Annual Report 2020
Total Page：16
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ENLIGHT RENEWABLE ENERGY LTD. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED AS OF DECEMBER 31, 2020 Enlight Renewable Energy Ltd. Financial Statements as of December 31 2020 Table of contents Page Auditors’ report regarding the audit of the components of internal control over financial reporting 2 Auditors’ report – audit of the annual financial statements 3 Financial statements: Consolidated statements of financial position 4-5 Consolidated statements of profit or loss and other comprehensive income 6-7 Consolidated statements of changes in equity 8-10 Consolidated statements of cash flows 11-13 Notes to financial statements 14-120 Somekh Chaikin KPMG Millennium Tower 17 Ha’arba’a St. POB 609 Tel Aviv 6100601 03 684-8000 Auditors’ report to the shareholders of Enlight Renewable Energy Ltd. Regarding the audit of the components of internal control over financial reporting in accordance with Section 9B(c) to the Israeli Securities Regulations (Periodic and Immediate Reports), 1970 We have audited components of internal control over financial reporting of Enlight Renewable Energy Ltd. and its subsidiaries (hereinafter – “the Company”), as of December 31, 2020. These components of internal control were set as explained in the next paragraph. The Company’s Board of Directors and Management are responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of components of internal control over financial reporting included in the accompanying periodic report for the above date. Our responsibility is to express an opinion on the components of internal control over financial reporting based on our audit. Components of internal control over financial reporting were audited by us according to Israel Audit Standard 911 of the Institute of Certified Public Accountants in Israel “Audit of the internal Control Components over Financial Reporting” (hereinafter – “Israel Audit Standard 911”). These components are: (1) entity level controls, including controls over the preparation process and closing of the financial reporting and general controls of information systems; (2) controls over the projects process; (all of these together are called the “audited control components”. We conducted our audits in accordance with Israel Audit Standard 911. This standard requires that we plan and perform the audit to identify the audited control components and to obtain reasonable assurance whether these control components have been maintained effectively in all material respects. The audit includes obtaining an understanding of internal control over financial reporting, identifying the audited control components, assessing the risk that a material weakness exists in the audited control components, as well as review and assessment of effective planning and maintaining of these audited control components based on the estimated risk. Our audit, for those audited control components, also included performing such other procedures as we considered necessary under the circumstances. Our audit referred only to the audited control components, unlike internal control of all material processes over financial reporting, and therefore our opinion refers only to the audited control components. In addition, our audit did not take into account the mutual influences between the audited control components and those which are not audited, and therefore our opinion does not take into account such possible effects. We believe that our audit provides a reasonable basis for our opinion in the context described above. Due to inherent limitations, internal control over financial reporting in general and components of internal controls in particular, may not prevent or detect a misstatement. Also, making projections on the basis of any evaluation of effectiveness is subject to the risk that controls may become inadequate because of changes in circumstances, or that the degree of compliance with the policies or procedures may be adversely affected. In our opinion, based on our audit, the Company effectively maintained, in all material respects, the audited control components as of December 31, 2020. We also audited the Company's consolidated financial statements as of December 31, 2020 and 2019 and for each of the two years in the period ended December 31, 2020, in accordance with auditing standards generally accepted in Israel, and our report, of March 30, 2021 included an unqualified opinion on these financial statements, based on our audit and the reports of the other auditors. Somekh Chaikin Certified Public Accountants March 30, 2021 - 2 - Somekh Chaikin KPMG Millennium Tower 17 Ha’arba’a St. POB 609 Tel Aviv 6100601 03 684-8000 Auditors’ report to the shareholders of Enlight Renewable Energy Ltd. We have audited the attached consolidated statements of financial position of Enlight Renewable Energy Ltd. (hereinafter – the "Company") as of December 31, 2020 and 2019 and the consolidated statements of profit or loss, other comprehensive income, changes in equity and cash flows for each of the years in the period ended December 31, 2020. These financial statements are the responsibility of the Company’s Board of Directors and Management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Company for the year ended December 31 2018 were audited by other auditors, whose report thereon, dated March 25 2019, included an unqualified opinion. We did not audit the financial statements of subsidiaries, whose assets included in consolidation constitute approximately 37% and approximately 34% of total consolidated assets as of December 31, 2020 and 2019, respectively, and whose revenues included in consolidation comprise approximately 62% and approximately 69%, of total consolidated revenues for the years ended December 31, 2020 and 2019, respectively. The financial statements of those companies were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to amounts included for those companies, is based on the reports of the other auditors. We conducted our audit in accordance auditing standards generally accepted in Israel, including those prescribed by the Israeli Auditors (Mode of Performance) Regulations, 1973. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Company’s Board of Directors and management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, based on our audit and on the reports of the other auditors, the above-mentioned consolidated financial statements present fairly, in all material aspects, the financial position of the Company and its subsidiaries as of December 31, 2020 and 2019, and the results of their operations, changes in equity and cash flows for each of the two years in the period ended December 31 2020, in conformity with International Financial Reporting Standards (IFRS) and the provisions of the Securities Regulations (Annual Financial Statements) – 2010. We have also audited in accordance with Israel Audit Standard 911 of the Institute of Certified Public Accountants in Israel “Audit of the Internal Control Components over Financial Reporting”, internal control components over financial reporting of the company as at December 31, 2020, and our report of March 30, 2021 included an unqualified opinion on the effectiveness of those components. Somekh Chaikin Certified Public Accountants March 30, 2021 - 3 - Enlight Renewable Energy Ltd. Consolidated Statements of Financial Position as of December 31 2020 2020 2019 Note NIS in thousands Assets Current assets Cash and cash equivalents 5A 319,345 683,166 Cash restricted as to use 5B 282,157 185,871 Financial assets at fair value through profit or loss 27C 104,516 72,058 Trade receivables 6 36,711 52,762 Other accounts receivable 7 89,012 19,692 Current maturities of contract assets in respect of concession arrangements 9 48,541 46,292 Total current assets 880,282 1,059,841 Non-current assets Cash restricted as to use 5B 63,435 98,460 Other accounts receivable 1,693 1,712 Deferred costs in respect of projects 48,447 83,901 Deferred borrowing costs 83,898 26,521 Investments accounted for by the equity method 8C, 30A(11) 104,373 27,226 Loans to entities accounted for by the equity method 8C 140,551 68,764 Advances on account of acquisition of shares 30A(9) 3,118 - Contract assets in respect of concession arrangements 9 871,758 925,811 Property, plant and equipment, net 10 3,015,457 1,825,715 Intangible assets, net 11 291,195 193,660 Deferred taxes 17 44,375 8,834 Right of use asset, net 26 260,302 140,253 Financial assets at fair value through profit or loss 27C, 30A(11) 32,519 - Total non-current assets 4,961,121 3,400,857 Total assets 5,841,403 4,460,698 The notes to the consolidated financial statements are an integral part thereof. - 4 - Enlight Renewable Energy Ltd. Consolidated Statements of Financial Position as of December 31 2020 (continued) 2020 2019 Liabilities and equity Note NIS in thousands Current liabilities Credit and current maturities of loans from banks and other