REC Silicon — Investor Presentation 2016

Jul 21, 2016

SECOND QUARTER 2016

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 second quarter 2016 results on July 21, 2016. 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.

REC Silicon Q2 Financial Results	T. Torvund, CEO
Financial Review	J.A. May II, CFO
Market Outlook	T. Torvund
U.S. / China Trade Dispute Update	T. Torvund
Yulin JV Update	T. Torvund
Guidance	T. Torvund
Q & A

REC Silicon ASA Second Quarter 2016 Highlights

Revenues: \$71.1M EBITDA: (\$14.3M) Loss

June 30, 2016 Cash Balance of \$91.3M

• \$16.3M Cash Flows from Operating Activities
• \$21.2M Bond (REC02) Retired in May 2016
• Indemnification Loan Not Called in Second Quarter 2016

FBR Production Restarted in Moses Lake

• Silane III Restarted in May 2016 Currently Producing Near Capacity
• Silane IV Currently in Restart

Substantial Increase in Solar Grade Polysilicon Prices

• 9.7% Solar Grade Polysilicon Price Increases

REC Silicon ASA Q2 2016 Key Metrics

Polysilicon Volumes **

Total Sales Volume 3,634MT

Inventory Reduction 1,963MT

FBR Production
Actual	1,026MT
Guidance*	1,370MT
Deviation	-25.1%

Total Polysilicon Production			Semiconductor Production		Silicon Gases Sales Vol.
Actual	1,671MT	Actual	155MT		Actual	610MT
Guidance*	2,020MT	Guidance*	190MT		Guidance*	800MT
Deviation	-17.3%	Deviation	-18.2%		Deviation	-23.8%

* Guidance presented May 3, 2016 ** Excludes Fines and Powders

FINANCIAL REVIEW

Revenues - \$71.1M

• › 3.2% Increase from Q1 2016
• › Decreased Polysilicon Sales Volumes (Excluding Fines & Powders)
• (5.8%) Sales Volume Decrease from Q1 2016
• 9.7% Solar Grade Price Increase from Q1 2016
• › Silicon Gas Sales Volumes 610MT
• 14.8% Sales Volume Increase from Q1 2016
• Silane Price Decrease of (2.8%) From Q1 2016

EBITDA – Loss of (\$14.3M)

• › Inefficiency due to Capacity Curtailment in Moses Lake
• › Electricity Refund of \$5.9M in Other Income

Revenues EBITDA

7 © REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Q2 2016 Cash Flows

Cash Flows From Operating Activities \$16.3M

• › EBITDA Loss of (\$14.3M)

• › Working Capital Decrease \$36.9M Decreased Inventories \$28.0M Decreased Accounts Receivable \$12.8M Includes \$5.0M Customer Prepayment

• Decreased Accounts Payable (\$4.0M)

• › Interest payments (\$7.4M)

Cash Outflows From Investing Activities – CapEx (\$3.3M)

Cash Outflows From Financing Activities – (\$21.2M)

› Repayment of NOK 179.5M Bond (REC02)

Currency Loss of (\$1.7M)

Nominal Debt - \$188M

• › Decreased by \$22.7M in Q2 2016
• \$21.2M Maturity of NOK Bond (REC02)
• Decreased by \$1.5M due to Weaker US Dollar

Nominal Net Debt - \$97M

• › Decreased by \$12.6M in Q2 2016
• Decrease in Cash of \$10.2M
• Decrease in Nominal Debt of \$22.7M

USD million

Indemnification Loan (NOK)

• 2018 NOK Bond (May 2018)
• 2018 USD Convertible Bond (Aug 2018)

Market Expectations for H2 2016

I.H.S PV Demand Market Tracker Q2 2016 GTM Research: Global Solar Demand Monitor Q2 2016 Photon Consulting June 2016

11 © REC Silicon ASA. All rights reserved. Confidential July 21, 2016 I.H.S PV Demand Market Tracker Q2 2016

› Polysilicon Demand Driven by Wafer Production

› Wafer Production Driven by Increased PV Installations in Q4 2016 and 2017

Quarterly Wafer Production Forecast

25

Source: I.H.S Technology PV Integrated Tracker Q2 (June 2016)

12 © REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Polysilicon Spot Price Rebounds in H1 2016

• › REC Silicon Average Solar Grade Sales Price Increased 9.7% vs. Q1 2016
• › Average Solar Spot Market Price Increased 21.1% vs. Q1 2016
• › Spot Price Increase Due to:
• Continued Strong End Use Demand
• High Wafer Capacity Utilization

Increased Crucible Share Drives Demand Outside China

• › Leverage Low Cost to Increase Market Access
• › Successful Customer Qualifications

Reduced Reliance on Markets in China

• › Discounts to Maximize Sales Volumes
• › Increased Crucible Share
• › Increased Wafer Capacity Utilization

Note: Includes Fines & Powders

15 © REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Increased Sales Volume and Stable Inventory in H2 2016

16 © REC Silicon ASA. All rights reserved. Confidential July 21, 2016

FBR Production Resumes Resulting in Industry Leading Cost

Polysilicon Production

FBR Cost

Capacity (MT/yr)

›Silicon Gas Sales Volumes 610 MT

• 14.8% Volume Increase vs. Q1 2016
• 2.8% Silane Gas Price Decrease vs. Q1 2016
• ›Increased Demand Expected in H2 2016
• Q3 2016 Sales Increase to 800MT
• Q4 2016 Sales Increase to 900MT

U.S./ CHINA TRADE DISPUTE UPDATE

U.S. / China Trade Dispute Update

› SolarWorld Under Pressure

• Hemlock Comprehensive Win Against Solarworld in Lawsuit on July 13, 2016
• Trade Dispute Resolution has Value for Hemlock

› MOFCOM and USTR Continue to Focus on Trade Dispute Resolution

• Administration Change Could Create Risk for all Stakeholders
• Renewed Momentum to Resolve Solar and Polysilicon Trade Disputes

YULIN JV UPDATE

Yulin JV – On Track for H2 2017 Start-up

Yulin Plant Production Capacity:

• › 19,000MT Granular Polysilicon
• FBR-B: Next Generation Technology
• › 300MT Siemens Polysilicon
• Semiconductor Grade
• › 500MT Silane Gas Loading

Yulin JV – Current Status

• › Zero Project Safety Incidents
• › Detailed Design Engineering: 85% Complete
• › Procurement: 85% Complete
• › Structural Steel Installation Underway
• › Equipment Installation Contracts Awarded
• Mobilized in Q2 2016
• › Training Underway at Moses Lake and Butte
• 50 JV Employees from China Trained by REC Experienced Personnel

GUIDANCE

FBR Production		FBR Cash Cost
Q3	3,830MT	Q3	\$12.0/kg
Q4	4,710MT	Q4	\$10.1/kg
2016	10,741MT	2016	\$14.6/kg

Total Polysilicon Production
Q3	4,490MT
Q4	5,520MT
2016	13,618MT

Semiconductor Production
Q3	250MT
Q4	260MT
2016	1,016MT

Silicon Gas Sales
Q3	800MT
Q4	900MT
2016	2,840MT

CapEx *
Maintenance	\$ 9M
Expansion	\$ 2M
2016 Total	\$11M

* CapEx Excludes any potential impact due to the July 1, 2016 Incident at the Moses Lake facility.

REC Silicon Summary & Outlook

• › June 30, 2016 Cash Balance of \$91.3M
• Retired NOK Bond (REC02) of \$21.2M in May 2016
• Improved Liquidity
• › Silane III Restarted, Q3 FBR Volume 3,830MT and Cash Cost Expected at \$12.0/kg
• Silane IV in Restart
• › Q2 Polysilicon Sales of 3,634MT in Line with Expectations
• Increased Sales Expected in Q3
• › Q3 Market for Polysilicon Expected to Remain Stable
• Some Uncertainty in the Following Quarters
• Silicon Gas Market Expected to Improve during H2 2016
• › Positive Development in Trade Dispute, Uncertainty Remains
• › Yulin JV on Track for Start-up H2 2017

November 2, 2016