SMA Solar Technology AG

Earnings Release • May 13, 2015

News Details

Corporate | 13 May 2015 07:00

SMA Solar Technology AG: SMA Solar Technology AG Posts Significant Sales Growth and Improves Operating Earnings in First Quarter of 2015

SMA Solar Technology AG / Key word(s): Quarter Results

2015-05-13 / 07:00

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SMA Solar Technology AG – Corporate News

SMA Solar Technology AG Posts Significant Sales Growth and Improves Operating Earnings

in First Quarter of 2015

Overview of Q1 2015:

– Sales increase year-on-year to EUR226.3 million (Q1 2014: EUR176.3 million)

– International share rises significantly to 88.0% (Q1 2014: 71.1%)

– Operating earnings (EBIT) improve considerably to EUR-5.4 million (Q1 2014: EUR-22.4 million)

– Financial stability thanks to high amount of net cash of EUR223.7 million (December 31, 2014:

EUR225.4 million) and a high equity ratio of 46.6% (December 31, 2014: 46.8%)

– Most extensive staff reduction in the company’s history already largely completed without

involuntary layoffs

– Managing Board confirms sales and earnings guidance for fiscal year 2015 and forecasts sales of EUR400 million to EUR450 million and operating earnings (EBIT) of EUR-15 million to EUR-25 million for the

first six months of 2015

Niestetal, May 13, 2015 – SMA Solar Technology AG (SMA/FWB: S92) posted a good start to fiscal year 2015 and achieved the forecast sales target in the first quarter. Compared to the same quarter of the previous year, the SMA Group’s sales from January to March 2015 climbed by 28% to EUR226.3 million (Q1 2014: EUR176.3 million). The main sales driver was the segment of large-scale PV power plants. The international share of sales rose significantly to 88.0% (Q1 2014: 71.1%). This underscores SMA’s outstanding international position. No other competitor has a comparable international infrastructure or comparable product and service portfolio. The SMA Group’s most important foreign markets in the first three months of the year were North America, Japan, Great Britain and Australia. SMA sold PV inverters with a total output of 1.7 GW in the reporting period (Q1 2014: 1.0 GW).

As a result of increased sales volumes, reduced fixed costs and positive exchange rate effects, EBITDA improved considerably to EUR13.4 million (Q1 2014: EUR-2.5 million). At EUR-5.4 million (EBIT margin: -2.4%), EBIT was at the upper end of the Managing Board’s earnings forecast (forecast: EUR-5.0 million to EUR-10.0 million). In the same period of the previous year, SMA had generated EBIT of EUR-22.4 million (EBIT margin: -12.7%). Consolidated earnings amounted to EUR-7.9 million (Q1 2014: EUR-16.7 million).

From January to March 2015, the SMA Group generated significant positive gross cash flow of EUR16.1 million. In the same period of the previous year, this figure was EUR-9.4 million. Net cash remained at the same high level as at the end of the previous year at EUR223.7 million (December 31, 2014: EUR225.4 million). With an equity ratio of 46.6% (December 31, 2014: 46.8%), SMA remains financially sound and can implement the strategy from its own resources.

“We are satisfied with the financial performance in the first quarter of 2015. With the sales generated and the order backlog at the end of the first quarter, we have already achieved more than 60% of our sales target for the year as a whole. The earnings situation developed better than planned, partly due to the reduction of fixed costs already initiated and to exchange rate effects. In addition, we maintained our high net cash and implemented the measures to transform SMA as planned in the first quarter of 2015. Returning to sustainable profitability is not a sprint but a marathon for us – which is why we will also continue systematically implementing the strategy presented at the start of the year,” explains SMA CEO Pierre-Pascal Urbon.

The SMA Managing Board is confirming the sales and earnings forecast for the current fiscal year, which predicts sales of EUR730 million to EUR770 million. Given that the savings from the transformation measures currently being implemented will only be recognized in profit or loss from mid-2015 at the earliest, the Managing Board is forecasting negative operating earnings (EBIT) of EUR-30 million to EUR-60 million for the current year. Considering likely depreciation and amortization of approximately EUR70 million, the Managing Board expects positive earnings (EBITDA) in 2015. The SMA Managing Board expects to return to positive operating earnings (EBIT) in 2016. For the first half year 2015, the SMA Managing Board is expecting sales of EUR400 million to EUR450 million and operating earnings (EBIT) of

EUR-15 million to EUR-25 million.

You can find the quarterly financial report for January to March 2015 at www.SMA.de/IR/FinancialReports.

About SMA

The SMA Group with sales of more than EUR800 million in 2014 is the global market leader for solar inverters, a key component of all PV plants and offers innovative key technologies for future power supply structures. It is headquartered in Niestetal, near Kassel, Germany, and is represented in 21 countries. The Group employs more than 5,000 people worldwide. SMA’s broad product portfolio includes a compatible inverter for every type of module on the market and for all PV system sizes. The repeatedly awarded product range includes system technologies for grid-connected photovoltaic systems as well as off-grid and hybrid systems. The technology is protected by more than 550 patents. The range of services is supplemented by comprehensive services and operational management of large-scale PV power plants. Since 2008, the Group’s parent company, SMA Solar Technology AG, has been listed on the Prime Standard of the Frankfurt Stock Exchange (S92) and also in the TecDAX index.

SMA Solar Technology AG

Sonnenallee 1

34266 Niestetal

Germany

Head of Corporate Communications:

Anja Jasper

Tel.: +49 561 9522-2805

Presse@SMA.de

Press Contact:

Susanne Henkel

Manager Corporate Press

Tel.: +49 561 9522-1124

Fax +49 561 9522-421400

Presse@SMA.de

Investor Relations Contact:

Tel. +49 561 9522-2222

Fax +49 561 9522-2223

IR@SMA.de

Disclaimer:

This corporate news serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell any securities of SMA Solar Technology AG (the “Company”) or any present or future subsidiary of the Company (together with the Company, the “SMA Group”) nor should it form the basis of, or be relied upon in connection with, any contract to purchase or subscribe for any securities in the Company or any member of the SMA Group or commitment whatsoever. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

This corporate news can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.

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Language:	English
Company:	SMA Solar Technology AG
	Sonnenallee 1
	34266 Niestetal
	Germany
Phone:	+49 (0)561 / 9522 – 0
Fax:	+49 (0)561 / 9522 – 100
E-mail:	info@sma.de
Internet:	http://www.sma.de
ISIN:	DE000A0DJ6J9
WKN:	A0DJ6J
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart

End of News	DGAP News-Service

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