EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2

Exhibit 99.2
 
Financial Information for the Years Ended December 31, 2021 and 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 its subsidiaries
Consolidated Statements of Financial Position as at December 31, 2021 and 2020
 
   
December 31,
    
December 31,
  
   
2021
    
2020
  
   
$ millions
  
Current assets
            
Cash and cash equivalents
    
475
      
286
  
Short-term deposits and restricted cash
    
-
      
564
  
Trade receivables
    
63
      
48
  
Short-term derivative instruments
    
1
      
-
  
Other current assets
    
43
      
22
  
Total current assets
    
582
      
920
  
Non-current assets
                
Investment in ZIM (associated company)
    
1,354
      
297
  
Investment in OPC’s associated companies
    
545
      
-
  
Long-term investment (Qoros)
    
-
      
235
  
Long-term deposits and restricted cash
    
21
      
72
  
Long-term derivative instruments
    
12
      
-
  
Deferred taxes, net
    
49
      
7
  
Property, plant and equipment, net
    
1,126
      
819
  
Intangible assets, net
    
225
      
1
  
Long-term prepaid expenses and other non-current assets
    
57
      
45
  
Right-of-use assets, net
    
98
      
86
  
Total non-current assets
    
3,487
      
1,562
  
Total assets
    
4,069
      
2,482
  
Current liabilities
                
Current maturities of loans from banks and others
    
38
      
47
  
Short-term derivative instruments
    
9
      
39
  
Trade and other payables
    
171
      
128
  
Deferred taxes
    
21
      
-
  
Dividend payable
    
189
      
-
  
Current maturities of lease liabilities
    
19
      
14
  
Total current liabilities
    
447
      
228
  
Non-current liabilities
                
Long-term loans from banks and others
    
597
      
576
  
Debentures
    
575
      
296
  
Deferred taxes, net
    
125
      
94
  
Other non-current liabilities
    
29
      
1
  
Long-term derivative instruments
    
-
      
7
  
Long-term lease liabilities
    
15
      
4
  
Total non-current liabilities
    
1,341
      
978
  
Total liabilities
    
1,788
      
1,206
  
Equity
                
Share capital
    
602
      
602
  
Translation reserve
    
26
      
16
  
Capital reserve
    
26
      
(11
)
Accumulated profit
    
1,140
      
460
  
Equity attributable to owners of the Company
    
1,794
      
1,067
  
Non-controlling interests
    
487
      
209
  
Total equity
    
2,281
      
1,276
  
Total liabilities and equity
    
4,069
      
2,482
  


2
 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss for the years ended December 31, 2021 and 2020
 
   
For the year ended December 31,
  
   
2021
    
2020
  
   
$ millions
  
Revenue
    
488
      
386
  
Cost of sales and services (excluding depreciation and amortization)
    
(337
)
    
(282
)
Depreciation and amortization
    
(53
)
    
(33
)
Gross profit
    
98
      
71
  
Selling, general and administrative expenses
    
(76
)
    
(50
)
Other income
    
-
      
2
  
Operating profit
    
22
      
23
  
Financing expenses
    
(144
)
    
(51
)
Financing income
    
3
      
14
  
Financing expenses, net
    
(141
)
    
(37
)
(Losses)/gains related to Qoros
    
(251
)
    
310
  
Gains related to ZIM
    
-
      
44
  
Share in profit/(losses) of associated companies, net
                
-          ZIM
    
1,261
      
167
  
-          OPC’s associated companies
    
(11
)
    
-
  
-          Qoros
    
-
      
(6
)
Profit before income taxes
    
880
      
501
  
Income tax expense
    
(5
)
    
(5
)
Profit for the period from continuing operations
    
875
      
496
  
Profit for the period from discontinued operations
    
-
      
8
  
Profit for the period
    
875
      
504
  
Attributable to:
                
Kenon’s shareholders
    
930
      
507
  
Non-controlling interests
    
(55
)
    
(3
)
Profit for the period
    
875
      
504
  
                 
Basic/diluted profit per share attributable to Kenon’s shareholders (in dollars):
                
Basic/diluted profit per share
    
17.27
      
9.41
  
Basic/diluted profit per share from continuing operations
    
17.27
      
9.25
  
Basic/diluted profit per share from discontinued operations
    
-
      
0.16
  
 
3

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020
 
   
For the year ended December 31,
  
   
2021
    
2020
  
   
$ millions
  
Cash flows from operating activities
            
Profit for the period
    
875
      
504
  
Adjustments:
                
Depreciation and amortization
    
58
      
34
  
Financing expenses, net
    
141
      
37
  
Share in profit of associated companies, net
    
(1,250
)
    
(161
)
Losses/(gains) related to Qoros
    
251
      
(310
)
Gains related to ZIM
    
-
      
(44
)
Gain on sale of property, plant and equipment
    
-
      
(1
)
Recovery of retained claims, net
    
-
      
(10
)
Share-based payments
     18      
1
  
Income tax expense
    
5
      
7
  
     
98
      
57
  
Change in trade and other receivables
    
(1
)
    
(10
)
Change in trade and other payables
    
-
      
45
  
     
97
      
92
  
Dividends received from associated companies
    
143
      
-
  
Net cash provided by operating activities
    
240
      
92
  

 
4
 
 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020, continued
 
   
For the year ended December 31,
  
   
2021
    
2020
  
   
$ millions
  
Cash flows from investing activities
            
Short-term deposits and restricted cash, net
    
558
      
(503
)
Investment in long-term deposits, net
    
52
      
8
  
Long-term advance deposits and prepaid expenses
    
(7
)
    
(58
)
Long-term loan to an associate
    
(5
)
    
-
  
Acquisition of subsidiary, less cash acquired
    
(659
)
    
-
  
Income tax paid
    
-
      
(32
)
Acquisition of associated company, less cash acquired
    
(9
)
    
-
  
Acquisition of property, plant and equipment
    
(231
)
    
(74
)
Acquisition of intangible assets
    
(1
)
    
-
  
Reimbursement of right-of-use asset
    
5
      
-
  
Interest received
    
-
      
1
  
Deferred consideration in respect of acquisition of subsidiary
    
-
      
(14
)
Payment of transactions in derivatives, net
    
(6
)
    
(4
)
Proceeds from sale of and distribution from associated companies
    
47
      
-
  
Proceeds from deferred payment
    
-
      
218
  
Proceeds from sale of interest in ZIM
    
67
      
-
  
Proceeds from sale of interest in Qoros
    
-
      
220
  
(Payment)/recovery of financial guarantee
    
(16
)
    
6
  
Recovery of retained claims
    
-
      
10
  
Net cash used in investing activities
    
(205
)
    
(222
)
                 
Cash flows from financing activities
                
Dividends paid to holders of non-controlling interests
    
(10
)
    
(12
)
Dividends paid
    
(100
)
    
(120
)
Investments of holders of non-controlling interests in the capital of a subsidiary
    
197
      
-
  
Costs paid in advance in respect of taking out of loans
    
(5
)
    
(9
)
Payment of early redemption commission with respect to the debentures
    
(76
)
    
(11
)
Payment in respect of derivative financial instruments, net
    
(14
)
    
-
  
Proceeds from issuance of share capital by a subsidiary to non-controlling interests, net of issuance expenses
    
142
      
217
  
Proceeds from long-term loans
    
343
      
73
  
Proceeds from issuance of debentures, net of issuance expenses
    
263
      
281
  
Repayment of long-term loans, debentures and lease liabilities
    
(562
)
    
(130
)
Acquisition of non-controlling interests
    
-
      
(8
)
Interest paid
    
(31
)
    
(25
)
Net cash provided by financing activities
    
147
      
256
  
                 
Increase in cash and cash equivalents
    
182
      
126
  
Cash and cash equivalents at beginning of the year
    
286
      
147
  
Effect of exchange rate fluctuations on balances of cash and cash equivalents
    
7
      
13
  
Cash and cash equivalents at end of the period
    
475
      
286
  

5

Information regarding reportable segments
 
Information regarding activities of the reportable segments are set forth in the following table.
 
 
  
For the year ended December 31, 2021
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Quantum*
    
Other
    
Consolidated Results
  
    $ millions
 
Revenue          
    
437
      
51
      
-
      
-
      
-
      
488
  
Depreciation and amortization
    
(44
)
    
(13
)
    
-
      
-
      
(1
)
    
(58
)
Financing income          
    
3
      
-
      
-
      
-
      
-
      
3
  
Financing expenses          
    
(119
)
    
(25
)
    
-
      
-
      
-
      
(144
)
Losses related to Qoros
    
-
      
-
      
-
      
(251
)
    
-
      
(251
)
Share in (losses)/profit of associated companies
    
-
      
(11
)
    
1,261
      
-
      
-
      
1,250
  
(Loss)/profit before taxes
    
(57
)
    
(61
)
    
1,261
      
(251
)
    
(12
)
    
880
  
Income tax benefit/(expense)
    
10
      
14
      
-
      
-
      
(29
)
    
(5
)
(Loss)/profit after taxes
    
(47
)
    
(47
)
    
1,261
      
(251
)
    
(41
)
    
875
  

                                                   
 
* Owner of interest in Qoros.

 
  
For the year ended December 31, 2020
  
   
OPC Israel
    
ZIM
    
Quantum*
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue          
    
386
      
-
      
-
      
-
      
386
  
Depreciation and amortization
    
(34
)
    
-
      
-
      
-
      
(34
)
Financing income          
    
-
      
-
      
-
      
14
      
14
  
Financing expenses          
    
(50
)
    
-
      
-
      
(1
)
    
(51
)
Gains related to Qoros
    
-
      
-
      
310
      
-
      
310
  
Gains related to ZIM
    
-
      
44
      
-
      
-
      
44
  
Share in profit/(losses) of associated companies
    
-
      
167
      
(6
)
    
-
      
161
  
(Loss)/profit before taxes
    
(9
)
    
211
      
304
      
(5
)
    
501
  
Income tax expense          
    
(4
)
    
-
      
-
      
(1
)
    
(5
)
(Loss)/profit after taxes
    
(13
)
    
211
      
304
      
(6
)
    
496
  

                                                   
 
* Owner of interest in Qoros.

6

Information regarding associated companies

 
  
Carrying amounts of investment in
associated companies
    
Equity in the net profit / (losses) of associated companies
  
 
  
as at
    
for the year ended
  
 
  
December 31,
    
December 31,
    
December 31,
    
December 31,
  
 
  
2021
    
2020
    
2021
    
2020
  
 
  
$ millions
    
$ millions
  
CPV Fairview LLC
    
173
      
-
      
1
      
-
  
CPV Maryland LLC
    
61
      
-
      
3
      
-
  
CPV Shore Holdings LLC
    
75
      
-
      
10
      
-
  
CPV Towantic LLC
    
112
      
-
      
5
      
-
  
CPV Valley Holdings LLC
    
58
      
-
      
(29
)
    
-
  
CPV Three Rivers LLC
    
64
      
-
      
(1
)
    
-
  
Others
    
2
      
-
      
-
      
-
  
     
545
      
-
      
(11
)
    
-
  
ZIM
    
1,354
      
297
      
1,261
      
167
  
Qoros*
    
-
      
-
      
-
      
(6
)
 
                                
 
    
1,899
      
297
      
1,250
      
161
  
 
 
 *Qoros was accounted for as an associated company until April 2020, when we reduced our interest in Qoros from 24% to 12%.

7
 
Appendix B
 
Summary of OPC consolidated financial information
 
OPC’s Consolidated Statements of Profit or Loss
 
 
  
For the year ended
December 31,
  
 
  
2021
     2020  
 
  
$ millions
  
Revenue
    
488
      
386
  
Cost of sales (excluding depreciation and amortization)
    
(337
)
    
(282
)
Depreciation and amortization
    
(53
)
    
(33
)
Gross profit
    
98
      
71
  
Selling, general and administrative expenses
    
(64
)
    
(30
)
Operating profit
    
34
      
41
  
Financing expenses
    
(144
)
    
(50
)
Financing income
    
3
          
Financing expenses, net
    
(141
)
    
(50
)
Share in losses of associated companies, net
    
(11
)
    
-
  
Loss before income taxes
    
(118
)
    
(9
)
Income tax benefit/(expense)
    
24
      
(4
)
Loss for the period
    
(94
)
    
(13
)
                 
Attributable to:
                
Equity holders of the company
    
(68
)
    
(17
)
Non-controlling interest
    
(26
)
    
4
  
Loss for the period
    
(94
)
    
(13
)
 
8
Summary Data from OPC’s Consolidated Statement of Cash Flows
 
 
  
For the year ended
December 31,
  
 
  
2021
    
2020
  
 
  
$ millions
  
Cash flows provided by operating activities
    
119
      
105
  
Cash flows used in investing activities
    
(256
)
    
(644
)
Cash flows provided by financing activities
    
311
      
478
  
Increase/(decrease) in cash and cash equivalents
    
174
      
(61
)
Cash and cash equivalents at end of the period
    
243
      
62
  

Summary Data from OPC’s Consolidated Statement of Financial Position
 
 
  
As at
  
 
  
December 31, 2021
    
December 31, 2020
  
 
  
$ millions
  
Total financial liabilities1
    
1,215
      
921
  
Total monetary assets2
    
264
      
698
  
Investment in associated companies
    
545
      
-
  
Total equity attributable to the owners
    
730
      
520
  
Total assets
    
2,488
      
1,734
  
 
                                                   
1.
Including loans from banks and others and debentures
2.
Including cash and cash equivalents, term deposits and restricted cash
 
9

Appendix C
 
Definition of OPC’s Adjusted EBITDA and share of EBITDA of its associated companies and non-IFRS reconciliation
This press release, including the financial tables, presents OPC’s Adjusted EBITDA and share of EBITDA of its associated companies, which are non-IFRS financial measures.
 
OPC defines EBITDA as for each period as net profit before depreciation and amortization, financing expenses, net, and income tax expense, and Adjusted EBITDA as for each period as net profit before depreciation and amortization, financing expenses, net, income tax expense and share of losses of associated companies, net. EBITDA and Adjusted EBITDA are 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 and Adjusted EBITDA are 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 and Adjusted EBITDA as measures 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, and depreciation and amortization.
 
OPC believes that the disclosure of Adjusted EBITDA and share of EBITDA of its associated companies provide transparent and useful information to investors and financial analysts in their review of the company’s, or its subsidiaries’, or its associated companies’ 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 are reconciliations of OPC’s net profit to Adjusted EBITDA and share of net profit to share of EBITDA of its associated companies for the periods presented. Other companies may calculate EBITDA and Adjusted EBITDA differently, and therefore this presentation of EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.

   
For the year ended December 31,
  
 
  
2021
    
2020
  
 
  
$ millions
  
Net loss for the period
    
(94
)
    
(13
)
Depreciation and amortization
    
57
      
34
  
Financing expenses, net
    
141
      
50
  
Share in losses of associated companies, net
    
11
      
-
  
Income tax (benefit)/expense
    
(24
)
    
4
  
Adjusted EBITDA
    
91
      
75
  
Proportionate share of EBITDA of associated companies
    
106
      
-
  

   
For the year ended December 31, 2021
  
   
$ millions
  
   
Total
  
Share in losses of associated companies, net
    
(11
)
Share of depreciation and amortization
    
39
  
Share of financing expenses, net
    
78
  
Proportionate share of EBITDA of associated companies
    
106
  

10

Appendix D
 
Summary Financial Information of OPC’s Subsidiaries
 
The tables below set forth debt, cash and cash equivalents, and debt service reserves for OPC’s subsidiaries as of December 31, 2021 and December 31, 2020 (in $ millions):

 As at December 31, 2021
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
OPC-Tzomet
    
CPV Keenan
    
Others
    
Total
  
 
                                          
Debt (including accrued interest)
    
588
      
73
      
219
      
170
      
98
      
67
      
1,215
  
Cash and cash equivalents
    
86
      
17
      
8
      
24
      
1
      
107
      
243
  
Debt service reserves (out of restricted cash)
    
-
      
-
      
14
      
-
      
-
      
-
      
14
  
Other restricted cash
    
5
      
-
      
1
      
-
      
-
      
1
      
7
  

 As at December 31, 2020
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
Others
    
Total
  
 
                              
Debt (including accrued interest)
    
305
      
341
      
217
      
58
      
921
  
Cash and cash equivalents and short-term deposits
    
511
      
38
      
1
      
12
      
562
  
Debt service reserves (out of restricted cash)
    
8
      
24
      
14
      
-
      
46
  
Other restricted cash
    
72
      
15
      
3
      
-
      
90
  

11
Appendix E
 
Definition of ZIM’s Adjusted EBITDA and non-IFRS reconciliation
This press release, including the financial tables, presents ZIM’s Adjusted EBITDA, which is a non-IFRS financial measure.
 
ZIM defines Adjusted EBITDA as for each period as net profit before depreciation and amortization, financing expenses, net, income tax expense, and non-recurring expenses, which may include impairment of assets, non-cash charter hire expenses, capital gains/losses beyond the ordinary course of business and expenses related to legal contingencies. Adjusted 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. Adjusted 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 Adjusted EBITDA as a measure of ZIM’s profitability since it does not take into consideration certain costs and expenses that result from ZIM’s business that could have a significant effect on net profit, such as financial expenses, taxes, and depreciation and amortization.
 
ZIM believes that the disclosure of Adjusted EBITDA enables the comparison of operating performance between periods on a consistent basis. This measure should not be considered in isolation, or as a substitute for operating income, any other performance measure, or cash flow data, which were prepared in accordance with IFRS as measures of profitability or liquidity. In addition, non-IFRS financial measures may not be comparable to similarly titled measures reported by other companies, due to differences in the way these measures are calculated.
 
Set forth below is a reconciliation of ZIM’s net profit to Adjusted EBITDA for the periods presented.

   
For the year ended December 31,
  
 
  
2021
    
2020
  
 
  
$ millions
  
Net profit for the period
    
4,649
      
524
  
Depreciation and amortization
    
780
      
314
  
Financing expenses, net
    
157
      
181
  
Income tax expense
    
1,010
      
17
  
EBITDA
    
6,596
      
1,036
  
Non-recurring expenses
    
1
      
-
  
Adjusted EBITDA
    
6,597
      
1,036
  


12