EARNINGS, FINANCE AND ASSET SITUATION

Earnings situation

Revenue and earnings development

SolarWorld AG was able to use the dynamism of the international solar markets to expand its business significantly. In the second quarter of 2010 we increased wafer and solar module shipments by 90 percent to 237 (Q2 2009: 125) MW. In the first half of 2010 sales rose in comparison with the first half of 2009 by 58 percent to 377 (H1 2009: 239) MW.

Revenues in the second quarter of 2010 grew by 68.6 percent and € 155.7 million respectively to € 382.8 million (Q2 2009: € 227.1m). In comparison with the first half of 2009 (€ 403.4m) revenues increased by 50.8 percent and € 205.0 million respectively to € 608.4 million.

The group-wide rate of international business amounted to 32.6 (H1 2009: 38.1) percent. This is attributable especially to the high demand for SolarWorld products in Germany.

Earnings before interest and taxes (EBIT) increased in the second quarter of 2010 by € 10.9 million to € 56.4 million (Q2 2009: € 45.5m). In the first half of 2010 EBIT amounted to € 81.2 million (H1 2009: € 83.3m). Earnings before interest, taxes, depreciation and amortization (EBITDA) went up in the second quarter of 2010 by € 16.7 million to € 77.8 million (Q2 2009: € 61.1m). In the first half of 2010 EBITDA could be increased by € 8.1 million to € 121.7 million. The group-wide EBIT margin in the second quarter was 14.7 (Q2 2009: 20.1) percent; in the first half of 2010 it was 13.3 (H1 2009: 20.7) percent.

The financial result improved in comparison with the second quarter of 2009 by € 2.2 million to € -7.9 million (Q2 2009: € -10.1m). The financial result of the first half of 2010, on the other hand, was significantly marked by the increase of the long-term financial debts and amounted to € -20.9 million (H1 2009: € -12.9m).

Consolidated net income rose in the second quarter of 2010 by € 1.6 million to € 29.5 million (Q2 2009: € 27.9m). In the first half of 2010 consolidated net income amounted to € 34.8 million (H1 2009: € 51.7m).