2014-05-28

SMA Solar Technology AG and Danfoss A/S Sign Cooperation Agreement to Form One of the World's Largest Converter Alliances


DGAP-News: SMA Solar Technology AG / Key word(s): Alliance
SMA Solar Technology AG: SMA Solar Technology AG and Danfoss A/S Sign
Cooperation Agreement to Form One of the World's Largest Converter
Alliances

28.05.2014 / 16:32

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Joint Corporate News of SMA Solar Technology AG and Danfoss A/S

SMA Solar Technology AG and Danfoss A/S Sign Cooperation Agreement to Form
One of the World's Largest Converter Alliances

Niestetal/Nordborg, May 28, 2014-SMA Solar Technology AG (SMA/FWB: S92) and
Danfoss A/S signed a contract today to enter into a close strategic
partnership. With this agreement, the two leading system technology
specialists will start to further boost their competitiveness. The goal is
to sustainably strengthen their cost positions through economies of scale
and through joint development initiatives. According to the plans announced
in February, Danfoss will acquire 20% of SMA's outstanding shares and sell
its entire solar inverter business to SMA. The necessary approval by the
antitrust authorities has already been granted.

\"Danfoss is very successful in the field of automated drives. This market
has been characterized by fierce competition for many years. Accordingly,
Danfoss has focused its strategy on continuous cost reduction by using
global procurement opportunities and technological innovations. We will
benefit from this experience and from economies of scale, thereby
strengthening our leading position in the global photovoltaic market. We
will accelerate innovation cycles through collaborative efforts in
development and systematically reduce our product costs,\" explained SMA
Chief Executive Officer Pierre-Pascal Urbon. In addition, by taking over
Danfoss's PV inverter business SMA will be able to serve the high-growth
market segment of medium-sized PV systems in Europe, the U.S. and Asia even
better.

\"This strategic partnership is economically attractive to both companies.
Together with SMA, we will form one of the world's largest inverter
alliances. In the coming years, Danfoss will certainly benefit from the
pooled purchasing power and the high growth rates of the solar industry.
The procurement synergies are expected to save both companies double-digit
millions of euros annually starting in 2015. Furthermore, with our 20%
stake in SMA we want to continue our involvement in the solar sector and
participate in the mid- and long-term positive growth potential in that
sector,\" said Niels B. Christiansen, President and CEO of Danfoss.

Urbon and Christiansen emphasize that they will implement the cooperation
just as swiftly as the prior negotiations. This will be evident at the
world's largest solar trade show, Intersolar Europe, on June 4-6, 2014, in
Munich. SMA will present the MLX inverter (now Sunny Tripower 60000 TL),
developed by Danfoss for medium-sized PV systems, at their booth. The
system optimally enhances the SMA product portfolio. In addition, SMA and
Danfoss employees will answer questions on products and services together
at the companies' exhibition booths. SMA will take on responsibility for
full service for all installed Danfoss inverters.

As part of the cooperation, Danfoss acquires 6.94 million of SMA Solar
Technology AG shares at a price of EUR43.57 per share from the SMA
founders, their trusts and families. The cash consideration corresponds to
a premium of 21% based on the volume-weighted average share price over the
last 60 days before the cutoff date of 27 May, 2014. The transaction volume
amounts to EUR302.38 million. After the transaction's completion the freely
tradable free float of SMA shares will be at 25.05%. The SMA founders,
their trusts and families will hold 54.95% of SMA shares after the
transaction is completed. Danfoss will not buy or sell any further SMA
shares for a lock-up period of at least two years.

About SMA
The SMA Group generated sales of EUR932.5 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.

About Danfoss
Danfoss is a world-leading supplier of technologies that meet the growing
need for food supply, energy efficiency, climate-friendly solutions and
modern infrastructure. The company's wide range of products and services
are used in areas such as cooling food, air conditioning, heating
buildings, controlling electric motors and powering mobile machinery.
Danfoss is also active in the field of solar and wind power as well as
district heating and cooling infrastructure for cities and urban
communities. Danfoss Solar Inverters develops and manufactures a
comprehensive range of grid-connected photovoltaic inverters for all PV
applications, backed by some of the most extensive inverter testing
facilities in the industry. The Group employs around 22,500 employees and
sells its products in more than 100 countries around the world. In 2013,
Danfoss generated net sales of EUR4.509 billion.

SMA Solar Technology AG Danfoss A/S
Sonnenallee 1 Nordborgvej 81
34266 Niestetal 6430 Nordborg
Germany Denmark

Head of Corporate Communication: Danfoss Media Relations:
Anja Jasper Tel. +45 70 20 44 88
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:
Julia Damm
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.


End of Corporate News

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28.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart


End of News DGAP News-Service
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271107 28.05.2014

SMA Solar Technology AG
Press office
Sonnenallee 1
34266 Niestetal - Germany

Telephone: +49 561 9522-1124
Fax: +49 561 9522-421400

press@SMA.de