Ormat Technologies, Inc. · NYSE:ORA

Ormat Technologies — Investor Day (September 2017)

140 slides from Ormat Technologies's investor day presentation, Sep 26, 2017

Slide 1: Welcome to Ormat 2017 Analyst and Investor Day
WELCOME TO ORMAT “a 2017 ANALYST AND LZ INVESTQR, DAY... ORMAT
Slide 2: Agenda
AGENDA 9:00 Evolving to thrive in tomorrow’s energy market Isaac Angel, CEO Market opportunity and strategy in action Bob Sullivan, EVP BD, Sales, and Marketing 10:00 Q&A & Break 10:30 Viridity Energy Solutions Inc. an Ormat Company - introduction, market outlook and strategy Raj Chudgar, President
Slide 3: Ormat Speakers Biographies
ORMAT SPEAKERS BIOGRAPHIES ISAAC ANGEL, CEO Isaac Angel commenced serving as an officer of the Company on April 1, 2014, and assumed the position of Chief Executive Officer as of July 1, 2014. From 1999 to 2006, he served in various positions at Lipman Electronic Engineering Ltd., including as its P
Slide 4: Speakers Biographies
SPEAKERS BIOGRAPHIES RAJ CHUDGAR PRESIDENT OF VIRIDITY ENERGY SOLUTIONS INC., ANORMAT COMPANY Raj Chudgar is President of Viridity Energy Solutions Inc., an Ormat Company. Mr. Chudgar brings extensive experience in the wholesale (operations and markets), TDSP (Transmission and Distribution Providers
Slide 5: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation includes Forward-Looking Statements and the disclaimer should be read carefully Forward-Looking Statements This presentation, and information provided during — this presentation, may contain “forward-looking statements” within the meaning of the Private Securi
Slide 6: Safe Harbor Statement
SAFE HARBOR STATEMENT Reconciliation to US GAAP Financial Information This presentation includes certain “non-GAAP financial measures” within the meaning of Regulation G under the Securities Exchange Act of 1934, as amended, including EBITDA and Adjusted EBITDA. The presentation of these non-GAAP fi
Slide 7: Slide 7
Slide 8: Introduction to Ormat
INTRODUCTION TO ORMAT Market leader with proven track record in the geothermal energy sector Our mission is to become a leading global renewable energy provider 340sm 1,250 350s -. FY 2017 expected 5 Adj. EBITDA = ; oS 680m 52 years 700s of experience FY 2017 expected Revenues Copyright © 2017 Ormat
Slide 13: How We Are Evolving
HOW WE ARE EVOLVING Improving efficiencies to achieve profitable growth in a market with declining energy prices Targeting customers who acknowledge geothermal value Expanding to international markets, where energy shortage is the main demand driver Developing solutions to meet customers’ new needs
Slide 14: Improving Efficiencies to Achieve Profitable Growth
IMPROVING EFFICIENCIES TO ACHIEVE PROFITABLE GROWTH Key achievements Future improvements * CapEx per MW reduction * Technological advancements « Lead-time reduction * Operational efficiencies * O&M reduction * Power plant improvements Copyright © 2017 Ormat Technologies, Inc. 14
Slide 15: How We Are Evolving
HOW WE ARE EVOLVING Improving efficiencies to achieve profitable growth in a market with declining energy prices Expanding to international markets, where energy shortage is the main demand driver Developing solutions to meet customers’ new needs in the distributed energy and energy storage markets
Slide 16: Targeting Customers Who Acknowledge Geothermal Value
TARGETING CUSTOMERS WHO ACKNOWLEDGE GEOTHERMAL VALUE ° Geothermal value e Firm (base-load) and flexible ° No integration cost e Dispatchable ° US: shift focus from |OUs to POUs, C&l and CCA! std OF BURB ay, IID =& Los Angeles A century of service Pa | Department of Water & Power SCP PRA (1) 10Us-Inv
Slide 17: How We Are Evolving
HOW WE ARE EVOLVING Improving efficiencies to achieve profitable growth in a market with declining energy prices Targeting customers who acknowledge geothermal value Developing solutions to meet customers’ new needs in the distributed energy and energy storage markets Copyright © 2017 Ormat Technolo
Slide 18: Diversifying Customer Base
DIVERSIFYING CUSTOMER BASE ° Expand regions to diversify customer base with international customers © Added three new regions to our portfolio © Plan to further diversify our portfolio ° 0 9 Vee @ Existing regions @ Added new regions Q Q Future targeted regions Copyright © 2017 Ormat Technologies, I
Slide 19: How We Are Evolving
HOW WE ARE EVOLVING Improving efficiencies to achieve profitable growth in a market with declining energy prices Diversifying customers base Expanding to international markets, where energy shortage is the main demand driver Copyright © 2017 Ormat Technologies, Inc. 19
Slide 20: Identify and Meet Customers' New Needs
IDENTIFY AND MEET CUSTOMERS’ NEW NEEDS ° Established storage group to execute strategy ° Acquired Viridity energy business ° Developing our battery storage as a service (BSAAS) strategy Copyright © 2017 Ormat Technologies, Inc. 20
Slide 21: Providing Integrated Distributed Energy Resources (DER) Services
PROVIDING INTEGRATED DISTRIBUTED ENERGY RESOURCES (DER) SERVICES Funding & EPC Customer ....------- BSAAS /DRAAS wcrrtt7? Electric Grid (Utilities and Systems —~— C&l) rid Software Copyright © 2017 Ormat Technologies, Inc. 21
Slide 22: Creating a Platform for Continued Profitable Growth
CREATING A PLATFORM FOR CONTINUED PROFITABLE GROWTH Increased growth Revenue Generation — Net income Improved profitability Attributable to the Company's stockholders Adjusted EBITDA Improved returns Dividend per Share +100% ROE Expanded to new regions # of countries +100% Percentages above reflect
Slide 23: Market Opportunity and Strategy in Action
MARKET OPPORTUNITY ~~ AND STRATEGY LZ IN ACTION. Wi ORMAT “BOB SULLIVAN = a “re wee. — ue” EXECUTIVE VICE ht © 2017 Ormat Technologies, Inc.
Slide 24: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation includes Forward-Looking Statements and the disclaimer should be read carefully Forward-Looking Statements This presentation, and information provided during — this presentation, may contain “forward-looking statements” within the meaning of the Private Securi
Slide 26: Core Market Expansion
CORE MARKET EXPANSION DOMESTIC GEOTHERMAL MARKET GROWTH STRATEGY Core market New market Capability expansion expansion development Copyright © 2017 Ormat Technologies, Inc. 26
Slide 27: Global Trends & Demand Drivers
GLOBAL TRENDS & DEMAND DRIVERS Decarbonization Developed countries Distributed energy resources (DER) Demand driver Access to energy Developing countries Copyright © 2017 Ormat Technologies, Inc. 27
Slide 28: US Trends & Demand Drivers
US TRENDS & DEMAND DRIVERS POUs- Public Owned Utilities; C&l - Commercial and Industria! Going green Increasing Renewable Portfolio Standards (RPS) Increased demand from C&l customers, POUs and CCAs Pricing * Lower solar PV and wind cost to increase deployment ¢ Low fossil fuel pricing ¢ Ormat’s low
Slide 29: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET ° RPS: a short and recent legislative history © California SB 350 became effective in 2015- increased mandate to 50% in 2030 from 33% in 2020 Senate passed SB 100, proposing to increase the renewable mandate to 100% by 2045 - failed in Assembly Los Angeles, San Fra
Slide 30: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET ° RPS: a short and recent legislative history e Nevada ® SB 358 increased mandate to 25% from 20% by 2025 ® 2017 ballot initiative for electricity deregulation passed © Assembly and Senate passed 40% RPS- vetoed by Governor Copyright © 2017 Ormat Technologies, Inc.
Slide 31: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET California RPS targets 50% 45% 40% 33% 25% 2016 2020 2024 2027 2030 m@ Actual renewable generation m= Future renewable procurement Source: DSIRE and CEC Copyright © 2017 Ormat Technologies, Inc. 31
Slide 32: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET SP15 Day-Ahead Prices Increasing attention given to . Second Sndoy nA resource diversity ° e During 2016, utility-scale solar PV ° capacity in California grew by ic =~ another 50% e Negative midday pricing in day Da LS EY ahead market and spiking during 7 a ramp pe
Slide 33: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET The impact of solar PV on the electric grid e Curtailment Volume of power curtailments (in megawatt-hours) BOK oeenne--- ccssoeesssneessanessneeesneesnneessaves secssueeeseees cessoesssuesssveessneesneeeseneee a 82,083 GOK svvevsvinsnsvvnnnntnvinitnnineivnnnsiisnss
Slide 34: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET The impact of higher penetration of solar PV power on the electric grid Integration cost 7 Curtailment a Transmission Copyright © 2017 Ormat Technologies, Inc. 34
Slide 35: Trends in the US Geothermal Market
TRENDS IN THE US GEOTHERMAL MARKET ° Geothermal value proposition ° Net cost of a renewable energy contract: solar compared to geothermal ° Increasing solar penetration increases the relative value ~ | + Ancillary services/ Flexibility value $42/MWh Additional real cost of solar PV to the grid Solar
Slide 36: Customers' View on Geothermal Value
CUSTOMERS’ VIEW ON GEOTHERMAL VALUE 1O0Us POUs SOUTHERN CALIFORNIA § CPPA PUBLIC POWER AUTHORITY Los Angeles Department of Water & Power C&lI - short term C&l - long-term CCA |OUs-Investor Owned utilities; POUs- Public Owned Utilities; C&l - Commercial and _ - . Industrial; CCA- Community Choice Agg
Slide 37: Strategy in Action - Changing the Marketplace
STRATEGY IN ACTION - CHANGING THE MARKETPLACE ° First-of-its-kind portfolio PPA with SCPPA for 150 MW e Minimum capacity - 1355 MW; Maximum capacity - 185 MW e Covers new projects and re-contracting of existing power plants Acknowledgments of solar PV true costs Supporting process La Cost reductions
Slide 38: SCPPA Portfolio PPA
SCPPA PORTFOLIO PPA ° New projects and re-contracting of existing power plants e Nearly 145 MW of new development by the end of 2022 e About 40 MW of existing power plants re-contracting Projects By YE 2018 By YE 2020 By YE 2022 Tungsten Mountain 24 McGinness 3 48 SB Hills Re-contracting 12 Brady Re
Slide 39: US Development to Support Future Growth
US DEVELOPMENT TO SUPPORT FUTURE GROWTH 4 sites under construction ches 24 prospects under exploration and development to Initial construction: 1 site Exploration: 3 sites support our commitment under SCPPA Portfolio PPA and growth beyond 2022 NV Construction: 3 sites Exploration: 15 sites OR Explor
Slide 40: Portfolio Shifting Towards POUs, C&I, CCA
PORTFOLIO SHIFTING TOWARDS POUs, C&I, CCA CUSTOMER BASE US geothermal portfolio by customer type (MW)! 2014 2017E 2022 Target wIOU mPOU gIOU mPOU wIOU mPOU C&l, CCA (1) 2022 target is based on existing prospects and business development plans as of August 31, 2017 |OUs-Investor Owned utilities; POUs
Slide 41: Core Market Expansion
CORE MARKET EXPANSION INTERNATIONAL GEOTHERMAL MARKET GROWTH STRATEGY Core market New market Capability expansion expansion development Copyright © 2017 Ormat Technologies, Inc. 41
Slide 42: Trends in the International Market
TRENDS IN THE INTERNATIONAL MARKET ° Growth driven by significant shortage in electricity ° Paris climate accord ° Government agencies invest capital in developing countries ° OPIC, DEG, AFDB, ADB, GRMF Electricity shortage (% of population) 100% Africa Asia LATAM 80% 60% 40% ~ lh. | | | 0% Wh. Wt.
Slide 44: Africa
AFRICA Kenya Operation: 139 MW (Olkaria II). PPA for additional 50MW in place Construction: 1 site Prospects: 1 Ethiopia 4 concessions * Negotiating PPA * Expect to build two projects by 2022 Copyright © 2017 Ormat Technologies, Inc. 44
Slide 45: Asia Pacific
ASIA PACIFIC Indonesia Operation: 14 MW (Sarulla SIL) Construction: 2 sites Multiple prospects China Nw: Multiple prospects a My Japan Multiple prospects f New Zealand 1 prospect Corporation agreement with ORIX Enhance and accelerate strategic growth plans in the renewable energy market leveraging O
Slide 46: Latin America and Caribbean
LATIN AMERICA AND CARIBBEAN Guatemala Guadeloupe Operation: 43 MW Operation: 15 MW (Amatitlan and Zunil) (Bouillante) as Prospects: 2 sites Construction: 1 site Prospect: 1 site Honduras Operation: 35 MW (Platanares) Prospects: 1 site Mexico Multiple prospects Copyright © 2017 Ormat Technologies, In
Slide 47: Strategy in Action - Electricity Segment
STRATEGY IN ACTION- ELECTRICITY SEGMENT Growth target (MW)! 1,150 800 647 _ 2014 2017E 2022 Target Geographic expansion target (MW)! 2014 2017E 2022 Target 0OOQO BUS minternational (1) MW growth target and geographic breakdown are based on existing prospects and business development _ plans as of Au
Slide 49: Product Segment Targeted Geographies
PRODUCT SEGMENT TARGETED GEOGRAPHIES AN ay US Gy Qype Turkey Japan, EN. Indonesia, XyZ Philippines, China chile 2X SP LY. QyZ New Zealand °* Ormat advanced its technology to efficiently utilize low and high enthalpy resources ° Proven track record * Competitive prices Copyright © 2017 Ormat Technolo
Slide 50: Turkey as an Example: Main Ingredients for Geothermal Growth
TURKEY AS AN EXAMPLE: HAVING THE MAIN INGREDIENTS FOR GEOTHERMAL GROWTH Geothermal Potential Electricity Demand Regulatory Frameworks Government Support Commercial Viability Funding Extended to 2025! The result: 60% CAGR of installed capacity between 2006-2016 Copyright © 2017 Ormat Technologies, In
Slide 51: Ormat Is the Main Contributor to Turkey Geothermal Market Growth
ORMAT IS THE MAIN CONTRIBUTOR TO TURKEY GEOTHERMAL MARKET GROWTH Accumulated installed capacity by technology provider 2006-2016 2006-2018E 4% 5% 3% 7% 7% 1% 38% 4% 11% 45% 16% 13% 20% 16% = Ormat mExergy Atlas Copco = Toshiba = Mitsubishi Fuji TAS Source: Ormat analysis. 2018 expected market share
Slide 52: Strategy in Action
STRATEGY IN ACTION ° Product segment revenues are less visible ° Targeting expansion towards profitable and stable revenues Target revenue breakdown between segments! 2014 2017E 2022 Target mElectricity mProduct (1) Revenue breakdown target is based on revenue target which includes revenues from ele
Slide 53: New Market Expansion
NEW MARKET EXPANSION EXPANDING TO ENERGY STORAGE MARKET BY LEVERAGING OUR CORE CAPABILITIES Core market New market Capability expansion expansion development Copyright © 2017 Ormat Technologies, Inc. 53
Slide 54: Growing by Leveraging Our Core Capabilities
GROWING BY LEVERAGING OUR CORE CAPABILITIES Geothermal Leader in: REG Binary Solar PV EPC Technology Combined cycle REG Exploration Binary [ceverie Combined cycle Government agencies Steam Global Global Financiers REG operations experience Drilling REG- Recovered Energy Generation Copyright © 2017 O
Slide 55: Ormat Competitive Advantages
ORMAT COMPETITIVE ADVANTAGES Vertical integration as a strategic advantage gel Development Exploration Drilling Engineering Manufacturing Construction Operation UG Geothermal Storage REG- Recovered Energy Generation Copyright © 2017 Ormat Technologies, Inc. 55
Slide 56: Ormat Competitive Advantages
ORMAT COMPETITIVE ADVANTAGES Vertical integration as a platform to grow in the storage market Development Engineering Manufacturing Construction Operation Procurement Copyright © 2017 Ormat Technologies, Inc. 56
Slide 59: Summary
SUMMARY Focused on growing our electricity sales e Global project pipeline to support growth target Unique value proposition e Geothermal e Ormat technology Energy market transformation e New customers and new technical approaches to serving customers e BSAAS systems Ormat is uniquely positioned to
Slide 60: Viridity Energy Solutions, an Ormat Company
"@\ <A viridity energy Company VIRIDITY ENERGY SOLUTIONS, INC. AN ORMAT COMPANY RAJ CHUDGAR, PRESIDENT Copyright © 2017 Ormat Technologies, Inc. 60
Slide 61: Safe Harbor Statement
Safe Harbor Statement This presentation includes Forward-Looking Statements and the disclaimer should be read carefully Forward-Looking Statements This presentation, and information provided during — this presentation, may contain “forward-looking statements” within the meaning of the Private Securi
Slide 62: Introduction
INTRODUCTION Unique holistic offering that combines energy storage, demand response and energy management Value stacking created one of the highest $ per MW revenue in the industry Highly experienced staff Serves i iat | ERCOT, NYISO, a PJM, ISO-NE, ba IESO & Regulated \ 4, 000+° Utilities C&l *res/
Slide 64: The Energy Market Is Transforming
THE ENERGY MARKET IS TRANSFORMING ° Intelligence and capability is moving from the Core to the Edge of the network ¢ Think Distributed Generation/Virtual Generation Gradual First wave of EDGE EDGE Government Technology Technology Technology Deregulation Innovation Expansion * Generators * Wind * Win
Slide 65: US Battery Storage Explosion Has Started
US BATTERY STORAGE EXPLOSION HAS STARTED AND IS PROJECTED TO CONTINUE 944% Growth 1Q 2016 to 1Q 2017 (MWh) Q1 2014 Q22014 3 2014 Q42014 Q1 2015 Q2 2015 Q3 2015 042015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 W Residential m Non-Residential m™ Utility Source: GTM Research, a Wood Mackenzie Business Co
Slide 66: Battery Storage Market Outlook
BATTERY STORAGE IS THE NEXT SOLAR/WIND IN ENERGY EVOLUTION - MARKET OUTLOOK US - 2.6GW annual US- 7.3GWh deployed by 2022 deployments by 2022 22x growth from 2016 : Ga 1,559 a1 201 = = a 2016 20176 20186 2019E 2020E 20216 2016 2017E 2018 2019E 2020E 2021E 2022E Global - 35GW deployed by 2025 2017 20
Slide 67: Battery Storage Market Outlook
BATTERY STORAGE IS THE NEXT SOLAR/WIND IN ENERGY EVOLUTION - MARKET OUTLOOK ($ Millions) Source: Navigant and GTM Research, a Wood Mackenzie Business Global - $15b market by 2024 $18,000 ™North America $16,000 Western Europe $14,000 mEastern Europe mAsia Pacific $12,000 Latin America Middle East $10
Slide 68: US Battery Storage Explosion: Utility Deployment
US BATTERY STORAGE EXPLOSION HAS STARTED AND IS PROJECTED TO CONTINUE 15x utility deployment (MWh) growth from 2016 California, Texas and PJM to lead market growth 3,956 3,097 2021E 2022E Source: GTM Research, a Wood Mackenzie Business Copyright © 2017 Ormat Technologies, Inc. 68
Slide 69: US Battery Storage Explosion: C&I Deployment
US BATTERY STORAGE EXPLOSION HAS STARTED AND IS PROJECTED TO CONTINUE 18x C&l deployment (MWh) growth from 2016 California and Massachusetts to lead market growth 1,324 1,024 806 634 437 250 2 [4 2016 2017E 2018E 2019E 2020E 2021E 2022E Source: GTM Research, a Wood Mackenzie Business Copyright © 201
Slide 70: Battery Storage Growth Driven by Price Declines
BATTERY STORAGE GROWTH IS DRIVEN BY PRICE DECLINES, VOLUME AND GOING GREEN Battery storage system pricing trends! $M $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 2013 2014 «2015 «2016 = 2017, 2018) 20192020) 2021 = 2022 C&l1Hour mam Utility 2 Hour mam Utility 30Min m Average Price (1) Analy
Slide 71: Policy and Regulations Developments
POLICY AND REGULATIONS DEVELOPMENTS ° FERC e Rule 775 e Considering changes to remove barriers to entry for storage and improvements and adjustments to the storage markets ° ISOs and RTOs markets! have recently affirmed: e DR participation in capacity and ancillary markets should increase; e Enhance
Slide 72: Energy Storage 2017 - Boom!
ENERGY STORAGE 2017 - BOOM! 944% growth 2016-2107 Storage prices falling Lithium-ion continues to dominate New “tail wind” regulations Copyright © 2017 Ormat Technologies, Inc. 72
Slide 74: Viridity's Mission Statement
VIRIDITY’S MISSION STATEMENT * Provide comprehensive holistic solutions for demand response, energy management and energy storage through nimble and flexible business models, technology and product solutions ° We plan to develop, build, own and operate energy storage facilities and provide related s
Slide 75: Present in North American Markets
PRESENT IN NORTH AMERICAN MARKETS WHERE STORAGE AND DER SERVICES ARE MOST ACTIVE Two-thirds of the US economic activity in North American RTOs and ISOs! Source: FERC _ () RTOs - Regional Transmission Organizations , ISO- Independent System Operators Copyright © 2017 Ormat Technologies, Inc. 75.
Slide 76: Customers and Channels
CUSTOMERS AND CHANNELS 4,000+ C&I sites/licenses 8504 mw load : ConEdison BAS A CNGie ep} ENERGY Solutions RESUHRCHS ING QO OP ss ALCOA wor CDF <= Constellation e A IN oRNAvDo~ Schneider x bs eee G@ Electric CPOWER SEPTA Copyright © 2017 Ormat Technologies, Inc. 76
Slide 77: Viridity Business and Revenue Model
VIRIDITY BUSINESS AND REVENUE MODEL Viridity’s prime business and revenue model focuses on integrating battery storage and the unique intersection with monetizing demand Demand management and demand response Behind the meter BSAAS energy storage Sy stems In front of the meter energy storage Battery
Slide 78: BSAAS and DRAAS Systems
BSAAS AND DRAAS SYSTEMS ° Viridity is introducing Battery Storage and Demand Response as a Service (BSAAS and DRAAS systems) ° No capital outlay for customers with multiple year agreements Funding & EPC 7 © Ww Customer 22222222222 BSAAS /DRAAS 22222277277 Electric Grid ween eenenaee Systems Softwa r
Slide 79: Viridity Business and Revenue Model
VIRIDITY BUSINESS AND REVENUE MODEL Storage Strategy Channel Model (REP, CSP, Developer) * Storage consulting, EPC, financing, ; development, and operations * Leverage Partner contracts with end . . . use customers to enable DR and EM «Maximum economic benefit by implementing operating strategies *
Slide 80: Viridity and Ormat Creates a Unique Market Player
VIRIDITY AND ORMAT CREATES A UNIQUE MARKET PLAYER Full cycle storage project scope Interconnection Technical Origination Deal Makin System Sizin . 9 g y 9 Processes Design Ss Site Equipment we . Construction Installation Commissioning Testing Operations OO Copyright © 2017 Ormat Technologies, Inc.
Slide 81: Viridity Offerings
Slide 82: Viridity Provides Unique Offerings to the Market
Slide 83: Definitions: DM, DR, BS, BSAAS
* DM-Demand Management; DR-Demand Response; BS-Battery Storage; BSAAS- Battery Storage as a Service Systesms
Slide 84: US Competitive Landscape in Demand Response and Demand Management
Slide 85: US Competitive Landscape in Energy Storage
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Slide 89: Viridity Business and Revenue Model Evolution with BSAAS Systems
Slide 90: Introduction to ORIX Corporation at Ormat Technologies Investor Day
Introduction to ORIX Corporation at Ormat Technologies Investor Day September, 2017 90 ORIX Corporation Copyright © 2017 ORIX Corporation All rights reserved.
Slide 91: Today's Speaker
Today’s Speaker Todd Freeland  Chairman of the Board at Ormat Technologies  Co-Head of Energy and Eco Services Business HQ at ORIX  Former senior executive at Asian Development Bank, BMO Financial Group, and Goldman Sachs  US National, Kellogg MBA, UNC BA 91 ORIX Corporation Copyright © 2017 ORI
Slide 92: Presentation Agenda
Presentation Agenda 1. Overview of ORIX Group 2. Overview of ORIX Energy and Eco Services Business 3. Review of ORIX Investment in Ormat 92 ORIX Corporation Copyright © 2017 ORIX Corporation All rights reserved.
Slide 93: ORIX Overview
ORIX Overview  ORIX Corporation is an opportunistic, diversified, innovation-driven global firm with a proven track record of profitability  Founded in 1964  Over US$ 100 billion of Assets and US$ 20 billion market cap  Over 34,000 employees operating in 36 countries and regions worldwide  Glob
Slide 97: ORIX's Partnership Approach in Entering New Markets
ORIX’s Partnership Approach in Entering New Markets ORIX has a successful track record of entering new markets and localizing its operations via partnerships with strong local companies Infrastructure Leasing & Financial Services China Science of Academy (Wind Power& Infrastructure (Joint Investment
Slide 98: ORIX Energy and Eco Services
ORIX Energy and Eco Services  Globally diversified and growing IPP portfolio of over 5 GW (gross) / 2GW (net)1 of power generation assets and investments  Technologies: Solar, Wind, Geothermal, Hydro, Biomass  Geographies: Asia, Americas, Middle East, Africa2  Multiple operations and investments
Slide 99: Our Energy Value Chain Spans Supply and Demand
Our Energy Value Chain Spans Supply and Demand もう少しセンス良くビジュアルにポートフォリオがわかるように見せたい。太陽光以外はこのスライドで概要がわかるようにする。 Japan Japan Japan Solar Electric Power ESCO  One of the largest players in Japan Supply  Customized plan for  640MW in operation  Supply high-voltage energy saving via  350MW under const
Slide 100: Our Expanding Portfolio of IPP Activities
Our Expanding Portfolio of IPP Activities  In Japan, ORIX is on track to become the largest renewable energy generator  Outside Japan, we have made numerous strategic investments and built strong relationships with local partners ORIX Japan GS E&R (Sold 2017) Solar: 990MW Coal: 1,200MW Wind: 62MW
Slide 101: Recent EES Investment Track Record
Recent EES Investment Track Record Press No Trademark Country Investee Sector Description Share Released With over five decades of experience, Ormat, a leading Ormat Technologies, Geotherma 1 USA geothermal company, owns, operates, designs, manufactures 22.10% May, 2017 Inc. l and sells geothermal a
Slide 102: Asia Climate Partners
Asia Climate Partners ACP is a joint venture with Asian Development Bank for private equity investments in climate-related transactions in the developing markets of Asia Target Sectors Target Markets • Wind, Solar, Hydro & Geothermal Clean • Biomass, Sustainable Biofuels Energy • Waste to Energy • B
Slide 103: Robeco / RobecoSAM
Robeco / RobecoSAM  ORIX acquired Robeco Group, a leading European asset management platform, in 2013  Robeco’s affiliate RobecoSAM is a global pioneer and thought leader in Sustainability Investing  Founded in 1995 – 1st of its kind  Over $19 Bn of assets under management / advice / license  B
Slide 104: Overview of ORIX Investment in Ormat
Overview of ORIX Investment in Ormat  In July 2017, ORIX acquired ~11 mm shares of Ormat for US$ 627 million  Largest single investment to date by ORIX in the Energy and Eco market  22% ownership stake  3 ORIX representatives on Ormat board of directors  Investment creates strategic partnership
Slide 105: ORIX Rationale for Investing in Ormat
ORIX Rationale for Investing in Ormat  Represents key step in ORIX strategy to globalize our renewable energy portfolio  Expands our penetration of the highly attractive geothermal market Strategic Fit  Creates platform for future growth with industry leader  Dovetails with ORIX strategy of ente
Slide 106: ORIX Appointees to Ormat Board of Directors
ORIX Appointees to Ormat Board of Directors Name Position at ORIX Corporation  Co-Head of Energy and Eco Services Business HQ Todd Freeland  CEO of European Energy and Eco Operations Chairman of Ormat Board  Member of the ORIX Board of Directors Stan Koyanagi  Global General Counsel  Responsibl
Slide 107: Disclaimer
Disclaimer These materials have been prepared by ORIX Corporation (“ORIX” or the “Company”) solely for your information and are subject to change without notice. The information contained in these materials has not been independently verified and its accuracy is not guaranteed. No representations, w
Slide 109: Financial Strategies
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Slide 112: Financial Achievements 2014-2017
Slide 113: Key Financial Aspects
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Slide 119: Improving Profitability: Increase in Gross Margin
Slide 120: Improving Profitability: Increase in Adjusted EBITDA
Slide 121: Financial Targets 2018-2022
Slide 122: Main Focus
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Slide 134: Committed to Continued Profitable Growth
Slide 135: Summary - Continuing Execution
Slide 136: Ormat Performance Evolvement
Slide 137: Thank You!
Slide 138: Reconciliation of EBITDA and Adjusted EBITDA
Slide 139: Reconciliation of EBITDA and Adjusted EBITDA
Slide 140: Reconciliation of EBITDA and Adjusted EBITDA

Ormat Technologies — Investor Day (September 2017) on 6ix

Ormat Technologies — Investor Day (September 2017)

Slide 1: Welcome to Ormat 2017 Analyst and Investor Day

Slide 2: Agenda

Slide 3: Ormat Speakers Biographies

Slide 4: Speakers Biographies

Slide 5: Safe Harbor Statement

Slide 6: Safe Harbor Statement

Slide 7: Slide 7

Slide 8: Introduction to Ormat

Slide 9: Ormat's Key Strategy Pillars

Slide 10: Key Strategic Achievements 2014-2017

Slide 11: Evolving to Thrive in Tomorrow's Energy Market

Slide 12: Energy Market Is Transforming

Slide 13: How We Are Evolving

Slide 14: Improving Efficiencies to Achieve Profitable Growth

Slide 15: How We Are Evolving

Slide 16: Targeting Customers Who Acknowledge Geothermal Value

Slide 17: How We Are Evolving

Slide 18: Diversifying Customer Base

Slide 19: How We Are Evolving

Slide 20: Identify and Meet Customers' New Needs

Slide 21: Providing Integrated Distributed Energy Resources (DER) Services

Slide 22: Creating a Platform for Continued Profitable Growth

Slide 23: Market Opportunity and Strategy in Action

Slide 24: Safe Harbor Statement

Slide 25: Growth Strategies in Action

Slide 26: Core Market Expansion

Slide 27: Global Trends & Demand Drivers

Slide 28: US Trends & Demand Drivers

Slide 29: Trends in the US Geothermal Market

Slide 30: Trends in the US Geothermal Market

Slide 31: Trends in the US Geothermal Market

Slide 32: Trends in the US Geothermal Market

Slide 33: Trends in the US Geothermal Market

Slide 34: Trends in the US Geothermal Market

Slide 35: Trends in the US Geothermal Market

Slide 36: Customers' View on Geothermal Value

Slide 37: Strategy in Action - Changing the Marketplace

Slide 38: SCPPA Portfolio PPA

Slide 39: US Development to Support Future Growth

Slide 40: Portfolio Shifting Towards POUs, C&I, CCA

Slide 41: Core Market Expansion

Slide 42: Trends in the International Market

Slide 43: Electricity Segment Development Targets

Slide 44: Africa

Slide 45: Asia Pacific

Slide 46: Latin America and Caribbean

Slide 47: Strategy in Action - Electricity Segment

Slide 48: Core Market Expansion

Slide 49: Product Segment Targeted Geographies

Slide 50: Turkey as an Example: Main Ingredients for Geothermal Growth

Slide 51: Ormat Is the Main Contributor to Turkey Geothermal Market Growth

Slide 52: Strategy in Action

Slide 53: New Market Expansion

Slide 54: Growing by Leveraging Our Core Capabilities

Slide 55: Ormat Competitive Advantages

Slide 56: Ormat Competitive Advantages

Slide 57: Energy Storage Targeted Regions

Slide 58: Growth Strategies - Summary

Slide 59: Summary

Slide 60: Viridity Energy Solutions, an Ormat Company

Slide 61: Safe Harbor Statement

Slide 62: Introduction

Slide 63: Energy Storage Market Outlook

Slide 64: The Energy Market Is Transforming

Slide 65: US Battery Storage Explosion Has Started

Slide 66: Battery Storage Market Outlook

Slide 67: Battery Storage Market Outlook

Slide 68: US Battery Storage Explosion: Utility Deployment

Slide 69: US Battery Storage Explosion: C&I Deployment

Slide 70: Battery Storage Growth Driven by Price Declines

Slide 71: Policy and Regulations Developments

Slide 72: Energy Storage 2017 - Boom!

Slide 73: Introduction to Viridity Energy Solutions, Inc.

Slide 74: Viridity's Mission Statement

Slide 75: Present in North American Markets

Slide 76: Customers and Channels

Slide 77: Viridity Business and Revenue Model

Slide 78: BSAAS and DRAAS Systems

Slide 79: Viridity Business and Revenue Model