Common use of Segment Reporting Clause in Contracts

Segment Reporting. According to IFRS 8, an operating segment, based on the internal organization structure, is a component of an entity that engages in business activities from which it may earn revenues and incur expenses, whose operating results are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance and for which discrete financial information is available. Sovello’s business activities are concentrated on the manufacture and sale of a single product (solar modules) at a single location (Bitterfeld-Wolfen). Within these activities there are no distinguishable enterprise components. The controlling as well as the internal reporting takes place on the level of the Company. Therefore, no different operating segments are identifiable. Segment reporting is not required. Annex 1.5 / 10