Kenon Holdings Ltd. · NYSE:KEN
Kenon — Merger or Acquisition (September 2026)
11 slides from Kenon's merger presentation, Sep 30, 2026
Slide 1: Investment in Vicinity September 2026
Investment in Vicinity September 2026
Slide 2: Executive Summary (1/2)
• Kenon Holdings Ltd. (NYSE: KEN, TASE: KEN) ( “ Kenon ” ) has entered into an agreement (the “ Agreement ” ) to acquire 25 % of the equity interest in Vicinity District Energy ( “ Vicinity ” or the “ Company ” ) for cash consideration of approximately $ 450 million in connection with a sale of the
Slide 3: Vicinity Overview and Investment Rationale
• Vicinity is a fully integrated district heating / cooling infrastructure utility platform with in - house commercial, operating, e ngineering, and asset management capabilities. • Vicinity generates revenue primarily through the delivery of steam, hot water, and chilled water to its customer netwo
Slide 4: Business Overview
Illustrative Customer Type Institutional and Government Commercial Buildings Other Customer 2 Segment 2 $ 140 M+ Expected Run Rate Adjusted EBITDA 1 ~ 1,000 Buildings Multiple Major Metropolitan Markets Extensive Distribution Networks Highly Contracted Revenue and Strong Cash Flow Visibility ▪ > 2 /
Slide 5: Difficult to Replicate Infrastructure, Durable Utility Model, Stable Demand
Difficult to Replicate Infrastructure Durable Utility Model Stable, Resilient Demand ▪ Over 140 miles of privately - owned pipe located in core urban centers that would be exceptionally difficult and costly to replicate. ▪ Significant replacement value , as well as prolonged permitting and construct
Slide 6: Contract Structure and Gross Margin Attribution
Financial Flow Solution Flow Contract Structure Feedstock Vicinity Customer Steam Decarb. Steam Hot Water Chilled Water Natural Gas Electricity Natural / Waste Heat Water Feedwater Oil Low Carbon Fuel Fixed Capacity Charge Fuel and Consumption Margin (Cost Pass - Through and Efficiency Margin) A B B
Slide 7: Customer Value Propositions by Segment
▪ Capital Avoidance: Frees up capital from costly equipment installations. ▪ Affordability: Offers predictable energy pricing and reduced commodity volatility. ▪ Repurposed Space: Frees up to 10 % space for leasable area. Commercial ▪ Scale: Supports large, continuous thermal demand for process heat
Slide 8: Traditional vs Electrified District Heating / Cooling System
Traditional (Fossil) District Heating / Cooling System District Heating / Cooling System with Electrification New technologies Heat Pump eBoiler CHP Gas Boiler Feedstock (electricity) Customers Steam send - out 4 1 2 3 1 Company procures renewable electricity to produce decarbonized steam. 2 Company
Slide 9: Investment Rationale for Kenon
Business Model Highly contracted to higher education, healthcare, government, industrial, commercial and residential users with ~ 15 - year weighted average tenor, inflation protection, and investment grade credit. Sector Diversification Offers significant growth opportunities, whilst diversifying K
Slide 10: Harrison Street Experience and LLC Agreement
Harrison Street District Energy Experience Long - Term Investment Horizon LLC Agreement • District energy has been a core strategy of funds managed by HSAM, with experience spanning greenfield and brownfield investments and the delivery of hot water, chilled water and steam . • Funds managed by HSAM
Slide 11: Forward-Looking Statements
This presentation and related discussions include forward - looking statements within the meaning of the Private Securities Litiga tion Reform Act of 1995 . You can generally identify these statements by the use of words like “ may ” , “ will ” , “ could ” , “ should ” , “ believe ” , “ expect ” , “
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