Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Presentation (March 2023)

38 slides from Ormat Technologies's investor presentation, March 2023

  1. Slide 1: Ormat Technologies, Inc. Investor Presentation March 2023

    ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MARCH 2023 Copyright Copyright©©2023 2023Ormat 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 © 2023 Ormat Technologies, Inc. 3

  4. Slide 4: A Leading Renewable Energy Provider

    A LEADING RENEWABLE over Own & operate ENERGY PROVIDER 55 ~1.16GW WITH A PROVEN TRACK RECORD Years of experience Geothermal, Storage, Solar PV & REG(1) IN GEOTHERMAL AND ENERGY STORAGE 1,480 $ 734M Employees 2022 revenues $ 436M $66M 2022 adj. EBITDA(2) 2022 Net income(3) (1) REG – Recovered Energy

  5. Slide 5: Our Business Segments

    OUR BUSINESS SEGMENTS 86% 10% 4% Of 2022 of 2022 of 2022 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: Electricity

    ELECTRICITY Generates firm & flexible power Copyright © 2023 Ormat Technologies, Inc. 6

  7. Slide 7: Electricity Segment Overview

    ELECTRICITY SEGMENT OVERVIEW 5 4 Diversified 1 2 3 portfolio 6 73% 27% U.S. International 2022 01 U.S. 02 Guatemala 03 Honduras Geographic 785 MW 40 MW 38 MW breakdown 05 Kenya of revenues 04 Guadeloupe 06 Indonesia 15 MW 150 MW 42 MW(1) $632 $586 Global operation $510 $540 $541 $466 92% geothermal;

  8. Slide 8: Geothermal Market

    GEOTHERMAL MARKET Ormat -the 2nd largest geothermal owner & operator(1) 1,200 1,000 800 600 400 200 0 ~16 GW Global Installed geothermal capacity (2) 9x Global Potential vs. Installed(2) EU Africa ASIA Oceania U.S LATAM Installed 3.6 0.9 4.9 1.0 3.7 1.7 Potential 7.2 5.1 74.3 3.6 35.0 36.4 1. Source

  9. Slide 9: New PPAs for up to 285MW

    NEW PPAS FOR UP TO 285MW 2 PPAs 1 PPA With NV Energy(1) With California Community Power For up to 130-160MW For up to 125MW(3) Covers new projects in Nevada Cover new projects and and California renewal of PPAs in Nevada 25MW 105-135MW Up to 125MW North Valley Portfolio PPA Portfolio PPA COD(2) – en

  10. Slide 10: Inflation Reduction Act Strong Tailwind

    STRONG TAILWIND INFLATION REDUCTION ACT ON AUGUST 16, 2022, IRA SIGNED INTO LAW PTC ITC Benefits to the Benefits to the Storage Geothermal Assets Assets PTC tax equity transaction ITC sale reduces tax EBITDA impact over up-to expenses and boosts EPS 10 years $150M cash that reduces capital needs Cop

  11. Slide 11: Ormat's Development in Indonesia

    ORMAT’S DEVELOPMENT IN INDONESIA 12.75% SARULLA TOKA TINDUNG #1 4th ownership 42MW Under development: Largest Largest in operation initial drilling economy in country in the 75- Southeast Asia1 world 2 100% ownership BBB/Baa2 ~33GW 100% Country’s 2020 electricity ownership rating by S&P production4

  12. Slide 12: Storage

    STORAGE Enables stability of the grid and flexibility Copyright © 2023 Ormat Technologies, Inc. 12

  13. Slide 13: Steep Market Growth Trajectory

    STEEP MARKET GROWTH TRAJECTORY 58,965 U.S. FTM storage is expected to reach 59 GW in 2026 46,084 26x from 2020 54 32,604 % of projected growth from California & Texas 19,689 9,671 5,185 1,092 2,201 2019 2020 2021 2022 2023E 2024E 2025E 2026E California Texas Nevada Arizona Hawaii New York PJM (& NJ)

  14. Slide 14: Regulatory and Policy Drivers

    REGULATORY AND POLICY DRIVERS State-level Energy Storage Targets CPUC1: Oregon Nevada New York Maine Massachusetts Procure additional 15 GW 10 MWh(2) 1 GW 6 GW 400 MW 1 GW by by 2030 by 2030 by 2030 YE 2025 of new storage and demand response 9 states have energy resources by 2032 storage targets IRA

  15. Slide 15: Storage Segment

    STORAGE SEGMENT Current operating capacity 88MW/196MWh 01 CA (3 facilities) 02 TX 35MW/140MWh 10MW/10MWh TARGET THE LARGEST AND MOST 1 LUCRATIVE MARKETS: 03 NJ (2 facilities) 04 VT California, Texas, and PJM 41MW/41MWh 2MW/5MWh 4 FOCUS ON STANDALONE ENERGY 1 3 2 STORAGE Providing ancillary service,

  16. Slide 16: Product

    PRODUCT Vertical integration advantage Copyright © 2023 Ormat Technologies, Inc. 16

  17. Slide 17: Product Segment Overview

    PRODUCT SEGMENT OVERVIEW Primary provider of geothermal binary plants Suppliers of geothermal power plants 2018 – 2022 capacity, MW Market leader Built approx. 190 power plants and installed approx. 61% 73% 3,200 MW of geothermal & REG over the years Binary Ormat 1837 MW BINARY TOTAL 3rd parties’ ba

  18. Slide 18: Ormat's Growth Drivers

    ORMAT’S GROWTH DRIVERS Copyright © 2023 Ormat Technologies, Inc. 18

  19. Slide 19: Robust Growth Plan

    Significantly increase solar and geothermal capacity Accelerate storage capacity to establish ROBUST leading position in the U.S. storage sector GROWTH PLAN YE 2025 portfolio target: 1.8 GW - 1.86 GW Total expected MW growth vs 2022: ~ 55%-60% This growth plan is subject to obtaining all permits and

  20. Slide 20: 2025 Growth Target by Segments

    2025 GROWTH GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE TARGET BY SEGMENTS (VS 2022) YE 2025 TARGET 1,300MW-1,330MW 500MW-530MW 1,070 MWh-1,140 MWh MW ADDITION 230MW-260MW 412MW-442MW MW GROWTH 21%-24% 468%-502% Change in MW growth is compared to a 1,070MW Geothermal & Solar portfolio and a 88 MW stora

  21. Slide 21: Geothermal Projects Under Development

    Projected Expected Project PPA Capacity (MW) COD U.S - North Valley 25 Q1 2023  U.S. – Dixie Valley 6 Q2 2023  U.S - Heber Complex 8 Q2 2023  Guatemala - Zunil 5 H2 2023  GEOTHERMAL U.S – Beowawe Repowering 6 Q3 2024  4 PROJECTS GEOTHERMAL 44 MW Indonesia - Ijen 15(1) Q4 2024  PROJECTS UNDER B

  22. Slide 22: Solar Projects Under Development

    Projected Expected Project Capacity PPA COD (MW) U.S. - Brady Solar 6 Q1 2023  U.S. - Steamboat Solar 7 Q2 2023  SOLAR 4 PROJECTS U.S. – North Valley Solar 6 Q3 2023  23 MW AC U.S. – Steamboat Hills Solar 4 Q3 2023 BY YE 2023  U.S. – Beowawe Solar 6 H1 2024  SOLAR ENERGY U.S. – McGinness Hills

  23. Slide 23: Energy Storage Projects Under Development

    Projected Projected Expected Project Capacity PPA MWh COD (MW) TX - Upton 25 25 Q1 2023 Merchant NJ - Andover 20 20 Q1 2023 Merchant NJ - Howell 7 7 Q1 2023 Merchant Fixed ENERGY OH – Bowling Green 12 12 Q1 2023 prepayment STORAGE and Merchant 6 PROJECTS CA – Pomona 2 20 40 Q3 2023 Capacity PPA and

  24. Slide 24: Energy Storage Pipeline

    ~3GW 34 104MW/124MWh potential capacity of named expected addition U.S. storage pipeline prospects by YE 2023 Hawaii East Coast WECC ENERGY Texas STORAGE California PIPELINE Copyright © 2023 Ormat Technologies, Inc. 24

  25. Slide 25: Growth

    GROWTH (2) Total revenues Electricity revenues Products revenues Storage revenues Adjusted EBITDA $823M-$858M $670M-$685M $120M-$135M $33M-$38M $480M-$510M +12%-17% +6%-8% +68%-89% +7%-23% +10%-17% 1.8-1.86 16-17% GW CAGR 1.1 1.16 GW GW 2021 Actual 2022 Actual 2025 Expected Electricity capacity Sola

  26. Slide 26: Geothermal Prospects

    Region Location # of sites Nevada 20 California 3 U.S. Oregon 2 Utah 2 New Mexico 1 GEOTHERMAL Guatemala 2 39 PROSPECTS CENTRAL AMERICA GEOTHERMAL Honduras 1 PROSPECTS AFRICA Ethiopia 4 Madagascar 1 New Zealand 1 ASIA PACIFIC Indonesia 2 Copyright © 2023 Ormat Technologies, Inc. 26

  27. Slide 27: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Copyright © 2023 Ormat Technologies, Inc. 27

  28. Slide 28: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Installed capacity growth (MW) Revenue growth ($m) Geothermal REG Solar Storage Electricity segment Product segment Energy Storage 1,158 1,095 1,005 931 957 $719 $746 $734 $705 $663 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Adjusted EBITDA growth ($m) $420 $436 $

  29. Slide 29: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)(1) $2,027 $1,800 $1,908 $1,521 $1,456 $1,268 $1,238 $1,090 $1,085 $919 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (Total Equity) (1) Net Debt to Adjusted EBIT

  30. Slide 30: ESG Initiatives

    ENVIRONMENT GOVERNANCE ESG INITIATIVES Strengthening our ESG commitments Building our approach and policy on significant valuable issues We issued our ESG report, the fourth in SOCIAL accordance with GRI standards and the second according to SASB framework. 22% Absolute reduction in scopes 1&2 emiss

  31. Slide 31: 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

  32. Slide 32: Appendix

    APPENDIX Copyright © 2023 Ormat Technologies, Inc. 32

  33. Slide 33: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA The following table reconciles net income to EBITDA and Adjusted EBITDA for the years ended December 31, 2022, 2021, 2020, 2019,, and 2018. Year Ended December 31, 2022 2021 2020 2019 2018 (Dollars in thousands) Net income 77,795 76,077 101,806 93,543 110

  34. Slide 34: Reconciliation of EBITDA and Adjusted EBITDA (Dollars in Thousands)

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Twelve-Months Ended Dec 31, Ended Dec 31, 2022 2021 2022 2021 Net income 20,230 22,273 77,795 76,077 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 22,604 22,252 84,326 80,534 I

  35. Slide 35: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Year Ended December 31 2022 2021 2020 2019 2018 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 96 239 448 71 99 Marketable Securities at fair value - 43 Restricted cash and cash equivalents

  36. Slide 36: CAPEX for 2023

    CAPEX FOR 2023 ACTUAL INVESTED TOTAL CAPEX ($M) IN 12 MONTHS 2022 FOR 2023 Electricity Segment 451 386 Construction & Enhancements – fully released 266 172 Development enhancement, drillings and Exploration 50 101 Puna restoration (including drilling) 53 21 Olkaria recovery, partially released for c

  37. Slide 37: Products Segment Third-Party Backlog

    50% 22% PRODUCTS New Zealand SEGMENT Indonesia Philippines THIRD-PARTY Guatemala 8% BACKLOG(1) USA IL $148.1M 5% Germany Taiwan 3% CONTRACTS GEOGRAPHIC Others 94.7% 3% BREAKDOWN 2% Geothermal contracts 2% 5% Copyright © 2023 Ormat Technologies, Inc. 37 1) Backlog as of February 22, 2023. The backlog

  38. Slide 38: Air-Cooled Binary Geothermal Power Plant

    AIR-COOLED BINARY GEOTHERMAL POWER PLANT Copyright © 2023 Ormat Technologies, Inc. 38

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