Israel Corp. Reports Results for Fourth Quarter of 2021

Rhea-AI Summary

Israel Corporation Ltd. (TASE: ILCO) reported its fourth quarter and annual results for 2021, demonstrating significant financial movements. In Q4 2021, the company recorded a net profit of $160 million compared to a loss of $14 million in Q4 2020, with a yearly profit of $88 million versus a loss of $173 million in 2020. Key figures include a net debt of $951 million, down from $998 million in Q3 2021, and substantial shares in ICL and Bazan Group. IC's total assets net stood at $5.002 billion at year-end.

Positive

• Q4 2021 net profit of $160 million, a substantial increase from a loss of $14 million in Q4 2020.
• Annual profit for 2021 reached $88 million, recovering from a loss of $173 million in 2020.
• Reduced net debt from $998 million in Q3 2021 to $951 million by year-end 2021.

Negative

• Significant losses in Bazan Group, with a reported loss in Q4 2021 of $24 million compared to a previous loss of $22 million.
• Amortization of excess costs and impairment reversal showed negative financial impacts totaling $8 million and $262 million respectively over 2021.

TEL AVIV, Israel, March 25, 2022 /PRNewswire/ -- Israel Corporation Ltd. (TASE: ILCO) ("IC") announced today its fourth quarter and annual results for the period ending December 31, 2021.

Selected Financial Figures for the fourth Quarter and 2021:

$m	Q4/21	Q4/20	2021	2020
IC share in ICL profit	129	30	357	6
IC share in Bazan profit (loss)	24	(22)	78	(91)
Amortization of excess cost	(1)	(3)	(8)	(9)
Reversal of Impairment (Impairment) of Bazan Investment	19	-	(262)	-
Financing, G&A and other expenses at IC headquarter level	(11)	(20)	(77)	(79)
Tax Expenses of IC Headquarters	-	1	-	-
Net Profit (Loss) to company's shareholders	160	(14)	88	(173)

Debt Balances and Liquidity at the IC Headquarters Level¹

As of December 31, 2021, total financial liabilities¹ were $1,599 million, and investments in liquid assets amounted to $583 million of which $8 are pledged deposits.

Net debt¹ as of December 31, 2021, totaled $951 million. The net debt includes the fair value of derivative transactions, which reduces the economic value of the financial liabilities in the amount of $70 million, and the fair value of the Bazan call options² which increases the economic value of the financial liabilities by $5m. As of September 30, 2021, the net debt¹ was $998m.

Additional updates

On October 21, 2021, IC completed an investment of ~NOK 637m (~$74m) in AKAV Group ASA (OB: AKVA), a leading technology provider for the aquaculture sector, with NOK 322m (~$38m) in share issuance and NOK 315m (~$36m) from existing shareholders, for a c.18% stake.

On November 11, 2021, IC completed a share sale of 9% of Bazan Group to qualified investors for ~$85m together with options for additional stake of 7.3%, granted to the investors for no consideration, with exercise price of NIS 1.15 with maturity of 22 months. Currently IC holds c. 24% in Bazan.

On March 9, 2022, IC completed a sale of ~1.5% of ICL outstanding shares to international and Israeli institutional investors for a total consideration of ~$220m, post the sale IC holds 44.1% in ICL.

As a holding company, the financial results of IC are mainly affected by the results of its held companies. For more details see detailed financial report.

IC Total Assets, Net

$m	31/12/2021
Assets
ICL (~587m shares, market value3,4)	5,666
Bazan (~796m shares, market value3)	221
Akva Group (market value)	66
Total Assets	5,959
IC's Net Debt	951
Total Assets, net	5,002

About Israel Corporation

Israel Corporation Ltd. (TASE: ILCO) ("IC") is a reputable public investment company, which owns and invests in high quality companies with established managements and go-to markets.

In November 2019, IC announced its updated strategy, IC plans to expand its portfolio through new investments over the next few years. IC plans to focus mainly on the food (inc. tech), agriculture (inc. tech), healthcare and industry 4.0 sectors. For more details please see the following link to IC updated Strategy Presentation

IC strives to generate return on its investment through active board participations and its operational and managerial expertise.

IC current core holdings include c.44% stake in ICL Group (NYSE:ICL, TASE:ICL), a c.24% stake in the Bazan Group (TASE:ORL) and c.18% stake in AKVA Group (OB:AKVA). IC is publicly traded on the Tel Aviv Stock Exchange under the ticker ILCO and is included in the TA-35 Index.

For further information on IC, see IC's publicly available filings, which can be found on the Tel Aviv Stock Exchange website at http://maya.tase.co.il.

Please also see IC company website http://www.israelcorp.com for additional information.

Convenience Translation

The financial information found in this press release is an English summary based on the original Hebrew financial statements and is solely for the convenience of the reader. The binding version is the original in Hebrew.

Forward Looking Statements

This press release may contain forward-looking statements, which may not materialize and are subject to risks and uncertainties that are not under the control of IC, which may cause actual results to differ materially from those contained in the disclosures.

Investor Relations Contacts
Idan Hizki
Vice President, Business Development & Investor Relations
Tel: +972 3 684 4500
idanh@israelcorp.com

[1] Israel Corp and its wholly owned and controlled headquarter companies.
[2] On November 11, 2021, IC completed a share sale of 9% of Bazan Group to qualified investors for ~$85m together with options for additional stake of 7.3%, granted to the investors for no consideration, with exercise price of NIS 1.15, adjusted for dividends, with maturity of 22 months. Currently IC holds c. 24% in Bazan
[3] As of December 31, 2021.
[4] On March 9, 2022, IC completed a sale of ~1.5% ICL outstanding shares to international and Israeli institutional investors, post the sale IC holds 44.1% in ICL

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SOURCE Israel Corporation Ltd.

FAQ

What are the financial results of Israel Corporation for Q4 2021?

Israel Corporation reported a net profit of $160 million for Q4 2021, compared to a loss of $14 million in Q4 2020.

How did Israel Corporation perform in 2021 compared to 2020?

In 2021, Israel Corporation posted a net profit of $88 million, a significant improvement from a loss of $173 million in 2020.

What is the net debt of Israel Corporation as of December 31, 2021?

As of December 31, 2021, Israel Corporation's net debt totaled $951 million.

What were the challenges faced by Israel Corporation in 2021?

Israel Corporation reported significant losses in Bazan Group, impacting quarterly results and a notable impairment of $262 million.

What is the total assets net for Israel Corporation as of end of 2021?

Israel Corporation's total assets net stood at $5.002 billion at the end of 2021.