DGAP-News

2G Energy AG: FY 2014 sales revenue forecasts increased to over EUR 165 million; EBIT margin forecasts of 6 to 8 % confirmed - Seite 2

stable, in line with expectations. 2G's US business is moving in a sideways
trend at a low level, as the CHP market in the USA remains heterogeneous
and lacks decisive impulses for a jump in sales. The Group incurred a
consolidated net loss of EUR 1.4 million in the first half of 2014
(previous year: consolidated net loss of EUR 1.6 million). The loss per
share (EPS) stood at EUR -0.40 (previous year: EUR -0.36 per share), after
deducting profits/losses attributable to non-controlling shareholders.

Good business in Germany, differing trends on foreign market
The first half of 2014 was characterized for 2G by a boost in orders for
CHP systems as the result of the amendment to the German Renewable Energies
Act (EEG) that came into force on August 1. High new order intake levels in
February, March and April prevented 2G from accepting any more orders from
mid-April with delivery deadlines by July 31, 2014. Capacities were fully
utilized, and some production was processed with three-shift operations
including work on Sundays and public holidays. As of the June 30 reporting
date, CHP sales revenue in Germany was split approximately 48 % among
biogas driven systems and 52 % among natural gas driven CHP systems. CHP
system sales revenue was 53 % attributable to Germany and 47 % attributable
internationally. In countries outside Germany, business with biogas driven
CHP systems continued to dominate at around 84 %. A higher level of new
order intake was recorded in the United Kingdom due to the adjustment at
the end of the third quarter to feed-in compensation for electricity
generated from biogas systems. At the same time, the transformation process
toward the utilization natural gas driven CHP systems has started on more
developed foreign markets. This is reflected in new order intake in this
area from Italy, the USA and, in particular, the United Kingdom.

Overall, Group sales revenue in the first half-year was 61 % attributable
to sales of CHP systems, 29 % to service, and 10 % to after sales. 2G
generated 71 % of its total sales revenue in Germany (previous year: 84 %),
and 29 % abroad (previous year: 16 %). This view is nevertheless somewhat
skewed as many projects in Germany are still under construction, and will
not become effective in terms of sales revenue and earnings until the
second half of 2014.

2G's solid balance sheet structure secures financial independency
The balance sheet structure of the 2G Energy Group continued to be very
stable as of June 30, 2014. Total assets grew to reach EUR 115.1 million,
up by 30 % compared with the December 31, 2013 balance sheet date. This is