Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Q1 2022 Earnings Presentation

36 slides from Ormat Technologies's earnings presentation, May 2022

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

    ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MAY 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

    A LEADING RENEWABLE ENERGY PROVIDER Over Own & operate WITH A PROVEN TRACK RECORD IN GEOTHERMAL & ENERGY STORAGE 55 ~1.1GW Years of experience Geothermal, Storage, Solar PV & REG(1) 1,400 $ 663M Employees 2021 revenues $ 401M $ 62M 2021 adj. EBITDA(2) 2021 Net income(3) (1) REG – Recovered Energy Ge

  5. Slide 5: Our Business Segments

    OUR BUSINESS SEGMENTS 88% 8% 4% Of Q1 2022 Of Q1 2022 Of Q1 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

  6. Slide 6: Electricity Segment Overview

    ELECTRICITY SEGMENT OVERVIEW 5 4 Diversified 1 2 3 portfolio 6 72% 28% U.S. International 2021 Geographic 01 U.S. 02 03 Honduras breakdown 740 MW Guatemala 38 MW of revenues 40 MW 04 Guadeloupe 05 Kenya 06 Indonesia 15 MW 150 MW 42 MW(1) $586 Global operation $510 $540 $541 Profitable $436 $466 94%

  7. Slide 7: 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

  8. Slide 8: 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

  9. Slide 9: Regulatory and Policy Drivers

    REGULATORY AND POLICY DRIVERS State-level Energy Storage Targets Nevada New York Maine Massachusetts 1 GW 3 GW 400 MW 1 GW by by 2030 by 2030 by 2030 YE 2025 CPUC1: 9 Procure additional 15 GW states have energy storage targets of new storage and demand response resources by 2032 California Arizona V

  10. Slide 10: Steep Market Growth Trajectory

    STEEP MARKET GROWTH TRAJECTORY 49,107 U.S. FTM storage is expected to reach 49 GW in 2026 39,443 21x from 2020 30,597 50 % 22,195 of projected growth from California & Texas 13,376 7,065 2,309 1,195 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E California Texas Nevada Arizona Hawaii New York PJM (&

  11. Slide 11: Storage Segment

    STORAGE SEGMENT TARGET THE LARGEST AND MOST 1 LUCRATIVE MARKETS: California, Texas, and PJM 01 CA 02 TX 30MW/120MWh 10MW/10MWh 03 NJ 04 VT FOCUS ON STANDALONE ENERGY 41MW/41MWh 2MW/5MWh 2 STORAGE Providing ancillary service, energy and capacity to the grid 4 3 1 EXPANSION TO NEW REGIONS 3 Short-term

  12. Slide 12: Ormat's Growth Drivers

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

  13. Slide 13: Robust Growth Plan

    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: ~ 38% - 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) 1,202 – 1,213 MW 313 – 373 MW / 722 – YE 2023 TARGET 842 MWh MW ADDITION(1),(2) 190 - 201 MW 230 - 290 MW MW GROWTH 19% - 20% 277%-349% (1) Increase in MW growth is compared to a 1,012MW Geothermal & Solar portfolio

  15. Slide 15: Geothermal Under Development

    GEOTHERMAL UNDER DEVELOPMENT: 9 projects, 111-122 MW by 2023 Expected Projected Country/State Project PPA COD Capacity (MW) 2022 CA 1 U.S - CD4 30  NV 2 U.S - North Valley 25 Subject to PUC approval Guatemala 3 Zunil 5  CA 4 U.S - Heber Complex 11  5 U.S. – Dixie Valley 4  2023 6 U.S. - North Va

  16. Slide 16: Solar Energy Under Development

    SOLAR ENERGY UNDER DEVELOPMENT: 6 projects, 66 MW AC by 2023 Expected Projected Projected State Project PPA COD Capacity (MW) MWh 2022 CA 1 U.S - Wister Solar 20 AC Q2 2022  2 Tungsten Solar 2 9 AC Q2 2022  NA (half in H1 2022 and 3 Steamboat Solar 10 AC  half in Q2 2023) 4 North Valley Solar 7 A

  17. Slide 17: Storage Energy Under Development

    STORAGE ENERGY UNDER DEVELOPMENT: 8 projects, 189 MW, all secured for battery supply and revenue source Expected Projected Projected State Project PPA COD Capacity (MW) MWh 1 Tierra Buena; CA 25 60 RA & Merchant 2 Pomona 2 2022 TX 3 Upton 25 25 Merchant 4 Andover NJ 27 27 Merchant 5 Howell OH 6 Bowl

  18. Slide 18: Geothermal Prospects

    GEOTHERMAL PROSPECTS: Region Location # of sites Nevada 21 California 4 U.S. Oregon 2 Utah 2 GEOTHERMAL New Mexico 1 41 PROSPECTS Guatemala 2 CENTRAL AMERICA Honduras 1 AFRICA Ethiopia 3 New Zealand 1 ASIA PACIFIC Indonesia 4 Copyright © 2022 Ormat Technologies, Inc. 18

  19. Slide 19: Leveraging Our Market Expertise to Build Storage Pipeline

    LEVERAGING OUR MARKET EXPERTISE TO ENHANCE AND BUILD STORAGE PIPELINE 2.4 GW 2.1 GW 30 named projects 30 named projects 1.2 GW 33 named projects 0.3 GW 19 named projects 2019 2020 2021 Q1 2022 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 2022 Copyright © 2022 Ormat Technologies, Inc. 20

  21. Slide 21: Ormat Financial Growth Targets

    ORMAT FINANCIAL GROWTH TARGETS PORTFOLIO GROWTH (GW) EXPAND OPERATION IN THE U.S. 14-16% CAGR 2.15 GW – 4% 6% 2.3 GW Indonesi Indonesi a a 1.7GW – 22% 74% 12% 83% 1.75GW 750 Intl. U.S. Intl. U.S. 455 97.5 2021 2026 1.1 GW 80 (MW) (MW) 83 7 1,375 1,190 1,005 2021 2024E 2026E Geothermal Solar Storage

  22. Slide 22: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Copyright © 2022 Ormat Technologies, Inc. 22

  23. Slide 23: Key Investment Highlights

    KEY INVESTMENT HIGHLIGHTS Strong financial Innovative Robust growth ESG positioning potential Copyright © 2022 Ormat Technologies, 23Inc. 23

  24. Slide 24: 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

  25. Slide 25: Strong Financial Positioning

    STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)(1) 1,908 $1,836 $1,521 $1,579 $1,456 $1,238 $1,268 $1,090 $1,085 $919 2018 2019 2020 2021 March 2018 2019 2020 2021 March 31, 31,2022 2022 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (Total Equity) (1) Net Deb

  26. Slide 26: 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

  27. Slide 27: Committed to Continued Profitable Growth

    COMMITTED TO CONTINUED PROFITABLE GROWTH MORE THAN DOUBLE EXPLORATION ACTIVITY EXPANDING SIGNIFICANTLY DEVELOPMENT EFFORTS IN INDONESIA GROWING OUR ENERGY STORAGE TARGETING 10X THE CURRENT CAPACITY BY 2026 STRONG REGULATORY TAILWIND Copyright © 2022 Ormat Technologies, Inc. 27 Copyright © 2022 Ormat

  28. Slide 28: Appendix

    APPENDIX Copyright © 2022 Ormat Technologies, Inc. 28

  29. Slide 29: Operational Challenges

    OPERATIONAL CHALLENGES Bouillante, Guadeloupe • Back to full operation • Advancing with the 10MW expansion Olkaria, Kenya • Power plant is generating 123 MW due to lower performance of the resource • OEC enhancement completion is expected in May 2022 • Expected 10 to 12 MW contribution • Drilling ca

  30. Slide 30: Puna

    PUNA Q1 2022 25 MW Stable capacity High energy rates due to high oil prices Year end of 2022 Working to maximize long term capacity New 46MW PPA PUC issued a decision with conditional approval Evaluating the positive decision of the PUC Puna complex, Hawaii Copyright © 2022 Ormat Technologies, Inc.

  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 Ended March 31, 2022 2021 Net income 22,793 17,829 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 20,739 18,753 Income tax provision (benefit) 10,163 3,007 Adjustment to investm

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

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Three Months Year Ended December 31 Ended March 31, 2022 2021 2020 2019 2018 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 130 239 448 71 99 Marketable Securities at fair value 43 43 Restri

  34. Slide 34: Capex for 2022

    CAPEX FOR 2022 ACTUAL INVESTED TOTAL CAPEX ($M) IN Q1 2022 FOR Q2-Q4 2022 Electricity Segment 102.1 320 Construction & Enhancements – fully released 61.1 165 Development enhancement, drillings and Exploration 15.2 86 Puna restoration (including drilling) 10.0 23 Olkaria recovery, partially released

  35. Slide 35: Products Segment Third-Party Backlog

    5% 13% 5% PRODUCTS Germany 4% SEGMENT Guatemala 18% U.S. THIRD-PARTY Indonesia 8% BACKLOG(1) $45.7M Taiwan Israel Nicaragua 91.8% 12% Geothermal New Zealand contracts CONTRACTS GEOGRAPHIC Others BREAKDOWN 9% 26% Backlog as of May 1, 2022. The backlog Includes revenues for the period between April 1,

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

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

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