----

----

----

| ☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|------------------------------------------------------------------------------------------------|

| ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|--------------------------------------------------------------------------------------|

| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|------------------------------------------------------------------------------------------|

| ☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------|---------------------------------------------------------------------------------------------|

----

----

----

| Singapore                                                     | 4911                                                    | Not Applicable                      |
|---------------------------------------------------------------|---------------------------------------------------------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (Primary Standard IndustrialClassification Code Number) | (I.R.S. EmployerIdentification No.) |

----

| Title of Each Class           | Name of Each Exchange on Which Registered |
|-------------------------------|-------------------------------------------|
| Ordinary Shares, no par value | The New York Stock Exchange               |

| U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board  ☒ | Other ☐ |
|-------------------|---------------------------------------------------------------------------------------------------------------------|---------------|

----

| PART I                                                                                                          | 1                                                       |
|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
| ITEM 1.         Identity of Directors, Senior Management and Advisers   | 1                                                       |
|                    A. | Directors and Senior Management                         | 1 |
|                    B. | Advisers                                                | 1 |
|                    C. | Auditors                                                | 1 |
| ITEM 2.         Offer Statistics and Expected Timetable                 | 1                                                       |
| ITEM 3.         Key Information                                         | 1                                                       |
|                    A. | Selected Financial Data                                 | 1 |
|                    B. | Capitalization and Indebtedness                         | 9 |
|                    C. | Reasons for the Offer and Use of Proceeds               | 9 |
|                    D. | Risk Factors                                            | 9 |
| ITEM 4.         Information on the Company                              | 64                                                      |
|                    A. | History and Development of the Company                  | 64 |
|                    B. | Business Overview                                       | 64 |
|                    C. | Organizational Structure                                | 163 |
|                    D. | Property, Plants and Equipment                          | 164 |
| ITEM 4A.     Unresolved Staff Comments                                                      | 164                                                     |
| ITEM 5.        Operating and Financial Review and Prospects                  | 164                                                     |
|                    A. | Operating Results                                       | 185 |
|                    B. | Liquidity and Capital Resources                         | 206 |
|                    C. | Research and Development, Patents and Licenses, Etc.    | 230 |
|                    D. | Trend Information                                       | 230 |
|                    E. | Off-Balance Sheet Arrangements                          | 231 |
|                    F. | Tabular Disclosure of Contractual Obligations           | 231 |
|                    G. | Safe Harbor                                             | 233 |
| ITEM 6.         Directors, Senior Management and Employees              | 233                                                     |
|                    A. | Directors and Senior Management                         | 233 |
|                    B. | Compensation                                            | 235 |
|                    C. | Board Practices                                         | 235 |
|                    D. | Employees                                               | 237 |
|                    E. | Share Ownership                                         | 238 |
| ITEM 7.         Major Shareholders and Related Party Transactions       | 238                                                     |
|                    A. | Major Shareholders                                      | 238 |
|                    B. | Related Party Transactions                              | 239 |
|                    C. | Interests of Experts and Counsel                        | 240 |
| ITEM 8.         Financial Information                                   | 240                                                     |
|                    A. | Consolidated Statements and Other Financial Information | 240 |
|                    B. | Significant Changes                                     | 241 |
| ITEM 9.         The Offer and Listing                                   | 241                                                     |
|                    A. | Offer and Listing Details.                              | 241 |
|                    B. | Plan of Distribution                                    | 242 |
|                    C. | Markets                                                 | 242 |
|                    D. | Selling Shareholders                                    | 242 |
|                    E. | Dilution.                                               | 242 |
|                    F. | Expenses of the Issue                                   | 242 |
| ITEM 10.       Additional Information                                             | 242                                                     |
|                    A. | Share Capital                                           | 242 |
|                    B. | Constitution                                            | 242 |
|                    C. | Material Contracts                                      | 254 |
|                    D. | Exchange Controls                                       | 254 |

----

|                    E.                | Taxation                    | 254 |
|--------------------------------------------------------------------------------------------------------------------------------|-----------------------------|-----|
|                    F.                | Dividends and Paying Agents | 258 |
|                    G.                | Statement by Experts        | 258 |
|                    H.                | Documents on Display        | 258 |
|                    I.                | Subsidiary Information      | 258 |
| ITEM 11.       Quantitative and Qualitative Disclosures about Market Risk                        | 258                         |
| ITEM 12.       Description of Securities Other than Equity Securities                            | 259                         |
|                    A.                | Debt Securities             | 259 |
|                    B.                | Warrants and Rights         | 259 |
|                    C.                | Other Securities            | 259 |
|                    D.                | American Depositary Shares  | 259 |
| PART II                                                                                                                        | 260                         |
| ITEM 13.       Defaults, Dividend Arrearages and Delinquencies                                   | 260                         |
| ITEM 14.       Material Modifications to the Rights of Security Holders and Use of Proceeds | 260                         |
| ITEM 15.       Controls and Procedures                                                           | 260                         |
| ITEM 16.       [RESERVED]                                                                   | 261                         |
| ITEM 16A.    Audit Committee Financial Expert                                                                   | 261                         |
| ITEM 16B.     Code of Ethics                                                                               | 261                         |
| ITEM 16C.     Principal Accountant Fees and Services                                                       | 261                         |
| ITEM 16D.    Exemptions from the Listing Standards for Audit Committees                                         | 261                         |
| ITEM 16E.     Purchases of Equity Securities by the Issuer and Affiliated Purchasers                       | 261                         |
| ITEM 16F.     Change in Registrant's Certifying Accountant                                                 | 262                         |
| ITEM 16G.     Corporate Governance                                                                         | 262                         |
| ITEM 16H.    Mine Safety Disclosure                                                                        | 262                         |
| PART III                                                                                                                       | 263                         |
| ITEM 17.       Financial Statements                                                              | 263                         |
| ITEM 18.       Financial Statements                                                              | 263                         |
| ITEM 19.       Exhibits                                                                          | 263                         |

----

|  | · | I.C. Power Asia Development Ltd. (“ICP”), formerly I.C. Power Ltd., an Israeli holding company with electricity generation and distribution operations in Latin America, the Caribbean and Israel, in which Kenon has an indirect 100% interest; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | IC Power Ltd. (“IC Power”), formerly IC Power Pte. Ltd, a Singaporean holding company, in which Kenon has a direct 100% interest. IC Power holds a direct 100% interest in ICP; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Qoros Automotive Co., Ltd. (“Qoros”), a Chinese automotive company based in China, in which Kenon has a 50% interest; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | · | ZIM Integrated Shipping Services, Ltd. (“ZIM”), an Israeli global container shipping company, in which Kenon has a 32% interest; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Primus Green Energy, Inc. (“Primus”), a New Jersey corporation which is an innovative developer of an alternative fuel technology, in which Kenon, through IC Green, has a 91% interest. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Ansonia” means Ansonia Holdings Singapore B.V., a company organized under the laws of Singapore, which owns approximately 58% of the outstanding shares of Kenon; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “HelioFocus” means HelioFocus Ltd., an Israeli corporation, in which Kenon, through IC Green, has a 70% interest, and which is currently in a liquidation process; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “IC” means Israel Corporation Ltd., an Israeli corporation traded on the Tel Aviv Stock Exchange, or the “TASE,” and Kenon’s former parent; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “IC Green” means IC Green Energy Ltd., an Israeli corporation, which holds Kenon’s equity interests in Primus and HelioFocus; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Petrotec” means Petrotec AG, a German company listed on the Frankfurt Stock Exchange, which IC Green sold in December 2014; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Quantum” means Quantum (2007) LLC, a Delaware limited liability company, which is the direct owner of our 50% interest in Qoros; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “our businesses” shall refer to each of our subsidiaries and associated companies, collectively, as the context may require; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “spin-off” shall refer to (i) IC’s January 7, 2015 contribution to Kenon of its interests in each of IC Power, Qoros, ZIM, Tower, Primus, HelioFocus and REG, as well as other intermediate holding companies related to these entities, and (ii) IC’s January 9, 2015 distribution of Kenon’s issued and outstanding ordinary shares, via a dividend-in-kind, to IC’s existing shareholders; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Tower” means Tower Semiconductor Ltd., an Israeli specialty foundry semiconductor manufacturer, listed on the NASDAQ stock exchange, or “NASDAQ,” and the TASE. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | IC Power’s Operating Companies, Assets under Development, Pipeline Projects and Other Relevant Businesses: |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | “Acter Holdings” means Inkia Holdings (Acter) Limited, a Cayman Islands corporation through which IC Power held its interest in Southern Cone Power Perú S.A.; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Agua Clara” means IC Power DR Operations S.A.S., a Dominican Republic corporation; |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | “Amayo I” means Consorcio Eólico Amayo S.A., a Panamanian corporation; |
|--|--------|-----------------------------------------------------------------------------------------|

----

|  | · | “Amayo II” means Consorcio Eólico Amayo (Fase II) S.A., a Panamanian corporation; |
|--|--------|----------------------------------------------------------------------------------------------------|

|  | · | “CDA” means Cerro del Águila S.A., a Peruvian corporation; |
|--|--------|-----------------------------------------------------------------------------|

|  | · | “Cenérgica” means Cenérgica, S.A. de C.V., a Salvadorian corporation; |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | “Central Cardones” means Central Cardones S.A., a Chilean corporation; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | “CEPP” means Compañía de Electricidad de Puerto Plata S.A., a Dominican Republic corporation; |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | “COBEE” means Compañía Boliviana de Energía Eléctrica S.A., a Canadian corporation; |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | “Colmito” means Termoeléctrica Colmito Ltda., a Chilean corporation; |
|--|--------|---------------------------------------------------------------------------------------|

|  | · | “Corinto” means Empresa Energética Corinto Ltd., a Cayman Islands corporation; |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | “DEOCSA” means Distribuidora de Electricidad de Occidente, S.A., a Guatemalan corporation; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | “DEORSA” means Distribuidora de Electricidad de Oriente, S.A., a Guatemalan corporation; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | “Enel Generación Perú” means Enel Generación Perú S.A.A. Enel Generación Perú previously operated under the name Edegel; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Energuate” means DEORSA and DEOCSA, collectively. Energuate is the trade name of IC Power’s Guatemalan distribution businesses DEORSA and DEOCSA. Energuate is not a legal entity; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Generandes” means Generandes Perú S.A., a Peruvian corporation through which IC Power held its indirect interest in Enel Generación Perú; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Guatemel” means Comercializadora Guatemalteca Mayorista de Electricidad, S.A., a Guatemalan corporation; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------|

|  | · | “Hadera Paper” means Hadera Paper Ltd., an Israeli corporation; |
|--|--------|-----------------------------------------------------------------------------|

|  | · | “ICPDH” means IC Power Distribution Holdings Pte. Ltd., a Singaporean corporation; |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | “ICPI” means IC Power Israel Ltd., an Israeli corporation; |
|--|--------|------------------------------------------------------------------------|

|  | · | “ICPNH” means IC Power Nicaragua Holdings, a Cayman Islands corporation, formerly known as AEI Nicaragua Holdings Ltd., or AEI Nicaragua; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Inkia” means Inkia Energy Limited, a Bermudian corporation; |
|--|--------|--------------------------------------------------------------------------|

|  | · | “JPPC” means Jamaica Private Power Company Ltd., a Jamaican corporation; |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | “Kallpa” means Kallpa Generación S.A., a Peruvian corporation; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | “Kanan” means Kanan Overseas I. Inc., a Panamanian corporation; |
|--|--------|-----------------------------------------------------------------------------|

|  | · | “Nejapa” means Nejapa Power Company S. de R.L., a Panamanian corporation; |
|--|--------|---------------------------------------------------------------------------------------|

|  | · | “OIP” means Overseas Investments Peru S.A., a Peruvian corporation; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | “OPC-Rotem” means O.P.C. Rotem Ltd., an Israeli corporation; |
|--|--------|--------------------------------------------------------------------------|

|  | · | “OPC-Hadera” is the trade name of Advanced Integrated Energy Ltd., an Israeli corporation; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | “Pedregal” means Pedregal Power Company S.de.R.L, a Panamanian corporation; |
|--|--------|-----------------------------------------------------------------------------------------|

|  | · | “Puerto Quetzal” means Puerto Quetzal Power L.L.C., a Delaware limited liability company; |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | “RECSA” means Redes Eléctricas de Centroamérica, S.A., a Guatemalan corporation; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | “Samay I” means Samay I S.A., a Peruvian corporation; |
|--|--------|-------------------------------------------------------------------|

----

|  | · | “Surpetroil” means Surpetroil S.A.S., a Colombian corporation; and |
|--|--------|--------------------------------------------------------------------------------|

|  | · | “Tipitapa Power” means Tipitapa Power Company Ltd., a Cayman Islands corporation. |
|--|--------|-----------------------------------------------------------------------------------------------|

|  | · | IC Power’s Regulatory Bodies and Electricity System Coordination Entities |
|--|--------|---------------------------------------------------------------------------------|

|  | · | “AMM” means Wholesale Market Administrator (Administrador del Mercado Mayorista), a private entity that coordinates the operation of the generation facilities and international interconnections and transmission lines that form Guatemalan National Electricity System; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “ANA” means the National Water Authority of Peru (Autoridad Nacional del Agua); |
|--|--------|---------------------------------------------------------------------------------------------|

|  | · | “CND” means the National Dispatch Center of Panama (Centro Nacional de Despacho); |
|--|--------|-----------------------------------------------------------------------------------------------|

|  | · | “CNDC” means, as applicable, (i) the National Dispatch Committee of Bolivia (Comité Nacional de Despacho de Carga), a governmental entity responsible for planning and coordinating the operation of the generation, transmission and distribution systems that form the SIN in Bolivia or (ii) the National Dispatch Center of Nicaragua (Centro Nacional de Despacho de Cargo), a governmental entity responsible for the management of Nicaragua’s electricity market and national interconnected electrical system; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “CNEE” means the National Electric Energy Commission of Guatemala (Comisión Nacional de Energia Electrica), which was established pursuant to the General Electricity Law of 1996, Decree 93-96, or General Electricity Law (Ley General de Electricidad) and acts as a technical arm of the MEM and which determines the transmission and distribution tariffs and is responsible for ensuring compliance with Guatemalan electricity laws; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “COES” means the Committee for the Economic Operation of the System (Comité de Operación Económica del Sistema Interconectado Nacional), an independent and private Peruvian entity composed of qualified participants undertaking activities in SEIN which is responsible for planning and coordinating the operation of the generation, transmission and distribution systems that form the SEIN; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “EA” means the Electricity Authority in Israel, which was established pursuant to the Electricity Sector Law to regulate and supervise, among other things, the provision of essential electric services in Israel and electricity tariffs and, which replaced the previous regulator, Israel’s Public Utilities Authority (Electricity), or the PUAE, on January 1, 2016; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Guatemalan National Electricity System” means the Guatemalan national electricity system, which comprises the set of premises, facilities, power plants, transmission lines, substations, distribution grids, electric equipment, loading centers, including all of the electric infrastructure used to supply electricity, whether or not interconnected, within which electric power is transmitted among the country’s several regions; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “IEC” means Israel Electric Corporation, a government-owned entity, which generates and supplies the majority of electricity in Israel, transmits and distributes all of the electricity in Israel, acts as the system operator of Israel’s electricity system, determines the dispatch order of generation units, grants interconnection surveys, and sets spot prices, among other roles; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “INDECOPI” means the National Institute for the Defense of Competition and Intellectual Property Protection (Instituto Nacional de Defensa de la Competencia y de la Protección de la Propiedad Intelectual), the Peruvian antitrust and intellectual property regulator; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “INDE” means the National Electrification Institute of Guatemala (Instituto Nacional de Electrificación), a state entity in charge of development of local power production pursuant to the INDE Statutory Law (Ley Orgánica del Instituto Nacional de Electrificación) and consequently in accordance with the General Electricity Law. This entity operates through its three divisions: Empresa de Generación de Energía Eléctrica (EGEE), which is responsible for power generation, Empresa de Transporte y Control de Energía Eléctrica (ETCEE), which is responsible for transmission and Empresa de Comercialización de Energía (ECOE), which is responsible for trading; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “MEM” means the Ministry of Energy and Mines of Guatemala (Ministerio de Energía y Minas), which is responsible for enforcing the General Electricity Law and the related regulations and for the coordination of policies between CNEE and the AMM and overseeing energy and mining sectors in Guatemala; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “MINEM” means the Ministry of Energy and Mines of Peru (Ministerio de Energía y Minas), which is responsible for, among other things, setting national energy policy, proposing and adopting laws and regulations to supervise the energy sector and granting concessions and authorizations to entities who wish to operate in power generation, transmission or distribution in Peru; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | “OC” means the Coordinating Body (Organismo Coordinador), a Dominican governmental authority whose function is to plan and coordinate the operations of the generation, transmission and distribution systems that form the national interconnected electrical system of the Dominican Republic (Sistema Eléctrico Nacional Interconectado); |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “OEFA” means the Organization of Supervision and Environmental Assessment (Organismo de Evaluacióny Fiscalización Ambiental), the Peruvian governmental body responsible for the power plants’ compliance with environmental regulations; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “OSINERGMIN” means the Supervisory Body of Investment in Energy and Mining (Organismo Supervisor de la Inversión en Energía y Minería), a Peruvian governmental authority which is responsible for, among other things, ensuring that companies comply with the rules and regulations applicable to the energy industry in Peru and for setting the tariffs to be charged to regulated customers; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “PUAE” means Israel’s Public Utilities Authority (Electricity), which, prior to January 1, 2016, regulated and supervised, among other things, the provision of essential electric services in Israel and electricity tariffs. The PUAE was replaced by the EA on January 1, 2016; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Salvadorian CNE” means the National Energy Commission of El Salvador (Comisión Nacional de Energía), a governmental entity which is responsible for proposing and adopting policies and regulations for the Salvadorian energy sector; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “SEIN” means the national interconnected electrical system of Peru (Sistema Eléctrico Interconectado Nacional); |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | · | “SENACE” means the National Service for Environmental Certification of Sustainable Investments of Peru (Servicio Nacional de Certificación Ambiental para las Inversiones Sostenibles), a Peruvian specialized technical governmental agency in charge of reviewing and approving detailed environmental impact assessments related to projects involving activities, works or services that may cause significant impacts to the environment; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “SIC” means the national interconnected electrical system of Chile (Sistema Interconectado Central); |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | “SIEPAC” means Central American Electrical Interconnection System (Sistema de Interconexión Eléctrica de los Países de América Central) that connects the transmission systems of Nicaragua, Panama, Costa Rica, Honduras, El Salvador and Guatemala through a 230 KW transmission line; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “SIGET” means the General Superintendency of Electricity and Telecommunications (Superintendencia General de Electricidad y Telecomunicaciones), a Salvadorian entity which is responsible for ensuring that companies comply with the rules and regulations passed by the Salvadorian CNE, as well as other laws that are applicable to the energy industry in El Salvador; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “SIN” means a national system formed by generation plants, the interconnected grid, regional transmission lines, distribution lines and consumer loads (Sistema Interconectado Nacional) in each of Bolivia, Colombia and Guatemala; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “SING” means the Interconnected System of Norte Grande of Chile (Sistema Interconectado Norte Grande); and |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | “UPME” means the Mining and Energy Planning Unit (Unidad de Planeación Minero Energética), a special administrative unit of the Ministry of Mines and Energy of Colombia. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Industry and Other Terms Relevant to IC Power’s Operations |
|--|--------|------------------------------------------------------------------|

|  | · | “availability factor” means the percentage of hours a power generation unit is available for generation of electricity in the relevant period, whether or not the unit is actually dispatched or used for generating power; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “Btu” means British thermal units; |
|--|--------|------------------------------------------------|

|  | · | “CAGR” means compound annual growth rate; |
|--|--------|-------------------------------------------------------|

|  | · | “COD” means the commercial operation date of a development project; |
|--|--------|---------------------------------------------------------------------------------|

----

|  | · | “distribution” refers to the transfer of electricity from the transmission lines at grid supply points and its delivery to consumers at lower voltages through a distribution system; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “EPC” means engineering, procurement and construction; |
|--|--------|--------------------------------------------------------------------|

|  | · | “firm capacity” means the amount of energy available for production that, pursuant to applicable regulations, must be guaranteed to be available at a given time for injection to a certain power grid; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “greenfield projects” means projects constructed on unused land with no need to demolish or remodel existing structures; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “GWh” means gigawatt hours (one GWh is equal to 1,000 MWh); |
|--|--------|-------------------------------------------------------------------------|

|  | · | “Heat rate” means the number of British thermal units, or Btus, of energy contained in the fuel required to produce a kilowatt-hour of energy (btu/kWh) for thermal plants; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “HFO” means heavy fuel oil; |
|--|--------|-----------------------------------------|

|  | · | “hydro” means hydroelectric; |
|--|--------|------------------------------------------|

|  | · | “IC Power’s capacity” or “IC Power’s installed capacity” means, with respect to each asset, 100% of the capacity of such asset, regardless of IC Power’s ownership interest in the entity that owns such asset; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “proportionate capacity” means, with respect to each asset, the proportionate capacity of such asset, as determined by IC Power’s ownership interest in the entity that owns such asset; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “installed capacity” means the intended full-load sustained output of energy that a generation unit is designed to produce (also referred to as name-plate capacity); |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “IPP” means independent power producer, excluding co-generators and generators for self-consumption; |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | “kWh” means kilowatts per hour; |
|--|--------|---------------------------------------------|

|  | · | “MW” means megawatts (one MW is equal to 1,000 kilowatts or KW); |
|--|--------|------------------------------------------------------------------------------|

|  | · | “MWh” means megawatt per hour; |
|--|--------|--------------------------------------------|

|  | · | “OEM” means original equipment manufacturer; |
|--|--------|----------------------------------------------------------|

|  | · | “PPA” means power purchase agreement; |
|--|--------|---------------------------------------------------|

|  | · | “transmission” refers to the bulk transfer of electricity from generating facilities to the distribution system at load center station in which the electricity is stabilized by means of the transmission grid; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “VAD” means the Value Added by Distribution (Valor Agregado de Distribución) charge that is set by the CNEE; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

|  | · | “VNR” means variable transmission revenue and VNR of transmission system is the estimated cost of replicating a “model” transmission system including an estimated return on capital; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “VNR of the transmission system” means the estimated cost of replacing a “model” transmission system, including an estimated return on capital; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | “weighted average availability” refers to the number of hours that a generation facility is available to produce electricity divided by the total number of hours in a year. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|       |   | RMB/U.S. Dollar |   |
|------------|--------|-----------------|--------|
| Year       |   | Period end1     |   |   | Average rate2 |   |   | High |   |   | Low |   |
| 2012  |   |            | 6.2301 |   |   |   | 6.2990 |   |   |   | 6.3879 |   |   |   | 6.2221 |   |
| 2013  |   |            | 6.0537 |   |   |   | 6.1412 |   |   |   | 6.2438 |   |   |   | 6.0537 |   |
| 2014  |   |            | 6.2046 |   |   |   | 6.1701 |   |   |   | 6.2591 |   |   |   | 6.0402 |   |
| 2015  |   |            | 6.4778 |   |   |   | 6.2869 |   |   |   | 6.4896 |   |   |   | 6.1870 |   |
| 2016  |   |            | 6.9430 |   |   |   | 6.6549 |   |   |   | 6.9580 |   |   |   | 6.4480 |   |

| 1. | Represents the closing exchange rate on the last business day of the applicable period. |
|----|-----------------------------------------------------------------------------------------|

| 2. | Represents the average of the closing exchange rates on the last business day of each month during the relevant one-year periods. |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | RMB/U.S. Dollar |   |
|-------------------------------------|--------|-----------------|--------|
| Month                               |   | High            |   |   | Low |   |
| October 2016                   |   |            | 6.7819 |   |   |   | 6.6685 |   |
| November 2016                  |   |            | 6.9195 |   |   |   | 6.7534 |   |
| December 2016                  |   |            | 6.9580 |   |   |   | 6.8771 |   |
| January 2017                   |   |            | 6.9575 |   |   |   | 6.8360 |   |
| February 2017                  |   |            | 6.8821 |   |   |   | 6.8517 |   |
| March 2017                     |   |            | 6.9132 |   |   |   | 6.8687 |   |
| April 2017 (through April 14)  |   |            | 6.8988 |   |   |   | 6.8832 |   |

----

|  | · | our goals and strategies; |
|--|--------|---------------------------|

|  | · | our capital commitments and/or intentions with respect to each of our businesses; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | our ability to implement, successfully or at all, our strategies for us and for each of our businesses; |
|--|--------|---------------------------------------------------------------------------------------------------------|

|  | · | our capital allocation principles, as set forth in “Item 4.B Business Overview”; |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | the funding requirements, strategies, and business plans of our businesses; |
|--|--------|-----------------------------------------------------------------------------|

|  | · | the potential listing, offering, distribution or monetization of our businesses and the anticipated timing thereof; |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | expected trends in the industries in which each of our businesses operate, including trends relating to the growth of a particular market; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | our expected tax status and treatment; |
|--|--------|----------------------------------------|

|  | · | our intention to borrow funds from our businesses, and the amount and the timing of such borrowings; |
|--|--------|------------------------------------------------------------------------------------------------------|

|  | · | fluctuations in the availability and prices of commodities purchased by, or in competition with, our businesses; |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | statements relating to litigation and/or regulatory proceedings; |
|--|--------|------------------------------------------------------------------|

|  | · | the expected effect of new accounting standards on Kenon; |
|--|--------|-----------------------------------------------------------|

|  | · | with respect to IC Power: |
|--|--------|---------------------------|

|  | · | expected supply and demand trends in the Peruvian power market; |
|--|--------|-----------------------------------------------------------------|

|  | · | the expected cost and timing of commencement and completion of construction and development projects, as well as the anticipated installed capacities and business results of such acquisitions or projects; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | its strategy to source and finance new, development and acquisition projects; |
|--|--------|-------------------------------------------------------------------------------|

|  | · | expected macroeconomic trends in certain of the countries in which IC Power currently operates; |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | its strategy to source and enter into long-term PPAs, and turnkey agreements and the amounts to be paid under such agreements, and the expected effect of such PPAs on IC Power’s results of operations; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | expected increased demand in certain of the power generation markets where IC Power currently operates or may operate in the future; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | · | expected trends in energy consumption, particularly in Latin America; |
|--|--------|-----------------------------------------------------------------------|

|  | · | the expected stages of the Samay I plant; |
|--|--------|-------------------------------------------|

|  | · | its anticipated capital expenditures, including the expected sources of funding for capital expenditures; |
|--|--------|-----------------------------------------------------------------------------------------------------------|

----

|  | · | its strategy to improve service standards, reduce interruptions and improve customer service for its distribution business; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------|

|  | · | the expected revenues under its PPAs; |
|--|--------|---------------------------------------|

|  | · | the expected effect of fluctuations in exchange rates and currency on IC Power’s results; |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | its strategy to acquire additional generation and distribution businesses; |
|--|--------|----------------------------------------------------------------------------|

|  | · | the expected cash flows from its distribution businesses; |
|--|--------|-----------------------------------------------------------|

|  | · | future subsidies available to IC Power’s businesses and distribution customers; |
|--|--------|---------------------------------------------------------------------------------------|

|  | · | expected trends in electrification levels in Guatemala; |
|--|--------|---------------------------------------------------------|

|  | · | the competitive landscape within Energuate’s service areas; |
|--|--------|-------------------------------------------------------------------|

|  | · | its expected ability to enter into or renew its PPAs; |
|--|--------|-------------------------------------------------------|

|  | · | expected coverage under its insurance policies; |
|--|--------|-------------------------------------------------|

|  | · | the expected water supply for IC Power’s hydroelectric plants; |
|--|--------|----------------------------------------------------------------------|

|  | · | its strategy to extend the final maturity of or refinance existing indebtedness; |
|--|--------|----------------------------------------------------------------------------------|

|  | · | the expected use of the proceeds of its indebtedness; |
|--|--------|-------------------------------------------------------|

|  | · | the expected impairment of IC Power’s Colombian assets; |
|--|--------|---------------------------------------------------------------|

|  | · | the price and volume of gas available to OPC-Rotem and other IPPs in Israel; and |
|--|--------|----------------------------------------------------------------------------------|

|  | · | the potential nationalization of operating assets; |
|--|--------|----------------------------------------------------|

|  | · | with respect to Qoros: |
|--|--------|------------------------|

|  | · | Qoros’ expectation to renew or refinance its working capital facilities to support its continued operations and development; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Qoros’ strategy to increase its sales volumes; |
|--|--------|------------------------------------------------------|

|  | · | Qoros’ expected sales volumes; |
|--|--------|--------------------------------------|

|  | · | expected growth in the Chinese passenger vehicle market, particularly within the C-segment, C-segment SUV and New Energy Vehicle, or NEV, markets; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | expected pricing trends in the Chinese passenger vehicle market; |
|--|--------|------------------------------------------------------------------|

|  | · | Qoros’ liquidity position and Qoros’ expected use of proceeds of funds it may receive; |
|--|--------|----------------------------------------------------------------------------------------------------|

|  | · | Qoros’ strategy to develop its dealer network; |
|--|--------|------------------------------------------------------|

|  | · | the assumptions used in Qoros’ impairment analysis, including assumptions related to future sales volumes and price, operating expenses, and the availability of funding, including certain subsidies from local Chinese governments during the projection period; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | expected increase in environmental regulations and the expected effect of such regulations on Qoros’ business; |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | · | Qoros’ agreement to have certain principal payments deferred; |
|--|--------|---------------------------------------------------------------------|

|  | · | Qoros’ ability to increase its production capacity; |
|--|--------|-----------------------------------------------------------|

|  | · | the terms of any shareholder loans which Kenon may provide Qoros; |
|--|--------|-------------------------------------------------------------------|

|  | · | the potential investment by Yibin into Qoros, including the use of the proceeds and the terms of such investment; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

----

|  | · | Qoros’ ability to launch new models using its existing platform, to the extent that demand for its vehicles increases; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | · | the expected development of the NEV market in China, including expected trends regarding government subsidies for the purchase of NEVs and the growth of NEV infrastructure. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | with respect to ZIM: |
|--|--------|----------------------|

|  | · | the assumptions used in Kenon’s and ZIM’s impairment analysis with respect to Kenon’s investment in ZIM, and ZIM’s assets, respectively, including with respect to expected fuel price, freight rates, demand trends; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | ZIM’s strategy with respect to its debt obligations; |
|--|--------|------------------------------------------------------------|

|  | · | modifications with respect to its and other shipping companies’ operating fleet and lines, including the utilization of larger vessels within certain trade zones and modifications made in light of environmental regulations; and |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | trends related to the global container shipping industry, including with respect to fluctuations in container supply, industry consolidation, demand, bunker prices and charter/freights rates; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | with respect to Primus: |
|--|--------|-------------------------|

|  | · | its strategy; |
|--|--------|---------------|

|  | · | its plans to raise capital; |
|--|--------|-----------------------------|

|  | · | Primus’ potential customers; |
|--|--------|------------------------------------|

|  | · | its project pipeline; and |
|--|--------|---------------------------|

|  | · | its potential sources of revenue. |
|--|--------|-----------------------------------|

----

----

|                                                                                                             |   | Year Ended December 31,                 |    |
|------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                             |   | 2016                                    |    |   | 2015 |   |   | 2014 |   |   | 20131 |   |   | 20121 |   |
|                                                                                                             |   | (in millions of USD, except share data) |    |
| Statements of Profit and Loss Data2                                                                              |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues from sale of electricity                                                                           |   | $                                       | 1,874   |   |   | $ | 1,289 |   |   | $ | 1,372 |   |   | $ | 873 |   |   | $ | 577 |   |
| Cost of sales and services (excluding depreciation)                                                         |   |                                    | (1,359  | ) |   |   | (863 | ) |   |   | (981 | ) |   |   | (594 | ) |   |   | (395 | ) |
| Depreciation                                                                                                |   |                                    | (160    | ) |   |   | (111 | ) |   |   | (100 | ) |   |   | (70 | ) |   |   | (51 | ) |
| Gross profit                                                                                                |   | $                                       | 355     |   |   | $ | 315 |   |   | $ | 291 |   |   | $ | 209 |   |   | $ | 131 |   |
| Selling, general and administrative expenses                                                                |   |                                    | (147    | ) |   |   | (104 | ) |   |   | (131 | ) |   |   | (73 | ) |   |   | (69 | ) |
| Gain from distribution of dividend in kind                                                                  |   |                                    | — |   |   |   | 210 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Gain from disposal of investees                                                                             |   |                                    | — |   |   |   | — |   |   |   | 157 |   |   |   | — |   |   |   | 5 |   |
| Gain on bargain purchase                                                                                    |   |                                    | — |   |   |   | — |   |   |   | 68 |   |   |   | 1 |   |   |   | — |   |
| Impairment of assets and investments                                                                        |   |                                    | (72     | ) |   |   | (6 | ) |   |   | (48 | ) |   |   | — |   |   |   | — |   |
| Dilution gains from reduction in equity interest held in associates                                              |   |                                    | — |   |   |   | 33 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other expenses                                                                                              |   |                                    | (5      | ) |   |   | (7 | ) |   |   | (14 | ) |   |   | (5 | ) |   |   | — |   |
| Other income                                                                                                |   |                                    | 21      |   |   |   | 15 |   |   |   | 51 |   |   |   | 5 |   |   |   | 12 |   |
| Operating profit from continuing operations                                                                 |   | $                                       | 152     |   |   | $ | 456 |   |   | $ | 374 |   |   | $ | 137 |   |   | $ | 79 |   |
| Financing expenses                                                                                          |   |                                    | (190    | ) |   |   | (124 | ) |   |   | (110 | ) |   |   | (69 | ) |   |   | (39 | ) |
| Financing income                                                                                            |   |                                    | 19      |   |   |   | 13 |   |   |   | 16 |   |   |   | 5 |   |   |   | 3 |   |
| Financing expenses, net                                                                                     |   | $                                       | (171    | ) |   | $ | (111 | ) |   | $ | (94 | ) |   | $ | (64 | ) |   | $ | (36 | ) |
| Provision of financial guarantee                                                                            |   |                                    | (130    | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Share in losses of associated companies, net of tax3                                                        |   |                                    | (186    | ) |   |   | (187 | ) |   |   | (171 | ) |   |   | (127 | ) |   |   | (52 | ) |
| Profit / (loss) from continuing operations before income taxes                                                   |   | $                                       | (335    | ) |   | $ | 158 |   |   | $ | 109 |   |   | $ | (54 | ) |   | $ | (9 | ) |
| Income taxes                                                                                                |   |                                    | (59     | ) |   |   | (62 | ) |   |   | (103 | ) |   |   | (49 | ) |   |   | (20 | ) |
| Profit / (loss) for the year from continuing operations                                                          |   |                                    | (394    | ) |   | $ | 96 |   |   | $ | 6 |   |   | $ | (103 | ) |   | $ | (29 | ) |
| Profit / (loss) for the year from discontinued operations (after taxes)4                                         |   |                                    | — |   |   |   | — |   |   | $ | 471 |   |   | $ | (513 | ) |   | $ | (409 | ) |
| Profit / (loss) for the year                                                                                |   | $                                       | (394    | ) |   | $ | 96 |   |   | $ | 477 |   |   | $ | (616 | ) |   | $ | (438 | ) |
| Attributable to:                                                                                                 |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                                                                  |   | $                                       | (412    | ) |   | $ | 73 |   |   | $ | 458 |   |   | $ | (631 | ) |   | $ | (450 | ) |
| Non-controlling interests                                                                                   |   |                                    | 18      |   |   |   | 23 |   |   |   | 19 |   |   |   | 15 |   |   |   | 12 |   |
| Profit / (loss) for the year attributable to Kenon’s shareholders derived from:                            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| IC Power                                                                                                    |   | $                                       | 3       |   |   | $ | 63 |   |   | $ | 199 |   |   | $ | 61 |   |   | $ | 59 |   |
| Qoros                                                                                                       |   |                                    | (143    | ) |   |   | (196 | ) |   |   | (175 | ) |   |   | (127 | ) |   |   | (54 | ) |
| ZIM                                                                                                         |   |                                    | (54     | ) |   |   | 1 |   |   |   | (142 | ) |   |   | (533 | ) |   |   | (432 | ) |
| Gain from ZIM in light of deconsolidation and change to associated company                                       |   |                                    | — |   |   |   | — |   |   |   | 609 |   |   |   | — |   |   |   | — |   |
| Tower                                                                                                       |   |                                    | — |   |   |   | (1 | ) |   |   | 10 |   |   |   | (27 | ) |   |   | (21 | ) |
| Impairment of ZIM                                                                                           |   |                                    | (72     | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Provision of financial guarantee                                                                            |   |                                    | (130    | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Gain from distribution of dividend in kind                                                                  |   |                                    | — |   |   |   | 210 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other5                                                                                                      |   |                                    | (16     | ) |   |   | (4 | ) |   |   | (43 | ) |   |   | (5 | ) |   |   | (2 | ) |
| Total profit / (loss) for the year attributable to Kenon’s shareholders                                    |   | $                                       | (412    | ) |   | $ | 73 |   |   | $ | 458 |   |   | $ | (631 | ) |   | $ | (450 | ) |
| Basic/diluted (loss)/profit per share attributable to Kenon’s shareholders (in dollars):                   |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic/diluted profit/(loss) per share                                                                       |   |                                    | (7.67   | ) |   |   | 1.36 |   |   |   | 8.58 |   |   |   | (11.82 | ) |   |   | (8.43 | ) |
| Basic/diluted profit/(loss) per share from continuing operations                                                 |   |                                    | (7.67   | ) |   |   | 1.36 |   |   |   | (0.23 | ) |   |   | (2.13 | ) |   |   | (0.77 | ) |
| Basic/diluted profit/(loss) per share from discontinued operations                                               |   |                                    | — |   |   |   | — |   |   |   | 8.81 |   |   |   | (9.69 | ) |   |   | (7.66 | ) |
| Statements of Financial Position Data                                                                            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                   |   | $                                       | 327     |   |   | $ | 384 |   |   | $ | 610 |   |   | $ | 671 |   |   | $ | 414 |   |
| Short-term investments and deposits                                                                         |   |                                    | 90      |   |   |   | 309 |   |   |   | 227 |   |   |   | 30 |   |   |   | 89 |   |
| Trade receivables, net                                                                                      |   |                                    | 284     |   |   |   | 124 |   |   |   | 181 |   |   |   | 358 |   |   |   | 323 |   |
| Other current assets, including derivatives                                                                 |   |                                    | 50      |   |   |   | 45 |   |   |   | 59 |   |   |   | 98 |   |   |   | 83 |   |
| Income tax receivable                                                                                       |   |                                    | 11      |   |   |   | 4 |   |   |   | 4 |   |   |   | 7 |   |   |   | 15 |   |
| Inventories                                                                                                 |   |                                    | 92      |   |   |   | 51 |   |   |   | 55 |   |   |   | 150 |   |   |   | 174 |   |
| Total current assets                                                                                        |   |                                    | 854     |   |   |   | 916 |   |   |   | 1,136 |   |   | $ | 1,314 |   |   | $ | 1,098 |   |
| Total non-current assets6                                                                                   |   |                                    | 4,284   |   |   |   | 3,567 |   |   |   | 3,184 |   |   |   | 4,671 |   |   |   | 4,880 |   |
| Total assets                                                                                                |   | $                                       | 5,138   |   |   | $ | 4,483 |   |   | $ | 4,320 |   |   | $ | 5,985 |   |   | $ | 5,978 |   |
| Total current liabilities                                                                                   |   |                                    | 1,045   |   |   |   | 653 |   |   | $ | 497 |   |   | $ | 2,925 |   |   | $ | 1,172 |   |
| Total non-current liabilities                                                                               |   | $                                       | 3,199   |   |   | $ | 2,566 |   |   | $ | 2,385 |   |   | $ | 2,113 |   |   | $ | 3,357 |   |
| Equity attributable to the owners of the Company                                                            |   |                                    | 681     |   |   |   | 1,061 |   |   |   | 1,230 |   |   |   | 710 |   |   |   | 1,214 |   |
| Share capital                                                                                               |   | $                                       | 1,267   |   |   | $ | 1,267 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total equity                                                                                                |   | $                                       | 894     |   |   | $ | 1,264 |   |   | $ | 1,438 |   |   | $ | 947 |   |   | $ | 1,449 |   |
| Total liabilities and equity                                                                                |   | $                                       | 5,138   |   |   | $ | 4,483 |   |   | $ | 4,320 |   |   | $ | 5,985 |   |   | $ | 5,978 |   |
| Basic/Diluted weighted average common shares outstanding used in calculating profit/(loss) per share (thousands) |   |                                    | 53,720  |   |   |   | 53,649 |   |   |   | 53,383 | 7  |   |   | 53,383 | 7  |   |   | 53,383 | 7  |
| Statements of Cash Flow Data                                                                                     |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                                   |   | $                                       | 162     |   |   | $ | 290 |   |   | $ | 410 |   |   | $ | 257 |   |   | $ | 169 |   |
| Net cash used in investing activities                                                                       |   |                                    | (400    | ) |   |   | (737 | ) |   |   | (883 | ) |   |   | (278 | ) |   |   | (320 | ) |
| Net cash provided by financing activities                                                                   |   |                                    | 175     |   |   |   | 233 |   |   |   | 430 |   |   |   | 281 |   |   |   | 122 |   |
| (Decrease) / increase in cash and cash equivalents                                                          |   |                                    | (63     | ) |   |   | (214 | ) |   |   | (42 | ) |   |   | 260 |   |   |   | (29 | ) |

----

| 1. | Results during these periods have been reclassified to reflect the discontinued operations of ZIM and Petrotec. For further information, see Note 28 to our financial statements included in this annual report. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Consists of the consolidated results of IC Power and Primus for 2012 through 2013 and, from June 30, 2014, the consolidated results of HelioFocus; prior to this date, Kenon did not consolidate HelioFocus’ results of operations. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Includes Kenon’s share in ZIM’s loss for the six months ended December 31, 2014 and the years ended December 31, 2015 and 2016. As from July 1, 2014, Kenon accounted for ZIM’s results of operations pursuant to the equity method of accounting. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Consists of (i) ZIM’s results of operations for 2012 through 2013 and the six months ended June 30, 2014 and (ii) Petrotec’s results of operations for 2012 through 2014. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | Consists of the elimination of intercompany finance income until 2014, Kenon’s general and administrative expenses, finance expenses, the results of Primus and gain from reductions in equity invested. From June 30, 2014, also includes the consolidated results of HelioFocus. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Includes Kenon’s associated companies: (i) Qoros, (ii) Tower (until June 30, 2015), (iii) from June 30, 2014, ZIM; and (iv) prior to June 30, 2014, HelioFocus. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Based on 53,383,015 shares which were issued as of January 7, 2015, the date of our spin-off from IC. |
|----|-------------------------------------------------------------------------------------------------------|

|                                                             |   | Year Ended December 31, 2016                     |    |
|------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                             |   | IC PowerGeneration                               |    |   | IC Power Distribution |   |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   | (in millions of USD, unless otherwise indicated) |    |
| Sales                                                       |   | $                                                | 1,365   |   |   | $ | 509 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 1,874 |   |
| Depreciation and amortization                               |   |                                             | (157    | ) |   |   | (15 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (172 | ) |
| Impairment of assets and investments                        |   |                                             | — |   |   |   | — |   |   |   | — |   |   |   | (72 | ) |   |   | — |   |   |   | (72 | ) |
| Financing income                                            |   |                                             | 10      |   |   |   | 4 |   |   |   | — |   |   |   | 17 |   |   |   | (12 | ) |   |   | 19 |   |
| Financing expenses                                          |   |                                             | (166    | ) |   |   | 19 |   |   |   | — |   |   |   | 17 |   |   |   | (12 | ) |   |   | 190 |   |
| Share in (losses) income of associated companies                 |   |                                             | 1       |   |   |   | — |   |   |   | (143 | ) |   |   | (44 | ) |   |   | — |   |   |   | (186 | ) |
| Provision of financial guarantee                            |   |                                             | — |   |   |   | — |   |   |   | — |   |   |   | (130 | ) |   |   | — |   |   |   | (130 | ) |
| Income (loss) before taxes                                  |   | $                                                | 31      |   |   | $ | 47 |   |   | $ | (143 | ) |   | $ | (270 | ) |   | $ | — |   |   | $ | (335 | ) |
| Income taxes                                                |   |                                             | (45     | ) |   |   | (12 | ) |   |   | — |   |   |   | (2 | ) |   |   | — |   |   |   | (59 | ) |
| Income (loss) from continuing operations                    |   | $                                                | (14     | ) |   | $ | 35 |   |   | $ | (143 | ) |   | $ | (272 | ) |   | $ | — |   |   | $ | (394 | ) |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                 |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                       |   |                                             | (29     | ) |   |   | 32 |   |   |   | (143 | ) |   |   | (272 | ) |   |   | — |   |   |   | (412 | ) |
| Non-controlling interests                                        |   |                                             | 15      |   |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 18 |   |
| Segment assets4                                             |   | $                                                | 4,217   |   |   | $ | 600 |   |   | $ | — |   |   | $ | 113 | 5  |   | $ | — |   |   | $ | 4,930 |   |
| Investments in associated companies                         |   |                                             | 8       |   |   |   | — |   |   |   | 118 |   |   |   | 82 |   |   |   | — |   |   |   | 208 |   |
| Segment liabilities                                         |   |                                             | 3,462   |   |   |   | 542 |   |   |   | — |   |   |   | 240 | 6  |   |   | — |   |   |   | 4,244 |   |
| Capital expenditure7                                        |   |                                             | 262     |   |   |   | 28 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 290 |   |
| Adjusted EBITDA                                             |   | $                                                | 343     | 8  |   | $ | 77 | 9  |   | $ | — |   |   | $ | (24 | )10 |   | $ | — |   |   | $ | 396 |   |
| Percentage of consolidated revenues                         |   |                                             | 73      | % |   |   | 27 | % |   |   | — | % |   |   | — | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                                             | 82      | % |   |   | 12 | % |   |   | 2 | % |   |   | 4 | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                                             | 86      | % |   |   | 12 | % |   |   | — | % |   |   | 2 | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                                             | 87      | % |   |   | 19 | % |   |   | — | % |   |   | (6 | )% |   |   | — | % |   |   | 100 | % |

----

| 1. | Associated company. |
|----|---------------------|

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment financing income and expenses. |
|----|---------------------------------------------------------------------------------|

| 4. | Excludes investments in associates. |
|----|-------------------------------------|

| 5. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 6. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 7. | Includes the additions of Property, Plant and Equipment, or PP&E, and intangibles based on an accrual basis. |
|----|------------------------------------------------------------------------------------------------------------------|

| 8. | With respect to IC Power Generation’s Adjusted EBITDA for the year ended December 31, 2016, Kenon defines “Adjusted EBITDA” as net income for the period before depreciation and amortization, finance expenses, net, and income tax expense, excluding share in (income) of associate. 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 income or loss, cash flow from operations or other measures of operating performance or liquidity determined in accordance with IFRS. Adjusted 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. Adjusted 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 IC Power Generation’s net income to its Adjusted EBITDA for the period presented. Other companies may calculate EBITDA differently, and therefore this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Year Ended December 31, |   |
|--------------------------------------|--------|-------------------------|--------|
|                                 |   | 2016                    |   |
|                                 |   | ($ millions)            |   |
| Net income for the period       |   | $                       | (14    | ) |
| Depreciation and amortization   |   |                    | 157    |   |
| Financing expenses, net         |   |                    | 156    |   |
| Income tax expense              |   |                    | 45     |   |
| Share in (income) of associate  |   |                    | (1     | ) |
|                                 |   |                    |   |   |
| Adjusted EBITDA                 |   | $                       | 343    |   |

| 9. | With respect to IC Power Distribution’s Adjusted EBITDA for the year ended December 31, 2016, Kenon defines “Adjusted EBITDA” as net income for the period before depreciation and amortization, finance expenses, 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 income or loss, cash flow from operations or other measures of operating performance or liquidity determined in accordance with IFRS. Adjusted 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. Adjusted 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 IC Power Distribution’s net income to its Adjusted EBITDA, as reported by Kenon, for the periods presented. Other companies may calculate EBITDA differently, and therefore this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Year Ended December 31, |   |
|-------------------------------------|--------|-------------------------|--------|
|                                |   | 2016                    |   |
|                                |   | ($ millions)            |   |
| Net income for the period      |   | $                       | 35     |   |
| Depreciation and amortization  |   |                    | 15     |   |
| Financing expenses, net        |   |                    | 15     |   |
| Income tax expense             |   |                    | 12     |   |
|                                |   |                    |   |   |
| Adjusted EBITDA                |   | $                       | 77     |   |

| 10. | With respect to its “Other” reporting segment, Kenon defines “Adjusted EBITDA” as net income (loss) for the period before finance expenses, net, depreciation and amortization, impairment of assets and investments, provision of financial guarantees and income tax expense, excluding gain from distribution of dividend in kind and share in (income) loss of associated companies, net of tax. 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 income or loss, cash flow from operations or other measures of operating performance or liquidity determined in accordance with IFRS. Adjusted 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. Adjusted 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 Adjusted EBITDA for the periods presented. Other companies may calculate EBITDA differently, and therefore this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Year Ended December 31, |    |
|--------------------------------------------------------------|--------|-------------------------|---------|
|                                                         |   | 2016                    |    |   | 2015 |   |   | 2014 |   |
|                                                         |   | (in millions of USD)    |    |
| Net income (loss) for the period                        |   | $                       | (272    | ) |   | $ | 205 |   |   | $ | (41 | ) |
| Finance expenses, net                                   |   |                    | — |   |   |   | 7 |   |   |   | (29 | ) |
| Depreciation and amortization                           |   |                    | — |   |   |   | 1 |   |   |   | — |   |
| Impairment of assets and investments                         |   |                    | 72      |   |   |   | 7 |   |   |   | 13 |   |
| Provision of financial guarantees                       |   |                    | 130     |   |   |   | — |   |   |   | — |   |
| Income tax expense                                      |   |                    | 2       |   |   |   | — |   |   |   | 4 |   |
| Gain from distribution of dividend in kind                   |   |                    | — |   |   |   | (210 | ) |   |   | — |   |
| Share in (income) loss from associated companies, net of tax |   |                    | 44      |   |   |   | (9 | ) |   |   | 10 |   |
| Adjusted EBITDA                                         |   | $                       | (24     | ) |   | $ | 1 |   |   | $ | (43 | ) |

----

|                                                             |   | Year Ended December 31, 2015                     |    |
|------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                             |   | IC Power                                         |    |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   | (in millions of USD, unless otherwise indicated) |    |
| Sales                                                       |   | $                                                | 1,294   |   |   | $ | — |   |   | $ | — |   |   | $ | (5 | ) |   | $ | 1,289 |   |
| Depreciation and amortization                               |   |                                             | (119    | ) |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | (120 | ) |
| Asset impairment                                            |   |                                             | — |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | (7 | ) |
| Financing income                                            |   |                                             | 10      |   |   |   | — |   |   |   | 3 |   |   |   | — |   |   |   | 13 |   |
| Financing expenses                                          |   |                                             | (115    | ) |   |   | — |   |   |   | (9 | ) |   |   | — |   |   |   | (124 | ) |
| Share in (losses) income of associated companies                 |   |                                             | — |   |   |   | (196 | ) |   |   | 9 |   |   |   | — |   |   |   | (187 | ) |
| Gain from distribution of dividend in kind                  |   |                                             | — |   |   |   | — |   |   |   | 210 |   |   |   | — |   |   |   | 210 |   |
| Income (loss) before taxes                                  |   | $                                                | 149     |   |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 158 |   |
| Income taxes                                                |   |                                             | (62     | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (62 | ) |
| Income (loss) from continuing operations                    |   | $                                                | 87      | 4  |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 96 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                 |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                  |   |                                             | 63      |   |   |   | (196 | ) |   |   | 206 |   |   |   | — |   |   |   | 73 |   |
| Non-controlling interests                                   |   |                                             | 24      |   |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | 23 |   |
| Segment assets5                                             |   | $                                                | 4,069   |   |   | $ | — |   |   | $ | 45 | 6  |   | $ | — |   |   | $ | 4,114 |   |
| Investments in associated companies                         |   |                                             | 9       |   |   |   | 159 |   |   |   | 201 |   |   |   | — |   |   |   | 369 |   |
| Segment liabilities                                         |   |                                             | 3,063   |   |   |   | — |   |   |   | 156 | 7  |   |   | — |   |   |   | 3,219 |   |
| Capital expenditure8                                        |   |                                             | 533     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 533 |   |
| Adjusted EBITDA                                             |   | $                                                | 372     | 4,9  |   | $ | — |   |   | $ | 1 | 10  |   | $ | — |   |   | $ | 373 |   |
| Percentage of consolidated revenues                         |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                                             | 91      | % |   |   | 4 | % |   |   | 5 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                                             | 99      | % |   |   | — |   |   |   | 1 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |

----

| 1. | Associated company. |
|----|---------------------|

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM and Tower (up to June 30, 2015), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment sales. |
|----|---------------------------------------------------------|

| 4. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Excludes investments in associates. |
|----|-------------------------------------|

| 6. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 7. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 8. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 9. | Kenon defines IC Power’s “Adjusted EBITDA” as net income for the period before depreciation and amortization, finance expenses, net, asset impairment and income tax expense, excluding share in (income) of associated companies, gain on bargain purchase and gain from disposal of investees. 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 income or loss, cash flow from operations or other measures of operating performance or liquidity determined in accordance with IFRS. Adjusted 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. Adjusted 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 IC Power’s net income (loss), as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the periods presented. Other companies may calculate EBITDA differently, and therefore this presentation of Adjusted EBITDA may not be comparable to other similarly titled measures used by other companies. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Adjusted EBITDA is a non-IFRS measure. For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see footnote 10 to the preceding table setting forth the selected financial data for the year ended December 31, 2015. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | Year Ended December 31, |    |
|-------------------------------------------|--------|-------------------------|---------|
|                                      |   | 2016                    |    |   | 2015 |   |   | 2014 |   |
|                                      |   | ($ millions)            |    |
| Net income for the period            |   | $                       | 21      |   |   | $ | 87 |   |   | $ | 222 |   |
| Depreciation and amortization        |   |                    | 172     |   |   |   | 119 |   |   |   | 108 |   |
| Financing expenses, net              |   |                    | 171     |   |   |   | 104 |   |   |   | 123 |   |
| Asset impairment                     |   |                    | — |   |   |   | — |   |   |   | 35 |   |
| Income tax expense                   |   |                    | 57      |   |   |   | 62 |   |   |   | 99 |   |
| Share in (income) of associated companies |   |                    | (1      | ) |   |   | — |   |   |   | (14 | ) |
| Gain on bargain purchase             |   |                    | — |   |   |   | — |   |   |   | (68 | ) |
| Gain from disposal of investees      |   |                    | — |   |   |   | — |   |   |   | (157 | ) |
|                                      |   |                    |    |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA                      |   | $                       | 420     |   |   | $ | 372 |   |   |   | 348 |   |

----

|                                                         |   | Year Ended December 31, 20141                    |   |
|--------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                         |   | IC Power                                         |   |   | Qoros2 |   |   | Other3 |   |   | Adjustments4 |   |   | Combined Carve-Out Results |   |
|                                                         |   | (in millions of USD, unless otherwise indicated) |   |
| Sales                                                   |   | $                                                | 1,358  |   |   | $ | — |   |   | $ | — |   |   | $ | 14 |   |   | $ | 1,372 |   |
| Depreciation and amortization                           |   |                                             | (108   | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (108 | ) |
| Financing income                                        |   |                                             | 9      |   |   |   | — |   |   |   | 39 |   |   |   | (32 | ) |   |   | 16 |   |
| Financing expenses                                      |   |                                             | (132   | ) |   |   | — |   |   |   | (10 | ) |   |   | 32 |   |   |   | (110 | ) |
| Share in (losses) income of associated companies             |   |                                             | 14     |   |   |   | (175 | ) |   |   | (10 | ) |   |   | — |   |   |   | (171 | ) |
| Asset impairment                                        |   |                                             | (35    | ) |   |   | — |   |   |   | (13 | ) |   |   | — |   |   |   | (48 | ) |
| Gain from disposal of investee                          |   |                                             | 157    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 157 |   |
| Gain from bargain purchase                              |   |                                             | 68     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 68 |   |
| Income (loss) before taxes                              |   | $                                                | 321    |   |   | $ | (175 | ) |   | $ | (37 | ) |   | $ | — |   |   | $ | 109 |   |
| Income taxes                                            |   |                                             | (99    | ) |   |   | — |   |   |   | (4 | ) |   |   | — |   |   |   | (103 | ) |
| Income (loss) from continuing operations                     |   | $                                                | 222    | 5  |   | $ | (175 | ) |   | $ | (41 | ) |   | $ | — |   |   | $ | 6 |   |
| Attributable to:                                             |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                              |   |                                             | 197    |   |   |   | (175 | ) |   |   | (34 | ) |   |   | — |   |   |   | (12 | ) |
| Non-controlling interests                               |   |                                             | 25     |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | 18 |   |
| Segment assets6                                         |   | $                                                | 3,832  |   |   | $ | — |   |   | $ | 837 | 7  |   | $ | (785 | ) |   | $ | 3,884 |   |
| Investments in associated companies                     |   |                                             | 10     |   |   |   | 221 |   |   |   | 205 |   |   |   | — |   |   |   | 436 |   |
| Segment liabilities                                     |   |                                             | 2,860  |   |   |   | — |   |   |   | 806 | 8  |   |   | (785 | ) |   |   | 2,881 |   |
| Capital expenditure9                                    |   |                                             | 593    |   |   |   | — |   |   |   | 12 |   |   |   | — |   |   |   | 605 |   |
| Adjusted EBITDA                                         |   | $                                                | 348    | 5,10  |   | $ | — |   |   | $ | (43 | )11 |   | $ | — |   |   | $ | 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 Adjusted EBITDA                  |   |                                             | 114    | % |   |   | — |   |   |   | (14 | )% |   |   | — |   |   |   | 100 | % |

----

| 1. | During 2015, an immaterial error was identified with respect to the deferred tax calculation relating to the effect of foreign exchange rate on non-monetary assets in previous years in IC Power. Kenon’s and IC Power’s financial information for 2014, 2013 and 2012 has been revised to correct this immaterial error. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Associated company. |
|----|---------------------|

| 3. | Includes financing income from former 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 (up to June 30, 2014), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | “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.” |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2014, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Excludes investments in associates. |
|----|-------------------------------------|

| 7. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 8. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 9. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 10. | For a reconciliation of IC Power’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2014, see footnote 9 to the preceding table setting forth selected financial data for the year ended December 31, 2014. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Adjusted EBITDA is a non-IFRS measure. For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see footnote 10 to the preceding table setting forth the selected financial data for the year ended December 31, 2014. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                         |   | IC Power Ltd. (formerly known as IC Power Pte. Ltd.) |   |   | I.C. Power Asia Development Ltd. (formerly known as I.C. Power Ltd.) |   |
|----------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                                                                         |   | Year Ended December 31,                              |   |
|                                                                                         |   | 2016                                                 |   |   | 2015                                                                 |   |   | 20141 |   |   | 20131 |   |   | 20121 |   |
|                                                                                         |   | ($ millions, except as otherwise indicated)          |   |
| Net income from continuing operations2                                                  |   |                                                 | 21     |   |                                                                 |   | 49 |   |   |   | 128 |   |   |   | 45 |   |   |   | 39 |   |
| Net income for the period                                                               |   |                                                 | 21     |   |                                                                 |   | 52 | 3  |   |   | 256 | 3  |   |   | 74 |   |   |   | 68 |   |
| Adjusted EBITDA4                                                                        |   |                                                 | 420    |   |                                                                 |   | 326 | 3  |   |   | 395 | 3  |   |   | 247 |   |   |   | 154 |   |
| Net Debt5                                                                               |   |                                                 | 2,764  |   |                                                                 |   | 1,903 |   |   |   | 1,557 |   |   |   | 1,143 |   |   |   | 1,001 |   |
| Installed capacity of operating companies and associated companies at end of period (MW)     |   |                                                 | 3,945  |   |                                                                 |   | 2,665 |   |   |   | 2,642 |   |   |   | 2,070 |   |   |   | 1,572 |   |
| Proportionate capacity of operating companies and associated companies at end of period (MW) |   |                                                 | 3,152  |   |                                                                 |   | 2,170 |   |   |   | 2,108 |   |   |   | 1,608 |   |   |   | 1,198 |   |
| Weighted average availability during the period (%)                                     |   |                                                 | 84     |   |                                                                 |   | 95 | % |   |   | 94 | % |   |   | 94 | % |   |   | 93 | % |
| Gross energy generated (GWh)                                                            |   |                                                 | 14,208 |   |                                                                 |   | 13,109 |   |   |   | 13,156 |   |   |   | 8,820 |   |   |   | 6,339 |   |
| Energy sold under PPAs (GWh)                                                            |   |                                                 | 14,582 |   |                                                                 |   | 13,748 |   |   |   | 14,220 |   |   |   | 9,217 |   |   |   | 5,365 |   |

----

| 1. | During 2015, an immaterial error was identified with respect to the deferred tax calculation relating to the effect of foreign exchange rate on non-monetary assets in previous years in ICP. ICP’s financial information for 2014, 2013 and 2012 has been revised to correct this immaterial error. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The share in net income attributable to non-controlling interests held by third parties in IC Power’s subsidiaries was $18 million, $17 million, $29 million, $13 million and $10 million for the years ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | IC Power’s Adjusted EBITDA and net income, as reported by Kenon, for the years ended December 31, 2015 and 2014 differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | IC Power defines “Adjusted EBITDA” for each period as net income (loss) for the period before depreciation and amortization, financing expenses, net, income tax expense and asset write-off, excluding share in (income) loss of associated companies, gain on bargain purchase, capital gains (excluding capital gains from sales of fixed assets), and net income from discontinued operations, net of tax (excluding dividends received from discontinued operations). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                   |   | IC Power Ltd. (formerly known as IC Power Pte. Ltd.) |    |   | I.C. Power Asia Development Ltd. (formerly known as I.C. Power Ltd.) |   |
|------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|
|                                                                                                                   |   | Year Ended December 31,                              |    |
|                                                                                                                   |   | 2016                                                 |    |   | 2015                                                                 |   |   | 2014(i) |   |   | 2013(i) |   |   | 2012(i) |   |   | 2011 |   |   | 2010(ii) |   |   | 2009(ii) |   |
|                                                                                                                   |   | ($ millions)                                         |    |
| Net income (loss) for the period                                                                                       |   | $                                                    | 21      |   |                                                                 | $      | 52 |   |   | $ | 256 |   |   | $ | 74 |   |   | $ | 68 |   |   | $ | 73 |   |   | $ | 36 |   |   | $ | 66 |   |
| Depreciation and amortization(iii)                                                                                     |   |                                                 | 172     |   |                                                                 |   | 119 |   |   |   | 108 |   |   |   | 76 |   |   |   | 55 |   |   |   | 41 |   |   |   | 28 |   |   |   | 26 |   |
| Financing expenses, net                                                                                           |   |                                                 | 171     |   |                                                                 |   | 104 |   |   |   | 119 |   |   |   | 80 |   |   |   | 44 |   |   |   | 36 |   |   |   | 24 |   |   |   | 18 |   |
| Income tax expense                                                                                                |   |                                                 | 57      |   |                                                                 |   | 50 |   |   |   | 63 |   |   |   | 48 |   |   |   | 18 |   |   |   | 16 |   |   |   | 6 |   |   |   | 8 |   |
| Asset write-off                                                                                                   |   |                                                 | — |   |                                                                 |   | — |   |   |   | 35 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Share in (income) loss of associated companies                                                                         |   |                                                 | (1      | )      |                                                                 |   | — |   |   |   | (2 | ) |   |   | (2 | ) |   |   | (2 | ) |   |   | (2 | ) |   |   | (1 | ) |   |   | (1 | ) |
| Gain on bargain purchase                                                                                          |   |                                                 | — |   |                                                                 |   | — |   |   | (71 | )(iv)  |   |   | (1 | ) |   |   | — |   |   |   | (24 | ) |   |   | — |   |   |   | — |   |
| Capital gains (excluding capital gains from sales of fixed assets)                                                     |   |                                                 | — |   |                                                                 |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (35 | ) |
| Net (income) loss from discontinued operations, net of tax (excluding dividends received from discontinued operations) |   |                                                 | — |   |                                                                 |   | — | (v)  |   | (113 | )(vi)  |   |   | (28 | ) |   |   | (29 | ) |   |   | (20 | ) |   |   | (11 | ) |   |   | (17 | ) |
| Adjusted EBITDA                                                                                                   |   | $                                                    | 420     |   |                                                                 | $      | 326 |   |   | $ | 395 |   |   | $ | 247 |   |   | $ | 154 |   |   | $ | 120 |   |   | $ | 82 |   |   | $ | 65 |   |

----

|  | (i) | During 2015, an immaterial error was identified with respect to the deferred tax calculation relating to the effect of foreign exchange rate on non-monetary assets in previous years in ICP. ICP’s financial information for 2014, 2013 and 2012 has been revised to correct this immaterial error. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | IC Power was incorporated in January 2010. Financial data for the year ended December 31, 2010 reflects the consolidated results of Inkia and OPC-Rotem from April 1, 2010 and June 30, 2010, respectively, the time of their transfer to IC Power. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Includes depreciation and amortization expenses from cost of sales and general, selling and administrative expenses. |
|--|-------|----------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Includes $68 million of income from gain on bargain purchase and $3 million of income from the measurement of fair value. |
|--|------|---------------------------------------------------------------------------------------------------------------------------|

|  | (v) | Excludes $4 million received from Enel Generación Perú post-equity method accounting, which is reflected as “dividends received post-equity accounting” in IC Power’s discontinued operations for that period, but is included in net income (loss) for the period, so is therefore included in Adjusted EBITDA for the period. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | Excludes $15 million received from Enel Generación Perú post-equity method accounting, which is reflected as “other income” in IC Power’s discontinued operations for that period, but is included in net income (loss) for the period, so is therefore included in Adjusted EBITDA for the period. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | Net Debt is calculated as total debt, excluding debt owed to Kenon, minus cash and short term deposits and restricted cash. Net Debt is not a measure recognized under IFRS. The table below sets forth a reconciliation of IC Power’s total debt to net debt. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | IC Power Ltd. (formerly known as IC Power Pte. Ltd.) |   |   | I.C. Power Asia Development Ltd. (formerly known as I.C. Power Ltd.) |   |
|---------------------|--------|------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                |   | As of December 31,                                   |   |
|                |   | 2016                                                 |   |   | 2015                                                                 |   |   | 2014 |   |   | 2013 |   |   | 2012 |   |
|                |   | ($ millions)                                         |   |
| Total debt(i)  |   | $                                                    | 3,072  |   |                                                                 | $      | 2,565 |   |   | $ | 2,348 |   |   | $ | 1,669 |   |   | $ | 1,266 |   |
| Cash(ii)       |   |                                                 | 308    |   |                                                                 |   | 662 |   |   |   | 791 |   |   |   | 526 |   |   |   | 265 |   |
| Net Debt       |   | $                                                    | 2,764  |   |                                                                 | $      | 1,903 |   |   | $ | 1,557 |   |   | $ | 1,143 |   |   | $ | 1,001 |   |

|  | (i) | Total debt comprises loans from banks and third parties and debentures, excluding liabilities of disposal group classified as held for sale and loans owed to Kenon, and includes long term and short term debt. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Includes short-term deposits and restricted cash of $106 million, $302 million, $208 million, $9 million and $81 million at December 31, 2016, 2015, 2014, 2013 and 2012, respectively. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Figure is derived from IC Power’s audited statements of financial position as of December 31, 2016. |
|----|-----------------------------------------------------------------------------------------------------------|

|                                                                                           |   | Year Ended December 31, 2016                |   |
|------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                           |   | Generation                                  |   |   |  |   |   | Distribution |   |   | Adjustments |   |   | ConsolidatedResults |   |
|                                                                                           |   | Peru                                        |   |   | Israel |   |   | CentralAmerica |   |   | Other1 |   |   | Guatemala |   |   |  |   |   |  |   |
|                                                                                           |   | ($ millions, except as otherwise indicated) |   |
| Sales                                                                                     |   |                                        | 528    |   |   |   | 356 |   |   |   | 326 |   |   |   | 157 |   |   |   | 509 |   |   |   | (2 | ) |   |   | 1,874 |   |
| Cost of Sales                                                                             |   |                                        | (323   | ) |   |   | (282 | ) |   |   | (252 | ) |   |   | (101 | ) |   |   | (403 | ) |   |   | 2 |   |   |   | (1,359 | ) |
| Operating income (loss)                                                                   |   |                                        | 129    |   |   |   | 40 |   |   |   | 21 |   |   |   | (15 | ) |   |   | 63 |   |   |   | 10 |   |   |   | 248 |   |
| Operating margins                                                                         |   |                                        | 24     | % |   |   | 11 | % |   |   | 6 | % |   |   | (10 | )% |   |   | 12 | % |   |   | (500 | )% |   |   | 13 | % |
| Financing expenses, net                                                                   |   |                                        | (63    | ) |   |   | (16 | ) |   |   | (12 | ) |   |   | (65 | ) |   |   | (15 | ) |   |   | - |   |   |   | (171 | ) |
| Net income (loss) for the period                                                          |   |                                        | 33     |   |   |   | 24 |   |   |   | 4 |   |   |   | (84 | ) |   |   | 35 |   |   |   | 9 |   |   |   | 21 |   |
|                                                                                           |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installed capacity of operating companies and associated companies at end of period (MW)  |   |                                        | 2,189  |   |   |   | 458 |   |   |   | 596 |   |   |   | 651 |   |   |   | - |   |   |   | - |   |   |   | 3,945 |   |
| Proportionate capacity of operating companies at end of period (MW)                       |   |                                        | 1,735  |   |   |   | 418 |   |   |   | 531 |   |   |   | 601 |   |   |   | - |   |   |   | - |   |   |   | 3,152 |   |
| Gross energy generated (GWh)                                                              |   |                                        | 6,811  |   |   |   | 3,589 |   |   |   | 1,898 |   |   |   | 1,910 |   |   |   | - |   |   |   | - |   |   |   | 14,208 |   |
| Energy sold under PPAs (GWh)                                                              |   |                                        | 6,691  |   |   |   | 3,996 |   |   |   | 2,815 |   |   |   | 1,080 |   |   |   | - |   |   |   | - |   |   |   | 14,582 |   |

----

| 1. | In addition to the results of certain of its generation assets, IC Power’s Other segment also includes expenses and other adjustments relating to its headquarters and intermediate holding companies, including purchase price allocations recorded in connection with our acquisition of Energuate, which allocations were recorded by Inkia, one of its intermediate holding companies. However, as IC Power’s Other segment is primarily composed of the financial results of certain of its generation assets and their related holding companies, IC Power analyzes the results of its Other segment within discussion of the results of its generation business. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                           |   | Year Ended December 31, 2015                |   |
|------------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                           |   | Peru                                        |   |   | Israel |   |   | CentralAmerica |   |   | Other1 |   |   | Adjustments |   |   | Consolidated Results |   |
|                                                                                           |   | ($ millions, except as otherwise indicated) |   |
| Sales                                                                                     |   | $                                           | 448    |   |   | $ | 326 |   |   | $ | 337 |   |   | $ | 178 |   |   |   | — |   |   | $ | 1,289 |   |
| Cost of Sales                                                                             |   |                                        | (279   | ) |   |   | (242 | ) |   |   | (265 | ) |   |   | (123 | ) |   |   | — |   |   |   | (909 | ) |
| Operating income                                                                          |   |                                        | 102    |   |   |   | 53 |   |   |   | 39 |   |   |   | (1 | ) |   |   | 10 |   |   |   | 203 |   |
| Operating margins                                                                         |   |                                        | 23     | % |   |   | 16 | % |   |   | 12 | % |   |   | — |   |   |   | — |   |   |   | 16 | % |
| Financing expenses, net                                                                   |   |                                        | (42    | ) |   |   | (23 | ) |   |   | (10 | ) |   |   | (29 | ) |   |   | — |   |   |   | (104 | ) |
| Net income (loss) for the period                                                          |   | $                                           | 31     |   |   | $ | 22 |   |   | $ | 23 |   |   | $ | (31 | ) |   | $ | 8 |   |   | $ | 52 |   |
|                                                                                           |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installed capacity of operating companies and associated companies at end of period (MW)  |   |                                        | 1,063  |   |   |   | 458 |   |   |   | 504 |   |   |   | 640 |   |   |   | — |   |   |   | 2,665 |   |
| Proportionate capacity of operating companies at end of period (MW)                       |   |                                        | 797    |   |   |   | 370 |   |   |   | 436 |   |   |   | 567 |   |   |   | — |   |   |   | 2,170 |   |
| Gross energy generated (GWh)                                                              |   |                                        | 5,166  |   |   |   | 3,837 |   |   |   | 2,208 |   |   |   | 1,898 |   |   |   | — |   |   |   | 13,109 |   |
| Energy sold under PPAs (GWh)                                                              |   |                                        | 6,327  |   |   |   | 3,976 |   |   |   | 2,450 |   |   |   | 995 |   |   |   | — |   |   |   | 13,748 |   |

----

| 1. | In addition to the results of certain of its generation assets, IC Power’s Other segment also includes expenses and other adjustments relating to its headquarters and intermediate holding companies. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                          |   | Year Ended December 31, 2014                |   |
|-----------------------------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                                                          |   | Peru                                        |   |   | Israel |   |   | CentralAmerica |   |   | Other1 |   |   | Adjustments |   |   | ConsolidatedResults |   |
|                                                                                          |   | ($ millions, except as otherwise indicated) |   |
| Sales                                                                                    |   | $                                           | 437    |   |   | $ | 413 |   |   | $ | 308 |   |   | $ | 214 |   |   |   | — |   |   | $ | 1,372 |   |
| Cost of Sales                                                                            |   |                                        | (270   | ) |   |   | (252 | ) |   |   | (260 | ) |   |   | (154 | ) |   |   | — |   |   |   | (936 | ) |
| Operating income                                                                         |   |                                        | 108    |   |   |   | 127 |   |   |   | 21 |   |   |   | 43 |   |   |   | 9 |   |   |   | 308 |   |
| Operating margins                                                                        |   |                                        | 25     | % |   |   | 31 | % |   |   | 7 | % |   |   | 20 | % |   |   | — |   |   |   | 22 | % |
| Financing expenses, net                                                                  |   |                                        | (34    | ) |   |   | (30 | ) |   |   | (8 | ) |   |   | (46 | ) |   |   | (1 | ) |   |   | (119 | ) |
| Net income for the period                                                                |   | $                                           | 45     |   |   | $ | 71 |   |   | $ | 9 |   |   | $ | 124 |   |   | $ | 7 |   |   | $ | 256 |   |
|                                                                                          |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Installed capacity of operating companies and associated companies at end ofperiod (MW)  |   |                                        | 1,063  |   |   |   | 440 |   |   |   | 504 |   |   |   | 635 |   |   |   | — |   |   |   | 2,642 |   |
| Proportionate capacity of operating companies at end of period (MW)                      |   |                                        | 797    |   |   |   | 352 |   |   |   | 395 |   |   |   | 564 |   |   |   | — |   |   |   | 2,108 |   |
| Gross energy generated (GWh)                                                             |   |                                        | 5,920  |   |   |   | 3,465 |   |   |   | 1,965 |   |   |   | 1,806 |   |   |   | — |   |   |   | 13,156 |   |
| Energy sold under PPAs (GWh)                                                             |   |                                        | 6,324  |   |   |   | 3,973 |   |   |   | 2,694 |   |   |   | 1,229 |   |   |   | — |   |   |   | 14,220 |   |

----

| 1. | In addition to the results of certain of its generation assets, IC Power’s Other segment also includes expenses and other adjustments relating to its headquarters and intermediate holding companies. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|  | · | limits on the ratio of debt to EBITDA; |
|--|--------|----------------------------------------|

|  | · | minimum required ratios of EBITDA to interest expense; |
|--|--------|--------------------------------------------------------|

|  | · | minimum equity; |
|--|--------|-----------------|

|  | · | limits on the incurrence of liens or the pledging of certain assets; |
|--|--------|----------------------------------------------------------------------|

|  | · | limits on the incurrence of subsidiary debt; |
|--|--------|----------------------------------------------|

|  | · | limits on the ability to enter into transactions with affiliates, including us; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | minimum liquidity and fixed charge cover ratios; |
|--|--------|--------------------------------------------------|

|  | · | limits on the ability to pay dividends to shareholders, including us; |
|--|--------|-----------------------------------------------------------------------|

|  | · | limits on our ability to sell assets, including interests in subsidiaries and associated companies; and |
|--|--------|---------------------------------------------------------------------------------------------------------|

|  | · | other non-financial covenants and limitations and various reporting obligations. |
|--|--------|----------------------------------------------------------------------------------|

----

|  | · | Transaction Risk—exists where sales or purchases are denominated in overseas currencies and the exchange rate changes after our entry into a purchase or sale commitment but prior to the completion of the underlying transaction itself; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Translation Risk—exists where the currency in which the results of a business are reported differs from the underlying currency in which the business’ operations are transacted; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Economic Risk—exists where the manufacturing cost base of a business is denominated in a currency different from the currency of the market into which the business’ products are sold; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Reinvestment Risk—exists where our ability to reinvest earnings from operations in one country to fund the capital needs of operations in other countries becomes limited. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | heightened economic volatility; |
|--|--------|---------------------------------|

|  | · | difficulty in enforcing agreements, collecting receivables and protecting assets; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | the possibility of encountering unfavorable circumstances from host country laws or regulations; |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | fluctuations in revenues, operating margins and/or other financial measures due to currency exchange rate fluctuations and restrictions on currency and earnings repatriation; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | unfavorable changes in regulated electricity tariffs; |
|--|--------|-------------------------------------------------------|

|  | · | trade protection measures, import or export restrictions, licensing requirements and local fire and security codes and standards; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | · | increased costs and risks of developing, staffing and simultaneously managing a number of foreign operations as a result of language and cultural differences; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | issues related to occupational safety, work hazard, and adherence to local labor laws and regulations; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | potentially adverse tax developments; |
|--|--------|---------------------------------------|

|  | · | changes in the general political, social and/or economic conditions in the countries where we operate, particularly in emerging markets; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the threat of nationalization and expropriation; |
|--|--------|--------------------------------------------------|

|  | · | the presence of corruption in certain countries; |
|--|--------|--------------------------------------------------|

|  | · | fluctuations in available municipal funding in those instances where a project is government-financed; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | terrorist activities; and |
|--|--------|---------------------------|

|  | · | cyber-attacks. |
|--|--------|----------------|

----

----

----

----

|  | · | heightened economic volatility; |
|--|--------|---------------------------------|

|  | · | difficulty in enforcing agreements, collecting receivables and protecting assets; |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | difficulty in obtaining authorizations, permits and licenses required for the operation of its assets; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | the possibility of encountering unfavorable circumstances from host country laws or regulations; |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | fluctuations in revenues, operating margins and/or other financial measures due to currency exchange rate fluctuations and restrictions on currency and earnings repatriation; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | trade protection measures, import or export restrictions, licensing requirements and environmental, local fire and security codes and standards; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | increased costs and risks of developing, staffing and simultaneously managing a number of foreign operations as a result of language and cultural differences; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | issues related to occupational safety, work hazard, and adherence to local labor laws and regulations; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | potentially adverse tax developments or interpretations; |
|--|--------|----------------------------------------------------------|

|  | · | changes in political, social and/or economic conditions; |
|--|--------|----------------------------------------------------------|

|  | · | the threat of nationalization and expropriation; |
|--|--------|--------------------------------------------------|

|  | · | the presence of corruption in certain countries; |
|--|--------|--------------------------------------------------|

|  | · | fluctuations in the availability of funding; |
|--|--------|----------------------------------------------|

|  | · | a potential deterioration in IC Power’s relationships with the different stakeholders in the communities surrounding its facilities; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | terrorist or other hostile activities; and |
|--|--------|--------------------------------------------|

|  | · | changes in the regulatory and environmental legal framework, including the costs of complying with environmental and energy regulations. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | high interest rates; |
|--|--------|----------------------|

|  | · | abrupt changes in currency values; |
|--|--------|------------------------------------|

|  | · | high levels of inflation; |
|--|--------|---------------------------|

|  | · | exchange controls; |
|--|--------|--------------------|

|  | · | wage and price controls and increased employment-related regulations; |
|--|--------|-----------------------------------------------------------------------|

|  | · | regulations on imports of equipment and other necessities (goods and services) relevant to operations; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | changes in governmental, economic or tax policies; |
|--|--------|----------------------------------------------------|

|  | · | social and political tensions, and |
|--|--------|------------------------------------|

|  | · | any of which could have a material adverse effect on its financial condition, results of operations or liquidity. |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | increasing IC Power’s vulnerability to general adverse economic and industry conditions; |
|--|--------|------------------------------------------------------------------------------------------------|

----

|  | · | limiting IC Power’s flexibility in planning for, or reacting to, changes in its business and the industry; |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | limiting IC Power’s ability to enter into long-term power sales or fuel purchases which require credit support; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------|

|  | · | limiting IC Power’s ability to adjust to changing market conditions and placing IC Power at a competitive disadvantage compared to its competitors that are not as highly leveraged; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | limiting IC Power’s ability to distribute dividends or other payments to its shareholders without leading to a downgrade of its outstanding indebtedness or long-term corporate ratings, if at all; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | limiting, along with the financial and other restrictive covenants relating to such indebtedness, among other things, IC Power’s ability to borrow additional funds for working capital including collateral postings, capital expenditures, acquisitions and general corporate or other purposes. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | IC Power’s financial condition, or the financial condition of its relevant subsidiaries, at the time of the proposed refinancing; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the amount of financing outstanding and lender requirements outstanding at the time of the proposed refinancing; |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | restrictions in any of IC Power’s credit agreements, indentures, or other outstanding indebtedness; and |
|--|--------|---------------------------------------------------------------------------------------------------------------|

|  | · | other factors, including the condition of the financial markets. |
|--|--------|------------------------------------------------------------------|

----

|  | · | acquired businesses may not perform as expected; |
|--|--------|--------------------------------------------------|

|  | · | IC Power may incur unforeseen obligations or liabilities, which may entail significant expense; |
|--|--------|-------------------------------------------------------------------------------------------------|

|  | · | the fuel supply needed to operate an acquired generation business at full capacity may not be available; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | acquired businesses may not generate sufficient cash flow to support the indebtedness existing at acquisition, the indebtedness incurred to acquire them or the capital expenditures needed to operate them; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the rate of return from acquired businesses may be lower than anticipated in IC Power’s decision to invest its capital to acquire them; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any benefits gained may not outweigh the management and personnel resources which will need to be diverted from IC Power’s operations to achieve those benefits; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | IC Power may not be able to expand as planned, manage the acquired company’s activities and achieve the economies of scale and any expected efficiency or other gains IC Power had planned, which often drive such acquisition decisions. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | During periods of drought, thermal plants are used more frequently. Operating costs of thermal plants can be considerably higher than those of hydroelectric plants. IC Power’s operating expenses may increase during these periods. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | IC Power’s thermal plants require water for cooling and a drought not only reduces the availability of water, but also increases the concentration of chemicals, such as sulfates in the water. The high concentration of chemicals in the water IC Power uses for cooling increases the risk of damaging the equipment at its thermal plants as well as the risk of violating relevant environmental regulations. As a result, IC Power may have to purchase water from areas that are also experiencing shortages of water. These water purchases may increase IC Power’s operating costs, as well as the costs relating to its social responsibility commitments. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Thermal power plants burning gas generate emissions such as sulfur dioxide (SO2) and nitrogen oxide (NOx) gases. When operating with diesel, they also release particulate matter into the atmosphere. Therefore, greater use of thermal plants during periods of drought increases the risk of unsatisfactory performance of the abatement equipment used to control pollutant emissions. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | During excessive rainfall periods, hydroelectric plants increase their generation, which reduces the spot prices in the system, and also reduces the dispatch of thermal power plants. As a result, IC Power’s thermal plants selling energy to the spot market may face a reduction in their margins due to their lower dispatch or due to sales occurring at the lower spot prices. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|  | • | operation and maintenance of generation, transmission or distribution facilities, including the receipt of provisional and/or permanent operational licenses; |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | • | the regulatory and environmental legal framework, including the costs of complying with environmental and energy regulations; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------------|

|  | • | other political, social and economic developments in or affecting the countries in which its operating companies are based. |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | · | unanticipated cost overruns; |
|--|--------|------------------------------|

|  | · | claims from contractors; |
|--|--------|--------------------------|

|  | · | an inability to obtain financing at affordable rates or at all; |
|--|--------|-----------------------------------------------------------------|

|  | · | delays in obtaining necessary permits and licenses, including environmental permits; |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | design, engineering, equipment manufacturing, environmental and geological problems and defects; |
|--|--------|--------------------------------------------------------------------------------------------------|

|  | · | adverse changes in the political and regulatory environment in the country in which the project is located; |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | opposition by political, environmental and other local groups; |
|--|--------|----------------------------------------------------------------|

|  | · | shortages or increases in the price of equipment, materials or labor; |
|--|--------|-----------------------------------------------------------------------|

|  | · | work stoppages or other labor disputes; |
|--|--------|-----------------------------------------|

|  | · | adverse weather conditions, natural disasters, accidents or other unforeseen events; and |
|--|--------|------------------------------------------------------------------------------------------|

----

|  | · | an inability to perform under PPAs as a result of any delays in the plants becoming operational or material defects to the plants after reaching COD. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | · | levels of exploration, drilling, reserves and production of natural gas in the Camisea fields and other areas in Peru and the price of such natural gas; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | accessibility of the Camisea fields and other gas production areas in Peru, which may be affected by weather, natural disasters, geographic and geological conditions, environmental restrictions and regulations, activities of terrorist group or other impediments to access; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the availability, price and quality of natural gas from alternative sources; |
|--|--------|------------------------------------------------------------------------------|

|  | · | market conditions for the renewal of such agreements before their expiration and IC Power’s ability to renew such agreements and the terms of any renewal; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the regulatory environment in Peru. |
|--|--------|-------------------------------------|

----

----

----

----

----

|  | · | the continued development of the Qoros brand; |
|--|--------|-----------------------------------------------|

|  | · | customer acceptance of new models, including the Qoros 5 SUV and Qoros 3 GT, which both launched in 2016; |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | successful development and launch of new vehicle models; |
|--|--------|----------------------------------------------------------|

|  | · | expansion of its dealer network; |
|--|--------|----------------------------------|

|  | · | build-up of its aftersales and services infrastructure; |
|--|--------|---------------------------------------------------------|

|  | · | achieving material cost reductions; |
|--|--------|-------------------------------------|

|  | · | managing its procurement, manufacturing and supply processes; |
|--|--------|---------------------------------------------------------------|

|  | · | establishing effective, and continuing to improve, customer service processes; and |
|--|--------|------------------------------------------------------------------------------------|

|  | · | securing additional financing to support its operating and capital expenses and further its growth and development. |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

----

|  | · | global and regional economic and geopolitical trends, including armed conflicts, terrorist activities, embargoes and strikes; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

|  | · | the supply of and demand for commodities and industrial products globally and in certain key markets, such as China; |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | · | developments in international trade, including trade protectionism; |
|--|--------|---------------------------------------------------------------------|

|  | · | currency exchange rates; |
|--|--------|--------------------------|

----

|  | · | prices of energy resources; |
|--|--------|-----------------------------|

|  | · | environmental and other regulatory developments; |
|--|--------|--------------------------------------------------|

|  | · | changes in seaborne and other transportation patterns; |
|--|--------|--------------------------------------------------------|

|  | · | changes in the shipping industry, including mergers and acquisitions, restructurings and alliances; |
|--|--------|-----------------------------------------------------------------------------------------------------|

|  | · | changes in the infrastructure and capabilities of ports and terminals; and |
|--|--------|----------------------------------------------------------------------------|

|  | · | weather conditions. |
|--|--------|---------------------|

----

|  | · | Minimum liquidity, fixed charge coverage ratio and total leverage covenants; and |
|--|--------|----------------------------------------------------------------------------------|

|  | · | Other non-financial covenants and limitations such as restrictions on dividend distribution, asset sales, investments and incurrence of debt, as well as various reporting obligations. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|  | · | commence projects on the current, or any revised, schedule in compliance with the budget; |
|--|--------|-------------------------------------------------------------------------------------------|

|  | · | secure necessary capital; |
|--|--------|---------------------------|

|  | · | successfully negotiate with government agencies, vendors, customers, feedstock suppliers or other third parties; |
|--|--------|------------------------------------------------------------------------------------------------------------------|

|  | · | effectively manage rapid growth in personnel or operations; |
|--|--------|-------------------------------------------------------------|

|  | · | successfully manage its existing, or enter into new, strategic relationships and partnerships; |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | recruit and retain key personnel; |
|--|--------|-----------------------------------|

|  | · | adequately protect its intellectual property; and |
|--|--------|---------------------------------------------------|

|  | · | develop technology, products or processes that complement existing business strategies or address changing market conditions. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|  | · | a 100% interest in IC Power, a leading owner, developer and operator of power generation and distribution facilities located in key energy markets in Latin America, the Caribbean and Israel; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a 50% interest in Qoros, a China-based automotive company; |
|--|--------|------------------------------------------------------------|

|  | · | a 32% interest in ZIM, a large provider of global container shipping services; and |
|--|--------|------------------------------------------------------------------------------------|

|  | · | a 91% interest in Primus, an innovative developer and owner of a proprietary natural gas-to-liquids technology process. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

----

|  | · | ZIM—A large provider of global container shipping services, which, as of December 31, 2016 operated 72 (owned and chartered) vessels with a total container capacity of 322,566 TEUs, and in which we have a 32% equity interest; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Primus, an innovative developer and owner of a proprietary natural gas-to-liquid technology process, in which we have a 91% equity interest. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Segment            |   | Country              |   | Entity     |   | OwnershipPercentage (Rounded) |   | Fuel                       |   | InstalledCapacity(MW)1 |   | ProportionateCapacity2           |   | Type of Asset |   | WeightedAverageRemainingLifeof Significant PPAsBased onFirmCapacity (Years) |   | LTMEnergySalesUnder PPAs(GWh)3 |
|--------------------|--------|----------------------|--------|------------|--------|-------------------------------|--------|----------------------------|--------|------------------------|--------|----------------------------------|--------|-------------------------|--------|---------------------------------------------------------------------------------------|--------|--------------------------------|
| Peru               |   | Peru                 |   | Kallpa     |   | 75%                           |   | Natural Gas                |   | 1,063                  |   | 797                              |   | Greenfield              |   | 7                                                                                     |   | 6,182                          |
|               |   | Peru                 |   | Samay I    |   | 75%                           |   | Diesel and Natural Gas     |   | 632                    |   | 473                              |   | Greenfield              |   | 19                                                                                    |   | —                        |
|               |   | Peru                 |   | CDA        |   | 75%                           |   | Hydroelectric              |   | 545                    |   | 409                              |   | Greenfield              |   | 12                                                                                    |   | 509                            |
|               |   |                 |   |       |   |                          |   |                       |   |                   |   |                             |   |                    |   |                                                                                  |   |                           |
| Israel             |   | Israel               |   | OPC-Rotem  |   | 80%                           |   | Natural Gas and Diesel     |   | 440                    |   | 352                              |   | Greenfield              |   | 64                                                                                    |   | 3,908                     |
|               |   |                 |   |       |   |                          |   |                       |   |                   |   |                             |   |                    |   |                                                                                  |   |                           |
|               |   | Israel               |   | OPC-Hadera |   | 100%                          |   | Natural Gas                |   | 18                     |   | 18                               |   | Acquired                |   | 9                                                                                     |   | 88                             |
|               |   |                 |   |       |   |                          |   |                       |   |                   |   |                             |   |                    |   |                                                                                  |   |                           |
| CentralAmerica     |   | Nicaragua            |   | Corinto    |   | 65%                           |   | HFO                        |   | 71                     |   | 46                               |   | Acquired                |   | 2                                                                                     |   | 356                            |
| Nicaragua          |   | Tipitapa  Power |   | 65%        |   | HFO                           |   | 51                         |   | 33                     |   | Acquired                         |   | 2                       |   | 364                                                                                   |
| Nicaragua          |   | Amayo I              |   | 61%        |   | Wind                          |   | 40                         |   | 24                     |   | Acquired                         |   | 8                       |   | 142                                                                                   |
| Nicaragua          |   | Amayo II             |   | 61%        |   | Wind                          |   | 23                         |   | 14                     |   | Acquired                         |   | 8                       |   | 95                                                                                    |
| Guatemala          |   | Puerto Quetzal       |   | 100%       |   | HFO                           |   | 179                        |   | 179                    |   | Acquired                         |   | —                 |   | 528                                                                                   |
| El Salvador   |   | Nejapa               |   | 100%       |   | HFO                           |   | 140                        |   | 140                    |   | Original Inkia Asset             |   | 1                       |   | 807                                                                                   |
| Panama        |   | Kanan                |   | 100%       |   | HFO                           |   | 92                         |   | 92                     |   | Greenfield                       |   | 4                       |   | 523                                                                                   |
|               |   |                 |   |       |   |                          |   |                       |   |                   |   |                             |   |                    |   | ]                                                                                     |   |                           |
| Other              |   | Bolivia              |   | COBEE      |   | 100%                          |   | Hydroelectric, Natural Gas |   | 228                    |   | 228                              |   | Original Inkia Asset    |   | 1                                                                                     |   | 275                            |
| Chile              |   | Central Cardones     |   | 87%        |   | Diesel                   |   | 153                        |   | 133                    |   | Acquired                         |   | —                 |   | —                                                                               |
| Chile              |   | Colmito              |   | 100%       |   | Natural Gas and Diesel        |   | 58                         |   | 58                     |   | Acquired                         |   | 1                       |   | 254                                                                                   |
| Dominican Republic |   | CEPP                 |   | 97%        |   | HFO                           |   | 67                         |   | 65                     |   | Original Inkia  Asset  |   | 3                       |   | 88                                                                                    |
| Jamaica            |   | JPPC                 |   | 100%       |   | HFO                           |   | 60                         |   | 60                     |   | Original Inkia Asset             |   | 1                       |   | 390                                                                                   |
| Colombia           |   | Surpetroil           |   | 60%        |   | Natural Gas                   |   | 31                         |   | 19                     |   | Acquired / Greenfield / Acquired |   | 1                       |   | 73                                                                                    |
| Panama             |   | Pedregal5            |   | 21%        |   | HFO                           |   | 54                         |   | 11                     |   | Original Inkia Asset             |   | 1                       |   | 289                                                                                   |

|                                          Total Operating Capacity | 3,945 |   | 3,152 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|--------|-------|--------|

| 1. | Reflects 100% of the capacity of each of IC Power’s assets, regardless of ownership interest in the entity that owns each such asset. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Reflects the proportionate capacity of each of IC Power’s assets, as determined by IC Power’s ownership interest in the entity that owns each such asset. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Reflects energy sales under PPAs for the year ended December 31, 2016. |
|----|------------------------------------------------------------------------|

| 4. | Reflects the weighted average remaining life of OPC-Rotem’s PPAs with end users based on OPC-Rotem’s firm capacity. The IEC PPA (as defined below), which extends for an 18-year term and covers OPC-Rotem’s entire firm capacity, provides OPC-Rotem with the option to allocate and sell the generated electricity of the power station directly to end users. OPC-Rotem has exercised this option and sells all of its energy and capacity directly to 28 end users, as of December 31, 2016. For further information on the IEC PPA, see “—Regulatory, Environmental and Compliance Matters—Regulation of the Israeli Electricity Sector.” |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Although Pedregal is located in Central America, it is a minority investment. Therefore, from an income statement perspective, it is not part of the Central America segment and Pedregal is only reflected in IC Power’s share in income of associate. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| Installed Capacity by Generation Technology | Installed Capacity by Fuel Source |
|---------------------------------------------|-----------------------------------|
|                                        |                              |

----

----

|                         |   | Energy Sales |   |
|------------------------------|--------|--------------|--------|
|                         |   | Under PPAs   |   |
| Year Ended December 31, |   | Distribution |   |   | Non-regulated |   |
|                         |   | (GWh)        |   |
| 2012                    |   |         | 18,961 |   |   |   | 14,661 |   |
| 2013                    |   |         | 19,880 |   |   |   | 15,841 |   |
| 2014                    |   |         | 20,663 |   |   |   | 16,465 |   |
| 2015                    |   |         | 21,988 |   |   |   | 17,521 |   |
| 2016                    |   |         | 23,924 |   |   |   | 19,064 |   |

----

|                                                            |   | Capacity as of December 31, 2016 |    |
|-----------------------------------------------------------------|--------|----------------------------------|---------|
|                                                            |   | Hydro                            |    |   | CombinedCycle-Natural Gas |   |   | Open-CycleNatural Gas |   |   | Dual Fuel |   |   | HFO |   |   | Coal |   |   | Other |   |   | Total |   |   | Percentageof Installed Capacity |   |
|                                                            |   | (MW)                             |    |   | (%) |   |
| Engie Energía Perú S.A. (formerly EnerSur S.A.)  |   |                             | 254     |   |   |   | 920 |   |   |   | — |   |   |   | — |   |   |   | 1,214 |   |   |   | 142 |   |   |   | — |   |   |   | 2,530 |   |   |   | 21 |   |
| Edegel1                                                    |   |                             | 787     |   |   |   | 479 |   |   |   | 292 |   |   |   | 230 |   |   |   | 189 |   |   |   | — |   |   |   | — |   |   |   | 1,977 |   |   |   | 16 |   |
| Kallpa                                                     |   |                             | — |   |   |   | 870 |   |   |   | 193 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 1,063 |   |   |   | 9 |   |
| CDA2                                                       |   |                             | 545     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 545 |   |   |   | 5 |   |
| Samay I                                                    |   |                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 632 |   |   |   | — |   |   |   | — |   |   |   | 632 |   |   |   | 5 |   |
| Electroperú                                           |   |                             | 898     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 16 |   |   |   | — |   |   |   | — |   |   |   | 914 |   |   |   | 8 |   |
| Other generation companies                                 |   |                             | 2,205   |   |   |   | 565 |   |   |   | 530 |   |   |   | — |   |   |   | 574 |   |   |   | — |   |   |   | 575 |   |   |   | 4,449 |   |   |   | 36 |   |
|                                                            |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                      |   |                             | 4,689   |   |   |   | 2,834 |   |   |   | 1,015 |   |   |   | 230 |   |   |   | 2,624 |   |   |   | 142 |   |   |   | 575 |   |   |   | 12,110 |   |   |   | 100 |   |

----

|                  |   | Regulated “Generation Component” Tariff |   |
|-----------------------|--------|-----------------------------------------------------|--------|
|                  |   | Winter                                              |   |   | Transition |   |   | Summer |   |
|                  |   | (NIS per MWh)                                       |   |
| Peak             |   |                                                | 663    |   |   |   | 276 |   |   |   | 696 |   |
| Shoulder         |   |                                                | 380    |   |   |   | 214 |   |   |   | 267 |   |
| Off-Peak         |   |                                                | 196    |   |   |   | 168 |   |   |   | 165 |   |
| Weighted tariff  |   |                                                |   |   |   |   | 264 |   |   |   |   |   |

|           |   | Hours per Consumption Block1 |   |
|----------------|--------|------------------------------|--------|
|           |   | Winter                       |   |   | Transition |   |   | Summer |   |
|           |   | (Hours)                      |   |
| Peak      |   |                         | 410    |   |   |   | 1,932 |   |   |   | 315 |   |
| Shoulder  |   |                         | 206    |   |   |   | 946 |   |   |   | 315 |   |
| Off-Peak  |   |                         | 1,544  |   |   |   | 2,234 |   |   |   | 858 |   |

| 1. | The hours per consumption block may vary due to changes in the dates of weekdays, weekends and public holidays. |
|----|-----------------------------------------------------------------------------------------------------------------|

| Energy Sales                 |   |
|------------------------------|--------|
| Year Ended December 31, |   | Distribution |   |
|                         |   | (GWh) |   |
| 2011                    |   |   | 53,100 |   |
| 2012                    |   |   | 57,900 |   |
| 2013                    |   |   | 56,900 |   |
| 2014                    |   |   | 58,296 |   |
| 2015                    |   |   | 60,376 |   |

----

|                         |   | Capacity Sales |   |   | Energy Sales |   |
|------------------------------|--------|----------------|--------|--------|--------------|--------|
| Year Ended December 31, |   | Under PPAs     |   |   | Spot Market  |   |   | Under PPAs |   |   | Spot Market |   |
|                         |   | (MW)           |   |   | (GWh)        |   |
| 2012                    |   |           | 728    |   |         |   | 72 |   |   |   | 3,536 |   |   |   | 91 |   |
| 2013                    |   |           | 740    |   |         |   | 72 |   |   |   | 3,695 |   |   |   | 133 |   |
| 2014                    |   |           | 749    |   |         |   | 72 |   |   |   | 3,933 |   |   |   | 140 |   |
| 2015                    |   |           | 736    |   |         |   | 79 |   |   |   | 4,051 |   |   |   | 185 |   |
| 2016                    |   |           | 742    |   |         |   | 115 |   |   |   | 4,202 |   |   |   | 213 |   |

|                         |   | Capacity Sales |   |   | Energy Sales |   |
|------------------------------|--------|----------------|--------|--------|--------------|--------|
| Year Ended December 31, |   | Under PPAs     |   |   | Under PPAs   |   |   | Spot Market |   |
|                         |   | (MW)           |   |   | (GWh)        |   |
| 2012                    |   |           | 1,533  |   |         |   | 7,500 |   |   |   | 1,056 |   |
| 2013                    |   |           | 1,564  |   |         |   | 7,394 |   |   |   | 1,785 |   |
| 2014                    |   |           | 1,635  |   |         |   | 8,223 |   |   |   | 1,899 |   |
| 2015                    |   |           | 1,672  |   |         |   | 8,984 |   |   |   | 1,502 |   |
| 2016                    |   |           | 1,702  |   |         |   | 10,624 |   |   |   | 790 |   |

|                                   |   | Capacity Sales |   |   | Energy Sales |   |
|----------------------------------------|--------|----------------|--------|--------|--------------|--------|
| Year Ended December 31, |   | Under PPAs     |   |   | Spot Market  |   |   | Under PPAs |   |   | Spot Market |   |
|                                   |   | (MW)           |   |   | (GWh)        |   |
| 2012                              |   |           | 655    |   |         |   | 332 |   |   |   | 3,122 |   |   |   | 2,761 |   |
| 2013                              |   |           | 715    |   |         |   | 285 |   |   |   | 3,823 |   |   |   | 2,177 |   |
| 2014                              |   |           | 764    |   |         |   | 271 |   |   |   | 4,176 |   |   |   | 1,891 |   |
| 2015                              |   |           | 515    |   |         |   | 581 |   |   |   | 3,828 |   |   |   | 2,482 |   |
| 2016                              |   |           | 687    |   |         |   | 398 |   |   |   | 2,946 |   |   |   | 3,405 |   |

----

|                         |   | Energy Sales |   |
|------------------------------|--------|--------------|--------|
| Year Ended December 31, |   | Under PPAs   |   |   | Spot Market |   |
|                         |   | (GWh)        |   |
| 2012                    |   |         | 7,217  |   |   |   | 1,884 |   |
| 2013                    |   |         | 7,359  |   |   |   | 2,615 |   |
| 2014                    |   |         | 7,542  |   |   |   | 3,193 |   |
| 2015                    |   |         | 8,858  |   |   |   | 2,656 |   |
| 2016                    |   |         | 10,034 |   |   |   | 2,828 |   |

|                         |   | Capacity Sales |   |   | Energy Sales  |   |
|------------------------------|--------|----------------|--------|--------|---------------|--------|
|                         |   | Under PPAs     |   |   | Spot Market   |   |   | Under PPAs |   |   | Spot Market |   |
| Year Ended December 31, |   | Non-regulated  |   |   | Non-regulated |   |
|                         |   | (MW)           |   |   | (GWh)         |   |
| 2012                    |   |           | 43     |   |          |   | 1,060 |   |   |   | 369 |   |   |   | 6,236 |   |
| 2013                    |   |           | 47     |   |          |   | 1,119 |   |   |   | 368 |   |   |   | 6,645 |   |
| 2014                    |   |           | 44     |   |          |   | 1,254 |   |   |   | 357 |   |   |   | 7,121 |   |
| 2015                    |   |           | 47     |   |          |   | 1,317 |   |   |   | 360 |   |   |   | 7,583 |   |
| 2016                    |   |           | 42     |   |          |   | 1,391 |   |   |   | 367 |   |   |   | 8,011 |   |

----

|                         |   | Capacity Sales      |   |   | Energy Sales            |   |
|------------------------------|--------|---------------------|--------|--------|-------------------------|--------|
| Year Ended December 31, |   | Regulated customers |   |   | Non regulated customers |   |   | Regulated customers |   |   | Non regulated customers |   |
|                         |   | (MW)                |   |   | (GWh)                   |   |
| 2012                    |   |                | 4,422  |   |                    |   | 1,967 |   |   |   | 32,031 |   |   |   | 14,251 |   |
| 2013                    |   |                | 4,765  |   |                    |   | 2,029 |   |   |   | 33,511 |   |   |   | 14,266 |   |
| 2014                    |   |                | 4,923  |   |                    |   | 2,157 |   |   |   | 34,057 |   |   |   | 14,920 |   |
| 2015                    |   |                | 4,935  |   |                    |   | 2,172 |   |   |   | 34,410 |   |   |   | 15,142 |   |
| 2016                    |   |                | 5,313  |   |                    |   | 2,443 |   |   |   | 34,564 |   |   |   | 15,893 |   |

|                         |   | Capacity Sales |   |   | Energy Sales        |   |
|------------------------------|--------|----------------|--------|--------|---------------------|--------|
|                         |   | Under PPAs     |   |   | SpotMarket          |   |   | Under PPAs |   |   | SpotMarket |   |
| Year Ended December 31, |   | Distribution   |   |   | Other Non-regulated |   |   |   |   |   | Distribution |   |   | Other Non-regulated |   |   |   |   |
|                         |   | (MW)           |   |   | (GWh)               |   |
| 2012                    |   |           | 1,429  |   |                |   | 238 |   |   |   | 634 |   |   |   | 11,084 |   |   |   | 1,792 |   |   |   | 2,657 |   |
| 2013                    |   |           | 1,676  |   |                |   | 212 |   |   |   | 569 |   |   |   | 10,929 |   |   |   | 2,164 |   |   |   | 3,114 |   |
| 2014                    |   |           | 1,453  |   |                |   | 163 |   |   |   | 822 |   |   |   | 10,045 |   |   |   | 1,389 |   |   |   | 4,109 |   |
| 2015                    |   |           | 1,110  |   |                |   | 183 |   |   |   | 1,010 |   |   |   | 9,411 |   |   |   | 1,557 |   |   |   | 4,268 |   |
| 2016                    |   |           | 881    |   |                |   | 184 |   |   |   | 1,258 |   |   |   | 9,166 |   |   |   | 1,623 |   |   |   | 5,359 |   |

----

|                         |   | Capacity Sales |   |   | Energy Sales |   |
|------------------------------|--------|----------------|--------|--------|--------------|--------|
| Year Ended December 31, |   | Under PPAs     |   |   | Under PPAs   |   |
|                         |   | (MW)           |   |   | (GWh)        |   |
| 2012                    |   |           | 854    |   |         |   | 4,135 |   |
| 2013                    |   |           | 854    |   |         |   | 4,142 |   |
| 2014                    |   |           | 938    |   |         |   | 4,107 |   |
| 2015                    |   |           | 935    |   |         |   | 4,209 |   |
| 2016                    |   |           | 1,017  |   |         |   | 4,344 |   |

|                         |   | Energy Sales |   |   | Energy Consumption |   |
|------------------------------|--------|--------------|--------|--------|--------------------|--------|
| Year Ended December 31, |   | Under PPAs   |   |   | Spot Market        |   |   | Regulated |   |   | Non-regulated |   |
|                         |   | (GWh)        |   |   | (GWh)              |   |
| 2012                    |   |         | 67,183 |   |               |   | 17,016 |   |   |   | 39,175 |   |   |   | 19,800 |   |
| 2013                    |   |         | 71,375 |   |               |   | 14,948 |   |   |   | 40,282 |   |   |   | 20,237 |   |
| 2014                    |   |         | 69,846 |   |               |   | 15,544 |   |   |   | 42,323 |   |   |   | 20,867 |   |
| 2015                    |   |         | 71,549 |   |               |   | 16,905 |   |   |   | 44,629 |   |   |   | 21,187 |   |
| 2016                    |   |         | 65,669 |   |               |   | 20,143 |   |   |   | 45,029 |   |   |   | 20,806 |   |

----

----

| Installed Capacity by Energy Source(December 31, 2016)1  |
|---------------------------------------------------------------|
|                                                               |
| 3,945 MW2                                                     |

----

| 1. | IC Power’s dual-fueled assets, COBEE, OPC-Rotem, Samay I and Colmito, are categorized as hydroelectric, natural gas, diesel and natural gas, respectively. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Does not include the 140 MW cogeneration power station which OPC-Hadera began constructing in June 2016 as a greenfield project. COD is expected by early 2019. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Installed Capacity by Segment(December 31, 2016)  |
|-----------------------------------------------------------------------|
|                                                                  |
| 3,945 MW1                                                             |

----

| 1. | Does not include the 140 MW cogeneration power station which OPC-Hadera began constructing in June 2016 as a greenfield project. COD is expected by early 2019. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | Year Ended December 31, 2016 |   |
|----------------------------------------|--------|------------------------------|--------|
| Entity                                 |   | OwnershipInterest (%)        |   |   | Sales |   |   | Cost of Sales |   |   | Net Income /(Loss) |   |   | Adjusted EBITDA |   |   | Outstanding Debt2 |   |   | Net Debt3 |   |
|                                   |   | ($ millions)                 |   |
| GENERATION                             |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Peru segment                           |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa                            |   |                         | 75     |   |   | $ | 438 |   |   | $ | 293 |   |   | $ | 32 |   |   | $ | 139 |   |   | $ | 414 |   |   | $ | 393 |   |
| CDA                               |   |                         | 75     |   |   |   | 50 |   |   |   | 14 |   |   |   | — |   |   |   | 31 |   |   |   | 593 |   |   |   | 556 |   |
| Samay I                           |   |                         | 75     |   |   |   | 40 |   |   |   | 16 |   |   |   | 1 |   |   |   | 19 |   |   |   | 339 |   |   |   | 321 |   |
| Israel segment                         |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPC-Rotem                         |   |                         | 80     |   |   |   | 311 |   |   |   | 239 |   |   |   | 24 |   |   |   | 65 |   |   |   | 365 |   |   |   | 328 |   |
| OPC-Hadera                        |   |                         | 100    |   |   |   | 45 |   |   |   | 43 |   |   |   | — |   |   |   | 2 |   |   |   | — |   |   |   | (1 | ) |
| Central America segment                |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ICPNH4                                 |   |                         | 61-65  |   |   |   | 90 |   |   |   | 59 |   |   |   | 8 |   |   |   | 28 |   |   |   | 88 |   |   |   | 79 |   |
| Puerto Quetzal                    |   |                         | 100    |   |   |   | 55 |   |   |   | 52 |   |   |   | (2 | ) |   |   | 5 |   |   |   | 18 |   |   |   | 13 |   |
| Nejapa                            |   |                         | 100    |   |   |   | 83 |   |   |   | 67 |   |   |   | 6 |   |   |   | 12 |   |   |   | 4 |   |   |   | 3 |   |
| Cenérgica                    |   |                         | 100    |   |   |   | 24 |   |   |   | 15 |   |   |   | 3 |   |   |   | 4 |   |   |   | — |   |   |   | (1 | ) |
| Kanan                             |   |                         | 100    |   |   |   | 67 |   |   |   | 55 |   |   |   | (8 | ) |   |   | 11 |   |   |   | 46 |   |   |   | 44 |   |
| Guatemel                          |   |                         | 100    |   |   |   | 7 |   |   |   | 4 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (1 | ) |
| Other segment                          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COBEE                             |   |                         | 100    |   |   |   | 40 |   |   |   | 14 |   |   |   | 9 |   |   |   | 20 |   |   |   | 88 |   |   |   | 51 |   |
| Central Cardones                  |   |                         | 87     |   |   |   | 13 |   |   |   | 1 |   |   |   | 2 |   |   |   | 9 |   |   |   | 35 |   |   |   | 32 |   |
| Colmito                           |   |                         | 100    |   |   |   | 21 |   |   |   | 17 |   |   |   | — |   |   |   | 3 |   |   |   | 17 |   |   |   | 16 |   |
| CEPP                              |   |                         | 97     |   |   |   | 29 |   |   |   | 24 |   |   |   | — |   |   |   | 3 |   |   |   | 11 |   |   |   | 9 |   |
| JPPC                              |   |                         | 100    |   |   |   | 42 |   |   |   | 35 |   |   |   | (1 | ) |   |   | 4 |   |   |   | 1 |   |   |   | (2 | ) |
| Surpetroil                        |   |                         | 60     |   |   |   | 8 |   |   |   | 8 |   |   |   | (1 | ) |   |   | — |   |   |   | 2 |   |   |   | 1 |   |
| Recsa                             |   |                         | 100    |   |   |   | 1 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 5 |   |   |   | 3 |   |
| Holdings5                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| IC Power Distribution Holdings    |   |                         | 100    |   |   |   | — |   |   |   | — |   |   |   | (8 | ) |   |   | — |   |   |   | 119 |   |   |   | 119 |   |
| Inkia & Other6           |   |                         | 100    |   |   |   | 1 |   |   |   | — |   |   |   | (48 | ) |   |   | (5 | ) |   |   | 448 |   |   |   | 394 |   |
| IC Power, ICPI & Other7  |   |                         | 100    |   |   |   | — |   |   |   | — |   |   |   | (31 | ) |   |   | (12 | ) |   |   | 162 |   |   |   | 106 |   |
| DISTRIBUTION                           |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| DEORSA                            |   |                         | 93     |   |   |   | 225 |   |   |   | 177 |   |   |   | 19 |   |   |   | 36 |   |   |   | 125 |   |   |   | 118 |   |
| DEOCSA                            |   |                         | 91     |   |   |   | 284 |   |   |   | 226 |   |   |   | 16 |   |   |   | 46 |   |   |   | 192 |   |   |   | 183 |   |
| TOTAL                                  |   |                         |   |   |   | $ | 1,874 |   |   | $ | 1,359 |   |   | $ | 21 |   |   | $ | 420 |   |   | $ | 3,072 |   |   | $ | 2,764 |   |

| 1. | “Adjusted EBITDA” for each entity for the period is defined as net income (loss) before depreciation and amortization, finance expenses, net and income tax expense (benefit), excluding share in income of associate. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | Kallpa       |   |   | CDA    |   |    | Samay I |   |   | OPC-Rotem |   |   | OPC-Hadera |    |   | ICPNH  |   |    | PuertoQuetzal |   |
|-------------------------------------|--------|--------------|--------|--------|--------|--------|---------|---------|--------|--------|-----------|--------|--------|------------|---------|--------|--------|--------|---------|---------------|--------|
|                                |   | ($ millions) |   |
| Net income (loss)              |   | $            | 32     |   |   | $      | — |    |   | $      | 1         |   |   | $          | 24      |   |   | $      | — |          |   | $ | 8 |   |   | $ | (2 | ) |
| Depreciation and amortization  |   |         | 45     |   |   |   | 7       |    |   |   | 8         |   |   |       | 25      |   |   |   | 2       |          |   |   | 11 |   |   |   | 3 |   |
| Finance expenses, net          |   |         | 37     |   |   |   | 17      |    |   |   | 9         |   |   |       | 16      |   |   |   | — |          |   |   | 8 |   |   |   | 2 |   |
| Income tax expense (benefit)   |   |         | 25     |   |   |   | 7       |    |   |   | 1         |   |   |       | — |   |   |   | — |          |   |   | 1 |   |   |   | 2 |   |
|                                |   |         |   |   |   |   |    |    |   |   |      |   |   |       |    |   |   |   |    |          |   |   |   |   |   |   |   |   |
| Adjusted EBITDA                |   | $            | 139    |   |   | $      | 31      |    |   | $      | 19        |   |   | $          | 65      |   |   | $      | 2       |          |   | $ | 28 |   |   | $ | 5 |   |

|                                |   | Nejapa       |    |   | Cenérgica |   |    | Kanan  |   |   | Guatemel |   |   | COBEE  |    |   | CentralCardones |   |   | Colmito |   |
|-------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------|--------|--------|----------|--------|--------|--------|---------|--------|-----------------|--------|--------|---------|--------|
|                                |   | ($ millions) |    |
| Net income (loss)              |   | $            | 6       |   |           | $      | 3       |   |   | $      | (8       | )      |   | $      | — |   |            | $      | 9      |    |   | $ | 2 |   |   | $ | — |   |
| Depreciation and amortization  |   |         | 3       |   |           |   | — |   |   |   | 18       |   |   |   | — |   |            |   | 4      |    |   |   | 5 |   |   |   | 1 |   |
| Finance expenses, net          |   |         | — |   |           |   | — |   |   |   | 2        |   |   |   | — |   |            |   | 4      |    |   |   | 1 |   |   |   | 2 |   |
| Income tax expense             |   |         | 3       |   |           |   | 1       |   |   |   | (1       | )      |   |   | — |   |            |   | 3      |    |   |   | 1 |   |   |   | — |   |
| Adjusted EBITDA                |   | $            | 12      |   |           | $      | 4       |   |   | $      | 11       |   |   | $      | — |   |            | $      | 20     |    |   | $ | 9 |   |   | $ | 3 |   |

|                                |   | CEPP         |    |   | JPPC   |   |    | Surpetroil |   |   | RECSA   |   |   | IC PowerDistributionHoldings |    |   | Inkia &Other |   |    | IC Power, ICPI& Other |   |
|-------------------------------------|--------|--------------|---------|--------|--------|--------|---------|------------|--------|--------|---------|--------|--------|------------------------------|---------|--------|------------------|--------|---------|---------------------------|--------|
|                                |   | ($ millions) |    |
| Net income (loss)              |   | $            | — |   |   | $      | (1      | )          |   | $      | (1      | )      |   | $                            | — |   |             | $      | (8      | )                         |   | $ | (48 | ) |   | $ | (31 | ) |
| Depreciation and amortization  |   |         | 3       |   |   |   | 4       |       |   |   | 1       |   |   |                         | — |   |             |   | — |                      |   |   | 13 |   |   |   | — |   |
| Finance expenses, net          |   |         | — |   |   |   | 1       |       |   |   | — |   |   |                         | — |   |             |   | 8       |                      |   |   | 30 |   |   |   | 19 |   |
| Share in income of associate   |   |         | — |   |   |   | — |       |   |   | — |   |   |                         | — |   |             |   | — |                      |   |   | (1 | ) |   |   | — |   |
| Income tax expense (benefit)   |   |         | — |   |   |   | — |       |   |   | — |   |   |                         | — |   |             |   | — |                      |   |   | 1 |   |   |   | — |   |
| Adjusted EBITDA                |   | $            | 3       |   |   | $      | 4       |       |   | $      | — |   |   | $                            | — |   |             | $      | — |                      |   | $ | (5 | ) |   | $ | (12 | ) |

|                                |   | DEOCSA       |    |   | DEORSA |   |    | IC PowerTotal |   |
|-------------------------------------|--------|--------------|---------|--------|--------|--------|---------|---------------|--------|
|                                |   | ($ millions) |    |
| Net income (loss)              |   | $            | 19      |   |   | $      | 16      |          |   | $ | 21 |   |
| Depreciation and amortization  |   |         | 11      |   |   |   | 8       |          |   |   | 172 |   |
| Finance expenses, net          |   |         | 9       |   |   |   | 6       |          |   |   | 171 |   |
| Share in income of associate   |   |         | — |   |   |   | — |          |   |   | (1 | ) |
| Income tax expense             |   |         | 7       |   |   |   | 6       |          |   |   | 57 |   |
| Adjusted EBITDA                |   | $            | 46      |   |   | $      | 36      |          |   | $ | 420 |   |

| 2. | Includes short-term and long-term debt and excludes loans and notes owed to a parent company. |
|----|-----------------------------------------------------------------------------------------------|

| 3. | Net Debt is defined as total debt attributable to each of the companies, excluding debt owed to a parent company, and the cash and short term deposits and restricted cash of the relevant company. Net Debt is not a measure recognized under IFRS. The tables below set forth a reconciliation of total debt to net debt for IC Power and its subsidiaries. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             |   | Kallpa       |   |   | CDA    |   |   | Samay I |   |   | OPC-Rotem |   |   | OPC-Hadera |   |   | ICPNH  |   |    | PuertoQuetzal |   |   | Nejapa |   |   | Cenérgica |   |   | Kanan  |   |
|------------------|--------|--------------|--------|--------|--------|--------|--------|---------|--------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|---------|---------------|--------|--------|--------|--------|--------|----------------|--------|--------|--------|--------|
|             |   | ($ millions) |   |
| Total debt  |   | $            | 414    |   |   | $      | 593    |    |   | $      | 339       |   |   | $          | 365    |   |   | $      | — |          |   | $      | 88     |   |   | $              | 18     |   |   | $      | 4 |   |   | $ | — |   |   | $ | 46 |   |
| Cash        |   |         | 21     |   |   |   | 37     |    |   |   | 18        |   |   |       | 37     |   |   |   | 1       |          |   |   | 9      |   |   |           | 5      |   |   |   | 1 |   |   |   | 1 |   |   |   | 2 |   |
| Net Debt    |   | $            | 393    |   |   | $      | 556    |    |   | $      | 321       |   |   | $          | 328    |   |   | $      | (1      | )             |   | $      | 79     |   |   | $              | 13     |   |   | $      | 3 |   |   | $ | (1 | ) |   | $ | 44 |   |

|       |   | Guatemel     |    |   | COBEE  |   |   | CentralCardones |   |   | Colmito |   |   | CEPP   |   |   | JPPC   |   |   | Surpetroil |   |   | Recsa |   |   | IC PowerDistributionHoldings |   |   | Inkia &Other |   |
|------------|--------|--------------|---------|--------|--------|--------|--------|-----------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|-------|--------|--------|------------------------------|--------|--------|------------------|--------|
|       |   | ($ millions) |    |
| Total debt |   | $            | — |   |   | $      | 88     |            |   | $      | 35      |   |   | $      | 17     |   |   | $      | 11     |       |   | $      | 1     |   |   | $                            | 2      |   |             | $      | 5 |   |   | $ | 119 |   |   | $ | 448 |   |
| Cash       |   |         | 1       |   |   |   | 37     |            |   |   | 3       |   |   |   | 1      |   |   |   | 2      |       |   |   | 3     |   |   |                         | 1      |   |             |   | 2 |   |   |   | — |   |   |   | 54 |   |
| Net Debt   |   | $            | (1      | )      |   | $      | 51     |            |   | $      | 32      |   |   | $      | 16     |   |   | $      | 9      |       |   | $      | (2    | )      |   | $                            | 1      |   |             | $      | 3 |   |   | $ | 119 |   |   | $ | 394 |   |

|             |   | IC Power, ICPI& Other |   |   | DEOCSA |   |   | DEORSA |   |   | Total ICPower |   |
|------------------|--------|---------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------------|--------|
|             |   | ($ millions)              |   |
| Total debt  |   | $                         | 162    |   |   | $      | 192    |   |   | $      | 125           |   |   | $ | 3,072 |   |
| Cash        |   |                      | 56     |   |   |   | 9      |   |   |   | 7             |   |   |   | 308 |   |
| Net Debt    |   | $                         | 106    |   |   | $      | 183    |   |   | $      | 118           |   |   | $ | 2,764 |   |

| 4. | Through ICPNH, IC Power indirectly holds 65% interests in Corinto and Tipitapa Power and 61% interests in Amayo I and Amayo II. |
|----|---------------------------------------------------------------------------------------------------------------------------------|

| 5 | In addition to the results of certain of IC Power’s generation assets, IC Power’s Other segment also includes expenses and other adjustments relating to its headquarters and intermediate holding companies, including purchase price allocations recorded in connection with IC Power’s acquisition of Energuate, which allocations were recorded by Inkia, one of IC Power’s intermediate holding companies. |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Outstanding debt includes $448 million for Inkia. |
|----|---------------------------------------------------|

| 7. | Includes $12 million of IC Power’s outstanding debt, $52 million of ICPI’s debt and $97 million of Overseas Investment Peru’s debt. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | Year Ended December 31, 2015 |   |
|------------------------------------------|--------|------------------------------|--------|
| Entity                                   |   | OwnershipInterest (%)        |   |   | Sales |   |   | Cost of Sales |   |   | Net Income /(Loss) |   |   | Adjusted EBITDA |   |   | Outstanding Debt2 |   |   | Net Debt3 |   |
|                                     |   | ($ millions)                 |   |
| Peru segment                             |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa                              |   |                         | 75     |   |   | $ | 448 |   |   | $ | 279 |   |   | $ | 43 |   |   | $ | 152 |   |   | $ | 416 |   |   | $ | 388 |   |
| Assets in advance stages of construction |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CDA                                 |   |                         | 75     |   |   |   | — |   |   |   | — |   |   |   | (8 | ) |   |   | — |   |   |   | 536 |   |   |   | 519 |   |
| Samay I                             |   |                         | 75     |   |   |   | — |   |   |   | — |   |   |   | (4 | ) |   |   | — |   |   |   | 285 |   |   |   | 253 |   |
| Israel segment                           |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPC-Rotem                           |   |                         | 80     |   |   |   | 318 |   |   |   | 235 |   |   |   | 20 |   |   |   | 79 |   |   |   | 383 |   |   |   | 255 |   |
| OPC-Hadera                          |   |                         | 100    |   |   |   | 8 |   |   |   | 7 |   |   |   | 2 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Central America segment                  |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ICPNH4                              |   |                         | 61-65  |   |   |   | 111 |   |   |   | 73 |   |   |   | 17 |   |   |   | 36 |   |   |   | 99 |   |   |   | 76 |   |
| Puerto Quetzal                      |   |                         | 100    |   |   |   | 109 |   |   |   | 94 |   |   |   | 2 |   |   |   | 10 |   |   |   | 15 |   |   |   | 7 |   |
| Nejapa                              |   |                         | 100    |   |   |   | 100 |   |   |   | 85 |   |   |   | 4 |   |   |   | 12 |   |   |   | 6 |   |   |   | (3 | ) |
| Cenergica                           |   |                         | 100    |   |   |   | 17 |   |   |   | 13 |   |   |   | 2 |   |   |   | 4 |   |   |   | 1 |   |   |   | (1 | ) |
| Assets in advance stages of construction |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kanan                               |   |                         | 100    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (3 | ) |
| Other segment                            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COBEE                               |   |                         | 100    |   |   |   | 43 |   |   |   | 18 |   |   |   | 10 |   |   |   | 21 |   |   |   | 69 |   |   |   | 50 |   |
| Central Cardones                    |   |                         | 87     |   |   |   | 14 |   |   |   | 2 |   |   |   | 3 |   |   |   | 10 |   |   |   | 44 |   |   |   | 39 |   |
| Colmito                             |   |                         | 100    |   |   |   | 28 |   |   |   | 25 |   |   |   | 1 |   |   |   | 3 |   |   |   | 16 |   |   |   | 15 |   |
| CEPP                                |   |                         | 97     |   |   |   | 39 |   |   |   | 31 |   |   |   | 3 |   |   |   | 6 |   |   |   | 13 |   |   |   | 8 |   |
| JPPC                                |   |                         | 100    |   |   |   | 45 |   |   |   | 41 |   |   |   | (2 | ) |   |   | 2 |   |   |   | 5 |   |   |   | 1 |   |
| Surpetroil                          |   |                         | 60     |   |   |   | 8 |   |   |   | 6 |   |   |   | (1 | ) |   |   | 1 |   |   |   | 3 |   |   |   | 2 |   |
| Holdings                                 |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inkia & Other5                  |   |                         | 100    |   |   |   | 1 |   |   |   | — |   |   |   | (32 | ) |   |   | (4 | ) |   |   | 565 |   |   |   | 273 |   |
| IC Power, ICPI & Other6         |   |                         | 100    |   |   |   | — |   |   |   | — |   |   |   | (7 | ) |   |   | (6 | ) |   |   | 109 |   |   |   | 24 |   |
| Total                               |   |                         |   |   |   | $ | 1,289 |   |   | $ | 909 |   |   | $ | 53 |   |   | $ | 326 |   |   | $ | 2,565 |   |   | $ | 1,903 |   |

| 1. | “Adjusted EBITDA” for each entity for the period is defined as income (loss) before depreciation and amortization, finance expenses, net and income tax expense (benefit). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Includes short-term and long-term debt. |
|----|-----------------------------------------|

| 3. | Net Debt is defined as total debt attributable to each of IC Power’s subsidiaries, minus the cash and short term deposits and restricted cash of such companies. Net Debt is not a measure of liabilities in accordance with IFRS. The tables below set forth a reconciliation of net debt to total debt for IC Power’s subsidiaries. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Through ICPNH, IC Power indirectly holds 65% interests in Corinto and Tipitapa Power and 61% interests in Amayo I and Amayo II. |
|----|---------------------------------------------------------------------------------------------------------------------------------|

| 5. | Outstanding debt includes Inkia for $448 million and $117 million for ICPDH. |
|----|------------------------------------------------------------------------------|

| 6. | Includes $12 million of outstanding IC Power debt and $97 million of ICPI debt. |
|----|---------------------------------------------------------------------------------|

----

|                                |   | Kallpa       |   |   | CDA    |   |    | Samay I |   |   | OPC-Rotem |   |   | OPC- Hadera |   |   | ICPNH  |   |    | Puerto Quetzal |   |
|-------------------------------------|--------|--------------|--------|--------|--------|--------|---------|---------|--------|--------|-----------|--------|--------|-------------|--------|--------|--------|--------|---------|----------------|--------|
|                                |   | ($ millions) |   |
| Income (loss)                  |   | $            | 43     |   |   | $      | (8      | )       |   | $      | (4        | )      |   | $           | 20     |   |   | $      | 2       |           |   | $ | 17 |   |   | $ | 2 |   |
| Depreciation and amortization  |   |         | 50     |   |   |   | — |    |   |   | —   |   |   |        | 26     |   |   |   | — |           |   |   | 10 |   |   |   | 3 |   |
| Finance expenses, net          |   |         | 36     |   |   |   | 3       |    |   |   | 3         |   |   |        | 26     |   |   |   | (3      | )              |   |   | 9 |   |   |   | 2 |   |
| Income tax expense (benefit)   |   |         | 23     |   |   |   | 5       |    |   |   | 1         |   |   |        | 7      |   |   |   | 1       |           |   |   | — |   |   |   | 3 |   |
| Adjusted EBITDA                |   | $            | 152    |   |   | $      | — |    |   | $      | —   |   |   | $           | 79     |   |   | $      | — |           |   | $ | 36 |   |   | $ | 10 |   |

|                                |   | Nejapa       |    |   | Cenérgica |   |    | Kanan  |   |   | COBEE   |   |   | Central Cardones |   |   | Colmito |   |
|-------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------|--------|--------|---------|--------|--------|------------------|--------|--------|---------|--------|
|                                |   | ($ millions) |    |
| Income (loss)                  |   | $            | 4       |   |           | $      | 2       |   |   | $      | — |   |   | $                | 10     |   |    | $      | 3 |   |   | $ | 1 |   |
| Depreciation and amortization  |   |         | 4       |   |           |   | 1       |   |   |   | — |   |   |             | 4      |   |    |   | 4 |   |   |   | 1 |   |
| Finance expenses, net          |   |         | — |   |           |   | — |   |   |   | — |   |   |             | 5      |   |    |   | 2 |   |   |   | 1 |   |
| Income tax expense (benefit)   |   |         | 4       |   |           |   | 1       |   |   |   | — |   |   |             | 2      |   |    |   | 1 |   |   |   | — |   |
| Adjusted EBITDA                |   | $            | 12      |   |           | $      | 4       |   |   | $      | — |   |   | $                | 21     |   |    | $      | 10 |   |   | $ | 3 |   |

|                                |   | CEPP         |   |   | JPPC   |   |   | Surpetroil |   |   | Inkia & Other |   |   | IC Power, ICPI & Other |   |   | Total  |   |
|-------------------------------------|--------|--------------|--------|--------|--------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------------|--------|--------|--------|--------|
|                                |   | ($ millions) |   |
| Income (loss)                  |   | $            | 3      |   |   | $      | (2     | )          |   | $      | (1                | )      |   | $                          | (32    | )      |   | $      | (7 | ) |   | $ | 53 |   |
| Depreciation and amortization  |   |         | 3      |   |   |   | 4      |       |   |   | 3                 |   |   |                       | 6      |   |   |   | — |   |   |   | 119 |   |
| Finance expenses, net          |   |         | (1     | )      |   |   | 1      |       |   |   | —           |   |   |                       | 20     |   |   |   | — |   |   |   | 104 |   |
| Income tax expense (benefit)   |   |         | 1      |   |   |   | (1     | )          |   |   | (1                | )      |   |                       | 2      |   |   |   | 1 |   |   |   | 50 |   |
| Adjusted EBITDA                |   | $            | 6      |   |   | $      | 2      |       |   | $      | 1                 |   |   | $                          | (4     | )      |   | $      | (6 | ) |   | $ | 326 |   |

|             |   | Kallpa       |   |   | CDA    |   |   | Samay I |   |   | OPC-Rotem |   |   | OPCHadera |   |   | ICPNH  |   |    | Puerto Quetzal |   |   | Nejapa |   |   | Cenérgica |   |
|------------------|--------|--------------|--------|--------|--------|--------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|---------|----------------|--------|--------|--------|--------|--------|----------------|--------|
|             |   | ($ millions) |   |
| Total debt  |   | $            | 416    |   |   | $      | 536    |    |   | $      | 285       |   |   | $         | 383    |   |   | $      | — |           |   | $      | 99     |   |   | $              | 15     |   |   | $ | 6 |   |   | $ | 1 |   |
| Cash        |   |         | 28     |   |   |   | 17     |    |   |   | 32        |   |   |      | 128    |   |   |   | — |           |   |   | 23     |   |   |           | 8      |   |   |   | 9 |   |   |   | 2 |   |
| Net Debt    |   | $            | 388    |   |   | $      | 519    |    |   | $      | 253       |   |   | $         | 255    |   |   | $      | — |           |   | $      | 76     |   |   | $              | 7      |   |   | $ | (3 | ) |   | $ | (1 | ) |

----

|             |   | Kanan        |    |   | COBEE  |   |   | Central Cardones |   |   | Colmito |   |   | CEPP   |   |   | JPPC   |   |   | Surpetroil |   |   | Inkia & Other |   |   | IC Power, ICPI & Other |   |   | Total  |   |
|------------------|--------|--------------|---------|--------|--------|--------|--------|------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------------|--------|--------|--------|--------|
|             |   | ($ millions) |    |
| Total debt  |   |         | — |   |   | $      | 69     |             |   | $      | 44      |   |   | $      | 16     |   |   | $      | 13     |       |   | $      | 5                 |   |   | $                          | 3      |   |   | $      | 565 |   |   | $ | 109 |   |   | $ | 2,565 |   |
| Cash        |   |         | 3       |   |   |   | 19     |             |   |   | 5       |   |   |   | 1      |   |   |   | 5      |       |   |   | 4                 |   |   |                       | 1      |   |   |   | 292 |   |   |   | 85 |   |   |   | 662 |   |
| Net Debt    |   | $            | (3      | )      |   | $      | 50     |             |   | $      | 39      |   |   | $      | 15     |   |   | $      | 8      |       |   | $      | 1                 |   |   | $                          | 2      |   |   | $      | 273 |   |   | $ | 24 |   |   | $ | 1,903 |   |

|                                      |   | Year Ended December 31, 2014 |   |
|-------------------------------------------|--------|------------------------------|--------|
| Entity                                    |   | OwnershipInterest (%)        |   |   | Sales |   |   | Cost of Sales |   |   | Net Income /(Loss) |   |   | Adjusted EBITDA1 |   |   | Outstanding Debt2 |   |   | Net Debt3 |   |
|                                      |   | ($ millions)                 |   |
| Peru segment                              |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa                               |   |                         | 75     |   |   | $ | 437 |   |   | $ | 270 |   |   | $ | 50 |   |   | $ | 154 |   |   | $ | 453 |   |   | $ | 428 |   |
| Assets in advanced stages of construction |   |                         |   |   |   |   |   |
| CDA                                  |   |                         | 75     |   |   |   | — |   |   |   | — |   |   |   | (5 | ) |   |   | — |   |   |   | 444 |   |   |   | 338 |   |
| Samay I                              |   |                         | 75     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 145 |   |   |   | 11 |   |
| Israel segment                            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPC-Rotem                            |   |                         | 80     |   |   |   | 413 |   |   |   | 252 |   |   |   | 71 |   |   |   | 153 |   |   |   | 419 |   |   |   | 231 |   |
| Central America segment                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ICPNH4                               |   |                         | 61-65  |   |   |   | 125 |   |   |   | 98 |   |   |   | 6 |   |   |   | 22 |   |   |   | 108 |   |   |   | 92 |   |
| Puerto Quetzal                       |   |                         | 100    |   |   |   | 33 |   |   |   | 29 |   |   |   | (1 | ) |   |   | 3 |   |   |   | 32 |   |   |   | 14 |   |
| Nejapa                               |   |                         | 71     |   |   |   | 132 |   |   |   | 119 |   |   |   | 4 |   |   |   | 11 |   |   |   | — |   |   |   | (23 | ) |
| Cenérgica                       |   |                         | 100    |   |   |   | 18 |   |   |   | 14 |   |   |   | 2 |   |   |   | 4 |   |   |   | — |   |   |   | (4 | ) |
| Assets in advanced stages of construction |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kanan                                |   |                         | 100    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (4 | ) |
| Other                                     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COBEE                                |   |                         | 100    |   |   |   | 41 |   |   |   | 18 |   |   |   | 9 |   |   |   | 19 |   |   |   | 85 |   |   |   | 43 |   |
| Central Cardones                     |   |                         | 87     |   |   |   | 11 |   |   |   | 2 |   |   |   | (1 | ) |   |   | 7 |   |   |   | 48 |   |   |   | 44 |   |
| Colmito                              |   |                         | 100    |   |   |   | 38 |   |   |   | 36 |   |   |   | — |   |   |   | 2 |   |   |   | 20 |   |   |   | 19 |   |
| CEPP                                 |   |                         | 97     |   |   |   | 73 |   |   |   | 56 |   |   |   | 9 |   |   |   | 16 |   |   |   | 30 |   |   |   | 22 |   |
| JPPC                                 |   |                         | 100    |   |   |   | 41 |   |   |   | 39 |   |   |   | (2 | ) |   |   | 1 |   |   |   | 8 |   |   |   | 4 |   |
| Surpetroil                           |   |                         | 60     |   |   |   | 9 |   |   |   | 3 |   |   |   | 2 |   |   |   | 5 |   |   |   | 3 |   |   |   | 2 |   |
| Inkia & Other5                   |   |                         | 100    |   |   |   | 1 |   |   |   | — |   |   |   | 131 |   |   |   | 1 |   |   |   | 447 |   |   |   | 262 |   |
| IC Power, ICPI & Other6          |   |                         | 100    |   |   |   | — |   |   |   | — |   |   |   | (19 | ) |   |   | (3 | ) |   |   | 106 |   |   |   | 78 |   |
| Total                                |   |                         |   |   |   | $ | 1,372 |   |   | $ | 936 |   |   | $ | 256 |   |   | $ | 395 |   |   | $ | 2,348 |   |   | $ | 1,557 |   |

| 1. | “Adjusted EBITDA” for each entity for the period is defined as net income (loss) before depreciation and amortization, financing expenses, net, income tax expense (benefit) and asset write-off, excluding share in income (loss) from associates, gain on bargain purchase, measurement to fair value of pre-existing share and net income from discontinued operations, net of tax (excluding dividends received from discontinued operations). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Includes short-term and long-term debt. |
|----|-----------------------------------------|

| 3. | Net Debt is defined as total debt attributable to each of IC Power’s subsidiaries, minus the cash and short term deposits and restricted cash of such companies. Net Debt is not a measure of liabilities in accordance with IFRS. The tables below set forth a reconciliation of net debt to total debt for IC Power’s subsidiaries. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Through ICPNH, IC Power indirectly holds 65% interests in Corinto and Tipitapa Power and 61% interests in Amayo I and Amayo II. |
|----|---------------------------------------------------------------------------------------------------------------------------------|

| 5. | Outstanding debt includes Inkia for $447 million. |
|----|---------------------------------------------------|

| 6. | Includes $12 million of outstanding IC Power debt and $94 million of ICPI debt. |
|----|---------------------------------------------------------------------------------|

|                                 |   | Kallpa       |   |   | CDA    |   |    | Samay I |   |   | OPC-Rotem |   |   | ICPNH  |   |   | Puerto Quetzal |   |
|--------------------------------------|--------|--------------|--------|--------|--------|--------|---------|---------|--------|--------|-----------|--------|--------|--------|--------|--------|----------------|--------|
|                                 |   | ($ millions) |   |
| Net income (loss) for the year  |   | $            | 50     |   |   | $      | (5      | )       |   |   | —   |   |   | $      | 71     |   |           | $      | 6 |   |   | $ | (1 | ) |
| Depreciation and amortization   |   |         | 46     |   |   |   | — |    |   |   | —   |   |   |   | 25     |   |           |   | 8 |   |   |   | 1 |   |
| Financing expenses, net         |   |         | 35     |   |   |   | — |    |   |   | —   |   |   |   | 31     |   |           |   | 7 |   |   |   | 1 |   |
| Income tax expense (benefit)    |   |         | 23     |   |   |   | (5      | )       |   |   | —   |   |   |   | 26     |   |           |   | 1 |   |   |   | 2 |   |
| Adjusted EBITDA                 |   | $            | 154    |   |   | $      | — |    |   | $      | —   |   |   | $      | 153    |   |           | $      | 22 |   |   | $ | 3 |   |

----

|                                 |   | Nejapa       |    |   | Cenérgica |   |    | COBEE  |   |   | Central Cardones |   |   | Colmito |   |
|--------------------------------------|--------|--------------|---------|--------|----------------|--------|---------|--------|--------|--------|------------------|--------|--------|---------|--------|
|                                 |   | ($ millions) |    |
| Net income (loss) for the year  |   | $            | 4       |   |           | $      | 2       |   |   | $      | 9                |   |   | $       | (1     | ) |   | $ | — |   |
| Depreciation and amortization   |   |         | 5       |   |           |   | 1       |   |   |   | 4                |   |   |    | 4      |   |   |   | 1 |   |
| Financing expenses, net         |   |         | — |   |           |   | — |   |   |   | 4                |   |   |    | 2      |   |   |   | 1 |   |
| Income tax expense              |   |         | 2       |   |           |   | 1       |   |   |   | 2                |   |   |    | 2      |   |   |   | — |   |
| Adjusted EBITDA                 |   | $            | 11      |   |           | $      | 4       |   |   | $      | 19               |   |   | $       | 7      |   |   | $ | 2 |   |

|                                                                                                                 |   | CEPP         |    |   | JPPC   |   |    | Surpetroil |   |   | Inkia & Other |   |   | IC Power, ICPI & Other |   |   | Total  |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|--------|--------|---------|------------|--------|--------|-------------------|--------|--------|----------------------------|--------|--------|--------|--------|
|                                                                                                                 |   | ($ millions) |    |
| Net income (loss) for the year                                                                                  |   | $            | 9       |   |   | $      | (2      | )          |   | $      | 2                 |   |   | $                          | 131    |   |   | $      | (19 | ) |   | $ | 256 |   |
| Depreciation and amortization                                                                                   |   |         | 3       |   |   |   | 3       |       |   |   | 1                 |   |   |                       | 6      |   |   |   | — |   |   |   | 108 |   |
| Financing expenses, net                                                                                         |   |         | 1       |   |   |   | 1       |       |   |   | 1                 |   |   |                       | 23     |   |   |   | 12 |   |   |   | 119 |   |
| Income tax expense (benefit)                                                                                    |   |         | 3       |   |   |   | (1      | )          |   |   | 1                 |   |   |                       | (8     | )      |   |   | 4 |   |   |   | 63 |   |
| Asset write-off                                                                                                 |   |         | — |   |   |   | — |       |   |   | —           |   |   |                       | 35     |   |   |   | — |   |   |   | 35 |   |
| Share in income (loss) from associates                                                                          |   |         | — |   |   |   | — |       |   |   | —           |   |   |                       | (2     | )      |   |   | — |   |   |   | (2 | ) |
| Gain on bargain purchase                                                                                        |   |         | — |   |   |   | — |       |   |   | —           |   |   |                       | (68    | )      |   |   | — |   |   |   | (68 | ) |
| Measurement to fair value of pre-existing share                                                                      |   |         | — |   |   |   | — |       |   |   | —           |   |   |                       | (3     | )      |   |   | — |   |   |   | (3 | ) |
| Net income from discontinued operations, net of tax, excluding dividends received from discontinued  operations |   |         | — |   |   |   | — |       |   |   | —           |   |   |                       | (113   | )      |   |   | — |   |   |   | (113 | ) |
| Adjusted EBITDA                                                                                                 |   | $            | 16      |   |   | $      | 1       |       |   | $      | 5                 |   |   | $                          | 1      |   |   | $      | (3 | ) |   | $ | 395 |   |

|             |   | Kallpa       |   |   | CDA    |   |   | Samay I |   |   | OPC-Rotem |   |   | ICPNH  |   |   | Puerto Quetzal |   |   | Nejapa |   |   | Cenérgica |   |   | Kanan  |    |   | COBEE  |   |
|------------------|--------|--------------|--------|--------|--------|--------|--------|---------|--------|--------|-----------|--------|--------|--------|--------|--------|----------------|--------|--------|--------|--------|--------|----------------|--------|--------|--------|---------|--------|--------|--------|
|             |   | ($ millions) |   |
| Total debt  |   | $            | 453    |   |   | $      | 444    |    |   | $      | 145       |   |   | $      | 419    |   |           | $      | 108    |   |   | $      | 32             |   |   | $      | — |   |   | $      | — |   |   | $ | — |   |   | $ | 85 |   |
| Cash        |   |         | 25     |   |   |   | 106    |    |   |   | 134       |   |   |   | 188    |   |           |   | 16     |   |   |   | 18             |   |   |   | 23      |   |   |   | 4 |   |   |   | 4 |   |   |   | 42 |   |
| Net Debt    |   | $            | 428    |   |   | $      | 338    |    |   | $      | 11        |   |   | $      | 231    |   |           | $      | 92     |   |   | $      | 14             |   |   | $      | (23     | )      |   | $      | (4 | ) |   | $ | (4 | ) |   | $ | 43 |   |

|             |   | Central Cardones |   |   | Colmito |   |   | CEPP   |   |   | JPPC |   |   | Surpetroil |   |   | Inkia & Other |   |   | IC Power, ICPI & Other |   |   | Total |   |
|------------------|--------|------------------|--------|--------|---------|--------|--------|--------|--------|--------|------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------------|--------|--------|-------|--------|
|             |   | ($ millions)     |   |
| Total debt  |   | $                | 48     |   |    | $      | 20     |   |   | $      | 30   |   |   | $          | 8      |   |              | $      | 3      |                       |   | $      | 447   |   |   | $ | 106 |   |   | $ | 2,348 |   |
| Cash        |   |             | 4      |   |    |   | 1      |   |   |   | 8    |   |   |       | 4      |   |              |   | 1      |                       |   |   | 185   |   |   |   | 28 |   |   |   | 791 |   |
| Net Debt    |   | $                | 44     |   |    | $      | 19     |   |   | $      | 22   |   |   | $          | 4      |   |              | $      | 2      |                       |   | $      | 262   |   |   | $ | 78 |   |   | $ | 1,557 |   |

----

|                    |   | Year Ended December 31, 2016 |   |
|-------------------------|--------|------------------------------|--------|
| Entity                  |   | InstalledCapacity(MW)1       |   |   | ProportionateCapacity2 |   |   | Grossenergygenerated (GWh) |   |   | Availability factor (%) |   |   | Average heatrate3 |   |   | Averagesales price($ per MWh)4 |   |   | Averagefuel cost ($ per MWh) |   |
|                    |   | Operating Companies          |   |
| Peru segment            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa             |   |                         | 1,063  |   |   |   | 797 |   |   |   | 6,015 |   |   |   | 96 | % |   |   | 7,675 |   |   |   | 74 |   |   |   | 26 |   |
| Samay I            |   |                         | 632    |   |   |   | 473 |   |   |   | 103 |   |   |   | 33 | % |   |   | 10,240 |   |   |   | 426 |   |   |   | 106 |   |
| CDA                |   |                         | 545    |   |   |   | 409 |   |   |   | 693 |   |   |   | 33 | % |   |   | - |   |   |   | 73 |   |   |   | — |   |
| Israel segment          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPC-Rotem          |   |                         | 440    |   |   |   | 352 |   |   |   | 3,487 |   |   |   | 91 | % |   |   | 6,759 |   |   |   | 91 |   |   |   | 37 |   |
| OPC-Hadera              |   |                         | 18     |   |   |   | 18 |   |   |   | 102 |   |   |   | 95 | % |   |   | 4,258 |   |   |   | 511 |   |   |   | 65 |   |
| Central America segment |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ICPNH              |   |                         | 185    |   |   |   | 117 |   |   |   | 978 |   |   |   | 88 | % |   |   | 5,845 |   |   |   | 95 |   |   |   | 41 |   |
| Puerto Quetzal     |   |                         | 179    |   |   |   | 179 |   |   |   | 364 |   |   |   | 95 | % |   |   | 9,088 |   |   |   | 159 |   |   |   | 49 |   |
| Nejapa             |   |                         | 140    |   |   |   | 140 |   |   |   | 387 |   |   |   | 97 | % |   |   | 9,621 |   |   |   | 217 |   |   |   | 65 |   |
| Kanan              |   |                         | 92     |   |   |   | 92 |   |   |   | 169 |   |   |   | 69 | % |   |   | 9,939 |   |   |   | 409 |   |   |   | 61 |   |
| Other                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COBEE              |   |                         | 228    |   |   |   | 228 |   |   |   | 889 |   |   |   | 92 | % |   |   | 13,594 |   |   |   | 47 |   |   |   | — |   |
| Central Cardones   |   |                         | 153    |   |   |   | 133 |   |   |   | 1 |   |   |   | 98 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Colmito            |   |                         | 58     |   |   |   | 58 |   |   |   | 9 |   |   |   | 99 | % |   |   | 9,252 |   |   |   | 2,625 |   |   |   | 125 |   |
| CEPP               |   |                         | 67     |   |   |   | 65 |   |   |   | 264 |   |   |   | 78 | % |   |   | 9,550 |   |   |   | 113 |   |   |   | 51 |   |
| JPPC               |   |                         | 60     |   |   |   | 60 |   |   |   | 408 |   |   |   | 85 | % |   |   | 8,166 |   |   |   | 108 |   |   |   | 59 |   |
| Surpetroil         |   |                         | 31     |   |   |   | 19 |   |   |   | 75 |   |   |   | 97 | % |   |   | 12,606 |   |   |   | 107 |   |   |   | 27 |   |
| Pedregal           |   |                         | 54     |   |   |   | 11 |   |   |   | 264 |   |   |   | 97 | % |   |   | 8,832 |   |   |   | 134 |   |   |   | 50 |   |
| Total              |   |                         | 3,945  |   |   |   | 3,152 |   |   |   | 14,208 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 1. | Reflects 100% of the capacity of each of IC Power’s assets, regardless of the ownership interest in the entity that owns each such asset. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Reflects the proportionate capacity of each of IC Power’s assets, as determined by the ownership interest in the entity that owns each such asset. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Heat rate is defined as the number of Btus of energy contained in the fuel required to produce a kilowatt-hour of energy (btu/kWh) for thermal plants. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Includes revenues from energy and capacity sales. Average sales prices are generally higher for IC Power’s generation businesses which generate a higher percentage of their total revenues through capacity sales. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | Year Ended December 31, 2015 |   |
|-------------------------|--------|------------------------------|--------|
| Entity                  |   | Installed Capacity (MW)1     |   |   | Proportionate Capacity2 |   |   | Gross energy generated (GWh) |   |   | Availability factor (%) |   |   | Average heat rate |   |   | Average sales price ($ per MWh)3 |   |   | Averagefuel cost ($ per MWh) |   |
|                    |   | Operating Companies          |   |
| Peru segment            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa             |   |                         | 1,063  |   |   |   | 797 |   |   |   | 5,166 |   |   |   | 97 |   |   |   | 7,868 |   |   |   | 57 |   |   |   | 28 |   |
| Israel segment          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPC-Rotem          |   |                         | 440    |   |   |   | 352 |   |   |   | 3,811 |   |   |   | 99 |   |   |   | 6,730 |   |   |   | 80 |   |   |   | 36 |   |
| OPC-Hadera         |   |                         | 18     |   |   |   | 18 |   |   |   | 26 | 4  |   |   | 58 |   |   |   | 4,630 |   |   |   | 53 |   |   |   | 40 |   |
| Central America segment |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ICPNH              |   |                         | 185    |   |   |   | 117 |   |   |   | 1,095 |   |   |   | 90 |   |   |   | 8,926 |   |   |   | 99 |   |   |   | 51 |   |
| Puerto Quetzal     |   |                         | 179    |   |   |   | 179 |   |   |   | 673 |   |   |   | 94 |   |   |   | 9,107 |   |   |   | 113 |   |   |   | 74 |   |
| Nejapa             |   |                         | 140    |   |   |   | 140 |   |   |   | 440 |   |   |   | 96 |   |   |   | 9,591 |   |   |   | 117 |   |   |   | 83 |   |
| Other                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COBEE              |   |                         | 228    |   |   |   | 228 |   |   |   | 1,081 |   |   |   | 89 |   |   |   | 13,594 |   |   |   | 39 |   |   |   | 16 |   |
| Central Cardones   |   |                         | 153    |   |   |   | 133 |   |   |   | 4 |   |   |   | 97 |   |   |   | 11,241 |   |   |   | 217 |   |   |   | 229 |   |
| Colmito            |   |                         | 58     |   |   |   | 58 |   |   |   | 27 |   |   |   | 99 |   |   |   | 9,221 |   |   |   | 95 |   |   |   | 114 |   |
| CEPP               |   |                         | 67     |   |   |   | 65 |   |   |   | 298 |   |   |   | 81 |   |   |   | 9,470 |   |   |   | 125 |   |   |   | 73 |   |
| JPPC               |   |                         | 60     |   |   |   | 60 |   |   |   | 445 |   |   |   | 86 |   |   |   | 7,989 |   |   |   | 101 |   |   |   | 69 |   |
| Surpetroil         |   |                         | 20     |   |   |   | 12 |   |   |   | 43 |   |   |   | 96 |   |   |   | 13,829 |   |   |   | 104 |   |   |   | 38 |   |
| Pedregal           |   |                         | 54     |   |   |   | 11 |   |   |   | 356 |   |   |   | 94 |   |   |   | 8,859 |   |   |   | 107 |   |   |   | 71 |   |
| Total              |   |                         | 2,665  |   |   |   | 2,170 |   |   |   | 13,465 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 1. | Reflects 100% of the capacity of each of IC Power’s assets, regardless of the ownership interest in the entity that owns each such asset. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Reflects the proportionate capacity of each of IC Power’s assets, as determined by the ownership interest in the entity that owns each such asset. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Includes revenues from energy and capacity sales. Average sales prices are generally higher for IC Power’s generation businesses which generate a higher percentage of their total revenues through capacity sales. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Reflects gross energy generated (GWh) since IC Power acquired OPC-Hadera in August 2015. |
|----|------------------------------------------------------------------------------------------|

----

|                    |   | Year Ended December 31, 2014 |   |
|-------------------------|--------|------------------------------|--------|
| Entity1                 |   | Installed Capacity (MW)2     |   |   | Proportionate Capacity3 |   |   | Gross energy generated (GWh) |   |   | Availability factor (%) |   |   | Average heat rate |   |   | Average sales price ($ per MWh)4 |   |   | Averagefuel cost ($ per MWh) |   |
|                    |   | Operating Companies          |   |
| Peru segment            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa             |   |                         | 1,063  |   |   |   | 797 |   |   |   | 5,920 |   |   |   | 97 |   |   |   | 7,105 |   |   |   | 55 |   |   |   | 24 |   |
| Israel segment          |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| OPC-Rotem          |   |                         | 440    |   |   |   | 352 |   |   |   | 3,465 |   |   |   | 90 |   |   |   | 6,754 |   |   |   | 104 |   |   |   | 40 |   |
| Central America segment |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ICPNH              |   |                         | 185    |   |   |   | 117 |   |   |   | 1,099 |   |   |   | 95 |   |   |   | 9,011 |   |   |   | 143 |   |   |   | 96 |   |
| Puerto Quetzal     |   |                         | 179    |   |   |   | 179 |   |   |   | 490 |   |   |   | 97 |   |   |   | 9,182 |   |   |   | 126 |   |   |   | 137 |   |
| Nejapa             |   |                         | 140    |   |   |   | 99 |   |   |   | 376 |   |   |   | 97 |   |   |   | 9,597 |   |   |   | 178 |   |   |   | 158 |   |
| Other                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| COBEE              |   |                         | 228    |   |   |   | 228 |   |   |   | 1,085 |   |   |   | 91 |   |   |   | 13,786 |   |   |   | 40 |   |   |   | 15 |   |
| Central Cardones   |   |                         | 153    |   |   |   | 133 |   |   |   | — |   |   |   | 97 |   |   |   | 12,238 |   |   |   |   |   |   |   | — |   |
| Colmito            |   |                         | 58     |   |   |   | 58 |   |   |   | 6 |   |   |   | 95 |   |   |   | 8,521 |   |   |   | 148 |   |   |   | 241 |   |
| CEPP               |   |                         | 67     |   |   |   | 65 |   |   |   | 242 |   |   |   | 89 |   |   |   | 9,539 |   |   |   | 227 |   |   |   | 146 |   |
| JPPC               |   |                         | 60     |   |   |   | 60 |   |   |   | 425 |   |   |   | 85 |   |   |   | 8,306 |   |   |   | 182 |   |   |   | 137 |   |
| Surpetroil         |   |                         | 15     |   |   |   | 9 |   |   |   | 48 |   |   |   | 84 |   |   |   | 14,900 |   |   |   | 140 |   |   |   | 21 |   |
| Pedregal           |   |                         | 54     |   |   |   | 11 |   |   |   | 405 |   |   |   | 93 |   |   |   | 8,800 |   |   |   | 196 |   |   |   | 129 |   |
| Total              |   |                         | 2,642  |   |   |   | 2,108 |   |   |   | 13,561 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 1. | Does not include Enel Generación Perú, which IC Power sold in September 2014. |
|----|-----------------------------------------------------------------------------------------|

| 2. | Reflects 100% of the capacity of each of IC Power’s assets, regardless of IC Power’s ownership interest in the entity that owns each such asset. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Reflects the proportionate capacity of each of IC Power’s assets, as determined by the ownership interest in the entity that owns each such asset. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Includes revenues from energy and capacity sales. Average sales prices are generally higher for IC Power’s generation businesses which generate a higher percentage of their total revenues through capacity sales. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             |   |               |   | **As of**          |   |   | Years Ended December 31, |   |
|-------------|--------|--------------------|--------|--------------------|--------|--------|--------------------------|--------|
|        |   |          |   | December 31, 2016  |   |   | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Turbine     |   | Year of Commission |   | Installed Capacity |   |   | Gross Energy Generated   |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|        |   |               |   | (MW)               |   |   | (GWh)                    |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Kallpa I1   |   | 2007               |   |               | 186    |   |                     |   | 1,314 |   |   |   | 98 |   |   |   | 954 |   |   |   | 91 |   |   |   | 1,243 |   |   |   | 96 |   |
| Kallpa II1  |   | 2009               |   |               | 195    |   |                     |   | 1,109 |   |   |   | 84 |   |   |   | 1,126 |   |   |   | 99 |   |   |   | 1,266 |   |   |   | 97 |   |
| Kallpa III1 |   | 2010               |   |               | 197    |   |                     |   | 1,257 |   |   |   | 99 |   |   |   | 1,218 |   |   |   | 99 |   |   |   | 1,262 |   |   |   | 96 |   |
| Kallpa IV2  |   | 2012               |   |               | 292    |   |                     |   | 2,016 |   |   |   | 99 |   |   |   | 1,759 |   |   |   | 95 |   |   |   | 2,027 |   |   |   | 98 |   |
| Las Flores  |   | 2014               |   |               | 193    |   |                     |   | 319 |   |   |   | 99 |   |   |   | 109 |   |   |   | 100 |   |   |   | 122 |   |   |   | 96 |   |
| Total  |   |               |   |               | 1,063  |   |                     |   | 6,015 |   |   |   |   |   |   |   | 5,166 |   |   |   |   |   |   |   | 5,920 |   |   |   |   |   |

| 1. | Reflects the effective capacity of the turbine at its COD. |
|----|------------------------------------------------------------|

| 2. | Reflects the installed capacity. Kallpa IV is the steam turbine built to convert the Kallpa plant to combined cycle, which reached its COD in August 2012. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|      |   | As ofYear Ended December 31, |   |
|-----------|--------|------------------------------|--------|
|      |   | December 31, 2016            |   |   | 2016 |   |   | 2015 |   |   | 2014 |   |
| Plant     |   | InstalledCapacity            |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|      |   | (MW)                         |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| OPC-Rotem |   |                         | 440    |   |   |   | 3,487 |   |   |   | 91 | % |   |   | 3,811 |   |   |   | 99 | % |   |   | 3,465 |   |   |   | 90 | % |

----

----

|  | · | Corinto has commitments for 70% of its available energy in every year up to December 2018; |
|--|--------|--------------------------------------------------------------------------------------------|

|  | · | Tipitapa Power has commitments for 100% of its available energy in every year up to December 2018; |
|--|--------|----------------------------------------------------------------------------------------------------|

|  | · | Amayo I has commitments for 100% of its available energy in every year up to March 2024; and |
|--|--------|----------------------------------------------------------------------------------------------|

|  | · | Amayo II has commitments for 100% of its available energy in every year up to March 2025. |
|--|--------|-------------------------------------------------------------------------------------------|

----

|           |   |               |   | **As of**              |   |   | Years Ended December 31, |   |
|----------------|--------|--------------------|--------|------------------------|--------|--------|--------------------------|--------|
|           |   |               |   | **December 31,**       |   |   | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant          |   | Year of Commission |   | 2016Installed Capacity |   |   | Gross Energy Generated   |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|           |   |               |   | (MW)                   |   |   | (GWh)                    |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Corinto   |   | 1999               |   |                   | 71     |   |                     |   | 368 |   |   |   | 71 |   |   |   | 476 |   |   |   | 93 |   |   |   | 494 |   |   |   | 93 |   |
| Tipitapa Power |   | 1999               |   |                   | 51     |   |                     |   | 369 |   |   |   | 94 |   |   |   | 345 |   |   |   | 92 |   |   |   | 327 |   |   |   | 98 |   |
| Amayo I   |   | 2009               |   |                   | 40     |   |                     |   | 144 |   |   |   | 95 |   |   |   | 186 |   |   |   | 94 |   |   |   | 174 |   |   |   | 98 |   |
| Amayo II  |   | 2010               |   |                   | 23     |   |                     |   | 97 |   |   |   | 98 |   |   |   | 88 |   |   |   | 70 |   |   |   | 104 |   |   |   | 96 |   |
| Total     |   |               |   |                   | 185    |   |                     |   | 978 |   |   |   |   |   |   |   | 1,095 |   |   |   |   |   |   |   | 1,099 |   |   |   |   |   |

|           |   |               |   | **As of**              |   |   | Years Ended December 31, |   |
|----------------|--------|--------------------|--------|------------------------|--------|--------|--------------------------|--------|
|           |   |               |   | **December 31,**       |   |   | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant          |   | Year of Commission |   | 2016Installed Capacity |   |   | Gross Energy Generated   |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|           |   |               |   | (MW)                   |   |   | (GWh)                    |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Puerto Quetzal |   | 1993               |   |                   | 179    |   |                     |   | 364 |   |   |   | 95 |   |   |   | 673 |   |   |   | 94 |   |   |   | 490 |   |   |   | 97 |   |

----

|              |   | As of              |   |               | Years Ended December 31, |   |
|--------------|--------|--------------------|--------|--------------------|--------------------------|--------|
|         |   | December 31, 2016  |   |               | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant        |   | Year of Commission |   | Installed Capacity |                     |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|         |   |               |   | (MW)               |                     |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Nejapa  |   | 1995               |   |               | 140                      |   |   |   | 387 |   |   |   | 97 |   |   |   | 440 |   |   |   | 96 |   |   |   | 376 |   |   |   | 97 |   |

----

|                         |   |               | **As of**         |      |   | Years Ended December 31, |               |
|-------------------------|--------|--------------------|-------------------|-----------|--------|--------------------------|--------------------|
|                    |   |               | December 31, 2016 |      |   | 2016                     |               |   | 2015 |   |   | 2014 |   |
| Plant                   |   | Year of Commission |              | Elevation |   |                     | Installed Capacity |   |   | GrossEnergy Generated |   |   | Availability Factor |   |   | GrossEnergy Generated |   |   | Availability Factor |   |   | GrossEnergy Generated |   |   | Availability Factor |   |
|                    |   |          |              | (meters)  |   |                     | (MW)               |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Zongo Valley plants:    |   |               |              |      |   |                     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Zongo              |   | 1997               |              |      | 4,264  |                     |               |   | 11 |   |   |   | 9 |   |   |   | 96 |   |   |   | 10 |   |   |   | 98 |   |   |   | 9 |   |   |   | 99 |   |
| Tiquimani          |   | 1997               |              |      | 3,889  |                     |               |   | 9 |   |   |   | 7 |   |   |   | 100 |   |   |   | 13 |   |   |   | 98 |   |   |   | 11 |   |   |   | 99 |   |
| Botijlaca          |   | 1938               |              |      | 3,492  |                     |               |   | 7 |   |   |   | 27 |   |   |   | 98 |   |   |   | 39 |   |   |   | 99 |   |   |   | 34 |   |   |   | 97 |   |
| Cutichucho         |   | 1942               |              |      | 2,697  |                     |               |   | 23 |   |   |   | 94 |   |   |   | 97 |   |   |   | 128 |   |   |   | 95 |   |   |   | 91 |   |   |   | 80 |   |
| Santa Rosa         |   | 2006               |              |      | 2,572  |                     |               |   | 18 |   |   |   | 67 |   |   |   | 96 |   |   |   | 86 |   |   |   | 97 |   |   |   | 84 |   |   |   | 98 |   |
| Sainani1           |   | 1956               |              |      | 2,210  |                     |               |   | 10 |   |   |   | 54 |   |   |   | 96 |   |   |   | 24 |   |   |   | 34 |   |   |   | 15 |   |   |   | 17 |   |
| Chururaqui         |   | 1966               |              |      | 1,830  |                     |               |   | 25 |   |   |   | 107 |   |   |   | 98 |   |   |   | 139 |   |   |   | 96 |   |   |   | 127 |   |   |   | 95 |   |
| Harca              |   | 1969               |              |      | 1,480  |                     |               |   | 26 |   |   |   | 125 |   |   |   | 96 |   |   |   | 162 |   |   |   | 95 |   |   |   | 156 |   |   |   | 95 |   |
| Cahua              |   | 1974               |              |      | 1,195  |                     |               |   | 28 |   |   |   | 130 |   |   |   | 95 |   |   |   | 163 |   |   |   | 94 |   |   |   | 163 |   |   |   | 95 |   |
| Huaji              |   | 1999               |              |      | 945    |                     |               |   | 30 |   |   |   | 162 |   |   |   | 96 |   |   |   | 180 |   |   |   | 92 |   |   |   | 198 |   |   |   | 96 |   |
| Miguillas Valley plants |   |               |              |      |   |                     |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Miguillas          |   | 1931               |              |      | 4,140  |                     |               |   | 4 |   |   |   | 7 |   |   |   | 99 |   |   |   | 9 |   |   |   | 91 |   |   |   | 9 |   |   |   | 99 |   |
| Angostura          |   | 1936               |              |      | 3,827  |                     |               |   | 6 |   |   |   | 17 |   |   |   | 94 |   |   |   | 19 |   |   |   | 92 |   |   |   | 19 |   |   |   | 99 |   |
| Choquetanga        |   | 1939               |              |      | 3,283  |                     |               |   | 6 |   |   |   | 30 |   |   |   | 95 |   |   |   | 37 |   |   |   | 95 |   |   |   | 37 |   |   |   | 98 |   |
| Carabuco           |   | 1958               |              |      | 2,874  |                     |               |   | 6 |   |   |   | 36 |   |   |   | 97 |   |   |   | 42 |   |   |   | 94 |   |   |   | 43 |   |   |   | 97 |   |
| El Alto-Kenko2          |   | 1995               |              |      | 4,050  |                     |               |   | 19 |   |   |   | 17 |   |   |   | 46 |   |   |   | 30 |   |   |   | 50 |   |   |   | 90 |   |   |   | 93 |   |
| Total              |   |               |              |      |   |                     |               |   | 228 |   |   |   | 889 |   |   |   |   |   |   |   | 1,081 |   |   |   |   |   |   |   | 1,086 |   |   |   |   |   |

| 1. | Plant was temporarily out of service due to damages sustained as a result of landslides in March 2014. The plant, which cost approximately $5 million to repair, came back on-line in August 2015. The company maintains insurance which covers the loss of revenue as a result of property damage and business interruption for up to 12 months. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Reflects the effective capacity of El Alto—Kenko, which is comprised of two open-cycle turbines. The turbines have an installed capacity of 29 MW. However, as a result of the high altitude of the turbines (which are located at 4,050 meters above sea level), the installed capacity of these turbines are de-rated, resulting in an effective capacity of 19 MW. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                  |   | **As of**          |   |               | Years Ended December 31, |   |
|------------------|--------|--------------------|--------|--------------------|--------------------------|--------|
|             |   | December 31, 2016  |   |               | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant            |   | Year of Commission |   | Installed Capacity |                     |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|             |   |               |   | (MW)               |                     |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Central Cardones |   | 2009               |   |               | 153                      |   |   |   | — |   |   |   | 98 |   |   |   | 4 |   |   |   | 97 |   |   |   | — |   |   |   | 97 |   |

|               |   | **As of**          |   |               | Years Ended December 31, |   |
|---------------|--------|--------------------|--------|--------------------|--------------------------|--------|
|          |   | December 31, 2016  |   |               | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant         |   | Year of Commission |   | Installed Capacity |                     |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|          |   |               |   | (MW)               |                     |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| Colmito  |   | 2008               |   |               | 58                       |   |   |   | 8 |   |   |   | 99 |   |   |   | 27 |   |   |   | 99 |   |   |   | 6 |   |   |   | 95 |   |

|          |   |               |   | **As of**          |   |   | Years Ended December 31, |   |
|---------------|--------|--------------------|--------|--------------------|--------|--------|--------------------------|--------|
|          |   |          |   | December 31, 2016  |   |   | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant         |   | Year of Commission |   | Installed Capacity |   |   | Gross Energy Generated   |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|          |   |               |   | (MW)               |   |   | (GWh)                    |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| CEPP I   |   | 1990               |   |               | 16     |   |                     |   | 54 |   |   |   | 75 |   |   |   | 67 |   |   |   | 34 |   |   |   | 51 |   |   |   | 34 |   |
| CEPP II  |   | 1994               |   |               | 51     |   |                     |   | 210 |   |   |   | 79 |   |   |   | 231 |   |   |   | 42 |   |   |   | 191 |   |   |   | 42 |   |
| Total    |   |               |   |               | 67     |   |                     |   | 264 |   |   |   |   |   |   |   | 298 |   |   |   |   |   |   |   | 242 |   |   |   |   |   |

----

|   |   |               |   | As of              |   |   | Years Ended December 31, |   |
|--------|--------|--------------------|--------|--------------------|--------|--------|--------------------------|--------|
|   |   |               |   | December 31, 2016  |   |   | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant  |   | Year of Commission |   | Installed Capacity |   |   | Gross Energy Generated   |   |   | Availability Factor |   |   | Gross EnergyGenerated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|   |   |               |   | (MW)               |   |   | (GWh)                    |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| JPPC   |   | 1998               |   |               | 60     |   |                     |   | 408 |   |   |   | 85 |   |   |   | 445 |   |   |   | 86 |   |   |   | 425 |   |   |   | 85 |   |

|              |   |               |   |   | **As of**          |   |   | Years Ended December 31, |   |
|-------------------|--------|--------------------|--------|--------|--------------------|--------|--------|--------------------------|--------|
|              |   |               |   |   | December 31, 2016  |   |   | 2016                     |   |   | 2015 |   |   | 2014 |   |
| Plant             |   | Year of Commission |   |   | Installed Capacity |   |   | Gross Energy Generated   |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |   | Gross Energy Generated |   |   | Availability Factor |   |
|              |   |               |   |   | (MW)               |   |   | (GWh)                    |   |   | (%) |   |   | (GWh) |   |   | (%) |   |   | (GWh) |   |   | (%) |   |
| La Hocha          |   | 2011               |   |   |               | 2      |   |                     |   | 1 |   |   |   | 25 |   |   |   | 10 |   |   |   | 84 |   |   |   | 47 |   |   |   | 98 |   |
| Purificación |   | 2014               |   |   |               | 10     |   |                     |   | 2 |   |   |   | 3.8 |   |   |   | 19 |   |   |   | 100 |   |   |   | 1 |   |   |   | 1 | 1  |
| Entrerios         |   | 2015               |   |   |               | 3      |   |                     |   | 15 |   |   |   | 98 |   |   |   | 12 |   |   |   | 98 |   |   |   | — |   |   |   | — |   |
| Geopark           |   | 2015-2016          |   |   |               | 16     |   |                     |   | 56 |   |   |   | 99 |   |   |   | 2 |   |   |   | 100 |   |   |   | — |   |   |   | — |   |
|              |   |               |   |   |               | 31     |   |                     |   | 74 |   |   |   |   |   |   |   | 43 |   |   |   |   |   |   |   | 48 |   |   |   |   |   |

| 1. | As a result of gas unavailability during December 2014. |
|----|---------------------------------------------------------|

----

|  | · | Energuate, the trade name for IC Power’s Guatemalan electricity distribution businesses, which consists of: |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | DEORSA, in which IC Power holds a 93% interest; the remaining 7% interest is held by private minority shareholders; and |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | · | DEOCSA, in which IC Power holds a 91% interest; the remaining 9% interest is held by private minority shareholders. |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | · | Residential (some of whom receive subsidies for their purchase of electricity); |
|--|--------|---------------------------------------------------------------------------------|

|  | · | Commercial (small- to medium-sized enterprises, such as local hospitals, gas stations, irrigation pumps and small-sized agricultural facilities); |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Industrial (large-sized enterprises, such as hotel and resort complexes, commercial malls and large-scale agricultural facilities); and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Other (which includes certain government entities, such as municipalities). |
|--|--------|-----------------------------------------------------------------------------|

|                         |   |                    |      |   |   |   |      |   |   |
|------------------------------|--------|-------------------------|-----------|--------|--------|--------|-----------|--------|--------|
|                         |   | Year Ended December 31, |      |
|                         |   | 2016                    |      |   | 2015   |   |      | 2014   |   |
| Energy purchased (GWh)  |   |                    | 2,882     |   |   |   | 2,785     |   |   |   | 2,631 |   |
| Total electricity losses (%) |   |                    | 19.6      | %      |   |   | 16.9      | %      |   |   | 17.0 | % |
| Energy distributed (GWh)     |   |                    | 2,316     |   |   |   | 2,315     |   |   |   | 2,184 |   |
| To regulated customers       |   |                    | 2,216     |   |   |   | 2,159     |   |   |   | 2,011 |   |
| Residential                  |   |                    | 1,663     |   |   |   | 1,612     |   |   |   | 1,499 |   |
| Commercial                   |   |                    | 253       |   |   |   | 246       |   |   |   | 234 |   |
| Industrial                   |   |                    | 37        |   |   |   | 35        |   |   |   | 27 |   |
| Other customers              |   |                    | 262       |   |   |   | 266       |   |   |   | 251 |   |
| To unregulated customers1    |   |                    | 101       |   |   |   | 157       |   |   |   | 174 |   |
| Number of customers          |   |                    | 1,679,446 |   |   |   | 1,634,773 |   |   |   | 1,579,725 |   |
| Regulated customers          |   |                    | 1,679,331 |   |   |   | 1,634,616 |   |   |   | 1,579,555 |   |
| Residential                  |   |                    | 1,674,916 |   |   |   | 1,630,204 |   |   |   | 1,575,204 |   |
| Commercial                   |   |                    | 4,036     |   |   |   | 4,037     |   |   |   | 3,991 |   |
| Industrial                   |   |                    | 81        |   |   |   | 79        |   |   |   | 65 |   |
| Other customers              |   |                    | 298       |   |   |   | 296       |   |   |   | 295 |   |
| Unregulated customers1       |   |                    | 115       |   |   |   | 157       |   |   |   | 170 |   |

| 1. | Unregulated customers consist of end users with a demand exceeding 100 kW, consisting principally of industrial and commercial customers. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a social tariff available to customers with a demand of up to 300 kWh per month; |
|--|--------|----------------------------------------------------------------------------------|

|  | · | a regular tariff, available to all customers that purchase electricity at low voltage; |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | a low voltage peak tariff available to customers that purchase energy and capacity at low voltage (less than 1,000 volts), with a demand capacity between 11 kW and 100 kW, for no less than 60% of the month, who are primarily commercial and industrial customers; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a low voltage off-peak tariff available to customers that purchase energy and capacity at low voltage (less than 1,000 volts), with a demand capacity between 11 kW and 100 kW, for less than 60% of the month, who are primarily commercial and industrial customers; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a medium voltage peak tariff available to customers that purchase energy and capacity at medium voltage (greater than 1,000 volts and equal to or less than 60,000 volts), with a demand capacity between 11 kW and 100 kW, for no less than 60% of the month, who are primarily commercial and industrial customers; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a medium tension off-peak tariff available to customers that purchase energy and capacity at medium voltage (greater than 1,000 volts and equal to or less than 60,000 volts), with a demand capacity between 11 kW and 100 kW, for less than 60% of the month, who are primarily commercial and industrial customers; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a tariff available to municipalities that purchase electricity for public lighting. |
|--|--------|-------------------------------------------------------------------------------------|

|                                 |   |                    |   |   |   |   |   |   |   |
|--------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                 |   | Year ended December 31, |   |
|                                 |   | 2016                    |   |   | 2015   |   |   | 2014   |   |
|                                 |   | (GWh)                   |   |
| Tariff                               |   |                    |   |   |   |   |   |   |   |
| Social tariff                   |   |                    | 1,205  |   |   |   | 1,175  |   |   |   | 1,102 |   |
| Regular tariff                  |   |                    | 459    |   |   |   | 437    |   |   |   | 397 |   |
| Low voltage peak tariff         |   |                    | 108    |   |   |   | 100    |   |   |   | 74 |   |
| Low voltage off-peak tariff     |   |                    | 145    |   |   |   | 147    |   |   |   | 160 |   |
| Medium voltage peak tariff      |   |                    | 18     |   |   |   | 14     |   |   |   | 2 |   |
| Medium voltage off-peak tariff  |   |                    | 19     |   |   |   | 20     |   |   |   | 25 |   |
| Public lighting tariff          |   |                    | 262    |   |   |   | 266    |   |   |   | 250 |   |
| Energy distributed              |   |                    | 2,216  |   |   |   | 2,159  |   |   |   | 2,011 |   |

|  | · | an electricity charge, updated quarterly and designed to reimburse the distribution company for the cost of electricity and capacity that it purchases and transmission tolls to the interconnection point with Energuate’s grid. The electricity charge consists of a base tariff and an electricity adjustment surcharge. Under the General Electricity Law and the regulations of the CNEE, the base tariff is adjusted annually each year on May 1 to reflect anticipated changes in the cost of electricity to be purchased by Energuate during the following year. The electricity adjustment surcharge is adjusted quarterly to reflect variations in the actual cost of electricity purchased by Energuate against the projected cost; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a VAD charge designed to permit a model efficient distribution company to cover its operating expenses, complete its capital expenditure plans and recover its cost of capital. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   |                         |   |                                        |
|----------------------------------------------|--------|------------------------------|--------|---------------------------------------------|
| Supplier                                     |   | Contracted Capacity(MW) |   | Expiration Date                             |
| Jaguar Energy Guatemala LLC             |   | 200                          |   | April 2030                             |
| INDE                                    |   | 162                          |   | April 2017 –April 2032 |
| Energía del Caribe                 |   | 60                           |   | April 2030                                  |
| Renace, S.A.                            |   | 55                           |   | April 2030 –April 2033 |
| Eólico San Antonio El Sitio, S.A.  |   | 50                           |   | April 2030 –April 2032 |

----

|  | · | 24-hour emergency services, including call center, fault response, building security and personal security services; |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | · | building new connections and installations; |
|--|--------|---------------------------------------------|

|  | · | providing connection and disconnection services; and |
|--|--------|------------------------------------------------------|

|  | · | maintaining and repairing installations and equipment, including substations, transformers and meeting stations. |
|--|--------|------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|                                                                                                                          |                                                                                                                               |               |                |                 |   |
|-------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------------------|----------------------|--------|
|                                                                                                                          |                                                                                                                               |               |                |                 |
|                                                                                                                          | Principal Customer                                                                                                                 | Commencement       | Expiration          | Contracted Capacity1 |
| Peru Segment                                                                                                             |                                                                                                                               |               |                |                 |
| Kallpa                                                                                                                        | Enel Distribución Perú S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Edecañete S.A.A.,Electosureste S.A., Seal S.A.2 | January 2014  | December 2021  | 350                  |
| Enel Distribución Perú S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Electosureste S.A., Seal S.A., Electrosur S.A.3 | January 2014                                                                                                                       | December 2023      | 210                 |
| Sociedad Minera Cerro Verde S.A.A.                                                                                            | January 2011                                                                                                                       | December 2020      | 132                 |
| Compañía Minera Antapaccay S.A.                                                                                     | November 2011                                                                                                                 | December 2025      | 100                 |
| Southern Perú Copper Corporation                                                                                         | April 2017                                                                                                                         | April 2027         | 120                 |
| Southern Perú Copper Corporation (Toquepala)                                                                             | May 2017                                                                                                                           | May 2029           | 70-854              |
| Inretail Properties Management S.R.L.                                                                                         | September 2016                                                                                                                     | December 2021      | 93                  |
| CDA                                                                                                                           | Electroperú S.A.                                                                                                              | August 2016   | December 2030       | 200                  |
| Luz del Sur S.A.A.5                                                                                                           | January 2018                                                                                                                       | December 2027      | 169                 |
| Enel Distribución Perú S.A.A.                                                                                       | January 2022                                                                                                                       | December 2031 | 30                  |
| Edecañete                                                                                                                | January 2018                                                                                                                       | December 2027      | 3                   |
| Luz del Sur S.A.A.                                                                                                            | January 2022                                                                                                                       | December 2031      | 65                  |
| Enel Distribución Perú S.A.A.                                                                                       | January 2022                                                                                                                       | December 2031      | 16                  |
| Samay I                                                                                                                       | Peruvian Investment Promotion Agency (Pro Inversión)                                                                          | May 2016           | April 2036     | 600                  |
| Israel Segment                                                                                                                |                                                                                                                               |               |                |                 |
| OPC-Rotem                                                                                                                     | PPA with Israel Electric Corporation6                                                                                              | July 2013          | June 2032           | 447                  |
| OPC-Hadera                                                                                                                    | Hadera Paper                                                                                                                       | August 2015        | September 2036 | 12-517               |
| Hebrew University                                                                                                             | January 2019                                                                                                                       | December 2028      | 22                  |
| Migdal                                                                                                                        | January 2019                                                                                                                       | December 2028      | 37                  |
| Alrov Group                                                                                                                   | January 2019                                                                                                                       | December 2028      | 9                   |
| Central AmericaSegment                                                                                                   |                                                                                                                               |               |                |                 |
| Corinto                                                                                                                       | Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A.                                           | June 1999          | December 2018       | 50                   |
| Tipitapa Power                                                                                                                | Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A.                                           |  April 1999   |  December 2018 |  51             |
| Amayo I and Amayo II                                                                                      | Distribuidora de Electricidad del Norte S.A.,                                                                                      | March 2009         | March 2024          | 40                   |
| Distribuidora de Electricidad del Sur S.A.,                                                                                   | March 2010                                                                                                                         | March 2025         | 23                  |
| Nejapa                                                                                                                   | Seven distribution companies                                                                                                       | August 2013        | January 2018        | 71                   |
| Seven distribution companies                                                                                                  | August 2013                                                                                                                        | July 2017          | 39                  |
| Seven distribution companies                                                                                                  | January 2015                                                                                                                       | December 2017      | 30                  |
| Puerto Quetzal                                                                                                                | Comegsa                                                                                                                            | January 2013       | April 2017          | 30                   |
| MEL                                                                                                                           | August 2014                                                                                                                        | December 2017      | 15                  |
| Ingenio La Unión                                                                                                         | May 2015                                                                                                                           | April 2017         | 13                  |
| Cenérgica                                                                                                                | August 2015                                                                                                                        | January 2017       | 30                  |
| CAES                                                                                                                          | August 2014                                                                                                                        | December 2017      | 15                  |
| DEOCSA                                                                                                                        | May 2016                                                                                                                           | April 2017         | 13                  |
| Kanan                                                                                                                         | Empresa de Distribución Eléctrica Chiriqui (EDECHI)                                                                      | December 2015      | December 2020       | 7                    |
| Empresa de Distribución Eléctrica Elektra Nor Este S.A. (ENSA)                                                      | December 2015                                                                                                                      | December 2020      | 34                  |
| Empresa de Distribución Eléctrica Metro Oeste S.A. (EDEMET)                                                         | December 2015                                                                                                                      | December 2020      | 45                  |
| Other Segment                                                                                                            |                                                                                                                               |               |                |                 |
| COBEE                                                                                                                         | Minera San Cristóbal                                                                                                          | December 2008      | October 2017        | 43                   |
| Colmito                                                                                                                       | ENAP Refinerías S.A.                                                                                                          | January 2014       | December 2017       | 38                   |
| JPPC                                                                                                                          | Jamaica Public Services Company                                                                                                    | January 1998       | January 2018        | 60                   |
| Surpetroil                                                                                                                    | PETROSUD                                                                                                                           | March 2015         | June 2018           | 2                    |
| GEOPARK                                                                                                                       | November 2015                                                                                                                      | June 2017          | 9                   |

| 1. | Where a range is presented, contracted capacity varies monthly for the duration of the PPA. |
|----|---------------------------------------------------------------------------------------------|

| 2. | Kallpa executed 14 PPAs, two PPAs with each of the following seven entities: (i) Enel Distribución Perú S.A.A., (ii) Luz del Sur S.A.A., (iii) Edecañete S.A., (iv) Electrosur S.A., (v) Electro Sur Este S.A.A., (vi) Sociedad Eléctrica del Sur Oeste S.A. and (vii) Electro Puno S.A.A. Each of Electrosur S.A. and Electro Puno S.A.A. assigned their PPAs to Hidrandina S.A. in August 2012 and in October 2012, respectively. The 350 MW capacity represents the aggregate contracted capacity among these 14 PPAs. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3. | Kallpa executed 12 PPAs, two PPAs with each of the following six entities: (i) Enel Distribución Perú S.A.A., (ii) Luz del Sur S.A.A., (iii) Electrosur S.A., (iv) Electro Sur Este S.A.A., (v) Electro Puno S.A.A. and (vi) Sociedad Eléctrica del Sur Oeste S.A. Electro Puno S.A.A. assigned its PPAs to Hidrandina S.A. in October 2012. The 210 MW capacity represents the aggregate contracted capacity among these 12 PPAs. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Contracted capacity will be determined during the first six months of supply after the client begins operations. Minimum of 70 MW and maximum of 85 MW. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Represents capacity under three separate PPAs. |
|----|------------------------------------------------|

| 6. | The terms of the IEC PPA provide OPC-Rotem with the option to allocate and sell the generated electricity of the power station directly to end users. OPC-Rotem has exercised this option and sold all of its energy and capacity directly to 28 end users as of December 31, 2016, who primarily consist of Israeli industrial companies, such as Granit Group. OPC-Rotem has entered into PPAs with end users which cover a range of 4 MW to 107 MW of capacity, with each PPA covering, on average, 23 MW of capacity. As of December 31, 2016, the weighted average remaining life of OPC-Rotem’s PPAs with end users based on firm capacity is approximately six years. For further information on the IEC PPA, see “—Regulatory, Environmental and Compliance Matters—Regulation of the Israeli Electricity Sector.” |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | The contracted capacity of the PPA with Hadera Paper will increase to 40 MW upon the completion of the OPC-Hadera project, which is expected to commence commercial operations in early 2019. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   |      |   |          |
|---------------------------------------------------|--------|-----------|--------|---------------|
| Periods                                           |   | Firm      |   | Interruptible |
| Initial Date of Dispatch up to pipeline expansion |   | 3,474,861 |   | 1,329,593     |
| April 22, 2016 - March 20, 2020                   |   | 4,854,312 |   | 764,463       |
| March 20, 2020 - January 1, 2021                  |   | 4,655,000 |   | 764,463       |
| January 2, 2021 - March 31, 2030                  |   | 4,655,000 |   | 530,000       |
| April 1, 2030 - March 31, 2033                    |   | 3,883,831 |   | 1,301,169     |
| April 1, 2033 - December 31, 2033                 |   | 2,948,831 |   | 1,301,169     |

----

|                                                            |   |                            |   |   |            |   |   |   |   |   |            |   |   |   |   |   |            |   |
|-----------------------------------------------------------------|--------|---------------------------------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|
|                                                            |   | Gross Energy Generation         |   |
|                                                            |   | For the Year Ended December 31, |   |
|                                                            |   | 2016                            |   |   | 2015            |   |   | 2014   |   |
| Company                                                         |   | (GWh)                           |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |
| IC Power (Kallpa, Samay I and CDA)                         |   |                            | 6,811  |   |            |   | 14.09  |   |   |   | 5,166           |   |   |   | 11.60  |   |            |   | 5,920 |   |   |   | 14.17 |   |
| Enel Generación Perú S.A.A.1                     |   |                            | 8,832  |   |            |   | 18.28  |   |   |   | 8,370           |   |   |   | 18.79  |   |            |   | 8,848 |   |   |   | 21.17 |   |
| Engie Energía Perú S.A. (formerly EnerSur S.A.)  |   |                            | 8,182  |   |            |   | 16.93  |   |   |   | 7,172           |   |   |   | 16.10  |   |            |   | 7,098 |   |   |   | 16.98 |   |
| Electroperú S.A. (a state-owned generation company)   |   |                            | 6,644  |   |            |   | 13.75  |   |   |   | 7,172           |   |   |   | 16.10  |   |            |   | 7,041 |   |   |   | 16.85 |   |
| Orazul Energy Egenor2                                      |   |                            | 2,423  |   |            |   | 5.01   |   |   |   | 2,648           |   |   |   | 5.95   |   |            |   | 2,534 |   |   |   | 6.06 |   |
| Other generation companies                                 |   |                            | 15,434 |   |            |   | 31.94  |   |   |   | 14,012          |   |   |   | 31.46  |   |            |   | 10,351 |   |   |   | 24.77 |   |
| Total                                                      |   |                            | 48,326 |   |            |   | 100    |   |   |   | 44,540          |   |   |   | 100.0  |   |            |   | 41,792 |   |   |   | 100.0 |   |
|                                                            |   |                            |   |   |            |   |   |   |   |   |            |   |   |   |   |   |            |   |   |   |   |   |   |   |

| 1. | Includes Enel Generación Perú and Chinango S.A.C. |
|----|-------------------------------------------------------------|

| 2. | Includes Egenor and Termoselva S.R.L. |
|----|---------------------------------------|

----

|                                                   |   |                            |   |   |            |   |   |   |   |   |            |   |   |   |   |   |            |   |
|--------------------------------------------------------|--------|---------------------------------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|
|                                                   |   | Gross Energy Generation         |   |
|                                                   |   | For the Year Ended December 31, |   |
|                                                   |   | 2016                            |   |   | 2015            |   |   | 2014   |   |
| Company                                                |   | (GWh)                           |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |
| ICPNH                                             |   |                            | 978    |   |            |   | 21.39  |   |   |   | 1,095           |   |   |   | 24.88  |   |            |   | 1,099 |   |   |   | 26.71 |   |
| ALBA de Nicaragua, S.A. (ALBANISA)                |   |                            | 837    |   |            |   | 18.31  |   |   |   | 886             |   |   |   | 20.13  |   |            |   | 745 |   |   |   | 18.11 |   |
| PENSA Proyecto Eléctrico de Nicaragua, S.A.  |   |                            | 476    |   |            |   | 10.42  |   |   |   | 451             |   |   |   | 10.24  |   |            |   | 430 |   |   |   | 10.45 |   |
| Enel SpA                                          |   |                            | 385    |   |            |   | 8.43   |   |   |   | 283             |   |   |   | 6.42   |   |            |   | 354 |   |   |   | 8.60 |   |
| Generadora de Occidente, Ltda.                    |   |                            | 372    |   |            |   | 8.14   |   |   |   | 370             |   |   |   | 8.42   |   |            |   | 266 |   |   |   | 6.47 |   |
| Other generation companies                        |   |                            | 1,522  |   |            |   | 33.31  |   |   |   | 1,316           |   |   |   | 29.91  |   |            |   | 1,220 |   |   |   | 29.65 |   |
| Total                                             |   |                            | 4,574  |   |            |   | 100.0  |   |   |   | 4,401           |   |   |   | 100.0  |   |            |   | 4,114 |   |   |   | 100.0 |   |

|                                                       |   |                            |   |   |            |   |   |   |   |   |            |   |   |   |   |   |            |   |
|------------------------------------------------------------|--------|---------------------------------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|
|                                                       |   | Gross Energy Generation         |   |
|                                                       |   | For the Year Ended December 31, |   |
|                                                       |   | 2016                            |   |   | 2015            |   |   | 2014   |   |
| Company                                                    |   | (GWh)                           |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |
| Puerto Quetzal                                        |   |                            | 364    |   |            |   | 3.35   |   |   |   | 673             |   |   |   | 6.53   |   |            |   | 490 |   |   |   | 4.67 |   |
| El Instituto Nacional de Electrificación (INDE)  |   |                            | 1,537  |   |            |   | 14.13  |   |   |   | 1,969           |   |   |   | 19.11  |   |            |   | 3,159 |   |   |   | 30.09 |   |
| Energías San José, S. A.                    |   |                            | 1,163  |   |            |   | 10.69  |   |   |   | 1,045           |   |   |   | 10.14  |   |            |   | 970 |   |   |   | 9.24 |   |
| Orazul Energy Guatemala y Cia S.C.A.                  |   |                            | 696    |   |            |   | 6.40   |   |   |   | 675             |   |   |   | 6.55   |   |            |   | 872 |   |   |   | 8.31 |   |
| Other generation companies                            |   |                            | 7,131  |   |            |   | 65.55  |   |   |   | 5,940           |   |   |   | 57.66  |   |            |   | 5,007 |   |   |   | 47.69 |   |
| Total                                                 |   |                            | 10,891 |   |            |   | 100.0  |   |   |   | 10,302          |   |   |   | 100.0  |   |            |   | 10,498 |   |   |   | 100.0 |   |

----

|                                                                 |   |                            |   |   |            |   |   |   |   |   |            |   |   |   |   |   |            |   |
|----------------------------------------------------------------------|--------|---------------------------------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|--------|--------|--------|--------|-----------------|--------|
|                                                                 |   | Gross Energy Generation         |   |
|                                                                 |   | For the Year Ended December 31, |   |
|                                                                 |   | 2016                            |   |   | 2015            |   |   | 2014   |   |
| Company                                                              |   | (GWh)                           |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |   | (GWh)  |   |   | MarketShare (%) |   |
| Nejapa                                                          |   |                            | 387    |   |            |   | 7.07   |   |   |   | 440             |   |   |   | 7.97   |   |            |   | 376 |   |   |   | 6.08 |   |
| Comisión Ejecutiva Hidroeléctrica del Río Lempa  |   |                            | 1,258  |   |            |   | 22.94  |   |   |   | 1,349           |   |   |   | 24.43  |   |            |   | 1,718 |   |   |   | 27.76 |   |
| LaGeo S.A. de C.V.                                              |   |                            | 1,467  |   |            |   | 26.77  |   |   |   | 1,432           |   |   |   | 25.93  |   |            |   | 1,558 |   |   |   | 25.17 |   |
| Orazul Energy                                                   |   |                            | 1,002  |   |            |   | 18.29  |   |   |   | 853             |   |   |   | 15.43  |   |            |   | 821 |   |   |   | 13.26 |   |
| Inversiones Energéticas, S.A. de C.V.                      |   |                            | 440    |   |            |   | 8.03   |   |   |   | 491             |   |   |   | 8.89   |   |            |   | 574 |   |   |   | 9.27 |   |
| Termopuerto, S.A. de C.V.                                       |   |                            | 463    |   |            |   | 8.45   |   |   |   | 493             |   |   |   | 8.93   |   |            |   | 476 |   |   |   | 7.69 |   |
| Other generation companies                                      |   |                            | 464    |   |            |   | 8.45   |   |   |   | 465             |   |   |   | 8.42   |   |            |   | 667 |   |   |   | 10.77 |   |
| Total                                                           |   |                            | 5,481  |   |            |   | 100.0  |   |   |   | 5,523           |   |   |   | 100.0  |   |            |   | 6,190 |   |   |   | 100.0 |   |

|                                |   | Gross Energy Generation         |   |
|-------------------------------------|--------|---------------------------------|--------|
|                                |   | For the Year Ended December 31, |   |
|                                |   | 2016                            |   |   | 2015 |   |   | 2014 |   |
| Company                             |   | (GWh)                           |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |
| IC Power (Kanan and Pedregal)  |   |                            | 433    |   |   |   | 4.06 |   |   |   | 356 |   |   |   | 3.31 |   |   |   | 405 |   |   |   | 4.40 |   |
| ACP                            |   |                            | 723    |   |   |   | 6.77 |   |   |   | 828 |   |   |   | 7.70 |   |   |   | 1,029 |   |   |   | 11.18 |   |
| AES Panamá, S.R.L.        |   |                            | 2,777  |   |   |   | 26.02 |   |   |   | 2,497 |   |   |   | 23.22 |   |   |   | 1,993 |   |   |   | 21.66 |   |
| Celsia SA ESP                  |   |                            | 1,477  |   |   |   | 13.84 |   |   |   | 1,444 |   |   |   | 13.43 |   |   |   | 1,565 |   |   |   | 17.00 |   |
| Enel Fortuna, S.A.             |   |                            | 1,353  |   |   |   | 12.68 |   |   |   | 1,658 |   |   |   | 15.42 |   |   |   | 1,130 |   |   |   | 12.28 |   |
| Other hydros                   |   |                            | 2,223  |   |   |   | 20.83 |   |   |   | 1,777 |   |   |   | 16.53 |   |   |   | 1,473 |   |   |   | 16.00 |   |
| Other thermal                  |   |                            | 971    |   |   |   | 9.10 |   |   |   | 1,047 |   |   |   | 9.74 |   |   |   | 1,311 |   |   |   | 14.25 |   |
| Solar & wind               |   |                            | 688    |   |   |   | 6.44 |   |   |   | 428 |   |   |   | 3.97 |   |   |   | 189 |   |   |   | 2.05 |   |
| EOR                            |   |                            | 28     |   |   |   | 0.26 |   |   |   | 17 |   |   |   | 0.16 |   |   |   | 108 |   |   |   | 1.17 |   |
| Total                          |   |                            | 10,673 |   |   |   | 100.0 |   |   |   | 10,052 |   |   |   | 100.0 |   |   |   | 9,203 |   |   |   | 100.0 |   |

|                             |   | Gross Energy Generation         |   |
|----------------------------------|--------|---------------------------------|--------|
|                             |   | For the Year Ended December 31, |   |
|                             |   | 2016                            |   |   | 2015 |   |   | 2014 |   |
| Company                          |   | (GWh)                           |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |
| COBEE                       |   |                            | 889    |   |   |   | 10.1 |   |   |   | 1,081 |   |   |   | 12.97 |   |   |   | 1,086 |   |   |   | 13.86 |   |
| Guaracachi                  |   |                            | 1,721  |   |   |   | 19.6 |   |   |   | 1,999 |   |   |   | 23.98 |   |   |   | 2,078 |   |   |   | 26.52 |   |
| Valle Hermoso               |   |                            | 1,787  |   |   |   | 13.5 |   |   |   | 1,070 |   |   |   | 12.84 |   |   |   | 1,457 |   |   |   | 18.59 |   |
| Corani                      |   |                            | 580    |   |   |   | 6.6 |   |   |   | 938 |   |   |   | 11.25 |   |   |   | 923 |   |   |   | 11.78 |   |
| Other generation companies  |   |                            | 4,382  |   |   |   | 50.0 |   |   |   | 3,247 |   |   |   | 38.96 |   |   |   | 2,292 |   |   |   | 29.25 |   |
| Total                       |   |                            | 9,359  |   |   |   | 100.0 |   |   |   | 8,335 |   |   |   | 100.0 |   |   |   | 7,836 |   |   |   | 100.0 |   |

----

|                                          |   | Gross Energy Generation         |   |
|-----------------------------------------------|--------|---------------------------------|--------|
|                                          |   | For the Year Ended December 31, |   |
|                                          |   | 2016                            |   |   | 2015 |   |   | 2014 |   |
| Company                                       |   | (GWh)                           |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |
| IC Power (Colmito and Central Cardones)  |   |                            | 8      |   |   |   | 0.02 |   |   |   | 31 |   |   |   | 0.06 |   |   |   | 6 |   |   |   | 0.01 |   |
| Endesa S.A.                              |   |                            | 13,460 |   |   |   | 24.97 |   |   |   | 11,759 |   |   |   | 22.23 |   |   |   | 12,312 |   |   |   | 23.58 |   |
| Colbún S.A.                         |   |                            | 10,141 |   |   |   | 18.81 |   |   |   | 11,805 |   |   |   | 22.32 |   |   |   | 12,170 |   |   |   | 23.31 |   |
| AES Gener S.A.                           |   |                            | 5,774  |   |   |   | 10.71 |   |   |   | 5,047 |   |   |   | 9.54 |   |   |   | 5,296 |   |   |   | 10.14 |   |
| Empresa Eléctrica Guacolda S.A.     |   |                            | 4,775  |   |   |   | 8.86 |   |   |   | 4,548 |   |   |   | 8.60 |   |   |   | 4,889 |   |   |   | 9.36 |   |
| Empresa Eléctrica Pehuenche S.A.    |   |                            | 2.365  |   |   |   | 4.39 |   |   |   | 2,980 |   |   |   | 5.63 |   |   |   | 3,006 |   |   |   | 5.76 |   |
| Other generation companies               |   |                            | 17,382 |   |   |   | 32.24 |   |   |   | 16,731 |   |   |   | 31.63 |   |   |   | 14,531 |   |   |   | 27.83 |   |
| Total                                    |   |                            | 53,905 |   |   |   | 100.0 |   |   |   | 52,901 |   |   |   | 100.0 |   |   |   | 52,210 |   |   |   | 100.0 |   |

|                                                                  |   | Gross Energy Generation         |   |
|-----------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                  |   | For the Year Ended December 31, |   |
|                                                                  |   | 2016                            |   |   | 2015 |   |   | 2014 |   |
| Company                                                               |   | (GWh)                           |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |
| CEPP                                                             |   |                            | 264    |   |   |   | 1.71 |   |   |   | 298 |   |   |   | 1.99 |   |   |   | 242 |   |   |   | 1.80 |   |
| Affiliates of AES Corp.                                          |   |                            | 5,727  |   |   |   | 37.12 |   |   |   | 5,311 |   |   |   | 35.48 |   |   |   | 5,443 |   |   |   | 40.40 |   |
| Empresa de Generación Hidroeléctrica Dominicana        |   |                            | 1,545  |   |   |   | 10.01 |   |   |   | 2,688 |   |   |   | 17.96 |   |   |   | 1,260 |   |   |   | 9.35 |   |
| Empresa Generadora de Electricidad Haina, S.A.                   |   |                            | 2,766  |   |   |   | 17.92 |   |   |   | 1,006 |   |   |   | 6.72 |   |   |   | 2,731 |   |   |   | 20.27 |   |
| Compañía de Electricidad de San Pedro de Macorís  |   |                            | 1,116  |   |   |   | 7.23 |   |   |   | 934 |   |   |   | 6.23 |   |   |   | 113 |   |   |   | 0.84 |   |
| Gas Natural SDG, S.A. (Gas Natural Fenosa)                       |   |                            | 989    |   |   |   | 6.41 |   |   |   | 1,012 |   |   |   | 6.76 |   |   |   | 919 |   |   |   | 6.82 |   |
| Transcontinental Capital Corp. (Bermuda) Ltd (Seaboard)               |   |                            | 888    |   |   |   | 5.76 |   |   |   | 842 |   |   |   | 5.62 |   |   |   | 1,006 |   |   |   | 7.47 |   |
| Consorcio Laesa Ltd                                              |   |                            | 583    |   |   |   | 3.78 |   |   |   | 612 |   |   |   | 4.09 |   |   |   | 471 |   |   |   | 3.50 |   |
| Other generation companies                                       |   |                            | 1,552  |   |   |   | 10.06 |   |   |   | 2,287 |   |   |   | 15.28 |   |   |   | 1,285 |   |   |   | 9.54 |   |
| Total                                                            |   |                            | 15,430 |   |   |   | 100.0 |   |   |   | 14,990 |   |   |   | 100.0 |   |   |   | 13,470 |   |   |   | 100.0 |   |

----

|                                                                 |   | Gross Energy Generation         |   |
|----------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                 |   | For the Year Ended December 31, |   |
|                                                                 |   | 2016                            |   |   | 2015 |   |   | 2014 |   |
| Company                                                              |   | (GWh)                           |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |   | (GWh) |   |   | Market Share (%) |   |
| Surpetroil1                                                     |   |                            | 2      |   |   |   | — |   |   |   | 43 |   |   |   | 0.06 |   |   |   | 23 |   |   |   | 0.04 |   |
| Empresas Públicas de Medellín E.S.P                   |   |                            | 13,409 |   |   |   | 20.33 |   |   |   | 13,994 |   |   |   | 21.03 |   |   |   | 13,626 |   |   |   | 21.18 |   |
| Emgesa E.SP                                                     |   |                            | 15,005 |   |   |   | 22.75 |   |   |   | 13,749 |   |   |   | 20.66 |   |   |   | 13,691 |   |   |   | 21.28 |   |
| Isagen S.A. E.SP                                                |   |                            | 11,392 |   |   |   | 17.28 |   |   |   | 12,821 |   |   |   | 19.27 |   |   |   | 10,609 |   |   |   | 16.49 |   |
| Generadora y Comercializadora de Energía del Caribe S.A. E.S.P. |   |                            | 3,181  |   |   |   | 4.83 |   |   |   | 6,972 |   |   |   | 10.48 |   |   |   | 7,508 |   |   |   | 11.67 |   |
| Other generation companies                                      |   |                            | 22,953 |   |   |   | 34.81 |   |   |   | 18,970 |   |   |   | 28.51 |   |   |   | 18,871 |   |   |   | 29.34 |   |
| Total                                                           |   |                            | 65,942 |   |   |   | 100.0 |   |   |   | 66,549 |   |   |   | 100.0 |   |   |   | 64,328 |   |   |   | 100.0 |   |

| 1. | Reflects energy sales in the Colombian interconnected system. |
|----|---------------------------------------------------------------|

|                           |   |                            |   |                    |   |                                                             |
|--------------------------------|--------|---------------------------------|--------|-------------------------|--------|------------------------------------------------------------------|
| Company/Plant                  |   | Location                        |   | Installed Capacity |   | Fuel Type                                                        |
|                           |   |                            |   | (MW)                    |   |                                                             |
| Operating Companies            |
| Peru Segment                   |   |                            |   |                    |   |                                                             |
| Kallpa:                        |   |                            |   |                    |   |                                                             |
| Kallpa I, II, III and IV  |   | Chilca district, Peru |   | 870                     |   | Natural gas (combined cycle)                           |
|                           |   |                            |   |                    |   |                                                             |
| Las Flores                |   | Chilca district, Peru           |   | 193                     |   | Natural gas                                                      |
|                           |   |                            |   |                    |   |                                                             |
| Kallpa Total                   |   |                            |   | 1,063                   |   |                                                             |
|                           |   |                            |   |                    |   |                                                             |
| Samay I                   |   | Mollendo, Peru                  |   | 632                     |   | Diesel and natural gas                                           |
| CDA                       |   | Huancavelica, Peru              |   | 545                     |   | Hydroelectric                                                    |
|                           |   |                            |   |                    |   |                                                             |
| Israel Segment                 |   |                            |   |                    |   |                                                             |
| OPC-Rotem                 |   | Mishor Rotem, Israel            |   | 440                     |   | Natural gas and diesel (combined cycle) |
| OPC-Hadera1               |   | Hadera, Israel                  |   | 18                      |   | Natural gas                                                      |

----

| Company/Plant |   | Location |   | Installed Capacity |   | Fuel Type |
|---------------|--------|----------|--------|-------------------------|--------|-----------|
|          |   |     |   | (MW)                    |   |

| Central America Segment  |   |                                            |   |   |   |                   |
|--------------------------|--------|-------------------------------------------------|--------|--------|--------|------------------------|
| ICPNH                    |   |                                            |   |   |   |                   |
| Corinto2            |   | Chinandega, Nicaragua                      |   | 71     |   | HFO                    |
| Tipitapa Power      |   | Managua, Nicaragua                              |   | 51     |   | HFO                    |
| Amayo I             |   | Rivas, Nicaragua                                |   | 40     |   | Wind                   |
| Amayo II3           |   | Rivas, Nicaragua                                |   | 23     |   | Wind                   |
|                     |   |                                            |   |   |   |                   |
| ICPNH Total         |   |                                            |   | 185    |   |                   |
|                     |   |                                            |   |   |   |                   |
| Puerto Quetzal      |   | Escuintla, Guatemala                            |   | 179    |   | HFO                    |
|                     |   |                                            |   |   |   |                   |
| Nejapa              |   | Nejapa, El Salvador                             |   | 140    |   | HFO                    |
|                     |   |                                            |   |   |   |                   |
| Kanan4              |   | Colon, Panama                                   |   | 92     |   | HFO                    |
| Other Segment            |   |                                            |   |   |   |                   |
| CEPP                |   | Puerto Plata, Dominican Republic |   | 67     |   | HFO                    |
|                     |   |                                            |   |   |   |                   |
| COBEE:                   |   |                                            |   |   |   |                   |
| Zongo Valley plants:     |   |                                            |   |   |   |                   |
| Zongo               |   | Zongo Valley, Bolivia                 |   | 11     |   | Hydroelectric          |
| Tiquimani           |   | Zongo Valley, Bolivia                           |   | 9      |   | Hydroelectric          |
| Botijlaca           |   | Zongo Valley, Bolivia                           |   | 7      |   | Hydroelectric          |
| Cutichucho          |   | Zongo Valley, Bolivia                           |   | 23     |   | Hydroelectric          |
| Santa Rosa          |   | Zongo Valley, Bolivia                           |   | 18     |   | Hydroelectric          |
| Sainani             |   | Zongo Valley, Bolivia                           |   | 10     |   | Hydroelectric          |
| Chururaqui          |   | Zongo Valley, Bolivia                           |   | 25     |   | Hydroelectric          |
| Harca               |   | Zongo Valley, Bolivia                           |   | 26     |   | Hydroelectric          |
| Cahua               |   | Zongo Valley, Bolivia                           |   | 28     |   | Hydroelectric          |
| Huaji               |   | Zongo Valley, Bolivia                           |   | 30     |   | Hydroelectric          |
|                     |   |                                            |   |   |   |                   |
|                     |   |                                            |   | 187    |   |                   |
|                     |   |                                            |   |   |   |                   |
| Miguillas Valley plants: |   |                                            |   |   |   |                   |
| Miguillas           |   | Miguillas Valley, Bolivia             |   | 4      |   | Hydroelectric          |
| Angostura           |   | Miguillas Valley, Bolivia                       |   | 6      |   | Hydroelectric          |
| Choquetanga         |   | Miguillas Valley, Bolivia                       |   | 6      |   | Hydroelectric          |
| Carabuco            |   | Miguillas Valley, Bolivia                       |   | 6      |   | Hydroelectric          |
|                     |   |                                            |   |   |   |                   |
|                     |   |                                            |   | 22     |   |                   |
|                     |   |                                            |   |   |   |                   |
| El Alto-Kenko       |   | La Paz, Bolivia                                 |   | 19     |   | Natural gas            |
|                     |   |                                            |   |   |   |                   |
| COBEE Total         |   |                                            |   | 228    |   |                   |
|                     |   |                                            |   |   |   |                   |
| Central Cardones    |   | Copiapó, Chile                             |   | 153    |   | Diesel                 |
|                     |   |                                            |   |   |   |                   |
| Colmito             |   | Concón, Chile                              |   | 58     |   | Natural gas and diesel |
|                     |   |                                            |   |   |   |                   |
| JPPC                |   | Kingston, Jamaica                               |   | 60     |   | HFO                    |
|                     |   |                                            |   |   |   |                   |
| Surpetroil               |   |                                            |   |   |   |                   |
| La Hocha            |   | Huila, Colombia                                 |   | 2      |   | Natural gas            |
| Purificación   |   | Tolima, Colombia                                |   | 10     |   | Natural gas            |
| Entrerios           |   | Casanare, Colombia                              |   | 3      |   | Natural gas            |
| Geopark             |   | Casanare, Colombia                              |   | 16     |   | Natural gas            |
|                     |   |                                            |   |   |   |                   |
| Surpetroil Total    |   |                                            |   | 31     |   |                   |
|                     |   |                                            |   |   |   |                   |

| 1. | OPC-Hadera also holds a conditional license for the construction of a cogeneration power station in Israel, based upon a plant with 140 MW of capacity. Construction commenced in June 2016 and COD is expected by early 2019. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | In March 2016, a unit of ICPNH’s barge-mounted power plant (Corinto) sustained damage in connection with a machinery breakdown. The relevant unit has an installed capacity of 18 MW, and represents 25% of all IC Power’s installed capacity at the Corinto plant. This event is covered by insurance. The relevant unit came back on-line in February 2017. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Wind farm complex sustained damage in December 2014 in connection with a blackout in the Nicaragua’s National Interconnection System, which left one wind turbine collapsed and another two wind turbines with severe damage. In early 2016, the three damaged turbines, which represented 10% of all of IC Power’s installed capacity at its Amayo I and Amayo II plants, were replaced and re-commenced commercial operations. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | In April 2017, Kanan experienced a fire, and as a result of the fire, both its 55 MW and 37 MW barges were placed off-line. For further information on the incident, see “Item 5. Operating and Financial Review and Prospects—Recent Developments—IC Power—Fire at Kanan Plant.” |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Cenérgica owns three fuel storage tanks on site with an aggregate capacity of 240,000 barrels and maintains a fuel depot and marine terminal located on a 6.5 hectare site that IC Power leases in Acajutla, El Salvador; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | IC Power was awarded a tender published by the Chilean government for a lease of land in Northern Chile, which is intended for the construction of a power station with a capacity of at least 350 MW; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | IC Power was awarded a tender published by the Israel Land Authority to lease an approximately 592,000 square foot plot adjacent to the OPC-Rotem site, which can be utilized to extend OPC-Rotem’s capacity in Israel. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                           |   | As of December 31, |   |
|------------------------------------------------|--------|--------------------|--------|
|                                           |   | 2016               |   |   | 20151 |   |   | 20141 |   |
| Number of employees by category of activity:   |   |               |   |   |   |   |   |   |   |
| Plant operation and maintenance           |   |               | 1,489  |   |   |   | 879 |   |   |   | 842 |   |
| Administrative support                    |   |               | 484    |   |   |   | 317 |   |   |   | 310 |   |
| Corporate management, budget and finance  |   |               | 48     |   |   |   | 38 |   |   |   | 33 |   |
| Other, including project management       |   |               | 48     |   |   |   | 72 |   |   |   | 50 |   |
| Total                                     |   |               | 2,069  |   |   |   | 1,306 |   |   |   | 1,235 |   |
| Number of employees by segment:                |   |               |   |   |   |   |   |   |   |   |   |   |
| Generation                                |   |               | 1,309  |   |   |   | 1,306 |   |   |   | 1,235 |   |
| Peru                                      |   |               | 250    |   |   |   | 230 |   |   |   | 182 |   |
| Israel                                    |   |               | 82     |   |   |   | 66 |   |   |   | 61 |   |
| Central America                           |   |               | 385    |   |   |   | 386 |   |   |   | 443 |   |
| Other                                     |   |               | 592    |   |   |   | 624 |   |   |   | 549 |   |
| Distribution                              |   |               | 760    |   |   |   | — |   |   |   | — |   |
| Total                                     |   |               | 2,069  |   |   |   | 1,306 |   |   |   | 1,235 |   |

| 1 | Does not include Energuate’s employees, as we acquired Energuate in January 2016. For further information on Energuate’s employees, see “—Distribution Operations—Employees.” |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | · | generation, transmission, and distribution and trading of electricity; |
|--|--------|------------------------------------------------------------------------|

|  | · | operation of the energy market; and |
|--|--------|-------------------------------------|

|  | · | generation prices, capacity prices and other tariffs. |
|--|--------|-------------------------------------------------------|

----

----

----

----

|  | · | a projection of demand for the next 24 months, considering generation and transmission facilities scheduled to start operations during such period. The projection assumes, as a constant, the cross-border (i.e., Ecuador) supply and demand based on historical data of transactions in the last year; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | an operations program that minimizes the operation and rationing costs for the period taking into account the hydrology, reservoirs, fuel costs and a rate of return (Tasa de Actualización) of 12% annual. The evaluation period includes a projection of the next 24 months and the 12 months precedent to March 31 of each year considering historic data; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a forecast of the short-term marginal costs of the expected operations program, adapted to the hourly blocks (bloques horarios) established by OSINERGMIN; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | determination of the basic price of energy (precio básico de la energía) for the hourly blocks of the evaluation period, as a weighted average of the marginal costs previously calculated and the electricity demand, updated to March 31 of the corresponding year; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | determination of the most efficient type of generation unit to supply additional power to the system during the hour of maximum peak demand during the year (demanda máxima anual) and the annual investment costs, considering a rate of return of 12% on an annual basis; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the base price of capacity in peak hours (precio básico de la potencia de punta) is determined following the procedure established in the general electric laws of Peru, considering as a cap the annual investment costs (which include connection and operation and maintenance costs). An additional margin to the basic price shall be included if the reserve of the system is insufficient; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | calculation of the nodal factors of energy (factores nodales de energía) for each bar of the system. The factor shall be equal to 1.00 for the bar where the basic price is set; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the capacity price in peak hours (precio de la potencia de punta en barra) is calculated for each bar of the system, adding to the basic price of capacity in peak hours the unit values of the Transmission Toll and the Connection Toll referred to in Article 60 of Law 25844; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the bus bar price of energy (precio de energía en barra) is calculated for each bar of the system, multiplying the nodal basic price of energy (precio básico de la energía nodal) of each hourly block by the respective nodal factor of energy. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | develop a diversified energy matrix, based on renewable energy resources and efficiency. The government, among other measures, will prioritize the development of efficient hydroelectric projects for electricity generation; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | competitive energy supply. One of the main guidelines is to promote private investment in energy projects. The Peruvian government has a subsidiary role in the economy as mandated by the Peruvian Constitution; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | universal access to energy supply. Among other guidelines, the Peruvian government shall develop plans to ensure the supply of power and hydrocarbons; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | promote a more efficient supply chain and efficient energy use. Comprises promoting the automation of the energy market through technological repowering; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | achieve energy self-sufficiency. For such purpose, the Peruvian government will promote the use of energy resources located in the country; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | develop an energy sector with minimal environmental impact and low carbon in a sustainable development framework. Promote the use of renewable energy and eco-friendly technologies that avoid environmental damage and promote obtaining Certified Emission Reductions by the energy projects developed; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | strengthen the institutional framework of the energy sector. Maintain a legal stability intended to promote development of the sector in the long term. Likewise, simplification and optimization of administrative and institutional structure of the sector will be promoted; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | regional market integration for a long-term development. Regional interconnection agreements will permit the development of infrastructure for energy uses; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | developing the natural gas industry and its use in household activities, transportation, commerce and industry as well as efficient power generation. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|  | 1. | Capacity and Energy to IEC: according to the IEC PPA, OPC-Rotem is obligated to allocate its full capacity to IEC. In return, IEC shall pay OPC-Rotem a monthly payment for each available MW, net, that was available to IEC. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Sale of energy to end users: OPC-Rotem is allowed to inform IEC, subject to an advanced notice, that it is releasing itself in whole or in part from the allocation of capacity to IEC, and extract (in whole or in part) the capacity allocated to IEC, in order to sell electricity to private customers pursuant to the Electricity Sector Law. OPC-Rotem may, subject to an advanced notice, re-include the excluded capacity (in whole or in part) as capacity sold to IEC. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 1. | At peak and shoulder times, one of the following shall apply: |
|--|----|---------------------------------------------------------------|

|  | 2. | At low demand times, IPPs with units with an installed capacity of up to 175 MW, may sell electrical energy produced by it with a capacity of up to 35 MW, calculated annually (in accordance with the duration applicable to the IPP with respect to peak and shoulder time, as set forth above). |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | · | Determine transmission and distribution tariffs; |
|--|--------|--------------------------------------------------|

|  | · | Enforce the sector’s laws and regulations and impose fines and penalties as legally prescribed; |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | Supervise compliance by the holders of any kind of authorization to carry on business in the electricity sector, protect the rights of end-users, and prevent anti-competitive, abusive and discriminatory activities; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Conduct arbitration proceedings and exercise powers of review in case of controversy among any parties subject to the General Electricity Law and its regulations; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Issue technical rules and performance standards for the electricity sector and enforce accepted international practices; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

|  | · | Issue regulations and rules to secure access to and use of the transmission lines and distribution grids. |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | generators with an installed capacity of more than 5 MW; |
|--|--------|----------------------------------------------------------|

|  | · | distribution companies with 15,000 or more customers; |
|--|--------|-------------------------------------------------------|

|  | · | transmission companies with a system connected to plants with capacity of more than 10 MW; |
|--|--------|--------------------------------------------------------------------------------------------|

|  | · | electricity brokers buying or selling 5 MW or more, including importers and exporters; and |
|--|--------|--------------------------------------------------------------------------------------------|

|  | · | unregulated customers. |
|--|--------|------------------------|

----

----

|  | · | a social tariff available to customers that demand up to 300 kWh per month; |
|--|--------|-----------------------------------------------------------------------------|

|  | · | a regular tariff, available to all customers that purchase electricity at low voltage; |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | three additional tariffs available to customers that purchase electricity for delivery at low voltages (of which two are applicable to Energuate’s customers); |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | three tariffs available to customers that purchase electricity for delivery at medium voltage (of which two are applicable to Energuate’s customers); and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a tariff available to municipalities that purchase electricity for public lighting. |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | customers that purchase capacity and electricity only during hours of peak demand which are between 6:00 p.m. and 10:00 p.m.; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

|  | · | customers that purchase capacity and electricity only during off-peak hours (between 10:00 p.m. and 6:00 a.m.); and |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | customers that purchase capacity and electricity during any time of the day. |
|--|--------|------------------------------------------------------------------------------|

|  | · | an allowance for electricity losses as determined by the CNEE; |
|--|--------|----------------------------------------------------------------|

|  | · | administrative costs; and |
|--|--------|---------------------------|

----

|  | · | costs of maintaining and operating the distribution systems, including the cost of capital. |
|--|--------|---------------------------------------------------------------------------------------------|

----

----

|  | · | International Quality: Qoros has engaged global companies in both the automotive and non-automotive industries to facilitate the development and design of its vehicle platform. As evidence of Qoros’ successful engineering efforts, the Qoros 3 Sedan has been recognized for its outstanding vehicle safety according to European standards, having received the Euro NCAP’s maximum five-star rating. In 2016, the Qoros 3 Sedan was awarded a China Eco-Car Assessment Programme (C-ECAP) Gold Medal Rating by the China Automotive Technology & Research Center based on a comprehensive assessment of the vehicle’s performance indicators, including cabin air quality, fuel economy and emissions. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Expressive Design: Qoros has designed its vehicles to reflect the preferences of the Chinese C-segment consumers. In 2016, Qoros continued to earn recognition for its design. For example, the Qoros 3 City SUV won an honorable mention for the Red Dot Award and the Qoros 5 SUV won a design award at the 2016 Automotive Brand Concept. In addition, Qoros' concept vehicles, including NEV concept vehicles and the Qoros 3 City SUV QamFree, won design awards in 2016. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Innovative Customer Experience: All of Qoros’ vehicles are equipped with a MMH, including a touch screen with swipe gestured control HMI, and most Qoros vehicles are equipped with the “QorosQloud,” a cutting-edge telematics and cloud-based entertainment and services system that delivers a variety of free (e.g., cloud-enhanced navigation, car care, and social sharing) and premium (e.g., real-time traffic, parking information, cloud-enabled map update, and safe drive monitoring) connectivity features. Qoros believes that the features and the services provided by the QorosQloud integrates Qoros’ vehicle into the driver’s lifestyle, by virtually connecting the vehicle, the driver and the driver’s digital world. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Category                 |   | Vehicle category |   | Wheel base (millimeter) |   | Length of vehicles (millimeter) |   | Engine displacement (liter) (excluding turbo) |
|--------------------------|--------|------------------|--------|-------------------------|--------|---------------------------------|--------|-----------------------------------------------|
| Mini                |   | A                |   | 2,000 – 2,300     |   | Below 4,000                     |   | Below 1.0                                     |
| Small-size          |   | B                |   | 2,300 – 2,500     |   | 4,000 – 4,300             |   | 1.0 – 1.5                               |
| Compact             |   | C                |   | 2,500 – 2,700     |   | 4,200 – 4,600             |   | 1.6 – 2.0                               |
| Mid-size            |   | D                |   | 2,700 – 2,900     |   | 4,500 – 4,900             |   | 1.8 – 2.4                               |
| Mid- to large-size  |   | E                |   | 2,800 – 3,000     |   | 4,800 – 5,000             |   | Above 2.4                                     |
| Large-size          |   | E                |   | Above 3,000             |   | Above 5,000                     |   | Above 3.0                                     |

----

| Segment                |   | Examples of Brands                                |
|------------------------|--------|---------------------------------------------------|
| Joint venture Brands   |   |                                              |
| Premium           |   | Mercedes Benz, BMW, Audi, Cadillac                |
| Mid- to High-end  |   | Volkswagen, Nissan, Buick, Toyota, Honda, Hyundai |
| Economy           |   | Suzuki                                            |
| Local Chinese Brands   |   |                                              |
| Mid- to High-end  |   | Roewe, Senova, MG                                 |
| Economy           |   | BYD, Geely, Great Wall                            |

----

----

|  | · | Qoros 3 Sedan –launched in December 2013; |
|--|--------|-------------------------------------------------|

|  | · | Qoros 3 Hatch –launched in June 2014; |
|--|--------|---------------------------------------------|

|  | · | Qoros 3 City SUV –launched in December 2014; |
|--|--------|----------------------------------------------------|

|  | · | Qoros 5 SUV –launched in March 2016; and |
|--|--------|------------------------------------------------|

|  | · | Qoros 3GT –launched in November 2016. |
|--|--------|---------------------------------------------|

|  | · | convenience: Qoros provides its customers with a variety of free services designed to simplify navigation and car care, including offering trip planning, navigation services which, after parking, can continue to provide the user with directions via the use of mobile devices, and smart points of interest. Qoros also provides its customers with real-time monitoring of car service maintenance and driving behavior to enhance passenger safety. Qoros has developed a web-based customer communication platform, which enables Qoros to leverage vehicle usage data to provide targeted messages to Qoros drivers; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | social and fun: Qoros provides its customers with free services to connect Qoros drivers with their friends and other Qoros drivers, offering check-in, shared trips and other social networking features. For example, the QorosQloud includes the “Pick Me Up” feature, which provides navigation services to Qoros drivers who have offered rides to their friends on the WeChat messaging and calling app; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | access to Qoros World: The QorosQloud is integrated with the WeChat messaging and calling app, allowing Qoros drivers to access QorosQloud functions through their WeChat account. This feature enables drivers to plan and schedule car maintenance and access Qoros' emergency assistance services. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | · | generate demand for Qoros’ vehicles and drive leads to Qoros’ dealerships and sales teams; |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | build long-term brand awareness and develop and manage Qoros’ reputation; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | employ effective marketing strategies in a cost-efficient manner; and |
|--|--------|-----------------------------------------------------------------------|

|  | · | use Qoros’ web-based customer communication platform as part of its customer relationship management initiative. |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|                |   |                                                                                                                                                                                                                                                                                                   |   | 2016                |   |   | 2015                |   |   | 2014                |   |
|---------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
| Business Unit       |   | Description of Business Unit                                                                                                                                                                                                                                                                           |   | TEU Transported (%) |   |   | TEU Transported (%) |   |   | TEU Transported (%) |   |
| Pacific        |   | The Pacific BU consists of the Trans-Pacific trade zone, which covers trade between Asia (mainly China) and the east coast and west coast of the U.S., Canada, Central America and the Caribbean                                                                                                       |   |                | 33.6   |   |                |   | 34.7   |                |   |   | 31.0 |   |
| Cross Suez     |   | The Cross Suez BU consists of the Asia-Europe trade zone, which covers trade between Asia and Europe through the Suez Canal, primarily through the Asia-Black Sea/Mediterranean Sea sub-trade zone                                                                                                     |   |                | 16.5   |   |                |   | 15.4   |                |   |   | 21.6 |   |
| Intra-Asia     |   | The Intra-Asia BU consists primarily of the Intra-Asia trade zone, which covers trade within regional ports in Asia, as well as trade between Asia and Africa                                                                                                                                          |   |                | 20.3   |   |                |   | 18.5   |                |   |   | 18.4 |   |
| Atlantic       |   | The Atlantic BU consists of the Trans-Atlantic trade zone, which covers the trade between the Mediterranean to US east and west coasts and the Caribbean, as well as Intra trades which include the East Mediterranean, West Mediterranean and North Europe and the Mediterranean to West Africa trade |   |                | 21.4   |   |                |   | 22.4   |                |   |   | 21.7 |   |
| Latin America  |   | The Latin America BU consists of the Intra-America trade zone, which covers trade within regional ports in the Americas as well as trade between South American east coast and Asia and the Mediterranean to South America east coast via the Atlantic Ocean                                           |   |                | 8.3    |   |                |   | 9.0    |                |   |   | 7.3 |   |
| Total          |   |                                                                                                                                                                                                                                                                                                   |   |                | 100.0  |   |                |   | 100.0  |                |   |   | 100.0 |   |

----

|                                                  |   | Container Vessels |   |
|-------------------------------------------------------|--------|-------------------|--------|
|                                                  |   | Number            |   |   | Capacity (TEU) |   |   | OtherVessels |   |   | Total |   |
| Vessels owned by ZIM                             |   |              | 7      |   |   |   | 32,023 |   |   |   | - |   |   |   | 7 |   |
|                                                  |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vessels chartered from parties related to ZIM         |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Periods up to 1 year (from December 31, 2016)    |   |              | 3      |   |   |   | 15,592 |   |   |   | 2 | 1  |   |   | 5 |   |
| Periods between 1 to 5 years (from December 31, 2016) |   |              | 2      |   |   |   | 10,600 |   |   |   | - |   |   |   | 2 |   |
| Periods over 5 years (from December 31, 2016)    |   |              | 2      |   |   |   | 8,442 |   |   |   | - |   |   |   | 2 |   |
|                                                  |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vessels chartered from third parties                  |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Periods up to 1 year (from December 31, 2016)    |   |              | 33     |   |   |   | 118,470 |   |   |   | - |   |   |   | 33 |   |
| Periods between 1 to 5 years (from December 31, 2016) |   |              | 17     |   |   |   | 87,820 |   |   |   | - |   |   |   | 17 |   |
| Periods over 5 years (from December 31, 2016)    |   |              | 6      |   |   |   | 49,619 |   |   |   | - |   |   |   | 6 |   |
|                                                  |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                            |   |              | 70     |   |   |   | 322,566 |   |   |   | 2 | 1  |   |   | 72 |   |

| 1. | Vehicle transport vessels. |
|----|----------------------------|

|  | · | 59 vessels were chartered under a “time charter,” which consists of chartering the vessel capacity for a given period of time against a daily charter fee, with the crewing and technical operation of the vessel handled by its owner, including 9 vessels chartered under a time charter from parties related to ZIM; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | 1 vessel was charted under a “bareboat charter,” which consists of the chartering of a vessel for a given period of time against a charter fee, with the operation of the vessel handled by the charterer; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | 5 vessels were chartered under financial lease agreements. |
|--|--------|------------------------------------------------------------|

----

----

----

|  | · | ZIM must be, at all times, a company incorporated and registered in Israel, whose headquarters and registered main office are domiciled in Israel; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | at least a majority of the members of ZIM’s board of directors, including the Chairman of the board, as well as the Chief Executive Officer or the person serving as its Chief Business Officer, whatever his/her title may be, must be Israeli citizens; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any transfer of vessels shall be invalid vis-à-vis ZIM, its shareholders and any third party if, as a result thereof, the minimum fleet target mandated by the State of Israel will not be maintained and the holder of the Special State Share has not given prior written consent thereto; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any holding and/or transfer of shares and/or allocation that confers possession of shares in ZIM at 35% or more of its issued share capital, or that vests the holder thereof with control over ZIM, including as a result of a voting agreement, shall be invalid vis-à-vis ZIM, its shareholders and any third party, if the holder of the Special State Share has not given prior written consent thereto; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | any transfer of shares granting the owner a holding exceeding 24% but not exceeding 35%, shall require prior notice to the State of Israel, including full information regarding the transferor and the transferee, the percentage of the shares held by the transferee after the transaction will be completed, and the relevant information about the transaction, including voting agreements and agreements for the appointment of directors (if applicable). In any case, if the State of Israel determines that a transfer of such shares shall constitute potential harm to the State of Israel’s security, or any of its vital interests, or that it has not received the relevant information in order to make a decision, the State of Israel shall be entitled to notify the parties within 30 days that it opposes the transaction, and will be obligated to justify its opposition. In such a situation, the requestor of the transaction shall be entitled to transfer this matter to the competent court, which shall hear and rule on the subject in question. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Methanol Production. Primus intends to own, operate and develop, or license the technology for the operation and development of, methanol production plants to service local users of methanol who are located far from larger-scale methanol plants. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Gasoline Production. Primus intends to provide its STG+ process to convert natural gas into high octane gasoline for industrial and chemical plant owners who have spare syngas capacity. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Gas Flaring Solutions. Primus offers gas flaring solutions to convert natural gas that would otherwise be flared into gasoline. Primus intends to provide technology licenses and collect gasoline production royalties from operators seeking to remain in compliance with strict anti-flaring regulations and monetize natural gas that would otherwise be flared. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|  | · | ZIM—A large provider of global container shipping services, which, as of December 31, 2016 operated 72 (owned and chartered) vessels with a total container capacity of 322,566 TEUs, and in which we have a 32% equity interest; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Primus, an innovative developer and owner of a proprietary natural gas-to-liquid technology process, in which we have a 91% equity interest. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| Years Ended December 31, 2015 and 2016 |
|----------------------------------------|
|                                   |   | Ownership Percentage |   | Method of Accounting |   | Treatment in ConsolidatedFinancial Statements |
| IC Power1                         |   | 100% |   | Consolidated2 |   | Consolidated |
| Qoros                             |   | 50% |   | Equity |   | Share in losses of associated companies, net of tax |
| ZIM                               |   | 32% |   | Equity |   | Share in losses of associated companies, net of tax |
| Other                             |   |   |   |   |   |   |
| Primus                            |   | 91% |   | Consolidated |   | Consolidated |

| 1. | Kenon's segments for the periods after December 31, 2015 include IC Power (Generation) and IC Power (Distribution), as a result of Kenon’s acquisition of its distribution business in January 2016. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | IC Power’s consolidated results of operations include income/loss from associated companies relating to IC Power’s non-controlling interests in Pedregal, which IC Power accounts for pursuant to the equity method of accounting. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|           | Six Months Ended December 31, 2014 |   | All Periods Prior to June 30, 2014    |
|----------------|------------------------------------|--------|---------------------------------------|
|           | Ownership Percentage               |   | Method of Accounting                  |   | Treatment in Combined Carve-Out Financial Statements |   | Ownership Percentage |   | Method of Accounting |   | Treatment in Combined Carve-Out Financial Statements |
| IC Power  | 100%                               |   | Consolidated1                         |   | Consolidated |   | 100% |   | Consolidated1 |   | Consolidated |
| Qoros     | 50%                                |   | Equity                                |   | Share in losses of associated companies, net of tax |   | 50% |   | Equity |   | Share in losses of associated companies, net of tax |
| ZIM2      | 32%                                |   | Equity                                |   | Share in losses of associated companies, net of tax3 |   | 99.7%2 |   | Consolidated—Discontinued Operations |   | Income (loss) for the year from discontinued operations (after taxes) |
|           |                               |   |                                  |   |   |   |   |   |   |   |   |
| Tower     | 29%                                |   | Equity                                |   | Share in income of associated companies, net of tax |   | 29% |   | Equity |   | Share in losses of associated companies, net of tax4 |
|           |                               |   |                                  |   |   |   |   |   |   |   |   |
| Other     |                               |   |                                  |   |   |   |   |   |   |   |   |
| Primus    | 91%                                |   | Consolidated                          |   | Consolidated |   | 91% |   | Consolidated |   | Consolidated |
| Petrotec  | —3                           |   | Equity— Discontinued Operations |   | Income (loss) for the year from discontinued operations (after taxes) |   | 69% |   | Consolidated— Discontinued Operations |   | Income (loss) for the year from discontinued operations (after taxes) |
| HelioFocus     | 70%                                |   | Consolidated                          |   | Consolidated |   | 70%4 |   | Equity |   | Share in losses of associated companies, net of tax |

| 1. | IC Power’s consolidated results of operations for the year ended December 31, 2014, as reported by Kenon, included income/loss from IC Power’s associated companies (Generandes and Pedregal), which were accounted for pursuant to the equity method of accounting. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | On July 16, 2014, ZIM completed the restructuring of its outstanding indebtedness, which resulted in IC, and consequently, Kenon, owning 32% of the restructured ZIM as compared to IC’s previous interest in ZIM of approximately 99.7%. As a result of the restructuring, ZIM’s results of operations for all periods prior to June 30, 2014 are reflected as discontinued in Kenon’s results of operations. ZIM’s results of operations for all periods subsequent to June 30, 2014 are reflected in Kenon’s share in losses of associated companies, net of tax. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | For further information on Kenon’s December 2014 sale of its equity interest in Petrotec, see “Item 4.B Business Overview—Our Businesses—Remaining Businesses—Petrotec.” |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Notwithstanding our majority equity interest in HelioFocus, as a result of veto rights held by HelioFocus’ other major shareholder until May 31, 2014, we did not consolidate HelioFocus’ results with our own until June 30, 2014. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                             |   | Year Ended December 31, 2016 |    |
|------------------------------------------------------------------|--------|------------------------------|---------|
|                                                             |   | IC PowerGeneration           |    |   | IC Power Distribution |   |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   |                         |    |   | (in millions of USD, unless otherwise indicated) |   |
| Sales                                                       |   | $                            | 1,365   |   |   | $ | 509 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 1,874 |   |
| Depreciation and amortization                               |   |                         | (157    | ) |   |   | (15 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (172 | ) |
| Impairment of assets and investments                        |   |                         | — |   |   |   | — |   |   |   | — |   |   |   | (72 | ) |   |   | — |   |   |   | (72 | ) |
| Financing income                                            |   |                         | 10      |   |   |   | 4 |   |   |   | — |   |   |   | 17 |   |   |   | (12 | ) |   |   | 19 |   |
| Financing expenses                                          |   |                         | (166    | ) |   |   | (19 | ) |   |   | — |   |   |   | (17 | ) |   |   | 12 |   |   |   | (190 | ) |
| Share in (losses) income of associated companies                 |   |                         | 1       |   |   |   | — |   |   |   | (143 | ) |   |   | (44 | ) |   |   | — |   |   |   | (186 | ) |
| Provision of financial guarantee                            |   |                         | — |   |   |   | — |   |   |   | — |   |   |   | (130 | ) |   |   | — |   |   |   | (130 | ) |
| Income (loss) before taxes                                  |   | $                            | 31      |   |   | $ | 47 |   |   | $ | (143 | ) |   | $ | (270 | ) |   | $ | — |   |   | $ | (335 | ) |
| Income taxes                                                |   |                         | (45     | ) |   |   | (12 | ) |   |   | — |   |   |   | (2 | ) |   |   | — |   |   |   | (59 | ) |
| Income (loss) from continuing operations                    |   | $                            | (14     | ) |   | $ | 35 |   |   | $ | (143 | ) |   | $ | (272 | ) |   | $ | — |   |   | $ | (394 | ) |
|                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                  |   |                         | (29     | ) |   |   | 32 |   |   |   | (143 | ) |   |   | (272 | ) |   |   | — |   |   |   | (412 | ) |
| Non-controlling interests                                   |   |                         | 15      |   |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 18 |   |
| Segment assets4                                             |   | $                            | 4,217   |   |   | $ | 600 |   |   | $ | — |   |   | $ | 113 | 5  |   | $ | — |   |   | $ | 4,930 |   |
| Investments in associated companies                         |   |                         | 8       |   |   |   | — |   |   |   | 118 |   |   |   | 82 |   |   |   | — |   |   |   | 208 |   |
| Segment liabilities                                         |   |                         | 3,462   |   |   |   | 542 |   |   |   | — |   |   |   | 240 | 6  |   |   | — |   |   |   | 4,244 |   |
| Capital expenditure7                                        |   |                         | 262     |   |   |   | 28 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 290 |   |
| Adjusted EBITDA                                             |   | $                            | 343     | 8  |   | $ | 77 | 9  |   | $ | — |   |   | $ | (24 | )10 |   | $ | — |   |   | $ | 396 |   |
| Percentage of consolidated revenues                         |   |                         | 73      | % |   |   | 27 | % |   |   | — | % |   |   | — | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                         | 82      | % |   |   | 12 | % |   |   | 2 | % |   |   | 4 | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                         | 86      | % |   |   | 12 | % |   |   | — | % |   |   | 2 | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                         | 87      | % |   |   | 19 | % |   |   | — | % |   |   | (6 | )% |   |   | — | % |   |   | 100 | % |

| 1. | Associated company. |
|----|---------------------|

----

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment financing income and expenses. |
|----|---------------------------------------------------------------------------------|

| 4. | Excludes investments in associates. |
|----|-------------------------------------|

| 5. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 6. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 7. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 8. | For a reconciliation of IC Power Generation’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2016, see “Item 3.A Selected Financial Data.” |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | For a reconciliation of IC Power Distribution’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2016, see “Item 3.A Selected Financial Data.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                             |   | Year Ended December 31, 2015                     |    |
|------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                             |   | IC Power                                         |    |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   | (in millions of USD, unless otherwise indicated) |    |
| Sales                                                       |   | $                                                | 1,294   |   |   | $ | — |   |   | $ | — |   |   | $ | (5 | ) |   | $ | 1,289 |   |
| Depreciation and amortization                               |   |                                             | (119    | ) |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | (120 | ) |
| Asset impairment                                            |   |                                             | — |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | (7 | ) |
| Financing income                                            |   |                                             | 10      |   |   |   | — |   |   |   | 3 |   |   |   | — |   |   |   | 13 |   |
| Financing expenses                                          |   |                                             | (115    | ) |   |   | — |   |   |   | (9 | ) |   |   | — |   |   |   | (124 | ) |
| Share in (losses) income of associated companies                 |   |                                             | — |   |   |   | (196 | ) |   |   | 9 |   |   |   | — |   |   |   | (187 | ) |
| Gain from distribution of dividend in kind                  |   |                                             | — |   |   |   | — |   |   |   | 210 |   |   |   | — |   |   |   | 210 |   |
| Income (loss) before taxes                                  |   | $                                                | 149     |   |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 158 |   |
| Income taxes                                                |   |                                             | (62     | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (62 | ) |
| Income (loss) from continuing operations                    |   | $                                                | 87      | 4  |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 96 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                 |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                  |   |                                             | 63      |   |   |   | (196 | ) |   |   | 206 |   |   |   | — |   |   |   | 73 |   |
| Non-controlling interests                                   |   |                                             | 24      |   |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | 23 |   |
| Segment assets5                                             |   | $                                                | 4,069   |   |   | $ | — |   |   | $ | 45 | 6  |   | $ | — |   |   | $ | 4,114 |   |
| Investments in associated companies                         |   |                                             | 9       |   |   |   | 159 |   |   |   | 201 |   |   |   | — |   |   |   | 369 |   |
| Segment liabilities                                         |   |                                             | 3,063   |   |   |   | — |   |   |   | 156 | 7  |   |   | — |   |   |   | 3,219 |   |
| Capital expenditure8                                        |   |                                             | 533     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 533 |   |
| Adjusted EBITDA                                             |   | $                                                | 372     | 4,9  |   | $ | — |   |   | $ | 1 | 10  |   | $ | — |   |   | $ | 373 |   |
| Percentage of consolidated revenues                         |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                                             | 91      | % |   |   | 4 | % |   |   | 5 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                                             | 99      | % |   |   | — |   |   |   | 1 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |

| 1. | Associated company. |
|----|---------------------|

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM and Tower (up to June 30, 2015), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment sales. |
|----|---------------------------------------------------------|

| 4. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Excludes investments in associates. |
|----|-------------------------------------|

| 6. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 7. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 8. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 9. | For a reconciliation of IC Power’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, see “Item 3.A Selected Financial Data.” |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                         |   | Year Ended December 31, 20141                    |   |
|--------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                         |   | IC Power                                         |   |   | Qoros2 |   |   | Other3 |   |   | Adjustments4 |   |   | Combined Carve-Out Results |   |
|                                                         |   | (in millions of USD, unless otherwise indicated) |   |
| Sales                                                   |   | $                                                | 1,358  |   |   | $ | — |   |   | $ | — |   |   | $ | 14 |   |   | $ | 1,372 |   |
| Depreciation and amortization                           |   |                                             | (108   | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (108 | ) |
| Financing income                                        |   |                                             | 9      |   |   |   | — |   |   |   | 39 |   |   |   | (32 | ) |   |   | 16 |   |
| Financing expenses                                      |   |                                             | (132   | ) |   |   | — |   |   |   | (10 | ) |   |   | 32 |   |   |   | (110 | ) |
| Share in (losses) income of associated companies             |   |                                             | 14     |   |   |   | (175 | ) |   |   | (10 | ) |   |   | — |   |   |   | (171 | ) |
| Asset impairment                                        |   |                                             | (35    | ) |   |   | — |   |   |   | (13 | ) |   |   | — |   |   |   | (48 | ) |
| Gain from disposal of investee                          |   |                                             | 157    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 157 |   |
| Gain from bargain purchase                              |   |                                             | 68     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 68 |   |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before taxes                              |   | $                                                | 321    |   |   | $ | (175 | ) |   | $ | (37 | ) |   | $ | — |   |   | $ | 109 |   |
| Income taxes                                            |   |                                             | (99    | ) |   |   | — |   |   |   | (4 | ) |   |   | — |   |   |   | (103 | ) |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                |   | $                                                | 222    | 5  |   | $ | (175 | ) |   | $ | (41 | ) |   | $ | — |   |   | $ | 6 |   |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                             |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                              |   |                                             | 197    |   |   |   | (175 | ) |   |   | (34 | ) |   |   | — |   |   |   | (12 | ) |
| Non-controlling interests                               |   |                                             | 25     |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | 18 |   |
| Segment assets6                                         |   | $                                                | 3,832  |   |   | $ | — |   |   | $ | 837 | 7  |   | $ | (785 | ) |   | $ | 3,884 |   |
| Investments in associated companies                     |   |                                             | 10     |   |   |   | 221 |   |   |   | 205 |   |   |   | — |   |   |   | 436 |   |
| Segment liabilities                                     |   |                                             | 2,860  |   |   |   | — |   |   |   | 806 | 8  |   |   | (785 | ) |   |   | 2,881 |   |
| Capital expenditure9                                    |   |                                             | 593    |   |   |   | — |   |   |   | 12 |   |   |   | — |   |   |   | 605 |   |
| Adjusted EBITDA                                         |   | $                                                | 348    | 5,10  |   | $ | — |   |   | $ | (43 | )11 |   | $ | — |   |   | $ | 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 Adjusted EBITDA                  |   |                                             | 114    | % |   |   | — |   |   |   | (14 | )% |   |   | — |   |   |   | 100 | % |

| 1. | During 2015, an immaterial error was identified with respect to the deferred tax calculation relating to the effect of foreign exchange rate on non-monetary assets in previous years in IC Power. Kenon’s and IC Power’s financial information for 2014, 2013 and 2012 has been revised to correct this immaterial error. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Associated company. |
|----|---------------------|

| 3. | Includes financing income from former 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 (up to June 30, 2014), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | “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.” |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2014, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Excludes investments in associates. |
|----|-------------------------------------|

| 7. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 8. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 9. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 10. | For a reconciliation of IC Power’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2014, see “Item 3.A Selected Financial Data.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | Year Ended December 31, 2016 |   |
|----------------------------------------------|--------|------------------------------|--------|
|                                         |   | Qoros                        |   |   | ZIM |   |   | Other |   |   | Total |   |
|                                         |   | (in millions of USD)         |   |
| Income (loss) (100% of results)         |   | $                            | (285   | ) |   | $ | (168 | ) |   | $ | — |   |   | $ | (437 | ) |
| Share of Income (loss) from Associates  |   |                         | (143   | ) |   |   | (44 | ) |   |   | 1 |   |   |   | (186 | ) |
| Book Value                              |   |                         | 118    |   |   |   | 82 |   |   |   | 8 |   |   |   | 208 |   |

----

|                                         |   | Year Ended December 31, 2015 |   |
|----------------------------------------------|--------|------------------------------|--------|
|                                         |   | Qoros                        |   |   | ZIM |   |   | Tower1 |   |   | Other |   |   | Total |   |
|                                         |   | (in millions of USD)         |   |
| Income (loss) (100% of results)         |   | $                            | (392   | ) |   | $ | 2 |   |   | $ | (1 | ) |   | $ | — |   |   | $ | (391 | ) |
| Share of Income (loss) from Associates  |   |                         | (196   | ) |   |   | 10 |   |   |   | (1 | ) |   |   | — |   |   |   | (187 | ) |
| Book Value                              |   |                         | 159    |   |   |   | 201 |   |   |   | — |   |   |   | 9 |   |   |   | 369 |   |

| 1. | Reflects Tower’s results of operations up to June 30, 2015. As a result of our distribution in specie of substantially all of our interest in Tower, representing 23% of the then currently outstanding Tower shares on July 23, 2015, Tower’s results of operations for all periods subsequent to June 30, 2015 are not reflected in our consolidated financial statements. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | Year Ended December 31, 2014 |    |
|----------------------------------------------|--------|------------------------------|---------|
|                                         |   | Qoros                        |    |   | ZIM1 |   |   | Tower |   |   | Other |   |   | Total |   |
|                                         |   | (in millions of USD)         |    |
| Income (loss) (100% of results)         |   | $                            | (350    | ) |   | $ | (73 | ) |   | $ | 25 |   |   | $ | — |   |   | $ | (398 | ) |
| Share of Income (loss) from Associates  |   |                         | (175    | ) |   |   | (13 | ) |   |   | 18 |   |   |   | (1 | ) |   |   | (171 | ) |
| Book Value                              |   |                         | 221     |   |   |   | 191 |   |   |   | 14 |   |   |   | 10 |   |   |   | 436 |   |
| Market Capitalization                   |   |                         | — |   |   |   | — |   |   | $ | 774 | 2  |   |   | — |   |   |   | 774 |   |
| Kenon Share of Market Capitalization    |   |                         | — |   |   |   | — |   |   | $ | 224 |   |   |   | — |   |   |   | 224 |   |

| 1. | On July 16, 2014, ZIM completed the restructuring of its outstanding indebtedness, which resulted in IC, and consequently, Kenon, owning 32% of the restructured ZIM as compared to IC’s previous interest in ZIM of approximately 99.7%. As a result of the restructuring, ZIM is only reflected as an associated company in Kenon’s results of operations for the six months ended December 31, 2014. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Market capitalization is based upon 58,033,049 shares outstanding, as of December 31, 2014, at $13.33 per share, the closing price of Tower’s shares on NASDAQ on December 31, 2014. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | Six Months Ended     |   |
|----------------------------------------------------------|--------|----------------------|--------|
|                                                     |   | June 30, 2014        |   |
|                                                     |   | (in millions of USD) |   |
| Sales                                               |   | $                    | 1,741  |   |
| Cost of sales                                       |   |                 | (1,681 | ) |
|                                                     |   |                 |   |   |
| Gross profit (loss)                                 |   |                 | 60     |   |
|                                                     |   |                 |   |   |
| Operating loss                                      |   |                 | (18    | ) |
|                                                     |   |                 |   |   |
| Loss before taxes on income                         |   |                 | (119   | ) |
| Taxes on income                                     |   |                 | (10    | ) |
|                                                     |   |                 |   |   |
| Loss after taxes on income                          |   |                 | (129   | ) |
| Income from realization of discontinued operations  |   |                 | 609    |   |
|                                                     |   |                 |   |   |
| Income for the period from discontinued operations  |   | $                    | 480    |   |

----

|                                         |   |             |   |   |                                                     |   |                                            |   |                     |    |    |                   |   |
|----------------------------------------------|--------|------------------|--------|--------|----------------------------------------------------------|--------|-------------------------------------------------|--------|--------------------------|---------|---------|------------------------|--------|
| Entity                                       |   | Country          |   |   | Energy used to Operate Power Station |   | COD/ Date of Acquisition              |   | InstalledCapacity(MW)1,2 |    |    | ProportionateCapacity3 |   |
|                                         |   |             |   |   |                                                     |   |
| Capacity at January 1, 2014        |   |             | 2,070  |   |                                                     |   | 1,608                                           |   |
| Corinto                                 |   | Nicaragua        |   |   | HFO                                                      |   | Acquired—March 2014                       |   |                     | 71      |    |                   |   | 46 |   |
| Tipitapa Power                          |   | Nicaragua        |   |   | HFO                                                      |   | Acquired—March 2014                       |   |                     | 51      |    |                   |   | 33 |   |
| Amayo I                                 |   | Nicaragua        |   |   | Wind                                                     |   | Acquired—March 2014                       |   |                     | 40      |    |                   |   | 24 |   |
| Amayo II                                |   | Nicaragua        |   |   | Wind                                                     |   | Acquired—March 2014                       |   |                     | 23      |    |                   |   | 14 |   |
| Surpetroil                              |   | Colombia         |   |   | Natural gas                                              |   | Acquired—March 2014                       |   |                     | 15      |    |                   |   | 9 |   |
| Kallpa—Las Flores            |   | Peru             |   |   | Natural gas                                              |   | Acquired—April 2014                       |   |                     | 193     |    |                   |   | 145 |   |
| JPPC                                    |   | Jamaica          |   |   | HFO                                                      |   | Acquired RemainingInterest—May 20144 |   |                     | — |    |                   |   | 50 |   |
| Puerto Quetzal                          |   | Guatemala        |   |   | HFO                                                      |   | Acquired—September 2014                   |   |                     | 179     | 5  |                   |   | 179 |   |
| Total increase in capacity during 2014  |   |             | 572    |   |                                                     |   | 500                                             |   |
|                                         |   |             |        |   |                                                     |   |                                            |   |
| Capacity at December 31, 2014      |   |             | 2,642  |   |                                                     |   | 2,108                                           |   |
| Nejapa                                  |   | El Salvador |   |   | HFO                                                      |   | Acquired Remaining Interest—January 20156 |   |                     | — |    |                   |   | 41 |   |
| OPC-Hadera7                             |   | Israel           |   |   | Natural gas                                              |   | Acquired—August 2015                      |   |                     | 18      |    |                   |   | 18 |   |
| Surpetroil                              |   | Colombia         |   |   | Natural gas                                              |   | COD Plants—2015                           |   |                     | 5       |    |                   |   | 3 |   |
| Total increase in capacity during 2015  |   |             | 23     |   |                                                     |   | 62                                              |   |
|                                         |   |             |   |   |                                                     |   |                                            |   |
| Capacity at December 31, 2015      |   |             | 2,665  |   |                                                     |   | 2,170                                           |   |
| Kanan                                   |   | Panama           |   |   | HFO                                                      |   | COD—April 2016                            |   |                     | 92      |    |                   |   | 92 |   |
| Samay I                                 |   | Peru             |   |   | Diesel and natural gas                    |   | COD—May 2016                              |   |                     | 632     |    |                   |   | 474 |   |
| Surpetroil                              |   | Colombia         |   |   | Natural gas                                              |   | COD Plants—2016                           |   |                     | 11      |    |                   |   | 7 |   |
| CDA                                     |   | Peru             |   |   | Hydroelectric                                            |   | COD—August 2016                           |   |                     | 545     |    |                   |   | 409 |   |
| Total increase in capacity during 2016  |   |             | 1,280  |   |                                                     |   | 872                                             |   |
|                                         |   |             |   |   |                                                     |   |                                            |   |
| Capacity at December 31, 2016           |   |             | 3,945  |   |                                                     |   | 3,152                                           |   |

| 1. | As a result of IC Power’s sale of its indirect interest in Enel Generación Perú in September 2014, the capacity growth summary does not include Enel Generación Perú’s 1,540 MW of installed capacity during the periods in which IC Power held its indirect interest in Enel Generación Perú. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Reflects 100% of the capacity of each of IC Power’s assets, regardless of the ownership interest in the entity that owns each such asset. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Reflects the proportionate capacity of each of IC Power’s assets, as determined by the ownership interest in the entity that owns each such asset. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | In May 2014, IC Power increased its equity ownership in JPPC from 16% to 100%. |
|----|--------------------------------------------------------------------------------|

| 5. | In November 2014, Puerto Quetzal transferred a 55 MW power barge to Kanan, reducing Puerto Quetzal’s capacity from 234 MW to 179 MW. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | In January 2015, IC Power increased its equity ownership in Nejapa from 71% to 100%. |
|----|--------------------------------------------------------------------------------------|

| 7. | OPC-Hadera also holds a conditional license for the construction of a cogeneration power station in Israel, based upon a plant with 140 MW of capacity. Construction commenced in June 2016 and COD is expected by early 2019. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                     |   | 2016           |   |   | 2015       |   |   | 2014                                |   |
|--------------------------|--------|----------------|--------|--------|------------|--------|--------|-------------------------------------|--------|
| Country                  |   | Inflation Rate |   |   | GDP Growth |   |   | CurrencyAppreciation (Depreciation) |   |   | Inflation Rate |   |   | GDP Growth |   |   | CurrencyAppreciation (Depreciation) |   |   | Inflation Rate |   |   | GDP Growth |   |   | CurrencyAppreciation (Depreciation) |   |
|                     |   | (%)            |   |
| Peru                |   |           | 3.6    |   |       |   | 4.7    |                                |   |   | (6 | ) |   |   | 3.5 |   |   |   | 3.3 |   |   |   | (12 | ) |   |   | 3.2 |   |   |   | 2.4 |   |   |   | (11 | ) |
| Israel              |   |           | (0.6   | )      |       |   | 2.8    |                                |   |   | 1 |   |   |   | (0.6 | ) |   |   | 2.5 |   |   |   | (9 | ) |   |   | (0.2 | ) |   |   | 2.6 |   |   |   | (12 | ) |
| Central America          |   |           |   |   |       |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nicaragua           |   |           | 6.2    |   |       |   | 4.5    |                                |   |   | (5 | ) |   |   | 4.0 |   |   |   | 4.9 |   |   |   | (5 | ) |   |   | 6.4 |   |   |   | 4.0 |   |   |   | (5 | ) |
| Guatemala           |   |           | 4.5    |   |       |   | 3.5    |                                |   |   | 1 |   |   |   | 2.4 |   |   |   | 4.1 |   |   |   | 1 |   |   |   | 3.4 |   |   |   | 4.0 |   |   |   | 4 |   |
| El Salvador         |   |           | 1.0    |   |       |   | 2.4    |                                |   |   | — |   |   |   | (0.7 | ) |   |   | 2.4 |   |   |   | — |   |   |   | 0.5 |   |   |   | 1.8 |   |   |   | — |   |
| Panama              |   |           | 0.7    |   |       |   | 5.2    |                                |   |   | — |   |   |   | 0.1 |   |   |   | 5.8 |   |   |   | — |   |   |   | 2.1 |   |   |   | 6.2 |   |   |   | — |   |
| Other                    |   |           |   |   |       |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bolivia             |   |           | 3.9    |   |       |   | 3.7    |                                |   |   | (1 | ) |   |   | 4.1 |   |   |   | 4.8 |   |   |   | (1 | ) |   |   | 5.2 |   |   |   | 5.2 |   |   |   | — |   |
| Chile               |   |           | 4.0    |   |       |   | 1.7    |                                |   |   | (3 | ) |   |   | 4.3 |   |   |   | 2.3 |   |   |   | (15 | ) |   |   | 4.6 |   |   |   | 1.8 |   |   |   | (23 | ) |
| Dominican Republic  |   |           | 2.3    |   |       |   | 5.9    |                                |   |   | (2 | ) |   |   | 0.8 |   |   |   | 7.0 |   |   |   | (3 | ) |   |   | 3.0 |   |   |   | 7.3 |   |   |   | (6 | ) |
| Jamaica             |   |           | 4.4    |   |       |   | 1.5    |                                |   |   | (7 | ) |   |   | 3.7 |   |   |   | 0.9 |   |   |   | (6 | ) |   |   | 6.4 |   |   |   | (0.5 | ) |   |   | (10 | ) |
| Colombia            |   |           | 7.6    |   |       |   | 2.2    |                                |   |   | (11 | ) |   |   | 5.0 |   |   |   | 3.1 |   |   |   | (37 | ) |   |   | 3.7 |   |   |   | 4.6 |   |   |   | (7 | ) |

|                     |   | Year EndedDecember 31, 2016 |   |   | Year EndedDecember 31, 2015 |   |    | Year EndedDecember 31, 2014 |   |
|--------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|---------|-----------------------------|--------|
| Peru                |   |                        | 79     | %      |                        |   | 97      | %                           |   |   | 97 | % |
| Israel              |   |                        | 91     | %      |                        |   | 97      | %                           |   |   | 90 | % |
| Central America          |   |                        |   |   |                        |   |    |                        |   |   |   |   |
| Nicaragua           |   |                        | 88     | %      |                        |   | 90      | %                           |   |   | 95 | % |
| Guatemala           |   |                        | 95     | %      |                        |   | 94      | %                           |   |   | 97 | % |
| El Salvador         |   |                        | 97     | %      |                        |   | 96      | %                           |   |   | 97 | % |
| Panama (Kanan)      |   |                        | 69     | %      |                        |   | — |                        |   |   | — |   |
| Other                    |   |                        |   |   |                        |   |    |                        |   |   |   |   |
| Bolivia             |   |                        | 92     | %      |                        |   | 89      | %                           |   |   | 91 | % |
| Chile               |   |                        | 98     | %      |                        |   | 97      | %                           |   |   | 96 | % |
| Dominican Republic  |   |                        | 78     | %      |                        |   | 81      | %                           |   |   | 89 | % |
| Jamaica             |   |                        | 85     | %      |                        |   | 86      | %                           |   |   | 85 | % |
| Colombia            |   |                        | 97     | %      |                        |   | 96      | %                           |   |   | 84 | % |

----

|                         |   |                         |   |                  |   |                           |   |                |   |             |   |
|------------------------------|--------|------------------------------|--------|-----------------------|--------|--------------------------------|--------|---------------------|--------|------------------|--------|
| Segment                      |   | Period                       |   | Sales under PPAs |   | Sales in Spot Market |   | NetEnergyGenerated2 |   | Energy Purchased |   |
|                         |   |                         |   | (GWh)                 |   |
| Peru                         |   | Kallpa:                      |   |                  |   |                           |   |                |   |             |   |
| Year Ended December 31, 2016 |   | 6,182                        |   | 283                   |   | 5,892                          |   | 573                 |   |
| Year Ended December 31, 2015 |   | 6,327                        |   | 106                   |   | 5,027                          |   | 1,406               |   |
| Year Ended December 31, 2014 |   | 6,324                        |   | 235                   |   | 5,698                          |   | 861                 |   |
|                         |   |                         |   |                  |   |                           |   |                |   |
| Samay I3:                    |   |                         |   |                  |   |                           |   |                |   |
| Year Ended December 31, 2016 |   | —                      |   | 94                    |   | 94                             |   | —             |   |
|                         |   | CDA:                         |   |                  |   |                           |   |                |   |             |   |
|                         |   | Year Ended December 31, 2016 |   | 509                   |   | 182                            |   | 683                 |   | 8                |   |
|                         |   |                         |   |                  |   |                           |   |                |   |             |   |
| Israel                       |   | OPC-Rotem:                   |   |                  |   |                           |   |                |   |             |   |
| Year Ended December 31, 2016 |   | 3,908                        |   | —               |   | 3,422                          |   | 486                 |   |
| Year Ended December 31, 2015 |   | 3,976                        |   | —               |   | 3,759                          |   | 217                 |   |
| Year Ended December 31, 2014 |   | 3,973                        |   | —               |   | 3,400                          |   | 573                 |   |
|                         |   |                         |   |                  |   |                           |   |                |   |
| OPC-Hadera:                  |   |                         |   |                  |   |                           |   |                |   |
|                         |   | Year Ended December 31, 2016 |   | 88                    |   | —                        |   | 88                  |   | —          |   |
|                         |   | Year Ended December 31, 2015 |   | 23                    |   | —                        |   | 23                  |   | —          |   |
|                         |   |                         |   |                  |   |                           |   |                |   |             |   |
| Central America              |   | ICPNH:                       |   |                  |   |                           |   |                |   |             |   |
| Year Ended December 31, 2016 |   | 957                          |   | 51                    |   | 945                            |   | 63                  |   |
| Year Ended December 31, 2015 |   | 1,062                        |   | 28                    |   | 1,054                          |   | 36                  |   |
| Year Ended December 31, 2014 |   | 1,063                        |   | 22                    |   | 1,058                          |   | 27                  |   |
|                         |   |                         |   |                  |   |                           |   |                |   |
| Puerto Quetzal               |   |                         |   |                  |   |                           |   |                |   |
| Year Ended December 31, 2016 |   | 528                          |   | 185                   |   | 347                            |   | 366                 |   |
| Year Ended December 31, 2015 |   | 594                     |   | 368                   |   | 641                            |   | 321                 |   |
| Year Ended December 31, 2014 |   | 1,005                        |   | 53                    |   | 465                       |   | 593                 |   |
|                         |   |                         |   |                  |   |                           |   |                |   |
| Nejapa:                      |   |                         |   |                  |   |                           |   |                |   |
| Year Ended December 31, 2016 |   | 807                          |   | 37                    |   | 383                            |   | 461                 |   |
| Year Ended December 31, 2015 |   | 794                          |   | 53                    |   | 436                            |   | 411                 |   |
| Year Ended December 31, 2014 |   | 626                          |   | 93                    |   | 373                            |   | 346                 |   |
|                         |   |                         |   |                  |   |                           |   |                |   |
| Kanan:                       |   |                         |   |                  |   |                           |   |                |   |
| Year Ended December 31, 2016 |   | 523                          |   | 7                     |   | 164                            |   | 366                 |   |
|                         |   |                         |   |                  |   |                           |   |                |   |             |   |

----

|    |   |   |   |                  |   |                           |   |                |   |             |   |
|---------|--------|--------|--------|-----------------------|--------|--------------------------------|--------|---------------------|--------|------------------|--------|
| Segment |   | Period |   | Sales under PPAs |   | Sales in Spot Market |   | NetEnergyGenerated2 |   | Energy Purchased |

|                         |   |                         |   | (GWh)   |   |
|------------------------------|--------|------------------------------|--------|--------------|--------|
| Other                        |   | COBEE:                       |   |         |   |   |   |   |   |   |   |
|                         |   |                         |   |         |   |   |   |
| Year Ended December 31, 2016 |   | 275                          |   | 585          |   | 860 |   | — |   |
| Year Ended December 31, 2015 |   | 270                          |   | 769          |   | 1,039 |   | — |   |
| Year Ended December 31, 2014 |   | 268                          |   | 762          |   | 1,030 |   | — |   |
| Central Cardones:            |   |                         |   |         |   |   |   |   |   |
| Year Ended December 31, 2016 |   | —                      |   | 1            |   | (1 | )  | 2 |   |
| Year Ended December 31, 2015 |   | —                      |   | 4            |   | 3 |   | 1 |   |
| Year Ended December 31, 2014 |   | —                      |   | —      |   | — |   | — |   |
|                         |   |                         |   |         |   |   |   |   |   |   |   |
|                         |   | Colmito:                     |   |         |   |   |   |   |   |   |   |
| Year Ended December 31, 2016 |   | 254                     |   | 9            |   | 8 |   | 255 |   |
| Year Ended December 31, 2015 |   | 255                     |   | 26           |   | 26 |   | 255 |   |
| Year Ended December 31, 2014 |   | 250                     |   | —      |   | 5 |   | 245 |   |
|                         |   |                         |   |         |   |   |   |   |   |   |   |
|                         |   | CEPP:                        |   |         |   |   |   |   |   |   |   |
| Year Ended December 31, 2016 |   | 88                      |   | 257          |   | 257 |   | 88 |   |
| Year Ended December 31, 2015 |   | —       |   | 291          |   | 291 |   | — |   |
| Year Ended December 31, 2014 |   | 253                     |   | 54           |   | 236 |   | 71 |   |
|                         |   | JPPC:                        |   |         |   |   |   |   |   |   |   |
| Year Ended December 31, 2016 |   | 390                     |   | —      |   | 390 |   | — |   |
| Year Ended December 31, 2015 |   | 427                     |   | —      |   | 427 |   | — |   |
| Year Ended December 31, 2014 |   | 410                     |   | —      |   | 410 |   | — |   |
|                         |   |                         |   |         |   |   |   |   |   |   |   |
|                         |   | Surpetroil:                  |   |         |   |   |   |   |   |   |   |
| Year Ended December 31, 2016 |   | 73                      |   | 2            |   | 75 |   | 75 |   |
| Year Ended December 31, 2015 |   | 43                      |   | —      |   | 43 |   | — |   |
| Year Ended December 31, 2014 |   | 48                      |   | —      |   | 48 |   | — |   |
|                         |   |                         |   |         |   |   |   |   |   |   |   |
|                         |   | Pedregal:                    |   |         |   |   |   |   |   |   |   |
| Year Ended December 31, 2016 |   | 289                     |   | 69           |   | 255 |   | 103 |   |
| Year Ended December 31, 2015 |   | 280                     |   | 102          |   | 343 |   | 39 |   |
| Year Ended December 31, 2014 |   | 270                     |   | 135          |   | 391 |   | 14 |   |
|                         |   |                         |   |         |   |   |   |   |   |   |   |
| Total (excluding Pedregal)   |   | Year Ended December 31, 2016 |   | 14,582  |   | 1,693 |   | 13,607 |   | 2,668 |   |
| Year Ended December 31, 2015 |   | 13,748                  |   | 1,645        |   | 12,746 |   | 2,647 |   |
| Year Ended December 31, 2014 |   | 14,220                  |   | 1,219        |   | 12,723 |   | 2,716 |   |

| 1. | The information included within the table reflects 100% of the energy sold under PPAs, sold in the spot market, generated, and purchased by IC Power’s assets, regardless of its ownership interest in the entity that owns each such asset, and also contains information for certain of IC Power’s assets from periods prior to acquisition of such asset. For further information on IC Power’s acquisition of assets during the periods within the table, see “—Capacity Growth.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Net energy generated is defined as energy delivered at the interconnection to the system. |
|----|-------------------------------------------------------------------------------------------|

| 3. | In May 2016, Samay I reached its COD. In July 2016, all four of Samay I’s units were declared unavailable to the system due to damage to the shafts in the three of the plant’s four units. By February 2017, all four of the units had been declared available to the system. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                     |   | Year Ended December 31, |   |
|--------------------------|--------|-------------------------|--------|
|                     |   | 2016                    |   |   | 2015 |   |   | 2014 |   |
|                     |   | (%)                     |   |
| Singapore           |   |                    | 17     | % |   |   | 17 | % |   |   | - |   |
| Peru1               |   |                    | 30     | % |   |   | 28 | % |   |   | 30 | % |
| Israel2             |   |                    | 25     | % |   |   | 26.5 | % |   |   | 26.5 | % |
| Central America          |   |                    |   |   |   |   |   |   |   |   |   |   |
| Nicaragua3          |   |                    | 25     | % |   |   | 25 | % |   |   | 25 | % |
| Guatemala           |   |                    | 25     | % |   |   | 25 | % |   |   | 28 | % |
| El Salvador         |   |                    | 30     | % |   |   | 30 | % |   |   | 30 | % |
| Panama              |   |                    | 25     | % |   |   | 25 | % |   |   | 25 | % |
| Other                    |   |                    |   |   |   |   |   |   |   |   |   |   |
| Bolivia             |   |                    | 25     | % |   |   | 25 | % |   |   | 25 | % |
| Chile4              |   |                    | 24     | % |   |   | 22.5 | % |   |   | 21 | % |
| Dominican Republic  |   |                    | 27     | % |   |   | 27 | % |   |   | 28 | % |
| Jamaica5            |   |                    | 33.3   | % |   |   | 33.3 | % |   |   | 33.3 | % |
| Colombia6           |   |                    | 40     | % |   |   | 39 | % |   |   | 34 | % |

| 1. | The corporate income tax rate in Peru decreased to 28% in 2015 and is scheduled to increase to 29.5% in 2017. The dividend tax rate increased to 6.8% in 2015 and is scheduled to decrease to 5% in 2017. Distributions of profits for 2014 were subject to a tax rate of 4.1%. Kallpa, CDA and Samay I entered into legal stability agreements with the relevant tax authority in Peru pursuant to which, during the term of the corresponding agreement, Kallpa, CDA and Samay I, respectively, will be subject to the income tax regime in place at the time each such agreement was entered into, which stipulates a 30% income tax rate, and not the general income tax regime applicable to other firms in Peru. Kallpa terminated its stability agreement in December 2016, and CDA and Samay I's stability agreements expire in 2022 and 2024, respectively. Only after CDA and Samay I’s tax agreements expire, or if CDA and Samay I terminate the corresponding agreement, will they be subject to the general income tax regime of Peru and receive the benefit of the changes in the Peruvian income tax rates described above. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | The corporate income tax rate in Israel decreased to 25% on January 1, 2016 and 24% on January 1, 2017, and will be further reduced to 23% on January 1, 2018. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The statutory rate in Nicaragua in 2012-2015 was 30%. However, Corinto and Tipitapa Power are subject to 25% income tax, based on a Foreign Investment Agreement signed in June 2000, which protects them from any unfavorable changes in the tax law. In addition, Amayo I and Amayo II are tax exempt from income tax payments, in accordance with Law No.532 for Electric Power Generation with Renewable Sources Incentive, up to a period of seven years after their CODs; such period expired for Amayo I in March 2016, and will expire for Amayo II in March 2017. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The corporate income tax rate in Chile increased to 22.5% in 2015 and 24% in 2016, and is scheduled to increase to 25% in 2017 for shareholders on the attribution method or decrease to 22.5% in 2017 for shareholders on the cash-basis method. The corporate income tax rate is scheduled to increase to 27% in 2018 for shareholders on the cash-basis method. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | 33.3% is the rate applied to regulated companies in Jamaica, including the companies regulated by Office of Utilities Regulation. |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

| 6. | The aggregate income tax rate of 34% in Colombia is composed of a base corporate income tax rate of 25% plus the “income tax for equality,” or CREE, tax at a rate of 9%. Beginning in 2015, a surcharge to the CREE tax rate of 5% on income in excess of 800 million Colombian pesos (approximately $272 million) would effectively increase the aggregate income tax rate to approximately 39%. The surcharge on the CREE tax increased to 6% in 2016 and 2017, and is expected to decrease to 4% in 2018, effectively representing an aggregate income tax rate of approximately 40%, 40% and 37% in 2016, 2017 and 2018, respectively, before being eliminated. The aggregate income tax rate will be 33% in 2019. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|  | · | Impairment analysis; |
|--|--------|----------------------|

|  | · | Revenue recognition; |
|--|--------|----------------------|

|  | · | Provisions for legal claims; and |
|--|--------|----------------------------------|

|  | · | Useful life of property, plant and equipment. |
|--|--------|-----------------------------------------------|

----

|  | · | Significant changes in the technological, economic or legal environment in which the CGUs operate, taking into account the country in which each CGU operates; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Increases in interest rates or other market rates of return, which are likely to affect the discount rates used in calculating each CGU’s recoverable amount; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Evidence of obsolescence or physical damage of each CGU’s assets; |
|--|--------|-------------------------------------------------------------------------|

|  | · | Actual performance of each CGU that does not meet expected performance indicators (e.g., its budget); |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | Declines in tariffs agreed upon in PPAs and/or in current energy prices; |
|--|--------|--------------------------------------------------------------------------|

|  | · | Increases in fuel and/or gas prices and other power generation costs; and |
|--|--------|---------------------------------------------------------------------------|

|  | · | New laws and regulations, or changes in existing laws and regulations, that could have an adverse effect on the power generation industry. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | margins based on average industry margins, discounted by approximately 30% to reflect ZIM's smaller size and operating model relative to its peers; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | peer market capitalization movements since December 2015; |
|--|--------|-----------------------------------------------------------|

|  | · | an EBITDA multiple range of 10.5x to 11.5x to the normalized EBITDA of $42 million; and |
|--|--------|-----------------------------------------------------------------------------------------|

|  | · | growth in freight rates of 7.1%. |
|--|--------|----------------------------------|

----

|  | · | A detailed cash flow forecast for the above-mentioned period based upon ZIM’s business plan; |
|--|--------|----------------------------------------------------------------------------------------------------|

|  | · | Bunker price: according to the future price curve of fuel; |
|--|--------|------------------------------------------------------------|

|  | · | Freight rates: a compound annual growth rate of 1.4% over the projection period; |
|--|--------|----------------------------------------------------------------------------------|

|  | · | Increase in aggregate TEU shipped: a compound annual growth rate of 3.0% over the projection period, which is in line with the expected trends in the main trade zones in which ZIM intends to operate; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Charter hire rates: contractual rates in effect as of June 30, 2016, and assuming anticipated market rates for renewals of charters expiring in the projection period; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Discount rate of 9.5%; |
|--|--------|------------------------|

|  | · | Long-term nominal growth rate of 1.5%, which is consistent with the expected industry average; |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | Capital expenditures that are less than or equal to ZIM’s expected vessel depreciation; and |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | Payment of tax at ZIM’s corporate tax rate of 25%; also assumes expected use of tax losses. |
|--|--------|---------------------------------------------------------------------------------------------------|

|                       |   | Increase      |   |   | Decrease |   |
|----------------------------|--------|---------------|--------|--------|----------|--------|
|                       |   | By 100 bps    |   |
|                       |   | (US$ million) |   |
| Discount rate         |   |          | (130   | )      |     |   | 164 |   |
| Terminal growth rate  |   |          | 106    |   |     |   | (83 | ) |

----

----

----

|                                                               |   | Year Ended December 31, |    |   |   |   |
|--------------------------------------------------------------------|--------|-------------------------|---------|--------|--------|--------|
|                                                               |   | (in millions of USD)    |    |   |   |   |
|                                                               |   | 2016                    |    |   | 2015   |   |   | % Change |   |
| Revenues from sale of electricity                             |   | $                       | 1,874   |   |   | $      | 1,289 |   |   |   | 45 | % |
| Cost of sales and services                                    |   |                    | (1,359  | )      |   |   | (863 | ) |   |   | 57 | % |
| Depreciation                                                  |   |                    | (160    | )      |   |   | (111 | ) |   |   | 44 | % |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Gross profit                                                  |   | $                       | 355     |   |   | $      | 315 |   |   |   | 13 | % |
| Selling, general and administrative expenses                  |   |                    | (147    | )      |   |   | (104 | ) |   |   | 41 | % |
| Gain from disposal of investees                               |   |                    | — |   |   |   | — |   |   |   | * |   |
| Impairment of assets and investments                          |   |                    | (72     | )      |   |   | (7 | ) |   |   | * |   |
| Dilution gains from reduction in equity interest held in associate |   |                    | — |   |   |   | 33 |   |   |   | * |   |
| Gain on bargain purchase                                      |   |                    | — |   |   |   | — |   |   |   | * |   |
| Other expenses                                                |   |                    | (5      | )      |   |   | (7 | ) |   |   | (29 | )% |
| Other income                                                  |   |                    | 21      |   |   |   | 15 |   |   |   | 40 | % |
| Gain from distribution of dividend in kind                    |   |                    | — |   |   |   | 210 |   |   |   | * |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Operating profit                                              |   | $                       | 152     |   |   | $      | 456 |   |   |   | (67 | )% |
| Financing expenses                                            |   |                    | (190    | )      |   |   | (124 | ) |   |   | 53 | % |
| Financing income                                              |   |                    | 19      |   |   |   | 13 |   |   |   | 46 | % |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Financing expenses, net                                       |   | $                       | (171    | )      |   | $      | (111 | ) |   |   | 54 | % |
| Share in losses of associated companies, net of tax           |   |                    | (186    | )      |   |   | (187 | ) |   |   | 1 | % |
| Provision of financial guarantee                              |   |                    | (130    | )      |   |   | — |   |   |   | * |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Profit before income taxes                                    |   | $                       | (335    | )      |   | $      | 158 |   |   |   | * |   |
| Tax expenses                                                  |   |                    | (59     | )      |   |   | (62 | ) |   |   | (5 | )% |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net Profit for the year                                            |   | $                       | (394    | )      |   | $      | 96 |   |   |   | * |   |
| Attributable to:                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders:                                   |   | $                       | (412    | )      |   | $      | 73 |   |   |   | * |   |
| Non-controlling interests                                     |   | $                       | 18      |   |   | $      | 23 |   |   |   | (22 | )% |

----

|                                                             |   | Year Ended December 31, 2016 |    |
|------------------------------------------------------------------|--------|------------------------------|---------|
|                                                             |   | IC PowerGeneration           |    |   | IC Power Distribution |   |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   |                         |    |   | (in millions of USD, unless otherwise indicated) |   |
| Sales                                                       |   | $                            | 1,365   |   |   | $ | 509 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 1,874 |   |
| Depreciation and amortization                               |   |                         | (157    | ) |   |   | (15 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (172 | ) |
| Impairment of assets and investments                        |   |                         | — |   |   |   | — |   |   |   | — |   |   |   | (72 | ) |   |   | — |   |   |   | (72 | ) |
| Financing income                                            |   |                         | 10      |   |   |   | 4 |   |   |   | — |   |   |   | 17 |   |   |   | (12 | ) |   |   | 19 |   |
| Financing expenses                                          |   |                         | (166    | ) |   |   | (19 | ) |   |   | — |   |   |   | (17 | ) |   |   | 12 |   |   |   | (190 | ) |
| Share in (losses) income of associated companies                 |   |                         | 1       |   |   |   | — |   |   |   | (143 | ) |   |   | (44 | ) |   |   | — |   |   |   | (186 | ) |
| Provision of financial guarantee                            |   |                         | — |   |   |   | — |   |   |   | — |   |   |   | (130 | ) |   |   | — |   |   |   | (130 | ) |
| Income (loss) before taxes                                  |   | $                            | 31      |   |   | $ | 47 |   |   | $ | (143 | ) |   | $ | (270 | ) |   | $ | — |   |   | $ | (335 | ) |
| Income taxes                                                |   |                         | (45     | ) |   |   | (12 | ) |   |   | — |   |   |   | (2 | ) |   |   | — |   |   |   | (59 | ) |
| Income (loss) from continuing operations                    |   | $                            | (14     | ) |   | $ | 35 |   |   | $ | (143 | ) |   | $ | (272 | ) |   | $ | — |   |   | $ | (394 | ) |
|                                                             |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                 |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                  |   |                         | (29     | ) |   |   | 32 |   |   |   | (143 | ) |   |   | (272 | ) |   |   | — |   |   |   | (412 | ) |
| Non-controlling interests                                   |   |                         | 15      |   |   |   | 3 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 18 |   |
| Segment assets4                                             |   | $                            | 4,217   |   |   | $ | 600 |   |   | $ | — |   |   | $ | 113 | 5  |   | $ | — |   |   | $ | 4,930 |   |
| Investments in associated companies                         |   |                         | 8       |   |   |   | — |   |   |   | 118 |   |   |   | 82 |   |   |   | — |   |   |   | 208 |   |
| Segment liabilities                                         |   |                         | 3,462   |   |   |   | 542 |   |   |   | — |   |   |   | 240 | 6  |   |   | — |   |   |   | 4,244 |   |
| Capital expenditure7                                        |   |                         | 262     |   |   |   | 28 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 290 |   |
| Adjusted EBITDA                                             |   | $                            | 343     | 8  |   | $ | 77 | 9  |   | $ | — |   |   | $ | (24 | )10 |   | $ | — |   |   | $ | 396 |   |
| Percentage of consolidated revenues                         |   |                         | 73      | % |   |   | 27 | % |   |   | — | % |   |   | — | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                         | 82      | % |   |   | 12 | % |   |   | 2 | % |   |   | 4 | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                         | 86      | % |   |   | 12 | % |   |   | — | % |   |   | 2 | % |   |   | — | % |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                         | 87      | % |   |   | 19 | % |   |   | — | % |   |   | (6 | )% |   |   | — | % |   |   | 100 | % |

| 1. | Associated company. |
|----|---------------------|

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM, as an associated company; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment financing income and expenses. |
|----|---------------------------------------------------------------------------------|

| 4. | Excludes investments in associates. |
|----|-------------------------------------|

| 5. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 6. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 7. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 8. | For a reconciliation of IC Power Generation’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2016, see “Item 3.A Selected Financial Data.” |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | For a reconciliation of IC Power Distribution’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2016, see “Item 3.A Selected Financial Data.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             |   | Year Ended December 31, 2015                     |    |
|------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                             |   | IC Power                                         |    |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   | (in millions of USD, unless otherwise indicated) |    |
| Sales                                                       |   | $                                                | 1,294   |   |   | $ | — |   |   | $ | — |   |   | $ | (5 | ) |   | $ | 1,289 |   |
| Depreciation and amortization                               |   |                                             | (119    | ) |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | (120 | ) |
| Asset impairment                                            |   |                                             | — |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | (7 | ) |
| Financing income                                            |   |                                             | 10      |   |   |   | — |   |   |   | 3 |   |   |   | — |   |   |   | 13 |   |
| Financing expenses                                          |   |                                             | (115    | ) |   |   | — |   |   |   | (9 | ) |   |   | — |   |   |   | (124 | ) |
| Share in (losses) income of associated companies                 |   |                                             | — |   |   |   | (196 | ) |   |   | 9 |   |   |   | — |   |   |   | (187 | ) |
| Gain from distribution of dividend in kind                  |   |                                             | — |   |   |   | — |   |   |   | 210 |   |   |   | — |   |   |   | 210 |   |
| Income (loss) before taxes                                  |   | $                                                | 149     |   |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 158 |   |
| Income taxes                                                |   |                                             | (62     | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (62 | ) |
| Income (loss) from continuing operations                    |   | $                                                | 87      | 4  |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 96 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                 |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                  |   |                                             | 63      |   |   |   | (196 | ) |   |   | 206 |   |   |   | — |   |   |   | 73 |   |
| Non-controlling interests                                   |   |                                             | 24      |   |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | 23 |   |
| Segment assets5                                             |   | $                                                | 4,069   |   |   | $ | — |   |   | $ | 45 | 6  |   | $ | — |   |   | $ | 4,114 |   |
| Investments in associated companies                         |   |                                             | 9       |   |   |   | 159 |   |   |   | 201 |   |   |   | — |   |   |   | 369 |   |
| Segment liabilities                                         |   |                                             | 3,063   |   |   |   | — |   |   |   | 156 | 7  |   |   | — |   |   |   | 3,219 |   |
| Capital expenditure8                                        |   |                                             | 533     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 533 |   |
| Adjusted EBITDA                                             |   | $                                                | 372     | 4,9  |   | $ | — |   |   | $ | 1 | 10  |   | $ | — |   |   | $ | 373 |   |
| Percentage of consolidated revenues                         |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                                             | 91      | % |   |   | 4 | % |   |   | 5 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                                             | 99      | % |   |   | — |   |   |   | 1 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |

| 1. | Associated company. |
|----|---------------------|

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM and Tower (up to June 30, 2015), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment sales. |
|----|---------------------------------------------------------|

| 4. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Excludes investments in associates. |
|----|-------------------------------------|

| 6. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 7. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 8. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 9. | For a reconciliation of IC Power’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, see “Item 3.A Selected Financial Data.” |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                       |   | Year EndedDecember 31, |   |   | Year EndedDecember 31, |   |
|----------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                                                       |   | 2016                   |   |   | 2015                   |   |
|                                                                       |   | ZIM                    |   |   | Qoros                  |   |   | ZIM |   |   | Qoros |   |   | Tower1 |   |
|                                                                       |   | (in millions of USD)   |   |
| Revenues                                                                   |   | $                      | 2,539  |   |                   | $      | 377 |   |   | $ | 2,991 |   |   | $ | 232 |   |   | $ | 462 |   |
| Income/(Loss)                                                         |   |                   | (168   | )      |                   |   | (285 | ) |   |   | 2 |   |   |   | (392 | ) |   |   | (1 | ) |
| Other comprehensive income/(loss)                                          |   |                   | (13    | )      |                   |   | — |   |   |   | (2 | ) |   |   | — |   |   |   | — |   |
|                                                                       |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income/(loss)                                          |   | $                      | (181   | )      |                   | $      | (285 | ) |   | $ | — |   |   | $ | (392 | ) |   | $ | (1 | ) |
|                                                                       |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of Kenon in total comprehensive income/(loss)                        |   | $                      | (57    | )      |                   | $      | (143 | ) |   | $ | — |   |   | $ | (196 | ) |   | $ | — |   |
| Adjustments                                                           |   |                   | 14     |   |                   |   | — |   |   |   | 10 |   |   |   | — |   |   |   | (1 | ) |
|                                                                       |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of Kenon in total comprehensive income/(loss) presented in the books |   | $                      | (48    | )      |                   | $      | (143 | ) |   | $ | 10 |   |   | $ | (196 | ) |   | $ | (1 | ) |
|                                                                       |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                          |   | $                      | 1,704  |   |                   | $      | 1,534 |   |   | $ | 1,912 |   |   | $ | 1,665 |   |   | $ | — |   |
| Total liabilities                                                     |   |                   | 1,804  |   |                   |   | 1,469 |   |   |   | 1,834 |   |   |   | 1,635 |   |   |   | — |   |
| Book value of investment                                              |   |                   | 82     |   |                   |   | 118 |   |   |   | 201 |   |   |   | 159 |   |   |   | — |   |

| 1. | Reflects Tower’s results of operations up to June 30, 2015. As a result of our distribution in specie of substantially all of our interest in Tower, representing 23% of the then currently outstanding Tower shares on July 23, 2015, Tower’s results of operations for all periods subsequent to June 30, 2015 are not reflected in our consolidated financial statements. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $50 million contribution to revenues in 2016 from CDA, which reached COD in August 2016; and |
|--|--------|------------------------------------------------------------------------------------------------|

|  | · | a $40 million contribution to revenues in 2016 from Samay I, which reached COD in May 2016. |
|--|--------|---------------------------------------------------------------------------------------------|

----

|  | · | a $54 million, or 50%, reduction in Puerto Quetzal’s revenue to $55 million in 2016 from $109 million in 2015 as a result of a $44 million decrease in Puerto Quetzal’s revenue from energy sales to $41 million in 2016 from $85 million in 2015 due to (1) the expiration of a short-term PPA and a 50% decrease in spot market sales, which led to a 26% decrease in the total volume of energy sold by Puerto Quetzal to 713 GWh in 2016 from 962 GWh in 2015 and (2) a $30, or 34%, decrease in Puerto Quetzal’s average energy price to $58 per MWh in 2016 from $88 per MWh in 2015 due to adjustments in PPAs and a reduction in spot market energy prices, in each case as a result of a decrease in HFO prices; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $21 million, or 19%, reduction in ICPNH’s revenue to $90 million in 2016 from $111 million in 2015, as a result of (1) a $12 million, or 19%, decrease in ICPNH’s revenue from energy sales from its thermal plants (Corinto and Tipitapa Power) to $52 million in 2016 from $64 million in 2015, primarily as a result of an $11, or 14%, decrease in the average energy prices of the thermal plants to $67 per MWh in 2016 from $78 per MWh in 2015 due to adjustments in PPAs as a result of a decrease in HFO prices (which reduced the energy sales of the thermal plants by $8 million), and a 6% decrease in the total volume of energy sold by the thermal plants to 771 GWh in 2016 from 820 GWh in 2015, primarily as a result of the breakdown of one of Corinto’s engines in March 2016; and (2) a $7 million, or 23%, decrease in ICPNH’s revenue from energy sales from its wind farms (Amayo I and Amayo II) to $23 million in 2016 from $30 million in 2015, due to lower generation as a result of lower wind levels. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $17 million, or 17%, reduction in Nejapa’s revenue to $83 million in 2016 from $100 million in 2015, as a result of a decrease in Nejapa’s average energy price to $83 per MWh in 2016 from $102 per MWh in 2015 due to adjustments in PPAs and a reduction in spot market energy prices as a result of a decrease in HFO prices. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $67 million contribution in revenues in 2016 from Kanan, which commenced commercial operations in April 2016; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | a $7 million, or 41%, increase in Cenérgica’s revenue to $24 million in 2016 from $17 million in 2015, primarily as a result of a $7 million increase in Cenérgica’s revenue from energy trading to $13 million in 2016 from $6 million in 2015; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $7 million contribution in revenues from Guatemel, which was acquired in January 2016. |
|--|--------|------------------------------------------------------------------------------------------|

|  | · | a $10 million, or 26%, decrease in CEPP’s revenue to $29 million in 2016 from $39 million in 2015, primarily as a result of a $43, or 40%, decrease in CEPP’s average energy price to $64 per MWh in 2016 from $107 per MWh in 2015, due to a reduction in spot market energy prices as a result of a decrease in HFO prices. The effects of the decrease in CEPP’s average energy price were partially offset by a $6 million, or 19%, increase in revenue as a result of a 55 GWh, or 19%, increase in the volume of energy sold by CEPP to 346 GWh in 2016 from 291 GWh in 2015, as a result of sales under a short term PPA signed in April 2016; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $7 million, or 25%, decrease in Colmito’s revenue to $21 million in 2016 from $28 million in 2015, primarily as a result of a $24, or 28%, decrease in Colmito’s average energy price to $61 per MWh in 2016 from $85 per MWh in 2015, due to higher hydrology levels during 2016, which reduced spot market energy prices (as the price in Colmito’s PPA is linked to spot market energy prices), and a 7% decrease in the volume of energy sold by Colmito to 263 GWh in 2016 from 281 GWh in 2015 (which reduced Colmito’s revenue from energy sales by $2 million); |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a $3 million, or 7%, decrease in JPPC’s revenue to $42 million in 2016 from $45 million in 2015, primarily as a result of a $10, or 12%, decrease in JPPC’s average energy price to $72 per MWh in 2016 from $82 per MWh in 2015 due to adjustments in PPAs as a result of a decrease in HFO prices; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $3 million, or 7%, decrease in COBEE’s revenue to $40 million in 2016 from $43 million in 2015, primarily as a result of a 17% decrease in the volume of energy sold by COBEE to 861 GWh in 2016 from 1,039 GWh in 2015, primarily due to lower hydrology levels during 2016. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $30 million contribution in cost of sales from Samay I and CDA ($16 million and $14 million, respectively), which commenced commercial operations in May 2016 and August 2016, respectively; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $22 million, or 16%, increase in Kallpa’s gas supply, transportation and distribution costs to $156 million in 2016 from $134 million in 2015 as a result of a 14% increase in the volume of gas consumption due to a 16% increase in the volume of Kallpa’s energy generation to 6,015 GWh in 2016 from 5,166 GWh in 2015, which was partially offset by a 3% increase in the price of gas in 2016; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $9 million, or 10%, increase in Kallpa’s transmission charges to $95 million in 2016 from $86 million in 2015, as a result of a 19% increase in the primary toll system tariff in 2016 as compared to 2015. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $10 million decrease in energy purchases as a result of the higher volume of energy generated by Kallpa as discussed above; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $6 million decrease in maintenance expenses, as a result of scheduled major maintenance and inspection work conducted at Kallpa during 2015. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $36 million increase in the cost of sales of OPC-Hadera, which was acquired in August 2015; and |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | a $6 million, or 82%, increase in OPC-Rotem’s energy purchase costs as a result of a 124% increase in the volume of energy purchased to 486 GWh in 2016 from 217 GWh in 2015, due to scheduled maintenance performed at OPC-Rotem in Q2 2016. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | an 8% decrease in the volume of energy generated by OPC-Rotem to 3,487 GWh in 2016 from 3,811 GWh in 2015, as a result of the maintenance performed at OPC-Rotem in Q2 2016; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a 6% decrease in the price of natural gas purchased by OPC-Rotem. The prices OPC-Rotem pays for natural gas under its gas supply agreement are indexed to the EA generation component tariff, subject to a floor price. Therefore, as a result of the August 2015 reduction in the EA generation component tariff, OPC-Rotem’s natural gas prices were lower in 2016 as compared to 2015. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $42 million decrease in Puerto Quetzal’s cost of sales from $94 million in 2015 to $52 million in 2016 primarily due to (1) a $30 million decrease in Puerto Quetzal’s fuel expense as a result of a 38% decrease in the price of HFO purchased by Puerto Quetzal and a 46% decrease in the volume of energy generated by Puerto Quetzal to 364 GWh in 2016 from 673 GWh in 2015; and (2) a $12 million decrease in Puerto Quetzal’s energy purchase costs (despite a 14% increase in the volume of energy purchased) as a result of a $24, or 26%, decrease in spot purchase prices to $67 per MWh in 2016 from $91 per MWh during 2015; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | an $18 million decrease in Nejapa’s cost of sales from $85 million in 2015 to $67 million in 2016 due to (1) an $11 million decrease in Nejapa’s fuel expenses, primarily as a result of a 12% decrease in the volume of energy generated to 387 GWh in 2016 from 440 GWh in 2015, and a 23% decrease in the price of HFO purchased by Nejapa, and (2) a $3 million decrease in Nejapa’s energy purchase costs as a result of a 25% decrease in spot purchase prices, which was partially offset by a 12% increase in the volume of energy purchased by Nejapa to 461 GWh in 2016 from 411 GWh in 2015, as a result of lower generation as Nejapa purchased more energy in the spot market (instead of generating such energy) in light of the low spot prices; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $14 million decrease in ICPNH’s cost of sales due to a $16 million decrease in Corinto and Tipitapa’s fuel expenses, as a result of a 21% decrease in the price of HFO. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | $55 million contribution to cost of sales in 2016 from Kanan, which commenced commercial operations in April 2016; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | a $4 million contribution to cost of sales in 2016 from Guatemel, which was acquired in January 2016. |
|--|--------|-------------------------------------------------------------------------------------------------------|

|  | · | an $8 million decrease in Colmito’s cost of sales, primarily due to (1) a $4 million decrease in Colmito’s energy purchases, as a result of a 33% decrease in the spot market energy price during 2016 as compared to 2015, driven by an increase in hydrology levels in Chile during 2016; and (2) a $2 million decrease in Colmito’s fuel expenses, mainly as a result of a 69% decrease in the volume of energy generated by Colmito; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $7 million decrease in CEPP’s cost of sales, primarily as a result of a $9 million decrease in CEPP’s fuel expenses, as a result of a 30% decrease in the price of HFO purchased by CEPP, and a 12% decrease in the volume of energy generated by CEPP; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $6 million decrease in JPPC’s cost of sales, mainly due to a $7 million decrease in JPPC’s fuel expenses, as a result of a 17% decrease in the price of HFO purchased by JPPC, and an 8% decrease in the volume of energy generated by JPPC. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | an $18 million, or 86%, increase in depreciation and amortization expense in IC Power’s generation business’ Central America segment to $39 million in 2016 from $21 million in 2015, primarily as a result of the depreciation and amortization expenses of Kanan, which commenced commercial operations in April 2016; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the recognition of a $15 million depreciation and amortization expense in 2016, as a result of IC Power’s acquisition of its distribution business in January 2016; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $10 million, or 20%, increase in depreciation and amortization expense in IC Power’s generation business’ Peru segment to $60 million in 2016 from $50 million in 2015, primarily as a result of depreciation expenses associated with CDA and Samay I, which commenced commercial operations in August 2016 and May 2016, respectively; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $5 million, or 16%, increase in depreciation and amortization expense in IC Power’s generation business’ Other segment to $37 million in 2016, from $32 million in 2015, primarily as a result of the depreciation and amortization of purchase price adjustments made in connection with IC Power’s acquisition of its distribution business in January 2016. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the recognition of $32 million in selling, general and administrative expenses in 2016, as a result of IC Power’s acquisition of its distribution business in January 2016; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $9 million, or 35%, increase in IC Power’s Other segment’s selling, general and administrative expenses, primarily as a result of expenses incurred in connection with IC Power’s withdrawn IPO, as well expenses incurred in connection with the IC Power reorganization in March 2016; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $5 million, or 28%, increase in IC Power’s Peru segment’s selling, general and administrative expenses, primarily as a result of Samay I and CDA’s respective commencements of commercial operations in August 2016 and May 2016. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a $7 million compensation payment received by Kallpa in connection with the early termination of a PPA in August 2016; |
|--|--------|------------------------------------------------------------------------------------------------------------------------|

|  | · | a $3 million payment from DEORSA’s and DEOCSA’s energy suppliers as compensation to DEORSA and DEOCSA for disruptions in their supplier’s provision of energy to DEORSA and DEOCSA; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $3 million insurance payment received in 2016 relating to the Sainani power plant in Bolivia, as the plant was temporarily out of service from March 2014 until August 2015. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                       |   | Year Ended December 31, |   |
|--------------------------------------------|--------|-------------------------|--------|
|                                       |   | 2016                    |   |   | 2015 |   |
|                                       |   | (in millions of USD)    |   |
| Sales                                 |   | $                       | 2,539  |   |   | $ | 2,991 |   |
| Cost of sales                         |   |                    | 2,480  |   |   |   | 2,775 |   |
| Gross profit                          |   |                    | 59     |   |   |   | 216 |   |
| Operating profit (loss)               |   |                    | (52    | ) |   |   | 98 |   |
| Profit (loss) before taxes on income  |   |                    | (145   | ) |   |   | 5 |   |
| Taxes on income                       |   |                    | (18    | ) |   |   | 2 |   |
| Profit (loss) after taxes on income   |   |                    | (164   | ) |   |   | 7 |   |
| Profit (loss) for the period          |   | $                       | (164   | ) |   | $ | 7 |   |

----

|                                                               |   | Year Ended December 31, |    |   |   |   |
|--------------------------------------------------------------------|--------|-------------------------|---------|--------|--------|--------|
|                                                               |   | (in millions of USD)    |    |   |   |   |
|                                                               |   | 2015                    |    |   | 20141  |   |   | % Change |   |
| Revenues from sale of electricity                             |   | $                       | 1,289   |   |   | $      | 1,372 |   |   |   | (6 | )% |
| Cost of sales and services                                    |   |                    | (863    | )      |   |   | (981 | ) |   |   | 12 | % |
| Depreciation                                                  |   |                    | (111    | )      |   |   | (100 | ) |   |   | (11 | )% |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Gross profit                                                  |   | $                       | 315     |   |   | $      | 291 |   |   |   | 8 | % |
| Selling, general and administrative expenses                  |   |                    | (104    | )      |   |   | (131 | ) |   |   | 21 | % |
| Gain from disposal of investees                               |   |                    | — |   |   |   | 157 |   |   |   | * |   |
| Asset impairment                                              |   |                    | (7      | )      |   |   | (48 | ) |   |   | 85 | % |
| Dilution gains from reduction in equity interest held in associate |   |                    | 33      |   |   |   | — |   |   |   | * |   |
| Gain on bargain purchase                                      |   |                    | — |   |   |   | 68 |   |   |   | * |   |
| Other expenses                                                |   |                    | (7      | )      |   |   | (14 | ) |   |   | (50 | )% |
| Other income                                                  |   |                    | 15      |   |   |   | 51 |   |   |   | (70 | )% |
| Gain from distribution of dividend in kind                    |   |                    | 210     |   |   |   | — |   |   |   | * |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Operating profit                                              |   | $                       | 456     |   |   | $      | 374 |   |   |   | 22 | % |
| Financing expenses                                            |   |                    | (124    | )      |   |   | (110 | ) |   |   | (11 | )% |
| Financing income                                              |   |                    | 13      |   |   |   | 16 |   |   |   | (19 | )% |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Financing expenses, net                                       |   | $                       | (111    | )      |   | $      | (94 | ) |   |   | (18 | )% |
| Share in losses of associated companies, net of tax           |   |                    | (187    | )      |   |   | (171 | ) |   |   | (9 | )% |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Profit before income taxes                                    |   | $                       | 158     |   |   | $      | 109 |   |   |   | 45 | % |
| Tax expenses                                                  |   |                    | (62     | )      |   |   | (103 | ) |   |   | 40 | % |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Profit for the year from continuing operations                |   | $                       | 96      |   |   | $      | 6 |   |   |   | * |   |
| Income for the year from discontinued operations (after taxes)     |   |                    | — |   |   |   | 471 |   |   |   | * |   |
|                                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Net Profit for the year                                            |   | $                       | 96      |   |   | $      | 477 |   |   |   | (80 | )% |
| Attributable to:                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders:                                   |   | $                       | 73      |   |   | $      | 458 |   |   |   | (85 | )% |
| Non-controlling interests                                     |   | $                       | 23      |   |   | $      | 19 |   |   |   | 21 | % |

| 1. * | During 2015, an immaterial error was identified with respect to the deferred tax calculation relating to the effect of foreign exchange rate on non-monetary assets in previous years in IC Power. Kenon’s and IC Power’s financial information for 2014, 2013 and 2012 has been revised to correct this immaterial error.Indicates that the percentage change is not meaningful. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                             |   | Year Ended December 31, 2015                     |    |
|------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                             |   | IC Power                                         |    |   | Qoros1 |   |   | Other2 |   |   | Adjustments3 |   |   | Consolidated Results |   |
|                                                             |   | (in millions of USD, unless otherwise indicated) |    |
| Sales                                                       |   | $                                                | 1,294   |   |   | $ | — |   |   | $ | — |   |   | $ | (5 | ) |   | $ | 1,289 |   |
| Depreciation and amortization                               |   |                                             | (119    | ) |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | (120 | ) |
| Asset impairment                                            |   |                                             | — |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | (7 | ) |
| Financing income                                            |   |                                             | 11      |   |   |   | — |   |   |   | 2 |   |   |   | — |   |   |   | 13 |   |
| Financing expenses                                          |   |                                             | (115    | ) |   |   | — |   |   |   | (9 | ) |   |   | — |   |   |   | (124 | ) |
| Share in (losses) income of associated companies                 |   |                                             | — |   |   |   | (196 | ) |   |   | 9 |   |   |   | — |   |   |   | (187 | ) |
| Gain from distribution of dividend in kind                  |   |                                             | — |   |   |   | — |   |   |   | 210 |   |   |   | — |   |   |   | 210 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before taxes                                  |   | $                                                | 149     |   |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 158 |   |
| Income taxes                                                |   |                                             | (62     | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (62 | ) |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                    |   | $                                                | 87      | 4  |   | $ | (196 | ) |   | $ | 205 |   |   | $ | — |   |   | $ | 96 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                            |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                  |   |                                             | 63      |   |   |   | (196 | ) |   |   | 206 |   |   |   | — |   |   |   | 73 |   |
| Non-controlling interests                                   |   |                                             | 24      |   |   |   | — |   |   |   | (1 | ) |   |   | — |   |   |   | 23 |   |
| Segment assets5                                             |   | $                                                | 4,069   |   |   | $ | — |   |   | $ | 45 | 6  |   | $ | — |   |   | $ | 4,114 |   |
| Investments in associated companies                         |   |                                             | 9       |   |   |   | 159 |   |   |   | 201 |   |   |   | — |   |   |   | 369 |   |
| Segment liabilities                                         |   |                                             | 3,063   |   |   |   | — |   |   |   | 156 | 7  |   |   | — |   |   |   | 3,219 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditure8                                        |   |                                             | 533     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 533 |   |
|                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA                                             |   | $                                                | 372     | 4,9  |   | $ | — |   |   | $ | 1 | 10  |   | $ | — |   |   | $ | 373 |   |
| Percentage of consolidated revenues                         |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets                           |   |                                             | 91      | % |   |   | 4 | % |   |   | 5 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated assets excluding associated companies |   |                                             | 99      | % |   |   | — |   |   |   | 1 | % |   |   | — |   |   |   | 100 | % |
| Percentage of consolidated Adjusted EBITDA                       |   |                                             | 100     | % |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 100 | % |

| 1. | Associated company. |
|----|---------------------|

| 2. | Includes the results of Primus and HelioFocus; the results of ZIM and Tower (up to June 30, 2015), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | “Adjustments” includes inter-segment sales. |
|----|---------------------------------------------------------|

| 4. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Excludes investments in associates. |
|----|-------------------------------------|

| 6. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 7. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 8. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 9. | For a reconciliation of IC Power’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2015, see “Item 3.A Selected Financial Data.” |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                         |   | Year Ended December 31, 20141                    |   |
|--------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                         |   | IC Power                                         |   |   | Qoros2 |   |   | Other3 |   |   | Adjustments4 |   |   | Combined Carve-Out Results |   |
|                                                         |   | (in millions of USD, unless otherwise indicated) |   |
| Sales                                                   |   | $                                                | 1,358  |   |   | $ | — |   |   | $ | — |   |   | $ | 14 |   |   | $ | 1,372 |   |
| Depreciation and amortization                           |   |                                             | (108   | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | (108 | ) |
| Financing income                                        |   |                                             | 9      |   |   |   | — |   |   |   | 39 |   |   |   | (32 | ) |   |   | 16 |   |
| Financing expenses                                      |   |                                             | (132   | ) |   |   | — |   |   |   | (10 | ) |   |   | 32 |   |   |   | (110 | ) |
| Share in (losses) income of associated companies             |   |                                             | 14     |   |   |   | (175 | ) |   |   | (10 | ) |   |   | — |   |   |   | (171 | ) |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset impairment                                        |   |                                             | (35    | ) |   |   | — |   |   |   | (13 | ) |   |   | — |   |   |   | (48 | ) |
| Gain from disposal of investee                          |   |                                             | 157    |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 157 |   |
| Gain from bargain purchase                              |   |                                             | 68     |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 68 |   |
| Income (loss) before taxes                              |   | $                                                | 321    |   |   | $ | (175 | ) |   | $ | (37 | ) |   | $ | — |   |   | $ | 109 |   |
| Income taxes                                            |   |                                             | (99    | ) |   |   | — |   |   |   | (4 | ) |   |   | — |   |   |   | (103 | ) |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                     |   | $                                                | 222    | 5  |   | $ | (175 | ) |   | $ | (41 | ) |   | $ | — |   |   | $ | 6 |   |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                        |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                              |   |                                             | 197    |   |   |   | (175 | ) |   |   | (34 | ) |   |   | — |   |   |   | (12 | ) |
| Non-controlling interests                               |   |                                             | 25     |   |   |   | — |   |   |   | (7 | ) |   |   | — |   |   |   | 18 |   |
| Segment assets6                                         |   | $                                                | 3,832  |   |   | $ | — |   |   | $ | 837 | 7  |   | $ | (785 | ) |   | $ | 3,884 |   |
| Investments in associated companies                     |   |                                             | 10     |   |   |   | 221 |   |   |   | 205 |   |   |   | — |   |   |   | 436 |   |
| Segment liabilities                                     |   |                                             | 2,860  |   |   |   | — |   |   |   | 806 | 8  |   |   | (785 | ) |   |   | 2,881 |   |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditure9                                    |   |                                             | 593    |   |   |   | — |   |   |   | 12 |   |   |   | — |   |   |   | 605 |   |
|                                                         |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA                                         |   | $                                                | 348    | 5,10  |   | $ | — |   |   | $ | (43 | )11 |   | $ | — |   |   | $ | 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 Adjusted EBITDA                  |   |                                             | 114    | % |   |   | — |   |   |   | (14 | )% |   |   | — |   |   |   | 100 | % |

| 1. | During 2015, an immaterial error was identified with respect to the deferred tax calculation relating to the effect of foreign exchange rate on non-monetary assets in previous years in IC Power. Kenon’s and IC Power’s financial information for 2014, 2013 and 2012 has been revised to correct this immaterial error. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Associated company. |
|----|---------------------|

| 3. | Includes financing income from former 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 (up to June 30, 2014), as associated companies; as well as Kenon’s and IC Green’s holding company and general and administrative expenses. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | “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.” |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | IC Power’s net income and Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2014, differ from the amounts reported by IC Power for the same period as a result of the adjustment of certain provisions at IC Power, which were adjusted in IC Power’s 2014 financial statements, but were adjusted in 2015 for Kenon. For further information, see “Item 5. Operating and Financial Review and Prospects—Material Factors Affecting Results of Operations—IC Power—Decisions by the EA Regarding System Management Charges.” |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Excludes investments in associates. |
|----|-------------------------------------|

| 7. | Includes Kenon’s and IC Green’s assets. |
|----|-----------------------------------------------------|

| 8. | Includes Kenon’s and IC Green’s liabilities. |
|----|----------------------------------------------------------|

| 9. | Includes the additions of PP&E and intangibles based on an accrual basis. |
|----|-------------------------------------------------------------------------------|

| 10. | For a reconciliation of IC Power’s net income, as reported by Kenon, to its Adjusted EBITDA, as reported by Kenon, for the year ended December 31, 2014, see “Item 3.A Selected Financial Data.” |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | For a reconciliation of our “Other” reporting segment’s income (loss) to its Adjusted EBITDA, see “Item 3.A Selected Financial Data.” |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                       |   | Year EndedDecember 31, |    |   | Six Months Ended December 31, |   |    | Year EndedDecember 31, |   |
|----------------------------------------------------------------------------|--------|------------------------|---------|--------|-------------------------------|--------|---------|------------------------|--------|
|                                                                       |   | 2015                   |    |   | 2014                          |   |    | 2014                   |   |
|                                                                       |   | ZIM                    |    |   | Qoros                         |   |    | Tower1                 |   |   | ZIM |   |   | Qoros |   |   | Tower |   |   | Generandes2 |   |
|                                                                       |   | (in millions of USD)   |    |
| Revenues                                                                   |   | $                      | 2,991   |   |                          | $      | 232     |                   |   | $ | 462 |   |   | $ | 1,667 |   |   | $ | 138 |   |   | $ | 828 |   |   | $ | 193 |   |
| Income/(Loss)                                                         |   |                   | 2       |   |                          |   | (392    | )                      |   |   | (1 | ) |   |   | (72 | ) |   |   | (350 | ) |   |   | 25 |   |   |   | 30 |   |
| Other comprehensive income/(loss)                                          |   |                   | (2      | )      |                          |   | — |                   |   |   | — |   |   |   | 2 |   |   |   | — |   |   |   | (9 | ) |   |   | — |   |
|                                                                       |   |                   |    |   |                          |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income/(loss)                                          |   | $                      | — |   |                          | $      | (392    | )                      |   | $ | (1 | ) |   | $ | (70 | ) |   | $ | (350 | ) |   | $ | 16 |   |   | $ | 30 |   |
|                                                                       |   |                   |    |   |                          |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of Kenon in total comprehensive income/(loss)                        |   | $                      | — |   |                          | $      | (196    | )                      |   | $ | — |   |   | $ | (23 | ) |   | $ | (175 | ) |   | $ | 5 |   |   | $ | 12 |   |
| Adjustments                                                           |   |                   | 10      |   |                          |   | — |                   |   |   | (1 | ) |   |   | 10 |   |   |   | — |   |   |   | 13 |   |   |   | — |   |
|                                                                       |   |                   |    |   |                          |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of Kenon in total comprehensive income/(loss) presented in the books |   | $                      | 10      |   |                          | $      | (196    | )                      |   | $ | (1 | ) |   | $ | (13 | ) |   | $ | (175 | ) |   | $ | 18 |   |   | $ | 12 |   |
|                                                                       |   |                   |    |   |                          |   |    |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends received                                                    |   | $                      | — |   |                          | $      | — |                   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 12 |   |
| Total assets                                                          |   | $                      | 1,912   |   |                          | $      | 1,665   |                   |   | $ | — |   |   | $ | 2,156 |   |   | $ | 1,810 |   |   | $ | 874 |   |   | $ | — |   |
| Total liabilities                                                     |   |                   | 1,834   |   |                          |   | 1,635   |                   |   |   | — |   |   |   | (2,077 | ) |   |   | (1,670 | ) |   |   | (738 | ) |   |   | — |   |
| Book value of investment                                              |   |                   | 201     |   |                          |   | 159     |                   |   |   | — |   |   |   | 191 |   |   |   | 221 |   |   |   | 14 |   |   |   | — |   |

| 1. | Reflects Tower’s results of operations up to June 30, 2015. As a result of our distribution in specie of substantially all of our interest in Tower, representing 23% of the then currently outstanding Tower shares on July 23, 2015, Tower’s results of operations for all periods subsequent to June 30, 2015 are not reflected in our consolidated financial statements. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Kenon’s indirect equity interest in Generandes was sold in September 2014, in connection with IC Power’s sale of its interest in Enel Generación Perú. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a $9 million increase in transmission charges as a result of an increase in toll tariffs during 2015; and |
|--|--------|-----------------------------------------------------------------------------------------------------------|

|  | · | a $5 million increase in intermediation fees as a result of new PPAs signed during 2015 with distribution companies in which the profit of the PPA is shared with the distribution company. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | a $4 million or 9%, increase in IC Power’s Peru segment’s depreciation expense to $49 million in 2015 from $45 million in 2014, primarily as a result of the acquisition of Las Flores in April 2014; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $3 million, or 17%, increase in IC Power’s Central America segment’s depreciation expense to $21 million in 2015 from $18 million in 2014, primarily as a result of IC Power’s consolidation of ICPNH and Puerto Quetzal in March and September 2014, respectively; and |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a $3 million, or 14%, increase in IC Power’s Other segment’s depreciation expense to $25 million in 2015 from $22 million in 2014, primarily as a result of IC Power’s consolidation of JPPC in May 2014. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | ICPNH in March 2014, which resulted in IC Power’s recognition of a gain of $24 million; |
|--|--------|-----------------------------------------------------------------------------------------------|

|  | · | the 84% of the outstanding equity of JPPC which IC Power did not previously own, in May 2014, resulting in IC Power’s recognition of a gain of $24 million; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Puerto Quetzal in September 2014, which resulted in IC Power’s recognition of a gain of $20 million. |
|--|--------|------------------------------------------------------------------------------------------------------------|

|  | · | $4 million related to the loss on sale of property, plant and equipment, net; and |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | a $1 million provision for contingencies. |
|--|--------|-------------------------------------------|

|  | · | $8 million related to the loss on sale of property, plant and equipment, net; and |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | $2 million related to a net loss on sale of spare parts. |
|--|--------|----------------------------------------------------------|

|  | · | $7 million related to insurance claims, primarily related to Amayo II’s claims in respect of three wind turbines, which were damaged in December 2014; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | $4 million in dividend income from Enel Generación Perú; and |
|--|--------|------------------------------------------------------------------------|

----

|  | · | $4 million in other income. |
|--|--------|-----------------------------|

|  | · | $18 million in dividend income from Enel Generación Perú; |
|--|--------|---------------------------------------------------------------------|

|  | · | $20 million resulting from changes in Kenon’s interests in Tower as a result of an increase in Tower’s outstanding share capital due to the conversion and exercise of certain of Tower’s outstanding convertible bonds, options and warrants. As a result of Tower’s issuance of shares in connection with such conversions and exercises, our interest in Tower declined from approximately 32% as of December 31, 2013 to approximately 29% as of December 31, 2014, resulting in our recognition of a $20 million dilution gain, which was determined by calculating the difference between the carrying amounts of our investment in Tower immediately before and after the relevant share issuances; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | $7 million related to insurance claims, primarily related to Amayo II’s claims in respect of three wind turbines, which were damaged in December 2014. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | Year EndedDecember 31, 2015 |   |
|-------------------------------------|--------|-----------------------------|--------|
|                                |   | (in millions of USD)        |   |
| Sales                          |   | $                           | 2,991  |   |
| Cost of sales                  |   |                        | 2,775  |   |
| Gross profit                   |   |                        | 216    |   |
| Operating profit               |   |                        | 98     |   |
| Profit before taxes on income  |   |                        | 5      |   |
| Taxes on income                |   |                        | 2      |   |
| Profit after taxes on income   |   |                        | 7      |   |
| Profit for the period          |   | $                           | 7      |   |

----

----

|                                                                          |   | Year Ended December 31, |   |
|-------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                          |   | 2016                    |   |   | 2015 |   |
|                                                                          |   | (in millions of USD)    |   |
| Net cash flows provided by operating activities                               |   |                    |   |   |   |   |
| IC Power                                                                 |   |                    | 186    |   |   |   | 320 |   |
| Adjustments and Other                                                    |   |                    | (24    | ) |   |   | (30 | ) |
| Total                                                                    |   |                    | 162    |   |   |   | 290 |   |
| Net cash flows used in investing activities                              |   |                    | (400   | ) |   |   | (737 | ) |
| Net cash flows provided by financing activities                          |   |                    | 175    |   |   |   | 233 |   |
| Net change in cash in period                                             |   |                    | (63    | ) |   |   | (214 | ) |
| Cash—opening balance                                               |   |                    | 384    |   |   |   | 610 |   |
| Effect of exchange rate fluctuations on balances of cash and cash equivalents |   |                    | 6      |   |   |   | (12 | ) |
|                                                                          |   |                    |   |   |   |   |   |   |
| Cash—closing balance                                               |   | $                       | 327    |   |   | $ | 384 |   |

----

|                                                                          |   | Year Ended December 31, |   |
|-------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                          |   | 2015                    |   |   | 2014 |   |
|                                                                          |   | (in millions of USD)    |   |
| Net cash flows provided by operating activities                               |   |                    |   |   |   |   |
| IC Power                                                                 |   |                    | 320    |   |   |   | 413 |   |
| Adjustments and Other                                                    |   |                    | (30    | ) |   |   | (3 | ) |
| Total                                                                    |   |                    | 290    |   |   |   | 410 |   |
| Net cash flows used in investing activities                              |   |                    | (737   | ) |   |   | (883 | ) |
| Net cash flows provided by financing activities                          |   |                    | 233    |   |   |   | 430 |   |
| Net change in cash in period                                             |   |                    | (214   | ) |   |   | (42 | ) |
| Cash—opening balance                                               |   |                    | 610    |   |   |   | 671 |   |
| Effect of exchange rate fluctuations on balances of cash and cash equivalents |   |                    | (12    | ) |   |   | (19 | ) |
|                                                                          |   |                    |   |   |   |   |   |   |
| Cash—closing balance                                               |   | $                       | 384    |   |   | $ | 610 |   |

----

----

|  | · | 66% of the shares of ICP; |
|--|--------|---------------------------|

|  | · | 66% of the shares of IC Power; and |
|--|--------|------------------------------------|

|  | · | the $145 million note owing from IC Power to Kenon entered into in connection with the reorganization of IC Power. |
|--|--------|--------------------------------------------------------------------------------------------------------------------|

----

|                            |  Timing               |  Amount of Loans to Qoros |  Amount of Guarantee Obligations Prior to Loan |  Release of Kenon Guarantees to Chery       |  Remaining Guarantee Obligations Post-Loan |
|---------------------------------|----------------------------|--------------------------------|-----------------------------------------------------|--------------------------------------------------|-------------------------------------------------|
| December 2016 Shareholder Loans | Completed in December 2016 | RMB250 million                 | RMB1,100 million (plus interest and fees)           | RMB250 million (plus certain interest and fees)1 | RMB825 million (plus certain interest and fees) |
| First Tranche Loans             | Completed in March 2017    | RMB388.5 million               | RMB850 million (plus interest and fees)1            | RMB425 million (plus certain interest and fees)  | RMB425 million (plus certain interest and fees) |
| Second Tranche Loans            | To be determined           | RMB388.5 million               | RMB425 million (plus certain interest and fees)1    | RMB425 million (plus certain interest and fees)  | —                                         |
| Total                           |                       | RMB1,027 million               | —                                             | RMB1,100 million (plus interest and fees)        | —                                         |

----

----

|                                                            |   | Year Ended December 31, |   |
|-----------------------------------------------------------------|--------|-------------------------|--------|
|                                                            |   | 2016                    |   |   | 2015 |   |
|                                                            |   | ($ millions)            |   |
| Net cash flows provided by operating activities            |   | $                       | 186    |   |   | $ | 320 |   |
| Net cash flows used in investing activities                |   |                    | (270   | ) |   |   | (621 | ) |
| Net cash flows (used in)/provided by financing activities  |   |                    | (62    | ) |   |   | 88 |   |
| Net change in cash in period                               |   |                    | (146   | ) |   |   | (213 | ) |
| Cash—opening balance                                 |   |                    | 360    |   |   |   | 583 |   |
| Effect of exchange rate on the cash                        |   |                    | 5      |   |   |   | (10 | ) |
|                                                            |   |                    |   |   |   |   |   |   |
| Cash—closing balance                                      |   | $                       | 219    |   |   | $ | 360 |   |

----

|  | · | $350 million from the May 2016 issuance of Kallpa bonds; |
|--|--------|----------------------------------------------------------|

|  | · | $100 million borrowed under the Overseas Facility; |
|--|--------|----------------------------------------------------|

|  | · | $55 million borrowed under the Kanan Credit Facility; |
|--|--------|-------------------------------------------------------|

|  | · | $44 million borrowed under the CDA Finance Facility; |
|--|--------|------------------------------------------------------|

|  | · | $24 million borrowed under the DEOCSA Syndicated Loan Facility; |
|--|--------|-----------------------------------------------------------------|

|  | · | $20 million borrowed under the Samay I Finance Facility; |
|--|--------|----------------------------------------------------------|

|  | · | $22 million from the issuance of the COBEE Bonds; |
|--|--------|---------------------------------------------------|

|  | · | $16 million borrowed under the DEORSA Syndicated Loan Facility; and |
|--|--------|---------------------------------------------------------------------|

|  | · | $12 million borrowed under the Puerto Quetzal Finance Facility. |
|--|--------|-----------------------------------------------------------------|

----

|  | · | $138 million borrowed under the Samay I Finance Facility; |
|--|--------|-----------------------------------------------------------|

|  | · | $85 million borrowed under the CDA Finance Facility; |
|--|--------|------------------------------------------------------|

|  | · | $6 million from the investment of Energía del Pacífico in CDA and the investment of the minority partner in Surenergy; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | · | $3 million borrowed under Tipitapa Power’s loan agreement. |
|--|--------|------------------------------------------------------------------|

|                                                  |   | Year Ended December 31, |   |
|-------------------------------------------------------|--------|-------------------------|--------|
|                                                  |   | 2015                    |   |   | 2014 |   |
|                                                  |   | ($ millions)            |   |
| Net cash flows provided by operating activities  |   | $                       | 320    |   |   | $ | 413 |   |
| Net cash flows used in investing activities      |   |                    | (621   | ) |   |   | (378 | ) |
| Net cash flows provided by financing activities  |   |                    | 88     |   |   |   | 47 |   |
| Net change in cash in period                     |   |                    | (213   | ) |   |   | 82 |   |
| Cash—opening balance                       |   |                    | 583    |   |   |   | 517 |   |
| Effect of exchange rate on the cash              |   |                    | (10    | ) |   |   | (16 | ) |
|                                                  |   |                    |   |   |   |   |   |   |
| Cash—closing balance                            |   | $                       | 360    |   |   | $ | 583 |   |

----

|  | · | $138 million borrowed under the Samay I Finance Facility; |
|--|--------|-----------------------------------------------------------|

|  | · | $85 million borrowed under the CDA Finance Facility; |
|--|--------|------------------------------------------------------|

|  | · | $3 million borrowed under Tipitapa Power’s loan agreement; and |
|--|--------|----------------------------------------------------------------------|

|  | · | $6 million from the investment of Energía del Pacífico in CDA and the investment of the minority partner in Surenergy. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------|

|  | · | $319 million borrowed under the CDA Finance Facility; |
|--|--------|-------------------------------------------------------|

|  | · | $153 million borrowed under the Samay I Finance Facility; |
|--|--------|-----------------------------------------------------------|

|  | · | $93 million borrowed under ICPI’s credit facility; |
|--|--------|----------------------------------------------------------|

|  | · | $43 million from the issuance of the COBEE bonds; |
|--|--------|---------------------------------------------------|

|  | · | $25 million from the issuance of the CEPP bonds; |
|--|--------|--------------------------------------------------|

|  | · | $23 million borrowed under Colmito’s credit facility; |
|--|--------|-------------------------------------------------------------|

|  | · | $2 million borrowed under Tipitapa Power’s loan agreement; and |
|--|--------|----------------------------------------------------------------------|

|  | · | $20 million from the investment of Energía del Pacífico in Samay I. |
|--|--------|-------------------------------------------------------------------------------|

----

|                            |   | OutstandingPrincipal Amount as of December 31,2016 |   |    | Interest Rate |                  |   | Final Maturity |               | Amortization Schedule |
|---------------------------------|--------|----------------------------------------------------|--------|---------|---------------|-----------------------|--------|----------------|--------------------|----------------------------|
|                            |   | ($ millions)                                       |   |    |          |                  |   |           |               |             |
| Inkia:                          |   |                                               |   |    |          |                  |   |           |               |        |
| Inkia notes                |   |                                               | 448    |    |          | 8.375%                |        |           | April 2021         |                       | Bullet payment at final maturity |
| IC Power Asia Development Ltd:  |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Bank Hapoalim New York     |   |                                               | 12     |    |          | 0.75%                 |   |           | 2019               |                       | Bullet payment at final maturity |
| OPC:                            |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Financing agreement1  |   |                                               | 365    | 2  |          | 4.85%-5.36%           |   |           | July 2031          |                       | Quarterly principal payments to maturity |
| ICPDH:                          |   |                                               |   |    |          |                  |   |           |               |                       |      |
| ICPDH credit agreement     |   |                                               | 119    |    |          | LIBOR+4.00%           |   |           | June 2017          |                       | Bullet payment at final maturity |
| IC Power Israel3:               |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Tranche B                  |   |                                               | 52     |    |          | 7.75%                 |   |           | 2029               |                       | Annual principal payments to maturity |
| Cerro del Águila:          |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Tranche A                  |   |                                               | 336    |    |          | LIBOR+4.25% -5.50%    |   |           | August 2024        |                       | Quarterly principal payments to maturity |
| Tranche B                  |   |                                               | 181    |    |          | LIBOR+4.25% - 6.25%   |   |           | August 2024        |                       | Bullet payment at final maturity |
| Tranche D1                 |   |                                               | 40     |    |          | LIBOR+2.75% -3.60%    |   |           | August 2024        |                       | Quarterly principal payments to maturity |
| Tranche D2                 |   |                                               | 22     |    |          | LIBOR+2.75% - 3.60%   |   |           | August 2027        |                       | Quarterly principal payments commencing in May 2024 to maturity |
| Samay I:                        |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Samay I Finance Facility   |   |                                               | 307    |    |          | LIBOR+2.125% - 2.625% |   |           | December 2021      |                       | 29% of principal to be paid in 23 quarterly payments to maturity 71% of principal to be paid in bullet payment at final maturity |
| Kallpa:                         |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Las Flores lease           |   |                                               | 88     |    |          | 7.15%                 |   |           | October 2023       |                       | Quarterly principal payments to maturity |
| Kallpa notes due 2026      |   |                                               | 326    |    |          | 4.875%                |   |           | May 2026           |                       | Bullet payment at final maturity |
| Overseas Investments Peru       |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Overseas Facility          |   |                                               | 97     |    |          | Various               |   |           | November 2017      |                       | Bullet payment at final maturity |
| COBEE:                          |   |                                               |   |    |          |                  |   |           |               |                       |      |
| COBEE III bonds            |   |                                               | 20     |    |          | Various               |   |           | Various            |                       | Series B: semi-annual principal payments until maturitySeries C: Semi-annual principal payments commencing in February 2017First additional series of notes: bullet payment at final maturitySeries additional series of notes: semi-annual principal payments to maturity |
| COBEE IV bonds             |   |                                               | 60     |    |          | Various               |   |           | Various            |                       | Series A: bullet payment at final maturitySeries B: 4 semi-annual principal payments commencing in July 2018Series C: 8 semi-annual principal payments commencing in July 2020 |
| COBEE bonds premium             |   |                                               | 4      |    |          | Various               |   |           | 2017-2024          |                       | Various |
| CEPP:                           |   |                                               |   |    |          |                  |   |           |               |                       |      |
| CEPP bonds                 |   |                                               | 10     |    |          | 6.00%                 |   |           | January-March 2019 |                       |  Bullet payment at final maturity |
| Central Cardones:               |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Tranche 1                  |   |                                               | 22     |    |          | LIBOR+1.90%           |   |           | August 2021        |                       | Semi-annual principal payments to maturity |
| Tranche 2                  |   |                                               | 13     |    |          | LIBOR+2.75%           |   |           | August 2021        |                       | Bullet payment at final maturity |
| Colmito:                        |   |                                               |   |    |          |                  |   |           |               |                       |      |
| Banco Bice                 |   |                                               | 17     |    |          | 7.9%                  |        |           | December 2028      |                       | Semi-annual principal payments to maturity |

----

|                                                     |   | OutstandingPrincipal Amount as of December 31,2016 |   |    | Interest Rate |                               |   | Final Maturity |           |     Amortization Schedule |
|----------------------------------------------------------|--------|----------------------------------------------------|--------|---------|---------------|------------------------------------|--------|----------------|----------------|----------------------------------------------------|
| JPPC:                                                    |   |                                               |   |    |          |                               |   |           |           |            |
| Royal Bank of Canada                                |   |                                               | 1      |    |          | LIBOR+5.5%                         |   |           | March 2017     |                                               | Quarterly principal payments to maturity |
| Burmeister & Wain Scandinavian Contractor  |   |                                               | 1      |    |          | 3.59%                              |   |           | August 2018    |                                               | Monthly principal payments to maturity |
| ICPNH:                                                   |   |                                               |   |    |          |                               |   |           |           |                                               |          |
| Amayo I                                             |   |                                               | 43     |    |          | Various                            |   |           | February 2023  |                                               | Quarterly principal payments to maturity |
| Amayo II                                            |   |                                               | 31     |    |          | Various                            |   |           | September 2025 |                                               | Quarterly principal payments to maturity |
| Tipitapa Power                                      |   |                                               | 6      |    |          | 8.35%                              |   |           | November 2018  |                                               | Quarterly principal payments to maturity |
| Corinto                                             |   |                                               | 7      |    |          | 8.35%                              |   |           | December 2018  |                                               | Quarterly principal payments to maturity |
| Puerto Quetzal:                                          |   |                                               |   |    |          |                               |   |           |           |                                               |          |
| Banco Industrial                                    |   |                                               | 12     |    |          | LIBOR+4.5%                         |   |           | December 2021  |                                               | Quarterly principal payments to maturity |
| Kanan:                                                   |   |                                               |   |    |          |                               |   |           |           |                                               |          |
| Kanan Credit Facility                               |   |                                               | 46     |    |          | LIBOR+3.00% (with a floor of 3.50% |   |           | March 2021     |                                               | Quarterly principal payments to maturity |
| DEORSA:                                                  |   |                                               |   |    |          |                               |   |           |           |                                               |          |
| Syndicated loan                                     |   |                                               | 113    | 4  |          | Various                            |   |           | 2021-2025      |                                               | Quarterly principal payments to maturity |
| DEOCSA:                                                  |   |                                               |   |    |          |                               |   |           |           |                                               |          |
| Syndicated loan                                     |   |                                               | 174    | 5  |          | Various                            |   |           | 2021-2025      |                                               | Quarterly principal payments to maturity |
| RECSA:                                                   |   |                                               |   |    |          |                               |   |           |           |                                               |          |
| Banco G&T Continental                           |   |                                               | 5      |    |          | TAPP-6.63%                         |   |           | 2020           |                                               | Semi-annual principal payments to maturity |
| Short Term Loans from Banks                         |   |                                               | 94     |    |          | Various                            |   |           | 2017           |                                               | These loans have no amortization schedule |
|                                                     |   |                                               |   |    |          |                               |   |           |           |                                               |            |
| Total                                               |   |                                               | 3,072  |    |          |                               |   |           |           |                                               |        |

----

| 1. | The consortium includes Bank Leumi Le-Israel B.M. and institutional entities from the following groups: Clal Insurance Company Ltd.; Amitim Senior Pension Funds; Phoenix Insurance Company Ltd.; and Harel Insurance Company Ltd. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Represents NIS 1,402 million converted into U.S. Dollars at the exchange rate for New Israeli Shekels into U.S. Dollars of NIS 3.841 to $1.00. All debt has been issued in Israeli currency (NIS) linked to CPI. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | The mezzanine financing agreement also includes a Tranche C, pursuant to which up to NIS 350 million, at an interest rate of 11% per annum, may be drawn, subject to certain conditions, and only to cover shortfall amounts. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Includes 275 million Guatemalan Quetzales, the aggregate principal amount of Guatemalan Quetzales-denominated loans outstanding under the syndicated loan facility, converted into U.S. Dollars at the exchange rate for Guatemalan Quetzales into U.S. Dollars of 7.52 to $1.00 as reported by the Central Bank of Guatemala on December 31, 2016. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Includes 383 million Guatemalan Quetzales, the aggregate principal amount of Guatemalan Quetzales-denominated loans outstanding under the syndicated loan facility, converted into U.S. Dollars at the exchange rate for Guatemalan Quetzales into U.S. Dollars of 7.52 to $1.00 as reported by the Central Bank of Guatemala on December 31, 2016. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  | · | pledges of CDA’s movable assets and offshore and onshore collateral accounts; |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | a pledge of 100% of the equity interests in CDA; |
|--|--------|--------------------------------------------------|

|  | · | mortgages of the CDA plant and CDA’s generation and transmission concessions; |
|--|--------|-------------------------------------------------------------------------------------|

|  | · | a collateral assignment of insurances and reinsurances in respect of CDA; and |
|--|--------|-------------------------------------------------------------------------------|

|  | · | a conditional assignment of CDA’s rights under certain contracts, including the CDA EPC contract and CDA’s PPAs. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | 90-day LIBOR plus 5.00% (for the period from the funding date to the 6-month anniversary of the funding date); |
|--|--------|----------------------------------------------------------------------------------------------------------------|

|  | · | 90-day LIBOR plus 5.75% (for the period from one day after the 6-month anniversary of the funding date to the 12 month anniversary of the funding date); and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | 90-day LIBOR plus 6.50% for any period thereafter. |
|--|--------|----------------------------------------------------|

----

----

----

----

|  | · | in January and February 2016, Kenon made loans to Qoros of RMB275 million, using cash on hand and drawdowns under the IC Credit Facility; Chery provided RMB275 million shareholder loans on similar conditions as well; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | in May, June and September 2016, Ansonia, which owns approximately 58% of the outstanding shares of Kenon, provided our wholly-owned subsidiary Quantum with loans of approximately $72 million, which Quantum used to make back-to-back loans to Qoros in an aggregate principal amount of RMB450 million. Wuhu Chery provided loans to Qoros in the same amount. Kenon did not make any loans or other investments in Qoros as part of these transactions; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | in December 2016, Kenon and Chery each provided shareholder loans of RMB250 million to Qoros. In addition, in connection with these shareholder loans, Kenon’s major shareholder Ansonia committed to fund RMB25 million of Kenon’s remaining back-to-back guarantee obligations to Chery in certain circumstances. As a result, the maximum amount of Kenon’s exposure with respect to its back-to-back guarantee obligations to Chery was reduced by RMB275 million to RMB825 million. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

|                                                         |   | Payments Due by Period |   |
|--------------------------------------------------------------|--------|------------------------|--------|
|                                                         |   | Total                  |   |   | Less than One Year |   |   | One toThree Years |   |   | Three to Five Years |   |   | More than Five Years |   |
|                                                         |   | ($ millions)           |   |
| Kenon’s stand-alone contractual obligations1,2    |   | $                      | 224    |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 224 |   |
| IC Power’s consolidated contractual obligations3  |   | $                      | 8,492  |   |   | $ | 1,611 |   |   | $ | 968 |   |   | $ | 1,580 |   |   | $ | 4,333 |   |
|                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total contractual obligations and commitments           |   | $                      | 8,716  |   |   | $ | 1,611 |   |   | $ | 968 |   |   | $ | 1,580 |   |   | $ | 4,557 |   |

----

| 1. | Represents $200 million, plus interest and fees of $24 million, outstanding under the IC Credit Facility as of December 31, 2016. |
|----|-----------------------------------------------------------------------------------------------------------------------------------|

| 2. | Excludes Kenon's back-to-back guarantees to Chery and convertible loans between Ansonia and Quantum. |
|----|------------------------------------------------------------------------------------------------------|

| 3. | For further information on IC Power’s consolidated contractual obligations, see “—Tabular Disclosure of Contractual Obligations—IC Power” below. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                           |   | Payments Due by Period |   |
|----------------------------------------------------------------|--------|------------------------|--------|
|                                                           |   | Total                  |   |   | Less than One Year |   |   | One to Three Years |   |   | Three to Five Years |   |   | More than Five Years |   |
|                                                           |   | ($ millions)           |   |
| Credit from banks and others                              |   | $                      | 220    |   |   | $ | 220 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Loans from banks and others, debentures, and lease agreements1 |   |                   | 2,467  |   |   |   | 341 |   |   |   | 228 |   |   |   | 977 |   |   |   | 921 |   |
| Trade payables                                            |   |                   | 329    |   |   |   | 285 |   |   |   | 10 |   |   |   | 22 |   |   |   | 12 |   |
| Other payables and credit balances                        |   |                   | 57     |   |   |   | 57 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase obligations2                                     |   |                   | 4,431  |   |   |   | 221 |   |   |   | 433 |   |   |   | 547 |   |   |   | 3,230 |   |
| Operating and maintenance agreements3                     |   |                   | 832    |   |   |   | 358 |   |   |   | 274 |   |   |   | 34 |   |   |   | 166 |   |
| Obligations under EPC Contract Retirement4                |   |                   | 156    |   |   |   | 129 |   |   |   | 23 |   |   |   | - |   |   |   | 4 |   |
|                                                           |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total contractual obligations and commitments             |   | $                      | 8,492  |   |   | $ | 1,611 |   |   | $ | 968 |   |   | $ | 1,580 |   |   | $ | 4,333 |   |

----

| 1. | Consists of estimated future payments of principal, interest and premium on loans from banks and others, debentures, and lease agreements, calculated based on interest rates and foreign exchange rates applicable as of December 31, 2016 and assuming that all principal payments and payments at maturity on loans from banks and others, debentures, and lease agreements, will be made on their scheduled payment dates. Also includes the interest rate swaps relating to these obligations, which are calculated based on the LIBOR interest rate set forth in the applicable interest rate swap contract plus the applicable fixed spread. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Consists of purchase commitments for natural gas and gas transportation pursuant to binding obligations which include all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Based upon the applicable purchase prices as of December 31, 2016. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Consists of future payments to be made under services contract with Siemens based on its projections of the hours of service of Kallpa’s turbines. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Consists of future payments to be made under EPC contract, assuming that all progress and completion payments will be made on their scheduled payment dates. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Payments Due by Period |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   | Total                  |   |   | Less Than One Year1,2 |   |   | One to Two Years2 |   |   | Two to Five Years |   |   | More than Five Years |   |
|                                |   | (in millions of RMB)   |   |
| Loans and borrowings3          |   |                   | 7,870  |   |   |   | 2,881 |   |   |   | 853 |   |   |   | 2,646 |   |   |   | 1,490 |   |
| Trade and other payables       |   |                   | 2,810  |   |   |   | 2,685 |   |   |   | 21 |   |   |   | 104 |   |   |   | — |   |
|                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total contractual obligations  |   |                   | 10,680 |   |   |   | 5,566 |   |   |   | 874 |   |   |   | 2,750 |   |   |   | 1,490 |   |

----

| 1. | Includes principal of RMB194 million, which was repaid by Qoros in January 2017. |
|----|----------------------------------------------------------------------------------|

| 2. | Qoros’ lenders have agreed to reschedule principal payments under the RMB3 billion and RMB1.2 billion scheduled to occur in 2017 and 2018, with principal payments scheduled to occur between 2019 and 2022 (in the case of the RMB3 billion facility) and between 2019 and 2024 (in the case of the RMB1.2 billion facility). |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Includes RMB1.4 billion of shareholder loans as of December 31, 2016. |
|----|-----------------------------------------------------------------------|

----

| Name                    |   | Age |   | Function                                                                     |   | Term Begins |   | Term Expires |
|-------------------------|--------|-----|--------|------------------------------------------------------------------------------|--------|-------------|--------|--------------|
| Antoine Bonnier         |   | 34  |   | Board Member                                                                 |   | 2016        |   | 2017         |
| Laurence N. Charney     |   | 70  |   | Chairman of the Audit Committee, Compensation Committee Member               |   | 2016        |   | 2017         |
| Cyril Pierre-Jean Ducau |   | 37  |   | Chairman of the Board, Nominating and Corporate Governance Committee Member  |   | 2016        |   | 2017         |
| N. Scott Fine           |   | 59  |   | Audit Committee Member, Compensation Committee Member                        |   | 2016        |   | 2017         |
| Aviad Kaufman           |   | 46  |   | Compensation Committee Member                                                |   | 2016        |   | 2017         |
| Vikram Talwar           |   | 67  |   | Audit Committee Member, Nominating and Corporate Governance Committee Member |   | 2016        |   | 2017         |

| Name         |   | Age |   | Position                                                      |
|--------------|--------|-----|--------|---------------------------------------------------------------|
| Yoav Doppelt |   | 47  |   | Chief Executive Officer                                       |
| Robert Rosen |   | 44  |   | General Counsel                                               |
| Tzahi Goshen |   | 41  |   | Chief Financial Officer                                       |
| Barak Cohen  |   | 35  |   | Vice President of Business Development and Investor Relations |

----

----

----

|  | · | the quality and integrity of our financial statements and internal controls; |
|--|--------|------------------------------------------------------------------------------|

|  | · | the appointment, compensation, retention, qualifications and independence of our independent registered public accounting firm; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------|

|  | · | the performance of our internal audit function and independent registered public accounting firm; |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | our compliance with legal and regulatory requirements; and |
|--|--------|------------------------------------------------------------|

|  | · | related party transactions. |
|--|--------|-----------------------------|

----

|  | · | reviewing and determining the compensation package for our Chief Executive Officer and other senior executives; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | reviewing and making recommendations to our board with respect to the compensation of our non-employee directors; |
|--|--------|-------------------------------------------------------------------------------------------------------------------|

|  | · | reviewing and approving corporate goals and objectives relevant to the compensation of our Chief Executive Officer and other senior executive, including evaluating their performance in light of such goals and objectives; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | reviewing periodically and approving and administering stock options plans, long-term incentive compensation or equity plans, programs or similar arrangements, annual bonuses, employee pension and welfare benefit plans for all employees, including reviewing and approving the granting of options and other incentive awards. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | Number of Employees as of December 31, |   |
|----------------|--------|----------------------------------------|--------|
| Company        |   | 2016                                   |   |   | 2015 |   |   | 2014 |   |
| IC Power  |   |                                   | 2,069  |   |   |   | 1,309 |   |   |   | 1,326 |   |
| Primus    |   |                                   | 31     |   |   |   | 41 |   |   |   | 45 |   |
| Kenon     |   |                                   | 5      |   |   |   | 11 |   |   |   | 8 |   |
| Total     |   |                                   | 2,105  |   |   |   | 1,361 |   |   |   | 1,379 |   |

----

----

| Beneficial Owner (Name/Address)         |   | OrdinaryShares Owned |       |   | Percentage ofOrdinary Shares |   |
|-----------------------------------------|--------|----------------------|------------|--------|------------------------------|--------|
| Ansonia Holdings Singapore B.V.1   |   |                 | 31,156,869 |   |                         |   | 58.0 | % |
| XT Investments Ltd.2               |   |                 | 5,727,128  |   |                         |   | 10.7 | % |
| Laurence N. Charney3                    |   |                 | 9,656      |   |                         |   | — | 4  |
| N. Scott Fine3                          |   |                 | 5,652      |   |                         |   | — | 4  |
| Vikram Talwar3                          |   |                 | 2,952      |   |                         |   | — | 4  |
| Directors and Executive Officers5  |   |                 | —    |   |                         |   | — | 4  |

----

| 1. | Based solely on the Schedule 13 D/A (Amendment No. 4) filed by Ansonia Holdings Singapore B.V. with the SEC on January 25, 2017. A discretionary trust, in which Mr. Idan Ofer is the prime beneficiary, indirectly holds 100% of Ansonia Holdings Singapore B.V. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Based solely upon the Schedule 13 D/A (Amendment No. 1) filed by XT Investments Ltd. and XT Holdings Ltd. with the SEC on January 12, 2016. XT Investments Ltd. is a direct wholly-owned subsidiary of XT Holdings Ltd., of which each of Orona Investments Ltd. and Lynav Holdings Ltd. is the direct owner of 50% of the outstanding ordinary shares. Orona Investments Ltd. is indirectly controlled by Mr. Ehud Angel. Lynav Holdings Ltd. is controlled by a discretionary trust in which Mr. Idan Ofer is a prime beneficiary. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based solely on Exhibit 99.3 to the Form 6-K furnished by Kenon with the SEC on June 3, 2016. |
|----|-----------------------------------------------------------------------------------------------|

| 4. | Owns less than 1% of Kenon’s ordinary shares. |
|----|-----------------------------------------------------|

| 5. | Excludes shares held by Laurence N. Charney, N. Scott Fine and Vikram Talwar. |
|----|-------------------------------------------------------------------------------|

----

----

|                                                       |   | Price per ordinary share($) |   |
|------------------------------------------------------------|--------|-----------------------------|--------|
|                                                       |   | High                        |   |   | Low |   |
| Annual:                                                    |   |                        |   |   |   |   |
| Year ended December 31, 2015 (since January 6, 2015)  |   |                        | 22.13  |   |   |   | 9.66 |   |
| Year ended December 31, 2016                          |   |                        | 12.02  |   |   |   | 7.40 |   |
| Quarterly:                                                 |   |                        |   |   |   |   |   |   |
| Three months ended June 30, 2015                      |   |                        | 22.13  |   |   |   | 19.26 |   |
| Three months ended September 30, 20151                |   |                        | 21.10  |   |   |   | 13.19 |   |
| Three months ended December 31, 2015                  |   |                        | 14.67  |   |   |   | 9.66 |   |
| Three months ended March 31, 2016                     |   |                        | 9.80   |   |   |   | 7.46 |   |
| Three months ended June 30, 2016                      |   |                        | 10.90  |   |   |   | 7.40 |   |
| Three months ended September 30, 2016                 |   |                        | 12.02  |   |   |   | 9.57 |   |
| Three months ended December 31, 2016                  |   |                        | 11.70  |   |   |   | 8.81 |   |
| Three months ended March 31, 2017                     |   |                        | 13.11  |   |   |   | 10.01 |   |
| Monthly                                                    |   |                        |   |   |   |   |   |   |
| October 2016                                          |   |                        | 11.36  |   |   |   | 9.88 |   |
| November 2016                                         |   |                        | 10.00  |   |   |   | 8.81 |   |
| December 2016                                         |   |                        | 11.70  |   |   |   | 9.14 |   |
| January 2017                                          |   |                        | 13.11  |   |   |   | 10.72 |   |
| February 2017                                         |   |                        | 12.60  |   |   |   | 10.01 |   |
| March 2017                                            |   |                        | 12.70  |   |   |   | 11.53 |   |
| April 2017 (through April 18, 2017)                   |   |                        | 12.03  |   |   |   | 11.19 |   |

----

| 1. | On July 23, 2015, we completed the pro rata distribution in specie of 18,030,041 ordinary shares of Tower, representing 23% of the then currently outstanding Tower shares and substantially all of our interest in Tower, to holders of our ordinary shares. The closing price of Tower on NASDAQ on July 23, 2015 was $14.16. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                       |   | Price per ordinary share(NIS) |   |
|------------------------------------------------------------|--------|-------------------------------|--------|
|                                                       |   | High                          |   |   | Low |   |
| Annual:                                                    |   |                          |   |   |   |   |
| Year ended December 31, 2015 (since January 6, 2015)  |   |                          | 84.98  |   |   |   | 37.75 |   |
| Year ended December 31, 2016                          |   |                          | 46.34  |   |   |   | 28.10 |   |
| Quarterly:                                                 |   |                          |   |   |   |   |   |   |
| Three months ended June 30, 2015                      |   |                          | 84.98  |   |   |   | 74.75 |   |
| Three months ended September 30, 20151                |   |                          | 80.04  |   |   |   | 51.51 |   |
| Three months ended December 31, 2015                  |   |                          | 55.93  |   |   |   | 37.75 |   |
| Three months ended March 31, 2016                     |   |                          | 40.00  |   |   |   | 29.13 |   |
| Three months ended June 30, 2016                      |   |                          | 41.75  |   |   |   | 28.10 |   |
| Three months ended September 30, 2016                 |   |                          | 46.34  |   |   |   | 36.12 |   |
| Three months ended December 31, 2016                  |   |                          | 45.33  |   |   |   | 33.30 |   |
| Three months ended March 31, 2017                     |   |                          | 49.06  |   |   |   | 37.55 |   |
| Monthly                                                    |   |                          |   |   |   |   |   |   |
| October 2016                                          |   |                          | 42.95  |   |   |   | 37.37 |   |
| November 2016                                         |   |                          | 38.11  |   |   |   | 33.30 |   |
| December 2016                                         |   |                          | 45.33  |   |   |   | 34.58 |   |
| January 2017                                          |   |                          | 49.06  |   |   |   | 40.87 |   |
| February 2017                                         |   |                          | 47.85  |   |   |   | 37.55 |   |
| March 2017                                            |   |                          | 45.50  |   |   |   | 41.53 |   |
| April 2017 (through April 18, 2017)                   |   |                          | 44.81  |   |   |   | 40.40 |   |

----

| 1. | On July 23, 2015, we completed the pro rata distribution in specie of 18,030,041 ordinary shares of Tower, representing 23% of the then currently outstanding Tower shares and substantially all of our interest in Tower, to holders of our ordinary shares. The closing price of Tower on the TASE on July 23, 2015 was NIS 53.00. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | the conclusion of the next annual general meeting; |
|--|--------|----------------------------------------------------|

|  | · | the expiration of the period within which the next annual general meeting is required by law to be held (i.e., within 18 months from our incorporation date (and in the case of subsequent periods, 15 months)) or six months from our financial year end, being December 31, whichever is earlier; or |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | the subsequent revocation or modification of approval by our shareholders acting at a duly convened general meeting. |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

----

|  | · | upon any resolution concerning the winding-up of our company; and |
|--|--------|-------------------------------------------------------------------|

|  | · | upon any resolution which varies the rights attached to such preference shares. |
|--|--------|---------------------------------------------------------------------------------|

|  | · | all the directors have made a solvency statement in relation to such redemption; and |
|--|--------|--------------------------------------------------------------------------------------|

|  | · | we have lodged a copy of the statement with the Singapore Registrar of Companies. |
|--|--------|-----------------------------------------------------------------------------------|

|  | · | 14 days’ written notice to be given by Kenon of a general meeting to pass an ordinary resolution; and |
|--|--------|-------------------------------------------------------------------------------------------------------------|

|  | · | 21 days’ written notice to be given by Kenon of a general meeting to pass a special resolution, |
|--|--------|-------------------------------------------------------------------------------------------------------|

----

|  | · | a company and its related companies, the associated companies of any of the company and its related companies, companies whose associated companies include any of these companies and any person who has provided financial assistance (other than a bank in the ordinary course of business) to any of the foregoing for the purchase of voting rights; |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a company and its directors (including their close relatives, related trusts and companies controlled by any of the directors, their close relatives and related trusts); |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a company and its pension funds and employee share schemes; |
|--|--------|-------------------------------------------------------------|

----

|  | · | a person and any investment company, unit trust or other fund whose investment such person manages on a discretionary basis but only in respect of the investment account which such person manages; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | a financial or other professional adviser, including a stockbroker, and its clients in respect of shares held by the adviser and persons controlling, controlled by or under the same control as the adviser and all the funds managed by the adviser on a discretionary basis, where the shareholdings of the adviser and any of those funds in the client total 10% or more of the client’s equity share capital; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | directors of a company (including their close relatives, related trusts and companies controlled by any of such directors, their close relatives and related trusts) which is subject to an offer or where the directors have reason to believe a bona fide offer for the company may be imminent; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | partners; and |
|--|--------|---------------|

|  | · | an individual and such person’s close relatives, related trusts, any person who is accustomed to act in accordance with such person’s instructions and companies controlled by the individual, such person’s close relatives, related trusts or any person who is accustomed to act in accordance with such person’s instructions and any person who has provided financial assistance (other than a bank in the ordinary course of business) to any of the foregoing for the purchase of voting rights. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|

| Board of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |    |
| A typical certificate of incorporation and bylaws would provide that the number of directors on the board of directors will be fixed from time to time by a vote of the majority of the authorized directors. Under Delaware law, a board of directors can be divided into classes and cumulative voting in the election of directors is only permitted if expressly authorized in a corporation’s certificate of incorporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | The constitution of companies will typically state the minimum and maximum number of directors as well as provide that the number of directors may be increased or reduced by shareholders via ordinary resolution passed at a general meeting, provided that the number of directors following such increase or reduction is within the maximum and minimum number of directors provided in the constitution and the Singapore Companies Act, respectively. Our constitution provides that, unless otherwise determined by a general meeting, the minimum number of directors is five and the maximum number is 12. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Limitation on Personal Liability of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |    |
| A typical certificate of incorporation provides for the elimination of personal monetary liability of directors for breach of fiduciary duties as directors to the fullest extent permissible under the laws of Delaware, except for liability (i) for any breach of a director’s loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law (relating to the liability of directors for unlawful payment of a dividend or an unlawful stock purchase or redemption) or (iv) for any transaction from which the director derived an improper personal benefit. A typical certificate of incorporation would also provide that if the Delaware General Corporation Law is amended so as to allow further elimination of, or limitations on, director liability, then the liability of directors will be eliminated or limited to the fullest extent permitted by the Delaware General Corporation Law as so amended. |   | Pursuant to the Singapore Companies Act, any provision (whether in the constitution, contract or otherwise) purporting to exempt a director (to any extent) from any liability attaching in connection with any negligence, default, breach of duty or breach of trust in relation to Kenon will be void except as permitted under the Singapore Companies Act. Nevertheless, a director can be released by the shareholders of Kenon for breaches of duty to Kenon, except in the case of fraud, illegality, insolvency and oppression or disregard of minority interests. Our constitution currently provides that, subject to the provisions of the Singapore Companies Act and every other act for the time being in force concerning companies and affecting Kenon, every director, auditor, secretary or other officer of Kenon and its subsidiaries and affiliates shall be entitled to be indemnified by Kenon against all liabilities incurred by him in the execution and discharge of his duties and where he serves at the request of Kenon as a director, officer, employee or agent of any subsidiary or affiliate of Kenon or in relation thereto, including any liability incurred by him in defending any proceedings, whether civil or criminal, which relate to anything done or omitted or alleged to have been done or omitted by him as an officer or employee of Kenon, and in which judgment is given in his favor (or the proceedings otherwise disposed of without any finding or admission of any material breach of duty on his part) or in which he is acquitted, or in connection with an application under statute in respect of such act or omission in which relief is granted to him by the court. |

----

| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|

|  Interested Shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |    |
| Section 203 of the Delaware General Corporation Law generally prohibits a Delaware corporation from engaging in specified corporate transactions (such as mergers, stock and asset sales, and loans) with an “interested stockholder” for three years following the time that the stockholder becomes an interested stockholder. Subject to specified exceptions, an “interested stockholder” is a person or group that owns 15% or more of the corporation’s outstanding voting stock (including any rights to acquire stock pursuant to an option, warrant, agreement, arrangement or understanding, or upon the exercise of conversion or exchange rights, and stock with respect to which the person has voting rights only), or is an affiliate or associate of the corporation and was the owner of 15% or more of the voting stock at any time within the previous three years. A Delaware corporation may elect to “opt out” of, and not be governed by, Section 203 through a provision in either its original certificate of incorporation, or an amendment to its original certificate or bylaws that was approved by majority stockholder vote. With a limited exception, this amendment would not become effective until 12 months following its adoption. |   | There are no comparable provisions in Singapore with respect to public companies which are not listed on the Singapore Exchange Securities Trading Limited. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |    |
| Removal of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |    |
| A typical certificate of incorporation and bylaws provide that, subject to the rights of holders of any preferred stock, directors may be removed at any time by the affirmative vote of the holders of at least a majority, or in some instances a supermajority, of the voting power of all of the then outstanding shares entitled to vote generally in the election of directors, voting together as a single class. A certificate of incorporation could also provide that such a right is only exercisable when a director is being removed for cause (removal of a director only for cause is the default rule in the case of a classified board).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | According to the Singapore Companies Act, directors of a public company may be removed before expiration of their term of office with or without cause by ordinary resolution (i.e., a resolution which is passed by a simple majority of those shareholders present and voting in person or by proxy). Notice of the intention to move such a resolution has to be given to Kenon not less than 28 days before the meeting at which it is moved. Kenon shall then give notice of such resolution to its shareholders not less than 14 days before the meeting. Where any director removed in this manner was appointed to represent the interests of any particular class of shareholders or debenture holders, the resolution to remove such director will not take effect until such director’s successor has been appointed. Our constitution provides that Kenon may by ordinary resolution of which special notice has been given, remove any director before the expiration of his period of office, notwithstanding anything in our constitution or in any agreement between Kenon and such director and appoint another person in place of the director so removed. |

----

| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|

|  Filling Vacancies on the Board of Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |    |
| A typical certificate of incorporation and bylaws provide that, subject to the rights of the holders of any preferred stock, any vacancy, whether arising through death, resignation, retirement, disqualification, removal, an increase in the number of directors or any other reason, may be filled by a majority vote of the remaining directors, even if such directors remaining in office constitute less than a quorum, or by the sole remaining director. Any newly elected director usually holds office for the remainder of the full term expiring at the annual meeting of stockholders at which the term of the class of directors to which the newly elected director has been elected expires.                                               |   | The constitution of a Singapore company typically provides that the directors have the power to appoint any person to be a director, either to fill a vacancy or as an addition to the existing directors, but so that the total number of directors will not at any time exceed the maximum number fixed in the constitution. Any newly elected director shall hold office until the next following annual general meeting, where such director will then be eligible for re-election. Our constitution provides that the shareholders may by ordinary resolution, or the directors may, appoint any person to be a director as an additional director or to fill a vacancy provided that any person so appointed by the directors will only hold office until the next annual general meeting, and will then be eligible for re-election. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Amendment of Governing Documents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |    |
| Under the Delaware General Corporation Law, amendments to a corporation’s certificate of incorporation require the approval of stockholders holding a majority of the outstanding shares entitled to vote on the amendment. If a class vote on the amendment is required by the Delaware General Corporation Law, a majority of the outstanding stock of the class is required, unless a greater proportion is specified in the certificate of incorporation or by other provisions of the Delaware General Corporation Law. Under the Delaware General Corporation Law, the board of directors may amend bylaws if so authorized in the charter. The stockholders of a Delaware corporation also have the power to amend bylaws.                      |   | Our constitution may be altered by special resolution (i.e., a resolution passed by at least a three-fourths majority of the shares entitled to vote, present in person or by proxy at a meeting for which not less than 21 days written notice is given). The board of directors has no right to amend the constitution. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |    |
| Meetings of Shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Annual and Special Meetings Typical bylaws provide that annual meetings of stockholders are to be held on a date and at a time fixed by the board of directors. Under the Delaware General Corporation Law, a special meeting of stockholders may be called by the board of directors or by any other person authorized to do so in the certificate of incorporation or the bylaws. Quorum Requirements Under the Delaware General Corporation Law, a corporation’s certificate of incorporation or bylaws can specify the number of shares which constitute the quorum required to conduct business at a meeting, provided that in no event shall a quorum consist of less than one-third of the shares entitled to vote at a meeting. |   | Annual General Meetings All companies are required to hold an annual general meeting once every calendar year. The first annual general meeting was required to be held within 18 months of Kenon’s incorporation and subsequently, annual general meetings must be held not more than 15 months after the holding of the last preceding annual general meeting, and in each case, not later than six months from Kenon’s financial year end. Extraordinary General Meetings Any general meeting other than the annual general meeting is called an “extraordinary general meeting.” Two or more members (shareholders) holding not less than 10% of the total number of issued shares (excluding treasury shares) may call an extraordinary general meeting. In addition, the constitution usually also provides that general meetings may be convened in accordance with the Singapore Companies Act by the directors. Notwithstanding anything in the constitution, the directors are required to convene a general meeting if required to do so by requisition (i.e., written notice to directors requiring that a meeting be called) by shareholder(s) holding not less than 10% of the total number of paid-up shares of Kenon carrying voting rights. Our constitution provides that the directors may, whenever they think fit, convene an extraordinary general meeting. Quorum Requirements Our constitution provides that shareholders entitled to vote holding 33 and 1/3 percent of our issued and paid-up shares, present in person or by proxy at a meeting, shall be a quorum. In the event a quorum is not present, the meeting may be adjourned for one week. |

----

| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|

| Indemnification of Officers, Directors and Employers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| Under the Delaware General Corporation Law, subject to specified limitations in the case of derivative suits brought by a corporation’s stockholders in its name, a corporation may indemnify any person who is made a party to any third-party action, suit or proceeding on account of being a director, officer, employee or agent of the corporation (or was serving at the request of the corporation in such capacity for another corporation, partnership, joint venture, trust or other enterprise) against expenses, including attorney’s fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action, suit or proceeding through, among other things, a majority vote of a quorum consisting of directors who were not parties to the suit or proceeding, if the person: •       acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the corporation or, in some circumstances, at least not opposed to its best interests; and •       in a criminal proceeding, had no reasonable cause to believe his or her conduct was unlawful. Delaware corporate law permits indemnification by a corporation under similar circumstances for expenses (including attorneys’ fees) actually and reasonably incurred by such persons in connection with the defense or settlement of a derivative action or suit, except that no indemnification may be made in respect of any claim, issue or matter as to which the person is adjudged to be liable to the corporation unless the Delaware Court of Chancery or the court in which the action or suit was brought determines upon application that the person is fairly and reasonably entitled to indemnity for the expenses which the court deems to be proper. To the extent a director, officer, employee or agent is successful in the defense of such an action, suit or proceeding, the corporation is required by Delaware corporate law to indemnify such person for reasonable expenses incurred thereby. Expenses (including attorneys’ fees) incurred by such persons in defending any action, suit or proceeding may be paid in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of that person to repay the amount if it is ultimately determined that that person is not entitled to be so indemnified. |   | The Singapore Companies Act specifically provides that Kenon is allowed to: •       purchase and maintain for any officer insurance against any liability attaching to such officer in respect of any negligence, default, breach of duty or breach of trust in relation to Kenon; •       indemnify such officer against liability incurred by a director to a person other than Kenon except when the indemnity is against (i) any liability of the director to pay a fine in criminal proceedings or a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising); or (ii) any liability incurred by the officer (1) in defending criminal proceedings in which he is convicted, (2) in defending civil proceedings brought by Kenon or a related company of Kenon in which judgment is given against him or (3) in connection with an application for relief under specified sections of the Singapore Companies Act in which the court refuses to grant him relief. •       indemnify any auditor against any liability incurred or to be incurred by such auditor in defending any proceedings (whether civil or criminal) in which judgment is given in such auditor’s favor or in which such auditor is acquitted; or •       indemnify any auditor against any liability incurred by such auditor in connection with any application under specified sections of the Singapore Companies Act in which relief is granted to such auditor by a court. In cases where, inter alia, an officer is sued by Kenon the Singapore Companies Act gives the court the power to relieve directors either wholly or partially from the consequences of their negligence, default, breach of duty or breach of trust. However, Singapore case law has indicated that such relief will not be granted to a director who has benefited as a result of his or her breach of trust. In order for relief to be obtained, it must be shown that (i) the director acted reasonably; (ii) the director acted honestly; and (iii) it is fair, having regard to all the circumstances of the case including those connected with such director’s appointment, to excuse the director. Our constitution currently provides that, subject to the provisions of the Singapore Companies Act and every other act for the time being in force concerning companies and affecting Kenon, every director, auditor, secretary or other officer of Kenon and its subsidiaries and affiliates shall be entitled to be indemnified by Kenon against all liabilities incurred by him in the execution and discharge of his duties and where he serves at the request of Kenon as a director, officer, employee or agent of any subsidiary or affiliate of Kenon or in relation thereto, including any liability incurred by him in defending any proceedings, whether civil or criminal, which relate to anything done or omitted or alleged to have been done or omitted by him as an officer or employee of Kenon, and in which judgment is given in his favor (or the proceedings otherwise disposed of without any finding or admission of any material breach of duty on his part) or in which he is acquitted, or in connection with an application under statute in respect of such act or omission in which relief is granted to him by the court. |

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| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|

|  Shareholder Approval of Business Combinations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |    |
| Generally, under the Delaware General Corporation Law, completion of a merger, consolidation, or the sale, lease or exchange of substantially all of a corporation’s assets or dissolution requires approval by the board of directors and by a majority (unless the certificate of incorporation requires a higher percentage) of outstanding stock of the corporation entitled to vote. The Delaware General Corporation Law also requires a special vote of stockholders in connection with a business combination with an “interested stockholder” as defined in section 203 of the Delaware General Corporation Law. For further information on such provisions, see “—Interested Shareholders” above.                                                                                                                                                                                                                                                                                                                                                                                      |   | The Singapore Companies Act mandates that specified corporate actions require approval by the shareholders in a general meeting, notably: •       notwithstanding anything in Kenon’s constitution, directors are not permitted to carry into effect any proposals for disposing of the whole or substantially the whole of Kenon’s undertaking or property unless those proposals have been approved by shareholders in a general meeting; •       subject to the constitution of each amalgamating company, an amalgamation proposal must be approved by the shareholders of each amalgamating company via special resolution at a general meeting; and •       notwithstanding anything in Kenon’s constitution, the directors may not, without the prior approval of shareholders, issue shares, including shares being issued in connection with corporate actions. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Shareholder Action Without a Meeting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Under the Delaware General Corporation Law, unless otherwise provided in a corporation’s certificate of incorporation, any action that may be taken at a meeting of stockholders may be taken without a meeting, without prior notice and without a vote if the holders of outstanding stock, having not less than the minimum number of votes that would be necessary to authorize such action, consent in writing. It is not uncommon for a corporation’s certificate of incorporation to prohibit such action.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | There are no equivalent provisions under the Singapore Companies Act in respect of passing shareholders’ resolutions by written means that apply to public companies listed on a securities exchange. |
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| Shareholder Suits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| Under the Delaware General Corporation Law, a stockholder may bring a derivative action on behalf of the corporation to enforce the rights of the corporation. An individual also may commence a class action suit on behalf of himself or herself and other similarly situated stockholders where the requirements for maintaining a class action under the Delaware General Corporation Law have been met. A person may institute and maintain such a suit only if such person was a stockholder at the time of the transaction which is the subject of the suit or his or her shares thereafter devolved upon him or her by operation of law. Additionally, under Delaware case law, the plaintiff generally must be a stockholder not only at the time of the transaction which is the subject of the suit, but also through the duration of the derivative suit. The Delaware General Corporation Law also requires that the derivative plaintiff make a demand on the directors of the corporation to assert the corporate claim before the suit may be prosecuted by the derivative plaintiff, unless such demand would be futile. |   | Derivative actions The Singapore Companies Act has a provision which provides a mechanism enabling shareholders to apply to the court for leave to bring a derivative action on behalf of Kenon. Applications are generally made by shareholders of Kenon or individual directors, but courts are given the discretion to allow such persons as they deem proper to apply (e.g., beneficial owner of shares). It should be noted that this provision of the Singapore Companies Act is primarily used by minority shareholders to bring an action in the name and on behalf of Kenon or intervene in an action to which Kenon is a party for the purpose of prosecuting, defending or discontinuing the action on behalf of Kenon. Class actions The concept of class action suits, which allows individual shareholders to bring an action seeking to represent the class or classes of shareholders, generally does not exist in Singapore. However, it is possible as a matter of procedure for a number of shareholders to lead an action and establish liability on behalf of themselves and other shareholders who join in or who are made parties to the action. These shareholders are commonly known as “lead plaintiffs.” Further, there are circumstances under the provisions of certain Singapore statutes where shareholders may file and prove their claims for compensation in the event that Kenon has been convicted of a criminal offense or has a court order for the payment of a civil penalty made against it. Additionally, for as long as Kenon is listed in the U.S. or in Israel, Kenon has undertaken not to claim that it is not subject to any derivative/class action that may be filed against it in the U.S. or Israel, as applicable, solely on the basis that it is a Singapore company. |

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| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|

|  Dividends or Other Distributions; Repurchases and Redemptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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| The Delaware General Corporation Law permits a corporation to declare and pay dividends out of statutory surplus or, if there is no surplus, out of net profits for the fiscal year in which the dividend is declared and/or for the preceding fiscal year as long as the amount of capital of the corporation following the declaration and payment of the dividend is not less than the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets. Under the Delaware General Corporation Law, any corporation may purchase or redeem its own shares, except that generally it may not purchase or redeem these shares if the capital of the corporation is impaired at the time or would become impaired as a result of the redemption. A corporation may, however, purchase or redeem out of capital shares that are entitled upon any distribution of its assets to a preference over another class or series of its shares if the shares are to be retired and the capital reduced.  |   | The Singapore Companies Act provides that no dividends can be paid to shareholders except out of profits. The Singapore Companies Act does not provide a definition on when profits are deemed to be available for the purpose of paying dividends and this is accordingly governed by case law. Our constitution provides that no dividend can be paid otherwise than out of profits of Kenon. Acquisition of a company’s own shares The Singapore Companies Act generally prohibits a company from acquiring its own shares subject to certain exceptions. Any contract or transaction by which a company acquires or transfers its own shares is void. However, provided that it is expressly permitted to do so by its constitution and subject to the special conditions of each permitted acquisition contained in the Singapore Companies Act, Kenon may: •       redeem redeemable preference shares (the redemption of these shares will not reduce the capital of Kenon). Preference shares may be redeemed out of capital if all the directors make a solvency statement in relation to such redemption in accordance with the Singapore Companies Act; •       whether listed on a securities exchange (in Singapore or outside Singapore) or not, make an off-market purchase of its own shares in accordance with an equal access scheme authorized in advance at a general meeting; •       whether listed on a securities exchange (in Singapore or outside Singapore) or not, make a selective off-market purchase of its own shares in accordance with an agreement authorized in advance at a general meeting by a special resolution where persons whose shares are to be acquired and their associated persons have abstained from voting; and •       whether listed on a securities exchange (in Singapore or outside Singapore) or not, make an acquisition of its own shares under a contingent purchase contract which has been authorized in advance at a general meeting by a special resolution. Kenon may also purchase its own shares by an order of a Singapore court. The total number of ordinary shares that may be acquired by Kenon in a relevant period may not exceed 20% of the total number of ordinary shares in that class as of the date of the resolution pursuant to the relevant share repurchase provisions under the Singapore Companies Act. Where, however, Kenon has reduced its share capital by a special resolution or a Singapore court made an order to such effect, the total number of ordinary shares shall be taken to be the total number of ordinary shares in that class as altered by the special resolution or the order of the court. Payment must be made out of Kenon’s distributable profits or capital, provided that Kenon is solvent. Such payment may include any expenses (including brokerage or commission) incurred directly in the purchase or acquisition by Kenon of its ordinary shares. Financial assistance for the acquisition of shares Kenon may not give financial assistance to any person whether directly or indirectly for the purpose of: •      the acquisition or proposed acquisition of shares in Kenon or units of such shares; or •      the acquisition or proposed acquisition of shares in its holding company or ultimate holding company, as the case may be, or units of such shares. Financial assistance may take the form of a loan, the giving of a guarantee, the provision of security, the release of an obligation, the release of a debt or otherwise. However, it should be noted that Kenon may provide financial assistance for the acquisition of its shares or shares in its holding company if it complies with the requirements (including, where applicable, approval by the board of directors or by the passing of a special resolution by its shareholders) set out in the Singapore Companies Act. Our constitution provides that subject to the provisions of the Singapore Companies Act, we may purchase or otherwise acquire our own shares upon such terms and subject to such conditions as we may deem fit. These shares may be held as treasury shares or cancelled as provided in the Singapore Companies Act or dealt with in such manner as may be permitted under the Singapore Companies Act. On cancellation of the shares, the rights and privileges attached to those shares will expire. |

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| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|
| Transactions with Officers and Directors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |    |
| Under the Delaware General Corporation Law, some contracts or transactions in which one or more of a corporation’s directors has an interest are not void or voidable because of such interest provided that some conditions, such as obtaining the required approval and fulfilling the requirements of good faith and full disclosure, are met. Under the Delaware General Corporation Law, either (a) the stockholders or the board of directors must approve in good faith any such contract or transaction after full disclosure of the material facts or (b) the contract or transaction must have been “fair” as to the corporation at the time it was approved. If board approval is sought, the contract or transaction must be approved in good faith by a majority of disinterested directors after full disclosure of material facts, even though less than a majority of a quorum. |   | Under the Singapore Companies Act, the chief executive officer and directors are not prohibited from dealing with Kenon, but where they have an interest in a transaction with Kenon, that interest must be disclosed to the board of directors. In particular, the chief executive officer and every director who is in any way, whether directly or indirectly, interested in a transaction or proposed transaction with Kenon must, as soon as practicable after the relevant facts have come to such officer or director’s knowledge, declare the nature of such officer or director’s interest at a board of directors’ meeting or send a written notice to Kenon containing details on the nature, character and extent of his interest in the transaction or proposed transaction with Kenon. In addition, a director or chief executive officer who holds any office or possesses any property which, directly or indirectly, duties or interests might be created in conflict with such officer’s duties or interests as director or chief executive officer, is required to declare the fact and the nature, character and extent of the conflict at a meeting of directors or send a written notice to Kenon containing details on the nature, character and extent of the conflict. The Singapore Companies Act extends the scope of this statutory duty of a director or chief executive officer to disclose any interests by pronouncing that an interest of a member of the director’s or, as the case may be, the chief executive officer’s family (including spouse, son, adopted son, step-son, daughter, adopted daughter and step-daughter) will be treated as an interest of the director. There is however no requirement for disclosure where the interest of the director or chief executive officer (as the case may be) consists only of being a member or creditor of a corporation which is interested in the proposed transaction with Kenon if the interest may properly be regarded as immaterial. Where the proposed transaction relates to any loan to Kenon, no disclosure need be made where the director or chief executive officer has only guaranteed or joined in guaranteeing the repayment of such loan, unless the constitution provides otherwise. Further, where the proposed transaction is to be made with or for the benefit of a related corporation (i.e. the holding company, subsidiary or subsidiary of a common holding company) no disclosure need be made of the fact that the director or chief executive officer is also a director or chief executive officer of that corporation, unless the constitution provides otherwise. Subject to specified exceptions, including a loan to a director for expenditure in defending criminal or civil proceedings, etc. or in connection with an investigation, or an action proposed to be taken by a regulatory authority in connection with any alleged negligence, default, breach of duty or breach of trust by him in relation to Kenon, the Singapore Companies Act prohibits Kenon from: (i) making a loan or quasi-loan to its directors or to directors of a related corporation (each, a “relevant director”); (ii) giving a guarantee or security in connection with a loan or quasi-loan made to a relevant director by any other person; (iii) entering into a credit transaction as creditor for the benefit of a relevant director; (iv) giving a guarantee or security in connection with such credit transaction entered into by any person for the benefit of a relevant director; (v) taking part in an arrangement where another person enters into any of the transactions in (i) to (iv) above or (vi) below and such person obtains a benefit from Kenon or a related corporation; or (vi) arranging for the assignment to Kenon or assumption by Kenon of any rights, obligations or liabilities under a transaction in (i) to (v) above. Kenon is also prohibited from entering into the transactions in (i) to (vi) above with or for the benefit of a relevant director’s spouse or children (whether adopted or naturally or step-children). |

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| Delaware |   | Singapore—Kenon Holdings Ltd. |
|----------|--------|-------------------------------------|
| Dissenters’ Rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |    |
| Under the Delaware General Corporation Law, a stockholder of a corporation participating in some types of major corporate transactions may, under varying circumstances, be entitled to appraisal rights pursuant to which the stockholder may receive cash in the amount of the fair market value of his or her shares in lieu of the consideration he or she would otherwise receive in the transaction.                                                                                                                                                                                                                                                                                                                          |   | There are no equivalent provisions under the Singapore Companies Act. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |    |
| Cumulative Voting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| Under the Delaware General Corporation Law, a corporation may adopt in its bylaws that its directors shall be elected by cumulative voting. When directors are elected by cumulative voting, a stockholder has the number of votes equal to the number of shares held by such stockholder times the number of directors nominated for election. The stockholder may cast all of such votes for one director or among the directors in any proportion.                                                                                                                                                                                                                                                                               |   | There is no equivalent provision under the Singapore Companies Act in respect of companies incorporated in Singapore. |
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| Anti-Takeover Measures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |    |
| Under the Delaware General Corporation Law, the certificate of incorporation of a corporation may give the board the right to issue new classes of preferred stock with voting, conversion, dividend distribution, and other rights to be determined by the board at the time of issuance, which could prevent a takeover attempt and thereby preclude shareholders from realizing a potential premium over the market value of their shares. In addition, Delaware law does not prohibit a corporation from adopting a stockholder rights plan, or “poison pill,” which could prevent a takeover attempt and also preclude shareholders from realizing a potential premium over the market value of their shares. |   | The constitution of a Singapore company typically provides that the company may allot and issue new shares of a different class with preferential, deferred, qualified or other special rights as its board of directors may determine with the prior approval of the company’s shareholders in a general meeting. Our constitution provides that our shareholders may grant to our board the general authority to issue such preference shares until the next general meeting. For further information, see “Item 3D. Risk Factors—Risks Relating to Our Ordinary Shares—Our directors have general authority to allot and issue new shares on terms and conditions and with any preferences, rights or restrictions as may be determined by our board of directors in its sole discretion, which may dilute our existing shareholders. We may also issue securities that have rights and privileges that are more favorable than the rights and privileges accorded to our existing shareholders” and “Item 10.B Constitution—Preference Shares.” Singapore law does not generally prohibit a corporation `from adopting “poison pill” arrangements which could prevent a takeover attempt and also preclude shareholders from realizing a potential premium over the market value of their shares However, under the Singapore Code on Take-overs and Mergers, if, in the course of an offer, or even before the date of the offer announcement, the board of the offeree company has reason to believe that a bona fide offer is imminent, the board must not, except pursuant to a contract entered into earlier, take any action, without the approval of shareholders at a general meeting, on the affairs of the offeree company that could effectively result in any bona fide offer being frustrated or the shareholders being denied an opportunity to decide on its merits. For further information on the Singapore Code on Take-overs and Mergers, see “—Takeovers.” |

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|  | · | persons that are not U.S. Holders; |
|--|--------|------------------------------------|

|  | · | persons that are subject to alternative minimum taxes; |
|--|--------|--------------------------------------------------------|

|  | · | insurance companies; |
|--|--------|----------------------|

|  | · | tax-exempt entities; |
|--|--------|----------------------|

|  | · | financial institutions; |
|--|--------|-------------------------|

|  | · | broker-dealers; |
|--|--------|-----------------|

|  | · | persons that hold our ordinary shares through partnerships (or other entities classified as partnerships for U.S. federal income tax purposes); |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | pass-through entities; |
|--|--------|------------------------|

|  | · | persons that actually or constructively own 10% or more of the total combined voting power of all classes of our voting stock; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------|

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|  | · | traders in securities that elect to apply a mark-to-market method of accounting, holders that hold our ordinary shares as part of a “hedge,” “straddle,” “conversion,” or other risk reduction transaction for U.S. federal income tax purposes; and |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | individuals who receive our ordinary shares upon the exercise of compensatory options or otherwise as compensation. |
|--|--------|---------------------------------------------------------------------------------------------------------------------|

|  | · | an individual who is a citizen or resident of the United States; |
|--|--------|------------------------------------------------------------------|

|  | · | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in the United States or under the laws of the United States, any state thereof or the District of Columbia; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or |
|--|--------|--------------------------------------------------------------------------------------------------------|

|  | · | a trust that (1) is subject to the primary supervision of a court within the United States and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | · | currency risk, as a result of changes in the rates of exchange of various foreign currencies (in particular, the Euro and the New Israeli Shekel) in relation to the U.S. Dollar, our functional currency and the currency against which we measure our exposure; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | index risk, as a result of changes in the Consumer Price Index; |
|--|--------|-----------------------------------------------------------------|

|  | · | interest rate risk, as a result of changes in the market interest rates affecting certain of our businesses’ issuance of debt and related financial instruments; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | price risk, as a result of changes in market prices, such as the price of certain commodities (e.g., natural gas and heavy fuel oil). |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------|

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|                      |   | Year endedDecember 31, |   |
|---------------------------|--------|------------------------|--------|
|                      |   | 2016                   |   |   | 2015 |   |
|                      |   | (in thousands of USD)  |   |
| Audit Fees1          |   | $                      | 4,064  |   |   | $ | 4,189 |   |
| Audit-Related Fees2  |   |                   | 1,387  |   |   |   | 1,030 |   |
| Tax Fees3            |   | $                      | 144    |   |   | $ | 394 |   |
| All Other Fees       |   |                   | 26     |   |   |   | — |   |
|                      |   |                   |   |   |   |   |   |   |
| Total                |   | $                      | 5,621  |   |   | $ | 5,613 |   |

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| 1. | Includes fees billed or accrued for professional services rendered by the principal accountant, and member firms in their respective network, for the audit of our annual financial statements, and those of our consolidated subsidiaries, as well as additional services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements, except for those not required by statute or regulation. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | The audit-related fees for the year ended December 31, 2016 and 2015 substantially reflect fees billed or accrued in connection with IC Power’s filing of a registration statement on Form F-1. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Tax fees consist of fees for professional services rendered during the fiscal year by the principal accountant mainly for tax compliance and assistance with tax audits and appeals. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit Number |   | Description of Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 1.1            |   | Kenon Holdings Ltd.’s Constitution (Incorporated by reference to Exhibit 1.1 to Amendment No. 1 to Kenon’s Registration Statement on Form 20-F, filed on December 19, 2014)                                                                                                                                                                                                                                                                                                                                                            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.1            |   | Form of Specimen Share Certificate for Kenon Holdings Ltd.’s Ordinary Shares (Incorporated by reference to Exhibit 2.1 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)                                                                                                                                                                                                                                                                                                     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.2            |   | Registration Rights Agreement, dated as of January 7, 2015, between Kenon Holdings Ltd. and Millenium Investments Elad Ltd. (Incorporated by reference to Exhibit 99.5 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                               |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.3            |   | Registration Rights Agreement, dated as of January 7, 2015, between Kenon Holdings Ltd. and Bank Leumi Le-Israel B.M. (Incorporated by reference to Exhibit 99.6 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                                     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.4            |   | Registration Rights Agreement, dated as of January 7, 2015, between Kenon Holdings Ltd. and XT Investments Ltd. (Incorporated by reference to Exhibit 99.7 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                                           |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.1            |   | Sale, Separation and Distribution Agreement, dated as of January 7, 2015, between Israel Corporation Ltd. and Kenon Holdings Ltd. (Incorporated by reference to Exhibit 99.2 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                         |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.2            |   | Loan Agreement, dated as of January 7, 2015, between Israel Corporation Ltd. and Kenon Holdings Ltd, as supplemented by Supplement No. 1 to the Loan Agreement, dated March 17, 2016 (Incorporated by reference to Exhibit 4.2 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                                                                                   |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.3            |   | English translation of Natural Gas Supply Agreement, dated as of January 2, 2006, as amended, among Kallpa Generación S.A., Pluspetrol Peru Corporation S.A., Pluspetrol Camisea S.A., Hunt Oil Company of Peru L.L.C. Sucursal del Peru, SK Corporation Sucursal Peruana, Sonatrach Peru Corporation S.A.C., Tecpetrol del Peru S.A.C. and Repsol Exploración Peru Sucursal del Peru (Incorporated by reference to Exhibit 4.3 to Amendment No. 1 to Kenon’s Draft Registration Statement on Form 20-F, filed on August 14, 2014) |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.4            |   | English translation of Natural Gas Transportation Agreement, dated as of December 10, 2007, as amended, between Kallpa Generación S.A. and Transportadora de Gas del Peru S.A. (Incorporated by reference to Exhibit 4.4 to Amendment No. 1 to Kenon’s Draft Registration Statement on Form 20-F, filed on August 14, 2014)                                                                                                                                                                                                             |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.5            |   | Turnkey Engineering, Procurement and Construction Contract, dated as of November 4, 2011, among Cerro del Águila S.A., Astaldi S.p.A. and GyM S.A., as amended (Incorporated by reference to Exhibit 4.5 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                                                                                                    |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.6            |   | English translation of Contract of Concession, dated as of October 23, 2010, as amended, between the Government of Peru and Kallpa Generación S.A., relating to the provision of electric energy services to the public (Incorporated by reference to Exhibit 4.6 to Amendment No. 1 to Kenon’s Draft Registration Statement on Form 20-F, filed on August 14, 2014)                                                                                                                                                                    |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.7†     |   | Joint Venture Contract, dated as of February 16, 2007, as amended, between Wuhu Chery Automobile Investment Co., Ltd. and Quantum (2007) LLC (Incorporated by reference to Exhibit 4.7 to Amendment No. 1 to Kenon’s Registration Statement on Form 20-F, filed on December 19, 2014)                                                                                                                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.8†     |   | Gas Sale and Purchase Agreement, dated as of November 25, 2012, among Noble Energy Mediterranean Ltd., Delek Drilling Limited Partnership, Isramco Negev 2 Limited Partnership, Avner Oil Exploration Limited Partnership, Dor Gas Exploration Limited Partnership, and O.P.C. Rotem Ltd. (Incorporated by reference to Exhibit 10.8 to Amendment No. 1 to IC Power Pte. Ltd.’s Form F-1, filed on November 2, 2015)                                                                                                                         |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.9            |   | Indenture, dated as of April 4, 2011, between Inkia Energy Limited, as issuer, and Citibank, N.A.as trustee, relating to Inkia Energy Limited’s 8.375% Senior Notes due 2021 (Incorporated by reference to Exhibit 4.9 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)                                                                                                                                                                                                     |

----

| Exhibit Number |   | Description of Document |
|----------------|--------|-------------------------|

|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.10             |   | Facility Agreement, dated as of January 2, 2011, among O.P.C. Rotem Ltd., as borrower, Bank Leumi Le-Israel B.M., as arranger and agent, Bank Leumi Le-Israel Trust Company Ltd., as security trustee, and the senior lenders named therein (Incorporated by reference to Exhibit 4.10 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)     |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.11       |   | Credit Agreement, dated as of August 17, 2012, among Cerro del Águila S.A., as borrower, Sumitomo Mitsui Banking Corporation, as administrative agent, and other parties party thereto (Incorporated by reference to Exhibit 4.11 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)                                                     |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.12       |   | Guarantee Contract, dated as of June 9, 2015, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd. (Incorporated by reference to Exhibit 4.12 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                         |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.13       |   | Guarantee Contract, dated as of November 5, 2015, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd. (Incorporated by reference to Exhibit 4.13 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                     |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.14       |   | Stock Purchase Agreement, dated as of December 29, 2015, among IC Power Distribution Holdings PTE, Limited, as Purchaser, Inkia Energy, Limited, as Purchaser Guarantor, DEORSA-DEOCSA Holdings Limited, as Seller, and Estrella Cooperatief BA (Incorporated by reference to Exhibit 4.14 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016) |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.15       |   | Pledge Agreement, dated as of March 17, 2016, between Israel Corporation Ltd. and IC Power Pte. Ltd. (Incorporated by reference to Exhibit 4.15 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                            |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.16       |   | Security over Shares Agreement, dated as of March 17, 2016, between Israel Corporation Ltd. and Kenon Holdings Ltd. (Incorporated by reference to Exhibit 4.16 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                             |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.17*      |   | Amendment and Restatement Agreement, dated as of September 2, 2016, relating to the Loan Agreement dated as of April 22, 2016, between Quantum (2007) LLC, as borrower, and Ansonia Holdings Singapore B.V., as lender, as amended                                                                                                                                                                           |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.18       |   | Undertaking Agreement, dated as of April 22, 2016, among Qoros Automotive Co., Ltd., Quantum (2007) LLC, Kenon Holdings Ltd., Wuhu Chery Automobile Investment Co., Ltd., Chery Automobiles Limited, and Ansonia Holdings Singapore B.V. (Incorporated by reference to Exhibit 4.18 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)        |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.19*      |   | Additional Undertaking Agreement, dated as of September 2, 2016, among Qoros Automotive Co., Ltd., Quantum (2007) LLC, Kenon Holdings Ltd., Wuhu Chery Automobile Investment Co., Ltd., Chery Automobiles Limited, and Ansonia Holdings Singapore B.V.                                                                                                                                                       |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.20*      |   | Fourth Amended and Restated Limited Liability Company Agreement of Quantum (2007) LLC, dated as of September 2, 2016                                                                                                                                                                                                                                                                                         |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.21*      |   | Release Agreement, dated December 21, 2016, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd.                                                                                                                                                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.22*      |   | Equity Pledge Contract, dated December 21, 2016, between Quantum (2007) LLC, as Pledgor, and Chery Automobile Co. Ltd., as Pledgee                                                                                                                                                                                                                                                                           |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.23**     |   | Further Release and Cash Support Agreement, dated March 9, 2017, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd.                                                                                                                                                                                                                                                                                   |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.24**     |   | The Second Equity Pledge Contract in relation to 700 Million Loan, dated March 9, 2017, between Quantum (2007) LLC, as Pledgor, and Chery Automobile Co. Ltd., as Pledgee                                                                                                                                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|   8.1* |   | List of subsidiaries of Kenon Holdings Ltd.                                                                                                                                                                                                                                                                                                                                                                  |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 12.1*            |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                            |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 12.2*            |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                            |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 13.1*            |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 15.1*            |   | Consent of KPMG LLP, Independent Registered Public Accounting Firm of Kenon Holdings Ltd.                                                                                                                                                                                                                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 15.2*            |   | Consent of Somekh Chaikin, a Member Firm of KPMG International                                                                                                                                                                                                                                                                                                                                               |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 15.3*            |   | Consent of KPMG Huazhen LLP, Independent Auditor of Qoros Automotive Co., Ltd.                                                                                                                                                                                                                                                                                                                               |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 15.4*            |   | Consent of Deloitte, Inc. (Panamá), Independent Registered Public Accounting Firm of the Combined Entities (Distribuidora de Electricidad de Oriente, S.A. and Distribuidora de Electricidad de Occidente, S.A.)                                                                                                                                                                                        |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 15.5*            |   | Consent of Brightman Almagor Zohar & Co., a Member Firm of Deloitte Touche Tohmatsu, independent auditor of Tower Semiconductor Ltd.                                                                                                                                                                                                                                                                     |

----

| † | Portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Exchange Act. Omitted information has been filed separately with the SEC. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                            | Page                   |
|-----------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                            |                   |
| Reports of Independent Registered Public Accounting Firms                                                       | F-1 – F-6        |
|                                                                                                            |                   |
| Consolidated Statements of Financial Position                                                                   | F-7 – F-8        |
|                                                                                                            |                   |
| Consolidated Statements of Profit & Loss and Combined Statement of Profit & Loss                        | F-9                    |
|                                                                                                            |                   |
| Consolidated Statements of Other Comprehensive Income (Loss) and Combined Statement of Other Comprehensive Loss | F-10                   |
|                                                                                                            |                   |
| Consolidated Statements of Changes in Equity                                                                    | F-11 – F-12      |
|                                                                                                            |                   |
| Combined Statement of Changes in Former Parent Company Investment                                               |    F-13 |
|                                                                                                            |                   |
| Consolidated Statements of Cash Flows and Combined Statement of Cash Flows                                      | F-14 – F-15      |
|                                                                                                            |                   |
| Notes to the consolidated/combined financial statements                                                         | F-16 – F-127     |

| Affiliate Financial Statements Filed Pursuant to Rule 3-09 of Regulation S-X Qoros Automotive Co., Ltd. Consolidated Financial Statements for the Year Ended December 31, 2016 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                     |                          |
|--------------------------------------------------------------------------|-------------------------------|
| Independent Auditors’ Report                                       | F-129 – F-130 |
|                                                                     |                          |
| Consolidated Statements of Financial Position                            | F-131 – F-132      |
|                                                                     |                          |
| Consolidated Statements of Profit or Loss and Other Comprehensive Income | F-133                         |
|                                                                     |                          |
| Consolidated Statements of Changes in Equity                             | F-134 – F-135      |
|                                                                     |                          |
| Consolidated Statements of Cash Flows                                    | F-136 – F-138      |
|                                                                     |                          |
| Notes to the Consolidated Financial Statements                           | F-139 – F-181 |

----

|   | KPMG LLP 16 Raffles Quay #22-00Hong Leong BuildingSingapore 048581 |  Telephone    +65 6213 3388Fax                 +65 6225 0984Internet         www.kpmg.sg |
|--------|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | KPMG LLP (Registration No. T0BLL1267L), an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entitiy. |   |
|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|   | KPMG LLP 16 Raffles Quay #22-00Hong Leong BuildingSingapore 048581 |  Telephone    +65 6213 3388Fax                 +65 6225 0984Internet         www.kpmg.sg |
|--------|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | KPMG LLP (Registration No. T0BLL1267L), an accounting limited liability partnership registered in Singapore under the Limited Liability Partnership Act (Chapter 163A) and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entitiy. |   |
|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

|   | Deloitte, Inc.Contadores Públicos AutorizadosRUC 16292-152-155203 D.V. 65Torre Banco Panamá, piso 12Avenida Boulevard yIa Rotonda Costa del Este, Panamá Apartado 0816-01558Panamá, Rep. de Panamá Teléfono: (507) 303-4100Fax: (507) 269-2386infopanama@deloitte.com www.deloitte.com/pa |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Deloitte LATCO Firma miembro deDeloitte Touche Tohmatsu Limited |
|--------|-----------------------------------------------------------------|

----

----

----

| Tel Aviv - Main Office | Trigger Foresight      | Ramat-Gan                    | Jerusalem               | Haifa                     | Beer-Sheva                    | Eilat                      |
|------------------------|------------------------|------------------------------|-------------------------|---------------------------|-------------------------------|----------------------------|
| 1 Azrieli Center       | 3 Azrieli Center       | 6 Ha-rakun                   | 12 Sarei Israel         | 5 Ma'aleh Hashichrur      | Omer Industrial Park          | The City Center            |
| Tel Aviv, 6701101      | Tel Aviv, 6702301      | Ramat Gan, 5252183           | Jerusalem, 9439024      | P.O.B. 5648               | Building No. 10               | P.O.B. 583                 |
| P.O.B. 16593           |                   |                         |                    | Haifa, 3105502            | P.O.B. 1369                   | Eilat, 8810402             |
| Tel Aviv, 6116402      |                   |                         |                    |                      | Omer, 8496500                 |                       |
| Tel: +972 (3) 608 5555 | Tel: +972 (3) 607 0500 | Tel: +972 (3) 755 1500       | Tel: +972 (2) 501 8888  | Tel: +972 (4) 860 7333    | Tel: +972 (8) 690 9500        | Tel: +972 (8) 637 5676     |
| Fax: +972 (3) 609 4022 | Fax: +972 (3) 607 0501 | Fax: +972 (3) 676 9955       | Fax: +972 (2) 537 4173  | Fax: +972 (4) 867 2528    | Fax: +972 (8) 690 9600        | Fax: +972 (8) 637 1628     |
| Info@deloitte.co.il    | Info@tfco.co.il        | Info-ramatgan@deloitte.co.il | Info-jer@deloitte.co.il | Info-haifa@deloitte.co.il | Info-beersheva@deloitte.co.il | Info-eilat@)deloitte.co.il |

----

|                                                                    |   |   |   |   | As at December 31 |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|-------------------|--------|
|                                                                    |   |   |   |   | 2016              |   |   | 2015 |   |
|                                                                    |   | Note   |   |   | $ thousands       |   |
|                                                                    |   |   |   |   |              |   |   |   |   |
| Current assets                                                          |   |   |   |   |              |   |   |   |   |
| Cash and cash equivalents                                               |   |   | 5      |   |              |   | 326,635 |   |   |   | 383,953 |   |
| Short-term investments and deposits                                     |   |   | 6      |   |              |   | 89,545 |   |   |   | 308,702 |   |
| Trade receivables, net                                                  |   |   | 7      |   |              |   | 284,532 |   |   |   | 123,273 |   |
| Other current assets, including derivatives                             |   |   | 8      |   |              |   | 49,773 |   |   |   | 45,260 |   |
| Income tax receivable                                                   |   |   |   |   |              |   | 11,459 |   |   |   | 3,926 |   |
| Inventories                                                             |   |   | 9      |   |              |   | 91,659 |   |   |   | 50,351 |   |
|                                                                    |   |   |   |   |              |   |   |   |   |   |   |   |
| Total current assets                                                    |   |   |   |   |              |   | 853,603 |   |   |   | 915,465 |   |
|                                                                    |   |   |   |   |              |   |   |   |   |   |   |   |
| Non-current assets                                                      |   |   |   |   |              |   |   |   |   |   |   |   |
| Investments in associated companies                                     |   |   | 10     |   |              |   | 208,233 |   |   |   | 369,022 |   |
| Deposits, loans and other receivables, including derivative instruments |   |   | 12     |   |              |   | 176,775 |   |   |   | 88,475 |   |
| Deferred taxes, net                                                     |   |   | 26     |   |              |   | 25,104 |   |   |   | 2,693 |   |
| Property, plant and equipment, net                                      |   |   | 13     |   |              |   | 3,497,300 |   |   |   | 2,959,878 |   |
| Goodwill and intangible assets, net                                     |   |   | 14     |   |              |   | 376,778 |   |   |   | 147,244 |   |
| Total non-current assets                                                |   |   |   |   |              |   | 4,284,190 |   |   |   | 3,567,312 |   |
|                                                                    |   |   |   |   |              |   |   |   |   |   |   |   |
| Total assets                                                            |   |   |   |   |              |   | 5,137,793 |   |   |   | 4,482,777 |   |

----

|                                             |   |   |   |   | As at December 31 |   |
|--------------------------------------------------|--------|--------|--------|--------|-------------------|--------|
|                                             |   |   |   |   | 2016              |   |   | 2015 |   |
|                                             |   | Note   |   |   | $ thousands       |   |
| Current liabilities                              |   |   |   |   |              |   |   |   |   |
| Loans and debentures                             |   |   | 15     |   |              |   | 482,813 |   |   |   | 352,668 |   |
| Trade payables                                   |   |   | 16     |   |              |   | 285,612 |   |   |   | 145,454 |   |
| Other payables, including derivative instruments |   |   | 17     |   |              |   | 91,303 |   |   |   | 108,873 |   |
| Guarantee deposits from customers                |   |   | 18     |   |              |   | 56,833 |   |   |   | — |   |
| Provisions                                       |   |   | 19     |   |              |   | 119,531 |   |   |   | 41,686 |   |
| Income tax payable                               |   |   |   |   |              |   | 8,671 |   |   |   | 4,705 |   |
| Total current liabilities                        |   |   |   |   |              |   | 1,044,763 |   |   |   | 653,386 |   |
|                                             |   |   |   |   |              |   |   |   |   |   |   |   |
| Non-current liabilities                          |   |   |   |   |              |   |   |   |   |   |   |   |
| Loans, excluding current portion                 |   |   | 15     |   |              |   | 1,972,926 |   |   |   | 1,709,063 |   |
| Debentures, excluding current portion            |   |   | 15     |   |              |   | 856,670 |   |   |   | 655,847 |   |
| Derivative instruments                           |   |   | 17     |   |              |   | 44,637 |   |   |   | 35,625 |   |
| Deferred taxes, net                              |   |   | 26     |   |              |   | 225,354 |   |   |   | 138,083 |   |
| Trade payables                                   |   |   | 16     |   |              |   | 44,057 |   |   |   | — |   |
| Other non-current liabilities                    |   |   |   |   |              |   | 55,182 |   |   |   | 27,218 |   |
| Total non-current liabilities                    |   |   |   |   |              |   | 3,198,826 |   |   |   | 2,565,836 |   |
|                                             |   |   |   |   |              |   |   |   |   |   |   |   |
| Total liabilities                                |   |   |   |   |              |   | 4,243,589 |   |   |   | 3,219,222 |   |
|                                             |   |   |   |   |              |   |   |   |   |   |   |   |
| Equity                                           |   |   | 21     |   |              |   |   |   |   |   |   |   |
| Share capital                                    |   |   |   |   |              |   | 1,267,450 |   |   |   | 1,267,210 |   |
| Shareholder transaction reserve                  |   |   |   |   |              |   | 26,559 |   |   |   | — |   |
| Translation reserve                              |   |   |   |   |              |   | (21,745 | ) |   |   | (16,916 | ) |
| Capital reserve                                  |   |   |   |   |              |   | 11,575 |   |   |   | 2,212 |   |
| Accumulated deficit                              |   |   |   |   |              |   | (602,598 | ) |   |   | (191,292 | ) |
| Equity attributable to owners of the Company     |   |   |   |   |              |   | 681,241 |   |   |   | 1,061,214 |   |
| Non-controlling interests                        |   |   |   |   |              |   | 212,963 |   |   |   | 202,341 |   |
| Total equity                                     |   |   |   |   |              |   | 894,204 |   |   |   | 1,263,555 |   |
|                                             |   |   |   |   |              |   |   |   |   |   |   |   |
| Total liabilities and equity                     |   |   |   |   |              |   | 5,137,793 |   |   |   | 4,482,777 |   |

----

|                                                                                           |   |     |   |    | For the year ended December 31 |      |
|------------------------------------------------------------------------------------------------|--------|----------|--------|---------|--------------------------------|-----------|
|                                                                                           |   |     |   |    | 2016                           |      |   | 2015 |   |   | 2014 |   |
|                                                                                           |   | Note     |   |    | $ thousands                    |      |
| Continuing Operations                                                                          |   |     |   |    |                           |      |   |   |   |   |   |   |
| Revenue                                                                                        |   |     |   |    |                           | 1,873,922 |   |   |   | 1,289,068 |   |   |   | 1,372,230 |   |
| Cost of sales and services (excluding depreciation)                                            |   |     | 22     |    |                           |      | (1,358,570 | ) |   |   | (862,855 | ) |   |   | (981,141 | ) |
| Depreciation                                                                                   |   |     |   |    |                           |      | (159,695 | ) |   |   | (110,917 | ) |   |   | (100,434 | ) |
| Gross profit                                                                                   |   |     |   |    |                           |      | 355,657 |   |   |   | 315,296 |   |   |   | 290,655 |   |
| Selling, general and administrative expenses                                                   |   |     | 23     |    |                           |      | (146,756 | ) |   |   | (103,823 | ) |   |   | (131,118 | ) |
| Gain from distribution of dividend in kind                                                     |   |     |   |    |                           |      | — |   |   |   | 209,710 |   |   |   | — |   |
| Gain from disposal of investees                                                                |   |     |   |    |                           |      | — |   |   |   | — |   |   |   | 157,137 |   |
| Gain on bargain purchase                                                                       |   |     |   |    |                           |      | — |   |   |   | — |   |   |   | 68,210 |   |
| Impairment of assets and investments                                                           |   | 10.C.a.3 |   |    |                           | (72,263   | ) |   |   | (6,541 | ) |   |   | (47,844 | ) |
| Dilution gains from reductions in equity interest held in associates                           |   |     |   | — |                           |      |   | 32,829 |   |   |   | — |   |
| Other expenses                                                                                 |   |     | 24     |    |                           |      | (5,413 | ) |   |   | (7,076 | ) |   |   | (13,970 | ) |
| Other income                                                                                   |   |     | 24     |    |                           |      | 21,010 |   |   |   | 15,450 |   |   |   | 51,037 |   |
| Operating profit from continuing operations                                                    |   |     |   |    |                           |      | 152,235 |   |   |   | 455,845 |   |   |   | 374,107 |   |
|                                                                                           |   |     |   |    |                           |      |   |   |   |   |   |   |   |   |   |   |
| Financing expenses                                                                             |   |     | 25     |    |                           |      | (189,599 | ) |   |   | (124,228 | ) |   |   | (110,179 | ) |
| Financing income                                                                               |   |     | 25     |    |                           |      | 18,481 |   |   |   | 13,412 |   |   |   | 16,243 |   |
| Financing expenses, net                                                                        |   |     |   |    |                           |      | (171,118 | ) |   |   | (110,816 | ) |   |   | (93,936 | ) |
| Provision of financial guarantee                                                               |   | 10.C.b.6 |   |    |                           | (130,193  | ) |   |   | — |   |   |   | — |   |
| Share in losses of associated companies, net of tax                                            |   |     | 10     |    |                           |      | (185,592 | ) |   |   | (186,759 | ) |   |   | (170,897 | ) |
| Profit from continuing operations before income taxes                                          |   |     |   |    |                           |      | (334,668 | ) |   |   | 158,270 |   |   |   | 109,274 |   |
| Income taxes                                                                                   |   |     | 26     |    |                           |      | (59,334 | ) |   |   | (62,378 | ) |   |   | (103,341 | ) |
| (Loss)/Profit for the year from continuing operations                                          |   |     |   |    |                           |      | (394,002 | ) |   |   | 95,892 |   |   |   | 5,933 |   |
| (Loss)/Profit for the year from discontinued operations                                        |   |     | 28     |    |                           |      | — |   |   |   | — |   |   |   | 470,421 |   |
| (Loss)/Profit for the year                                                                     |   |     |   |    |                           |      | (394,002 | ) |   |   | 95,892 |   |   |   | 476,354 |   |
|                                                                                           |   |     |   |    |                           |      |   |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                                               |   |     |   |    |                           |      |   |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                                                     |   |     |   |    |                           |      | (411,937 | ) |   |   | 72,992 |   |   |   | 458,161 |   |
| Non-controlling interests                                                                      |   |     |   |    |                           |      | 17,935 |   |   |   | 22,900 |   |   |   | 18,193 |   |
| (Loss)/Profit for the year                                                                     |   |     |   |    |                           |      | (394,002 | ) |   |   | 95,892 |   |   |   | 476,354 |   |
|                                                                                           |   |     |   |    |                           |      |   |   |   |   |   |   |   |   |   |   |
| Basic/diluted (loss)/profit per share attributable to Kenon’s shareholders (in dollars): |   |     | 27     |    |                           |      |   |   |   |   |   |   |   |   |   |   |
| Basic/diluted profit/(loss) per share                                                          |   |     |   |    |                           |      | (7.67 | ) |   |   | 1.36 |   |   |   | 8.58 |   |
| Basic/diluted profit/(loss) per share from continuing operations                               |   |     |   | (7.67   | )                              |      |   | 1.36 |   |   |   | (0.23 | ) |
| Basic/diluted profit/(loss) per share from discontinued operations                             |   |     |   | — |                           |      |   | — |   |   |   | 8.81 |   |

----

|                                                                                                   |   | For the year ended December 31 |     |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                                                   |   | 2016                           |     |   | 2015 |   |   | 2014 |   |
|                                                                                                   |   | $ thousands                    |     |
|                                                                                                   |   |                           |     |   |   |   |   |   |   |
| (Loss)/Profit for the year                                                                             |   |                           | (394,002 | ) |   |   | 95,892 |   |   |   | 476,354 |   |
|                                                                                                   |   |                           |     |   |   |   |   |   |   |   |   |   |
| Items that will be subsequently reclassified to profit or loss                                         |   |                           |     |   |   |   |   |   |   |   |   |   |
| Foreign currency translation differences in respect of foreign operations                              |   |                           | 157      |   |   |   | (18,132 | ) |   |   | (10,782 | ) |
| Foreign currency translation differences in respect of foreign operations recognised in profit or loss |   |                           | —  |   |   |   | — |   |   |   | (24,891 | ) |
| Change in fair value of derivatives used to hedge cash flows                                           |   |                           | 14,397   |   |   |   | (6,365 | ) |   |   | (13,144 | ) |
| Group’s share in other comprehensive loss of associated companies                                |   |                           | (3,968   | ) |   |   | (623 | ) |   |   | (7,306 | ) |
| Income taxes in respect of components other comprehensive (loss)/income                                |   |                           | (1,507   | ) |   |   | 773 |   |   |   | 2,303 |   |
| Components of net other comprehensive loss in respect from discontinued operations                     |   |                           | —  |   |   |   | — |   |   |   | (4,025 | ) |
| Total                                                                                                  |   |                           | 9,079    |   |   |   | (24,347 | ) |   |   | (57,845 | ) |
|                                                                                                   |   |                           |     |   |   |   |   |   |   |   |   |   |
| Items that will not be reclassified to profit or loss                                                  |   |                           |     |   |   |   |   |   |   |   |   |   |
| Group’s share in net other comprehensive loss of associate companies                             |   |                           | —  |   |   |   | — |   |   |   | (3,978 | ) |
|                                                                                                   |   |                           |     |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income/(loss) for the year                                                   |   |                           | 9,079    |   |   |   | (24,347 | ) |   |   | (61,823 | ) |
| Total comprehensive (loss)/income for the year                                                         |   |                           | (384,923 | ) |   |   | 71,545 |   |   |   | 414,531 |   |
|                                                                                                   |   |                           |     |   |   |   |   |   |   |   |   |   |
| Attributable to:                                                                                       |   |                           |     |   |   |   |   |   |   |   |   |   |
| Kenon’s shareholders                                                                             |   |                           | (407,749 | ) |   |   | 52,423 |   |   |   | 400,815 |   |
| Non-controlling interests                                                                              |   |                           | 22,826   |   |   |   | 19,122 |   |   |   | 13,716 |   |
|                                                                                                   |   |                           |     |   |   |   |   |   |   |   |   |   |
| Total comprehensive (loss)/income for the year                                                         |   |                           | (384,923 | ) |   |   | 71,545 |   |   |   | 414,531 |   |

----

|                                                             |   |                                           |      |   |        |   |    |        |   |   |     |   |   |        |    |   |   |   |     | Non-        |   |   |      |   |
|------------------------------------------------------------------|--------|------------------------------------------------|-----------|--------|-------------|--------|---------|-------------|--------|--------|----------|--------|--------|-------------|---------|--------|--------|--------|----------|-------------|--------|--------|-----------|--------|
|                                                             |   |                                           |      |   |        |   |    |        |   |   |     |   |   |        |    |   |   |   |     | controlling |   |   |      |   |
|                                                             |   | Attributable to the Kenon’s shareholders |      |   | interests   |   |    | Total       |   |
|                                                             |   |                                           |      |   | Shareholder |   |    |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |
|                                                             |   | Share                                          |      |   | transaction |   |    | Translation |   |   | Capital  |   |   | Accumulated |    |   |   |   |     |        |   |   |      |   |
|                                                             |   | Capital                                        |      |   | reserve     |   |    | reserve     |   |   | reserves |   |   | deficit     |    |   | Total  |   |     |        |   |   |      |   |
|                                                             |   | $ thousands                                    |      |
|                                                             |   |                                           |      |   |        |   |    |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |
| Balance at January 1, 2016                                  |   |                                           | 1,267,210 |   |        |   | — |        |   |   | (16,916  | )      |   |        | 2,212   |   |   |   | (191,292 | )           |   |   | 1,061,214 |   |   |   | 202,341 |   |   |   | 1,263,555 |   |
| Share based payments                                             |   |                                           | 240       |   |        |   | — |        |   |   | —  |   |   |        | 307     |   |   |   | —  |        |   |   | 547       |   |   |   | 285 |   |   |   | 832 |   |
| Dividend to holders of non-controlling interests in a subsidiary |   |                                           | —   |   |        |   | — |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | —   |   |   |   | (35,255 | ) |   |   | (35,255 | ) |
| Acquisition of non- controlling interest in subsidiary           |   |                                           | —   |   |        |   | — |        |   |   | —  |   |   |        | — |   |   |   | 670      |        |   |   | 670       |   |   |   | 20,325 |   |   |   | 20,995 |   |
| Contribution from non-controlling interest                       |   |                                           | —   |   |        |   | — |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | —   |   |   |   | 2,441 |   |   |   | 2,441 |   |
| Transactions with controlling shareholder (see Note 10.C.b.7)    |   |                                           | —   |   |        |   | 3,540   |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | 3,540     |   |   |   | — |   |   |   | 3,540 |   |
| Gain in fair value of shareholder loan (see Note 10.C.b.5)       |   |                                           | —   |   |        |   | 23,019  |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | 23,019    |   |   |   | — |   |   |   | 23,019 |   |
| Total comprehensive income for the year                          |   |                                           |      |   |        |   |    |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |   |   |   |   |   |   |   |   |
| Net (loss)/profit for the year                                   |   |                                           | —   |   |        |   | — |        |   |   | —  |   |   |        | — |   |   |   | (411,937 | )           |   |   | (411,937  | )      |   |   | 17,935 |   |   |   | (394,002 | ) |
| Other comprehensive (loss)/income for the year, net of tax       |   |                                           | —   |   |        |   | — |        |   |   | (4,829   | )      |   |        | 9,056   |   |   |   | (39      | )           |   |   | 4,188     |   |   |   | 4,891 |   |   |   | 9,079 |   |
| Balance at December 31, 2016                                     |   |                                           | 1,267,450 |   |        |   | 26,559  |        |   |   | (21,745  | )      |   |        | 11,575  |   |   |   | (602,598 | )           |   |   | 681,241   |   |   |   | 212,963 |   |   |   | 894,204 |   |

----

|                                                                                                              |   |                                           |      |   |       |   |       |        |   |   |     |   |   |        |    |   |   |   |     | Non-        |   |   |      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|-----------|--------|------------|--------|------------|-------------|--------|--------|----------|--------|--------|-------------|---------|--------|--------|--------|----------|-------------|--------|--------|-----------|--------|
|                                                                                                              |   |                                           |      |   |       |   |       |        |   |   |     |   |   |        |    |   |   |   |     | controlling |   |   |      |   |
|                                                                                                              |   | Attributable to the Kenon’s shareholders |      |   | interests  |   |       | Total       |   |
|                                                                                                              |   |                                           |      |   | Former     |   |       |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |
|                                                                                                              |   |                                           |      |   | Parent     |   |       |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |
|                                                                                                              |   | Share                                          |      |   | company    |   |       | Translation |   |   | Capital  |   |   | Accumulated |    |   |   |   |     |        |   |   |      |   |
|                                                                                                              |   | Capital                                        |      |   | investment |   |       | reserve     |   |   | reserves |   |   | deficit     |    |   | Total  |   |     |        |   |   |      |   |
|                                                                                                              |   | $ thousands                                    |      |
|                                                                                                              |   |                                           |      |   |       |   |       |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |
| Balance at January 1, 2015                                                                                   |   |                                           | —   |   |       |   | 1,227,325  |        |   |   | 28,440   |   |   |        | (25,274 | )      |   |   | —  |        |   |   | 1,230,491 |   |   |   | 207,207 |   |   |   | 1,437,698 |   |
| Share based payments                                                                                              |   |                                           | —   |   |       |   | —    |        |   |   | —  |   |   |        | 556     |   |   |   | —  |        |   |   | 556       |   |   |   | 320 |   |   |   | 876 |   |
| Dividend to holders of non-controlling interests in a subsidiary                                                  |   |                                           | —   |   |       |   | —    |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | —   |   |   |   | (12,340 | ) |   |   | (12,340 | ) |
| Acquisition of non- controlling interest in subsidiary                                                            |   |                                           | —   |   |       |   | —    |        |   |   | —  |   |   |        | — |   |   |   | (1,222   | )           |   |   | (1,222    | )      |   |   | (18,078 | ) |   |   | (19,300 | ) |
| Reclassification of net loss (pre spin-off)                                                                       |   |                                           | —   |   |       |   | 8,552      |        |   |   | —  |   |   |        | — |   |   |   | (8,552   | )           |   |   | —   |   |   |   | — |   |   |   | — |   |
| Contribution from former parent company                                                                           |   |                                           | —   |   |       |   | 34,271     |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | 34,271    |   |   |   | — |   |   |   | 34,271 |   |
| Issuance of shares of subsidiary to holders of non-controlling interests                                          |   |                                           | —   |   |       |   | —    |        |   |   | —  |   |   |        | — |   |   |   | —  |        |   |   | —   |   |   |   | 6,110 |   |   |   | 6,110 |   |
| Distribution of dividend in kind (see note 10.C.c)                                                                |   |                                           | (14,062   | )      |       |   | —    |        |   |   | 498      |   |   |        | — |   |   |   | (241,741 | )           |   |   | (255,305  | )      |   |   | — |   |   |   | (255,305 | ) |
| Issuance of common stock and reclassification of former parent company investment in connection with the spin-off |   |                                           | 1,281,272 |   |       |   | (1,283,550 | )           |   |   | (28,440  | )      |   |        | 30,718  |   |   |   | —  |        |   |   | —   |   |   |   | — |   |   |   | — |   |
| Post spin-off adjustment                                                                                          |   |                                           | —   |   |       |   | 13,402     |        |   |   | —  |   |   |        | — |   |   |   | (13,402  | )           |   |   | —   |   |   |   | — |   |   |   | — |   |
| Total comprehensive income for the year                                                                           |   |                                           |      |   |       |   |       |        |   |   |     |   |   |        |    |   |   |   |     |        |   |   |      |   |   |   |   |   |   |   |   |   |
| Net profit for the year                                                                                           |   |                                           | —   |   |       |   | —    |        |   |   | —  |   |   |        | — |   |   |   | 72,992   |        |   |   | 72,992    |   |   |   | 22,900 |   |   |   | 95,892 |   |
| Other comprehensive (loss)/income for the year, net of tax                                                        |   |                                           | —   |   |       |   | —    |        |   |   | (17,414  | )      |   |        | (3,788  | )      |   |   | 633      |        |   |   | (20,569   | )      |   |   | (3,778 | ) |   |   | (24,347 | ) |
| Balance at December 31, 2015                                                                                      |   |                                           | 1,267,210 |   |       |   | —    |        |   |   | (16,916  | )      |   |        | 2,212   |   |   |   | (191,292 | )           |   |   | 1,061,214 |   |   |   | 202,341 |   |   |   | 1,263,555 |   |

----

|                                                                              |   |                                           |    |   |       |   |      |        |   |   |     |   |   |   |    |   | Non-        |   |      |   |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------|---------|--------|------------|--------|-----------|-------------|--------|--------|----------|--------|--------|--------|---------|--------|-------------|--------|-----------|--------|--------|
|                                                                              |   |                                           |    |   |       |   |      |        |   |   |     |   |   |   |    |   | controlling |   |      |   |   |
|                                                                              |   | Attributable to the Kenon’s shareholders |    |   | interests  |   |      | Total       |   |
|                                                                              |   |                                           |    |   | Former     |   |      |        |   |   |     |   |   |   |    |   |        |   |      |   |   |
|                                                                              |   |                                           |    |   | Parent     |   |      |        |   |   |     |   |   |   |    |   |        |   |      |   |   |
|                                                                              |   | Share                                          |    |   | company    |   |      | Translation |   |   | Capital  |   |   |   |    |   |        |   |      |   |   |
|                                                                              |   | Capital                                        |    |   | investment |   |      | reserve     |   |   | reserves |   |   | Total  |    |   |        |   |      |   |   |
|                                                                              |   | $ thousands                                    |    |
|                                                                              |   |                                           |    |   |       |   |      |        |   |   |     |   |   |   |    |   |        |   |      |   |   |
| Balance at January 1, 2014                                                   |   |                                           | — |   |       |   | 658,654   |        |   |   | 72,181   |   |   |   | (21,205 | )      |        |   | 709,630   |   |   |   | 236,180 |   |   |   | 945,810 |   |
| Acquisition of shares of subsidiary from holders of rights not conferring control |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | 5,550 |   |   |   | 5,550 |   |
| Dividend to holders of non-controlling interests in a subsidiary                  |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | (17,518 | ) |   |   | (17,518 | ) |
| Loss of control in a subsidary                                                    |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | (86,743 | ) |   |   | (86,743 | ) |
| Non-controlling interest in respect of business combination                       |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | 35,800 |   |   |   | 35,800 |   |
| Non-controlling shareholder contribution                                          |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | 19,577 |   |   |   | 19,577 |   |
| Share based payments in a subsidiary                                              |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | 428 |   |   |   | 428 |   |
| Share based payments in Kenon                                                     |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | 5,444   |   |        |   | 5,444     |   |   |   | — |   |   |   | 5,444 |   |
| Contribution from former parent company                                           |   |                                           | — |   |       |   | 414,649   |        |   |   | —  |   |   |   | — |   |        |   | 414,649   |   |   |   | — |   |   |   | 414,649 |   |
| Payments to former parent company                                                 |   |                                           | — |   |       |   | (300,047  | )           |   |   | —  |   |   |   | — |   |        |   | (300,047  | )      |   |   | — |   |   |   | (300,047 | ) |
| Transactions with controlling shareholders                                        |   |                                           | — |   |       |   | —   |        |   |   | —  |   |   |   | — |   |        |   | —   |   |   |   | 217 |   |   |   | 217 |   |
| Total comprehensive income for the year                                           |   |                                           |    |   |       |   |      |        |   |   |     |   |   |   |    |   |        |   |      |   |   |   |   |   |   |   |   |   |
| Income for the year                                                               |   |                                           | — |   |       |   | 458,161   |        |   |   | —  |   |   |   | — |   |        |   | 458,161   |   |   |   | 18,193 |   |   |   | 476,354 |   |
| Other comprehensive loss for the year, net of tax                                 |   |                                           | — |   |       |   | (4,092    | )           |   |   | (43,741  | )      |   |   | (9,513  | )      |        |   | (57,346   | )      |   |   | (4,477 | ) |   |   | (61,823 | ) |
| Balance at December 31, 2014                                                      |   |                                           | — |   |       |   | 1,227,325 |        |   |   | 28,440   |   |   |   | (25,274 | )      |        |   | 1,230,491 |   |   |   | 207,207 |   |   |   | 1,437,698 |   |

----

|                                              |   | For the year ended December 31 |     |
|---------------------------------------------------|--------|--------------------------------|----------|
|                                              |   | 2016                           |     |   | 2015 |   |   | 2014 |   |
|                                              |   | $ thousands                    |     |
|                                              |   |                           |     |   |   |   |   |   |   |
| Cash flows from operating activities              |   |                           |     |   |   |   |   |   |   |
| (Loss)/Profit for the year                        |   |                           | (394,002 | ) |   |   | 95,892 |   |   |   | 476,354 |   |
| Adjustments:                                      |   |                           |     |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                     |   |                           | 172,381  |   |   |   | 120,047 |   |   |   | 188,171 |   |
| Impairment of assets and investments              |   |                           | 72,263   |   |   |   | 6,541 |   |   |   | 47,844 |   |
| Financing expenses, net                           |   |                           | 171,118  |   |   |   | 110,816 |   |   |   | 195,405 |   |
| Share in losses of associated companies, net      |   |                           | 185,592  |   |   |   | 186,759 |   |   |   | 168,044 |   |
| Capital losses/(gains), net *                     |   |                           | 2,534    |   |   |   | 4,506 |   |   |   | (767,216 | ) |
| Gain from changes in interest held in associates  |   |                           | —  |   |   |   | (32,829 | ) |   |   | — |   |
| Gain from distribution of dividend in kind        |   |                           | —  |   |   |   | (209,710 | ) |   |   | — |   |
| Provision for financial guarantee                 |   |                           | 130,193  |   |   |   | — |   |   |   | — |   |
| Bad debt expense                                  |   |                           | 4,896    |   |   |   | — |   |   |   | — |   |
| Share-based payments                              |   |                           | 832      |   |   |   | 876 |   |   |   | 8,413 |   |
| Gain on bargain purchase                          |   |                           | —  |   |   |   | — |   |   |   | (68,210 | ) |
| Income taxes                                      |   |                           | 59,334   |   |   |   | 62,378 |   |   |   | 112,825 |   |
|                                              |   |                           | 405,141  |   |   |   | 345,276 |   |   |   | 361,630 |   |
| Change in inventories                             |   |                           | (40,076  | ) |   |   | 4,361 |   |   |   | 21,991 |   |
| Change in trade and other receivables             |   |                           | (68,634  | ) |   |   | 35,491 |   |   |   | (21,523 | ) |
| Change in trade and other payables                |   |                           | 22,835   |   |   |   | (29,800 | ) |   |   | 29,830 |   |
| Change in provisions and employee benefits        |   |                           | (41,243  | ) |   |   | (33,426 | ) |   |   | 49,872 |   |
| Cash generated from operating activities          |   |                           | 278,023  |   |   |   | 321,902 |   |   |   | 441,800 |   |
| Income taxes paid, net                            |   |                           | (116,429 | ) |   |   | (36,218 | ) |   |   | (66,198 | ) |
| Dividends received from investments in associates |   |                           | 743      |   |   |   | 4,487 |   |   |   | 34,774 |   |
| Net cash provided by operating activities         |   |                           | 162,337  |   |   |   | 290,171 |   |   |   | 410,376 |   |

----

|                                                                                                 |   | For the year ended December 31 |     |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                                                 |   | 2016                           |     |   | 2015 |   |   | 2014 |   |
|                                                                                                 |   | $ thousands          |     |
| Cash flows from investing activities                                                                 |   |                           |     |   |   |   |   |   |   |
| Proceeds from sale of property, plant and equipment and intangible assets                            |   |                           | 426      |   |   |   | 539 |   |   |   | 17,449 |   |
| Short-term deposits and loans, net                                                                   |   |                           | 222,451  |   |   |   | (83,408 | ) |   |   | (253,097 | ) |
| Cash paid for businesses purchased, less cash acquired                                               |   |                           | (206,059 | ) |   |   | (9,441 | ) |   |   | (67,180 | ) |
| Disposal of subsidiary, net of cash disposed of and exit from combination                            |   |                           | —  |   |   |   | — |   |   |   | 1,758 |   |
| Investment in associates                                                                             |   |                           | (111,153 | ) |   |   | (129,241 | ) |   |   | (179,355 | ) |
| Sale of securities held for trade and available for sale, net                                        |   |                           | 17,334   |   |   |   | 13,217 |   |   |   | — |   |
| Acquisition of property, plant and equipment                                                         |   |                           | (280,955 | ) |   |   | (515,838 | ) |   |   | (425,184 | ) |
| Acquisition of intangible assets                                                                     |   |                           | (9,598   | ) |   |   | (16,844 | ) |   |   | (11,496 | ) |
| Interest received                                                                                    |   |                           | 6,143    |   |   |   | 7,924 |   |   |   | 3,934 |   |
| Exit from the combination and transition to associate company less cash eliminated (See Note 28 (a)) |   |                           | —  |   |   |   | — |   |   |   | (310,918 | ) |
| Proceeds from sale of associate company                                                              |   |                           | —  |   |   |   | — |   |   |   | 359,891 |   |
| Payments for derivative investments used for hedging, net                                            |   |                           | —  |   |   |   | — |   |   |   | (16,100 | ) |
| Payment of consideration retained                                                                    |   |                           | (2,204   | ) |   |   | (3,795 | ) |   |   | — |   |
| Payment to release financial guarantee                                                               |   |                           | (36,023  | ) |   |   | — |   |   |   | — |   |
| Settlement of derivatives                                                                            |   |                           | —  |   |   |   | — |   |   |   | (2,038 | ) |
| Net cash used in investing activities                                                                |   |                           | (399,638 | ) |   |   | (736,887 | ) |   |   | (882,336 | ) |
|                                                                                                 |   |                           |     |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                 |   |                           |     |   |   |   |   |   |   |   |   |   |
| Dividend paid to non-controlling interests                                                           |   |                           | (32,694  | ) |   |   | (12,340 | ) |   |   | (17,518 | ) |
| Proceeds from issuance of shares to holders of non-controlling interests in subsidiaries             |   |                           | 9,468    |   |   |   | 6,110 |   |   |   | 19,577 |   |
| Receipt of long-term loans and issuance of debentures                                                |   |                           | 799,481  |   |   |   | 333,549 |   |   |   | 744,183 |   |
| Repayment of long-term loans and debentures                                                          |   |                           | (444,976 | ) |   |   | (138,270 | ) |   |   | (173,868 | ) |
| Short-term credit from banks and others, net                                                         |   |                           | (5,477   | ) |   |   | 123,053 |   |   |   | (86,072 | ) |
| Contribution from former parent company                                                              |   |                           | —  |   |   |   | 34,271 |   |   |   | 414,649 |   |
| Payments for transactions in derivative for hedging, net                                             |   |                           | —  |   |   |   | — |   |   |   | (427 | ) |
| Payment to the former parent company                                                                 |   |                           | —  |   |   |   | — |   |   |   | (300,047 | ) |
| Purchase of non-controlling interest                                                                 |   |                           | —  |   |   |   | (20,000 | ) |   |   | — |   |
| Interest paid                                                                                        |   |                           | (151,241 | ) |   |   | (93,858 | ) |   |   | (170,885 | ) |
| Net cash provided by financing activities                                                            |   |                           | 174,561  |   |   |   | 232,515 |   |   |   | 429,592 |   |
|                                                                                                 |   |                           |     |   |   |   |   |   |   |   |   |   |
| Decrease in cash and cash equivalents                                                                |   |                           | (62,740  | ) |   |   | (214,201 | ) |   |   | (42,368 | ) |
| Cash and cash equivalents at beginning of the year                                                   |   |                           | 383,953  |   |   |   | 610,056 |   |   |   | 670,976 |   |
| Effect of exchange rate fluctuations on balances of cash and cash equivalents                        |   |                           | 5,422    |   |   |   | (11,902 | ) |   |   | (18,552 | ) |
| Cash and cash equivalents at end of the year                                                         |   |                           | 326,635  |   |   |   | 383,953 |   |   |   | 610,056 |   |
|                                                                                                 |   |                           |     |   |   |   |   |   |   |   |   |   |
| Significant non-cash investing transactions:                                                         |   |                           |     |   |   |   |   |   |   |   |   |   |
| Acquisition of fixed assets under lease contract                                                     |   |                           | —  |   |   |   | — |   |   |   | (107,688 | ) |
| Purchase of fixed assets on credit and others                                                        |   |                           | (24,620  | ) |   |   | (46,327 | ) |   |   | (9,000 | ) |

----

|  | A. | The Reporting Entity |
|--|----|----------------------|

|  | B. | The split-up of Israel Corporation’s holdings |
|--|----|-----------------------------------------------------|

|  | 1. | The split-up included: |
|--|----|------------------------|

|  | a) | IC’s undertaking in the separation agreement (as detailed in Note 30H) with its then wholly owned subsidiary, Kenon, which included (among other things): (i) transfer of the holdings in the companies being transferred to Kenon, as stated above, and transfer of certain rights and liabilities in relation to the companies being transferred from IC to Kenon; (ii) execution of an investment in the capital of Kenon in the amount of $35 million and (iii) issuance of shares of Kenon to IC in respect of the assets and rights to be transferred from IC to Kenon and |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b) | IC’s undertaking in a loan agreement whereby, among other things, IC provided Kenon a credit framework in an aggregate amount of up to $200 million, Kenon would pay an annual commitment fee equal to 2.1% of the undrawn amount of the credit facility and an annual interest of Libor+6% interest on the drawn amount, and in the framework thereof it will be provided that in a case of realization of guarantees that IC will remain responsible for with respect to Qoros, the amount for which IC will be liable in a case of realization of these guarantees will be considered a debt of Kenon to IC and the provisions of the loan agreement will apply to it. IC’s back-to-back guarantee of Qoros’ debt was fully released on January 4, 2016. As of December 31, 2016, Kenon has fully drawn its $200 million credit facility from IC. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | c) | Distribution to IC’s shareholders as a dividend in kind of the shares of Kenon; including registration of these shares for trading, both on NYSE and on TASE; |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | The internal restructuring of I.C. Power |
|--|----|------------------------------------------|

|  | D. | The reporting periods prior to January 1, 2015 |
|--|----|------------------------------------------------|

----

|  | E. | Definitions |
|--|----|-------------|

----

|  | A. | Declaration of compliance with International Financial Reporting Standards (IFRS) |
|--|----|-----------------------------------------------------------------------------------|

|  | B. | Functional and presentation currency |
|--|----|--------------------------------------|

|  | C. | Basis of measurement |
|--|----|----------------------|

|  | • | Derivative financial instruments. |
|--|---------|-----------------------------------|

|  | • | Deferred tax assets and liabilities. |
|--|---------|--------------------------------------|

|  | • | Provisions. |
|--|---------|-------------|

|  | • | Assets and liabilities in respect of employee benefits. |
|--|---------|---------------------------------------------------------|

|  | • | Investments in associates. |
|--|---------|----------------------------|

|  | D. | Use of estimates and judgment |
|--|----|-------------------------------|

|  | 1. | Useful life of property, plant and equipment Property, plant and equipment is depreciated using the straight-line method over its estimated useful life. At every year-end, or more often if necessary, management examines the estimated useful life of the property, plant and equipment by comparing it to the benchmark in the relevant industry, taking into account the level of maintenance and functioning over the years. If necessary, on the basis of this evaluation, the Group adjusts the estimated useful life of the property, plant and equipment. A change in estimates in subsequent periods could materially increase or decrease future depreciation expense. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 2. | Recoverable amount of non-financial assets and Cash Generating Units Each reporting date, the management of the Group examines whether there have been any events or changes in circumstances which would indicate impairment of one or more of its non-financial assets or Cash Generating Units (“CGUs”). When there are indications of impairment, an examination is made as to whether the carrying amount of the non-financial assets or CGUs exceeds their recoverable amount, and if necessary, an impairment loss is recognized. Assessment of the impairment of goodwill and of other intangible assets having an indeterminable life is performed at least once a year or when signs of impairment exist. The recoverable amount of the asset or CGU is determined based on the higher of the fair value less selling costs of the asset or CGU and the present value of the future cash flows expected from the continued use of the asset or CGU in its present condition, including the cash flows expected upon retiring the asset from service and its eventual sale (value in use). The future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. The estimates regarding future cash flows are based on past experience with respect to this asset or similar assets (or CGUs), and on the Group’s best possible assessments regarding the economic conditions that will exist during the remaining useful life of the asset or CGU. The estimate of the future cash flows relies on the Group’s budget and other forecasts. Since the actual cash flows may differ, the recoverable amount determined could change in subsequent periods, such that an additional impairment loss needs to be recognized or a previously recognized impairment loss needs to be reversed. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Fair value of derivative financial instruments The Group is a party to derivative financial instruments used to hedge foreign currency risks, interest risks and price risks. The derivatives are recorded based on their respective fair values. The fair value of the derivative financial instruments is determined using acceptable valuation techniques that characterize the different derivatives, maximizing the use of observable inputs. Fair value measurement of long-term derivatives takes into account the counterparties credit risks. Changes in the economic assumptions and/or valuation techniques could give rise to significant changes in the fair value of the derivatives. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Separation of embedded derivatives Management of the Group exercises significant judgment in determining whether it is necessary to separate an embedded derivative from a host contract. If it is determined that the embedded derivative is not closely related to the host contract and that it is necessary to separate the embedded derivative, this component is measured separately from the host contract as a financial instrument at fair value through profit or loss. Otherwise, the entire instrument is measured in accordance with the measurement principles applicable to the host contract. Changes in the fair value of separable embedded derivatives are recognized immediately in profit or loss, as financing income or expenses. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | Deferred tax assets Deferred tax assets are recorded in relation to unutilized tax losses, as well as with respect to deductible temporary differences. Since such deferred tax assets may only be recognized where it is probable that there will be future taxable income against which said losses may be utilized, use of discretion by management of the Group is required in order to assess the probability that such future taxable income will exist. Management’s assessment is re-examined on a current basis and deferred tax assets are recognized if it is probable that future taxable income will permit recovery of the deferred tax assets. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 6. | Business Combinations The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase gain is recognized in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are recognized in profit or loss. Any contingent consideration is measured at fair value at the acquisition date. If an obligation to pay contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in profit or loss. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7. | Contingent Liabilities From time to time, the Group is involved in routine litigation that arises in the ordinary course of business. Provisions for litigation are recognized as set out in Note 3(P). Contingent liabilities for litigation and other claims do not result in provisions, but are disclosed in Note 20. The outcomes of legal proceedings with the Group are subjected to significant uncertainty and changes in factors impacting management’s assessments could materially impact the consolidated financial statements. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | Basis for consolidation/ combination |
|----|--------------------------------------|

|  | (1) | Business combinations |
|--|-----|-----------------------|

----

|  | (5) | Investments in equity-accounted investees |
|--|-----|-------------------------------------------|

----

|  |  (6) | Loss of significant influence |
|--|-----------|-------------------------------|

|  | (7) | Change in interest held in equity accounted investees while retaining significant influence |
|--|-----|---------------------------------------------------------------------------------------------|

|  |  (8) | Intra-group Transactions |
|--|-----------|--------------------------|

|  | (9) | Reorganizations under Common Control Transactions |
|--|-----|---------------------------------------------------|

----

| B. | Foreign currency |
|----|------------------|

|  | (1) | Foreign currency transactions |
|--|-----|-------------------------------|

|  | (2) | Foreign operations |
|--|-----|--------------------|

----

| C. | Financial instruments |
|----|-----------------------|

|  |  (1) | Non-derivative financial assets and financial liabilities - recognition and de-recognition |
|--|-----------|--------------------------------------------------------------------------------------------|

|  |  (2) | Non-derivative financial assets – measurement |
|--|-----------|-----------------------------------------------------|

| Financial assets at fair value through profit and loss | A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such on initial recognition. Directly attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein, including any interest or dividend income, are recognized in profit or loss.                                                                    |
|--------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Held-to-maturity financial assets                      | These assets are initially recognized at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method.                                                                                                                                                                                                                                                                                          |
|                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Loans and receivables                                  | These assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method, less any impairment losses.                                                                                                                                                                                                                                                              |
|                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Available-for-sale financial assets                    | These assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on debt instruments, are recognized in Other Comprehensive Income (“OCI”) and accumulated in the fair value reserve. When these assets are derecognized, the gain or loss accumulated in equity is reclassified to profit or loss. |

|  |  (3) |  Non-derivative financial liabilities - Measurement |
|--|-----------|----------------------------------------------------------|

----

|  |  (4) | Derivative financial instruments and hedge accounting |
|--|-----------|-------------------------------------------------------|

|  |  (5) | Cash flow hedges |
|--|-----------|------------------|

|  |  (6) | Financial guarantees |
|--|-----------|----------------------|

| D. | Cash and Cash Equivalents |
|----|---------------------------|

| E. | Property, plant and equipment, net |
|----|------------------------------------|

|  | (1) | Recognition and measurement |
|--|-----|-----------------------------|

|  |  • | The cost of materials and direct labor; |
|--|---------------|-----------------------------------------|

|  |  • | Any other costs directly attributable to bringing the assets to a working condition for their intended use; |
|--|---------------|-------------------------------------------------------------------------------------------------------------|

|  |  • | When the Group has an obligation to remove the assets or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located; and |
|--|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  • | Capitalized borrowing costs. |
|--|---------------|------------------------------|

|  | (2) | Subsequent Cost |
|--|-----|-----------------|

|  | (3) | Depreciation |
|--|-----|--------------|

----

|                                                   |   | Years  |          |
|--------------------------------------------------------|--------|--------|---------------|
| Roads, buildings and leasehold improvements            |   |   | 2 – 50  |   |
| Installations, machinery and equipment:                |   |   |          |   |
| Thermal power plants                                   |   |   | 10 – 35 |   |
| Hydro-electric plants                                  |   |   | 70 – 90 |   |
| Wind power plants                                      |   |   | 25            |   |
| Power generation and electrical                        |   |   | 20            |   |
| Dams                                                   |   |   | 18 – 80 |   |
| Office furniture, motor vehicles and other equipment   |   |   | 3 – 16  |   |
| Substations, medium voltage equipment and transf.MV/LV |   |   | 30 – 40 |   |
| Meters and connections                                 |   |   | 10 – 25 |   |

| F. | Intangible assets, net |
|----|------------------------|

|  | (1) | Recognition and measurement |
|--|-----|-----------------------------|

|                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       Goodwill                 | Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses. In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the investment; and any impairment loss is allocated to the carrying amount of the equity investee as a whole.                                                                                                                                                                                                                                                                                                            |
|                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|       Research and development | Expenditures on research activities is recognized in profit and loss as incurred.Development activities involve expenditures incurred in relation to the design and evaluation of future power plant projects before the technical feasibility and commercial viability is fully completed, however the Group intends to and has sufficient resources to complete the development and to use or sell the asset.At each reporting date, the management of the Group performs an evaluation of each project in order to identify facts and circumstances that suggest that the carrying amount of the assets may exceed their recoverable amount.  |
|       Concessions         | Intangible assets granted by the Energy and Mining Ministry of Guatemala to DEORSA and DEOCSA to operate power distribution business in defined geographic areas, and acquired as part of business combination. The Group measures Concessions at cost less accumulated amortization and any accumulated impairment losses.                                                                                                                                                                                                                                                                                                                           |

|          Customer relationships  | Intangible assets acquired as part of a business combination and are recognized separately from goodwill if the assets are separable or arise from contractual or other legal rights and their fair value can be measured reliably. Customer relationships are measured at cost less accumulated amortization and any accumulated impairment losses. |
|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                     |                                                                                                                                                                                                                                                                                                                                                 |
|          Other intangible assets | Other intangible assets, including licenses, patents and trademarks, which are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.                                                                                                                          |

----

|  | (2) | Amortization |
|--|-----|--------------|

|  | · | Concessions  | 33 years* |
|--|--------|-------------------|-----------|

|  | · | Customer relationships  | 1-12 years |
|--|--------|------------------------------|------------|

|  | · | Software costs  | 5 years |
|--|--------|----------------------|---------|

|  | · | Others | 5-27 years |
|--|--------|--------|------------|

| G. | Subsequent expenditure |
|----|------------------------|

| H. | Transfer of assets from customers |
|----|-----------------------------------|

| I. | Service Concession arrangements |
|----|---------------------------------|

----

| J. |   Leases |
|----|--------------------|

| K. |    Inventories |
|----|--------------------------|

| L. |    Trade Receivable, net |
|----|------------------------------------|

| M. |    Borrowing costs |
|----|------------------------------|

----

| N. |    Impairment |
|----|-------------------------|

|  | (1) | Non-derivative financial assets |
|--|-----|---------------------------------|

|  | · | Default or delinquency by a debtor; |
|--|--------|-------------------------------------|

|  | · | Restructuring of an amount due to the Group on terms that the Group would not consider otherwise; |
|--|--------|---------------------------------------------------------------------------------------------------|

|  | · | Indications that a debtor or issuer will enter bankruptcy; |
|--|--------|------------------------------------------------------------|

|  | · | Adverse changes in the payment status of borrowers or issuers; |
|--|--------|----------------------------------------------------------------|

|  | · | The disappearance of an active market for a security; or |
|--|--------|----------------------------------------------------------|

|  | · | Observable data indicating that there is measurable decrease in expected cash flows from a group of financial assets. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------|

|             Financial Assets measured at amortized costs  | The Group considers evidence of impairment for these assets at both an individual asset and a collective level. All individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually identified. Assets that are not individually significant are collectively assessed for impairment. Collective assessment is carried out by grouping together assets with similar risk characteristics. In assessing collective impairment, the group uses historical information on the timing of recoveries and the amount of loss incurred, and makes an adjustment if current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends. An impairment loss is calculated as the difference between an asset's carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit or loss.  |
|-----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Available-for-sale financial assets                                                                                   | Impairment losses on available-for-sale financial assets are recognized by reclassifying the losses accumulated in the fair value reserve to profit or loss. The amount reclassified is the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss previously recognized in profit or loss. If the fair value of an impaired available-for-sale debt security subsequently increases and the increase can be related objectively to an event occurring after the impairment loss was recognized, then the impairment loss is reversed through profit or loss; otherwise, it is reversed through OCI.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|              Equity-account investees | An impairment loss in respect of an equity-accounted investee is measured by comparing the recoverable amount of the investment with its carrying amount. An impairment loss is recognized in profit or loss, and is reversed if there has been a favorable change in the estimates used to determine the recoverable amount and only to the extent that the investment’s carrying amount, after the reversal of the impairment loss, does not exceed the carrying amount of the investment that would have been determined by the equity method if no impairment loss had been recognized. |
|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| O. | Employee benefits |
|----|-------------------|

|  | (1) | Short-term employee benefits |
|--|-----|------------------------------|

|  | (2) | Bonus plans transactions |
|--|-----|--------------------------|

|  | (3) | Termination Benefits |
|--|-----|----------------------|

|  | (4) | Defined Benefit Plans |
|--|-----|-----------------------|

----

|  | (5) | Share-based compensation plans |
|--|-----|--------------------------------|

| P. | Provisions |
|----|------------|

| Q. | Revenue recognition |
|----|---------------------|

|  | (1) | Revenue from electricity |
|--|-----|--------------------------|

----

|  |  (2) | Revenue from shipping services and related expenses (in associated company) |
|--|-----------|----------------------------------------------------------------------------------|

|  | (3) | Revenue from vehicles (in associated company) |
|--|-----|-----------------------------------------------|

|  |   (i) | Sales of vehicles |
|--|-----------------|-------------------|

|  |  (ii) | Rental income of vehicles |
|--|------------|---------------------------|

|  | (iii) | Licensing income |
|--|-------|------------------|

|  | (4) | Revenue from biodiesel |
|--|-----|------------------------|

| R. | Government grants |
|----|-------------------|

| S. | Deposits received from consumers |
|----|----------------------------------|

| T. | Transfer of assets from customers |
|----|-----------------------------------|

----

| U. | Service concession arrangements |
|----|---------------------------------|

| V. | Guarantee deposits from customers |
|----|-----------------------------------|

| W. | Energy purchase |
|----|-----------------|

| X. | Financing income and expenses |
|----|-------------------------------|

|  | · | Interest income; |
|--|--------|------------------|

|  | · | Interest expense; |
|--|--------|-------------------|

|  | · | The net gain or loss on the disposal of available-for-sale financial assets; |
|--|--------|------------------------------------------------------------------------------|

|  | · | The net gain or loss on financial assets at fair value through profit or loss; |
|--|--------|--------------------------------------------------------------------------------|

|  | · | The foreign currency gain or loss on financial assets and financial liabilities; |
|--|--------|----------------------------------------------------------------------------------|

|  | · | The fair value loss on contingent consideration classified as financial liability; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | Impairment losses recognized on financial assets (other than trade receivables); |
|--|--------|----------------------------------------------------------------------------------|

|  | · | The net gain or loss on hedging instruments that are recognized in profit or loss; and |
|--|--------|----------------------------------------------------------------------------------------|

|  | · | The reclassification of net gains previously recognized in OCI. |
|--|--------|-----------------------------------------------------------------|

----

|  | Y. | Income taxes |
|--|----|--------------|

|  | • | Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; |
|--|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Temporary differences related to investments in subsidiaries and associates where the Group is able to control the timing of the reversal of the temporary differences and it is not probable that they will reverse it in the foreseeable future; and |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Taxable temporary differences arising on the initial recognition of goodwill. |
|--|---------|-------------------------------------------------------------------------------|

----

|  | Z. | Earnings per share |
|--|----|--------------------|

|  | AA. | Share capital – ordinary shares |
|--|-----|---------------------------------------|

|  | BB. | Discontinued operation |
|--|-----|------------------------|

|  | · | Represents a separate major line of business or geographic area of operations, |
|--|--------|--------------------------------------------------------------------------------|

|  | · | Is part of a single coordinated plan to dispose of a separate major line of business or geographic area of operations; or |
|--|--------|---------------------------------------------------------------------------------------------------------------------------|

|  | · | Is a subsidiary acquired exclusively with a view to re-sell. |
|--|--------|--------------------------------------------------------------|

----

|  | CC. | Operating Segment and Geographic Information |
|--|-----|----------------------------------------------|

|  | DD. | Transactions with controlling shareholders |
|--|-----|--------------------------------------------|

|  | EE. | New standards and interpretations not yet adopted |
|--|-----|---------------------------------------------------|

----

|  | 1) | International Financial Accounting Standard IFRS 9 (2014) “Financial Instruments” – replaces the existing guidance in IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | a) | Classification of financial assets |
|--|----|------------------------------------|

|  | b) | Impairment of financial assets |
|--|----|--------------------------------|

|  | · | Changes to the current matrix, including historical and forward looking information. |
|--|--------|--------------------------------------------------------------------------------------|

|  | c) | Hedge Accounting |
|--|----|------------------|

|  | d) | Modification of financial liabilities measured at amortized cost that do not result in de-recognition |
|--|----|-------------------------------------------------------------------------------------------------------|

----

|  | 2) | International Financial Accounting Standard IFRS 15 “Revenues from Contracts with Customers” – the Standard replaces the presently existing guidelines regarding recognition of revenue from contracts with customers and provides two approaches for recognition of revenue: at one point in time or over time. The model includes five stages for analysis of transactions in order to determine the timing of recognition of the revenue and the amount thereof. In addition, the Standard provides new disclosure requirements that are more extensive that those currently in effect. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Identification of the contract: Selective Group’s contracts are subject to changes in scope or prices that requires evaluation to determine treatment of modification based on considerations to separate contracts or evaluate as integral part of the original contracts. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Performance obligations: Recognition of revenue of performance obligations that are currently not accounted for separately such as promises to make available capacity or energy on demand, and renewal options that qualify as a material right. On the other hand, recognition of revenue of transmission services paid on behalf of some customers and subsequently reimbursed are expected not to qualify as separate performance obligations, thus, no gross revenue should be recognized due to the fact that the group would be acting as an agent and a netting presentation of payment of reimbursements in the statement of profit or loss is reasonable. |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Transaction price: The Group’s contracts with customers contain variable factors that may affect its cash flow, such as stepped pricing, volume discounts, adjustments based on fuel price or operating conditions of Sistema Eléctrico Interconectado Nacional del Peru (“SEIN”) and penalties. All these features may impact the determination of the transaction price, thus, the Group expects the application of a high degree of judgment to estimate the amount of these variable consideration. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Allocation of the transaction price: For the allocation of the transaction price, the Group expects certain challenges to determine the stand alone selling prices of the several performance obligations. The Group expects to apply significant judgment to determine the stand-alone selling price for the supply energy and the other performance obligations that are not being separately recognized. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Recognition of revenue: Apart from the separation of the transaction prices in various performance obligations, the Group expects no significant impact in the timing of the revenue recognition of the major service (energy and capacity supply), this corresponds to a series of different promises that may be treated as a single performance obligation that may be recognized overtime, similar to the current treatment. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Other matters: the Group expects an enhancement in the disclosures that relates to revenue. In addition, with respect to transition, the Group plans to evaluate the results of the initial quantification of the impacts of the new standard for decision-making about the transition method to be applied. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Treatment of modifications of contracts as described in the preceding generation business section above. |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | Performance obligations: Some new performance obligations has been identified, for example, certain administrative activities that the Group carries out on behalf of some customers (municipalities). However, the Group estimate this may be considered as not material obligations. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Transaction price: The Group identifies variable consideration associated with unbilled energy. Although, this concept is currently recognized as revenue, it is expected to change the method to quantify it. In addition, considering the collectability criteria are met for those contracts, there is a significant financing component concerning contracts with customers with payment agreements. These agreements allow the customers to pay in arrears (ranging from 8 to 120 months). The practical expedient to not adjust the transaction price for the time value of money cannot be used for payment terms which establish that the period between performance and payment for that performance is more than one year. Another impact is the determination of the discount rate. This rate should reflect the individual credit risk of the specific customer. To date, the discount rate used is that published quarterly by the Regulator, Comisión Nacional de Energía Eléctrica (“CNEE”). |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Allocation of the transaction price: Similar to the generation business. |
|--|--------|--------------------------------------------------------------------------|

|  | · | Other matters: the Group expects an enhancement in the disclosures that relates to revenue. In addition, with respect to transition, the Group plans to evaluate the results of the initial quantification of the impacts of the new standard for decision-making about the transition method to be applied. |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3) | International Financial Accounting Standard IFRS 16 “Leases” The standard replaces IAS 17 – Leases and its related interpretations. The standard's instructions annul the existing requirement from lessees to classify leases as operating or finance leases. Instead of this, for lessees, the new standard presents a unified model for the accounting treatment of all leases according to which the lessee has to recognize an asset and liability in respect of the lease in its financial statements. Similarly, the standard determines new and expanded disclosure requirements from those required at present. The standard will become effective for annual periods commencing on or after January 1, 2019, with the possibility of early adoption, so long as the Group has also early adopted IFRS 15 – Revenue from contracts with customers. The standard includes a number of alternatives for the implementation of transitional provisions, so that companies can choose one of the following alternatives at the implementation date: full retrospective implementation or implementation from the effective date while adjusting the balance of retained earnings at that date. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | A. | Business Combinations |
|--|----|-----------------------|

|  | · | Fixed assets were valued considering the market value provided by an appraiser; |
|--|--------|---------------------------------------------------------------------------------|

|  | · | Intangibles consider the valuation of Concessions; |
|--|--------|----------------------------------------------------|

|  | · | Deferred taxes were valued based on the temporary differences between the accounting and tax basis of the business combination; |
|--|--------|---------------------------------------------------------------------------------------------------------------------------------|

|  | · | Non-controlling interests were measured as a proportional basis of the net assets identified on the acquisition date |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | · | Intangibles consider the valuation of its Power Purchase Agreements (PPAs); and, |
|--|--------|----------------------------------------------------------------------------------|

|  | · | Contingent liabilities were determined over the average probability established by third party legal processes. |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | B. | Cash Generating Unit for impairment testing |
|--|----|---------------------------------------------|

|  | C. | Derivatives |
|--|----|-------------|

|  | D. | Non-derivative financial liabilities |
|--|----|--------------------------------------|

----

|                                                                  |   | As at December 31 |    |
|-----------------------------------------------------------------------|--------|-------------------|---------|
|                                                                  |   | 2016              |    |   | 2015 |   |
|                                                                  |   | $ thousands       |    |
| Cash in banks                                                         |   |              | 320,199 |   |   |   | 277,442 |   |
| Time deposits (a)                                                     |   |              | 6,436   |   |   |   | 106,511 |   |
| Cash and cash equivalents for purposes of the statement of cash flows |   |              | 326,635 |   |   |   | 383,953 |   |

| (a) | Time deposits corresponds to short-term investments made for periods ranging from one day to three months, depending on immediate cash requirements of the Group, and earn interest at short-term deposit rates in US Dollars and other currencies ranging from 0.01% to 4.00% per annum. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | As at December 31 |    |
|------------------------------|--------|-------------------|---------|
|                         |   | 2016              |    |   | 2015 |   |
|                         |   | $ thousands  |    |
| Short-term bank deposits (a) |   |              | — |   |   |   | 50,000 |   |
| Restricted Cash (b)          |   |              | 89,475  |   |   |   | 251,955 |   |
|                         |   |              | 89,475  |   |   |   | 301,955 |   |
| Other                        |   |              | 70      |   |   |   | 6,747 |   |
|                         |   |              | 89,545  |   |   |   | 308,702 |   |

|  | (a) | As at December 31, 2015, corresponds to 180-day time deposits set by Inkia Americas Holdings Ltd from the proceeds of the Inkia Holdings Limited (“Acter sale”). |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Corresponds to amounts held in escrow accounts as collateral for loans and contractual obligations, such as debt service reserve accounts and time deposits that guarantee letters of credit. They earn interest at market interest rates of 0.01% to 6.2%. As at December 31, 2015, it included mainly $117 million in I.C. Power Distribution Holdings Pte. Ltd.  for the acquisition of Energuate and $50 million of distributions received by I.C. Power Israel Ltd. (“ICPI”) for the payment of mezzanine Loan-Tranch A made in January 2016.. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | As at December 31 |    |
|-------------------------------------------|--------|-------------------|---------|
|                                      |   | 2016              |    |   | 2015 |   |
|                                      |   | $ thousands       |    |
| Trade Receivables                         |   |              | 285,100 |   |   |   | 123,377 |   |
| Less – allowance for doubtful debts |   |              | (568    | ) |   |   | (104 | ) |
|                                      |   |              | 284,532 |   |   |   | 123,273 |   |

----

|                                            |   | As at December 31 |   |
|-------------------------------------------------|--------|-------------------|--------|
|                                            |   | 2016              |   |   | 2015 |   |
|                                            |   | $ thousands       |   |
| Government agencies (a)                         |   |              | 14,677 |   |   |   | 23,267 |   |
| Insurance claims (b)                            |   |              | 8,809  |   |   |   | 3,944 |   |
| Advances to suppliers                           |   |              | 141    |   |   |   | 306 |   |
| Transmission line sale (c)                      |   |              | 4,200  |   |   |   | — |   |
| Transaction costs Energuate                     |   |              | 1,903  |   |   |   | — |   |
| Derivative instruments                          |   |              | 1,831  |   |   |   | — |   |
| Selective consumption tax on heavy fuel oil (d) |   |              | 940    |   |   |   | — |   |
| Prepaid expenses                                |   |              | 6,039  |   |   |   | 9,489 |   |
| Other receivables                               |   |              | 11,233 |   |   |   | 8,254 |   |
|                                            |   |              | 49,773 |   |   |   | 45,260 |   |

| (a) | The balance corresponds mainly to the VAT incurred in the construction of CDA and Samay I (“Puerto Bravo”) projects. Both projects have the tax benefit of recovering the VAT incurred during the construction stage on a regular basis. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | As of December 31, 2016, it corresponds to the accounts receivables recorded in Samay I and Corinto in relation to its insurance claims for property damage and business interruption by $8 million and $750 thousand, respectively. As of December 31, 2015, it corresponds to the accounts receivables recorded in Amayo II and Cobee related to its insurance claims for Business Interruption and for property damage by $2 million and $2 million, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | As of December 31, 2016, it corresponds to the sale of the transmission line of a Corinto and Amayo I to Empresa Nacional de Transmision Electrica (“ENATREL”). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | During 2016, the Dominican Republic Government, enacted the Decree No. 275-16 which establishes a system of reimbursement of Selective Consumption Tax on fossil fuels and petroleum products to individual or legal entities, including generation companies. The Decree sets out a payment in advance for fuels purchased which will be reimbursed as they are consumed. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|            |   | As at December 31 |   |
|-----------------|--------|-------------------|--------|
|            |   | 2016              |   |   | 2015 |   |
|            |   | $ thousands       |   |
| Fuel (a)        |   |              | 42,105 |   |   |   | 5,786 |   |
| Spare parts (b) |   |              | 49,554 |   |   |   | 44,565 |   |
|            |   |              | 91,659 |   |   |   | 50,351 |   |

| (a) | The plants in El Salvador, Nicaragua, Guatemala, Jamaica and Dominican Republic consume heavy fuel, and the plants in Chile and Samay I in Peru consume diesel for the generation of electric energy. These plants must purchase fuel in the international market and import it into the respective countries. As of December 31.2016, $30 million corresponds to Samay I’s diesel inventory. According to its Concession agreement, Samay I must keep the equivalent of 15 days of fuel autonomy as cold reserve. The plants must take into consideration demand for the electric energy, available supply and transportation cost and timing when purchasing fuel. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Corresponds to spare parts held in storage to be used in maintenance work. |
|-----|----------------------------------------------------------------------------|

----

|  | A. | Condensed information regarding significant associated companies |
|--|----|------------------------------------------------------------------|

|  | 1. | Condensed financial information with respect to the statement of financial position |
|--|----|-------------------------------------------------------------------------------------|

|                                       |   | ZIM               |       |   | Qoros* |   |
|--------------------------------------------|--------|-------------------|------------|--------|--------|--------|
|                                       |   | As at December 31 |       |
|                                       |   | 2016              |       |   | 2015   |   |   | 2016 |   |   | 2015 |   |
|                                       |   | $ thousands       |       |
| Principal place of business                |   | International     |       |   | China  |   |
| Proportion of ownership interest           |   |              | 32%        |   |   |   | 32% |   |   |   | 50% |   |   |   | 50% |  |
|                                       |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current assets                             |   |              | 465,892    |   |   |   | 616,279 |   |   |   | 259,804 |   |   |   | 235,084 |   |
| Non-current assets                         |   |              | 1,237,740  |   |   |   | 1,296,035 |   |   |   | 1,273,862 |   |   |   | 1,430,156 |   |
| Current liabilities                        |   |              | (530,842   | )      |   |   | (610,933 | ) |   |   | (773,946 | ) |   |   | (888,354 | ) |
| Non-current liabilities                    |   |              | (1,273,447 | )      |   |   | (1,222,639 | ) |   |   | (695,484 | ) |   |   | (746,740 | ) |
| Non-controlling interests                  |   |              | (3,125     | )      |   |   | (3,976 | ) |   |   | — |   |   |   | — |   |
| Total net assets attributable to the Group |   |              | (103,782   | )      |   |   | 74,766 |   |   |   | 64,236 |   |   |   | 30,146 |   |
|                                       |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share of Group in net assets               |   |              | (33,210    | )      |   |   | 23,925 |   |   |   | 32,118 |   |   |   | 15,073 |   |
| Adjustments:                               |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Excess cost              |   |              | 114,953    |   |   |   | 177,360 |   |   |   | — |   |   |   | — |   |
|    Loans                    |   |              | —    |   |   |   | — |   |   |   | 55,798 |   |   |   | 109,393 |   |
| Financial guarantee                        |   |              | —    |   |   |   | — |   |   |   | 29,677 |   |   |   | 34,263 |   |
| Book value of investment                   |   |              | 81,743     |   |   |   | 201,285 |   |   |   | 117,593 |   |   |   | 158,729 |   |

|  | * | Qoros is a joint venture (See Note 10.C.b). The current assets include cash and cash equivalent of $67 million (2015: $40 million). The current and non-current liabilities excluding trade and other payables and provisions amount to $1.1 billion (2015: $1.2 billion). |
|--|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 2. | Condensed financial information with respect to results of operations |
|--|----|-----------------------------------------------------------------------|

|                                     |   | ZIM                                                          |      |   | Tower* |   |      | Qoros*** |   |   | Generandes** |   |
|------------------------------------------|--------|-------------------------------------------------------------------|-----------|--------|--------|--------|-----------|----------|--------|--------|--------------|--------|
|                                     |   | For the year ended December 31                                    |      |
|                                     |   | 2016                                                              |      |   | 2015   |   |      | 2014     |   |   | 2015         |   |   | 2014 |   |   | 2016 |   |   | 2015 |   |   | 2014 |   |   | 2014 |   |
|                                     |   | $ thousands          |      |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                 |   |                                                              | 2,539,296 |   |   |   | 2,991,135 |     |   |   | 1,667,107    |   |   |   | 461,778 |   |   |   | 828,008 |   |   |   | 377,456 |   |   |   | 232,114 |   |   |   | 138,260 |   |   |   | 193,000 |   |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) / income ****                     |   |                                                              | (168,290  | )      |   |   | 2,253     |     |   |   | (72,515      | )      |   |   | (737 | ) |   |   | 24,723 |   |   |   | (285,069 | ) |   |   | (392,427 | )  |   |   | (349,612 | )  |   |   | 29,628 |   |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive (loss) / income **** |   |                                                              | (12,351   | )      |   |   | (1,948    | )        |   |   | 2,399        |   |   |   | — |   |   |   | (8,287 | ) |   |   | 7 |   |   |   | (19 | ) |   |   | (25 | ) |   |   | — |   |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive (loss) / income      |   |                                                              | (180,641  | )      |   |   | 305       |     |   |   | (70,116      | )      |   |   | (737 | ) |   |   | 16,436 |   |   |   | (285,062 | ) |   |   | (392,446 | ) |   |   | (349,637 | )  |   |   | 29,628 |   |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s share of comprehensive     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (loss) / income                          |   |                                                              | (57,805   | )      |   |   | 98        |     |   |   | (22,437      | )      |   |   | (189 | ) |   |   | 4,696 |   |   |   | (142,531 | ) |   |   | (196,223 | )  |   |   | (174,818 | )  |   |   | 11,554 |   |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustments                              |   |                                                              | 9,856     |   |   |   | 9,418     |     |   |   | 9,665        |   |   |   | (609 | ) |   |   | 13,687 |   |   |   | (3 | ) |   |   | — |   |   |   | 12 |   |   |   | (12 | ) |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Kenon’s share of comprehensive     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) / Income presented in the books   |   |                                                              | (47,949   | )      |   |   | 9,516     |     |   |   | (12,772      | )      |   |   | (798 | ) |   |   | 18,383 |   |   |   | (142,534 | ) |   |   | (196,223 | ) |   |   | (174,806 | )  |   |   | 11,542 |   |
|                                     |   |                                                              |      |   |   |   |      |     |   |   |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| * | Distributed as dividend-in-kind in July 2015 (see Note 10.C.c). Results of operations for 2015 corresponds to the six months ended June 30, 2015. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Sold in 2014. |
|----|---------------|

| *** | Qoros is a joint venture (See Note 10.C.b). The depreciation and amortization, interest income, interest expense and income tax expenses recorded by Qoros during the year were $119 million, $2 million, $63 million and $37 thousand (2015: $75 million, $2 million, $2 million and $92 thousand; 2014: $32 million, $3 million, $35 million and $86 thousand) respectively. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **** | Excludes portion attributable to non-controlling interest. |
|------|------------------------------------------------------------|

----

|                                                |   | Associated Companies |   |
|-----------------------------------------------------|--------|----------------------|--------|
|                                                |   | As at December 31    |   |
|                                                |   | 2016                 |   |   | 2015 |   |   | 2014 |   |
|                                                |   | $ thousands          |   |
|                                                |   |                 |   |   |   |   |   |   |   |
| Book value of investments as at December 31    |   |                 | 8,897  |   |   |   | 9,008 |   |   |   |   |
|                                                |   |                 |   |   |   |   |   |   |   |   |   |
| Share of Group in income                            |   |                 | 939    |   |   |   | 123 |   |   |   | 8,334 |   |
| Share of Group in other comprehensive (loss)/income |   |                 | -      |   |   |   | - |   |   |   | (10,398 | ) |
|                                                |   |                 |   |   |   |   |   |   |   |   |   |   |
| Share of Group in total comprehensive (loss)/income |   |                 | 939    |   |   |   | 123 |   |   |   | (2,064 | ) |

|  | C. | Additional information |
|--|----|------------------------|

|  | a. | ZIM |
|--|----|-----|

|  | 1. | Upon completion of the debt arrangement in ZIM, on July 16, 2014, the Group declined to a rate of holdings of 32% of ZIM’s equity and as a result it ceased to control ZIM. Commencing from this date, IC presents its investment in ZIM as an associated company. ZIM’s results up to the completion date of the debt arrangement, together with the income due to loss of control and the loss due to waiving all ZIM’s debts, were presented separately in the consolidated profit and loss statements in the category “profit for the year from discontinued operations”. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | The container shipping industry is dynamic and volatile and has been marked in recent years by instability as a result of a prolonged global economic crisis, continued deterioration of market environment which is characterized by slower growth of demand and worsening overcapacity combined with increased uncertainty due to the realigning of global alliances. This situation combined with carriers' ambitions to increase and protect their market share led freight rates to fall sharply in most of the trades, mainly since the second half of 2015. The first half of 2016 continued to be very challenging. Container freight rates hit historical lows across major trades, as new vessel capacity was added, while market demand remained weak. During the second half of 2016, freight rates have increased in certain trades, following a filing for court receivership by one of the top ten companies in the industry. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (i) | ZIM approached some of its creditors and lessors of vessels and equipment, for the purpose of rescheduling payments. |
|--|-----|----------------------------------------------------------------------------------------------------------------------|

|  | a. | Deferral of payments in a total amount of approximately $116 million (the "Deferred Amounts"), during a period of up to 12 months starting on September 30, 2016. The repayment of the Deferred Amounts will begin as from January 1, 2018 on a straight line basis and will end on December 31, 2020 (the "Repayment Period"). In case any of the respective agreement expires before the end of the Repayment Period, the unpaid balance of Deferred Amounts will be paid in full upon expiration. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | The Deferred Amounts bear interest, at an annual rate of LIBOR + 2.8% paid quarterly in cash. |
|--|----|-----------------------------------------------------------------------------------------------|

|  | c. | ZIM granted security over its rights and interests derived from certain of its receivables, for securing the repayment of the Deferred Amounts. The balance of the secured Deferred Amounts as of December 31, 2016 amounted to $41 million. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | With respect to excess cash, as defined in the rescheduling agreement, a mechanism of mandatory prepayments of the abovementioned rescheduled amounts and their related accrued interest, will apply. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | ZIM obtained amendments to its financial covenants. Accordingly, below are the current financial covenants of ZIM: |
|--|------|--------------------------------------------------------------------------------------------------------------------|

|  | 1) | Fixed Charge Cover ratio - The required ratio will be assessed on March 31, 2018 onwards, and will gradually increase from 0.78:1 as required on March 31, 2018 to 0.99:1 as required on March 31, 2019 and remain at that level thereafter. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2) | Total Leverage ratio - The required ratio will be assessed on March 31, 2018 onwards, and will gradually decrease from 23.69:1 as required on March 31, 2018 to 6.64:1 as required on December 31, 2018 and remain at that level thereafter. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3) | Minimum Liquidity – This covenant was amended as from March 31, 2016 to include all cash and cash equivalents available to ZIM without any restrictions. In addition, during 2016 and through (and including) September 30, 2016, ZIM was required to stand a minimum liquidity of $150 million. At December 31, 2016 ZIM is in compliance with its financial covenants with liquidity amounting to $182 million (Minimum Liquidity required is $125 million). |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 3. | The recent trends in the shipping industry, in particular the uncertainty of global markets due to continued conflicts in Middle East, continued decline in trade volumes and freight rates, vessel capacity oversupply, rebalancing of the Chinese economy away from manufacturing and exports towards domestic consumption, and the Panama Canal expansion have an adverse effect on ZIM’s results. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | A. | The implied EV/EBITDA range based on the indicative range of fair values for Kenon’s 32% stake in ZIM and the actual EBITDA for the 12-month to March 31, 2016 and the 12-month to June 30, 2016; and, |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The implied EV/EBITDA range based on the indicative range of fair values for Kenon’s 32% stake in ZIM and the estimated sustainable EBITDA computed based on a 5% margin and actual revenue for the 12-month to March 31, 2016. The estimated maintainable margin was based on a 30% discount applied to analyst estimate of the industry margin. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | In 2015, ZIM recognized an impairment of the vessels held for sale in an amount of $7 million as impairment under other operating expenses. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | As part of the July 2014 group debt restructuring, ZIM undertook to scrap eight vessels during the period of 16 months from the effective date of the restructuring. In 2015, ZIM disposed two vessels, and obtained an extension through December 16, 2015, to dispose the last vessel. As of December 31, 2015 all of such vessels were disposed. Upon the effective date of the restructuring, those vessels were classified as held for sale in ZIM’s report and as a result, an impairment loss in an amount of $110 million was recorded under other operating expenses in ZIM’s report (as included in the Day 1 Effect). |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 6. | During 2015, ZIM sold all of its holdings in an associated company which resulted in a disposal gain of $32 million recognized in ZIM’s financial statements. Kenon's share of the disposal gain is $10 million and is recognized in share of net income and losses from associated companies. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7. | During 2016, ZIM sold a portion of its holdings in an associated company and ceased to have significant influence over such investee. ZIM recognized a disposal gain in an amount of $16 million, Kenon's share of the disposal gain is $5 million and is recognized in share of net income and losses from associated companies. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | Qoros Automotive Co. Ltd. (“Qoros”) |
|--|----|-------------------------------------------------|

|  | 1. | As at December 31, 2016, the Group holds, through a wholly-owned and controlled company, Quantum (2007) LLC (“Quantum”) the equity interest of Qoros in a 50/50 agreement with a Chinese vehicle manufacturer – Chery Automobiles Limited (“Chery”), which is engaged in manufacture of vehicles using advanced technology, and marketing and distribution of the vehicles worldwide under a quality brand name. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | As at December 31, 2016, Kenon’s investment in Qoros amounts to $117 million (December 31, 2015 – $159 million). |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | In January and February 2016, Kenon and Wuhu Chery each, through Quantum, a Kenon subsidiary, provided a RMB275 million ($42 million) convertible loan to Qoros to support its working capital requirements. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Qoros incurred a net loss of RMB 1.9 billion (approximately $284 million) and had net current liabilities of approximately RMB 3.57 billion (approximately $515 million) for the year ended December 31, 2016 (RMB 2.48 billion (approximately $372 million) and RMB 4.24 billion (approximately $610 million) as of December 31, 2015 respectively). |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | Ansonia Loans |
|--|----|---------------|

|  | a. | Overview |
|--|----|----------|

|  Date Granted   | RMB million            | Plus certain interest | Convertible into EquityDiscount Rate 1 | Loan Transfer Date fromQuantum to Qoros 2 |
|----------------------|------------------------|-----------------------|----------------------------------------|-------------------------------------------|
| Tranche 1 / Apr 2016 | 150                    | 6%                    | 10%                                    | May 20, 2016                              |
| Tranche 2 / Apr 2016 | 150                    | June 28, 2016         |
| Tranche 3 / Sep 2016 | 150                    | 25%                   | September 6, 2016                      |
| Total                | 450 ($72 million) |                  |

----

|  | b. | Repayment of the Ansonia loans |
|--|----|--------------------------------|

|  | i. | Ansonia loans to Quantum are non-recourse to Kenon, and limited recourse to Quantum. Quantum’s obligations to repay these loans when Quantum receives loan repayments from Qoros; or Quantum sells all or portion of its interest in Qoros. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | ii. | Qoros has agreed to secure and undertaken to enter into the pledge for the Quantum and Wuhu Chery loans with certain collateral. The pledge is subjected to approvals to be received. Qoros' pledge of this collateral will be released upon a conversion of the shareholder loans into equity (as described below) or upon repayment. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | iii. | Quantum agreed to assign its rights, title and interests in the collateral securing these loans to Ansonia. |
|--|------|-------------------------------------------------------------------------------------------------------------|

|  | iv. | Ansonia loans can be repaid by Quantum without penalty or premium prior to the conversion into Equity of Quantum. |
|--|-----|-------------------------------------------------------------------------------------------------------------------|

|  | c. | Conversion of the Ansonia loans into Equity (“Conversion”) |
|--|----|------------------------------------------------------------------------|

|  | 6. | Financial Guarantees Provisions in 2016 |
|--|----|-----------------------------------------|

|  | 7. | Financial Guarantees Release from 2016 |
|--|----|----------------------------------------|

----

|  | a. | Set forth below is an overview of the guarantees provided by Kenon in respect of Qoros' debt as of December 31, 2016: |
|--|----|-----------------------------------------------------------------------------------------------------------------------|

| Date Granted             | Qoros Credit Facility (EXIM Bank loan facility) | Kenon Maximum Guarantee Obligation prior to Guarantee Release described above | Kenon Maximum Guarantee Obligation after Guarantee Release |
|--------------------------|-------------------------------------------------|-------------------------------------------------------------------------------|------------------------------------------------------------|
|                     | RMB million                                     |
|                     |                                            | Plus certain interest and fees                                                |
| Spin-Off / November 2015 | 3,000                                           | 750                                                                           | 475($69 million)1,2                                        | - |
| May / November 2015      | 700                                             | 350 3                                                                         | 350($51 million)3                                          | 60 3 |
| Total4              |                                            | 1,100 ($160 million) 1,2                                            | 825($120 million)1,2                                  | 60($9 million)3 |

|  | 1.  | In the event that Chery’s liability under its guarantee exceeds RMB1.5 billion, Kenon has committed to negotiate with Chery in good faith to find a solution so that Kenon’s and Chery’s liabilities for the indebtedness of Qoros under this credit facility are equal in proportion. This is subject to the reduction of Kenon’s back-to-back guarantee obligations by one-third as described above. |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Following the reduction in back-to-back guarantee obligations of Kenon as described above, Kenon’s maximum guarantee obligations (subject to certain obligations to negotiate fees and interest.) in respect of Qoros’ RMB3 billion facility have been reduced to RMB500 million. Pursuant to the Ansonia Commitment described above, Ansonia has agreed to pay up to RMB25 million (approximately $4 million) to Kenon in certain circumstances in the event that Kenon is required to make payments on its back-to-back guarantees under the RMB3 billion facility; any payment by Ansonia would be made only after all obligations under Kenon’s back-to-back guarantees in excess of the amount of the Ansonia Commitment have been satisfied. Giving effect to the Ansonia Commitment, Kenon’s effective maximum guarantee obligations are RMB475 million. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3.  | In the event that Chery is obligated under its guarantee of the EXIM Bank loan facility to make payments that exceed Kenon’s obligations under the guarantee, Kenon and Chery have agreed to try to find an acceptable solution, but without any obligation on Kenon to be liable for more than the amounts set forth in the table above. |
|--|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | Table does not include pledges. Quantum has pledged a significant portion of its Qoros shares to EXIM Bank to secure Qoros’ obligations under the RMB1.2 billion EXIM Bank facility. Quantum has also pledged Qoros shares to Chery as described above. (For further information, See Note 10.C.b.8) |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 8. | Financial Guarantees Release from 2017 |
|--|----|----------------------------------------|

----

| Loans          | Timing                | Amount of Loans to Qoros | Amount of Guarantee Obligations Prior to Investment | Release of Kenon Guarantees to Chery | Remaining Guarantee Obligations Post-Investment | Pledge of Qoros Shares in relation to Investment |
|----------------|-----------------------|--------------------------|-----------------------------------------------------|--------------------------------------|-------------------------------------------------|--------------------------------------------------|
|           |                  | in RMB million           |
| First Tranche  | March 2017            | 388.5                    | 850 1                                               | 425 3                                | 425                                             | 5.17%                                            |
| Second Tranche | At Kenon's discretion | 388.5                    | 425                                                 | 425 3                                | —                                         | 5.17%                                            |
| Total          |                  | 777                      | —                                             | 850 3                                | —                                         | 10.3%2                                           |

|  | 9. | Background of Financial Guarantees |
|--|----|------------------------------------|

|  | a. | In July 2012, Chery provided a guarantee to the banks, in the amount of RMB1.5 billion ($242 million), in relation to an agreement with the banks to provide Qoros a loan, in the amount of RMB3 billion ($482 million). In November 2015, Kenon has provided back-to-back guarantees to Chery of RMB750 million (approximately $115 million) in respect of certain of Qoros’ indebtedness and has committed to negotiate with Chery in good faith to find a solution so that Kenon’s and Chery’s liabilities for the indebtedness of Qoros under Qoros’ RMB3 billion credit facility are equal in proportion; Kenon has similarly agreed to try to find an acceptable solution in respect of Kenon’s and Chery’s liabilities for the indebtedness of Qoros under Qoros’ 1.5 RMB billion facility, but without any obligation on Kenon to be liable for more than the amount set forth in its back-to-back guarantee to Chery. As a result, if Qoros is unable to meet its operating expenses or is unable to comply with the terms of certain of its debt agreements, Kenon may be required to make payments under its guarantees to Chery. In a back-to-back arrangement Kenon committed to Chery to pay half of every amount it will be required to pay with respect to the above-mentioned guarantee (“the 2012 Guarantee"). The fair value of the guarantee has been recorded in the financial statements. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | b. | On May 12, 2015, Qoros has signed a Consortium Loan Agreement with the Export-Import Bank of China, and China Construction Bank Co., LTD, Suzhou Branch, concerning the Project of Research and Development of Hybrid Model (“Loan Agreement”), for an amount of RMB700 million ($108 million) or in USD not exceeding the equivalent to RMB480 million ($78 million) (the “Facility”). |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | On June 15, 2015, this Facility was secured by Chery Automobile Co., Ltd (“Chery Guarantee Deed”) and pledged with Qoros’ 90 vehicle patents with an appraisal value of minimum RMB3.1 billion ($0.5 billion). The Loan Agreement’s term of 102 months bears a 5-years interest rate quoted by the People’s Bank of China in RMB at LIBOR+10%, or in USD at LIBOR+3.50% per annum. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | On May 15, 2015, Kenon and Chery each provided a RMB400 million ($65 million) loan to Qoros to support its ongoing development. RMB25 million ($5 million) of each loan can be converted into equity on conditions set out in the agreement. As a result, Kenon’s ownership percentage in Qoros will not increase upon Qoros’ full, or partial, conversion of Kenon’s RMB400 million ($65 million) shareholder loan into equity. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | e. | On July 31, 2014, in order to secure additional funding for Qoros of approximately RMB 1.2 billion ($200 million as of August 7, 2014) IC pledged a portion of its shares (including dividends derived therefrom) in Qoros, in proportion to its share in Qoros’s capital, in favor of the Chinese bank providing Qoros with such financing. Simultaneously, the subsidiary of Chery that holds Chery’s rights in Qoros also pledged a proportionate part of its rights in Qoros. Such financing agreement includes, inter alia, liabilities, provisions regarding covenants, events of immediate payment and/or early payment for violations and/or events specified in the agreement. The lien agreement includes, inter alia, provisions concerning the ratio of securities and the pledging of further securities in certain circumstances, including pledges of up to all of Quantum’s shares in Qoros (or cash), provisions regarding events that would entitle the Chinese Bank to exercise the lien, certain representations and covenants, and provisions regarding the registration and approval of the lien. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10. | Business Plans |
|--|-----|----------------|

|  | a. | In September 2014, Qoros’ board of directors reviewed a business development plan for the next ten years. Subsequently, Qoros’ board of directors approved a five-year business plan, which reflected lower forecasted sales volumes and assumed the minimal level of capital expenditure necessary for such sales volumes. As a result, Qoros management performed impairment tests in October 2015 and February 2016. In March 2017, Qoros’ board of directors approved a new business development plan for the next five years. As a result, Qoros management performed impairment tests in March 2017 on Qoros’ operating assets as of December 31, 2016 and intangible assets. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | c. | Tower |
|--|----|-------|

|  | 1. | In March 2015, Tower accelerated the conversion of $80 million of its outstanding Series F Bonds into ordinary shares of Tower. As a result of the issuance of shares, Kenon's interest in Tower was reduced from 29% to 23% of Tower’s equity and Kenon realized a dilution gain of $32 million. |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | On May 27, 2015, Kenon’s shareholders approved a capital reduction, contingent upon the approval of the High Court of the Republic of Singapore, to enable Kenon to distribute, on a pro rata basis, some, or all, of the 18,030,041 ordinary shares of Tower held by Kenon, as well as 1,669,795 ordinary shares of Tower underlying the 1,669,795 Series 9 Warrants of Tower held by Kenon, to holders of Kenon’s ordinary shares. On June 25, 2015, the High Court of the Republic of Singapore approved the reduction of Kenon’s issued share capital, enabling Kenon to declare a distribution of some, or all, of its interest in Tower by distribution in specie. On June 30, 2015, the investment in Tower was reclassified to Assets held for distribution. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | On July 7, 2015, Kenon’s board of directors declared a pro rata distribution (the “Distribution”) in specie of 18,030,041 ordinary shares of Tower (the “Tower Shares”) to Kenon’s shareholders of record as of the close of trading on July 20, 2015 (the “Record Date”). The Distribution occurred on July 23, 2015 (the “Distribution Date”) and is one of the first key steps in the implementation of Kenon’s strategy, which provided Kenon Shareholders with direct access to Tower, which Kenon believes is in the best interests of its shareholders. |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | The Tower Shares to be distributed in the Distribution represent all of the shares in Tower owned by Kenon, excluding the 1,669,795 shares in Tower underlying certain warrants held by Kenon. As of July 7, 2015, Kenon had 53,682,994 ordinary shares outstanding. Accordingly, each Kenon Shareholder as of the Record Date received approximately 0.335861 of a Tower Share for every Kenon Share held by such shareholder as of the Record Date. The fair value of the distribution in kind amounts to $255 million. As a result of this distribution, the Group recognized a gain from distribution of dividend in kind of $210 million. The gain arose from the difference between the fair value of the distribution and the carrying amount of the investment as required by IFRIC 17 Distributions of non-cash assets to owners. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | After the distribution, Kenon beneficially owned 1,669,795 Warrants representing approximately 2.0% of outstanding Ordinary Shares of Tower. On August 5, 2016, Kenon sold 1,699,795 Series 9 Warrants of Tower for proceeds of approximately $11.4 million. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | d. | Generandes Peru S.A |
|--|----|---------------------|

----

|  | D. | Details regarding dividends received from associated companies |
|--|----|----------------------------------------------------------------|

|                      |   | For the Year Ended December 31 |   |
|---------------------------|--------|--------------------------------|--------|
|                      |   | 2016                           |   |   | 2015 |   |   | 2014 |   |
|                      |   | $ thousands                    |   |
| From associated companies |   |                           | 743    |   |   |   | 4,487 |   |   |   | 32,227 |   |

|  | E. | Restrictions |
|--|----|--------------|

----

|  | A. | Investments |
|--|----|-------------|

|  | 1. | I.C. Power |
|--|----|------------|

|  | a. | Subsidiaries acquired in 2016 |
|--|----|-------------------------------|

|                          |   | $ thousands |    |
|-------------------------------|--------|-------------|---------|
| Cash consideration paid       |   |        | 242,536 |   |
| Deferred payment              |   |        | 23,750  |   |
| Total cash consideration paid |   |        | 266,286 |   |

|                                 |   | $ thousands |    |
|--------------------------------------|--------|-------------|---------|
| Cash consideration paid              |   |        | 266,286 |   |
| Cash and cash equivalents acquired   |   |        | (60,227 | ) |
| Net cash outflow used on acquisition |   |        | 206,059 |   |

|                                                 |   | Note   |   |   | $ thousands |   |
|------------------------------------------------------|--------|--------|--------|--------|-------------|--------|
| Property, plant and equipment                        |   |   | 13.A   |        |        |   | 392,495 |   |
| Intangibles                                          |   |   | 14.A   |   |        |   | 195,148 |   |
| Deferred income tax assets, net                      |   |   |   |   |        |   | 20,289 |   |
| Trade receivables, net                               |   |   |   |   |        |   | 100,508 |   |
| Cash and cash equivalents                            |   |   |   |   |        |   | 60,227 |   |
| Other assets                                         |   |   |   |   |        |   | 22,457 |   |
| Loan from bank and others                            |   |   |   |   |        |   | (288,290 | ) |
| Deferred income tax liabilities                      |   |   |   |   |        |   | (54,642 | ) |
| Trade payables                                       |   |   |   |   |        |   | (108,193 | ) |
| Guarantee deposits from customers                    |   |   |   |   |        |   | (51,072 | ) |
| Other liabilities                                    |   |   |   |   |        |   | (39,418 | ) |
| Fair value of total identifiable net assets acquired |   |   |   |   |        |   | 249,509 |   |

----

|  | iii. | Measurement of fair values |
|--|------|----------------------------|

|  | § | Fixed assets were valued considering the market value provided by an appraiser; |
|--|--------|---------------------------------------------------------------------------------|

|  | § | Intangibles consider the valuation of its Concessions; |
|--|--------|--------------------------------------------------------|

|  | § | Deferred taxes were valued based on the temporary differences between the accounting and tax basis of the business combination; and, |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|  | § | Non-controlling interests were measured as a proportional basis of the net assets identified on the acquisition date. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------|

|  | iv. | Goodwill |
|--|-----|----------|

|                                  |   | $ thousands |     |
|---------------------------------------|--------|-------------|----------|
| Total consideration transferred       |   |        | 266,286  |   |
| Non-controlling interest              |   |        | 20,325   |   |
| Fair value of identifiable net assets |   |        | (249,509 | ) |
| Goodwill*                             |   |        | 37,102   |   |

|  | v. | Recognition of revenues and profit or loss |
|--|----|--------------------------------------------|

----

|  | b. | Subsidiaries acquired in 2015 |
|--|----|-------------------------------|

|  | 1. | Advanced Integrated Energy Ltd. |
|--|----|---------------------------------|

|  | i. | A business combination in the amount of NIS 36 million ($9 million) as follows: (i) On August 10, 2015, after fulfilling the conditions precedent contemplated in the aforementioned agreement, I.C. Power completed the acquisition of AIE and paid NIS 1.8 million (approximately $460 thousand) to Hadera Paper Ltd. for the acquisition of the shares. (ii) I.C. Power through AIE paid NIS 34 million (approximately $9 million) for the repayment of the loan between Hadera Paper Ltd. and its former shareholder. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                   |   | $ thousands |    |
|----------------------------------------|--------|-------------|---------|
| Property, plant and equipment          |   |        | 8,981   |   |
| Intangible                             |   |        | 464     |   |
| Deferred income tax liabilities        |   |        | ( 123   | ) |
| Total identifiable net assets acquired |   |        | 9,322   |   |
| Total consideration                    |   |        | ( 9,441 | ) |
| Goodwill                               |   |        | 119     |   |

|  | ii. | AEI acquired of Hadera Paper’s energy center in the aggregate amount of NIS 24 million (approximately $6 million). The Hadera Paper’s energy center generates electricity with a 18MW steam turbine. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | During 2014, I.C. Power acquired the following companies: |
|--|----|-----------------------------------------------------------|

|  | 1. | AEI Nicaragua Holdings Ltd., AEI Jamaica Holdings Ltd. |
|--|----|--------------------------------------------------------|

|  | 2. | AEI Jamaica Holdings Ltd. |
|--|----|---------------------------|

----

|  | 3. | Surpetroil S.A.S (“Surpetroil”) |
|--|----|---------------------------------------------|

|  | 4. | AEI Guatemala Holdings Ltd. |
|--|----|-----------------------------|

|  | d. | Identifiable assets acquired and liabilities assumed |
|--|----|------------------------------------------------------|

|  |   1. | The following table summarizes the amounts of the fair values of the identifiable assets acquired and liabilities assumed at their respective acquisition dates: |
|--|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | AEI Nicaragua |     |   | AEI Jamaica |   |    | Surpetroil |   |   | AEI Guatemala |   |   | Total  |    |
|---------------------------------------|--------|---------------|----------|--------|-------------|--------|---------|------------|--------|--------|---------------|--------|--------|--------|---------|
|                                  |   | $ thousands   |     |
| Property, plant and equipment         |   |          | 157,211  |   |        |   | 39,585  |       |   |   | 15,173        |   |   |   | 60,896  |   |   |   | 272,865 |   |
| Intangible                            |   |          | 20,783   |   |        |   | 3,305   |       |   |   | 5,168         |   |   |   | 925     |   |   |   | 30,181 |   |
| Deferred income tax assets            |   |          | 2,375    |   |        |   | 179     |       |   |   | 201           |   |   |   | 76      |   |   |   | 2,831 |   |
| Trade receivables                     |   |          | 29,072   |   |        |   | 5,998   |       |   |   | 900           |   |   |   | 31,939  |   |   |   | 67,909 |   |
| Other assets                          |   |          | 40,716   |   |        |   | 24,325  |       |   |   | 1,835         |   |   |   | 38,777  |   |   |   | 105,653 |   |
| Short-term borrowings                 |   |          | —  |   |        |   | (1,722  | )          |   |   | (2,361        | )      |   |   | (17,500 | ) |   |   | (21,583 | ) |
| Long-term debt                        |   |          | (115,241 | )      |        |   | (10,199 | )          |   |   | (2,390        | )      |   |   | (23,021 | ) |   |   | (150,851 | ) |
| Deferred income tax liabilities       |   |          | (33,722  | )      |        |   | (1,102  | )          |   |   | (2,671        | )      |   |   | (7,550  | ) |   |   | (45,045 | ) |
| Other liabilities                     |   |          | (16,804  | )      |        |   | (9,532  | )          |   |   | (2,901        | )      |   |   | (29,181 | ) |   |   | (58,418 | ) |
| Non-controlling interest              |   |          | (30,618  | )      |        |   | — |       |   |   | (5,182        | )      |   |   | — |   |   |   | (35,800 | ) |
| Fair value of net assets acquired     |   |          | 53,772   |   |        |   | 50,837  |       |   |   | 7,772         |   |   |   | 55,361  |   |   |   | 167,742 |   |
| Fair value of pre-existing investment |   |          | —  |   |        |   | (6,044  | )          |   |   | —       |   |   |   | — |   |   |   | (6,044 | ) |
| Total consideration                   |   |          | (30,121  | )      |        |   | (20,677 | )          |   |   | (18,000       | )      |   |   | (34,918 | ) |   |   | (103,716 | ) |
| Gain on bargain purchase              |   |          | 23,651   |   |        |   | 24,116  |       |   |   | —       |   |   |   | 20,443  |   |   |   | 68,210 |   |
| Goodwill*                             |   |          | —  |   |        |   | — |       |   |   | 10,228        |   |   |   | — |   |   |   | 10,228 |   |
|                                  |   |          |     |   |        |   |    |       |   |   |          |   |   |   |    |   |   |   |   |   |
| Cash consideration                    |   |          | 30,121   |   |        |   | 20,677  |       |   |   | 12,000        |   |   |   | 34,918  |   |   |   | 97,716 |   |
| Consideration retained by I.C. Power  |   |          | —  |   |        |   | — |       |   |   | 6,000         |   |   |   | — |   |   |   | 6,000 |   |
| Total consideration transferred       |   |          | 30,121   |   |        |   | 20,677  |       |   |   | 12,000        |   |   |   | 34,918  |   |   |   | 97,716 |   |
| Cash and cash equivalent acquired     |   |          | (19,310  | )      |        |   | (5,371  | )          |   |   | (168          | )      |   |   | (2,881  | ) |   |   | (27,730 | ) |
| Net cash flow on acquisition          |   |          | 10,811   |   |        |   | 15,306  |       |   |   | 11,832        |   |   |   | 32,037  |   |   |   | 69,986 |   |

----

|  | 2. | Measurement of fair values |
|--|----|----------------------------|

|  | · | Fixed assets were valued considering the market value established by an appraiser; |
|--|--------|------------------------------------------------------------------------------------|

|  | · | Intangibles consider the valuation of its Power Purchase Agreements (PPAs); |
|--|--------|-----------------------------------------------------------------------------|

|  | · | Contingent liabilities were determined over the average probability established by third party legal processes; |
|--|--------|-----------------------------------------------------------------------------------------------------------------|

|  | · | Deferred tax was valued over the temporary differences between the accounting and tax basis of the business combination; and, |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------|

|  | · | Non-controlling interest was calculated over a proportional basis of the net assets identified on the acquisition date. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Gain of bargain purchase |
|--|----|--------------------------|

|  | · | Seller ́s need to complete transaction. |
|--|--------|---------------------------------------------|

|  | · | Lack of alternative buyers. |
|--|--------|-----------------------------|

|  | · | Regions low interest from international power players. |
|--|--------|--------------------------------------------------------|

|  | 4. | Recognition of Revenues and Profit or Loss |
|--|----|--------------------------------------------|

| Companies acquired          | Control Date       |   | Revenues    |    |   | Profit (loss)* |   |
|-----------------------------|--------------------|--------|-------------|---------|--------|----------------|--------|
|                        |          |   | $ thousands |    |
| AEI Nicaragua Holdings Ltd  | March 12, 2014     |   |        | 124,578 |   |           |   | 5,874 |   |
| Surpetroil S.A.S.           | March 28, 2014     |   |        | 9,263   |   |           |   | 1,759 |   |
| AEI Jamaica Holdings Ltd.   | May 30, 2014       |   |        | 40,752  |   |           |   | (2,242 | ) |
| AEI Guatemala Holdings Ltd. | September 17, 2014 |   |        | 33,302  |   |           |   | (1,028 | ) |
| Total                       |               |   |        | 207,895 |   |           |   | 4,363 |   |

----

|  | 2. |    I.C. Green |
|--|----|-------------------------|

|  | a. | On December 9, 2014, I.C. Green Energy (“ICG”) signed an agreement for the sale of all its holdings (about 69%) in the shares of Petrotec AG (“Petrotec”), a public company traded on the Frankfurt stock exchange, to the Renewable Energy Group (“REG”), a public company traded on the NASDAQ. As part of the agreement, REG paid ICG in exchange for Petrotec’s shares, the amount of $20.9 million, by means of an issuance of shares of REG, along with payment of an additional amount in cash, of $15.8 million, in respect of the balance of loans and accrued interest ICG granted to Petrotec. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | In 2014, due a lack of sufficient sources of financing for 2015, the Board of Directors of HelioFocus decided to reduce HelioFocus’ activities and to maintain only a minimum number of personnel until new investors are recruited. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | As of December 31, 2016, ICG held 90.85% of the shares of Primus Green Energy Inc. (“PGE”). In 2016, ICG granted PGE additional $7.5 million as convertible bridge financing agreement. On December 10, 2016, all of the convertible loans including interest have been consolidated to a convertible bridge financing agreement in the amount of $26 million with interest of 7% annually and will be repayable on June 30, 2017. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | PGE’s future is highly dependent on combination of factors, such as the timeliness and successful completion of additional financing; the success of its research and development activities; designing, constructing and operating successful production plants; and continued accessibility to funding from investment agreement with ICG and subject to price of available technologies and energy sources.  As a result of above uncertainties, ICG decided to write-off its goodwill in PGE in the amount of $6 million in 2015. |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | I.C. Power Pte Ltd (now known as I.C. Power Ltd) |
|--|----|--------------------------------------------------|

----

|  | B. | The following table summarizes the information relating to each of the Group’s subsidiaries in 2016 and 2015 and combined entities in 2014 that has material NCI: |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                       |   | As at and for the year ended December 31                                |     |
|--------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|----------|
|                                                                                       |   | 2016                                                                    |     |   | 2015 |   |   | 2014 |   |
|                                                                                       |   |  Samay I.S.A                                                       |     |   | Nicaragua Energy Holding * |   |   | Kallpa Generacion S.A. |   |   |  Cerro del Aguila S.A. |   |   |  Samay I.S.A |   |   | Nicaragua Energy Holding |   |   | Kallpa Generacion S.A. |   |   |  Cerro del Aguila S.A. |   |   |  Samay I.S.A |   |   | Nicaragua Energy Holding |   |   | Kallpa Generacion S.A. |   |   |  Cerro del Aguila S.A. |   |
|                                                                                       |   | $ thousands           |     |
| NCI percentage                                                                             |   |                                                                    | 25.10    | % |   |   | 35.42 | % |   |   | 25.10 | % |   |   | 25.10 | % |   |   | 25.10 | % |   |   | 35.42 | % |   |   | 25.10 | % |   |   | 25.10 | % |   |   | 25.10 | % |   |   | 35.42 | % |   |   | 25.10 | % |   |   | 25.10 | % |
| Current assets                                                                             |   |                                                                    | 75,485   |   |   |   | 41,630 |   |   |   | 108,246 |   |   |   | 53,843 |   |   |   | 47,766 |   |   |   | 43,390 |   |   |   | 92,120 |   |   |   | 23,841 |   |   |   | 138,153 |   |   |   | 52,850 |   |   |   | 83,954 |   |   |   | 128,242 |   |
| Non-current assets                                                                         |   |                                                                    | 380,947  |   |   |   | 144,313 |   |   |   | 611,928 |   |   |   | 949,440 |   |   |   | 344,052 |   |   |   | 172,917 |   |   |   | 638,325 |   |   |   | 847,015 |   |   |   | 102,668 |   |   |   | 172,240 |   |   |   | 645,927 |   |   |   | 662,055 |   |
| Current liabilities                                                                        |   |                                                                    | (73,846  | ) |   |   | (26,053 | ) |   |   | (55,323 | ) |   |   | (85,935 | ) |   |   | (36,075 | ) |   |   | (22,044 | ) |   |   | (188,291 | ) |   |   | (25,909 | ) |   |   | (18,713 | ) |   |   | (23,376 | ) |   |   | (153,302 | ) |   |   | (25,138 | ) |
| Non-current liabilities                                                                    |   |                                                                    | (311,030 | ) |   |   | (100,834 | ) |   |   | (511,277 | ) |   |   | (618,219 | ) |   |   | (289,560 | ) |   |   | (121,142 | ) |   |   | (356,900 | ) |   |   | (556,277 | ) |   |   | (144,679 | ) |   |   | (131,327 | ) |   |   | (405,360 | ) |   |   | (460,081 | ) |
| Net assets                                                                                 |   |                                                                    | 71,556   |   |   |   | 59,056 |   |   |   | 153,574 |   |   |   | 299,129 |   |   |   | 66,183 |   |   |   | 73,121 |   |   |   | 185,254 |   |   |   | 288,670 |   |   |   | 77,429 |   |   |   | 70,387 |   |   |   | 171,219 |   |   |   | 305,078 |   |
| Carrying amount of NCI                                                                     |   |                                                                    | 17,961   |   |   |   | 20,918 |   |   |   | 38,547 |   |   |   | 75,081 |   |   |   | 16,612 |   |   |   | 25,899 |   |   |   | 46,499 |   |   |   | 72,456 |   |   |   | 19,435 |   |   |   | 24,931 |   |   |   | 42,976 |   |   |   | 76,575 |   |
|                                                                                       |   |                                                                    |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                   |   |                                                                    | 40,000   |   |   |   | 90,017 |   |   |   | 438,475 |   |   |   | 49,646 |   |   |   | — |   |   |   | 111,428 |   |   |   | 447,679 |   |   |   | — |   |   |   | — |   |   |   | 124,578 |   |   |   | 436,673 |   |   |   | — |   |
| Profit/(loss)                                                                              |   |                                                                    | 548      |   |   |   | 7,511 |   |   |   | 35,820 |   |   |   | 9 |   |   |   | (4,049 | ) |   |   | 14,469 |   |   |   | 44,088 |   |   |   | (8,579 | ) |   |   | (311 | ) |   |   | 4,472 |   |   |   | 53,090 |   |   |   | 6,964 |   |
| Other comprehensive income/(loss)                                                          |   |                                                                    | 4,825    |   |   |   | — |   |   |   | — |   |   |   | 10,449 |   |   |   | (6,057 | ) |   |   | — |   |   |   | (53 | ) |   |   | (1,079 | ) |   |   | (245 | ) |   |   | — |   |   |   | 1,150 |   |   |   | (6,938 | ) |
| Profit attributable to NCI                                                                 |   |                                                                    | 138      |   |   |   | 2,660 |   |   |   | 8,991 |   |   |   | 2 |   |   |   | (1,016 | ) |   |   | 5,125 |   |   |   | 11,066 |   |   |   | (2,153 | ) |   |   | (78 | ) |   |   | 1,584 |   |   |   | 13,326 |   |   |   | 1,748 |   |
| OCI attributable to NCI                                                                    |   |                                                                    | 1,211    |   |   |   | — |   |   |   | — |   |   |   | 2,623 |   |   |   | (1,520 | ) |   |   | — |   |   |   | (13 | ) |   |   | (271 | ) |   |   | (62 | ) |   |   | — |   |   |   | 289 |   |   |   | (1,742 | ) |
| Cash flows from operating activities                                                       |   |                                                                    | (1,276   | ) |   |   | 17,737 |   |   |   | 114,838 |   |   |   | 25,629 |   |   |   | — |   |   |   | 42,480 |   |   |   | 120,438 |   |   |   | — |   |   |   | — |   |   |   | 16,605 |   |   |   | 116,915 |   |   |   | — |   |
| Cash flows from investing activities                                                       |   |                                                                    | (60,468  | ) |   |   | (931 | ) |   |   | (16,082 | ) |   |   | (69,372 | ) |   |   | (236,207 | ) |   |   | (5,088 | ) |   |   | (13,589 | ) |   |   | (180,771 | ) |   |   | (88,644 | ) |   |   | 19,522 |   |   |   | (26,259 | ) |   |   | (247,724 | ) |
| Cash flows from financing activities excluding dividends paid to non-controlling interests |   |                                                                    | —  |   |   |   | (4,004 | ) |   |   | (16,943 | ) |   |   | — |   |   |   | 138,000 |   |   |   | (26,139 | ) |   |   | (91,084 | ) |   |   | 95,000 |   |   |   | 195,135 |   |   |   | (20,445 | ) |   |   | (78,982 | ) |   |   | 296,868 |   |
| Dividends paid to non-controlling interests                                                |   |                                                                    | 47,088   |   |   |   | (26,440 | ) |   |   | (88,911 | ) |   |   | 62,823 |   |   |   | — |   |   |   | (4,401 | ) |   |   | (7,530 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Effect of changes in the exchange rate on cash and cash equivalents                        |   |                                                                    | 373      |   |   |   | (348 | ) |   |   | 198 |   |   |   | 369 |   |   |   | (3,266 | ) |   |   | (489 | ) |   |   | (5,334 | ) |   |   | (2,929 | ) |   |   | (265 | ) |   |   | 411 |   |   |   | (824 | ) |   |   | — |   |
| Net increase/(decrease) in cash equivalents                                                |   |                                                                    | (14,283  | ) |   |   | (13,986 | ) |   |   | (6,900 | ) |   |   | 19,449 |   |   |   | (101,473 | ) |   |   | 6,363 |   |   |   | 2,901 |   |   |   | (88,700 | ) |   |   | 106,226 |   |   |   | 16,093 |   |   |   | 10,850 |   |   |   | 49,144 |   |

----

|  | C. | Restrictions |
|--|----|--------------|

|                                                 |   | As at December 31 |    |
|------------------------------------------------------|--------|-------------------|---------|
|                                                 |   | 2016              |    |   | 2015 |   |
|                                                 |   | $ thousands       |    |
| Deposits in banks and others – restricted cash |   |              | 16,690  |   |   |   | 16,521 |   |
| Long-term trade receivable                           |   |              | 10,120  |   |   |   | — |   |
| Financial derivatives not used for hedging           |   |              | 1,342   |   |   |   | 2,863 |   |
| Tower-series 9 options                               |   |              | — |   |   |   | 12,175 |   |
| Income tax receivables and tax claims (1)            |   |              | 99,892  |   |   |   | 19,669 |   |
| Other receivables (2)                                |   |              | 48,731  |   |   |   | 37,247 |   |
|                                                 |   |              | 176,775 |   |   |   | 88,475 |   |

|  | (1) | As at December 31, 2016 and 2015, the income tax receivable and tax claims – non-current distribution is as follows: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------|

|                                        |   | As at December 31 |   |
|---------------------------------------------|--------|-------------------|--------|
|                                        |   | 2016              |   |   | 2015 |   |
|                                        |   | $ thousands       |   |
| Energuate tax claim (See Note 20.B.f)  |   |              | 80,192 |   |   |   | — |   |
| Kallpa tax claim (See Note 20.B.d)     |   |              | 9,709  |   |   |   | 9,550 |   |
| Income tax credit from Nicaraguan companies |   |              | 5,694  |   |   |   | 5,815 |   |
| Income tax credit from PQP             |   |              | 3,996  |   |   |   | 4,304 |   |
| Other                                  |   |              | 301    |   |   |   | — |   |
|                                        |   |              |   |   |   |   |   |   |
|                                        |   |              | 99,892 |   |   |   | 19,669 |   |

|  | (2) | As of December 31, 2016 and 2015, other receivables correspond mainly to the VAT incurred in the construction of Cerro del Aguila and Samay I (“Puerto Bravo”) power plants and non-current prepaid expenses in OPC. In 2016, both power plants have the tax benefit of recovering the VAT incurred during the construction stage on a regular basis. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | A. | Composition |
|--|----|-------------|

|                                                           |   | As at December 31, 2016      |      |
|----------------------------------------------------------------|--------|------------------------------|-----------|
|                                                           |   | Balance at beginning of year |      |   |   Additions |   |   |   Disposals |   |   | Differences in translation reserves |   |   | Acquisition as part of business combination |   |   | Transfers and Reclassifications |   |   | Balance at end of year |   |
|                                                           |   | $ thousands                  |      |
| Cost                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Land, roads, buildings and leasehold  improvements        |   |                         | 288,538   |   |   |   | 7,759 |   |   |   | (1,244 | ) |   |   | 629 |   |   |   | 2,441 |   |   |   | 743,600 |   |   |   | 1,041,723 |   |
| Installations, machinery and equipment                         |   |                         | 1,840,754 |   |   |   | 46,652 |   |   |   | (35,616 | ) |   |   | 7,350 |   |   |   | — |   |   |   | 586,439 |   |   |   | 2,445,579 |   |
| Dams                                                           |   |                         | 138,310   |   |   |   | 159 |   |   |   | (965 | ) |   |   | — |   |   |   | — |   |   |   | 26,965 |   |   |   | 164,469 |   |
| Office furniture and  equipment and motor vehicles        |   |                         | 52,124    |   |   |   | 25,866 |   |   |   | (8,958 | ) |   |   | 12,129 |   |   |   | 375,063 |   |   |   | (872 | ) |   |   | 455,352 |   |
|                                                           |   |                         | 2,319,726 |   |   |   | 80,436 |   |   |   | (46,783 | ) |   |   | 20,108 |   |   |   | 377,504 |   |   |   | 1,356,132 |   |   |   | 4,107,123 |   |
| Plants under construction                                      |   |                         | 1,260,375 |   |   |   | 217,278 |   |   |   | (167 | ) |   |   | 385 |   |   |   | 7,839 |   |   |   | (1,354,532 | ) |   |   | 131,178 |   |
| Spare parts for installations                                  |   |                         | 44,299    |   |   |   | 20,139 |   |   |   | (477 | ) |   |   | 281 |   |   |   | 7,152 |   |   |   | (2,540 | ) |   |   | 68,854 |   |
|                                                           |   |                         | 3,624,400 |   |   |   | 317,853 |   |   |   | (47,427 | ) |   |   | 20,774 |   |   |   | 392,495 |   |   |   | (940 | ) |   |   | 4,307,155 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation                                       |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Land, roads, buildings and leasehold  improvements        |   |                         | 71,953    |   |   |   | 13,169 |   |   |   | (1,434 | ) |   |   | 48 |   |   |   | — |   |   |   | 1 |   |   |   | 83,737 |   |
| Installations, machinery and equipment                         |   |                         | 530,324   |   |   |   | 123,275 |   |   |   | (16,512 | ) |   |   | 970 |   |   |   | — |   |   |   | (263 | ) |   |   | 637,794 |   |
| Dams                                                           |   |                         | 46,764    |   |   |   | 1,742 |   |   |   | (121 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 48,385 |   |
| Office furniture and  equipment and motor vehicles        |   |                         | 21,538    |   |   |   | 20,591 |   |   |   | (2,665 | ) |   |   | 212 |   |   |   | — |   |   |   | 263 |   |   |   | 39,939 |   |
|                                                           |   |                         | 670,579   |   |   |   | 158,777 |   |   |   | (20,732 | ) |   |   | 1,230 |   |   |   | — |   |   |   | 1 |   |   |   | 809,855 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at December 31, 2016                                |   |                         | 2,953,821 |   |   |   | 159,076 |   |   |   | (26,695 | ) |   |   | 19,544 |   |   |   | 392,495 |   |   |   | (941 | ) |   |   | 3,497,300 |   |
|                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepayments on account of property, plant & equipment |   |                         | 6,057     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | — |   |
|                                                           |   |                         | 2,959,878 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,497,300 |   |

----

|                                                                           |   | As at December 31, 2015      |      |
|--------------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                           |   | Balance at beginning of year |      |   |  Additions |   |   |  Disposals |   |   | Differences in translation reserves |   |   | Acquisition as part of business combination |   |   | Transfers and Reclassifications |   |   | Balance at end of year |   |
|                                                                           |   | $ thousands                  |      |
| Cost                                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Roads, buildings and leasehold  improvements                              |   |                         | 280,618   |   |   |   | 4,792 |   |   |   | (144 | ) |   |   | (503 | ) |   |   | — |   |   |   | 3,775 |   |   |   | 288,538 |   |
| Installations, machinery and equipment                                         |   |                         | 1,779,476 |   |   |   | 35,148 |   |   |   | (5,775 | ) |   |   | (4,954 | ) |   |   | — |   |   |   | 36,859 |   |   |   | 1,840,754 |   |
| Dams                                                                           |   |                         | 138,260   |   |   |   | — |   |   |   | (929 | ) |   |   | — |   |   |   | — |   |   |   | 979 |   |   |   | 138,310 |   |
| Office furniture and  equipment, motor vehicles and other  equipment |   |                         | 43,381    |   |   |   | 9,140 |   |   |   | (1,866 | ) |   |   | (508 | ) |   |   | — |   |   |   | 1,977 |   |   |   | 52,124 |   |
|                                                                           |   |                         | 2,241,735 |   |   |   | 49,080 |   |   |   | (8,714 | ) |   |   | (5,965 | ) |   |   | — |   |   |   | 43,590 |   |   |   | 2,319,726 |   |
| Plants under construction                                                      |   |                         | 789,681   |   |   |   | 477,231 |   |   |   | (176 | ) |   |   | (393 | ) |   |   | 8,981 |   |   |   | (14,949 | ) |   |   | 1,260,375 |   |
| Spare parts for installations                                                  |   |                         | 27,084    |   |   |   | 48,078 |   |   |   | (116 | ) |   |   | (40 | ) |   |   | — |   |   |   | (30,707 | ) |   |   | 44,299 |   |
|                                                                           |   |                         | 3,058,500 |   |   |   | 574,389 |   |   |   | (9,006 | ) |   |   | (6,398 | ) |   |   | 8,981 |   |   |   | (2,066 | ) |   |   | 3,624,400 |   |
|                                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated depreciation                                                       |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Roads, buildings and leasehold  improvements                              |   |                         | 64,473    |   |   |   | 6,744 |   |   |   | (34 | ) |   |   | (56 | ) |   |   | — |   |   |   | 826 |   |   |   | 71,953 |   |
| Installations, machinery and equipment                                         |   |                         | 429,499   |   |   |   | 102,214 |   |   |   | (2,077 | ) |   |   | (677 | ) |   |   | — |   |   |   | 1,365 |   |   |   | 530,324 |   |
| Dams                                                                           |   |                         | 45,489    |   |   |   | 1,499 |   |   |   | (224 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | 46,764 |   |
| Office furniture and  equipment, motor vehicles and other  equipment |   |                         | 20,829    |   |   |   | 3,499 |   |   |   | (1,661 | ) |   |   | (95 | ) |   |   | — |   |   |   | (1,034 | ) |   |   | 21,538 |   |
|                                                                           |   |                         | 560,290   |   |   |   | 113,956 |   |   |   | (3,996 | ) |   |   | (828 | ) |   |   | — |   |   |   | 1,157 |   |   |   | 670,579 |   |
|                                                                           |   |                         | 2,498,210 |   |   |   | 460,433 |   |   |   | (5,010 | ) |   |   | (5,570 | ) |   |   | 8,981 |   |   |   | (3,223 | ) |   |   | 2,953,821 |   |
|                                                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepayments on account of property, plant & equipment                 |   |                         | 4,577     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,057 |   |
|                                                                           |   |                         | 2,502,787 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,959,878 |   |

|  | B. | Net carrying values |
|--|----|---------------------|

|                                                               |   | As at December 31 |      |
|--------------------------------------------------------------------|--------|-------------------|-----------|
|                                                               |   | 2016              |      |   | 2015 |   |
|                                                               |   | $ thousands       |      |
| Roads, buildings and leasehold improvements                        |   |              | 957,986   |   |   |   | 216,585 |   |
| Installations, machinery and equipment                             |   |              | 1,807,785 |   |   |   | 1,310,430 |   |
| Dams                                                               |   |              | 116,084   |   |   |   | 91,546 |   |
| Office furniture and equipment, motor vehicles and other equipment |   |              | 415,413   |   |   |   | 30,586 |   |
| Plants under construction                                          |   |              | 131,178   |   |   |   | 1,260,375 |   |
| Spare parts for installations                                      |   |              | 68,854    |   |   |   | 44,299 |   |
|                                                               |   |              | 3,497,300 |   |   |   | 2,953,821 |   |

| (1) | During the period ended December 31, 2016, the Group acquired assets with a cost of $319 million, mainly for the construction of the Cerro del Aguila and Samay facilities and acquired assets for an amount of $392 million in relation to Estrella Corporation BA business combination (See Note 11.A.1.a). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | During the period ended December 31, 2015, the Group acquired assets with a cost of $576 million and $9 million in relation to AIE business combinations (See Note 11.A.1.b). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (3) | In April 2016, Kanan’s 92 MW thermal generation project reached their commercial operation (“COD”). |
|--|-----|-----------------------------------------------------------------------------------------------------------------------|

|  | (4) | In May 2016, the four operating units of Samay I were declared operational.  In July 2016, the plant demonstrated above normal operational indicators. Personnel from Samay, Posco (“EPC Contractor”) and General Electric (“GE”) inspected the units. Those inspections revealed structural damage to three of the four plant units, as compressor and generators shafts were damaged. All four units were declared unavailable to the system. Additionally, Government entities (Ministry of Energy and Mines and “OSINERGMIN”) were informed of the force majeure event as well as the Lenders and the Insurance counterparties were informed of the occurrences. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (5) | On August 3, 2016, two out of the three units of CDA were declared fully operational. On August 25, 2016, the third generating unit of CDA was declared fully operational, reaching the COD of the power plant. With the completion of this unit, CDA is now capable of generating 545MW as of December 31, 2016. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | C. | When there is any indication of impairment, the Group’s entities perform impairment tests for their long lived assets using fair values less cost to sell based on independent appraisals or value in use estimations, with similar assumptions as those described (Note 14.D). |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | E. | In I.C. Power, property, plant and equipment includes assets acquired through financing leases. As at December 31, 2016 and 2015, the cost and corresponding accumulated depreciation of such assets are as follows: |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | As of December 31, 2016 |    |   | As of December 31, 2015  |   |
|---------------------------------------------------|--------|-------------------------|---------|--------|--------------------------|--------|
|                                              |   |  Cost              |    |   | Accumulated depreciation |   |   |  Net cost |   |   |  Cost |   |   | Accumulated Depreciation |   |   |  Net cost |   |
|                                              |   | $ thousands             |    |
| Land, roads, buildings and leasehold improvements |   |                    | 42,288  |   |                     |   | (6,602 | ) |   |   | 35,686 |   |   |   | 42,281 |   |   |   | (5,545 | ) |   |   | 36,736 |   |
| Installations, machinery and equipment            |   |                    | 275,852 |   |                     |   | (117,368 | ) |   |   | 158,484 |   |   |   | 275,674 |   |   |   | (104,401 | ) |   |   | 171,273 |   |
| Motor vehicles                                    |   |                    | 410     |   |                     |   | (46 | ) |   |   | 364 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                              |   |                    | 318,550 |   |                     |   | (124,016 | ) |   |   | 194,534 |   |   |   | 317,955 |   |   |   | (109,946 | ) |   |   | 208,009 |   |

|  | F. | The composition of the depreciation expense is as follows: |
|--|----|------------------------------------------------------------|

|                                  |   | As at December 31 |    |
|---------------------------------------|--------|-------------------|---------|
|                                  |   | 2016              |    |   | 2015 |   |
|                                  |   | $ thousands       |    |
| Depreciation charged to results       |   |              | 159,379 |   |   |   | 114,855 |   |
| Depreciation charged to fixed assets* |   |              | (602    | ) |   |   | (899 | ) |
|                                  |   |              | 158,777 |   |   |   | 113,956 |   |

|                                                                                |   | As at December 31 |    |
|-------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                |   | 2016              |    |   | 2015 |   |
|                                                                                |   | $ thousands       |    |
| Depreciation charged to cost of sales                                               |   |              | 154,071 |   |   |   | 105,725 |   |
| Depreciation charged to general, selling and administrative expenses                |   |              | 5,308   |   |   |   | 9,130 |   |
| Depreciation charged to results                                                     |   |              | 159,379 |   |   |   | 114,855 |   |
| Amortization of intangibles charged to cost of sales                                |   |              | 5,624   |   |   |   | 5,192 |   |
| Amortization of intangibles charged to general, selling and administrative expenses |   |              | 7,378   |   |   |   | — |   |
| Depreciation and amortization                                                       |   |              | 172,381 |   |   |   | 120,047 |   |

|  | G. | The Group has fully depreciated assets that are still in operation. As at December 31, 2016, the original cost of such assets was $134 million ($88 million as at December 31, 2015). |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | A. | Composition: |
|--|----|--------------|

|                                          |   | Goodwill    |    |   | Concessions licenses* |   |    | Customer relationships** |   |   | Software |   |   | Others*** |    |   | Total  |   |
|-----------------------------------------------|--------|-------------|---------|--------|-----------------------|--------|---------|--------------------------|--------|--------|----------|--------|--------|-----------|---------|--------|--------|--------|
|                                          |   | $ thousands |    |
| Cost                                          |   |        |    |   |                  |   |    |                     |   |   |     |   |   |      |    |   |   |   |
| Balance as at January 1, 2016                 |   |        | 79,581  |   |                  |   | — |                     |   |   | 41,074   |   |   |      | 1,776   |   |   |   | 68,806 |   |   |   | 191,237 |   |
| Acquisitions as part of business combinations |   |        | 37,102  |   |                  |   | 189,351 |                     |   |   | —  |   |   |      | — |   |   |   | 5,796 |   |   |   | 232,249 |   |
| Acquisitions – self development         |   |        | — |   |                  |   | — |                     |   |   | —  |   |   |      | 138     |   |   |   | 9,331 |   |   |   | 9,469 |   |
| Disposals                                     |   |        | — |   |                  |   | — |                     |   |   | —  |   |   |      | (153    | )      |   |   | — |   |   |   | (153 | ) |
| Reclassification                              |   |        | — |   |                  |   | — |                     |   |   | —  |   |   |      | — |   |   |   | (161 | ) |   |   | (161 | ) |
| Translation differences                       |   |        | 867     |   |                  |   | — |                     |   |   | —  |   |   |      | 10      |   |   |   | 125 |   |   |   | 1,002 |   |
| Balance as at December 31, 2016          |   |        | 117,550 |   |                  |   | 189,351 |                     |   |   | 41,074   |   |   |      | 1,771   |   |   |   | 83,897 |   |   |   | 433,643 |   |
|                                          |   |        |    |   |                  |   |    |                     |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Amortization and impairment                   |   |        |    |   |                  |   |    |                     |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Balance as at January 1, 2016                 |   |        | 21,455  |   |                  |   | — |                     |   |   | 16,888   |   |   |      | 937     |   |   |   | 4,713 |   |   |   | 43,993 |   |
| Amortization for the year                     |   |        | — |   |                  |   | 5,434   |                     |   |   | 4,054    |   |   |      | 227     |   |   |   | 3,287 |   |   |   | 13,002 |   |
| Disposals                                     |   |        | — |   |                  |   | — |                     |   |   | —  |   |   |      | (153    | )      |   |   | — |   |   |   | (153 | ) |
| Translation differences                       |   |        | — |   |                  |   | — |                     |   |   | —  |   |   |      | 4       |   |   |   | 19 |   |   |   | 23 |   |
| Balance as at December 31, 2016          |   |        | 21,455  |   |                  |   | 5,434   |                     |   |   | 20,942   |   |   |      | 1,015   |   |   |   | 8,019 |   |   |   | 56,865 |   |
|                                          |   |        |    |   |                  |   |    |                     |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |
| Carrying value                                |   |        |    |   |                  |   |    |                     |   |   |     |   |   |      |    |   |   |   |   |   |   |   |   |   |
| As at January 1, 2016                         |   |        | 58,126  |   |                  |   | — |                     |   |   | 24,186   |   |   |      | 839     |   |   |   | 64,093 |   |   |   | 147,244 |   |
| As at December 31, 2016                  |   |        | 96,095  |   |                  |   | 183,917 |                     |   |   | 20,132   |   |   |      | 756     |   |   |   | 75,878 |   |   |   | 376,778 |   |

| * | It corresponds to the fair value of DEORSA’s and DEOCSA’s concessions, which were granted by the Ministry of Energy and Mines of Guatemala - MEM in 1998 to DEORSA and DEOCSA to operate power distribution business in defined geographic areas for a term of 50 years. The remaining useful lives of DEORSA and DEOCSA’s concessions to operate in their respective defined geographic areas are each 33 years. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Comprise mainly identified intangible assets as a result of the business combination such as the acquisition of “customer relationships” and others in the purchase of its subsidiaries and associates. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | Includes development cost which corresponds to expenditures incurred in the design and evaluation of future power plant facilities in the countries in which the Company currently operates. These projects have different level of advance such as: temporal concessions, environmental impact studies in process and others. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | A. | Composition (Cont’d): |
|--|----|-----------------------------|

|                                          |   | Goodwill    |    |   | Customer relationships* |   |    | Software |   |   | Others ** |   |   | Total  |    |
|-----------------------------------------------|--------|-------------|---------|--------|-------------------------|--------|---------|----------|--------|--------|-----------|--------|--------|--------|---------|
|                                          |   | $ thousands |    |
| Cost                                          |   |        |    |   |                    |   |    |     |   |   |      |   |   |   |    |
| Balance as at January 1, 2015                 |   |        | 81,484  |   |                    |   | 41,074  |     |   |   | 1,522     |   |   |   | 53,459  |   |   |   | 177,539 |   |
| Acquisitions as part of business combinations |   |        | 119     |   |                    |   | — |     |   |   | —   |   |   |   | 464     |   |   |   | 583 |   |
| Acquisitions – self development         |   |        | — |   |                    |   | — |     |   |   | 194       |   |   |   | 15,070  |   |   |   | 15,264 |   |
| Disposals                                     |   |        | — |   |                    |   | — |     |   |   | (8        | )      |   |   | — |   |   |   | (8 | ) |
| Reclassification                              |   |        | — |   |                    |   | — |     |   |   | 71        |   |   |   | (177    | ) |   |   | (106 | ) |
| Translation differences                       |   |        | (2,022  | )      |                    |   | — |     |   |   | (3        | )      |   |   | (10     | ) |   |   | (2,035 | ) |
| Balance as at December 31, 2015          |   |        | 79,581  |   |                    |   | 41,074  |     |   |   | 1,776     |   |   |   | 68,806  |   |   |   | 191,237 |   |
|                                          |   |        |    |   |                    |   |    |     |   |   |      |   |   |   |    |   |   |   |   |   |
| Amortization and impairment                   |   |        |    |   |                    |   |    |     |   |   |      |   |   |   |    |   |   |   |   |   |
| Balance as at January 1, 2015                 |   |        | 15,537  |   |                    |   | 12,591  |     |   |   | 709       |   |   |   | 4,031   |   |   |   | 32,868 |   |
| Amortization for the year                     |   |        | — |   |                    |   | 4,297   |     |   |   | 214       |   |   |   | 681     |   |   |   | 5,192 |   |
| Acquisitions – business combination     |   |        | — |   |                    |   | — |     |   |   | —   |   |   |   | — |   |   |   | — |   |
| Disposals                                     |   |        | — |   |                    |   | — |     |   |   | (8        | )      |   |   | — |   |   |   | (8 | ) |
| Reclassification                              |   |        | — |   |                    |   | — |     |   |   | 22        |   |   |   | — |   |   |   | 22 |   |
| Impairment                                    |   |        | 5,918   |   |                    |   | — |     |   |   | —   |   |   |   | — |   |   |   | 5,918 |   |
| Translation differences                       |   |        | — |   |                    |   | — |     |   |   | —   |   |   |   | 1       |   |   |   | 1 |   |
| Balance as at December 31, 2015          |   |        | 21,455  |   |                    |   | 16,888  |     |   |   | 937       |   |   |   | 4,713   |   |   |   | 43,993 |   |
|                                          |   |        |    |   |                    |   |    |     |   |   |      |   |   |   |    |   |   |   |   |   |
| Carrying value                                |   |        |    |   |                    |   |    |     |   |   |      |   |   |   |    |   |   |   |   |   |
| As at January 1, 2015                         |   |        | 65,947  |   |                    |   | 28,483  |     |   |   | 813       |   |   |   | 49,428  |   |   |   | 144,671 |   |
| As at December 31, 2015                  |   |        | 58,126  |   |                    |   | 24,186  |     |   |   | 839       |   |   |   | 64,093  |   |   |   | 147,244 |   |

| * | Comprise mainly identified intangible assets as a result of the business combination such as the acquisition of “customer relationships” and others in the purchase of its subsidiaries and associates. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Includes development cost which corresponds to expenditures incurred in the design and evaluation of future power plant facilities in the countries in which the Company currently operates. These projects have different level of advance such as: temporal concessions, environmental impact studies in process and others. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | The total carrying amounts of intangible assets with a finite useful life and with an indefinite useful life or not yet available for use |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                          |   | As at December 31 |    |
|-------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                          |   | 2016              |    |   | 2015 |   |
|                                                                          |   | $ thousands       |    |
| Intangible assets with a finite useful life                                   |   |              | 280,683 |   |   |   | 25,673 |   |
| Intangible assets with an indefinite useful life or not yet available for use |   |              | 96,095  |   |   |   | 121,571 |   |
|                                                                          |   |              | 376,778 |   |   |   | 147,244 |   |

----

|  | C. | Examination of impairment of cash generating units containing goodwill |
|--|----|------------------------------------------------------------------------|

|        |   | As at December 31 |   |
|-------------|--------|-------------------|--------|
|        |   | 2016              |   |   | 2015 |   |
|        |   | $ thousands       |   |
|        |   |              |   |   |   |   |
| Nejapa      |   |              | 40,693 |   |   |   | 40,693 |   |
| Kallpa      |   |              | 10,934 |   |   |   | 10,934 |   |
| Energuate*  |   |              | 37,651 |   |   |   | — |   |
| Surpetroil* |   |              | 6,699  |   |   |   | 6,383 |   |
| AIE*        |   |              | 118    |   |   |   | 116 |   |
|        |   |              | 96,095 |   |   |   | 58,126 |   |

|  | D. |       Impairment testing |
|--|----|----------------------------------------------|

|                       |   | 2016       |   |   | 2015   |   |
|----------------------------|--------|------------|--------|--------|--------|--------|
| Discount rate              |   | In percent |   |
| Peru                       |   |       | 6.7    |   |   |   | 7.4 |   |
| Energuate                  |   |       | 8.9    |   |   |   | — |   |
| El Salvador                |   |       | 9.8    |   |   |   | 10.0 |   |
| Colombia                   |   |       | 8.2    |   |   |   | 9.2 |   |
| Terminal value growth rate |   |       | 2      |   |   |   | 1.2-2.0 |   |

|  | • | Existing power purchase agreements (PPAs) signed and existing number of customers |
|--|---------|-----------------------------------------------------------------------------------|

----

|  | • | Investment schedule—I.C. Power Management has used the updated investment schedule in countries in which those companies operate, in order that the supply satisfies the demand growth in an efficient manner. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | The production mix of each country was determined using specifically-developed internal forecast models that consider factors such as prices and availability of commodities, forecast demand of electricity, planned construction or the commissioning of new capacity in the country’s various technologies. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | The distribution business profits were determined using specifically-developed internal forecast models that consider factors such as forecasted demand, fuel prices, energy purchases, collection rates, percentage of losses, quality service improvement, among others. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Fuel prices have been calculated based on existing supply contracts and on estimated future prices including a price differential adjustment specific to every product according to local characteristics. |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Assumptions for energy sale and purchase prices and output of generation facilities are made based on complex specifically-developed internal forecast models for each country. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Demand—Demand forecast has taken into consideration the most probable economic performance as well as growth forecasts of different sources. |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | Technical performance—The forecast takes into consideration that the power plants have an appropriate preventive maintenance that permits their proper functioning and the distribution business has the required capital expenditure to expand and perform properly in order to reach the targeted quality levels. |
|--|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                               |   | As at December 31  |      |
|--------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                               |   | 2016                    |      |   | 2015 |   |
|                                                               |   | $ thousands             |      |
| Current liabilities                                                |   |                    |      |   |   |   |
|   Short-term credit:                                     |   |                    |      |   |   |   |
|   Short-term loans from banks and financial institutions |   |                    | 213,417   |   |   |   | 179,317 |   |
|                                                               |   |                    | 213,417   |   |   |   | 179,317 |   |
|   Current maturities of long-term liabilities:           |   |                    |      |   |   |   |   |   |
|   Loans from banks and financial institutions            |   |                    | 251,803   |   |   |   | 132,222 |   |
|   Non-convertible debentures                             |   |                    | 10,617    |   |   |   | 15,400 |   |
|   Liability in respect of financing lease                |   |                    | 6,976     |   |   |   | 25,729 |   |
|                                                               |   |                    | 269,396   |   |   |   | 173,351 |   |
|   Total current liabilities                              |   |                    | 482,813   |   |   |   | 352,668 |   |
| Non-current liabilities                                            |   |                    |      |   |   |   |   |   |
|   Loans from banks and financial institutions            |   |                    | 1,903,323 |   |   |   | 1,550,480 |   |
|   Non-convertible debentures                             |   |                    | 867,287   |   |   |   | 671,247 |   |
|   Liability in respect of financing lease                |   |                    | 88,169    |   |   |   | 163,774 |   |
|   Other long-term balances*                              |   |                    | 240,213   |   |   |   | 152,760 |   |
|   Total other long-term liabilities                      |   |                    | 3,098,992 |   |   |   | 2,538,261 |   |
|   Less current maturities                                |   |                    | (269,396  | ) |   |   | (173,351 | ) |
|   Total non-current liabilities                          |   |                    | 2,829,596 |   |   |   | 2,364,910 |   |

| * | Included in the Other long-term balances were mainly the loan payable of $224 million to IC (See Note 1.B.1.b) and $16 million to Ansonia (See Note 10.C.b.5). |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |      |                         |        |           |   |           |      |      | As at            |    |    | As at             |   |
|------------------------------------------|-----------|------------------------------|-------------|----------------|--------|----------------|-----------|-----------|------------------|---------|---------|-------------------|--------|
|                                     |      |                         |        |           |   |           |      |      | December 31,2016 |    |    | December 31,2015  |   |
|                                     |      |                         |        |           |   |           |      |      | $ thousands      |    |
|                                     |      | Nominal annual Interest rate |        |  Currency |   |  Maturity |      |      |  Current    |    |    |  Non-Current |   |   |  Current |   |   |  Non-Current |   |
| Short-term loans from banks              |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |
| I.C. Power Distribution Holdings         |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |
| Credit Suisse (D)                        |      | LIBOR + 4%                   |             | USD            |   | 2017           |      |      |             | 119,487 |    |              |   | — |   |   |   | 117,334 |   |   |   | — |   |
| Samay                                    |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |
| Interbank                                |      |                         | 2.9%        |           | USD    |           |      | 2017      |             |    |    | 31,945            |   |   |   | — |   |   |   | — |   |   |   | — |   |
| DEOCSA                                   |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Various entities |      | LIBOR + 4.75%                |        | USD            |   |           | 2017      |      |             |    | 18,000  |              |   |   | — |   |   |   | — |   |   |   | — |   |
| DEORSA                                   |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Various entities |      | LIBOR + 4.75%                |        | USD            |   |           | 2017      |      |             |    | 12,000  |              |   |   | — |   |   |   | — |   |   |   | — |   |
| CDA                                      |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banco de Crédito del Perú      |      |                         | 0.83%       |           | USD    |           |      | 2017      |             |    |    | 14,000            |   |   |   | — |   |   |   | — |   |   |   | — |   |
| PQP                                      |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banco Industrial Guatemala               |      |                         | 4.75%       |           | USD    |           |      | 2017      |             |    |    | 6,000             |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Cobee                                    |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Various entities                         |      |                         | 4.2% / 5.5% |           | BOB    |           |      | 2016/2017 |             |    |    | 4,499             |   |   |   | — |   |   |   | 4,525 |   |   |   | — |   |
| Nejapa                                   |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |
| Scotiabank El Salvador                   |      |                         | 5.50%       |           | USD    |           |      | 2017      |             |    |    | 4,200             |   |   |   | — |   |   |   | 5,000 |   |   |   | — |   |
| Banco America Central                    |      |                         | 4.25%       |           | USD    |           |      | 2016      |             |    |    | —           |   |   |   | — |   |   |   | 1,200 |   |   |   | — |   |
| Empresa Energética Corinto Ltd      |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banco de América Central (BAC)      |      |                         | 5.25%       |           | USD    |           |      | 2017      |             |    |    | 1,586             |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Cepp                                     |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Scotiabank                               |      |                         | 2.4%        |           | USD    |           |      | 2017      |             |    |    | 1,000             |   |   |   | — |   |   |   | — |   |   |   | — |   |
| BHD Bank                                 |      |                         | 2.53%       |           | USD    |           |      | 2017      |             |    |    | 200               |   |   |   | — |   |   |   | 3,000 |   |   |   | — |   |
| Surenergy                                |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banco Davivienda                         |      | DTF + 4.5%                   |        | COP            |   |           | 2017      |      |             |    | 500     |              |   |   | — |   |   |   | — |   |   |   | — |   |
| Kallpa Generación                   |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banco de Crédito del Perú      |      |                         | 0.69%       |           | USD    |           |      | 2016      |             |    |    | —           |   |   |   | — |   |   |   | 30,000 |   |   |   | — |   |
| Scotiabank Perú                     |      |                         | 0.63%       |           | USD    |           |      | 2016      |             |    |    | —           |   |   |   | — |   |   |   | 15,000 |   |   |   | — |   |
| Surpetroil                               |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Various entities                         |      | DTF+2.95%/4.15%              |        | COP            |   |           | 2016/2015 |      |             |    | — |              |   |   | — |   |   |   | 2,069 |   |   |   | — |   |
|                                     | IBR+4.25% |                         |
| Cenergica                                |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banco America Central                    |      |                         | 4.25%       |           | USD    |           |      | 2016      |             |    |    | —           |   |   |   | — |   |   |   | 700 |   |   |   | — |   |
| I.C. Power Chile Inv                     |      |                         |        |           |   |           |      |      |             |    |    |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Scotiabank                               |      | TAB + 1.20%                  |        | CLP            |   |           | 2016      |      |             |    | — |              |   |   | — |   |   |   | 489 |   |   |   | — |   |
| Subtotal                                 |      |                         |        |           |   |           |      |      |             |    |    | 213,417           |   |   |   | — |   |   |   | 179,317 |   |   |   | — |   |

----

|                                                             |   |                         |   |           |   |           |   |   | As at            |    |   | As at             |   |
|-------------------------------------------------------------|--------|------------------------------|--------|----------------|--------|----------------|--------|--------|------------------|---------|--------|-------------------|--------|
|                                                        |   |                         |   |           |   |           |   |   | December 31,2016 |    |   | December 31,2015  |   |
|                                                        |   |                         |   |           |   |           |   |   | $ thousands      |    |
|                                                        |   | Nominal annual Interest rate |   |  Currency |   |  Maturity |   |   |  Current    |    |   |  Non-Current |   |   |  Current |   |   |  Non-Current |   |
| Loans from Banks and others                                 |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |
| Financial institutions:                                     |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |
| Cerro del Aguila (E)                                        |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |
| Tranche A                                                   |   | LIBOR+4.25% - LIBOR +5.50%   |        | USD            |   | 2024           |   |   |             | 15,344  |   |              |   | 320,437 |   |   |   | 4,199 |   |   |   | 306,064 |   |
| Tranche B                                                   |   | LIBOR+4.25% - LIBOR +6.25%   |        | USD            |   | 2024           |   |   |             | — |   |              |   | 180,896 |   |   |   | 2,261 |   |   |   | 164,803 |   |
| Tranche 1D                                                  |   | LIBOR+2.75% - LIBOR +3.60%   |        | USD            |   | 2024           |   |   |             | 1,760   |   |              |   | 38,697 |   |   |   | 519 |   |   |   | 37,827 |   |
| Tranche 2D                                                  |   | LIBOR+2.75% - LIBOR +3.60%   |   | USD            |   | 2027           |   |   |             | — |   |              |   | 21,959 |   |   |   | 280 |   |   |   | 20,369 |   |
| Samay I (F)                                                 |   |                              |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Sumitomo /HSBC / Bank of Tokyo                              |   | LIBOR+2.125% - LIBOR +2.625% |        | USD            |   | 2021           |   |   |             | 5,047   |   |              |   | 302,247 |   |   |   | 3,030 |   |   |   | 282,369 |   |
| Central Cardones (G)                                        |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Tranche One                                                 |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| BCI / Banco Itaú                                       |   | LIBOR+1.90%                  |        | USD            |   | 2021           |   |   |             | 3,781   |   |              |   | 18,228 |   |   |   | 3,535 |   |   |   | 22,008 |   |
| Tranche Two                                                 |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| BCI / Banco Itaú                                       |   | LIBOR+2.75%                  |        | USD            |   | 2021           |   |   |             | — |   |              |   | 13,383 |   |   |   | — |   |   |   | 17,884 |   |
| Colmito (H)                                                 |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco Bice                                                  |   | 7.90%                        |   | CLP            |   | 2028           |   |   |             | 625     |   |              |   | 16,121 |   |   |   | 524 |   |   |   | 15,799 |   |
| Consorcio Eólico Amayo, S.A.(I)                        |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco Centroamericano de Integración Económica    |   | 8.45% - LIBOR +4%            |   | USD            |   | 2023           |   |   |             | 5,307   |   |              |   | 37,376 |   |   |   | 4,428 |   |   |   | 42,704 |   |
| Consorcio Eólico Amayo (Fase II), S.A.(J)              |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Various entities                                            |   | LIBOR+5.75%, 8.53%,10.76%    |        | USD            |   | 2025           |   |   |             | 3,029   |   |              |   | 28,250 |   |   |   | 2,930 |   |   |   | 31,279 |   |
| Empresa Energética Corinto, Ltd.                       |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco de América Central (BAC)                         |   | 8.35%                        |   | USD            |   | 2018           |   |   |             | 3,124   |   |              |   | 3,402 |   |   |   | 2,865 |   |   |   | 6,527 |   |
| Tipitapa Power Company, Ltd.                                |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco de América Central (BAC)                         |   | 8.35%                        |   | USD            |   | 2018           |   |   |             | 2,801   |   |              |   | 3,328 |   |   |   | 2,568 |   |   |   | 6,130 |   |
| Jamaica Private Power Company                               |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Royal Bank of Canada                                        |   | LIBOR + 5.50%                |   | USD            |   | 2017           |   |   |             | 824     |   |              |   | — |   |   |   | 4,011 |   |   |   | — |   |
| Burmeister & Wain Scandinavian Contractor A/S |   | 3.59%                        |   | USD            |   | 2018           |   |   |             | 338     |   |              |   | 233 |   |   |   | 326 |   |   |   | 571 |   |
| PQP (K)                                                     |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco Industrial                                            |   | LIBOR + 4.50%                |   | USD            |   | 2019           |   |   |             | — |   |              |   | — |   |   |   | 4,268 |   |   |   | 10,743 |   |
| PQP (K)                                                     |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco Industrial                                            |   | LIBOR + 4.50%                |   | USD            |   | 2021           |   |   |             | 2,374   |   |              |   | 9,632 |   |   |   | — |   |   |   | — |   |
| Surpetroil S.A.S                                            |   |                         |   |           |   |           |   |   |             |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Banco de Occidente S.A                                      |   | IBR + 5.87%                  |   | COP            |   | 2018           |   |   |             | 504     |   |              |   | 375 |   |   |   | — |   |   |   | — |   |
| Banco Pichincha                                             |   | DTF + 3%                     |   | COP            |   | 2017           |   |   |             | 100     |   |              |   | — |   |   |   | 128 |   |   |   | 95 |   |

----

|                                                  |   |                              |   |                                          |   |      |   |   | As at            |    |   | As at            |   |
|--------------------------------------------------|--------|-----------------------------------|--------|-----------------------------------------------|--------|-----------|--------|--------|------------------|---------|--------|------------------|--------|
|                                             |   |                              |   |                                          |   |      |   |   | December 31,2016 |    |   | December 31,2015 |   |
|                                             |   |                              |   |                                          |   |      |   |   | $ thousands      |    |
|                                             |   | Nominal annualInterest rate       |   | Currency                                      |   | Maturity  |   |   | Current          |    |   | Non-Current      |   |   | Current |   |   | Non-Current |   |
| Kanan (L)                                        |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |
| Scotiabank                                       |   | LIBOR + 3.5%                      |   | USD                                           |   | 2021      |   |   |             | 46,094  |   |             |   | — |   |   |   | — |   |   |   | — |   |
| Overseas Investments Peru (M)                    |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Credit Suisse                                    |   | LIBOR + 5%-6.5%                   |   | USD                                           |   | 2017      |   |   |             | 97,274  |   |             |   | — |   |   |   | — |   |   |   | — |   |
| Kallpa Generación (N)                       |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Syndicated Loan—Various entities           |   | LIBOR+6.00%                       |   | USD                                           |   | 2019      |   |   |             | — |   |             |   | — |   |   |   | 17,384 |   |   |   | 41,279 |   |
| DEORSA (O)                                       |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Syndicated Loan – various banks            |   | LIBOR + 4.7% - LIBOR + 4.75%      |   | USD                                           |   | 2021/2025 |   |   |             | 10,167  |   |             |   | 67,857 |   |   |   | — |   |   |   | — |   |
| Syndicated Loan -  various banks            |   | TAPP minus 5.6% - TAPP minus 6.1% |   | GTQ                                           |   | 2021/2025 |   |   |             | 4,687   |   |             |   | 30,653 |   |   |   | — |   |   |   | — |   |
| DEOCSA (P)                                       |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Syndicated Loan – various banks            |   | LIBOR + 4.7% - LIBOR + 4.75%      |   | USD                                           |   | 2021/2025 |   |   |             | 16,876  |   |             |   | 107,488 |   |   |   | — |   |   |   | — |   |
| Syndicated Loan -  various banks            |   | TAPP minus 5.6% - TAPP minus 6.1% |   | GTQ                                           |   | 2021/2025 |   |   |             | 6,215   |   |             |   | 43,127 |   |   |   | — |   |   |   | — |   |
| RECSA (Q)                                        |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Banco G&T Continental                        |   | TAPP + 6.63%                      |        | GTQ                                           |   | 2020      |   |   |             | 931     |   |             |   | 3,722 |   |   |   | — |   |   |   | — |   |
| OPC Rotem Ltd                                    |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Lenders Consortium (R)                           |   | 4.85%-5.36%                       |   | NIS                                           |   | 2031      |   |   |             | 20,290  |   |             |   | 344,240 |   |   |   | 16,272 |   |   |   | 360,295 |   |
| Veolia Energy Israel Ltd. (S)                    |   |                              |   |        NIS |   | 2016      |   |   |             | — |   |             |   | — |   |   |   | 5,080 |   |   |   | — |   |
| I.C. Power Israel Ltd (T)                        |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Facility A—Amitim and Menora Pension Funds |   | 4.85%-/7.75%                      |   | NIS                                           |   | 2017      |   |   |             | — |   |             |   | — |   |   |   | 41,313 |   |   |   | — |   |
| Facility B—Amitim and Menora Pension Funds |   | 7.75%                             |   | NIS                                           |   | 2029      |   |   |             | 4,311   |   |             |   | 47,425 |   |   |   | 4,251 |   |   |   | 51,020 |   |
| ICPAD                                            |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Bank Hapoalim New York                           |   | 0.75%                             |   | USD                                           |   | 2019      |   |   |             | — |   |             |   | 12,000 |   |   |   | 12,000 |   |   |   | — |   |
| AGS                                              |   |                              |   |                                          |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Veolia Energy Israel Ltd                         |   |                              |   |  NIS                                     |   | 2019      |   |   |             | — |   |             |   | 444 |   |   |   | — |   |   |   | 414 |   |
| Sub total                                        |   |                              |   |                                          |   |      |   |   |             | 251,803 |   |             |   | 1,651,520 |   |   |   | 132,172 |   |   |   | 1,418,180 |   |

----

|                                                        |   |                         |   |     |   |      |   |   | As at            |    |   | As at            |   |
|--------------------------------------------------------|--------|------------------------------|--------|----------|--------|-----------|--------|--------|------------------|---------|--------|------------------|--------|
|                                                   |   |                         |   |     |   |      |   |   | December 31,2016 |    |   | December 31,2015 |   |
|                                                   |   |                         |   |     |   |      |   |   | $ thousands      |    |
|                                                   |   | Nominal annual Interest rate |   | Currency |   | Maturity  |   |   | Current          |    |   | Non-Current      |   |   | Current |   |   | Non-Current |   |
| Liabilities in respect of finance leases:              |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |
| Kallpa Generación                                 |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |
| Banco de Crédito del Perú/ Citibank (V) |   | LIBOR+3.00%                  |   | USD      |   | 2016      |   |   |             | — |   |             |   | — |   |   |   | 2,334 |   |   |   | — |   |
| Banco de Crédito del Perú (W)           |   | LIBOR+2.05%                  |   | USD      |   | 2017      |   |   |             | — |   |             |   | — |   |   |   | 8,802 |   |   |   | 19,865 |   |
| Scotiabank Perú (X)                               |   | 7.57%                        |   | USD      |   | 2018      |   |   |             | — |   |             |   | — |   |   |   | 7,508 |   |   |   | 30,248 |   |
| Banco de Crédito del Perú (Y)           |   | 7.15%                        |   | USD      |   | 2023      |   |   |             | 6,624   |   |             |   | 81,193 |   |   |   | 6,624 |   |   |   | 87,816 |   |
| Surpetroil S.A.S.                                      |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Banco de Occidente S.A.                                |   | DTF + 3.5%                   |   | COP      |   | 2017      |   |   |             | 223     |   |             |   | — |   |   |   | 461 |   |   |   | 116 |   |
| DEORSA                                                 |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Arrendadora Agromercantil                              |   | TAPP minus 2.47%             |   | GTQ      |   | 2017      |   |   |             | 129     |   |             |   | — |   |   |   | — |   |   |   | — |   |
|                                                   |   |                         |   |     |   |      |   |   |             | 6,976   |   |             |   | 81,193 |   |   |   | 25,729 |   |   |   | 138,045 |   |
| Sub total                                              |   |                         |   |     |   |      |   |   |             | 258,779 |   |             |   | 1,732,713 |   |   |   | 157,901 |   |   |   | 1,556,225 |   |
| Debentures                                             |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cobee                                                  |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Bonds Cobee III-1B (Z)                                 |   | 6.50%                        |   | USD      |   | 2017      |   |   |             | 1,750   |   |             |   | — |   |   |   | 1,750 |   |   |   | 1,750 |   |
| Bonds Cobee III-1C (bolivianos) (Z)                    |   | 9.00%                        |   | BOB      |   | 2020      |   |   |             | 1,586   |   |             |   | 4,757 |   |   |   | — |   |   |   | 6,343 |   |
| Bonds Cobee III-2 (Z)                                  |   | 6.75%                        |   | USD      |   | 2017      |   |   |             | 5,000   |   |             |   | — |   |   |   | — |   |   |   | 5,000 |   |
| Bonds Cobee III-3 (bolivianos) (Z)                     |   | 7.00%                        |   | BOB      |   | 2022      |   |   |             | — |   |             |   | 6,160 |   |   |   | — |   |   |   | 6,160 |   |
| Bonds Cobee IV-1A (AA)                                 |   | 6.00%                        |   | USD      |   | 2018      |   |   |             | — |   |             |   | 3,988 |   |   |   | — |   |   |   | 3,977 |   |
| Bonds Cobee IV-1B (AA)                                 |   | 7.00%                        |   | USD      |   | 2020      |   |   |             | — |   |             |   | 3,980 |   |   |   | — |   |   |   | 3,972 |   |
| Bonds Cobee IV-1C (bolivianos) (AA)                    |   | 7.80%                        |   | BOB      |   | 2024      |   |   |             | — |   |             |   | 12,030 |   |   |   | — |   |   |   | 12,023 |   |
| Cobee Bonds-IV Issuance 3 (AA)                         |   | 6.70%                        |   | USD      |   | 2019      |   |   |             | — |   |             |   | 4,973 |   |   |   | — |   |   |   | 4,961 |   |
| Cobee Bonds-IV Issuance 4 (bolivianos) (AA)            |   | 7.80%                        |   | BOB      |   | 2024      |   |   |             | — |   |             |   | 15,039 |   |   |   | — |   |   |   | 15,035 |   |
| Cobee Bonds-IV Issuance 5 (bolivianos) (AA)            |   | 5.75%                        |   | BOB      |   | 2026      |   |   |             | 1,950   |   |             |   | 17,697 |   |   |   | — |   |   |   | — |   |
| Inkia Energy Ltd                                       |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Inkia Bonds (BB)                                       |   | 8.38%                        |   | USD      |   | 2021      |   |   |             | — |   |             |   | 447,904 |   |   |   | — |   |   |   | 447,524 |   |
| Kallpa Generación                                 |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa Bonds (CC)                                      |   | 8.50%                        |   | USD      |   | 2022      |   |   |             | — |   |             |   | — |   |   |   | 13,650 |   |   |   | 135,455 |   |
| Kallpa Generación                                 |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Kallpa Bonds (DD)                                      |   | 4.88%                        |   | USD      |   | 2026      |   |   |             | — |   |             |   | 325,970 |   |   |   | — |   |   |   | — |   |
| Cepp                                                   |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cepp Bonds (EE)                                        |   | 6.00%                        |   | USD      |   | 2019      |   |   |             | — |   |             |   | 9,945 |   |   |   | — |   |   |   | 9,924 |   |
|                                                   |   |                         |   |     |   |      |   |   |             | 10,286  |   |             |   | 852,443 |   |   |   | 15,400 |   |   |   | 652,124 |   |
| Cobee                                                  |   |                         |   |     |   |      |   |   |             |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cobee Bonds (Premium)                                  |   |                         |   | USD-BOB  |   | 2017-2024 |   |   |             | 331     |   |             |   | 4,227 |   |   |   | — |   |   |   | 3,723 |   |
| Subtotal                                               |   |                         |   |     |   |      |   |   |             | 10,617  |   |             |   | 856,670 |   |   |   | 15,400 |   |   |   | 655,847 |   |
| Total                                                  |   |                         |   |     |   |      |   |   |             | 482,813 |   |             |   | 2,589,383 |   |   |   | 352,618 |   |   |   | 2,212,072 |   |

----

|  | DTF: | “Depósitos a Término Fijo”. Fixed-term deposits rate calculated by Colombia’s Central Bank. |
|--|------|-------------------------------------------------------------------------------------------------------------------------|

|  | TRE: | “Tasa de Referencia”. Weighted average for time deposits rates, calculated by Bolivia’s Central Bank. |
|--|------|-------------------------------------------------------------------------------------------------------------------------|

|                                                          |   | Weighted-average interest rate December 31 |   |   |  As at December 31 |   |
|---------------------------------------------------------------|--------|--------------------------------------------|--------|--------|-------------------------|--------|
|                                                          |   | 2016                                       |   |   | 2016                    |   |   | 2015 |   |
|                                                          |   | %                                          |   |   | $ thousands             |   |
| Current liabilities (without current maturities)              |   |                                       |   |   |                    |   |   |   |   |
|                                                          |   |                                       |   |   |                    |   |   |   |   |
| Short-term loans from financial institutions                  |   |                                       |   |   |                    |   |   |   |   |
| In dollars                                                    |   |                                       | 5.61   | %      |                    |   | 208,418 |   |   |   | 172,234 |   |
| In other currencies                                           |   |                                       | 5.23   | %      |                    |   | 4,999 |   |   |   | 7,083 |   |
|                                                          |   |                                       |   |   |                    |   | 213,417 |   |   |   | 179,317 |   |
|                                                          |   |                                       |   |   |                    |   |   |   |   |   |   |   |
| Non-current liabilities (including current maturities)        |   |                                       |   |   |                    |   |   |   |   |   |   |   |
|                                                          |   |                                       |   |   |                    |   |   |   |   |   |   |   |
| Debentures                                                    |   |                                       |   |   |                    |   |   |   |   |   |   |   |
| In dollars                                                    |   |                                       | 6.54   | %      |                    |   | 804,052 |   |   |   | 629,014 |   |
| In other currencies                                           |   |                                       | 5.37   | %      |                    |   | 63,235 |   |   |   | 42,233 |   |
|                                                          |   |                                       |   |   |                    |   | 867,287 |   |   |   | 671,247 |   |
| Loans from financial institutions (including financing lease) |   |                                       |   |   |                    |   |   |   |   |   |   |   |
| In dollars                                                    |   |                                       | 5.87   | %      |                    |   | 1,467,369 |   |   |   | 1,043,289 |   |
| In shekels                                                    |   |                                       | 5.35   | %      |                    |   | 416,710 |   |   |   | 490,645 |   |
| In quetzales                                                  |   |                                       | 7.29   | %      |                    |   | 89,464 |   |   |   | — |   |
| In other currencies                                           |   |                                       | 6.25   | %      |                    |   | 17,948 |   |   |   | 16,546 |   |
|                                                          |   |                                       |   |   |                    |   | 1,991,491 |   |   |   | 1,550,480 |   |
|                                                          |   |                                       |   |   |                    |   | 2,858,778 |   |   |   | 2,221,727 |   |

| C. | Liability in respect of financing lease |
|----|-----------------------------------------|

|                        |   | As at December 31, 2016      |    |   | As at December 31, 2015 |   |
|-----------------------------|--------|------------------------------|---------|--------|-------------------------|--------|
|                        |   | Minimum future lease rentals |    |   | Interest component      |   |   | Present value of minimum lease rentals |   |   | Minimum future lease rentals |   |   | Interest component |   |   | Present value of minimum lease rentals |   |
|                        |   | $ thousands                  |    |
|                        |   |                         |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less than one year          |   |                         | 13,016  |   |                    |   | 6,040 |   |   |   | 6,976 |   |   |   | 35,501 |   |   |   | 9,772 |   |   |   | 25,729 |   |
| From one year to five years |   |                         | 85,849  |   |                    |   | 19,217 |   |   |   | 66,632 |   |   |   | 134,976 |   |   |   | 26,053 |   |   |   | 108,923 |   |
| More than five years        |   |                         | 15,207  |   |                    |   | 646 |   |   |   | 14,561 |   |   |   | 31,454 |   |   |   | 2,332 |   |   |   | 29,122 |   |
|                        |   |                         | 114,072 |   |                    |   | 25,903 |   |   |   | 88,169 |   |   |   | 201,931 |   |   |   | 38,157 |   |   |   | 163,774 |   |

----

|  | D. | Credit Suisse— On December 29, 2015, I.C. Power Distribution Holdings Pte. Ltd., together with certain of its subsidiaries, executed a one-year secured credit agreement with Credit Suisse AG in an aggregate principal amount of $120 million to finance a portion of the acquisition of Estrella Cooperatief B.A. The loan under this facility bears interest on a quarterly basis at LIBOR plus a margin of 4% per annum and was secured with the shares of Estrella Cooperatief B.A. For additional information see Note 11.A.1.a. On December 21, 2016, I.C. Power Distribution extended the maturity date of this loan to June 29, 2017. As of December 31, 2016, the outstanding principal amount under this facility was $120 million. ($117 million as of December 31, 2015). |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | In August 2012, CDA, as borrower, Sumitomo Mitsui Banking Corporation, as administrative agent, Sumitomo Mitsui Banking Corporation, as SACE agent, the Bank of Nova Scotia, as Offshore Collateral Agent, Scotiabank Perú, S.A.A., as onshore collateral agent, and certain financial institutions, as lenders, entered into a senior secured syndicated credit facility for an aggregate principal amount not to exceed $591 million to finance the construction of CDA’s project. Loans under this facility will be disbursed in three tranches. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |    |   | Amount* |   |    | From July 2014 |   |   | From August 2017 |   |   | From August 2020 |   |   | From August 2023 |   |
|---------|---------|--------|---------|--------|---------|----------------|--------|--------|------------------|--------|--------|------------------|--------|--------|------------------|--------|
| Tranche |    |   | ($)     |   |    | to August 2017 |   |   | to August 2020   |   |   | to August 2023   |   |   | to maturity      |   |
|    | A  |        |    |   | 341,843 |           |   |   | 4.25             | %      |   |             | 4.75   | %      |             |   | 5.25 | % |   |   | 5.50 | % |
|    | B  |   |    |   | 184,070 |           |   |   | 4.25             | %      |   |             | 5.00   | %      |             |   | 5.75 | % |   |   | 6.25 | % |
|    | D  |   |    |   | 65,000  |           |   |   | 2.75             | %      |   |             | 3.25   | %      |             |   | 3.60 | % |   |   | 3.60 | % |

----

| F | In December 2014, Samay I S.A. signed a project finance credit agreement with: The Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation and HSBC Bank in order to finance $311 million, approximately 82% of the total cost of the project. This loan will initially bear interest at the rate of LIBOR plus 2.125% per annum, increasing to LIBOR plus 2.375% in December 2017 and to LIBOR plus 2.625% in December 2020 through maturity in December 2021. On December 18, 2014 Samay entered into an interest rate swap closing at a fixed all-in interest rate of 2.919% (Libor at 0.794 plus 2.125%) for 40% of total notional and only during the construction period. On September 16, 2015 Samay entered into an interest rate swap closing at a fixed all-in interest rate of 4.2343% for 93% of total notional beginning after the construction period. Samay has received proceeds from this facility in the aggregate amount of $ million311 million ($20 million, $138 million and $153 million, during 2016, 2015 and 2014, respectively). This amount is shown net of $4 million of transaction costs. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| G. | In relation to Inkia ́s acquisition of Central Cardones in December 2011, Inkia consolidated the amounts outstanding under Central Cardones’ credit agreement entered with Banco de Crédito e Inversiones and Banco Itaú Chile. The loans under this credit agreement were issued in two tranches of $38 million and $21 million, respectively. Loans under the first tranche bear interest at the rate of LIBOR plus 1.9% per annum, and the principal of this tranche is payable in 20 semi-annual installments through maturity in August 2021. Interest rate under these loans is swapped at an all-in rate of 6.80%. Loans under the second tranche bear interest semi-annually at the rate of LIBOR plus 2.75% per annum, increasing to LIBOR plus 3.75% per annum in March 2017, and the loan matures in August 2021. As of December 31, 2016, the outstanding principal amount under these loans was $35 million ($43 million as of December 31, 2015). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| H. | In January 2014, Colmito Spa signed a credit agreement with Banco Bice in an aggregate amount of Chilean pesos 12,579 million ($23 million). This loan bears an interest rate of 7.9% in Chilean pesos and is paid semiannually until final maturity in December 2028. In February 2014 Colmito entered into a cross currency swap closing at a fixed interest rate of 6.025% in U.S. Dollars. As of December 31, 2016, the outstanding balance under this loan was $17 million ($16 million as of December 31, 2015). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| I. | Consorcio Eolico Amayo S.A. – In October 2007, Amayo I entered into a 15 year $71 million loan agreement with Banco Centroamericano de Integración Economica (CABEI). This loan is secured by a first degree mortgage over all the improvements executed on Amayo I ́s project site, cessation of all the project contracts and the creation and maintenance of a reserve account for $2 million, to be controlled by CABEI. Part of this loan ($50 million) bears an interest rate of 8.45% and the other part ($21 million) an interest rate of LIBOR+4%, and is payable in quarterly installments until final maturity in February 2023. As of December 31, 2016, the outstanding balance under this loan was $43 million ($47 million as of December 31, 2015). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| J. | Consorcio Eolico Amayo (Fase II) S.A. – In November 2010, Amayo II entered into a 15 year $45 million loan agreement with Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V (FMO) Banco Centroamericano de Integración Economica (CABEI). This syndicated loan is secured by a list of guarantees. Loans under this credit agreement bear interest rates of 10.76%, 8.53% and LIBOR+5.75%. Loans with variable interest rate are swapped at an all-in rate of 8.31% until December 2019 and 8.25% from December 2019 until September 2022. All three loans are payable in quarterly installments until final maturity in September 2025. As of December 31, 2016, the outstanding balance under this loan was $31 million ($34 million as of December 31, 2015). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| K. | Puerto Quetzal Power LLC – In March 2012, Puerto Quetzal Power LLC (“PQP”) signed a loan agreement with seven financial institutions for an amount of $35.0 million. The loan is payable in quarterly installments until September 2019. Interest is accrued at LIBOR plus 4.5% annually. PQP entered into an interest rate swap contract to fix its interest at a rate of 6.0% per annum. The loan is secured by a pledge of substantially all of the assets of PQP and Poliwatt Ltd (“Poliwatt”), including PQP and its subsidiaries shares. As of December 31, 2016, the outstanding balance under this loan was nil ($15 million as of December 31, 2015). |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| L. | On January 15, 2016, Kanan Overseas I received a 60- day bridge loan in the aggregate amount of $61 million from Bank of Nova Scotia, as part of the three Credit Facilities approved. These proceeds were used to repay $50 million of an intercompany loan with Inkia Energy Ltd.; reimburse costs and expenses incurred in the project; and purchase fuel, raw material and other expenses. The original expiration of this loan was extended up to May 31, 2016. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| M. | Overseas Facility — On May 9, 2016, Overseas Investments Peru S.A., a 100% whole-owned subsidiary of the Group signed a $100 million Credit Facility with Credit Suisse AG. The proceeds from this facility were fully drawn on August 31, 2016. This facility with final maturity on November 9, 2017 bears an interest rate of 90-day Libor plus 5.00% (from the funding date to the 6-month anniversary of the funding date); 90-day Libor plus 5.75% (from one day after the 6-month anniversary to the 12-month anniversary of the funding date); and 90-day Libor plus 6.50% thereafter. As of December 31, 2016, the outstanding principal amount under this facility was $100 million. ($97 million, net of transaction costs). |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| N. | Kallpa Syndicated Loan - In November 2009, Kallpa entered into a secured credit agreement in the aggregate amount of $105 million to finance capital expenditures related to Kallpa’s combined-cycle plant. The loans under this credit agreement are secured by Kallpa’s combined-cycle plant substantially all of Kallpa’s other assets, including Kallpa’s revenues under its PPAs. The loan under this credit agreement bears interest payable monthly in arrears at a rate of LIBOR plus a margin of 5.50% per annum through November 2012, 5.75% per annum from November 2012 through November 2015 and 6.00% from November 2015 through maturity in October 2019. Scheduled amortizations of principal are payable monthly commencing in February 2013 through maturity in October 2019. As of December 31, 2015, the outstanding balance under this credit agreement was $59 million. As a result of the Kallpa’s issuance of its $350 million, 4.875% senior unsecured notes executed in May 2016, Kallpa repaid the $54 million outstanding under the syndicated loan in full. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | O. | DEORSA - In May 2011, DEORSA entered into a $41 million (approximately Q.314 million) and $90 million, 10-year syndicated secured loan agreement with a syndicate including Banco Agromercantil de Guatemala, S.A., as the manager of the guarantee and administrative agent, and certain financial institutions, to refinance DEORSA’s existing indebtedness as of the closing date of the acquisition, and to finance DEORSA’s working capital requirements. The U.S. Dollar denominated loans under this agreement bear interest at a fixed rate of 6.00% for the first two years and at a rate of 90-day US LIBOR plus 4.70% per annum through maturity on May 19, 2021. Guatemalan Quetzales denominated loans under this agreement bear interest at a variable interest rate calculated by the weighted average rate (TASA Activa Promedio Ponderada), or TAPP rate, less 5.6%, per annum. Scheduled amortizations of the aggregate principal amount outstanding under this agreement (generally 2.81%) are payable in quarterly installments through maturity. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| P. | DEOCSA - In May 2011, DEOCSA entered into a approximately $54 million (Q.416 million) and $150 million, 10-year syndicated secured loan agreement with a syndicate including Banco Agromercantil de Guatemala, S.A., as the manager of the guarantee and administrative agent, and certain financial institutions, as lenders, and other parties thereto, to finance the acquisition of DEOCSA by its previous owner, to refinance DEOCSA’s existing indebtedness as of the closing date of the acquisition, and to finance DEOCSA’s working capital requirements. The U.S. Dollar denominated loans under this agreement bear interest at a fixed rate of 6.00% for the first two years and at a rate of 90-day U.S. LIBOR plus 4.70% per annum through maturity on May 19, 2021. Guatemalan Quetzales denominated loans under this agreement bear interest at a variable interest rate calculated by the TAPP rate, as published by the Guatemalan Central Bank for the most recent date as of the first day of the relevant interest period, less 5.6%, per annum. Scheduled amortizations of the aggregate principal amount outstanding under this agreement (generally 2.81%) are payable in quarterly installments through maturity. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Q. | RECSA – In November 2013, RECSA entered into a approximately $4 million (Q.35 million) credit agreement with Banco G&T Continental. The loan is payable in semiannual installments until November 2020. Interest is accrued at TAPP rate less 6.63% per annum. As of December 31, 2016, the outstanding balance under this loan was $5 million. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| R. | OPC Lenders Consortium - In January 2011, OPC entered into a financing agreement with a consortium of lenders led by Bank Leumi L’Israel Ltd (“Bank Leumi”) (shareholder of Kenon - 14% shareholding) for the financing of its power plant project. The financing consortium includes Bank Leumi and institutional entities from the following groups: Clal Insurance Company Ltd.; Amitim Senior Pension Funds; Phoenix Insurance Company Ltd.; and Harel Insurance Company Ltd (“OPC’s lenders”). As part of the financing agreement, the lenders committed to provide OPC a long-term credit facility (including a facility for variances in the construction costs), a working capital facility, and a facility for financing the debt service, in the overall amount of approximately NIS 1,800 million (approximately $460 million). The loans are CPI linked and are repaid on a quarterly basis beginning in the fourth quarter of 2013 until 2031. As part of the financing agreement, OPC had certain restrictions to make distributions of dividends and repayments of shareholders’ loans, only after the third year after the completion of OPC’s power plant. On October 13, 2015, OPC and the senior lenders amended the Facility Agreement to remove this restriction. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| S. | Veridis— It corresponds to equity contributions made by Veolia Energy Israel Ltd. (“Veridis”) (previously Veolia Energy Israel Ltd) (OPC ́s minority shareholder) and presented as a capital note |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| T. | I.C. Power Israel Ltd. —On June 22, 2014, ICPI entered into a mezzanine financing agreement with Mivtachim Social Insurance and Makefet Fund Pension (“Amitim Pension Funds”) and Menora Mivtachim Insurance Ltd in the aggregate amount of NIS350 million ($93 million), consisting of three Facilities: (i) Tranche A bridge loan for NIS150 million, bearing interest of 4.85% p.a. to be repaid until March 31, 2017; (ii) Tranche B long-term loan for NIS200 million, bearing interest of 7.75% p.a., repayable on annual basis until March 2029; and (iii) Tranche C (only to cover shortfall amounts) for NIS350 million. As of December 31, 2016, no disbursements have been made under Tranche C. These loans are linked to CPI. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | U. | AIE Financing— In July 2016, AIE entered into a NIS1,006 million (approximately $261 million) loan agreement with Israel Discount Bank and Harel Insurance Group to finance the construction of AIE’s power plant in Hadera. The financing will mature 18 years after the completion of the construction period, and includes a term loan facility, a standby facility, a debt service reserve amount, or DRSA, facility to finance the DSRA deposit, a guarantee facility to facilitate the issuance of bank guarantees to be issued to third parties, a VAT facility (for the construction period only), a hedging facility (for the construction period only), and a working capital facility (for the operation period only). The term loan, standby, DSRA, and hedging facilities shall each bear interest at a rate of 2/3 Government CPI-linked Bond + 2.95% + 1/3 Government Bond + 2.95% per annum. The guarantees, VAT and working capital facilities shall each bear interest at a rate of the prime interest rate + 1.5% per annum. These terms are subject to AIE’s credit rating. As of December 31, 2016, AIE had not made drawings under this loan agreement. |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| V. | Citibank Perú and Banco de Crédito del Perú - In March 2006, Kallpa entered into a capital lease agreement with Citibank del Perú S.A., Citileasing S,A. and Banco de Crédito del Perú under which the lessors provided financing for the construction of the Kallpa I facility at Chilca in an aggregate amount of $56 million. Under the lease agreements, Kallpa made monthly payments beginning in December 2007 until the expiry of the lease in March 2016. These leases were secured by the assets of Kallpa in Peru. The lease bore an interest rate of 90 day LIBOR plus 3.00%. In March 2016, upon expiration of these leases, Kallpa executed its option to purchase the property related to the Kallpa I plant for a nominal cost ($2 million as at December 31, 2015). |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| W. | Banco de Crédito del Perú - In December 2007, Kallpa entered into a capital lease agreement with Banco de Crédito del Perú under which the lessor provided financing for the construction of the Kallpa II turbine in an aggregate amount of $82 million. Under the lease agreement, Kallpa made monthly payments beginning in December 2009 until the repayment of the lease (May 2016). These leases were secured by the assets of Kallpa in Peru. The lease bore an interest rate of 90 day LIBOR plus 2.05%. Kallpa entered into an interest rate swap to fix the interest rate at an all-in rate of 6.55%, see Note 17.A.a. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| X. | Scotiabank - In October 2008, Kallpa entered into a capital lease agreement with Scotiabank Perú under which the lessor provided financing for the construction of the Kallpa III turbine in an aggregate amount of $88 million. Under the lease agreement, Kallpa made monthly payments beginning in September 2010 until the repayment of the lease (May 2016). As of December 31, 2015, the aggregate outstanding principal amount under this lease was $38 million and bore a fixed interest rate of 7.57% p.a. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Y. | In April 2014, Kallpa entered into a capital lease agreement with Banco de Crédito del Perú for $108 million in order to finance the acquisition of the 193MW single turbine natural gas fired plant Las Flores from Duke Energy. Under the lease agreement, Kallpa makes quarterly payments beginning in July 2014 until the expiry of the lease in October 2023. The lease bears a fixed interest rate of 7.15% p.a. As of December 31, 2016, the aggregate outstanding principal amount under this lease was $88 million ($94 million as of December 31, 2015). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Z. | Bonds Cobee III - In February 2010, COBEE approved a bond program under which it is permitted to offer bonds in aggregate principal amounts of up to $40 million in multiple series. On March 12, 2010, COBEE issued and sold in the Bolivian market three series of notes in the aggregate principal amount of $14 million. The aggregate gross proceeds of these notes, which were issued at a premium, were $17 million. The Series A Notes, in the aggregate principal amount of $4 million pay interest semi-annually at the rate of 5.00% per annum through maturity in February 2014. Principal on these notes is payable at maturity. The Series B Notes, in the aggregate principal amount of $4 million, pay interest semi-annually at the rate of 6.50% per annum through maturity in February 2017. Principal on these notes will be paid in two equal annual installments commencing in February 2016. The Series C Notes, in the principal amount of Bs.44.2 million ($6 million), pay interest semi-annually at the rate of 9.00% per annum through maturity in January 2020. Principal on these notes will be paid in four equal annual installments commencing in February 2017. In April 2012, COBEE issued and sold two additional series of notes in the aggregate principal amount of $11 million. The aggregate gross proceeds of these notes, which were issued at premium, were $13 million. COBEE will amortize the premium reducing the interest expense related to these notes. The first series of these notes, in the aggregate of $5 million pays interest semi-annually at the rate of 6.75% per annum through final maturity in April 2017. Principal on these notes is payable at maturity. The second series of these notes in the aggregate principal amount of Bs.43 million ($6 million), pays interest semi-annually at the rate of 7% per annum through maturity in February 2022. These funds were used mainly to pay a tranche of Bolivian bonds due in June 2012. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| AA. | Bonds Cobee IV - In May 2013, COBEE approved a bond program under which COBEE is permitted to offer bonds in aggregate principal amount of up to $60 million in multiple series. In February 2014, COBEE issued and sold three series of notes in the aggregate principal amount of $20 million. The aggregate gross proceeds of these notes, which were issued at a premium, were $21 million. The Series A Notes, in the aggregate principal amount of $4 million pay interest semi-annually at the rate of 6.0% per annum through maturity in January 2018. The Series B Notes, in the aggregate principal amount of $4 million pay interest semi-annually at the rate of 7.0% per annum through final maturity in January 2020. The Series C Notes, in the aggregate principal amount of Bs.84 million ($12 million) pay interest semi-annually at the rate of 7.8% per annum through maturity in January 2024. In November 2014, COBEE issued and sold two series of notes in the aggregate principal amount of $21 million. The aggregate gross proceeds of these notes, which were issued at a premium, were $22,100. The first series of these Notes, in the aggregate principal amount of $5 million pay interest semi-annually at the rate of 6.70% per annum through maturity in October 2019. The second series of these notes in the aggregate principal amount of Bs.105 million ($15 million) pay interest semi-annually at the rate of 7.80% per annum through maturity in October 2024. In October 2016, COBEE issued and sold the last series of notes approved under the bond program in the aggregate principal amount of Bs.138 million ($20 million). The aggregate gross proceeds of the notes, which were issued at a premium, were Bs.152 million ($21,740). These Notes pay interest semi-annually at the rate of 5.75% per annum through maturity in August 2026. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| BB. | Inkia Bonds - On April 4, 2011, Inkia issued senior unsecured notes for an aggregate principal amount of $300 million in the international capital market under the rule 144A Regulation S. These notes accrue interest at a rate of 8.375% and will be payable semi-annually with final maturity in April 2021 and were recognized initially at fair value plus any directly attributable transaction costs. The proceeds from this issue were used mainly to finance Inkia’s equity contribution in the construction of Cerro del Aguila Project and to repurchase all of the Inkia Bonds. On September 9, 2013, Inkia reopened its 8.375% senior notes due 2021 for an aggregate principal amount of $150 million. The new notes have terms and conditions identical to the initial $300 million notes issued on April 4, 2011 and were issued at 104.75% plus accrued interest from April 4, 2013, resulting in gross proceeds of $157 million plus $6 million of accrued interest. The proceeds from this issue will be used mainly for working capital and general corporate purposes. Subsequent to initial recognition, these notes are measured at amortized cost using the effective interest method. As of December 31, 2016, the outstanding principal amount under these notes was $448 million ($448 million as of December 31, 2015). On September 5, 2014, Inkia requested the consents to its bondholders regarding certain proposed amendments to the Indenture: (i) Perform the IC split without being required to repurchase the bonds at a price equal to 101% of the aggregate principal; (ii) Request the repayment of the $150 million Credit Suisse/I.C. Power/Inkia Loan from the net proceeds of the Edegel sale; and (iii) Extend the investment period of the net proceeds from the Edegel sale from 12 to 30 months. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| CC. | Kallpa Bonds due 2022 - In November 2009, Kallpa issued $172 million aggregate principal amount of its 8.5% Bonds due 2022. Holders of these bonds are required to make subscription payments under a defined payment schedule during the 21 months following the date of issue. The proceeds of these bonds were used for capital expenditures related to Kallpa’s combined-cycle plant. Interest on these bonds accrues based on the principal received by Kallpa and is payable quarterly. Principal amortization payments under these bonds in amounts varying between 0.25% and 5.00% of the outstanding principal amount of these bonds commenced in May 2014 and will continue until maturity in May 2022. These bonds are secured by Kallpa’s combined-cycle plant and related assets. As of December 31, 2015, the aggregate outstanding principal amount of these bonds was $149,105. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| DD. | Kallpa Bonds due 2026 - In May 2016, senior notes for an aggregate principal amount of $350 million in the international capital market under the rule 144A Regulation S. The notes were issued under-par (99.258%) and interest accrues biannually in May and November of each year at a rate of 4.875%. Principal will be fully paid at maturity. The net proceeds from this issue in the amount of $347 million were used to repay in full the outstanding balance of: (i) the finance lease agreements (Kallpa II and Kallpa III); (ii) the Kallpa bonds due 2022, (iii) the syndicated loan and (iv) the $45 million short-term loans. The remainder of the proceeds were used for general corporate purposes. As a result of the redemption premium paid in respect of the Kallpa bonds due 2022 that qualified as a debt extinguishment, Kallpa recorded a $10 million finance expense. As of December 31, 2016, the outstanding amount of these notes was $326 million (net of transaction costs). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| EE. | In December 2010, CEPP approved a program bond offering under which CEPP is permitted to offer bonds in aggregate principal amount of up to $25 million in multiple series. In 2011 and 2010, CEPP issued and sold $20 million and $5 million of its 7.75% Bonds. CEPP used the proceeds of this offering to finance its continuing operations and repay intercompany debt. Interest on these bonds is payable monthly and principal of these bonds is due at maturity in May 2014. During the first quarter of 2014, CEPP issued and sold $25 million of its 6.00% Bonds due in January and March 2019. Part of these funds was used to prepay $15 million of its 7.75% Bonds outstanding due in May 2014. In October 2015, $15 million in CEPP’s bonds were repurchased. As of December 31, 2016, the outstanding principal amount net of transaction costs under these notes was $10 million ($10 million as of December 31, 2015). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| FF. | As at December 31, 2016 and 2015, the main covenants that the Group and certain Group entities must comply with during the term of the debts are as follows: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | Covenant                  |
|-----------------------------|--------|---------------------------|
| Group entities         |   | Shareholderequity         |   | Debt serviceto coverage ratio |   | Collateral ratio |   | Maximum leverage |   | Interest ratehedging |
| Kallpa Generación S.A. |   | Not required              |   | Not less than 1.20 |   | Not required |   | No more than 3.0 |   | Required |
| Samay                       |   | Not required              |   | Not less than 1.64 |   | Not required |   | Not required |   | Not required |
| CDA                         |   | Not required              |   | Not less than 1.20 |   | Not required |   | Not required |   | Not required |
| COBEE (Bonds)               |   | Not required              |   | Not less than 1.20 |   | Not required |   | Debt to capital no more than 1.2 |   | Not required |
| Cardones (Chile)            |   | Not required              |   | Not less than 1.10 |   | Not required |   | Not required |   | Not required |
| Colmito (Chile)             |   | Not required              |   | Not less than 1.15 |   | Not required |   | Not required |   | Not required |
| JPPC (Jamaica)              |   | Not required              |   | Not less than 1.10 |   | Not required |   | Debt to capital no more than 40% |   | Not required |
| Amayo I (Nicaragua)         |   | Not required              |   | Not less than 1.25 |   | Not required |   | Not required |   | Not required |
| Amayo II (Nicaragua)        |   | Not required              |   | Not less than 1.20 |   | Not required |   | Financial debt to Net Worth not in excess of 70:30 |   | Not required |
| Corinto (Nicaragua)         |   | Not required              |   | Not required |   | Not required |   | Maximum debt to EBITDA of 2.5 |   | Not required |
| Tipitapa (Nicaragua)        |   | Not required              |   | Not required |   | Not required |   | Maximum debt to EBITDA of 2.75. |   | Not required |
| CEPP (Dominican Republic)   |   | Not less than $21 million |   | Not less than 2.50 |   | Not required |   | Maximum debt to EBITDA of 3.5 |   | Not required |
| Energuate (Guatemala)       |   |                      |   | Not less than 1.30 |   |   |   | Maximum debt to EBITDA of 3.5 |   | Not required |
| Nejapa (El Salvador)        |   | > $40 million     |   | >1.50 |   | Not required |   | < 3.0 |   | Not required |
| Kanan (Panama)              |   | Not required              |   | Not less than 1.25 |   | Not required |   | Maximum debt to EBITDA of 3.5 |   | Not required |
| OPC                         |   | Not required              |   | Not less than 1.25 |   | Not required |   | Not required |   | Not required |

|            |   | As at December 31 |    |
|-----------------|--------|-------------------|---------|
|            |   | 2016              |    |   | 2015 |   |
|            |   | $ thousands       |    |
| Current         |   |              |    |   |   |   |
| Trade Payables  |   |              | 285,409 |   |   |   | 145,443 |   |
| Other Payables  |   |              | 203     |   |   |   | 11 |   |
|            |   |              | 285,612 |   |   |   | 145,454 |   |
| Non-current     |   |              |    |   |   |   |   |   |
| Trade Payables* |   |              | 44,057  |   |   |   | — |   |

----

|                                            |   | As at December 31 |   |
|-------------------------------------------------|--------|-------------------|--------|
|                                            |   | 2016              |   |   | 2015 |   |
|                                            |   | $ thousands       |   |
| Current liabilities:                            |   |              |   |   |   |   |
| Financial derivatives not used for hedging (a)  |   |              | 783    |   |   |   | 1,080 |   |
| Financial derivatives used for hedging (a)      |   |              | 11,563 |   |   |   | 11,480 |   |
| The State of Israel and government agencies     |   |              | 4,206  |   |   |   | 4,504 |   |
| Employees and payroll-related agencies          |   |              | 4,846  |   |   |   | 4,229 |   |
| Customer advances and deferred income           |   |              | 944    |   |   |   | 1,483 |   |
| Accrued expenses                                |   |              | 23,563 |   |   |   | 10,819 |   |
| Dividend payable to non-controlling interest    |   |              | 2,893  |   |   |   | — |   |
| Interest payable                                |   |              | 23,038 |   |   |   | 22,307 |   |
| Other (b)                                       |   |              | 19,467 |   |   |   | 52,971 |   |
|                                            |   |              | 91,303 |   |   |   | 108,873 |   |
| Non-current liabilities:                        |   |              |   |   |   |   |   |   |
| Financial derivatives not used for hedging (a)  |   |              | 1,342  |   |   |   | 2,196 |   |
| Financial derivatives used for hedging (a)      |   |              | 13,701 |   |   |   | 33,429 |   |
| Other financial derivatives (see note 10.C.b.5) |   |              | 29,594 |   |   |   | — |   |
|                                            |   |              | 44,637 |   |   |   | 35,625 |   |

|  | a. | As of December 31, 2016 and 2015, the derivatives maintained by the Group are as follow: |
|--|----|-----------------------------------------------------------------------------------------------|

|                     |   | Notional     |    |   | Fair value |   |    |   |   |
|--------------------------|--------|--------------|---------|--------|------------|--------|---------|--------|--------|
|                     |   |  amount |    |   | 2016       |   |    | 2015   |   |
|                     |   | $ thousands  |    |
| Hedge derivatives (i)    |   |              |    |
| Interest rate swap (a)   |   |         | 384,093 |   |       |   | (17,509 | )      |   |   | (30,979 | ) |
| Interest rate swap (b)   |   |         | 100,683 |   |       |   | — |   |   |   | (196 | ) |
| Interest rate swap (c)   |   |         | 124,400 |   |       |   | (2,955  | )      |   |   | (9,004 | ) |
| Interest rate swap (d)   |   |         | 15,553  |   |       |   | (2,401  | )      |   |   | (3,880 | ) |
| Exchange rate swap (e)   |   |         | 158,270 |   |       |   | — |   |   |   | (850 | ) |
| Exchange rate swap (f)   |   |         | 58,604  |   |       |   | (2,399  | )      |   |   | — |   |
|                     |   |         |    |   |       |   | (25,264 | )      |   |   | (44,909 | ) |
| Trading derivatives (ii) |   |         |    |   |       |   |    |   |   |   |   |   |
| Interest rate swap (f)   |   |         | 42,000  |   |       |   | (1,950  | )      |   |   | (2,994 | ) |
| Interest rate swap (g)   |   |         | 14,500  |   |       |   | — |   |   |   | (7 | ) |
| Interest rate swap (h)   |   |         | 8,443   |   |       |   | (175    | )      |   |   | (275 | ) |
|                     |   |         |    |   |       |   | (2,125  | )      |   |   | (3,276 | ) |

|  | (i) | Hedge derivatives |
|--|-----|-------------------|

|   | Entity       | Financing                    | Underlying item                              | Description                     | Fixed rate                      | Expiration |
|--------|--------------|------------------------------|---------------------------------------------------|---------------------------------|---------------------------------|------------|
| (a)    | CDA          | Syndicated                   | Libor plus 4.25%                        | 100% - Tranche A | 7.25-8.50%                      | Aug 2024   |
| (b)    | CDA          | Syndicated                   | Libor plus 4.25%                        | 50% - Tranche B                 | 5.38%                           | Feb 2016   |
| (c)    | Samay I | Syndicated                   | Libor plus 2.125%                       | 93% total debt                  | 4.23%                           | Dec 2021   |
| (d)    | Colmito      | Loan                         | 7.90% in Chilean Pesos             | 69% total debt                  | 6.025% in $           | Jun 2028   |
| (e)    | CDA          | EPC payments in Nuevos Soles | Spot exchange rate in Nuevos Soles | S/.403 million                  | S/. 2.546 for each $1 | Jan 2016   |

----

|   | Entity | Financing           | Underlying item      | Description    | Fixed rate                         | Expiration        |
|--------|--------|---------------------|---------------------------|----------------|------------------------------------|-------------------|
| (f)    | AIE    | EPC payments in EUR | Spot exchange rate in NIS | EUR 53 million | Average of NIS 4.24 for each EUR 1 | Jan 2017-Nov 2018 |
|   |   | EPC payments in USD | Spot exchange rate in NIS | EUR 3 million  | NIS 3.841 for each $ 1             | May-Aug 2017      |
|   |   |                |                      |           |                               |              |

|  |  (ii) | The Group has three additional interest swap agreements that are accounted for as trading derivatives because these derivatives were already in place when Inkia took control of the subsidiaries: |
|--|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Entity        | Financing  | Underlying item  | Description                        | Fixed rate | Expiration   |
|--------|---------------|------------|------------------|------------------------------------|-----------------|--------------|
| (f)    | Cardones      | Syndicated | Libor plus 1.9%  | 100% - Tranche I    | 6.80%           | Aug 2021     |
| (g)    | JPPC          | Loan       | Libor plus 5.5%  | 71%                                | 6.46%           | Mar 2017     |
| (h)    | Amayo II | Syndicated | Libor plus 5.75% | 84% - BCIE facility | 8.31%           | Dec 2019     |
|   | Amayo II      | Syndicated | Libor plus 5.75% | 49% - BCIE facility | 8.25%           | Sep 2022 (*) |

| b. | As of December 31, 2015, it corresponds mainly to payables related to CDA in the amount of $36 million. |
|----|---------------------------------------------------------------------------------------------------------|

|                                                |   | Financial Guarantee* |    |   | Others**    |   |    | Total  |   |   | Others** |   |
|-----------------------------------------------------|--------|----------------------|---------|--------|-------------|--------|---------|--------|--------|--------|----------|--------|
|                                                |   | 2016                 |    |   | 2015        |   |
|                                                |   | $ thousands          |    |   | $ thousands |   |
| Balance at January, 1                               |   |                 | — |   |        |   | 41,686  |   |   |   | 41,686   |   |   |   | 69,882 |   |
| Reclassified from long-term liabilities             |   |                 | 34,263  |   |        |   | — |   |   |   | 34,263   |   |   |   | — |   |
| Provision made during the year                      |   |                 | 130,193 |   |        |   | — |   |   |   | 130,193  |   |   |   | 14,657 |   |
| Provision reversed to profit/(loss) during the year |   |                 | (4,587  | )      |        |   | — |   |   |   | (4,587   | )      |   |   | (46,419 | ) |
| Provision paid                                      |   |                 | (36,023 | )      |        |   | (40,170 | )      |   |   | (76,193  | )      |   |   | — |   |
| Effects of foreign currency                         |   |                 | (5,083  | )      |        |   | (748    | )      |   |   | (5,831   | )      |   |   | 3,566 |   |
| Balance at December, 31                             |   |                 | 118,763 |   |        |   | 768     |   |   |   | 119,531  |   |   |   | 41,686 |   |

----

|  | a. | Kallpa Generación S.A. |
|--|----|-----------------------------|

|  | 1. | Import Tax Assessment against Kallpa. |
|--|----|---------------------------------------|

| Stage      |                   | Amount |             |   | Amount |           |
|------------|------------------------|--------|------------------|--------|--------|----------------|
|       |              |   | (In million S/.) |   |   | (In million $) |   |
| Kallpa I   | Superior Court of Lima |   |             | 32.5   |   |           |   | 9.7 |   |
| Kallpa II  | Peruvian Tax Court     |   |             | 23.0   |   |           |   | 6.8 |   |
| Kallpa III | Peruvian Tax Court     |   |             | 22.3   |   |           |   | 6.6 |   |
| Kallpa IV  | SUNAT                  |   |             | 1.3    |   |           |   | 0.4 |   |
|       |                   |   |             | 79.1   |   |           |   | 23.5 |   |

|  | 2. | Income Tax Audit 2012 against Kallpa |
|--|----|--------------------------------------|

----

|  | b. | Compensations against Energuate |
|--|----|---------------------------------|

|  | a. | DEOCSA: $16 million (Q. 124 million), and |
|--|----|-------------------------------------------|

|  | b. | DEORSA: $16 million (Q. 121 million) |
|--|----|--------------------------------------|

|  | · | That the service continues being rendered. |
|--|--------|--------------------------------------------|

|  | · | The future consumption volume of the regulated customers with charge from power. |
|--|--------|----------------------------------------------------------------------------------|

|  | · | The continuity of the regulation. |
|--|--------|-----------------------------------|

|  | · | That the customer files the claim or that CNEE obliges to compensation. |
|--|--------|-------------------------------------------------------------------------|

|  | · | The compensation mechanism is not applicable to most of the Group's customers. |
|--|--------|--------------------------------------------------------------------------------|

----

|  | c. | DEOCSA and DEORSA Tax claim |
|--|----|-----------------------------|

|  | d. | OPC – Tamar |
|--|----|-------------------|

----

| B. | Commitments |
|----|-------------|

|  | a. | I.C. Power Ltd |
|--|----|----------------|

| Guarantee party                |   | Description                                                       |   |  NIS thousands |    |   |  $ thousands |   |   | Cash Collateral$ thousands |   |
|--------------------------------|--------|-------------------------------------------------------------------|--------|---------------------|---------|--------|-------------------|--------|--------|----------------------------|--------|
| Advanced Integrated Energy Ltd |   | Facility agreement                                                |   |                | 100,000 |   |              |   | 26,036 |                       |   |   | - |   |
| OPC Rotem Ltd.                 |   | Facility agreement (1)                                            |   |                | 45,000  |   |              |   | 11,716 |                       |   |   | 5,858 |   |
| OPC Rotem Ltd.                 |   | PUA/EA Standards requirements - infrastructure services           |   |                | 38,595  |   |              |   | 10,048 |                       |   |   | 20,159( | 2) |
| OPC Rotem Ltd.                 |   | PUA/EA Standards requirements - infrastructure services           |   |                | 32,235  |   |              |   | 8,393  |                       |   |   | — |   |
| OPC Rotem Ltd.                 |   | Exposure of non-payment default resulting from "Ex post payments" |   |                | 12,000  |   |              |   | 3,124  |                       |   |   | — |   |
| Advanced Integrated Energy Ltd |   | GSPA agreement                                                    |   |                | — |   |              |   | 6,600  |                       |   |   |   |   |
| Advanced Integrated Energy Ltd |   | INGL agreement                                                    |   |                | 295     |   |              |   |   |                       |   |   | 3,515( | 3) |
| Advanced Integrated Energy Ltd |   | Conditional license                                               |   |                | 822     |   |              |   | 214    |                       |   |   | 3,455( | 3) |
| Advanced Integrated Energy Ltd |   | INGL – PRMS construction                                    |   |                | 9,100   |   |              |   | 2,369  |                       |   |   | - |   |
| Advanced Integrated Energy Ltd |   | Supply and generation licenses                                    |   |                | 4,495   |   |              |   | 1,170  |                       |   |   | 1,273 |   |
| OPC Rotem Ltd.                 |   | Ensure payments of IPP Rotem Operation and Maintenance Ltd.       |   |                | — |   |              |   | 350    |                       |   |   | 358 |   |

|  | (1) | On December 2014, in light of the Israel Corporation Ltd. split, the corporate guarantee issued by IC was replaced and a cash collateral deposited into a designated pledged account of OPC. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Cash collateral for the two guarantees related to PUA/EA Standards requirements - infrastructure services |
|--|-----|-----------------------------------------------------------------------------------------------------------|

|  | (3) | Cash collateral for conditional license, INGL agreement and supply and generation licenses. |
|--|-----|---------------------------------------------------------------------------------------------|

|  | b. | Inkia Energy Ltd |
|--|----|------------------|

| Guarantee party              |   | Description                      |   | $ thousands |   |
|------------------------------|--------|----------------------------------|--------|-------------|--------|
| Inkia Energy Ltd.       |   | Contingent equity for over costs |   |        | 15,729 |   |
| Samay I S.A.            |   | Contract Compliance              |   |        | 15,000 |   |
| Kanan overseas I, Inc   |   | Power Purchase agreement         |   |        | 9,534  |   |
| Kanan overseas I, Inc   |   | Power Purchase agreement         |   |        | 7,334  |   |
| Kanan overseas I, Inc   |   | Spot Purchases                   |   |        | 4,000  |   |
| Kanan overseas II, Inc  |   | Power Purchase agreement         |   |        | 1,467  |   |
| Kanan overseas I, Inc   |   | Storage and handling agreement   |   |        | 600    |   |

|  | c. | Cobee, Bolivia |
|--|----|----------------|

----

|  | d. | Kallpa, Peru |
|--|----|--------------|

|               |   | Cubic meters per day         |      |
|--------------------|--------|------------------------------|-----------|
|               |   | To be provided by Consortium |      |   | Minimum Purchase |   |
| First gas turbine  |   |                         | 1,200,000 |   |   |   | 648,000 |   |
| Second gas turbine |   |                         | 1,300,000 |   |   |   | 702,000 |   |
| Third gas turbine  |   |                         | 1,300,000 |   |   |   | 650,000 |   |
| Combined cycle     |   |                         | 450,000   |   |   |   | 225,000 |   |
| Total              |   |                         | 4,250,000 |   |   |   | 2,225,000 |   |

----

| Periods                             |   | Firm   |      |   | Interruptible |   |
|-------------------------------------|--------|--------|-----------|--------|---------------|--------|
| Initial Date – April 21, 2016 |   |   | 3,474,861 |   |          |   | 1,329,593 |   |
| April 22, 2016 - March 20, 2020     |   |   | 4,854,312 |   |          |   | 764,463 |   |
| March 20, 2020 - January 1, 2021    |   |   | 4,655,000 |   |          |   | 764,463 |   |
| January 2, 2021 - March 31, 2030    |   |   | 4,655,000 |   |          |   | 530,000 |   |
| April 1, 2030 - March 31, 2033      |   |   | 3,883,831 |   |          |   | 1,301,169 |   |
| April 1, 2033 - December 31, 2033   |   |   | 2,948,831 |   |          |   | 1,301,169 |   |

| e. | Samay I, Peru |
|----|---------------|

----

| f. | CDA, Peru |
|----|-----------|

| g. | OPC, Israel |
|----|-------------|

----

----

| h. | AIE, Israel |
|----|-------------|

|  | · | Short Term PSPA - Pursuant this agreement, AIE will supply steam and electricity until COD of the power plant, which shall be done through the existing energy center. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Long Term PSPA – Pursuant this agreement, AIE will supply steam and electricity during the period commencing upon COD of the power plant and for a period of 18 years thereafter. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| i. | Energuate, Guatemala |
|----|----------------------|

----

| Supplier                          |   | Contracted Capacity(MW) |   | Expiration Date |
|-----------------------------------|--------|-------------------------|--------|-----------------|
| Jaguar Energy Guatemala LLC  |   |                    | 200    |            | April 2030 |
| INDE                         |   |                    | 162    |            | April 2017 –April 2032 |
| Energía del Caribe      |   |                    | 60     |            | April 2030 |
| Renace, S.A.                 |   |                    | 55     |            | April 2030 –April 2033 |
| Hidro Xacbal, S.A.           |   |                    | 30     |            | April 2030 –April 2032 |

| Supplier                             |   | Contracted Capacity(MW) |   | Expiration Date |
|--------------------------------------|--------|-------------------------|--------|-----------------|
| Ingenio la Unión S.A            |   |                    | 90     |            | April 2018 – April 2020 |
| Ingenio Magdalena                    |   |                    | 72     |            | April 2018 –April 2032 |
| INDE                                 |   |                    | 51     |            | April 2018 - April 2032 |
| Renace S.A                           |   |                    | 31     |            | April 2030 –April 2033 |
| Energía Limpia de Guatemala S.A |   |                    | 21     |            | April 2032 |

| j. | Nejapa El Salvador |
|----|--------------------|

----

| k. | Poliwatt, Guatemala |
|----|---------------------|

| l. | I.C. Power Nicaragua, Nicaragua |
|----|---------------------------------|

|                                            |   |            |   |               |   | Contracted |   |
|--------------------------------------------|--------|-----------------|--------|--------------------|--------|------------|--------|
|                                       |   |            |   |     |   | Capacity   |   |
| Company                                    |   | Commencement    |   | Expiration         |   | (MW)       |   |
| Tipitapa Power Company                     |   | June 1999  |   | December 2018 |   |       | 51     |   |
| Empresa Energetica Corinto                 |   | April 1999 |   | December 2018 |   |       | 50     |   |
| Consorcio Eólico Amayo                |   | March 2009 |   | March 2024         |   |       | 40     |   |
| Consorcio Eólico Amayo (Fase II) |   | March 2010      |   | March 2025         |   |       | 23     |   |

| m. | Kanan Overseas I, Inc, Panama |
|----|-------------------------------|

|  | n. | Jamaica Power Private Company (JPPC), Jamaica |
|--|----|-----------------------------------------------|

----

|  |  A. | Share Capital |
|--|----------|---------------|

|                                                     |   | Company No. of shares |               |
|----------------------------------------------------------|--------|-----------------------|--------------------|
|                                                     |   |                  | (’000)  |   |
|                                                     |   |                  | 2016               |   |   |   | 2015 |   |
| Authorised and in issue at January, 1                    |   |                  | 53,694             |   |   |   | 23,500 |   |
| Authorised and in issued as part of the spin-off from IC |   |                  | —            |   |   |   | 29,883 |   |
|                                                     |   |                  | 53,694             |   |   |   | 53,383 |   |
| Issued for share plan                                    |   |                  | 26                 |   |   |   | 311 |   |
| Authorised and in issue at December. 31                  |   |                  | 53,720             |   |   |   | 53,694 |   |

|  |  B. | Translation reserve |
|--|----------|---------------------|

|  |  C. | Capital reserves |
|--|----------|------------------|

|  |  D. | Kenon's share plan |
|--|----------|--------------------|

----

|                                                     |   | For the Year Ended December 31 |      |
|----------------------------------------------------------|--------|--------------------------------|-----------|
|                                                     |   | 2016                           |      |   | 2015 |   |   | 2014 |   |
|                                                     |   | $ thousands                    |      |
| Capacity and energy purchases and transmission costs (a) |   |                           | 670,452   |   |   |   | 292,242 |   |   |   | 276,652 |   |
| Fuel, gas and lubricants (b)                             |   |                           | 458,427   |   |   |   | 468,343 |   |   |   | 502,170 |   |
| Payroll and related expenses                             |   |                           | 55,647    |   |   |   | 35,635 |   |   |   | 31,369 |   |
| Regulatory expenses                                      |   |                           | 57,878    |   |   |   | (8,025 | ) |   |   | 14,146 |   |
| Third party services                                     |   |                           | 37,671    |   |   |   | 12,581 |   |   |   | 10,838 |   |
| Plant unavailability                                     |   |                           | 6,946     |   |   |   | — |   |   |   | — |   |
| Intermediation fees (c)                                  |   |                           | 4,670     |   |   |   | 6,223 |   |   |   | — |   |
| Maintenance expenses                                     |   |                           | 41,489    |   |   |   | 37,470 |   |   |   | 26,787 |   |
| Other                                                    |   |                           | 25,390    |   |   |   | 18,386 |   |   |   | 119,179 |   |
|                                                     |   |                           | 1,358,570 |   |   |   | 862,855 |   |   |   | 981,141 |   |

| (a) | In 2016, it includes energy purchases of $355,554 thousand incurred by distribution companies. |
|-----|------------------------------------------------------------------------------------------------|

| (b) | Fuel cost is primarily heavy fuel oil consumed by the thermal plants in El Salvador, the Dominican Republic, Jamaica, Nicaragua and Guatemala. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Fees paid by Kallpa in relation to the profit shared on certain PPAs signed with distribution companies. |
|-----|----------------------------------------------------------------------------------------------------------|

|                          |   | For the Year Ended December 31 |    |
|-------------------------------|--------|--------------------------------|---------|
|                          |   | 2016                           |    |   | 2015 |   |   | 2014 |   |
|                          |   | $ thousands                    |    |
| Payroll and related expenses  |   |                           | 57,549  |   |   |   | 45,731 |   |   |   | 57,669 |   |
| Depreciation and amortization |   |                           | 12,686  |   |   |   | 9,130 |   |   |   | 7,724 |   |
| Professional fees             |   |                           | 34,125  |   |   |   | 23,377 |   |   |   | 37,944 |   |
| Other expenses                |   |                           | 42,396  |   |   |   | 25,585 |   |   |   | 27,781 |   |
|                          |   |                           | 146,756 |   |   |   | 103,823 |   |   |   | 131,118 |   |

----

|                                                     |   | For the Year Ended December 31 |    |
|----------------------------------------------------------|--------|--------------------------------|---------|
|                                                     |   | 2016                           |    |   | 2015 |   |   | 2014 |   |
|                                                     |   | $ thousands                    |    |
| Other Income                                             |   |                           |    |   |   |   |   |   |   |
| From changes in interest held in associate (See Note 10) |   |                           | — |   |   |   | — |   |   |   | 19,553 |   |
| Insurance claims (a)                                     |   |                           | 2,525   |   |   |   | 6,917 |   |   |   | 7,452 |   |
| Termination of contract compensation (b)                 |   |                           | 7,398   |   |   |   | 550 |   |   |   | — |   |
| Delays of contract compensation (c)                      |   |                           | 3,377   |   |   |   | — |   |   |   | — |   |
| Transfer of assets from customers                        |   |                           | 1,593   |   |   |   | — |   |   |   | — |   |
| Release of contingent accrual (d)                        |   |                           | 1,205   |   |   |   | 545 |   |   |   | — |   |
| Dividend income from other companies                     |   |                           | — |   |   |   | 3,850 |   |   |   | 18,178 |   |
| Gain on sale of property, plant and equipment            |   |                           | 4       |   |   |   | 14 |   |   |   | — |   |
| Other                                                    |   |                           | 4,908   |   |   |   | 3,574 |   |   |   | 5,854 |   |
|                                                     |   |                           | 21,010  |   |   |   | 15,450 |   |   |   | 51,037 |   |
| Other expenses                                           |   |                           |    |   |   |   |   |   |   |   |   |   |
| Other                                                    |   |                           | 5,413   |   |   |   | 7,076 |   |   |   | 13,970 |   |
|                                                     |   |                           | 5,413   |   |   |   | 7,076 |   |   |   | 13,970 |   |

|  | (a) | Corresponds mainly to Consorcio Eolico Amayo (Fase II) and COBEE claims in relation to three wind towers damaged and Sainani plant, respectively. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Includes termination of contract compensation received by Kallpa from Coelvisac and Compania Minera Raura in 2016 and 2015, respectively. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Includes compensation received by Energuate for delays in the start of power supply by generators companies. |
|--|-----|--------------------------------------------------------------------------------------------------------------|

|  | (d) | Comprise of JPPC holdings release part of its contingent accruals. |
|--|-----|--------------------------------------------------------------------|

|                                                                  |   | For the Year Ended December 31 |     |
|-----------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                  |   | 2016                           |     |   | 2015 |   |   | 2014 |   |
|                                                                  |   | $ thousands                    |     |
| Financing income                                                      |   |                           |     |   |   |   |   |   |   |
| Interest income from bank deposits                                    |   |                           | 3,703    |   |   |   | 2,675 |   |   |   | 2,226 |   |
| Net change from change in exchange rates                              |   |                           | 8,972    |   |   |   | - |   |   |   | - |   |
| Net changes in fair value of Tower options series 9                   |   |                           | -        |   |   |   | 2,119 |   |   |   | 8,350 |   |
| Net change in fair value of derivative financial instruments          |   |                           | 1,561    |   |   |   | 3,400 |   |   |   | - |   |
| Other income                                                          |   |                           | 4,245    |   |   |   | 5,218 |   |   |   | 5,667 |   |
| Financing income                                                      |   |                           | 18,481   |   |   |   | 13,412 |   |   |   | 16,243 |   |
| Financing expenses                                                    |   |                           |     |   |   |   |   |   |   |   |   |   |
| Interest expenses to banks and others                                 |   |                           | (182,905 | ) |   |   | (107,419 | ) |   |   | (108,224 | ) |
| Net change in fair value of derivative financial instruments          |   |                           | -        |   |   |   | - |   |   |   | (592 | ) |
| Net change from change in exchange rates                              |   |                           | -        |   |   |   | (12,554 | ) |   |   | - |   |
| Other expenses                                                        |   |                           | (6,694   | ) |   |   | (4,255 | ) |   |   | (1,363 | ) |
| Financing expenses                                                    |   |                           | (189,599 | ) |   |   | (124,228 | ) |   |   | (110,179 | ) |
| Net financing expenses recognized in the statement of profit and loss |   |                           | (171,118 | ) |   |   | (110,816 | ) |   |   | (93,936 | ) |

----

|                                           |   | For the Year Ended December 31 |   |
|------------------------------------------------|--------|--------------------------------|--------|
|                                           |   | 2016                           |   |   | 2015 |   |   | 2014 |   |
|                                           |   | $ thousands                    |   |
| Current taxes on income                        |   |                           |   |   |   |   |   |   |   |
| In respect of current year                     |   |                           | 33,975 |   |   |   | 29,509 |   |   |   | 95,252 |   |
| In respect of prior years                      |   |                           | 331    |   |   |   | (294 | ) |   |   | (1,518 | ) |
| Deferred tax income                            |   |                           |   |   |   |   |   |   |   |   |   |   |
| Creation and reversal of temporary differences |   |                           | 25,028 |   |   |   | 33,163 |   |   |   | 9,607 |   |
| Total taxes on income                          |   |                           | 59,334 |   |   |   | 62,378 |   |   |   | 103,341 |   |

| B. | Reconciliation between the theoretical tax expense (benefit) on the pre-tax income (loss) and the actual income tax expenses |
|----|------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                             |   | For the Year Ended December 31 |     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                                                                             |   | 2016                           |     |   | 2015 |   |   | 2014 |   |
|                                                                                                                             |   | $ thousands                    |     |
| (Loss)/profit before taxes on income                                                                                             |   |                           | (334,668 | ) |   |   | 158,270 |   |   |   | 109,274 |   |
| Statutory tax rate                                                                                                               |   |                           | 17.00    | % |   |   | 17.00 | % |   |   | 26.50 | % |
| Tax computed at the statutory tax rate                                                                                           |   |                           | (56,893  | ) |   |   | 26,906 |   |   |   | 28,958 |   |
|                                                                                                                             |   |                           |     |   |   |   |   |   |   |   |   |   |
| Increase (decrease) in tax in respect of:                                                                                        |   |                           |     |   |   |   |   |   |   |   |   |   |
| Elimination of tax calculated in respect of the Group’s share in losses of associated companies                            |   |                           | 31,463   |   |   |   | 52,148 |   |   |   | 45,288 |   |
| Income subject to tax at a different tax rate                                                                                    |   |                           | 25,859   |   |   |   | (3,209 | ) |   |   | 12,846 |   |
| Non-deductible expenses                                                                                                          |   |                           | 49,715   |   |   |   | 7,818 |   |   |   | 8,442 |   |
| Tax in respect of foreign dividend                                                                                               |   |                           | —  |   |   |   | — |   |   |   | 8,047 |   |
| Exempt income (a)                                                                                                                |   |                           | (754     | ) |   |   | (41,160 | ) |   |   | (21,145 | ) |
| Taxes in respect of prior years                                                                                                  |   |                           | 331      |   |   |   | (294 | ) |   |   | (1,518 | ) |
| Impact of change in tax rate                                                                                                     |   |                           | 6,857    |   |   |   | — |   |   |   | (3,131 | ) |
| Changes in temporary differences in respect of which deferred taxes are not recognized                                           |   |                           | 1,419    |   |   |   | 580 |   |   |   | (3,795 | ) |
| Tax losses and other tax benefits for the period regarding which deferred taxes were not recorded                                |   |                           | 4,415    |   |   |   | 8,335 |   |   |   | 16,183 |   |
| Differences between the measurement base of income reported for tax purposes and the income reported in the financial statements |   |                           | (1,421   | ) |   |   | 12,133 |   |   |   | 12,519 |   |
| Other differences                                                                                                                |   |                           | (1,657   | ) |   |   | (879 | ) |   |   | 647 |   |
| Taxes on income included in the statement of profit and loss                                                                     |   |                           | 59,334   |   |   |   | 62,378 |   |   |   | 103,341 |   |

| (a) | $754 thousand of exempt income effect in Amayo II in Nicaragua in 2016 ($5 million in 2015 and $219 thousand in 2014 including Amayo I and II). $36 million and $21 million of exempt income effect related to gain in distribution of dividend in kind and gain on bargain purchase in 2015 and 2014 respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| C. | Deferred tax assets and liabilities |
|----|-------------------------------------|

| 1. | Deferred tax assets and liabilities recognized The deferred taxes are calculated based on the tax rate expected to apply at the time of the reversal as detailed below. Deferred taxes in respect of subsidiaries were calculated based on the tax rates relevant for each country. The deferred tax assets and liabilities are derived from the following items: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                   |   | Property plant and equipment |     |   | Employee benefits |   |    | Carryforward of losses and deductions for tax purposes |   |   |  Other |   |   |  Total |    |
|------------------------------------------------------------------------|--------|------------------------------|----------|--------|-------------------|--------|---------|--------------------------------------------------------|--------|--------|-------------|--------|--------|-------------|---------|
|                                                                   |   | $ thousands                  |     |
| Balance of deferred tax asset (liability) as at January 1, 2015        |   |                         | (126,749 | )      |              |   | 824     |                                                   |   |   | 46,771      |   |   |        | (27,113 | ) |   |   | (106,267 | ) |
| Changes recorded on the statement of profit and loss                   |   |                         | 2,429    |   |              |   | (222    | )                                                      |   |   | 15,325      |   |   |        | (50,695 | ) |   |   | (33,163 | ) |
| Changes recorded to equity reserve                                     |   |                         | —  |   |              |   | — |                                                   |   |   | —     |   |   |        | 3,081   |   |   |   | 3,081 |   |
| Translation differences                                                |   |                         | 352      |   |              |   | (1      | )                                                      |   |   | (153        | )      |   |        | 885     |   |   |   | 1,083 |   |
| Changes in respect of business combinations                            |   |                         | —  |   |              |   | — |                                                   |   |   | —     |   |   |        | (124    | ) |   |   | (124 | ) |
| Balance of deferred tax asset (liability) as at December 31, 2015 |   |                         | (123,968 | )      |              |   | 601     |                                                   |   |   | 61,943      |   |   |        | (73,966 | ) |   |   | (135,390 | ) |
| Changes recorded on the statement of profit and loss                   |   |                         | (48,212  | )      |              |   | 286     |                                                   |   |   | 28,014      |   |   |        | 1,741   |   |   |   | (18,171 | ) |
| Changes recorded to equity reserve                                     |   |                         | —  |   |              |   | 61      |                                                   |   |   | —     |   |   |        | (5,249  | ) |   |   | (5,188 | ) |
| Translation differences                                                |   |                         | (1,495   | )      |              |   | 15      |                                                   |   |   | 398         |   |   |        | 791     |   |   |   | (291 | ) |
| Impact of change in tax rate                                           |   |                         | 7,638    |   |              |   | — |                                                   |   |   | (5,620      | )      |   |        | (8,875  | ) |   |   | (6,857 | ) |
| Changes in respect of business combinations                            |   |                         | (41,456  | )      |              |   | 748     |                                                   |   |   | —     |   |   |        | 6,355   |   |   |   | (34,353 | ) |
| Balance of deferred tax asset (liability) as at December 31, 2016 |   |                         | (207,493 | )      |              |   | 1,711   |                                                   |   |   | 84,735      |   |   |        | (79,203 | ) |   |   | (200,250 | ) |

|  |  2. | The deferred taxes are presented in the statements of financial position as follows: |
|--|----------|--------------------------------------------------------------------------------------|

|                               |   | As at December 31 |     |
|------------------------------------|--------|-------------------|----------|
|                               |   | 2016              |     |   | 2015 |   |
|                               |   | $ thousands       |     |
| As part of non-current assets      |   |              | 25,104   |   |   |   | 2,693 |   |
| As part of non-current liabilities |   |              | (225,354 | ) |   |   | (138,083 | ) |
|                               |   |              | (200,250 | ) |   |   | (135,390 | ) |

----

|  | • | The fully integrated regime, under which shareholders will be taxed on their share of the profits that area accrued annually by Chilean entity. The combined income tax rate under the regime will be 35%. |
|--|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | • | The partially integrated regime, under which shareholders will be taxed when profits are distributed. The combined income tax rate under the regime generally will be 44.45%; however, foreign shareholders that are resident in a country that has concluded a tax treaty with Chile will be entitled to a full tax credit, and thus may benefit from a combined rate of 35%. |
|--|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | · | Accrued in or derived from Singapore; or |
|--|--------|------------------------------------------|

|  | · | Received in Singapore from outside of Singapore. |
|--|--------|--------------------------------------------------|

|  | · | dividend income;  |
|--|--------|------------------------|

|  | · | trade or business profits of a foreign branch; or  |
|--|--------|---------------------------------------------------------|

|  | · | service fee income derived from a business, trade or |
|--|--------|------------------------------------------------------|

|  | · | profession carried on through a fixed place of operation in a foreign jurisdiction. |
|--|--------|-------------------------------------------------------------------------------------|

|  | 1. | The highest corporate tax rate (headline tax rate) of the foreign jurisdiction from which the income is received is at least 15% at the time the foreign income is received in Singapore; |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | The foreign income had been subjected to tax in the foreign jurisdiction from which they were received (known as the "subject to tax" condition). The rate at which the foreign income was taxed can be different from the headline tax rate; and |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | The Tax Comptroller is satisfied that the tax exemption would be beneficial to the person resident in Singapore. |
|--|----|------------------------------------------------------------------------------------------------------------------|

----

|  | A. | (Loss)/income allocated to the holders of the ordinary shareholders |
|--|----|---------------------------------------------------------------------|

|                                                                                                           |   | For the Year Ended December 31 |     |
|----------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|
|                                                                                                           |   | 2016                           |     |   | 2015 |   |   | 2014 |   |
|                                                                                                           |   | $ thousands                    |     |
| (Loss)/Income for the year attributable to Kenon’s shareholders                                          |   |                           | (411,937 | ) |   |   | 72,992 |   |   |   | 458,161 |   |
| (Loss)/Income for the year from discontinued operations (after tax)                                            |   |                           | —  |   |   |   | — |   |   |   | 470,421 |   |
| Less: NCI                                                                                                      |   |                           | —  |   |   |   | — |   |   |   | (3,495 | ) |
| (Loss)/Income for the year from discontinued operations (after tax) attributable to Kenon’s shareholders |   |                           | —  |   |   |   | — |   |   |   | 466,926 |   |
| (Loss)/Income for the year from continuing operations attributable to Kenon’s shareholders               |   |                           | (411,937 | ) |   |   | 72,992 |   |   |   | (8,765 | ) |

|  | B. | Number of ordinary shares |
|--|----|---------------------------|

|                                                                                        |   | For the Year Ended December 31 |   |
|---------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                        |   | 2016                           |   |   | 2015 |   |
|                                                                                        |   | ('000)                         |   |
| Weighted Average number of shares used in calculation of basic / diluted earnings per share |   |                           | 53,720 |   |   |   | 53,649 |   |

----

|  | (a) | ZIM |
|--|-----|-----|

|                                                                                              |   | Six Months Ended June 30, 2014 |       |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------|------------|
|                                                                                              |   | $ thousands                    |       |
| Sales                                                                                             |   |                           | 1,741,652  |   |
| Cost of sales                                                                                     |   |                           | (1,681,333 | ) |
| Gross profit (loss)                                                                               |   |                           | 60,319     |   |
| Operating loss                                                                                    |   |                           | (17,694    | ) |
|                                                                                              |   |                           |       |   |
| Loss before taxes on income                                                                       |   |                           | (119,168   | ) |
| Taxes on income                                                                                   |   |                           | (9,735     | ) |
| Loss after taxes on income                                                                        |   |                           | (128,903   | ) |
| Income from realization of discontinued operations                                                |   |                           | 608,603    |   |
| Income (loss) for the period from discontinued operations                                         |   |                           | 479,700    |   |
|                                                                                              |   |                           |       |   |
| Net cash flows provided by operating activities                                                   |   |                           | 41,031     |   |
| Net cash flows provided by (used in) investing activities                                         |   |                           | (24,104    | ) |
| Net cash flows used in financing activities                                                       |   |                           | (28,480    | ) |
| Impact of fluctuations in the currency exchange rate on the balances of cash and cash equivalents |   |                           | (801       | ) |
| Cash and cash equivalents used in discontinued operations                                         |   |                           | (12,354    | ) |

|  | (b) | Petrotec AG |
|--|-----|-------------|

|                                                                                                    |   | Year Ended December 31, 2014 |     |
|---------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                                                    |   | $ thousands                  |     |
| Sales                                                                                                   |   |                         | 221,791  |   |
| Expenses                                                                                                |   |                         | (226,323 | ) |
| Operating results before taxes on sales                                                                 |   |                         | (4,532   | ) |
| Taxes on sales                                                                                          |   |                         | 252      |   |
| Results after taxes                                                                                     |   |                         | (4,280   | ) |
| Loss from realisation of discontinued operation                                                         |   |                         | (4,999   | ) |
| Income (loss) for the period from discontinued operations                                               |   |                         | (9,279   | ) |
|                                                                                                    |   |                         |     |   |
| Net cash flows provided by operating activities                                                         |   |                         | 15,214   |   |
| Net cash flows used in investing activities                                                             |   |                         | (3,263   | ) |
| Net cash flows used in financing activities                                                             |   |                         | (8,644   | ) |
| Impact of fluctuations in the currency exchange rate on the  balances of cash and cash equivalents |   |                         | (1,753   | ) |
| Cash and cash equivalents used in discontinued operations                                               |   |                         | 1,554    |   |

----

|  | A. | General |
|--|----|---------|

|  | 1. | I.C. Power Generation - I.C. Power through its subsidiary companies, is engaged in the production, operation and sale of electricity in countries in Latin America, the Caribbean region and Israel. It also is engaged in the construction and operation of power stations in Latin America. |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | I.C. Power Distribution - I.C. Power through its subsidiary companies, is engaged in the distribution of electricity in Guatemala (This segment does not exist in 2015 and 2014 because it was acquired in 2016). |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Qoros Automotive – A China-based automotive company that is jointly-owned with a subsidiary of Wuhu Chery, a state controlled holding enterprise and large Chinese automobile manufacturing company. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | B. | Information regarding reportable segments |
|--|----|-------------------------------------------|

|                                             |   | I.C. Power  |      |   | I.C. Power   |   |    |   |   |   |     |   |   |        |     |   |   |   |
|--------------------------------------------------|--------|-------------|-----------|--------|--------------|--------|---------|--------|--------|--------|----------|--------|--------|-------------|----------|--------|--------|--------|
|                                             |   | Generation  |      |   | Distribution |   |    | Qoros* |   |   | Other    |   |   | Adjustments |     |   | Total  |   |
|                                             |   | $ thousands |      |
| 2016                                             |   |        |      |   |         |   |    |   |   |   |     |   |   |        |     |   |   |   |
| Total sales                                      |   |        | 1,365,229 |   |         |   | 508,628 |   |   |   | —  |   |   |        | 65       |   |   |   | — |   |   |   | 1,873,922 |   |
|                                             |   |        |      |   |         |   |    |   |   |   |     |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Adjusted EBITDA                                  |   |        | 343,130   |   |         |   | 77,281  |   |   |   | —  |   |   |        | (23,532  | )      |   |   | — |   |   |   | 396,879 |   |
| Depreciation and amortization                    |   |        | 157,070   |   |         |   | 14,782  |   |   |   | —  |   |   |        | 529      |   |   |   | — |   |   |   | 172,381 |   |
| Financing income                                 |   |        | (10,246   | )      |         |   | (4,000  | )      |   |   | —  |   |   |        | (16,580  | )      |   |   | 12,345 |   |   |   | (18,481 | ) |
| Financing expenses                               |   |        | 166,079   |   |         |   | 19,034  |   |   |   | —  |   |   |        | 16,831   |   |   |   | (12,345 | ) |   |   | 189,599 |   |
| Other items:                                     |   |        |      |   |         |   |    |   |   |   |     |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Share in losses/(income) of associated companies |   |        | (623      | )      |         |   | — |   |   |   | 142,534  |   |   |        | 43,681   |   |   |   | — |   |   |   | 185,592 |   |
| Provision of financial guarantee                 |   |        | —   |   |         |   | — |   |   |   | —  |   |   |        | 130,193  |   |   |   | — |   |   |   | 130,193 |   |
| Impairment of investments                        |   |        | —   |   |         |   | — |   |   |   | —  |   |   |        | 72,263   |   |   |   | — |   |   |   | 72,263 |   |
|                                             |   |        | 312,280   |   |         |   | 29,816  |   |   |   | 142,534  |   |   |        | 246,917  |   |   |   | — |   |   |   | 731,547 |   |
| Income/(loss) before taxes                       |   |        | 30,850    |   |         |   | 47,465  |   |   |   | (142,534 | )      |   |        | (270,449 | )      |   |   | — |   |   |   | (334,668 | ) |
| Income Taxes                                     |   |        | 45,177    |   |         |   | 12,471  |   |   |   | —  |   |   |        | 1,686    |   |   |   | — |   |   |   | 59,334 |   |
| Income/(loss) from continuing operations         |   |        | (14,327   | )      |         |   | 34,994  |   |   |   | (142,534 | )      |   |        | (272,135 | )      |   |   | — |   |   |   | (394,002 | ) |
|                                             |   |        |      |   |         |   |    |   |   |   |     |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Segment assets                                   |   |        | 4,217,341 |   |         |   | 599,809 |   |   |   | —  |   |   |        | 112,410  |   |   |   | — |   |   |   | 4,929,560 |   |
| Investments in associated companies              |   |        | 8,897     |   |         |   | — |   |   |   | 117,593  |   |   |        | 81,743   |   |   |   | — |   |   |   | 208,233 |   |
|                                             |   |        |      |   |         |   |    |   |   |   |     |   |   |        |     |   |   |   |   |   |   |   | 5,137,793 |   |
| Segment liabilities                              |   |        | 3,462,243 |   |         |   | 542,223 |   |   |   | —  |   |   |        | 239,123  |   |   |   | — |   |   |   | 4,243,589 |   |
| Capital expenditure                              |   |        | 261,616   |   |         |   | 28,174  |   |   |   | —  |   |   |        | 49       |   |   |   | — |   |   |   | 289,839 |   |

----

|                                             |   | I.C. Power  |      |   | Qoros* |   |     | Other  |   |   | Adjustments |   |   | Total  |     |
|--------------------------------------------------|--------|-------------|-----------|--------|--------|--------|----------|--------|--------|--------|-------------|--------|--------|--------|----------|
|                                             |   | $ thousands |      |
| 2015                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |
| Sales to external customers                      |   |        | 1,283,624 |   |   |   | —  |   |   |   | 329         |   |   |   | —  |   |   |   | 1,283,953 |   |
| Inter-segment sales                              |   |        | 5,115     |   |   |   | —  |   |   |   | 861         |   |   |   | —  |   |   |   | 5,976 |   |
|                                             |   |        | 1,288,739 |   |   |   | —  |   |   |   | 1,190       |   |   |   | —  |   |   |   | 1,289,929 |   |
| Elimination of inter-segment sales               |   |        | (5,115    | )      |   |   | —  |   |   |   | (861        | )      |   |   | 5,115    |   |   |   | (861 | ) |
| Total sales                                      |   |        | 1,283,624 |   |   |   | —  |   |   |   | 329         |   |   |   | 5,115    |   |   |   | 1,289,068 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Adjusted EBITDA                                  |   |        | 372,356   |   |   |   | —  |   |   |   | 367         |   |   |   | —  |   |   |   | 372,723 |   |
| Depreciation and amortization                    |   |        | 119,427   |   |   |   | —  |   |   |   | 620         |   |   |   | —  |   |   |   | 120,047 |   |
| Financing income                                 |   |        | (10,684   | )      |   |   | —  |   |   |   | (2,728      | )      |   |   | —  |   |   |   | (13,412 | ) |
| Financing expenses                               |   |        | 114,713   |   |   |   | —  |   |   |   | 9,515       |   |   |   | —  |   |   |   | 124,228 |   |
| Other items:                                     |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Share in losses/(income) of associated companies |   |        | (274      | )      |   |   | 196,223  |   |   |   | (9,190      | )      |   |   | —  |   |   |   | 186,759 |   |
| Gain from distribution of dividend in kind       |   |        | —   |   |   |   | —  |   |   |   | (209,710    | )      |   |   | —  |   |   |   | (209,710 | ) |
| Asset impairment                                 |   |        | —   |   |   |   | —  |   |   |   | 6,541       |   |   |   | —  |   |   |   | 6,541 |   |
|                                             |   |        | 223,182   |   |   |   | 196,223  |   |   |   | (204,952    | )      |   |   | —  |   |   |   | 214,453 |   |
| Income/(loss) before taxes                       |   |        | 149,174   |   |   |   | (196,223 | )      |   |   | 205,319     |   |   |   | —  |   |   |   | 158,270 |   |
| Income Taxes                                     |   |        | 62,353    |   |   |   | —  |   |   |   | 25          |   |   |   | —  |   |   |   | 62,378 |   |
| Income/(loss) from continuing operations         |   |        | 86,821    |   |   |   | (196,223 | )      |   |   | 205,294     |   |   |   | —  |   |   |   | 95,892 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Segment assets                                   |   |        | 4,068,951 |   |   |   | —  |   |   |   | 44,804      |   |   |   | —  |   |   |   | 4,113,755 |   |
| Investments in associated companies              |   |        | 8,993     |   |   |   | 158,729  |   |   |   | 201,300     |   |   |   | —  |   |   |   | 369,022 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   | 4,482,777 |   |
| Segment liabilities                              |   |        | 3,062,580 |   |   |   | —  |   |   |   | 156,642     |   |   |   | —  |   |   |   | 3,219,222 |   |
| Capital expenditure                              |   |        | 532,544   |   |   |   | —  |   |   |   | 138         |   |   |   | —  |   |   |   | 532,682 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| 2014                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Sales to external customers                      |   |        | 1,358,174 |   |   |   | —  |   |   |   | —     |   |   |   | —  |   |   |   | 1,358,174 |   |
| Inter-segment sales                              |   |        | 14,056    |   |   |   | —  |   |   |   | —     |   |   |   | —  |   |   |   | 14,056 |   |
|                                             |   |        | 1,372,230 |   |   |   | —  |   |   |   | —     |   |   |   | —  |   |   |   | 1,372,230 |   |
| Elimination of inter-segment sales               |   |        | (14,056   | )      |   |   | —  |   |   |   | —     |   |   |   | 14,056   |   |   |   | — |   |
| Total sales                                      |   |        | 1,358,174 |   |   |   | —  |   |   |   | —     |   |   |   | 14,056   |   |   |   | 1,372,230 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Adjusted EBITDA                                  |   |        | 347,937   |   |   |   | —  |   |   |   | (43,175     | )      |   |   | —  |   |   |   | 304,762 |   |
| Depreciation and amortization                    |   |        | 108,413   |   |   |   | —  |   |   |   | (255        | )      |   |   | —  |   |   |   | 108,158 |   |
| Financing income                                 |   |        | (8,858    | )      |   |   | —  |   |   |   | (38,622     | )      |   |   | 31,237   |   |   |   | (16,243 | ) |
| Financing expenses                               |   |        | 131,883   |   |   |   | —  |   |   |   | 9,533       |   |   |   | (31,237  | ) |   |   | 110,179 |   |
| Other items:                                     |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Share in losses/(income) of associated companies |   |        | (13,542   | )      |   |   | 174,806  |   |   |   | 9,633       |   |   |   | —  |   |   |   | 170,897 |   |
| Asset impairment                                 |   |        | 34,673    |   |   |   | —  |   |   |   | 13,171      |   |   |   | —  |   |   |   | 47,844 |   |
| Gain from disposal of investee                   |   |        | (157,137  | )      |   |   | —  |   |   |   | —     |   |   |   | —  |   |   |   | (157,137 | ) |
| Gain on bargain purchase                         |   |        | (68,210   | )      |   |   | —  |   |   |   | —     |   |   |   | —  |   |   |   | (68,210 | ) |
|                                             |   |        | 27,222    |   |   |   | 174,806  |   |   |   | (6,540      | )      |   |   | —  |   |   |   | 195,488 |   |
| Income/(loss) before taxes                       |   |        | 320,715   |   |   |   | (174,806 | )      |   |   | (36,635     | )      |   |   | —  |   |   |   | 109,274 |   |
| Income Taxes                                     |   |        | 98,854    |   |   |   | —  |   |   |   | 4,487       |   |   |   | —  |   |   |   | 103,341 |   |
| Income/(loss) from continuing operations         |   |        | 221,861   |   |   |   | (174,806 | )      |   |   | (41,122     | )      |   |   | —  |   |   |   | 5,933 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   |   |   |
| Segment assets                                   |   |        | 3,832,012 |   |   |   | —  |   |   |   | 836,596     |   |   |   | (784,688 | ) |   |   | 3,883,920 |   |
| Investments in associated companies              |   |        | 9,625     |   |   |   | 221,038  |   |   |   | 205,120     |   |   |   | —  |   |   |   | 435,783 |   |
|                                             |   |        |      |   |   |   |     |   |   |   |        |   |   |   |     |   |   |   | 4,319,703 |   |
| Segment liabilities                              |   |        | 2,860,358 |   |   |   | —  |   |   |   | 806,335     |   |   |   | (784,688 | ) |   |   | 2,882,005 |   |
| Capital expenditure                              |   |        | 592,388   |   |   |   | —  |   |   |   | 12,377      |   |   |   | —  |   |   |   | 604,765 |   |

----

|  | C. | Customer and Geographic Information |
|--|----|-------------------------------------|

|           |   | For the year ended December 31 |      |
|----------------|--------|--------------------------------|-----------|
|           |   | 2016                           |      |   | 2015 |   |   | 2014 |   |
|           |   | $ thousands                    |      |
| Peru           |   |                           | 528,121   |   |   |   | 447,679 |   |   |   | 436,673 |   |
| Guatemala      |   |                           | 570,510   |   |   |   | 108,440 |   |   |   | 33,000 |   |
| Israel         |   |                           | 356,465   |   |   |   | 326,061 |   |   |   | 413,578 |   |
| Others         |   |                           | 418,826   |   |   |   | 406,888 |   |   |   | 488,979 |   |
| Total revenues |   |                           | 1,873,922 |   |   |   | 1,289,068 |   |   |   | 1,372,230 |   |

|                     |   | As at December 31 |      |
|--------------------------|--------|-------------------|-----------|
|                     |   | 2016              |      |   | 2015 |   |
|                     |   | $ thousands       |      |
| Peru                     |   |              | 1,910,421 |   |   |   | 1,803,233 |   |
| Guatemala                |   |              | 682,985   |   |   |   | 46,720 |   |
| Israel                   |   |              | 495,639   |   |   |   | 456,456 |   |
| Others                   |   |              | 785,033   |   |   |   | 800,713 |   |
| Total non-current assets |   |              | 3,874,078 |   |   |   | 3,107,122 |   |

|  | A. | Identity of related parties: |
|--|----|------------------------------|

----

|  | B. | Transactions with directors and officers (Kenon's directors and officers): |
|--|----|----------------------------------------------------------------------------|

| B. Key management personnel compensation |   |   |   |   |   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
|                 |   | 2016        |   |   | 2015   |   |
|----------------------|--------|-------------|--------|--------|--------|--------|
|                 |   | $ thousands |   |
|                 |   |        |   |   |   |   |
| Short-term benefits  |   |        | 4,352  |   |   |   | 4,113 |   |
| Share-based payments |   |        | 547    |   |   |   | 556 |   |
|                 |   |        | 4,899  |   |   |   | 4,669 |   |

|  | C. | Transactions with related parties (excluding associates): |
|--|----|-----------------------------------------------------------|

|                                        |   | For the year ended December 31 |    |
|---------------------------------------------|--------|--------------------------------|---------|
|                                        |   | 2016                           |    |   | 2015 |   |   | 2014 |   |
|                                        |   | $ thousands                    |    |
| Sales from shipping*                        |   |                           | — |   |   |   | — |   |   |   | 7,138 |   |
| Sales of electricity                        |   |                           | 148,119 |   |   |   | 135,655 |   |   |   | 124,636 |   |
| Operating expenses of voyages and services* |   |                           | — |   |   |   | — |   |   |   | 37,511 |   |
| Administrative expenses                     |   |                           | 614     |   |   |   | 329 |   |   |   | 2,000 |   |
| Other income, net                           |   |                           | — |   |   |   | — |   |   |   | 33 |   |
| Financing expenses, net                     |   |                           | 14,475  |   |   |   | 10,716 |   |   |   | 17,443 |   |

|  | D. | Transactions with associates: |
|--|----|-------------------------------|

|                 |   | For the year ended December 31 |    |
|----------------------|--------|--------------------------------|---------|
|                 |   | 2016                           |    |   | 2015 |   |   | 2014 |   |
|                 |   | $ thousands                    |    |
| Sales of electricity |   |                           | — |   |   |   | 5,115 |   |   |   | 14,056 |   |
| Operating expenses   |   |                           | — |   |   |   | 204 |   |   |   | — |   |
| Other income, net    |   |                           | 178     |   |   |   | 95 |   |   |   | — |   |

----

|  | E. | Balances with related parties: |
|--|----|--------------------------------|

|                                |   | As at December |    |   | As at December 31       |   |
|-------------------------------------|--------|----------------|---------|--------|-------------------------|--------|
|                                |   | 2016           |    |   | 2015                    |   |
|                                |   | Ansonia        |    |   | Other related parties * |   |   | Total |   |   | Bank Leumi Group |   |   | Other related parties * |   |   | Total |   |
|                                |   | $ thousands    |    |   | $ thousands             |   |
| Cash and short-term deposit         |   |           | — |   |                    |   | 2,462 |   |   |   | 2,462 |   |   |   | 190,629 |   |   |   | 7,148 |   |   |   | 197,777 |   |
| Trade receivables                   |   |           | — |   |                    |   | 12,245 |   |   |   | 12,245 |   |   |   | — |   |   |   | 13,462 |   |   |   | 13,462 |   |
|                                |   |           |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans and Other Liabilities         |   |           |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| In US dollar or linked thereto      |   |           | 45,735  |   |                    |   | 222,971 |   |   |   | 268,706 |   |   |   | — |   |   |   | 118,497 |   |   |   | 118,497 |   |
| Weighted-average interest rates (%) |   |           | 6.00    | %      |                    |   | 7.24 | % |   |   | 6.62 | % |   |   | — |   |   |   | 6.68 | % |   |   | 6.68 | % |
| In CPI-linked Israeli currency      |   |           | — |   |                    |   | — |   |   |   | — |   |   |   | 41,677 |   |   |   | — |   |   |   | 41,677 |   |
| Weighted-average interest rates (%) |   |           | — |   |                    |   | — |   |   |   | — |   |   |   | 4.94 | % |   |   | — |   |   |   | 4.94 | % |
|                                |   |           |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Repayment years                     |   |           |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current maturities                  |   |           | — |   |                    |   | — |   |   |   |   |   |   |   | 1,833 |   |   |   | — |   |   |   |   |   |
| Second year                         |   |           | 45,735  |   |                    |   | — |   |   |   |   |   |   |   | 2,218 |   |   |   | — |   |   |   |   |   |
| Third year                          |   |           | — |   |                    |   | — |   |   |   |   |   |   |   | 2,353 |   |   |   | — |   |   |   |   |   |
| Fourth year                         |   |           | — |   |                    |   | — |   |   |   |   |   |   |   | 1,888 |   |   |   | — |   |   |   |   |   |
| Fifth year                          |   |           | — |   |                    |   | — |   |   |   |   |   |   |   | 2,610 |   |   |   | — |   |   |   |   |   |
| Sixth year and thereafter           |   |           | — |   |                    |   | 222,971 |   |   |   |   |   |   |   | 30,775 |   |   |   | 118,497 |   |   |   |   |   |
|                                |   |           | 45,735  |   |                    |   | 222,971 |   |   |   |   |   |   |   | 41,677 |   |   |   | 118,497 |   |   |   |   |   |

|  | * | IC, Israel Chemicals Ltd (“ICL”), Oil Refineries Ltd (“ORL”). |
|--|---|---------------------------------------------------------------------------------------|

|  | F. | Regarding the ZIM's restructuring and IC’s part in the restructuring, see Note 10.C.a. |
|--|----|----------------------------------------------------------------------------------------------|

|  | G. | Regarding the convertible loan from Ansonia to Quantum, see Note 10.C.b.5 |
|--|----|---------------------------------------------------------------------------|

|  | H. | Gas Sale Agreement with ORL, see Note 20.B.h. |
|--|----|-----------------------------------------------|

|  | I. | The separation agreement |
|--|----|--------------------------|

----

|                  |   |                                             |   |                                                                                                                                                                                                                         |
|-----------------------|--------|--------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Business              |   | Instrument                                       |   | Outstanding Amount as of December 31, 2014                                                                                                                                                                    |
|                  |
| Financial Instruments |
|                  |   |                                             |   |                                                                                                                                                                                                                         |
| Qoros                 |   | Capital note issued by Quantum to IC             |   | $626 million                                                                                                                                                                                                                 |
|                  |   |                                             |   |                                                                                                                                                                                                                         |
| I.C. Green            |   | Capital note issued by ICG to IC                 |   | NIS 508 million (approximately $131 million)                                                                                                                                                                            |
| Loan borrowed by ICG  |   | 22 million Euro (approximately $27 million) |
|                  |   |                                             |   |                                                                                                                                                                                                                         |
| Qoros                 |   | Shareholder loan to be provided to Qoros         |   | In February 2015, Kenon provided RMB400 million (approximately $65 million) as a shareholder loan to Qoros, subject to the release of IC’s back-to-back guarantees in respect of certain of Qoros’ indebtedness. |

----

| Beneficial Owner (Name/Address)    |   | Ordinary Shares Owned                                                |   | Percentage of Ordinary Shares               |
|------------------------------------|--------|----------------------------------------------------------------------|--------|---------------------------------------------|
| Ansonia Holdings Singapore B.V.1 * |   | 31,156,869                                                           |   | 58.0%                                       |
| XT Investments Ltd.2               |   |  5,727,128                                                      |   | 10.7%                                       |
| Directors and Executive Officers 3 |   |            — |   |       — |

| 1. | Based solely on the Schedule 13 D/A (Amendment No. 4) filed by Ansonia Holdings Singapore B.V. with the SEC on January 25, 2017. A discretionary trust, in which Mr. Idan Ofer is the prime beneficiary, indirectly holds 100% of Ansonia Holdings Singapore B.V. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Based solely upon the Schedule 13 D/A (Amendment No. 1) filed by XT Investments Ltd. and XT Holdings Ltd. with the SEC on January 12, 2016. XT Investments Ltd. is a direct wholly-owned subsidiary of XT Holdings Ltd., of which each of Orona Investments Ltd. and Lynav Holdings Ltd. is the direct owner of 50% of the outstanding ordinary shares. Orona Investments Ltd. is indirectly controlled by Mr. Ehud Angel. Lynav Holdings Ltd. is controlled by a discretionary trust in which Mr. Idan Ofer is a prime beneficiary. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Each individual beneficially owns less than 1% of Kenon’s ordinary shares. |
|----|----------------------------------------------------------------------------------|

----

|  | A. | General |
|--|----|---------|

|  | B. | Credit risk |
|--|----|-------------|

|  | (1) | Exposure to credit risk |
|--|-----|-------------------------|

|                                                                      |   | As at December 31 |    |
|---------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                      |   | 2016              |    |   | 2015 |   |
|                                                                      |   | $ thousands       |    |
|                                                                      |   | Carrying amount   |    |
| Cash and cash equivalents                                                 |   |              | 326,635 |   |   |   | 383,953 |   |
| Short term Deposits and restricted cash                                   |   |              | 89,545  |   |   |   | 308,702 |   |
| Trade receivables                                                         |   |              | 284,532 |   |   |   | 123,273 |   |
| Long-term trade receivables                                               |   |              | 10,120  |   |   |   | - |   |
| Other current assets                                                      |   |              | 28,462  |   |   |   | 12,339 |   |
| Deposits and other long-term receivables including derivative instruments |   |              | 66,434  |   |   |   | 40,993 |   |
|                                                                      |   |              | 805,728 |   |   |   | 869,260 |   |

|            |   | As at December 31 |    |
|-----------------|--------|-------------------|---------|
|            |   | 2016              |    |   | 2015 |   |
|            |   | $ thousands       |    |
| Israel          |   |              | 34,779  |   |   |   | 31,306 |   |
| South America   |   |              | 93,293  |   |   |   | 53,325 |   |
| Central America |   |              | 155,142 |   |   |   | 33,361 |   |
| Other regions   |   |              | 11,438  |   |   |   | 5,281 |   |
|            |   |              | 294,652 |   |   |   | 123,273 |   |

----

|  | (2) | Aging of debts and impairment losses |
|--|-----|--------------------------------------|

|                                   |   | As at December 31, 2016                           |    |        | As at December 31, 2015           |   |
|----------------------------------------|--------|---------------------------------------------------|---------|-------------|-----------------------------------|--------|
|                                   |   |  For which impairment was not recorded  |    |        | For which impairment was recorded |   |   | For which impairment was not recorded  |   |   | For which impairment was not recorded |   |
|                                   |   |                                              |    |  Gross |                              |   |  Impairment |   |   |   |   |  Gross |   |   |  Impairment |   |
|                                   |   | $ thousands                                       |    |        | $ thousands                       |   |
| Not past due                           |   |                                              | 233,787 |        |                              |   | 8 |   |   |   | (8 | ) |   |   | 109,502 |   |   |   | — |   |   |   | — |   |
| Past due up to 3 months                |   |                                              | 50,723  |        |                              |   | — |   |   |   | — |   |   |   | 12,210 |   |   |   |   |   |   |   | — |   |
| Past due 3 – 6 months  |   |                                              | 9,160   |        |                              |   | 282 |   |   |   | (282 | ) |   |   | 301 |   |   |   | — |   |   |   | — |   |
| Past due 6 – 9 months  |   |                                              | 83      |        |                              |   | — |   |   |   | — |   |   |   | 101 |   |   |   | — |   |   |   | — |   |
| Past due 9 – 12 months |   |                                              | 652     |        |                              |   | — |   |   |   | — |   |   |   | 932 |   |   |   | — |   |   |   | — |   |
| Past due more than one year            |   |                                              | 247     |        |                              |   | 4,714 |   |   |   | (4,714 | ) |   |   | 227 |   |   |   | 104 |   |   |   | (104 | ) |
|                                   |   |                                              | 294,652 |        |                              |   | 5,004 |   |   |   | (5,004 | ) |   |   | 123,273 |   |   |   | 104 |   |   |   | (104 | ) |

----

|  | C. | Liquidity risk |
|--|----|----------------|

|                                              |   | As at December 31, 2016      |      |
|---------------------------------------------------|--------|-------------------------------------------------------|-----------|
|                                              |   | Book value                                            |      |   | Projected cash flows |   |   | Up to 1 year |   |   | 1-2 years |   |   | 2-5 years |   |   | More than 5 years |   |
|                                              |   | $ thousands                                           |      |
| Non-derivative financial liabilities              |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans from banks and others *                     |   |                                                  | 213,417   |   |   |   | 219,651 |   |   |   | 219,651 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Trade payables                                    |   |                                                  | 285,612   |   |   |   | 285,612 |   |   |   | 285,612 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other payables                                    |   |                                                  | 160,540   |   |   |   | 160,540 |   |   |   | 59,650 |   |   |   | 10,121 |   |   |   | 21,718 |   |   |   | 69,051 |   |
| Non-convertible debentures **                     |   |                                                  | 867,287   |   |   |   | 1,190,032 |   |   |   | 58,113 |   |   |   | 57,217 |   |   |   | 616,765 |   |   |   | 457,937 |   |
| Loans from banks and others **                    |   |                                                  | 2,143,499 |   |   |   | 2,756,851 |   |   |   | 340,684 |   |   |   | 244,508 |   |   |   | 977,251 |   |   |   | 1,194,408 |   |
| Liabilities in respect of financing lease         |   |                                                  | 88,169    |   |   |   | 114,069 |   |   |   | 13,013 |   |   |   | 12,171 |   |   |   | 57,432 |   |   |   | 31,453 |   |
| Financial guarantee ***                           |   |                                                  | 118,763   |   |   |   | 118,763 |   |   |   | 118,763 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                              |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities – hedging instruments |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest SWAP contracts                           |   |                                                  | 22,865    |   |   |   | 22,865 |   |   |   | 9,930 |   |   |   | 5,788 |   |   |   | 4,192 |   |   |   | 2,955 |   |
| Forward exchange rate contracts                   |   |                                                  | 2,399     |   |   |   | 2,399 |   |   |   | 1,627 |   |   |   | 772 |   |   |   | - |   |   |   | - |   |
|                                              |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities not for hedging             |   |                                                  |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest SWAP contracts and options               |   |                                                  | 2,125     |   |   |   | 2,125 |   |   |   | 783 |   |   |   | 570 |   |   |   | 688 |   |   |   | 84 |   |
| Derivatives from debt restructure                 |   |                                                  | 29,594    |   |   |   | 29,594 |   |   |   | - |   |   |   | 29,594 |   |   |   | - |   |   |   | - |   |
|                                              |   |                                                  | 3,934,270 |   |   |   | 4,902,501 |   |   |   | 1,107,826 |   |   |   | 360,741 |   |   |   | 1,678,046 |   |   |   | 1,755,888 |   |

|  | ** | Includes current portion of long-term liabilities and long-term liabilities which were classified to short-term. |
|--|----|------------------------------------------------------------------------------------------------------------------|

|  | *** | Financial Guarantees contractual period in Qoros is dependent on Qoros’s timeliness to meet the obligation of current loans payable. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              |   | As at December 31, 2015 |      |
|---------------------------------------------------|--------|-------------------------|-----------|
|                                              |   | Book value              |      |   | Projected cash flows |   |   | Up to 1 year |   |   | 1-2 years |   |   | 2-5 years |   |   | More than 5 years |   |
|                                              |   | $ thousands             |      |
| Non-derivative financial liabilities              |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans from banks and others *                     |   |                    | 179,317   |   |   |   | 187,484 |   |   |   | 187,484 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Trade payables                                    |   |                    | 145,454   |   |   |   | 145,454 |   |   |   | 145,454 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other payables                                    |   |                    | 87,572    |   |   |   | 87,572 |   |   |   | 87,572 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Non-convertible debentures **                     |   |                    | 671,247   |   |   |   | 951,308 |   |   |   | 69,115 |   |   |   | 62,267 |   |   |   | 261,256 |   |   |   | 558,670 |   |
| Loans from banks and others **                    |   |                    | 1,668,977 |   |   |   | 2,331,220 |   |   |   | 204,100 |   |   |   | 214,583 |   |   |   | 490,088 |   |   |   | 1,422,449 |   |
| Liabilities in respect of financing lease         |   |                    | 163,774   |   |   |   | 201,929 |   |   |   | 35,501 |   |   |   | 49,955 |   |   |   | 67,749 |   |   |   | 48,724 |   |
| Financial guarantee ***                           |   |                    | 34,263    |   |   |   | 179,073 |   |   |   | 179,073 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                              |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities – hedging instruments |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest SWAP contracts                           |   |                    | 44,059    |   |   |   | 44,059 |   |   |   | 10,630 |   |   |   | 9,474 |   |   |   | 16,514 |   |   |   | 7,441 |   |
| Forward exchange rate contracts                   |   |                    | 850       |   |   |   | 850 |   |   |   | 850 |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                              |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities not for hedging             |   |                    |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest SWAP contracts and options               |   |                    | 3,276     |   |   |   | 3,276 |   |   |   | 1,080 |   |   |   | 1,081 |   |   |   | 940 |   |   |   | 175 |   |
|                                              |   |                    | 2,998,789 |   |   |   | 4,132,225 |   |   |   | 920,859 |   |   |   | 337,360 |   |   |   | 836,547 |   |   |   | 2,037,459 |   |

|  | ** | Includes current portion of long-term liabilities and long-term liabilities which were classified to short-term. |
|--|----|------------------------------------------------------------------------------------------------------------------|

|  | *** | Financial Guarantees contractual period in Qoros is dependent on Qoros’s timeliness to meet the obligation of current loans payable. $179 million is the maximum projected cash flow in relation to the financial guarantees provided to Chery with respect to the obligation of Qoros. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (a) | Exposure to CPI and foreign currency risks The Group’s exposure to CPI and foreign currency risk, based on nominal amounts, is as follows: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                 |   | As at December 31, 2016 |    |
|------------------------------------------------------|--------|-------------------------|---------|
|                                                 |   | Foreign currency        |    |
|                                                 |   | Shekel                  |    |   |   |   |
|                                                 |   | Unlinked                |    |   | CPI linked |   |   | Other |   |
| Non-derivative instruments                           |   |                    |    |   |   |   |   |   |   |
| Cash and cash equivalents                            |   |                    | 11,810  |   |   |   | — |   |   |   | 24,240 |   |
| Short-term investments, deposits and loans           |   |                    | 29,137  |   |   |   | — |   |   |   | 26,198 |   |
| Trade receivables                                    |   |                    | 34,779  |   |   |   | — |   |   |   | 172,664 |   |
| Other receivables                                    |   |                    | 665     |   |   |   | — |   |   |   | 6,964 |   |
| Long-term deposits and loans                         |   |                    | 20,349  |   |   |   | — |   |   |   | 16,412 |   |
| Total financial assets                               |   |                    | 96,740  |   |   |   | — |   |   |   | 246,478 |   |
|                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Loans from banks and others                          |   |                    | — |   |   |   | — |   |   |   | 34,998 |   |
| Trade payables                                       |   |                    | 26,913  |   |   |   | — |   |   |   | 128,512 |   |
| Other payables                                       |   |                    | 1,093   |   |   |   | 1,205 |   |   |   | 17,266 |   |
| Long-term loans from banks and others and debentures |   |                    | 444     |   |   |   | 416,266 |   |   |   | 465,262 |   |
| Total financial liabilities                          |   |                    | 28,450  |   |   |   | 417,471 |   |   |   | 646,038 |   |
|                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Total non-derivative financial instruments, net      |   |                    | 68,290  |   |   |   | (417,471 | ) |   |   | (399,560 | ) |
| Derivative instruments                               |   |                    | — |   |   |   | — |   |   |   | (2,421 | ) |
| Net exposure                                         |   |                    | 68,290  |   |   |   | (417,471 | ) |   |   | (401,981 | ) |
|                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
|                                                 |   | As at December 31, 2015 |    |
|------------------------------------------------------|--------|-------------------------|---------|
|                                                 |   | Foreign currency        |    |
|                                                 |   | Shekel                  |    |   |   |   |
|                                                 |   | Unlinked                |    |   | CPI linked |   |   | Other |   |
| Non-derivative instruments                           |   |                    |    |   |   |   |   |   |   |
| Cash and cash equivalents                            |   |                    | 103,844 |   |   |   | — |   |   |   | 39,892 |   |
| Short-term investments, deposits and loans           |   |                    | 73,112  |   |   |   | — |   |   |   | 5,305 |   |
| Trade receivables                                    |   |                    | 31,306  |   |   |   | — |   |   |   | 40,456 |   |
| Other receivables                                    |   |                    | 12,789  |   |   |   | — |   |   |   | 4,537 |   |
| Long-term deposits and loans                         |   |                    | 19,565  |   |   |   | — |   |   |   | 17,865 |   |
| Total financial assets                               |   |                    | 240,616 |   |   |   | — |   |   |   | 108,055 |   |
|                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Loans from banks and others                          |   |                    | — |   |   |   | — |   |   |   | (7,083 | ) |
| Trade payables                                       |   |                    | (31,045 | ) |   |   | — |   |   |   | (20,856 | ) |
| Other payables                                       |   |                    | (2,484  | ) |   |   | (2,469 | ) |   |   | (11,384 | ) |
| Long-term loans from banks and others and debentures |   |                    | (5,494  | ) |   |   | (473,151 | ) |   |   | (59,356 | ) |
| Loans and capital notes from the parent company      |   |                    | — |   |   |   | — |   |   |   | — |   |
| Total financial liabilities                          |   |                    | (39,023 | ) |   |   | (475,620 | ) |   |   | (98,679 | ) |
|                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |
| Total non-derivative financial instruments, net      |   |                    | 201,593 |   |   |   | (475,620 | ) |   |   | 9,376 |   |
| Derivative instruments                               |   |                    | — |   |   |   | — |   |   |   | — |   |
| Net exposure                                         |   |                    | 201,593 |   |   |   | (475,620 | ) |   |   | 9,376 |   |

----

|                       |   | As at December 31, 2016 |    |
|----------------------------|--------|-------------------------|---------|
|                       |   | 10% increase            |    |   | 5% increase |   |   | 5% decrease |   |   | 10% decrease |   |
|                       |   | $ thousands             |    |
| Non-derivative instruments |   |                    |    |   |   |   |   |   |   |   |   |   |
| Shekel/dollar              |   |                    | 6,208   |   |   |   | 3,252 |   |   |   | (3,252 | ) |   |   | (6,208 | ) |
| CPI                        |   |                    | (37,952 | ) |   |   | (19,880 | ) |   |   | 19,880 |   |   |   | 37,952 |   |
| Dollar/other               |   |                    | (44,447 | ) |   |   | (21,044 | ) |   |   | 19,037 |   |   |   | 36,332 |   |
|                       |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                       |   | As at December 31, 2015 |    |
|----------------------------|--------|-------------------------|---------|
|                       |   | 10% increase            |    |   | 5% increase |   |   | 5% decrease |   |   | 10% decrease |   |
|                       |   | $ thousands             |    |
| Non-derivative instruments |   |                    |    |   |   |   |   |   |   |   |   |   |
| Shekel/dollar              |   |                    | 40,718  |   |   |   | 21,596 |   |   |   | (24,415 | ) |   |   | (52,081 | ) |
| CPI                        |   |                    | (56,247 | ) |   |   | (28,123 | ) |   |   | 28,123 |   |   |   | 56,247 |   |
| Dollar/other               |   |                    | 1,017   |   |   |   | 482 |   |   |   | (436 | ) |   |   | (833 | ) |

|  |     (2) | Interest rate risk |
|--|-----------------------------|--------------------|

|                      |   | As at December 31 |       |
|---------------------------|--------|-------------------|------------|
|                      |   | 2016              |       |   | 2015 |   |
|                      |   | Carrying amount   |       |
|                      |   | $ thousands       |       |
| Fixed rate instruments    |   |              |       |   |   |   |
| Financial assets          |   |              | 157,121    |   |   |   | 401,671 |   |
| Financial liabilities     |   |              | (1,530,715 | ) |   |   | (1,431,787 | ) |
|                      |   |              | (1,373,594 | ) |   |   | (1,030,116 | ) |
|                      |   |              |       |   |   |   |   |   |
| Variable rate instruments |   |              |       |   |   |   |   |   |
| Financial assets          |   |              | 20,167     |   |   |   | 29,363 |   |
| Financial liabilities     |   |              | 2,600,799  |   |   |   | (1,132,904 | ) |
|                      |   |              | (2,580,632 | ) |   |   | (1,103,541 | ) |
|                      |   |              |       |   |   |   |   |   |

----

|                      |   | As at December 31, 2016 |    |
|---------------------------|--------|-------------------------|---------|
|                      |   | 100bp increase          |    |   | 100 bp decrease |   |
|                      |   | $ thousands             |    |
| Variable rate instruments |   |                    | (25,806 | ) |   |   | 25,806 |   |
|                      |   | As at December 31, 2015 |    |
|---------------------------|--------|-------------------------|---------|
|                      |   | 100bp increase          |    |   | 100 bp decrease |   |
|                      |   | $ thousands             |    |
| Variable rate instruments |   |                    | (11,035 | ) |   |   | 11,035 |   |

|  | E. | Fair value |
|--|----|------------|

|  | (1) | Fair value compared with carrying value |
|--|-----|-----------------------------------------|

|                                                        |   | As at December 31, 2016 |      |
|-------------------------------------------------------------|--------|-------------------------|-----------|
|                                                        |   | Carrying amount         |      |   | Level 2 |   |
|                                                        |   | $ thousands             |      |
| Non-convertible debentures                                  |   |                    | 867,287   |   |   |   | 947,786 |   |
| Long-term loans from banks and others (excluding interests) |   |                    | 2,116,740 |   |   |   | 2,354,612 |   |
|                                                        |   | As at December 31, 2015 |      |
|-------------------------------------------------------------|--------|-------------------------|-----------|
|                                                        |   | Carrying amount         |      |   | Level 2 |   |
|                                                        |   | $ thousands             |      |
| Non-convertible debentures                                  |   |                    | 671,247   |   |   |   | 764,878 |   |
| Long-term loans from banks and others (excluding interests) |   |                    | 2,003,443 |   |   |   | 2,197,177 |   |

|  | * | The fair value is measured using the technique of discounting the future cash flows with respect to the principal component and the discounted interest using the market interest rate on the measurement date. |
|--|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (2) | Hierarchy of fair value |
|--|-----|-------------------------|

|                                          |   | As at December 31, 2016 |    |   |   | As at December 31, 2015 |   |
|-----------------------------------------------|--------|-------------------------|---------|--------|--------|-------------------------|--------|
|                                          |   | Level 2                 |    |   |   | Level 1                 |   |   | Level 2 |   |   | Level 3 |   |
|                                          |   | $ thousands             |    |   |   | $ thousands             |   |
| Assets                                        |   |                    |    |   |   |                    |   |   |   |   |   |   |   |
| Marketable securities held for trade          |   |                    | — |   |   |                    |   | 6,412 |   |   |   | — |   |   |   | — |   |
| Tower-series 9 options                        |   |                    | — |   |   |                    |   | 12,175 |   |   |   | — |   |   |   | — |   |
| Derivatives not used for accounting hedge (a) |   |                    | 3,173   |   |   |                    |   | — |   |   |   | 2,864 |   |   |   | — |   |
|                                          |   |                    | 3,173   |   |   |                    |   | 18,587 |   |   |   | 2,864 |   |   |   | — |   |
| Liabilities                                   |   |                    |    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Financial guarantee                           |   |                    | — |   |   |                    |   | — |   |   |   | — |   |   |   | 34,263 |   |
| Derivatives used for accounting hedge         |   |                    | 25,264  |   |   |                    |   | — |   |   |   | 44,909 |   |   |   | — |   |
| Derivatives not used for accounting hedge     |   |                    | 2,125   |   |   |                    |   | — |   |   |   | 3,276 |   |   |   | — |   |
| Other financial derivatives                   |   |                    | 29,594  |   |   |                    |   | — |   |   |   | — |   |   |   | — |   |
|                                          |   |                    | 56,983  |   |   |                    |   | — |   |   |   | 48,185 |   |   |   | 34,263 |   |

|  | (3) | Data and measurement of the fair value of financial instruments at Level 2 |
|--|-----|---------------------------------------------------------------------------------|

----

| Type                                     | Valuation technique                                                                                                                                                                                                                                                                           | Significant unobservable data | Inter-relationship between significant unobservable inputs and fair value measurement |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|---------------------------------------------------------------------------------------|
|  Interest rate Swaps                | The Group applies standard valuation techniques such as: discounted cash flows for fixed and variables coupons (estimated with forward curves) using as discounted rates theprojected LIBOR zero coupon curve. The observable inputs are obtained through market information suppliers.  | Not applicable                | Not applicable                                                                        |
|  Foreign Exchange Forwards     | The Group applies standard valuation techniques which include market observable parameters such as the implicit exchange rate calculated with forward points. These variables are obtained through market information suppliers.                                                         | Not applicable                | Not applicable                                                                        |
| Credit from banks, others and debentures | Discounted cash flows with market interest rate                                                                                                                                                                                                                                               | Not applicable                | Not applicable                                                                        |
|                                     |                                                                                                                                                                                                                                                                                          |                          |                                                                                  |
| Marketable Securities held for trade     | DLOM valuation method                                                                                                                                                                                                                                                                         | Not applicable                | Not applicable                                                                        |

|  | (4) | Data and measurement of the fair value of financial instruments at Level 3 |
|--|-----|---------------------------------------------------------------------------------|

----

| A. |  Kenon |
|----|-------------|

|  | (a) | Funding to Qoros |
|--|-----|------------------|

|  | (b) | Qoros introduces a new strategic partner |
|--|-----|------------------------------------------|

| B. | I.C. Power |
|----|------------|

|  | (e) | ICPI acquisition |
|--|-----|------------------|

----

|  | (f) | Update on Kanan |
|--|-----|-----------------|

----

----

----

----

| In thousands of RMB                   |   | Note   |   |   | 2016   |       |   | 2015   |   |
|---------------------------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|
|                                  |   |   |   |   |   |       |   |   |   |
| Assets                                |   |   |   |   |   |       |   |   |   |
| Property, plant and equipment         |   | 14     |   |   |   | 4,219,023  |   |   |   | 4,275,167 |   |
| Intangible assets                     |   | 15     |   |   |   | 4,322,900  |   |   |   | 4,656,474 |   |
| Prepayments for purchase of equipment |   |   |   |   |   | 1,061      |   |   |   | 59,276 |   |
| Lease prepayments                     |   | 16     |   |   |   | 199,303    |   |   |   | 203,716 |   |
| Trade and other receivables           |   | 17     |   |   |   | 91,743     |   |   |   | 92,202 |   |
| Pledged deposits                      |   | 18     |   |   |   | 8,403      |   |   |   | - |   |
| Equity-accounted investee             |   |   |   |   |   | 1,987      |   |   |   | 2,032 |   |
|                                  |   |   |   |   |   |       |   |   |   |   |   |
| Non-current assets                    |   |   |   |   |   | 8,844,420  |   |   |   | 9,288,867 |   |
|                                  |   |   |   |   |   |       |   |   |   |   |   |
| Inventories                           |   | 19     |   |   |   | 322,201    |   |   |   | 244,854 |   |
| VAT recoverable                       |   |   |   |   |   | 807,484    |   |   |   | 832,503 |   |
| Trade and other receivables           |   | 17     |   |   |   | 60,091     |   |   |   | 42,645 |   |
| Prepayments                           |   |   |   |   |   | 13,049     |   |   |   | 36,431 |   |
| Available-for-sale financial assets   |   | 20     |   |   |   | 100,000    |   |   |   | - |   |
| Pledged deposits                      |   | 18     |   |   |   | 36,237     |   |   |   | 113,167 |   |
| Cash and cash equivalents             |   | 21     |   |   |   | 464,759    |   |   |   | 257,270 |   |
|                                  |   |   |   |   |   |       |   |   |   |   |   |
| Current assets                        |   |   |   |   |   | 1,803,821  |   |   |   | 1,526,870 |   |
|                                  |   |   |   |   |   |       |   |   |   |   |   |
| Total assets                          |   |   |   |   |   | 10,648,241 |   |   |   | 10,815,737 |   |

----

| In thousands of RMB          |   | Note   |   |   | 2016   |        |   | 2015   |   |
|------------------------------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|
|                         |   |   |   |   |   |        |   |   |   |
| Equity                       |   |   |   |   |   |        |   |   |   |
| Paid-in capital              |   | 22     |   |   |   | 10,425,480  |   |   |   | 8,331,840 |   |
| Reserves                     |   |   |   |   |   | 53,386      |   |   |   | (44 | ) |
| Accumulated losses           |   |   |   |   |   | (10,032,879 | )      |   |   | (8,135,997 | ) |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Total equity                 |   |   |   |   |   | 445,987     |   |   |   | 195,799 |   |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Liabilities                  |   |   |   |   |   |        |   |   |   |   |   |
| Loans and borrowings         |   | 23     |   |   |   | 4,248,660   |   |   |   | 4,659,718 |   |
| Deferred income              |   | 24     |   |   |   | 412,083     |   |   |   | 169,396 |   |
| Trade and other payables     |   | 25     |   |   |   | 112,488     |   |   |   | - |   |
| Provisions                   |   | 26     |   |   |   | 55,516      |   |   |   | 20,964 |   |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Non-current liabilities      |   |   |   |   |   | 4,828,747   |   |   |   | 4,850,078 |   |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Loans and borrowings         |   | 23     |   |   |   | 2,641,486   |   |   |   | 2,829,470 |   |
| Trade and other payables     |   | 25     |   |   |   | 2,684,669   |   |   |   | 2,615,541 |   |
| Deferred income              |   | 24     |   |   |   | 47,352      |   |   |   | 324,849 |   |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Current liabilities          |   |   |   |   |   | 5,373,507   |   |   |   | 5,769,860 |   |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Total liabilities            |   |   |   |   |   | 10,202,254  |   |   |   | 10,619,938 |   |
|                         |   |   |   |   |   |        |   |   |   |   |   |
| Total equity and liabilities |   |   |   |   |   | 10,648,241  |   |   |   | 10,815,737 |   |

----

| In thousands of RMB                                                                     |   | Note   |   |   | 2016   |       |   | 2015   |   |       | 2014   |   |
|-----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |
| Revenue                                                                                 |   | 7      |   |   |   | 2,511,925  |   |   |   | 1,459,339  |   |   |   | 864,957 |   |
| Cost of sales                                                                           |   |   |   |   |   | (3,008,831 | )      |   |   | (1,713,043 | )      |   |   | (1,019,264 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Gross loss                                                                              |   |   |   |   |   | (496,906   | )      |   |   | (253,704   | )      |   |   | (154,307 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Other income                                                                            |   | 8      |   |   |   | 77,128     |   |   |   | 36,690     |   |   |   | 37,349 |   |
| Research and development expenses                                                       |   | 9      |   |   |   | (204,242   | )      |   |   | (278,008   | )      |   |   | (264,019 | ) |
| Selling, general  and administrative expenses                                      |   | 10     |   |   |   | (762,966   | )      |   |   | (1,559,995 | )      |   |   | (1,518,822 | ) |
| Other expenses                                                                          |   | 11     |   |   |   | (106,577   | )      |   |   | (74,174    | )      |   |   | (62,716 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Operating loss                                                                          |   |   |   |   |   | (1,493,563 | )      |   |   | (2,129,191 | )      |   |   | (1,962,515 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Finance income                                                                          |   | 12(a)  |   |   |   | 16,573     |   |   |   | 13,429     |   |   |   | 25,822 |   |
| Finance costs                                                                           |   | 12(a)  |   |   |   | (419,592   | )      |   |   | (359,126   | )      |   |   | (217,337 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net finance costs                                                                       |   | 12(a)  |   |   |   | (403,019   | )      |   |   | (345,697   | )      |   |   | (191,515 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Share of (loss) / profit of equity- accounted investee, net of nil tax                  |   |   |   |   |   | (45        | )      |   |   | 7          |   |   |   | (123 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss before tax                                                                         |   |   |   |   |   | (1,896,627 | )      |   |   | (2,474,881 | )      |   |   | (2,154,153 | ) |
| Income tax expense                                                                      |   | 13     |   |   |   | (255       | )      |   |   | (575       | )      |   |   | (533 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Loss for the year                                                                       |   |   |   |   |   | (1,896,882 | )      |   |   | (2,475,456 | )      |   |   | (2,154,686 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Other comprehensive income                                                              |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Items that are or may be reclassified to profit or loss                                 |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Foreign operations - foreign currency translation differences                           |   |   |   |   |   | 48         |   |   |   | (18        | )      |   |   | (154 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Other comprehensive income,  net of nil tax                                        |   |   |   |   |   | 48         |   |   |   | (18        | )      |   |   | (154 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Total comprehensive income for the year                                                 |   |   |   |   |   | (1,896,834 | )      |   |   | (2,475,474 | )      |   |   | (2,154,840 | ) |
|                                                                                    |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

----

| In thousands of RMB                                    |   | Note   |   |   | Paid-in capital |   |      | Capital reserve |   |   | Translation reserve |   |   | Accumulated losses |   |   | Total  |   |
|--------------------------------------------------------|--------|--------|--------|--------|-----------------|--------|-----------|-----------------|--------|--------|---------------------|--------|--------|--------------------|--------|--------|--------|--------|
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |
| Balance at 1 January 2014                              |   |   |        |   |            |   | 5,931,840 |            |   |   | 124                 |   |   |               | (19    | )      |   |   | (3,505,855 | ) |   |   | 2,426,090 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Loss for the year                                      |   |   |   |   |            |   | -         |            |   |   | -                   |   |   |               | -      |   |   |   | (2,154,686 | ) |   |   | (2,154,686 | ) |
| Other comprehensive income                             |   |   |   |   |            |   | -         |            |   |   | -                   |   |   |               | (154   | )      |   |   | - |   |   |   | (154 | ) |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                             |   |   |   |   |            |   | -         |            |   |   | -                   |   |   |               | (154   | )      |   |   | (2,154,686 | ) |   |   | (2,154,840 | ) |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Capital injection from investors                       |   |   |   |   |            |   | 600,000   |            |   |   | 23                  |   |   |               | -      |   |   |   | - |   |   |   | 600,023 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Total contributions                                    |   |   |   |   |            |   | 600,000   |            |   |   | 23                  |   |   |               | -      |   |   |   | - |   |   |   | 600,023 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Balance at 31 December 2014                            |   |   |   |   |            |   | 6,531,840 |            |   |   | 147                 |   |   |               | (173   | )      |   |   | (5,660,541 | ) |   |   | 871,273 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Balance at 1 January 2015                              |   |   |   |   |            |   | 6,531,840 |            |   |   | 147                 |   |   |               | (173   | )      |   |   | (5,660,541 | ) |   |   | 871,273 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Loss for the year                                      |   |   |   |   |            |   | -         |            |   |   | -                   |   |   |               | -      |   |   |   | (2,475,456 | ) |   |   | (2,475,456 | ) |
| Other comprehensive income                             |   |   |   |   |            |   | -         |            |   |   | -                   |   |   |               | (18    | )      |   |   | - |   |   |   | (18 | ) |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                             |   |   |   |   |            |   | -         |            |   |   | -                   |   |   |               | (18    | )      |   |   | (2,475,456 | ) |   |   | (2,475,474 | ) |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Conversion of shareholders' loans to capital (Note 22) |   |   |   |   |            |   | 1,800,000 |            |   |   | -                   |   |   |               | -      |   |   |   | - |   |   |   | 1,800,000 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Total contributions                                    |   |   |   |   |            |   | 1,800,000 |            |   |   | -                   |   |   |               | -      |   |   |   | - |   |   |   | 1,800,000 |   |
|                                                   |   |   |   |   |            |   |      |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Balance at 31 December 2015                            |   |   |   |   |            |   | 8,331,840 |            |   |   | 147                 |   |   |               | (191   | )      |   |   | (8,135,997 | ) |   |   | 195,799 |   |

----

| In thousands of RMB                                    |   | Note   |   |   | Paid-in capital |   |       | Capital reserve |   |   | Translation reserve |   |   | Accumulated losses |   |   | Total  |   |
|--------------------------------------------------------|--------|--------|--------|--------|-----------------|--------|------------|-----------------|--------|--------|---------------------|--------|--------|--------------------|--------|--------|--------|--------|
|                                                   |   |   |   |   |            |   |       |            |   |   |                |   |   |               |   |   |   |   |
| Balance at 1 January 2016                              |   |   |        |   |            |   | 8,331,840  |            |   |   | 147                 |   |   |               | (191   | )      |   |   | (8,135,997 | ) |   |   | 195,799 |   |
|                                                   |   |   |   |   |            |   |       |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Loss for the year                                      |   |   |   |   |            |   | -          |            |   |   | -                   |   |   |               | -      |   |   |   | (1,896,882 | ) |   |   | (1,896,882 | ) |
| Other comprehensive income                             |   |   |   |   |            |   | -          |            |   |   | -                   |   |   |               | 48     |   |   |   | - |   |   |   | 48 |   |
|                                                   |   |   |   |   |            |   |       |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                             |   |   |   |   |            |   | -          |            |   |   | -                   |   |   |               | 48     |   |   |   | (1,896,882 | ) |   |   | (1,896,834 | ) |
|                                                   |   |   |   |   |            |   |       |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Conversion of shareholders' loans to capital (Note 22) |   |   |   |   |            |   | 2,093,640  |            |   |   | 53,382              |   |   |               | -      |   |   |   | - |   |   |   | 2,147,022 |   |
|                                                   |   |   |   |   |            |   |       |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Total contributions                                    |   |   |   |   |            |   | 2,093,640  |            |   |   | 53,382              |   |   |               | -      |   |   |   | - |   |   |   | 2,147,022 |   |
|                                                   |   |   |   |   |            |   |       |            |   |   |                |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Balance at 31 December 2016                            |   |   |   |   |            |   | 10,425,480 |            |   |   | 53,529              |   |   |               | (143   | )      |   |   | (10,032,879 | ) |   |   | 445,987 |   |

----

| In thousands of RMB                                        |   | Note   |   |   | 2016   |   |       | 2015   |   |   | 2014       |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                       |   |   |   |   |   |   |       |   |   |   |       |   |
| Cash flows from operating activities                       |   |   |   |   |   |   |       |   |   |   |       |   |
| Loss for the year                                          |   |   |        |   |   |   | (1,896,882 | )      |   |   | (2,475,456 | )      |   |   | (2,154,686 | ) |
| Adjustments for:                                           |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Depreciation                                               |   |   |   |   |   |   | 361,764    |   |   |   | 227,477    |   |   |   | 143,586 |   |
| Amortisation of                                            |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| - intangible assets                                        |   |   |   |   |   |   | 422,492    |   |   |   | 236,223    |   |   |   | 52,315 |   |
| - lease prepayments                                        |   |   |   |   |   |   | 4,413      |   |   |   | 4,412      |   |   |   | 4,413 |   |
| Impairment losses on other receivables                     |   |   |   |   |   |   | 10,859     |   |   |   | 9,493      |   |   |   | - |   |
| Net finance costs                                          |   |   |   |   |   |   | 403,019    |   |   |   | 345,697    |   |   |   | 200,600 |   |
| Tax expense                                                |   |   |   |   |   |   | 255        |   |   |   | 575        |   |   |   | 533 |   |
| Share of profit of equity- accounted, investee, net of tax |   |   |   |   |   |   | 45         |   |   |   | (7         | )      |   |   | - |   |
| Loss on disposal of property, plant, and equipment         |   |   |   |   |   |   | 2,679      |   |   |   | 4,813      |   |   |   | 172 |   |
| Deferred income                                            |   |   |   |   |   |   | (44,496    | )      |   |   | (11,079    | )      |   |   | (10,638 | ) |
|                                                       |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                       |   |   |   |   |   |   | (735,852   | )      |   |   | (1,657,852 | )      |   |   | (1,763,705 | ) |
| Changes in:                                                |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| - inventories                                              |   |   |   |   |   |   | (77,347    | )      |   |   | (47,332    | )      |   |   | (30,306 | ) |
| - trade and other receivables                              |   |   |   |   |   |   | (30,404    | )      |   |   | (322,106   | )      |   |   | (235,444 | ) |
| - VAT recoverable                                          |   |   |   |   |   |   | 25,019     |   |   |   | 170,112    |   |   |   | - |   |
| - prepayments                                              |   |   |   |   |   |   | 23,382     |   |   |   | 118,224    |   |   |   | (51,116 | ) |
| - trade and other payables                                 |   |   |   |   |   |   | 431,754    |   |   |   | 560,630    |   |   |   | 505,094 |   |
| - pledge deposit                                           |   |   |   |   |   |   | 25,576     |   |   |   | -          |   |   |   | - |   |
| - deferred income                                          |   |   |   |   |   |   | 9,686      |   |   |   | 300,000    |   |   |   | - |   |
|                                                       |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash used in operating activities                          |   |   |   |   |   |   | (328,186   | )      |   |   | (878,324   | )      |   |   | (1,575,477 | ) |
|                                                       |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Income taxes paid                                          |   |   |   |   |   |   | (255       | )      |   |   | (575       | )      |   |   | (533 | ) |
|                                                       |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net cash used in operating activities                      |   |   |   |   |   |   | (328,441   | )      |   |   | (878,899   | )      |   |   | (1,576,010 | ) |

----

| In thousands of RMB                                                |   | Note   |   |   | 2016   |   |     | 2015   |   |   | 2014       |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|----------|--------|--------|--------|------------|--------|
|                                                               |   |   |   |   |   |   |     |   |   |   |       |   |
| Cash flows from investing activities                               |   |   |   |   |   |   |     |   |   |   |       |   |
| Interest received                                                  |   |   |        |   |   |   | 19,131   |   |   |   | 15,019     |   |   |   | 15,771 |   |
| Acquisition of available-for- sale financial assets                |   |   |   |   |   |   | (126,000 | )      |   |   | (175,000   | )      |   |   | - |   |
| Proceeds from disposal of available-for-sale financial assets      |   |   |   |   |   |   | 26,000   |   |   |   | 175,000    |   |   |   | 32,000 |   |
| Collection of pledged deposits                                     |   |   |   |   |   |   | 10,519   |   |   |   | 508,093    |   |   |   | 60,393 |   |
| Placement of pledged deposits                                      |   |   |   |   |   |   | (10,519  | )      |   |   | (330,420   | )      |   |   | (190,840 | ) |
| Acquisition of property, plant and equipment and intangible assets |   |   |   |   |   |   | (595,625 | )      |   |   | (1,334,856 | )      |   |   | (1,943,903 | ) |
| Acquisition of equity in associate                                 |   |   |   |   |   |   | -        |   |   |   | -          |   |   |   | (2,025 | ) |
|                                                               |   |   |   |   |   |   |     |   |   |   |       |   |   |   |   |   |
| Net cash used in investing activities                              |   |   |   |   |   |   | (676,494 | )      |   |   | (1,142,164 | )      |   |   | (2,028,604 | ) |

----

| In thousands of RMB                                   |   | Note   |   |   | 2016   |       |   | 2015   |   |       | 2014   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                  |   |   |   |   |   |       |   |   |   |       |   |   |
| Cash flows from financing activities                  |   |   |   |   |   |       |   |   |   |       |   |   |
| Proceeds from borrowings                              |   |        |   |   |   | 2,949,985  |   |   |   | 5,564,733  |   |   |   | 5,442,286 |   |
| Repayment of borrowings                               |   |   |   |   |   | (1,470,344 | )      |   |   | (3,644,550 | )      |   |   | (1,649,847 | ) |
| Interest paid                                         |   |   |   |   |   | (310,863   | )      |   |   | (393,837   | )      |   |   | (325,157 | ) |
| Collection of guarantee deposit                       |   |   |   |   |   | 55,451     |   |   |   | 100,219    |   |   |   | 31,520 |   |
| Placement of guarantee deposit                        |   |   |   |   |   | (12,500    | )      |   |   | (100,219   | )      |   |   | - |   |
|                                                  |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net cash from financing activities                    |   |   |   |   |   | 1,211,729  |   |   |   | 1,526,346  |   |   |   | 3,498,802 |   |
|                                                  |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net increase/ (decrease) in cash and cash equivalents |   |   |   |   |   | 206,794    |   |   |   | (494,717   | )      |   |   | (105,812 | ) |
|                                                  |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents at 1 January                |   |   |   |   |   | 257,270    |   |   |   | 752,088    |   |   |   | 857,900 |   |
|                                                  |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Effect of foreign exchange rate changes               |   |   |   |   |   | 695        |   |   |   | (101       | )      |   |   | - |   |
|                                                  |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash and cash equivalents at 31 December              |   |   |   |   |   | 464,759    |   |   |   | 257,270    |   |   |   | 752,088 |   |

----

| 1 | Reporting entity |
|---|------------------|

| 2 | Basis of preparation |
|---|----------------------|

| (a) | Basis of accounting |
|-----|---------------------|

| (b) | Going concern basis of accounting |
|-----|-----------------------------------|

|   | (i) | Renewal of Short-term Credit Facilities |
|--------|-----|-----------------------------------------|

----

| 2 | Basis of preparation (continued) |
|---|----------------------------------|

| (b) | Going concern basis of accounting (continued) |
|-----|-----------------------------------------------|

|   | (ii) | Shareholders' loans |
|--------|------|---------------------|

|   | (iii) | Improvement in Working Capital Management |
|--------|-------|-------------------------------------------|

| (c) | Basis of measurement |
|-----|----------------------|

| (d) | Functional and presentation currency |
|-----|--------------------------------------|

----

| 3 | Change in accounting policy |
|---|-----------------------------|

| 4 | Significant accounting policies |
|---|---------------------------------|

| (a) | Basis of consolidation |
|-----|------------------------|

| (i) | Subsidiaries |
|-----|--------------|

| (ii) | Interests in equity-accounted investee |
|------|----------------------------------------|

| (iii) | Transaction eliminated on consolidation |
|-------|-----------------------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (b) | Revenue |
|-----|---------|

| (i) | Sale of goods |
|-----|---------------|

|  (ii) | Rental income |
|------------|---------------|

| (iii) | Licencing income |
|-------|------------------|

| (c) | Government grants |
|-----|-------------------|

| (d) | Finance income and finance costs |
|-----|----------------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (e) | Foreign currency |
|-----|------------------|

| (i) | Foreign currency transactions |
|-----|-------------------------------|

| (ii) | Foreign operations |
|------|--------------------|

| (f) | Employee benefits |
|-----|-------------------|

| (i) | Short-term employee benefits |
|-----|------------------------------|

| (ii) | Contributions to defined contribution retirement plans in the PRC |
|------|-------------------------------------------------------------------|

| (iii) | Termination benefits |
|-------|----------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

|  (g) | Income tax |
|-----------|------------|

| (i) | Current tax |
|-----|-------------|

| (ii) | Deferred tax |
|------|--------------|

|   | - | temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | temporary differences related to investments in subsidiaries and equity method investees to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

|  (h) | Inventories |
|-----------|-------------|

| (i) | Property, plant and equipment |
|-----|-------------------------------|

| (i) | Recognition and measurement |
|-----|-----------------------------|

|   | - | the cost of materials and direct labour; |
|--------|---|------------------------------------------|

|   | - | any other costs directly attributable to bringing the assets to a working condition for their intended; |
|--------|---|---------------------------------------------------------------------------------------------------------|

|   | - | when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located; and |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | capitalised borrowing costs. |
|--------|---|------------------------------|

| (ii) | Subsequent costs |
|------|------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (i) | Property, plant and equipment (continued) |
|-----|-------------------------------------------|

| (iii) | Depreciation |
|-------|--------------|

|   | - | Buildings                                                   30 years |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Equipment                                           3 - 20 years |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Leasehold improvements                          3 years |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j) | Intangible assets |
|-----|-------------------|

| (i) | Research and development |
|-----|--------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (j) | Intangible assets (continued) |
|-----|-------------------------------|

| (ii) | Other intangible assets |
|------|-------------------------|

| (iii) | Subsequent expenditure |
|-------|------------------------|

| (iv) | Amortisation |
|------|--------------|

| (k) | Lease prepayments |
|-----|-------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (l) | Financial instruments |
|-----|-----------------------|

| (i) | Non-derivative financial assets and financial liabilities - recognition and derecognition |
|-----|-------------------------------------------------------------------------------------------|

| (ii) | Non-derivative financial assets - measurement |
|------|-----------------------------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (l) | Financial instruments (continued) |
|-----|-----------------------------------|

| (iii) | Non-derivative financial liabilities - measurement |
|-------|----------------------------------------------------|

| (m) | Impairment |
|-----|------------|

| (i) | Non-derivative financial assets |
|-----|---------------------------------|

|   | - | default or delinquency by a debtor; |
|--------|---|-------------------------------------|

|   | - | restructuring of an amount due to the Group on terms that the Group would not consider otherwise; |
|--------|---|---------------------------------------------------------------------------------------------------|

|   | - | indications that a debtor or issuer will enter bankruptcy; |
|--------|---|------------------------------------------------------------|

|   | - | adverse changes in the payment status of borrowers or issuers; |
|--------|---|----------------------------------------------------------------|

|   | - | the disappearance of an active market for a security; |
|--------|---|-------------------------------------------------------|

|   | - | observable date indicating that there is measureable decrease in expected cash flows from a group of financial assets. |
|--------|---|------------------------------------------------------------------------------------------------------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (m) | Impairment (continued) |
|-----|------------------------|

| (i) | Non-derivative financial assets (continued) |
|-----|---------------------------------------------|

| (ii) | Non-financial assets |
|------|----------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (m) | Impairment (continued) |
|-----|------------------------|

| (ii) | Non-financial assets (continued) |
|------|----------------------------------|

| (n) | Warranty costs |
|-----|----------------|

| (o) | Provision and contingent liabilities |
|-----|--------------------------------------|

| (p) | Leases |
|-----|--------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (q) | Related parties |
|-----|-----------------|

|   | (a) | A person, or a close member of that person's family, is related to the Group if that person: |
|--------|-----|----------------------------------------------------------------------------------------------|

|  | (i) | has control or joint control over the Group; |
|--|-----|----------------------------------------------|

|  | (ii) | has significant influence over the Group; or |
|--|------|----------------------------------------------|

|  | (iii) | is a member of the key management personnel of the Group or the Group's parent or ultimate controlling shareholders. |
|--|-------|----------------------------------------------------------------------------------------------------------------------|

|   | (b) | An entity is related to the Group if any of the following conditions applies: |
|--------|-----|-------------------------------------------------------------------------------|

|  | (i) | The entity and the Group are members of the same Group; |
|--|-----|---------------------------------------------------------|

|  | (ii) | One entity is an associate or joint venture of the other entity (or an associate of joint venture of a member of a Group of which the other entity is a member); |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Both entities are joint ventures of the same third party; |
|--|-------|-----------------------------------------------------------|

|  | (iv) | One entity is a joint venture of a third entity and the other entity is an associate of the third entity; |
|--|------|-----------------------------------------------------------------------------------------------------------|

|  | (v) | The entity is a post-employment benefit plan for the benefit of employees of the Group or an entity related to the Group; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | The entity is controlled or jointly controlled by a person identified in (a); |
|--|------|-------------------------------------------------------------------------------|

|  | (vii) | A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (viii) | The entity, or any member of a group of which it is a part, provides key management personnel services to the group or to the group's parent. |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (r) | Standards and interpretation issued but not yet adopted |
|-----|---------------------------------------------------------|

|                                                                                          | Effective for accounting periods beginning on or after |
|-----------------------------------------------------------------------------------------------|--------------------------------------------------------|
|                                                                                          |                                                   |
| Amendments to IAS 7, Disclosure initiative                                                    | 1 January 2017                                         |
|                                                                                          |                                                   |
| Amendments to IAS 12, Income taxes - Recognition of deferred tax assets for unrealised losses | 1 January 2017                                         |
|                                                                                          |                                                   |
| Amendments to IFRS 2, Classification and measurement of share-based payment transactions      | 1 January 2018                                         |
|                                                                                          |                                                   |
| Amendments to IFRS 4, Applying IFRS 9 Financial instruments with IFRS 4 Insurance contracts   | 1 January 2018                                         |
|                                                                                          |                                                   |
| IFRIC 22, Foreign currency transactions and advance consideration                             | 1 January 2018                                         |
|                                                                                          |                                                   |
| IFRS 15, Revenue from contracts with customers                                                | 1 January 2018                                         |
|                                                                                          |                                                   |
| IFRS 9, Financial instruments (2014)                                                          | 1 January 2018                                         |
|                                                                                          |                                                   |
| IFRS 16, Leases                                                                               | 1 January 2019                                         |

----

| 4 | Significant accounting policies (continued) |
|---|---------------------------------------------|

| (r) | Standards and interpretation issued but not yet adopted (continued) |
|-----|---------------------------------------------------------------------|

| 5 | Use of estimates and judgements |
|---|---------------------------------|

| (a) | Judgements |
|-----|------------|

| (i) | Research and development costs |
|-----|--------------------------------|

| (b) | Assumptions and estimation uncertainties |
|-----|------------------------------------------|

| (i) | Depreciation and amortisation |
|-----|-------------------------------|

----

| 5 | Use of estimates and judgements (continued) |
|---|---------------------------------------------|

| (ii) | Net realisable value of inventories |
|------|-------------------------------------|

| (iii) | Impairment for non-current assets |
|-------|-----------------------------------|

----

| 6 | Segment reporting |
|---|-------------------|

| 7 | Revenue |
|---|---------|

| In thousands of RMB  |   | 2016   |      |   | 2015   |   |      | 2014   |   |
|----------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                 |   |   |      |   |   |   |      |   |   |
| Sales of goods       |   |   | 2,495,479 |   |   |   | 1,435,136 |   |   |   | 822,630 |   |
| Rendering of service |   |   |      |   |   |   |      |   |   |   |   |   |
| -Rental income       |   |   | 9,150     |   |   |   | 12,009    |   |   |   | 41,747 |   |
| -Others              |   |   | 7,296     |   |   |   | 12,194    |   |   |   | 580 |   |
|                 |   |   |      |   |   |   |      |   |   |   |   |   |
| Total                |   |   | 2,511,925 |   |   |   | 1,459,339 |   |   |   | 864,957 |   |

| 8 | Other income |
|---|--------------|

| In thousands of RMB        |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                       |   |   |   |   |   |   |   |   |   |
| Government grants          |   |   | 35,796 |   |   |   | 33,024 |   |   |   | 37,162 |   |
| Licencing income (Note 24) |   |   | 30,000 |   |   |   | -      |   |   |   | - |   |
| Others                     |   |   | 11,332 |   |   |   | 3,666  |   |   |   | 187 |   |
|                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                      |   |   | 77,128 |   |   |   | 36,690 |   |   |   | 37,349 |   |

----

| 9 | Research and development expenses |
|---|-----------------------------------|

| In thousands of RMB |   | 2016   |    |   | 2015   |   |    | 2014   |   |
|---------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                |   |   |    |   |   |   |    |   |   |
| CF1X                |   |   | 42,700  |   |   |   | 169,432 |   |   |   | 8,964 |   |
| CF11 and CF11K      |   |   | 28,741  |   |   |   | 16,355  |   |   |   | 123,721 |   |
| CF14 and CF14K      |   |   | 30,390  |   |   |   | 43,296  |   |   |   | 30,490 |   |
| CF16 and CF16BM     |   |   | 51,983  |   |   |   | 5,415   |   |   |   | 74,776 |   |
| Diesel              |   |   | -       |   |   |   | -       |   |   |   | 20,419 |   |
| TGDI                |   |   | 23,794  |   |   |   | 11,777  |   |   |   | 5,649 |   |
| Qloud               |   |   | 5,289   |   |   |   | 31,733  |   |   |   | - |   |
| BJ6                 |   |   | 6,588   |   |   |   | -       |   |   |   | - |   |
| BEV                 |   |   | 9,978   |   |   |   | -       |   |   |   | - |   |
| BF16                |   |   | 2,697   |   |   |   | -       |   |   |   | - |   |
| Others              |   |   | 2,082   |   |   |   | -       |   |   |   | - |   |
|                |   |   |    |   |   |   |    |   |   |   |   |   |
| Total               |   |   | 204,242 |   |   |   | 278,008 |   |   |   | 264,019 |   |

| 10 | Selling, general and administrative expenses |
|----|----------------------------------------------|

| In thousands of RMB                  |   | 2016   |    |   | 2015   |   |      | 2014   |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|-----------|--------|--------|
|                                 |   |   |    |   |   |   |      |   |   |
| Advertising, marketing and promotion |   |   | 170,288 |   |   |   | 562,476   |   |   |   | 574,458 |   |
| Personnel expenses                   |   |   | 166,730 |   |   |   | 322,293   |   |   |   | 312,901 |   |
| Depreciation and amortisation        |   |   | 130,029 |   |   |   | 205,144   |   |   |   | 74,221 |   |
| Office expenses                      |   |   | 94,636  |   |   |   | 125,469   |   |   |   | 123,869 |   |
| Consulting fees                      |   |   | 61,575  |   |   |   | 141,728   |   |   |   | 277,148 |   |
| Warranty                             |   |   | 54,236  |   |   |   | 25,687    |   |   |   | 12,978 |   |
| Logistics                            |   |   | 33,530  |   |   |   | 25,856    |   |   |   | 12,386 |   |
| Rental expenses                      |   |   | 29,796  |   |   |   | 30,903    |   |   |   | 46,403 |   |
| Others                               |   |   | 22,146  |   |   |   | 120,439   |   |   |   | 84,458 |   |
|                                 |   |   |    |   |   |   |      |   |   |   |   |   |
| Total                                |   |   | 762,966 |   |   |   | 1,559,995 |   |   |   | 1,518,822 |   |

----

| 11 | Other expenses |
|----|----------------|

| In thousands of RMB                                             |   | 2016   |    |   | 2015   |   |   | 2014   |   |
|-----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                            |   |   |    |   |   |   |   |   |   |
| Impairment loss on debts                                        |   |   | 10,859  |   |   |   | 9,493  |   |   |   | - |   |
| Price adjustment on purchase of material and parts (Note 30(c)) |   |   | 72,953  |   |   |   | 42,877 |   |   |   | - |   |
| Other taxes and surcharges                                      |   |   | 13,106  |   |   |   | 8,066  |   |   |   | 46,386 |   |
| Others                                                          |   |   | 9,659   |   |   |   | 13,738 |   |   |   | 16,330 |   |
|                                                            |   |   |    |   |   |   |   |   |   |   |   |   |
| Total                                                           |   |   | 106,577 |   |   |   | 74,174 |   |   |   | 62,716 |   |

| 12 | Loss before income tax |
|----|------------------------|

| In thousands of RMB                                                                           |   | 2016   |     |   | 2015   |   |     | 2014   |   |
|-----------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                          |   |   |     |   |   |   |     |   |   |
| Interest income from available-for-sale financial assets                                      |   |   | 2        |   |   |   | 39       |   |   |   | 720 |   |
| Interest income from bank deposits                                                            |   |   | 16,571   |   |   |   | 13,390   |   |   |   | 16,583 |   |
| Net foreign exchange gain                                                                     |   |   | -        |   |   |   | -        |   |   |   | 8,519 |   |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Finance income                                                                                |   |   | 16,573   |   |   |   | 13,429   |   |   |   | 25,822 |   |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Interest expense                                                                              |   |   | (440,476 | )      |   |   | (386,376 | )      |   |   | (301,908 | ) |
| Less: interest expenses capitalised into property, plant and equipment, and development costs |   |   | 24,603   |   |   |   | 92,975   |   |   |   | 84,571 |   |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Net foreign exchange loss                                                                     |   |   | (3,719   | )      |   |   | (65,725  | )      |   |   | - |   |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Finance costs                                                                                 |   |   | (419,592 | )      |   |   | (359,126 | )      |   |   | (217,337 | ) |
|                                                                                          |   |   |     |   |   |   |     |   |   |   |   |   |
| Net finance costs                                                                             |   |   | (403,019 | )      |   |   | (345,697 | )      |   |   | (191,515 | ) |

----

| 12 | Loss before income tax (continued) |
|----|------------------------------------|

| (b)           Personnel expenses: |   |   |   |   |
|-------------------------------------------------------------------------------------|--------|--------|--------|--------|
| In thousands of RMB                                   |   | 2016   |     |   | 2015   |   |     | 2014   |   |
|-------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                  |   |   |     |   |   |   |     |   |   |
| Contributions to defined contribution retirement plan |   |   | (30,954  | )      |   |   | (34,928  | )      |   |   | (36,710 | ) |
| Salaries, wages and other benefits                    |   |   | (253,148 | )      |   |   | (448,836 | )      |   |   | (490,120 | ) |
|                                                  |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                  |   |   | (284,102 | )      |   |   | (483,764 | )      |   |   | (526,830 | ) |

| (c)           Other items: |   |   |   |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|
| Amortisation                    |   |   |     |   |   |   |     |   |   |
|---------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| - lease prepayment              |   |   | (4,413   | )      |   |   | (4,412   | )      |   |   | (4,413 | ) |
| - intangible assets             |   |   | (422,492 | )      |   |   | (236,223 | )      |   |   | (52,315 | ) |
|                            |   |   |     |   |   |   |     |   |   |   |   |   |
|                            |   |   | (426,905 | )      |   |   | (240,635 | )      |   |   | (56,728 | ) |
| Depreciation                    |   |   |     |   |   |   |     |   |   |   |   |   |
| - property, plant and equipment |   |   | (361,764 | )      |   |   | (227,477 | )      |   |   | (143,586 | ) |
|                            |   |   |     |   |   |   |     |   |   |   |   |   |
| Operating lease charges         |   |   |     |   |   |   |     |   |   |   |   |   |
| - hire of office rentals        |   |   | (24,026  | )      |   |   | (28,579  | )      |   |   | (53,340 | ) |
| - hire of cars                  |   |   | (2,516   | )      |   |   | (3,515   | )      |   |   | (4,714 | ) |
|                            |   |   |     |   |   |   |     |   |   |   |   |   |
|                            |   |   | (26,542  | )      |   |   | (32,094  | )      |   |   | (58,054 | ) |

----

| 13 | Income taxes |
|----|--------------|

| (a)           Amounts recognised in profit or loss |   |   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|
| In thousands of RMB                      |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                     |   |   |   |   |   |   |   |   |   |
| Current tax expense - Germany Income Tax |   |   |   |   |   |   |   |
|                                     |   |   |   |   |   |   |   |   |   |
| Current year                             |   |   | 255    |   |   |   | 575    |   |   |   | 533 |   |

| (b)           Reconciliation of effective tax rate |   |   |   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| In thousands of RMB                                                     |   | 2016   |       |   | 2015   |   |       | 2014   |   |
|-------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                    |   |   |       |   |   |   |       |   |   |
| Loss before tax                                                         |   |   | (1,896,627 | )      |   |   | (2,474,881 | )      |   |   | (2,154,153 | ) |
| Income tax credit at the applicable PRC income tax rate of 25%          |   |   | (474,157   | )      |   |   | (618,720   | )      |   |   | (538,538 | ) |
| Effect of tax rate differential                                         |   |   | 99         |   |   |   | 155        |   |   |   | 91 |   |
| Effect of tax losses not recognised                                     |   |   | 539,836    |   |   |   | 521,005    |   |   |   | 448,814 |   |
| Effect of other temporary differences not recognised                    |   |   | -          |   |   |   | 98,021     |   |   |   | 89,857 |   |
| Recognition of previously unrecognised deductible temporary differences |   |   | (65,590    | )      |   |   | -          |   |   |   | - |   |
| Non-deductible expenses                                                 |   |   | 67         |   |   |   | 114        |   |   |   | 309 |   |
|                                                                    |   |   |       |   |   |   |       |   |   |   |   |   |
| Income tax expense                                                      |   |   | 255        |   |   |   | 575        |   |   |   | 533 |   |

----

| 13 | Income taxes (continued) |
|----|--------------------------|

| (c) | Unrecognised deferred tax assets |
|-----|----------------------------------|

| In thousands of RMB         |   | *31 December*       |      |
|-----------------------------|--------|---------------------------------------------------|-----------|
|                        |   | 2016                                              |      |   | 2015 |   |   | 2014 |   |
|                        |   |                                              |      |   |   |   |   |   |   |
| Tax losses                  |   |                                              | 7,506,001 |   |   |   | 5,457,817 |   |   |   | 3,373,796 |   |
| Other temporary differences |   |                                              | 2,250,829 |   |   |   | 2,513,187 |   |   |   | 2,121,104 |   |
|                        |   |                                              |      |   |   |   |   |   |   |   |   |   |
| Total                       |   |                                              | 9,756,830 |   |   |   | 7,971,004 |   |   |   | 5,494,900 |   |

| In thousands of RMB |   | 31 December 2016 |      |
|---------------------|--------|------------------|-----------|
|                |   |             |      |
| 2019                |   |             | 2,476,346 |   |
| 2020                |   |             | 2,474,084 |   |
| 2021                |   |             | 2,555,571 |   |
|                |   |             |      |   |
|                |   |             | 7,506,001 |   |

----

| 14 | Property, plant and equipment |
|----|-------------------------------|

| In thousands of RMB                  |   | Leasehold improvements |    |   | Equipment |   |      | Building |   |   | Construction in progress |   |   | Total  |       |
|--------------------------------------|--------|------------------------|---------|--------|-----------|--------|-----------|----------|--------|--------|--------------------------|--------|--------|--------|------------|
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |
| Cost                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |
| Balance at 1 January 2015            |   |                   | 22,990  |   |      |   | 2,501,840 |     |   |   | 1,283,280                |   |   |   | 439,995    |   |   |   | 4,248,105 |   |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Additions                            |   |                   | 18,421  |   |      |   | 2,765     |     |   |   | -                        |   |   |   | 530,405    |   |   |   | 551,591 |   |
| Transfer                             |   |                   | -       |   |      |   | 13,901    |     |   |   | (843                     | )      |   |   | (13,058    | ) |   |   | - |   |
| Adjustment                           |   |                   | -       |   |      |   | (47,788   | )        |   |   | (36,294                  | )      |   |   | -          |   |   |   | (84,082 | ) |
| Disposal                             |   |                   | -       |   |      |   | (5,202    | )        |   |   | -                        |   |   |   | -          |   |   |   | (5,202 | ) |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2015          |   |                   | 41,411  |   |      |   | 2,465,516 |     |   |   | 1,246,143                |   |   |   | 957,342    |   |   |   | 4,710,412 |   |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Additions                            |   |                   | 45,77   |   |      |   | 3,851     |     |   |   | 895                      |   |   |   | 335,965    |   |   |   | 345,288 |   |
| Transfer                             |   |                   | -       |   |      |   | 1,189,159 |     |   |   | 43,443                   |   |   |   | (1,269,669 | ) |   |   | (37,067 | ) |
| Disposal                             |   |                   | (332    | )      |      |   | (4,401    | )        |   |   | -                        |   |   |   | -          |   |   |   | (4,733 | ) |
| Effect of movement in exchange rates |   |                   | 6       |   |      |   | 103       |     |   |   | -                        |   |   |   | -          |   |   |   | 109 |   |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2016          |   |                   | 45,662  |   |      |   | 3,654,228 |     |   |   | 1,290,481                |   |   |   | 23,638     |   |   |   | 5,014,009 |   |
|                                 |   |                   |         |   |      |   |           |     |   |   |                     |   |   |   |            |   |   |   |  |   |
| Depreciation                         |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 1 January 2015            |   |                   | (20,007 | )      |      |   | (143,052  | )        |   |   | (45,098                  | )      |   |   | -          |   |   |   | (208,157 | ) |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Depreciation for the year            |   |                   | (6,435  | )      |      |   | (180,009  | )        |   |   | (41,033                  | )      |   |   | -          |   |   |   | (227,477 | ) |
| Written off on disposal              |   |                   | -       |   |      |   | 389       |     |   |   | -                        |   |   |   | -          |   |   |   | 389 |   |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2015          |   |                   | (26,442 | )      |      |   | (322,672  | )        |   |   | (86,131                  | )      |   |   | -          |   |   |   | (435,245 | ) |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Depreciation for the year            |   |                   | (6,339  | )      |      |   | (304,455  | )        |   |   | (50,970                  | )      |   |   | -          |   |   |   | (361,764 | ) |
| Written off on disposal              |   |                   | 332     |   |      |   | 1,722     |     |   |   | -                        |   |   |   | -          |   |   |   | 2,054 |   |
| Effect of movement in exchange rates |   |                   | (1      | )      |      |   | (30       | )        |   |   | -                        |   |   |   | -          |   |   |   | (31 | ) |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2016          |   |                   | (32,450 | )      |      |   | (625,435  | )        |   |   | (137,101                 | )      |   |   | -          |   |   |   | (794,986 | ) |
|                                 |   |                   |         |   |      |   |           |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Carrying amount                      |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2014          |   |                   | 2,983   |   |      |   | 2,358,788 |     |   |   | 1,238,182                |   |   |   | 439,995    |   |   |   | 4,039,948 |   |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2015          |   |                   | 14,969  |   |      |   | 2,142,844 |     |   |   | 1,160,012                |   |   |   | 957,342    |   |   |   | 4,275,167 |   |
|                                 |   |                   |    |   |      |   |      |     |   |   |                     |   |   |   |       |   |   |   |   |   |
| Balance at 31 December 2016          |   |                   | 13,212  |   |      |   | 3,028,793 |     |   |   | 1,153,380                |   |   |   | 23,638     |   |   |   | 4,219,023 |   |

----

| 14 | Property, plant and equipment (continued) |
|----|-------------------------------------------|

----

| 15 | Intangible assets |
|----|-------------------|

| In thousands of RMB                  |   | Software |     |   | Development costs |   |      | Total  |   |
|--------------------------------------|--------|----------|----------|--------|-------------------|--------|-----------|--------|--------|
|                                 |   |     |     |   |              |   |      |   |   |
| Cost                                 |   |     |     |   |              |   |      |   |   |
| Balance at 1 January 2015            |   |     | 433,193  |   |              |   | 4,269,957 |   |   |   | 4,703,150 |   |
| Additions                            |   |     | 1,659    |   |              |   | 252,674   |   |   |   | 254,333 |   |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2015          |   |     | 434,852  |   |              |   | 4,522,631 |   |   |   | 4,957,483 |   |
| Additions                            |   |     | 493      |   |              |   | 221,926   |   |   |   | 222,419 |   |
| Transfer                             |   |     | 37,067   |   |              |   | -         |   |   |   | 37,067 |   |
| Adjustment                           |   |     | -        |   |              |   | (170,607  | )      |   |   | (170,607 | ) |
| Effect of movement in exchange rates |   |     | 47       |   |              |   | -         |   |   |   | 47 |   |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2016          |   |     | 472,459  |   |              |   | 4,573,950 |   |   |   | 5,046,409 |   |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Amortisation                         |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 1 January 2015            |   |     | (40,497  | )      |              |   | (24,289   | )      |   |   | (64,786 | ) |
| Amortisation for the year            |   |     | (43,960  | )      |              |   | (192,263  | )      |   |   | (236,223 | ) |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2015          |   |     | (84,457  | )      |              |   | (216,552  | )      |   |   | (301,009 | ) |
| Amortisation for the year            |   |     | (48,820  | )      |              |   | (373,672  | )      |   |   | (422,492 | ) |
| Effect of movement in exchange rates |   |     | (8       | )      |              |   | -         |   |   |   | (8 | ) |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2016          |   |     | (133,285 | )      |              |   | (590,224  | )      |   |   | (723,509 | ) |
|                                 |   |     |          |   |              |   |           |   |   |   |  |   |
| Carrying amount                      |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2014          |   |     | 392,696  |   |              |   | 4,245,668 |   |   |   | 4,638,364 |   |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2015          |   |     | 350,395  |   |              |   | 4,306,079 |   |   |   | 4,656,474 |   |
|                                 |   |     |     |   |              |   |      |   |   |   |   |   |
| Balance at 31 December 2016          |   |     | 339,174  |   |              |   | 3,983,726 |   |   |   | 4,322,900 |   |

----

| 16 | Lease prepayments |
|----|-------------------|

| In thousands of RMB                  |   | 2016   |    |   | 2015   |   |
|--------------------------------------|--------|--------|---------|--------|--------|--------|
|                                 |   |   |    |   |   |   |
| Cost                                 |   |   |    |   |   |   |
| Balance at 1 January and 31 December |   |   | 220,631 |   |   |   | 220,631 |   |
|                                 |   |   |    |   |   |   |   |   |
| Amortisation                         |   |   |    |   |   |   |   |   |
| Balance at 1 January                 |   |   | (16,915 | )      |   |   | (12,503 | ) |
| Amortisation for the year            |   |   | (4,413  | )      |   |   | (4,412 | ) |
|                                 |   |   |    |   |   |   |   |   |
| Balance at 31 December               |   |   | (21,328 | )      |   |   | (16,915 | ) |
|                                 |   |   |    |   |   |   |   |   |
| Carrying amount                      |   |   |    |   |   |   |   |   |
| Balance at 1 January                 |   |   | 203,716 |   |   |   | 208,128 |   |
|                                 |   |   |    |   |   |   |   |   |
| Balance at 31 December               |   |   | 199,303 |   |   |   | 203,716 |   |

----

| 17 | Trade and other receivables |
|----|-----------------------------|

| (a) | Trade and other receivables in the consolidated statement of financial position comprised: |
|-----|--------------------------------------------------------------------------------------------|

|                                 |   | 31 December |   |
|--------------------------------------|--------|-------------|--------|
| In thousands of RMB                  |   | Note        |   |   | 2016 |   |   | 2015 |   |
|                                 |   |        |   |   |   |   |   |   |   |
| Trade receivables                    |   |             |   |   |   | 20,168 |   |   |   | 5,257 |   |
| Bills receivables                    |   |        |   |   |   | 3,500 |   |   |   | - |   |
| Deposits                             |   |        |   |   |   | 76,805 |   |   |   | 74,623 |   |
| Deferred expenses                    |   |        |   |   |   | 26,275 |   |   |   | 31,052 |   |
| Receivables due from employees       |   |        |   |   |   | 14,813 |   |   |   | 15,080 |   |
| Receivables due from related parties |   | 30(c)       |   |   |   | 16,284 |   |   |   | 8,638 |   |
| Others                               |   |        |   |   |   | 14,737 |   |   |   | 10,086 |   |
|                                 |   |        |   |   |   |   |   |   |   |   |   |
|                                 |   |        |   |   |   | 172,582 |   |   |   | 144,736 |   |
|                                 |   |        |   |   |   |   |   |   |   |   |   |
| Less: allowance for doubtful debts   |   |        |   |   |   | (20,748 | ) |   |   | (9,889 | ) |
|                                 |   |        |   |   |   |   |   |   |   |   |   |
|                                 |   |        |   |   |   | 151,834 |   |   |   | 134,847 |   |
|                                 |   |        |   |   |   |   |   |   |   |   |   |
| Non-current                          |   |        |   |   |   | 91,743 |   |   |   | 92,202 |   |
| Current                              |   |        |   |   |   | 60,091 |   |   |   | 42,645 |   |
|                                 |   |        |   |   |   |   |   |   |   |   |   |
|                                 |   |        |   |   |   | 151,834 |   |   |   | 134,847 |   |

| (b) | Impairment of trade and other receivables |
|-----|-------------------------------------------|

|                       |   | *31 December* |    |
|----------------------------|--------|---------------|---------|
| In thousands of RMB        |   | 2016          |    |   | 2015 |   |
|                       |   |          |    |   |   |   |
| Balance at 1 January       |   |          | (9,889  | ) |   |   | (396 | ) |
| Impairment loss recognised |   |          | (10,859 | ) |   |   | (9,493 | ) |
|                       |   |          |    |   |   |   |   |   |
| Balance at 31 December     |   |          | (20,748 | ) |   |   | (9,889 | ) |

----

| 18 | Pledged deposits |
|----|------------------|

|                |   | *31 December* |   |
|---------------------|--------|---------------|--------|
| In thousands of RMB |   | 2016          |   |   | 2015 |   |
|                |   |          |   |   |   |   |
| Non-current         |   |          | 8,403  |   |   |   | - |   |
| Current             |   |          | 36,237 |   |   |   | 113,167 |   |
|                |   |          |   |   |   |   |   |   |
|                |   |          | 44,640 |   |   |   | 113,167 |   |

| 19 | Inventories |
|----|-------------|

| (a) | Inventory in the consolidated statement of financial position comprised: |
|-----|--------------------------------------------------------------------------|

|                          |   | *31 December* |    |
|-------------------------------|--------|---------------|---------|
| In thousands of RMB           |   | 2016          |    |   | 2015 |   |
|                          |   |          |    |   |   |   |
| Raw materials and consumables |   |          | 81,723  |   |   |   | 60,181 |   |
| Work in progress              |   |          | 2,861   |   |   |   | 5,482 |   |
| Finished goods                |   |          | 237,617 |   |   |   | 179,191 |   |
|                          |   |          |    |   |   |   |   |   |
| Total                         |   |          | 322,201 |   |   |   | 244,854 |   |

| (b) | The analysis of the amount of inventories recognised as an expense and included in profit or loss as follow: |
|-----|--------------------------------------------------------------------------------------------------------------|

|                                |   | *31 December* |      |
|-------------------------------------|--------|---------------|-----------|
| In thousands of RMB                 |   | 2016          |      |   | 2015 |   |
|                                |   |          |      |   |   |   |
| Carrying amount of inventories sold |   |          | 2,999,396 |   |   |   | 1,704,515 |   |
|                                |   |          |      |   |   |   |   |   |
| Total                               |   |          | 2,999,396 |   |   |   | 1,704,515 |   |

| 20 | Available-for-sale financial assets |
|----|-------------------------------------|

----

| 21 | Cash and cash equivalents |
|----|---------------------------|

| (a) | Cash and cash equivalents comprise: |
|-----|-------------------------------------|

|                                            |   | *31 December*    |    |
|-------------------------------------------------|--------|---------------------------------|---------|
| In thousands of RMB                             |   | 2016                            |    |   | 2015 |   |
|                                            |   |                            |    |   |   |   |
| Bank deposits with maturity of 3 months or less |   |                            | -       |   |   |   | 1,528 |   |
| Cash at bank                                    |   |                            | 464,759 |   |   |   | 255,742 |   |
|                                            |   |                            |    |   |   |   |   |   |
|                                            |   |                            | 464,759 |   |   |   | 257,270 |   |

| (b) |  Investing and financing activities not requiring the use of cash or cash equivalents: |
|-----|---------------------------------------------------------------------------------------------|

| In thousands of RMB             |   | 2016   |      |   | 2015   |   |
|---------------------------------|--------|--------|-----------|--------|--------|--------|
|                            |   |   |      |   |   |   |
| Conversion of debt into capital |   |   | 2,147,022 |   |   |   | 1,800,000 |   |

| 22 | Paid-in capital |
|----|-----------------|

|                |   | *31 December* |       |
|---------------------|--------|---------------|------------|
| In thousands of RMB |   | 2016          |       |   | 2015 |   |
|                |   |          |       |   |   |   |
| Wuhu Chery          |   |          | 5,212,740  |   |   |   | 4,165,920 |   |
| Quantum (2007) LLC. |   |          | 5,212,740  |   |   |   | 4,165,920 |   |
|                |   |          |       |   |   |   |   |   |
|                |   |          | 10,425,480 |   |   |   | 8,331,840 |   |

----

| 23 | Loans and borrowings |
|----|----------------------|

|            |   |   |   |   | *31 December* |      |
|-----------------|--------|--------|--------|--------|---------------|-----------|
|            |   | Note   |   |   | 2016          |      |   | 2015 |   |
|            |   |   |   |   |          |      |   |   |   |
| Denominated in: |   |   |   |   |          |      |   |   |   |
| RMB             |   |        |   |   |          | 6,890,146 |   |   |   | 6,595,866 |   |
| USD             |   |   |   |   |          | -         |   |   |   | 893,322 |   |
|            |   |   |   |   |          |      |   |   |   |   |   |
|            |   |   |   |   |          | 6,890,146 |   |   |   | 7,489,188 |   |
|            |   |   |   |   |          |      |   |   |   |   |   |
| Non-current     |   | 23(a)  |   |   |          | 4,248,660 |   |   |   | 4,659,718 |   |
| Current         |   | 23(b)  |   |   |          | 2,641,486 |   |   |   | 2,829,470 |   |
|            |   |   |   |   |          |      |   |   |   |   |   |
|            |   |   |   |   |          | 6,890,146 |   |   |   | 7,489,188 |   |

| (a) | Non-current loan and borrowings |
|-----|---------------------------------|

| In thousands of RMB |   | Note   |   |   | Bankingfacility |      |   | Accumulateddrawdown |   |      | Accumulatedrepayment |   |   | Reclassifiedto current |   |   | Balance as at 31 December 2016 |     |
|---------------------|--------|--------|--------|--------|-----------------|-----------|--------|---------------------|--------|-----------|----------------------|--------|--------|------------------------|--------|--------|--------------------------------|----------|
|                |   |        |   |   |            |      |   |                |   |      |                 |   |   |                   |   |   |                           |     |
| Consortium loan I   |   | (i)    |   |   |            | 3,000,000 |   |                |   | 2,906,000 |                 |   |   | (148,188               | )      |   |                           | (387,486 | ) |   |   | 2,370,326 |   |
| Consortium loan II  |   | (ii)   |   |   |            | 1,200,000 |   |                |   | 1,200,000 |                 |   |   | -                      |   |   |                           | (30,000  | ) |   |   | 1,170,000 |   |
| Consortium loan III |   | (iii)  |   |   |            | 700,000   |   |                |   | 700,000   |                 |   |   | -                      |   |   |                           | -        |   |   |   | 700,000 |   |
| PingAn              |   | (iv)   |   |   |            | 62,500    |   |                |   | 62,500    |                 |   |   | (4,166                 | )      |   |                           | (50,000  | ) |   |   | 8,334 |   |
|                |   |   |   |   |            |      |   |                |   |      |                 |   |   |                   |   |   |                           |     |   |   |   |   |   |
| Total               |   |   |   |   |            | 4,962,500 |   |                |   | 4,868,500 |                 |   |   | (152,354               | )      |   |                           | (467,486 | ) |   |   | 4,248,660 |   |

|   | (i) | Consortium loan I: On 23 July 2012, the Company entered into a consortium financing arrangement with a Group of banks. Under the arrangement, the Company can draw down loans in either RMB or USD, up to an aggregate maximum principal amount of RMB 3 billion. The RMB loan bears the 5-year interest rate quoted by the People's Bank of China from time to time and the USD loan bears interest rate of LIBOR+4.8% per annum. The repayment schedule of loans is based on the instalments schedule as set out in the agreement within 10 years from the first draw down date. The arrangement is secured by the Company's land use right, equipment, properties and construction in progress and is guaranteed by Wuhu Chery and Changshu Port Development and Construction Co., Ltd ("CPDC") respectively. Each party provides guarantee to an aggregate principal amount of no more than RMB 1.5 billion or its equivalent. The guarantee from Wuhu Chery and CPDC are several but not joint. In connection with CPDC's guarantee, the Company made a guarantee deposit of RMB 100 million to CPDC and Wuhu Chery also entered into an agreement to provide a counter-guarantee to CPDC in September 2012. The guarantee deposit was initially recorded in trade and other receivables at fair value and subsequently measured at amortised cost.  The difference between RMB100 million and fair value on the initial date was deferred and amortised as interest expenses over the loan period using effective interest rate as the guarantee deposit is directly attributable to the loan. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 23 | Loans and borrowings (continued) |
|----|----------------------------------|

|   | (ii) | Consortium loan II: On 31 July 2014, the Company entered into an additional consortium financing arrangement with a bank consortium. Under this arrangement, the Company can draw down loans in either RMB or USD, up to an aggregate maximum principal amount of RMB 1.2 billion.  The RMB loan bears the 5-year interest rate quoted by the People's Bank of China with 10% mark-up and the USD loan bears interest rate of LIBOR+5% per annum.  The repayment schedule of loans is based on the instalment schedule as set out in the agreement within 10 years from the first draw down date. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Consortium loan III: On 12 May 2015, the Company entered into a financing arrangement with a bank consortium.  Under the arrangement, the Company can draw down loans in either RMB or USD, up to an aggregate maximum principal amount of RMB 700 million. The loan agreement covers a period of 102 months starting from 15 May 2015, secured by Chery Automobile Co., Ltd ("Chery") and pledged by the Company's 90 vehicle patents with an appraisal value totalling no less than RMB 3.1 billion.  The RMB loan bears the 5-year interest rate quoted by the People's Bank of China with 10% mark-up and the USD loan bears interest of LIBOR+3.5% per annum.  Kenon Holdings Ltd. ("Kenon") provided a back-to-back guarantee to Chery for RMB 350 million, plus up to RMB 60 million of related fees, in connection with the Company's drawdown of RMB 700 million. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 23 | Loans and borrowings (continued) |
|----|----------------------------------|

|   | (iv) | Ping An: On 30 November 2016, the Company entered into a 15-month financing arrangement with Ping An International Financing and Leasing Co., Ltd through a designated  bank loan arrangement with Bank of Ningbo. The Company drew down the maximum principal amount of RMB 62.5 million with an interest rate of 6.70%. The Company provided guarantee deposit of RMB 12.5 million with Bank of Ningbo. Under this arrangement, the Company will make a monthly repayment on principal of RMB 4.2 million for the 15-month period ending 28 February 2017. The current portion of the loan is RMB 50 million as at 31 December 2016. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Current loan and borrowings |
|-----|-----------------------------|

| 24 | Deferred income |
|----|-----------------|

| In thousands of RMB    |   | 2016   |    |   | 2015   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
|                   |   |   |    |   |   |   |
| Balance at 1 January   |   |   | 494,245 |   |   |   | 205,324 |   |
| Addition for the year  |   |   | 9,686   |   |   |   | 300,000 |   |
| Income for the year    |   |   | (44,496 | )      |   |   | (11,079 | ) |
|                   |   |   |    |   |   |   |   |   |
| Balance at 31 December |   |   | 459,435 |   |   |   | 494,245 |   |
|                   |   |   |    |   |   |   |   |   |
| Non-current            |   |   | 412,083 |   |   |   | 169,396 |   |
| Current                |   |   | 47,352  |   |   |   | 324,849 |   |
|                   |   |   |    |   |   |   |   |   |
|                   |   |   | 459,435 |   |   |   | 494,245 |   |

----

| 25 | Trade and other payables |
|----|--------------------------|

|                                        |   | *At 31 December* |      |
|---------------------------------------------|--------|------------------|-----------|
| In thousands of RMB                         |   | 2016             |      |   | 2015 |   |
|                                        |   |             |      |   |   |   |
| Trade payables                              |   |             | 826,070   |   |   |   | 638,241 |   |
| Bills payables                              |   |             | 43,000    |   |   |   | 138,303 |   |
| Other payables for                          |   |             |      |   |   |   |   |   |
| -research and development activities        |   |             | 246,763   |   |   |   | 362,402 |   |
| -property, plant and equipment              |   |             | 181,717   |   |   |   | 322,817 |   |
| -marketing and promotion                    |   |             | 519,642   |   |   |   | 470,620 |   |
| -services                                   |   |             | 267,503   |   |   |   | 238,550 |   |
| Accrued payroll and other employee benefits |   |             | 53,628    |   |   |   | 111,651 |   |
| Interest payable                            |   |             | 37,379    |   |   |   | 10,145 |   |
| Liabilities due to related parties          |   |             | 402,188   |   |   |   | 106,887 |   |
| Receipt in advance                          |   |             | 39,950    |   |   |   | 31,009 |   |
| Others                                      |   |             | 179,317   |   |   |   | 184,916 |   |
|                                        |   |             |      |   |   |   |   |   |
|                                        |   |             | 2,797,157 |   |   |   | 2,615,541 |   |
|                                        |   |             |      |   |   |   |   |   |
| Non-current                                 |   |             | 112,488   |   |   |   | - |   |
| Current                                     |   |             | 2,684,669 |   |   |   | 2,615,541 |   |
|                                        |   |             |      |   |   |   |   |   |
|                                        |   |             | 2,797,157 |   |   |   | 2,615,541 |   |

| 26 | Provisions |
|----|------------|

| 27 | Financial risk management and fair values of financial instruments |
|----|--------------------------------------------------------------------|

----

| 27 | Financial risk management and fair values of financial instruments (continued) |
|----|--------------------------------------------------------------------------------|

|  (a) | Credit risk |
|-----------|-------------|

| (b) | Liquidity risk |
|-----|----------------|

----

| 27 | Financial risk management and fair values of financial instruments (continued) |
|----|--------------------------------------------------------------------------------|

| (b) | Liquidity risk (continued) |
|-----|----------------------------|

|                     |   | *Contractual undiscounted cash flow* |      |   |                                   |   |
|--------------------------|--------|--------------------------------------|-----------|--------|----------------------------------------|--------|
|                     |   | Within 1 year or on demand           |      |   | More than 1 year but less than 2 years |   |   | More than 2 years but less than 5 years |   |   | More than 5 years |   |   | Total |   |   | Carrying amount at balance sheet date |   |
|                     |   |                                 |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As at 31 December 2016   |   |                                 |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade and other payables |   |                                 | 2,684,669 |   |                                   |   | 21,426 |   |   |   | 103,885 |   |   |   | - |   |   |   | 2,809,980 |   |   |   | 2,797,157 |   |
| Loans and borrowings     |   |                                 | 2,881,389 |   |                                   |   | 852,455 |   |   |   | 2,646,014 |   |   |   | 1,489,919 |   |   |   | 7,869,777 |   |   |   | 6,890,146 |   |
|                     |   |                                 |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    |   |                                 | 5,566,058 |   |                                   |   | 873,881 |   |   |   | 2,749,899 |   |   |   | 1,489,919 |   |   |   | 10,679,757 |   |   |   | 9,687,303 |   |
|                     |   |                                 |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As at 31 December 2015   |   |                                 |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade and other payables |   |                                 | 2,615,541 |   |                                   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,615,541 |   |   |   | 2,615,541 |   |
| Loans and borrowings     |   |                                 | 3,147,205 |   |                                   |   | 653,642 |   |   |   | 2,647,693 |   |   |   | 2,341,573 |   |   |   | 8,790,113 |   |   |   | 7,489,188 |   |
|                     |   |                                 |      |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                    |   |                                 | 5,762,746 |   |                                   |   | 653,642 |   |   |   | 2,647,693 |   |   |   | 2,341,573 |   |   |   | 11,405,654 |   |   |   | 10,104,729 |   |

| (c) | Market risk |
|-----|-------------|

|   | - | Currency risk |
|--------|---|---------------|

----

| 27 | Financial risk management and fair values of financial instruments (continued) |
|----|--------------------------------------------------------------------------------|

| (c) | Market risk (continued) |
|-----|-------------------------|

|                                         |   | At 31 December |    |
|----------------------------------------------|--------|----------------|---------|
| EUR                                          |   | 2016           |    |   | 2015 |   |
|                                         |   | RMB'000        |    |   | RMB'000 |   |
|                                         |   |           |    |   |   |   |
| Cash and cash equivalent                     |   |           | 1,549   |   |   |   | 5,419 |   |
| Prepayments                                  |   |           | 784     |   |   |   | 898 |   |
| Trade and other payables                     |   |           | (18,673 | ) |   |   | (18,400 | ) |
|                                         |   |           |    |   |   |   |   |   |
| Net statement of financial position exposure |   |           | (16,340 | ) |   |   | (12,083 | ) |
|                                         |   |    | *At 31 December*  |   |
|----------------------------------------------|--------|---------|------------------------|--------|
| USD                                          |   |    | 2016                   |   |   |   | 2015 |   |
|                                         |   | RMB'000 |                   |   | RMB'000 |   |
|                                         |   |    |                   |   |   |   |   |   |
| Cash and cash equivalent                     |   |    | 9,987                  |   |   |   | 6,484 |   |
| Prepayments                                  |   |    | 284                    |   |   |   | 3,624 |   |
| Trade and other payables                     |   |    | (7,922                 | )      |   |   | (331 | ) |
| Loans and borrowings                         |   |    | -                      |   |   |   | (993,321 | ) |
|                                         |   |    |                   |   |   |   |   |   |
| Net statement of financial position exposure |   |    | 2,349                  |   |   |   | (983,544 | ) |
|                                         |   | At 31 December |   |
|----------------------------------------------|--------|----------------|--------|
| GBP                                          |   |           | 2016   |   |   |   | 2015 |   |
|                                         |   | RMB'000        |   |   | RMB'000 |   |
|                                         |   |           |   |   |   |   |   |   |
| Trade and other payables                     |   |           | (706   | ) |   |   | - |   |
|                                         |   |           |   |   |   |   |   |   |
| Net statement of financial position exposure |   |           | (706   | ) |   |   | - |   |

----

| 27 | Financial risk management and fair values of financial instruments (continued) |
|----|--------------------------------------------------------------------------------|

| (c) | Market risk (continued) |
|-----|-------------------------|

|   |   |  *Average rate*    |   |   |  *Year end spot rate*    |   |
|--------|--------|----------------------------------------|--------|--------|----------------------------------------------|--------|
|   |   | 2016                                   |   |   | 2015                                         |   |   | 2016 |   |   | 2015 |   |
|   |   |                                   |   |   |                                         |   |   |   |   |   |   |   |
| EUR    |   |                                   | 7.2010 |   |                                         |   | 7.2754 |   |   |   | 7.3068 |   |   |   | 7.0952 |   |
| USD    |   |                                   | 6.7153 |   |                                         |   | 6.3063 |   |   |   | 6.9370 |   |   |   | 6.4936 |   |
| GBP    |   |                                   | 9.0627 |   |                                         |   | 9.5798 |   |   |   | 8.5094 |   |   |   | 9.6159 |   |

|               |   | *At 31 December* |   |
|--------------------|--------|------------------|--------|
|               |   | 2016             |   |   | 2015 |   |
|               |   | Strengthening    |   |   | Weakening |   |   | Strengthening |   |   | Weakening |   |
|               |   | RMB'000          |   |   | RMB'000 |   |   | RMB'000 |   |   | RMB'000 |   |
|               |   |             |   |   |   |   |   |   |   |   |   |   |
| EUR (10% movement) |   |             | (1,634 | ) |   |   | 1,634 |   |   |   | (1,207 | ) |   |   | 1,207 |   |
| USD (10% movement) |   |             | 235    |   |   |   | (235 | ) |   |   | (98,355 | ) |   |   | 98,355 |   |
| GBP (10% movement) |   |             | (71    | ) |   |   | 71 |   |   |   | - |   |   |   | - |   |

|       |   |          |         |   | At 31 December |   |
|------------|--------|---------------|--------------|--------|----------------|--------|
|       |   | Interest rate |         |   | 2016           |   |   | 2015 |   |
|       |   |          |         |   | RMB'000        |   |   | RMB'000 |   |
|       |   |          |         |   |           |   |   |   |   |
| Borrowings |   |          | 4.35% - 6.70 | %      |           |   | 6,890,146 |   |   |   | 7,488,709 |   |

----

| 27 | Financial risk management and fair values of financial instruments (continued) |
|----|--------------------------------------------------------------------------------|

| (c) | Market risk (continued) |
|-----|-------------------------|

| (d) | Fair value |
|-----|------------|

|   | ●   Level1: | (highest level): fair values measured using quoted prices (unadjusted) in active markets for identical  financial instruments; |
|--------|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | ●   Level2: | fair values measured using quoted prices in active markets for similar financial instruments, or using valuation techniques in which all significant inputs are directly or indirectly based on observable market data; |
|--------|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ●   Level3: | (lowest level): fair values measured using valuation techniques in which any significant input is not based on observable market data. |
|--------|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Capital management |
|-----|--------------------|

----

| 28 | Operating leases |
|----|------------------|

| (a) | Leases as lessee |
|-----|------------------|

|                            |   | *At 31 December* |    |
|---------------------------------|--------|------------------|---------|
| In thousands of RMB             |   | 2016             |    |   | 2015 |   |
|                            |   |             |    |   |   |   |
| Within 1 year                   |   |             | 35,202  |   |   |   | 30,206 |   |
| After 1 year but within 5 years |   |             | 96,197  |   |   |   | 82,009 |   |
| After 5 years                   |   |             | 49,762  |   |   |   | 72,481 |   |
|                            |   |             |    |   |   |   |   |   |
|                            |   |             | 181,161 |   |   |   | 184,696 |   |

| (b) | Leases as lessor |
|-----|------------------|

|                            |   |  *At 31 December*    |   |
|---------------------------------|--------|------------------------------------------|--------|
| In thousands of RMB             |   | 2016                                     |   |   | 2015 |   |
|                            |   |                                     |   |   |   |   |
| Within 1 year                   |   |                                     | 20,016 |   |   |   | 9,367 |   |
| After 1 year but within 5 years |   |                                     | -      |   |   |   | - |   |
|                            |   |                                     |   |   |   |   |   |   |
|                            |   |                                     | 20,016 |   |   |   | 9,367 |   |

| 29 | Commitments |
|----|-------------|

|                              |   | *At 31 December* |    |
|-----------------------------------|--------|------------------|---------|
| In thousands of RMB               |   | 2016             |    |   | 2015 |   |
|                              |   |             |    |   |   |   |
| Contracted for                    |   |             | 266,103 |   |   |   | 652,587 |   |
| Authorised but not contracted for |   |             | -       |   |   |   | - |   |
|                              |   |             |    |   |   |   |   |   |
|                              |   |             | 266,103 |   |   |   | 652,587 |   |

----

| 30 | Related parties |
|----|-----------------|

| (a) | Parent and ultimate controlling party |
|-----|---------------------------------------|

| (b) | Transactions with key management personnel |
|-----|--------------------------------------------|

| In thousands of RMB                                                            |   | 2016   |   |   | 2015   |   |   | 2014   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                           |   |   |   |   |   |   |   |   |   |
| Salaries, benefit and contribution to the defined contribution retirement plan |   |   | 12,979 |   |   |   | 19,700 |   |   |   | 10,941 |   |

| (c) | Other related party transactions |
|-----|----------------------------------|

| In thousands of RMB                                                                   |   | Note   |   |   | 2016   |      |   | 2015   |   |      | 2014   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                  |   |   |   |   |   |      |   |   |   |      |   |   |
| Loan from Wuhu Chery                                                                  |   |        |   |   |   | 975,000   |   |   |   | 1,662,783 |   |   |   | 800,000 |   |
| Loan from Quantum (2007)                                                              |   |   |   |   |   | 975,000   |   |   |   | 800,000   |   |   |   | 750,000 |   |
| Conversion of loan to capital                                                         |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    - Wuhu Chery                                                        |   |   |   |   |   | 1,046,820 |   |   |   | 900,000   |   |   |   | - |   |
|    - Quantum (2007)                                                    |   |   |   |   |   | 1,046,820 |   |   |   | 900,000   |   |   |   | 50,000 |   |
| Sale of goods                                                                         |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    - Chery Auto                                                        |   |   |   |   |   | 11,170    |   |   |   | 6,717     |   |   |   | - |   |
|    - Fund & Liberty Car Rental/Leasing Co., Ltd. ("Fund")          |   |   |   |   |   | -         |   |   |   | 1,153     |   |   |   | 4,520 |   |
|    - Chery Auto's subsidiary                                           |   |   |   |   |   | 4,533     |   |   |   |      |   |   |   |   |   |
| Purchase of material and parts                                                        |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    - Chery Auto                                                        |   |   |   |   |   | 327,694   |   |   |   | 189,754   |   |   |   | 90,306 |   |
|    - Chery Auto's subsidy                                                   |   |   |   |   |   | 2,317     |   |   |   | -         |   |   |   | - |   |
| Price adjustment on purchase of material and parts - Chery Auto                       |   | 11     |   |   |   | 72,953    |   |   |   | 42,877    |   |   |   | - |   |
| Service fee                                                                           |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    - Chery Auto                                                        |   |   |   |   |   | 4,817     |   |   |   | 42,339    |   |   |   | 8,495 |   |
|    - Shanghai SICAR Vehicle Technology Development Co., Ltd. ("SICAR") |   |   |   |   |   | -         |   |   |   | 4,453     |   |   |   | 13,182 |   |
| Rental and other expenses                                                             |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |
|    - Chery Huiyin Motor Finance Service Co., Ltd. ("Huiyin")           |   |   |   |   |   | 33,644    |   |   |   | 16,821    |   |   |   | 1,777 |   |
|    - Chery Auto's subsidy                                              |   |   |   |   |   | -         |   |   |   | 18        |   |   |   | 80 |   |
|    - Fund                                                              |   |   |   |   |   | 2,703     |   |   |   | -         |   |   |   | - |   |
|    - Chery Holdings Ltd.                                               |   |   |   |   |   | 59        |   |   |   | -         |   |   |   | - |   |
|    - Kenon Holdings Ltd.                                               |   |   |   |   |   | -         |   |   |   | 2,167     |   |   |   | 1,321 |   |
| Charge for licence agreement                                                          |   | 24     |   |   |   | -         |   |   |   | 300,000   |   |   |   | - |   |
| Sales proceeds received from Huiyin pursuant to tri-party agreements                  |   | (i)    |   |   |   | 2,425,437 |   |   |   | 1,173,051 |   |   |   | 542,292 |   |

----

| 30 | Related parties (continued) |
|----|-----------------------------|

| (c) | Other related party transactions (continued) |
|-----|----------------------------------------------|

| In thousands of RMB                               |   | Note   |   |   | At 31 December 2016 |      |   | At 31 December 2015 |   |
|---------------------------------------------------|--------|--------|--------|--------|---------------------|-----------|--------|---------------------|--------|
|                                              |   |   |   |   |                |      |   |                |   |
| Amounts due from related parties                  |   |   |   |   |                |      |   |                |   |
| - trade receivables from Fund                     |   |        |   |   |                | 3,790     |   |                |   | 3,790 |   |
| - trade receivables from Chery Auto's subsidiary  |   |   |   |   |                | 1,689     |   |                |   | 1,832 |   |
| - trade receivables from Chery Auto               |   |   |   |   |                | 1,144     |   |                |   | - |   |
| - other receivables from Chery Auto               |   |   |   |   |                | 9,661     |   |                |   | 3,011 |   |
| - other receivables from Chery Auto's subsidiary  |   |   |   |   |                | -         |   |                |   | 5 |   |
|                                              |   |   |   |   |                |      |   |                |   |   |   |
|                                              |   |   |   |   |                | 16,284    |   |                |   | 8,638 |   |
|                                              |   |   |   |   |                |      |   |                |   |   |   |
| - loan payable to Wuhu Chery                      |   |   |   |   |                | 700,000   |   |                |   | 762,783 |   |
| - loan payable to Quantum (2007) LLCs             |   |   |   |   |                | 700,000   |   |                |   | 745,917 |   |
| - payables to Chery Auto                          |   |   |   |   |                | 373,058   |   |                |   | 103,454 |   |
| - payables to Kenon Holdings Ltd.                 |   |   |   |   |                | -         |   |                |   | 176 |   |
| - payables to Fund                                |   |   |   |   |                | 200       |   |                |   | 771 |   |
| - payables to Chery Auto's subsidiary             |   |   |   |   |                | 624       |   |                |   | 916 |   |
| - payables to SICAR                               |   |   |   |   |                | 1,570     |   |                |   | 1,570 |   |
| - receipt in advance from Huiyin                  |   | (i)    |   |   |                | 26,408    |   |                |   | - |   |
| - receipt in advance from Chery Auto's subsidiary |   |   |   |   |                | 328       |   |                |   | - |   |
|                                              |   |   |   |   |                |      |   |                |   |   |   |
|                                              |   |   |   |   |                | 1,802,188 |   |                |   | 1,615,587 |   |

----

| 30 | Related parties (continued) |
|----|-----------------------------|

| (c) | Other related party transactions (continued) |
|-----|----------------------------------------------|

|   | (i) | In 2014, the Group entered into tri-party arrangements with Huiyin and certain car dealers, who are the Group's direct customers. According to such arrangements, Huiyin provides financing to the dealers for their purchases from the Group. Huiyin is a subsidiary of Chery Group, which is engaged in providing financing to buyers of car manufacturing companies. Huiyin performs credit assessment on dealers and grants short-term (12-month or less) revolving lines of credit to them. The Group accepts purchase orders from these dealers only if they have sufficient unused credit from Huiyin.  Upon confirmation of sales orders accepted by the Group, Huiyin remits purchase amount directly to the Group on behalf of individual dealers, and outstanding loan balances payable of dealers due to Huiyin are increased by the equivalent amount at the same time.  The Group was not responsible for the repayment of loans between the dealers and Huiyin. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (d) | Relationship with the related parties under the transactions stated in 30(c) above |
|-----------|------------------------------------------------------------------------------------|

| Name of the entities                       |           | Relationship with the Group          |
|--------------------------------------------|----------------|--------------------------------------|
|                                       |           |                                 |
| Kenon Holdings Ltd.                        |           | Immediate parent company of Quantum  |
| Wuhu Chery Automobile Investment Co., Ltd. | Parent Company |
| Quantum (2007) LLC                         |           | Parent Company                       |
| Wuhu Chery Car Rental Co., Ltd             |           | Chery Auto's subsidiary              |
| Chery Investment Co., Ltd in Ordos         |           | Chery Auto's subsidiary              |
| Huiyin                                     |           | Chery Auto's subsidiary              |
| SICAR                                      |           | Joint venture invested by Chery Auto |
| Fund                                       |           | Associate invested by the Group      |

| 31 | Subsequent event |
|----|------------------|

----

|   | **Kenon Holdings Ltd.** |                           |
|--------|-------------------------|--------------------------------|
|   |                    |                           |   |
|        | By:                     | /s/ Yoav Doppelt          |   |
|   |                    | Name: Yoav Doppelt             |   |
|   |                    | Title: Chief Executive Officer |   |
|   |                    |                           |   |

----

| Exhibit Number |   | Description of Document                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 1.1            |   | Kenon Holdings Ltd.’s Constitution (Incorporated by reference to Exhibit 1.1 to Amendment No. 1 to Kenon’s Registration Statement on Form 20-F, filed on December 19, 2014)                                                                                                                                                                                                                                                                                                                                                            |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.1            |   | Form of Specimen Share Certificate for Kenon Holdings Ltd.’s Ordinary Shares (Incorporated by reference to Exhibit 2.1 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)                                                                                                                                                                                                                                                                                                     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.2            |   | Registration Rights Agreement, dated as of January 7, 2015, between Kenon Holdings Ltd. and Millenium Investments Elad Ltd. (Incorporated by reference to Exhibit 99.5 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                               |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.3            |   | Registration Rights Agreement, dated as of January 7, 2015, between Kenon Holdings Ltd. and Bank Leumi Le-Israel B.M. (Incorporated by reference to Exhibit 99.6 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                                     |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 2.4            |   | Registration Rights Agreement, dated as of January 7, 2015, between Kenon Holdings Ltd. and XT Investments Ltd. (Incorporated by reference to Exhibit 99.7 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                                           |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.1            |   | Sale, Separation and Distribution Agreement, dated as of January 7, 2015, between Israel Corporation Ltd. and Kenon Holdings Ltd. (Incorporated by reference to Exhibit 99.2 to Kenon’s Report on Form 6-K, furnished to the SEC on January 8, 2015)                                                                                                                                                                                                                                                                                         |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.2            |   | Loan Agreement, dated as of January 7, 2015, between Israel Corporation Ltd. and Kenon Holdings Ltd, as supplemented by Supplement No. 1 to the Loan Agreement, dated March 17, 2016 (Incorporated by reference to Exhibit 4.2 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                                                                              |
| 4.3            |   | English translation of Natural Gas Supply Agreement, dated as of January 2, 2006, as amended, among Kallpa Generación S.A., Pluspetrol Peru Corporation S.A., Pluspetrol Camisea S.A., Hunt Oil Company of Peru L.L.C. Sucursal del Peru, SK Corporation Sucursal Peruana, Sonatrach Peru Corporation S.A.C., Tecpetrol del Peru S.A.C. and Repsol Exploración Peru Sucursal del Peru (Incorporated by reference to Exhibit 4.3 to Amendment No. 1 to Kenon’s Draft Registration Statement on Form 20-F, filed on August 14, 2014) |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.4            |   | English translation of Natural Gas Transportation Agreement, dated as of December 10, 2007, as amended, between Kallpa Generación S.A. and Transportadora de Gas del Peru S.A. (Incorporated by reference to Exhibit 4.4 to Amendment No. 1 to Kenon’s Draft Registration Statement on Form 20-F, filed on August 14, 2014)                                                                                                                                                                                                             |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.5            |   | Turnkey Engineering, Procurement and Construction Contract, dated as of November 4, 2011, among Cerro del Águila S.A., Astaldi S.p.A. and GyM S.A., as amended (Incorporated by reference to Exhibit 4.5 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                                                                                                    |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.6            |   | English translation of Contract of Concession, dated as of October 23, 2010, as amended, between the Government of Peru and Kallpa Generación S.A., relating to the provision of electric energy services to the public (Incorporated by reference to Exhibit 4.6 to Amendment No. 1 to Kenon’s Draft Registration Statement on Form 20-F, filed on August 14, 2014)                                                                                                                                                                    |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.7†     |   | Joint Venture Contract, dated as of February 16, 2007, as amended, between Wuhu Chery Automobile Investment Co., Ltd. and Quantum (2007) LLC (Incorporated by reference to Exhibit 4.7 to Amendment No. 1 to Kenon’s Registration Statement on Form 20-F, filed on December 19, 2014)                                                                                                                                                                                                                                                        |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.8†     |   | Gas Sale and Purchase Agreement, dated as of November 25, 2012, among Noble Energy Mediterranean Ltd., Delek Drilling Limited Partnership, Isramco Negev 2 Limited Partnership, Avner Oil Exploration Limited Partnership, Dor Gas Exploration Limited Partnership, and O.P.C. Rotem Ltd. (Incorporated by reference to Exhibit 10.8 to Amendment No. 1 to IC Power Pte. Ltd.’s Form F-1, filed on November 2, 2015)                                                                                                                         |

----

| Exhibit Number |   | Description of Document |
|----------------|--------|-------------------------|

|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.9          |   | Indenture, dated as of April 4, 2011, between Inkia Energy Limited, as issuer, and Citibank, N.A.as trustee, relating to Inkia Energy Limited’s 8.375% Senior Notes due 2021 (Incorporated by reference to Exhibit 4.9 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)                                                               |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.10         |   | Facility Agreement, dated as of January 2, 2011, among O.P.C. Rotem Ltd., as borrower, Bank Leumi Le-Israel B.M., as arranger and agent, Bank Leumi Le-Israel Trust Company Ltd., as security trustee, and the senior lenders named therein (Incorporated by reference to Exhibit 4.10 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)     |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.11   |   | Credit Agreement, dated as of August 17, 2012, among Cerro del Águila S.A., as borrower, Sumitomo Mitsui Banking Corporation, as administrative agent, and other parties party thereto (Incorporated by reference to Exhibit 4.11 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2014, filed on March 31, 2015)                                                     |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.12   |   | Guarantee Contract, dated as of June 9, 2015, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd. (Incorporated by reference to Exhibit 4.12 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                         |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.13   |   | Guarantee Contract, dated as of November 5, 2015, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd. (Incorporated by reference to Exhibit 4.13 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                     |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.14   |   | Stock Purchase Agreement, dated as of December 29, 2015, among IC Power Distribution Holdings PTE, Limited, as Purchaser, Inkia Energy, Limited, as Purchaser Guarantor, DEORSA-DEOCSA Holdings Limited, as Seller, and Estrella Cooperatief BA (Incorporated by reference to Exhibit 4.14 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016) |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.15   |   | Pledge Agreement, dated as of March 17, 2016, between Israel Corporation Ltd. and IC Power Pte. Ltd. (Incorporated by reference to Exhibit 4.15 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                                            |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.16   |   | Security over Shares Agreement, dated as of March 17, 2016, between Israel Corporation Ltd. and Kenon Holdings Ltd. (Incorporated by reference to Exhibit 4.16 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)                                                                                                                             |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.17*  |   | Amendment and Restatement Agreement, dated as of September 2, 2016, relating to the Loan Agreement dated as of April 22, 2016, between Quantum (2007) LLC, as borrower, and Ansonia Holdings Singapore B.V., as lender, as amended                                                                                                                                                                           |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.18   |   | Undertaking Agreement, dated as of April 22, 2016, among Qoros Automotive Co., Ltd., Quantum (2007) LLC, Kenon Holdings Ltd., Wuhu Chery Automobile Investment Co., Ltd., Chery Automobiles Limited, and Ansonia Holdings Singapore B.V. (Incorporated by reference to Exhibit 4.18 to Kenon’s Annual Report on Form 20-F for the fiscal year ended December 31, 2015, filed on April 22, 2016)        |
|  4.19*  |   | Additional Undertaking Agreement, dated as of September 2, 2016, among Qoros Automotive Co., Ltd., Quantum (2007) LLC, Kenon Holdings Ltd., Wuhu Chery Automobile Investment Co., Ltd., Chery Automobiles Limited, and Ansonia Holdings Singapore B.V.                                                                                                                                                       |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.20*  |   | Fourth Amended and Restated Limited Liability Company Agreement of Quantum (2007) LLC, dated as of September 2, 2016                                                                                                                                                                                                                                                                                         |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.21*  |   | Release Agreement, dated December 21, 2016, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd.                                                                                                                                                                                                                                                                                                        |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.22*  |   | Equity Pledge Contract, dated December 21, 2016, between Quantum (2007) LLC, as Pledgor, and Chery Automobile Co. Ltd., as Pledgee                                                                                                                                                                                                                                                                           |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.23** |   | Further Release and Cash Support Agreement, dated March 9, 2017, between Kenon Holdings Ltd. and Chery Automobile Co. Ltd.                                                                                                                                                                                                                                                                                   |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|  4.24** |   | The Second Equity Pledge Contract in relation to 700 Million Loan, dated March 9, 2017, between Quantum (2007) LLC, as Pledgor, and Chery Automobile Co. Ltd., as Pledgee                                                                                                                                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 8.1*         |   | List of subsidiaries of Kenon Holdings Ltd.                                                                                                                                                                                                                                                                                                                                                                  |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 12.1*        |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                            |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 12.2*        |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                            |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 13.1*        |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                |

----

| Exhibit Number |   | Description of Document |
|----------------|--------|-------------------------|

|   |   |                                                                                                                                                                                                                  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.1*  |   | Consent of KPMG LLP, Independent Registered Public Accounting Firm of Kenon Holdings Ltd.                                                                                                                             |
|   |   |                                                                                                                                                                                                                  |
| 15.2*  |   | Consent of Somekh Chaikin, a Member Firm of KPMG International                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                  |
| 15.3*  |   | Consent of KPMG Huazhen LLP, Independent Auditor of Qoros Automotive Co., Ltd.                                                                                                                                        |
|   |   |                                                                                                                                                                                                                  |
| 15.4*  |   | Consent of Deloitte, Inc. (Panamá), Independent Registered Public Accounting Firm of the Combined Entities (Distribuidora de Electricidad de Oriente, S.A. and Distribuidora de Electricidad de Occidente, S.A.) |
|   |   |                                                                                                                                                                                                                  |
| 15.5*  |   | Consent of Brightman Almagor Zohar & Co., a Member Firm of Deloitte Touche Tohmatsu, independent auditor of Tower Semiconductor Ltd.                                                                              |
|   |   |                                                                                                                                                                                                                  |

----

| * | Filed herewith. |
|---|-----------------|

| ** | To be filed by amendment shortly after the date of this annual report. |
|----|------------------------------------------------------------------------|

| † | Portions of this exhibit have been omitted pursuant to a request for confidential treatment under Rule 24b-2 of the Exchange Act. Omitted information has been filed separately with the SEC. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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