2G Energy AG

Investor Presentation • Nov 28, 2024

26 Energy AG

Continuous growth for a decade! Well prepared for accelerated growth!

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

2G at a glance.

• Foundation:
• Market Cap:
• Free float:
• Net sales 2023:
• Net sales 2024e:
• EBIT 2024e:
• Net sales 2025e:
• Equity ratio:
• Employees:

1995 - HQ in Heek, NRW, Northwest of Germany
app. 400 Mio. Euro
app. $55 \%$
365.1 Mio. Euro (thereof 200 ME machines, 165 ME service + parts)
360 to 390 Mio. Euro
8.5\% - 10.0\% EBIT
430 to 450 Mio. Euro (CAGR: 11,2\% last 10 years)
above 50\%
app. 900 worldwide

2G at a glance.

- Foreign subsidiaries:

8 Internat. Sale/Service comp.: G7 (USA, CA, UK, F, I, E) + Pol + NL
1 Competence centre: NRGTEQ B.V. in NL

• Importance to the (European) energy supply:
• above 7'000 CHP plants in more than 50 countries
• app. 2 GW actual capacity
  (compared to average German nuclear plant of app. 1.3 GW)
• Competitive situation:
• Germany: General market leader (in our engine class)
• Hz: Technological leader (worldwide)

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

Key products - Machines.

Combined Heat \& Power
Synergies:
R\&D, sales,
project management,
procurement,
production.

Heat pump.
Heat only/Thermal energy

Demand Response.
Power only

Key products - Combined Heat and Power - CHP.

Energie \& Management

from 01.10.2024 - Cover story
Speyer's head of municipal utilities Bühring concluded by emphasizing that renewable energy sources must be sensibly backed up by decentralized CHP plants.

It simply wouldn't wok without CHP.

CHP plants should therefore be consistently included in the energy infrastructure, [...]
Only then could the further expansion and development of a "green" heat supply succeed.

CHP: From grey workhorse to green team player.

Key products - Heat only - Heat Pump.

Heat pump.
Heat only/Thermal energy

Future expectations:

• Germany:
• 2026:
• 2028:
• Rest of Europe:
• Future sales focus:
• Prerequisite:
• Ramp-up:
• 2025:
• 2027:
• Long term:

Municipal heat planning mandatory
Large cities
Small cities
Main instrument for saving fossil energy
Germany (via 2G) + Benelux (via NRGTEQ),
EU| RoW opportunistically
Full industrialization,
integration into the product configurator
start of marketing in 2024
< 10 Mio. Euro (order intake)
45 Mio. Euro (order intake)
Comparable to CHP in G20 countries

High-capacity heat pump: Highly cost-effective producer of $\mathbf{C O 2}$-free heat.

Key products - Heat only - Heat Pump.

Heat pump.
Heat only/Thermal energy

October 19, 2023 | Heat pumps are a central component in the shift towards sustainable heating. Due to economies of scale, large-scale heat pumps supplying several residential buildings in settlements or neighborhoods prove to be an efficient decarbonization option.

High-capacity heat pump: Highly cost-effective producer of $\mathbf{C O}_{2}$-free heat.

Key products - Power only - Demand Response.

Future expectations:

Demand Response.

Power only

• Positioning:
• Between a CHP power plant and an emergency power generator
• Annual operating hours:
• Emergency power generator: app. up to 500 hours
• Demand response:
  app. 500 - 2'000 hours
• CHP:
  above 2'000 hours
• Ramp-up:
• Main market:
  USA
• 2025:
• 2026:

First installation with launch partner
Full market launch

Demand Response: The fast and cost-effective temp power.

Key products - Power only - Demand Response.

Future
expectations:

Demand Response.

Power only

UnS. Natural Gas Generator Market

by power rating, 2020 - 2030 (USD Billion)

Natural disasters and severe weather conditions due to climate change have resulted in extended power outages, driving demand for backup power as a necessary amenity in commercial, residential, and industrial buildings. The abundance of natural gas in the United States, combined with the well-developed infrastructure for transporting it within the country, has fueled the demand for generator sets in the United States. Gas generator sets are becoming more popular than diesel generator sets due to the country's shale gas revolution, and this trend is expected to continue in the coming years.

Demand Response: The fast and cost-effective temp power.

Key products - Green Cube.

Heat pump.
Heat only/Thermal energy

CHP.
Combined Heat \& Power

Green Cube.

Decoupled Heat \& Power

• Combined with storage facilities.
• Tailored to the individual needs for local authorities and private investors.
• Locally available environmental heat sources, existing wind and solar parks, bioenergy, industrial waste heat ... are included.
• Modularly configurable standard product.
• Containerised solutions as turnkey projects.

2G as solution provider.

Key products - Machines + Service.

Key products - Service.

Main aspects:

• Constantly growing revenues with service and parts
• Downside potentials:
• Lower annual operating hours reduce the need for servicing
  

Service.
Worldwide

• Upside potentials:
• Increasing number of full maintenance contracts due to
• More professional management of sales potential
• Growing dependence of system owners on the availability of their power plants
• Increasing sale of own design parts due to
• Growing share of own engines (instead of purchased engines)
• More and more self-designed components and wearing parts
• Supplementing and/or replacing partner service personnel in foreign markets with our own staff
• Cost effectiveness:
• Implementation of a comprehensive ERP system specifically for service
• Increasing use of artificial intelligence for predictive maintenance

Service: Reliable and crisis-resistant cash flows over time.

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

Order intake Q3 2024 by region.

Order intake Q3 2024	2024		2023		Change
	in MEUR	in \%	in MEUR	in \%	in MEUR	in \%
Germany	21.0	$28 \%$	26.1	$62 \%$	-5.1	$-19 \%$
Rest of Europe	41.9	$56 \%$	6.0	$14 \%$	+35.9	$+598 \%$
North America	10.5	$8 \%$	1.4	$3 \%$	+9.1	$+650 \%$
Asia/Australia	4.4	$6 \%$	1.2	$3 \%$	+3.2	$+267 \%$
Rest of the world	2.5	$3 \%$	7.3	$18 \%$	-4.8	$-66 \%$
Total	$\mathbf{8 0 . 4}$	$\mathbf{1 0 0 \%}$	$\mathbf{4 2 . 0}$	$\mathbf{1 0 0 \%}$	$\mathbf{+ 3 8 . 4}$	$\mathbf{+ 9 1 \%}$

Order intake Q3 2024 by region - Rest of Europe.

Order intake Q3 2024	2024		2023		Change
	in MEUR	in \%	in MEUR	in \%	in MEUR	in \%
Rest of Europe	41.9	$56 \%$	6.0	$14 \%$	+35.9	$+598 \%$
Total	$\mathbf{8 0 . 4}$	$\mathbf{1 0 0 \%}$	$\mathbf{4 2 . 0}$	$\mathbf{1 0 0 \%}$	$\mathbf{+ 3 8 . 4}$	$\mathbf{+ 9 1 \%}$

Rest of Europe - Eastern Europe

• The large-scale destruction of energy infrastructure by the Russian army is having an impact on private and public decision makers in Eastern Europe.
• CHP units demonstrate some of their major advantages: rapid availability, robust operating mode, relative independence from other infrastructure.
• Various project partners have placed some substantial orders in Q3.
• We expect order intake to remain strong.

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

Order intake Q3 2024 by region - North America.

Order intake Q3 2024	2024		2023		Change
	in MEUR	in \%	in MEUR	in \%	in MEUR	in \%
North America	10.5	$8 \%$	1.4	$3 \%$	+9.1	+650\%
Total	$\mathbf{8 0 . 4}$	$\mathbf{1 0 0 \%}$	$\mathbf{4 2 . 0}$	$\mathbf{1 0 0 \%}$	$\mathbf{+ 3 8 . 4}$	$\mathbf{+ 9 1 \%}$

North America

• The market continues to be characterized by large-volume projects.
• Inflation Reduction Act remains a strong driver.
• In Q3, further promising projects were processed but not signed.
• In Q4, strong order intake expected.

Order intake Q3 2024 by region - Major order from the USA.

- Market situation:

More than 1000 so-called skilled nursing facilities ("SNF") are required by law (AB2511) to guarantee a 96 -hour power supply.

- Strategic importance:

SNFs are forced to reconsider their local energy supply, which opens the door for planning (and improving) based on CHP.

- Affected product:

• CHP

- Affected markets:

• California (32 CHP Sept.(Oct. '24, more will follow).
• Other US states could follow this example.
  

December 21, 2023
New Bill AB2511 requires 96 -Hour backup power for Skilled Nursing Facilities. Keep your facility safe by understanding California's New Power Source Requirement.

Who does this apply to?
All Skilled Nursing Facilities (SNFs) across California are facing a significant shift in regulatory requirements with the introduction of Senate Bill AB 2511. A skilled Nursing facility is defined as a health facility that provides skilled nursing care and supportive care to patients whose primary need is for availability of skilled nursing care on an extended basis are subject to Senate Bill AB 2511.

What needs to be done?
Some January 1, 2024, SNFs need to comply with AB 2511, which emphasizes the importance of maintaining an alternative source of power. The definition of "alternative source of power" includes various options like emergency generators, large capacity batteries, and renewable electrical generation facilities. The goal of this is to protect residents' health and safety during extended power outages.

Why is the bill important?
With over a thousand SNFs caring for approximately 400,000 Californians, AB 2511 addresses the vulnerabilities of residents relying on electrical-powered life support systems. The bill aligns regulations with the escalating frequency of power outages due to various like additives, ensuring SNFs can withstand prolonged disruptions.

Possible import duties on the US market.

- Import duties:

Even very high import duties only lead to marginal additional costs in terms of electricity generation costs over the total live cycle.
This is because important costs are largely US-based costs:

• Project planning,
• Customer installation,
• Commissioning,
• Fuel,
• Maintenance,
• Insurance,
• Decommissioning,
• etc.
  

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

2G Energy - Well prepared for accelerated growth.

Sharp rise in electricity consumption. in USA, G7, G20, Europe, Indo-Pacific, RoW

due to AI boom, electromobility, phase-out of fossil heating energy ... on short notice.

• Strategic importance:

Electricity consumption worldwide is rising much faster than new large-scale power plants (gas and nuclear power) will be available.

• Affected product:
• CHP
• Demand response
• Affected markets:
• Worldwide
  

2G Energy - Well prepared for accelerated growth.

Gas engines fill supply gaps.

[Germany's largest energy supplier] RWE plans gas engine power plant at Gundremmingen nuclear power plant site [120 MW].

- Strategic importance:

Gas engine power plants are becoming part of the large-scale energy transition and thus part of the official German power plant strategy ("Krafwerksstrategie").

- Affected product:

• CHP
• Demand Response
• Affected markets:
• Germany
• App. 50 further such power plants are necessary!
  

Electricity supply increasingly insecure.

- Market situation :
Volatility on the electricity market is reflected in specific bottlenecks and noticeable price peaks.

• Strategic importance:

The short-term pressure to act draws attention to projects for reliable electricity generation that can be realized in the short term.

- Affected product:

• CHP
• Affected markets:
• Germany
• EU, G7, G20

FrankfurterRundschau

Unwetter im Norden löst StromEngpässe im Süden aus: Netz nicht auf so viel Windenergie ausgelegt
22.01.2018. 9:47 am

West Landstro.Stromstau
Am Montag riaf ein Netzbetreiber in Boden-Württenberg zum Stromsparen auf. Die Leitungen waren ausgelostet. Ein wiederkehrendes Problem - und das Wetter ist schuld.

Stuttgart - Zum Wochenbeginn hatte der Boden-Württenbergische Netzbetreiber TransmitBW die Bevölkerung zum Stromsparen aufgerufen. Die Maßnahmen sollten zwischen 6 Uhr und 14 Uhr anhalten. Als Grund nannte der Betreiber Stromengpässe in den Leitungen, die jederzeit wieder aufbrechen könnte - schuld es in Norddeutschland alleine ${ }^{22}$.

2C heute

Politik : Deutschland : Stadtwerke Oranienburg: Keine Neuanschlüsse für Strom

Netzagentur sieht Fehlplanung
Oranienburg: Kein Strom für neue Verbraucher
von Antje Küngbach, Potsdam
10.04 .2014 .20:15
$\leftarrow \mid 0$
Wer in Oranienburg bauen will, muss vorerst auf Strom verzichten. Die Stadtwerke können keine Neuanschlüsse bereitstellen. Laut Experten sei das erst der Anfang.

FrankfurterRundschau

Strompreise steigen massiv: Dunkelflaute führt zu Stillstand von Solar- und Windkraft in Deutschland
14.01.2014. 9:47 am

West: Thomas Stotka/Art
Aufgrund einer Dunkelflaute schießen die Strompreise in Deutschland auf Hochstolinde mit der Energiekrise. Nun greift noch das geplante Gesetz zur Sicherung der Stromversorgung in Engposseiten durch das Ende der. Angel-Koalition in Gefahr.

Electricity supply increasingly insecure.

- Market situation :

Power supply in Germany (and Europe?) is not as stable as it seems!
The SAIDI index only records power outages lasting longer than 3 minutes.

• Strategic importance:

Industrial companies invest into back-up power generation capacity.

• Affected product:
• CHP
• Demand response
• Affected markets:
• Germany
  

Importance of biogas confirmed.

The German Federal Minister for Economic Affairs and Climate Protection (Dr. Robert Habeck) acknowledges the importance of biogas in securing base and peak loads.

- Strategic importance:

The further flexibilization of the biogas sector requires a significant expansion of electricity generation capacities using CHP units.

- Affected product:

• CHP
• Affected markets:
• Germany

VDI nachrichten

Biomasse 20. Juni 2024 Von Thomas Gaul Lesezeit: ca. 4 Minuten Biogas-Strategie: Habecks überraschendes Bekenntnis

Bundeswirtschaftsminister Robert Habeck hat ein „umfassendes Biomassepaket" angekündigt. Die gebeutelte Branche hofft auf ein ganzes Bündel an Maßnahmen.

2G Energy - Well prepared for accelerated growth.

Hydrogen economy is developing.

- Market situation :
2G is at the heart of the growing German (and European?) hydrogen center.

- Strategic importance:

The predictable availability of (green) hydrogen remove the „chicken and egg" situation. However, there is a lack of large-scale consumers in particular (steel mills, fertilizer production, mobility), which opens up potentials for $\mathrm{H}_{2}$ power generation based on CHP.

- Affected product:

• CHP
• Affected markets:
• Germany, EU, G7, G20
  

The importance of sewage gas is growing.

- Market situation :

The sewage treatment plants must be given a fourth purification stage and are to become climate-neutral.

- Strategic importance:

The electricity consumption of wastewater treatment plants is increasing significantly. At the same time the utilization of the sewage gases produced through CHP is the most cost-efficient solution.

- Affected product:

• CHP (with 2G as market leader)

- Affected markets:

• EU
  

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

2G is prepared.

Regional as well as solution diversification require adjustments:

• Group structure:

Focusing the on international growth.

• Group-wide IT solution:

Empowerment of the organization/people through the introduction of a Group-wide IT solution.

• Management capacities:

Expansion of management capacities through highly qualified key personnel.

• Modern assembly facilities:

Increasing the efficiency of the production site by investing in additional modern assembly facilities.

2G Is prepared.

Focusing the Group structure on international growth.

• The parent company Group structure is to be transferred to an operational holding structure.

2G Is prepared.

Focusing the Group structure on international growth.

• Clear Group structure enables standardised management, processes and controlling.
• Future sales companies (and possibly production companies) can be easily integrated.

2G Is prepared.

Empowerment of employees through the introduction of a Group-wide IT solution.

Cloud-based solutions enable the rapid and standard-compliant integration of new Group companies.

2G is prepared.

Expansion of management capacities through highly qualified key personnel.

- Darren Jamison:

• Former position:

CEO of Capstone Green Energy, USA

• New position at 2G:

Managing Director, 2G Energy Inc., USA

• First working day at 2G:

01 November 2023

• Key project concerned:
• Internationalisation/Partner Concept
• Affected markets:
• USA

TURDOMACHINERY INTERNATIONAL

CEO Resignation Leaves Vacancy at Capstone Green Energy
Published on: August 16, 2023
James Cook
(1) (1) (1) (1) (1)

Darren Jamison, former CEO of Capstone Green Energy, has stepped away from the company, leaving the interim position to Board Member Robert C. Flexon until a replacement is chosen.

2G Energy - Well prepared for accelerated growth.

2G is prepared.

Expansion of management capacities through highly qualified key personnel.

- Ulrich Brinkmann:

• Former position:

Managing Director Johnson Controls Germany

• New position at 2G:

Sales Director Large Heat Pumps

• First working day at 2G:

01 February 2024

- Key project concerned:

• Internationalisation/Partner Concept
• Innovation
• Affected markets:
• Germany, EU, G7, G20

Cc

SCHMELLERSTEIG WISSENSPORTAL: LÜFTUNG KLINATECHSIR KÄLTETECHSIR

ULRICH BRINKMANN WECHSELT VON JOHNSON CONTROLS

ZU 2G ENERGY

1. Februar 2024 / Dr. Manfred Stahl / kein Kommentar
   

Ulrich Brinkmann (Abb. P. 2G Energy)
Seilt 1. Februar ist Ulrich Brinkmann neuer Vertriebsleiter Großwärmepumpen bei der 2G Energy AG, Heek. Seine Aufgabe ist es, innerhalb des Konzerns den neu gegründeten Bereich Großwärmepumpen strategisch auf- und auszubauen.

Vor seinem Wechsel war Brinkmann (S2) 17 Jahre bei der Johnson Controls Systems \& Service GmbH, Essen, tätig und dort zuletzt verantwortlich für den Vertrieb und die Abwicklung des Bereichs Kälte-, Klimatechnik und Wärmepumpen in Deutschland. Die von 2G Energy selbst hergestellten

2G Energy - Well prepared for accelerated growth.

2G is prepared.

Expansion of management capacities through highly qualified key personnel.

- Pablo Hofelich:

• Former position:

CEO thyssenkrupp Polysius, Beckum/Germany

• New position at 2G:

Chief Sales Officer (CSO)

• First working day at 2G:

01 September 2024

• Key project concerned:
• All products, product ideas, internationalisation, service

- Affected markets:

• Worldwide
  

2G is prepared.

Increasing the efficiency of the production site by investing in additional modern assembly buildings.

Step 2:

Potential for new assembly building

Step 1:

Building permission is applied for
app. $+40 \%$

Agenda

1. 2G at a glance.
2. Key products.
3. Order situation.
4. Situation USA.
5. Further trends.
6. 2G is prepared.
7. Investment case.

Investment case.

• Huge and rapidly growing market potential (Germany, USA, G20)
• Strategic resiliency against political decisions and economic developments due to
• Robust country mix and thus independence from individual markets
• Comprehensive fuel mix ( $\mathrm{H}{2}$ inclusive polluted $\mathrm{H}{2}$, bio-gas, lean-gas, natural gas, gas mixtures, ...)
• Complementary product portfolio:
• CHP
• Large capacity heat pump
• Demand Response
• Strong and growing service business
• Company fit for strong growth (organisational structure, IT set up, management and production capacities)
• Substantial EBIT increase
• ISS Prime rating

Corporate ESG Performance	Prime	PRIME STATUS Awarded to companies with an ESG performance above the sector-specific Prime threshold, which means that they fulfil ambitious absolute performance requirements.
ISS ESG $\gg$

2G Energy - Well prepared for accelerated growth.

Contact details.

Friedrich Pehle CFO
+49 (0) 25689347 - 0
www.2-g.com
info@2-g.com
2G Energy AG
Benzstraße 3
48619 Heek - Deutschland

Calendar.

2024
November 25-26

2025

February 05
February 22
April 01
April 03
April 29
May 12-13
May 22
June 12
September 4
November 24-25

German Equity Forum, Frankfurt

HIT, Hamburg
Announcement of preliminary Net Sales 2024
Preliminary results for FY 2024, 2025 guidance Metzler Small Cap Days, Frankfurt
Consolidated financial statements for FY 2023
Spring Conference, Frankfurt
Q1 key figures and business trends
Ordinary AGM, Ahaus/Germany
Consolidated financial statements for H1 2025
German Equity Forum, Frankfurt