Slide 1: Ormat Technologies, Inc. Investor Presentation
ORMAT TECHNOLOGIES, INC. INVESTOR PRESENTATION NOVEMBER 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 Own & Operate 60 1.5GW ~ 1,600 Years of Geothermal, Storage, Employees experience Solar PV & REG1 $ 829M $ 482M $ 124M 2023 revenues 2023 adj. EBITDA2 2023 Net income3
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 215MW 187MW 355MW/ 920MWh $ 492 M ~$ 61 M New capacity Electricity Energy Storage Capital Raised2 Cash Tax Benefits under construction & under construction & development development Electricity Geothermal – 125MW Texas – 220MW/440MWh $357M corporate debt $14M transferable PTC Organic
Slide 7: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH 4.1x Net debt to Access to multiple sources of liquid capital Adj. EBITDA2 $143M $674.6M Expected CapEx Total for Q4 20241 liquidity3 47% Net debt to capitalization2 (1) For details on CapEx please see appendix slides (2) For key fi
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
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 1st Largest geothermal owner & operator1 STAR ENERGY PERTAMINA ORMAT CALPINE² Reykjavik KENGEN ABOITIZ ENEL EDC CFE ~ 16.5GW 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 1.7 Po
Slide 11: Key Factors Driving Ormat's Accelerated Geothermal Development in the U.S.
KEY FACTORS DRIVING ORMAT’S Increased PPA prices support long-term portfolio growth ACCELERATED GEOTHERMAL DEVELOPMENT IN THE U.S. Over 200 MW portfolio $/MWh PPA under negotiation 110 100 150MW portfolio 90 PPA signed Up to 260 MW portfolio PPA 80 signed 70 60 INCREASED DEMAND PPAS IRA EXPLORATION
Slide 12: Key Drivers - Demand
KEY DRIVERS - DEMAND 35GW-47GW incremental power demand expected by 20301,2 Data Centers Electrification EVs Reshoring AI and cloud-driven Homes and businesses sales were up Increase in construction data centers sparking use more electricity 50% to ~ 1.46 M of manufacturing facilities a surge in ene
Slide 13: Key Driver - IRA Signed Into Law
KEY DRIVER – IRA SIGNED INTO LAW AUG. 16 ,2022 STRONG TAILWIND PTC – UP TO $351 PER MWH ITC - UP TO 50% (1) for projects beginning construction For the first time, ITC for stand- INFLATION REDUCTION before January 1, 2025 alone energy storage assets ACT (IRA) BENEFITS TO THE BENEFITS TO THE GEOTHERM
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 r
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 135MW
Slide 18: Key Factors Driving Accelerated Energy Storage Development
KEY FACTORS DRIVING ORMAT’S ACCELERATED ENERGY STORAGE DEVELOPMENT 58% DECREASE IN LITHIUM PRICES LTM1 YTD Lithium Carbonate Price (CNY/T) 163,375 160,000 140,000 120,000 100,000 80,000 IRA Batteries Increased demand Strong pipeline 68,768 tax benefits price reduction for RA and tolling in CA with s
Slide 19: Energy Storage Pipeline
ENERGY STORAGE PIPELINE Rabbit Hill storage facility, TX, USA 10MW/10MWh ~3.3GW/12.5GWh 31 potential capacity of named U.S. storage pipeline prospects GEOGRAPHICAL Others 275 BREAKDOWN (MW) Texas 380 490 1 East Coast WECC 530 California 1,638 1) East coast market includes PJM, ISO-NE, NYISO and SERC
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 94% ~$200 M3 Backlog Geothermal New contract as of November 5, 2024 contracts signed for Te Mihi Stage 2 Backlog Recovery($M) Geographic Breakdown 9% 15% 35% 165 5% 50 36% New Zealand Dominica 1) Backlog as of November 5th, 2024. The backlog
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) +780-8802 Storage (MW) 1.3GW +530-6302 Electricity (MW) Electricity (MW) Accelerate 2 2 +335-355 +535-635 storage capacity to establish leading Addition
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: Guadeloupe- Bouillante 10 Q4 2025 ✓ 125MW Dominica 10 Q4 2025 ✓ from New Zealand – Topp 2 50 Q4 2025 ✓ 10 projects Cove
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 Bottleneck storage facility, CA, USA 80MW/320MWh 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% NEW Full Tolling 355 MW/ 920 NJ – Montague 20 20 30% Q1 2025 Merchant
Slide 30: 2024 Guidance ($M)
2024 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA 875-893 710-715 130-138 35-40 540-555 +6% +7% Flat +30% +14%3 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 202
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) 1,500 1,385 1,158 1,095 1,005 $890 957 $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) $544
Slide 33: Strong Financial Positioning
STRONG FINANCIAL POSITIONING Total Debt ($M) Net Debt ($M)1 $2,392 $2,088 $2,027 $2,215 $1,908 $1,800 $1,801 $1,456 $1,522 $1,238 $1,085 $919 2019 2020 2021 2022 2023 Sept. 30, 2019 2020 2021 2022 2023 Sept. 30, 2024 2024 Project Finance Finance liability Corporate Debt Net Debt to Capitalization (T
Slide 34: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 34
Slide 35: ESG Update
ESG UPDATE 2023 Avoided Board diversity Reporting Sustainability Emissions Report Increased female Preparing to new SEC Released and posted Ormat’s portfolio representation regulation and in Ormat’s website avoided in 2023 to 44% alignment to TCFD 2,212,518 tCO2e requirements COPYRIGHT © 2024 ORMAT
Slide 36: Attractive Investment Thesis
ATTRACTIVE INVESTMENT THESIS Strong financial positioning Robust growth potential ESG Strong balance sheet and favorable Significant, consistent Renewable asset growth leverage profile domestic growth in the U.S. supported by favorable regulation Long-term contracted International geothermal growth
Slide 37: Committed to Continued Profitable Growth
COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 37
Slide 38: Air-Cooled Binary Geothermal Power Plant
AIR-COOLED BINARY GEOTHERMAL POWER PLANT COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 38
Slide 39: Payment of Principal Due by Period ($M)
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M)1,2 AVERAGE INTEREST RATE: 4.63% ($ millions) Q4-2024 Year 2024 Long-Term non-recourse & limited recourse debt 19.2 19.2 Long Term Loans Full Recourse 26.3 26.3 Finance Liability - - Total $45.5 $45.5 Remaining Total 2024 2025 2026 2027 2028 Thereafter Long-Ter
Slide 40: CapEx for 2024
CAPEX FOR 2024 ACTUAL INVESTED TOTAL CAPEX TOTAL CAPEX ($M) IN 9M 2024 FOR Q4 2024 FOR 2024 Electricity Segment 243 65 308 Construction & Enhancements – fully released 127 40 167 Development enhancement, drillings and Exploration 55 15 70 Maintenance CapEx 61 10 71 Storage Segment 93 75 168 Product
Slide 41: P&L Highlights
P&L HIGHLIGHTS Q3 2024 Q3 2023 9M 2024 9M 2023 GAAP MEASURES Revenues ($M) Electricity 164.6 157.2 522.1 482.8 Product 37.4 39.8 100.0 83.3 Energy Storage 9.8 11.0 26.8 21.9 Total Revenues 211.8 208.1 648.9 588.1 Gross Profit ($ millions) 58.9 60.0 199.1 185.6 Gross margin (%) Electricity 30.2% 31.8
Slide 42: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Nine Months Ended September 30, Ended September 30, 2024 2023 2024 2023 Net income 24,301 36,332 88,616 94,304 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 32,771 22,227 93,01
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 Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders $22.1 $35.5 82.9 88.7 Impact
Slide 45: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES September 2023 2022 2021 2020 2019 30, 2024 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 88 196 96 240 448 71 Marketable Securities at fair value - - - 43 - - Restricted cash and cash equi