DGAP-News: KTG Energie AG stays on planned growth path

DGAP-News: KTG Energie AG / Key word(s): Final Results/Results Forecast KTG Energie AG stays on planned growth path 27.03.2014 / 08:31 --------------------------------------------------------------------- KTG Energie AG stays on planned growth path - Company continues growth in Q1 - EBITDA set to rise by at least 25 percent to EUR 17 million in 2014 - Proposed dividend: 40 cents per share - Continuously rising dividend plan - Audited 2013 annual report published Hamburg, March 27, 2014 - Based on the growth it achieved in the first quarter of the year (November 2013 - January 2014), KTG Energie AG (ISIN: DE000A0HNG53) is confirming its forecast for the current 2013/2014 financial year: "We continued to grow during the first quarter. We are currently expanding our base of installations, as scheduled, and we are sure that we will achieve our 2014 forecast," comments Dr. Thomas Berger, CEO of KTG Energie AG. Compared with the abbreviated 2013 financial year, high-margin revenue from existing installation operations are to grow to up to EUR 65 million in the 2013/2014 financial year (January-October 2013: EUR 42 million). The Management Board expects the EBITDA margin to come in at around 27 percent, resulting in EBITDA from existing installations to lie in a prospective range of between EUR 16 million and EUR 17 million. Given a targeted minimum 15 percent EBIT margin, the existing installation park will achieve EBIT prospectively in a range between EUR 9 million and EUR 9.5 million. Compared with the abbreviated 2013 financial year, EBITDA would consequently grow by up to 25 percent, and EBIT by up to 18 percent. In addition, production capacities are to grow to around 50 MW through the expansion of existing installations by July 2014, compared with 41 MW as of October 31, 2013. 2013: Profitability and revenue double - first dividend payment The KTG Energie Group, which has today published its audited annual report for its 2013 abbreviated financial year (www.ktg-energie.de), more than doubled its revenue in the 2013 abbreviated financial year compared with the first ten months of the previous year to EUR 50.9 million (January to October 2012: around EUR 23 million). Revenue from high-margin installation operations climbed from EUR 31 million to EUR 42.3 million, and trading revenue and other income contributed EUR 8.7 million to revenue growth. Operating earnings (EBITDA) improved by 97 percent to EUR 13.2 million (January to October 2012: EUR 6.7 million), and EBIT rose to EUR 8.0 million. The parent company KTG Energie AG generated a profit of more than EUR 3.0 million, almost 80 percent of which is to be paid out as a dividend to shareholders. The Management and Supervisory boards of KTG Energie AG are proposing to the Shareholders' General Meeting that it approve the payment of a dividend of EUR 0.40 per share. Given a price of EUR 11.20 (Xetra, March 26, 10:12 hours), this is equivalent to an approximately 3.6 percent dividend yield. The Management Board is endeavoring to realize continuous dividend growth in the coming years. Cash flow significantly higher than debt servicing KTG Energie reports EUR 19.9 million of equity as of the October 31, 2013 balance sheet date (December 31, 2012: EUR 18.6 million), and liquid assets of EUR 8.4 million (December 31, 2012: EUR 20.8 million). The debt service coverage ratio (DSCR) stood at around 1.40. Accordingly, the cash flow available for debt servicing covered the interest and redemption amounts required to service debt by 1.4 times. The refinancing of installations under construction, which has had interim financing through bond funding, and which is gradually being replaced by low-interest KfW loans, is releasing funds for redemption. "Feed-in tariffs guaranteed for twenty years and the acceptance guarantee secure our future sales revenues and income, allowing our business model to stand on an extremely solid foundation, and ensuring the repayment of the medium-term bond by refinancing with long-term, low-interest KfW loans" notes CEO Dr. Thomas Berger. High revenue and income as basis of future growth The organic expansion of existing installations to a 50 MW production capacity level, which is planned as of August 1, on its own allows a high-margin and long-term secured annual revenue of up to EUR 75 million for the 2014/2015 financial year. As far as existing installations are concerned, the 20-year feed-in tariff guarantee for the residual term pledged in each case, and the feed-in priority - as planned in the amendment to the German Renewable Energies Act (EEG) - ensure maximum security. CEO Dr. Thomas Berger: "Our growing revenue and income base enables us to distribute continuously growing and attractive dividends to our shareholders." Minority shareholder KTG Agrar SE also benefits from this. In addition, KTG Energie identifies further growth potential in optimizing existing installations, in the acquisition from the market and optimization of additional biogas installations, and in mobile heating transportation. 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), in comparison with the previous year, to EUR50.9 million and increased the operating result (EBITDA) by 97% to EUR13.2 million. The company has been listed on the Frankfurt Stock Exchange since 2012. Further information: www.ktg-energie.de Contact: Investor Relations / Press Tobias M. Weitzel BSK Becker+Schreiner Kommunikation GmbH Phone: +49 2154-8122 16 E-mail: weitzel@kommunikation-bsk.de End of Corporate News --------------------------------------------------------------------- 27.03.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group 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: 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) End of News DGAP News-Service --------------------------------------------------------------------- 259929 27.03.2014