EQS-News: SMA Group reports a solid first half of 2024 in a challenging market 

EQS-News: SMA Solar Technology AG / Key word(s): Half Year Results/Half Year
Report
SMA Group reports a solid first half of 2024 in a challenging market

08.08.2024 / 06:58 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SMA Group reports a solid first half of 2024 in a challenging market

* Sales at €759.3 million compared to €778.9 million in the first half of
2023

* EBITDA of €80.6 million (H1 2023: €125.3 million)

* Order backlog of €1.35 billion (June 30, 2023: €2.45 billion)

* Equity ratio rose slightly to 42.6% (December 31, 2023: 42.3%)

* Managing Board confirms revised 2024 guidance from June 18: sales of
between €1,550 million and €1,700 million; EBITDA of between €80 million
and €130 million


Niestetal, August 8, 2024 – As expected, sales and earnings for SMA Solar
Technology AG (SMA/ISIN: DE000A0DJ6J9/FWB: S92) have been lower in the first
half of 2024 compared to the previous year. Group sales reached €759.3
million and was therefore slightly below the previous year (H1 2023: €778.9
million).

Sales in the Home Solutions and Commercial & Industrial Solutions segments
were significantly influenced by the ongoing high inventory levels at
distributors and installers, as well as a generally very challenging market
environment. Against this backdrop, sales in the Home Solutions segment
amounted to €109.9 million (H1 2023: €327.3 million) and in the Commercial &
Industrial Solutions segment to €113.6 million, after €194.2 million in the
first half of 2023. As planned, the Large Scale & Project Solutions segment
posted significant sales growth, achieving €535.8 million compared to €257.4
million in the first half of 2023.

Earnings before interest, taxes, depreciation and amortization (EBITDA),
amounted to €80.6 million (including €19.1 million from the sale of shares
in elexon GmbH in Q1 2024), compared to €125.3 million in the first half of
2023. This corresponds to an EBITDA margin of 10.6% (H1 2023: 16.1%). The
main reasons for the change compared with the previous year were the reduced
sales volumes, the change in the product mix, and an increase in the Group’s
cost base. Earnings before interest and taxes (EBIT) amounted to €56.2
million compared with €106.1 million in the same period of the previous
year. This corresponds to an EBIT margin of 7.4% (H1 2023: 13.6%).

The EBIT in the Home Solutions and Commercial & Industrial Solutions
segments was below the value for the previous year due to the low level of
sales, a reduced utilization, and the corresponding lack of coverage of
fixed costs. Home:
–€21.6 million (H1 2023: €93.4 million); Commercial & Industrial Solutions:
–€45.2 million (H1 2023: €6.7 million). The Large Scale & Project Solutions
segment significantly improved its profitability compared with the same
period of the previous year thanks to the high level of sales and associated
fixed cost degression, as well as a profitable product mix, achieving EBIT
of €100.5 million (H1 2023: €8.8 million).

“The global PV market has developed very inconsistently this year. Incoming
orders in the Home and Commercial & Industrial segments continue to be
influenced by the high inventory levels at distributors and installers. In
addition, electricity prices have gone down, which in many countries is
resulting in postponed investments and restrained final demand, as well as
excess capacity by Chinese manufacturers, which is putting additional
pressure on the market. Despite the fact that the prices for PV systems have
already gone down, customers continue to anticipate further price decreases.
Our Large Scale & Project Solutions segment, which continues to record an
above-average operational performance, is not affected by this. Within this
challenging environment, it is once again clear that our diversified
business model with three segments is a huge advantage for SMA, which means
that we are able to be more flexible than our competitors,” said Jürgen
Reinert, CEO of SMA. “One example is production, where we are currently
directing capacity into the Large Scale segment so that we can process the
high order backlog as planned.”

“Despite the volatile market, the first half of 2024 showed a solid
development. In the Large Scale & Project Solutions segment, we have once
again made significant gains in both sales and earnings during the second
quarter. Given the delayed market recovery in the Home and C&I segments, we
have expanded our sales activities to other product groups and countries
during the last few weeks. We have also implemented a number of measures to
adapt the cost structure and working capital to the reduced sales level in
the Group, as well as to stabilize the cash flow,” added Barbara Gregor, CFO
at SMA.

The net income amounted to €44.1 million (H1 2023: €103.5 million). Earnings
per share thus increased to €1.27 (H1 2023: €2.98).

The SMA Group's free cash flow fell to –€202.6 million after €80.6 million
in the previous year as a result of higher net working capital. At €65.7
million, net cash on June 30, 2024, was below the level at the end of the
previous year (December 31, 2023: €283.3 million). With an equity ratio of
42.6% (December 31, 2023: 42.3%), SMA continues to have a good equity
capital base.

The order backlog was €1,348.6 million as of June 30, 2024 (June 30, 2023:
€2,453.7 million). At €988.0 million, three-quarters of this is attributable
to product business (June 30, 2023: €2,075.7 million).

The SMA Managing Board confirms its sales and earnings guidance for fiscal
year 2024 as revised on June 18, 2024, which predicts sales of between
€1,550 million and €1,700 million (2023: €1,904.1 million) and EBITDA of
between €80 million and €130 million (2023: €311 million).


Additional Information

The quarterly statement for January to June 2024 can be found at
www.sma.de/en/investor-relations/publications. SMA will discuss its business
development during a conference call for analysts and investors at 1:30 p.m.
on August 8, 2024. An overview of analyst estimates (consensus) is available
at Analyst Coverage & Consensus | SMA Solar.

About SMA

As a leading global specialist in photovoltaic and storage 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 and battery inverters, holistic system
solutions for PV and battery-storage systems of all power classes,
intelligent energy management systems and charging solutions for electric
vehicles and power-to-gas applications. Digital energy services as well as
further comprehensive services round off SMA’s range. SMA solar inverters
installed worldwide in the last 20 years, with a total output of around 132
GW, help avoid over 70 million tonnes of CO2 emissions annually. SMA’s
multi-award-winning technology is protected by more than 1,600 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 and TecDAX index.

SMA Solar Technology AG

Sonnenallee 1

34266 Niestetal

Germany

Press Contact:

Dagmar Buth-Parvaresh

Tel. +49 561 9522-421414

Presse@SMA.de

Investor Relations Contact:

Viona Brandt

Tel. +49 175 93 93 320

Investor.Relations@SMA.de

Disclaimer:

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 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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08.08.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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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, TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard);
Regulated Unofficial Market in Berlin, Dusseldorf,
Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1963385



End of News EQS News Service
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1963385 08.08.2024 CET/CEST