DGAP-News: KTG Energie AG / Key word(s): Miscellaneous
KTG Energie AG: EEG amendment secures sales and earnings base

02.07.2014 / 13:52

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EEG amendment secures sales and earnings base

  - Over EUR75 million sales p.a. guaranteed in the long-term through
    preservation of the status quo

  - Biological waste offers new opportunities 

  - Capacity expansion to 50 MW fully on track

Hamburg, July 2, 2014 - KTG Energie AG (ISIN: DE000A0HNG53) welcomes the
EEG amendment regarding the renewed improvement preserving the status quo
to safeguard the amount of the feed-in tariff, the term of 20 years and the
priority feed-in of all biogas installations put into operation up to July
31, 2014. The expansion of biogas installations is running according to
schedule, so that the Executive Board is confident that it will be able to
extend capacity from 43 megawatts at present to 50 megawatts by July 31,
2014 - and thus to achieve the goal of 50 MW more than one year earlier
than originally planned. The feed-in tariff for 20 years from the time of
commissioning, which is favorable in comparison with the planned EEG
amendment, thus applies for the total capacity of 50 megawatt. The earnings
base will thus increase to more than EUR75 million per year and the EBITDA
base to considerably more than EUR20 million.

Growth opportunities through acquisition, optimization and biowaste
utilization

There has been a crucial improvement compared with the draft - for all
installations the actual maximum performance of an installation now applies
as the expansion limit. The guarantee for supporting power production will
now be defined to 95% of the power installed on July 31, 2014. With an
average capacity utilization of over 92%, which is what KTG Energie
currently achieves, support for the total amount of power produced will
still be guaranteed and additional development potential also exists. In
particular, the acquisition and optimization of installations that have
only achieved low capacity utilization to date will thus be ensured, as the
amendment will guarantee additional power generation potential up to 95% of
the technically installed power according to EEG 2014. "Acquisition and
optimization of installations that are producing well below their
theoretical capacity will thus remain an additional growth opportunity for
us. However, the most important point is that our sales and earnings from
existing installations are ensured in the future," says Dr. Thomas Berger,
CEO of KTG Energie AG. In addition, the utilization of biological waste,
which has now been included in the EEG, offers opportunities. "We envisage
further growth and earnings opportunities in this area, as biological waste
as a substrate is considerably more cost-effective than the catch crops
that we use. Our parent company KTG Agrar can supply us with biological
waste from the food production industry", Berger points out. KTG Energie is
basing its future growth strategy on four pillars - favorable acquisition
opportunities, additional optimization potential of existing installations,
as well as new opportunities in the market for mobile heat transfer and the
construction of biogas installations that use agricultural waste material
and biowaste.

Forecast raised following the strong first half-year

In the first half-year of 2013/2014 (November through April) KTG Energie AG
increased sales by 38% to EUR29.82 million, in comparison with the same
period in the previous year, according to preliminary calculations. At the
same time, EBITDA increased by 34% to EUR8.5 million. EBIT also rose by 34%
to EUR5.5 million. Adjusted for the included trading volume (EUR1.2
million), the EBITDA margin improved by 1.2 percentage points to 29.7% and
the EBIT margin increased by almost 1 percentage point to 19.2%. Based on
the positive trend in the first half-year, the Executive Board raised its
forecast for the current fiscal year and is now anticipating sales of at
least EUR65 million (previously: up to EUR65 million), EBITDA of at least
EUR18 million (previously EUR16 to EUR17million) as well as an EBIT of at
least EUR11.5 million (previously EUR9 to EUR9.5 million).

About KTG Energie AG

KTG Energie AG, based in Hamburg, is specialized in the production of
renewable energies from renewable raw materials. To this end, the company
has been operating biogas plants in Germany since 2006 and covers the
entire value added chain from the planning and construction to the
operation of the systems. Sales quantities are guaranteed through the
Renewable Energy Act (EEG) for a period of 20 years at fixed conditions.
Today, over a quarter of a million people are already supplied with clean,
environmentally-friendly energy. As a subsidiary of the agricultural
company KTG Agrar AG, the supply of renewable raw materials - particularly
catch crops, grass and straw - is guaranteed in the long term. KTG Energie
currently employs around 65 staff and has more than doubled sales volume in
the short fiscal year 2013 (January through October 2012: around EUR23
million), in comparison with the first ten months of the previous year, to
EUR50.9 million. The operating result (EBITDA) increased by 97% to EUR13.2
million (January through October 2012: EUR6.7 million) and EBIT increased
to EUR8 million. The individual company KTG Energie AG achieved a profit of
over EUR3 million, of which it distributed almost 80% as dividends to the
shareholders (EUR0.40 per share). The company has been listed on the
Frankfurt Stock Exchange since 2012.

Financial Calendar:
<pre>

Publication of Half-Year Report                               July 22, 2014

4th Zurich Capital Market Conference (ZKK)               September 10, 2014

Bond: Annual interest payment                            September 28, 2014

18th Munich Capital Market Conference (MKK)             December 9-10, 2014

</pre>

Contact

Investor Relations / Press
Tobias M. Weitzel
BSK Becker+Schreiner Kommunikation GmbH 
Phone: +49 2154-8122 16
E mail: weitzel@kommunikation-bsk.de
 


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Language:    English                                                 
Company:     KTG Energie AG                                          
             Ferdinandstr. 12                                        
             20095 Hamburg                                           
             Germany                                                 
Phone:       +49 40 76755372                                         
Fax:         +49 40 76755374                                         
E-mail:      info@ktg-energie.de                                     
Internet:    www.ktg-energie.de                                      
ISIN:        DE000A0HNG53, DE000A1ML257,                             
WKN:         A0HNG5, A1ML25                                          
Listed:      Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;  
             Frankfurt in Open Market (Entry Standard)               
 
 
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