DGAP-News: 2G Energy AG grows fourth-quarter new order intake by 41% (EUR 52.1 million; previous year: EUR 36.8 million)

2G Energy AG grows fourth-quarter new order intake by 41% (EUR 52.1 million; previous year: EUR 36.8 million)

- New order intake from abroad up 71% (Q4 2021: EUR 26.8 million; previous year: EUR 15.7 million)

- Domestic new order intake up 20% (Q4 2021: EUR 25.3 million; previous year: EUR 21.1 million)

- Sales forecast 2022 raised to a range between EUR 280 and 310 million (previously: between EUR 260 and 290 million)

- Assembly of small CHP systems and switchgear cabinets converted to flow line production

Heek, January 20, 2022 - 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, continued on its growth path in the fourth quarter of 2021 and acquired new order intake of EUR 52.1 million (previous year: EUR 36.9 million). With the exception of Asia, all sales regions recorded strong demand. In Germany, new order intake was up by 20%, and in the rest of Europe by 85%. The economic recovery also consolidated in North and Central America, with partners and end customers ordering CHP systems worth EUR 7.8 million, representing an increase of 72%. For the first time since the first quarter of 2021, the foreign share at 51% again exceeded the domestic share.

The details of the composition of new order intake in the past quarter are as follows:

"Strong growth in demand for highly innovative solutions that are also H2-ready, which was already evident in Germany and Europe in the third quarter, has now reached North and Central America," notes Christian Grotholt, CEO of 2G Energy AG. "We are pleased that our strategy is continuing to bear fruit - in other words, leveraging the momentum of a growing home market while also increasing our export ratio. This makes us increasingly less independent on local markets and secures the continuity of our expanding production capacities."

The Management Board considers it too early to assess the measures planned by the new German government, some of which have already been presented in outline. It is clear that various policy initiatives will continue to drive demand in Germany and Europe. However, it remains unclear when and how strong this surge in demand will be.

On a full-year basis, new order intake increased by EUR 40.7 million (+27% year-on-year) to reach a total of EUR 189.1 million (previous year: EUR 148.3 million). At 49% to 51%, the distribution between foreign and domestic markets is almost equal.

On the basis of preliminary figures, the order book position at the start of 2022 looks set to exceed EUR 150 million, which will certainly surpass the previous high at the beginning of 2019 (EUR 131.5 million). In view of this and the additional orders expected for new installations and aftersales, the Management Board raised its sales forecast 2022 to a range between EUR 280 and 310 million (previously EUR 260 to 290 million).

Assembly of small CHP systems (up to 50 kW electrical output) and switchgear cabinets converted to flow line production
Both the Management Board and workforce have been working for many years on the introduction of collaborative, quality-oriented and scalable processes. Numerous improvements have been implemented to this end, including parts supply in assembly, which has been order-based since mid-2021, depending on the progress of assembly. Engine assembly is a further example, where quality assurance measures and controls have been raised to industry standards.

In the fourth quarter of 2021, assembly processes for small CHP systems, as previously for switchgear cabinets, have now been reorganized so that previous stationary assembly has been converted into genuine flow line production. The prerequisites for this step included a product portfolio based on standards, precisely defined interfaces, efficient logistics, error-free master data and IT tools, and well-trained operational managers.

"Flow line manufacturing is characterized by pronounced flexibility in relation to capacities. With consistently high quality, daily output can be adjusted at short notice. A significant increase in production is also feasible without compromising efficiency and quality," comments Ludger Holtkamp, COO of 2G Energy AG. "Compared to the previous quarter, we raised g-box output by around 60% in the fourth quarter, and by around 200% compared to the previous year's fourth quarter."

For this reason, further production areas are currently being analyzed for potential conversion to flow line production.

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 hydrogen, natural gas, biogas, as well as other lean gases. Worldwide, more than 7,000 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 hydrogen, Natural Gas 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.

2021/2022 calendar dates
February 3 Pareto Securities' 24th annual Power & Renewable Energy Conference
February 24 Announcement of Preliminary Net Sales 2021
March 31 Preliminary results for FY 2021, 2022 guidance
April 6-7 Metzler Micro Cap Days
April 21 Consolidated financial statements for FY 2021
May 19 Q1 key figures and business trends
May 23-25 Spring Conference, Frankfurt
June 3 Ordinary AGM, Ahaus
September 5 Consolidated financial statements for H1 2022
September 5-6 Autumn Conference, Frankfurt
November 21 Q3 key figures and business trends
November 28-30 German Equity Conference, Frankfurt

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