Solar — Investor Presentation 2014

Apr 25, 2014

FIRST QUARTER 2014

25 April 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 gener business. expectations, generally identifiable by statements containing words such as statements words "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 first quarter 2014 result pr first quarter presentation esentation on April 25, 2014. Information contained within will 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 Act.

Q gg 1 2014 Highlights

Market and Operations Update

Financials

• Financial performance
• Revenues of USD 175.4m
• Module EBITDA of USD 15.9m
  • –Total EBITDA of USD 16.2m
• Sales price for solar panels for Q1 2014 were in line with Q4 ^{2013 122}
• Solar panel cash cost up USD 3 cents/W from Q4 2013
• The increase is due to the phase in of new EBITDA (USD m) equipment, furnace upgrade and the fire at the cell plant in March 2014
• Target cost reduction for full year 2014 remains unchanged. However, more likely to of
• 216 MW of module production
• Capacity expansion approved, module capacit y to increase to 1.3 GW b y 2H 2015 p y

Revenues (USD m)

(1) Figures for Q4 2013 re-presented, assuming that the acquisition of the solar entities previously owned by REC Silicon ASA occurred on 1 October 2013 and represent 3 months of operations until 31 December 2013. The re-presented figures exclude the amortization of customer relationships and the one-off negative goodwill from the business combination recorded in Q4 2013. The re-presented figures for Q4 2013 are not prepared in compliance with IAS 34 Interim Financial Reporting ("IAS 34") and are unaudited. Financial figures from Q3 2013 and earlier are shown as reported historically, no adjustments have been made

4© 2013 REC All rights reserved.

Q gg 1 2014 Highlights

Market and Operations Update

Financials

Annual Module Installations (GW)

Source: BNEF, IHS Integrated Market Tracker Q1 2014

Solar Panel Spot Prices (USD/W)

• Annual global module installations are – 49 GW in 2014

• Capacity utilization is expected to increase from 65% in 2013 to ~ 80% in 2016

• Global solar panel spot prices fell by 4.9 % in Q1 2014

• REC's high quality solar panels continue to enjoy a price premium

Europe and Japan expected to remain key markets for REC Solar in 2014

Geographical sales split (MW)

Source: IHS Integrated Market Tracker Q1 2014, REC

7© 2013 REC All rights reserved.

Europe continues as REC's "home market" with an established client base

* Includes figures for "off grid"

Source: IHS Integrated Market Tracker Q1 2014, REC

• European PV demand is expected to recover after drop due to several polic y chan ges p py g
• Growth in the roof top market and in unsubsidized demand
• REC is represented in all main markets through it t t k ^{12 8} its partner networ

• Germany and the UK combined represented 67% (year 2013) and 89% (Q1 2014) of REC's sales in Europe

  • Industry consensus is that the Minimum Import Price ("MIP") has been reduced from 0.56 €/W to 0.53 €/W in April 2014

• The revised MIP is more aligned with 4,1 3,6 current solar industry price levels for large EU projects

• REC is expected to continue to enjoy a pricing premium vs. the industry ²⁰¹⁶

Demand development in Japan (GW)

• Demand in Japan is expected to t bili t 8 9 GWstabilize at
• REC is valued as a premium supplier in the quality conscious Japanese market
• REC is strengthening its market presence in Japan by developing the organisation and expanding services
• The product portfolio will be expanded portfolio expandedto cater to the local market requirements

* Includes figures for "off grid"

Source: IHS Integrated Market Tracker Q1 2014, REC

Annual Module Production (MW)

• The module debottlenecking project to increase capacity to ~1 0 GW is 1.0 on track and expected to be completed by Q3 2014
• Decision taken to proceed with investment in two new module lines 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 2015290300 MWCapability 1,000 MW and improved reliability C bilit250Capability

New Lines

• 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 i t d t i it i is expecte to improve its premium quality and realize next generation REC module with lower cost, higher power

Current Lines

• 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. There was no impact on REC module shipments
• 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 Increased furnace
• Qualification of new suppliers
• Cell efficiency improvements

Q gg 1 2014 Highlights

Market and Operations Update

Financials

f ig Ke y ur es	2 Q 1 2	3 Q 1 2	4 Q 1 2	1 Q 1 3	2 Q 1 3	3 Q 1 3	4 Q 1 3	1 Q 1 4
( ) I A U S E B T D Dm	1	‐2 9	‐1 8	‐7	1 5	1 1	2 1	1 6
( ) E B I T D A in % m ar g	0. 5 %	‐2 3. 6 %	‐1 3. 0 %	‐5 7 %	9. 4 %	7. 2 %	1 1. 7 %	9. 4 %
d. du ( ) M io M W t o p ro c n	1 7 9	2 2 0	1 9 1	1 7 0	1 9 9	2 2 3	2 2 8	2 1 6
/ ( ) Co U S Dc ts t t t s w a en	0. 9 3	0. 8 2	0. 7 1	0. 6 9	0. 6 8	0. 6 5	0. 6 4	0. 6 4 *

* Excluding exceptional cash cost items of USD 3 cents/w

( S O ) U D I N M I L L I N	Q 1 2 0 1 4	Q 4 2 0 1 3 *	R d i i t  e c o n n r e e n e s m u v u
R e e n e s v u	1 4 7 5	1 8 2 4	d d i 5 % t e o e c r e a s e n s u
M d l B i o u e u s n e s s r e v e n u e	1 6 9 8	1 8 1. 0	l o m e v u
S B i t y s e m u s n e s s r e v e n u e	6 5	1. 4
			
C f i l t t o s o m a e r a s	1 0 0 5 -	1 0 6 0 -	Q 4 2 0 1 3 i l d d h i h
O i t p e r a n g e x p e n s e s	5 4 3 -	5 8 3 -	n c u e g e r n
E B I T D A	1 6 2	1 8 2	i t t t s y s e m s r e s r u c u r n g a
M d l B i E B I T D A o u e u s n e s s	1 5 9	2 1. 1	l i i i t t t t s n g r a n s a c o n c o s s
S B i E B I T D A t y s e m u s n e s s	0 3	2 9 -
			N f i i l i i l d t t  e n a n c a e m s n c u
D / / i i t. t e p r a m o r m p a r m e n	5 5 -	4 5 -	i f c r r e n c g a n s r o m m o n u y
E B I T	1 0 7	1 3 7	d i d
S h f f i / l f i t t a r e o p r o o s s o e q u y a c c.	0 2 -	0 2 -	t t e n o m n a e a s s e s
f N i i l i t t e n a n c a e m s	0 7	2 6 -
f / f P i l b t t r o o s s e o r e a x	1 1. 2	1 0 9
I / b f i t t n c o m e a x e x p e n s e e n e	0 2 -	0 1 -
f / P i l t r o o s s	1 1. 0	1 0 8

• Reduction in revenues mainly due to 5 % decrease in sales volume
• Operating expenses reduced as systems restructuring and listing transaction costs
• Net financial items include currency gains from monetary denominated assets

*The re‐presented figures have been adjusted to exclude certain accounting impacts that arise in connection with the recent split from REC Silicon andhave therefore not been prepared in compliance with IAS 34 Interim Financial Reporting ("IAS 34") and are unaudited.

		C 3 1 D E E M B E R
( U S D I N M I L L I O N )		2 0 1 3
S S S A E T
F ixe d As t s e s	7 7. 8	7 8. 1
In i b le As t t a ng s e s	1 8. 7	1 9. 7
O he No C As t t t r n- u rre n s e	3 1. 0	3 1. 4
C h a s	8 6. 5	6 7. 2
O he C As t t t r rre n s e u	2 2 0. 0	2 5 3. 3
S S S T O T A L A E T	4 3 3. 9	4 4 9. 7

EQUITY AND LIABILITIES

S h h l d ' i t a r e o e r s e q q u y
Pa i d- in i l t c a p a	1 3 1. 4	1 3 1. 4
O he i d in d in t ty t r e q u a n re a e e a rn g s	1 0 8. 6	3. 0
f fo Pr i d lo he io d t t o a n s s r p e r	1 1. 0	1 0 6. 2
	2 5 1. 0	2 4 0. 6
L i b i l i i t a e s
P is i i io N No C t ro v ns n- u rre n	9 5 7.	9 0. 5
O Tr d Pa b le d he L ia b i l i ie t t a e a s a n r s y	8 3. 5	1 0 9. 9
O he C L ia b i l i ie t t t r u rre n s	3. 7	4. 2
	1 8 2. 9	2 0 9. 1
T O T A L E Q U I T Y A N D L I A B I L I T I E S	4 3 3. 9	4 4 9. 7

• Net cash position of USD 87m 31 MARCH 2014
• Equity ratio of 58%, no interest bearing debt
• Net working capital of USD 131m
  • Operating working capital of USD 82m
  • – Non operating working capital of USD 49m

• Capex and growth opportunities financed through operating cash flows

• Current status:

• – Portfolio consists of 4 projects in US, UK, Italy and Romania and one fund participation in Italy
• –UK project sold in Q1 2014
• –Remaining projects in Italy and Romania expected to be sold later this year
• Proceeds from already sold projects expected to return around ~USD 14m from Q2 2014 USD until Q4 in 2014 and ~USD 5m in 2015

P j i t r o e c o e r e v v w	S i e z	S t t a s u
S U j t p r o e c	8 0 M W p	S Q f l d i 1 2 0 1 3 R i d 3 0 % d o n e c e v e o p r o c e e s
U K j t p r o e c	1 8 M W p	S Q l d i 1 2 0 1 4 R i d % f d 7 5 o n e c e e o p r o c e e s v
I l j 1 t t a y p r o e c	M W 4 5 p	S l i a e s p r o c e s s o n g o n g
R i j t o m a n a p r o e c	8 3 M W p	S l i d l d d t a e s p r o c e s s o n g o n g e a y e u e o , l i t r e g u a o r y s s u e s
I l j 2 t t a y p r o e c	2 0 % i 1 1 3 3 6 6 M M W W F d n p p u n s	I i i l d i i t n a s c u s s o n s

Share price development REC Solar

* Peer group include Canadian Solar, Hanwha, JA Solar, Jinko Solar, Renesola, Trina Solar,Yingli Solar, First Solar, Sunpower Source: Ecowin, Swedbank, REC Solar

Market outlook

• Market demand for REC panels is expected to remain strong in our key markets in Europe and Japan
• Annual global module demand is expected to increase from 39 GW in 2013 to between 46 and 49 GW in 2014
• Solar module prices expected to be relatively stable in Q2 2014, but to be there are uncertainties related to political decisions amongst others the minimum price in Europe

manufacturing outlook

• REC targets 8-12% reduction in solar panel cash costs through 2014. However, more likely to be in the lower end of range with Capex and ^{i d} ti ⁱ Q3 ^d Q4 ²⁰¹⁴ main reduction in Q3 and
• Module production of ~225 MW in Q2 2014 and ~940 MW in 2014
• USD ~ 70m capex program in 2014 to increase module capacity to ~1.0 GW by Q3 2014, ~1.3 GW by 2H 2015 and wafer capacity to ~ 840 MW by 1H 2015

Q gg 1 2014 Highlights

Market and Operations Update

Financials