EQS-News: 2G Energy AG aligns Group structure for further international growth

Corporate News          Heek, July 18, 2024

2G Energy aligns Group structure for further international growth

• Parent company Group structure now being transferred to an operational holding structure
• The former 2G Energietechnik GmbH will concentrate on sales, project management and service in Germany
• Production and procurement will be transferred to 2G Heek GmbH, which is yet to be founded
• 2G Energy AG reporting growth in new order intake to EUR 41.9 million in Q2 (previous year: EUR 36.7 million, +14%)

Heek, July 18, 2024 – 2G Energy AG (ISIN DE000A0HL8N9), one of the internationally leading manufacturers of gas driven combined heat and power (CHP) systems, is aligning its Group structure to achieve additional international growth.

The parent company Group structure is to be transferred to an operational holding structure

As communicated on several occasions, the Management Board continues to expect sales growth of around 10% p.a., plus the respective annual Inflation rate in the coming years. This planned growth will come from the traditional regions, i.e. Germany and the other G7 countries, as well as to an increasing extent from the other European countries and the Indo-Pacific region.

"The continued successful growth of our business and the associated need to adapt processes and structures have prompted us to reorganize the functions of 2G Energietechnik GmbH, the parent company and mother ship of the Group," as CEO Christian Grotholt stated. "We are synchronizing our national setup with the existing 2G national companies for sales, project management and service. These areas of activity will remain within 2G Energietechnik, while production and procurement activities, on the other hand, will be located in a newly established company."

Moreover, as the parent company, 2G Energy AG will also provide operational services for the subsidiaries in the areas of accounting, legal, human resources, IT, R&D and in additional sub-areas.

The extensive preparatory work for the creation of the new structure has already begun. In operational terms, the future structure is expected to be already implemented to a large extent from the beginning of next year. Legal implementation will begin incrementally in the current year and should be completed in the first half of 2025.

The former 2G Energietechnik GmbH will concentrate on sales, project management and service in Germany

As part of this restructuring, the previous main company, 2G Energietechnik GmbH, will continue to be responsible for sales, project management and service in Germany. With regards to existing and new customers, nothing will change in terms of cooperation. This focus, however, will naturally be reflected in intensified market and customer support and even shorter response times. The company name, 2G Energietechnik GmbH, will also remain unchanged.

Outside of Germany, the 2G Energy AG Group has sales and service companies in the USA, Canada, the UK, France, Italy, Spain, the Netherlands and Poland. Countries in which there are currently no national sales and service companies are now being served by 2G Energy International GmbH within the context of a commission model. As part of the restructuring, 2G Energy International GmbH will be developed into a complete sales and service company and will consequently take over the international existing and new customer business from the former 2G Energietechnik GmbH.  

Production and procurement will be transferred to 2G Heek GmbH, which is still to be founded

The previous procurement and production activities of 2G Energietechnik GmbH will be transferred to a newly established company. This new company is expected to operate under the name 2G Heek GmbH and will continue to be headquartered in Heek/Germany. 2G Heek GmbH is responsible for the production of CHP units and heat pumps, given that the production of the respective type of heat pump can be considered industrialized. Heat pumps that are not or not yet fully transferred to an industrialized production process will continue to be manufactured by way of our competence center NRGTEQ B. V. in Rosmalen/Netherlands.

Consequently, in future, 2G Heek GmbH will handle its sales activities completely and exclusively via its sister companies.    

"With the new Group structure, we are creating much better organized management areas," says CEO Christian Grotholt. "In addition, the sub-units will operate with processes and IT tools that are as uniform as possible, allowing us to shoulder future growth in a more stable and efficient manner."

2G Energy AG reports growth in new order intake to EUR 41.9 million in Q2 (previous year: EUR 36.7 million, +14%)

At +14%, incoming orders in the second quarter were once again significantly higher than in the prior year quarter. In the USA in particular, the impetus provided by the Inflation Reduction Act continues to have an impact and, in conjunction with a strengthened sales team, has once again resulted in a high order intake of EUR 11.9 million (Q1 2024: EUR 10.1 million; Q2 2023: EUR 2.6 million).

Incoming orders from the German market grew to EUR 19.1 million (previous year: EUR 17.3 million, +10%) thanks to extensive sales activities and despite a wait-and-see attitude due to the unresolved power plant strategy and the upcoming amendment to the CHP Act. Similar uncertainties are prevailing in the remaining European countries. However, the latest election results in France and the United Kingdom suggest that governments in these two important markets will assume responsibility and continue to pursue the existing climate policy geared to reducing CO2 emissions.

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

* rounding differences can arise.

2G company portrait

The 2G Energy AG Group is an internationally leading manufacturer and system provider of decentralized energy supply systems. The company develops, produces and installs comprehensive solutions in the growing market for highly efficient CHPs and large heat pumps. Digital grid integration and plant control for both types of energy generators, as well as service and maintenance, are further decisive performance criteria.

The product portfolio includes CHP plants in the output range from 20 kW to 4,500 kW for operation with hydrogen, natural gas, biogas and other lean gases, as well as large heat pumps in the range from 100 kW to 2,6000 kW. CHP plants operate with efficiencies of 90 percent and more, while large heat pumps achieve efficiencies of 300 to 500 percent, depending on the general conditions. With its products and services, 2G is at the interface to a decentralized, secure and largely decarbonized energy supply. More than 8,000 2G systems have already been installed worldwide in various applications, supplying electrical and thermal energy to a wide range of customers from the housing industry, agriculture, commercial and industrial companies, energy suppliers, municipal utilities and local government authorities.

2G is positioned worldwide as a system provider for decentralized energy solutions with its combination of CHP plants and large heat pumps. The company benefits from far-reaching synergies of both plant categories, ranging from project development, procurement, and production to the largely identical customer base and regulatory framework as well as sales channels and digital control and service.

2G is consistently expanding its technological leadership through continuous research and development work, both in power plant and pump technologies as well as in specific software development for service and maintenance activities. The digital grid integration consistently implemented by 2G is an indispensable, system-relevant element in the future electricity market design and represents a high market entry hurdle for competitors. The sector coupling required for the success of the energy transition is reflected in 2G's portfolio.

2G employs more than 900 employees 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 312.6 million in the 2022 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the “Scale” segment of the Frankfurt Stock Exchange.

Calendar 2024

September 5  Consolidated financial statements for H1 2024

November 25  Q3 key figures and business trends

November 25-27  German Equity Forum, 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