DGAP-News: Capital Stage AG

DGAP-News: Capital Stage confirms forecast for FY 2016 after strong first half-year

DGAP-News: Capital Stage AG / Key word(s): Half Year Results Capital Stage confirms forecast for FY 2016 after strong first half-year

24.08.2016 / 15:46 The issuer is solely responsible for the content of this announcement.

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Hamburg, 24 August 2016 - SDAX-listed solar and wind park operator Capital Stage has continued the strong performance of the beginning of the year also in the second quarter. Thus, after a successful first half-year, the Hamburg-based company stays on track to reach its operational targets for the financial year 2016.

Thanks to the substantial expansion of the solar and wind park portfolio, Capital Stage AG increased its revenues by approximately 24 % to EUR 64.9 million compared to the prior year period. Given that average sunshine hours were below the long-term average and wind also remained below average, revenues in the first half of 2016 were about EUR 3 million lower than expected. If the meteorological conditions had been in line with the long-term average, growth would have been clearly higher. Nevertheless, operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by approximately 21 % to EUR 50.8 million. Operating earnings before interest and taxes (EBIT) climbed 14.7 % to EUR 31.9 million. At EUR 14.6 million, operating earnings before taxes (EBT) were approximately on a par with the previous year. The acquisition-related increase in earnings, which would have amounted to roughly 20%, was offset by the poorer meteorological conditions than in the previous years.

Operating cash flow showed a particularly positive trend and more than doubled (+120%) from EUR 22.8 million to EUR 50.2 million. However, one- time tax effects were reflected in operating cash flow in the first half of the year and the prior year period, which further intensified the positive acquisition-related trend of the key data. The specified key data are solely based on the company's profitability and do not reflect any IFRS- related measurement effects.

Expansion of the solar and wind park portfolio

In the first six months of the year, the company acquired four solar parks in Italy, two solar parks in the UK and one coastal wind park near Bremerhaven, Germany. As a result, the portfolio's total generation capacity rose from approximately 550 to over 600 MW. The acquisition of two of the Italian solar parks has not been completed at this stage and is therefore subject to the usual conditions precedent.

Also at the beginning of the second half-year, Capital Stage AG announced acquisitions. As a result of the acquisition of two further wind parks from Bremer Energiekontor AG in July and August, the total generation capacity in the wind parks segment increased to close to 140 MW. "Both current and future expectations regarding the economic conditions offer an ideal environment for continued qualitative growth", says Prof. Dr. Maubach. "In the coming weeks and months, we intend to further strengthen our portfolio through additional acquisitions."

Capital increase

To finance its growth strategy, in April, Capital Stage AG increased its share capital by close to 10% of the existing authorised capital, generating gross proceeds of almost EUR 50 million.

Takeover offer for CHORUS Clean Energy AG

At the end of May 2016, Capital Stage AG announced a takeover offer for CHORUS Clean Energy AG. The respective takeover offer document was published on 28 July 2016. Since, CHORUS shareholders have had the opportunity to exchange their CHORUS shares for Capital Stage shares at a ratio of three (3) CHORUS shares for five (5) Capital Stage shares. The term for acceptance ends on 16 September 2016. The merger would result in one of the leading independent operators of solar and wind parks in Europe.

"We expect the consolidation in our industry to intensify notably in the medium term. Today already, the merger makes us an important competitor, also by international standards, benefiting from excellent growth prospects and many strategic advantages", comments Prof. Dr. Maubach. "The takeover strengthens the market position, increases the efficiency and optimises the risk profile of our company. Moreover, it releases considerable value creation potential and improves the liquidity of the share. This also greatly benefits our shareholders."

At the Extraordinary General Meeting on 8 July 2016, the vast majority of the shareholders of Capital Stage AG voted for the shared future of the two companies. Also on the part of CHORUS Clean Energy AG, there is great support: As of 18 August more than 21% of all CHORUS shares had been submitted for exchange for Capital Stage shares - including the CHORUS shares held by the CHORUS Management Board members and the Supervisory Board Chairman, company founder and largest CHORUS shareholder, Peter Heidecker. "The current acceptance ratio makes us confident that the merger will be successful", emphasizes Prof. Dr. Maubach.

Positive outlook

In spite of the effects of the meteorological conditions, which were below the long-term average, the Management Board has again confirmed the operating earnings forecast for the financial year 2016, according to which revenues will increase to over EUR 130 million (2015: EUR 112.8 million), operating EBITDA will exceed EUR 100 million (2015: EUR 86.8 million), operating EBIT will amount to over EUR 60 million (2015: EUR 55.4 million) and operating cash flow to over EUR 93 million (2015: EUR 74.5 million).

The forecast is based on the existing portfolio as of the end of March and also covers the latest acquisitions. This is due to the fact that the acquired projects will not be connected to the grid before late 2016 or early 2017 and will therefore make no revenue or earnings contributions in the current financial year. The company expects, however, that the key performance indicators for 2017 will improve accordingly.

The 2016 half-year interim report of Capital Stage AG will be published on 31 August 2016.

About Capital Stage AG:

Since 2009, Capital Stage has acquired solar power plants and wind parks in Germany, France, Italy and the UK with a total generation capacity of more than 610 MW. As such, Capital Stage is Germany's largest independent operator of solar parks. Through the solar and wind parks the company generates attractive returns and continuous revenues for Capital Stage, while offering moderate investment risks.

Capital Stage AG is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange and in the regulated market of the Hanseatic Stock Exchange Hamburg (ISIN: DE0006095003 / WKN: 609500). The shares of Capital Stage AG have been listed in the Deutsche Börse Frankfurt a. M. selective index SDAX since March 2014.

For more information, visit www.capitalstage.com

Contact:

Capital Stage AG Till Gießmann Head of Investor & Public Relations Fon: + 49 (0)40 37 85 62-242 Fax: + 49 (0)40 37 85 62-129 E-mail: till.giessmann@capitalstage.com

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24.08.2016 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.

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Language: English Company: Capital Stage AG Große Elbstraße 59 22767 Hamburg Germany Phone: +49 4037 85 62 -0 Fax: +49 4037 85 62 -129 E-mail: info@capitalstage.com Internet: www.capitalstage.com ISIN: DE0006095003 WKN: 609500 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service ---------------------------------------------------------------------------

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