Slide 1: Ormat Technologies, Inc. Earnings Call
ORMAT TECHNOLOGIES, INC. EARNINGS CALL DORON BLACHAR, CEO ASSI GINZBURG, CFO MAY 3, 2022 Copyright© Copyright 2022 Ormat ©2022 Ormat Technologies, Technologies, Inc. Inc.
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: 2022 Highlights
2022 HIGHLIGHTS DELIVERING SOLID EXPANDING OUR PORTFOLIO ADVANCING PROFITABLE FINANCIAL PERFORMANCE AND IMPROVING OPERATIONAL GROWTH IN ATTRACTIVE PERFORMANCE MARKETS Copyright © 2022 Ormat Technologies, Inc. 3
Slide 4: Financial Performance
FINANCIAL 01 PERFORMANCE Copyright © 2019 Ormat Technologies, Inc. Copyright © 2022 Ormat Technologies, Inc. 4 Copyright © 2021 Ormat Technologies, Inc.
Slide 5: Solid Financial Performance
SOLID FINANCIAL PERFORMANCE Q1 22 HIGHLIGHTS Revenues Gross margin Adjusted EBITDA(1) EPS/Adjusted EPS(1,2) $183.7M 38.1% $107.9M $0.33/0.35 +10.4% -620 bps +8.7% +22.2%/-17.0% REVENUES BY SEGMENT Total Electricity Products Storage 88% 8% $183.7 $162.5M $14.6M $6.6M Electricity Products +10.4% +12.1
Slide 6: Q1 2022 Segment Contribution
Q1 2022 I SEGMENT CONTRIBUTION GROSS MARGIN Total Electricity Products Storage 38.1% 41.8% 6.9% 13.5% -620 bps -310 bps +30 bps NA ADJUSTED EBITDA(1) Total Electricity Products Storage 95% 2% $107.9 $102.1M $2.0M $3.8M Electricity Products +8.7% +7.3% +72.1% +28.9% 3% Storage (1) For key financial r
Slide 7: Q1 2022 Cash and Net Debt
Q1 2022 I CASH AND NET DEBT Cash and Cash Equivalents, Marketable Securities and restricted cash and Cash Equivalents ($M) Net Debt1 ($M) 82 137 $387 Cash from 39 $1,521 $1,579 operating activities 7 $284 Investment 2 in CapEx Debt Other Dividend Repayment December 31, March 31, 2022 December 31, 20
Slide 8: Maintaining a Strong Capital Position to Support Accelerated Growth
MAINTAINING A STRONG CAPITAL POSITION TO SUPPORT ACCELERATED GROWTH Q2-Q4 2022 expected capital $380M needs(1) to support future growth target $ 665M Cash, cash equivalents, restricted cash and available lines of credit Access to various 44% 3.9x sources of capital Net debt to Net debt to capitaliza
Slide 9: Operational Update
02 OPERATIONAL UPDATE Copyright © Copyright © 2022 2022 Ormat Ormat Technologies, Technologies, Inc. Inc. 9
Slide 10: Ormat Moves Towards Achieving Its Growth Goals
ORMAT MOVES TOWARDS ACHIEVING ITS GROWTH GOALS ELECTRICITY UPDATE PRODUCT BACKLOG ENERGY STORAGE Copyright © 2022 Ormat Technologies, Inc. 10
Slide 11: Electricity Operation
ELECTRICITY OPERATION Robust and balanced portfolio Global portfolio increased by 13MW in the quarter to 1,025 MW Tungsten Mountain 2 5 Commenced commercial operation in April 2022 4 2 1 Added 13 MW to the Tungsten complex 3 6 Dixie Valley and Beowawe Integration of Q3/21 acquired assets Contributed
Slide 12: 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.
Slide 13: 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
Slide 14: Product Backlog
PRODUCT BACKLOG 3rd parties’ contracts Backlog at $45.7M(1) - 23% increase vs last year No major contract signed this quarter Awarded over $20 million in projects – will be added to backlog once signed 5% 13% Germany 5% Guatemala 4% U.S. 18% Indonesia 8% Taiwan $45.7M Israel 91.8% Nicaragua 12% Geot
Slide 15: Energy Storage
ENERGY STORAGE Improved Adjusted EBITDA profitability 5 70.00% 4 58.4% 60.00% 4 3 50.00% 1 40.6% 3 40.00% 2 3.8 30.00% 3.0 20.00% 2 1 10.00% 0 0.00% Q1 2021 Q1 2022 Adjusted EBITDA EBITDA Margin 01 CA 02 TX Storage Segment Revenues Breakdown 30MW/120MWh 10MW/10MWh 12.7 03 NJ 04 VT 5.4 6.6 41MW/41MWh
Slide 16: Advancing Profitable Growth in Attractive Markets
ADVANCING PROFITABLE 03 GROWTH IN ATTRACTIVE MARKETS Copyright © 2019 Ormat Technologies, Inc. Copyright © 2022 Ormat Technologies, Inc. 16 Copyright © 2021 Ormat Technologies, Inc.
Slide 17: 1.5 GW - 1.6 GW 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
Slide 18: 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
Slide 19: Geothermal Projects Under Development
Projected Expected Project Capacity PPA COD (MW) U.S - Heber Complex 11 Q2 2023 U.S - CD4 30 Q2 2022 End 2022/Early Subject to PUC U.S - North Valley 25 2023 approval U.S. – Puna expansion 8 TBD suspended GEOTHERMAL U.S – Dixie Meadows 12 TBD 9 PROJECTS(2) U.S. – Dixie Valley 4 Q1 2023 GEO
Slide 20: Solar Energy Projects Under Development
Projected Expected Project PPA Capacity (MW) COD U.S - Wister Solar 20 AC Q2 2022 SOLAR U.S. - Tungsten Solar 2 9 AC Q2 2022 6 PROJECTS 66 MW AC U.S. - Brady Solar 6 AC Q1 2023 BY 2023 (half in Q2 2022 U.S. - Steamboat Solar 10 AC and half in Q2 2023) U.S. – North Valley Solar 7 AC Q1 2023
Slide 21: Energy Storage Projects Under Development
Projected Projected Expected Project Capacity PPA MWh COD (MW) Capacity PPA CA - Tierra Buena 5 20 Q2 2022 and Merchant TX - Upton 25 25 Q2 2022 Merchant NJ - Andover 20 20 H2 2022 Merchant ENERGY STORAGE 8 PROJECTS NJ - Howell 7 7 H2 2022 Merchant 189 MW/464 MWh ENERGY BY 2023 OH – Bowling Capacity
Slide 22: Energy Storage Pipeline
2.4 GW 30 230MW - 290MW/ potential capacity of named 546-666MWh U.S. storage pipeline prospects expected addition by YE 2023 ENERGY STORAGE PIPELINE Copyright © 2022 Ormat Technologies, Inc. 22
Slide 23: 2022 Guidance
2022 GUIDANCE (3) Total revenues Electricity revenues Products revenues Storage revenues Adjusted EBITDA $710M-$735M $630M-$640M $50M-$60M $30M-$35M $430M-$450M MW EXPECTATIONS ADJUSTED EBITDA EXPECTATIONS >1,500MW >$500M run-rate(2) 1,095MW $401M (1) 2021 2022 2023 2021 2022 2023 (1) For non –GAAP
Slide 24: Executing on Our Growth Plans
Executing on our growth plans COD for 13MW Tungsten Mountain 2 and on track with projects planned for Q2 2022 Delivered first quarter results Driven by growth in the Electricity segment A strong tailwinds to support renewable and storage energy Increasing demand creates better return on our investme
Slide 25: Thank You!
THANK YOU! SMADAR LAVI I VP HEAD OF INVESTOR RELATIONS AND ESG PLANNING & REPORTING 775-356-9029 (EXT. 65726) I SLAVI@ORMAT.COM Copyright © 2019 Ormat Technologies, Inc. 25 Copyright © 2022 Ormat Technologies, Inc. Copyright © 2021 Ormat Technologies, Inc.
Slide 26: Payment of Principal Due by Period
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M) AVERAGE INTEREST RATE: 4.38% Q2-2022 Q3-2022 Q4-2022 Year 2022 Long-term non-recourse debt & limited recourse debt 15.2 13.6 15.8 44.6 Long-term loans (full recourse) 45.1 236.2 13.6 294.9 Finance Liability 0.0 7.0 0.0 7.0 Total 60.3 256.9 29.5 346.6 Remaining
Slide 27: CapEx for 2022
CAPEX FOR 2022 ACTUAL INVESTED TOTAL CAPEX ($M) IN Q1 2022 FOR Q2-Q4 2022 Electricity Segment 102.1 320 Construction & Enhancements – fully released 61.1 165 Development enhancement, drillings and Exploration 15.2 86 Puna restoration (including drilling) 10.0 23 Olkaria recovery, partially released
Slide 28: P&L Highlights
P&L HIGHLIGHTS Q1 2022 Q1 2021 Change (%) GAAP MEASURES Revenues ($M) Electricity 162.5 145.0 12.1 % Product 14.6 8.6 69.2 % Energy Storage 6.6 12.7 (48.5) % Total Revenues 183.7 166.4 10.4 % Gross margin (%) Electricity 41.8 % 44.9 % (310) bps Product 6.9 % 6.6 % +30 bps Energy Storage 13.5 % 62.4
Slide 29: 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
Slide 30: 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 March 31, 2022 2021 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders $ 18.4 $ 15.3 One-time net expense related to February power crisis in Tex
Slide 31: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES March 31, 2022 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 130 Marketable Securities at fair value 43 Restricted cash and cash equivalents 111 Total cash and cash equivalents, marketable