[First Half 2002] Interim Report SolarWorld AG

Transcription

1 [First Half 2002] Interim Report SolarWorld AG WKN

2 [2002] Dipl.- Ing. Frank H. Asbeck, Spokesman of the Board of SolarWorld AG With its strategy of integrating all stages of the value chain SolarWorld is well prepared for the future. In practice this means: Making a profit at all stages with the possibility of cushioning the blow in the event of major changes. (Frank H. Asbeck) The detailed version of this interim report is also available in German. The interim report can be downloaded as a pdf file from the Internet under You can also have these documents mailed to you by: SolarWorld AG Investor Relations Department Kurt-Schumacher-Straße Bonn Tel.: Fax: or via placement@solarworld.de Published by: SolarWorld AG, Kurt-Schumacher-Straße 12-14, Bonn Contact: Investor Relations Department, Tel.: Internet: 2

3 [Interim Report 2002] I. Strategy, Strength, Position In the first half of the year 2002 the Solar- World AG group of companies generated a sound result. Group sales reached 48.6 million EUR exceeding the previous year s figure by more than 50 per cent. Earnings before interest and tax (EBIT) amounted to 2.18 million EUR and the pre-tax earnings of the group (EBT) to 1.24 million EUR. In parallel to this very sound business development in the reporting period under review the group significantly advanced its strategy of combining all the stages of the value chain of the photovoltaic business under one roof as the first and only company in the world. In the first stage of added value creation the provision of silicon as the input material in the PV industry the SolarWorld group laid the foundation for entry into the raw material supply side of the business in two ways in the first half of 2002: Both by way of the Joint Venture with Degussa AG established in May 2002 for the production of solar grade silicon and as a result of its entry into the recycling of used solar products the SolarWorld group has established itself in an important production stage of the solar industry. In order to pool the solar value chain completely under one roof SolarWorld AG also acquired the outstanding minority shares of the solar subsidiaries Gällivare PhotoVoltaic AB (GPV)/Sweden and Deutsche Solar AG/ Freiberg in the course of the period under review. 3

4 [2002] With these new activities the SolarWorld AG group is now represented in all processes of added value creation in the solar industry from raw material preparation via the production of wafers, cells and modules all the way to the construction and sale of complete solar power stations. Against this backdrop the SolarWorld group considers itself excellently prepared and positioned for the future in worldwide growth market for solar power generation. In order to be able to dedicate its full attention to this expansion SolarWorld AG sold its complete stake in WindWelt AG after the period under review thus generating additional liquidity and concentrating its activities on the solar core business. II. Clean Energies for a Clean World Renewable energies: Climate protection creates jobs Modern societies and national economies have been thinking and debating about the right form of energy systems for more than 25 years. Since the seventies of the last century the ecological compatibility of industrial production and processing methods the environment has increasingly been called into question. With renewable energies we have come to a point where any turning back would constitute a serious mistake in terms of economic and environmental policy. (Frank H. Asbeck) We act and invest locally but think globally. That keeps us at the top. (Frank H. Asbeck) To strengthen the global positioning of the group SolarWorld AG has consistently expanded its international sales and distribution activities. Because it is only if you are internationally present in all areas of added value creation that you can lastingly maintain a position among the world s leading solar companies. By building up a powerful international sales force and a network of strong international partners SolarWorld AG is laying the foundation for a solar business that will be significantly more strongly characterized by international trade. Today, there are hardly any serious doubts that the earth s climate reacts to these economic activities. For example, the leading German climate research institute, the Max Planck Institute for Meteorology in Hamburg, pointed out that the major share of the temperature increase on the earth s surface of 0.6 C since 1860 is with a high degree of probability attributable to human activities, above all the emission of greenhouse gases like for example carbon dioxide, (Source: press release of the Max Planck Institute for Meteorology: Global Warming Most Probably Manmade, 7 June 2001). The series of weather disasters in the summer of 2002 including the storms of the century raging in Germany recently were also the expression of this global warming according to the Hamburg climate researchers. The institute concluded in July 2002 that it would be less expensive to accelerate the development of renewable energies than to regularly pay the cost of the economic damage done 4

5 [Interim Report 2002] by storms and other weather disasters in the decades ahead. The current catastrophic floods in all parts of the world seem to be a dramatic confirmation of this. A further modification of the energy system is necessary to counteract the threatening increase in global warming. Nuclear energy, because of its high risk potential to man and nature, does not constitute a viable alternative in this context. This is why, in the years and decades to come, renewable energies will become the most important sources for worldwide supply of energy. In the EU, incidentally, there is a general consensus on the objective of further expanding the use of clean energy sources substantiated by appropriate agreements. In Germany renewable energies have been promoted since the year 2000 by, among other things, the German law on renewable energies (German acronym: EEG) that guarantees a costoriented compensation for feeding clean electricity into the public grid. As the Federal Government explained in its experience report on the EEG law published at the end of June 2002 the share of renewable energies in total electricity consumption increased from 5.2 per cent in 1998 to just under 7.5 per cent in the year It is safe to assume that in August 2002 the 8 per cent mark will be exceeded. In theory this would be sufficient to supply the major cities of Berlin, Munich and Stuttgart completely with renewable energy. In 2002 alone a city of the size of Cologne will be added. The number of jobs in the industry has doubled to 120,000 from 1998 to the middle of This means more people are employed in the renewable energy industry than in the nuclear and coal industries taken together. Technology leadership Made in Germany secures competitive advantages and thus new jobs. SolarWorld AG is heavily involved in this. (Frank H. Asbeck) The climate effects of clean energies are also impressive. In the year 2001 alone, the government s experience report says, they helped to avoid not only air pollutants but also 35 million tons of greenhouse gases. The actual incremental costs triggered by the EEG law have rather a marginal effect on the development of electricity prices because these incremental costs are counterbalanced by savings in electricity purchasing and avoided grid costs for the utilities. According to information supplied by Hans- Josef Fell, the research policy spokesman of Bündnis 90/Die Grünen (the German green party) the EEG law increased electricity costs by a mere one per cent. In view of the advantages to the climate and the labor market this is surely a small price to pay. Solar electricity growing substantially One of the most important sources of renewable energy generation with the highest growth rates is solar energy. With the launch of the 100,000 roofs solar energy program in January 1999 and the introduction of the law on renewable energies (EEG) in April 2000 the total installed PV capacity rose within one year from 67 MWp in the year 1999 to 111 MWp in the year For the year 2001 loan commitments for another 67 MWp were granted within the framework of the 100,000 roofs solar energy program. For the years 2002 and 2003 further loan commitments for 80 MWp and 5

6 [2002] 95 MWp respectively can be forecast (in line with the expansion targets of the 100,000 roofs solar energy program). Accordingly, the installed capacity will almost double from about 180 MWp to about 350 MWp in the period from 2001 to (Federal Government: experience report on the EEG law, 28 June 2002). The electricity generating costs and the investment costs for solar power plants also declined significantly in some cases from 1999 to 2001 according to the analysis contained in the experience report on the EEG law. In addition, the Federal Government is expecting the continuous growth of the market to drive down the costs of solar power generation even more significantly. In terms of PV prices I expect a medium term halving of the current level. This is not a fear but part and parcel of our strategy of success. (Frank H. Asbeck) In 2001 industry sales amounted to some 500 million EUR increasing by a factor of five in comparison with the year This means that Germany has developed into the world s second largest PV market behind Japan. In view of the many different forecasts that classify photovoltaic as one of the major technologies for the future the industry in Germany has by now positioned itself very well. For this to remain so and for the solar industry to continue to be able to provide alternative employment for the jobs being lost in old industries photovoltaic will depend on an appropriate energy policy also in the medium term. The Federal Government has taken account of this fact by extending the EEG law to cover a total of 1,000 MW of production capacity. The market in the first half of 2002 The economy in Germany showed a lowkey development in the first half of According to information provided by the Hamburg HWWA-Institut für Weltwirtschaft (Institute for the World Economy) the gross domestic product increased only slightly in the first half of While exports developed quite well the domestic demand declined noticeably. Private households significantly reduced their expenditure. In the opinion of the researchers of the HWWA the economy may gather speed again and domestic demand may also pick up again in the second half of the year. For the entire year 2002 HWWA forecasts in increase in GDP of 0.7 per cent. Our retail prices would long since have become competitive if solar energy had been subsidized only remotely as vigorously as nuclear power plants. (Frank H. Asbeck) The weak economy in Germany also had repercussions on the German solar industry. Yet, the industry was able to resist similar declines in demand to those suffered by other industries in the consumer durables field. According to the German Solar Industry Association (Deutscher Fachverband Solar = DFS) in Freiburg the demand for photovoltaic systems was on the level of the first half of It is true that the volume of loan commitments granted by the Reconstruction Loan Corporation (Kreditanstalt für Wiederaufbau = KfW) for PV plants in the 1,000 roofs program generally considered to be the market indicator declined by some 13 per cent to 25.9 Megawatt (MW) in comparison with the first six months of But in the first half 6

7 [Interim Report 2002] of 2001 a higher than average number of applications left over from the year 2000 still had to be processed because at the end of 2000/beginning of 2001 there was a massive backlog of applications. In the months of May and June the loan commitments were already up on the appropriate months of the previous year again. Market outlook In view of the continuing uncertainty of the overall economic situation as well as the energy policy background conditions due to the upcoming general elections the market behavior in the second half of the year is difficult to forecast. However, it is safe to assume that a sensible energy policy to protect our climate will continue to be pursued also beyond the 2002 general elections. Subsidies are important at the beginning. But we will be able to reduce the prices of our products easily by 5 per cent annually in order to compensate for the declining state subsidies. After all, only those things succeed that are an economically viable proposition for investors, manufacturers and users. (Frank H. Asback) the year Until 2020 the employment of renewable energies is to be increased by a factor of at least 3.5. In addition, the commission recommends not only the maintenance but also the further development of the law on renewable energies (EEG). All parliamentary groups of the Bundestag are represented in the study commission. The chairman of the commission is a representative of the CDU parliamentary group. Against this backdrop the resolution passed by the Bundestag to increase the 350 MW ceiling of the EEG law to 1,000 MW must be seen as a trailblazing decision. Until the solar energy output of at least 1,000 MW funded by the EEG is reached the law will secure the photovoltaic market in Germany. This gives the solar industry the necessary investment security for the establishment and expansion of production facilities so as to be able to stand its ground also against the increasing competition from Japanese manufacturers. In spite of the majority of the CDU/FDP opposition in the second parliamentary chamber (Bundesrat) the proposed amendment to the law will not have to go to the Bundestag/Bundesrat mediation committee and will thus come into force in the course of the second half of The fundamental objective of building up a sustainable energy system is supported by all the political parties represented in the German parliament (Bundestag). Thus the all-party study commission of the German Bundestag on sustainable energy supplies advised in its report submitted in early July 2002 that in line with the objectives already formulated by the Federal Government the share of renewable energies in total German energy consumption be doubled by The market is growing at 25 per cent per year. We will grow at least as fast. (Frank H. Asbeck) III. Business Development in the SolarWorld Group In the first half of 2002 sales of the Solar- World group of companies increased by 52.1 per cent over the same period last year to million EUR. In parallel to 7

8 [2002] The Joint Venture will optimize and establish this innovative silicon technology in order to have a pilot plant ready by 2005 with an initial annual capacity of 800 tons of silicon at the Degussa AG location in Antwerp. SolarWorld AG will use up to 85 per cent of the solar grade silicon for the group s own production of solar silicon wafers. The rethe substantially increased business volume the group also generated sound earnings. In comparison with the first half of 2001 and eliminating extraordinary income generated during that period, earnings before interest, tax, depreciation and amortization (EBITDA) went up by more than 53 per cent to 7.2 million EUR. The operating result before interest and tax (EBIT) amounting to 2.18 million EUR was more than 22 per cent better than the equivalent figure for the same period last year. In addition, it was possible in the previous year to generate extraordinary income to the tune of 6.9 million EUR primarily attributable to the placement of shares of WindWelt AG in the stockmarket. In the first half of 2002 no such extraordinary income was generated. For the first time the first half statements of the SolarWorld group were consolidated according to IAS. The comparative figures for the previous year were gathered and consolidated from the summary of the individual statements of the group companies. I * 2002 Difference Per Cent Sales 31, , , EDITDA 4, , , EBIT 1, , *Figures statistically consolidated and before extraordinary items novative production of solar grade silicon. As silicon is the input product for the manufacture of solar silicon wafers it can be described as the raw material of the PV industry. Until today, however, silicon is available to the solar industry only at relatively high prices as a by-product of the electronics industry. As a result of the implementation of the new technology jointly pursued by SolarWorld AG and Degussa AG the production of solar grade silicon is to be made significantly more efficient and cost-effective while maintaining the same quality level. It will thus be possible to give the strongly expanding solar industry a long-term source of reliable solar grade silicon supplies in the future. The objective of the Joint Venture is to produce silicon from silan, a gas consisting of silicon and hydrogen. The silan gas will be supplied by Degussa AG as one of the leading worldwide suppliers of specialty chemicals. The decomposition of the silan gas into silicon takes place in tube-type reactors whose technology is contributed to the Joint Venture by SolarWorld AG. SolarWorld AG owns a worldwide and exclusive license for a technical process developed by the US technology company GT Equipment Technologies Inc. (GTi), Nashua/New Hampshire. In this technology silicon from silan gas is precipitated on the walls of small silicon tubes. Joint Venture with Degussa AG In the period under review the group took a trailblazing step towards advancing its strategy of the full integration of the solar value chain. Together with the Düsseldorf specialty chemicals expert Degussa AG SolarWorld AG has established a Joint Venture for the in- 8

9 [Interim Report 2002] mainder will be made available to the worldwide solar wafer industry. Business fields Trading In the first half of 2002 SolarWorld AG continued its positive development and, in a stagnating overall market, was able to further expand its market share. In the year under review SolarWorld AG substantially strengthened its sales and distribution activities managing to benefit from its large diversity of distribution channels in a stagnating environment. In the process, the consistent training of fitters from different industries has had a stimulating effect on sales. SolarWorld AG has also vigorously promoted the build-up of a comprehensive foreign sales force and distribution network. In the course of the period under review a new international distribution structure was introduced with so far four employees. The countries outside Germany also contributed to the positive development of sales in the trading business albeit at an as yet low level at the moment. Wafers In parallel to the Joint Venture with Degussa AG for the production of silicon from silan gas the group initiated the use of another source for the production of solar grade silicon. We are the first company to enter the field of solar recycling. (Frank H. Asbeck) 9

10 [2002] In cooperation with the Technical University of Freiberg Deutsche Solar AG is the first company in Germany to test industrial scale recycling of used cells and modules in a pilot project. Within the framework of the Deutsche Solar recycling process the used modules are initially subjected to a thermal process. After combustion some glass, the frame, the metallic compounds, fillers and the solar cells are left. While the other components are sorted and collected and made available for further utilization the solar cells whose surfaces have only been slightly attacked superficially will be cleaned in several consecutive etching processes until they have the quality of a new wafer. In doing so the company is anticipating the demands of the new Electric Power Ordinance already today. So, at the end of the recycling process the company gets high quality solar silicon wafers that can be reintegrated into the production process at a high level of added value creation. Recycling the wafers is more cost-effective than producing the wafers from scratch and in addition it saves 80 per cent of primary energy. The new type of recycling plant will be built at the location of Deutsche Solar AG in Freiberg on the former Saxonia industrial estate. The pilot plant is to start operations by the end of 2002 and will provide jobs for 30 people. For the development of this new recycling process Deutsche Solar AG and the Technical University of Freiberg received funding from the Federal Government to the tune of 1.3 million EUR. The funding notice was personally presented to the parties involved by the Minister of State for the New Federal States, Rolf Schwanitz. In addition to these two projects to secure the long-term supply of silicon to the silicon wafer production the plans to expand the wafer production itself have also been accelerated yet again. In the next 3-4 years we will invest some 200 to 300 million EUR and give employment to some 700 people at the Freiberg location in one of the most modern sectors of industry. (Frank H. Asbeck) Thus, the management of the group decided to bring forward the expansion of solar wafer capacity at Deutsche Solar AG. As a result, the production capacity at the end of fiscal year 2002 will amount to 120 MW. Plans so far provided for a capacity of only 100 MW. In the final stage of development the capacity can be increased to 220 MW by the year 2005 (previous plan: 200 MW). With these plans for expansion Deutsche Solar AG does not only cover the demand for wafers within the group but also meets the wishes of international customers for a reliable supply of solar silicon wafers. In the course of the period under review Deutsche Solar AG was able to further consolidate its important position in the international solar market by entering into a number of new contracts with the worldwide solar cell industry for the supply of solar wafers. With very few exceptions all the leading solar cell manufacturers from Germany and Europe, Japan and the USA, are among the contract partners of Deutsche Solar AG. After the end of the period under review SolarWorld AG took over, as planned, the outstanding 18 per cent capital share in Deutsche Solar AG from Solar Holding 10

11 [Interim Report 2002] Beteiligungsgesellschaft mbh thus increasing its stake to 100 per cent. Already at the beginning of the reporting period the conversion of Deutsche Solar into a stock corporation (Aktiengesellschaft = AG) had been completed. In the course of the acquisition of the shares the capital stock of Deutsche Solar AG was increased from 20 million EUR to 40 million EUR by converting capital reserves of the company and cash deposits of the parent company. Cells The establishment of the modern cell factory at the Freiberg location under the guidance of the wholly owned SolarWorld subsidiary Deutsche Cell GmbH progressed as scheduled during the period under review. At the end of the year the factory will start the production of solar cells with an initial annual capacity of 30 MW using the solar silicon wafers of Deutsche Solar AG in the process. Until the year 2005 the capacity can be increased to 80 MW (original plan: 60 MW). What the mobile telephone industry demonstrated can easily be emulated by the solar industry: Solar cells will in the foreseeable future become products for the mass market. (Frank H. Asbeck) Modules In the second quarter of 2002 SolarWorld AG acquired the outstanding capital shares of its Swedish subsidiary Gällivare PhotoVoltaic AB (GPV), Gällivare, Sweden, thus increasing its stake in the company from 96.3 per cent to 100 per cent. The modernization of the Swedish establishment made good progress in the first half of In the further course of the year the production areas will be increased by about 60 per cent to expand the production volume of solar modules and the capacity will be increased to 20 MW. The final assembly of GPV s laminates into modules to meet the group s own requirements has also been taken up by the wholly owned subsidiary Solar Factory GmbH at Freiberg in the first half of In the first quarter of 2003 the company will also begin the further processing of the solar cells made by Deutsche Cell GmbH into solar modules. The annual capacity of module production will initially be 30 MW. This capacity can be expanded to 60 MW by the year Energy After the end of the reporting period Solar- World AG sold its entire stake in WindWelt AG to Eifelstrom GmbH, a subsidiary of Solar Holding Beteiligungsgesellschaft mbh. This divestment serves to enable the group to concentrate on the solar core business. At the beginning of fiscal year 2002 SolarWorld AG had initially increased its shareholding from 65 per cent to 87 per cent. Until its divestment WindWelt AG managed the wind energy business of the entire group and designed and planned solar power plants for third parties. The company holds a stake of 16.2 per cent in the wind power plant manufacturer Fuhrländer AG, Waigandshain/Westerwald. After departure from the SolarWorld Group the company will continue to operate its business unchanged. 11

12 [2002] Capital increase and financing In order to back up the investment plans of the company to establish one of the most modern integrated solar factories at Freiberg with additional equity capital SolarWorld AG implemented a capital increase from 16 May 2002 to 4 June A total of 825,000 no-par share certificates issued to the bearer were placed in the capital market at 15 EUR each under the lead management of WGZ-Bank, Westdeutsche Genossenschafts-Zentralbank. In the process, 47 per cent of the volume issued was acquired via subscription rights. 53 per cent was taken up by the Solar Holding GmbH company of the Asbeck family at 15 EUR per no-par share certificate. All orders received were completely executed. The proceeds of the issue amounted to some 12.4 million EUR. After the registration of the capital increase the capital stock of SolarWorld AG now stands at 5,775,000 EUR. In the course of the successful capital increase the Asbeck family slightly increased its share in the capital stock of the company thus remaining the largest shareholder with 44 per cent. We can never take decisions too quickly. At the moment, the only risk is to respond too slowly or not at all. (Frank H. Asbeck) The capital expenditure required for the establishment and expansion of solar production is financed via equity capital to the tune of around 25 per cent. These equity funds originate from the proceeds of the capital increase, the company s free reserves as well as the cash flow from the ongoing business activities of the group. Up to 35 per cent of the total volume is covered by public funding. The remaining share of 40 per cent is provided in the form of borrowed capital. In view of the high equity ratio and the simultaneously positive earnings situation of the company the use of borrowed capital at the intended level is a perfectly normal financing transaction and is in no way unusual also in comparison with other profitable German industrial companies. IV. Share and share price development In the period under review the SolarWorld AG stock showed an unsatisfactory share price development. High sales volumes on the one hand were contrasted with a considerable buying restraint on the other hand, the result being declining share prices. The loss of value of the shares to their owners caused by the negative development of the share price is an extremely unpleasant occurrence for stockholders. In view of the successful operational development of the group the weak share price development cannot be explained by the underlying fundamentals. Essentially, the company sees the following reasons as having caused the drop in the share price: In the course of this last year investor confidence in the international stock markets has again deteriorated significantly. It is above all the stocks of young companies in the area of new technologies that have taken a dive. Thus, Nemax, the share index of the new market, lost about half its value in the first six months of this year. 12

13 [Interim Report 2002] Among the reasons for this loss of investor confidence in the capital market are not only the persistently sluggish economy and a certain restraint after the terrorist attacks of September 11, 2001 but also the negative events around the insolvent US energy dealer Enron as well as the balance sheet manipulations of other major companies. The worry of only having seen the tip of the iceberg as far as the balance sheet frauds are concerned has gripped many private and institutional investors. Added to this, especially in Germany; must be the bankruptcies of well-known companies like the Kirch Group, Philipp Holzmann AG and Babcock Borsig AG. This accumulation of business bust-ups and disasters not infrequently combined with a considerable criminal energy of top management in individual cases led to ever new waves of share dumping at the stock exchanges. Out of the fear of even more bad news many investors unthinkingly parted company with whole chunks of stock only to meet with a very low level of buying interest. Another reason for the stock price decline, especially in the area of renewable energies, lies in the opinion of SolarWorld AG in the political future of these alternative energies perceived as being uncertain after the general elections in September The concern that the positive political funding climate for clean energies might end led to specific investment restraint regarding these stocks in the capital markets obviously also including SolarWorld AG. From the company s point of view, however, even the political parties coming to power after 22 September 2002 cannot ignore the necessity of converting the energy system to reduce the hazardous emissions of greenhouse gases in the medium term not least so as not to jeopardize one of the most promising branches of industry in the future. The dilution effect of the SolarWorld AG capital increase may as often happens with such capital measures also have contributed to the weakening of the stock price. Against the background of the positive earnings situation of the company the stock has a healthy potential for a sustainable upward development in the further course of the year. The stock market capitalization amounts to less than half of the equity capital. It thus does not constitute a rational assessment of the value of this stock. In order to return to an appropriate valuation of the stock SolarWorld AG will redouble its efforts in the direction of a comprehensive and transparent communications policy. By appointing a Chief Manager for Finances in the course of the second half of the year 2002 SolarWorld AG will not only strengthen its operational management structure but will also meet a request frequently voiced by the investing public. After the acquisition of 53 per cent of the shares newly created in the course of the capital increase the Asbeck family remains the main shareholder of SolarWorld AG and has no intention of selling its bloc of shares. 13

14 [2002] V. Outlook For the second half of the year 2002 Solar- World AG expects a continuation of the sound business development. Group sales for the entire year will be above those of the previous year. At the same time the group will generate positive earnings. In addition to the positive operating result the group will generate tax-free extraordinary income. Whether the group s net income of last year will be reached is difficult to forecast clearly at the moment because of the uncertain situation in the overall economy and the unclear energy policy situation after the general elections. Until the first quarter of 2003 the group will have completed a significant expansion process in its integrated solar business. At that point in time the group companies at Freiberg will have a production capacity of 120 MW for wafers, 30 MW for cells and 30 MW for modules that they can offer to the international solar market. With this step SolarWorld AG will establish for itself an important position in the international solar business and join the few international solar energy groups with truly integrated operations. A further doubling of the capacity is planned by 2004/2005 and will be initiated by the Executive Board of the company depending on the market and the earnings situations. On the way to becoming a Global Player our motto is to remain lean and flexible. (Frank H. Asbeck) 14

15 [Interim Report 2002] Consolidated Profit and Loss Statement for the First Half of 2002 I Total Sales 48, Change in unfinished goods Other revenue 1, Capitalized services Materials - 26, Staff costs - 6, Other operating expenses - 11, EBITDA 7, Depreciation/Amortization - 5, = EBIT 2, Financial income = EBT 1, Taxes = Profit/Loss for the 6 month* *before minority interest 15

16 Design: Kreativ Konzept Klaus Schmuck, Bonn SolarWorld AG [Kurt-Schumacher-Straße 12-14, D Bonn] [Tel.: , Fax: -99] [Internet: [Investor Relations Tel.: ]