2012 annual shareholder meeting presentation v001 r124do
TRANSCRIPT
Where Energy MattersGene Mushrush, Chief Financial Officer
Where Energy MattersJason Tienor, President & CEO
Forward Looking Statements
2
Certain statements in this presentation, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, raw material price increases and availability, currency fluctuations, prevailing electricity selling prices, adverse changes in general market and industry conditions and other factors listed in the Company's filings with different securities commissions.
Telkonet Staffing
2
Newest Additions:Diane Gamez
HR Generalist
Chris Williams Account Executive
Stephen NelsonSystem Administrator
Don BreestSupport Manager
Kim FowlerInside Account Executive
Stephanie HartzelProject Development Engineer
And numerous other roles...
Telkonet Management Team:Jason L. Tienor
Chief Executive Officer
Richard E. “Gene” MushrushChief Financial Officer
Matthew P. KochChief Operating Officer
Jeffery J. SobieskiChief Technology Officer
Gerrit J. ReindersExecutive VP of Sales and Marketing
Telkonet Board of Directors:William H. Davis
Chairman
Jason L. TienorDirector
Glenn A. GarlandDirector
Tim S. LedwickDirector
Company Profile
2
•Clean Technology company with a focus on intermittently occupied spaces.
•Founded in 1999 with division comprised of multiple acquisitions from 2007.
•Headquartered in Milwaukee, WI with satellite office in Germantown, MD.
•Current staff of 88 employees.
•Major target markets include Hospitality, Education, Military/Government and Healthcare.
•Public access networking and high-speed Internet access provider for over 5 million monthly use-nights in 2300 locations.
•State-of-the-art energy management platform designed for spaces with intermittent occupancy, which integrates with 3rd party control systems (i.e. PMS, BMS, Utility, etc).
•Deployed in several hundred thousand rooms and managed via the EcoCentral cloud-based service platform.
Telkonet Divisions
2
•Designs, develops, installs and supports High-
Speed Internet Access (HSIA) in public access
locations
•2300 Properties in 230,000 rooms
•5 million monthly use-nights
•Largest Hospitality HSIA network in the US
•Products and services include the EGS gateway
line, complete network installations, 24/7 guest
support and an advertising portal
•Installed within several hundred thousand rooms
worldwide
•EcoSmart is the second generation of smart
energy technology from Telkonet released
February of 2011
•EcoSmart incorporates HVAC, lighting and plug
load efficiency, reporting and control
•EcoSmar t has numerous technologica l
advancements over competitive offerings
Operational Overview
2
•Organization• Structure & Growth
•Product Development• EcoRemote, EcoGuard, EcoSwitch and EcoCentral
•Competitive Differentiation• Recovery time, compatibility, cloud management service, ESCO & utility relationships
•Customer Acquisition•Target markets
•Distribution channels, trade partnerships, technology integrations
• Sales and marketing spend
• Strategic partnerships and distribution agreements
•Commercial and international markets
•Recurring Revenues• EcoCare program
•Advertising relationships
Telkonet Highlights
2
•Hospitality•Accor/Motel 6 Franchise Master Contract
•Denihan, Tishman, OTO Development, Benchmark
•Military•West Point Military Academy
• Sheppard Air Force Base Installation
• FLETC Training Center Award
•Education•NYU, UC-Davis, 2 East Coast University Awards
•Healthcare•Healthtrax, Atsite
•Commercial
•Hospitality•Marriott
• Summit Hotel Properties REIT
•OTO Development
•Benchmark Hospitality
•Commercial•Airports
• Libraries
•Municipal Buildings
Telkonet Highlights
2
Telkonet
• Financial Highlights•Decreasing DSO
• Increasing Cash & Equivalents
• Sustained Healthy Gross Margins
•Profitability
EcoSmart Expansion•Rapidly Growing (35% Product Sales)
•Direct & Indirect Channel Growth
•Technology Leadership
• International Expansion
•Key Relationships
•New Market Penetration
• Individual Opportunity Growth
• Sales Mix
EthoStream•Average 10% - 15% Annual Growth
•New Standards Increasing Price Per Room
• Expanding Network Utilization
•Advertising Revenue Opportunity
Financial Overview
2
0$
7,500$
15,000$
22,500$
30,000$
2007 2008 2009 2010 2011 9/30/2012
Operating Expenses
-30,000$
-22,500$
-15,000$
-7,500$
0$
7,500$
2007 2008 2009 2010 2011 9/30/2012
Net Income
in 1,000s
-30,000$
-22,500$
-15,000$
-7,500$
0$
2007 2008 2009 2010 2011 9/30/2012
Operating Income
0$
1,750$
3,500$
5,250$
7,000$
2007 2008 2009 2010 2011 9/30/2012
Gross Margin
0$
4,250$
8,500$
12,750$
17,000$
2007 2008 2009 2010 2011 9/30/2012
Revenue
* 2012 - 9 month year-to-date data
Balance Sheet
2
0$
2,500$
5,000$
7,500$
10,000$
12,500$
15,000$
17,500$
20,000$
12/31/09 12/31/10 12/31/11 9/30/12
Balance Sheet
Total AssetsTotal LiabilitiesTotal Equity
* 2012 - 9 month year-to-date data
Strategic Update
2
•Focus on strategic markets
•Drive growth through continued innovation
•Deploy comprehensive EcoCare service offering aligned to leverage customer relationships
•Continue development of a strategic operations platform to support market growth
•Maximize long-term, sustainable shareholder value:
•Grow revenues organically
•Improve profitability and cash flow by driving efficiency and expanding sales
•Instill sustainable business practices
Thank You
2
Telkonet, Inc.10200 West Innovation DriveSuite #300Milwaukee, Wisconsin 53226
P: +1 414.223.0473F: +1 414.258.8307
www.telkonet.com
Investor [email protected]
P: +1 414.721.7988
Questions
2