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1 © REC Silicon ASA. All rights reserved. Confidential

Silane-Based Fluidized Bed

Reactor (FBR) Technology

DevelopmentInternational Silicon Industry, Xi’an, China

September 29, 2016

Mr. Tore Torvund, President & CEO


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 and

industries that are major markets for REC Silicon ASA’s (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 materially 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 Silicon ASA’s 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 Silicon 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 Silicon ASA makes no representations or warranties,

expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither REC Silicon ASA nor

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

This presentation was prepared for the International Silicon Industry Conference in Xi’an China 2016 presented on

September 29, 2016. Information contained herein will not be updated. The following slides should be read and considered

in connection with the information given orally during the presentation.

REC Silicon 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.

Disclaimer


REC SILICON

OVERVIEW


About REC Silicon

September 29, 2016

FBR Technology Leader: largest Fluid

Bed Reaction (FBR) production in the

world

› Annual FBR-A capacity of 16,000

MT

- FBR-A: multi quality granular

polysilicon

- FBR-B: mono quality granular

polysilicon (used at Yulin)

› Largest silane gas producer in the

world

› Over 30 years of experience in the

polysilicon and silicon gas

industries


Metallurgical grade

silicon PolysiliconIngot growth /

wafersCells Modules Systems

Chemical

process

Casting and cutting Surface treatment Assembly Installation, additional

components

What We Do

› REC’s manufacturing process utilizes readily available metallurgical grade silicon,

which is transformed into silane and polycrystalline silicon (polysilicon)

September 29, 2016


Where REC Silicon is Located: Production Facilities

Two polysilicon production facilities in the U.S.

Butte, Montana

Moses Lake,

Washington

September 29, 2016

2015 Production

14,098 MT Granular Polysilicon

18,695 MT Silane Gas

Moses Lake

~366 employees

3,274 MT Silane Gas Loaded

7,233 MT Silane Gas Produced

2,843 MT Siemens Polysilicon

Butte

~245 employees


Over 30 Years of Polysilicon Experience

1980-1999

• 1984: Moses Lake Plant commissioned by Union Carbide

• 1990: Purchased by Komatsu Ltd., creating ASiMI

• 1998: Butte Plant Start up

2000-2009

• 2002: Moses Lake plant becomes Solar Grade Silicon LLC

• 2005: ASiMI purchased by REC, creating REC Silicon

2009-Present

• 2009: Silane III, Silicon III, FBR commercial reactor

• 2010: Start-up of Silane IV

• 2015: Joint Venture breaks ground in Yulin China

September 29, 2016


PV MARKET


Bloomberg Long Term Global PV Demand Expectations

› Global PV demand is

expected to continue to

grow year on year

› Global PV demand will

more than double from

2020 to 2040

› By 2040, global PV

demand will be over 200

GW annually

› China, India and the US

will be the largest markets

250

200

150

100

50

02015 2020 2025 2030 2035 2040

RoWRest of LatAm

Chile

Mexico

Brazil

US

Australia

SE Asia

India

Japan

China

MEA

Europe

GW

Dem

and

by

Year

Demand > 200 GW by 2040

Source: Bloomberg (June 2015)

September 29, 2016


2016 IHS China and ROW Installation Forecast Comparison

September 29, 2016

Europe

Europe Europe Europe

USA

USA

USA

USA

Japan Japan

Japan

JapanIndiaIndia

India

IndiaROW

ROW

ROW

ROW

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Q1'16 Q2'16 Q3'16 Q4'16

GW

China Installs Compared to ROW

China

China

China

China

Source: IHS Technology Markit PV Demand Market Tracker – Q3 2016

Results based on IHS Technology Markit PV Demand Market Tracker – Q3 2016. Results are not an endorsement of REC Silicon. Any reliance on these results is at the third party's own risk.

Visit www.technology.ihs.com for more details


GTM: China Remains Top Solar Market in 2016

› China leads 2016 global demand at 26.4 GW, reaching a peak in its annual installation rate

- In line with its 143 GW by 2020 solar goal

› US is the second-largest 2016 market at 14.5 GW

- Record installations tied to the previously expected expiry of the federal Investment Tax Credit, which has now been extended

› Major shifts in the global solar market in H1 2016:

- 1. China: FIT pullback of 11% and major grid curtailment

- 2. U.S.: Total solar installations surpassed 1 million = 27.5 GW

- 3. Japan: Scaling back FIT support – 12% drop in 2016 demand

- 4. U.K.: FIT pullback of 65% –45% drop in 2016 demand

- 5. India: 23 GW tender pipeline –148% spike in 2016 demand

September 29, 2016

51

73

66

72

80

91

105

0.0

20.0

40.0

60.0

80.0

100.0

2015 2016E 2017E 2018E 2019E 2020E 2021E

Annual In

sta

lled P

V (

GW

dc)

PV Demand 2015-2021E (GW)

China US Japan India UK Germany Australia France Chile ROW

GTM Research, Demand Monitor, Q3 2016


China and US PV Demand Development 2015-2021E

September 29, 2016

15.1

26.4

16.0 16.8

17.5 18.2

19.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

2015 2016E 2017E 2018E 2019E 2020E 2021E

GW

dc

China Annual Installations 2015-2021E (GW)

7.5

14.5

12.2 11.5

14.8

17.9

21.7

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

28.0

2015 2016E 2017E 2018E 2019E 2020E 2021E

GW

dc

US Annual Installations 2015-2021E (GW)



By 2021, Shift in Demand Share as ROW, US and India

Increase Appreciably

September 29, 2016

China18%

United States21%

Japan2%

India12%

UK0%Germany

2%Australia

2%

France2%

Chile1%

ROW40%

GLOBAL DEMAND SHARE 2021E

105 GW Expected to be installed

China36%

United States20%

Japan14%

India7%

UK3%

Germany2%

Australia1%

France1%

Chile1%

ROW15%

GLOBAL DEMAND SHARE 2016E

73 GW Expected to be installed



FLUIDIZED BED

REACTOR (FBR)

TECHNOLOGY


1976

JPL / UCC

FBR Study & Pilots

1996

ASiMi/Komatsu,

FBR Pilots2004

FBR-A Pilot Reactors

•Feasibility

•Modeling/Validation/Operability

2009

FBR-A

Commercial Process

•Supply to Multi Market

2010

FBR-B Pilot

•Demonstrated Enhanced Quality & Operability at Reduced Cost

2017

Yulin Joint Venture Start-up

•Semiconductor quality

•Supply Mono Market

Development of FBR: FBR-A in Moses Lake and FBR-B in

Yulin

September 29, 2016

NE

XT

GE

NE

RA

TI

ON

C o n t i n u a l P r o c e s s I m p r o v e m e n t


Fluid Bed Reactor (FBR) is the Most Efficient Way to Produce

Polysilicon

Hydrogen

Heat

Seed

SilaneGranular Product

SiH4 Si + 2H2

Silane Deposition

Hydrogen

Siemens Reactor TCS Based

Fluid Bed Reactor Silane Based

Low energy efficiency - High cash cost High energy efficiency - Lowest cash cost

Batch Process Continuous production

Requires post processing Ready for use

Mature technology New Technology

Cooling medium

Cooling medium

Reactor outletReactor inlet

Electrical contact

Polysilicon

rods

45"ID

September 29, 2016


FBR Greatly Increases Energy Efficiency

September 29, 2016

3.3

45.8

40

20

28.9

88.9

49.1

0

10

20

30

40

50

60

70

80

90

Hydrochloronation Competitive Technology I REC FBR

kW

h/k

g o

f P

oly

sili

co

n

Polysilicon Silane CVD & Heat Recovery Feed Gas Balance of Plant

Siemens

Note 1 REC silicon data based on 2014 measured energy consumption and actual production. This includes consumption for operations, maintenance, and analytical functions.

Note 2 REC data includes the buildings (lights/HVAC) along with processing, packaging, treatment, and support equipment.

Note 3 Competitive technology data appears to be based on simulations of power consumption for only the process equipment to manufacture Polysilicon when it is operating at 100% utilization)


FBR Growth Expected, but Siemens Polysilicon Dominance

Will Remain

› Approximately 10% current FBR

market share

› FBR growth reflects potential for

cost reduction

› Increase of FBR market share

expected in long term

› Siemens polysilicon still

expected to have majority of

market share in long term

September 29, 2016

Source: ITRPV Seventh Edition Vers 2

September 29, 2016

Yulin JV


TianREC: Youser Group and REC Silicon’s JV

› Ideal Partners:- Established Chinese SOE

Youser Group

- US Proven Technology Leader REC Silicon

› 51% - 49% Partnership

› REC transferred technology to TianREC

› TianREC benefiting from Youser Group experience in China

› Construction of TianRECplant currently well underway

September 29, 2016

Yulin JV Signing Ceremony February 2014


Capacities and TianREC Plant Layout

September 29, 2016

Yulin

Pla

nt

Pro

duction

Capacity:

19,000 MT Granular Polysilicon

300 MT Siemens Polysilicon

500 MT Silane Gas Loading

Siemens Reactor Building

Hydrogenation Steel Structure

FBR Reactor Building


Current View of the TianREC Project Site

September 29, 2016

Administration FBR Unit Silane Units

Siemens Unit


TianREC’s Focus on Health, Safety, and

Environmental

Zero project incidents to date 截止当前，项目安全事故发生率为零

Training Personal Protective Equipment

Personal Protective Equipment Safety Signs

September 29, 2016


Cooperation in Action: TianREC Employees Training at REC

Silicon’s US Plants

September 29, 2016

Around 50 TianREC trainees are in the

process of undergoing extensive training at

REC Silicon’s Moses Lake and Butte facilities“It’s exciting to be a part of an

organization that is the first of its kind,

not only in China, but worldwide.

A lot of time has been spent on training

and along the way, I have been

grateful not only for the valuable

knowledge and experience, but also for

the comradery. REC Silicon staff have

been very supportive and encouraging

during the training process.”

– Mr. Wei Wujie TianREC


MARKET

APPLICATIONS


Granular Polysilicon Enhances Efficiency for Wafer Producers

September 29, 2016

Only Siemens

Siemens

and

Granular

Crucible Loading Time

48.5 mins. 28.5 mins.

Crucible Weight63.8 kg 82.5 kg

40%

improvement

in filling time

30%

increase in

charge weight


FBR Granular Can Increase Productivity in Mono Through

Continuous Feeding

Granular load into hopper

Quartz or

sapphire tube

Mono Crucible

Granular add to melt

› Continuous feeding reduces non-

productive down-time between the

standard batch processes

› 50% crucible cost reduction with

one refill process

Source: Cost effective growth of silicon mono ingots by the application of mobile recharge

system in cz-puller, presented at the 32nd European PV Solar Conference and Exhibition,

20-24 June 2016 Munich Germany

September 29, 2016


Silane Based Siemens: 300 MT of Ultra Pure Polysilicon

FZ Float Zone Puller

› 300 MT of high resistivity

Siemens chunk (Float Zone)

› Market segments will be

semiconductor industry in

China

September 29, 2016


Silane Loading Capacity: 500 MT

September 29, 2016

› 500 MT of silane loading

› Market segments will be

semiconductor and PV

industry in China


Summary

› REC is the leading silane based FBR producer on a global basis

› FBR Technology is the most cost effective way to produce polysilicon

› TianREC will supply Chinese customers with semiconductor grade granular

polysilicon at competitive prices

› Granular polysilicon will improve efficiency and reduce cost in the manufacturing

process of mono and multi wafers

› 300 MT of ultra-pure Siemens chunk (Float Zone) will be available for the high-end

semiconductor industry

› 500 MT of silane gas will be available for the semiconductor/PV market in China

September 29, 2016


The TianREC JV is a

perfect example of the

collaboration between the

US and China to produce

clean and sustainable

solar energy for the world,

and it will bring the best

and most efficient

polysilicon manufacturing

technology to China.

September 29, 2016


Thank You

Learn more: www.recsilicon.com

Documents

Silane-Based Fluidized Bed Reactor (FBR) Technology ... · Silane-Based Fluidized Bed Reactor (FBR) Technology ... Bed Reaction (FBR) production in ... Siemens Reactor TCS Based Fluid