DGAP-News

2G Energy AG reports solid business progress in line with expectations in H1 2015

DGAP-News: 2G Energy AG / Key word(s): Half Year Results/Alliance
2G Energy AG reports solid business progress in line with expectations
in H1 2015

24.09.2015 / 07:30

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- 2G strengthens business abroad: good business trends in the USA,
partnership with one of the global leaders in optimized resource
management (water, waste and energy)

- Service business reaches 39 percent sales revenue share

- Consolidated sales revenue of the EUR 59.0 million (previous year: EUR
52.2 million), total operating revenue of EUR 62.5 million (previous
year: EUR 86.5 million), and EBIT at EUR -3.9 million (previous year:
EUR -0.5 million)

- FY 2015 forecast adjusted: Earnings expectation reduced to low positive
EBIT figure (previously 5 % to 7 % EBIT margin); sales revenue target
confirmed EUR 140 million to EUR 160 million

Heek, September 24, 2015 - 2G Energy AG (ISIN DE000A0HL8N9), one of the
leading German manufacturers of combined heat and power (CHP) systems,
generated consolidated sales revenue of EUR 59.0 million as of 30 June 2015
(previous year: EUR 52.2 million), reflecting 13 % growth. 2G Cenergy Inc.,
the US subsidiary that was fully consolidated for the first time,
contributed EUR 4.1 million in this context. Total operating revenue stood
at EUR 62.5 million (previous year: EUR 86.5 million). The higher total
operating revenue in the previous year arose from deliveries and services
deriving from many accelerated CHP plant orders for the German market
before the amendment to the German Renewable Energies Act (EEG) came into
force on 1 August 2014. Sales performed well in markets outside Germany
between January and June 2015, especially in the USA, the UK and Japan. 2G
has been investing continuously in expanding its international business and
further optimising its operating and organisational processes during the
reporting period, and has been leveraging synergies, especially in the USA.
These measures were accompanied by cost adjustments both in Germany and at
the foreign subsidiaries. This resulted in one-off effects in the form of
higher legal and consultancy costs, and expenses for special personnel
measures. An impairment loss was also applied for the first time to the
goodwill of 2G Cenergy following the full takeover of this company in
February 2015. Due to seasonal effects and effects relating to the
reporting date, the company reports a result before interest and tax (EBIT)
of EUR -3.9 million as of 30 June 2015 (previous year: EUR -0.5 million).
The Group incurred a consolidated net loss of EUR 4.3 million in the first
half of 2015 compared with a consolidated net loss of EUR 1.4 million in