Slide 1: 3Q 2015 Earnings
NASDAQ: TGEN 3Q 2015 Earnings
Slide 2: Participants
Participants John Hatsopoulos •Co-Chief Executive Officer, Director Benjamin Locke •Co-Chief Executive Officer Robert Panora •President & Chief Operating Officer David Garrison •Chief Financial Officer Ariel Babcock •Director, Investor Relations 2 3Q 2015 Earnings Call
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation includes forward-looking statements within the meaning of Section 27-A of the Securities Act of 1933, and Section 21-E of the Securities Exchange Act of 1934. Such statements include declarations regarding the intent, belief, or current expectations of the Com
Slide 4: Tecogen Revolutionizing Distributed Generation
Tecogen Revolutionizing Distributed Generation 4 Other Build/Sell/Service Business Gas Driven Chillers Gas Driven Heat Pumps (Ilios) Ultra Emission Retrofit Kits Turnkey Installation Services Tecogen Core Business Build, Sell, Install, and Service Advanced, Modular Combined Heat and Power
Slide 5: 3Q 2015 Summary: metrics for growth
3Q 2015 Summary: metrics for growth REVENUE Total 3Q15 Revenue of $4.68M vs. $4.18M in 3Q14, 12% Y/Y total revenue growth YTD 2015 Revenue of $17.16M vs. $12.93M in 2014, 33% Y/Y growth Highest ever reported 3Q revenue GROSS MARGIN 3Q15 combined Gross Margin of 35.7% vs. 26.1% in 3Q14, over
Slide 6: Current Backlog: $11.0 mill.
Current Backlog: $11.0 mill. 6 3Q 2015 Earnings Call Other 2% Athletic Club 5% Office/Mixed Use 6% Industrial 6% School 9% Senior Homes 9% Correctional Facility 14% Hotel 18% Multi-Unit Resi. 31%
Slide 7: Executing on Growth Strategy
Executing on Growth Strategy ILIOS UPDATE First sales to new Atlanta market Added sales reps in Atlanta and Chicago Successfully commissioned the largest (7 unit) Ilios installation to-date Ultera™ EMISSIONS Rebranding of emissions technology to strengthen the system as a stand-alone product a
Slide 8: Ultera Emissions
Ultera™ Emissions • BioFuel Application Success– – Retrofit kit installed on 50L Caterpillar engine – Initial results show successful emissions reduction at Southern California wastewater treatment plant – BioFuel engines must comply with stricter emissions regulations in So. Cal. beginning in 2017
Slide 9: Consistent Financial Progress
Consistent Financial Progress 9 3Q 2015 Earnings Call 0.00 5.00 10.00 15.00 20.00 25.00 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q4 Goal Revenues Trailing 4 Quarters - in Millions Products Services 25.0% 27.0% 29.0% 31.0% 33.0% 35.0% 37.0% 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q4 Goal Gross Margin Traili
Slide 10: Revenue Segments
Revenue Segments 10 3Q 2015 Earnings Call Revenues • Product revenue posted strong growth from increased shipments of CHP units Y/Y • Services revenue declined as installations took longer than anticipated Cost of Sales • Product cost benefitting from leveraging the fixed cost base • Service exp
Slide 11: Financial Metrics: Revenues, Margins, Growth
Financial Metrics Revenues, Margins, Growth Three revenue streams − Product sales − Long-term service contracts provide stable ongoing revenue − Turnkey Installation through Tecogen service operations Targeting stable book-to-bill ratio of 1 to 1.5x Deliver ongoing expense improvement from lea
Slide 12: Trends Going Forward
Trends Going Forward 3Q 2015 Earnings Call 12 Demand for CHP Systems Remain Strong o Fundamental economics persist (high electricity prices, low cost natural gas, grid resiliency concerns) o Sales team expansion will grow markets, geographies o Ilios continues to grow Ultera Emissions Technology Adv
Slide 13: Q & A
Q & A NASDAQ: TGEN 13 3Q 2015 Earnings Call
Slide 14: Appendix
Appendix • Management Bios • Contacts 14 3Q 2015 Earnings Call
Slide 15: Management Team
Management Team 15 John Hatsopoulos, Co-Chief Executive Officer & Board Member CEO since the company‘s organization in 2000 Co-Founder of Thermo Electron Corp., which is now Fisher Scientific (NYSE:TMO) As Thermo Electron CFO, grew company from a market capitalization of ~$100 million in 1980
Slide 16: Contact Information
Contact Information 16 Company Information Tecogen Inc. 45 First Avenue Waltham, MA 02451 www.tecogen.com Contact John Hatsopoulos, Co-CEO 781.622.1122 John.Hatsopoulos@tecogen.com Ariel Babcock CFA, Director of Investor Relations 781.466.6413 Ariel.Babcock@tecogen.com 3Q 2015 Earnings Call