Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Presentation (May 2021)

31 slides from Ormat Technologies's investor presentation, May 2021

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

    ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MAY 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 with a Proven Track Record

    A LEADING RENEWABLE over Own & operate ENERGY PROVIDER 55 1,015MW WITH A PROVEN TRACK RECORD Years of experience Geothermal, Storage, Solar PV & REG(1) IN GEOTHERMAL AND ENERGY STORAGE 1,400 $ 705M Employees 2020 revenues $ 420M $ 86M 2020 adj. EBITDA(2) 2020 Net income(3) (1) REG – Recovered Energy

  5. Slide 5: Our Business Segments

    OUR BUSINESS SEGMENTS 87% 5% 8% of Q1 2021 of Q1 2021 of Q1 2021 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

  6. Slide 6: Our Core Competencies

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

  7. Slide 7: Electricity Segment Overview

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

  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 4,115 30MW/120MW 10MW/10MW 3,705 h h 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

  11. Slide 11: Strong Tailwinds for Renewable Energy and Energy Storage

    STRONG TAILWINDS FOR RENEWABLE ENERGY AND ENERGY STORAGE Governments around the world continue to support renewable energy Current U.S. administration: Calling to invest in infrastructure, particularly for clean energy, and energy storage Proposing a ten-year extension and phase down of an expanded

  12. Slide 12: Ormat's Growth Drivers

    ORMAT’S GROWTH DRIVERS Copyright © 2021 Ormat Technologies, Inc. 12

  13. Slide 13: Robust Growth Plan: 1,455MW - 1,575MW by YE 2023

    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

  14. Slide 14: 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

  15. Slide 15: 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 8 Q2 2021  GEOTHERMAL Expansion 10 PROJECTS U.S. - Puna expansion 8 2023/TBU Suspended 143-148 MW U.S - Dixie Meadows 15 2022  U.S - Tungsten

  16. Slide 16: Energy Storage Projects Under Development

    10MW/40MW Vallecito project started operation in April 2021 Projected Expected Type of Project Capacity COD contract (MW) Capacity PPA CA - Tierra Buena 5 Q4 2021 and Merchant ENERGY STORAGE TX - Upton 25 Q4 2021 Merchant ENERGY 4 PROJECTS STORAGE 57 MW NJ - Andover 20 Q1 2022 Merchant PROJECTS UNDE

  17. Slide 17: Energy Storage Pipeline

    2 GW 40 200MW - 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: Growth: MW and Adjusted EBITDA Expectations

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

  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) Geothermal REG Solar Storage Electricity segment Product segment Energy Storage 1,005 931 957 $693 $719 $746 $705 795 $663 713 857 854 872 742 660 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Electricity segment gro

  22. Slide 22: Strong Financial Positioning: Debt and Leverage

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)(1) Project Finance Corporate Debt $1,456 $1,428 $1,090 $1,085 $1,268 $1,238 $919 $936 $817 $914 795 784 509 522 305 759 716 661 644 609 2017 2018 2019 2020 March 31, 2017 2018 2019 2020 March 31, 2021 2021 Net Debt to Capitalization (Total E

  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, consistent the U.S. supported by strong returns for shareholders Domestic growth favorable regulatory dynamics International geothermal Pure-play re

  25. Slide 25: Appendix

    APPENDIX Copyright © 2021 Ormat Technologies, Inc. 25

  26. Slide 26: Reconciliation of EBITDA and Adjusted EBITDA (Cont'd)

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (CONT’D) The following table reconciles net income to EBITDA and Adjusted EBITDA for the twelve-month periods ended December 31, 2020, 2019, 2018, 2017, 2016 and 2015. Year Ended December 31, 2020 2019 2018 2017 2016 (Dollars in thousands) Net income 101,

  27. Slide 27: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA Three Months Ended March 31 2021 2020 (Dollars in thousands) Net income 17,829 29,906 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 18,753 16,871 Income tax provision (benefit) 3,007 18,148 Adjustment to investme

  28. Slide 28: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Three Months Year Ended December 31 Ended March 31, 2021 2020 2019 2018 2017 2016 Cash and cash equivalents and Restricted cash (in millions $) Cash and cash equivalents 377 448 71 99 48 230 Marketable Securities at fair value 28 Restricted cash and cash

  29. Slide 29: Air-Cooled Binary Geothermal Power Plant

    AIR-COOLED BINARY GEOTHERMAL POWER PLANT Copyright © 2021 Ormat Technologies, Inc. 29

  30. Slide 30: Expected Capital Needs for the Remaining of 2021

    EXPECTED CAPITAL NEEDS FOR THE REMAINING OF 2021 CAPITAL NEEDS ($M) Construction & Enhancements – fully released 200 Development enhancement and Exploration – not yet released 78 Maintenance CapEx (including drilling in Puna) 33 Storage activity 36 Enhancement of the production facilities 13 Total C

  31. Slide 31: Products Segment Third-Party Backlog

    1% 2% PRODUCTS 10% SEGMENT Germany 27% THIRD-PARTY Guatemala BACKLOG(1) Taiwan 14% $37.2M Chile NZ Others 99% Turkey Geothermal CONTRACTS GEOGRAPHIC contracts BREAKDOWN 24% 22% Copyright © 2021 Ormat Technologies, Inc. 31 Backlog as of May 5, 2021. The backlog includes revenues for the period betwee

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