REC Silicon

Investor Presentation • Feb 9, 2018

FOURTH QUARTER

PRESENTATION

Disclaimer

FOURTH QUARTER 2017

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 fourth quarter 2017 results on February 9, 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.

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REC Silicon Q3 Financial Results	T. Torvund, CEO
Financial Overview	J.A. May II, CFO
PV Market Outlook	T. Torvund
U.S. / China Trade Dispute Update	T. Torvund
Yulin JV Update	T. Torvund
Guidance	T. Torvund
Q & A

Highlights 2017

Revenues:	\$78.0M
EBITDA:	\$10.3M

FBR Cash Cost of \$10.4/kg

• FBR Facility Continues Operation at ~50% Capacity Utilization
• Continued Low Cost Demonstrates Capability of FBR Technology

Strong Silicon Gas Sales Volumes

• Sales Volume of 969MT (7.2% Increase vs. Q3'17)
• 0.9% Silane Gas Price Decrease vs. Q3'17

December 31, 2017 Cash Balance of \$104.5M

• Cash Increase of \$16.6M vs. Q3'17
• \$18.8M Cash Flows From Operations (\$10.1M From Working Capital)
• Anticipate Sufficient Liquidity to Meet Bond Maturity in May 2018 (REC03)

Yulin JV Started up in December 2017

• Full Capacity Utilization During H2'18
• Resolution to Equity Contribution Negotiation Announced on February 1, 2018

Polysilicon Sales Volume **
Total	3,943MT
Inventory Decrease	1,328MT

FBR Production
Actual	2,329MT
Guidance*	2,260MT
Deviation	3.1%

Total Polysilicon Production
Actual	2,616MT
Guidance*	2,610MT
Deviation	0.2%

Semiconductor Production
Actual	156MT
Guidance*	220MT
Deviation	-29.0%

Silicon Gases Sales Vol.
Actual	969MT
Guidance*	920MT
Deviation	7.7%

** Guidance Presented October 30, 2017

** Excludes Fines and Powders

5 © REC Silicon ASA. All rights reserved. Confidential February 9, 2018

RECSiLICON
------------	--

Strong Silicon Gas Sales 2017

› Polysilicon Sales Volumes 3,943MT (Excluding Fines & Powders)

• (3.6%) Sales Volume Decrease vs. Q3'17
• (0.8%) Average Solar Price Decrease vs. Q3'17
• 6.4% Prime Grade Solar Price Increase vs. Q3'17
• › Silicon Gas Sales Volumes 969MT

Key Financial Results

Revenues - \$78.0M

› 3.4% Increase vs. Q3'17

• 7.2% Sales Volumes Increase vs. Q3'17
• (0.9%) Silane Price Decrease vs. Q3'17

EBITDA of \$10.3M

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

FOURTH QUARTER Cash Flows 2017

Cash Flows From Operating Activities \$18.8M

• › EBITDA of \$10.3M
• › Working Capital Decrease \$10.1M
• Decreased Inventories \$10.3M
• Increased Accounts Payable \$0.9M
• Increased Accounts Receivable (\$1.1M)
• › Interest payments (\$1.8M)
• › Other \$0.2M

Cash Outflows From Investing Activities (\$0.3M)

› CapEx (\$0.3M)

Currency Loss of (\$1.8M) › Stronger USD vs. NOK

Cash Flow Trend 2017

Continued Positive Cash Flows From Operations

• › Cost Savings Initiatives Have Reduced Spending
• › Low FBR Cash Costs due to Stable Operations at ~50% Capacity Utilization
• › Increases in Silane Sales Volumes
• › Increases in Prime Solar Polysilicon Prices
• › Increases in Receivable Turnover Efficiency
• › Substantial Contribution from Inventory Decline

Expect to be Slightly Cash Positive During Q1 2018

Nominal Debt - \$190M

• › Decreased by \$2M in Q4'17
• Due to Stronger USD Relative to NOK

Nominal Net Debt - \$85M

• › Decreased by \$19M in Q4'17
• Increase in Cash of \$17M
• Decrease in Nominal Debt of \$2M

Indemnity Loan - \$24M

• › Callable Beginning in February 2016
• › Has not Been Called
• › Due Date is Uncertain

Reassessment of Tax - \$30M

• › Response to Norwegian Central Tax Office Filed
• › Do Not Expect Final Ruling Before H2'18
• › Uncertain Timing and Outcome

PV MARKET OUTLOOK

FOURTH QUARTER

2017

13 © REC Silicon ASA. All rights reserved. Confidential February 9, 2018

Forecasted Demand Remains Strong Through 2021 2017

• › Continued Growth Expected For PV Installations
• › China Continues to Dominate Demand
• › Response to 201 Decision:
• Highest Impact to US Utility Scale Installations
• Stockpile of Module Inventories Deplete in 2018
• › Demand Growth in Europe

Source: GTM Market Demand Tracker – February 1, 2018

Balanced Demand During 2018 2017

• › High Demand in India in Q1'18
• 2017 Installations Delayed
• › China 2017 FiT Rates Extended to June 2018
• › Global Trade Barriers Limit Market Access for Chinese Modules
• May Increase Domestic Installations

21.8 26.9 27.2 30.4 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 Q1'18E Q2'18E Q3'18E Q4'18E Axis Title IHS Markit 2018 Quarterly Installation Forecast China Europe United States India Japan Middle East and Africa Rest of Americas ROW Source: I.H.S Markit PV Demand Market Tracker – Q4 2018 - December 6 2017

Polysilicon Spot Price 2017

Tight Inside China

Outside China

› Polysilicon Supply Remains › REC Continues Discounts to Maintain Market Share › REC Expects Stable Prices During 1st Quarter 2018 DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC FBR Prime Vs. Solar Indices FBR PRIME Inside China Outside China

2016 2017

Copyright © 2017 PVinsights.com All rights reserved

REC Silicon Remains a Low Cost Leader 2017

FOURTH QUARTER

FBR Production Balanced With Sales Volumes 2017

Note: Excludes Fines & Powder

U.S./ CHINA TRADE DISPUTE UPDATE

US / China Solar Trade Dispute Continues 2017

• › Section 201
• Affects all Imported Cells & Modules into US from all Countries
• 4 year remedy announced effective in early February 2018
  • 30% tariff on cells & modules, stepdown to 5% over 4 years
  • 2.5 GW cell quota
  • Much less severe than requested by Petitioners, Solarworld & Suniva
• › AD/CVDs
• Section 201 tariffs in addition to existing AD/CVDs on Chinese & Taiwanese Cells And Modules
• US AD/CVDs on Chinese solar products recently increased for 2016 imports to 62%
• › USG Express Commitment to Pursue Settlement for US Polysilicon
• New USG 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."

FOURTH QUARTER

Yulin JV Financial History 2017

› 2014 Yulin JV Agreement:

• Received \$198M for Technology Transfer
• Paid off \$142.7M of REC Debt
• REC's Equity Contribution
• 15% August 2014: \$75M
• 34% July 2017: \$169M Resolved

› 2018 Framework Agreement:

• Yulin JV Shareholding:
• SNF ~85%, REC Silicon ~15%
• REC to Pay:
• \$ 0.6M in Interest
• \$10.4M in 3 Installments
• After 3 years, REC has the option to:
• Buy back ~34% Equity Interest from SNF,
• or Remain a ~15% Equity Holder,
• or Sell REC's ~15% Equity Interest

Yulin JV Signing Ceremony February 2014

FOURTH QUARTER

Yulin JV - Start-Up Status 2017

• › First Silane Unit and FBR Reactors Started up December 2017
• Production at 25% Capacity by End of Q1 2018
• › Second Silane Unit and Remaining FBR Reactors Start-up in Q2 2018
• Full Production Capacity by H2'2018
• › 2018 Targets:
• Poly Production = 8,000 MT (FBR & Siemens)
• Demonstrate High Purity EG Poly Production
• › Total Investment Within Budget of \$1.25 Billion

FBR Production
2017	9,379MT
Guidance*	9,310MT
Deviation	0.7%

FBR Cash Cost
2017	\$10.6/kg
Guidance*	\$10.8/kg
Deviation	-1.9%

Total Polysilicon Production
2017	11,636MT
Guidance*	11,630MT
Deviation	0.1%

Semiconductor Production
2017	844MT
Guidance*	908MT
Deviation	-7.0%

Silicon Gas Sales
2017	3,501MT
Guidance*	3,452MT
Deviation	1.4%

2017 CapEx **
Maintenance	\$3M
Guidance*	\$4M
Deviation	-35.0%

* Guidance Presented October 30,2017

** Additions to Property Plant and Equipment

FBR Production		FBR	Cash Cost		Total Polysilicon Production
Q1	2,620MT	Q1	\$11.1/kg	Q1	2,990MT
2018	9,760MT	2018	\$11.7/kg	2018	11,330MT

Semiconductor Production			Silicon Gas Sales		2018 CapEx *
Q1	210MT	Q1	880MT		Maintenance	\$4M
2018	870MT	2018	3,700MT

** Additions to Property Plant and Equipment

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

• › Expect to be Slightly Cash Positive During Q1 2018
• › Sufficient Liquidity to Pay Indemnity Loan if Called Prior to September 2018

\$100M Additional Capital Required

• › Evaluating Alternatives to Meet Debt Maturities in 2018
• › Debt Refinance
• › Divestment of Non-core Assets

April 26, 2018