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Exhibit 99.1

Ellomay Capital Ltd.

and its Subsidiaries

Condensed Consolidated Interim Financial Statements

As at June 30, 2022

(Unaudited)

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Financial Statements

Contents

	Page

Condensed consolidated interim statements of financial position	F-2

Condensed consolidated interim statements of profit or loss and other comprehensive income or loss	F-3

Condensed consolidated interim statements of changes in equity	F-4 - F-7

Condensed consolidated interim statements of cash flows	F-8

Notes to the condensed consolidated interim financial statements	F-9

F - 1

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Financial Position

		June 30,			December 31,			June 30,
		2022			2021			2022
		(Unaudited)			(Audited)			(Unaudited)
								Convenience Translation
	Note	€ in thousands						into US$in thousands**
Assets
Current assets
Cash and cash equivalents			59,951			41,229			62,287
Marketable securities	4		1,761			1,946			1,830
Short term deposits	4		-			28,410			-
Restricted cash	4		4,280			1,000			4,447
Receivable from concession project			1,786			1,784			1,856
Trade and other receivables	5		10,744			9,487			11,163
			78,522			83,856			81,583
Non-current assets
Investment in equity accounted investee	6		32,410			34,029			33,673
Advances on account of investments			1,554			1,554			1,615
Receivable from concession project			25,991			26,909			27,004
Fixed assets	8		352,680			*340,897			366,424
Right-of-use asset			23,360			23,367			24,270
Intangible asset			4,418			4,762			4,590
Restricted cash and deposits	4		20,379			15,630			21,174
Deferred tax			23,723			12,952			24,648
Long term receivables	5		8,581			5,388			8,915
Derivatives	7		2,718			2,635			2,824
			495,814			468,123			515,137
Total assets			574,336			551,979			596,720
Liabilities and Equity
Current liabilities
Current maturities of long-term bank loans			12,306			126,180			12,786
Current maturities of other long-term loans			10,000			16,401			10,390
Current maturities of debentures			19,785			19,806			20,556
Trade payables			2,059			2,904			2,138
Other payables			20,120			20,806			20,904
Current maturities of derivatives			38,996			14,783			40,516
Current maturities of lease liabilities			675			4,329			701
			103,941			205,209			107,991
Non-current liabilities
Long-term lease liabilities			16,206			15,800			16,838
Long-term bank loans			217,845			39,093			226,335
Other long-term loans			25,754			37,221			26,758
Debentures			93,973			117,493			97,635
Deferred tax			6,409			*9,044			6,659
Other long-term liabilities			3,324			3,905			3,454
Derivatives	7		24,198			10,107			25,141
			387,709			232,663			402,820
Total liabilities			491,650			437,872			510,811

Equity
Share capital			25,605			25,605			26,603
Share premium			85,943			85,883			89,292
Treasury shares			(1,736	)		(1,736	)		(1,804	)
Transaction reserve with non-controlling Interests			5,697			5,697			5,919
Reserves			(11,763	)		7,288			(12,221	)
Accumulated deficit			(8,121	)		*(6,899	)		(8,437	)
Total equity attributed to shareholders of the Company			95,625			115,838			99,352
Non-Controlling Interest			(12,939	)		*(1,731	)		(13,443	)
Total equity			82,686			114,107			85,909
Total liabilities and equity			574,336			551,979			596,720

* Reclassified, please see Note 2C.

* Convenience translation into US$ (exchange rate as at June 30, 2022: EUR 1 = US$1.039)

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 2

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Profit or Lost and Other Comprehensive Income or Loss

	For the six months ended June 30,						For the year ended December			For the six months ended
	2022			2021			31, 2021			June 30, 2022
	(Unaudited)			(Unaudited)			(Audited)			(Unaudited)
										Convenience
										Translation
	€ in thousands (except per share amounts)									into US$**

Revenues		29,196			*20,393			*45,721			30,334
Operating expenses		(13,132	)		*(7,572	)		*(17,590	)		(13,644	)
Depreciation and amortization expenses		(7,978	)		*(7,076	)		*(15,116	)		(8,289	)
Gross profit		8,086			5,745			13,015			8,401

Project development costs		(1,554	)		(1,119	)		(2,508	)		(1,615	)
General and administrative expenses		(3,297	)		(2,572	)		(5,661	)		(3,425	)
Share of profits (losses) of equity accounted investee		(602	)		(772	)		117			(625	)
Operating profit		2,633			1,282			4,963			2,736

Financing income		4,439			1,716			2,931			4,612
Financing income (expenses) in connection with derivatives and warrants, net		338			(109	)		(841	)		351
Financing expenses		(6,958	)		(7,745	)		(28,974	)		(7,230	)
Financing expenses, net		(2,181	)		(6,138	)		(26,884	)		(2,267	)
Profit (loss) before taxes on income		452			(4,856	)		(21,921	)		469
Tax benefit (Taxes on income)		(1,087	)		*(306	)		*2,281			(1,129	)
Loss for the period		(635	)		(5,162	)		(19,640	)		(660	)
Profit (loss) attributable to:
Owners of the Company		(1,222	)		*(5,252	)		*(15,090	)		(1,270	)
Non-controlling interests		587			*90			*(4,550	)		610
Loss for the period		(635	)		(5,162	)		(19,640	)		(660	)
Other comprehensive loss items that after initial recognition
in comprehensive income (loss) were or will be transferred
to profit or loss:
Foreign currency translation differences for foreign
operations		(3,683	)		1,684			12,284			(3,826	)
Effective portion of change in fair value of cash flow hedges		(31,942	)		(5,202	)		(13,429	)		(33,186	)
Net change in fair value of cash flow hedges transferred to profit
or loss		821			(1,225	)		(3,353	)		853
Total other comprehensive loss		(34,804	)		(4,743	)		(4,498	)		(36,159	)

Total other comprehensive loss attributable to:
Owners of the Company		(19,051	)		(1,764	)		3,124			(19,793	)
Non-controlling interests		(15,753	)		(2,979	)		(7,622	)		(16,366	)
Total other comprehensive loss		(34,804	)		(4,743	)		(4,498	)		(36,159	)

Total comprehensive loss for the period		(35,439	)		(9,905	)		(24,138	)		(36,819	)

Total comprehensive loss for the period attributable to:
Owners of the Company		(20,273	)		(7,016	)		(11,966	)		(21,063	)
Non-controlling interests		(15,166	)		(2,889	)		(12,172	)		(15,756	)
Total comprehensive loss for the period		(35,439	)		(9,905	)		(24,138	)		(36,819	)

Basic net loss per share		(0.10	)		*(0.41	)		*(1.18	)		(0.10	)
Diluted net loss per share		(0.10	)		*(0.41	)		*(1.18	)		(0.10	)

* Reclassified, please see Note 2C.

* Convenience translation into US$ (exchange rate as at June 30, 2022: EUR 1 = US$1.039)

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 3

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Changes in Equity

																						Non- controlling			Total
					Attributable to shareholders of the Company																	Interests			Equity
	Share capital		Share premium		Accumulated deficit			Treasury shares			Translation reserve from foreign operations			Hedging Reserve			Interests Transaction reserve with non-controlling Interests		Total
	€ in thousands
For the six months ended June 30, 2022 (unaudited):
Balance as at January 1, 2022		25,605		85,883		(6,899	)		(1,736	)		15,365			(8,077	)		5,697		115,838			(1,731	)		114,107
Profit (loss) for the period		-		-		(1,222	)		-			-			-			-		(1,222	)		587			(635	)
Other comprehensive loss for the period		-		-		-			-			(3,466	)		(15,585	)		-		(19,051	)		(15,753	)		(34,804	)
Total comprehensive loss for the period		-		-		(1,222	)		-			(3,466	)		(15,585	)		-		(20,273	)		(15,166	)		(35,439	)
Transactions with owners of the Company, recognized directly in equity:
Issuance of Capital note to non-controlling interest		-		-		-			-			-			-			-		-			3,958			3,958
Share-based payments		-		60		-			-			-			-			-		60			-			60
Balance as at June 30, 2022		25,605		85,943		(8,121	)		(1,736	)		11,899			(23,662	)		5,697		95,625			(12,939	)		82,686

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 4

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Changes in Equity (cont’d)

																						Non- controlling			Total
					Attributable to shareholders of the Company																	Interests			Equity
	Share capital		Share premium		Retained earnings (Accumulated deficit)			Treasury shares			Translation reserve from foreign operations		Hedging Reserve			Interests Transaction reserve with non-controlling Interests			Total
	€ in thousands
For the six months ended June 30, 2021 (unaudited):
Balance as at January 1, 2021		25,102		82,401		8,191			(1,736	)		3,823		341			6,106			124,228			798			125,026
Profit (loss) for the period		-		-		*(5,252	)		-			-		-			-			(5,252	)		*90			(5,162	)
Other comprehensive income (loss) for the period		-		-		-			-			1,636		(3,400	)		-			(1,764	)		(2,979	)		(4,743	)
Total comprehensive income (loss) for the period		-		-		(5,252	)		-			1,636		(3,400	)		-			(7,016	)		(2,889	)		(9,905	)
Transactions with owners of the Company, recognized directly in equity:
Issuance of Capital note to non-controlling interest		-		-		-			-			-		-			-			-			8,682			8,682
Acquisition of shares in subsidiaries from non-controlling interests		-		-		-			-			-		-			(961	)		(961	)		961			-
Warrants exercise		454		3,348		-			-			-		-			-			3,802			-			3,802
Options exercise		22		-		-			-			-		-			-			22			-			22
Share-based payments		-		13		-			-			-		-			-			13			-			13
Balance as at June 30, 2021		25,578		85,762		2,939			(1,736	)		5,459		(3,059	)		5,145			120,088			7,552			127,640

* Reclassified, please see Note 2C.

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 5

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Changes in Equity (cont’d)

																						Non-
																						controlling			Total
	Attributable to shareholders of the Company																					Interests			Equity
					Retained earnings (Accumulated						Translation Reserve from foreign					Transaction reserve with non-controlling
	Share		Share		Retained earnings (Accumulated			Treasury			Translation Reserve from foreign		Hedging			Transaction reserve with non-controlling
	capital		premium		deficit)			shares			operations		Reserve			Interests			Total
	€ in thousands
For the year ended December 31, 2021 (audited):
Balance as at January 1, 2021		25,102		82,401		8,191			(1,736	)		3,823		341			6,106			124,228			798			125,026
Profit (loss) for the year		-		-		*(15,090	)		-			-		-			-			(15,090	)		*(4,550	)		(19,640	)
Other comprehensive income (loss) for the year		-		-		-			-			11,542		(8,418	)		-			3,124			(7,622	)		(4,498	)
Total comprehensive income (loss) for the year		-		-		(15,090	)		-			11,542		(8,418	)		-			(11,966	)		(12,172	)		(24,138	)
Transactions with owners of the Company, recognized directly in equity:
Issuance of Capital note to non-controlling interest		-		-		-			-			-		-			-			-			8,682			8,682
Acquisition of shares in subsidiaries from non-controlling interests		-		-		-			-			-		-			(409	)		(409	)		961			552
Warrants exercise		454		3,419		-			-			-		-			-			3,873			-			3,873
Options exercise		49		-		-			-			-		-			-			49			-			49
Share-based payments		-		63		-			-			-		-			-			63			-			63

Balance as at December 31, 2021		25,605		85,883		(6,899	)		(1,736	)		15,365		(8,077	)		5,697			115,838			(1,731	)		114,107

* Reclassified, please see Note 2C.

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 6

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Changes in Equity (cont’d)

																						Non- controlling			Total
					Attributable to shareholders of the Company																	Interests			Equity
	Share capital		Share premium		Accumulated deficit			Treasury shares			Translation reserve from foreign operations			Hedging Reserve			Interests Transaction reserve with non-controlling Interests		Total
	Convenience translation into US$*
For the six months ended June 30, 2022 (unaudited):
Balance as at January 1, 2022		26,603		89,230		(7,167	)		(1,804	)		15,964			(8,392	)		5,919		120,353			(1,799	)		118,554
Profit (loss) for the period		-		-		(1,270	)		-			-			-			-		(1,270	)		610			(660	)
Other comprehensive loss for the period		-		-		-			-			(3,601	)		(16,192	)		-		(19,793	)		(16,366	)		(36,159	)
Total comprehensive loss for the period		-		-		(1,270	)		-			(3,601	)		(16,192	)		-		(21,063	)		(15,756	)		(36,819	)
Transactions with owners of the Company, recognized directly in equity:
Issuance of Capital note to non-controlling interest		-		-		-			-			-			-			-		-			4,112			4,112
Share-based payments		-		62		-			-			-			-			-		62			-			62
Balance as at June 30, 2022		26,603		89,292		(8,437	)		(1,804	)		12,363			(24,584	)		5,919		99,352			(13,443	)		85,909

* Convenience translation into US$ (exchange rate as at June 30, 2022: EUR 1 = US$1.039)

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 7

Ellomay Capital Ltd. and its Subsidiaries

Condensed Consolidated Unaudited Interim Statements of Cash Flows

	For the six months ended June 30,						For the year ended December			For the six months ended
	2022			2021			31, 2021			June 30, 2022
	(Unaudited)			(Unaudited)			(Audited)			(Unaudited)
										Convenience
										Translation
	€ in thousands									into US$*
Cash flows from operating activities
Loss for the period		(635	)		*(5,162	)		*(19,640	)		(660	)
Adjustments for:
Financing expenses, net		2,181			6,138			26,884			2,267
Profit from settlement of derivatives contract		-			(407	)		(407	)		-
Depreciation and amortization		7,978			*7,076			*15,116			8,289
Share-based payment transactions		60			13			63			62
Share of losses (profits) of equity accounted investees		602			772			(117	)		625
Payment of interest on loan by an equity accounted investee		-			859			859			-
Change in trade receivables and other receivables		(2,579	)		(2,124	)		(1,883	)		(2,680	)
Change in other assets		53			(782	)		(545	)		55
Change in receivables from concessions project		(550	)		757			1,580			(571	)
Change in trade payables		(801	)		(941	)		154			(832	)
Change in other payables		7,878			3,715			2,380			8,185
Income tax expense (tax benefit)		1,087			*306			*(2,281	)		1,129
Income taxes paid		(3,255	)		(15	)		(94	)		(3,382	)
Interest received		922			921			1,844			958
Interest paid		(4,924	)		(3,857	)		(7,801	)		(5,116	)
Net cash provided by operating activities		8,017			7,269			16,112			8,329
Cash flows from investing activities
Acquisition of fixed assets		(22,274	)		(64,665	)		(83,682	)		(23,142	)
Repayment of loan by an equity accounted investee		149			1,400			1,400			155
Loan to an equity accounted investee		-			(244	)		(335	)		-
Advances on account of investments		-			(8	)		-			-
Settlement of derivatives contract		(528	)		(252	)		(976	)		(549	)
Investment in restricted cash, net		(8,241	)		(185	)		(5,990	)		(8,562	)
Proceeds from (investment in) short term deposit		27,645			8,533			(18,599	)		28,722
Proceeds from (investment in) marketable securities		-			1,785			(112	)		-
Net cash used in investing activities		(3,249	)		(53,636	)		(108,294	)		(3,376	)
Cash flows from financing activities
Sale of shares in subsidiaries to non-controlling interests		-			1,400			1,400			-
Proceeds from options		-			22			49			-
Cost associated with long term loans		(8,958	)		(197	)		(2,796	)		(9,307	)
Payment of principal of lease liabilities		(4,000	)		-			(4,803	)		(4,156	)
Proceeds from long term loans		196,189			32,476			32,947			203,835
Repayment of long-term loans		(143,095	)		(3,390	)		(18,905	)		(148,672	)
Repayment of Debentures		(19,764	)		(30,730	)		(30,730	)		(20,534	)
Repayment of SWAP instrument associated with long term loans		(3,290	)		-			-			(3,418	)
Proceeds from issue of convertible debentures		-			15,571			15,571			-
Proceeds from issuance of Debentures, net		-			25,465			57,717			-
Issuance / exercise of warrants		-			3,675			3,746			-
Net cash provided by financing activities		17,082			44,292			54,196			17,748

Effect of exchange rate fluctuations on cash and cash equivalents		(3,128	)		2,489			12,370			(3,250	)
Increase (decrease) in cash and cash equivalents		18,722			414			(25,616	)		19,451
Cash and cash equivalents at the beginning of the period		41,229			66,845			66,845			42,836
Cash and cash equivalents at the end of the period		59,951			67,259			41,229			62,287

* Reclassified, please see Note 2C.

* Convenience translation into US$ (exchange rate as at June 30, 2022: EUR 1 = US$1.039)

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

F - 8

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 1 - General

Ellomay Capital Ltd. (hereinafter - the “Company”), is an Israeli company involved in the production of renewable and clean energy. As of June 30, 2022, the Company owns seven photovoltaic plants (each, a “PV Plant” and, together, the “PV Plants”) that are operating and connected to their respective national grids as follows: (i) five photovoltaic plants in Spain with an aggregate installed capacity of approximately 35.9 MW, (ii) 51% of Talasol, which owns a photovoltaic plant with installed capacity of 300MW in the municipality of Talaván, Cáceres, Spain (hereinafter – the “Talasol Project”) and (iii) one photovoltaic plant in Israel with an aggregate installed capacity of approximately 9 MW. In addition, the Company indirectly owns: (i) 9.375% of Dorad Energy Ltd. (hereinafter - “Dorad”), (ii) Ellomay Solar Italy One SRL and Ellomay Solar Italy Two SRL, that are constructing photovoltaic plants with installed capacity of 14.8 MW and 4.95 MW, respectively, in the municipality of Latina, Borgo Bainsizza, Lazio Region, Italy, (iii) Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million (with a license to produce 7.5 million) Nm3 per year, respectively, and (iv) 83.333% of Ellomay Pumped Storage (2014) Ltd. (hereinafter – “Ellomay PS”), which is constructing a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel (hereinafter – the “Manara PSP”).

The ordinary shares of the Company are listed on the NYSE American and on the Tel Aviv Stock Exchange under the trading symbol “ELLO”. The address of the Company’s registered office is 18 Rothschild Blvd., Tel Aviv, Israel.

Effects of the spreading of the coronavirus and of the military conflict between Russia and Ukraine

Following the outbreak of the coronavirus (Covid-19) in China in December 2019, and the spreading of Covid-19 to many other countries since the beginning of 2020, creating the current pandemic situation, there was a decrease in economic activity in many areas around the world, including Israel, Spain and Italy. The spread of the virus has led, inter alia, to a disruption in the supply chain, a decrease in global transportation, restrictions on travel and work that were announced by the State of Israel and other countries around the world and a decrease in the value of financial assets and commodities on the markets in Israel and the world. In recent months, Spain, Italy, and Israel have experienced a resurgence in the number of Covid-19 cases, causing the local governments to renew restrictions and implement additional measures in order to attempt to curb the spread of the pandemic. Although the Company’s operations have not thus far been materially adversely affected by the restrictions imposed by local governments and authorities in the countries in which the Company operates, in the event the restrictions continue, or new restrictions are imposed, the operations of the Company, including the projects under construction and development, may be adversely affected. Also, as a result of the Covid-19 pandemic, the electricity prices in the European markets declined during the beginning of the pandemic due to the decrease in demand, resulting in a slight decrease in the Company’s revenues in Spain. Despite a decrease in the number and severity of Covid-19 cases in recent months compared to the first year of the pandemic, the impact and implications of the pandemic, including the delays in supply chains and the shortage of components, causing delays, and increases in costs and expenses, are still impacting the markets and industries worldwide and may also indirectly affect the operations of the Company, for example through changes in the prices of oil resulting in a decrease in the electricity prices, and through reduction in demand for electricity, delays in construction of projects due to curtailment of work, limited availability of components required in order to operate or construct new projects, regulatory changes by countries affected by the virus, including changes in subsidies, collection delays, delays in obtaining permits, limited availability or changes in terms of financing for future projects, limited availability of corporate financing and lower returns on potential future investments. As a result, the Company's business and operating results could be negatively affected.

F - 9

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 1 - General (cont’d)

The military conflict between Russia and Ukraine impacted European and other markets and caused delays in supply and shortages in supply, including natural gas supply. Since the commencement of the military conflict between Russia and Ukraine and the gas shortage caused by such conflict, the electricity prices in the European markets have significantly increased and are currently higher that were in effect prior to the pandemic. The war in Ukraine also caused shortages in certain raw materials and an increase in delivery prices, impacting our biogas operations in the Netherlands. The supply of raw materials has since been renewed. In connection with the increases in electricity prices that commenced prior to the military conflict between Russia and the Ukraine but were enhanced significantly since the commencement of the conflict, the Spanish government implemented RDL 17/2021 that establishes the reduction, initially until March 31, 2022, of returns on the electricity generating activity of Spanish production facilities that do not emit greenhouse gases accomplished through payments of a portion of the revenues by the production facilities to the Spanish government. RDL 17/2021 was thereafter extended and applied until June 30, 2022. The continued military conflict between Russian and the Ukraine may adversely impact our operations in the future, including through the implementation of new regulation in the countries in which we operate, changes in the financial markets and availability of funds in Europe, shortages in raw materials and continued increase in delivery prices.

The extent to which the Covid-19 pandemic and the military conflict between Russian and Ukraine impacts the business of the Company will depend on future developments, which are highly uncertain and cannot be predicted.

Increase in Annual Interest Rate of the Company’s Series C Debentures

On June 6, 2022, the holders of the Company’s Series C Debentures approved an amendment to the Series C Deed of Trust, which provides for certain revisions to the financial covenants and for the increase of the annual interest rate payable on the principal of the Series C Debentures by 0.25% from 3.3% to 3.55%, commencing on June 6, 2022.

Note 2 - Basis of Preparation and Significant Accounting Policies

The accounting policies applied by the Company in these condensed consolidated unaudited interim financial statements are the same as those applied by the Company in its annual financial statements for 2021.

A. Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements. They should be read in conjunction with the Company’s financial statements as at and for the year ended December 31, 2021 (hereinafter – “the annual financial statements”).

These condensed consolidated interim financial statements were authorized for issue on September 22, 2022.

F - 10

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 2 - Basis of Preparation and Significant Accounting Policies (cont’d)

B. Use of estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to exercise judgment when making assessments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The significant judgments made by management in applying the Company’s accounting policies and the principal assumptions used in the estimation of uncertainty were the same as those that applied to the annual financial statements.

C. Initial application of new standards, amendments to standards and interpretations

Amendment to IAS 16, Property, Plant and Equipment (“the Amendment”) –

The Amendment annuls the requirement by which in the calculation of costs directly attributable to fixed assets, the net proceeds from selling certain items that were produced while the Company tested the functioning of the asset should be deducted (such as samples that were produced when testing the equipment). Instead, such proceeds shall be recognized in profit or loss and the cost of the sold items will be measured according to the measurement requirements of IAS 2, Inventories.

The Amendment is applied retrospectively, including an amendment of comparative data, only with respect to fixed asset items that have been brought to the location and condition required for them to operate in the manner intended by management subsequent to the earliest reporting period presented at the date of initial application of the Amendment.

The cumulative effect of the Amendment was included in the opening balance of retained earnings for the earliest reporting period presented.

As a result of applying the Amendment the Company recognized an increase in the balance of fixed assets against a corresponding increase in retained earnings and the deferred tax in 2021. Please see the tables below:

	December 31, 2021
	€ in thousands
	As previously reported			Application effect IAS16- Amendment			As reported in these financial statements
	Audited			Unaudited			Unaudited

Fixed assets		340,065			832			340,897
Deferred tax		8,836			208			9,044
Accumulated deficit		(7,217	)		318			(6,899	)
Non-Controlling Interest		(2,037	)		306			(1,731	)

Revenues		44,783			938			45,721
Operating expenses		(17,524	)		(66	)		(17,590	)
Depreciation and amortization expenses		(15,076	)		(40	)		(15,116	)
Tax benefit (Taxes on income)		2,489			(208	)		2,281
Profit (loss) attributable to:
Owners of the Company		(15,408	)		318			(15,090	)
Non-controlling interests		(4,856	)		306			(4,550	)

Basic loss per share		(1.20	)		0.02			(1.18	)
Diluted loss per share		(1.20	)		0.02			(1.18	)

F - 11

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 2 - Basis of Preparation and Significant Accounting Policies (cont’d)

C. Initial application of new standards, amendments to standards and interpretations (cont’d)

Amendment to IAS 16, Property, Plant and Equipment (“the Amendment”) (cont’d) –

	June 30, 2021
	€ in thousands
	As previously reported			Application effect IAS16- Amendment			As reported in these financial statements
	Unaudited

Fixed assets		312,983			852			313,835
Deferred tax		8,124			213			8,337
Accumulated deficit		2,613			326			2,939
Non-Controlling Interest		7,239			313			7,552

Revenues		19,455			938			20,393
Operating expenses		(7,506	)		(66	)		(7,572	)
Depreciation and amortization expenses		(7,056	)		(20	)		(7,076	)
Tax benefit (Taxes on income)		(93	)		(213	)		(306	)
Profit (loss) attributable to:
Owners of the Company		(5,578	)		326			(5,252	)
Non-controlling interests		(223	)		313			90

Basic loss per share		(0.44	)		0.03			(0.41	)
Diluted loss per share		(0.44	)		0.03			(0.41	)

Amendment to IAS 37, Provisions, Contingent Liabilities and Contingent Assets – Costs of Fulfilling a Contract (“the Amendment”) –

According to the Amendment, when assessing whether a contract is onerous, the costs of fulfilling a contract that should be taken into consideration are costs that relate directly to the contract, which include the following:

-	Incremental costs; and

-	An allocation of other costs that relate directly to fulfilling a contract (such as depreciation expenses for fixed assets used in fulfilling that contract and other contracts).

The Amendment is applied retrospectively as from January 1, 2022, in respect of contracts where the entity has not yet fulfilled all its obligations.

Application of the Amendment did not have a material effect on the financial statements.

F - 12

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 3 - Seasonality

Solar power production has a seasonal cycle due to its dependency on the direct and indirect sunlight and the effect the amount of sunlight has on the output of energy produced. Thus, low radiation levels during the winter months decrease power production.

Note 4 - Restricted Cash, Deposits and Marketable Securities

	June 30,		December 31,
	2022		2021
	€ in thousands
	Unaudited		Audited

Marketable securities ⁽¹⁾		1,761		1,946

Short-term restricted cash ⁽²⁾		4,280		1,000

Short-term deposits		-		28,410

Long-term restricted non-interest-bearing bank deposits ⁽²⁾		20,379		15,630

During 2021, the Company invested in a traded Corporate Bond with a coupon rate of 3.255%.

Deposits used to secure obligations towards the Israeli Electricity Authority for the license for the pumped-storage project in the Manara Cliff in Israel in 2021 and to secure obligations under loan agreements.

Note 5 - Trade and Other Receivables

	June 30,		December 31,
	2022		2021
	€ in thousands
	Unaudited		Audited

Current Assets:
Trade and other receivables:
Government authorities		1,524		1,602
Income receivable		3,366		3,794
Interest receivable		14		3
Current tax		-		76
Trade receivable		3,287		598
Inventory		547		640
Derivatives (Note 7)		55		639
Prepaid expenses and other		1,951		2,135
		10,744		9,487
Non-current Assets:
Long term receivables
Loans to others		554		568
Annual rent deposits		48		33
Prepaid expenses associated with long term loans ⁽¹⁾		7,927		4,787
Other		52		-
		8,581		5,388

(1)

Prepaid commission expenses paid in connection with the Talasol Project’s project finance obtained from financing entities as at December 31, 2021 and prepaid commission expenses paid in connection with the Manara PSP project finance obtained from financing entities as at June 30, 2022.

F - 13

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 6 - Investee Companies and Other Investments

Information about investee companies and other investments

A. U. Dori Energy Infrastructures Ltd. (“Dori Energy”)-

The Company, through its wholly owned subsidiary, Ellomay Clean Energy Ltd. (“Ellomay Energy”), entered into an Investment Agreement (the “Dori Investment Agreement”) with Amos Luzon Entrepreneurship and Energy Group Ltd. (the “Luzon Group”), and Dori Energy, with respect to an investment in Dori Energy. Dori Energy holds 18.75% of the share capital of Dorad, which owns an approximate 860 MW bi-fuel operated power plant in the vicinity of Ashkelon, Israel (the “Dorad Power Plant”). Dorad holds production and supply licenses, both expiring in May 2034 and commenced commercial operation in May 2014.

Dorad provided guarantees in favor of the Israeli Electricity Authority, the Israel Electric Corporation and Israel Natural Gas Lines Ltd. These guarantees were provided through Dorad’s shareholders at their proportionate holdings, as required by the financing agreements executed by Dorad. As of June 30, 2022, total performance guarantees provided by Dorad amounted to approximately NIS 147,000 thousand (approximately €40,425 thousand). The Company's indirect share of guarantees that Dorad provided through its shareholders is approximately NIS 13,780 thousand (approximately €3,790 thousand).

Dorad and its shareholders are involved in several legal proceedings as follows:

Petition to Approve a Derivative Claim filed by Dori Energy and Ran Fridrich and Third Party Notices

In connection with the description of the petition to approve a derivative claim filed by Dori Energy and Hemi Raphael (replaced by Ran Fridrich) and related third party notices included in Note 6.A to the annual financial statements, the parties filed several motions in connection with the discovery process, the evidentiary hearings and expert opinions. Additional evidentiary hearings were held in March-May 2021. On May 19, 2022, summaries were submitted and during June and July 2022 several hearings were held to complete the oral arguments. The arbitrator informed the parties that he will issue an arbitration award in the first quarter of 2023.

The Company estimates (after consulting with legal counsel), that at this stage it is not yet possible to assess the outcome of the proceeding. With respect to the third party notices filed in connection with the derivative claim against Dori Energy and other parties, the Company estimates (after consulting with legal counsel) that if the main (Derivative) claim is dismissed then the third party notices will be redundant, whereas if the main claim is accepted, it is more likely than not that the third party notices shall be rejected, as they are based on arguments similar to those raised by the defendants in their statements against of defense filed against the main claim.

Petition to Approve a Derivative Claim filed by Edelcom

Please see above under “Petition to Approve a Derivative Claim filed by Dori Energy” for updates in connection with the petition to approve a derivative claim filed by Edelcom Ltd., one of the shareholders of Dorad (“Edelcom”), included in Note 6.A to the annual financial statements as this proceeding is also conducted in the framework of the above-mentioned arbitration. As noted above, the arbitration award in expected to be issued during the first quarter of 2023. The Company estimates (after consulting with legal counsel), that the chances of the petition to be approved are lower than the chances that it will be rejected.

F - 14

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 6 - Investee Companies and Other Investments (cont’d)

A. U. Dori Energy Infrastructures Ltd. (“Dori Energy”) (cont’d)-

Opening Motion filed by Zorlu

In connection with the description of the opening motion filed by Zorlu Enerji Elektrik Uretim A.S., one of the shareholders of Dorad (“Zorlu”) included in Note 6.A to the annual financial statements, as per which Zorlu asked the court to instruct Dorad to convene a shareholders meeting and to include a discussion and a vote on the planning and construction of an additional power plant adjacent to the existing power plant (the “Dorad 2 Project”), on the agenda of this meeting, in June 2021, a ruling was handed in which the court ordered Dorad to convene a special shareholders meeting, on whose agenda will be the planning and construction of the “Dorad 2 Project”. Following the said ruling, Dorad’s board resolved that Dorad's management will continue to examine the feasibility of the “Dorad 2 Project” and its implications and bring its decisions to the board’s approval. Dorad’s board of directors further resolved that to the extent it will approve the Dorad 2 Project, the decision will be presented to Dorad’s shareholders for approval. On July 27, 2021, a shareholders meeting of Dorad was held. In accordance with the court ruling, the agenda for such meeting included two resolutions (1) the planning and construction of the Dorad 2 Project – a resolution that Dori Energy and Eilat-Ashkelon Infrastructure Services Ltd. (“EAIS”), which holds 37.5% of Dorad, supported and Edelcom and Zorlu rejected; and (2) approval of the aforementioned resolution of the Dorad board of directors – a resolution which Dori Energy and EAIS supported and with respect to which Edelcom and Zorlu abstained. Following such shareholders meeting, correspondence was exchanged between Dorad and Edelcom concerning, among other issues, the implications of the aforementioned resolutions. Dorad estimates (after consulting with legal counsel) that by convening the aforementioned shareholders meeting Dorad complied with the court ruling and therefore the opening motion process ended. To the Company’s knowledge, the Dorad 2 Project is currently under initial internal examination by Dorad. On July 13, 2020, Dorad submitted to the National Infrastructure Committee, or NIC, plans for public objections, on January 11, 2021, the NIC decided to postpone the final decision and on December 27, 2021, the NIC decided to conditionally raise the construction of another power plant to a government decision. There can be no assurance as to if, when and under what terms it will be advanced or promoted by Dorad.

B. Manara Pumped Storage Project –

On December 31, 2020, Ellomay PS, the Company’s 83.333% owned subsidiary, received the tariff approval for the project from the Israeli Electricity Authority that regulates the tariffs and formulas for purchasing capacity and energy from a pumped storage producer connected to the transmission grid for a period of 20 years beginning on the date of receipt of the permanent production license, upon construction completion and commercial operation. The tariff approval became effective following the financial closing of the Manara PSP in February 2021.

On February 11, 2021, the Manara PSP project finance reached financial closing. The Manara PSP project finance is provided by a consortium of Israeli banks and institutional investors, arranged and led by Mizrahi-Tefahot Bank Ltd. as further included in Note 6 and Note 11 to the annual financial statements. On January 31, 2022, Ellomay PS completed all the preliminary conditions for the first withdrawal under the Manara PSP project finance and executed the first withdrawal in the amount of approximately NIS 75,000 thousand (approximately €21,000 thousand), This amount was drawn from the Senior Secured Tranche and the Subordinated Secured B Tranche pro-rata. The amount drawn from the Senior Secured Tranche was approximately NIS 69,133 thousand (approximately €19,390 thousand) at an interest rate of 2.75% during the construction period and 1.9% as from the date of commercial operation. The amount drawn from the Subordinated Secured B Tranche was approximately NIS 5,867 (approximately €1,610 thousand) at an interest rate of 4.45% during the construction period and 4% as from the date of commercial operation.

F - 15

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 6 - Investee Companies and Other Investments (cont’d)

B. Manara Pumped Storage Project (cont’d) –

Prior to the first withdrawal, the company requested a waiver in connection with the financial covenants required for the first withdrawal, so that instead of maintaining a projected ratio of minimum debt service cover (PROJECTED ADSCR) and LLCR as defined in the Finance Agreement of 1.35:1.00 for the Senior Secured Tranche, the projected ratio would be 1.34:1.00. In addition, considering the Subordinated Secured B Tranche, the company requested that instead of maintaining a projected minimum debt service coverage ratio and LLCR as defined under the Finance Agreement of 1.23:1.00, the ratio would be 1.24:1.00. The Lenders agreed to the request.

As part of the Manara PSP Project Finance, as of June 30, 2022, Ellomay PS paid upfront, agency and commitment fees in the accumulated amount of approximately NIS 30,600 thousand (approximately €8,415), which were included as other long-term receivables.

C. Ellomay Solar 28MW Photovoltaic Plant in Spain –

In June 2022, the photovoltaic plant constructed by Ellomay Solar S.L., a wholly-owned subsidiary of the Company (“Ellomay Solar”), in the municipality of Talaván, Cáceres, Spain, with a peak capacity of 28MW, was connected to the electricity grid and electricity production commenced. The Ellomay Solar PV Plant achieved PAC (Provisional Acceptance Certificate) in July 2022.

D. Development of PV Projects in Italy

In connection with the Framework Agreement executed in December 2019 and further detailed in Note 6.C to the annual financial statements, development of photovoltaic greenfield projects in Italy is progressing as planned. As of the reporting date, the first two photovoltaic plants with an aggregate capacity of approximately 20 MW entered into engineering, procurement & construction agreements (the “EPC Agreements”) with METKA EGN Italy S.r.l., a 100% indirect subsidiary of MYTILINEOS S.A., under the Renewables & Storage Development Business Unit. The EPC Agreements provide a fixed and lump-sum aggregate amount of approximately €16,030 thousand for the complete execution and performance of the works defined in the EPC Agreements. The works include the engineering, procurement and construction of the PV Plants and the ancillary facilities for injecting power into the grid and early O&M services (until the day immediately preceding the Provisional Acceptance Date). The EPC Agreements include additional customary provisions, including with respect to liquidated damages in connection with delays and performance, performance guarantees, suspension and termination. A notice to proceed was issued to the EPC contractor in May 2022 and construction works began. The construction period is expected to be 10 months.

In addition to the aforementioned PV Plants currently under construction, projects with an aggregate capacity of 100 MW reached RTB (“ready to build”) status, projects with an aggregate capacity of 70 MW received applicable licenses and are expected to reach RTB status within approximately 4 months when their appeal period ends, and projects with an aggregate capacity of 250 MW are under advances development stages.

F - 16

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 6 - Investee Companies and Other Investments (cont’d)

E. The Talmei Yosef 9MW Photovoltaic Plant in Israel –

In April 2022, Talmei Yosef entered into a tax assessment agreement with the Israeli Tax Authority for the fiscal years 2015-2020, as per which the tax treatment of the Talmei Yosef Plant was determined to follow IFRIC 12 – Service Concession Agreements. As a result of the tax assessment agreement part of the deferred tax recorded in connection with the Talmei Yosef Plant were converted into current income tax (timing differences of payable income tax) and an amount of approximately EUR 3,200 thousand advance payment of income tax was made.

F. The Talasol Project –

In December 2021, the Talasol Project entered into a New Facilities Agreement in the aggregate amount of €175 million with European institutional lenders (the “Talasol New Facilities Agreement”). Financial closing of the Talasol New Facilities Agreement was achieved in January 2022. The Talasol New Facilities Agreement provides for the provision of two tranches:

a term loan in the amount of €155 million of which the final maturity date is June 30, 2044, and

a term loan in the amount of €20 million of which the final maturity date is December 31, 2042.

Principal and interest repayment are made on a semi-annual basis, end of June and end of December.

The weighted average life of the New Talasol Financing is approximately 11.5 years, and it bears a fixed annual interest rate at a weighted average of approximately 3%.

More information regarding the New Talasol Financing included in Note 11 A to the annual financial statements.

F - 17

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 7 - Financial Instruments

Fair value

(1) Financial instruments - the composition of the derivatives

	June 30,			December 31,
	2022			2021
	€ in thousands
	Unaudited			Audited
Derivatives presented under current assets
Currency swap		55			639
		55			639

Derivatives presented under non-current assets
Swap contracts		997			-
Currency swap		1,721			2,635
		2,718			2,635

Derivatives presented under current liabilities
Swap contracts		(25	)		(3,431	)
Financial power swap		(38,971	)		(11,352	)
		(38,996	)		(14,783	)

Derivatives presented under non-current liabilities
Financial power swap		(24,198	)		(9,542	)
Swap contracts		-			(565	)
		(24,198	)		(10,107	)

F - 18

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 7 - Financial Instruments (cont’d)

Fair value (cont’d)

(2) Financial instruments measured at fair value for disclosure purposes only

The carrying amounts of certain financial assets and liabilities, including cash and cash equivalents, trade receivables, other receivables, other short-term investments, deposits, derivatives, bank overdraft, short-term loans and borrowings, trade payables and other payables are the same or proximate to their fair value.

The fair values of the other financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

June 30, 2022

Fair value

Carrying

Valuation techniques for

Inputs used to

amount

Level 1

Level 2

Level 3

determining fair value

determine fair value

€ in thousands

Non-current liabilities:

Debentures

113,758

109,412

Loans from banks and others (including current maturities)

265,905

247,350

Discounting future cash flows by the market interest rate on the date of measurement.

Discount rate of Euribor+ 1.76%-2.75% with a zero floor, Euribor+ 5.27% fixed rate for 5 years of 2.9%-3.55% and 3%-4.65% and linkage to consumer price index in Israel.

379,663

109,412

247,350

	December 31, 2021
			Fair value
	Carrying								Valuation techniques for	Inputs used to
	amount		Level 1		Level 2		Level 3		determining fair value	determine fair value
	€ in thousands
Non-current liabilities:
Debentures		137,299		140,293		-		-
Loans from banks and others (including current maturities)		218,895		-		223,287		-	Discounting future cash flows by the market interest rate on the date of measurement.	Discount rate of Euribor+ 1.76%-2.75% with a zero floor, Euribor+ 5.27%, fixed rate for 5 years 2.9%-3.55% and 4.65% and linkage to consumer price index in Israel
		356,194		140,293		223,287		-

F - 19

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 7 - Financial Instruments (cont’d)

Fair value (cont’d)

(3) Fair value hierarchy of financial instruments measured at fair value

The table below presents an analysis of financial instruments measured at fair value on the temporal basis using valuation methodology in accordance with hierarchy fair value levels. The various levels are defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical instruments.

Level 2: inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

Level 3: inputs that are not based on observable market data (unobservable inputs).

June 30, 2022

Level 1

Level 2

Level 3

Total

Valuation techniques for

€ in thousands

determining fair value

Marketable securities

1,761

Market price

Swap contracts

972

Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.

Currency swap

1,776

Dori Energy loan

8,863

Fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the required adjustments for the specific loan. The discounting rate was estimated at approximately 11% and the expected annual change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 2.5%.

Financial power swap

(63,169

)

(63,169

)

Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.

There have been no transfers from any Level to another Level during the six months ended June 30, 2022.

F - 20

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 7 - Financial Instruments (cont’d)

Fair value (cont’d)

(3) Fair value hierarchy of financial instruments measured at fair value (cont’d)

	December 31, 2021
	Level 1		Level 2			Level 3			Total			Valuation techniques for
	€ in thousands											determining fair value
Marketable securities		1,946		-			-			1,946		Market price
Swap contracts		-		(3,996	)		-			(3,996	)	Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Currency swap		-		3,274			-			3,274		Fair value is measured by discounting the future cash flows, over the period of the contract and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks.
Dori Energy loan		-		-			8,495			8,495		Fair value is measured by discounting the expected future loan repayments and using market interest rates appropriate for similar instruments, including the adjustment required for the parties’ credit risks. The discounting rate was estimated at approximately 11% and the expected annual change of Israeli Consumer Price Index, during the expected lifetime of the loan, was estimated at approximately 1%.
Financial power swap		-		-			(20,894	)		(20,894	)	Fair value is measured by discounting the future fixed and assessed cash flows, over the period of the contract and using market interest rates appropriate for similar instruments. The value is adjusted for the parties’ credit risks.

(4) Level 3 financial instruments carried at fair value

The table hereunder presents a reconciliation from the beginning balance to the ending balance of financial instruments carried at fair value in level 3 of the fair value hierarchy:

	Financial assets
	Dori Energy loan
	€ in thousands

Balance as at December 31, 2021		8,495

Repayment of loan to an equity accounted investee		(149	)
Loan to an equity accounted investee		-
Total income recognized in profit or loss		208
Interest		592
Foreign Currency translation adjustments		(283	)

Balance as at June 30, 2022		8,863

F - 21

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 7 - Financial Instruments (cont’d)

Fair value (cont’d)

(4) Level 3 financial instruments carried at fair value (cont’d)

	Financial assets
	Financial power swap
	€ in thousands

Balance as at December 31, 2021		(20,894	)

Total loss recognized in other comprehensive income (loss)		(42,275	)

Balance as at June 30, 2022		(63,169	)

F - 22

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 8 - Fixed assets

							Office
	Photovoltaic		Pumped		Biogas		furniture and
	Plants		storage		installations		equipment			Total
	€ in thousands
Cost
Balance as at January 1, 2022		251,027		78,892		35,192		190			365,301
Additions		4,999		13,714		431		14			19,158
Effect of changes in exchange rates		-		-		-		(1	)		(1	)
Balance as at June 30, 2022		256,026		92,606		35,623		203			384,458

Balance as at January 1, 2021		223,626		16,607		34,107		180			274,520
Additions		27,401		62,285		1,085		8			90,779
Effect of changes in exchange rates		-		-		-		2			2
Balance as at December 31, 2021		251,027		78,892		35,192		190			365,301

Depreciation
Balance as at January 1, 2022		17,297		-		6,952		155			24,404
Depreciation for the period		5,868		-		1,497		10			7,375
Effect of changes in exchange rates		-		-		-		(1	)		(1	)
Balance as at June 30, 2022		23,165		-		8,449		164			31,778

Balance as at January 1, 2021		6,286		-		4,002		137			10,425
Depreciation for the year		11,011		-		2,950		16			13,977
Effect of changes in exchange rates		-		-		-		2			2
Balance as at December 31, 2021		17,297		-		6,952		155			24,404

Carrying amounts
As at June 30, 2022		232,861		92,606		27,174		39			352,680
As at December 31, 2021		233,730		78,892		28,240		35			340,897

F - 23

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 9 - Operating Segments

The basis of segmentation and the measurement basis for the segment profit or loss are the same as that presented in Note 22 regarding operating segments in the annual financial statements. Segment assets consist of current assets, fixed assets and intangible assets, as included in reports provided regularly to the chief operating decision maker.

	PV																						Total
						Ellomay									Bio								reportable						Total
	Italy		Spain			Solar			Talasol			Israel¹			Gas			Dorad			Manara		segments			Reconciliations			consolidated
	For the six months ended June 30, 2022
	€ in thousands

Revenues		-		2,081			327			20,402			2,246			5,830			26,756			-		57,642			(28,446	)		29,196
Operating expenses		-		(100	)		(191	)		(7,088	)		(214	)		(5,539	)		(20,769	)		-		(33,901	)		20,769			(13,132	)
Depreciation expenses		-		(452	)		-			(5,655	)		(1,268	)		(1,607	)		(3,240	)		-		(12,222	)		4,244			(7,978	)
Gross profit (loss)		-		1,529			136			7,659			764			(1,316	)		2,747			-		11,519			(3,433	)		8,086
Project development costs																														(1,554	)
General and administrative expenses																														(3,297	)
Share of profits of equity
accounted investee																														(602	)
Operating profit																														2,633
Financing income																														4,439
Financing expenses in connection
with derivatives and warrants, net																														338
Financing expenses																														(6,958	)
Income before taxes on Income																														452
Segment assets as at
June 30, 2022		7,273		15,376			21,684			267,090			36,404			31,661			108,718			120,906		609,112			(34,776	)		574,336

¹ The Talmei Yosef PV Plant located in Israel is presented under the fixed asset model and not under the financial asset model as per IFRIC 12.

F - 24

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 9 - Operating Segments (cont’d)

	PV																					Total
						Ellomay								Bio								reportable						Total
	Italy		Spain			Solar		Talasol			Israel¹			Gas			Dorad			Manara		segments			Reconciliations			consolidated
	For the six months ended June 30, 2021
	€ in thousands

Revenues		-		1,534			-		12,140			2,130			6,129			22,940			-		44,873			(24,480	)		20,393
Operating expenses		-		(423	)		-		(2,054	)		(170	)		(4,925	)		(18,049	)		-		(25,621	)		18,049			(7,572	)
Depreciation expenses		-		(451	)		-		(4,836	)		(1,151	)		(1,552	)		(2,685	)		-		(10,675	)		3,599			(7,076	)
Gross profit (loss)		-		660			-		5,250			809			(348	)		2,206			-		8,577			(2,832	)		5,745
Project development costs																													(1,119	)
General and
administrative expenses																													(2,572	)
Share of profits of equity
accounted investee																													(772	)
Operating profit																													1,282
Financing income																													1,716
Financing expenses in connection
with derivatives and warrants, net																													(109	)
Financing expenses																													(7,745	)
Loss before taxes
on Income																													(4,856	)
Segment assets as at
June 30, 2021		833		15,130			5,589		243,076			35,548			34,903			106,164			90,300		531,543			(34,903	)		496,640

¹ The Talmei Yosef PV Plant located in Israel is presented under the fixed asset model and not under the financial asset model as per IFRIC 12.

F - 25

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 9 - Operating Segments (cont’d)

	PV																					Total
						Ellomay								Bio								reportable						Total
	Italy		Spain			Solar		Talasol			Israel¹			Gas			Dorad			Manara		segments			Reconciliations			consolidated
	For the year ended December 31, 2021
	€ in thousands

Revenues		-		2,587			-		29,432			4,255			12,686			51,630			-		100,590			(54,869	)		45,721
Operating expenses		-		(472	)		-		(6,305	)		(367	)		(10,446	)		(39,175	)		-		(56,765	)		39,175			(17,590	)
Depreciation expenses		-		(904	)		-		(10,586	)		(2,374	)		(3,135	)		(5,539	)		-		(22,538	)		7,422			(15,116	)
Gross profit (loss)		-		1,211			-		12,541			1,514			(895	)		6,916			-		21,287			(8,272	)		13,015
Project development costs																													(2,508	)
General and
administrative expenses																													(5,661	)
Share of loss of equity
accounted investee																													117
Operating profit																													4,963
Financing income																													2,931
Financing expenses in connection
with derivatives and warrants, net																													(841	)
Financing expenses, net																													(28,974	)
Loss before taxes
on Income																													(21,921	)
Segment assets as at
December 31, 2021		1,715		13,841			14,456		247,004			38,809			34,570			118,435			107,678		576,508			(24,529	)		551,979

¹ The Talmei Yosef PV Plant located in Israel is presented under the fixed asset model and not under the financial asset model as per IFRIC 12.

F - 26

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 10 - Leases

1. Material lease agreements entered into during the period

Ellomay Solar Italy One and Ellomay Solar Italy Two each lease land in in the municipality of Latina, Borgo Bainsizza, Lazio Region, Italy from private lessors for a period of 31 years, on which they are constructing photovoltaic facilities. The contractual period of the aforesaid lease agreements ends in May 2053. A right-of-use asset in the amount of €1,335 thousand has been recognized in the statement of financial position in May 2022 in respect of leases of land. A lease liability in the amount of €1,335 thousand has been recognized in the statement of financial position in May 2022 in respect of such leases of land, out of which an amount of €17 thousand has been recognized in short term liabilities.

2. Right-of-use assets

	Italy			Spain			Talasol			Israel			Bio Gas			Manara			Total
	€ in thousands
Cost

Balance as at January 1, 2022		-			2,755			7,587			1,503			170			11,352			23,367
Additions		1,335			-			-			36			-			97			1,468
Depreciation for the period		(5	)		(58	)		(202	)		(59	)		(110	)		(237	)		(671	)
Disposals		-			(394	)		-			-			-			-			(394	)
Effect of changes in exchange rates		-			-			-			(48	)		-			(362	)		(410	)
Balance as at June 30, 2022		1,330			2,303			7,385			1,432			60			10,850			23,360

3. Lease liability

Maturity analysis of the company's lease liabilities

	June 30, 2022
	€ in thousands
Less than one year		675
One to five years		2,840
More than five years		13,366

Total		16,881

Current maturities of lease liability		675

Long-term lease liability		16,206

F - 27

Ellomay Capital Ltd. and its Subsidiaries

Notes to the Condensed Consolidated Unaudited Interim Financial Statements

Note 11 - Subsequent events

In order to manage the currency risk resulting from the Series C Debentures, which are denominated in NIS, the Company executed currency swap transactions in March 2021. The Company exchanged Series C Debentures NIS denominated notional principal in the aggregate amount of NIS 100,000 thousand with a euro notional principal. Such currency swap transactions qualified for hedge accounting.

On August 17, 2022, the company closed the currency swap transaction at a mark to market price of approximately EUR 3.8 million and recorded the proceeds to be received in the same amount against the hedging reserve. The hedging reserve will be recorded as financing expenses over the life of Series C Debentures.

F - 28