DGAP-News: Effects of the Market Slump in China Negatively Impact Sales and Results of SMA Solar Technology AG in the First Nine Months of 2018

DGAP-News: SMA Solar Technology AG / Key word(s): 9-month figures
Effects of the Market Slump in China Negatively Impact Sales and Results of
SMA Solar Technology AG in the First Nine Months of 2018

08.11.2018 / 07:00
The issuer is solely responsible for the content of this announcement.


SMA Solar Technology AG-Corporate News

Effects of the Market Slump in China Negatively Impact Sales and Results of
SMA Solar Technology AG in the First Nine Months of 2018

Overview January to September 2018:

- 6.2 GW inverter output sold (Q1-Q3 2017: 5.9 GW)

- Sales at EUR575.1 million (Q1-Q3 2017: EUR592.5 million) and earnings
before interest, taxes, depreciation and amortization (EBITDA) at EUR50.5
million (Q1-Q3 2017: EUR55.3 million) slightly down on the previous year's

- Financial stability thanks to solid equity ratio of 53.3% (December 31,
2017: 50.3%) and high net cash of EUR373.2 million (December 31, 2017:
EUR449.7 million)

- Managing Board confirms its sales and earnings guidance for the current
fiscal year adjusted on September 27, 2018

Niestetal, November 8, 2018 - From January to September 2018, SMA Solar
Technology AG (SMA/FWB: S92) sold PV inverters with a total output of around
6.2 GW (Q1-Q3 2017: 5.9 GW). Despite the increase in sales volume, sales
decreased by 2.9% compared with the same period of the previous year to
EUR575.1 million (Q1-Q3 2017: EUR592.5 million). From January to September
2018, EBITDA also fell slightly to EUR50.5 million (EBITDA margin: 8.8%;
Q1-Q3 2017: EUR55.3 million; 9.3%). EBITDA in the reporting period and in
the same period of 2017 was influenced by positive one-time effects. The
gross margin was 23.1% (Q1-Q3 2017: 21.1%). The decline in sales and results
is due in particular to increased price pressure in all markets and regions
as a consequence of the market slump in China and the related shift of major
PV projects to the coming year.

Consolidated net result amounted to EUR8.5 million from January to September
2018 (Q1-Q3 2017: EUR25.0 million). Earnings per share thus amounted to
EUR0.24 (Q1-Q3 2017: EUR0.72). With net cash of EUR373.2 million (December
31, 2017: EUR449.7 million) and an equity ratio of 53.3% (December 31, 2017:
50.3%), SMA continues to have an extremely solid balance-sheet structure. In
addition, the company has a long-term credit line of EUR100 million from
domestic banks.

\"For 2018, we expect a market slump of 26% in China, the world's largest
photovoltaic market,\" said SMA Chief Executive Officer Dr. Jürgen Reinert.
\"The PV projects already planned before the unexpected and significant
curtailment of the PV expansion targets by the Chinese government have since
been implemented. Thus, Chinese manufacturers of modules and inverters are
now increasingly pushing into international markets and creating massive
price pressure. To benefit from even lower prices in the coming months,
project developers and investors are increasingly postponing the
construction of large PV projects until next year. Against this background,
orders received at SMA lagged significantly behind expectations in recent
months. The SMA Managing Board has already reacted to this development. We
will adjust our structures to react even more flexibly to the new conditions
and to increase SMA's profitability quickly and sustainably. By the end of
this year, the restructuring measures will be agreed upon and adopted with
the employee representatives. In addition, we will introduce more new
developments into the markets along with our existing cost-optimized
products to counter the increasing price pressure in the component business.
It is our long-term goal to tap into the higher-margin system and service
business on the basis of our comprehensive experience and competence in
energy management and the integration of battery storage.\"

The SMA Managing Board confirms its sales and earnings guidance for fiscal
year 2018 adjusted on September 27, 2018. With sales of between EUR800
million and EUR850 million (previously: EUR900 million and EUR1,000
million), the guidance anticipates a break-even or slightly negative EBITDA
after one-time items from restructuring (previously: between EUR90 million
and EUR110 million). For the first time, EBITDA includes expenses of more
than EUR10 million for setting up the digital business. The Managing Board
estimates that depreciation and amortization will amount to approximately
EUR50 million.

The quarterly statement for January to September 2018 can be found at

About SMA
The SMA Group with sales of around EUR900 million in 2017 is a global leader
for solar inverters, a key component of all PV plants. SMA offers a wide
range of products and solutions that allow for high energy yields for
residential and commercial PV systems and large-scale PV power plants. To
increase PV self-consumption efficiently, SMA system technology can easily
be combined with different battery technologies. Intelligent energy
management and digital energy solutions, comprehensive services and
operational management of PV power plants round off SMA's range. The company
is headquartered in Niestetal, near Kassel, Germany, is represented in 19
countries and has more than 3,000 employees worldwide, including 500 working
in Development. SMA's multi-award-winning technology is protected by more
than 1,200 patents and utility models. 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 is listed in the SDAX 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

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.


08.11.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart, Tradegate Exchange

End of News DGAP News Service

742785 08.11.2018

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SMA Solar Technology AG

Investor Relations
Sonnenallee 1
34266 Niestetal

Fax +49 561 9522-1133