Slide 1: First Quarter 2020 Earnings Call
NASDAQ: TGEN FIRST QUARTER 2020 Earnings Call May 14, 2020
Slide 2: Participants
Participants Benjamin Locke Chief Executive Officer President & Chief Operating Robert Panora Officer Bonnie Brown Chief Accounting Officer Jack Whiting General Counsel & Secretary 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 Q1 2020 Results Overview Bonnie Brown Q1 2020 Financial Review Benjamin Locke Market Update Robert Panora Emissions & Technology Update Benjamin Locke 2020 Outlook Q&A 4
Slide 5: Advanced Modular Cogeneration Systems
Advanced Modular Cogeneration Systems Heat, Power, and/or Cooling that is: Efficient Industry leading efficiency and reduced exposure to expensive electricity Clean Proprietary near-zero emissions technology, GHG reductions Reliable Real-time monitoring, blackout protection, and improved grid resili
Slide 6: 1st Qtr 2020 Results
1st Qtr 2020 Results $ in thousands 1Q'20 1Q'19 YoY Change % Chg Revenues = $7.9 million Revenue • Compared to $8.2 million in 1Q’19, 3% decrease Products $ 2,750 $ 3,025 $ (274) • Product revenue down 9%, Service up 14% Service 4,461 3,911 550 Energy Production 751 1,241 (490) • Includes return of
Slide 7: Q1 2020 Financial Results: Revenues, Margins, and Profitability
Q1 2020 Financial Results: Revenues, Margins, and Profitability Quarter Ended March 31, YoY % of Total Increase in combined product and service revenue $ in thousands 2020 2019 Growth Rev of 4% Revenue Cogeneration $ 3,236 $ 1,819 78% 41% Chiller (486) 1,205 -140% -6% Decrease in overall revenue, a
Slide 8: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Quarter Ended, March 31, Non-GAAP financial disclosure 2020 2019 Reconciliation of Q1 2020 and 2019 Net loss to Net loss attributable to Tecogen Inc. $ (1,202,387) $ (3,280,077) Adjusted EBITDA Interest expense, net 48,258 27,494 Depreciation & amortization, net 90,152
Slide 9: Earnings Takeaways
Earnings Takeaways Core Business is Stable • Shipped $3.4 million of Products in Q1 (revenue impacted by product return) Core Business is Stable • Service revenue continues to grow as increase Service contracts • Energy Production assets produce consistent revenues (revenue drop from previous asset
Slide 10: Product and Installation Backlog
Product and Installation Backlog Customer Segment Backlog - Product and Installation Services 14.1% $ Millions Indoor Growing $35.0 18.5% $30.0 Office Building 39.7% Multi-Unit 1.3% $25.0 Residential Recreation $20.0 5.0% $15.0 Health Care $10.0 $5.0 $- 12.6% Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Nov-1
Slide 11: Emissions Technology Update
Emissions Technology Update MCFA (Mitsubishi Caterpillar Forklift America) Program Precertification Testing of MCFA engine was planned for mid-May by SwRI (Southwest Research Institute) Objective was to demonstrate revised Ultera engine tuning in certification test cycle Project remains on hold unti
Slide 12: 2020 Business Outlook
2020 Business Outlook Growth in Product Revenue • Steady demand for Tecogen products despite COVID pandemic • Expanding sales geography in North America (e.g. Toronto) • Expanding sales of chiller products through partnerships (e.g. Vilter) • Maintain strong product margins Growth in Service Revenue
Slide 13: 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 13