Slide 1: Energy Efficiency Reimagined
Energy Efficiency Reimagined NASDAQ: TGEN Second Quarter 2019 Earnings Review August 13, 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 Q2 ‘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: Q2 2019 Financial Results
Q2 2019 Financial Results 2Q’19 revenues of $7.9 million compared to $8.5 million in 2Q’18 T4Q - Revenue/Gross Profit 2Q’19 Net loss of $357K compared to $754K $40 $ in Millions for 2Q ‘18 $35 $30 2Q’19 Overall gross margin of 44% compared $25 to 37% in 2Q’18 $20 Despite decline in revenues, gross p
Slide 7: Q2 2019 Gross Profit of $3.4MM
Q2 2019 Gross Profit of $3.4MM $ in thousands 2Q'19 2Q'18 YoY Change % Chg Revenue Products $ 2,445 $ 2,484 $ (38) Service 4,844 4,461 382 Increased gross Energy Production 578 1,508 (930) Total Revenue 7,867 8,453 (586) -7% margins allowed for Gross Profit Products 899 992 (93) increased gross prof
Slide 8: Product and Installation Backlog
Product and Installation Backlog Customer Segment 0.9% Indoor Growing 39.6% 30.6% Multi-Unit Office Building Residential 1.3% Athletic Club 10.2% 1.1% Recreation Hospitality 2.4% Industrial & 6.8% 6.9% Manufacturing Health Care Education Current Backlog of $ 28.0 million Product backlog: $12.0 mm, I
Slide 9: Strategic Achievements
Strategic Achievements Adjusted product Established ADG Forklift Emissions mix to emphasize sites as solid program with Financial Stability chiller sales investment assets Cat/Mitsubishi Less competition, Enabled selective Potential for fleet Zero net debt with Well defined sale to strengthen forkli
Slide 10: Q2 2019 Financial Metrics: Revenues, Margins and Profitability
Q2 2019 Financial Metrics: Revenues, Margins and Profitability Quarter Ended June 30, YoY % of Total $ in thousands 2019 2018 Growth Rev Revenue Cogeneration $ 1,414 $ 1,289 10% 18% Revenue of $7.9 million Chiller 1,032 1,195 -14% 13% Total Product Revenue 2,445 2,484 -2% 31% Maintained 8% higher gr
Slide 11: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation Year To Date, June 30, Non-GAAP financial disclosure 2019 2018 Q2 2019 and 2018 Comparative Net loss to Net Income (loss) attributable to Tecogen Inc. $ (3,637,206) $ (733,592) Adjusted EBITDA* Reconciliation Interest expense, net 44,433 19,057 Depreciation & amortiza
Slide 12: Emissions Technology Update – MCFA Forklift
Emissions Technology Update – MCFA Forklift Review from Last Call: Test results through two engine tuning iterations NOx emissions reduced to 20% of factory system, CO emissions 12% of factory system Levels consistent with program goal of near-zero certification Further improvement possible with ref
Slide 13: Emissions Technology Update (2)
Emissions Technology Update (2) Ultera Automotive Catalyst Development On road Ultera development work with outside research institute progressing Focus is alternative catalyst formulation Testing completion expected in September Ultera Project approved by SoCal Water District Purchase order receive
Slide 14: Market Outlook
Market Outlook Continued Demand for InVerde CHP System Tecogen Service Centers (10) Inverter-based microgrid capability increasingly important to maximize grid support service revenue potential InVerde/Tecopower GHG reductions mitigate potential carbon emission limits for large buildings (e.g. NYC)
Slide 15: Closing Comments
Closing Comments Tecogen Key Value Proposition Remains: Use pipeline 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 Contact 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