Slide 1: Fourth Quarter & Fiscal Year End Earnings Call
NASDAQ: TGEN FOURTH QUARTER & FISCAL YEAR END Earnings Call March 12, 2020
Slide 2: Participants
Participants Benjamin Locke Chief Executive Officer President & Chief Operating Robert Panora Officer Bonnie Brown Chief Accounting Officer 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 2019 Financial Overview Strategic Achievements Market Update Bonnie Brown Financial Review 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: 4th Qtr 2019 Adjusted EBITDA of $63K
4th Qtr 2019 Adjusted EBITDA of $63K $ in thousands 4Q'19 4Q’18 YoY Change Revenues = $8.7 million Revenue • Compared to $9.3 million in 4Q’18, 6% decrease Products $ 3,718 $ 3,703 $ 15 Service 4,304 3,965 339 • Product revenue flat, Service up 9% Energy Production 690 1,649 (959) • Energy productio
Slide 7: YE 2019 Adjusted EBITDA of $114K
YE 2019 Adjusted EBITDA of $114K $ in thousands YE 2019 YE 2018 YoY Change FY ‘19 revenues = $33.4 million Revenue $ 12,978 $ 12,625 $ 353 • Compared to $35.9 million in FY’18, 7% decrease Products Service 17,308 16,859 448 • Product revenue up 3%, Service revenue up 3% Energy Production Total Reven
Slide 8: Earnings Takeaways
Earnings Takeaways Core Business is Stable • YoY Product and Service Revenue increasing • Energy Production revenue drop due to sale of ADG assets, Growth in Core Business remaining assets producing high margins • Installation revenue decreasing as close out large turnkey projects 2020 Profitability
Slide 9: Product and Installation Backlog
Product and Installation Backlog Backlog - Product and Installation Services Customer Segment $ Millions 12.3% $35.0 Indoor Growing 5.8% $30.0 Office Building 47.8% 1.3% Multi-Unit $25.0 Recreation Residential $20.0 $15.0 13.5% Health Care $10.0 $5.0 $- 11.9% Jul-16 Jul-15 Jul-17 Jul-18 Jul-19 May-1
Slide 10: Market Update
Market Update Continue demonstrating benefits of Mechanical CHP • Renewed interest by gas companies to increase gas sales • Compelling economic advantages over electric chillers • Substantial growth opportunity both in US and International • Partnership opportunities with existing chiller manufactur
Slide 11: Q4 2019 Financial Results: Revenues, Margins and Profitability
Q4 2019 Financial Results: Revenues, Margins and Profitability Quarter Ended December 31, YoY % of $ in thousands 2019 2018 Growth Total Rev Revenue Decrease in overall revenue, a result of the sale Cogeneration $ 2,185 $ 750 191% 25% of energy producing assets Chiller Total Product Revenue 1,533 3,
Slide 12: Year End 2019 Financial Results: Revenues, Margins and Profitability
Year End 2019 Financial Results: Revenues, Margins and Profitability Year Ended December 31, YoY 2019 % of $ in thousands 2019 2018 Growth Total Rev Revenue Four diverse revenue streams Cogeneration $ 7,073 $ 5,467 29% 21% Chiller 5,905 7,158 -18% 18% • Product sales growth of 3% Total Product Reven
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA positive for the year and 4th quarter Non-GAAP financial disclosure 4Q 2019 4Q 2018 Q4 and YE Comparative Net loss to Adjusted Net loss attributable to Tecogen Inc. $ (485,564) $ (4,371,904) Interest expense, net 38,161 63,716 EBITDA Reconciliation Depr
Slide 14: Emissions Technology Update
Emissions Technology Update 14
Slide 15: Forklift Update
Forklift Update NOx +THC CO Forklift testing Successfully Concluded [g/kw-hr] [g/kw-hr] • CARB “Near Zero "certification attainable Requirements for Optional 0.1 20.6 based on projection of test results “Near Zero” Target Certification Requirements for 0.8 20.6 MCFA has arranged dyno certifi
Slide 16: Forklift Update
Forklift Update MODEX Leading tradeshow for material handling technology • Forklift suppliers’ major exhibitors • March 9-12 Atlanta, Georgia MCFA Prototype featured in PERC booth First opportunity to expose technology to potential customers • Feedback positive • Interviewed by six reporters • Low e
Slide 17: Other Emissions Activity
Other Emissions Activity Concluded Phase 1 of catalyst development program Test results promising • potential for improved NOx reduction • Evaluating next steps with research subcontractor Anticipate order for two large Ultera systems (800 hp) • Municipal water pumping • Design funded by water distr
Slide 18: 2020 Core Business Outlook
2020 Core Business Outlook Maintain Growth in Product Revenue • Very low gas prices creating new opportunities in US • Canada expansion will drive additional product sales • New functionality for Inverde e+ systems • Tecofrost backlog growing in new business segments • Increased awareness of mechani
Slide 19: Q&A Company 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 19