REC Silicon

Investor Presentation • May 3, 2017

Disclaimer

FIRST 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 first quarter 2017 results on May 3, 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.

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REC Silicon Q1 Financial Results	T. Torvund, CEO
Financial Overview	J.A. May II, CFO
PV Market Outlook	T. Torvund
Silicon Gas And Semiconductor Market Outlook	T. Torvund
U.S. / China Trade Dispute Update	T. Torvund
Yulin JV Update	T. Torvund
Guidance	T. Torvund

Q & A

Revenues:	\$57.5M
EBITDA:	\$ 4.6M

FBR Cash Cost of \$10.7/kg

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

Strong Silicon Gas Sales Volumes

• Exceeded Guidance by 70 MT
• 8.8% Silane Gas Price Decrease Due to Different Sales Mix

March 31, 2017 Cash Balance of \$80.9M

• Cash Increase of \$15.2M
• Decrease in Working Capital Investment
• Expect to Remain Near Cash Neutral Throughout 2017
• No Debt Maturities in 2017

Yulin JV on Track for Start-up in Second Half of 2017

Polysilicon Sales Volume **
Total	2,509MT
Inventory Increase	618MT

FBR Production
Actual	2,416MT
Guidance*	2,320MT
Deviation	4.1%

Total Polysilicon Production
Actual	3,127MT
Guidance*	3,080MT
Deviation	1.5%

Semiconductor Production
Actual	271MT
Guidance*	350MT
Deviation	-22.6%

Silicon Gases Sales Vol.
Actual	820MT
Guidance*	750MT
Deviation	9.4%

** Guidance Presented February 16, 2016

** Excludes Fines and Powders

5 © REC Silicon ASA. All rights reserved. Confidential May 3, 2017

2017

Revenues - \$57.5M

• › 28.5% Decrease vs. Q4 2016
• › Polysilicon Sales Volumes 2,509 MT (Excluding Fines & Powders)
• 34.0% Sales Volume Decrease vs. Q4 2016
• 9.5% Solar Grade Price Increase vs. Q4 2016
• › Silicon Gas Sales Volumes 820 MT
• Continued Strong Sales Volumes
• 8.8% Silane Price Decrease vs. Q4 2016

EBITDA of \$4.6M

• › Reflects:
• FBR Cash Cost of \$10.7/kg
• Other Income of \$1.2M
• \$1.8M Collection of Reserved Accounts Receivable
• Continued Strong Silicon Gas Sales Volumes

Cash Flows 2017

Cash Flows From Operating Activities \$15.7M

• › EBITDA of \$4.6M
• › Working Capital Decrease \$13.1M
• Decreased Accounts Receivable \$15.0M
• Increased Accounts Payable \$0.9M
• Increased Inventories (\$2.8M)
• › Interest payments (\$1.8M)

Cash Outflows From Investing Activities (\$0.8M)

› (\$0.8M) CapEx

Liquidity at March 31, 2017 2017

Nominal Debt - \$186M

› Unchanged Compared to Q4 2016

Nominal Net Debt - \$106M

• › Decreased by \$15M in Q1 2017
• Increase in Cash of \$15.2M

Indemnity Loan (Included in Net Debt)

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

JV Equity Contribution

• › Continued Negotiations to Defer Remaining Contributions Until After 2018
• › Agreements Permit Company to Forego Making Remaining Contribution if Unable to Pay

PV MARKET OUTLOOK

Strong Global PV Demand Through 2021 2017

• › 70% of 2017 PV Market Demand will Come from Top Four Markets: China, U.S., India, and Japan
• › Lower System Costs Support Demand Growth in New Regions and Emerging Markets
• › 64 GW of Capacity from 2017- 2021 Expected from Emerging Markets, Including: GW
• Brazil
• Mexico
• South Africa

Source: IHS Markit, Technology Group, PV Demand Market Tracker – March 31, 2017

FIRST QUARTER

Increased Annual Analyst Installation Forecasts 2017

GW

• › Despite Variability, Market Forecasts Show Increased Demand
• › Record Low Price Levels in India and Emerging Markets Driving Greater Demand
• › Drivers in Many Markets:
• − Increasing Demand for Electricity
• − Greater Electrification
• − Lower LCOE than Conventional Energy

Source: IHS Markit, Technology Group, PV Demand Market Tracker – March 31, 2017

2017 Quarterly Module Installations by Region 2017

25

• › I.H.S. Continues to Expect Higher Installations in Q2 Than Q1
• China Accounts for Roughly 40% of H1 2017 Demand
• China 2016 FIT Grace Period Expires June 30, 2017, but Rumors of Further Extension
• H2 2017 Installations in China Also Dependent on Timing of 2017 FIT Expiration
• › More Balanced Demand Profile in H2 2017 Predicted Compared to H2 2016
• Strong Demand in India, Americas and Europe Offsets Slowdown in China

Source: IHS Markit, Technology Group, PV Demand Market Tracker – March 31, 2017

IHS 2017F Quarterly Installations

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

FIRST QUARTER

Polysilicon Spot Price Rebounds in H1 2017 2017

Copyright © 2017 PVinsights.com All rights reserved

FIRST QUARTER

FIRST QUARTER REC Silicon Remains Cost Leader of Outside China Polysilicon Manufacturers at Half Capacity

Continued Alignment of FBR Production with Market Demand 2017

Note: Excludes Fines & Powder

SILICON GAS AND SEMICONDUCTOR MARKET OUTLOOK

2017

Lowest Cash Cost and Highest Production Capacity

• › REC Silicon Maintains Lowest Silane Cash Cost and High Production Capacity

• › Leader in Value Added Services, Consistency, Safety, Redundancy, and Responsibility

• ›Strong Silicon Gas Sales Volumes Despite Historically Weak First Quarter

• -820 MT Compared to Guidance of 750 MT
• -35% Increase Compared to Q1 2016 Sales Volumes
• ›Q2 2017 Sales Volumes Expected to Remain at Comparable Level
• ›8.2% Lower Silane Sales Prices on Account of Different Sales Mix

2017 Stable Growth in Semiconductor Silicon Wafer Demand

• › Wafer Demand is a Driver of Semiconductor Grade Polysilicon and Silane Gas Demand
• › Consistent, Stable Growth Expected in Semiconductor Market
• › Wafer Suppliers Seeking Long Term Contracts Amid Tight Supply

Sources: Semi Spreadsheet: 3rd Qtr, Sage 2016 Polysilicon Report, Table 8-1,, Linx-Consulting, April. 25, 2017

U.S./ CHINA TRADE DISPUTE UPDATE

US / China Solar Trade Dispute Continues 2017

• › Higher Prices Inside China Continue
• › China Investigation of Korean Polysilicon On-going
• › Following Recent Xi Jinping Meeting with Trump in Florida, US and China Focus on Trade Wins and Cooperation
• › New USG Rhetoric Suggests It Values US Polysilicon Manufacturing Capacity – Material Potential Contributor to Reduction in Trade Deficit

YULIN JV UPDATE

Yulin JV – On Track for H2 2017 Start-up 2017

Construction Progressing

• › Over 6.3 Million Man-hours Worked To Date - No Reported Safety or Environmental Incidents
• › Majority of Project Equipment and Supplies On-site, Quality Testing of Welded Pipe, Electrical and Instrumentation Systems Underway
• › REC Silicon Commissioning Team and Start-up Support Personnel Already On-site in Yulin

Capital Contributions

• › Continued Negotiations to Defer Remaining Contributions Until After 2018
• › Agreements Permit Company to Forego Making Remaining Contribution if Unable to Pay

GUIDANCE

FBR Production		FBR	Cash Cost		Total Polysilicon Production
Q2	2,350MT	Q2	\$11.0/kg	Q2	3,040MT
2017	9,510MT	2017	\$11.0/kg	2017	12,320MT

Semiconductor Production		CapEx Silicon Gas Sales		*
Q2	280MT	Q2	800MT		Maintenance	\$10M
2017	1,060MT	2017	3,300MT		Expansion	\$ 0M

** Additions to Property Plant and Equipment

2017 Total \$10M

Financial Options: 2018 Bonds and the Yulin JV Contribution

Nominal Net Debt - \$120M

• › 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

• › Continued Negotiations to Defer Remaining Contributions Until After 2018
• › Agreements permit company to forego making remaining contribution if unable to pay

FIRST QUARTER

2017

July 20, 2017