Slide 1: Energy Efficiency Reimagined
Energy Efficiency Reimagined NASDAQ: TGEN Third Quarter 2019 Earnings Review November 12, 2019
Slide 2: Participants
Participants Benjamin Locke Chief Executive Officer President & Chief Operating Robert Panora Officer Bonnie Brown Chief Accounting Officer 2
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation and accompanying documents contain “forward-looking statements” which may describe strategies, goals, outlooks or other non- historical matters, or projected revenues, income, returns or other financial measures, that may include words such as "believe," "expe
Slide 4: Earnings Call Agenda
Earnings Call Agenda Benjamin Locke Tecogen Overview Q3 ‘19 Financial Overview Strategic Achievements Bonnie Brown Financial Review Robert Panora Ultera Emissions Update Benjamin Locke Closing comments Q&A 4
Slide 5: Advanced Modular Cogeneration Systems
Advanced Modular Cogeneration Systems Heat, Power, and/or Cooling that is: Cheaper Industry leading efficiency and reduced exposure to expensive electricity Cleaner Proprietary near-zero emissions technology, GHG reductions More reliable Real-time monitoring, blackout protection, and improved grid r
Slide 6: Q3 2019 Financial Results
Q3 2019 Financial Results 3Q’19 revenues of $8.7 million compared to T4Q - Revenue/Gross Profit $7.9 million in 3Q’18 $40 $ in Millions $35 $30 3Q’19 Net loss of $586K compared to $603K $25 $20 for 3Q ‘18 $15 $10 $5 3Q’19 Overall gross margin of 33% compared $0 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q
Slide 7: Q3 2019 Revenues of $8.7MM
Q3 2019 Revenues of $8.7MM $ in thousands 3Q'19 3Q'18 YoY Change % Chg Revenue Increased revenues of Products $ 3,790 $ 2,765 $ 1,025 9.2%, led by growth in Service 4,249 3,714 535 Energy Production 632 1,460 (828) chiller sales of 94%, Total Revenue 8,671 7,939 732 9.2% Gross Profit year over year
Slide 8: Product and Installation Backlog
Product and Installation Backlog Customer Segment 8.3% Indoor Growing 6.5% Office Building 8.1% Recreation 61.7% 8.3% Multi-Unit Health Care Residential 1.1% Education 4.1% Industrial & Manufacturing Current Backlog of $ 22.6 million Product backlog: $14.6 mm, Install backlog $8.0 mm 8
Slide 9: Strategic Achievements
Strategic Achievements Adjusted product Reduced lower Forklift Emissions Growth in core mix to emphasize margin installation program with business chiller sales services Cat/Mitsubishi expected in 2020 Less competition, Focus on higher Potential for fleet Product sales and Well defined margin produc
Slide 10: Q3 2019 Financial Metrics: Revenues, Margins and Profitability
Q3 2019 Financial Metrics: Revenues, Margins and Profitability Quarter Ended September 30, YoY % of Total $ in thousands 2019 2018 Growth Rev Revenue Overall revenue increase of 9.2% to Cogeneration Chiller $ 1,656 2,135 $ 1,664 1,101 0% 94% 19% 25% $8.7 million, year over year Total Product Revenue
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation Q3 2019 and 2018 Comparative Net loss to Year To Date, September 30, Non-GAAP financial disclosure 2019 2018 Adjusted EBITDA* Reconciliation Net Income (loss) attributable to Tecogen Inc. $ (4,223,455) $ (1,336,628) Interest expense, net 62,757 48,269 EBITDA: Interest
Slide 12: Emissions Technology Update – MCFA Forklift
Emissions Technology Update – MCFA Forklift Completed collaborative effort to optimize Typical Test Results for NOx Compared to engine tuning for Ultera Standard Factory Emissions System Participants Engineers from MCFA and engine supplier (Mitsubishi affiliate) Tecogen development team Test basis D
Slide 13: Emissions Technology Update (2)
Emissions Technology Update (2) SoCal Water district pump project for upsized Ultera System Completed detailed design of system (Phase 1) of contract Design submitted and approved by district Specified to adapt to 800 horsepower Caterpillar natural gas engines Anticipate order for two systems early
Slide 14: Market Outlook
Market Outlook Strong focus on resiliency California situation creates compelling opportunity Increased interest in systems that reduce dependence on grid but not subject to punitive cogeneration tariffs Opportunity for all of Tecogen products, including Ultera retrofits to standby generators New sa
Slide 15: Closing Comments
Closing Comments Tecogen Value Drivers: Use abundant and inexpensive gas efficiently and cleanly to meet energy and resiliency needs of large facilities Differentiate Tecogen products and factory service capabilities in key growth markets and geographies Maximize margin and profitability of core bus
Slide 16: Q&A Company Information
Q&A Company Information Tecogen Inc. 45 First Ave Waltham, MA 02451 www.Tecogen.com Contact information Benjamin Locke, CEO 781.466.6402 Benjamin.Locke@Tecogen.com 16