EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2
 
Financial Information for the Years Ended December 31, 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 as of December 31, 2023 and 2022

   
December 31,
    
December 31,
  
   
2023
    
2022
  
   
$ millions
  
Current assets
            
Cash and cash equivalents
    
697
      
535
  
Short-term deposits and restricted cash
    
1
      
46
  
Trade receivables
    
68
      
74
  
Short-term derivative instruments
    
3
      
3
  
Other investments
    
216
      
345
  
Other current assets
    
111
      
59
  
Total current assets
    
1,096
      
1,062
  
Non-current assets
                
Investment in ZIM (associated company)
    
-
      
427
  
Investment in OPC’s associated companies
    
703
      
652
  
Long-term restricted cash
    
16
      
15
  
Long-term derivative instruments
    
14
      
16
  
Deferred taxes, net
    
16
      
6
  
Property, plant and equipment, net
    
1,715
      
1,223
  
Intangible assets, net
    
321
      
221
  
Long-term prepaid expenses and other non-current assets
    
52
       23*
  
Right-of-use assets, net
    
175
      
127*
  
Total non-current assets
    
3,012
      
2,710
  
Total assets
    
4,108
      
3,772
  
Current liabilities
                
Current maturities of loans from banks and others
    
170
      
39
  
Trade and other payables
    
182
      
134
  
Short-term derivative instruments
    
2
      
1
  
Current tax liabilities
    
-
      
1
  
Deferred taxes
    
-
      
1
  
Current maturities of lease liabilities
    
5
      
17
  
Total current liabilities
    
359
      
193
  
Non-current liabilities
                
Long-term loans from banks and others
    
906
      
610
  
Debentures
    
454
      
513
  
Deferred taxes, net
    
137
      
98
  
Other non-current liabilities
    
110
      
42
  
Long-term derivative instruments
    
16
       -
 
Long-term lease liabilities
    
56
      
20
  
Total non-current liabilities
    
1,679
      
1,283
  
Total liabilities
    
2,038
      
1,476
  
Equity
                
Share capital
    
50
      
50
  
Translation reserve
    
(4
)
    
1
  
Capital reserve
    
70
      
42
  
Accumulated profit
    
1,087
      
1,505
  
Equity attributable to owners of the Company
    
1,203
      
1,598
  
Non-controlling interests
    
867
      
698
  
Total equity
    
2,070
      
2,296
  
Total liabilities and equity
    
4,108
      
3,772
  

* Reclassified
2
 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss for the Years Ended December 31, 2023 and 2022
 
   
For the year ended December 31,
  
   
2023
    
2022
  
   
$ millions
  
Revenue
    
692
      
574
  
Cost of sales and services (excluding depreciation and amortization)
    
(494
)
    
(417
)
Depreciation and amortization
    
(78
)
    
(57
)
Gross profit
    
120
      
100
  
Selling, general and administrative expenses
    
(86
)
    
(100
)
Other income
    
8
      
3
  
Operating profit
    
42
      
3
  
Financing expenses
    
(66
)
    
(50
)
Financing income
    
39
      
45
  
Financing expenses, net
    
(27
)
    
(5
)
Losses related to ZIM
    
(1
)
    
(728
)
Share in (losses)/profit of associated companies, net
                
-          ZIM
    
(266
)
    
1,033
  
-          OPC’s associated companies
    
66
      
85
  
(Loss)/profit before income taxes
    
(186
)
    
388
  
Income tax expense
    
(25
)
    
(38
)
(Loss)/profit for the period
    
(211
)
    
350
  
Attributable to:
                
Kenon’s shareholders
    
(236
)
    
313
  
Non-controlling interests
    
25
      
37
  
(Loss)/profit for the period
    
(211
)
    
350
  
                 
Basic/diluted (loss)/profit per share attributable to Kenon’s shareholders (in dollars):
                
Basic/diluted (loss)/profit per share
    
(4.42
)
    
5.80
  
 
3
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

   
For the year ended December 31,
  
   
2023
    
2022
  
   
$ millions
  
Cash flows from operating activities
            
(Loss)/profit for the period
    
(211
)
    
350
  
Adjustments:
                
Depreciation and amortization
    
91
      
63
  
Financing expenses, net
    
27
      
5
  
Losses related to ZIM
    
1
      
728
  
Share in losses/(profit) of associated companies, net
    
200
      
(1,118
)
Share-based payments
    
(2
)
    
20
  
Other expenses, net
    
5
      
-
  
Income tax expense
    
25
      
38
  
     
136
      
86
  
Change in trade and other receivables
    
(3
)
    
(29
)
Change in trade and other payables
    
(9
)
    
(11
)
Cash generated from operating activities
    
124
      
46
  
Income taxes paid, net
    
(2
)
    
(2
)
Dividends received from associated companies
                
-          ZIM
    
151
      
727
  
-          OPC’s associated company
    
4
          
Net cash provided by operating activities
    
277
      
771
  

4
 
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022

   
For the year ended December 31,
  
   
2023
    
2022
  
   
$ millions
  
Cash flows from investing activities
            
Short-term deposits and restricted cash, net
    
50
      
(46
)
Short-term collaterals deposits, net
    
30
      
(19
)
Investment in long-term deposits, net
    
-
      
13
  
Investment in associated companies, less cash acquired
    
(8
)
    
(3
)
Acquisition of subsidiary, less cash acquired
    
(327
)
    
-
  
Acquisition of property, plant and equipment, intangible assets and payment of
    long-term advance deposits and prepaid expenses
    
(332
)
    
(281
)
Proceeds from sale of interest in ZIM
    
-
      
464
  
Proceeds from distribution from associated company
    
3
      
4
  
Proceeds from sale of subsidiary, net of cash disposed off
    
2
      
-
  
Proceeds from sale of other investments
    
194
      
309
  
Purchase of other investments
    
(50
)
    
(651
)
Long-term loans to an associate
    
(24
)
    
-
  
Interest received
    
28
      
6
  
Proceeds from transactions in derivatives, net
    
2
      
1
  
Net cash used in investing activities
    
(432
)
    
(203
)
                 
Cash flows from financing activities
                
Repayment of long-term loans, debentures and lease liabilities
    
(168
)
    
(56
)
Proceed from short-term loans from banking corporations
    
62
      
102
  
Proceed from Veridis transaction
    
129
      
-
  
Proceeds from issuance of share capital by a subsidiary to non-controlling
    interests, net of issuance expenses
    
-
      
193
  
Investments from holders of non-controlling interests in the capital of a subsidiary
    
64
      
37
  
Tax equity investment
    
82
      
-
  
Receipt from long-term loans
    
392
      
-
  
Proceeds from/(payment) in respect of derivative financial instruments, net
    
2
      
(1
)
Repurchase of shares
    
(28
)
    
-
  
Costs paid in advance in respect of taking out of loans
    
(20
)
    
(3
)
Cash distribution and dividends paid
    
(150
)
    
(741
)
Interest paid
    
(41
)
    
(25
)
Net cash provided by/(used in) financing activities
    
324
      
(494
)
                 
Increase in cash and cash equivalents
    
169
      
74
  
Cash and cash equivalents at beginning of the year
    
535
      
475
  
Effect of exchange rate fluctuations on balances of cash and cash equivalents
    
(7
)
    
(14
)
Cash and cash equivalents at end of the period
    
697
      
535
  

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, 2023
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue
    
619
      
73
      
-
      
-
      
692
  
Depreciation and amortization
    
66
      
25
      
-
      
-
      
91
  
Financing income
    
6
      
6
      
-
      
27
      
39
  
Financing expenses
    
(48
)
    
(17
)
    
-
      
(1
)
    
(66
)
Losses related to ZIM
    
-
      
-
      
(1
)
    
-
      
(1
)
Share in profit/(loss) of associated companies
    
-
      
66
      
(266
)
    
-
      
(200
)
Profit/(loss) before taxes
    
49
      
17
      
(267
)
    
15
      
(186
)
Income tax expense
    
(14
)
    
(5
)
    
-
      
(6
)
    
(25
)
Profit/(loss) for the period
    
35
      
12
      
(267
)
    
9
      
(211
)
Adjusted EBITDA
    
157
      
147
      
-
      
(10
)
    
294
  

 
  
For the year ended December 31, 2022
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue
    
517
      
57
      
-
      
-
      
574
  
Depreciation and amortization
    
(47
)
    
(16
)
    
-
      
-
      
(63
)
Financing income
    
10
      
25
      
-
      
10
      
45
  
Financing expenses
    
(42
)
    
(7
)
    
-
      
(1
)
    
(50
)
Gains related to ZIM
    
-
      
-
      
(728
)
    
-
      
(728
)
Share in profit of associated companies
    
-
      
85
      
1,033
      
-
      
1,118
  
Profit/(loss) before taxes
    
24
      
61
      
305
      
(2
)
    
388
  
Income tax expense
    
(10
)
    
(10
)
    
-
      
(18
)
    
(38
)
Profit/(loss) for the period
    
14
      
51
      
305
      
(20
)
    
350
  
Adjusted EBITDA
    
103
      
147
      
-
      
(11
)
    
239
  

6
 
Appendix B
 
Summary of OPC consolidated financial information
 
OPC’s Consolidated Statements of Profit or Loss
 
   
For the year ended December 31,
  
   
2023
    
2022
  
   
$ millions
  
Revenue
    
692
      
574
  
Cost of sales (excluding depreciation and amortization)
    
(494
)
    
(417
)
Depreciation and amortization
    
(78
)
    
(57
)
Gross profit
    
120
      
100
  
Selling, general and administrative expenses
    
(73
)
    
(86
)
Other income, net
    
6
      
-
  
Operating profit
    
53
      
14
  
Financing expenses
    
(65
)
    
(49
)
Financing income
    
12
      
35
  
Financing expenses, net
    
(53
)
    
(14
)
Share in profit of associated companies, net
    
66
      
85
  
Profit before income taxes
    
66
      
85
  
Income tax expense
    
(19
)
    
(20
)
Profit for the period
    
47
      
65
  
                 
Attributable to:
                
Equity holders of the company
    
40
      
50
  
Non-controlling interest
    
7
      
15
  
Profit for the period
    
47
      
65
  
 
7

Summary Data from OPC’s Consolidated Statement of Cash Flows
 
   
For the year ended December 31,
  
   
2023
    
2022
  
   
$ millions
  
Cash flows provided by operating activities
    
135
      
63
  
Cash flows used in investing activities
    
(594
)
    
(329
)
Cash flows provided by financing activities
    
503
      
286
  
Increase in cash and cash equivalents
    
44
      
20
  
Cash and cash equivalents at end of the period
    
278
      
241
  

Summary Data from OPC’s Consolidated Statement of Financial Position
 
 
  
As at
  
 
  
December 31, 2023
    
December 31, 2022
  
 
  
$ millions
  
Total financial liabilities1
    
1,530
      
1,163
  
Total monetary assets2
    
278
      
287
  
Investment in associated companies
    
703
      
652
  
Total equity attributable to the owners
    
1,061
      
997
  
Total assets
    
3,479
      
2,709
  
 
1.
Including loans from banks and others and debentures
2.
Including cash and cash equivalents, term deposits and restricted cash
 
8

Appendix C
 
Definition of OPC’s EBITDA and 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, share of depreciation and amortization and financing expenses, net, included within share of profit of associated companies, net and income tax expense. OPC’s Adjusted EBITDA is defined as net profit/(loss) before depreciation and amortization, financing expenses, net, share of depreciation and amortization and financing expenses, net, included within share of profit of associated companies, net, income tax expense, changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature, other income/(expenses) and share of changes in fair value of derivative financial instruments.  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 EBITDA and 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 profit to EBITDA and 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 year ended December 31,
  
 
  
2023
    
2022
  
 
  
$ millions
  
Profit for the period
    
47
      
65
  
Depreciation and amortization
    
91
      
63
  
Financing expenses, net
    
53
      
14
  
Share of depreciation and amortization and financing expenses, net, included within share of profit of associated companies, net
    
91
      
83
  
Income tax expense
    
19
      
20
  
EBITDA
    
301
      
245
  
Changes in net expenses, not in the ordinary course of business and/or of a non-recurring nature
    
5
      
2
  
Share of changes in fair value of derivative financial instruments
    
(2
)
    
3
  
Adjusted EBITDA
    
304
      
250
  

9

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

As of December 31, 2023
  
OPC Energy
    
OPC-Rotem
    
OPC-Hadera
    
OPC-Tzomet
    
OPC-Gat
    
CPV- Keenan
    
Others
    
Total
  
 
                                                
Debt (including accrued interest)
    
56
      
-
      
177
      
306
      
120
      
79
      
161
      
899
  
Cash and cash equivalents (including restricted cash used for debt service)
    
44
      
2
      
27
      
26
      
3
      
-
      
93
      
195
  
Derivative financial instruments for hedging principal and/or interest
    
-
      
-
      
10
      
-
      
-
      
5
       (1 )    
14
  
Net debt*
    
12
      
(2
)
    
140
      
280
      
116
      
73
       69      
688
  

As of 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.

10

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 EBITDA for each period as (loss)/profit adjusted to exclude depreciation and amortization, financing expenses, net and income tax (benefits)/expense. ZIM’s Adjusted EBITDA is defined as (loss)/profit adjusted to exclude depreciation and amortization, financing expenses, net, income tax (benefits)/expense, impairments of assets, capital losses/(gains) 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 (loss)/profit to Adjusted EBITDA for the periods presented.

   
For the year ended December 31,
  
 
  
2023
    
2022
  
 
  
$ millions
  
(Loss)/profit for the period
    
(2,688
)
    
4,629
  
Depreciation and amortization
    
1,472
      
1,396
  
Financing expenses, net
    
305
      
109
  
Income tax (benefits)/expense
    
(128
)
    
1,398
  
EBITDA
    
(1,039
)
    
7,532
  
Impairment of assets
    
2,063
      
-
  
Capital losses/(gains) beyond the ordinary course of business
    
20
      
(1
)
Expenses related to legal contingencies
    
5
      
10
  
Adjusted EBITDA
    
1,049
      
7,541
  

11