REC Silicon

Investor Presentation • Aug 17, 2022

SECOND QUARTER 2022

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 2022 results on August 17, 2022. 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.

• › Second Quarter Highlights
• › Financial Review
• › Semiconductor Materials
• › Solar Materials
• › Strategic Plan Update

SECOND QUARTER HIGHLIGHTS

Revenues: \$45.0M EBITDA: (\$ 1.1M)

June 30, 2022 Cash Balance of \$173.0M

• Cash Decrease During Q2 2022 of (\$31.0M)
• (\$17.6M) Cash Outflows from Operating Activities
• (\$12.8M) Cash Outflows From Investing Activities
• (\$ 0.6M) Cash Outflows From Financing Activities

Silicon Gas Sales

• Sales Volume of 852MT
• Silane Price Decrease (0.4%) vs. Q1 2022

Semiconductor Segment Polysilicon Sales

• Semiconductor Grade Polysilicon Sales of 333MT
• Total Polysilicon Sales of 471MT (76%)
• Total Average Price Increase 5.8% vs. Q2 2022

Moses Lake Restart

• Modification of FBR Reactors Underway
• First Production Target of Q4 2023 Unchanged

Market for Solar Grade Polysilicon and Silane Gas

• Polysilicon MOU with Hanwha Solutions Executed
• Discussions Underway for Silane to LIB Anodes with Hanwha Corporation

Revenues \$45.0M - Polysilicon Sales Volume Increase by 76% vs. Q1-22 - Silicon Gas Sales Volume Increase by 62% vs. Q1-22	(Millions USD)	Q2-22	Q2-21	2022	2021	Q1-22
	Semiconductor Materials Solar Materials Other	\$ 44.9 0.0 0.1	\$ 35.5 0.0 0.1	\$ 79.4 0.0 0.1	\$ 142.8 0.1 0.2	\$ 34.5 - 0.0
EBITDA (\$1.1M)	Revenues	\$ 45.0	\$ 35.6	\$ 79.6	\$ 143.2	\$ 34.6
- Continuing Impact of: High Energy Costs - Supply Disruptions - Solar Materials Segment - Net Expense of \$3.3M - Increase of \$0.5M vs. Q1-22 - Increase is due to Restart Activities	Semiconductor Materials Solar Materials Other EBITDA EBITDA Margin	\$ 7.5 (3.3) (5.2) \$ (1.1) (2.4%)	\$ 11.5 1.2 (4.8) \$ 7.9 22.2%	\$ 18.2 (6.1) (9.6) \$ 2.5 3.1%	\$ 33.4 (5.7) (20.0) \$ 7.7 5.4%	\$ 10.7 (2.8) (4.4) \$ 3.6 10.3%
Other - Net Expense of \$5.2M - Increase of \$0.8M vs. Q1-22 - Increase is due to Restart Activities	Polysilicon Production Polysilicon Sales	390 MT 471 MT	321 MT 485 MT	761 MT 738 MT	1,225 MT 372 1,636 MT 267
	Silicon Gas Sales	852 MT	819 MT	1,616 MT	3,078 MT	764 MT

SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE

Revenues \$44.9M

• 30% Increase in Revenues vs. Q1-22
• Polysilicon Sales Volume 76% Increase vs. Q1-22
• Semiconductor Grade Polysilicon Increase by 78%
• Polysilicon Sales Price 6% Increase vs. Q1-22
  • Semiconductor Grade Polysilicon Increased by 3%
• Silicon Gas Sales Volume 12% Increase vs. Q1-22
• Silane Gas Sales Price Unchanged vs. Q1-22

EBITDA Contribution \$7.5M

• (\$3.2M) Decrease in EBITDA Contributed vs. Q1-22
• Continued Adverse Impacts of High Energy Costs and Supply Chain Disruption
• Higher Production Volumes
  • 5% Increase in Polysilicon Production vs. Q1-22 (18MT)
  • 11% Increase in Silane Production vs. Q1-22 (131MT)

Sales Volumes
	Q2-22	Q2-21	2022	2021	Q1-22
Semiconductor Grade	333 MT	375 MT	521 MT	1,117 MT	188 MT
Other Grades Polysilicon Sales	137 MT 471 MT 466 MT 738 MT			91 MT 217 MT 453 MT 1,570 MT	79 MT 267 MT
Silicon Gas Sales	852 MT	819 MT	1,616 MT	3,078 MT	764 MT

CASH FLOWS

Cash Flows From Operating Activities (\$17.6M)

• (\$1.1M) EBITDA
• (\$0.1M) Working Capital Decrease
  • \$2.0M Decrease in Inventories
  • (\$5.3M) Increase in Receivables
  • \$3.2M Increase in Payables
• (\$7.9M) Fx Loss
• (\$8.5M) Interest Paid
• (\$0.4M) Pension Plan Contributions (US Plan)
• \$0.3M Changes in Other Assets & Liabilities

Cash Outflows From Investing Activities (\$12.8M)

• (\$12.8M) Capital Expenditures

Cash Outflows From Financing Activities (\$0.6M)

• (\$ 0.6M) Payment of Lease Liabilities

Cash Flows (USD Million)

DEBT

\$110.0 Jun. 2022 \$173.0 \$2.3 \$113.9 \$8.1 \$9.1 \$10.2 Cash 2022 2023 2024 2025 2026 Available Debt Maturities by Year Debt Maturity Profile (USD Million) USD Senior Secured Bond Lease Liabilities

Nominal Debt \$185.9M

• (\$0.6M) Decrease During Q2-22
  • (\$0.6M) Changes in Lease Liabilities

Nominal Net Debt \$12.9M

• \$30.4M Increase During Q2-22
  • \$31.0M Decrease in Cash
  • (\$ 0.6M) Decrease in Nominal Debt

SEMICONDUCTOR MATERIALS

SECOND QUARTER 202 2

Silicon Gas Sales

• 852MT Shipped in Q2-22
  • 12% Volume Increase vs Q1-22 Due to Module Returns
  • Supply Chain Constraints Continue to Limit Shipments
    • Limited Availability of Bookings
    • Delays in Module Returns
• Silane Price Broadly Unchanged vs. Q1-22

Demand Expected to Remain Strong

• Q3-22 Sales Volumes
  • Expect Supply Chain Constraints to Continue
  • Potential Softening Demand for Flat Panel Displays
• Anticipated Increases to Long-Term Demand
  • Startup of New Semiconductor Wafer Fabs
  • Impact of CHIPS and Science Act

Silicon Gas Sales Volumes (MT)

SEMICONDUCTOR GRADE POLYSILICON

Semiconductor Grade Polysilicon Sales

• 333MT Shipped in Q2-22
  • Sales Volumes Reflect Normal Seasonal Variation
  • Increase of 76% vs. Q1-21 Sales Volumes
• Semiconductor Grade Prices Increased by 3% vs. Q1-22
  • Total Average Polysilicon Prices Increased by 6%

Demand Continues to Remain Strong

• Q3-22 Sales Volumes Reflect:
  • Efforts to Mitigate High Energy Costs
  • Planned Maintenance Outage During Q3-22
• 2022 Order Visibility High
  • ~90% of Production Sold Out
• Anticipate Increases in Electricity Costs

Semiconductor Grade Polysilicon Sales Volumes (MT)

Note: Excludes 165MT of Non-Recurring Teardrop Sales in Q2'21

SOLAR MATERIALS

SECOND QUARTER

MOSES LAKE RESTART UPDATE

Restart Activities Underway

• Target:
  • 1 st Production in Q4-23
  • 50% Capacity Utilization During Q2-24
  • 100% Capacity Utilization During Q4-24
• Current Activities:
  • Procurement of Equipment and Materials Underway
  • Modification of FBR Reactors Underway
  • Initial Hires for Positions Critical to Restart Activities
  • Working to Complete Detailed Engineering and Construction

Offtake Contracts for Solar Grade Polysilicon and Silane Gas

• MOU Executed with Hanwha Solutions for Polysilicon
  • Negotiations Underway to Complete Supply Contract
• Discussions Ongoing with Hanwha Corporation for Silane
• Current Market Developments Strengthen Offtake Opportunities

GOVERNMENT INITIATES

Inflation Reduction Act

• Passed Senate on August 7, 2022
• Passed House of Representatives on August 13, 2022
• Awaiting President Biden's Signature
• SEMA is Included in the Inflation Reduction Act
  • Refundable Tax Credit for \$3/kg of Solar Polysilicon Manufactured
• Will Drive Investment in US Based Solar Supply Chain

CHIPS & Science Act of 2022

• Signed by President Biden on August 9, 2022
• \$52 Billion to Expand Semiconductor Manufacturing in the US
• Expected to Support Increased Demand for Semiconductor Grade Polysilicon and Silicon Gases

Infrastructure Investment and Jobs Act

• Signed by President Biden on November 15, 2021
• \$6 Billion to Support Critical Battery Supply Chains
• Includes Provisions to Drive to Adoption of Clean Energy Technologies

RESTART FUNDING PERSPECTIVES

\$150M Estimated Capital Expenditures

• Modification of 12 FBR Reactors (100% Capacity)
• Packaging and Handling
• Polysilicon Analytical Lab

Funding Structure Dependent Upon:

• Capital Expenditures
• Senior Secured Bond Refinancing
• Offtake Contract Terms
• Cost of Capital

Multiple Funding Sources Under Consideration

• Debt
• Debt Hybrids
• Equity

STRATEGIC PLAN

Megatrends to Support REC Silicon Growth

• Technology Semiconductor Materials
• Renewable Energy Solar Materials
• Energy Storage Silane Gas Capability

Semiconductor Materials

• Stable Cashflows in Markets with Stable Growth
• CHIPS and Science Act Expected to Increase Demand for Semiconductor Product Offerings

Solar Materials

• Superior FBR Technology Affords Low Cost and Ultra Low Carbon Footprint
• Inflation Reduction Act Expected to Drive Investment in US Based Solar Supply Chain

Battery Materials

• Unique Position as Only Large-Scale Source of Silane in North America and Europe
• Infrastructure and Jobs Act Includes \$6 Billion to Develop US Based Battery Supply Chains

Q3 2022 Reporting November 16, 2022

www.recsilicon.com