2G Energy AG — Earnings Release 2012

May 3, 2013

News Details

Corporate | 3 May 2013 16:27

2G Energy AG: Preliminary group results of financial year 2012: approx. 146 mio. EUR turnover and approx. 16 mio. EUR EBIT generated

2G Energy AG / Key word(s): Preliminary Results/Final Results

03.05.2013 / 16:27

---

Corporate News

2G Energy AG

– Preliminary group results for financial year 2012: approx. 146 mio. EUR turnover and approx. 16 mio. EUR EBIT generated

– Share of international turnover increases to 40 %

– Eminent order from big German utility STEAG New Energies

– New CHP generation avus 500 plus launched

Heek, May 3rd, 2013 -2G Energy AG (ISIN DE000A0HL8N9), one of the world’s leading suppliers of cogeneration systems for decentralized energy supply by means of combined heat and power (CHP), generated a turnover of approx. 146 mio. EUR (prior year: 167 mio. EUR) at group level according to preliminary figures released today. The company generated an operating profit (EBIT) of approx. 16 mio. EUR (prior year: 19 mio. EUR). This equates to EBIT margin of 11.2 %. Backed by the boom experienced in the business year 2011 – triggered by the prospering biogas plant industry pulling in orders before the serious cuts in feed-in tariffs came into power with the change in German Erneuerbare-Energien-Gesetz (EEG) (German Renewable Energies Act) at the start of 2012 – 2G Energy adapted its business in good time to the new competitive challenges and reduced its dependency from the German biogas plant market respectively from the state grants involved significantly. Thus, in business year 2012 the Company managed to double its share of sold natural gas operated CHP modules to circa 30 % (prior year: 15 %) and it increased its share of turnover outside Germany from 10 % to circa 40 %.

Christian Grotholt, CEO of 2G Energy AG sets new goals for the current business year: ‘In 2012 we have convinced our national and international customers with CHP modules with the highest efficiencies whether operated with natural gas or with biogas. By doing so, we have been able to explore new markets. In the future we intend to deliver stable growth rates, improve our margins and foster our corporate structures also via standardizing our processes. All this is founded on our leading technology of our own developed and optimized engines and peripheral devices. We will continue investing in our own R & D enterprise and aim at enlarging our position as a vertically integrated manufacturer as well as to further develop our customer service all over the world.’

By continuously developing 2G’s CHP modules with respect to optimize the engines as well as the electronic control and the system-level integration the Company always aspires towards increasing efficiency, advantageous economies and therefore a high customer benefit. In 2012, 2G introduced the agenitor 406, a CHP module of 250 kW engine-power class, which has been the first proprietary development. The CHP has an electric efficiency of 42.5 %. The R & D enterprise of 2G has again been further staffed with new qualified engineers.

Eminent order for a biomethane CHP from utility STEAG

2G has just received an eminent order from STEAG New Energies, Saarbrücken, Germany, to deliver a turn-key CHP module operated with biomethane. The module with an electrical performance of approx. 4.4 MW and a thermal performance of approx. 4.0 MW will be erected in the city of Essen, Germany. A coal fired boiler in an existing boiler house will be replaced by the CHP. The heat of the CHP will be fed in the district heating grid of STEAG Fernwärme. Along 2G’s value added chain the order encompasses all the planning, the fitting up to the operating testing. Big utility companies like STEAG are becoming more and more important partners for 2G. Amongst other things they step by step convert their energy supply into decentralized, environmentally friendly and sustainable systems. In addition, they run district heating networks und take over an important role when we talk about virtual power plants.

First proprietary development in 2013: avus 500 plus

At the recent Hanover Fair, 2G Energy introduced its brand new proprietary developed CHP module with an electrical performance of 550 kW and an efficiency of 42.6 %. The water-cooled, turbo-charged 12 cylinder gas engine of the avus 500 plus can be operated with natural gas or biogas alike. In addition, it can be operated with synthetic gas containing hydrogen. Christian Grotholt, CEO of 2G Energy AG, characterizes the new CHP as a milestone of the Company’s forceful R & D strategy: ‘Quite similar to the agenitor 406 introduced last year, the avus 500 plus wins over with its electrical efficiency, its overall efficiency and last but not least with its long maintenance intervals and its compactness.’

Outlook: stable business development continued in current business year

While the German association of plant engineering and construction (VDMA) recently reported a restrained and declining order inflow from a poll amongst its members, 2G’s order-backlog is pretty stable with 53 mio. EUR at a comparable level to the prior year. Over the next years 2G intends to grow the customer services to a level of about 25 % of group sales. The US market shall be developed to the most important international one in the current business year. For 2013 the management expects group sales of 160 mio. EUR and a low double digit EBIT margin. Additional targets for 2013 and beyond are to disproportionately increase 2G’s international market share in the fossil and renewable energy market for CHP modules, to foster R & D activities and to further develop the USPs of the company.

About 2G Energy AG

2G Energy AG is amongst the world’s leading suppliers of cogeneration systems for decentralized energy supply by means of combined heat and power. The Company’s product portfolio includes systems with an electrical capacity between 20 kW and 2,000 kW for the operation with natural gas, biogas or bio methane. So far, 2G was able to successfully install more than 3,500 modules in 25 countries. 2G serves a wide range of customers from farmers to industrial clients, municipalities, real estate industry up to big utility companies. The high level of customer satisfaction is founded on the close-knit service network as well as the high technical quality and performance of 2G power stations. Thanks to the combined heat and power performance they achieve an overall degree of efficiency between 85 percent and well above 90 percent. To further enlarge the technologically leadership the Company continuously invests in its R&D activities. Next to the construction of combined heat and power stations, 2G Energy offers integrated solutions reaching from the planning stage and installations to serial service and maintenance work. Due to its projectable and scalable availability combined heat and power stations shall play a crucial role as part of intelligent networked energy systems – so called virtual power stations – within the ongoing switch to clean energy.

2G Energy is a public listed company (ISIN DE000A0HL8N9) in the Entry Standard of Deutsche Börse AG a segment within the Open Market (regulated unofficial market). It has a capital stock of 4,430,000 EUR, equalling 4,430,000 shares. Main shareholders are the two company founders with together 58.9 %, freefloat is 41.1 %. In the business year 2011 (Jan. 1st to Dec. 31st) 2G Energy reached sales of 167 mio. EUR and generated an EBIT of 19.5 mio. EUR and a net profit of 13.6 mio EUR. The Company employs about 470 employees.

Financial calendar 2013

May 6/7, 2013 Frühjahrskonferenz Deutsche Börse AG, Frankfurt am Main

May 31, 2013 Publication of Group financial report as of Dec. 31, 2012

July, 17 2013 Ordinary AGM, Münster

Sept. 30, 2013 Publication of Group H1 financial report as of June 30, 2013

Nov. 12/13, 2013 Eigenkapitalforum Deutsche Börse AG, Frankfurt

Further information: www.2-g.de

IR contact:

2G Energy AG

Benzstr. 3, 48619 Heek, Germany

Telefon: +49 2568 93 47-2795

Telefax: +49 2568 93 47-15

email: ir@2-g.de

End of Corporate News

---

03.05.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.

The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language:	English
Company:	2G Energy AG
	Benzstr. 3
	48619 Heek
	Germany
Phone:	+49 (0)2568-9347-0
Fax:	+49 (0)2568-9347-15
E-mail:	service@2-g.de
Internet:	www.2-g.de
ISIN:	DE000A0HL8N9
WKN:	A0HL8N
Listed:	Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in Open Market (Entry Standard)

End of News	DGAP News-Service

- - -
209662  03.05.2013