DGAP-News: 2G Energy AG: Successful FY 2017 and positive outlook for 2018

• Net sales of EUR 189.4 million at new record level
• EBIT margin improved to 3.9 % (previous year: 3.2 %), consolidated net profit of EUR 4.9 million (previous year: EUR 1.8 million)
• 2018 Q1 new order intake up 90.4 % year-on-year
• Guidance for 2018: Further constant growth in sales and earnings expected

Heek, April 26, 2018 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, reports EUR 189.4 million of net sales in the 2017 financial year elapsed (previous year: EUR 174.3 million), representing 8.7 % sales growth and exceeding the previous record from 2014. Earnings before interest and tax (EBIT) improved by 29.8 % to EUR 7.3 million (previous year: EUR 5.6 million), corresponding to a 3.9 % EBIT margin. "We achieved further growth in the past financial year and took important steps to enhance efficiency and to smooth seasonal effects," is how Christian Grotholt, CEO of 2G Energy AG, expresses his satisfaction with business progress. "We will continue to implement our Lead to Lean project as well as our internationalisation and digitalisation in 2018. We are certain we are thereby laying a promising foundation for our company's future growth and development."

Strong foreign business - high demand for biogas driven systems abroad
Especially strong foreign business proved a key driver of the positive business trend. 2G generated 35.2 % of its net sales abroad (previous year: 30.3 %), reflecting high demand from the USA, the UK, France and Japan. In terms of net sales generated from selling CHP systems, this dynamic is even clearer: A total of 42.1 % of net sales in this business area were generated abroad (previous year: 33.5 %) - representing a growth leap of 33.9 % in absolute figures. Services as well as replacement parts sales also performed well. Net sales from this business area grew by an above-average rate of 12.8 % to reach EUR 64.5 million (previous year: EUR 57.1 million).

Shorter throughput times lead to reduction in work in progress
Thanks to improved project management, a high proportion of CHP projects were finally invoiced and recognised as revenue as of the year-end. In addition, purchased services decreased from EUR 28.4 million to EUR 26.1 million due to a reduced level of general contractor activities. The cost of materials ratio thereby diminished by around 3.5 percentage points to 66.6 % (previous year: 70.1 %). The hiring of service personnel in Germany as well as the first-time consolidation of 2G Energie SAS led personnel costs to rise to EUR 32.7 million (previous year: EUR 30.0 million), representing a 17.2 % personnel cost ratio (previous year: 16.3 %). Legal and consultancy costs connected with the Lead to Lean project as well as tax advisory expenses in the context of the internationalisation and higher costs for outgoing freight as well as sales commissions reflecting the strong foreign business raised other operating expenses to EUR 21.0 million (previous year: EUR 18.9 million). In sum, consolidated net profit improved to EUR 4.9 million (previous year: EUR 1.8 million).

Very brisk new order intake, further corporate growth expected in 2018
2G achieved EUR 54.7 million of new order intake in the first quarter of 2018 (previous year: EUR 28.7 million), representing a marked increase of 90.4 % compared with the corresponding prior-year period. Order books are very well filled thanks to this strong growth - the order book position as of the end of the first quarter amounted to around EUR 130.5 million (previous year: EUR 106.0 million) - prompting the Management Board to be confident that the positive trend in the 2017 financial year can be continued. Specifically, this means that net sales in a range between EUR 180 million and EUR 210 million are expected for 2018. Given efficiency measures already introduced in 2017 and further margin increases in the service business, the EBIT margin is expected to improve sustainably and to be within a range of 3.5 to 5.5 %.

As planned, 2G will publish its audited consolidated financial statements and 2017 annual report on May 18, 2018.

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 harnessed for the decentralised generation and supply of electricity and heating. Deploying its many years of experience, expertise and technological know-how, the innovative CHP technology of 2G is always translated into industrial progress. 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 realised, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalisation 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 31 countries and generated net sales of EUR 189.4 million in the 2017 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, having previously been listed in the "Entry Standard" segment. The share capital amounts to EUR 4,430,000, and is divided into 4,430,000 shares. As of April 2018, company founders Christian Grotholt and Ludger Gausling held a 53.3 % interest in the company, with the free float amounting to 46.7 %.

2018 calendar dates
May 18, 2018 Publication of the consolidated financial statements for the financial year ending December 31, 2017
May 30, 2018 Q1 key figures and business trends
June 7, 2018 Quirin Champions, Frankfurt
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
December 4-5, 2018 Midcap Event, Geneva

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.com