REC Silicon — Investor Presentation 2017

Jul 20, 2017

SECOND QUARTER

2017

PRESENTATION

Disclaimer

SECOND 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 second quarter 2017 results on July 20, 2017. 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.

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REC Silicon Q2 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

Revenues:	\$61.4M
EBITDA:	\$ 1.3M

FBR Cash Cost of \$11.0/kg

• FBR Facility Continues Operation at ~50% Capacity Utilization
• Demonstrates Low Cost Capability at Reduced Production Rates

Strong Silicon Gas Sales Volumes

• Sales Volume of 808MT (1.5% Decrease)
• 1.6% Silane Gas Price Increase

June 30, 2017 Cash Balance of \$71.4M

• Cash Decrease of (\$9.4M)
• Increase in Working Capital Investment
• No Debt Maturities in 2017
• Draft Income Tax Ruling Could Impact Liquidity

Yulin JV Start-up Scheduled for Q4 2017

Polysilicon Sales Volume **
Total	2,960MT
Inventory Increase	81MT

FBR Production
Actual	2,380MT
Guidance*	2,350MT
Deviation	1.3%

Total Polysilicon Production
Actual	3,057MT
Guidance*	3,040MT
Deviation	0.6%

Semiconductor Production
Actual	253MT
Guidance*	280MT
Deviation	-9.5%

Silicon Gases Sales Vol.
Actual	808MT
Guidance*	800MT
Deviation	0.9%

** Guidance Presented May 3, 2017

** Excludes Fines and Powders

5 © REC Silicon ASA. All rights reserved. Confidential July 20, 2017

Polysilicon Production and FBR Cost 2017

SECOND QUARTER

4,410 2,863 2,321 1,175 1,026 3,354 2,308 2,416 2,380 0 1,000 2,000 3,000 4,000 5,000 6,000 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016 2017 Silicon Production (MT) Polysilicon Production FBR Cost (\$/kg) FBR Cost

6 © REC Silicon ASA. All rights reserved. Confidential July 20, 2017

Continued Strong Silicon Gas Sales 2017

›Silicon Gas Sales Volumes 808MT

• Decreased 1.5% Compared to Q1'17
• Increased 32.5% Compared to Q2'16
• Stable Silane Gas Prices

›Q3 2017 Sales Volumes Expected to Increase to 840MT

Silicon Gases

FINANCIAL REVIEW

Revenues - \$61.4M

• › 6.8% Increase vs. Q1'17
• › Polysilicon Sales Volumes 2,960MT (Excluding Fines & Powders)
• 18.0% Sales Volume Increase vs. Q1'17
• (6.9%) Solar Grade Price Decrease vs. Q1'17
• › Silicon Gas Sales Volumes 808MT
• Continued Strong Sales Volumes
• 1.6% Silane Price Increase vs. Q1'17

EBITDA of \$1.3M

• › Reflects:
• \$2.5M Collection of Reserved Trade Receivables
• Solar Grade Price Decrease
• FBR Cash Cost of \$11.0/kg
• Butte Unplanned Partial Production Interruption

Cash Flows 2017

Cash Outflows From Operating Activities (\$9.4M)

• › EBITDA of \$1.3M
• › Working Capital Increase (\$4.1M)
• Decreased Accounts Payable (\$2.3M)
• Increased Accounts Receivable (\$1.7M)
• Increased Inventories (\$0.1M)
• › Interest payments (\$7.0M)
• › US Tax Refund \$0.6
• › Other (\$0.3M)

Cash Outflows From Investing Activities (\$1.5M)

• › CapEx (\$1.2M)
• › Restricted Cash (\$0.3M)

Currency Gain of \$1.4M

Liquidity at June 30, 2017 2017

Nominal Debt - \$188M

• › Increased by \$2M in Q2'17
• Due to Weaker USD Relative to NOK

Nominal Net Debt - \$117M

• › Increased by \$11M in Q2'17
• Decrease in Cash of \$9M
• Increase in Nominal Debt of \$2M

Reassessment of Tax

• › Draft Ruling from Norwegian Central Tax Office
• › Potential \$30M Payable with Final Ruling
• › Uncertain Timing and Outcome

Indemnity Loan (Included in Net Debt)

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

JV Equity Contribution

• › Negotiations Continue to Defer Remaining Contribution
• › Agreements Allow REC to Forego Remaining Contribution if Unable to Pay

PV MARKET OUTLOOK

SECOND QUARTER

2017

Strong Global PV Demand Through 2021 2017

• › Strong Chinese Demand During H1'17
• › Uncertainty Remains for H2'17 and Following Years
• › Demand in India and Americas Expanding
• › India Dependent Upon Incentives
• › US Dependent Upon Trade Policy
• › Increasing Importance of

2016-2021F PV Installations by Region

Source: IHS Markit, Technology Group, PV Demand Market Tracker, July 2017

2017 Quarterly Module Installations by Region

25.0

• › China Installed ~14.3GW During 1st Half
• Forecast ~12.4GW During 2nd Half
• › India Installed ~4.4GW During 1st Half
• Forecast ~5.6GW During 2nd Half
• › Americas Installed ~6.6GW During 1st Half
• Forecast ~9.5GW During 2nd Half
• US Acceleration Due to Suniva 201 Petition

IHS 2017F Quarterly Installations

Europe Middle East and Africa Americas China Japan India Rest of Asia

Source: IHS Markit, Technology Group, PV Demand Market Tracker, July 2017

Polysilicon Spot Price 2017

• › Inside China Prices Increased at the End of 2nd Quarter
• › REC FBR Prime Prices Remained Stable Through 2nd Quarter
• › Expect Stable Prices During 3rd Quarter

JUN	JUL	AUG	SEP	OCT	NOV	DEC	JAN	FEB	MAR	APR	MAY	JUN
2016 2016						2017

Copyright © 2017 PVinsights.com All rights reserved

²⁰¹⁷ REC Silicon Remains Cost Leader (Despite Capacity Curtailment)

© REC Silicon ASA. All rights reserved. Confidential July 20, 2017

SECOND QUARTER

FBR Production Aligned with Demand 2017

Note: Excludes Fines & Powder

U.S./ CHINA TRADE DISPUTE UPDATE

US / China Solar Trade Dispute Continues 2017

AD/CVD

• › US Government and MOFCOM are Working Towards a Resolution
• US Polysilicon Companies Work Together with SolarWorld and CCCME
• › SolarWorld AG (Europe) Filed for Insolvency
• SolarWorld Americas Inc. Not Included

Section 201

• › Suniva Petition Could Delay Trade War Resolution
• Industry Analyst Predict Acceleration of PV Installations in the US
• SEIA is Actively Seeking a Resolution
• Final Decision Expected in 2018
• Withdrawal/Settlement is Possible

YULIN JV UPDATE

Yulin JV - Start-Up Status 2017

• › First Silane Unit and FBR Reactors Startup in Q4 2017
• › Second Silane Unit and Remaining FBR Reactors Startup in Q1 2018
• › Total Investment Within Budget of \$1.25 Billion
• › Negotiations Continue to Defer Remaining Contribution
• › Agreements Allow REC to Forego Remaining Contribution if Unable to Pay

GUIDANCE

FBR Production	FBR Cash Cost				Total Polysilicon Production
Q3	2,290MT	Q3	\$11.5/kg	Q3	3,070MT
2017	9,450MT	2017	\$11.0/kg	2017	12,500MT

	Semiconductor Production	Silicon Gas Sales		CapEx *
Q3	230MT	Q3	840MT	Maintenance	\$5M
2017	1,040MT	2017	3,320MT	Expansion	\$0M

** Additions to Property Plant and Equipment

2017 Total \$5M

Liquidity Resolution Options 2017

Nominal Net Debt - \$117M USD Million

• › Several Sources will be Evaluated in H2 2017 for the 2018 Bonds and Indemnification Loan
• I. Cash from Operation
• II. Refinancing
• III. Divestment of Non-core Assets
• IV. New Equity

JV Equity Contribution

• › Negotiations Continue to Defer Remaining Contribution
• › Agreements Allow REC to Forego Remaining Contribution if Unable to Pay

Have a Nice Summer