Half

Half-Yearly Financial Report

January to June 2023  |  SMA Solar Technology AG

SMA Solar Technology AG at a glance

SMA Group

H1 2023

H1 2022

Change

Full year 2022

Sales

€ million

778.9

471.8

65.1%

1,065.9

Export ratio

%

59.5

70.0

68.8

Inverter output sold

MW

7,213

5,757

25.3%

12,225

Capital expenditure 1

€ million

35.5

29.8

19.1%

65.8

Depreciation

€ million

19.3

18.7

3.1%

38.1

EBITDA

€ million

125.3

15.9

n/a

70.0

EBITDA margin

%

16.1

3.4

6.6

Net income

€ million

103.5

-10.6

n/a

55.8

Earnings per share 2

€

2.98

-0.31

1.61

Employees 3

3,945

3,540

11.4%

3,635

in Germany

2,769

2,530

9.4%

2,610

abroad

1,176

1,010

16.4%

1,025

SMA Group

2023/06/30

2022/12/31

Change

Total assets

€ million

1,430.7

1,110.0

28.9%

Equity

€ million

565.7

463.5

22.1%

Equity ratio

%

39.5

41.8

Net working capital 4

€ million

250.4

238.5

5.0%

Net working capital ratio 5

%

18.2

22.4

Net cash 6

€ million

304.6

220.1

38.4%

Adjusted free cashflow

€ million

80.6

-33.2

0.0%

CONTENTS

CONSOLIDATED INTERIM MANAGEMENT REPORT 

2 BASIC INFORMATION ABOUT THE GROUP

6 ECONOMIC REPORT

13 Preamble

13 The general economic situation

13 Future general economic conditions in the photovoltaics sector

16 Overall statement from the Managing Board on expected development of the SMA Group

HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS

18 Income statement SMA Group 

22 General information

24 Financial ratios by segments and regions

31 RESPONSIBILITY STATEMENT

32 REVIEW REPORT 

2Consolidated Interim Management Report - Basic information about the Group

CONSOLIDATED INTERIM MANAGEMENT REPORT 1

BASIC INFORMATION ABOUT THE GROUP

Business activity and organization

SMA Solar Technology AG and its subsidiaries (SMA Group) develop, produce and sell systems and solutions for the efficient and sustainable generation, storage and use of solar energy. These include PV and battery inverters, monitoring systems for PV systems, charging solutions for electric vehicles as well as intelligent energy management systems and digital services for the future energy supply. Extensive services up to and including operation and maintenance services for photovoltaic power plants (O&M business) as well as medium-voltage technology and power supplies for hydrogen production round off the product range. With its products and services, the SMA Group actively contributes to making a sustainable, secure and cost- effective energy supply a reality worldwide.

Organizational structure

LEGAL STRUCTURE OF THE GROUP

As the parent company of the SMA Group, SMA Solar Technology AG, headquartered in Niestetal near Kassel, Germany, takes over all of the functions required for its operative business. The parent company holds, either directly or indirectly, 100% of the shares of all the operating companies that belong to the SMA Group. The Consolidated Interim Management Report includes information regarding the parent company and all 30 Group companies (H1 2022: 28), including seven domestic companies and 24 companies based abroad. In addition, SMA Solar Technology AG holds an unchanged 42% interest in elexon GmbH compared with December 31, 2022. The joint venture

in the field of charging infrastructure facilities was established in 2019 and is recognized as a joint venture in the Half-Year Consolidated Financial Statements according to the equity method as in the previous year.

1 In individual cases, rounding may result in values in this report not adding up exactly to the totals given and percentages not being derived from the values presented.

ORGANIZATIONAL AND REPORTING STRUCTURE

The SMA Group operates as a matrix organization. In this organization, the Home Solutions, Commercial & Industrial (C&I) Solutions and Large Scale & Project Solutions segments manage development, operational service and sales, production and procurement/logistics as well as quality assurance and order processing.

REPORTING STRUCTURE

SMA Group

Home Solutions

Commercial &

Large Scale &

Industrial Solutions

Project Solutions

segment

segment

segment

MANAGEMENT AND CONTROL

In accordance with the German Stock Corporation Act, the executive bodies consist of the Annual General Meeting, the Managing Board and the Supervisory Board. The Managing Board manages the company. The Supervisory Board appoints, supervises and advises the Managing Board. The Annual General Meeting elects shareholder representatives to the Supervisory Board and grants or refuses discharge to the Managing Board and the Supervisory Board.

CHANGES TO THE MANAGING BOARD

Since December 1, 2022, the Managing Board of SMA Solar Technology AG has comprised the following members: Dr.-Ing. Jürgen Reinert (Chairman of the Managing Board, Board Member for Strategy and Technology, Sales and Service, Human

SMA Solar Technology AG // Half-Yearly Financial Report January to June 2023

Basic information about the Group - Consolidated Interim Management Report

3

Resources, Operations and for the SMA segments) and Bar- bara Gregor (Board Member for Finance, Legal, Corporate Governance, Compliance, Internal Audit and capital market communication).

COMPOSITION OF THE SUPERVISORY BOARD

The Supervisory Board of SMA Solar Technology AG, which represents shareholders and employees in equal measure, consists of Roland Bent, Kim Fausing (Deputy Chairman), Alexa Hergenröther, Uwe Kleinkauf (Chairman), Ilonka Nußbaumer and Jan-Henrik Supady as shareholder representatives. The employees are represented on the Supervisory Board by Martin Breul, Oliver Dietzel, Johannes Häde, Yvonne Siebert, Romy Siegert and Dr. Matthias Victor.

Research and development

The SMA Group uses its systems expertise to develop holistic solutions comprising hardware, software and operative as well as digital services for different applications in the fields of photo- voltaics, battery-storage systems and electric vehicle charging, as well as for comprehensive energy management across all segments and sectors (power generators, household appliances, storage systems, heating, ventilation and air-conditioning,e-mo- bility). To offer our customers technically mature and economic system solutions in all market segments and regions, we selectively collaborate with strong partners. With our continuous research and our market- and customer-focused development, we can further reduce the consumer cost of PV electricity, optimize the use of energy and decrease the complexity in the new, decentralized and digital energy world.

Forward-looking development approach

With the growing importance of photovoltaics for the global power generation and the increasing integration of PV systems into complete systems, system technology demands on system integration, connectivity and the provision of grid services for a reliable energy supply are taking center stage. In this context, the SMA Group's development focus is on highly integrated and digitalized solutions that cover as many functions as possible (all- in-one solution). Focus areas of our research and development activities also include energy storage systems, e-mobility, energy market integration and power-to-gas.

In product development, we are pursuing a platform strategy aimed at being able to quickly respond to market changes and systematically reducing product costs. By standardizing the architecture of the core components and integrating key system func- tions, we are increasing the proportion of identical components

and software modules across the entire portfolio while also reducing the number of components in the system in order to offer our customers highly efficient solutions. Customization in line with different markets and customer needs is implemented partly through the connection area and software as well as through different power classes based on the platform. 1

SMA Solar Technology AG had 1,621 protected patents and utility models worldwide at the end of the reporting period. In addition, more than 562 other patent applications were still pending as of June 30, 2023. Furthermore, SMA Solar Technology AG holds the rights to 1,472 registered trademarks.

In addition to the (further) development of solutions for the efficient generation, storage and use of solar energy, for electric vehicle charging and charging management and for intelligent energy management across various sectors, the focus of development in the reporting period was on optimizing hydrogen produc- tion. The SMA Group was already involved in the implementation of related projects on several continents (see "Project business" section).

Holistic solutions for the energy supply of the future 2

APPLICATIONS FOR PRIVATE HOMES: HYBRID INVERTERS AT THE HEART OF RENEWABLE ENERGY MANAGEMENT

The Sunny Boy Smart Energy inverter system and the modular SMA Home Storage battery were presented at the Intersolar Europe 2023 in June. These products offer flexibility and a comprehensive solution from a single source in order to deliver customized PV systems that are tailored to home owners' budgets and requirements.

The Sunny Boy Smart Energy is an all-in-one inverter for PV and battery. Thanks to expandable backup options, clean energy is available even during grid failures. The Sunny Boy Smart Energy is compatible with the new SMA Home Storage battery and with HV batteries from all leading brands. Designed for intensive use and adaptability to different applications, the SMA Home Storage battery offers expandable capacity.

The Sunny Boy Smart Energy will be available in the U.S. from the fourth quarter of 2023. Depending on the country-specific certifi- cation, Germany, Austria, Benelux, Spain, Italy and Switzerland will follow at the beginning of 2024. Australia and other Euro- pean countries will follow in the course of 2024. The SMA Home Storage battery will be available in Germany and Austria from August 2023 followed by the Benelux countries, Spain and Italy.

Half-Yearly Financial Report January to June 2023 // SMA Solar Technology AG

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SMA Solar Technology AG published this content on 11 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2023 10:18:09 UTC.