Rec Silicon Asa · OSL:RECSI

Rec Silicon Asa — Q1 2021 Earnings Presentation

30 slides from Rec Silicon Asa's earnings presentation, May 11, 2021

  1. Slide 1: First Quarter 2021 Presentation

    FIRST QUARTER 2021 FIRST QUARTER 2021 1 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 PRESENTATION

  2. Slide 2: Disclaimer

    FIRST QUARTER Disclaimer 2021 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

  3. Slide 3: Agenda

    FIRST QUARTER Agenda 2021 Q1 Results Tore Torvund Financial Review James A May II Silicon Gases & Semiconductor Update Kurt Levens PV Market Update Chuck Sutton Yulin JV Update Tore Torvund Battery Update Tore Torvund Short-term Business Plan Tore Torvund Q&A Tore Torvund 3 © REC Silicon ASA. All ri

  4. Slide 4: First Quarter Highlights

    FIRST QUARTER First Quarter Highlights 2021 Revenues: $28.1M EBITDA: $ 4.0M March 31, 2021 cash balance of $131.5M - Cash decrease of $3.4M - Cash outflows from operating activities of $1.3M BUTTE FACILITY MOSES LAKE FACILITY Silicon gas sales Solar Materials Developments - Sales volume of 781MT - C

  5. Slide 5: Financial Review

    FIRST QUARTER 2021 Financial Review 5 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 James A. May II

  6. Slide 6: Summary of Segments

    FIRST QUARTER Summary of Segments 2021 (USD million) Q1 2021 Q1 2020 2020 Revenues EBITDA Revenues EBITDA Revenues EBITDA Semiconductor Materials 28.0 10.8 24.5 8.0 121.4 36.3 Solar Materials 0.1 (1.9) 0.2 (2.8) 0.5 6.7 Other 0.1 (4.9) 0.0 (4.1) 0.1 (19.3) REC Silicon Group 28.1 4.0 24.7 1.0 122.1 2

  7. Slide 7: Key Financial Results – Butte Facility

    FIRST QUARTER Key Financial Results – Butte Facility 2021 Revenues EBITDA $40 M Revenues: $28.0M (22.1% decrease vs. Q4’20) $35.9 › Total polysilicon sales volumes 227MT (32.9% decrease vs. 338MT in Q4’20) - Semiconductor grade volumes 137MT $30 M $30.7 $30.3 (45.2% decrease vs. 250MT in Q4’20) $28.

  8. Slide 8: Key Financial Results – Moses Lake Facility and Other

    FIRST QUARTER Key Financial Results – Moses Lake Facility and Other 2021 Revenues (Solar Mat'ls) EBITDA (Solar Mat'ls) EBITDA (Other & Eliminations) $20 M Solar Materials Revenues: $0.1M EBITDA Contribution: ($1.9M) Loss $10 M $14.6 › Net Expense of $1.9M - Comparable to prior period results excludi

  9. Slide 9: Cash Flows

    FIRST QUARTER Cash Flows 2021 $140 $4.0 Cash outflows from operating activities ($1.3M) › EBITDA of $4.0M $135 ($3.4) › Working capital increase ($3.4M) $0.4 $0.2 - Increase in inventories ($7.6M) ($2.2) ($0.2) - Increase in receivables ($0.7M) ($1.7) USD million - Increase in payables and accruals

  10. Slide 10: Debt

    FIRST QUARTER Debt 2021 Debt maturity profile USD Million Indemnity Loan Nominal debt - $220.3M C.A.R.E.S. Act Loan › Decrease of ($0.4M) in Q1’21 Lease Liabilities - ($0.4M) Decrease in Lease Liabilities (IFRS 16) Note - Property Tax Settlement - $0.1M Increase in indemnity loan USD Senior Secured

  11. Slide 11: Butte Facility: Silicon Gases and Semiconductor

    Butte Facility Silicon Gases and Semiconductor Kurt Levens

  12. Slide 12: Electronic Grade Polysilicon in line with expected demand

    FIRST QUARTER Electronic Grade Polysilicon in line with expected demand 2021 REC Shipments - Semiconductor Polysilicon 300 › Q1 shipments seasonally lower - Year on year appreciably higher for Q1 shipments 250 - Traditionally lower quarter due to large customer forecasted order 200 patterns - Metric

  13. Slide 13: Silicon Gas Shipments

    FIRST QUARTER Silicon Gas Shipments 2021 › Underlying demand remains strong - Q1 is normally seasonally low Silicon Gases - Semi, FPD and PV remained at 1,000 high utilization - Logistics cycle times increasing due 800 to Ocean Freight - Backlog increasing due to global Sales Volumes (MT) logistics

  14. Slide 14: 2021 Semiconductor Outlook for REC Silicon

    FIRST QUARTER 2021 Semiconductor Outlook for REC Silicon 2021 › Customer provided forecasts provide a relatively high level of visibility › Current forecasts are in a range Customer Indicative Forecasts - Dependent upon customer inventory drawdown - Dependent upon success and timing of qualification

  15. Slide 15: 2021 Silane Outlook for REC Silicon

    FIRST QUARTER 2021 Silane Outlook for REC Silicon 2021 › All 3 main consuming segments are increasing › Semiconductor increases are tied to full utilization and capacity debottlenecking Customer Indicative Forecasts › Flat Panel capacity has remained fully utilized - Some companies have delayed plan

  16. Slide 16: Butte Expansion - DiChlorosilane (DCS)

    FIRST QUARTER Butte Expansion - DiChlorosilane (DCS) 2021 › Part of REC Silicon Gases portfolio - Demand growth driven by new investments in leading edge semiconductor fabrication - CAGR above underlying semiconductor materials rate (>12%) - REC scale and process enable "world class" cost position -

  17. Slide 17: PV Market Outlook

    FIRST QUARTER 2021 PV Market Outlook 17 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 Chuck Sutton

  18. Slide 18: Solar PV Global Installation Growth Continues

    FIRST QUARTER Solar PV Global Installation Growth Continues 2021 › Continued decline in total PV project installation costs PV Installations MW 1,000,000 900,000 › High power modules and 800,000 higher efficiency modules 700,000 600,000 500,000 › Increasing governmental 400,000 support for renewable

  19. Slide 19: Market Shifting to Higher Efficiency Products

    FIRST QUARTER Market Shifting to Higher Efficiency Products 2021 › Market for High power and increased efficiency modules is increasing - N-type wafer technology next steps for higher efficiency › FBR-B polysilicon meets quality requirements - Demonstrated in Yulin JV plant - Limited investment to u

  20. Slide 20: Demand Driving Up Polysilicon Pricing

    FIRST QUARTER Demand Driving Up Polysilicon Pricing 2021 Average Price China Mono Grade Polysilicon 25 › Demand for PV installations 20 requires all existing polysilicon 15 $/KG capacity 10 5 0 › Polysilicon and wafer prices Source: PV Insights continue to increase Average Mono Wafer Price per Piece

  21. Slide 21: Ultra Low-carbon PV value chain under development

    FIRST QUARTER Ultra Low-carbon PV value chain under development 2021 Solar Value Chain Metallurgical grade Polysilicon Ingot growth / Solar cell Solar module Installations silicon wafers US, 11% Others, 1% ROW, 20% ROW, 25% US, 13% China, 30% Global EU, ROW, 17% Production 25% China, 99% China, 80%

  22. Slide 22: US Political Initiatives

    FIRST US Political Initiatives QUARTER Create and Support US PV Value Chain 2021 › American Jobs Plan - Revitalize manufacturing, Increase capital to support rural manufacturing and clean energy - Buy American to spur jobs that deliver clean energy - Strengthen manufacturing supply chains for critic

  23. Slide 23: Yulin JV Update

    FIRST QUARTER 2021 Yulin JV Update 23 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 Tore Torvund

  24. Slide 24: Yulin JV, China

    FIRST Yulin JV, China QUARTER Improvement in operational performance 2021 Plant characteristics Current Status › Construction completed in 2018 › Delay in Equity Settlement Payment of $4.7M: › Large scale silicon manufacturing facility with - Ongoing negotiations toward acceptable - 19,000 MT FBR-B

  25. Slide 25: Battery Opportunities

    FIRST QUARTER 2021 Battery Opportunities 25 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 Tore Torvund

  26. Slide 26: Silane will be the preferred Silicon source in Battery Anodes

    FIRST QUARTER Silane will be the preferred Silicon source in Battery Anodes 2021 › The US market for silane may exceed 50,000MT/year by 2030 › Global market for silane may exceed 200,000MT/year by 2030 26 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021

  27. Slide 27: Discussions ongoing with several Silicon Anode companies

    FIRST Discussions ongoing with several Silicon Anode companies QUARTER Silane supply contracts with financial guarantees 2021 › REC Silicon is the only company with large-scale production facilities for REC Silicon Next Generation Silicon Anode Manufacturing silane outside of China Moses Lake, WA -

  28. Slide 28: Short Term Business Plan

    FIRST QUARTER 2021 Short Term Business Plan 28 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 Tore Torvund

  29. Slide 29: Silane: Feedstock for the Energy Transition

    FIRST QUARTER Silane: Feedstock for the Energy Transition 2021 SILANE BATTERY VALUE SEMICONDUCTOR SOLAR VALUE CHAIN CHAIN Proven Established Footprint Silicon Anodes to Drive Global Leader to Capture Solar Silane Market …………….. Market Upside Expansion ……………………………… …………………………… Butte Moses Lake Moses

  30. Slide 30: Q2 2021 Reporting July 22, 2021

    FIRST QUARTER 2021 Q2 2021 Reporting July 22, 2021 30 © REC Silicon ASA. All rights reserved. Confidential May 11, 2021 recsilicon.com

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