Rec Silicon Asa · OSL:RECSI
Rec Silicon Asa — Q4 2021 Earnings Presentation
22 slides from Rec Silicon Asa's earnings presentation, Feb 17, 2022
Slide 1: Fourth Quarter 2021 Presentation
FOURTH QUARTER 2021 PRESENTATION
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 › Fourth Quarter Highlights › Financial Review › Semiconductor Materials › Solar Materials › Battery Materials › Yulin JV › Strategic Plan 3 © REC Silicon ASA. All rights reserved. Confidential February 18, 2022
Slide 4: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS Revenues: $43.2M EBITDA: ($ 0.4M) Loss December 31, 2021 Cash Balance of $110.5M - Cash Decrease of $15.9M - Cash Outflows from Operating Activities of $11.0M Silicon Gas Sales - Sales Volume of 750MT - Silane Price Increase 2.4% vs. Q3 2021 Semiconductor Segment Polysilico
Slide 5: Financial Review
FINANCIAL FOURTH QUARTER REVIEW 2021
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Revenues $43.2M - Polysilicon Sales Volume Increase by 21% vs. Q3-21 (Millions USD) Q4-21 Q4-20 2021 2020 Q3-21 - Silicon Gas Sales Volume Increase by 3% vs. Q3-21 Semiconductor Materials $ 43.2 $ 35.9 $ 142.8 $ 121.4 $ 36.2 Solar Materials 0.0 0.1 0.1 0.5 0.0 EBITDA Loss ($0.4M
Slide 7: Semiconductor Materials Segment Financial Performance
SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE Revenues EBITDA (USD Million) Revenues $43.2M $43.2 - 19.3% Increase in Revenues vs. Q3-21 $35.9 $35.5 $36.2 - Polysilicon Sales Volume – 21% Increase vs. Q3-21 $28.0 - Semiconductor Grade Polysilicon - Increased by 59% - Polysilicon Sales Price
Slide 8: Cash Flows
CASH FLOWS Cash Flows From Operating Activities $11.0M Cash Flows (USD Million) - ($0.4M) EBITDA Loss - $1.1M Working Capital Decrease $1.2 - $5.2M Decrease in Inventories - ($5.5M) Decrease in Receivables $0.4 - $1.4M Increase in Payables - ($9.4M) Interest Paid $0.6 - ($1.9M) Customer Prepayments
Slide 9: Debt
DEBT Debt Maturity Profile (USD Million) Nominal Debt $197.5M Indemnity Loan - ($1.0M) Decrease During Q4-21 Note - Property Tax Settlement Lease Liabilities - ($0.9M) Decrease in Property Tax Note USD Senior Secured Bond - ($0.1M) Decrease in Lease Liabilities $110.5 $113.7 Nominal Net Debt $87.1M
Slide 10: Semiconductor Materials
SEMICONDUCTOR FOURTH QUARTER MATERIALS 2021
Slide 11: Semiconductor Materials Markets
SEMICONDUCTOR MATERIALS MARKETS Semiconductor Wafer Production Semiconductor Materials Demand 20,000 - Semiconductor Wafer Demand Drives Demand Polysilicon and Silicon Gas 17,500 Requirements 15,000 Key Wafer Demand Drivers Million Square Inches (MSI) - Data 12,500 - 5G Telecom - Automotive - Intern
Slide 12: Semiconductor Grade Polysilicon
SEMICONDUCTOR GRADE POLYSILICON Semiconductor Grade Polysilicon Semiconductor Grade Polysilicon Sales Sales Volumes (MT) - 371MT Shipped in Q4-21 - Q1-22 Sales Accelerated Into Q4-21 - Demonstrates Increases in Demand - Price Decreased by 1% vs. Q3-21 - Higher Mix of Lower Priced CZ Grade Products -
Slide 13: Silicon Gases
SILICON GASES Silicon Gas Sales Silicon Gas Sales Volumes (MT) - 750MT Shipped in Q4-21 - Supply Chain Constraints Impacted Shipments - Limited Availability of Bookings - Delays in Module Returns - Silane Price Increased by 2% vs. Q3-21 Demand Expected to Remain Strong - Q1-22 Sales Volumes 831 881
Slide 14: Solar Materials
SOLAR FOURTH QUARTER MATERIALS 2021
Slide 15: PV Polysilicon Market
PV POLYSILICON MARKET Global PV Module Production 2021 Global PV Module Production (Polysilicon Equivalent kMT) - ~200GW Modules Produced 1,050kMT - ~575kMT Estimated Poly Consumed 2022 Global PV Installation Forecast 900kMT - 240GW to 250GW Estimated Module Production - ~650kMT Estimated Polysilico
Slide 16: Plans to Restart Moses Lake
PLANS TO RESTART MOSES LAKE US Political Initiatives - Build Back Better Act Passage Uncertain - Strong Support for Solar Energy Manufacturing for America (SEMA) Act - Uncertainty May Delay Restart of REC Silicon’s FBR Manufacturing Facility Expected Timing of Restart - Working to Develop Business C
Slide 17: Battery Materials
BATTERY FOURTH QUARTER MATERIALS 2021
Slide 18: Battery Materials Update
BATTERY MATERIALS UPDATE Global Forecast of Electric Vehicle Battery Market Potential Sales - Proliferation of Electronic Vehicles will Drive Demand for Highly Efficiency Batteries 35M Silicon Anode Technology Initiatives 30M - Silane is the Preferred Material for Many Developers - Work to Qualify C
Slide 19: Yulin JV
FOURTH QUARTER 2021 YULIN JV Z 0 U _ hy U mT ir
Slide 20: Yulin JV
YULIN JV Sales - Sales Volumes Limited by Production - Granular Polysilicon Qualified with Mono PV Customers Production - Q4-21 Production - Loaded Silane 146MT - FBR Granular 3,367MT - Siemens 29MT - 2021 Production - Loaded Silane 487MT - FBR Granular 13,729MT - Siemens 78MT Status of Investment -
Slide 21: Strategic Plan
STRATEGIC PLAN Semiconductor Materials - Stable Cashflows in Markets with Stable Growth - Executing Projects to Enhance Product Offerings Solar Materials - Superior FBR Technology Affords Low Cost and Ultra Low Carbon Footprint - Strong Support for SEMA Act Battery Materials - Unique Position as Onl
Slide 22: Q1 2022 Reporting
Q1 2022 Reporting May 11, 2022 www.recsilicon.com