2G Energy AG reports net sales and EBIT growth in the third quarter

- Net sales rise to EUR 146.5 million in the first three quarters of 2020 (previous year: EUR 141.5 million)

- Total output reports significant rise to EUR 180.2 million (previous year: EUR 161.3 million)

- Earnings before interest and tax (EBIT) grow to EUR 5.1 million (previous year: EUR 4.9 million)

- Stable new order intake of EUR 123.0 million (previous year: EUR 118.9 million) ensures capacity utilization until the end of the second quarter of 2021

- Management Board confirms previous net sales and earnings forecasts (EUR 235 million to EUR 250 million with EBIT margin between 5.5 % and 7.0 %) and expects 2021 net sales of EUR 240 million to EUR 260 million

Heek, November 16, 2020 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading producers of gas driven combined heat and power (CHP) systems, remains on its growth track in the current 2020 year. After net sales in the first half of the year were still around EUR 10.2 million below the previous year's figure due to the COVID-19 pandemic, 2G significantly increased its net sales in the third quarter to EUR 61.0 million (previous year: EUR 45.7 million). Further successes in the lead-to-lean and digitalization projects ensured a further increase in output, with the consequence that total operating revenue at the end of the third quarter reached EUR 180.2 million (previous year: EUR 161.3 million).

Earnings before interest and tax (EBIT) improved slightly from EUR 4.9 million to EUR 5.1 million.
As in previous years, the Management Board assumes for the current fourth quarter that CHP systems installed and accepted by December 31, 2020 will deliver the usual high net sales and earnings contributions. On this basis, the Management Board confirms its net sales forecast for the current financial year of between EUR 235 million and EUR 250 million, and continues to expect an EBIT margin of between 5.5 % and 7.0 %.

Order situation remains stable
New order intake as of the end of October amounted to a total of EUR 123.0 million (previous year: EUR 118.9 million). Although the new order intake thereby no longer stands significantly above the previous year's figures, as was the case in the first six months of the current year, it remains robust. As expected, positive drivers are continuing from the German natural gas market. Since the end of the first half-year, 2G has acquired new orders worth a total of EUR 16.1 million (same period in 2019: EUR 7.4 million; EUR +8.7 million). 2G thereby more than offset the decrease in new order intake from the German biogas market, which is gradually cooling (new orders since the end of the first half of the year: EUR 8.6 million; same period in 2019: EUR 14.8 million; EUR -6.2 million).

Given the continuation of stable new order intake, combined with in some cases considerable COVID-19-related catch-up effects in individual foreign markets such as North America, as well as thanks to the continued constant growth of the service business, the Management Board expects net sales of between EUR 240 million and EUR 260 million for next year.

2G company profile
The 2G Energy AG Group is an internationally leading manufacturer of decentralized energy supply systems. With the development, production and technical installation, as well as digital grid integration, of combined heat and power systems, the company offers comprehensive solutions in the growing market for highly efficient combined heat and power (CHP) systems. Aftersales and maintenance services comprise an important additional performance criterion. The product range especially includes CHP modules in the 20 kW and 4,500 kW range for operation utilizing natural gas, biogas, as well as other lean gases and hydrogen. Worldwide, more than 6,500 installed 2G systems in various applications supply electrical and thermal energy to a broad spectrum of customers including companies in the housing industry, agriculture, commercial and industrial companies, public energy utilities, and municipal and local government authorities.

2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional energy production methods, especially when, for example, hydrogen of regenerative origin is utilized as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts. 2G's customers thereby benefit consistently from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G is consistently expanding its technological leadership through continuous research and development work, both in gas engine technology for natural gas, hydrogen and biogas applications, as well as in specific software development. Moreover, in the energy revolution's future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and establishes a high barrier to market entry for competitors.

2G employs around 700 staff at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 236 million in the 2019 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange. The share capital amounts to EUR 4,430,000, and is divided into 4,430,000 shares. As of June 30, 2020, company founders Christian Grotholt and Ludger Gausling held a 52.3 % interest in the company, with the free float amounting to 47.7 %.

2020/2021 calendar dates
November 16-18                 German Equity Forum (Online Conference)
February 25                        Announcement of preliminary 2020 consolidated net sales
March 25                            Preliminary results for the FY ending December 31, 2020, 2021 guidance
April 29                               Publication of the consolidated financial statements for the FY ending December 31, 2020
May 17                               Q1 key figures and business trends
May 17-19                          Spring Conference, Frankfurt am Main
June 15                              Ordinary AGM, Ahaus
September 9                      Consolidated financial statements as of June 30, 2021
November 18                     Q3 key figures and business trends
November                         German Equity Capital Forum, Frankfurt am Main

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: [email protected]
Internet: www.2-g.de