Kenon (KEN) 6-K Kenon Holdings Reports Q1 2020 Results and Additional Updates

Exhibit 99.2

Financial Information for the Three Months Ended March 31, 2020 of Kenon and OPC and

Reconciliation of Certain non-IFRS Financial Information

Table of Contents

Appendix A

Summary of Kenon’s Consolidated Financial Information

Kenon Holdings Ltd and subsidiaries
Consolidated Statements of Financial Position as of March 31, 2020 and December 31, 2019

	As of March 31,		As of December 31,
	2020		2019
	(Unaudited)
	$ millions
Current assets
Cash and cash equivalents		111		147
Short-term deposits and restricted cash		22		33
Trade receivables		29		39
Other current assets		61		40
Asset held for sale		70		70
Total current assets		293		329
Non-current assets
Investments in associated companies		118		120
Long-term deposits and restricted cash		91		77
Long-term prepaid expenses		87		30
Long-term derivative instruments		2		2
Other non-current assets		64		58
Deferred payment receivable		208		204
Deferred taxes, net		2		2
Property, plant and equipment, net		668		668
Intangible assets, net		1		1
Right-of-use assets, net		16		17
Total non-current assets		1,257		1,179
Total assets		1,550		1,508
Current liabilities
Short-term loans and current maturities		105		46
Trade payables		34		36
Short-term derivative instruments		6		6
Current tax liabilities		3		-
Other current liabilities		15		16
Current maturities of lease liabilities		1		1
Total current liabilities		164		105
Non-current liabilities
Long-term loans from banks and others		484		504
Debentures		71		73
Deferred taxes, net		79		79
Non-current tax liabilities		28		29
Other non-current liabilities		1		1
Long-term derivative instruments		8		-
Long-term lease liabilities		5		5
Total non-current liabilities		676		691
Total liabilities		840		796
Equity
Share capital		602		602
Translation reserve		16		18
Capital reserve		5		14
Accumulated profit/(loss)		6		(11	)
Equity attributable to owners of the Company		629		623
Non-controlling interests		81		89
Total equity		710		712
Total liabilities and equity		1,550		1,508

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Kenon Holdings Ltd and subsidiaries
Unaudited Consolidated Statements of Profit & Loss for the three months ended March 31, 2020 and 2019

	For the three months ended March 31,
	2020			2019
	$ millions
Revenue		89			97
Cost of sales and services (excluding depreciation)		(58	)		(61	)
Depreciation		(7	)		(7	)
Gross profit		24			29
Selling, general and administrative expenses		(8	)		(10	)
Financing expenses		(7	)		(6	)
Financing income		7			4
Financing expenses, net		-			(2	)
Fair value gain/(loss) on put option		10			(5	)
Recovery of financial guarantee		6			-
Share in losses of associated companies, net of tax		(7	)		(13	)
Profit/(loss) before income taxes		25			(1	)
Income taxes		(5	)		(5	)
Profit/(loss) for the period from continuing operations		20			(6	)
Loss for the period from discontinued operations		-			(1	)
Profit/(loss) for the period		20			(7	)
Attributable to:
Kenon's shareholders		15			(12	)
Non-controlling interests		5			5
Profit/(loss) for the period		20			(7	)
Basic/diluted profit/(loss) per share attributable to Kenon's shareholders (in dollars):
Basic/Diluted profit/(loss) per share		0.28			(0.24	)
Basic/Diluted profit/(loss) per share from continuing operations		0.28			(0.23	)
Basic/Diluted loss per share from discontinued operations		-			(0.01	)

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Kenon Holdings Ltd and subsidiaries
Unaudited Consolidated Statements of Cash Flows
For the three months ended March 31, 2020 and 2019

	For the three months ended March 31,
	2020			2019
	$ millions
Cash flows from operating activities
Profit/(loss) for the period		20			(7	)
Adjustments:
Depreciation and amortization		7			7
Financing expenses, net		-			2
Share in losses of associated companies, net of tax		7			13
Recovery of financial guarantee		(6	)		-
Fair value (gain)/loss on put option		(10	)		5
Share-based payments		-			1
Income taxes		5			5
		23			26
Change in trade and other receivables		4			7
Change in trade and other payables		(7	)		15
		20			48
Income taxes paid, net		-			(1	)
Net cash provided by operating activities		20			47

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Kenon Holdings Ltd and subsidiaries
Unaudited Consolidated Statement of Cash Flows, continued
For the three months ended March 31, 2020 and 2019

	For the three months ended March 31,
	2020			2019
	$ millions
Cash flows from investing activities
Short-term deposits and loans, net		11			-
Investment in long-term deposits, net		(16	)		(4	)
Acquisition of property, plant and equipment		(28	)		(8	)
Long-term prepaid expenses		(55	)		-
Payment of transactions in derivatives, net		(1	)		-
Net cash used in investing activities		(89	)		(12	)
Cash flows from financing activities
Repayment of long-term loans, debentures, derivative financial instruments and lease liabilities		(4	)		(3	)
Short-term credit from banks and others, net		59			(1	)
Acquisition of non-controlling interests		(8	)		-
Payment in respect of derivative financial instruments, net		(1	)		-
Dividends paid to holders of non-controlling interests		(6	)		-
Interest paid		(4	)		(4	)
Net cash provided by/(used in) financing activities		36			(8	)
(Decrease)/increase in cash and cash equivalents		(33	)		27
Cash and cash equivalents at beginning of the period		147			131
Effect of exchange rate fluctuations on balances of cash and cash equivalents		(3	)		3
Cash and cash equivalents at end of the period		111			161

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Information regarding reportable segments

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

	For the three months ended March 31, 2020
	OPC			Quantum1			Other2			Total
	$ millions
Revenue		89			-			-			89
Depreciation and amortization		(7	)		-			-			(7	)
Financing income		2			-			5			7
Financing expenses		(7	)		-			-			(7	)
Fair value gain on put option		-			10			-			10
Recovery of financial guarantee		-			6			-			6
Share in losses of associated companies		-			(4	)		(3	)		(7	)
Profit / (Loss) before taxes		15			12			(2	)		25
Income taxes		(4	)		-			(1	)		(5	)
Profit / (Loss) from continuing operations		11			12			(3	)		20

(1) Quantum is a wholly-owned subsidiary of Kenon and 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 March 31, 2019
	OPC			Quantum1			Other2			Total
				$ millions
Revenue		97			-			-			97
Depreciation and amortization		(7	)		-			-			(7	)
Financing income		-			-			4			4
Financing expenses		(5	)		-			(1	)		(6	)
Fair value loss on put option		-			(5	)		-			(5	)
Share in losses of associated companies		-			(5	)		(8	)		(13	)
Profit / (Loss) before taxes		18			(10	)		(9	)		(1	)
Income taxes		(4	)		-			(1	)		(5	)
Profit / (Loss) from continuing operations		14			(10	)		(10	)		(6	)

                                                                                  

(1) Quantum is a wholly-owned subsidiary of Kenon and 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.

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Information regarding associated companies

	Assets held for sale				Carrying amounts of investment inassociated companies				Equity in the net losses of associated companies
	as of				as of				for the period ended
	March 31,		December 31,		March 31,		December 31,		March 31,			March 31,
	2020		2019		2020		2019		2020			2019
	$ millions				$ millions				$ millions
ZIM		-		-		82		84		(3	)		(8	)
Qoros		70		70		36		36		(4	)		(5	)
		70		70		118		120		(7	)		(13	)

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Appendix B

Summary of OPC’s Consolidated Financial Information

OPC’s Unaudited Consolidated Statement of Profit or Loss

	For the three months ended March 31,
	2020			2019
	$ millions
Revenue		89			97
Cost of sales (excluding depreciation and amortization)		(58	)		(61	)
Depreciation and amortization		(7	)		(7	)
Gross profit		24			29
General, selling and administrative expenses		(4	)		(6	)
Financing expenses, net		(5	)		(5	)
Profit before taxes		15			18
Taxes on income		(4	)		(4	)
Net profit for the period		11			14
Attributable to:
Equity holders of the company		8			11
Non-controlling interest		3			3
Net profit for the period		11			14

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Summary Data from OPC’s Unaudited Consolidated Statement of Cash Flows

	For the three months ended March 31,
	2020			2019
	$ millions
Cash flows provided by operating activities		24			52
Cash flows used in investing activities		(89	)		(12	)
Cash flows used in financing activities		35			8
(Decrease)/increase in cash and cash equivalents		(30	)		32
Cash and cash equivalents at end of the period		78			124
Investments in property, plant and equipment		15			8
Total depreciation and amortization		7			7

Summary Data from OPC’s Consolidated Statement of Financial Position

	As at
	March 31, 2020		December 31, 2019
	$ millions
Total financial liabilities1		660		622
Total liquid assets2		118		152
Total equity attributable to the owners		216		228
Total assets		1,039		1,011

1.	Including loans from banks and others and debentures
2.	Including cash and cash equivalents, short-term deposits and debt service reserves (out of restricted cash)

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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 three months ended March 31, 2020
	$ millions
Net profit for the period		11
Depreciation and amortization		7
Financing expenses, net		5
Income tax expense		4
EBITDA		27

	For the three months ended March 31, 2019
	$ millions
Net profit for the period		14
Depreciation and amortization		7
Financing expenses, net		5
Income tax expense		4
EBITDA		30

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Appendix D

Summary Financial Information of OPC’s Subsidiaries

The table below sets forth debt, cash and cash equivalents and short-term deposits, and debt service reserves for OPC’s subsidiaries as of March 31, 2020 (in $ millions): 

As at March 31, 2020	OPC-Rotem		OPC-Hadera		OPC Energy		Other		Total
Debt (including accrued interest)		327		185		142		6		660
Cash and cash equivalents and short-term deposits		28		1		43		6		78
Debt service reserves (out of the restricted cash)		21		-		19		-		40

The table below sets forth debt, cash and cash equivalents and short-term 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 the restricted cash)		22		-		19		-		41

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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 Hadera energy center (kWh in millions):

	For the three months ended March 31.
	2020		2019
Sales to private customers		900		969
Sales to the system administrator		97		43
Total sales		997		1,012

	For the three months ended March 31
	2020		2019
Net generation of electricity		987		984
Purchase of electricity from the system administrator		10		28
Total volume of electricity generated and purchases from the system administrator		997		1,012

	For the three months ended March 31
	2020				2019
	Availability  (%)		Net generation (kWh in millions)		Availability  (%)		Net generation (kWh in millions)
OPC-Rotem		100.0%		966		100.0%		961
OPC-Hadera		88.4%		22		92.8%		23

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