20100316 investors field trip

MARCH 16, 2010

Field Trip

Moses Lake

March 16

2 Copyright Renewable Energy Corporation ASA. All Rights Reserved March 16, 2010

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 and industries that are major markets for REC ASA and REC 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‟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 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 ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC 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 analyst field trip held on March 16, 2010. 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 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.

REC

Silicon

REC

GROUPIntroduction to REC Silicon

Tore Torvund

Field Trip

Moses Lake

March 16


Two U.S. production facilities

MOSES LAKE, WASHINGTON

BUTTE, MONTANA

Field Trip

Moses Lake

March 16


REC Silicon in Moses Lake

FOCUS ON THE SOLAR INDUSTRY

PRODUCTS

– POLYSILICON: Solar Grade Polysilicon

– SILANE GAS

OPERATIONS

– Silicon 1.0 and Silicon 3.0 in production

– Silicon 4.0 to start production mid 2010

ORGANIZATION

– Approximately 475 employees

Field Trip

Moses Lake

March 16


REC Silicon in Butte

FOCUS ON THE ELECTRONICS INDUSTRY

PRODUCTS

– POLYSILICON: Float Zone (FZ), Electronic Grade

Polysilicon (EG)

– SILANE GASES: Monosilane & Disilane

OPERATIONS:

– Silicon 2.0

ORGANIZATION:

– Approximately 300 employees

Field Trip

Moses Lake

March 16


1983 - 1984 Construction of Moses Lake plant by Union Carbide Corporation

1990Moses Lake Plant purchased by Komatsu Ltd., creating Advanced Silicon

Materials Inc. (ASiMI)

1996 - 1998 Construction of Butte, Montana plant

2002REC enters into Joint Venture with Komatsu –

Moses Lake plant becomes Solar Grade Silicon LLC (SGS) – Silicon 1.0

2005ASiMI (Silicon 2.0) and remaining shares of SGS purchased by REC,

creating REC Silicon

2006REC Silicon breaks ground on Silicon 3.0 in Moses Lake and decides to

invest in additional debottlenecking in the Butte plant

2007 REC decides to invest in additional production capacity – Silicon 4.0

2009Start-up of Silicon 3.0

REC Silicon bought Komatsu Ltd‟s 25% ownership interest in Butte entity

2010 Silicon 4.0 scheduled to start production

REC Silicon history

REC

Silicon

REC

GROUPProducts and Markets

Field Trip

Moses Lake

March 16


What is a polysilicon plant?

A polysilicon plant consists of two separate plants working seamlessly together

Silane gas plant

Polysilicon plant (Siemens or FBR reactor plant)

POLYSILICON PLANT SILANE GAS PLANT

Field Trip

Moses Lake

March 16


POLYSILICONSILANE

GRANULAR

SOLAR GRADE

CHUNK SOLAR

GRADE

FLOAT ZONE

ELECTRONIC

GRADE

SIE

ME

NS

TE

CH

NO

LO

GY

FB

R T

EC

HN

OL

OG

Y

FOR POLY PRODUCTION

FO

R C

US

TO

ME

RS

SILANE FOR

MERCHANT

MARKET

Products and Technology

Field Trip

Moses Lake

March 16


Applications of REC Silicon products

Silane

Gas

Solar Grade Polysilicon

Electronics Grade

Polysilicon

Float Zone Polysilicon

Used in production of Semiconductors,

Flat Panel Displays and Thin Film

Technologies

Applications for the

Solar Industry

Delivered to the

Semiconductor industry and

other Electronic Markets

High-purity Polysilicon for the Power

Semiconductor and emerging Green Energy

industries incl. Hybrid/Electric cars

REC

Silicon

Field Trip

Moses Lake

March 16


POLY REVENUE BY MARKET

TOTAL REVENUE BY SOURCE

Solar Grade $32M18%

Electronic Grade$80M45%

Float Zone$36M20%

OffSpec$30M17%

Internal Poly

$272M44%

Silane$166M27%

External Poly

$177M29%

Revenue segmentation - 2009

REC

Silicon

REC

GROUP

Silicon 3.0 and Silicon 4.0

updates

Field Trip

Moses Lake

March 16


Silicon 3.0 & Silicon 4.0

SILICON 3.0

Design capacities:

– Silane 9,000 MT

– FBR 10,500 MT

Investment:

– Total CAPEX NOK 6,000 million

In production

SILICON 4.0

Design capacities:

– Silane 9,000 MT

– Offload Capacity 3,000 MT

Investment:

– Total CAPEX NOK 4,200 million

Completion:

– Project 95% complete

Start-up:

– Scheduled start-up mid 2010

Field Trip

Moses Lake

March 16


Siemens FBR Silane Loading

SilaneSilaneSilane

Silicon 1.0 Silicon 4.0Silicon 3.0

Moses Lake Plant Diagram

Field Trip

Moses Lake

March 16


Silicon 3.0 Silane Production History

Silicon 3.0: Silane ramp-up (March 2009 – March 2010)

FBR

Pluggage

Pluggage

Pluggage

Inspection

Pluggage

Field Trip

Moses Lake

March 16


Microscopic photo of deposit material

Field Trip

Moses Lake

March 16


Silicon 3.0: FBR ramp-up (March 2009 – March 2010)

Silicon 3.0 Poly Production History

FBR

Lack of silane

Inspection

Lack of silane

Field Trip

Moses Lake

March 16


Crack in reactor discharge pipe

The plant was shut down for process

safety reasons due to problems with a

discharge pipe

Discovered a potential for material

fatigue with the reactor discharge pipe

which could result in additional failure

Investigations indicated thermal and

mechanical stress

5 cm

Field Trip

Moses Lake

March 16


Silicon 3.0 - today

Silane and FBR:

Silane unit producing high quality silane for FBR source gas

Start-up equipment reliability issues resolved

Improved production and granular quality resulting from longer, more stable reactor cycles

REC

Silicon

REC

GROUPOutlook

Field Trip

Moses Lake

March 16


$0

$200

$400

$600

$800

2003 2004 2005 2006 2007 2008 2009

$0

$100

$200

$300

$400

2003 2004 2005 2006 2007 2008 2009

REVENUE ($ Million) EBITDA ($ Million)

Strong, profitable growth

Field Trip

Moses Lake

March 16


0

5,000

10,000

15,000

20,000

25,000

2007 2008 2009 2010 2011 2012

Silane production (MT)

0

5,000

10,000

15,000

20,000

2007 2008 2009 2010 2011 2012

Polysilicon production (MT)

Production volumes

Field Trip

Moses Lake

March 16


Competitive polysilicon cash cost position (2010 $/Kg)

REC Silicon has a strong cost position

based on:

Large scale production

25 years of experience

Favorable energy cost

New technology

– Target FBR cash cost below 20 $/kg

Sources: Sage Concepts; Company presentations; Equity Analyst

Reports; REC Silicon Field data.

Field Trip

Moses Lake

March 16


REC Silicon - Summary

Strong position in growing markets for

Polysilicon and Silane, and recognized track

record

Proprietary REC technology for Polysilicon with

considerable lower energy consumption and

better form factors

Strong growth in production from 8,000 Metric

tons (2009) to 17,000 Metric tons (2012)

Very attractive cost position

Experienced organization with 25 years of

know-how

REC

Silicon

REC

GROUPThank you

REC

Silicon

REC

GROUPMarket Update

Kurt Levens

Field Trip

Moses Lake

March 16


Contents

Products & Markets

Market Drivers

Polysilicon

Float Zone

Silane

Conclusion

REC

Silicon

REC

GROUPProducts & Markets

Field Trip

Moses Lake

March 16


It starts with the silane molecule

Enables all silicon deposition

applications

Purest silicon precursor

More than 25 years of experience

Silane allows optimization of product

mix for value creation, unlike

trichlorosilane (“TCS”)

Signature Silane TM

Signature

Silane TM

Field Trip

Moses Lake

March 16


Silane Molecule – allows optimization of product mix

Silane

SiH4

Field Trip

Moses Lake

March 16


Global presence – world class customers

ASIA44%

N. AMERICA7%

EUROPE49%

2009 Sales

$626.8 MM

Field Trip

Moses Lake

March 16


Contracts

Silane

– 90% declining to 50% of the expected sales volume are under contract over the next 5 years

– Long term contracts are for fixed volumes with provisions for incremental yearly volume

– Prices are fixed with provisions for market conditions

Float Zone

– 50% moving to 90% of future volumes are under contract

– Long term contracts are for fixed volumes and variable volumes set within a min/max band

– Currently finalizing multiple contracts

Electronic Grade Contracts

– 80% of potential output is under long term contract

– Long term contracts are for fixed volumes and variable volumes set yearly within a min/max band

– Prices are fixed, market based or variable within a min/max band

Solar Grade Polysilicon Contracts

– 83% of total output is under long term contract

– Long term contracts are for fixed volumes and variable volumes set yearly within a min/max band

– Prices are fixed, market based or variable within a min/max band

REC

Silicon

REC

GROUPMarket Drivers

Field Trip

Moses Lake

March 16


Electronic Grade

Polysilicon

Float Zone Polysilicon

Silicon GasSolar Grade Polysilicon

Key market drivers

Flat Panel (TFT) PhotovoltaicsSemiconductor

Field Trip

Moses Lake

March 16


Source: IC Insights (February 2010)

-25 %

-15 %

-5 %

5 %

15 %

25 %

35 %

45 %

55 %

0.0

50.0

100.0

150.0

200.0

250.0

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10F

11F

12F

13F

14F

UnitGrowth %

BillionUnits

IC UNITS GROWTH RATE

Semiconductor – Worldwide unit shipments

Field Trip

Moses Lake

March 16


Data set above derived from external sources: 2004-2008 via Solarbuzz LLC; 2009-2013 demand points conglomerated from EPIA, Bloomberg New Energy Finance,

Solarbuzz, Barclays, UBS, ML-BofA, Piper Jaffray, Deutsche Bank, DisplaySearch, Displaybank Korea, iSuppli, Linx, Alternative Energy Consulting, Navigant & Sage

Concepts. PV Demand High is the 2nd highest demand assumption from this set, whereas PV Demand Low is the 2nd lowest demand forecast. PV Demand Median presents

the median of all data points.

-

5,000

10,000

15,000

20,000

25,000

30,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MWp

PV DEMAND HIGH PV DEMAND MEDIAN PV DEMAND LOW

Photovoltaics (PV) – Demand projections

Field Trip

Moses Lake

March 16


0

50,000

100,000

150,000

200,000

250,000

300,000

00

0 m

2

0%

10%

20%

30%

40%

50%

60%

70%

Gro

wth

000 Sbstr 16,492 21,313 26,741 32,681 39,308 48,302 57,549 66,507 73,452 76,421 83,303 85,839 89,136 92,696 95,370

000 m2 4,556 7,083 10,261 15,116 23,782 38,923 60,443 85,759 110,157 134,288 162,351 182,353 204,497 226,075 246,387

Area Grwth 55% 45% 47% 57% 64% 55% 42% 28% 22% 21% 12% 12% 11% 9%

Sbstr Grwth 29% 25% 22% 20% 23% 19% 16% 10% 4% 9% 3% 4% 4% 3%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Flat Panel (TFT) – Display area growth

Source: DisplaySearch (December 2009)

Field Trip

Moses Lake

March 16


Market wrap-up

SEMICONDUCTOR

Square inches of wafer consumed is forecast at +26% year on year

Memory devices will lead growth and may be in short supply

Semiconductor content of everyday life will continue to expand

Large volume device demands driven by emerging countries

PHOTOVOLTAIC (PV)

PV price pressure persists and cost reduction pressures increasing; market remains

strongly geographically dependent

Increased utility activity in US and China

True demand is still best characterized as a range

FLAT PANEL (TFT)

LCD Monitor Production Expected to Reach All-Time High in Q1 2010

Gen 6 & larger fabs expected to average 87%+ fab utilization rate this year

Focus on growth will be in China over the next 2-3 years

REC

Silicon

REC

GROUPPolysilicon

Field Trip

Moses Lake

March 16


REC Polysilicon products

Siemens Product

Very dense and hard material

Requires further processing before use

Most common production method currently

Preferentially used in semiconductor applications

Expensive cost structure for most PV applications

ROD-CHUNK-TEAR DROPSIEMENS TECHNOLOGY

GRANULAR POLYSILICONFBR TECHNOLOGY

Granular Product

Flowable form factor

Ready to use for customer application

Currently target of focused research and

development by industry

Preferentially used in PV due to cost versus

performance benefits

Lowest cost production method

Field Trip

Moses Lake

March 16


Customer acceptance for FBR products

Applications

– Silicon 3.0 FBR products have been qualified and accepted in 6 different applications

Customers

– 18 different customers in 8 countries on 3 continents have used or are currently using Silicon 3.0 FBR products

Markets

– The majority of applications are for PV silicon wafers

– Other applications are also currently using FBR due to its preferrable form factor properties

Field Trip

Moses Lake

March 16


0

50,000

100,000

150,000

200,000

250,000

2010 2011 2012 2013

MT

SUPPLY INCUMBENTS SUPPLY NEW ENTRANTS BASELINE DEMAND MODERATE DEMAND OPTIMISTIC DEMAND

Potential supply from “Incumbents” take into account production forecasts from Hemlock, Wacker, REC, MEMC, Tokuyama, Mitsubishi , Osaka Titanium , plus OCI

and GCL-Poly. All the rest are classified as “New Entrants.” Supply data excludes UMG-Si. Demand Scenarios include “High, Median & Low” consumption forecasts

from PV, Semi and Other demand.

Potential supply vs. demand scenarios

Field Trip

Moses Lake

March 16


Polysilicon prices

0

50

100

150

200

250

300

350

400

450

500

$/kg

SPOT PRICES CONTRACT PRICES

Sources: Photon Consulting, Bloomberg New Energy Finance, Sage Concepts & REC data.

Field Trip

Moses Lake

March 16


- 20,000 40,000 60,000 80,000 100,000 120,000 140,000

CA

SH

CO

ST

($/k

g)

POLYSILICON STACKED SUPPLY (2010, MT)

Market leaders are best positioned - Polysilicon

Sources: Sage Concepts; Company presentations; Equity Analyst Reports; REC Silicon Field data.

Field Trip

Moses Lake

March 16


Focus during the past 5 years has been on ramping up polysilicon production capacity as quickly as possible

2010-2013 will be challenging years for some companies

At times spot prices will move to the cash cost of that higher-cost manufacturer which fulfills that last kilogram of

demand

On the overall macro environment, a sharp contrast will develop between the “haves and have nots” as defined by:

secure market channels, cost, quality and value creation networks

Upstream companies will be looking at ways to create more value from their molecules

Those who chose their customers and suppliers well will absorb demand

REC Silicon is well positioned in terms of cost, product quality and reputation, customer channels and stability of

suppliers

Market summary - Polysilicon

REC

Silicon

REC

GROUPFloat Zone

Field Trip

Moses Lake

March 16


Float Zone

Float Zone (FZ) is a manufacturing method for fabricating very pure silicon; the concentration of impurities

(e.g. carbon, nitrogen & oxygen) are extremely low

FZ segregates impurities during the liquid-to-solid transition; liquid zone is moved through the material, and when

properly seeded, a single crystal occurs

Melt never comes into contact with anything but vacuum or inert gases; FZ has 3x less oxygen than CZ ingots

Field Trip

Moses Lake

March 16


Float Zone market opportunities

Power Devices

Home

Appliances

Computing

Existing

Applications

Field Trip

Moses Lake

March 16


IGBT for hybrid-electric vehicle converter

Hybrid-electric vehicle application

The fastest growing FZ application

1-3 million EV/HEV are expected to be

produced in 2010

CAGR expected to be 35-50% from 2010 to

2015

Most hybrid vehicles use a specific transistor

for the converter

FZ substrates are preferred for this specific

device

Field Trip

Moses Lake

March 16


Renewable energy applications

FZ wafer

Die

IGBT Modules

DC/AC, AC/DCconverter

IGBT valve in

700kW DC/AC

AC/DC converter

Offshore

Inland

IGBT valve in

600MW HVDC

substation

Field Trip

Moses Lake

March 16


FZ Polysilicon market growth projections

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2002 2003 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F 2015F

MT

Forecast for 2010-2015 based on MSI growth rates derived from SEMI (2009-2011), Sage Concepts (2009-2011) and Yole Développement (2010-2015).

Field Trip

Moses Lake

March 16


Market summary – Float Zone

Float Zone will continue to be an interesting market opportunity

Prices will come down for Low Power applications however this will increase application penetration and drive

unit volume growth

The ultra high purity segment will exhibit more price discipline as a result of competitive landscape

The future will belong to the lowest cost – highest purity 150-200mm rod producer

Strongest market drivers will be: Electric/Hybrid Electric vehicles, High Voltage DC transmission, Electronic

and Variable motor control, Alternative Energy conversion and transmission

REC

Silicon

REC

GROUPSilane

Field Trip

Moses Lake

March 16


Silane Layer

TFT-LCD is the largest and fastest

consumer of Silane

2000-2014 CAGR area growth

of 33%

LCD Monitor Production Expected to

reach all-time high in Q1 2010

Gen 6 and larger fabs expected to

average 87%+ fab utilization rate in

2010

Silane application – TFT-LCD

Field Trip

Moses Lake

March 16


0

1,000

2,000

3,000

4,000

5,000

6,000

2008 2009 2010 2011 2012 2013

MT

UPSIDE DEMAND OTHER SEMICONDUCTOR DISPLAY PV

Silane market demand

Sources: SEMI, DisplaySearch & REC internal model.

Field Trip

Moses Lake

March 16


- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

CA

SH

CO

ST

($/k

g)

SILANE STACKED SUPPLY (2010, MT)

Market leaders are best positioned - Silane

Field Trip

Moses Lake

March 16


Total available market will continue to grow for the next 3-4 years

Pricing will most likely come under pressure as existing producers defend market share

against newcomers

The lowest cost high quality producer with sufficient scale and reliability of operations will

prevail

Thin Film silicon based PV will most likely not be of significance in the next 3-4 years and

may not be a reliable market driver

Continued growth in TFT and Semiconductor is a likely scenario for the next 3-4 years

Value chain and business models will be challenged and changed over the next 2-3 years

Market summary - Silane

Field Trip

Moses Lake

March 16


The American Bison provided Plains Indians with an ideal platform to survive and expand: food,

shelter, weapons and barter goods. They maximized the asset.

Maximization of the platform

REC

Silicon

REC

GROUPTechnology update

Ron Reis

Field Trip

Moses Lake

March 16


Contents

Silane

Polysilicon

Granular polysilicon quality

Float Zone

The future

REC

Silicon

REC

GROUPSilane

Field Trip

Moses Lake

March 16


It all starts with the silane molecule

Signature Silane TM Enables all silicon deposition

applications

Purest silicon precursor

More than 25 years of experience with

silane technology

Technology is focusing on exploiting

this molecule and the manufacturing

technology for next generation products

and processes

Field Trip

Moses Lake

March 16


The Silane process

1) Hydrogenation (3 SiCl4 + 1 Si + 2 H2 = 4 SiCl3H)

2) Distillation (4SiCl3H = 3 SiCl4 + 1 SiH4)

Field Trip

Moses Lake

March 16


REC Silicon Silane experience

0

4000

8000

12000

16000

20000

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Silane MT/Yr

Silicon 1.0 –

Phase I

Silicon 1.0 -

Phase IISilicon 1.0 -

Debottleneck

Silicon 2.0

Silicon 3.0/4.0

Silicon 2.0 -

Debottleneck

Silicon 1.0 -

Debottleneck

Field Trip

Moses Lake

March 16


Silane leadership

UNIQUE TECHNOLOGY

– Enables all silicon deposition applications

– Flexibility supports different technologies

CONTINUOUS COST IMPROVEMENTS

– Economies of scale: plant size

– 4x increase from Silicon 1.0 to Silicon 4.0

MORE THAN 25 YEARS EXPERIENCE

– 25 years of uninterrupted experience in making and moving silane

SUPPLY RELIABILITY

– Four separate production plants, four loading buildings + over 350 transport modules

CONTINUOUS R&D FOCUS

– Two research sites with focused teams developing next generation manufacturing

which means lower capital and operating costs

REC

Silicon

REC

GROUPPolysilicon

Field Trip

Moses Lake

March 16


Two polysilicon technologies

Siemens Reactor

FBR Reactor

Silane

Cooling medium

Cooling medium

Reactor outletReactor inlet

Electrical contact

Polysilicon

rods

Field Trip

Moses Lake

March 16


Long experience with polysilicon >25 years

0

2000

4000

6000

8000

10000

12000

14000

Polysilicon MT/Yr

Silicon 1.0

Silicon 1.0

„97 Expansion

Silicon 2.0 -

Solar

FBR – Silicon 3.0

Added 07 Unit

Silicon 2.0 – Phase I

Silicon 2.0

Phase II

Field Trip

Moses Lake

March 16


Siemens Reactors:

Silane based proven technology

Produces ultra-pure polysilicon

Meets a specific set of market needs

Higher energy consumption

Batch process

Needs additional product finishing to be usable

Siemens Reactor Schematic Cooling medium

Cooling

medium

Reactor outletReactor inlet

Electrical contact

Polysilicon

rods

Initial polysilicon technology: Siemens

Cooling medium

Field Trip

Moses Lake

March 16


FBR = Energy efficiency

GOAL:

Support PV cost roadmap

PROVEN:

Lowest energy consumption

0

20

40

60

80

100

120

Siemens Kwh/kg FBR Kwh/kg

Energy Consumed

Field Trip

Moses Lake

March 16


FBR Technology:

Proprietary REC technology

Energy efficient – 10% of Siemens energy usage

Continuous production

Lower cost

Granular polysilicon is easy to handle

FBR Reactor Schematic

Silane

Fluid bed technology (FBR) advantages

Field Trip

Moses Lake

March 16


Fluid bed development history - timeline

1990s 2002 2003 2004 2005 2006 2007 2008 2009 2010 +

FBR Pilot Reactor

FBR Pilot 2 Reactor

SILICON 3.0 COMMERCIAL PROCESS

FBR Pilot 3 Reactor

FBR-B Next Generation Reactor

Pi

lo

tS

tu

di

es

GE

NE

RA

TI

ON

NE

XT

FBR-A Demonstration reactor

Field Trip

Moses Lake

March 16


Process development story

Field Trip

Moses Lake

March 16


FBR scale up: from demonstration to commercial reactor

Pilot Plant:

~150 MT/yr

Five years of demonstration reactor experience

Process optimization & control modeling

Customer qualification

Increased FBR reactor size and additional

number of reactors

16

me

ter

56

me

ter

FBR Plant:

10,500 MT/yr

REC

Silicon

REC

GROUPGranular polysilicon quality

Field Trip

Moses Lake

March 16


Quality model

Field Trip

Moses Lake

March 16


Quality improvement trend

10/24/09 11/03/09 11/13/09 11/23/09 12/03/09 12/13/09 12/23/09 01/02/10

Total Metals [ppbw]

Typical constituents: Fe, Cr and Ni Longer run lengths Process stabilization Steep process

operator learning curve Targeted PV Quality

Field Trip

Moses Lake

March 16


Quality results

Solar customer experience:

Silane purity means donors/acceptors are not of concern - verified

Silane/FBR process means carbon/oxygen are of no concern - verified

Blend tests: ratios from 50% - 100% FBR granules

Achieving normal cell efficiencies

Form factor influence – optimizing blend ratio for maximum melt parameters and

productivity

REC

Silicon

REC

GROUPFloat Zone

Field Trip

Moses Lake

March 16


Float Zone characteristics

SILANE BASED FLOAT ZONE

ULTRA PURE form of silicon

EXCELLENT RESISTIVITY:

Radial and Axial

LOWER TEMPERATURE DECOMPOSITION:

– Smaller grains = Greater toughness

= Better FZ performance

QUALITY CONTROL: Customer benefits

in first pass yields

Field Trip

Moses Lake

March 16


The Float Zone production process

Float Zone (FZ) is a manufacturing method for fabricating

very pure silicon

Extremely low concentration of impurities

(e.g. carbon, nitrogen & oxygen)

FZ takes advantage of the concentration change by

segregating impurities during the liquid-to-solid transition

Impurities in the molten region tend to stay in the

molten region, allowing for a very pure single

crystal region to remain

Melt never comes into contact w/ anything but vacuum

(or inert gases)

Good resistivity control by introducing gaseous

dopants in the growth chamber

Photo courtesy of University of Delaware &

The Prometheus Institute

REC

Silicon

REC

GROUPThe future

Field Trip

Moses Lake

March 16


Silane – precursors and derivatives

PRECURSORS AND DERIVATIVES: SiH4 chemistry enables specialty molecules

Mono and Di-Chlorosilane

– Specialty deposition molecule. In production

DiSilane

– Low temperature silicon deposition. In production

Trisilane

– Lower temp silicon deposition. Target 4Q 2010 production

PolySilane

– Liquids for silicon coating and printing. Research quantities produced.

Assessing semi-works for 2011

Field Trip

Moses Lake

March 16


Disilane pilot

Field Trip

Moses Lake

March 16


Next generation – FBR B

GOAL: Reduce manufacturing cost / targeted purity for high efficiency PV cells

APPROACH:

– Leveraging the company‟s R&D efforts and operational experience: knowledge from FBR-A

– Improve the primary cost drivers for first generation FBR technology: Capacity and CAPEX

– Continue to capitalize on silane‟s value

STATUS:

– Facility completed in 2009 and trials are underway

– Continuing improvement towards grid parity

Field Trip

Moses Lake

March 16


Intellectual assets

PATENT PORTFOLIO: 24 Patent Families / 73 individual filings

INNOVATION/TECHNOLOGY PIPELINE: Idea/Invention Disclosure

rate „09 vs. „08: +10%

REC

Silicon

REC

GROUPFinance update

Jan Johannessen

Field Trip

Moses Lake

March 16


RECORD ANNUAL REVENUES AND EBITDA

RECORD POLYSILICON PRODUCTION VOLUME +26%

POLYSILICON REVENUE GROWTH +9%

SILANE REVENUE GROWTH +40%

POLYSILICON ASP - 8%

SILANE ASP +14%

SOLID PERFORMANCES BY SILICON 1.0 AND 2.0

SILICON 3.0 VOLUMES RAMPING RAPIDLY

2009 Highlights

Field Trip

Moses Lake

March 16


Strong, profitable growth

$0

$100

$200

$300

$400

$500

$600

$700

2003 2004 2005 2006 2007 2008 2009

$0

$50

$100

$150

$200

$250

$300

$350

2003 2004 2005 2006 2007 2008 2009

REVENUE ($ Million) EBITDA ($ Million)

Field Trip

Moses Lake

March 16


Continuous growth in 2009

$0

$50

$100

$150

$200

Q1 Q2 Q3 Q4

$0

$25

$50

$75

$100

Q1 Q2 Q3 Q4

REVENUE ($ Millon) EBITDA ($ Million)

Field Trip

Moses Lake

March 16


Revenue segmentation - 2009

AMERICA7%

EUROPE49%

ASIA44%

SOLAR GRADE

49%

FZ-EG19%

SILANE27%

OFF SPEC

5%

BY GEOGRAPHY BY PRODUCT

Field Trip

Moses Lake

March 16


Energy consumption – FBR vs. Siemens

11

1

Relative Energy Cost Per Kg – Solar Grade

SIEMENSREC Silicon 1.0

FBRREC Silicon 3.0

Field Trip

Moses Lake

March 16


Strengthening cost position with FBR

1.00

0 %

20 %

40 %

60 %

80 %

100 %

120 %

2008 2009 2010E 2011E 2012E

Re

lative

So

lar

Gra

de

Po

ly C

ost P

er

Kg

FBRREC Silicon 3.0

SIEMENSREC Silicon 1.0

DRIVING DOWN POLYSILICON COST

Field Trip

Moses Lake

March 16


Capital expenditures

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2007 2008 2009 2010

OTHER

Si 3.0

Si 4.0

US

D M

ILL

ION

SEXPANSIONS MOSTLY COMPLETED

Field Trip

Moses Lake

March 16


REC Silicon 2010 Outlook

Polysilicon production of 12,000 MT

– Expect lower selling prices as a result of product

mix and pricing pressures in the market

Silane sales volume of 2,400 MT

– H1 volumes negatively affected by seasonality and

customer inventory adjustment

Ramp of Silicon 3.0 production volumes

Silicon 4.0 to start commercial production mid

2010 and ramp-up H2

Overall revenue and EBITDA growth

Field Trip

Moses Lake

March 16


On October 16th 2009 REC Silicon filed an application for the Advanced Energy Manufacturing Tax

Credit, which is part of the President Obama‟s economic stimulus package.

The foundation for the application, in addition to job creation, was significant energy savings made

possible by REC Silicon‟s proprietary FBR technology, which will significantly contribute to lowering

solar energy costs.

IRS notified the company in January that it was awarded a $154,896,429 credit under section 48C of

the Internal Revenue Code, the largest tax credit awarded under the program.

The credit will be used to offset future federal income taxes.

A Grant Receivable Asset of $154.9 million will be recorded on the balance sheet in Q1 2010.

Tax credit award

Field Trip

Moses Lake

March 16


Well positioned for continued growth

SOLAR GRADEFLOAT ZONE

ELEC GRADESILANE

MARKET & PRODUCT LEADERSHIP

LEADING COST POSITION

DIVERSIFIED GROWTH MARKETS

PROPRIETARY TECHNOLOGY

BRAND - CUSTOMERS -

DISTRIBUTION

REC

Silicon

REC

GROUPSummary remarks

Ole Enger

Field Trip

Moses Lake

March 16


Summary; REC Silicon - a solid platform for the future

The FBR technology is proven,

establishing REC Silicon with a

leading cost position in the industry

Delivered by a very experienced

and capable organization

– Further strengthening of the

organization continues

Creating a solid platform for the

future of the REC Group

Field Trip

Moses Lake

March 16


Large share of assets in ramp-up or

under construction not contributing

positively to EBITDA

Ramp up of the Singapore facility – a

significant step forward for REC Solar

Re-establishing the position of

REC Wafer in Norway

Market growth expected to return in

2010 – but overcapacity continues

Downward price pressure, but easing

compared to 2009

EBITDA in Q1 2010 significantly

below Q1 2009

Reminder; 2010 will be another „ramp-up‟ year for REC

Book value of PP&E

NOK million

2009 EBITDA contribution of NOK ~2,150 million from

producing assets. Negative 2009 EBITDA contribution of

NOK ~400 million from assets in ramp-up and under

construction

0

5,000

10,000

15,000

20,000

25,000

30,000

2009 2010 2011

Producing assets In ramp-up Under construction

REC

Silicon

REC

GROUPThank you

20100316 investors field trip

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