Presentation: REC Granular Polysilicon Technology

RENEWABLE ENERGY CORPORATION
GRANULAR
POLYSILICON
TECHNOLOGY
Tore Torvund, CEO REC Silicon
SNEC 2012 (Shanghai, China)
May 17, 2012

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 SNEC 2012 Silicon Materials Session held in Shanghai, China on May 17, 2012.
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.
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offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the
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2 2012 Copyright REC

REC Silicon: Global Reach
Moses Lake WA,
USA
REC Silicon headquarters
Manufacturing Facilities
Sales Offices
3 2012 Copyright REC
Butte MT, USA
Houston TX, USA
Tokyo, Japan
Shanghai, China
Taipei, Taiwan

Overview of Our Polysilicon Plant
� Our polysilicon plant consists of two separate plants working seamlessly
together
– Silane gas plant
– Polysilicon plant (Siemens and FBR reactor plant)
4 2012 Copyright REC
SILANE GAS PLANT
POLYSILICON PLANT

Our Operational Flexibility & Redundancy
5 2012 Copyright REC
Silane Loading
Silicon II
Silane
Silane gas to TFT,
Semi and Solar
Butte Moses Lake
Siemens
Polysilicon to Solar
and Semi
Silicon I
Silane
Silicon III
Silane
Silicon IV
Silane
FBR Silane Loading
Solar grade Silane gas to TFT ,
Semi and Solar

FBR: Technology for
a Sustainable Future
RIGHT HERE AT REC
REC Silicon production plant, Moses Lake WA, USA

REC Fluidized Bed Technology (FBR)
� Reactors
– Vertical Reactors: High flow rates that allow
fluidization
– Fluidization: Granules balanced by gas flow
friction, improved heat transfer
– YIELD: High yield with proprietary silane
process
� Significant energy savings
– Continuous vs. Batch Process
– Hot Wall vs. Cold Wall Design
� Demonstrated volume production
– REC has invested over 10 years of research
in Silane-based fluid bed deposition
7 2012 Copyright REC
Silane
+
H2
Effluent
Gas

Consumption KWh/Kg Optimized Siemens vs. FBR
* GT SDR-400 Commercial field data, as of June 2011
** FBR Actual Q1 2012
8 2012 Copyright REC
CVD ELECTRICITY CONSUMPTION
45 KWh/kg
4.1 KWh/kg
100% 9%
Best in Class TCS Siemens* REC FBR**

REC Silicon FBR Cost Breakdown
9 2012 Copyright REC
Other Mfg
Costs
26%
Electricity
Silane
4%
Manufacturing
Labor &
Support
32%
Electricity
FBR
1%
MGS
37%

Cash cost of USD 12.5/kg - Leading cost Position
among Polysilicon Companies
� FBR production target of
15,000 MT in 2012, 40 percent
above design capacity
10 2012 Copyright REC
Silicon – FBR
USD/kg
42
4
16
23
Q3’10
-39%
26
4
8
14
Q4’11
-13%
SG&A and R&D
Depreciation
Cash production cost
23
3
7
12.5
Q1’12
3
7

Significant Growth in REC’s FBR Capacity
MT
25 000
20 000
15 000
10 000
5 000
0
11 2012 REC - Strictly Confidential
6 000
REC Silicon Production Capacity by Technology
6 300
7 500
13 000
19 000
21 500
FBR
70%
2007 2008 2009 2010 2011 2012
FBR
Siemens

FBR Granular Increases Process Efficiency for
Wafer Manufacturers
� Customers
– About 20 different customers are currently
using our Granular products
– Users have quickly built a strong preference
for Granular material
� Cost savings
– Customers confirm significant cost savings
achieved by using granular material (blended
with chunk)
– Enables recharge (i.e. replenishing the melt
as the ingot is pulled)
– Maximizes initial crucible charge weight
– Enables top-off (i.e. adding polysilicon to the
crucible after the initial melt to raise the
molten silicon level towards the top of the
crucible)
12 2012 Copyright REC
Use of Granular in ingot making process
The Granular form factor improves productivity
used together with chunk polysilicon by
increasing crucible charge weight
� Increased packing density
� Enables top-off and recharge
� Easier to handle

FBR Granular Significantly Increases Productivity
Blend
100%
Siemens
50%
Siemens
50%
Granular
13 2012 Copyright REC
Filling
Time
48.5
mins.
28.5
mins.
Improvement vs.
100% Siemens
Weight
Improvement vs.
100% Siemens
N/A N/A 63.8 kg N/A N/A
20.0
mins.
40% improvement
in filling time
Note: Same 60 kg. crucible used for all tests. Crucible filled to top, level with crucible edge in all tests.
41.2% 82.5 kg 18.7 kg 29.4%
30% increase in
charge weight

Future
Development
RIGHT HERE AT REC
REC Silicon materials

P I L O T S T U D I E S
Fluid Bed Development History – Timeline
1990s 2004 2005 2006 2007 2008 2009 2010 2011 2012
FBR Pilot
Reactors 1, 2 & 3
- Feasibility
Modeling/Validation/Operability
15 2012 REC - Strictly Confidential
C O M M E R C I A L
FBR-B Next Generation Reactor
- Started-up 3Q 2009
FBR-A Demonstration Reactor
- Process Control ↔ Key Controls
- Design of Experiments ↔ Process Optimization
- Design Validation ↔ Scale Up
- Customer Qualification
Plant 3.0 Commercial Process
- Design ↔ Engineering ↔ Construction
- Started-up 4Q 2008
FBR-B Next Generation Reactor
- Proof of Enhanced Quality &
Operability at Reduced Cost
Implementation of
FBR-B Developments
Plant 3.0 Commercial Process
Continual Process Improvement
- 15,000 MT/yr
N E X T G E N E R A T I O N

Polysilicon Supply, Demand & Spot Prices
MT
500 000
450 000
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0
16 2012 Copyright REC
2011 2012 2013 2014 2015 2016
Polysilicon Production Capacity (All Companies)
Capacity Top 5 Companies
Semi Demand
Semi + PV Demand
Top 5 Companies: GCL, OCI, HSC, WCH & REC
Source: iSuppli PV Integrated Market Tracker (Q1 2012)
$/kg
80
70
60
50
40
30
20
Jan
Apr
7/4/2011
7/25/2011
8/15/2011
9/5/2011
9/26/2011
10/17/2011
11/7/2011
11/28/2011
2011 2012
PV Insights Bloomberg
Data as of April 25, 2012.
Source: Bloomberg New Energy Finance & PV Insights.
12/19/2011
1/9/2012
1/30/2012
2/20/2012
3/12/2012
4/2/2012
24,64
24,48
4/23/2012

Only ~20,000 MT FBR Polysilicon Available
250000
200000
150000
100000
50000
0
17 2012 Copyright REC
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Si V
Market opportunity for
flowable polysilicon
Si VI
Si VII
Installed FBR Cpacity Potential Market for FBR Poly (Assuming 50/50 blend ratio)

China is the Main Market for Polysilicon to the Solar
Wafer Market
Japan
7 %
Korea
14 %
18 2012 Copyright REC
Polysilicon Production
Source: Solarbuzz
Germany
15 %
USA
24 %
China
40 %
Other
5 %
USA
3 %
Solar Wafer Production
Germany
3 %
Japan
7 %
Taiwan
6 %
China
76 %

FBR - A Disruptive Polysilicon Technology
19 2012 Copyright REC
PRELIMENARY ESTIMATES
Current FBR cash cost vs China FBR cash cost (USD/kg)*
12,5
Q1 2012
cash cost
MGS
Manufacturing
labor &
support
*) Based on high level preliminary studies
Other
7,9
China FBR
Cash cost*

FBR Capex – Competitive with Siemens
20 2012 Copyright REC
107,0
Current FBR Optimized
capex/kg plant design
China
location
savings
50,0
China FBR
Capex/kg*
PRELIMENARY ESTIMATES
Current FBR capex/kg vs China FBR capex/kg (USD/kg)*
*) Based on high level preliminary studies

FBR Cost Per Kg* Development
*Blended cost per kg for all quality grade polysilicon
21 2012 Copyright REC
USD/kg
35
30
25
20
15
10
5
0
32,9
12,9
20,0
Q1 2010
25,9
10,0
15,9
19,1
6,6
12,5
Q1 2011 Q1 2012
11,3
3,3
7,9
FBR China
PRELIMENARY
ESTIMATES
Deprication
Cash cost

The STAR Center
� Silicon Technologies Applications Research Center
– Location: Shangyu, Zhejiang Province
– In partnership with Zhejiang Jingsheng M&E Engineering Co. Ltd.
– Phase 1 scope: Solar Grade CZ puller/s, analytical, FIBC transport, de-dusting
& recharge systems
– Operational by Q4 2012
22 2012 Copyright REC

REC Silicon to Launch an Applications
Center in China
� Aligns REC to market-driven requirements
� Assists in market acceptance of our
products
� We become a resource not just a source
� A localized customer support & application
facility
– Sample Activities:
– Material performance testing
– Customer training & interaction on product
handling, packing, blend, safety, etc.
– Product development
– New account qualification
23 2012 Copyright REC

REC Position on a possible trade dispute between
China and the US
� REC Silicon believes that tariffs are NOT in the best interest of the
global solar industry
– Tariffs stifle innovation/add costs to a development industry that needs to
reduce costs to compete with traditional power and grow
� REC Silicon opposes a trade war between the US and China
– Escalation/retaliatory tariffs damaging to all industry participants
� The May 17, US Department of Commerce AD tariff is provisional only
(final decision to be made late 2012)
– REC Silicon will continue to work together with other members of the solar
industry in the US and China and with the US government with a view to
convincing the decision makers in the US to “see sense” and ensure that the
final tariff decision imposes no or negligible tariffs only
24 2012 Copyright REC

Summary: Granular Polysilicon
� REC Silicon is technology and cash
cost leader
– World-class supplier and by far the largest producer
of Granular Polysilicon – at the lowest cost
� Customers Benefit from using
Granular
– Granular Polysilicon helps customers increase
productivity and reduce Total Cost of Processes and
Production
� We are a committed supplier of
Granular Products
– Have increased capacity to 15,000MT to deliver to a
growing market
– Developing Silicon research center in Shangyu
– Driving toward electronic grade quality
25 2012 Copyright REC

RENEWABLE ENERGY CORPORATION
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