Q2 / Next Generation Power. Next Generation Power Network Management. Power Network Management. Consolidated half-yearly financial report

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1 Q2 / 2015 Consolidated half-yearly financial report Heliocentris Energy Solutions AG Next Generation Power Network Management Next Generation Power Network M Next Generation Power Next Generation Power Network Management Power Network Management

2 Contents Heliocentris 1 Contents Introduction by the Management Board The Heliocentris share Interim Group Management Report as at 30 June 2015 Organisational structure of the Group Business performance and significant events General economic environment Research and development Results of operations Financial position and net assets Risk report Outlook Supplementary report Consolidated half-yearly financial report as at 30 June 2015 Condensed consolidated statement of profit & loss Condensed consolidated statement of financial position Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flows Notes to the condensed consolidated financial statements 32 Financial calendar / contact / editorial information

3 2 Heliocentris Introduction by the Management Board Introduction by the Management Board Dear Shareholders, In the first half of the year, Heliocentris Energy Solutions AG has taken a major step towards achieving its growth targets for 2015, which has seen us expand our customer base in the industrial business significantly in the first six months of the year. This has meant that despite the only slight rise in sales in the first half-year due to delays in acquiring new customers we have laid the foundation stone with a view to again increasing our sales significantly year-on-year for the 2015 financial year as a whole. A highlight in the reporting period and the most important milestone in the company s history to date was the conclusion of a global frame agreement with a leading northern European operator of mobile base stations. Heliocentris thus became the preferred supplier of solar hybrid systems based on Heliocentris Energy Management System for the mobile network operator s more than 30 subsidiaries worldwide. Our new major customer is one of the top 15 mobile network operators in the world with around 186 million mobile network customers. This frame agreement has seen Heliocentris secure a new customer with the biggest sales potential so far since the founding of the company. The agreement was concluded with a term of three years, with the simultaneous option to extend it by a further two years. In the past few years, Myanmar has become one of our main generators of revenue and continues to represent a significant growth market. Over 900 mobile base stations in Myanmar are currently supplied with power and remotely monitored by energy solutions from Heliocentris. The considerable efficiency and reliability of our energy solutions in Myanmar has resulted in a noticeable rise in demand and has seen us acquire further customers in Myanmar and the United Arab Emirates (UAE) over the reporting period. In the second quarter, we received an initial order worth around EUR 1 million for the modernisation and hybridisation of 30 Etisalat mobile base stations in the UAE. This order was the first call-up under a frame agreement for the supply and installation of up to 500 systems. In the reporting period, we likewise received a further order from Emirates Integrated Telecommunications Company du to supply and install 30 solar hybrid systems. After the end of the reporting period, we were also awarded a major order from a Japanese electronics corporation to supply and install additional turnkey hybrid power solutions for the development of 152 new mobile base stations in Myanmar. The frame order is for a total volume of approximately EUR 6 million and current planning indicates that this should have an impact on sales in the current financial year. On the supply side, we also made considerable headway in the first half of 2015 towards underpinning our competitiveness in the long term. We invested in the development of our remote management software and developed a brand-new software package, which has numerous management functions allowing for flexible integration within the networks of our telecoms customers worldwide. The market launch of the first modules will take place in the current financial year. Greater service and licence sales are expected to be generated on this basis in future. We are also making considerable progress with our Zero Emissions Roadmap and currently anticipate being able to install the first fuel cell systems with integrated hydrogen generators for customers as early as in 2015.

4 Introduction by the Management Board Heliocentris 3 Ayad Abul-Ella, Chief Executive Officer (CEO) Dr. Henrik Colell, Chief Technology Officer (CTO) In the reporting period, we increased our sales and order backlog by 31% or EUR 3,047 thousand year-on-year to EUR 12,856 thousand. This increase primarily results from sales and orders for the supply and installation of hybrid power systems for mobile base stations in Myanmar. A further increase was driven by supply, installation and maintenance contracts from the United Arab Emirates. In the period from January to June 2015, the Group s sales rose by 26% to EUR 5,627 thousand (previous year: EUR 4,476 thousand). EUR 3,664 thousand or 65% of sales in the first half of the year related to the Industry segment and, in particular, to the supply and installation of turnkey energy efficiency solutions for mobile base stations in Myanmar. The share of sales of the Academia segment amounted to 35% or EUR 1,964 thousand. Order intake, a key performance indicator for sales performance, increased by 36% in the first six months of the current financial year to EUR 9,855 thousand (previous year: EUR 7,258 thousand). Of this figure, EUR 8,221 thousand related to the Industry segment and EUR 1,634 thousand to the Academia segment. In the first half of 2015, the Group s gross profit in relation to growth amounted to EUR -424 thousand (previous year: EUR -207 thousand). It should be noted in particular that cost of sales for the first half of the year contains a significant proportion of fixed costs relating to capacity development and expansion. Owing to delays in acquiring new customers, the positive variable profit contributions were still not sufficient to cover fixed cost of sales in the first half of the year. In light of the successful new customer acquisitions, particularly in the last few months, significantly higher sales are expected in the second half of 2015 than in the first six months of the year. Along with this, the company is planning to keep fixed costs at the same level as in the first six months of the year, which if it continues to anticipate positive profit contributions should result in a significant improvement in gross profit in the second half of At EUR -10,637 thousand, the total comprehensive income (loss) for the period was 84% higher than in the first half of 2014 (EUR -5,792 thousand). EUR -10,583 thousand of the total comprehensive income (loss) is attributable to equity holders of the parent. Several factors contributed to the total comprehensive loss. Due to delays in acquiring new customers in the first half of 2015, no additional profit contributions were generated in comparison to 2014, which meant that the rise in costs, which was essentially due to the acquisition of FutureE Fuel Cell Solutions GmbH (subsequently Heliocentris Fuel Cell Solutions GmbH) and the non-recurring costs relating to the segment transformation and restructuring of the company, were not offset.

5 4 Heliocentris Vorwort As at 30 June 2015, cash and cash equivalents climbed to EUR 12,699 thousand from EUR 2,258 thousand as at 31 December Equity rose by EUR 9,657 thousand or 83% as a result of the capital increases carried out in the reporting period, from EUR 11,692 thousand as at 31 December 2014 to EUR 21,349 thousand as at 30 June The equity ratio likewise moved up to 51% at the end of the reporting period (31 December 2014: 36%). The orders and new customers acquired in the first half of 2015 give us tailwind for a strong second half to the year. This applies, on the one hand, to the aforementioned large-volume frame agreement with the mobile telecommunications provider but also to the successes in Asia, which underscore the robustness of our solution and the efficiency of our service organisation in the field. In the meantime, Heliocentris has established an excellent reputation in this particular region as a leading supplier of hybrid power solutions. In the months ahead, we will continue to pull out all the stops to carry on the success story of Heliocentris Energy Solutions AG. In light of rising sales and the elimination of non-recurring effects, the Management Board expects to see a significantly improved result in the second half of 2015 compared with the first half of the year. Overall, as at 28 August 2015, sales and order intake combined total EUR 21.9 million and are thus EUR 7.3 million higher than in the prior-year period and already EUR 3.0 million higher than total sales in Sincerely The Management Board of Heliocentris Energy Solutions AG Ayad Abul-Ella, Chief Executive Officer Dr. Henrik Colell, Chief Technology Officer

6 5 Heliocentris The Heliocentris share The Heliocentris Energy Solutions AG share Share price performance in first half of 2015 The shares of Heliocentris Energy Solutions AG began the 2015 financial year on 2 January 2015 at an opening price of EUR Following a brief weak period at the start of the year the shares reached their lowest value in the period under review at EUR on 15 January Subsequently, the Heliocentris shares profited among other things from positive comments by analysts from Berenberg Bank and Baader Bank. As of 14 April 2015, the share price rose to a half-year high of EUR The closing price on 30 June 2015 was EUR Over six months, there was therefore a price increase of 10.9%. In the first half of the year, the average daily trading volume of Heliocentris shares increased considerably compared to the previous year to 10,306 shares (previous year: 3,748 shares). With the change from the Entry Standard (Open Market) into the Prime Standard, Heliocentris shares were made accessible for a broader group of investors and their profile was raised among international investors and analysts. At the end of the first half of 2015, the market capitalisation of Heliocentris Energy Solutions AG was EUR 79.7 million on the basis of million shares (all data on the basis of Xetra prices). As a company in the strictly regulated Prime Standard of the Frankfurt Stock Exchange (first trading day on 20 May 2015), Heliocentris Energy Solutions AG meets all important publication and transparency standards. Lang & Schwarz AG acts as Designated Sponsor. Further information is available for potential investors in the Investor Relations section of the website at Annual General Meeting The Annual General Meeting of Heliocentris Energy Solutions AG was held in Berlin on 16 June 2015 with 68.5% of the share capital in attendance. The shareholders consistently approved the management s proposals with clear majorities. The shareholders approved the conduct of the Management and Supervisory Boards and declared themselves satisfied with the boards work. In addition, Mr Klaas de Boer was elected as a new member of the Supervisory Board at the Annual General Meeting. Klaas de Boer is Managing Director of Entrepreneur Fund Services Ltd., London, and Managing Partner of Entrepreneur Fund Management LLP, London. Mr de Boer takes over the position from Mr Oliver Krautscheid, who resigned his Supervisory Board post as of the end of the Annual General Meeting on 16 June 2015.

7 The Heliocentris share Heliocentris 6 Capital measures and shareholder structure As part of the sustainable financing of Heliocentris Energy Solutions AG s business activities, a cash capital increase with indirect pre-emption rights for shareholders was successfully implemented in May 2015, fully placing 3,250,289 shares. The cash capital increase generated gross issue proceeds of EUR 18.7 million for the company. The capital measure increased the share capital from EUR 10,991,944 to EUR 14,242,233. In the wake of the capital increase, the shareholder structure of Heliocentris Energy Solutions AG also changed. Since 19 May 2015, a total of around 29.3% of the shares have been held by institutional investors such as Ruffer, Fidelity Investments, etc. Family offices hold an approximately 29% stake in Heliocentris Energy Solutions AG. Around 16.9% is held by clean-tech funds, such as Entrepreneurs Fund, Conduit Ventures and ENERTEC. Around 59.8% of the shares are held in free float, to which investors with holdings of less than 5% are assigned according to the Deutsche Börse definition. Precise details on the shareholder structure are shown in the Share section of the Heliocentris Energy Solutions AG website. Analyst research The research houses Baader Bank/Helvea and Berenberg Bank covered Heliocentris Energy Solutions AG in the reporting period. In their studies, the Heliocentris share is recommended as a buy with price targets from EUR to EUR The full research studies are available on the Heliocentris Energy Solutions AG website at Share information Total number of shares 14,242,233 WKN (Securities Code Number) A1MMHE ISIN (International Securities DE000A1MMHE3 Identification Number) Bloomberg ticker symbol H2FA Reuters ticker symbol H2Fn Stock Category ordinary registered shares Stock exchange Frankfurt, FWB Stock Market Segment Regulated Market / Prime Standard Trading platforms XETRA, Frankfurt, Berlin, Düsseldorf, Stuttgart Designated Sponsor Lang & Schwarz AG

8 7 Heliocentris Interim Group Management Report Interim Group Management Report as at 30 June ORGANISATIONAL STRUCTURE OF THE GROUP Heliocentris develops, supplies and monitors energy management systems and hybrid energy solutions for stationary industrial applications, fuel cell-based back-up solutions for safeguarding critical infrastructure as well as fuel cell-based systems for customers in science and education, training and research worldwide. The company was founded in 1995 and has its head office in Berlin and offices in Munich, Wendlingen, Dubai, Yangon, Vancouver and Johannesburg. The Industry segment at Heliocentris is geared towards energy management systems, hybrid energy solutions, monitoring and management solutions and back-up power systems for distributed stationary energy solutions, in particular for mobile telecommunications. Within the mobile telecommunications sector Heliocentris offers its products and services to operators of mobile networks and mobile systems. The Academia segment, with its education, training and research (ETR) product lines, offers a range of systems for fuel cell and solar hydrogen technology in addition to other renewable energy technologies. Its customers are training facilities, research institutes as well as industrial customers. The Heliocentris Group consists of Heliocentris Energy Solutions AG, Heliocentris Academia GmbH in Berlin, Heliocentris Industry GmbH in Berlin, Munich and Wendlingen, Heliocentris Fuel Cell Solutions GmbH in Wendlingen, Heliocentris Energy FZE in Dubai, UAE, Heliocentris Energy Systems Inc. in Vancouver, Canada, and Heliocentris Italy s.r.l. in Rome, Italy, founded in May As a holding company, Heliocentris Energy Solutions AG mainly performs administrative functions and is responsible for the Group s management and its M&A and financial market activities. The operating divisions of production and logistics, commissioning and service and product management, product development, marketing and sales are located in the subsidiaries. At the start of the year, Heliocentris bundled its home power activities, which focus on providing zero-emissions power to homes and apartment buildings, in Heliocentris HPS GmbH. Heliocentris HPS GmbH was then sold for shares to HPS Home Power Solutions GmbH (HPS GmbH) as at 27 April Since this transaction, Heliocentris has held 48.57% in HPS GmbH. Due to the strict rules regarding how Heliocentris Energy Solutions AG s control over HPS Home Power Solutions GmbH is to be interpreted, the latter is consolidated in the interim financial statements. HELIOCENTRIS GROUP Heliocentris Energy Solutions AG 100% Heliocentris Academia GmbH 100% Heliocentris Industry GmbH 100% Heliocentris Energy FZE 100% Heliocentris Fuel Cell Solutions GmbH 100% Heliocentris Italy s.r.l. 48,57% HPS Home Power Solutions GmbH 100% Heliocentris Energy Systems Inc.

9 Interim Group Management Report Heliocentris 8 2. BUSINESS PERFORMANCE AND SIGNIFICANT EVENTS Sales and order backlog increased by 31% or EUR 3,047 thousand as against 30 June 2014 to EUR 12,856 thousand as at 30 June EUR 10,020 thousand of this amount is attributable to the Industry segment, representing a rise of EUR 2,692 thousand (37%) compared to the prior-year period. This increase primarily results from sales and orders for the supply and installation of hybrid power systems for mobile base stations in Myanmar amounting to EUR 4,813 thousand. The increase was further driven by supply, installation and maintenance contracts from the United Arab Emirates and from OEM customers with volumes of EUR 3,379 thousand and EUR 693 thousand, respectively. In the Academia segment, sales and order backlog rose from EUR 2,481 thousand in the prior-year period to EUR 2,836 thousand, representing an increase of EUR 355 thousand or 14%. On 25 March 2015, an additional agreement was reached with the former shareholders of Heliocentris Fuel Cell Solutions GmbH (formerly: FutureE Fuel Cell Solutions GmbH) conclusively settling their earn-out claims against the issue of 332,015 shares. This agreement covers all outstanding elements of the purchase agreement in connection with the acquisition of Heliocentris Fuel Cell Solutions GmbH. On 25 March 2015, the Management Board and the Supervisory Board resolved a capital increase against the issue of a total of 391,520 new shares to the former shareholders of Heliocentris Fuel Cell Solutions GmbH to cover their earn-out claims and other claims from the share purchase agreement, which was entered in the commercial register on 14 April On 6 April 2015, Heliocentris received the initial order worth around EUR 1 million for the modernisation and hybridisation of 30 Etisalat mobile base stations in the United Arab Emirates. This order was the first call-up under a frame agreement for the supply and installation of up to 500 systems. On 8 April 2015, Heliocentris announced a further order received from Emirates Integrated Telecommunications Company - du to supply and install 30 solar hybrid systems. Also in April, Heliocentris signed a cooperation agreement with the Japanese trading company INABATA. This agreement, initially concluded for a period of five years, grants INABATA the exclusive rights to sell all Heliocentris products in Japan, and for applications that are not target applications of Heliocentris, in Korea and the United States. In return, INABATA has undertaken to source products and solutions such as those of Heliocentris exclusively from Heliocentris. As part of the cooperation, INABATA subscribed to convertible bonds of Heliocentris in the amount of EUR 1 million. The issue price was set at 93.75%; all other conditions are the same as the convertible bonds issued last year: the coupon is 4% p.a., the conversion price is EUR per share and the bond will be repaid in January On 27 April 2015 Heliocentris contributed 100% of shares in Heliocentris HPS GmbH to HPS Home Power Solutions GmbH, Wildau, in return receiving an interest of 48.57% in HPS Home Power Solutions GmbH, Wildau. Also on 27 April 2015, following approval by the Bundesanstalt für Finanzdienstleistungsaufsicht (Ba- Fin - German Federal Financial Supervisory Authority), the securities prospectus was published for the implementation of a capital increase and the change to the Prime Standard. Gross issue proceeds of EUR 18.7 million were generated as part of a fully placed cash capital increase, with indirect pre-emptive rights for shareholders, against

10 9 Heliocentris Interim Group Management Report the issue of 3,250,289 shares from Authorised Capital 2014/I, which was entered in the commercial register on 13 May Following the issue of new registered shares, the share capital therefore increased from EUR 10,991,944 to EUR 14,242,233. At the end of June a global frame agreement for the supply and installation of solar hybrid systems based on Heliocentris Energy Management System was signed with a leading northern European supplier of mobile base stations. With around 186 million mobile network customers, the northern European company is one of the world s largest mobile network operators and is particularly active in Asia and Eastern Europe as well as in Scandinavia. This contract has a term of three years with the option to extend it by a further two years. 3. GENERAL ECONOMIC ENVIRONMENT In the first half of 2015 the global gross domestic product grew by around 2.5% compared to the prior-year period. Worldwide industrial output only grew by approximately 2% in the first six months of the year. The reason for the slow growth was the weak start to the year in the US and China. In the US, declining investments in the oil industry, the severe winter and the strong US dollar negatively impacted the dynamic of the economy. Conversely, the economy in the euro area benefited from the low oil prices and the weak euro during the reporting period. According to their most recent forecast this July, analysts at the IfW are projecting global growth of 3.3% in The global economy is forecast to grow by 3.8% in The current growth estimate of 1.5% slightly exceeds January s forecast for the euro area. The key drivers of growth remain the emerging markets, particularly the People s Republic of China, which could grow by around 6.8% this year. The US, where the economy is set to expand by 2.5% in the current financial year, remains a prime mover in the global economy. A slowdown in China s economic growth as well as uncertainty regarding growth in Europe continue to pose risks. However, Asia is not only China and remains the overall driving force in the global economy. The German Institute for Economic Research (DIW) predicts that German gross domestic product will expand by 1.8% compared to the previous year. A 1.9% change in gross domestic product compared to 2015 is forecast for RESEARCH AND DEVELOPMENT 4.1 Industry segment In the energy management systems and remote management servers product lines the focus was on two new developments: Development of the next generation of the Energy Management System (EMS 3.0) that uses the current hardware (EM 2.0) to allow grid-centred monitoring and optimisation of decentralised energy systems. A beta version of the new system is expected to be available during Development of a software suite that allows automated monitoring and optimisation of energy systems from within the data centre and enables these systems to be connected directly to the network operators ERP systems. This enables network operators firstly to optimise the lifetime and operating costs of the respective systems in the field and secondly to operate the systems more efficiently from the data centre. A beta version has recently been completed. Commercial availability is scheduled for the fourth quarter of In the hybrid solutions product line a new development project was launched for the integration of lithium-ion batteries in diesel hybrid solutions. The aim here is to provide more compact solutions in the future. Developments in the fuel cell systems product line focussed on two main areas in the first half of the year: Firstly, the costs of the Jupiter system were reduced further. Among other things, EM 2.0 was integrated into the fuel cell system solutions as a controller. In

11 Interim Group Management Report Heliocentris 10 addition, thanks to operating strategy improvements the lifetime of Jupiter fuel cell modules can be virtually doubled, which means significant savings in operating costs for customers. This is mainly significant for use in bad grid applications, where the fuel cell has a life of > 500 hours per year. Secondly, a new version of the Jupiter fuel cell system was developed that contains an integrated electrolysis module based on Acta technology and a hydrogen tank. This will make it possible in future to offer hydrogen-based solutions in markets where there is not yet a hydrogen cylinder infrastructure. 4.2 Academia segment The Academia segment s activities focussed primarily on maintaining the existing product range. The development of the innovative HyDrive - Electro Vehicle Trainer, a product developed as part of the publicly funded ETUDE project, was successfully completed and is now in the commercialisation phase. The first orders have already been placed and the first products will be delivered in the third quarter of Development of the new version of the new energy lab was also completed successfully. The first of these systems have already been delivered to customers in RESULTS OF OPERATIONS 5.1 Order and sales development Sales increased by EUR 1,151 thousand (26%) from EUR 4,476 thousand in the first half of 2014 to EUR 5,627 thousand in the first half of EUR 3,664 thousand or 65% of sales in the first half of the year related to the Industry segment and, in particular, to the supply and installation of turnkey energy efficiency solutions for mobile base stations in Myanmar. The share of sales of the Academia segment amounted to 35% or EUR 1,964 thousand, EUR 1,010 thousand of which was due to the delivery of a centre of excellence in Ghana. Order intake, a key performance indicator for sales performance, increased by EUR 2,596 thousand (36%) from EUR 7,258 thousand in the first half of 2014 to EUR 9,855 thousand in the first half of EUR 8,221 thousand of order intake in the first half of 2015 related to the Industry segment and EUR 1,634 thousand to the Academia segment. The sales of the Industry and Academia segments break down by region as follows: Sales by region in EUR Industry Academia First half of First half of First half of First half of Germany, Austria, Switzerland 386, ,100 84, ,648 Rest of Europe 104, , ,387 America 18,827 65, , ,296 Middle East and North Africa 570, , ,213 91,835 Rest of Afrika - - 1,012, Asia and Australia 2,583,347 2,377, , ,648 Total 3,663,636 3,578,287 1,963, ,732 All amounts have been individually rounded in The international share of total sales rose from 80% in the first half of 2014 to 92% in the first half of 2015.

12 11 Heliocentris Interim Group Management Report 5.2 Earnings development Cost of sales The cost of sales comprises staff costs, costs of materials, purchased services, travel and other expenditure that can be directly and indirectly assigned to the products, projects and services sold. Projects usually have a term of up to one year, hence the costs can vary from year to year depending on their complexity and the number of projects performed. In the first half of 2015, the cost of sales amounted to EUR 6,052 thousand. In the reporting period, the cost of sales as a share of sales therefore amounted to 108%, thus remaining approximately at the level of the previous year (105%). The slight increase in the profit contribution (sales minus variable costs) was more than offset, largely as a result of the vacancy costs in the production of fuel cell-based power back-up systems in Wendlingen. Gross profit The Group s gross loss increased by 105% or EUR 217 thousand from EUR 207 thousand in the first half of 2014 to EUR 424 thousand in the first half of The gross profit in relation to sales declined to -8% in the first half of 2015 after -5% in the first half of The cost of sales contains a significant proportion of fixed costs. Owing to delays in acquiring new customers, the positive variable profit contributions were still not sufficient to cover fixed cost of sales in the first half of the year. In light of the successful new customer acquisitions, particularly in the last few months, significantly higher sales are expected in the second half of 2015 than in the first six months of the year. Along with this, the company is planning to keep fixed costs at the same level as in the first six months of the year, which if it continues to anticipate positive profit contributions should result in a significant improvement in gross profit in the second half of General and administrative expenses The general and administrative expenses of the Group comprise salaries for management and administrative employees, legal and consulting costs, travel expenses, property expenses and overheads as well as the costs for the segment transformation carried out in May The general and administrative expenses increased by EUR 1,381 thousand or 76% compared to the first half of 2014 to EUR 3,199 thousand in the first half of This rise is due to non-recurring costs of EUR 671 thousand arising in relation to the capital increase and the segment transformation in May 2015 as well as legal and consulting costs for spinning off Heliocentris HPS GmbH and founding new enterprise Heliocentris Italy s.r.l. The costs of EUR 1,490 thousand directly attributable to the capital increase were deducted directly from equity and therefore are not reported in profit or loss. Operating costs climbed by EUR 709 thousand due to the acquisition of FutureE Fuel Cell Solutions GmbH (now Heliocentris Fuel Cell Solutions GmbH) in 2014 as well as higher administrative costs as a result of listing on the Prime Standard and introducing the International Financial Reporting Standards. Sales and marketing expenses Sales and marketing expenses primarily comprise salaries and commission for the Group s sales and marketing staff, consulting costs, mainly for consulting services in sales, travel expenses, commission for independent sales representatives, office rent, market promotion and other expenses. Sales and marketing expenses increased by EUR 334 thousand (13%) from EUR 2,625 thousand in the first half of 2014 to EUR 2,959 thousand in the first half of Adjusted for non-recurring special write-downs amounting to EUR 501 thousand in the first quarter of 2014, sales and marketing expenses rose by EUR 835 thousand. This rise is essentially due to pro rata sales and marketing expenses resulting from the acquisition of FutureE Fuel Cell Solutions GmbH, now Heliocentris Fuel Cell Solutions GmbH, and the expansion of sales activities in Asia.

13 Interim Group Management Report Heliocentris 12 Research and development expenses R&D costs mainly relate to development activities in connection with technologies and products for the advancement of the Group s platform-based technologies. R&D costs comprise wages and salaries, purchased services, R&D materials for testing and analysis and travel expenses. At EUR 1,222 thousand in the first half of 2015 after EUR 1,148 thousand in the first half of 2014, R&D costs were virtually constant (up EUR 75 thousand or 6%). In addition, own work capitalised for product developments amounted to EUR 1,269 thousand in the first half of 2015 (compared to EUR 1,359 thousand in the first half of 2014). The rise in R&D costs due to the integration of Heliocentris Fuel Cell Solutions GmbH was largely offset by higher income from subsidies. Other operating income The Group s other operating income includes income from the sale of securities, the reversal of provisions, exchange rate gains and insurance compensation. Total other operating income declined by EUR 353 thousand or 50% from EUR 699 thousand in the first half of 2014 to EUR 347 thousand in the first half of Other operating income in the first half of 2015 essentially comprised income from the reversal of provisions amounting to EUR 210 thousand, insurance compensation amounting to EUR 41 thousand and income from exchange rate effects (EUR 55 thousand). Other operating expenses Other operating expenses mainly report the adjustment in liabilities from additional purchase price claims from the acquisition of Heliocentris Fuel Cell Solutions GmbH (formerly: FutureE Fuel Cell Solutions GmbH) of EUR 408 thousand. The additional purchase price payment to the former shareholders of Heliocentris Fuel Cell Solutions GmbH was settled in shares. The change in value in the period from 1 January 2015 to 25 March 2015 (the date of the resolution to increase capital against shares) resulting from the rise in the price of shares was recognised in profit or loss. Amortisation, depreciation and write-downs of intangible and tangible assets epreciation of property, plant and equipment and amortisation of intangible assets rose sharply by EUR 1,206 thousand from EUR 266 thousand in the first half of 2014 to EUR 1,472 thousand in the first half of This resulted firstly from the steep rise in writedowns on own work capitalised (up EUR 549 thousand) and also from the write-downs in connection with the technologies purchased as part of the acquisition of Heliocentris Fuel Cell Solutions GmbH in the amount of EUR 614 thousand. Financing costs and similar expenses Financing costs and similar expenses amounted to EUR 728 thousand in the first half of 2015, a rise of EUR 315 thousand or 76% as compared to EUR 413 thousand in the first half of This rise is the result firstly of the convertible bonds with a 4% coupon and discount of 10% or 6.25% which were issued in three tranches in January and April 2014 and April 2015 and, secondly, of the interest and discount relating to the loans for EUR 2.5 million obtained in March which were reduced in May Total comprehensive income (loss) for the reporting period At EUR -10,637 thousand the total comprehensive income (loss) for the period was EUR 4,845 thousand or 84% higher than in the first half of 2014 (EUR -5,792 thousand). EUR -10,583 thousand of the total comprehensive income (loss) is attributable to equity holders of the parent. Due to delays in acquiring new customers in the first half of 2015, no additional profit contributions were generated in comparison to 2014, which meant that the rise in costs, which was essentially due to the acquisition of FutureE Fuel Cell Solutions GmbH (subsequently Heliocentris Fuel Cell Solutions GmbH) and the non-recurring costs relating to the segment transformation and restructuring of the company, were not offset.

14 13 Heliocentris Interim Group Management Report In light of the successful new customer acquisitions over the last few months, significantly higher sales are expected in the second half of 2015 than in the first six months of the year. The profit contributions that this generates are expected to result in a significant improvement in profit compared with the first half of the above payments by customers for outstanding trade receivables. As at 30 June 2015 the company had cash and cash equivalents of EUR 12,699 thousand (31 December 2014: EUR 2,258 thousand). 6. FINANCIAL POSITION AND NET ASSETS ASSETS The total assets of the Group increased by EUR 9,111 thousand to EUR 41,915 thousand as at 30 June 2015 as against 31 December 2014 (EUR 32,804 thousand). The increase was essentially due to the inflow of cash from the capital increase in May 2015, an increase in inventories of EUR 1,283 thousand and a reduction in trade receivables of EUR 2,540 thousand as key receivables were paid by customers in the Industry segment. Investment and non-current assets Non-current assets remained virtually constant as against 31 December 2014 (EUR 19,869 thousand) at EUR 19,834 thousand as at 30 June At EUR 1,413 thousand, Heliocentris net investment volume remained at approximately the same level as the previous year (EUR 1,463 thousand) in the first half of 2015 and largely relates to own work capitalised for product developments. This amounted to EUR 1,269 thousand in the first half of 2015 after EUR 1,329 thousand net in the first half of Current assets In order to service the increased order intake in the third quarter of 2015, inventories were raised by EUR 1,283 thousand or 50% to EUR 3,868 thousand in the reporting period from EUR 2,585 thousand as at 31 December Trade receivables and other receivables declined sharply by EUR 2,540 thousand or 32% from EUR 7,876 thousand as at 31 December 2014 to EUR 5,336 thousand as at 30 June 2015 as a result of EQUITY AND LIABILITIES Equity On 25 March 2015, the Management Board and the Supervisory Board resolved a capital increase against the issue of 391,520 new shares to the former shareholders of Heliocentris Fuel Cell Solutions GmbH (formerly: FutureE Fuel Cell Solutions GmbH) to settle their earn-out claims and other claims from the purchase agreement, which was entered in the commercial register on 14 April This capital increase covers all outstanding elements of the purchase agreement in connection with the acquisition of FutureE Fuel Cell Solutions GmbH. The share capital of Heliocentris Energy Solutions AG climbed by EUR 391,520 from EUR 10,600,424 as at 31 December 2014 to EUR 10,991,944 as at 31 March Consequently, the capital reserve was increased by EUR 1,958 thousand. Based on resolutions by the Management Board and the Supervisory Board on 24 April and 12 May 2015, the share capital of Heliocentris Energy Solutions AG has increased from EUR 10,991,944 to EUR 14,242,233 as a result of the issue of new registered shares as part of a fully placed cash capital increase, with indirect pre-emptive rights for shareholders, against the issue of 3,250,289 shares from Authorised Capital 2014/I. The capital increase was entered in the commercial register on 13 May After netting against the costs of the capital increase, the capital reserve rose by EUR 16,354 thousand as a result of the issue of new shares. Equity changed by EUR 9,657 thousand or 83% from EUR 11,692 thousand as at 31 December 2014 to EUR 21,349 thousand as at 30 June The equity ratio was 51% as at 30 June 2015 after 36% as at 31 December 2014.

15 Interim Group Management Report Heliocentris 14 Liabilities Non-current liabilities rose by EUR 1,908 thousand (20%) from EUR 9,424 thousand as at 31 December 2014 to EUR 11,332 thousand and mainly comprise borrowings relating to the convertible bonds issued in three tranches in January and April 2014 and April The amount repayable on the convertible bonds due in January 2017 is EUR 11,231 thousand. This item also contains a subordinated loan from an external investor to HPS Home Power Solutions GmbH in the nominal amount of EUR 720 thousand. The provisions reported under current liabilities increased by EUR 1,033 thousand (35%) from EUR 2,978 as at 31 December 2014 to EUR 4,011 thousand as at 30 June This rise is largely attributable to EUR 351 thousand in provisions for the costs of the capital increase carried out in May 2015, an increase of EUR 216 thousand in warranty provisions and a rise of EUR 163 thousand in provisions for holiday and overtime. Trade payables were reduced significantly in the reporting period by EUR 3,210 thousand or 55% from EUR 5,812 thousand as at 31 December 2014 to EUR 2,601 thousand as at 30 June 2015 as a result of payments on trade payables. The other current liabilities item declined by EUR 444 thousand (15%) from EUR 2,898 thousand as at 31 December 2014 to EUR 2,622 thousand. As at 31 December 2014 this item mainly comprised EUR 1,941 thousand in additional purchase price claims of former shareholders of Heliocentris Fuel Cell Solutions GmbH, which were reclassified to equity under the capital increase resolved by the Management Board and the Supervisory Board on 25 March 2015 after adjustment for the change in value by 25 March As at 30 June 2015 this item primarily contained advance payments in the amount of EUR 1,506 thousand for the supply of hybrid power systems to Myanmar as well as liabilities amounting to EUR 829 thousand for wages and salaries, wage taxes and social security contributions. 7. RISK REPORT Heliocentris is exposed to a series of risks and opportunities that are described in detail in the risk report of the 2014 annual report and in the securities prospectus of 27 April The 2014 annual report and the securities prospectus (approved version as at 27 April 2015) are available at Over the course of the first six months of the 2015 financial year, the Management Board did not detect any significant additions or changes to the risks and opportunities as described in the 2014 annual report and the securities prospectus of 27 April OUTLOOK Based on current business performance, and in particular on the successful acquisition of new customers in the last few months before this report, for the second half of 2015 the Management Board expects a significantly better result compared to the first half of the year. These forecasts for the expected development of the Heliocentris Group include careful consideration of the risks and opportunities in the development of the market environment. Actual results may differ considerably from forecasts if, for example, the expansion of sales activities and new products do not result in increased sales or an improved earnings situation, or if these fail to materialise on account of greater competitive pressure.

16 15 Heliocentris Interim Group Management Report 9. SUPPLEMENTARY REPORT On 17 July 2015 Heliocentris announced a further major order from Asia. The frame agreement covers the supply and installation of turnkey hybrid power solutions for the development of 152 new mobile base stations in Myanmar and has a volume of around EUR 6 million. Overall, as at 28 August 2015, sales and order intake combined total EUR 21.9 million and are thus EUR 7.3 million higher than in the prior-year period and already EUR 3.0 million higher than total sales in There were no other significant events that could have a material impact on the business performance of the Group after the end of the reporting period. Berlin, den 28. August 2015 Ayad Abul-Ella, Chief Executive Officer (CEO) Dr. Henrik Colell, Chief Technology Officer (CTO)

17 16 Heliocentris Consolidated half-yearly financial report as at 30 June 2015 // Condensed consolidated statement of profit or loss Condensed consolidated statement of profit or loss 6 months ended 3 months ended Note 30 June 2015 Unaudited 30 June 2014 Unaudited 30 June 2015 Unaudited 30 June 2014 Unaudited EUR EUR EUR EUR Sale of goods 4,989, ,783, ,275, ,287, Rendering of services 638, , , , Total revenue 5,627, ,476, ,686, ,757, Cost of sales -6,051, ,683, ,894, ,548, Gross profit (loss) -424, , , , General and administrative -3,198, ,818, ,922, ,064, Sales and marketing -2,959, ,624, ,497, ,117, Research and development -1,222, ,148, , , Other operating income (6) 346, , , , Other operating expenses (6) -409, Amortisation, depreciation and write-downs of intangible and tangible assets (7) -1,471, , , , Other interest and similar income 24, , Finance cost and similar expense (8) -727, , , , Profit (loss) before tax -10,041, ,775, ,293, ,650, Income tax -555, , , , Profit (loss) for the period -10,597, ,787, ,848, ,661, Other comprehensive income Items which may be subsequently reclassified to profit or loss Exchange differences on translation of foreign operations -39,124,73-4,565,06-30,256,54 233,39 Other comprehensive income for the period -39,124,73-4,565,06-30,256,54 233,39 Total comprehensive income for the period -10,636,840,17-5,791,918,50-5,879,227,64-2,661,567,08 Profit (loss) attributable to: Equity holders of the parent -10,543,683,51-5,787,353,44-5,794,939,17-2,661,800,47 Non-controlling interests -54,031,93 0,00-54,031,93 0,00 Total comprehensive income attributable to: Equity holders of the parent -10,582,808,24-5,791,918,50-5,825,195,71-2,661,567,08 Non-controlling interests -54,031,93 0,00-54,031,93 0,00 Earnings per share Basic, profit (loss) for the period attibutable to equity holders of the parent -0,90-0,67-0,45-0,30

18 Consolidated half-yearly financial report as at 30 June 2015 // Condensed consolidated statement of financial position Heliocentris 17 Condensed consolidated statement of financial position Note 30 June 2015 Unaudited EUR 31 December 2014 Audited EUR ASSETS Non-current assets Property, plant and equipment 1,090, ,161, Intangible assets 14,690, ,686, Goodwill 4,002, ,970, Investments 50, , Current assets Inventories 3,867, ,585, Trade and other receivables (9) 5,335, ,875, Prepaid expenses 179, , Cash and cash equivalents 12,698, ,257, Total assets 41,915, ,804, LIABILITIES AND EQUITY Non-current liabilities Interest-bearing loans and borrowings * (10) 11,084, ,239, Provisions 86, , Other liabilities (11) 160, , Current liabilities Provisions 4,010, ,977, Trade payables 2,601, ,811, Other liabilities (11) 2,622, ,898, Total liabilities 20,566, ,111, Equity Share capital (12) 14,242, ,600, Capital reserve (12) 60,071, ,715, Other capital reserve (12) 795, , Foreign currency translation reserve -75, , Accumulated deficit -43,083, ,307, Current period result 10,543, ,782, Total equity attributable to parent 21,390, ,692, Non-controlling interests -57, Total equity 21,348, ,692, Total equity and liabilities 41,915, ,804, * The convertible bonds have been reported under this item since 1 January 2015.

19 18 Heliocentris Consolidated half-yearly financial report as at 30 June 2015 // Condensed consolidated statement of changes in equity Condensed consolidated statement of changes in equity ATTRIBUTABLE TO THE OWNERS OF THE PARENT Share capital Capital reserve Other capital reserve Foreign currency translation reserve Accumulated deficit Total Noncontrolling interests Total equity EUR EUR EUR EUR EUR EUR EUR EUR As at 1 January ,650, ,784, , , ,307, ,756, ,00 10,756, Result of the period -5,787, ,787, ,787, Other comprehensive income -4, , , Total comprehensive income -4, ,787, ,791, ,00-5,791, Capital increase 250, ,250, ,500, ,500, Issue of convertible bond 522, , , Share-based payment transactions 138, , , Transaction costs, net of tax ,71-6, , ,37 As at 30 June 2014 (unaudited) 8,900, ,26 307, , ,095, ,62 0, ,62 As at 1 January ,600, ,715, , , ,090, ,692, ,692, Result of the period ,51-10,558, ,93-10,597, Other comprehensive income -39, , , Total comprehensive income -39, ,51-10,598, ,93-10,636, Capital increase 3,250, ,438, ,689, ,689, Issued shares to settle the outstanding purchase price claims in connection with the acquisition of a subsidiary 391, ,957, ,349, ,349, Issue of convertible bond 94, , , Share-based payment transactions 198, ,595.72* 206, , Acquisition of noncontrolling interests -1, , , , Transaction costs, net of tax -1,040, ,041, ,041, As at 30 June 2015 (unaudited) 14,242, ,071, , , ,46 21,390, ,41 21,348, * Transfer relating to forfeited options from the Employee Stock Option Programme due to cancellation agreement.

20 Consolidated half-yearly financial report as at 30 June 2015 // Condensed consolidated statement of cash flows Heliocentris 19 Condensed consolidated statement of cash flows 6 months ended Note 30 June 2015 Unaudited EUR 30 June 2014 Unaudited EUR Operating activities Profit (loss) for the period -10,597, ,787, Income tax expense 555, , Net profit (loss) before tax -10,041, ,775, Non-cash adjustments to reconcile profit before tax to net cash flows: Depreciation and impairment of property, plant and equipment 185, , Amortisation and impairment of intangible assets 1,286, , Fair value measurement of financial liabilities 408, Other non-cash adjustments ,03 1,565, Working capital adjustments -225, ,646, Interest paid -312, , Net cash flows used in / from operating activities -6,827, ,594, Investing activities Purchase of property, plant and equipment -128, , Government grants received , Interest received , Purchase of intangible assets -1,289, ,348, Acquisition of subsidiary net of cash (14) 677, Net cash flows used in / from investing activities -740, ,440, Financing activities Proceeds from capital increases ,34 1,473, Proceeds from borrowings 2,375, Repayment of borrowings -2,500, In-/decrease of finance lease liabilities 27, , Issue of convertible bond 928, ,098, Net cash flows used in / from financing activities ,32 10,591, Net in-/decrease in cash and cash equivalents 10,461, ,556,139,59 Net foreign exchange difference -20, , Cash and cash equivalents at the beginning of the period 2,257, ,428, Cash and cash equivalents at the end of the period 12,698, ,980,487.59