DGAP-News: 2G Energy AG

- EBIT result improves significantly by EUR 1.9 million to EUR -0.5 million

- Constant growth abroad reflects successful internationalization strategy

2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading producers of gas driven combined heat and power (CHP) systems, reports a consistently positive business trend. During the first half of 2017, sales rose from EUR 63.8 million to EUR 72.4 million, with total operating revenue almost unchanged at EUR 85.4 million (H1 2016: EUR 85.5 million).

The result before interest and tax (EBIT) improved significantly by EUR 1.9 million to EUR -0.5 million. Along with higher sales, a more favorable mix of products and countries exerted a positive effect on the result. The cost of materials ratio reduced from 74.0 % to 69.6 %, while the personnel cost ratio edged up slightly from 17.4 % to 18.9 %.

Significantly above-average growth abroad
During the first half of the year, for the first time more than 50 % of sales were generated from the sale of CHP systems abroad. This development underscores the strategic objective of increasingly diversifying through the further expansion of the worldwide partner network and becoming independent of individual markets. 2G aims to become a globalized, leading supplier of CHP systems in the medium term.
The allocation of consolidated sales to the individual divisions is typical for the first half of the year and is almost unchanged compared with the previous year: 56 % (H1 2016: 57.0 %) of a total of EUR 72.4 million was attributable to the sale of CHP systems and 44 % (H1 2016: 43 %) to service business.

Continued stable balance sheet ratios and high liquidity
Total assets reported only a slight rise of EUR 0.8 million to EUR 112.2 million compared with the December 31, 2016 balance sheet date. Significant changes on the assets side included a EUR 11.8 million increase in work-in-progress to EUR 45.1 million, due to factors related to the reporting date. Trade receivables were reduced by EUR 6.7 million to EUR 22.5 million, reflected in a rise in liquidity from EUR 10.2 million to EUR 17.4 million. The equity and liabilities side continues to be characterized by a high level of equity at EUR 51.9 million, corresponding to a 46.3 % equity ratio.

Sales and earnings forecasts confirmed
2G last reported on September 12, 2017 on the positive course of new order intake beyond the first half of the year. The order book position as of the end of August 2017 stood at EUR 122.7 million accordingly (previous year: EUR 127.2 million). Based on this, the Management Board sees production being utilized in two-shift operation until the end of the first quarter of 2018, and expects sales to increase compared with the previous year (EUR 174 million) to up to EUR 180.0 million, with an EBIT margin between 3 % and 5 %.

Download half-year report
Further details can be found in the H1 2017 report, which can be downloaded from today at www.2-g.com (Investor Relations - Financial Publications).

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 %

2017 dates
Nov. 27. - 28, 2017 German Equity Capital Forum 2017
Nov. 30, 2017 Q3 key figures and business trends

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
Internet: www.2-g.de