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SMA Solar Technology AG: SMA Solar Technology AG's Financial Result from January to September 2014: Significant Sales Increase in Third Quarter Cannot Compensate for Low Level of Previous Months - Seite 2

million (Q3 2013: EUR12.7 million). The improvement in earnings is
attributable to the measures introduced to reduce material and operating
costs. The staff reduction that has already been completed was also
reflected in earnings. Due to the weak order situation and the high price
pressure in the first half of the year, however, SMA posted negative EBITDA
of EUR-8.2 million in the reporting period (Q1-Q3 2013: EUR26.9 million).
In the reporting period, EBIT fell to EUR-72.7 million (Q1-Q3 2013:
EUR-30.1 million). This corresponds to an EBIT margin of -13.2%
(Q1-Q3 2013: -4.2%). The consolidated earnings for the period amounted to
EUR-54.1 million (Q1-Q3 2013:
EUR-22.0 million).

"The increase in demand in the third quarter was not as sharp as expected.
First, projects were postponed until the fourth quarter of 2014 and next
fiscal year. Second, commercial business in Europe deteriorated again
compared to the first half of the year. For the fourth quarter of 2014, we
expect a better sales situation, which we can already discern in SMA's high
order backlog. Overall, the market for PV inverters will remain volatile
and dominated by high price pressure. Our strategy is aimed at returning
SMA to profitability in this market environment. With an equity ratio of
almost 55% and net cash of around EUR225 million, SMA will be able to
implement the required measures with its own resources. The acquisition of
Phoenix Solar's European service portfolio, which was concluded last
Friday, is an important component of this strategy," explains SMA CEO
Pierre-Pascal Urbon.

The SMA Managing Board confirms its sales and earnings forecast for fiscal
year 2014 as adjusted on July 30, 2014. It predicts sales of EUR850
million to EUR950 million for the SMA Group. In the best-case scenario, the
Managing Board also expects to break even in terms of operating earnings.
At the lower end of the sales forecast, the SMA Managing Board anticipates
a loss of approximately EUR45 million. To achieve the lower end of the
sales forecast, the contracts expected to be concluded in the project
business in the fourth quarter would have to be turned around in the
current fiscal year. The SMA Managing Board also expects commercial
business to pick up as usual toward the end of the year. The earnings
forecast does not take into account any non-recurring expenses from the
staff reduction announced on July 30, 2014.

The financial report for January to September 2014 is available online at
www.SMA.de/IR/FinancialReports.

About SMA
The SMA Group generated sales of more than EUR930 million in 2013 and is