Industrial Rankings Dun & Bradstreet (Israel) publishes a yearly listing of Israel’s largest industrial companies. The companies are classified in the listing according to sales (NIS), calculated according to specific guidelines for the year ending December 31, 2009. Israel Sales figures include subsidiary companies. Electric Leading Industrial Companies by Sales Volume
Sales Exports/Overseas Sales Net Profit Equity Employees Company Sales per Parent Company Sector NIS Growth NIS Change % of Total NIS Profitability NIS Employee ra n k 2010 No. Millions (%) Millions (%) Sales Millions (%) Millions
NIS (000) ra n k 2009 Corporation
Pharmaceutical & 1 Teva Pharmaceutical 54,659.2 25.4 52,729.7 26.4 96.5 7,865.2 14.4 72,563.1 35,000 1,561.7 – 1 Industries Cosmetics Chemicals, Minerals, 2 ORL 20,219.4 -37.7 8,809.1 -27.2 43.6 1,373.4 6.8 4,283.7 1,321 15,306.1 Israel Corporation Refinery 2 Electricity Producers & 3 The Israel Electric Corp. 18,704.0 -22.5 – – – 1,238.0 6.6 16,829.0 12,663 1,477.1 – Infrastructures 4 Chemicals, Minerals, 4 ICL 17,910.3 -34.0 16,796.0 -34.0 93.8 3,029.8 16.9 10,470.9 10,625 1,685.7 Israel Corporation Refinery 3 Producers of Electronic 5 I.A.I 11,329.8 -19.6 8,777.6 -23.0 77.5 236.0 2.1 2,684.0 16,757 676.1 State of Israel Security Sys. & Equip. 5
6 Amdocs 11,257.5 -9.5 – – – 1,282.7 11.4 12,129.3 17,244 652.8 – Software Development 6
Producers of Electronic 7 Elbit Systems 11,138.8 7.4 8,671.8 1.9 77.9 845.3 7.6 3,144.1 11,238 991.2 – Security Sys. & Equip. 7
1 Producers of Chips/ 8 Intel Electronics 10,519.7 315.9 10,519.7 315.9 100.0 – – – 2,575 4,085.3 Intel Corporation Semiconductors 26 Chemicals, Minerals, 9 M.A. Industries 8,709.2 -12.7 8,379.8 -12.1 96.2 128.5 1.5 4,752.8 3,872 2,249.3 – Refinery 8 Food, Beverages & 10 Tnuva Group 7,200.0 – – – – – – – 6,700 1,074.6 Apex Shamir Group Tobacco 10
Electricity Producers & Infrastructures
Sales Exports/Overseas Sales Net Profit Equity Employees MAIN RANK Sales per Company NIS Change NIS Change % of Total NIS Profitability NIS Parent Company 2010 No. Employee ra n k 2010 Millions (%) Millions (%) Sales Millions (%) Millions Industry NIS (000)
1 The Israel Electric Corp. 18,704.0 -22.5 – – – 1,238.0 6.6 16,829.0 12,663 1,477.1 – 3
2 Ormat 1,697.0 21.8 1,697.0 21.8 100.0 207.9 12.3 2,619.2 1,090 1,556.8 – 36
3 Afcon Industries 910.5 27.8 201.4 183.8 22.1 47.8 5.2 169.2 1,204 756.2 Shlomo Rent A Car (1987) 60
4 C. Mer Industries 590.0 -3.5 352.1 -4.7 59.7 38.7 6.6 251.0 962 613.3 – 91
5 Afcon Electro-Mechanics 560.5 23.6 – – – 16.8 3.0 130.1 647 866.3 Afcon Industries *
6 Elco Energy & Infrastructure 421.6 -15.9 9.3 -2.0 2.2 – – 212.2 500 843.2 Electra *
7 Sollel 230.0 – – – – – – – – – – 199
8 A.F.S.K. Industries 221.7 15.9 134.8 60.2 60.8 -2.3 -1.0 15.2 192 1,154.5 Orad *
A subsidiary of a ranked company | Company shares are traded in Israel | Company shares are traded abroad | Estimated figures
IsraelThe IsraelElectric Electric Corporation Ltd. P.O.B. 10, Haifa 31000 | Tel: 972-4-8182222 | Fax: 972-4-8186100 | Website: www.israel-electric.co.il P.O.B. 10, Haifa 31000 | Tel: 972-4-8182222 | Fax: 972-4-8501850 | Website: www.israel-electric.co.il The Israel Electric Corporation Ltd.
Established Line of business 1923 Generation, Transmission, Distribution and Supply of Electricity The IEC endeavors to supply reliable, available and high quality electricity at an equitable price, maintaining a high standard of service, adhering to economic, commercial and environmental principles.
Mordechai (Moti) Amos Lasker Friedman CPA Chairman President and CEO of the Board of Directors
srael Electric Corporation (IEC) is a public In Israel, Maalot S&P rated the Company AA/ to improve the standard of air, in addition to the response to a customer inquiry from a single Internet and Telecommunication companies. Pilot force by January 2011. and government company, which gener- Negative Outlook. many other resources the company invests to re- service representative. participants will be connected by optical fiber to The IEC Technology Innovation Unit (KARAT) invites ates and supplies electricity to all sectors Capital Raising Abroad duce environmental damage. In efforts to improve service, about 25% of the the home (FTTH) via the electricity-grid infrastruc- inventors and entrepreneurs to submit proposals I in Israel, with 99.85% of the Company • In January 2009, IEC raised USD 500 million from The Yam Thetis Group supplied 63% of the natural Company’s strategic customers joined a service ture, will benefit from broad-band internet service for innovative technological ideas in energy and stock owned by the government. Its activities in- the investments banks JP Morgan and CITI Bank in gas and 37% was supplied by Egypt’s EMG. As of arrangement to receive account status updates (110 megabytes per second), and telephone ser- environment. In return, it provides professional, clude: generation, transmission and transforma- the GMTN plan for institutional investors. 2004, Israel’s economy has saved a billion dollars, and consumption data at any given time. Haifa vices on the internet network (VOB). The Company financial, legal, and strategic support to promote tion, distribution, supply and sale of electricity. These bonds were issued and registered for trade compared to the alternative fuel basket had natu- and Jerusalem Districts have already began also intends to install solar antennae on electric- commercial success. In 2009, two companies The Company supplies available, reliable and in the Singapore Stock Market (SGX). ral gas not been integrated into the system. reading meters by the “walk-by” automatic me- ity poles and participates in national efforts to were approved and further efforts are being made high-quality electricity at a reasonable price, • Approximately Euro 133 million were also raised According to the Ministry of National Infrastruc- ter-reading system, allowing for remote meter- increase energy efficiency in factories and institu- to identify additional companies. maintains a leading standard of service, and ad- by loans to finance the import of equipment, ture’s policy, the proportion of electricity gener- reading by hand-held computers. tions by using solar energy and renewable energy Company Involvement in the Community heres to economic, commercial and environmen- mainly to finance the emergency projects. ated by natural gas is limited to 40% of the total Structural Change, Plan for Organizational sources to generate electricity. Israel Electric maintains an extensive network tal principles. Currently, about 13,000 employees Capital Raising Locally generation in the country, due to strategic con- Change and Increased Efficiency In the international arena, IEC has expanded its of community work, based on the belief that it provide service to 2.4 million homes. • In February 2009, IEC raised some NIS 500 mil- siderations of reliability and availability of natural The structural change in the electricity sector is involvement in power station planning projects in has a responsibility and obligation to the com- 2009 – Development Activities lion by private bond issue for institutions. gas as the economy’s principal fuel. Keeping this a complex problem pending for more than ten South Africa, Greece, and Spain. It is also active in munity. There exists a long list of projects with IEC has stood at the forefront of developing the • In March 2009, the Company borrowed NIS 250 in mind and considering Israel’s geopolitical posi- years. During that time the Electricity Sector Law the field of renewable energy (wind, photovoltaic the cooperation of the Ministry of Education, the Israeli electricity sector for 87 years, and over the million from the Discount Bank. tion, there is great significance in energy-source underwent many amendments. At the beginning cells, and hydro-electric energy) and is developing Ministry of Environmental Protection, local au- last decade has invested about USD 9 billion to Debt Payoff diversification in the coming years. of May 2009, Company management, several markets in the Balkans, Turkey, and Africa. thorities, Eshkolot Pais, Taasiyeda, universities, this end. Although the Company is owned almost • During 2009, the Company paid off debts total- Promotion of Sensible Use of Electricity government departments, the Histadrut and IEC The Environment and the Israel Association of Community Centers, entirely by the State, the resources necessary to ing some NIS 5,619 million. and Energy Efficiency Workers’ Union agreed to start negotiating the As a result of IEC’s activity in environmental con- and others. finance company development budgets originate Electricity Demand and Peak Load In 2009, IEC continued to promote a national structural changes in the electricity sector, orga- servation, the Company has succeeded in signifi- The many activities specially singled out are: the from independent sources by raising capital lo- Electricity generation totaled 53,267 million KW in plan to save electricity, to prevent situations of nizational changes and efficiency increase. In the cantly reducing emissions per KWH, including CO2 “Young Leadership” Project in cooperation with the cally and abroad and are not funded from the 2009, about 2.3% less than 2008. This decrease electricity shortage management and reduce the beginning of 2010, the parties began their talks emissions, known as the global greenhouse gas. Israel Management Center (IMC); “Green Sparks State budget. was a result of the economy crisis that contributed urgency for installation of additional generation that continue currently, to reach an understanding This was achieved by the integration of natural Electricity” Project, an educational-community In 2009, the construction of two gas turbines in to an 8% decrease in industrial consumption. The units. Demand Side Management (DSM) has been on all these issues. gas and increasing operation of combined-cycle program for 8th graders; and the “Technicians Ramat Hovav with 236 MW of installed capacity water crisis, too, contributed a 12.5% decrease in another central factor added to the plan; it is a Business Development generating units. This trend in emission reduction and Matriculation” Project, in cooperation with was completed, and electricity generation using electricity consumption for water pumping. long-term plan to change customers’ electricity As of March 2007, IEC began selling its expertise has continued for more than a decade, and is the Manufacturers Association of Israel, awarding natural gas began at Hagit. Commissioning of new Annual peak demand stood at 9,900 MW. consumption habits, towards reducing increase in constructing projects in Israel and abroad aim- expected to continue, as the existing coal gener- a Technicians Diploma – Matriculation Certificate. units and the fast track approach to complete the Continued Entry of Natural Gas into the in electricity demand, in general, and peak ing to achieve a billion shekel income by 2012. ating units are upgraded. The “Nativ HaOr” Project promotes safe and new projects in Ramat Hovav, Hagit, and Eshkol, Electricity Sector demand hours, in particular. The Company also takes commercial advantage The Company insists on using high quality coal sensible electricity use through fun-educational are all part of the emergency projects system the During 2009, the trend to increase the role of The company encouraged its large customers to of the byproducts of the electricity generating (low sulfur content) in its power stations, and con- activities. This year, some 936 schools in 93 local Company has undertaken to reinforce the genera- natural gas in the Company fuel basket continued agree to divert their electricity consumption from process, such as coal ash and gypsum; and en- tinues installing emission reduction measures to authorities throughout the country participated in tion system’s reliability and increase available on account of fuel and diesel oil (the consumption peak-demand to low-demand hours. It promoted courages the development of marine agriculture reduce nitrogen and sulfur oxide emissions. the program with the voluntary assistance of 256 reserves. Another seven new substations were of diesel oil fell by 70%). DSM tariffs and special arrangements such as load nourished by emission gases and the sea water Designing the installation for treating urban sew- company employees and 55 pensioners. started up and 13 kilometers of overhead circuits Fuel usage in 2009: 150,000T of fuel oil compared shedding by private generators, the 20/10 accord used to cool generating units. With the foreseen age was completed at the Orot Rabin Power Sta- Risk Management and Continued were added to the transformation system. with 390,000T in 2008; about 203,000T diesel oil to reduce demand in the summer of 2009, regular- entry of electric cars into Israel, the Company is tion in Hadera; while demolishing and removal of Business Activity At the end of 2009, Israel Electric’s installed ca- compared with 694,000T in 2008 – a decline that ization of photovoltaic installations, etc. preparing a wide range of services to realize its the installation and infrastructure at the fuel store Like all organizations, Israel Electric is exposed pacity totaled 11,664 MW. contributed to a significant reduction in cost and Of course, efforts to save electricity and promote objectives as an essential service provider in this at the Reading Power Station has started. In Alon to risks which may affect its modus operandi and Revenue, Capital Raising and Company emissions; about 12 million tons of coal compared energy efficiency are also practiced by the Com- field. It has instigated business cooperation with Tavor, the use of treated sewage waste water as achievement of objectives. In 2009, IEC carried Rating with 12.7 million tons in 2008; while in 2009, the pany itself as “we practice what we preach.” entrepreneurs involved in the electric car market cooling water for the combined-cycle units was out a number of risk management surveys in its In 2009, company revenues decreased by about use of natural gas rose by 17% from 2.8 million During 2009, the first stage of the Customer Re- to construct the necessary infrastructure. commissioned. IEC continues to ready itself with operational and construction sites, and held pro- 22.5% compared with 2008, and totaled some tons compared with 2.4 million tons in 2008. lationship Management Project was completed. During 2009, Israel Electric was granted a li- the Ministry of Environmental Protection, for the fessional training sessions for division manage- NIS 18 billion (about USD 5.5 billion). Natural gas usage in electricity generation in 2009 Five Contact Centers replaced the 19 that existed cense to establish a pilot in Kiryat Shmoneh with Clean Air Law, which is expected to come into ment and executive assistants. The Company rating, as determined abroad by stood at 33%, an increase of 27%, compared with previously. Once the project is completed, a com- Moody’s, was Baa2/Stable Outlook, while S&P’s 26% usage in 2008. This sharp increase shows puterized system will come on line to manage Address: P.O.B. 10, Tel: 972-4-8182222 Website: rated the Company BBB/Negative Outlook. the Company’s commitment to the environment “customer files” to provide a comprehensive Haifa 31000 Fax: 972-4-8186100 www.israel-electric.co.il