Rec Silicon Asa · OSL:RECSI
Rec Silicon Asa — Q4 2024 Earnings Presentation
23 slides from Rec Silicon Asa's earnings presentation, Feb 6, 2025
Slide 1: Fourth Quarter 2024 Presentation
Fourth Quarter 2024 Presentation Kurt Levens, CEO Jack Yun, CFO
Slide 2: Disclaimer
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 abo
Slide 3: A Silicon Materials Company
A SILICON MATERIALS COMPANY PROVIDING ENABLING MATERIALS FOR THE DIGITAL REVOLUTION AND ENERGY INDUSTRY 3 © REC Silicon ASA Fourth Quarter 2024. All rights reserved. Confidential.
Slide 4: Agenda
Agenda › Highlights and Updates › Financial Review › New Strategic Direction › Summary 4 © REC Silicon ASA Fourth Quarter 2024. All rights reserved. Confidential.
Slide 5: Highlights and Updates
HIGHLIGHTS AND UPDATES 5 © REC Silicon ASA Fourth Quarter 2024. All rights reserved. Confidential.
Slide 6: Highlights and Updates
Highlights and Updates › Revenues from continuing operations of $29.7M › EBITDA loss from continuing operations of $5.3M › December 31, 2024, cash balance of $10.3M › Production of polysilicon discontinued in Moses Lake › Secured additional financing to support shutdown process and transition period
Slide 7: 2024 FBR Process Timeline and Announcements
2024 FBR Process Timeline and Announcements 2024, 25 March 2024, 20 June 2024, 13 September 2024, 15 November 2024, 17 December • Delay of first shipment • Continued delay of first shipment • Test material shipped • Shipment cleared by • Unsatisfactory qualification • Post treatment issues • Post re
Slide 8: Butte Silicon Gases
Butte Silicon Gases › Silicon gas sales Silicon Gas - 543 MT shipped in Q4’24 vs 515 MT in Q3’24 Sales Volumes (MT) › Overall demand similar to previous quarter - Standard memory device production utilization soft - Trade issues and concerns affected orders and inventory - Demand for DCS and MCS gre
Slide 9: Butte Polysilicon
Butte Polysilicon › Semiconductor grade polysilicon Semiconductor Grade Polysilicon - 216 MT shipped in Q4’24 vs. 108 MT in Q3’24 Sales Volumes (MT) › Finishing the processing of material from inventory - Soft market impacted clearance of inventory by end of 2024 - Target to clear finished goods inv
Slide 10: Financial Review
FINANCIAL REVIEW 10 © REC Silicon ASA Fourth Quarter 2024. All rights reserved. Confidential.
Slide 11: Group Earnings
Group Earnings › Revenues of $29.7M in Q4’24 (Millions USD) Q4 2024 Q4 2023 2024 2023 - Selling down Siemens polysilicon inventory as Butte $ 29.6 $ 40.3 $ 140.7 $ 140.6 planned Moses Lake (Discontinued) - - - - - Silicon gas sales volume increased by 5.4% vs. Other 0.0 0.0 0.1 0.2 Q3’24 Revenues $
Slide 12: Butte Operations
Butte Operations (USD Millions) $42.0M $40.3M › Revenues of $29.6M, down 9.5% sequentially $36.4M - Polysilicon sales volume lower than planned $32.8M - Silicon gas sales volume up 5.4% sequentially $29.6M - Silicon gas sales price down 3.7% sequentially › EBITDA contribution of $2.6M - $2.2M increa
Slide 13: Financial Position
Financial Position › 31 December 2024 cash balance $10.3M - $13.3M decrease during Q4’24 Debt Maturity Profile › Nominal debt $418.0M (USD Million) - $21.7M increase during Q4’24 $261.6 • $25.0M increase in term loans 250 Property Tax › Nominal net debt $407.8.8M Settlement - $35.0M increase during
Slide 14: New Strategic Direction
NEW STRATEGIC DIRECTION 14 © REC Silicon ASA Fourth Quarter 2024. All rights reserved. Confidential.
Slide 15: Strategic Priorities
Strategic Priorities Stabilizing the business while capturing growth opportunities 01 02 03 04 05 Executing strategic Returning to Optimizing Maintaining market Optimizing capital transition to a pure- profitability by operations by share in key areas structure and play silicon gas aggressively cutt
Slide 16: Strategic Transition to a Pure-Play Silicon Gas Producer
Strategic Transition to a Pure-Play Silicon Gas Producer Targeting better margins and less price volatility Priority to maximize Butte capacity Higher price Plus ~ 24,000 Moses Lake capacity points for specialty gases Potential for expansion Capacity ~ 7,400 mtpa Typical price Typical price range fo
Slide 17: Silane Gas is Used for a Variety of Purposes
Silane Gas is Used for a Variety of Purposes Semiconductors Solar PV DCS, MCS and Monosilane Monosilane In chemical vapor Di-Silane Di-Silane in CVD processes, In CVD and antireflective layers deposition (CVD) for precursor process and thin film most devices for advanced nodes deposition Silicon DCS
Slide 18: Strong Growth in Core Markets
Strong Growth in Core Markets US semiconductor capacity growth 2022-32 (WSPM) Silicon gas potential* in a market forecast scenario World avg 1.1x Europe 1.2x US/EUR Specialty S E R Semi semiconductor gases Source: Semiconductor Industry Association, BCG ~2x industry Higher margins Dominant market po
Slide 19: Silicon Anode Market
Silicon Anode Market › 10x growth in anode capacity for EV batteries to 2040 › Traditional Si › Silicon anode material to capture significant market − Metallurgical share − Fine Silicon Particulate › Next Gen Si − Silane and solid-state silicon Anode capacity requirements (GWh) Silicon AAM technolog
Slide 20: Summary
SUMMARY 20 © REC Silicon ASA Fourth Quarter 2024. All rights reserved. Confidential.
Slide 21: Summary
Summary › 2025 priorities are to stabilize the business while capturing growth opportunities - Executing strategic transition to a pure-play silicon gas producer positioning the company for future growth. - Returning to profitability by aggressively cutting costs and focusing on higher value offerin
Slide 22: Thank you.
Thank you. REC Silicon ASA Q1 2025 May 8, 2025 22 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 23: REC Silicon ASA contact and company description
REC Silicon ASA About REC Silicon Lysaker Torg 5, 3 etg. REC Silicon is a global leader in silane based high purity silicon materials. We combine 40 years experience and best-in-class PO Box 63 1324 Lysaker proprietary technology to deliver on customer expectations. Our two U.S. based plants have a