DGAP-News: 2G Energy AG / Key word(s): Quarter Results/Incoming Orders 2G Energy AG reports company's positive Q3 trend as well as strong sales and results for year-end business accompanied by continued high order book position. 30.11.2016 / 08:07 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Net sales of EUR 92.6 million in 9M 2016 (previous year: EUR 84.3 million); total operating revenue reports marked growth to EUR 119.9 million (previous year: EUR 93.5 million) - Marked 9M EBIT improvement from EUR -1.1 million (9M 2015) to EUR 0.2 million - Order book position remains at very high level of EUR 111.2 million (previous year: EUR 86.0 million) - 2016 outlook clearly confirmed: net sales and earnings targets to be achieved at upper end of range following strong year-end business typical for 2G - New sales trend: flexibility adaptations and superstructures for biogas systems in Germany - 2G receives major order for 9MW mine gas project in France Following a good first half of 2016, 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power systems (CHP systems), reports a continued positive business trend accompanied by further brisk new order intake for CHP systems in the third quarter of 2016. Given an increase in consolidated net sales to EUR 92.6 million (previous year: EUR 84.3 million), a EUR 26.6 million increase in inventories and EUR 0.7 million of other work performed by the company and capitalized, the Group reports a significant increase in total operating revenue to EUR 119.9 million (previous year: EUR 93.5 million). As expected, the result before interest and tax (EBIT) has already improved considerably compared with H1 2016 (EUR -2.4 million), amounting to EUR 0.2 million as of September 30, 2016 (previous year: EUR -1.1 million). Particularly high sales and earnings contributions will be generated during the current fourth quarter, in line with previous years. Accordingly, the Management Board anticipates that net sales will rise significantly from EUR 92.6 million as of September 30, 2016 to up to EUR 170 million by the end of the year, with an EBIT margin of up to 5 percent. Growing new order book position for CHP systems in Germany and internationally The order book position for CHP systems has risen further from EUR 106.4 million as of June 30, 2016 to EUR 111.2 million as of the end of the third quarter 2016 (previous year: EUR 86.1 million), corresponding to a 22.6 percent year-on-year increase. Commissioning and acceptance will occur before the end of 2016 for around a half of these orders. As far as regional distribution is concerned, it is clear that 2G is growing successfully not only in Germany but also internationally. In Germany, the new order book position was up by almost a third compared with 2015. Business in the United Kingdom was also pleasing. The order book position in non-EU countries also doubled. CHP new order intake also affected by trend to make biogas systems flexible Along with international demand for gas operated CHPs, a new sales trend is emerging for the coming financial years with the advancing implementation of flexibility adjustments and superstructures for biogas systems in Germany. 2G can fully participate in this development as it has significantly improved its market position with digital and technical innovations and a repositioned service during the last years. Now that the end is being reached of the first lifecycle of CHPs installed in biogas plants during the 2009 to 2011 boom years it is making economic sense for plant operators to convert them to flexible operation and to boost installed output in order to tap the full 20-year subsidy period offered by the German Renewable Energies Act (EEG). Redundancies are also being created, and the option to receive 10-year follow-up support in a tender process is being preserved. The flexibility premium in the German Renewable Energies Act (EEG) benefits plant operators that boost the share of flexible electricity production and are thereby able to meet electricity market requirements with electricity-oriented operation. 2G customers are consequently relying to a great extent on adding a further CHP to their biogas plants and generating a higher overall subsidy by means of the flexibility premium and a potential flexibility supplement. Large-scale order from French energy producer La Française de l'Énergie for 9 MW 2G has entered into contracts with Gazonor SAS, a subsidiary of the French gas producer "La Française de l'Énergie" for a total package of six containerized gensets with a total electrical power of 9 MW and appropriate methan gas compressors for fourCoal Mine Methane ("CMM") production sites. This order underscores 2G's market positioning and competitiveness as a solution provider, testifying to the success of the growing internationalization of 2G's business. Along with its broadly positioned network, 2G also convinced with its new profile in France through 2G Energie SAS, Nantes, founded in 2016, as well as in relation to project execution and service. The French subsidiary will also provide the full service over the entire lifecycle of the gensets and gas compressors. Positive outlook The Management Board confirms its existing outlook given the company's positive trend and with a view to the strong order book position, a high proportion of which is to be realized as sales revenue before the end of the current fourth quarter. The Management Board assumes that it can in each case reach the upper end of the ranges for the sales and earnings forecasts of EUR 150 million to EUR 170 million and an EBIT margin of between three and five percent. With the expected order overhang, 2G will embark on the 2017 financial year with momentum and good prospects for moderate sales and earnings growth. The outlook for the 2017 financial year will be announced on April 27, 2017. 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 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 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 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 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. The "virtual power plant" operating type, for example, has been created with a software solution. Overall, the 2G power plant 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 digitalization-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 %. 2017 dates April 27, 2017 Preliminary figures as of December 31, 2016 for the 2G Group, FY 2017 results guidance May 30, 2017 Publication of Group Financial Report as of Dec. 31, 2016 July 11, 2017 Ordinary AGM, Ahaus Sept. 28, 2017 Semiannual consolidated financial statements as of June 30, 2017 Nov. 27-29, 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: [email protected] Internet: www.2-g.de --------------------------------------------------------------------------- 30.11.2016 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, Tradegate Exchange; Open Market (Entry Standard) in Frankfurt End of News DGAP News Service --------------------------------------------------------------------------- 525355 30.11.2016