NOTE 1: -  CORPORATE INFORMATION  

a.       Plaza Centers N.V. ("the Company" and together with its subsidiaries, "the Group") was incorporated and is registered in the Netherlands.  The Company's registered office is at Pietersbergweg 283, 1105 BM, Amsterdam, the Netherlands. In the past the Company conducted its activities in the field of establishing, operating and selling of shopping and entertainment centres, as well as other mixed-use projects (retail, office, residential) in Central and Eastern Europe (starting 1996) and India (from 2006). Following debt restructuring plan approved in 2014 the Group's main focus is to reduce corporate debt by early repayments following sale of assets and to continue with efficiency measures and cost reduction where possible.

The condensed interim consolidated financial statements for each of the periods presented comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interest in jointly controlled entities.

The Company is listed on the premium segment of the Official List of the UK Listing Authority and to trading on the main market of the London Stock Exchange ("LSE"), the Warsaw Stock Exchange ("WSE") and on the Tel Aviv Stock Exchange ("TASE"). 

The Company's immediate parent company was Elbit Ultrasound (Luxemburg) B.V. / s.a.r.l ("EUL"), which held 44.9% of the Company's shares, till December 19, 2018 when EUL informed that it has signed a trust agreement according to which EUL will deposit its shares of the Company with a trustee and no longer considers itself to be the controlling shareholder of the Company. At the date of approval of these financial statements EUL held 20.55% of the Company's shares (please refer to note 7(a) regarding the sale of app. 2.67% of the Company's shares held by EUL).

b.      Going concern and liquidity position of the Company:

As of June 30, 2022, the Company's outstanding obligations to bondholders (including accrued interests) are app. EUR 126.6 million due date of which was postponed to January 1, 2023 (the "Current Due date") (please refer to Note 7(e)).

Due to the above the Company's primary need is for liquidity. The Company's current and future resources include the following:

1.  Cash and cash equivalents (including the cash of fully owned subsidiaries) of approximately EUR 3.2 million.

2.  The Company and AFI Europe N.V. ("AFI Europe") entered into an addendum to the pre-sale agreement entered into between the Parties in connection with the sale of its subsidiary (the "SPV") which holds 75% in the Casa Radio Project (the "Project") (the "Addendum" and the "Agreement", respectively) pursuant to which the Parties agreed to extend the Long Stop Date, which is the date on which the parties will execute a share purchase agreement, subject to the satisfaction of conditions precedent (the "SPA"), until December 31, 2022. The addendum was approved by the bondholders meeting held on November 25, 2021. There can be no certainty that the SPA will eventually be executed and/or that the transaction will be consummated as presented above or at all.

3.  Following the default of purchaser of Bangalore project to meet payments schedule   according to the signed amendment agreement (refer to Note 6) there can be no certainty that the agreement will be completed, hence at this time no resources are expected to be available in forceable future.

NOTE 1: -  CORPORATE INFORMATION (Cont.)

As of June 30, 2021, the Company is not in compliance with the main Covenants as defined in the restructuring plan (for more details refer also to Note 8 of the annual financial statements as of December 31, 2020), hence under defaulted which could also trigger early repayment clause by the bondholders.

Due to the abovementioned and due to the board and management estimation that the Company is unable to serve its entire debt on the Current Due Date, the Company intends to request the bondholders of both series an additional postponement of the repayment of the remaining balance of the bonds. However, there is an uncertainty if the bondholders will approve the request. In the case that the bondholders would declare their remaining claims to become immediately due and payable, the Company would not be in a position to settle those claims and would need to enter to an additional debt restructuring or might cease to be a going concern basis.

Due to the abovementioned conditions a material uncertainty exists that casts significant doubt about the Company's ability to continue as a going concern.

The interim condensed consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will be able to meet the mandatory repayment obligations of its bonds and other working capital requirements.

c.       Impact of the Covid-19

The risks associated with the Covid-19 global health and economic crisis may affect the Company indirectly, through possible regulatory changes and the impact on the macroeconomic environment, which may affect the conducted activities which are concentrated at selling of the assets. The Company monitors the consequences of the event and the actions taken in countries in which it operates and assesses the risks and exposures arising from these consequences.

d.      The effects of the Russia-Ukraine war:

In February 2022, a war broke out between Russia and Ukraine which is ongoing and continues to cause numerous casualties, damages to infrastructure and disruption of the Ukraine economy. In response, several countries (including the U.S., the UK and the EU) imposed economic sanctions against certain Russian and Russian related entities and individuals around the world and various sanctions have also been imposed on Belarus. These sanctions are likely to directly impact those entities and individuals and indirectly affect third parties which have business affiliations with those entities and individuals as well as certain industries in Russia and Belarus.

Potential fluctuations in commodity prices and foreign exchange rates, import and export restrictions, availability of local materials and services and access to local resources are all liable to affect entities that have significant operations or exposures in or with Russia, Belarus or Ukraine.

NOTE 2: -  BASIS OF PREPARATION

a.       Basis of preparation of the interim condensed consolidated financial data:

The interim condensed consolidated financial data for the six months period ended June 30, 2022 have been prepared in accordance with the International Financial Reporting Standard IAS 34 ("Interim Financial Reporting") as adopted by the European Union.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as of 31 December 2021. These interim condensed consolidated financial statements as of June 30, 2022 have been neither audited nor reviewed by the Company's auditors.

The financial information for the half year ended 30 June 2021 has neither been audited nor reviewed by the auditors.

Selected explanatory notes are, however, included to explain events and transactions that are significant to understanding the changes in the Group's financial position and performance since the last annual consolidated financial statements as of and for the year ended December 31, 2021.

The interim condensed consolidated financial statements as of June 30, 2021 were authorized by the Board of Directors on 30 August 2022.

b.      New standards, interpretations and amendments adopted by the Group:

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2021, except for the adoption of new standards effective as of 1 January 2022. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Amendment to IAS 37, "Provisions, Contingent Liabilities and Contingent Assets":

In May 2020, the IASB issued an amendment to IAS 37, regarding which costs a company should include when assessing whether a contract is onerous ("the Amendment").

According to the Amendment, costs of fulfilling a contract include both the incremental costs (for example, raw materials and direct labour) and an allocation of other costs that relate directly to fulfilling a contract (for example, depreciation of an item of property, plant and equipment used in fulfilling the contract).

The Amendment is effective for annual periods beginning on or after January 1, 2022 and applies to contracts for which all obligations in respect thereof have not yet been fulfilled as of January 1, 2022. The application of the Amendment does not require the restatement of comparative data. Instead the opening balance of retained earnings on the date of initial application date is adjusted for the cumulative effect of the Amendment.

The application of the Amendment did not have a material impact on the Company's interim financial statements.

NOTE 2: -  BASIS OF PREPARATION (Cont.)

Annual improvements to IFRSs 2018-2020:

In May 2020, the IASB issued certain amendments in the context of the Annual Improvements to IFRSs 2018-2020 Cycle. The main amendment is to IFRS 9, "Financial Instruments" ("the Amendment"). The Amendment clarifies which fees a company should include in the "10% test" described in paragraph B3.3.6 of IFRS 9 when assessing whether the terms of a debt instrument that has been modified or exchanged are substantially different from the terms of the original debt instrument.

According to the Amendment, fees paid net of any fees received that are included in the cash flows are only those fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other's behalf.

The Amendment is effective for annual periods beginning on or after January 1, 2022. The Amendment is applied to financial liabilities that are modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the Amendment that is from January 1, 2022.

c.       Disclosure of new standards in the period prior to their adoption:

There are currently no amendments to existing standards and/or newly issued standards other than those disclosed in the annual consolidated financial statements.

NOTE 3: -  USE OF JUDGEMENT AND ESTIMATES

In preparing this interim condensed consolidated financial information, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this interim condensed consolidated financial information, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were principally the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2021, save for the changes highlighted above. Refer also to Note 1(b) above for significant estimations performed.

NOTE 4: -  FINANCIAL INSTRUMENTS

Carrying amounts and fair values

In respect to the Company's financial instruments assets not presented at fair value, being mostly short-term market interest bearing liquid balances, the Company believes that the carrying amount approximates its fair value. In respect of the Company's financial instruments liabilities:

Fair value of the quoted debentures is based on price quotations at the reporting date and is classified as Level 1 in the fair value hierarchy.

NOTE 4: -  FINANCIAL INSTRUMENTS (Cont.)

The total contractual liability of the Debentures was EUR 126.6 million as of June 30, 2022.

NOTE 5: - CASA RADIO

a.   Following Note 5(2)(c) to the annual financial statements relating the discussions with the Romanian authorities, there have been no significant events since the publication of the annual financial statements as of December 31, 2021.

b.   Following Note 5(2)(e) to the annual consolidated  financial statements as of December 31, 2021 which discloses that the The Company and AFI Europe N.V. ("AFI Europe") entered into an addendum to the pre-sale agreement entered into between the Parties in connection with the sale of its subsidiary (the "SPV") which holds 75% in the Casa Radio Project (the "Project") (the "Addendum" and the "Agreement", respectively) pursuant to which the Parties agreed to extend the Long Stop Date, which is the date on which the parties will execute a share purchase agreement, subject to the satisfaction of conditions precedent (the "SPA"), until December 31, 2022. The addendum was approved by the bondholders meeting held on November 25, 2021.

Following the above, the Parties continue their attempts to receive the authority's approval in order to be able to execute the SPA, still there has been no progress since the pre-sale has been signed. In light of the above the Company is exploring all its options in order to obtain progress, including among others its legal options. For details regarding an Engagement letter with a law firm in London in connection with the legal proceedings in the "Casa Radio" project refer to Note 18(b) to the annual consolidated financial statements as of December 31, 2021. For details regarding the issuance of a notice of dispute and acceptance of offer and consent to arbitrate to Romania with respect to the "Casa Radio" project refer to Note 7(c). Accordingly, as of May 16, 2022 the Company has submitted with International Centre for Settlement of Investment Disputes (the "Centre") a Request for Arbitration (the "Request") against Romania. The Request was registered by the Centre on June 3, 2022. Further to the Centre's registration of the Request and pursuant to Rule 2(1)(a) of the Rules of Procedure for Arbitration Proceedings (the "Arbitration Rules"), the Company set out Romania proposal with respect to the number of arbitrators and the method for their appointment in these proceedings. At the current stage, the Company and Romania are in the process of agreeing above mentioned proposal.

Due to the above, there can be no certainty that the SPA will eventually be executed and/or that the transaction will be completed.

NOTE 5: - CASA RADIO (Cont.)

c.   Write-down of trading properties:

As detailed in the annual consolidated financial statements, the value of the trading property of the Project was fully reduced (for more details refer to Note 5(3) to the annual consolidated financial statements as of December 31, 2021).

Still, the Company believes that despite this reduction there is no change in the value of the Company's rights under the PPP Agreement. In addition, management, believes that in case they will decide to pursue it material economic damage, the Company has a good case to claim compensation for such damages.

On the other hand, if the Company comes to an understanding with the Romanian authorities, it will measure the Casa Radio NRV to reflect its updated financial projections.

NOTE 6:-   EQUITY ACCOUNTED INVESTEES

Material events and updates during the reporting period:

         Bangalore:

Following Note 6(b)(1) to the annual consolidated financial statements regarding the agreement (the "Sale Agreement") between Elbit Plaza India Real Estate Holdings Limited (a subsidiary held by the Company (50%) and Elbit Imaging ltd.(50%)) ("EPI") and a third-party local developer (the "Partner") to sell 100% of EPI's interest in the SPV (subsidiary of EPI, which owns 54 acres plot in Bangalore, India) to the Partner, on April 13, 2022 the Company announced that the Partner submitted to EPI an unformal non-binding proposal to purchase 100% of EPI's interest in the Project and the completion of the transaction in exchange for a payment of INR 112-117 crores (approximately EUR 13.6-14.2 million) in lieu of the remain amount of consideration according to the Sale Agreement (INR 269 crores (approximately EUR 32.6 million)).

On June 28, 2022 the Company announced that the founder and CEO of the Partner has been arrested by Indian law enforcement authorities on suspicion of money laundering and on August 2, 2022 the Company updated that the founder and CEO of Partner has been released from custody of the certain government agency which had arrested him.

The negotiation between the Parties have not yet matured into a binding agreement. In order to preserve EPI's rights, EPI has initiated arbitration proceeding in Singapore versus the Partner in accordance with the provisions of the Agreement between the Partner and EPI.

In the period since May 19, 2022 till August 24, 2022 the Partner deposited in the SPV INR 22.5 crores (approximately EUR 2.77 million). There is no certainty that it will lead to closing, however the negotiation between the Parties is in advanced stage and the Parties continue to act to complete the transaction on the terms as set forth in non-binding proposal.

As of this date, the Partner paid to EPI approximately INR 87.00 crores (approximately EUR 11.2 million) (Company part INR 43.5 crores (approximately EUR 5.6 million)) and has to pay to EPI the remaining amount out of the consideration of approximately INR 269 crores (approximately EUR 32.6 million) (Plaza part INR  134.5 crores (approximately EUR 16.3 million)) as per the Sale Agreement.

NOTE 6:-   EQUITY ACCOUNTED INVESTEES (Cont.)

Net realizable value measurement of Bangalore project

As for June 30, 2022 and December 31, 2021, the Group measured the net realizable value of the project. The net realizable value of the project based on the comparable method is INR 159 crores (App. EUR 19.3 million); 2021 - INR 172 crores (App. EUR 20.4 million).  Due to decrease in value of the plot EPI recognized a write off in the amount of app. EUR 1.53 million (the Company's part (50%) app. EUR 0.76 million).

In light of the Company's intention to sell the Plot to the Partner or to any other third party (see above), and in light of the uncertainty as to the completion of the transaction with the Partner, the Company believes that the comparable method reliably reflects the net realizable value of the Plot and therefore the Company recorded the value of the plot as of June, 2022 at the value of INR 159.2 crores (EUR 19.3 million) (the Company's part (50%) app. EUR 9.6 million).

The plot in Bangalore is still in land stage and therefore the value of the plot has been derived using land comparable method. The valuation of the property reflects the interest that the Partner still holds in the plot (10% as described above), the size of the plot, the non-contiguous land parcel, the petition/application filed with NCLAT against the partner and the money laundering by Enforcement Directorate against the Mantri Promoters.

The following main parameters have been considered to arrive at the land value of the subject property by land sale comparison method:

NOTE 7:-   MATERIAL EVENTS DURING THE REPORTING PERIOD

a.       Update regarding a change in Elbit Imaging Ltd holdings

Since August 5, 2020 and up to last announcement, Elbit Imaging sold about 1,670 thousand shares of the Company for a total consideration of approximately NIS 1,683, thus, Elbit Imaging holdings in the Company have diminished from 44.9% to 20.55% of the Company's issued and paid-up capital. During the reporting date, out of the above, Elbit Imaging sold about 77 thousand shares of the Company for a total consideration of approximately NIS 150 thousand, thus, Elbit Imaging holdings in the Company have diminished by 2.67%.

b.      Update regarding the sale agreement of the plot in Bangalore, India.

For the details regarding sale agreement of the plot in Bangalore, India please refer to the Note 6.

c.       Update regarding the issuance of a notice of dispute and acceptance of offer and consent to arbitrate to Romania with respect to the "Casa Radio" project.

Following Note 18(c) to the annual consolidated financial statements as of December 31, 2021, as of May 16, 2022 the Company has submitted with International Centre for Settlement of Investment Disputes (the "Centre") a Request for Arbitration (the "Request") against Romania. The Request was registered by the Centre on June 3, 2022. Further to the Centre's registration of the Request and pursuant to Rule 2(1)(a) of the Rules of Procedure for Arbitration Proceedings (the "Arbitration Rules"), the Company set out Romania proposal with respect to the number of arbitrators and the method for their appointment in these proceedings. At the current stage, the Company and Romania are in the process of agreeing above mentioned proposal.

d.      Dutch statutory auditor

Following Note 16(b)(7) to the annual consolidated financial statements as of December 31, 2021, which discloses statutory filing requirements, the Company submitted the annual consolidated financial statements as of December 31, 2021 which were filed to the London Stock Exchange, the Warsaw Stock Exchange and the Tel Aviv Stock Exchange, to the Authority for the Financial Markets and to other relevant Dutch authorities.

e.        Deferral of payment of Debentures and partial interests' payment

As previously disclosed by the Company in Note 8(c) to its annual consolidated financial statements as of December 31, 2021, the Company was not able to meet its final redemption obligation to its (Series A and Series B) bondholders, due on July 1, 2022. In light of the above on June 16, 2022 the bondholders approved to postpone the final redemption date to January 1, 2023.

f.       Update regarding proposal from G.C. Hevron Capital Ltd

As previously disclosed by the Company in Note 18(d) to its annual consolidated financial statements as of December 31, 2021, the Company received proposals from G.C. Hevron Capital Ltd ("Hevron Capital").

On March 30, 2022 the Company announced that Hevron Capital submitted to the Company a request to extend the No-Shop period, due to the complexity and the vast amount of data that needs to be proceed in order to evaluate the proposed settlement

NOTE 7:-   MATERIAL EVENTS DURING THE REPORTING PERIOD (Cont.)

("Hevron Capital' Request"). Following the above, the Company's Board of Directors approved Hevron Capital's Request to extend the "No-Shop" which expired as of May 20, 2022.

 NOTE 8: -     SUBSEQUENT EVENTS

a.       Annual General Meeting

Annual General Meeting of the Shareholders of the Company was held on July 20, 2022, all the proposed resolutions were passed.

b.      Update regarding the sale agreement of plot in Bangalore, India

For the details regarding sale agreement of plot in Bangalore, India please refer to the Note 6.

c.       Environmental Sustainability Policy

On August 30, 2022 the Company adopted Environmental Sustainability Policy.

d.      Taskforce on Climate-related Financial Disclosures ("TCFD")

The Company notes the TCFD recommendations on climate-related financial disclosures.

(1)  BACKGROUND

Released in 2017, the TCFD recommendations set out eleven recommended disclosures around four core areas for companies to report material climate-related information to the market via the mainstream financial report, as shown in Figure 1, below.4 In focusing on these four core areas of business practice and disclosure, the TCFD sought to ensure that consideration for climate-related matters were adequately embedded throughout the organization's governance, strategy, and risk management processes and transparently reflected for both preparers and users alike. In doing so, this addresses the demand for information that is consistent, comparable, reliable and clear. The TCFD recommendations also promoted the use of climate scenario analysis for the assessment of corporate strategic resilience. Climate scenario analysis is offered as a means to inform users5 about a company's strategic resilience, and enable companies to prepare and respond to the uncertainties of climate change and decarbonization efforts over different time horizons, both in terms of the timings of potential impacts as well as their magnitudes.6 By exploring a range of plausible and coherent climate futures and assessing the potential corporate risks and opportunities of each, companies can test their thinking and strategies, better understand the key drivers that will likely affect their business going forward, and adapt their strategies and ambitions accordingly. Whilst potentially challenging, scenario analysis is an essential component to TCFD reporting. It brings considerations of the short-, medium-, and long-term impacts of climate change into the present day, enabling companies and investors can act in a more informed and effective manner

The UK took the pioneer status and local firms will be required to disclose climate-related financial information, ensuring they consider the risks and opportunities they face as a result of climate change.

NOTE 8: -      SUBSEQUENT EVENTS (Cont.)

•      The UK is the first G20 country to make it mandatory for Britain's largest businesses to disclose their climate-related risks and opportunities, in line with TCFD recommendations

•      new legislation will require firms to disclose climate-related financial information, with rules set to come into force from April 2022

•      follows publication of UK's landmark Net Zero Strategy and forms part of the government's commitment to making the UK financial system the greenest in the world

The UK is becoming the first G20 country to enshrine in law mandatory TCFD-aligned requirements for Britain's largest companies and financial institutions to report on climate-related risks and opportunities.

From 6 April 2022, over 1,300 of the largest UK-registered companies and financial institutions will have to disclose climate-related financial information on a mandatory basis - in line with recommendations from the Task Force on Climate-Related Financial Disclosures. This will include many of the UK's largest traded companies, banks and insurers, as well as private companies with over 500 employees and £500 million in turnover.

The TCFD is an industry-led group which helps investors understand their financial exposure to climate risk and works with companies to disclose this information in a clear and consistent way. It was launched at the Paris COP21 in 2015 by the Financial Stability Board (FSB) and Mark Carney, the UN Special Envoy on Climate Action and Finance and UK Finance Adviser for COP26, and has since published a clear and achievable set of recommendations on climate-related financial disclosures.

TCFD Recommendations

The TCFD Recommendations, first launched in 2017, are designed to encourage consistent and comparable reporting on climate-related risks and opportunities by companies to their stakeholders. The TCFD Recommendations are structured around four content pillars: (i) Governance; (ii) Strategy; (iii) Risk Management; and (iv) Metrics & Targets; and eleven recommendations to support effective disclosure under each pillar.

NOTE 8: -      SUBSEQUENT EVENTS (Cont.)

Why it is important to respond to the TCFD recommendations now?

The UK's Green Finance Strategy sets out the Government's expectations for all listed companies to disclose in line with the TCFD recommendations by 2022.

CDP has already amended its disclosures to include a section related to the risks and opportunities arising from climate change, which is based on the TCFD recommendations.

According to a 2019 TCFD status report, 340 investors with nearly $34 trillion in assets under management are asking companies to report under the recommendations.

(2) CORPORATE INFORMATION 

For the details please refer to the Note 1.

(3) GOVERNANCE

In relation to the above trend and legislation, the Company finds itself, as a premium traded firm, in the reporting category. However, the intention was to regulate the way the largest firms in the UK are reporting in relation to the climate change. The legislation clearly specifies "companies with over 500 employees and £500 million in turnover."

The Company with its five employees, directors and the four lands it holds, clearly falls far behind the regulator's criteria for reporting firms. The Company does not have its own offices, but sharing two offices in business hubs.

The Company is a very small company and cannot be compared with the above-mentioned giant scales. In fact, we are under the impression, the Company has by far an insignificant impact over the climate change, compared even with a micro company.

Just like the rest of the western world, the Company takes climate changes very seriously and is taking measures in order to increase its climate change orientation and to decrees negative effect on it in areas that are in the company's control.

Previously, the Company, was not very active on the topic of global warming, mainly due to is type and limited operations. In 2022, due to new reporting requirements and world trends, the company is much more aware of the topic and is taking a proactive approach.

Since this year, the company is carefully looking into its own operation and constantly strives to reduce carbon footprint and improve the impact of its operations have on the environment, even though, that impact is negligible.

The Company has written an environmental sustainability policy that is being reviewed and adopted in Q4 of 2022. That policy creates a commitment of the company to global climate change and will influence the company's operations in favour of minimalizing carbon footprint.

(4) STRATEGY

As the board of the Company is made aware of the climate change issues and the TFCD reporting, it starts to embed climate changing considerations into board daily decisions.

The first challenge was to study the issue and the board empowered the Chairman to study the issue and educate the Board.

NOTE 8: -      SUBSEQUENT EVENTS (Cont.)

The second challenge, was to create an environmental sustainability policy that will set the company in the right direction in terms of climate change countering.

Despite of the very limited current level of operations the company experiences, a provisional environmental policy was drafted and will be adopted by the Board on next Board meeting.

This policy will add the environmental consideration to every business decision the company takes in the future.

As the Company is in a runoff mode, climate related risks are potentially relevant in the short and maybe medium time frame.

In both terms, the company sees a small risk of higher level of maintenance attributed to the four plots it has, due to extreme weather events. These are included but not limited to: cleaning, evacuating and maintaining the plots.

The first impact of environmental study and climate change, was on the company's Board. After the adoption of the environmental policy by the Board, the Company will observe the management taking actions accordingly and having the environment in mind in daily operations, according to the new policy.

In light if the above mentioned, resilience, is very limited to absence, when taking into account the current operations of the Company.

(5) RISK MANAGEMENT

Risks analysis requires a sufficient amount of data in order to produce an accurate analysis.

In the Company case, there is only so much data that can be used for such a study. While the company does not build, develop or produce anything, the risks study is very limited.

Physical risks

As long as the Company is not developing its lands, there is no value chain that might be affected by storms, extreme weather or weather changes. Not even whether related disasters.

The Company does not see how changes such as floods, extreme waves or droughts can have a major impact on its office related work.

The consequences of the above phenomena are limited to an increase in either cooling or warming expenses.

One low factor risk is identified in an extreme weather condition, when any of a company's plot is damaged due to such weather. That will lead to some expenses of cleaning, evacuating and restoring expenses.

A further related risk study is advised to the BOD to be performed in the current lands where the company have the four plots. Any new risk identified locally, will be imbedded to the financial planning ahead.

NOTE 8: -      SUBSEQUENT EVENTS (Cont.)

Transition risks

Just like Physical risks, transitional risks are minimized when dealing with a five office n]based people, rather than a productive firm with mage processes and output.

Figure 1 - non-exhaustive list of climate-related risks and opportunities:

(6) METRIC AND TARGETS

Taking into account the limited scope of company's operations, it is clear that the metrics and targets are somewhat irrelevant for these operations. So is the disclosing of scopes 1-3 and the GHG emission. One needs sufficient operations in order to be able to produce, analyse and counter measures. The Company is by far not having significant operations in order to demonstrate the study and the cure. The Company's impact on climate change is negligible.  

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