2G Energy AG: 2G successfully continues internationalization and diversification strategy

- US subsidiary acquires major project (8 MW) as part of partner concept

- Mine gas project in France (9 MW) successfully completed

- Order book position for CHP systems in Germany and abroad at a good stable level above EUR 100 million

2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, reports a stable new order intake of EUR 65.3 million for CHP systems for the first half of 2017 (previous year: EUR 61.7 million). In terms of individual markets, new order intake in Germany of EUR 35.6 million was almost unchanged compared with the previous year. During the first six months of the financial year, 2G predominantly acquired new orders for biogas operated CHP power plants as part of converting systems to flexible operation and boosting installed output.

In the USA, new order intake doubled to EUR 10.8 million (previous year: EUR 5.4 million), with such orders continuing to reflect new orders for natural gas driven CHP systems. As expected, new order intake in the United Kingdom decreased due to the reduction of feed-in tariffs at the end of March 2017 (EUR 1.8 million, compared with EUR 6.6 million in the previous year). 2G is already pushing its sales of natural gas driven CHP systems in the United Kingdom, thereby establishing an alternative to the weakening biogas market medium-term.

2G reports an order book position of EUR 107.2 million as of June 30, 2017 (previous year: EUR 106.4 million). Given an almost identical order book position year-on-year, the foreign share increased slightly to 42.4 % (previous year: 41.4 %). The marked reduction in the order book position in the United Kingdom (EUR 4.4 million compared with EUR 18.2 million the previous year) was more than offset by intensified activities in other foreign markets such as the USA, Japan and France, among others.

2G receives order for large-scale project in the USA
In July, the US subsidiary 2G Energy Inc., Florida, received a large-scale order for natural gas driven CHP systems with total electric output of 8 MW from Erlanger Health System, Chattanooga, Tennessee, one of the largest US public sector health organizations. The order is worth around USD 6.6 million.
It was acquired as part of the partner concept with sales partner White Harvest Energy, Tennessee, which will be responsible not only for project planning and execution but also for the installation of the containerized CHP systems. For the customer, Erlanger Medical Centers, the benefit of CHP systems lies in cost savings of around 20 % thanks to the highly efficient combined generation of electricity and heating, as well as in terms of emission savings. The reliability of energy supply at the location where they are consumed and the quality of service also played a role in the award of the order to 2G. Erlanger assumes a maximum amortization period of four years.

2G successfully concludes 9 MW large-scale project in France
The French subsidiary 2G Energie SAS, Nantes, has successfully installed and commissioned a total of six mine gas operated CHP systems with 1.5 MW of electric output each for a subsidiary of the French energy generation company La Française de l'Énergie. Final invoicing occurred in June 2017. The order was worth EUR 3.9 million. 2G already announced this order by way of a Corporate News published on November 30, 2016. The order also comprises full maintenance of the entire life-cycle of the CHP power plants and the installed mine gas compressors. 2G identifies a favorable market environment in France where its newly founded subsidiary 2G Energie SAS will tap considerable sales potentials, especially for biogas operated CHP systems.

2G company portrait
2G Energy AG ranks among the world's leading manufacturers of cogeneration (CHP) systems for decentralized energy production and supply by means of combined heat and power. The company's product portfolio includes systems with electric capacity between 20 kW and 2,000 kW for operation with natural gas, biogas, biomethane and other lean gases. 2G has successfully put into operation several thousand CHP systems in 40 countries to date. Especially in the 50 kW to 550 kW performance range, 2G commands proprietary technological combustion engine concepts characterized by low specific fuel consumptions, high operational availability and optimized service intervals. Besides the main production site at the Group headquarters 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 agricultural and industrial operations, local authorities, and the residential sector through to municipal utilities and large-scale utilities. The high level of customer satisfaction is founded on a dense service network as well as 2G power stations' high technical quality and performance. These power stations achieve an overall degree of efficiency from 85 percent and to well above 90 percent thanks to the combined heat and power performance.

Along with the construction of combined heat and power stations, the company, located in Westphalia in the northwest of Germany, offers integrated solutions spanning the planning stage and commissioning through to service and maintenance work. In the context of the energy policy revolution, and as part of modern energy supply concepts, CHP systems are gaining considerably in importance in intelligent energy grid systems - so-called virtual power plants - due to their decentralized and scalable operation, and predictable availability.

2G is consistently expanding its technology leadership through continuous research and development work, both in gas engine technology for natural gas, biogas and synthetic gas applications (e.g. hydrogen), as well as in specific software development. 2G CHP plants are able to be integreated into so-called 'virtual power plants' using modern control systems and corresponding software. The digitalization, which is consistently implemented by 2G, is an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and creates a high barrier to market entry for competitors.

The shares of 2G Energy (ISIN DE000A0HL8N9) have been listed in the trading segment Scale on the Frankfurt Stock Exchange since March 01, 2017. The share capital amounts to EUR 4,430,000, and is divided into 4,430,000 shares. The company's founders held 53.1 % of the shares as of the end of January 2017, with the free float amounting to 46.9 %.

2017 dates
Sept. 28, 2017 Semiannual consolidated financial statements as of June 30, 2017
Nov. 27-28, 2017 German Equity Capital Forum 2017
Nov. 30, 2017 Q3 key figures and business trends

IR contact
2G Energy AG
Benzstr. 3, 48619 Heek
Tel.: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.de