Alon Holdings Blue Square -
Israel Ltd.

  Alon Holdings Blue Square- Israel Ltd. ("Alon Holdings") operates in three reporting segments. In its supermarket segment, Alon Holdings is the second largest food retailer in Israel. In its non-food segment, Alon Holdings, through its 100%-held subsidiary, Bee Group Retail Ltd., operates specialty outlets selling housewares and home textiles, toys, baby products and more. In addition, Alon Holdings holds approximately 78.38% of TASE-traded Dor Alon, one of Israel’s four largest petrol companies. In its real estate segment, Alon Holdings, through its TASE-traded 78.39% subsidiary, Blue Square Real Estate Ltd., owns, leases and develops yield generating commercial properties.

    Food Retail - Alon Holdings owns and operates 209 supermarkets (as of June 30, 2011) under five brand names.
  • Mega stores, usually large stores, are located primarily outside residential areas and offer a wide selection of food, "near-food" and "non-food" items.
  • Mega in the City stores, usually smaller than Mega stores, are located primarily in local neighborhoods and city centers, and combine discount prices with convenience for neighborhood shoppers.
  • Shefa Shuk stores are low-priced stores focused on Israel's growing ultra-orthodox population.
  • Mega Bool stores are hard discount stores designed to provide customers with name brand quality at everyday affordable prices.
  • Eden Teva Market stores focus on organic, natural and health food products.
  Alon Holdings also operates the Mega by Internet Web site which allows customers to place orders via the Internet 24 hours a day.
  Company supermarkets offer a wide range of food and beverages as well as non-food items, such as houseware, toys, home, small electrical appliances, computers and accessories, entertainment products, and near-food products, such as health and beauty aids, cosmetics and baby and hygiene products.
  Alon Holdings operates a joint loyalty plan with Dor Alon, offering "You" credit cards (Diners and Mastercard), granting participants exclusive benefits. In July 2011, Alon Holdings and Dor Alon  purchase 49% of Diners held by Cal which among others will strengthen the "You" club.
  In 2008, Alon Holdings launched "Mega,” a private label brand that accounts for 11% of food retail sales.
  Real Estate - Through BSRE, the company is engaged in income-generating real estate properties mainly commercial centers, logistics centers and offices as well as land for long-term yield. It is also involved in the development of the "Wholesale Market" residency project.
  Non-Food Retail - Alon Holdings, through its wholly-owned subsidiary, Bee Group, holds and operates large retail chains in Israel selling housewares and home textiles, toys, leisure and baby and young children items. As of June 30, 2011, there were 263 such stores under the brand names Naaman, Vardinon, Sheshet, Kfar Hasha'ashuim, Rav-Kat, Dr. Baby and All for a Dollar. 
  Energy  - On October 3, 2010, Alon Holdings acquired 78.38% of TASE-traded Dor Alon Energy in Israel (1988) Ltd., one of the four largest petrol companies and a leader in the field of convenience stores. Dor Alon operates a chain of 193 petrol stations and 191 convenience stores in different formats in Israel.

  In March 2011, Alon Cellular Ltd. (JV- 70.1% held), signed an MOU with Partner Communications Ltd. to launch cellular services in an MVNO model, enabling Alon Cellular to offer cellular services and become a major player in Israel's communication market. It plans to commence operations by the end of the year.

	Three Months Ended June 30		Six Months Ended June 30
Income Statement Data ($m)	2011	2010	2011	2010
Net Revenues	939.5	517.9	1,820.1	1,054.0
Gross Profit	220.2	150.2	433.8	300.6
Gross Margins  %	23%	29%	24%	29%
Operating Income	34.6	19.8	61.8	41.3
Financial Income, Net	-4.5	-12.4	-16.4	-16.6
Pretax Income	30.1	7.4	45.8	24.6
Net Income**	19.0	5.6	27.8	14.0
Diluted Earnings Per Share ($)	0.28	0.12	0.41	0.27
*attributable to equity holders Data translated at the NIS/$ exchange rate of 6/30/11

	Year Ended December 31
Income Statement Data ($m)	2010	2009	2008
Net Revenues	2,490.1	2,152.0	2,175.4
Gross Profit	676.8	602.7	603.2
Gross Margins %	27%	28%	28%
Operating Income	73.0	68.4	77.6
Financial Income, Net	-43.9	-33.0	-30.9
Pretax Income	29.0	35.4	51.6
Net Income**	14.0	22.6	30.0
Diluted Earnings Per Share ($)	0.28	0.52	0.48
*attributable to equity holders Data translated at the NIS/$ exchange rate of 6/30/11

Balance Sheet Data ($m)	6/30/11	12/31/10
Cash & Equivalents	36.6	36.9
Current Assets	1,006.0	929.1
Total Assets	2,693.0	2,566.4
Current Liabilities	1,009.6	912.9
Total Equity*	375.9	351.3
*attributable to equity holders Data translated at the NIS/$ exchange rate of 3/31/11

 

Key Financial Ratios	6/30/11	12/31/10
Current Ratio	1.0x	1.0x
L-T Debt/Equity	218.4%	233.9%

 

Business Summary	1-6/11
	Revenues
Supermarkets	55%
Non-food retail	4%
Energy	41%

 

Dividend Policy

The company does not have a set dividend policy.

Main Shareholders (August 28, 2011)
Alon Israel Oil Company Ltd.	77.26%
Menora Mivtachim Pensions Ltd.	5.23%