REC Silicon ASA

Good morning. My name is Kurt Levins. I'm the CEO of RAC Silicon. And with me is Jack Yoon, the CFO of RAC Silicon. Welcome to the second quarter 2025 interim results presentation. We're going to go through some highlights and updates, as well as the financial review. Discussion of the strategic direction activities that we've been undertaking. And then finally, a summary of where we're at. We made significant progress in cost reduction activities in the quarter relative to the prior quarter. We had some benefits of one-off effects on our event dock. that we will discuss subsequent that led to a positive EBITDA of 4.9 million. Subsequent to quarter end, Anchor AS completed voluntary offer for shares and launched a mandatory share offer. Additional financing was received and is still needed. Additionally, trade actions and concern around the market effects of this have created forecast and demand uncertainty for our silicon gases. Silicon gas shipments are in a range that we have settled in for the last three quarters. As I stated, we're still having trade-related effects due to tariffs and trade actions on our products, however, also on the goods which require our products. Expected opportunities for volume and SPAC expansion increases are still being delayed or suspended. Semi-memory market demand is still soft compared to prior periods and affecting underlying demand, particularly for silo. On the other hand, our other silicon gas shipments continue to regain volume and grow in terms of sequential quarters on quarters. Note the other income effect due to the modification of a lease agreement. This is what was giving us a positive EBITDA for the quarter and for the first half. Find this in the Moses-like segment. This is part of our ongoing cost reduction program. Our Siemens polysilicon inventory clearance is as planned and we're still expecting that we will continue to move the product through the end of this year. Silicon gas sales volume did increase, but again, as I'd stated, it's within the range that we have been settled into the past few quarters. Slightly lower ASPs due to mixed effect. And plan maintenance in the quarter contributed to a lower EBITDA from our BYU-Dip operation. We finished the quarter with $8.3 million. And I want to note that our interest payment items are at $7.2 million within the quarter. We also have noted that, as we stated, we did receive $10 million in proceeds from our borrowing activities. Subsequent to the quarter end, we have received an additional $13 million in short-term loans from Hanwha International. We have continued to monitor slower than expected project development, execution, and startup of reshoring activities. Trade action uncertainty, policy uncertainty, and market uncertainty all are affecting our expected volume growth opportunities. While we see fewer actualization of PV cell fabs, we have noted more semiconductor fab announcements. Our cost reduction efforts in Moses Lake continue and material progress was made over Q1. We expect to continue incremental reductions through the remainder of the year as we finish and negotiate prior commitments. Our butte operation has also continued to optimize for cost reduction and has achieved cost reduction targets over our internal targets, particularly on manufacturing overhead. We need to redouble our efforts in improving our silicon gas sales in spite of the challenging market. This is especially important given our current distress situation. As a result of passing the 33.3% threshold, Anchor AS launched a mandatory offer. Mandatory offer expires on 29 August. As stated, we will need additional financing. This includes the possibility of further short-term loans. We are focused now on the disposal of non-core assets, targeting completion before the end of this year. We are complying with the request for investigation submitted to the Norwegian District Court. And we are complying with the process requirements and associated requests for information on all legal processes. We expect for the sequential quarter on quarter cost reduction to continue through the end of this year. For Q3, we expect to be in the same range with silicon gas shipments, slight possibility for small increment improvements. Global trade and market uncertainty still continue to impact timing on expansions and our sales growth. And our short and long-term financing options are still in progress. Right now, the most important thing for the company is to focus on the basics of being able to increase our revenues in a challenging environment and control our costs in spite of having higher commitment levels prior to us making the decision to shut down Polysilicon at Moses Lake. This is what we will continue to do through the end of the year to ensure that our best chances for setting ourselves up to be in a sustainable situation is by having a strong revenue base and having strong cost reduction. Thank you. and we will be back for the next quarter in November 6th.

You can take some questions. Moving into questions. So recently the minority shareholders replaced the board of RAC Silicon and partly due to the perceived weak corporate governance and the principle of equal treatment of all shareholders. What does management of RAC Silicon plan to do differently going forward?

We will continue to communicate to the market as needed. We will continue to take actions which are in the interest of all of the shareholders, regardless of majority, minority, or otherwise. As we have done prior, and we will continue to do,