EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2

Exhibit 99.2
 
Unaudited Financial Information for the Three Months and Nine Months Ended September 30, 2020 of Kenon and
OPC and Reconciliation of Certain non-IFRS Financial Information

Table of Contents



 
Appendix A
 
Summary Kenon consolidated financial information
 
Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Financial Position as of September 30, 2020 and December 31, 2019

   
As of
September 30,
   
As of
December 31,
 
   
2020
   
2019
 
   
$ millions
 
Current assets
           
Cash and cash equivalents
   
432
     
147
 
Short-term deposits and restricted cash
   
16
     
33
 
Trade receivables
   
33
     
39
 
Short-term derivative instruments
   
1
     
-
 
Other current assets
   
19
     
40
 
Asset held for sale
   
-
     
70
 
Total current assets
   
501
     
329
 
Non-current assets
               
Investments in associated companies
   
137
     
120
 
Long-term investment
   
230
     
-
 
Long-term deposits and restricted cash
   
100
     
77
 
Other non-current assets
   
39
     
88
 
Long-term derivative instruments
   
1
     
2
 
Deferred payment receivable
   
217
     
204
 
Deferred taxes, net
   
3
     
2
 
Property, plant and equipment, net
   
720
     
668
 
Intangible assets, net
   
1
     
1
 
Right-of-use assets, net
   
84
     
17
 
Total non-current assets
   
1,532
     
1,179
 
Total assets
   
2,033
     
1,508
 
Current liabilities
               
Current maturities of loans from banks and others
   
48
     
46
 
Short-term derivative instruments
   
7
     
6
 
Current tax liabilities
   
10
     
-
 
Trade and other payables
   
68
     
52
 
Current maturities of lease liabilities
   
16
     
1
 
Total current liabilities
   
149
     
105
 
Non-current liabilities
               
Long-term loans from banks and others
   
533
     
504
 
Debentures
   
181
     
73
 
Deferred taxes, net
   
80
     
79
 
Non-current tax liabilities
   
31
     
29
 
Other non-current liabilities
   
-
     
1
 
Long-term derivative instruments
   
8
     
-
 
Long-term lease liabilities
   
5
     
5
 
Total non-current liabilities
   
838
     
691
 
Total liabilities
   
987
     
796
 
Equity
               
Share capital
   
602
     
602
 
Translation reserve
   
(2
)
   
18
 
Capital reserve
   
5
     
14
 
Accumulated profit/(loss)
   
355
     
(11
)
Equity attributable to owners of the Company
   
960
     
623
 
Non-controlling interests
   
86
     
89
 
Total equity
   
1,046
     
712
 
Total liabilities and equity
   
2,033
     
1,508
 
 

 Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Profit & Loss
 
   
For the nine months
ended September 30,
   
For the three months
ended September 30,
 
   
2020
   
2019
   
2020
   
2019
 
   
$ millions
   
$ millions
 
Revenue
   
282
     
284
     
117
     
102
 
Cost of sales and services (excluding depreciation and amortization)
   
(202
)
   
(195
)
   
(84
)
   
(69
)
Depreciation
   
(23
)
   
(23
)
   
(9
)
   
(8
)
Gross profit
   
57
     
66
     
24
     
25
 
Selling, general and administrative expenses
   
(28
)
   
(25
)
   
(10
)
   
(7
)
Other income
   
2
     
6
     
1
     
5
 
Operating profit
   
31
     
47
     
15
     
23
 
Financing expenses
   
(24
)
   
(22
)
   
(11
)
   
(6
)
Financing income
   
13
     
14
     
5
     
5
 
Financing expenses, net
   
(11
)
   
(8
)
   
(6
)
   
(1
)
Net gains/(losses) related to changes of interest in Qoros
   
304
     
(11
)
   
10
     
(3
)
Share in profit/(losses) of associated companies, net
   
45
     
(18
)
   
46
     
(3
)
Profit before income taxes
   
369
     
10
     
65
     
16
 
Income taxes
   
(8
)
   
(14
)
   
(3
)
   
(7
)
Profit/(loss) for the period from continuing operations
   
361
     
(4
)
   
62
     
9
 
Gain/(loss) for the period from discontinued operations
                               
-Recovery of retained claims, net
   
8
     
26
     
8
     
26
 
-Other
   
-
     
(1
)
   
-
     
-
 
     
8
     
25
     
8
     
26
 
Profit for the period
   
369
     
21
     
70
     
35
 
Attributable to:
                               
Kenon's shareholders
   
362
     
9
     
67
     
28
 
Non-controlling interests
   
7
     
12
     
3
     
7
 
Profit for the period
   
369
     
21
     
70
     
35
 
Basic/diluted profit/(loss) per share attributable to Kenon's shareholders (in dollars):
                               
Basic/diluted profit per share
   
6.72
     
0.16
     
1.25
     
0.53
 
Basic/diluted profit/(loss) per share from continuing operations
   
6.56
     
(0.30
)
   
1.09
     
0.05
 
Basic/diluted profit per share from discontinued operations
   
0.16
     
0.46
     
0.16
     
0.48
 


Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Cash Flows
For the nine months ended September 30, 2020 and 2019
 
 
 
 
For the nine months
ended September 30,
 
 
 
2020
   
2019
 
 
 
$ millions
 
Cash flows from operating activities
           
Profit for the period
   
369
     
21
 
Adjustments:
               
Depreciation and amortization
   
23
     
23
 
Financing expenses, net
   
11
     
8
 
Share in (profit)/losses of associated companies, net
   
(45
)
   
18
 
Net (gains)/losses related to changes of interest in Qoros
   
(304
)
   
11
 
Gain on sale of property, plant and equipment
   
(2
)
   
-
 
Recovery of retained claims, net
   
(8
)
   
-
 
Share-based payments
   
1
     
1
 
Income taxes
   
8
     
19
 
 
   
53
     
101
 
Change in trade and other receivables
   
11
     
(18
)
Change in trade and other payables
   
19
     
16
 
     
83
     
99
 
Income taxes paid, net
   
-
     
(3
)
Net cash provided by operating activities
   
83
     
96
 


 
 
Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Cash Flows, continued
For the nine months ended September 30, 2020 and 2019
 
 
 
For the nine months
ended September 30,
 
 
 
2020
 
 
2019
 
 
 
$ millions
 
Cash flows from investing activities
 
       
 
Short-term deposits and restricted cash, net
 
 
17
     
(18)
 
Investment in long-term deposits, net
 
 
(23)
     
(20)
 
Sale of subsidiary, net of cash disposed off
 

-
     
1
 
Acquisition of property, plant and equipment
 
 
(50)
     
(24)
 
Deferred consideration in respect of acquisition of subsidiary
   
(13)
     
-
 
Proceeds from sale of interest in Qoros
 
 
220
     
-
 
Recovery of retained claims, net
   
10
     
5
 
Income tax paid
   
-
     
(6)
 
Long-term advance deposits and prepaid expenses
   
(54)
     
-
 
Interest received
 
 
1
     
2
 
Payments of transactions in derivatives, net
 

(2)
     
(1)
 
Net cash provided/(used in) by investing activities
 
 
106
     
(61)
 
 
 
           
 
Cash flows from financing activities
 
           
 
Repayment of long-term loans, debentures, derivative financial instruments and lease liabilities
 
 
(34)
     
(14)
 
Proceeds from long-term loans
   
58
     
-
 
Proceeds from issuance of share capital by a subsidiary to non-controlling interests
     
-
   
76
 
Proceeds from issuance of debentures, less issuance expenses
   
111
     
-
 
Short-term credit from banks and others, net
   
(7)
     
(4)
 
Acquisition of non-controlling interests
 
 
(8)
     
-
 
Payment in respect of derivative financial instruments, net
 
 
(4)
     
-
 
Dividends paid to holders of non-controlling interests
 
 
(6)
     
(7)
 
Interest paid
 
 
(17)
     
(15)
 
Net cash provided by financing activities
 
 
93
     
36
 
 
 
           
 
Increase in cash and cash equivalents
   
282
     
71
 
Cash and cash equivalents at beginning of the period
 
 
147
     
131
 
Effect of exchange rate fluctuations on balances of cash and cash equivalents
 
 
3
     
8
 
Cash and cash equivalents at end of the period
 
 
432
     
210
 
 


Information regarding reportable segments

The following table sets forth selected financial data for Kenon’s reportable segments for the periods presented:
 
 
 
For the nine months ended September 30, 2020
 
   
OPC
   
Quantum1
   
ZIM
   
Other2
   
Consolidated Results
 
   
$ millions
 
Revenue          
   
281
     
-
     
-
     
1
     
282
 
Depreciation and amortization
   
(23
)
   
-
     
-
     
-
     
(23
)
Financing income          
   
1
     
-
     
-
     
12
     
13
 
Financing expenses          
   
(24
)
   
-
     
-
     
-
     
(24
)
Net gains related to changes of interest in Qoros
   
-
     
304
     
-
     
-
     
304
 
Share in (losses)/profit of associated companies
   
-
     
(6
)
   
51
     
-
     
45
 
Profit before taxes          
   
19
     
298
     
51
     
1
     
369
 
Income taxes          
   
(7
)
   
-
     
-
     
(1
)
   
(8
)
Profit from continuing operations
   
12
     
298
     
51
     
-
     
361
 
____________________________________
(1)
Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)
Includes the results of Primus; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.

   
For the nine months ended September 30, 2019
 
   
OPC
   
Quantum1
   
ZIM
   
Other2
   
Consolidated Results
 
   
$ millions
 
Revenue          
   
284
     
-
     
-
     
-
     
284
 
Depreciation and amortization
   
(23
)
   
-
     
-
     
-
     
(23
)
Financing income          
   
2
     
-
     
-
     
12
     
14
 
Financing expenses          
   
(22
)
   
-
     
-
     
-
     
(22
)
Recovery of financial guarantee
   
-
     
11
     
-
     
-
     
11
 
Fair value loss on put option
   
-
     
(22
)
   
-
     
-
     
(22
)
Share in losses of associated companies
   
-
     
(13
)
   
(5
)
   
-
     
(18
)
Profit / (Loss) before taxes
   
39
     
(24
)
   
(5
)
   
-
     
10
 
Income taxes          
   
(11
)
   
-
     
-
     
(3
)
   
(14
)
Profit / (Loss) from continuing operations
   
28
     
(24
)
   
(5
)
   
(3
)
   
(4
)
____________________________________
(1)
Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)
Includes the results of Primus; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.



 
 
For the three months ended September 30, 2020
 
   
OPC
   
Quantum1
   
ZIM
   
Other2
   
Consolidated Results
 
   
$ millions
 
Revenue          
   
117
     
-
     
-
     
-
     
117
 
Depreciation and amortization
   
(9
)
   
-
     
-
     
-
     
(9
)
Financing income          
   
-
     
-
     
-
     
5
     
5
 
Financing expenses          
   
(11
)
   
-
     
-
     
-
     
(11
)
Net gains related to changes of interest in Qoros
   
-
     
10
     
-
     
-
     
10
 
Share in profit of associated companies
   
-
     
-
     
46
     
-
     
46
 
Profit before taxes          
   
8
     
10
     
46
     
1
     
65
 
Income taxes          
   
(3
)
   
-
     
-
     
-
     
(3
)
Profit from continuing operations
   
5
     
10
     
46
     
1
     
62
 
____________________________________
(1)
Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)
Includes the results of Primus; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.

 
 
For the three months ended September 30, 2019
 
   
OPC
   
Quantum1
   
ZIM
   
Other2
   
Consolidated Results
 
   
$ millions
 
Revenue          
   
102
     
-
     
-
     
-
     
102
 
Depreciation and amortization
   
(8
)
   
-
     
-
     
-
     
(8
)
Financing income          
   
1
     
-
     
-
     
4
     
5
 
Financing expenses          
   
(6
)
   
-
     
-
     
-
     
(6
)
Net gains related to changes of interest in Qoros
   
-
     
(3
)
   
-
     
-
     
(3
)
Share in losses of associated companies
   
-
     
(5
)
   
2
     
-
     
(3
)
Profit / (Loss) before taxes
   
20
     
(8
)
   
2
     
2
     
16
 
Income taxes          
   
(6
)
   
-
     
-
     
(1
)
   
(7
)
Profit / (Loss) from continuing operations
   
14
     
(8
)
   
2
     
1
     
9
 
____________________________________
(1)          Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)          Includes the results of Primus; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.


 Information regarding associated companies

 
 
Asset held for sale
   
Carrying amounts of investment in
associated companies
   
Equity in the net earnings / (losses) of associated companies
 
 
 
as at
   
as at
   
For the nine months ended
   
for the three months ended
 
 
 
December 31,
2019
   
September 30,
2020
   
December 31,
2019
   
September 30,
2020
   
September 30,
2019
   
September 30,
2020
   
September 30,
2019
 
 
 
$ millions
   
$ millions
   
$ millions
   
$ millions
 
ZIM
   
-
     
137
     
84
     
51
     
(5
)
   
46
     
2
 
Qoros
   
70
     
-
     
36
     
(6
)
   
(13
)
   
-
     
(5
)
 
   
70
     
137
     
120
     
45
     
(18
)
   
46
     
(3
)
 

Appendix B

Summary OPC consolidated financial information1

 Summary Data from OPC’s Consolidated Statement of Income
   
For the nine months ended
September 30,
   
For the three months
ended September 30,
 
   
2020
   
2019
   
2020
    2019  
   
$ millions
   
$ millions
 
                         
Revenue
   
281
     
284
     
117
     
102
 
Cost of sales (excluding depreciation and amortization)
   
(202
)
   
(195
)
   
(84
)
   
(69
)
Depreciation and amortization
   
(23
)
   
(23
)
   
(9
)
   
(8
)
Gross profit
   
56
     
66
     
24
     
25
 
Selling, general and administrative expenses
   
(13
)
   
(12
)
   
(5
)
   
(4
)
Other income
   
-
     
5
     
-
     
4
 
Financing expenses, net
   
(24
)
   
(20
)
   
(11
)
   
(5
)
Profit before taxes
   
19
     
39
     
8
     
20
 
Taxes on income
   
(7
)
   
(11
)
   
(3
)
   
(6
)
Net profit for the period
   
12
     
28
     
5
     
14
 
Attributable to:
                               
Equity holders of the company
   
6
     
20
     
3
     
10
 
Non-controlling interest
   
6
     
8
     
2
     
4
 
Net profit for the period
   
12
     
28
     
5
     
14
 
____________________________________
(1)          Translations of NIS amounts into US Dollars use a rate of 3.47: 1 for 2020 and 3.59: 1 for 2019.

Summary Data from OPC’s Consolidated Statement of Cash Flows

 
 
For the nine months
ended September 30,
   
For the three months
ended September 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
 
 
$ millions
   
$ millions
 
Cash flows provided by operating activities
   
88
     
115
     
37
     
41
 
Cash flows used in investing activities
   
(126
)
   
(61
)
   
(25
)
   
(2
)
Cash flows provided by financing activities
   
94
     
29
     
14
     
30
 
Increase in cash and cash equivalents
   
56
     
83
     
26
     
69
 
Cash and cash equivalents at end of the period
   
172
     
180
     
172
     
180
 
Investments in property, plant and equipment
   
50
     
24
     
25
     
5
 
Total depreciation and amortization
   
23
     
23
     
9
     
8
 

Summary Data from OPC’s Consolidated Statement of Financial Position
 
 
 
As of
 
 
 
September 30, 2020
   
December 31, 2019
 
 
 
$ millions
 
Total financial liabilities1
   
763
     
622
 
Total monetary assets2
   
234
     
152
 
Total equity attributable to the owners
   
221
     
228
 
Total assets
   
1,194
     
1,011
 
 ____________________________________
(1)
Including loans from banks and others and debentures
(2)
Including cash and cash equivalents, short-term deposits and restricted cash.
 

 
Appendix C
 
Definition of OPC’s EBITDA and non-IFRS reconciliation
 
This press release, including the financial tables, presents EBITDA, which is considered to be a “non-IFRS financial measure.”
 
OPC defines “EBITDA” as for each period as net profit before depreciation and amortization, financing expenses, net, and income tax expense. EBITDA is not recognized under IFRS or any other generally accepted accounting principles as a measure of financial performance and should not be considered as a substitute for net profit or loss, cash flow from operations or other measures of operating performance determined in accordance with IFRS. EBITDA is not intended to represent funds available for dividends or other discretionary uses because those funds may be required for debt service, capital expenditures, working capital and other commitments and contingencies. There are limitations that impair the use of EBITDA as a measure of OPC's profitability since it does not take into consideration certain costs and expenses that result from OPC's business that could have a significant effect on net profit, such as financial expenses, taxes, depreciation, capital expenses and other related items.
 
OPC believes that the disclosure of EBITDA provides transparent and useful information to investors and financial analysts in their review of the company’s, or its subsidiaries’ operating performance and in the comparison of such operating performance to the operating performance of other companies in the same industry or in other industries that have different capital structures, debt levels and/or income tax rates.
 
Set forth below is a reconciliation of OPC’s net profit to EBITDA for the periods presented. Other companies may calculate EBITDA differently, and therefore this presentation of EBITDA may not be comparable to other similarly titled measures used by other companies.

   
For the nine months ended September 30,
 
 
 
2020
   
2019
 
 
 
$ millions
 
Net profit for the period
   
12
     
28
1 
Depreciation and amortization
   
23
     
23
 
Financing expenses, net
   
24
     
20
 
Income tax expense
   
7
     
11
 
EBITDA
   
66
     
82
 
____________________________________
(1) Includes non-recurring revenue of $4 million.

   
For the three months ended September 30,
 
 
 
2020
   
2019
 
 
 
$ millions
 
Net profit for the period
   
5
     
14
1 
Depreciation and amortization
   
9
     
8
 
Financing expenses, net
   
11
     
5
 
Income tax expense
   
3
     
6
 
EBITDA
    28       33  
____________________________________
(1) Includes non-recurring revenue of $4 million.


Appendix D
 
Summary Financial Information of OPC and its Subsidiaries
 
The tables below set forth debt, cash and cash equivalents, deposits and restricted cash for OPC and its subsidiaries as of September 30, 2020:

As at September 30, 2020
 
OPC-Rotem
   
OPC-Hadera
   
OPC Energy
   
Other
   
Total
 
 
                             
Debt (including accrued interest)
   
325
     
205
     
194
     
39
     
763
 
Cash and cash equivalents and short-term deposits
   
77
     
2
     
82
     
11
     
172
 
Debt service reserves (out of restricted cash)
   
22
     
13
     
27
     
-
     
62
 
 
The table below sets forth debt, cash and cash equivalents, deposits and debt service reserves for OPC and its subsidiaries as of December 31, 2019 (in $ millions): 


As at December 31, 2019
 
OPC-Rotem
   
OPC-Hadera
   
OPC Energy
   
Other
   
Total
 
 
                             
Debt (including accrued interest)
   
346
     
194
     
82
     
-
     
622
 
Cash and cash equivalents and short-term deposits
   
33
     
3
     
74
     
1
     
111
 
Debt service reserves (out of restricted cash)
   
22
     
-
     
19
     
-
     
41
 



Appendix E
 
Summary Operational Information of OPC
 
The tables below set forth details of sales, generation and purchases of electricity by OPC and availability and net generation of OPC split by the OPC-Rotem plant and the OPC-Hadera energy center (kWh in millions):

 
 
For the nine months ended
September 30,
   
For the three months ended
September 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
Sales to private customers
   
3,057
     
2,982
     
1,200
     
991
 
Sales to the system administrator
   
115
     
54
     
7
      6
 
Total sales
   
3,172
     
3,036
     
1,207
     
997
 

 
 
 
For the nine months ended
September 30,
   
For the three months ended
September 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
Net generation of electricity
   
2,958
     
2,829
     
1,048
     
897
 
Purchase of electricity from the system administrator
   
214
     
207
     
159
     
100
 
Total volume of electricity generated and purchases from the system administrator
   
3,172
     
3,036
     
1,207
     
997
 


 
 
 
For the nine months ended
September 30,
   
For the nine months ended
September 30,
 
 
 
2020
   
2019
   
2020
   
2019
 
   
In thousands of tonnes
 
Net generation of electricity and purchases during dispatch reduction – OPC Rotem
   
2,692
     
2,766
     
826
     
876
 
Net generation – OPC Hadera (energy center)
   
266
     
63
     
222
     
21
 
Total volume of electricity generated and purchases from the system administrator
   
2,958
     
2,829
     
1,048
     
897
 

 
 

For the nine months ended
September 30,


For the nine months ended
September 30,

 
 
2020
   
2019
   
2020
   
2019
 
   
In thousands of tonnes
 
Steam Generation
   
544
     
574
     
159
     
186