EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2

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

Table of Contents

Appendix A: Summary Kenon consolidated financial information

Appendix B: Summary OPC consolidated financial information

Appendix C: Definition of OPC’s EBITDA and non-IFRS reconciliation

Appendix D: Summary financial information of OPC’s subsidiaries

Appendix E: Summary operational information of OPC

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

   
As of
June 30,
    
As of
December 31,
  
   
2020
    
2019
  
   
(Unaudited)
        
   
$ millions
  
Current assets
            
Cash and cash equivalents
    
398
      
147
  
Short-term deposits and restricted cash
    
16
      
33
  
Trade receivables
    
31
      
39
  
Other current assets
    
19
      
40
  
Asset held for sale
    
-
      
70
  
Total current assets
    
464
      
329
  
Non-current assets
                
Investments in associated companies
    
91
      
120
  
Long-term investment
    
220
      
-
  
Long-term deposits and restricted cash
    
99
      
77
  
Long-term derivative instruments
    
1
      
2
  
Other non-current assets
    
39
      
88
  
Deferred payment receivable
    
212
      
204
  
Deferred taxes, net
    
2
      
2
  
Property, plant and equipment, net
    
699
      
668
  
Intangible assets, net
    
1
      
1
  
Right-of-use assets, net
    
85
      
17
  
Total non-current assets
    
1,449
      
1,179
  
Total assets
    
1,913
      
1,508
  
Current liabilities
                
Current maturities of loans from banks and others
    
47
      
46
  
Short-term derivative instruments
    
7
      
6
  
Current tax liabilities
    
4
      
-
  
Trade and other payables
    
54
      
52
  
Current maturities of lease liabilities
    
16
      
1
  
Total current liabilities
    
128
      
105
  
Non-current liabilities
                
Long-term loans from banks and others
    
507
      
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
    
812
      
691
  
Total liabilities
    
940
      
796
  
Equity
                
Share capital
    
602
      
602
  
Translation reserve
    
(4
)
    
18
  
Capital reserve
    
6
      
14
  
Accumulated profit/(loss)
    
287
      
(11
)
Equity attributable to owners of the Company
    
891
      
623
  
Non-controlling interests
    
82
      
89
  
Total equity
    
973
      
712
  
Total liabilities and equity
    
1,913
      
1,508
  

 
 Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Profit & Loss
 
   
For the six months ended
June 30,
    
For the three months ended
June 30,
  
   
2020
    
2019
    
2020
    
2019
  
   
$ millions
    
$ millions
  
Revenue
    
165
      
182
      
76
      
85
  
Cost of sales and services (excluding depreciation and amortization)
    
(118
)
    
(126
)
    
(59
)
    
(64
)
Depreciation and amortization
    
(13
)
    
(15
)
    
(7
)
    
(8
)
Gross profit
    
34
      
41
      
10
      
13
  
Selling, general and administrative expenses
    
(18
)
    
(18
)
    
(10
)
    
(8
)
Other income
    
-
      
1
      
-
      
1
  
Operating profit
    
16
      
24
      
-
      
6
  
Financing expenses
    
(14
)
    
(16
)
    
(9
)
    
(10
)
Financing income
    
9
      
9
      
3
      
5
  
Financing expenses, net
    
(5
)
    
(7
)
    
(6
)
    
(5
)
Net gains/(losses) related to changes of interest in Qoros
    
294
      
(8
)
    
278
      
(3
)
Share in (losses)/profits of associated companies, net of tax
    
(1
)
    
(16
)
    
6
      
(3
)
Profit/(loss) before income taxes
    
304
      
(7
)
    
278
      
(5
)
Income taxes
    
(5
)
    
(7
)
    
-
      
(2
)
Profit/(loss) for the period from continuing operations
    
299
      
(14
)
    
278
      
(7
)
Loss for the period from discontinued operations
    
-
      
(1
)
    
-
      
(1
)
Profit/(loss) for the period
    
299
      
(15
)
    
278
      
(8
)
Attributable to:
                                
Kenon's shareholders
    
295
      
(20
)
    
279
      
(8
)
Non-controlling interests
    
4
      
5
      
(1
)
    
-
  
Profit/(loss) for the period
    
299
      
(15
)
    
278
      
(8
)
Basic/Diluted profit/(loss) per share attributable to Kenon’s shareholders (in dollars):
                                
Basic/Diluted profit/(loss) per share
    
5.47
      
(0.37
)
    
5.19
      
(0.13
)
Basic/Diluted profit/(loss) per share from continuing operations
    
5.47
      
(0.35
)
    
5.19
      
(0.12
)
Basic/diluted loss per share from discontinued operations
    
-
      
(0.02
)
    
-
      
(0.01
)

Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Cash Flows
For the six months ended June 30, 2020 and 2019
 
 
  
For the six months
ended June 30,
  
 
  
2020
    
2019
  
 
  
$ millions
  
Cash flows from operating activities
            
Profit/(loss) for the period
    
299
      
(15
)
Adjustments:
                
Depreciation and amortization
    
14
      
15
  
Financing expenses, net
    
5
      
7
  
Share in losses of associated companies, net
    
1
      
16
  
Net (gains)/losses related to changes of interest in Qoros
    
(294
)
    
8
  
Share-based payments
    
1
      
1
  
Income taxes
    
5
      
8
  
 
    
31
      
40
  
Change in trade and other receivables
    
17
      
12
  
Change in trade and other payables
    
-
      
10
  
     
48
      
62
  
Income taxes paid, net
    
-
      
(7
)
Net cash provided by operating activities
    
48
      
55
  

Kenon Holdings Ltd and subsidiaries
Consolidated Statement of Cash Flows, continued
For the six months ended June 30, 2020 and 2019
 
 
  
For the six months
ended June 30,
  
 
  
2020
    
2019
  
 
  
$ millions
  
Cash flows from investing activities
            
Short-term deposits and restricted cash, net
    
17
      
(26
)
Investment in long-term deposits, net
    
(21
)
    
(14
)
Sale of subsidiary, net of cash disposed off
    
-
      
1
  
Acquisition of property, plant and equipment
    
(39
)
    
(19
)
Long-term advance deposits and prepaid expenses
    
(54
)
    
-
  
Proceeds from sale of interest in Qoros
    
220
      
-
  
Payment of transactions in derivatives, net
    
(1
)
    
-
  
Net cash provided by/(used in) investing activities
    
122
      
(58
)
 
                
Cash flows from financing activities
                
Proceeds from/(repayment of) long-term loans, debentures, derivative financial instruments and lease liabilities, net
    
2
      
(8
)
Proceeds from issuance of share capital by a subsidiary to non-controlling interests
    
-
      
33
  
Proceeds from issuance of debentures, less issuance expenses
    
111
      
-
  
Short-term credit from banks and others, net
    
(6
)
    
(2
)
Acquisition of non-controlling interests
    
(8
)
    
-
  
Payment in respect of derivative financial instruments, net
    
(3
)
    
-
  
Dividends paid to holders of non-controlling interests
    
(6
)
    
(7
)
Interest paid
    
(10
)
    
(11
)
Net cash provided by financing activities
    
80
      
5
  
 
                
Increase in cash and cash equivalents
    
250
      
2
  
Cash and cash equivalents at beginning of the period
    
147
      
131
  
Effect of exchange rate fluctuations on balances of cash and cash equivalents
    
1
      
5
  
Cash and cash equivalents at end of the period
    
398
      
138
  
 
Information regarding reportable segments

The following table sets forth selected financial data for Kenon’s reportable segments for the periods presented:

 
  
For the six months ended June 30, 2020
  
   
OPC
    
Quantum1
    
Other2
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
165
      
-
      
-
      
165
  
Depreciation and amortization
    
(13
)
    
-
      
-
      
(13
)
Financing income          
    
1
      
-
      
8
      
9
  
Financing expenses          
    
(14
)
    
-
      
-
      
(14
)
Net gains related to changes of interest in Qoros
    
-
      
294
      
-
      
294
  
Share in (losses) / profit of associated companies
    
-
      
(6
)
    
5
      
(1
)
Profit before taxes          
    
11
      
288
      
5
      
304
  
Income taxes          
    
(5
)
    
-
      
-
      
(5
)
Profit from continuing operations
    
6
      
288
      
5
      
299
  
____________________________________
(1)
Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)
Includes the results of Primus; the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.

 
  
For the six months ended June 30, 2019
  
   
OPC
    
Quantum1
    
Other2
    
Consolidated Results
  
                         
Revenue          
    
182
      
-
      
-
      
182
  
Depreciation and amortization
    
(15
)
    
-
      
-
      
(15
)
Financing income          
    
-
      
-
      
9
      
9
  
Financing expenses          
    
(15
)
    
-
      
(1
)
    
(16
)
Net losses related to changes of interest in Qoros
    
-
      
(8
)
    
-
      
(8
)
Share in losses of associated companies
    
-
      
(9
)
    
(7
)
    
(16
)
Profit / (Loss) before taxes
    
19
      
(17
)
    
(9
)
    
(7
)
Income taxes          
    
(5
)
    
-
      
(2
)
    
(7
)
Profit / (Loss) from continuing operations
    
14
      
(17
)
    
(11
)
    
(14
)
____________________________________
(1)
Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)
Includes the results of Primus; the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.

 
  
For the three months ended June 30, 2020
  
   
OPC
    
Quantum1
    
Other2
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
76
      
-
      
-
      
76
  
Depreciation and amortization
    
(7
)
    
-
      
-
      
(7
)
Financing income          
    
-
      
-
      
3
      
3
  
Financing expenses          
    
(9
)
    
-
      
-
      
(9
)
Net gains related to changes of interest in Qoros
    
-
      
278
      
-
      
278
  
Share in (losses) / profits of associated companies
    
-
      
(2
)
    
8
      
6
  
(Loss) / Profit before taxes
    
(5
)
    
276
      
7
      
278
  
Income taxes          
    
-
      
-
      
-
      
-
  
(Loss) / profit from continuing operations
    
(5
)
    
276
      
7
      
278
  
____________________________________
(1)
Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2)
Includes the results of Primus; the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses.

 
  
For the three months ended June 30, 2019
  
   
OPC
    
Quantum1
    
Other2
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
85
      
-
      
-
      
85
  
Depreciation and amortization
    
(8
)
    
-
      
-
      
(8
)
Financing income          
    
-
      
-
      
5
      
5
  
Financing expenses          
    
(10
)
    
-
      
-
      
(10
)
Net losses related to changes of interest in Qoros
    
-
      
(3
)
    
-
      
(3
)
Share in (losses) / profits of associated companies
    
-
      
(4
)
    
1
      
(3
)
(Loss) / Profit before taxes
    
-
      
(6
)
    
1
      
(5
)
Income taxes          
    
-
      
-
      
(2
)
    
(2
)
Loss from continuing operations
    
-
      
(6
)
    
(1
)
    
(7
)
____________________________________
(1) Quantum is a wholly-owned subsidiary of Kenon which holds Kenon's interest in Qoros.
(2) Includes the results of Primus; the results of ZIM, as an associated company; 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 (losses) / earnings of associated companies
  
   
as at
    
as at
    
For the six months ended
     for the three months ended  
 
  
December 31,
2019
    
June 30,
2020
    
December 31,
2019
    
June 30,
2020
    
June 30,
2019
    
June 30,
2020
    
June 30,
2019
  
   
$ millions
    
$ millions
    
$ millions
    
$ millions
  
ZIM
    
-
      
91
      
84
      
5
      
(7
)
    
8
      
1
  
Qoros
    
70
      
-
      
36
      
(6
)
    
(9
)
    
(2
)
    
(4
)
 
    
70
      
91
      
120
      
(1
)
    
(16
)
    
6
      
(3
)

Appendix B

Summary OPC consolidated financial information1

 OPC’s Consolidated Statement of Profit
 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
 
  
$ millions
    
$ millions
  
Revenue
    
165
      
182
      
76
      
85
  
Cost of sales (excluding depreciation and amortization)
    
(118
)
    
(126
)
    
(59
)
    
(64
)
Depreciation and amortization
    
(13
)
    
(15
)
    
(7
)
    
(8
)
Gross profit
    
34
      
41
      
10
      
13
  
Selling, general and administrative expenses
    
(8
)
    
(7
)
    
(5
)
    
(4
)
Business development expenses
    
(2
)
    
(1
)
    
(1
)
    
-
  
Other income, net
    
-
      
1
      
-
      
1
  
Financing expenses, net
    
(13
)
    
(15
)
    
(9
)
    
(10
)
Profit/(loss) before taxes
    
11
      
19
      
(5
)
    
-
  
Taxes on income
    
(5
)
    
(5
)
    
-
      
-
  
Net profit/(loss) for the period
    
6
      
14
      
(5
)
    
-
  
Attributable to:
                                
Equity holders of the company
    
3
      
11
      
(6
)
    
-
  
Non-controlling interest
    
3
      
3
      
1
      
-
  
Net profit for the period
    
6
      
14
      
(5
)
    
-
  

 (1)
Translations of NIS amounts into US Dollars use a rate of 3.50: 1 for 2020 and 3.62: 1 for 2019.

Summary Data from OPC’s Consolidated Statement of Cash Flows

 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
 
  
$ millions
    
$ millions
  
Cash flows provided by operating activities
    
51
      
73
      
27
      
21
  
Cash flows used in investing activities
    
(99
)
    
(58
)
    
(10
)
    
(46
)
Cash flows provided by / (used in) financing activities
    
81
      
(1
)
    
46
      
7
  
Increase / (decrease) in cash and cash equivalents
    
33
      
14
      
63
      
(18
)
Cash and cash equivalents at end of the period
    
145
      
106
      
145
      
106
  
Investments in property, plant and equipment
    
25
      
18
      
11
      
10
  
Total depreciation and amortization
    
13
      
15
      
7
      
8
  

Summary Data from OPC’s Consolidated Statement of Financial Position
 
 
  
As of
  
 
  
June
30, 2020
    
December
31, 2019
  
 
  
$ millions
  
Total financial liabilities1
    
736
      
622
  
Total monetary assets2
    
204
      
152
  
Total equity attributable to the owners
    
217
      
228
  
Total assets
    
1,142
      
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” 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 six months
ended June 30,
  
 
  
2020
    
2019
  
 
  
$ millions
  
Net profit for the period
    
6
      
14
  
Depreciation and amortization
    
13
      
15
  
Financing expenses, net
    
13
      
15
  
Income tax expense
    
5
      
5
  
EBITDA
    
37
      
49
  

   
For the three months
ended June 30,
  
 
  
2020
    
2019
  
 
  
$ millions
  
Net loss for the period
    
(5
)
    
-
  
Depreciation and amortization
    
7
      
8
  
Financing expenses, net
    
9
      
10
  
EBITDA
    
11
      
18
  

Appendix D
 
Summary Financial Information of OPC’s Subsidiaries
 
The table below sets forth debt, cash and cash equivalents, deposits and debt service reserves for OPC’s subsidiaries as of June 30, 2020 (in $ millions):

As at June 30, 2020
  
OPC-Rotem
    
OPC-Hadera
    
OPC Energy
    
Other
    
Total
  
 
                              
Debt (including accrued interest)
    
330
      
206
      
192
      
8
      
736
  
Cash and cash equivalents and short-term deposits
    
39
      
16
      
89
      
1
      
145
  
Debt service reserves (out of restricted cash)
    
40
      
-
      
19
      
-
      
59
  

The table below sets forth debt, cash and cash equivalents, deposits and debt service reserves for OPC’s 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 net generation of OPC split by the Rotem plant and the Hadera energy center (kWh in millions):

 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
 
  
2020
    
2019
    
2020
    
2019
 
Sales to private customers
    
1,857
      
1,991
      
957
      
1,022
  
Sales to the system administrator
    
108
      
48
      
11
      
5
  
Total sales
    
1,965
      
2,039
      
968
      
1,027
  

 
 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
Net generation of electricity and purchases during dispatch reduction
    
1,910
      
1,932
      
923
      
948
  
Purchase of electricity from the system administrator
    
55
      
107
      
45
      
79
  
Total volume of electricity generated and purchases from the system administrator
    
1,965
      
2,039
      
968
      
1,027
  

 
 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
Net generation of electricity and purchases during dispatch reduction – OPC Rotem
    
1,866
      
1,890
      
901
      
929
  
Net generation – OPC Hadera (energy center)
    
44
      
42
      
22
      
19
  
Total volume of electricity generated and purchases from the system administrator
    
1,910
      
1,932
      
923
      
948
  

 
 
  
For the six months ended
June 30,
    
For the three months ended
June 30,
  
 
  
2020
    
2019
    
2020
    
2019
  
Steam Generation (in thousands of tonnes)
    
384
      
388
      
175
      
188