Rec Silicon Asa · OSL:RECSI
Rec Silicon Asa — Q3 2022 Earnings Presentation
19 slides from Rec Silicon Asa's earnings presentation, Nov 16, 2022
Slide 1: Third Quarter 2022 Presentation
THIRD QUARTER 2022 PRESENTATION 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 › Financial Review › Semiconductor Materials › Solar Materials › Key Initiatives 3 © REC Silicon ASA. All rights reserved. Confidential November 16, 2022
Slide 4: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Revenues: $ 36.7M EBITDA: ($ 13.8M) September 30, 2022 Cash Balance of $ 146.8M - Cash Decrease During Q3 2022 of ($ 26.2M) - ($12.0M) Cash Outflows From Operating Activities - ($13.5M) Cash Outflows From Investing Activities - ($0.7M) Cash Outflows From Financing Activities
Slide 5: Third Quarter Financial Review
THIRD QUARTER FINANCIAL REVIEW 2022
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS (Millions USD) Q3-22 Q3-21 2022 2021 Q2-22 Revenues $36.7M - Polysilicon Sales Volume Decrease by 17.4% vs. Q2-22 Semiconductor Materials $ 36.6 $ 36.2 $ 116.0 $ 142.8 $ 44.9 - Silicon Gas Sales Volume Decrease by 31.2% vs. Q2-22 Solar Materials 0.1 0.0 $ 0.1 0.1 0.0 Other 0.1 0
Slide 7: Semiconductor Materials Segment Financial Performance
SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE Revenues EBITDA Revenues $36.6M (USD Millions) $44.9M - 19% Decrease in Revenues vs. Q2-22 $43.2M $36.6M - Polysilicon Sales Volume – 17.4% Decrease vs. Q2-22 $36.2M $34.5M - Semiconductor Grade Polysilicon - Decrease by 10.2% - Polysilicon Sales
Slide 8: Cash Flows
CASH FLOWS September 30, 2022 Cash Balance $146.8M Cash Flows ($26.2M) Decrease in Cash During Q3’22 (USD Million) Cash Flows From Operating Activities ($7.4M) - ($13.8M) EBITDA $9.7 ($0.4) $0.3 - $9.7M Working Capital ($2.1) ($4.6) ($13.8) - $2.7M Decrease in Inventories - $5.2M Decrease in Receiva
Slide 9: Debt
DEBT Debt Maturity Profile (USD Million) $146.8 USD Senior Secured Bond Lease Liabilities Note - Property Tax Settlement $113.9 Nominal Debt $185.6M - ($0.3M) Decrease During Q2-22 - ($0.3M) Changes in Lease Liabilities Nominal Net Debt $38.8M Sep.2022 - $25.9M Increase During Q3-22 $110.0 - $26.2M
Slide 10: Third Quarter Semiconductor Materials
THIRD QUARTER SEMICONDUCTOR MATERIALS 2022
Slide 11: Silicon Gases
SILICON GASES Silicon Gas Sales - 586MT Shipped in Q3-22 Silicon Gas - 31% Volume Decrease vs. Q2-22 Sales Volumes (MT) - Supply Chain Constraints Improving But Still Affecting Shipments and Timing - Flat Panel Display Production Utilization Forced Demand Deferrals - Silane Price 0.6% Increase vs. Q
Slide 12: Semiconductor Grade Polysilicon
SEMICONDUCTOR GRADE POLYSILICON Semiconductor Grade Polysilicon Sales Volumes (MT) Semiconductor Grade Polysilicon Sales - 299MT Shipped in Q3-22 - Decrease of 17% Compared to Q2-22 - Lower Production Rate in Q3 Due to Large Planned Maintenance Outage - Semiconductor Price Remained Flat vs. Q2-22 De
Slide 13: Third Quarter Solar Materials
THIRD QUARTER SOLAR MATERIALS 2022
Slide 14: Moses Lake Restart Update
MOSES LAKE RESTART UPDATE Restart Activities Continue - Target: - 1st Production in Q4-2023 - 50% Capacity Utilization During Q2-24 - 100% Capacity Utilization During Q4-24 - Current Activities: - Procurement of Equipment and Materials Underway - Modification of FBR Reactors Underway - Initial Hires
Slide 15: Third Quarter Key Initiatives
THIRD QUARTER KEY INITIATIVES 2022
Slide 16: Government Initiatives
GOVERNMENT INITIATIVES Inflation Reduction Act - US Treasury Department Working on Structure - IMPACT – Re-Shoring PV Value Chain to USA CHIPS & Science Act of 2022 - Department of Commerce Working on Protocol and Criteria - Expect Information Rollout in February - IMPACT – Re-Shoring Advanced Semic
Slide 17: Restart Funding Perspectives
RESTART FUNDING PERSPECTIVES Finalizing Capital Requirement - Moses Lake Modification of 12 FBR Reactors (100% Capacity) - Moses Lake Packaging and Handling & Polysilicon Analytical Lab - Butte Operational and High Value Growth Investments - Bond Repayment of $ 110M in April 2023 Financing Plan - Re
Slide 18: Correct Assets, Timing and Capacities
CORRECT ASSETS, TIMING AND CAPACITIES ENERGY TRANSFORMATION Electrification & Energy Storage Production Capacity Re-Shoring (U.S.) › Alternative Energy › PV Value Chain › Electric Vehicles › Advanced Semiconductor Fabrication › Battery Materials Granular Silicon Gases Float Zone DIGITAL REVOLUTION ›
Slide 19: Thank You
Thank You Q4 2022 Reporting Feb 23, 2023 www.recsilicon.com