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REC Silicon Investor Presentation 2026
3726_rns_2026-05-07_d843d046-162c-40fb-aa77-499df184d5ad.pdf
Investor Presentation
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RECSILICON
First Quarter 2026 Presentation
Kurt Levens, CEO
Jack Yun, CFO
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
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.
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 ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
A SILICON MATERIALS COMPANY PROVIDING ENABLING MATERIALS FOR THE DIGITAL REVOLUTION AND ENERGY INDUSTRY
RECS1 CON
Agenda
- Highlights and Updates
- Financial Review
- Strategic Development and Financing
- Summary
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
HIGHLIGHTS AND UPDATES
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Highlights and Updates
- EBITDA from continuing operations of ($3.8M)
- Silicon Gas sales varied by segment
- Outlook continues to be application and project dependent
- $10.0M short-term loans from Anchor AS finalized
- Completion of NOK 972.6M in new equity raise
- Repayment of $30M to Hanwha Qcells in April
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
Butte Silicon Gases
Silicon gas sales
- 515 MT shipped in Q1'26 vs 540 MT in Q4'25
Silicon Gas market starting to see signs of stabilization
- Oversupply still affecting pricing in Silane particularly non semiconductor applications
- Seeing volume improvements in select logic and memory applications for our other Silicon Gas molecules
- Capital investments continue in key focus markets, especially North America
- Delays in North American PV and Anode Material projects
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
FINANCIAL REVIEW
8 © REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Group Earnings
> Revenues $19.5M
- Silicon gas sales volume decreased of 4.7% vs. Q4'25
> EBITDA ($3.8M)
> Butte segment
- EBITDA of $2.2M
> Moses Lake segment
- EBITDA of ($2.4M)
- Net expense of $3.5M
- Other income of $1.1M primarily due to gain from refund of previously paid utility tax
> Other
- Net expense of $3.6M
| (Millions USD) | Q1 2026 | Q1 2025 | YEAR 2025 | Q4 2025 |
|---|---|---|---|---|
| Butte | $ 19.5 | $ 21.4 | $ 78.1 | $ 20.1 |
| Moses Lake | 0.0 | 0.0 | 0.0 | 0.0 |
| Other | 0.0 | 0.0 | 0.1 | 0.0 |
| Revenues | $ 19.5 | $ 21.4 | $ 78.2 | $ 20.1 |
| Butte | $ 2.2 | $ 1.2 | $ 2.7 | $ 1.6 |
| Moses Lake | (2.4) | (1.1) | 4.1 | (1.7) |
| Other | (3.6) | (4.9) | (15.3) | (3.0) |
| EBITDA | $ (3.8) | $ (4.9) | $ (8.5) | $ (3.1) |
| EBITDA Margin | (19.6%) | (22.8%) | (10.9%) | (15.2%) |
| Silicon Gas Sales | 515 MT | 560 MT | 2,194 MT | 540 MT |
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© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Butte Operations
> Revenues $19.5M
- 3.1% decrease in revenues vs. Q4'25
- Polysilicon sales volume as planned
- Silicon gas sales volume – 4.7% decrease vs. Q4'25
- Silicon gas sales price – 0.3% decrease vs. Q4'25
> EBITDA contribution $2.2M
- $0.5M increase to EBITDA contributed vs. Q4'25
- New cost reduction opportunities identified
- Previous cost reduction capex showing positive results
| Silicon Gas Sales | Q1-26 | Q1-25 | 2025 | Q4-25 |
|---|---|---|---|---|
| 515 MT | 560 MT | 2,194 MT | 540 MT |
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Cash Flows
- March 31, 2026, cash balance $5.2M
-
$2.1M decrease in cash during Q1'26
-
Cash flows from operating activities ($10.3M)
- $0.9M Cash from discontinued operations
- ($3.8M) EBITDA
- $1.4M working capital
- $1.0M decrease in inventories
- ($1.9M) increase in receivables/prepayments
- $2.7M increase in payables and accruals
- ($8.8M) interest items
- (9.2M) interest paid
-
$0.4M interest received
-
Cash flows from investing activities ($0.2M)
-
($0.2M) capital expenditures
-
Cash flows from financing activities $8.4M
- $10M proceeds from borrowing
- ($1.6M) payment of lease liabilities
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Financial Position
> Nominal debt $501.5
- $10.4M increase during Q1'26
- $10.8M increase in term loans and guarantee fees
- ($0.4M) changes in lease liabilities
> Nominal net debt $496.3M
- $12.5M increase during Q1'26
- $2.1M decrease in cash
- $10.4 increase in nominal debt
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
STRATEGIC DEVELOPMENT AND FINANCING
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Quick and Aggressive Response to Current Realities
| Market Context | REC Silicon Response | Strategic Focus |
|---|---|---|
| Short-term | • FPD/PV market challenged by utilization and oversupply | |
| • Delays in US Semi Fab, PV Fab and Si Anode construction | ||
| • Some Semiconductor segments showing recovery | ||
| • Continued Tariff & Policy Uncertainty | • Continuing Moses Lake site cost reduction QTR/QTR | |
| • Continued optimization of Butte operations for cost reduction and product mix | ||
| • Focus on improvement in baseline underlying silicon gas sales | ||
| • Expansion of targeted Silicon Gas molecules at key end users | ||
| Medium to longer-term | • US Semi Fabs nearing completion | |
| • Si Anode uncertainty around qualification success and timing | Preserving existing positions in Semi and FPD | |
| Targeting key end users and technology nodes | ||
| Preparing for Semi and PV recovery short to mid-term | ||
| Positioning for Si Anode opportunity long term |
14 © REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Securing a sustainable financial platform
2025 financing developments
REC Silicon has made continuous efforts to secure short-term financing while progressing longer-term financing options
- $20M addition and extension of existing $30M of Standard Chartered credit facility
- $60M additions and extension of existing $50M short-term bridge loan from Hanwha International LLC
- $10M and $20M short-term bridge loan from Hanwha Global Americas and Anchor AS, respectively
- Offer for outstanding shares from main owner Anchor AS
Funding of ongoing operations
2026 initiatives
- Borrowing of $10.0M short-term loans from Anchor AS in January 2026
- Refinancing of $110M term loan with KEB Hana Bank in March 2026
- Extension of $7M short term loan with Anchor AS in April 2026
- NOK 972.6M rights issue in April 2026
Long-term financial restructuring
REC Silicon does not have sufficient available cash to meet debt service and other anticipated operating cash flow requirements for the year.
- Requires additional financing beyond the existing debt facilities, either from Hanwha or from other sources of capital
- Targeting disposal of non-core assets as means to improve liquidity
- Continue to discuss additional financing with Hanwha as well as the refinancing of the remaining portion of the $450M of term loans maturing in 2026, following the refinancing and extension completed in Q1 and Q2.
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
NOK 972.6 Million Rights Issue
- Fully underwritten by Anchor AS
- Issue of 4,078,000,000 new shares
- Subscription price of NOK 0.2385 per share
- Gross proceeds of NOK 972.6 million
- Use of proceeds
- Repayment of advance payments related to offtake contract of USD 30 million
- Repayment of maturing long-term loans and short-term loans, of USD 40 million
- General corporate purposes and working capital, including operational expenses of USD 30 million
- Underwriter allocated 96% of new shares
- Anchor AS holds 93% of total shares outstanding post transaction
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© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
Update on Legal Processes
- A request for investigation pursuant to Section 5-25 of the Public Limited Companies Act was received by ASKER AND BÆRUM DISTRICT COURT. The Court set a deadline of May 7th as the last day to submit briefing after which the Court will render its decision
- Subpoena issued by a U.S. court for the delivery of certain information
- REC Silicon is complying with the Court process
© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
SUMMARY
18 © REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
RECSILICON
Summary
- Silicon Gas demand remains highly dependent on the application and project completion
- Cost reduction efforts continue; supply chains remain stable for now
- Q2'26 silicon gases shipment target 500-550 MT
- NOK 972.6M Equity raise completed in April
- Additional financing discussions and refinancing of the remaining portion of the $450M of term loans maturing in 2026, following the refinancing and extension completed in Q1 and Q2.
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© REC Silicon ASA First Quarter 2026. All rights reserved. Confidential.
Thank you.
REC Silicon ASA
Q2 2026
August 6, 2026
RECSILICON