REC Silicon

Investor Presentation • Aug 8, 2024

Second 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 Restart Update
• › Operations
• › Silane for Silicon Anode Material
• › Financials
• › Government Initiatives
• › Summary

Highlights and Updates

• › Revenues of \$37.7M
• › PV industry oversupply and trade actions challenging Silane volumes
• › EBITDA loss of \$38.2M due to startup costs at Moses Lake
• › June 30, 2024, cash balance of \$37.6M
  • Cash decrease of \$63.5M due to Moses Lake restart
• › Butte polysilicon production stopped at end of quarter
• › Moses Lake product handling system impurity mitigation advancing

MOSES LAKE RESTART UPDATE

Moses Lake Operating Update

OPERATIONS

Silicon Gases

• › Silicon gas sales
  • 654 MT shipped in Q2 2024
  • Silicon gas sales price 16.5% increase vs. Q1 2024
• › PV Silane sales declined
  • Chinese overcapacity affecting utilization
  • New AD/CVD against Southeast Asia countries
  • Factory utilization lower inside/outside China
• › Semiconductor market
  • Silane gas sales stabilized to most Semi applications
  • Other silicon gas products are recovering
  • New fabrication capacity is mostly still in construction/startup

Silicon Gas Sales Volumes (MT)

Semiconductor Grade Polysilicon

• › Semiconductor grade polysilicon
  • 108 MT shipped in Q2 2024 vs. 134 MT in Q1 2024
  • Average polysilicon price 19.7% decrease vs. Q1 2024
    • Product mix change vs. Q1 2024
• › Exit plan continues as scheduled
  • Float zone products to be cleared by end of the year
  • CZ semiconductor and PV poly sales affected by overcapacity and inventory

Semiconductor Grade Polysilicon Sales Volumes (MT)

PV Polysilicon

• › Solar installation demand estimated over 500 GW for 2024
  • Markets being impacted by higher installation and finance costs
  • Inventories throughout the value chain
  • New AD/CVD case impacting SE Asia factory utilization
• › Factory utilization has decreased
  • Global inventory of polysilicon, wafers and cells high
  • Overcapacity in the value chain causing low prices
  • China-owned companies utilizing China factories over SE Asia factories
  • Affecting demand for both polysilicon and silane

N-Type Polysilicon USD/KG

Source: PV Insights

SILANE FOR SILICON ANODE MATERIAL

REC North American Silane Supply is Sufficient

	12/24	2025-2026	2028	2030
	Total Capacity(1)	"As is" for Anode Material(2)	Debottleneck Capability(3)	Further Brownfield Expansion(4)
Moses Lake	24,000	2,400	2,500-3,000	20,000-40,000 MT
Butte	7,400	5,600	400	20,000-40,000 MT
Total	31,400	8,000	2,900-3,400	40,000-80,000 MT
		10,900	+ 11,400

1) As of 12/31/24

• 2) Available to contract, relatively minimal investment amount/time
• 3) Through optimization and capital efficient investment
• 4) 488 acres in Moses Lake and 240 acres in Butte

Note: Ramp and option dates are commitment timing dependent

The Case for REC Silicon Silane

EXPERIENCE

› 40+ years experience › 9 silane plants constructed

› 40,000+ bulk container movements

› 80+ bulk sites supplied

• › 3 continents, 19 countries, 15 states
• › Next generation improvements for new plants

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VOLUME AVAILABILITY/FLEXIBILITY

• › Supply modes flexible (bulk containers, pipeline, stand alone plant)
• › Volume now up to 8,000 MT in 18 months
• › USA locations reliable trade partner
• › Room for additional plants
• › Self contained process can locate anywhere

RELIABILITY/CONTINUITY

• › 4 separate operating units
• › 2 different locations
• › 4 separate loading facilities
• › 380+ bulk containers
• › Zero runouts at customer locations
• › Multi-layered storage capacity

FINANCIALS

Group Earnings

	(Millions USD)	Q2 2024	Q2 2023	2023	Q1 2024
› Revenues \$37.7M
- Siemens polysilicon sales volume increase by 3.2% vs.	Semiconductor Materials	\$ 36.4	\$ 36.6	\$ 140.6	\$ 42.0
Q1-24	Solar Materials	\$ 1.3	0.1	0.4	0.2
	Other	\$ 0.0	0.1	0.2	0.0
- Silicon gas sales volume decrease by 23.0% vs. Q1-24	Revenues	\$ 37.7	\$ 36.7	\$ 141.1	\$ 42.1
› EBITDA (\$38.2M)
- Impacts:	Semiconductor Materials	\$ 7.0	\$ 10.1	\$ 14.0	\$ 2.8
	Solar Materials	(36.6)	(11.4)	(64.8)	(26.8)
Restart activities •	Other	(8.6)	(7.2)	(29.7)	(7.5)
› Semiconductor materials segment	EBITDA	\$ (38.2)	\$ (8.5)	\$ (80.5)	\$ (31.5)
- EBITDA of \$7.0M	EBITDA Margin	(101.3%)	(23.0%)	(57.0%)	(74.7%)
› Solar materials segment
- EBITDA of (\$36.6M)	Polysilcon Production (Granular)	1,391 MT	NA	NA	460 MT
	Polysilicon Sales (Granular)	106 MT	NA	NA	NA
› Other	Polysilicon Production (Siemens)	256 MT	302 MT	1,103 MT	256 MT
- Net expense of \$8.6M	Polysilicon Sales (Siemens)	187 MT	181 MT	745 MT	181 MT
	Silicon Gas Sales	654 MT	849 MT	3,075 MT	850 MT

Semiconductor Materials Segment

• › Revenues \$36.4M
  • 13.3% decrease in revenues vs. Q1-24
  • Polysilicon sales volume 3.2% increase vs. Q1-24
    • Semiconductor grade polysilicon decrease by 19.6%
  • Polysilicon sales price 19.7% decrease vs. Q1-24
  • Semiconductor grade polysilicon 0.3% decrease vs Q1-24
  • Silicon gas sales volume 23.0% decrease vs. Q1-24
  • Silicon gas sales price 16.5% increase vs. Q1-24
• › EBITDA contribution \$7.0M
  • \$4.2M increase in EBITDA contributed vs. Q1-24
• › Q3 scheduled maintenance turnaround

Cash Flows

• › June 30, 2024 cash balance \$37.6M
  • \$63.5M decrease in cash during Q2'24
• › Cash flows from operating activities (\$31.5M)
  • (\$38.2M) EBITDA
  • \$9.5M working capital
    • (\$6.7M) increase in inventories
    • \$2.9M decrease in receivables
    • \$13.3M increase in payables
  • (\$2.6M) interest items
  • (\$7.4M) interest paid
  • \$0.8M interest received
  • \$4.7M interest capitalized
  • (\$0.7M ) guarantee fees paid
  • (\$0.2M) other items
• › Cash inflows from investing activities (\$30.2M)
  • (\$30.4M) capital expenditures
• › \$0.2M sale of surplus equipment
  • Cash flows from financing activities (\$1.9M)
• › (\$1.9M) payment of lease liabilities

›	Nominal net debt \$313.9M
	- \$62.0M increase during Q2-24		(USD Million)
	(\$63.5M) decrease in cash •
	\$1.5M change in nominal debt •	250
›	Nominal debt \$351.5M
	- \$1.5M decrease during Q2-24	200
	\$1.5M changes in lease liabilities •
›	Cash position	150
	- Working on bridge financing
	- Prepayment \$50M when the first shipment is made	100
›	Capex spending declining 2H 2024
	- Still on track for Moses Lake to be completed by end of August	50	\$37.6
	- Monthly cash spend decreasing		JUN 2024
		0

Debt Maturity Profile

GOVERNMENT INITIATIVES

Governmental Update

• › Strong bipartisan support for USA manufacturing
• › Trade Action AD/CVD case against Southeast Asia countries
  • Supporting companies that wish to invest in production capacity in USA (wafers, cells)
  • Strategic rationale around protections from Chinese polysilicon going into wafers or Chinese wafers into cells and then coming in the United States

› CHIPS ACT

• Several multi billion-dollar award announcements in second quarter
• › Continuing working on policies that support US manufacturing and value chains (Semiconductor, PV, batteries)

Focusing Support on Ingot/Wafer

SUMMARY

Summary

• › Moses Lake progress towards the first shipment continues
  • Isolations of impurity contributions proceeding
  • 1 st shipment targeted by mid September
  • 100% capacity expected by the end of 2024
• › PV markets will remain challenged over following quarters
• › Butte polysilicon production ceased at end of the quarter
• › Semiconductor gas demand broadly stable
  • Some segments growing
• › Discussions continue with Silicon Anode material producers
  • Resolution expected this year

Thank you.

REC Silicon ASA Q2 2024 August 8, 2024

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