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B.S.D Crown Ltd (LSE:BSD) ("BSD" or "the Company") Willi-Food Investments Ltd. H1 Unaudited Reports Tel Aviv, Israel, 14 August, 2014 Willi-Food Investments Ltd. H1 Unaudited Reports The Company announces that Willi-Food Investments Ltd. (TASE: WLFD) publishedits unaudited condensed consolidated financial statements as of June 30, 2014today, 14 August, 2014. These results can be accessed (in Hebrew) on the TASEwebsite (www.tase.co.il) through ticker code WLFD and an English translationis copied below in full. The Company owns shares representing approximately 62.21 per cent. ofWilli-Food Investments Ltd.'s fully diluted issued share capital. Further information about the Company For more information about the Company, visit www.emblaze.com. Enquiries: Eyal Merdler, CFO: eyal.merdler@emblaze.com WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2014 UNAUDITED INDEX Page Auditors' Review Report 2 Condensed Consolidated Financial Statements: (Unaudited) Condensed Consolidated Statements of Financial Position 3 - 4 Condensed Consolidated Statements of Operations 5 - 6 Condensed Consolidated Statements of Comprehensive Income 7 Condensed Consolidated Statements of Changes in Equity 8 - 12 Condensed Consolidated Statements of Cash Flows 13-14 Notes to Condensed Consolidated Financial Statements 15 - 20 Auditors' Review Report to the Shareholders of Willi-Food Investments Ltd. Introduction We have reviewed the accompanying financial information ofWilli-Food Investments Ltd., the Company and subsidiaries (hereafter: "theGroup") which includes the condensed consolidated statement of financialposition as of June 30, 2014 and the condensed consolidated statements ofoperations, comprehensive income, changes in equity and cash flows for theperiods of six months and three months then ended. The Board of Directors andmanagement are responsible for the preparation and presentation of thisinterim financial information in accordance with IAS 34 "Financial Reportingfor Interim Periods", and they are also responsible for the preparation ofthis interim financial information in accordance with Chapter D of theSecurities Regulations (Periodic and Immediate Reports), 1970. Ourresponsibility is to express a conclusion on this interim financialinformation based on our review. Scope of Review We conducted our review in accordance with Review Standard 1 of the Instituteof Certified Public Accountants in Israel "Review of Interim FinancialInformation Performed by the Independent Auditor of the Entity". A review ofinterim financial information consists of making inquiries, primarily ofpersons responsible for financial and accounting matters, and applyinganalytical and other review procedures. A review is substantially less inscope than an audit conducted in accordance with auditing standards generallyaccepted in Israel and consequently does not enable us to obtain assurancethat we would become aware of all significant matters that might be identifiedin an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us tobelieve that the abovementioned financial information is not prepared, in allmaterial respects, in accordance with IAS 34. In addition to what is stated to the preceding paragraph, based on our review,nothing has come to our attention that causes us to believe that theabovementioned financial information does not comply, in all materialrespects, with the disclosure requirements of Chapter D of the SecuritiesRegulations (Periodic and Immediate Reports), 1970. Brightman Almagor Zohar & Co. Certified Public Accountants Tel Aviv, Israel, August 12, 2014 WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, December 31, 2 0 1 4 2 0 1 3 2 0 1 3 NIS in thousands Unaudited Audited ASSETS Current assetsCash and cash equivalents 76,469 87,943 45,895Financial assets at fair value through operations 215,126 191,610 176,976Trade receivables 96,140 82,650 82,963Other current assets 6,129 3,317 3,582Investment in a fund designated at fair valuethrough operations 15,180 6,296 9,349Inventories 38,911 43,877 54,036Current tax assets 191 - -Loan designated at fair value through operations - - 65,300 Total current assets 448,146 415,693 438,101 Non current assets Fixed assetsCost 69,800 66,001 67,323Less -accumulated depreciation 26,887 23,120 25,811 42,913 42,881 41,512 Long term receivablesOther receivables and long-term prepaid expenses 52 476 51Goodwill 1,223 1,223 1,223 Total non-current assets 44,188 44,580 42,786 Total assets 492,334 460,273 480,887 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, December 31, 2 0 1 4 2 0 1 3 2 0 1 3 NIS in thousands Unaudited Audited LIABILITIES AND EQUITY Current liabilitiesBank credit 240 226 254Current maturities of debentures 12,819 12,819 12,819Trade payables 15,007 21,869 20,353Other current liabilities 6,122 5,532 5,332Current tax liability - 2,214 440Liability for employee benefits 2,136 1,893 1,879 Total current liabilities 36,324 44,553 41,077 Non-current liabilities:Obligations with respect to employee benefits 614 570 644Debentures 12,726 25,434 12,681Deferred tax liabilities 1,189 283 926 Total non-current liabilities 14,529 26,287 14,251 EquityShare capital 14,894 14,201 14,894Share premium 131,512 114,081 131,512Payments on account of options 1,585 - 1,585Capital reserve from transactions with rights notproviding control 7,150 7,150 7,150Capital reserve from translation differences - 377 424Capital reserve from remeasurement of net definedbenefit obligation (18) 7 -Retained earnings 131,620 111,404 121,572Cost of Company's shares held by subsidiary (2,121) (2,121) (2,121) Total attributable to Company shareholders 284,622 245,099 275,016Rights not providing control 156,859 144,334 150,543 Total equity 441,481 389,433 425,559 Total liabilities and equity 492,334 460,273 480,887 August 12, 2014Date of approval Yosef Williger Gil Hochboim Raviv Segalof the financial Chairman of the statements Board Chief Executive Chief Financial Officer OfficerThe accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS six months period three months period year ended ended June 30 ended June 30 December 31 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 3 2 0 1 3 (Unaudited) (Unaudited) (Audited) NIS thousands NIS thousands NIS thousands Revenues from sales 174,526 175,350 79,412 84,655 336,726Cost of sales 132,443 132,018 58,783 62,755 252,825 Gross profit 42,083 43,332 20,629 21,900 83,901 Selling and marketing expenses 20,518 16,616 10,332 9,015 35,373General and administrativeexpenses 10,010 9,651 4,733 4,762 19,927Other income, net (147) (34) - (34) (54) 30,381 26,233 15,065 13,743 55,246 Operating income 11,702 17,099 5,564 8,157 28,655 Financing income 9,597 18,091 507 6,963 38,825Financing expenses 1,264 2,161 774 506 3,318 Financing income (expenses), net 8,333 15,930 (267) 6,457 35,507 Income before taxes on income 20,035 33,029 5,297 14,614 64,162 Taxes on income 4,898 5,230 1,239 2,560 10,017 Net income for the period 15,137 27,799 4,058 12,054 54,145 Attributed to:Rights not providing control 5,089 6,381 2,035 3,057 12,559Company shareholders 10,048 21,418 2,023 8,997 41,586 Net income for the period 15,137 27,799 4,058 12,054 54,145 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS six months period three months period year ended ended June 30 ended June 30 December 31 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 3 2 0 1 3 (Unaudited) (Unaudited) (Audited) NIS thousands NIS thousands NIS thousands Earnings per share attributed toCompany shareholders Basic earnings per share: Basic diluted earnings per share 0.76 1.72 0.15 0.72 3.32 Diluted earnings per share 0.76 1.72 0.15 0.72 3.32 Quantity of shares serving tocalculate:Basic earnings per share 13,173,708 12,447,226 13,173,708 12,461,817 12,527,720 Diluted earnings per share 13,177,042 12,460,171 13,177,042 12,473,343 12,535,833 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME six months period three months period year ended ended June 30 ended June 30 December 31 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 3 2 0 1 3 (Unaudited) (Unaudited) (Audited) NIS thousands NIS thousands NIS thousands Net income for the period 15,137 27,799 4,058 12,054 54,145 Other comprehensive income: Capital reserve from translationdifferences that may be (were)subsequently classified toprofit or loss (127) 66 (115) 16 144Capital reserve fromremeasurement of net definedbenefit obligation (33) 11 (8) 11 - Other comprehensive income(loss) for the period (160) 77 (123) 27 144 Total comprehensive income forthe period 14,977 27,876 3,935 12,081 54,289 Total comprehensive income forthe period attributed to:Company shareholders 9,606 21,463 1,603 9,014 41,671Rights not providing control 5,371 6,413 2,332 3,067 12,618 14,977 27,876 3,935 12,081 54,289 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Six months ended June 30, 2014 (unaudited) Capital Capital reserve reserve from from Payments transactions Capital measurement Cost of Total on with rights reserve of net Company's attributed Rights account not from defined shares to not Share Share of providing translation benefit Retained held by Company providing capital premium options control differences obligation earnings subsidiary shareholders control Total NIS in thousands Balanceas ofJanuary1, 2014 14,894 131,512 1,585 7,150 424 - 121,572 (2,121) 275,016 150,543 425,559 Movementin thereportingperiod(unaudited):Netincomefor theperiod - - - - - - 10,048 - 10,048 5,089 15,137 Remeasurementof netdefinedbenefitobligation - - - - - (18) - - (18) (15) (33)Capitalreservefromtranslationdifferences - - - - (424) - - - (424) 297 (127) Totalcompre-hensiveincomefor theperiod - - - - (424) (18) 10,048 - 9,606 5,371 14,977 Benefitrelating toallotmentof options toemployees - - - - - - - - - 945 945 Balanceas ofJune 30,2014 14,894 131,512 1,585 7,150 - (18) 131,620 (2,121) 284,622 156,859 441,481 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Six months ended June 30, 2013 (unaudited) Capital Capital reserve from reserve from Cost of transactions Capital measurement Company's with rights reserve of net shares Total Rights not from defined held attributed not Share Share providing translation benefit Retained by to Company providing capital premium control differences obligation earnings subsidiary shareholders control Total NIS in thousands Balance as ofJanuary 1,2013 14,146 113,585 7,294 339 - 96,890 (2,121) 230,133 138,653 368,786 Movement inthe reportingperiod(unaudited): Net incomefor theperiod - - - - - 21,418 - 21,418 6,381 27,799 Capitalreserve fromtranslationdifferences - - - 38 - - - 38 28 66 Remeasurementof netdefinedbenefitobligation - - - - 7 - - 7 4 11 - - - 38 7 21,418 - 21,463 6,413 27,876 Totalcomprehensiveincome forthe period Purchase ofshares fromrights notprovidingcontrol ofsubsidiary - - (144) - - - - (144) (732) (876) Exercise ofoptions intoshares 55 493 - - - - - 548 - 548 Dividendspaid by theCompany - - - - - (6,904) - (6,904) - (6,904) Benefitrelating toallotment ofoptions toemployees - 3 - - - - - 3 - 3 Balanceas ofJune 30, 14,201 114,081 7,150 377 7 111,404 (2,121) 245,099 144,334 389,4332013 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Three months ended June 30, 2014 (unaudited) Capital Capital reserve reserve from from Payments transactions Capital measurement Cost of Total on with rights reserve of net Company's attributed Rights account not from defined shares to not Share Share of providing translation benefit Retained held by Company providing capital premium options control differences obligation earnings subsidiary shareholders control Total NIS in thousands Balanceas ofApril 1,2014 14,894 31,512 1,585 7,150 417 (15) 129,597 (2,121) 283,019 154,238 437,257 Movementin thereportingperiod(unaudited): Netincomefor theperiod - - - - - - 2,023 - 2,023 2,035 4,058 Remeasurementof netdefinedbenefitobligation - - - - - (3) - - (3) (5) (8) Capitalreservefromtranslationdifferences - - - - (417) - - - (417) 302 (115) Totalcomprehensiveincomefor theperiod - - - - (417) (3) 2,023 - 1,603 2,332 3,935 Benefitrelating toallotmentof optionstoemployees - - - - - - - - - 289 289 Balanceas ofJune 30,2014 14,894 131,512 1,585 7,150 - (18) 131,620 (2,121) 284,622 156,859 441,481 The accompanying notes to the condensed consolidated financial statements are an integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Three months ended June 30, 2013 (unaudited) Capital Capital reserve from reserve from transactions Capital measurement Cost of with rights reserve of net Company's Total Rights not from defined shares attributed not Share Share providing translation benefit Retained held by to Company providing capital premium control differences obligation earnings subsidiary shareholders control Total NIS in thousands Balanceas ofApril 1, 14,174 113,843 7,438 367 - 102,411 (2,121) 236,112 141,269 377,3812013 Movement inthe reportingperiod(unaudited): Net incomefor theperiod - - - - - 8,997 - 8,997 3,057 12,054 Capitalreserve fromtranslationdifferences - - - 10 - - - 10 6 16 Remeasurementof netdefinedbenefitobligation - - - - 7 - - 7 4 11 Totalcomprehensiveincome forthe period - - - 10 7 8,997 - 9,014 3,067 12,081 Purchase ofshares fromrights notprovidingcontrol ofsubsidiary - - (288) - - - - (288) - (288) Exercise ofoptions intoshares 27 238 - - - - - 265 - 265 Dividendspaid by theCompany - - - - - (4) - (4) - (4) Benefitrelating toallotment ofoptions toemployees - - - - - - - - (2) (2) Balanceas ofJune 30, 14,201 114,081 7,150 377 7 111,404 (2,121) 245,099 144,334 389,4332013 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Year ended December 31, 2013 Capital Capital reserve from reserve from transactions Capital measurement Cost of with rights reserve of net Company's Total Rights not from defined shares attributed not Share Share providing translation benefit Retained held by to Company providing capital premium control differences obligation earnings subsidiary shareholders control Total NIS in thousands Balance as ofJanuary 1,2013 14,146 113,585 7,294 - 339 96,890 (2,121) 230,133 138,653 368,786 Movement inthe reportingyear: Net incomefor the year - - - - - 41,586 - 41,586 12,559 54,145Capitalreserve fromtranslationdifferences - - - - 85 - - 85 59 144 Totalcomprehensiveincome forthe year - - - - 85 41,586 - 41,671 12,618 54,289 Purchase ofshares fromrights notprovidingcontrol ofsubsidiary - - (144) - - - - (144) (732) (876) Issue ofshares in theCompany'sprivateplacement(lessissuanceexpenses ofNIS 400thousand) 690 17,400 - - - - - 18,090 - 18,090 Issuance ofoptions - - - 1,585 - - - 1,585 - 1,585 Exercise ofoptions intoshares 58 522 - - - - - 580 - 580 Benefitrelating toallotment ofoptions toemployees - 5 - - - - - 5 4 9 Dividendspaid - - - - - (16,904) - (16,904) - (16,904) Balance as ofDecember 31,2013 14,894 131,512 7,150 1,585 424 121,572 (2,121) 275,016 150,543 425,559 The accompanying notes are an integral part of the condensed consolidatedfinancial statements. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS three months six months period period year ended ended June 30 ended June 30 December 31 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 3 2 0 1 3 (Unaudited) (Unaudited) (Audited) NIS thousands NIS thousands NIS thousands Cash flows from operatingactivities:Income from continuingoperationsNet income for the period 15,137 27,799 4,058 12,054 54,145Adjustments necessary to presentcash flows from operatingactivities (Appendix A) (10,397) (21,546) 17,142 (210) (50,544)Net cash from operatingactivities 4,740 6,253 21,200 11,844 3,601 Cash flows from (to) investingactivitiesInvestment in other long-termreceivables - (445) - - (445)Purchase of fixed assets (4,006) (5,560) (2,177) (1,165) (6,080)Proceeds from sale of fixedassets 973 29 226 29 29Sale (purchase) of financialassets at fair value throughoperations, net (31,587) 72,559 (10,173) 20,591 103,836Investment in (redemption of)loan designated at fair valuethrough operations 65,400 - - - (65,000)Investment in fund designated atfair value through operations (4,932) (5,000) - (5,000) (6,865)Net cash from (to) investingactivities 25,848 61,583 (12,124) 14,455 25,475 Cash flows to financingactivities:Redemption of debenturesconvertible debentures - - - - (13,020)Bank overdraft, net (14) (9,963) (2,644) (24) (9,935)Repayment of on-call loans - (23,230) - - (23,230)Dividends paid - (6,904) - (6,904) (16,904)Purchase of shares from rightsnot providing control ofsubsidiary - (878) - - (878)Proceeds from private placementof shares and options - - - - 19,675Proceeds from exercise ofCompany's options - 551 - 502 580Net cash to financing activities (14) (40,424) (2,644) (6,426) (43,712) Increase (decrease) in cash andcash equivalents 30,574 27,412 6,432 19,873 (14,636) Cash and cashequivalents-beginning of period 45,895 60,531 70,037 68,070 60,531 Cash and cash equivalents- endof period 76,469 87,943 76,469 87,943 45,895 The accompanying notes to the condensed consolidated financial statements arean integral part of them. WILLI-FOOD INVESTMENTS LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS six months period three months period year ended ended June 30 ended June 30 December 31 2 0 1 4 2 0 1 4 2 0 1 4 2 0 1 3 2 0 1 3 (Unaudited) (Unaudited) (Audited) NIS thousands NIS thousands NIS thousandsAppendix A - Adjustmentsnecessary to present cash flowsfrom operating activities Income and expenses notinvolving cash flows:Depreciation and amortization 1,820 2,207 911 1,176 4,541Revaluation of debentures 45 88 23 57 355Financing income from capitalreserve from translationdifferences classified tooperations (424) - (424) - -Revaluation of loan designatedat fair value through operations (100) - - - (300)Capital gain from sale of fixedassets (188) (29) - (29) (29)Increase (decrease) in deferredtaxes, net 263 303 (540) 528 946Increase (decrease) in value offinancial assets at fair valuethrough operations (6,563) (15,752) 732 (6,135) (32,395)Expenses relating to employees'options 945 - 470 - -Increase in value of investmentin fund designated at fair valuethrough operations (899) (219) - (200) (1,407) (5,101) (13,402) 1,172 (4,603) (28,289) :Changes in asset and liabilityitemsDecrease (increase) ininventories 15,125 5,454 14,615 (3) (4,705)Decrease (increase) in tradereceivables (13,177) (11,276) 9,461 1,336 (11,589)Decrease (increase)in othercurrent assets (2,547) 3,607 (2,644) (1,137) 3,406Decrease in long-termreceivables (1) 18 (22) 18 12Increase (decrease) in tradepayables (5,346) (5,575) (6,816) 3,427 (7,091)Increase (decrease) in othercurrent liabilities 650 (372) 1,376 752 (2,288) (5,296) (8,144) 15,970 4,393 (22,255) (10,397) (21,546) 17,142 (210) (50,544) Additional information: Interest payments 534 983 251 451 1,840 Tax payments 4,667 4,466 2,220 2,301 8,731 The accompanying notes to the condensed consolidated financial statements arean integral part of them. NOTE 1:- GENERAL A. Willi-Food Investments Ltd. (hereafter-"the Company") was incorporated inIsrael. Its offices are located at the northern industrial zone of Yavne,Israel and it is mainly engaged in the import, marketing and distribution offood products through a subsidiary, G. Willi-Food International Ltd.(hereafter-"Willi-Food"). The Company's securities are listed for trading on the TASE. B. These financial statements should be read in conjunction with the Company'sannual financial statements as of December 31, 2013 and for the year thenended and accompanying notes. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES A. Basis of preparation of the financial statements: The condensed consolidated financial statements (hereafter-"interim financialstatements") of the Group have been prepared in accordance with IAS 34,"Financial Reporting for Interim Periods". In the preparation of these interim financial statements, the Groupimplemented accounting policies, presentation principles and computationmethods that are consistent with those followed in the preparation of thefinancial statements as of December 31, 2013 and for the year then ended,except for changes in accounting policies resulting from the application ofnew standards, amendments to standards and interpretations that becameeffective as of the date of the financial statements, as detailed in Note 3below. B. The condensed consolidated financial statements have been prepared inaccordance with Chapter D of the Securities Regulations (Periodic andImmediate Reports), 1970. C. Taxes on income in the interim financial statements: Income tax expenses (income) for the periods presented include the amount ofcurrent taxes as well as the amount of the change in deferred tax balances,except where deferred taxes arise from transactions that are recognizeddirectly in equity and business combination transactions. Current tax expenses (income) for interim periods are accrued using theaverage annual effective income tax rate. For purposes of the computation ofthe effective income tax rate, tax losses for which no deferred tax assetshave been recognized and which are expected to reduce the tax liability in thereporting year, have been deducted. D. Exchange rates and linkage basis: (1) Balances in or linked to foreign currency are included in thefinancial statements at the representative exchange rates published by theBank of Israel in effect at the end of the reporting period. (2) Balances linked to the CPI are presented according to the lastknown CPI at the end of the reporting period or according to the actual CPIfor the last month of the reporting period, according to the terms of thetransaction. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) D. Exchange rates and linkage basis: (3) Below are data on the exchange rate of the dollar and the CPI: Representative exchange rate Israeli CPI *) of dollar Known Actual NIS 1 per $ 1 PointsDate of financialstatements: June 30, 2014 3.44 113.85 114.18June 30, 2013 3.62 112.73 113.63December 31, 2013 3.47 114.07 114.18 Rates of change: % % %Six month periodended:June 30, 2014 (0.86) (0.20) -June 30, 2013 (2.95) 0.71 1.32 Three month periodended:June 30, 2014 (1.43) 0.19 0.79June 30, 2013 (0.82) 0.70 1.29 Year ended December 31 (*) CPI on the basis of the average index for 2008. NOTE 3:- NEW FINANCIAL REPORTING STANDARDS AND INTERPRETATIONS ISSUED Amendment to IAS 32, "Financial Instruments: Presentation" (offsettingfinancial assets and financial liabilities): The Amendment determines that in order to meet the condition for offsetting afinancial asset and financial liability, the right of offset cannot becontingent on a future event and it must be enforceable in the normal courseof business, and in the event of bankruptcy, insolvency or credit default.Also, the net settlement condition may occur even if the settlement actuallyis made on a gross basis, but in a manner not leaving significant credit orliquidity risk, when the amounts due and amounts payable are part of a singlesettlement process. The Amendment is effective retrospectively for annualreporting periods beginning on or after January 1, 2014. IAS 36, "Impairment of Assets": The Amendment clarifies the effectiveness and extent of disclosing assets(including goodwill) or cash generating units as to which an impairment losshas been recognized (or cancelled) and it also determines that the disclosurerequirements applicable when the recoverable amount of these assets or cashgenerating units is determined on the basis of fair value will besubstantially similar to the disclosure requirements for fair valuemeasurements under IFRS 13, "Fair Value Measurement". The Amendment applies retrospectively for annual reporting periods beginningon January 1, 2014. NOTE 3:- NEW FINANCIAL REPORTING STANDARDS AND INTERPRETATIONS ISSUED (Cont.) IFRS 15 "Revenues with Respect to Contracts with Customers" The new standard determines a comprehensive and uniform mechanism forarranging the accounting treatment of revenues derived from contracts withcustomers. The standard revokes IAS 18 "Revenues" and IAS 11 "ConstructionContracts" and related interpretations. The core principle of the standard isthat the recognition of revenue should reflect the transfer of the merchandiseor the services to customers in an amount representative of the economicbenefits expected to be received by the entity in consideration for them. Forthis purpose, the standard stipulates that the recognition of revenue willtake place when the entity transfers the merchandise and/or the servicesitemized in the contract to the customer in a manner that the customerachieves control over that merchandise or services. The standard determines a model for implementing this principle consisting offive stages: 1. Identification of the contract (or contracts) with the customer. 2. Identification of the performance obligation in the contact. 3. Determination of the transaction price. 4. Allocation of the transaction price to the performance obligation. 5. Recognition of revenue when the entity completes the performanceobligation. Implementation of the model is conditional upon the specific facts andcircumstances of the contact and, at times, necessitates the introduction ofbroad judgment. In addition, the standard stipulates extensive disclosurerequirements with respect to the contracts with customers, material estimates,which served at the time of implementation of the provisions of the standard,as well as changes to them, in order to allow the users of the financialstatements to understand the substance, the quantity, the timing and thereliability of the revenues and of the cash flows derived from the contractswith the customers. The standard will become binding compulsorily for annual reporting periodscommencing on January 1, 2017 or thereafter. Early adoption is permitted. Ingeneral, the standard will be implemented retroactively, but entities will bepermitted to elect certain adjustments in the framework of the transitionalprovisions of the standard for purposes of applying it to previous reportingperiods. IFRS 15 "Revenues with Respect to Contracts with Customers" (cont.) At this early stage, the management of the Company is unable to estimate theeffect of implementation of the standard on its financial position andoperating results. The Company's management will examine the effect ofapplying the provisions of the standard on the contracts with its customersand will evaluate whether these provisions will have a material effect on thetiming and manner of recognition of revenue from these contracts that couldaffect the Company's financial statements. NOTE 4:- FINANCIAL INSTRUMENTS Financial instruments that are not measured at fair value: Except as detailed in the following table, the Group believes that the bookvalue of financial assets and liabilities that are presented at amortized costin the financial statements is approximately identical to their fair value: Financial liabilities: Carrying amount Fair value (*) December June 30, 31, June 30, December 31, 2014 2013 2013 2014 2013 2013 NIS in thousands Unaudited Unaudited Debentures 25,623 50,898 25,500 26,077 39,237 26,253(*) Less balances held by Willi-Food. Financial assets at fair value: Below are details of the Group's financial assets and liabilities that aremeasured in the Company's statement of financial position at fair value,according to their measurement levels: June 30, 2014 (unaudited) Level 1 Level 2 Level 3 Total NIS in thousands Marketable securities 210,678 4,448 - 215,126Investment in fund - 15,180 - 15,180Total 210,678 19,628 - 230,306 June 30, 2013 (unaudited) Level 1 Level 2 Level 3 Total NIS in thousands Marketable securities 191,610 - - 191,610Investment in fund - 6,296 - 6,296Total 191,610 6,296 - 197,906 December 31, 2013 Level 1 Level 2 Level 3 Total NIS in thousands Marketable securities andderivatives 172,519 4,457 - 176,976Investment in fund - 9,349 - 9,349Loan at fair value throughoperations - - 65,300 65,300Total 172,519 13,806 65,300 251,625 NOTE 5:- SIGNIFICANT EVENTS DURING THE REPORTING PERIOD A. On November 27, 2013, Willi-Food entered into a loan agreement with Newco(hereafter-"the loan agreement") according to which Willi-Food will give Newcoa loan of NIS 65 million (hereafter-"the loan") that will be depositedaccording to the trust agreement between Willi-Food and the Newco trustee(hereafter-"the investors trustee") and that may be fully converted intoshares of IDB Holdings Company Ltd. (hereafter-"IDB Holdings") or into sharesof IDB Development Company Ltd. (hereafter-"the conversion shares"), to beheld by Newco in proportion to the loan amount and the amount injected byNewco under the arrangement plan between IDB Holdings and its creditors(hereafter-"the arrangement plan") which was submitted to the court pursuantto Section 350 to the Companies Law, 1999 (hereafter-"the Companies Law"). According to the loan agreement, this is a "bullet" loan (principal, linkagedifferences and interest) and will be extended for the earlier of a period ofone year from the date of deposit or for a period of six months from the dateof completion as determined by the arrangement plan (hereafter-"the originalrepayment date"). The loan will be linked to the CPI published on November 15,2013 and bear interest at the annual rate of 5%, calculated on a compoundedbasis from the date of deposit to the relevant date of repayment. According tothe terms of the loan agreement, if the court does not approve the arrangementplan or if the conditional terms for the arrangement plan to become effectiveare not fulfilled, the loan will be repaid and refunded to Willi-Food,including linkage differences and interest, before the original repaymentdate. In view of the December 17, 2013 decision of the Tel-Aviv District Courtregarding the approval of the arrangement for the creditors of IDB Holdings(hereafter-"the Court's decision"), Willi-Food contacted the investors'trustee and demanded transfer to it of the loan principal pursuant to thetrust agreement and the Court's decision. On December 31, 2013, at the request of Willi-Food, the investors' trusteecontacted the official in the context of the trust agreement, Adv. HagaiUllman ("Ullman"), notifying him that, on December 29, 2013, it received ademand from Willi-Food that the investors' trustee immediately transfer toWilli-Food the loan principal of NIS 65 million which Willi-Food had madeavailable to Newco and which had been deposited in trust with the investors'trustee. In this demand, Ullman was requested to give written approval to theinvestors trustee and to the Trust Company of Bank Leumi Le'Israel Ltd. (or,alternatively, not to give the approval) to act to release the above amountthat is in trust, in light of the provisions of section 4.2.2 of the trustagreement and the Court's decision, and that December 31, 2013 is the deferreddate for presenting the examination report by the observer appointed by Court. On January 12, 2014, the loan principal was refunded to Willi-Food. On January14, 2014, Willi-Food received the interest on the loan. B. On March 2, 2014, the controlling shareholders, Messrs. Joseph Williger andZvi Williger, informed the Company that they and private companies under theircontrol signed an agreement with Emblaze Ltd. (hereafter-"Emblaze") in thecontext of which, subject to predetermined conditions, Emblaze is to purchase7,722,297 Ordinary shares of the Company of NIS 1 par value each, representingabout 58.04% of the Company's issued and outstanding share capital and about58.62% of its voting rights (about 55.16% of the equity interests in theCompany and about 55.69% of the voting rights in the Company on a fullydiluted basis) in consideration of approximately NIS 268 million, reflectingapproximately NIS 34.71 per Company share (hereafter-"the agreement"). Theagreement is subject to the receipt of the approval of the Anti-TrustCommissioner. On March 26, 2014, the Anti-Trust Commissioner granted his approval to thetransaction to sell control. NOTE 5:- SIGNIFICANT EVENTS DURING THE REPORTING PERIOD (Cont.) B (cont.) On April 6, 2014, Emblaze published a special tender offer according toSection 328 of the Companies Law-1999, for the acquisition of 658,685 Ordinaryshares of the Company of NIS 1 par value each, representing approximately 5%of the voting rights in the Company and about 4.95% of the issued and paid upshare capital of the Company, all in accordance with the terms of thespecification published by Emblaze in the framework of the transaction for thesale of control (hereafter- "special tender offer"). The determining date for the sale of control was May 4, 2014. Commencing onthat date, Emblaze is the controlling shareholder of the Company by force ofits holding of 8,203,371 Ordinary shares of the Company which, as of thatdate, constitute about 61.65% of the Company's issued and paid up sharecapital and about 62.27% of its voting rights. NOTE 6:- SEGMENT REPORTING A. General: Since January 1, 2009, the Group applies IFRS 8, "Operating Segments"(hereafter-"IFRS 8"). According to the provisions of IFRS 8, operatingsegments are identified on the basis of internal reports about components ofthe Group that are regularly reviewed by the Group's chief operating decisionmaker for the purpose of allocating resources and assessing performance of theoperating segments. In 2014, the Group's operating segment under IFRS 8 was the import segmentonly. The import segment earns its revenues from importing, producing andmarketing food products to retail chains, supermarkets, wholesalers, theinstitutional market, etc. B. Revenues from major customers: Revenues from a major customer that contributed 10% or more to the Company'stotal revenues for the six and three months ended June 30, 2014 amounted toapproximately NIS 31,020 thousand and NIS 12,033 thousand, respectively(2013-NIS 21,990 thousand and NIS 9,534 thousand). C. Revenues from major groups of products: Six months ended Year ended Six months ended June 30, 2014 June 30,2013 December 31, 2013 NIS in NIS in NIS in thousands % thousands % thousands % Cannedvegetables 30,434 17 30,288 17 56,543 21 Dairy anddairysubstituteproducts 41,877 24 40,261 23 70,317 26 Dried fruit,nuts and beans 28,504 16 20,507 12 (*) (*) (*) Less than 10%.