Telkonet provides an intelligent automation platform called EcoSmart that enables customers to save energy, optimize operations, and increase comfort and productivity. The document discusses Telkonet's business, including the growing market opportunity for internet of things solutions, EcoSmart's suite of products and services, major customers and partners, and financial performance. It highlights Telkonet's leadership in the industry and recent growth, product innovations, and strategic partnerships with companies like Samsung.

1. Telkonet, Inc. OTCQB: TKOI 1

2. Telkonet, Inc. OTCQB: TKOI 2
SAFE HARBOR
Statements in this presentation may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements involve a number of risks and
uncertainties such as competitive factors, technological
development, market demand and the Company's ability to obtain
new contracts and accurately estimate net revenue due to variability
in size, scope and duration of projects, and internal issues in the
sponsoring client. Further information on potential factors that could
affect the Company's financial results can be found in the Company's
Annual Report on Form 10-K and other periodic reports filed with the
Securities and Exchange Commission. Forward-looking statements
contained herein are made as of the date of this presentation, and we
undertake no obligation to revise or update any forward-looking
statements in order to reflect events or circumstances that may arise
after the date of this presentation, unless otherwise required by law.
All Company, brand or product names are registered trademarks or
trademarks of their respective holders.

3. Telkonet, Inc. OTCQB: TKOI 3
TELKONET BUSINESS
“We create intelligent environments that enable
our customers to save energy, optimize
operations and increase comfort and
productivity.”

4. Telkonet, Inc. OTCQB: TKOI 4
AGENDA
Market
Telkonet Business
Customers & Partners
Telkonet Advantage
Financial Overview

5. Telkonet, Inc. OTCQB: TKOI 5
The
INTERNET
of THINGS
Anything
Any Device
Anytime
Any Context
Any Place
Anywhere
Anyone
Anybody
Any Service
Any Business
Any Path
Any Network
INTERNET OF THINGS

6. Telkonet, Inc. OTCQB: TKOI 6
THE MARKET OPPORTUNITY
Number of Connected Objects Expected to Reach 50 Billion by 2020
Connected Objects Penetration
60
50
40
30
20
10
0
2012 2013 2014 2015 2016 2017 2018 2019 2020
6%
5%
3%
2%
0%
PenetrationRate(%)
ConnectedObjects,World(bn)
8.7
11.2
14.4
18.2
22.9
28.4
34.8
42.1
50.1
The Internet-of-Things (IoT) is beginning to grow significantly as consumers, business & governments
recognize the benefit of connecting inert devices to the Internet.
Penetration of connected objects in total “things” expected to reach 2.7% in 2020 from 0.6% in 2012.

7. Telkonet, Inc. OTCQB: TKOI 7
MARKET VALUE ANALYSIS
Internet of Things
IoTValue
at Stake:
$14.4T
(2013-2022
10Year Net
PresentValue)
21UseCases
Asset Utilization:
$2.5T
Employee Productivity:
$2.5T
Supply-Chain/Logistics
Efficiency: $2.7T
Improved Customer
Experience: $3.7T
Innovation:
$3.0T
• SG&A and CoGS reduction from improved
business process execution
• Improved capital efficiency
• Improved labor efficiency
• Fewer or more productive man-hours
• Improved process efficiency
• Reduced waste in supply chain
• Improved customer lifetime value
• Additional market share (more customers)
• Improved RD&E speed, reducedTTM
• New business models and new sourced of
revenue
How It Delivers Value —— And How Much Is At Stake

8. Telkonet, Inc. OTCQB: TKOI 8
ECOSMART MARKET BENEFITS
OPERATIONAL EFFICIENCYENERGY MANAGEMENT
ANALYTICSCOMFORT & PRODUCTIVITY
• Savings through HVAC, plug load and lighting
reductions exceeding 45%.
• Increased efficiency through integration with
commercial demand response programs.
• Improved systems utilization and performance
through realtime communication.
• Improved asset utilization through reduced staffing
requirements.
• Extending equipment longevity through minimized
runtime and maximized equipment performance.
• Reduced repair and replacement costs through
realtime monitoring and proactive equipment
maintenance.
• Improved user experience through smart design and
automated environment control.
• Increased productivity through maximized room
design, environment via lighting, temperature and
integrated control.
• Event-based triggers and customized profiles
enabling truly unique experiences for users.
• Expanded value through monitoring, data collection
and trend analysis.
• Improved planning through better facility
understanding and systems integration.
• Improved R&D through increased understanding of
environment and impact.

9. Telkonet, Inc. OTCQB: TKOI 9
AGENDA
Market
Telkonet Business
Customers & Partners
Telkonet Advantage
Financial Overview

10. Telkonet, Inc. OTCQB: TKOI 10
WHY TELKONET
Internet
(https://)
Axxess Industries Server
(Doorbell/DND/MUR
Master Light Switch/Tray Trackers)
SAFLOK Server
(Door Lock/Switch)
BACnet*
(Central Plant Integration)
Wireless
Hardwire
Integration*
EcoCommander
(Gateway Server/PMS Interface)
EcoCentral Virtual Engineer
(Cloud Base Command Center)
Hotel PMS
EcoConnect
(Coordinator)
EcoAirTouch Wireless ThermostatEcoSource
(HVAC Equipment Controller)
Door Lock/Switch*EcoSense
(Occupancy Sensor)
EcoContact
(Balcony Door/Window Sensor)
Tray Tracker* EcoGuard
(Plug Load Control)
EcoSwitch
(Lighting Controller)
Motorized Shades* Master Light Switch* Doorbell/DND/MUR*

11. Telkonet, Inc. OTCQB: TKOI 11
ECOSMART PLATFORM
EcoSmart Suite
EcoCare
EcoCentral
EcoMobile

12. Telkonet, Inc. OTCQB: TKOI 12
ECOSMART SUITE

13. Telkonet, Inc. OTCQB: TKOI 13
ECOCENTRAL
• Complex event/trigger/response
architecture to assist with proactive
environment control.
• Integration capabilities extend to Utility
platform, building automation and property
management systems.
• Cloud-based analytics platform and data
engine for environment monitoring,
efficiency maximization and resource
deployment.
• Comprehensive control over every facet of
the smart environment deployment.
Upload
Data moved to
servers/cloud
Analysis
Data is analyzed to
generate knowledge
Action
A response event
is triggered
Report
Response
is recorded
Event
Something happens
in the physical world
Sensor
H/W that detects
the event
Logging
Event data is
captured

14. Telkonet, Inc. OTCQB: TKOI 14
ECOCARE
• Comprehensive suite of monitoring and support
services providing recurring revenue based on
structured and a la carte selection of service
offering.
• Extensive reporting directing the utilization of
customer resources to improve operational
efficiency and reduce expenses.
• Assistance with Utility integration for participation
in commercial Demand Response programs.
• Customized reporting for facilitation of
performance contracts and energy saving
agreements for partners such as Trane, JCI and
Ameresco.

15. Telkonet, Inc. OTCQB: TKOI 15
ECOMOBILE
• Group of mobile applications designed for partner,
customer and end user improving deployment,
monitoring, control and usability.
• Geofencing utilizes smart device (phone/tablet)
location to intelligently trigger actions within the
smart environment.
• Intuitive smart device interface allows platform
control from anywhere within the smart environment
or remotely.
• Capable of whole home / smart environment
management.
• Intelligent API (Application Programming Interface)
enables integration within third party applications
such as hospitality loyalty apps.
• Next generation features enable greater user
involvement, gamification and analytics.

16. Telkonet, Inc. OTCQB: TKOI 16
DEVELOPMENT ROADMAP
PLATFORM EXPANSIONMOBILE
ANALYTICSKEY INTEGRATIONS
• Telkonet’s mobile strategy includes multiple dedicated
native applications designed to make deployment,
management and utilization of smart environments
more cost effective and efficient.
• Telkonet’s newest app, EcoManage, enables end
consumers in multiple markets including Consumer,
Education, Hospitality and others to manage their
environment from their own device. (BYOD)
• A key feature of the Internet-of-Things is its openness.
Through following industry standards, EcoSmart’s
complete platform is able to be deployed in almost
any environment.
• The recent release of our innovative and aesthetic
EcoTouch wireless thermostat has separated the
EcoSmart platform from existing offerings.
• Upcoming: EcoSense+, EcoContact+, EcoConnect+
• Integrations are key to maximizing market
penetration.
• Deploying alongside existing building platforms and
within existing smart environments.
• Speaking to other platforms: HomeKit, SmartHome,
BMS/BAS, etc.
• Working with key functions including smart doors,
building systems, utility platforms and other smart
devices.
• The fourth benefit of intelligent automation, analytics
create greater value through data analysis and
trending.
• EcoSmart’s data can provide additional insights that
enable customers to increase their ROI.
• Extending these analytics into external systems and
integrating with accounting platforms provides
additional financing alternatives for customers.

17. Telkonet, Inc. OTCQB: TKOI 17
AGENDA
Market
Telkonet Business
Customers & Partners
Telkonet Advantage
Financial Overview

18. Telkonet, Inc. OTCQB: TKOI 18
HISTORY OF SUCCESS

19. Telkonet, Inc. OTCQB: TKOI 19
CHANNEL STRATEGY
INTERNATIONAL STRATEGYKEY PARTNERSHIPS
CHANNEL GROWTHTARGETED FOCUS
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
Q1/14 Q3/14 Q1/15 Q3/15 Q1/2016
• Recognition of partners whom cover Telkonet’s target
markets is key to our channel growth.
• Influential partners in the space such as OEM’s,
Architects, Integrators and HVAC specialists bring us
closer to our target audience earlier in their buying
cycle.
• Targeting industry leaders brings greater recognition
to the EcoSmart platform.
• A largely untapped area for growth is international
markets.
• Telkonet has developed a plan for resource
deployment and utilization to recognize the greatest
return on investment utilizing channel partners.
• Growth to date internationally has consisted of key
relationships within international markets.
• Key to Telkonet’s growth strategy is recognizing
markets with the largest potential return on
investment.
• In addition to focusing on target markets, utilizing
available funding, rebates and incentives in order to
persuade buyers provides significant leverage.

20. Telkonet, Inc. OTCQB: TKOI 20
AGENDA
Market
Telkonet Business
Customers & Partners
Telkonet Advantage
Financial Overview

21. Telkonet, Inc. OTCQB: TKOI 21
INVESTOR HIGHLIGHTS
• Leading commercial IoT platform - EcoSmart
• EcoSmart growth exceeding 250% during Q1 2016
• Consistently growing services revenue currently
exceeding $4M annually
• Notable channel relationships including JCI,
Samsung, Trane and Carrier
• Enormous emerging market opportunity
• More than 100 million users cross EthoStream
networks annually
KEY STATISTICS (6 months)
Total Revenue $8.9M
Gross Profit Margin % 54%
EBITDA Margin % -3%
EPS $0.00
Share Count ~132M
Market Cap ~$25M
Cash $0.9M
Debt $0.54M
Credit Line ~1M
SALES BY DIVISION (6 Months) PRODUCT SALES BY CHANNEL SALES BY DIVISION (Quarterly)
58%
42%
EthoStream
EcoSmart
$0
$1250000
$2500000
$3750000
$5000000
Q1/14 Q3/14 Q1/15 Q3/15 Q1/16
EthoStream EcoSmart
34%
66%
Direct
Indirect

22. Telkonet, Inc. OTCQB: TKOI 22
INITIATION OF RELATIONSHIPS WITH PROMINENT
FORTUNE 100 PARTNERS
RECENT QUARTERLY EVENTS
INDUSTRY-LEADING INNOVATION AND
DEVELOPMENT
INCREASING GROWTH WITHIN IOT INDUSTRY
RECENT INVESTOR CATALYSTS
• First quarter was the best Q1 and second best overall
quarter in company’s history on almost all KPI’s.
• Ended Q1 with the largest EcoSmart growth rate in
company history.
• Q2 reflects a contested proxy contest affecting short
term performance.
• EcoTouch’s release introduces innovation including
auto-dimming and control based on light levels.
• EcoMobile introduces first commercial geofencing
application and commercial voice activation.
• EcoSmart technology refresh and release of products
conforming to the needs of consumer and
commercial markets.
• Samsung partnership and technology integration of
HMS.
• Initiation of a strategic partnership to provide controls
for the commercial smart environment in addition to
being selected as the national deployment partner for
Samsung LYNK SINC and HMS platforms.
• Increasing growth of JCI sales and pipeline, UTC
partnership, execution of Trane Master Services
Agreement (MSA) and initiation of Carrier relationship.
25b
15b
0
2014 2017 2019
Estimated number of installed IoT devices by sector
Connected
Home
Smart
Cities
Businesses
In 2018, Nearly Half of the IoT Will Be Business Devices

23. Telkonet, Inc. OTCQB: TKOI 23
RECENT ACHIEVEMENTS
20152014
Q3 Q4 Q1 Q2 Q3 Q4 Q1
EOQ3 Profitable YTD
TKOI sustains
profitable YTD performance
New CFO
John Stark brought
on.
Record Quarter
Telkonet exceeds past
performance on almost
all KPI’s.
Profitable Year
Telkonet recognizes
profitability in three of
past four years.
Preferred Retired
Continued
improvement of
balance sheet.
Q2
Contested Proxy
New Board
members added
through proxy
contest.
EcoMobile
First Telkonet mobile
app introduction.
Samsung Release
Introduction of Telkonet’s
relationship with
Samsung and release of
HMS.
EcoTouch Release
Telkonet introduces
evolutionary wireless
thermostat.
• Completion of contract engineering and white labeled product for Fortune 100 HVAC firm.
• Introduction of Hospitality integrated mobile app and voice activation control.
• Complete initial release of comprehensive EcoSmart Platform.
• Completed balance sheet restructuring and removal of audit opinion.
• Release of next generation wireless thermostat control (EcoTouch).
• Execution of landmark agreements with Samsung and Trane.
• Recognized record quarterly revenue growth of EcoSmart of 80%.
2016
Record Quarter
Best Q1 & second best
overall performance in
company history.
Largest EcoSmart Growth
252% year over year
EcoSmart growth.

24. Telkonet, Inc. OTCQB: TKOI 24
DEDICATED LEADERSHIP TEAM
Jason L. Tienor
Chief Executive Officer
• 18 years in technology
• Bachelors in MIS & Marketing -
University of Wisconsin - Oshkosh
• MBA - Marquette University
• Entrepreneurial Focus
John Stark
Chief Financial Officer
• Recently joined the Telkonet team
• Experienced as Lawyer, Debt Investor,
Asset Manager & Investment Banker
• AB - Wabash College
• JB - Vanderbilt University School of Law
• FINRA Licenses, Series 63 & 79
Matthew J. Koch
Chief Operations Officer
• 9 year veteran with Telkonet and 3
years prior with EthoStream
• Bachelors in MCS - University of
Wisconsin - Whitewater
• Extensive Networking Background
Jeffrey J. Sobieski
Chief Technical Officer
• Significant Expertise in Software &
Hardware Development
• Bachelor of Science in Computer
Science - University of Wisconsin -
Oshkosh
• MBA - Marquette University
• Entrepreneurial Focus
Chad Burow
Director of Sales & Marketing
• Specialized in Channel
Development
• Broad Sales & Marketing
Expertise Spanning Multiple
Verticals
• Concentration on Market Analysis
& Development

25. Telkonet, Inc. OTCQB: TKOI 25
AGENDA
Market
Telkonet Business
Customers & Partners
Telkonet Advantage
Financial Overview

26. Telkonet, Inc. OTCQB: TKOI 26
SECOND QUARTER & YEAR-TO-DATE SUMMARY
(in millions) 2015 2016 Change
Growth Q2 Q2-YTD Q2 Q2-YTD
Q2 -
Year over Year
YTD -
Year over Year
Revenue $4,755,474.00 $7,330,020.00 $4,269,369.00 $8,893,475.00 -$486,105.00 $1,563,455.00
Gross Profit $2,836,874.00 $4,083,332.00 $2,212,307.00 $4,770,924.00 -$624,567.00 $687,592.00
Operating Expenses $2,247,577.00 $4,165,872.00 $2,818,991.00 $5,189,353.00 $571,414.00 $1,023,481.00
Operating Income $589,297.00 -$82,540.00 -$606,684.00 -$418,429.00 -$1,195,981.00 -$335,889.00
Net Income $523,511.00 -$220,567.00 -$671,626.00 -$551,504.00 -$1,195,137.00 -$330,937.00
EBITDA $661,406.00 $63,074.00 -$534,507.00 -$273,667.00 -$1,195,913.00 -$336,741.00
EPS $0.00 -$0.01 $0.00 $0.00 $0.00 $0.01
Q2 Q2-YTD Q2 Q2-YTD
Q2 -
Year over Year
YTD -
Year over Year
COGS 40% 44% 48% 46% 8% 2%
Gross Profit 60% 56% 52% 54% -8% -2%
SG&A 38% 45% 54% 47% 16% 2%
Operating Profit 12% -1% -14% -5% -26% -4%
Net Income 11% -3% -16% -6% -27% -3%
EBITDA 14% 1% -13% -3% -27% -4%

27. Telkonet, Inc. OTCQB: TKOI 27
REVENUE BY QUARTER
$0
$750,000
$1,500,000
$2,250,000
$3,000,000
Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016
EthoStream EcoSmart
EcoSmart has grown to become the majority of Telkonet’s revenue stream.
Historic revenues were driven by
EthoStream, specifically the
recurring revenue, catering to one
target market: Hospitality.
• Market awareness has spawned
the demand for smart
technologies and energy
efficiency.
• This education has impacted
commercial and consumer
markets.
Telkonet’s success is driven by:
• Extensive innovation
• Comprehensive platform
capable of integration
• Early market penetration
• Key partnerships

28. Telkonet, Inc. OTCQB: TKOI 28
SALES BY REVENUE LINE
$0
$750,000
$1,500,000
$2,250,000
$3,000,000
Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016
EthoStream Product EthoStream Recurring EcoSmart Product EcoSmart Recurring
• EcoSmart participates in an
emerging industry and has
garnered an early lead in the
Hospitality market.
• The Internet-of-Things (IoT) has
grown extensively in the last two
years and is projected to
continue.
Telkonet’s margin hierarchy:
• EthoStream Support
• EcoCare
• EcoSmart Sales
• EthoStream Sales
Recurring revenues continue to
provide strong margin protection
and through the growth of our
EcoCare services, Telkonet
expects to see sustained gross
margins.

29. Telkonet, Inc. OTCQB: TKOI 29
BALANCE SHEET & CASH FLOW
Balance Sheet Cash Flow
(in millions) Q2 2015 Q2 2016 Q3 - Quarter Q2 2015 Q2 2016
Cash $ 0.862 $ 0.900 Net (loss) Income $ 0.523 $ (0.672)
Total Inventory $ 0.937 $ 1.100 EBITDA $ 0.661 $ (0.535)
Total Assets $ 11.000 $ 11.600 Cash Flow from Operations $ (0.508) $ (0.326)
Total Debt $ 0.210 $ 0.027 Cash Flow from Investing $ (0.007) $ 0.029
Total Liabilities $ 5.400 $ 5.600 Cash Flow from Financing $ 0.249 $ 0.246

30. Telkonet, Inc. OTCQB: TKOI 30
INVESTOR HIGHLIGHTS
REVENUE GROWTH AND PROFITABILITY *ECOSMART PLATFORM GROWTH *
GROWTH OF IOT INDUSTRYCHANNEL GROWTH
$0
$1,500,000
$3,000,000
$4,500,000
$6,000,000
2012 2013 2014 2015 2016
-$2,250,000
$0
$2,250,000
$4,500,000
$6,750,000
$9,000,000
2012 2013 2014 2015 2016
* Graphs represent comparison for first six months of each year.
• Key relationships include JCI, Samsung, Trane,
UTC, Carrier and IEC.
• Channel sales has grown to 50% of Telkonet’s
current product sales bookings.
• Partners driving expansion into new markets
including MDU/MTU & International.
• Ongoing negotiations include international and
white label.
2000 2005 2010 2015 2020
500 Million
of connected devices
12.5 Billion
of connected devices
25 Billion
of connected devices
50 Billion
of connected devices

31. Telkonet, Inc. OTCQB: TKOI 31
CLOSING
THANK YOU
Jason L. Tienor
jtienor@telkonet.com
414.302.2201