SMA Solar Technology AG significantly improves sales and earnings in 2019 – positive business development in first quarter of 2020

• Inverter output sold exceeds 10 GW for the first time at 11.4 GW (2018: 8.5 GW)
• Sales increase by around 20% year on year to €915 million (2018: €761 million)
• Earnings before interest, taxes, depreciation and amortization (EBITDA) positive at €34 million (2018: –€69 million) 
• Equity ratio still high at 38% (December 31, 2018: 43%) and high net cash of
  €303 million (December 31, 2018: €306 million) 
• Managing Board anticipates sales of between €275 million and €285 million as well as EBITDA of between €12 million and €15 million in first quarter of 2020 and confirms sales and earnings guidance for the year as a whole

In fiscal year 2019, SMA Solar Technology AG (SMA/FWB: S92) sold inverters with a cumulative output of around 11.4 GW. Inverter output sold was thus approximately 35% above the previous year’s level (2018: 8.5 GW). The SMA Group’s sales increased by around 20% to €915.1 million (2018: €760.9 million). This growth is attributable, in particular, to the very good business performance in the Home Solutions and Large Scale & Project Solutions segments. Here SMA was able to regain market share and generate more sales than in the previous year, especially in the target markets Germany and the USA, but also in new markets. EBITDA improved significantly to €34.2 million (EBITDA margin: 3.7%; 2018:
–€69.1 million, –9.1%).

Net income came to –€8.6 million (2018: –€175.5 million). Earnings per share thus amounted to –€0.25 (2018: –€5.06). Net cash remained virtually unchanged at €303.0 million (December 31, 2018: €305.5 million) and thus continued to be at a high level. With an equity ratio of 37.6% (December 31, 2018: 42.9%) at the end of 2019, SMA has a robust balance sheet structure. In addition, the company has a credit line of €100 million from domestic banks.

“Thanks to successfully implemented restructuring and cost reduction measures, an increased customer focus and targeted sales activities, SMA has significantly improved its volume, sales and earnings in the past year,” explained Chief Executive Officer Jürgen Reinert. “We have reached key milestones in both the core business and future business fields. These include the largest order in our company’s history for the supply of 595 medium-voltage power stations with a cumulated nominal output of 2.2 GW to a major U.S. utility, the expansion of our market leadership in storage systems and the growth of our managed portfolio in the operations and maintenance business for large-scale PV power plants by around 30%.”

Despite the current coronavirus crisis, the SMA Managing Board is confirming its sales and earnings guidance for the 2020 fiscal year published on February 7, 2020. It predicts a sales increase to between €1.0 billion and €1.1 billion. SMA is well positioned to gain market shares even in the current circumstances. In addition, the Managing Board is implementing further cost reduction measures. In this context, the SMA Managing Board is still expecting an increase in EBITDA of between €50 million and €80 million. “So far, the coronavirus has had only a minimal negative impact on SMA’s business development,” said Jürgen Reinert. “Since the beginning of the year, order intake and sales have continued to develop positively and we have minimized supply shortages through active management. SMA has focused on prevention at an early stage, implementing appropriate measures such as travel bans, mobile working where possible and adjustments to manufacturing processes. We are thereby guaranteeing business as usual as far as possible, while protecting the health of our employees at the same time. We will of course have to closely monitor the ongoing developments in relation to the coronavirus and respond quickly and flexibly at all times. However, we consider SMA well equipped to respond appropriately to all possible developments.”

The SMA Annual Report 2019 is available online at www.SMA.de/IR/FinancialReports.

Disclaimer:

This press release 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 press release 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.