DGAP-News

2G Energy AG: CORRECTION: Dynamic start to FY 2014 with EUR 115 million order book position

DGAP-News: 2G Energy AG / Key word(s): Final Results/Forecast
2G Energy AG: CORRECTION: Dynamic start to FY 2014 with EUR 115
million order book position

28.05.2014 / 08:30

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Corporate News

2G Energy AG: Dynamic start to FY 2014 with EUR 115 million order book
position

- Demand for natural gas-driven CHP systems registers significant growth
in FY 2013

- Service business's share of revenue rises to 22 % in 2013

- Equity ratio improves further to 53.2 %

- Dividend of EUR 0.37 per share will be proposed to AGM

- Q1 2014: Revenue of EUR 20 million, EBIT of EUR minus 0.9 million - in
line with expectations

- FY 2014 forecast: Revenue of between EUR 145 million and EUR 165
million, EBIT margin between 6 % and 8 %

Heek, May 28, 2014 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading
German manufacturers of combined heat and power (CHP) plants, generated EUR
126.1 million of consolidated revenue in the 2013 financial year (as of
December 31) according to audited figures (previous year: EUR 146.5
million). Total output of around EUR 137.5 million is at the previous
year's level of EUR 139.2 million due to an increase in work in progress of
approximately EUR 11.3 million (previous year: approximately EUR 7.3
million reduction in work in progress). The company generated EUR 3.1
million of earnings before interest and tax (EBIT) on the basis of German
Commercial Code (HGB) accounting (previous year: EUR 16.5 million). This
represents a 2.5 % EBIT margin (previous year: 11.3 %). Consolidated net
income amounted to EUR 1.0 million in 2013 (previous year: EUR 11.3
million). Earnings per share stood at EUR 0.20 after deducting
non-controlling interests (previous year: EUR 2.58).

FY 2013 earnings characterized by weak H1
Revenue and earnings in the 2013 financial year were characterized by a
first half of the year that fell significantly short of expectations. This
reflected continued recessionary economic situation in Southern Europe,
cuts to feed-in and subsidy schemes, as well as barriers to financing and
market entry, and business trends in the USA that initially lagged
expectations. The catch-up effect during the second half the year in new
order intake from both Germany and abroad was no longer sufficient to allow
the company to reach its optimistic 2013 targets. During the year under
review, 2G continued to deliberately invest on an anti-cyclical basis in
key future growth areas. These included technological improvements of CHP
systems for natural gas, biogas and lean gas operations, and capacity