SMA Solar Technology AG's Financial Result from January to September 2014: Significant Sales Increase in Third Quarter Cannot Compensate for Low Level of Previous Months

DGAP-News: SMA Solar Technology AG / Key word(s): Quarter Results
SMA Solar Technology AG: SMA Solar Technology AG's Financial Result
from January to September 2014: Significant Sales Increase in Third
Quarter Cannot Compensate for Low Level of Previous Months

06.11.2014 / 07:00


SMA Solar Technology AG - Corporate News

SMA Solar Technology AG's Financial Result from January to September 2014:
Significant Sales Increase in Third Quarter Cannot Compensate for Low Level
of Previous Months

Overview January to September 2014:
- 3.3 gigawatts of inverter output sold (Q1-Q3 2013: 4.0 GW)

- EUR549.3 million in sales (Q1-Q3 2013: EUR709.3 million)

- International share increased further to 72.1% (Q1-Q3 2013: 69.3%)

- Earnings before interest and taxes (EBIT) of EUR-72.7 million (Q1-Q3
2013: EUR-30.1 million)

- Net cash of EUR224.8 million (December 31, 2013: EUR308.1 million) and
equity ratio of 54.7%
(December 31, 2013: 57.5%)

- Managing Board confirms sales and earnings forecast for the current
fiscal year as adjusted
on July 30, 2014, and expects greater demand
in the fourth quarter of 2014

Niestetal, November 6, 2014 - In the third quarter of 2014, SMA Solar
Technology AG (SMA/FWB: S92) saw a considerable increase in sales compared
to the two previous quarters. With 1.3 gigawatts of inverter output sold,
the Company was nearly at the level of the good third quarter of 2013. From
January to September 2014 as a whole, however, SMA could not reach the
sales volume of the same period of the previous year due to the weak first
half of the year. In the reporting period, SMA sold PV inverters with an
output of 3.3 gigawatts (Q1-Q3 2013: 4.0 GW) and generated sales of
EUR549.3 million (Q1-Q3 2013: EUR709.3 million).

The decline in sales in the reporting period is primarily attributable to
project delays in important foreign markets and a sharp reduction in demand
in Europe as a result of a significant deterioration of subsidy conditions.
This affected Germany, Spain, Italy and Greece in particular. Demand in
Thailand also decreased as a result of subsidy cuts and political unrest.
The decline was not completely offset by stronger demand in North and South

In the first nine months of the year, the international share in sales rose
to 72.1% (Q1-Q3 2013: 69.3%). The most important foreign markets for the
company included North America, Australia, Japan and Great Britain.

Earnings before interest, taxes, depreciation and amortization (EBITDA)
were positive for the first time this year in the third quarter at EUR8.8
million (Q3 2013: EUR12.7 million). The improvement in earnings is
attributable to the measures introduced to reduce material and operating
costs. The staff reduction that has already been completed was also
reflected in earnings. Due to the weak order situation and the high price
pressure in the first half of the year, however, SMA posted negative EBITDA
of EUR-8.2 million in the reporting period (Q1-Q3 2013: EUR26.9 million).
In the reporting period, EBIT fell to EUR-72.7 million (Q1-Q3 2013:
EUR-30.1 million). This corresponds to an EBIT margin of -13.2%
(Q1-Q3 2013: -4.2%). The consolidated earnings for the period amounted to
EUR-54.1 million (Q1-Q3 2013:
EUR-22.0 million).

\"The increase in demand in the third quarter was not as sharp as expected.
First, projects were postponed until the fourth quarter of 2014 and next
fiscal year. Second, commercial business in Europe deteriorated again
compared to the first half of the year. For the fourth quarter of 2014, we
expect a better sales situation, which we can already discern in SMA's high
order backlog. Overall, the market for PV inverters will remain volatile
and dominated by high price pressure. Our strategy is aimed at returning
SMA to profitability in this market environment. With an equity ratio of
almost 55% and net cash of around EUR225 million, SMA will be able to
implement the required measures with its own resources. The acquisition of
Phoenix Solar's European service portfolio, which was concluded last
Friday, is an important component of this strategy,\" explains SMA CEO
Pierre-Pascal Urbon.

The SMA Managing Board confirms its sales and earnings forecast for fiscal
year 2014 as adjusted on July 30, 2014. It predicts sales of EUR850
million to EUR950 million for the SMA Group. In the best-case scenario, the
Managing Board also expects to break even in terms of operating earnings.
At the lower end of the sales forecast, the SMA Managing Board anticipates
a loss of approximately EUR45 million. To achieve the lower end of the
sales forecast, the contracts expected to be concluded in the project
business in the fourth quarter would have to be turned around in the
current fiscal year. The SMA Managing Board also expects commercial
business to pick up as usual toward the end of the year. The earnings
forecast does not take into account any non-recurring expenses from the
staff reduction announced on July 30, 2014.

The financial report for January to September 2014 is available online at

About SMA
The SMA Group generated sales of more than EUR930 million in 2013 and is
the global market leader for solar inverters, a key component of all PV
plants. SMA 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 plant sizes. The product
range includes both inverters for grid-connected photovoltaic plants as
well as off-grid and hybrid system technology. The product portfolio is
supplemented by comprehensive services and operational management of
utility-scale PV 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

Head of Corporate Communications:
Anja Jasper
Tel.: +49 561 9522-2805

Press contact:
Susanne Henkel
Manager Corporate Press
Tel.: +49 561 9522-1124
Fax +49 561 9522-421400

Investor Relations contact:
Julia Rother
Manager Investor Relations
Tel. +49 561 9522-2222
Fax +49 561 9522-2223

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

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
Phone: +49 (0)561 / 9522 - 0
Fax: +49 (0)561 / 9522 - 100
E-mail: info@sma.de
Internet: www.sma.de
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart

End of News DGAP News-Service
295355 06.11.2014

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SMA Solar Technology AG

Investor Relations
Sonnenallee 1
34266 Niestetal