REC Silicon

Investor Presentation • May 27, 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 first quarter 2022 results on May 26, 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.

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

FIRST QUARTER HIGHLIGHTS

Revenues:	\$34.6M
EBITDA:	\$ 3.6M

March 31, 2022 Cash Balance of \$204.0M

• Cash Increase of \$93.5M
• Cash Outflows from Operating Activities of \$2.6M

Silicon Gas Sales

• Sales Volume of 764MT
• Silane Price Increase 10% vs. Q4 2021

Semiconductor Segment Polysilicon Sales

• Total Polysilicon Sales of 267MT
• Total Average Price Decrease 3% vs. Q4 2021
  • Semiconductor Grade Polysilicon Price Increase of 6%
  • Overall Favorable Price Impact due to Product Mix

Investment in REC Silicon by Hanwha Solutions

• \$109.5M Private Placement of Equity Completed
• Intend to Develop a US Based PV Supply Chain

Restart of Moses Lake FBR Targeted

• 100% Capacity Utilization by the End of 2024
• Hanwha has Proposed Offtake Contracts for All Production

FINANCIAL HIGHLIGHTS

Revenues \$34.6M

• Polysilicon Sales Volume Decrease by 44% vs. Q4-21

• Silicon Gas Sales Volume Increase by 2% vs. Q4-21

• Increase in Semiconductor Grade Polysilicon Prices

• Increase in Silane Gas Sales Prices
• Polysilicon Production Interruption
• Continuing Impact of:
  • High Energy Costs
  • Supply Disruptions

Solar Materials Segment

• Net Expense of \$2.8M
• Increase of \$0.2M vs. Q4-21

Other

• Net Expense of \$4.4M
• Decrease of \$2.7M vs. Q4-21
• Decrease is due to Year-end 2021 Accruals for Variable Compensation Plans

Q1-22		Q1-21		2021		Q4-21
\$	34.5 - 0.0	\$	28.0 0.1 0.1		0.1 0.2	\$	43.2 0.0 0.1
							43.2
\$ \$	10.7 (2.8) (4.4) 3.6 10.3%	\$ \$	10.8 (1.9) (4.9) 4.0 14.3%	\$ \$	33.4 (5.7) (20.0) 7.7 5.4%	\$ \$	9.3 (2.6) (7.1) (0.4) (1.0%)
372 MT 267 MT			MT MT		MT MT		316 MT 481 MT 750 MT
	\$	34.6 764 MT	\$	28.1 293 274 781 MT		\$ 142.8 \$ 143.2 1,225 1,636 3,078 MT	\$

SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE

Revenues \$34.5M

• (20%) Decrease in Revenues vs. Q4-21
• Polysilicon Sales Volume (44%) Decrease vs. Q4-21
  • Semiconductor Grade Polysilicon Decreased by (49%)
• Polysilicon Sales Price (3%) Decrease vs. Q4-21
  • Semiconductor Grade Polysilicon Increased by 6%
• Silicon Gas Sales Volume 2% Increase vs. Q4-21
• Silane Gas Sales Price 10% Increase vs. Q4-21

EBITDA Contribution \$10.7M

• \$1.4M Increase in EBITDA Contributed vs. Q4-21
• Higher Product Price Realizations
• Polysilicon Production Interruption:
  • Product Quality Down Grades
• Higher Polysilicon Production
• Continued Adverse Impacts of High Energy Costs and Supply Chain Disruption

Sales Volumes
	Q1-22	Q1-21	2021	Q4-21
Semiconductor Grade	188 MT	137 MT	1,117 MT	371 MT
Other Grades	79 MT		90 MT 453 MT 110 MT
Polysilicon Sales	267 MT 227 MT		1,570 MT	481 MT
Silicon Gas Sales	764 MT	781 MT	3,078 MT	750 MT

CASH FLOWS

Cash Flows From Operating Activities (\$2.6M)

• \$3.6M EBITDA
• (\$4.5M) Working Capital Increase
  • (\$7.0M) Increase in Inventories
  • \$3.3M Decrease in Receivables
  • (\$0.8M) Decrease in Payables
• (\$2.2M) Interest Paid
• \$0.6M Changes in Other Assets and Liabilities

Cash Flows From Investing Activities (\$5.7M)

• (\$5.7M) Capital Expenditures

Cash Flows From Financing Activities \$101.8M

• (\$ 0.6M) Payment of Lease Liabilities
• (\$ 7.1M) Payment of Indemnity Loan (Net)
• \$109.5M Private Placement of Equity

Cash Flows

Nominal Debt \$186.5M

- (\$11.0M) Decrease During Q1-22

• (\$10.8M) Payment of Indemnification Loans
• (\$ 0.3M) Changes in Lease Liabilities

Nominal Net Debt (\$17.5M) - Excess Cash

• (\$104.5M) Decrease During Q1-22
  • (\$93.5M) Increase in Cash
  • (\$11.0M) Decrease in Nominal Debt

Settlement of Indemnification Loans

• Agreement Reached on October 18, 2021
• Payment of \$10.7M in February 2022
  • Payment of \$3.6M from Restricted Cash

Debt Maturity Profile

SEMICONDUCTOR MATERIALS

FIRST QUARTER 202 2

SEMICONDUCTOR GRADE POLYSILICON

Semiconductor Grade Polysilicon Sales

• 188MT Shipped in Q1-22
  • Sales Volumes Reflect Normal Seasonal Variation
  • Increase of 43% vs. Q1-21 Volumes
• Average Price Decreased by 3% vs. Q4-21
  • Lower Mix of FZ Product Sales
  • Prices for Semiconductor Grade Products Increased by 7% to 10%

Demand Continues to Remain Strong

• Q2-22 Sales Volumes
  • Seasonal Volume Increase Higher than Previous Years
  • Continued Focus on Higher Value Products
• 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

Silicon Gas Sales

• 764MT Shipped in Q1-22
  • Supply Chain Constraints Continue to Limit Shipments
    • Limited Availability of Bookings
    • Delays in Module Returns
• Silane Price Increased by 10% vs. Q4-21

Demand Expected to Remain Strong

• Q2-22 Sales Volumes
  • Expect Supply Chain Constraints to Continue
• Anticipated Startup of New Semiconductor Wafer Fabs will Increase Demand
• Executing Projects to Increase Capacity of Key Gas Offerings

Silicon Gas Sales Volumes (MT)

SOLAR MATERIALS

FIRST QUARTER

PV POLYSILICON MARKET

Global PV Module Production

(Polysilicon Equivalent MT)

Actual PV Module Production (MT Polysilicon Equivalent) Forecast PV Module Production (MT Polysilicon Equivalent)

Source: PV-Tech : Solar Media Market Research March 2022

2022 Global PV Installation Forecast

• Slight Increase in Forecast Going Forward
• Covid Lockdown and Trade Issues May Impact Demand
• 260GW Forecast Installations (Prior Forecast
• 670kMT Estimated Polysilicon Demand

China Dominates Polysilicon Supply

• ~80% in 2021
• ~90% in 2022
• Price Support Through 2022 due to:
  • Capacity Utilization Rates Near 75%
  • Timing of Announced Expansions
  • Prices at the End of Q1'22 Increased by ~12% vs. Q4'21

Long-Term Outlook

• Continued Robust Demand Growth for PV Installations
  • Will Require Expansion of Polysilicon Manufacturing Capacity
• US Government Still Working on Climate Package to Support Investments in US Solar Manufacturing
• Growing Incentives to Build Solar Supply Chain Outside of China
  • Supply Requests for REC Silicon Material

MOSES LAKE RESTART TARGETED

Executing Plan to Realize 1st Production in Q4-23

• Target:
  • 50% Capacity Utilization During Q2-24
  • 100% Capacity Utilization During Q4-24
• Current Activities:
  • Execution of Engineering, Procurement, and Construction for FBR Upgrades
  • Commitments for Long Lead Items
  • Validating Staffing and Recruiting Plans
  • Working to Accelerate Timeline as Possible

• Anticipated Activities:

• `

• Additional Capital Will Be Required to Fund Restart

  • Expansion of Scope from 50% to 100% Capacity Utilization
  • Changes in Customer Requirements (Handling and Packaging)

Market for Solar Grade Polysilicon and Silane Gas

• Discussions ongoing with Hanwha Solutions and Hanwha Corporation
  • Hanwha Solutions has Proposed Offtake Contracts for Polysilicon
  • Hanwha Corporation has Proposed Offtake Contracts for Silane Gas
• Current Market Strength Results in Offtake Opportunities

STRATEGIC PLAN

Semiconductor Materials

• Stable Cashflows in Markets with Stable Growth
• Executing Projects to Enhance Product Offerings

Solar Materials

• Superior FBR Technology Affords Low Cost and Ultra Low Carbon Footprint

Battery Materials

• Unique Position as Only Large-Scale Source of Silane in North America and Europe
• Grants to Develop Battery Supply Chains Announced by US Department of Energy

Megatrends to Support REC Silicon Growth

• Technology Semiconductor Materials to Support Electrification
• Renewable Energy Low Cost, High Quality, Ultra Low Carbon Footprint Granular Polysilicon
• Energy Storage Silane Gas Capability to Support Production of Silicon Anode Materials

Q2 2022 Reporting August 17, 2022

www.recsilicon.com