FIRST QUARTER 2009 CONSOLIDATED INTERIM REPORT SOLARWORLD AG 176.3

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1 FIRST QUARTER 2009 CONSOLIDATED INTERIM REPORT SOLARWORLD AG m REVENUES 1 ST QUARTER 2009

2 SOLARWORLD 1 ST QUARTER SELECTED CORPORATE INDICATROS // IN K 02 REVENUES BREAKDOWN BY REGION // IN m

3 SOLARWORLD 1 ST QUARTER QUARTERLY COMPARISON OF THE CONSOLIDATED INCOME STATEMENTS // IN K 04 INDICATORS OF THE SOLARWORLD STOCK ISIN (International Securities Identification Number) DE

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7 BE INDEPENDENT BE SUSTAINABLE BE SUCCESSFUL 05 AT OUR SHAREHOLDERS 07 INTERIM GROUP MANAGEMENT REPORT 1 ST QUARTER CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1 ST QUARTER 2009

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9 LETTER BY THE CHAIRMAN DEAR CUSTOMERS, SHAREHOLDERS, EMPLOYEES AND FRIENDS OF SOLARWORLD AG, Sun at work yes, the sun works for us every day, worldwide. And in doing so it produces more energy every day than we need all over the world. Our business model is based on the power of the sun and we have shown that we SolarWorld have adopted the right approach with our integrated production: We are independent, especially at economically turbulent times. The price reduction that may cause problems to others is something we cannot only compensate for no, we even welcome it because it is an important and correct measure on the way to grid parity. We have our costs under control thanks to our efficient production processes. And we can consistently offer our tried and tested SolarWorld quality. So far the market was characterized by the fact that customers made their buying decisions primarily on the basis of the price of solar equipment. Yet, the market parameters have changed. The high demand coming from final customers is met by an even higher level of supply. Thus, the importance of the brand image to the buying decision is getting ever more crucial. Especially in the case of long-term investments which the purchase of a solar system is a strong brand is more important than ever. The awareness level enjoyed by the SolarWorld brand is therefore turning out to be a distinct competitive advantage: When buying from SolarWorld our customers are not just buying a product but more than 30 years of production experience, superb quality, a 25-year performance warranty and the certainty that our modules, once they no longer produce clean power, are recycled by us in an environmentally friendly manner. The campaign we started in the first quarter, the SolarWorld Dachsparkasse (roof top savings bank) is based on this very thought of sustainable quality: a certain return in uncertain times. Our strategy is right! Therefore we again have high-flying plans for the year 2009: We want to continue to grow, we want to crack the one billion sales barrier, and as SolarWorld we want to prepare the way to grid parity. We can stick to our growth targets with a clear conscience. The first quarter is living proof: In comparison with our competitors we were able to increase our sales by five per cent and boost our group profit at the same time! We will continue to invest: in the expansion of our international production sites, in our Research and Development, in our qualified staff, in our brand. The future remains exciting! And most importantly: We will remain on course. That s what I am looking forward to together with you. With sunny greetings Dipl.-Ing. Frank H. Asbeck Chairman and CEO of SolarWorld AG

10 690.8 m FREE LIQUIDITY AS OF MARCH 31, 2009

11 INTERIM GROUP MANAGEMENT REPORT 08 THE SOLARWORLD STOCK 10 MARKET AND GENERAL CONDITIONS 12 BUSINESS DEVELOPMENT 15 EARNINGS, FINANCE AND ASSET SITUATION 19 RESEARCH AND DEVELOPMENT 19 MATERIAL RELATED PARTY TRANSACTIONS 20 SUPPLEMENTARY REPORT 20 OPPORTUNITIES AND RISKS 21 FORECAST REPORT

12 INTERIM GROUP MANAGEMENT REPORT THE SOLARWORLD STOCK 08 THE SOLARWORLD STOCK BE INDEPENDENT BE SUSTAINABLE BE SUCCESSFUL COMPACT SOLARWORLD shares stable in first quarter despite volatile capital markets SOLARWORLD to 5.09 per cent CAPITAL MARKET SOLARWORLD SHARES HOLDING STEADY. During the first three months of fiscal year 2009 the capital markets continued to show extreme sensitivity in responding to overall economic developments and were correspondingly volatile. As at 31 March 2009, the cut-off date, the DAX stood at 4,085 points (-15.9 per cent in the first quarter of 2009), with the TecDAX closing at 455 points (-8.9 per cent). The listed solar stocks followed the negative trend: The solar share index SOLEX lost 15.7 per cent and stood at 486 points at the end of March. Despite the strong volatility in the markets, the SolarWorld AG stocks were relatively stable in the first quarter. They only lost 1.1 per cent in the first quarter of 2009 and stood at a closing price of at the cut-off date. SolarWorld stocks thus significantly outperformed the DAX and also TecDAX, which fell relatively moderately. 05 YEAR-ON-YEAR DEVELOPMENT OF THE SOLARWORLD STOCK Source: Deutsche Börse, % DAX % TecDAX % SolarWorld Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar In April the stock markets showed a considerable upward trend. The DAX closed at 4,732 points at the end

13 INTERIM GROUP MANAGEMENT REPORT THE SOLARWORLD STOCK of the month, with the TecDAX closing at 576 points. The SolarWorld stock also rose continually and reached a price of as at 30 April. 09 Due to their sound performance, our stocks maintained their leading position in the TecDAX in the period under review. In terms of the market capitalisation of the technology stocks, SolarWorld ranked second in March (December 2008: third place), ranking third in terms of trading volume (December 2008: second place). CAPITAL STOCK AND SHAREHOLDER STRUCTURE. In the first quarter the capital stock remained unchanged being divided into 111,720,000 no par value bearer shares with an imputed nominal value of 1.00 EUR. At the cut-off date (31 March 2009) there was a change in the shareholder structure of SolarWorld ag. DWS Investment GmbH increased its share from 4.93 to 5.09 per cent. 06 SHAREHOLDER STRUCTURE AS OF MARCH 31, % Free float 25.00% Frank H. Asbeck 2.23% FMR LLC (Fidelity Group) 2.82% BlackRock Inc./BlackRock Holdco 1, LLC 5.09% DWS Investment GmbH 1.92% UBS AG CAPITAL MARKET INTEREST PERSISTENTLY HIGH. SolarWorld enjoys lively interest on the part of analysts and investors and is being covered by 35 sell-side analysts. We maintained our close contacts to the capital market in the first quarter by way of telephone conferences, meetings at our locations, Road Shows and conferences (Frankfurt, Zurich, London, Munich, Benelux) as well as our analysts conference in Bonn on 26 March On this day the annual results and the Group Annual Report were also presented in the context of our yearly business press conference.

14 INTERIM GROUP MANAGEMENT REPORT 10 MARKET AND GENERAL CONDITIONS BE INDEPENDENT BE SUSTAINABLE BE SUCCESSFUL COMPACT SOLARWORLD SOLARWORLD benefits from presence in all major solar markets GENERAL MARKET ENVIRONMENT The repercussions of the financial crisis also dominated the world economy in the first quarter of According to the Kiel Institute for the World Economy (IfW) world trade collapsed during those months in spite of the numerous international stimulus packages. Private consumption and gross investments declined significantly in many industrialized countries because of the crisis. Industry responded particularly sensitively to this backward trend: It massively cut down on production worldwide and in doing so it counteracted both the shrinking demand and the increased inventories at the same time. In Germany the unusually cold and persistent winter additionally slowed down building production even more than in previous years. On the whole the German economy shrank in the first quarter of 2009 by 2.2 (previous year: +1.5) per cent according to a provisional estimate by the German Institute for Economic Research (DIW). Driven by the weak economy and the worldwide decline in demand the average oil price (WTI) went down to some 48 (March 2008: 105) US dollars/barrel. However, the drop in oil prices did not have any similar influence on household electricity prices. On the contrary: The consumer portal Verivox reports, for example, that German utilities had increased their rates by an average of about ten per cent for In the USA the Energy Informa tion Administration (EIA) also found that US-wide electricity prices had again gone up by some two per cent. DEVELOPMENT OF THE INTERNATIONAL SOLAR MARKET As expected the development of the solar market in the first quarter of 2009 was moderate. The main reason for this was the weather which was detrimental to the necessary assembly work in the most important sales markets in Europe and the USA. The difficult financing environment also had an influence on the demand especially in the case of large-scale projects so that in the period under review the supply of solar products exceeded the demand for the first time. Therefore and also because of the legally determined reduction of the feed-in compensation the prices for solar products declined significantly in all markets in the first quarter of This mainly caused problems for the less well established market participants. For them the lack of long-term customer relations caused sales difficulties as well as strong margin losses.

15 INTERIM GROUP MANAGEMENT REPORT In Germany, too, the solar market in the first few months of the year 2009 was severely impaired by poor weather conditions. Yet, from March onwards the demand for solar modules picked up again. Above all the demand of private households developed positively as these primarily receive the necessary financing via the established credit funding programs of the Reconstruction Loan Corporation (KfW) and are therefore not affected by the credit crunch. 11 Other European markets like Italy, France, Belgium and the Czech Republic were also severely hit by the cold winter weather in the first two months of the year. However, in the second half of the quarter there were already indications of a growing dynamism so that in spite of a weak start to the quarter these markets could achieve positive growth in comparison with the previous year. In the USA the general market growth in the first few months of the year 2009 was relatively moderate. Due to the tense financing situation solar projects were checked more closely mainly in the open-field segment. This admittedly delayed the implementation of some projects on the one hand, but on the other hand this detailed examination may produce competitive advantages to established market operators because the US banks increasingly take the reputation of the manufacturer, the product quality as well as existing certifications like UL listing and TÜV into account when granting credits. In Asia the announcements of new funding programs characterized the first quarter of In Japan investment grants of up to 70,000 /kw (about 510 /kw) are to be paid for the installation of plants with an output of up to 10 kw. In addition, the Japanese Prime Minister announced in March further incentives for the installation of solar systems within the framework of the Japanese economic stimulus program that is to be approved by the end of April China also announced the introduction of a new funding program for solar energy. This program will support integrated and non-integrated roof systems with an amount of up to 2.17 /Wp. According to provisional information the entire funding program for renewable energies in China will amount to some 30 billion US dollars. What is not certain yet is how much of this will be earmarked for solar energy. South Korea continues to show a positive development maintaining its top position in Asia also in the first quarter of EFFECTS OF GENERAL CONDITIONS ON BUSINESS DEVELOPMENT In spite of the initial restraint the solar market developed positively on the whole in the first quarter of Because of its presence in all important solar markets SolarWorld also benefited from this development. Our strong market positions in the important core markets as well as our good customer relations turned out to be crucial competitive advantages: They secured a consistent demand for us even with increasing competitive pressure. Also of great help to SolarWorld were its strong brand name and the excellent quality of the products. Both these features produced distinct competitive advantages in view of the difficult financing environment in the first few months of the year because quality products and a well-known brand name like that of SolarWorld support a rapid granting of credits.

16 INTERIM GROUP MANAGEMENT REPORT 12 BUSINESS DEVELOPMENT IN THE FIRST QUARTER OF 2009 BE INDEPENDENT BE SUSTAINABLE BE SUCCESSFUL COMPACT SOLARWORLD MODULE AND SOLAR KIT BUSINESS MAINTAINED. Due to the long winter the weather conditions were extremely detrimental to assembly work all over Europe. This led to a temporary increase of our inventories during the period under review as some lots that had been ordered were called off with some delay. Our core market Germany turned out to be very active in the first quarter. We managed to increase sales in our trading business significantly in comparison with the same quarter of the previous year. It was particularly the project business with smaller plants that developed very well. Especially private customers attach increased importance to product quality and the awareness level of the brand manufacturer. Here we have acquired crucial competitive advantages like quality and experience over the last few years. We received confirmation of this in the first quarter of 2009 when the Photon trade magazine identified our modules as the winners of a long-term test. As another veritable customer advantage we are placing our Sunpass in the market, an extensive list of all certificates and approvals that is delivered together with our solar kits and modules. The Spanish solar market showed the expected decline in the wake of the change in legal framework conditions. This also influenced our sales volume there. The Czech Republic developed into an important European market for the future in the first quarter. We already sold a large-scale project in the single digit megawatt range in In this still young market we are benefiting from our sales partnerships in other markets that we were able to use strategically here. We could also benefit from our strong positioning with systems integrators and specialist wholesalers in the market in Italy placing our sales volume in this market on a sound basis. In the first quarter Belgium advanced to becoming an important market in the roof systems business. Already in the first three months we were able to exceed the one megawatt threshold with modules and complete solar kit systems. Positive development was also reported from the markets in France and Greece. The as yet moderate sales development is typical of markets that are still growing but does create a stable basis for further growth. In

17 INTERIM GROUP MANAGEMENT REPORT Greece we could successfully sell the modules for a large-scale project in the single digit megawatt range. 13 On the whole we were able to further expand our sales in the module and solar kit business in the first quarter of 2009 with the exception of the Spanish market. Expansion of international production sites proceeding according to plan. The necessary reorganization of the Shell activities and the resulting restructuring of our US locations could be finally and successfully completed in the first quarter of We have thus created an excellent basis on which to build up a highly modern and effective production with sustainable and efficient cost structures in the years to come. Our production unit in Vancouver/Washington will concentrate in the future on the reprocessing of raw materials. In Camarillo/California the old production line was completely closed down in the course of the first quarter and a new, highly advanced and more efficient one was commissioned. This will enable us to reach a nominal annual capacity of 150 MW at this location in the course of the current fiscal year. Because of the restructuring measures at these two locations we have modified the structure of our workforce: We are currently employing fewer people there. At the same time we created additional jobs in Hillsboro due to the continuous expansion of the production capacities there so that the total headcount in the USA has gone up in the first quarter of Human Resources p. 18 // In the next few months the Hillsboro site will be enlarged by the addition of a new logistics and production expansion building. At our German production site in Freiberg we currently have a wafer capacity amounting to 550 MW. As a matter of principle our integrated production allows for wafers to be further processed into cells and modules in the wafer business in the event of market volatility. In our Joint Venture in South Korea module production in the first quarter was ramped up as scheduled and the nominal capacity of 70 MW was reached in successive steps. FURTHER GROWTH STRENGTHENED BY NEW CREDIT. Our planned growth has been strengthened in the period under review as we raised a new long-term credit amounting to 200 million. Financing analysis p. 16 // Thanks to our good credit rating we are not affected by any potential credit crunch and could contract for a syndicated credit with German commercial banks. It gives us a sound basis for further growth as well as a good competitive position. POSITIONING STRENGTHENED VIA TRADE FAIRS AND CAMPAIGNS. In the period under review SolarWorld AG presented itself at three (same quarter last year: two) international trade fairs: the Salon des Energies Renouvelables in Lyon/France, the ISH World Lead Fair for Sanitation, Heating, Air Conditioning and Renewable Energies in Frankfurt/Germany and the ecotec in Athens/Greece. With this increased presence at trade shows we are meeting the persistently high level of interest of our trade customers in the products of the SolarWorld brand which this year was mainly focused on our poly-modules that had come out as winners from the Photon long-term test. At the ISH we also launched one of our exhibition novelties, a 6-inch mono-module. This was a successful range extension. Future Business Development p. 22 // We also introduced the Suntrol Portal, an Internet platform for final users by which current yield data for one s own solar power plant can be retrieved at any time and compared with those of other plants. The yield figures are graphically recorded and evaluated per month and per year.

18 INTERIM GROUP MANAGEMENT REPORT 14 As a promotional measure we launched a Germany-wide campaign for a solar Roof top savings bank in the first quarter of It highlights the sound and sustainable investment in the form of a solar system installed on the roof of one s own home and the yield to be achieved in this way. With this campaign we are selectively addressing homeowners and thus potential final customers. To this end, we have developed materials including a newspaper distributed to around 4.6 million households in all of Germany since the first quarter. In addition, we have produced brochures and flyers advertising our Roof top savings bank at trade fairs and events and we provide advertising materials and ad motives to our expert partners. We are thus banking on the demand effect in favor of solar power products, developing due to the growing scepticism among private investors about conventional financial products. The feedback to our broadly based campaign has been very good and we have recorded corresponding demand effects for our module and kit business in Germany, our core market.

19 INTERIM GROUP MANAGEMENT REPORT EARNINGS, FINANCE AND ASSET SITUATION 15 BE INDEPENDENT BE SUSTAINABLE BE SUCCESSFUL COMPACT EARNINGS SITUATION In the first quarter of 2009, the SolarWorld Group increased its sales year-on-year by 5.2 per cent or 8.8 million to (previous year: 167.5) million. The group-wide share of foreign sales fell to 49.5 (previous year: 63.2) per cent as against the first quarter of This change is attributable to a fall in sales volumes in the trading segment in the declining Spanish market. This development was offset by a growth in sales volume in our core market Germany. In order to enhance the assessment of the operating performance of the SolarWorld Group during the first quarter of 2009, the indicators earnings before interest and taxes (EBIT) and group net profit for the first quarter of 2008 were adjusted for special one-off effects. Earnings for the first quarter of 2008 had included income of 3.7 million from the expenditure grants agreed in the context of the acquisitions made in These expenditure grants affected profit in the second quarter of 2008 for the last time. Net profit was also influenced in the first quarter of 2008 by the proceeds from the sale of the 65 per cent share in Gällivare PhotoVoltaic AB amounting to 12.8 million. In the first quarter of 2009, EBIT grew by 0.1 million to 39.2 (previous year: 39.1) million against the EBIT adjusted for the expenditure grants for the first quarter of The EBIT margin decreased by 1.2 percentage points to 22.2 (previous year: 23.4) per cent against the adjusted EBIT margin for the first quarter of Group net profit rose by 5.0 million to 23.8 (previous year: 18.8) million against the adjusted group net profit for the first quarter of 2008.

20 INTERIM GROUP MANAGEMENT REPORT 16 Including all one-off effects from the year 2008 the EBIT in the first quarter of 2009 decreased by 3.7 million to 39.2 (previous year: 42.9) million year-on-year. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 53.9 (previous year: 54.8) million in the first quarter of Group net profit decreased by 10.9 million to 23.8 (previous year: 34.7) million year-on-year. In the first quarter, the materials cost ratio was affected by the rise in inventories and grew year-on-year from 49.9 per cent to 60.7 per cent. In the first quarter of 2009, staff costs rose by 6.3 million to 26.2 (previous year: 19.9) million. In particular this was due to the continual recruitment of new staff. The staff cost ratio on the other hand fell to 10.5 (previous year: 11.3) per cent. Depreciation rose by 2.8 million year-on-year to 14.7 (previous year: 12.0) million due to major investments in the expansion of our production capacity. Other operating expenses grew by 5.2 million to 27.4 (previous year: 22.1) million in the first quarter of 2009 due to the expansion of production capacity. The expenditure ratio, in contrast, declined by 1.6 percentage points to 11.0 (previous year: 12.6) per cent. In the first quarter of 2009, the financial result improved by 8.9 million year-on-year to -4.2 (previous year: -13.2) million. FINANCIAL SITUATION Equity rose by 29.5 million year-on-year to million as against 31 December 2008 (841.1 million ). The equity ratio stood at 40.1 (31 December 2008: 39.7) per cent as at 31 March In the first quarter of 2009, the group s financial flexibility was further increased by means of the conclusion of a syndicated credit line with a volume of 200 million. No funds were called from this loan commitment by 31 March By the end of the quarter, financial liabilities totalled (31 December 2008: 699.5) million, of which 95 per cent are non-current. The investment grants and allowances carried under non-current liabilities totalled 76.6 (31 December 2008: 78.8) million as at the balance sheet date. These public funds for the expansion of our production capacity were accrued on the liabilities side of the balance sheet and will be written back through profit and loss over the period of utilization of the subsidized investments.

21 INTERIM GROUP MANAGEMENT REPORT The increase in other non-current liabilities of 8.4 million to (31 December 2008: 292.5) million resulted in particular from the rise in down-payments for long-term wafer delivery contracts of 8.4 million to (31 December 2008: 265.1) million. 17 Investments in intangible assets and property, plant and equipment totalled 68.4 (previous year: 43.6) million in the first quarter of At 34.9 million, investments focused on the expansion of wafer production by Deutsche Solar at the Freiberg site. A further 24.2 million were invested in the expansion of the integrated cell and wafer production at the Hillsboro site. Investments in cell production by Deutsche Cell at the Freiberg site totalled 4.6 million in the first quarter. Free liquidity (liquid funds and other financial assets) amounted to (31 December 2008: 836.1) million as at 31 March The cash and cash equivalents of (31 December 2008: 431.7) million included in these liquid funds mainly comprised overnight money and fixed-term deposits. In addition, capital market products worth (31 December 2008: 404.4) million were held at the balance sheet date. Annual Group Report 2008/Notes p.191 // The cash flow from operating activities amounted to -83.7(previous year: 80.9) million in the first quarter The cash flow from investing activities amounting to (previous year: 235.5) million was in particular influenced by payments made for investments in fixed assets of million and cash inflows from the disposal of financial investments totaling 42.0 million. The cash flow from financing activities amounted to -9.9 (previous year: -10.4) million and comprised a cash outflow for the repayment of financial credits of -1.9 million as well as interest payments of -8.0 million.

22 INTERIM GROUP MANAGEMENT REPORT 18 ASSET SITUATION The balance sheet total rose by 52.5 million as against 31 December 2008 to 2,173.1 (31 December 2008: 2,120.6) million. The increase in non-current assets of 69.0 to (31 December 2008: 666.9) million was primarily driven by the rise in property, plant and equipment caused by the expansion investments. The working capital grew by 36.7 per cent to million as against 31 December This development is above all attributable to the temporary rise in inventories of 81.2 million to (31 December 2008: 523.8) million and the increase in receivables of 33.0 million to (31 December 2008: 71.2) million. The down-payments carried under inventories amounted to (31 December 2008: 377.9) million as at 31 March Down-payments received accounted for (31 December 2008: 287.0) million as at 31 March HUMAN RESOURCES The number of our employees continued to go up in the first quarter of As of the cut-off date (31 March 2009) we employed 1,889 people worldwide which is 26 per cent more than in the same quarter of the previous year. If our temporary workers are included a total of 2,518 (previous year: 1,946) people were working for SolarWorld as of the cut-off date. Compared with the number of our employees at the end of the 2008 fiscal year (1,825) the personnel development grew as of the cut-off date by 3.5 per cent and was slightly positive. 07 GROUP EMPLOYEES AS AT 31 MARCH 2009 Employees Employees +/- Location as at as at absolute Germany 1, , USA Rest of the world Total 1,889 1, incl. 93 trainees 2 incl. 63 trainees Personnel changes on the Executive Board and the Supervisory Board did not take place in the first quarter of 2009.

23 INTERIM GROUP MANAGEMENT REPORT RESEARCH AND DEVELOPMENT 19 The SolarWorld Group pursues a Research and Development approach across the entire solar value chain from silicon via the wafers, the cells and the modules all the way to the complete systems. This produces a crucial competitive advantage for us versus other makers of solar power technologies. The central task of our innovation activities is to continuously reduce the costs of solar power through process and product improvements with the objective of achieving grid parity in this way. As regards the individual projects in the current research priority areas please refer to the chapter Research and Development in the 2008 Annual Group Report. MATERIAL RELATED PARTY TRANSACTIONS In the first quarter the SolarWorld Group received contract production services and modules worth 8.0 million from joint ventures and delivered contract production services worth 3.2 million for joint ventures. In the first three months the SolarWorld Group received contract production services worth 4.8 million from shareholdings measured at equity. Apart from these transactions there were no related party transactions with a material effect on the SolarWorld Group s net assets, financial position and results of operations.

24 INTERIM GROUP MANAGEMENT REPORT 20 SUPPLEMENTARY REPORT EVENTS OF PARTICULAR IMPORTANCE AND THEIR REPERCUSSION BELGIAN SOLAR PARK RECYCLED IN FREIBERG. Our subsidiary Sunicon AG started in April to recycle the oldest Belgian solar park dating from the year The 2,200 modules in total from Chevetogne will be expertly reprocessed into solar-grade silicon. With this process some 30 per cent of energy can be saved in the production of new solar cells. Sunicon AG was founded in 2007 absorbing the business unit SolarMaterial that had specialized in recycling. In the process SolarWorld occupied a promising business field for the future because in Germany the installation of open-field solar plants will only be allowed from 2010 onwards if the recycling is secured. The Reconstruction Loan Corporation (KfW) will also make its credits dependent upon this condition in future. At the moment Freiberg has a nominal etching capacity for recycling of about 1,200 tons of solar-grade silicon per annum. In Freiberg the modules of the oldest German solar plant at Pellworm, Schleswig-Holstein, had already been recycled. OVERALL MANAGEMENT STATEMENT ON THE ECONOMIC SITUATION AT THE TIME OF REPORTING The management of SolarWorld AG judges the economic situation of the company to be positive against the background of the earnings, finance and asset situation as portrayed in the 2008 annual financial statements and the figures of the first quarter of 2009 outlined above as well as taking into consideration the ongoing business at the time when the group interim management report was drawn up. In comparison with the first two months of the year 2009 that were strongly influenced by bad weather the month of April saw revenues for the SolarWorld Group picking up. This was also recognized by the capital market: The share price of the SolarWorld stock has increased since then thus reflecting the positive development. OPPORTUNITIES AND RISKS In the course of the first quarter of 2009 no major changes occurred in the external and/or internal conditions of the company. As regards the individual opportunities and risks we refer you to the 2008 Annual Group Report. At the time of reporting there were no risks that might have jeopardized the continued existence of the SolarWorld Group. We do not expect any fundamental changes in the risk situation from today s point of view.

25 INTERIM GROUP MANAGEMENT REPORT FORECAST REPORT 21 BE INDEPENDENT BE SUSTAINABLE BE SUCCESSFUL COMPACT SOLARWORLD EXPECTED MACRO-ECONOMIC ENVIRONMENT Towards the end of 2009 the Kiel Institute for the World Economy (IfW) expects the world economy to pick up again but does assume in its forecast that the rate of expansion will be slower. In the second half of the year the Kiel researchers think that worldwide production will pick up again slightly so that world trade will also increase. Positive impulses for the world economy are expected to come from China and India. Yet, even in those countries the dynamism of growth can be expected to be lower than last year. On the whole the IfW predicts that the world economy will shrink by 3.3 per cent in For the Eurozone a decline of 4.5 per cent is forecast. In Germany, mostly because of the weak world trade, the GDP may go down by 6.0 per cent while in the USA they expect the negative dynamism to be more moderate at 3.5 per cent. For 2009 the Energy Information Administration (EIA) assumes that due to the declining oil demand prices will also go down and forecasts an average price of about 42 (previous year: 100) US dollars/barrel. However, the future development of the oil prices will, according to EIA, strongly depend on the general economic environment. If the world economy should recover in the second half of the year oil prices would also go up again because of the growing demand. EXPECTED DEVELOPMENT OF THE SOLAR POWER MARKET Despite the negative economic situation market analysts are predicting a positive development of the solar market. For the year 2009 the European Photovoltaic Industry Association (EPIA) for example is expecting worldwide growth of some 25 per cent to 7.0 (previous year: 5.5) GW. Analysts at Barclays additionally estimate that about 70 per cent of the worldwide demand for solar power products will be accounted for by on-roof systems and only about 30 per cent by open-field systems. In a comparison with the previous year this would constitute a growth rate of 40 per cent in the roof systems segment and a decline of some 53 per cent in the segment of open-field systems. The trigger of this shift is assumed to be the more difficult financing environment for large-scale projects due to the financial crisis as well as the decline in the Spanish business in large-scale generating plants. For Germany the Swiss bank Sarasin forecasts a newly installed output capacity of some 1,870 (previous year: 1,500) MW for the year Analysts of Barclays Bank additionally assume that the growing

26 INTERIM GROUP MANAGEMENT REPORT 22 skepticism of private investors vis-à-vis conventional financial products will develop into a driver for the demand for solar power products. Furthermore, declining prices in the module field may be expected to further stimulate buying interest in the course of the year. These factors may also stimulate the demand in other European markets like Italy, France, Czech Republic and Belgium. In the USA it is safe to assume that there will be dynamic growth for the solar power market mainly in the second half of the year. Many prospects are currently still waiting when and in which form the new, additional incentive systems announced by the new government will be implemented so as to make their investments into solar systems even more profitable. With this expected growth potential the US market may develop into one of the most rapidly growing markets starting in the second or third quarter of the year Accordingly, the Sarasin Bank expects a doubling of the newly installed output capacity in the USA to around 680 (previous year: 342) MW. In March Japan s Prime Minister also announced further incentives for the installation of solar systems within the framework of the Japanese economic stimulus package which is to be approved by the end of April This is why an increasing demand is likely in the country as of the third quarter additionally reinforced by the declining module prices. In China the first effects of the announced stimulus program are also expected to materialize in the second half of the year. However, the necessary structures first have to be established in the market. Last year China was still among the smaller markets with a newly installed output capacity of 30 MW (mainly off-grid). FUTURE BUSINESS DEVELOPMENT INTERNATIONAL PRODUCTION FACILITIES TO BE FURTHER EXPANDED. We will use the expected growth of the international solar markets to further expand our production sites and capacities. Thus, we are planning to reach a nominal annual cell and wafer capacity of 250 MW at our US location in Hillsboro in Our new logistics and production expansion building will already be finished for us to move in by the end of In Camarillo/USA we intend to produce our new 6-inch mono-module that we already presented to a trade audience starting in the second half of the year. With this new type of module we have not only optically extended our product range. The larger mono-module also offers our customers an even higher module performance class. Especially in the growing US market, where traditionally mono-modules are preferred, we are opening up additional market segments for ourselves. At our German production location in Freiberg we will also push ahead with our expansion according to plan. As a result we can boost our wafer capacity to 750 MW by the end of Already in the second quarter the topping-out ceremony for the expansion of the Eastern Industry Park is to take place. From today s point of view we will unlike competitors not have to take any rationalization measures regarding employees. On the contrary: For the expansion of our production we will have to hire new staff.

27 INTERIM GROUP MANAGEMENT REPORT EXPECTED SALES AND EARNINGS DEVELOPMENT 23 We will continue to increase our production by 20 to 30 per cent on a cash flow basis at favourable terms and conditions in We will thus retain our growth pace. In parallel, we will invest in research and the further development of the SolarWorld brand. Here, too, our strong equity ratio and liquidity will provide us with a major competitive edge. Against the backdrop of the fall in prices required on the path to achieving grid parity and based on the assumption that the macroeconomic development will stabilise in the second half of 2009, we are planning to generate sales over previous year s level with 1 billion as our next stage s goal. Wafer volumes from long-term contracts can shift here towards processing for the manufacture of solar modules or kits. Our consolidated net income for the year will depend on the extent to which the decline in prices can and will have to be offset on the cost side. OVERALL MANAGEMENT STATEMENT ON THE EXPECTED DEVELOPMENT OF THE GROUP We expect to continue to grow, also in a more difficult market environment. Based on our established positioning in the market, our fully integrated value chain as well as our good capital basis we are less affected by the still ongoing financial crisis than other companies. Our core business is the module and solar kit business for solar roof systems. The financing of these projects for private customers is not jeopardized. What is more, product quality and the reputation of the manufacturer are getting more and more important for the buying and financing decision not only for private customers but also in the large-scale project business. Following our strategy we will further strengthen our claim on quality leadership thus making use of the demand in our core markets as well as in new growth regions.

28 870.5 m EQUITY AS OF MARCH 31, 2009

29 CONSOLIDATED INTERIM FINANCIAL STATEMENTS CONSOLIDATED INTERIM FINANCIAL STATEMENTS 30 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

30 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 26 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 08 CONSOLIDATED INCOME STATEMENT FIRST QUARTER 2009 in k 1st quarter st quarter Revenues 176, , Changes in inventories of finished goods and work in progress 71,736 7, Own work capitalized Other operating income 9,738 9, Cost of materials -150,728-87, Personnel expenses -26,179-19, Amortization and depreciation -14,710-11, Other operating expenses -27,357-22, Operating result from continued operations 39,207 42, Financial result -4,241-13, Income from continued operations before taxes on income 34,966 29, Taxes on income -11,183-7, Income from continued operations 23,783 21, Income after taxes from discontinued operations 0 12, Consolidated net income , Earnings per share a) Weighted average number of shares outstanding (in 1,000) 111, ,720 b) Income from continued operations (in ) c) Income from discontinued operations (in ) d) Consolidated net income (in )

31 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 09 CONSOLIDATED BALANCE SHEET AS OF MARCH 31, Assets in k A. Noncurrent assets 735, ,884 I. Intangible assets 33,870 33,861 II. Property, plant and equipment 636, ,406 III. Investments measured at equity 31,637 30,544 IV. Deferred tax assets 33,810 27,073 B. Current assets 1,435,632 1,453,166 I. Inventories 604, ,766 II. Trade receivables 104,228 71,219 III. Current income tax assets 3, IV. Other receivables and assets 32,259 21,164 V. Other financial assets 360, ,414 VI. Liquid funds 329, ,689 C. Assets held for sale 1, ,173,123 2,120,622 Equity and Liabilities in k A. Equity 870, ,075 I. Subscribed capital 111, ,720 II. Capital reserve 296, ,489 III. Other reserves 11,995 6,311 IV. Accumulated profits 450, ,555 B. Noncurrent liabilities 1,095,491 1,093,559 I. Noncurrent financial liabilities 669, ,406 II. Accrued investment grants 76,580 78,842 III. Noncurrent provisions 23,532 23,242 IV. Other noncurrent liabilities 300, ,485 V. Deferred tax liabilities 24,654 23,584 C. Current liabilities 207, ,988 I. Current financial liabilities 35,733 24,137 II. Trade payables 78,537 70,413 III. Income tax liabilities 18,213 20,219 IV. Current provisions 6,974 5,716 VI. Other current liabilities 67,633 65,503 2,173,123 2,120,622

32 CONSOLIDATED INTERIM FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FIRST QUARTER 2009 in k 1st quarter st quarter 2008 Consolidated net income 23,783 34,663 Other comprehensive income Net losses from cash flow hedges -9,214-3,019 Exchange differences on translating foreign operations 11,988-9,971 Net losses from available-for-sale financial assets -6 0 Income tax relating to components of other comprehensive income 2, Other comprehensive income for the period, net of tax 5,684-12,204 Total comprehensive income for the year 29,467 22, CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Other reserves in k Subscribed capital Capital reserve Exchange reserve IAS 39 reserve Accumulated profits Total As per Dec. 31, , ,489-13,482 3, , ,546 Total comprehensive income -9,971-2,233 34,663 22,459 As per March 31, , ,489-23,453 1, , ,005 Total comprehensive income 20,330 8, , ,711 Dividend distribution -15,641-15,641 As per Dec. 31, , ,489-3,123 9, , ,075 Total comprehensive income 11,988-6,304 23,783 29,467 As per March 31, , ,489 8,865 3, , ,542

33 CONSOLIDATED INTERIM FINANCIAL STATEMENTS 12 CONSOLIDATED CASH FLOW STATEMENT 29 in k 1st quarter st quarter 2008 Income before tax 34,966 42,718 + Amortization and depreciation 14,710 11,957 + Financial result 4,241 13,157 + Loss from retirement of assets Profit from the sale of consolidated companies 0-13,013 - Reversal of accrued investment grants -2,704-2,114 = Cash flow from operating result 51,219 52,855 - Increase of prepayments and customer advances (balance) -1,203-3,765 - Increase of inventories (devoid of prepayments) -69,027-6,604 -/+ Increase/decrease of securities (categorized as trading) 0 14,208 -/+ Increase/decrease of other net assets -50,722 39,783 = Cash flow from operating result and changes in net assets -69,733 96,477 + Interest received 4,008 2,600 - Taxes on income paid (balance) -18,017-18,182 = Cash flow from operating activities -83,742 80,895 - Cash outflow for asset investments -67,852-50,168 + Cash inflow from investment grants 0 2,458 + Cash inflow from the disposal of assets 4 6,976 + Cash inflow from financial investments 41, ,116 + Cash inflow from the disposal of consolidated companies 5,775 12,126 = Cash flow from investment activities -20, ,508 - Cash outflow for redemption of borrowings -1,866-3,128 - Interest paid -8,027-7,224 = Cash flow from financing activities -9,893-10,352 +/- Net changes in cash and cash equivalents -113, ,051 +/- Exchange rate effects on cash and cash equivalents 972-1,378 + Cash and cash equivalents at the beginning of the period 431, ,580 = Cash and cash equivalents at the end of the period 318, ,253

34 CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTES 30 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. ACCOUNTING ACCORDING TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) Pursuant to Article 4 of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards SolarWorld AG is obliged to apply the international accounting standards adopted in accordance with Articles 2, 3 and 6 of said Regulation. These interim financial statements as per March 31, 2009 have accordingly also been prepared in accordance with IAS 34. These condensed consolidated interim financial statements have not been subjected to a review or audit by an auditor. 2. ACCOUNTING AND VALUATION METHODS In preparing the interim financial statements and establishing the comparative figures for the previous year basically the same consolidation principles and accounting and valuation methods as in the 2008 consolidated financial statements have been applied. A detailed description of these methods has been published in the Notes to the 2008 Annual Report which can be reviewed and downloaded from the Internet under The following standards have been applied for the first time in financial year 2009: IAS 1 Presentation of Financial Statements (revised) requires separate presentation of other changes in equity and changes in equity resulting from transactions with equity holders in their capacity as equity contributors. In addition, the standard introduces a presentation of the total comprehensive income for the period. In executing the presentation option of IAS 1.81, SolarWorld AG presents the items of income and expense recognized in a period in two statements: a statement displaying components of profit or loss (separate income statement) and a second statement beginning with profit or loss and displaying components of other comprehensive income (statement of comprehensive income). In this regard, the presentation of the consolidated statement of changes in equity as well as the figures of respective prior periods have been adjusted. As per January 1, 2009, IFRS 8 replaces IAS 14 Segment Reporting. Contrary to prior year, in application of the full management approach, only two reportable operating segments have been identified: Production and Trade. Background is the internal organizational, reporting as well as controlling structure predominating SolarWorld AG which is primarily divided into the areas production and trade. The operating segment Production comprises the worldwide production of solar modules taking into account the full value chain as well as research and development. The operating segment Trade includes the worldwide sales activities regarding solar modules. Prior year figures have been adjusted accordingly. The disclosed eliminations refer to regular consolidation entries as well as eliminations with regard to intersegment tolling transactions.

35 CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTES The revised IAS 23 requires capitalization of borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset. It has to be applied prospectively from January 1, 2009 on. Therefore, the application of the revised standard is not obligatory regarding qualifying assets, which have been capitalized before January 1, According to IAS 23.5 a qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. The capitalization of borrowing costs presumes that they are caused by the production process and finally contribute to enabling the latter. SolarWorld AG capitalizes directly attributable borrowing costs as part of the acquisition or production costs if the production of intangible assets or property, plant and equipment regularly requires at least one year GROUP OF CONSOLIDATED COMPANIES The group of consolidated companies essentially consists of the following subsidiaries: Deutsche Cell GmbH, Freiberg/Saxony, Germany Deutsche Solar AG, Freiberg/Saxony, Germany Go!Sun GmbH & Co. KG, Bonn, Germany SolarFactory GmbH, Freiberg/Saxony, Germany SolarWorld Africa (Pty.) Ltd., Johannesburg, South Africa SolarWorld Asia Pacific PTE Ltd., Singapore, Singapore SolarWorld California LLC, Camarillo, USA SolarWorld Ibérica SL, Madrid, Spain SolarWorld Industries America LLC, Camarillo, USA SolarWorld Industries America LP, Camarillo, USA SolarWorld Industries Services LLC, Camarillo, USA SolarWorld Industries Deutschland GmbH, Bonn, Germany SolarWorld Industries Schalke GmbH, Gelsenkirchen, Germany SolarWorld Innovations GmbH, Freiberg/Saxony, Germany SolarWorld Industries America Inc. (formerly SolarWorld Properties Inc.), Hillsboro, USA Sunicon AG, Freiberg/Saxony, Germany Directly or indirectly SolarWorld AG holds a 100 per cent stake in all these companies. 4. MATERIAL EVENTS SUBSEQUENT TO THE END OF THE INTERIM PERIOD After March 31, 2009 there were no events of particular importance.

36 CONSOLIDATED INTERIM FINANCIAL STATEMENTS CONSOLIDATED SEGMENT REPORTING FIRST QUARTER 2009 in million Production Trade Eliminations Consolidated Revenues External revenues Inter-segment revenues Total revenues Result from continued operations Segment result Neutral result 0 Operating result (EBIT) 39 Financial result -4 Taxes on income -11 Result from continued operations CONSOLIDATED SEGMENT REPORTING FIRST QUARTER 2008 in million Production Trade Eliminations Consolidated Revenues External revenues Inter-segment revenues Total revenues Result from continued operations Segment result Neutral result 4 Operating result (EBIT) 43 Financial result -13 Taxes on income -8 Result from continued operations 22