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: Q1 2023 Earnings Call Agenda
Q1 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 Highlights Revenues Gross margin Adjusted EBITDA(1) EPS/Adj. EPS $185.2M 41.1% $123.5M $0.51/0.51 +0.8% +300 bps +14.5% +54.5% / +45.7% Revenue by segment Electricity Products Storage 92% 5% $170.3M $10.0M $4.9M Electricity Products +4.8% (31.4)% (25.6)% 3% Storage (1) Fo
Slide 6: Solid Financial Performance
SOLID FINANCIAL PERFORMANCE Gross Margin by segment Total Electricity Products Energy Storage 41.1% 44.4% 6.9% (3.6)% +300 bps +260 bps _ -1,710 bps Adjusted EBITDA1 by segment Total Electricity Products Energy Storage 98% 1.5% $123.5M $120.8M $1.9M $0.8M Electricity Products +14.5% +18.4% (3.0)% (8
Slide 7: Cash and Net Debt
CASH AND NET DEBT Successfully raised $ 297M of equity Cash and Cash Equivalents, Marketable Securities Net Debt1 ($M) and restricted cash and Cash Equivalents ($M) Successfully raised 1,800 $ 100M 57 107 of new debt 397 1,556 43 Cash from 7 2 $522 operating Investment activities in CapEx (2) Debt D
Slide 8: Maintaining a Strong Capital Position
MAINTAINING A STRONG CAPITAL POSITION $150M TO SUPPORT ACCELERATED GROWTH Cash Tax benefits Reduces our Access to multiple sources of liquid capital1 capital needs2 $ 494M ~$ 1.1B 3.4x Expected Total Net debt to capital needs liquidity4 Adj. EBITDA3 for Q2-Q4 20231 40% Net debt to (1) Case flow from
Slide 9: Electricity update
Electricity update Product backlog Energy storage Regulatory tailwind COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 9
Slide 10: Electricity Operation
ELECTRICITY OPERATION Global portfolio reached 1,101 MW 1,2 Robust and balanced portfolio 1 816 MW 3 38 MW 5 150 MW 25MW 6MW U.S. Honduras Kenya North Valley Brady solar 2 40 MW 4 15 MW 6 42 MW 1 COD COD Guatemala Guadeloupe Indonesia 4.8% 3.4% 1 revenue generation 2 3 4 increase3 increase4 5 6 (1)I
Slide 11: Electricity Operation Updates
ELECTRICITY OPERATION UPDATES Puna, Hawaii Heber complex, California Olkaria, Kenya Generation reached 28MW Improved performance Increased capacity Successful drilling campaign following operation of Stands at 127 MW Heber 2 repowering Signed new PPA Newly built Heber 1 is expected Continue our effo
Slide 12: Product Backlog
PRODUCT BACKLOG 3RD PARTY CONTRACTS 23% $ 147M 221% Backlog1 Increase vs. Q1 2022 48% 14% 6% 4% 5% 94% Approx. Geothermal $ 40M contracts New contracts signed2 Geographic Breakdown New Zealand Indonesia Other 3 Philippines Guatemala Japan 1) Backlog as of May 9th, 2023.. The backlog Includes revenue
Slide 13: Energy Storage
ENERGY STORAGE $ 0.8M 19 MW/MWh Adjusted EBITDA New facilities Storage Segment Revenues Breakdown ($M) 6.6 4.9 Others (Mainly DR) 1 35MW/140MWh 3 10MW/10MWh CA TX Capacity 2 60MW/60MWh 4 2MW/5MWh Storage facilities East cost VT Q1 2022 Q1 2023 COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 13
Slide 14: Regulatory Environment
REGULATORY ENVIRONMENT US INTERNATIONAL Contribution of IRA New legislation in Turkey: benefits in Q1 2023 new opportunities to the product segment $ 4.8M Government approved new PTC1 impact on Feed in tariff for local EBITDA developers and additional incentives that sum up to approx. $118/MWh $ 1.6
Slide 15: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 15
Slide 16: Robust Growth Plan
ROBUST GROWTH PLAN 1.8GW - 1.86GW 55% - 60% 2025 portfolio target Expected MW growth vs 2022 Significantly Accelerate increase solar storage capacity & geothermal to establish leading position in the U.S. capacity storage sector COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 16
Slide 17: 2025 Growth Target
2025 GROWTH TARGET BY SEGMENTS GEOTHERMAL & ENERGY SOLAR ENERGY STORAGE YE 2025 TARGET 1,300MW-1,330MW 500MW-530MW 1,070 MWh-1,140 MWh MW ADDITION (VS 2022) 230MW-260MW 412MW-442MW MW GROWTH 21%-24% 468%-502% Change in MW growth is compared to a 1,070MW Electricity portfolio and an 88 MW storage por
Slide 18: Geothermal Development
GEOTHERMAL DEVELOPMENT Projected Expected Project PPA Capacity (MW) COD U.S - North Valley 25 YE 2023: U.S. – Dixie Valley 6 Q2 2023 44 MW from U.S - Heber Complex 8 Q2 2023 4 projects Guatemala - Zunil 5 H2 2023 U.S – Beowawe Repowering 6 Q3 2024 Indonesia - Ijen 15(1) Q4 2024 Guadeloup
Slide 19: Solar Development
SOLAR DEVELOPMENT Projected Expected Project Capacity PPA COD (MW) U.S. - Brady Solar 6 YE 2023: U.S. - Steamboat Solar 7 Q3 2023 23 MW from U.S. – North Valley Solar 6 Q3 2023 4 projects U.S. – Steamboat Hills Solar 4 Q3 2023 U.S. – Beowawe Solar 6 H1 2024 U.S. – McGinness Hills Solar 14
Slide 20: Energy Storage Development
ENERGY STORAGE DEVELOPMENT Projected Projected Expected Project Capacity PPA MWh COD (MW) NJ - Howell 7 7 Merchant YE 2023: 104 MW/124 Capacity PPA OH – Bowling Green 12 12 and Merchant MWh from 6 projects TX - Upton 25 25 Q2 2023 Merchant NJ - Andover 20 20 Q2 2023 Merchant Capacity PPA and CA – Po
Slide 21: Energy Storage Pipeline
ENERGY STORAGE PIPELINE ~3.4GW 37 potential capacity of named U.S. storage pipeline prospects Hawaii 30 1 East Coast 112 WECC 515 Texas 720 California 2,040 1) East coast market includes PJM, ISO-NE, NYISO COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 21
Slide 22: 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 TRANSITIONING TO ACCELERATED GROWTH IN STORAGE & ELECTRICITY +16%-17% SEGMENTS 1.1 GW 1.16 GW CAGR 2022-2025E Storage Prod
Slide 23: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 23
Slide 24: ESG Initiatives
ESG INITIATIVES Established an annual absolute average We are moving to strengthen our ESG commitments reduction target of 5% in Scope 1 and 2 Building our approach and policy on significant valuable measured against the issues 2019 We issued our ESG report, the fourth in accordance with GRI standar
Slide 25: COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC.
COPYRIGHT © 2023 ORMAT TECHNOLOGIES, INC. 25
Slide 26: Summary: Strengthening the Foundation, Preparing for Faster Growth
SUMMARY: STRENGTHENING THE FOUNDATION, PREPARING FOR FASTER GROWTH Executing on our Strong tailwinds growth plans expecting new support renewable 170MW in 2023 and storage energy Delivered strong Q1 Recovery in Product results segment backlog driven by new assets backlog stands and IRA benefits at $
Slide 27: Committed to Continued Profitable Growth
COMMITTED TO CONTINUED PROFITABLE GROWTH IR@ORMAT.COM
Slide 28: Payment of Principal Due by Period ($M)
PAYMENT OF PRINCIPAL DUE BY PERIOD ($M) AVERAGE INTEREST RATE: 4.14% Q2-2023 Q3-2023 Q4-2023 Year 2023 Long-term non-recourse debt & limited recourse debt 15.1 14.4 15.8 45.3 Long-term loans (full recourse) 46.0 23.2 18.3 87.5 Finance Liability 0.0 10.3 0.0 10.3 Total $61.1 $47.9 $34.1 $143.1 Remain
Slide 29: CapEx for 2023
CAPEX FOR 2023 ACTUAL INVESTED TOTAL CAPEX ($M) IN Q1 2023 FOR Q2-Q4 2023 Electricity Segment 96 302 Construction & Enhancements – fully released 56 122 Development enhancement, drillings and Exploration 12 89 Puna restoration (including drilling) 7 18 Olkaria recovery, partially released for constr
Slide 30: P&L Highlights
P&L HIGHLIGHTS Q1 2023 Q1 2022 Change (%) GAAP MEASURES Revenues ($M) Electricity 170.3 162.5 4.8 % Product 10.0 14.6 (31.4) % Energy Storage 4.9 6.6 (25.6) % Total Revenues 185.2 183.7 0.8 % Gross Profit ($ millions) 76.1 69.9 7.8 % Gross margin (%) Electricity 44.4 % 41.8 % 260 bps Product 6.9 % 6
Slide 31: Reconciliation of EBITDA and Adjusted EBITDA
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (DOLLARS IN THOUSANDS) Three Months Ended March 31, 2023 2022 Net income 33,461 22,793 Adjusted for: Interest expense, net (including amortization of deferred financing costs) 21,780 20,739 Income tax provision (benefit) 8,885 10,163 Adjustment to investm
Slide 32: 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, 2023 2022 (in millions, except for EPS) GAAP Net income attributable to the Company's stockholders $29.0 $18.4 Write-off of related to Energy Storage projects and activity —
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES March 31, 2023 Cash and cash equivalents, marketable securities and Restricted cash (in millions $) Cash and cash equivalents 415 Restricted cash and cash equivalents 107 Total cash and cash equivalents, marketable securities and Restricted cash (in mill