ORMAT TECHNOLOGIES INC. INVESTOR PRESENTATION · This presentation, and information provided during any discussion accompanying this presentation, ... (1 MW / 0.5 MWh) • System

Copyright © 2020 Ormat Technologies, Inc. Copyright © 2020 Ormat Technologies, Inc.

ORMAT TECHNOLOGIES INC. INVESTORPRESENTATIONMARCH 2020

Copyright © 2020 Ormat Technologies, Inc.

SAFE HARBOR STATEMENT

2

Forward-Looking Statements

This presentation, and information provided during any discussion accompanyingthis presentation, may contain “forward-looking statements” within the meaning ofthe Private Securities Litigation Reform Act of 1995. These statements involveestimates, expectations, projections, goals, objectives, assumptions and risks, andactivities, events and developments that may or will occur in the future. When usedin or during the course of this presentation, the words “may”, “will”, “could”,“should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”,“projects”, “thinks”, “forecasts”, “guidance”, “continue”, “goal”, “outlook”,“potential,” “prospect” or “target”, or the negative of these terms or othercomparable terminology are intended to identify forward-looking statements,although not all forward-looking statements contain such words or expressions.Such forward-looking statements include, but are not limited to:

statements about Ormat Technologies, Inc.’s and its affiliates’ (“Ormat”) businessstrategy;

statements about Ormat’s competitive strengths;

statements about Ormat’s development and operation of electricity generation,storage and energy management assets, including distributed energy resources;

statements about Ormat’s other plans, expectations, objectives and targets;

statements about Ormat’s views on market and industry developments andeconomic conditions, and the growth of the markets in which Ormat conducts itsbusiness; and

statements about the growth and diversification of Ormat’s customer base andOrmat’s future revenues, expenses, earnings, capital expenditures, regional marketpenetration, electricity generation, and other operational performance metrics,including statements about “target” or “targeted”

amounts for 2022 growth (MW) or 2022 operational performance metrics such asgrowth (MW), revenue by segment, segment breakdown and domestic/internationalgeographic breakdown, among others. All of these and other forward-lookingstatements made in or during the course of this presentation are made only as of thedate hereof and Ormat undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments orotherwise, except as required by law. Forward-looking statements about “target” or“targeted” amounts represent current goals of Ormat’s management and are neitherestimates of Ormat’s actual results nor financial projections or forecasts that have beenprepared in accordance with Securities and Exchange Commission (“SEC”) rules orguidelines adopted by the American Institute of Certified Public Accountants. Theseforward-looking statements are not intended to be a guarantee of future results, butinstead constitute Ormat’s current expectations based on assumptions that Ormatcurrently believes are reasonable. You are cautioned not to place undue reliance onthe expectations, projections and other forward-looking statements made in or duringthe course of this presentation as actual future results and developments may differmaterially from such expectations, projections and forward-looking statements due toa number of risks, uncertainties and other factors, many of which are beyond Ormat’scontrol.

These risks, uncertainties and other factors include, but are not limited to, the risks,uncertainties and other factors described in Ormat Technologies, Inc.'s Form 10-K filedwith the SEC on March 02, 2020 and from time to time, in Ormat’s quarterly reports onForm 10-K that are filed with the SEC.

This presentation includes Forward-Looking Statements and the disclaimer should be read carefully


NON-GAAP METRICS

3

Reconciliation to US GAAP Financial Information

This presentation includes certain “non-GAAP financial measures” within themeaning of Regulation G under the Securities Exchange Act of 1934, as amended,including EBITDA and Adjusted EBITDA. The presentation of these non-GAAPfinancial measures is not intended as a substitute for financial information preparedand presented in accordance with GAAP and such non-GAAP financial measuresshould not be considered as a measure of liquidity or as an alternative to cash flowfrom operating activities, net income or any other measures of performanceprepared and presented in accordance with GAAP. Such non-GAAP financialmeasures may be different from non-GAAP financial measures used by othercompanies.

The appendix slides in this presentation reconcile the non-GAAP financial measuresincluded in the presentation to the most directly comparable financial measuresprepared and presented in accordance with U.S. GAAP .

Copyright © 2020 Ormat Technologies, Inc. All Rights Reserved. This documentcontains information proprietary to Ormat Technologies, Inc. Reproduction in anyform without prior written permission is strictly prohibited.


Our mission is to become a leading global renewable energy provider

Market leader with proven track record in the geothermal energy sector

INTRODUCTION TO ORMAT

4

384$MFY2019 adj. EBITDA(1)

~1,410Employees

Own & operate

914 MWGenerating Capacity

55 yearsof experience

746$MFY2019 revenues

(1) See appendix for reconciliation of non-GAAP financial measures .

43MW/46MWhof operating storage projects


SUMMARY – CONTINUING EXECUTION

5

Electricity segment gross margin increased to:

42%Adjusted EBITDA(4) margin

52%

Strategic M&A

New activities

Organic growth

Improveefficiencies

Secured over

242$M

capital to support growth plan(1)

Energy Storage pipeline

150-200MW

expected by 2022(2)

Geothermal & Solar Growth

180-200MW

expected by 2022(3)

(1) Numbers refer to the period since the beginning of 2019(2) MW growth target is based on existing prospects and business development plans as February 25, 2020(3) MW growth targets in the energy storage depends on our ability to secure site control and interconnection agreement and is based on our estimates and

business development plans as of February 25, 2020 (4) See appendix for reconciliation of non-GAAP financial measures


THE WORLD’S ONLY VERTICALLY INTEGRATED GEOTHERMAL COMPANY

6

Development & exploration

Drilling Engineering Manufacturing Construction Operation

Electricity segment

70% of total revenues(1)

Customers: Utilities, CCA

andMunicipalities

(1) Average 2017-2019


THE WORLD’S ONLY VERTICALLY INTEGRATED GEOTHERMAL COMPANY

7


Product segment

Development & exploration

Drilling Engineering Manufacturing Construction Operation Customers:Utilities andDevelopers

(1) Average 2017-2019


VERTICAL INTEGRATION AS A PLATFORM TO GROW IN THE STORAGE MARKET

8

Development Engineering Construction OperationProcurement

Inverter and battery

Development Pipeline

Energy Storage & Management Services segment

(1) Average 2017-2019



$376$436 $466

$510 $540

2015 2016 2017 2018 2019

ELECTRICITY SEGMENT OVERVIEW

9

• Global operation of 914 MW at 25 sites

• 93% geothermal, 6% REG and 1% solar

• Weighted average PPA life: 17 years(1)

Annual revenue ($M)

Kenya150 MW

Stable, well managed, cash generating assets

Indonesia 42 MW

Guadeloupe15 MW

Guatemala40 MW

U.S.629 MW

Global portfolio (914 MW)

Honduras38 MW

(1) Including re-contracting under the SCPPA Portfolio PPA.(2) 2017 FY revenue is exclusive of $2.7M revenues related to our Viridity business from the provision of energy storage and demand response services.(3) Ormat owns a 12.75% minority interest at Sarulla, which is accounted for under the equity method.(4) Electricity segment revenues were impacted by the shutdown of Puna during 2018 and 2019.

(4)

(3)

(2)

(4)


PRODUCT SEGMENT OVERVIEW

10

Built approximately 190 power plants and installed over 3,000 MW of geothermal & REG over the years

$219 $226 $225$202 $191

2015 2016 2017 2018 2019

(1) The backlog includes revenues for the period between January 1, 2020 and February 25, 2020, compared to $216.8 million as of February 26, 2019, which included revenues for the period between January 1, 2019 and February 26, 2019

$212M - 5 yr. Average

Revenue from 3rd party sales ($M) Backlog breakdown(1)

45%

24%

2%2%

24%

2%1%

Turkey NZ US Bolivia Chile Taiwan Others

• Backlog of approximately $142 million as of February 25, 2020

• Continuing improving engineering, technology and delivery lead-time


ENERGY STORAGE AND MANAGEMENT SERVICES OVERVIEW

11

Holistic offering that combines energy storage and energy management

• 50 highly experienced staff

• Operating Portfolio

• 43MW/46MWh operating assets

• Plumsted and Stryker – connected to PJM Interconnect

• Hinesburg – connected to ISONE

• ACUA – connected to PJM Interconnect

• Multiple application, both in-front-of-the-meter as well as behind-the-meter

• Combination of contracted and merchant revenues

• Financing energy storage projects• $23.5M non-recourse financing for Plumsted and Stryker


GROWTH PLAN – GEOTHERMAL AND SOLAR

12

• Added 7 MW from Tungsten Solar in Nevada during 2019

• Expect adding between 180 MW and 200 MW by the end of 2022(1)

• Continue to look for M&A opportunities

Project ExpectedCapacity (MW) Expected COD PPA

Geothermal Projects

U.S - Steamboat Hills Enhancement 19 2020 H1

U.S - Heber Complex 11 Early 2021

U.S - CD4 30 End 2021

U.S - North Valley 15-20 2021

U.S - McGinness Hills Expansion 8 2021

U.S. – Puna expansion 8 2022

U.S – Dixie Meadows(2) 15 2022 TBD

France (Guadeloupe Island) - Bouillante (2) 10 2022 TBD

Kenya – Olkaria III expansion 10 2022

Solar Projects

U.S - Wister Solar 20 AC 2021

U.S. Steamboat Solar 5 AC 2022

(1) MW growth target is based on existing prospects and business development plans as of February 25, 2020 (2) Projected COD is subject to PPA execution


PTC EXTENDER – DRIVER FOR GROWTH IN THE UNITED STATES

13

• In December 2019, the tax extenders package was signed into law and retroactively revived, extending the full PTC for geothermal facilities

• Continues U.S. support for the geothermal industry.

• PTC provides a tax credit of 2.5 cents per kWh of energy produced by the taxpayer from qualified geothermal energy projects

• Start construction by December 31, 2020

• Placed in service within four years after the end of the year in which construction started

• Extension of the PTC provides Ormat with

• Improving project economics and feasibility

• Enabling us to build new projects before signing a PPA and sell their electricity output in the “merchant” market until an acceptable long term PPA is obtained and signed

• Extension will maximize benefits from the PTC

• Increase our growth pace in the United States while maintaining our hurdle IRRs


GROWTH PLAN - ENERGY STORAGE AND MANAGEMENT SERVICES

14

Holistic offering that combines energy storage, demand response and energy management

Projects released for construction

• Rabbit Hills, Texas (10 MW / 12.5 MWh)

• Finalizing market testing to get ERCOT’s approval to provide

ancillary services; started generating revenue from energy

optimization

• Valecito, California (10 MW / 40 MWh)

• Signed EPC Agreement and provided a final notice to proceed

• Expect the major permit in March and groundbreaking in May 2020

• Israel Electric Corporation (IEC) Caesarea (1 MW / 0.5 MWh)

• System supplied to IEC in Q4 2019

Development pipeline(1)

• Expecting 150MW-200MW to be commissioned between 2020 and 2022

Rabbit Hill project Texas, U.S.

(1) MW growth targets in the energy storage depends on our ability to secure site control and interconnection agreement and is based on our estimates and business development plans as of February 25, 2020


FUNDING GROWTH – SECURED $242 MILLION OF CAPITAL

15

Successfully raised $242 million since the beginning of 2019

• $59.3M tax partnership transaction of McGinness Hills phase 3

• $50.0M of commercial paper

• Three months LIBOR + 0.75%, issued for 90 days and extends automatically for additional periods of 90 days for up to 5 years

• $18M with Société Géneralé and Banque Publique d’Investissement for our Bouillante power plant in Guadeloupe

• $9.0 million at a fixed interest rate of 1.93% (in EUR ), maturity – March and April 2026

• $9.0 million at a fixed interest rate of 1.52% (in EUR ), maturity – March and April 2026

• $23M with U.S. financial institution for Plumsted and Stryker, our battery storage projects

• Interest rate of LIBOR plus 3.5%, maturity - May 2026

• Additional $50M under the senior unsecured notes from Migdal (institutional investor)

• Fixed interest rate of 4.6%, maturity - March 2029

• $42M unsecured notes with DEG for the Olkaria III recent enhancement

• Fixed interest rate of 6.04%, maturity - June 2028


STRONG EXECUTION - REVENUE ($M)

16

219

436 466 510 540

376

226224

202191

3 7 15

2015 2016 2017 2018 2019

Electricity Products Energy Storage and management services

$719$693$663

$595

$746


Electricity

Products

Energy Storage and management services

STRONG EXECUTION - ADJUSTED EBITDA(1) ($M)

17

$291$324

$344$368

$384

2015 2016 2017 2018 2019

By Segments

88%

13%

FY 2019

FY 2018

(1) See appendix for Adjusted EBITDA reconciliation.

-1%

9%0%

91%

FY 2018


WELL POSITIONED TO SUPPORT GROWTH

18

640 666 609 759 716

280 273 305

509 522

2015 2016 2017 2018 2019Project Finance Corporate Debt

Net Debt ($M)(1)

39% 37% 39%43% 42%

2015 2016 2017 2018 2019

Total Debt ($M)

$685 $674$817

$1,090 $1,085

2015 2016 2017 2018 2019

Net Debt(1) to Capitalization (Total Equity)

$920 $939

2.4x2.1x

2.4x

3.0x 2.8x

2015 2016 2017 2018 2019

Net Debt to Adjusted EBITDA(1)

$914

$1,268

(1) See appendix for reconciliation of non-GAAP financial measures.

$1,238


INVESTMENT HIGHLIGHTS

19

• Substantial and growing

cash flow from operation

• Growth from identified

geothermal projects

• Growth potential from

storage

• Global regulatory support

Well positioned

• Market leader

• Strong cash flow

• Strong balance sheet

• Access to various

sources of capital

• Focus on increasing

efficiencies

• vertical integration

• In-house technological

and engineering

capabilities

• Improving margins

Efficient operationSustainable growth ESG Investment

• Pure play in the

renewable sustainable

field

• Committed to ESG

principals

Copyright © 2020 Ormat Technologies, Inc. Copyright © 2020 Ormat Technologies, Inc.

THANK YOU!

20

Contact IR:

Smadar Lavi

VP Corporate Finance and Head of Investor Relations

775-356-9029 (ext. 65726)

[email protected]


UPDATE ON PUNA PLANT IN HAWAII

21

• Working rapidly to resume operation of our Puna power plant following the volcanic eruption• Commercial operation of the full generating capacity is expected in the third quarter2020

• Assuming all other permits are received, transmission line upgrade is complete and field recovery is

successfully achieved

Signed an amended and restated PPA with HELCO, subject to PUC approval

• Extends the current term until 2052

• Increases the current contract capacity by 8 MW to 46MW

• Fixed the energy rate to delinked to oil prices

• Current PPA remains in effect until commercial operation on the new 46MW power plant

• Terminated the lease transaction involving the Puna power plant

• Paid $20.5 million (including future lease payments)

• Provided the company the ability to satisfy its obligations under the new PPA


AIR-COOLED BINARY GEOTHERMAL POWER PLANT

22


1250 MW 44%

1124 MW40%

444 MW16%

STG Binary - Ormat Binary - Others

WORLDWIDE GEOTHERMAL INSTALLED CAPACITY 2015-2019

23

2,817 MW TOTAL

5316

44

180

041 28

555

245

15

342

20 4 162

614

54

158136

12

220

55

-

100

200

300

400

500

600

700

MW

Binary - Ormat Binary - Others STG Total

Source: Ormat


MARKET OPPORTUNITIES FOR GEOTHERMAL GROWTH

24Source: Study based on “Think GeoEnergy” report: “Geothermal Market Analysis YE 2019” by Alexander Richter from February 2020 represent gross MW.

Areas with installed geothermal capacity Installed Potential

Ring of Fire

Full Geothermal potential is more than 10x the installed capacity

Europe3.4 GW

LATAM1.7 GW

Africa0.8 GW

LATAM36.4 GW

Africa5.1 GW

Europe7.2 GW

U.S35 GWAsia pacific

74.3 GW

Oceania3.6 GW

U.S3.6 GWAsia pacific

4.7 GW

Oceania1.0 GW


0

5

10

15

20

25

30

35

40

45

0

200

400

600

800

1,000

1,200

1,400

EDC(PNOC)

Ormat/worldwide

CFE ENEL Star EnergyConsortium

Calpine Aboitiz ContactEnergy

Mercury Terra-Gen(ECP)

Operation (MW) Estimated Project Count

MARKET SHARE - ELECTRICITY SEGMENT

25

Top 10 Geothermal owners & operators1 (MW)MW

(1) Source: Study based on Think GeoEnergy - “Geothermal Market Analysis YE 2019” by Alexander Richter from February 2020. Ormat’s data is presented at gross installed capacity.


MARKET SHARE - PRODUCTS SEGMENT

26

Major geothermal equipment suppliers (MW & project count)1

0

20

40

60

80

100

120

140

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Toshiba Mitsubishi Fuji Ormat Ansaldo/Tosi GE Alstom Exergy

MW Operating Estimated Project Count

2

(1) Source: Study based on Think GeoEnergy - “Geothermal Market Analysis YE 2019” by Alexander Richter from February 2020. Ormat’s data is presented at gross installed capacity.


RECONCILIATION OF EBITDA AND ADJUSTED EBITDA FOR THE THREE AND TWELVE-MONTHS PERIODS ENDED DECEMBER 31, 2019 AND 2018 (UNAUDITED)

27

We calculate EBITDA as net income before interest, taxes, depreciation and amortization. We calculate Adjusted EBITDA as net income before interest, taxes, depreciation and amortization,adjusted for (i) termination fees, (ii) impairment of long-lived assets, (iii) write-off of unsuccessful exploration activities, (iv) any mark-to-market gains or losses from accounting for derivatives, (v)merger and acquisition transaction costs, (vi) stock-based compensation, (vii) gain or loss from extinguishment of liabilities, (viii) gain or loss on sale of subsidiary and property, plant andequipment and (ix) other unusual or non-recurring items. EBITDA and Adjusted EBITDA are not measurements of financial performance or liquidity under accounting principles generally acceptedin the United States, or U.S. GAAP, and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net earnings as indicators ofour operating performance or any other measures of performance derived in accordance with U.S. GAAP. We use EBITDA and Adjusted EBITDA as a performance metric because it is a metricused by our Board of Directors and senior management in evaluating our financial performance. However, other companies in our industry may calculate EBITDA and Adjusted EBITDA differentlythan we do.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the three and twelve-months periods ended December 31, 2019 and 2018.

Net income ............................................................................................................................................................................. $ 14,127 $ 23,089 $ 93,543 $ 110,111 Adjusted for:Interest expense, net (including amortization of deferred financing costs) 17,248 21,576 78,869 69,950 Income tax (benefit) provision ....................................................................................................................................... 25,477 31,386 45,613 34,733 Adjustment to investment in unconsolidated company: our proportionate share in interest, tax and depreciation and amortization ................................................ 5,205 (2,584) 13,089 9,184 Depreciation and amortization........................................................................................................................................ 36,260 32,749 143,242 127,732 EBITDA...................................................................................................................................................................................... $ 98,317 $ 106,216 $ 374,356 $ 351,710

Mark-to-market gains or losses from accounting for derivatives 507 830 (1,402) 2,032 Stock-based compensation 2,127 2,836 9,358 10,218 Insurance proceeds in excess of assets carrying value — — — (7,150) Loss from extinguishment of liability 468 — 468 — Impairment of goodwill, net of reversal of a contingent liability — 3,142 — 3,142 Termination fee — — — 4,973 Merger and acquisition transaction cost 733 120 1,483 2,910 Write-off of unsuccessful exploration activities — 7 — 126 Adjusted EBITDA.................................................................................................................................................................. $ 102,152 $ 113,151 $ 384,263 $ 367,961

Puna's related EBITDA........................................................................................................................................................ 2,591 (9,587) 1,280 (13,254)

Adjusted EBITDA excluding Puna's impact................................................................................................................. 104,743 103,564 385,543 354,707

(in thousands) (in thousands)

Three Months Ended December 31 Twelve Months Ended December 31 2019 2018 2019 2018


RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (CONT’D)

28

The following table reconciles net income to EBITDA and Adjusted EBITDA for the twelve-month periods ended December 31, 2017, 2016, 2015 and 2014.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

29

2019 2018 2017 2016 2015Cash and cash equivalents and Restricted cash (in millions $)Cash and cash equivalents 71 99 48 230 186Restricted cash and cash equivalents 82 79 49 34 50

153 178 97 264 235Total Debt (in millions $)Current portion of long-term debt:

Short term revolving credit lines with banks (full recourse) 41 159 52 0 0Commercial paper 50 0 0 0 0

Limited and non-recourse Senior secured notes 24 33 33 32 30Other loans 34 30 21 21 21

Full recourse 77 5 3 12 11Total current portion of long-term debt: 226 227 109 66 63

Long-term debt, net of current portion:Limited and non-recourse

Senior secured notes (less deferred financing costs of $8,113 and $9,177, respectively) 339 375 312 350 305Other loans (less deferred financing costs of $5,258 and $6,409, respectively) 317 320 242 262 283

Full recourse:Senior unsecured bonds (less deferred financing costs of $580 and $755, respectively) 286 304 204 204 250Other loans (less deferred financing costs of $1,011 and $1,346, respectively) 69 42 46 57 19

Total long-term debt, net of current portion: 1,012 1,041 804 873 858Total Debt 1,238 1,268 914 939 920

Total Debt Breakdown (in millions $):Full recourse: 522 509 305 273 280Limited and non-recourse 716 759 609 666 640Total Debt 1,238 1,268 914 939 920

Net Debt (in millions) 1,085 1,090 817 674 685

Total Equity 1,515 1,445 1,296 1,168 1,087Net Debt to Capitalization (Total Equity) (%) 42% 43% 39% 37% 39%

Net Debt to Adjusted EBITDA 2019 2018 2017 2016 2015

Net Debt (in millions) 1,085 1,090 817 674 685Adjusted EBITDA (in millions) 384 368 344 324 291Net Debt to Adjusted EBITDA (x) 2.8 3.0 2.4 2.1 2.4

Year Ended December 31

Year Ended December 31

Documents

ORMAT TECHNOLOGIES INC. INVESTOR PRESENTATION · This presentation, and information provided during any discussion accompanying this presentation, ... (1 MW / 0.5 MWh) • System