American DG Energy — Investor Presentation (February 2014)
28 slides from American DG Energy's investor presentation, Feb 19, 2014
Slide 1: Investor Presentation: Power to Profit, February 2014
Investor Presentation POWER TO PROFIT February 2014
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 We have made statements in this presentation that constitute “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended , Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation
Slide 3: Corporate Overview, Management Team
▪ Corporate Overview ▪ Management Team
Slide 4: American DG Energy at a Glance
AMERICAN DG ENERGY AT A GLANCE American DG Energy Inc. owns and operates clean, on - site energy systems that produce electricity, hot water, heat and cooling. ▪ These systems save commercial building operators money on their energy, heating and cooling needs. The Company’s business model (“On - Sit
Slide 5: Leadership
LEADERSHIP John Hatsopoulos – Chief Executive Officer ▪ Co - founder of Thermo Electron Corporation, which is now Thermo Fisher Scientific, Inc. (NYSE:TMO) with a market cap. of $41.7 billion. He also held the positions of President and Vice - Chairman of the Board of Directors. ▪ Serves as Chairman
Slide 6: Leadership (Continued)
LEADERSHIP (CONTINUED) Charles Maxwell – Chairman ▪ Former Sr. Energy Analyst with Weeden & Co. Research where he advised financial institutions on the oil and gas industry. As an Oil Analyst, he was ranked by Institutional Investor magazine as No. 1 in his field in 1972, 1974, 1977, and 1981 to 198
Slide 7: Business Overview
▪ Business Overview
Slide 8: Business Overview
BUSINESS OVERVIEW ADGE owns and operates highly efficient energy systems installed on customers’ property, acting as an “On - Site Utility” , by entering into long - term Purchase Power Agreements. ▪ These systems include: ₋ Combined Heat and Power (“CHP”) systems ₋ Chillers ₋ Boilers and heat pumps
Slide 9: Product offerings: energy, heating and cooling systems
The Company’s product offerings include an array of energy, heating and cooling systems. ▪ Next - generation energy systems with cutting edge technology ▪ Primarily purchased from an affiliated third party (Tecogen Inc.), as well as other manufacturers TECHNOLOGY RANGE Combined Heat and Power (CHP)
Slide 10: Improving Energy Efficiency
IMPROVING ENERGY EFFICIENCY ADGE owns and operates CHP systems that are significantly more efficient than other methods of energy production – including the traditional electric grid and on - site boilers. Electric Grid (33 % Efficient) Boilers (65 % Efficient) ADGE CHP Systems 88 % Efficient Tradit
Slide 11: CHP – How Does It Work?
CHP – HOW DOES IT WORK? Combined heat and power generation (“CHP”) systems are highly efficient units that provide lower electricity and heating expenditures for customers from the production of electricity and simultaneous output of hot water and heat. ▪ A single energy source (natural gas) is used
Slide 12: Key Supplier Relationship
KEY SUPPLIER RELATIONSHIP ADGE purchases ~80% (1) of its energy systems from Tecogen Inc., an affiliated next - generation manufacturer of natural gas, engine driven commercial and industrial cooling and CHP systems . ▪ Tecogen was formerly a division of Thermo Electron, now known as Thermo Fisher S
Slide 13: Advanced Emissions Systems
ADVANCED EMISSIONS SYSTEMS Tecogen’s systems are a leader not only in energy efficiency, but also in reducing harmful emissions in comparison to other combustion systems. ▪ A Tecogen CHP system operating at 150kW and 6,000 running hours / year can reduce CO 2 emissions by 607 tons / year. ₋ The equi
Slide 14: Client Base
▪ Client Base
Slide 15: Target Market
TARGET MARKET Geographic Focus ▪ North America ▪ Europe (through EuroSite Power, our majority owned subsidiary) Target Facilities ▪ Hotels ▪ Healthcare facilities, nursing care and hospitals ▪ Large multi - family residential ▪ Other commercial real estate Sales Strategy ▪ Property owners and “C” -
Slide 16: Customer Value Proposition
CUSTOMER VALUE PROPOSITION ADGE offers its clients an attractive set of cost - effective solutions. ▪ No initial costs ₋ No cost alternative to purchasing necessary energy equipment ₋ No capital, budget or financing required ▪ Long - term financial benefits ₋ Guaranteed lower energy costs – typicall
Slide 17: Case Study – Typical Client
CASE STUDY – TYPICAL CLIENT Double Tree Suites by Hilton (Allston) ▪ Located in Allston, Massachusetts ▪ Installed in December 2010 ▪ 400 rooms + conference facilities, restaurant and jazz club Client Goals ▪ Improve cash flow, no upfront costs, no operating responsibility ▪ Estimated savings - $180
Slide 18: Case Study – ADGE IRR
CASE STUDY – ADGE IRR ADGE aims for a >20% IRR on each of its client transactions Equipment 150 kW CHP System Initial ADGE Investment $345,000 Yearly Revenue $284,000 Term of Customer Contract 15 Years Revenue (over 15 Years) $4,908,000 Gross Margins $84,000 Gross Margins (over 15 Years) $1,456,000
Slide 19: Strong presence in Northeast US; $300M revenue pipeline
To date, ADGE has had a strong presence in the Northeast of the United States. ▪ Plans to aggressively continue expansion Operating 116 Backlog 36 Total 152 CUSTOMER CONCENTRATION $300M in Revenue Pipeline ▪ Estimated potential revenue value of all signed energy agreements, assuming all carried out
Slide 20: Revenues & Energy Produced, Future Growth, European Operations
▪ Revenues & Energy Produced ▪ Future Growth ▪ European Operations
Slide 21: Revenues & Energy Produced
$5.6 $6.0 $5.7 $7.5 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2010 2011 2012 2013 (Unaudited) REVENUES & ENERGY PRODUCED Revenues (FY 2010 – 2013 ) Millions 61.1M kWh 71.4M kWh 73.9 M kWh 99.4M kWh 0 20 40 60 80 100 120 2010 2011 2012 2013 (Unaudited) Millions kWh Energy Produced (FY 2010 – 2013)
Slide 22: Future Growth
FUTURE GROWTH ADGE is focused on the following: ▪ Execute on backlog of business ₋ 36 signed clients and currently processing their orders ▪ Penetrate larger real estate organizations ₋ Operators of large commercial real estate holdings ₋ REITS / Healthcare chains / Hospitality / Commercial building
Slide 23: European Operations
EUROPEAN OPERATIONS The Company has identified attractive opportunities in Europe and has expanded its business model via its majority owned subsidiary, EuroSite Power Inc. (OTCQB:EUSP). ▪ Lack of competition in target customer segments including hotel, healthcare and multi - tenant residential. ₋ C
Slide 24: Capitalization / Ownership Table
▪ Capitalization / Ownership Table
Slide 25: Capitalization / Ownership Table
CAPITALIZATION / OWNERSHIP TABLE OWNERSHIP TABLE as of 12/31/13 Holder Name Beneficial Shares % of Shares Officers & Directors John N. Hatsopoulos (CEO) (1) 5,378,507 8.7% Barry Sanders (COO) 1,024,000 1.7% Charles Maxwell (Chairman) 844,339 1.4% Other Officers & Directors 175,000 0.3% Total Officer
Slide 26: Power to Profit – Contact
POWER TO PROFIT Corporate Headquarters 45 First Avenue, Waltham, MA 02451 Contact Phones: 781 - 522 - 6000 | 877 - 292 - 2343 Fax: 781 - 522 - 6050 [email protected] | www.americandg.com Facebook.com/AmericanDGEnergy T witter.com/AmericanDG
Slide 27: Appendix
▪ Appendix
Slide 28: Revenue & Energy Production (Q3 2013)
Energy Production (Q3 - 2013) REVENUE & ENERGY PRODUCTION ( Q3 - 2013) Q3 2013 Energy Production = 22.7 Million kWh Electricity 41% Cooling 29 % Thermal 30% Housing 21% Hospitality 22% Other 4% Healthcare 16% Education 17% Fitness 20% Revenue (Q3 - 2013) 28
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