Slide 1: Ormat Technologies, Inc. Investor Presentation
ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION MARCH 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 These forward-looking statements are not intended to be a guarantee of future results, but instead This presentation, and informati
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 i
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: 2023 Highlights
2023 HIGHLIGHTS 239MW 203MW 355MW/1,060MWh 664M New capacity added in Electricity under Energy storage Capital raised 2023 construction & under construction & development development Electricity – 57MW Geothermal – 131MW Texas – 120MW/240MWh Equity – $342M Acquired assets – 100MW* Solar – 72MW PJM –
Slide 7: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH Access to multiple sources of liquid capital 3.7x Net debt to Adj. EBITDA2 $550M $741M Expected CapEx for Total FY 20241 liquidity3 42% Net debt to Raised $ 200 M long-term corporate capitalization2 loan in early 2024 (1) For detail
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 1 935 MW U.S. 3 33 MW Honduras 5 150 MW Kenya 1,215MW 77% U.S. 23% International Geothermal, Solar PV & REG 2 40 MW 4 15 MW 6 42 MW1 Guatemala Guadeloupe Indonesia 92% Growing Profitable portfolio3 Geoth
Slide 10: Geothermal Market
GEOTHERMAL MARKET # 2 Ormat - the 2nd largest geothermal ABOITIZ POWER owner & operator1 STAR ENERGY PERTAMINA ON POWER MERCURY ORMAT CALPINE KENGEN ENEL EDC CFE ~ 16.3GW Global Installed geothermal capacity1 10x EU Africa ASIA Oceania U.S LATAM Global Potential Installed 3.6 0.9 4.9 1.0 3.9 1.7 vs.
Slide 11: IRA Benefits Reduce Capital Needs
EXPECTED CASH IRA FROM IRA TAX BENEFITS TO REDUCES PTC ITC CAPITAL NEEDS BENEFITS TO THE GEOTHERMAL ASSETS BENEFITS TO THE STORAGE ASSETS IN 2023 TAX EQUITY TRANSACTION ITC SALE EBITDA IMPACT OVER REDUCES TAX EXPENSES & UP-TO 10 YRS. BOOSTS EPS equivalent to 40-45% of eligible CAPEX 30-40% of eligib
Slide 12: Regulatory Environment: Financial Impact of IRA
REGULATORY FINANCIAL IMPACT OF IRA ENVIRONMENT Income attributable 2024 outlook to sale of tax benefits1 Income attributable to sale of Q4 2023 tax benefits – will be reduced by approx. $5 - $10 million 18.7 4.0 Income tax line - $40 million 7.5 14.7 benefit that will be recorded 7.5 proportionally
Slide 13: 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 14: Development in New Zealand
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 potential capacity Expected COD: Q4 2025 > 1GW ~ 18% Installed geothermal Of total electricity cap
Slide 15: Electricity Segment - Summary
ELECTRICITY SEGMENT - SUMMARY GROWTH DRIVERS: & NEW ZEALAND TARGETED GROWTH (MW): 1,450-,1,470 1,215 1,012 1,070 914 +11% +6% +14% +19% - 21% 2019 2021 2022 Current 2026E Geothermal Solar PV COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 15 Note: Please see appendix for detailed list of projects includin
Slide 16: Storage Market, Regulation, Pipeline Update
Storage market Regulation Pipeline update COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 16 16
Slide 17: U.S. Energy Storage Market: Steep Growth Trajectory
Andover storage facility, NJ, USA 20MW/20MWh U.S. ENERGY STORAGE MARKET: STEEP GROWTH TRAJECTORY U.S. FTM cumulative storage deployment forecast (MW) 58 GW 26x 2.2 53% California GW & Texas 2020 2021 2022 2023E 2024E 2025E 2026E California Texas Nevada Arizona Hawaii New York PJM (& NJ) All Others S
Slide 18: Energy Storage
ENERGY STORAGE TARGET THE LARGEST AND MOST LUCRATIVE MARKETS: 4 California, Texas, and PJM 1 5 3 2 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 55M
Slide 19: Key Factors Driving Accelerated Energy Storage Development
KEY FACTORS DRIVING ORMAT’S ACCELERATED ENERGY STORAGE DEVELOPMENT 74% DECREASE IN LITHIUM PRICES YTD1 YTD Lithium Carbonate Price (CNY/T) 370,550 450,000 400,000 350,000 300,000 250,000 200,000 100,000 IRA Batteries Increased demand Strong pipeline 99,221 50,000 Tax benefits price reduction for RA
Slide 20: Ormat's Storage Pipeline
ORMAT’S STORAGE PIPELINE Rabbit Hill storage facility, TX, USA 10MW/10MWh 355 MW/ 1,060MWh 7 under development projects ~3.6GW / 13.1GWh 33 potential capacity prospects of total pipeline Others 150 U.S. storage WECC 355 pipeline Texas 425 GEOGRAPHIC East Coast1 1 595 BREAKDOWN California 2,025 IN GW
Slide 21: Ormat Energy Storage Development
ORMAT ENERGY STORAGE DEVELOPMENT Energy storage by MW Energy storage by MWh 700-800 1,900-2,300 225 742 50% - 52% 355 70% - 75% 2019-2026E 2019-2026E CAGR 1,060 CAGR 170 83 88 298 73 82 176 196 43 10 5 170 136 20 30 83 88 46 40 102 298 42 43 73 45 90 136 176 196 1 1 46 2019 2020 2021 2022 2023 2026E
Slide 22: Segment Overview, Backlog Updates
Segment overview Backlog updates COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 22 2
Slide 23: 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 1,934 BINARY MW TOTAL Built approx. 190 power plants and installed approx. 3,200 MW of geothermal Kaishan 13% & REG over the years
Slide 24: Focusing on Strategic Territories
FOCUSING ON STRATEGIC TERRITORIES (MW & PROJECT COUNT) 1,285 MW IN 3 years Eexpected release of geothermal binary capacity U.S. TURKEY 193 MW 202 MW INDONESIA 365 MW LATAM 160 MW NEW ZEALAND 365 MW Source: Thinkgeoenergy.com and Ormat analysis COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 24
Slide 25: Product Backlog
PRODUCT BACKLOG TAOM, NZ 28MW 3RD PARTIES’ CONTRACTS ~$ 152M 93% ~$157 M backlog Geothermal new contracts signed contracts in 2023 Backlog recovery Geographic Breakdown 76% 142 152 5% 5% 4% 4% 2% 4% Q4/19 Q4/20 Q4/21 Q4/22 Q4/23 New Zealand Guatemala 3 Indonesia Turkey 1) Backlog as of February 21,
Slide 26: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 26 2
Slide 27: 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 28: 2026 Growth Target
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 29: 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 Negotiating PPA Guadeloupe- Bouillante 10 Q4 2025 terms from Dominica 10 Q4
Slide 30: Solar Development
SOLAR DEVELOPMENT Ormat's geologists during exploration activity Projected Expected Project Capacity PPA COD (MW) U.S. – Steamboat Hills Solar 4 Q1 2024 ✓ Under development: U.S. – North Valley Solar 6 Q2 2024 ✓ 72 MW U.S. – Beowawe Solar 6 Q2 2024 ✓ from 5 projects U.S. – Arrowleaf 42 H1 2025 ✓ U.S
Slide 31: 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 Flemington1 20 20 30% Q1 2024 Merchant Under development: CA – Bottleneck 80 320 40% Q2 2024 Full Tolling 355 MW/ NJ – Montague 20 20 30% Q1 2025 Me
Slide 32: 2024 Guidance ($M)
2024 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA 860-910 710-730 115-135 35-45 515-545 +7% +8% -7% +38% +10% 2.1GW-2.3 GW TRANSITIONING TO ACCELERATED +19%-21% GROWTH 1.3 GW CAGR 2023-2026E IN STORAGE & ELECTRICITY 1.1 GW 1.16 GW SEGMENTS Storage Solar Geothermal 20
Slide 33: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 33 3
Slide 34: Strong Financial Positioning
STRONG FINANCIAL POSITIONING Installed capacity growth (MW) Revenues growth ($m) 1,385 1,158 1,095 1,005 $829 957 $746 $734 $705 $663 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Geothermal REG Solar Storage Electricity Product total Adjusted EBITDA growth ($m) $482 $420 $435 $384 $401 2019 202
Slide 35: Strong Financial Positioning
STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)1 $2,027 $2,088 $1,800 $1,801 $1,908 $1,521 $1,456 $1,238 $1,085 $919 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (Total Equity)1 Net Debt to Adjusted EBITDA1 4
Slide 36: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 36
Slide 37: Environment and Social Highlights
HIGHLIGHTS 2.2 M tCO2e AVOIDED emissions compared to ENVIRONMENT the local grid, only in 2022 19% Absolute reduction in Scope 1 and 2 GHG emissions compared with 2019 baseline 25% Reduction in GHG emissions intensity (tCO2e/MWh) compared with 2019 baseline 30% Women in VP-level 25.3 Training hours p
Slide 38: Governance Highlights
HIGHLIGHTS COMMITMENT TO UPHOLDING GOVERNANCE THE HIGHEST STANDARDS ACROSS THE ORGANIZATION Our corporate governance practice is defined by honesty, openness and fairness We are constantly improving our governance and our level of disclosure on related topics, such as anti- corruption, executive rem
Slide 39: Attractive Investment Thesis
ATTRACTIVE INVESTMENT THESIS Strong financial positioning Robust growth potential ESG Strong balance sheet and favorable Significant, consistent Renewable asset growth leverage profile domestic growth in the U.S. supported by favorable regulation Long-term contracted International geothermal growth
Slide 40: Committed to Continued Profitable Growth
COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 40
Slide 41: Air-Cooled Binary Geothermal Power Plant
AIR-COOLED BINARY GEOTHERMAL POWER PLANT COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 41
Slide 42: Payment of Principal Due by Period ($M)
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M) AVERAGE INTEREST RATE: 4.30% ($ millions) Q1-2024 Q2-2024 Q3-2024 Q4-2024 Year 2024 Long-Term non-recourse & limited recourse debt 17.4 12.9 13.6 13.3 57.2 Long Term Loans Full Recourse 23.2 49.0 23.2 21.4 116.9 Finance Liability 2.5 - 2.7 - 5.1 Total $43.1 $6
Slide 43: CapEx for 2024
CAPEX FOR 2024 ACTUAL INVESTED TOTAL CAPEX ($M) IN 12 MONTHS 2023 FOR 2024 Electricity Segment 460 340 Construction & Enhancements – fully released 190 185 Development enhancement, drillings and Exploration 102 89 Puna restoration (including drilling) 39 0 Olkaria recovery, partially released for co
Slide 44: P&L Highlights
P&L HIGHLIGHTS Q4 2023 Q4 2022 YTD 2023 YTD 2022 GAAP MEASURES Revenues ($M) Electricity 183.9 165.2 666.8 631.7 Product 50.4 32.2 133.8 71.4 Energy Storage 7.0 8.1 28.9 31.0 Total Revenues 241.3 205.5 829.4 734.1 Gross Profit ($ millions) 78.5 80.2 264.0 268.8 Gross margin (%) Electricity 39.5% 43.
Slide 45: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Twelve-Months Ended December 31, Ended December 31, 2023 2022 2023 2022 Net income 38,833 20,230 133,137 77,795 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 23,440 22,604 86,8
Slide 46: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES December 31, 2023 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 196 Restricted cash and cash equivalents 92 Total cash and cash equivalents, marketable securities and Restricted cash (in mi
Slide 47: 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. 47