American DG Energy — Investor Presentation (December 2009)
28 slides from American DG Energy's investor presentation, Dec 9, 2009
Slide 1: Aligning Energy, Environment and Economics
Aligning Energy, Environment and Economics ON-SITE UTILITY 4 = | »yAmerican DG Energy December 2009
Slide 2: Forward Looking Statements
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, economic pe
Slide 3: What We Do
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 builidings, hotels, and offers a long-term energy solution at a guaranteed discount to retail utilit
Slide 4: Our Customer Value Proposition
» » » » » » » Our Customer Value Prop 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 cust
Slide 5: Combined Heat & Power (CHP)
Combined Heat & Power (CHP) sxart © 1 Air Intake Hot Watert Hot Water & Heat OUT Fuel (natural gas) IN Electricity OUT AmericanDG Energy ‘On-Site Utility
Slide 6: CHP Advantages
» » » » » » » CHP Advantages Increased energy efficiency (typically nearly 90% versus less than 33% for the existing power grid) On-Site, Distributed Energy promotes rapid adaptation to changing demand requirements (e.g., weeks, not years to add capacity) By-pass transmission line and substation bot
Slide 7: Energy Efficiency: Thermal Load
Energy Efficiency: Thermal Load MONTHLY HOT WATER & HEATING LOAD therms/mo \ Made By 150 kW CHP. Jan Feb Mar Apr May = Jun. Jul.» Aug)» Sep-Oct. «Ss Nov Dec Thermal = Domestic Hot Water, Space Heating, Laundry, Banquet, Heating Pools, Process, etc. AmericanDG Energy ‘Source: Company Estimates ‘On-Si
Slide 8: Technology Comparison
Technology Comparison COMBINED HEAT & POWER SOLAR PV MICROTURBINE Installed Cost (Investment) Dollar per kilowatt KW) Annual Capacity °% ofthe time operating 22% 295% 16% Annual Gross Profit Annualoperatingmargin per kW Payback ECONOMICBENEFITS AmericanDG Energy ‘Source: Company Estimates ‘On-Site U
Slide 9: Technology Comparison
Technology Comparison os COMBINED HEAT & POWER SOLAR PV MICROTURBINE | Carbonsavings B | tbe peryear of Cozreducton perk 38 8,165 2.268 2 | -Bangtorthe Buck” 3g 52) insperyear of CO2reduction et per of investment at ee ae Oe Si ba EnergyProduced HEAT & POWER POWER HEAT & POWER POWER e | sSpaceRequir
Slide 10: Business at a Glance
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
Slide 11: Background at a Glance
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 $19 billion in market capitalization NYSE:TMO Amerteams tery oTe:apGE ~ ~85"" AMEX:ADGE 1956 2001 2008
Slide 12: Current and Target Market Potential
Current and Target Market Potential* Market Health Care Hotels Recreational Multi-Family Market ites kW (000’s) Prime US Market Z 6,300 * Estimate ONLY Includes MA, NH, CT, CA, NY, NJ * Source: The Market and Technica! Potential for Combined Heat and Power in the Commercial/Institutional Sector; The
Slide 13: Tecogen/ADGE Installations
Tecogen/ADGE Installations Tecogen: Shipped Over 2,000 Systems ADGE: Operating 59 Systems (as of 11/09) 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 powe
Slide 14: Favorable 'Green' Regulatory Environment
» » » Favorable ‘Green’ Regulatory Environment American Recovery and Reinvestment Act of 2009 allocated $16.8B to Office of Energy Efficiency and Renewable Energy (EERE) CHP not subject to extensive government pricing regulations like electric utilities Proven carbon emission reduction US Environmen
Slide 15: Competition
» » » » Competition Electric utilities - (ConEdison, National Grid) Lack of entrepreneurial drive and several past failures to enter new businesses No operational capabilities Today: ADGE partner Equipment manufacturers - (Caterpillar, Capstone Turbine) Lack financing, installation and operation cap
Slide 16: Revenue Drivers
» » » » » » Revenue Drivers 59 systems now up and running 13 systems currently under construction with signed agreements Over 100 proposals now in the field Contracts typically 15-year agreements + Allows ADGE to achieve a payback period of four years and a 25% IRR Business model is 100% recurring +
Slide 17: Scaling Our Business Example
Scaling Our Business Example (Information contained on this slide is not indicative of actual performance and is provided as a hypothetical scenario) $10,000,000 7a0 Syston $90,000,000 $80,000,000 $70,000,000 $60.000.000 $50,000,000 380 Systems: $40,000,000 $30,000,000 200 Systeme $20,000,000 $10,00
Slide 18: Revenue Leverage--Example
Revenue Leverage--Example Revenue $284,000 $4,908,000 Gross margin $84,000 $1,456,000 $32,000 $545,000 Customer savings Equipment: 150 kW CHP System ADGE Investment: $345,000 ADGE Payback*: 4 years ADGE IRR*: 25% * estimated
Slide 19: Revenue Growth
Revenue Growth $8 Revenue Growth | $6.6 $6 - I | a ee) * « | i | I $0 + 007 2008 | yt 2009 mEnergy mTurnkey 9-months 2009 2008 2007 Energy $3,704 $5,140 $3,267 $3,165 Turnkey 772 1439 2,580 g Total Revenue $4,476 $6,579 $5,847 $3,174
Slide 20: Income Statement
Income Statement* 9-months 2009 2008 | 2007 Revenues $4,476 $6,579 $5,847 $3,174 Cost of sales 3.449 5,733 4,584 2,740 Gross profit 1,027 846 1,263 434 Operating expenses 2.169 2.440 2.168 2,287 Loss from operations (1,142) (1,594) (905) (1,853) Other income (expense) (265) (335) (213) (200) Minorit
Slide 21: Non-GAAP Adjusted EBITDA
Non-GAAP Adjusted EBITDA pL csscc9 08 Operating Income $(161,407) $(214,099) Depreciation and Amortization 191,664 158,142 Stock Option Expense 57,103 75,506 Non-GAAP Adjusted EBITDA $87,360 $19,549
Slide 22: Select Balance Sheet Data
Select Balance Sheet Data* Cash & short-term investments $5,489 $2,445 Property, plant & equipment, net 7,562 6,983 Other assets PRA TES) 1,507 Total assets 415,224 $10,935 Current liabilities 1,192 Convertible debentures 5,320 Other liabilities & non controlling interest 843 American DG Energy stoc
Slide 23: Capitalization Table — September 2009
Capitalization Table — September 2009 Common Shares Outstanding Warrants Options Convertible Debenture* Diluted Shares Outstanding *The debentures accrue interest at a rate of 8.0% per annum and are due in April and June of 2011. The conversion price of the debenture in $0.84. AmericanDG Energy ‘On-
Slide 24: What's Next: New Technology Developments
» » » » What’s Next: New Technology Developments Recent Introduction of 100kW inverter * Only engine-based CHP with inverter on the market Next generation engine development Applying hybrid vehicle technology to stationary Improved fuel economy Cleaner operation Advanced emission control technology
Slide 25: Management
» » » » Management Dr. George Hatsopoulos, Chairman of the Board Co-founder and Chairman Emeritus of Thermo Electron Corporation John Hatsopoulos, Chief Executive Officer Co-founder of Thermo Electron Corporation and retired President and Vice Chairman of the Barry Sanders, President & Chief Operati
Slide 26: Board of Directors
» » » » » Dr. George Hatsopoulos, Chairman of the Board Board of Directors John Hatsopoulos 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. Alan D. Weinstein Former President of P
Slide 27: Investment Highlights
» » » » » » Investment Highlights Revenue leverage + Recurring revenue and cash flow model Clean tech growth company with experienced leadership + 3-year revenue CAGR: 45% + Strong, established and proven management team Large target alternative energy growth markets * 6,300 MW Potential = $7.5 Bill
Slide 28: Thank You
Thank You AmericanDG Energy On-Site Utility American DG Energy Inc. 45 First Avenue Waltham, MA 02451 p: 781.522.6000 f: 781.522.6050 [email protected] www.americandg.com
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