2G Energy AG — Earnings Release 2014

Dec 1, 2014

News Details

Corporate | 1 December 2014 07:28

2G Energy AG: business at year end stamped by final commissioning of CHP projects

2G Energy AG / Key word(s): 9-month figures/9-month figures

01.12.2014 / 07:28

---

Corporate News

2G Energy AG: business at year end stamped by final commissioning of CHP projects

– 9M 2014 revenue: 112.2 Mio. EUR (9M 2013: 65.8 Mio. EUR)

– 9M 2014 total operating revenue: 146.4 Mio. EUR (9M 2013: 81.6 Mio. EUR)

– 9M 2014 EBIT: 6.1 Mio. EUR (9M 2013: 0.3 Mio. EUR)

– Order book position: 83 Mio. EUR (9M 2013: 80 Mio. EUR)

– Strong business in UK

– Forecast 2014 confirmed: turnover above 165 Mio. EUR, EBIT-margin 6 % to 8 %

Heek, Germany, 1 December, 2014 – 2G Energy AG (ISIN DE000A0HL8N9), one of the leading German manufacturers of combined heat and power (CHP) plants, generated EUR 112.2 million of consolidated revenue during the first nine months (January 1 to September 30) of the 2014 financial year (9M 2013: EUR 65.8 million). Due to change in stock of EUR 34.1 million (9M 2013: EUR 15.8 million) total operating revenue significantly rose to EUR 146.4 million (9M 2013: EUR 81.6 million), reflecting an increase of circa 80 %. During the fourth quarter of the current business year revenues will further substantially rise due to scheduled technical acceptance and final invoices of CHP projects until the end of the year.

The third quarter was mainly affected by final works and preparation of commissioning of CHP orders which have been delivered to German customers in time before 1 August, 2014 (coming into force of German Renewable Energy Act, EEG). Outside Germany especially the British market developed well. Meanwhile, the British subsidiary is the top-selling among the 2G group’s subsidiaries abroad. During the third quarter their orders mainly contributed to the utilization of the production facilities. According to the German GAAP (HGB) and the characteristics of 2G’s business sales and earnings will mainly be generated in the second half of the business year.

As of 30 September, 2014 2G reports an EBIT of EUR 6.1 million (H1 2014: minus EUR 0.5 million; 9M 2013: EUR 0.3 million). Consolidated net income after tax for the first nine months of the current business year stood at EUR 2.1 million (9M 2013: EUR 0.4 million). Management Board reiterates it’s forecast (already adjusted at the end of September, 2014) increased for turnover of above EUR 165 million and confirmed for EBIT-margin between 6 % and 8 % for the current business year.

As of 30 September, 2014 the order backlog including unfinished goods and not fully commissioned CHPs stood at EUR 83.3 million, just above the level (circa EUR 80 million) of the prior year. This order backlog includes orders worth circa EUR 10 million with a scheduled delivery date in 2015. Orders from abroad have a share of circa 23 % (prior year: circa 27 %). 40 % of the overall order backlog are for biogas driven CHPs, 60 % are for natural gas driven CHPs. Looking at the whole business year 2014, service and after-sales business must also be taken into account.

2G Energy AG company profile

2G Energy AG is amongst the world’s leading manufacturer of cogeneration systems (CHP) for decentralized energy production and supply by means of combined heat and power. The company’s product portfolio includes systems with an electrical capacity between 20 kW and 4,000 kW for the operation with natural gas, biogas or bio methane. So far, 2G was able to successfully install thousands of CHPs in 33 countries. Especially, in the performance range of 50 kW to 550 kW 2G posses own technological combustion engine concepts characterized by low specific fuel consumptions. Next to the main production site at its headquarter in Heek, Germany, the company has invested in an additional production and sales & service site in St. Augustine, Florida, USA. 2G’s customers range from farmers to industrial clients, municipalities, real estate industry, up to municipal utilities and 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 for gas engines for the use of natural gas, biogas and synthetic gases (e.g. hydrogen). Next to the construction of combined heat and power stations, the company, located in Westphalia in the north-west of Germany, offers integrated solutions reaching from the planning stage and installations to serial service and maintenance work. Due to its decentral locations, scalability and projectable 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.

In the context of Germany’s new energy policy, CHPs within smart grids – so-called virtual power plants – are becoming rapidly important due to their predictable availability. 2G Energy (ISIN DE000A0HL8N9) is listed in the Entry Standard of Deutsche Börse AG. The share capital amounts to EUR 4,430,000, and is split into 4,430,000 shares. As of December 31, 2013, the company’s founders held 55.9 % of the shares, with the free float amounting to 43.9 %. In 2013 financial year (January 1 to December 31), 2G Energy generated EUR 126.1 million of revenues, EUR 3.1 million of earnings before interest and tax (EBIT), and EUR 1.0 million of net income. The company employs 518 staff as of 31 Dec., 2013.

Forthcoming dates 2015

28 May, 2015 Group financial figures as of 31 Dec., 2014

8 July, 2015 Ordinary Annual General Meeting, Ahaus, Germany

29 Sept., 2015 Half year group financial figures as of 30 June, 2015

Further information: www.2-g.de

Investor relations contact

2G Energy AG

Benzstr. 3

48619 Heek

Germany

Telephone: +49 (0) 2568 93 47-2795

Fax: +49 (0) 2568 93 47-15

E-mail: ir@2-g.de

Internet: www.2-g.de

---

01.12.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

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

The DGAP 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

- - -
300955  01.12.2014