REC Silicon

Investor Presentation • Feb 8, 2024

FOURTH QUARTER 202 3

PRESENTATION

Kurt Levens, CEO Jack Yun, CFO

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.

AGENDA

• › Highlights
• › The Business Opportunity
• › Activity Update
• › Operations
• › Financials
• › Summary

HIGHLIGHTS

• › Q4 2023 revenues of \$40.5M, up from \$34.8M in Q3, driven by increased silicon gas sales and semiconductor product mix
• › EBITDA (\$31.2M) impacted by Butte poly shutdown accruals and increased manufacturing cost at Moses Lake
• › Moses Lake startup process commenced, process on time for first delivery in Q1 2024 and full capacity by year-end
• › Process to optimize Butte operations continues, discontinuing EG polysilicon production during 2024
• › Yulin JV sale completed Gross proceeds of \$136.1M received in December 2023
• › December 2023 cash balance of \$170.9M

THE BUSINESS OPPORTUNITY

5 © REC Silicon ASA. All rights reserved. Confidential

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

6 © REC Silicon ASA. All rights reserved. Confidential

EXPOSURE TO ENERGY TRANSITION MEGATRENDS

* From 2025 and onwards

SILANE-BASED INDUSTRIES FACING DISRUPTIVE CHANGES

› Investments moving from Asia to the US › Support from US legislative initiatives

• › The CHIPS & Science Act 2022 › Inflation Reduction Act 2022 › Uygur Forced Labor Prevention Act 2021
• › Infrastructure Investment & Jobs Act 2021
• › Strong political and regulatory push
• › Low-emission energy
• › Supply chain geographical diversification
• › End-user proximity
• › Tech war

STRATEGIC PRODUCT MIX TRANSFORMATION/ OPTIMIZING SILANE GAS CAPACITY

THE ROAD TO SUSTAINABLE PROFITABILITY

2023 Exposure Exposure 2025 ->

ACTIVITY UPDATE

ACCOMPLISHMENTS

What we've said	What we've done	Status
• Refinance \$110M bond	• Corporate debt financing \$110M, April 2023 • \$30M one-year bank loan facility, June 2023
• Financing of Moses Lake restart and Butte investments	• \$100M three-year term loan agreement, July 2023 • \$40M term loan, September 2023
• Secure long-term corporate funding	• Received the first tranche of prepayments under offtake contract • Second tranche of prepayments at the first delivery	Q1 2024
• Secure sustainable operation for Moses Lake	• Signed 10-year offtake contract
• Moses Lake restart	• Modifications • Installations • Testing and recommissioning • Production start • Production ramp-up	Ongoing Ongoing
• Butte capacity expansions	• DCS capacity expansion • Silane gas loading capacity expansion
• Yulin JV	• Sold 15% equity stake \$136M
• Address Butte energy situation	• Entered short-term hedging contracts and increased sales price • Discontinue polysilicon production	Ongoing

MOSES LAKE RESTART PROCESS

POSITIONING FOR NEW SILANE GAS OPPORTUNITIES

› Hanwha MoU for Silane Gas Offtake terminated

• › REC Silicon focusing on optimizing value creation
• -Direct with battery anode material producers
• -Through selected distributors

› Moses Lake

• -Several initiatives ongoing
• -Silane-based anode material a common denominator

Capacity expansions	EG Poly shutdown	Average Electricity Price (Yearly MW)
› Total investments of \$13.8M	› Increase EBITDA by \$10-13MM per year
› DCS expansion - 3X previous capacity	› Reduce exposure to unbalanced energy market
- Some production volume shipments expected in 2024	› Reduce GHG emissions
- North American market expected to increase 2-3X
	› Product portfolio continues to shift to higher value silicon gases and markets
› Increased silicon gas container capacity and fleet
- Capacity leverage for recovery	› Increases available gas capacity and focus on profitable growth opportunities into the future
› Cost reduction ROI projects ongoing		2018 2019 2020 2021 2022 2023

OPERATIONS

Silicon Gas Sales

• 832 MT shipped in Q4 2023
  • 10.4% volume increase vs. Q3 2023
• Silicon gas sales price 2.0% increase vs. Q3 2023

Semiconductor showing sign of improvement

• Some gases seeing supply chain replenishment
• Package cycle improving
• Still utilizing spot channels for silane volumes
• Utilization recovery still semi device dependent

No change to fundamental opportunity

• Semi Fabs, PV Cell Fabs and Si anode material facilities all under construction
• Mobile technology, AI, Data, Anode Materials, PV re-shoring

Silicon Gas Sales Volumes (MT)

Semiconductor Grade Polysilicon Sales Volumes (MT)

Semiconductor Grade Polysilicon Sales

• 145 MT shipped in Q4 2023
• Increase of 3.5% compared to Q3 2023
• Semiconductor grade polysilicon price 35.6% increase vs Q3 2023

Production of Polysilicon

• CZ polysilicon demand still slow
• Market growth projected for 2H 2024
• FZ polysilicon demand for power devices remains good
• Prices and volumes are firm commitments through mid year
• Expect to be finished with product growth by mid year

Solar shipments and installations strong in 2023

• Total installations above 350GW
• Total module shipments over 400GW
• Module inventory builds reported in US and Europe

Prices stabilizing 2H 2024

• China price drop slowing as approaching reported cash costs
• Outside China polysilicon prices maintaining gap
• Demand for N-type polysilicon increasing
• Will be dominant poly type in the future

China New plant expansions

• Plans by capacity leaders in China to drive expansion to force out suboptimal capacity
• Plants not under construction expected to be delayed or cancelled

N-Type Polysilicon USD/KG

Source: PV Insights

FINANCIALS

	(Millions USD)	Q4-23	Q4-22	2023	2022	Q3-23
Revenues \$40.5M - Polysilicon Sales volume decrease by 8.9% vs. Q3-23	Semiconductor Materials Solar Materials	\$ 40.3 0.1	\$ 31.5 0.1	\$ 140.6 0.4	\$ 147.4 0.2	\$ 34.7 0.1
- Silicon Gas Sales volume increase by 10.4% vs. Q3-23	Other	0.0	0.1	0.2	0.2	0.1
	Revenues	\$ 40.5	\$ 31.6	\$ 141.1	\$ 147.8	\$ 34.8
EBITDA (\$31.2M) - Impacts: Polysilicon shutdown accrual - Increase Moses Lake restart activities -	Semiconductor Materials Solar Materials Other	\$ 1.1 (25.8) (6.5)	\$ (6.5) (10.5) (6.6)	\$ 14.0 (64.8) (29.7)	\$ 6.3 (19.9) (21.3)	\$ 6.1 (16.0) (8.0)
Semiconductor Materials Segment - EBITDA of \$1.1M	EBITDA EBITDA Margin	\$ (31.2) (77.0%)	\$ (23.6) (74.7%)	\$ (80.5) (57.0%)	\$ (34.9) (23.6%)	\$ (17.8) (51.2%)
Other - Net Expense of \$6.5M	Polysilicon Production Polysilicon Sales	276 MT 182 MT	267 MT 302 MT	1,103 MT 749 MT	1,456 MT 1,502 MT	281 MT 199 MT
	Silicon Gas Sales	832 MT	515 MT	3,075 MT	2,718 MT	754 MT

Revenues \$40.3M

• 16.3% increase in revenues vs. Q3-23
• Polysilicon Sales Volume 8.9% decrease vs. Q3-23
  • Semiconductor Grade Polysilicon increase by 3.5%
• Polysilicon Sales Price 35.6% increase vs. Q3-23
  • Semiconductor Grade Polysilicon 20.9% increase vs Q3-23
• Silicon Gas Sales Volume 10.4% increase vs. Q3-23
• Silicon Gas Sales Price 2.0% increase vs. Q3-23

EBITDA Contribution \$1.1M

• \$5.0M decrease in EBITDA contributed vs. Q3-23
• Decreased production volumes
  • 2.0% decrease in Polysilicon Production vs. Q3-23 5 MT

Quarterly Revenue and EBITDA (USD Million)

Sales Volumes
	Q4-23	Q4-22	2023	Q3-23
Semiconductor	145	226	524	140
Grade	MT	MT	MT	MT
Other	MT	MT	MT	MT
Grades	37	76	225	59
Sales	182	302	749	199
Polysilicon	MT	MT	MT	MT
Silicon Gas Sales	832 MT	515 MT	3 075 MT ,	754 MT

CASH FLOWS

December 31, 2023 Cash Balance \$170.9M

\$49.2M Increase in Cash During Q4-23

Cash Flows From Operating Activities (\$44.8M)

• (\$31.2M) EBITDA
• (\$7.9M) Working Capital
  • (\$9.1M) Increase in inventories
  • (\$6.7M) Increase in receivables
  • \$7.9M Increase in payables
• \$1.2M Interest received
• (\$8.0M) Interest paid
• \$0.7M Other items

Cash Inflows From Investing Activities \$96.0M

• \$136.1 Proceeds from Yulin JV sale
• (\$40.8M) Capital Expenditures
• \$0.2M Other items

Cash Flows From Financing Activities (\$2.0M)

• (\$1.1) Principal payment of property tax note
• (\$0.9M) Payment of Lease Liabilities

Cash Flows (USD Million)

Nominal Debt \$354.1M

• \$1.4M Increase during Q4-23
  • (\$1.1M) Repayment of Debt
  • \$2.5M Changes in Lease Liabilities
• Completion of Yulin JV share sale, Gross proceeds of USD 136.1M

Nominal Net Debt \$183.2M

• \$47.8M Decrease during Q4-23
  • \$49.2M Increase in Cash
  • (\$1.4M) Increase in Nominal Debt

Equity ratio 13.8%

Debt Maturity Profile (USD Million)

• ›Successful restart of Moses Lake initiated in November on track for first delivery in Q1 2024
• ›Successful close of Yulin JV interest
• ›Silicon Gas market still at stable level with increasing replenishment in some markets
• › Continued optimization of Butte operations and portfolio addressing energy use situation and ensuring sustainable profitable operations
• ›Silicon anode material opportunities closer to fruition, using channel approach flexibility to maximize value creation

February 8, 2024

Thank You

Q1 2024 Reporting May 9, 2024

www.recsilicon.com