Corporate | 30 April 2013 08:00

EnviTec Biogas remains profitable in challenging year 2012

EnviTec Biogas AG / Key word(s): Final Results/Dividend

30.04.2013 / 08:00

Corporate News

EnviTec Biogas remains profitable in challenging year 2012

– Sales of EUR 190.5 million, EBIT of EUR 1.3 million, consolidated net income
of EUR 1.2 million

– Market environment will remain challenging in 2013

– Forecast for 2013: EUR 170 to 180 million in sales and a positive operating result

– Proposed special dividend of EUR 1.00 per share

Lohne, 30 April 2013 – As had been expected, the German biogas sector was unable to repeat the record year 2011 in 2012. This is due to the new Renewable Energy Sources Act (EEG), which came into force in Germany at the beginning of the year. As the biogas sector took some time to adapt to the new and complex conditions, demand in the German biogas market dropped by roughly 80% in 2012 compared to the previous year. Although EnviTec Biogas (ISIN: DE000A0MVLS8) pushed ahead its internationalisation at an early stage and aggressively expanded the operation of own biogas plants, the company was able to offset the negative trend in domestic demand only partly. Accordingly, Group sales revenues amounted to EUR 190.5 million in 2012, compared to EUR 243.9 million in the previous year. International sales increased by 40.6% to EUR 88.7 million, while sales revenues in the Own Plant Operation segment rose by as much as 42.7% to EUR 40.8 million. A production capacity of 52 megawatts (MW) – of which ten MW were taken into operation in 2012 – makes EnviTec one of the leading biogas producers in Germany.

The decline in Group sales revenues had an adverse impact on the bottom line. Earnings before interest and taxes dropped from EUR 10.8 million to EUR 1.3 million and consolidated net income for the year decreased from EUR 7.5 million to EUR 1.2 million. On the balance sheet date of 31 December 2012, EnviTec had a very solid financial position, as reflected in liquid funds of EUR 20.7 million and an equity ratio of 52.3%. EnviTec also has strong cash flows. Gross cash flow in 2012 amounted to EUR 16.5 million (previous year: EUR 19.1 million), while net cash flow even reached EUR 32.5 million (previous year: EUR -3.3 million).

The framework conditions in Germany are constantly being questioned by policy-makers and are in clear contradiction with the commitment to the announced move towards green energy. As a result, the biogas sector – just like the other renewable energy sources – is lacking the legal and economic planning certainty that is needed to make investments. Says Jörg Fischer, CFO of EnviTec Biogas AG: ‘Companies which today invest in tomorrow’s energy production must be able to rely on the basis of their investment decisions still being in place tomorrow. Unfortunately, this is not the case at present.’

To cope with the market environment and to remain profitable, EnviTec was forced to implement structural and personnel adjustments in the Plant Construction segment in January 2013. Says Jörg Fischer: ‘We remain convinced of the medium to long-term growth opportunities in Europe and new markets such as the UK, France and the United States. We must nevertheless become leaner and more flexible. Together with our strong technological and financial foundation this is the precondition for us to defend EnviTec’s leading position in the market.’

The Lohne-based company projects consolidated sales revenues of between EUR 170 million and EUR 180 million for the year 2013. The operating result should be positive in spite of the restructuring charges and the sharp decline in plant construction revenues. Having increased the production capacity to 52 MW in 2012, the company projects sales revenues of approx. EUR 55 million and a clearly positive result for the Own Plant Operation segment in 2013. The year will see EnviTec focus on the optimisation of the existing plants. In addition, the company plans to install at least 5 MW of new capacity – which is less than originally planned. This should send the production capacity rising to a good 57 MW by the end of 2013 and lay the foundation for further sales and earnings growth in this segment in 2014.

In view of reduced capital expenditures, the good liquidity position and the very solid equity ratio of 52% (as of 31 December 2012), the Supervisory Board and the Executive Board will propose a special dividend of EUR 1 per share to the shareholders at the ordinary Annual General Meeting on 27 June 2013.

About EnviTec Biogas AG
EnviTec Biogas AG covers the entire value chain for the production of biogas: including the planning and turnkey construction of biogas plants as well as their commissioning. The company takes charge of biological and technical services on demand and also offers full plant and operational management. In addition, EnviTec also operates its own biogas plants. In 2011 EnviTec Biogas established EnviTec Energy GmbH & Co. KG and its 100% subsidiary EnviTec Stromkontor GmbH & Co. KG, expanding its business operations into the direct marketing of upgraded biomethane as well as the marketing of green electricity and balancing energy. Today, EnviTec Biogas AG is represented in 20 countries throughout Europe, as well as in India and the USA. In 2012 EnviTec generated revenues of EUR 190.5 million and an EBIT of EUR 1.3 million. The EnviTec Group currently has 398 employees. EnviTec has been listed on the Prime Standard segment of the Frankfurt Stock Exchange since July 2007.

Contact:
Katrin Selzer
EnviTec Biogas AG
Tel: +49 25 74 88 88 – 810
E-Mail: k.selzer@envitec-biogas.de

End of Corporate News

30.04.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language:	English
Company:	EnviTec Biogas AG
	Industriering 10a
	49393 Lohne
	Germany
Phone:	+49 (0) 44 42 – 80 65 0
Fax:	+49 (0) 44 42 – 80 65 103
E-mail:	info@envitec-biogas.de
Internet:	www.envitec-biogas.de
ISIN:	DE000A0MVLS8
WKN:	A0MVLS
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart

End of News DGAP News-Service

209056  30.04.2013