DGAP-News: 2G Energy AG / Key word(s): Half Year Results 2G Energy AG lifts total operating revenue to EUR 63.9 million in Q2 2021-09-06 / 08:30 The issuer is solely responsible for the content of this announcement.

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2G Energy AG lifts total operating revenue to EUR 63.9 million in Q2

- H1 net sales increase to EUR 106.9 million (H1 2020: EUR 85.6 million); H1 total operating revenue amounts to EUR 111.5 million (H1 2020: EUR 115.5 million)

- EBIT at previous year's level of EUR 2.3 million

- Inventories significantly expanded to safeguard production (+29%), liquidity nevertheless increased

Heek, September 6, 2021 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, boosted its net sales by EUR 21.3 million to EUR 106.9 million in the first half of 2021 (+24.9 %), as already reported in the corporate news release of August 26. HJS Motoren GmbH (HJS), which was fully consolidated for the first time, contributed EUR 4.1 million to this sales growth.

Coronavirus and bottlenecks on the procurement side characterize first half of the year On the production side, the first half of the year was again dominated by coronavirus protection measures. For infection control reasons, at the start of the year 2G had extended the works holidays by one week. In addition, organizational measures are still in place which to date have successfully prevented the coronavirus pandemic from spreading to the workforce. In addition to purely internal measures, such as working within clearly defined teams, a significant reduction in recourse to external labor deserves particular mention. The second quarter was characterized by increasingly noticeable bottlenecks in procurement markets, which necessitated constant rescheduling in order to be able to maintain the high level of final invoices submitted. Timely stockpiling and a high level of flexibility within the workforce have to date prevented promised customer deadlines from having to be postponed. In the second quarter, total operating revenue increased slightly by EUR 0.8 million. However, over the first half of the year, total operating revenue decreased by 3.4 % to EUR 111.5 million under these difficult conditions. Supported by strong cash flow, a generous procurement and stockpiling program was launched in order to largely avert the need for reallocations due to bottlenecks in the second half of the year.

Costs of materials ratio falls, personal expense ratio rises The cost of materials ratio improved by 4.4 percentage points to 65.1 %, of which around one percentage point is attributable to the reduced recourse made to external labor in favor of the greater utilization of the company's own staff. The remaining approximately 3.4 % points are due to a better product and market mix, to which HJS contributed around 0.5 %.

Personnel expenses were up by EUR 3.2 million (+14.5 %) to EUR 25.1 million. Of this, EUR 1.1 million is accounted for by HJS employees, while around EUR 1.0 million is related to the aforementioned replacement of external labor with in-house staff. The remaining additional costs are distributed over additional sales and service personnel at various Group companies.

Other operating expenses rose by EUR 1.2 million to EUR 11.2 million. Increased commission and sales expenses due to the very sharp rise in sales accounted for EUR 0.5 million, working from home offices and other measures in the hardware and software area required additional expenditure of EUR 0.3 million, and HJS contributed EUR 0.4 million to the absolute increase in costs.

EBIT at prior-year level, 2021 forecast confirmed EBIT reached the previous year's level at EUR 2.3 million, corresponding to an EBIT margin of 2.1 % (H1 2020: 2.7 %). In light of the measures that have been initiated and the fact that output has already accelerated over recent weeks, the Management Board continues to expect total operating revenue for the year as a whole to be at least on a par with the previous year and, as previously announced, to generate net sales of between EUR 250 million and EUR 260 million and an EBIT margin of between 6.0 % and 7.5 %.

Strong operating cash flow and capital increase lead to strong rise in liquidity Inventories rose significantly in the course of the first half of the year (EUR +17.4 million; +29 %), with raw materials and supplies accounting for the largest share with an increase of EUR 12.6 million. By contrast, prepayments received led to a cash inflow of EUR 13.6 million. A total of EUR 5.5 million was released through a reduction in operating working capital. In conjunction with the capital increase (cash inflow of EUR 5.3 million) carried out in the first quarter, 2G achieved an overall strengthening of liquidity, which amounted to EUR 18.4 million as of June 30.

2G will publish the full half-year report next Thursday, September 9.

New order intake remains brisk At EUR 13.0 million, in July 2G again recorded new order intake well above the previous year's level (EUR 9.3 million). Foreign business made a significant contribution of EUR 6.7 million, or 52 %. On a full-year view, new order intake thereby amounts to EUR 104.8 million (previous year: EUR 94.9 million; + 10.4 %). 2G company portrait

The 2G Energy AG Group is an internationally leading manufacturer of decentralized energy supply systems. With the development, production and technical installation as well as digital grid integration of combined heat and power systems (CHPs), the company offers comprehensive solutions in the growth market for highly efficient CHPs. Aftersales and maintenance services comprise an important additional performance criterion. The product range especially includes CHP modules in the 20 kW and 4,500 kW range for operation utilizing natural gas, biogas, as well as other lean gases and hydrogen. Worldwide, more than 6,500 installed 2G systems in various applications supply electrical and thermal energy to a broad spectrum of customers including companies in the housing industry, agriculture, commercial and industrial companies, public energy utilities, and municipal and local government authorities.

2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional energy production methods, especially when, for example, hydrogen of regenerative origin is harnessed as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts, especially in the deployment of hydrogen engines. 2G's customers thereby derive consistent benefits from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G is consistently expanding its technological leadership through continuous research and development work, both in gas engine technology for natural gas, hydrogen and biogas applications, as well as in specific software development. 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 establishes a high barrier to market entry for competitors.

2G employs around 700 staff at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 247 million in the 2020 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. 2021 calendar dates September 6-7 EF Autumn Conference (virtual) September 9 Consolidated financial statements as of June 30, 2021 September 23 Virtual company presentation, SdK November 18 Q3 key figures and business trends November 22-24 German Equity Forum (virtual)

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

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2021-09-06 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

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Language:     English 
Company:      2G Energy AG 
              Benzstr. 3 
              48619 Heek 
              Germany 
Phone:        +49 (0)2568-9347-0 
Fax:          +49 (0)2568-9347-15 
E-mail:       service@2-g.de 
Internet:     www.2-g.de 
ISIN:         DE000A0HL8N9 
WKN:          A0HL8N 
Indices:      Scale 30 
Listed:       Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange 
EQS News ID:  1231287 
 
End of News   DGAP News Service 
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1231287 2021-09-06

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September 06, 2021 02:30 ET (06:30 GMT)