SMA Solar Technology AG Considerably Increases Operating Earnings and Net Cash Flow in First Nine Months of 2016

Overview January to September 2016 :

• Sales increase to €708.8 million (Q1-Q3 2015: €686.9 million)

• International share again rises to 90.0% (Q1-Q3 2015: 86.9%)

• High profitability with operating earnings (EBIT) of €59.4 million (Q1-Q3 2015: €9.9 million)

• Net cash flow considerably increased to €123.6 million (Q1-Q3 2015: €70.4 million)

• Financial stability thanks to solid equity ratio of 49.7% (December 31, 2015: 49.1%) and high net cash of €352.8 million (December 31, 2015: €285.6 million)

• Managing Board confirms its sales and earnings forecast for fiscal year 2016 adjusted on October 24, 2016

SMA Solar Technology AG (SMA/FWB: S92) increased its sales and earnings from January to September 2016 despite high price pressure in all market segments and regions. SMA Group sales rose by 3.2% year on year to €708.8 million (Q1-Q3 2015: €686.9 million). Operating earnings (EBIT) increased considerably to €59.4 million (Q1-Q3 2015: €9.9 million). The main earnings driver was the segment for large-scale PV power plants (Utility). In addition, the segment for commercial PV systems (Commercial) continued its positive business performance. From January to September 2016, SMA sold PV inverters with a cumulative power of 5.7 GW (Q1-Q3 2015: 5.0 GW). SMA’s high international share of sales of 90.0% (Q1-Q3 2015: 86.9%) underscores its strong international positioning.

As a result of increased sales volumes and the fixed cost reduction, EBITDA improved considerably from January to September 2016 to €107.9 million (EBITDA margin: 15.2%; Q1-Q3 2015: €64.6 million, 9.4%). The result includes one-time items from the consolidation of worldwide production sites. Consolidated earnings amounted to €36.9 million (Q1-Q3 2015: €–13.7 million). Earnings per share thus amounted to €1.06 (Q1-Q3 2015: €–0.39).

The considerable increase in SMA’s flexibility and the attractiveness of the business model can be seen in its net cash flow in particular. The net cash flow increased considerably in the first nine months of 2016 to €123.6 million (Q1-Q3 2015: €70.4 million). Net cash increased to €352.8 million (December 31, 2015: €285.6 million). With an equity ratio of 49.7% (December 31, 2015: 49.1%), SMA has a comfortable equity capital base and continues to boast a very solid balance sheet structure.

“In a market environment characterized by increasing price pressure, SMA has shown its strengths in the first nine months of 2016 and considerably increased its net cash flow. Thanks to our strong product portfolio for large-scale PV power plants and medium-sized PV systems and our service business, we compensated for the market-driven decline in small PV systems and successfully defended our global market leadership,” explained SMA Chief Executive Officer Pierre-Pascal Urbon. „In the coming months, the policy of Donald Trump president-elect will be an important issue for the industry. While the introduction of import duties on Chinese goods in the U.S. as it is planned by Trump could be advantageous for us, he has never made a secret of the fact that he doesn’t think much of renewable energy. However, the current U.S. incentive programs (Investment Tax Credit) were passed jointly by Democrats and Republicans in Congress. Therefore, the situation should not be overestimated at present. Another factor influencing the market is the halving of the Chinese photovoltaic market. To tap into foreign markets, Chinese competitors, who are fighting for survival, are trying to offset the disadvantages in the functionality and quality of their products, and the lack of service infrastructure with an aggressive pricing policy. It is alarming that many Chinese PV inverters do not even come up to legal standards. In contrast, SMA has a complete, multi-award-winning product portfolio for all power ranges, certified for compliance with international standards, and a global sales and service network that allows us to support our customers on-site. Our internationalization strategy and consolidation of our production locations are absolutely the right course. Our goal is to at least absorb the market fluctuations while also keeping costs as low as possible. With our solid financial position, we are well-placed to deal with the changes ahead.”

The SMA Managing Board confirms its sales and earnings forecast for fiscal year 2016 adjusted on October 24, 2016. This forecast anticipates sales of €900 million to €950 million and a significant increase in operating earnings (EBIT) year on year to between €60 million and €70 million. The earnings forecast takes into account one-off items from the consolidation of global production sites of a low double-digit amount. However, the positive impact on earnings from the disposal of SMA Railway Technology GmbH is no longer considered in the forecast.

You can find the quarterly statement for January to September 2016 at

About SMA 
The SMA Group with sales of about €1 billion in 2015 is the global market leader for solar inverters, a key component of all PV plants, and offers innovative key technologies for future power supply structures. It is headquartered in Niestetal, near Kassel, Germany, and is represented in 20 countries. The Group employs more than 3,000 people worldwide. SMA has an extensive range of products, which offers the right inverters for all module types and plant sizes; for small residential systems as well as large-scale plants, grid-connected photovoltaic systems as well as off-grid and hybrid systems. Moreover, SMA offers system technology for various battery technologies and system sizes and collaborates with renowned battery manufacturers and companies from the automotive industry. The SMA technology is protected by about 700 patents and utility models worldwide. The range of services is supplemented by comprehensive services and operational management of large-scale PV power 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 is currently the only company in the solar industry that is listed 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

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 The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.