Baran : finanicial reports 30 September 2021

This English translation of the Interim is hereby made for convenience purposes only, whilst the complete Hebrew version is the sole binding version. In the event of any conflict between the Hebrew version and this English translation, the Hebrew version (which may be viewed at Baran Group Ltd.'s web site at www.barangroup.com) shall prevail.

BARAN GROUP LTD.

CONSOLIDATED CONCISE FINANCIAL STATEMENTS INTERMEDIATE

FOR 30 SEPTEMBER, 2021

(NOT AUDITED)

BARAN GROUP LTD.

CONSOLIDATED CONCISE FINANCIAL STATEMENTS INTERMEDIATE

FOR 30 SEPTEMBER, 2021

(NOT AUDITED)

TABLE OF CONTENTS

AUDITORS' REPORT

FINANCIAL STATEMENTS (not audited):

Consolidated concise statements of financial position Consolidated concise statements of comprehensive income Consolidated concise statements of changes in equity Consolidated concise statements of cash flows

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Auditors' review to the shareholders of Baran Group Ltd

Introduction

We have reviewed the accompanying financial information of Baran Group Ltd and its subsidiaries ("the Group") which includes the condensed consolidated statement of financial position as of September 30, 2021, and condensed consolidated statements of comprehensive income, changes in equity and cash flows for nine and three months periods then ended. Management is responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 "Interim Financial Reporting" and in accordance with section D of the Israeli Securities Regulations (periodic and immediate reports), 1970. Our responsibility is to express a conclusion on this financial information based on our review.

We did not review the financial information of certain consolidated company, whose assets included in consolidation constitute approximately 4% of total consolidated assets as of September 30, 2021, and whose revenue included in consolidation constitute approximately 4% and 5% of total consolidated revenues for nine and three months periods then ended, respectively. We also did not review the condensed financial information for the interim period of a company presented by the equity method, the investment in which amounted to 1,423 NIS in thousand as of September 30, 2021 and the Company's share of losses of the above-mentioned company amounted to )1( and 6 NIS in thousand for nine and three month periods then ended, respectively. The condensed financial information for the interim period of those companies were reviewed by other auditors whose reports have been furnished to us and our conclusion insofar as it relates to the amounts included for those companies ,is based on the reports of the other auditors.

Scope of Review

We conducted our review in accordance with review standard No (Israel) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Company". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Israeli Standards on Auditing, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, and the reports of other auditors, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34.

In addition to the aforementioned in the previous section, Based on our review and the reports of other auditors, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects in accordance with Section D of the Israeli Securities Regulations (periodic and immediate reports), 1970.

November 24, 2021

Bney Brak

Sincerely yours,

LION, ORLITZKY & CO.

Certified Public Accountants (Isr.)

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BARAN GROUP LTD.

Consolidated Statements of Financial Position

						As of
	As of September 30			December 31
	2021	2020	2020
	NIS '000		NIS '000			NIS '000
Assets	(Not audited)			(audited)
Current assets
Cash and cash equivalents	57,000	39,293	70,522
Short-term deposits	14	92	29,684
Financial assets at fair value through the statement of
income	16,498
Restricted cash	21,547	27,089	23,693
Intended cash for projects	867	5,287	2,506
Other receivables:
Trade receivables and revenues receivable	136,747	141,405	117,589
Other	24,861	28,628	22,740
Current tax assets	7,850	8,075	9,362
Inventory	3,216		2,541			2,423
Total current assets	268,600	252,410	278,519
Non-current assets
Financial assets at fair value through the statement of
income	5,508			5,418
Right of use assets	26,040	30,396	27,501
Investments in affiliated companies	1,717	2,498	1,718
Fixed assets, net	4,144	4,114	4,148
Goodwill	9,763	10,048	9,967
Other intangible assets, net	9,127	8,854	9,480
Other investments, loan and long-term receivable	344	1,243	823
Deferred tax assets	16,846	14,713	13,985
Non-controlling interests' debts for losses	28		70			45
Total non-current assets	73,517	71,936	73,085
Total Assets	342,117		324,346			351,604

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BARAN GROUP LTD.

Consolidated Statements of Financial Position

					As of
As of September 30		December 31
2021	2020		2020
NIS '000		NIS '000			NIS '000

Liabilities and capital

Current liabilities

Short-term credit and current maturities of long-term loans

Current maturities of bonds Current maturities of lease liability Financial derivatives

Other payables: Trade payables Other

Provisions

Liabilities for current taxes

Total current liabilities

Non-current liabilities

Loans and other long-term liabilities less current maturities

Bonds

Liabilities for employee benefits, net

Surplus of the Company's share of the losses of an affiliated company over the investment therein

Lease liability

Provisions

Total non-current liabilities

Capital

Capital relating to the Company's shareholders Ordinary share capital of NIS 1 par value Share premium

Capital reserves

Counters component of complex financial instruments Retained earnings

Less - cost of shares in an investee company by a subsidiary and own holdings

Total capital relating to the holders of the parent company

Non controlling rights

Total capital

Total liabilities and capital

November 24, 2021
Date of approval of the		Meir Dor
financial statements		Chairman of the
		Board

(Not audited)		(audited)

14,220	16,611	11,419
	29,771	29,913
15,025	15,260	13,631
	80
26,284	34,223	26,944
66,378	64,552	56,633
407	661	551
111		26		339
122,425	161,184	139,430

7,389	7,590	7,122
51,575			51,188
11,268	11,395	11,670
580	626	611
13,534	20,267	17,914
393		417		393
84,739	40,295	88,898

26,547	26,547	26,547
127,327	126,750	126,758
)42,302(	)36,496(	)38,101(
	525	525
22,727	4,711	6,735
)1,270(		)1,270(		)1,270(
133,029	120,767	121,194
1,924		2,100		2,082
134,953	122,867	123,276
342,117		324,346		351,604

Yizhak Frank		Tamir sagi
Chief Executive Officer		Chief Financial Officer

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