Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Presentation (March 2022)

36 slides from Ormat Technologies's investor presentation, March 2022

  1. Slide 1: Ormat Technologies, Inc. Investor Presentation March 2022

    ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MARCH 2022 Copyright Copyright©©2022 2022Ormat 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 © 2022 Ormat Technologies, Inc. 3

  4. Slide 4: A Leading Renewable Energy Provider in Geothermal and Energy Storage

    A LEADING RENEWABLE over Own & operate ENERGY PROVIDER 55 ~1,100MW WITH A PROVEN TRACK RECORD Years of experience Geothermal, Storage, Solar PV & REG(1) IN GEOTHERMAL AND ENERGY STORAGE 1,400 $ 663M Employees 2021 revenues $ 401M $ 62M 2021 adj. EBITDA(2) 2021 Net income(3) (1) REG – Recovered Energ

  5. Slide 5: Our Business Segments

    OUR BUSINESS SEGMENTS 88% 7% 5% Of 2021 of 2021 of 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 (REG) pow

  6. Slide 6: A Strong Tailwind

    A STRONG TAILWIND The Glasgow climate change conference set an ambitious targets to reduce global warming. Governments, including U.S., made a commitment to reach those targets CPUC recommendation: • To procure 1 GW of zero emission high-capacity and weather independent power by 2026 - namely geothe

  7. Slide 7: Electricity Segment Overview

    ELECTRICITY SEGMENT OVERVIEW 5 4 Diversified 1 2 3 portfolio 6 69% 31% U.S. International 2021 Geographic 01 U.S. 02 Guatemala 03 Honduras breakdown 727 MW 40 MW 38 MW of revenues 04 Guadeloupe 05 Kenya 06 Indonesia 15 MW 150 MW 42 MW(1) $586 Global operation $510 $540 $541 Profitable $436 $466 94%

  8. Slide 8: Geothermal Market

    GEOTHERMAL MARKET Ormat -the 2nd largest geothermal owner & operator 1,400 1,200 1,000 800 600 400 200 0 ~16 GW Global Installed geothermal capacity 9x Global Potential vs. Installed 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 Source of abo

  9. Slide 9: Product Segment Overview

    PRODUCT SEGMENT OVERVIEW Primary provider of geothermal binary plants Suppliers of geothermal power plants 2017 – 2021 capacity, MW Market leader Built approx. 190 power plants and installed approx. 62% Binary 78% 3,200 MW of geothermal & REG over the years Ormat 2,306 MW BINARY TOTAL 3rd parties’ b

  10. Slide 10: Energy Storage Market

    ENERGY STORAGE MARKET Growth in U.S. energy storage incremental State-level support for energy storage capacity (MW) 7,910 Nevada approved New York Main approved a Massachusetts 7,318 a 1 GW target approved a 3 GW 400 MW target by set a 1 GW target by 2030 target by 2030 2030 by end of 2025 6,508 5,

  11. Slide 11: Growth in Energy Storage Segment MW

    GROWTH IN ENERGY STORAGE SEGMENT 4 Ormat energy storage development timeline 1 3 Future developments Reaching between 350 230-290 MW 2 300 250 MW 01 CA 02 TX 30MW/120MW 10MW/10MW 200 h h 03 NJ 04 VT 41MW/41MW 2MW/5MWh 150 h Valecito – SCE/CAISO Establishing strong market position 100 Stryker – PJM R

  12. Slide 12: Ormat's Growth Drivers

    ORMAT’S GROWTH DRIVERS Copyright © 2022 Ormat Technologies, Inc. 12

  13. Slide 13: Robust Growth Plan: 1.5 GW - 1.6 GW

    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: 1.5 GW - 1.6 GW Total expected MW growth vs 2021: ~ 40% - 45% This growth plan is subject to obtaining all permits an

  14. Slide 14: 2023 Growth Target by Segments

    2023 GROWTH GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE TARGET BY SEGMENTS (VS 2021) 1,215 - 1,226 MW 313 – 373 MW / 722 – YE 2023 TARGET 842 MWh MW ADDITION 203 – 214 MW 230 - 290 MW MW GROWTH 20%-21% 277%-349% Increase in MW growth is compared to a 1,012MW Geothermal & Solar portfolio and an 83 MW st

  15. Slide 15: Geothermal Projects Under Development

    Projected Expected Project Capacity PPA COD (MW) U.S - Heber Complex 11 Q1 2023  U.S - CD4 30 H1 2022  End 2022/Early U.S - North Valley 25 Under negotiation 2023 GEOTHERMA U.S. – Puna expansion 8 H1 2024  Subject to PUC L 12 PROJECTS U.S – Dixie Meadows 12 End of 2022  137-148 MW(2) U.S. - Tung

  16. Slide 16: Solar Energy Projects Under Development

    Projected Expected Project Capacity PPA COD (MW) U.S - Wister Solar 20 AC H2 2022  SOLAR U.S. - Tungsten Solar 2 9 AC 2022  6 PROJECTS 66 MW AC U.S. - Brady Solar 6 AC 2022  BY 2023 U.S. - Steamboat Solar 10 AC(1) (half in 2022 and half 2023)  U.S. – North Valley Solar 7 AC H2 2023  U.S. – McGi

  17. Slide 17: Geothermal Prospects

    Region Location # of sites Nevada 21 California 4 U.S. Oregon 2 Utah 2 GEOTHERMAL GEOTHERMAL New Mexico 1 PROSPECTS 41 PROSPECTS Guatemala 2 CENTRAL AMERICA Honduras 1 AFRICA Ethiopia 3 New Zealand 1 ASIA PACIFIC Indonesia 4 Copyright © 2022 Ormat Technologies, Inc. 17

  18. Slide 18: Energy Storage Projects Under Development

    Projected Projected Expected Project Capacity PPA MWh COD (MW) Capacity CA - Tierra Buena 5 20 Q1 2022 PPA and Merchant TX - Upton 25 25 Q1 2022 Merchant ENERGY STORAGE NJ - Andover 20 20 Q2 2022 Merchant 8 PROJECTS NJ - Howell 7 7 Q2 2022 Merchant 189 MW ENERGY Capacity STORAGE OH – Bowling 12 12 Q

  19. Slide 19: Energy Storage Pipeline

    2.3 GW 32 230MW - potential capacity of named 290MW/ U.S. storage pipeline prospects 546-666MWh expected addition by YE 2023 ENERGY STORAGE PIPELINE Copyright © 2022 Ormat Technologies, Inc. 19

  20. Slide 20: Growth: MW and Adjusted EBITDA Expectations

    GROWTH MW EXPECTATIONS ADJUSTED EBITDA EXPECTATIONS >1,500MW >$500M run-rate(2) 1,095MW $401M (1) 2021 2022 2023 2021 2022 2023 (1) For non –GAAP financial measures reconciliation please see the appendix slides (2) Annual run-rate towards the end of 2023 Copyright © 2022 Ormat Technologies, Inc. 20

  21. Slide 21: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Copyright © 2022 Ormat Technologies, Inc. 21

  22. Slide 22: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Strong financial Innovative Robust growth ESG positioning potential Copyright © 2022 Ormat Technologies, 22Inc. 22

  23. Slide 23: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Installed capacity growth (MW) Revenue growth ($m) Geothermal REG Solar Storage 1,095 Electricity segment Product segment Energy Storage 1,005 931 957 $693 $719 $746 $705 795 $663 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Electricity segment gross margin (%) Adju

  24. Slide 24: Strong Financial Positioning: Debt and Leverage

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)(1) $1,908 $1,521 $1,456 $1,268 $1,238 $1,090 $1,085 $914 $919 $817 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (Total Equity) (1) Net Debt to Adjusted EBITDA(1

  25. Slide 25: ESG Initiatives

    ESG INITIATIVES ENVIRONMENT GOVERNANCE We are moving to strengthen our ESG commitments Building our approach and policy on significant valuable issues • Water management • Taxation • Suppliers and procurement policy • political communication We issued corporate sustainability report, the third one b

  26. Slide 26: 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

  27. Slide 27: Appendix

    APPENDIX Copyright © 2022 Ormat Technologies, Inc. 27

  28. Slide 28: Kenya Update

    KENYA UPDATE Presidential task force • Task force completed their review of all Independent Power Producer’s PPAs • Ormat’s rates in Kenya are significantly lower than many other IPP’s operating in the country We remain committed to providing clean, renewable base load energy to Kenya and working wi

  29. Slide 29: Operational Challenges

    OPERATIONAL CHALLENGES $5M and $21M total impact on gross margin in Q4 and Olkaria full year 2021, respectively. • Power plant is generating 123MW due to lower performance of the resource • Resulting in lower gross profit by approx. $3 million and approx. $14 million in the fourth quarter and full y

  30. Slide 30: Operation Update - Puna

    OPERATION UPDATE - PUNA Nov. 2020 10 MW Resumed operation Year end 2021 25 MW Stable capacity Year end of 2022 Working to maximize long term capacity PPA is subject to PUC approval Current PPA prices in Puna are positively impacted by higher oil prices Puna complex, Hawaii Copyright © 2022 Ormat Tec

  31. Slide 31: 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 years ended December 31, 2021, 2020, 2019, 2018, and 2017. Year Ended December 31, 2021 2020 2019 2018 2017 (Dollars in thousands) Net income 76,077 101,806 93,543 11

  32. Slide 32: Reconciliation of EBITDA and Adjusted EBITDA

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Years Ended Dec 31, Ended Dec 31, 2021 2020 2021 2020 Net income 22,273 23,532 76,077 101.806 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 22,252 18,891 80,534 76,236 Income t

  33. Slide 33: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Year Ended December 31 2021 2020 2019 2018 2017 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 239 448 71 99 48 Marketable Securities at fair value 43 Restricted cash and cash equivalents an

  34. Slide 34: Capex for 2022

    CAPEX FOR 2022 ACTUAL INVESTED TOTAL CAPEX ($M) IN 12 MONTHS 2021 FOR 2022 Electricity Segment 383 417 Construction & Enhancements – fully released 207 226 Development enhancement, drillings and Exploration 31 104 Puna restoration (including drilling) 32 29 Olkaria recovery, partially released for c

  35. Slide 35: Products Segment Third-Party Backlog

    6% 11% 3% PRODUCTS Germany Guatemala SEGMENT Turkey 15% 15% THIRD-PARTY Indonesia BACKLOG(1) Taiwan $53.5M Israel 6% 1% Nicaragua New Zealand 98.9% Geothermal CONTRACTS GEOGRAPHIC Others 11% contracts BREAKDOWN 32% Copyright © 2022 Ormat Technologies, Inc. 35 Backlog as of February 16, 2022. The bac

  36. Slide 36: Air-Cooled Binary Geothermal Power Plant

    AIR-COOLED BINARY GEOTHERMAL POWER PLANT Copyright © 2022 Ormat Technologies, Inc. 36

Ormat Technologies — Investor Presentation (March 2022) on 6ix