DGAP-News: 2G Energy AG: 2G Energy AG fully confirms corporate strategy with successful business year 2012
(firmenpresse) - DGAP-News: 2G Energy AG / Key word(s): Final Results/Final Results
2G Energy AG: 2G Energy AG fully confirms corporate strategy with
successful business year 2012
31.05.2013 / 07:20
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Corporate News
2G Energy AG fully confirms corporate strategy with successful business
year 2012
- EUR 16.6 million of EBIT generated on EUR 146.5 million of revenue with
a11.3 % EBIT margin
- Revenue share of international business grows from 10 % to 40 %
- Revenue share of natural gas-driven CHPs doubles to 30 %
- Dividend of EUR 0.37 per share proposed
- 2013 outlook: EUR 160 million of revenue and almost constant EBIT
margin
Heek, May 31, 2013 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading
German manufacturers of combined heat and power (CHP) plants, generated EUR
146.5 million of consolidated revenue in the 2012 financial year (previous
year: EUR 167.3 million), according to audited figures. The company
achieved earnings before interest and tax (EBIT) of EUR 16.6 million
(previous year: EUR 19.5 million), representing a continued high EBIT
margin of 11.3 % (previous year: 11.8 %). Consolidated net income stood at
EUR 11.3 million in 2012 (previous year: EUR 13.6 million), and earnings
per share amounted to EUR 2.58 (previous year: EUR 2.98) after deducting
earnings attributable to third parties.
Significant foreign growth, sharp rise in natural gas share
As planned, 2G significantly reduced its dependencies on the German biogas
systems market and subsidies from the German Renewable Energies Act (EEG)
in the year under review. As a consequence, 2G doubled its share of revenue
deriving from natural gas-driven combined heat and power plants (CHPs) to
around 30 % (previous year: 15 %), and international sales grew markedly
from 10 % in the previous year to approximately 40 %. Italy and the USA
comprised the strongest foreign markets in terms of sales. In the USA, 2G
founded it its own manufacturing company in Florida at the start of 2012,
and holds an interest in a sales company.
Christian Grotholt, CEO of 2G Energy AG, assesses the 2012 financial year,
and provides an outlook: 'We can be satisfied with an 11.3 % EBIT margin
that is almost at the previous year's record level. A repeat of the sales
and earnings record arising from the 2011 biogas systems boom, from which
we benefited as a builder of combined heat and power plants, was not to be
expected. We successfully further diversified ourselves both in Germany and
abroad in 2012. With our proprietary developments agenitor 406, avus 500
plus and G-Box 20, we have rapidly gained shares in the growth market for
CHPs. In CHP applications with weak gases such as mine, landfill and sewage
gases, too, our CHPs' top efficiencies are proving persuasive to customers
both in Germany and abroad.'
With a look to the current and coming financial years, CEO Grotholt notes
that, with the conclusion of the capacity expansions for production,
logistics and services at its Heek site in April this year, 2G is able to
double its revenue to around EUR 300 million (2012 bases). Together with
the current optimization and standardization processes across the Group,
the Management Board assumes that this objective, accompanied by a rising
EBIT margin (target: 15 %), will be achieved before the year 2020.
Healthy balance sheetstructure in 2012, equity ratio at 50.4 % after 45.3
%
The balance sheet structure of the 2G Energy Group remained very stable in
the 2012 financial year. Total assets were up by 12.5 % year-on-year to
reach EUR 94.7 million. Non-current assets rose mainly due to buildings and
land added to property, plant and equipment that serves the capacity
expansion at the Heek location. The transformation of the 2G Group into an
international player on the CHP market is reflected in the year-on-year
change in current assets. While receivables comprised a constant proportion
of 24.6 % of total assets (previous year: 24.3 %), inventories increased to
33.1 % of total assets on the balance sheet date (previous year: 22.4 %)
due to special purchasing transactions and to boost the company's ability
to deliver internationally. These measures support the company's entry into
foreign markets and boost sales and service quality. Working capital
consequently rose from EUR 25.3 million to EUR 30.1 million, and cash and
cash equivalents fell from EUR 25.6 million on the previous year's
reporting date to EUR 14.1 million. The 2G Group's consolidated equity
stood at EUR 47.8 million as of the balance sheet date (previous year: EUR
38.2 million), with the equity ratio improving to 50.4 % (previous year:
45.3 %). Bank borrowings include loans to help finance the capacity
expansions at the Heek site.
Cost of materials ratio falls from 75.3 % to 65.4 %
The reduction in the cost of materials ratio from 75.3 % to 65.4 % of total
operating revenue contributed to the good operating result and the 11.3 %
EBIT margin. 2G has increased its vertical range of manufacturing, thereby
reducing third-party input. The hiring of 132 new staff and continuous
training are reflected in an increase in the personnel expense ratio from
6.7 % to 11.5 %. Marketing, operating and administrative expenses rose from
EUR 7.1 million in the previous year to EUR 10.0 million in the year under
review as part of the internationalization of business, especially with the
expansion and establishment of the international service network. The net
financial result stands at almost breakeven. The company incurred EUR 5.1
million of corporation taxes on income (previous year: EUR 5.9 million).
Diversified customer structure
2G enjoys a diversified customer structure in terms of both customer groups
and geographic markets. No individual customer account for more than 5 % of
CHP revenue in 2012. Among the customer groups, resellers, generally biogas
system builders, accounted for the largest revenue share at almost 40 %,
with around half of the CHP systems for this group being exported abroad.
2G generated around 14 % of its sales revenue volume with the
industrial/commercial sectors, 13 % with German energy utility groups, and
around 12 % with farmers. 2G's foreign subsidiaries contributed 16.5 % to
CHP revenue. In the current financial year, 2G is continuing the process of
significantly increasing its shares of the natural gas-driven CHP market,
and is further expanding its revenue shares outside Germany.
Solid start to FY 2013
2G enjoys a solid order book position at the previous year's level of
around EUR 53 million, 33 % of which is derived from abroad, and which is
split approximately 60 % among biogas applications and 40 % among natural
gas applications. The German Engineering Federation (VDMA) reported on an
overall restrained and slightly declining new order intake for the German
mechanical and plant engineering sector for the months of January, February
and March. In the first quarter of 2013, the 2G Energy Group's revenue
amounted to EUR 15.4 million in a somewhat weak economic environment,
especially in Southern Europe. A comparison with the previous year's
quarter (Q1 2012: EUR 25.6 million) also exhibits a shortfall as deferred
revenues from the final quarter of the biogas system boom-driven 2011
financial year were still being booked at the start of 2012. Traditionally,
the first quarters of the year tend to be weak, with the final quarter
being by far the strongest in terms of sales. Earnings before interest and
tax (EBIT) amounted to EUR 0.2 million (previous year: EUR 0.8 million).
The 2G Group's transformation process to become an international market
participant is evident in the higher fixed cost block within its cost
structure at the start of the year.
Outlook: Stable trend continues this year
2G takes overall optimistic view of 2013 business trends, assuming EUR 160
million of consolidated revenue and an almost constant EBIT margin. 2G
expects that the German Renewable Energies Act (EEG) will be adapted to
reflect modified tasks following elections to the Lower House of the German
Parliament in September 2013. In particular, this will boost the
preparedness of German energy utility groups to invest in natural
gas-driven CHP systems. 2G also anticipates a signal effect for other
European countries, which should deliver further impulses for expansion
abroad. In parallel with the foreign business, customer service is to be
expanded internationally to generate around 25 % of revenue in the medium
term. 2G aims to make the USA its strongest international sales market
outside Germany by the end of the current financial year.
Management and Supervisory boards propose EUR 0.37 dividend
Following the approval and adoption of the 2012 financial statements, the
Supervisory Board at its meeting on May 27, 2013, concurred with the
Management Board's proposal to the Annual General Meeting to again pay a
EUR 0.37 dividend per share for the 2012 financial year.
Download of 2012 annual report
The company is making its detailed 2012 annual report available for
downloading at http://www.2-g.de/?langid=1&seitenid=86 (German version) and
http://www.2-g.de/?langid=2&seitenid=86 (English version, available from
June 5, 2013).
About 2G Energy AG
2G Energy AG is amongst the world's leading suppliers of cogeneration
systems for decentralized energy supply by means of combined heat and
power. The Company's product portfolio includes systems with an electrical
capacity between 20 kW and 2,000 kW for the operation with natural gas,
biogas or bio methane. So far, 2G was able to successfully install more
than 3,500 modules in 25 countries. 2G serves a wide range of customers
from farmers to industrial clients, municipalities, real estate industry up
to big utility companies. The high level of customer satisfaction is
founded on the close-knit service network as well as the high technical
quality and performance of 2G power stations. Thanks to the combined heat
and power performance they achieve an overall degree of efficiency between
85 percent and well above 90 percent. To further enlarge the
technologically leadership the Company continuously invests in its R&D
activities. Next to the construction of combined heat and power stations,
2G Energy offers integrated solutions reaching from the planning stage and
installations to serial service and maintenance work. Due to its
projectable and scalable availability combined heat and power stations
shall play a crucial role as part of intelligent networked energy systems -
so called virtual power stations - within the ongoing switch to clean
energy.
2G Energy is a public listed company (ISIN DE000A0HL8N9) in the Entry
Standard of Deutsche Börse AG a segment within the Open Market (regulated
unofficial market). It has a capital stock of 4,430,000 EUR, equalling
4,430,000 shares. Main shareholders are the two company founders with
together 58.9 %, freefloat is 41.1 %. In the 2012 financial year (January 1
to December 31), 2G Energy generated EUR 146.5 million of revenue, EUR 16.6
million of earnings before interest and tax (EBIT), and EUR 11.3 million of
net income. The company employs around 435 staff.
Financial calendar 2013
May 31, 2013 Publication of Group financial report as of Dec. 31, 2012
July, 17 2013 Ordinary AGM, Münster
Sept. 30, 2013 Publication of Group H1 financial report as of June 30,
2013
Nov. 12/13, 2013 Eigenkapitalforum Deutsche Börse AG, Frankfurt
Further information
IR contact:
2G Energy AG
Benzstr. 3, 48619 Heek, Germany
Telefon: +49 2568 93 47-2795
Telefax: +49 2568 93 47-15
email: ir(at)2-g.de
www.2-g.de
End of Corporate News
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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(at)2-g.de
Internet: www.2-g.de
ISIN: DE000A0HL8N9
WKN: A0HL8N
Listed: Freiverkehr in Berlin, Düsseldorf, Stuttgart; Frankfurt in
Open Market (Entry Standard)
End of News DGAP News-Service
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