Climate Change Data

Environmental Metrics

Social Achievements

• An employee share option scheme was adopted on October 26, 2006 which enables employees to share directly in the success of the Company.
• The Company has 181 employees and other persons providing similar services. The Company’s employees are vital to its ongoing success. It is therefore important that all levels of staff are involved in its decision-making processes. To this end, the Company has an open culture and flexible structure, and staff are encouraged formally and informally to become involved in discussions on the Company’s future strategy and developments.

Governance Achievements

• The Company is committed to high standards of Corporate Governance, in order to maintain the trust of the Company’s shareholders and other stakeholders.

Climate Goals & Targets

Environmental Challenges

• The financial turmoil of 2008 continued, albeit at a slower pace, throughout 2009. However, given the measures undertaken since the onset of the credit crunch, we have emerged financially secure and have this year been able to progress with our targeted development and acquisition program.
• The continuing slow down in the real estate market worldwide and the non-cash financial expenses resulting from the fair value adjustments of bonds and from the impairment of the Company’s assets held as trading property
• The current economic downturn has restricted Plaza’s access to debt and equity capital markets although Plaza’s existing financial strength and established track record has enabled it to raise both development finance and issue further bonds in the public markets in Israel.
• A prolonged restriction on accessing the capital markets and additional financing may negatively affect Plaza’s ability to fund existing and future development projects.

Mitigation Strategies

• Given the measures that we have undertaken since the onset of the credit crunch, we have emerged financially secure and have this year been able to progress with our targeted development and acquisition program.
• Plaza raised gross proceeds of approximately €90 million from debenture issues to Israeli institutional investors between August 2009 and February 2010.
• Plaza has benefited from its rare position of being an experienced CEE developer backed by substantial financial flexibility and firepower to make acquisitions at attractive prices.
• Plaza has benefited from its rare position of being an experienced CEE developer backed by substantial financial flexibility and firepower to make acquisitions at attractive prices. It invested a total of €15 million in cash across three projects since January 2009.
• Plaza’s existing financial strength and established track record has enabled it to raise both development finance and issue further bonds in the public markets in Israel.
• Development financing was secured for 50% of Koregaon Park development project in Pune, India (Total financing of INR 220 Crore, circa US$45 million).
• The Company continues to have a strong cash position (including restricted deposits, short-term deposits and available for sale financial assets) of approximately €179 million at the period end (and circa €240 million as at today’s date following the recent bond issuance), ensuring the Company remains on a solid financial footing to continue its development program and make opportunistic investments or acquisitions where there is clear potential to create shareholder value.
• Plaza is making big efforts to raise external financing for capital needs and continues to investigate different forms of financing.
• additional financing for a further two new developments located in Poland and Serbia is expected to be finalized in the near future.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global financial and economic developments impacting project development, profitability, and cash flows; Real estate market dependence affecting capital gains; Subjective and uncertain real estate valuations; Significant capital needs and potential financing limitations; Indian government investment limitations.

Mitigation Strategies

• Cost reduction measures, focus on cash-generating activities, conservative gearing, development restriction to best opportunities, holding developments as yielding assets until sufficient sale prices are achieved, thorough due diligence and local legal advice in India, maintaining a strong balance sheet and hedging financial risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: KPMG Hungária Kft.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Social Achievements

• Improved occupancy and turnover across the Company’s existing shopping and entertainment centers in CEE, with the overall portfolio occupancy level increasing to 94% as of the year end, reflecting successful asset management initiatives at Torun Plaza, Riga Plaza, Suwalki Plaza and Zgorzelec Plaza. During 2014 NOI increased by 3.5%.

Governance Achievements

• Successfully completed the restructuring process midway through the year, with resounding support from its creditors. This was followed by the completion of a successful rights offering, which provided Plaza with a €20 million capital injection and marked an important final step in the restructuring process. A third listing on the Tel Aviv Stock Exchange and the recent upgrade in Plaza’s credit rating from the Israeli division of Standard & Poor’s (from “D” to “BBB-”, on a local Israeli scale, with a stable outlook), have further underlined the achievements of the year and strengthened the Company’s position.

Climate Goals & Targets

Environmental Challenges

• Challenging economic conditions in the CEE
• Underperforming assets (e.g., Koregaon Park Plaza)
• High debt levels
• Liquidity concerns

Mitigation Strategies

• Disposal of non-core assets
• Debt restructuring
• Rights offering
• Improved asset management
• Cost reduction initiatives
• Focus on core assets in CEE

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Governance Achievements

• Implemented a debt restructuring plan approved by the Dutch court.
• Reduced central and finance costs.

Climate Goals & Targets

Environmental Challenges

• Debt restructuring and high gearing.
• Impairment losses on several projects (Casa Radio, Timisoara, etc.).
• Slow economic recovery in CEE and India.
• Difficulties in selling completed properties at expected prices.
• Lack of available finance for development.
• Potential irregularities in certain contracts (Casa Radio, US property sale).
• Uncertainty regarding the Casa Radio project in Romania (PPP agreement, potential penalties).
• Material uncertainty related to going concern.
• Delays in publishing financial statements.

Mitigation Strategies

• Disposal of non-core assets to reduce debt and generate cash.
• Cost reduction measures (manpower, suppliers, advisors).
• Debt repayment agreement with financing bank of Zgorzelec Plaza.
• Acquisition of bank loan at a significant discount.
• Seeking third-party investors for Casa Radio project.
• Cooperation with Romanian authorities regarding potential irregularities.
• Implementation of a specific policy to prevent reoccurrence of similar issues.
• Reviewing financing options to achieve an effective debt profile.
• Actively pursuing sales opportunities to generate cash.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant doubts regarding the Company’s ability to serve its entire debt according to the current repayment schedule.
• Default of purchaser of Bangalore project to meet payments.
• Default of purchaser of Chennai Project to complete the sale transaction.
• Non-compliance with Coverage Ratio Covenant (CRC).
• Non-maintenance of Minimum Cash Reserve Covenant (MCRC).
• Material uncertainty that casts significant doubt about the Company's ability to continue as a going concern.
• Legal proceedings and potential irregularities related to Casa Radio project in Romania.
• Potential related party transaction issues related to the 2012 disposal of the US portfolio.

Mitigation Strategies

• Asset disposals and cost reduction measures to reduce debt.
• Negotiations with purchasers and upward adjustment of purchase prices.
• Implementation of the amended restructuring plan.
• Reviewing financing options.
• Strengthening financial controls and corporate governance.
• Full cooperation with Romanian authorities regarding Casa Radio irregularities.
• Investigation and examination of issues related to the 2012 US portfolio disposal.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Baker Tilly Berk N.V. B.V.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Governance Achievements

• Developed an environmental sustainability policy (to be adopted in H2 2022)

Climate Goals & Targets

Environmental Challenges

• Limited data for risk analysis due to small scale of operations.
• Potential for increased maintenance expenses on two plots due to extreme weather events.

Mitigation Strategies

• Further risk study advised for company plots.
• Environmental sustainability policy to integrate environmental considerations into business decisions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased maintenance expenses due to extreme weather (damage to company plots)

Transition Risks

• Regulatory changes affecting reporting

Reporting Standards

Frameworks Used: TCFD