How To Build A Garden In China

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1 GTC Real Estate China Kardan Land China Creating and Developing Value from the Growth of China November

2 and the beat goes on transforming from agriculture country

3 and the beat goes on to a modern country

4 China Overview the world s second-largest economy and will be bigger than USA s by 2020 China to make a 28% contribution to the global GDP growth in 2011 and 30% 2012 different economies"

5 China s Urban Population.from 600 million (2010) to 700 million (2015) every year 2 X Israel population moves to the cities Sources: World Urbanization Prospects

6 China - Emerging Middle Class China will have the world's fourthlargest number of wealthy households by 2015

7 China - Emerging Middle Class (2) Middle Class: 400 million (2010) to 500 million (2015) Upper Middle Class: 170 million (2010) to 355 million (2015) Sources: Urbanization Rates, Population based on UN, World Urbanization Prospects ; MGI Consumer Demand

8 Water to drink, a house to live and a place to shop

9 We are treating 630,000 t/d of water & waste water, we are building 27,500 apartments (2.6 million sqm), and 230,000 sqm of commercial area for lease and 90,000 of commercial area for sale

10 China Real Estate Market - Residential China: Building Rome in a day Building Europe in 15 years The Economist source: Economist Intelligence Unit

11 China Real Estate Market - Residential In the coming 10 years Greece will be built in Chengdu and Sweden in Tianjin

12 China Real Estate Market - Commercial Shopping center per capita in China major cities is between 0.14 and 0.42 gross sq.m comparing app. 2 sq.m in the USA To be built Existing 2010

13 Kardan Land Strategy Since 2010 Assets Management To align our activity with the government policy Since 2007 Commercial Development To be active in second and third tier city Managing the risks in China

14 Shenyang - Qili Xiangdi Project Name QILI XIANGDI Land Area (m 2 ) 129,781 Building Rights (m 2 ) 175,497 Residential 2,756 Retail Planned Completion Q4/2010 Total Units 1,930 Kardan Land Projects

15 Shenyang Palm Garden Project Name PALM GARDEN Land Area (m 2 ) 441,248 Building Rights (m 2 ) 435,977 Residential 21,389 Retail Planned Completion Q4/2015 Total Units 3,500 Kardan Land Projects

16 Shenyang Suzy Project Name Land Area (m 2 ) SUJIA TUN [SUZY] 260,464 Building Rights (m 2 ) 560,308 Residential; 38,124 Retail Planned Completion Q Total Units 7,420 Kardan Land Projects

17 Xi an Olympic Garden Project Name OLYMPIC GARDEN Land (M 2 ) 397,734 Building Rights (m 2 ) 889,616 Residential 46,365 Retail Planned Completion Q4/2014 Total Units 9,363 Kardan Land Projects

18 Changzhou City Dream Project Name CITY DREAM Location Changzhou Land (M 2 ) 194,650 Building Rights (m 2 ) 470,432 Residential 61,987 Retail Planned Completion Q Total Units 4,137 Kardan Land Projects

19 Chengdu Galleria Chengdu Project Name Location Land Area (m 2 ) Gross Floor Area (m 2 ) Grand Opening Retail GFA (m2) GALLERIA CHENGDU Gaoxin District, Chengdu 20,800 92,000 Nov. 24, ,837 First International grade shopping mall in Sichuan, Bringing Zara, H&M, Mango, Sephora and Uniqlo to the region Kardan Land Projects

20 Dalian Kardan Europark Project Name Location Land Area (m 2 ) Gross Floor Area (m 2 ) Grand Opening Retail GFA (m2) Kardan Europark Donggang Area, Dalian 66, , ,120 Total Units 1,085 Kardan Land Projects

21 Kardan Land s Projects Summary Project City Residential for Sale (sqm) Construction Area (sqm) (*) Commercial for Sale (sqm) Commercial for Lease (sqm) Total (sqm) Total Residential Units Residential Unit Sold Qili Xiangdi Shenyang 175,497 2, ,253 1,930 1,921 Palm Garden Shenyang 435,977 21, ,366 3, Suzy Shenyang 560,308 14,124 24, ,432 7,420 2,648 Olympic Garden Xi an 889,616 17,865 28, ,981 9,363 5,150 till H1/ ,142 units were sold and 6,496 units were handed over City Dream Changzhou 470,432 38,387 23, ,419 4,137 1,609 Dalian Dalian 109, , ,257 1,085 - Chengdu Galleria Chengdu ,837 53, ,640,967 94, ,057 2,966,545 27,435 12,142 * Kardan Land s share in residential and commercial for sale is app. 50% and in commercial for lease is app. 70%

22 Kardan Land s Projects 2011 Sales Vs Sales Units * H H Area (M 2 ) Sales (M EUR) Units* Area (M 2 ) Sales (M EUR) Total 1, , ,140 96, Decrease in the sold units was compensated by increase in sale price - only 14% decrease in sales value * Units sold, not yet handed over RMB/EUR exchange rate 9.36 as of 30/6/2011

23 Kardan Land - Key Financial Parameters H1/2011 (M EUR) (M EUR) (M EUR) (M EUR) Net Profit (Loss) (1) Total Assets Constant and stable growth Total Equity

24 Kardan Land Main H P&L items (in million EUR) Revenue - Residential projects 13 Revenue- Commercial project 3 Residential gross margin 23% Net valuation gains from Investment Property 12 Profit from sale of land 7 Net profit for the period* 13 * Including ESOP expenses in the sum of EUR 5 million

25 Kardan Land Units Hand Over 5,646 units sold and not yet handed over will generate a EUR 30M gross profit to Kardan Land in the coming two years

26 Case Study: Qili Xiangdi Construction & sales began in 2005 Total cost of sales (per sqm) of RMB 380m (RMB 2,077) (*EUR 222) Total revenue (per sqm): RMB 536m (RMB 2,931) (*EUR 313) Gross profit of 29% (RMB 156m) Kardan Land s first Residential project Equity *EUR 4.3M Gross profit *EUR 16.6 M * RMB/EUR exchange rate 9.36 as of 30/6/2011

27 Case Study: Galleria Chengdu Total investment of approx. EUR 70m Opened in 2010 Q4 In 2011 Q2 50% were sold to MGPA according to EUR 120M valuation. Remains under Kardan s management Profit generated to date: EUR 45m Kardan Land s first Shopping Mall project Equity Invested EUR 44M Profit till Sep 2011 EUR 45M

28 Disclaimer Disclaimer This presentation has been prepared on behalf of Kardan N.V. solely for information purposes. It is not an investment advice or an offer or solicitation for the purchase or sale of any financial instrument. While reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the date of the presentation, Kardan N.V. makes no representation that it is accurate or complete. The information contained herein is subject to change without notice. Neither Kardan N.V. nor any of its officers or employees accepts any liability for any direct or consequential loss arising from any use of this presentation or its contents. Copyright and database rights protection exist in this presentation and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of Kardan N.V. All rights are reserved. 28

29 Thank You.

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