2G Energy AG: H1 net sales up 6.6 % to EUR 114.0 million (previous year: EUR 106.9 million)

• Sales from service business expand by 23.1 % to EUR 67.7 million (previous year: EUR 55.0 million)
• Customer bottlenecks are reflected in delayed commissioning and final invoicing for new installations (-10.8 %)
• According to preliminary figures, highest factory output in company history achieved
• Order backlog at June 30 stands at record level of EUR 220.8 million (previous year: EUR 149.5 million)
• Expansion areas acquired at the Heek site

Heek, August 25, 2022 – 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading producers of gas driven combined heat and power (CHP) systems, once again lifted group sales markedly in the first half of the year by 6.6 % to EUR 114.0 million (previous year: EUR 106.9 million).

Sales breakdown by region is as follows:

Sales include the contribution from the first-time consolidation of Senertec-Center Schweinfurt GmbH, which contributed EUR 1.0 million to (service) Group sales.

Sales from new equipment business expand by 23.1 % to EUR 67.7 million (previous year: EUR 55.0 million)

Unaffected by supply chain problems and therefore developing extraordinarily strongly, the service activities achieved double-digit growth rates in all core markets.

Bottlenecks on the customer side are reflected in reduced commissioning and final invoicing for CHP units (-10.8 %)

Although the distortions on the procurement markets impact on the 2G production processes, they do not significantly delay the completion of the CHP units ordered. On the customer side, however, the trend toward delays in construction progress that has been noticeable for several months has become more pronounced. Despite considerable increases in factory output (final figures are not yet available), it was only possible to bring new installations worth EUR 46.3 million to the final account (previous year:  EUR 51.9 million, -10.8 %)

All markets were equally impacted by the delayed customer construction sites. The increase in sales achieved in North and Central America is based on the very weak starting point of the corresponding prior-year figures.

"Of course, we had hoped for a stronger final bottom line in CHP during the second quarter," as CEO Christian Grotholt stated. "However, it is important to know that as before, in the case of CHP units that have been paid for and built, cancellations are to be expected only in absolutely exceptional cases. CHP units that have been ordered and paid for - in view of the sharp rise in energy prices in the meantime and therefore also the savings potential thanks to CHP units - are accepted by customers relatively promptly."

"We expect commissioning and sales of new plants to pick up significantly in the second half of the year," as COO Ludger Holtkamp outlines. "This assumption is based on the high value of finished and unfinished goods - in plain English, CHP units that are already on customer."

The order book position on June 30 stood at a record level of EUR 220.8 million

Against the backdrop of the delayed commissioning and final invoicing in conjunction with the strong order intake in the second quarter (EUR 60.8 million, previous year: 47.8 million, +27%), the order backlog at the end of the first half of the year increased to EUR 220.8 million (previous year: EUR 149.5 million). Consequently, this order backlog marks a new record and ensures capacity utilization well into next year.

Expansion areas acquired at the Heek site

A plant structure plan developed by the Executive Board with the help of an external consultant in the spring showed that it would be expedient to expand the existing plant site in Heek. Consequently, 2G acquired a neighboring property of 6,000 sqm directly adjacent to the existing production areas. Moreover, 2G has purchased a commercial area of 17,000 sqm in the same industrial park (Heek West). Both land purchases have already been completed. Concrete development plans have not yet been drawn up.

Forecast 2022

With a look to the current fiscal year, 2G continues to expect consolidated sales of EUR 280 to 310 million (previous year: EUR 266 million) as well as an EBIT margin in the range of 6.0 to 8.0 % (previous year:  6.7 %).

2G company portrait

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 (CHPs), the company offers comprehensive solutions in the growth market for highly efficient CHPs. After-sales 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 hydrogen, natural gas, biogas as well as other lean gases. Worldwide, more than 7,000 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 power conversion methods, especially when, for example, hydrogen of regenerative origin is harnessed 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, especially in the deployment of hydrogen engines. As a consequence, 2G’s customers derive consistent benefits 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 hydrogen, natural gas 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 creates a high barrier to market entry for competitors.

2G employs around 750 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 266 million in the 2021 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the “Scale” segment of the Frankfurt Stock Exchange.

2022 calendar dates
August 25                Hamburg Investor Conference
September 5           Consolidated financial statements as of June 30, 2022
September 5-6        Autumn Conference, Frankfurt
November 21          Q3 key figures and business trends
November 28-30     German Equity Forum, Frankfurt

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