Rec Silicon Asa · OSL:RECSI
Rec Silicon Asa — Q1 2025 Earnings Presentation
21 slides from Rec Silicon Asa's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Presentation
First Quarter 2025 Presentation Kurt Levens, CEO Jack Yun, CFO 1 © REC Silicon ASA First Quarter 2025. 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: A Silicon Materials Company Providing Enabling Materials for the Digital Revolution and Energy Industry
A SILICON MATERIALS COMPANY PROVIDING ENABLING MATERIALS FOR THE DIGITAL REVOLUTION AND ENERGY INDUSTRY 3 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 4: Agenda
Agenda › Highlights and Updates › Financial Review › Strategic Direction › Trade Policy Update › Summary 4 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 5: Highlights and Updates
HIGHLIGHTS AND UPDATES 5 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 6: Highlights and Updates
Highlights and Updates › Major restructuring activities accomplished and ongoing › EBITDA loss from continuing operations of $4.6M › Hanwha launched voluntary share purchase offer › Working on further financing options for restructuring › Trade actions, channel inventory and market softness continue
Slide 7: Butte Silicon Gases
Butte Silicon Gases › Silicon gas sales Silicon Gas - 560 MT shipped in Q1’25 vs 543 MT in Q4’24 Sales Volumes (MT) › Silane shipments still range bound in Q1 - SE Asia and China shipments remained limited - Some regions still have excess inventory - The main shipment regions in Q1 for all silicon g
Slide 8: Financial Review
FINANCIAL REVIEW 8 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 9: Group Earnings
Group Earnings (Millions USD) Q1 2025 Q1 2024 YEAR 2024 Q4 2024 › Revenues $21.4M - Silicon gas sales volume increased by 3.2% vs. Q4’24 Butte $ 21.4 $ 42.0 $ 140.7 $ 29.6 › EBITDA ($4.6M) Moses Lake › Butte segment Other 0.0 0.0 0.1 0.0 - EBITDA of $1.2M Revenues $ 21.4 $ 42.0 $ 140.8 $ 29.7 › Mose
Slide 10: Butte Operations
Butte Operations › Revenues $21.4M $42.0M (USD Millions) - 27.9% decrease in revenues vs. Q4’24 $36.4M - Silicon gas sales volume – 3.2% increase vs. Q4’24 $32.8M $29.6M - Silicon gas sales price – 8.4% decrease vs. Q4’24 › EBITDA contribution $1.2M $21.4M - $1.4M decrease to EBITDA contributed vs.
Slide 11: Cash Flows
Cash Flows › March 31, 2025 cash balance $16.8M Cash Flows - $6.5M increase in cash during Q1’25 (USD Million) › Cash flows from operating activities ($24.7M) $60 - ($4.6M) EBITDA $40.0 - ($2.8M) working capital $50 • $1.3M decrease in inventories ($4.6) ($2.8) • $9.5M change in receivables/prepayme
Slide 12: Financial Position
Financial Position › Nominal debt $456.9M Debt Maturity Profile - $38.9M increase during Q1’25 (USD Million) • $40.0M increase in term loans 400 • ($1.1M) changes in lease liabilities $351.7 350 › Nominal net debt $440.1M - $32.3M increase during Q1’25 300 Property Tax Settlement Lease Liabilities •
Slide 13: Strategic Direction
STRATEGIC DIRECTION 13 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 14: Update on 2025 Initiatives
Update on 2025 Initiatives › Most reshoring projects are experiencing delays - Trade action, policy uncertainty and market concerns - New SEMI Fab startups pushed out - New construction and startup of PV Cell Fabs delayed - Startup and ramp-up of Silicon Anode material makers delayed › Activity and
Slide 15: Voluntary Cash Offer to Acquire All Shares of REC Silicon
Voluntary Cash Offer to Acquire All Shares of REC Silicon The Offer Rationale › Anchor AS (offeror) is a newly formed Norwegian limited liability › In order to safeguard the future of the Company and retain company established by the two largest shareholders, Hanwha remaining Shareholder values, the
Slide 16: Trade Policy Update
TRADE POLICY UPDATE 16 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 17: Tariff and Trade Impacts
Tariff and Trade Impacts › Primary countries purchasing silicon gases - United States – Incremental growth but need big projects online - Europe – Currently stable - Taiwan – Thus far minimal impact - South Korea – Thus far minimal impact - Southeast Asia – Was already impacted due to AD/CVD cases;
Slide 18: Summary
SUMMARY 18 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 19: Summary
Summary › Significant progress made towards cost reduction and restructuring efforts - Moses Lake now in safe and recoverable mode - Work continues towards reducing legacy cost › Q2 silicon gases shipment target 580 MT - Includes estimated adjustment for tariff effects › Direction and opportunity re
Slide 20: Thank you.
Thank you. REC Silicon ASA Q2 2025 August 7, 2025 20 © REC Silicon ASA First Quarter 2025. All rights reserved. Confidential.
Slide 21: REC Silicon ASA
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