Slide 1: Sidoti Conference January 17th 2024
OTCQX: TGEN SIDOTI CONFERENCE JANUARY 17TH 2024 1
Slide 2: 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 3: Agenda
AGENDA Overview of the Business Products Markets Competitive Advantage Strategic Plan for Growth Growing Recurring Revenue Growing Margin with Operational Improvements, Self Learning Control & Utility Value Stack Growing Product Revenue with Cooling as A Service 3
Slide 4: Background of Tecogen
BACKGROUND OF TECOGEN Our objective is provide energy savings while having a cleaner environmental footprint Units Shipped Technology pioneer in cogeneration, chillers, heat pumps, & emissions controls Originally part of Thermo Electron’s power division (now Thermo Fisher) Service Centers Spun out a
Slide 5: Power generation, clean cooling and long term maintenance
POWER LONG TERM GENERATION + MAINTENANCE & RESILIENCY ENERGY ASSET Modular microgrids for MANAGEMENT energy savings, Helping customers achieve greenhouse gas (GHG) predictable energy savings with reductions and resiliency comprehensive maintenance to grid outages services CLEAN COOLING Hybrid and En
Slide 6: Revenue Segments
REVENUE SEGMENTS PRODUCT SALES SERVICES Sales of combined heat and We service most purchased power, and clean cooling Tecogen equipment in operation systems to building owners. through long term maintenance Key market segments include agreements through 11 service multifamily residential, health CLE
Slide 7: Business Model
BUSINESS MODEL Most products are sold with a long-term maintenance contract Each unit we place in service increases the long-term recurring revenue Product Sale Service Year 1 Service Year 5 Service Year 10 Service Year 15 Service Year 20 Cost Operating Segment Profit 7
Slide 8: Market Size
MARKET SIZE Addressable Market Size All Products in New England, NY, NJ, FL, CA Addressable market Indoor Agriculture, Education , $ 234 Million $ 250 Million >$1Bn Utility rates are Food, $ 76 Million increasing in our core markets Beverage, $ 23 Million Multifamily, $ 195 Million Hospital, $ 181 M
Slide 9: Competitive Landscape Cogeneration
Competitive Landscape Cogeneration Easy to Install, Quiet and Tecogen has an advantage in fits in tight spaces buildings that need a quiet, easy to fit cogeneration system Easy Higher efficiency large industrial cogeneration systems won’t fit in most high-rise buildings and are too noisy 75 KW to 1M
Slide 10: Competitive Landscape Chillers
Competitive Landscape Chillers Cost of Operation Tecogen has advantages in buildings High that have electrical capacity constraints or have better uses for the electrical capacity Best ROI in buildings that cool and dehumidify at the same time Focus on indoor agriculture, healthcare, industrial wher
Slide 11: Tecogen Strategic Plan
Tecogen Strategic Plan • Phase 1 – Increase recurring service revenue and establish sales channels relationships January • Increased recurring service revenue by 30% by assuming service agreements for 202 cogeneration 2024 units from competitor (Aegis/Dalkia) • Established multiple new sales channel
Slide 12: Self Learning Intelligent Control of Cogeneration and Chillers
SELF LEARNING INTELLIGENT CONTROL OF COGENERATION AND CHILLERS Based on our remote monitoring platform CHPInsight® Increased equipment run hours and savings Learns from building load profile to optimize operations Utility Demand Response Payments Centralized control of multiple units Can aggregate e
Slide 13: Cooling as a Service
Cooling as a Service Targeted at buildings that need to upgrade their chiller or boiler plant In retrofit applications, buildings may have competing uses for capital, especially in a high interest rate environment. Buildings are likely to defer upgrades or choose systems that have a lower first cost
Slide 14: Cooling as a Service - Economics
Cooling as a Service - Economics Tecogen Owned Third Party Total Energy Assets Owned Energy Assets Managed by Tecogen Revenue $1,785,854 $3,530,625 $5,316,479 EBITDA Profit $788,864 $1,436,506 $2,225,370 EBITDA Margin 44% 41% 42% P&L (FY 2022) for Tecogen’s owned and managed energy portfolio The ene
Slide 15: Relationship Structure
Relationship Structure 1. Tecogen Marketing & Project 2. Development Funds Project Development and Build Out 4. Monthly O&M Service, Billing & Asset Management Fee Cooling and Heating Investor Building Fund Capital Owner 3. Monthly Cooling and Heating as a Service Fee 15
Slide 16: Summary and Q&A
SUMMARY AND Q&A Tecogen is at a turning point Company Information Increased recurring Revenue from service acquisitions Tecogen, Inc Exciting product pipeline including hybrid chiller, Self- learning intelligent control and optimization of cogeneration 45 First Ave and chiller plants Waltham, MA 024