REC Silicon

Investor Presentation • Nov 7, 2024

Third Quarter 2024 Presentation

Kurt Levens, CEO Jack Yun, CFO

Disclaimer

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC Silicon ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC Silicon ASA's businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although REC Silicon ASA believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. REC Silicon ASA makes no representations or warranties, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither REC Silicon ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

Information contained herein will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

REC Silicon ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

A SILICON MATERIALS COMPANY PROVIDING ENABLING MATERIALS FOR THE GREEN ENERGY TRANSITION

Agenda

• › Highlights and Updates
• › Moses Lake Facility Update
• › Butte Operations
• › Silane for Silicon Anode Material
• › Financials
• › Market Outlook
• › Summary

Highlights and Updates

• › Revenues of \$33.8M
• › EBITDA -\$42.7M primarily due to startup costs at Moses Lake
• › End of quarter cash balance of \$23.6M
• › Delay of qualification of Moses Lake polysilicon
• › Moses Lake operation rate reduced
• › Silane shipments affected by PV slowdown and trade concerns

MOSES LAKE FACILITY UPDATE

Timeline of the FBR Polysilicon Restart

2023, Nov 30	2024, May 2		2024, Sep 13	2024, Oct 21
• FBR restart operations have officially commenced • Expected Delivery in Q1 2024	• Improvement of Key Qualities • Expected Delivery in Q2 2024	2024, Jun 20	• Discussion on Specification Modification (conditional upon qualification)	• Customs procedures delay full release of qualification material
2024, Mar 25	•	Initial Project construction and investments expected to be completed by the end of August	• Expected Delivery in Oct. 2024 (after qualification)	• Working with customer for new timing
• The first shipment of polysilicon is expected to be delayed to early Q2 2024	• •	Additional cleanup time is needed for further impurity removal Expected Delivery in Sep. 2024

Internal improvement history

2024, 1Q

• Reduced timeline for additional commissioning of product handling processes
• Ongoing cleanup efforts for product quality improvement

2024, 2Q

• Further improvements in product handling equipment for additional impurity removal
• Metal purity is continuously being improved

2024, 3Q

• Confirmation of improvements in most quality items
• Discussions with the customer regarding specification modification

Current Operations Status

› Operations

• Operating rate adjusted to 15%
• Turn down will affect ramp timing
• Facility will not be at 100% by year end

› Qualification and Quality

• Unknown timing and results at present
• Focusing on quality improvement modifications

› Considerations/Actions

• Working to determine new timeline
• Will communicate further updates when available
• Evaluating further financing requirements
• Negotiation for another qualification if unsuccessful

BUTTE OPERATIONS

Silicon Gases

• › Silicon gas sales
  • 515 MT shipped in Q3 2024
• › PV and FPD demand affecting volume
  • Lower utilization rates and suspended facilities
  • Trade issues and concerns affecting SE Asia
  • Lower utilization and closure of specific FPD facilities
• › Semiconductor market
  • Demand for silicon gases apart from silane is on track
  • Silane demand is up compared to 2023 but still lower than prior run rate
  • Concerns over non-AI memory related silane demand over next few quarters
  • Geopolitical issues continue to cause adjustments in purchasing strategies

Silicon Gas Sales Volumes (MT)

• › Semiconductor grade polysilicon
  • 108 MT shipped in Q3 2024 vs. 108 MT in Q2 2024
• › Finishing the processing of material from inventory
  • Target is still to clear finished goods inventory by end of the year
  • Restructuring activities still ongoing
  • Minimal reactors for gases characterization will continue

Semiconductor Grade Polysilicon Sales Volumes (MT)

High-Grading Butte Portfolio for Growth

SILANE FOR SILICON ANODE MATERIAL

Silicon Anode

• › Signed multi-year contract with Sila Nanotechnologies to start in 2025
• › REC supplies at least six companies
• › Discussions continue with companies about potential supply modes and cooperation

Silane Gas Set to Boost EV Battery Performance

1

FINANCIALS

Group Earnings

	(Millions USD)		Q3 2024 Q3 2023	2023	Q2 2024
› Revenues \$33.8M
- Siemens polysilicon sales volume decreasing as	Semiconductor Materials	\$ 32.8	\$ 36.6	\$ 140.6	\$ 36.4
planned	Solar Materials	1.0	0.1	0.4	1.3
- Silicon gas sales volume decreased by 21.3% vs.	Other	0.0	0.1	0.2	0.0
Q2-24	Revenues	\$ 33.8	\$ 36.7	\$ 141.1	\$ 37.7
› EBITDA (\$42.7M)	Semiconductor Materials	\$ 0.4	\$ 6.1	\$ 14.0	\$ 7.0
- Impacts:	Solar Materials	(36.3)	(16.0)	(64.8)	(36.6)
Restart activities	Other	(6.8)	(8.0)	(29.7)	(8.6)
•	EBITDA	\$ (42.7)	\$ (17.8)	\$ (80.5)	\$ (38.2)
› Semiconductor materials segment	EBITDA Margin	(126.4%)	(48.5%)	(57.0%)	(101.3%)
- EBITDA of \$0.4M
› Solar materials segment	Polysilcon Production (Granular)	1,390 MT	NA	NA	1,391 MT
- EBITDA of (\$36.3M)	Polysilicon Sales (Granular)	0 MT	NA	NA	106 MT
	Polysilicon Production (Siemens)	142 MT	279 MT	1,101 MT	256 MT
› Other	Polysilicon Sales (Siemens)	169 MT	199 MT	745 MT	187 MT
- Net expense of \$6.8M
	Silicon Gas Sales	515 MT	754 MT	3,075 MT	654 MT

Semiconductor Materials Segment

• › Revenues \$32.8M
  • 9.9% decrease in revenues vs. Q2-24
  • Polysilicon sales volume decreasing as planned
  • Silicon gas sales volume 21.3% decrease vs. Q2-24
  • Silicon gas sales price 6.9% increase vs. Q2-24
• › EBITDA contribution \$0.4M
  • \$6.6M decrease in EBITDA contributed vs. Q2-24
  • Scheduled maintenance shutdown within the quarter

Cash Flows

• › September 30, 2024 cash balance \$23.6M
  • \$ . decrease in cash during Q '
• › Cash flows from operating activities (\$43.0M)
  • (\$42.7M) EBITDA
  • \$5.3M working capital
    • \$3.1M decrease in inventories
    • \$1.9M decrease in receivables
    • \$0.4M increase in payables
  • (\$5.5M) interest items
    • (\$5.9M) interest paid
    • \$0.3M interest received
  • (0.1M) other items
• › Cash inflows from investing activities (\$14.0M)
  • (\$15.4M) capital expenditures
  • \$1.4M sales of non-core asset
• › Cash flows from financing activities (\$43.0M)
  • \$45.0M proceeds from borrowing
  • (\$2.0M) payment of lease liabilities

› Nominal net debt \$396.4M

• \$44.8M increase during Q3-24
  • \$45.0M increase in term loans
  • (\$0.2M) changes in lease liabilities
• › Nominal debt \$372.8M
  • \$58.9M increase during Q3-24
    • (\$14.1M) decrease in cash
    • \$44.8 change in nominal debt

Debt Maturity Profile

(USD Million)

MARKET OUTLOOK

Semiconductor Market – Long Term still intact

Growth returning to the semiconductor industry US investments targeting improved resilience

• › Generative AI is the big driver
• › 17.5% growth in billings YTD as of August, above forecast for 2024
• › Market set to reach USD 1 trillion by 2030

• › Enormous investments in US semiconductor value chain
• › Targeting reduced vulnerability and enhanced capture of value added from expansion in critical equipment and materials
• › Increased potential for silicon gas use in advanced nodes and AI-chips

PV Market

• › Solar installation demand softening
  • China exports declined
  • All regions experienced lower utilization
  • Trade issues causing uncertainty (SE Asia)
• › Chinese polysilicon production decreasing
  • Trying to control inventory and balancing demand
  • Maintenance shutdowns (for some producers)
  • Expecting rationalization in the industry
• › Seeing increased discussion in US on reshoring
  • Additional announcements on capacity after Q2 cancellations
  • Includes wafer and cell

November 2024 Estimates
Sector	Company	Region	Annual Capacity	Monthly Production Output	Monthly Capacity	UR
Total Mono Cell		Outside China	92,510	7,709	3,527	45%
Mono Cell	Company A	Thailand				0%
Mono Cell	Company B	Vietnam				35%
Mono Cell	Company C	Malaysia				80%
Mono Cell	Company D	Thailand				50%
Mono Cell	Company E	Thailand				40%
Mono Cell	Company F	Cambodia				60%
Mono Cell	Company G	Malaysia				75%
Mono Cell	Company H	Vietnam				50%
Mono Cell	Company I	Vietnam				0%
Mono Cell	Company J	Thailand				100%
Mono Cell	Company K	Taiwan				30%
Mono Cell	Company L	Vietnam
Mono Cell	Company M	Taiwan
Mono Cell	Company N	Malaysia
Mono Cell	Company O	Taiwan
	Company P	Malaysia

Source: REC Market Research and

Government Activity Update – Supportive Environment Continues

SUMMARY

Summary

• › Moses Lake Facility focus
  • Product quality improvement
  • Minimal operation rate
• › Qualification timing is uncertain
• › PV production utilization remains very low affecting sales
• › Butte restructuring progressing
• › Silane for silicon anode contract signed

Thank you.

REC Silicon ASA Q4 2024 February 2025

REC Silicon ASA

Lysaker Torg 5, 3 etg. PO Box 63 1324 Lysaker Norway

Phone +47 407 24 086

About REC Silicon

REC Silicon is a global leader in silane based high purity silicon materials. We combine 40 years experience and best-in-class proprietary technology to deliver on customer expectations. Our two U.S. based plants have a combined production capacity of more than 30,000 MT of high purity silane gas. Our Signature Silane® based products are used in everyday quality of life technologies, emerging technologies, cutting edge power and memory devices, high-voltage transmission, as well as renewables. REC Silicon is headquartered in Lysaker, Norway and listed on the Oslo stock exchange under the ticker: RECSI.

www.recsilicon.com