- Net sales rise to EUR 141.5 million in the first three quarters of 2019 (previous year: EUR 131.6 million)

- Earnings before interest and tax (EBIT) grow to EUR 4.9 million (EUR 4.0 million).

- Total operating revenue increases from EUR 156.1 million to EUR 161.3 million

- Dynamic new order intake in September and October of EUR 27.9 million (previous year EUR 18.3 million, +52 %) ensures continued high order book position of EUR 157.2 million

- Management Board confirms previous net sales forecast of EUR 220 million to EUR 230 million (with EBIT margin between 5.5 % and 7.0 %) and expects net sales of EUR 230-250 million for 2020

- Contract with CFO Friedrich Pehle extended

The positive business trend of 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, continued during the third quarter of the 2019 financial year. During the first nine months of the year, consolidated net sales were up by 7.5 % to reach EUR 141.5 million (previous year: EUR 131.6 million) and total operating revenue rose by 3.3 % to EUR 161.3 million (previous year: EUR 156.1 million).

2G grew its consolidated earnings before interest and tax (EBIT) to EUR 4.9 million (previous year: EUR 4.0 million), corresponding to a 3.5 % EBIT margin (previous year: 3.0 %). As in previous years, the Management Board assumes for the current fourth quarter that CHP systems installed and accepted by December 31, 2019 will generate high net sales and earnings contributions. On this basis, the Management Board confirms its net sales forecast for the current financial year of between EUR 220 million and EUR 230 million and continues to expect an EBIT margin between 5.5 % and 7.0 %.

New order intake as of the end of October amounted to a total of EUR 118.9 million (previous year: EUR 142.1 million). While monthly new order intake in the first eight months of the current year was generally well below the previous year's level - reflecting the special situation in the German biogas market's business cycle - it reaccelerated significantly in September (EUR 13.8 million compared with EUR 6.7 million in 2018) and October (EUR 14.1 million compared with EUR 11.6 million).
New order intake generated abroad rose by 13 % from EUR 50.9 million to EUR 57.6 million at the end of October, with the markets in North and Central America (EUR 19.5 million compared with EUR 9.8 million in the previous year) and in the UK (EUR 12.9 million compared with EUR 3.7 million in the previous year) performing particularly well.

Further sales growth expected
The positive trend in markets abroad underscores the Group's strategic approach of becoming independent of individual markets and further diversifying and efficiently structuring CHP and service sales through the expansion of its global partner network. Thanks to a high order book position of EUR 157.2 million at the end of October, a continued stable level of new order intake and constant growth in the service business, the Management Board expects net sales of between EUR 230 million and EUR 250 million for next year.

By 2024, 2G expects to increase annual net sales to around EUR 300 million. In addition to both direct and partner sales of CHP plants and services, industrial cooperations will also make their contribution to this in the medium and long term.

Contract with CFO Friedrich Pehle extended
The Supervisory Board has extended the contract with CFO Friedrich Pehle by three years, in other words, until November 2023, thereby continuously ensuring the high level of stability in the management of the company.

2G company portrait
2G Energy AG is an internationally leading full service provider of combined heat and power plants (CHP) with electric output between 20 kW and 2,000 kW, which are deployed for the decentralized generation and supply of electricity and heating. 2G is consistently expanding its technology leadership through continuous research and development work, both in gas engine technology for natural gas, biogas and synthetic gas applications (e.g. hydrogen), as well as in specific software development. In particular, this product range, which is based on thousands of plants realized, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These include rising energy demand accompanied at the same time by the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and creates a high barrier to market entry for competitors.

The cogeneration of mechanical energy and heating/cooling make CHP technology more efficient and more environmentally compatible than conventional energy production methods. Compared with conventional electricity generation, CHP technology saves up to 40 percent of primary energy, and emits up to 60 percent less carbon dioxide and nitrogen oxide. 2G customers thereby benefit consistently from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G employs around 640 staff at its headquarters in Heek, Germany, in St. Augustine, USA, as well as at five other European locations. The company is active in a total of 50 countries and generated net sales of EUR 209.8 million in the 2018 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange. The share capital amounts to EUR 4,430,000 and is divided into 4,430,000 shares. As of June 30, 2019, company founders Christian Grotholt and Ludger Gausling held a 53.0 % interest in the company, with the free float amounting to 47.0 %.

2019/2020 calendar dates
November 25-27                   German Equity Capital Forum 2019, Frankfurt am Main
January 16                            Pareto Securities Power and Renewable Energy Conference, Oslo
April 2                                    Preliminary results for the FY ending December 31, 2019, 2020 guidance
May 8                                    Publication of the consolidated financial statements for the FY 2019
May 18-19                            Spring conference, Frankfurt am Main
May 28                                 Q1 key figures and business trends
June 23                                Ordinary AGM, Ahaus
September 17                      Consolidated financial statements as of June 30, 2020
November 23                       Q3 key figures and business trends

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Telephone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email:
Internet: -g.de