2G Energy AG: H1 total output up by 20.7% to EUR 166.3 million (previous year: EUR 137.8 million)

• 2G is leveraging further rationalization potential within the context of the Lead-to-Lean project
• EBIT exceeds previous year's figure by 61.8% (EUR 4.1 million; previous year: EUR 2.6 million)
• Order intake in July and August above prior-year level

Heek, September 07, 2023 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of combined heat and power (CHP) plants and producer of heat pumps, is leveraging further rationalization potential as part of its Lead-to-Lean project and is once again significantly boosting factory output.

Total output grows by 20.7% to EUR 166.3 million (previous year: EUR 137.8 million)

In the first half of the year, 2G not only succeeded in lifting sales by 18.9% to EUR 135.5 million (previous year: EUR 114.0 million). At the same time, factory output was once again expanded - by 20.7% to a current EUR 166.3 million (previous year:  EUR 137.8 million). In achieving this result, 2G continued to consistently apply "lean production" principles. One of the most successful measures in the first half of the year was the conversion of the entire assembly line from a two-shift system to a single-shift system.

"By synchronizing assembly sequences, quality processes and logistics operations, we have significantly consolidated the productive areas and combined both shifts into one," as COO Ludger Holtkamp stated. "This results in a win-win situation: Employees no longer have to work in the unpopular rotating shift system, and 2G has a workforce that is naturally more resilient and observant at 10:00 in the morning than they were at 10:00 in the evening."

EBIT now exceeding previous year's figure by 61.8% (EUR 4.1 million, previous year EUR 2.6 million)

The productivity gains are reflected on the one hand in the renewed rise in work in progress (EUR 97.3 million, previous year: EUR 66.7 million), most of which consists of CHP units ready for delivery or grid connection. On the other hand, the higher productivity is reflected in particular in the personnel cost ratio, which dipped from 20.6% to 19.4%, although the average compensation per employee was increased significantly compared with the prior year due to the general situation on the labor market. The EBIT margin developed extremely positively overall, rising from 2.2% in the previous year to 3.0%. EBIT itself increased by 61.8% to now 4.1 million euros (previous year: EUR 2.6 million), thereby reaching an all-time high for a first half year.

The half-year report is now available for download in German and English at https://www.2-g.com/en/financial-publications.

Order intake in July and August above prior-year level

As already announced in the Corporate News of July 27, order intake in July and August exceeded the respective prior-year figures. The vibrant upturn is emanating from all the main core regions. The Management Board is confident that the cumulative order intake in the third quarter of 2023 will markedly exceed the prior-year figure (EUR 37.6 million).

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 1,000 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.

2023 calendar dates
November 27  Q3 key figures and business trends
November 27-29  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