Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Presentation (May 2019)

27 slides from Ormat Technologies's investor presentation, May 2019

  1. Slide 1: Ormat Technologies Inc. Investor Presentation May 2019

    ORMAT TECHNOLOGIES INC. INVESTOR PRESENTATION MAY 2019 Copyright Copyright©©2019 2019Ormat 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 2020 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 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 ~1,400 910 MW Employees 719$M FY2018 revenues 54 years 368$M of experience FY2018 adj. EBITDA(1) (1) See appendix for reconci

  5. Slide 5: LTM Summary - Continuing Execution

    LTM SUMMARY - CONTINUING EXECUTION Improve Organic Strategic New efficiencies growth M&A activities Product segment backlog (1) of Secured over 226 $M 240 $M of capital to support growth plan Commissioned Plan to add by the end of 2021 (2) Added 59 MW 2 20 X MW/MWh 127-142 MW storage projects in the

  6. Slide 6: The World's Only Vertically Integrated Geothermal Company: Electricity

    THE WORLD’S ONLY VERTICALLY INTEGRATED GEOTHERMAL COMPANY Development Drilling Engineering Manufacturing Construction Operation Customers: & exploration local utilities, C&I Electricity segment 67% of total revenues (1) (1) 2014-2018 average. Copyright © 2019 Ormat Technologies, Inc. 6

  7. Slide 7: The World's Only Vertically Integrated Geothermal Company: Products

    THE WORLD’S ONLY VERTICALLY INTEGRATED GEOTHERMAL COMPANY Development Drilling Engineering Manufacturing Construction Operation Customers: & exploration local utilities, developers C&I Products Product segment segment 32% of total revenues (1) (1) 2014-2018 average. Copyright © 2019 Ormat Technologi

  8. Slide 8: Electricity Segment Overview

    ELECTRICITY SEGMENT OVERVIEW Stable, well managed, cash generating assets • Global operation of 910 MW at 25 sites • 94% geothermal and 6% REG • Weighted average PPA life: 18 years(1) Annual revenue ($M) Global portfolio (910 MW) (2) $510 (4) $466 $436 $382 $376 U.S. Guadeloupe 622 MW 15 MW (3) Guat

  9. Slide 9: Product Segment Overview

    PRODUCT SEGMENT OVERVIEW Built approx. 180 power plants and installed over 2,900 MW of geothermal & REG over the years • Backlog of $226.4M as of May 6, 2019 (1) • Backlog include a new contract for the project in Chile - $59.0 million • Improvement in costs, technology and delivery lead-time Revenu

  10. Slide 10: Delivering Growth and Expanding Geographical Footprint

    DELIVERING GROWTH AND EXPANDING GEOGRAPHICAL FOOTPRINT LTM portfolio growth summary: 59 MW 2 New power plants 2 20 X MW/MWh of new capacity Geothermal storage U.S. Kenya June 2018, Olkaria III, Kenya, Plant 1 December 2018, McGinness Hils 20MW/20MWh system, NJ, U.S. expansion Phase 3, Nevada, U.S. C

  11. Slide 11: Growth Plan

    GROWTH PLAN • Added 59 MW in the LTM from organic growth • Expect adding between 127 MW and 142 MW by the end of 2021(1) • Continue to look for M&A opportunities Projected Potential Projects Expected COD PPA Capacity U.S - Tungsten Solar 7 AC MW Q2 2019 v U.S - Steamboat Hills Enhancement 19 MW 2020

  12. Slide 12: Electricity Segment: Long-Term Growth Target

    ELECTRICITY SEGMENT: LONG-TERM GROWTH TARGET U.S. Guadeloupe Guatemala Honduras Ethiopia Indonesia New Zealand Construction & development Business development & exploration Geographic expansion target (MW)(1) Growth target (MW)(1) 2014 2018 2022 Target 1,150 910 647 US International 2014 2018 2022 T

  13. Slide 13: Expansion to New Activities: Energy Storage Market

    EXPANSION TO NEW ACTIVITIES: ENERGY STORAGE MARKET Vertical integration as a platform to grow in the storage market Development Engineering Procurement Construction Operation Development Inverter and Pipeline battery Copyright © 2019 Ormat Technologies, Inc. 13

  14. Slide 14: Energy Storage

    ENERGY STORAGE • Two 20MW/20MWh utility scale energy storage systems in New Jersey • two systems commenced operation during Q1 2019 • New 10MW/12.5MWH system under construction in Georgetown, Texas • provide frequency regulation and load shifting services to ERCOT • Vallecito battery Energy - 10 MW

  15. Slide 15: Funding Growth

    FUNDING GROWTH • Global expansion - risk mitigation aspects • Portfolio approach - diversification • Host country guarantee • Project finance (OPIC, ADB, DEG and AFDB) • Political risk insurance • Competitive pricing (1) (1) ’ these are potential sources of funding and financial support. Copyright ©

  16. Slide 16: Financing Update – Secured $240M of Capital

    FINANCING UPDATE – SECURED $240M OF CAPITAL IN THE LAST 12 MONTHS • DEG Loan • $42M unsecured notes with DEG for the Olkaria III recent enhancement • Fixed interest rate of 6.04%, maturity in June 2028 • Migdal Corporate Loan • Additional $50M under the senior unsecured notes from Migdal • Fixed int

  17. Slide 17: Strong Execution - Revenue ($M)

    STRONG EXECUTION - REVENUE ($M) $720 $694 $662 8 3 $595 $559 202 225 226 177 219 $199 $185 510 436 466 4 376 3 382 49 52 133 143 Q1 2018 Q1 2019 2014 2015 2016 2017 2018 Electricity Products Other Copyright © 2019 Ormat Technologies, Inc. 17

  18. Slide 18: Strong Execution - Adjusted EBITDA ($M)

    STRONG EXECUTION - ADJUSTED EBITDA(1) ($M) By Segments -2% $368 13% $344 $324 FY 2018 $291 $273 89% 0% 18% $103 FY 2017 $98 $102 82% Q1 2018 Q1 2019 Q1 2019 2014 2015 2016 2017 2018 Electricity W/O Puna Products Other (1) See appendix for Adjusted EBITDA reconciliation Copyright © 2019 Ormat Technol

  19. Slide 19: Well Positioned to Support Growth

    WELL POSITIONED TO SUPPORT GROWTH Total Debt ($M) Net Debt ($M)(1) $1,268 $1,245 $1,090 $1,073 $1,001 $939 $868 $817 $920 $914 509 502 $685 $674 324 280 273 305 677 640 666 759 743 609 2014 2015 2016 2017 2018 31-Mar-19 2014 2015 2016 2017 2018 31-Mar-19 Project Finance Corporate Debt Net Debt(1) to

  20. Slide 20: Investment Highlights

    INVESTMENT HIGHLIGHTS Sustainable Efficient operation Well positioned ESG Investment growth • Market leader • Focus on increasing • Strong cash flow • Pure play in the • Substantial and growing efficiencies • Strong balance sheet renewable sustainable cash flow from operation • Improving margins • A

  21. Slide 21: Thank You!

    THANK YOU! Contact IR: Smadar Lavi VP Corporate Finance and Head of Investor Relations 775-356-9029 (ext. 65726) slavi@ormat.com Copyright Copyright©©2019 2019Ormat OrmatTechnologies, Technologies,Inc. Inc. 21

  22. Slide 22: Adjusted EBITDA ($M)

    ADJUSTED EBITDA1 ($M) Total adjusted EBITDA Electricity segment Product segment Other segment $3.4M (3.4%) +$8.2M (9.2%) -$4.9M (-45.5%) $0.2M (13.7%) $96.8 $101.8 $103.0 $98.4 $88.7 95% of total adjusted EBITDA 90% of total adjusted EBITDA $10.8 $5.9 ($1.1) ($1.0) Q1 2018 Q1 2019 Q1 2019 Q1 2018 Q1

  23. Slide 23: FY 2018 - Adjusted EBITDA ($M)

    FY 2018 - ADJUSTED EBITDA1 ($M) Total adjusted EBITDA Electricity segment Product segment Other segment $24.1M (7%) +$43.9M (15.5%) -$14.3M (-23.3%) $343. $368.0 8 $327.6 $283.7 89% of total adjusted EBITDA 82% of total adjusted EBITDA $61.5 $47.2 2017 2018 2017 2018 2017 2018 2017 2018 ($1.4) ($6.8

  24. Slide 24: Reconciliation of EBITDA and Adjusted EBITDA, Three Months Ended March 31

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FOR THE THREE MONTHS PERIODS ENDED MARCH 31, 2019 AND 2018 (UNAUDITED) We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortizatio

  25. Slide 25: Reconciliation of EBITDA and Adjusted EBITDA, Three and Twelve Months Ended December 31, 2018

    RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FOR THE THREE AND TWELVE MONTHS PERIODS ENDED DECEMBER 31, 2018 AND 2017 (UNAUDITED) We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation a

  26. Slide 26: 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, 2017, 2016, 2015 and 2014. Year Ended December 31, 2017 2016 2015 2014 Net Income.............................................

  27. Slide 27: Reconciliation of Non-GAAP Financial Measures

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Year Ended December 31 March 31 2019 2018 2017 2016 2015 2014 Cash and cash equivalents and Restricted cash (in millions $) Cash and cash equivalents 79 99 48 230 186 40 Restricted cash and cash equivalents 93 79 49 34 50 93 172 178 97 264 235 133 Total

Ormat Technologies — Investor Presentation (May 2019) on 6ix