Quarterly Report • Nov 13, 2009
Quarterly Report
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SMA Solar Technology AG
| Q1 – Q3 | Q1 – Q3 | Change | Year | ||
|---|---|---|---|---|---|
| SMA Group | 2009 | 2008 | 2008 | ||
| Sales | € million | 559.5 | 519.3 | 8 % | 681.6 |
| Export ratio | in % | 37.7 | 41.8 | 42.3 | |
| Capital expenditure1 | € million | 46.8 | 44.5 | 5 % | 62.2 |
| Depreciation | € million | 11.4 | 6.2 | 84 % | 8.9 |
| Operating profit (EBIT) | € million | 120.8 | 131.8 | – 8 % | 167.4 |
| Operating profit margin | in % | 21.6 | 25.4 | 24.6 | |
| Consolidated net profit | € million | 86.0 | 94.0 | – 9 % | 119.5 |
| Earnings per share2 | € | 2.48 | 2.71 | 3.44 | |
| Employees3 | 3,174 | 2,427 | 31 % | 2,513 | |
| in Germany | 3,010 | 2,323 | 30 % | 2,400 | |
| Abroad | 164 | 104 | 58 % | 113 | |
| SMA Group | 09/30/2009 | 12/31/2008 | Change | ||
| Total assets | € million | 596.4 | 469.6 | 27 % | |
| Equity | € million | 332.1 | 280.8 | 18 % | |
| Equity ratio | in % | 55.7 | 59.8 | ||
| Net working capital4 | € million | 138.4 | 78.0 | 77 % | |
| Net working capital ratio5 | in % | 19.2 | 11.4 | ||
| Cash and cash equivalents | € million | 253.5 | 261.0 | – 3 % | |
1 Excl. finance leases, excl. R&D
2 Converted to 34,700,000 shares
3 Average during the period; incl. temporary employees
4 Inventories and trade receivables minus trade payables
5 Relating to last twelve months' (LTM) sales
in megawatts
in million Euro
519.3 559.5
131.8
120.8
in Euro
(converted to 34,700,000 shares)
the future of solar technology
the sma share
SMA Solar Technology AG develops, produces and sells solar inverters and monitoring systems for photovoltaic applications. SMA is the world's largest producer in this segment and is the only vendor that has a product range with the matching inverter type for any module type and any power class. This applies for grid tied applications as well as island and backup operation.
The inverter is technologically the most important component in any solar power system: it converts the direct current generated in photovoltaic cells into alternating current suitable for the grid. In addition, it is an intelligent system manager, responsible for yield monitoring and grid management. SMA's solar inverters are characterized by a particularly high efficiency. The Sunny Mini Central produced by SMA already has an efficiency of over 98 %, which allows for increased electricity production.
SMA's business model is driven by technological progress. Due to its flexible and scalable production, SMA is in a position to quickly respond to customer demands and promptly implement product innovations. This allows the Company to easily keep pace with the dynamic market trends of the photovoltaic industry and at the same time absorb short-term fluctuations in demand for solar inverters.
SMA Solar Technology AG is headquartered in Niestetal, near Kassel, and is represented by sales and service subsidiaries on four continents in eleven countries. This group of companies employs more than 3,500 employees (incl. temporary staff) and has been distinguished several times in previous years with awards for its outstanding performance as an employer. Since June 27, 2008, the Company has been listed in the Prime Standard of the Frankfurt Stock Exchange (S92), and since September 22, 2008, the Company's shares have been listed in the TecDAX. In 2008, SMA generated an earnings before interest and taxes (EBIT) of more than € 165 million from a turnover of more than € 680 million. This corresponds to an EBIT margin of over 24 %.
In September, about 300 guests participated in the yearly main event of Sunny PRO Club (SMA's partnership program for solar professionals) in Niestetal, Germany. The agenda included amongst other items a guided tour through the new production facility for solar inverters.
Freefloat: 25.70 %
Dipl.-Ing. Günther Cramer: 19.09 % Dipl.-Ing. Peter Drews: 19.11 % Dipl.-Ing. Reiner Wettlaufer: 19.11 % Prof. (em) Dr. Ing. Werner Kleinkauf: 16.99 %
The SMA shares saw a positive development in the first nine months of the current fiscal year. From the beginning of January to the end of September, the price of SMA shares climbed from € 39.40 (January 2) to € 70.60 (September 30, "each" Xetra closing price), which corresponds to an increase of 78 %. This means that SMA was among the top performers in the solar sector in the period under review. In the same period, the TecDAX increased by only 44 % and the DAX by only 14 %.
The price development reflects SMA's positive course of business. After a weak first quarter, group sales increased sharply in the following months and resulted in an all-time high of € 312 million for the third quarter. The extraordinary flexibility of the business model has again proven its worth. In the first quarter SMA responded quickly to the weak demand and adjusted its capacities. In spite of a decline in sales of 50 % compared to the fourth quarter of 2008, SMA was able to close the quarter with a positive result. The development of the worldwide photovoltaics market was dynamic during the rest of the year. Therefore, SMA has more than tripled the monthly output volume by the third quarter. SMA's success strategy was acknowledged by the capital market: the price gain in the second quarter amounted to 45 %; the shares closed at € 52.77 (June 30, Xetra closing price). In addition, the announcement of the results for fiscal 2008, including the proposal on dividend distribution and the Capital Markets Day, had a positive influence on the share price. The sales and earnings forecast given for the second quarter was also reflected in the good performance. During
Basic share data
| Security code number (WKN) | A0DJ6J |
|---|---|
| ISIN | DE000A0DJ6J9 |
| Stock market code | S92 |
| Ticker symbols | Reuters S92G.DE / Bloomberg S92.GR |
| Listing | Prime Standard of the Frankfurt Stock Exchange |
| Prime sector | Industrial goods |
| Industry group | Renewables |
| Share class | No-par-value ordinary bearer shares |
| Share capital | € 34.7 million |
| Number of shares | 34.7 million |
| First listing | June 27, 2008 |
| Relevant index | TecDAX More indices at Deutsche Börse AG (www.deutsche-boerse.com) RENIXX® – Renewable Energy Industrial Index World PPVX Photon Photovoltaic Stock Index |
the volatile summer months, the price of SMA shares ranged between € 50.00 and € 60.00. In the middle of August, the semi-annual results and the forecast for the total year, accompanied by the acquisition of a technology platform for module inverters, introduced again an upwards trend. By the end of the quarter, the stock price increased to € 70.06 (September 30, Xetra closing price).
The volume-weighted average price was € 46.03 during the first nine months.
The average trading volume of SMA shares was 59,461 in the period under review (XETRA) and, thus, about 12 % above the value of the previous year of 52,858 shares per day.
SMA intensified its investor relations activities in 2009. Through three conferences and eight road shows, SMA has been looking regularly for dialogue with investors in the European financial centers. SMA presented itself, among others, at the LBBW Renewables Conference, the Commerzbank Growth & Responsibility Conference and the Renewable Energy Forum of West LB. SMA introduced itself for the first time to investors in Lugano, Brussels, Copenhagen, Vienna and Amsterdam. In total, SMA had about 140 individual discussions with institutional investors in the first nine months of 2009 and answered numerous questions from private investors on financial indicators, the company's positioning
and its business strategy. The press conference on the annual results of the 2008 fiscal year took place on March 31, in the presence of Günther Cramer and Pierre-Pascal Urbon, in the Press Club Frankfurt. On the same day, Pierre-Pascal Urbon also held a conference call for analysts.
In April, about 50 financial analysts and institutional investors took part in the first ever "Capital Markets Day" (information day for capital market representatives) of SMA at its headquarters in Niestetal. Günther Cramer and Pierre-Pascal Urbon explained the corporate strategy and addressed in particular the main points of technology leadership, worldwide expansion and the outstanding flexibility of the Company. The management presentation was followed by a tour of the new CO2 -neutral inverter plant with an annual production capacity of up to 4 Gigawatt.
On June 10, SMA held its first Annual General Meeting as a listed stock corporation in the Kongress Palais Kassel. Approximately 800 shareholders were present, which corresponds to a share of 88.41 % of the voting capital stock. The resolutions regarding all agenda items were adopted with a majority of more than 99 %. A distribution of € 1.00 per share from the 2008 balance sheet profits was also adopted. In total, a dividend amounting to € 34.7 million was paid. The distribution ratio was 29 % in relation to the group net income of 2008. All relevant documents regarding this year's Annual General Meeting are available on the internet site at www.SMA.de/Hauptversammlung for download.
SMA aims at a shareholder-oriented communication policy which is characterized by the principles of transparency,
| Institution | Analyst |
|---|---|
| Bank of America/Merrill Lynch | Claus Roller |
| Barclays Capital | Rupesh Madlani / Arindam Basu |
| Berenberg Bank | Lars Dannenberg |
| Bryan, Garnier & Co | Ben Lynch |
| Cheuvreux | Philipp Bumm |
| Citi | Vidya Anant |
| Commerzbank | Robert Schramm |
| Deutsche Bank | Hermann Spellmann |
| DZ Bank | Sven Kürten |
| Goldman Sachs Group | Stephen Benson |
| HSBC Trinkaus & Burkhardt | Christian Rath |
| HVB UniCredit | Michael Tappeiner |
| Jefferies International | Michael McNamara |
| Landesbank Baden-Württemberg | Anja-Katharina Bohlen |
| Macquarie Group | Dr. Benjamin Kluftinger |
| MerckFinck & Co | Theo Kitz |
| Nomura | Catharina Saponar |
| UBS | Patrick Hummel |
| West LB | Peter Wirtz |
as of September 30, 2009
continuity and trustworthiness. The main objectives of investor relations work are the building-up and maintenance of long-term and trusting relationships with all players in the capital markets.
The SMA Share The SMA Share 11
SMA has made a vast amount of information about the Company and its shares available on its Investor Relations website at www.IR.SMA.de for investors, financial analysts, and all other interested parties. This information includes financial reports, presentations, statutory company statements and the financial calendar.
SMA will publish the 2009 Annual Report on its website at www.SMA.de/IR/Finanzberichte on March 31, 2010.
Within the 15 months following the IPO, 19 banks and financial institutions started reporting on SMA shares. Jefferies International, Nomura and Bryan, Garnier & Co initiated coverage in the third quarter of 2009. The above list shows the range of sell side coverage.
Whilst the world economy faced a downward trend at the beginning of the year, it appears to have bottomed out and started to improve again in autumn 2009. According to estimates of the Kiel Institute for the World Economy (IfW) of September 9, 2009, the world economy has started to recover in the summer of this year. Although the situation on the global financial markets has eased significantly, the problems of the international financial system have not yet been overcome in their entirety. Through the resolutions adopted at the Pittsburgh G-20 Summit at the end of September, the heads of states and governments have agreed on a stricter regulation of the financial markets. Because of a positive development of economic sentiment indicators, increasing order inflows and an extensive revival of production, the IfW expects a further increase in global production for the remainder of 2009.
The photovoltaics sector has separated from the overall economic development in the first nine months 2009. SMA is expecting growth of the worldwide photovoltaics market in relation to the gigawatt output. Many countries have adopted subsidy programs that will promote the expansion of photovoltaics. In addition, the photovoltaics sector benefits from programs to stimulate the economy, which have been adopted by several industrial nations. Furthermore, the solar module prices, which have decreased significantly compared to the previous year, have led to a stronger demand in photovoltaics systems. At present, any restrictions regarding the financing of small and medium-sized projects are not recognizable. The funding of large solar projects improved in the third quarter in comparison to the first six months of this year. According to its own estimates, Germany has been the largest photovoltaics market worldwide during the first nine months of 2009, and the major foreign markets included the Benelux countries, North America, France, Italy and Australia. The importance of the Spanish photovoltaics market fell significantly in the first nine months of 2009 compared to the previous year. This is due mainly to changed subsidy conditions.
In the first nine months of the 2009 fiscal year, the SMA Group achieved sales of € 559.5 million, which corresponds to an increase of 7.7 % as compared to the same period of the previous year (Q1 – Q3 2008: € 519.3 million). On account of the strong demand for SMA photovoltaic inverters, the third quarter contributed a record value of € 312.4 million to sales (Q3 2008: € 226.7 million). This means that more than half of sales in the first nine months of 2009 was generated in the third quarter of 2009. Accordingly, the sales revenues of the third quarter 2008 have been exceeded by 37.8 %.
The SMA Group was able to benefit from its worldwide distribution and service network in the first nine months of 2009. Sales generated in foreign markets amounted to € 215.7 million (Q1 – Q3 2008: € 225.6 million). Due to the strong domestic demand, the export share of 37.7 % was below the previous year's figure (Q1 – Q3 2008: 41.8 %). The most important foreign markets were the Benelux countries, followed by North America, France, Italy and Australia. With the objective of expanding its global presence and positioning itself early on in emerging photovoltaics markets, SMA established distribution and service companies in the Czech Republic and Belgium in the first nine months of the current fiscal year. These companies are active both for the Medium Power Solutions segment and the High Power Solutions segment. In addition, SMA formed service companies in Germany and Portugal at the end of September 2009. Furthermore a service company in the United Arab Emirates was established at the beginning of October.
SMA has increased its profitability in the current fiscal year significantly from quarter to quarter. Earnings before interest and taxes (EBIT) amounted to € 120.8 million in the period under review (Q1 – Q3 2008: € 131.8 million). The year-on-year decline is due predominantly to the weaker business development in the first six months, a change in the product mix and the scheduled building up of structural costs. In the third quarter, SMA benefitted from the good scalability of the business model and generated EBIT of € 85.8 million (Q3 2008: € 63.1 million). The third quarter's EBIT margin of 27.5 % is only slightly below the all-time high of the previous year of 27.8 %. The main reasons for the distinct increase in profitability in the third quarter were the shift in demand to high-performance inverters and the better utilization of fixed costs. The high level of liquidity resulted in a very positive financial result of € 4.0 million in the reporting period (Q1 – Q3 2008: € 1.6 million). The SMA Group's consolidated profit was € 86.0 million (Q1 – Q3 2008: € 94.0 million) in the reporting period. This equals a return on sales of 15.4 % (Q1 – Q3 2008: 18.1 %) and earnings per share of € 2.48 (Q1 – Q3 2008: € 2.71).
In the Photovoltaics Technology division, external sales in the first nine months of 2009 increased by 7.6 % to € 545.5 million (Q1 – Q3 2008: € 506.9 million). The inverter output sold to generate these sales rose by approx. 18.0 % to approx. 2.0 gigawatt (GW) (Q1 – Q3 2008: approx. 1.7 GW).
The Photovoltaics Technology division is divided into the segments Medium Power Solutions and High Power Solutions. The Medium Power Solutions segment covers the product groups Sunny Boy and Sunny Mini Central. These product groups are deployed mainly for photovoltaics systems on residential buildings (Residential) and in the commercial field (Commercial). In the reporting period, photovoltaics systems on residential buildings and for the commercial sector represented the largest market by far. In addition, the Medium Power Solutions segment also covers the product groups Sunny Island and Sunny Backup as well as all communication products. The Sunny Island product group is used for off-grid applications, while Sunny Backup inverters are deployed normally in residential buildings. The communication products are used in all solar applications. The High Power Solutions segment includes the Sunny Central product group. The central inverters Sunny Central are deployed primarily in large solar projects (Industrial).
Of the external sales in the Photovoltaics Technology division, 89 % (Q1 – Q3 2008: 81 %) were attributable to the Medium Power Solutions segment and 11 % to the High Power Solutions segment (Q1 – Q3 2008: 19 %). Accordingly, the share of the High Power Solutions segment fell by 8 percentage points compared to the first nine months of 2008.
In the Medium Power Solutions segment, external sales in the first nine months of 2009 rose by 19 % to € 487.3 million (Q1 – Q3 2008: € 410.8 million). On account of a distinct recovery of business activity, the third quarter contributed € 269.3 million (Q3 2008: € 181.0 million). 63.9 % of gross sales were achieved in Germany, the largest photovoltaics market worldwide according to its own estimates. The most successful international markets were the Benelux countries, followed by North America, France and Australia. Strong sales in the third quarter made the inverter types Sunny Mini Central 10000TL and 11000TL as well as Sunny Boy 5000TL the most successful products in the period under review. The share of the lower-output Sunny Boy inverters in segment sales decreased in the first nine months of 2009 due to a shift in regional demand. In the first nine months of the previous year, the solar inverters Sunny Mini Central 7000HV and Sunny Mini Central 8000TL were the main sales drivers. Operating profit (EBIT) improved to € 97.1 million (Q1 – Q3 2008: € 94.5 million).
In the High Power Solutions segment, external sales in the first nine months of 2009 declined by 39 % to € 58.2 million (Q1 – Q3 2008: € 96.1 million). This sharp decline in sales is due mainly to higher financing requirements of large solar projects, the shift in the demand to Sunny Central inverters with higher output and lower sales prices per watt and the distinct drop in the Spanish photovoltaics market. In Spain, mainly large solar projects were realized in 2008. The demand for Sunny Central inverters rose significantly in the third quarter. The third quarter accounted for 64 % of segment sales of the first nine months of 2009. Germany was the top-selling market in the High Power Solutions segment, followed by Italy, Spain, France and North America. The product mix has changed as a result of the strong decline of the Spanish photovoltaics market. In the first nine months of 2009, the Sunny Central 630HE, which was launched at the beginning of 2009, was one of the most successful products, followed by Sunny Central 500HE and Sunny Central 560HE. The Sunny Central 250U inverter, which was introduced in North America in the last year, was met with positive acceptance in the market. In the first nine months of the previous year, Sunny Central 100 and Sunny Central 500HE were the main contributors to turnover.
The Electronics Manufacturing segment recorded slightly lower external sales in the first nine months of 2009 than in the previous year. This segment acts mainly as a sub-supplier for other segments, in particular the Medium Power Solutions segment. The production area was well utilized throughout the period. The share of electronic assemblies purchased from third parties was adapted to the demand. Total sales from external and internal revenues improved to € 131.9 million (Q1 – Q3 2008: € 113.4 million). Operating profit (EBIT) rose by 27.4 % to € 12.1 million (Q1 – Q3 2008: € 9.5 million) due to the favorable utilization of fixed costs. In relation to internal and external sales revenues this corresponds to an EBIT margin of 9.2 % (Q1 – Q3 2008: 8.4 %).
In the Railway Technology division, external sales in the first nine months of 2009 of € 12.1 million were up by 21.0 % compared to the figure of the previous year (Q1 – Q3 2008: € 10.0 million). Sales were generated mainly through three long-term projects for the delivery of energy supply systems for multiple-unit trains and the delivery of battery chargers in various projects. 38.8 % of sales (Q1 – Q3 2008: 52 %) was generated in Germany and the rest mainly in other European countries. Operating profit (EBIT) shrank by 7.7 % to € 1.2 million (Q1 – Q3 2008: € 1.3 million). At present, the high level of orders in hand will secure good capacity utilization of considerably more than one year.
In the first nine months of fiscal 2009, the net cash flow from operating activities fell to € 79.2 million (Q1 – Q3 2008: € 128.9 million).The decline is mainly the result of the year-on-year lower gross cash flow, the increase in the net working capital and the lower inflow of cash from a change in other net assets. The increase in the net working capital in the period under review results primarily from the increase in trade receivables, which is due to stronger sales growth in the third quarter when compared to the previous year. In the first nine months of 2009, SMA built up less inventories than in the same period of the previous year. The change in other net assets relates primarily to liabilities for guarantee extensions, for prepayments received and for employee bonus payments, for holiday and flexitime.
The net cash flow from investing activities increased slightly to € –110.8 million in the period under review (Q1 – Q3 2008: € –110.1 million). The net cash flow from investments in fixed assets and intangible assets in the first nine months of 2009 amounted to € 51.4 million, which is almost identical to the previous year's level (Q1 – Q3 2008: € –50.1 million). The investments in fixed assets related mainly to the construction and erection of the new production facility in Kassel.
The net cash flow from financing activities amounted to € –35.7 million in the first nine months of 2009 (Q1 – Q3 2008: € 93.8 million). This figure is attributable almost completely to the dividend payment of € 1.00 per share. The figure of the previous year includes primarily the inflow of funds from the capital increase in the context of the IPO.
SMA's total liquidity including time deposits with a duration of up to six month as per September 30, 2009 fell by € 7.5 million to € 253.5 million on a year-on-year basis. This means that SMA has an excellent liquidity reserve. Liquid funds are invested with an investment horizon of up to six months at various domestic banks. In this connection, SMA pursues a conservative investment policy.
Total assets amounted to € 596.4 million as at September 30, 2009 (per December 31, 2008: € 469.6 million). The net working capital increased to € 138.4 million as at September 30, 2009 (December 31, 2008: € 78.0 million) due to the strong sales growth in the third quarter and the positive outlook for the current fiscal year. In relation to the sales of the last 12 months, this equals a net working capital ratio of 19.2 % (per December 31, 2008: 11.4 %). The increase of € 60.4 million during the last nine months was due mainly to an increase in trade receivables from € 58.8 million to € 82.8 million. The increase in inventories of € 34.0 million is almost identical to the increase in trade payables (€ 32.4 million).
The investment volume in the first nine months of 2009 of € 46.8 million – without capitalizing the costs of development projects amounting to € 4.7 million – corresponds largely to the level of the previous year (Q1 – Q3: € 44.5 million). Accordingly the investment ratio rose to 8.8 % (Q1 – Q3
2008: 8.6 %). The expansion of the production capacity at the Kassel site the main contributors to the investment volume.
The research and development expenses amounted to € 37.2 million in the first nine months of fiscal 2009 (Q1 – Q3 2008: € 24.9 million). In essence, the rise by 49.4 % is attributable to the increase in the number of staff employed in the development area. SMA plans again to introduce onto the market up to six new products, which offer essential new technological benefits and significant specific price reductions, in the 2009 fiscal year. The R&D ratio increased to 6.6 % as compared to the previous year (Q1 – Q3 2008: 4.8 %).
The development team is still focusing its activities on the completion of the Sunny Tripower product family and of a new generation of Sunny Central inverters. Another emphasis of the development division is the adaptation of inverter types for large installations to the requirements of the mediumvoltage guideline adopted by the Association for the Energy and Water Industry (BDEW), which will come into force, step by step, by January 1, 2011.
In the first quarter of 2010, SMA will start the series production of Sunny Boy 3000HF, which is equipped with a high-frequency transformer. Based on the latest SMA technology, these inverters provide the highest yields for galvanically isolated equipment in the 2000 watt, 2500 watt and 3000 watt power classes. In addition, development of the design was concentrated, among other things, on the specific building requirements in the USA: Owing to its slim housing, the Sunny Boy 3000HF can be integrated to fit in post-and-beam structure walls.
A further important project was the completion of the UL Certification of the new Sunny Central 500U, after the Sunny Central 250U had been launched successfully in the US market in the last year. With the Sunny Central 500U, we have been able to serve the strongly growing US market for large solar projects since the third quarter.
The module inverter technology platform acquired in the third quarter from the Dutch company OKE Services will be developed further consistently in the forthcoming years. SMA will launch its own product family of module inverters in the market and complete its product range with this micro inverter technology.
The rising demand in the second and third quarters resulted in new employees being hired in the reporting period as well. As at September 30, 2009, the number of staff in the SMA Group amounted to 3,872, including the 1,165 temporary workers. This corresponded to an increase of 42.9 % compared to the end of last year (December 31, 2008: 2,709, of which 489 temporary workers). In the foreign sales and service branches run by the Photovoltaics Technology division, the number of employees increased to 184 on the reporting date (December 31, 2008: 140).
SMA continued to experience strong demand for SMA products after the period under review. The surprisingly high demand has resulted in longer delivery times for top-selling products. The Management Board expects that delivery times will shorten significantly in the first quarter of 2010. On the basis of the positive business performance to be expected, the Management Board adjusted its sales and earnings forecast for fiscal 2009 again on November 12, 2009. Considering the fallen prices for solar inverters, the Managing Board expects total sales of 850 to 900 million Euro (previous forecast dated October 20: 760 to 810 million Euro) and an EBIT-margin between 23.0 and 25.0 % (previous forecast dated October 20: 21.5 to 23.5 %).
In addition, the Federal German government made up of the CDU / CSU and FDP, which was elected in September 2009, agreed in its coalition agreement on a further expansion of renewable energies, in particular photovoltaics. The government plans to review the current version of the Renewable Energies Act (EEG) in respect of the amount of the feed-in tariff for photovoltaics systems jointly with the photovoltaics sector. This is intended to avoid excess or deficit funding of the sector. To date, no details regarding the extent and the time of an adjustment have become known.
No events that might have a material impact on the Company's results of operations, financial position and assets have occurred. In addition, there are no other reportable events that are of particular importance to the SMA Group.
The Group's risk and opportunities management as well as possible individual risks are described in detail in the Annual Report 2008. Essentially, the comments made there remain applicable. At the moment, no risks that could seriously jeopardize the Company's continuing existence or could significantly impair its performance are discernible.
SMA offers solar inverters for all performance classes, applications and module technologies worldwide. This position enables SMA to benefit from the development of the global photovoltaics market. According to its own estimates, SMA had a market share of about 38 % in the 2008 fiscal year (2007: 34 %). For 2009, the Company is expecting two-digit growth in the world market, measured by Gigawatt, in comparison to the previous year (5.7 GW). Against the backdrop of attractive framework conditions and the considerably lower prices for solar modules, Germany, North America, the Benelux countries, Australia, France and Italy are among the very interesting solar markets in 2009. With a view to the outstanding growth potential in North America, SMA is erecting its first production site abroad in Denver, Colorado, USA. The Denver production facility will have an annual capacity of 1 GW and will be commissioned in the first six months of 2010.
Due to the positive business performance in the third quarter 2009 and taking into account the lower prices for solar inverters, SMA's Management Board increases its sales forecast for the 2009 fiscal year to between € 850 and 900 million (previous sales forecast: € 760 to 810 million ). Accordingly the Management Board is expecting sales growth of up to approx. 32 % in relation to the previous year (2008: € 681.6 million). As a result of changes in the product mix and modified cost structures, the Management Board is expecting an EBIT margin of 23.0 % to 25.0 % (previous forecast: 21,5 % to 23,5 %) for fiscal 2009. The EBIT margin in the previous year was 24.6 %.
Niestetal, November 12, 2009
SMA Solar Technology AG The Managing Board
| July – Sept. (Q3) | Jan. – Sept. (Q1 – Q3) | ||||
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | ||
| Note | € '000 | € '000 | € '000 | € '000 | |
| Sales | 4. | 312,361 | 226,727 | 559,474 | 519,286 |
| Cost of sales | 196,463 | 140,303 | 361,316 | 320,993 | |
| Gross profit | 115,898 | 86,424 | 198,158 | 198,293 | |
| Selling expenses | 9,792 | 7,195 | 25,490 | 23,313 | |
| Research and development expenses | 5. (1) | 14,622 | 8,810 | 32,496 | 24,009 |
| General administrative expenses | 5,851 | 8,537 | 19,678 | 18,609 | |
| Other operating income | 1,231 | 2,674 | 6,643 | 4,625 | |
| Other operating expenses | 1,009 | 1,423 | 6,322 | 5,201 | |
| Operating profit (EBIT) | 85,855 | 63,133 | 120,815 | 131,786 | |
| Financial income | 1,360 | 1,562 | 5,236 | 2,555 | |
| Financial expenses | 500 | 379 | 1,277 | 978 | |
| Financial result | 5. (3) | 860 | 1,183 | 3,959 | 1,577 |
| Profit before income taxes | 86,715 | 64,316 | 124,774 | 133,363 | |
| Income tax expense | 26,702 | 18,579 | 38,806 | 39,442 | |
| Consolidated net profit | 60,013 | 45,737 | 85,968 | 93,921 | |
| Earnings per share, Basic (€) | 5. (4) | 1.73 | 1.32 | 2.48 | 2.71 |
| Earnings per share, Diluted (€) | 5. (4) | 1.73 | 1.32 | 2.48 | 2.71 |
| Number of ordinary shares (in thousands) | 34,700 | 34,700 | 34,700 | 34.700 | |
| Consolidated net profit | 60,013 | 45,737 | 85,968 | 93,921 | |
| Unrealized gains / (losses) from foreign | |||||
| currency translation | – 10 | – 104 | 101 | – 77 | |
| Overall result | 60,003 | 45,633 | 86,069 | 93.844 |
| 09/30/2009 | 12/31/2008 | ||
|---|---|---|---|
| Note | € '000 | € '000 | |
| Non-current assets | |||
| Intangible assets | 6. (5) | 12,411 | 5,538 |
| Fixed assets | 6. (6) | 127,159 | 94,149 |
| Other financial assets | 72 | 70 | |
| Deferred tax receivables | 4,894 | 2,512 | |
| 144,536 | 102,269 | ||
| Current assets | |||
| Inventories | 6. (7) | 109,311 | 75,275 |
| Trade receivables | 82,802 | 24,017 | |
| Other financial assets | 6. (8) | 83,585 | 23,559 |
| Income tax receivables | 460 | 343 | |
| Other receivables | 2,163 | 3,414 | |
| Cash and cash equivalents | 173,512 | 240,682 | |
| 451,833 | 367,290 | ||
| Total assets | 596,369 | 469,559 | |
| 09/30/2009 | 12/31/2008 | ||
|---|---|---|---|
| Note | € '000 | € '000 | |
| Shareholders' equity | |||
| Share capital | 34,700 | 34,700 | |
| Capital reserves | 119,200 | 119,200 | |
| Retained earnings | 178,226 | 126,857 | |
| 6. (9) | 332,126 | 280,757 | |
| Non-current liabilities | |||
| Other provisions | 6. (10) | 32,525 | 20,855 |
| Financial liabilities | 19,198 | 20,174 | |
| Other liabilities | 6. (11) | 25,516 | 15,033 |
| Deferred tax liabilities | 4,328 | 2,520 | |
| 81,567 | 58,582 | ||
| Current liabilities | |||
| Other provisions | 6. (10) | 21,513 | 16,967 |
| Financial liabilities | 1,321 | 1,361 | |
| Trade payables | 53,702 | 21,290 | |
| Other financial liabilities | 52,416 | 59,023 | |
| Income tax liabilities | 27,759 | 25,100 | |
| Other liabilities | 6. (11) | 25,965 | 6,479 |
| 182,676 | 130,220 | ||
| Total equity and liabilities | 596,369 | 469,559 |
| Jan. – Sept. (Q1 – Q3) | |||
|---|---|---|---|
| 2009 | 2008 | ||
| Note | € '000 | € '000 | |
| Net profit | + 85,968 | + 93,921 | |
| Income tax expense | + 38,806 | + 41,542 | |
| Financial result | – 3,959 | – 1,577 | |
| Depreciation and amortization | + 11,453 | + 6,154 | |
| Change in other provisions | + 16,218 | + 15,442 | |
| Profit (–)/Losses (+) from the disposal of assets | + 30 | – 16 | |
| Other non-cash expenses/revenue | + 355 | + 4,615 | |
| Interest received | + 4,958 | + 2,531 | |
| Interest paid | – 4 | – 20 | |
| Income tax paid | – 36,838 | – 25,508 | |
| Gross cash flow | + 116,987 | + 137,084 | |
| Increase in inventories | – 34,615 | – 40,278 | |
| Increase in trade receivables | – 59,556 | – 30,732 | |
| Increase in trade payables | + 32,412 | + 18,058 | |
| Change in other net assets/ | |||
| other non-cash transactions | + 23,990 | + 44,737 | |
| Net cash flow from operating activities | 7. (13) | + 79,218 | + 128,869 |
| Payments for investments in fixed assets | – 43,139 | – 45,365 | |
| Proceeds from the disposal of fixed assets | + 58 | + 1 | |
| Payments for investments in intangible assets | – 8,322 | – 4,695 | |
| Proceeds from the disposal / Payments for investments in securities | |||
| and other financial assets | – 59,404 | – 60,000 | |
| Net cash flow from investing activities | – 110,807 | – 110,059 | |
| Proceeds from the issuance of equity | + 0 | + 126,900 | |
| Payments in connection with the issuance of equity | + 0 | – 7,100 | |
| Change in financial liabilities | – 1,016 | – 817 | |
| Dividends paid by SMA Solar Technology AG | – 34,700 | – 25,200 | |
| Net cash flow from financing activities | 7. (13) | – 35,716 | + 93,783 |
| Net increase/decrease in cash and cash equivalents | – 67,305 | + 112,593 | |
| Change in cash due to exchange rate effects | + 135 | + 154 | |
| Cash and cash equivalents as of 01/01 | + 240,682 | + 52,847 | |
| Cash and cash equivalents as of 09/30 | 7. (13) | + 173,512 | + 165,594 |
| Share Capital |
Capital Reserves |
Retained Earnings |
Consolidated Shareholders' Equity |
|
|---|---|---|---|---|
| € '000 | € '000 | € '000 | € '000 | |
| Shareholders' equity as of 01/01/2009 | 34,700 | 119,200 | 126,857 | 280,757 |
| Consolidated net profit Q1 – Q3 2009 | 0 | 0 | 85,968 | 85,968 |
| Dividend payment of SMA Solar Technology AG | 0 | 0 | – 34,700 | – 34,700 |
| Differences from currency translation | 0 | 0 | 101 | 101 |
| Shareholders' equity as of 09/30/2009 | 34,700 | 119,200 | 178,226 | 332,126 |
| Share Capital |
Capital Reserves |
Retained Earnings |
Consolidated Shareholders' Equity |
|
|---|---|---|---|---|
| € '000 | € '000 | € '000 | € '000 | |
| Shareholders' equity as of 01/01/2008 | 4,000 | 0 | 60,437 | 64,437 |
| Consolidated net profit Q1 – Q3 2008 | 0 | 0 | 93,921 | 93,921 |
| Dividend payment of SMA Solar Technology AG | 0 | 0 | – 25,200 | – 25,200 |
| Differences from currency translation | 0 | 0 | – 77 | – 77 |
| Capital increase from corporate funds | 28,000 | 0 | – 28,000 | 0 |
| Capital increase from issuing new shares | 2,700 | 119,200 | 0 | 121,900 |
| Shareholders' equity as of 09/30/2008 | 34,700 | 119,200 | 101,081 | 254,981 |
The condensed interim consolidated financial statements of SMA Solar Technology AG as at September 30, 2009 were prepared, as were the consolidated financial statements as at December 31, 2008, in compliance with the International Financial Reporting Standards (IFRS), adopted and published by the International Accounting Standards Board (IASB), as adopted by the European Union, and whose application is mandatory. Accordingly, the interim financial statements of SMA Technology AG are prepared in line with IAS 34 Interim Financial Reporting in the 2009 fiscal year. In accordance with the regulations of IAS 34, a condensed reporting format compared with the consolidated financial statements as at December 31, 2008 was chosen. The condensed financial statements do not include all the information and disclosures required for consolidated financial statements and are therefore to be read in conjunction with the consolidated financial statements as at December 31, 2008.
The condensed interim consolidated financial statements were prepared in euro. Unless indicated otherwise, all amounts stated were rounded to full thousands of euro (€ '000) or million of euro (€ million) for the sake of clarity and clearness.
The Management Board of SMA Solar Technology AG authorized the interim consolidated financial statements for transmission to the Supervisory Board on November 12, 2009.
The registered office of the Company is at Sonnenallee 1, 34266 Niestetal. The shares of SMA Solar Technology AG are traded publicly; they are listed in the Prime Standard of the Frankfurt Stock Exchange. Since September 22, 2008, the Company's shares have been listed in the technology index TecDax.
The SMA Group produces in Germany and distributes inverters throughout the world. More detailed information on the segments is provided in note 4. Segment reporting.
The scope of consolidation as at September 30, 2009 has changed as against December 31, 2008 and now also includes the newly incorporated companies SMA Czech Republic s.r.o. (Prague), SMA Benelux SPRL (Brussels), Niestetal Services, Unipessoal Lda (Lisbon), SMA Service GmbH (Niestetal), SMA America Holdings LLC (Denver) and SMA America Production LLC (Denver). All new companies are fully consolidated. The company so far operating under the name of SMA America, Inc. in Rocklin, USA, was converted to SMA Solar Technology America LLC. The scope of consolidation as at September 30, 2008 was identical to that as at December 31, 2008.
The interim consolidated financial statements are based on the financial statements of SMA Solar Technology AG and of the subsidiaries included in consolidation, which are prepared in accordance with uniform accounting policies applicable throughout the Group.
More detailed information is provided in the notes to the consolidated financial statements as at December 31, 2008.
With the exception of the changes shown below, there were no changes to the accounting and valuation policies in the present interim consolidated financial statements as at September 30, 2009 compared with the consolidated financial statements of SMA Solar Technology AG as at December 31, 2008. A detailed description of these policies is published in the notes to the consolidated financial statements as at December 31, 2008.
The SMA Group has implemented all accounting standards that are to be applied mandatorily from the 2009 fiscal year in the preparation of the consolidated financial statements. This relates primarily to IAS 1 "Presentation of Financial Statements". The other standards to be applied initially in the fiscal year 2009 have no significant impact on the consolidated interim financial statements.
In April 2009, the IASB issued amendments to the existing IFRS, which resulted from the IASB's annual improvement project. They comprise amendments that result in accounting changes to the presentation, measurement and recognition of transactions as well as terminology or editorial amendments related to a variety of individual IFRS standards. Most of the amendments are effective for fiscal years beginning on or after January 1, 2010, with early application permitted. While approved by the IASB, the amendments have yet to be endorsed by the EU. SMA Solar Technology AG is currently evaluating the potential impact that the adoption of the amendments will have on its consolidated financial statements.
The Group's operating segments were defined in compliance with the regulations contained in IFRS 8 and match those of the consolidated financial statements as at December 31, 2008. Sales in the Photovoltaics Technology division are subject to fluctuations because of discontinuous support programs.
The segment information pursuant to IFRS 8 is made up as follows for the third quarters of 2009 and 2008:
| Photovoltaics Technology | Railway Technology | ||||||
|---|---|---|---|---|---|---|---|
| € million | Medium Power Solutions | High Power Solutions | Railway Technology | ||||
| Q3 2009 |
Q3 2008 |
Q3 2009 |
Q3 2008 |
Q3 2009 |
Q3 2008 |
||
| External sales | 269.3 | 181.0 | 37.3 | 42.3 | 5.1 | 2.5 | |
| Internal sales | 5.8 | 4.7 | 4.5 | 0.5 | 4.0 | 3.4 | |
| Total sales | 275.1 | 185.7 | 41.8 | 42.8 | 9.1 | 5.9 | |
| Depreciation and amortization | 3.0 | 1.5 | 0.5 | 0.2 | 0.1 | 0.2 | |
| Operating profit (EBIT) | 66.6 | 48.7 | 14.2 | 12.3 | 0.4 | 0.1 | |
| Sales by regions | |||||||
| Germany | 187.7 | 135.4 | 22.8 | 14.3 | 1.4 | 1.2 | |
| European Union | 56.0 | 36.8 | 10.7 | 21.5 | 2.3 | 1.0 | |
| Third-party countries | 32.3 | 16.1 | 4.0 | 7.5 | 1.4 | 0.3 | |
| Sales deductions | – 6.7 | – 7.3 | – 0.2 | – 1.0 | 0.0 | 0.0 | |
| External sales | 269.3 | 181.0 | 37.3 | 42.3 | 5.1 | 2.5 | |
| Electronics Manufacturing | |||||||
| € million | Electronics Manufacturing | Reconciliation | Continuing operations | ||||
| Q3 2009 |
Q3 2008 |
Q3 2009 |
Q3 2008 |
Q3 2009 |
Q3 2008 |
||
| External sales | 0.7 | 0.9 | 0.0 | 0.0 | 312.4 | 226.7 | |
| Internal sales | 68.1 | 46.8 | – 82.4 | – 55.4 | 0.0 | 0.0 | |
| Total sales | 68.8 | 47.7 | – 82.4 | – 55.4 | 312.4 | 226.7 | |
| Depreciation and amortization | 0.9 | 0.5 | 0.0 | 0.0 | 4.5 | 2.4 | |
| Operating profit (EBIT) | |||||||
| 6.3 | 2.7 | – 1.7 | – 0.7 | 85.8 | 63.1 | ||
| Sales by regions | |||||||
| Germany | 0.7 | 0.9 | 0.0 | 0.0 | 212.6 | 151.8 | |
| European Union | 0.0 | 0.0 | 0.0 | 0.0 | 69.0 | 59.3 | |
| Third-party countries | 0.0 | 0.0 | 0.0 | 0.0 | 37.7 | 23.9 | |
| Sales deductions External sales |
0.0 0.7 |
0.0 0.9 |
0.0 0.0 |
0.0 0.0 |
– 6.9 312.4 |
– 8.3 226.7 |
The segment information pursuant to IFRS 8 is made up as follows for the first nine months of the years 2009 and 2008:
| Photovoltaics Technology | Railway Technology | |||||
|---|---|---|---|---|---|---|
| € million | Medium Power Solutions | High Power Solutions | Railway Technology | |||
| Q1 – Q3 2009 |
Q1 – Q3 2008 |
Q1 – Q3 2009 |
Q1 – Q3 2008 |
Q1 – Q3 2009 |
Q1 – Q3 2008 |
|
| External sales | 487.3 | 410.8 | 58.2 | 96.1 | 12.1 | 10.0 |
| Internal sales | 18.9 | 12.7 | 6.3 | 1.7 | 7.5 | 7.8 |
| Total sales | 506.2 | 423.5 | 64.5 | 97.8 | 19.6 | 17.8 |
| Depreciation and amortization | 7.5 | 3.6 | 1.4 | 0.7 | 0.2 | 0.5 |
| Operating profit (EBIT) | 97.1 | 94.5 | 12.2 | 26.1 | 1.2 | 1.3 |
| Sales by regions | ||||||
| Germany | 311.5 | 283.9 | 38.2 | 23.0 | 4.7 | 5.2 |
| European Union | 116.1 | 112.6 | 15.0 | 50.8 | 5.3 | 4.0 |
| Third-party countries | 71.9 | 33.6 | 5.3 | 23.8 | 2.1 | 0.8 |
| Sales deductions | – 12.2 | – 19.3 | – 0.3 | – 1.5 | 0.0 | 0.0 |
| External sales | 487.3 | 410.8 | 58.2 | 96.1 | 12.1 | 10.0 |
| Electronics Manufacturing | ||||||
| € million | Electronics Manufacturing | Reconciliation | Continuing operations | |||
| Q1 – Q3 2009 |
Q1 – Q3 2008 |
Q1 – Q3 2009 |
Q1 – Q3 2008 |
Q1 – Q3 2009 |
Q1 – Q3 2008 |
|
| External sales | 1.9 | 2.4 | 0.0 | 0.0 | 559.5 | 519.3 |
| Internal sales | 130.0 | 111.0 | – 162.7 | – 133.2 | 0.0 | 0.0 |
| Total sales | 131.9 | 113.4 | – 162.7 | – 133.2 | 559.5 | 519.3 |
| Depreciation and amortization | 2.3 | 1.4 | 0.0 | 0.0 | 11.4 | 6.2 |
| Operating profit (EBIT) | 12.1 | 9.5 | – 1.8 | 0.4 | 120.8 | 131.8 |
| Sales by regions | ||||||
| Germany | 1.9 | 2.4 | 0.0 | 0.0 | 356.3 | 314.5 |
| European Union | 0.0 | 0.0 | 0.0 | 0.0 | 136.4 | 167.4 |
| Third-party countries | 0.0 | 0.0 | 0.0 | 0.0 | 79.3 | 58.2 |
| Sales deductions | 0.0 | 0.0 | 0.0 | 0.0 | – 12.5 | – 20.8 |
| External sales | 1.9 | 2.4 | 0.0 | 0.0 | 559.5 | 519.3 |
The reconciliation of the total segment operating profit (EBIT) pursuant to IFRS 8 to profit before income taxes produces the following figures:
| € million | Q3 2009 | Q3 2008 | Q1 – Q3 2009 | Q1 – Q3 2008 |
|---|---|---|---|---|
| Total segment earnings (EBIT) | 87.5 | 63.8 | 122.6 | 131.4 |
| Eliminations | – 1.7 | – 0.7 | – 1.8 | 0.4 |
| Consolidated operating profit (EBIT) | 85.8 | 63.1 | 120.8 | 131.8 |
| Financial result | 0.9 | 1.2 | 4.0 | 1.6 |
| Profit before income taxes | 86.7 | 64.3 | 124.8 | 133.4 |
The reconciliation includes circumstances that by definition are not part of the segments. In addition, unallocated parts of Group head office, e.g., from circumstances that are accounted for centrally, are included therein. Business relations between the segments are eliminated in the reconciliation.
Segment assets as at September 30, 2009 increased as against the reporting date of the last consolidated financial statements (December 31, 2008) by € 74.6 million in the Medium Power Solutions segment, by € 26.5 million in the High Power Solutions segment and by € 16.1 million in the Electronics Manufacturing segment. In the reconciliations as at September 30, 2009, segment assets increased by € 11.6 million.
| Q1 – Q3 2009 | Q1 – Q3 2008 | |
|---|---|---|
| € '000 | € '000 | |
| Wages and salaries | 111,899 | 94,333 |
| Expenses for temporary employees | 20,783 | 14,628 |
| Social security contributions and welfare payments | 12,171 | 8,296 |
| 144,853 | 117,257 | |
| The average number of employees amounted to: | ||
| Q1 – Q3 2009 | Q1 – Q3 2008 | |
| Research and Development | 466 | 306 |
| Production and service | 1,154 | 925 |
| Sales and administration | 579 | 391 |
| 2,199 | 1,622 | |
| Trainees and interns | 261 | 172 |
| Temporary employees | 714 3,174 |
633 2,427 |
| (3) Financial result | ||
| Q1 – Q3 2009 | Q1 – Q3 2008 | |
| € '000 | € '000 | |
| Interest income | 4,993 | 2,530 |
| Other financial income | 243 | 25 |
| Financial income | 5,236 | 2,555 |
| Interest expenses | 4 | 20 |
| Other financial expenses | 5 | 7 |
| Interest share from valuation | 1,268 | 951 |
| Financial expenses | 1,277 | 978 |
| Financial result | 3,959 | 1,577 |
Earnings per share are calculated by dividing the consolidated earnings attributable to the shareholders by the weighted average of ordinary shares in circulation during the period.
The consolidated earnings attributable to the shareholders are the consolidated net income after tax. Since, at the reporting date, the Company does not hold any of its own shares and neither are there any other special cases, the number of ordinary shares issued equates the number of shares in circulation.
The calculation of earnings in relation to the weighted average number of shares in accordance with IAS 33 produces earnings of € 1.73 per share for the period from July 1 to September 30, 2009 and earnings of € 2.48 per share for the period from January 1 to September 30, 2009, each on the basis of 34.7 million shares. To ensure comparability, the earnings per share in the consolidated income statement for the third quarter of 2008 were calculated on the basis of the number of shares in circulation in the third quarter of 2009, which amounted to 34.7 million. In relation to the weighted average number of shares in accordance with IAS 33, the earnings amount to € 1.32 per share for the period from July 1 to September 30, 2008. In the period from January 1 to September 30, 2008, the earnings per share amounted to € 2.85 per share on the basis of 32.9 million shares.
There are no options or conversion rights at the reporting date. Therefore, there are no diluting effects so that the diluted and basic earnings per share are the same.
| 09/30/2009 | 12/31/2008 | |
|---|---|---|
| € '000 | € '000 | |
| Software | 4,896 | 3,570 |
| Capitalized development projects | 6,369 | 1,711 |
| Prepayments | 1,146 | 257 |
| 12,411 | 5,538 |
| 09/30/2009 | 12/31/2008 | |
|---|---|---|
| € '000 | € '000 | |
| Land and buildings including buildings on third-party | ||
| property | 51,181 | 33,727 |
| Technical equipment and machinery | 31,104 | 4,589 |
| Other equipment, fixtures and furniture | 33,878 | 20,635 |
| Prepayments | 10,996 | 35,198 |
| 127,159 | 94,149 |
Prepayments made in the period from January 1 to September 30, 2009 include mainly payments for the construction of office buildings and of the Solar Academy.
The increase in property, plant and equipment by € 33.0 million in total should be viewed against the background of the expansion of the Group's business.
As at September 30, 2009, the Company had commitments to acquire property, plant and equipment amounting to € 11.0 million. This figure includes commitments of € 5.5 million for the construction of an office building in Kassel and € 1.3 million for the construction of the Solar Academy in Niestetal. The other obligations relate predominantly to production tools. There is also the customary amount of business commitments.
| 09/30/2009 | 12/31/2008 | |
|---|---|---|
| € '000 | € '000 | |
| Raw materials, consumables and supplies | 56,769 | 42,180 |
| Unfinished goods, work in progress | 15,522 | 7,832 |
| Finished goods and goods for resale | 34,983 | 23,879 |
| Prepayments | 2,037 | 1,384 |
| 109,311 | 75,275 |
The impairment on inventories, included in expenses as manufacturing costs, was € 0.6 million as at September 30, 2009.
Other financial assets as at September 30, 2009 include mainly time deposits and accrued interest.
(9) Equity
The change in equity including effects not affecting profit or loss is presented in the statement of changes in equity.
On June 10, 2009, the general meeting of SMA Solar Technology AG passed a resolution to distribute a dividend of € 1.00 per qualifying bearer share for the 2008 fiscal year.
| 09/30/2009 | 12/31/2008 | |
|---|---|---|
| € '000 | € '000 | |
| Production area | 51,368 | 32,652 |
| Staff area | 731 | 564 |
| Other | 1,939 | 4,606 |
| 54,038 | 37,822 |
Provisions account for all discernible risks and contingent liabilities at the balance sheet date. Provisions in the production area include, in particular, warranty provisions for products sold. Provisions in the staff area relate primarily to long-service anniversaries.
| 09/30/2009 | 12/31/2008 | |
|---|---|---|
| € '000 | € '000 | |
| Deferred income for extended guarantees | 25,204 | 14,497 |
| Liabilities from prepayments received | 18,622 | 3,800 |
| Liabilities due to tax authorities | 6,653 | 1,719 |
| Liabilities from subsidies received | 930 | 1,155 |
| Other | 72 | 341 |
| 51,481 | 21,512 |
As at September 30, 2009, the balance sheet included three forward transactions intended to hedge the exchange rate risks of expected future revenues generated with customers in the USA. The derivatives are still classified as held for trading. They are not part of a hedging relationship as defined by IAS 39.
The liquid funds shown in the cash flow statement correspond to the balance sheet item "Cash and cash equivalents". In the first nine months of fiscal 2009, the net cash flow from operating activities fell to € 79.2 million (Q1 – Q3 2008: € 128.9 million). The decline is mainly the result of the year-on-year lower gross cash flow, the increase in the net working capital and the lower inflow of cash from a change in other net assets. The increase in the net working capital in the period under review results primarily from the increase in trade receivables, which is due to stronger sales growth in the third quarter as compared to the previous year. In the first nine months of 2009, SMA built up less inventories than in the same period of the previous year. The changes in other net assets relate primarily to liabilities for guarantee extensions, for prepayments received and for employee bonus payments, for holiday and flexitime.
The net cash flow from investing activities increased slightly to € –110.8 million in the period under review, following € –110.1 million in the previous year. The outflow of funds due to investments in fixed assets and intangible assets amounted to € 51.4 million in the first nine months of 2009 (Q1 – Q3 2008: € –50.1 million). In accordance with the regulations of IAS 7.17 time deposits with a duration of more than three months are disclosed in the cashflow from investing activities. The values of the period of the previous year were adjusted to ensure better comparability.
The net cash flow from financing activities amounted to € –35.7 million in the first nine months of 2009 (Q1 – Q3 2008: € 93.8 million) and was influenced by the dividend distribution of € 1.00 per share. The figure of the previous year includes primarily the inflow of funds from the capital increase in the context of the IPO.
Cash and cash equivalents of € 173.5 million (Q1 – Q3 2008: € 165.6 million) included cash in hand, bank balances, short-term deposits with an original term to maturity of less than three months as well as any credits on current accounts used, if any.
There were no significant events on or after the reporting date other than those presented in or recognizable from the statements in the consolidated management report and the notes.
There were no significant changes in respect of related parties as against December 31, 2008, except for the changes in the Management Board. The scope of transactions with SMA Immo GmbH and team-time GmbH in the first nine month of 2009 was identical to the previous extent.
Niestetal, November 12, 2009
SMA Solar Technology AG The Management Board
| Günther Cramer Peter Drews Roland Grebe Pierre-Pascal Urbon Marko Werner |
|
|---|---|
| -------------------------------------------------------------------------------------- | -- |
(Translation – the German text is authoritative)
To SMA Solar Technology AG, Niestetal
We have reviewed the condensed consolidated interim financial statements – comprising the condensed balance sheet, condensed income statement, condensed cash flow statement, condensed statement of changes in equity and selected explanatory notes – together with the group interim management report of SMA Solar Technology AG, Niestetal, for the period from January 1 to September 30, 2009, which are components of the quarterly financial report pursuant to section 37x para. 3 of the German Securities Trading Act (WpHG). The preparation of the condensed consolidated interim financial statements in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU and of the interim group management report in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports is the responsibility of the Company's Management Board. Our responsibility is to issue a review report on the condensed consolidated interim financial statements and on the interim group management report based on our review.
We conducted our review of the condensed consolidated interim financial statements and of the interim management report for the Group in accordance with German generally accepted standards for the review of financial statements promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer – IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with moderate assurance, that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU and that the interim management report for the Group has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports. A review is limited primarily to inquiries of company personnel and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot express an audit opinion.
Based on our review, no matters have come to our attention that cause us to presume that the condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with the IFRSs applicable to interim financial reporting as adopted by the EU nor that the interim management report for the Group has not been prepared, in all material respects, in accordance with the provisions of the German Securities Trading Act applicable to interim group management reports.
Hannover, November 12, 2009
Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft
(Scharpenberg) (Schwibinger) Wirtschaftsprüfer Wirtschaftsprüfer German Public Auditor German Public Auditor
| November 19 / 20, 2009 | 10. Forum Solarpraxis, Berlin Analyst One-on-One-Meetings |
|---|---|
| February 24 / 25, 2010 | 6th LBBW Renewables Conference, Zurich |
| March 31, 2010 | Publication of Annual Report SMA Group 2009 and Individual Financial Statement SMA AG 2009 Analyst Conference Call: 9:00 a.m. (CET) Press Conference on Annual Results, Frankfurt |
| April 21, 2010 | Capital Markets Day, SMA / Niestetal |
| May 14, 2010 | Publication of Quarterly Financial Report January – March 2010 Analyst Conference Call: 9:00 a.m. (CET) |
| May 27, 2010 | Annual General Meeting 2010, Kongress Palais Kassel |
| August 13, 2010 | Publication of Half-yearly Financial Report January – June 2010 Analyst Conference Call: 9:00 a.m. (CET) |
| November 12, 2010 | Publication of Quarterly Financial Report January – September 2010 Analyst Conference Call: 9:00 a.m. (CET) |
SMA Solar Technology AG Sonnenallee 1 Tel.: +49 561 9522 0 34266 Niestetal Germany www.SMA.de
Investor Relations Anna Raudszus Tel.: +49 561 9522 2222 Fax: +49 561 9522 2223 E-Mail: [email protected]
Public Relations
Volker Wasgindt Tel.: +49 561 9522 1121 Fax: +49 561 9522 1103 E-Mail: [email protected]
Publisher SMA Solar Technology AG
Publication date November 13, 2009
This Interim Report was published in German and English on November 13, 2009. Both versions are available as downloads on our website:
www.SMA.de/IR/Finanzberichte www.SMA.de/IR/FinancialReports
The German version of the Interim Report is authoritative. Text and illustrations conform to technical standards on printing. Subject to technical modifications. No liability for typographical errors. Printed on chlorine-free paper.
All trade marks are acknowledged, even if they are not separately identified. An absence of identification does not mean that goods or a mark are free. Reproduction, even of extracts, only with written approval by the publisher.
© Copyright 2009, SMA Solar Technology AG All rights reserved
This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as "expects," "looks forward to," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "project" or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond SMA's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of SMA to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments, the legal and regulatory framework, changes in currency exchange rates and interest rates. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. SMA does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
SMA Solar Technology AG Sonnenallee 1 34266 Niestetal Germany Tel.: +49 561 9522 0 Fax: +49 561 9522 100 E-Mail: [email protected] www.SMA.de
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