Kenon 6K Holdings Reports Q2 2020 Results and Additional Updates | KEN 2 Sep 20

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

Kenon (KEN) 6-KKenon Holdings Reports Q2 2020 Results and Additional Updates