Board of Directors

Held on 26-11-2007
in Budapest
 Agenda
• Company overview - Oscar
• Countries overviews
– Hungary – Tamir
– Poland – Leon
– Romania – Alex
– Croatia - Alex
– Ukraine - Discussion on investment Via Nanette / ROBYG SA - Oscar
• Review and approve the quarterly accounts of the Company for the period
ending Sep 30, 2007.
• Cash flow – forecasts – Ran
• Dividend distribution.
• Internal Audit plan
• Discussion about Transfer-prices
• Purchase Dalton’s Nanette shares by the company.
• New Director from London
• Confirming the board meeting protocol dated 28.3.2007
• Misc.
 General company overview
• During the third quarter the company accelerated activities in Romania and
Croatia.
• The reorganization process continues in Poland and expected to be completed
during first quarter of 2008.
• The IPO preparation process in Poland is on final stages and we expect to file the
prospectus by the end of first quarter 2008.
• The company result continue to improve and the 6 month result show a profit of
over Euro 10.6 million.
• Although the turmoil in the financial markets and on the Real Estate sector in
particularly, Nanette’s currant projects are expected to proceed according to
plans.
 Nannette Real Estate Group
N.V. - HOLLAND

Robyg B.V. 100%

Hungary Poland Croatia Romania

Nanette Real
Nanette Borovje D.O.O
100%
Estate Development 100%
Real Prop House KFT. Robyg Investment sp.z.o.o Robyg SA 47.5%
MANDARIN 50,1% URYSNOW 70.01%

Nanette Bucharest
Star Development sp.z.o.o Robyg City Apartments Properties Lacul
Immo Prop KFT 100% Mori 95 + 5%
TUZER 57,5% ZOLIBORZ 75%

Robyg Galicia
Robyg Wilanow II. Sp.z.o.o Nanette City Gate
Karolina Udvar KFT 80% TIMMISUARA ZIGANE
WILANOW II 85%
KAROLINA 57,5% 95+5%
Robyg Ogrod sp z.o.o
GLINIANKI 46% Mzm Properties sp.z.o.o Nanette Heights
Foodex 2003 KFT
90% Robyg Park sp.z.o.o TIMISOARA SRL SIAT 95 + 5%
MAGNOLIA 57,5% Wllodazewska 70%

Robyg Development II. Sp.z.o.o

Nanette Pipera Properties
Gondola Haz KFT WILANOW II 100% SRL 95 + 5%
GONDOLA 50%
Robyg Palacova
Nanette North Start
100% TIMISOARA SRL
Zold Park Haz KFT
GREEN PARK 77,5% 95 + 5%
Robyg Morena sp.z.o.o
GDANSK 80% Robyg Piekarnicza
sp.z.o.o California Group SRL
Thokoly Udvar KFT 100% SAVINESTI 100%
V’AROSLIGET 89,4% Robyg Jagodno Estates
49%

Kamaraerdo KFT
Robyg Wroclaw II.sp.z.o.o
100%
Kamara
Wroclaw 100%
PROJEKT KFT 50%

Nanette Construction Robyg Marina Tower

100% 100%
Nanette owns a share of the units stated above
Current share circa 55% - 2007 could be lower 5
6
Poland
 General overview
• The Polish economy continues to be very strong.
• Due to the election and the political changes in the country before the election a
significant slowdown in sale is felt in the market.
• We are focusing on search for locations in Warsaw, Gdansk, Wroclaw, and Krakow.
• Our local office in Gdansk and Wroclaw are open and active.
• The completion of the company’s reorganization process is postponed to early
January 2008 due to a tax problem of our partner LEBREP.
• We are closely monitoring the market and our competitions performance in the
market to come to a final decision concerning the IPO.
• Jointly with LEBREP we sold to the Rothschild group 25% of ROBYG City Apartment
– Zolirborz project.
• We received a building permit for Zolirborz; by year end we expect to start sales.
• The court rejected the law suite against us.
ROBYG Development, Warsaw

• The project has 1,242 apartments and 3

commercial units executed in 10 stages.
• Stage 1 and 2 have been completed and 327
apartments handed over.
• The compilation of the project planned for
4Q of 2010.
Stage Apartments Status
Total Sold %
1 162 161 99% Completed
2 167 166 99% Completed
3 122 107 88% Complete by Q4
4 106 22 21% Start of Work
9 121 98 81% Complete by Q1

Stages 6,7,8,10, 5 – working on design and

obtaining permits, so work schedule will start
on time.

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ROBYG Wilanow II, Warsaw

• The project will have 840 apartments

and 3 commercial units executed in 5
stages.
• Work is done on stage 1.
• Stage 1 with 177 apartments, 145
apartments have been sold.
• Skeleton was completed during Sep.
• We are currently waiting for
environmental report for stages 2-5.
• The compilation of the entire project
planned for Q4 of 2010.

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ROBYG Park – Wlodazewska, Warsaw

• The project has 300 apartments and 4

commercial units executed in 3 stages.
• The first stage has been completed and
the other stages are under construction.
• The majority of the apartments have
been sold.
Stage Apartments Status
Total Sold %
1 112 112 100% Complete Q3-07
2 112 112 100% Complete Q1-08
3 76 61 80% Complete Q2-08

• The compilation of the entire project

planned for Q2 of 2008.

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ROBYG City Apartments – Zoliborz, Warsaw

• The Project will have 1,151 apartments

executed in 7 stages.
• Building permit for stage 1 was issued
during October; we started construction
and the sale of apartment will start in
December.
• The Rothschild group deal was concluded
and we recognized a profit of app. Euro 6
millions
• Finance of the project was concluded with
NORDEA bank
• The compilation of the entire construction
planned for Q2 of 2011.

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ROBYG Ogrod Jelonki – Bemowo, Warsaw

• Plot area of approximately 37,800 sq.m.

• The project is estimated to have 350
apartments to be executed in 4 stages.
• The land purpose is agricultural; the
company is in the process of changing
the purpose of the land to residential.
• We have concluded this week the
purchase of Frandilem share in the
project.

• The management estimate start of work

at Q2 of 2008 and to be completed by
Q4 of 2011.

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Palacowa
• The 42 H. Plot located in Gdansk in a prime location with expected net sellable area of about 220,000 sq.m.
• The project is estimated to have 3,399 apartments to be executed in 7 stages.
• Due to some objections for our building permits some modifications had to be made and we believe that we will be
able to start construction at Q1of 2008 and expect to complete by Q4 of 2011.
• Finance of the project is in final stages with NORDEA bank
• Due to the large size of the project the company is designating at this stage 2/3 of the parcel as investment property.

ROBYG - Morena
• The Plot is situated in a prime location in Gdansk, approximately 4 km. from the city center and with excellent
transportation.
• Parcel area of approximately 13 hectares with net sellable area of about 120,000 sq.m.
• The project is estimated to have 1,500 apartments executed in 13 stages.
• The project is planned to have different apartment types: apartment towers, medium height buildings and
low build unit – offering wider variety to the potential buyers.
• Construction of the project is planned to start by Q2 of 2008 and expected to be completed by Q4 of 2011.
• Due to the size of the project and the different elements the company plan to start 4 stags at the same time.

ROBYG Wroclaw I – Wroclaw Krzyki

• The plot located in Wroclaw, approximately 5 km. from the city center and with excellent transportation,
with a Parcel area of approximately 51,400 sq.m and net sellable area of about 55,000 sq.m.
• The project is estimated to have 896 apartments executed in 5 stages.
• Construction of the project is planned to start on Q4 of 2008 and expected to be completed by Q4 of 2011.

14
Hungary
 General overview
• The consumer price index shows a year-to-date inflation of 6.7%; that is still higher
than the expectations .
• The Q3 growth figure proved to be again lower than the experts expected, the
growth of 1.4 % is below expectations.
• Plots with good location, suitable for building of bigger condominiums are running
out, the competition between investors is strong.
• Prices of newly build residential apartments rose by 6-7% this year, though in
some cases we can also see a rise of 10-15%.
• The effect of the planned real-estate tax and the modified limit of luxury tax is not
yet expressed in the demand, though the introduction of VAT on plots of over 15
million HUF of value and on trade of apartments not older then two years will
cause rise of demand till the end of the year.
• We have sold 237 apartment from the beginning of the year and expect to reach
our annual average of 300 sold flats.
• We will have 500 flats under construction to sell.
ZÖLD LIGET APARTMENAHÁZ – Zöld Park Ház Kft.

• The project has 428 apartments and

1,186 Sqm of commercial area executed
in 2 stages.
• The Project has been completed.
• One more apartment to sell

Stage Apartments Status

Total Sold %
A+B+C 281 281 100% Completed
D+E 147 147 100% Completed

17
VÁROSLIGET APARTMANHÁZ - Thököly Udvar Kft.

• The project has 314 apartments executed in

4 stages.
• Stage 1 has been completed and 163
apartments have been handed over.
• The compilation of the project planned for
Q2 of 2008.
• 2nd stage of the project will be completed by
Nanette Construction. Structure ready.

Stage Apartments Status

Total Sold %
A+B 163 163 100% Completed
C+D 151 68 45% Complete Q1 08

18
KAROLINA UDVAR – Karolina Udvar Kft.

• The project has 146 apartments.

• The Project has been completed.
• 140 apartments have been sold

19
MANDARIN – Real Prop Kft

• The project has 417 apartments and 563

Sqm of commercial area executed in 2
stages.
• We expect delay of 4 month to receive the
final usage permit. Because of the change of
the trafo house.
• The compilation of the project planned for
2Q of 2008.

Stage Apartments Status

Total Sold %
A 225 167 74% Complete Q3-07
B 246 41 17% Complete Q2-08

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MAGNOLIA – Foodex Kft.

• The project has 210 apartments and 289

Sqm of commercial area executed in 2
stages.
• The skillet of the first stage is ready, walls are
being pulled up.
• After the bankruptcy of the constructor
Nanette Construction Hungary will construct.
• We will overrun the initial budget. We can
not asses it yet

Stage Apartments Status

Total Sold %
A 100 89 89% Complete Q1-08
B 110 8 7% Complete Q4-08

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 TÜZÉR – Immo Prop Kft.
• The project has 99 apartments and 187 Sqm of commercial area executed in 1
stage.
• 42 apartments and all commercial units have been sold.
• Project is constructed by Nanette Construction Hungary.

GONDOLA – Gondola Kft.

• Zoning plan change is in process.
• Lehman owns 50% out of the shares of the company.
• Land financing was received. 77% of the equity.

11th District
• The municipality transferred 28 dunam of the land to the joint company.
• Nanette transferred 900 000 euro.
• The current zoning of the area is residential.
• Architect was chosen to plan the exact lay out of the plot.
• Evacuation is being executed
• We are proceeding to receive PUD.
• We have agreed with the neighboring municipality (Budaörs) to connect to
their sewage system.

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Romania
 General overview
• The residential market in Bucharest is still imbalanced as the gap is significant
between supply and demand especially on the medium income segment from
which demand will remain strong.
• Majority of the lately build projects has targeted the upper class segment.
– Villas are priced at 1 200-1 500€/sqm, apartments between 2 000-2 500€/sqm.
– Starting prices of flats for the medium income segment are 1 100-1 400€/sqm and will increase by
20% next year.
• The growing demand for newly built living spaces is generated by the rise in
disposable income and affordable bank loans.
• Most customers prefer to purchase apartments from 60 sqm to 90 sqm.
• Though currently the average size of a newly built apartment is 38 to62 sqm.
 LACUI MORI - Bucharest
• The project is situated in the Western part of the city of Bucharest near to a lake.
• The project is a housing complex which will be built on a 10,400-sqm of land.
• The project will have 276 apartments that will be constructed in 3 high-rise buildings (12
floors) and 276 parking places.
• The average apartment size of the in the project is about 90 Sqm brut, which will be sold at an
average price per Sqm. of € 1,200 Ex. VAT.
• LEBREP has entered in 50% to the project
SAVINESTI – Bucharest
• The project is situated in the Eastern part of Bucharest in sector 4.
• The project is a housing complex which will be built on a 8 800-sqm land and have 355
apartments and 355 parking places.
• The average apartment size in the project is about 90 Sqm brut, which will be sold at an
average price per Sqm of € 1,200 Ex. VAT.

Lacul Straulesti - Bucharest

• The project is located in the northern part of Bucharest near Straulesti lake and near the ring
road of Bucharest this area is undergoing rapid development
• The project is a housing complex which will be built on a 31 000-sqm land and will have 900
apartments and 900 parking places

25
 CITY GATE (Zigaine) - Timisoara

• The project is situated in the Northern part of Timisoara at the city gate near the main road
coming from Hungary.
• The project a housing complex built on land area of 17,809-sqm and having 524 apartments
and 524 parking places.
• The average apartment size in the project is approx. 90 sqm brut, which will be sold at an
average price per Sqm of € 1,100 Ex. VAT.
SIAT - Timisoara

• The project is situated in the Northern part of Timisoara at the city gate near the main road
coming from Hungary.
• The project is a housing complex built on a 12,500-Sqm land and having 125 apartments and
134 parking places.
• The average area of the apartments in the project is about 90 Sqm brut, which will be sold at
an average price per Sqm of € 1,100 Ex. VAT.

26
Croatia
 General overview
• Zagreb the capital city of Croatia with population of 780 000 and the main business and the
economic centre.
• Unemployment rate is 7% the lowest in the country and the average monthly wage is 700€.
• Lack of apartments is mostly presented in large cities since no significant residential
constructions were carried out in the last 30 years.
• Demand growing strongly driven by the increase in the availability of affordable loans for
younger people.
• Better economic prospects for many first-time buyers has strengthened their impact on the
market.
• There is an estimated demand of 50,000 apartments while constructions started for only
8,500 units annually.
• The clear gap between supply and demand attracts more and more investors and
developers.
• Prices of newly build apartments range from € 1,800 to € 2 400, annual price growth rate is
around 5%.
Borovje
• The project is located in the Southern part of the city in a green area near the
river.
• The land is 60,000 Sqm and consist of several separately-owned plots.
• We sign a pre-contract with the owner of a cca. 15 000-sqm plot.
• We are planning to build a neighborhood of 950 units according to the 300% coeffi
cient.
• Sales price in a project nearby is € 1,900 including VAT.

Laniste
• We have signed the final agreements with the owners of the land plots in Laniste
(An offer that was introduced to the Board in August 2007) and acquired a total
area of 45 000 sqm. 10% of the sum was paid during closing and we are now
working on extending the land co-efficiency to at least CUT 2.

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Ukraine
 Lusa Gora, Kiev – Ukrain
• Following previous decisions of the board to participate in investment in Ukraine in the scale of 10%-15%
please find the following proposed project participation that was purchased by Olimpia Europe
Construction BV – a Dutch company held by Olimpia Holding Ltd. (45%) – Olimpia holds approx. 30% of
Nanette.
• The Project is located in the centre of Kiev, total plot area is 118,600 m2 and a total gross buildable area is
currently 180,000 m2 – the designation of the land is residential and according to the attached budget it is
possible to build approximately 2,000 units.
• The land cost will amount to approximately Euro 25 Millions however the equity assumptions that we will
have to invest additional Euro 4 million to finance to finance 50% of the construction of the first stage,
bringing to a total equity investment of Euro 29 million (Nanette 15%=> app. Euro 4.5 million).
• The expected revenues of the project are Euro 283 millions and the expected cost are Euro 179 millions,
resulting in expected in expected profit of Euro 105 million; in terms of return on investment the project is
expected to have a return on equity of 363%.
• Highlight of the deal:
• The total expected investment of Nanette – Euro 4.5 million for a 15% participation in the project
• Investment timing – Euro 70 thousands upon signature, the balance should be transferred after one
month, once the due-diligent process has been completed.
• The project company will have management costs of 6% (of the project costs) – 4% for the management
company and 2% for Olimpia Europe construction.
• This transaction from Nanette point of view is a related party transaction and should be approved as such
by the board and by our NOMAD.
Financial information
 P&L
Nine months ended Year ended
September 30 December 31
2007 2006 2006
audited Audited

Revenues 16,553 10,795 31,869

Cost of revenues 13,087 8,700 25,520
Gross profit 3,466 2,095 6,349
Fair value adjustment
of investment properties 792 - -

Marketing, general and 3,772 2,082 3,358

administrative expenses
486 13 2,991
Operating profit (loss)
(9,270) (3,029) (3,602)
Finance costs 12,131 2,837 5,835
Finance income
Other income 8,406 2,142 4,216
11,753 1,104 9,440
Profit (loss) before taxes on income
Taxes on income 1,108 184 1,079

Profit (loss) for the year 10,645 920 8,361

10,009 732 7,031
Attributable to: Equity holders
of the parent Minority interest 636 188 1,330

Earnings per share attributable to 10,645 920 8,361

equity holders of the parent (in 0.06 0.01 0.06
Euro): Basic and dilute
35
 Balance Sheet- Assets
Sep 30, December 31,
2007 2006 2006
ASSETS Unaudited Audited

CURRENT ASSETS :
Cash and cash equivalents 67,478 11,696 5,511
Deposits 21,351 17,147 24,709
Trade and other receivables 16,558 8,545 8,088
Inventory of other receivables 109,721 62,004 71,858

215,108 99,392 110,166

NON-CURRENT ASSETS :
Land 12,265 - 4,715
Investment properties 13,515 - 6,749
Furniture and equipment 263 34 137
Goodwill
1,850 912 1,141
Investment in associate
- 11,243 -
Deferred tax asset 639 314 223
Other financial assets 17,890 10,220 14,415

46,422 22,723 27,380

261,530 122,115 137,546

Total assets

36
 Balance Sheet – Liabilities end equity
Sep 30, December 31,
LIABILITIES AND EQUITY 2007 2006 2006
Unaudited Audited
CURRENT LIABILITIES :
Interest bearing loans and borrowings 32,765 32,162 34,464
Trade and other payables 25,410 1,981 11,081
Customer advances 28,143 16,319 19,637
86,318 50,462 65,182
NON-CURRENT LIABILITIES :
Interest bearing loans and borrowings 91,778 45,290 35,853
Other liabilities 968 528 1,586
Deferred tax liability 1,519 303 2,752
94,265 46,121 40,191
Total liabilities 180,583 96,583 105,373
EQUITY :
Equity attributable to equity holders of the parent :
Share capital 70,850 23,153 23,184
Other reserves (3,109) 1,654 759
Retained earnings (accumulated deficit) 12,357 (443) 6,330
80,098 24,364 30,273
Minority equity 849 1,168 1,900

Total equity 80,947 25,532 32,173

Total liabilities and equity 261,530 122,115 137,546

37