DGAP-News: 2G Energy AG

- Based on preliminary results, 2G reached its forecast of raising sales to around EUR 180 million in FY 2017

- Strong start to the year with very active demand in January 2018 (new order intake of EUR 17.1 million, compared with EUR 6.0 million in the previous year) and EUR 95.9 million of orders on hand (previous year: EUR 91.2 million)

- Successful launch of 2G online shop

- Lean - Philosophy is consistently pursued

- Share included in new Scale 30 Index

2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, achieved its planned growth in sales to around EUR 180.0 million in the 2017 financial year, based on preliminary results (previous year: EUR 174.0 million). The Management Board is confident for the current year as 2G benefits from very well filled order books at the start of 2018, reflecting not only a high surplus from the previous year but also very lively demand at the start of 2018.

January new order intake registered a marked increase to EUR 17.1 million (previous year: EUR 6.0 million). In the German Natural Gas market, 2G receives the first enquries for so-called island supply concepts, which enable customers to provide their energy supply independently of the public grids by means of cogeneration. Other order intake in Germany continues to consist mainly from Biogas-fired CHP plants. In the foreign markets, the regional distribution of orders presents further evidence of the success of the internationalisation and versification strategy the company is pursuing. As last year, foreign markets were dominated by the USA, France and Japan, as well as significant new order intake from Italy.

French subsidiary 2G Energie SAS acquires 11.8 MW major order
In the French CHP market, which biogas has dominated to date, the 2G Group received an order for its first large-scale natural gas project through its French subsidiary 2G Energie SAS, Nantes. The system has electric output of 12.0 MW, distributed among a total of three engines, with the order worth a total of around EUR 3.5 million. The customer is Climatelec SAS, which installs electrical and thermal systems as a subsidiary of utility Dalkia. Dalkia is owned by listed electricity company Électricité de France (EDF), the world's largest electricity producer. Climatelec is responsible for this project's entire installation at the end-customer, a research centre based near Paris. 2G received this order at the end of 2017 and it will become effective in terms of sales and earnings in the second half of 2018. It represents the largest single CHP project in France at present.

In Japan, too, 2G has for the first time received an order for a natural gas driven CHP system through a partner company. The EUR 2.0 million order comprises electric output totalling 4 MW, with installation also being performed by a 2G-certified partner company. Like France, only biogas operated systems have been in demand from Japan to date. With the signing of a 1.2 MW order for a natural-gas fired CHP plant, 2G Italia Srl. has also achieved a significant sales success. For the Italian subsidiary, this is the largest single CHP order to date.

New order intake and order book position in 2017 on previous year's high levels
In the 2017 financial year, 2G recorded new order intake of EUR 133.3 million (previous year: EUR 132.4 million), with EUR 80.3 million of orders deriving from Germany (previous year: EUR 80.0 million) and EUR 53.0 million being generated abroad (previous year: EUR 52.4 million).
Apart from the UK, 2G achieved significant growth in its foreign markets, with some reporting high double-digit rates, especially the USA, where new order intake almost doubled (from USD 11.0 million to USD 20.8 million). Pleasing growth was also achieved in France and Japan of around 13% in each case (France: from EUR 8.7 million to EUR 9.9 million; Japan: from EUR 6.1 million to EUR 6.9 million). Supported by many new customer regions, especially in Asia and Eastern Europe, the expected marked reduction in new order intake in the UK to currently EUR 4.1 million (previous year: EUR 16.6 million) was fully offset.

Further expansion of digitalisation
2G is the first manufacturer-independent CHP systems supplier to launch an online replacement parts shop, which was off to a successful start early this year. Appropriate replacement parts for both CHP systems and stationary gas engines can already be ordered via this platform on a user-friendly, rapid and transparent basis. This successful launch marks a further stage in the "Digitalisation" strategic lead project. Customers are being offered a large selection of original and manufacturer-tested replacement parts, with the product range being continuously expanded over the coming months and advertised correspondingly through targeted campaigns. The first month after the live start of the online shop has already recorded a very gratifying start. A total of EUR 0.2 million of replacement parts have already been ordered through the new platform. The 2G shop is freely accessible in Germany and Austria, including to customers that have not operated 2G CHPs to date.

Company pursues its lean philosophy
As part of its "Lead to Lean" lead project, 2G has worked together with an external consulting firm on a "Terminleitstufen" ("deadline guide steps") concept over the past months, designed to smooth out seasonal effects and stabilise all purchasing and production processes. This process model, which has been tested out in practice, has now been adapted to the specific conditions of 2G, and will be gradually implemented during 2018. Further lean philosophy measures have also been initiated to sustainably improve production processes, enabling shorter delivery times, cost reductions and quality enhancements.

2G shares ranks among the most liquid equities in the Scale stock market segment
A few days ago, 2G Energy AG was included in the start of the new index of Deutsche Börse AG, the Scale 30 Index. This index includes the 30 most liquid shares in the Scale segment. Share turnover on Xetra and on the Frankfurt Stock Exchange were decisive for the inclusion of 2G.

2G company portrait
2G Energy AG is an internationally leading full-service provider of combined heat and power systems (CHP systems) with electric output between 20 kW and 2,000 kW, deployed to produce and supply electricity and heating on a decentralised basis. 2G has always translated innovative CHP technology into industrial progress based on its many years of experience, expertise and technological know-how. 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. Especially this performance spectrum based on thousands of systems realised differentiates 2G significantly from its competitors.

2G is benefiting from global long-term trends that are making efficient and effective energy solutions increasingly important. These include growing energy demand as well as the need to manage natural resources sparingly. Moreover, in the energy policy revolution's future electricity market design, the digitalisation that 2G has implemented consistently 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 simultaneous production of mechanical energy and usable heat makes CHP technology more efficient and more environmentally compatible than conventional energy generation methods. It allows up to 40 percent of primary energy to be saved compared with conventional electricity generation, while reducing carbon dioxide emissions by up to 60 percent. 2G customers thereby benefit consistently from economically and ecologically highly beneficial innovations, with costs being quickly recouped and delivering extensive added values.

2G employs a total of around 600 staff based at the company's headquarters in Heek, Germany, as well as in St. Augustine, USA, and five other European locations. The company is active in a total of 31 countries and generated EUR 174.3 million of sales in the 2016 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007.

The shares of 2G Energy (ISIN DE000A0HL8N9) have been listed in the "Scale" segment of 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. As of May 2017, the company founders held 53.1% of the shares and the free float amounted to 46.9%.

2018 calendar dates
Apr. 26, 2018 Preliminary results as of December 31, 2017 for the 2G Group, 2018 outlook
May 18, 2018 Publication of consolidated financial statements as of December 31, 2017
May 30, 2018 Q1 Key figures and business trends
July 4, 2018 Ordinary AGM, Ahaus
September 27, 2018 Consolidated half-year financial statements as of June 30, 2018
November 26, 2018 Q3 key figures and business trends
November 26-27, 2018 Germany Equity Capital Forum 2018

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