Rec Silicon Asa · OSL:RECSI
Rec Silicon Asa — Q3 2024 Earnings Presentation
29 slides from Rec Silicon Asa's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Presentation
Third 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 providing enabling materials for the green energy transition
A SILICON MATERIALS COMPANY PROVIDING ENABLING MATERIALS FOR THE GREEN ENERGY TRANSITION 3 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 4: Agenda
Agenda › Highlights and Updates › Moses Lake Facility Update › Butte Operations › Silane for Silicon Anode Material › Financials › Market Outlook › Summary 4 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 5: Highlights and Updates
Highlights and Updates › Revenues of $33.8M › EBITDA -$42.7M primarily due to startup costs at Moses Lake › End of quarter cash balance of $23.6M › Delay of qualification of Moses Lake polysilicon › Moses Lake operation rate reduced › Silane shipments affected by PV slowdown and trade concerns 5 © R
Slide 6: Moses Lake Facility Update
MOSES LAKE FACILITY UPDATE 6 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 7: Timeline of the FBR Polysilicon Restart
Timeline of the FBR Polysilicon Restart 2023, Nov 30 2024, May 2 2024, Sep 13 2024, Oct 21 • FBR restart operations have officially • Improvement of Key Qualities • Discussion on Specification • Customs procedures delay commenced • Expected Delivery in Q2 2024 Modification (conditional upon full rel
Slide 8: Current Operations Status
Current Operations Status Silane Gas FBR Reactors Product Handling Packaging Silane Ⅲ (1) (Cap. 12,000MT) (2) 15% Product Handling (3) Product Handling Product Handling Product Handling Packaging(4) Packaging Silane Ⅳ (Cap. 12,000MT) 1) Operating silane unit as needed for gas supply to FBR 2) Reduce
Slide 9: Moses Lake Facility Summary
Moses Lake Facility Summary › Operations - Operating rate adjusted to 15% - Turn down will affect ramp timing - Facility will not be at 100% by year end › Qualification and Quality - Unknown timing and results at present - Focusing on quality improvement modifications › Considerations/Actions - Work
Slide 10: Butte Operations
BUTTE OPERATIONS 10 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 11: Silicon Gases
Silicon Gases › Silicon gas sales Silicon Gas - 515 MT shipped in Q3 2024 Sales Volumes (MT) › PV and FPD demand affecting volume - Lower utilization rates and suspended facilities - Trade issues and concerns affecting SE Asia - Lower utilization and closure of specific FPD facilities › Semiconducto
Slide 12: Semiconductor Grade Polysilicon
Semiconductor Grade Polysilicon › Semiconductor grade polysilicon Semiconductor Grade Polysilicon - 108 MT shipped in Q3 2024 vs. 108 MT in Q2 2024 Sales Volumes (MT) › Finishing the processing of material from inventory - Target is still to clear finished goods inventory by end of the year - Restru
Slide 13: High-Grading Butte Portfolio for Growth
High-Grading Butte Portfolio for Growth Silane-based products Key silane markets Reallocating and expanding capacity Semiconductors/Electronics 2024 efforts Available Available Available DCS, MCS and Capacity Loss-making, Monosilane Disilane ~7,400t shut-down in ‘ In chemical vapor deposition (CVD)
Slide 14: Silane for Silicon Anode Material
SILANE FOR SILICON ANODE MATERIAL 14 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 15: Silicon Anode
Silicon Anode › Signed multi-year contract with Sila Nanotechnologies to start in 2025 › REC supplies at least six companies › Discussions continue with companies about potential supply modes and cooperation 15 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 16: Silane Gas Set to Boost EV Battery Performance
Silane Gas Set to Boost EV Battery Performance 1 Silicon is the key to better battery performance REC Silicon has Silane for the Si Anode material demand… Battery density (watt-hour/kg) Graphite Graphene-Silicon Gra-Si anode with upgraded anode composite anode cathode active materials All other capa
Slide 17: Financials
FINANCIALS 17 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 18: Group Earnings
Group Earnings (Millions USD) Q3 2024 Q3 2023 2023 Q2 2024 › Revenues $33.8M - Siemens polysilicon sales volume decreasing as Semiconductor Materials $ 32.8 $ 36.6 $ 140.6 $ 36.4 planned Solar Materials 1.0 0.1 0.4 1.3 - Silicon gas sales volume decreased by 21.3% vs. Other 0.0 0.1 0.2 0.0 Q2-24 Rev
Slide 19: Semiconductor Materials Segment
Semiconductor Materials Segment (USD Millions) › Revenues $32.8M $40.3M $42.0M - 9.9% decrease in revenues vs. Q2-24 $36.4M - Polysilicon sales volume decreasing as planned $34.7M $32.8M - Silicon gas sales volume – 21.3% decrease vs. Q2-24 - Silicon gas sales price – 6.9% increase vs. Q2-24 › EBITD
Slide 20: Cash Flows
Cash Flows Cash Flows › September 30, 2024 cash balance $23.6M $100 (USD Million) - $ . decrease in cash during Q ’ $90 › Cash flows from operating activities ($43.0M) $45.0 - ($42.7M) EBITDA $80 - $5.3M working capital $70 • $3.1M decrease in inventories $60 • $1.9M decrease in receivables $50 • $0
Slide 21: Financial Position
Financial Position › Nominal net debt $396.4M Debt Maturity Profile - $44.8M increase during Q3-24 (USD Million) • $45.0M increase in term loans $261.6 • ($0.2M) changes in lease liabilities 250 › Nominal debt $372.8M - $58.9M increase during Q3-24 200 Property Tax Settlement • ($14.1M) decrease in
Slide 22: Market Outlook
MARKET OUTLOOK 22 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 23: Semiconductor Market – Long Term still intact
Semiconductor Market – Long Term still intact Growth returning to the semiconductor industry US investments targeting improved resilience › Generative AI is the big driver › Enormous investments in US semiconductor value chain › 17.5% growth in billings YTD as of August, above forecast for 2024 › Ta
Slide 24: PV Market
PV Market November 2024 Estimates › Solar installation demand softening - China exports declined Monthly Monthly - All regions experienced lower utilization Sector Company Region Annual Capacity Production UR Capacity Output - Trade issues causing uncertainty (SE Asia) Total Mono Cell Outside China
Slide 25: Government Activity Update – Supportive Environment Continues
Government Activity Update – Supportive Environment Continues inalized definition on “battery-grade” materials IRA 45x Clarified that for 45X domestic wafer credit, ingots need to be produced in the U.S. AD/CVD U.S. Commerce issues preliminary determinations for CVD case on SE Asia solar cells CHiPS
Slide 26: Summary
SUMMARY 26 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 27: Summary
Summary › Moses Lake Facility focus - Product quality improvement - Minimal operation rate › Qualification timing is uncertain › PV production utilization remains very low affecting sales › Butte restructuring progressing › Silane for silicon anode - contract signed 27 © REC Silicon ASA Third Quarte
Slide 28: Thank you.
Thank you. REC Silicon ASA Q4 2024 February 2025 28 © REC Silicon ASA Third Quarter 2024. All rights reserved. Confidential.
Slide 29: REC Silicon ASA contact and about
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