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ENCAVIS AG

Quarterly Report Nov 30, 2016

141_10-q_2016-11-30_2dbb3d5a-44ff-48a8-94fa-4c04ad8487ea.pdf

Quarterly Report

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Interim release Q3

Dear Shareholders, Ladies and Gentlemen,

Over the course of the first nine months of 2016, our company continued to be on a course of sustainable growth.

Revenues increased in comparison to the same period of the previous year to EUR 107.5 million (9M 2015: EUR 94.4 million; +14%); although revenues had been negatively impacted by two effects: wind levels stayed clearly below the longterm average during the reporting period and the decreased exchange rate of the British pound had a negative impact on the revenue generated in the United Kingdom. However, in order to absorb the risks associated with the increased currency volatility, the company has hedged the expected distributions to Capital Stage from projects in British pounds with a fixed exchange rate through the first quarter of 2018. Furthermore, the item 'other expenses' already contained some one-time expenses in connection with the take-over offer for CHORUS Clean Energy AG ("CHORUS"). Operating earnings before interest and taxes (EBIT) thus increased to EUR 57.0 million (9M 2015: EUR 53.5 million; +7%). At EUR 31.1 million operating earnings before taxes (EBT) (9M 2015: EUR 32.3 million) came in as expected. At the same time, cash flow from operating activities increased by more than 30 per cent to EUR 69.8 million (9M 2015: EUR 53.7 million).

In addition to the acquisition of further solar and wind parks, we were able to significantly expand our total generation capacity to more than 1.2 GW, in particular through the takeover of CHORUS in October 2016. Our company thus is number one among the independent power producers (IPP) in the renewable energies sector in Germany and is one of the leading IPPs in Europe. This puts us in an excellent position to actively shape the changes in our industry and to take advantage of the opportunities resulting from them, thereby continuing our successful growth trend.

We successfully concluded the takeover of CHORUS with the capital increase against contributions in kind in mid-October 2016. By appointing Holger Götze to the Management Board of Capital Stage AG as well as expanding the Supervisory Board of the company by Christine Scheel and Peter Heidecker, the adjustment of the boards has already been carried out as planned. On 19 November 2016, Professor Klaus-Dieter Maubach, CEO, announced that he made use of a special right of termination following the takeover of CHORUS and, for private reasons, will be resigning his position as CEO of the company effective on 31 December 2016.

Following the takeover of more than 94 per cent of the issued shares, CHORUS will in future be recognised completely in the consolidated financial statements of Capital Stage. In this context, we published an earnings forecast on 21 November 2016, adjusted accordingly, for the whole of 2016. This forecast covers the operative results of Capital Stage for the full financial year 2016 including the financial results of CHORUS in the fourth quarter of 2016 only.

On this basis, we are expecting an increase in revenue to more than EUR 140 million for the 2016 financial year. We are expecting an increase to more than EUR 104 million in operating EBITDA. The operating EBIT is likely to increase to over EUR 60 million. We expect cash flow from operating activities to come in at more than EUR 98 million. The forecast figures presented were adjusted by one-time special expenses in connection with the takeover in the amount of approximately EUR 6 million in the operating earnings indicators (EBITDA, EBIT) as well as in the amount of approximately EUR 8 million in cash flow from operating activities.

Both companies will not only make us more efficient but also provide us with an enlarged platform for future growth. It will increase our visibility not only on our relevant acquisition markets for PV and wind parks but also on capital markets.

We would be very pleased if you continue with us along this exciting and opportunity-laden path,

Professor Klaus-Dieter Maubach Holger Götze Dr Christoph Husmann CEO COO CFO

Group operating KPIs*

In EUR million 01.01–30.09.2016 01.01–30.09.2015
Revenue 107.5 94.4
EBITDA 85.6 76.3
EBIT 57.0 53.5
EBT 31.1 32.3
EAT 28.4 29.9
Operating cash flow 69.8 53.7
Earnings per share (undiluted, in EUR) 0.36 0.40
30.09.2016 31.12.2015
Equity** 301 262
Liabilities 1,088 1,057
Total assets 1,389 1,319
Equity ratio in % 21.7 19.8

* The Group operating KPIs are based solely on the company's operating profitability and do not take any IFRS-related valuation effects into account.

** Including non-controlling interests in equity.

Note on the quarterly figures

The publication of the results was prepared pursuant to the amended exchange rules for the Frankfurt Stock Exchange from 12 November 2015. This interim statement does not contain a complete interim financial report in accordance with IAS 34 and should therefore only be read in conjunction with the consolidated financial statements as of 31 December 2015 and subsequent publications.

The quarterly figures on the asset, financial and earnings position have been prepared in conformity with International Financial Reporting Standards (IFRS) as applicable within the European Union.

The accounting policies applied are the same as those used for the last year-end consolidated financial statements. We published a detailed description of the methods applied in the notes to the consolidated financial statements for 2015.

Business activities

Business model

Capital Stage AG is listed in the SDAX segment of Deutsche Börse and makes use of the various opportunities offered by the generation of power from renewable energy sources. As an independent operator of environmentally friendly and emission-free power plant capacities, Capital Stage has continued to expand its generation portfolio since 2009 and is Germany's largest independent operator of solar parks.

Its investment strategy focuses on the acquisition of turnkey projects or existing installations in geographic regions characterised by a stable political environment as well as dependable and predictable operating conditions. Capital Stage currently operates 82 solar parks and 11 wind parks with a capacity in excess of 600 MW in Germany, Italy, France and the United Kingdom. As a result of the successful business combination of Capital Stage AG and CHORUS Clean Energy AG in October 2016 – thus after the reporting date for the third quarter – the solar and wind park portfolio was expanded by 55 solar parks and 15 wind parks. Moreover, CHORUS Clean Energy AG manages seven solar parks and 17 wind parks as part of their third-party asset management segment. Additionally, Capital Stage continued to drive the construction planning for 11 solar parks in France by securing a loan in November 2016. Altogether (including third-party management), Capital Stage will in future therefore operate 155 solar parks and 43 wind parks in the countries of Germany, Italy, France, the United Kingdom, Austria, Sweden and Finland with a total generation capacity of more than 1.2 GW. Solar parks and wind parks generate attractive returns and predictable cash flows.

Macroeconomic and industry-specific conditions

Global economic growth stays at previous year's level

The conditions in the global economy remain affected by many uncertainties. In addition to geopolitical tensions, the results of the British Brexit referendum and the US presidential election particularly caused further uncertainty on the markets. As a result, global economic development did not change significantly and, according to current calculations, has stood firm at approximately the level of the previous year. The International Monetary Fund (IMF) forecasts growth of 3.1 per cent (2015: 3.1 per cent) for the global economy in 2016. While the forecast figures improved slightly for most developed economies or at least remained stable, expectations for growth in the United States corrected down by 0.6 percentage points in relation to the IMF forecast from July 2016. In contrast, growth forecasts for the European Economic Area and Germany specifically increased slightly due to strong domestic economic development. The greatest cause for uncertainty in Europe is still the unknown effects of the United Kingdom's departure from the European Union. The IMF now expects growth of 1.7 per cent for the German economy, leaving the IMF slightly below the expectations of the German federal government, which forecasts economic growth of 1.8 per cent for 2016.

Due to the continued weak economic development, the US Federal Reserve and the European Central Bank (ECB) did not adjust their prime interest rates in the third quarter of 2016. On the other hand, the Bank of England reduced its prime rate from 0.5 to 0.25 per cent in light of the increasing stagnation of economic development in the United Kingdom. For the most part, monetary policy therefore remained expansive.

Until now, the hope for more dynamic economic development in the United States and the expectation of a moderate departure from the zero-interest-rate policy had given some tailwind to the US dollar. However, the results of the US presidential election applied the brakes a bit for the US dollar. The continued development of the US currency is now dependent upon which actual economic decisions the new US president makes and which measures he takes. The British pound also experienced a significant drop in value following the Brexit referendum from which it still has not recovered. It remains to be seen which effects the planned withdrawal from the EU will have on the economy of the United Kingdom.

Renewable energy remains a growth market

The expansion of renewable energies and the rejection of fossil fuels and nuclear power as sources of safe, sustainable and climate-friendly energy continued in 2016 and remain a global megatrend. According to figures from Bloomberg New Energy Finance (BNEF), in the first nine months of this year, USD 158.8 billion (EUR 142.3 billion) were invested worldwide in renewable energies and energy-efficient technologies, which represents a decrease of 19.8 per cent compared to the previous year. Analysts from BNEF assume that the investment figures for the year as a whole will be below the 2015 level. In particular, China, Japan and the United States led the way in taking respite from the record-level investment of the previous year. In contrast, Europe remains stable and recorded a decrease of a mere five per cent compared to the same quarter in the previous year. Germany, in particular, went against the grain of this negative development and was 31 per cent higher than in the third quarter of the previous year.

Capital Stage concentrates on the acquisition and operation of turnkey ground-mounted solar parks and wind parks in the core regions of Germany, France, the United Kingdom and Italy.

During the reporting period from 1 January 2016 to 30 September 2016, there were no significant changes compared to the conditions for renewable energies in the relevant core markets of Capital Stage AG described in detail in the consolidated management report for the 2015 financial year and the semi-annual report for 2016.

Course of business and development of the segments

Solarpark Manor Farm

On 17 March 2016, Capital Stage acquired 100 per cent of the shares in a solar park near the town of Horton in the United Kingdom. The solar park has a production capacity of almost 5 MWp and was connected to the grid in December 2015. The seller of the solar park is the project developer F&S solar concept, which is headquartered in Euskirchen, Germany. Capital Stage expects the park to make revenue contributions of approximately TGBP 500 (approx. TEUR 580) from its first year of full operation onwards. The park has a long-term power purchase agreement with the internationally active Danish energytrading company Neas Energy. The total investment volume is around EUR 6 million.

Capital increase carried out

On 20 April 2016, the Management Board of Capital Stage AG, on the basis of authorised capital 2014 and with the approval of the Supervisory Board, decided to increase the company's share capital by up to EUR 7,243,940.00 from EUR 75,483,512.00 to EUR 82,727,452.00 by issuing 7,243,940 new bearer shares for subscription in cash with no subscription rights for existing shareholders. The new shares have dividend rights from 1 January 2015 onwards.

The capital increase was carried out in full at a price of EUR 6.75 per share. The new shares were placed with international institutional investors as well as major shareholders represented on the Supervisory Board and the Management Board of the company. Following the capital increase, share capital amounted to EUR 82,727,452.00, divided into 82,727,452 no-parvalue bearer shares. The capital increase was entered in the commercial register of the Hamburg district court on 22 April 2016. Through the capital increase, the company generated gross proceeds in the amount of EUR 48,896,595. These funds are intended both for the continuation of the growth course via acquisitions on the project level as well as for the sustainable maintenance of a sound balance sheet structure.

Additionally, due to the issue of a dividend to shareholders, share capital increased by EUR 104,568.00 from EUR 82,727,452.00 to EUR 82,832,020.00. This was entered into the commercial register on 1 July 2016.

Acquisition of the German onshore wind park Debstedt

On 19 May 2016, Capital Stage signed a contract for the acquisition of a German onshore wind park near Bremerhaven. The wind park consists of four wind turbines in total and has a production capacity of 18 MW. The wind park was sold by the Bremen-based company Energiekontor AG. The park is currently in its deployment phase and is expected to be fully up and running by the end of December 2016. Additionally, the park benefits from a guaranteed feed-in tariff of EUR 0.0840 per kilowatt-hour for three of the wind turbines and EUR 0.0830 per kilowatt-hour for the remaining turbine. Capital Stage expects the wind park to make revenue contributions of nearly EUR 4 million from its first year of full operation onwards. The total investment volume for the acquisition, including debt, is approximately EUR 40 million. To this point, Capital Stage has acquired a 49 per cent participating interest in the wind park. The acquisition of the remaining 51 per cent has been agreed for the time of the wind park's commissioning.

Acquisition of the British solar park Caddington II

At the end of May 2016, Capital Stage acquired a further British solar park with a generation capacity of around 5 MW. The total volume of the acquisition, including debt, is around EUR 6.3 million (GBP 4.8 million). The park's seller is the Euskirchen-based project developer F&S solar concept (F&S), from whom Capital Stage has already acquired three British solar parks. The solar park newly acquired by Capital Stage is in south-east England in the county of Bedfordshire. The park

has been connected to the British electricity grid since March 2016, and a long-term power purchase agreement was once again concluded with the internationally active Danish energy-trading company Neas Energy. Capital Stage expects the park to make revenue contributions of approximately TGBP 460 (approx. TEUR 530) from its first year of full operation onwards. F&S will initially assume technical management of the park for a period of two years; after this period, it will be transferred to Capital Stage Solar Service GmbH. For the time being, the solar park will be acquired from the company's own funds. It is later planned to be refinanced by means of typical stock financing arrangements.

Announcement of a public voluntary takeover offer for all shares in CHORUS Clean Energy AG

On 30 May 2016, by resolution of the Management Board and Supervisory Board, Capital Stage announced a public voluntary takeover offer for all outstanding shares in CHORUS Clean Energy AG to be exchanged for shares in Capital Stage. This merger will result in one of Europe's largest independent solar and wind energy operators. Hamburg will be the headquarter of the combined company.

With a total capacity of more than 1 GW (without further acquisitions), the combined company will assume an excellent position as an independent operator of solar and wind park facilities. With the takeover, Capital Stage is actively shaping the consolidation of the sector in Germany and Europe and setting the stage for continued growth. The business combination increases the potential for new acquisitions and facilitates the expansion into new geographical markets within and outside Europe, such as North America. Together, the two companies already hold a strong position in their shared core markets of Germany, Italy and France, which are complemented by additional installations in the United Kingdom, Austria, Finland and Sweden. Moreover, the combined company benefits from a balanced and diversified portfolio of wind and solar capacities.

The third-party technical management of the parks in the CHORUS portfolio will be gradually transferred to Capital Stage. At the same time, Capital Stage will make use of its network and many years of experience in renewable energy in order to continue expansion of the asset management for institutional investors.

As part of the exchange offer, CHORUS shareholders received five (5) Capital Stage shares for every three (3) CHORUS shares. The new Capital Stage shares have dividend rights from 1 January 2016 onwards.

The exchange ratio is based on the equity of CHORUS at EUR 11.50 per share as well as the volume-weighted average price of the Capital Stage share from the three months prior to the announcement (according to information from the German Federal Financial Supervisory Authority [BaFin]) in the amount of EUR 6.90. This represents a premium of 36 per cent on top of the volume-weighted average price of CHORUS shares (according to BaFin) over the three months prior to the announcement of the exchange offer of EUR 8.48 per share.

At the extraordinary shareholders' meeting on 8 July 2016 in Hamburg, Capital Stage shareholders approved – by a majority of 99 per cent of share capital present – the issue of new Capital Stage shares against contribution in kind.

On 28 July 2016, Capital Stage published the documentation for the exchange offer as part of the takeover offer for all shares in CHORUS Clean Energy AG which was announced on 30 May 2016. The offer documentation was prepared based on the securities acquisition and takeover act (WpÜG) and its publication was authorised by the German Federal Financial Supervisory Authority (BaFin). From the time of the publication of the bid, CHORUS shareholders could redeem every three (3) CHORUS shares for five (5) Capital Stage shares. The deadline for acceptance was midnight (CET) on 16 September 2016.

The takeover offer was subject to the condition that at least 50 per cent plus one (1) share of the CHORUS shares in circulation be submitted for exchange, as well as the successful entry of Capital Stage's increase in real capital, which was necessary for the exchange, into the commercial register. Even before the publication of the documentation of the offer, Peter Heidecker – supervisory board chairman and largest shareholder of CHORUS – and members of the CHORUS management board had contractually guaranteed Capital Stage AG the acceptance of the exchange offer for their shares (in total, nearly 15 per cent) in CHORUS as well as their voting rights. Additionally, as part of an extraordinary shareholders' meeting on 8 July 2016, the shareholders of Capital Stage approved by clear majority the real capital increase necessary for the exchange. During the so-called fence-sitting phase, a total of 94.42 per cent of shareholders had exchanged their CHORUS shares for Capital Stage shares. CHORUS Clean Energy AG will be included in the Capital Stage AG group of consolidated companies for the first time from October 2016. The acquisition therefore is not reflected in the financial figures as of 30 September 2016.

Acquisition of a German wind park

On 12 July 2016, Capital Stage acquired a wind park with a total capacity of some 6.4 MW. The park is located in Lower Saxony, between Cuxhaven and Wischhafen, and will comprise a total of two Senvion 114 G-3.25 wind turbines with a hub height of 120 metres. The park is a so-called re-powering wind park, which involves replacing old wind park installations with new ones. The park is expected to commence full operation by the end of December 2016. The total investment volume, including debt, is approximately EUR 13.5 million. Due to the re-powering status, long-term data regarding the wind directly on-site – some of which goes back up to ten years – can be used for the revenue calculations. In addition, the wind park benefits from a guaranteed feed-in tariff in the amount of EUR 0.0840 per kilowatt-hour over a period of 20 years, adjusted for the direct marketing expenses. Capital Stage thus expects the newly acquired wind park to make revenue contributions of more than EUR 1.4 million in the first year following commissioning. With this additional wind park acquisition from Bremen-based Energiekontor AG, the two companies are successfully continuing their partnership which was announced in November 2015. Capital Stage had already acquired wind parks from Energiekontor AG in November 2015 and May 2016. A subsidiary of Energiekontor AG will also assume responsibility for the commercial and technical operation of the recently acquired wind park. The acquisition is, as per usual, subject to standard conditions precedent.

Acquisition of an Italian solar park portfolio

In February 2016, Capital Stage signed a contract for the acquisition of a portfolio of Italian solar parks in the Piedmont region. The solar park portfolio was sold by a Spanish project development and operational management company. The solar park portfolio consists of four solar parks and has a capacity of 16.9 MWp. The transaction for two of the four solar parks was completed on 13 July 2016. The acquisition of the remaining two parks is still subject to standard conditions precedent.

Acquisition of an additional German wind park

On 10 August 2016, Capital Stage acquired an additional German wind park with a total capacity of some 7.5 MW. The wind park was sold by the Bremen-based company Energiekontor AG. The park is located in North Rhine-Westphalia near the city of Grevenbroich. The total investment volume for the wind park acquired, including debt, is nearly EUR 20 million. The park is a so-called re-powering wind park, which involves replacing old wind park installations with new ones. The park is expected to commence full operation over the course of the fourth quarter of 2016. The wind park will consist of a total of three General Electric 2.5-120 wind turbines with a hub height of 120 metres. Due to the re-powering status, long-term data regarding the wind directly on-site – some of which goes back up to ten years – can be used for the revenue calculations. In addition, the wind park benefits from a guaranteed feed-in tariff in the amount of EUR 0.0848 per kilowatthour over a period of 20 years. Capital Stage thus expects the newly acquired wind park to make revenue contributions of approximately EUR 2.0 million in the first year following commissioning. To this point, Capital Stage has acquired a 49 per cent participating interest in the wind park. The acquisition of the remaining 51 per cent will be carried out with the commissioning of the wind park. The acquisition is still subject to standard conditions precedent.

Segment development

The business activities of the Group are subject to seasonal influences, leading to fluctuations in revenue and results throughout the course of the year. In terms of the PV Parks segment, the months from April to September tend to generate more revenue than the autumn and winter months.

Actual power fed into the grid by the PV Parks segment in the first nine months of 2016 came to 448,069 MWh (previous year: 405,759 MWh). Of the power fed in, around 31 per cent (previous year: 34 per cent) is attributable to solar parks in Germany, 33 per cent (previous year: 36 per cent) to solar parks in France, 22 per cent (previous year: 19 per cent) to solar parks in Italy and 14 per cent (previous year: 11 per cent) to solar parks in the United Kingdom. In total, the solar park portfolio performed as forecast in the first nine months of 2016.

Actual power fed into the grid by the Wind Parks segment in the first nine months of 2016 came to 138,993 MWh. Of this, around 94 per cent stems from the wind parks in Germany and around 6 per cent from the wind park in Italy. Although the wind park portfolio in Germany performed below expectations, the Italian wind park exceeded forecast figures by around eight per cent.

In almost all cases, operation of the installations ran without disruption.

Operating earnings (non-IFRS)

Explanation of the earnings

Revenue and other income

During the first nine months of 2016, the Group generated revenues of TEUR 107,528 (previous year: TEUR 94,358). This represents an increase of some 14 per cent. Growth came mainly from the expansion of the solar park portfolio in Italy and the United Kingdom as well as expansion of the German wind park portfolio. The PV parks posted revenue growth of TEUR 8,359. While below-average sunshine caused revenue to come in below expectations in the first half of 2016, this was countered by above-average sunshine in the third quarter of 2016. In terms of wind parks, the acquisition of the Lunestedt wind park portfolio in the fourth quarter of 2015 was the main reason for revenue growth of TEUR 5,040. However, due to the wind in the first nine months of 2016 being significantly below the long-term average, revenue generated in the Wind Parks segment is still below the forecast figures. Additionally, the decreased exchange rate of the British pound resulting from the Brexit referendum also had a negative impact on the revenue generated in the United Kingdom. However, in order to absorb the risks associated with the increased currency volatility, the company has hedged the expected distributions to Capital Stage from projects in British pounds with a fixed exchange rate through the first quarter of 2018.

The Group generated other operating income of TEUR 2,398 (previous year: TEUR 935). This includes income from other periods in the amount of TEUR 1,539.

Personnel expenses and other expenses

Operating personnel expenses came to TEUR 4,227 (previous year: TEUR 4,382). Other operating expenses of TEUR 19,422 were incurred (previous year: TEUR 13,990). This mainly consists of costs of TEUR 15,294 for operating solar and wind parks. Other expenses also include TEUR 3,946 in costs of current operations. The increase is primarily due to the solar parks and wind parks newly acquired in 2015 and the first nine months of 2016. Furthermore, the increase is the result of, among other things, consulting costs as part of the acquisition of CHORUS Clean Energy AG which were recognised in part already in the third quarter of 2016.

EBITDA

Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) were TEUR 85,574 in the first nine months of 2016 (previous year: TEUR 76,317), which represents an increase of some 12 per cent. The below-average wind, the decrease in the exchange rate of the British pound and the already-recognised consulting costs in connection with the acquisition of CHORUS Clean Energy AG are reflected here. The EBITDA margin was around 80 per cent. Depreciation and amortisation of TEUR 28,562 (previous year: TEUR 22,819) are primarily depreciation and amortisation on solar and wind parks.

EBIT

Operating earnings before interest and tax (EBIT) totalled TEUR 57,012 (previous year: TEUR 53,499). This represents an EBIT margin of some 53 per cent.

Financial result

Operating financial earnings totalled TEUR –25,943 (previous year: TEUR –21,204). The increase results primarily from the interest cost for the non-recourse loans for the solar and wind parks acquired in the 2015 financial year and the interest on the mezzanine capital issued as part of the partnership with Gothaer Versicherungen, which was higher due to the partial draws carried out during the 2015 financial year.

EBT

Operating earnings before taxes (EBT) therefore came to TEUR 31,069 (previous year: TEUR 32,295). The EBT margin was around 29 per cent. If wind in the first three quarters of 2016 had been at the level of the long-term average, the EBT would have been significantly higher.

Taxes

The consolidated operating income statement shows operating tax expenses of TEUR 2,711 (previous year: TEUR 2,379), mainly for effective tax liabilities in connection with solar and wind parks.

Consolidated earnings

Altogether, this resulted in consolidated operating earnings of TEUR 28,358 (previous year: TEUR 29,916).

Derivation of the non-IFRS adjusted operating KPIs

As outlined in the "Internal management system at Capital Stage" section of the 2015 annual report, Group IFRS accounting is influenced by non-cash measurement effects and the resulting write-downs. In addition, non-cash interest effects and deferred taxes impair a transparent view of the operating earnings situation as per IFRS.

In TEUR 01.01–30.09.2016 01.01–30.09.2015
Revenue 107,528 94,358
Other income 17,299 16,435
Cost of materials –702 –603
Personnel expenses, of which TEUR –128 (previous year: TEUR –127) in share-based
remuneration
–4,355 –4,509
Other expenses –19,830 –13,990
Adjusted for the following effects:
Other non-cash income (primarily profit from business combinations [badwill] and
the reversal of interest rate advantages from subsidised loans [government grants]
as well as non-cash non-period income)
–14,901 –15,501
Other non-operating expenses 408 0
Share-based remuneration 128 127
Adjusted operating EBITDA 85,574 76,317
Depreciation and amortisation –38,621 –29,179
Adjusted for the following effects:
Amortisation of intangible assets (electricity feed-in contracts) acquired as part of
business combinations
8,417 5,101
Depreciation of step-ups on property, plant and equipment acquired as part of
business combinations
1,642 1,260
Adjusted operating EBIT 57,012 53,499
Financial result –40,168 –24,198
Adjusted for the following effects:
Other non-cash interest and similar expenses and income (primarily arising from
effects of currency translation, effective interest rate calculation, swap valuation and
interest cost from subsidised loans [government grants])
14,225 2,994
Adjusted operating EBT 31,069 32,295
Tax expenses –8,203 –5,458
Adjusted for the following effects:
Deferred taxes (non-cash items) 5,492 3,079
Adjusted operating EAT 28,358 29,916

Net assets and financial position

Adjustment to the previous year's figures

The previous year's figures marked with an asterisk (*) were adjusted in accordance with IAS 8 and do not match the figures published in the report for the third quarter of 2015.

Financial position and cash flow

The change in cash and cash equivalents in the reporting period was TEUR 32,781 (previous year: TEUR –5,525*) and is made up as follows:

Cash flow from operating activities amounts to TEUR 69,842 (previous year: TEUR 53,710). This consists largely of cash inflows from the operating business of the solar and wind parks. Also included here are changes in assets and liabilities not attributable to investing or financing activities. In the same period in the previous year, operating cash flow was negatively affected by a tax prepayment in the amount of approximately EUR 2.4 million while, in the same period in 2016, expenses with effect on profit or loss in connection with the takeover of CHORUS Clean Energy AG by Capital Stage in the amount of approximately EUR 1.3 million affected the operating cash flow.

Cash flow from investing activities of TEUR –30,305 (previous year: TEUR –50,955*) consisted mainly of payments for the acquisition of two solar parks in the United Kingdom and two solar parks in Italy. This item still includes payments related to investments in property, plant and equipment for the construction of solar and wind parks in the United Kingdom and Germany.

Cash flow from financing activities of TEUR –6,756 (previous year: TEUR –8,280*) results from the regular loan repayments and interest paid less the loans for newly acquired solar and wind parks paid out after the dates of initial consolidation. In the reporting period, the item contains a capital increase from authorised capital for subscription in cash in the amount of TEUR 48,898.

Assets position

As at 30 September 2016, equity amounted to TEUR 301,367 (31 December 2015: TEUR 261,634). The increase of TEUR 39,733, or 15.2 per cent, stems mainly from the capital increase in the amount of EUR 48.6 million carried out in April 2016. The items recognised directly in equity had the opposite effect. The equity ratio is 21.70 per cent (31 December 2015: 19.84 per cent). Total assets increased from TEUR 1,318,527 as of 31 December 2015 to TEUR 1,388,921.

Liabilities

As of 30 September 2016, the Group has bank and leasing liabilities amounting to TEUR 930,920 (31 December 2015: TEUR 916,552). These loans and leases relate to funding for solar parks and wind parks and the mezzanine capital provided by Gothaer Versicherungen in November 2014. This also includes liabilities from listed notes for the Grid Essence portfolio as well as liabilities from debenture bonds.

As of 30 September 2016, liabilities to non-controlling shareholders amounted to TEUR 11,981.

The value of provisions as of 30 September 2016 amounts to TEUR 17,649 (31 December 2015: TEUR 18,457). This comprises provisions for restoration obligations (TEUR 10,803), tax provisions (TEUR 3,620) and other current provisions (TEUR 3,226).

Trade liabilities decreased from TEUR 11,180 as of 31 December 2015 to TEUR 10,405 as of 30 September 2016.

Events after the balance sheet date

Business combination with CHORUS Clean Energy AG

More than 94 per cent of CHORUS shareholders have opted for the public voluntary takeover offer by Capital Stage within the official deadline for acceptance. On 14 September 2016, before the end of the scheduled acceptance deadline, the minimum acceptance rate of 50 per cent plus one (1) share was reached; in fact, with a result of 84.23 per cent on 16 September 2016, this minimum was significantly exceeded by the end of the scheduled acceptance deadline. At the end of the extended acceptance deadline on 5 October 2016, the acceptance rate was 94.42 per cent.

More than 26 million CHORUS shares in total were therefore submitted for exchange for Capital Stage shares. This means that more than 43 million new Capital Stage shares will be issued from a capital increase based on an exchange ratio of five Capital Stage shares for every three CHORUS shares.

The business combination of Capital Stage and CHORUS results in one of the leading independent operators of solar and wind park facilities in Europe with a total capacity of more than 1 GW, which is enough generation capacity to provide more than 500,000 homes with electricity annually. The takeover strengthens our market position, increases our efficiency and paves the way for additional growth.

CHORUS Clean Energy AG will be included in the Capital Stage group of consolidated companies for the first time from October 2016. Because the acquisition and the initial consolidation of CHORUS took place in October 2016, the takeover of CHORUS is not reflected in the financial figures of the present quarterly report. Its first contribution to revenue in the Capital Stage AG consolidated financial statements as of 31 December 2016 will therefore pertain to the time frame from October to December 2016.

Successful execution of the capital increase against contribution in kind following conclusion of public voluntary takeover offer to the shareholders of CHORUS Clean Energy AG

On 20 October 2016, in connection with the public voluntary takeover offer to the shareholders of CHORUS Clean Energy AG, Capital Stage announced the successful execution of the capital increase against contributions in kind in the amount of approximately EUR 43.6 million through the issue of approximately 43.6 million new shares. The basis for the capital increase is the decision made by the extraordinary shareholders' meeting of Capital Stage from 8 July 2016. The capital increase was entered in the commercial register on 18 October 2016.

As a result of the capital increase, share capital of Capital Stage increased by EUR 43,599,975.00 from EUR 82,832,020.00 to EUR 126,431,995.00 through the issue of 43,599,975 new no-par-value bearer shares, each representing EUR 1.00 of share capital. The contributions in kind comprise 26,159,985 no-par-value bearer shares in CHORUS, each representing EUR 1.00 of share capital. The new shares have dividend rights from the 2016 financial year onwards.

The new shares successfully entered trading on 19 October 2016 on the regulated market (Prime Standard) of the Frankfurt Stock Exchange under the ISIN DE00060950003 or under the SIN 609500.

Changes in the Management and Supervisory Boards of Capital Stage

The Supervisory Board of Capital Stage appointed Holger Götze (born 1969) to the Management Board of Capital Stage with immediate effect in accordance with the business combination agreement of both companies from 30 May 2016. As the chief operating officer (COO) of Capital Stage, Holger Götze is primarily responsible for operations. Simultaneously, Holger Götze resigned his previous position as member and chairman of the Management Board of CHORUS.

Due to the changes to the Articles of Association which were concluded by the Annual General Meeting on 8 July 2016 and entered into the commercial register on 20 October 2016, the Supervisory Board was expanded by two seats to a total of eight members.

The new Supervisory Board positions are occupied by Christine Scheel (born 1956) and Peter Heidecker (born 1958) with immediate effect. Ms Scheel and Mr Heidecker were already approved for this post by a large majority at the extraordinary shareholders' meeting of Capital Stage AG on 8 July 2016.

On 18 November 2016, Professor Klaus-Peter Maubach, chief executive officer (CEO) of Capital Stage AG, informed the Supervisory Board of the company that he will resign his Management Board membership of his own volition as of 31 December 2016. According to Professor Maubach, the reasons for his decision were exclusively private and personal. The Supervisory Board regretfully accepted his decision. It is the wish of the Supervisory Board, and in particular the majority shareholders represented on the Supervisory Board, that Professor Maubach be elected as a further member of the Supervisory Board at the next Annual General Meeting of Capital Stage AG. Professor Maubach has declared himself willing to accept this position.

With Dr Christoph Husmann, whose appointment was extended by three more years through to 30 September 2020, as CFO and Holger Götze, former CEO of CHORUS Clean Energy AG, as COO, the Management Board of the company remains in good hands.

Acquisition of a solar park in the United Kingdom

In October 2016, Capital Stage acquired an additional British solar park with a total capacity of 5 MW. The park has a fixed guaranteed feed-in tariff with a term of 20 years, is already in operation and has been connected to the grid since December 2015. The park lies in south-western England in the county of Devon near the city of Exeter. There is a guaranteed purchase obligation at a feed-in tariff of around GBP 0.1114 (approx. EUR 0.13) per kilowatt-hour. The park was sold by HCE Europe Limited (HCE), a subsidiary of Indian project developer Hindustan Cleanenergy Limited. The total volume of the acquisition, including debt, is around EUR 6.5 million (GBP 5.7 million). Capital Stage expects the park to make revenue contributions of approximately TEUR 700 (TGBP 600) from its first full year of operation. Technical operations will be managed by a subsidiary of HCE for two years. Afterwards, technical management of the park will be transferred to Capital Stage Solar Service GmbH, a wholly owned subsidiary of Capital Stage AG. Capital Stage is responsible for the commercial management. The solar park was initially financed from the company's own funds. It is later planned to be refinanced by means of typical financing on a project level. With the acquisition, the generation capacity of all of Capital Stage's British solar parks increased to nearly 90 MW, thus reaching a share of nine per cent of the entire existing portfolio of the company.

Expansion of the French solar park portfolio by 60 MW by the end of 2017

As previously announced in March 2016, the company will expand its French solar park portfolio by more than 60 MW by the end of 2017. To this end, the company secured the typical financing of the parks on a project level on 17 November 2016 together with its French partner Luxel, a project developer and independent electricity producer headquartered in Pérols in southern France. The concluded financing amounts to around EUR 50 million and has been made available by French banking group Crédit Agricole. As is typical, the financing of the solar parks consists of non-recourse loans on the level of the individual park companies. Luxel is primarily responsible for construction of the parks in close collaboration with Capital Stage. The French solar parks have guaranteed feed-in tariffs with a term of 20 years. Capital Stage expects the first park (5 MW) to be fully up and running by the second quarter of 2017, and the last park (10 MW) by the end of 2017. Contributions to revenue made by the new French parks – from their first full year of operation respectively – will cumulatively amount to EUR 6.2 million. With the addition of the new French parks and without consideration of further acquisitions, the total generation capacity of Capital Stage will exceed the 1.2 GW mark for this time frame.

Opportunities and risks

The material opportunities and risks to which the Capital Stage Group is exposed were described in detail in the consolidated management report for the 2015 financial year as well as in the semi-annual report for 2016. There were no significant changes in this regard during the reporting period.

Forecast

The following statements include forecasts and assumptions that are not certain to materialise. If one or more of these forecasts or assumptions do not materialise, actual results and developments may differ substantially from those outlined.

Underlying economic conditions

Moderate growth in the global economy

In light of the continued uncertainty, the IMF forecasts only slight growth in economic activity in 2017. Altogether, the IMF projects growth in 2017 of 3.4 per cent (2016: 3.1 per cent). For Europe, the IMF even forecasts a slight weakening of economic development from 1.7 per cent this year down to 1.5 per cent in 2017. According to the forecasts of the IMF, the German economy is also expected to grow more slowly in the coming year at 1.4 per cent (2016: 1.7 per cent).

This means that the growth rates in the coming year will likely remain modest, and in Europe even possibly weaken slightly. As a result, the central banks see no significant reasons to adjust the current course of an expansive monetary policy for the beginning of 2017.

The upturn in the US economy expected in 2017 by the IMF could help the US dollar strengthen once again with respect to the euro. The most recent drops in the value of the US dollar in relation to the euro stemming from the results of the US presidential election are not expected to be long-term effects. Nevertheless, uncertainties regarding the future economic policy direction of the United States remain under the new president, Donald Trump.

Underlying conditions on the renewable energy market

Renewable energy remains a worldwide megatrend

The expansion of renewable energies continues to go from strength to strength around the world, the aim being to achieve secure, sustainable and climate-friendly energy supply.

Various international treaties as well as national expansion targets provide a framework for the further development of renewable energies. In the EU, for example, 27 per cent of total energy consumed should stem from renewable sources by 2030. Sustainable and climate-friendly energy policies are also gaining ground in emerging nations and NICs.

Solar Power Europe (SPE), the successor of the European Photovoltaic Industry Association (EPIA), expects that overall global photovoltaic generation capacity will increase sharply over the next few years. In its "optimistic scenario", SPE anticipates that global generation capacity will climb to 540 GW by 2019. In its "pessimistic scenario", it predicts that this figure will rise to just under 400 GW.

The wind power sector will also witness significant expansion over the next few years. According to the forecast of the Global Wind Energy Council (Global Wind Energy Outlook 2016), generation capacity in the wind energy sector may have already exceeded 2,000 GW by 2030, meaning it would be responsible for some 20 per cent of global electricity generation. In 2015, global installed capacity in the wind power sector totalled around 433 GW; during 2016, this number may have increased by some 60 GW based on the expectations of the Global Wind Energy Council.

Overview of expected development

For the most part, the first nine months of the 2016 financial year meet the expectations of Capital Stage, although the revenue trend was slightly negatively affected by below-average wind compared to the medium-term average. Moreover, there were no significant changes to the conditions for the company during the reporting period.

Nevertheless, the successful conclusion of the takeover of more than 94 per cent of the shares of CHORUS Clean Energy ("CHORUS") in October 2016 will be included in the consolidated financial statements of Capital Stage going forward. The complete consolidation will first be recognised in the fourth quarter of 2016, which in the renewable energies sector typically results in less revenue and earnings than other quarters. With this in mind, on 21 November 2016, Capital Stage adjusted its earnings forecast correspondingly for the 2016 financial year. The earnings forecast continues to be based on the existing portfolio of the company at this time and does not factor in any additional acquisitions that may occur in the remainder of the 2016 financial year.

Additionally, the earnings forecast relates to the operating earnings figures and does not contain any IFRS-related valuation effects. Moreover, the forecast figures were adjusted by one-time special expenses in connection with the takeover of CHORUS by Capital Stage AG in the amount of approximately EUR 6 million in the operating earnings indicators (operating EBITDA and operating EBIT) as well as approximately EUR 8 million in cash flow from operating activities.

In EUR million
Revenue >140
Operating EBITDA* >104
Operating EBIT* >60
Cash flow from operating activities* >98

* Operating; contains no IFRS-related, non-cash valuation effects

Other information

Employees

The Group had an average of 46 employees in the period from 1 January to 30 September 2016 (previous year: 73). The average figures were determined using the number of employees at the end of each quarter. On 30 September 2016, apart from the Management Board members, the Group had 39 employees (previous year: 31) at Capital Stage AG and 13 employees (previous year: 15) at Capital Stage Solar Service GmbH. The decrease results primarily from the disposal of Helvetic Energy GmbH, Flurlingen, Switzerland – which employed 32 people as of 30 September 2015 – during the 2015 financial year.

Share-based payment

No options were exercised in the first nine months of the 2016 financial year. A total of 180,000 share options were offered in the same period, of which 150,000 are attributable to the Management Board and 30,000 to the employees. In the reporting period, 220,000 options expired, of which 220,000 were held by employees. In this period, personnel expenses arising from the options programme were recognised in the amount of TEUR 128 (1 January to 30 September 2015: TEUR 127) in the statement of comprehensive income.

Dividends

The Management and Supervisory Boards of Capital Stage AG want the shareholders to share in the success of the company to an appropriate extent. At the annual shareholders' meeting on 25 May 2016, they therefore proposed the payment of a dividend in the amount of EUR 0.18 for each dividend-entitled share. This represents a year-on-year increase of 20 per cent (previous year: EUR 0.15). The Annual General Meeting approved the recommendation of the company by a large majority.

The dividend was also once again offered as an optional dividend which provides the shareholders with the greatest possible freedom to choose.

A portion of the balance sheet profit of EUR 13,587,032.16 for the 2015 financial year was used to pay out the dividend in accordance with the resolution passed at the Annual General Meeting of Capital Stage AG.

The payment of the cash dividend took place on 28 June 2016 and the registration of the shares was received on 6 July 2016.

Assets held for sale and associated liabilities

The disposal of the assets held for sale of Capital Stage Göttingen Photovoltaik GmbH was concluded in the second quarter of 2016.

Related-party disclosures (IAS 24)

Rental contracts at arm's-length terms exist with B&L Holzhafen West GmbH & Co. KG for office space for Capital Stage AG.

Notification requirements

Notifications in accordance with section 21, paragraph 1 or paragraph 1 a, of the Securities Trading Act (WpHG) are shown on the website of Capital Stage AG at http://www.capitalstage.com/investor-relations/stimmrechtsmitteilungen.html.

Condensed consolidated statement of comprehensive income (IFRS)

In TEUR 01.01.–30.09.2016 01.01.–30.09.2015 Q3/2016 Q3/2015
Revenue 107,528 94,358 42,678 41,915
Other income 17,299 16,435 11,840 5,810
Cost of materials –702 –603 –294 –233
Personnel expenses –4,355 –4,509 –1,574 –1,953
of which in share-based remuneration –128 –127 –47 –54
Other expenses –19,830 –13,990 –6,645 –5,554
Earnings before interest, taxes, depreciation and
amortisation (EBITDA)
99,939 91,691 46,005 39,986
Depreciation and amortisation –38,621 –29,179 –13,402 –11,242
Earnings before interest and taxes (EBIT) 61,318 62,513 32,604 28,743
Financial income 961 1,865 510 62
Financial expenses –41,130 –26,062 –12,652 –11,600
Earnings before taxes on income (EBT) 21,150 38,315 20,462 17,205
Taxes on income –8,203 –5,458 –6,851 –181
Earnings from continued operations 12,947 32,857 13,611 17,024
Earnings from discontinued operations 0 –1,450 0 –1,178
Consolidated profit for the period (EAT) 12,947 31,407 13,611 15,846
Items which can be reclassified to profit or loss
Currency translation differences 962 –124 233 116
Hedging of cash flows – effective part of the change in
fair value
–9,230 461 –1,559 –2,410
Income taxes on items which can be reclassified to
profit or loss
2,677 –80 452 689
Consolidated comprehensive income 7,355 31,664 12,738 14,240
Earnings for the period, of which attributable to:
Shareholders of Capital Stage AG 11,844 30,195 13,100 15,345
Non-controlling interests 1,103 1,211 511 501
Comprehensive income, of which attributable to:
Shareholders of Capital Stage AG 6,252 30,452 12,226 13,740
Non-controlling interests 1,103 1,211 511 501
Earnings per share
Average number of shares in circulation in the
reporting period
Undiluted 79,801,917 74,229,397 82,832,000 74,229,397
Diluted 79,758,159 74,271,775 82,724,470 74,271,775
Earnings per share from continued operations,
undiluted (in EUR)
0.15 0.43 0.16 0.22
Earnings per share from discontinued operations,
undiluted (in EUR)
0.00 –0.02 0.00 –0.02
Earnings per share from continued operations, diluted
(in EUR)
0.15 0.43 0.16 0.22
Earnings per share from discontinued operations,
diluted (in EUR)
0.00 –0.02 0.00 –0.02

Condensed consolidated financial statements (IFRS)

Assets in TEUR 30.09.2016 31.12.2015
Intangible assets 188,305 176,250
Goodwill 7,361 7,361
Property, plant and equipment 968,558 958,096
Financial investments 4,536 1
Other accounts receivable 7,916 6,925
Deferred tax assets 34,345 24,666
Total non-current assets 1,211,021 1,173,299
Inventories 491 1,232
Trade receivables 29,004 19,205
Non-financial assets 5,821 11,561
Receivables from income taxes 5,269 7,934
Other current receivables 6,673 5,667
Cash and cash equivalents 130,643 99,368
Cash and cash equivalents 82,650 52,358
Restricted cash and cash equivalents 47,993 47,010
Non-current assets and disposal groups held for sale 0 262
Total current assets 177,900 145,228
Total assets 1,388,921 1,318,527
Equity and liabilities in TEUR 30.09.2016 31.12.2015
Subscribed capital 82,832 75,484
Capital reserve 149,179 108,651
Reserve for equity-settled employee remuneration 554 425
Other reserves –7,786 –2,194
Distributable profit 68,427 71,474
Non-controlling interests 8,162 7,794
Total shareholders' equity 301,367 261,634
Non-current financial liabilities 795,044 848,251
Non-current leasing liabilities 36,199 16,000
Provisions for restoration obligations 10,803 10,155
Other non-current liabilities 11,835 12,627
Deferred tax liabilities 93,547 78,128
Total non-current liabilities 947,428 965,161
Liabilities to non-controlling shareholders 11,981 11,780
Liabilities from income taxes 2,583 2,703
Current financial liabilities 103,327 55,554
Current leasing liabilities 2,303 953
Trade payables 10,405 11,180
Other current debt 9,526 9,561
Total current liabilities 140,126 91,732
Total liabilities 1,388,921 1,318,527

Condensed consolidated cash flow statement (IFRS)

In TEUR 01.01.–30.09.2016 01.01.–30.09.2015
Net profit/loss for the period 12,947 31,407
Cash flow from operating activities 69,842 53,710
Cash flow from investing activities –30,305 –50,955
Cash flow from financing activities –6,756 –8,280
Change in cash and cash equivalents 32,781 –5,525
Changes in cash due to exchange rate changes –1,761 –177
Cash and cash equivalents
As of 01.01.2016 (01.01.2015) 51,629 87,558
As of 30.09.2016 (30.09.2015) 82,649 81,856

Some of the previous year's figures were adjusted in accordance with IAS 8.

Condensed consolidated statement of changes in equity (IFRS)

In TEUR Subscribed capital Capital reserve Currency translation
reserve
Hedge reserve
As of 01.01.2015 73,834 100,802 –130 –2,911
Consolidated comprehensive
income for the period
–124 381
Dividends
Income and expenses
recorded directly in equity
Receipts from fundraising 1,649 7,917
Issue costs –68
Non-controlling interests
As of 30.09.2015 75,483 108,651 –254 –2,530
As of 01.01.2016 75,484 108,651 71 –2,265
Consolidated comprehensive
income for the period
962 –6,554
Dividends
Income and expenses
recorded directly in equity
Receipts from fundraising 7,349 42,207
Issue costs –1,679
As of 30.09.2016 82,832 149,179 1,033 –8,819
In TEUR Reserve for equity-settled
employee remuneration
Distributable profit Non-controlling interests Total
As of 01.01.2015 244 63,829 7,811 243,479
Consolidated comprehensive
income for the period
30,195 1,211 31,663
Dividends –11,090 –539 –11,629
Income and expenses
recorded directly in equity
127 127
Receipts from fundraising 9,566
Issue costs –68
Non-controlling interests 1 1
As of 30.09.2015 371 82,934 8,484 273,140
As of 01.01.2016 425 71,474 7,794 261,633
Consolidated comprehensive
income for the period
11,844 1,103 7,355
Dividends –14,891 –735 –15,626
Income and expenses
recorded directly in equity
128 128
Receipts from fundraising 49,556
Issue costs –1,679
As of 30.09.2016 554 68,427 8,162 301,367

Condensed Group segment reporting (IFRS)

In TEUR Administration PV Parks PV Service
Revenue 0 94,556 2,467
(Previous year's figures) (176) (86,197) (2,343)
Earnings before interest, taxes, depreciation and amortisation (EBITDA) –5,903 94,977 886
(Previous year's figures) (–4,836) (89,410) (1,060)
Earnings before interest and taxes (EBIT) –5,978 62,972 844
(Previous year's figures) (–4,906) (63,945) (1,024)
Financial result –145 –36,269 0
(Previous year's figures) (80) (–22,299) (–15)
Earnings before taxes on income (EBT) –6,123 26,703 844
(Previous year's figures) (–4,827) (41,647) (1,009)
Earnings from continued operations –6,126 24,126 844
(Previous year's figures) (–4,830) (39,400) (1,008)
Earnings from discontinued operations 0 0 0
(Previous year's figures) (0) (0) (0)
Earnings per share from continued operations, undiluted –0.08 0.29 0.01
(Previous year's figures) (–0.07) (0.52) (0.01)
Earnings per share from discontinued operations, undiluted 0.00 0.00 0.00
(Previous year's figures) (0.00) (0.00) (0.00)
Assets including investments 89,854 1,271,205 3,919
(As of 31.12.2015) (218,730) (1,103,614) (3,863)
Capital expenditures (net) –1,716 –24,528 –68
(Previous year's figures) (–115) (–45,069) (–58)
Debt 27,354 1,066,985 1,012
(As of 31.12.2015) (27,343) (1,032,075) (1,665)
In TEUR Wind Parks Financial Investments Reconciliation Total
Revenue 13,375 0 –2,871 107,528
(Previous year's figures) (8,335) (0) (–2,693) (94,358)
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) 10,003 0 –24 99,939
(Previous year's figures) (6,525) (0) (–468) (91,691)
Earnings before interest and taxes (EBIT) 3,493 0 –13 61,318
(Previous year's figures) (2,911) (0) (–461) (62,513)
Financial result –2,911 0 –843 –40,168
(Previous year's figures) (–1,849) (0) (–114) (–24,197)
Earnings before taxes on income (EBT) 582 0 –856 21,150
(Previous year's figures) (1,062) (0) (–576) (38,315)
Earnings from continued operations 545 0 –6,443 12,947
(Previous year's figures) (1,052) (0) (–3,773) (32,857)
Earnings from discontinued operations 0 0 0 0
(Previous year's figures) (0) (–1,450) (0) (–1,450)
Earnings per share from continued operations,
undiluted
0.01 0.00 –0.08 0.15
(Previous year's figures) (0.01) (0.00) (–0.05) (0.43)
Earnings per share from discontinued operations,
undiluted
0.00 0.00 0,00 0,00
(Previous year's figures) (0,00) (–0,02) (0,00) (-0,02)
Assets including investments 247,220 0 –223,277 1,388,921
(As of 31.12.2015) (203,636) (0) (–211,316) (1,318,527)
Capital expenditures (net) –4,018 0 25 –30,305
(Previous year's figures) (–702) (41) (747) (–45,156)
Debt 192,550 0 –200,348 1,087,554
(As of 31.12.2015) (189,798) (0) (–193,988) (1,056,893)

Declaration by the legal representatives

We declare that, to the best of our knowledge and according to the applicable accounting standards, the report for the first three quarters of 2016 as of 30 September 2016, in connection with the annual report for 2015 and the semi-annual financial report for 2016, gives a true and fair view of the net assets and financial and earnings positions of the Group, and that the situation of the Group is presented in a true and fair way as to suitably describe the principal opportunities and risks associated with the expected development of the Group.

Hamburg, November 2016

Management Board

Professor Klaus-Dieter Maubach Holger Götze Dr Christoph Husmann CEO COO CFO

The Capital Stage share

Key financial figures
Listed since 28.07.1998
Subscribed capita EUR 126,431,995
Number of shares 126.43 million
Stock market segment Prime Standard
Dividend 2015 per share EUR 0.15
Dividend 2016 per share EUR 0.18
52-week high EUR 8.97
52-week low EUR 5.31
Share price (11.11.2016) EUR 6.10
Market capitalisation (11.11.2016) EUR 770 million
Indexes SDAX, HASPAX, PPVX
Trading centres Xetra, Frankfurt am Main, Hamburg
ISIN DE 0006095003
Designated Sponsor Oddo Seydler Bank AG
Capital Stage AG financial calendar 2016/2017
Date Financial event
16–18 January 2017 Germany Corporate Conference UniCredit/Kepler Cheuvreux,
Frankfurt

Forward-looking statements and forecasts

This report includes forward-looking statements based on current expectations, assumptions and forecasts by the Management Board and the information available to it. Known or unknown risks, uncertainties and influences may mean that the actual results, the financial position or the company's performance differ from the estimates provided here. We assume no obligation to update the forward-looking statements made in this report.

Differences may arise in percentages and figures quoted in this report due to rounding.

Contact

Capital Stage AG Investor Relations Große Elbstrasse 59 22767 Hamburg, Germany

Tel.: +49 (0)40 378 562 242

Email: [email protected]

Große Elbstraße 59 D-22767 Hamburg

Phone: +49 (0)40 37 85 62 0 Fax: +49 (0)40 37 85 62 129

[email protected] www.capitalstage.com

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