REC Silicon

Investor Presentation • May 11, 2021

FIRST QUARTER 2021

FIRST QUARTER

2021

PRESENTATION

Disclaimer 2021

FIRST QUARTER

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 first quarter 2021 results on May 11, 2021. 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 2021

Q1 Results	Tore Torvund
Financial Review	James A May II
Silicon Gases & Semiconductor Update	Kurt Levens
PV Market Update	Chuck Sutton
Yulin JV Update	Tore Torvund
Battery Update	Tore Torvund
Short-term Business Plan	Tore Torvund
Q&A	Tore Torvund

Revenues: \$28.1M EBITDA: \$ 4.0M

March 31, 2021 cash balance of \$131.5M

• Cash decrease of \$3.4M
• Cash outflows from operating activities of \$1.3M

BUTTE FACILITY

Silicon gas sales

• Sales volume of 781MT

Semiconductor segment polysilicon sales

• Semiconductor grade polysilicon sales volume of 137MT
• 227MT Total Semiconductor segment polysilicon sales

DCS expansion project approved

• Approximately \$8.0M capital expenditure (anticipate \$4.9M in 2021)
• Completion estimated in 18 months
• Estimate 2.5-year payback period

MOSES LAKE FACILITY

Solar Materials Developments

• Continued strong PV demand growth
• Continued efforts to create a non-Chinese solar value chain

Battery Materials Developments

• Continued discussions to establish silane supply contracts with battery materials companies
• Silicon anode company began operation of pilot plant in Moses Lake

Financial Review

James A. May II

(USD million)	Q1 2021		Q1 2020		2020
	Revenues	EBITDA	Revenues	EBITDA	Revenues	EBITDA
Semiconductor Materials	28.0	10.8	24.5	8.0	121.4	36.3
Solar Materials	0.1	(1.9)	0.2	(2.8)	0.5	6.7
Other	0.1	(4.9)	0.0	(4.1)	0.1	(19.3)
REC Silicon Group	28.1	4.0	24.7	1.0	122.1	23.8

Key Financial Results – Butte Facility

FIRST QUARTER

2021

Revenues: \$28.0M (22.1% decrease vs. Q4'20)

• › Total polysilicon sales volumes 227MT (32.9% decrease vs. 338MT in Q4'20)
  • Semiconductor grade volumes 137MT (45.2% decrease vs. 250MT in Q4'20)
  • (19.6%) Average price decrease vs. Q4'20
    • Price impact due primarily to lower sales volumes of semiconductor grade polysilicon compared to Q4'20
  • (6.7%) Semiconductor grade price decrease vs. Q4'20
    • Due primarily to mix of grades sold and timing of shipments
• › Silicon gas sales volumes 781MT (11.3% decrease vs. 881MT in Q4'20)
  • 2.4% Silane price increase vs. Q4'20

EBITDA Contribution of \$10.8M

Compared to Q4'20 EBITDA contribution of \$11.7M

• › Lower silicon gas sales volumes
• › Higher polysilicon production volumes (293MT – 52.2% increase vs. Q4'20)

Solar Materials Revenues: \$0.1M EBITDA Contribution: (\$1.9M) Loss › Net Expense of \$1.9M - Comparable to prior period results excluding items of other income/expense Other and Eliminations › Net cost: (\$4.9M) (compared to \$7.0M in Q4'20) - Q1'21 and Q4'20 include the impact of changes in estimates to arrive at accrued liabilities (\$10 M) \$0 M \$10 M \$20 M

Revenues (Solar Mat'ls) EBITDA (Solar Mat'ls) EBITDA (Other & Eliminations)

FIRST QUARTER

Cash Flows 2021

Cash outflows from operating activities (\$1.3M)

• › EBITDA of \$4.0M
• › Working capital increase (\$3.4M) Increase in inventories (\$7.6M)
  -
  • Increase in receivables (\$0.7M)
  • Increase in payables and accruals \$4.8M
• › Interest paid (\$2.2M)
• › US pension plan contributions (\$0.2M)
• › Currency gain of \$0.4M (Weaker USD vs. NOK)
• › Changes in other assets and liabilities \$0.2M

Cash outflows from investing activities (\$1.7M)

› Capex (\$1.7M)

Cash outflows from financing activities (\$0.5M)

› Payment of lease liabilities (\$0.5M)

Nominal debt - \$220.3M

• › Decrease of (\$0.4M) in Q1'21
  • (\$0.4M) Decrease in Lease Liabilities (IFRS 16)
  • \$0.1M Increase in indemnity loan (Due to a weaker USD vs. NOK)

Nominal net debt - \$88.8M

• › Increase of \$3.1M in Q1'21
  • Decrease in cash of \$3.4M
  • Decrease in nominal debt of (\$0.4M)

Contingent Liabilities

› Indemnity loan - \$23.5M

Debt maturity profile

USD Million

• Indemnity Loan
• C.A.R.E.S. Act Loan
• Lease Liabilities
• Note Property Tax Settlement
• USD Senior Secured Bond

\$131M

Butte Facility Silicon Gases and Semiconductor

Kurt Levens

› Q1 shipments seasonally lower

• Year on year appreciably higher for Q1 shipments
• Traditionally lower quarter due to large customer forecasted order patterns
• Increased inventory drawdown for some product type
• › Customer qualification nearly finalized at 3 customers
  • Volumes will gradually phase in starting second half of 2021

Silicon Gas Shipments 2021

• › Underlying demand remains strong
  • Q1 is normally seasonally low
  • Semi, FPD and PV remained at high utilization
  • Logistics cycle times increasing due to Ocean Freight
  • Backlog increasing due to global logistics challenges
• › Advanced Silicon Gases
  • Demand is increasing with device technology advancement
  • De-bottleneck/process improvements to increase volume
  • Expect to continually increase shipment level every quarter

2021 Semiconductor Outlook for REC Silicon 2021

• › Customer provided forecasts provide a relatively high level of visibility
• › Current forecasts are in a range
  • Dependent upon customer inventory drawdown
  • Dependent upon success and timing of qualification
• › Shipments are expected to increase
  • Ramp over remaining quarters in 2021
  • Quarterly fluctuation due to above factors and logistics timing
• › New wafer and fabrication capacity will be required to push volumes significantly above current production levels

2021 Silane Outlook for REC Silicon 2021

• › All 3 main consuming segments are increasing
• › Semiconductor increases are tied to full utilization and capacity debottlenecking
• › Flat Panel capacity has remained fully utilized
  • Some companies have delayed planned shut-downs and conversion
  • Panel makers reporting visibility into 2022 at this point
• › PV is expected to grow in 2021 by 20%
  • The largest silane consuming segment
  • Not a large part of REC portfolio
• › Quarterly shipment increases are forecast
  • Customer new facility start up may affect timing
  • Global logistics bottlenecks will also affect timing

Butte Expansion - DiChlorosilane (DCS) 2021

• › Part of REC Silicon Gases portfolio
  • Demand growth driven by new investments in leading edge semiconductor fabrication
  • CAGR above underlying semiconductor materials rate (>12%)
  • REC scale and process enable "world class" cost position
  • Currently at full capacity
• › New investment in capacity
  • Approved project scope will increase production capacity by more than 2X and nearly double current packaging capability
  • Design basis to allow for more rapid incremental expansions as market continues to grow
  • Product quality designed for next generation processes and requirements
• › Estimated 2.5-year payback period

PV Market Outlook

FIRST QUARTER

2021

Chuck Sutton

• › Continued decline in total PV project installation costs
• › High power modules and higher efficiency modules
• › Increasing governmental support for renewable energy
• › Global desire for climate change

PV Installations MW

Market Shifting to Higher Efficiency Products 2021

• › Market for High power and increased efficiency modules is increasing
  • N-type wafer technology next steps for higher efficiency
• › FBR-B polysilicon meets quality requirements
  • Demonstrated in Yulin JV plant
  • Limited investment to upgrade FBR-A in Moses Lake
• › Investment in Cell technology primary cost in switch to N-type Source: ITRPV 2020

Demand Driving Up Polysilicon Pricing 2021

• › Demand for PV installations requires all existing polysilicon capacity
• › Polysilicon and wafer prices continue to increase
• › New polysilicon capacity will be required
  • Potential risk for over investment ⁰

Ultra Low-carbon PV value chain under development 2021

US Political Initiatives

Create and Support US PV Value Chain

• › American Jobs Plan
  • Revitalize manufacturing, Increase capital to support rural manufacturing and clean energy
  • Buy American to spur jobs that deliver clean energy
  • Strengthen manufacturing supply chains for critical goods.
  • Extension of Investment Tax Credit (ITC), jobs that modernize power generation and deliver clean energy
• › Endless Frontier Act
  • Supports R&D in key technologies
  • Support activities that develop domestic supply chains
• › Ultra Low -Carbon Solar Alliance
  • Working to build a product label declaring Ultra Low Carbon production used to produce product

Yulin JV Update

FIRST QUARTER

2021

Tore Torvund

Yulin JV, China

Improvement in operational performance

Plant characteristics Current Status

• › Construction completed in 2018
• › Large scale silicon manufacturing facility with
  • 19,000 MT FBR-B granular Polysilicon
  • 300 MT Siemens semiconductor grade Polysilicon
  • 500 MT Silane Gas loading
• › Operating Performance
  • Mono capable FBR production
  • Design capacities demonstrated

• › Delay in Equity Settlement Payment of \$4.7M:
  • Ongoing negotiations toward acceptable resolution regarding outstanding performance test issues and payment for REC technical services

1 st Quarter Production

• › Q1 Production
  • 121 MT of Loaded Silane
  • 2746 MT of FBR Granular
  • 17 MT of Siemens
• › Production expected to increase in Q2 2021

Battery Opportunities

FIRST QUARTER

2021

Tore Torvund

• › The US market for silane may exceed 50,000MT/year by 2030
• › Global market for silane may exceed 200,000MT/year by 2030

-

Discussions ongoing with several Silicon Anode companies Silane supply contracts with financial guarantees

• › REC Silicon is the only company with large-scale production facilities for silane outside of China
  • 25,000MT Moses Lake
  • 7,200MT Butte
• › Supply agreements between REC Silicon and silicon anode companies still under negotiations
• › Silicon anode pilot in Moses Lake in operation and producing anode material

Silane production capacity:

~25,000 tons per year Highest purity & lowest cost Hydroelectricity = low carbon footprint

FIRST QUARTER

2021

Short Term Business Plan

FIRST QUARTER

2021

Tore Torvund

Silane: Feedstock for the Energy Transition 2021

Q2 2021 Reporting July 22, 2021

FIRST QUARTER

2021

30 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021

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