing trend of
raising the proportion of some of the premium products out of the products basket, while
innovating products and empowering the Companys brands, the lower prices of some of
the inputs at the Company in light of the erosion of global commodity prices, the
continuing efficiency measures across the company and the savings realized in purchasing
have all contributed to the significant improvement in earnings. |
|
|
The
companys share in the losses of KCTR Turkey (formerly Ovisan) (49.9%) has decreased
by approximately NIS 2.0 million. The significant decrease in the loss is attributed to
the growth in the volumes of operation (see above Strategic Investment in
Turkey) that led to a significant reduction in the operating loss, from NIS 11.0
million last year to NIS 7.9 million this year. Moreover, due to the increase in the
shareholders equity of KCTR through a financial influx from Hogla last year
and during the reported period the bank loans were repaid, while significantly
reducing the financial expenses, thereby leading to an additional reduction in the net
loss. |
|
The
cash flows from operating activities totaled NIS 28.6 million during the reported period,
as compared with NIS 40.4 million in the corresponding period last year. The decrease in
the cash flows from operating activities during the reported period as compared with the
corresponding period last year, originated primarily from the increase in working capital
during the reported period, that amounted to NIS 32.4 million, as compared with a
decrease of NIS 13.5 million last year. The increase in working capital in the reported
period originated primarily from an increase in accounts receivable as a result of the
higher dollar exchange rate during the quarter, that is affecting the selling prices in
NIS especially as regards packaging paper and recycling, coupled with an increase
in inventories at Amnir, that is organizing in terms of the accumulation of inventories
(paper waste for recycling) for the operation of Machine 8 and the growth in inventories
of packaging paper as part of the development of export markets for the output of the new
machine that will be fully operational by 2010. |
|
See
Section B2 Financial liabilities and details in the table below. |
16
F. |
Exposure
and Management of Market Risks |
|
The
Company conducts periodical discussions regarding market risks and exposure to exchange
rate and interest rate fluctuations, with the participation of the relevant factors, so
as to reach decisions in this matter. The individual responsible for the implementation
of market risk management policy at the Company is Israel Eldar, the Companys
Comptroller. |
|
2. |
Market
Risks to which the Company is Exposed |
|
Description
of Market Risks |
|
The
market risks reflect the risk of changes in the value of financial instruments affected
by changes in the interest rate, in the Consumer Price Index and in foreign currency
exchange rates. |
|
Approximately
half of the Companys sales are denominated in US dollars, whereas a significant
share of its expenses and liabilities are in NIS. The Company is therefore exposed to
exchange rate fluctuations of the NIS vis-à-vis the US dollar. This exposure
includes economic exposure (on account of surplus proceeds on payments in foreign
currency or linked thereto) and accounting exposure (on account of a surplus of
dollar-linked assets over foreign-currency-denominated liabilities). |
|
The
Company periodically reexamines the need for hedging on account of this exposure. True to
March 31, 2009, the Company entered into hedging transactions in the sum of 24 million
euro, in order to hedge the cash flows for the acquisition of fixed assets from equipment
vendors for Machine 8. |
|
Consumer
Price Index Risks |
|
The
Company is exposed to changes in the Consumer Price Index, pertaining to the debentures
issued by the Company, in the total sum of NIS 353.9 million. In early 2009, the Company
entered into hedging transactions for a period of one year, to protect itself against a
rise in the CPI, in the amount of NIS 250 million, pursuant to previous transactions that
were made in early 2008 and in August 2008 and terminated at the end of 2008. |
|
The
Company also possesses natural protection due to the current debt of a associated company
that is linked to the CPI. |
|
Most
of the Groups sales are made in Israel to a large number of customers and the
exposure to customer-related credit risks is consequently generally limited. The Group
regularly analyzes through credit committees that operate within the various
companies the quality of the customers, their credit limits and the relevant
collateral required, as the case may be. |
|
The
financial statements include provisions for doubtful debts, based on the existing risks
on the date of the statements. |
17
|
Sensitivity
Analysis Tables for Sensitive Instruments, According to Changes in Market Elementsas at
March 31, 2009: |
Sensitivity to Interest Rates
|
Sensitive Instruments
|
Profit (loss) from changes
|
Fair value
as at
Mar-31-09
|
Profit (loss) from changes
|
|
Interest rise
10%
|
Interest rise
5%
|
Interest decrease
5%
|
Interest decrease
10%
|
|
In NIS thousands
|
|
|
|
|
|
|
Series 1 Debentures |
|
|
| (7 |
) |
| (4 |
) |
| (7,574 |
) |
| 4 |
|
| 7 |
|
Series 2 Debentures | | |
| (1,632 |
) |
| (820 |
) |
| (166,153 |
) |
| 826 |
|
| 1,660 |
|
Series 3 Debentures | | |
| (3,490 |
) |
| (1,757 |
) |
| (201,014 |
) |
| 1,781 |
|
| 3,587 |
|
Series 4 Debentures | | |
| (3,399 |
) |
| (1,708 |
) |
| (267,563 |
) |
| 1,725 |
|
| 3,468 |
|
Fixed-interest loans | | |
| 221 |
|
| 111 |
|
| (20,888 |
) |
| (112 |
) |
| (224 |
) |
Long-term loans and capital | | |
notes - granted | | |
| 192 |
|
| 96 |
|
| 50,167 |
|
| (97 |
) |
| (194 |
) |
|
The
fair value of the loans is based on a calculation of the present value of the cash flows,
according to the generally-accepted interest rate on loans with similar characteristics
(4% in 2009). |
|
Regarding
the terms of the debentures and other liabilities See Note 8 to the annual
financial statements as at December, 31, 2008 |
|
Regarding
long-term loans and capital notes granted See Note 4 to the financial statements as
at December, 31, 2008. |
Sensitivity of -linked instruments to changes in the exchange rate
|
Sensitive Instruments
|
Profit (loss) from changes
|
Fair value as at
Mar-31-09
|
Profit (loss) from changes
|
|
Rise in
10%
|
Rise in
5%
|
Decrease in
5%
|
Decrease in
10%
|
|
In NIS thousands
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
| 92 |
|
| 46 |
|
| 918 |
|
| (46 |
) |
| (92 |
) |
Designated deposits | | |
| 5,363 |
|
| 2,681 |
|
| 53,629 |
|
| (2,681 |
) |
| (5,363 |
) |
Other Accounts Receivable | | |
| 301 |
|
| 151 |
|
| 3,014 |
|
| (151 |
) |
| (301 |
) |
Other Accounts Payable | | |
| (1,745 |
) |
| (873 |
) |
| (17,451 |
) |
| 873 |
|
| 1,745 |
|
NIS- forward transaction | | |
| 21,678 |
|
| 14,990 |
|
| 8,101 |
|
| 1,613 |
|
| (5,075 |
) |
18
Sensitivity to the US Dollar Exchange Rate
|
Sensitive Instruments
|
Profit (loss) from changes
|
Fair value
as at
Mar-31-09
|
Profit (loss) from changes
|
|
Revaluation of $
10%
|
Revaluation of $
5%
|
Devaluation of $
5%
|
Devaluation of $
10%
|
|
In NIS thousands
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
| 341 |
|
| 171 |
|
| 3,412 |
|
| (171 |
) |
| (341 |
) |
Other Accounts Receivable | | |
| 1,288 |
|
| 644 |
|
| 12,880 |
|
| (644 |
) |
| (1,288 |
) |
Other Accounts Payable | | |
| (2,848 |
) |
| (1,424 |
) |
| (28,481 |
) |
| 1,424 |
|
| 2,848 |
|
Liabilities at fair value | | |
through the statement of income | | |
| (1,690 |
) |
| (845 |
) |
| (16,903 |
) |
| 845 |
|
| 1,690 |
|
Other accounts receivable reflect
primarily short-term customer debts. Capital note See Note 4d to the annual
financial statements as at December, 31, 2008.
Accounts payable reflect primarily
short-term liabilities to suppliers.
19
|
Following
below are the balance sheet items, according to linkage bases, as at March 31, 2009: |
In NIS Millions
|
Unlinked
|
CPI-linked
|
In foreign currency, or linked thereto (primarily US$)
|
-linked
|
Non-Monetary Items
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| | |
Cash and cash equivalents | | |
| 5.1 |
|
| |
|
| 3.4 |
|
| 0.9 |
|
| |
|
| 9.4 |
|
Short-term deposits and investments | | |
| 28.1 |
|
| |
|
| |
|
| 53.6 |
|
| |
|
| 81.7 |
|
Other Accounts Receivable | | |
| 436.9 |
|
| 0.9 |
|
| 14.2 |
|
| 3.0 |
|
| 4.9 |
|
| 459.9 |
|
Inventories | | |
| |
|
| |
|
| |
|
| |
|
| 177.2 |
|
| 177.2 |
|
Investments in Associated Companies | | |
| 53.6 |
|
| |
|
| |
|
| |
|
| 242.8 |
|
| 296.4 |
|
Deferred taxes on income | | |
| |
|
| |
|
| |
|
| |
|
| 31.1 |
|
| 31.1 |
|
Fixed assets, net | | |
| |
|
| |
|
| |
|
| |
|
| 860.9 |
|
| 860.9 |
|
Intangible Assets | | |
| |
|
| |
|
| |
|
| |
|
| 30.1 |
|
| 30.1 |
|
Land under lease | | |
| |
|
| |
|
| |
|
| |
|
| 38.4 |
|
| 38.4 |
|
Other assets | | |
| |
|
| |
|
| |
|
| |
|
| 2.5 |
|
| 2.5 |
|
Assets on account of employee benefits | | |
| 0.7 |
|
| |
|
| |
|
| |
|
| |
|
| 0.7 |
|
Total Assets | | |
| 524.4 |
|
| 0.9 |
|
| 17.6 |
|
| 57.5 |
|
| 1,387.9 |
|
| 1,988.3 |
|
|
| |
| |
| |
| |
| |
| |
| | |
Liabilities | | |
Short-term credit from banks | | |
| 37.7 |
|
| |
|
| |
|
| |
|
| |
|
| 37.7 |
|
Other Accounts Payable | | |
| 241.0 |
|
| |
|
| 32.2 |
|
| 17.5 |
|
| |
|
| 290.7 |
|
Current tax liability | | |
| 4.3 |
|
| |
|
| |
|
| |
|
| |
|
| 4.3 |
|
Deferred taxes on income | | |
| |
|
| |
|
| |
|
| |
|
| 78.3 |
|
| 78.3 |
|
Long-Term Loans | | |
| 117.3 |
|
| 32.0 |
|
| |
|
| |
|
| |
|
| 149.3 |
|
Notes (debentures) - including current maturities | | |
| 238.4 |
|
| 352.2 |
|
| |
|
| |
|
| |
|
| 590.6 |
|
Liabilities on account of employee benefits | | |
| 37.1 |
|
| |
|
| |
|
| |
|
| |
|
| 37.1 |
|
Liabilities at fair value through the statement of | | |
income | | |
| |
|
| |
|
| 16.9 |
|
| |
|
| |
|
| 16.9 |
|
Shareholders' equity, reserves and retained earnings | | |
| |
|
| |
|
| |
|
| |
|
| 783.4 |
|
| 783.4 |
|
Total liabilities and equity | | |
| 675.8 |
|
| 384.2 |
|
| 49.1 |
|
| 17.5 |
|
| 861.7 |
|
| 1,988.3 |
|
|
| |
| |
| |
| |
| |
| |
| | |
Surplus financial assets (liabilities) as at Mar-31-09 | | |
| (151.4 |
) |
| (383.3 |
) |
| (31.5 |
) |
| 40.0 |
|
| 526.2 |
|
| |
|
| | |
Surplus financial assets (liabilities) as at Dec-31-2008 | | |
| (157.4 |
) |
| (389.0 |
) |
| (12.6 |
) |
| 107.6 |
|
| 471.4 |
|
| |
|
|
* |
As
to hedging transactions associated with surplus CPI-linked liabilities, see Section F(2),
above. |
|
Hadera
Paper is exposed to various risks associated with operations in Turkey, where
Hogla-Kimberly is active through its subsidiary, KCTR. These risks originate from concerns
regarding economic and political instability, high devaluation and elevated inflation
rates that have characterized the Turkish economy in the past and that may recur and harm
the KCTR operations. |
20
G. |
Forward-Looking
Statements |
|
This
report contains various forecasts that constitute forward-looking statements, as defined
in the Securities Law, based upon the Board of Directors present expectations and
estimates regarding the operations of the Group and its business environment. The Company
does not guarantee that the future results of operations will coincide with the
forward-looking statements and these may in fact differ considerably from the present
forecasts as a result of factors that may change in the future, such as changes in costs
and market conditions, failure to achieve projected goals, failure to achieve anticipated
efficiencies and other factors which lie outside the control of the Company. The Company
undertakes no obligation to publicly update such forward-looking statements, regardless
of whether these updates originate from new information, future events or any other
reason. |
H. |
Detailed
processes undertaken by the companys supreme supervisors, prior to
the approval of the financial statements |
|
The
Companys Board of Directors has appointed the Companys Audit Committee to
serve as a Balance Sheet Committee and to supervise the completeness of the financial
statements and the work of the CPAs and to offer recommendations regarding the approval
of the financial statements and the discussion thereof prior to said approval. The
Committee consists of three directors, of which two possess accounting and financial
expertise. The meetings of the Balance Sheet Committee, as well as the board meetings
during which the financial statements are discussed and approved, are attended by the
companys auditing CPAs, who are instructed to present the principal findings if
there are any that surfaced during the audit or review process, as well as by the
Internal Auditor. |
|
The
Committee conducts its examination via detailed presentations from company executives and
others, including: General Manager Avi Brener, and CFO Shaul Glicksberg.
The material issues in the financial reports, including any extraordinary transactions
if any, the material assessments and critical estimates implemented in the
financial statements, the reasonability of the data, the financial policy implemented and
the changes therein, as well as the implementation of proper disclosure in the financial
statements and the accompanying information. The Committee examines various aspects of
risk assessment and control, as reflected in the financial statements (such as reporting
of financial risks), as well as those affecting the reliability of the financial
statements. In case necessary, the Committee demands to receive comprehensive reviews of
matters with especially relevant impact, such as the implementation of international
standards. |
|
The
approval of the financial statements involves several meetings, as necessary: The first
is held by the Audit Committee to discuss the material reporting issues in depth and at
great length, whereas the second is held by the Board of Directors to discuss the actual
results. Both meetings are held in proximity to the approval date of the financial
statements. As to the supreme supervision regarding the impact of the transition to
international financial reporting standards, the Committee held a detailed discussion
regarding the said disclosure and the accounting policy implemented in its respect. |
Zvika Livnat Chairman of the Board of Directors |
|
Avi Brener General Manager |
21
Exhibit 3
HADERA PAPER LTD
UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS OF MARCH 31, 2009
HADERA PAPER LTD
UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS OF MARCH 31, 2009
TABLE OF CONTENTS
F - 1
HADERA PAPER LTD
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(NIS in thousands)
|
|
March 31
|
December 31
|
|
Note
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
| |
|
| |
|
| |
|
| |
|
Cash and cash equivalents | | |
| |
|
| 9,435 |
|
| 7,330 |
|
| 13,128 |
|
Designated deposits | | |
| |
|
| 81,769 |
|
| 113,314 |
|
| 249,599 |
|
Accounts receivable: | | |
Trade receivables | | |
| |
|
| 323,869 |
|
| 161,880 |
|
| 318,926 |
|
Other receivables | | |
| |
|
| 136,019 |
|
| 98,754 |
|
| 100,888 |
|
Current tax assets | | |
| |
|
| - |
|
| 392 |
|
| 6,271 |
|
Inventories | | |
| |
|
| 177,160 |
|
| 68,847 |
|
| 168,755 |
|
|
|
| |
| |
| |
| | |
| |
|
| 728,252 |
|
| 450,517 |
|
| 857,567 |
|
|
|
| |
| |
| |
Non-Current Assets | | |
Property plant and equipment, net | | |
| |
|
| 860,904 |
|
| 461,653 |
|
| 767,542 |
|
Investments in associated companies | | |
| |
|
| 296,399 |
|
| 341,302 |
|
| 318,101 |
|
Deferred tax assets | | |
| |
|
| 31,110 |
|
| 20,833 |
|
| 29,848 |
|
Deferred expenses | | |
| |
|
| 38,380 |
|
| 30,232 |
|
| 36,344 |
|
Other intangible assets | | |
| |
|
| 30,061 |
|
| 1,409 |
|
| 31,519 |
|
Other assets | | |
| |
|
| 2,549 |
|
| - |
|
| 2,549 |
|
Employee benefit assets | | |
| |
|
| 675 |
|
| * 616 |
|
| 624 |
|
|
|
| |
| |
| |
| | |
| |
|
| 1,260,078 |
|
| 856,045 |
|
| 1,186,527 |
|
|
|
| |
| |
| |
| | |
| |
|
| 1,988,330 |
|
| 1,306,562 |
|
| 2,044,094 |
|
|
|
| |
| |
| |
Current Liabilities | | |
Credit from banks and others | | |
| |
|
| 37,735 |
|
| 82,973 |
|
| 77,655 |
|
Current maturities of long-term notes and long term loans | | |
| |
|
| 76,381 |
|
| 49,964 |
|
| 76,469 |
|
Trade payables | | |
| |
|
| 174,834 |
|
| 99,117 |
|
| 195,020 |
|
Other payables and accrued expenses | | |
| |
|
| 115,841 |
|
| * 87,842 |
|
| * 104,943 |
|
Short term employee benefit liabilities | | |
| |
|
| 20,595 |
|
| * 11,851 |
|
| * 17,478 |
|
Other financial liabilities | | |
| |
|
| - |
|
| 31,600 |
|
| 32,770 |
|
Financial liabilities at fair value through profit and loss | | |
| 4 |
|
| 16,903 |
|
| 4,960 |
|
| 13,904 |
|
Current tax liabilities | | |
| |
|
| 4,325 |
|
| - |
|
| - |
|
|
|
| |
| |
| |
| | |
| |
|
| 446,614 |
|
| 368,307 |
|
| 518,239 |
|
|
|
| |
| |
| |
Non-Current Liabilities | | |
Loans from banks and others | | |
| |
|
| 111,779 |
|
| 54,755 |
|
| 121,910 |
|
Notes | | |
| |
|
| 551,791 |
|
| 158,797 |
|
| 554,124 |
|
Deferred tax liabilities | | |
| |
|
| 78,316 |
|
| 42,086 |
|
| 76,641 |
|
Employee benefit liabilities | | |
| |
|
| 16,470 |
|
| * 10,573 |
|
| * 15,551 |
|
|
|
| |
| |
| |
| | |
| |
|
| 758,356 |
|
| 266,211 |
|
| 768,226 |
|
|
|
| |
| |
| |
Capital and reserves | | |
Issued capital | | |
| |
|
| 125,267 |
|
| 125,267 |
|
| 125,267 |
|
Reserves | | |
| |
|
| 306,383 |
|
| 289,070 |
|
| 299,949 |
|
Retained earnings | | |
| |
|
| 325,812 |
|
| 257,707 |
|
| 306,097 |
|
|
|
| |
| |
| |
capital and reserves attributed to shareholders | | |
| |
|
| 757,462 |
|
| 672,044 |
|
| 731,313 |
|
Minority Interests | | |
| |
|
| 25,898 |
|
| - |
|
| 26,316 |
|
|
|
| |
| |
| |
Total capital and reserves | | |
| |
|
| 783,360 |
|
| 672,044 |
|
| 757,629 |
|
|
|
| |
| |
| |
| | |
| |
|
| 1,988,330 |
|
| 1,306,562 |
|
| 2,044,094 |
|
|
|
| |
| |
| |
|
|
|
|
|
* Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Z. Livnat |
A. Brener |
S. Gliksberg |
Chairman of the Board of Directors |
Chief Executive Officer |
Chief Financial and Business |
|
|
Development Officer |
|
|
|
Approval date of the interim
financial statements: May 10, 2009.
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
F - 2
HADERA PAPER LTD
CONDENSED CONSOLIDATED INCOME STATEMENTS
(NIS in thousands)
|
Note
|
Three months ended
March 31
|
Year ended
December 31
|
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
| |
|
| 229,881 |
|
| 142,519 |
|
| 673,484 |
|
Cost of sales | | |
| |
|
| 192,510 |
|
| 105,979 |
|
| 542,387 |
|
|
|
| |
| |
| |
Gross profit | | |
| |
|
| 37,371 |
|
| 36,540 |
|
| 131,097 |
|
|
|
| |
| |
| |
| | |
Selling and marketing expenses | | |
| |
|
| 18,016 |
|
| 7,888 |
|
| 45,674 |
|
| | |
General and administrative expenses | | |
| |
|
| 14,231 |
|
| 10,124 |
|
| 54,970 |
|
| | |
Other (income) expenses, net | | |
| 7 |
|
| (13,388 |
) |
| 1,067 |
|
| (4,898 |
) |
|
|
| |
| |
| |
Total expenses | | |
| |
|
| 18,859 |
|
| 19,079 |
|
| 95,746 |
|
|
|
| |
| |
| |
| | |
Profit from ordinary operations | | |
| |
|
| 18,512 |
|
| 17,461 |
|
| 35,351 |
|
|
|
| |
| |
| |
| | |
Finance income | | |
| |
|
| 3,031 |
|
| 1,894 |
|
| 12,069 |
|
Finance expenses | | |
| |
|
| 7,581 |
|
| 8,701 |
|
| 27,112 |
|
|
|
| |
| |
| |
| | |
Finance expenses, net | | |
| |
|
| 4,550 |
|
| 6,807 |
|
| 15,043 |
|
|
|
| |
| |
| |
Profit after financial expenses | | |
| |
|
| 13,962 |
|
| 10,654 |
|
| 20,308 |
|
| | |
Share in profit of associated companies, net | | |
| |
|
| 15,048 |
|
| 14,633 |
|
| 51,315 |
|
|
|
| |
| |
| |
Profit before taxes on income | | |
| |
|
| 29,010 |
|
| 25,287 |
|
| 71,623 |
|
| | |
Taxes on income | | |
| 8 |
|
| 9,954 |
|
| 4,017 |
|
| 3,663 |
|
|
|
| |
| |
| |
Profit for the period | | |
| |
|
| 19,056 |
|
| 21,270 |
|
| 67,960 |
|
| | |
Attributed to: | | |
Company shareholders | | |
| |
|
| 19,079 |
|
| 21,270 |
|
| 69,710 |
|
Minority interests | | |
| |
|
| (23 |
) |
| - |
|
| (1,750 |
) |
|
|
| |
| |
| |
| | |
| |
|
| 19,056 |
|
| 21,720 |
|
| 67,960 |
|
|
|
| |
| |
| |
| | |
Earning for share: | | |
Primary attributed to Company shareholders | | |
| |
|
| 3.77 |
|
| 4.20 |
|
| 13.77 |
|
|
|
| |
| |
| |
| | |
Fully diluted attributed to company shareholders | | |
| |
|
| 3.77 |
|
| 4.20 |
|
| 13.77 |
|
|
|
| |
| |
| |
| | |
Number of share used to compute the primary earnings per share | | |
| |
|
| 5,060,774 |
|
| 5,060,774 |
|
| 5,060,774 |
|
|
|
| |
| |
| |
| | |
Number of share used to compute the fully diluted earnings per share | | |
| |
|
| 5,060,774 |
|
| 5,063,560 |
|
| 5,060,774 |
|
|
|
| |
| |
| |
|
|
|
|
|
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
F - 3
HADERA PAPER LTD
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
(NIS in thousands)
|
Three months ended
|
Year ended
|
|
March 31
|
December 31
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
(Unaudited)
|
|
|
|
|
|
Comprehensive Income |
|
|
| 19,056 |
|
| 21,270 |
|
| 67,960 |
|
|
| |
| |
| |
| | |
Other Comprehensive Income | | |
Profit (loss) on cash flow hedges, net | | |
| 5,426 |
|
| - |
|
| (2,306 |
) |
Actuarial profit (loss) and defined benefit plans, net | | |
| 225 |
|
| - |
|
| (1,501 |
) |
Reevaluation from step acquisition | | |
| - |
|
| - |
|
| 17,288 |
|
Share in Other Comprehensive Income of associated companies, net | | |
| (188 |
) |
| (19,920 |
) |
| (28,094 |
) |
|
| |
| |
| |
Total Other Comprehensive Income for the period, net | | |
| 5,463 |
|
| (19,920 |
) |
| (14,613 |
) |
|
| |
| |
| |
| | |
Total Comprehensive Income for the period | | |
| 24,519 |
|
| 1,350 |
|
| 53,347 |
|
|
| |
| |
| |
| | |
Attributed to: | | |
Company shareholders | | |
| 24,489 |
|
| 1,350 |
|
| 55,115 |
|
Minority interests | | |
| 30 |
|
| - |
|
| (1,768 |
) |
|
| |
| |
| |
| | |
| 24,519 |
|
| 1,350 |
|
| 53,347 |
|
|
| |
| |
| |
|
|
|
|
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
F - 4
HADERA PAPER LTD
CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(NIS in thousands)
|
Share
capital
|
Capital
reserves
|
Share based
payments
reserves
|
Capital reserves
resulting from tax
benefit on exercise of
employee options
|
Capital
reserve from
revaluation
from step
acquisition
|
Hedging
reserves
|
Foreign
currency
translation
reserves
|
Retained
earnings
|
Total for
Company
shareholders
|
Minority
Interests
|
Total
|
|
NIS in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
March 31, 2009 (unaudited) | | |
| | |
Balance - January 1, 2009 | | |
| 125,267 |
|
| 301,695 |
|
| 6,227 |
|
| 3,397 |
|
| 15,908 |
|
| (5,092 |
) |
| (22,186 |
) |
| 306,097 |
|
| 731,313 |
|
| 26,316 |
|
| 757,629 |
|
Total Comprehensive Income for the period | | |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 5,953 |
|
| (744 |
) |
| 19,280 |
|
| 24,489 |
|
| 30 |
|
| 24,519 |
|
Purchasing shares of subsidiary company | | |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (448 |
) |
| (448 |
) |
Depreciation of capital from | | |
revaluation from step acquisition to | | |
retained earnings | | |
| - |
|
| - |
|
| - |
|
| - |
|
| (435 |
) |
| - |
|
| - |
|
| 435 |
|
| - |
|
| - |
|
| - |
|
Share based payment | | |
| - |
|
| - |
|
| 1,660 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 1,660 |
|
| - |
|
| 1,660 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Balance - March 31, 2009 | | |
| 125,267 |
|
| 301,695 |
|
| 7,887 |
|
| 3,397 |
|
| 15,473 |
|
| 861 |
|
| (22,930 |
) |
| 325,812 |
|
| 757,462 |
|
| 25,898 |
|
| 783,360 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
F - 5
HADERA PAPER LTD
CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(NIS in thousands)
|
Share
capital
|
Capital
reserves
|
Share based
payments
reserves
|
Capital reserves
resulting from tax
benefit on exercise of
employee options
|
Hedging
reserves
|
Foreign
currency
translation
reserves
|
Retained
earnings
|
Total for
Company
shareholders
|
Total
|
|
NIS in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
March 31, 2008 (unaudited) | | |
| | |
Balance - January 1, 2008 | | |
| 125,267 |
|
| 301,695 |
|
| - |
|
| 3,397 |
|
| (635 |
) |
| 3,810 |
|
| 236,437 |
|
| 669,971 |
|
| 669,971 |
|
Total Comprehensive Income for the period | | |
| - |
|
| - |
|
| - |
|
| - |
|
| 88 |
|
| (20,008 |
) |
| 21,270 |
|
| 1,350 |
|
| 1,350 |
|
Exercise of employee option into shares | | |
| - |
|
| - |
|
| 723 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 723 |
|
| 723 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
Balance - March 31, 2008 | | |
| 125,267 |
|
| 301,695 |
|
| 723 |
|
| 3,397 |
|
| (547 |
) |
| (16,198 |
) |
| 257,707 |
|
| 672,044 |
|
| 672,044 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
F - 6
HADERA PAPER LTD
CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(NIS in thousands)
|
Share
capital
|
Capital
reserves
|
Share based
payments
reserves
|
Capital reserves
resulting from tax
benefit on
exercise of
employee options
|
Capital
reserve from
revaluation
from step
acquisition
|
Hedging
reserves
|
Foreign
currency
translation
reserves
|
Retained
earnings
|
Total for
Company
shareholders
|
Minority
Interests
|
Total
|
|
NIS in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
December 31, 2008 | | |
| | |
Balance - January 1, 2008 | | |
| 125,267 |
|
| 301,695 |
|
| - |
|
| 3,397 |
|
| - |
|
| (635 |
) |
| 3,810 |
|
| 236,437 |
|
| 669,971 |
|
| - |
|
| 669,971 |
|
Total Comprehensive Income for the year | | |
| - |
|
| - |
|
| - |
|
| - |
|
| 17,288 |
|
| (4,457 |
) |
| (25,996 |
) |
| 68,280 |
|
| 55,115 |
|
| (1,768 |
) |
| 53,347 |
|
First transfer to consolidation - | | |
create minority interests | | |
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 28,084 |
|
| 28,084 |
|
Depreciation of capital from revaluation | | |
from step acquisition to retained | | |
earnings | | |
| - |
|
| - |
|
| - |
|
| - |
|
| (1,380 |
) |
| - |
|
| - |
|
| 1,380 |
|
| - |
|
| - |
|
| - |
|
Share based payment | | |
| - |
|
| - |
|
| 6,227 |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 6,227 |
|
| - |
|
| 6,227 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Balance - December 31, 2008 | | |
| 125,267 |
|
| 301,695 |
|
| 6,227 |
|
| 3,397 |
|
| 15,908 |
|
| (5,092 |
) |
| (22,186 |
) |
| 306,097 |
|
| 731,313 |
|
| 26,316 |
|
| 757,629 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
F - 7
HADERA PAPER LTD
CONDENSED CONSOLIDATED STATMENTS OF CASH FLOWS
(NIS in thousands)
|
Three months ended
March 31
|
Year ended
December 31
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash flows - operating activities |
|
|
| |
|
| |
|
| |
|
Operating profit for the period | | |
| 19,056 |
|
| 21,270 |
|
| 67,960 |
|
Taxes on income recognized in profit and loss | | |
| 9,954 |
|
| 4,017 |
|
| 3,663 |
|
Finance expenses recognized in profit and loss | | |
| 4,550 |
|
| 6,807 |
|
| 15,043 |
|
Capital loss on disposal of property, plant and equipment | | |
| 29 |
|
| (8 |
) |
| (284 |
) |
Share in profit of associated companies | | |
| (15,048 |
) |
| (14,633 |
) |
| (51,315 |
) |
Dividend received from associated company | | |
| 16,352 |
|
| - |
|
| - |
|
Depreciation and amortization | | |
| 19,539 |
|
| 11,084 |
|
| 59,784 |
|
Share based payments expense | | |
| 1,222 |
|
| 722 |
|
| 4,913 |
|
Gain from negative goodwill | | |
| - |
|
| - |
|
| (14,664 |
) |
|
| |
| |
| |
| | |
| 55,654 |
|
| 29,259 |
|
| 85,100 |
|
|
| |
| |
| |
| | |
Changes in assets and liabilities: | | |
Decrease (Increase) in trade and other receivables | | |
| (11,265 |
) |
| 12,334 |
|
| 66,805 |
|
Decrease (Increase) in inventories | | |
| (8,405 |
) |
| 760 |
|
| (19,868 |
) |
Decrease in trade payables and other payables | | |
| (12,745 |
) |
| * 466 |
|
| * (16,923 |
) |
Increase in financial liabilities at fair value through profit and loss | | |
| 2,999 |
|
| 1,059 |
|
| 10,003 |
|
Increase (Decrease) in employee benefit liabilities | | |
| 4,209 |
|
| * 304 |
|
| * (3,063 |
) |
|
| |
| |
| |
| | |
| (25,207 |
) |
| 14,923 |
|
| 36,954 |
|
|
| |
| |
| |
| | |
Tax Payments | | |
| (1,827 |
) |
| (3,744 |
) |
| (8,182 |
) |
|
| |
| |
| |
| | |
Net cash generated by operating activities | | |
| 28,620 |
|
| 40,438 |
|
| 113,872 |
|
|
| |
| |
| |
|
|
|
|
* Reclassified
The accompanying notes are an
integral part of the condensed consolidated financial statements.
F - 8
HADERA PAPER LTD
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(NIS in thousands)
|
|
Three months ended
March 31
|
Year ended
December 31
|
|
Note
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows - investing activities |
|
|
| |
|
| |
|
| |
|
| |
|
Acquisition of property plant and equipment | | |
| 5 |
|
| (118,195 |
) |
| (57,985 |
) |
| (230,053 |
) |
Acquisition of subsidiaries | | |
| |
|
| - |
|
| - |
|
| (70,567 |
) |
Proceeds from disposal of Property | | |
plant and equipment | | |
| |
|
| 150 |
|
| 145 |
|
| 825 |
|
Decrease (Increase) in designated deposits, net | | |
| |
|
| 171,277 |
|
| (113,314 |
) |
| (255,244 |
) |
Interest received | | |
| |
|
| 1,009 |
|
| 205 |
|
| 7,764 |
|
Prepaid leasing expenses | | |
| |
|
| (2,318 |
) |
| (1,169 |
) |
| (2,622 |
) |
Acquisition of other assets | | |
| |
|
| |
|
| |
|
| (2,770 |
) |
Associated companies: | | |
Granting of loans | | |
| |
|
| (510 |
) |
| - |
|
| (422 |
) |
Collection of loans | | |
| |
|
| - |
|
| - |
|
| 2,851 |
|
|
|
| |
| |
| |
Net cash generated by (used in) investing activities | | |
| |
|
| 51,413 |
|
| (172,118 |
) |
| (550,238 |
) |
|
|
| |
| |
| |
| | |
Cash flows - financing activities | | |
Proceeds from issuing notes | | |
| |
|
| - |
|
| - |
|
| 424,617 |
|
Short-term bank credit - net | | |
| |
|
| (39,920 |
) |
| (60,042 |
) |
| (111,444 |
) |
Borrowings received from banks | | |
| |
|
| - |
|
| 35,000 |
|
| 39,448 |
|
Repayment of borrowings from banks | | |
| |
|
| (9,601 |
) |
| (1,330 |
) |
| (11,801 |
) |
Repayment of capital note | | |
| |
|
| (32,770 |
) |
| - |
|
| - |
|
Interest Paid | | |
| |
|
| (1,866 |
) |
| (2,177 |
) |
| (20,360 |
) |
Redemption of notes | | |
| |
|
| - |
|
| - |
|
| (38,904 |
) |
|
|
| |
| |
| |
Net cash generated by (used in) financing activities | | |
| |
|
| (84,157 |
) |
| (28,549 |
) |
| 281,556 |
|
|
|
| |
| |
| |
| | |
Decrease in cash and cash equivalents | | |
| |
|
| (4,124 |
) |
| (160,229 |
) |
| (154,810 |
) |
Cash and cash equivalents - beginning of period | | |
| |
|
| 13,128 |
|
| 167,745 |
|
| 167,745 |
|
Net foreign exchange difference | | |
| |
|
| 431 |
|
| (186 |
) |
| 193 |
|
|
|
| |
| |
| |
Cash and cash equivalents - end of period | | |
| |
|
| 9,435 |
|
| 7,330 |
|
| 13,128 |
|
|
|
| |
| |
| |
|
|
|
|
|
The accompanying notes are an integral
part of the condensed consolidated financial statements.
F - 9
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 1 |
|
DESCRIPTION OF BUSINESS AND GENERAL |
|
A. |
Description
Of Business |
|
Hadera
Paper Limited (former American Israeli Paper Mills Limited) and its subsidiaries
(hereafter the Company) are engaged in the production and sale of paper packaging,
in paper recycling activities and in the marketing of office supplies. The Company also
has holdings in associated companies that are engaged in the productions and sale of
paper and paper products including the handling of solid waste (the Company and its
investee companies hereafter the Group). Most of the Groups sales are
made on the local (Israeli) market. For segment information, see note 9. |
|
B. |
For
further information read these concise reports in connection with the
companys annual financial statements as of December 31, 2008 and the
year then ended, and the accompanying notes. |
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
The
consolidated concise financial statements (hereinafter interim financial
statements) of the Group were prepared in accordance with IAS 34 Financial
Reporting for Interim Periods (hereinafter IAS 34). |
|
In
the preparation of these interim financial statements the Group applied identical
accounting policy, presentation rules and calculation methods to those that were applied
in the preparation of its financial statements as of December 31, 2008 and the year then
ended, except for changes in the accounting policy that arose from the implementation of
standards, amendment to standards and new interpretations that became effective on the
date of the financial statements as specified in section c below. |
|
B. |
The
consolidated concise financial statements were prepared in accordance with
the provisions of Section D of the Securities Regulations (Periodic and
Immediate Reports), 1970. |
|
C. |
Standards,
amendments to standards and new interpretations that are in effect, which
were applied in these financial statements |
|
IFRS
8, Operating Segments |
|
The
standard, which replaces IAS 14, details how an entity must report on data according to
segments in the annual financial statements. The standard, among other things, stipulates
that segmental reporting of the company will be based on the information that management
of the company uses for purposes of evaluating performance of the segments, and for
purposes of allocating resources to the various operating segments. The standard applies
to annual reporting periods commencing on January 1, 2009, with restatement of
comparative figures for prior reporting periods. |
|
As
for the reporting of the Companys operating segments in accordance with the
provisions of IFRS8, including the retroactive restatement of data, see note 9. |
F - 10
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
C. |
Standards,
amendments to standards and new interpretations that are in effect, which
were applied in these financial statements (cont.) |
|
IAS
1 (Amended) Presentation of Financial Statements |
|
The
standard stipulates the presentation required in the financial statements, and itemizes a
general framework for the structure of the financial statements and the minimal contents
which must be included in the context of the report. Changes have been made to the
existing presentation format of the financial statements, and the presentation and
disclosure requirements for the financial statements have been broadened, including the
presentation of an additional report in the framework of the financial statements known
as the report of comprehensive income, and the addition of a balance sheet as
of the beginning of the earliest period that was presented in the financial statements,
in cases of changes in accounting policy by means of retroactive implementation, in cases
of restatement and in cases of reclassifications. |
|
The
standard applies, by way of retroactive implementation, to reporting periods commencing
on January 1, 2009. Pursuant to the provisions of the standard the Group published a
report on the totals of segment profit, which specifies the components of the total
profit separately from the components presented in the statement of income, as well as a
statement of changes in shareholders equity, which presents balances in respect of
transactions with shareholders, as part of their duty as shareholders. The first-time
implementation of the standard does not have any impact on the reported results of
operation and the financial situation of the Group. |
|
IAS
23 (Amended) Borrowing Costs |
|
The
standard stipulates the accounting treatment of borrowing costs. In the context of the
amendment to this standard, the possibility of immediately recognizing borrowing costs
related to assets with an uncommon period of eligibility or construction in the statement
of operations was cancelled. The standard apply to borrowing costs that relate to
eligible assets as to which the capitalization period began from January 1, 2009 or
earlier, as defined by the Group. |
|
The
implementation of the Standard does not expect to have effect on the Groups
financial statements. |
|
IFRIC
16 Hedges of a Net Investment in a Foreign Operation |
|
This
interpretation establishes the nature of the hedged risk and the amount of the hedged
item under the hedges of a net investment in a foreign operation. In addition, the
interpretation stipulates that the hedging instrument may be held by any entity within
the group, and the amount to be reclassified from equity to profit or loss when the
entity disposes of the foreign operation, for which the accounting method of hedges of a
net investment in a foreign operation has been implemented. |
|
The
provisions of the interpretation apply, by way of prospective implementation, to annual
reporting periods that commence on January 1, 2009. |
|
The
implementation of the interpretation does not expect to have effect on the Groups
financial statements. |
F - 11
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
C. |
Standards,
amendments to standards and new interpretations that are in effect, which
were applied in these financial statements (cont.) |
|
Amendment
to IFRS 2, Share Based Payment- Vesting and Revocation Conditions |
|
The
amendment to the standard stipulates the conditions under which the measurement of fair
value must be considered on the date of the grant of a share based payment and explains
the accounting treatment of instruments without terms of vesting and revocation. |
|
The
provisions of the amendment apply by way of retroactive implementation. |
|
The
provisions of the amendment apply by way of retroactive implementation, to annual
reporting periods that commence on January 1, 2009. |
|
The
implementation of the Amendment Standard does not expect to have effect on the Groups
financial statements. |
|
Amendment
to IAS 32, Financial Instruments: Presentation, and IAS 1, Presentation of
Financial Statements |
|
The
amendment to IAS 32 changes the definition of a financial liability, financial asset and
capital instrument and determines that certain financial instruments, which are
exercisable by their holder, will be classified as capital instruments. |
|
The
provisions of the standard apply to annual financial reporting periods which start on
January 1, 2009 and thereafter. |
|
The
implementation of the Amendment Standard does not expect to have effect on the Groups
financial statements. |
|
Amendment
to IFRS 7 Financial Instruments: Disclosure |
|
The
amendment expands the required disclosures regarding liquidity risk and measurement of
fair value, while setting a three-level scale for the presentation of fair-value
measurements. |
|
The
provisions of the standard apply to annual financial reporting periods which start on
January 1, 2009 and thereafter. The provisions of the amendment apply by way of
retroactive implementation. |
|
The
implementation of the standard does not have any impact on the reported results of
operation and the financial situation of the Group. |
|
Improvement
to International Financial Reporting Standards (IFRS) 2008 |
|
In
May 2008 the IASB published a series of improvements for IFRS: |
|
Improvements
include amendments to some of the standards, which change the manner of presentation,
recognition and measurement of different items in the financial statements. |
|
In
addition, amendments have been made to terms that have a negligible impact, if any, on
the financial statements. |
|
Most
of the amendments become effective as of the annual reporting period commencing January
1, 2009 or thereafter. The implementation of most amendments carried out by retrospective
adjustment of comparative figures. |
|
Some
of the amendments to the standards are expected, under relevant circumstances, to have a
material impact on the financial statements. The prominent amendments are the new or
amended requirements with respect to the following: |
F - 12
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
C. |
Standards,
amendments to standards and new interpretations that are in effect, which
were applied in these financial statements (cont.) |
|
Improvement
to International Financial Reporting Standards (IFRS) 2008 (cont.) |
|
(1) |
Amendment
to IAS 16 Property Plant and Equipment stipulates that
entities, which during the ordinary course of business, dispose of
property, plant and equipment items that are used for rental purposes,
shall classify these items as inventory as of the date of the discontinued
leasing thereof and shall present the revenue from the sale of these items
as income in the income statement. The cash flows for the purchase and
sale of these items will be presented under cash flows that derived from
or used in operating activity. |
|
The
amendment applies to annual periods commencing on January 1, 2009. The amendment, with
the implementation of related revisions in IAS 7 Cash Flow Statements is to
be applied retroactively. |
|
The
implementation of the provisions of the amendment did not have any impact on the
financial statements of the Group. |
|
(2) |
Amendment
to IAS 28 Investments in Associated Companies, which
stipulates that the impairment of investment in an associated company
shall be treated as an impairment of a single asset and that the amount of
impairment can be cancelled in subsequent periods. |
|
The
amendment applies to annual periods commencing on January 1, 2009. Implementation is to
be applied retroactively. |
|
The
implementation of the Amendment Standard does not expect to have effect on the Groups
financial statements. |
|
(3) |
Amendment
IAS 38 Intangible Assets, which stipulates that payments in
respect of advertising and sales promotion activities will be recognized as an
asset until the date in which the entity has the right to access the acquired
goods or in the event of a receipt of services,the date of receipt of
the services. |
|
The
amendment applies to annual periods commencing on January 1, 2009 and carried out
retroactively. |
|
The
implementation of the Amendment Standard does not expect to have effect on the Groups
financial statements. |
|
(4) |
Amendment
IAS 19 Employee benefits, which stipulates that an accrued
eligibility for compensation on account of absences will be classified as
short-term employee benefits, or as other long-term employee benefits, based on
the date at which the employees right to the benefit was created.
Consequently, the Company is presenting benefits on account of vacation leave
as short-term employee benefits, measured at the height of the non-capitalized
amount that the Company is anticipating to pay on account of the implementation
of this right. |
F - 13
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
D. |
Standards,
Amended Standards and Clarifications that have been Published but not yet
Become Effective, and have not been Adopted by the Company in Early
Adoption |
|
For
information regarding commencement dates, transitional provisions and the expected impact
on the Company from the standards, amendments to standards and interpretations detailed
below see note 2 to the annual financial statements of the Company as of December 31,
2008 and the year then ended: |
|
|
IAS
27 (revised) "Consolidated and Separate Financial Statements" |
|
|
IFRS
3 (amended) Business Combinations. |
|
|
Improvements
to International Financial reporting standards 2008 IFRS5 Non-Current Assets
Held For Sale and Discontinued operations. |
|
|
Amendment
of IFRIC 9 "Reassessment of Embedded Derivatives" and Amendment of IAS 39
"Financial instruments: Recognition and Measurement". |
|
E. |
Exchange
Rates and Linkage Basis |
|
(1) |
Foreign
currency balance, or balances linked to foreign currency are included in
the financial statements according to the exchange rate announced by the
Bank of Israel on the balance sheet date. |
|
(2) |
Balances
linked to the CPI are presented according to index of the last month of
the report period (the index of the month of the financial reports). |
|
(3) |
Following
are the changes in the representative exchange rates of the Euro and the
U.S. dollar vis-a-vis the NIS and in the Israeli Consumer Price Index (CPI): |
|
As of: |
Representative
exchange rate of
the dollar
(NIS per $1)
|
Representative
exchange rate of
the Euro (NIS per
1)
|
CPI
"in respect of"
(in points)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2009 |
|
|
| 4.188 |
|
| 5.573 |
|
| 198.15 |
|
|
March 31, 2008 | | |
| 3.553 |
|
| 5.616 |
|
| 191.33 |
|
|
December 31, 2008 | | |
| 3.802 |
|
| 5.297 |
|
| 198.42 |
|
|
| | |
|
Increase (decrease) during the: | | |
| % |
|
| % |
|
| % |
|
|
|
| |
| |
| |
|
| | |
|
Three months ended March 31, 2009 | | |
| 10.1 |
|
| 5.2 |
|
| (0.1 |
) |
|
Three months ended March 31, 2008 | | |
| (7.6 |
) |
| (0.8 |
) |
| 0.1 |
|
|
Year ended December 31, 2008 | | |
| (1.1 |
) |
| (6.39 |
) |
| 3.8 |
|
F - 14
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 3 |
|
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
|
In
the application of the Groups accounting policies, which are described in Note 2
above, management is required to make judgments, estimates and assumptions about the
carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these
estimates. |
|
The
estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period or in the period of the revision and future periods if
the revision affects both current and future periods. |
|
B. |
Critical
judgments in applying accounting policies |
|
The
following are the critical judgments, apart from those involving estimations (see below),
that the management have made in the process of applying the entitys accounting
policies and that have the most significant effect on the amounts recognized in financial
statements: |
|
|
Deferred
taxes- the company recognizes deferred tax assets for all of the deductible temporary
differences up to the amount as to which it is anticipated that there will be taxable
income against which the temporary difference will be deductible. During each period, for
purposes of calculation of the utilizable temporary difference, management uses estimates
and approximations as a basis which it evaluates each period. |
|
|
Approximation
of length of life of items of fixed assets- each period, the companys management
evaluates salvage values, depreciation methods and length of useful lives of the fixed
assets. |
|
|
Measuring
provisions and contingent liabilities and contingent liabilities- see C(1) below. |
|
|
Measuring
obligation for defined benefits and employee benefits- see C(2) below. |
|
|
Measuring
share based payments- see note 6 below. |
|
|
Measuring
the fair value of an option to sell shares of an associated company see C (3)
below. |
|
|
Measuring
the fair value on account of the allocation of the cost of acquisition see C(4)
below. |
|
C. |
Key
sources of estimation uncertainty. |
|
1. |
Provisions
for legal proceeding |
|
Against
the company and its subsidiaries there are 8 claims pending and open in a total amount of
approximately NIS 11,095 thousands (March 31, 2008: NIS 20,024 thousands, December 31,
2008: NIS 7,980 thousands), in respect of them a provision was credited in a sum of NIS
1,188 thousands (March 31, 2008: NIS 400 thousands, December 31, 2008: NIS 28 thousands
was recorded). For purposes of evaluating the legal relevance of these claims, as well as
determining the reasonableness that they will be realized to its detriment, the companys
management relies on the opinion of legal and professional advisors. After the companys
advisors expound their legal position and the probabilities of the company as regards the
subject of the claim, whether the company will have to bear its consequences or whether
it is will be able to rebuff it, the company approximates the amount which it must record
in the financial statements, if at all. |
F - 15
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 3 |
|
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (Cont.) |
|
C. |
Key
sources of estimation uncertainty (cont.) |
|
1. |
Provisions
for legal proceeding (cont.) |
|
An
interpretation that differs from that of the legal advisors of the company as to the
existing legal situation, a varying understanding by the companys management of the
contractual agreements as well as changes derived from relevant legal rulings or the
addition of new facts may influence the value of the overall provision with respect to
the legal proceedings that are pending against the company and, thus affect the companys
financial condition and operating results. |
|
The
present value of the companys obligation for the payment of benefits to pensioners
and severance pay to employees that are not covered under Section 14 to the Severance Pay
Law is based upon a great amount of data, which are determined on the basis of an
actuarial estimation, through the utilization of a large number of assumptions, including
the capitalization rate. Changes in the actuarial assumptions could affect the book value
of the obligation of the company for employees benefits. The company approximates
the capitalization rate once annually, on the basis of the capitalization rate of
government bonds. Other key assumptions are determined on the basis of conditions present
in the market, and on the basis of the cumulative past experience of the company. |
|
3. |
Fair
value of an option to sell shares of an associated company |
|
The
company has a liability that arises from an option to sell shares of an associated
company, which is classified as a fair value liability through profit or loss. |
|
In
establishing the fair value of the option, the company bases its decision on the
valuation of an independent external expert with the required expertise and experience.
This valuation is carried out once a quarter. |
|
The
company strives to establish a fair value that is as objective as possible, but at the
same time the process of establishing the fair value includes some objective elements,
since changes in the assumptions used in determining the fair value can have a material
impact on the financial situation and operating results of the company. |
|
4. |
Measurement
at fair value on account of the allocation of the cost of acquisition |
|
For
the purpose of allocating the cost of acquisition and determining the fair value of the
tangible and intangible assets and the liabilities of the consolidated subsidiaries at
the date of consolidation, the Companys management based itself primarily on
valuations prepared by external and independent real-estate appraisers and assessors,
possessing the required know-how, experience and expertise. |
|
The
fair value was determined according to generally-accepted valuation methods, including:
Proposed market prices in active markets, discounting of cash flows and the comparison of
selling prices of similar assets and company assets in the immediate proximity. When the
discounted cash flows method was employed, the interest rate for discounting the net cash
flows expected from the assets possesses a material impact on its fair value. |
F - 16
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 3 |
|
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (Cont.) |
|
C. |
Key
sources of estimation uncertainty (Cont.) |
|
4. |
Measurement
at fair value on account of the allocation of the cost of acquisition (cont.) |
|
In
determining the fair value, the business/operational risk associated with the companys
operations is taken into account, to the extent relevant. Part of the said risk is the
risk associated with the nature of the sector wherein the company operates, while part of
the risk stems from the Companys specific characteristics. |
|
The
Group strives to determine a fair value that is as objective as possible, yet the process
of estimating the fair value also includes subjective elements, originating inter alia
from the past experience of the Companys management and its understanding of
expected events in the market wherein the Group operates at the date when the fair value
was determined. |
|
In
light of the above, and in view of the aforementioned in the preceding paragraph, the
setting of the fair value of the Group calls for employing judgment. Changes in the
assumptions that serve for setting the fair value can materially affect the Groups
situation and results of operation. |
|
For
additional details regarding the Groups use of measurement of fair value on account
of the allocation of cost of acquisition, see Note 5. |
NOTE 4 |
|
SEGNIFICANT TRANSACTIONS AND EVENTS |
|
a. |
On
March 19, 2009 a dividend in the amount of NIS 32.77 million was received
from an associated company in respect of a preferred share that was
allotted during the first quarter of 2009, which allows the Company to
receive dividend in accordance with the resolution of the Board of
Directors of the associated company. |
|
b. |
On
February 26, 2009 a dividend was declared by an associated company in the
amount of $10 million out of the unauthorized profits for 2008. The
Companys share in the dividend is NIS 20.8 million. |
|
c. |
On
March 19, 2009 capital note in the amount of NIS 32.77 million was repaid by
the company for an associated company (See also note 7 below). |
|
Acquisition
of items of fixed assets |
|
During
the period of three months ended March 31, 2009 and March 31, 2008, the company became
committed in agreements to purchase fixed assets at a cost of approximately NIS 118,195
thousands and NIS 57,985 thousands, respectively. |
|
Most of the acquisitions of the fixed
assets during the first half of the year in sum of NIS 103,064 thousand were made for
Machine 8- a new machine for the packaging paper system. Total suppliers credit from
acquired fixed assets amounted to NIS 9,491 thousands as of March 31, 2009 (and NIS 17,261
thousands as of December 31, 2008). |
F - 17
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 6 |
|
SHARE BASED PAYMENT |
|
In
January 2008, the Board of Directors of the Company approved a program for the allotment,
for no consideration, of non marketable options to the CEO of the company, to employees
and officers of the company and investees. In the context of the program, an allotment of
285,750 options was approved, of which 40,250 options were to the CEO of the company,
135,500 to management of the subsidiaries and 74,750 to management of the affiliates. |
|
On
May 11, 2008, the board of directors of the company approved the allotment to a
trustee of the balance of the options that had not been allotted through that date, in
the amount of 32,250 options as a pool for the future grant to officers and employees of
investees, subject to the approval of the board of directors. |
|
Each
option is exercisable into one ordinary share of the company with NIS 0.01 par value
against the payment of an exercise increment in the amount of NIS 223.965. The options
will vest in installments as follows: 25% of the total options will be exercisable from
January 14, 2009; 25% of the total options will be exercisable from January 14, 2010; 25%
of the total options will be exercisable from January 14, 2011; and 25% of the total
options will be exercisable from January 14, 2012. The vested options are exercisable
through January 14, 2012, 2013, 2014 for the first and second, third and fourth portions,
respectively. |
|
The
cost of the benefit embedded in the allotted options as above, on the basis of the fair
value as of the date they are granted, was approximated to be the amount of approximately
NIS 0.3 million. This amount will be charged to the statement of operations over the
vesting period. The debt for the grant to officers of the affiliates will be paid in cash. |
|
The
fair value of the options granted as aforementioned was estimated by applying the Black
and Scholes model. In this context, the effect of the terms of vesting will not taken
into account by the company. |
|
The
parameters which were used for implementation of the model are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share price (NIS) |
123.9 |
|
|
|
Exercise price (NIS) |
223.965 |
|
|
|
Anticipated volatility(*) |
31.01% |
|
|
|
Length of life of the options (years) |
3-5 |
|
|
|
Non risk interest rate |
6.30% |
|
(*)
The anticipated volatility is determined on the basis of historical
fluctuations of the share price of the company. The average length of life of
the option was determined in accordance with managements forecast as to
the holding period by the employees of options granted to them, in
consideration of their functions in the company and past experience of the
company with employees leaving. |
NOTE 7 |
|
OTHER INCOME (EXPENSES) |
|
a. |
On
March 19, 2009 the Company recorded income of NIS 16.3 million in respect of a dividend
paid to the company only, which was distributed to the Company by an associated company
against the allocation of preferred shares, as stated in note 4 above. |
|
b. |
The
Company recorded other expenses in the amount of NIS 3 million in respect of
a revaluation of PUT option on an associated company. |
F - 18
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 8 |
|
INCOME TAX CHARGE |
|
The
effective tax rate for the three months period ended March 31, 2009 is approximately 71%
because of tax provision for occasions at the financial statements report period and
because of non-deductible expenses such as revaluation of PUT option for investee and
other non-deductible expenses. |
NOTE 9 |
|
SEGMENT INFORMATION |
|
The
Group has been implementing IFRS 8 operating segments (hereinafter IFRS
8) as of January 1, 2009. In accordance with the provisions of IFRS 8, operating
segments are identified on the basis of internal reports on the Groups components,
which are regularly reviewed by the chief operational decision maker of the Group for the
purpose of allocating resources and evaluating the performance of the operating segments. |
|
In
contrast, the previous standard (IAS 14 segment reporting) required an entity
to identify two segment systems (business and geographic), based on the risk-reward
approach, while the internal financial reporting system for the key managerial staff of
the entity served only as the starting point for the identification of said segments. |
|
Following
the adoption of the new standard the Group identified reportable segments that were
different than those presented in previous reporting periods. |
|
The
paper and recycling segment generates revenue from the sale of paper products
to paper manufacturing companies as well as from the recycling of paper and cardboard. |
|
The
office supplies marketing segment generates revenue from the sale of office
supplies to customers. |
|
The
packaging and cardboard products segment generates revenue from the sale of
packaging and cardboard products to customers. |
|
For
the purpose of tracking the performance of segments and allocating resources among them,
the chief operational decision-maker monitors the tangible, intangible and financial
assets of each segment. All assets are allocated to the different segments except for
investment in associated companies, other financial assets and deferred tax assets. |
|
Information
relating to these assets is reported below. Amounts that were reported with respect to
previous reporting periods were restated on the basis of the new segment reporting. |
F - 19
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 9 |
|
SEGMENT INFORMATION (cont.) |
|
Three months ended March 31, 2009
|
|
(Unaudited)
|
|
Paper and recycling
|
Marketing of office
supplies
|
Packaging
and carton
products
|
Adjustments to
consolidation
|
Total
|
|
Jan-march
2009
|
Jan- march
2008
|
Jan-march
2009
|
Jan- march
2008
|
Jan-march
2009
|
Jan-march
2009
|
Jan- march
2008
|
Jan-march
2009
|
Jan- march
2008
|
|
|
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
| 62,641 |
|
| 109,512 |
|
| 36,424 |
|
| 33,007 |
|
| 130,816 |
|
| - |
|
| - |
|
| 229,881 |
|
| 142,519 |
|
Sales between Segments | | |
| 17,824 |
|
| - |
|
| 269 |
|
| 165 |
|
| 1,651 |
|
| (19,744 |
) |
| (165 |
) |
| - |
|
| - |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
Total sales | | |
| 80,645 |
|
| 109,512 |
|
| 36,693 |
|
| 33,172 |
|
| 132,467 |
|
| (19,744 |
) |
| (165 |
) |
| 229,881 |
|
| 142,519 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
Segment results | | |
| 15,079 |
|
| 16,866 |
|
| 917 |
|
| 595 |
|
| 3,878 |
|
| (1,362 |
) |
| - |
|
| 18,512 |
|
| 17,461 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
Finance income | | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| 3,031 |
|
| 1,894 |
|
Finance expenses | | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| 7,581 |
|
| 8,701 |
|
Share in profit of associated companies, net | | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| 15,048 |
|
| 14,633 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
Profit before taxes on income | | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| 29,010 |
|
| 25,287 |
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| |
|
Year ended December 31, 2008
|
|
Paper and
recycling
|
Marketing of office
supplies
|
Marketing of office
supplies
|
Adjustments to
consolidation
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
| 382,250 |
|
| 130,354 |
|
| 160,880 |
|
| - |
|
| 673,484 |
|
Sales between Segments | | |
| 24,517 |
|
| 760 |
|
| 2,216 |
|
| (27,493 |
) |
| - |
|
|
| |
| |
| |
| |
| |
Total sales | | |
| 406,767 |
|
| 131,114 |
|
| 163,069 |
|
| (27,493 |
) |
| 673,484 |
|
|
| |
| |
| |
| |
| |
Segment results | | |
| 37,773 |
|
| 3,233 |
|
| (3,848 |
) |
| (1,807 |
) |
| 35,351 |
|
|
| |
| |
| |
| |
| |
Finance income | | |
| |
|
| |
|
| |
|
| |
|
| 12,069 |
|
Finance expenses | | |
| |
|
| |
|
| |
|
| |
|
| 27,112 |
|
Share in profit of associated companies, net | | |
| |
|
| |
|
| |
|
| |
|
| 51,315 |
|
|
| |
| |
| |
| |
| |
Profit before taxes on income | | |
| |
|
| |
|
| |
|
| |
|
| 71,623 |
|
|
| |
| |
| |
| |
| |
As to purchasing fixed assets at
paper and recycling segment (purchasing of new machine for the packaging paper system)
see note 5 above.
F - 20
HADERA PAPER LTD
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 10 |
|
RECLASSIFICATION |
|
Comparative
figures related to employee benefits sections as of March 31, 2008 and December 31, 2008
were reclassified in these financial statements as follows: |
|
a. |
On
December 31, 2008 NIS 17,478 thousand were reclassified from employee benefit
obligations in non-current liabilities to employee benefit obligations in
current liabilities. |
|
b. |
On
December 31, 2008 NIS 1,119 thousand were reclassified from other payables to
employee benefit obligations in current liabilities. |
|
c. |
On
March 31, 2008 NIS 2,819 thousand were reclassified from other payables to
employee benefit obligations in non-current liabilities. |
|
d. |
On
March 31, 2008 NIS 513 thousand were reclassified from employee benefit
assets to employee benefit obligations in non-current liabilities. |
|
e. |
On
March 31, 2008 NIS 11,851 thousand were reclassified from employee benefit
obligations in non-current liabilities to employee benefit obligations in
current liabilities. |
F - 21
Enclosed please find the financial
reports of the following associated companies:
|
|
Mondi
Hadera Paper Ltd. |
Hadera-Paper LTD group
Meizer st
Industrial Zone,
P.O.B 142 Hadera
38101,Israel
Tel: 972-4-6349402
Fax: 972-4-6339740
hq@hadera-paper.co.il
www.hadera-paper.co.il
Exhibit 4
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
UNAUDITED CONDENSED INTERIM
CONSOLIDATED
FINANCIAL STATEMENTS
AS OF MARCH 31, 2009
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS OF MARCH 31, 2009
TABLE OF CONTENTS
|
|
|
|
|
Brightman Almagor Zohar
Haifa Office
5 Ma'aleh Hashichrur Street
Haifa, 33284
P.O.B. 5648, Haifa 31055
Israel
|
|
|
|
|
|
Tel: +972 (4) 860 7373
Fax: +972 (4) 867 2528
Info-haifa@deloitte.co.il
www.deloitte.com
|
To the shareholders of
Mondi Hadera Paper Ltd.
|
Report
on review of Interim Financial Information for the Three Months Ended
March 31, 2009 |
Introduction
We have reviewed the accompanying
statement of financial position of Mondi Hadera Paper Ltd. (the Company) as of
March 31, 2009 and the related statements of income, statement of comprehensive income,
changes in equity and cash flows for the three months period then ended. Management is
responsible for the preparation and presentation of this interim financial information in
accordance with IAS 34 Interim Financial Reporting and in accordance with
Section D of the Israeli Securities Regulations (periodic and immediate reports), 1970.
Our responsibility is to express a conclusion on this financial information based on our
review.
Scope of Review
We conducted our review in accordance
with review standard No. 1, Review of Interim Financial Information Performed by the
Independent Auditor of the Company. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Israeli Standards
on Auditing , and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come
to our attention that causes us to believe that the accompanying interim financial
information is not prepared, in all material respects, in accordance with International
Accounting Standard 34 Interim Financial Reporting .
In addition to the aforementioned in
the previous section, Based on our review, nothing has come to our attention that causes
us to believe that the accompanying interim financial information is not prepared, in all
material respects in accordance with Section D of the Israeli Securities Regulations
(periodic and immediate reports), 1970.
Brightman Almagor Zohar
& Co.
Certified Public
Accountants
A Member Firm of Deloitte
Touche Tohmatsu
April 27, 2009
Haifa, Israel.
M - 1
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
(NIS in thousands)
|
March 31,
|
December 31,
|
|
2009
|
2008
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
| |
|
| |
|
| |
|
| | |
Current assets | | |
Cash and cash equivalents | | |
| 16,115 |
|
| 5,927 |
|
| 13,315 |
|
Financial assets carried at fair value through profit or loss | | |
| 1,400 |
|
| 811 |
|
| 2,382 |
|
Trade receivables | | |
| 186,517 |
|
| 202,162 |
|
| 168,911 |
|
Other receivables | | |
| 1,252 |
|
| 2,946 |
|
| 1,379 |
|
Inventories | | |
| 115,085 |
|
| 120,719 |
|
| 140,002 |
|
|
| |
| |
| |
Total current assets | | |
| 320,369 |
|
| 332,565 |
|
| 325,989 |
|
|
| |
| |
| |
| | |
Non-current assets | | |
Property, plant and equipment | | |
| 152,880 |
|
| 155,970 |
|
| 154,441 |
|
Goodwill | | |
| 3,177 |
|
| 3,177 |
|
| 3,177 |
|
Long term trade receivables | | |
| 251 |
|
| 538 |
|
| 355 |
|
|
| |
| |
| |
Total non-current assets | | |
| 156,308 |
|
| 159,685 |
|
| 157,973 |
|
|
| |
| |
| |
Total assets | | |
| 476,677 |
|
| 492,250 |
|
| 483,962 |
|
|
| |
| |
| |
| | |
Equity and liabilities | | |
| | |
Current liabilities | | |
Short-term bank credit | | |
| 119,210 |
|
| 102,087 |
|
| 105,388 |
|
Current maturities of long-term bank loans | | |
| 15,847 |
|
| 14,456 |
|
| 15,768 |
|
Capital notes to shareholders | | |
| - |
|
| 5,093 |
|
| - |
|
Trade payables | | |
| 73,510 |
|
| 98,099 |
|
| 97,293 |
|
Hadera Paper Ltd. Group, net | | |
| 63,249 |
|
| 74,340 |
|
| 69,614 |
|
Other financial liabilities | | |
| 5,471 |
|
| - |
|
| 5,512 |
|
Current tax liabilities | | |
| 86 |
|
| 96 |
|
| 107 |
|
Other payables and accrued expenses | | |
| 19,593 |
|
| 19,770 |
|
| 13,529 |
|
Accrued severance pay, net | | |
| 249 |
|
| 46 |
|
| 214 |
|
|
| |
| |
| |
Total current liabilities | | |
| 297,215 |
|
| 313,987 |
|
| 307,425 |
|
|
| |
| |
| |
| | |
Non-current liabilities | | |
Long-term bank loans | | |
| 20,517 |
|
| 35,969 |
|
| 23,484 |
|
Deferred taxes | | |
| 25,538 |
|
| 20,781 |
|
| 24,274 |
|
Employees Benefits | | |
| 7,230 |
|
| 6,309 |
|
| 6,221 |
|
|
| |
| |
| |
Total non-current liabilities | | |
| 53,285 |
|
| 63,059 |
|
| 53,979 |
|
|
| |
| |
| |
| | |
Commitments and contingent liabilities | | |
| | |
Shareholders' equity | | |
Share capital | | |
| 1 |
|
| 1 |
|
| 1 |
|
Premium | | |
| 43,352 |
|
| 43,352 |
|
| 43,352 |
|
Capital reserves | | |
| (3,120 |
) |
| 929 |
|
| (3,150 |
) |
Retained earnings | | |
| 85,944 |
|
| 70,922 |
|
| 82,355 |
|
|
| |
| |
| |
| | |
| 126,177 |
|
| 115,204 |
|
| 122,558 |
|
|
| |
| |
| |
Total equity and liabilities | | |
| 476,677 |
|
| 492,250 |
|
| 483,962 |
|
|
| |
| |
| |
D. Muhlgay Finance Director
|
A. Solel Managing Director
|
R. Starkov Chairman of the Supervisory Board
|
Approval date of the interim
financial statements: April 27, 2009.
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
M - 2
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT
(NIS in thousands)
|
Three months ended March 31,
|
Year ended
December 31,
|
|
2009
|
2008
|
2008
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenue |
|
|
| 182,032 |
|
| 205,141 |
|
| 732,347 |
|
Cost of sales | | |
| 163,116 |
|
| (*) 183,005 |
|
| 649,640 |
|
|
| |
| |
| |
Gross profit | | |
| 18,916 |
|
| 22,136 |
|
| 82,707 |
|
|
| |
| |
| |
| | |
Operating costs and expenses | | |
Selling expenses | | |
| 10,917 |
|
| (*) 9,423 |
|
| 38,293 |
|
General and administrative expenses | | |
| 2,649 |
|
| 3,122 |
|
| 9,740 |
|
Other income (expenses) | | |
| (55 |
) |
| (45 |
) |
| 584 |
|
|
| |
| |
| |
| | |
| 13,511 |
|
| 12,500 |
|
| 48,617 |
|
|
| |
| |
| |
| | |
Operating profit | | |
| 5,405 |
|
| 9,636 |
|
| 34,090 |
|
| | |
Finance income | | |
| (1,134 |
) |
| (4,062 |
) |
| (5,889 |
) |
Finance costs | | |
| 1,697 |
|
| 3,261 |
|
| 13,496 |
|
|
| |
| |
| |
| | |
| 563 |
|
| (801 |
) |
| 7,607 |
|
| | |
Profit before tax | | |
| 4,842 |
|
| 10,437 |
|
| 26,483 |
|
| | |
Income tax charge | | |
| 1,253 |
|
| 2,514 |
|
| 7,127 |
|
|
| |
| |
| |
| | |
Profit for the period | | |
| 3,589 |
|
| 7,923 |
|
| 19,356 |
|
|
| |
| |
| |
(*) Reclassified
(see note 2D)
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
M - 3
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED COMPREHENSIVE
INCOME
(NIS in thousands)
|
Three months ended March 31,
|
Year ended
December 31,
|
|
2009
|
2008
|
2008
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Profit for period |
|
|
| 3,589 |
|
| 7,923 |
|
| 19,356 |
|
|
|
|
| |
|
| |
|
| |
|
Cash flow hedges, net | | |
| (938 |
) |
| - |
|
| (4,079 |
) |
Transfer to profit or loss from equity on cash flow hedge | | |
| 968 |
|
| - |
|
| - |
|
|
| |
| |
| |
Total comprehensive income for the period (net of tax) | | |
| 3,619 |
|
| 7,923 |
|
| 15,277 |
|
|
| |
| |
| |
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
M - 4
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
CONDENSED INTERIM STATEMENTS OF CHANGES IN
EQUITY
(NIS in thousands)
|
Share
capital
|
Premium
|
Capital
Reserves
|
Retained
earnings
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2009 |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
(Unaudited) | | |
Balance - January 1, 2009 | | |
| 1 |
|
| 43,352 |
|
| (3,150 |
) |
| 82,355 |
|
| 122,558 |
|
Total comprehensive income for the period | | |
| - |
|
| - |
|
| 30 |
|
| 3,589 |
|
| 3,619 |
|
|
| |
| |
| |
| |
| |
Balance - March 31, 2009 | | |
| 1 |
|
| 43,352 |
|
| (3,120 |
) |
| 85,944 |
|
| 126,177 |
|
|
| |
| |
| |
| |
| |
| | |
Three months ended March 31, 2008 | | |
(Unaudited) | | |
Balance - January 1, 2008 | | |
| 1 |
|
| 43,352 |
|
| 929 |
|
| 62,999 |
|
| 107,281 |
|
Total comprehensive income for the period | | |
| - |
|
| - |
|
| - |
|
| 7,923 |
|
| 7,923 |
|
|
| |
| |
| |
| |
| |
Balance - March 31, 2008 | | |
| 1 |
|
| 43,352 |
|
| 929 |
|
| 70,922 |
|
| 115,204 |
|
|
| |
| |
| |
| |
| |
| | |
Year ended December 31, 2008 | | |
Changes during 2008: | | |
Balance - January 1, 2008 | | |
| 1 |
|
| 43,352 |
|
| 929 |
|
| 62,999 |
|
| 107,281 |
|
Total comprehensive income for the Year | | |
| - |
|
| - |
|
| (4,079 |
) |
| 19,356 |
|
| 15,277 |
|
|
| |
| |
| |
| |
| |
Balance - December 31, 2008 | | |
| 1 |
|
| 43,352 |
|
| (3,150 |
) |
| 82,355 |
|
| 122,558 |
|
|
| |
| |
| |
| |
| |
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
M - 5
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
(NIS in thousands)
|
Three months ended March 31,
|
Year ended
December 31,
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows - operating activities |
|
|
| |
|
| |
|
| |
|
Profit for the year | | |
| 3,589 |
|
| 7,923 |
|
| 19,356 |
|
Adjustments to reconcile net profit to net | | |
cash used in operating activities (Appendix A) | | |
| (10,123 |
) |
| 5,328 |
|
| 28,792 |
|
|
| |
| |
| |
Net cash (used in) provided by operating activities | | |
| (6,534 |
) |
| 13,251 |
|
| 48,148 |
|
|
| |
| |
| |
| | |
Cash flows - investing activities | | |
Acquisition of property plant and equipment | | |
| (1,464 |
) |
| (1,779 |
) |
| (10,608 |
) |
Proceeds from sale of property plant and Equipment | | |
| 165 |
|
| - |
|
| 288 |
|
Interest received | | |
| 40 |
|
| 90 |
|
| 415 |
|
|
| |
| |
| |
Net cash used in investing activities | | |
| (1,259 |
) |
| (1,689 |
) |
| (9,905 |
) |
|
| |
| |
| |
| | |
Cash flows - financing activities | | |
Short-term bank credit, net | | |
| 13,822 |
|
| 327 |
|
| 3,628 |
|
Repayment of long-term bank loans | | |
| (2,799 |
) |
| (2,028 |
) |
| (14,024 |
) |
Repayment of capital notes to shareholders | | |
| - |
|
| - |
|
| (5,700 |
) |
Interest paid | | |
| (1,259 |
) |
| (2,884 |
) |
| (10,852 |
) |
|
| |
| |
| |
Net cash provided by (used in) financing activities | | |
| 9,764 |
|
| (4,585 |
) |
| (26,948 |
) |
|
| |
| |
| |
| | |
Increase in cash and cash equivalents | | |
| 1,971 |
|
| 6,977 |
|
| 11,295 |
|
Cash and cash equivalents at the beginning of the | | |
financial period | | |
| 13,315 |
|
| 323 |
|
| 323 |
|
Net foreign exchange difference on cash and cash equivalents | | |
| 829 |
|
| (1,373 |
) |
| 1,697 |
|
|
| |
| |
| |
| | |
Cash and cash equivalents of the end of the financial period | | |
| 16,115 |
|
| 5,927 |
|
| 13,315 |
|
|
| |
| |
| |
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
M - 6
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED
APPENDICES TO STATEMENTS OF CASH FLOWS
(NIS in thousands)
|
|
Three months ended March 31,
|
Year ended
December 31,
|
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. |
Adjustments to reconcile net profit to net cash (used in) |
|
|
| |
|
| |
|
| |
|
|
provided by operating activities | | |
|
| | |
|
Finance expenses (income) recognized in profit and loss, net | | |
| 563 |
|
| (801 |
) |
| 7,607 |
|
|
Taxes on income recognized in profit and loss | | |
| 1,253 |
|
| 2,514 |
|
| 7,127 |
|
|
Depreciation and amortization | | |
| 2,915 |
|
| 2,909 |
|
| 11,649 |
|
|
Capital loss (gain) on disposal of property plant and equipment | | |
| (55 |
) |
| - |
|
| 584 |
|
|
| | |
|
Changes in assets and liabilities: | | |
|
(Increase) Decrease in trade receivables and other receivables | | |
| (14,850 |
) |
| (14,261 |
) |
| 21,652 |
|
|
Decrease in inventories | | |
| 24,917 |
|
| 22,647 |
|
| 2,551 |
|
|
Decrease in trade and other payables, and accrued expenses | | |
| (18,479 |
) |
| (10,889 |
) |
| (20,776 |
) |
|
(Decrease) Increase in Hadera Paper Ltd. Group, net | | |
| (6,365 |
) |
| 3,231 |
|
| (1,495 |
) |
|
|
| |
| |
| |
|
| | |
| (10,101 |
) |
| 5,350 |
|
| 28,899 |
|
|
| | |
|
Income tax paid | | |
| (22 |
) |
| (22 |
) |
| (107 |
) |
|
|
| |
| |
| |
|
| | |
| (10,123 |
) |
| 5,328 |
|
| 28,792 |
|
|
|
| |
| |
| |
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
M - 7
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM
CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 1 |
|
DESCRIPTION OF BUSINESS AND GENERAL |
|
Mondi
Hadera Paper Ltd. (the Company) was incorporated and commenced operations on
January 1, 2000. The Company and its Subsidiaries are engaged in the production and
marketing of paper, mainly in Israel. |
|
The
Company is presently owned by Neusiedler Holdings BV. ("NL" or the "Parent Company")
(50.1%) and Hadera Paper Ltd. (49.9%). |
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
The
condensed financial statements have been prepared in accordance with International
Accounting Standard 34 Interim Financial Reporting. |
|
The
unaudited condensed interim consolidated financial statements as of March 31, 2009 and
for the three months then ended (interim financial statements) of the Company
and subsidiaries should be read in conjunction with the audited consolidated financial
statements of the Company and subsidiaries as of December 31, 2008 and for the year then
ended, including the notes thereto. |
|
The
condensed Financial Statements were prepared in accordance with section D of the Israeli
Securities Regulations (Periodic and Immediate Reports), 1970. |
|
B. |
Significant
accounting policies |
|
The
same accounting policies, presentation and methods of computation have been followed in
these condensed financial statements as were applied in the preparation of the Groups
financial statements for the year ended 31 December 2008, except for the impact of the
adoption of the Standards and Interpretations described below: |
|
IAS
1 (revised 2007) Presentation of Financial Statements |
|
The
revised Standard has introduced a number of terminology changes (including revised titles
for the condensed financial statements) and has resulted in a number of changes in
presentation and disclosure. According to the requirements of the standard the statement
of comprehensive income is presented separated from the income statement. |
|
However,
the revised Standard has had no impact on the reported results of financial position of
the Group. |
M - 8
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM
CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
C. |
Recent
Accounting Standards |
|
Amendment
to IFRS 7 Financial Instruments Disclosure |
|
The
amendments require enhanced disclosures about fair value measurements and liquidity risk,
by establishing a three level hierarchy for making fair value measurements. |
|
Entities
are required to apply the amendments for annual periods beginning on or after January 1,
2009, with earlier application permitted. |
|
At
this stage, the management of the Group estimated that the implementation of the
amendment is not expected to have any influence on the financial statements of the Group. |
|
Comparative
figures relating to the three months ended march 31, 2008 were reclassified in these
financial statements as follows: NIS 2,012 thousand were reclassified from cost of sales
to selling expenses. |
|
E. |
Exchange
Rates and Linkage Basis |
|
Following
are the changes in the representative exchange rates of the Euro and the U.S. dollar
vis-a-vis the NIS and in the Israeli Consumer Price Index (CPI): |
|
As of:
|
Representative
exchange rate of the Euro (NIS per 1)
|
Representative
exchange rate of the dollar
(NIS per $1)
|
CPI
"in respect of"
(in points)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2009 |
|
|
| 5.574 |
|
| 4.188 |
|
| 110.4 |
|
|
March 31, 2008 | | |
| 5.617 |
|
| 3.553 |
|
| 106.50 |
|
|
December 31, 2008 | | |
| 5.2973 |
|
| 3.8020 |
|
| 110.55 |
|
|
Increase (decrease) during the:
|
%
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2009 |
|
|
| 5.23 |
|
| 10.15 |
|
| (0.13 |
) |
|
Three months ended March 31, 2008 | | |
| (0.75 |
) |
| (7.62 |
) |
| 0.09 |
|
|
Year ended December 31, 2008 | | |
| (6.4 |
) |
| (1.14 |
) |
| 3.9 |
|
M - 9
MONDI HADERA PAPER LTD. AND
SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2009
NOTE 3 |
|
RELATED PARTIES AND INTERESTED PARTIES |
|
A. |
Balances
with Related Parties |
|
|
Hadera Paper and
its subsidiaries
|
Neusiedler Holding and its related parties
|
|
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
|
|
2009
|
2008
|
2008
|
2009
|
2008
|
2008
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Other receivables |
|
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| 370 |
|
|
|
| |
| |
| |
| |
| |
| |
|
Trade payables | | |
| 63,249 |
|
| 74,340 |
|
| 69,614 |
|
| 655 |
|
| 4,266 |
|
| 221 |
|
|
|
| |
| |
| |
| |
| |
| |
|
Capital notes to shareholders | | |
| - |
|
| 2,547 |
|
| - |
|
| - |
|
| 2,547 |
|
| - |
|
|
|
| |
| |
| |
| |
| |
| |
|
B. |
Transactions
with Related Parties |
|
|
Hadera Paper and
its subsidiaries
|
Neusiedler Holding and its related parties
|
|
|
Three months ended
March 31,
|
Year ended
December 31,
|
Three months ended March 31,
|
Year ended
December 31,
|
|
|
2009
|
2008
|
2008
|
2009
|
2008
|
2008
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
|
| 5,214 |
|
| 3,222 |
|
| 14,862 |
|
| - |
|
| - |
|
| - |
|
|
|
| |
| |
| |
| |
| |
| |
|
Purchases of goods | | |
| - |
|
| - |
|
| - |
|
| 526 |
|
| 839 |
|
| 2,895 |
|
|
|
| |
| |
| |
| |
| |
| |
|
Cost of sales | | |
| 21,948 |
|
| 22,880 |
|
| 88,815 |
|
| 532 |
|
| 732 |
|
| 2,660 |
|
|
|
| |
| |
| |
| |
| |
| |
|
Sales, general and administrative expenses | | |
| 818 |
|
| 678 |
|
| 2,703 |
|
| - |
|
| - |
|
| - |
|
|
|
| |
| |
| |
| |
| |
| |
|
Financing expenses, net | | |
| 169 |
|
| 938 |
|
| 3,703 |
|
| - |
|
| 58 |
|
| 232 |
|
|
|
| |
| |
| |
| |
| |
| |
|
C. |
(1) |
The Company leases its premises from Hadera paper and receives services
(including energy, water, maintenance and professional services) under
agreements, which are renewed based on shareholders agreements. |
|
(2) |
The
Group is obligated to pay commissions to Mondi Neuseiedler Gmbh. |
M - 10
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS OF MARCH 31, 2009
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
AS OF MARCH 31, 2009
TABLE OF CONTENTS
|
Brightman Almagor Zohar
Haifa Office
5 Ma'aleh Hashichrur Street
Haifa, 33284
P.O.B. 5648, Haifa 31055
Israel
Tel: +972 (4) 860 7373
Fax: +972 (4) 867 2528
Info-haifa@deloitte.co.il
www.deloitte.com |
To the shareholders of
Hogla-Kimberly Ltd.
Re: |
Review
of Unaudited Condensed Interim Consolidated
Financial Statements for the Three Months Ended March 31, 2008 |
Introduction
We have reviewed the accompanying
statement of financial position of Hogla Kimberly LTD. (the Company) as of
March 31, 2009 and the related statements of income, statement of comprehensive income,
changes in equity and cash flows for the three months period then ended. Management is
responsible for the preparation and presentation of this interim financial information in
accordance with IAS 34 Interim Financial Reporting and in accordance with
Section D of the Israeli Securities Regulations (periodic and immediate reports), 1970.
Our responsibility is to express a conclusion on this financial information based on our
review.
Scope of Review
We conducted our review in accordance
with accounting standard No. 1, Review of Interim Financial Information Performed by
the Independent Auditor of the Company. A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Israeli Standards
on Auditing , and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come
to our attention that causes us to believe that the accompanying interim financial
information is not prepared, in all material respects, in accordance with International
Accounting Standard 34 Interim Financial Reporting .
In addition to the aforementioned in
the previous section, Based on our review, nothing has come to our attention that causes
us to believe that the accompanying interim financial information is not prepared, in all
material respects in accordance with Section D of the Israeli Securities Regulations
(periodic and immediate reports), 1970.
Brightman Almagor Zohar & Co.
Certified Public Accountants
A Member Firm of Deloitte Touche Tohmatsu
Israel
April, 30 2009
H - 1
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(NIS in thousands)
|
As of March 31,
|
As of December 31,
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
| |
|
| |
|
| |
|
Cash and cash equivalents | | |
| 20,395 |
|
| 26,190 |
|
| 23,219 |
|
Trade receivables | | |
| 321,778 |
|
(*) | 286,870 |
|
| 264,918 |
|
Inventories | | |
| 226,651 |
|
| 184,767 |
|
| 234,841 |
|
Current tax assets | | |
| 125 |
|
| 10,900 |
|
| 137 |
|
Capital note of shareholder | | |
| - |
|
| 31,600 |
|
| 32,770 |
|
Other current assets | | |
| 9,359 |
|
(*) | 5,918 |
|
| 6,340 |
|
|
| |
| |
| |
| | |
| 578,308 |
|
| 546,245 |
|
| 562,225 |
|
|
| |
| |
| |
Non-Current Assets | | |
VAT Receivable | | |
| 40,669 |
|
| 35,299 |
|
| 41,423 |
|
Property plant and equipment | | |
| 322,035 |
|
| 296,090 |
|
| 317,174 |
|
Goodwill | | |
| 18,582 |
|
| 19,940 |
|
| 18,708 |
|
Employee benefit asset | | |
| 343 |
|
| - |
|
| 343 |
|
Deferred tax assets | | |
| 4,979 |
|
| 10,428 |
|
| 4,389 |
|
Prepaid expenses for operating lease | | |
| 1,861 |
|
| 1,990 |
|
| 1,894 |
|
|
| |
| |
| |
| | |
| 388,469 |
|
| 363,747 |
|
| 383,931 |
|
|
| |
| |
| |
| | |
| 966,777 |
|
| 909,992 |
|
| 946,156 |
|
|
| |
| |
| |
Current Liabilities | | |
Borrowings | | |
| 57,096 |
|
| 96,611 |
|
| 52,718 |
|
Trade payables | | |
| 302,982 |
|
(*) | 254,667 |
|
| 286,835 |
|
Employee benefit obligations | | |
| 13,680 |
|
(*) | 10,323 |
|
(*) | 11,241 |
|
Current tax liabilities | | |
| 6,129 |
|
| - |
|
| 5,413 |
|
Dividend payables | | |
| 41,730 |
|
| - |
|
| - |
|
Other payables and accrued expenses | | |
| 50,812 |
|
(*) | 44,489 |
|
| 44,023 |
|
|
| |
| |
| |
| | |
| 472,429 |
|
| 406,090 |
|
| 390,797 |
|
|
| |
| |
| |
Non-Current Liabilities | | |
Borrowings | | |
| 53,195 |
|
| 77,098 |
|
| 59,044 |
|
Employee benefit obligations | | |
| 8,222 |
|
(*) | 5,930 |
|
(*) | 7,879 |
|
Deferred tax liabilities | | |
| 38,401 |
|
| 39,576 |
|
| 38,014 |
|
|
| |
| |
| |
| | |
| 99,818 |
|
| 122,604 |
|
| 104,937 |
|
|
| |
| |
| |
Capital and reserves | | |
Issued capital | | |
| 265,246 |
|
| 265,246 |
|
| 265,246 |
|
Reserves | | |
| (58,087 |
) |
| (48,026 |
) |
| (57,680 |
) |
Retained earnings | | |
| 187,371 |
|
| 164,078 |
|
| 233,423 |
|
|
| |
| |
| |
| | |
| 394,530 |
|
| 381,298 |
|
| 440,989 |
|
|
| |
| |
| |
| | |
| 966,777 |
|
| 909,992 |
|
| 946,156 |
|
|
| |
| |
| |
|
|
|
|
(*) Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Z. Livnat |
O. Lux |
A. Schor |
Vice-Chairman of the Board of Directors |
Chief Financial Officer |
Chief Executive Officer |
|
|
|
Approval date of the interim
financial statements: April 30, 2009.
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
H - 2
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS
(NIS in thousands)
|
Three months ended
March 31,
|
Year ended
December 31,
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
| 437,817 |
|
| 405,330 |
|
| 1,608,576 |
|
Cost of sales | | |
| 301,839 |
|
| 276,817 |
|
| 1,097,567 |
|
|
| |
| |
| |
Gross profit | | |
| 135,978 |
|
| 128,513 |
|
| 511,009 |
|
|
| |
| |
| |
| | |
Operating costs and expenses | | |
Selling and marketing expenses | | |
| 78,367 |
|
| 78,402 |
|
| 308,737 |
|
General and administrative expenses | | |
| 17,672 |
|
| 20,042 |
|
| 66,519 |
|
|
| |
| |
| |
Operating profit | | |
| 39,939 |
|
| 30,069 |
|
| 135,753 |
|
| | |
Finance expenses | | |
| (5,871 |
) |
| (5,313 |
) |
| (12,355 |
) |
Finance income | | |
| 4,397 |
|
| 6,237 |
|
| 13,702 |
|
|
| |
| |
| |
| | |
Profit before tax | | |
| 38,465 |
|
| 30,993 |
|
| 137,100 |
|
Income taxes charge | | |
| (10,017 |
) |
| (10,711 |
) |
| (47,473 |
) |
|
| |
| |
| |
| | |
Profit for the period | | |
| 28,448 |
|
| 20,282 |
|
| 89,627 |
|
|
| |
| |
| |
|
|
|
|
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
H - 3
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(NIS in thousands)
|
Three months ended
March 31,
|
Year ended
December 31,
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Profit for period |
|
|
| 28,448 |
|
| 20,282 |
|
| 89,627 |
|
Exchange differences arising on translation of foreign operations | | |
| (1,491 |
) |
| (40,096 |
) |
| (52,096 |
) |
Cash flow hedges | | |
| 2,708 |
|
| (1,105 |
) |
| (572 |
) |
Transfer to profit or loss from equity on cash flow hedge | | |
| (1,261 |
) |
| 1,356 |
|
| 4,081 |
|
Income tax relating to components of other comprehensive income | | |
| (363 |
) |
| (75 |
) |
| (987 |
) |
|
| |
| |
| |
| | |
Other comprehensive income for the period (net of tax) | | |
| (407 |
) |
| (39,920 |
) |
| (49,574 |
) |
|
| |
| |
| |
| | |
Total comprehensive income for the period | | |
| 28,041 |
|
| (19,638 |
) |
| 40,053 |
|
|
| |
| |
| |
|
|
|
|
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
H - 4
HOGLA-KIMBERLY LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(NIS in thousands)
|
Share capital
|
Capital
reserves
|
Foreign currency
translation reserve
|
Accumulated other
comprehensive income
|
Retained
earnings
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
March 31, 2009 (unaudited) | | |
| | |
Balance - January 1, 2009 | | |
| 29,638 |
|
| 235,608 |
|
| (58,853 |
) |
| 1,173 |
|
| 233,423 |
|
| 440,989 |
|
Total comprehensive income | | |
| - |
|
| - |
|
| (1,491 |
) |
| 1,084 |
|
| 28,448 |
|
| 28,041 |
|
Dividend | | |
| - |
|
| - |
|
| - |
|
| - |
|
| (74,500 |
) |
| (74,500 |
) |
Balance - March 31, 2009 | | |
| 29,638 |
|
| 235,608 |
|
| (60,344 |
) |
| 2,257 |
|
| 187,371 |
|
| 394,530 |
|
|
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
H - 5
HOGLA-KIMBERLY LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(NIS in thousands)
|
Share capital
|
Capital
reserves
|
Foreign currency
translation reserve
|
Accumulated other
comprehensive income
|
Retained
earnings
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
March 31, 2008 (unaudited) | | |
| | |
Balance - January 1, 2008 | | |
| 29,638 |
|
| 235,608 |
|
| (6,757 |
) |
| (1,349 |
) |
| 143,796 |
|
| 400,936 |
|
Total comprehensive income | | |
| - |
|
| - |
|
| (40,096 |
) |
| 176 |
|
| 20,282 |
|
| (19,638 |
) |
|
| |
| |
| |
| |
| |
| |
Balance - March 31, 2008 | | |
| 29,638 |
|
| 235,608 |
|
| (46,853 |
) |
| (1,173 |
) |
| 164,078 |
|
| 381,298 |
|
|
| |
| |
| |
| |
| |
| |
|
|
|
|
|
|
|
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
H - 6
HOGLA-KIMBERLY LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(NIS in thousands)
|
Share capital
|
Capital
reserves
|
Foreign currency
translation
reserve
|
Accumulated other
comprehensive
income
|
Retained
earnings
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2008 |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| | |
Balance - January 1, 2007 | | |
| 29,638 |
|
| 235,608 |
|
| (6,757 |
) |
| (1,349 |
) |
| 143,796 |
|
| 400,936 |
|
Total comprehensive income | | |
| - |
|
| - |
|
| (52,096 |
) |
| 2,522 |
|
| 89,627 |
|
| 40,053 |
|
Balance - December 31, 2008 | | |
| 29,638 |
|
| 235,608 |
|
| (58,853 |
) |
| 1,173 |
|
| 233,423 |
|
| 440,989 |
|
|
| |
| |
| |
| |
| |
| |
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
H - 7
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
CONDENSED INTERIM CONSOLIDATED CASH FLOWS STATEMENTS
(NIS in thousands)
|
Three months ended
March 31,
|
Year ended
December 31,
|
|
2009
|
2008
|
2008
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Cash flows - operating activities |
|
|
| |
|
| |
|
| |
|
Profit for the period | | |
| 28,448 |
|
| 20,282 |
|
| 89,627 |
|
Adjustments to reconcile operating profit to net cash | | |
provided by operating activities (Appendix A) | | |
| (13,841 |
) |
| (30,196 |
) |
| 12,972 |
|
|
| |
| |
| |
Net cash generated by (used in) | | |
operating activities | | |
| 14,607 |
|
| (9,914 |
) |
| 102,599 |
|
|
| |
| |
| |
| | |
Cash flows - investing activities | | |
Acquisition of property plant and equipment | | |
| (13,669 |
) |
| (7,148 |
) |
| (53,334 |
) |
Proceeds from disposal of Property plant and equipment | | |
| 22 |
|
| 128 |
|
| 4,851 |
|
Repayment of capital note by shareholders | | |
| 32,770 |
|
| - |
|
| - |
|
Interest received | | |
| 127 |
|
| 205 |
|
| 1,525 |
|
|
| |
| |
| |
Net cash used in investing activities | | |
| 19,250 |
|
| (6,815 |
) |
| (46,958 |
) |
|
| |
| |
| |
| | |
Cash flows - financing activities | | |
Dividend paid | | |
| (32,770 |
) |
| - |
|
| - |
|
Borrowings received (paid) | | |
| (5,849 |
) |
| 77,098 |
|
| 82,947 |
|
Short-term bank credit | | |
| 4,371 |
|
| (52,896 |
) |
| (124,286 |
) |
Interest paid | | |
| (1,747 |
) |
| (1,225 |
) |
| (8,353 |
) |
|
| |
| |
| |
Net cash | | |
Provided by (used in) financing activities | | |
| (35,995 |
) |
| 22,977 |
|
| (49,692 |
) |
|
| |
| |
| |
| | |
Net increase in cash and cash equivalents | | |
| (2,138 |
) |
| 6,248 |
|
| 5,949 |
|
Cash and cash equivalents - beginning of period | | |
| 23,219 |
|
| 23,082 |
|
| 23,082 |
|
Effects of exchange rate changes on the | | |
balance of cash held in foreign currencies | | |
| (686 |
) |
| (3,140 |
) |
| (5,812 |
) |
|
| |
| |
| |
Cash and cash equivalents - end of period | | |
| 20,395 |
|
| 26,190 |
|
| 23,219 |
|
|
| |
| |
| |
|
|
|
|
The accompanying notes are an
integral part of the condensed interim consolidated financial statements.
H - 8
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
APPENDICES TO CONDENSED INTERIM CONSOLIDATED CASH FLOWS STATEMENTS
(NIS in thousands)
|
|
Three months ended
March 31,
|
Year ended
December 31,
|
|
|
2 0 0 9
|
2 0 0 8
|
2 0 0 8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A. |
Adjustments to reconcile operating profit to net |
|
|
| |
|
| |
|
| |
|
|
cash generated (used) by operating activities | | |
|
| | |
|
Finance expenses paid, net. | | |
| 1,620 |
|
| 1,020 |
|
| 6,828 |
|
|
Taxes on income recognized in profit and loss | | |
| 10,017 |
|
| 10,711 |
|
| 47,473 |
|
|
Depreciation and amortization | | |
| 5,951 |
|
| 6,956 |
|
| 24,367 |
|
|
Capital loss on disposal of property, plant and equipment | | |
| 461 |
|
| 280 |
|
| 2,878 |
|
|
Effect of discounting capital note to shareholder | | |
| - |
|
| (390 |
) |
| (1,560 |
) |
|
| | |
|
Changes in assets and liabilities: | | |
|
| | |
|
Decrease (Increase) in trade receivables | | |
| (50,949 |
) |
| (27,287 |
) |
| 5,465 |
|
|
Decrease (Increase) in other current assets | | |
| (3,055 |
) |
| 4,542 |
|
| 3,872 |
|
|
Decrease (Increase) in inventories | | |
| 7,954 |
|
| (12,298 |
) |
| (66,659 |
) |
|
Increase (decrease) in trade payables | | |
| 13,182 |
|
| (6,681 |
) |
| 18,407 |
|
|
Net change in balances with related parties | | |
| (1,150 |
) |
| 2,127 |
|
| 1,339 |
|
|
Increase (decrease) in other payables and accrued expenses | | |
| 8,729 |
|
| 2,944 |
|
| (1,073 |
) |
|
Decrease (increase) in other long term asset | | |
| 463 |
|
| (42 |
) |
| (9,163 |
) |
|
Change in employee benefit obligations, net | | |
| 2,790 |
|
| (366 |
) |
| 9,682 |
|
|
|
| |
| |
| |
|
| | |
| (3,987 |
) |
| (18,484 |
) |
| 41,856 |
|
|
|
| |
| |
| |
|
Income taxes received | | |
| - |
|
| - |
|
| 7,065 |
|
|
Income taxes paid | | |
| (9,854 |
) |
| (11,712 |
) |
| (35,949 |
) |
|
|
| |
| |
| |
|
| | |
| (13,841 |
) |
| (30,196 |
) |
| 12,972 |
|
|
|
| |
| |
| |
The accompanying notes are an integral
part of the condensed interim consolidated financial statements.
H - 9
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2008
NOTE 1 |
|
DESCRIPTION OF BUSINESS AND GENERAL |
|
A. |
Description
Of Business |
|
Hogla
Kimberly Ltd. (the Company) and its Subsidiaries are engaged principally in
the production and marketing of paper and hygienic products. The Companys results
of operations are affected by transactions with shareholders and affiliated companies. |
|
The
Company is owned by Kimberly Clark Corp. (KC or the Parent Company) (50.1%)
Hadera Paper Ltd. (49.9%). |
|
The Company |
|
Hogla-Kimberly Ltd. |
|
|
The Group |
|
the Company and its Subsidiaries. |
|
|
Subsidiaries |
|
companies in which the Company control, (as defined by IAS 27) directly or indirectly, and whose financial statements are fully consolidated with those of the Company. |
|
|
Related Parties |
|
as defined by IAS 24. |
|
|
Interested Parties |
|
as defined in the Israeli Securities Regulations (Presentation of Financial Statements), 1993. |
|
|
Controlling Shareholder |
|
as defined in the Israeli Securities law and Regulations 1968. |
|
|
NIS |
|
New Israeli Shekel. |
|
|
CPI |
|
the Israeli consumer price index. |
|
|
Dollar |
|
the U.S. dollar. |
|
|
YTL |
|
the Turkish New Lira. |
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
A. |
Applying
International Accounting Standards (IFRS) |
|
The
condensed interim financial statements have been prepared using accounting policies
consistent with International Financial Reporting Standards and in accordance with
International Accounting Standard (IAS) 34 Interim Financial Reporting. |
|
The
unaudited condensed interim consolidated financial statements as of March 31, 2009 and
for the three months then ended (interim financial statements) of the Company
and subsidiaries should be read in conjunction with the audited consolidated financial
statements of the Company and subsidiaries as of December 31, 2008 and for the year then
ended, including the notes thereto. |
H - 10
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2008
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
B. |
The condensed Financial Statements were prepared in accordance with section D of
the Israeli Securities Regulations (Periodic and Immediate Reports), 1970. |
|
C. |
Significant
accounting policies |
|
The
same accounting policies, presentation and methods of computation have been followed in
these condensed financial statements as were applied in the preparation of the Groups
financial statements for the year ended 31 December 2008, except for the impact of the
adoption of the Standards and Interpretations described below: |
|
IAS
1 (revised 2007) Presentation of Financial Statements |
|
The
revised Standard has introduced a number of terminology changes (including revised titles
for the condensed financial statements) and has resulted in a number of changes in
presentation and disclosure. According to the requirements of the standard the statement
of comprehensive income in presented in separate from the income statement. |
|
However,
the revised Standard has had no impact on the reported results of operations and the
financial position of the Group. |
|
D. |
Recent
Accounting Standards |
|
Amendment
to IFRS 7 Financial Instruments Disclosure |
|
The
amendments require enhanced disclosures about fair value measurements and liquidity risk,
by establishing a three level hierarchy for making fair value measurements. |
|
Entities
are required to apply the amendments for annual periods beginning on or after January 1,
2009, with earlier application permitted. |
|
At
this stage, the management of the Group estimated that the implementation of the
amendment is not expected to have any influence on the financial statements of the Group. |
|
Amendment
to IAS 17 Leases |
|
The
amendment determines that land and building leased will be classified in accordance to
general classification instructions to each component, therefore land leases from the
Israeli land administration could be classified as finance lease.
The amendment is
effective commencing January 1, 2010, early adoption is permitted. At this stage
management is examining the effect of this amendment on the groups financial
statements. |
H - 11
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2008
NOTE 2 |
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
|
D. |
Recent
Accounting Standards (cont.) |
|
Annual
improvements issued by the IASB |
|
The
definitions of short-term and other long-term employee benefits, as Defined in IAS 19
Employee Benefits were amended as part of the May 2008 annual improvements
issued by the IASB. |
|
According
to the amendment, the unused compensated absences should be classified as a short-term
benefit in accordance with IAS 19 and will be presented as a current liability in the
statement of financial position. |
|
Effective
from 1 January 2009, the company measures the expected cost of unused, accumulated
compensated absences as the amount that the entity expects to pay as a result of the
unused entitlement that has accumulated at the end of the reporting period. |
|
For
the affect of the amendment on the companys results and financial position for31
December 31 2008, 31 March 2008 and the periods then ended see note 7. |
|
E. |
Exchange
Rates and Linkage Basis |
|
Following
are the changes in the representative exchange rates of the U.S. dollar vis-a-vis the NIS
and the Turkish Lira and in the Israeli Consumer Price Index (CPI): |
|
As of:
|
Turkish Lira
exchange rate
vis-a-vis the U.S.
dollar
(TL'000 per $1)
|
Representative
exchange rate of
the dollar
(NIS per $1)
|
CPI
in respect of
(in points)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2009 |
|
|
| 1,687 |
|
| 4.1880 |
|
| 110.29 |
|
|
March 31, 2008 | | |
| 1,334 |
|
| 3.553 |
|
| 106.50 |
|
|
December 31, 2008 | | |
| 1,521 |
|
| 3.802 |
|
| 110.44 |
|
|
Increase (decrease) during the:
|
%
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31, 2009 |
|
|
| 10.9 |
|
| 10.15 |
|
| (0.14 |
) |
|
Three months ended March 31, 2008 | | |
| 13.4 |
|
| (7.62 |
) |
| 0.10 |
|
|
Year ended December 31, 2008 | | |
| 29.38 |
|
| (1.14 |
) |
| 3.8 |
|
NOTE 3 |
|
SEGNIFICANT TRANSACTIONS AND EVENTS |
|
1. |
Hogla-Kimberly
issued one preference Share to Hadera Paper Ltd, which gives Hadera Paper
the right to receive special dividends according to the decision of the
Board from time to time. |
|
On
March 19, 2009 Hogla-Kimberly distributed dividend in the amount of NIS 32.77 million to
the holder of the preference share. |
|
2. |
On
March 19, 2009 Hadera Paper Ltd repaid the capital note to the company in the
amount of NIS 32.77 million. |
H - 12
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2008
NOTE 3 |
|
SEGNIFICANT TRANSACTIONS AND EVENTS (Cont.) |
|
3. |
On
February 26, 2009 the board of directors decided to distribute Dividend
in the amount of Dollar 10 million from the unapproved enterprise retained
earnings of 2008 to the holders of the ordinary shares. |
NOTE 4 |
|
RELATED PARTIES AND INTERESTED PARTIES |
|
A. |
Balances
with Related Parties |
|
|
March 31,
|
December 31,
|
|
|
2009
|
2008
|
2008
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables |
|
|
| 36,228 |
|
| 24,295 |
|
| 30,212 |
|
|
|
| |
| |
| |
|
Capital note - shareholder | | |
| - |
|
| 31,600 |
|
| 32,770 |
|
|
|
| |
| |
| |
|
Trade payables | | |
| 91,848 |
|
| 58,851 |
|
| 79,683 |
|
|
|
| |
| |
| |
|
|
|
|
|
|
B. |
Transactions
with Related Parties |
|
|
Three months ended
March 31,
|
Year ended
December 31,
|
|
|
2009
|
2008
|
2008
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales to related parties |
|
|
| 67,299 |
|
| 45,076 |
|
| 216,841 |
|
|
|
| |
| |
| |
|
Cost of sales | | |
| 82,562 |
|
| 46,311 |
|
| 268,476 |
|
|
|
| |
| |
| |
|
Royalties to the shareholders | | |
| 8,030 |
|
| 7,523 |
|
| 29,584 |
|
|
|
| |
| |
| |
|
General and administrative expenses | | |
| 3,331 |
|
| 2,980 |
|
| 12,488 |
|
|
|
| |
| |
| |
|
|
|
|
|
NOTE 5 |
|
INCOME TAX CHARGE |
|
The
effective tax rate for the three months period ended March 31, 2009 is 26%. |
NOTE 6 |
|
RECLASSIFICATION |
|
Comparative
figures as of march 31, 2008 were reclassified in these financial statements as follows: |
|
1. |
NIS
20,535 thousand were reclassified from other payables and accrued expenses
to trade receivables. |
|
2. |
NIS
2,040 thousand were reclassified from other current assets to trade
payables. |
|
3. |
NIS
974 thousand were reclassified from other payables and accrued expenses to
employee benefit obligations in non-current liabilities, and NIS 10,323
thousand were reclassified from other payables and accrued expenses to
employee benefit obligations in current liabilities. |
H - 13
HOGLA-KIMBERLY LTD. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED INTERIM CONSOLIDATED
FINANCIAL STATEMENTS AS OF MARCH 31, 2008
NOTE 7 |
|
EFFECT OF IAS 19 AMENDMENT |
|
NIS
9,433 thousand were reclassified from employee benefit obligations in non-current
liabilities to employee benefit obligations in current liabilities. |
H - 14