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, 2023 and 2022 of Kenon and OPC and
 
Reconciliation of Certain non-IFRS Financial Information

Table of Contents

Appendix A: Summary of Kenon’s consolidated financial information

Appendix B: Summary of OPC’s consolidated financial information

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

Appendix D: Summary of financial information of OPC’s subsidiaries

Appendix E: Definition of ZIM’s Adjusted EBITDA and non-IFRS reconciliation

Appendix A

Summary Kenon consolidated financial information

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Financial Position (Unaudited)

   
June 30,
    
December 31,
  
   
2023
    
2022
  
   
$ millions
  
Current assets
            
Cash and cash equivalents
    
590
      
535
  
Short-term deposits and restricted cash
    
16
      
46
  
Trade receivables
    
75
      
74
  
Short-term derivative instruments
    
4
      
3
  
Other investments
    
263
      
345
  
Other current assets
    
50
      
59
  
Total current assets
    
998
      
1,062
  
Non-current assets
                
Investment in ZIM (associated company)
    
226
      
427
  
Investment in OPC’s associated companies
    
675
      
652
  
Long-term restricted cash
    
16
      
15
  
Long-term derivative instruments
    
17
      
16
  
Deferred taxes, net
    
6
      
6
  
Property, plant and equipment, net
    
1,652
      
1,223
  
Intangible assets, net
    
288
      
221
  
Long-term prepaid expenses and other non-current assets
    
81
      
51
  
Right-of-use assets, net
    
132
      
99
  
Total non-current assets
    
3,093
      
2,710
  
Total assets
    
4,091
      
3,772
  
Current liabilities
                
Current maturities of loans from banks and others
    
89
      
39
  
Trade and other payables
    
222
      
134
  
Short-term derivative instruments
    
1
      
1
  
Current tax liabilities
    
-
      
1
  
Deferred taxes
    
-
      
1
  
Current maturities of lease liabilities
    
17
      
17
  
Total current liabilities
    
329
      
193
  
Non-current liabilities
                
Long-term loans from banks and others
    
799
      
610
  
Debentures
    
469
      
513
  
Deferred taxes, net
    
129
      
98
  
Other non-current liabilities
    
39
      
42
  
Long-term lease liabilities
    
57
      
20
  
Total non-current liabilities
    
1,493
      
1,283
  
Total liabilities
    
1,822
      
1,476
  
Equity
                
Share capital
    
50
      
50
  
Translation reserve
    
(5
)
    
1
  
Capital reserve
    
72
      
42
  
Accumulated profit
    
1,303
      
1,505
  
Equity attributable to owners of the Company
    
1,420
      
1,598
  
Non-controlling interests
    
849
      
698
  
Total equity
    
2,269
      
2,296
  
Total liabilities and equity
    
4,091
      
3,772
  

 
2
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss (Unaudited)
 
   
For the six months
ended June 30,
    
For the three months
ended June 30,
  
   
2023
    
2022
    
2023
    
2022
  
   
$ millions
    
$ millions
  
Revenue
    
312
      
267
      
165
      
121
  
Cost of sales and services (excluding depreciation and amortization)
    
(232
)
    
(197
)
    
(129
)
    
(100
)
Depreciation and amortization
    
(30
)
    
(26
)
    
(17
)
    
(13
)
Gross profit
    
50
      
44
      
19
      
8
  
Selling, general and administrative expenses
    
(47
)
    
(44
)
    
(23
)
    
(23
)
Other (expenses)/income
    
(1
)
    
1
      
(2
)
    
-
  
Operating profit/(loss)
    
2
      
1
      
(6
)
    
(15
)
Financing expenses
    
(32
)
    
(27
)
    
(18
)
    
(14
)
Financing income
    
24
      
31
      
11
      
24
  
Financing (expenses)/income, net
    
(8
)
    
4
      
(7
)
    
10
  
(Losses)/gains related to ZIM
    
(1
)
    
202
      
-
      
(2
)
Share in (losses)/profit of associated companies, net
                                
-          ZIM
    
(43
)
    
706
      
(31
)
    
276
  
-          OPC’s associated companies
    
28
      
20
      
4
      
(10
)
(Loss)/profit before income taxes
    
(22
)
    
933
      
(40
)
    
259
  
Income tax (expense)/benefit
    
(10
)
    
(19
)
    
3
      
(2
)
(Loss)/profit for the period
    
(32
)
    
914
      
(37
)
    
257
  
Attributable to:
                                
Kenon’s shareholders
    
(37
)
    
904
      
(30
)
    
265
  
Non-controlling interests
    
5
      
10
      
(7
)
    
(8
)
(Loss)/profit for the period
    
(32
)
    
914
      
(37
)
    
257
  
                                 
Basic/diluted (loss)/profit per share attributable to Kenon’s shareholders (in dollars):
                                
Basic/diluted (loss)/profit per share
    
(0.70
)
    
16.78
      
(0.56
)
    
4.92
  
 
3
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited)

   
For the six months
ended June 30,
  
   
2023
    
2022
  
   
$ millions
  
Cash flows from operating activities
            
(Loss)/profit for the period
    
(32
)
    
914
  
Adjustments:
                
Depreciation and amortization
    
38
      
29
  
Financing expenses/(income), net
    
8
      
(4
)
Losses/(gains) related to ZIM
    
1
      
(202
)
Share in losses/(profit) of associated companies, net
    
15
      
(726
)
Share-based payments
    
5
      
5
  
Income tax expense
    
10
      
19
  
     
45
      
35
  
Change in trade and other receivables
    
4
      
(9
)
Change in trade and other payables
    
(11
)
    
(11
)
Cash generated from operating activities
    
38
      
15
  
Income taxes paid, net
    
(1
)
    
-
  
Dividends received from associated companies
    
152
      
545
  
Net cash provided by operating activities
    
189
      
560
  

4
 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows (Unaudited), continued

   
For the six months
ended June 30,
  
   
2023
    
2022
  
   
$ millions
  
Cash flows from investing activities
            
Short-term deposits and restricted cash, net
    
30
      
(10
)
Short-term collaterals deposits, net
    
20
      
-
  
Investment in long-term deposits, net
    
-
      
12
  
Investment in associated companies, less cash acquired
    
(2
)
    
-
  
Acquisition of subsidiary, less cash acquired
    
(250
)
    
-
  
Acquisition of associated company, less cash acquired
    
-
      
(1
)
Acquisition of property, plant and equipment
    
(139
)
    
(163
)
Acquisition of intangible assets
    
(5
)
    
(2
)
Proceeds from sale of interest in ZIM
    
-
      
464
  
Proceeds from distribution from associated company
    
2
      
3
  
Proceeds from sale of other investments
    
139
      
248
  
Purchase of other investments
    
(50
)
    
(601
)
Long-term advance deposits and prepaid expenses
    
(7
)
    
(4
)
Long-term loans to an associate
    
(24
)
    
-
  
Interest received
    
12
      
1
  
Proceeds from transactions in derivatives, net
    
2
      
-
  
Net cash used in investing activities
    
(272
)
    
(53
)
                 
Cash flows from financing activities
                
Repayment of long-term loans, debentures and lease liabilities
    
(124
)
    
(20
)
Proceed from Veridis transaction
    
129
      
-
  
Investments of holders of non-controlling interests in the capital of a subsidiary
    
54
      
12
  
Receipt from long-term loans
    
267
      
84
  
Proceeds from/(payment) in respect of derivative financial instruments, net
    
1
      
(1
)
Repurchase of shares
    
(14
)
    
-
  
Costs paid in advance in respect of taking out of loans
    
(5
)
    
(2
)
Dividends paid
    
(150
)
    
(189
)
Interest paid
    
(16
)
    
(13
)
Net cash provided by/(used in) financing activities
    
142
      
(129
)
                 
Increase in cash and cash equivalents
    
59
      
378
  
Cash and cash equivalents at beginning of the year
    
535
      
475
  
Effect of exchange rate fluctuations on balances of cash and cash equivalents
    
(4
)
    
(16
)
Cash and cash equivalents at end of the period
    
590
      
837
  

5
Information regarding reportable segments
 
Information regarding activities of the reportable segments are set forth in the following table.
 
 
  
For the six months ended June 30, 2023
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  

  $ millions  
Revenue
    
278
      
34
      
-
      
-
      
312
  
Depreciation and amortization
    
(31
)
    
(7
)
    
-
      
-
      
(38
)
Financing income
    
8
      
3
      
-
      
13
      
24
  
Financing expenses
    
(25
)
    
(6
)
    
-
      
(1
)
    
(32
)
Loss related to ZIM
    
(1
 )    
-
      
-
      
(1
)
    
-
  
Share in profit/(loss) of associated companies
    
-
      
28
      
(43
)
    
-
      
(15
)
Profit/(loss) before taxes
    
8
      
7
      
(44
)
    
7
      
(22
)
Income tax expense
    
-
      
(3
)
    
-
      
(7
)
    
(10
)
Profit/(loss) for the period
    
8
      
4
      
(44
)
    
-
      
(32
)

 
  
For the six months ended June 30, 2022
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  

 
$ millions
  
Revenue
    
239
      
28
      
-
      
-
      
267
  
Depreciation and amortization
    
(23
)
    
(6
)
    
-
      
-
      
(29
)
Financing income
    
7
      
22
      
-
      
2
      
31
  
Financing expenses
    
(23
)
    
(4
)
    
-
      
-
      
(27
)
Gains related to ZIM
    
-
      
-
      
202
      
-
      
202
  
Share in profit of associated companies
    
-
      
20
      
706
      
-
      
726
  
Profit/(loss) before taxes
    
5
      
25
      
908
      
(5
)
    
933
  
Income tax expense
    
(3
)
    
(5
)
    
-
      
(11
)
    
(19
)
Profit/(loss) for the period
    
2
      
20
      
908
      
(16
)
    
914
  

6
 
  
For the three months ended June 30, 2023
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  

 
$ millions
  
Revenue
    
147
      
18
      
-
      
-
      
165
  
Depreciation and amortization
    
(19
)
    
(4
)
    
-
      
-
      
(23
)
Financing income
    
2
      
1
      
-
      
8
      
11
  
Financing expenses
    
(15
)
    
(4
)
    
-
      
1
      
(18
)
Share in profit/(loss) of associated companies
    
-
      
4
      
(31
)
    
-
      
(27
)
(Loss)/profit before taxes
    
(6
)
    
(8
)
    
(31
)
    
5
      
(40
)
Income tax benefit
    
2
      
1
      
-
      
-
      
3
  
(Loss)/profit for the period
    
(4
)
    
(7
)
    
(31
)
    
5
      
(37
)

 
  
For the three months ended June 30, 2022
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  

 
$ millions
  
Revenue
    
105
      
16
      
-
      
-
      
121
  
Depreciation and amortization
    
(12
)
    
(3
)
    
-
      
-
      
(15
)
Financing income
    
4
      
19
      
-
      
1
      
24
  
Financing expenses
    
(12
)
    
(2
)
    
-
      
-
      
(14
)
Loss related to ZIM
    
-
      
-
      
(2
)
    
-
      
(2
)
Share in (losses)/profit of associated companies
    
-
      
(10
)
    
276
      
-
      
266
  
(Loss)/profit before taxes
    
(13
)
    
2
      
274
      
(4
)
    
259
  
Income tax benefit/(expense)
    
2
      
(1
)
    
-
      
(3
)
    
(2
)
(Loss)/profit for the period
    
(11
)
    
1
      
274
      
(7
)
    
257
  
7

Appendix B
 
Summary of OPC consolidated financial information
 
OPC’s Consolidated Statements of Profit or Loss (Unaudited)
 
   
For the six months ended June 30,
    
For the three months ended June 30,
  
   
2023
    
2022
    
2023
    
2022
  
   
$ millions
    
$ millions
  
Revenue
    
312
      
267
      
165
      
121
  
Cost of sales (excluding depreciation and amortization)
    
(232
)
    
(197
)
    
(129
)
    
(100
)
Depreciation and amortization
    
(30
)
    
(26
)
    
(17
)
    
(13
)
Gross profit
    
50
      
44
      
19
      
8
  
Selling, general and administrative expenses
    
(42
)
    
(37
)
    
(21
)
    
(19
)
Other (expenses)/income
    
(1
)
    
1
      
-
      
1
  
Operating profit/(loss)
    
7
      
8
      
(2
)
    
(10
)
Financing expenses
    
(31
)
    
(27
)
    
(19
)
    
(14
)
Financing income
    
11
      
29
      
3
      
23
  
Financing (expenses)/income, net
    
(20
)
    
2
      
(16
)
    
9
  
Share in profit/(loss) of associated companies, net
    
28
      
20
      
4
      
(10
)
Profit/(loss) before income taxes
    
15
      
30
      
(14
)
    
(11
)
Income tax (expense)/benefit
    
(3
)
    
(8
)
    
3
      
1
  
Profit/(loss) for the period
    
12
      
22
      
(11
)
    
(10
)
                                 
Attributable to:
                                
Equity holders of the company
    
11
      
20
      
(6
)
    
(4
)
Non-controlling interest
    
1
      
2
      
(5
)
    
(6
)
Profit/(loss) for the period
    
12
      
22
      
(11
)
    
(10
)
 
8
Summary Data from OPC’s Consolidated Statement of Cash Flows (Unaudited)
 
   
For the six months ended June 30,
    
For the three months ended June 30,
  
   
2023
    
2022
    
2023
    
2022
  
   
$ millions
    
$ millions
  
Cash flows provided by operating activities
    
45
      
29
      
17
      
2
  
Cash flows used in investing activities
    
(369
)
    
(164
)
    
(295
)
    
(77
)
Cash flows provided by financing activities
    
307
      
60
      
86
      
22
  
Decrease in cash and cash equivalents
    
(17
)
    
(75
)
    
(192
)
    
(53
)
Cash and cash equivalents at end of the period
    
221
      
145
      
221
      
145
  

Summary Data from OPC’s Consolidated Statement of Financial Position (Unaudited)
 
 
  
As at
  
 
  
June 30, 2023
    
December 31, 2022
  
 
  
$ millions
  
Total financial liabilities1
    
1,356
      
1,163
  
Total monetary assets2
    
253
      
287
  
Investment in associated companies
    
675
      
652
  
Total equity attributable to the owners
    
1,045
      
997
  
Total assets
    
3,235
      
2,709
  
 
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 non-IFRS reconciliation

This press release, including the financial tables, presents OPC’s Adjusted EBITDA, which is a non-IFRS financial measure.
 
OPC’s EBITDA is defined for each period as net profit/(loss) before depreciation and amortization, financing expenses, net, and income tax expense and Adjusted EBITDA is defined as net profit/(loss) before depreciation and amortization, financing expenses, net, share of depreciation and amortization and financing expenses, net, income tax expense, share of changes in fair value of derivative financial instruments, changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature and other expenses.  EBITDA and Adjusted EBITDA are not recognized under IFRS 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 provides useful information to investors and financial analysts in their review of the company’s, its subsidiaries’, and 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 is a reconciliation of OPC’s net loss to Adjusted EBITDA 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 three months ended June 30,
  
 
  
2023
    
2022
  
 
  
$ millions
  
Loss for the period
    
(11
)
    
(10
)
Depreciation and amortization
    
23
      
15
  
Financing expenses/(income), net
    
16
      
(9
)
Share of depreciation and amortization and financing expenses, net, included within share of profit/(losses) of associated companies, net
    
20
      
22
  
Income tax benefit
    
(3
)
    
(1
)
EBITDA
    
45
      
17
  
Share of changes in fair value of derivative financial instruments
    
(2
)
    
9
  
Changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature
    
3
      
-
  
Other expenses
    
1
      
-
  
Adjusted EBITDA
    
47
      
26
  

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 June 30, 2023 and December 31, 2022 (in $ millions):

 As at June 30, 2023
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
OPC-Tzomet
    
CPV Keenan
    
Others
    
Total
  
 
                                          
Debt (including accrued interest)
    
1
      
-
      
179
      
286
      
81
      
194
      
741
  
Cash and cash equivalents (including restricted cash used for debt service)
    
11
      
8
      
17
      
14
      
1
      
9
      
60
  
Net debt*
    
(10
)
    
(8
)
    
162
      
272
      
80
      
185
      
681
  


 As at December 31, 2022
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
OPC-Tzomet
    
CPV Keenan
    
Others
    
Total
  
 
                                          
Debt (including accrued interest)
    
527
      
-
      
190
      
237
      
88
      
1
      
1,043
  
Cash and cash equivalents (including restricted cash used for debt service)
    
166
      
7
      
16
      
3
      
1
      
98
      
291
  
Net debt*
    
361
      
(7
)
    
174
      
234
      
87
      
(97
)
    
752
  

*Net debt is defined as debt minus cash and cash equivalents and deposits and restricted cash.

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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 for each period as net profit/(loss) adjusted to exclude financial expenses/(income), net, income taxes, depreciation and amortization in order to reach EBITDA, and further adjusted to exclude impairments 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 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 (loss)/profit to Adjusted EBITDA for the periods presented.

   
For the three months ended June 30,
  
 
  
2023
    
2022
  
 
  
$ millions
  
(Loss)/profit for the period
    
(213
)
    
1,336
  
Depreciation and amortization
    
422
      
337
  
Financing expenses, net
    
104
      
28
  
Income tax (benefits)/expense
    
(59
)
    
400
  
EBITDA
    
254
      
2,101
  
Capital loss, beyond the ordinary course of business
    
21
      
-
  
Adjusted EBITDA
    
275
      
2,101
  

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