Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Presentation (December 2020)

31 slides from Ormat Technologies's investor presentation, December 2020

  1. Slide 1: Ormat Technologies Inc. Investor Presentation

    ORMAT TECHNOLOGIES INC. INVESTOR PRESENTATION DECEMBER 2020 Copyright Copyright©©2020 2020Ormat OrmatTechnologies, Technologies,Inc. Inc.

  2. Slide 2: Safe Harbor Statement

    SAFE HARBOR STATEMENT 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 amounts for 2022 growth (MW) or 2022 operational performance metrics such

  3. Slide 3: Non-GAAP Metrics

    NON-GAAP METRICS Reconciliation to US GAAP Financial Information This presentation includes certain “non-GAAP financial measures” within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended, including EBITDA and Adjusted EBITDA. The presentation of these non-GAAP financi

  4. Slide 4: Introduction

    INTRODUCTION Copyright © 2020 Ormat Technologies, Inc. 4

  5. Slide 5: Introduction to Ormat

    INTRODUCTION TO ORMAT Market leader with proven track record in the geothermal energy sector Our mission is to become a leading global renewable energy provider Own & operate 55years ~1,410 933MW of experience Employees Generating Capacity 746$M FY2019 revenues 73MW/136MWh of operating storage proje

  6. Slide 6: Leading Vertically Integrated Geothermal Company

    LEADING VERTICALLY INTEGRATED GEOTHERMAL COMPANY Electricity Product Energy Storage & Storage Electricity Product Management Services  Develop, build, own and operate  Design, manufacture and sell  Growing to become a significant player geothermal, solar and recovered equipment for geothermal and

  7. Slide 7: Leading Vertically Integrated Geothermal Company

    LEADING VERTICALLY INTEGRATED GEOTHERMAL COMPANY 1 2 3 Energy Storage & Electricity Product Management Services % contribution 72% 26% 2% of 2019 revenue % contribution of 2019 gross 84% 17% n.a. 2 profit1 US International 16% Geographic 38% US International contribution3 International 62% 84% US 7%

  8. Slide 8: Electricity Segment Overview

    ELECTRICITY SEGMENT OVERVIEW Profitable growing portfolio with visible cash generating assets Geographic potential for geothermal • Global operation of 933 MW at 25 sites Installed • Weighted average PPA life: 17 years1 Potential Europe 3.4 GW Europe 7.2 GW Asia pacific Asia pacific 4.7 GW 74.3 GW U

  9. Slide 9: Product Segment Overview

    PRODUCT SEGMENT OVERVIEW Provides flexibility to allocate manufacturing capacity to grow organically Suppliers of geothermal power plants (2015 – 2019 capacity, • Built approx. 190 power plants and installed MW) approx. 3,200 MW of geothermal & REG over the Ormat Fuji 414MW years represents ~72% of

  10. Slide 10: Energy Storage & Management Services Overview

    ENERGY STORAGE & MANAGEMENT SERVICES OVERVIEW Establishing strong market position in the storage market Growth in U.S. energy storage – incremental capacity (MW) • Operating portfolio of 6 assets with 6,062 capacity of 73 MW / 136 MWh and two more assets underway 5,260 • Recently acquired the Pomona

  11. Slide 11: Ormat's Growth Drivers

    ORMAT’S GROWTH DRIVERS Copyright © 2020 Ormat Technologies, Inc. 11

  12. Slide 12: Consistent Track Record of Strong Returns for Shareholders

    CONSISTENT TRACK RECORD OF STRONG RETURNS FOR SHAREHOLDERS Key accomplishments Portfolio growth Expansion into new areas Strong financial position • Organic growth • Built the storage • Strengthened the • Geographic expansion portfolio balance sheet • M&A • M&A • Improved margins • Extension into ot

  13. Slide 13: Robust Growth Potential

    ROBUST GROWTH POTENTIAL Increasing solar and geothermal capacity significantly and more than doubling storage capacity to establish market leadership in the sector Solar & Geothermal Storage Up to 40 MW 1,113 MW U.S. solar / geothermal Hybrid Up to 180 MW 933 MW Up to 140 MW U.S. & international geo

  14. Slide 14: Geothermal and Solar Asset Growth in the U.S. Supported by Favorable Regulatory Dynamics

    GEOTHERMAL AND SOLAR ASSET GROWTH IN THE U.S. SUPPORTED BY FAVORABLE REGULATORY DYNAMICS Upcoming MW by 2022 Supportive regulatory framework(1) Projected Location Capacity Geothermal Projects California 41 MW Nevada 49-54 MW Hawaii 8 MW Unspecified 10-30 MW Total 110-130 MW Solar Projects States wit

  15. Slide 15: International Geothermal Growth to Displace Existing Coal Generation

    INTERNATIONAL GEOTHERMAL GROWTH TO DISPLACE EXISTING COAL GENERATION Electricity generation by source (2019) Coal &Oil Natural gas Renewables • 10 MW Guadeloupe project to be 16% 21% built by 2022 42% 21% 21% • Indonesia is a key market for 82% 81% international growth beyond 2022 19% • Future prosp

  16. Slide 16: Growth in Energy Storage

    GROWTH IN ENERGY STORAGE Ormat energy storage development timeline State-level support for energy storage Tierra Buena and other 250 future developments Up to 175MW Oregon utilities to Nevada proposed New York Massachusetts set deploy 5 MW a 1 GW target approved a 3 GW a 1 GW target by each by 2020

  17. Slide 17: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Copyright © 2020 Ormat Technologies, Inc. 17

  18. Slide 18: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Strong financial Innovative Robust growth ESG positioning potential Copyright © 2020 Ormat Technologies, 18 Inc. 18

  19. Slide 19: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Installed capacity growth (MW) Revenue growth ($m) Electricity segment Product segment Other 910 914 933 $719 $746 $718 795 $663 $693 697 713 $595 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 LTM LTM Electricity segment gross margin (%) Adjusted EBITDA gro

  20. Slide 20: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)(1) $1,453 $1,268 $1,238 $1,164 $1,090 $1,085 $920 $939 $914 509 779 522 $817 280 273 $685 $674 305 666 759 716 675 640 609 2015 2016 2017 2018 2019 Q3 2020 2015 2016 2017 2018 2019 Q3 2020 Project Finance Corporate Debt Net Debt(1) to Capita

  21. Slide 21: Pure-Play Renewables Platform Aligned with ESG Principles

    PURE-PLAY RENEWABLES PLATFORM ALIGNED WITH ESG PRINCIPLES Singular focus on renewables Publish annual Corporate Sustainability Report 100% local employment at operational facilities Ormat CO2 emissions are much lower than alternative resources (mm)1 7.6 tons of CO2 5.4 tons of CO2 3.2 tons of CO2 0.

  22. Slide 22: Robust Growth Profile

    ROBUST GROWTH PROFILE Well positioned as a market leader with strong cash flows and balance sheet to pursue growth Sustainable growth from identified projects and global regulatory Geothermal potential of more support than 10x installed capacity Primary growth regions over the next 5 years Binary sh

  23. Slide 23: Attractive Investment Thesis

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

  24. Slide 24: Appendix

    APPENDIX Copyright © 2020 Ormat Technologies, Inc. 24

  25. Slide 25: Air-Cooled Binary Geothermal Power Plant

    AIR-COOLED BINARY GEOTHERMAL POWER PLANT Copyright © 2020 Ormat Technologies, Inc. 25

  26. Slide 26: Upcoming Projects

    UPCOMING PROJECTS Upcoming projects through 2022 Projected Project Expected COD PPA Capacity (MW) Geothermal Projects U.S - Heber Complex 11 End 2021  U.S - CD4 30 End 2021  U.S - North Valley 15-20 2022 U.S - McGinness Hills Expansion 8 2021  U.S. – Puna expansion 8 2022  U.S – Dixie Meadows 15

  27. Slide 27: Ormat Growth Plans After 2022

    ORMAT GROWTH PLANS AFTER 2022 Binary share in the geothermal market is expected to increased by ~80% in the next 10 years Primary growth regions • US 30,000 Other1 Binary • Indonesia 25,479 • Kenya 25,000 21,375 22,578 23,935 • Ethiopia 18,438 19,326 20,298 9,708 Capacity (MW) • Turkey 20,000 17,623

  28. Slide 28: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FOR THE THREE AND NINE-MONTHS PERIODS ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED) We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation an

  29. Slide 29: 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, 2019, 2018, 2017, 2016 and 2015. Year Ended December 31, 2019 2018 2017 2016 2015 (Dollars in thousands) Net income 93,543 110

  30. Slide 30: 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 last twelve-month periods ended September 30, 2020 Three months ended Nine months ended Twelve months ended December 31, 2019 September 30, 2020 September 30, 2020 Ne

  31. Slide 31: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Sept. 30, 2020 Dec. 31, 2019 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2016 Dec. 31, 2015 Cash and cash equivalents and restricted cash (in millions $) Cash and cash equivalents 197 71 99 48 230 186 Restricted cash and cash equivalents 92 82 79 49 34 50 Total

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