Telkonet nov2012presentation
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Transcript of Telkonet nov2012presentation
Where Energy MattersJason Tienor, CEO
November 2012
Forward Looking Statement
Certain statements in this presentation, including statements regardingfuture results and performance, are forward-looking statements based oncurrent expectations. The accuracy of such statements is subject to anumber of risks, uncertainties and assumptions that may cause actualresults to differ materially from those projected, including, but not limitedto, the effect of general economic conditions, raw material price increasesand availability, currency fluctuations, prevailing electricity selling prices,adverse changes in general market and industry conditions and otherfactors listed in the Company's filings with different securitiescommissions.
Company ProfileTelkonet • EthoStream • EcoSmart
Clean Technology company with a focus on intermittently occupied spaces
Founded in 1999 • Multiple acquisitions in 2007
Headquartered in Milwaukee, Wisconsin
Current staff of 86 employees
Major target markets include Hospitality, Education, and Military
EthoStream provides public access networking and high-speed Internet access solutions for nearly 5 million
users monthly at 2,400 locations.
EcoSmart offers a state-of-the-art energy management system designed for spaces with intermittent
occupancy, which integrates with other systems (e.g. BAS, PMS). EcoSmart is deployed in several hundred
thousand rooms and managed through a cloud-based monitoring network.
Symbol: TKOIwww.telkonet.com
Overview
Telkonet is an emerging Clean Technology leader with:■ Patented and innovative technology
■ Hospitality, education, military, municipal and government installations
We develop, manufacture and market the innovative EcoSmart Suite■ Revolutionary energy management platform with patented Recovery Time™ technology■ Current energy solutions installed in 200,000+ locations and growing
Telkonet operates the largest hospitality HSIA network in the US■ EthoStream Hospitality Network with 2,350 locations■ 4.2 million monthly users
Our Sales Strategies■ Direct sales■ Channel sales
-6,000$
-4,000$
-2,000$
0$
2,000$
4,000$
6,000$
8,000$
10,000$
12,000$
2009 2010 2011 9/30/2012
Revenue
Gross Margin
Operating Expenses
Operating Income (Loss)
Net Income (Loss)
Financial Overview
*All numbers given in 000’s
This data represents 9months (YTD) only.
New Management
The Global problem
Global energy consumption will increase by53% between 2008 and 2035.
Source: EIA, InternationalEnergy Outlook 2010
World-wide energy-related carbon dioxideemissions rise 43% between 2008 and 2035.
in billion metric tons
According to the American Council for an Energy EfficientEconomy, the cost of saving one unit of energy through energyefficiency is one-fifth the cost required to generate that sameunit of energy.
The Telkonet Solution
Demonstratededication to theenvironment
Maximize customersatisfaction andretention
Reduction in energyuse and total cost
Provide comprehensiveinsight into every room
Our Technology
Recovery Time™Patented Technology
EcoCentralWeb-Based Management
Smart GridLoad Shedding Events
Intermittently Occupied Spaces?Solution: Control the Unexpected with EcoSmart
What are intermittently occupied spaces?
Hotel rooms, college dormitories, military barracks, assisted living facilities, K-12 classrooms, etc.
Why is energy management a solution for intermittently occupied spaces?
‐Manually monitoring room temperature is practically impossible:
‐Requires full participation of staff
‐Requires room checks and occupant disruption
‐Typically affects lighting and appliances as well
EcoSmart saves 20-40% of energy consumption and runtime.
Use occupancy-based energy management to control:
HVAC Plug loads Appliances
Lighting Shades
A networked energy management system provides control through a web-based platform.
Demand Response Ready – reduce peak demand by 50% or more
Minimal impact on comfort and productivity
Designed for simplicity.
Flexible wired or wireless installation, simple to program and commission
Built-in measurement and verification
The EcoSmart Suite
EcoInsight
EcoSwitch EcoGuard EcoContactEcoWaveEcoView
EcoConnect EcoCommander
The EcoSmart Cloud Architecture
EcoSmart In-Room Operation
EcoSmart Key Customers
Market OpportunityResearch shows that the US economy has the potential toreduce annual, non-transportation energy consumption byroughly 23% by 2020. This would eliminate more than $1.2trillion in waste.
Commercial Energy Patterns Energy management systems for commercialbuildings will garner $67 billion in investment by 2020.
Source: EIA, 1995 Commercial Building Energy ConsumptionSurvey
Average use for allcommercial buildings:
12.8 thousand sq. ft.
Residential Energy PatternsThe ratepayer-funded energy efficiency programmanagement industry is rapidly expanding in the UnitedStates. From 2004 through 2009 ratepayer-fundedenergy efficiency spending increased from $1.7 billionto $4.4 billion.
Heating/Cooling
Water Heater
Refrigerator
Dishwasher
Clothes Washer/Dryer
Computer/Monitor
TV/VCR/DVD
Lighting
Other
EcoSmart’s Competitive Landscape
In-roomEnergy
Management
BuildingsCloudServices
Smart GridIntegration andDeployment
EcoSmart’s Competitive Advantages
EcoCentral
Cloud-enabledcontroland reporting
Integration with 3rdparty systems (open
standards)
Compatibility
Recovery TimeTechnology
The EthoStream Network
Solutions:
Largest HSIA Network in the US
220,000 rooms, 2350 hotels, 4.2 million monthly users
EGS Pro gateway servers
Simple, proactive network management tools
Ubiquitous property coverage
Property-wide, uninterrupted HSIA service
2-5 day seamless installation process
Minimal new wiring with no structural intrusion
24/7, 365 in-house support center
US based, knowledgable, certified support staff
Superior bandwidth management tools
Review bandwidth use to proactively accommodate guests’needs
Future-proof connectivity
Proactive updates ensure the highest level of equipmentcompatibility
Concerns:
Guest expectations
Ease-of-use
Inconsistent wireless
Disruptive installation
Inadequate support resources
Lack of network control
Out-dated equipment
The EthoStream Key Customers
The EthoStream Network
Source: FCC, industry reports. EnergyEconomics
• Higher demands in user’s wireless expectations• Growth of wireless and mobile bandwidth consumption• Changes in wireless standards to meet the rise in
bandwidth use• New technology requires constant access• The need to ease 3G and 4G mobile data congestion
The Telkonet Pipeline
Projects (current/complete)
Trane → Ft. Drum Military Base
Noresco → West Point Military Acadamy
NYU Dormitory Facilities
Boyd Gaming Casino
Crown Plaza Times Square
UC Davis Dormitory Facilities
Denihan Hospitality Group
Waikiki Hyatt Place
Motel 6 & Studio 6
Suite Control
Recurring → ~$4M
Net Income
-$30,000
-$20,000
-$10,000
$0
$10,000
2008 2009 2010 2011 9/30/2012
Gross Margin
$0
$2,000
$4,000
$6,000
$8,000
2008 2009 2010 2011 9/30/2012
Revenue
$0
$5,000
$10,000
$15,000
$20,000
2008 2009 2010 2011 9/30/2012
Financial Summary
Operating Expenses
$0
$5,000
$10,000
$15,000
$20,000
$25,000
2008 2009 2010 2011 9/30/2012
Operating Income
-$16,000
-$14,000
-$12,000
-$10,000
-$8,000
-$6,000
-$4,000
-$2,000
$0
2008 2009 2010 2011 9/30/2012
Balance Sheet Balance Sheet
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
12/31/09 12/31/10 12/31/11 9/30/2012
Total Assets
Total Liabilities
Total Equity
*All numbers given in 000s
Anticipated Milestones
New product introductions
Create larger residential
demographic
Further Utility integration
Exceed financial goals
Channel sales
Full-service markets
Expanded HSIA services
Further platform integration
Increased international focus
Market expansion
Our Leadership
Telkonet Management Team:
Jason L. Tienor
Chief Executive Officer
Richard E. “Gene” Mushrush
Chief Financial Officer
Jeffery J. Sobieski
Chief Technology Officer
Gerrit Reinders
Executive VP of Sales and Marketing
Matthew Koch
Chief Operating Officer
Telkonet Board of Directors:
William H. Davis
Chairman of the Board
Glenn A. Garland
Director
Timothy S. Ledwick
Director, Audit CommitteeChairman
Jason L Tienor
Director
Organization & Facility
Sales
Support
SystemAdmins
Administration /Finance
Engineering
Executives
Installers
Production /Warehouse
10200 Innovation DriveSuite #300Milwaukee, WI 53226(414) 223-0473
TKOI Market Share Data
Telkonet, Inc.
■ Ticker Symbol: TKOI
■ Price: 11/1/52012: $0.16
■ 52-week High: $0.23
■ 52-week Low: $0.12
Capitalization (as of 11/07/12)
■ Outstanding Shares: 108,103, 001
■ Fully Diluted Shares: 109,560,998
■ Management Holding: approx. 4%
■ Average Daily Volume: 142,226
Option and Warrants (as of 11/7/12)
■ Options: 980,642
■ Ave. Weighted Exercise Price: $0.79
■ Warrants: 10,620,998
■ Ave. Weighted Exercise Price: $0.46