DGAP-News: 2G Energy AG plans to increase dividend once again from 0.42 euro to 0.45 euro per share

• Audited figures show the EBIT margin of 2G Energy AG climbing to 5.5 % (previous year: 3,9 %) on sales revenues of 209.8 million euro (previous year: 189.4 million euro)
   
• Equity ratio amounts to 49.3 % (previous year 47.9 %)
   
• Outlook for 2019 confirmed with sales of 210 - 230 million euro and an EBIT margin of 5.5 % - 7.0 %

Heek, May 10, 2019 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, will propose an increase of the dividend for financial year 2018 to 0.45 euro (previous year: 0.42 euro) at the company's annual meeting on June 25, 2019, the third such increase in succession. The move is justified in financial terms by the company's sustained positive development. Audited Group figures for 2018 show that 2G increased sales by 10.8 % to 209.8 million euro and reported EBIT earnings of 11.5 million euro, up 56.2 % over the year before. The EBIT margin achieved by 2G climbed from 3.9 % to 5.2 %. The service division of 2G contributed 37 % of sales revenues (previous year: 34 %), representing a disproportionate increase of more than 20 % relative to overall sales. The proportion of international sales amounted in total to 35 %. 2G reported consolidated net income of 7.6 million euro for 2018 (previous year: 4.9 million euro). Earnings per share (EPS) amounted to 1.72 euro (previous year: 1.11 euro).

Group reports robust net assets and financial position
As of the balance sheet date of December 31, 2018, 2G reported increased total assets of 124.8 million euro (previous year: 116.3 million euro). One of the main contributing factors on the asset side was an investment in a new Service building at the company's base in Heek, as well as above all a planned increase in stock of engines which will facilitate shorter delivery times and provide a competitive edge. Cash flow from operations declined to 4.9 million euro (previous year: 12.8 million euro). Liquidity, composed largely of payments already received for long-term service contracts, amounted on the balance sheet date to 13.6 million euro (previous year: 16.1 million euro). On the liabilities side, equity continued to rise to EUR 61.1 million (previous year: EUR 55.7 million) as a result of retained earnings; with equity ratio increasing to 49.3 % (previous year: 47.9 %). Overall, 2G continues to enjoy a comfortable net asset and financial position which in turn will form the basis for further growth.

Outlook for 2019 confirmed
Based on continued strong order intake from Germany and abroad (see Corporate News of April 11, 2019), the Management Board of 2G Energy AG looks forward to a continuation of sustained profitable growth in the current financial year. The outlook for 2019 foresees consolidated sales in a range between 210 and 230 million euro and an EBIT margin between 5.5 % and 7.0 %. This forecast is based both on the growth market for cogeneration plants and services which is becoming progressively more attractive worldwide, as well as on the consistent implementation of efficiency and standardization measures within the company.

The audited Group financial statements, the annual report for 2018 and a multi-year overview of key figures are available for download at https://www.2-g.com/en/financial-publications/ in German and in English.
2G company portrait
2G Energy AG is an internationally leading full-service provider of combined heat and power systems (CHP) with electric output between 20 kW and 2,000 kW, which are deployed for the decentralized generation and supply of electricity and heating. 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. In particular, this product range, which is based on thousands of systems realized, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These include rising energy demand accompanied at the same time by the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalization consistently implemented by 2G 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 cogeneration of mechanical energy and heating/cooling make CHP technology more efficient and more environmentally-compatible than conventional energy production methods. Compared with conventional electricity generation, CHP technology saves up to 40 percent of primary energy, and emits up to 60 percent less carbon dioxide and nitrogen oxide. 2G customers thereby benefit consistently from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G employs around 600 staff at its headquarters in Heek, Germany, in St. Augustine, USA, as well as at five other European locations. The company is active in a total of 50 countries and generated net sales of EUR 209.8 million in the 2018 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 December 31, 2018, company founders Christian Grotholt and Ludger Gausling held a 53.5% interest in the company, with the free float amounting to 46.5%.

2019 calendar dates
May 13-14             Spring Conference, Frankfurt am Main
May 29                  Q1 key figures and business trends
June 25                 Ordinary AGM, Ahaus
September 26       Consolidated financial statements as of June 30, 2019
November 25        Q3 key figures and business trends
November 25-26   German Equity Capital Forum 2019, 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: ir@2-g.de
Internet: www.2-g.de