Slide 1: Ormat Technologies, Inc. Earnings Call
ORMAT TECHNOLOGIES, INC. EARNINGS CALL
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: Q2 2023 Earnings Call Agenda
Q2 2023 EARNINGS CALL AGENDA 01 02 03 04 Delivering strong Growing our Advancing profitable Committed to financial performance portfolio growth a sustainable future COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 3
Slide 4: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 4
Slide 5: Solid Financial Performance
SOLID FINANCIAL PERFORMANCE Q2 Revenues Gross margin Adjusted EBITDA(1) EPS $194.8M 25.4% $100.9M $0.40 +15.2% vs 34.1% Q2 2022 +0.2% +100.0% H1 Revenues Gross margin Adjusted EBITDA(1) EPS $380.0M 33.0% $224.4M $0.90 +7.7% vs 36.1% H1 2022 +7.6% +69.8% (1) For key financial results and non –GAAP fi
Slide 6: Revenues by Segment
REVENUES BY SEGMENT Q2 Total Electricity Products Energy Storage 80% 17% $194.8M $155.3M $33.5M $6.0M Electricity Products +15.2% +2.7% +222.0% (19.7)% 3% Storage H1 Total Electricity Products Energy Storage 86% 11% $380.0M $325.6M $43.5M $10.9M Electricity Products +7.7% +3.8% +73.9% (22.5)% 3% Sto
Slide 7: Gross Margin by Segment
GROSS MARGIN BY SEGMENT Q2 Total Electricity Products Energy Storage 25.4% 29.6% 10.4% 1.9% vs 34.1% Q2 2022 vs 36.8% Q2 2022 vs 0.2% Q2 2022 vs 25.3% Q2 2022 H1 Total Electricity Products Energy Storage 33.0% 37.3% 9.6% (0.5)% vs 36.1% H1 2022 vs 39.4% H1 2022 vs 4.2% H1 2022 vs 19.8% H1 2022 (1) F
Slide 8: Adjusted EBITDA by Segment
(1) ADJUSTED EBITDA BY SEGMENT Q2 Total Electricity Products Energy Storage 97% 1.5% $100.9M $98.1M $1.4M $1.3M Electricity Products +0.2% +1.1% +573.9% (61.0)% 1.5% Storage H1 Total Electricity Products Energy Storage 97.5% 1.5% $224.4M $218.9M $3.4M $2.1M Electricity Products +7.6% +10.0% +53.5% (
Slide 9: Regulatory Environment
REGULATORY ENVIRONMENT Contribution of IRA U.S PTC - $27.5/MWh ITC – 30-40% of initial Claimed for geothermal investment Impacts Adj. EBITDA Claimed for Storage Impacts Net income Income attribute to signed tax equity transactions in Q2 2023 - Transferable ITC $12.3 million Q2 2023 - $9.0 million +2
Slide 10: Cash and Net Debt
CASH AND NET DEBT Successfully raised ~$ 342 M of equity in H1 Cash and Cash Equivalents, Marketable Securities Net Debt1 ($M) and restricted cash and Cash Equivalents ($M) Successfully raised $ 1,800 $ 100M $ 128 $265 of new debt in $ 1,609 H1 $ 442 Cash from operating $115 activities Investment in
Slide 11: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION $150M TO SUPPORT ACCELERATED GROWTH Expected cash tax benefits reduces our Access to multiple sources of liquid capital1 capital needs2 $ 328M ~$ 920M 3.6x Expected Total Net debt to capital needs liquidity4 Adj. EBITDA3 for H2 20231 40% Net debt to (1) Case flo
Slide 12: Electricity update
Electricity update Product backlog Energy storage Regulatory tailwind COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 12
Slide 13: Electricity Operation
ELECTRICITY OPERATION Global portfolio reached 1,107 MW 1,2 Robust and balanced portfolio 1 822 MW 3 38 MW 5 150 MW Honduras Kenya 37MW COD 3 Released projects U.S. North Valley, Dixie for construction 2 40 MW 4 15 MW 6 42 MW 1 Valley & Brady Solar Guatemala Guadeloupe Indonesia Heber 2 COD Heber 1
Slide 14: Product Backlog
PRODUCT BACKLOG TAOM, NZ 28MW 3RD PARTY CONTRACTS 22% $~ 120M 118% Backlog1 Increase vs. Q2 2022 48% 14% 5% 7% 94% Approx. 4% Geothermal $ 44M contracts New contracts signed YTD Geographic Breakdown New Zealand Indonesia Other 2 Taiwan Guatemala USA 1) Backlog as of August 2, 2023.. The backlog Incl
Slide 15: Energy Storage: 155 MW / 380 MWh
ENERGY STORAGE 62 MW/62 MWh 4 new facilities in Q2 20MW/40MWh Pomona 2 COD in July 155MW/380 MWh 1 55MW/180MWh CA 3 33MW/33MWh TX 3 new assets released for construction 2 80MW/80MWh 4 2MW/5MWh East Coast VT 1) East Coast market includes PJM COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 15
Slide 16: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 16
Slide 17: Robust Growth Plan
ROBUST GROWTH PLAN 1.9GW – 2.0GW 64% - 73% NEW 2025 portfolio target Expected MW growth vs Driven by successful 2022 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 t
Slide 18: 2025 Growth Target by Segments
2025 GROWTH TARGET CD4 part of Mammoth complex, CA, USA 65MW BY SEGMENTS GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE 600MW-670MW YE 2025 TARGET 1,300MW-1,330MW 1,470 MWh-1,700 MWh MW ADDITION (VS 2022) 230MW-260MW 512MW-582MW MW GROWTH 21%-24% 582%-661% Change in MW growth is compared to a 1,070MW Elec
Slide 19: Geothermal Development
GEOTHERMAL DEVELOPMENT North Valley, NV, USA 23MW Projected Expected Project PPA Capacity (MW) COD U.S - North Valley 25 ✓ Under U.S. – Dixie Valley 6 ✓ development: U.S - Heber Complex 8 Q3 2023 ✓ 102 MW from Guatemala – Zunil 5 H2 2023 ✓ 7 projects U.S – Beowawe Repowering 6 Q2 2024 ✓ Indonesia –
Slide 20: Solar Development
SOLAR DEVELOPMENT Projected Expected Project Capacity PPA COD (MW) U.S. - Brady Solar 6 ✓ Under development: U.S. - Steamboat Solar 7 Q3 2023 ✓ 79 MW from U.S. – North Valley Solar 6 Q3 2023 ✓ 6 projects U.S. – Steamboat Hills Solar 4 Q3 2023 ✓ U.S. – Beowawe Solar 6 H1 2024 ✓ U.S. – McGinness Hills
Slide 21: Energy Storage Development
ENERGY STORAGE DEVELOPMENT Stryker storage facility, NJ, USA 20MW/20MWh Projected Projected Expected Project Capacity PPA MWh COD (MW) NJ - Howell 7 7 Merchant Under Capacity PPA development: OH – Bowling Green 12 12 and Merchant 275 MW/ TX - Upton 23 23 Merchant 740MWh NJ - Andover 20 20 Merchant f
Slide 22: Energy Storage Pipeline
ENERGY STORAGE PIPELINE Rabbit Hill storage facility, TX, USA 10MW/10MWh ~3.3GW/11.5GWh 34 potential capacity of named U.S. storage pipeline prospects GEOGRAPHICAL Hawaii 30 BREAKDOWN 1 East Coast 112 WECC 315 Texas 600 California 2,205 1) East coast market includes PJM, ISO-NE, NYISO COPYRIGHT © 20
Slide 23: 2023 Guidance ($M)
2023 GUIDANCE ($M) (1) Total revenues Electricity Products Storage Adjusted EBITDA 823-858 670-685 120-135 33-38 480-510 +12%-17% +6%-8% +68%-89% +7%-23% +10%-17% 1.8 GW-1.86 GW 1.9 GW-2.0 GW TRANSITIONING TO ACCELERATED +18%-20% GROWTH 1.16 GW CAGR 1.1 GW 2022-2025E IN STORAGE & ELECTRICITY SEGMENT
Slide 24: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 24
Slide 25: ESG Initiatives
ESG INITIATIVES We are moving to strengthen our ESG commitments Building our approach and policy on significant valuable issues Expecting 2022 We issued our ESG report, the fourth in accordance with GRI standards and the second according to SASB ESG report to be framework. published by Established a
Slide 26: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 26
Slide 27: Summary: Strengthening the Foundation, Preparing for Faster Growth
SUMMARY: STRENGTHENING THE FOUNDATION, PREPARING FOR FASTER GROWTH Executing on our Strong tailwinds growth plans Increasing our YE 2025 support renewable growth target to 1.9- and storage energy 2.0 GW Delivered strong Q2 Recovery in Product results segment backlog driven by new assets backlog stan
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) AVERAGE INTEREST RATE: 4.13% Q3-2023 Q4-2023 Year 2023 Long-term non-recourse debt & limited recourse debt 14.1 14.3 28.4 Long-term loans (full recourse) 23.2 18.3 41.5 Finance Liability 10.3 0.0 10.3 Total $47.6 $32.6 $80.2 Remaining Total 2023 2024 2025 2026
Slide 30: CapEx for 2023
CAPEX FOR 2023 ACTUAL INVESTED CAPEX TOTAL CAPEX ($M) IN H1 2023 FOR H2 2023 FOR 2023 Electricity Segment 223 223 446 Construction & Enhancements – fully released 130 95 225 Development enhancement, drillings and Exploration 37 60 97 Puna restoration (including drilling) 24 28 52 Olkaria recovery, p
Slide 31: P&L Highlights
P&L HIGHLIGHTS Q2 2023 Q2 2022 H1 2023 H2 2022 GAAP MEASURES Revenues ($M) Electricity 155.3 151.2 325.6 313.7 Product 33.5 10.4 43.5 25.0 Energy Storage 6.0 7.5 10.9 14.1 Total Revenues 194.8 169.1 380.0 352.8 Gross Profit ($ millions) 49.5 57.6 125.6 127.5 Gross margin (%) Electricity 29.6% 36.8%
Slide 32: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Six Months Ended June 30, Ended June 30, 2023 2022 2023 2022 Net income 24,511 14,948 57,972 37,738 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 19,451 20,239 41,231 40,978 In
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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders $24.2 11.3 53.2 29.7 Write-off of Energ
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES June 30, 2023 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 275 Restricted cash and cash equivalents 120 Total cash and cash equivalents, marketable securities and Restricted cash (in milli