Slide 1: Q3 2023 Earnings Call, November 9, 2023
OTCQX: TGEN EARNINGS CALL NOVEMBER 9, 2023 Q3 2023 1
Slide 2: Management
MANAGEMENT Abinand Rangesh – CEO & CFO Robert Panora – COO & President Roger Deschenes – CAO 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: Agenda
AGENDA Progress Update 3Q 2023 Results Q&A 4
Slide 5: Progress Update - Key Numbers
Progress Update - Key Numbers Q4 22 Q1 23 Q2 23 Q3 23 Revenue $4.53m $5.37m $6.75m $7.11m Adjusted EBITDA Loss $1.15m Loss $1.28m Loss $592k Loss $181k Loss Inventory $10.48m $11.86m $12.03 m $11.04m Backlog $6.7m $7.05m $8.23m $7.5m • Service margin adversely affected presently due to material repl
Slide 6: Product Marketing Update
Product Marketing Update • Targeted marketing via informational articles in specialist trade publications Sales Pipeline • Direct outreach to contractors and design build firms working on process cooling 16% Growth • Product Sales Pipeline for FY 2023 will be 20% higher than FY 2022 (presently 16% h
Slide 7: Long Term Maintenance & Energy Asset
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 8: 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 9: 3Q 2023 Results
3Q 2023 RESULTS $ in thousands 3Q'23 3Q'22 QoQ Change % Revenue = $7.1 million, up 7.5% from Q3 Revenues 22 Products $ 2,939 $ 3,207 $ (268) Services 3,843 3,079 764 Energy Production 331 333 (2) Key Points Total Revenue 7,113 6,618 494 7.5% • Net loss $482k Gross Profit • Net loss of $0.02/share Q3
Slide 10: 3Q 2023 Adjusted EBITDA Reconciliation
3Q 2023 ADJUSTED EBITDA RECONCILIATION EBITDA: Earnings Before Interest, Taxes, Quarter Ended, September 30 Depreciation & Amortization Non-GAAP financial disclosure (in thousands) 2023 2022 EBITDA and adjusted EBITDA were both Net loss attributable to Tecogen Inc. $ (482) $ (257) negative at $0.18m
Slide 11: 3Q 2023 Performance by Segment
3Q 2023 PERFORMANCE BY SEGMENT QoQ Change Products 3Q Revenues ($ thousands) 2023 2022 % Chiller revenue increased 17.8% - margin Revenues has recovered to 43% Cogeneration $ 899 $ 1,548 -42% Cogeneration margin – 39% Chiller 1,935 1,642 18% Engineered accessories 105 16 536% Services Total Product
Slide 12: Plans to Increase Margin
PLANS TO INCREASE MARGIN Product Margin Further increase in prices for some products Improve commonality of parts across products to improve purchasing power Redesign where necessary to reduce complexity Service Margin Increased prices on contract renewals Increased billable contract work to improve
Slide 13: Summary and Q&A
SUMMARY AND Q&A Priorities Company Information ✓ Cashflow Tecogen Inc. ✓ Grow revenue and backlog 45 First Ave Waltham, MA 02451 ✓ Increase margin for both Services and Products www.Tecogen.com Contact information Abinand Rangesh, CEO 781.466.6487 Abinand.rangesh@Tecogen.com 13