Slide 1: Third Quarter 2023 Presentation
THIRD QUARTER 2023 PRESENTATION Kurt Levens, CEO Jack Yun, CFO 1 © REC Silicon ASA. All rights reserved. Confidential
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: Agenda
AGENDA › Third Quarter Highlights › The Business Opportunity › Activity Update › Financials › Operations and Markets › Summary 3 © REC Silicon ASA. All rights reserved. Confidential November 15, 2023
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS › Moses Lake restart was initiated by November 1st - First silicon production in November as planned › Revenues $34.8M › EBITDA ($17.8M) › Markets - Solar PV oversupply persists - Semiconductor stable – potential for 2H 24 recovery › Completed high-purity granular polysilico
Slide 5: The Business Opportunity
THE BUSINESS OPPORTUNITY 5 © REC Silicon ASA. All rights reserved. Confidential
Slide 6: A Silicon Material Company Providing Enabling Materials for the Green Energy Transition
A SILICON MATERIAL COMPANY PROVIDING ENABLING MATERIALS FOR THE GREEN ENERGY TRANSITION 6 © REC Silicon ASA. All rights reserved. Confidential
Slide 7: Exposure to Energy Transition Megatrends
EXPOSURE TO ENERGY TRANSITION MEGATRENDS Silane Gas ~30,000 tonnes capacity combined * Specialty Gases Semi- & PV Grade Polysilicon Semiconductors Solar PV Si-Anode Material 1. Digitalization 2. Renewable Energy 3. Energy Storage * From 2025 and onwards 7 © REC Silicon ASA. All rights reserved. Conf
Slide 8: REC Silicon Features
REC SILICON FEATURES Moses Lake › 25,000 MT silane gas capacity - Prime high-purity granular polysilicon capacity - 16,000 MT - ~ 2,400 MT silane for merchant sales › Risk mitigating offtake contract › Largest supplier of silane outside China › Low energy – low cost and conflict-free › Low-cost, low
Slide 9: Silane-Based Industries Facing Disruptive Changes
SILANE-BASED INDUSTRIES FACING DISRUPTIVE CHANGES › China dominance › Investments moving from Asia to › Strong political and regulatory › High-emission energy the US push › Political risks › Support from US legislative › Low-emission energy › ESG issues initiatives* › Supply chain geographical diver
Slide 10: REC Silicon Road to Sustainable Profitability
REC SILICON ROAD TO SUSTAINABLE PROFITABILITY Current Exposure Exposure 2025 -> › ~ 7,400 MT silane gas production › ~ 30,000 MT silane gas production › 2/3 of revenues in Asia › 2/3 of revenues in the US From exposure to To high exposure to volatile China US value chains with Additional growth mark
Slide 11: Activity Update
ACTIVITY UPDATE 11 © REC Silicon ASA. All rights reserved. Confidential
Slide 12: Moses Lake Restart
MOSES LAKE RESTART › Startup activities commenced at the end of October › Systems are methodically and sequentially being brought online and stabilized › First silicon production planned in November › First shipments still planned in Q1 2024 › This startup and ramp phase will continue for the next 1
Slide 13: Butte Expansion and Operations
BUTTE EXPANSION AND OPERATIONS › DCS expansion qualification scheduling ongoing - First commercial deliveries will occur in 2024 - Existing loading capacity de-bottlenecked by 30% › 90% of new containers investment will be in place by mid year 2024 - Semi recovery indications in 2nd half 2024 for so
Slide 14: Financials
FINANCIALS 14 © REC Silicon ASA. All rights reserved. Confidential
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS (Millions USD) Q3-23 Q3-22 2022 Q2-23 Revenues $34.8M Semiconductor Materials $ 34.7 $ 36.6 $ 147.4 $ 36.6 - Polysilicon Sales volume increased by 10.5% vs. Q2-23 Solar Materials 0.1 0.1 0.2 0.1 - Silicon Gas Sales volume decrease by 11.1% vs. Q2-23 Other 0.1 0.1 0.2 0.1 Revenue
Slide 16: Semiconductor Materials Segment Financial Performance
SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE (USD Millions) $36.6M $36.6M $34.7M $31.5M Revenues $34.7M $29.0M - 5.3% decrease in revenues vs. Q2-23 - Polysilicon Sales Volume – 10.5% increase vs. Q2-23 - Semiconductor Grade Polysilicon - decrease by 2.2% - Polysilicon Sales Price – 3.6% de
Slide 17: Cash Flows
CASH FLOWS Cash Flows September 30, 2023 Cash Balance $121.7M (USD Million) $106.6M Increase in Cash During Q3’23 $160 $140.0 $1.6 $140 Cash Flows From Operating Activities $8.7M ($17.8) ($0.3) $30.0 $0.0 - ($17.8M) EBITDA ($4.7) $120 ($1.5) $121.7 - ($0.3M) Working Capital $100 - ($3.2M) Increase i
Slide 18: Debt
DEBT Debt Maturity Profile (USD Million) $260.3 Term Loans Nominal Debt $352.7M Lease Liabilities - $139.7M Increase during Q3-23 Property Tax Settlement - $140 Change in Debt - ($0.3M) Changes in Lease Liabilities Nominal Net Debt $231.0M $121.7 $250.0 - $33.0M Increase during Q3-23 - $106.6M Incre
Slide 19: Operations and Markets
OPERATIONS AND MARKETS 19 © REC Silicon ASA. All rights reserved. Confidential
Slide 20: Silicon Gases
SILICON GASES Silicon Gas Sales Silicon Gas - Sales Volume of 754 MT (decrease 11.1% vs. Q2 2023) Sales Volumes (MT) - Price decrease 0.6% vs. Q2 2023 Semiconductor demand low but stable - Indications from Semi manufacturers support a possible 2nd half recovery in some segments - Largest impact is o
Slide 21: Semiconductor Grade Polysilicon
SEMICONDUCTOR GRADE POLYSILICON Semiconductor Grade Polysilicon Sales Volumes (MT) Semiconductor Segment Polysilicon Sales - Semiconductor Grade Polysilicon Sales of 140 MT - Total Polysilicon Sales of 199 MT increase of 10.5% vs. Q2 2023 - Total Average Price (including byproduct) decrease of 3.6%
Slide 22: PV Polysilicon
PV POLYSILICON Mono Grade Average Polysilicon Price Global solar installation growth continues USD/KG - Total year forecast climbs to over 350GW 40 35 Prices stabilized in Q3 30 - China prices still under pressure from overcapacity - Concerns around global module inventory will keep prices 25 suppre
Slide 23: Summary
SUMMARY › Moses Lake restart has commenced with first deliveries targeted for Q1 2024 – Offtake agreement in place › Butte operation has stabilized EG polysilicon inputs and mix through mid 2024 › Semiconductor market recovery possible in second half 2024 › Secured long-term financing of Moses Lake
Slide 24: Thank You
Thank You Q4 2023 Reporting February 2024 www.recsilicon.com