Gazit-Globe Ltd (ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory)

NOTE 40:-

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

Condensed statements of financial position

	December 31
	2017		2016
	NIS in millions

ASSETS

CURRENT ASSETS
Cash and cash equivalents		94		510
Short-term loans and current maturities of long-term loans to subsidiaries		611		29
Financial derivatives		97		67
Other accounts receivable		7		2

Total current assets		809		608

NON-CURRENT ASSETS
Financial derivatives		300		490
Loans to subsidiaries		4,520		5,723
Investments in subsidiaries		8,428		9,042
Fixed assets, net		3		3

Total non-current assets		13,251		15,258

Total assets		14,060		15,866

	December 31
	2017			2016
	NIS in millions
LIABILITIES AND EQUITY

CURRENT LIABILITIES
Current maturities of non-current liabilities		1,297			1,104
Short-term loans from subsidiaries		50			-
Financial derivatives		16			36
Trade payables		3			5
Other accounts payable		161			275
Current tax payable		56			43
Dividend declared		68			-

Total current liabilities		1,651			1,463

NON-CURRENT LIABILITIES
Loans from banks and others		2,258			2,634
Long-term loans from subsidiaries		225			-
Debentures		8,786			10,128
Deferred taxes		-			1

Total non-current liabilities		11,269			12,763

EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY
Share capital		246			249
Share premium		4,914			4,992
Reserves		16			(3	)
Accumulated losses		(4,036	)		(3,598	)

Total equity		1,140			1,640

Total liabilities and equity		14,060			15,866

Condensed profit or loss statements

	Year ended December 31
	2017			2016			2015
	NIS in millions

Dividend income		206			244			167
Management fees from related companies		3			3			2
Finance income from subsidiaries		170			210			242
Other finance income		258			4			1,133

Total income		637			461			1,544

General and administrative expenses		61			68			53
Finance expenses		582			815			492
Exchange differences on loans to investees		-			159			391
Other expenses		137			7			-

Total expenses		780			1,049			936

Income (loss) before taxes on income		(143	)		(588	)		608
Taxes on income		22			12			55

Net income (loss) attributed to the Company		(165	)		(600	)		553

Condensed statements of cash flows

	Year ended December 31
	2017			2016			2015
	NIS in millions
Cash flows from operating activities of the Company:

Net income (loss) attributed to the Company		(165	)		(600	)		553

Adjustments required to present net cash provided by (used in) operating activities of the Company:

Adjustments to profit and loss items of the Company:

Depreciation		1			6			2
Dividend income		(206	)		(244	)		(167	)
Finance expenses (income), net		154			760			(492	)
Capital loss		132			-			-
Cost of share-based payment		11			9			3
Taxes on income (tax benefit)		22			12			55

		114			543			(599	)
Changes in assets and liabilities of the Company:

Increase in other accounts receivable		(4	)		1			-
Decrease in trade payables and other accounts payable		13			(11	)		(26	)

		9			(10	)		(26	)
Cash paid and received during the year by the Company for:

Interest paid		(694	)	(522	)		(649	)
Interest received from subsidiaries		115			152			217
Taxes paid		(11	)		(16	)		(11	)
Taxes received		2
Dividends received		-			-			3
Dividends received from subsidiaries		206			244			164

		(382	)		(142	)		(276	)

Net cash used in operating activities of the Company		(424	)		(209	)		(348	)

	Year ended December 31
	2017			2016			2015
	NIS in millions
Cash flows from investing activities of the Company:

Acquisition of fixed assets		(4	)		(1	)		-	*)
Proceeds from sale of fixed assets		-	*)		-			-	*)
Investments in subsidiaries		(129	)		(268	)		(2,215	)
Redemption of preferred shares of subsidiary		612			404			271
Loans repaid by (grant to) subsidiaries, net		953			(438	)		154
Proceeds from sale of (investment in) marketable securities, net		55			2			182

Net cash provided by (used in) investing activities of the Company		1,487			(301	)		(1,608	)

Cash flows from financing activities of the Company:

Issue of shares (less issue expenses)		-			-			586
Exercise of stock options into shares		-	*)		-	*)		-	*)
Repayment of loans for purchase of company shares		-	*)		-	*)		-	*)
Purchase of treasury shares		(73	)		-			-
Dividends paid to equity holders of the Company		(204	)		(295	)		(328	)
Issue of debentures (less issue expenses)		-			-			2,183
Repayment and early redemption of debentures		(1,140	)		(691	)		(969	)
Receipt (repayment) of long-term credit facilities from banks, net		(43	)		1,371			1,102
Payment of long-term loan from institution		(13	)		-			-
Unwinding of hedging transactions		-			3			-

Net cash provided by (used in) financing activities of the Company		(1,473	)		388			2,574

Exchange differences on balance of cash and cash equivalents		(6	)		(29	)		(2	)

Increase (decrease) in cash and cash equivalents		(416	)		(151	)		616
Cash and cash equivalents at the beginning of year		510			661			45

Cash and cash equivalents at the end of year		94			510			661

Significant non-cash activities of the Company:

Exchange of loan granted to subsidiaries for capital issuance		-			375			-
Dividend declared		68			-			-

Represents an amount lower than NIS 1 million.

Note A – Basis of presentation -

The condensed financial information of the parent company (the “Solo report”) is prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). In the Solo report the investment in subsidiaries is stated at its deemed cost according to IAS 27. Accordingly, the Company does not record equity income from its subsidiaries in the Solo report. Dividends from subsidiaries are recorded as income in the condensed profit or loss statements.

Note B – Non-current liabilities -

Non-current debt attributed to the Company

Composition

	December 31
	2017		2016
	NIS in millions

Loans from banks and others (1) (3)		2,258		2,634
Debentures (2) (3)		8,786		10,128

		11,044		12,762

(1)

Composition of banks credit

	Effective		December 31
	interest		2017			2016
Denomination	%		NIS in millions

In NIS – unlinked*)		3.48%		-			205
In U.S.$*)		3.67%		1,282			1,531
In U.S.$		5.52%		255			294
In C$*)		3.20%		356			70
In €*)		2.69%		416			579

				2,309			2,679
Less - deferred finance costs				(19	)		(21	)

				2,290			2,658

Less - current maturities				(32	)		(24	)

				2,258			2,634

*) Variable interest

To secure credit obtained from banks, the Company and its wholly-owned subsidiaries have pledged shares of investees. Furthermore, the Company’s wholly-owned subsidiaries guarantee the credit obtained by the Company from banks.

As for financial covenants, refer to Note 21.d.

(2)

As for the composition of the debentures, refer to Note 19.a.

Debentures (Series J) are secured by a lien recorded on properties owned by a subsidiary of the Company, with aggregate fair value as of the reporting date amounted of NIS 1,176 million.

(3)

Maturities

	Loans from banks and others		Debentures
	NIS in millions

Year 1 - current maturities		32		1,265

Year 2		1,470		1,489
Year 3		156		1,158
Year 4		473		975
Year 5		159		711
Year 6 and thereafter		-		4,453
		2,258		8,786

		2,290		10,051

(2)

As for debentures (Series M) issued after the reporting period, refer to Note 19 above.

Note C - Contingent liabilities -

As for guarantees, refer to Note 26.b(3) above.

As for legal claims, refer to Note 26.d above.

Note D - Dividends from subsidiaries -

Dividends declared and received from subsidiaries:

	Year ended December 31
	2017		2016		2015
	NIS in millions

Citycon OYJ		206		244		164

Gazit-Globe Ltd | CIK:0001379009 |

ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory