DGAP-News

2G Energy AG: Dynamic start to FY 2016 with high order book position home and abroad - Seite 3

a regional basis for the North American market and parts of Europe, as well
as more direct proximity to customers. The share of revenue generated
abroad is to be expanded continuously further over the next two years.

2015 has been a year of transition - diversification strategy advanced
successfully
The 2015 business year represented a year of transition for the company
between the 2014 amendment to the German Renewable Energies Act (EEG) and
the 2016 Amendment to the German Cogeneration Act (KWK-G), which resulted
in fluctuations in CHP orders, and consequently production utilization, on
the German market. 2G maintained capacities to ensure it could meet
deadlines in producing and commissioning 2G systems and in delivering
service. Taken together with around EUR 3.0 million of one-off legal,
consulting and personnel costs for adjustment and restructuring measures at
subsidiaries in Germany and abroad, this approach weighed down on results.
Positive trends were reflected in the increase in the share of service
business to 34 % of revenue (20 %), and the rise in the export share of CHP
systems to 35 % (28 %). Across all business areas, 2G boosted its export
share to 27 % of revenue (21 %). 2G is thereby underscoring the
diversification strategy that it has continuously advanced of growing
across various gas types, regional markets, sectors and products, and of
becoming largely independent of individual markets and regulatory changes.

Service business grows further
Compared with the previous year, the percentage distribution of revenue
within the corporate areas of CHP systems, service and after-sales shifted
towards the service business in the reporting year. The proportion of
revenue from selling CHP systems reduced to 60 % (72 %), the service
business share increased to 34 %, by contrast (20 %), and the revenue share
from the after-sales business fell from 8 % in the previous year to 6 %. In
particular, servicing of 2G systems is registering significant expansion as
a result of the installed base of new plants. At EUR 52.1 million, 2G
generated a 40 % higher sales revenue contribution in 2015 compared with
the previous year. For 2G, this signifies a stabilizing level with
continuous and predictable cash flows that are independent of short-term
sales trends or regulatory factors.

Cost of materials ratio falls, personal expense ratio rises
The cost of materials ratio were reduced from 70.7 % to 65.0 % of total
operating revenue. Compared with the last two balance sheet dates, the