The objective of the control and risk management system regarding the (group) reporting process is to make sure that the reporting is uniform and in line with the legal requirements, the generally accepted accounting principles and the International Financial Reporting Standards (IFRS) g as well as internal group guidelines so as to give recipients of the annual financial statements true and reliable information. To this end SolarWorld has principles, processes and measures whose essential characteristics can be described as follows:

Within SolarWorld AG and/or the SolarWorld Group there is a clear-cut management and enterprise structure in which the various group companies enjoy a large measure of independence and individual responsibility. On this basis the functions of Finance and Accounting, Controlling and Investor Relations essential to the reporting process are controlled right across the group by appropriate departments at SolarWorld AG.

The functions and responsibilities of Finance and Accounting, Controlling and Investors Relations are clearly separated and allocated with mutual control processes assuring a continuous exchange of information.

The basis of the internal control system is provided by precisely defined preventive and monitoring control mechanisms like systematic and manual coordination processes, predefined approval processes, the separation of functions and the adherence to guidelines.

The financial systems used are protected against unauthorized access by appropriate installations in the IT system. Standard software is used as far as possible.

Uniform reporting is guaranteed in particular by reporting guidelines that apply group-wide and by a standardized reporting format. The guidelines and the reporting format are regularly reviewed and updated by members of the group accounting department.

The group companies prepare their financial statements locally and communicate these in the prescribed format to group accounting. They are themselves responsible for adherence to the group reporting guidelines as well as the proper and timely management of all reporting-related processes and systems. In this context they are fully supported by group accounting throughout the entire reporting process.

Adherence to the reporting guidelines as well as to time and process requirements are monitored by group accounting. In addition to systems technology controls there are manual controls and analytical audit procedures. Here the appropriate control environment is taken as much into consideration as the relevance of certain reporting facts with regard to the contents of the financial statements.

For special technical questions and complex reporting issues group accounting acts as the central interlocutor. If required external experts (auditors, qualified accounting specialists, etc.) will be consulted.

On the basis of the data supplied by the group companies consolidation will take place centrally in group accounting. At least a four-eyes-principle will apply at each level.

Independently of group accounting a monthly analysis of target/actual and actual/actual deviations is conducted by group controlling as a result of which an examination of major or implausible changes takes place at an early point in time.