Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Presentation (March 2021)

28 slides from Ormat Technologies's investor presentation, March 2021

  1. Slide 1: Ormat Technologies, Inc. Investor Presentation March 2021

    ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MARCH 2021 Copyright Copyright©©2021 2021Ormat OrmatTechnologies, Technologies,Inc. Inc.

  2. Slide 2: Safe Harbor Statement and Non-GAAP Metrics

    SAFE HARBOR STATEMENT AND NON-GAAP METRICS THIS PRESENTATION INCLUDES FORWARD-LOOKING STATEMENTS, AND THE DISCLAIMER SHOULD BE READ CAREFULLY FORWARD-LOOKING STATEMENTS This presentation, and information provided during any discussion accompanying this presentation, These forward-looking statements

  3. Slide 3: Introduction

    INTRODUCTION Copyright © 2021 Ormat Technologies, Inc. 3

  4. Slide 4: A Leading Renewable Energy Provider in Geothermal and Energy Storage

    A LEADING RENEWABLE over Own & operate over ENERGY PROVIDER 55 1,000MW WITH A PROVEN TRACK RECORD Years of experience Geothermal, Storage, Solar PV & REG(1) IN GEOTHERMAL AND ENERGY STORAGE 1,400 705$M Employees 2020 revenues 420$M 86$M 2020 adj. EBITDA(2) 2020 Net income(3) (1) REG – Recovered Ener

  5. Slide 5: Our Business Segments

    OUR BUSINESS SEGMENTS 77% 21% 2% of 2020 of 2020 of 2020 revenues revenues revenues ELECTRICITY PRODUCT ENERGY STORAGE Develop, build, own and operate Design, manufacture and sell Growing to establish geothermal, solar and recovered equipment for geothermal and leading position energy-based (REG) po

  6. Slide 6: Our Core Competencies

    OUR CORE COMPETENCIES THE WORLD’S ONLY VERTICALLY INTEGRATED GEOTHERMAL COMPANY Development & Drilling Engineering Manufacturing Construction Operation exploration ELECTRICITY PRODUCT STORAGE Copyright © 2021 Ormat Technologies, Inc. 6

  7. Slide 7: Electricity Segment Overview

    ELECTRICITY SEGMENT OVERVIEW 5 4 1 2 3 6 Diversified portfolio 63% 37% U.S. International 01 U.S. 02 03 Honduras 2020 647 MW Guatemala 38 MW 40 MW Geographic 04 Guadeloupe 05 Kenya 06 Indonesia breakdown 15 MW 150 MW 42 MW(1) of revenues $540 $541 $510 Global operation $466 Profitable $436 94% geoth

  8. Slide 8: Geothermal Market

    GEOTHERMAL MARKET Ormat -the 2nd largest geothermal owner & operator 1,400 100 1,200 80 1,000 800 60 600 40 400 20 200 0 0 EDC (PNOC) Ormat CFE ENEL Star Energy Calpine Aboitiz Contact Mercury Terra-Gen Consortium Energy (ECP) Operation (MW) Estimated Project Count 13.5GW Global Installed geothermal

  9. Slide 9: Product Segment Overview

    PRODUCT SEGMENT OVERVIEW Market leader Primary provider of geothermal binary plants Suppliers of geothermal power plants 2015 – 2019 capacity, MW Built approx. 190 power plants and installed approx. 3,200 MW of geothermal & REG over the years 56% 72% Binary Ormat STG & BINARY 3rd parties’ backlog BI

  10. Slide 10: Energy Storage Overview

    ENERGY STORAGE OVERVIEW 4 Growth in U.S. energy storage incremental 1 3 capacity (MW) 2 6,062 5,260 01 CA 02 TX 20MW/80MWh 10MW/10MW 4,115 h 3,705 03 NJ 04 VT 41MW/41MW 2MW/5MWh h Establishing strong market position 1,151 Focus on largest and most lucrative markets California, Texas, New York and PJ

  11. Slide 11: Ormat's Growth Drivers

    ORMAT’S GROWTH DRIVERS Copyright © 2021 Ormat Technologies, Inc. 11

  12. Slide 12: Robust Growth Plan

    Increase solar and geothermal capacity significantly Accelerate storage capacity to establish ROBUST leading position in the U.S. storage sector GROWTH PLAN YE 2023 portfolio target: 1,455MW - 1,575MW Total expected MW growth: ~ 50% This growth plan is subject to obtaining all permits and regulatory

  13. Slide 13: 2023 Growth Target by Segments

    2023 GROWTH GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE TARGET BY SEGMENTS YE 2023 TARGET 1,182MW-1,202MW 273MW-373MW MW ADDITION 250MW-270MW 200MW-300MW MW GROWTH 27%-29% 274%-411% Change in MW growth is compared to a 932MW Geothermal & Solar portfolio and a 73 MW storage portfolio in YE 2020 Copyrigh

  14. Slide 14: Geothermal and Solar Projects Under Development

    Projected Expected Project Capacity PPA COD (MW) U.S - Heber Complex 11 H1 2022  U.S - CD4 30 Q1 2022  U.S - North Valley 30 2022 - U.S - McGinness Hills Expansion 8 2021  GEOTHERMAL 10 PROJECTS U.S. - Puna expansion 8 2022  143-148 MW U.S - Dixie Meadows 15 2022  U.S - Tungsten Mountain 2 11 H

  15. Slide 15: Geothermal Prospects

    Region Location # of sites Nevada 21 California 4 U.S. Oregon 2 Utah 2 GEOTHERMAL New Mexico 1 PROSPECTS GEOTHERMAL Guatemala 2 41 PROSPECTS CENTRAL AMERICA Honduras 1 Ethiopia 4 AFRICA Madagascar 1 New Zealand 1 ASIA PACIFIC Indonesia 2 Copyright © 2021 Ormat Technologies, Inc. 15

  16. Slide 16: Energy Storage Projects Under Development

    Projected Expected Type of Project Capacity COD contract (MW) Capacity PPA CA - Valecito 10 Q2 2021 and Merchant Capacity PPA CA - Tierra Buena 5 Q4 2021 and Merchant ENERGY ENERGY STORAGE STORAGE 5 PROJECTS TX - Upton 25 Q4 2021 Merchant PROJECTS 67 MW UNDER NJ - Andover 20 Q1 2022 Merchant DEVELOP

  17. Slide 17: Energy Storage Pipeline

    1.2GW 33 200-300MW potential capacity of named expected addition U.S. storage pipeline prospects by YE 2023 ENERGY STORAGE PIPELINE Copyright © 2021 Ormat Technologies, Inc.

  18. Slide 18: 2021 Guidance

    2021 GUIDANCE MW EXPECTATIONS ADJUSTED EBITDA EXPECTATIONS >1,500MW $500M run-rate(2) 1,005MW $420M 2020 2021 2022 2023 2020 2021 2022 2023 (1) For non –GAAP financial measures reconciliation please see the appendix slides Copyright © 2021 Ormat Technologies, Inc. 18 (2) Annual run-rate towards the

  19. Slide 19: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Copyright © 2021 Ormat Technologies, Inc. 19

  20. Slide 20: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Strong financial Innovative Robust growth ESG positioning potential Copyright © 2021 Ormat Technologies, 20Inc. 20

  21. Slide 21: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Installed capacity growth (MW) Revenue growth ($m) Electricity segment Product segment Energy Storage 910 914 932 $719 $746 $705 795 $663 $693 713 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Electricity segment gross margin (%) Adjusted EBITDA growth ($m) $420 $368

  22. Slide 22: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)(1) Project Finance Corporate Debt $1,456 $1,268 $1,238 $1,090 $1,085 $939 795 $919 $914 509 522 $817 273 $674 305 666 759 716 661 609 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Net Debt to Capitalization (Total Equity) (1) Net Debt to

  23. Slide 23: Pure-Play Renewables Platform Aligned with ESG Principles

    PURE-PLAY RENEWABLES PLATFORM ALIGNED WITH ESG PRINCIPLES Singular focus on renewables ORMAT CO2 EMISSIONS ARE LOWER THAN ALTERNATIVE RESOURCES (MM)1 Publish annual Corporate 7.6 tons of Sustainability Report CO2 5.4 tons of CO2 3.2 100% local employment at tons of CO2 0.1 operational facilities ton

  24. Slide 24: Attractive Investment Thesis

    ATTRACTIVE INVESTMENT THESIS Strong financial Robust growth ESG positioning potential Renewable asset growth in Consistent track record of Significant, the U.S. supported by strong returns for consistent domestic favorable regulatory shareholders growth dynamics Long-term International geothermal Pu

  25. Slide 25: Appendix

    APPENDIX Copyright © 2021 Ormat Technologies, Inc. 25

  26. Slide 26: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA Three Months Ended December 31, Twelve-Months Ended December 31, 2020 2019 2020 2019 (Dollars in thousands) (Dollars in thousands) Net income 23,532 14,127 101,806 93,543 Adjusted for: Interest expense, net (including amortization of deferred 18,891 17,24

  27. Slide 27: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Year Ended December 31 2020 2019 2018 2017 2016 2015 2014 Cash and cash equivalents and Restricted cash (in millions $) Cash and cash equivalents 448 71 99 48 230 186 40 Restricted cash and cash equivalents 89 82 79 49 34 50 93 537 153 178 97 264 235 133

  28. Slide 28: Air-Cooled Binary Geothermal Power Plant

    AIR-COOLED BINARY GEOTHERMAL POWER PLANT Copyright © 2021 Ormat Technologies, Inc. 28

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