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Kenon Holdings Ltd.

Quarterly Report Jun 7, 2021

6878_rns_2021-06-07_b06e1b12-f427-4ffd-bef2-729bd8d08f05.pdf

Quarterly Report

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934

June 7, 2021

Commission File Number 001-36761

Kenon Holdings Ltd.

1 Temasek Avenue #36-01 Millenia Tower Singapore 039192 (Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If ''Yes'' is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

EXHIBITS 99.1 AND 99.2 TO THIS REPORT ON FORM 6-K ARE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-201716) OF KENON HOLDINGS LTD. AND IN THE PROSPECTUSES RELATING TO SUCH REGISTRATION STATEMENT.

Exhibits

  • 99.1 Press Release, dated June 7, 2021: Kenon Holdings Reports Q1 2021 Results and Additional Updates
  • 99.2 Q1 2021 Summary Financial Information of Kenon and OPC and Reconciliation of Certain non-IFRS Financial Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

KENON HOLDINGS LTD.

Date: June 7, 2021 By: /s/ Robert L. Rosen Name: Robert L. Rosen Title: Chief Executive Officer

Exhibit 99.1

Kenon Holdings Reports Q1 2021 Results and Additional Updates

Singapore, June 7, 2021. Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) ("Kenon") announces its results for Q1 2021 and additional updates.

Recent Highlights

ZIM

  • ZIM announced a special dividend to be paid in September 2021 of \$2.00 per share, or approximately \$238 million in the aggregate, of which \$64 million is payable to Kenon.
  • Financial results1 :
  • ZIM's net profit in Q1 2021 was \$590 million, as compared to a net loss of \$12 million in Q1 2020.
  • ZIM's EBITDA2 in Q1 2021 increased to \$817 million, as compared to \$97 million in Q1 2020.
  • In April 2021, ZIM announced the early redemption of 100% of its Series 1 and Series 2 notes, in aggregate amount of \$349 million, to be completed in June 2021.

OPC

  • In January 2021 OPC completed the acquisition of Competitive Power Ventures group ("CPV").
  • In May 2021, a commencement order in connection with the development of the CPV Maple Hill project, a 126 MW power plant in the United States that uses solar technology, was issued. CPV has a 100% interest in the Maple Hill project.
  • Financial results:
  • OPC's revenues in Q1 2021 increased to \$115 million (including \$8 million contributed by CPV), as compared to \$89 million in Q1 2020.
  • OPC's net profit in Q1 2021 was approximately break-even (including a net loss of \$8 million contributed by CPV, largely due to \$14 million in losses on change in fair value of derivative financial instruments), as compared to net profit of \$11 million in Q1 2020.
  • OPC's Adjusted EBITDA2 in Q1 2021 increased to \$28 million, as compared to \$27 million in Q1 2020. Also in Q1 2021, OPC's proportionate share of EBITDA of CPV associated companies was \$18 million.
  • In May 2021, OPC completed the acquisition of a 27% equity interest in Gnergy whose business focuses on vehicle charging stations.

1 Represents 100% of ZIM's results. Kenon's share of ZIM's results for the quarter ended March 31, 2021 was 28% (32% for quarter ended March 31, 2020). 2 Adjusted EBITDA and EBITDA are non-IFRS measures. See Exhibit 99.2 of Kenon's Form 6-K dated June 7, 2021 for the definition of ZIM's EBITDA and OPC's Adjusted EBITDA and a reconciliation to their net profit for the applicable period.

Discussion of Results for the Three Months ended March 31, 2021

Kenon's consolidated results of operations from its operating companies essentially comprise the consolidated results of OPC Energy Ltd ("OPC"). Our share of the results of ZIM Integrated Shipping Ltd. ("ZIM") are reflected under results from associated companies.

See Exhibit 99.2 of Kenon's Form 6-K dated June 7, 2021 for summary Kenon consolidated financial information; summary OPC consolidated financial information; a reconciliation of OPC's Adjusted EBITDA (which is a non-IFRS measure) to net profit; summary financial information of associated companies of CPV; and a reconciliation of ZIM's EBITDA (which is a non-IFRS measure) to net profit.

OPC

The following discussion of OPC's results of operations is derived from OPC's consolidated financial statements, as translated into US dollars. OPC completed the acquisition of CPV on January 25, 2021 and CPV's results are therefore included from that date.

Summary Financial Information of OPC

OPC
Israel U.S. Total OPC
Q1 2021 Q1 2020
\$ millions
Revenue 107 8 115 89
Cost of sales (excluding depreciation and amortization) 74 5 79 58
Finance (expenses)/income, net (7) 1 (6) (5)
Share of losses of associated companies, net - (11) (11) -
Net profit/(loss) 8 (8) - 11
Attributable to:
Equity holders of OPC 2 8
Non-controlling interest (2) 3
Adjusted EBITDA 29 (1) 28 27
Proportionate share of EBITDA of associated companies - 18 18 -

Revenue

For the period ended March 31,
2021 2020
\$ millions
Israel
Revenue from energy generated by OPC (and/or purchased from other generators) and sold to private customers 73 64
Revenue from energy purchased by OPC at the TAOZ rate and sold to private customers 3 -
Revenue from private customers in respect of infrastructures services 21 17
Revenue from energy sold to the System Administrator 5 3
Revenue from sale of steam 5 5
107 89
U.S.
Revenue from sale of electricity and provision of services in the U.S. 8 -
Total 115 89

OPC's revenue from the sale of electricity to private customers derives from electricity sold at the generation component tariffs, as published by the Israeli Electricity Authority ("EA"), with some discount. Accordingly, changes in the generation component tariffs generally affect the prices paid under PPAs by customers of OPC-Rotem and OPC-Hadera. The weighted-average generation component tariff for 2021, as published by the EA, was NIS 0.2526 per KW hour, which was approximately 5.7% lower than the weighted-average generation component tariff in 2020 of NIS 0.2678 per KW hour. OPC's revenues from sale of steam are linked partly to the price of gas and partly to the Israeli Consumer Price Index.

Set forth below is a discussion of the changes in revenues by category between Q1 2021 and Q1 2020.

  • Revenue from energy generated by OPC (and/or purchase from other generators) and sold to private customers increased by \$9 million in Q1 2021, as compared to Q1 2020. As OPC's revenue is denominated in NIS, translation of its revenue into US Dollars had a positive impact of \$4 million. Excluding the impact of exchange rate fluctuations, these revenues increased by \$5 million primarily as a result of (i) an increase of \$10 million due to the commercial operation of the OPC-Hadera power plant (which commenced operations in July 2020) and (ii) an increase of \$2 million due to an increase in consumption by customers of the OPC-Rotem power plant, partially offset by (i) a \$4 million decrease due to a decline in the generation component tariff and (ii) a \$3 million decrease due to unplanned maintenance of the OPC-Rotem power plant.
  • Revenue from energy purchased by OPC at the TAOZ rate and sold to private customers – increased by \$3 million in Q1 2021, as compared to Q1 2020, primarily as a result of an increase in energy purchased during plant maintenance for customers of the OPC-Rotem and OPC-Hadera power plants.
  • Revenue from private customers in respect of infrastructure services increased by \$4 million in Q1 2021, as compared to Q1 2020. As OPC's revenue is denominated in NIS, translation of its revenue into US Dollars had a positive impact of \$1 million. Excluding the impact of exchange rate fluctuations, these revenues increased by \$3 million primarily as a result of a \$4 million increase due to the commercial operation of the OPC-Hadera power plant partially offset by a \$1 million decrease due to decline in infrastructure tariffs.
  • Revenue from energy sold to the System Administrator increased by \$2 million in Q1 2021, as compared to Q1 2020, primarily as a result of an increase in sale of energy at a cogeneration tariff of the OPC-Hadera power plant of \$3 million partially offset by a decrease of \$1 million due to a decrease in sale of energy to the System Administrator from the OPC-Rotem power plant.
  • Revenue from sale of electricity and provision of services in the U.S. increase is due to the completion of the acquisition of CPV in January 2021.

Cost of Sales (Excluding Depreciation and Amortization)

For the period ended March 31,
2021 2020
\$ millions
Israel
Natural gas and diesel oil consumption 39 35
Payment to IEC for infrastructure services and purchase of electricity 26 17
Natural gas transmission 3 2
Operating expenses 6 4
74 58
U.S.
Operating costs and cost of services 5 -
Total 79 58

Natural gas and diesel oil consumption – increased by \$4 million in Q1 2021, as compared to Q1 2020. As OPC's cost of sales is denominated in NIS, translation of its cost of sales into US Dollars had a negative impact of \$3 million. Excluding the impact of exchange rate fluctuations, OPC's cost of sales increased by \$1 million primarily as a result of a \$5 million increase due to the commercial operation of the OPC-Hadera power plant, partially offset by (i) a \$2 million decrease in electricity generation due to unplanned maintenance and load reduction at the OPC-Rotem power plant and (ii) a \$2 million decrease due to a reduction in the gas price as a result of a decline in foreign exchange rate of the dollar.

Payment to IEC for infrastructures services and purchase of electricity – increased by \$9 million in Q1 2021, as compared to Q1 2020. As OPC's cost of sales is denominated in NIS, translation of its cost of sales into US Dollars had a negative impact of \$1 million. Excluding the impact of exchange rate fluctuations, OPC's cost of sales increased by \$8 million primarily as a result of (i) a \$7 million increase due to the commercial operation of the OPC-Hadera power plant and (ii) a \$2 million increase in energy purchase due to maintenance and load reductions on the OPC-Rotem power plant, partially offset by a \$1 million decrease relating to infrastructure expenses in OPC-Rotem.

Operating costs and cost of services in the U.S. – increase is due to the completion of the acquisition of CPV in January 2021.

Finance Expenses, net

Finance expenses, net increased by approximately \$1 million in Q1 2021 as compared to Q1 2020, primarily as a result of a \$3 million increase as a result of commercial operation of the OPC-Hadera power plant and the related discontinuance of capitalisation of financing expenses, partially offset by a \$2 million decrease due to exchange rate gains.

Share of losses of associated companies, net

For the period ended March 31,
2021 2020
\$ millions
Share of losses of associated companies, net (11) -

The result for the period includes losses on changes in fair value of derivative financial instruments totaling \$14 million.

The acquisition of CPV by OPC was completed on January 25, 2021 and CPV results are therefore included above from that date.

As at March 31, 2021, proportionate share of debt (including interest payable) of CPV associated companies was \$884 million and proportionate share of cash and cash equivalents and deposits was \$11 million.

For further details of the performance of associated companies of CPV refer to OPC's immediate report published on the Tel Aviv Stock Exchange ("TASE") on May 30, 2021 and the convenience English translations furnished by Kenon on Form 6-K on June 1, 2021.

Liquidity and Capital Resources

As of March 31, 2021, OPC had cash and cash equivalents and short-term deposits of \$240 million, debt service reserves (out of restricted cash) of \$37 million, and total outstanding consolidated indebtedness of \$1,051 million, consisting of \$50 million of short-term indebtedness and \$1,001 million of long-term indebtedness. As of March 31, 2021, a substantial portion of OPC's debt was denominated in NIS.

Recent Business Developments

CPV Maple Hill

In May 2021, a commencement order for the construction work for the Maple Hill project was issued. A construction agreement was signed and the rights to the project's lands were acquired. The US-based solar plant has a capacity of approximately 126 megawatts MWdc (approximately 100 megawatts MWac). CPV has a 100% interest in this project. The aggregate cost of the investment in the project is estimated to be approximately \$158 million and the project's commercial operation date is expected to be in the second or third quarter of 2022.

Gnergy

In May 2021, OPC acquired a 27% equity interest in Gnergy whose business focuses on vehicle charging stations. OPC is expected to acquire an additional 24% equity interest by December 2021.

ZIM

Discussion of ZIM's Results for Q1 2021

For the period ended March 31, 2021, ZIM's net profit was \$590 million, as compared to a loss of \$12 million in Q1 2020. ZIM's EBITDA2 in Q1 2021 was \$817 million, as compared to \$97 million in Q1 2020.

ZIM carried approximately 818 thousand TEUs in Q1 2021 representing a 28% increase as compared to Q1 2020, in which ZIM carried approximately 638 thousand TEUs. The average freight rate per TEU in Q1 2021 was \$1,925 per TEU, as compared to \$1,091 per TEU in Q1 2020.

ZIM's revenues increased by 112% in Q1 2021 to approximately \$1.7 billion, as compared to approximately \$0.8 billion in Q1 2020, primarily due to an increase in revenues from containerized cargo, reflecting increases in both freight rates and carried volume.

ZIM's net income for Q1 2021 was \$589.6 million, compared to a net loss of \$11.9 million for Q1 2020. Net income for Q1 2021 also reflected a tax expense of \$54 million, of which \$34 million was deferred tax expenses, which offsets previously recorded deferred tax assets.

Special Dividend

In May 2021, ZIM's board of directors approved a special cash dividend of approximately \$2.00 per share (an aggregate amount of approximately \$238 million), payable to ZIM's shareholders of record as of the close of trading on August 25, 2021, for payment on September 15, 2021. Of this dividend, approximately \$64 million is payable to Kenon.

Notes Repurchase

In March 2021, ZIM made an early repayment of \$85 million of its Series 1 notes (Tranche C). In April 2021, ZIM announced an additional early repayment in respect of its Series 1 and Series 2 notes (Tranches C and D), of aggregate amount \$349 million, to be completed in June 2021. This reflects a full settlement of such notes and will result in the termination of the provisions and limitations relating to such notes.

Qoros

Sale of remaining 12% interest

In April 2021, Kenon's subsidiary Quantum (2007) LLC entered into an agreement with the China-based investor related to the Baoneng Group, which holds 63% of Qoros, to sell all of its remaining 12% interest in Qoros. For key terms of the agreement, refer to the Form 6-K published by Kenon on April 19, 2021.

Additional Kenon Updates

Kenon's (Unconsolidated) Liquidity and Capital Resources

As of March 31, 2021, Kenon's unconsolidated cash balance was \$220 million. Following payment of approximately \$100 million in dividends in May 2021, Kenon's unconsolidated cash balance is currently approximately \$120 million. There is no material debt at the Kenon level.

Kenon's 2020 Annual Report on Form 20-F

As a reminder, Kenon's 2020 Annual Report on Form 20-F was filed with the U.S. Securities and Exchange Commission ("SEC") on April 19, 2021 and can be downloaded from the SEC's website (http://www.sec.gov). Our 2020 Annual Report on Form 20-F is also available on our corporate website (http://www.kenon-holdings.com). Hard copies of our complete 2020 audited financial statements can be ordered, free of charge, by contacting us.

About Kenon

Kenon is a holding company that operates dynamic, primarily growth-oriented businesses. The companies it owns, in whole or in part, are at various stages of development:

  • OPC (58% interest) a leading owner, operator and developer of power generation facilities in the Israeli and U.S. power markets;
  • ZIM (28% interest) an international shipping company; and
  • Qoros (12% interest3) a China-based automotive company.

For further information on Kenon's businesses and strategy, see Kenon's publicly available filings, which can be found on the SEC's website at www.sec.gov. Please also see http://www.kenonholdings.com for additional information.

Caution Concerning Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating statements about ZIM's declared dividend and note repurchase, as well as statements relating to OPC's development projects including Maple Hill projects, including expected installed capacity and expected cost and timing for completion of the project, statements relating to Kenon's agreement to sell its remaining interest in Qoros and other non-historical matters. These statements are based on current expectations or beliefs and are subject to uncertainty and changes in circumstances. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Kenon's control, which could cause the actual results to differ materially from those indicated in such forward-looking statements. Such risks include risks related to ZIM and the payment of its announced dividend, risks relating to the potential failure to complete the development and reach commercial operation of Maple Hill projects as described or at all, including risks related to costs associated with delays or higher costs in reaching commercial operation, risks relating to completion of the Qoros transaction, including risks relating to meeting the conditions to the obligations under the transaction including risks relating to regulatory approvals and the condition that the pledge over the shares to be sold be released, and risks relating to the payments to be made to Quantum and released from the designated account and the timing thereof and other risks and factors including those risks set forth under the heading "Risk Factors" in Kenon's Annual Report on Form 20-F filed with the SEC and other filings. Except as required by law, Kenon undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contact Info

Kenon Holdings Ltd. Mark Hasson Chief Financial Officer [email protected] Tel: +65 9726 8628

3 Kenon has agreed to sell its remaining 12% interest to the majority shareholder in Qoros; upon completion of this sale, Kenon will no longer be a shareholder of Qoros.

Exhibit 99.2

Financial Information for the Three Months Ended March 31, 2021 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 financial information of OPC's subsidiaries

Appendix E: Definition of ZIM's EBITDA and non-IFRS reconciliation

Summary Kenon consolidated financial information

Kenon Holdings Ltd. and its subsidiaries Consolidated Statements of Financial Position (Unaudited)

March 31, December 31,
2021 2020
\$ millions
Current assets
Cash and cash equivalents 455 286
Short-term deposits and restricted cash 22 564
Trade receivables 44 48
Short-term derivative instruments 1 -
Other current assets 28 22
Total current assets 550 920
Non-current assets
Investment in ZIM (associated company) 478 297
Investment in CPV (associated companies) 550 -
Long-term investment 233 235
Long-term deposits and restricted cash 55 72
Long-term prepaid expenses 45 45
Long-term derivative instruments 5 -
Deferred taxes, net 9 7
Property, plant and equipment, net 924 819
Intangible assets, net 217 1
Right-of-use assets, net 94 86
Total non-current assets 2,610 1,562
Total assets 3,160 2,482
Current liabilities
Current maturities of loans from banks and others 50 47
Short-term derivative instruments 10 39
Current tax liabilities 1 -
Trade and other payables 154 128
Current maturities of lease liabilities 17 14
Total current liabilities 232 228
Non-current liabilities
Long-term loans from banks and others 719 576
Debentures 282 296
Deferred taxes, net 105 94
Other non-current liabilities 30 1
Long-term derivative instruments 7 7
Long-term lease liabilities 14 4
Total non-current liabilities 1,157 978
Total liabilities 1,389 1,206
Equity
Share capital 602 602
Translation reserve 13 16
Capital reserve 17 (11)
Accumulated profit/(loss) 682 460
Equity attributable to owners of the Company 1,314 1,067
Non-controlling interests 457 209
Total equity 1,771 1,276
Total liabilities and equity 3,160 2,482

Kenon Holdings Ltd. and its subsidiaries

Consolidated Statements of Profit or Loss (Unaudited)

For the three months ended March 31,
2021 2020
\$ millions
Revenue 115 89
Cost of sales and services (excluding depreciation and amortization) (79) (58)
Depreciation and amortization (13) (7)
Gross profit 23 24
Selling, general and administrative expenses (10) (8)
Operating profit 13 16
Financing expenses (12) (7)
Financing income 6 7
Financing expenses, net (6) -
Net (loss)/gains related to Qoros (2) 16
Gain related to ZIM dilution 10 -
Share in profit/(losses) of associated companies, net
-
ZIM
172 (3)
-
CPV
(11) -
-
Qoros
- (4)
Profit before income taxes 176 25
Income tax benefit/(expense) 2 (5)
Profit for the period 178 20
Attributable to:
Kenon's shareholders 180 15
Non-controlling interests (2) 5
Profit for the period 178 20
Basic/diluted profit per share attributable to Kenon's shareholders (in dollars):
Basic/diluted profit per share 3.34 0.28

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

For the three months ended March 31,
2021 2020
\$ millions
Cash flows from operating activities
Profit for the period 178 20
Adjustments:
Depreciation and amortization 13 7
Financing expenses, net 6 -
Net losses/(gains) related to Qoros 2 (16)
Gain related to ZIM dilution (10) -
Share in (profit)/losses of associated companies, net (161) 7
Share-based payments 1 -
Income tax (benefit)/expense (2) 5
27 23
Change in trade and other receivables - 4
Change in trade and other payables (8) (7)
Cash generated from operating activities 19 20
Dividend received from associated companies 3 -
Net cash provided by operating activities 22 20

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

For the three months ended March 31,
2021 2020
\$ millions
Cash flows from investing activities
Short-term deposits and restricted cash, net 545 11
Investment in long-term deposits, net 16 (16)
Acquisition of subsidiary, less cash acquired (656) -
Acquisition of property, plant and equipment (45) (28)
Reimbursement in respect of right-of-use asset 2 -
Proceeds from sale of investment in associated company 41 -
Long-term advance deposits and prepaid expenses (1) (55)
Payment of transactions in derivatives, net - (1)
Net cash used in investing activities (98) (89)
Cash flows from financing activities
Repayment of long-term loans and debentures, derivative financial instruments and lease liabilities (56) (4)
Investments of holders of non-controlling interests in the capital of a subsidiary 167 -
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 52 -
Short-term credit from banks and others, net - 59
Payment in respect of derivative financial instruments, net (2) (1)
Costs paid in advance in respect of taking out of loans (1) -
Dividends paid to holders of non-controlling interests - (6)
Acquisition of non-controlling interests - (8)
Interest paid (11) (4)
Net cash provided by financing activities 254 36
Increase/(decrease) in cash and cash equivalents 178 (33)
Cash and cash equivalents at beginning of the year 286 147
Effect of exchange rate fluctuations on balances of cash and cash equivalents (9) (3)
Cash and cash equivalents at end of the period 455 111

Information regarding reportable segments

Information regarding activities of the reportable segments are set forth in the following table.

For the three months ended March 31, 2021
OPC Israel CPV ZIM Quantum Other Consolidated
Results
\$ millions
Revenue 107 8 - - - 115
Depreciation and amortization (11) (2) - - - (13)
Financing income 3 3 - 6
Financing expenses (10) (2) - - - (12)
Net losses related to Qoros - - - (2) - (2)
Gain related to ZIM dilution - - 10 - - 10
Share in (losses)/profit of associated companies - (11) 172 - - 161
Profit/(loss) before taxes 11 (13) 181 (2) (1) 176
Income taxes (expense)/benefit (3) 5 - - - 2
Profit from continuing operations 8 (8) 181 (2) (1) 178
For the three months ended March 31, 2020
OPC ZIM Quantum
\$ millions
Other Consolidated
Results
Revenue 89 - - - 89
Depreciation and amortization (7) - - - (7)
Financing income 2 - - 5 7
Financing expenses (7) - - - (7)
Net losses related to Qoros - - 16 - 16
Share in losses of associated companies - (3) (4) - (7)
Profit/(loss) before taxes 15 (3) 12 1 25
Income taxes (4) - - (1) (5)
Profit/(loss) from continuing operations 11 (3) 12 - 20
6

Information regarding associated companies

Carrying amounts of investment in
associated companies
Equity in the net profit / (losses) of
associated companies
as at for the period ended
March 31,
2021
December 31,
2020
March 31,
2021
March 31,
2020
\$ millions \$ millions
ZIM 478 297 172 (3)
CPV Fairview LLC 169 - (2) -
CPV Towantic LLC 117 - 3 -
CPV Maryland LLC 60 - - -
CPV Shore Holdings LLC 65 - - -
CPV Valley Holdings LLC 74 - (12) -
CPV Three Rivers LLC 65 - - -
Qoros* - - - (4)
1,028 297 161 (7)

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

Appendix B

Summary of OPC consolidated financial information

OPC's Consolidated Statements of Profit or Loss (Unaudited)

For the three months ended March 31,
2021 2020
\$ millions \$ millions
Revenue 115 89
Cost of sales (excluding depreciation and amortization) (79) (58)
Depreciation and amortization (13) (7)
Gross profit 23 24
Selling, general and administrative expenses (8) (4)
Operating profit 15 20
Financing expenses (12) (7)
Financing income 6 2
Financing expenses, net (6) (5)
Share of losses of associated companies, net (11) -
(Loss)/profit before income taxes (2) 15
Income taxes benefit/(expense) 2 (4)
Net profit for the period - 11
Attributable to:
Equity holders of the company 2 8
Non-controlling interest (2) 3
Net profit for the period - 11

Summary Data from OPC's Consolidated Statement of Cash Flows (Unaudited)

For the three months ended March 31,
2021
2020
\$ millions
Cash flows provided by operating activities 24 24
Cash flows used in investing activities (98) (89)
Cash flows provided by financing activities 254 35
Increase/(Decrease) in cash and cash equivalents 180 (30)
Cash and cash equivalents at end of the period 233 78

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

As at
March 31, December 31,
2021 2020
\$ millions
Total financial liabilities1 1,051 921
Total monetary assets2 277
608
Investment in associated companies 550
-
Total equity attributable to the owners 671
520
Total assets 2,235 1,734
  1. Including loans from banks and others and debentures

  2. Including cash and cash equivalents and debt service reserves (out of restricted cash)

Appendix C

Definition of OPC's Adjusted EBITDA and non-IFRS reconciliation

This press release, including the financial tables, presents OPC's 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, share of losses of associated companies, net, and income tax expense. 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
March 31, 2021
\$ millions
Total
Net profit for the period -
Depreciation and amortization 13
Financing expenses, net 6
Share of losses of associated companies, net 11
Income tax benefit (2)
Adjusted EBITDA 28
Proportionate share of EBITDA of associated companies 181
For the three
months ended
March 31, 2020
\$ millions
Total
Net profit for the period 11
Depreciation and amortization 7
Financing expenses, net 5
Income tax expense 4
EBITDA 27
1 Reconciliation of Net income to EBITDA for associated companies
For the three
months ended
March 31, 2021
\$ millions
Total
Share of net loss for the period (11)
Share of depreciation and amortization 8
Share of financing expenses, net 21
Share of EBITDA 18

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

As at March 31, 2021 OPC
Energy
OPC-Rotem OPC
Hadera
OPC
Tzomet
Keenan Other Total
Debt (including accrued interest) 289 322 207 55 71 107 1,051
Cash and cash equivalents and short-term deposits 104 47 4 6 11 68 240
Debt service reserves (out of restricted cash)1 - 23 14 - - - 37
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)1 8 24 14 - 46

1 Including reserves used for guarantees of debt.

Appendix E

Definition of ZIM's EBITDA and non-IFRS reconciliation

This press release, including the financial tables, presents ZIM's EBITDA, which is a non-IFRS financial measure.

ZIM 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 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 EBITDA enables the comparison of operating performance between periods on a consistent basis. 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 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, 2021
\$ millions
Total
Net profit for the period 590
Depreciation and amortization 134
Financing expenses, net 39
Income tax expense 54
EBITDA 817
For the three
months ended
March 31, 2020
\$ millions
Total
Net loss for the period (12)
Depreciation and amortization 72
Financing expenses, net 34
Income tax expense 3
EBITDA 97

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