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Annual General Meeting of Energie­kontor AG

Press release from 05-23-2017

Based on another increase in earnings, Energiekontor remains well positioned in a changed market environment

Bremen, 23 May 2017. Today, Energiekontor AG held its Annual General Meeting in Ritterhude near Bremen. It was attended by about 120 invited shareholders, shareholder representatives and guests. Peter Szabo, the CEO of Energiekontor AG, held a presentation on the Company’s current business performance, also explaining the strategic positioning of Energiekontor AG in a changed market environment.

As already reported on 11 April 2017, Energiekontor AG once again achieved a considerable increase in earnings in the 2016 financial year. While consolidated revenue increased by 5 percent to EUR 201.8 million (previous year: EUR 191.3 million), consolidated earnings before taxes (EBT) climbed almost 20 percent to EUR 35.5 million (previous year: EUR 29.7 million). Consolidated net income was EUR 25.3 million (previous year: EUR 20.9 million), which represents a year-on-year increase of 21 percent. At the level of the AG, Energiekontor generated net income of EUR 28.7 million, thus 55 percent above the previous year’s level (EUR 18.5 million). Given distributable profits of EUR 14,693,581.00, the Management and the Supervisory Board proposed to again pay a dividend of EUR 0.80 for every share with dividend rights; the proposal was accepted by a large majority.

The renewed increase in earnings was generated primarily in the Project Development and Sales division, where five wind farms and one solar park with total rated power of more than 64 megawatts were sold to investors. This more than compensated for the earnings decline in the Power Generation division, which was burdened by a relatively poor wind year and the depreciation of the British pound versus the euro. The proceeds from the sale of the British Gayton le Marsh wind farm were used to prematurely repay existing loans for Group-owned wind farms. While contributing to the improvement of the equity ratio, the Management Board expects this step to significantly ease the interest burden in this segment in the upcoming years.

About half of the projects that had been approved by the end of 2016, the total output of which will be around 100 megawatts, are already under construction. These and the other approved projects are all scheduled for completion before the end of the current financial year. Purchase agreements have already been concluded with investors for two of the aforementioned projects.

The CEO also addressed the change in market conditions, explaining that the first auctions for determining the remuneration for power from onshore wind farms are being carried out in Germany in 2017. The results of the first auction round in May were published shortly before the General Meeting. The auction volume of 800 megawatts was 2.5 times oversubscribed. 70 projects with bidding prices between 5.25 and 5.78 euro cent emerged successfully from the auctioning round. Most of these projects refer to the northern half of Germany and 65 thereof were projects filed by citizen energy cooperatives.

In the second core market, UK, in contrast, subsidies for onshore wind energy have meanwhile been cancelled altogether. Here, the Company is therefore concentrating on the development of large wind farms in Scotland, at locations with strong winds. The Management Board expects that the first projects on the basis of real market prices will be realised in this market in 2018.

With respect to the Company’s activities in new foreign markets, Mr Szabo mentioned the establishment of an office and the conclusion of the first option agreements for wind farm development projects in the Netherlands. In addition, Energiekontor identified suitable wind and solar locations in the US – in Texas and North Dakota – and is pushing ahead with the acquisition of land. In France, the Group is starting to identify suitable areas and to address landowners and community representatives. Energiekontor is preparing the establishment of subsidiaries and offices in both these countries.

The share price, which has quadrupled in the last three years, also reflects the Company’s successful performance. According to Peter Szabo, Energiekontor AG has attracted a number of international investors in addition to its loyal existing shareholder basis over the last few months.

The CEO further states that the business model has proved to promote self-sustaining organic growth. The Company still believes itself well positioned with a well-filled pipeline of projects in various development stages and a total capacity of approximately 1,500 megawatts. The medium-term target is unchanged at sustainable EBT of approximately EUR 30 million p.a. in project development and sustainable EBT of approximately EUR 25-30 million p.a. from the sale of power and operational management of Group-owned and external farms. All in all, Energiekontor is targeting sustainable EBT at Group level of EUR 55-60 million p.a. in the medium term.

The Management Board believes that future growth will originate from the expansion of the solar business in Germany and abroad, the realisation of an extensive project pipeline in Scotland, enhanced internationalisation and new foreign markets for wind and solar power, and the optimisation of power generation by means of innovations and efficiency enhancements.

About Energiekontor AG:

For the last 25 years, Energiekontor has stood for a sound approach to business and a wealth of experience in wind power. Formed in Bremerhaven in 1990, the Company was one of the pioneers in the industry and is now one of the leading German project developers. Its core business covers the planning, construction and operational management of wind farms in Germany and abroad, and was expanded to include solar power in 2010. Energiekontor also currently owns and operates 31 wind farms with a total rated power of around 238 megawatts.

In addition to its headquarters in Bremen, Energiekontor also maintains offices in Bremerhaven, Hagen im Bremischen, Aachen, Bernau (near Berlin) and Dortmund. The Company also has branch offices in England (Leeds), Scotland (Glasgow), Portugal (Lisbon) and the Netherlands (Nijmegen). Our track record speaks for itself: 105 wind farms completed, with 577 turbines and total rated power of around 865 megawatts. This corresponds to an investment volume of roughly EUR 1.4 billion.

Energiekontor went public on 25 May 2000. The shares of Energiekontor AG (WKN 531350/ISIN DE0005313506) are listed in the General Standard segment of the Frankfurt Stock Exchange and can be traded on all German stock exchanges.

Dr. Stefan
Eckhoff
Head of Investor Relations

Tel.: +49 421 3304-0
Fax: +49 421 3304-444
stefan.eckhoff@energiekontor.com