DGAP-News: Daldrup & Söhne AG posts positive half-year results

PRESS RELEASE

Daldrup & Söhne AG posts positive half-year results

- EBIT increases by 142 % to 1.2 million Euros

- Total output nearly unchanged at 22.0 million Euros

- Excellent order situation ensures full utilization of capacity into 2020

- Landau geothermal power plant: inspection work needed into 4th quarter 2018

- Taufkirchen geothermal power plant: expansion of electricity generation capacity underway

- Neuried geothermal power plant: work on project to start shortly

- 2018 forecast confirmed: revenues of ca. 40 million Euros; EBIT margin between 2 - 5%

Grünwald / Ascheberg, Germany, October 4, 2018 - The drilling technology and geothermics specialist Daldrup & Söhne AG (ISIN DE0007830572) generated a consolidated total output of EUR 22.0 million Euros during the first half of 2018 (previous year: 22.8 million Euros). The company substantially increased its earnings before taxes and interest (EBIT) from 0.5 million Euros during the first half of 2017 to 1.2 million Euros during the period under review. The business situation between January and June 2018 was highly positive thanks to a well-filled order book, full utilization of capacity in all business divisions and ongoing major geothermal drilling projects for Stadtwerke Munich as well as in Belgium and Switzerland. The demand for drilling services and turnkey geothermal power plants continues to be strong from both investors and municipal authorities. The volume of orders stood at 62 million Euros as of the end of September 2018, which means the Daldrup Group will be working to capacity into 2020.

EBITDA was 3.1 million Euros as of the due date (previous year: 2.3 million Euros). H1 2018 profit after taxes was 107,000 Euros (168,000 Euros) with earnings per share (EPS) of 0.02 Euros (0.03 Euros).

Project corporation for Taufkirchen geothermal power plant fully consolidated for the first time
The first-time full consolidation of the power plant business activities for the Taufkirchen site has a significant impact on the consolidated balance sheet as of June 30, 2018. The Daldrup Group has acquired additional shares in Kraftwerksgesellschaft Taufkirchen during the period under review and now holds 55 percent of the company's shares. The unit's consolidation contributes to a substantial rise in Daldrup & Söhne's balance sheet total to 158.8 million Euros as of the reporting date compared to 101.7 million Euros on December 31, 2017. Total fixed assets increased to 118.6 million Euros (59.6 million Euros) following the full consolidation of the Taufkirchen power plant business activities. Both the activities of geox GmbH (the operating company for the Landau power plant) and of the Taufkirchen project corporation are now fully consolidated and are no longer reported at-equity in the company's financial statements.

Equity ratio remains solid at 46.2 %
Despite the first-time consolidation, the balance sheet continues to be solid with an equity ratio of 46.2 % (December 31, 2017: 45.3 %). Both the subscribed capital (6.0 million Euros compared to 5.4 million Euros a year earlier) and the capital reserve (36.4 million Euros after 30.5 million Euros the previous year) increased following a successful equity issue in Q1. Liabilities rose to 73.2 million Euros compared to the December 31, 2017, balance sheet date when they were 48.5 million Euros. Much of this is due to financing the acquisition of shares in the Taufkirchen power plant project. Liabilities to credit institutions were reduced by 26.5 %, resulting in a significant drop to 10.5 million Euros (2017: 14.5 million Euros).

Planned expansion of electricity generation capacity at Taufkirchen geothermal power plant to start
Following the commissioning of its first evaporator and the start of electricity generation at the Taufkirchen geothermal power plant, the second stage of the plant's planned capacity increase is about to start. This will require a second evaporator, which will be delivered and installed in the coming months. From the current perspective, the company will be able to begin ramping up to full electricity generation capacity once the heating period gradually winds down in spring 2019. At that time, the plant will contribute significantly to consolidated cash flow for the first time.

Successful first half of 2018 for Landau geothermal power plant
The Landau geothermal power plant has successfully generated energy during the first half of 2018, beating expectations for the first six months of the year. Routine inspection work started during the summer and is expected to be completed during the next two to three weeks.

Forecast for 2018 confirmed
The volume of orders (around 62 million Euros) and the high likelihood of a pipeline project worth ca. 105 million Euros being commissioned reflect the overall strong demand for drilling services and geothermal power plant projects in Central Europe. As a well-established competitor that has realized more than 40 major geothermal drillings, Daldrup is in an excellent position to benefit from the rising demand for such services. The company's next own power plant project is about to get underway following the recent award of the concession for the exploratory field in the Neuried claim. Thanks to the positive economic environment, the Management Board of Daldrup & Söhne AG is optimistic the company will achieve the forecast of around 40 million Euros total output with a consolidated EBIT margin between 2 % and 5 %. In the context of the predominant project business, this forecast is subject to the successful completion of some large drilling orders and the accounting effect on sales and earnings at the balance sheet date at the latest.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 70 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The majority stake in Geysir Europe GmbH also gives the Daldrup Group its own fields of experience in the exploration of geothermal energy in the Bavarian Molasse Basin and in the Upper Rhine Plain. The existing project management and power station expertise means that all stages of value creation can be covered for a deep geothermics project.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment in the open market of the Frankfurt Stock Exchange).

Disclaimer
This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America ("USA"), Canada, Australia or Japan.

Press & Investor Relations Contact:

Daldrup & Söhne AG
Falk v. Kriegsheim
Phone +49 (0)2593-9593-29
Fax +49 (0)2593-9593-60
Bavariafilmplatz 7 ir@daldrup.eu
82031 Grünwald/Geiselgasteig www.daldrup.eu