Slide 1: Ormat Technologies, Inc. Earnings Call
ORMAT TECHNOLOGIES, INC. EARNINGS CALL NOVEMBER 7, 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: Q3 2024 Earnings Call Agenda
Q3 2024 EARNINGS CALL AGENDA 01 02 03 04 Delivering strong Increasing our Advancing profitable Remaining committed financial performance portfolio growth to a sustainable future COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 3
Slide 4: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 4
Slide 5: Solid Financial Performance
SOLID FINANCIAL PERFORMANCE Q3'24 comparisons vs. Q3'23 Revenues Gross margin Adjusted EBITDA(1) EPS/Adj. EPS $211.8M 27.8% $137.7M $0.36/$0.42 +1.8% vs 28.8% +16.3% (39.0)%/ (10.6)% 9-month '24 comparisons vs. 9-month '23 Revenues Gross margin Adjusted EBITDA(1) EPS/Adj. EPS $648.9M 30.7% $405.0M $
Slide 6: Revenues by Segment
REVENUES BY SEGMENT Q3'24 comparisons vs. Q3'23 Total Electricity Products Energy Storage 78% 18% $211.8M $164.6M $37.4M $9.8M Electricity Products +1.8% +4.7% (6.2)% (11.1)% 4% Storage 9-month '24 comparisons vs. 9-month '23 Total Electricity Products Energy Storage 81% 15% $648.9M $522.1M $100.0M
Slide 7: Gross Margin by Segment
GROSS MARGIN BY SEGMENT Q3'24 comparisons vs. Q3'23 Total Electricity Products Energy Storage 27.8% 30.2% 19.2% 20.2% vs 28.8% vs 31.8% vs 18.7% vs 22.9% 9-month '24 comparisons vs. 9-month '23 Total Electricity Products Energy Storage 30.7% 34.5% 16.0% 11.5% vs 31.6% vs 35.5% vs 13.9% vs 11.2% (1)
Slide 8: Adjusted EBITDA by Segment
(1) ADJUSTED EBITDA BY SEGMENT Q3'24 comparisons vs. Q3'23 Total Electricity Products Energy Storage 82% 10% $137.7M $112.8M $13.2M $11.6M Electricity Products +16.3% +5.5% +105.7% +131.8% 8% Storage 9-month '24 comparisons vs. 9-month '23 Total Electricity Products Energy Storage 89% 7% $405.0M $35
Slide 9: Regulatory Financial Impact of IRA
REGULATORY FINANCIAL IMPACT OF IRA BOOST Q3 2024 2024 outlook Income attributable to sale of tax Benefit under Income tax (provision) ($M) benefits ($M) $19.8 Expecting $41.2 million benefit on an annual basis that will be $14.9 7.0 recorded proportionally 2.4 throughout the year. 12.5 12.7 Cash pro
Slide 10: Cash and Net Debt
CASH AND NET DEBT Cash and Cash Equivalents and restricted cash Net Debt1 ($M) Successfully and Cash Equivalents ($M) raised $ 492M 3 of new debt in 2,215 last 9 months $ 252 $ 12 $275 of 2024 Non- Controlling& 1,801 $ 487 Others $360 Cash from operating Acquisition 4.63% activities Weighted average
Slide 11: 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 $674.6M Expected CapEx Total for Q4 20241 liquidity3 47% Net debt to capitalization2 (1) For details on CapEx please see appendix slides (2) For key fi
Slide 12: Electricity update
Electricity update Product backlog Energy storage COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 12
Slide 13: Electricity Operation
ELECTRICITY OPERATION Robust and balanced portfolio Global portfolio reached 1,230MW 1,2 1 950MW 3 33MW 5 150MW U.S. Honduras Kenya 7.9% 10.3% 2 40MW Guatemala 4 15MW 6 42MW 1 Indonesia Generation Guadeloupe Revenue increase vs increase vs 9-month 9-month 2023 2023 1 4 2 187MW under development : 3
Slide 14: Electricity Operation Updates
ELECTRICITY OPERATION UPDATES Puna, Olkaria, Dixie Valley, NV Energy Hawaii Kenya U.S. Curtailment Higher generation Capacity payment Maintenance outage. Curtailment due and higher prices for 147MW Currently in the final to T-line per MWh Revenue increase stages of completing maintenance by NV Energ
Slide 15: Product Backlog
PRODUCT BACKLOG TAOM, NZ 28MW 3RD PARTY CONTRACTS 9% ~$ 165M 14% 15% 35% Backlog1 Decrease vs. Q3 2023 and flat 5% vs Q2 2024 94% 33M 36% ~$ Geothermal Of new contracts contracts added in Q3 2024 Geographic Breakdown New Zealand Dominica Guatemala Portugal Others2 1) Backlog as of November 5th, 2024
Slide 16: Energy Storage Operation
ENERGY STORAGE OPERATION Current operating portfolio Storage revenues breakdown ($M) by type and region Q3 9-month Signed 15-year RA agreement for Shirk 7.1 80MW/320MWh 5.9 2.2 2.4 19.8 16.0 8.9 7.4 Q3 23 Q3 24 9M 23 9M 24 Signed first tolling Fixed agreements in Texas Merchant for two facilities (6
Slide 17: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 17
Slide 18: 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 19: 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 20: 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 21: 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% Full Tolling 355 MW/ 920 NJ – Montague 20 20 30% Q1 2025 Merchant MWh
Slide 22: 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 East Coast 1 490 WECC 530 California 1,638 1) East coast market includes PJM, ISO-NE, NYISO and SERC
Slide 23: 2024 Guidance ($M)
2024 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA 875-893 710-715 130-138 35-40 540-555 +6% +7% Flat +30% +14%3 TRANSITIONING TO 2.6GW-2.8GW ACCELERATED 2.1GW-2.3GW GROWTH IN STORAGE & ELECTRICITY + 15%-17% 1.3GW CAGR SEGMENTS 2023-2028E2 Storage Solar Geothermal 202
Slide 24: Summary: Strengthening the Foundation, Preparing for Faster Self-Funded Growth
SUMMARY: STRENGTHENING THE FOUNDATION, PREPARING FOR FASTER SELF-FUNDED GROWTH Executing on our Strong growth plans tailwinds added 215MW in increased demand and prices for 9-month 2024 geothermal and energy storage driven by increased demand from data centers Delivered strong Improved profitability
Slide 25: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 25
Slide 26: ESG Update
ESG UPDATE 2023 Avoided Board diversity Reporting Sustainability Emissions Report Increased female Preparing to new SEC Released and posted Ormat’s portfolio representation regulation and in Ormat’s website avoided in 2023 to 44% alignment to TCFD 2,212,518 tCO2e requirements COPYRIGHT © 2024 ORMAT
Slide 27: COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2024 ORMAT TECHNOLOGIES, INC. 27
Slide 28: Committed to Continued Profitable Growth
COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM
Slide 29: Payment of Principal Due by Period ($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 $45.5 Remaining Total 2024 2025 2026 2027 2028 Thereafter Long-Ter
Slide 30: CapEx for 2024
CAPEX FOR 2024 ACTUAL INVESTED TOTAL CAPEX TOTAL CAPEX ($M) IN 9-MONTH 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 Pro
Slide 31: P&L Highlights
P&L HIGHLIGHTS Q3 2024 Q3 2023 9-month 2024 9-month 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
Slide 32: 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 33: 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 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES September 30, 2024 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 88 Restricted cash and cash equivalents 89 Total cash and cash equivalents, marketable securities and Restricted cash (in mi