Managing Board of SMA Solar Technology AG (SMA/FWB: S92) informed its business partners at the SMA suppliers day yesterday about the company's current economic situation and the positive support of major trade credit insurers during the transformation.
"In recent weeks, we have spoken with all of the major trade credit insurance companies about SMA's restructuring. All those taking part in the talks have acknowledged SMA's unique selling propositions in the global photovoltaic market and understood the proposed measures. The major trade insurers Euler/Hermes, Coface and Atradius thus granted insurance lines for business with SMA. This is a very good result, and it was received by the suppliers in attendance in a correspondingly positive way," said SMA Chief Executive Officer Pierre-Pascal Urbon.
The Company also used the event to present the global purchasing strategy, the partnership with Danfoss for volume bundling and new logistics concepts in order to increase flexibility and reduce inventories. "Thanks to the modular design of the new generation of inverters and further standardization measures, SMA can make optimum use of the global purchasing strategy and achieve volume effects, which will lead to sustainable cost reductions. Over the next two years, the partnership with Danfoss offers additional potential savings of material costs," explained Mark Grosse, Head of Global Procurement at SMA. External cooperation will become an important part of the SMA strategy in the future. For this reason, innovations in key technological areas will be promoted together with selected technology partners to create sustainable competitive advantages. In addition, SMA wants to work even more closely with its suppliers in the future and give them more precise demand forecasts in order to create added value and reduce inventories along the entire supply chain together.
The strategy for SMA's transformation also convinced more than 80 participants at the suppliers day. SMA's management presented specific measures for all corporate areas to cut fixed costs by more than €160 million. In addition to a substantial adjustment of the corporate structure in Germany and abroad, the plan includes, among others, the focus on strategically important development projects, the reduction of the real net output ratio and the consolidation of the global infrastructure.
Disclaimer:
This press release serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell 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 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. 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 amended.
This press release can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.
"In recent weeks, we have spoken with all of the major trade credit insurance companies about SMA's restructuring. All those taking part in the talks have acknowledged SMA's unique selling propositions in the global photovoltaic market and understood the proposed measures. The major trade insurers Euler/Hermes, Coface and Atradius thus granted insurance lines for business with SMA. This is a very good result, and it was received by the suppliers in attendance in a correspondingly positive way," said SMA Chief Executive Officer Pierre-Pascal Urbon.
The Company also used the event to present the global purchasing strategy, the partnership with Danfoss for volume bundling and new logistics concepts in order to increase flexibility and reduce inventories. "Thanks to the modular design of the new generation of inverters and further standardization measures, SMA can make optimum use of the global purchasing strategy and achieve volume effects, which will lead to sustainable cost reductions. Over the next two years, the partnership with Danfoss offers additional potential savings of material costs," explained Mark Grosse, Head of Global Procurement at SMA. External cooperation will become an important part of the SMA strategy in the future. For this reason, innovations in key technological areas will be promoted together with selected technology partners to create sustainable competitive advantages. In addition, SMA wants to work even more closely with its suppliers in the future and give them more precise demand forecasts in order to create added value and reduce inventories along the entire supply chain together.
The strategy for SMA's transformation also convinced more than 80 participants at the suppliers day. SMA's management presented specific measures for all corporate areas to cut fixed costs by more than €160 million. In addition to a substantial adjustment of the corporate structure in Germany and abroad, the plan includes, among others, the focus on strategically important development projects, the reduction of the real net output ratio and the consolidation of the global infrastructure.
Disclaimer:
This press release serves only as information and does not constitute an offer or invitation to subscribe for, acquire, hold or sell 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 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. 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 amended.
This press release can contain future-oriented statements. Future-oriented statements are statements which do not describe facts of the past. They also include statements about our assumptions and expectations. These statements are based on plans, estimations and forecasts which the Managing Board of SMA Solar Technology AG (SMA or company) has available at this time. Future-oriented statements are therefore only valid on the day on which they are made. Future-oriented statements by nature contain risks and elements of uncertainty. Various known and unknown risks, uncertainties and other factors can lead to considerable differences between the actual results, the financial position, the development or the performance of the corporation and the estimates given here. These factors include those which SMA has discussed in published reports. These reports are available on the SMA website at www.SMA.de. The company accepts no obligation whatsoever to update these future-oriented statements or to adjust them to future events or developments.
