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Edited Transcript of S92.DE earnings conference call or presentation 26-Mar-20 8:00am GMT

Full Year 2019 SMA Solar Technology AG Earnings Call

Apr 3, 2020 (Thomson StreetEvents) -- Edited Transcript of SMA Solar Technology AG earnings conference call or presentation Thursday, March 26, 2020 at 8:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Ulrich Hadding

SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board

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Conference Call Participants

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* Jeffrey David Osborne

Cowen and Company, LLC, Research Division - MD & Senior Research Analyst

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Presentation

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Operator [1]

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Good day, and welcome to the analyst/investor presentation financial report full year 2019. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Ulrich Hadding. Please go ahead, sir.

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [2]

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Thank you, Tracy, and welcome, everyone. We very much appreciate your taking the time for this investor and analyst call on the final results of 2019. You can find today's presentation on our investor relations website, ir.sma.de. This conference call is scheduled for 60 minutes. The replay of the recording will be available for 7 working days. After the presentation, I will be happy to answer any questions you might have.

Different to the last quarterly presentations, today, I will start with a full review of the 2019 financials before presenting you the necessary information to assess SMA's future prospects. At the end, I will give an outlook on the full year 2020. I refer to our disclaimer on Page 2.

And here on Page 4, you find a summary of the key financials for 2019. As I will provide you with more details on our sales, profitability, balance sheet and cash flow on the next slide, here on this page, I only would like to highlight that, as you can see in the table on the bottom right corner, our sales and EBITDA increased significantly in the second half of 2019, which also established a level of performance that we expect to maintain and even exceed in 2020.

Now let's please turn to the next slide, and I will provide you with insights regarding our sales performance. In 2019, SMA made a strong turnaround after a very difficult year 2018. We grew the top line by 35% in terms of nominal inverter capacity sold and increased revenues by 20% to reach EUR 915 million. All segments increased sales in 2019 with Large Scale & Project Solutions and Home Solutions, achieving strong double digit growth. From a geographical point of view, EMEA delivered a good performance, growing by 28% and remaining SMA's strongest region with EUR 474 million of revenues, representing 51% of our total sales.

In EMEA, all segments grew sales by double digits and exceeded our internal targets of 2019. Within this region, Germany and Benelux countries contributed the highest revenues and grew by high double digits.

Our Asia Pacific region represented 26% or EUR 244 million of SMA's total sales and, despite a decline in sales compared to 2018, remained our second largest region. Within the APAC region, Australia was SMA's largest market again in 2019, followed by Japan and South Korea.

Coming now to Americas, where we generated 23% or EUR 219 million of SMA's total sales, and thanks to a very strong second half of 2019, especially in the Large Scale business, was able to increase sales by 47% compared to prior year. In addition, we were able to successfully build up our order backlog with our project pipeline, which helped secure a good level of revenues for 2020.

In summary, EMEA performed well consistently throughout the year in 2019. Americas regained market share in the utilities segment with strong Large Scale revenues. APAC experienced a decline in revenues compared to 2018, mainly in Australia and Japan.

Let's now have a look on the sales per segment. You see them on the right side of the slide. And as you can see, the revenues of all our segments increased compared to 2018. As mentioned earlier, our Home Solutions segment performed well throughout 2019 and achieved 28% higher sales compared to 2018, reaching EUR 240 million. Germany, Benelux and U.S.A. delivered the highest revenues and strong sales growth for the segment.

Our Business Solutions segment also delivered slight growth despite moderate price erosion. Germany and U.S.A. were top markets for this segment as well, while South Korea achieved double-digit sales growth and became our third biggest market for this segment.

Finally, our Large Scale & Project Solutions business had a very strong second half of the year and finished with revenues of EUR 379 million, which is a substantial increase of 33% compared to 2018. Performance was especially impressive in U.S.A. and Germany, with both countries delivering strong double-digit sales growth in our large scale business. The higher sales growth was achieved despite high price erosion in this segment.

Before I show you what this positive development in sales did to the profitability, I want to present how we performed on our restructuring and saving efforts in 2019. So to say, our homework that we had to do, at -- those are of even importance for the bottom line as sales are.

In 2019, our cost-saving program delivered on its total savings target. Several initiatives [helped] achieve their goals and could compensate for a few initiatives, which did not fully meet the expectations. As already reported during the year, we successfully consolidated our production and R&D sites by concluding the sale of our Chinese subsidiaries. This contributed significantly to our headcount reduction and increased our ability to adapt to rapidly changing market conditions. In addition, we made good progress in outsourcing noncore activities and automating processes. And we achieved key milestones in our endeavor to further reduce our product platforms. In 2020, we will continue to streamline SMA's product portfolio and work further to simplify our processes and increase cost efficiencies. In summary, our cost savings program delivered as planned in 2019 and remains on track to deliver our higher savings targets for 2020 and beyond.

Profitability. In 2019, SMA generated an EBITDA of EUR 34 million and an EBITDA margin of 4%. The EBITDA significantly improved compared to 2018, thanks to higher sales and the savings from our restructuring program. Nonetheless, profitability did not quite meet our expectations. This was mainly due to: first, a high proportion of low-margin products in our sales; and second, costs related to supplier quality issues in our Large Scale business. As mentioned earlier, streamlining the product portfolio was part of our restructuring program, but we did not fully meet the targeted level of savings here. As such, low-margin products represented a higher share of our sales than expected. With respect to the supplier quality issues, I will not disclose details, but I can tell you that SMA would have achieved a positive net result in 2019 without this effect, and that we are in discussions with the supplier regarding compensation.

Depreciation. In contrast to 2018, which included significant one-offs in depreciation, for 2019, there were no unplanned depreciations or asset impairments. And with regard to extraordinary effects, there were several smaller positive and negative extraordinary effects, which were almost balanced.

Let's now have a look on the segments in detail. Home Solutions. EBIT in the Home Solutions segment was positive with EUR 2 million, driven by the strong sales increase in 2019. This segment was negatively affected by the update of the parameters for the general warranty accruals calculation in 2019, which led to a onetime increase of warranty accruals of EUR 2 million for the Home Solutions segment. EBIT in the Business Solutions segment slightly improved compared to 2018, but remained negative with minus EUR 7 million, mainly due to moderate price decline, unfavorable product mix and a onetime negative effect of EUR 5 million from the update of the general warranty accruals calculation. The Large Scale & Project Solutions segment also improved its profitability significantly compared to 2018, but remained in the red in 2019. Despite strong sales growth, this segment suffered from high price decline and, as mentioned earlier, costs related to supplier quality issues. These negative effects were partially offset by a positive effect of EUR 7 million from the update of the general warranty accrual parameters in the Large Scale segment.

Now I will move on to the balance sheet and net working capital. We began the year with a net working capital balance of EUR 177 million and a net working capital ratio of 23% per end of 2018. Over the course of 2019, SMA's net working capital increased steadily from quarter to quarter, mainly due to buildup of inventories needed to fulfill our high order backlog. At year-end, you can see that our net working capital decreased and our sales increased significantly in the second half of the year. Now our measures to improve AR collection and optimize inventory levels did positively contribute to lowering our net working capital balance at the end of 2019. But I also have to share with you that SMA benefited from onetime effect at year-end, which we do not expect to see regularly in our business, especially the high advanced payments here to be mentioned. Hence, our net working capital ratio of 17.4% at the end of 2019 would, without these onetime effects, be on a level more comparable to the net working capital ratios reported at the end of the previous 3 quarters of 2019.

Going more into detail, you'll see that finished goods and raw materials inventories were on a high level at the end of '19, increasing in total by EUR 86 million. This is mainly stocks needed to fulfill the higher level of orders in our Large Scale business and related to the buildup of raw material stocks to derisk our supply chain in case of capacity constraints at our suppliers. Trade receivables increased significantly from EUR 100 million at the end of 2018 to EUR 145 million at the end of last year. This was simply a result of a significantly higher level of sales last year. And if you look at our day sales outstanding, we improved our AR management significantly compared to 2018. Trade payables of EUR 175 million at the end of 2019 were on a very high level, largely due to the ramp-up of material purchasing late last year to ensure our ability to deliver on our high order backlog. Advanced payments from our customers were extraordinarily high at the end of '19, mainly related to a key project in our Large Scale segment.

Now let's have a look on the group balance sheet. In the balance sheet, the most noteworthy changes since the beginning of 2019 are related to the sale of our Chinese subsidiaries, the implementation of IFRS 16 and the development of the net working capital positions, as just explained. Noncurrent assets increased by 5% and ended up at EUR 299 million at the end of our last year. The increase is mainly from the implementation of the new IFRS standard #16, which requires companies to show financial leases in their balance sheet. For SMA, the balance of leased assets at the end of 2019 was EUR 19 million. The total cash decreased slightly from EUR 324 million at the end of '18 to EUR 318 million at the end of 2019. I will walk you through the cash flow in a minute.

Shareholders' equity decreased from EUR 424 million to EUR 417 million as a result of a negative net result in 2019. Due to the decrease and a substantial short-term increase in our total assets, driven by the onetime effects in our net working capital, which I explained earlier, our equity ratio decreased to 37.6% at the end of 2019. Without these onetime net working capital effects in our balance sheet total, our equity ratio would have been close to 40%.

Let's now turn to our cash flow profile on the next slide. After our terrible year in 2018, where SMA generated a negative cash flow from operating activities of minus EUR 54 million. In 2019, SMA nearly achieved breakeven cash flow from operating activities. And as you can see, SMA generated positive gross cash flows of EUR 31 million in 2019 and invested into building up our inventories to help ensure that we can supply our customers' orders, which increased significantly during '19. Furthermore, by prioritizing investment projects, we were able to decrease our capital expenditures in 2019 as compared to the previous year. So in summary, SMA significantly improved its cash management in 2019, generating positive gross cash flows and nearly achieving breakeven in cash flows from operating activities.

This concludes a detailed review of our 2019 financials. Let me briefly summarize the key figures for you. SMA grew revenues by 20% to EUR 915 million with very strong sales growth in our Large Scale & Project Solutions segment as well as our Home Solutions segment. Our EBITDA improved significantly compared to 2018, reaching EUR 34 million in '19, mainly driven by higher sales and restructuring savings, which were delivered in line with plan. Profitability did not fully meet our expectations, but this was mainly due to high-quality costs, which SMA covered that were related to issues from a supplier's component in our Large Scale segment. Without this effect, SMA's results would have been in the black in 2019. Our balance sheet remains solid with an equity ratio of 38% and net cash balance of more than EUR 300 million and a credit facility of EUR 100 million. Our debt-to-equity ratio of 1.66 also confirms our sound financial position.

I now turn to the markets and competition part of the presentation. As economic and market developments are currently extremely dynamic and heavily influenced by political decisions because of the global corona crisis, short-term market development is not predictable. Therefore, we haven't changed our market estimates since our Capital Markets Day in February. We will, however, analyze the further developments and present an updated market view at our Q1 analyst call on May 14.

So here on this slide, you see the market development in gigawatt. While the corona crisis will most likely take a toll at the development over the coming months, we expect markets to recover soon afterwards. Growth will come from all regions, but especially from EMEA, with around 15% annual growth in the medium term. Germany is among the major markets in this region. Strongest markets in APAC remain India, Japan and Australia. India is striving to reach its target of PV installations of 100 gigawatt. By the end of 2019, only 1/3 of this capacity was installed. Australia also has ambitious targets for large scale and small scale PV power plants.

In the Americas region, next to further growth in the U.S., we also see positive impulses coming from Latin American countries, such as Brazil, Mexico, Argentina, Colombia and Chile. Regarding segments, we see more installations in the Utility segment as the Commercial and Residential segments together, and this segment is set to grow further. Utility is more and more driven by tenders to which many countries turn in order to secure a sustainable and cost-efficient electricity supply. If we look at the market in euro terms, the split is a bit different, which we will see on the next slide. Here you see the expected market development of our core business PV inverters, excluding influences of the corona crisis in euros. We expect a rather stable global market development because of the price decline in all segments and all regions. However, the good thing is that we expect price decline to ease off to 1-digit percentages over the next year. As prices are lower in the utility segment, this segment makes less than half of the global market in euros.

Let's turn to the next slide which shows the whole addressable market for SMA. As the transition to a decentralized energy supply based on renewable energies proceeds globally, storage and digital energy services become ever more important. This transition also drives the further growth of O&M services for utility power plants. In addition to our core PV inverter business, SMA is very well positioned in these segments and will be able to profit from the expected growth. We estimate the annual growth rate for the whole market addressable by SMA until 2022 at 4%.

On the next slide, we show you our long-term market outlook, which remains very strong, and we expect annual growth of 10% over the next 10 years. Main drivers here are digitalization and electrification of additional sectors such as heating and mobility as well as green hydrogen. Electricity will become the main energy source in a world with growing energy consumption and PV will become the main electricity source as it is not only cost efficient and produced close to consumption, but also sustainable and climate friendly. These aspects will gain importance over the coming years as the majority of people, businesses, organizations and politicians around the world see the urgent need to implement effective measures against climate change, which brings me to SMA's positioning.

Since inception back in 1981, doing business in a sustainable way has been a core value for SMA and its employees, whereas most of our competitors are of the opinion that it is enough to sell technology for the production of renewable energy, no matter how these products are manufactured. We are convinced that real sustainability goes far beyond. This is why we began early on to implement sustainability measures in all areas of the company. For example, we have installed our first company-owned PV plant at our headquarters back in 2001. Over the years, our own PV capacity has grown rapidly so that today, we can cover 38% of our energy consumption in Germany with self-produced solar energy. And of course, the remaining energy used is also renewable.

In addition, we are constantly reducing our overall energy consumption, which we measure in energy use per kilowatt inverter power. Over the last 4 years alone, the energy used to produce 1 kilowatt inverter power has decreased by 63%. As we take sustainability very seriously, we give 100% transparency to our stakeholders with our sustainability reporting based on the global reporting initiative standards. You will find our nonfinancial statement for 2019 on pages 35 to 46 of the Annual Financial Report.

With our sustainably produced portfolio of products, services and software, we always have the whole energy system in view as well as the needs of our customers who are looking for fully integrated, dedicated solutions that fit seamlessly in today's and tomorrow's energy supply system. Components are still our core business, but those not only include PV inverters, but also battery technology, communication devices, et cetera. The main aspect here is that we integrate all functionalities that our customers need from effective shape management to free inverter monitoring into our devices. This is good for our customers and for the environment as it saves material, energy and cost and makes the PV plants safer and more reliable. We complement our component offering by extensive services such as plant monitoring, PV planning, grid integration, including grid studies, commissioning, et cetera. With the services, we support our customers over the whole lifetime of their PV plans as a reliable long-term partner on which they can always count.

On top of this come software and digital energy services, which will grow in importance and become a significant revenue stream over the coming years as digitalization and the energy transition will gain speed. This is why we use our own digital abilities to foster start-ups in these future fields, as you can see on the next slide. With our start-ups in the field of digital energy services, EV charging and e-commerce will reach new customer groups that are beyond our reach and develop new business fields. Our subsidiary, coneva, focuses on digital energy services for companies and white label end customer solutions for utilities. The business was founded 2 years ago and developed nicely as planned, with several projects already started.

We founded the joint venture, elexon, together with 2 Germany-based companies in the middle of last year. The company develops intelligent charging solutions for company fleets. Our subsidiary emerce was also founded 2 years ago. They develop automated processes for us to sell our service products online and provide online marketing platforms for SMA and our partners in developing PV markets where we don't have a sales force on the ground. Another important future business field in which SMA has already established itself very well is battery storage technology, which you will see on the next slide.

Here on the left-hand side, you see the estimated global storage market growth as estimated by Bloomberg New Energy Finance. As battery storage systems make renewable energies available 24/7 and enable them to substantially contribute to grid stabilization, battery storage will be an important pillar of the future energy supply system and thus grow exponentially. SMA has developed battery storage system technology for more than 2 decades now and has unrivaled experience and expertise in this field, offering comprehensive solutions for all segments and applications, usable either in combination with or without PV, thereby opening up new customer groups to us. With these solutions, SMA has been the global market leader for battery storage system technology for several years now. In 2019 alone, we have signed contracts for the delivery of more than 1 gigawatt of battery inverter capacity, thereby tripling the capacity sold in 2018.

With sales and service companies in 18 countries on all continents, we serve customers in more than 190 countries around the world. As we started off in Europe, with Germany having been the forerunner of renewable energies, most of our installed capacity is located in the EMEA region. But as you can see, we have made good progress in APAC and the Americas as well. And these regions will also grow in the coming years with our sales and service forces on the ground. This global footprint makes us fairly independent of the development of individual markets.

Another important factor here is that we have our state-of-the-art and CO2-neutral inverter production facilities concentrated at our headquarters in Germany, where we can make optimal use of our development, production and capacities -- testing capacities.

Now I would like to share our outlook and guidance for 2020 with you, starting with our order backlog. Looking at the right side of this slide, you can see that we significantly grew our order backlog in the first half of 2019 and maintained the high level of order backlog in the second half of last year. After very strong revenues in Q4 2019, our backlog decreased slightly. But as you can see, by end of February 2020, we generated a high amount of new incoming orders so that product order backlog is above EUR 400 million again, and our service order backlog has also increased significantly with EUR 420 million at the end of February. As you can see on the left side of this page, our Large Scale & Project Solutions pipeline remains on a high level, and a large part of our orders are from Americas and EMEA. With the strong revenues and order backlog we experienced in 2020, we can confirm that more than 50% of our guided sales figures for 2020 are already covered by our year-to-date revenues and the current product order backlog. Actually, it is more like 2/3 of our sales guidance if you took its lower end as reference point.

Speaking about guidance. Q1 of 2020 has started strong so far for SMA, and our business has not been significantly affected by the COVID-19 situation until now. For the first quarter of 2020, the Board expects sales in a range between EUR 275 million and EUR 285 million and an EBITDA between EUR 12 million and EUR 15 million. We then expect the second quarter to show weaker demand and sales with the market catching up in the second half of 2020. Therefore, the SMA managing board confirms its sales and profitability guidance for the whole year 2020 as announced in early February this year. We expect revenues between EUR 1 billion and EUR 1.1 billion and an EBITDA between EUR 50 million and EUR 80 million.

As explained during our Capital Markets Day in February, the growth in sales is substantiated by our high order backlog and level of incoming orders since early 2019 as well as our effective positioning in the market. Profitability will continue to improve, driven by higher sales, additional savings and productivity gains from our cost savings program as well as from an increased focus on lowering quality costs.

As mentioned until now, the COVID-19 has not materially affected SMA's business. We continue to produce, all our facilities are running, most of them 3 shifts, and working from home has not been a challenge to our well-trained and equipped and foremost passionate employees. Also, order intake remains on a good level. We have, as nearly all other companies, experienced some delays in our supply chain, but so far, this has not affected our ability to supply our customers. Of course, we cannot foresee further developments and, accordingly, do not exclude the situation to deteriorate. But based on today's data and intelligence, we uphold our 2020 sales and earnings guidance.

Let's turn to the last slide. To sum up, why investment in SMA is worthwhile. The real sustainability will become a significant topic for important stakeholder groups. SMA's sustainability has been proven since the company's inception. Part of this sustainability are also our financial stability and our focus on a sustainable energy supply based on PV. With our comprehensive portfolio for all segments and applications, and our global sales and service infrastructure, we can serve all customer groups around the world, and thus, profit from the whole potential of the global energy transition. This is why if you trust solar, there is no way around SMA.

Now I'm happy to take your questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) We will now take our first question from Jeff Osborne from Cowen and Company.

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Jeffrey David Osborne, Cowen and Company, LLC, Research Division - MD & Senior Research Analyst [2]

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A couple of questions on my end, if you don't mind. I was hoping you could address -- I understand in terms of your production for the COVID-19 outbreak and the suppliers. That was a very helpful detail. What are you hearing from your customers, in particular, on the large-scale projects? Are you seeing any potential delays in construction of projects or permitting in the Americas region or in Europe?

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [3]

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Well, thanks, Jeff, and thanks for getting up that early to participate in this call. From the customer side, there are just a few messages so far with regard to large projects. There has -- have been no push-outs so far, which actually doesn't mean anything because it's -- I think it's still too early to really assess the impact. But so far, there has been no push-outs. With regard to the smaller business, meaning the -- our Home and Business Solutions segments, there has been discussions with customers about delay in deliveries, but only on a minor scale. So let's say, about 4 weeks, let's push out some deliveries about 4 weeks because we have difficulties in supply chain, of that magnitude we have seen some signs. That's the reason why we think that Q2 will see somewhat lower sales, but we all expect -- and that is also true for most of our customers. We see the market catching up in Q3, Q4.

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Jeffrey David Osborne, Cowen and Company, LLC, Research Division - MD & Senior Research Analyst [4]

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Got it. That's helpful. And then maybe just a few more questions, if you don't mind. Can you disclose -- it might be buried in the annual report as well, but can you disclose what the impact of safe harboring was for 2019 results? You highlighted in the working capital the advanced cash payments and that there could be some upside to revenue. Is there any way you can provide the magnitude of what that was?

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [5]

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Well, I refer to this very large single order that we had in 2019. That is due to safe harboring, and almost all our energy was diverted to this one very big order. But this is being realized in 2019 and in 2020. So the major impact will be for 2020 as we are delivering those inverters as we speak, and we'll have a very large revenues in March. In 2019, the impact was more on the net working capital side than on the revenue side. The major impact, as you have seen, was with regard to these very high advanced payments that we received. But on the revenue side, we only had a smaller part of safe harboring. So no 2-digit million revenues.

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Jeffrey David Osborne, Cowen and Company, LLC, Research Division - MD & Senior Research Analyst [6]

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Okay. And then any commentary on -- that you can provide on the attach rate of storage in terms of expectations for 2020, in particular, for the Home and business segment or Utility? But any thoughts on the 3 main segments would be helpful.

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [7]

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Yes. The attach rate is different in the 3 segments, of course. In Home, we see, especially here in Germany, an attach rate which is even -- which is exceeding 50%, about 60% attach rate in Germany. Other countries, we see not the same level, but we see the level rising. In business, this is a little bit different. There is -- these are very individual circumstances under which a battery installation actually takes place and only to a very small degree. In the Utility business, our battery business is, let's say, split in many different segments or fractions. There are a lot of battery activities which are non-PV activities, where Utility just wants to have a backup installation and asks us to install that. And in many other situations, we also have hybrid solutions, for instance. So there it is difficult to name any attach rate to the business as such. But the overall expectation for our battery -- our Storage business as such is, of course, positive. So we had about EUR 60 million of that business in 2019, and we see that rising to the very high 2-digit million level in '20.

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Jeffrey David Osborne, Cowen and Company, LLC, Research Division - MD & Senior Research Analyst [8]

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I missed that. What was the EUR 60 million that you referenced, that was the Home business?

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [9]

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Storage business in '19, about EUR 60 million. And we see that rising till the end of 2-digit million.

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Jeffrey David Osborne, Cowen and Company, LLC, Research Division - MD & Senior Research Analyst [10]

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Okay. The last question I had for you was just on the repowering. Can you just talk about that? Certainly, a year ago, you were pretty positive about the potential there. My sense is that it was a bit slow to develop. But what's your outlook for 2020 and 2021 in terms of the older systems out there in repowering?

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [11]

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Your perception is fully correct. It didn't unfold as we hoped for. But we will now see several positive momentums due to the fact that the first installations are coming near the end of their subsidy time line, meaning they are 20 years old. And especially in this area, we are, let's say, offering some bundles and the combination of hardware, software and services, which shall be very attractive to installation owners who just want -- do not want to dismantle their facility as it is still running. The -- I'm careful to make any projections because it is still very, very small scale and, therefore, it's difficult to predict how it's going to unfold. But we are not going or walking away from that business. We see, especially, SMA very well positioned to take positive effect from that.

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Operator [12]

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(Operator Instructions) There appears to be no further questions at this time. I'd like to turn the conference back to the host for any additional or closing remarks.

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Ulrich Hadding, SMA Solar Technology AG - Head of Finance, HR & Legal, Labor Director and Member of Management Board [13]

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Ladies and gentlemen, thank you very much for joining us on this call in this very, very busy times. I really appreciate that. I wish you all the best and keep thinking of SMA. It's really -- the point in time has come. Thank you. Have a very great day.

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Operator [14]

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This concludes today's call. Thank you for your participation, ladies and gentlemen. You may now disconnect.