Quarterly Statement: January to March 2021

Quarterly Statement January to March 2021 SMA Solar Technology AG

Future

Energy.

Delivered.

Sustainably. Reliably. Inspiring.

SMA Solar Technology AG at a glance

SMA group				Q1 2021		Q1 2020		Change		Full Year
					2020
Sales		€ million		240.4			287.9		-16.5%		1,026.6
Export ratio		%		72.4			79.8				79.6
Inverter output sold		MW		3,360			4,367		-23.1%		14,416
Capital expenditure 1		€ million		9.4			7.2		30.6%		38.8
Depreciation		€ million		10.6			10.7		-0.9%		43.6
EBITDA		€ million		20.1			12.3		63.4%		71.5
EBITDA margin		%		8.4			4.3				7.0
Net income		€ million		8.0			-0.3				28.1
Earnings per share 2		€		0.23			-0.01				0.81
Employees 3				3,330			3,174		4.9%		3,264
in Germany				2,308			2,213		4.3%		2,262
abroad				1,022		961	6.3%	1,002

SMA group				2021/03/31		2020/12/31		Change
Total assets		€ million		1,076.9			1,051.2		2%
Equity		€ million		449.5			439.1		2%
Equity ratio		%		41.7			41.8
Net working capital 4		€ million		239.1			210.6		14%
Net working capital ratio 5		%		24.4			20.5
Net cash 6		€ million	226.7		226.0	0%

1. Excluding IFRS 16 Leasing
2. Converted to 34,700,000 shares
3. Reporting date; without temporary employees
4. Inventories and trade receivables minus trade payables and liabilities from advanced payments received for orders
5. Relating to the last twelve months (LTM)
6. Total cash minus interest-bearing financial liabilities to banks

CONTENTS

2 ECONOMIC REPORT

2 Results of operations

4 Financial position

5 Net assets

6	FORECAST REPORT
6	Preamble
6	The general economic situation

1. Future general economic conditions in the photovoltaics sector

1. Overall statement from the ­Managing Board on expected development of the SMA group

12 INTERIM CONSOLIDATED FINANCIAL­ STATEMENTS

12 Income Statement SMA group

1. Statement of Comprehensive Income SMA group
2. Balance Sheet SMA group
3. Statement of Cash Flows SMA group
4. Statement of Changes in Equity SMA group
5. Financial ratios by segments and regions

2Economic Report

ECONOMIC REPORT

Results of operations

Sales and earnings

SIGNIFICANT INCREASE IN EARNINGS

DESPITE LOWER SALES

From January to March 2021, the SMA group sold PV inverters with accumulated power of 3,360 MW (Q1 2020: 4,367 MW). In the reporting period, sales decreased by 16.5% to €240.4 million (Q1 2020: €287.9 million). The lower sales year on year resulted mainly from the postponement of orders due to the global coronavirus­ pandemic and an increase in the price of PV modules. In addition, sales in the first quarter of the previous year included an unusually large project in the U.S. The previous year's quarter is therefore suitable to only a limited extent as a reference value.

SMA is well positioned internationally and generates sales in all relevant regions. In the reporting period, the company generated 51.6% of external sales in European countries, the Middle East and Africa (EMEA), 35.9% in the North and South ­American (Americas) region and 12.5% in the Asia-Pacific (APAC) region (Q1 2020: 42.3% EMEA, 42.7% Americas, 15.0% APAC).

The main markets for SMA in the reporting period were again the U.S., Germany and Australia.

The Large Scale & Project Solutions segment made the largest contribution to sales in the first quarter of 2021, accounting for 43.0% (Q1 2020: 47.9%). In the reporting period, the Home ­Solutions segment generated 31.4% of the SMA group's sales, while the Business Solutions segment generated 25.6% (Q1 2020: 24.8% Home Solutions, 27.3% Business Solutions).

As of March 31, 2021, SMA had a large order backlog of €835.7 million (March 31, 2020: €797.4 million). Of this amount, €354.5 million is attributable to product business (March 31, 2020: €376.3 million). With €481.2 million, more than half of the order backlog continues to be attributable to the service

business­ . Most of this share will be implemented over the next five to ten years.

In the reporting period, earnings before interest, taxes, depreciation and amortization (EBITDA) significantly increased to €20.1 million (EBITDA margin: 8.4%; Q1 2020: €12.3 million; 4.3%). Earnings before interest and taxes (EBIT) rose to €9.5 million (Q1 2020: €1.6 million). This equates to an EBIT margin of 3.9% (Q1 2020: 0.6%). Net income amounted to €8.0 million (Q1 2020: -€0.3 million). Earnings per share thus amounted to €0.23 (Q1 2020: -€0.01).

Sales and earnings per segment

HOME SOLUTIONS SEGMENT INCREASES

SALES AND EARNINGS SIGNIFICANTLY

In the Home Solutions segment, SMA caters to global markets for small PV systems with and without connection to a smart home solution. The portfolio comprises single- and three-phase string inverters of the Sunny Boy and Sunny Tripower product families in the lower output range of up to 12 kW, integrated services, energy management solutions, storage systems of the Sunny Island and Sunny Boy Storage product families, charging solutions for electric vehicles, communication products and accessories. SMA's Home Solutions segment also offers services, such as extended warran- ties, spare parts and modernization of PV systems (Repowering), to enhance performance as well as digital energy services.

External sales in the Home Solutions segment rose by 6.0% to €75.6 million in the first quarter of 2021 (Q1 2020: €71.3 million). Its share of the SMA group's total sales was 31.4% (Q1 2020: 24.8%). The EMEA region accounted for 81.2% (Q1 2020: 77.8%) of the Home Solutions segment's gross sales, the ­Americas region for 10.8% (Q1 2020: 11.7%) and the APAC region for 8.0% (Q1 2020: 10.5%).

The Home Solutions segment's EBIT improved year on year to €14.2 million (Q1 2020: €5.2 million) driven by the increase in sales. In relation to external sales, the EBIT margin was 18.8% (Q1 2020: 7.3%).

SMA Solar Technology AG // Quarterly Statement January to March 2021

Economic Report

3

BUSINESS SOLUTIONS SEGMENT POSTS DECLINE IN SALES

In the Business Solutions segment, the focus is on global markets for medium-sized PV systems with and without an energy management solution. The product portfolio comprises the three-phase inverters of the product families Sunny Tripower with outputs of more than 12 kW and Sunny Highpower. Storage solutions and holistic energy management solutions for medium-sized PV systems and EV fleet charging solutions based on the ennexOS platform, medium-voltage technology and other accessories complement the range of products in this segment. In addition, SMA offers ­services up to and including system modernization and operational management of commercial PV systems (O&M business) as well as digital services.

External sales in the Business Solutions segment decreased to €61.6 million in the first quarter of 2021 (Q1 2020: €78.6 million) as a result of reluctance to invest due to the pandemic. Its share of the SMA group's total sales was 25.6% (Q1 2020: 27.3%). 73.6% of gross sales were attributable to the EMEA region, 15.7% to the APAC region and 10.7% to the Americas region (Q1 2020: 62.0% EMEA, 22.7% APAC, 15.3% Americas).

In the first quarter of 2021, the Business Solutions segment's EBIT decreased to -€4.1 million (Q1 2020: €0.8 million) as a result of the decline in sales. In relation to external sales, the EBIT margin was -6.7% (Q1 2020: 1.0%).

LARGE SCALE & PROJECT SOLUTIONS SEGMENT MAINTAINS EARNINGS LEVEL WITH LOWER SALES

The Large Scale & Project Solutions segment focuses on inter­ national PV and battery storage power plant markets with its powerful­ string inverters in the Sunny Highpower product family, the central inverters in the Sunny Central product family as well as the battery inverters in the Sunny Central Storage product

family­ . The outputs of inverters in this segment range from 150 kW to the megawatts. In addition, the SMA portfolio of this segment includes complete solutions comprising central inverters with their grid service and monitoring functions as well as all medium- and high-voltage technology and accessories. The portfolio is supplemented by services, for example, for the modernization and ­functional enhancement of PV power plants (Repowering), and operation and maintenance services (O&M business).

External sales in the Large Scale & Project Solutions segment decreased by 25.2% to €103.2 million in the first quarter of 2021 (Q1 2020: €138.0 million). The difference was mainly due to project delays as a result of the global coronavirus pandemic and was also influenced by the fact that an extremely large project in the U.S. was implemented in the same quarter of the previous year. Its share of the SMA group's total sales was 43.0%

(Q1 2020: 47.9%). The Americas region accounted for 69.8%

(Q1 2020: 75.2%) of the Large Scale & Project Solutions seg-

ment's gross sales, the EMEA region for 16.3% (Q1 2020: 12.0%)

and the APAC region for 13.9% (Q1 2020: 12.8%).

Despite the decline in sales, EBIT in the Large Scale & Project Solutions segment slightly improved to -€3.6 million (Q1 2020:

-€4.1 million). In relation to external sales, the EBIT margin was -3.5% (Q1 2020: -3.0%).

Development of significant income statement items

HIGHER GROSS MARGIN DESPITE DECLINE IN SALES

Cost of sales decreased by 22.0% year on year to €187.1 million (Q1 2020: €239.8 million), particularly in light of the lower sales in project business. A favorable product mix and cost optimization had a positive impact on the gross margin. In the reporting period, the gross margin was 22.2% (Q1 2020: 16.7%). SMA is con­ tinuously working on its product portfolio in all segments to tackle price pressure by optimizing the cost of existing products and introducing­ new and less expensive products.

Personnel expenses included in cost of sales increased by 6.3% to €30.6 million in the reporting period (Q1 2020: €28.8 million). Material costs, including changes in inventories, amounted to €139.9 million (Q1 2020: €184.7 million).

Quarterly Statement January to March 2021 // SMA Solar Technology AG