Letter from the Chairman

Part 1: Principal SolarWorld impacts on sustainability and consequences for stakeholders

The sun’s power is available to everyone around the planet. In terms of human time, radiation from the sun offers an infinite source of energy. Creating the systems to convert that energy only requires a fraction of the energy which the system will generate during its life cycle:

The Potential: Energy creates the basis for development

Using it poses no dangers, and production is reliable. Solar energy in conjunction with other renewable sources is the answer to the global energy shortage and advancing climate change. SolarWorld exerts a direct influence on the progress of solar energy and, as a result, on the lives of millions of people around the world.

The impact of SolarWorld AG

Possible consequences for stakeholders

Section 2: Impact of sustainability trends, risks and opportunities on the long-term development and financial performance of SOLARWORLD AG

Information on the corporate risks, corporate opportunities, targets achieved for 2009 and targets for 2010+ as well as governance mechanisms is provided in the management report. Report on expected development with its major opportunities and risks Statement on the corporate governance of the company Target achievement 2009 and targets 2010+

Awards and distinctions received in the reporting period:

Germany’s best employers 2009 (Great Place to Work Institute Germany), 55th place (previous year: 57th)

SolarWorld took part in the study for the second time, achieving a solid 55th place. The list of “Germany’s best employers” was determined on the basis of standardized assessment criteria (the employee survey from the Great Place to Work Trust Index and a cultural audit among HR staff). Participation is voluntary. Any German or foreign company, or any public or private organization, employing at least 50 staff in Germany is entitled to take part.

Best Annual Reports (manager magazin), 2nd place (TecDAX)

In the annual awards by manager magazin for the best company reports, we defended our second place in the TecDAX. Following a third place in 2007 and seventh in 2006, we have secured this rank for ourselves since 2008. The jury, chaired by Prof. Jörg Baetge from Münster University as its scientific expert, checked the annual reports of the largest German companies in the categories contents, style and language.

Deloitte Technology Fast 50 Award (Deloitte), 34th place (previous year: 17th)

In 2009 SolarWorld AG was once again among the fastest growing technology companies in Germany. On 21st October, following 350.3% growth over 5 years, the Group received the Technology Fast 50 award in Hamburg from business consultants Deloitte, marking us as one of 50 enterprises in the fields of technology, communication and life science. In granting this prize in 2009, the jury honoured the cumulative growth in sales over the last five fiscal years and a unique tale of growth and success. The award was presented in cooperation with the magazine Capital, Deutsche Börse AG and the German Society of Professional Investors (DVFA).

IÖW/Future Ranking of SME Sustainability Reports, 2nd place (SME with a headcount of > 250)

2009 was the first year that the Berlin Institute Ecological Economy Research (IÖW) and future e.V. carried out their ranking of small and medium-sized enterprises (SME). SolarWorld won 2nd place in the category of SMEs with a headcount of more than 250. The patrons were the German Minister Olaf Scholz and Dr. Volker Hauff, Chairman of the country’s Sustainable Development Council.

Junge Karriere, Fair Company

SolarWorld is one of 1,400 companies identified by Junge Karriere, the monthly magazine for people setting out on a career, as a “Fair Company”. Junge Karriere defines a Fair Company as one which does not replace full-time employees by interns or other unpaid or barely paid trainees/guests students who are supposed to be there to gain work experience, does not fob off young university graduates with an internship when they have applied for a proper job, does not lure interns with the vague prospect of a full-time job down the line, but does offer work experience above all to help youngsters make the right choices during their initial training, and pays interns an adequate financial compensation for their work.