SMA SOLAR TECHNOLOGY AG Company Presentation May, 2017
Disclaimer IMPORTANT LEGAL NOTICE This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, 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 or any part of 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. All information contained herein has been carefully prepared. Nevertheless, we do not guarantee its accuracy or completeness and nothing herein shall be construed to be a representation of such guarantee. The information contained in this presentation is subject to amendment, revision and updating. Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on the management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those in such statements as a result of, among others, factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements which speak only as of the date of this presentation. This presentation is for information purposes only and may not be further distributed or passed on to any party which is not the addressee of this presentation. No part of this presentation must be copied, reproduced or cited by the addressees hereof other than for the purpose for which it has been provided to the addressee. This document is not an offer of securities for sale in the United States of America. 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 ammended. 2
SMA IS THE GLOBAL NUMBER 1 IN SALES FOR THE LAST 2 DECADES
Two Decades of Market Leadership has a Name: SMA Accounts for 21% of Global PV Inverter Sales > There is NO global inverter market. Due to the local requirements and the wide range of applications 1 the inverter market is very fragmented. > SMA is the only global player with a complete portfolio in all segments. Therefore, SMA has the highest market share in sales for more than two decades. Revenue based Market Share 2 21% 21% 2015 2016 Inside CN 11% 10% 8% 9% 8% 8% 8% 8% 8% 6% > Some competitors mainly benefit from local market developments. The biggest Chinese solar inverter player only shipped inverters for 40m$ during the first nine months 2016 in international markets, while domestic sales accounted for 95% of its sales. SMA Comp. 1 Comp.2 GW based Market Share 2 Comp. 3 Comp. 4 Comp. 5 > Some other competitors benefit from little or no competition in certain PV applications (e.g. optimizer / micro-inverters). 15% 11% 10% 17% 14% 19% 15% > Some large conglomerates survived in the PV inverter business only because of cross-subsidization (e.g. with medium voltage technology). 3% 3% 6% 6% 6% SMA Comp. 1 Comp. 2 Comp. 3 Comp. 4 Comp. 5 Current export restrictions as well as compliance standards may impact the ability of Chinese competitors to serve international markets. 1.Optimizer, Residential, Commercial, Utility, Storage, Off-Grid, etc. 2.SMA: Inverter Revenues; Competitors: SMA Analysis based on Financial Reports of Companies, Public Information and Market Research Institutes; Calculation based on PV Inverter Market w/o Storage Applications as of SMA Market Model Q1 2017 4
SMA has a Sound Strategy in Place to Benefit from the Future Energy Market Design Positioning Strategic Goals 2020 Global Market Leader in all Segments We want to be #1in the RESIDENTIAL, COMMERCIAL, UTILITY, SERVICE and OFF-GRID & STORAGE segments SMA is a Provider of Systems and Solutions By 2020, sales of non-pv inverters are expected to rise from around 20% of total sales to > 40%. Sustainable Profitability and low Capital Intensity SMA strives for continuous efficiency improvements. If necessary, the profitability will be ensured by means of reductions in structural costs. Development of SMA by means of Disruptive Approaches SMA will invest in start-ups. SMA is an Attractive Company We live by our values and provide freedom for responsible entrepreneurial action. We stand out due to fairness, internationality and sustainability. SMA will become an integral part of the new energy market. 5
SMA HAS A MODERN AND COMPLETE PORTFOLIO FOR ALL SEGMENTS RESIDENTIAL COMMERCIAL UTILITY OFF-GRID & STORAGE MLPE SB 1.5/2.5 SB 3000-5000 STP 20000TL/ 25000TL STP 15000TL STP CORE 1 SUNNY CENTRAL CP XT SUNNY CENTRAL CP-JP SUNNY CENTRAL 2.2/2.5 MW SUNNY BOY STORAGE SUNNY HOME MANAGER SMA ENERGY METER STP 5000-12000 STP 75 SUNNY CENTRAL STORAGE SUNNY CENTRAL-US 1.85/2.2/2.5 MV STP 12-30 kw, IEC and US SUNNY ISLAND 6.0/8.0H SUNNY ISLAND 3.0/4.4M STP 5000-12000 + STORAGE SOLUTION COMMERCIAL SUNNY TRIPOWER 75 SMA Power Plant Controller SMA String Combiner/Monitor 6/12/36x MULTICLUSTER- BOX 6/1236 FUEL SAVE CONTROLLER SMA CLUSTER CONTROLLER SMA INVERTER MANAGER SMA INVERTER MANAGER GPM SCADA and Monitoring solutions Siemens gird connections on High- and Medium Voltage level SUNNY CENTRAL STORAGE 500/1000 SUNNY CENTRAL STORAGE 2200/2500 SUNNY HOME MANAGER SMA ENERGY METER SUNNY PLACES STP MV STATION SUNNY PORTAL SUNNY DESIGN MV POWER STATION STP MV STATION MV BLOCK SERVICE Extended Warranty Remote Service System Check Commissioning Extended Warranty Upgrade Operation & Maintenance Commissioning Extended Warranty Preventive Maintenance Operation & Maintenance Supplementary Services Extended Warranty Preventive Maintenance Commissioning SMA Company Presentation 6
SMA RESIDENTIAL 7
The New SUNNY BOY Family small light - secure Technical Data Power (kw AC /kva AC ) 3.0 5.0 DC-Voltage (V DC ) 125-600 AC Voltage (V AC ) 180 280 / 50Hz MPPT Range (V DC ) 125-500 MPPT Input Current (A) Efficiency (%) Weight (kg) 2 x 15A 97.2 (Max.) / 96.5 ( -euro) 15.8 kg Dimensions (mm) 435 x 470 x 176 (W x H x D) 1-phase, 2 x MMP trackers, 2 inputs per tracker, transformerless > Ready for SMART CONNECTED, the new SMA Service offering > Following the same reliable platform as the world s most successful sting inverter (SB TL-20/21) > Secure and Fast installation, with wireless commissioning and no need to open the inverter lid > Integrated Webserver for easy commissioning and local monitoring or via Sunny Places > Compact and light weight design (< 16 kg) > External WLAN antenna for outstanding communication quality > 5 year warranty with optional extension to 10 years Monitoring / Interfaces > Integrated WiFi Ethernet SMA Speedwire / Webconnect Modbus TCP with SunSpec & SMA Profiles 11
2. Smaller, Lighter, Simpler, Lower Cost >Compared to the Sunny Boy TL-21, the new Sunny Boy is: 40% Lighter (26kg 15.8kg) 30% Smaller (shorter, narrower, thinner) Lower cost >No opening of the lid for installation + Lower resulting component count means improved reliability >Simpler physical install via external DC, AC and communication connectors Smaller, lighter simpler means lower cost with greater reliability
4. Built-in Wifi >Built-in Wifi now standard >Connection to local wireless network & direct one-to-one connection (i.e. smartphone to inverter) >Home Owner can configure inverter Wifi connection to their wireless (here) >Customer-recognisable feature >Lower cost installation >Offer enhanced system monitoring capabilities to your customers >Monitoring WITH or WITHOUT internet Wifi for simplified communications, monitoring and commissioning
5. Built-in Audible Earth Fault Alarm >Audible buzzer built-in (~90dBA) >Only operates under when 4777.2 is selected, and only during an earth fault (not all faults) >Lowest cost earth fault solution through no additional components or setup >Earth fault via Sunny Portal still available >Simplified installation, suitable for ANY location Simplest & lowest cost solution for earth fault alarm, suitable for ANY installation
6. Compatible with Energy meter for direct Export control & consumption profile >Energy Meter can be DIRECTLY connected to the inverter to: Realise simple low-cost zero export (internet NOT required) Make the system battery ready (technically and for design validation) >Zero Export can be expanded to other SMA inverters (max. 3, with Webconnect) >Additional customer value with: Full consumption profile (Solar, Self-consupmtion, Exported & Grid supplied) Prepare for lowest cost battery storage using data to optimise system design Export control AND full generation & grid consumption through directly connecting Energy Meter
7. Faster installation >Compared to the Sunny Boy TL-21, the new Sunny Boy is ~30% faster to install >New features can avoid install location decisions >Simpler bracket for mounting (security lock screw or padlock) >All connections are external meaning no need to open the cover >WebUI commissioning via saved config file in seconds Simplified installation reduces time onsite, allowing installers to lower their costs
8. Better solution than Hybrid inverter >True battery ready solution with SMA AC-coupled storage >Greater grid independence and selfconsumption with AC-coupling >Allows flexibility of install location between Solar and Battery inverter >AC-coupling allows customer to take advantage of future developments in battery technology & products >Adding battery storage later can be as simple as Sunny Boy Storage + battery (if Energy Meter is already installed) >Equivalent to cost to quality hybrid inverter AC-coupling means customer can add storage, at the same or lower cost in future, with greater flexibility for both them and the installer
9. No Adjacent AC isolator >Only a main switch in the switchboard is required >Connection to the inverter is via an IP2X connector, hence under Clause 3.4.3 of AS4777.1, an additional adjacent means of isolation is not required. >Lower complexity and lower cost installation results in improved reliability for customer >Simplified installation and reduced install time 4.3 Isolation Switches. The isolating device shall not be located within the operational portion of the inverter, so that if the inverter needs to be removed from service, the isolation device remains in place. This requirement does not apply where a) the serviceable section is interlocked with the isolating device; b) all live parts are inside enclosures or behind barriers that provide a degree of protection of at least IPXXB or IP2X (i.e. all live parts are screened from touch); or c) all live parts are isolated automatically. Fewer system components, faster installation, lower cost and higher reliability
10. SMA Smart Connected better than a warranty, It s a performance guarantee >Better than a warranty and a phone number, this inverter comes with performance guarantee. >Smart Connected activated when customer registers system and their installer details during Sunny Portal activation. >SMA actively monitors customers system EVERY DAY & responds to correct issues. >If an issue arises with the system, SMA remotely diagnoses before advising the original installer. SMA pre-arrange replacement devices >Installer can then contact their customer, to advise of the fault and arrange when to visit
10. SMA Smart Connected better than a warranty, It s a performance guarantee >SMA Smart Connected means 1-Truck Roll for installers >Pro-active service interactions with their customers can help installers increase referrals and build new service business models >SMA Smart Connected helps protect the customer s investment in Solar better than a warranty >SMA Smart Connected can help installers differentiate themselves by offering Pro-active service at not additional cost to their business SMA Smart Connected - better than a warranty; secures a customers investment; helps installers grow their business through pro-active service and positive customer interactions
Summary - Key Features and Benefits 1. Designed and Developed by the same SMA team which deliver the Sunny Boy 3000-5000 TL (over 1 million installed worldwide) 2. Smaller, Lighter, Lower Cost, More Reliable World s most installed inverter with an upgrade! 3. Smart inverter display and monitoring on the customers smartphone 4. Built-in Wifi 5. Built-in Audible Earth Fault Alarm 6. Integrated Zero Export and customer usage data with only SMA Energy Meter 7. Faster and Simpler Installation 8. Better solution than a hybrid inverter, with greater flexibility at no extra cost 9. No adjacent AC isolator required 10. SMA Smart Connected for securing the customer s investment, and helping installers grow their business The new Sunny Boy is the perfect solution for customers and installers 18
SMA COMMERCIAL 19
SUNNY TRIPOWER CORE1 Stands on its own SMA Solar Technology AG
SUMMARY COMMERCIAL STORY Sunny Tripower CORE 1 is the world s first freestanding PV inverter for decentralized rooftops, covered parking spaces and ground-mount solar projects 1 2 As the 3 rd generation of SMA s industry leading Sunny Tripower product line, the CORE1 revolutionizes the commercial inverter category. Its innovative engineering approach is built on the foundation that a groundbreaking form factor is combined with an inventive mounting method. The goal is to speed up installation and achieve the most economical return on investment for all parties involved. 3 The result: Up to 60 % faster installation and cost-savings on all levels 21
THE CHANGING COMMERCIAL PV LANDSCAPE COMMERCIAL MARKET CHALLENGES Increased competition necessitates constant cost reductions in order to stay competitive New entrants offering bargain-priced inverters may seem like a reasonable way to build margin back into a declining system sales price These inferior inverters offer initial savings but higher replacement costs, and a lack of short- and long-term support will quickly erode those savings The latest addition to the Sunny Tripower family is a high-quality, larger (50 kw) string-inverter suitable for even the most challenging installations, resulting in: A lower cost per watt Fewer inverters per project Simple, expedited installation 22
Ideally suited for all commercial applications ROOFTOP CARPORT GROUND MOUNT 23
A complete power class lineup MOW POWER: POWER: 15,000 W 20,000 W 25,000 W 50,000 W Optimum flexibility with improved economics Availability: NOW Availability: Q2 2017 201 24
Key Product benefits HIGHLY INTEGRATED 1 2 COST SAVINGS & ECONOMICAL LOGISTICS THE LOWEST LCOE WITH REDUCED RISK 4 3 RAPID INSTALLATION AND SEAMLESS GRID INTEGRATION 25
Highly integrated Unmatched power density while integrating a wealth of value-adding features including: 12 direct string inputs for simple field labor Integrated AC 1 and DC disconnects reduce logistical complexity and balance-of-system costs Optional surge protection type 2 on AC and DC side increases safety Complete grid management capabilities Copper or aluminum conductors on AC side Optional modules for external sensors and power limitation by utility 1. for US only 26
COST SAVINGS & economical logistics Fewer balance-of-system components reduce system-wide logistical complexity Further labor cost reductions are achieved with optimized shipping concept and minimal racking structure Leading power density reduces stocking and shipping costs while simplifying transportation in the field Support feet are also to be shipped in packaging. Simplified two person handling into the final installed position. 27
Rapid installation and SEAMLESS grid integration Higher installation velocity Up to 60 % faster installation Needs no racking on roof-mount systems Six independent MPP trackers increase design flexibility while maximizing power production Superior configuration and communication Fast and easy set-up with Web-Assistant Browser access via Wi-Fi with all mobile devices Two Ethernet ports for fast communication in large plants with Modbus TM TCP (incl. SunSpec) support Advanced grid management features Certified for all global grid requirements New features including Active Power Reserve and Integrated Plant Control 2.0 28
THE LOWEST LCOE with Reduced Risk Unmatched power production Six independent MPP trackers ensure optimum energy production even in shading Its unique design allows for DC:AC ratios up to 150% Investment security Backed by the PV industry s #1 service team SMA's OptiCool TM intelligent temperature management system ensures reliable operation and maximum energy production in the most demanding conditions cooling The long-term experience and the proven SMA quality reduce business risks 29
Increased value for all stakeholders SUNNY TRIPOWER CORE1 FOR DISTRIBUTORS Product ordering, stocking and logistics have all been simplified thanks to the CORE1 s maximum level of integration. Additional cost savings are achieved with: One product for various commercial applications Global platform for universal deployment Reduced part numbers and balance-of-system components Unmatched support and service SUNNY TRIPOWER CORE1 FOR EPCS AND DEVELOPERS Procurement, installation and field labor costs must be reduced to maintain margins, so that s precisely what s driven the development of the CORE1. Benefit from: Plug-and-play installation concept Accelerated installation and decreased labor Reduced material costs Free system design tool SUNNY TRIPOWER CORE1 FOR SYSTEM OWNERS SMA understands that lifetime cost of ownership and uninterrupted performance are paramount among system owners. That s why the CORE1 delivers: The lowest LCOE 24/7 remote monitoring from the world s #1 service team Advanced customer monitoring interface Intelligent grid management 30
The new standard in commercial pv HIGHLY INTEGRATED Fewer components reduce complexity on every level SUNNY TRIPOWER CORE1 COST SAVINGS & ECONOMICAL LOGISTICS Reduces balance-of-system costs and speeds installation RAPID INSTALLATION and seamless GRID INTEGRATION Up to 60% faster installation saves time and money THE LOWEST LCOE WITH REDUCED RISK Get the best return on your PV investment 31
Thank you! Questions? www.sma.de SMA Solar Technology AG
SMA OFF-GRID/STORAGE 33
The New Sunny island-12 The most reliable all-rounder for On- and Off-Grid 28.03.2017, Nico Kreutzer, BUOGS
IDEALLY SUITED FOR on and off-grid Ongrid Offgrid Highly flexible battery inverter for single- and three phase systems. Combined with Multicluster System up to 300 kw. 35
Proven technology gets even more attractive Lower System Costs Up to 20% system-cost reduction 1 Reduction of installation costs Circuit board exchange in field* 2 Maximum reliability and flexibility Including 10 years warranty*** New communication integrated W-LAN and web user interface for configuration Direct integration into Sunny Portal/Sunny Places via Webconnect Extended local data logging** 3 IP54 for durable performance in harsh environment Extreme overload capacity One product for On-Grid, Backup and Off-grid Easier than ever before * under defined conditions, ** full version with automatic update, *** after registration 36
More integration, less costs Sunny Island -11 Sunny Island -12 37
MORE COMMUNICATIVE Webconnect Sophisticated visualisation on Smart Phone, Tablet via Sunny Portal or Sunny Places Integrated dynamic active PV-power control (0-100%) Offers cost effective system (No Sunny Remote Control, SWDMSI or SHM required) New extended data logging Data for end-user and professionals Logging intervals from second to day (incl. flight-recorder) Easy data-download per WEBUI Maximised transparency for systems without permanent internet connection 38
MAXIMUM RELIABILITY Now with 10 years warranty Warranty was increased by 5 years Cost-free warranty Requires only registration of the product Carefree long term operation IP54 and overload capability IP54 for durable performance in harsh environment Higher protection class than most of the competitors Unique overload capacity among Off-grid inverters As reliable as always 39
Complete system from one single source Perfectly matched components for fast realization and smooth operation. 40
Technical data At a glance Battery integration AC-Coupling Power (4.4M/6.0H/8.0H) 3.3kW/4.6kW/6.0kW DC-Voltage (Batt.) 48VDC (41 63 VDC) Communication WLAN, Speedwire Visualisation and configuration via WEB User Interface New Option: Cost-free lid colour Aluminium white (RAL 9006) 41
new attractive Pricing Sunny Island 4.4M 44% more power* 8% less costs Less installation time Sunny Island 8.0H 20% less costs Less installation time Immense cost reduction (SI-system-level) for SI4.4M, SI6.0H and SI8.0H. 42
Summary SYSTEM OWNERS 10 years warranty for carefree operation Easy system overview thanks to WEBUI with well organised panels (local monitoring) Sophisticated battery management and IP54 ensure long term faultless operation time Retrofitable backup-function with high overload capacity (typically 100%) INSTALLERS Immense price reduction Less components lead to shorter installation time Easy commissioning due to new Web user interface Compatibility to lead batteries and more than 20 different lithium ion batteries High quality support as Sunny Design or sophisticated planning guides Compatible to TOP battery manufactures like Mercedes and LG-Chem 43
SAVING ON QUALITY Can BECOME EXPENSIVE 44
1. PASSIVE COOLING ACTIVELY BURNS MONEY > Tests reveal that a passive cooling strategy dramatically reduces power output and PV component lifetime. > Insufficient cooling reduces lifetime by 75% > Passive cooling reduces profitability of PV systems > Typical Inverter ambient operating temperatures are in the range of 40-55 C SMA inverters would produce 50% more energy than the competitor inverter throughout the PV plant s operating life 45
2. Flexible DC:AC Ratio is essential for long term return on investment > Ever decreasing PV panel prices increases the financial pressure to maximise DC on the inverter > PV plants change their output throughout the year. > PV module will degrade ~20% throughout the operating life of a plant. DC:AC ratio limitation of 1:1 increases total inverter expenditure by 40% 46
3. Electromagnetic interference can stop a PV system in its tracks > EMI is possible whenever electricity flows > Mitigated according to standards to ensure devices don t stop others from working, or begin operating incorrectly due to absorbed radiation > Failure to comply can result in legal action and has financial implication for PV plants A PV plant emitting or absorbing EMC outside allowable ranges would be forced to shut down and cease energy production 47
4. A SOLAR POWER PLANT needs to be able to handle time in the sun > It should go without saying, but solar systems need to operate in the sun > The more sun a PV plant receives, the more energy it can be capable of producing > Electronic components are temperature sensitive, which means if they are allowed to heat up too much, their operation performance will be diminished SMA inverter on the other hand continue to output 100% power output even at 50 C 48
You can Trust an ROI from a PV system when it s running on SMA inverters
SOCIAL MEDIA www.sma.de/newsroom
BACKUP PUBLIC COMPETITORS ANALYSIS HUAWEI S INVERTERS ARE NOT COMPLIANT HAVE A 75% SHORTER LIFE-TIME START DERATING ALREADY AT 21 CELSIUS HUAWEI S INVERTER PRICES ARE STILL TOO HIGH