DGAP-News

SMA Solar Technology AG: 2014 Result: SMA Solar Technology AG Reports Considerable Loss Due to Market Downturn in Europe, Weak Business in China and One-Time Items - Seite 2

subsidiary Zeversolar totaling EUR129.7 million. The operating result
before provisions for the staff reduction is in line with the published
forecast. The consolidated earnings amounted to EUR-179.3 million in the
reporting period (2013: EUR-66.9 million).

"We are not satisfied with our business performance in 2014. Due to our
high fixed costs, we were not able to respond to the significant decline in
demand in Europe fast enough. Demand in Germany almost halved last year as
a result of political decisions. For the current fiscal year, we are
expecting a further decline in the installation of new PV systems in
Germany. In addition, our result in 2014 was impacted by the losses of our
Chinese subsidiary Zeversolar and considerable one-time items. We are
planning extensive transformation measures to generate profits from sales
of only EUR700 million. In this regard, SMA unfortunately needs to lay off
approximately 1,600 employees (full-time positions) worldwide. In the scope
of the severance program that ended on March 25, SMA was expected to be
able to realize the staff reduction in a short period of time without
involuntary layoffs. Currently, there is a gap of approx. 100
full-time-positions in Kassel/Niestetal in order to achieve the planned
target for staff reduction. The fact that we will be able to realize the
planned staff reduction without involuntary layoffs in a short period of
time is a very good result. While the personnel adjustments are extremely
painful for SMA, they are unfortunately necessary to return to
profitability. With net cash of EUR225.4 million and an equity ratio of
approximately 47%, we can finance the transformation from our own
resources," explained SMA Chief Executive Officer Pierre-Pascal Urbon.
Especially the SMA workers council declared its will to find alternative
solutions to involuntary layoffs for the remaining staff reduction.

For the first quarter of 2015, the SMA Managing Board is anticipating sales
of EUR210 million to EUR230 million (Q1 2014: EUR176.3 million) and
operating earnings (EBIT) of EUR-5 million to EUR-10 million. It is
therefore expecting business performance to be more positive than in the
same period of the previous year (Q1 2014: EUR-22.0 million). SMA will make
a strong start to the second quarter with an order backlog of more than
EUR150 million (excluding service business). The Managing Board therefore
confirms the sales and earnings forecast for the current fiscal year and
predicts sales of EUR730 million to EUR770 million. Given that the savings