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SMA Posts Strong Growth with System Technology for Storage Applications and Benefits from Global Position in First Half of 2017
Overview of H1 2017:
- 3.8 GW inverter output sold (H1 2016: 3.9 GW)
- Sales of €381.1 million (H1 2016: €482.3 million) and EBITDA of €29.0 million (H1 2016: €71.2 million)
- High operating cash flow of €38.8 million (H1 2016: €55.3 million)
- Financial stability thanks to equity ratio of 49.7% (December 31, 2016: 48.3%) and high net cash of €401.6 million (December 31, 2016: €362.0 million)
- High order backlog of €673 million, of which €280 million is attributable to the product business
- Managing Board confirms raised sales and earnings guidance for fiscal year 2017
In the first six months of 2017, SMA Solar Technology AG (SMA/FWB: S92) sold PV inverters with a total output of 3.8 GW, which was thus on a par with the previous year (H1 2016: 3.9 GW). Sales fell to €381.1 million (H1 2016: €482.3 million) due to the overall drop in prices in all segments and regions. Thanks to its unique position, SMA achieved a balanced distribution of sales in its segments and regions in the first six months of the year. System solutions for commercial PV systems (Commercial) and storage applications enjoyed a positive performance. At regional level, SMA achieved significant sales growth in Asian markets.
Despite the sharp decline in sales, SMA achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of €29.0 million (EBITDA margin: 7.6%; H1 2016: €71.2 million, 14.8%). Net income amounted to €8.8 million in the first half of 2017 (H1 2016: €19.4 million). Earnings per share thus amounted to €0.25 (H1 2016: €0.56).
SMA’s business model is not capital-intensive. As a result, SMA generated high operating cash flows of €38.8 million in the reporting period (H1 2016: €55.3 million) and further increased its high liquidity reserve. Net cash rose to €401.6 million (December 31, 2016: €362.0 million). The equity ratio slightly increased to 49.7% (December 31, 2016: 48.3%). As such, SMA still has a highly solid balance-sheet structure. SMA will use its financial strength to benefit from the digitization of the energy industry and develop new business models.
“After a moderate start to the year, SMA increased its sales by 20% in the second quarter of 2017 as against the first three months of the year. We saw a favorable increase in all key segments, particularly in the Asia-Pacific region (APAC). For the second half of the year, we expect the business to significantly pick up again based on strong incoming orders in all markets,” explained SMA’s CEO Pierre-Pascal Urbon. “In the medium term, we anticipate exponential growth in the storage application segment. SMA already has system technologies for using large storage solutions to stabilize electricity grids or using batteries to increase self-consumption in private households or companies. Thanks to our intelligent energy management and strategic alliances, we have laid the foundation for new business models. SMA will therefore benefit from the global trend toward decentralized energy and the digitization of the energy industry.”
The SMA Managing Board confirms its sales and earnings guidance for fiscal year 2017, which was increased on August 1, 2017. It forecasts sales of between €900 million and €950 million and EBITDA of between €85 million and €100 million. Net cash is expected to rise to more than €450 million thanks to high operating cash flow.
You can find the Half-Yearly Financial Report for January to June 2017 at www.SMA.de/IR/FinancialReports.
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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