REC Factory Tour Presentation 12th June

8/12/2019 REC Factory Tour Presentation 12th June

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FACTORY

TOURPRESENTATION

12 June 2014


2/31

2 2013 REC All rights reserved.

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 about global economic conditions, the economic conditions of the regions andindustries that are major markets for REC Solar ASA and REC Solar ASAs (including subsidiaries and affiliates) lines of

business. These expectations, estimates and projections are generally identifiable by statements containing words such as

expects, believes, estimates or similar expressions. Important factors that could cause actual results to differ materia lly

from those expectations include, among others, economic and market conditions in the geographic areas and industries that

are or will be major markets for REC Solar ASAs businesses, energy prices, market acceptance of new products and

services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors

as may be discussed from time to time in the Presentation. Although REC Solar ASA believes that its expectations and the

Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or

that the actual results will be as set out in the Presentation. REC Solar ASA is making no representation or warranty,expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC Solar ASA nor any

of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

The presentation was prepared for a factory tour on June 12, 2014. Information contained within will not be updated. The

following slides should be read and considered in connection with the information given orally during the presentation.

The REC Solar ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the Act), and

may not be offered or sold in the United States absent registration or an applicable exemption from the registration

requirements of the Act.


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Agenda

Introduction to REC

Solar fundamentals and technology

introduction

State-of-the-art manufacturing

Factory tour and Q&A


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Listed on Oslo Stock Exchange (RECSOL) with equity market cap. of ~USD 700m

REC is an integrated solar panel manufacturer

Wafer Cell Module System

Silicon wafers Cells PV modules Project development

Fully automated

production facility

Casting and sawing

640 MW capacity*

Automated

production facility

Surface treatment

770 MW capacity*

Fully automated

production facility

Assembly

910 MW capacity*

Partnering with top-

tier project

developers

Limit resource

requirements and

risk exposure in newprojects

*As of 31.12.2013

State of the art production facility

one factory at one site

REC leverages high-quality solar panel manufacturing, R&D and trusted brand to

develop leading market positions in Europe, Asia and the US


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REC has a strong financial position

Strong balance sheet and returned to profitability (1)

1Q 13 2Q 13 3Q 13 4Q 13 1Q 141 1 1 1

181

153

122

0

50

100

150

200

-20

-15

-10

-5

0

5

10

15

170159

EBITDA margin Revenues

1

Module

EBITDA

margin (%)

Module

revenues

87

127

434

Assets

220

96

87

251

Liabilities & equity

434

Other current

assets

Cash

Non-current

assets

Current

liabilities

Provisions

Shareholders

equity

(1) Figures for REC Solar ASAs module business

Figures in USDm* As of 30. March 2014


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2014 Q1 solar panel cash cost up 3

USD cents to 67 USD cents/W due to

Lower production volumes due to module

debottlenecking of existing production lines

Higher volume and price of external silicon

blocks (related to furnace upgrade)

The fire at the cell plant

The fire in our plant in Tuas,Singapore in March 2014 resulted in

a temporary close down of 2(out of 8)

cell lines for 6 weeks

REC maintains target of 812%

reduction in solar panel cash costs in

2014. Cost reduction more likely to bein the lower part of the range

Target cost reductions through;

Increased furnace and module output

Qualification of new suppliers

Cell efficiency improvements

Solar panel cash costs target for 2014 remains firm

Solar panel cash cost (USD cents/W)

7 7 6 7

51 5149 49 50

11 1010 8 8

6

-2%

Q1 14

67

3

Q4 13

64

Q3 13

65

Q2 13

68

Q1 13

69

Exceptional items

SG&A

Cash conv. Cost

Silicon


7/317 2013 REC All rights reserved.

Agenda

Introduction to REC


introduction





Introduction to solar energy

The primary energy consumption globallyin 2013 was 0.015% of the yearly energy

received from the sun

Sunlight is filtered by the atmosphere

1 kW/m2irradiance with clear sky when

the sun is at a zenith angle of

48

(AM1.5 conditions).

Irradiation is often expressed in

sun hours.

Sun hours is the average irradiance

expressed as the equivalent time in

hours at an irradiance level of 1 kW/m2

Oslo: 900 sun hours/year

Germany: 1100-1400 sun hours/year

Spain: 1700-1900 sun hours/year

Hawaii: 2100 sun hours/year

Photovoltaic electricity potential worldwide

Equ

iva

len

ts

toc

ko

fenergysource

Uranium

Natural gas

Oil

Coal

Annual energy

demand

Solar power



The working principle of a silicon solar cell

Creation of voltage difference

Silicon doped with

Phosphorus

(n-type)

Silicon doped withBoron

(p-type)

Emitter (-)

Base (+)

Absorbed light peels off electronsfrom the silicon atoms.

The electrons leave holes. The electronsand holesare mobile.

The electric field at the base-to-emitter border pulls in the electrons.

This generates voltage difference between negative emitter and positive base.

Si+

Si

Mobile electron

Mobile hole

-

+

Bound electrons

-



0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0 500 1000 1500 2000 2500

Sp

ec

tra

lirra

diance(

Wm

-2nm-1)

Wavelength (nm)

Why is the efficiency of a silicon solar cell not 100%?

Long wavelengths does not

have enough energy to

peel of electrons.

Short wavelengths haveextra energy above that

needed to peel of electrons.

100%

75%

45%

Fundamental limits to

voltage by laws of physics

Material quality and

cell design

Practical silicon solar cells:17-25%

29%

Silicon is not sensitive to

the whole solar spectrum.



Optical and electrical losses in solar cells

11

-+ -

+

Reflection

Back surface

recombination

Bulk recombination

Shadow

SiNxARC

Emitter

p-Si

Al

Ag

AgAl



Main components of a solar panel

Anti-reflective Glass Protects cells from the environment Offers mechanical strength

Anti-reflective coating improves light absorption

EVA Bonds back sheet, glass and cells into one

laminated structure

Protects cells from moisture

Cell Converts sunlight to electricity

Back sheet Protects rear side of panel from moisture ingress

Frame

Offers mechanical strength and protection of thelaminate edge

Provides mounting options

Junction box Connection point between the cells and external

cables

Contains bypass diodes to avoid electrical damage



Main photovoltaic technology platforms

REC has a leading position in p-type multicrystalline cells

62%

6%

24%

8%

Photovoltaic technology platforms*P-type Multicrystalline cells

The most widely used PV

technology in the industry

REC has a leading position in p-

type multi cells and high

performance module designs

REC will continue to develop its p-

type multi platform by

implementing commercially viable

technologies

* Forecasted market share in year 2014 for different technology

platforms in the PV industry. Source: SolarBuzz,Oct 2013

p-type

multicrystalline cells

Thin filmn-type

monocrystalline

cells

p-type monocrystalline

cells



Agenda

Introduction to REC


introduction




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State-of-the-art integrated manufacturing facility

Wafer Module

Slurry recovery Compressed air plant

Waste water treatment Chiller

Utility center

Cell

US 2.0bn invested into the worlds

largest integrated manufacturing

facility in Tuas, Singapore

Automated Toyota lean manufacturing

methodology

Wafer design capacity of 640MW*; 2

p-type multi crystalline wafer factories

Cell capacity of 770MW*; 6 fully-

automated cell lines

Module capacity of 910MW*; 4 highly

automated module lines

Pre-invested in capacity on utilities

and infrastructure, allowing for

increased production without furtherinfrastructure investment and lead

time

Transport costs avoided through

integrated manufacturing and

production line proximity resulting in

cost saving

Overview of production facility Description

*As of 31.12.2013


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REC BUSINESSSYSTEMDRIVESCULTUREOFCONTINUOUS

IMPROVEMENTANDLEANMANUFACTURINGTECHNIQUES

RBS principles

1. Understand your business case

2. Organize your people

3. Design and improve your system using our rules inuse:

a. Standardize all activities

b. Establish a customer-supplier connection

c. Optimize flow

d. Improvements & problem solving

(continuously improving the system)

Man

Method

Machine

Material

Safety

Quality

Delivery

Cost

Input Output

HSE & Quality

RBS Principles

Responsible Experienced Collaborative Straight forward

Perfect FlowWaste

Reduction 0 Defects

Customer Satisfaction

Best Safety Best Quality

Shortest Lead TimeLowest Cost

Stability & continuous

improvements

Source: REC Solar

Impact (Selected examples)

Example Impact Industry

Direct manufacturing employees per MW

in module factory0.51 -

Total recorded injuries (incidents per

million working hours)

0.4 -

2013 Customer claims (parts per million) 62 -

2013 cost improvement projects 245 -

Wafer yield 94.0% 92%

Cell yield 98.6% 97-98%

Module yield 99.2% 98%

REC Business System (RBS)


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RBS- ICCM (In-Control, Capable and Maintain) methodology

to understand and realize the potential of current technology

In the ICCM methodology, each of the wafer, cell and module process step are

further breakdown into sub-processes Process transformation is done on each sub-processes for detail

understanding of the purpose of each steps, interaction with upstream and

downstream processes and the critical process parameters

These details understanding are mapped in Focus Diagram for establishing

the control plan

Process Flow Mapping Process Transformation Focus Diagram


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RBS- ICCM (In-Control, Capable and Maintain) methodology

to understand and realize the potential of current technology

8-Steps ICCM was used to ensure new technology is understood and

documented in the REC Product Development Framework


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REC quality policy

ero defects

Supplier

Quality / IQA

In-Process

Quality /

OQC

Quality

Mgmt

System

Customer

Quality

Supplier

Qual

Supplier

Audit

IQA

IPQC

PCRB

MRB

SPC

Champion

Doc Control

ISO Cert

Calibration /

GR&R

Customer

Complaint

Reliability

SRS

OQC

Change

Mgmt

FA Analysis

MMS

REC has continuousfocus on quality and

improvement in order to

ensure competitive

advantages

Key focus on the Group's

goals on cost reduction,profitable growth,

technological advances,

market and customer

focus and organizational

development

REC aim to build acommon set of

methodologies, practices

and know-how that every

employees can relate and

communicate effectively


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Product qualification process above industry standard

Major design changes undergo an extended qualification process, where panels are

tested beyond normal industry standards

This extreme testing ensures panels can perform in the most severe environments,

ensuring increased reliability

x 2

2 x Test

Flash

MechanicalLoad

Damp Heat

Thermal Cycle

HumidityFreeze

Flash

Combined Cycle Test

x 2


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Product quality ensured through extensive in-line controls

Automation

PLC-1:

Tab & String

PLC-3:

LaminationPLC-5:

Framing

PLC-2:

LayupPLC-4:

Box

PLC-6:

Inspection

NeuroCheck 1 & 2

(Cell quality)NeuroCheck 3

(Layup quality) Dark IV Check

Intego (Post-Lam

physical attributes) SunFlasher

Hi-Pot Test (JB)

Manual

EL Image Visiting StationLay-up Check JB Install Quality


22/31


REC product quality

Field studies confirm low degradation of REC panels

Field degradation study shows

RECs degradation to be clearlylower than warranty rate

The quality of RECs production

is also demonstrated by

excellent performance under

LID conditions compared to

comparable modules from other

leading manufacturers

RECs unique anti-PID

treatment is further confirmation

of the benefits of a high quality

manufacturer

RECs quality design and

production mean increased

yield over time compared to

comparable modules from other

leading manufacturers

-1.81%

-4.40% -4.88%-3.93%

-2.06%

0.00% 0.00%

-5.51%

-49.99%-51.25%

-55%

-45%

-35%

-25%

-15%

-5%

RECComp APanel 2

Comp BPanel 2

Comp CPanel 2

Comp DPanel 2

Power loss LID Power loss PID

Power

loss

Comparative results of degradation testing


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REC product quality

High quality demonstrated by low product claim rates

53

127

39

25

4937

939875

1.000

100

100.000

10.000

10

4.3003.500

10.100

4.500

8.800

1.800

16.300

2.000

14.500

3.300

Q4 12

18.000

2.900

Q3 12

28.800

3.400

Q2 12

11.400

3.800

Q1 12

11.500

1.900

Q1 13 Q4 13Q2 13 Q3 13 Q1 14

Comp #2REC Comp #1

Source: REC internal data, external data from Warranty Week (http://www.warrantyweek.com)

Claims rates (PPM) ; parts per million

Dedicated team handles claims from the field

Analysis of claims helps improve product quality

Parallel feedback process in place to handle non-claim issues


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Field information is fed back into design loop

Snow loadresistant frame

Introduced:

December2011

Standardizedconnectors

Introduced:

February2013

New cell fingerprint design

Introduced:

December2013


25/31


MM has formed a very positive opinion of the facility

Report available under NDA (within restrictions)

Mott McDonald (UK)

Many topics considered to be industry leading andbest practice

Report available under NDA (within restrictions)

Black & Veatch (USA)

Overall rating of Green (Good) which is the top ratingof SolarBuyer

Zero critical findings

Report contents not available externally

SolarBuyer (USA)

REC quality is confirmed through third party audits


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REC has an extensive field monitoring program

REC opened its Energy Monitoring &

Control Centre at its Singapore

production facility in April 2013

REC invested in the same hardware

for a number of key sites across a

range of climates

Over 100 MW of sites monitored inEurope, US and SE Asia

Data used to assess performance

against warranty, facilitate

continuous product improvement

and enhance RECs reputation forstrong energy yield

Dedicated personnel constantly

monitor the systems involved

Durrants, UK

4.9 MWp

Richelbach, DE

5.7 MWp

2 x Singapore

150 KWp

Sandy Cross, NC, USA

1.5 MWpKlikov, CZ

1.3 MWp

Kapaa, HI, USA

1.2 MWp

Thailand

1.4 MWp

Locations with

sufficient data amount

of min. 6 mths

Locations under

observation collecting

sufficient data


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Solar parks with REC panels perform above expectations

Germany 5.7 MW UK5 MW

US 1.5 MW

76

78

80

82

84

86

88

PR(%)

Month

Actual PVsyst

2013 2014

Singapore 150 kW

0

20

40

60

80

100

PR(%)

Month

Actual PVsyst

2013 2014

88.0 88.4

86.8

90.6

84.1

85.584.6

88.7

75

80

85

90

95

2011 2012 2013 2014

PR(%)

Actual PVsyst

91.7 91.9

88.1

75

80

85

90

95

Feb '14 Mar '14 Apr '14

Past 3 Months

80.4

86.2 86.4 86.4

79.2

81.8

84.3 84.4

75

80

85

90

95

2011 2012 2013 2014

PR(%)

Actual PVsyst

92.7

91.090.4

75

80

85

90

95

Feb '14 Mar '14 Apr '14

Past 3 Months

Note: (1) PVsyst is an industry standard simulation software for predicting solar energy production(2) Non-operational periods are not considered in yearly data


28/31


REC cell efficiency and module power steadily improving

Improving avg. cell efficiency (%) Improving avg. module power (W)

17,0

18,5

18,0

19,0

17,5

1,0

17,0

2012

17,4

17,4

2011

17,8

Dec-13 Dec 15EDec 14E

18,3

17,6

17,8

17,0

18,3

17,6

0

270

265

260

250

255

275

271

Dec15E

262

2012

258

2011

247

Dec14EDec-13

254


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Capacity expansion on schedule for 1.3 GW by 2015

The module debottlenecking projectto increase capacity to ~1.0 GW is

on track and expected to be

completed by Q3 2014

Decision taken to proceed with

investment of ~USD 30m to increase

module production to ~1.2 GW in2015 and a module capacity of ~1.3

GW by end 2015

Annual Module Production (MW)

900

0

700

800

1,100

1,000

1,500

1,400

1,300

1,200

647

2015E2013

940

2014E

1,200

2015

Year

End

820

2012

721

1,300

2011

annualcapacity


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Investment in new module lines will coincide with introducing

technologies to improve product performance further

WATT class distribution in 2015

REC will increase module productioncapacity by ~300 MW in 2H 2015

through installing two additional lines in

the module factory

The investment in additional module

production capacity will coincide with

introducing new and proven

technologies

REC is expected to improve its premium

quality and realize next generation REC

module with lower cost, higher power

and improved reliability

250

290

New LinesCurrent Lines

300 MW

Capability

1,000 MW

Capability


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Agenda

Introduction to REC


introduction



Documents

REC Factory Tour Presentation 12th June