rec_q2_2015_solar_market_insight

China and Japan are forecasted to
0 2012 2013 2014 2015E 2016E 2017E 2018E Source: REC forecast
account for nearly 50% of global installations in 2015, followed by the U.S. as the third biggest market
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REC holds a strong position in Germany; 6.3% market share in H1 2015
39%
Germany 26%
17%
21%
Q1 2015
Q2 2015
2015E
2016E
Solar industry*
* Source: IHS Integrated PV Market Tracker Q2 2015, REC
Successful balance of declining Europe by
booming U.S., demonstrating REC’s excellent global presence
Based on Altman-Z score by Bloomberg
Q2 2014
Q3 2014
SECOND QUARTER 2015
AUGUST 3, 2015
Major highlights from Q2 2015
Module revenues of USD 168m, up 12% Significant shipment volumes of 130 MW
176 149
Revenues (USD m)
5
REC regional sales split vs. solar industry – Global
Geographical sales split of MW
8% 8% 7% 2% 1% 17% 19% 12% 13% 18% 15% 11%
3% 1% 12%
10%
25%
22%
7%
16%
21% 39% 22% 27%
180 150
+12%
168
to U.S. based on succeeded major longterm supply agreements, up 44%
Increased solar footprint in APAC: 45 MW,
up 150%, due to shipments to Thailand
Europe: MIP expected to continue through 2016
Prosun will trigger a new investigation in EU, leading to an extension of MIP Facts:
Anti-dumping (AD) tariff was decided by EU in May 2013: between 37% and 68% (e.g.
Elkem (Bluestar Elkem Investment Co. Ltd.)
REC Solar Holdings AS (Norway)
REC Solar Holdings AS (Norway)
Elkem Solar (Norway)
* Simplified for better understanding
* Source: IHS Integrated PV Market Tracker Q2 2015
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REC sales and market development – Europe
Annual module installations Europe (GW)
11.3 9.0 7.8 9.7 8.6 1.1 5.3 1.3 5.9 1.5
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Global solar module demand expected to increase by ~30% in 2015
Annual Module Installations Globally (GW)
80 63 60 44.3 40 38.8 31.6 58 65 68
REC expects annual global module
For customers and partners of REC this means business as usual at REC, with added
strengths and new opportunities going forward.
Elkem looks forward to contribute to the development of the existing organization of REC
plus new floating application for renowned Peak Energy Series
Announcement of transaction closing: REC
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to join forces with Norway-based Elkem Group
Transaction update
Q4 2014
Q1 2015
Q2 2015
New Energy Finance, REC again confirmed as most financially stable solar panel manufacturer
Intersolar Award for new TwinPeak panel,
REC, however, will continue to be headquartered in Norway with operational
headquarters in Singapore, producing high-quality solar panels, with plans for further growth and expansion.
As of May 13, 2015, REC – the largest European brand of solar panels – is part of the
Elkem Group. Ambition is to establish a leading integrated PV player in a highly fragmented solar market.
6.9
4.3 2.0
2015E Residential
expected, due to storage opportunities for residential and commercial segments
2.8 2018E
2.3 2016E Commercial
2.5 2017E Utility-Scale
REC sales development Europe (MW)
135 112 89 53 139

REC will seek to penetrate new markets
within Africa region
Q2 2014
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Q3 2014
Q4 2014
Q1 2015
Q2 2015
REC country sales split vs. solar industry – Europe
and to invest in its further growth as a leading global brand in the solar industry.
As part of this, the division Elkem Solar will merge into REC for a further optimized solar
No CfD auction in the rest of 2015 ROC scheme for projects <5MW will close on April 1, 2016 – a year earlier Grandfathering under ROC removed Pre-accreditation to be removed for installations >50kW; increased uncertainty over FiT due to further reviews by DECC
Percentage of regional MW sales in Europe
11% 4% 1% 11% 1% 16% 13% 15% 21%
2%
38% 45%
46% 55% 67%
28% 6%
8%
Others
BeNl UK
72%
50%
38% 28% 17% 4% Q2 2014 Q3 2014 Q4 2014 REC
installations to reach around 58 GW in 2015, an increase of 30% from 2014
REC’s outlook for 2016 and 2017 is
20
slightly lower compared to expectations from IHS or BNEF due to lower forecasts for European markets
3
Transaction update – old vs. new corporate structure
old structure*
REC Solar ASA (Norway, Oslo Stock Exchange)