Kenon (KEN) 6-K Kenon Holdings Reports Q2 2021 Results and Additional Updates

Exhibit 99.2

Financial Information for the Three Months and Six Months Ended June 30, 2021 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 (Unaudited)

	June 30,		December 31,
	2021		2020
	$ millions
Current assets
Cash and cash equivalents		310		286
Short-term deposits and restricted cash		15		564
Trade receivables		38		48
Other current assets		40		22
Dividend receivable from ZIM		61		-
Asset held for sale		180		-
Total current assets		644		920
Non-current assets
Investment in ZIM (associated company)		661		297
Investment in OPC (associated companies)		548		-
Long-term investment		-		235
Long-term deposits and restricted cash		46		72
Long-term prepaid expenses		54		45
Long-term derivative instruments		12		-
Deferred taxes, net		25		7
Property, plant and equipment, net		950		819
Intangible assets, net		214		1
Right-of-use assets, net		94		86
Total non-current assets		2,604		1,562
Total assets		3,248		2,482
Current liabilities
Current maturities of loans from banks and others		50		47
Short-term derivative instruments		17		39
Trade and other payables		136		128
Current maturities of lease liabilities		17		14
Total current liabilities		220		228
Non-current liabilities
Long-term loans from banks and others		751		576
Debentures		291		296
Deferred taxes, net		111		94
Other non-current liabilities		24		1
Long-term derivative instruments		7		7
Long-term lease liabilities		14		4
Total non-current liabilities		1,198		978
Total liabilities		1,418		1,206
Equity
Share capital		602		602
Translation reserve		18		16
Capital reserve		16		(11	)
Accumulated profit		754		460
Equity attributable to owners of the Company		1,390		1,067
Non-controlling interests		440		209
Total equity		1,830		1,276
Total liabilities and equity		3,248		2,482

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,
	2021			2020			2021			2020
	$ millions						$ millions
Revenue		220			165			105			76
Cost of sales and services (excluding depreciation and amortization)		(158	)		(118	)		(79	)		(59	)
Depreciation and amortization		(27	)		(13	)		(14	)		(7	)
Gross profit		35			34			12			10
Selling, general and administrative expenses		(37	)		(18	)		(27	)		(10	)
Other expenses		(12	)		-			(12	)		-
Operating (loss)/profit		(14	)		16			(27	)		-
Financing expenses		(27	)		(14	)		(17	)		(9	)
Financing income		4			9			-			3
Financing expenses, net		(23	)		(5	)		(17	)		(6	)
Net (loss)/gains related to Qoros		(55	)		294			(54	)		278
Gain related to ZIM dilution		10			-			-			-
Share in profit/(losses) of associated companies, net
-          ZIM		419			5			247			8
-          Associates of OPC		(16	)		-			(4	)		-
-          Qoros		-			(6	)		-			(2	)
Profit before income taxes		321			304			145			278
Income tax benefit/(expense)		11			(5	)		9			-
Profit for the period		332			299			154			278
Attributable to:
Kenon’s shareholders		352			295			172			279
Non-controlling interests		(20	)		4			(18	)		(1	)
Profit for the period		332			299			154			278
Basic/diluted profit per share attributable to Kenon’s shareholders (in dollars):
Basic/diluted profit per share		6.54			5.47			3.20			5.19

3

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

	For the six months ended June 30,
	2021			2020
	$ millions
Cash flows from operating activities
Profit for the period		332			299
Adjustments:
Depreciation and amortization		29			14
Financing expenses, net		23			5
Share in (profit)/losses of associated companies, net		(403	)		1
Net losses/(gains) related to Qoros		55			(294	)
Gain related to ZIM dilution		(10	)		-
Loss on sale of other long-term liabilities		12			-
Share-based payments		1			1
Income tax (benefit)/expense		(11	)		5
		28			31
Change in trade and other receivables		7			17
Change in trade and other payables		(3	)		-
Change in employee benefits		11			-
		43			48
Dividend received from associated companies		7			-
Net cash provided by operating activities		50			48

4

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

	For the six months ended June 30,
	2021			2020
	$ millions
Cash flows from investing activities
Short-term deposits and restricted cash, net		541			17
Investment in long-term deposits, net		26			(21	)
Acquisition of subsidiary, less cash acquired		(656	)		-
Acquisition of associated company, less cash acquired		(8	)
Acquisition of property, plant and equipment		(91	)		(39	)
Reimbursement of right-of-use asset		2			-
Proceeds from sale of and/or distribution from investment in associated companies		46			-
Proceeds from sale of interest in Qoros		-			220
Long-term loans to an associate		(5	)
Long-term advance deposits and prepaid expenses		(4	)		(54	)
Payment of transactions in derivatives, net		(1	)		(1	)
Net cash (used in)/provided by investing activities		(150	)		122
Cash flows from financing activities
(Repayment of)/proceeds from long-term loans, debentures and lease liabilities, net		(97	)		2
Investments of holders of non-controlling interests in the capital of a subsidiary		168			-
Proceeds from issuance of share capital by a subsidiary to non-controlling interests, net of issuance expenses		105			-
Receipt of long-term loans from banks and others		75			-
Costs paid in advance in respect of taking out of loans		(2	)		-
Proceeds from issuance of debentures, net of issuance expenses		-			111
Short-term credit from banks and others, net		-			(6	)
Acquisition of non-controlling interests		-			(8	)
Payment in respect of derivative financial instruments, net		(3	)		(3	)
Dividends paid to holders of non-controlling interests		(2	)		(6	)
Dividends paid		(100	)		-
Interest paid		(19	)		(10	)
Net cash provided by financing activities		125			80
Increase in cash and cash equivalents		25			250
Cash and cash equivalents at beginning of the year		286			147
Effect of exchange rate fluctuations on balances of cash and cash equivalents		(1	)		1
Cash and cash equivalents at end of the period		310			398

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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, 2021
	OPC Israel			CPV Group			ZIM		Quantum			Other			Consolidated Results
	$ millions
Revenue		199			21			-		-			-			220
Depreciation and amortization		(23	)		(6	)		-		-			-			(29	)
Financing income		4			-			-		-			-			4
Financing expenses		(23	)		(4	)		-		-			-			(27	)
Net losses related to Qoros		-			-			-		(55	)		-			(55	)
Gain related to ZIM dilution		-			-			10		-			-			10
Share in (losses)/profits of associated companies		-			(16	)		419		-			-			403
(Loss)/profit before taxes		(2	)		(46	)		429		(55	)		(5	)		321
Income tax (expense)/benefit		(1	)		15			-		-			(3	)		11
(Loss)/profit after taxes		(3	)		(31	)		429		(55	)		(8	)		332

	For the six months ended June 30, 2020
	OPC			ZIM		Quantum			Other		Consolidated Results
	$ millions
Revenue		165			-		-			-		165
Depreciation and amortization		(14	)		-		-			-		(14	)
Financing income		1			-		-			8		9
Financing expenses		(14	)		-		-			-		(14	)
Net gains related to Qoros		-			-		294			-		294
Share in profits/(losses) of associated companies		-			5		(6	)		-		(1	)
Profit before taxes		11			5		288			-		304
Income tax expense		(5	)		-		-			-		(5	)
Profit after taxes		6			5		288			-		299

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	For the three months ended June 30, 2021
	OPC Israel			CPV Group			ZIM		Quantum			Other			Consolidated Results
	$ millions
Revenue		92			13			-		-			-			105
Depreciation and amortization		(12	)		(3	)		-		-			-			(15	)
Financing income		1			(1	)		-		-			-			-
Financing expenses		(13	)		(4	)		-		-			-			(17	)
Net losses related to Qoros		-			-			-		(54	)		-			(54	)
Share in (losses)/profits of associated companies		-			(4	)		247		-			-			243
(Loss)/profit before taxes		(14	)		(32	)		247		(54	)		(2	)		145
Income tax benefit/(expense)		2			10			-		-			(3	)		9
(Loss)/profit after taxes		(12	)		(22	)		247		(54	)		(5	)		154

____________________________________

	For the three months ended June 30, 2020
	OPC			ZIM		Quantum			Other			Consolidated Results
	$ millions
Revenue		76			-		-			-			76
Depreciation and amortization		(7	)		-		-			-			(7	)
Financing income		-			-		-			3			3
Financing expenses		(9	)		-		-			-			(9	)
Net gains related to Qoros		-			-		278			-			278
Share in profits/(losses) of associated companies		-			8		(2	)		-			6
(Loss)/profit before taxes		(5	)		8		276			(1	)		278
Income tax expense		-			-		-			-			-
(Loss)/profit after taxes		(5	)		8		276			(1	)		278

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Information regarding associated companies

	Carrying amounts of investment in associated companies				Equity in the net profit / (losses) of associated companies
	as at				for the six months ended						for the three months ended
	June 30,		December 31,		June 30,			June 30,			June 30,			June 30,
	2021		2020		2021			2020			2021			2020
	$ millions				$ millions						$ millions
CPV Fairview LLC		168		-		(3	)		-			(1	)		-
CPV Towantic LLC		115		-		6			-			3			-
CPV Maryland LLC		58		-		(1	)		-			(1	)		-
CPV Shore Holdings LLC		69		-		4			-			5			-
CPV Valley Holdings LLC		64		-		(22	)		-			(10	)		-
CPV Three Rivers LLC		64		-		-			-			-			-
Others		10		-		-			-			-			-
		548		-		(16	)		-			(4	)		-
ZIM		661		297		419			5			247			9
Qoros*		-		-		-			(6	)		-			(2	)
		1,209		297		403			(1	)		243			7

 *Qoros was accounted for as an associated company until April 2020, when we reduced our interest in Qoros from 24% to 12%.

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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,
	2021			2020			2021			2020
	$ millions						$ millions
Revenue		220			165			105			76
Cost of sales (excluding depreciation and amortization)		(158	)		(118	)		(79	)		(59	)
Depreciation and amortization		(27	)		(13	)		(14	)		(7	)
Gross profit		35			34			12			10
Selling, general and administrative expenses		(32	)		(10	)		(25	)		(6	)
Other expenses		(12	)		-			(12	)		-
Operating profit		(9	)		24			(25	)		4
Financing expenses		(27	)		(14	)		(17	)		(9	)
Financing income		4			1			-			-
Financing expenses, net		(23	)		(13	)		(17	)		(9	)
Share of losses of associated companies, net		(16	)		-			(4	)		-
(Loss)/profit before income taxes		(48	)		11			(46	)		(5	)
Income taxes benefit/(expense)		14			(5	)		12			-
(Loss)/profit for the period		(34	)		6			(34	)		(5	)
Attributable to:
Equity holders of the company		(24	)		3			(26	)		(6	)
Non-controlling interest		(10	)		3			(8	)		1
(Loss)/profit for the period		(34	)		6			(34	)		(5	)

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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,
	2021			2020			2021			2020
	$ millions						$ millions
Cash flows provided by operating activities		57			51			33			27
Cash flows used in investing activities		(149	)		(99	)		(51	)		(10	)
Cash flows provided by/(used in) financing activities		225			81			(29	)		46
Increase/(decrease) in cash and cash equivalents		133			33			(47	)		63
Cash and cash equivalents at end of the period		194			145			194			145

Summary Data from OPC’s Consolidated Statement of Financial Position (Unaudited)

	As at
	June 30, 2021		December 31, 2020
	$ millions
Total financial liabilities1		1,094		921
Total monetary assets2		254		698
Investment in associated companies		548		-
Total equity attributable to the owners		650		520
Total assets		2,225		1,734

1.	Including loans from banks and others and debentures
2.	Including cash and cash equivalents, term deposits and restricted cash

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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 defines 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. 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 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 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 Adjusted EBITDA for the periods presented. Other companies may calculate Adjusted EBITDA differently, and therefore this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies.

	For the three months ended June 30,
	2021			2020
	$ millions
Net loss for the period		(34	)		(5	)
Depreciation and amortization		15			7
Financing expenses, net		17			9
Share of losses of associated companies, net		4			-
Income tax benefit		(12	)		-
Adjusted EBITDA		(10	)		11
Proportionate share of EBITDA of associated companies		26	1		-

¹ Reconciliation of net loss to EBITDA for associated companies:

	For the three months ended June 30, 2021
	$ millions
	Total
Share of net loss for the period		(4	)
Share of depreciation and amortization		10
Share of financing expenses, net		20
Share of EBITDA		26

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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, 2021 and December 31, 2020 (in $ millions):

As at June 30, 2021	OPC Energy		OPC-Rotem		OPC-Hadera		OPC-Tzomet		Keenan		Other		Total
Debt (including accrued interest)		300		326		212		79		68		109		1,094
Cash and cash equivalents and short-term deposits		94		37		-		16		2		45		194
Debt service reserves (out of restricted cash)		-		25		14		-		-		-		39
Other restricted cash		5		15		1		-		-		-		21

As at December 31, 2020	OPC Energy		OPC-Rotem		OPC-Hadera		Other		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

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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 as for each period as net profit before depreciation and amortization, financing expenses, net, income tax expense, 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 three months ended June 30,
	2021		2020
	$ millions
Net profit for the period		888		25
Depreciation and amortization		175		74
Financing expenses, net		46		40
Income tax expense		224		4
EBITDA		1,333		143
Non-recurring expenses		2		2
Adjusted EBITDA		1,335		145

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