DGAP-News

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

in the second half of 2016, and will thus become effective in terms of
sales and earnings in accordance with HGB (German Commercial Code)
accounting. Consequently, the result as of June 30, 2016 does not show the
real earnings strength. Against the background of the large inventory
buildup in the period under review, the cost of materials ratio (relative
to total operating revenue) increased slightly to 74.0% (previous year:
71.2%). On the other hand, the personnel expense ratio fell considerably
from 22.8% to 17.4% due to higher production output performance.

Overall, the distribution of the consolidated revenues of EUR 63.8 million
in the first half of the year is 47.0% (EUR 19.8 million) attributable to
CHP plant sales, 43.0% or EUR 27.6 million to Service and spare parts and
10.0% (EUR 6.0 million) accounted for by the After Sales area. The export
share was 20% (previous year: 25%). It should be noted here that the
considerably increased service revenue is generated so far largely in
Germany.

Order book characterized by high demand for biogas operated CHP plants at
home and abroad
The demand trend in Germany and other countries remained stable during the
first half of the year. The order book position grew from EUR 85.5 million
at the start of the year to EUR 106.4 million as of June 30, 2016, which is
39.6% above the previous year's value of EUR 76.2 million. The export share
of the CHP order book is 41.4%, buoyed especially by very successful
business in Great Britain, where the order book almost doubled from EUR 9.4
million in the previous year to EUR 18.2 million.

Balance sheet ratios remain stable
The balance sheet structure is still characterized by high stability and
solvency. Compared to the balance sheet date of December 31, 2015, total
assets rose by 11.5 % to EUR 107.4 million. Significant changes occurred in
current assets due to a EUR 19.2 million increase in work-in-progress to
EUR 45.5 million. Accounts receivable and other assets decreased by EUR 3.0
million to EUR 25.6 million, while liquidity (cash on hand, cash in banks)
rose by EUR 4.7 million to EUR 14.8 million.

Strong business performance in the second half year
Taking into account the continuous improvement processes in operating
procedures and the paradigm change to a sales and service partner concept,
the Management Board is confident that the 2G Group's true value has never
been higher than in the current year 2016. This value will consolidate
further in the next few quarters through the continually growing
internationalization of the business, pushing forward the digitalization of
2G power plants and services, and strengthening profitability. Against the