2019-03-28

DGAP-News: SMA Solar Technology AG Records High Loss in 2018 as Expected - Business Performance and Cost Reduction Program Develop as Planned in First Quarter of 2019

DGAP-News: SMA Solar Technology AG / Key word(s): Annual Results
SMA Solar Technology AG Records High Loss in 2018 as Expected - Business
Performance and Cost Reduction Program Develop as Planned in First Quarter
of 2019

28.03.2019 / 07:00
The issuer is solely responsible for the content of this announcement.

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SMA Solar Technology AG - Corporate News

SMA Solar Technology AG Records High Loss in 2018 as Expected - Business
Performance and Cost Reduction Program Develop as Planned in First Quarter
of 2019

Overview of fiscal year 2018:

- Inverter output sold at same level as previous year with around 8.5 GW
(2017: 8.5 GW)

- Sales of EUR760.9 million influenced by increased price pressure due to
slump on Chinese market
(2017: EUR891.0 million)

- Earnings before interest, taxes, depreciation and amortization (EBITDA) of
EUR-69.1 million significantly impacted by one-time items (2017: EUR97.3
million)

- Equity ratio still high at 42.9% (December 31, 2017: 50.3%) and high net
cash of EUR305.5 million (December 31, 2017: EUR449.7 million)

- Managing Board anticipates sales of EUR160 million to EUR170 million and
EBITDA between EUR-5 million and EUR0 million in first quarter of 2019 and
confirms sales and earnings guidance for the year as a whole


Niestetal, March 28, 2019 - In fiscal year 2018, SMA Solar Technology AG
(SMA/FWB: S92) sold inverters with an accumulated output of around 8.5 GW.
Inverter output sold was thus on a par with the previous year (2017: 8.5
GW). The SMA Group's sales fell to EUR760.9 million (2017: EUR891.0
million), primarily due to the abrupt decline in the PV market in China, as
a result of which Chinese providers increasingly advanced into international
markets and caused enormous price pressure there. EBITDA amounted to
EUR-69.1 million (EBITDA margin: -9.1%; 2017: EUR97.3 million, 10.9%) and
was significantly impacted by one-time items.

Net income came to EUR-175.5 million (2017: EUR30.1 million). Earnings per
share thus amounted to EUR-5.06 (2017: EUR0.87). Net cash remained at a high
level at EUR305.5 million (December 31, 2017: EUR449.7 million). With an
equity ratio of 42.9% (December 31, 2017: 50.3%) at the end of 2018, SMA has
a solid balance sheet structure. In addition, the company has a credit line
of EUR100 million from domestic banks.

\"2018 was a challenging year for SMA,\" said SMA Chief Executive Officer
Jürgen Reinert. \"Having started the fiscal year with a high order backlog,
the continuing shortage of electronic components meant that in the first
half of the year we were only able to supply our customers to a limited
extent, particularly in the commercial PV systems segment. At the end of
May, the Chinese government drastically reduced its PV expansion targets and
solar power subsidies with immediate effect. As a result, Chinese providers
increasingly advanced into international markets and caused enormous price
pressure in all segments. In the second half of the year, project developers
and investors postponed the implementation of photovoltaic projects until
the following year in anticipation of a further decline in prices. In
addition, the storage technology growth segment was affected by the limited
availability of battery-storage systems. We responded early on and
introduced measures to reduce costs and increase sales in order to quickly
return SMA to profitability. The sale of our Chinese subsidiaries has been
completed. Although a staff reduction in Germany unfortunately could not be
avoided, we were able to implement it in a socially responsible manner with
a voluntary severance program.\"

For the first quarter of 2019, the SMA Managing Board is anticipating sales
of EUR160 million to EUR170 million (Q1 2018: EUR182.5 million) and EBITDA
between EUR-5 million and EUR0 million (Q1 2018: EUR17.5 million). The SMA
Managing Board is confirming its sales and earnings guidance for the 2019
fiscal year as published on January 24, 2019, which forecasts sales of
between EUR800 million and EUR880 million and EBITDA of between EUR20
million and EUR50 million. The Managing Board estimates that depreciation
and amortization will amount to approximately EUR50 million. \"Since the
start of the year, SMA has posted a high order intake and a positive
business development,\" said Reinert. \"We will reinforce this trend over the
course of the year by tapping into new business fields, such as large-scale
storage systems and repowering, and by introducing new, cost-optimized
products and system packages. We will also seize the opportunities arising
from market consolidation and the anticipated growth in the Utility and
Storage segment and in the EMEA and Americas regions.\"

The SMA Annual Report for 2018 is available online at
www.SMA.de/IR/FinancialReports.

About SMA
As a leading global specialist in photovoltaic system technology, the SMA
Group is setting the standards today for the decentralized and renewable
energy supply of tomorrow. SMA's portfolio contains a wide range of
efficient PV inverters, holistic system solutions for PV systems of all
power classes, intelligent energy management systems and battery-storage
solutions as well as complete solutions for PV diesel hybrid applications.
Digital energy services as well as extensive services up to and including
operation and maintenance services for PV power plants round off SMA's
range. SMA inverters with a total output of around 75 gigawatts have been
installed in more than 190 countries worldwide. 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
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
Presse@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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28.03.2019 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
Germany
Phone: +49 (0)561 / 9522 - 0
Fax: +49 (0)561 / 9522 - 100
E-mail: info@sma.de
Internet: www.sma.de
ISIN: DE000A0DJ6J9
WKN: A0DJ6J
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Munich, Stuttgart, Tradegate Exchange
EQS News ID: 792553



End of News DGAP News Service
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792553 28.03.2019

Contact for Voting Rights Notifications

SMA Solar Technology AG

Investor Relations
Sonnenallee 1
34266 Niestetal
Germany

Fax +49 561 9522-1133