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Green energy you can rely on

Amatitlan, Guatemala

Copyright © 2013 Ormat Technologies, Inc.

Ormat Technologies, Inc. November 2013

F66OTEC Q3 2013 11 14 13


Disclaimer

Information provided during this presentation may contain statements relating to current expectations, estimates, forecasts

and projections about future events that are forward-looking statements as defined in the Private Securities Litigation Reform

Act of 1995.

These forward-looking statements generally relate to the company’s plans, objectives and expectations for future operations,

and are based on management’s current estimates and projections of future results or trends. Actual future results may differ

materially from those projected as a result of certain risks and uncertainties.

For a discussion of such risks and uncertainties, please see risk factors as described in the Annual Report on Form 10-K filed

with the securities and exchange commission on March 11,2013.

In addition, during this presentation, statements may be made that include a financial measure defined as non-GAAP financial

measures by the Securities and Exchange Commission, such as EBITDA and adjusted EBITDA. These measures may be

different from non-GAAP financial measures used by other companies. The presentation of this financial information is not

intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance

with GAAP.

Management of Ormat Technologies believes that EBITDA and adjusted EBITDA may provide meaningful supplemental

information regarding liquidity measurement that both management and investors benefit from referring to this non-GAAP

financial measures in assessing Ormat Technologies’ liquidity, and when planning and forecasting future periods. This non-

GAAP financial measures may also facilitate management’s internal comparison to the company’s historical liquidity.

Copyright © 2013 Ormat Technologies, Inc. All Rights Reserved. This document contains information proprietary to Ormat

Technologies, Inc. Reproduction in any form without prior written permission is strictly prohibited

1


Introduction to Ormat

Market leader with proven track record:

• Over four decades of experience

• Established renewable pure-play

• Technology leader with over 82 U.S. patents

• 595 MW of installed capacity in 17 complexes and power plants

• Power plants fully contracted with base load generation, yielding strong

cash flow

• Vertically integrated

• Strong backlog in the Products segment

• Over 500 employees in the United States and about 600 overseas

2 Share data: Yahoo finance as of Nov. 11 , 2013


Business Overview

Power Generation

• Approx. 70% of Revenue1

• In operation: 595 MW (net)

• Expected by the end of 2014: 637 MW (net)

Products

• Approx. 30% of Revenue1

• Backlog2 of $173 million

• Supplied over 1,750 MW to 24 countries

3

1 Five years average 2 The backlog is as of Nov. 5 2013.

Olkaria III, Kenya Ngatamariki , New Zealand


$239 $242 $280

$312 $314 $330

2008 2009 2010 2011 2012 2013E

Power Generation

2nd Largest Geothermal Owner in the U.S

• Owns and operates 595 MW of generating capacity in 17 complexes

and power plants worldwide

• Diversified portfolio

• Weighted average of remaining contractual life approx. 14 yrs.

• High availability

4

Kenya 92 MW

United States 461MW

Guatemala 42 MW

Annual Revenue1 ($million)

1 The Momotombo revenues are excluded from the total revenues due to the sale of the plant in Nicaragua in June 2013


43 38

44 41

37 38 32 31

2008 2009 2010 2011 2012

Power Generation - Continuous Improvement

5

2,712 3,110

3,560 3,682 3,943

2008 2009 2010 2011 2012

Excluding North Brawley

Annual Generation1 (GWh) All Inclusive OpEx2 ($/MWh)

1 The Momotombo operations are excluded from the generation and from all Inclusive OpEx due to the sale of the plant in Nicaragua in June 2013.

2 All Inclusive OpEx includes fixed O&M, variable O&M, field O&M, royalties, and related G&A.

3 2012 figure excludes a non- recurring item in the amount of $ 3.3 million.

3


Market share is based on EER Global Geothermal Markets and Strategies report (2009);

Products - Technology Leader

• Most successful track record of all non steam solutions

• Technology leader for today’s resource needs

• Over 25 years of experience in developing unique engineering

solutions for a wide range of geothermal resource conditions

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Geothermal Power plants

Recovered Energy Generation (REG)

Remote Power Units


1 Backlog is as of November 5, 2013

Products - Technology Leader

• Strong backlog1 of $173 million

• Signed $254 million supply contract for the 330 MW Sarulla

project in Indonesia • Expect to complete financing and begin construction next year

7

$93

$159

$81

$113

$187 $195-$205

2008 2009 2010 2011 2012 2013E

Annual Revenue ($million)

Copyright © 2013 ORMAT. All rights reserved. This document contains information proprietary to ORMAT. Reproduction in any form without prior written permission is strictly prohibited.

8

Areas with Potential Geothermal Resources

Installed Capacity 2012

Hydrothermal Geothermal Resources Potential (139,555 MW)

Source: Hydrothermal Geothermal Resources Potential, EMERGING ENERGY RESEARCH, LLC. Global “Geothermal Markets and Strategies: 2009–2020”, May 2009. "Geothermal Power Generation in the World 2005–

2010 Update Report" Ruggero Bertani Enel Green Power, via Dalmazia 15 – 00198 Roma (Italy) April 2010. Geothermal: International Market Overview Report, GEA May 2012.

Worldwide installed capacity - approx. 11,200 MW

3,729

36,330

209

5,850

1,074

6,982 620

6,000

Global Geothermal Potential (MW)

3,201

46,903

1,516

31,980

865

5,510


Supportive Legislation - U.S.

Creates Demand • Renewable Portfolio Standard (RPS)

• Adopted by 40 States1 as mandatory law or

as a goal

• June 2013 - Nevada passed a series of

new laws expected to continue to support

renewable energy development

Supports Economics2

• Tax incentives; choose between: • Production Tax Credit (PTC)

• 30% Investment Tax Credit (ITC)

• 30% ITC cash grant

• Accelerated depreciation

9

1Source: www.pewclimate.org ,www.cpuc.ca.gov , www.dsireusa.org 2Projects that are under construction by December 2013 will qualify for 10 years of production tax credits on the electricity output or an investment tax credit (ITC) upon project completion

for 30% of the project cost. The ITC grant is applicable to projects that will commence operation by the end of 2013, the 30% is before sequestration

RPS -State Requirements & Compliance

2011

20%

2015

23% 27%

2017

33%

2020 2013

20%

California

2012 compliance - 20%

2011 2013 2015 2020 2025

15% 20% 18%

22% 25%

25%

40%

15%

11%

2011 2015 2020 2030

Nevada


Hawaii


http://www.pewclimate.org/


Initiatives to Support Renewables in the Global Market

• Power Africa initiative - double the access to power over the

next five years

• The U.S. will invest up to $7 billion in seven sub-Saharan

states of which, Kenya, Ethiopia and Tanzania have a

potential for geothermal energy

• Asia-Pacific comprehensive partnership for sustainable

energy

• The U.S. has allocated up to $6 billion for green energy

development

10


Growth in the Electricity Segment

• Started operation of 51 MW from Tuscarora and McGinness Hills

• May - commercial operation of the 36 MW Olkaria III plant 2

• June - McGinness Hills and Olkaria III capacity increased by 6 MW

• Expected by year-end- additional 26 MW from Heber Solar and Don Campbell projects

• 16 MW from Olkaria III Plant 3

• Generating capacity is expected to reach 637 MW

11

302

575 621 637

2004 2012 2013E 2014E

10-Year Growth (MW)

2012

2013

Future

projects

2014E

• Projects under various stages of development

• Strong land position


# Project Location

Projected

Generating

Capacity (MW)

Projected

Completion

Power

Purchase

Agreement

May Qualify

for ITC Cash

Grant

1 Heber Solar California 10

(24,500 MWh /year) By YE-2013(1)

2 Don A. Campbell

(formerly Wild Rose) Nevada 16 By YE-2013

3 Olkaria III - plant 3 Kenya 16 H1 2014 NA

Total 42 MW

Projects under Construction

12

Fully Released for Construction

# Project Location Projected Generating

Capacity (MW)

Projected

Completion

Power

Purchase

Agreement

May Qualify

for PTC

1 Carson Lake Nevada 20 TBD -

2 CD4 (Mammoth

Complex) California 30 TBD -

Total 50 MW

Initial Stage of Construction

(1) Subject to timely completion of the interconnection


Future Projects

13

# Project Location Projected

Generating Capacity (MW) Power Purchase Agreement

1 Crump Geyser (1) Oregon 10 -

2 Platanares(2) Honduras 35

3 Sarulla(3) Indonesia 42

4 McGinness Hills - Phase 2(4) Nevada 30

5 Wister(5) California 30

Total 147 MW

(1) Ormat has signed a 50:50 Joint Venture with Alternative Earth Resources Inc. (formerly Nevada Geothermal Power) to develop a binary geothermal power plant, approx., 20 MW, at Crump Geyser in Oregon.

(2) Development is subject to fulfillment of certain conditions.

(3) Ormat owns 12.75% interest in the Sarulla consortium that plan to develop the 330 MW net project to be constructed in three phases.

(4) The McGinness Hills Phase 2 is covered under the existing financing structure of the Department of Energy’s loan guarantee program under section 1705 and may qualify for PTC.The PPA is subject to PUCN

approval

(5) Considering termination of the PPA with the offtaker.

Projects under Various Stages of Development

Additional Developments

• Awarded tender for Geothermal Power Plant by GDC in Kenya

• Entered into a Joint Development Agreement with eBay Inc. for the development of a 5 MW REG power plant to be

constructed in Utah


7

19

7 6

• Ormat's growth beyond 2013 will depend on the success in its exploration efforts

• Strong land position to support future growth

NZ, 1

Indonesia, 1

Future Projects -Exploration Prospects

Status of 39 Prospects Prospects: U.S. - 29; Global - 10

14

Exploration

drilling

Expected to

start

exploratory

drilling

Exploration

studies

Lease

acquired

Chile,6

Guatemala, 2

U.S., 29

NV, 11

UT, 2

AK, 1

HI, 3

NM, 1

OR, 9

CA, 2


• PPA

• Plant design

• Completion field development & equipment manufacturing

• Plant permits

• Gathering system and plant construction

• Testing and start up

• Acceptance test

• Commercial operation

• Site Identification

• Lease agreement

• Permitting

• Exploration

• Initial field development & well testing

Geothermal Green Field Development Process

15


Financial Highlights

• Financial and technical capability to expand asset base

• Solid revenue stream

• Solid liquidity position

• Profitable operations

• Year over year growth

16


(in millions of USD)

Financials - Total Revenue1

17

239 242 280

312 314 330

93

159 81

113

187

195- 205

2008 2009 2010 2011 2012 2013E

Electricity Product

$332

$401 $361

$425

$525-$535

$501

239 245

150 157

9M 2012 9M 2013

$389

1 The Momotombo revenues are excluded from the total revenues due to the sale of the plant in Nicaragua in June 2013

$402


1In millions of USD; For reconciliation of Adjusted EBITDA see the Appendix 2 2011 Net loss included $61.5 million non-cash-related valuation allowance; Net income excluding valuation allowance was $18.8 million 32012 Net loss was effected by a non- cash pre tax impairment charge of $236.4 million relating to the North Brawley and OREG IV power plants

Earnings

(Loss)

per Share

(Diluted)

2008 2009 2010 20112 20123 9M 2012 9M 2013

$0.98 $1.51 $0.82 $(0.95) $(4.54) $0.35 $0.72

Financials - Adjusted EBITDA & EPS

18

Adjusted EBITDA1

$122

$167 $164 $167 $186

$150

$176

2008 2009 2010 2011 2012 9M 2012 9M 2013


Total Cash (Incl. $84 million restricted cash) $119

Principal payment for the remainder of 2013 $ 31

Corporate debt $467(43%)

Project Finance debt $608 (57%)

Property, plant and equipment, net and construction in process ($336 million) $1,719

Total assets $2,168

Total liabilities $1,431

Equity $737

Net debt $956

Net-Debt-to-Capital Ratio 56%

Strong Balance Sheet

19

As of Sept. 30, 2013 (in millions of USD)

Additional Capital sources

• Unused corporate lines of credit of $145 million

• Expected - up to $45 million under the OPIC loan in 2013

• Expected - an estimated amount of $30 million1 Treasury cash grant for Heber Solar and Don A. Campbell

(Wild rose)

1 Estimated amount based on construction cost of $4.5 million per MW and 28% Treasury cash grant (subject to 7.3% sequestration)


Investment Highlights

• Strong global demand for renewable energy

• Federal and state regulations support

• Base load energy that optimizes grid utilization

• Technology leader with proven track record

• Balanced business model: Electricity & Products segments

• Strong balance sheet

• Access to additional sources of capital

• Positive cash flow from operation

• Vertical Integration

20


21

The Power of Experience

For further information: www.ormat.com/ [email protected]

Thank you


Air-Cooled Binary Geothermal Power Plant

22


Recovered Energy Generation (REG) System

23


Reconciliation of Adjusted EBITDA and Additional

Cash Flows Information

24

Reconciliation of EBITDA, Adjusted EBITDA and Additional Cash Flows Information

For the Nine and Three-Month Periods Ended September 30, 2013 and 2012

(Unaudited)

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, excluding impairment of long-lived assets and one-time termination fee. EBITDA and Adjusted EBITDA are not a measurement of financial

performance or liquidity under accounting principles generally accepted in the United States of America 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 of our operating performance or any other measures of performance derived

in accordance with accounting principles generally accepted in the United States of America. EBITDA and Adjusted EBITDA are presented because we believe they are

frequently used by securities analysts, investors and other interested parties in the evaluation of a company’s ability to service and/or incur debt. However, other

companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do.

The following tables reconcile net cash provided by (used in) operating activities and net income to EBITDA and Adjusted EBITDA for the nine and three-month periods

ended September 30, 2013 and 2012:


Reconciliation of Adjusted EBITDA

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