EnviTec Biogas AG

Earnings Release • Nov 29, 2007

News Details

Corporate | 29 November 2007 08:18

EnviTec Biogas presents financial report on the first nine months of 2007:

EnviTec Biogas AG / Quarter Results

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EnviTec Biogas presents financial report on the first nine months of 2007:
Double-digit sales and earnings growth

Lohne, November 29, 2007 – EnviTec Biogas AG [ISIN: DE000A0MVLS8,
WKN: A0MVLS] has presented its financial report for the first nine months
of 2007. The biogas plant manufacturer, which is headquartered in Lohne,
Lower Saxony, generated sales of EUR 102.2 million (9M 2006: EUR 63.4
million) and EBIT of EUR 15.8 million (9M 2006: EUR 13.2 million). The EBIT
margin came in at 15.5 percent.

As of September 30, 2007, EnviTec plants with a nominal capacity of 88.2 MW
were in operation. 'Although the political discussion about the amendment
of the Renewable Energies Act and the sharp increase in commodity prices
have prompted customers in the biogas market to adopt a wait-and-see
stance, we are satisfied with our nine-month figures,' said Jörg Fischer,
CFO of EnviTec Biogas. 'We have increased our sales and earnings and
underlined our strong market position.' As of September 30, 2007, the
company employed 258 people (9M 2006: 160).

In the third quarter of 2007, EnviTec generated sales of EUR 36.6 million
(Q3 2006: EUR 29.3 million) and EBIT of EUR 4.5 million (Q3 2006: EUR 5.5
million). The latter mainly reflects the enlargement of the workforce, the
investments in the extension of the own plant operation activities and the
international expansion. These strategic measures had been announced by the
company on the occasion of the IPO and have since been implemented
consistently. 'Due to the lower-than-expected sales revenues, the high
expenses were not fully offset,' Jörg Fischer explained. 'Nevertheless we
are convinced that these important strategic investments will pay off in
the short term.'

In the third quarter, EnviTec established a joint venture in France and a
company in the Netherlands. The biogas plant manufacturer is now
represented by subsidiaries or sales offices in ten countries. Similar to
the German Renewable Energies Act (EEG), the laws in several countries are
about to be amended. Italy, for instance, plans to improve the general
conditions for biogas significantly and to increase the feed-in
compensation from 2008. While this will ultimately improve the operating
environment for EnviTec, it means that customers are currently holding back
on their orders for new plants.

As of September 30, 2007, the company’s order backlog for the construction
of biogas plants outside Germany primarily in Belgium and the Czech
Republic amounted to approx. EUR 36 million. This represents more than 25
percent of the total order backlog. 'By introducing attractive feed-in
compensation rates, many European countries have laid the foundation for a
growing biogas market or are currently in negotiations. Against this
background, our international business activities will be a main growth
driver,' said Olaf von Lehmden, CEO of EnviTec Biogas.

Besides its plant construction activities, EnviTec has also stepped up its
own plant operation activities. In this field, the company operates biogas
plants together with third parties. Plants with a combined capacity of 7.9
MW have already been connected to the grid or are under construction, while
plants with a capacity of 4.0 MW are at the planning stage. This business
segment will continue to be expanded aggressively, as it is characterised
by attractive margins and a regular cash flow. Olaf von Lehmden: 'We expect
cooperations with local partners to present many opportunities, especially
abroad.' The business segment is expected to make a noticeable contribution
to sales already next year.

In October, EnviTec Biogas signed two large-scale contracts worth EUR 15
million and EUR 42 million, respectively. The Güstrow project will benefit
from EnviTec’s experience in the realisation of large and complex projects.
'A projected biogas quantity of roughly 10,000 cubic metres per hour will
make Güstrow the world’s largest plant to feed biogas into the natural gas
grid and will demonstrate our expertise in this important market of the
future,' said Olaf von Lehmden.

The biogas plant manufacturer plans to further increase the energy
efficiency of biogas through technological developments such as the
processing of fermentation residues and the gasification of solid matter
but also through better land use and optimised seeds. The growing
international demand is making EnviTec optimistic. The company is well
positioned abroad and will expand its presence in markets characterised by
a stable political framework for biogas investment. The company projects
sales of EUR 130 - 140 million and EBIT of EUR 20 - 22 million for the full
year 2007.

The report on the third quarter of 2007 is available for downloading at
www.envitec-biogas.de.

About EnviTec Biogas:
EnviTec Biogas AG covers the entire value chain for the production of
biogas - including the planning and turnkey construction of biogas plants
as well as their commissioning. The company provides the biological and
technical service and also offers the full plant and operating management.
In addition, EnviTec also operates its own biogas plants. In Penkun, in the
German state of Mecklenburg-Western Pomerania, EnviTec is currently
constructing what it believes to be the world's largest biogas park with an
electrical connected load of 20 megawatts. Already today, EnviTec is
represented through its own subsidiaries, joint ventures or sales offices
in the Netherlands, Italy, France, the UK, China, Hungary, the Czech
Republic, Romania, the Ukraine and India. In Belgium, Croatia and Greece,
the company is already in the process of planning and constructing biogas
plants. In 2006 EnviTec generated revenues of EUR 100.7 million and EBIT of
EUR 18.5 million. The EnviTec Group has about 260 employees. Since July
2007 EnviTec is listed on the Prime Standard segment of the Frankfurt Stock
Exchange.

Investor Relations: Joanna Rode, EnviTec Biogas AG, Tel: +49 44 42 80
65-118, E-Mail: ir@envitec-biogas.de
Press Contact: Grit Pauli, HOSCHKE & CONSORTEN Public Relations GmbH,
Tel: +49 40 36 90 50-31, E-Mail: g.pauli@hoschke.de

29.11.2007 Financial News transmitted by DGAP

Language: English
Issuer: EnviTec Biogas AG
Industriering 10a
49393 Lohne
Deutschland
Phone: +49 (0) 25 74 / 88 88 - 0
Fax: +49 (0) 25 74 / 88 88 - 800
E-mail: info@envitec-biogas.de
Internet: www.envitec-biogas.de
ISIN: DE000A0MVLS8
WKN: A0MVLS
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

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