SMA Solar Technology : Generates Sales Record in 2016 and Substantially Increases Operating Earnings According to Provisional Figures

01/26/17

Category: Corporate News

DGAP-News: SMA Solar Technology AG / Key word(s): Forecast/Preliminary
Results
SMA Solar Technology AG: SMA Solar Technology AG Generates Sales Record in
2016 and Substantially Increases Operating Earnings According to Provisional
Figures

26.01.2017 / 11:43
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 Generates Sales Record in 2016 and Substantially
Increases Operating Earnings According to Provisional Figures
New Products and Digital Energy Management Set to Improve Profitability in
the medium term

Niestetal, January 26, 2017 - SMA Solar Technology AG (SMA/FWB: S92)
generated a sales record in 2016 with more than 8 GW of inverter output
sold (2015: 7.3 GW). According to provisional estimates by the Managing
Board, SMA generated sales of more than EUR940 million in continuing
operations in 2016 (pro-forma 2015: EUR981.8 million) and substantially
increased operating earnings before interest and taxes (EBIT) to
approximately EUR65 million (pro-forma 2015: EUR43.3 million) despite an
unexpectedly sharp decline in average selling prices of nearly 20%. Sales
and operating earnings are in line with the Managing Board's forecast. For
the fiscal year 2017, the SMA Managing Board expects the continued high
price pressure as well as market and segment shifts to reduce sales to
between EUR830 million and EUR900 million. Earnings before interest, taxes,
depreciation and amortization (EBITDA) are expected to decline to between
EUR70 million and EUR90 million. According to estimates by the Managing
Board, SMA will generate high operating cash flow thanks to its attractive
business model and increase net cash to more than EUR400 million in 2017.
At tomorrow's Capital Markets Day, the SMA Managing Board will present new
products and innovative solutions for the digitization of the energy
industry, which will lead to an improvement in profitability and a
sustainable boost to SMA's competitiveness from 2018 onward.

'In 2016, SMA continued successfully on the path to more profit and higher
cash flow. SMA has been the global market leader for more than two decades
in one of the most exciting industries of the 21st century. Through
enormous technological progress, photovoltaics is now one of the most
efficient energy carriers and will therefore push environmentally damaging
coal-fired power generation out of the energy mix over the next few years,'
said SMA CEO Pierre-Pascal Urbon. 'Future energy generation will be
decentralized, renewable and digital. This will provide attractive
opportunities for specialists in environmental and communication
technology. SMA will use digital energy management to create transparency
of energy flows across various sectors, such as photovoltaics, heating and
e-mobility, and to optimize total energy costs at the local level. With our
innovation, we are breaking new technological ground and entering strategic
partnerships in a targeted way. With its future service range, SMA will
make photovoltaics an integral component of the new energy market.'

Due to the high price pressure, the SMA Managing Board forecasts sales of
EUR830 million to EUR900 million and earnings before interest, taxes,
depreciation and amortization (EBITDA) of EUR70 million to EUR90 million
for the current fiscal year. Net cash will rise to more than EUR400 million
thanks to high operating cash flow.

'The fiscal year 2017 will certainly not be easy for SMA,' explained
Pierre-Pascal Urbon. 'We have already demonstrated on several occasions in
the past that we can counter the enormous price pressure in our industry
with technical innovation and the systematic reduction of fixed costs. At
tomorrow's Capital Markets Day, we will therefore present the new products
and services with which we will increase SMA's cross margin from 2018
onward. In addition, we will provide information about the market and
competitive situation and our strategic direction.'

The presentation on Capital Markets Day containing additional information
can be found at www.sma.de/en/investor-relations/publications/
presentations.html from the beginning of the event. SMA will publish the
complete consolidated financial statements for 2016 on March 30, 2017.

About SMA
The SMA Group with anticipated sales of about EUR1 billion in 2016 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
Germany

Head of Corporate Communications:
Anja Jasper
Tel. [phone]
[e-mail]

Press Contact:
Susanne Henkel
Manager Corporate Press
Tel. [phone]
Fax [phone]
[e-mail]

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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26.01.2017 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: [e-mail]
Internet: www.sma.de
ISIN: DE000A0DJ6J9
WKN: A0DJ6J
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart, Tradegate Exchange

End of News DGAP News Service
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