Solar — Investor Presentation 2014

Jun 12, 2014

FACTORY TOUR PRESENTATION

12 June 2014

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 Solar ASA and REC Solar 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 Solar 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 Solar 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 Solar ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC Solar ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

The presentation was prepared for a factory tour on June 12, 2014. Information contained within will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

The REC Solar 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.

Agenda

Introduction to REC

Solar fundamentals and technology introduction

State-of-the-art manufacturing

Factory tour and Q&A

Listed on Oslo Stock Exchange ("RECSOL") with equity market cap. of ~USD 700m REC is an integrated solar panel manufacturer

REC leverages high-quality solar panel manufacturing, R&D and trusted brand to develop leading market positions in Europe, Asia and the US

*As of 31.12.2013

• 2014 Q1 solar panel cash cost up 3 USD cents to 67 USD cents/W due to
• Lower production volumes due to module debottlenecking of existing production lines
• Higher volume and price of external silicon blocks (related to furnace upgrade)
• The fire at the cell plant
• The fire in our plant in Tuas, Singapore in March 2014 resulted in a temporary close down of 2(out of 8) cell lines for 6 weeks
• REC maintains target of 8 12% reduction in solar panel cash costs in 2014. Cost reduction more likely to be in the lower part of the range
• Target cost reductions through;
• Increased furnace and module output
• Qualification of new suppliers
• Cell efficiency improvements

Agenda

Introduction to REC

Solar fundamentals and technology introduction

State-of-the-art manufacturing

Factory tour and Q&A

Introduction to solar energy

• The primary energy consumption globally in 2013 was 0.015% of the yearly energy received from the sun
• Sunlight is filtered by the atmosphere
• 1 kW/m² irradiance with clear sky when the sun is at a zenith angle of 48°(AM1.5 conditions).
• Irradiation is often expressed in sun hours.
• Sun hours is the average irradiance expressed as the equivalent time in hours at an irradiance level of 1 kW/m²
• Oslo: 900 sun hours/year
• Germany: 1100-1400 sun hours/year
• Spain: 1700-1900 sun hours/year
• Hawaii: 2100 sun hours/year

The working principle of a silicon solar cell Creation of voltage difference

• Base (+)
• Absorbed light peels off electrons from the silicon atoms.
• The electrons leave holes. The electrons and holes are mobile.
• The electric field at the base-to-emitter border pulls in the electrons.
• This generates voltage difference between negative emitter and positive base.

recombination

• Anti-reflective Glass
• Protects cells from the environment
• Offers mechanical strength
• Anti-reflective coating improves light absorption

EVA

• Bonds back sheet, glass and cells into one laminated structure
• Protects cells from moisture

Cell

• Converts sunlight to electricity
• Back sheet
• Protects rear side of panel from moisture ingress
• Frame
• Offers mechanical strength and protection of the laminate edge
• Provides mounting options
• Junction box
• Connection point between the cells and external cables
• Contains bypass diodes to avoid electrical damage

62% 6% 24% 8% P-type Multicrystalline cells Photovoltaic technology platforms* The most widely used PV technology in the industry REC has a leading position in ptype multi cells and high performance module designs REC will continue to develop its ptype multi platform by implementing commercially viable technologies p-type multicrystalline cells Thin film n-type monocrystalline cells p-type monocrystalline cells

* Forecasted market share in year 2014 for different technology platforms in the PV industry. Source: SolarBuzz,Oct 2013

Agenda

Introduction to REC

Solar fundamentals and technology introduction

State-of-the-art manufacturing

Factory tour and Q&A

Overview of production facility Description

• US 2.0bn invested into the world's largest integrated manufacturing facility in Tuas, Singapore
• Automated Toyota lean manufacturing methodology
• Wafer design capacity of 640MW*; 2 p-type multi crystalline wafer factories
• Cell capacity of 770MW*; 6 fullyautomated cell lines
• Module capacity of 910MW*; 4 highly automated module lines
• Pre-invested in capacity on utilities and infrastructure, allowing for increased production without further infrastructure investment and lead time
• Transport costs avoided through integrated manufacturing and production line proximity resulting in cost saving

REC BUSINESS SYSTEM DRIVES CULTURE OF CONTINUOUS

IMPROVEMENT AND LEAN MANUFACTURING TECHNIQUES

REC Business System (RBS)

RBS principles

• 1. Understand your business case
• 1. Organize your people
• 1. Design and improve your system using our rules in use:
• a. Standardize all activities
• b. Establish a customer-supplier connection
• c. Optimize flow
• d. Improvements & problem solving (continuously improving the system)

Source: REC Solar

Impact (Selected examples)

Example	Impact	Industry
Direct manufacturing employees per MW in module factory	0.51	-
Total recorded injuries (incidents per million working hours)	0.4	-
2013 Customer claims (parts per million)	62	-
2013 cost improvement projects	245	-
Wafer yield	94.0%	92%
Cell yield	98.6%	97-98%
Module yield	99.2%	98%

RBS- ICCM (In-Control, Capable and Maintain) methodology to understand and realize the potential of current technology

• In the ICCM methodology, each of the wafer, cell and module process step are further breakdown into sub-processes
• Process transformation is done on each sub-processes for detail understanding of the purpose of each steps, interaction with upstream and downstream processes and the critical process parameters
• These details understanding are mapped in Focus Diagram for establishing the control plan

18 © 2013 REC All rights reserved.

RBS- ICCM (In-Control, Capable and Maintain) methodology to understand and realize the potential of current technology

8-Steps ICCM was used to ensure new technology is understood and documented in the REC Product Development Framework

• REC has continuous focus on quality and improvement in order to ensure competitive advantages
• Key focus on the Group's goals on cost reduction, profitable growth, technological advances, market and customer focus and organizational development
• REC aim to build a common set of methodologies, practices and know-how that every employees can relate and communicate effectively

Product qualification process above industry standard

• Major design changes undergo an extended qualification process, where panels are tested beyond normal industry standards
• This extreme testing ensures panels can perform in the most severe environments, ensuring increased reliability

Product quality ensured through extensive in-line controls

REC product quality Field studies confirm low degradation of REC panels

• Field degradation study shows REC's degradation to be clearly lower than warranty rate
• The quality of REC's production is also demonstrated by excellent performance under LID conditions compared to comparable modules from other leading manufacturers
• REC's unique anti-PID treatment is further confirmation of the benefits of a high quality manufacturer
• REC's quality design and production mean increased yield over time compared to comparable modules from other leading manufacturers

REC product quality High quality demonstrated by low product claim rates

Claims rates (PPM) ; parts per million

• Dedicated team handles claims from the field
• Analysis of claims helps improve product quality
• Parallel feedback process in place to handle non-claim issues

Source: REC internal data, external data from Warranty Week (http://www.warrantyweek.com)

REC has an extensive field monitoring program

• REC opened its Energy Monitoring & Control Centre at its Singapore production facility in April 2013
• REC invested in the same hardware for a number of key sites across a range of climates
• Over 100 MW of sites monitored in Europe, US and SE Asia
• Data used to assess performance against warranty, facilitate continuous product improvement and enhance REC's reputation for strong energy yield
• Dedicated personnel constantly monitor the systems involved

Solar parks with REC panels perform above expectations

91.0 90.4

Past 3 Months

Germany – 5.7 MW UK – 5 MW 88.0 88.4 86.8 90.6 84.1 85.5 84.6 88.7 75 80 85 90 95 2011 2012 2013 2014 PR (%) Actual PVsyst 91.7 91.9 88.1 75 80 85 90 95 Feb '14 Mar '14 Apr '14 Past 3 Months 80.4 86.2 86.4 86.4 79.2 81.8 84.3 84.4 75 80 85 90 95 2011 2012 2013 2014 PR (%) Actual PVsyst 92.7 75 80 85 90 95 Feb '14 Mar '14 Apr '14

Singapore – 150 kW

US – 1.5 MW

27 © 2013 REC All rights reserved. Note: (1) PVsyst is an industry standard simulation software for predicting solar energy production (2) Non-operational periods are not considered in yearly data

REC cell efficiency and module power steadily improving

Annual Module Production (MW)

• The module debottlenecking project to increase capacity to ~1.0 GW is on track and expected to be completed by Q3 2014
• Decision taken to proceed with investment of ~USD 30m to increase module production to ~1.2 GW in 2015 and a module capacity of ~1.3 GW by end 2015

Investment in new module lines will coincide with introducing technologies to improve product performance further

WATT class distribution in 2015 290 300 MW Capability

• REC will increase module production capacity by ~300 MW in 2H 2015 through installing two additional lines in the module factory
• The investment in additional module production capacity will coincide with introducing new and proven technologies
• REC is expected to improve its premium quality and realize next generation REC module with lower cost, higher power and improved reliability

1,000 MW Capability Agenda

Introduction to REC

Solar fundamentals and technology introduction

State-of-the-art manufacturing

Factory tour and Q&A