2G Energy AG: Q3 2017 results in line with expectations

Corporate News Heek, Germany, November 27, 2017

2G Energy AG: Q3 results in line with expectations

- Revenues for the first three quarters of 2017 rise to EUR 110.6 million (previous year: EUR 92.6 million) while total output increases from EUR 120 million to EUR 127.9 million

- EBIT increases to EUR 0.5 million (previous year: EUR 0.2 million)

- Volume of incoming orders up 14.5% to EUR 103.2 million

- 2017 results forecast narrowed with EBIT margin projected to be 3% - 3.5%

The positive business development of 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading producers of gas driven combined heat and power (CHP) systems, continued during the third quarter of the 2017 fiscal year. During the first nine months of the year, consolidated revenues rose to EUR 110.6 million (previous year: EUR 92.6 million); total output increased to EUR 127.9 million (previous year: 119.9 million). The volume of incoming orders grew energetically in Germany and the company's international markets.

In line with seasonal expectations, the company's earnings before interest and taxes (EBIT) improved to EUR 0.5 million as of September 30, 2017 (previous year: EUR 0.2 million) after posting a negative EBIT of EUR 0.5 million during the reporting period ending June 30, 2017. Results were impacted by a loss of receivables from a customer in the UK. For the current fourth quarter, the management board anticipates significant revenue and profit contributions from installed and approved CHP systems

The Management Board narrowed its forecast for the 2017 EBIT margin to 3% - 3.5% (after an initial projection of 3% - 5%). The forecast range of EUR 174 to EUR 180 million in consolidated revenues was confirmed.

As of September 30, 2017, both the volume of current orders and the volume of incoming orders were larger than during the same period a year earlier. Incoming orders rose by a dynamic 14.5% to EUR 103.2 million (previous year: EUR 90.1 million).

In Germany, demand for biogas-powered CHP systems remained strong while orders for CHP systems powered by natural gas rose significantly. The volume of new orders developed particularly positively in the USA where it climbed from EUR 7.3 million to EUR 13.3 million, driven primarily by demand for CHP systems powered by natural gas. In addition, France and Japan remained the company's strongest international markets. In the UK, the volume of orders declined in line with expectations due to the change in feed-in renumeration for CHP systems powered by biogas that took effect on April 1, 2017. However, British subsidiary 2 Energy Ltd. is increasingly selling highly effcicient natural gas modules with its volume of incoming orders rising to EUR 2.8 million, up approximately 50% compared to the previous quarter. The positive developments in the international markets reinforce the company's strategic decision to become less dependent on individual markets and to further diversify the sales of CHP systems and services through the expansion of its global network of partners. The consolidated volume of orders increased 19% to EUR 132.8 million (2016: EUR 111.2 million) compared to the same time period a year earlier, with international business accounting for 37% of that (2016: 39%).

According to an industry survey conducted by the renowned Öko Institute and Energy & Management newspaper published on Novermber 15, 2017, 2G has further consolidated its strong market position among Germany's top 3 providers based on electric output sold. In fact, 2G has been able to significantly close the gap to second-placed Caterpillar Energy Solutions (formerly MWM), which is now just 2% compared to 35% in 2015.

About 2G Energy AG
2G Energy AG is a leading international full service provider of cogeneration (CHP) systems with an electric capacity of between 20 kW and 2,000 kW utilized for the decentralized generation and supply of electricity and heating. 2G has consistently translated the innovative CHP technology into industrial progress through its long standing experience, competences and technological know-how. 2G is steadily expanding its technology leadership through continuous research and development, both in gas engine technology for natural gas, biogas and synthetic gas applications (e.g. hydrogen), as well as in specific software development. This product and service range in particular, with thousands of systems put into operation, puts clear blue water between 2G and its competitors.

2G benefits from long-term global trends that make high-performance energy solutions increasingly important. This includes the growing demand for energy, accompanied by the necessity of using natural resources sparingly. Furthermore, digitalization, which is consistently implemented by 2G in the context of the electricity market design of the future as part of the energy policy revolution, in combination with solar, wind, biogas and natural gas producers is an indispensable system-relevant component and creates a high barrier to market entry for competitors.

The combined generation of mechanical energy and useful heat makes the CHP technology more efficient and climate compatible compared with conventional methods of producing energy. Measured against conventional power generation, the technology saves up to 40 % on primary energy, while reducing CO2 emissions by up to 60 %. 2G's customers therefore consistently benefit from extremely advantageous, economical and ecological innovations that enable rapid amortization and deliver considerable value added.

2G employs around 600 members of staff who work in the company's headquarters in Heek, Germany, in St. Augustine, USA, and in five other European locations. The company operates in a total of 31 countries and generated revenues of EUR 174.3 million in fiscal 2016. 2G was founded in 1995 and has been a listed company since 2007.

The shares of 2G Energy (ISIN DE000A0HL8N9) have been listed in the "Scale" trading segment on the Frankfurt Stock Exchange since March 1, 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 May 2017, with free float amounting to 46.9 %

2018 dates
July 4, 2018 2018 Annual general meeting, Ahaus, Germany

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