REC Silicon

Investor Presentation • Mar 1, 2018

2018 Energy Conference

March 1, 2018

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 SpareBank1 Markets Energy Conference on March 1, 2018. 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.

• › World's Largest Producer of Silane Gas
• › World's Largest Producer of Granular (NextSi™) Polysilicon
• › World's Largest Producer of High Purity Float Zone Polysilicon

REC Silicon in the Solar Value Chain

› REC's Manufacturing Processes use Metallurgical Grade Silicon, Which is Transformed into Silane Gas and Polycrystalline Silicon

January 2018 was the Fifth Warmest January on Record

It is the view from your own window that counts.

The "View" from Idaho

A Commitment to Ignorance

• › U.S. Politics are "Interesting"
• › We Want to Believe Only Those Things That Benefits Us
• › Attempt to Legislate Alternative Facts
• › Now, It's a Battle

Solar Gains Traction in Idaho

PV Markets

Solar: Fastest Growing Renewable Energy Globally

Source: GTM Market Demand Tracker – February 1, 2018

REC Silicon Is a Low Cost Leader

© REC Silicon ASA. All rights reserved. Confidential March 1, 2018

Investment Economics for Polysilicon Capacity Expansion

• › Assumes "World Class Plant"
• 2017 FBR Cost of \$10.6/kg
• \$1/kg SG&A
• \$35/kg Capital Cost
• › Dec '17 Spot Price \$16.6/kg
• Negative Return for "Best" Competition
• 8% Return for FBR
• › ~15% Industry WACC
• FBR Threshold Price \$19.8/kg
• "Best" Competitor Price \$21.2/kg

a

Required Before Tax Rate of Return

Solar Trade War

AD/CVD

• › China and Taiwan Accused of Dumping
• › US Initiates Tariff Currently 62%
• › China Responds 57% Tariff on US Polysilicon
• › REC Access to Chinese Markets Restricted Since 2015

Section 201

• › US Module Producers File for Protection
• › Affects ALL US Imports of Cells and Modules
• › President Trump's Ruling:

~ 92%

• › 30% tariff on cells & modules
• › Stepdown to 5% over 4 years
• › 2.5 GW cell quota

~57%

US Government Expresses Commitment to Pursue Settlement for US Polysilicon

• › US Government is Focused on Value of US Polysilicon Industry
• › Section 201 Announcement Noted:

"The U.S. Trade Representative will engage in discussions… that could lead to positive resolution of the separate antidumping and countervailing duty measures currently imposed on Chinese solar products and U.S. polysilicon."

Difference in Prices Inside vs. Outside of China

Copyright © 2017 PVinsights.com All rights reserved

• › Tight Polysilicon Supply Inside China
• › Price Difference Approximates Tariff
• › REC Discounts to Maintain Market Share Outside China

Increasing Revenues

• › Solar Price Increases Reflect Tight Market
• › Polysilicon Sales Limited by Production
• › Increasing Silicon Gas Sales
• › Decreased Investment in Working Capital

Increasing EBITDA

• › High Margin Silicon Gas Sales
• › Prime Solar Grade Price Increase
• › FBR Cash Cost of \$10.4/kg

Polysilicon Production and FBR Cost

2,500 3,000 3,500 4,000 Polysilicon Production FBR

3,354

FBR Cost

** Q3'17 Depreciation Includes \$65.7M Due to the Derecognition of a Grant Receivable

1,175 1,026

2,321

0

500

1,000

1,500

2,000

Silicon Production (MT)

March 1, 2018 \$66 \$81 \$71 \$88 \$105 Cash Balance

• › Reduction of Working Capital
• › World Class FBR Cash Cost
• › Increasing Silicon Gas Sales
• › Solar Polysilicon Price Increases

Debt Maturities

• › \$ 55.5M NOK Bond (REC03) Due in May 2018
• › \$110.0M USD Convertible Bond Due in Sept. 2018

Expect to Repay REC03 with Cash on Hand

› Continued Positive Cashflows Expected in Q1 2018

\$100M Additional Capital Required

› Evaluating Alternatives to Restructure the Company's Debt

›Exposure to Substantial Growth

›Best in Class Cost Performance

›Impact of Solar Trade War

›The Time For Solar Energy is Now

Be still sad heart and cease repining; above the clouds is the sun still shining... - Henry Wadsworth Longfellow