Slide 1: Ormat Technologies, Inc. Earnings Call
ORMAT TECHNOLOGIES, INC. EARNINGS CALL
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 These forward-looking statements are not intended to be a guarantee of future results, but instead This presentation, and informati
Slide 3: Q1 2024 Earnings Call Agenda
Q1 2024 EARNINGS CALL AGENDA 01 02 03 04 Delivering strong Improving our Advancing profitable Remaining committed financial performance portfolio growth to a sustainable future COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 3
Slide 4: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 4
Slide 5: Solid Financial Performance
SOLID FINANCIAL PERFORMANCE Highlights Revenues Gross margin Adjusted EBITDA(1) EPS/Adj. EPS $224.2M 35.2% $141.2M $0.64/$0.65 +21.0% -590 bps +14.4% +25.5% / +27.5% Revenue by segment Electricity Products Storage 85% 11% $191.3M $24.8M $8.1M Electricity Products +12.3% +147.3% +65.6% 4% Storage (1)
Slide 6: Solid Financial Performance: Margin and EBITDA by Segment
SOLID FINANCIAL PERFORMANCE Gross Margin by segment Total Electricity Products Energy Storage 35.2% 39.0% 14.8% 7.5% -590 bps -540 bps +790 bps +1,110 bps Adjusted EBITDA1 by segment Total Electricity Products Energy Storage 92% 5% $141.2M $130.7M $6.8M $3.7M Electricity Products +14.4% +8.2% +256.1
Slide 7: Regulatory Environment: Financial Impact of IRA
REGULATORY FINANCIAL IMPACT OF IRA ENVIRONMENT Income attributable to sale of tax benefits1 Q1 2024 2024 outlook Income tax line - $38 million 17.5 benefit that will be recorded 12.6 4.4 proportionally throughout the 1.8 year. $11.5 million was recorded 10.8 13.1 in Q1 2024 Q1 2023 Q1 2024 Cash bene
Slide 8: Cash and Net Debt
CASH AND NET DEBT Successfully raised Net Debt1 ($M) $ 335M Cash and Cash Equivalents and restricted cash of new debt in 3 and Cash Equivalents ($M) Q1 2024 $2,062 115 9 $275 4.6% $ $ Non- $ 330 Controlling $1,801 Cash from & Others Average operating $103 interest rate activities Acquisition on our
Slide 9: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH Access to multiple sources of liquid capital 4.1x Net debt to Adj. EBITDA2 $472M $765.5M Expected CapEx Total for Q2-Q4 20241 liquidity3 45% Net debt to Raised $30M project finance loan capitalization2 after quarter-end (1) For deta
Slide 10: Electricity update
Electricity update Product backlog Energy storage COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 10
Slide 11: Electricity Operation
ELECTRICITY OPERATION Global portfolio reached 1,225MW 1,2 Robust and balanced portfolio 1 945 MW 3 33 MW 5 150 MW 10MW added U.S. Honduras Kenya from CODs completed for solar assets 4MW - Steamboat Hills Solar 2 40 MW 4 15 MW 6 42 MW 1 6MW - North Valley Solar Guatemala Guadeloupe Indonesia 100MW a
Slide 12: Electricity Operation Updates
ELECTRICITY OPERATION UPDATES Puna, Hawaii Olkaria, Kenya Caribbean Average generation in last Current capacity stands at Dominica & Guadeloupe two quarters is 30MW approx. 130MW each signed PPA's for new 10MW power plant New PPA approved by Positive results in drilling Expects CODs by YE 2025 HPUC1
Slide 13: Acquired Assets
Cove Fort, UT I ACQUIRED ASSETS $ 9.4M $ 7.1M Revenues EBITDA 17MW upgrade to the geothermal projects is underway Geothermal CT Identified new potential opportunities that Solar PV CA NV UT we are currently evaluating Greenfield COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 13 13
Slide 14: Product Backlog
PRODUCT BACKLOG TAOM, NZ 28MW 3RD PARTY CONTRACTS $ 130M 11.3% 6% Backlog1 Decrease vs. 2% Q1 2023 81% 4% 3% 3% 1% 94% ~$ 3M Geothermal New contracts contracts and orders signed in 2024 Geographic Breakdown New Zealand Guatemala Indonesia 2 Turkey USA Other Taiwan 1) Backlog as of MAY 8, 2024. The b
Slide 15: Energy Storage Operation
ENERGY STORAGE OPERATION Q1 2024 Storage revenues breakdown ($millions) Merchant Fixed revenues 5.8 0.2 0.8 3.0 0.1 2.3 1.1 4.8 1.8 - 1.8 1.7 2.3 Q1 23 Q1 24 Q1 23 Q1 24 East Coast California Texas East Flemington COD 1 55MW/180MWh 3 33MW/33MWh 20 MW/ 20 MWh, East Coast in NJ CA TX Contributed ~$ to
Slide 16: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 16
Slide 17: Robust Growth Plan
ROBUST GROWTH PLAN 2.1GW – 2.3GW 92% - 103% 2026 portfolio target Expected MW growth vs driven by successful 2023 expansion efforts Significantly Accelerate increase solar storage capacity & geothermal to establish leading position in the U.S. capacity storage sector This growth plan is subject to o
Slide 18: 2026 Growth Target by Segments
2026 GROWTH TARGET CD4 part of Mammoth complex, CA, USA 65MW BY SEGMENTS GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE YE 2026 TARGET 1,450MW-1,470MW 700MW-800MW/ 1.9 GWh-2.3 GWh MW ADDITION (VS END OF 2023) 335W-355MW 530MW-630MW MW GROWTH 30%-32% 312%-370% Change in MW growth is compared to a 1,115MW G
Slide 19: Geothermal Development
GEOTHERMAL DEVELOPMENT North Valley, NV, USA 25MW Projected Expected Project PPA Capacity (MW) COD U.S – Beowawe Repowering 6 Q3 2024 ✓ Guatemala – Zunil 5 Q4 2024 ✓ Under development: Indonesia – Ijen 15(1) Q4 2024 ✓ 131MW Guadeloupe- Bouillante 10 Q4 2025 ✓ from Dominica 10 Q4 2025 ✓ 11 projects N
Slide 20: Solar Development
SOLAR DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD U.S. – Steamboat Hills Solar 4 ✓ Under development: U.S. – North Valley Solar 6 ✓ 62 MW U.S. – Beowawe Solar* 6 Q4 2024 ✓ from 3 projects U.S. – Arrowleaf 42 H1 2025 ✓ U.S. – McGinness Hills Solar 14 H2 2026 ✓ * Start of operation is
Slide 21: Energy Storage Development
ENERGY STORAGE DEVELOPMENT Stryker storage facility, NJ, USA 20MW/20MWh Projected Projected Expected Project Capacity ITC %1 PPA MWh COD (MW) NJ – East Flemington 20 20 30% Merchant Under development: CA – Bottleneck 80 320 40% Q2 2024 Full Tolling 335 MW/ NJ – Montague 20 20 30% Q1 2025 Merchant 1,
Slide 22: Energy Storage Pipeline
ENERGY STORAGE PIPELINE Rabbit Hill storage facility, TX, USA 10MW/10MWh ~3.8GW/14.2GWh 36 potential capacity of named U.S. storage pipeline prospects GEOGRAPHICAL Others 150 BREAKDOWN (MW) Texas 425 WECC 505 1 East Coast 595 California 2,125 1) East coast market includes PJM, ISO-NE, NYISO and SERC
Slide 23: 2024 Guidance ($M)
2024 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA 860-910 710-730 115-135 35-45 515-545 +7% +8% -7% +38% +10% 2.1GW-2.3 GW TRANSITIONING TO ACCELERATED +19%-21% GROWTH 1.3 GW CAGR 2023-2026E IN STORAGE & ELECTRICITY 1.1 GW 1.16 GW SEGMENTS Storage Solar Geothermal 20
Slide 24: Summary: Strengthening the Foundation, Preparing for Faster Growth
SUMMARY: STRENGTHENING THE FOUNDATION, PREPARING FOR FASTER GROWTH Executing on our Strong growth plans tailwinds added 130 MW since support demand for geothermal the beginning of 2024 and energy storage and increase demand and prices from data centres Delivered strong Improved profitability in Q1 2
Slide 25: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 25
Slide 26: ESG Highlights – 2022 Report: Environment
ESG HIGHLIGHTS – 2022 REPORT 2.2 M tCO2e AVOIDED emissions compared to ENVIRONMENT the local grid, only in 2022 19% Absolute reduction in Scope 1 and 2 GHG emissions compared with 2019 baseline 25% Reduction in GHG emissions intensity (tCO2e/MWh) compared with 2019 baseline 30% Women in VP-level 25.
Slide 27: ESG Highlights: Governance
ESG HIGHLIGHTS COMMITMENT TO UPHOLDING GOVERNANCE THE HIGHEST STANDARDS ACROSS THE ORGANIZATION Our corporate governance practice is defined by honesty, openness and fairness We are constantly improving our governance and our level of disclosure on related topics, such as anti- corruption, executive
Slide 28: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 28
Slide 29: Committed to Continued Profitable Growth
COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM
Slide 30: Payment of Principal Due by Period ($M)
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M) AVERAGE INTEREST RATE: 4.57% ($ millions) Q2-2024 Q3-2024 Q4-2024 Year 2024 Long-Term non-recourse & limited recourse debt 13.3 13.6 19.1 46.0 Long Term Loans Full Recourse 50.9 38.1 23.8 112.8 Finance Liability - 2.7 - 2.7 Total $64.2 $54.4 $42.9 $161.5 Remai
Slide 31: CapEx for 2024
CAPEX FOR 2024 ACTUAL INVESTED TOTAL CAPEX TOTAL CAPEX ($M) IN Q1 2024 FOR Q2-Q4 2024 FOR 2024 Electricity Segment 84 254 338 Construction & Enhancements – fully released 37 148 184 Development enhancement, drillings and Exploration 31 57 88 Maintenance CapEx 16 50 66 Storage Segment 13 196 209 Prod
Slide 32: P&L Highlights
P&L HIGHLIGHTS Q1 2024 Q1 2023 Change (%) GAAP MEASURES Revenues ($M) Electricity 191.3 170.3 12.3 % Product 24.8 10.0 147.3 % Energy Storage 8.1 4.9 65.6 % Total Revenues 224.2 185.2 21.0 % Gross Profit ($ millions) 78.8 76.1 3.6 % Gross margin (%) Electricity 39.0% 44.4 % -540 bps Product 14.8% 6.
Slide 33: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Ended March 31, 2024 2023 Net income 40,350 33,461 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 29,129 21,780 Income tax provision (benefit) (147) 8,885 Adjustment to investme
Slide 34: Reconciliation of Adjusted Net Income and Adjusted EPS
RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS AND ADJUSTED EPS Three Months Ended March 31, 2024 2023 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders 38.6 29.0 M&A costs 1.0 - Adjusted Net income attributable to the Company'
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES March 31, 2024 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 202 Restricted cash and cash equivalents 97 Total cash and cash equivalents, marketable securities and Restricted cash (in milli