2. Forward Looking Statement
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.
3. Company Profile
Telkonet • 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 5.2 million
users monthly at over 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 over 225,000 rooms
worldwide and managed through a cloud-based monitoring network.
Symbol: TKOI
www.telkonet.com
5. 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. The Global Problem
Global energy consumption will increase by
53% between 2008 and 2035.
Source: EIA, International
Energy Outlook 2010
World-wide energy-related carbon dioxide
emissions rise 43% between 2008 and 2035.
in billion metric tons
According to the American Council for an Energy Efficient
Economy, the cost of saving one unit of energy through energy
efficiency is one-fifth the cost required to generate that same
unit of energy.
7. Energy Management Market 2013-2020
The automated, or smart, building
energy management systems
market is to almost quadruple in
size and be worth over $1 billion by
2020
__________________
Worldwide spending on these
services will grow from $291 million
in 2012 to $1.1 billion by 2020
__________________
This represents a compound
annual growth rate of almost 18
percent over that time period
8. The Telkonet Solution
Demonstrate
dedication to the
environment
Maximize customer
satisfaction and
retention
Reduction in energy
use and total cost
Provide comprehensive
insight into every room
10. 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
15. Market Opportunity
Research shows that the US economy has the potential to
reduce annual, non-transportation energy consumption by
roughly 23% by 2020. This would eliminate more than $1.2
trillion in waste.
16. Commercial Energy PatternsEnergy management systems for commercial
buildings will garner $67 billion in investment by 2020.
Source: EIA, 1995 Commercial Building Energy Consumption
Survey
Average use for all
commercial buildings:
12.8 thousand sq. ft.
17. Residential Energy Patterns
The ratepayer-funded energy efficiency program
management industry is rapidly expanding in the United
States. From 2004 through 2009 ratepayer-funded
energy efficiency spending increased from $1.7 billion
to $4.4 billion.
Heating/Cooling
Water Heater
Refrigerator
Dishwasher
Clothes Washer/Dryer
Computer/Monitor
TV/VCR/DVD
Lighting
Other
20. EthoStream HSIA 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 equipment
compatibility
Concerns:
Guest expectations
Ease-of-use
Inconsistent wireless
Disruptive installation
Inadequate support resources
Lack of network control
Out-dated equipment
22. The EthoStream Network
Source: FCC, industry reports. Energy
Economics
• 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
23. 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
25. 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 2012
Total Assets
Total Liabilities
Total Equity
*All numbers given in 000s
26. 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
27. 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 Committee
Chairman
Jason L Tienor
Director
