Sunflower Sustainable Investments Ltd.

Company Presentation – July 2014

DisclaimerThis presentation is made for convenience purposes only and is not designed to obviate the need to

inspect the reports publicly released by Sunflower Sustainable Investments Ltd., including the financial

statements. Certain information as presented in the presentation includes declarations, statements of

opinion, expectations, assessments and forecasts including in connection with the industry to which

the company belongs, which are forward looking. The information is based, inter alia, on estimates and

assumptions which may not materialize and/or transpire as wrong and involve risks, information and

events which are difficult to foresee and/or are unclear, and therefore the presentation of the future

information and the said explanations should not be deemed as a promise and/or guarantee of the

company’s future performance. The Company’s actual performance may materially differ from the

future information provided by the Company in good faith. The aforesaid does not constitute advice,

invitation, an offer or a recommendation to buy securities of the Company. The purchase of securities

of the Company shall be made only based on the Company’s valid prospectus on the date of purchase

and the immediate reports. Anyone making use of information appearing in the presentation, bears

sole responsibility therefore.

2

Business Card

The Company operates in the Renewable Energy market

The Company holds projects in the renewable sector of 81 MW and has additional 100 MW of projects in development stage

63 MW are connected to the electricity grid and 18MW are under construction or in purchase process

The Company’s business model is to invest in renewable energy projects which generate a strong and stable FFO

The Company owns several real estate properties in Israel with a total value of NIS 90 million

3

4

0

10

20

30

40

50

60

70

80

90

2008 2009 2010 2011 2012 2013 2014 (*)

The Group’s Investments in Projects in MW

(*) The capacity of 2014 includes 18 MW of projects under construction or purchase process and does not include projects in development stage of 100MW

Company’s Revenues from Electricity Million NIS

-

20

40

60

80

100

120

1

41

74 83

1

26 28

22

22

21

2

3

Italy Spain Israel

5

The Companies Activities

PV ProjectsWind Farms

53MW Active Projects10MW Active Projects2 Properties

Projects in purchase

process - 2MW

Projects under construction - 16MW

Projects in development stage - 100 MW

Book Value

NIS 90 million

Company’s share in all the

projects - 41MW

Company’s share in active projects and under

construction - 20MW

Company’s share in Projects in development stage-

82MW 6

Real Estate Properties

The Renewable Energy Sector PV Technology

The third largest Renewable Energy sector, after Hydro and Wind

The purchase cost of panels has decreased from approx. €3.5 million per

MW in 2008 to approx. €0.5 million per MW in 2014

$114 billion of investments in 2013 in PV projects, approx. 45% of the total

investments in the renewable energy

7

0

50

100

150

Installed Capacity in GW around the World

- PV Projects

The Renewable Energy Sector Wind Technology

The fastest growing renewable energy sector in the Western world

Low Regulatory Risks: Incentives for wind-generated energy are among the

lowest in the renewable energy industry

$80 billion of investments in 2013 in PV projects, approx. 30% of the total

investments in the renewable energy

0

50

100

150

200

250

300

350

Installed Capacity in GW around the world- Wind Farms

8

PV-טכנולוגיית ה

PV Sector

Solar Energy - Italy

By 2020, Italy is required to produce 17% of its consumed energy from

renewable sources, and by the end of 2012 13% were achieved

In the aggregate, by the end of 2013 PV facilities of approx. 18 GW were

connected to the electricity grid

The Company owns PV Plants with an installed capacity of 31 MW through a

subsidiary, in which the Company holds 85% and the remaining shares are

held by a local partner

The entire portfolio is financed by Italian banks in non-recourse financing

The total investment in Italy, in terms of 100% of the projects, is in an amount

of Euro 108 Million, out of which 27% is in equity

10

Solar Energy - Spain

By 2020, Spain is required to produce 20% of its consumed energy from

renewable sources, and by the end of 2012 14% were achieved

By the end of 2013, PV facilities of 5 GW were connected to the electricity

grid in Spain

The Company owns PV Plants with an installed capacity of 13 MW through

a subsidiary, in which the Company holds 50% and the remaining shares

are held by Shikun & Binui

A 6 MW project is financed by a German bank in non-recourse financing

The total investment of the Company in Spain is in an amount of Euro 49

Million, out of which 63% is in equity

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Solar Energy - Israel

Israel has set a target that by 2020 it will produce 10% of its consumed

energy from renewable sources, and by the end of 2012 approx. 1% was

achieved

The Company has small active facilities with an installed capacity of 4 MW

(Company’s share 2 MW)

The Company owns medium-size PV plants with a total capacity of 5 MW

(Company’s share 4 MW) and additional 2 MW are in purchase process

The Company sold 40% of the regular shares in projects with a capacity of

4MW and preferred shares for an amount of NIS 21,000,000

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Wind Sector

Wind Energy - Poland

The Company founded a subsidiary in which it holds 82% together with

three entrepreneurs

By 2020, Poland is required to produce 15% of its consumed energy from

renewable sources, and by the end of 2012 11% were achieved

0

1000

2000

3000

4000

Intalled Capacity in MW in Poland Wind Energy

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Wind Energy - Poland

The Company owns 2 operating wind

farms with a total capacity of 10 MW

(Company’s share 7MW)

The Company owns 2 wind farms with a

total capacity of 16 MW which are under

construction (Company’s share 13MW)

The total investment of the Company in

Poland is in an amount of € 26 Million

and until end of construction additional €

16 million will be invested

The Company signed agreements for the

finance of the operating wind farms in

non-recourse financing of approx. 55%

15

Wind Energy - Finland

16

0

100

200

300

400

500

Intalled Capacity in Finland - Wind Energy in MW

By 2020, Finland is required to produce 38% of its consumed energy from

renewable sources, and by the end of 2012 34% were achieved

The Company signed an agreement for the purchase of permits in

development stage with a total capacity of 100 MW for a total consideration

of € 5 million (Company’s share 82MW)

The permits which will be fully developed will be purchased at the

completion of the development stage within two years

The estimated construction cost of the Projects, in case they will be

constructed in full and in accordance with the known construction costs, is €

160 Million

Summary of the Group’s Investments thousand Euros

(1) In terms of 100% of the Projects (2) including 2 MW in purchase process (3) including 16 MW under construction (4) the legislation was not enacted yet. please note the Company’s Management Discussion and Analysis attached to the financial reports of 2013. (5) regarding the change of legislation in Italy, which was not considered in the data, please see the company’s publication dated June 26, 2014. (6) regarding the change of legislation in Spain, which was considered in the data, please see the company’s publication dated June 24, 2014.

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Average

Projected

Annual

Revenues

per MW (1)

Projected

Annual

Revenues

for 2013 (1)

Average

Cost per

MW

Term of

Incentive

(in years)

Company’s

Share in

Initial Cost

Company’s

Share

Total

Initial

Cost

(1)

Company’s

Share in

MW(1)

Country Incentive

534 (5)16,540 (5)3,48620 91,86185%108,07231Italy

Feed In

Tariff

668 (6)8,680 (6)7,5003048,75050%97,50013Spain

4942,4703,5472017,735100%17,7355 (2)

Israel 6632,6503,929209,43160%15,7184

5831,1653,319203,31950%6,6382

2565,1251,58915 (4)26,05282%31,77020 (3)

PolandGreen

Certificate2711,6251,67515 (4)5,72857%10,0506

Return of the Company’s Investments in

Italy and SpainIn Million of Euros

Company’s share only, 50% in Spain and 85% in Italy

ItalySpain

2431Net Investment after Finance

(3)(10)Withdrawal – Net Amount

2121Remaining Financial Investment on March

31, 2014

2010-20132008Year of beginning of activity

Investments in Countries in million of Euros

0

50

100

150

200

250

2010 2011 2012 2013 2014

Poland Israel Italy Spain

(*) Company’s Share, in 2014 includes 2 MW in Israel in purchase process and 16

MW in Poland under construction

The Group’s Investments in Countries (*)In Financial Terms

20

46%

24%

14%

16%

**2014

Italy Spain Israel Poland

53%28%

11%

7%

31.12.13

Italy Spain Israel Poland

56%35%

9%

31.12.12

Italy Spain Israel

(*) Company’s Share, investments before finance

(**) including projects under construction or in purchase process, not including Finland

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Real Estate Business in Israel The Company owns properties with a total value of approx. NIS 90 million

A plot for the

construction

of an office tower in

Ra’anana

A yielding property in

Ra’anana in partnership

with REIT 1

Currently used as a parking lot100% occupation

NIS 30 Million Book ValueNIS 62 Million Book Value

NIS 0.6 Million Annual Income NIS 5 Million Annual Income

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Company Holdings Structure

Sunflower

Sustainable

Investments

Ltd.

Union

9.71%

Roni Biram

&

Gil Deutsch

45.44%Redmill

15.17%

Public

12.74%

Beresheit

Fund

16.94%

EBITDA and FFOthe Group’s Total Activity in thousand NIS

EBIDTA - Earnings Before Interest, Taxes, Depreciation, Amortization, reappraisal of real estate

and capital gain

FFO - Funds from Operations - the reported operating profit, net of financing expenses (including

profit from securities and apart from rate differences) and current taxes, and net of revenues and

expenses of a capital nature, plus the Company’s share in the renewable energy business

depreciation and other amortization

The profit from securities and income interest in 2013 was NIS 8 million, while in 2012 it was NIS

12 million and in Q1 2014 it was NIS 1 million, while in Q1 2013 it was NIS 2 million

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Q 1 2014 Q 1 2013 2013 2012

EBITDA 15,570 12,817 89,828 76,616

FFO 6,841 4,125 39,151 43,526

Summary Balance Sheets in thousand NIS

March

31, 2014

December

31, 2013

Cash, Cash Equivalents and Short-term Investments 110,376 177,366

Investments in affiliated companies 82,805 82,048

Investment in Renewable Energy Projects, after Depreciation 640,542 602,157

Investment Property 92,382 92,380

Asset classified as held for sale 22,760 22,760

Short-term Credit and Current Maturities of Long-Term Loans and

Bonds 90,279 110,262

Long-Term Loans from Banking Corporations 378,050 381,917

Loans from non-controlling shareholders in subsidiaries 31,917 30,115

Bonds 197,511 199,652

Equity 293,153 294,430

Net Debt without affiliated companies 587,381 544,580

Total Balance Sheet 1,032,510 1,051,820

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Net Debt including affiliated companies

(this data is not included in the consolidated financial statements)670,817 625,913

Q 1 2014 Q 1 2013 2013

Revenues 21,752 16,686 99,910

Cost of Revenues 11,555 9,509 43,863

Gross Profit 10,197 7,177 56,047

Valuation losses of photovoltaic plants - - (35,022)

Valuation gains of investment property, net - - 21

General and Administrative Expenses (4,210) (3,827) (14,493)

Other income (expenses), net 180 (94) 403

Equity in net earnings (losses) of affiliated

companies 214 (850) 1,118

Operating Profit 6,381 2,406 8,074

Financing Expenses, net (7,374) (20,558) (37,549)

losses before Taxes on Income (993) (18,152) (29,475)

Taxes on Income 451 (3,001) 7,069

Net losses (1,444) (15,151) (36,544)

Summary Income Statement Figures in thousand NIS

The

redu

ction

of valu

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f the P

V P

lants in

20

13

was in

Spain

du

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. In th

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Summary

As of 2010 until today:

the capacity of Projects in MW was doubled

The investment in Projects was tripled

The Company’s income from producing electricity is four times higher

The Wind sector is the main growth engine of the Company and the Company

is looking for investments opportunities in:

Poland - the Company is planning to substantially increase its investment

and to expend its activity in this market

Finland - the Company preparing for significant activity in this new territory

The Company intent is to use its knowledge and experience in the PV and

Wind sectors in order to expend its activity in the target territories

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Thank you!

Annex: Real Estate in Israel

1. “Amdocs Building” at Ra’anana

junction

The company holds 50% of a property,

which is located at Raanana-center

junction (south), near Route 4

Built-up area of the property – approx.

13,425 sqm

Most of the property is currently leased to

Amdocs

Fair book value- NIS 62 million

Annual income from the property - approx

NIS 5 million

Occupancy rate - 100%

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Annex: Real Estate in Israel

2. 2007 Lot

A lot on an area of approx. 4,600 sqm

located near Amdocs Building

The lot has building rights for the

construction of a multi-story tower known as

the “Raanana City Gate Tower”

REIT 1 has an option to buy 50% of the

built-up tower

Fair value on the books - approx. NIS 30

million

The lot is used as parking lot as of 2012

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The Wind Sector in Finland

Incentives to Start Activity in Finland

҉ Finland is one of the only countries in Europe with a rating of AAA

҉ The wind market in Finland is in an early stage and by the end of 2013 wind projects with a total capacity of approx. 380 MW were erected which are included in the tariff scheme, out of which approx. 160 MW were erected during 2013

҉ The current tariff scheme set a capacity of 2,500 MW

҉ An average wind farm in Finland can produce approx. 3,000 kWh per annum

Feed in Tariff

҉ Wind farms in Finland are entitled, in addition to the market price of electricity, to an additional amount equal to the difference between the market price and € cent 8.35 per kWh

҉ Wind farms that will be connected before the end of 2015 will be entitled of € cent 10.53 per kWh

҉ The additional amount equal to the difference between the set amount and the market price will be calculated based on a market price not lower than € cent 3 per kWh

҉ The current market price is approx. € cent 4 per kWh

҉ The tariff is for a period on 12 years

The Wind Sector in Finland

҉ Development - most of the development of new projects is executed by local developers with limited experience in the field, while there are also experienced international developers working with local teams

҉ Services - all the construction and operation services are provided by local companies while there are also international advisors active in the market

҉ Turbine Manufacturers - most of the turbine manufacturers are active in the market and they are adjusting their turbines to the severe weather

҉ Investment - in the past, investments were made by local energy companies and investors but lately international investors are part of the market

҉ Banks - Nordic banks are financing wind projects

The Company’s Project

҉ The Company signed an agreement for the purchase of licenses for the construction of up to 5 Wind Farms with a capacity of approx. 20 MW each, which are still in the development process

҉ The consideration for the purchase of the licenses is in an amount of € 50,000 per MW, and the estimated total amount is around € 5 million, in case the transaction will be completed for all the wind farms

҉ Based on the current construction costs, the Company estimates that the cost of the construction of the Wind Farms will be in an amount of € 1.6 million per MW