American DG Energy — Investor Presentation (June 2010)
31 slides from American DG Energy's investor presentation, Jun 15, 2010
Slide 1: Think Outside The Grid!
Think Outside The Grid! June 2010 ADGE - Europe
Slide 2: Forward Looking Statements
2 2 Forward Looking Statements We have made statements in this presentation that constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements concern our operations, economi
Slide 3: Background at a Glance
3 3 Background at a Glance Thermo Electron’s market capitalization increased approximately 31% (on a compounded basis from 1983-1997) Thermo Electron, now Thermo Fisher Scientific is currently over $20 billion in market capitalization
Slide 4: Management (US)
4 4 Management (US) Dr. George Hatsopoulos, Chairman of the Board Co-founder and Chairman Emeritus of Thermo Electron Corporation John Hatsopoulos, Chief Executive Officer Co-founder and retired President and Vice Chairman of the Board of Thermo Electron Corporation Barry Sanders, President & Chief
Slide 5: Board of Directors (US)
5 5 Board of Directors (US) Dr. George Hatsopoulos, Chairman of the Board John Hatsopoulos, Chief Executive Officer Earl R. Lewis Chairman of the Board, Chief Executive Officer and President of FLIR Systems Inc. (NASDAQ:FLIR) Charles T. Maxwell Senior Energy Analyst with Weeden & Co. Deanna M. Peter
Slide 6: What We Do
6 6 What We Do American DG Energy Inc. is a leading On-Site Utility company, providing highly efficient electricity, heat, hot water, and cooling energy. We target healthcare facilities, multi-family buildings and hotels, and offer a long-term energy solution at a guaranteed discount to retail utili
Slide 7: Our Customer Value Proposition
7 7 Our Customer Value Proposition Guaranteed lower price for energy Typically 10% discount on customer ’ s utility rates No capital or operating costs Only pay for energy used Increased net income Immediate cash flow improvement No staffing, operations and equipment responsibilities Extends custome
Slide 8: Combined Heat & Power (CHP)
8 Combined Heat & Power (CHP) Fuel (natural gas) IN Hot Water & Heat OUT Electricity OUT
Slide 9: Energy Efficiency (~90%)
9 Energy Efficiency (~90%) Source: Company Estimates
Slide 10: Go Green
10 Go Green While $aving Green CHP Reduces CO 2 by 607 tons/year * EPA CHP partner DOE EPA Energy Star efficiency award winner Equivalent to: *Source: EPA CHP calculator on web site; 150 kW, 6,000 Hrs/yr 166 acres 104 cars
Slide 11: Energy Efficiency: Thermal Load
11 Energy Efficiency: Thermal Load Source: Company Estimates Thermal = Domestic Hot Water, Space Heating, Laundry, Banquet, Heating Pools, Process, etc. Made By 150 kW CHP Supplied By Boiler 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MONTHLY H
Slide 12: Energy Efficiency: Electricity Supply
12 Energy Efficiency: Electricity Supply Source: Company Estimates Made By 150 kW CHP Supplied by Utility Grid Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MONTHLY ELECTRICITY DEMAND
Slide 13: Technology Comparison (100kW systems)
13 13 Technology Comparison (100kW systems) COMBINED HEAT & POWER SOLAR PV MICROTURBINE WIND Source: Company Estimates
Slide 14: Technology Comparison (100kW systems)
14 14 Technology Comparison (100kW systems) COMBINED HEAT & POWER SOLAR PV MICROTURBINE WIND Source: Company Estimates
Slide 15: Business at a Glance
15 15 Business at a Glance On-Site Utility (Selling discounted energy) Electricity, heat, hot water and cooling Monthly billing Long term agreements (15 years) Eligible for - carbon credits trading programs Demand response program Own and Operate Energy Systems Combined, heat and power (CHP), chille
Slide 16: Market Sizes for CHP Applications
16 16 Market Sizes for CHP Applications * Sources: 2006/7 ERIC data analysed by BRE; Hotel Data Ltd , July 2009; Sure – FIT High Rise report, June 1, 2007. European Study into high rise dwelling in the EU 27; Overview of CHP – a country by country analysis – COGEN, July 2009; Cogeneration in Central
Slide 17: Tecogen/ADGE Installations
17 Tecogen/ADGE Installations Tecogen: Shipped Over 2,000 Systems Areas where electricity costs exceed $0.12 per kWh: Massachusetts, New Hampshire, Connecticut, New York, New Jersey, California are main targets. Comprise approximately 15% of U.S. commercial power market with electricity revenues in
Slide 18: Typical Customer Buildings
18 Typical Customer Buildings
Slide 19: Sales Strategy
19 19 Sales Strategy On-Site Utility Solution Sell cash flow and net income (not energy and equipment) No capital required by customer No staffing required Keep it simple Executive Sales “C-Level” Fulfill Government and Environmental Mandate On-Site Utility is an easy, cost-effective solution Top 50
Slide 20: Sales Distribution
20 20 Sales Distribution Direct Senior level, sales executives Proven, “C-Level” Sales Partners Experts in targeted, vertical markets Energy consultants Engineering design contractors Key, established suppliers Advisory Board Individuals with access to executives at targeted, vertical markets
Slide 21: New Technology Developments: InVerde 100
PCS Power Conditioning System TecoNet Control System Engine 21 3 Phase AC Power Variable Frequency Neutral AC Power 480/3/60 PF = 1.0 * Neutral Generator/PCS Cooling Engine Heat Recovery Exhaust Heat Exchanger Catalytic Converter Natural Gas Exhaust PMG Engine Coolant Pump Gen/PCSP ump New Technolog
Slide 22: New Technology Developments: Ilios Inc.
22 22 Engine Hot Water Evaporator Coil Natural Gas IN OUT IN New Technology Developments: Ilios Inc. Advanced heating systems for commercial and industrial applications Efficiency = 485,000/238,000 = 204% Heat Exchanger Condenser Compressor 238,000 Btu/hr 485,000 Btu/hr Efficiency = 204%
Slide 23: Competition
23 23 Competition Electric utilities Lack of entrepreneurial drive and several past failures to enter new businesses No operational capabilities Today: ADGE partner Equipment manufacturers - (ENER-G, Cogenco, SenerTec) Lack financing capability Larger systems (footprint and kW) All are potential sup
Slide 24: Revenue Leverage (Example)
24 Annual* Term (15 years) Revenue Leverage (Example) Revenue £225 ,000 £3 ,900,000 Gross margin £67 ,000 £1,160 ,000 Customer savings £25 ,000 £435 ,000 Equipment: 200 kW CHP System ADGE Investment: £275 ,000 ADGE Payback*: 4 years ADGE IRR*: 25% * Estimated
Slide 25: Financial Data – Base*
25 25 Financial Data – Base* *Additional capital will be raised through either debt or equity offering(s).
Slide 26: Financial Data – Upside*
26 26 Financial Data – Upside* *Additional capital will be raised through either debt or equity offering(s).
Slide 27: Europe Advantages
27 27 Europe Advantages Large Market Major cities with high density of target customers (Hotels, Healthcare & Housing) Customers Actively Seeking Energy/Environmentally Friendly Solutions Government mandates Pro-Government Policies Active with energy efficiency and technology Expected to continue Si
Slide 28: Europe Advantages (con’t)
28 28 Europe Advantages (con’t) Capital Crunch fits On-Site Utility Availability for project financing is very difficult Reduced Staffing fits On-Site Utility Favorable Energy Pricing Electricity rates are expected to rise Natural Gas availability and pricing is expected to be stable Minimal Competi
Slide 29: Europe Advantages (con’t)
29 29 Europe Advantages (con’t) United States Experience Head start Available resources Use back office functions such as system monitoring, billing, etc. Experienced and Knowledgeable Workforce Many available candidates Excellent Technology Fit: Inverde 100 kW kW size perfect for customer’s buildin
Slide 30: ADGE Europe - Offering Terms
30 30 ADGE Europe - Offering Terms Entity: ADGE Europe (a subsidiary of American DG Energy Inc.) Offering Amount: $5 million - $10 million Type of Security: Common Stock Shares Outstanding (pre-offering): 10,000,000 American DG Energy Inc.: 9,000,000 Codale Ltd: 1,000,000 Price per Share: TBD Minimu
Slide 31: ADGE - Europe
31 ADGE - Europe American DG Energy Inc. 45 First Avenue Waltham, MA 02451 p: 781.522.6000 f: 781.522.6050 [email protected] www.americandg.com Thank You
American DG Energy — Investor Presentation (June 2010) on 6ix