Slide 1: Second Quarter 2022 Presentation
SECOND QUARTER 2022 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 › Second Quarter Highlights › Financial Review › Semiconductor Materials › Solar Materials › Strategic Plan Update 3 © REC Silicon ASA. All rights reserved. Confidential August 17, 2022
Slide 4: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS Revenues: $45.0M EBITDA: ($ 1.1M) June 30, 2022 Cash Balance of $173.0M - Cash Decrease During Q2 2022 of ($31.0M) - ($17.6M) Cash Outflows from Operating Activities - ($12.8M) Cash Outflows From Investing Activities - ($ 0.6M) Cash Outflows From Financing Activities Silico
Slide 5: Second Quarter Financial Review
SECOND QUARTER FINANCIAL REVIEW 2022
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS (Millions USD) Q2-22 Q2-21 2022 2021 Q1-22 Revenues $45.0M - Polysilicon Sales Volume Increase by 76% vs. Q1-22 - Silicon Gas Sales Volume Increase by 62% vs. Q1-22 Semiconductor Materials $ 44.9 $ 35.5 $ 79.4 $ 142.8 $ 34.5 Solar Materials 0.0 0.0 0.0 0.1 - Other 0.1 0.1 0.1 0.
Slide 7: Semiconductor Materials Segment Financial Performance
SEMICONDUCTOR MATERIALS SEGMENT FINANCIAL PERFORMANCE Revenues EBITDA Revenues $44.9M (USD Millions) - 30% Increase in Revenues vs. Q1-22 $43.2M $44.9M - Polysilicon Sales Volume – 76% Increase vs. Q1-22 $35.5M $36.2M $34.5M - Semiconductor Grade Polysilicon - Increase by 78% - Polysilicon Sales Pri
Slide 8: Cash Flows
CASH FLOWS Cash Flows Cash Flows From Operating Activities ($17.6M) (USD Million) - ($1.1M) EBITDA - ($0.1M) Working Capital Decrease ($1.1) ($0.1) - $2.0M Decrease in Inventories ($8.5) $0.4 - ($5.3M) Increase in Receivables ($7.9) ($0.4) - $3.2M Increase in Payables ($12.8) - ($7.9M) Fx Loss ($0.6
Slide 9: Debt
DEBT Debt Maturity Profile (USD Million) USD Senior Secured Bond $173.0 Lease Liabilities Nominal Debt $185.9M - ($0.6M) Decrease During Q2-22 $113.9 - ($0.6M) Changes in Lease Liabilities Nominal Net Debt $12.9M Jun. 2022 - $30.4M Increase During Q2-22 - $31.0M Decrease in Cash $110.0 - ($ 0.6M) De
Slide 10: Second Quarter Semiconductor Materials
SECOND QUARTER SEMICONDUCTOR MATERIALS 2022
Slide 11: Silicon Gases
SILICON GASES Silicon Gas Silicon Gas Sales Sales Volumes (MT) - 852MT Shipped in Q2-22 - 12% Volume Increase vs Q1-22 Due to Module Returns - Supply Chain Constraints Continue to Limit Shipments - Limited Availability of Bookings - Delays in Module Returns - Silane Price Broadly Unchanged vs. Q1-22
Slide 12: Semiconductor Grade Polysilicon
SEMICONDUCTOR GRADE POLYSILICON Semiconductor Grade Polysilicon Sales Volumes (MT) Semiconductor Grade Polysilicon Sales - 333MT Shipped in Q2-22 - Sales Volumes Reflect Normal Seasonal Variation - Increase of 76% vs. Q1-21 Sales Volumes - Semiconductor Grade Prices Increased by 3% vs. Q1-22 - Total
Slide 13: Second Quarter Solar Materials
SECOND QUARTER SOLAR MATERIALS 2022
Slide 14: Moses Lake Restart Update
MOSES LAKE RESTART UPDATE Restart Activities Underway - Target: - 1st Production in Q4-23 - 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 f
Slide 15: Government Initiates
GOVERNMENT INITIATES Inflation Reduction Act - Passed Senate on August 7, 2022 - Passed House of Representatives on August 13, 2022 - Awaiting President Biden’s Signature - SEMA is Included in the Inflation Reduction Act - Refundable Tax Credit for $3/kg of Solar Polysilicon Manufactured - Will Driv
Slide 16: Restart Funding Perspectives
RESTART FUNDING PERSPECTIVES $150M Estimated Capital Expenditures - Modification of 12 FBR Reactors (100% Capacity) - Packaging and Handling - Polysilicon Analytical Lab Funding Structure Dependent Upon: - Capital Expenditures - Senior Secured Bond Refinancing - Offtake Contract Terms - Cost of Capi
Slide 17: Strategic Plan
STRATEGIC PLAN Megatrends to Support REC Silicon Growth - Technology – Semiconductor Materials - Renewable Energy – Solar Materials - Energy Storage – Silane Gas Capability Semiconductor Materials - Stable Cashflows in Markets with Stable Growth - CHIPS and Science Act Expected to Increase Demand fo
Slide 18: Q3 2022 Reporting
Q3 2022 Reporting November 16, 2022 www.recsilicon.com