DGAP-News

2G Energy AG shows considerably increased total operating revenue and improved earnings in the first half of 2016

DGAP-News: 2G Energy AG / Key word(s): Half Year Results
2G Energy AG shows considerably increased total operating revenue and
improved earnings in the first half of 2016

27.09.2016 / 08:05
The issuer is solely responsible for the content of this announcement.

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- 2G grew in the first half of 2016: consolidated sales revenues rose by
8% to EUR 63.8 million and total operating revenue increased by 37% to
EUR 85.5 million.

- The EBIT as of June 30 improved to minus EUR 2.4 million (previous
year: minus EUR 3.9 million) and is marked by a large inventory build-
up during the first half of the year .

- The order book position as of June 30, 2016 grew to EUR 106.4 million
(previous year: EUR 76.2 million).

2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading
manufacturers of gas driven combined heat and power plants (CHP systems),
increased consolidated sales revenues in the first half-year of 2016 to EUR
63.8 million, and total operating revenue to EUR 85.5 million. Due to the
increased inventory of work-in-progress, which was further reflected in the
large order book position, the company - as in previous years - still
showed a negative EBIT result as of the half-yearly balance sheet date.
However, the EBIT of minus EUR 2.4 million as of June 30, 2016 is
considerably improved compared to the first six months of 2015 (minus EUR
3.9 million). 2G expects a positive annual result at the upper end of the
earnings forecast due to the final invoices of 2G CHP plants taking place
by the end of the year, and the strong business trend in the current second
half-year. As a result of the existing large order book, production
capacity in 2-shift operation is fully occupied well into 2017.

Sales revenue and total operating revenue rise as expected in the first
half-year
As expected, 2G increased its consolidated sales revenue in the first half-
year of 2016 by 8.1% from EUR 59.0 million in the first half of the
previous year to EUR 63.8 million. Total operating revenue increased
significantly more strongly by 36.7% from EUR 62.5 million to EUR 85.5
million. 2G began 2016 with a tailwind, as an order book of EUR 85.5
million, of which 60% had not yet been started, was carried forward into
the current year as a surplus from 2015. The growth surge in total
operating revenue is based on inventory increases amounting to EUR 21.2
million (previous year: EUR 3.0 million) in ongoing CHP projects. A
considerable proportion of the inventory increases will be finally invoiced