Roth presentation jason tienor telkonet
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Transcript of Roth presentation jason tienor telkonet
Jason Tienor/CEOMarch 2015
Statements in this presentation may constitute forward-looking statements withinthe meaning of the Private Securities Litigation Reform Act of 1995. Suchstatements involve a number of risks and uncertainties such as competitivefactors, technological development, market demand and the Company's ability toobtain new contracts and accurately estimate net revenue due to variability in size,scope and duration of projects, and internal issues in the sponsoring client. Furtherinformation on potential factors that could affect the Company's financial resultscan be found in the Company's Annual Report on Form 10-K and other periodicreports filed with the Securities and Exchange Commission. Forward-lookingstatements contained herein are made as of the date of this presentation, and weundertake no obligation to revise or update any forward-looking statements inorder to reflect events or circumstances that may arise after the date of thispresentation, unless otherwise required by law.
All Company, brand or product names are registered trademarks or trademarks oftheir respective holders.
Safe Harbor Statement
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• Intelligent Automation (IoT) Company
• Publicly Traded OTCQB:TKOI
• Established History of 17+ Years• Headquartered in Milwaukee, WI• Experienced Team of 107
Company Summary
3
• Successful Turn-Around Story • Development-Stage as Market Leader• Increasing Pace of Revenue & Profitability• New $2 Million Revolving Line-of-Credit• Experienced Management Team• Evolutionary Internet of Things Platform
Company Overview
4
Mature Industry providing10% growth
SharedSynergies
InstallSupportNetwork
Customer-Base
300,000Rooms
Installed
Emerging Industry showing escalating growth
Less than 20%developed
235,000Rooms
Installed
10% Growth
5% Of Market
8M MonthlyUsers
Complimentary Divisions
5
• Numerous Marquee Endorsements• Extensive Networking Expertise• 5% Market Share and Growing
EthoStream Hospitality Network
6
EnergyConsumption
GridQuality
Lost Comfort
Inefficient Performance
Sustainability
Operational Costs
Target Industry Pain
7
EcoSmart Suite
EcoCare
EcoCentral Virtual Engineer
EcoMobile
EcoSmart Platform
8
Energy Savings Operational Savings
Value Savings
EcoSmart Solution
9
$ in millions
$1,160
$700
$215$300
$800$900
$0
$300
$600
$900
$1,200
$1,500
Hospitality Education Healthcare Military Utility Commercial
Research provided by Navigant Research, Allied Market Research, Department of Energy and others.
Significant growth in EcoSmart market segments by 2020
Target Market Opportunity
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Energy Management Systems Market is Expected to Reach $44.4 Billion Globally by 2020
Allied Market Research (March 2, 2015)
Home Energy Management Revenue Is Expected to Total More than $22 Billion from 2014 to 2023
Navigant Research (March 2, 2015)
Recent Headlines
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Commercial
Residential
Product Solution Platform
Onity
Schneider
Ving
Inncom
EcobeeNest
SmartThings
EcoSmartEvolve
Honeywell
Competitive Landscape
12
Technology Expertise Relationships Success+ + =
• Comprehensive Platform
• Consistent Innovation• Software-as-a-Service• Newest Industry
Technology
• Synergistic Divisions• Scalable Solution• Market Research &
Understanding
• Key Franchise Endorsements
• First-Mover Advantages• Utility Participation• Extensive Integrations• Broad Channel
Distribution
• Revenue Growth• Profitability Gain• Gross Margin
Improvement• Increased Shareholder
Value
Competitive Advantages
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Ongoing Development
Intelligent Platform
Automated Monitor
Innovative Alerts
Self-Awareness
Evolutionary Architecture
3rd Party Integration
35%-45%+ Savings
Operational Savings
Equipment Longevity
Increased Comfort
Increased Communication
EcoSmart Benefits
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• 35%-45% Reduction in HVAC Alone• Average Hospitality ROI Less Than 3 Years• Zero Cost Deployment Option with Tier 1 Bank Partner• Reduced Further Through Utility Rebate & Incentives• Simple Upgrade Path• Extensive Competitive Differentiation
EcoSmart Savings
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Engineers, Architects, Developers, ESCO’s
Partner Development & Support
Channel Sales
Expand Channel Growth
Direct Sales
Shrink Sales Cycle
Deepen Market Penetration
Marketing Strategy
16
(in millions) 2013 2014 Change
Growth Q3 - Quarter Q3 - YTD Q3 - Quarter Q3 - YTD Q3 -Year over Year
YTD -Year over Year
Revenue $3.50 $10.20 $4.10 $11.10 16% 8%
Gross Profit $1.80 $4.70 $2.10 $5.30 21% 13%
Operating Income ($0.20) ($1.30) $0.50 $0.00 363% 102%
Net Income ($0.50) ($1.50) $0.30 ($0.20) 180% 88%
EBITDA ($0.10) ($1.00) $0.50 $0.20 595% 124%
Model Q3 - Quarter Q3 - YTD Q3 - Quarter Q3 - YTD Q3 -Year over Year
YTD -Year over Year
Revenue 100% 100% 100% 100% 100% 100%
COGS 49% 54% 48% 52% (1%) (2%)
Gross Profit 51% 46% 52% 48% 1% 2%
SG&A 45% 47% 31% 37% (14%) (10%)
Operating Profit (5%) (12%) 11% 0% 16% 12%
Net Income (14%) (15%) 9% (2%) 23% 13%
EBITDA (3%) (9%) 13% 2% 16% 11%
Financial Overview
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• Revenue of $4.1 million, up 16% from $3.5 million in 3Q13
• Product Revenue of $3.1 million, up 20% from $2.6 million in 3Q13
• Gross Profit of $2.1 million, up 21% from $1.8 million in 3Q13
• Gross Profit Margin of 52%, up from 51% in 3Q13
• SG&A expense of $1.3 million, down 20% from $1.6 million in 3Q13; SG&A declined year-over-year from 45% to 31%
• Continued investment in R&D led to spending increase of 13% from prior year quarter but decreased as a percent of revenue to 8.5% in 3Q14 from 8.7% in 3Q13
• Income from Operations of $457,528 compared to a Loss from Operations of $(171,141) in 3Q13
• Net income of $326,318 for 3Q14 compared to a Net Loss of $(480,478) in 3Q13
• Adjusted EBITDA* of $531,255, compared to $(107,387) in 3Q13
• Significantly strengthened financial position with $2 million revolving line of credit
Recent Financial Highlights – Q3 2014
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Jason TienorCEO
Business & PlatformDevelopment, Strategy,Technology, Wireless
Matt KochCOO
Wireless, Operations,Platform Development
Gerrit ReindersExec. VP of Sales
& MarketingEnergy Efficiency, Channel
Development, ESCO
Gene MushrushCFO
Finance, Cost Containment,Systems Development
Jeff SobieskiCTO
Technology, Platform Development, Engineering,
Business Development
Executive Management Team
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Current State of Company
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• EcoSmart offers a unique value proposition for automated intelligence, efficient energy consumption, return on investment, and user comfort and convenience exemplifying the Internet of Things (IoT) space
• Strong IP position and technological leadership with numerous differentiators
• 2014 demonstrated enormous growth in secondary markets including Education and partnership development
• Growing backlog positioning business for rapid expansion
• Large and growing markets bolstered by secular trends seen through 2020
• Expanding base of highly recognizable channel partners and referral network
• Profitable with significant leverage in financial model remaining
• Experienced management team and accomplished Board of Directors
Key Investment Factors
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