Periodic Report for the Year 2016 Chapter D Additional Details on the Corporation

Periodic Report for the Year 2016

Chapter D Additional Details on the Corporation Africa Israel Investments Ltd.

Regulation 9D Report on liabilities by repayment date For details on the Company’s liabilities by repayment date, see the Immediate Report published by the Company on March 30, 2017 (Ref No. 2017-01-027652). The information contained in the said report is hereby included by way of reference.

Regulation 10A Condensed Quarterly Statements of Comprehensive Income Attached as Appendix A to this Chapter are the condensed statements of comprehensive income, including quarterly statements.

Regulation 11 List of investments in subsidiaries and related companies as at the date of the Statement of Financial Position Attached hereto as Appendix B to this Chapter is a list of investments in subsidiaries and related companies as at the date of the Statement of Financial Position.

Regulation 12 Changes in investments in subsidiaries and related companies Attached hereto as Appendix C to this Chapter are details of the changes in investments in subsidiaries and related companies in 2016.

Regulation 13 Income of subsidiaries and related companies and income of the Company deriving from them, as at the date of the statement of financial position

Attached hereto as Appendix D to this Chapter are details of the income of subsidiaries and related companies, and the Company’s income therefrom, as at the date of the Statement of Financial Position.

Regulation 21 Remuneration of Interested Parties and Senior Officers Set forth below are details of the remuneration1 paid to each of the five officers who receive the highest remuneration among the executives of the Company or of any corporation that it controls, in connection with their service in office in the Company or in such a controlled corporation in 2016 (in NIS thousands):

1 ―Remuneration‖ – includes commitments to provide remuneration, directly or indirectly, and including a monetary amount and anything that constitutes a monetary equivalent, salary, bonus, management fees, consulting fees, rent, commission, interest, share-based payment, retirement compensation that is not a pension payment, a right of enjoyment and any other benefit – excluding dividends. The remuneration amounts in the table are presented in terms of cost to the Company.

Bonus received Bonus % held in in 2016 approved % of full- the for for 2016 Share- Grand time Company’s Salary previous but not based Manage Consulting Name Position position equity (*) years yet paid payment ment fees fees Other Total

Lev Leviev COB of the 31.84% 036 )**( 453,3 - - 5543, - 3, 05,80 (1) Company (***) )****(

Ronen CEO Danya 866% - 85081 - 2,0002 - - - - 45081 Ginzburg (2) Cebus

Shlomo CEO of Mintzer (3) Danya Cebus 866% - 630 1,5302 - - - - 840 55085 operations in the US

Oren Hod (4) CEO Africa 866% - 85443 4,6 5164 - - - - 55566 Residences

Avraham CEO of the Novogrotsky Company 100% - 1,948 - 2005 - - - - 2,148 (5)

(*) Mr. Lev Leviev received their salary in foreign currency. The amounts above have been translated based on the average exchange rate of the dollar in 2016, which was NIS 3.841 to 1 USD. (**) Under a management services agreement between the Company and Memorand Management, a company controlled by Mr. Lev Leviev, according to which Mr. Lev Leviev grants non-executive COB services to the Company, the percentage of a full-time position was not defined. (***) Through companies that he owns and controls, as detailed in Section 1.1.2 of the Description of the Company’s Business. (****) This amount includes management fees paid to a company owned by Mr. Leviev, as stated in Regulation 22 hereinafter, under the management services agreement. Nonetheless, it should be noted that in view of a notice by Memorand Management, which renders noon-executive CBOD services to the Company through Mr. Leviev, of a suspension of the management fees to which it is entitled according to the service management agreement, the Company does not pay the management fees, and these are merely accrued as a liability in respect of management fees in its financial statements.

______1. Bonus that is part of the annual bonus plan for the CEO of Danya Cebus for the year 2016. The amount of the bonus was determined as a function of the annual income of Danya Cebus, subject to conditions and adjustments defined in advance in the employment contract dated September 2015. 2. This amount includes the payments that Mr. Mintzer received in respect of the termination of his service as CEO of Danya Romania, including payment in lieu of advance notice and a special bonus that was approved for Mr. Mintzer in respect of the outcomes of Danya Romania and its record profitability in 2016, and after he led Danya Romania, as its CEO, to high profitability rates in the last six years. 3. A bonus that is part of the annual bonus plan for the year 2016. The amount of the bonus was determined in respect of Mr. Hod’s fulfillment of quantitative targets that were defined as follows: the before tax income of Africa Residence (less revaluation gains)(target fulfillment – 115%); Sales (target fulfillment – 92%), additions to land reserves (target fulfillment – 82% - does not entitle to a bonus for this component), occupancy (target fulfillment – 130%), general and administrative expenses (target fulfillment – 100%), and in respect of supervisor evaluation (target fulfillment – 120%). Mr. Hod’s cumulative weighted rate of target fulfillment regarding Africa Residences, his personal measures, including his supervisor’s evaluation was 110.4%. It should be clarified that the bonus was calculated separately for each indicator according to the rate of fulfillment of the target for each specific indicator. The above amount also includes a special bonus of an insignificant amount, equal to 1.65 monthly salaries, in respect of Africa Residences’ performance and record profitability in 2016. The total amount of the bonus equaled 6 monthly salaries, which is the maximum bonus permitted according to Africa Residences’ remuneration policy and the bonus plan for the year 2016. 4. A special bonus in an insignificant amount, equal to 1.8 monthly salaries, approved by the Company’s BOD on March 30, 2017, for, among other things, the performance of the subsidiaries Africa Residences and Africa Properties and the record profitability in their outcomes in 2016. Approval by the Company’s BOD was granted after the Remuneration Committee approved that said bonus constitutes an insignificant change compared to Mr. Novogrodsky’s terms of employment.

Set forth below are additional details concerning the recipients of the said remuneration:

(1) Lev Leviev Agreement to provide management services The Company receives management services under an agreement dated April 25, 1999, between the Company and Memorand Management (1998) Ltd. (hereinabove and hereinafter, ―Memorand Management‖), a Company owned and controlled by Mr. Lev Leviev, the controlling shareholder in the Company (hereinafter, ―the Management Services Agreement‖). Memorand Management will provide management services to the Company through Mr. Leviev who will serve as the Company’s COB,1 for a monthly consideration of NIS 40 thousand, linked to the CPI of January 1999 (that is, NIS 53 thousand per month as at the date of this Periodic Report), plus VAT as mandated by law. For additional information on the management services agreement, see Note 37(G) to the Company’s consolidated financial statements as at December 31, 2016. On 23 September, 2014, the general meeting of the Company, after having received the approval of the BOD and the Company’s remuneration committee (and after approval of the meeting of the Company’s bondholders series Z and ZA), approved the Management Services Agreement for a further period of 3 years from September 15, 2014. It was also resolved to approve an extension to the letter of indemnification for events that was issued to Mr. Lev Leviev, pursuant to a decision of the general meeting of the Company on January 4, 2012, all pursuant to the terms of indemnification set forth in the letter of indemnification for events. Mr. Leviev’s salary component is in respect of the monthly payment to which he would have been entitled as executive CBOD of AFI Development (USD 100 thousand) until the date on which the sale of AFI Development was concluded. The share-based payment component is in respect of the relative share of this component in 2016, until the date on which the sale of AFI Development was concluded. For further information on Mr. Leviev’s terms of employment in AFI Development and in connection with option warrants, see Regulation

1 It should be noted that taking into account the consideration in respect of the management services described hereinafter, Mr. Leviev receives no additional directors’ remuneration from the Company for his service as the COB of the Company.

21(A)(1) of the Additional Details chapter included in the Company’s Periodic Report for the Year 2015 (Ref. No. 2016-01-016761, hereinafter, ―the 2015 Annual Report‖). The information contained in the said reports in this Section as above has been included by way of reference. (2) Ronen Ginzburg Mr. Ronen Ginzburg serves as the CEO of Danya Cebus since 2009. Mr. Ginzbburg’s monthly salary (gross) is NIS 100 thousand (linked to the CPI of September 2015). Mr. Ginzburg’s employment term is unlimited and both parties may terminate the agreement by advance notice of 60 days, subject to conventional exceptions. Danya Cebus makes available for Mr. Ginzburg’s use a category 6 vehicle and covers all the expenses related to making the vehicles available and grossing up of the tax in respect of the value of its use. Mr. Ginzburg is entitled to benefits as conventionally granted to company CEOs in the Group. According to Danya Cebus’ 2017 bonus plan, Mr. Ginzburg may be entitled to an annual bonus of up to NIS 2 million, as a function of Danya Cebus’ annual income, subject to the terms and adjustments defined in advance in the employment agreement dated September 2015. (3) Mr. Shlomo MIntzer Mr. Shlomo MIntzer has been an employee of Danya Cebus since 2007. Until May 2016, Mr. Mintzer served as the CEO of Danya Romania, and from this date he serves as the CEO of Danya USA. Mr. Mintzer’s employment contract is not limited in time. As at December 31, 2017, Mr. Mintzer’s monthly salary (gross) is USD 22 thousand. Mr. Mintzer is entitled to an annual bonus at the sole discretion of Danya Cebus. Mr. Mintzer’s employment contract states that both parties may terminate the agreement by advance notice of 4 months. Mr. Mintzer is entitled to a use of a vehicle and all the expenses related to the use and maintenance of the vehicle. Mr. Mintzer is also entitled to medical insurance, housing, a mobile phone, reimbursement of per diem expenses for work purposes, participation in certain expenses, an annual vacation, and sick days and recuperation days. (4) Mr. Oren Hod Mr. Hod serves as CEO of Africa Residences since March 15, 2011. His term of employment is unlimited and both parties may terminate the

agreement by advance notice of 60 days, subject to conventional exceptions. After the Report Date, Mr. Hod’s monthly salary is (gross) NIS 85 thousand (linked to the CPI of March 2015) (not including vehicle, bonuses, option warrants, contributions and ancillaries). According to Africa Residences’ 2017 bonus plan (subject to approval of the general meeting), Mr. Hod may be entitled to an annual bonus of up to 9 monthly salaries, subject to achievement of the targets defined in the 2017 bonus plan. Furthermore, according to the three-year bonus plan, Mr. Hod will be entitled to a three-year bonus of up to 4.5 monthly salaries (at the end of the three years of the plan, beginning from 2016), subject to the achievement of the multi-annual target defined in the three-year bonus plan. Africa Residences makes available for Mr. Hod’s use a category 6 vehicle and covers all the expenses related to making the vehicles available and grossing up of the 90% of the tax in respect of the value of its use. Mr. Hod is entitled to benefits as conventionally granted to company CEOs in the Group. (5) Mr. Avraham Novogrodsky For information on the service and terms of employment of Mr. Avraham Novogrodsky, CEO of the Company, see Note 37(M) of the Company’s consolidated financial statements as of December 31, 2016. B. Following are details of the remuneration given to each of the senior Company officers with the highest remuneration who are not included in the table of remunerations above, with respect to their service in the Company, in 2016 (in NIS thousands):

Bonus paid in 2016 in Holding respect Share- in of based Positio Scop compan Salar previou paymen Manageme Consultin Othe Tota Name n e y equity y s years t nt fees g fees r l Avinada v Deputy 140 1,63 - - - - 1,639 - - Grinspo CBOD hours 9 n (6)

(6) Avinadav Grinspon Mr. Avinadav Grinspon serves as Deputy Chairman of the Company’s Board of Directors and also provides it with consulting services in the

sphere of investments and finance, under a Service Agreement signed with him in April 2007, and addenda to the Service Agreement dated July 2008 and August 2014 (jointly, hereinafter, ―the Service Agreement‖). Notably, Mr. Grinspon is not entitled to any separate remuneration in respect of his service as a director in the Company, in addition to the monthly remuneration for the services. For information on the service agreement, see Note 37(H) to the Company’s consolidated financial statements as of December 31, 2016. A. Set out below is a detailed breakdown of remuneration paid in 2016, by the Company or by companies that it controls, to each interested party in the Company who is not a recipient of remuneration as stated in the above tables: Directors’ remuneration and attendant expenses that do not exceed the norm, paid by the Company to all the Company’s directors, totalled NIS 884 thousands in 2016. On December 30, 2010, the Company’s Board of Directors, after having received approval of the Audit Committee at its meeting on December 29, 2010, approved payment of remuneration to all the directors serving in the Company now and in the future from time to time, including the outside directors, but with the exception of the Chairman of the Board of Directors, Mr. Lev Leviev, the controlling shareholder in the Company, who is employed under a separate management agreement, and with the exception of remuneration to Mr. Grinspon, who is not entitled to any additional remuneration as a director under the addendum to the consulting agreement with the Company, pursuant to Regulation 21(C) above.

Regulation 21 A Control of the Company The controlling shareholders in Africa Investments are Mr. Lev Leviev and companies wholly owned and controlled by him.

Regulation 22 Transactions with the Controlling Shareholder or in which the Controlling Shareholders has a personal interest Set forth below are details, to the best of the Company’s knowledge, regarding each transaction with the Company’s controlling shareholder or with respect to which the Company’s controlling shareholder has a personal interest in its approval (hereinafter, ―Transaction with the

Controlling Shareholder‖), which the Company, companies it controls, or its related companies (hereinafter, ―the Group Companies‖) entered into in the Report Year, or at a date later than the end of the Report Year and up to the date of the Report, or which is still in effect as at the date of the Report:

Transactions listed in Section 270 (4) of the Companies Law, 1999

1. Officers Insurance Policies A. The liability of officers of the Company and of several of its subsidiaries (including Mr. Lev Leviev, the Company’s controlling shareholder, and Ms. Tzvia Leviev-Alazorov, the controlling shareholder’s daughter) was insured in the years 2014 and 2015 under an officer’s liability insurance policy. At the date of the Report, the Company has entered into insurance policies insuring the liability of officers for a period from November 1, 2014 until May 1, 2016, and from May 1, 2016 to October 31, 2017. On May 29, 2016, the general meeting of the Company decided to approve and ratify the Company’s entry into officers’ liability insurance policies with a group of insurers in the international insurance market (hereinafter, ―the Insurers‖) for the period from May 1, 2016 to October 31, 2017 (hereinafter, ―the Insurance Period‖), as set forth in the report to convene the meeting, issued by the Company on May 29, 2016 (Ref. No. 2016-01- 036579). The information included in the said report is included herein by way of reference. B. Furthermore, it should be noted that on March 6, 2017, the Company’s general meeting approved adding an option to the policy, that in the event that the Company’s directors insurance policy is not renewed or is cancelled (―the Determining Date‖) and/or in the event of a transaction pursuant to the insurance policy, the Company may purchase a run-off policy in advance, from 7 years from the Determining Date, with respect to claims filed after the Determining Date in respect of events that preceded the Determining Date, under th limits of coverage of the directors insurance (including the co-payments), pursuant to the terms of the policy in effect on the option exercise date. For additional information in connection with said meeting, see the supplementary report to the report of a convention of a meeting published by the Company on February 26, 2017 (Ref. No. 2017-01-016912). The information in the said immediate report is included herein by reference.

2. Indemnification of Officers C. Undertaking of indemnification dated July 1999 For information on the Company’s liability to indemnify the Company’s officers, from July 1999, see Note 36(1)G(3) to the Company’s Consolidated Financial Statements dated December 31, 2016. D. Undertaking of indemnification in relation to the 2007 Shelf Prospectus The Company undertook toward its officers with respect to the shelf prospectus dated 2007. E. Undertaking of indemnification 2009 For details concerning the Company’s 2009 obligation to indemnify the Company officers, See Note 36(1)G(3) to the Company’s Consolidated Financial Statements as of December 31, 2016. F. Undertaking of indemnification dated December 2011 For information on the Company’s obligation, made in advance, to indemnify the directors and other Company officers, dated January 2012, see Note 36(1)G(3) to the Company’s Consolidated Financial Statements of December 31, 2016. G. Undertaking of indemnification of directors and officers dated March 2017 On March 6, 2017, the Company’s general meeting approved granting an undertaking to indemnify Company officers and directors with respect to event. For additional information see the supplementary report to the report of a convention of a meeting published by the Company on February 26, 2017 (Ref. No. 2017-01-016912). The information in the said immediate report is included herein by reference. H. Undertaking to indemnify the controlling shareholder dated September 2014 For information on the Company’s obligation, made in advance, to indemnify the controlling shareholder, dated September 2014, see Section A(1) of Regulation 21 hereinabove. I. Undertaking to indemnify the controlling shareholder dated January 2016 On January 5, 2016, the Company’s general meeting approved that its resolution of January 4, 2012 regarding undertakings to indemnify made in advance by the Company to Company directors and other officers related to specific events that the BOD believes are anticipated in view of the Company’s actual operations, shall also apply to Hagit, Mr. Leviev’s daughter, who will be included (together with the management company through which she renders management services to AFI USA) under the

definition of ―officers‖ as defined in the letter of indemnification of events. J. Indemnification and insurance by subsidiaries The Company’s controlling shareholders and/or their relatives, as well as officers of the Company, serving as directors or as other officers in the Company’s subsidiaries and/or related companies, receive letters of indemnity from certain companies (which include Africa Properties, Africa Residences, and Africa Industries), and their liability is insured under insurance policies, as is customary in these companies. For details concerning the undertakings for indemnification given by the Company’s subsidiaries to their officers, see Note 36(1)G(4) — Note 36(1)G(8) to the Consolidated Financial Statements as of December 31, 2016. 3. Agreement for the provision of management services by a company owned by the Chairman of the Board of Directors and terms of service in a subsidiary of the Company For details concerning the Management Services Agreement between the Company and a company owned by the Chairman of the Board of Directors, and the terms of his service in AFI Development, a subsidiary of the Company, see Section A(1) of Regulation 21 hereinabove. 4. Terms of service and employment of Mr. Avinadav Grinspon For information on the terms of service and employment of Mr. Avinadav Grinspon, who serves as Deputy COB of the Company and also renders consulting services to the Company in their field of investments and financing according to a service agreement signed with him in April 2007, as amended by addenda dated July 2008 and August 2014, and also serves and is employment by Memorand Management (1998) Ltd, which is an interested party in the Company and a company controlled by Mr. Lev Leviev, the COB of the Company and its controlling shareholder, see Note 37(H) to the Company’s consolidated financial statements as of December 31, 2016. 5. The terms of employment of Hagit Sopofiev Leviev in AFI USA. On July 11, 2013, the Company’s Board of Directors (after receiving the approval of the Audit Committee, dated July 4, 2013), approved AFI USA entering into an agreement with Ms. Hagit Sopofiev Leviev (hereinafter, ―Ms. Leviev‖), the daughter of Mr. Leviev, the controlling shareholder of the Company, in which Ms. Leviev rendered general management services

to AFI USA (and corporations that it controls) as an independent contractor, 50% of a full-time position, without any consideration and/or remuneration being paid to her in respect of said services until December 31, 2015. On January 5, 2016, the Company’s general meeting approved the Company’s agreement with Mr. Leviev, and the latter will continue to serve as CEO of AFI USA and corporations in its control (including her service as director in said corporations) in a part-time position (estimated to be 90 hours per month)(hereinafter, ―the Management Services‖). In her capacity in this position, Hagit will continue to be subordinate to AFI USA’s CBOD and act according to AFI USA’s BOD. The general meeting approved that AFI USA will pay LGC USA Holdings Inc. wholly owned by the Company’s controlling shareholder, annual payment of USD 120 thousand (USD 10 thousand per month), in return. For additional information, see the Company’s immediate report dated December 31, 2015 (Ref. No. 2015-01-191583). Furthermore, the general meeting approved that insofar as Hagit requests, AFI USA will modify Hagit’s employment format such that she will become a salaried employee of AFI USA, subject to an examination and determination by the Remuneration Committee that such change does not entail any adverse impact on AFI USA compared to the terms of the management agreement, in the scope and extent of services and in Hagit’s liabilities, on the one hand, and on the total cost of these services to AFI USA, on the other hand, all according to the terms of employment described in paragraph 2.1 of the supplementary employment report published by the Company on December 31, 2015 (ref. no. 2015-01- 191583). The decision to approve said employment was approved by the Company’s BOD on November 29, 2015 after approval of the Remuneration Committee dated November 24, 2015. 7. Acquisition of holdings in AFI Development by the Company’s controlling shareholder For information on the transaction to purchase holdings in AFI Development by the Company’s controlling owner, Mr. Lev Leviev, see paragraph 1.12 to the Periodic Report. Transactions not listed in Section 270 (4) of the Companies Law Non-exceptional transactions with interested parties in the Company

On January 9, 2013, the Company’s Board of Directors, following approval of the Company’s Audit Committee, approved a procedure and criteria for the approval of non-exceptional transactions with interested parties in the Company, pursuant to the provisions of Article 117(A) of the Companies Law, which will be resubmitted for approval once annually. Transactions that are approved in accordance with the aforementioned procedure will be reported pursuant to the relevant provisions of the Companies Law, subject to the Company’s insignificant transactions procedure, as set out below. Insignificant transactions 1. On February 25, 2010, the Company’s Board of Directors decided to adopt guidelines and rules with a view to classification of insignificant transactions as determined in Regulation 41(A)(6)(a) of the Securities Regulations (Annual Financial Statements) 2010. These guidelines and rules will also be used to examine the extent of disclosure in the periodic reports and in the Company’s prospectuses (including in shelf offer reports), in respect of transactions of the Company, a corporation controlled by the Company and its related company jointly with a controlling shareholder or in which the controlling shareholder has a personal interest in its approval as stated in Regulation 22 of the Securities Regulations (Annual Financial Statements) 1970 (hereinafter, ―the Periodic Reports Regulations‖), and in Regulation 54 of the Securities Regulations (Details of the Prospectus and Draft of the Prospectus - Structure and Form) 1969, and also will be used to examine the necessity for publication of an Immediate Report in respect of such Company transactions, as provided in Regulation 37A of the Periodic Reports Regulations. 2. The Company’s Board of Directors has determined that a transaction shall be deemed an insignificant transaction if in relation to it, the following conditions are satisfied: (1) It is not an ―extraordinary transaction‖ (as defined in the Companies Law), in other words, it is executed in the ordinary course of the Company’s business, under market conditions, and is unlikely to have any material effect on the Company’s profitability, assets, or liabilities. (2) The amount of the transaction does not exceed 0.1% of the Company’s equity attributed to its shareholders, according to the most recently published annual financial statements. Notwithstanding the foregoing, a

transaction of an amount of not exceeding NIS 1.5 million will be considered an insignificant transaction. (3) The transaction is also insignificant from a qualitative standpoint. (4) In multi-annual transactions (such as the leasing of a property over a period of several years), the insignificance of the transaction will be examined on an annual basis (for example as to whether the annual rent exceeds the amount stated above). (5) Each transaction will be examined on its own merits, but the insignificance of combined or conditional transactions will be examined cumulatively. (6) In cases in which a question arises as to application of the criteria detailed above, the Company shall exercise its discretion and shall examine the insignificance of the transaction on the basis of the purpose of the Periodic Reports Regulations, and the aforementioned guidelines and rules. (7) The Company’s Board of Directors may, from time to time and at its discretion, amend the guidelines and the rules detailed above. Such amendments will be reported as required by law.1 3. To the best of the Company’s knowledge, in the ordinary course of its business, the Company Group has conducted and/or is conducting transactions with controlling shareholders or in respect of which controlling shareholders have a personal interest in their approval, which are classified by the definition ―insignificant transactions‖ in accordance with the tests detailed above. The said transactions are transactions for the leasing of office and commercial spaces.

Regulation 24 Holdings of Interested Parties and Senior Officers For information on the securities of the Company and its subsidiaries held by interested parties and executive officers of the Company, see the immediate report issued by the Company on January 5, 2017 (Ref. No. 2017-01-001834). The information included in said report is included herein by reference.

Regulation 24A Authorized, Issued Share Capital For details of the Company’s authorized and issued capital, see Note 31 to the Company’s Financial Statements as of December 31, 2016.

1 Up to February 25, 2010, the Company applied a test under which a transaction is was classified as insignificant if the effect on the relevant financial parameter was less than one per cent (1%) and less than 3% in aggregate for the year.

Regulation 24B: The Register of Shareholders: For details of the Company’s Register of Shareholders, see the Immediate Report published by the Company on October 31, 2016 (Ref. No. 2016- 01-069708). The information included in the said Report is included herein by reference.

Regulation 25A Registered Address, Telephone, and Fax Numbers Name of the Company: Africa Israel Investments Ltd. The Company’s registered address is: 4 Derech Hahoresh, Kiryat Savyonim, Yehud, 5647003 Registration Number: 520005067 E-mail address: www.africa-israel.co.il Telephone No. 03–5393535 Fax No.: 03–5939523

Regulation 26 The Company’s Board of Directors Details of the Company’s Board of Directors are listed in Appendix E to this Chapter.

Regulation 26A Executive Corporate Officers

Family Position in member of Year Company, officer or Business Start of subsidiary or in interested experience over date of Name I.D. No. birth interested party party Education the last 5 years service Abraham 55106181 1958 CEO of the No Academic - Served as CEO of 2012 Novogrodsky Company, CEO B.A. Degree in Africa Industries and Director of Business and as CEO of Africa Properties, Administration Packer Steel, a CBOD of Africa from Bar Ilan subsidiary of Industries, COB University, Africa Industries and Director of MBA with subsidiaries and specialization related companies in Finance, in the Group from Bar Ilan University Menashe 054032750 1956 CFO of the No Academic – Serving in his 2011 Sagiv Company and B.A. degree in present position; Director of Economics and Served as CFO in subsidiaries and Business Israel Aircraft related companies Administration, Industries in the Group MBA with specialization in Finance, from Bar Ilan University Ronit Cohen- 535815,3 8606 Comptroller. No Academic – 5668 Nissan Director in Bachelor’s Present position subsidiaries and degree in related companies Accounting in the Group from Tel-Aviv University, MBA from Bar Ilan University. CPA

Amihai 02850531 1971 Internal Auditor No Academic - Deputy Chief 2014 Feivel of the Company Bachelor’s Auditor of Africa and of Degree in Investments subsidiaries in the Business Africa Administration Investments from the Group. College of Management, Master’s degree in Law from Bar Ilan University

Regulation 26B The Company’s Authorized Signatories The Company has no independent authorized signatories.

Regulation 27 The Company’s Auditor The Company’s auditors are: Somekh Chaikin, CPA, 17 Ha’arba’a Street, Tel Aviv; and Deloitte Breitman, Almogor Zohar CPA, of Azrieli Center, Round Building, Floor 44, Tel-Aviv.

Regulation 28 Amendments to the Memorandum of Association or to the Articles of Association in the Reporting Year No amendments were made to the Company’s Memorandum of

Association or Articles of Association in the Reporting Year. Nonetheless, in 2017, an amendment was made to the Company’s Articles of Association, related to the adjustment of the current Articles to Section 50P(B)(2) of Amendment No. 13 of the Anti-Trust Law 1988 regarding indemnification of officers in respect of litigation expenses in administrative proceedings on a breach of the Anti-Trust Law and the provisions of Section 260(B)(1)(a) to the Companies Law 1999 on a separation of the maximum amount of indemnification in respect of a financial liability from the maximum amounts of indemnification in respect of other liabilities and expenses, and the determination of an effective maximum amount of indemnification. For additional information on said meeting, see the supplementary report to the report to convene a meeting published by the Company on February 26, 2017 (Ref. No. 2017-01-016912). The information contained in said immediate report is included herein by reference.

Regulation 29 Recommendations and Resolutions of the Board of Directors and Resolutions of a Special General Meeting A. For information on the resolution of the Company’s general meeting on January 5, 2016 to approve that the resolution of the Company’s general meeting on January 4, 2012 with respect to an undertaking in advance of the Company to indemnify Company directors and other officers with respect to specific events that are, in the opinion of the BOD in light of the Company’s effective operations, are also expected to apply to Ms. Hagit Spofiev Leviev (―Hagit‖), see Regulation 22 hereinabove. B. For information on the resolution of the Company’s general meeting, dated January 5, 2016, to approve AFI USA’s entry into a management services agreement, under which Hagit will render management services to AFI USA, see Regulation 22 above. C. On February 18, 2016, the Company’s BOD resolved to make a partial early redemption of bonds (series Z) in the amount of NIS 211.081 million, early redemption of bonds (series ZA) in the amount of NIS 149.082 million, and early redemption of bonds (series ZB) in the amount of NIS 78.543 million, which were performed on March 14, 2016. For

additional information, see immediate reports dated February 23, 2016 and March 14, 2016 (Ref. No. 2016-01-033433 and 2016-01-005778, respectively). The information included in said reports is included herein by reference. D. On May 29, 2016, the Company’s BOD approved and ratified the Company’s agreement with the Mivtahim Group in the international insurance market, regarding insurance policies to cover officers’ liability for the period from May 1, 2016 to October 31, 2017. For additional information, see the immediate report dated May 29, 2016 (Ref. No. 2016-01-036579). The information included in said report is included herein by reference. E. On July 17, 2016, the Company’s BOD approved a transaction for the sale of AFI Development to the controlling shareholder. For additional information see paragraph 1.12 to the Description of the Company’s Business chapter included in the Periodic Report. F. On September 12, 2016, the Company’s general meeting approved the appointment of Mr. Eran Renato Yarak for a three-year term as an external director in the Company, in effect from that day. For additional information see the immediate report dated September 12, 2016 (Ref. No. 2016-01-121354). The information included in said report is included herein by reference. G. On March 6, 2017, the Company’s general meeting approved an amendment to the Company’s Articles of Association, approved assuming an undertaking to indemnify officers in connection with events, and approved addition of an option to purchase a run-off policy. For additional information see Regulation 22(1)(B) above.

Regulation 29A Company Resolutions

1. Officers Liability Insurance For details concerning the Company’s Contract in an Officer’s Liability Insurance Policy see Regulation 22(1) hereinabove. 2. Indemnification of Officers For details concerning indemnification of the directors and other officers of the Company from 1999, see Regulation 22(2) hereinabove. For details concerning indemnification of the directors and other officers of the Company in relation to the Company’s 2007 Prospectus, see Regulation 22(2) hereinabove. For details concerning indemnification of the directors and other officers of the Company dated in 2009, in connection with certain events that are foreseeable in light of the Company’s actual activities, see Regulation 22(2) hereinabove. For details concerning indemnification of the directors and other officers of the Company from 2011, in connection with certain events that are foreseeable in light of the Company’s actual activities, see Regulation 22(2) hereinabove. For information on indemnification of Company officers dated March 2017, in connection with events, see Regulation 22(2) above. 3. Waiver of claims as part of the Arrangement. For details as to the various provisions concerning the waiver of claims and grant of exemption as part of the Company’s debt Arrangement, see Note 37 to the Company’s Consolidated Financial Statements as of December 31, 2016.

Date: March 30, 2017

Africa Israel Investments Ltd.

Avraham Novogrodsky Menashe Sagiv CEO CFO

Appendix A

Condensed Quarterly Statements of Comprehensive Income (in NIS thousands)

For the year ended December 31, Apr-June 2016 Jan-Mar 2016 2016 Jul-Sep 2016 Oct-Dec 2016 (Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues Construction and real estate transactions 4,425,272 1,011,606 958,724 1,252,748 1,202,194 Rentals and operation of properties 360,208 89,287 89,489 88,557 92,875 Industry 1,630,156 438,081 393,339 451,047 347,689 Share in income of equity- accounted investees 19,703 4,862 6,952 11,396 (3,507) Increase (Decline) in fair value of investment property, net 499,976 196,968 5,798 115,561 181,649 Increase (Decline) in fair value of investment property under construction, net 12,387 24,084 1,287 (3,142) (9,842) Other income 26,671 1,346 2,821 340 22,164 6,974,373 1,766,234 1,458,410 1,916,507 1,833,222

Costs and expenses Construction and real estate 4,128,541 931,083 891,148 1,157,310 1,149,000 transactions Maintenance, supervision and management of real estate and other properties 21,709 5,247 5,224 7,826 3,412 Industry 1,551,656 416,412 384,782 417,959 332,503 Administrative and general 209,518 50,512 51,357 50,048 57,601 expenses Amortization of intangible assets 255,551 5,247 5,224 7,826 3,412 and other expenses 6,166,975 1,415,762 1,372,571 1,653,518 1,725,124 Operating income 807,398 350,472 85,839 262,989 108,098 Financing expenses (679,180) (160,632) (175,543) (186,754) (156,251) Financing income 27,107 4,601 5,224 8,489 8,793 Financing costs, net (652,073) (156,031) (170,319) (178,265) (147,458) Income (Loss) from ordinary operations before taxes on income 155,325 194,441 (84,480) 84,724 (39,360) Taxes on income (225,211) (62,258) (22,522) (52,275) (88,156) Income (Loss) from continuing operations (69,886) 132,183 (107,002) 32,449 (127,516) Loss from discontinued operations (after tax) (2,582,979) (116,829) (82,752) (2,383,398) - Income (Loss) for the period (2,652,865) 15,354 (189,754) (2,350,949) (127,516) Attributed to: Holders of rights in the Company’s equity (2,733,061) (40,706) (163,348) (2,407,413) (121,594) Minority interests 80,196 56,060 (26,406) 56,464 (5,922) Income for the period (2,652,865) 15,354 (189,754) (2,350,949) (127,516)

Appendix B Investments in Subsidiaries and Related Companies

Company’s share in Value in the Share in issued Stock net income/ Other holders who own more than Cost in NIS Company’s Separate share capital, voting exchange price Company name Par value losses from the 25% of the shares in subsidiaries and thousands Financial Statements, rights and the right on reporting purchase date, in NIS related companies, and their interests in NIS thousands to appoint directors date thousands Af-Sar Ltd (28) 058,1 866%

Africa Israel Properties Ltd. Public company (3)(6) 8,56435304 853115083 )485830( 853,35341 ,,.64% 05,61 Mirage Development Israel Ltd holds 45% of the issued share capital. Tiferet Haifa Quarries Ltd. (2) 8165666 3,% Hamichonit Haifa Ltd. Holds 10% of the issued share capital Givat Savyon Ltd. (28) 41544, 1,%

Flamingo Ltd (28) 555,6 866% Ganden Properties and Investments Lev Talpiot Management 600 60% (2000) Ltd holds 40% of the issued share and Maintenance Ltd (27) capital. Raul Fairmont Properties LP owns 51% One Half Jubilee Ltd. (4) 36 36% of the issued share capital Africa Israel (Finance) 1985 8665666 503 866% Ltd. 05 456

Netzer Nesharim Ltd (28) 566 866%

M.S.A. Efrat Investments 135111 866% Ltd (33) D.B.M. Harel Investments 135111 866% (2006) Ltd. (33) Africa Israel Residences Ltd. 654145636 6 )0,5410( )0,5410( 33.54% 35336 Public company (3)(6)(18) Egged Holdings Ltd holds 20% of the issued share capital, and three additional MTS Ltd. 56 -- 56% companies each hold 20% of the issued share capital Africa Israel Investment 606 4654,6 )565333( 65085 866% House Ltd. Africa Israel Mutual Fund Management Ltd. (12) – in 865666 866% voluntary liquidation Fortswell Trading Limited EUR 1,000 774 100% (9)

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company’s share in net income/ Losses, capital funds, Value in the Company’s Share in issued share net, from the Separate Financial capital, voting rights Stock exchange Other holders who own more than 25% of Cost in NIS purchase date, in Statements, in NIS and the right to price on the shares in subsidiaries and related Company name Par value thousands NIS thousands thousands appoint directors reporting date companies, and amount of their interests Africa Israel Trade and 865566 6 866% Agencies Ltd. 5645066 5645066 35.60% Public company Africa Israel Industries Ltd. (3) 858,45,55 5455606 )45056,5( )645614( 35466 Packer Construction Steel – 100% Registered Partnership Givat Shmuel Hahadasha Ltd 1,000 50% (4)(22) P.A. Development and Construction in Jerusalem Ltd. 866 ,6% (4)(22)

Someil Towers Ltd. (4)(22) 85666 ,6%

Ram-Nah Ltd. (35) ,3, ,3.,%

Zvi Yavetz and Co. Ltd. (35) 35165 866%

Meidan Carmel Ltd. (35) 6.68 866%

Packer Steel Industries Ltd. (9) 8451345,16 866%

Negev Ceramics Ltd. (9) 653635584 866%

Orgal E.L.P. (2007) Ltd (8) 556665666 866%

Via Arcadia Home Design Ltd 86658,4 866% (8) Super Ceramic Home Finishing 100% Products – RP (56) H.G.Y.Y Building Products 35333 866% Marketing Ltd (8) Negev Home Design Ltd (8) 556665666 866%

Negev Ceramics Marketing ,6 866% (1982) Ltd. (8)

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company’s share Stock in net income/ Net Value in the Share in issued share exchange losses from the Company’s Separate capital, voting rights price on Other holders who own more than 25% of the shares in Cost in NIS purchase date, in Financial Statements, and the right to reporting subsidiaries and related companies, and amount of Company name Par value thousands NIS thousands in NIS thousands appoint directors date their interests Nitzan Sdera Management and Development Ltd owns Maklef 51 Ltd. (48) ,66 ,6% 50% of the issued share capital and 40% of the management shares Negev Ceramics Marketing Samir Awad owns 50% of the issued share capital ,6 ,6% Nazareth Ltd. (48) El-Gal Marketing Com Ltd. El-Gal Acrylic Industries Ltd owns 49.9% of the issued 85665 ,6.8% (48) share capital Dana Regalo Ltd. owns 50% of the issued share capital N.D.R. Design Ltd. (48) ,66 ,6%

P.L.E. Lighting Engineering Mar Telecom, Lev Ophir Group Ltd and Nadler Tal and Co 05543 43.,% Ltd. (24) Ltd each own 25% of the issued share capital

Negev Romania SRL (48) 35666 66.16%

Packer Quality Metals Ltd 054665668 866% (60) Packer YDPZ Profiles Ltd. 8053365666 866% (60) Packer YDPZ Profile 85666 866% Marketing Ltd. (47) Packer YDPZ Galvan Works 55866 866% Ltd. (60) Imku YDPZ Industries Ltd. ,658,6 866% (60)

Koa Gas LLC (51) RUB 865666 866%

Packer YDPZ Investments 85666 866% Ltd. (60) Contek Electronic Equipment Solomon and Sasbon Equipment Industries (1989) owns 4,65666 ,6% Ltd (43) 50% of the issued share capital.

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company name Par value Cost in NIS Company’s Value in the Company’s Share in issued share Stock exchange Other holders who own more than 25% of thousands share in net Separate Financial capital, voting rights price on reporting the shares in subsidiaries and related income/ Statements, in NIS and the right to date companies, and amount of their interests losses from the thousands appoint directors purchase date, in NIS thousands Packer Steel Investments 6 866% (1963) Ltd. (9) Packer Steel Trading (1981) ,5,665686 866% Ltd. (9)

Yamko International Srl (50) EUR 10,000 866%

Earsfield Steels Limited (9) EUR 805033 866%

N. Packer Ltd. (9) 85666 866%

Packer Steel Finance and 85666 866% Issuances (1982) Ltd. (42)

Danya Cebus Cyprus (26) 85666 866%

Rumbrol Trading Limited 166 63.0% (26)

Danya Cebus ROM SRL (23) RON 200 866%

Cebus Rimon Industrialized 866 866% Construction (18)

Danya Cebus Ltd. (37) 8456165335 4445484 115115 3555863 866% Danya International Holdings 100 866% Ltd. (18)

Forma Projects Ltd. (18) 100 866%

Yovelim Personnel Ltd. (18) 556665666 866% Danya Cebus Ltd – A. Luzon Properties and Investments 50% Ltd – Joint Venture (38)(45) Danya Cebus Ltd Z.M. Hammerman Ltd – Joint 50% Venture (38)(45) IMB Israel Metro Builders 49 40% (45) Africa Urban Renewal Ltd 100 100% (formerly Africa 38 Ltd) (35) 22

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company name Par value Cost in NIS Company’s Value in the Company’s Share in issued share Stock exchange Other holders who own more than 25% of thousands share in net Separate Financial capital, voting rights price on reporting the shares in subsidiaries and related income/ Statements, in NIS and the right to appoint date companies, and amount of their interests losses from the thousands directors purchase date, in NIS thousands

Geo-Danya Ltd. (4)(45) 5.1 50%

Danya Cebus Manpower Ltd. 100% (18)

Alum Danya Ltd. (18) 100%

Danya Sela Concrete 50% Pumping Ltd (2)(45)

Bat Savyon Ltd. 6.8 - (6,138) (6,138) 866%

Danya Cebus Mafil Ltd. (18) 85666 866% Danya Cebus and CCICS - RP (45)(38) Registered 50% Partnership

Netivei Hayovel Ltd. (2) (45) 855,6 5,%

Africa Israel Hotels Ltd. (4) ,153615883 6,5666 ,65318 83,5318 ,6% Aspen Group Ltd and Tashloz Investments and Holdings Ltd each own 33.33% of the E.M.T. Neve Savyon Ltd. (4) 85666 - )865( )865( 44% issued share capital and voting rights and management shares. Derech Eretz Construction Joint Venture Registered 44.4% Partnership (4)(45) A partnership of Housing and Construction Derech Eretz Joint Venture – Solel Boneh - Infrastructure Development, ,6% 18 (4)(45) Housing and Construction – Solel Boneh Infrastructure Ltd, and Danya Cebus Ltd. Housing and Construction Ltd. owns Israel Canada Rapid Road 21.58% of the issued share capital and the ,5050 13,343 58.,1% Management Ltd . (2) 45305 83586, remainder is owned by Alon Gas Chains Management and Operation (1999) Ltd.

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Value in the Company’s share in Company’s Share in issued net income/ Separate share capital, Stock losses from the Financial voting rights and exchange Other holders who own more than 25% of the shares in Cost in NIS purchase date, in Statements, in the right to price on subsidiaries and related companies, and amount of their Company name Par value thousands NIS thousands NIS thousands appoint directors reporting date interests Derech Eretz Highways Israel Canada Rapid Road Management Ltd owns 51% of Management Corporation Ltd. - - 05460 05460 4,.,6% the issued share capital, and Housing and Construction Ltd (2) (34) owns 24.5% of the issued share capital. Netivim Mishtalvim Ltd. Israel Canada Rapid Road Management Ltd owns 51% of (formerly Road Systems Section 85000 85000 4,.,6% the issued share capital, and Housing and Construction Ltd 18 Ltd.) (2)(34) owns 24.5% of the issued share capital. Advanced Road Systems Ltd. 4,.,6% (34)(2) Israel Canada Rapid Road Management Ltd owns 51% of Derech Betucha Bakvishim Ltd.

(2) (34) 35641 35641 4,.,6% the issued share capital, and Housing and Construction Ltd owns 24.5% of the issued share capital. Kalia Investments and

Development of North Dead Sea 44.4% Israel Canada Rapid Road Management Ltd owns 51% of Derech Hazafon Operation and

Control Ltd. (2)(34) 85336 85336 4,.,6% the issued share capital, and Housing and Construction Ltd owns 24.5% of the issued share capital. Israel Canada Rapid Road Management Ltd owns 51% of Netivei 431 Operation and

Control Ltd. (2)(34) 85364 85364 4,.,6% the issued share capital, and Housing and Construction Ltd owns 24.5% of the issued share capital. Israel Canada Rapid Road Management Ltd owns 51% of Netivei Hacarmel Systems and

Operation Ltd. (2)(34) 35663 35663 4,.,6% the issued share capital, and Housing and Construction Ltd owns 24.5% of the issued share capital. Israel Canada Rapid Road Management Ltd owns 51% of Advanced Solutions – Highway the issued share capital, and Housing and Construction Ltd Systems (2)(34) 55385 55385 4,.,6% owns 24.5% of the issued share capital.

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company’s share in Stock net income/ Value in the Share in issued exchange losses from the Company’s Separate share capital, voting price on Other holders who own more than 25% of the shares Cost in NIS purchase date, in NIS Financial Statements, rights and the right reporting in subsidiaries and related companies, and amount of Company name Par value thousands thousands in NIS thousands to appoint directors date their interests Chaina Civil & Danya 49% Joint Venture (38)(45) Danya Cebus – Electra Bank of Israel 50% Construction (38)(45) Ramgur Investments Ltd owns 40% of the issued Afriram Ltd.(22) 366 - -- -- 36% share capital and Ge’ulat Hkrach Ltd owns 20%. Mapal Communications Noa M.B. Communications Ltd owns 82.5% of the 5,8 ------83% Ltd. (2)(57) issued share capital. Africa Israel International 866 846 )815135( )815385( 866% Holdings Ltd. (10) Africa Israel International Investments (1997) Ltd. 100 -- )556,45613( )556,45613( 100% (10) Africa Israel International Properties (2002) Ltd. 100 100% (28) (10) AIEE Overschie B.V. (21) EUR 865600 866% in voluntary liquidation

CZK 8665666 866% Adut s.r.o (16)

M.I.C.C Prague s.r.o. (16) CZK 8665666 100%

Balabenka s.r.o. (16) CZK 8665666 866%

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company’s share Stock in net income/ Value in the Share in issued share exchange losses from the Company’s Separate capital, voting rights price on Other holders who own more than 25% of the shares in Cost in NIS purchase date, in Financial Statements, and the right to reporting subsidiaries and related companies, and amount of Company name Par value thousands NIS thousands in NIS thousands appoint directors date their interests

Afiem Cyprus Limited CYP 1 866% (16)

Faringer Enterprises CYP 2,000 866% Limited (16)

Contronceni Investments CYP 500 866% Limited (16) 866% Broadway Creseus s.r.o. CZK 8665666 (16) AFI Project 1 S.P.Z.O.O. PLN 5,000 866% (16) AFI Project 2 S.P.Z.O.O. PLN 5,000 866% (16)

AFI Europe Czech CZK 8665666 866% Republic s.r.o (16) CZK 50 50% Praha Sen s.r.o. (7)

AFI Palace Brasov SRL RON 10,000 866% (16) AFI Global Park SRL (16) RON 10,000 866%

Tulipa Modranska Rokle CZK 200,000 100% s.r.o. (16)

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company’s share Stock in net income/ Value in the Share in issued exchange losses from the Company’s Separate share capital, voting price on Other holders who own more than 25% of the shares Cost in NIS purchase date, in Financial Statements, rights and the right reporting in subsidiaries and related companies, and amount of Company name Par value thousands NIS thousands in NIS thousands to appoint directors date their interests

Tulipa Rokytka s.r.o. (16) CZK 100,000 100%

Classic Park Group s.r.o. (16) CZK 200,000 100%

Tulipa Trebesin s.r.o. (16) CZK 100,000 100%

Classic Park iii s.r.o. (16) CZK 200,000 100%

Classic 7 s.r.o. (61) CZK 200,000 100%

Intrastar International Ltd. Mariner Voyager, Velemento Investments Ltd, Aryeh USD 16,254 53.7% Bachar, and Gil Geva own 46.3% of the issued share ( ) 16 capital. Galway Consolidated Ltd. EUR 29,000 100% (44)

Airport City d.o.o. (55) EUR 20,246 100%

AFI Europe N.V. (21) EUR 930,000 100%

AFI Europe Financing B.V. EUR 18,000 100% (16) AFI Properties Berlin B.V. EUR 815666 92.8% (63)(16) AFI Properties Developers Shikun and Binuy Real Estate Development BV, Aminim EUR 1,001 45.02% B.V. (31) Holdings and Underwriting (1996) Ltd, and Gil Dekel

Direct Capital S d.o.o. (36) RSD 40,304 100%

AFI Properties Development EUR 815666 92.8% B.V. (16)(63) AFI Properties Logistics B.V. EUR 815666 92.8% (16)(63)

AFI Properties B.V. (16)(63) EUR 815666 92.8%

Airport City Property EUR 500 866% Management d.o.o. (54)

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Vitosha Gardens EOOD (16) BGN 500,000 866%

Malina Gardens EOOD (16) BGN 500,000 866%

AFI Lagera Tulip EOOD (16) BGN 100 866%

Plovdiv Logistic Center EOOD ALBIS Holdings B.V. owns 25% of the issued 50,000 3,% (16) share capital. Cotroceni Park SA (29) RON 1,897,814.1 98%

Star Estate SRL (16) RON 200 866%

Europe Logistic SRL (16) RON 10,000 866% AFI Europe Management SRL RON 200 (16) S.C. Bowling Managements RON 1,000 100% SRL (39) ROI Managements SRL (16) RON 1,000 866% Premier Team & Solutions SRL RON 1,000 866% (16) Tulip Management SRL (16) RON 1,000 866% Plaza Arad Imobiliar SRL (16) RON 1,000 866% Szepliget Kft (16) HUF 3,000,000 866% Akar- Lak Kft (16) HUF 3,000,000 866% Novo Maar SP Z.O.O. (16) PLN 1,000,000 100% AFI Zlota 83 SP Z.O.I. (16) PLN 1,000,000 100%

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

AFI Management SP. Z.O.O. (16) PLN 50,000 866%

SIA AFI Management (16) LVL 2,000 866% LVL SIA AFI Investment (16) 866% 12,713,482 SIA A.R Holdings )83( LVL 5,000 866% SIA B.R. Holdings (16) LVL 3,273,580 866% SIA Anninmuizas ĪPAŠUMS (25) LVL 5,000 866% AFI Germany GmbH (16) EUR 5,5666 866% AFI Germany Investment & Co. EUR 5,5666 866% GmbH (16) Harel Grundstücks GmbH and Co. EUR 5,5666 866% KG )84( Peerly Grundstücks GmbH and Co. EUR 17,566 866% KG (11) AFI Europe (Israel Branch) Ltd. (16) 866 866% AFI Europe Hungary Kft (16) HUF8665666 866% Shikun and Binui Real Estate Development B.V. HUF Pro-Mot Hungaria Kft (31) ,6% owns 50% of the remainder of the nissued share 10,000,000 capital. Tulipa City s.r.o. (16) CZK 8665666 866% Premium Property Management BGN 5,000 100% EOOD (16)

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Company’s share in net income/ Value in the Share in issued Stock losses from the Company’s Separate share capital, voting exchange price Other holders who own more than 25% of the Cost in NIS purchase date, in Financial Statements, rights and the right on reporting shares in subsidiaries and related companies, Company name Par value thousands NIS thousands in NIS thousands to appoint directors date and their interests Veroskip Trading SRL(16) RON 200 866% AFI Park 2 SRL (16) RON 1,000 866% AFI Park Building 3 SRL RON 1,000 866% (16) AFI Park Offices 4&5 RON 1,000 100% SRL (16) AFI Palace B.Noi SRL RON 1,000 866% (16) Margalit Grundstücks EUR 5,5666 100% GmbH & Co. KG )56( Margalit Teltower Damm Grundstücks GmbH & Co. EUR 5,5666 866% KG )8,( in liquidation AFI Corporate Financing 866% B.V. (16) AFI Mixed Use Project 96% B.V. (16) Orchid Group d.o.o. (1) 866% Business Park Varna BGN 33,555,300 866% E.O.O.D. (16)

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Share in Company’s Value in the issued share share in net Company’s capital, income/ Separate voting losses from the Financial rights and Other holders who own more purchase date, Statements, in the right to Stock exchange than 25% of the shares in Cost in NIS in NIS NIS appoint price on reporting subsidiaries and related Company name Par value thousands thousands thousands directors date companies, and their interests AI Holdings (USA) Corp.)46( USD 1,000 866% AI Properties and Developments 866% (USA) Corp.)30( Boymelgreen Family LLC owns 60 Spring Street, LLC )45( 0,% 35% of the issued share capital 20 Pine Street, LLC (58) ,6% 20 Pine Street Managers LLC (32) ,6% 15 Broad Street LLC (62) 866% Boymelgreen Family LLC owns 15 Broad Street Managers LLC )45( 0,% 35% of the issued share capital.. Danya Cebus Holdings U.S. Inc. (18) 866% Danya Cebus Development 866% LLC )36( Danya Cebus Construction LLC (49) 866% 85 Adams Street LLC (59) 106%

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

Share in issued share Company’s capital, share in net Value in the voting income/ Company’s rights losses from the Separate and the Other holders who own more purchase date, Financial right to Stock exchange than 25% of the shares in Cost in NIS in NIS Statements, in appoint price on reporting subsidiaries and related Company name Par value thousands thousands NIS thousands directors date companies, and their interests Boymelgreen Family LLC owns 85 Adams Street Managers LLC )45( 36% 35% of the issued share capital.. Leviev Fulton Club LLC (53) 50% Africa Israel Marquis Developers 866% LLC (40) 50% of the issued capital is held LFC Mezz LLC (53) 50% by Fulton Club LLC AI Fulton LLC (32) 866% AI Florida Holdings, Inc. (46) USD 2 866% AI 229 West 43rd Street Senior ,6.8% Mezzanine, LLC ),5( AI 229 West 43rd Street Property ,6.8% Owner LLC )86( AI 229 West 43rd Street Member 100% LLC (32) AI FM 229 West 43rd Street JV 50.1% Holdings LLC (41) Africa Israel Marquis Managers LLC 866% (40) TMDC Construction Company THB 45 million 45% Limited (2) Investments Savyon holds Savyon Nurseries Ltd (2) 0.366, 017,4 015,4 ,1444 1,% 78.97% of the issued share capital

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

(1) A subsidiary of AFI Mixed-Use Project B.V. (2) An associated equity-accounted company. (3) Shares of this company are traded on the TASE. (4) Jointly controlled equity-accounted companies. (5) Subsidiary of Overschie B.V. A.I.E.E. (6) Bonds of this company are traded on the TASE. (7) Investee of Africa Israel International Investments (1997) Ltd. (8) Subsidiary of Negev Ceramics Ltd. (9) Subsidiary of Africa Industries Ltd. (10) Has interests in international companies that operate overseas. (11) Investee of AFI Properties B.V. (70%) M.S.A. Efrat Investments Ltd (15%) and D.B.M. Harel Investments (2006) Ltd (15%). (12) Investee of Africa Israel Investment House Ltd. (13) Investee of AFI Properties Logistics B.V. (70%) M.S.A. Efrat Investments Ltd (15%) and D.B.M. Harel Investments (2006) Ltd (15%). (14) Subsidiary of AFI Investment SIA. (15) Investee of AFI Properties Development B.V. (70%), M.S.A. Efrat Investments Ltd (15%), and D.B.M. Harel Investments (2006) Ltd (15%). (16) Subsidiary of AFI Europe N.V. (17) Subsidiary of Africa Israel International Holdings Ltd. (18) Subsidiary of Danya Cebus Ltd. (19) Investee of AI 229 West 43rd Street Senior Mezzanine LLC. (20) Investee of AFI Properties Berlin B.V. (70%) M.S.A. Efrat Investments Ltd (15%) and D.B.M. Harel Investments (2006) Ltd (15%). (21) Subsidiary of Africa Israel International Properties (2002) Ltd. (22) Investee of Africa Israel Residences Ltd. (23) Subsidiary of Danya Cebus Cyprus Lrd. (24) Associate of Packer Steel Industries Ltd. (25) Subsidiary of SIA B.R. Holdings. (26) Subsidiary of Danya International Holdings. (27) Investee of Flamingo Ltd. (28) Subsidiary of Africa Israel Properties Ltd. (29) Subsidiary of Controceni Investments Ltd. (30) Subsidiary of Africa Israel International Investments (1997) Ltd. (31) Investee of AFI Europe N.V. (32) Subsidiary of AI Properties and Developments (USA) Corp (33) Subsidiary of AFI Europe N.V., holds 15% interest in four German companies: Margalit, Peerly, Margalit TD, Harel. (34) Investee (24.5% directly held and 11% held in concatenation through Israel Canada Rapid Highway Management Ltd)(Cost of investment constitutes a direct investment only). (35) Subsidiary of Africa Israel Residences. (36) Subsidiary of AFI Project Developers B.V. (37) Held by the Company and by Africa Israel Trade and Agencies Ltd. The amounts constitute only the direct investment made through the Company. (38) Jointly controlled presented on the basis of proportionate consolidation. (39) Subsidiary of AFI Europe Management SRL. (40) Subsidiary of AI Florida Holdings Inc. (41) Subsidiary of AI 229 West 43rd Street Member LLC (42) Subsidiary of N. Packer Ltd. (43) Associate of Packer Quality Metals Ltd. (44) Subsidiary of Intrastar International Ltd. (45) Investee of Danya Cebus Ltd. (46) Subsidiary of AI Holdings (USA) Corp (the company merged with AI Properties and Development).

Appendix B Investments in Subsidiaries and Related Companies – Cont’d

(47) Subsidiary of Packer YDPZ Profiles Ltd. (48) Investee of Negev Ceramics Marketing (1982) Ltd. (49) Investee of Danya Cebus Holdings US Inc. (50) Subsidiary of Fortswell Trading Limited. (51) Subsidiary of Earlsfield Steels Limited. (52) Investee of AI FM 229 West 43rd Street JV Holdings LLC (53) Investee of AI Fulton LLC. (54) Subsidiary of Airport City Belgrade d.o.o. (55) Subsidiary of Intrastar International Ltd. (85%) and Galway Consolidated Ltd. (15%) (56) Investee of Via Arkadia Home Design Ltd. (57) Investee of Trade and Agencies Ltd. (58) Subsidiary of 20 Pine Street LLC. (59) Subsidiary of 85 Adams Street Managers LLC. (60) Investee of Packer Steel Industries Ltd. (61) Subsidiary of Faringer Enterprises Ltd. (62) Subsidiary of 15 Broad Street LLC. (63) AFI Europe provided 100% of the shareholders’ equity and owners’ loans.

Africa Israel Investments Ltd. December 31, 2016

Appendix B

Company NIS Loans and capital notes thousands Africa Israel International 85366585, Unlinked capital note, bearing no interest. Issued on July Investments (1997) Ltd. 1, 2008. Maturity date not before July 2, 2013. Africa Israel International 742,383 Unlinked capital note, bearing no interest. Issued on Investments (1997) Ltd. October 1, 2008. Maturity date not before October 2, 2013. Africa Israel International 805431 Unlinked capital note, bearing no interest. Issued on Investments (1997) Ltd. December 30, 2008. Maturity date not before December 31, 2013. Africa Israel International 36,5680 Constituting 64 capital notes, unlinked and not interest Investments (1997) Ltd. bearing, issued on July 1, 2011, maturity date will be July 2, 2016. Bat Savyon 05841 Unlinked capital note bearing no interest. Africa Hotels Ltd. 33,157 Unlinked owners’ loan, bears annual interest of prime interest +1.8%. Maturity no later than January 1, 2018. A.M.T. Neve Savyon Ltd. 102 Unlinked owners’ loan, bears annual interest of 3.05% as at December 31, 2016. Africa Industries 51,959 Unlinked owners’ loan, bears annual interest of prime interest +1.5%. Maturity date is December 31, 2017.1

1 Africa Industries may request to extend the maturity date to December 31, 2018, by written notice to the Company, subject to the Company’s approval. If the maturity date is postponed, the interest rate in the period between December 31, 2017 and December 31, 2018 is prime plus a margin of 2% per annum, and the maturity date for the purpose of the loan terms shall be the end of the postponement period, that is December 31, 2018. Furthermore, Africa Industries may discharge the loan at any time (including make payment of accrued interest up until the early repayment date), even before the maturity date. Africa Industries shall not pay any early repayment fine of any type related to the early repayment of the loan. 35

Appendix C

Africa Israel Investments Ltd. Changes in Investments in the Reporting Period January 1, 2016 - December 31, 2016 (in NIS Thousands)

1. In the period of the report, dividends were received from the companies as follows (in NIS thousands):

Name of Company’s Share Company in the Dividend

Mafil Group Companies 4,616 Africa Israel Trade and Agencies Ltd. 806

2. In July 2016, the Company announced that it was negotiating with Mr. Lev Leviev, the Company’s controlling shareholder, the trustees, and the representatives of bondholders (series Z, ZA, and ZB), to develop an agreed outline to sell the Company’s entire interests in AFI Development, the subsidiary through which the real estate activities in Russia were made (hereinafter, ―AFI Development‖) to the Company’s controlling owner. On August 5, 2016, all the conditions precedent for the conclusion of the sale obtained according to the dates defined therein, and on September 7, 2016 the sale was concluded (hereinafter, ―the Closing Date‖). On the Closing Date, a Company controlled and completely owned by Mr. Leviev (hereinafter, ―the Acquiring Company‖) transferred the entire consideration in respect of AFI Development’s shares in the amount of NIS 550 million (hereinafter, ―the Consideration‖) to trust accounts in the names of the trustees of the bondholders (series Z, ZA, and ZB) and the Company and the trustees respectively transferred the shares of AFI Development (including the shares of AFI Development that were charged in favor of the bondholders) to the Acquiring Company. Furthermore, on the Closing Date, additional and supplementary actions were taken as agreed in the sales transaction, including signing a purchase option agreement, a waiver and release, and a notice of termination of the management agreement between the Company and AFI Development.

Africa Israel Investments Ltd. December 31, 2016

Appendix D

Africa Israel Investments Ltd. Income of and from Subsidiaries and Related Companies

Dividend Dividend Interest received received Management Management received by up to the after the fees fees the date of date of received up received Company the the to the date of after the date or that it is statement statement the of the entitled to of of statement of statement of receive Income (Loss) Income (Loss)2 financial financial financial financial from any before tax after tax position1 position position position company Africa Israel 461566, 4335614 - - 35456 - 36 Properties Ltd.* Africa Israel Investment ),565,( ),565,( - - - - 41 House Ltd. Danya Cebus 5585,,4 8355516 - - 45811 366 - Ltd.* Africa Israel )845336( )835681( - - - - 8851,0 Hotels Ltd.* Africa Israel )5385633( )510585,( - - - - 85,,6 Industries Ltd. Israel Canada Rapid Road ,35836 355,13 85348 - - - - Management Ltd. Africa Israel Trade and 385,66 385,66 - - - - , Agencies Ltd. Africa Israel International )4458,6( )465086( - - - - 865 Investments (1997) Ltd.* Derech Eretz Management 4,5513 505533 553,6 - - - - Corporation Ltd. Derech Hatzafon Operations and 85034 85543 34, - - - - Maintenance Ltd. Savyon 555,63 835418 - - - - 31 Nurseries Ltd. Netivei Hacarmel 15606 05653 - - - - - Operations and Control Ltd. Derech Betuha 35001 45,66 - - - - - Bakvishim Ltd

* Includes subsidiaries and investee companies owned by this company. 1 The data relate to the Company’s share. 2 The data, including for companies not wholly owned by the Company, refer to the comprehensive income of the subsidiary or the related company. 37

Dividend Dividend Interest received received Management received by up to the after the Management fees the date of date of fees received Company the the received up after the or that it is statement statement to the date of date of the entitled to of of the statement statement of receive Income (Loss) Income (Loss)2 financial financial of financial financial from any before tax after tax position1 position position position company Netivei 431 Operations and 55606 85,53 - - - - - Control Ltd. Netivim 45603 55564 - - - - - Mishtalvim Ltd. Advanced Solutions – 55343 85163 - - - - - Road Systems Ltd.. Africa Israel (Financing) 05 05 - - - - - 1985 Ltd.

* Includes subsidiaries and investee companies owned by this company.

Africa Israel Investments Ltd. December 31, 2016

Appendix E – Company Directors as of the Date of the Periodic Report

Is a family Employee of the member of an Company, a interested subsidiary or a party in the Member of related Company, to Is considered BOD company or Education and employment in the last 5 the best a director committees; interested party years, including professions and subjects, knowledge of with independent or in the Service as institutions, academic degrees or the Company accounting Name, ID, date of Address for service outside Company; director began professional certificates, other companies and the other and financial birth, citizenship of court documents director position on in which he/she serves as a director directors expertise Lev Leviev, I.D. No. 10 Compton Ave., No COB of the January 29, 1997 High school and religious education. No No 014224497. London, UK Company, COB Chairman of the Company’s Board of July 30, 1956 of AFI Directors, President and owner of the British resident Development Leviev – LLD Diamonds Ltd. Group, Plc, a subsidiary President of the Union of Jewish of the Company Communities in the Commonwealth of Nations; President and owner – private businesses. Acting COB of AFI Development Avinadav 44 Tagor, Tel Aviv No Deputy COB of August 26, 2005 Education: Bachelor’s degree in Accounting No Yes Grinspon the Company, and Business Administration from the I.D. No. 028988715 CEO of College for Administration; CPA. February 15, 1972. Memorand Employment over the past 5 years: CEO of Israeli Management Memorand Management (1998) Ltd. (1998) Ltd, Other companies in which he serves as a which is an director: interested party COB in: Africa Israel Properties Ltd. in the Company companies, and Africa Israel Investment House Ltd., Director in: Africa Israel Residences Ltd., Africa Israel Hotels Ltd., Africa Israel (Financing) 1985 Ltd., Africa Israel Trade and Agencies Ltd., Africa Israel International Holdings Ltd., Africa Israel International Investments (1997) Ltd.,

Is a family Employee of the member of an Company, a interested subsidiary or a party in the Member of related Company, to Is considered BOD company or Education and employment in the last 5 the best a director committees; interested party years, including professions and subjects, knowledge of with independent or in the Service as institutions, academic degrees or the Company accounting Name, ID, date of Address for service outside Company; director began professional certificates, other companies and the other and financial birth, citizenship of court documents director position on in which he/she serves as a director directors expertise Africa Israel Industries Ltd., Bat Savyon, Danya Cebus Ltd., Derech Betucha Bakvishim Ltd., Derech Tzafon Operations and Management Ltd., Derech Eretz Highways Management Corporation Ltd., Israel Canada Rapid Road Management Ltd., Road Systems Section 18 Ltd., Netivei Hacarmel Systems and Operations Ltd., Netivei 431 Operation and Control Ltd., Advanced Solutions – Road Systems Ltd., Memorand Ltd., Memorand Management (1998) Ltd., Memorand Investment (2000) Ltd., Memorand Financial Management Ltd., Leviev Group Project Management Ltd., Memorand Holdings and Investments Ltd., Tenderprice Ltd., L.L. Financial Holdings Ltd., Kfar Zvi Sitrin Ltd., Sodiam International Ltd., Al Properties and Developments (USA) Corp., Al Holdings (USA) Corp., AI Florida Holdings Inc., and AI Nevada Holdings Inc. Naomi Bilitz Ben Habosem 10, Audit No August 20, 2015 Education: BA in Social Studies, No No Ami. 016391500. Mevaseret Zion Committee, International Relations, awarded by Hebrew June 10, 1960. Financial University of Jerusalem. Israeli Statements Employment in the last 5 years: COE of Committee, Nativ – Communications Bureau, the Prime Remuneration Minister’s Office. Committee Additional corporations in which she served as a director: None

Is a family Employee of the member of an Company, a interested subsidiary or a party in the Member of related Company, to Is considered BOD company or Education and employment in the last 5 the best a director committees; interested party years, including professions and subjects, knowledge of with independent or in the Service as institutions, academic degrees or the Company accounting Name, ID, date of Address for service outside Company; director began professional certificates, other companies and the other and financial birth, citizenship of court documents director position on in which he/she serves as a director directors expertise Shmuel Shkedi. 19/3 Yordei Hasira, Audit No March 27, 2005 Education: B.A. in Economics from Hebrew No No I.D. No. 01093913 Jerusalem. Committee University in Jerusalem November 16, 1948. Employment over the past 5 years: Deputy Israeli Mayor of Jerusalem, in charge of the Office of Finance in Jerusalem Municipality. Other companies in which he serves as a director: None Shlomo Borochov 58 Be’eri Street, Remuneration No December 30, Education: M.A. Chemistry, Samarkand No Yes I.D. No. 016741431 Rehovot Committee, 2010 National University August 9, 1941 independent Employment over the past 5 years: business Israeli director consultant, businessman, member of the executives of the Israel-Russia and Israel- Ukraine Chambers of Commerce. Other companies in which he serves as a director: None. Eitan Raf 1 King Saul Blvd., Balance Sheet No March 17, 2003 Education: Academic: B.A. Social Sciences No Yes I.D. No. 001587161 Tel Aviv Committee and Economics, MBA, Hebrew University August 31, 1941 of Jerusalem Israeli Employment over the past 5 years: senior business consultant at Morgan Stanley (2010 to present). Formerly COB of Bank Leumi Le’Israel Ltd (1995-2010) Other companies in which he serves as a director: Alon USA Partners LP, Tamares Telecom Ltd., VeriFone Holdings Ltd., Shalom Meir Tower Ltd.

Is a family Employee of the member of an Company, a interested subsidiary or a party in the Member of related Company, to Is considered BOD company or Education and employment in the last 5 the best a director committees; interested party years, including professions and subjects, knowledge of with independent or in the Service as institutions, academic degrees or the Company accounting Name, ID, date of Address for service outside Company; director began professional certificates, other companies and the other and financial birth, citizenship of court documents director position on in which he/she serves as a director directors expertise Eran Renato Yarak 15 Maskin Street, Balance Sheet No October 26, 2016 Education: LLM, Bar Ilan University; BA No Yes ID No. 054270293 Petah Tikva Committee, in Economics and Accounting, Bar Ilan October 11, 1956 Remuneration University. Graduate of the government Israeli Committee, company directors course under the Audit auspices of the Government Companies Committee Authority, and graduate of the CISA course. Employment over the past 5 years: Executive partner in the accounting firm of Yarak Yehezkelov and Associates, since 1985. Member of the finance committee in the Zionist Executive Committee institutions, member of the Institute of Certified Public Accountants in Israel, member of the New Organization of Internal Auditors, member of the Center for Arbitration and Mediation of the ICPAI. Other companies in which he serves as a director: External director and chair of the audit committee of S.R. Accord Ltd; director and chair of the finance committee of the board of the National Insurance Institute.