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| Yitschak Barabi, Finance Manager4 Nahal Harif St. Northern Industrial Zone,Yavne 81106, IsraelTel: 972-8-932-1000 |
|-------------------------------------------------------------------------------------------------------------------|
| (Name, Telephone, E-mail and/or Facsimile number and Address of Registrant's Contact Person)                      |
| Title of class                                           |   | Name of each exchange on which registered |
|----------------------------------------------------------|--------|-------------------------------------------|
|                                                     |   |                                      |
| Ordinary Shares, NIS 0.10 par value per share  |   | Nasdaq Capital Market                     |

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| Exhibit Number | Description                                                                                                                                                           |   |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|  12.1     |  Certification of CEO of the Company pursuant to Rule 13a-14(a), as adopted pursuant to                  Section 302 of the Sarbanes-Oxley Act of 2002 (*)  |
| 12.2           | Certification of CFO of the Company pursuant to Rule 13a-14(a), as adopted pursuant to                  Section 302 of the Sarbanes-Oxley Act of 2002 (*)        |
| 13.1           | Certification of CEO of the Company pursuant to Rule 13a-14(b), as adopted pursuant to                  Section 906 of the Sarbanes-Oxley Act of 2002 (*)        |
| 13.2           | Certification of CFO of the Company pursuant to Rule 13a-14(b), as adopted pursuant to                  Section 906 of the Sarbanes-Oxley Act of 2002 (*)             |
|  (*) |  Filed Herewith |   |   |
|-----------|----------------------|--------|--------|

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**G. WILLI-FOOD INTERNATIONAL LTD.**

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**CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF DECEMBER 31, 2018**

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**G. WILLI-FOOD INTERNATIONAL LTD.**

****

**CONSOLIDATED FINANCIAL STATEMENTS**

**AS OF DECEMBER 31, 2018**

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**TABLE OF CONTENTS**

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|                                                    | Page        |
|---------------------------------------------------------|-------------|
|                                                    |        |
| Report of Independent Registered Public Accounting Firm | F-2 - F-3   |
|                                                    |        |
| Financial Statements:                                   |        |
|                                                    |        |
| Statements of financial position                        | F-4 - F-5   |
|                                                    |        |
| Statements of Income                                    | F-6         |
|                                                    |        |
| Statements of comprehensive Income                      | F-7         |
|                                                    |        |
| Statements of Changes in Equity                         | F-8         |
|                                                    |        |
| Statements of Cash Flows                                | F-9 - F-10  |
|                                                    |        |
| Notes to the Financial Statements                       | F-11 - F-56 |

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|                                                  |   |   |   |   | December 31, |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------------|--------|
|                                                  |   | Note   |   |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 (*) |   |
|                                                  |   |   |   |   | NIS          |   |   | NIS |   |   | US Dollars |   |
|                                                  |   |   |   |   |         |   |   |   |   |   |   |   |
| Assets                                                |   |   |   |   |         |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |         |   |   |   |   |   |   |   |
| Current assets                                        |   |   |   |   |         |   |   |   |   |   |   |   |
| Cash and cash equivalents                             |   |   | 4a     |   |         |   | 134,287 |   |   |   | 113,062 |   |   |   | 35,829 |   |
| Financial assets at fair value through profit or loss |   |   | 4b     |   |         |   | 137,904 |   |   |   | 143,514 |   |   |   | 36,794 |   |
| Trade receivables                                     |   |   | 4c     |   |         |   | 98,017 |   |   |   | 85,943 |   |   |   | 26,152 |   |
| Other receivables and prepaid expenses                |   |   | 4d     |   |         |   | 3,744 |   |   |   | 5,996 |   |   |   | 999 |   |
| Inventories                                           |   |   | 4e     |   |         |   | 49,289 |   |   |   | 39,899 |   |   |   | 13,151 |   |
| Current tax assets                                    |   |   |   |   |         |   | 862 |   |   |   | 6,760 |   |   |   | 230 |   |
| Total current assets                                  |   |   |   |   |         |   | 424,103 |   |   |   | 395,174 |   |   |   | 113,155 |   |
|                                                  |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Non-current assets                                    |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment                         |   |   |   |   |         |   | 79,611 |   |   |   | 78,598 |   |   |   | 21,241 |   |
| Less -accumulated depreciation                        |   |   |   |   |         |   | 40,219 |   |   |   | 37,389 |   |   |   | 10,731 |   |
|                                                  |   |   | 6      |   |         |   | 39,392 |   |   |   | 41,209 |   |   |   | 10,510 |   |
|                                                  |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                              |   |   | 7      |   |         |   | 36 |   |   |   | 36 |   |   |   | 10 |   |
| Deferred taxes                                        |   |   | 10c    |   |         |   | 2,882 |   |   |   | 503 |   |   |   | 769 |   |
| Total non-current assets                              |   |   |   |   |         |   | 42,310 |   |   |   | 41,748 |   |   |   | 11,289 |   |
|                                                  |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                          |   |   |   |   |         |   | 466,413 |   |   |   | 436,922 |   |   |   | 124,444 |   |

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|                                                                        |   |   |   |   | December 31, |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|--------------|--------|
|                                                                        |   | Note   |   |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 (*) |   |
|                                                                        |   |   |   |   | NIS          |   |   | NIS |   |   | US Dollars |   |
| Equity and liabilities                                                      |   |   |   |   |         |   |   |   |   |   |   |   |
|                                                                        |   |   |   |   |         |   |   |   |   |   |   |   |
| Current liabilities                                                         |   |   |   |   |         |   |   |   |   |   |   |   |
| Trade payables                                                              |   |   | 8a     |   |         |   | 16,239 |   |   |   | 12,800 |   |   |   | 4,333 |   |
| Employees Benefits                                                          |   |   | 9b     |   |         |   | 2,577 |   |   |   | 2,147 |   |   |   | 688 |   |
| Other payables and accrued expenses                                         |   |   | 8b     |   |         |   | 5,882 |   |   |   | 5,246 |   |   |   | 1,569 |   |
| Total current liabilities                                                   |   |   |   |   |         |   | 24,698 |   |   |   | 20,193 |   |   |   | 6,590 |   |
|                                                                        |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Non-current liabilities                                                     |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Retirement benefit obligation                                               |   |   | 9b     |   |         |   | 836 |   |   |   | 1,148 |   |   |   | 223 |   |
| Total non-current liabilities                                               |   |   |   |   |         |   | 836 |   |   |   | 1,148 |   |   |   | 223 |   |
|                                                                        |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders' equity                                                        |   |   | 12     |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Share capital                                                               |   |   |   |   |         |   | 1,425 |   |   |   | 1,425 |   |   |   | 380 |   |
| Additional paid in capital                                                  |   |   |   |   |         |   | 128,354 |   |   |   | 128,354 |   |   |   | 34,246 |   |
| Capital fund                                                                |   |   |   |   |         |   | 247 |   |   |   | 247 |   |   |   | 66 |   |
| Retained earnings                                                           |   |   |   |   |         |   | 311,476 |   |   |   | 286,509 |   |   |   | 83,105 |   |
| Capital Fund measurement of the net liability in respect of defined benefit |   |   |   |   |         |   | (623 | ) |   |   | (954 | ) |   |   | (166 | ) |
| Equity attributable to Shareholders' of the Company                         |   |   |   |   |         |   | 440,879 |   |   |   | 415,581 |   |   |   | 117,631 |   |
|                                                                        |   |   |   |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Total equity and liabilities                                                |   |   |   |   |         |   | 466,413 |   |   |   | 436,922 |   |   |   | 124,444 |   |

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|                                      |   |   |   |   | Year ended December 31, |   |
|-------------------------------------------|--------|--------|--------|--------|-------------------------|--------|
|                                      |   | Note   |   |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 (*) |   |
|                                      |   |   |   |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |
| Revenue                                   |   |   | 13a    |   |                    |   | 338,245 |   |   |   | 311,978 |   |   |   | 294,202 |   |   |   | 90,247 |   |
| Cost of sales                             |   |   | 13b    |   |                    |   | 240,032 |   |   |   | 237,645 |   |   |   | 217,585 |   |   |   | 64,043 |   |
| Gross profit                              |   |   |   |   |                    |   | 98,213 |   |   |   | 74,333 |   |   |   | 76,617 |   |   |   | 26,204 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses              |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                          |   |   | 13c    |   |                    |   | 43,823 |   |   |   | 42,090 |   |   |   | 39,405 |   |   |   | 11,692 |   |
| General and administrative expenses       |   |   | 13d    |   |                    |   | 16,686 |   |   |   | 15,839 |   |   |   | 14,577 |   |   |   | 4,452 |   |
| Other Income                              |   |   | 14     |   |                    |   | (69 | ) |   |   | (361 | ) |   |   | (112 | ) |   |   | (18 | ) |
|                                      |   |   |   |   |                    |   | 60,440 |   |   |   | 57,568 |   |   |   | 53,870 |   |   |   | 16,126 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating profit                          |   |   |   |   |                    |   | 37,773 |   |   |   | 16,765 |   |   |   | 22,747 |   |   |   | 10,078 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Finance Income                            |   |   | 15a    |   |                    |   | (7,212 | ) |   |   | 17,937 |   |   |   | (3,425 | ) |   |   | (1,924 | ) |
| Finance expense                           |   |   | 15b    |   |                    |   | (2,256 | ) |   |   | 3,769 |   |   |   | 3,143 |   |   |   | (602 | ) |
| Finance Income (expense), net             |   |   |   |   |                    |   | (4,956 | ) |   |   | 14,168 |   |   |   | (6,568 | ) |   |   | (1,322 | ) |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit before taxes on Income             |   |   |   |   |                    |   | 32,817 |   |   |   | 30,933 |   |   |   | 16,179 |   |   |   | 8,756 |   |
| Taxes on Income                           |   |   | 10a    |   |                    |   | (7,850 | ) |   |   | (5,910 | ) |   |   | (5,327 | ) |   |   | (2,094 | ) |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                |   |   |   |   |                    |   | 24,967 |   |   |   | 25,023 |   |   |   | 10,852 |   |   |   | 6,662 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                       |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                  |   |   |   |   |                    |   | 1.89 |   |   |   | 1.89 |   |   |   | 0.82 |   |   |   | 0.50 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                |   |   |   |   |                    |   | 1.89 |   |   |   | 1.89 |   |   |   | 0.82 |   |   |   | 0.50 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in computation of basic EPS   |   |   |   |   |                    |   | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |
|                                      |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in computation of diluted EPS |   |   |   |   |                    |   | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |

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|                                                                                                                                         |   | Year ended December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                         |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 (*) |   |
|                                                                                                                                         |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                                                                                                                         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                                                                   |   |                    | 24,967 |   |   |   | 25,023 |   |   |   | 10,852 |   |   |   | 6,662 |   |
|                                                                                                                                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive Income (Expenses)                                                                                                        |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Re-measurement of net liabilities with respect to a defined benefit which will not be classified in the future as profit or loss, net of tax |   |                    | 331    |   |   |   | (446 | ) |   |   | (311 | ) |   |   | 88 |   |
|                                                                                                                                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive Income for the year                                                                                                      |   |                    | 331    |   |   |   | (446 | ) |   |   | (311 | ) |   |   | 88 |   |
|                                                                                                                                         |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive Income for the year                                                                                                      |   |                    | 25,298 |   |   |   | 24,577 |   |   |   | 10,541 |   |   |   | 6,750 |   |

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|                                                           |   | Share capital |   |   | Additional paid in capital |   |    | Measurement of the net liability in respect of defined benefit |   |   | Capital fund |   |   | Retained earnings |   |   | Total shareholders' equity |   |
|----------------------------------------------------------------|--------|---------------|--------|--------|----------------------------|--------|---------|----------------------------------------------------------------|--------|--------|--------------|--------|--------|-------------------|--------|--------|----------------------------|--------|
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |
| Balance - January 1, 2016                                      |   |          | 1,425  |   |                       |   | 128,354 |                                                           |   |   | (197         | )      |   |              | 247    |   |                       |   | 269,883 |   |   |   | 399,712 |   |
| Profit for the year                                            |   |          | -      |   |                       |   | -       |                                                           |   |   | -            |   |   |              | -      |   |                       |   | 10,852 |   |   |   | 10,852 |   |
| Measurement of the net liability in respect of defined benefit |   |          | -      |   |                       |   | -       |                                                           |   |   | (311         | )      |   |              | -      |   |                       |   | - |   |   |   | (311 | ) |
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |   |   |   |   |   |   |
| Total comprehensive Income for the year                        |   |          | -      |   |                       |   | -       |                                                           |   |   | (311         | )      |   |              | -      |   |                       |   | 10,852 |   |   |   | 10,541 |   |
| Dividend distribution                                          |   |          | -      |   |                       |   | -       |                                                           |   |   | -            |   |   |              | -      |   |                       |   | (19,249 | ) |   |   | (19,249 | ) |
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |   |   |   |   |   |   |
| Balance - December 31, 2016                                    |   |          | 1,425  |   |                       |   | 128,354 |                                                           |   |   | (508         | )      |   |              | 247    |   |                       |   | 261,486 |   |   |   | 391,004 |   |
| Profit for the year                                            |   |          | -      |   |                       |   | -       |                                                           |   |   | -            |   |   |              | -      |   |                       |   | 25,023 |   |   |   | 25,023 |   |
| Measurement of the net liability in respect of defined benefit |   |          | -      |   |                       |   | -       |                                                           |   |   | (446         | )      |   |              | -      |   |                       |   | - |   |   |   | (446 | ) |
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |   |   |   |   |   |   |
| Total comprehensive Income for the year                        |   |          | -      |   |                       |   | -       |                                                           |   |   | (446         | )      |   |              | -      |   |                       |   | 25,023 |   |   |   | 24,577 |   |
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |   |   |   |   |   |   |
| Balance - December 31, 2017                                    |   |          | 1,425  |   |                       |   | 128,354 |                                                           |   |   | (954         | )      |   |              | 247    |   |                       |   | 286,509 |   |   |   | 415,581 |   |
| Profit for the year                                            |   |          | -      |   |                       |   | -       |                                                           |   |   | -            |   |   |              | -      |   |                       |   | 24,967 |   |   |   | 24,967 |   |
| Measurement of the net liability in respect of defined benefit |   |          | -      |   |                       |   | -       |                                                           |   |   | 331          |   |   |              | -      |   |                       |   | - |   |   |   | 331 |   |
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |   |   |   |   |   |   |
| Total comprehensive Income for the year                        |   |          | -      |   |                       |   | -       |                                                           |   |   | 331          |   |   |              | -      |   |                       |   | 24,967 |   |   |   | 25,298 |   |
|                                                           |   |          |   |   |                       |   |    |                                                           |   |   |         |   |   |              |   |   |                       |   |   |   |   |   |   |   |
| Balance - December 31, 2018                                    |   |          | 1,425  |   |                       |   | 128,354 |                                                           |   |   | (623         | )      |   |              | 247    |   |                       |   | 311,476 |   |   |   | 440,879 |   |

----

|                                                                                   |   | Year ended December 31, |    |
|----------------------------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                                   |   | 2 0 1 8                 |    |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 (*) |  |
|                                                                                   |   | NIS                     |    |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |
| Profit from operations                                                                 |   |                    | 24,967  |   |   |   | 25,023 |   |   |   | 10,852 |   |   |   | 6,662 |   |
| Adjustments to reconcile net profit to net cash from operating activities (Appendix A) |   |                    | 2,074   |   |   |   | (10,584 | ) |   |   | 6,500 |   |   |   | 552 |   |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash from operating activities                                                     |   |                    | 27,041  |   |   |   | 14,439 |   |   |   | 17,352 |   |   |   | 7,214 |   |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows - investing activities                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition of property plant and equipment                                            |   |                    | (2,143  | ) |   |   | (2,650 | ) |   |   | (1,915 | ) |   |   | (572 | ) |
| Proceeds from sale of property plant and Equipment                                     |   |                    | 415     |   |   |   | 361 |   |   |   | 190 |   |   |   | 111 |   |
| Redemption (acquisition) of non-current financial assets                               |   |                    | 3,970   |   |   |   | 2,168 |   |   |   | (8,504 | ) |   |   | 1,060 |   |
| Proceeds from short term deposit                                                       |   |                    | -       |   |   |   | - |   |   |   | 20,288 |   |   |   | - |   |
| Proceeds from (used in) purchase of marketable securities, net                         |   |                    | (8,058  | ) |   |   | (30,833 | ) |   |   | 42,010 |   |   |   | (2,150 | ) |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash from (used in) investing activities                                           |   |                    | (5,816  | ) |   |   | (30,954 | ) |   |   | 52,069 |   |   |   | (1,551 | ) |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows - financing activities                                                      |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend distribution                                                                  |   |                    | -       |   |   |   | - |   |   |   | (19,249 | ) |   |   | - |   |
| Short-term bank debt                                                                   |   |                    | -       |   |   |   | - |   |   |   | (16 | ) |   |   | - |   |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash from (used in) financing activities                                           |   |                    | -       |   |   |   | - |   |   |   | (19,265 | ) |   |   | - |   |
|                                                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                       |   |                    | 21,225  |   |   |   | (16,515 | ) |   |   | 50,156 |   |   |   | 5,663 |   |
| Cash and cash equivalents  at the beginning of the financial year                 |   |                    | 113,062 |   |   |   | 129,577 |   |   |   | 79,421 |   |   |   | 30,166 |   |
| Cash and cash equivalents of the end of the financial year                             |   |                    | 134,287 |   |   |   | 113,062 |   |   |   | 129,577 |   |   |   | 35,829 |   |

----

|                                                                                                                                              |   | Year ended December 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                              |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 (*) |   |
|                                                                                                                                              |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
| Cash flows from operating activities                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |
| A.         Adjustments to reconcile net profit to net cash from                      operating activities |   |                    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |
| Decrease (Increase) in deferred income taxes                                                                                                      |   |                    | (2,379 | ) |   |   | 1,851 |   |   |   | 1,260 |   |   |   | (635 | ) |
| Unrealized loss (gain) on marketable securities                                                                                                   |   |                    | 13,673 |   |   |   | (7,760 | ) |   |   | (1,924 | ) |   |   | 3,647 |   |
| Depreciation and amortization                                                                                                                     |   |                    | 3,614  |   |   |   | 3,682 |   |   |   | 3,762 |   |   |   | 964 |   |
| Capital gain on disposal of property plant and equipment                                                                                          |   |                    | (69    | ) |   |   | (361 | ) |   |   | (112 | ) |   |   | (18 | ) |
| Loss (gain) from non - tradable financial assets (see note 21b)                                                                                   |   |                    | -      |   |   |   | (5,368 | ) |   |   | 7,734 |   |   |   | - |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes in assets and liabilities:                                                                                                                |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (Decrease) in trade receivables and other receivables                                                                                    |   |                    | (7,898 | ) |   |   | (5,034 | ) |   |   | 2,120 |   |   |   | (2,107 | ) |
| Decrease (Increase) in inventories                                                                                                                |   |                    | (9,390 | ) |   |   | 1,978 |   |   |   | (7,360 | ) |   |   | (2,505 | ) |
| Decrease in trade and other payables, and other current and non-current liabilities                                                               |   |                    | 4,523  |   |   |   | 428 |   |   |   | 1,020 |   |   |   | 1,206 |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |                    | 2,074  |   |   |   | (10,584 | ) |   |   | 6,500 |   |   |   | 552 |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| B.         Significant non-cash transactions:                                                             |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:                                                                                                               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax paid                                                                                                                                   |   |                    | 7,711  |   |   |   | 5,926 |   |   |   | 8,126 |   |   |   | 1,906 |   |

----

|  | B. | Definitions: |
|--|----|--------------|

|  | The Company | -          | G. WILLI‐FOOD INTERNATIONAL LTD. |
|--|-------------|---------------------------------------------------------|----------------------------------------|

|  | The Group | -          | The Company and its Subsidiaries, a list of which is presented in Note 5. |
|--|-----------|---------------------------------------------------------|---------------------------------------------------------------------------|

|  | Subsidiaries | - | Companies that are controlled by the Company (as defined in IAS 27) and whose accounts are consolidated with those of the Company. |
|--|--------------|---|------------------------------------------------------------------------------------------------------------------------------------|

|  | Related Parties | - | As defined in IAS 24. |
|--|-----------------|---|-----------------------|

|  | NIS | - | New Israeli Shekel. |
|--|-----|---|---------------------|

|  | CPI | - | The Israeli consumer price index. |
|--|-----|---|-----------------------------------|

|  | US Dollars or $ | - | The U.S. dollar. |
|--|-----------------|---|------------------|

|  | Euro | - | The United European currency. |
|--|------|---|-------------------------------|

|  | A. | Applying international accounting standards (IFRS): |
|--|----|-----------------------------------------------------|

----

|  | B. | Format for presentation of Statement of Financial Position: |
|--|----|-------------------------------------------------------------|

|  | C. | Format for analysis recognized in Income Statement: |
|--|----|-----------------------------------------------------|

|  | (1) | Format for analysis of expenses recognized in Income statement: |
|--|-----|-----------------------------------------------------------------|

|  | D. | Basis of preparation: |
|--|----|-----------------------|

|  | E. | Foreign currencies: |
|--|----|---------------------|

|  | (1) | Translation of foreign currency transactions |
|--|-----|----------------------------------------------|

|  | (2) | Recognition of exchange differences |
|--|-----|-------------------------------------|

----

|  | E. | Foreign currencies: (Cont.) |
|--|----|-----------------------------|

|  | F. | Cash and cash equivalents: |
|--|----|----------------------------|

|  | H. | Goodwill: |
|--|----|-----------|

----

|  | I. | Property, plant and equipment: |
|--|----|--------------------------------|

|                           | Useful life (Years) |   | %      |         |
|--------------------------------|---------------------|--------|--------|--------------|
|                           |                |   |   |         |
| Land                           | 50                  |   | 2      |         |
| Construction                   | 25                  |   | 4      |         |
| Motor vehicles                 | 5                   |   | 15-20  | (Mainly 20%) |
| Office furniture and equipment | 6                   |   | 6-15   | (Mainly 15%) |
| Computers                      | 3                   |   | 20-33  | (Mainly 33%) |
| Machinery and equipment        | 10                  |   | 10     |         |

|  | J. | Inventories: |
|--|----|--------------|

----

|  | K. | Financial assets: |
|--|----|-------------------|

|  | (1) | Accounting treatment through December 31, 2017: |
|--|-----|-------------------------------------------------|

|  | (1.1) | General |
|--|-------|---------|

|  | · | Financial assets ‘at fair value through profit or loss’ (FVTPL) |
|--|--------|-----------------------------------------------------------------------------|

|  | · | Loans and receivables |
|--|--------|-----------------------|

|  | (1.2) | Financial assets at FVTPL |
|--|-------|---------------------------|

|  | · | It has been acquired principally for the purpose of selling in the near future; or |
|--|--------|------------------------------------------------------------------------------------|

|  | · | it is a part of an identified portfolio of financial instruments that the Group manages together and has a recent actual pattern of short-term profit-taking; or |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | It is a derivative that is not designated and effective as a hedging instrument. |
|--|--------|----------------------------------------------------------------------------------|

|  | (1.3) | Loans and receivables |
|--|-------|-----------------------|

----

|  | K. | Financial assets: (Cont.) |
|--|----|---------------------------|

|  | (1) | Accounting treatment through December 31, 2017: (Cont.) |
|--|-----|---------------------------------------------------------|

|  | (1.4) | Impairment of financial assets |
|--|-------|--------------------------------|

|  | · | Significant financial difficulties of the borrower; |
|--|--------|-----------------------------------------------------|

|  | · | Default on current principal or interest payments; |
|--|--------|----------------------------------------------------|

|  | · | Probability that the borrower will enter bankruptcy or financial reorganization; |
|--|--------|----------------------------------------------------------------------------------|

----

|  | K. | Financial assets: (Cont.) |
|--|----|---------------------------|

|  | (2) | Accounting treatment through December 31, 2018: |
|--|-----|-------------------------------------------------|

|  | (2.1) | General |
|--|-------|---------|

|  | · | Financial assets at fair value through profit or loss; and |
|--|--------|------------------------------------------------------------|

|  | · | Debt instruments at amortized cost. |
|--|--------|-------------------------------------|

|  | (2.2) | Financial assets at fair value through profit or loss: |
|--|-------|--------------------------------------------------------|

|  | (2.3) | Debt instruments at amortized cost |
|--|-------|------------------------------------|

|  | (2.4) | Impairment of financial assets: |
|--|-------|---------------------------------|

----

|  | K. | Financial assets: (Cont.) |
|--|----|---------------------------|

|  | (2) | Accounting treatment through December 31, 2018: (Cont.) |
|--|-----|---------------------------------------------------------|

|  | (2.4) | Impairment of financial assets: (Cont.) |
|--|-------|-----------------------------------------|

|  | · | Internal and external credit ratings; |
|--|--------|---------------------------------------|

|  | · | Significant changes in external market indicators of credit risk in respect of a particular financial instrument; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | Existing or forecast adverse changes in business, financial or economic conditions or in the regulatory, economic or technological environment that are expected to cause a significant change in a borrower’s ability to meet its                        debt obligations, such as an actual or expected increase in interest rates or an actual or expected significant increase in unemployment rates. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Existing or forecast significant change in the borrower’s operating results; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | Significant increase of the credit risks of other financial instruments of the same borrower; |
|--|--------|-----------------------------------------------------------------------------------------------|

----

|  | K. | Financial assets: (Cont.) |
|--|----|---------------------------|

|  | (2) | Accounting treatment through December 31, 2018: (Cont.) |
|--|-----|---------------------------------------------------------|

|  | (2.4) | Impairment of financial assets: (Cont.) |
|--|-------|-----------------------------------------|

|  | L. | Financial liabilities and equity instruments issued by the Group: |
|--|----|-------------------------------------------------------------------|

|  | (1) | Classification as a financial liability or as an equity instrument |
|--|-----|--------------------------------------------------------------------|

|  | (2) | Equity instruments |
|--|-----|--------------------|

|  | (3) | Financial liabilities |
|--|-----|-----------------------|

|  | · | Financial liabilities at fair value through profit or loss. |
|--|--------|-------------------------------------------------------------|

|  | · | Financial liabilities at amortized cost. |
|--|--------|------------------------------------------|

|  | · | It was incurred principally for the purpose of selling or repurchasing it in the near term; or |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument). |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------|

----

|  | L. | Financial liabilities and equity instruments issued by the Group: (Cont.) |
|--|----|---------------------------------------------------------------------------|

|  | (3) | Financial liabilities (Cont.) |
|--|-----|-------------------------------|

|  | · | Such designation eliminates or significantly reduces measurement or recognition inconsistency that would have otherwise arisen had it not been for this designation; or |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | The financial liability is part of a group of financial liabilities or financial assets and financial liabilities and is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk                        management or investment strategy of the Group, and information about the group is provided internally on that basis to the Group’s key management personnel; or |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | It is part of a contract containing one or more embedded derivatives and the Group may designate the entire hybrid contract (asset or liability) as at fair value through profit or loss. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | Treasury shares: |
|--|-----|------------------|

|  | M. | Derivative financial instruments |
|--|----|----------------------------------|

|  | N. | Revenue recognition: |
|--|----|----------------------|

----

|  | N. | Revenue recognition: (Cont.) |
|--|----|------------------------------|

|  | (1) | Revenue from sale of goods |
|--|-----|----------------------------|

|  | · | The Group transferred to the buyer the significant risks and rewards of ownership of the goods; |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the amount of revenue can be reliably measured, |
|--|--------|-------------------------------------------------|

|  | · | it is probable that future economic benefits will flow to the Group: and |
|--|--------|--------------------------------------------------------------------------|

|  | · | The costs incurred or to be incurred in respect of the transaction can be measured reliably; |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | Revenue from the sale of goods are recognized on the date on which they are delivered and legal ownership is transferred. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Interest revenue |
|--|-----|------------------|

|  | (3) | Dividend revenue |
|--|-----|------------------|

----

|  | N. | Revenue recognition: (Cont.) |
|--|----|------------------------------|

|  | O. | Leasing: |
|--|----|----------|

|  | (1) | General: |
|--|-----|----------|

|  | (2) | Lease of land and vehicles by the Group |
|--|-----|-----------------------------------------|

----

|  | O. | Leasing: (Cont.) |
|--|----|------------------|

|  | P. | Provisions: |
|--|----|-------------|

|  | Q. | Taxation: |
|--|----|-----------|

|  | (1) | Current tax |
|--|-----|-------------|

|  | (2) | Deferred tax |
|--|-----|--------------|

----

|  | Q. | Taxation: (Cont.) |
|--|----|-------------------|

|  | (2) | Deferred tax (Cont.) |
|--|-----|----------------------|

|  | R. | Employee benefits: |
|--|----|--------------------|

|  | (1) | Post-Employment Benefits |
|--|-----|--------------------------|

----

|  | R. | Employee benefits: (Cont.) |
|--|----|----------------------------|

|  | (1) | Post-Employment Benefits (Cont.) |
|--|-----|----------------------------------|

|  | (2) | Short term employee benefits |
|--|-----|------------------------------|

|  | S. | Earnings (loss) per share: |
|--|----|----------------------------|

----

|  | T. | Exchange Rates and Linkage Basis |
|--|----|----------------------------------|

|  | (1) | Balances in foreign currency or linked thereto are included in the financial statements based on the representative exchange rates, as published by the Bank of Israel that were prevailing at the balance sheet date. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Following are the changes in the representative exchange rate of the US dollars vis-a-vis the NIS and in the Israeli CPI: |
|--|-----|---------------------------------------------------------------------------------------------------------------------------|

|                            |   | Representative exchange rate |   |   | Representative exchange rate |   |   | CPI “in     |   |
|---------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|--------|-------------------|--------|
|                            |   | of the Euro                  |   |   | of the dollar                |   |   | respect of” |   |
|                            |   | (NIS per €1)           |   |   | (NIS per $1)                 |   |   | (in points)       |   |
| As of:                          |   |                         |   |   |                         |   |   |              |   |
| December 31, 2018               |   |                         | 4.29   |   |                         |   | 3.75   |              |   |   | 101.2 |   |
| December 31, 2017               |   |                         | 4.15   |   |                         |   | 3.47   |              |   |   | 100.4 |   |
| December 31, 2016               |   |                         | 4.04   |   |                         |   | 3.84   |              |   |   | 100.0 |   |
|                            |   |                         |   |   |                         |   |   |              |   |   |   |   |
| Increase (decrease) during the: |   | %                            |   |   | %                            |   |   | %                 |   |
| Year ended:                     |   |                         |   |   |                         |   |   |              |   |   |   |   |
| December 31, 2018               |   |                         | 3.37   |   |                         |   | 8.07   |              |   |   | 0.80 |   |
| December 31, 2017               |   |                         | 2.72   |   |                         |   | (9.64  | )                 |   |   | 0.40 |   |
| December 31, 2016               |   |                         | (4.78  | )      |                         |   | (1.46  | )                 |   |   | (0.2 | ) |

|  | U. | New Financial reporting standards, interpretations published and amendments to existing standards: |
|--|----|----------------------------------------------------------------------------------------------------|

----

|  | U. | New Financial reporting standards, interpretations published and amendments to existing standards: (Cont.) |
|--|----|------------------------------------------------------------------------------------------------------------|

|  | a. | The will not reassess whether the contract is a lease or includes a lease as of the application date. Therefore, agreements that are currently accounted for as operating leases shall be accounted for in accordance with the                        provisions of the new standard, whereas the accounting treatment of agreements previously accounted for as service contracts shall not change. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | The Group expects to use a single discount rate for a portfolio of leases with similar characteristics. |
|--|----|---------------------------------------------------------------------------------------------------------|

|  | c. | The Group expects that it will not apply the provisions of the standard to leases whose term ends within 12 months from the date of first-time application. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | The Group expects that it will not include direct initial costs when measuring the right of use asset upon first-time application. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------|

| The leased asset |   | Right of use asset |   |   | Lease liability |   |
|------------------|--------|--------------------|--------|--------|-----------------|--------|
|             |   | NIS in thousands   |   |
| Vehicles         |   |               | 1,675  |   |            |   | (1,675 | ) |
| Total            |   |               | 1,675  |   |            |   | (1,675 | ) |

|  The leased asset |   | Decrease in lease expenses pursuant to IAS 17 |   |   | Increase in depreciation expenses pursuant to IFRS 16 |   |   | Total increase in income from operating activities |   |   | Increase in finance expenses pursuant to IFRS 16 |   |   | Decrease in tax expenses pursuant to IFRS 16 |   |   | Total decrease in income for the year |   |
|------------------------|--------|-----------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|---------------------------------------|--------|
|                   |   | NIS in thousands                              |   |   |                                                  |   |
| Vehicles               |   |                                          | (808   | )      |                                                  |   | 780    |                                               |   |   | 28                                               |   |   |                                         | 44     |   |                                  |   | 4 |   |   |   | (12 | ) |
| Total                  |   |                                          | (808   | )      |                                                  |   | 780    |                                               |   |   | 28                                               |   |   |                                         | 44     |   |                                  |   | 4 |   |   |   | (12 | ) |

----

|  | A. | General: |
|--|----|----------|

----

|  | B. | Significant judgments in applying accounting policies: |
|--|----|--------------------------------------------------------|

----

|  | A. | Cash and cash equivalents - composition: |
|--|----|------------------------------------------|

|                     |   | December 31, |    |
|--------------------------|--------|--------------|---------|
|                     |   | 2 0 1 8      |    |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                     |   | NIS          |    |   | NIS |   |   | US Dollars |   |
|                     |   |         |    |   |   |   |   |   |   |
| Cash in bank             |   |         | 54,699  |   |   |   | 12,962 |   |   |   | 14,594 |   |
| Short-term bank deposits |   |         | 79,588  |   |   |   | 100,100 |   |   |   | 21,235 |   |
|                     |   |         | 134,287 |   |   |   | 113,062 |   |   |   | 35,829 |   |

|  | B. | Financial assets at fair value through profit or loss: |
|--|----|--------------------------------------------------------|

|                                                                   |   | December 31, |    |
|------------------------------------------------------------------------|--------|--------------|---------|
|                                                                   |   | 2 0 1 8      |    |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                                   |   | NIS          |    |   | NIS |   |   | US Dollars |   |
| Financial assets carried at fair value through profit or loss (FVTPL): |   |         |    |   |   |   |   |   |   |
| Shares                                                                 |   |         | 32,931  |   |   |   | 44,494 |   |   |   | 8,786 |   |
| Governmental loan and other bonds                                      |   |         | 98,187  |   |   |   | 87,905 |   |   |   | 26,197 |   |
| Certificate of participation in mutual fund                            |   |         | 6,786   |   |   |   | 11,115 |   |   |   | 1,811 |   |
|                                                                   |   |         | 137,904 |   |   |   | 143,514 |   |   |   | 36,794 |   |

|  | C. | Trade receivables: |
|--|----|--------------------|

|  | (1) | Composition |
|--|-----|-------------|

|  |
|--|

|                                                        |   | December 31, |    |
|-------------------------------------------------------------|--------|--------------|---------|
|                                                        |   | 2 0 1 8      |    |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                        |   | NIS          |    |   | NIS |   |   | US Dollars |   |
|                                                        |   |         |    |   |   |   |   |   |   |
| Trade receivables(*)                                        |   |         | 100,387 |   |   |   | 88,324 |   |   |   | 26,784 |   |
| Less – provisions for impairment of trade recivables. |   |         | 2,370   |   |   |   | 2,381 |   |   |   | 632 |   |
|                                                        |   |         | 98,017  |   |   |   | 85,943 |   |   |   | 26,152 |   |

|  | (*) | Less provision for returns in the sum of NIS 2,273 (as of December 31, 2017 - NIS 1,841). |
|--|-----|-------------------------------------------------------------------------------------------|

----

|  | C. | Trade receivables: (Cont.) |
|--|----|----------------------------|

|  | (2) | Changes in the allowance for doubtful debts: |
|--|-----|----------------------------------------------|

|                               |   | December 31, |   |
|------------------------------------|--------|--------------|--------|
|                               |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                               |   | NIS          |   |   | NIS |   |   | US Dollars |   |
|                               |   |         |   |   |   |   |   |   |   |
| Balance at beginning of the year   |   |         | 2,381  |   |   |   | 2,155 |   |   |   | 635 |   |
| Change in allowance doubtful debts |   |         | (11    | ) |   |   | 226 |   |   |   | (3 | ) |
| Balance at end of the year         |   |         | 2,370  |   |   |   | 2,381 |   |   |   | 632 |   |

|  | D. | Other receivables and prepaid expenses: |
|--|----|----------------------------------------------|

|                                                                                 |   | December 31, |   |
|--------------------------------------------------------------------------------------|--------|--------------|--------|
|                                                                                 |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                                                 |   | NIS          |   |   | NIS |   |   | US Dollars |   |
|                                                                                 |   |         |   |   |   |   |   |   |   |
| Prepaid expenses                                                                     |   |         | 730    |   |   |   | 688 |   |   |   | 195 |   |
| Income receivables                                                                   |   |         | 429    |   |   |   | - |   |   |   | 114 |   |
| Advances to suppliers                                                                |   |         | 1,051  |   |   |   | 339 |   |   |   | 280 |   |
| Government authorities                                                               |   |         | -      |   |   |   | 953 |   |   |   | - |   |
| Receivables in respect of investment in a non-current financial asset (See note 21b) |   |         | -      |   |   |   | 3,970 |   |   |   | - |   |
| Others                                                                               |   |         | 1,534  |   |   |   | 46 |   |   |   | 410 |   |
|                                                                                 |   |         | 3,744  |   |   |   | 5,996 |   |   |   | 999 |   |

|  | E. | Inventories |
|--|----|-------------|

|                   |   | December 31, |   |
|------------------------|--------|--------------|--------|
|                   |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                   |   | NIS          |   |   | NIS |   |   | US Dollars |   |
|                   |   |         |   |   |   |   |   |   |   |
| Finished products      |   |         | 44,183 |   |   |   | 32,690 |   |   |   | 11,789 |   |
| Merchandise in transit |   |         | 5,106  |   |   |   | 7,209 |   |   |   | 1,362 |   |
|                   |   |         | 49,289 |   |   |   | 39,899 |   |   |   | 13,151 |   |

| Subsidiary                                  |   | Location |   | Jurisdiction of Organization |   | Company's Ownership Interest |   |
|---------------------------------------------|--------|----------|--------|------------------------------|--------|------------------------------|--------|
|                                        |   |     |   |               |   | December 31,                 |   |
|                                        |   |     |   |                         |   | 2 0 1 8                      |   |   | 2 0 1 7 |   |
|                                        |   |     |   |                         |   |                         |   |   |   |   |
| Gold Frost Ltd. ("Goldfrost")               |   | Israel   |   | Israel                       |   |                         | 100.00 | % |   |   | 100.00 | % |
| W.F.D. (Import, Marketing and Trading) Ltd. |   | Israel   |   | Israel                       |   |                         | 99.00  | % |   |   | 99.00 | % |
| W.Capital Ltd. (Former: B.H.W.F.I Ltd.)     |   | Israel   |   | Israel                       |   |                         | 100.00 | % |   |   | 100.00 | % |

----

|                                                          |   |     |   |   | Machinery |   |   |     |   |   | Computers |   |   |      |   |   |   |   |
|---------------------------------------------------------------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|
|                                                          |   | Land and |   |   | and       |   |   | Motor    |   |   | and       |   |   | Office    |   |   |   |   |
|                                                          |   | Building |   |   | equipment |   |   | Vehicles |   |   | equipment |   |   | Furniture |   |   | Total  |   |
| Consolidated Cost:                                            |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |
| Balance -January 1, 2017                                      |   |     | 54,477 |   |      |   | 4,388  |     |   |   | 12,392    |   |   |      | 4,584  |   |   |   | 1,363 |   |   |   | 77,204 |   |
| Changes during 2017:                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Additions                                                     |   |     | 10     |   |      |   | 705    |     |   |   | 1,419     |   |   |      | 196    |   |   |   | 320 |   |   |   | 2,650 |   |
| Dispositions                                                  |   |     | -      |   |      |   | -      |     |   |   | (1,256    | )      |   |      | -      |   |   |   | - |   |   |   | (1,256 | ) |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2017                                   |   |     | 54,487 |   |      |   | 5,093  |     |   |   | 12,555    |   |   |      | 4,780  |   |   |   | 1,683 |   |   |   | 78,598 |   |
| Changes during 2018:                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Additions                                                     |   |     | 592    |   |      |   | 407    |     |   |   | 815       |   |   |      | 264    |   |   |   | 65 |   |   |   | 2,143 |   |
| Dispositions                                                  |   |     | -      |   |      |   | -      |     |   |   | (1,130    | )      |   |      | -      |   |   |   | - |   |   |   | (1,130 | ) |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2018                                   |   |     | 55,079 |   |      |   | 5,500  |     |   |   | 12,240    |   |   |      | 5,044  |   |   |   | 1,748 |   |   |   | 79,611 |   |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation:                                     |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Balance - January 1, 2017                                     |   |     | 17,038 |   |      |   | 2,850  |     |   |   | 10,582    |   |   |      | 3,649  |   |   |   | 844 |   |   |   | 34,963 |   |
| Changes during 2017:                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Additions                                                     |   |     | 1,663  |   |      |   | 894    |     |   |   | 821       |   |   |      | 260    |   |   |   | 44 |   |   |   | 3,682 |   |
| Dispositions                                                  |   |     | -      |   |      |   | -      |     |   |   | (1,256    | )      |   |      | -      |   |   |   | - |   |   |   | (1,256 | ) |
| Balance - December 31, 2017                                   |   |     | 18,701 |   |      |   | 3,744  |     |   |   | 10,147    |   |   |      | 3,909  |   |   |   | 888 |   |   |   | 37,389 |   |
| Changes during 2018:                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Additions                                                     |   |     | 1,826  |   |      |   | 404    |     |   |   | 1,079     |   |   |      | 241    |   |   |   | 64 |   |   |   | 3,614 |   |
| Dispositions                                                  |   |     | -      |   |      |   | -      |     |   |   | (784      | )      |   |      | -      |   |   |   | - |   |   |   | (784 | ) |
| Balance  - December 31, 2018                             |   |     | 20,527 |   |      |   | 4,148  |     |   |   | 10,442    |   |   |      | 4,150  |   |   |   | 952 |   |   |   | 40,219 |   |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Net book value:                                               |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| December 31, 2018                                             |   |     | 34,552 |   |      |   | 1,352  |     |   |   | 1,798     |   |   |      | 894    |   |   |   | 796 |   |   |   | 39,392 |   |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| December 31, 2017                                             |   |     | 35,786 |   |      |   | 1,349  |     |   |   | 2,408     |   |   |      | 871    |   |   |   | 795 |   |   |   | 41,209 |   |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Net book value                        (Dollars in thousands): |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| December 31, 2018                                             |   |     | 9,219  |   |      |   | 361    |     |   |   | 480       |   |   |      | 239    |   |   |   | 212 |   |   |   | 10,510 |   |
|                                                          |   |     |   |   |      |   |   |     |   |   |      |   |   |      |   |   |   |   |   |   |   |   |   |   |
| December 31, 2017                                             |   |     | 9,548  |   |      |   | 360    |     |   |   | 642       |   |   |      | 232    |   |   |   | 212 |   |   |   | 10,994 |   |

----

|  | A. | Trade payables |
|--|----|----------------|

|            |   | December 31, |   |
|-----------------|--------|--------------|--------|
|            |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|            |   | NIS          |   |   | NIS |   |   | US Dollars |   |
|            |   |         |   |   |   |   |   |   |   |
| Open accounts   |   |         | 14,661 |   |   |   | 12,446 |   |   |   | 3,912 |   |
| Checks payables |   |         | 1,578  |   |   |   | 354 |   |   |   | 421 |   |
|            |   |         | 16,239 |   |   |   | 12,800 |   |   |   | 4,333 |   |

|  | B. | Other payables and accrued expenses |
|--|----|-------------------------------------|

|              |   | December 31, |   |
|-------------------|--------|--------------|--------|
|              |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|              |   | NIS          |   |   | NIS |   |   | US Dollars |   |
|              |   |         |   |   |   |   |   |   |   |
| Customer advances |   |         | 1,267  |   |   |   | 1,223 |   |   |   | 338 |   |
| Accrued expenses  |   |         | 4,226  |   |   |   | 3,985 |   |   |   | 1,128 |   |
| Others payables   |   |         | 389    |   |   |   | 38 |   |   |   | 103 |   |
|              |   |         | 5,882  |   |   |   | 5,246 |   |   |   | 1,569 |   |

|  | A. | Defined benefit plans - General: |
|--|----|----------------------------------|

----

| NOTE 9 - |  EMPLOYEE BENEFITS (Cont.) |
|----------|---------------------------------|

|  | A. | Defined benefit plans - General: (Cont.) |
|--|----|------------------------------------------|

|                               |   | Valuation at |   |
|------------------------------------|--------|--------------|--------|
|                               |   | 2 0 1 8      |   |   | 2 0 1 7 |   |
|                               |   | %            |   |   | % |   |
|                               |   |         |   |   |   |   |
| Discount rate                      |   |         | 3.30   |   |   |   | 2.55 |   |
| Expected return on the plan assets |   |         | 3.30   |   |   |   | 2.55 |   |
| Rate of increase in compensation   |   |         | 4      |   |   |   | 4 |   |
|                               |   |         |   |   |   |   |   |   |
| Expected rate of termination:      |   |         |   |   |   |   |   |   |
| 0-1 years                          |   |         | 35     |   |   |   | 35 |   |
| 1-2 years                          |   |         | 30     |   |   |   | 30 |   |
| 2-3 years                          |   |         | 20     |   |   |   | 20 |   |
| 3-4 years                          |   |         | 15     |   |   |   | 15 |   |
| 4-5 years                          |   |         | 10     |   |   |   | 10 |   |
| 5 years and more                   |   |         | 7.5    |   |   |   | 7.5 |   |

|  | B. | Composition: |
|--|----|--------------|

|                                 |   | December 31, |   |
|--------------------------------------|--------|--------------|--------|
|                                 |   | 2 0 1 8      |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                 |   | NIS          |   |   | NIS |   |   | US Dollars |   |
| Post-Employment Benefits:            |   |         |   |   |   |   |   |   |   |
| Benefits to retirees                 |   |         | 836    |   |   |   | 1,148 |   |   |   | 223 |   |
|                                 |   |         |   |   |   |   |   |   |   |   |   |   |
| Short term employee benefits:        |   |         |   |   |   |   |   |   |   |   |   |   |
| Accrued payroll and related expenses |   |         | 1,954  |   |   |   | 1,575 |   |   |   | 521 |   |
| Short term absence compensation      |   |         | 623    |   |   |   | 572 |   |   |   | 167 |   |
|                                 |   |         | 2,577  |   |   |   | 2,147 |   |   |   | 688 |   |

----

|  | C. | Defined benefit plans: |
|--|----|------------------------|

|                                                          |   | Year ended December 31, |   |
|---------------------------------------------------------------|--------|-------------------------|--------|
|                                                          |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                          |   | NIS                     |   |   | NIS |   |   | US Dollars |   |
|                                                          |   |                    |   |   |   |   |   |   |   |
| Opening defined benefit obligation                            |   |                    | 5,133  |   |   |   | 4,748 |   |   |   | 1,370 |   |
| Current service cost                                          |   |                    | 481    |   |   |   | 768 |   |   |   | 128 |   |
| Interest cost                                                 |   |                    | 118    |   |   |   | 162 |   |   |   | 31 |   |
| Actuarial losses arising from experience adjustments          |   |                    | (221   | ) |   |   | 370 |   |   |   | (59 | ) |
| Actuarial gains arising from changes in financial assumptions |   |                    | (614   | ) |   |   | 12 |   |   |   | (164 | ) |
| Benefits paid                                                 |   |                    | (581   | ) |   |   | (927 | ) |   |   | (155 | ) |
| Closing defined benefit obligation                            |   |                    | 4,316  |   |   |   | 5,133 |   |   |   | 1,151 |   |

|                                                                    |   | Year ended December 31, |   |
|-------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                    |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                                    |   | NIS                     |   |   | NIS |   |   | US Dollars |   |
|                                                                    |   |                    |   |   |   |   |   |   |   |
| Opening defined benefit assets                                          |   |                    | 3,985  |   |   |   | 3,899 |   |   |   | 1,063 |   |
| Expected return on the plan assets                                      |   |                    | 84     |   |   |   | 139 |   |   |   | 22 |   |
| Changes in financial assumptions                                        |   |                    | (505   | ) |   |   | (63 | ) |   |   | (135 | ) |
| Employer contribution                                                   |   |                    | 421    |   |   |   | 803 |   |   |   | 112 |   |
| Benefits paid                                                           |   |                    | (495   | ) |   |   | (814 | ) |   |   | (131 | ) |
| Interest losses on severance payment allocated to remuneration benefits |   |                    | (10    | ) |   |   | 21 |   |   |   | (3 | ) |
| Closing defined benefit assets                                          |   |                    | 3,480  |   |   |   | 3,985 |   |   |   | 928 |   |

|                                                                   |   | Year ended December 31, |   |
|------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                   |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                                   |   | NIS                     |   |   | NIS |   |   | US Dollars |   |
|                                                                   |   |                    |   |   |   |   |   |   |   |
| Present value of funded liability                                      |   |                    | 4,316  |   |   |   | 5,133 |   |   |   | 1,151 |   |
| Fair value of plan assets - accumulated deposit in executive insurance |   |                    | 3,480  |   |   |   | 3,985 |   |   |   | 928 |   |
| Net liability deriving from defined benefit obligation                 |   |                    | 836    |   |   |   | 1,148 |   |   |   | 223 |   |

----

|  | C. | Defined benefit plans: (Cont.) |
|--|----|--------------------------------|

|                                                             |   | Year ended December 31, |   |
|------------------------------------------------------------------|--------|-------------------------|--------|
|                                                             |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                             |   | NIS                     |   |   | NIS |   |   | US Dollars |   |
|                                                             |   |                    |   |   |   |   |   |   |   |
| Payroll, payroll and social benefits                             |   |                    | 1,954  |   |   |   | 1,575 |   |   |   | 521 |   |
| Entitlement to compensation for short-term absences and recovery |   |                    | 623    |   |   |   | 572 |   |   |   | 167 |   |
|                                                             |   |                    | 2,577  |   |   |   | 2,147 |   |   |   | 688 |   |

|  | D. | Short term employee benefits: |
|--|----|-------------------------------|

|  | (1) | Paid Annual Leave |
|--|-----|-------------------|

|  | (2) | Paid Sick Leave |
|--|-----|-----------------|

----

|  | A. | Composition: |
|--|----|--------------|

|                            |   | Year ended December 31 |   |
|---------------------------------|--------|------------------------|--------|
|                            |   | 2 0 1 8                |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                            |   | NIS                    |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
| Current taxes:                  |   |                   |   |   |   |   |   |   |   |   |   |   |
| Current taxes                   |   |                   | 10,069 |   |   |   | 3,918 |   |   |   | 4,067 |   |   |   | 2,686 |   |
| Taxes in respect of prior years |   |                   | 160    |   |   |   | 141 |   |   |   | - |   |   |   | 43 |   |
|                            |   |                   | 10,229 |   |   |   | 4,059 |   |   |   | 4,067 |   |   |   | 2,729 |   |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred taxes                  |   |                   | (2,379 | ) |   |   | 1,851 |   |   |   | 1,260 |   |   |   | (635 | ) |
|                            |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |                   | 7,850  |   |   |   | 5,910 |   |   |   | 5,327 |   |   |   | 2,094 |   |

|  | B. | Reconciliation of the statutory tax rate to the effective tax rate: |
|--|----|---------------------------------------------------------------------|

|                                                              |   | Year ended December 31, |   |
|-------------------------------------------------------------------|--------|-------------------------|--------|
|                                                              |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                                              |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |
| Income before Income taxes                                        |   |                    | 32,817 |   |   |   | 30,933 |   |   |   | 16,179 |   |   |   | 8,756 |   |
| Statutory tax rate                                                |   |                    | 23     | % |   |   | 24 | % |   |   | 25 | % |   |   | 23 | % |
| Tax computed by statutory tax rate                                |   |                    | 7,548  |   |   |   | 7,424 |   |   |   | 4,044 |   |   |   | 2,014 |   |
|                                                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax increments (savings) due to:                                  |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-deductible expenses                                           |   |                    | 4      |   |   |   | 51 |   |   |   | 70 |   |   |   | 1 |   |
| Tax exempt Income                                                 |   |                    | (163   | ) |   |   | (343 | ) |   |   | (33 | ) |   |   | (43 | ) |
| Profit or loss for tax for which deferred taxes were not provided |   |                    | 368    |   |   |   | (1,196 | ) |   |   | 1,198 |   |   |   | 98 |   |
| Changes in tax rates                                              |   |                    | -      |   |   |   | - |   |   |   | 88 |   |   |   | - |   |
| Temporary differences for which deferred taxes were not provided  |   |                    | -      |   |   |   | (132 | ) |   |   | - |   |   |   | - |   |
| Previous year taxes                                               |   |                    | 162    |   |   |   | 141 |   |   |   | - |   |   |   | 42 |   |
| Other                                                             |   |                    | (69    | ) |   |   | (35 | ) |   |   | (40 | ) |   |   | (18 | ) |
|                                                              |   |                    | 7,850  |   |   |   | 5,910 |   |   |   | 5,327 |   |   |   | 2,094 |   |

----

|  | C. | Deferred Taxes: |
|--|----|-----------------|

|                                                          |   |    |   |   |   |   |   |     |   |   |       |   |
|---------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|----------|--------|--------|------------|--------|
|                                                          |   | January |   |   |   |   |   | December |   |   | December   |   |
|                                                          |   | 1, 2018 |   |   | Change |   |   | 31, 2018 |   |   | 31, 2018   |   |
|                                                          |   | NIS     |   |   | NIS    |   |   | NIS      |   |   | US Dollars |   |
|                                                          |   |    |   |   |   |   |   |     |   |   |       |   |
| Deferred taxes arise from the following:                      |   |    |   |   |   |   |   |     |   |   |       |   |
| Financial assets carried at fair value through profit or loss |   |    | (775   | )      |   |   | 2,776  |     |   |   | 2,001      |   |   |   | 534 |   |
| Employees benefits                                            |   |    | 395    |   |   |   | (59    | )        |   |   | 336        |   |   |   | 90 |   |
| Allowance for doubtful accounts                               |   |    | 548    |   |   |   | (3     | )        |   |   | 545        |   |   |   | 145 |   |
|                                                          |   |    | 168    |   |   |   | 2,714  |     |   |   | 2,882      |   |   |   | 769 |   |
| Carry forward tax losses                                      |   |    | 335    |   |   |   | (335   | )        |   |   | -          |   |   |   | - |   |
|                                                          |   |    | 503    |   |   |   | 2,379  |     |   |   | 2,882      |   |   |   | 769 |   |

|                                                          |   | January |   |   |   |   |   | December |   |   | December   |   |
|---------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|----------|--------|--------|------------|--------|
|                                                          |   | 1, 2017 |   |   | Change |   |   | 31, 2017 |   |   | 31, 2017   |   |
|                                                          |   | NIS     |   |   | NIS    |   |   | NIS      |   |   | US Dollars |   |
|                                                          |   |    |   |   |   |   |   |     |   |   |       |   |
| Deferred taxes arise from the following:                      |   |    |   |   |   |   |   |     |   |   |       |   |
| Financial assets carried at fair value through profit or loss |   |    | 67     |   |   |   | (842   | )        |   |   | (775       | )      |   |   | (207 | ) |
| Employees benefits                                            |   |    | 352    |   |   |   | 43     |     |   |   | 395        |   |   |   | 105 |   |
| Allowance for doubtful accounts                               |   |    | 516    |   |   |   | 32     |     |   |   | 548        |   |   |   | 146 |   |
|                                                          |   |    | 935    |   |   |   | (767   | )        |   |   | 168        |   |   |   | 44 |   |
| Carry forward tax losses                                      |   |    | 1,419  |   |   |   | (1,084 | )        |   |   | 335        |   |   |   | 89 |   |
|                                                          |   |    | 2,354  |   |   |   | (1,851 | )        |   |   | 503        |   |   |   | 133 |   |

|  | D. | Additional Information: |
|--|----|-------------------------|

|  | (1) | The tax rate applicable to the Company are as follows: in 2016 – 25%; 2017 – 24%; 2018 – 23%. |
|--|-----|-----------------------------------------------------------------------------------------------------------------|

|  | (2) | The Law for the Amendment to the Income Tax Ordinance (No. 216), 2016 was published in the official gazette in January 2016; the said law stipulated the reduction of the rate of corporate tax by 1.5% from 26.5% to 25% commencing                        tax year 2016. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | The Economic Efficiency Law (Legislative Amendments for the Achievement of Budgetary Goals for 2017 and 2018), 2016, which was published in the official gazette in December 2016, stipulated that the corporate tax rate will be                        reduced by 1% in 2017 and by 2% as from 2018 and thereafter, such that the tax rate in 2017 will be 24% and as from 2018 the tax rate will be 23%, instead of 25% in 2016. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | The Company and its subsidiaries have been issued with final tax assessments through tax year 2013. |
|--|-----|-----------------------------------------------------------------------------------------------------|

----

|  | (1) | The Company has an obligation to pay incentives to several customers that are not subject to the Food Law, 5744-2014, which came into effect on January 15, 2015. Some of those incentives are payable as a rate of total annual                        sales to those customers, and some of those incentives are payable as a rate of acquisitions in excess of an agreed upon annual volume of activities. The incentives are calculated specifically for each customer. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | On October 17, 2017, a General Meeting of the Shareholders of the company approved management services agreements pursuant to which Messrs. Yoseph Williger and Zwi Williger are to serve as active co-chairmen of the Board of                        Directors. (The said approval was granted after the management services agreements were approved by the company's Compensation Committee and Board of Directors, as required by law). The said agreements were signed between the                        Company and companies under the ownership and control of Messrs. Yoseph Williger and Zwi Williger (hereinafter – “the Management Services Agreements” “the Management Companies” and Messrs. Williger”, respectively). The main                        provisions of Management Services Agreements are described below: |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (2) | (Cont.) |
|--|-----|---------|

|  | (3) | On April 1, 1997, the parent Company and the Company entered into an agreement for the provision of management, administration, bookkeeping, secretarial and controllership services. This agreement was updated on October 2, 2017.                        Pursuant to the said agreement, the parent company shall pay the Company a monthly amount of NIS 10,000 plus VAT for the said services and for external services that are provided at the same time to the parent Company and to the                        subsidiary by the same third party, such as legal services, auditing services, etc., but excluding unique and specific services that are provided to the parent Company or to the company. This agreement will be effective for a 3-year                        period through August 21, 2020. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | Ordinary shares          |       |
|--------------------------|--------|--------------------------|------------|
|                     |   | of NIS 0.1 parvalue each |       |
|                     |   | December 31              |       |
|                     |   | 2 0 1 8                  |       |   | 2 0 1 7 |   |
|                     |   |                     |       |   |   |   |
| Authorized share capital |   |                     | 50,000,000 |   |   |   | 50,000,000 |   |
|                     |   |                     |       |   |   |   |   |   |
| Issued and outstanding   |   |                     | 13,240,913 |   |   |   | 13,240,913 |   |

----

|  | A. | Revenues: |
|--|----|-----------|

|             |   | Year ended December 31, |    |
|------------------|--------|-------------------------|---------|
|             |   | 2 0 1 8                 |    |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|             |   | NIS                     |    |   | NIS |   |   | NIS |   |   | US Dollars |   |
|             |   |                    |    |   |   |   |   |   |   |   |   |   |
| Sale of products |   |                    | 338,245 |   |   |   | 311,978 |   |   |   | 294,202 |   |   |   | 90,247 |   |

|  | B. | Cost of sales: |
|--|----|----------------|

|                          |   | Year ended December 31, |    |
|-------------------------------|--------|-------------------------|---------|
|                          |   | 2 0 1 8                 |    |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                          |   | NIS                     |    |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Purchases                     |   |                    | 240,998 |   |   |   | 222,351 |   |   |   | 220,088 |   |   |   | 64,300 |   |
| Transportation                |   |                    | 1,966   |   |   |   | 1,579 |   |   |   | 1,523 |   |   |   | 525 |   |
| Depreciation and amortization |   |                    | 2,314   |   |   |   | 2,323 |   |   |   | 2,287 |   |   |   | 617 |   |
| Maintenance                   |   |                    | 4,175   |   |   |   | 5,202 |   |   |   | 3,881 |   |   |   | 1,114 |   |
| Other costs and expenses      |   |                    | 1,910   |   |   |   | 2,062 |   |   |   | 1,278 |   |   |   | 510 |   |
|                          |   |                    | 251,363 |   |   |   | 233,517 |   |   |   | 229,057 |   |   |   | 67,066 |   |
| Change in finished goods      |   |                    | (11,331 | ) |   |   | 4,128 |   |   |   | (11,472 | ) |   |   | (3,023 | ) |
|                          |   |                    | 240,032 |   |   |   | 237,645 |   |   |   | 217,585 |   |   |   | 64,043 |   |

|  | C. | Selling expenses: |
|--|----|-------------------|

|                           |   | Year ended December 31, |   |
|--------------------------------|--------|-------------------------|--------|
|                           |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                           |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                           |   |                    |   |   |   |   |   |   |   |   |   |   |
| Salaries and related expenses  |   |                    | 15,058 |   |   |   | 14,316 |   |   |   | 12,969 |   |   |   | 4,016 |   |
| Transportation and maintenance |   |                    | 12,541 |   |   |   | 11,619 |   |   |   | 9,555 |   |   |   | 3,346 |   |
| Vehicles                       |   |                    | 3,908  |   |   |   | 3,564 |   |   |   | 3,833 |   |   |   | 1,043 |   |
| Advertising and promotion      |   |                    | 4,766  |   |   |   | 5,472 |   |   |   | 6,694 |   |   |   | 1,272 |   |
| Depreciation and amortization  |   |                    | 804    |   |   |   | 784 |   |   |   | 821 |   |   |   | 215 |   |
| Others                         |   |                    | 6,746  |   |   |   | 6,335 |   |   |   | 5,533 |   |   |   | 1,800 |   |
|                           |   |                    | 43,823 |   |   |   | 42,090 |   |   |   | 39,405 |   |   |   | 11,692 |   |

|  | D. | General and administrative expenses: |
|--|----|--------------------------------------|

|                          |   | Year ended December 31, |   |
|-------------------------------|--------|-------------------------|--------|
|                          |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                          |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                          |   |                    |   |   |   |   |   |   |   |   |   |   |
| Salaries and related expenses |   |                    | 10,442 |   |   |   | 8,922 |   |   |   | 9,126 |   |   |   | 2,786 |   |
| Office maintenance            |   |                    | 1,411  |   |   |   | 1,182 |   |   |   | 1,106 |   |   |   | 376 |   |
| Professional fees             |   |                    | 2,432  |   |   |   | 3,436 |   |   |   | 3,230 |   |   |   | 649 |   |
| Vehicles                      |   |                    | 545    |   |   |   | 713 |   |   |   | 602 |   |   |   | 145 |   |
| Depreciation and amortization |   |                    | 552    |   |   |   | 599 |   |   |   | 652 |   |   |   | 147 |   |
| Bad and doubtful debts        |   |                    | (59    | ) |   |   | 226 |   |   |   | (1,292 | ) |   |   | (16 | ) |
| Communication                 |   |                    | 60     |   |   |   | 136 |   |   |   | 116 |   |   |   | 16 |   |
| Other                         |   |                    | 1,303  |   |   |   | 625 |   |   |   | 1,037 |   |   |   | 349 |   |
|                          |   |                    | 16,686 |   |   |   | 15,839 |   |   |   | 14,577 |   |   |   | 4,452 |   |

----

|  | E. | Employees benefit costs: |
|--|----|--------------------------|

|                                         |   | Year ended December 31, |   |
|----------------------------------------------|--------|-------------------------|--------|
|                                         |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                         |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                         |   |                    |   |   |   |   |   |   |   |   |   |   |
| Payroll (without payment to related parties) |   |                    | 21,148 |   |   |   | 21,131 |   |   |   | 20,144 |   |   |   | 5,642 |   |
|                                         |   |                    | 21,148 |   |   |   | 21,131 |   |   |   | 20,144 |   |   |   | 5,642 |   |

|  | F. | Depreciation and amortization: |
|--|----|--------------------------------|

|                                      |   | Year ended December 31, |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                      |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                      |   |                    |   |   |   |   |   |   |   |   |   |   |
| Depreciation of fixed assets (see note 6) |   |                    | 3,614  |   |   |   | 3,682 |   |   |   | 3,762 |   |   |   | 964 |   |

|                                     |   | Year ended December 31, |   |
|------------------------------------------|--------|-------------------------|--------|
|                                     |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                     |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                     |   |                    |   |   |   |   |   |   |   |   |   |   |
| Capital gain on fixed assets realization |   |                    | 69     |   |   |   | 361 |   |   |   | 112 |   |   |   | 18 |   |
|                                     |   |                    | 69     |   |   |   | 361 |   |   |   | 112 |   |   |   | 18 |   |

|  | A. | Financing Income: |
|--|----|-------------------|

|                                                           |   | Year ended December 31, |    |
|----------------------------------------------------------------|--------|-------------------------|---------|
|                                                           |   | 2 0 1 8                 |    |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                                           |   | NIS                     |    |   | NIS |   |   | NIS |   |   | US Dollars |   |
| Interest Income:                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Short-term bank deposits                                       |   |                    | 357     |   |   |   | 30 |   |   |   | 333 |   |   |   | 95 |   |
| Interest Income of debentures held for trading                 |   |                    | 4,603   |   |   |   | 3,274 |   |   |   | 1,791 |   |   |   | 1,228 |   |
| Other                                                          |   |                    | 27      |   |   |   | 16 |   |   |   | (11 | ) |   |   | 7 |   |
| Total interest Income                                          |   |                    | 4,987   |   |   |   | 3,320 |   |   |   | 2,113 |   |   |   | 1,330 |   |
| Other:                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes in fair value of financial assets at fair values       |   |                    | (13,697 | ) |   |   | 7,760 |   |   |   | 1,924 |   |   |   | (3,654 | ) |
| Gain (loss) from non-tradable financial assets (see note 21b). |   |                    | -       |   |   |   | 5,368 |   |   |   | (7,734 | ) |   |   | - |   |
| Dividends                                                      |   |                    | 1,498   |   |   |   | 1,489 |   |   |   | 272 |   |   |   | 400 |   |
| Total financing Income                                         |   |                    | (7,212  | ) |   |   | 17,937 |   |   |   | (3,425 | ) |   |   | (1,924 | ) |

----

|  | B. | Financing expenses: |
|--|----|---------------------|

|                                  |   | Year ended December 31, |   |
|---------------------------------------|--------|-------------------------|--------|
|                                  |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                  |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
| Other:                                |   |                    |   |   |   |   |   |   |   |   |   |   |
| Foreign currency differences          |   |                    | (2,867 | ) |   |   | 2,708 |   |   |   | 2,222 |   |   |   | (768 | ) |
| Bank fees                             |   |                    | 499    |   |   |   | 599 |   |   |   | 449 |   |   |   | 134 |   |
| Management fees for investment houses |   |                    | 112    |   |   |   | 462 |   |   |   | 300 |   |   |   | 32 |   |
| Other                                 |   |                    | -      |   |   |   | - |   |   |   | 172 |   |   |   | - |   |
| Total financing costs                 |   |                    | (2,256 | ) |   |   | 3,769 |   |   |   | 3,143 |   |   |   | (602 | ) |

|                                                                                                      |   | Year ended December 31, |       |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                                      |   | 2 0 1 8                 |       |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                                                                                      |   | NIS                     |       |   | NIS |   |   | NIS |   |   | US Dollars |   |
| A.        Basic earnings per share:                               |   |                    |       |   |   |   |   |   |   |   |   |   |
| Earnings used in the calculation of basic earnings per share to equity holders of the parent              |   |                    | 24,967     |   |   |   | 25,023 |   |   |   | 10,852 |   |   |   | 6,662 |   |
|                                                                                                      |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| B.        Diluted earnings per share:                             |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                      |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Profit used to compute diluted earnings per share from continuing operations                              |   |                    | 24,967     |   |   |   | 25,023 |   |   |   | 10,852 |   |   |   | 6,662 |   |
|                                                                                                      |   |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares used in computing basic earnings per share from continuing operations   |   |                    | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |
| Weighted average number of shares used in computing diluted earnings per share from continuing operations |   |                    | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |   |   | 13,240,913 |   |

|  | A. | Significant accounting policies: |
|--|----|----------------------------------|

----

|  | B. | Categories of financial instruments: |
|--|----|--------------------------------------|

|                                                  |   | As of December 31, |    |
|-------------------------------------------------------|--------|--------------------|---------|
|                                                  |   | 2 0 1 8            |    |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                  |   | NIS                |    |   | NIS |   |   | US Dollars |   |
| Financial assets                                      |   |               |    |   |   |   |   |   |   |
| Financial assets at fair value through profit or loss |   |               | 137,904 |   |   |   | 143,514 |   |   |   | 36,794 |   |
| Cash and cash equivalents                             |   |               | 134,287 |   |   |   | 113,062 |   |   |   | 35,829 |   |
|                                                  |   |               |    |   |   |   |   |   |   |   |   |   |
|                                                  |   |               | 272,191 |   |   |   | 256,576 |   |   |   | 72,623 |   |

|  | C. | Objectives of managing financial risks: |
|--|----|-----------------------------------------|

|  | D. | Market risk: |
|--|----|--------------|

----

|  | E. | Other price risks: |
|--|----|--------------------|

|           |   | 2 0 1 8 |   |   | 2 0 1 7 |   |
|----------------|--------|---------|--------|--------|---------|--------|
|           |   | NIS     |   |   | NIS     |   |
|           |   |    |   |   |    |   |
| Profit or loss |   |    | 13,791 |   |    |   | 14,351 |   |

|  | F. | Credit risk: |
|--|----|--------------|

|  | G. | Liquidity risk management: |
|--|----|----------------------------|

----

|  | G. | Liquidity risk management: (Cont.): |
|--|----|-------------------------------------|

|                                             |   | 1 month |    |   | 2-3 Months |   |   | 4-12 Months |   |   | 1-5 Years |   |   | More than5 Years |   |   | Total  |   |
|--------------------------------------------------|--------|---------|---------|--------|------------|--------|--------|-------------|--------|--------|-----------|--------|--------|------------------|--------|--------|--------|--------|
|                                             |   | NIS     |    |   | NIS        |   |   | NIS         |   |   | NIS       |   |   | NIS              |   |   | NIS    |   |
|                                             |   |    |    |   |       |   |   |        |   |   |      |   |   |             |   |   |   |   |
| 2018                                             |   |    |    |   |       |   |   |        |   |   |      |   |   |             |   |   |   |   |
| Financial instruments which bear interest        |   |    | 10      |   |       |   | 371    |        |   |   | 4,332     |   |   |             | 27,990 |   |   |   | 65,484 |   |   |   | 98,187 |   |
| Financial instruments which do not bear interest |   |    | 174,004 |   |       |   | -      |        |   |   | -         |   |   |             | -      |   |   |   | - |   |   |   | 174,004 |   |
|                                             |   |    | 174,014 |   |       |   | 371    |        |   |   | 4,332     |   |   |             | 27,990 |   |   |   | 65,484 |   |   |   | 272,191 |   |
|                                             |   |    |    |   |       |   |   |        |   |   |      |   |   |             |   |   |   |   |   |   |   |   |   |   |
| 2017                                             |   |    |    |   |       |   |   |        |   |   |      |   |   |             |   |   |   |   |   |   |   |   |   |   |
| Financial instruments which bear interest        |   |    | 608     |   |       |   | 728    |        |   |   | 3,471     |   |   |             | 13,832 |   |   |   | 69,266 |   |   |   | 87,905 |   |
| Financial instruments which do not bear interest |   |    | 168,671 |   |       |   | -      |        |   |   | -         |   |   |             | -      |   |   |   | - |   |   |   | 168,671 |   |
|                                             |   |    | 169,279 |   |       |   | 728    |        |   |   | 3,471     |   |   |             | 13,832 |   |   |   | 69,266 |   |   |   | 256,576 |   |

|                                                  |   | December 31, |    |
|-------------------------------------------------------|--------|--------------|---------|
|                                                  |   | 2 0 1 8      |    |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                                                  |   | NIS          |    |   | NIS |   |   | US Dollars |   |
|                                                  |   |         |    |   |   |   |   |   |   |
| Cash and cash equivalents                             |   |         | 134,287 |   |   |   | 113,062 |   |   |   | 35,829 |   |
| Financial assets at fair value through profit or loss |   |         | 137,904 |   |   |   | 143,514 |   |   |   | 36,794 |   |
|                                                  |   |         |    |   |   |   |   |   |   |   |   |   |
|                                                  |   |         | 272,191 |   |   |   | 256,576 |   |   |   | 72,623 |   |

----

|  | H. | Exchange rate risk: |
|--|----|---------------------|

|       |   | Assets  |   |   | Liabilities |   |
|------------|--------|---------|--------|--------|-------------|--------|
|       |   | 2 0 1 8 |   |   | 2 0 1 7     |   |   | 2 0 1 8 |   |   | 2 0 1 7 |   |
|       |   | NIS     |   |   | NIS         |   |   | NIS |   |   | NIS |   |
|       |   |    |   |   |        |   |   |   |   |   |   |   |
| US Dollars |   |    | 22,292 |   |        |   | 38,034 |   |   |   | 3,485 |   |   |   | 1,944 |   |
|       |   |    |   |   |        |   |   |   |   |   |   |   |   |   |   |   |
| EUR        |   |    | 8,082  |   |        |   | 1,299 |   |   |   | 5,677 |   |   |   | 3,568 |   |

|           |   | US DollarsImpact |   |   | EUR Impact |   |
|----------------|--------|------------------|--------|--------|------------|--------|
|           |   | 2 0 1 8          |   |   | 2 0 1 8    |   |
|           |   | NIS              |   |   | NIS        |   |
|           |   |             |   |   |       |   |
| Profit or loss |   |             | 1,881  |   |       |   | 240 |   |

|           |   | US DollarsImpact |   |   | EUR Impact |   |
|----------------|--------|------------------|--------|--------|------------|--------|
|           |   | 2 0 1 7          |   |   | 2 0 1 7    |   |
|           |   | NIS              |   |   | NIS        |   |
|           |   |             |   |   |       |   |
| Profit or loss |   |             | 3,609  |   |       |   | (227 | ) |

----

|  | I. | Fair value of financial instruments: |
|--|----|--------------------------------------|

|  | · | Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e. derived from                        prices). |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | I. | Fair value of financial instruments: (Cont.) |
|--|----|----------------------------------------------|

|                                                                        |   | December 31, 2018 |    |
|-----------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                        |   | Level 1           |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                                        |   | NIS               |    |   | NIS |   |   | NIS |   |   | NIS |   |
| financial assets ‘at fair value through profit or loss’ (FVTPL) |   |              |    |   |   |   |   |   |   |   |   |   |
| Marketable securities and derivatives                                       |   |              | 137,904 |   |   |   | - |   |   |   | - |   |   |   | 137,904 |   |

|                                                                        |   | December 31, 2017 |    |
|-----------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                        |   | Level 1           |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                                        |   | NIS               |    |   | NIS |   |   | NIS |   |   | NIS |   |
| financial assets ‘at fair value through profit or loss’ (FVTPL) |   |              |    |   |   |   |   |   |   |   |   |   |
| Marketable securities and derivatives                                       |   |              | 143,514 |   |   |   | - |   |   |   | - |   |   |   | 143,514 |   |

|  | A. | General: |
|--|----|----------|

|  | B. | Revenues from the main customers of the Import segment: |
|--|----|---------------------------------------------------------|

|       |   | Year ended December 31, |   |
|------------|--------|-------------------------|--------|
|       |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|       |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|       |   |                    |   |   |   |   |   |   |   |   |   |   |
| Customer A |   |                    | 50,439 |   |   |   | 50,053 |   |   |   | 46,171 |   |   |   | 13,458 |   |

----

|  | B. | Revenues from the main customers of the Import segment: (Cont.) |
|--|----|-----------------------------------------------------------------|

|                                |   | Year ended December 31, |    |
|-------------------------------------|--------|-------------------------|---------|
|                                |   | 2 0 1 8                 |    |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                |   | NIS                     |    |   | NIS |   |   | NIS |   |   | US Dollars |   |
| Canned Vegetables and Pickles       |   |                    | 57,333  |   |   |   | 53,839 |   |   |   | 59,028 |   |   |   | 15,297 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dairy and Dairy Substitute Products |   |                    | 116,083 |   |   |   | 102,372 |   |   |   | 87,803 |   |   |   | 30,972 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Canned Fish                         |   |                    | 52,573  |   |   |   | 50,579 |   |   |   | 45,073 |   |   |   | 14,027 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cereals, rice and pastas            |   |                    | 47,064  |   |   |   | 41,218 |   |   |   | 38,843 |   |   |   | 12,557 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                               |   |                    | 65,192  |   |   |   | 63,970 |   |   |   | 63,455 |   |   |   | 17,394 |   |
|                                |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |                    | 338,245 |   |   |   | 311,978 |   |   |   | 294,202 |   |   |   | 90,247 |   |

|  | A. | Transactions with Related Parties: |
|--|----|------------------------------------|

|                                                 |   | Year ended December 31, |   |
|------------------------------------------------------|--------|-------------------------|--------|
|                                                 |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 6 |   |   | 2 0 1 8 |   |
|                                                 |   | NIS                     |   |   | NIS |   |   | NIS |   |   | US Dollars |   |
|                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |
| Sales of goods to the Parent Company                 |   |                    | -      |   |   |   | 93 |   |   |   | 208 |   |   |   | - |   |
|                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Participation in expenses with Parent Company        |   |                    | -      |   |   |   | 95 |   |   |   | 296 |   |   |   | 32 |   |
|                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salary management fees, and bonus to related parties |   |                    | 4,352  |   |   |   | 2,281 |   |   |   | 2,190 |   |   |   | 1,161 |   |
|                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salary and bonus to key management personal          |   |                    | 2,643  |   |   |   | 2,734 |   |   |   | 3,091 |   |   |   | 705 |   |
|                                                 |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Car expenses                                         |   |                    | 433    |   |   |   | 498 |   |   |   | 383 |   |   |   | 116 |   |

|  | B. | Balances with Related Parties: |
|--|----|--------------------------------|

|            |   | Year ended December 31, |   |
|-----------------|--------|-------------------------|--------|
|            |   | 2 0 1 8                 |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|            |   | NIS                     |   |   | NIS |   |   | US Dollars |   |
|            |   |                    |   |   |   |   |   |   |   |
| Due to officers |   |                    | (267   | ) |   |   | 24 |   |   |   | (71 | ) |
|            |   |                    |   |   |   |   |   |   |   |   |   |   |
| Parent Company  |   |                    | 186    |   |   |   | (6 | ) |   |   | 50 |   |

----

|                   |   | As of December 31, |   |
|------------------------|--------|--------------------|--------|
|                   |   | 2 0 1 8            |   |   | 2 0 1 7 |   |   | 2 0 1 8 |   |
|                   |   | NIS                |   |   | NIS |   |   | US Dollars |   |
|                   |   | (in thousands)     |   |
|                   |   |               |   |   |   |   |   |   |   |
| Bank letters of credit |   |               | 957    |   |   |   | 2,979 |   |   |   | 255 |   |
|                   |   |               |   |   |   |   |   |   |   |   |   |   |
|                   |   |               | 957    |   |   |   | 2,979 |   |   |   | 255 |   |

|  | a. | On January 1, 2018, Mr. Michael Luboschitz was appointed as the CEO of the parent Company and of the Company. |
|--|----|---------------------------------------------------------------------------------------------------------------|

|  | b. | On January 18, 2018, the Tel Aviv District Attorney’s Office (Taxation and Economics) served indictments against Alexander Granovskyi and Gregory Gurtovoy, former (indirect) controlling shareholders                          and office holders of the parent Company and of companies under its control and against Joseph Schneerson, former officer holder of the parent Company and of companies under its control (hereinafter jointly: “the Defendants”). The Defendants are accused of offenses of theft by manager, fraudulent receipt of goods or services under aggravated circumstances, fraud and breach of trust in a corporation, false registration in                          corporate documents, reporting offenses under the Securities Law, non-compliance with the provisions of the Securities Regulations with the intent of misleading a reasonable investor and offenses under Section 4 of the Prohibition                          on Money Laundering Law. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | b. | (Cont.) |
|--|----|---------|

|  | c. | Further to the above, on January 7, 2019, the Court was served with a plea agreement under an amended indictment (hereafter – the “Plea Agreement"), which was approved by the Tel Aviv-Jaffa District Court. Under the Plea                            Agreement, Gregory Gurtovoy and Joseph Schneerson were convicted of offenses of aiding theft by manager, fraud and breach of trust in a corporation, false registration in corporate documents, multiple offenses pursuant to                            Section 423 of the Penal Law, non-compliance with the provisions of Section 36 of the Securities Law, 1968 (hereafter – the “Securities Law”), the annual reports regulations and the immediate reports regulations; fraudulent                            receipt of goods or services under aggravated circumstances pursuant to Section 415 of the Penal Law and offenses of managers in a corporation. Furthermore, the Plea Agreement includes a 36-month imprisonment to Joseph                            Schneerson and 31-month imprisonment to Gregory Gurtovoy. Furthermore, Gregory Gurtovoy will also pay a fine of NIS 1.2 million. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | On February 24, 2016, a motion to certify a derivative action (hereinafter - the “Motion”) was received at the parent Company’s offices. The Motion was filed with the District Court (Economic Department) in Tel Aviv by Yaad                            Peer Management Services Ltd. (hereinafter - the “Applicant”), that holds shares of the parent Company. The motion was filed against all directors and office holders in the Company. The parent Company and the company were added                            as respondents to the Motion. The Motion deals with the Applicant’s claim for damages suffered by the parent Company, which is estimated by the Applicant, as of the filing of the Motion, at approximately $ 3 million, due to an alleged violation of the                            directors’ and officers’ fiduciary duty, duty of care and duty of expertise towards the parent Company in connection with a $3 million investment in a company registered in the Czech Republic and which holds an inactive hotel in                            the Czech Republic. According to the Applicant, the investment is not related in any way to the activity of the Company and is probably used to assist the controlling shareholder of the parent Company in other matters or to                            cover his other obligations. As a result of the investigation that was conducted by the Securities Authority (the "Authority"), inter alia, regarding matters that have arisen as part of this litigation, restrictions were                              imposed as part of this investigation that prevent the former parent Company office holders, who are respondents to the Motion, from conversing with the attorneys of the parent Company. As part of the Motion – the date for                              submission of the parent Company’s response to the Motion has been postponed. On September 27, 2016, the Authority filed a notice updating the Court, in which it requested that the restrictions that it imposed remain in effect                              for further 6 months. On October 5, 2016, the parent Company filed a response to the Authority's update notice, in which it requested an extension of the deadline for submission of the parent Company's response to the Motion                              to 60 days after the restrictions imposed by the Authority are removed. On January 22, 2017, the Court ruled that in light of the restrictions placed by the Authority, at this stage, the deadline for filing of the parent                              Company's response must be postponed. On May 10, 2017 after the court re-considered the Applicant's claim, the Court decided that the deadline for filing of the parent Company’s response will be at least 60 days from the date                              on which the restrictions imposed by the Authority are removed. On July 2 2017, the Authority informed the Court that the restrictions have not yet been removed. On July 3, 2017, the Court ruled that the Authority will file a                              further update to its notice until September 15, 2017. On September 14, 2017, the Authority filed an update notice to the Court, to the effect that the restrictions had not yet been removed. On September 14, 2017, the Court                              ruled that the Authority would file an additional update to the Court until December 7, 2017. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | d. | (Cont.) |
|--|----|---------|

|  | e. | On August 16 2018, the company filed a notice whereby it intends to lodge a lawsuit against the office holders in connection with the events which are the subject matter of the derivative action and therefore it is no longer                            needed to discuss the motion to approve a derivative action. In view of company's notice, the said motion was stricken out and by a court ruling on October 4, 2018 and the case was closed. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | f. | Further to what is described in legal section e above, on November 4, 2018 the company filed a NIS 4,183,208 lawsuit against the Company’s former controlling shareholder – Mr. Gregory Gurtovoy and against five (former)                            Company directors and senior office holder - Israel Joseph Schneerson, Pavel Buber, Iram Ephraim Graiver. Ilan Menachem Admon and Zalman Vigler (hereafter jointly: the “Defendants”). |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | f. | (Cont.) |
|--|----|---------|

|  | g. | On July 23, 2017, Mr. Iram Graiver, former CEO of the Company and Willi-Food (hereinafter - “Mr. Graiver”) filed a lawsuit to the Regional Labor Court in Tel Aviv Jaffa (hereinafter - “the Labor Court”) claiming payment of                            social rights and different compensations at the total amount of NIS 2,377,305 (USD 634 thousand). On November 26, 2017, the Company filed a statement of defense. On July 27, 2017, the company filed a lawsuit to the Labor Court                            against Mr. Graiver, demanding that he repays funds that he has taken unlawfully from the Company, amounting to NIS 1,694,325 (USD 452 thousand). According to the Company, throughout his term of employment as an office holder in                            the Company, the defendant has unlawfully taken from the company salary, bonus in respect of 2016 and reimbursement of expenses. According to the Company, Mr. Graiver has done so while breaching his fiduciary duty and his duty                            of care towards the Company as well as the cogent provisions of the Companies Law, 5759-1999, whereby it is mandatory that payments of the type taken from the Company by Mr. Graiver are approved by the General Meeting of the                            Company’s shareholders; according to the Company, Mr. Graiver has not obtained such an approval. On November 26, 2017, Mr. Graiver filed a statement of defense. On November 2, 2017, a resolution was issued to join the hearings                            pertaining to the two proceedings described above. A preliminary hearing was held on March 7, 2018. The parties are in the process of document discovery and review. Proof hearings were held for December 18, 2019 and January 15,                            2020. At this preliminary stage of the proceedings, it is not yet possible to assess the result of the proceedings. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | h. | A lawsuit and a motion to approve it as class action was filed on January 3, 2018, against the company and another company to the Tel Aviv District Court for allegedly not complying with the food labelling regulations in                            connection with one of its products thereby misleading its customers. At this stage the amount of the lawsuit is NIS 2.7 million, since the plaintiff does not have sufficient data regarding the amount of the damage. The Company                            and the plaintiff reached a compromise agreement whereby the plaintiff will withdraw the lawsuit and it will be stricken out at a cost which is immaterial to the Company. On July 18, 2018, the Court approved the compromise                            agreement and struck out the lawsuit. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | i. | A lawsuit and a motion to approve it as class action was filed on March 26, 2018 against the company to the Tel Aviv District Court for allegedly breaching some of its consumer protection duties in connection with one of its                            products, thereby misleading its customers. At this stage, the amount of the lawsuit is NIS 2.7 million, since the plaintiff does not have sufficient data regarding the amount of the damage. A preliminary hearing was scheduled                            for December 19, 2018. In view of the preliminary stage of the proceedings, it is not yet possible to assess the result of the lawsuit. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | j. | A lawsuit and a motion to approve it as class action was filed on July 22, 2018, against Gold Frost Ltd (through the company.) (hereafter – “Gold Frost”) and eight other companies to the Jerusalem District Court for allegedly                            not complying with the food labelling regulations in connection with one of its products and thereby misleading consumers. At this stage the amount of the lawsuit is NIS 4 million, since the plaintiff does not have sufficient                            data regarding the amount of the damage. On November 16 2018, the plaintiff filed a motion to withdraw the lawsuit, including payment compensation and attorneys’ fees at amounts that are immaterial to the Company. As of the date                            of this report, the Court has not yet issued a ruling approving the withdrawal of the lawsuit. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | k. | In January 2015, a lawsuit was lodged in the court of first instance in Valencia, Spain against Gold Frost Ltd. (hereinafter – “Gold Frost”) and against the Company (hereinafter – “the Companies”) by a Spanish food                            manufacturer (hereinafter – “the Plaintiff”), with whom the Companies entered into an agreement for the production of Kosher food products in Spain and for the sale of these products by Gold Frost. The lawsuit was lodged in                            connection with a financial dispute in respect of a debt which was allegedly not paid to the Plaintiff; the Plaintiff also demands that the Companies compensate it for products it had produced and which, according to the                            statement of claim, were not collected by the Companies, and as a result the Plaintiff had to destroy them. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | l. | On June 4 2018, the independent auditors of Willi Food parent company B.S.D, and the company – the accounting firm Deloitte (Brightman Almagor) - announced the termination of its work as the independent auditor of the                            company, following the decision of the Board of Directors of B.S.D to file a lawsuit against the independent auditor of the company and others in a motion to approve a derivative action that was filed in July 2016 by                            shareholders of B.S.D against B.S.D, the former controlling shareholders, executives and directors in B.S.D and against B.S.D’s independent auditor. According to the notice issued by the independent auditor, such a legal dispute                            undermines the independent auditor’s independence. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | m. | On October 21, 2017, the Company announced that Gold Frost Ltd., a wholly owned subsidiary of the Company (hereinafter – “Gold Frost”) received a notice from Arla Foods Amba (hereinafter - "Arla"), a material supplier of the                            Group in the field of dairy and dairy substitute products (hereinafter – “the Supplier”), whereby the Supplier decided not to renew the exclusive distribution agreement with Gold Frost, which is expected to expire on December                            31, 2017. The end of the engagement with this distributor may have a material negative impact on the Group’s operating results. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | n. | On November 14, 2018, G. Willi-Food’s Board of Directors decided to enter into the field of non-bank credit (“extending credit”). The company's Board of Directors has instructed the company management to obtain a license to                            act as non-bank credit provider according to the Supervision of Financial Services (Regulated Financial Services) Law, 2016. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | o. | On October 29, 2009, the Company and the subsidiary Gold-Frost Ltd. (hereafter – the “Companies”) filed to the Rishon-LeZion Magistrates Court a lawsuit demanding the refund of import permit fees at the total amount of                            approximately NIS 1.3 million. The fees were paid to the Ministry of Health in respect of early registration for food import permits with the national food service between the years 2002-2009; the Companies claim that those fees                            were collected unlawfully. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                           | G. WILLI-FOOD INTERNATIONAL LTD. |                        |
|--------------------------------|----------------------------------|-----------------------------|
|                           |                             |                        |   |
|                           | By:                              | /s/ Michael Luboschitz |   |
|                           |                             | Michael Luboschitz          |   |
|                           |                             | CEO                         |   |
|                           |                             |                        |   |
| Date:  November, 04, 2019 |                             |                        |   |

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