DGAP-News

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

the previous year. The loss per share (EPS) stood at EUR -0.96 (previous
year: EUR -0.40 per share), after deducting profits/losses attributable to
non-controlling interests.

As expected, German companies' ordering patterns for CHP systems were
reticent during the first two quarters given the forthcoming amendment of
the German Combined Heat and Power Generation Act (KWKG) in 2016. A
seasonal trend is emerging, with a greater number of orders at the start of
the heating period, and utilisation of production capacities in the second
half of 2015, especially in the fourth quarter. The advancing consolidation
and transformation within the sector is also affecting sales prices and
margins. In addition, due to the uptrend in business in the second half the
year, 2G had to maintain capacities during the preceding months in order to
ensure punctual building, delivery and commissioning of 2G systems. The
lack of even distribution of orders over the course of the business year,
and the fact that production always occurs on an order-related basis, make
it very difficult to manage manufacturing capacity utilisation.

2gs growing business abroad is not yet able to offset major fluctuations in
orders in Germany. 2G has invested in expanding its international
business and in further optimising its processes in order to achieve this
goal more quickly. Overall, the future-oriented investments that have been
realised, the reorganisation measures that have been implemented, and price
movements due to somewhat restrained demand in Germany, have incurred costs
and burdened profitability.

For this reason, the Management Board is adjusting the earnings forecast
for the full 2015 year, which it published at the end of May, to a low
positive EBIT figure (previous forecast: EBIT margin of 5 % to 7 %), and is
confirming its estimate for sales revenue of between EUR 140 million and
EUR 160 million.

A good order book position with a growing international component is also
emerging for H2
The order book position for CHP orders stood at around EUR 76 million as of
30 June 2015 (previous year: EUR 112.3 million, due to accelerated
purchasing effects reflecting the 2014 EEG amendment). This includes a
verified order book position from the USA of EUR 16.4 million. The order
book position is being renewed at a stable, high level. Major national and
international plant construction projects in the tender process enjoy very
good prospects of 2G participation. Order book positions from the USA, the