EnviTec Biogas AG

Earnings Release • Jul 8, 2011

News Details

Corporate | 8 July 2011 11:30

EnviTec Biogas: AGM marked by upswing: New EEG opens up opportunities

EnviTec Biogas AG / Key word(s): AGM/EGM

08.07.2011 / 11:30

Lohne, 8 July 2011 - At yesterday's Annual General Meeting of EnviTec
Biogas AG in Lohne, more than 99% of the attending shareholders approved
all items on the agenda. Apart from approving the acts of the Management
Board and the Supervisory Board, new authorised capital was created.

The general tone of the annual shareholder meeting of Europe's leading
manufacturer of biogas plants clearly reflected the ongoing upswing.
'Having managed the turnaround last year, we primarily aim to further
improve our result this year,' said EnviTec CFO Jörg Fischer. Following a
weather-induced difficult start to the year 2010, the company increased its
sales revenues from quarter to quarter and generated revenues of EUR 47.7
million in the final quarter, which marked a record in the history of the
company. Overall, EnviTec increased its sales revenues in 2010 by 23.4%
from EUR 119.9 million to EUR 148.0 million. Earnings before interest and
taxes (EBIT) reached EUR 1.0 million (previous year: EUR -0.5 million). The
dynamic growth continued in the first quarter of 2011, with sales revenues
up by over 70% on the previous year to EUR 36.6 million and earnings before
interest and taxes (EBIT) climbing from EUR -0.9 million to EUR 0.5
million. Besides high demand for biogas plants in Germany, EnviTec
increasingly benefits from its expansion abroad, the successful creation of
new business segments and the development of new technologies.

Over the past years, the company based in the Lower Saxony town of Lohne
has successfully established itself throughout Europe. 'At this stage, we
have plants in operation or under construction in eleven countries, said
Roel Slotman, COO of EnviTec Biogas. 'We have signed contracts in another
three countries.' The order book reflects the successful international
expansion: in the first quarter of 2011, EnviTec Biogas received new orders
in an amount of EUR 82.1 million, of which almost 50 percent (EUR 40.1
million) come from international customers.

Besides the company's international expansion, the Own Plant Operation and
Service segments are becoming increasingly stable contributors. At the end
of 2010, the biogas plants operated and built by EnviTec - many of them in
cooperation with partners - had a capacity of 30.5 megawatts (MW). This
year, the company plans to increase the capacity to more than 40 MW. The
business segment is characterised by a high margin and stable cash flows.
Biogas plant-related services are also making an increasing contribution to
EnviTec's growth. Last year, the segment's sales revenues increased by
47.1% to EUR 9.8 million.

The outlook for the year 2011 is positive. The dynamic growth should
continue and lead to a marked increase in sales and earnings as compared to
the previous year. The performance in 2012 will depend, among other things,
on the new legal framework in Germany. The final adoption of the amendment
of the Renewable Energy Sources Act (EEG) by the upper house of the German
parliament, the Bundesrat, is still pending. The draft bill of the EEG 2012
shows very clearly that the German biogas market will remain attractive -
but it will also become more challenging with regard to the plant concepts.
From EnviTec's point of view, there will be two core segments in the field
of plant construction in future, namely gas processing plants and
heat-oriented electricity generating plants in the 500 kW range. The new
EEG also provides for a market premium for the marketing of electricity and
includes additional incentives to encourage more requirement-oriented
generation of energy. Since the beginning of the year, EnviTec has
addressed the issue of marketing of its own biogas (biomethane). In this
context, other uses not covered by the EEG such as the use of biogas as
vehicle fuel or the combined use in highly efficient condensing boilers
should gain importance.

To accommodate these future applications, EnviTec has established the
'Energy Contracting' segment. 'We are preparing for a future in which
biogas will be more than an environmentally compatible fuel for
co-generation plants and we will tap into new value chains and expand
existing ones,' said an optimistic Olaf von Lehmden, CEO of EnviTec Biogas.

About EnviTec Biogas AG

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 full plant and operating management. In Güstrow,
in the German state of Mecklenburg-
Western Pomerania, EnviTec Biogas built the world's largest plant for the
production of biogas to natural gas
standards with a thermal output of 55 megawatts. In addition, the company
also operates its own biogas plants.
Today, the company is represented in more than 15 countries throughout
Europe, as well as in India. EnviTec
Biogas generated revenues of EUR 148 million and EBIT of EUR 1.0 million in
2010. The EnviTec Group
currently has 416 employees. EnviTec has been listed on the Prime Standard
segment of the Frankfurt Stock
Exchange since July 2007.

Press contact:
Thomas Bolte
EnviTec Biogas AG
Tel: +49 25 74 88 88 -198
E-Mail: t.bolte@envitec-biogas.de

Investor Relations:
Olaf Brandes
EnviTec Biogas AG
Tel: +49 44 42 80 65 -118
E-Mail: ir@envitec-biogas.de

End of Corporate News

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Language: English
Company: EnviTec Biogas AG
Industriering 10a
49393 Lohne
Deutschland
Phone: +49 (0) 44 42 - 80 65 0
Fax: +49 (0) 44 42 - 80 65 103
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, Hannover,
München, Stuttgart

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