Tecogen Inc. · AMEX:TGEN

Tecogen — Rodman & Renshaw 17th Annual Global Investment Conference 2015

27 slides from Tecogen's conference presentation, Sep 3, 2015

  1. Slide 1: Advanced Modular CHP Systems

    Advanced Modular CHP Systems “Scogenty NASDAQ: TGEN

  2. Slide 2: Rodman & Renshaw 17th Annual Global Investment Conference

    Benjamin Locke, Co-CEO Rodman & Renshaw: 17th Annual Global Investment Conference September 9, 2015 2

  3. Slide 3: Safe Harbor Statement

    Safe Harbor Statement This presentation included 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

  4. Slide 4: Pioneering Emissions Technology

    Pioneering Emissions Technology Robert Panora, President & COO Ultra Emissions Technology Video: (click here for Video) 4

  5. Slide 5: Tecogen

    Tecogen Revolutionizing Distributed Generation Tecogen Core Business  Build, Sell, Install, and Service Advanced, Modular Combined Heat and Power (CHP) Systems  Proprietary Technology  Industry Leader Other Build/Sell/Service Business Tecogen CHP System  Gas Driven Chillers  Gas Driven Heat Pum

  6. Slide 6: The Company

    The Company Key Stats  Headquartered in Massachusetts  Nine service centers  2000+ units shipped  Revenue: $19.3 M (2014) First (and only) engine-driven CHP module to obtain full Spin Out of First inverter-based CHP California Electric Rule 21 American module to obtain CE mark TGEN certification

  7. Slide 7: Market Opportunity

    Market Opportunity Dramatic Improvements in DG Technology Unique Benefits Market Resurgence Financial Strengths  Driven by High electric,  Significant growth in  Excellent margins low gas prices large markets (NY, CA)  Increasing revenues  Dramatic, long-term  Historic market barriers  Contra

  8. Slide 8: Growth Strategy

    Growth Strategy  Possess strong technical advantages Expansion in Existing Markets  Markets largely untapped  Superior value proposition  Leverage experience to capture more revenue Expansion of Turnkey Service Centers  Become sole source for energy companies  Bolster direct sales effort  Spe

  9. Slide 9: Combined Heat & Power Fundamentals

    Combined Heat & Power Fundamentals  CHP relocates power generation to onsite Patented − Waste heat purposefully used Emissions − Efficiency increased two fold (90%) over utility power Natural − Energy costs sharply reduced Gas  High electric rates, low gas Heat rates drive CHP, Chiller savings − E

  10. Slide 10: Other CHP Drivers

    Other CHP Drivers  Resiliance to Grid Failure − Aging grid infrastructure − Congested sub-stations − Storm, natural disaster vulnerability − Terrorism concerns  CHP Better suited for urban environments  Wind, Solar not practical  Fuel cells cost prohibitive  Environmental Benefits  Reduces Car

  11. Slide 11: Product Suite

    Product Suite CHP Modules TECOCHILL Water Chillers Ilios Water Heaters Electricity & Heat Cooling & Heat 2-3x Heat Efficiency Ultra-low Emission Kits 11

  12. Slide 12: Competitive Positioning

    Competitive Positioning CHP TECOCHILL Chillers Ilios Heating Systems • No direct • York / Caterpillar • Capstone, comparables Competition regional players (new) • Conventional • Gas absorption heaters • IP, cost, efficiency, • IP, cost, efficiency, • IP, efficiency, Strengths emissions, emissions em

  13. Slide 13: Sales and Marketing

    Sales and Marketing Sales Network Multi-Unit Senior Residential 12% Homes  8 FT Direct Sales (MA, CA, FL, NY, CT) Office Buildings 13% Industrial 13% 15%  Manufacturer Representatives  30 Reps in 26 states/ 11 countries Other 15% Hospitals 14% Schools  Commision based 17%  Sales Agents  10 Ind

  14. Slide 14: Patented Advanced Ultra-Clean Emissions System

    Patented Advanced Ultra-Clean Emissions System  Ultra-Clean Emissions is an Compliant with New California Emissions option on all Tecogen products. Criteria Pollutant Emissions by Source  Retrofit kit installed at water district pumping station.  Opportunity - all gas water pumping in Southern Ca

  15. Slide 15: Growth Opportunity – Ultra Emission System

    Growth Opportunity – Ultra Emission System Features  Patent Protected Ultra Retrofit System  Third party verification  Tecogen CHP, Chillers, Ilios Systems √ (2012)  Long-term tests  Stationary Engines √ (2014)  Natural Gas Generators √ (2015)  Proven in a larger industrial  Small industrial

  16. Slide 16: Financial Metrics

    Financial Metrics Revenues, Margins, Growth Tecogen Revenue & Margins Revenue Contributions  Three revenue streams − Product sales − Long-term service contracts provide stable ongoing revenue base − Turnkey Installation through Tecogen service operations  Low cost basis of products − Excellent mar

  17. Slide 17: Consistent Financial Trends

    Consistent Financial Trends Revenues Trailing 4 Quarters - in Millions $30 $25 $20 $15 $10 $5 $- 2013 Q3 2014 Q1 2014 Q3 2015 Q1 2015 Q3 2015 Q4 Goal Goal Products Services Backlog of Product and Installation Services Operating Expense as a % of Revenue $ Millions Trailing 4 Quarters (%) 70% $14 $12

  18. Slide 18: 2Q 2015 Summary

    2Q 2015 Summary • Total Revenues $6.38M - up 41% vs. 2Q 2014 • Gross Profit $2.14M – up 59% vs. 2Q 2014 • Gross Margin 33.5% - up 13% vs. 2Q 2014 • Meeting gross margin goals in both Products and Maintenance Services • 66% growth in Product revenues vs. 2Q 2014 • Quarter End Backlog of $10.8 MM 18

  19. Slide 19: Backlog by End Market

    Backlog by End Market Multi-unit Other Residential Athletic Club Office Building Industrial Education Hospitality Health Care Correctional Facility 19

  20. Slide 20: Financial Outlook

    Financial Outlook • Targeting stable Book- to-Bill ratio of 1-1.5x • Ongoing expense improvement from lean manufacturing initiatives • Gross Margins 35-40% • Quarterly Backlog >$10M 20

  21. Slide 21: Future Even More Promising

    Future Even More Promising Confluence of Factors Vulnerability Favorable Alternative and Natural Gas of Electric Regulatory Renewables Power Grid Environment  Abundant  Exposed by  Emissions in  Marginal supply natural mainstream effectiveness  Low cost disasters discussion  Uneffected  Prolo

  22. Slide 22: Q&A

    Advanced Modular CHP Systems Q&A NASDAQ: TGEN

  23. Slide 23: Appendix

    Appendix • Management Bios • Analyst Coverage • Contacts 23

  24. Slide 24: Management Team

    Management Team John Hatsopoulos, Benjamin Locke, Co-Chief Executive Officer & Board Member Co-Chief Executive Officer  CEO since the company‘s organization in 2000  Co-CEO since 2014, joined the company as General Manager in June of 2013.  Co-Founder of Thermo Electron Corp., which is now Fisher

  25. Slide 25: Board of Directors

    Board of Directors Angelina Galiteva, John Hatsopoulos, Earl Lewis, Chairperson of the Board Co-Chief Executive Officer, Director Director  Chairperson of the Company since  CEO since the Company‘s organization  Board member since 2014 2005 in 2000  Chairman of Harvard Bioscience  Founder and C

  26. Slide 26: Analyst Coverage

    Analyst Coverage JinMing Liu, PhD, CFA Ardour Capital BUY $7 target 212 946 6830 jliu@ardourcapital.com 26

  27. Slide 27: Contact Information

    Contact Information 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 27

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