DGAP-News: 2G Energy AG / Key word(s): Incoming Orders 2G Energy AG: Order book position above EUR 100 million for CHP systems 04.07.2016 / 08:54 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Order book position as of May 31, 2016: EUR 101.1 million (previous year: EUR 72.4 million) - Founding of independent subsidiary in Nantes, France - Contract with CFO Dietmar Brockhaus extended for five years 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, reports an order book position of EUR 101 million for CHP systems as of May 31, 2016 (previous year: EUR 72.4 million). The export ratio amounts to 44.1 %. Along with high order book positions in the UK (EUR 19.8 million) and the USA (EUR 13.3 million), France also contributes a pleasing EUR 3.0 million to the Group's total order book position. This consequently confirms the anticipated tangible demand recovery in the wake of France's new energy policy act (see corporate news published on November 10, 2015; www.2-g.de). The outstanding approval by the EU Commission (state aid law review) of Germany's 2016 Cogeneration Act is reflected in 2G's order book position, insofar as the company's EUR 7.0 million of new orders received in Germany for natural gas operated 2G power plants lies below the previous year's EUR 19.0 million. This compares with a EUR 16.2 million order book position for biogas driven 2G power plants (previous year: EUR 5.7 million). 2G thereby demonstrates again that, as a medium-sized company, it can respond quickly to corresponding market conditions, and position itself flexibly while doing so. The company's Management Board takes a relaxed view of the government's draft of the 2016 amendment to the German Renewable Energies Act (EEG), which the German federal cabinet approved on June 8, 2016. This draft includes some (market economy based) modifications for biomass systems (including CHP systems, in other words) in compensation and subsidy structures. State payments for electricity generated by biomass systems are to be calculated through tenders in the future. Tender volumes (for new and existing biomass systems) are to amount to 150 MW in each of the years 2017 to 2019, and to 200 MW in each of the years 2020 to 2022. Existing biomass plants can also participate in tenders to receive ten-year follow-up financing, thereby establishing a follow-up regulation in the German Renewable Energies Act (EEG) for the first time. The planned retention of the expansion of flexibilized biogas plant operation pursuant to the EEG 2014 is also important for 2G's sales potentials. In the next step, the draft legislation is to be forwarded to the Bundestag and Bundesrat. The aim of the German Federal Ministry of Economics and Technology (BMWi) - which is managing this legislation - is to rapidly conclude the parliamentary process. In light of the high order book position at the midyear stage (most of which will be finally invoiced before the end of 2016), the sales revenue that has already been generated, and the continuously running service business, the Management Board is reconfirming its sales revenue and earnings forecast of EUR 150 million to EUR 170 million, and an EBIT margin of 3 - 5 %. The Management Board expects to achieve the respective upper ends of these ranges. Independent subsidiary founded in France Measured in terms of the last two years' capacity expansion, 2G has achieved a good market position with an approximately 30 % market share in the French market for biogas driven CHP systems. 2G will found an independent French sales and service company in Nantes to secure this position and participate in anticipated prospering sales opportunities in the future to an above-average extent. 2G has already recruited a professional who is very familiar with the sector to act as the company's managing director. Over the past years, this expert has worked successfully for international companies operating in France, both in the technical sales and in the project processing areas. 2G Solutions of Cogeneration S.L., Vic (Barcelona), which was founded in 2008, will focus in the future on sales and service on the Iberian Peninsula, as well as in the Maghreb states. Activities and networks on the French market are to be transferred successively. Contract extension for CFO Dietmar Brockhaus The Supervisory Board has extended the contract with Chief Financial Officer Dietmar Brockhaus for a further five years. Mr. Brockhaus is thereby appointed as a member of the Management Board of 2G Energy AG until the end of 2021, and retains responsibility for the business areas of finance, legal, personnel and investor relations. 2G Energy company portrait 2G Energy AG ranks among the world"s leading manufacturers of cogeneration (CHP) systems for decentralised energy production and supply by means of combined heat and power. The company"s product portfolio includes systems with an electric capacity between 20 kW and 4,000 kW for operation with natural gas, biogas, biomethane and other lean gases. 2G has successfully installed several thousand CHP systems in 40 countries to date. Especially in the 50 kW to 550 kW performance range, 2G possesses proprietary technological combustion engine concepts characterised by low specific fuel consumptions, high operational availability and optimised 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 combined heat and power performance. Along with the construction of combined heat and power stations, the company, located in Westphalia in the north-west of Germany, offers integrated solutions spanning the planning stage and installation 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 decentralised 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. The "virtual power plant" operating type has been created with a software solution, for example. Overall, the 2G system is thereby operated on a basis that is "heating-managed and electricity- oriented" in order to significantly simplify integration within a grid group. In the energy policy revolution"s future electricity market design, such digitalisation-enabled flexibility forms 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 Entry Standard of Deutsche Börse AG since July 31, 2007. The share capital amounts to EUR 4,430,000, and is divided into 4,430,000 shares. The company"s founders held 55.3 % of the shares as of December 31 2015, with the free float amounting to 44.7 %. 2016 dates July 5, 2016 Ordinary AGM, Ahaus Sept. 27, 2016 Semiannual consolidated financial statements as of June 30, 2016 Nov. 21-23, 2016 German Equity Capital Forum 2016 Nov. 30, 2016 Q3 key figures and business trends Further information: www.2-g.com Contact 2G Energy AG Benzstraße 3 48619 Heek Telephone: +49 2568 9347-2795 Telefax: +49 2568 9347-15 E-Mail: [email protected] Internet: www.2-g.de --------------------------------------------------------------------------- 04.07.2016 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. Archive at 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: [email protected] Internet: www.2-g.de ISIN: DE000A0HL8N9 WKN: A0HL8N Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News Service --------------------------------------------------------------------------- 477153 04.07.2016