Slide 1: Ormat Technologies, Inc. Investor Presentation
ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION SEPTEMBRE 2024
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
Slide 3: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 3 3
Slide 4: A Leading Renewable Energy Provider
A LEADING RENEWABLE CD4, Mammoth Complex, NV, USA, 65MW ENERGY PROVIDER WITH A PROVEN TRACK RECORD IN GEOTHERMAL AND ENERGY STORAGE Over Own & Operate 55 1.4GW ~ 1,600 Years of Geothermal, Storage, Employees experience Solar PV & REG1 $ 829M $ 482M $ 124M 2023 revenues 2023 adj. EBITDA2 2023 Net inc
Slide 5: Our Business Segments
OUR BUSINESS SEGMENTS 80% 16% 4% Of 2023 Of 2023 Of 2023 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 in the energy-based (
Slide 6: 2024 Highlights
2024 HIGHLIGHTS 136MW 187MW 435MW/1,240MWh 397M New capacity added in Electricity under Energy storage Capital raised in H1 H1 2024 construction & under construction & 20242 development development Electricity – 16MW Geothermal – 125MW Texas – 220MW/440MWh $232M corporate debt Organic and M&A 100MW1
Slide 7: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH Access to multiple sources of liquid capital 4.2x Net debt to Adj. EBITDA2 $292M $653.8M Expected CapEx Total for Q3-Q4 20241 liquidity3 47% Net debt to Expanded convertible bonds by $45.5 capitalization2 million through new issuanc
Slide 8: Overview, U.S. Geothermal Market, New Zealand & Indonesia, Growth Targets
Overview U.S. Geothermal Market New Zealand & Indonesia Growth Targets COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 8 8
Slide 9: Overview
OVERVIEW Generates firm & flexible power Diversified portfolio 2022 revenue geographic breakdown 1 950MW U.S. 3 33MW Honduras 5 150MW Kenya 1,230MW 77% U.S. 23% International Geothermal, 2 40MW 4 15MW 6 42MW1 Solar PV & REG Guatemala Guadeloupe Indonesia 92% Growing Profitable portfolio3 Geothermal
Slide 10: Geothermal Market
GEOTHERMAL MARKET 2nd Largest geothermal owner & operator1 STAR ENERGY PERTAMINA ORMAT CALPINE² CONTACT MERCURY KENGEN ABOITIZ ENEL EDC CFE ~ 16.3GW Ring of fire Global installed geothermal capacity1 10x Global potential EU Africa ASIA Oceania U.S LATAM vs. installed 1 Installed 3.6 0.9 4.9 1.0 3.9
Slide 11: Regulatory Boost: Financial Impact of IRA
REGULATORY FINANCIAL IMPACT OF IRA BOOST Q2 2024 2024 outlook Income attributable to sale of tax Income tax (provision) benefit($M) benefits($M) $15.0 $15.8 Expecting $38 million benefit 2.7 3.6 on an annual basis that will be recorded proportionally throughout the year. 12.3 12.2 Cash proceeds from
Slide 12: Development in Indonesia
DEVELOPMENT IN INDONESIA SARULLA 42MW TOKA TINDUNG Under development: # 1 4 th in operation initial drilling Largest Largest 12.75% 75-100% economy in country in ownership ownership Southeast Asia1 the world 2 BBB/ Baa2 ~ 33GW Country’s 2020 electricity rating by S&P production4 and Moodys3 WAPSALIT
Slide 13: Significant Milestone: Development in NZ
The Wairakei geothermal power plant SIGNIFICANT MILESTONE: 50MW DEVELOPMENT IN NZ # 5 > 3.6GW Worldwide in Geothermal total installed resource Ormat to design, build and own 50MW power plant geothermal capacity potential Expected COD: Q4 2025 > 1GW ~ 18% Installed geothermal Of total electricity cap
Slide 14: Electricity Segment - Summary
ELECTRICITY SEGMENT - SUMMARY GROWTH DRIVERS: & NEW ZEALAND TARGETED GROWTH (MW): 1,650-1,750 1,450-1,470 1,215 +16%2 1,012 1,070 914 +20%2 +14% +11% +6% 2019 2021 2022 2023 2026E 2028E Geothermal Solar PV 1) Note: Please see appendix for detailed list of projects including MW and MWh numbers of the
Slide 15: Storage Market, Regulation, Pipeline Update
Storage market Regulation Pipeline update COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 15 15
Slide 16: U.S. Energy Storage Market: Steep Growth Trajectory
U.S. ENERGY STORAGE MARKET: STEEP GROWTH TRAJECTORY U.S. FTM cumulative storage deployment forecast (GW) 4x 83GW 20GW 52% California 2.2GW & Texas 2020 2021 2022 2023A 2024E 2025E 2026E 2027E 2028E California Texas Nevada Arizona Hawaii New York PJM (& NJ) All Others Source: Wood Mackenzie U.S. ener
Slide 17: Energy Storage
ENERGY STORAGE TARGET THE LARGEST AND MOST LUCRATIVE MARKETS: 4 California, Texas, and PJM 1 2 3 FOCUS ON STANDALONE ENERGY STORAGE Providing ancillary service, energy and capacity to the grid EXPANSION TO NEW REGIONS Short-term: additional markets in the U.S. Mid-term: international regions 1 55MW/
Slide 18: Key Factors Driving Accelerated Energy Storage Development
KEY FACTORS DRIVING ORMAT’S ACCELERATED ENERGY STORAGE DEVELOPMENT 67% DECREASE IN LITHIUM PRICES YTD1 YTD Lithium Carbonate Price (CNY/T) 231,360 400,000 300,000 200,000 100,000 IRA Batteries Increased demand Strong pipeline 76,500 tax benefits price reduction for RA and tolling in CA with secured
Slide 19: Energy Storage Pipeline
ENERGY STORAGE PIPELINE Rabbit Hill storage facility, TX, USA 10MW/10MWh ~3.5GW/13.2GWh 34 potential capacity of named U.S. storage pipeline prospects GEOGRAPHICAL Others 75 BREAKDOWN (MW) East Coast1 395 Texas 405 WECC 655 California 2,025 1) East coast market includes PJM, ISO-NE, NYISO and SERC C
Slide 20: Ormat Energy Storage Development
ORMAT ENERGY STORAGE DEVELOPMENT MW Growth Target GW Market Growth Projection1 MWh Growth Target ~6x 4X ~ 9x 950 -1,050 80 2.5-2.9 1.9-2.3 700-800 20 170 298 YE 2023 2026E 2028E YE 2028E YE 2023 2026 2028 Run 2023 rate (1) Source: Wood Mackenzie U.S. energy storage monitor Q1 2024 COPYRIGHT © 2024 O
Slide 21: Segment Overview, Backlog Updates
Segment overview Backlog updates COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 21 21
Slide 22: Product Segment Overview
PRODUCT SEGMENT Primary provider of geothermal binary plants Suppliers of geothermal power plants 2018 – 2023 capacity (MW) OVERVIEW 61% 74% Binary Ormat A market leader 1,939 BINARY MW TOTAL Built approximately 190 power plants and installed approx. 3,400 MW of Kaishan 13% geothermal & REG over the
Slide 23: Focusing on Strategic Territories
FOCUSING ON STRATEGIC TERRITORIES(MW) 1.8 GW IN 5 years Expected release of geothermal binary capacity 68 MW 111 MW 394 MW 107 MW USA EUROPE TURKEY EAST ASIA 345 MW 305MW 525 MW LATAM & CARIBBEANS INDONESIA NEW ZEALAND Source: Thinkgeoenergy.com and Ormat analysis COPYRIGHT © 2024 ORMAT TECHNOLOGIES
Slide 24: Product Backlog
PRODUCT BACKLOG TAOM, NZ 28MW 3RD PARTY CONTRACTS ~$ 165M 98% Backlog Geothermal contracts Backlog Recovery($M) Geographic Breakdown 165 40% 50% 66 5% 5% Q2/20 Q2/21 Q2/22 Q2/23 Q2/24 1) Backlog as of August 5th, 2024. The backlog Includes revenues for the New Zealand Dominica period between July 1s
Slide 25: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 25 2
Slide 26: Robust Growth Plan
1 ROBUST GROWTH PLAN INSTALLED CAPACITY GROWTH Significantly 15%-17% CAGR increase geothermal & solar capacity 2.6GW-2.8GW 2.1GW-2.3GW Storage (MW) +780-880 Storage (MW) 1.3GW +530-630 Electricity (MW) Electricity (MW) Accelerate +335-355 +535-635 storage capacity to establish leading Additional cap
Slide 27: Geothermal Development
GEOTHERMAL DEVELOPMENT North Valley, NV, USA 25MW Projected Expected Project PPA Capacity (MW) COD U.S – Beowawe Repowering 6 ✓ Indonesia – Ijen 15(1) Q4 2024 ✓ Under development: Guatemala – Zunil 5 2025 ✓ 125MW Guadeloupe- Bouillante 10 Q4 2025 ✓ from Dominica 10 Q4 2025 ✓ 10 projects New Zealand
Slide 28: Solar Development
SOLAR DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD U.S. – Steamboat Hills Solar 5 ✓ U.S. – North Valley Solar 7 ✓ Under development: U.S. – Beowawe Solar* 6 Q4 2024 ✓ 62MW U.S. – Arrowleaf 42 Q4 2025 ✓ from U.S. – McGinness Hills Solar 14 H2 2026 ✓ 3 projects Commercial operation was
Slide 29: Energy Storage Development
ENERGY STORAGE DEVELOPMENT Stryker storage facility, NJ, USA 20MW/20MWh Projected Projected Expected Project Capacity ITC%1 PPA MWh COD (MW) NJ – East Flemington 20 20 30% Merchant Under development: CA – Bottleneck 80 320 40% Q3 2024 Full Tolling 435 MW/ NJ – Montague 20 20 30% Q1 2025 Merchant 1,2
Slide 30: 2024 Guidance ($M)
2024 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA 875-910 710-720 130-145 35-45 520-550 +7% +7% +1% +38% +11% TRANSITIONING TO 2.6GW-2.8GW ACCELERATED 2.1GW-2.3GW GROWTH IN STORAGE & ELECTRICITY + 15%-17% 1.3GW CAGR SEGMENTS 2023-2028E2 Storage Solar Geothermal 2023
Slide 31: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 31 31
Slide 32: Strong Financial Positioning
STRONG FINANCIAL POSITIONING Installed Capacity Growth (MW) Revenue Growth ($M) 1,420 1,385 1,158 1,095 1,005 $887 957 $829 $746 $705 $663 $734 2019 2020 2021 2022 2023 June 30, 2019 2020 2021 2022 2023 LTM Geothermal REG Solar Storage 2024 Electricity Product total Adjusted EBITDA1 Growth ($M) $482
Slide 33: Strong Financial Positioning
STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)1 $2,350 2,186 $2,027 $2,088 $1,908 1,800 1,801 1,522 $1,456 $1,238 1,085 919 2019 2020 2021 2022 2023 June 30, 2019 2020 2021 2022 2023 June 30, 2024 2024 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (Total Equ
Slide 34: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 34
Slide 35: ESG Update
ESG UPDATE Zero emission Board diversity Reporting project growth Increasing avoided Increased female Preparing to new SEC emissions from new representation regulation and expected projects to 44% alignment to TCFD requirements COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 35
Slide 36: Attractive Investment Thesis
ATTRACTIVE INVESTMENT THESIS Strong financial positioning Robust growth potential ESG Strong balance sheet and favorable Significant, consistent Renewable asset growth leverage profile domestic growth in the U.S. supported by favorable regulation Long-term contracted International geothermal growth
Slide 37: Committed to Continued Profitable Growth
COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 37
Slide 38: Air-Cooled Binary Geothermal Power Plant
AIR-COOLED BINARY GEOTHERMAL POWER PLANT COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 38
Slide 39: Payment of Principal Due by Period ($M)
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M)1,2 AVERAGE INTEREST RATE: 4.63% ($ millions) Q3-2024 Q4-2024 Year 2024 Long-Term non-recourse & limited recourse debt 14.0 19.1 33.2 Long Term Loans Full Recourse 39.1 24.8 63.8 Finance Liability 2.7 - 2.7 Total $55.8 $43.9 $99.7 Remaining Total 2024 2025 2026
Slide 40: CapEx for 2024
CAPEX FOR 2024 ACTUAL INVESTED TOTAL CAPEX TOTAL CAPEX ($M) IN H1 2024 FOR H2 2024 FOR 2024 Electricity Segment 175 138 313 Construction & Enhancements – fully released 75 90 165 Development enhancement, drillings and Exploration 48 20 68 Maintenance CapEx 52 28 80 Storage Segment 62 140 202 Product
Slide 41: P&L Highlights
P&L HIGHLIGHTS Q2 2024 Q2 2023 H1 2024 H1 2023 GAAP MEASURES Revenues ($M) Electricity 166.2 155.3 357.5 325.6 Product 37.8 33.5 62.7 43.5 Energy Storage 8.9 6.0 17.0 10.9 Total Revenues 213.0 194.8 437.1 380.0 Gross Profit ($ millions) 61.4 49.5 140.2 125.6 Gross margin (%) Electricity 33.5% 29.6%
Slide 42: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Six Months Ended June 30, Ended June 30, 2024 2023 2024 2023 Net income 23,965 24,511 64,315 57,972 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 31,112 19,451 60,241 41,231 In
Slide 43: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA Year Ended December 31, 2023 2022 2021 2020 2019 (Dollars in thousands) Net income 133,137 77,795 76,077 101,806 93,543 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 86,898 84,326 80,534 76,236 78,869 Income tax
Slide 44: 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders $22.2 $24.2 60.8 53.2 Write-off of long
Slide 45: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES June 30, 2023 2022 2021 2020 2019 2024 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 66 196 96 240 448 71 Marketable Securities at fair value - - - 43 - - Restricted cash and cash equivalen
Slide 46: Geothermal Development
GEOTHERMAL DEVELOPMENT Ormat's geologists during exploration activity Region Location # of sites Nevada 22 42 California 4 prospects U.S. Oregon 2 Utah 4 New Mexico 1 Guatemala 2 CENTRAL AMERICA Honduras 1 AFRICA Ethiopia 4 ASIA PACIFIC Indonesia 2 COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 46