EX-99.2 3 exhibit_99-2.htm EXHIBIT 99.2
Exhibit 99.2
 
Financial Information for the Years Ended December 31, 2024 and 2023 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 A

Summary Kenon consolidated financial information

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Financial Position as of December 31, 2024 and 2023

   
December 31,
    
December 31,
  
   
2024
    
2023
  
   
$ millions
  
Current assets
            
Cash and cash equivalents
    
1,016
      
697
  
Short-term deposits and restricted cash
    
-
      
1
  
Trade receivables
    
80
      
68
  
Short-term derivative instruments
    
-
      
3
  
Other investments
    
143
      
216
  
Other current assets
    
24
      
111
  
Total current assets
    
1,263
      
1,096
  
Non-current assets
                
Investment in ZIM (associated company)
    
-
      
-
  
Investment in OPC’s associated companies
    
1,459
      
703
  
Long-term restricted cash
    
16
      
16
  
Long-term derivative instruments
    
28
      
14
  
Deferred taxes, net
    
3
      
16
  
Property, plant and equipment, net
    
1,156
      
1,715
  
Intangible assets, net
    
72
      
321
  
Long-term prepaid expenses and other non-current assets
    
41
      
52
  
Right-of-use assets, net
    
175
      
175
  
Total non-current assets
    
2,950
      
3,012
  
Total assets
    
4,213
      
4,108
  
Current liabilities
                
Current maturities of loans from banks and others
    
85
      
170
  
Trade and other payables
    
94
      
182
  
Short-term derivative instruments
    
-
      
2
  
Current maturities of lease liabilities
    
4
      
5
  
Total current liabilities
    
183
      
359
  
Non-current liabilities
                
Long-term loans from banks and others
    
727
      
906
  
Debentures
    
456
      
454
  
Deferred taxes, net
    
148
      
137
  
Other non-current liabilities
    
31
      
110
  
Long-term derivative instruments
    
-
      
16
  
Long-term lease liabilities
    
9
      
56
  
Total non-current liabilities
    
1,371
      
1,679
  
Total liabilities
    
1,554
      
2,038
  
Equity
                
Share capital
    
50
      
50
  
Translation reserve
    
3
      
(4
)
Capital reserve
    
64
      
70
  
Accumulated profit
    
1,491
      
1,087
  
Equity attributable to owners of the Company
    
1,608
      
1,203
  
Non-controlling interests
    
1,051
      
867
  
Total equity
    
2,659
      
2,070
  
Total liabilities and equity
    
4,213
      
4,108
  

2

Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Profit or Loss for the Years Ended December 31, 2024 and 2023
 
   
For the year ended December 31,
  
   
2024
    
2023
  
   
$ millions
  
Revenue
    
751
      
692
  
Cost of sales and services (excluding depreciation and amortization)
    
(522
)
    
(494
)
Depreciation and amortization
    
(85
)
    
(78
)
Gross profit
    
144
      
120
  
Selling, general and administrative expenses
    
(96
)
    
(86
)
Other income,net
    
-
      
8
  
Operating profit
    
48
      
42
  
Financing expenses
    
(115
)
    
(66
)
Financing income
    
47
      
39
  
Financing expenses, net
    
(68
)
    
(27
)
Gain on loss of control in the CPV Renewable
    
69
      
-
  
Share in profit of OPC’s associated companies, net
    
45
      
66
  
Profit before income taxes
    
94
      
81
  
Income tax expense
    
(41
)
    
(25
)
Profit for the year from continuing operations
    
53
      
56
  
Profit/(loss) for the year from divestment of ZIM
    
581
      
(267
)
Profit/(loss) for the year
    
634
      
(211
)
Attributable to:
                
Kenon’s shareholders
    
598
      
(236
)
Non-controlling interests
    
36
      
25
  
Profit/(loss) for the period
    
634
      
(211
)
                 
Basic/diluted profit/(loss) per share attributable to Kenon’s shareholders (in dollars):
                
Basic/diluted profit/(loss) per share
    
11.34
      
(4.42
)
Basic/diluted profit per share from continuing operations
    
0.31
      
0.58
  
Basic/diluted profit/(loss) per share from divestment of ZIM
    
11.03
      
(5.00
)
 
3
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023

   
For the year ended December 31,
  
   
2024
    
2023
  
   
$ millions
  
Cash flows from operating activities
            
Profit/(loss) for the period
    
634
      
(211
)
Adjustments:
                
Depreciation and amortization
    
93
      
91
  
Financing expenses, net
    
68
      
27
  
Share in profit of OPC’s associated companies, net
    
(45
)
    
(66
)
Gain on loss of control in the CPV Renewable
    
(69
)
    
-
  
(Gain)/losses related to ZIM
    
(581
)
    
267
  
Share-based payments
    
10
      
(2
)
Other expenses, net
    
15
      
5
  
Income tax expense
    
41
      
25
  
     
166
      
136
  
Change in trade and other receivables
    
(17
)
    
(3
)
Change in trade and other payables
    
4
      
(9
)
Cash generated from operating activities
    
153
      
124
  
Income taxes paid, net
    
(18
)
    
(2
)
Net dividends received from
                
-          ZIM
    
66
      
151
  
-          OPC’s associated company
    
64
      
4
  
Net cash provided by operating activities
    
265
      
277
  

4
Kenon Holdings Ltd. and its subsidiaries
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023

   
For the year ended December 31,
  
   
2024
    
2023
  
   
$ millions
  
Cash flows from investing activities
            
Short-term deposits and restricted cash, net
    
(2
)
    
50
  
Short-term collaterals deposits, net
    
3
      
30
  
Investment in associated companies, less cash acquired
    
(201
)
    
(8
)
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
    
(341
)
    
(332
)
Proceeds from sale of interest in ZIM
    
501
      
-
  
Proceeds from gain on loss of control in the CPV Renewable
    
36
          
Proceeds from distribution from associated company
    
26
      
3
  
Proceeds from sale of subsidiary, net of cash disposed off
    
3
      
2
  
Proceeds from sale of other investments
    
82
      
194
  
Purchase of other investments
    
-
      
(50
)
Long-term loans to an associate
    
-
      
(24
)
Interest received
    
28
      
28
  
Proceeds from transactions in derivatives, net
    
1
      
2
  
Net cash provided by/(used in) investing activities
    
136
      
(432
)
                 
Cash flows from financing activities
                
Repayment of long-term loans, debentures and lease liabilities
    
(531
)
    
(168
)
(Repayment)/proceed from short-term loans from banking corporations
    
(55
)
    
62
  
Proceed from Veridis transaction
    
-
      
129
  
Proceeds from issuance of share capital by a subsidiary to non-controlling interests, net of issuance expenses
    
99
      
-
  
Investments from holders of non-controlling interests in the capital of a subsidiary
    
49
      
64
  
Tax equity investment
    
41
      
82
  
Receipt from long-term loans
    
532
      
372
  
Proceeds from/(payment) in respect of derivative financial instruments, net
    
2
      
2
  
Repurchase of shares
    
(11
)
    
(28
)
Cash distribution and dividends paid
    
(201
)
    
(150
)
Proceeds from issuance of debentures, less issuance expenses
    
52
      
-
  
Interest paid
    
(61
)
    
(41
)
Net cash (used in)/provided by financing activities
    
(84
)
    
324
  
                 
Increase in cash and cash equivalents
    
317
      
169
  
Cash and cash equivalents at beginning of the year
    
697
      
535
  
Effect of exchange rate fluctuations on balances of cash and cash equivalents
    
2
      
(7
)
Cash and cash equivalents at end of the period
    
1,016
      
697
  

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, 2024
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue
    
625
      
126
      
-
      
-
      
751
  
Cost of sales (excluding depreciation and amortization)
    
446
      
76
      
-
      
-
      
522
  
Depreciation and amortization
    
(70
)
    
(23
)
    
-
      
-
      
(93
)
Financing income
    
17
      
6
      
-
      
24
      
47
  
Financing expenses
    
(76
)
    
(29
)
    
-
      
(10
)
    
(115
)
Share in profit of OPC’s associated companies
    
-
      
45
      
-
      
-
      
45
  
Gain in loss of control in CPV Renewable
    
-
      
69
      
-
      
-
      
69
  
(Loss)/profit before taxes
    
(14
)
    
104
      
-
      
4
      
94
  
Income tax expense
    
(15
)
    
(22
)
    
-
      
(4
)
    
(41
)
(Loss)/profit for the year from continuing operations
    
(29
)
    
82
      
-
      
-
      
53
  
Profit for the year from divestment of ZIM
    
-
      
-
      
581
      
-
      
581
  
(Loss)/profit for the year
    
(29
)
    
82
      
581
      
-
      
634
  

 
  
For the year ended December 31, 2023
  
   
OPC Israel
    
CPV Group
    
ZIM
    
Other
    
Consolidated Results
  
   
$ millions
  
Revenue
    
619
      
73
      
-
      
-
      
692
  
Cost of sales (excluding depreciation and amortization)
    
453
      
41
      
-
      
-
      
494
  
Depreciation and amortization
    
(66
)
    
(25
)
    
-
      
-
      
(91
)
Financing income
    
6
      
6
      
-
      
27
      
39
  
Financing expenses
    
(48
)
    
(17
)
    
-
      
(1
)
    
(66
)
Share in profit of OPC’s associated companies
    
-
      
66
      
-
      
-
      
66
  
Profit/(loss) before taxes
    
49
      
17
      
-
      
15
      
81
  
Income tax expense
    
(14
)
    
(5
)
    
-
      
(6
)
    
(25
)
Profit for the year from continuing operations
    
35
      
12
              
9
      
56
  
Loss for the year from divestment of ZIM
    
-
      
-
      
(267
)
            
(267
)
Profit/(loss)/profit for the year
    
35
      
12
      
(267
)
    
9
      
(211
)

6
 
Appendix B
 
Summary of OPC consolidated financial information
 
OPC’s Consolidated Statements of Profit or Loss
 
   
For the year ended
December 31,
  
   
2024
    
2023
  
   
$ millions
  
Revenue
    
751
      
692
  
Cost of sales (excluding depreciation and amortization)
    
(522
)
    
(494
)
Depreciation and amortization
    
(85
)
    
(78
)
Gross profit
    
144
      
120
  
Selling, general and administrative expenses
    
(83
)
    
(73
)
Other (expenses)/income, net
    
(3
)
    
6
  
Operating profit
    
58
      
53
  
Financing expenses
    
(105
)
    
(65
)
Financing income
    
23
      
12
  
Financing expenses, net
    
82
      
53
  
Gain on loss of control in the CPV Renewable
    
69
      
-
  
Share in profit of associated companies, net
    
45
      
66
  
Profit before income taxes
    
90
      
66
  
Income tax expense
    
(37
)
    
(19
)
Profit for the period
    
53
      
47
  
                 
Attributable to:
                
Equity holders of the company
    
30
      
40
  
Non-controlling interest
    
23
      
7
  
Profit for the period
    
53
      
47
  
 
7

Summary Data from OPC’s Consolidated Statement of Cash Flows
 
   
For the year ended December 31,
  
   
2024
    
2023
  
   
$ millions
  
Cash flows provided by operating activities
    
207
      
135
  
Cash flows used in investing activities
    
(466
)
    
(594
)
Cash flows provided by financing activities
    
243
      
503
  
(Decrease)/increase in cash and cash equivalents
    
(16
)
    
44
  
Cash and cash equivalents at end of the period
    
264
      
278
  

Summary Data from OPC’s Consolidated Statement of Financial Position
 
 
  
As at
  
 
  
December 31, 2024
    
December 31, 2023
  
 
  
$ millions
  
Total financial liabilities1
    
1,267
      
1,530
  
Total monetary assets2
    
280
      
278
  
Investment in associated companies
    
1,459
      
703
  
Total equity attributable to the owners
    
1,303
      
1,061
  
Total assets
    
3,309
      
3,479
  
 
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 including proportionate share in Adjusted EBITDA of associated companies 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 including proportionate share in Adjusted EBITDA of associated companies 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, other income/(expenses) and share of changes in fair value of derivative financial instruments. EBITDA and Adjusted EBITDA including proportionate share in Adjusted EBITDA of associated companies 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 including proportionate share in Adjusted EBITDA of associated companies 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 including proportionate share in Adjusted EBITDA of associated companies 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 including proportionate share in Adjusted EBITDA of associated companies 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 including proportionate share in Adjusted EBITDA of associated companies 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,
  
 
  
2024
    
2023
  
 
  
$ millions
  
Profit for the period
    
53
      
47
  
Depreciation and amortization
    
93
      
91
  
Financing expenses, net
    
82
      
53
  
Share of depreciation and amortization and financing expenses, net, included within share of profit of associated companies, net
    
121
      
91
  
Income tax expense
    
37
      
19
  
EBITDA, including proportionate share of adjusted EBITDA of associated companies
    
386
      
301
  
Changes in net expenses, not in the ordinary course of business
    
(54
)
    
5
  
Share of changes in fair value of derivative financial instruments
    
-
      
(2
)
Adjusted EBITDA including proportionate share of adjusted EBITDA of associated companies
    
332
      
304
  

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, 2024 and December 31, 2023 (in $ millions):

As of December 31, 2024
  
OPC
Energy
    
OPC-
Hadera
    
Others
    
Total
  
 
                        
Debt (including accrued interest)
    
452
      
160
      
-
      
612
  
Cash and cash equivalents (including restricted cash used for debt service)
    
4
      
20
      
73
      
97
  
Derivative financial instruments for hedging principal and/or interest
    
-
      
12
      
-
      
12
  
Net debt*
    
448
      
128
      
(73
)
    
503
  

As of December 31, 2023
  
OPC
Energy
    
OPC-
Rotem
    
OPC-
Hadera
    
OPC-
Tzomet
    
OPC-
Gat
    
Others
    
Total
  
                                           
Debt (including accrued interest)
    
56
      
-
      
177
      
306
      
120
      
240
      
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
      
-
      
-
      
4
      
14
  
Net debt*
    
12
      
(2
)
    
140
      
280
      
116
      
142
      
688
  

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

10