REC Silicon

Investor Presentation • Nov 16, 2022

THIRD QUARTER 2022

PRESENTATION

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.

This presentation was prepared for the third quarter 2022 results on November 16, 2022. 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.

• › Third Quarter Highlights
• › Financial Review
• › Semiconductor Materials
• › Solar Materials
• › Key Initiatives

THIRD QUARTER HIGHLIGHTS

Revenues: \$ 36.7M

EBITDA: (\$ 13.8M)

September 30, 2022 Cash Balance of \$ 146.8M

• Cash Decrease During Q3 2022 of (\$ 26.2M)
  • (\$12.0M) Cash Outflows From Operating Activities
  • (\$13.5M) Cash Outflows From Investing Activities
  • (\$0.7M) Cash Outflows From Financing Activities

Silicon Gas Sales

• Sales Volume of 586MT (Decrease 31.2% vs. Q2 2022)
• Silicon Gases Price Increase 12.6% vs. Q2 2022

Semiconductor Segment Polysilicon Sales

• Semiconductor Grade Polysilicon Sales of 299MT
• Total Polysilicon Sales of 389MT (Decrease 17.4% vs. Q2 2022)
• Total Average Price (incl. byproduct) decrease 2.1% vs. Q2 2022

Moses Lake Restart

• Modification of FBR Rx's Underway
• First Production Target of Q4 2023 Unchanged

Markets

• Polysilicon MOU with Hanwha Solutions Executed
• Discussions Underway for Silane to LIB Anodes with Hanwha Corporation

	(Millions USD)		Q3 22 -		Q3 21 -		2022		2021		Q2 22 -
Revenues \$36.7M
- Polysilicon Sales Volume Decrease by 17.4% vs. Q2-22	Semiconductor Materials	\$	36 6	\$	36 2	\$	116 0	\$	142 8	\$	44 9
- Silicon Gas Sales Volume Decrease by 31.2% vs. Q2-22	Solar Materials		0 1		0 0	\$	0 1		0 1		0 0
EBITDA (\$13.8M) - Impacts:	Other Revenues	\$	0 1 36 7	\$	0 1 36 2	\$ \$	0 2 116 2	\$	0 2 143 2	\$	0 1 45 0
Large Scope Planned Maintenance Outage -
Record High Periodic Energy Costs -	Semiconductor Materials	\$	(5 3)	\$	1 8	\$	12 8	\$	33 4	\$	7 5
Shipment Deferrals and Container Logistics -	Solar Materials Other		(3 3) (5 2)		(2 3) (3 3)		(9 4) (14 8)		(5 7) (20 0)		(3 3) (5 2)
Solar Materials Segment	EBITDA	\$	(13 8)	\$	(3 7)	\$	(11 3)	\$	7 7	\$	(1 1)
- Net Expense of \$3.3M - Unchanged vs. Q2-22	EBITDA Margin		(37 7%)		(10 3%)		(9 8%)		4% 5		(2 4%)
Other	Polysilicon Production		MT 362		MT 295	1 ,	MT 123	1 ,	MT 225		MT 390
- Net Expense of \$5.2M	Polysilicon Sales		MT 389		MT 397	1 ,	MT 127	1 ,	MT 636		MT 471
- Unchanged vs. Q2-22	Silicon Gas Sales		586 MT		728 MT	2 ,	203 MT	3 ,	078 MT		852 MT
	* 2022 (Accumulated up to September)

SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE

November 16, 2022

Revenues \$36.6M

• 19% Decrease in Revenues vs. Q2-22
• Polysilicon Sales Volume 17.4% Decrease vs. Q2-22
  • Semiconductor Grade Polysilicon Decrease by 10.2%
• Polysilicon Sales Price (excl. byproduct) 3.1% Increase vs. Q2-22
  • Semiconductor Grade Polysilicon (FZ & CZ) Unchanged
• Silicon Gas Sales Volume 31.2% Decrease vs. Q2-22
• Silane Gas Sales Price 0.6% Increase vs. Q2-22

EBITDA Contribution (\$5.3M)

• (\$12.8M) Decrease in EBITDA Contributed vs. Q2-22
• Decreased Production Volumes
  • 7% Decrease (28MT) in Polysilicon Production vs. Q2-22
  • 28% Decrease (151MT) in Silane Production vs. Q2-22

CASH FLOWS

September 30, 2022 Cash Balance \$146.8M

(\$26.2M) Decrease in Cash During Q3'22

Cash Flows From Operating Activities (\$7.4M)

• (\$13.8M) EBITDA
• \$9.7M Working Capital
  • \$2.7M Decrease in Inventories
  • \$5.2M Decrease in Receivables
  • \$1.7M Increase in Payables
• (\$2.1M) Interest Paid
• (\$0.4M) Pension Plan Contributions (US Plan)
• (\$0.8M) Changes in Other Assets & Liabilities

Cash Outflows From Investing Activities (\$13.5M)

• (\$14.6M) Capital Expenditures
• \$1.1M TIFID Bond

Cash Outflows From Financing Activities (\$0.7M)

• (\$0.7M) Payment of Lease Liabilities

Foreign Exchange Effect (\$4.6M)

Cash Flows (USD Million)

DEBT

Available Debt Maturities by Year

SEMICONDUCTOR MATERIALS

THIRD QUARTER 202 2

Silicon Gas Sales

• 586MT Shipped in Q3-22
  • 31% Volume Decrease vs. Q2-22
  • Supply Chain Constraints Improving But Still Affecting Shipments and Timing
  • Flat Panel Display Production Utilization Forced Demand Deferrals
• Silane Price 0.6% Increase vs. Q2-22

Shift in Demand Most Likely to Persist for Near Term

• Flat Panel Production Segment Forecasting Lower Utilization
• Supply Chain Inventories Will Be Given a Chance to Balance Out
• Advanced Semiconductor Demand for Some Gases Still Strong and Limited by Logistics, Containers and Production
• Price Increases in Place for 2023

Mid to Long Term Drivers Still in Place

• Data, AI, IoT, Mobility, Automotive Content
• Re-Shoring of Advanced Semiconductor Production
• Silicon Inclusion in Li Batteries is Advancing

Silicon Gas Sales Volumes (MT)

Semiconductor Grade Polysilicon Sales Volumes (MT)

Semiconductor Grade Polysilicon Sales

• 299MT Shipped in Q3-22
  • Decrease of 17% Compared to Q2-22
  • Lower Production Rate in Q3 Due to Large Planned Maintenance Outage
• Semiconductor Price Remained Flat vs. Q2-22

Demand Visibility Remains Strong

• Finishing Commitments for 2023
• Sales Will Be Limited by Production Capability and Utilization
• Energy Cost and Operational Mitigations in Place to Minimize 2023 Impacts
• Price Increases in Place for 2023

Note: Excludes 165MT of Non-Recurring Teardrop Sales in Q2'21

SOLAR MATERIALS

THIRD QUARTER

MOSES LAKE RESTART UPDATE

Restart Activities Continue

• Target:
  • 1 st Production in Q4-2023
  • 50% Capacity Utilization During Q2-24
  • 100% Capacity Utilization During Q4-24

- Current Activities:

• Procurement of Equipment and Materials Underway
• Modification of FBR Reactors Underway
• Initial Hires for Positions Critical to Restart Activities
• Working to Complete Detailed Engineering and Construction

THIRD QUARTER 202 2

GOVERNMENT INITIATIVES

Inflation Reduction Act

• US Treasury Department Working on Structure
• IMPACT Re-Shoring PV Value Chain to USA

CHIPS & Science Act of 2022

• Department of Commerce Working on Protocol and Criteria
• Expect Information Rollout in February
• IMPACT Re-Shoring Advanced Semiconductor Fabrication to USA

Infrastructure Investment and Jobs Act

• DOE Awarded \$2.8 Billion in Battery Grants
  • \$250 Million to Silane-Based Silicon Anode Material Companies
  • IMPACT Silane-Based Silicon Anode Material Production in USA

RESTART FUNDING PERSPECTIVES

Finalizing Capital Requirement

• Moses Lake Modification of 12 FBR Reactors (100% Capacity)
• Moses Lake Packaging and Handling & Polysilicon Analytical Lab
• Butte Operational and High Value Growth Investments
• Bond Repayment of \$ 110M in April 2023

Financing Plan

• Reviewing Timeline
• Engaging Outside Resources
• Solidifying Options

CORRECT ASSETS, TIMING AND CAPACITIES

› Big Data › IoT › Automotive Content

› Mobility › AI

Thank You

Q4 2022 Reporting Feb 23, 2023

www.recsilicon.com