SMA Group continues on growth path: First half year with significant increase in sales and earnings as well as faster profitability improvement in all segments

SMA Group continues on growth path: First half year with significant increase in sales and earnings as well as faster profitability improvement in all segments

Overview of H1 2023:

• Sales increase to €778.9 million (H1 2022: €471.8 million)
• EBITDA of €125.3 million significantly above previous year (H1 2022: €15.9 million)
• All segments with positive EBIT
• Sustained high order backlog of around €2.5 billion (H1 2022: €1.3 billion)
• Positive free cash flow of €80.6 million increases net cash to €304.6 million
• Conclusion of a new revolving credit line of €380.0 million for further growth financing
• Managing Board confirms raised sales and earnings guidance for 2023:
  Sales of between €1,700 million and €1,850 million; EBITDA of between €230 million and €270 million

Niestetal, August 10, 2023 – SMA Solar Technology AG (SMA/ISIN: DE000A0DJ6J9/FWB: S92) successfully continued its growth course in the second quarter of 2023. Consolidated sales rose by 65.1% to €778.9 million in the first half of 2023 (H1 2022: €471.8 million) and were thus at the upper end of the range published on June 23, 2023. All three segments contributed to this very positive performance. The Home Solutions segment more than doubled its sales to €327.3 million (H1 2022: €135.5 million) in the first half of the year. Sales in the Commercial & Industrial Solutions segment also rose significantly by 64.0% from €118.4 million to €194.2 million. Sales in the Large Scale and Project Solutions segment reached €257.4 million after €217.9 million in the same period of the previous year (up 18.1%).

Earnings before interest, taxes, depreciation and amortization (EBITDA) also increased significantly from €15.9 million in the first half of 2022 to €125.3 million. This equates to an EBITDA margin of 16.1% (H1 2022: 3.4%). Reasons for the positive development include both the increase in sales as a result of improved material supply on the supplier side and the associated fixed cost degression in production, as well as a continued high-margin product mix. At €106.1 million, earnings before interest and taxes (EBIT) were also significantly higher than in the same period of the previous year (H1 2022: -€2.8 million). This equates to an EBIT margin of 13.6% (H1 2022: -0.6%). All segments recorded positive earnings development and significantly improved their profitability: EBIT Home Solutions: €93.4 million (H1 2022: €17.0 million); Commercial & Industrial Solutions: €6.7 million (H1 2022: -€11.1 million); Large Scale and Project Solutions: €8.8 million (H1 2022: -€6.3 million).

“The particularly good overall development in the first half of the year shows that we are optimally positioned with our diversified business model as a systems and solutions provider serving three segments,” said Dr. Jürgen Reinert, CEO at SMA. “We want to continue to grow profitably. With our new gigawatt factory, we will create an additional 20 GW of capacity and more than 200 new jobs starting 2025. In fact, three times as many jobs are created along the entire value chain.”

“After a strong start to the year, we successfully continued our growth path in the second quarter of 2023 and significantly increased both sales and earnings in all three segments,” added Barbara Gregor, CFO at SMA. “All three segments also closed the first half of 2023 with a positive result and have thus returned to profitability earlier than planned.”

Net income increased significantly to €103.5 million (H1 2022: -€10.6 million). Earnings per share rose to €2.98 (H1 2022: -€0.31).

The SMA Group is solidly financed and generated a positive free cash flow of €80.6 million in the first half of 2023. Net cash thus increased further to €304.6 million (December 31, 2022: €220.1 million). In addition, the SMA Group successfully concluded a new revolving credit line of €380 million with an extended group of banks in June 2023, thus setting the course for further profitable growth. The credit line has a term of five years with an extension option and replaces the previous syndicated credit line of €100 million. The equity ratio remained high at 39.5% (December 31, 2022: 41.8%).

As of June 30, 2023, the SMA Group still had a very large order backlog of €2,453.7 million (June 30, 2022: €1,290.3 million). At €2,075.3 million, more than three-quarters of this is attributable to product business (June 30, 2022: €861.3 million).

The SMA Managing Board confirms its sales and earnings guidance for the 2023 fiscal year, which was again adjusted upwards on June 23, 2023. It forecasts sales of between €1,700 million and €1,850 million (previously: €1,450 million and €1,600 million) and EBITDA of between €230 million and €270 million (previously: €135 million and €175 million).

Additional information

The half year report for January to June 2023 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 10, 2023. An overview of analyst estimates (consensus) is available at www.SMA.de/IR/Aktie.

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 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 more than 130 gigawatts have been installed in more than 190 countries worldwide. They help avoid the emission of around 63 million tons of CO₂e annually. This is equivalent to stopping more than €12 billion of environmental damage. SMA’s multi-award-winning technology is protected by more than 1,700 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 TecDAX index and MDAX 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 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/en. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.