Rec Silicon Asa · OSL:RECSI
Rec Silicon Asa — Q2 2023 Earnings Presentation
19 slides from Rec Silicon Asa's earnings presentation, Aug 15, 2023
Slide 1: Second Quarter 2023 Presentation
SECOND QUARTER 2023 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 › Second Quarter Highlights › Financial Review › Semiconductor Materials › Solar Materials › Foundational Activity Update 3 © REC Silicon ASA. All rights reserved. Confidential August 15, 2023
Slide 4: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS › Revenues up 26% QOQ, driven by increased silicon gas sales and higher semi grade poly prices › Positive EBITDA contribution from Semiconductor segment, driven by higher volumes and seasonal lower energy cost. › Semi Silicon Gas markets stabilizing, PV Poly remains weak ›
Slide 5: Financial Review
FINANCIAL REVIEW 5 © REC Silicon ASA. All rights reserved. Confidential
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS (Millions USD) Q2-23 Q2-22 2022 Q1-23 Revenues $36.7M Semiconductor Materials $ 36.6 $ 44.9 $ 147.4 $ 29.0 - Polysilicon Sales volume increase by 0.4% vs. Q1-23 Solar Materials 0.1 0.0 0.2 0.1 - Silicon Gas Sales volume increase by 32.7% vs. Q1-23 Other 0.1 0.1 0.2 0.1 Revenues
Slide 7: Semiconductor Materials Segment Financial Performance
SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE Revenues EBITDA $44.9M (USD Millions) Revenues $36.6M $36.6M $36.6M - 26.4% increase in revenues vs. Q1-23 $31.5M - Polysilicon Sales Volume – 1.6% decrease vs. Q1-23 $29.0M - Semiconductor Grade Polysilicon - decrease by 10.2% - Polysilicon Sale
Slide 8: Cash Flows
CASH FLOWS June 30, 2023 Cash Balance $15.0M Cash Flows ($34.1M) Decrease in Cash During Q2’23 $140.0 (USD Million) $120 $190 Cash Flows From Operating Activities ($22.4M) - ($8.5M) EBITDA $100 $140 - ($3.7M) Working Capital - ($3.2M) Increase in inventories $80 - $1.4M Increase in receivables ($110
Slide 9: Debt
DEBT Debt Maturity Profile (USD Million) Term Loans $120.3 Lease Liabilities Nominal Debt $213.0M Note - Property Tax Settlement - $29.2M Increase during Q2-23 - $30.0 Change in Debt - ($0.8M) Changes in Lease Liabilities Nominal Net Debt $198.0M $110.0 - $63.3M Increase During Q2-23 $38.1 - $34.1M
Slide 10: Semiconductor Materials
SEMICONDUCTOR MATERIALS 10 © REC Silicon ASA. All rights reserved. Confidential
Slide 11: Silicon Gases
SILICON GASES Silicon Gas Silicon Gas Sales Sales Volumes (MT) - 849MT Shipped in Q2-23 - 32.7% Volume increase vs. Q1-23 - Silicon gas sales price – 13.3% decrease vs. Q1-23 Semiconductor remains challenged - Industry participants project we are at or near a stabilized bottom for now - Inventory dr
Slide 12: Semiconductor Grade Polysilicon
SEMICONDUCTOR GRADE POLYSILICON Semiconductor Grade Polysilicon Sales Volumes (MT) Semiconductor Grade Polysilicon Sales - 143MT Shipped in Q2-23 - Increase of 50% compared to Q1-23 - Semiconductor grade polysilicon price – 10.2% increase vs Q1-23 Seasonality, production reduction, and deferrals - C
Slide 13: Solar Materials Update
SOLAR MATERIALS UPDATE 13 © REC Silicon ASA. All rights reserved. Confidential
Slide 14: PV Polysilicon Market
PV POLYSILICON MARKET Polysilicon Pricing USD/KG 45 Solar installations in Q2 2023 remain strong - Total year forecast now predicted above 340GW 40 35 Prices declined in Q2 30 - China prices experienced sharp decline - Down ~500% YOY 25 - Down ~300% in Q2 compared to Q1 20 Outside China polysilicon
Slide 15: Moses Lake Restart Update
MOSES LAKE RESTART UPDATE Moving towards startup - Modified FBR Reactors ready for startup - FBR Reactor successful inert trial run - Silane Unit (3.0) modifications to be completed in September - Silane Unit (3.0) mechanical integrity inspections completed - Product Handling system installation ong
Slide 16: Foundational Activity Update
FOUNDATIONAL ACTIVITY UPDATE 16 © REC Silicon ASA. All rights reserved. Confidential
Slide 17: Foundational Activity Update
FOUNDATIONAL ACTIVITY UPDATE Contracts - FBR Polysilicon offtake agreement with Hanwha expected to be completed within the next month - Supply discussions are ongoing with multiple Silane based Silicon Anode material producers and potential channel partners such as Hanwha Corp Financing plan - $110M
Slide 18: Summary
SUMMARY › Underlying operational performance in line with muted Semiconductor market and challenging regional electricity short market › Necessary financing of Moses Lake restart and Butte upgrades secured › Polysilicon long term offtake contract final completion expected within the next month › Mos
Slide 19: Thank You
Thank You Q3 2023 Reporting November 15, 2023 www.recsilicon.com