SINGAPORE, March 31, 2015 /PRNewswire/ --
Key Highlights
- On January 7, 2015 Kenon
completed its spin-off from IC and its shares started trading on
the New York Stock Exchange and Tel Aviv Stock Exchange under the
symbol "KEN";
- Kenon's revenue, derived from Kenon's key operating company IC
Power ("ICP"), increased by 57% to approximately $1,372 million;
- ICP's EBITDA (refer to the definition and calculation of EBITDA
in the appendices) increased 41% to $348
million;
- ICP acquired 7 generating assets in four Latin American
countries adding an additional 572 MW in capacity and sold 21% of
Edegel, recognizing $110 million gain
in net profit on the sale;
- ICP continued to develop its key projects: CdA, a 510MW hydro
project in Peru, $647 million invested as of year-end 2014 and
Samay, a 600MW thermoelectric project in Peru $110
million invested as of year-end 2014;
- ZIM completed its restructuring: Kenon's ownership decreased
from 99.7% to 32%, consequently recognizing a gain of $609 million in net profit; and
- Kenon continued to support Qoros in its early commercial
operations with additional investments: Qoros reached $140 million sales in 2014, launched 3 new models
and continued ramping up its dealer network.
- Qoros approved a new five-year business plan, reflecting lower
forecasted sales volumes. On February
15, Qoros appointed Mr. Phil
Murtaugh, former president of GM China and a global
automotive veteran with over 40 years of experience, including 16
years in China, as its new
CEO.
Kenon Holdings (NYSE: KEN) (TASE: KEN) today announced
its full year results for the year ended December 31, 2014.
Kenon Holdings ("Kenon") was formed to hold certain companies
that were owned (in whole, or in part) by Israel Corporation
("IC"). Kenon was spun-off to IC's investors in January 2015.
Kenon's management will host a conference call for investors and
analysts tomorrow April 1, 2015
starting at 9:00am Eastern Time
6:00am Pacific Time, 2:00pm UK Time, 4:00pm Israel Time. To participate, please dial
(US) 1-888-407-2553 (UK) 0- 800-4048-418 (Israel) 03-918-0644.
2014 Results Discussion
Revenue
Kenon's 2014 revenue increased by 57% to $1,372 million, driven by the first full year of
operations of OPC, ICP's power plant in Israel, as well as a result of new
acquisitions, and the increased sales of capacity and energy under
its PPAs due to the operations of the combined cycle of Kallpa,
ICP's largest asset in Peru.
Cost of Sales
Cost of sales increased by 65% to $981
million for 2014. This was primarily as a result of
increased power generation from the additional OPC capacity and the
companies that ICP acquired in 2014.
Profit
Profit from continuing operations increased to $18 million in 2014, compared with a loss of
$96 million in 2013.
Profit attributable to Kenon's shareholders for 2014 was
$468 million and included a gain of
$609 million as a result of ZIM's
restructuring and a gain of $110
million from the sale of Edegel by ICP.
Contribution of Principal Operations to Profit
(attributable to Kenon's shareholders)
The following table is a summary of the net income contribution
from Kenon's principal operations:
|
Year Ended December 31,
|
|
2014
|
2013
|
2012
|
2011
|
2010
|
|
(in millions of
USD)
|
Profit / (loss)
for the year from continuing operations
|
18
|
(96)
|
(31)
|
8
|
13
|
Profit / (loss)
attributable to Kenon's shareholders
|
468
|
(626)
|
(452)
|
(407)
|
77
|
|
Contributions to
Kenon's income (loss) for the period
|
IC Power
|
209
|
66
|
57
|
60
|
43
|
Qoros
|
(175)
|
(127)
|
(54)
|
(54)
|
(39)
|
ZIM
|
(142)
|
(533)
|
(432)
|
(395)
|
54
|
Gain from ZIM's
deconsolidation and change to associated company
|
609
|
--
|
--
|
--
|
--
|
Tower
|
10
|
(27)
|
(21)
|
(8)
|
(15)
|
Other
|
(43)
|
(5)
|
(2)
|
(10)
|
34
|
ICP contributed $209
million to Kenon's profit, growing from $66 million in 2013, mainly driven by growth of
production and net gain from the sale of equity interest in
Edegel.
Qoros contributed a negative $175
million to Kenon's profit in 2014 compared with a negative
$127 million in 2013. Qoros is an
early stage company which launched commercial sales at the end of
2013. Accordingly, Qoros incurs significant expenses but has not
achieved significant revenues.
ZIM contributed a negative $142
million to Kenon's profit in 2014, of which the first 6
months prior to the restructuring contributed a negative
$132 million, and the last 6 months
(post the restructuring) contributed a negative $10 million. This is compared with a negative
contribution of $533 million in 2013.
As a result of the restructuring completed on July 16, 2014, and the resulting reduction of
Kenon's holdings from 99.7% to 32% a gain of $609 million was recognized.
Tower contributed $10
million to Kenon's profit in 2014, compared to a negative
contribution of $27 million in
2013.
Other contributed a negative $43
million to Kenon's profit compared to a negative
contribution of $5 million in 2013.
The Other category is mainly attributed to intercompany finance
income, Kenon's general and administrative expenses, and the
results of Primus, one of Kenon's renewable energy businesses.
Business Segments
IC Power Ltd. ("ICP")
Brief summary of 2014 results
ICP's revenues for 2014 were $1,372
million, compared to $873
million in 2013. The increase was mainly due to the assets
acquired during 2014, as well as the inclusion of the first full
operating year of OPC, which commenced operations in the second
half of 2013.
ICP's cost of sales increased to $981
million for 2014, compared to $594
million in 2013, primarily as a result of the additional
costs for the full operating year of OPC and the acquired
companies.
ICP's 2014 EBITDA (refer to the definition and calculation of
EBITDA in the appendices) amounted to $348
million, compared to $247
million in 2013. The increase was mainly due to the full
operating year of OPC and the acquired companies during the course
of 2014.
Net income contributable to shareholders for 2014 amounted to
$209 million, compared to
$66 million in 2013. This increase is
mainly the result of the net gain from Edegel of $110 million.
ICP's financial liabilities (excluding payables and derivative
instruments) amounted to $2,348
million as of year-end 2014, compared to $1,669 million as of year-end 2013. The increase
is mainly due to the loan disbursements for the hydro CdA and the
Samay project, and the additional debt at the ICP level.
ICP had cash, cash equivalents, short term deposits and
restricted cash at year-end 2014, of $791
million, compared to $526
million at year-end 2013.
ICP's financial liabilities, net (financial liabilities minus
monetary assets) amounted to $1,557
million at year-end 2014, compared to $1,143 million as of year-end 2013.
Business Developments at ICP
- In March 2014, ICP fully acquired
AEI Nicaragua Holdings for $30
million. In May 2014, ICP
fully acquired AEI Jamaica Holdings for $21
million. AEI Nicaragua and AEI Jamaica hold and operate a
capacity of about 245MW including power stations operating on wind
energy with capacity of 63MW.
- In March 2014, ICP acquired 60%
of Supertroil for $18 million.
Supertroil is a Colombian company, engaged in the production of
energy from natural gas, as well as in the transport and
distribution of natural gas.
- In March 2014, ICP won an Israel
Lands Administration tender for the lease of a 5.5 hectare lot
adjacent to OPC's power station, which may serve ICP in the future
for, among other things, the expansion of its generating
electricity capacity.
- In April 2014, ICP acquired Las
Flores from Duke Energy for $114
million. Las Flores is a 193MW open-cycle natural gas-fired
power station located in Chilca, Peru, 3 km from the Kallpa power plant.
- In April 2014, ICP entered into
an agreement to sell its 21% interest in Edegel for $413 million, to Enersis, the controlling
shareholder in Edegel. The transaction was completed during the
third quarter of 2014 and ICP recorded a net gain of $110 million.
- During May and June 2014, ICP
made payments of $300 million to its
parent company.
- In August 2014, ICP agreed to
acquire AEI's shares in AEI Guatemala that holds Puerto Quetzal
Power ("PQP") which operated 234MW power facilities in Guatemala installed on 3 floating power
barges, fired by heavy fuel oil (HFO). The acquisition was
completed in September 2014 for
$35 million.
- In October 2014, ICP, through
Kanan, a subsidiary of Inkia in Panama, won a tender for the supply of 86MW to
distribution companies in Panama
for a five year period, commencing September
2015. The supply is to be made from two of ICP's existing
power barges. Commercial operation of Kanan is expected to commence
in September 2015.
- In December 2014, ICP entered
into a settlement with an indirect minority shareholder of Nejapa
that operates in El Salvador,
according to which ICP would acquire Nejapa's full shareholding for
$20 million. The acquisition was
completed in January 2015.
- Projects under construction:
- Cerro
del Aguila
ICP is constructing a 510MW hydro project in Huancavelica, in
central Peru. The total cost per
the EPC and other contracts is $910
million. In 2014, the contractors demanded a six-month
extension and an increase in the construction price. IC Power and
the contractors agreed to amend the EPC (reflecting an additional
$40 million in contract payments),
subject to approval of the CdA lenders. For more information,
please see Kenon's annual report for the year ended December 31, 2014.
As of year-end 2014, CdA has received proceeds of $462 million from the debt facilities out of the
$591 million available.
ICP estimates that the project will reach commercialization in
the second half of 2016. The total cost of the project incurred as
of year-end 2014, is $647
million.
- Samay
In September 2013, ICP won a
tender for the construction and operation of a 600MW dual fuel
project in the south of Peru. The
agreement with the Peruvian government is for a 20-year period,
with fixed monthly capacity payments and pass-through of all
variable costs during the cold reserve phase, representing an
aggregate amount of approximately $1
billion over the 20-year term of this agreement.
In April 2014, Samay signed an EPC
agreement with the Korean company Posco for the design,
construction and installation of the power station. Samay also
signed an EPC contract with Abengoa for the transmission line and
with Siemens for the substation.
Samay is expected to have three operational stages:
- As a cold reserve plant
operating with diesel until natural gas becomes available in the
area, which is not expected until around 2018;
- As a natural gas-fired power
plant once a new natural gas pipeline is built and natural gas
becomes available to the facility; and
- As a combined cycle
thermoelectric plant.
The cost of the investment in construction of the power station
as an open-cycle, is estimated at about $380
million.
In December 2014, Samay signed the
project financing credit agreement with a club deal of banks to
finance $311 million. The tenure of
the loan is 7 years; with a 75% balloon and an interest rate of
Libor plus 2.125%.
As of year-end 2014, Samay received $153
million in proceeds from this financing facility.
ICP estimates that the project will be in commercial operation
in mid-year 2016. As of year-end 2014, Samay has invested
approximately $110 million in the
project.
Qoros Automotive
Overview of Qoros
Qoros is a China-based
automotive company, jointly owned with a subsidiary of Chery
Automobile, a Chinese state-controlled holding and large automobile
manufacturing company. Qoros aims to deliver high Western standards
of vehicle quality and safety, as well as innovative features, to
the large and fast-growing Chinese market.
Qoros Operating Results
Kenon's share in Qoros' comprehensive loss increased to
$175 million for 2014, compared to
losses of $127 million for 2013.
Qoros' results of operation reflect the fact that Qoros is an early
stage auto company, incurring significant expenses, including those
relating to the launch of new models, but has not achieved
significant revenues.
Qoros had revenues of RMB865
million ($140 million) in 2014
compared to revenues of RMB13 million
($2 million) in 2013.
New Vehicle Launches by Qoros
Qoros launched and sold its first car, the Qoros 3 Sedan, in
December 2013. In 2014, Qoros
launched commercial sales of its second model, the Qoros 3 Hatch
and its third model, the Qoros 3 City SUV.
Car Sales
Qoros sold approximately 7,000 cars in 2014. Qoros' sales in the
first two months of 2015 were 1,423 cars. As an early stage
auto company, Qoros believes that its sales in the first two months
of 2015 are not necessarily indicative of meaningful trends and
that sales figures will continue to fluctuate in the near term.
Dealerships
As of December 31, 2014, 75 Qoros
dealerships were fully operational, 20 additional dealerships were
under construction, and Qoros had signed 14 Memorandums of
Understanding with respect to the development of 14 additional
dealerships.
Awards
In 2014 Qoros received the Red Dot Award (for the Qoros 3 Hatch)
and the Telematics Update Award in 2014, and in 2015 'The Best
Domestic Compact Car' by German magazine, Auto Motor und Sport.
In 2013, Qoros 3 Sedan won 'The Safest Car and The Second Safest
Car Ever Tested' by Euro NCAP.
New Business Plan
In September 2014, Qoros approved
a new five-year business plan, reflecting lower forecasted sales
volumes.
New CEO appointed at Qoros
Phil Murtaugh, a well-known
leader in the global automotive industry, was appointed new Chief
Executive Officer at Qoros. Mr. Murtaugh has experience in managing
brands both in China and
internationally. He was based in China for nearly 16 years, as President of GM
China leading the successful launch and expansion of GM brands, as
Executive Vice President at SAIC Motors leading their international
operations, and as CEO of the Asian Operation Chrysler Group.
Investments by Kenon
In June 2014, IC invested
RMB500 million (approximately
$80 million) in Qoros via a
shareholder loan. In December 2014,
IC made a further RMB350 million
shareholder loan (approximately $56
million) to Qoros in connection with the release of one of
IC's outstanding back-to-back guarantees in respect of certain of
Qoros' indebtedness.
In February 2015, Kenon made a
shareholder loan to Qoros of RMB400
million (approximately $64
million) in connection with the release of IC's outstanding
back-to-back guarantee in respect of certain of Qoros'
indebtedness. Chery has also agreed to provide a further
RMB400 million (approximately
$64 million) shareholder loan to
Qoros, subject to certain conditions.
Investors' Conference Call
Kenon's management will host a conference call for investors and
analysts tomorrow April 1 starting at
9:00am Eastern Time. To participate,
please call one of the following teleconferencing numbers:
US:
1-888-407-2553
UK:
0- 800-4048-418
Israel: 03-
918-0644
International: +972-3-918-0664
The call will commence at 9:00am Eastern
Time, 6:00am Pacific Time,
2:00pm UK Time, 4:00pm Israel Time and 9:00pm Singapore Time.
About Kenon Holdings
Kenon is a newly-incorporated holding company that operates
dynamic, primarily growth-oriented businesses. The companies it
owns, in whole or in part, are at various stages of development,
ranging from established, cash generating businesses to early stage
development companies. Each of our businesses was formerly held by
IC, which spun off these businesses with the aim to enhance value
for its shareholders in the long term, by enhancing the business
focus in the holding of portfolio companies, exposing these
businesses to more focused public of investors within their areas
of activities, creating structural flexibility in the holding of
these businesses and "simplifying" the structure. Our businesses
comprise:
- IC Power (100% interest) – a leading owner, developer and
operator of power generating facilities in the Latin American,
Caribbean and Israeli power
generation markets;
- Qoros (50% interest) – a China-based automotive company;
- Tower Semiconductors (22.5% interest assuming full conversion
of outstanding capital notes) – a global foundry manufacturer, with
shares traded on NASDAQ and the TASE;
- ZIM (32% interest) – an international shipping company;
and
- Two early stage businesses in the renewable energy sector -
Primus (91% interest) – a developer of alternative fuel technology
and HelioFocus (70% interest) – a developer of solar
technologies.
Kenon's primary focus is to grow and develop its primary
businesses, IC Power and Qoros. Following the growth and
development of its primary businesses, Kenon intends to provide its
shareholders with direct access to these businesses, when Kenon
believes it is in the best interests of its shareholders for it to
do so based on factors specific to each business, market conditions
and other relevant information. Kenon intends to support the
development of its non-primary businesses, and to act to realize
their value for its shareholders by distributing its interests in
its non-primary businesses to its shareholders or selling its
interests in its non-primary businesses, rationally and
expeditiously. 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 see
http://www.kenon-holdings.com for additional information.
Contact Info
Kenon Holdings Ltd.
Barak
Cohen
VP Business
Development and IR
barakc@kenon-holdings.com
Tel:
+972-54-3301100
|
Zongda
Huang
Associate Director,
Business Development & IR
huangz@kenon-holdings.com
Tel: +65 6351
1780
|
External Investor
Relations
Ehud Helft / Kenny
Green
GK Investor
Relations
kenon@gkir.com
Tel: 1 646 201
9246
|
|
Appendix
Kenon Consolidated Financial Statements
|
Year Ended December 31,
|
|
2014
|
20131
|
20121
|
20111
|
20101
2
|
|
(in millions of
USD)
|
Consolidated
Statements
of Income3
|
|
|
|
|
|
Revenues from sale
of electricity
|
$ 1,372
|
$
873
|
$
577
|
$ 480
|
$ 305
|
Cost of sales and
services
|
981
|
594
|
395
|
334
|
190
|
Depreciation and
amortization
|
100
|
70
|
51
|
37
|
23
|
Gross
profit
|
$
291
|
$
209
|
$
131
|
$ 109
|
$
92
|
General and
administrative expenses
|
131
|
73
|
69
|
51
|
38
|
Gain from disposal
of
investees.
|
(157)
|
--
|
(5)
|
(19)
|
(9)
|
Asset
write-off
|
48
|
--
|
--
|
--
|
--
|
Gain on bargain
purchase
|
(68)
|
(1)
|
--
|
--
|
--
|
Other
expenses
|
14
|
5
|
--
|
4
|
6
|
Other
income
|
(51)
|
(5)
|
(12)
|
(29)
|
(29)
|
Operating
profit
|
$
374
|
$
137
|
$
79
|
$ 102
|
$
86
|
Financing
expenses
|
110
|
69
|
39
|
38
|
38
|
Financing
income
|
16
|
5
|
3
|
3
|
5
|
Financing
expenses, net
|
$
94
|
$
64
|
$
36
|
$
35
|
$
43
|
Share in losses of
associated companies, net of tax
|
1714
|
127
|
52
|
42
|
30
|
Profit / (loss)
before income taxes
|
$
109
|
$
(54)
|
$
(9)
|
$
26
|
$
24
|
Tax
expenses
|
91
|
42
|
22
|
18
|
11
|
Profit / (loss)
for the year from continuing operations
|
$
18
|
$
(96)
|
$
(31)
|
$
8
|
$
13
|
Income (loss) for
the year from discontinued operations (after
taxes)5
|
$
471
|
$ (513)
|
$ (409)
|
$ (397)
|
$
81
|
Profit / (loss)
for the year
|
$
489
|
$ (609)
|
$ (440)
|
$ (389)
|
$
94
|
Attributable
to:
|
|
|
|
|
|
Kenon's
shareholders
|
$
468
|
$ (626)
|
$ (452)
|
$ (407)
|
$ 77
|
Non-controlling
interests
|
21
|
17
|
12
|
18
|
17
|
Contributions to
Kenon's Income (Loss) for the Period
|
|
|
|
|
|
IC Power
|
$
209
|
$
66
|
$
57
|
$
606
|
$
43
|
Qoros
|
(175)
|
(127)
|
(54)
|
(54)
|
(39)
|
ZIM
|
(142)
|
(533)
|
(432)
|
(395)
|
54
|
Gain from ZIM in light
of deconsolidation and change to associated company
|
609
|
--
|
--
|
--
|
--
|
Tower
|
10
|
(27)
|
(21)
|
(8)
|
(15)
|
Other7
|
(43)
|
(5)
|
(2)
|
(10)
|
34
|
|
|
|
|
|
|
Combined
Statements of Financial Position
|
|
|
|
|
|
Cash and cash
equivalents
|
$
6108
|
$ 671
|
$ 414
|
$ 439
|
$ 614
|
Short-term
investments and
deposits
|
227
|
30
|
89
|
175
|
144
|
Trade
receivables
|
181
|
358
|
323
|
286
|
318
|
Other receivables and
debt balances
|
59
|
98
|
83
|
93
|
76
|
Income tax
receivable
|
4
|
7
|
15
|
8
|
15
|
Inventories
|
55
|
150
|
174
|
161
|
128
|
Total current
assets
|
1,136
|
$ 1,314
|
$ 1,098
|
$ 1,162
|
$ 1,295
|
Total non-current
assets9
|
3,201
|
4,671
|
4,880
|
4,839
|
4,381
|
Total
assets
|
$
4,337
|
$ 5,985
|
$ 5,978
|
$ 6,001
|
$ 5,676
|
Total current
liabilities
|
$
497
|
$ 2,920
|
$ 1,173
|
$ 2,666
|
$
950
|
Total non-current
liabilities
|
$
2,384
|
$ 2,113
|
$ 3,357
|
$ 1,756
|
$ 2,903
|
Parent company
investment
|
1,244
|
714
|
1,213
|
1,401
|
1,666
|
Total parent
company investment and non-controlling interests
|
$
1,456
|
$
951
|
$ 1,448
|
$ 1,579
|
$ 1,823
|
Total liabilities
and parent company investment and non-controlling
interests
|
$
4,337
|
$ 5,985
|
$ 5,978
|
$ 6,001
|
$ 5,676
|
Combined Cash Flow
Data3
|
|
|
|
|
|
Cash flows from
operating activities
|
$
410
|
$257
|
$169
|
$130
|
$446
|
Cash flows from
investing activities
|
(883)
|
(278)
|
(320)
|
(575)
|
(338)
|
Cash flows from
financing activities
|
430
|
281
|
122
|
269
|
322
|
Net change in cash in
period
|
(42)
|
260
|
(29)
|
(176)
|
430
|
- Results during the period have been reclassified to reflect the
discontinued operations of ZIM and Petrotec. For further
information, see Note 28 to our combined carve-out financial
statements included in this annual report.
- IC Power was organized in March
2010. IC Power's primary main subsidiaries are Inkia, the
holding company for IC Power's operations in Latin America and the Caribbean, and OPC, IC Power's operating
company in Israel. Financial data
for 2010, up to the date of IC Power's formation, are results of
Inkia.
- Consists of the consolidated results of IC Power and Primus for
2010 through 2013 and, from June 30,
2014, also includes the consolidated results of HelioFocus;
prior to this date, Kenon did not consolidate Heliofocus' results
of operations.
- Includes Kenon's share in ZIM's loss for the six months ended
December 31, 2014, the period in
which Kenon accounted for ZIM's results of operations pursuant to
the equity method of accounting
- Consists of (i) ZIM's results of operations for 2010 through
2013 and the six months ended June 30,
2014 and (ii) Petrotec's results of operations for 2010
through 2014.
- Includes $24 million of pre-tax
recognition of negative goodwill.
- Consists of intercompany finance income, Kenon's general and
administrative expenses, and the results of Primus. From
June 30, 2014, also includes the
consolidated results of HelioFocus.
- Includes $116 million of
restricted cash comprised of $88
million in short-term deposits and $28 million in long-term deposits.
- Includes Kenon's associated companies: Qoros, Tower, and, from
June 30, 2014, ZIM; prior to
June 30, 2014, also included
HelioFocus.
Information on Business Segments
|
Year Ended
December 31, 2014
|
|
IC Power
|
Qoros1
|
Other2
|
Adjustments3
|
Combined
Carve-Out
Results
|
|
(in millions of
USD, unless otherwise indicated)
|
Revenue
|
$ 1,358
|
$
—
|
$
—
|
$
14
|
$
1,372
|
Depreciation and
amortization
|
(108)
|
—
|
—
|
—
|
(108)
|
Asset
write-off
|
(35)
|
—
|
(13)
|
—
|
(48)
|
Gain from disposal of
investee
|
157
|
—
|
—
|
—
|
157
|
Gain from bargain
purchase
|
68
|
—
|
—
|
—
|
68
|
Financing
income
|
9
|
—
|
39
|
(32)
|
16
|
Financing
expenses
|
(132)
|
—
|
(10)
|
32
|
(110)
|
Share in losses
(income) of associated companies
|
14
|
(175)
|
(10)
|
—
|
(171)
|
Income (loss) before
taxes
|
$
321
|
$ (175)
|
$
(37)
|
$
—
|
$
109
|
Taxes on
income
|
87
|
—
|
4
|
—
|
91
|
Income (loss) from
continuing operations
|
$
234
|
$
(175)
|
$
(41)
|
$
—
|
$
18
|
Attributable
to:
|
|
|
|
|
|
Kenon's
shareholders
|
209
|
(175)
|
(34)
|
—
|
—
|
Non-controlling
interests
|
25
|
—
|
(7)
|
—
|
18
|
Segment
assets4
|
$ 3,849
|
$
—
|
$
8375
|
$
(785)
|
$
3,901
|
Investments in
associated companies
|
10
|
221
|
205
|
—
|
436
|
Segment
liabilities
|
2,860
|
—
|
8066
|
(785)
|
2,881
|
Capital
expenditure
|
5937
|
—
|
12
|
—
|
605
|
EBITDA
|
$
3488
|
$
—
|
$
(43)9
|
$
—
|
$
305
|
Percentage of
combined
revenues
|
99%
|
—
|
—
|
1%
|
100%
|
Percentage of
combined
assets
|
89%
|
—
|
23%
|
(12)%
|
100%
|
Percentage of
combined
assets
excluding
associated companies
|
99%
|
—
|
21%
|
(20)%
|
100%
|
Percentage of
combined
EBITDA
|
114%
|
—
|
(14)%
|
—
|
100%
|
|
|
|
|
|
|
|
- Associated company.
- Includes financing income from parent company loans to Kenon's
subsidiaries; the results of Primus, HelioFocus (from June 30, 2014), and ZIM (up to June 30, 2014); the results of ZIM (from
June 30, 2014), Tower and HelioFocus,
as associated companies; as well as Kenon's and IC Green's holding
company and general and administrative expenses.
- "Adjustments" includes inter-segment sales, and the
consolidation entries. For the purposes of calculating the
"percentage of combined assets" and the "percentage of combined
assets excluding associated companies," "Adjustments" has been
combined with "Other."
- Excludes investments in associates.
- Includes Kenon's and IC Green's assets.
- Includes Kenon's and IC Green's liabilities.
- Includes the additions of PP&E and intangibles based on an
accrual basis.
- For a reconciliation of IC Power's net income to its EBITDA,
see "– Information on Business Segments – IC Power."
- With respect to its "Other" reporting segment, Kenon defines
"EBITDA" as income (loss) for the year before depreciation and
amortization, finance expenses (net), and income tax expense
(benefit), excluding share in losses of associated companies, net
of tax. 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
income or loss, cash flow from operations or other measures of
operating performance or liquidity determined in accordance with
IFRS. EBITDA is not intended to represent funds available for
dividends or other discretionary uses by us because those funds may
be required for debt service, capital expenditures, working capital
and other commitments and contingencies. EBITDA presents
limitations that impair its use as a measure of our profitability
since it does not take into consideration certain costs and
expenses that result from our business that could have a
significant effect on net income, such as financial expenses,
taxes, depreciation, capital expenses and other related charges.
The following table sets forth a reconciliation of our "Other"
reporting segment's income (loss) to its 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.
Non-GAAP Financial Measures
This release, including the financial tables, presents other
financial information that may be considered "non-IFRS financial
measures". These non-IFRS financial measures EBITDA. Non-IFRS
financial measures should be evaluated in conjunction with, and are
not a substitute for, IFRS financial measures. The tables also
present the IFRS financial measures, which are most comparable to
the non-IFRS financial measures as well as reconciliation between
the non-IFRS financial measures and the most comparable IFRS
financial measures. The non-IFRS financial information presented
herein should not be considered in isolation from or as a
substitute for operating income, net income or per share data
prepared in accordance with IFRS.
IC Power defines "EBITDA" for each period as income (loss)
for the year before finance expenses (net), depreciation and
amortization, and income tax expense, asset write off and excluding
share in losses of associated companies, net of tax. 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 income or loss, cash flow from
operations or other measures of operating performance or liquidity
determined in accordance with IFRS. EBITDA is not intended to
represent funds available for dividends or other discretionary uses
by us because those funds may be required for debt service, capital
expenditures, working capital and other commitments and
contingencies. EBITDA presents limitations that impair its use as a
measure of our profitability since it does not take into
consideration certain costs and expenses that result from IC
Power's business that could have a significant effect on our
profit/(loss), such as financial expenses, taxes, depreciation,
capital expenses and other related charges. Please refer to our
annual report on Form 20-F for a reconciliation of our profit
(loss) 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.
Safe Harbor Statement
This press release includes forward-looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995. These statements include statements relating to Kenon's goals
and strategies, including the potential listing, distribution or
monetization of our businesses and the anticipated timing thereof,
the expected cost and expected timing of completion of IC Power's
existing construction projects and the anticipated business results
of such projects; and other non-historical matters. These
statements are based on management's 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 our
control, which could cause the actual results to differ materially
from those indicated in our forward-looking statements. Such risks
include those set forth under the heading "Risk Factors" in Kenon's
Registration Statement and Annual Report on Form 20-F filed with
the U.S Securities and Exchange Commission. 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kenon-holdings-reports-full-year-2014-results-300058411.html
SOURCE Kenon Holdings Ltd.