2022
Annual report

CONTENTS
Board of Directors
3
Letter from the CEO
4
Board of Directors’ report
6
Sustainability report
16
Board of Directors’ report on corporate governance
36
Financial statements index
43
Financial statements REC Silicon Group
44
Financial statements REC Silicon ASA
96
Auditor’s report
114

REC Silicon Annual Report 2022 3
BOARD OF DIRECTORS
VIVIAN BERTSEKA
Board Member of Transition Zero, Blue Layer. 
Previously Founding Partner & COO, Just 
Climate (2020-2022), and Investment Director, 
Generator IM Global Equity, (2015-2020) and 
Growth Equity (2011-2015).
MBA (distinction) from INSEAD, and Artium 
Baccalaureus in Applied Mathematics, Harvard 
University.
DONG KWAN KIM
Currently Chief Executive Officer of the 
Strategy Division at Hanwha Corp. and Hanwha 
Solutions since Jan 2020.Previously held 
multiple executive positions at Hanwha 
QCELLS Group.  
 
Artium Baccalaureus in Government,  
Harvard University.
TAE WON JUN
Currently Chief Strategy Officer of the Strategy 
Division at Hanwha Corp. and President at  
Hanwha Holdings since April 2019. Previously 
Executive Director for Morgan Stanley PE Asia 
(2016-2019),and Director, M&A at Hanwha 
Group (2012-2016). 
MBA, Wharton School, and Bachelor in Finance, 
Korea University.
DR. RENATE OBERHOFFER-FRITZ 
Currently Professor and Chair, Institute of 
Preventive Pediatrics, Faculty of Sports and 
Health Science, Technical University Munich  
and consultant for German Heart Center. 
MD, Ph.D, Technical University Munich.
ROBERTA BENEDETTI
Senior advisor within energy and renewables  
with more than 20 years of experience in the 
energy sector. Previously held multiple executive 
positions at Enel (1998-2006), E.ON (2006-
2016), and ANEV (2011-2016).
University of Florence, and exchange at Ryerson 
Polytechnic University.
Board of Directors

REC Silicon Annual Report 2022
4
Letter from the CEO
Letter from 
the CEO
There have been a lot of positive developments at REC Silicon this past year that have 
placed the company in a position to seize upon the market opportunities that exist for the 
company’s Signature Silane gas-based operations. These opportunities are fueled by major 
secular growth trends existing in Digitalization, Renewable Energy and the Energy 
Transition. For REC Silicon this is further enhanced by concerns around supply security and 
embedded competence that is driving major efforts towards re-shoring industries that 
where first developed and commercialized in the United States, such as Photovoltaics and 
Semiconductors. Along with underlying growth trends, the Investment Reduction Act, Chips 
Act and the Infrastructure Act all create clear pathways for us to run our current assets 
towards full utilization as well as expand in areas where we have strong and distinct 
positions. As the largest producer of Silane and High Purity Granular outside of China and 
the only one located in the United States, our entire production asset and product portfolio 
is uniquely positioned to translate these circumstances into further value for our 
shareholders. Simply put, we have the right assets, the right products at the right time and 
in the right place.
Support for the long-term success of the company was solidified in 
2022 as a result of the purchase by Hanwha Solutions and its affiliate 
Hanwha Corporation of Aker Horizon’s interest in REC Silicon along 
with an additional share offering from the company as Hanwha became 
the largest shareholder at 33.33%. REC Silicon’s Board of Directors 
also changed to the current Board comprised of Mr. Tae Won JUN as 
chair and Mr. Dong Kwan KIM as deputy chair both of whom are 
affiliated with Hanwha, along with Ms. Paraskevi (Vivian) Bertseka,  
Dr. Renate Oberhoffer-Fritz, and Ms. Roberta Benedetti as 
independent Board members. 
In 2022, REC Silicon announced the restart of the Moses Lake facility on 
the heels of offtake opportunities to sell the production from the facility 
to Hanwha. Favorable governmental initiatives such as the Inflation 
Reduction Act, which included SEMA has provided incentives to support 
the reshoring of the PV industry within the United States that will also 
greatly enhance REC Silicon’s current and future prospects at Moses Lake. 
Moreover, the CHIPS Act is also expected to positively contribute to the 
success at Butte as the Semiconductor industry continues its path 
towards reshoring to the United States as well. Additional improvement 
and expansion opportunities for high value products manufactured at the 
Butte facility, such as DCS, were identified and are now being implemented 
so that the Butte facility will continue to take advantage of market 
opportunities that are rapidly developing. 
Although the long-term prospects for REC Silicon have never been 
brighter, there has also been some short-term challenges facing the 
company. The second half of 2022 has been a disappointment from 
“Simply put, we have the right assets, 
the right products at the right time and 
in the right place. ”

REC Silicon Annual Report 2022 5
Letter from the CEO
revenue and EBITDA perspectives and was marred by market weakness in 
the semiconductor industry and cost challenges from inflationary 
pressures and other factors, particularly with respect to the cost of power 
in Butte. Nevertheless, the company is taking steps to mitigate these 
external factors and expects market and cost improvements for the 
coming year. 
I continue to believe that REC Silicon possesses the right assets with the 
right products at the right time and in the right place. We have worked hard 
to put in place the necessary stepping stones to allow us to accelerate to a 
highly successful and profitable future. Our prospects for the company are 
indeed “electric”!
Kurt Levens 
President and CEO

REC Silicon Annual Report 2022
6
Board of Directors’ report
Board of Directors’ report
2022 HIGHLIGHTS (COMPARED TO 2021)
>	 Revenues of $147.8M compared to $143.2M in 2021
>	 EBITDA of loss of ($34.9M) compared to gain of $7.7M in 2021
>	 Cash balance of $105.3M at December 31, 2022
	 •	 Cash decrease of $5.2M in 2022
	 •	 Cash outflows from operations of $42.1M
	 •	 Cash outflows from investing activities of $54.8M
	 •	 Cash inflows from financing activities of $98.8M
	 •	 Decrease effect on cash of changes in foreign exchange 
	 	 rates of $7.2M
>	 Silicon gas sales volumes of 2,718MT compared to 3,078MT  
in 2021
	 •	 11.7% decrease in sales volume 
	 •	 12.8% Increase in average silicon gas prices
>	 Total polysilicon sales volumes of 1,428MT compared to 1,636MT 	 	
	 in 2021
	 •	 Semiconductor grade polysilicon sales of 1,045MT compared to  
	 	 1,117MT in 2021
	 •	 Average semiconductor grade polysilicon price increase of 19.2% 
	 •	 Polysilicon inventory decrease of 53MT
>	 Investment in REC Silicon by Hanwha
	 •	 Private placement of equity completed January 19, 2022
	 •	 48.2 million shares issued (proceeds of NOK 964M)

REC Silicon Annual Report 2022 7
Board of Directors’ report
BUSINESS ACTIVITIES
REC Silicon ASA was established in Norway on December 3, 1996.  
The Company is headquartered in Lysaker, Norway.
REC Silicon is a global leader in silane-based, high-purity silicon 
materials, delivering high-purity polysilicon and silicon gases to the  
solar and electronics industries.
REC Silicon operates manufacturing facilities in Moses Lake, 
Washington and Butte, Montana in the USA. REC Silicon’s subsidiaries 
include: REC Silicon Inc., REC Solar Grade Silicon LLC, and REC Advanced 
Silicon Materials LLC in the United States. REC Silicon’s sales and 
marketing activities for sales of solar grade polysilicon, semiconductor 
grade silicon and silicon gases are carried out in China, Japan, Korea, 
Taiwan, and in the United States. The Group’s investment in the Yulin JV 
is held by REC Silicon Pte. Ltd. in Singapore.
STRATEGY AND OBJECTIVES
REC Silicon’s strategy is to maintain its position as a technological 
innovator in the silicon materials industry.
REC Silicon intends to improve its competitive position and:
•	 Successfully restart FBR in Moses Lake
•	 Maintain financial flexibility
•	 Optimize efficiency of utilized assets
•	 Optimize semiconductor segment product offerings
•	 Control inventory by flexing production to match sales and  
business conditions
•	 Focus on cost control
•	 Focus on continued quality improvements
2022 SUMMARY
 
FINANCIAL HIGHLIGHTS
Key Financials - REC Silicon Group
(USD IN MILLION)
2022
2021
Revenues 
147.8
143.2
EBITDA 
-34.9
7.7
EBITDA margin 
-23.6%
5.4%
EBIT excluding impairment charges 
-58.0
-20.5
Impairment charges 
-0.3
-0.3
EBIT 
-58.3
-20.8
EBIT margin 
-39.4%
-14.5%
Profit/loss from continuing operations before tax 
-87.0
-43.5
Profit/loss from continuing operations 
-87.0
-43.5
Profit/loss from discontinued operations, net of tax 
0.1
13.4
Earnings per share, basic and diluted (USD) 
-0.21
-0.12
Polysilicon production in MT (Siemens and granular) 
1,375
1,225
Polysilicon sales in MT (Siemens and granular) 
1,428
1,636
Silicon gas sales in MT 
2,718
3,078
Revenues
Total revenues increased by 3.3 percent from USD 143.2 million in 2021 
to USD 147.8 million during 2022. This increase is primarily due to 
increased sales prices for semiconductor grade polysilicon. Nearly all 
revenues reported are in the Semiconductor Materials segment and 
increased by 3.6 percent from USD 142.8 million in 2021 to USD 147.4 
million in 2022.

REC Silicon Annual Report 2022
8
Operations
During 2022 all polysilicon produced by REC Silicon was manufactured 
in the Semiconductor Materials segment from its plant in Butte, 
Montana. The Company is executing a plan to realize FBR production 
from its plant in Moses Lake in Q4 of 2023.
Total polysilicon production increased by 151MT (12.3 percent) to 
1,375MT in 2022 compared to 1,225MT in 2021. All production in 
2022 and 2021 was from the semiconductor materials segment. 
 Total polysilicon inventories declined by 53MT in 2022.
EARNINGS 
Earnings Before Financial Items and Income taxes (EBIT) for 2022 was a 
loss of USD 58.3 million. This represents an increased loss compared to 
an EBIT loss of USD 20.8 million in 2021.
EBITDA for 2022 was a loss of USD 34.9 million compared to an EBITDA 
of USD 7.7 million in 2021. The decrease in EBITDA compared to 2021 
is the result of higher operating costs, specifically energy and raw 
materials. EBITDA contributed by the Semiconductor Materials segment 
declined by USD 27.1 million to USD 6.3 million in 2022 due primarily 
increased operating costs. EBITDA contributed by the Solar Materials 
segment decreased by USD 14.3 million due to restart activities and 
inflation. In Other and Eliminations, net operating costs increased by 
USD 1.3 million due to restart activities and inflation.
TECHNOLOGY, RESEARCH, AND DEVELOPMENT
REC Silicon’s long-term competitive position is based on cost efficiency 
and industry leading product performance. REC Silicon’s research and 
technology development activities are designed to enhance quality, 
improve efficiency, and reduce production costs of our products to add 
value to our customers and further enhance our competitive position.
However, research and development efforts have been limited due to the 
shutdown of the FBR facility in Moses Lake. During 2022, research and 
development efforts were focused on maintaining minimum research lab 
operations to support the silicon gas and semiconductor grade 
polysilicon businesses.
Cash expenditures for research and development were USD 1.5 million 
in 2022 compared to USD 1.3 million in 2021. Total expenditures 
including depreciation were USD 1.9 million in 2022 and USD 1.7 million 
in 2021.
SEGMENT INFORMATION
SEMICONDUCTOR MATERIALS SEGMENT
REC Silicon manufactures polysilicon and silicon gases for 
semiconductor markets from its manufacturing facility in Butte, 
Montana. This facility is the world’s largest supplier of silicon gases for 
semiconductor, flat panel display, and solar applications. The facility 
uses a silane-based Siemens polysilicon processing technology to 
produce the highest quality (FZ) polysilicon for use in the semiconductor 
industry. The Butte plant has a capacity of approximately 5,240MT of 
silicon gas loading and 1,600MT electronic grade polysilicon production.
Key financials - Semiconductor Materials
(USD IN MILLION)
2022
2021
Revenues 
147.4
142.8
EBITDA contribution 
6.3
33.4
Contribution margin 
4.3%
23.4%
Polysilicon production in MT (Siemens) 
1,375
1,225
Polysilicon sales in MT (Siemens) 
1,428
1,570
Silicon gas sales in MT 
2,718
3,078
Markets
Markets for semiconductor grade polysilicon remained strong in 2022. 
Large diameter wafer demand for memory and advanced logic devices 
saw growth during the year as higher grade products remained in 
demand, even as the market started working towards year-end inventory 
control. Silicon wafer growth started to slow as downstream demand 
outlook weakened. Large diameter wafer capacity remained stable as 
the demand for smaller diameters softened. 
Silicon gases demand for semiconductor applications remained high for 
most of the year, specifically in advanced semiconductor devices. The 
demand for silicon gases in flat panel display applications declined 
throughout the second half of 2022 as end users reduced factory 
utilization and focused on inventory control. Global shipping delays and 
port congestion issues adversely affected sales during the year. A softer 
forecast with regards to solar PV for the first part of 2023 contributed 
to a lower shipment profile by the end of the year. The China market 
concentrated efforts on supply inside the country to combat inventory 
concerns and global logistics. Weakening demand in memory devices 
also added to the reduction in silicon gas sales as the year progressed. 
Market sentiment and concern focused on the potential of a global 
slowdown and recession leading end users to adjust order points to 
lower levels. However, by the end of the year, there were improvements 
in shipping times and freight costs.
Board of Directors’ report

REC Silicon Annual Report 2022 9
Financial Performance
In 2022, revenues for the Semiconductor Materials segment were USD 
147.4 million compared to USD 142.8 million in 2021; an increase of 3.2 
percent.
Revenues from polysilicon sales increased by 11.2 percent in 2022 
compared to 2021. Total polysilicon sales volumes decreased by 9.0 
percent from 1,570MT in 2021 to 1,428MT in 2022. The underlying 
sales volumes of semiconductor grade polysilicon were 1,045MT during 
2022 compared to 1,117MT during 2021. Average prices realized for 
semiconductor grade polysilicon increased by 19.2 percent.
Revenues from silicon gas sales decreased by 0.4% in 2022 compared 
to 2021. Silicon gas sales volumes were 2,718MT, a 11.7 percent 
decrease compared to 3,078MT in 2021. Average annual prices for 
silicon gas increased by 12.8 percent. 
Total polysilicon production in the Semiconductor Materials segment 
increased by 151MT to 1,375MT in 2022 compared to 1,225MT in 
2021. The underlying production volumes of semiconductor grade 
polysilicon increased by 221MT to 993MT for 2022. Inventories of 
polysilicon in the Semiconductor Materials segment decreased by 53MT 
in 2022 as the company took advantage of additional sales.
The Semiconductor Materials segment contributed USD 6.3 million of 
income to EBITDA during 2022. This compares to an EBITDA of USD 
33.4 million in 2021.
Income contributed by the Semiconductor Materials segment 
represents revenues less production costs for products sold during the 
period and excludes depreciation, amortization, impairment, and selling, 
general, and administrative expenses.
SOLAR MATERIALS SEGMENT
REC Silicon has the capability to manufacture polysilicon for the  
solar energy markets from its manufacturing facility in Moses Lake, 
Washington.
Key financials - Solar Materials 
(USD IN MILLION)
2022
2021
Revenues 
0.2
0.1
EBITDA contribution 
-19.9
-5.7
Contribution margin 
NA
NA
Polysilicon production in MT (Siemens and granular) 
0
0
Polysilicon sales in MT (Siemens and granular) 
0
65
Impacts of Chinese tariffs on polysilicon manufactured in the United 
States, uncertain market conditions, and reduced demand for the 
Company’s solar grade polysilicon resulted in the shutdown of the  
FBR polysilicon plant in Moses Lake, Washington in 2019. 
The Company is executing a plan to realize FBR production from its  
plant in Moses Lake in Q4 of 2023. Current activities include execution 
of engineering, procurement, and construction for FBR upgrades.  
The company is targeting a ramp to 50 percent operation during Q2 
2024 and a ramp to 100 percent operation during Q4 2024.  
(see Risk Factors below).
Markets
During 2022, demand for PV installations globally were strong. Europe 
continued to see increased imports for PV modules as concerns around 
energy supply and high natural gas pricing drove demand. However, the 
United States saw a decline in installations as impacts of the Uyghurs 
Forced Labor Prevention Act were felt in Q4. China saw record exports 
Board of Directors’ report
Sales Volumes (MT)
Silicon Gas Sales
0
200
400
600
800
1,000
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Q2
2021
Q1
2021
Sales Volumes (MT)
Semiconductor Polysilicon Sales
0
100
200
300
400
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Q2
2021
Q1
2021

REC Silicon Annual Report 2022
10
of modules in 2022 as regions like Europe and South America balanced 
out lower importing countries like the United States and India. Globally 
PV installations are expected to increase year on year. Polysilicon supply 
in China continued to increase as new capacity came online. Overall, the 
market saw monthly supply of polysilicon increase past 30GW and then 
nearing 40GW by the end of the year. Factory utilizations for wafers 
declined as the year ended in anticipation of lower polysilicon prices 
ahead of Lunar New Year and inventory draw down. PV Insights showed 
polysilicon prices started the year at USD 31.8/kg then slowly increased 
throughout the year until the end of the 4th quarter as new capacity was 
released. Polysilicon finished the year near USD 33.6/kg, an increase of 
approximately 5.8 percent from the end of 2021. Several countries are 
taking a stronger position for developing a global supply chain that is not 
reliant on one region. 
Financial Performance
Revenues for the Solar Materials segment were USD 0.2 million during 
2022 compared to USD 0.1 million in 2021.
Due to the shutdown of the FBR facility in May of 2019, there was no 
FBR production in 2022 or 2021. The Company is executing a plan to 
realize ultrahigh purity FBR production from its plant in Moses Lake in 
Q4 of 2023. Current activities include execution of engineering, 
procurement, and construction for FBR upgrades. The company is 
targeting a ramp to 50 percent operation during Q2 2024 and a ramp to 
100 percent operation during Q4 2024.
The Solar Materials segment contributed a loss of USD 19.9 million to 
the Company’s EBITDA during 2022. This compares to a loss of USD 5.7 
million in 2021. The increased expenses are related to restart activities.
The loss contributed by the Solar Materials segment represents costs 
associated with restart activities and excludes depreciation, 
amortization, impairment, and selling, general, and administrative 
expenses.
OTHER AND ELIMINATIONS
Other includes general administrative and sales activities in support  
of the manufacturing facilities in the United States and the Company’s 
headquarters in Norway. It also includes costs associated with the 
Company’s representative offices in Taiwan, Korea, China, and the  
United States.
Key financials - Other and Eliminations 
(USD IN MILLION)
2022
2021
Revenues 
0.2
0.2
EBITDA contribution 
-21.3
-20.0
Silicon gas sales in MT 
0
0
Other and Eliminations EBITDA decreased to USD 21.3 million during 
2022 compared to USD 20.0 million in 2021. Costs exclude depreciation, 
amortization and impairment. 
INVESTMENT (YULIN JV)
The Group has an investment in China; Shaanxi Non-Ferrous Tian Hong 
REC Silicon Materials Co., Ltd. (Yulin JV). REC Silicon’s ownership is 15 
percent of the Yulin JV. The Company has designated the investment in 
the Yulin JV as an equity security at fair value through profit/loss 
(FVTPL).
REC Silicon’s investment in the Yulin JV has been reported in the 
statement of financial position at a value of zero which is unchanged 
from the prior period.
During the Group’s review of impairment indicators, no impairment 
indicators were identified that might give rise to a change in the 
valuation of the Company’s investment in the Yulin JV.
REC Silicon made the final equity settlement payment of USD 4.7 million 
during 2022. This was done after the successful completion of 
performance testing specified in the Technology Transfer Agreement 
(TTA).
Board of Directors’ report
USD / kg
Polysilicon Spot Price Development
2021
2022
 2015
* PV Insights – Mono-crystalline polysilicon prices
5
10
15
20
25
30
35
40
45

REC Silicon Annual Report 2022 11
FINANCIAL ITEMS
Financial items - REC Silicon Group 
(USD IN MILLION)
2022
2021
Financial income 
1.9 
0.1 
Interest expenses on borrowings 
-13.4 
-13.6 
Expensing of up-front fees and costs 
-0.5 
-0.4 
Interest expense on leases 
-8.6 
-8.8 
Capitalized borrowing cost 
3.0 
0.4 
Net change in fair value of financial equity 
investment through profit and loss 
0.0 
0.0 
Other financial expenses 
-1.4 
-1.3 
Net financial expenses 
-20.9 
-23.6 
Net currency gains/losses 
-9.7 
0.8 
Net financial items 
-28.7 
-22.7 
Net financial items were an expense of USD 28.7 million in 2022 
compared to an expense of USD 22.7 million in 2021.
Net currency gains/losses are primarily related to the impact of 
exchange rate fluctuations on liabilities and cash deposits denominated 
in NOK. In addition, net currency gains/losses include fluctuations 
between transaction currencies and the USD which is the reporting 
currency for the group.
Interest expenses on borrowings were USD 13.4 million in 2022 
compared to USD 13.6 million in 2021. Interest expense on borrowings 
includes interest on the Company’s senior secured bonds for both years 
presented. In addition, it includes interest expense on a note payable 
associated with the settlement of the property tax dispute with Grant 
County, Washington. (See note 17 to the consolidated financial 
statements).
Interest expense on leases was USD 8.6 million in 2022 compared to 
USD 8.8 million in 2021. This decrease can be attributed to increased 
principal lease payments (See Note 7 to the consolidated financial 
statements).
Capitalized borrowing costs are related to capitalized interest 
associated with long term capital projects. Interest is capitalized at the 
company’s external borrowing rate of 11.5 percent.
The remaining expense can be attributed to interest on asset retirement 
obligations and interest on the pension obligation.
INCOME TAX
The losses before tax from continuing operations of USD 87.0 million in 
2022 and USD 43.5 million in 2021 resulted in no effective tax impact 
since it is offset by changes in unrecognized deferred tax assets. These 
losses represent an increase in the Company’s unrecognized deferred 
tax asset. The losses will continue to be available to offset taxable 
income during future periods. 
See note 18 to the consolidated financial statements.
PROFIT AND LOSS
The loss from total operations was USD 86.8 million in 2022 compared 
to USD 30.1 million in 2021. 
CASH FLOW
Net cash outflows from operating activities were USD 42.1 million in 
2022 compared to USD 14.6 million in 2021. Cash outflows included 
USD 22 million of interest payments and a USD 1.6 million contribution 
to the defined benefit pension plan in the United States.
Net cash outflows from investing activities were USD 54.8 million in 
2022 compared to cash outflows of USD 6.8 million in 2021. Payments 
of capital expenditures were USD 55.9 million in 2022 and were 
primarily associated with FBR modifications which will enable the 
restart of Moses Lake production in Q4 of 2023. Other capital spending 
included the Dichlorosilane (DCS) gas expansion project in the Butte 
production facility. The DCS expansion will result in an increase in DCS 
production capacity of approximately 200MT per year. (see risks and 
uncertainties).
Capital expenditures also include cost savings and improvement 
initiatives, routine replacement of production equipment, and capital 
necessary to maintain safe and reliable operations.
In addition, cash inflows included USD 1.1 million in 2022 and USD 1.4 
million in 2021 due to the maturity of municipal bonds held by the 
Company.
Cash inflows from financing activities were USD 98.8 million in 2022 
and included USD 109.5 million from the equity raise offset by 
payments of lease liabilities and payments of borrowings, which included 
payment of the indemnification loan. Cash outflows from financing 
activities in 2021 were USD 3.0 million and included payments of USD 
0.9 million on the property tax note and USD 2.1 million payments of 
long-term lease liabilities.
There was also a negative effect of USD 7.2 million in 2022 due to cash 
balances held in NOK.
In total, cash balances decreased by USD 5.2 million in 2022 to USD 
105.3 million at December 31, 2022.
Board of Directors’ report

REC Silicon Annual Report 2022
12
FINANCIAL POSITION
Shareholders’ equity increased to USD 60.4 million (18.9 percent equity 
ratio) at December 31, 2022 compared to USD 33.3 million (11.3 
percent equity ratio) at December 31, 2021. 
This increase was primarily the result of the equity raise of USD 109.5 
million, a remeasurement of the pension of USD 3.5 million and USD 0.9 
million of currency translation effects taken to equity. These were offset 
by a loss from total operations of USD 86.8 million.
Net debt decreased by USD 8.0 million to USD 78.5 million at December 
31, 2022 from USD 86.4 million at December 31, 2021. This decrease 
was primarily the result of the decrease in cash balances of USD 5.2 
million discussed above. This was offset by decreases in debt including 
the payment of the indemnification loan of USD 10.7 million and 
payment of USD 1.0 million in the Grant County WA property tax note. 
Lease liabilities decreased by USD 1.9 million. Additionally, USD 0.5 
million of loan fees were amortized in 2022.
Net debt includes unamortized loan fees. Excluding unamortized 
capitalized borrowing costs, nominal net debt was USD 78.6 million at 
December 31, 2022 which represents a decrease of USD 8.5 million 
from USD 87.1 million at December 31, 2021 (See note 17 to the 
consolidated financial statements).
GOING CONCERN
On March 21, 2023, the Company announced a corporate debt financing, 
which is a 3 year-term loan of USD 110 million from KEB Hana Bank in 
Korea for the purpose of retiring the senior secured bond that matures 
on April 13, 2023.  REC Silicon’s largest shareholder Hanwha Solutions 
has committed to fully guarantee the announced debt financing, which 
will result in favorable terms compared to other financing alternatives.  
In addition to this USD 110 million debt financing, the company has a 
near term need to raise additional financing to meet liquidity 
requirements in 2023, in particular relating to the ongoing restart 
activities of the company’s polysilicon factory in Moses Lake and 
capacity investments in Butte. The Company is currently working with 
various financing parties and we are confident that we are close to a final 
solution that covers the entire funding amount needed for the next 12 
months. REC Silicon will update the market as financing plans are 
concluded. (see note 17, 29 and 33)
Accordingly, the Board of Directors confirms that the Financial 
Statements have been prepared under the assumption that the 
Company is a going concern and that this assumption was realistic at  
the date of the accounts.
REC SILICON ASA (NGAAP)
Financial Review
REC Silicon ASA (the Company) prepares its financial statements 
according to NGAAP. The Company is a holding company with corporate 
management and financial functions.
In 2022, REC Silicon ASA had a negative EBIT of USD 2.4 million 
compared to a negative EBIT of USD 2.3 million in 2021. The Company 
recorded a net loss of USD 89.4 million in 2022. The net loss included 
net financial expenses of USD 87.2 million which includes impairment of 
internal loans of USD 68.7 million, interest income of USD 1.8 million 
and interest expenses of USD 13.1 million. Other major remaining items 
of net financial items were net currency losses of USD 7.1 million due to 
cash balances held in NOK. Interest income from subsidiaries was 
suspended for 2022 and 2021 due to the financial position and outlook 
of the borrowing companies. In 2021 The net loss included net financial 
expenses of USD 29.8 million which includes impairment of loans to US 
subsidiaries of USD 25.7 million, impairment of loan to REC Silicon Pte 
Ltd of USD 5.2 million, and interest expenses of USD 13.1 million. Other 
major remaining items of net financial items were net currency gains of 
USD 0.8 million and other financial income related to the settlement of 
the indemnity loan in the amount of USD 13.4 million.(See note M to the 
financial statements for REC Silicon ASA).
Total equity for the parent Company was USD 188.4 million at 
December 31, 2022 compared to USD 168.4 million at December 31, 
2021. This increase is a result of the equity settlement of USD 109.5 
million offset by the net loss of USD 89.4 million discussed above.
Allocation of the Net Loss for the Parent Company 
The Board proposes that the net loss for the year of USD 89.6 million  
be distributed to other equity.
Change of Control
The USD Senior Secured Bond agreement has a change of control 
provision. If a shareholder or a group of shareholders gains control of 
more than 50 percent of the share capital, bondholders acquire a put 
option entitling them to cancel the commitments and declare all 
outstanding amounts and accrued unpaid interest due and payable.  
More detailed information can be obtained from the bond trustee, 
Nordic Trustee ASA.
RISK FACTORS
The Group’s activities expose it to a variety of financial risks, including 
market risk, operational risk, liquidity risk, credit risk, currency risk, 
interest-rate risk, refinancing risk, and others (See note 3 to the 
consolidated financial statements).
REC Silicon’s Board of Directors is responsible for determining the 
acceptable risk profile for the Company. The Board oversees risk 
management processes and conducts reviews of risks faced by the 
company and internal control procedures. 
REC Silicon’s management is responsible for reviewing and 
operationalizing the defined risk profile by maintaining a system for risk 
management. Management performs risk assessments and actively 
monitors the development of material risks and initiates actions 
accordingly.
Risk assessments are performed periodically. The materiality of each 
risk factor is determined by assessing the likelihood and consequence of 
that risk. Risks are evaluated to determine whether the level is 
acceptable or unacceptable and to prioritize activities to mitigate those 
risks that have the greatest potential to impact Company performance.
Board of Directors’ report

REC Silicon Annual Report 2022 13
Market risk
On January 31, 2023 the Company announced the entering into of a 
binding term sheet between its subsidiary REC Solar Grade Silicon LLC 
and Hanwha Solutions for a 10 year take-or pay offtake for FBR 
polysilicon produced at REC Silicon’s facility at Moses Lake, Washington. 
The Offtake provides for the sale to Hanwha Solutions of 100% of the 
prime FBR production from the facility.
Company management and the Board of Directors will continue to 
monitor COVID-19 and take appropriate action as additional 
developments occur.
Currently the Group does not have direct exposure to Ukraine or Russia, 
however, management and the Board of Directors will continue to 
monitor the conflict in Ukraine and will take necessary action to minimize 
market risk if required.
Operational risk
The Group’s production processes involve manufacturing, processing, 
storage, use, handling, distribution and transport of silane gas and other 
substances of an explosive or hazardous nature. Accidents or 
mishandlings involving these substances could cause property damage 
or injury, which could lead to significant liabilities and costs for the 
Group. The occurrence of a catastrophic event at one of the Group’s 
polysilicon production facilities could adversely impact production 
capacity at such facility for a significant period of time. In addition, an 
interruption in the supply of materials and services to one of the Group’s 
manufacturing facilities could disrupt production capacity for a 
significant period of time. Despite insurance coverage, the Group could 
incur uninsured losses and liabilities arising from such events, and/or 
suffer substantial losses in operational capacity, which could have a 
significant adverse effect on the Group’s business, prospects, financial 
results, and results of operations.
The production process for the Butte facility is energy intensive and 
subject to risk from high energy prices.
REC Silicon’s Moses Lake, Washington facility was shut down in the 
second quarter of 2019 due to difficult market conditions and Chinese 
tariffs on polysilicon produced in the United States. 
The Company is executing a plan to realize FBR production from its plant 
in Moses Lake in Q4 of 2023. Current activities include execution of 
engineering, procurement, and construction for FBR upgrades. The 
company is targeting a ramp to 50 percent operation during Q2 2024 
and a ramp to 100 percent operation during Q4 2024. 
Additional impairments and provisions would be required if the Moses 
Lake facility is not restarted.
Liquidity risk
On March 21, 2023, the Company announced a corporate debt financing, 
which is a 3 year-term loan of USD 110 million from KEB Hana Bank in 
Korea for the purpose of retiring the senior secured bond that matures 
on April 13, 2023.  REC Silicon’s largest shareholder Hanwha Solutions 
has committed to fully guarantee the announced debt financing, which 
will result in favorable terms compared to other financing alternatives.  
In addition to this USD 110 million debt financing, the company has a 
near term need to raise additional financing to meet liquidity 
requirements in 2023, in particular relating to the ongoing restart 
activities of the company’s polysilicon factory in Moses Lake and 
capacity investments in Butte. The Company is currently working with 
various financing parties and we are confident that we are close to a final 
solution that covers the entire funding amount needed for the next 12 
months. REC Silicon will update the market as financing plans are 
concluded. (see note 17, 29 and 33)
Credit risk
Credit risk is primarily related to trade receivables and guarantees 
provided for discontinued operations. In trade receivables, sources of 
credit risk include geographic, industry and customer concentrations, 
and risks related to the collection. Policies and procedures are in place 
for managing credit risk, including obtaining securities where possible. 
Market and customer specific developments affect credit risk. The 
Group provided parent company guarantees for the REC Solar Group 
related to the performance of solar panels and systems and the sale of 
REC ScanModule AB. The Group has been provided with offsetting 
guarantees by REC Solar Holdings AS. The guarantees are valid for 
relevant warranty periods and are limited by warranties provided on 
solar panels and systems. Parent company guarantees for REC Solar 
were USD 54.9 million at December 31, 2022. The guarantees will 
decrease from 2023 to 2039 when they will expire in their entirety.
Currency risk
The Company’s net cash flows from continuing operations are primarily 
in USD. Debt is denominated in USD. The Group’s currency risk relates 
primarily to cash balances held in currencies other than USD. The Group 
does not currently hold any hedging instruments to offset the risk of 
changes in exchange rates between the USD and NOK.
CORPORATE GOVERNANCE
Good corporate governance is essential to ensure that our business is 
run in a way that protects the long-term interest of all stakeholders. The 
Board of Directors has approved and implemented corporate 
governance principles endorsing and complying with the Norwegian 
Accounting Act and the Norwegian Code of Practice for Corporate 
Governance. The Group’s compliance with the Code of Practice is 
described in the report on Corporate Governance for 2022 which is 
included in this Annual Report. 
The Company has directors and officers liability insurance. The insurance 
covers the Board of Directors as well as officers of the company from 
legal personal liability for financial damage caused by the performance 
of their duties.
MARKET OUTLOOK
Company management and the Board of Directors will continue to 
monitor the war in Ukraine and will take necessary action to minimize 
market risk if required.
Board of Directors’ report

REC Silicon Annual Report 2022
14
Semiconductor supply chain participants and industry analysts continue 
to indicate that demand for semiconductor devices is expected to be 
soft throughout the first quarter of 2023. Historically Q1 has been a 
soft market but markets have shifted due to changes from the 
COVID-19 pandemic. We are seeing the market slow down due to these 
shifts along with concerns around a potential global downturn. The 
expectation is that the market will correct during 2023 and return to 
growth in 2024. 
Demand for REC Silicon’s semiconductor grade polysilicon and silicon 
gases are expected to remain stable in 2023 with some potential for 
growth in specialized segments. Factors associated with data 
transmission and storage, mobility, and increasing silicon content in 
automobiles and other consumer goods are expected to result in 
demand growth. The increasing trend towards electrification and the 
adoption of new technologies is also expected to increase demand for 
REC Silicon’s advanced silicon products. The passage of the CHiPS act in 
the United States is predicted to support semiconductor manufacturing 
in the United States.
Solar grade polysilicon prices will continue to see price declines in 2023 
as capacity is brought online. Continued growth of PV installations is 
forecasted in 2023. The outlook globally remains strong as both 
governments and corporations push efforts to slow global warming. 
While polysilicon capacity expansions have been announced that may 
result in oversupply, the restart of the Moses Lake FBR facility will be 
supported by the passage of the Solar Energy Manufacturing for 
America (SEMA) included in the Inflation Reduction Act. The forecasted 
increases in wafer capacity and increased demand for PV installations 
should result in strong demand for solar grade polysilicon. Industrial 
analysts estimate global demand for PV installations to surpass 300GW 
in 2023. 
Additionally, in 2022 the United States Department of Energy awarded 
grants to support development of a United States battery supply chain. 
Some of the awarded grants were directed to manufacturers of silicon 
anode battery materials. These developments are expected to help drive 
the commercialization of silicon-based anode material for batteries. 
Developer forecasts predict large scale silane demand by 2025.
EVENTS AFTER THE BALANCE SHEET DATE
On January 31, 2023 the Company announced the entering into of a 
binding term sheet between its subsidiary REC Solar Grade Silicon LLC 
and Hanwha Solutions for a 10 year take-or pay offtake for FBR 
polysilicon produced at REC Silicon’s facility at Moses Lake, Washington 
(the “Offtake”). The Offtake provides for the sale to Hanwha Solutions of 
100% of the prime FBR production from the facility.
On March 21, 2023 the Company announced a corporate debt financing 
of USD 110 million from KEB Hana Bank in Korea for the purpose of 
retiring the senior secured bond that matures on April 13, 2023. The 
contemplated debt financing will be fully guaranteed by REC Silicon’s 
largest shareholder Hanwha Solutions, which will result in favorable 
terms compared to other financing alternatives.  In addition to this USD 
110 million debt financing, the ongoing restart activities of the 
company’s polysilicon factory in Moses Lake and capacity investments in 
Butte, will require additional financing. REC Silicon is in the process of 
exploring all funding options, including debt financing and pre-payments 
from offtake contracts, and the company is confident that funds will be 
raised well in advance of such capital needs. REC Silicon will update the 
market as financing plans are concluded.  (see note 17, 29 and 33).
FORWARD LOOKING STATEMENTS
This report contains statements regarding the future in connection with 
the Group’s growth initiatives, profit figures, outlook, strategies and 
objectives. In particular, the section “Market Outlook” contains forward-
looking statements regarding the Group’s expectations. All statements 
regarding the future are subject to inherent risks and uncertainties, and 
many factors can lead to actual results and developments deviating 
substantially from what has been expressed or implied in such 
statements. These factors include the risk factors relating to REC 
Silicon’s activities described in section “Risk Factors” above.
Board of Directors’ report
Lysaker, March 23, 2023
Board of Directors
This document is signed electronically.
Tae Won Jun
Chairman of the Board
Dong Kwan Kim
Deputy Chair
Vivian Bertseka
Member of the Board
Roberta Benedetti
Member of the Board
Dr. Renate Oberhoffer-Fritz
Member of the Board
William K. Levens
President and CEO

REC Silicon Annual Report 2022 15
Board of Directors’ report
The Board of Directors and the Chief Executive Officer (CEO) have today 
considered and approved the report from the Board of Directors and CEO, 
the financial statements for the Group and for the parent company REC 
Silicon ASA (the Company) for the year ending December 31, 2022.
The consolidated financial statements of the Group have been prepared in 
accordance with International Financial Reporting Standards as adopted 
by the EU and additional disclosure requirements as stated in the 
Norwegian Accounting Act that are applicable at December 31, 2022. The 
financial statements for the Company have been prepared in accordance 
with the Norwegian Accounting Act and Generally Accepted Accounting 
Principles in Norway that are applicable at December 31, 2022. The report 
from the Board of Directors and CEO, including the report on corporate 
governance and sustainability, for the Group and the Company has been 
prepared in accordance with the Norwegian Accounting Act and the 
Norwegian Accounting Standard no. 16 applicable at December 31, 2022.
We confirm that, to the best of our knowledge: 
• 	 The financial statements for the Group and the Company for the year 
ending December 31, 2022 have been prepared in accordance with 
applicable accounting standards, and
• 	 The information in the financial statements gives a true and fair view 
of the Group’s and the Company’s assets, liabilities, financial position, 
and results of operations for the year ending December 31, 2022, and
• 	 The report from the Board of Directors for the year ending December 
31, 2022 includes a fair review of: 
•	 The development, results of operations and position for the Group 
and the Company, and 
•	 The principal risks and uncertainties for the Group and the Company.
STATEMENT OF COMPLIANCE
Lysaker, March 23, 2023
Board of Directors
This document is signed electronically.
Tae Won Jun
Chairman of the Board
Dong Kwan Kim
Deputy Chair
Vivian Bertseka
Member of the Board
Roberta Benedetti
Member of the Board
Dr. Renate Oberhoffer-Fritz
Member of the Board
William K. Levens
President and CEO

REC Silicon Annual Report 2022
16
1.	 INTRODUCTION 
ABOUT THIS REPORT
This Sustainability Report covers the calendar year 2022 for REC Silicon 
ASA and all its subsidiaries. The materiality assessment is based on the 
SASB framework for the industries Solar Technology and Project 
Developers and Semiconductors. The numerical disclosures are based on 
the upcoming reporting standards of the EU Corporate Sustainability 
Reporting Directive (CSRD) as outlined in the draft standards (ESRS) as 
published by EFRAG in November 2022. The report and its contents 
have not been subject to external verification. The attached TCFD report 
is based on the guidance from the Task Force for Climate-related 
Financial Disclosures.
VISION, MISSION, VALUES, PRINCIPLES
REC Silicon’s purpose is the development and sale of products and 
services related to renewable energy sources, as stated in its Articles of 
Association. It is therefore our obligation to ensure that we integrate 
sustainability in all we do so that we contribute to the energy transition 
with a minimal environmental footprint.
REC Silicon’s ambition is to operate in an ethical manner based on legally 
sound business practices in all respects. The Company has established a 
Code of Conduct and Sustainability Policy, which applies to all employees 
in all countries. The Code outlines our approach to:
•	 Human Rights
•	 Health and Safety
•	 The Environment
•	 Climate Action
•	 Anti-corruption and Bribery
•	 Governance
 
The full details of the Code can be found at the company website.
REC Silicon supports the United Nations (UN) Sustainable Development 
Goals (SDGs) and believes it has the potential to deliver meaningful 
positive impact on SDG 7 – Affordable and Clean Energy and SDG 13 – 
Climate Action. At the same time, we recognize our responsibility to 
minimize the impact our operations have on our people and on society, 
working towards SDG 3 – Good Health and Wellbeing, SDG 6 – Clean 
Water and Sanitation, SDG 11 – Sustainable Cities and Communities, 
SDG 12 – Responsible Consumption and Production and SDG 15 – Life 
on Land. We also aim to contribute to society through SDG 5 – Gender 
Equality and SDG 8 – Decent Work and Economic Growth.
BUSINESS MODEL AND STRATEGY
REC Silicon ASA is headquartered in Lysaker, Norway and has two 
manufacturing facilities in the United States (US). The Company 
converts metallurgical grade silicon (MGS) into silane gas using a closed-
loop process that recycles chloride metals back to the initial reactors. 
The silane gas is further processed into ultra-pure polysilicon through 
the Siemens method or the fluidized bed reactor (FBR) method. The 
purchasers of ultra-pure polysilicon are typically silicon wafer producers, 
which turn the purified polysilicon into wafers for the use either in the 
semiconductor and electronics industries or the solar photovoltaic (PV) 
industry. REC Silicon also market and sell silane gas as a separate 
product. Currently users of silane gas are typically in the electronics 
industries. Further, new technologies utilizing silane gas as anode 
material in batteries are under development, and silane gas markets 
could in the future be expanded to include the battery industry for 
energy storage.
REC Silicon’s strategy is to maintain its position as a technological 
innovator in the silicon materials industry. The company aims to take  
full advantage of three important sets of legislation that have recently 
been passed in the US:
•	 The Inflation Reduction Act of 2022
•	 The CHIPS & Science Act of 2022
•	 The Infrastructure and Jobs Act of 2021
Sustainability report
Sustainability report
GENDER
EQUALITY
CLEAN WATER
AND SANITATION
AFFORDABLE AND 
CLEAN ENERGY
SUSTAINABLE CITIES 
AND COMMUNITIES
RESPONSIBLE
CONSUMPTION 
AND PRODUCTION
CLIMATE
ACTION
LIFE 
ON  LAND
FOCUS AREAS AND THE UNITED 
NATIONS SUSTAINABLE 
DEVELOPMENT GOALS
GOOD HEALTH
AND WELL-BEING
DECENT WORK AND 
ECONOMIC GROWTH

REC Silicon Annual Report 2022 17
The general ambition of these sets of legislation is to build-up low-
carbon value chains in the US, where the semiconductor and solar 
industries are particularly relevant to the Company. As a response,  
REC Silicon is restarting its Moses Lake plant, which uses the FBR 
technology to produce polysilicon. This process consumes 80%-90% 
less energy than the conventional Siemens method and will enable the 
Company to provide low-carbon polysilicon, primarily for the solar 
industry. The company is also expanding its silane gas capabilities at 
both Butte and Moses Lake in response to anticipated demand from  
the electronics industries and industries providing batteries to the 
electric vehicle industry.
THE VALUE CHAIN
Silicon is the second most prevalent element in the earth’s crust and is 
predominantly found together with oxygen in minerals like quartzite and 
silicates. About 20% of global production is purified into MGS using an 
electric arc furnace with a coking agent and significant amounts of 
energy. The higher purity MGS is used to produce polysilicon, while the 
lower purity is mainly for the use in the automotive industry.
The processing of MGS into silane gases and further into ultra-pure 
electronic grade polysilicon through the traditional Siemens method is 
highly energy intensive. The Butte facility, which uses the Siemens 
method, has an energy intensity of around 170 MWh per ton of product. 
The FBR method used at Moses Lake has approximately 80%-90% less 
energy use per ton of product.
Sustainability report
Outputs
Inputs
Mining
Silicon Metal
Polysilicon
Wafers
Semiconductors
SO2 
NOX 
CH4 
CO2 
Oxygen 
Waste
VOCs 
HCl 
NH3 
CL2 
HCl 
CO2 
Waste 
Wastewater
Solar
10%
35%
30%
25%
Value chain 
CO2e
Solar panels
Gases 
CO2 
Waste 
Wastewater
Carbon agent 
Energy
Advanced machinery 
Cleaning agents 
Water
Advanced machinery 
Chemicals 
Water 
Energy
Quartz or gravel
REC Silicon
Semiconductors
2%
10%
20%
68%
SiCl4 
H2 
SiHCl3 
HCl 
CO2 
Waste 
Wastewater
Energy 
Trichlorosilane 
Hydrogen 
Water 
Boron 
Phosphorous
REC SILICON VALUE CHAIN

REC Silicon Annual Report 2022
18
Sustainability report
The Company currently withdraws around 2.5 million cubic meters of 
water per year, discharging about 60% of this in the form of cleansed 
water, legally required to be above drinking water standard. REC Silicon 
is subject to strict environmental permits requiring full capture of 
emissions to air, using scrubbers. The performance relative to these 
permits is subject to third party verification and ensures little or no 
impact on the environment and on local communities.
Before REC Silicon’s products reach the end-users in the form of 
semiconductors or solar PV panels, wafer producers process the 
polysilicon into wafers using several energy, water and chemicals-
intensive steps like slicing, bevelling, lapping, etching, heating, polishing 
and cleaning. The semiconductor industry uses additional energy, water 
and chemicals-intensive processes to produce microchips for a wide 
range of applications. The solar PV industry produces cells and panels 
that adds inputs such as silver, glass and aluminum for the final product.
In its final use, polysilicon has significant benefits for society in the form 
of renewable energy and through enabling digitalization to save energy 
and resources. On the other hand, the production of the material, cradle 
to grave, requires significant amounts of energy, water and chemicals. 
Hence, greenhouse gas (GHG) emissions resulting from energy use is 
important, as well as emissions to air and water, water stress, 
biodiversity and ecosystems, in addition to health and safety for 
personnel involved during the various steps of production.
MATERIALITY ASSESSMENT
REC Silicon is generally classified within both the semiconductor and 
solar energy industries, but is also expanding its offering to serve the 
battery storage industry. The materiality assessment uses the 
Sustainability Accounting Standards Boards (SASB) framework for all 
three industries, as an initial evaluation of material topics. This indicates 
a general overlap of material topics.
SASB
MATERIAL TOPICS
SOLAR 
TECHNOLOGY 
AND PROJECT 
DEVELOPERS
SEMI-
CONDUCTORS
FUEL 
CELLS AND 
INDUSTRIAL 
BATTERIES
GHG emissions
x
Energy management
x
x
x
Water management
x
x
Waste management
x
x
Ecological impacts
x
Product design and life cycle  
management
x
x
x
Materials sourcing and efficiency
x
x
x
Employee Health and Safety
x
x
Employee Engagement, Diversity  
and Inclusion
x
Competitive Behaviour
x
 
The Board of Directors has considered the SASB framework in relation 
to the business of the Company. Six focus areas have been established 
as a result, each with a specific set of KPIs that are monitored for 
performance and as the basis for performance targets.

REC Silicon Annual Report 2022 19
Sustainability report
FOCUS AREA
RATIONALE
KPIS
Safety
The health and safety of personnel involved in REC Silicon’s operations, as 
well as those in the value chain, are of utmost importance. The company 
monitors five internal KPIs to ensure good performance, as well as one 
external through regular supply-chain audits
•	 LTI rate, TRIF
•	 Safe job analyses
•	 Hazard recognition audits
•	 Serious incidents
•	 Supply chain audits
•	 Near misses
Energy
The entire value chains for both the solar PV and semiconductor industries 
are highly energy intensive and therefore contribute meaningfully to GHG 
emissions. It is the ambition of the entire value chain, including REC Silicon, 
to reduce energy intensity and increase the use of renewable energy sour-
ces to minimize the carbon footprint of the end-products. Key parameters 
for the company include energy mix, energy efficiency and energy sourcing
•	 Energy use
•	 Emissions from energy use
•	 Energy mix
•	 Energy efficiency
•	 Quality and reliability of energy sourcing
Water
REC Silicon’s production consumes substantial volumes of water resources. 
Although REC Silicon’s facilities are not placed in areas of high water-stress, 
the discharge of water from production needs to be monitored and mana-
ged to ensure that it has the required water quality. The company operates 
according to strict environmental regulations that stipulate that any 
discharged water needs to be above drinking water standard
•	 Water consumption
•	 Water quality
•	 Waste-water discharge
•	 Water use efficiency
Environment
REC Silicon’s production processes generate significant volumes of waste, 
where increased recycling could be important to reduce the environmental 
footprint. Emissions to air are also relevant, as well as the protection of local 
biodiversity. The company monitors waste volumes, waste recycling, raw 
materials sourcing and participates in initiatives to preserve local biodiversity
•	 Waste production volumes
•	 Waste recycling
•	 Raw materials sourcing
•	 Emissions to air
•	 Biodiversity initiatives
•	 Recovery of end-of life products
Equal treatment and 
human rights
The company needs access to qualified personnel and strives to be an 
attractive workplace that respects all aspects of human rights, giving eve-
ryone an equal opportunity to succeed. The company recognizes its respon-
sibility to ensure human rights in the value chain, which is done through 
regular supply-chain audits
•	 Percentage of women in workforce and management
•	 Gender pay gap 
•	 Gender equality Initiatives
•	 Human rights audits and violations
•	 Local community contributions
Governance
REC Silicon adheres to the strictest principles of fair business behavior and 
integrates the governance of sustainability matters fully in the overall cor-
porate governance structure. The ultimate responsibility for the governance 
of sustainability matters lies with the Board of Directors, which define and 
monitor the sustainability strategy. The company carries out anti-corruption 
audits, provides anti-corruption training to its workforce and makes a 
whistle-blower service available
•	 Anti-corruption audits and violations
•	 Number of whistle-blower incidents
•	 Transparency of ESG governance structure 
•	 Stewardship initiatives in value chain
The Company has performance targets related to Energy, Environment 
and Safety. Going forward, additional targets will be established relating 
to water usage, equal treatment and human rights.
STAKEHOLDER ENGAGEMENT
REC Silicon maintains a constant dialogue with its stakeholders, which 
further inform the definition of material sustainability matters for the 
company in the form of informal feedback. The Company plans to 
establish a more structured plan and process for stakeholder 
engagement going forward. The primary stakeholders are:
•	 Employees
•	 Clients and end-users
•	 Suppliers
•	 Investors
•	 The local community
 
Feedback from the value chain stakeholders (suppliers, clients and end-
users) is particularly important in the context of the growing need to 
manage sustainability issues across the entire value chain. 
Clients and end-users
While both the semiconductor industry and the solar PV industry 
ultimately deliver products that enable the transition to a low-carbon 
future, both are, due to their rapid growth, under pressure to reduce the 
carbon footprint of their respective supply-chains.
There are several initiatives in the solar industry to reduce the carbon 
footprint of the solar PV supply chain, such as the Ultra-low Carbon Solar 
Alliance (where REC Silicon is a member), the Decarbonising Industrial 
Supply Chain Energy Program (DISC-e), labelling schemes to certify low-
carbon panels, as well as governmental initiatives to prioritise low-
carbon suppliers in public tenders.

REC Silicon Annual Report 2022
20
Sustainability report
The same goes for the semiconductor industry, where the leading 
producers are actively promoting a low-carbon supply chain, requiring 
high-energy consumption suppliers to verify their GHG emissions and to 
set targets for emission reductions.
It is therefore vital for REC Silicon to be able to deliver polysilicon that is 
low in energy- and carbon intensity. This is also reflected in the ambitions 
of the Solar Energy Manufacturing Act of 2022 (SEMA), which aims to 
establish a low-carbon supply chain for the industry in the US.
Employees and the local communities
Employees of REC Silicon regard health and job safety, diversity and 
inclusion as key factors. Both REC Silicon’s US production facilities are 
important contributors to their respective local communities, providing 
jobs and tax income. With this follows strict environmental performance 
(no pollution) and the protection of ecosystems and biodiversity. The 
company maintains close relations with the local communities through 
company initiatives, donations and employee volunteer work.
Investors
Through dialogue with investors, all aspects of sustainability are 
discussed. Of particular importance to investors in the company are 
areas related to climate change, supply-chain management, employee 
health and safety and governance. New regulations are also being 
introduced worldwide putting increased responsibility on listed 
companies to identify impacts, risks and opportunities related to climate 
change, attempting to boost transparency on the investment risks for 
investors. 
Suppliers
REC Silicon’s suppliers echo the commitment to reduce the carbon 
footprint of the polysilicon value chain. The Company has started a 
project to map the carbon emissions of its upstream value chain and to 
engage with the suppliers with the largest footprint to set carbon 
emission reduction targets. Further engagement will also include a focus 
on human rights management.
GOVERNANCE AND RISK MANAGEMENT
The oversight and ultimate responsibility for sustainability-related 
matters lie with the Board of Directors. The Board of Directors review 
sustainability matters quarterly with regards to HSE and environmental 
performance. General performance on sustainability KPIs, as outlined 
above, are reviewed on an annual basis, where the effectiveness of 
policies and actions are also assessed. The need for actions and 
improvements may result in revised policies and the launch of programs 
and initiatives to be implemented in the following year. All targets and 
related KPIs are approved by the Board of Directors.
The Board of Directors consists of five members, with a 60% female 
representation and 60% of the members being independent. The 
members have strong sustainability credentials, either as executives  
of renewable energy companies or as experts and advisors within 
climate-related and renewable energy-related NGOs and investment 
businesses. For further details on the Board of Directs, see the  
Company Overview Section of the Annual Report.
At the senior management level, the Vice President of HSE, PSM and  
HR has the responsibility for health & safety, human resources/social 
matters, as well as environmental performance. The organization has 
additional administrative resources dedicated to the monitoring of 
environmental performance in relation to regulatory reporting 
obligations to the US Environmental Protection Authority (EPA).  
Such reporting typically covers GHG emissions, emissions to air and 
water discharge.
Sustainability-related matters are integrated into the overall risk 
management framework of the Company. The risk management system 
is in the process of being ISO 14001 certified, which is expected to be 
complete during 2023. Group management sets the context in which 
risks are managed and supervises the risk management process. Group 
management performs separate risk evaluations based on a top-down 
approach. Risk assessments are presented to the Audit Committee and 
the Board of Directors. The Board conducts a review of risks in 
connection with the approval of the annual budget.
Group management regularly updates the Board of Directors including 
operational reviews, HSE (Health, Safety and Environment) performance, 
financial highlights and key performance indicators. Prior to each Board 
meeting, the CEO prepares a report to the Board of Directors, which 
includes this information in addition to any items requested by Board 
members and items requiring action by the Board of Directors. Because 
the Group operates internationally, it is required to comply with 
numerous national and international laws and regulations. All business 
activities and processes must be conducted in accordance with laws, and 
regulations.

REC Silicon Annual Report 2022 21
Sustainability report
2.	 CLIMATE AND THE ENVIRONMENT
REC Silicon delivers products that are integral to the green transition as 
key inputs to the renewable energy industry and to the electronics and 
semiconductor industries, both of which are central to the electrification 
of society. Climate-related matters therefore represent an opportunity 
set for the Company.
At the same time, the Company’s business and value chains are very 
energy intensive and result in significant carbon emissions. The value 
chains also require substantial water resources, generate emissions to 
air, water and soil, and produces large volumes of solid waste. In addition 
to these impacts, there are obvious climate-related risks that may affect 
the Company going forward, both in terms of physical risks and 
transition risks.
IMPACTS
1)	 CO2e emissions
REC Silicon’s current production levels result in around 200,000 tons of 
carbon emissions, where the primary driver is energy use. This equals 
approximately 46 tons of CO2e per ton of product. The Company 
recognizes its responsibility to minimize these emissions through 
utilizing available technologies, as well as implementing efficiency 
improvements in production to reduce energy use and switching to 
renewable energy sources.
2)	 Water use
The company’s operations currently have a gross water consumption of 
about 2.5 million cubic meters, equivalent to more than 500 cubic 
meters per ton produced. None of the production locations are in areas 
of high baseline water stress, according to the World Wildlife Fund’s 
Water Risk Filter global dataset. The water discharge amounts to 1.5 
million cubic meters, which is subject to strict environmental standards 
to ensure that any discharged water is above drinking water standard.
3)	 Waste
The operations generate in excess of 4,500 tons of waste, equal to one 
ton of waste per ton of product. The waste consists mostly of non-
hazardous solid waste generated from processing metallurgical grade 
silicon and from air pollution control (scrubbers), which is pressed and 
sent to a local landfill for disposal. Less than 0.03% is hazardous waste.
4)	 Pollution
REC Silicon operates under a minor source air quality permit ensuring 
little or no emissions to air. The Company uses scrubbers to capture any 
pollutants, as outlined in the separate section on waste above.
RISKS
1)	 Energy and CO2e emissions
With 2.8 terajoule of annual direct and indirect energy usage, REC Silicon 
is exposed to risks related to energy supply and costs. The primary 
energy source is natural gas, while grid electricity is used as a secondary 
energy source. The Company is therefore exposed to future risks related 
to energy availability, as well as carbon taxes on fossil energy consumed. 
The upstream supply chain is also highly energy intensive and faces 
similar risks. Establishing a financially and environmentally sustainable 
energy sourcing strategy is therefore highly important.
2)	 Water resources
While the Company does not operate in areas of high water-stress, 
future climate change that leads to increased frequency and severity of 
droughts may affect access to water. Storm water management may 
also be an issue related to physical climate change due to the risk of 
more extreme weather patterns.
3)	 Waste
Future requirements to increase waste recycling could imply extra costs 
for the Company and no meaningful technology exists to turn the solid 
waste into recyclable or reusable products. REC Silicon collaborates 
with other producers to investigate applicable solutions that could be 
used.
OPPORTUNITIES
1)	 Solar energy
Based on the International energy Agency (IEA) World Energy Outlook 
2022, the pathway to 1.50 Celsius global warming involves net zero 
emissions by 2050. In this scenario, unabated fossil fuels need to be 
replaced by about 300 exajoule per year (EJ/year) of low-emission 
energy sources with electricity’s share of final energy consumption 
required to increase from about 20% today to 50% in 2050. Solar PV 
energy supply is expected to make up nearly 40% of the required 
increase in renewable energy supply and 25% of total energy supply by 
2050. This is equivalent to 124 EJ/year of energy, a 26-fold increase 
from the 5 EJ/year provided from solar energy in 2020 and requires an 
enormous ramp up of the production capacity of the entire value chain 
for solar PV panels. Consequently, the IEA estimates that the global 
production capacity for polysilicon needs to double from 2022 to 2030 
and increase further thereafter.
2)	 Battery storage
The electrification of society brings the need for energy storage 
solutions, both within transport and for intermittent renewable energy 
like solar and wind to ensure stable and efficient grid distribution of 
power. It is estimated that battery production needs to increase 100-
fold to keep pace with the energy transition. Silane gas is regarded as a 
promising anode material for batteries. In addition to the abundance of 
silicon and comparably low cost, silane may provide additional benefits 
in reducing the space needed for batteries, improving the energy density, 
and allow for more abundant raw materials to be used in the production 
of batteries.

REC Silicon Annual Report 2022
22
Sustainability report
3)	 Low carbon polysilicon
The expected growth in solar energy production requires substantial 
resources to produce all inputs required for the panels. The resource and 
energy use involved in manufacturing solar panels is estimated to emit 
between 10 and 15 gigatons tons of CO2e by 2050, and potentially up to 
30 gigatons in a high-growth scenario . 1)
REC Silicon is a member of the Ultra Low-Carbon Solar Alliance, which 
has a target to reduce the CO2e footprint of solar panels by 50%. This 
could save 5-7.5 gigatons of CO2e emissions by 2050. Establishing a full 
low-carbon value chain for polysilicon is therefore a significant 
opportunity for the Company and one which is backed by recent 
legislative initiatives in the US.
POLICIES 
REC Silicon has established a Code of Conduct and Sustainability Policy 
that forms the overriding framework for the management of climate-
related impacts, risks and opportunities, as well as other environmental 
matters. The Code sets goals and commitments relating to:
•	 Reducing the carbon intensity of the polysilicon production
•	 Increasing the use of renewable energy in the production processes
•	 Sourcing of raw materials from suppliers using low-carbon 
production methods
•	 Reducing waste at all stages in production and ensure maximum 
recycling
•	 Using a systematic approach to identify, manage, and track air 
emissions, storm water management and waste management
The Company has also set a specific commitment to reduce the carbon 
intensity per ton of product by 40% within 2027 (base-year 2021).
The objective of The Code is to minimize the impact of the Company’s 
operations on the climate and the environment in general, including any 
impact on the local communities where the Company operates. The Code 
also represents an overall framework for making the Company future-fit 
to manage risks related to climate and the environment, as well as 
capture opportunities for growth. The Code applies to all the Company’s 
operations.
The actions and plans related to the policy objectives are further 
outlined below.
ACTIONS AND PLANS
1)	 Restarting Moses Lake to reduce carbon intensity
The current polysilicon production from REC Silicon’s Butte facility uses 
the Siemens technology, which accounts for about 90% of all worldwide 
polysilicon production 2). The Siemens method is batch-based with 
frequent shutdowns and restarts of the reactors. This involves extensive 
heating and cooling processes consuming significant amounts of energy. 
In contrast, the Moses Lake facility uses the fluidized bed reactor (FBR) 
technology, which uses 80%-90% less energy per ton of product than 
the Siemens method. Energy consumption is the main driver of the 
carbon footprint of polysilicon, along with natural gas. Since the 
production capacity of Moses Lake is more than three times higher than 
the Butte facility, the carbon intensity of REC Silicon’s overall output 
would fall significantly as the production at Moses Lake ramps up. The 
MWh / ton of product
Normalised Energy Intensity
Electricity
Other fossil fules
Natural Gas
0
20
40
60
80
100
120
140
160
180
200
Moses Lake
Bute
tCO2e/t 43.4
tCO2e/t 12.9
-70%
tCO2e/t
Carbon Intensity vs Moses Lake Capacity Utilization
0
5
10
15
20
25
30
35
40
45
50
100%
80%
60%
40%
20%
0%
Target 25.4
1	 Technological learning for resource efficient terawatt scale photovoltaics, Energy & Environmental Science Journal Issue 10, 2021
2	 https://www.bernreuter.com/polysilicon/production-processes/

REC Silicon Annual Report 2022 23
Sustainability report
products from the facility are specifically targeting the solar energy 
industry, which means that the Company will contribute meaningfully to 
reducing the overall carbon footprint of solar panels. 
The plan to restart Moses Lake towards the end of 2023 is ambitious 
and requires REC Silicon to have success along several critical lines: 
•	 A significant capital expenditure budget and complex operations are 
involved in restarting a facility that has been mothballed since 2019
•	 Adequate product quality must be reached and maintained
•	 There must be sufficient market demand for the product and long-
term off-take contracts need to be secured
•	 REC Silicon needs to secure significant funding for the restart project
2)	  Mapping upstream Scope 3 emissions to  
reduce value chain carbon intensity
In addition to its membership in the Ultra Low-Carbon Solar Alliance, 
which is involved in the downstream value chain in the solar industry, REC 
Silicon believes it can have additional impact in the upstream value chain.
REC Silicon has not assessed its Scope 3 emissions previously, so it is 
difficult to set clear and measurable targets for the potential emission 
reductions. However, based on various industry reports and scientific 
publications on the energy and resource use through the solar industry 
value chain, the upstream Scope 3 emissions may be illustrated as in the 
graph to the right (tons of CO2e per ton of product):
REC Silicon intends to work directly with the major suppliers to calculate 
the carbon footprints of the products and/or services delivered to the 
Company and use internal data where applicable and possible. The 
Company will adhere to the GHG Corporate Value Chain Accounting 
Reporting Standard in calculating upstream Scope 3 emissions.
The outcome of the two above-mentioned plans is expected to 
contribute to the Code of Conduct and Sustainability Policy’s objective 
to reduce the carbon intensity of the Company’s production. Since 
Moses Lake has the potential to source renewable hydropower, the 
actions may also increase the use of renewable energy in the Company’s 
production. Moreover, mapping the upstream Scope 3 emissions will 
enable REC Silicon to potentially make choices to source key inputs from 
the least carbon-intensive suppliers.
Additional efforts to increase water use efficiency and to explore ways 
to recycle or reuse solid waste are in the planning phase and are 
expected to become more material in the coming years.
 
TARGETS AND PERFORMANCE
The targets adopted performance for climate-related and environmental matters are summarized in the table below. 
TARGET
UNIT
BASE YEAR
BASELINE 
VALUE
2022
TARGET 
VALUE
TARGET 
YEAR
2022 VS  
TARGET
Carbon Intensity per ton of product  
(Scope 1+2, Market Based)
tCO2e/Mt
2021
42.4
46.1
25.4
2027
181%
Environmental Permit Breaches
#
Continuous
n.m.
6
0
n.m.
n.m.
Expected overall mix
REC Silicon Baseline Scope 1+2 vs Upstream 
0
5
10
15
20
25
30
35
40
45
Low
High
REC Scope 1+2
9
42
REC Scope 1+2 Baseline
MGS
Other upstream
6
3
6
Upstream Scope 3

REC Silicon Annual Report 2022
24
Sustainability report
Climate 
During 2022, net production volumes dropped by 4%, while energy 
usage increased by 4% so the energy intensity went up by 8% compared 
to 2021. The main reason is a change in the product mix in 2022, which 
had a higher proportion of polysilicon compared to 2021. 
Polysilicon, as the ultimate end-product for the company, is more energy 
intensive than silane gas which is used both as an input to polysilicon and 
as a stand-alone product. The production of polysilicon uses significantly 
more electricity, which explains the 6% increase in electricity 
consumption year-over-year. 
Another driver for the increased energy use, although more minor, was 
higher activity related to preparations started for the start-up of the 
Moses Lake facility, which resulted in the number of employees growing 
by 25% compared to the previous year.
Despite slightly lower production volumes, Scope 1 emissions were flat 
owing to the above-mentioned change in product mix. Scope 2 emissions 
were up by 6% in line with increased electricity consumption due to the 
11% increase in polysilicon production. 
As a result, the carbon intensity increased by 9% from 2021 to 
46.1tCO2e/ton. The company maintains a target of 25.4 tCO2e/ton by 
2027. This is driven by the start-up of Moses Lake, which uses 80%-
90% less energy per ton of polysilicon than the Butte facility, the only 
active facility in 2022. Moses Lake is due to start up during Q4’23 and 
there will likely be limited change in the carbon intensity until 2024.
CLIMATE PERFORMANCE
UNIT
2020
2021
2022
% CHANGE 
2022/2021
Production Numbers
Polysilicon production
Mt
969
1,307
1,453
11%
Net Silane gases production
Mt
3,084
3200
2,890
-10%
Total production
Mt
4,053
4,507
4,343
-4%
ENERGY
Energy Consumption
Coal and coal products
MWh
0
0
0
n.m.
Crude oil and petrolum products
MWh
478
459
527
15%
Natural gas
MWh
171,152
179,924
180,236
0%
Other non-renewable sources
MWh
14
57
21
-64%
Nuclear products
MWh
0
0
0
n.m.
Purchased or acquired electricity, heat, steam and cooling from  
non-renewable sources
MWh
498,701
563,179
595,022
6%
Total non-renewable energy consumption
MWh
670,346
743,619
775,806
4%
Share of non-renewable sources in total energy consumption
%
100%
100%
100%
Direct Energy Consumption
MWh
171,645
180,440
180,784
0%
Indirect Energy Consumption (Electricity)
MWh
498,701
563,179
595,022
6%
Total Energy Consumed
MWh
670,346
743,619
775,806
4%
Energy Intensity
MWh/Mt
165
165
179
8%
GHG EMISSIONS
Scope 1 GHG Emissions
Gross Scope 1 GHG emissions
tCO2e
31,019
32,608
32,799
1%
Scope 2 GHG Emissions
Gross location-based Scope 2 emissions
tCO2e
136,580
154,240
162,960
6%
Gross market-based Scope 2 emissions
tCO2e
140,227
158,358
167,311
6%
Total GHG emissions (Scope 1 + Scope 2, Location Based)
tCO2e
167,599
186,848
195,759
5%
Total GHG emissions (Scope 1 + Scope 2, Market Based)
tCO2e
171,246
190,966
200,110
5%
Carbon Intensity (Scope 1 + 2, Market Based)
tCO2e/Mt
42.3
42.4
46.1
9%
Scope 3 Emissions
tCO2e
n.a.
n.a.
n.a.
n.m.

REC Silicon Annual Report 2022 25
Sustainability report
Restatement of historical figures
For the 2022 report, REC has restated the historical figures for CO2 
emissions and for energy usage. This refers to five items:
•	 Natural gas consumption has been restated at the request of the US 
Environmental Protection Agency (EPA), where the adjustment refers 
to pass-through volumes of natural gas to an adjacent hydrogen 
production facility owned by a third party. This is the main reason for 
the reduction in energy consumption. 
•	 The energy mix reported for 2021 included a data error that 
classified natural gas consumption as diesel consumption, which 
overstated the Scope 1 GHG emission numbers.
•	 The classification of energy mix has been restated to fit with current 
reporting standards, where diesel and gasoline are reported as “crude 
and petroleum products”, while propane is reported as “other non-
renewable sources”.
•	 The denominator for carbon intensity (production volume) has been 
changed to reflect that part of the silane production volumes is used 
as input in polysilicon production, so to avoid double counting, only 
the net silane production is used to measure carbon intensity. Actual 
production numbers for polysilicon have also been updated and 
corrected. Carbon intensity is now calculated based on market-based 
Scope 2 emissions.
•	 Updated CO2 factors for grid electricity purchased in the WECC 
Northwest NWPP region.
•	 Carbon intensity is now market based, while the 2021 and 2020 
figures were location based.
 
The effects of the restatements are as follows: 
 
2020
2021
RESTATEMENT EFFECT
UNIT
NEW
OLD 
% CHANGE
NEW
OLD 
% CHANGE
Polysilicon productin
Mt
969
906
7%
1,307
1,225
7%
Net Silane gases production
Mt
3,084
4,545
-32%
3,200
5,142
-38%
Total production
Mt
4,053
5,451
-26%
4,507
6,367
-29%
Energy consumption
 
Crude and petroleum products
MWh
478
226,508
-100%
459
231,224
-100%
Natural gas
MWh
171,152
281
n.m.
179,924
184
n.m.
Other non-renewable sources
MWh
14
0
n.m.
57
0
n.m.
Purchased electricity
MWh
498,701
497,373
0%
563,179
562,290
0%
Total non-renewable energy consumption
MWh
670,346
724,162
-7%
743,619
793,698
-6%
Direct Energy Consumption
MWh
171,645
226,797
-24%
180,440
231,250
-22%
Indirect Energy Consumption (Electricity)
MWh
498,701
497,373
0%
563,179
562,290
0%
Total Energy Consumed
MWh
670,346
724,170
-7%
743,619
793,540
-6%
Energy Intensity
MWh/mt
165
125
32%
165
133
24%
Scope 1 GHG emissions
tCO2e
31,019
59,982
-48%
32,608
61,168
-47%
Total GHG emissions (Location Based)
tCO2e
167,599
225,220
-26%
186,848
225,220
-17%
Total GHG emissions (Market Based)
tCO2e
171,246
n.a.
190,966
n.a.
Carbon Intensity
tCO2e/Mt
42.3
37.6
12%
42.4
35.4
20%

REC Silicon Annual Report 2022
26
Sustainability report
Environment
Water withdrawal was up from the previous year, owing to the previously 
mentioned change in product mix which is more energy and water 
intensive than was the case for 2021. As before, around 60% of the 
water is discharged back to surface water where the water quality is 
subject to strict regulatory requirements.
Waste volumes and intensity was lower in 2022 than in 2021. Only a 
small fraction (0.7%) was diverted from disposal for recycling. Of the 
total waste, only a fraction (0.03%) is hazardous waste, while 96% is 
solid waste from production and from scrubbers used to capture 
emissions. There are still few, if any, solutions for the reuse or recycling 
of this waste, which explains why the recycling rate still is low.
REC Silicon experienced a total of 6 environmental permit breaches 
during 2022, double that of the previous year. Of these, four were WET 
test failures for pollutants in wastewater, while one refers to an NPDES 
permit violation where the company failed to have a compliant sample of 
wastewater and one refers to a DEW WPB inspection. While the company 
is not satisfied with the increase in breaches, none of the 2022 incidents 
were serious.
ENVIRONMENTAL PERFORMANCE
UNIT
2020
2021
2022
% CHANGE 
2022/2021
Non-GHG emissions to air, direct
SOx sulphur dioxide emissions
Mt
n.a.
n.a.
0.5
n.m.
NOx nitrogen oxides emissions
Mt
n.a.
n.a.
55.2
n.m.
CO carbon monoxide emissions
Mt
n.a.
n.a.
32.6
n.m.
Volatile organic compounds emissions (VOC)
Mt
n.a.
n.a.
2.0
n.m.
Particulate matter
Mt
n.a.
n.a.
15.0
n.m.
Coarse particulate matter (PM10)
Mt
n.a.
n.a.
5.8
n.m.
Fine particulate matter (PM 2.5)
Mt
n.a.
n.a.
3.2
n.m.
Other
Mt
n.a.
n.a.
5.0
n.m.
Water
Surface water withdrawn from freshwater
Mill m3
2.4
2.2
2.4
9%
Produced water withdrawn from freshwater
Mill m3
0.1
0.1
0.1
0%
Total water withdrawal
Mill m3
2.5
2.3
2.5
9%
Water discharge to surface water
Mill m3
1.4
1.5
1.5
-1%
Water discharge to groundwater
Mill m3
0.0
0.0
0
n.m.
Water discharge to third-party water
Mill m3
0.0
0.0
0
n.m.
Total water discharge
Mill m3
1.4
1.5
1.5
-1%
Total water consumption
Mill m3
1.1
0.8
1.0
26%
Share of water from regions with High Water Baseline Stress
%
0
0
0
n.m.
Share of water from regions with Extremely High Water Baseline Stress
%
0
0
0
n.m.
Water discharge share of water withdrawal
%
57%
64%
59%
n.m.
Water consumption per produced unit
'000 m3/Mt
0.27
0.18
0.24
31%
Waste water discharge per produced unit
'000 m3/Mt
0.36
0.32
0.33
3%
Waste
Hazardous waste generated
Mt
0.4
1.4
1.6
19%
Hazardous waste diverted from disposal
Mt
n.a
n.a
0.8
n.m.
Hazardous waste directed to disposal
Mt
n.a
n.a
0.8
n.m.
Non-hazardous waste generated
Mt
5,176
5,315
4,519
-15%
Non-hazardous waste diverted from disposal
Mt
n.a
n.a
29
n.m.
Non-hazardous waste directed to disposal
Mt
n.a
n.a
4,490
n.m.
Total waste generated
Mt
5,176
5,316
4,520
-15%
Total waste diverted from disposal
Mt
n.a.
n.a.
30
n.m.
Total waste directed to disposal
Mt
n.a.
n.a.
4,491
n.m.
Waste Intensity
Hazardous waste per produced unit
Mt
0.0
0.0
0.0
4%
Total waste per produced unit
Mt
1.3
1.2
1.0
-12%
Ecological Impacts
Total number of permit breaches
#
3
3
6
100%
Number of serious incidents or environmental releases
#
0
0
0
n.m.

REC Silicon Annual Report 2022 27
Sustainability report
3.	 HEALTH AND SAFETY
Health and safety have the highest priority and REC Silicon aims to 
prevent all work-related accidents, injuries, and occupational illnesses. 
The target is zero incidents, zero injuries, and no harm to employees, 
contractors, partners, customers, and communities. Maintaining a strong 
health and safety performance represents the Company’s license to 
operate.
POLICIES
The Code of Conduct and Sustainability Policy sets goals and 
commitments for health and safety. REC Silicon follows the strategy that 
all accidents, injuries, and occupational illnesses are preventable. 
REC Silicon aims for every activity to be carried out safely and securely 
and to comply with the highest international health, safety and security 
standards and the prevailing laws and regulations everywhere the 
Company operates. The Company aims for continuous improvement and 
to empower all organizational levels to implement a management 
approach based on the principles of precaution, prevention, protection, 
and risk management. 
ACTIONS AND PLANS
REC Silicon has an extensive set of HSE procedures, safety departments 
at each facility, and employee-driven processes that monitor, audit and 
further develop safety procedures, practices, and protocols. Health and 
Safety actions and plans are continuous efforts that focus on:
•	 Design, engineering practices, administrative controls and  
safe work practices
•	 Personal protective equipment
•	 Educational materials and continuous safety training
•	 Obligation for employees to report all safety concerns
•	 On-site emergency teams and off-site back up response teams
•	 Safe job analysis and hazard recognition audits
•	 Visible safety information in all facilities with updated logs visible  
to all employees
 
Workplace safety and health is communicated to all employees in a 
monthly safety meeting. This meeting provides updated information to 
the employees and a platform for them to raise any concerns. The 
processing of such concerns shall be documented and addressed in the 
subsequent safety meeting. 
REC Silicon requires its suppliers and business partners to share the 
same commitment. The Company monitors the suppliers’ safety records 
annually to ensure that safe work practices are strictly adhered to and 
that all measures to ensure a safe and healthy work environment for 
their employees are taken. Suppliers shall be able to provide records 
upon the request of REC Silicon. 
TARGETS AND PERFORMANCE
The Company has targets for three of the KPIs related to health and 
safety. The performance is benchmarked against the national average 
for REC Silicon’s NAICS industry classification (Non-ferrous metals 
(except aluminium) manufacturing): 
TARGET
TARGET 
VALUE
COMMENT
LTI rate
0
TRIF
0
Serious incidents
0
TRIF < National Industry 
Average
< 100%
NAICS Non-ferrous metal  
(except aluminum) manufacturing
Health and safety performance improved during 2022 with the number 
of lost time injuries dropping by 75% from 2021. The company is also 
well below the national average for its industry, as defined by NAICS 
Sector 331410 and reported by the US Bureau of Labor Statistics. The 
reduction was driven by an increased emphasis on root causes and 
having an on-site PA to manage injuries, as well as closer collaboration 
with employees in understanding the jobs.
The number of Safe Job Analysis fell by 6% year-on-year and the 
Company has a focus in 2023 to reinvigorate this process and get 
employees re-engaged to understand the optionality for doing these 
analyses during normal work hours. The number of Hazard Recognition 
Audits increased by 5% as a total of 20 audits were completed at Moses 
Lake in preparation for the start-up of production.

REC Silicon Annual Report 2022
28
HEALTH AND SAFETY PERFORMANCE
UNIT
2020
2021
2022
% CHANGE 
2022/2021
Man Hours
 
 
 
 
Hours worked
#
531,040
538,758
592,816
10%
Serious incidents (SI)
#
0
0
0
n.m.
Lost time injuries (LTI)
#
2
4
1
-75%
Total recordable injuries (TRI)
#
6
8
8
0%
Serious incidents frequency (SIF)
# / mn hrs
0
0
0
n.m.
Lost time injuries frequency (LTIF)
# / mn hrs
3.8
7.4
1.7
-77%
Total recordable injuries rate (TRIF)
# / mn hrs
11.3
14.8
13.5
-9%
Total fatalities
#
0
0
0
n.m.
National Average TRIF for NAICS Sector 331410 1)
# / mn hrs
16
16
16
REC Silicon TRIF vs National Average
%
71%
93%
84%
Job Safety
Safe Job Analyses
#
334
299
281
-6%
Hazard Recognition Audits
#
414
331
349
5%
Process Safety
Leakages
#
n.a.
n.a.
0
n.m.
Spills
#
n.a.
n.a.
0
n.m.
1	 US Bureacu of Labor Statistics, latest iteration 2020
4.	 SOCIAL MATTERS
REC Silicon relies on a highly skilled workforce to maintain adequate 
performance in its operations. Moreover, with the plans to restart the 
Moses Lake facility, a significant rise in headcount is required and the 
Company needs to ensure that it can attract the right talent and offer 
equal opportunities for all. Furthermore, REC Silicon is a major employer 
in the communities where it operates, contributing jobs and tax income 
and has a responsibility towards community development overall. 
REC Silicon is in a significant recruitment process relating to the start-up 
of the Moses Lake facility, with a 25% growth in the workforce during 
2022. It is essential for the company to be regarded as a safe and fair 
employer to be able to complete its recruitment drive in the coming years.
POLICIES
The Code of Conduct and Sustainability Policy sets goals and 
commitments for equal treatment and human rights. REC Silicon 
commits to internationally recognized human and labor rights standards, 
including:
•	 The International Bill of Human Rights
•	 The UN Guiding Principles on Business and Human Rights
•	 The OECD Guidelines for Multinational Enterprises
•	 The ILO Declaration on Fundamental Principles and Rights at Work
•	 The National Labor Relations Act (NLRA) 
 
These standards are further integrated into other fundamental 
documents of the Company’s internal regulatory system.
The Company strives to provide a working environment that is:
•	 Free from any form of discrimination, abuse, harassment or 
intimidation
•	 Free from discrimination based on gender, race, ethnical  
background, sexual orientation, age, political beliefs, marital  
status, or any other status 
•	 Free from all forms of child labor, human trafficking, modern  
slavery and compulsory or forced labor 
•	 Respective of the freedom of association and collective  
bargaining, as defined by the NLRA
•	 Respective of employees’ rights to freedom of opinion and 
expression, freedom of thought, conscience, and religion
•	 Offering fair working conditions in accordance with all  
applicable legislation to the employees 
•	 Offering training to ensure that the employees conduct  
business ethically, honestly and in compliance with all applicable  
laws and regulations.
 
REC Silicon requires its suppliers and business partners to share the 
same commitment.
Sustainability report

REC Silicon Annual Report 2022 29
Sustainability report
ACTIONS AND PLANS
REC Silicon has ongoing community participation through United Way, 
Relay for Life and Adoption of Families for Christmas. The Company also 
participates in local Emergency Planning Committees. Employees are 
allocated time off to participate in voluntary local community activities.
During the recruiting and hiring phase at Moses Lake, training has been 
implemented to ensure hiring managers understand the philosophy of 
unconscious biases and ensure that we are selecting the most qualified 
candidates regardless of gender, ethnicity, race, or any other factors. All 
of Management in the hiring process are currently subject to ongoing 
training. Ultimately, REC Silicon’s goal is to be the company of choice due 
to its offering of equal opportunities for employees.
In addition, manager core training is being offered to ensure that 
Management gives solid constructive feedback and improve listening 
skills. This is the foundation of building good interplant relationships at  
all levels of the organization. Executive Management supports and 
encourages this type of training initially and on an on-going basis.
TARGETS AND PERFORMANCE
The total workforce increased by 25% during 2022, primarily related  
to the preparations for the restart of Moses Lake, which accounted for 
roughly 70% of the increase in personnel. The gender balance is 
relatively stable, and the company has not succeeded in attracting an 
increased female representation in new hires, apart from a slight 
increase in leadership positions. The female/male pay gap is at 90%, 
which is reasonable, but can be improved.
REC Silicon now reports on a significantly expanded format when it comes 
to its workforce composition. The new data will be considered for future 
actions and plans to address imbalances and future targets. Data for 
training has been compiled on a manual basis for 2022 (5,595 hours in 
total), but the number of training hours are now being tracked automatically 
from 2023 as part of the overall tracking system for the company.
 
WORKFORCE, DIVERSITY, TRAINING
UNIT
2020
2021
2022
% CHANGE 
2022/2021
Number of employees
Total number of permanent employees
#
281
289
360
25%
Temporary employees
#
n.a.
n.a.
5
Non-guaranteed hours employees
#
n.a.
n.a.
0
Total new hires
#
n.a.
n.a.
99
Permanent employee turnover rate
%
n.a.
n.a.
4.6%
Employees - by age
< 30
#
n.a.
n.a.
30
30-39
#
n.a.
n.a.
87
40 - 49
#
n.a.
n.a.
84
50 - 59
#
n.a.
n.a.
114
> 60
#
n.a.
n.a.
50
Employees in total
#
n.a.
n.a.
365
< 30
%
n.a.
n.a.
8%
30-39
%
n.a.
n.a.
24%
40 - 49
%
n.a.
n.a.
23%
50 - 59
%
n.a.
n.a.
31%
> 60
%
n.a.
n.a.
14%
Employees in total
%
n.a.
n.a.
100%
Employees - by gender
Male
#
233
241
306
27%
Female
#
48
48
54
13%
Total
#
281
289
360
25%
Male
%
83%
83%
85%
Female
%
17%
17%
15%
Total

REC Silicon Annual Report 2022
30
Sustainability report
WORKFORCE, DIVERSITY, TRAINING CONTINUED
UNIT
2020
2021
2022
% CHANGE 
2022/2021
Gender balance
Employees (women share of total)
%
17%
17%
15%
Leadership positions (women share of total)
%
25%
14%
17%
Executive management positions (women share of total)
%
n.a.
n.a.
20%
New hires (women share of total)
%
n.a.
n.a.
15%
Board of Directors (women share of total)
%
50%
40%
60%
Earnings ratio - base salary (women:men)
%
n.a.
n.a.
90%
Employee training
Average training hours per employee per year
#
n.a.
n.a.
19
Local community interaction
Donations to Local Communities
USD
23,000
1,250
33,905
- Contribution by employees
%
33%
62%
35%
Volunteer hours to programs and charitable organizations
#
900
611
600
5.	 BUSINESS CONDUCT
REC Silicon’s ambition is to operate in an ethical manner based on legally 
sound business practices in all respects. The Company sets high 
standards of integrity and believes that a sound business must be based 
on value-based management and clear guidelines on ethics and 
sustainability. REC Silicon creates value by supporting a competitive 
market, operating fairly, and fighting illegal practices.
POLICIES
The Code of Conduct and Sustainability Policy sets goals and 
commitments relating to:
•	 Anti-corruption and bribery
•	 Governance, including cooperation with authorities, political 
contributions, conflicts of interest, confidential information  
and intellectual property and whistle blowing.
•	 Supply chain management
 
The Company has zero tolerance for any form of corruption, without 
exception, and supports the ten principles of the UN Global Compact and 
the OECD Guidelines for Multinational Enterprises. REC Silicon is also 
subject to the US Foreign Corrupt Practices Act.
The ethical and reputational reliability of potential business partners are 
ascertained before any business relationship is entered into and all are 
asked to comply with and share REC Silicon’s anti-corruption principles. 
Supply chain audits are undertaken to ensure compliance with the 
standards, as well as on human rights.
Non-compliance with the anti-corruption and bribery regulations are 
regarded as a serious violation and a disciplinary matter. Employees are 
protected against any sanctions from REC Silicon or any representative 
of the Company for refusing to participate in any action that is or can be 
perceived as corruption, bribery, or facilitation payment.
REC Silicon has a whistle-blower service, and all employees have a right 
and duty to report any violations of the principles of the Code of 
Conduct. Information shared through the whistle-blower process will be 
shared only with those who have a need to know and will be kept 
confidential within the enforcement of the Code of Conduct.
ACTIONS AND PLANS
Although REC Silicon has conducted supplier audits for several years, 
the Company plans to develop a Supplier Code of Conduct during 2023, 
which will formalise the general principles of the Company when it comes 
to health and safety and human and labor rights. Suppliers will be 
required to sign this document and the Company will conduct regular 
audits to ensure compliance with the obligations of suppliers.
As a Norwegian domiciled company, REC Silicon is subject to the 
requirements of the 2022 Norwegian Transparency Act, which has been 
established to ensure that companies respect basic human rights and 
decent working conditions.
The Act sets requirements for Norwegian companies to establish a 
systematic and integral process to ensure the above is the case 
throughout its supply chain. Companies are required to conduct an 
annual due diligence process to assess related impacts and risks in the 
supply chain and to publish a publicly available report of the findings. 
Companies are also required to answer any questions from the public 
regarding basic human rights and decent working conditions in its supply 
chain in writing. Pursuant to the Act, REC Silicon will publish its annual 
Transparency Report within 30th June 2023 and make the report 
available in the Corporate Governance section at its website.

REC Silicon Annual Report 2022 31
Sustainability report
TARGETS AND PERFORMANCE
REC Silicon has zero tolerance for corruption and human rights violations and our targets are therefore aligned with this. The entire workforce has 
been trained on human rights and anti-corruption matters, and we are pleased that there have been no incidents of human rights violations, nor 
corruption incidents, during the past three years.
Supplier audits were largely postponed during the Covid-19 years, but the company has now established a plan to get these back on track during 2023. 
BUSINESS CONDUCT
UNIT
2020
2021
2022
Human rights and corruption
 
 
 
 
On-site audits of suppliers on human rights
#
0
3
0
Self-directed audits of suppliers on human rights
#
0
0
0
Human rights violations recorded
#
0
0
0
Proportion of workforce completed human rights training
%
n.a.
n.a.
100%
Proportion of workforce completed anti-corruption training
%
n.a.
n.a.
100%
Anti-corruption violations recorded
#
0
0
0
Whistleblower incidents recorded
#
0
0
 0

REC Silicon Annual Report 2022
32
Sustainability report
GOVERNANCE
Describe the board’s oversight of climate-related 
risks and opportunities
The Board of Directors considers climate-related matters when reviewing and guiding strategy, risk management 
policies and business plans, as well as setting performance objectives. Climate-related risks are part of the overall risk 
framework for the Company and are reviewed regularly by the Board and at least quarterly. Climate-related opportunities 
are reviewed frequently and are considered particularly relevant as the Company is part of the value chain for the 
fast-growing solar PV industry. In yearly meetings, the Board will consider progress towards climate-related goals and 
targets, relevant policy frameworks and set new performance goals and targets, where relevant.
Describe the management’s role in assessing and 
managing climate-related risks and opportunities
Project and operational risks are reported monthly to the management along with related KPIs and are considered by the 
executive management at least quarterly. Climate-related opportunities are managed as part of the Company’s ongoing 
business and strategy. The responsibilities are distributed across the management level, with a separate function 
responsible for oversight of sustainability in general, including climate-related risks and opportunities. A full overview of 
all sustainability matters, including climate-related risks and opportunities, are presented to the Board of Directors once 
a year for approval in preparation for the annual- and sustainability reports.
STRATEGY
Describe the climate-related risks and  
opportunities the organization has identified  
over the short, medium and long term
See risks and opportunity table on page 21. REC Silicon defines short term as 0-2 years, medium term 3-5 years and 
long term more than 5 years. This is in line with the time horizons specified in the draft ESRS of the EU Corporate 
Sustainability Reporting Directive (CSRD). The process to determine which of the climate-related risks and opportu-
nities that could have a material financial impact has been integrated into the Company’s overall strategic plan, which 
involves re-starting the Moses Lake facility to capture growth opportunities in the Solar PV industry and in sourcing  
raw materials from low-carbon suppliers to lower the life-cycle carbon footprint of the Company’s products.
Describe the impact of climate related risks and 
opportunities on the organization’s business, 
strategy and financial planning
The transition to a low-carbon society involves the electrification of energy supply, as well as digitalization of society. 
The Company supplies polysilicon, which is a key input in both solar PV panels and in semiconductors and is therefore an 
integral part of the “green transition”. The strategy is therefore to aggressively pursue growth in these industries. REC 
Silicon is committing substantial financial resources to re-start the Moses Lake facility, securing financing both from 
external sources and through commercial arrangements as part of the financial planning process. The Company’s value 
chains are energy- and emission intensive and it is therefore strategically imperative to minimize production related 
GHG emissions. The Company follows a clear strategy to significantly grow its production of low-carbon polysilicon and 
silane gases, as part of an industry-wide effort.
Describe the resilience of the organization’s 
strategy, taking into consideration different 
climate-related scenarios, including a 20C or lower 
scenario
The Company has undertaken scenario analyses for the demand for the solar PV industry, as part of its long-term 
strategy. In particular, the various scenarios published by the International Energy Agency (IEA) have been considered 
to inform the Company’s strategy with regards to growth opportunities, as well as the need to secure access to raw 
materials and inputs, as well as energy sources, that are resilient to both physical and transition risks. Tighter scenarios 
involving global warming in line with the Paris Agreement (1.50C) is likely to provide substantial growth opportunities for 
the Company’s products targeting the solar PV industry. Looser scenarios implying increased levels of global warming 
are also likely to result in significant market growth for the Company’s products. In both cases, the high energy intensity 
of the operations expose the Company to risks related to energy prices in general, and carbon taxes on fossil fuel  
sources in particular. This is primarily managed through focusing capacity expansion on production processes that  
consume significantly less energy than conventional methods. This reduces the carbon footprint of the Company’s 
products by more than 70% compared to conventional polysilicon. Overall, the Company believes its strategy is resilient 
towards climate-related risks and opportunities.
TCFD DISCLOSURES 2022

REC Silicon Annual Report 2022 33
Sustainability report
RISK MANAGEMENT
Describe the organization’s processes for  
identifying and assessing climate-related risks
Risks of a more strategic nature are identified and assessed through continuous stakeholder dialogue and participation 
in collaboration and initiatives across the value chain. In general, it involves mapping of supply chains to ensure access 
to low-carbon raw materials and a high degree of renewable energy sources. Operational climate-related risks are iden-
tified and assessed continuously as part of the risk management system. The risk management system is in the process 
of being ISO 14001 certified, expected to be completed during 2023, which will include a continuous improvement plan.
Describe the organization’s processes for  
managing climate-related risks
The key strategic risk element is to ensure low-carbon raw materials and energy sources. Raw materials are sourced 
through long-term frame agreements with key suppliers that are chosen on the basis of security of supply and low car-
bon footprints. Energy for the production processes is, where possible, secured from renewable sources, such as hydro-
power. Generic risks related to operations are managed as part of the overall safety and risk management system.
Describe how processes for identifying,  
assessing and managing climate-related risks  
are integrated into the organization’s overall  
risk management
Generic risks are managed at group level through the general risk management system, including physical climate 
risks like adverse weather and water scarcity. Longer term risks, like transition risks, are part of the overall strategic 
framework of the Company and are integrated into long-term planning, along with the corresponding climate-related 
opportunities.
METRICS AND TARGETS
Disclose the metrics used by the organization to 
assess climate-related risks and opportunities 
in line with its strategy and risk management 
process
The key metric used is Scope 1 + 2 GHG emissions per ton of product produced. This also involves sub metrics such  
as energy intensity per ton of product produced and the percentage of renewable energy used in production.  
Scope 2 emissions are market based. The GHG emissions are calculated in line with the GHG Protocol.
Disclose Scope 1, Scope 2, and, if appropriate, 
Scope 3 GHG emissions, and the related risks
GHG emissions have been reported annually since 2011 (Scope 1 + 2). See Climate Disclosures in this report.  
The Company has also committed to assess its upstream Scope 3 emissions within 2027.
Describe the targets used by the organization to 
manage climate-related risks and opportunities 
and performance against targets
The Company has a target to reduce the GHG intensity of its production (Scope 1 and 2) by 40% by 2027 with 2021 as the 
baseline. The Company is starting a process to map its upstream Scope 3 emissions and will consider setting targets 
relating to this in the future.

REC Silicon Annual Report 2022
34
Sustainability report
CLIMATE RELATED RISKS
RISK TYPE
CLASSIFICATION
DESCRIPTION
LIKELIHOOD
MITIGATION
TIMEFRAME
Acute
Increased severity and frequency of extreme 
weather like storms and drought leading to  
disruption of operations, supply of raw  
materials and energy supply 
More likely than 
not
•	 Emergency response preparedness
•	 Risk management systems
•	 Inventory management
•	 Energy market analysis and sourcing strategy
MT ->
Chronic
Water scarcity affecting operations 
 
About as likely 
as not
•	 Reduce water intensity of operations
LT
Policy and legal
Higher carbon pricing levels impacting the cost 
of natural gas and electricity from non-renewa-
ble sources 
 
 
Very likely
•	 Energy efficiency improvements
•	 Focus production on the FBR technology,  
which consumes 80%-90% less energy than  
the Siemens method
•	 Source electricity from renewable sources
MT ->
Restrictions on emission levels 
 
Likely
•	 Ensure production is energy efficient and  
low carbon
MT ->
Transportation costs increase due to higher 
carbon prices 
Likely
•	 Conscious supplier choices
•	 Fossil-free transportation solutions
MT ->
Technology
Polysilicon is replaced as a key conducting mate-
rial in the electronics or solar industry with other 
solutions that are less energy intensive 
About as likely 
as not
•	 Explore alternative uses for polysilicon
•	 Develop silane gas as battery anode material
LT
Market
Buyers of polysilicon continue to require lower 
embodied carbon emission of polysilicon, which 
may impact the operations at Butte, which has a 
high carbon footprint 
Very likely
•	 Energy efficiency improvements at Butte
•	 Use renewable electricity at Butte
•	 Source raw materials from low-carbon  
producers
MT ->
Reputation
Stigmatization of industry sectors with high 
energy usage and emissions 
More likely 
than not
•	 Focus products on sectors driving or enabling 
the green shift
LT
Time Horizons: ST (short-term) 0-2 years, MT (medium term) 3-5 years, LT (long term) More than 5 years
Physical
Transition

REC Silicon Annual Report 2022 35
Sustainability report
CLIMATE RELATED OPPORTUNITIES
OPPORTUNITY TYPE
DESCRIPTION
LIKELIHOOD
DRIVER
TIMEFRAME
Energy efficiency
Use the FBR technology to produce polysilicon, 
this technology requires 80%-90% less energy 
per ton of product than the Siemens technology 
(90% of world production) 
Very likely
•	 Restart production from Moses Lake facility  
in Q4’23 (solely FBR production
•	 Secure long-term offtake contracts with  
solar industry
ST ->
Product quality
Produce higher purity polysilicon from the Butte 
facility to capture more positive end-product 
impact relative the resources and inputs used 
Very likely
•	 Improvement programs at the Butte facility
Reuse of raw  
materials
Reuse solid waste from processing 
 
 
 
 
 
Very likely
•	 R&D into alternative uses for the solid waste 
created from processing MGS into silane and 
polysilicon
•	 Improve system for container tracking
•	 Establish initiatives for plastics use reduction 
and recycling
LT
Lower emission  
sources
Source electricity required in production  
from renewable energy sources 
 
 
Very likely
•	 Moses Lake facility has access to hydropower
•	 Purchasing green energy certificates for Butte 
production
•	 Energy market analysis and sourcing strategy
MT ->
Source MGS from suppliers with access to  
renewable energy 
 
Very likely
•	 Direct purchasing volumes to producers of low-
carbon MGS
•	 Require suppliers to switch to renewable energy
MT ->
Diversification
Develop silane gas as anode material for battery 
storage solutions, particularly for EV industry 
 
 
Likely
•	 Collaborate with battery storage providers to 
develop solutions
MT ->
Solar PV industry
Capture the substantial growth in the  
deployment of solar panels as a key renewable 
energy source 
 
Very likely
•	 Restart Moses Lake
•	 US regulatory initiatives (such as the Inflation 
Reduction Act)
•	 Low-carbon value chain
ST ->
Semiconductor  
industry
Capture the substantial growth associated  
with the digitalization of society 
Very likely
•	 Production efficiency improvements at Butte
•	 US regulatory initiatives (such as the CHIPS Act)
MT ->
Energy transition
Firmly placed in value chains that are key  
enablers in the energy transition 
 
 
 
Very likely
•	 Continue to develop capacity in line with  
market growth
•	 Continuous improvement to reduce  
negative impacts of production processes  
and downstream distribution 
ST ->
Time Horizons: ST (short-term) 0-2 years, MT (medium term) 3-5 years, LT (long term) More than 5 years
Resource efficiency
Energy sources
Products  
and services
Markets
Resilience

REC Silicon Annual Report 2022
36
REC Silicon ASA (the “Company” or “REC Silicon”) and its 
subsidiaries (together REC Silicon Group/the Group), 
endorses the Norwegian Code of Practice for Corporate 
Governance (Code of Practice) issued by the Norwegian 
Corporate Governance Board, most recently revised on 
October 14, 2021.
1.	 IMPLEMENTATION AND REPORTING ON CORPORATE 
GOVERNANCE 
The Board of Directors of REC Silicon (“Board”) has prepared the 
following report that explains the Group’s corporate governance 
practices and how it has complied with the Code of Practice in the 
preceding year. The application of the Code of Practice is based on the 
“comply or explain” principle and deviations from the code, if any, is 
explained under the relevant item. The Group’s corporate governance 
practices are subject to annual reviews and discussions by the Board. 
REC Silicon Group deviated from the recommendations in the Code of 
Practice on two sections at year-end 2022. These deviations pertained 
to separate proxy voting for candidates to the Board (Section 6) and 
separate regulations for takeover bids (Section 14).
The following sections provides a discussion of the company’s corporate 
governance in relation to each section of the Code of Practice.
2.	 BUSINESS 
REC Silicon believes the solar industry plays a key role as a long-term 
supplier of sustainable energy and its business is focused on the 
production of polysilicon and silicon gases for the solar and electronics 
industries. To make solar electricity competitive with traditional energy 
sources, the Group focuses on product improvements and cost 
reductions through the introduction of new process and product 
technologies as well as continuous productivity enhancement and 
technology development.
The Group’s business corresponds with the purpose of the Company 
which is described in its Articles of Association § 3: “The Company’s 
purpose is development and sale of products and services related to 
renewable energy sources, and to perform other financial operations 
related to such. The Company may, through subscription of shares or in 
any other ways, including granting of loans, acquire interests in other 
companies with identical or similar purposes”. 
The Board has defined clear strategies, business goals and risk profile 
for the Group’s business activities, to create value for its shareholders in 
a sustainable manner considering financial, social and environmental 
factors. This includes efficient and responsible utilization of resources 
to the benefit of all its stakeholders.
 Sustainability is at the core of REC Silicon’s business model and the 
Company acknowledges its responsibilities toward the environment, 
society and the local communities in which it operates. The Board carries 
the responsibility to secure acceptable sustainability performance and 
has implemented various policies providing business practice guidance 
and reporting procedures to ensure continuous improvement. An 
account of the Company’s sustainability performance is included in the 
ESG report in the annual report.
The Group’s strategies, business goals and risk profile are reviewed on 
an annual basis and presented in the annual report, quarterly reports, 
and at various investor meetings.
3.	 EQUITY AND DIVIDENDS 
The Group’s consolidated equity was USD 60.4 million at December 31, 
2022, which represented 18.9 percent of total assets. The debt-to-
equity ratio was 4.3. The Board monitors the Group’s capital structure 
and takes actions necessary to ensure that it is appropriate for the 
current objectives, strategy, and risk profile. Reference is also made to 
the consolidated financial statements note 3.3 regarding capital 
structure and financing and note 3.1 regarding financial risk and to the 
report of the Board.
Board of Directors’ report on 
Corporate Governance
Board of Directors’ report on corporate governance

REC Silicon Annual Report 2022 37
The Group’s ambition is to give its shareholders a high and stable return 
on their investment and to be competitive compared with alternative 
investment opportunities with comparable risk. To support committed 
investments and productivity improvements, the Board’s view so far has 
been that retained earnings should be used within the Company. 
Accordingly, there has been no distribution of dividends to the 
shareholders since the Company was publicly listed in 2006, and no 
proposed dividend payments for the financial year 2022.
The Board will continue to assess the capital structure based on the 
goals, strategies, risk profile, and the financial situation of the Company. 
At the Annual General Meeting (AGM) on June 22, 2022, the Board was 
granted the following authorities: 
•	 Authority to increase the share capital with up to NOK 84,125,000 
through one or several share capital increases. The authorization to 
acquire shares may be used for one or more of the following purposes: 
-	
in connection with investments, acquisitions, or other corporate 
purposes
-	
for use for incentive programs for employees 
•	 Authority to acquire treasury shares in the Company (up to a 
maximum of ten percent of the face value of the share capital).  
As of December 31, 2022, the authorization has not been used. 
 
These authorities were restricted for defined purposes and each 
mandate was considered separately. They are valid until the AGM in 
2023 or no later than 15 months from the date of the 2022 AGM. 
For further information about the mandates given to the Board, 
reference is made to the minutes from REC Silicon’s 2022 AGM  
and EGMs, which are available on the Company’s website  
(www.recsilicon.com).
4.	 EQUAL TREATMENT OF SHAREHOLDERS AND 
TRANSACTIONS WITH CLOSE ASSOCIATES 
The Company seeks to conform to the principles for equal treatment  
of shareholders. In the event of a share capital increase based on 
authorization from the general meeting, where the pre-emptive rights  
of shareholders are set aside, grounds will be provided in the stock 
exchange notice in which the share capital increase is announced.
In the event of a share buy-back program, the Board will aim to ensure 
that all related transactions are carried out either through the trading 
system or at prevailing prices at Oslo Børs. The Board will consider 
company’s and shareholders’ interests and aim to maintain transparency 
and equal treatment of all shareholders. In the event of limited liquidity 
in the Company’s shares, the Company shall consider other ways to 
ensure equal treatment of all shareholders. There were no transactions 
in own shares during 2022.
5.	 FREELY NEGOTIABLE SHARES 
REC Silicon has one class of shares and each share confers one voting 
right at the General Meetings. The Company’s shares are listed on the 
Oslo Stock Exchange, where they are freely transferable. There are no 
restrictions on owning, trading or voting for shares in the Articles of 
Association.
6.	 GENERAL MEETINGS 
The Board shall ensure that as many of the Company’s shareholders as 
possible are able to exercise their voting rights at the Company’s general 
meetings, and that the general meeting is an effective forum for 
shareholders and the Board. Extraordinary general meetings (EGM) can 
be called by the Board of Directors if deemed necessary or be requested 
by the company’s auditor or shareholders representing at least 5% of 
the company’s share capital. 
Notification
The Board of Directors ensures that the resolutions and supporting 
information distributed are sufficiently detailed, comprehensive and 
specific, allowing shareholders to form a view on all matters to be 
considered at the meeting. The notice of the General Meeting and 
supporting documents are made available on the Company’s website no 
later than 3 weeks prior to the date of the meeting. The deadline for 
shareholders to give attendance notice is set as close to the date of the 
meeting as possible, and minimum 5 days prior to the General Meeting.
Shareholders may request that specific matters be considered by a 
general meeting by written notice to the Board within 7 days prior to the 
time limit for notice of the General Meeting together with a proposal for 
resolution and reasons why the matter is proposed for consideration. If 
the notice has already been distributed, a new notice shall be distributed 
if the time limit for notice to the General Meeting has not expired.
Participation and execution
The Chairman of the Board, the Board members, the auditor, and the 
members of the Nomination Committee are normally present at the 
General Meeting. All Board members are encouraged to attend the 
meeting.
The Chairman of the Board nominates an independent chair for election 
to lead the meeting.
The right to participate and vote at the general meeting may only be 
exercised by shareholders whose shareholdings are entered in the 
Norwegian Central Securities Depository (the “VPS”), on the fifth day 
prior to the general meeting, as stipulated by the Articles of Association 
in accordance with statutory law. Instead of participating at the general 
meeting, shareholders may vote in advance or grant a proxy, with or 
without voting instructions as further described in this notice.
The AGM is held by the end of June every year in the municipality where 
the Company has its registered business address or in Oslo. If required, 
the Board may hold the AGM digitally. The 2022 Annual General Meeting 
was held digitally on June 22, with 39.67% of the Company’s shares 
represented.
Board of Directors’ report on corporate governance

REC Silicon Annual Report 2022
38
On May 2, 2022, the Board called for an EGM in connection with the 
election of new members to the Board of Directors, with 35.79% of the 
shares represented. 
On October 21, 2022, the Board called for an EGM in connection with 
the election of new members to the Board, with 45.93% of the shares 
represented.
On December 1, 2022, the Board called for an EGM in connection with 
the election of an additional member to the Board, with 40.54% of the 
shares represented.
Deviation from the Code of Practice 
The Code recommends separate voting for candidates to the Board. 
However, it is not possible to vote separately on each candidate 
nominated to the Board because the composition of the Board must be 
in accordance with applicable legislation regarding gender 
representation and qualifications for committee assignments. The 
nomination committee’s proposal is given with respect to such 
legislation. Should a situation arise where the composition of the Board 
might conflict with applicable legislation, the situation, and 
consequences of electing a board contrary to legislation should be 
discussed at the General Meeting and shareholders should base their 
votes on the views discussed. 
7.	 NOMINATION COMMITTEE 
The Nomination Committee is governed by the Articles of Association 
section 6. The AGM on June 22, 2022, elected the following three 
members for the Nomination Committee for the period until the AGM in 
2023: Mr. Junghey Chae (chair), Dr. Sungchoon Kang, and Dr. Jieun Lee. 
The nomination committee does not include any executive personnel or 
any member of the Board. Mr. Junghey Chae is an employee of the 
Company’s main shareholders. The remaining members of the 
Nomination Committee are independent of the Board and Group 
Management.
The General Meeting stipulates the rules of procedure for the 
Nomination Committee and determines the Committees’ remuneration. 
The Nomination Committee gives its recommendation to the General 
Meeting on election of and compensation to members of the Board, in 
addition to election of members of the Nomination Committee. Each 
proposal is justified on an individual basis. All shareholders are entitled 
to nominate candidates to the Board, and information on how to propose 
candidates can be found on the Company’s website.
8.	 BOARD OF DIRECTORS: 
COMPOSITION AND INDEPENDENCE 
Pursuant to the Articles of Association section 6, the Company’s Board 
shall consist of three to twelve members. On 31 December 2022, the 
Board consisted of five members (see table below), of which three were 
female and independent from the main shareholders. The directors are 
elected by the General Meeting for a term of one year and may be re-
elected. 
The EGM on May 2, 2022, elected Mr. Koo Yung LEE as chair, Mr. Maeng 
Yoon KIM as deputy chair, Dr. Renate Oberhoffer-Fritz, and Ms. Heike 
Heiligtag, to replace Kristian Monsen Røkke as chair, Anette Malm 
Justad as deputy chair, Audun Stensvold, Lene Landøy, and Mr. Seung 
Deok PARK. 
The EGM on October 21, 2022, elected Mr. Tae Won JUN (chair), Mr. 
Dong Kwan KIM (deputy chair), and Ms. Paraskevi (Vivian) Bertseka, to 
replace Mr. Koo Yung LEE as chair, Mr. Maeng Yoon KIM as deputy chair, 
and Ms. Heike Heiligtag subsequent to her prior resignation. Dr. Renate 
Oberhoffer-Fritz was retained from the prior Board. 
The EMG on December 22, 2022, elected Ms. Roberta Benedetti as a 
fifth Board member.
Overview of the Board at December 31, 2022:
NAME
ROLE
CONSIDERED 
INDEPENDENT 
OF MAIN 
SHAREHOLDERS
INDEPENDENT OF 
GROUP MANAGEMENT 
AND MATERIAL 
BUSINESS CONTACTS
SERVED SINCE
TERM EXPIRES
PARTICIPATION 
BOARD MEETINGS 
2022
Tae Won JUN
Chair (from 21 October 2022)
No
Yes
21-Oct-2022
AGM 2023
1 of 7
Dong Kwan KIM
Board Member
No
Yes
21-Oct-2022
AGM 2023
1 of 7
Dr. Renate Oberhoffer-Fritz
Board member
Yes
Yes
02-May-2022
AGM 2023
4 of 7
Paraskevi (Vivian) Bertseka
Board member
Yes
Yes
21-Oct-2022
AGM 2023
 1 of 7
Roberta Benedetti
Board Member
Yes
Yes
22-Dec-22
AGM 2023
0 of 7
Board of Directors’ report on corporate governance

REC Silicon Annual Report 2022 39
All members of the Board are considered independent of the Company’s 
executive management and material business contacts. 
The Company’s annual report and the website provides information to 
illustrate the expertise of the members of the Board. The Board 
considers its composition to be diverse and represent required 
competencies including financial and industrial experience. Board 
members are encouraged to own shares in the Company. An overview  
of Board members’ share ownership in the Company is available in note 
16 to the consolidated financial statements. 
9.	 WORK OF THE BOARD OF DIRECTORS 
The Board has the ultimate responsibility for the management of the 
Company and the Group and for supervising Group Management. 
The Board has adopted “Rules of procedures for the Board of Directors,” 
which regulates the Board’s responsibilities, duties, and administrative 
procedures as well as the tasks and duties of the Chief Executive Officer. 
The Board has also adopted a Chart of Authority regulating matters that 
are to be decided by the Board and matters that may be decided by 
Group Management. The Chart of Authority distinguishes between 
investment decisions, customer contracts, procurement contracts, 
compensation, and finance and is reviewed on an annual basis. The Board 
holds at least one meeting per year with the auditor and without any 
members of Group Management or administration present. 
The Board has adopted guidelines to ensure it is informed of and how  
to handle potential transactions and matters to be considered by the 
Board, in which members of the Board, Group Management or close 
associates are involved. The Board must review and approve all 
transactions between the Group and Group Management or the Board.
The Company uses independent third-party valuations in case of 
significant transactions with closely related parties which are not to  
be considered by the General Meeting. There was one agreement 
announced in 2022 between the Group and its shareholders, directors, 
Group Management or other related parties that could be described as  
a material transaction. Details on the related-party transaction are 
disclosed in the consolidated financial statements, note 10. 
The Board has established two committees: an Audit Committee and  
a Compensation Committee. 
Audit Committee 
The Company’s Audit Committee is governed by the Norwegian Public 
Limited Liability Companies Act and the Audit Committee Charter, which 
sets out the tasks and rules of procedure of the Committee. 
The Committee members are appointed by and among the Board of 
Directors. At December 31, 2022, the Audit Committee members were 
Dr. Renate Oberhoffer-Fritz, Ms. Paraskevi (Vivian) Bertseka. On 
February 22, 2023, Roberta Benedetti was appointed by the Board of 
Directors as an additional member of the Audit Committee. The Audit 
Committee held 6 meetings in 2022. 
The Audit Committee supports the Board with the assessment and 
control of financial risk, financial reporting, auditing, control, and prepares 
discussions and resolutions for Board meetings. It has no decision-making 
authority. The Audit Committee reviews complaints regarding accounting, 
internal controls, and auditing matters. In addition, under the whistle-
blower procedure, complaints from employees and other concerned 
parties are received and followed up by the Audit Committee.
The Audit Committee makes recommendations to the Board with 
respect to the Group auditor and the auditor’s fees, as assessing the 
auditor’s independence, including considering any non-audit-related 
services provided.
Compensation Committee 
The Compensation Committee is governed by the Norwegian Public 
Limited Liability Companies Act and the Compensation Committee 
Charter, which sets out the tasks and procedures of the Committee. The 
Compensation Committee members are appointed by and among the 
Board of Directors. At December 31, 2022, the Compensation 
Committee members were Tae Won JUN and Dong Kwan KIM, both 
independent of the Group Management. During 2022, the Compensation 
Committee met three times.
The Compensation Committee supports the Board by preparing 
resolutions on the terms and conditions of employment for the Chief 
Executive Officer and the general principles and strategies for 
compensation of Group Management including bonus and share based 
compensation as well as other personnel matters.
10.	RISK MANAGEMENT AND INTERNAL CONTROL
The Group’s risk management system shall ensure that the Group has a 
systematic and uniform approach to risk management. The system 
defines roles, responsibilities, processes and procedures, standards, 
tools and documentation, including considerations related to integrating 
stakeholders in relation to the Company’s value creation. 
Group Management sets the context in which risks are managed and 
supervises the risk management process. Group Management performs 
separate risk evaluations based on a top-down approach. Risk 
assessments are presented to the Audit Committee and the Board. The 
Board performs a review of risks in connection with the approval of the 
annual budget.
Group Management regularly updates the Board including operational 
reviews, HSE (Health, Safety and Environment) measures, financial 
highlights and key performance indicators. Prior to each Board meeting, 
the Chief Executive Officer prepares a report to the Board, which 
includes this information in addition to any items requested by Board 
members and items requiring action by the Board. The Chief Executive 
Board of Directors’ report on corporate governance

REC Silicon Annual Report 2022
40
Officer also has pre-meetings and informal discussions with the Board 
throughout the year. 
Because the Group operates internationally, it is required to comply with 
numerous national and international laws and regulations. All business 
activities and processes must be conducted in accordance with laws, and 
regulations. 
To strengthen internal control, the Group has established an 
Anticorruption Policy and procedures, provided training to employees 
and managers, and performed a fraud risk assessment. Whistleblower 
complaints and other internal control activities are presented to the 
Audit Committee according to the Audit Committee charter. 
To ensure consistent financial reporting throughout the Group, financial 
information is reported through a computerized financial reporting 
system utilizing a common chart of accounts and procedures designed 
to ensure the consistency of information reported. Subsidiaries 
accumulate transactional information, period end balances, and 
performance statistics through ERP systems designed to meet the 
business requirements of each operation. Quarterly and year-end 
reporting processes are expanded to meet various supplementary 
requirements. 
The quarterly and yearly reporting process and significant accounting 
and reporting issues are discussed with the Audit Committee in the 
presence of the external auditor. 
The Group’s financial risk management is described in the consolidated 
financial statements (note 3). Reference is also made to the Board of 
Directors’ report that includes an analysis of the financial statements 
and the risk factors. 
11.	REMUNERATION OF THE BOARD OF DIRECTORS 
The members of the Board receive remuneration in accordance with 
their individual roles. Prior to May 12, 2020, Board members who 
participate in the Audit Committee or the Compensation Committee 
received additional compensation. 
Board remuneration is not linked to Company performance and members 
are not granted share options. 
Details on the remuneration of the Board of Directors are disclosed in 
the consolidated financial statements (note 16). 
Members of the Board and/or companies with which they are associated 
should not take on specific assignments for the Company in addition to 
their appointment as a member of the Board, but if they do, this shall be 
disclosed to the full Board. The remuneration for such additional duties 
will be approved by the Board. There were no such assignments in 2022.
12.	REMUNERATION OF THE GROUP MANAGEMENT 
The guidelines for salary and other compensation to Executive 
Management was presented at the AGM in June 2022. The policy was 
last updated in 2022 and was approved by the general meeting. The 
Board determines remuneration of the Chief Executive Officer while 
remuneration of Group Management is determined according to 
guidelines. The Board’s statement regarding compensation of leading 
employees, required by accounting act act §7-31b, is included in note 16 
of the consolidated financial statements. 
The remuneration of the Group Management consists of a basic salary, 
relevant additional benefits and membership in the Company’s pension 
and insurance schemes. The remuneration also includes performance 
bonuses for selected individuals based on an annual performance related 
compensation system. In addition, the Board has adopted an incentive 
program for retaining key personnel. The performance bonuses are linked 
to the Group’s financial performance and defined KPI’s over time and 
includes incentives related to performance the employees can influence. 
There are absolute limits for the performance-related remuneration, 
where maximum performance bonus pay-out for the management varies 
between 25 and 50 percent of the annual basic salary. 
Details on the remuneration of the Chief Executive Officer and other 
members of Group Management are disclosed in the consolidated 
financial statements (note 16). 
The Board extended the long-term incentive program for retaining key 
personnel, whereby employees’ entitlements are linked to the share price 
development of the Company’s shares. The share-based program was 
introduced in 2014 and includes a lock-up period for shares awarded and 
an absolute limit for the maximum gain in each calendar year, however, no 
shares were issued in 2022. Further details on the incentive program is 
disclosed in note 32 of the consolidated financial statements. 
The 2022 AGM voted separately on the compensation to leading 
employees and the statement regarding long-term incentive plans. 
13.	INFORMATION AND COMMUNICATION
The Company treats its investors equally. Timely information is published 
simultaneously to all investors in accordance with applicable legislation 
and regulation in order to provide the best possible basis for evaluation 
of Company performance. All information is provided in English. 
The Board adopted an Investor Relations (IR) policy specifying, among 
other things, who is entitled to speak on behalf of the Company on 
various subjects and with guidelines for the Company’s contact with 
shareholders other than through General Meetings. 
Interim reports are published on a quarterly basis, in line with Oslo Stock 
Exchange’s recommendations. Interim reports include presentations to 
provide an overview of operational and financial developments, market 
outlook, and the Company’s prospects. The presentations are open to 
the public and made available through a webcast. The Chief Executive 
Officer, the Chief Financial Officer and the IR Officer are normally 
present at the quarterly presentations. Furthermore, the Company 
keeps an ongoing dialogue with its investors and makes presentations to 
analysts and investors through various conferences and events. 
Board of Directors’ report on corporate governance

REC Silicon Annual Report 2022 41
The Company observes a “Silent Period” extending from the last day of 
the quarter until operating results are released publicly. During this 
period, Group Management is not available for discussions with 
investors or analysts. The IR Officer is available on a limited basis to 
provide material previously released and to facilitate the collection and 
distribution of consensus forecasts. The Investor Relations function is in 
charge of coordinating the Company’s communications to the market 
and to existing and potential investors of the Company. The IR Officer is 
an independent contractor that reports to the Chief Financial Officer.
14.	TAKE-OVERS 
The Company has no defence mechanism to prevent take-over bids.  
The Board is open to initiatives that are commercially and financially 
attractive for the shareholders. The Board will assess potential offers in 
accordance with applicable legislation and Code of Practice 
requirements in due course. 
Any transaction that effectively constitutes a disposal of a majority of 
the Company’s activities will be decided by the General Meeting. 
Deviation from the Code of Practice
The Board has not established separate guidelines in the event of a take-
over bid as recommended by the Code of Practice. Take-over bids are 
usually specific, one-off, events which makes preparation of guidelines 
challenging. In the event of a take-over process, the Board will ensure 
that the Company’s shareholders are treated equally, and that the 
Company’s activities are not unnecessarily interrupted. The Board will 
further seek to comply with the relevant recommendations from the 
Code of Practice.
15.	AUDITOR 
The Company’s external auditor, KPMG, is appointed by the General 
Meeting and is independent from the Company. 
The auditor participates at Board meetings with respect to the Annual 
Financial Statements. The auditor comments on any material changes in 
the Company’s accounting principles, material estimates used to 
calculate accounting figures, and reports disagreements between the 
auditor and Group Management. 
The auditor presents significant identified weaknesses and proposals 
for improvements of the internal control procedures annually to the 
Board with an annual confirmation that the auditor has satisfied the 
requirements for independence together with a summary of all services 
provided to the Group. The auditor meets with the Audit Committee and 
the Board at least once a year without the Chief Executive Officer or any 
other member of the Group Management present. 
The auditor is also required to participate in meetings of the Audit 
Committee and present the main features of the audit plan to the 
Committee. 
Remuneration of the auditor is approved by the General Meeting.  
The auditor provides a break-down between audit and non-audit 
services, and information is provided to the General Meeting about  
non-audit services provided by the auditor. The Board has issued 
guidelines regarding Group Management’s use of the auditor for  
services other than audit. These guidelines include a list of services  
that are preapproved for fees up to NOK 500,000 and requires audit 
committee approval for all other non-audit services or if fees are more 
than NOK 500,000. For more information about remuneration to the 
auditor, see note 22 to the consolidated financial statements.
The auditor participates at the AGM and presents the independent 
auditor’s report.
Board of Directors’ report on corporate governance

REC Silicon Annual Report 2022
42

REC Silicon Annual Report 2022 43
FINANCIAL STATEMENTS
REC Silicon Group 
& REC Silicon ASA
REC SILICON GROUP
Consolidated statement of financial position
44
Consolidated statement of income
46
Consolidated statement of comprehensive income
47
Consolidated statement of changes in equity
48
Details of consolidated comprehensive income
49
Consolidated statement of cash flows
50
Index of the notes to the consolidated financial statements
51
Notes to the consolidated financial statements
52
REC SILICON ASA
Balance sheet (NGAAP)
96
Income statement (NGAAP)
98
Statement of cash flows (NGAAP)
99
Index of the notes to the financial statements
100
Notes to the financial statements
101

REC Silicon Annual Report 2022
44
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
REC SILICON GROUP
(USD IN MILLION)
NOTES
2022
2021
ASSETS
Non-current assets
Intangible assets
6
1.0
0.9
Land and buildings
6
31.1
33.3
Machinery and production equipment
6
24.6
34.7
Other tangible assets
6
2.7
2.6
Assets under construction
6
62.4
12.5
Property, plant and equipment
6
120.9
83.1
Right of use assets
7
30.4
33.2
Other non-current receivables
12
0.1
0.0
Financial assets and prepayments
0.1
0.0
Total non-current assets
152.3
117.3
Current assets
Inventories
13
38.3
33.1
Trade and other receivables
12
23.2
29.6
Restricted bank accounts
14
0.8
4.4
Cash and cash equivalents
14
105.3
110.5
Total current assets
167.5
177.6
Total assets
319.9
294.9

REC Silicon Annual Report 2022 45
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
REC SILICON GROUP
(USD IN MILLION)
NOTES
2022
2021
EQUITY AND LIABILITIES
Shareholders' equity
Paid-in capital
3,027.7
2,918.2
Other equity and retained earnings
-2,967.3
-2,884.9
Total shareholders' equity
60.4
33.3
Non-current liabilities
Retirement benefit obligations
19
8.6
13.4
Non-current provision, interest calculation
20
19.3
20.2
Non-current financial liabilities, interest bearing
17
4.2
115.2
Non-current lease liabilities
7
65.8
67.9
Other non-current liabilities, not interest bearing
32
1.3
1.6
Total non-current liabilities
99.1
218.2
Current liabilities
Trade payables and other liabilities
20
46.5
29.4
Derivatives
11
0.0
0.0
Current financial liabilities, interest bearing
17
111.0
11.3
Current lease liabilities
7
2.8
2.6
Current prepayments, interest calculation
20
0.1
0.2
Total current liabilities
160.3
43.5
Total liabilities
259.5
261.6
Total equity and liabilities
319.9
294.9
Lysaker, March 23, 2023
Board of Directors
This document is signed electronically.
Tae Won Jun
Chairman of the Board
Dong Kwan Kim
Deputy Chair
Vivian Bertseka
Member of the Board
Roberta Benedetti
Member of the Board
Dr. Renate Oberhoffer-Fritz
Member of the Board
William K. Levens
President and CEO

REC Silicon Annual Report 2022
46
CONSOLIDATED STATEMENT OF INCOME
REC SILICON GROUP
(USD IN MILLION)
NOTES
2022
2021
Revenues 
5
147.8
143.2
Cost of materials 
-27.3
-17.1
Changes in inventories 
-3.8
-8.9
Employee benefit expenses 
16, 24, 32
-44.1
-41.7
Other operating expenses 
22
-107.1
-75.6
Other income and expenses 
23
-0.5
7.9
EBITDA 1)
-34.9
7.7
Depreciation 
6
-19.9
-25.2
Amortization 
6
0.0
0.0
Depreciation of right of use assets 
7
-3.1
-3.0
Impairment 
6, 7, 8
-0.3
-0.3
Total depreciation, amortization and impairment 
-23.4
-28.5
EBIT 2)
-58.3
-20.8
Financial income 
25
1.9
0.1
Net financial expenses 
9, 25
-20.9
-23.6
Net currency gains/losses 
25
-9.7
0.8
Net financial items 
-28.7
-22.7
Profit/loss before tax from continuing operations 
-87.0
-43.5
Income tax expense/benefit from continuing operations 
18
0.0
0.0
Profit/loss from continuing operations 
-87.0
-43.5
Profit/loss from discontinued operations, net of tax 1) 
17, 30
0.1
13.4
Profit/loss from total operations 
-86.8
-30.1
Attributable to:
Owners of REC Silicon ASA 
-86.8
-30.1
Earnings per share (In USD)
From continuing operations 
-basic 
26
-0.21
-0.12
-diluted 
-0.21
-0.12
Earnings per share (In USD)
From total operations 
-basic 
26
-0.21
-0.08
-diluted 
26
-0.21
-0.08
1)	 EBITDA - EBIT excluding depreciation, amortization and impairment.
2)	 EBIT - Profit/loss excluding income tax expense/benefit, net financial items, and profit/loss from investments in associates.

REC Silicon Annual Report 2022 47
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
REC SILICON GROUP
(USD IN MILLION)
2022
2021
Profit/loss
-86.8
-30.1
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans
3.5
4.3
Sum items that will not be reclassified to profit or loss
3.5
4.4
Items that may be reclassified subsequently to profit or loss:
Currency translation differences
0.9
0.0
Sum items that may be reclassified subsequently to profit or loss
0.9
0.0
Total other comprehensive income
4.4
4.3
Total comprehensive income
-82.4
-25.7
Total comprehensive income attributable to:
Owners of REC Silicon ASA
-82.4
-25.7

REC Silicon Annual Report 2022
48
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
REC SILICON GROUP
ATTRIBUTABLE TO EQUITY HOLDERS OF REC SILICON ASA
(USD IN MILLION)
NOTES
SHARE 
CAPITAL
SHARE 
PREMIUM
OTHER PAID-IN 
CAPITAL
TOTAL PAID-IN 
CAPITAL
OTHER 
EQUITY
COMPREHENSIVE 
INCOME
TOTAL 
EQUITY
Year 2021
 At January 1, 2021 
53.6
2,822.7
41.8
2,918.2
539.0
-3,398.2
59.0
 Share issue 
0.0
0.0
0.0
0.0
0.0
0.0
0.0
 Total comprehensive income 
0.0
0.0
0.0
0.0
0.0
-25.7
-25.7
 At December 31, 2021 
53.6
2,822.7
41.8
2,918.2
539.0
-3,423.9
33.3
Year 2022
 At January 1, 2022 
53.6
2,822.7
41.8
2,918.2
539.0
-3,423.9
33.3
 Share issue 
5.5
104.0
0.0
109.5
0.0
0.0
109.5
 Total comprehensive income 
0.0
0.0
0.0
0.0
0.0
-82.4
-82.4
 At December 31, 2022 
59.2
2,926.7
41.8
3,027.7
539.0
-3,506.3
60.4

REC Silicon Annual Report 2022 49
This table presents details of comprehensive income
(USD IN MILLION)
TRANSLATION DIFFERENCES 
THAT CAN BE TRANSFERRED TO 
PROFIT AND LOSS
ACQUISITION
RETAINED 
EARNINGS
TOTAL
Year 2021
Accumulated at January 1, 2021
27.9
20.9
-3,447.0
-3,398.2
Profit/loss
0.0
0.0
-30.1
-30.1
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans
0.0
0.0
4.3
4.3
Currency translation effects 
0.0
0.0
0.0
0.0
Sum items that will not be reclassified to profit or loss
0.0
0.0
4.4
4.4
Items that may be reclassified to profit or loss:
Currency translation differences taken to equity
0.0
0.0
0.0
0.0
Sum items that may be reclassified to profit or loss
0.0
0.0
0.0
0.0
Total other comprehensive income for the period
0.0
0.0
4.4
4.3
Total comprehensive income for the period
0.0
0.0
-25.7
-25.7
Accumulated at December 31, 2021
27.9
20.9
-3,472.7
-3,423.9
Year 2022
Accumulated at January 1, 2022
27.9
20.9
-3,472.7
-3,423.9
Profit/loss
0.0
0.0
-86.8
-86.8
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit plans
0.0
0.0
3.5
3.5
Currency translation effects 
0.0
0.0
0.0
0.0
Sum items that will not be reclassified to profit or loss
0.0
0.0
3.5
3.5
Items that may be reclassified to profit or loss:
Currency translation differences taken to equity
0.9
0.0
0.0
0.9
Sum items that may be reclassified to profit or loss
0.9
0.0
0.0
0.9
Total other comprehensive income for the period
0.9
0.0
3.5
4.4
Total comprehensive income for the period
0.9
0.0
-83.3
-82.4
Accumulated at December 31, 2022
28.8
20.9
-3,556.0
-3,506.3

REC Silicon Annual Report 2022
50
CONSOLIDATED STATEMENT OF CASH FLOWS
REC SILICON GROUP
(USD IN MILLION)
NOTES
2022
2021
Cash flows from operating activities
Profit/loss before tax 1)
-87.0
-43.5
Less: Government grant (forgiveness of C.A.R.E.S. Act Loan)
21
0.0
-8.3
Income taxes paid/received
18
0.0
0.0
Depreciation, amortization and impairment
6, 7, 8
23.4
28.5
Changes in receivables, prepayments from customers etc.
12
5.9
-2.4
Changes in inventories
13
-5.2
7.9
Changes in payables, accrued and prepaid expenses
20
10.9
4.6
Changes in VAT and other public taxes and duties
20
0.0
-0.6
Currency effects not cash flow or not related to operating activities
25
10.2
-0.7
Other items
22
-0.3
0.0
Net cash flow from operating activities
-42.1
-14.6
Cash flows from investing activities
Proceeds/Payments finance receivables and restricted cash
14
1.1
1.5
Proceeds from sale of property, plant and equipment and intangible assets
6
0.0
0.0
Payments for property, plant and equipment and intangible assets
6
-55.9
-8.3
Net cash flow from investing activities
-54.8
-6.8
Cash flows from financing activities
Proceeds from issue of share capital
15
109.5
0.0
Payments of lease liabilities
7
-2.6
-2.1
Payments of borrowings and up-front/waiver loan fees
17
-8.1
-0.9
Net cash flow from financing activities
98.8
-3.0
Effect on cash and cash equivalents of changes in foreign exchange rates
25
-7.2
0.0
Net increase/decrease in cash and cash equivalents
-5.2
-24.4
Cash and cash equivalents at the beginning of the period
110.5
134.9
Cash and cash equivalents at the end of the period
105.3
110.5
1) PROFIT/LOSS BEFORE TAX FROM CONTINUING OPERATIONS INCLUDES
Interest Paid
-22.0
-22.3
Interest Received
1.9
0.1
1	 Profit/loss before tax from continuing operations does not include non-cash gain from the settlement of the indemnification agreement of USD 13.4 million  
(see notes 17 and 30).

REC Silicon Annual Report 2022 51
INDEX OF THE NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
REC SILICON GROUP
NOTE
PAGE
1	
General information
52
2	
Summary of significant accounting policies
52
3	
Financial risk management
57
4	
Critical accounting judgments and key sources of estimation uncertainty
58
5	
Segment and revenue information
59
6	
Fixed assets
62
7	
Leases
64
8	
Impairments of cash-generating units
66
9	
Investments
69
10	
Related party transactions
70
11	
Derivative financial instruments
70
12	
Receivables and prepayments
71
13	
Inventories
72
14	
Cash and cash equivalents and restricted bank accounts
72
15	
Shareholder information
73
16	
Management and Board of Directors’ compensation, ​loans, shares, bonds
74
17	
Borrowings
77
18	
Income tax expense and deferred tax assets and liabilities
79
19	
Retirement benefit obligations and expenses
82
20	
Trade payables, provisions and other liabilities
84
21	
Government grants
85
22	
Other operating expenses
85
23	
Other income and expenses
86
24	
Employee benefits
86
25	
Financial income and expenses
87
26	
Earnings per share
87
27	
Dividends per share
88
28	
Research and development
88
29	
Commitments, guarantees, pledges
89
30	
Other information financial instruments
90
31	
Claims, disputes, contingent liabilities and contingent assets and risks
93
32	
Share-based compensation
93
33	
Events after the reporting period
95

52
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
REC SILICON GROUP
REC Silicon ASA was established in Norway on December 3, 1996. 
The Company is headquartered in Lysaker, Norway.
Company and its subsidiaries (together, “REC Silicon Group” or 
“Group”) have a presence in the international solar energy industry. 
Group operations are focused on the production of polysilicon and 
silicon gases for the solar and electronics industries.
The Company is a public limited liability company incorporated and 
domiciled in Norway. The address of its registered office is Lysaker 
Torg 5, 3. etg, Lysaker, Norway.
These consolidated financial statements have been approved for 
issue by the Board of Directors on March 23, 2023 and are subject to 
approval by the Annual General Meeting scheduled for May 11, 2023.
The principal accounting policies applied in the preparation of these 
consolidated financial statements are set out below. These policies 
have been consistently applied to all years presented, unless 
otherwise stated.
2.1 BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE
The financial statements are presented in USD, rounded to the 
nearest tenth of million, unless otherwise stated. As a result of 
rounding adjustments, the figures in one or more rows or columns 
included in the financial statements and notes may not add up to 
the total of that row or column. 
These consolidated financial statements have been prepared in 
accordance with International Financial Reporting Standards as 
adopted by the EU (IFRS), relevant interpretations, and the 
Norwegian Accounting Act. The consolidated financial statements 
have been prepared under the historical cost convention except for 
shareholdings at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS 
requires the use of certain critical accounting estimates. Actual 
outcomes may differ substantially. It also requires management to 
exercise judgment in applying the Group’s accounting policies. 
Areas involving a high degree of judgment or complexity, and areas 
where assumptions and estimates have a significant impact are 
disclosed in note 4.
2.2 CONSOLIDATION
(A) Subsidiaries
Subsidiaries are entities controlled by the Group. The Company 
controls an investee when it is exposed, or has rights, to variable 
returns from its involvement with the investee and has the ability to 
affect those returns through its power over the investee. 
Subsidiaries are consolidated from the date control is obtained 
until the date that control ceases.
All subsidiaries are owned 100 percent and there are no non-
controlling interests. 
Intercompany transactions, balances, and unrealized gains on 
transactions between group companies are eliminated.
(B) Joint ventures
A joint venture is an arrangement where two or more parties have 
joint control. Joint control exists only when decisions require the 
unanimous consent of the parties sharing control. Investments in 
joint ventures are accounted for by the equity method of accounting.
(C) Associates
Associates are entities over which the Group has significant 
influence but not control. Investments in associates are accounted 
for by the equity method of accounting.
2.3 SEGMENT REPORTING
REC Silicon produces silicon gas and polysilicon for the 
semiconductor industries at its manufacturing facility in Butte, 
Montana. The Company also produces polysilicon for the 
photovoltaic industry at its manufacturing facility in Moses Lake, 
Washington. The Company’s organization structure, management 
team, operating strategy, and performance measurement reporting 
support the determination that these businesses represent 
separate distinguishable operating segments. Accordingly, there 
are two operating segments: Solar Materials (Moses Lake, 
Washington) and Semiconductor Materials (Butte, Montana). The 
operating segments include revenues less cost of manufacturing. 
Cost of manufacturing includes direct and indirect manufacturing 
costs and does not include general, administrative, and selling 
expenses. Other includes general, administrative, and selling 
expenses which support both operating segments in addition to 
administrative costs for the Company’s headquarters in Lysaker, 
Norway. Eliminations include the reversal of the impact of 
transactions between group members and affiliates. The results of 
the operating segments plus Other and Eliminations taken together 
reconcile to total EBITDA and EBIT for the Group. 
Group Management is headed by the Chief Executive Officer (CEO), 
and the CEO makes decisions regarding the allocation of resources 
1	
GENERAL INFORMATION
2	
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

53
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
and performance assessment for all segments. Accordingly, the 
CEO is regarded as the Chief Operating Decision Maker (CODM).
An operating segment is a distinguishable component of the Group 
that is engaged in providing products that are subject to similar 
risks and returns and corresponds to management reporting. 
2.4 FOREIGN CURRENCY TRANSLATION
(A) Functional and presentation currency
Items included in the financial statements of each of the Group’s 
entities are measured using the currency of the primary economic 
environment in which the entity operates (“the functional currency”). 
The Group’s reporting currency continues to be USD. Accordingly, 
these consolidated financial statements are presented in USD.
(B) Transactions and balances
Transactions in foreign currencies are translated into the functional 
currency using the exchange rates prevailing at the dates of the 
transactions. Monetary assets and liabilities denominated in 
foreign currencies are translated at the exchange rates on the 
reporting date. Foreign exchange gains and losses resulting from 
the settlement, or the translation of monetary assets and liabilities 
are recognized in the statement of income, except when deferred in 
equity as qualifying hedges or as a part of a net investment. 
(C) Group companies
The results and financial position of all the Group entities that have 
a functional currency different from the presentation currency are 
translated into the presentation currency as follows:
(i)	 Assets and liabilities for each statement of financial position 
presented are translated at the closing rate;
(ii)	 Income and expenses for each statement of income are 
translated at average exchange rates for the reporting period 
(based on monthly average rates); and
(iii)	All resulting exchange differences from translation are 
recognized as a separate component of other comprehensive 
income (OCI).
On consolidation, exchange differences arising from the translation 
of the net investment in subsidiaries, including monetary items that 
are regarded as a part of the net investment, are included in OCI. 
When a subsidiary is disposed of, exchange differences are 
recognized in the statement of income as part of the gain or loss on 
sale. At December 31, 2022 and 2021, an intercompany loan from 
REC Silicon ASA to REC Silicon, Inc. of USD 131.8 million was 
regarded as a part of the net investment in REC Silicon Inc.
2.5 CURRENT/NON-CURRENT
Assets and liabilities are classified as current when they are 
expected to be realized or settled within 12 months after the 
reporting date.
2.6 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated 
depreciation and un-reversed impairment losses. Cost includes 
expenditures that are directly attributable to the acquisition, 
construction, or installation of the item. Borrowing costs incurred 
for the construction of qualifying assets are capitalized during the 
period required to complete and prepare the asset for its intended 
use. Costs are included in an asset’s carrying amount when it is 
probable that future economic benefits associated with the item 
will flow to the Group and costs can be measured reliably. 
Depreciation is calculated using the straight-line method based on 
the costs of the assets less any residual value over their estimated 
useful lives.
2.7 INTANGIBLE ASSETS
(A) Goodwill
Goodwill represents the excess of the cost of an acquisition over 
the fair value of the Group’s share of the net identifiable assets. 
Goodwill is carried at cost less accumulated impairment losses. 
Goodwill related to equity accounted investments is included in the 
carrying value of investments. At December 31, 2022 and 2021 the 
Group had no goodwill.
(B) Other intangible assets
Other intangible assets that have finite useful lives are carried at 
cost less accumulated amortization and un-reversed impairment. 
Amortization is calculated using the straight-line method on the 
costs of assets over their estimated useful lives from the date they 
are available for use. The Group has no intangible assets with 
indefinite useful lives. 
(C) Research and development
Research expenditures are recognized in expense as incurred. 
Development expenditures (relating to the design, construction and 
testing of a chosen alternative for new or improved materials, 
devices, products, processes, or systems) are capitalized when it is 
probable that the project will be successful considering its 
commercial and technological feasibility. Costs expensed in prior 
reporting periods are not later capitalized. Other development 
expenditures are recognized in expense as incurred.
2.8 IMPAIRMENT OF ASSETS
Assets are reviewed for impairment whenever events or changes in 
circumstances indicate that the carrying amounts may not be 
recoverable. An impairment loss is recognized in the statement of 
income for the amount by which the asset’s carrying amount 
exceeds its estimated recoverable amount. The recoverable amount 
is the higher of an asset’s fair value less costs to sell or value in use. 
For the purpose of assessing impairment, assets are grouped at the 
lowest level for which cash inflows that are largely independent 
from the cash inflows associated with other assets can be 
identified (cash-generating units). Generally, any impairment is 
allocated to goodwill first, then proportionately to other non-
current assets within a cash-generating unit. Assets other than

54
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
goodwill that suffered impairment are reviewed for possible 
reversal of the impairment at each reporting date.
Impairment includes losses associated with assets determined to 
have no future economic benefits and assets that are replaced prior 
to the end of their useful lives.
2.9 FINANCIAL ASSETS AND LIABILITIES
Financial assets are classified and subsequently measured at 
amortized cost, fair value through profit or loss, or fair value 
through other comprehensive income based on both the use of the 
assets within the entity’s business model and the nature of the cash 
flows. A financial asset is derecognized when expired or when the 
entity no longer has control of the cash flows related to the assets. 
Any rights or obligations retained in any transfer of assets are 
booked separately as assets or liabilities. Financial liabilities are 
classified and subsequently measured at amortized cost, except for 
financial liabilities (including derivatives) which are classified at fair 
value.
2.10 ACCOUNTING FOR DERIVATIVE FINANCIAL  
INSTRUMENTS AND HEDGING ACTIVITIES
Derivatives are recognized at fair value on the date a derivative 
contract is entered into and are subsequently measured for 
changes in fair value. Derivatives are carried as assets when the fair 
value is positive and as liabilities when the fair value is negative 
unless the Group has the intention and ability to settle the contracts 
net. The method of recognizing resulting gains or losses depends on 
whether the derivative is designated and qualifies as a hedging 
instrument and the nature of the item being hedged. Derivatives are 
categorized as held for trading unless they are designated and 
qualify as hedging instruments. See note 11.
2.11 TRADE RECEIVABLES
Trade receivables that do not have a significant financing 
component are recognized at transaction price and subsequently 
measured at amortized cost, less impairment. A provision for the 
impairment of trade receivables is recognized based upon lifetime 
expected credit losses (ECLs). The Group calculates ECLs based 
upon the Group’s historic credit loss experience adjusted for 
forward-looking factors specific to the debtors and the economic 
environment. In addition, provisions are recorded for accounts 
which are greater than 60 days past due unless there is a clear 
indication that payment will be received. Balances are written off 
when collection efforts have been exhausted and the probability of 
recovery is unlikely.
2.12 CASH AND CASH EQUIVALENTS 
Cash and cash equivalents include cash on hand, demand deposits 
at banks, and money market funds with terms less than three 
months. 
2.13 PAID-IN EQUITY CAPITAL
Incremental costs directly attributable to the issue of new shares 
are shown in equity as a deduction, net of any income tax, from the 
proceeds.
2.14 BORROWINGS
Borrowings are recognized initially at fair value. Borrowings that are 
not maintained at fair value through profit or loss are recognized 
net of transaction costs and subsequently stated at amortized cost. 
Any difference between the proceeds (net of transaction costs) and 
the redemption value is recognized in the statement of income over 
the period the borrowings are outstanding using the effective 
interest method. Commitment fees for bank credit facilities are 
recognized as part of interest expenses as incurred.
A financial liability is removed from the statement of financial 
position when the obligation is discharged, cancelled, or expires. 
Substantial modifications to the terms of existing financial 
liabilities or an exchange of debt instruments with an existing lender 
at substantially different terms are treated as extinguishments of 
the original liability. The difference between the carrying amount of 
a financial liability and the consideration paid to extinguish the 
liability is recognized in profit or loss.
2.15 INVENTORIES
Inventories are stated at the lower of cost or net realizable value 
(NRV).
Purchased inventories are stated at average cost less estimated 
obsolescence. Reserves for obsolescence include the write down of 
items no longer required (held for disposal) and the estimated 
decline in NRV caused by slow moving items.
The cost of finished goods and work in progress inventories are 
determined on a first in, first out basis and consists of raw 
materials, direct labor, other direct costs, and related indirect 
overheads. Costs associated with abnormal waste or unused normal 
operating capacity are not included in inventories. NRV is the 
estimated sales price less incremental costs to complete and sell 
the item. Net adjustments to reduce inventory to the lower of cost 
or NRV are recognized in inventory changes in the statement of 
income.
2.16 INCOME TAX
Income tax expense (benefit) includes current and deferred tax. 
Income tax expense (benefit) is recognized in profit or loss except 
to the extent it relates to items recognized directly in equity or in 
other comprehensive income.
Current tax is the estimated tax payable or receivable on the 
taxable income or loss for the year, and any adjustments to tax 
payable for previous years. Deferred tax includes the effect of 
temporary differences between the carrying amounts of assets and 
liabilities for financial reporting purposes and their tax bases. 
Deferred tax also includes the carry forward of unused net 
operating losses and credits.
Current and deferred tax amounts are determined using rates and 
laws that have been enacted or substantially enacted at the 
reporting date or are expected to apply when temporary 
differences reverse. Net deferred tax assets are recognized to the

55
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
extent that it is probable that future taxable profit will be available 
against which deferred amounts can be utilized. 
Deferred income tax assets and liabilities are offset when there is a 
legally enforceable right to offset current tax assets and liabilities 
and the Group intends to settle its current tax assets and liabilities 
on a net basis.
Utilization of net operating losses and tax credit carry forwards are 
subject to certain limitations under Section 382 and 383 of the 
Internal Revenue Code of the United States in the event of a change 
in the Company’s ownership.
2.17 PROVISIONS
Provisions for product warranties, onerous contracts, asset 
retirement obligations, restructuring costs, termination benefits, 
environmental restoration, and legal claims are recognized when: 
The Group has a present or constructive obligation as a result of 
past events; it is probable that an outflow of resources will be 
required to settle the obligation; and the amount has been reliably 
estimated. Provisions are discounted only when the effect is 
material and the distribution in time can be reliably estimated. 
2.18 SHARE-BASED COMPENSATION
The Group grants synthetic share options to certain employees. The 
cost of these share-based options (settled in cash) is recalculated 
at each reporting date using the Black Scholes option pricing model 
(see note 32). 
2.19 PENSION/POST RETIREMENT OBLIGATIONS
A defined benefit plan is a pension plan that defines an amount of 
pension benefit that an employee will receive on retirement, usually 
dependent on one or more factors such as age, years of service and 
compensation. The liability recognized in the statement of financial 
position in respect of defined benefit pension plans is the present 
value of the defined benefit obligation at the reporting date less the 
fair value of plan assets. 
Re-measurements arising from experience adjustments and 
changes in actuarial assumptions are charged or credited to equity 
via other comprehensive income in the period in which they arise. 
Gains or losses on the curtailment or settlement of a defined 
benefit plan are recognized when the curtailment or settlement 
occurs. 
Obligations for contributions to defined contribution pension plans 
are recognized as an expense during the period incurred. 
2.20 REVENUE RECOGNITION
REC Silicon’s primary performance obligation is related to sale of 
goods in which the performance obligations are the delivery of an 
agreed volume of products within an agreed specification. REC 
Silicon has both short term and long-term contracts. Spot market 
sales, normally one month, cover delivery of an agreed volume at 
market price at the date the order is placed. The short-term 
contracts cover a period of a few months and up to one year, where 
the prices normally are fixed within a volume range. REC Silicon also 
has some long-term frame contracts that cover a period longer than 
one year. In these contracts the prices are normally negotiated on 
an annual basis.
Revenue is recognized when control of the goods is transferred to 
the customer at an amount that reflects the consideration to which 
REC Silicon expects to be entitled in exchange for those goods or 
services. Control is transferred to the buyer, according to the 
agreed delivery term for each sale. Delivery terms are based on 
Incoterms specified within sales contracts. Generally, the main 
terms are “Ex Works” and “FCA”.
The Group recognizes a provision for discounts and expected 
returns when a discount provisions or a right of return is specified in 
purchase contracts. The Group recognizes revenue from the sale of 
goods measured at the fair value of consideration received or 
receivable, which includes a provision of allowances for discounts 
and expected returns.
Goods are normally sold with standard warranties that the goods 
comply with the agreed-upon specifications. These standard 
warranties are accounted for using IAS 37 Provisions, Contingent 
Liabilities and Contingent Assets. REC Silicon does not have any 
other significant obligations for returns or refunds.
2.21 LEASES
At the inception of a contract, the Group assesses whether a 
contract is, or contains a lease. A lease exists if the contract 
conveys the right to control the use of an identified asset for a 
period of time in exchange for consideration. The Group recognizes 
a right-of-use asset and a lease liability at the lease commencement 
date. The right-of-use asset is initially measured at cost, which 
comprises the initial amount of the lease liability adjusted for any 
lease payments made at or before the commencement date, plus 
any initial direct costs incurred and an estimate of the costs to 
dismantle and remove the underlying assets or to restore the 
underlying asset or the site on which it is located, less any lease 
incentives received.
Right-of-use assets are subsequently depreciated using the 
straight-line method from the commencement date to the end of 
the lease term. In addition, right-of-use assets are periodically 
adjusted for impairment losses, if any, and for certain 
remeasurements of the associated lease liability.
The lease liability is initially measured at the present value of the 
lease payments that are not paid at the commencement date, 
discounted using the interest rate implicit in the lease or, if that rate 
cannot be readily determined, the Group’s incremental borrowing 
rate. Generally, the Group uses its incremental borrowing rate as the 
discount rate.

56
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
Lease payments are amortized to interest expense and to reduce 
the associated lease liability based upon the present value 
calculation used at inception to determine the lease liability. 
Leases of ’low-value’ assets and short-term leases (lease terms of 
12 months or less) are recognized as expense in profit or loss when 
incurred.
2.22 GOVERNMENT GRANTS
Government grants are recognized at their fair values when there is 
reasonable assurance that the grants will be received and that the 
Group will comply with attached conditions. Government grants 
related to assets are presented in the statement of financial 
position as a reduction to the carrying amount of the assets and 
reduce depreciation in the statement of income. Government grants 
relating to income are listed separately under other income.
Government grant assets are recognized for the unsettled portions 
of grants and are discounted if the effect of discounting is 
significant. Significant changes to estimates of timing of utilization 
or discount rates are recognized as a change in the grant asset and 
offset to production assets or expenses based on the classification 
at the inception of the grant (see note 21).
2.23 STATEMENT OF CASH FLOWS
The Group presents the statement of cash flows using the indirect 
method. Cash inflows and outflows are shown separately for 
investing and financing activities, while operating activities include 
both cash and non-cash line items. Interest received and paid are 
reported as a part of operating activities, except borrowing costs 
capitalized as part of the construction of a non-current asset that 
are included in investing activities, and payment of up-front and 
loan fees that are reported as part of financing activities.
Operating activities include all cash flow effects from derivatives. 
Currency gains and losses are recognized in the statement of 
income. Amounts related to borrowing (financing activities), non-
current financial assets and investments (investing activities) and 
unrealized gains or losses on cash and cash equivalents held at the 
end of the periods are reclassified in a separate line item under 
operating activities. 
Financing activities include the repayment of prepayments received 
from customers on which interest is calculated. 
2.24 ADOPTION OF NEW AND REVISED  
STANDARDS AND INTERPRETATIONS
The Group, in practice, adopts new and amended standards and 
interpretations, issued by the IASB and approved by the EU, that are 
relevant to its operations as effective. A number of changes to 
standards were effective beginning January 1, 2022 but they did 
not have a material effect on the Group’s financial statement.

57
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
3.1 FINANCIAL RISK FACTORS
The Group’s activities expose it to a variety of financial risks, 
including currency risk, interest-rate risk, liquidity risk, credit risk, 
refinancing risk and others. 
The goals for the Group finance policy and the treasury operations 
are primarily to minimize the risk of financial distress, secure long-
term funding, manage currency risk of expected future net cash 
flows, and manage interest rate risk. The Company’s finance policy 
sets the framework and limits for hedging activities in the Group. It 
defines risk management objectives, responsibilities, and 
operational requirements. 
The disclosures that are required regarding financial risks below 
focus on the risks that arise from financial instruments and how 
they have been managed. Derivative financial instruments may be 
used to reduce risks from commercial transactions; the existence of 
derivative financial instruments exposes the Company to additional 
risks.
(A) Currency risk
The Company operates internationally and is exposed to currency 
risk. At December 31, 2022, the Group’s working capital is a 
combination of USD and NOK, equity is in NOK, and debt is in USD. 
Currency risk arises from transactions in currencies other than the 
Group’s reporting currency and cash denominated in NOK. Currency 
risk relates primarily to a portion of cash balances denominated in 
NOK.
Net cash flow is defined as the consolidated external cash flows of 
the Group. The Group’s policy provides the ability to hedge external 
net cash flows with a maximum time horizon of 24 months. The 
purpose is to reduce the currency risk of expected future net cash 
flows. The Company manages currency risk on an overall level.
At December 31, 2022 and 2021, the Group did not hold any 
derivative financial instruments related to mitigating currency risks.
(B) Credit risk
Credit risk is the risk of loss to the Group if a customer or 
counterparty to a financial instrument fails to meet its contractual 
obligation and is primarily related to trade receivables and 
guarantees provided for discontinued operations. The Group 
maintains policies to ensure that credit is extended to customers 
with appropriate liquidity and credit histories in combination with 
requiring guarantees when appropriate.
(C) Liquidity risk and going concern
Liquidity risk is measured by subtracting the Group’s liabilities from 
cash considering historic and anticipated operating results. 
Liquidity risk management requires maintaining sufficient available 
cash or access to capital markets to compensate for anticipated 
volatility in operating cash flows or to fund additional investments.
Liquidity risk is impacted by changes in market conditions, potential 
claims against the Company, and uncertainty associated with 
critical judgements used to arrive at accounting estimates. In 
addition, the Company’s access to capital markets may be impacted 
by overall market conditions (notes 4, 17, and 30).
On March 21, 2023, the Company announced a corporate debt 
financing, which is a 3 year-term loan of USD 110 million from KEB 
Hana Bank in Korea for the purpose of retiring the senior secured 
bond that matures on April 13, 2023.  REC Silicon’s largest 
shareholder Hanwha Solutions has committed to fully guarantee 
the announced debt financing, which will result in favorable terms 
compared to other financing alternatives.
In addition to this USD 110 million debt financing, the company has 
a near term need to raise additional financing to meet liquidity 
requirements in 2023, in particular relating to the ongoing restart 
activities of the company’s polysilicon factory in Moses Lake and 
capacity investments in Butte. The Company is currently working 
with various financing parties and we are confident that we are 
close to a final solution that covers the entire funding amount 
needed for the next 12 months. REC Silicon will update the market 
as financing plans are concluded. (see note 17, 29 and 33)
Accordingly, the Board of Directors confirms that the Financial 
Statements have been prepared under the assumption that the 
Company is a going concern, and that this assumption is appropriate 
at the date of the accounts.
(D) Interest rate risk
Changes in market interest rates affect the fair value of assets and 
liabilities or the variability in cash payments. The Group is exposed 
to interest rate risk through funding and cash management 
activities, primarily in REC Silicon ASA and REC Silicon AS. Cash in 
bank accounts and liabilities have primarily carried variable interest 
rates. The Company has borrowings through bonds.. 
Interest income and interest expense in the statement of income, as 
well as interest receipts and payments, are influenced by interest 
rate changes for financial instruments that carry variable interest 
rates. See note 30 for interest rate sensitivity.
(E) Hedging of risk related to supply of raw material/commodities 
When the Group is exposed to changes in the total costs from 
specific input factors it may hedge the associated risk. As of year-
end 2022 and 2021, no hedges were in place.
3	
FINANCIAL RISK MANAGEMENT

58
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
3.2 FAIR VALUE ESTIMATION 
Fair value estimation is discussed in notes 9 and 30.
3.3 CAPITAL STRUCTURE AND FINANCING
In determining the appropriate capital structure for the Group, 
various factors have been considered. These include risks 
associated with the Group’s business profile and the fact that the 
polysilicon production has high capital intensity.
The Group’s goal is to maintain sufficient capital to maintain current 
operating cash flow requirements and to meet debt service 
obligations. Taking into account market volatility and risk related to 
future cash flows, the Group aims to maintain a capital structure 
with a high ratio of equity funding.  

4.1 CRITICAL JUDGMENTS IN APPLYING THE GROUP’S 
ACCOUNTING POLICIES
Management’s judgments in applying the Group’s accounting 
policies which have the most significant effect on the financial 
statements are discussed below and in the relevant notes.
(A) Functional currencies
The Group’s presentation currency is USD. The functional currencies 
of REC Silicon AS and REC Solar AS are NOK. The functional 
currency of all other group companies is USD. The activities of the 
Group are primarily in the subsidiaries in the USA. Functional 
currency affects the reporting of currency gains and losses and 
exchange differences as well as hedging strategies and effects. 
Facts or circumstances may change in the future.
(B) Cash-generating units for impairment testing
The selection of cash generating units for impairment testing is a 
critical and difficult judgement. For impairment testing REC Silicon 
consisted of two cash generating units.
(C) Environmental liability
The Group’s operations are subject to environmental laws and 
regulations. These laws and regulations and their interpretations 
are subject to change. Changes may require investment and/or 
increased costs to meet more stringent standards or to take 
remedial actions related to past activities. The Company has 
reported a provision for asset retirement obligations (AROs) 
associated with the eventual cleanup and restoration of the 
Company’s manufacturing sites in the United States (note 20).
4.2 KEY SOURCES OF ESTIMATION UNCERTAINTY  
– CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements in accordance with 
International Financial Reporting Standards requires management 
to make estimates and assumptions that affect the reported 
amounts of assets and liabilities, as well as the disclosure of 
contingent assets and liabilities at the date of the financial 
statements and the reported amounts of revenues and expenses 
during the reporting period. Actual results could differ from those 
estimates. Certain amounts included in or affecting the Group’s 
financial statements and related disclosures must be estimated, 
requiring management to make assumptions with respect to values 
or conditions which cannot be known with certainty at the time the 
financial statements are prepared.
(A) Impairments and bad debt provisions
Changes in facts and in management’s evaluations and assumptions 
may give rise to further impairment losses, or reversals. The 
estimated recoverable amounts of the Group’s assets are sensitive 
to small changes to key assumptions. The Company uses internal 
business plans that include estimates on raw material and energy 
prices, discount rates, and external market and industry analysis. 
There could be changes in environmental regulations impacting the 
company going forward, but no related legislation has been passed 
at the current time that is expected to impact the group. (notes 8 
and 9). 
Financial assets are also periodically reviewed for impairment. 
Provisions for losses on trade receivables have been made using a 
provision matrix based on the Group’s historical credit loss 
experience adjusted for forward-looking factors specific to the 
debtors and the economic environment. Actual losses may turn out 
significantly different from the evaluations made based on the 
knowledge and assumptions at the time of approving the accounts. 
(B) Asset retirement obligations
The company has an obligation for eventual cleanup of its 
manufacturing operations in Moses Lake, Washington and Butte 
Montana. Changes in facts and in management’s evaluations and 
assumptions may give rise to changes in provisions for asset 
retirement obligations (AROs). Provisions may change due to 
changes in amounts or timing of estimated expenditures to restore 
production sites or changes in governmental regulations governing 
restoration requirements. The restoration of production sites is 
subject to significant uncertainty due to variability in restoration 
requirements that may be imposed by regulatory authorities as well 
as timing of the restoration. In addition, estimates of provisions are 
sensitive to changes in discount rates used to calculate provisions 
for AROs reported by the Group. (note 20)
4	
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

59
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
(C) Fair Value of the investment in the Yulin JV
Changes in facts and in management’s evaluations and assumptions 
may give rise to changes in fair value estimates of the Company’s 
investment in the Yulin JV. The estimate of fair value may change 
due to changes in amounts or timing of cashflows generated by the 
Yulin JV. In addition, estimates of fair value are sensitive to changes 
in the discount rate used to arrive at estimates of fair value.  
(see note 9)
Revenues from customers constituting more than ten percent of total revenues for year ended December 31, 2022
SEMICONDUCTOR MATERIALS
SOLAR MATERIALS
OTHER
REC SILICON
(USD IN MILLION)
%
%
%
%
Customer 1
39.7
26.9%
 39.7 
26.9%
Customer 2
23.2
15.7%
 23.2 
15.7%
 
Revenues from customers constituting more than ten percent of total revenues for year ended December 31, 2021
SEMICONDUCTOR MATERIALS
SOLAR MATERIALS
OTHER
REC SILICON
(USD IN MILLION)
%
%
%
%
Customer 1
 40.6 
28.4%
 40.6 
28.4%
Customer 2
 24.7 
17.3%
 24.7 
17.3%
Customer 3
 14.4 
10.1%
 14.4 
10.1%
 
Geographic distribution of revenues based on customer location for year ended December 31, 2022
SEMICONDUCTOR MATERIALS
SOLAR MATERIALS
OTHER
REC SILICON
(USD IN MILLION)
%
%
%
%
China
40.1
27.2%
0.0
0.0%
0.0
0.0%
40.1
27.1%
USA
21.5
14.6%
0.2
100.0%
0.2
100.0%
21.9
14.8%
Taiwan
21.3
14.5%
0.0
0.0%
0.0
0.0%
21.3
14.4%
Korea
20.8
14.1%
0.0
0.0%
0.0
0.0%
20.8
14.1%
Singapore
18.4
12.5%
0.0
0.0%
0.0
0.0%
18.4
12.5%
Denmark
11.2
7.6%
0.0
0.0%
0.0
0.0%
11.2
7.6%
Japan
8.4
5.7%
0.0
0.0%
0.0
0.0%
8.4
5.7%
Other
1.8
1.2%
0.0
0.0%
0.0
0.0%
1.8
1.2%
Belgium
1.4
0.9%
0.0
0.0%
0.0
0.0%
1.4
0.9%
France
0.9
0.6%
0.0
0.0%
0.0
0.0%
0.9
0.6%
Hong Kong
0.8
0.6%
0.0
0.0%
0.0
0.0%
0.8
0.6%
Czech Republic
0.7
0.5%
0.0
0.0%
0.0
0.0%
0.7
0.5%
Canada
0.1
0.0%
0.0
0.0%
0.0
0.0%
0.1
0.0%
Switzerland
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Germany
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Total revenues
147.4
100.0%
0.2
100.0%
0.2
100.0%
147.8
100.0%
 
5	
SEGMENT AND REVENUE INFORMATION

60
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
Geographic distribution of revenues based on customer location for year ended December 31, 2021
SEMICONDUCTOR MATERIALS
SOLAR MATERIALS
OTHER
REC SILICON
(USD IN MILLION)
%
%
%
%
China
39.7
27.8%
0.1
48.2%
0.0
0.0%
39.8
27.8%
Korea
20.9
14.6%
0.0
0.0%
0.0
0.0%
20.9
14.6%
Singapore
20.3
14.2%
0.0
0.0%
0.0
0.0%
20.3
14.2%
Taiwan
20.1
14.1%
0.0
0.0%
0.0
0.0%
20.1
14.0%
USA
17.8
12.4%
0.0
10.4%
0.2
100.0%
18.0
12.6%
Japan
9.7
6.8%
0.0
0.0%
0.0
0.0%
9.7
6.8%
Denmark
9.5
6.6%
0.0
0.0%
0.0
0.0%
9.5
6.6%
Other
1.8
1.3%
0.0
41.3%
0.0
0.0%
1.8
1.3%
Czech Republic
1.3
0.9%
0.0
0.0%
0.0
0.0%
1.3
0.9%
Belgium
1.1
0.8%
0.0
0.0%
0.0
0.0%
1.1
0.8%
France
0.6
0.4%
0.0
0.0%
0.0
0.0%
0.6
0.4%
Canada
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Germany
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Hong Kong
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Switzerland
0.0
0.0%
0.0
0.0%
0.0
0.0%
0.0
0.0%
Total revenues
142.8
100.0%
0.1
100.0%
0.2
100.0%
143.2
100.0%
Customer location is based on the sales ship-to address. Customers may distribute the products to other countries. 
Revenues by category for year ended December 31, 2022
SEMICONDUCTOR MATERIALS
SOLAR MATERIALS
OTHER
REC SILICON
(USD IN MILLION)
%
%
%
%
Silane gas
86.5
58.7%
0.0
0.0%
0.0
0.0%
86.5
58.5%
Polysilicon
61.0
41.3%
0.0
0.0%
0.0
0.0%
61.0
41.2%
Other
0.0
0.0%
0.2
100.0%
0.2
100.0%
0.4
0.3%
Total revenues
147.4
100.0%
0.2
100.0%
0.2
100.0%
147.8
100.0%
Revenues by category for year ended December 31, 2021
SEMICONDUCTOR MATERIALS
SOLAR MATERIALS
OTHER
REC SILICON
(USD IN MILLION)
%
%
%
%
Silane gas
88.0
61.6%
0.0
2.8%
0.0
0.0%
88.0
61.5%
Polysilicon
54.8
38.4%
0.1
97.2%
0.0
0.0%
54.9
38.4%
Other
0.0
0.0%
0.0
0.0%
0.2
100.0%
0.2
0.2%
Total revenues
142.8
100.0%
0.1
100.0%
0.2
100.0%
143.2
100.0%

61
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
The segment results in the tables below are the primary results used by the Chief Operating Decision Maker (CODM) to evaluate 
performance and allocate resources. EBITDA contribution includes all items that are included in EBITDA for the segments. The segment 
“Other” includes general, administrative, and selling expenses which support both operating segments in addition to administrative costs for 
the Company’s headquarters in Lysaker, Norway.
Segment information for the year ended December 31, 2022
(USD IN MILLION)
SEMICONDUCTOR 
MATERIALS
SOLAR 
MATERIALS
OTHER
ELIMINATIONS
TOTAL
Revenues 
147.4
0.2
0.2
0.0
147.8
Cost of materials 
-26.9
-0.4
0.0
0.0
-27.3
Change in inventories 
-4.7
1.4
-0.5
0.0
-3.8
Employee benefit expense 
-25.7
-8.8
-9.5
0.0
-44.1
Other operating expenses 
-83.8
-12.3
-11.0
0.0
-107.1
Other income and expenses 
0.0
0.0
-0.5
0.0
-0.5
Total costs 
-141.1
-20.1
-21.5
0.0
-182.8
EBITDA contribution 
6.3
-19.9
-21.3
0.0
-34.9
Depreciation of fixed Assets 
-11.1
-8.4
-0.5
0.0
-19.9
Amortization 
0.0
0.0
0.0
0.0
0.0
Depreciation of leased Assets 
-2.6
-0.6
0.0
0.0
-3.1
Impairment 
-0.3
0.0
0.0
0.0
-0.3
Total depreciation, amortization, and impairment 
-13.9
-9.0
-0.5
0.0
-23.4
EBIT contribution 
-7.6
-28.9
-21.8
0.0
-58.3
Segment information for the year ended December 31, 2021
(USD IN MILLION)
SEMICONDUCTOR 
MATERIALS
SOLAR 
MATERIALS
OTHER
ELIMINATIONS
TOTAL
 Revenues 
142.8
0.1
0.2
0.0
143.2
 Cost of materials 
-16.9
-0.2
0.0
0.0
-17.1
 Change in inventories 
-10.8
1.9
0.0
0.0
-8.9
 Employee benefit expense 
-24.2
-6.8
-10.7
0.0
-41.7
 Other operating expenses 
-62.1
-4.6
-9.0
0.0
-75.6
 Other income and expenses 
4.5
3.9
-0.4
0.0
7.9
 Total costs 
-109.4
-5.8
-20.2
0.0
-135.4
 EBITDA contribution 
33.4
-5.7
-20.0
0.0
7.7
 Depreciation of fixed assets 
-12.1
-12.4
-0.6
0.0
-25.2
 Amortization 
0.0
0.0
0.0
0.0
0.0
 Depreciation of leased assets 
-2.4
-0.6
0.0
0.0
-3.0
 Impairment 
0.0
-0.3
0.0
0.0
-0.3
 Total depreciation, amortization, and impairment 
-14.6
-13.3
-0.6
0.0
-28.5
 EBIT contribution 
18.9
-19.0
-20.6
0.0
-20.8
 
Substantially all of the Group’s non-current assets are located in the United States.

62
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
The following table disaggregates revenues by type and reconciles to total revenues.
(USD IN MILLION)
2022
2021
 Spot Contract Revenue 
93.9
92.7
 Structured (Regional/Volume pricing) 
44.8
45.1
 Tiered (Volume pricing) 
9.1
5.3
Total
147.8
143.2
Property, plant and equipment
(USD IN MILLION)
LAND AND 
BUILDINGS
MACHINERY AND 
EQUIPMENT
OTHER TANGIBLE 
FIXED ASSETS
ASSETS UNDER 
CONSTRUCTION
TOTAL 
PROPERTY, 
PLANT AND 
EQUIPMENT
Carrying value at January 1, 2022
33.3
34.7
2.6
12.5
83.1
Net additions 1)
0.0
7.2
0.8
49.9
58.0
Disposals
0.0
0.0
0.0
0.0
0.0
Depreciation and amortization
-2.2
-17.3
-0.4
0.0
-19.9
Carrying value at December 31, 2022
31.1
24.6
2.7
62.4
120.9
At December 31, 2022
Historical cost
140.9
2,161.3
73.4
104.0
2,479.6
Accumulated depreciation/amortization/impairment
-109.7
-2,136.7
-70.7
-41.6
-2,358.7
Carrying value at December 31, 2022
31.1
24.6
2.7
62.4
120.9
Carrying value at January 1, 2021
35.6
50.5
3.1
6.1
95.4
Net additions 1)
0.0
6.5
0.0
6.3
12.8
Disposals
0.0
0.0
0.0
0.0
0.0
Depreciation and amortization
-2.3
-22.4
-0.5
0.0
-25.2
Impairment
0.0
0.0
0.0
0.0
0.0
Carrying value at December 31, 2021
33.3
34.7
2.6
12.5
83.1
At December 31, 2021
Historical cost
140.9
2,156.6
76.5
69.0
2,443.0
Accumulated depreciation/amortization/impairment
-107.5
-2,121.9
-73.8
-56.6
-2,359.9
Carrying value at December 31, 2021
33.3
34.7
2.6
12.5
83.1
1	 Net additions include transfers from assets under construction.
Specification of useful lives and depreciation
At year-end 2022, estimated useful lives by asset class were as follows:
•	 Land and Buildings 0-27.5 years (weighted average approximately 17.0 years)
•	 Machinery and equipment 0-26.5 years (weighted average approximately 3.2 years)
•	 Other tangible fixed assets (weighted average approximately 5.0 years)
 
Assets under construction are not yet ready for their intended use and depreciation has not started. 
Reviews of estimated useful lives of property, plant, and equipment for 2022 and 2021 resulted in only minor changes.
6	
FIXED ASSETS

63
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Intangible assets
(USD IN MILLION)
ASSETS UNDER 
DEVELOPMENT
OTHER
TOTAL 
INTANGIBLE 
ASSETS
Carrying value at January 1, 2022
0.5
0.4
0.9
Amortization
0.0
0.0
0.0
Carrying value at December 31, 2022
0.6
0.3
1.0
At December 31, 2022
Historical cost
0.9
67.9
68.8
Accumulated amortization/impairment
-0.3
-67.5
-67.8
Carrying value at December 31, 2022
0.6
0.3
1.0
Carrying value at January 1, 2021
0.5
0.4
1.0
Disposals
0.0
0.0
0.0
Amortization
0.0
0.0
0.0
Carrying value at December 31, 2021
0.5
0.4
0.9
At December 31, 2021
Historical cost
0.8
67.9
68.7
Accumulated amortization/impairment
-0.3
-67.5
-67.8
Carrying value at December 31, 2021
0.5
0.4
0.9
 
Intangible assets above have estimated useful lives, over which the assets are amortized on a straight-line basis. Intangible assets under 
development are not ready for their intended use, and consequently amortization has not started. 
Intangible assets are primarily related FBR technology in REC Silicon (3-10 years). 
Reviews of estimated useful lives of intangible assets for 2022 and 2021 resulted in only minor changes.

64
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
Right of use Assets
(USD IN MILLIONS)
LAND AND 
BUILDINGS
MACHINERY
GAS PLANTS
COMPUTER 
HW/SW
MOTOR VEHICLES
OFFICE 
EQUIPMENT
TOTAL
Balance at January 1, 2022
0.1
1.2
32.0
0.0
0.0
0.0
33.2
Depreciation
-0.1
-0.2
-2.8
0.0
0.0
0.0
-3.1
Additions
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Adjustments
0.0
-0.5
0.7
0.0
0.0
0.0
0.3
Balance at December 31, 2022
0.0
0.5
29.9
0.0
0.0
0.0
30.4
Balance at January 1, 2021
0.0
1.7
33.9
0.0
0.1
0.1
35.7
Depreciation
0.0
-0.2
-2.7
0.0
0.0
0.0
-3.0
Additions
0.1
0.0
0.0
0.0
0.0
0.0
0.1
Impairments 1)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Adjustments
0.0
-0.3
0.7
0.0
0.0
0.0
0.4
Balance at December 31, 2021
0.1
1.2
32.0
0.0
0.0
0.0
33.2
1)	 See note 8 for details of impairment. 
Adjustments during 2022 consist of USD 0.7 million related to contractual increases in lease payments tied to economic indices and USD 
0.5 million related to decreases in leased asset retirement obligation (ARO) estimates.
Lease Liabilities
(USD IN MILLIONS)
2022
2021
Maturity analysis - contractual undiscounted cash flows
Less than 1 year
11.1
11.1
1 - 2 years
14.5
11.0
2 - 3 year
14.5
14.4
3 - 4 years
14.5
14.4
4 - 5 years
14.5
14.4
More than 5 years
44.4
58.0
Total undiscounted lease liabilities at December 31
113.6
123.3
Lease liabilities included in the statement of financial position at December 31
68.6
70.5
Current
2.8
2.6
Non-current
65.8
67.9
 
The Company includes rights to extend or terminate leases in the lease term when the Company intends to exercise a right to extend or 
terminate a lease. The Company is not a party to any lease that includes material rights to extend or terminate the term of a lease.  
The weighted average incremental borrowing rate applied to lease liabilities is 13.2 percent at December 31, 2022 and December 31, 
2021.
7	
LEASES

65
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Leases recognized in profit or loss
(USD IN MILLIONS)
2022
2021
Interest on lease liabilities
8.6
8.8
Depreciation of right-of-use assets
3.1
3.0
Gain(-)/loss(+) due to terminations, purchases, impairments, and other changes
0.5
0.3
Expenses relating to short-term leases
0.1
0.2
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets
0.0
0.0
 
Right-of-use assets associated with contracts with a term less than 12 months at the time of initiation are expensed in accordance with the 
low-value assets and short-term lease exemptions in accordance with IFRS 16.
In 2022, the Group made lease payments totaling USD 11.2 million, comprised of USD 2.6 million of lease liability payments and USD 8.6 
million imputed interest. See note 25 below.
In addition, payments of USD 0.1 million related to leases for low-value-assets and short-term durations which are exempt under IFRS 16 
have been expensed in 2022. See note 22 below.

66
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
REC Silicon routinely monitors assets for indications that the carrying 
values of assets are no longer recoverable. If impairment indicators 
exist, impairment tests will be carried out to determine whether the 
carrying value of affected assets can be justified. If estimates 
conclude that asset values are no longer recoverable, the assets are 
written down to the recoverable amount which is the greater of fair 
value less cost to sell and value in use (discounted cash flows).
CASH-GENERATING UNITS
REC Silicon consisted of two cash generating units at December 31, 
2022 and 2021.
Management has performed an evaluation of the Company’s 
operations and determined that the Group consisted of two cash 
generating units (CGUs) based upon the Company’s operations and 
management structures. This determination included consideration 
for segment reporting which includes segments for Solar Materials 
and Semiconductor Materials which were determined by 
management to represent the smallest units for which cash flows 
can be reasonably determined. Net Costs associated with Other 
have been allocated to the individual CGUs based upon estimated 
activity, volume, and revenue factors.
SUMMARY OF IMPAIRMENT TESTS
During 2022, recurring net operating losses, the restart of the 
Moses Lake FBR facility, increased raw material prices, and changes 
to the discount rate were determined to be indicators of potential 
changes in impairment for the Solar Materials Segment. Impairment 
testing was performed at December 31, 2022 on the Solar 
Materials CGU and resulted in estimated values in use that 
approximated the carrying value of the Solar Materials CGU. 
Consequently, no additional impairment or reversal of impairment 
was recognized in 2022.
For the semiconductor segment, impairment indicators considered 
were a change to discount rate and high energy costs. However, low 
book values compared to market cap and assumed stand along 
price of the segment resulted in no impairment test.
On January 31, 2023 REC Silicon announced the entering into of a 
binding term sheet between its subsidiary REC Solar Grade Silicon 
LLC and Hanwha Solutions for a 10 year take-or pay offtake for FBR 
polysilicon produced at REC Silicon’s facility at Moses Lake, 
Washington. The Offtake provides for the sale to Hanwha Solutions 
of 100% of the prime FBR production from the facility. 
The base price for the Offtake will be determined by market indices 
adjusted for a premium for US-sourced low carbon material. The 
base price is also subject to both a minimum and maximum that 
protects REC Silicon against potential future low market prices that 
could otherwise threaten the long-term prospects for the Company. 
Impairment review conducted at December 31, 2022 included 
evaluating the impacts restarting the FBR facility in Q4 of 2023. 
Forecasts derived from the opportunities listed above could result 
in the partial reversal of impairment previously recorded by the 
Company. However, the Company has not entered into any definitive 
full form supply agreements and it is difficult to estimate prices 
prior to a full form agreement.
BASIS FOR THE IMPAIRMENT TESTS
Climate related risk has been considered in the calculation of value 
in use. The calculation reflects the expected development in the 
cost of emission quotas based on the current regulatory framework. 
There could be changes in environmental regulations impacting the 
company going forward, but no related legislation has been passed 
at the current time that is expected to impact the group. The 
impairment assessment is based on the expectation that any 
increase in cost due to new legislation will be covered by increased 
sales prices, full or partial compensation by incentive schemes or 
increased effectiveness resulting in limited impact on operating 
cash flows.
Future cash flows are estimated on the basis of the budget for the 
next year and the subsequent four forecast years. A terminal value is 
calculated from the estimated cash flows generated in the last 
forecast year. A growth rate of one percent has been used during the 
terminal period for both years presented. EBITDA less capital 
expenditures and changes in working capital have been used to 
estimate future cash flows.
Assets under construction for which investment has been committed 
are included with estimated expenditures to complete and estimated 
cash flows from their operations.
The carrying amounts of cash-generating units include tangible fixed 
assets, right of use assets, intangible assets, and net working capital 
only.
DISCOUNT RATE
The discount rate applied is based on the Company’s cost of capital 
which has been estimated using the weighted average of the 
required rates of return for the Company’s equity and debt (WACC). 
The required rate of return for the Company’s equity is estimated 
using the capital assets pricing model (CAPM). The required rate of 
return on debt is estimated on the basis of a risk-free rate of return 
plus a credit risk premium derived from analysis of the debt costs 
and loading of public companies similar to REC Silicon. The discount 
rate is estimated on an after-tax basis and adjusted to estimate the 
equivalent before tax discount rate using the Company’s estimated 
before and after-tax cash flows and evaluated for reasonableness. 
The discount rates used at December 31, 2022 and 2021 are 
reflected in the table below:
8	
IMPAIRMENTS OF CASH-GENERATING UNITS

67
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Discount rates (%)
	
2022
	
2021
POST-TAX
PRE-TAX
POST-TAX
PRE-TAX
Solar Materials CGU
14.4
17.5
11.8
14.9
KEY ASSUMPTIONS AND SENSITIVITIES
Key assumptions include future revenues (sales prices and sales 
volume), cost of major inputs, conversion costs and efficiency 
(production volume), and maintenance capital expenditures.
Price trends are difficult to predict in the current market 
environment and external views of anticipated market conditions 
differ widely. When possible, REC Silicon has used third party 
analyses to estimate product prices. When third party estimates 
are not available or vary widely, REC Silicon uses internal estimates 
based on experience and market intelligence to estimate market 
conditions and prices. Prior to a full form supply agreement in place 
with Hanwha, estimates of long-term average solar grade 
polysilicon prices used in this analysis are at conservative levels. 
Estimates of future cash flows include the assumption the Moses 
Lake FBR facility will restart during Q4 of 2023. If access to solar 
grade polysilicon markets is not restored and idled capacity is not 
restarted, additional impairment charges would be required. 
Current market conditions result in negative cashflows until FBR 
production is restarted. As a result, the estimated timing of the 
increase in capacity utilization is a key assumption. This sensitivity 
is reflected in the table of sensitivities below in the line volume 
(production and sales).
As a result of the Inflation Reduction Act of 2022 in the United 
States, estimates include a $3 per kilogram credit for solar grade 
polysilicon sales for 10 years. Direct payments from the Internal 
Revenue Service for the first 5 years and tax credits for the 
remaining 5 years.
Costs have been estimated using contractual obligations, third 
party indexes when appropriate, and historical spending trends 
adjusted for inflation.
Capital expenditures required to restart the Moses Lake FBR 
facility have been included in the analysis. Capital expenditures 
necessary to restart FBR include reactor modifications necessary 
to product mono grade quality polysilicon.
The table below presents the estimated change in impairment of 
the Solar Materials CGU due to an isolated change in the key 
assumption for all years. Spending includes variable manufacturing 
costs, fixed manufacturing costs, selling general and administrative 
expenses, and capital expenditures in total. The estimates are 
based on the assumptions used in the December 31, 2022 
impairment analysis.
KEY ASSUMPTIONS FOR 2022
(USD IN MILLION)
CHANGE
ESTIMATED CHANGE 
IN IMPAIRMENT
Post-tax discount rate
+/-1% point
-16.7/+19.5
Sales prices
+/-2%
+/-26.8
Volume (production and sales)
+/-2%
+/-9.2
Spending
+/-2%
-/+4.2
 
Negative amounts represent an estimated increase in impairment.

68
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
CARRYING VALUE
The tables below reflect the development of carrying values for each cash generating unit. 
At December 31, 2022
	
(USD IN MILLION)
 SEMICONDUCTOR 
MATERIALS 
SOLAR 
MATERIALS
OTHER
TOTAL
Trade and other receivables
18.9
0.7
3.6
23.2
Inventories
33.7
4.6
0.0
38.3
Current assets
52.5
5.3
3.6
61.5
Long term assets
93.3
51.4
7.5
152.2
Trade payables and other current liabilities
-30.1
-9.3
-4.4
-43.7
Long term liabilities
-8.6
0.0
0.0
-8.6
Allocation of other
4.7
2.1
-6.8
0.0
Carrying values
111.8
49.5
0.0
161.3
At December 31, 2021
	
(USD IN MILLION)
 SEMICONDUCTOR 
MATERIALS 
SOLAR 
MATERIALS
OTHER
TOTAL
Trade and other receivables
22.7
0.7
5.1
28.5
Inventories
27.0
6.0
0.0
33.1
Current assets
49.7
6.7
5.1
61.5
Long term assets
92.6
16.9
7.8
117.3
Trade payables and other current liabilities
-14.7
-5.2
-6.7
-26.6
Long term liabilities
-13.4
0.0
0.0
-13.4
Allocation of other
5.3
0.9
-6.2
0.0
Carrying values
119.6
19.2
0.0
138.8

69
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
OTHER INVESTMENTS
The Group entered into a joint arrangement in China; Shaanxi Non-
Ferrous Tian Hong REC Silicon Materials Co., Ltd. (Yulin JV) in 
February 2014. On February 1, 2018, REC Silicon Pte. Ltd (REC 
Silicon) and Shaanxi Non-Ferrous Tian Hong New Energy Co. Ltd. 
(SNF) entered into a supplemental agreement in relation to 
outstanding capital contributions. 
This supplemental agreement reduced REC Silicon’s equity 
ownership to 15 percent and REC Silicon agreed to pay interest of 
USD 0.6 million to the Yulin JV and a penalty of USD 10.4 million to 
SNF in annual installments. The remaining liability associated with 
this agreement was zero at December 31, 2022 and USD 4.7 
million at December 31, 2021.
REC Silicon’s option to either buy back the 34 percent equity 
interest from SNF pursuant to a valuation and public bidding 
process as required by PRC state-owned asset disposal regulations 
expired in Q3 of 2021. REC Silicon currently maintains its 
previously reported 15 percent equity interest in the Yulin JV.
The corporate governance of the Yulin JV remains unchanged from 
previous reports. At the time that REC Silicon’s equity interest in 
the Yulin JV was reduced to 15 percent, the Board of Directors of 
the Yulin JV was adjusted to five directors, of which four are 
appointed by SNF and one is appointed by REC. REC nominates the 
Chief Technology Officer while the remaining executive 
management of the Yulin JV is nominated by SNF. In 2019 company 
management determined that REC did not have significant 
influence over the operational and financial decisions of the Yulin 
JV. Factors included large majority owner and flow of information. 
At that point the company changed from the equity method of 
accounting to fair value.
In accordance with International Financial Reporting Standards 
(IFRS) 9, the carrying amount of the Yulin JV is reported at fair value 
and the Company has designated the investment as an equity 
security at fair value through profit and loss (FVTPL). 
2022
At year-end 2022, REC Silicon performed an analysis to estimate 
the fair value of its investment in the Yulin JV using discounted 
estimated future cashflows. The market value of the investment 
was estimated using the discounted estimated future cash flows 
from Yulin JV operations over a 5-year period with the last year 
used as a basis for the terminal value. A discount rate of 14.4 
percent was estimated on an after-tax basis and adjusted to 
estimate the equivalent before tax discount rate of 17.5 percent. 
As a result, estimated enterprise value less long-term debt results 
in a negative value of approximately USD 1.0 million for REC 
Silicon’s 15 percent equity interest. REC Silicon has no obligation to 
contribute additional equity as a result of these deficits. 
Accordingly, REC Silicon’s investment in the Yulin JV remains at a 
value of zero at December 31, 2022. The value of the JV is subject 
to uncertainty and is very sensitive to changes in discount rates, 
sales prices, volume and spending.
2021
At year-end 2021, REC Silicon performed an analysis to estimate 
the fair value of its investment in the Yulin JV using discounted 
estimated future cashflows. Due to the impact of continued delays 
in realizing designed production capacities, and continued 
deterioration in REC Silicon’s ability to influence business decisions, 
increases in anticipated cashflows have not been realized. In 
addition, the Yulin JV has accumulated additional long-term debt to 
fund operating losses, to complete construction, and to maintain 
operations. The market value of the investment was estimated 
using the discounted estimated future cash flows from Yulin JV 
operations over a 5-year period with the last year used as a basis 
for the terminal value. A discount rate of 11.8 percent was 
estimated on an after-tax basis and adjusted to estimate the 
equivalent before tax discount rate of 14.9 percent. As a result, 
estimated enterprise value less long-term debt results in a negative 
value of approximately USD 13.1 million for REC Silicon’s 15 
percent equity interest. REC Silicon has no obligation to contribute 
additional equity as a result of these deficits. Accordingly, REC 
Silicon’s investment in the Yulin JV remains at a value of zero at 
December 31, 2021.
KEY ASSUMPTIONS FOR 2022
(USD IN MILLION)
CHANGE
ESTIMATED CHANGE IN  
REC’S EQUITY VALUE
Post-tax discount rate
+/-1% point
-7.8/+9.0
Sales prices
+/-2%
+/-8.3
Volume (production and sales)
+/-2%
+/-3.8
Spending
+/-2%
-/+0.4
 
The Yulin JV continues to increase production, quality performance, and is steadily increasing product sales. Both silane units and the FBR 
reactors have demonstrated design capacities and utilization rates are increasing. The Yulin JV is increasing production of high purity 
granular polysilicon using high purity liners.
9	
INVESTMENTS

70
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
The Group has related party relationships with its subsidiaries, associates, joint ventures and with its Group Management and Board of Directors. 
Transactions with subsidiaries have been eliminated on consolidation and are not reported as related party transactions in the consolidated 
financial statements for the Group.
KEY MANAGEMENT COMPENSATION, SHAREHOLDINGS, LOANS ETC.
Group Management and Board of Directors’ compensation, ownership of REC Silicon ASA shares, options and bonds, loan agreements and 
guarantees are shown in note 16. 
RELATED COMPANIES
REC Silicon Inc. invoiced the Yulin JV USD 0.3 million in 2022 and USD 0.8 million in 2021 for engineering and project services. 
In Q3 2022, the Yulin JV paid USD 2.4 million to REC Silicon for invoices related to engineering and project services, REC Silicon made the 
final payment in the amount of USD 4.7 million to SNF to resolve the 2018 supplemental equity settlement agreement. (See note 9 above). 
REC Silicon has an agreement with QCells, a Hanwha company, for QCells to provide services to REC Silicon. In 2022 services in the amount 
of USD 0.2 million were incurred.
See note 30 below for additional information on the fair value of financial instruments.
After the settlement of the indemnification loans in Q1 2022, REC Silicon no longer has any material derivatives.
10	
RELATED PARTY TRANSACTIONS
11	
DERIVATIVE FINANCIAL INSTRUMENTS

71
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Trade and other receivables
(USD IN MILLION)
2022
2021
Trade receivables and accrued revenues
26.4
37.2
Provision for loss on trade recivables
-9.6
-14.4
Trade receivables - net
16.8
22.8
Prepaid costs
6.3
5.4
VAT and other public taxes and duties receivables
0.0
0.0
Other non-current and current receivables
0.1
1.3
Total Trade and other receivables
23.3
29.6
Specification of provision for loss on trade receivables
(USD IN MILLION)
2022
2021
 At January 1 
-14.4
-14.4
 Change in provisions 
4.8
0.0
 At December 31 
-9.6
-14.4
 
The provision for doubtful accounts includes the review of expected credit losses (ECL) based upon historical experience. 
In the third quarter of 2022 REC Silicon exhausted efforts to collect from a previously impaired customer. As a result, the company wrote 
off USD 4.8 million of receivables as well as reversed the loss on receivables for the same customer. This resulted in a net zero change to 
receivables. REC will continue to seek all collection options on remaining impaired accounts. There was no bad debt expense recorded in 
2022. The provision for loss on trade receivables is limited a small number of customers and although unlikely that any funds will be 
collected, the provision will remain until all efforts are exhausted (see note 30). At December 31, 2022 the review of the provision included 
the fact that the Company has not experienced any bad debt since 2018.
12	
RECEIVABLES AND PREPAYMENTS

72
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
Inventories in the statement of financial position
	
2022
	
2021
(USD IN MILLION)
BEFORE 
WRITEDOWNS
WRITEDOWNS
AFTER 
WRITEDOWNS
BEFORE 
WRITEDOWNS
WRITEDOWNS
AFTER 
WRITEDOWNS
Stock of materials, merchandise, production supplies
12.1
0.0
12.1
3.3
0.0
3.3
Spare parts
42.8
-33.4
9.4
42.6
-33.7
8.9
Work in progress
9.4
-2.3
7.1
11.9
-2.0
9.9
Finished goods
12.8
-3.1
9.7
15.4
-4.4
11.0
Total
77.1
-38.8
38.3
73.1
-40.1
33.1
 
Inventories have been written down to estimated net realizable values. Write-downs of materials and spare parts represent the estimated 
obsolescence related to items held in inventories at cost. Write-downs of work in progress and finished goods have been estimated by 
comparing the net realizable value of anticipated sales to the manufacturing costs of items held in inventory.
Cash and cash equivalents are primarily bank deposits.
Restricted bank accounts (not included as cash and cash equivalents)
(USD IN MILLION)
2022
2021
Restricted bank accounts non-current
0.0
0.0
Restricted bank accounts current
0.8
4.4
Total restricted bank accounts
0.8
4.4
 
At December 31, 2022 restricted bank accounts consisted of USD zero for security for the indemnification loan, USD 0.2 million security 
for bank guarantees for REC Solar AS (a subsidiary of the Company) and restricted cash for the US subsidiaries of USD 0.6 million. At 
December 31, 2021, restricted bank accounts consisted of USD 3.6 million security for the indemnification loan, USD 0.2 million security 
for bank guarantees for REC Solar AS (a subsidiary of the Company) and restricted cash for the US subsidiaries of USD 0.5 million.
13	
INVENTORIES
14	
CASH AND CASH EQUIVALENTS AND RESTRICTED BANK ACCOUNTS

73
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
The following shareholders held one percent or more of the total outstanding shares in REC Silicon ASA at December 31.
2022
2021
NAME OF SHAREHOLDERS
NO. OF SHARES
OWNERSHIP
NO. OF SHARES
OWNERSHIP
HANWHA 1)
140,208,552
33.33%
0
0.00%
BNP PARIBAS
Nominee
12,619,185
3.00%
5,949,185
1.60%
MORGAN STANLEY & CO. LLC
Nominee
9,614,334
2.29%
10,579,700
2.84%
NORDNET LIVSFORSIKRING AS
Ordinary
5,418,313
1.29%
4,954,248
1.33%
FAZAJU AS
Ordinary
30,000
0.01%
4,540,000
1.22%
AKER HORIZONS HOLDING AS
Ordinary
0
0.00%
91,995,551
24.70%
TOTAL SHARES OUTSTANDING
420,625,659
372,412,658
1	 Hanwha Solutions and Hanwha Corporation, (together “Hanwha”) holds shares via two nominee accounts, Citibank N.A. 89,733,473 shares, Hongkong and Shanghai 
Banking Corp 50,475,079 shares.
The list of shareholdings above is based on the VPS shareholder 
register at December 31, 2022 and 2021. Actual shareholding may 
deviate due to the use of nominee accounts, share lending, forward 
contracts or other contractual arrangements.
At December 31, 2022, REC Silicon ASA had 37,280 shareholders 
(39,420 at December 31, 2021). The total number of outstanding 
shares was 420,625,659 at December 31, 2022 and 372,412,658 
at December 31, 2021 each with a par value of NOK 1.
PRIVATE PLACEMENT OF EQUITY 
On November 18, 2021, the Company announced that Aker 
Horizons Holding AS, REC Silicon and Hanwha Solutions 
Corporation entered into an agreement pursuant to which REC 
Silicon shall issue, and Hanwha Solutions shall subscribe for, 
48,213,001 new shares in REC Silicon at a subscription price of 
NOK 20 per share, totaling approximately NOK 964 million in 
proceeds in a directed share issue. The Share Issue was 
implemented based on the existing authorization granted to the 
board of REC Silicon. Aker Horizons sold and Hanwha Solutions 
shall acquire 21,891,275 existing shares in the Company at a price 
of NOK 20 per share simultaneously with the Share Issue. This 
transaction settled on January 19, 2022. After the settlement of 
the transaction in 2022 The new share capital of the Company is 
NOK 420,625,659, divided into shares 420,625,659, each with a 
par value of NOK 1.
At the Annual General Meeting on June 22, 2022, the Board was 
authorized to increase the share capital with up to NOK 
84,125,000, which was approximately 20 percent of the share 
capital at that time, through one or more increases in the share 
capital. The Annual General meeting also authorized the Board to 
acquire treasury shares in the Company (up to a maximum of ten 
percent of the nominal value of the existing share capital). Shares 
may be acquired at minimum NOK 1 per share and maximum NOK 
150 per share. The authorization to acquire treasury shares has not 
been used and remained available at December 31, 2022. Both 
authorizations were valid until the 2023 Annual General Meeting, 
but in any event not longer than 15 months.
15	
SHAREHOLDER INFORMATION

74
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022

The Board’s statement on executive management remuneration 
(the “statement”) has been prepared in accordance with the 
provisions of the Norwegian Public Companies Act (PLA), the 
Norwegian Accounting Act, and the Norwegian Code of Practice for 
Corporate Governance. Following amendments to the PLA, the 
statement is now subject to new and more detailed requirements 
for determining salaries and other remuneration. From January 1, 
2021, the board is required to prepare both guidelines for such 
determinations (section 6-16 (a)) and a report that provides an 
overview of paid and outstanding remuneration (section 6-16(b)). 
The guidelines will be forward-looking and will be adopted by the 
Annual General Meeting through a binding vote, while the report will 
be retrospective and will be subject to an advisory vote at the 
Annual General Meeting 
REC Silicon’s board has prepared proposed guidelines for the 
company’s executive remuneration policy in accordance with the 
provision in the new section 6-16 (a). The proposed guidelines, 
which provide a broader and deeper discussion of the principles for 
remuneration to key management, were effective from 2021 
onwards. The guidelines were presented to the Annual General 
Meeting in 2021, where a binding vote on these guidelines was held 
in accordance with the new regulations. The guidelines are available 
on REC Silicon’s website. The executive management remuneration 
report in accordance with the new regulations will be prepared for 
the for the Annual General Meeting in 2023.
The guidelines for determination of salary and other compensation 
for leading employees, as outlined in the annual general meeting in 
2022, have been complied with in 2022. See www.recsilicon.com/
investors/agm for the Statement of Remuneration.
The Board of Directors had previously implemented incentive 
programs during previous periods whereby employee entitlements 
are linked to the share price development of the Company’s shares. 
There were no shares granted in 2022. See note 32 for details of 
share-based compensation programs.
Salary and other compensation to the Group’s Board of Directors 
and Management for 2022 and 2021 are described below.
 
Compensation of the Group Management for 2022
(AMOUNTS IN USD)
NAME
BASE SALARY
BONUS 
EARNED AND 
MAX %
SHARE BASED 
COMPENSATION 
EARNED
SHARE BASED 
COMPENSATION 
PAID
PENSION 
BENEFITS
OTHER 
TAXABLE 
BENEFITS
SEVERANCE
Kurt Levens
131,414
15,102
55,694
58,569
0
30,681
0
President and CEO from September 28, 2022
50%
James A. May II
243,255
0
0
34,093
27,450
162,460
514,695
President and CEO to September 28, 2022
50%
Jeong Ryul Yun
49,234
23,540
0
0
0
61,024
0
CFO From October 3, 2022
110%
Douglas Moore
124,336
4,116
0
0
12,529
52,983
0
CFO to October 2, 2022
25%
Dongjin Jung
14,497
4,921
0
0
0
15,094
0
Chief Strategy Officer from November 1, 2022
50%
Total 2022
562,735
47,678
55,694
92,662
39,979
322,241
514,695
 
Compensation of the Group Management for 2021
(AMOUNTS IN USD)
NAME
BASE SALARY
BONUS 
EARNED AND 
MAX %
SHARE BASED 
COMPENSATION 
EARNED
SHARE BASED 
COMPENSATION 
PAID
PENSION 
BENEFITS
OTHER 
TAXABLE 
BENEFITS
SEVERANCE
Tore Torvund  
760,044
0
313,164
254,471
105,807
122,088
414,929
President and CEO to November 30, 2021
100%
James A. May II
23,080
7,530
0
0
0
7,440
0
President and CEO from December 1, 2021
50%
James A. May II
275,961
89,658
36,626
39,924
20,300
2,108
0
CFO to November 30, 2021
50%
Douglas Moore
10,685
1,169
0
0
748
3,188
0
CFO from December 1, 2021
17.5%
Total 2021
1,069,770
98,357
349,790
294,396
126,855
134,824
414,929
16	
MANAGEMENT AND BOARD OF DIRECTORS’ COMPENSATION, ​LOANS, SHARES, BONDS

75
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
All amounts are exclusive of social security tax. There were no 
payments and benefits from the Group for services outside their 
functions as Group Management. Base salary represents the 
amount, including holiday pay that was paid in the year.
Bonus amounts represent bonuses earned during each year and are 
normally paid and reported as taxable income for the employee in 
the subsequent year.
Share-based compensation amounts represent synthetic share 
option programs further described in note 32. The estimated fair 
value of the options is expensed over the estimated vesting periods. 
The amounts shown above as earned are the amounts expensed in 
the relevant year. Amounts reported as share-based compensation 
earned are derived using the Black Scholes option pricing model and 
may not match actual payments made depending upon the market 
value of the Company’s stock on the exercise date. During 2022 
there were USD 0.5 million in cash payments made with respect to 
share-based compensation, and USD 0.7 million in 2021.
Pension benefits include benefits earned with respect to defined 
benefit plans and contributions related to defined contribution 
plans. 
Other taxable benefits include housing, company car, cash in lieu of 
paid time off, and certain other benefits. The benefits vary, and the 
amounts in the table are the amounts that are taxable based on 
rules and regulations in the relevant tax jurisdictions.
 
Compensation of the Board of Directors paid in 2022 
 
(AMOUNTS IN USD)
NAME
MEMBER AT  
DECEMBER 31, 2022
BOARD  
COMPENSATION
Tae Won Jun
Yes
0
Dong Kwan Kim
Yes
0
Renate Oberhoffer-Fritz
Yes
48,054
Vivian Bertseka
Yes
0
Roberta Benedetti
Yes
0
Koo Yung Lee
No
0
Maeng Yoon Kim
No
0
Seung Deok Park
No
0
Annette Malm Justad
No
15,585
Auden Stensvold
No
12,988
Heike Heiligtag
No
24,225
Total 2022
100,852
 
Compensation of the Board of Directors paid in 2021 
 
(AMOUNTS IN USD)
NAME
MEMBER AT  
DECEMBER 31, 2021
BOARD  
COMPENSATION
Annette Malm Justad
Yes
50,393
Auden Stensvold
Yes
39,006
Espen Klitzing
No
6,784
Inger Berg Orstavik
No
6,784
Total 2021
102,967

76
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
LOANS AND GUARANTEES FOR GROUP MANAGEMENT, BOARD OF DIRECTORS AND SHAREHOLDERS
December 31, 2022 there was a loan in the amount of USD 40 thousand to Dongjin Jung. In 2021 there were no outstanding loans or 
guarantees to members of Group Management, Board members or shareholders or their closely related parties. 
SHAREHOLDINGS, OPTIONS AND BONDS
The number of shares and options owned by members of the Board of Directors and the Group Management, including closely related 
parties, are shown in the table below. The table includes board members and key management at December 31, 2022 and 2021. Refer to 
note 32 for details of the share option program.
The table includes those that were members at December 31, 2022
NAME
OPTIONS
SHARES
Kurt Levens
Group Management
388,600
440
Jeong Ryul Yun
Group Management
0
0
Dongjin Jung
Group Management
0
0
Tae Won Jun
Board of Directors
0
0
Dong Kwan Kim
Board of Directors
0
0
Dr. Renate Oberhoffer-Fritz
Board of Directors
0
0
Vivian Bertseka
Board of Directors
0
0
Roberta Benedetti
Board of Directors
0
0
The table includes those that were members at December 31, 2021
NAME
OPTIONS
SHARES
James A. May II
Group Management
293,818
274,204
Douglas Moore
Group Management
0
0
Kristian Røkke
Board of Directors
0
91,995,551
Annette Malm Justad
Board of Directors
0
30,000
Auden Stensvold
Board of Directors
0
0
Lene Landøy
Board of Directors
0
0
Seung Deok Park
Board of Directors
0
0
 
Details of options outstanding at December 31, 2022. 
	
NUMBER OF OPTIONS
NAME
KURT LEVENS
JEONG RYUL YUN
DONGJIN JUNG
STRIKE PRICE NOK
2021 Program
133,277
0
0
17.5
2020 Program
121,602
0
0
3.5
2019 Program
82,532
0
0
8.1
2018 Program
51,189
0
0
15.2
Total
388,600
0
0

77
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Financial liabilities, interest bearing
(USD IN MILLION)
2022
2021
Non-current financial liabilities, interest bearing
Senior Secured Bond
0.0
110.0
Capitalized Borrowing Cost 1)
0.0
-0.1
Grant County WA tax settlement (USD)
4.2
5.3
Total non-current financial liabilities, interest bearing
4.2
115.2
Current financial liabilities, interest bearing
Senior Secured Bond
110.0
0.0
Indemnification Loan (NOK)
0.0
10.8
Capitalized Borrowing Cost 1)
-0.1
-0.5
Grant County WA tax settlement (USD)
1.1
1.0
Total current financial liabilities, interest bearing
111.0
11.3
1) Amortized as part of effective interest.
 
Movements in borrowing
(USD IN MILLION)
INDEMNIFICATION 
LOAN
USD SENIOR 
SECURED BOND
TAX SETTLEMENT 
NOTE
TOTAL
Balance at January 1, 2022
10.8
109.4
6.3
126.4
Payments of borrowings 1)
-10.7
0.0
-1.0
-11.7
Change capitalized borrowing cost
0.0
0.5
0.0
0.5
Effect of changes in foreign exchange rates
-0.1
0.0
0.0
-0.1
Balance at December 31, 2022
0.0
109.9
5.3
115.2
1) 	Payment of the indemnificaiton loan was USD 10.7 million and included USD 7.1 million from cash and USD 3.6 million from restricted cash. See note 14
On October 14, 2020, the Company entered into a settlement 
agreement with Grant County, Washington settling its property tax 
dispute for tax years 2012 through 2015. REC Silicon agreed to 
pay Grant County USD 3.0 million by December 15, 2020, and USD 
1.75 million each year for the next six years. The settlement 
resulted in the recognition of a note payable using an interest rate 
of 11.5 percent used to impute the value of the liability. The note is 
effectively secured, as a matter of law, by the real property at the 
Moses Lake plant. At December 31, 2022, the remaining fair value 
of the property tax note was USD 5.3 million. Total remaining 
undiscounted payments on the property tax note are USD 7.0 
million.
The Company and certain subsidiaries are jointly and severally liable 
for the USD Senior Secured Bond (REC04, ISIN NO0010820590). 
REC Silicon ASA, REC Silicon AS, REC Silicon, Inc., REC Solar Grade 
Silicon, LLC., REC Advance Silicon Materials, LLC., and REC Silicon 
Pte. Ltd. have provided a guarantee. In addition, the equity and 
substantially all of the tangible and intangible assets of REC 
Advanced Silicon Materials, LLC. have been pledged as security in 
the bond agreement. The net book value of net assets pledged as 
security was approximately USD 118.0 million at December 31, 
2022 and approximately USD 77.6 million at December 31, 2021. 
Covenants imposed by the bond include a requirement to maintain 
minimum liquidity of USD 15 million and include a change of control 
provision which grants the bondholders a put option entitling them 
to cancel the commitments and declare all outstanding amounts 
and accrued unpaid interest due and payable if a shareholder or a 
group of shareholders gains control of more than 50 percent of the 
share capital. In addition, the bond agreement provides limitations 
on borrowing, asset sales, and other transactions under certain 
conditions. The bond agreement includes a cross default clause 
should the Company default on any financial indebtedness above 
certain threshold amounts. Please see the registration document at 
www.recsilicon.com for additional details.
At December 31, 2022 and 2021, the Company had complied with 
all financial covenants and other restrictions in the loan agreements.
For further information regarding lease liabilities see note 7.
17	
BORROWINGS

78
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
The following are the contractual maturities of financial instruments excluding provisions and retirement benefit obligations:
AT DECEMBER 31, 2022
MATURITY ANALYSIS - CONTRACTURAL PAYMENTS TO BE MADE, INCLUDING INTEREST
(USD IN MILLION)
CARRYING 
AMOUNT
TOTAL
0-6 
MONTHS
7-12 
MONTHS
2024
2025
2026
2026
AFTER
2026
USD Senior secured bond
109.9
110.0
110.0
0.0
0.0
Grant County WA tax settlement
5.3
7.0
0.0
1.8
1.8
1.8
1.8
Accrued Finance Costs
2.8
6.3
6.3
Trade payables and other liabilities
44.8
44.8
43.5
1.3
0.0
0.0
0.0
0.0
Lease Liabilities
68.6
113.6
5.6
5.6
14.5
14.5
14.5
14.5
44.4
Total
231.4
281.7
165.4
8.6
16.3
16.3
16.3
14.5
44.4
 
AT DECEMBER 31, 2021
MATURITY ANALYSIS - CONTRACTURAL PAYMENTS TO BE MADE, INCLUDING INTEREST
(USD IN MILLION)
CARRYING 
AMOUNT
TOTAL
0-6 
MONTHS
7-12 
MONTHS
2023
2024
2025
2026
AFTER
2026
USD Senior secured bond
109.4
129.0
0.0
0.0
110.0
Grant County WA tax settlement
6.3
8.8
0.0
1.8
1.8
1.8
1.8
1.8
Accrued Finance Costs
2.8
19.0
6.3
6.3
6.3
Trade payables and other liabilities
28.0
28.0
26.4
0.0
0.9
0.7
Lease Liabilities
70.5
123.3
5.6
5.6
11.0
14.4
14.4
14.4
58.0
Indemnification loan
10.8
10.8
10.8
Total
227.8
318.8
17.1
8.1
118.1
1.8
1.8
1.8
0.0
For information regarding provisions see note 20. For information regarding retirement benefit obligations see note 19.
The differences between carrying amounts and total expected payments in the tables above are due primarily to the effect of discounting. 
Interest payments are estimated using the interest rates at December 31, 2022 and 2021. All cash flows are undiscounted. Amounts in 
other currencies than USD are translated at the exchange rates at December 31.
The nominal interest rates and currency distribution at December 31, 2022 were as follows
INTEREST RATE (%)
CURRENCY
AMOUNTS IN MILLION
BORROWER
USD Senior Secured Bond
11.50
Fixed
USD
110.0
REC Silicon ASA
Grant County WA tax settlement
11.50
Fixed
USD
5.3
REC Solar Grade Silicon
The nominal interest rates and currency distribution at December 31, 2021 were as follows
INTEREST RATE (%)
CURRENCY
AMOUNTS IN MILLION
BORROWER
USD Senior Secured Bond
11.50
Fixed
USD
110.0
REC Silicon ASA
Grant County WA tax settlement
11.50
Fixed
USD
6.3
REC Solar Grade Silicon

79
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Recognized income tax expense
(USD IN MILLION)
2022
2021
Current income tax expense (-) / benefit (+)
0.0
0.0
Deferred tax expense (-) / benefit (+)
0.0
0.0
Total income tax expense (-) / benefit (+) in the statement of income
0.0
0.0
 
Relationship of income tax expense/benefit to profit/loss from continuing operations
(USD IN MILLION)
2022
2021
Profit/loss before tax
-87.0 
-43.5
Tax calculated at domestic tax rates applicable to profits /losses in the respective countries
18.5 
9.3
Effects of changes in tax rates and use of another tax rate for parts of profits /losses
-0.8 
-0.9
Effects of not recognized deferred tax assets, including reversal of previous years
-17.7 
-6.9
Change in estimates of prior years income taxes
0.0
0.0
Other permanent differences
0.0
-1.5
Total income tax expense (-) / benefit (+) in the statement of income
0.0
0.0
Effective tax rate
0%
0%
Other permanent differences in 2022 and 2021 are related to tax calculations in REC Silicon ASA where the tax balances are denominated 
in NOK and the Financial Statements are in USD. This gives rise to differences in profit/loss between the tax calculation and the Financial 
Statement.
The income tax calculation for the Group is primarily based on blended corporate income tax rates of 22 percent in Norway and 
approximately 24.0 percent in the USA.
Income tax for REC Silicon in the USA is based on nominal 21 percent federal tax rate plus estimated state taxes. The effective tax rate for 
REC Silicon in the USA was 0 percent in 2022 and 2021. 
18	
INCOME TAX EXPENSE AND DEFERRED TAX ASSETS AND LIABILITIES

80
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
Income tax assets and liabilities in the statement of financial position
(USD IN MILLION)
2022
2021
Current tax assets
0.0
0.0
Current tax liabilities
0.0
0.0
Net current tax assets (+) / liabilities (-)
0.0
0.0
Deferred tax assets
0.0
0.0
Deferred tax liabilities
0.0
0.0
Net deferred tax assets (+) / liabilities (-)
0.0
0.0
 
Deferred tax assets and liabilities, based on classification as current and non-current are as follows 
(USD IN MILLION)
2022
2021
Deferred tax assets
Deferred tax asset to be recovered after 12 months
61.4
57.9
Deferred tax asset to be recovered within 12 months
0.0
2.4
Offset deferred tax assets and liabilities
-61.4
-60.3
Total
0.0
0.0
Deferred tax liabilities
Deferred tax liability to be settled after 12 months
61.4
60.3
Offset deferred tax assets and liabilities
-61.4
-60.3
Total
0.0
0.0
Net deferred tax liabilities
0.0
0.0
Tax losses and tax credit carryforwards are presented as deferred tax assets to be recovered after 12 months in the table above.
The following are the major deferred tax liabilities (-) and assets (+) recognized by the Group and movements during 2022
(USD IN MILLION)
BALANCE 
JAN 1
RECOGNIZED IN 
INCOME
RECOGNIZED IN 
OCI/EQUITY
TRANSLATION 
DIFFERENCE
BALANCE 
DEC 31
Total non-current assets
-58.2
-7.7
0.0
6.3
-59.6
Total non-current liabilities
-0.1
0.1
0.0
0.0
0.0
Total current liabilities
2.4
-2.2
0.0
-0.2
0.0
Tax losses and tax credits carry-forward recognized 
55.9
9.8
0.0
-6.1
59.6
Total
0.0
0.0
0.0
0.0
0.0
 
The following are the major deferred tax liabilities (-) and assets (+) recognized by the Group and movements during 2021
(USD IN MILLION)
BALANCE 
JAN 1
RECOGNIZED IN 
INCOME
RECOGNIZED IN 
OCI/EQUITY
TRANSLATION 
DIFFERENCE
BALANCE 
DEC 31
Total non-current assets
-60.7 
0.6 
0.0 
2.0 
-58.2 
Total non-current liabilities
-0.2 
0.1 
0.0 
0.0 
-0.1 
Total current liabilities
5.5 
-3.0 
0.0 
-0.1 
2.4 
Tax losses and tax credits carry-forward recognized 
55.4 
2.3 
0.0 
-1.9 
55.9 
Total
0.0 
0.0 
0.0 
0.0 
0.0 
1)	Tax losses and tax credit carry-forwards recognized at December 31, 2022 related to REC Silicon in the USA were USD 0.0 million and USD 97.1 million related to 
REC Silicon ASA. Tax losses and tax credit carry-forwards recognized at December 31, 2021 related to REC Silicon in the USA were USD 0.0 million and USD 55.9  
million related to REC Silicon ASA.

81
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Accumulated income taxes recognized to equity at December 31
(USD IN MILLION)
2022
2021
Effect of transition to IAS 39 at January 1, 2005
 2.3 
 2.3 
Effect of actuarial gains and losses
 -4.8 
 -4.8 
Effect of conversion of convertible bonds
 -61.0 
 -61.0 
Effect of costs for capital increase
12.9
 12.9 
Effect of translation differences on loans as part of net investment
 12.6 
 12.6 
Total deferred tax
 -37.9 
 -37.9 
Current tax - effect of costs for capital increase
 13.1 
 13.1 
Total
 -24.8 
 -24.8 
 
Amounts in table above exclude translation differences on deferred tax. Negative numbers are a reduction to equity. 
The following main deferred tax assets have not been recognized at December 31
(USD IN MILLION)
2022
2021
Total non-current assets
79.1
78.0
Total current assets
1.2
2.1
Total non-current liabilities
19.2
14.7
Total current liabilities
8.6
9.1
Tax losses carry forward
360.5
397.3
Total
468.6
501.2
 
Distribution of the deferred tax assets that have not been recognized at December 31
(USD IN MILLION)
2022
2021
REC Silicon ASA (Norway)
40.2
67.8
REC Solar AS (Norway)
177.9
178.1
REC Silicon US operations
266.7
253.4
Other
-16.3
1.9
Total
468.6
501.2
 
The deferred tax asset in the United States was generated due to net operating losses on a tax basis, the accelerated reversal of book to tax 
differences for depreciation caused by the recognition of impairment (financial statement only), and other taxable temporary differences 
which are expected to reverse on a more definite schedule. The deferred tax asset in the United States associated with net operating losses 
was USD 159.2 million at December 31, 2022 includes USD 127.8 million associated with net operating losses generated in 2017 and prior 
years which expire between 2031 and 2037. Deferred tax assets of USD 31.4 million are due to net operating losses generated after 2017 
which do not expire.
In the United States, in the event of a change in the ultimate company’s ownership, utilization of net operating losses and tax credit carry 
forwards are subject to certain limitations under Section 382 of the Internal Revenue Code. The company initiated a study in 2022, however 
results are not final at this time. The above table presents as if no limitation has occurred. In the event that an ownership change according 
to Section 382 occurred, the company would be limited to how much net operating loss is available in future years. The result could be that 
net operating losses expire unused. A final conclusion to the study will be completed in 2023.
TAX AUDIT IN NORWAY
The Norwegian Tax office has notified REC Silicon ASA that they consider to change the company’s income tax assessment for the years 
2019-2021. The basis for this notification is an ongoing tax audit relating to whether interest should have been charged on loans provided 
from REC Silicon ASA to Rec Silicon Inc. and Rec Solar Grade Silicon LLC. As a temporary measure, due to the financial situation in these 
subsidiaries, the company has not charged interest on the loans in the period under tax audit. The company has responded to the tax office’s 
notification and the company maintains its view that the subsidiaries have not had debt bearing capacity in this period. The company has not 
recognized any deferred tax asset relating to its tax losses carry forward. 
Deferred tax assets have not been recognized due to requirements in IAS 12 for convincing evidence of available future taxable income to 
offset prior tax losses. In Norway, net operating losses do not expire.

82
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
The cost of defined pension benefit plans is expensed in the period that the employee renders services and becomes eligible to receive 
benefits. The cost of defined contribution plans is expensed as contributions become payable.
REC Silicon has an employer-sponsored defined contribution retirement plan (401 (k)) for employees in the United States. The REC Silicon 
subsidiary REC Advanced Silicon Materials LLC (ASiMI) in the United States had defined benefit plans at the time it was acquired in 2005. 
At that time, these plans were frozen, and no future benefits are accruing to the members of the plans. Previous pension rights remain 
unchanged and are fully vested. The tables below for defined benefit plans are related to Advanced Silicon Materials LLC only.
For defined benefit plans, the plan assets and the projected benefit obligations were measured at December 31, 2022 and 2021. An 
independent actuary performed actuarial calculations. The present value of the projected defined benefit obligation, and the related current 
service cost, were measured using the projected unit credit method. 
Defined benefit plans
(USD IN MILLION)
2022
2021
Gross retirement benefit obligations at January 1
44.2
46.8
Interest cost on pension obligations
1.2
1.1
Remeasurements recognized through OCI
-10.3
-2.1
Benefits paid, paid-up policies and disability obligation
-1.6
-1.6
Gross retirement benefit obligations at December 31
33.5
44.2
Fair values of plan assets at January 1
30.8
27.9
Actuarial return on plan assets
-6.0
2.9
Pension premiums
1.6
1.6
Benefits paid, paid-up policies and disability reserve
-1.6
-1.6
Fair value of plan assets at December 31
24.8
30.8
Funded status at December 31
8.7
13.4
Net retirement benefit obligations at December 31
8.7
13.4
 
The plan assets relate to one of three ASiMI plans and are currently invested in a mix of 70% equity funds and 30% fixed income funds.
Retirement benefit obligations in the statement of financial position
(USD IN MILLION)
2022
2021
Net retirement benefit obligations at January 1
13.4
18.9
Net periodic benefit costs including net interest
0.4
0.5
Remeasurements recognized through OCI
-3.5
-4.4
Pension premiums and benefits paid
-1.6
-1.6
Net retirement benefit obligations at December 31
8.6
13.4
 
The amounts recognized in the statement of income are as follows
(USD IN MILLION)
2022
2021
Total benefit plans
0.0
0.0
Defined Contribution
2.4
1.7
Total contribution expenses (see note 24)
2.4
1.7
Net interest expense
0.4
0.5
19	
RETIREMENT BENEFIT OBLIGATIONS AND EXPENSES

83
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Remeasurements of the net defined benefit liability recognized through Other Comprehensive Income (gains (-)/losses (+))
(USD IN MILLION)
2022
2021
Experience adjustments
0.2
-0.5
Effects of changes in assumptions
-10.4
-1.6
Total remeasurements (gains (-)/losses (+)) on gross retirement benefit obligations
-10.3
-2.1
Return on plan assets, excluding amounts included in interest
6.8
-2.3
Total remeasurements (gains (-)/losses (+)) recognized through Other Comprehensive Income
-3.5
-4.4
 
During 2022 the effects of changes in assumptions were due to an increase in discount rate and changes in financial and demographic 
assumptions for the ASiMI plans.
The cumulative re-measurement loss recognized to equity through other comprehensive income was USD 17.6 million before income taxes 
at December 31, 2022. Of this, a loss of USD 17.6 million was related to ASiMI (excluding translation difference).
At December 31, 2022, the mortality table was based on Pri-2012 total dataset base rate mortality table with projected generationally 
using MP-2021. The Society of Actuaries (SOA) is an actuarial organization that periodically reviews mortality data and publishes mortality 
tables and improvement scales. In October 2019, the SOA released the Pri-2012 Mortality Tables for private-sector retirement plans in the 
U.S. The Pri-2012 report contains different sets of mortality tables based on complete dataset or various subsets. The Total dataset base 
rate table was selected. 
The principal actuarial assumptions used to determine retirement benefit obligations at December 31
2022
2021
Discount rate
5.10
2.7
Future salary increases
NA
NA
Future pension increases
NA
NA
Future increase in social security base amount
NA
NA
Future turnover
NA
NA
 
The assumptions used to determine the benefit cost for the year are determined at the beginning of the year. The expected return for the 
ASiMI plans equals the discount rate. 
The expected remaining service life until retirement for participants of the defined benefit obligation for the ASiMI plans are approximately 
7.3 years at December 31, 2022 and 7.4 years at December 31, 2021. Pension premiums of USD 1.5 million are expected to be paid during 
2023 to the ASiMI defined benefit plans.
The maturity profile includes the weighted average duration of the defined benefit obligations and includes items such as timing of the 
benefit payments. The weighted average duration of the defined benefit obligation is 11 years at December 31, 2022 and 14 years at 
December 31, 2021.
For the ASiMI benefit plans, a one percentage point increase (decrease) in discount rate is estimated to decrease (increase) the pension 
obligation by approximately USD 3.1/(3.7) million at December 31, 2022.

84
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
Non-financial liabilities, interest calculation
(USD IN MILLION)
2022
2021
Current portion of prepayments interest calculation
0.1
0.2
Total prepayments, interest calculation
0.1
0.2
 
Trade payables and other liabilities
(USD IN MILLION)
2022
2021
Trade and other payables
31.8
10.2
Accrued costs for capex
0.0
0.0
VAT and other public taxes and duties payables
2.9
2.9
Accrued operating costs
6.0
7.8
Accrued finance costs
2.8
2.8
Other non-interest bearing liabilities 1)
3.0
5.8
Trade payables and other liabilities
46.5
29.4
1)	 In 2021 Includes payment penalty of USD 4.7 million in relation to outstanding capital contribution from REC Silicon to the Yulin JV (see note 9 and 29). 
 
Provisions
(USD IN MILLION)
2022
2021
Provisions non-current - interest bearing
19.3
20.2
Total provision
19.3
20.2
 
Specification of provisions
(USD IN MILLION)
ASSET RETIREMENT 
OBLIGATION
TOTAL
At January 1, 2022
20.2
20.2
Change in estimate in asset retirement obligation
-1.8
-1.8
Net periodic asset retirement obligation costs including net interest
0.9
0.9
At December 31, 2022
19.3
19.3
 
Estimated fair values of the Group’s guarantees, indemnification loans and option contract related to the REC Wafer bankruptcy are not 
reported as provisions but included in other line items in the statement of financial position. 
NON-CURRENT PROVISIONS
During 2022 the Company recorded a decreased provision for asset retirement obligations (ARO) of USD 1.8 million. This was primarily due 
to a change in discount rates. Discount rates increased compared to the previous year due to higher market rates. The company determined 
it was appropriate to move to a more conservative rate for 2022. At December 31, 2022 the Company has recorded USD 19.3 million in 
AROs. These obligations consist of USD 2.8 million to restore leased wastewater containment ponds to conditions specified in the lease 
agreement and USD 16.5 million for the eventual cleanup of the Company’s manufacturing operations in Moses Lake, Washington and Butte, 
Montana.
Estimates are sensitive to changes in discount rates used to calculate provisions for AROs. At December 31, 2022, a one percent increase 
to the discount rates would decrease the provision by USD 1.6 million, while a one percent decrease to the discount rates would increase the 
provision by USD 2.3 million.
At December 31, 2022, the AROs represent the present value of estimated future costs discounted at 5.4 percent for 6 years for the 
wastewater containment ponds. The restoration of the production sites is discounted at 5.7 percent for 37.5 years. Total undiscounted 
amounts were USD 3.8 million for the ponds, and 133.5 million for the production sites.
20	
TRADE PAYABLES, PROVISIONS AND OTHER LIABILITIES

85
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
At December 31, 2021 the AROs were discounted at 3.5 percent for the ponds and 4.8 percent for the production sites. Total undiscounted 
amounts were USD 4.0 million for the ponds and USD 108.1 million for the production sites.
Climate related risk has been considered in the calculation of the ARO. There could be changes in environmental regulations impacting the 
company going forward, but no related legislation has been passed at the current time that is expected to impact the group.
The restoration of production sites is subject to significant uncertainty due to variability in restoration requirements imposed by regulatory 
authorities as well as the timing of restoration. 
There were no government grants receivables recognized at December 31 2022. Government grant income in 2021 of USD 8.3 million was the 
result of forgiveness of the C.A.R.E.S. Act loans held by REC Solar Grade Silicon LLC and REC Advanced Silicon Materials LLC (see note 17 and 23).
(USD IN MILLION)
2022
2021
Freight, postage and transportation
4.3
3.5
Energy and water
55.0
34.9
Lease and rental expenses
0.6
0.8
Total operating, service and maintenance costs
29.1
22.7
Consultancy and auditor fees
9.4
7.4
Own work capitalized on fixed assets
-0.3
-0.3
IT and telecommunications costs
2.5
1.8
Travel and entertainment costs
0.6
0.2
Insurance costs
4.6
4.1
Other operating costs 1)
1.3
0.6
Other operating expenses
107.1
75.6
1)	 Other Operating Costs include the reimbursement of expenses incurred on behalf of the JV (see note 10).
Auditor’s remuneration
(USD IN MILLION)
2022
2021
Statutory Audit (only relating to statutory auditor)
0.5
0.5
Other assurance services (only relating to statutory auditor)
0.1
0.0
Tax advisory services (only relating to statutory auditor)
0.0
0.0
Other non-audit services (only relating to statutory auditor)
0.0
0.0
Total auditors remuneration
0.6
0.6
21	
GOVERNMENT GRANTS
22	
OTHER OPERATING EXPENSES

86
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
(USD IN MILLION)
2022
2021
Restructuring cost and employee termination benefits
-0.5
-0.4
C.A.R.E.S. Act Loan Forgiveness
0.0
8.3
Total other income and expenses
-0.5
7.9
 
In 2022 Other income and expense relates to employee termination benefits (see note 16).
(USD IN MILLION)
2022
2021
Salaries
32.0
28.7
Bonus and sales commission - employees
0.8
2.7
Share option expense
0.4
0.4
Social security tax
2.2
2.1
Defined Contribution
2.4
1.7
Other employee related costs
6.2
6.0
Employee benefit expenses
44.1
41.7
 
The average number of permanent employees during 2022 was 311. The average number of permanent employees during 2021 was 289.
There were loans provided to employees in the amount of USD 0.1 million at December 31, 2022 (see note 16) and zero at December 31, 
2021. There were no guarantees provided to employees at December 31, 2022 or 2021.
23	
OTHER INCOME AND EXPENSES
24	
EMPLOYEE BENEFITS

87
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
(USD IN MILLION)
2022
2021
Interest income from financial assets not at fair value through profit or loss
1.9
0.1
Total income from financial assets not at fair value through profit or loss
1.9
0.1
Interest expenses for USD Senior Secured Bond
-12.7
-12.7
Interest expenses for Property Tax dispute
-0.8
-0.9
Interest expenses for C.A.R.E.S. Act loan
0.0
0.0
Expensing of up-front fees and costs
-0.5
-0.4
Interest on leaase liabilities
-8.6
-8.8
Calculated/imputed interest other - added to principal - external
-0.9
-0.8
Capitalization of borrowing costs
3.0
0.4
Other expenses from financial assets and liabilities
-0.4
-0.5
Net financial expenses
-20.9
-23.6
Net currency gains/losses
-9.7
0.8
Net financial items
-28.7
-22.7
 
Interest income in 2022 includes interest on cash deposits of USD 1.8 million
Calculated interest is interest calculated on prepayments (see note 20).
Currency losses in 2022 were primarily the result of impacts of a stronger USD compared to NOK on cash balances the company has in NOK.
ADDITIONAL INFORMATION TO THE STATEMENT OF CASH FLOWS ON INTEREST, UP-FRONT FEES, AND OTHER COSTS PAID
Interest paid is approximately USD 22.0 million in 2022 and USD 22.3 million in 2021.
BASIC
Basic earnings per share (EPS) is calculated by dividing the profit/loss attributable to equity holders of the Company by the weighted average 
number of ordinary shares issued during the year, excluding treasury shares.
EARNINGS PER SHARE
2022
2021
Profit/loss from continuing operations (USD IN MILLION)
-87.0
-43.5
Profit/loss from total operations (USD IN MILLION)
-86.8
-30.1
Weighted average number of ordinary shares in issue (IN MILLION)
418.1
372.4
Basic earnings per share from continuing operations (USD per share)
-0.21
-0.12
Basic earnings per share from total operations (USD per share)
-0.21
-0.08
 
DILUTED
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding. If the effect increases 
EPS from continuing operations, it is anti-dilutive, and is then not included in diluted EPS. 
Dilutive EPS equals basic EPS for both years.
25	
FINANCIAL INCOME AND EXPENSES
26	
EARNINGS PER SHARE

88
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
The Board of Directors did not propose any dividend payments for financial years 2022 or 2021. 
(USD IN MILLIONS)
2022
2021
Research and development expense
1.9
1.7
Development capitalized
0.0
-0.1
Total research and development
1.9
1.6
Research and development activities consist of improvements to current production processes and equipment as well as activities 
designed to enhance quality, improve efficiency, and reduce production cost. Research and development expenses in the table above include 
depreciation of USD 0.4 million in 2022 and 2021.
27	
DIVIDENDS PER SHARE
28	
RESEARCH AND DEVELOPMENT

89
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Purchase obligations consist of significant items for which the Group is contractually obligated to purchase from third parties at December 31, 
2022. Operating lease payments show contractual minimum future payments.
In cases where contracts can be terminated or reduced, the reduced amount has been included as estimated payments in the first period 
subsequent to the reporting period. Consequently, the amounts presented in the table represent the estimated unavoidable portion of the 
Group’s expected future costs related to purchase obligations and lease payments. It does not reflect the Group’s expected future cash 
outflows. 
Purchase obligations and operating lease payments are undiscounted and exclude the payment of amounts recognized for other assets, 
liabilities, and investments. 
Contractual purchase obligations and minimum operating lease payments at December 31, 2022
(USD IN MILLION)
TOTAL 
FUTURE 
PAYMENTS
2023
2024
2025
2026
2027
AFTER 2027
Total purchase of goods, services
26.7
26.6
0.0
0.0
0.0
0.0
0.0
Total purchase of CAPEX
63.0
61.7
1.3
0.0
0.0
0.0
0.0
Total minimum operating lease payments
0.1
0.1
0.0
0.0
0.0
0.0
0.0
Total purchase obligations and minimum operating lease payments
89.8
88.4
1.3
0.0
0.0
0.0
0.0
Purchase obligations consist primarily of long-term contracts for 
the restart of granular production in Moses Lake as well as 
Metallurgical Grade Silicon. Operating leases are short-term or  
low-value leases that meet the exceptions in IFRS 16 Leases.
GUARANTEES AND PLEDGES
Bank guarantees at December 31, 2022 amounted to USD 1.1 
million with USD 0.2 million of restricted cash as security.
Bank guarantees at December 31, 2021 amounted to USD 5.1 
million, against which the Company has pledged USD 3.8 million of 
restricted cash. This includes bank guarantees for the benefit of 
REC Solar AS of USD 1.1 million with USD 0.2 million of restricted 
cash as security. USD 3.6 million of restricted cash will be used as 
part of the Nordea settlement (see note 14). 
The Group provided parent company guarantees for the REC Solar 
Group related to the performance of solar panels and systems and 
the sale of REC ScanModule AB. The Group has been provided with 
offsetting guarantees by REC Solar Holdings AS. The guarantees 
are valid for relevant warranty periods and are limited by warranties 
provided on solar panels and systems. Parent company guarantees 
for REC Solar were USD 54.9 million at December 31, 2022 and 
USD 54.7 million at December 31, 2021. The guarantees will 
decrease from 2023 to 2039 when they will expire in their entirety.
29	
COMMITMENTS, GUARANTEES, PLEDGES

90
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
FAIR VALUES OF FINANCIAL INSTRUMENTS
The estimated fair values of the Group’s financial instruments are 
based on market prices and the valuation methods described below. 
Determining the categorization of fair value measurements in 
accordance with IFRS 13 involves judgment.
Level 3
Option contract is part of the indemnification agreements in 
connection with the REC Wafer Norway AS bankruptcy, and the 
estimated fair value is subject to change. Changes in estimated fair 
value, when they occur, are reported as part of the net gain on 
disposal of discontinued operations. In October of 2021, REC 
Silicon and Nordea entered into an agreement to settle claims 
associated with the indemnification loans. Under the agreement, 
Nordea released all claims against REC Silicon for NOK 95 million 
(USD 10.7 million). The settlement consisted of approximately NOK 
32 million (USD 3.6 million) settled through a restricted cash 
escrow account, and a payment of approximately NOK 63 million 
(USD 7.1 million) in February 2022. At December 31, 2022, the 
indemnification loan was zero. At December 31, 2021, the 
indemnification loan was NOK 95 million (USD 10.8 million) and the 
liability for the option contract related to the indemnification loan 
was USD 0.0 million.
Other financial liabilities and assets
The USD Senior Secured bonds (REC04) are traded on the Oslo 
Stock Exchange. Although trading is limited, market values of the 
bonds were estimated using trades near year-end (level 2 in the fair 
value hierarchy).
 
2022
2021
(USD IN MILLION)
NOMINAL VALUE
CARRYING VALUE
ESTIMATED 
FAIR VALUE
NOMINAL VALUE
CARRYING VALUE
ESTIMATED 
FAIR VALUE
REC04
110.0
109.9
110.6
110.0
109.4
114.3
 
For all remaining financial assets and liabilities, the carry amounts represent a reasonable approximation of fair value.
 
CREDIT RISK
The maximum credit risks related to financial assets are estimated in the table below.
2022
2021
(USD IN MILION)
CARRYING AMOUNT
MAX. EXPOSURE
CARRYING AMOUNT
MAX. EXPOSURE
Cash and bank (incl. restricted bank accounts)
106.0
106.0
114.9
114.9
Trade receivables and accrued revenues
16.8
16.8
22.8
22.8
Other non-current and current receivables
0.1
0.1
0.2
0.2
Finance receivables and short-term loans
0.0
0.0
1.1
1.1
Total
123.0
123.0
139.1
139.1
The bank guarantees, parent company guarantees, expose the Group to credit risk. The fair values of bank and parent company guarantees are 
estimated at zero at December 31, 2022. 
30	
OTHER INFORMATION FINANCIAL INSTRUMENTS

91
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
Shared characteristics that identify each concentration of trade receivables at December 31 
GEOGRAPHICAL
2022
2021
SECTOR
2022
2021
INDUSTRY
2022
2021
China
54%
53%
Manufacturing
61%
68%
Electronic
68%
58%
North America
14%
15%
Wholesale
39%
25%
Solar
32%
36%
Taiwan
10%
12%
Other
0%
6%
Other
0%
6%
Europe
9%
9%
Korea
9%
3%
Singapore
2%
7%
Japan
1%
1%
Other Asia
1%
1%
Total
100%
100%
100%
100%
100%
100%
 
The table above is calculated with respect to gross trade receivables. The provision for loss on trade receivables is exclusively concentrated 
on customers in the solar industry in China and Taiwan.
The Group is dependent on a small number of customers. In 2022, four customers represented approximately 57 percent of revenue for the 
Group. In 2021 four customers represented 63 percent Since nearly all revenue is from the semiconductor segment, approximately 57 
percent of the revenue in 2022 for the Semiconductor segment consisted of four customers in 2022 and 63 percent in 2021. The Solar 
Materials segment was represented by one customer in 2022 and two in 2021. 
Three customers represented approximately 60 percent of total trade receivables for The Group at December 31, 2022 (four customers 
represented approximately 50 percent at December 31, 2021). 
Approximately 60 percent of the trade receivables for the Semiconductor segment consisted of three customers in both 2022 and 2021, 
while approximately 100 percent of the trade receivables for the Solar Materials segment was represented by three customers in 2022 and 
four in 2021. See note 5 Segment Information above.
Amounts overdue but not impaired between 90 and 365 days were zero in 2022. Amounts overdue between 90 and 365 days but not 
impaired consisted of one customer for 2021. (see table below)
Analysis of aging of receivables at December 31, 2022
AGING OF RECEIVABLES 
PAST DUE
(USD IN MILLION)
TOTAL CARRYING 
AMOUNT
NOT DUE
< 30 DAYS
>30<90 DAYS
>90<365 DAYS
>365 DAYS
Trade receivables
26.4
4.2
0.6
0.0
9.6
14.4
Provision for loss on trade recivables
-9.6
0.0
0.0
0.0
-9.6
-14.4
Other non-current and current receivables
0.1
0.0
0.0
0.0
0.0
0.0
Total receivables
16.9
4.2
0.6
0.0
0.0
0.0
Prepaid Costs
6.3
Total trade and other receivables
23.2
Analysis of aging of receivables at December 31, 2021
AGING OF RECEIVABLES 
PAST DUE
(USD IN MILLION)
TOTAL CARRYING 
AMOUNT
NOT DUE
< 30 DAYS
>30<90 DAYS
>90<365 DAYS
>365 DAYS
Trade receivables
37.2
3.3
0.6
1.3
14.4
14.4
Provision for loss on trade recivables
-14.4
0.0
0.0
0.0
-14.4
-14.4
Other non-current and current receivables
1.3
0.0
0.0
0.0
0.0
0.0
Total receivables
24.2
3.3
0.6
1.3
0.0
0.0
Prepaid Costs
5.4
Total trade and other receivables
29.6

92
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
The provision for doubtful accounts includes the impact of adopting 
IFRS 9 which requires the Company to estimate expected credit 
losses (ECL) based upon historical experience. The Company has 
prepared analyses to calculate an ECL estimated at 0.22 percent of 
sales. However, because expected credit losses are low and 
accounts receivable consists of relatively large outstanding 
balances, use of the ECL to record credit losses at the time of sale 
would result in provisions for losses on trade receivables that are 
collected. Therefore, the Company uses the ECL rate as a guideline 
and evaluates the potential that balances will not be received based 
upon days outstanding, customer payment histories, and other 
information regarding past due balances. In general, provisions are 
recorded for accounts which are greater than 60 days past due 
unless there is a clear indication that payment will be received.
At December 31, 2022, approximately 33 percent of the not due 
receivables were secured by bank guarantees with no past due 
receivables secured by credit insurance. At December 31, 2021, 
approximately 45 percent of not due trade receivables were 
secured by bank guarantees.
SENSITIVITIES
Interest rate sensitivity
A change in interest rates will affect interest payments on variable 
interest rate liabilities, cash, and restricted cash. The net effect of a 
one percentage point increase (decrease) in interest rates is 
estimated to affect profit or loss for the year by USD 1.0 (-1.0) 
million calculated on outstanding amounts at December 31, 2022 
and 2021. 
Exchange rate sensitivity
The table below shows the estimated impact of a 10 percent 
increase in foreign currency rates compared to functional 
currencies for each entity. A decrease in the same percentage would 
create the opposite effect. The amounts calculated in the table 
below are for REC Silicon ASA at period end and do not reflect 
fluctuations during the year. The table below shows the effects of 
changes in exchange rates on positions denominated in NOK for 
2022 and 2021.
 
Exchange rate sensitivity on financial instruments at December 31 
CHANGE + 10% COMPARED TO FUNCTIONAL CURRENCIES
(USD IN MILLION)
2022
2021
Financial assets 
5.7
1.3
Financial liabilities 
0.0
-1.2
Total 
5.7
0.1
Of which to equity
USD receivables as part of net investment 
0.0
0.0
Rest is to profit or loss 
5.7
0.1

93
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
The Group is involved in legal disputes in the ordinary course of 
business. Provisions are recognized for the expected outcomes in 
accordance with applicable accounting rules. Provisions are based 
on Group Management’s estimate of likely outcomes based on prior 
experience, the source, and the facts and circumstances of a claim. 
The final outcomes of such disputes and litigation are subject to 
significant uncertainty and actual outcomes may vary from 
provisions recognized. Provisions are adjusted to reflect the most 
recent facts and circumstances.
RESTART OF PRODUCTION FACILITY IN MOSES LAKE
The Company is executing a plan to realize FBR production in Q4 of 
2023. Current activities include execution of engineering, 
procurement, and construction for FBR upgrades. The company is 
targeting a ramp to 50 percent operation during Q2 2024 and a 
ramp to 100 percent operation during Q4 2024. 
Successful execution of the Company’s plan to restart production at 
the Moses Lake facility would likely require reversal of impairment.
Additional impairments and provisions would be required if the 
Moses Lake facility is not restarted.
GLOBAL UNCERTAINTY
The Russian invasion of Ukraine has increased risks to global 
markets. The war has had significant impacts to energy costs. These 
increased energy costs have had a negative effect on REC Silicon’s 
profitability as the semiconductor materials segment is dependent 
on electricity and natural gas as direct material inputs. REC Silicon 
has limited direct exposure in the region and is complying with all 
imposed sanctions. It is likely that pricing volatility will continue in the 
energy markets.
Volatility in the foreign currency market has had a negative impact on 
REC’s cash position. REC Silicon holds a portion of its cash in NOK. 
The weakening of NOK compared to the USD has resulted in currency 
loss in 2022. REC Silicon will convert NOK to USD as needed.
Furthermore, rising interest rates, continued logistical challenges, 
and high inflation add to uncertainty. High inflation, specifically 
related to raw materials and energy negatively impact the company.
IMPACT OF COVID-19 GLOBAL PANDEMIC
Company management and the Board of Directors continue to 
monitor the situation and will take appropriate action as additional 
developments occur.
The share-based incentive program is intended to award and 
incentivize outstanding performance by eligible employees and to 
attract and retain strong talent in business-critical functions.
The synthetic options under this Program entitle the holder to 
receive a cash payment equivalent to the difference between a 
specific number of options multiplied by the strike price for such 
options and the same number of REC shares multiplied by the 
weighted average market price of REC shares on the disbursement 
dates. The options entitlement does not need to be exercised by any 
action by the eligible employee and will be automatically disbursed 
by REC following the applicable disbursement date for such year. 
The cash payment is limited to a maximum amount in each calendar 
year. The maximum amount is each employee’s base salary effective 
January 1 in the year of the relevant disbursement date.
The value of unvested options is calculated using the Black Scholes 
option pricing model and may not match actual payments made 
depending upon the market value of the Company’s stock on the 
exercise date. During 2022 zero share options were granted. In 
2017, 2018, 2019, 2020 and 2021, 1,200,000 share options were 
granted to certain key employees. The first three years are a lock-up 
period. The vesting of the options for eligible employees will take 
place in equal parts after the third, fourth and fifth years of each 
program, on each June 30 of each year. The options were granted at 
a strike price of NOK 11.9 for 2017, NOK 15.2 for 2018, 8.1 in 
2019, 3.5 in 2020, and 17.5 in 2021. Any unexercised options are 
forfeited upon termination of employment, unless the employee 
retires, in which case options are maintained.
31	
CLAIMS, DISPUTES, CONTINGENT LIABILITIES AND CONTINGENT ASSETS AND RISKS
32	
SHARE-BASED COMPENSATION

94
Notes to the consolidated financial  
statements, REC Silicon Group
REC Silicon Annual Report 2022
OPTIONS OUTSTANDING AT DECEMBER 31, 2022
PROGRAM
EXERCISE 
PRICE (NOK)
NO. OPTIONS
TOTAL FAIR VALUE 
(USD MILLION)
REMAINING 
CONTRACTUAL 
LIFE (YEAR)
TOTAL EXPENSED 
(USD MILLION)
2018
15.2
342,371
0.1
0.5
0.1
2019
8.1
676,113
0.8
1.5
0.6
2020
3.5
1,015,787
1.5
2.5
1.0
2021
17.5
1,118,923
0.9
3.5
0.4
Total
3,153,194
3.4
2.1
 
OPTIONS OUTSTANDING AT DECEMBER 31, 2021
PROGRAM
EXERCISE 
PRICE (NOK)
NO. OPTIONS
TOTAL FAIR VALUE 
(USD MILLION)
REMAINING 
CONTRACTUAL 
LIFE (YEAR)
TOTAL EXPENSED 
(USD MILLION)
2017
11.9
310,726
0.2
0.5
0.2
2018
15.2
731,416
0.5
1.5
0.4
2019
8.1
1,089,423
1.3
2.5
0.9
2020
3.5
1,089,704
1.5
3.5
0.7
2021
17.5
1,200,000
1.0
4.5
0.2
Total
4,421,269
4.5
2.2
Differences between the number of options granted for each year 
and the number of outstanding options in the table above are due to 
options that have been forfeited upon termination of employment, 
and also by options exercised. Options forfeited for 2022 and 2021 
were 228,500 and 370,275 respectively. During 2022 the total 
amount of shares exercised were 310,726 from program year 
2017, 365,708 from program year 2018, and 363,141 from 
program year 2019.
The amount recognized in the statement of income for share-based 
compensation was USD 0.4 million in 2022 and USD 0.4 million in 
2021. At December 31, 2022, USD 1.3 million has been reported in 
the line other non-current liabilities on the statement of financial 
position and USD 0.9 million in accrued operating costs (see note 
20). The liabilities associated with share-based compensation are 
derived using the Black Scholes option pricing model and may not 
match actual payments made depending upon the market value of 
the Company’s stock on the exercise date. During 2021 there was 
USD 0.5 million in cash payments made with respect to share-based 
compensation, and USD 0.7 million in 2021.

95
Notes to the consolidated financial  
 statements, REC Silicon Group
REC Silicon Annual Report 2022
On January 31, 2023 REC Silicon ASA (“REC Silicon” or the 
“Company”) announced the entering into of a binding term sheet 
between its subsidiary REC Solar Grade Silicon LLC and Hanwha 
Solutions for a 10 year take-or pay offtake for FBR polysilicon 
produced at REC Silicon’s facility at Moses Lake, Washington (the 
“Offtake”). The Offtake provides for the sale to Hanwha Solutions of 
100% of the prime FBR production from the facility.
The base price for the Offtake will be determined by market indices 
adjusted for a premium for US-sourced low carbon material. The base 
price is also subject to both a minimum and maximum that protects 
REC Silicon against potential future low market prices that could 
otherwise threaten the long-term prospects for the Company. To 
secure the offtake obligations and to provide security in support of 
the restart of the Moses Lake facility, Hanwha Solutions will, upon 
entering into the full form agreement, make a significant prepayment 
(the “Prepayment”). The parties expect that a full form agreement 
including all operational details will be entered into in the coming 
months and will be announced when finalized.
On March 21, 2023 the Company announced a corporate debt 
financing of USD 110 million from KEB Hana Bank in Korea for the 
purpose of retiring the senior secured bond that matures on April 13, 
2023. The contemplated debt financing will be fully guaranteed by 
REC Silicon’s largest shareholder Hanwha Solutions, which will result 
in favorable terms compared to other financing alternatives.  In 
addition to this USD 110 million debt financing, the ongoing restart 
activities of the company’s polysilicon factory in Moses Lake and 
capacity investments in Butte, will require additional financing. REC 
Silicon is in the process of exploring all funding options, including 
debt financing and pre-payments from offtake contracts, and the 
company is confident that funds will be raised well in advance of such 
capital needs. REC Silicon will update the market as financing plans 
are concluded.
33	
EVENTS AFTER THE REPORTING PERIOD

REC Silicon Annual Report 2022
96
BALANCE SHEET (NGAAP)
REC SILICON ASA
AT DECEMBER 31 (USD IN THOUSAND)
NOTES
2022
2021
ASSETS
Non-current assets
Equipment and intangible assets
B
30
30
Investments in subsidiaries
C
133
133
Non-current receivables from subsidiaries
D
210,000
193,700
Restricted bank accounts non-current
E
0
3,630
Total non-current assets
210,163
197,493
 Current assets 
 Other receivables from subsidiaries 
D
0
0
 Other receivables 
362
277
Restricted bank accounts current
E
214
225
Total current receivables
576
502
Cash and cash equivalents
E
90,841
93,550
Total current assets
91,417
94,052
Total assets
301,580
291,545

REC Silicon Annual Report 2022 97
BALANCE SHEET (NGAAP)
REC SILICON ASA
AT DECEMBER 31 (USD IN THOUSAND)
NOTES
2022
2021
EQUITY AND LIABILITIES
Shareholders' equity
Share capital
G
49,629
44,125
Share premium
G
199,677
95,670
Total paid-in capital
G
249,306
139,795
Other equity and retained earnings
G
-60,870
28,559
Total shareholders' equity
G
188,436
168,354
Non-current liabilities
Interest-bearing liablities
F
0
109,389
Total non-current liabilities
0
109,389
Current liabilities
Trade payables
212
146
Social security tax, VAT and other taxes
30
23
Interest-bearing liabilities
F
109,857
10,772
Other current liabilities
L
3,045
2,862
Total current liabilites
113,144
13,802
Total liabilities
113,144
123,191
Total equity and liabilities
301,580
291,545
Lysaker, March 23, 2023
Board of Directors
This document is signed electronically.
Tae Won Jun
Chairman of the Board
Dong Kwan Kim
Deputy Chair
Vivian Bertseka
Member of the Board
Roberta Benedetti
Member of the Board
Dr. Renate Oberhoffer-Fritz
Member of the Board
William K. Levens
President and CEO

REC Silicon Annual Report 2022
98
INCOME STATEMENT (NGAAP)
REC SILICON ASA
YEAR ENDED DECEMBER 31 (USD IN THOUSAND)
NOTES
2022
2021
Revenues
0
0
Employee benefit expenses
H
-159
-307
Other operating expenses
J
-2,253
-1,973
EBIT
-2,412
-2,279
Interest income, internal
K
0
0
Interest income, external
1,813
22
Other financial income
K
0
13,407
Interest expense, external
K
-13,119
-13,066
Other financial expenses
K
-9
-27
Net currency gains/losses
K
-7,140
822
Impairment of financial assets
M
-68,709
-30,908
Net financial items
-87,164
-29,750
Profit/loss before income tax
-89,576
-32,030
Income tax expenses from continuing operations
I
0
0
Profit / loss from continuing operations
-89,576
-32,030
Profit / loss from discontinued operations, net of tax
147
0
Profit/ loss for the total operations
-89,429
-32,030
Profit/loss for the year is distributed as follows
Other equity (uncovered loss)
G
-89,429
-32,030
Total distributed
-89,429
-32,030

REC Silicon Annual Report 2022 99
STATEMENT OF CASH FLOWS (NGAAP)
REC SILICON ASA
YEAR ENDED DECEMBER 31 (USD IN THOUSAND)
2022
2021
Cash flows from operating activities
Loss before tax
-89,576
-32,030
Impairment losses financial assets 1)
68,709
30,908
Changes in receivables external
-85
-112
Changes in payables
73
216
Reversal of derivatives and indemnification loan
147
-13,407
Currency effects not cash flow or not related to operating activities 2)
-7,232
-741
Other items 3)
7,839
416
Net cash flow from operating activities
-20,125
-14,750
Cash flow from investing activities
Proceeds from finance receivables and restricted cash
0
106
Payments of receivables internal 1)
-85,009
0
Net cash flow from investing activities
-85,009
106
Cash flow from financing activities
Increase in equity
109,511
0
Net payment of indemnity loan 4)
-7,086
0
Net cash flow from financing activities
102,425
0
Net increase/decrease in cash and cash equivalents
-2,709
-14,644
Cash and cash equivalents at the beginning of the period
93,550
108,194
Cash and cash equivalents at the end of the period
90,841
93,550
1)	 Impairment losses financial assets. See note M.
2)	 The Currency gains and losses are primarily related to liabilities in NOK. 
3)	 Other items consist of the expensing of up-front loan fees and amortization of interests and other items.
4)	 Net payment of indemnity loan is the cash amount paid to Nordea of NOK 63,020. In addition to this amount, the portion of restricted cash of NOK 31,980 was released to 
Nordea, equaling the total settlement amount of NOK 95,000.

REC Silicon Annual Report 2022
100
INDEX OF THE NOTES TO THE FINANCIAL STATEMENTS
REC SILICON ASA
NOTE
PAGE
A	
Summary of significant accounting principles and general
101
B	
Equipment and intangible assets
102
C	
Shares in subsidiaries
102
D	
Receivables from subsidiaries
103
E	
Cash and cash equivalents and restricted bank accounts
103
F	
Interest bearing liabilities
104
G	
Equity
104
H	
Employee benefits
105
I	
Income taxes
106
J	
Other operating expenses
108
K	
Interest and currency
109
L	
Derivatives, other current liabilities
110
M	 Impairment of financial assets
110
N	
Research and development
111
O	
Guarantees and indemnification agreements
112
P	
Related parties
112
Q	
Contingent liabilities
112
R	
Events after the reporting period
113

101
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS
REC SILICON ASA
REC Silicon ASA (the Company) is a holding company with corporate 
management and financial functions. 
The financial statements have been prepared in compliance with 
the Norwegian Accounting Act and Norwegian generally accepted 
accounting principles (NGAAP) in effect at December 31, 2022 The 
Company’s reporting and functional currency is in US Dollar (USD). 
The reporting currency used in the consolidated financial 
statements is US Dollar (USD). The consolidated financial 
statements of the Group have been prepared in accordance with 
IFRS. The Company’s accounting principles are similar to the 
accounting principles for the Group unless otherwise noted. 
Financial statement disclosures for the Company that are 
substantially different from the disclosures for the Group are 
shown below. See notes to the consolidated financial statements.
Group contributions and dividends that are subject to approval by 
the Annual General Meeting are recognized according to IFRS in the 
consolidated financial statements at the time of approval. For the 
Company’s financial statements according to NGAAP, these are 
recognized in the fiscal year they relate to. Group contributions to 
subsidiaries are recognized as investment in shares in subsidiaries, 
net of tax. 
Subsidiaries, jointly controlled entities, and associates are carried 
at the lower of cost or estimated recoverable amount in the 
Company’s financial statements. In the consolidated financial 
statements, these are consolidated or accounted for using the 
equity method.
In the Company’s financial statements, payments expected to be 
made during the next 12 months on non-current financial assets or 
liabilities are reclassified to current financial assets or liabilities.
The financial statements are presented in USD, rounded to the 
nearest thousand unless otherwise stated. As a result of rounding 
adjustments, the figures in one or more rows or columns included in 
the financial statements may not add up to the total of that row or 
column.
The financial statements of the Company have been approved for 
issue by the Board of Directors on March 23, 2023 and are subject 
to approval by the Annual General Meeting scheduled for May 11, 
2023.
A	
SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND GENERAL

102
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Equipment and intangible assets consist of office equipment and furniture.
There has been no addition and disposal during 2022 and 2021. The tangible assets were fully depreciated at December 31, 2020.
CARRYING AMOUNT 
DECEMBER 31 
(USD IN THOUSAND)
COMPANY
OWNERSHIP/ VOTING RIGHT
BUSINESS OFFICE
2022
2021
REC SILICON AS
100%
Bærum
 11 
 11 
REC SOLAR AS
100%
Bærum
 122 
 122 
Total
 133 
 133 
 
In 2020 the Company impaired the shares in REC Silicon AS with USD 12,927 thousand as a consequence of REC Silicon AS similar 
impairment of their shares in REC Silicon Pte Ltd. See note M.
SUB-SUBSIDARIES
OWNERSHIP/VOITING RIGHT
BUSINESS OFFICE
REC Solar AS subsidiaries
Gitzeli Solar Energy Production S.A.
100%
Greece
REC Greece S.A.
100%
Greece
REC Silicon AS subsidiaries
REC Silicon Inc
100%
Moses Lake, USA
REC Solar Grade Silicon LLC
100%
Moses Lake, USA
REC Advanced Silicon Materials LLC
100%
Butte, USA
REC Silicon Pte. Ltd.
100%
Singapore
 
At December 31, 2022, REC Solar AS’s subsidiaries were under liquidation.
B	
EQUIPMENT AND INTANGIBLE ASSETS
C	
SHARES IN SUBSIDIARIES

103
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Non-current interest-bearing receivables from subsidiaries are USD loans to the subsidiaries with carrying value USD 193,700 thousand at 
December 31, 2022 and 2021. In 2021 the Company impaired these receivables by USD 25,700 thousand. 
In 2022 the Company impaired these receivables by USD 68,709 thousand. These loans are not interest-bearing and is deemed as part of the 
long term financing of the US operation. See note M.
Other current receivables consist of receivable/ loan to REC Silicon Pte. Ltd. The Company has impaired the receivables/ loan to REC Silicon 
Pte. Ltd due to the subsidiary’s financial situation and obligations. See note M.
The Company has impaired the receivables/ loan to Rec Silicon Pte Ltd due to the subsidiary’s financial situation and obligations.
Cash and cash equivalents consist of bank deposits. 
Restricted bank accounts (not included as cash and cash equivalents)
AT DECEMBER 31 (USD IN THOUSAND)
2022
2021
Non-current
0
3,630
Current
214
225
Total restricted bank accounts
214
3,855
 
The non-current restricted bank account of USD 3 630 is an escrow account which the Company holds with Nordea and has been used as a 
part of the settlement of the indemnification loan by the end of February 2022. 
At December 31, 2022 current restricted bank accounts include USD 13 thousand to secure employees’ tax deductions (board members)  
in REC Silicon ASA.
At December 31, 2021 current restricted bank accounts include USD 41 thousand to secure employees’ tax deductions in REC Silicon ASA.
See note 14 to the consolidated financial statements for a description of restricted bank accounts.
D	
RECEIVABLES FROM SUBSIDIARIES
E	
CASH AND CASH EQUIVALENTS AND RESTRICTED BANK ACCOUNTS

104
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
AT DECEMBER 31 (USD IN THOUSAND)
2022
2021
Non-current
USD senior secured bond
0
110,000
Unamortized fees 
0
-611
USD senior secured bond
0
109,389
Total non-current interest bearing liabilities
0
109,389
Current
USD senior secured bond
110,000
0
Unamortized fees 
-143
0
USD senior secured bond
109,857
0
Indemnification loan
0
10,772
Total non-current interest bearing liabilities
109,857
10,772
Total interest bearing liabilities
109,857
120,160
 
On October 18, 2021 the Company and Nordea entered into an agreement to settle claims associated with the indemnification loans. Under 
the agreement Nordea releases all claims against the Company for NOK 95 million (USD 10.8 million). Consequently, NOK 105 million of 
total NOK 200 million of the indemnification loans have been taken to profit and loss. The settlement consists of approximately NOK 32 
million (USD 3.6 million) settled through an existing escrow account which the Company held with Nordea with the balance settled in one 
payment of approximately NOK 63 million (USD 7.2 million) by the end of February 2022.
See note 17 to the consolidated financial statements for details of the Company’s interest-bearing liabilities.
(USD IN THOUSAND)
SHARE CAPITAL
SHARE PREMIUM
OTHER EQUITY AND 
RETAINED EARNINGS 
(UNCOVERED LOSSES)
TOTAL
Equity at January 1, 2021
44,125
95,670
60,589
200,384
Loss for the year
0
0
-32,030
-32,030
Equity at December 31, 2021
44,125
95,670
28,559
168,354
Share issue
5,504
104,007
0
109,511
Loss for the year
0
0
-89,429
-89,429
Equity at December 31, 2022
49,629
199,677
-60,870
188,436
At December 31, 2022, REC Silicon ASA had 37,280 shareholders (39,420 at December 31, 2021). The total number of outstanding shares 
was 420,625,659 at December 31, 2022 and 372,412,658 at December 31, 2021, each with a par value of NOK 1.
CAPITAL INCREASE/PRIVATE PLACEMENT
On January 19, 2022 the Company successfully completed a private placement of Equity with a gross proceeds of NOK 964 million with 
issuing 48,213,001 new shares at NOK 20.
F	
INTEREST BEARING LIABILITIES
G	
EQUITY

105
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Employee benefit expenses
(USD IN THOUSAND)
2022
2021
Payroll
-152
-232
Social security tax
-7
-16
Pension expense including social security tax
0
0
Other employee related costs
0
-59
Employee benefit expenses
-159
-307
 
The average number of employees measured in man-years was 0.0 during 2022 and for 2021. There were no loans or guarantees to 
employees at December 31, 2022 and 2021.
Payroll includes compensation to Board of Directors. For compensation and shareholdings for Group management and Board of Directors 
see note 16 to the consolidated financial statements. 
PENSION PLANS
At December 31, 2022 and 2021 the Company had no employees and had thereby stopped to maintain a defined contribution pension plan 
for employees. As long as the company had employees, the company maintained a contribution plan that fulfilled the requirements of 
Norwegian law: “Lov om obligatorisk tjenestepensjon”. 
H	
EMPLOYEE BENEFITS

106
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Recognized income tax expense
(USD IN THOUSAND)
2022
2021
Current income tax benefit (+) / expense (-) for the year
0
0
Total deferred tax benefit (+) / expense (-) for the year
0
0
Changes in estimates related to prior years1)
0
0
Total income tax benefit (+) / expense (-) for the year in the income statement
0
0
1)	 See note Q Contingent Liabilities in relation to the reversal of the estimated tax expense of USD 22,525 thousands in 2020.
 
Relationships between income tax expense/benefit to profit/loss before taxes
(USD IN THOUSAND)
2022
2021
Profit/Loss for before taxes
-89,429
-32,030
Tax calculated at domestic tax rate of 22 %
19,674
7,047
Expenses not deductible for tax (-) /reversal (+)(permanent differences) 1)
0
0
Impairment loss (permanent differences) 1)
-15,116
-6,800
Other permanent differnces 2)
16,444
4,266
Effects of not recognized deferred tax assets, including reversal of previous years
-21,002
-4,513
Current income tax benefit (+) / expense (-) for the year
0
0
Changes in estimates related to prior years
0
0
Total income tax benefit (+) / expense (-) for the year in the income statement
0
0
Effective tax rate
0%
0%
1)	 Impairment of financial assets.
2)	 Other permanent differences consist of income and cost registered in USD financial statement, but not applicable for tax calculation, and income and cost registered 
in NOK Tax financial statement, but not applicable for the USD financial statement.
 
Current income tax
(USD IN THOUSAND)
2022
2021
Profit/Loss for before taxes
-89,429
-32,030
Impairment and losses on shares and loans - permanent differences
68,709
30,908
Expenses not deductible for tax (+) / reversal (-) (permanent differences)
0
0
Other permanent differnces 1)
-64,273
-19,171
Changes in temporary differences
95,332
31,682
Basis for income tax before utilization (-) / increase (+) of tax losses carried forward
-10,339
-11,389
Utilization (-) / increase (+) of tax losses carried forward
10,339
11,389
Basis for current tax in the income statement
0
0
Estimated 22 percent current income tax
0
0
Current income tax benefit (+) expense (-) for the year
0
0
Basis for current tax in the income statement
0
0
Cost for capital increase
0
0
Tax loss caried forward
0
0
Basis for current tax in balance sheet
0
0
Current tax asset (+) / liability (-)
0
0
1)	 Other permanent differences consist of income and cost registered in USD financial statement, but not applicable for tax calculation, and income and cost registered 
in NOK Tax financial statement, but not applicable for the USD financial statement.
 
I	
INCOME TAXES

107
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Specification of temporary differences and tax losses, deferred tax assets and liabilities
(USD IN THOUSAND)
2022
2021
Fixed assets
-25
-42
Up-front fee and Capitalized borrowing cost
115
550
Interest bearing liabilities
0
-10,772
Derivatives
0
0
Net urealized gains on non-current foreign exchange receivables and liabilities
364,173
302,065
Other
-8,116
-9,071
Tax losses carried forward
-538,821
-590,949
Total temporary differences and tax loss carried forward
-182,674
-308,218
Tax percentage
22%
22%
Deferred tax assets (-) / liabilities (+)
-40,188
-67,808
Deferred tax assets not recognized
40,188
67,808
Deferred tax assets (-) / liabilities (+) in the balance sheet
0
0
Change in deffered tax assets (-)/ liabilities (+) in the balance sheet
0
0
Total deferred tax benefit (-)/ expense (+) for the year
0
0
The following are the deferred tax liabilities (+) and assets (-) recognized by the Company and movement during 2022 and 2021 
(USD IN THOUSAND)
BALANCE
JAN 1, 2022
RECOGNIZED
IN INCOME
RECOGNIZED
IN EQUITY
TRANSLATION
DIFFERENCES
BALANCE
DEC 31, 2022
Fixed assets
-42
14
0
4
-25
Up-front fee and capitalized borrowing cost
550
-386
0
-49
115
Interest bearing liabilities
-10,772
9,871
0
901
0
Net urealized gains on non-current foreign exchange receivables and liabilities
302,065
96,185
0
-34,077
364,173
Other
-9,071
-11
0
966
-8,116
Tax losses carried forward
-590,949
-10,339
0
62,467
-538,821
Total
308,219
95,332
0
30,212
-182,674
(USD IN THOUSAND)
BALANCE
JAN 1, 2021
RECOGNIZED
IN INCOME
RECOGNIZED
IN EQUITY
TRANSLATION
DIFFERENCES
BALANCE
DEC 31, 2021
Fixed assets
-63
19
0
2
-42
Up-front fee and capitalized borrowing cost
956
-384
0
-21
550
Interest bearing liabilities
-23,440
12,211
0
457
-10,772
Derivatives
-1,488
1,477
0
12
0
Net urealized gains on non-current foreign exchange receivables and liabilities
285,448
-29,748
0
-13,131
302,065
Other
-9,376
0
0
305
-9,071
Tax losses carried forward
-599,331
-11,389
0
19,771
-590,949
Total
-347,294
31,682
0
7,394
-308,219
TAX AUDIT IN NORWAY
The Norwegian Tax office has notified REC Silicon ASA that they consider to change the company’s income tax assessment for the years 
2019-2021. The basis for this notification is an ongoing tax audit relating to whether interest should have been charged on loans provided 
from REC Silicon ASA to Rec Silicon Inc. and Rec Solar Grade Silicon LLC. As a temporary measure, due to the financial situation in these 
subsidiaries, the company has not charged interest on the loans in the period under tax audit. The company has responded to the tax office’s 
notification and the company maintains its view that the subsidiaries have not had debt bearing capacity in this period. The company has not 
recognized any deferred tax asset relating to its tax losses carry forward.

108
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Specification of other operating expenses
(USD IN THOUSAND)
2022
2021
Operating lease expenses
-17
-18
Audit remuneration 
-268
-147
Consultancy fee
-771
-865
Insurance
-252
-229
Other operating expenses
-945
-713
Total Other operating expenses
-2,253
-1,973
Audit remuneration
(USD IN THOUSAND)
2022
2021
Statutory audit
-134
-122
Other non-audit services
-134
-25
Total auditor's remuneration expensed
-268
-147
Future payment obligations
The future aggregate minimum payment obligation are as follows
2022
2021
(USD IN THOUSAND)
OPERATING LEASE
OTHER
TOTAL
OPERATING LEASE
OTHER
TOTAL
No later than 1 year
0
71
71
0
67
67
Later than 1 year but not later than 5 years
0
0
0
0
0
0
Later than 5 years
0
0
0
0
0
0
Total
0
71
71
0
67
67
 
J	
OTHER OPERATING EXPENSES

109
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
INTEREST INCOME, INTERNAL
The Company conducts financing for the Group. The Company has loans to the US operation and minor receivables on REC Silicon Pte Ltd. 
See note D and M. In 2019 the Company and the US borrowers agreed to make addendums to the loan agreements. Due to the borrowers’ 
financial position and outlook for the next two years (2019 and 2020) no interest should be calculated and paid. In 2021 the Company and 
the borrowers agreed to make new addendums to the loan agreements. Due to the borrowers’ financial position and outlook for the next two 
years (2021 and 2022) no interest should be calculated and paid. If the circumstances change during the period, the interest shall be 
changed back to the interest described in the loan agreements. No interest has been recognized in 2019, 2020, 2021 and 2022..
OTHER FINANCIAL INCOME
Other financial income in 2021 consists of reversal of derivatives and partly reversal of the indemnification loan.
On October 18, 2021 the Company and Nordea entered into an agreement to settle claims associated with the indemnification loans. Under 
the agreement Nordea releases all claims against the Company for NOK 95 million (USD 10.8 million). Consequently, NOK 105 million of 
total NOK 200 million of the indemnification loans have been taken to profit and loss. The settlement consisted of approximately NOK 32 
million (USD 3.6 million) to be settled through an existing escrow account which the Company held with Nordea with the balance settled in 
one payment of approximately NOK 63 million (USD 7.2 million) by the end of February 2022.
INTEREST EXPENSES, EXTERNAL
Specification of interest expenses, external
(USD IN THOUSAND)
2022
2021
Interest USD Senior Secured bond
-13,119
-13,066
Total Interest expenses, external
-13,119
-13,066
 
Interest expenses on USD Senior Secured bond include expensing of upfront fees, see note 25 to the consolidated financial statements.
CURRENCY GAINS AND LOSSES
Specification of net currency gains and losses
(USD IN THOUSAND)
2022
2021
Net currency gains on liabilities denominated in NOK
0
749
Net currency gains / losses on other - mainly bank deposit
-7,140
73
Total Net currency gains and losses
-7,140
822
 
K	
INTEREST AND CURRENCY

110
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
DERIVATIVES
Derivatives consisted in 2021 of an option contract as part of the indemnification agreement associated with the REC Wafer bankruptcy.  
On October 18, 2021 the Company and Nordea entered into an agreement to settle claims associated with the indemnification loans. 
Consequently, the derivate has been taken to profit and loss, NOK 12,7 million. The liability for the option contract related to the 
indemnification loans is zero at December 31, 2021 and 2022.
Specification of other current liabilities
AT DECEMBER 31 (USD IN THOUSAND)
2022
2021
Accrued interest on interest-bearing liabilities
2,741
2,741
 Accrued operating costs 
304
121
Total Other current liabilities
3,045
2,862
2022
(USD IN THOUSAND)
SHARES IN 
REC SILICON AS
RECEIVABLES  
RELATED TO  
US OPERATIONS
RECEIVABLES 
RELATED TO 
REC SILICON PTE LTD
Par value / cost at January 1
108,104
1,001,928
5,208
Accumulated impairment at January 1
-108,093
-808,228
-5,208
Carrying value at January 1
11
193,700
0
Addition
0
85,009
0
Impairment
0
-68,709
0
Carrying value at December 31
11
210,000
0
Par value / cost at December 31
108,104
1,086,937
5,208
Accumulated impairment at December 31
-108,093
-876,937
-5,208
 
2021
(USD IN THOUSAND)
SHARES IN 
REC SILICON AS
RECEIVABLES  
RELATED TO  
US OPERATIONS
RECEIVABLES 
RELATED TO 
REC SILICON PTE LTD
Par value / cost at January 1
108,104
1,001,928
5,208
Accumulated impairment at January 1
-108,093
-782,528
0
Carrying value at January 1
11
219,400
5,208
Addition
0
0
0
Impairment
0
-25,700
-5,208
Carrying value at December 31
11
193,700
0
Par value / cost at December 31
108,104
1,001,928
5,208
Accumulated impairment at December 31
-108,093
-808,228
-5,208
L	
DERIVATIVES, OTHER CURRENT LIABILITIES
M	
IMPAIRMENT OF FINANCIAL ASSETS

111
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Receivables related to US operations consists of loans to REC Silicon Inc, REC Solar Grade Silicon LLC and REC Silicon AS.
REC Silicon ASA owns all the shares in REC Silicon AS which owns REC Silicon Inc. that is the holding company of the USA operations. In 
addition, REC Silicon AS owns all the shares in REC Silicon Pte Ltd.
In 2020 REC Silicon AS impaired the value of the shares in REC Silicon Pte Ltd with USD 12.9 million. As a consequence of the impairment 
loss in REC Silicon AS, REC Silicon ASA impaired their shares in REC Silicon AS.
REC Silicon AS shares in REC Silicon Inc, were impaired to zero in 2016.
The impairment loss in 2022 and 2021 represents the book value in excess of the fair value of loans to REC Silicon ASA’s subsidiaries.
Estimates of the value of US operations were calculated using the fair values of financial assets and liabilities held by the US entities and 
the net present value of cash flows of operations in the United States.
REC Silicon ASA did not conduct any activities associated with research and development during 2022 and 2021. 
N	
RESEARCH AND DEVELOPMENT

112
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
Bank guarantees at December 31, 2022 amounted to USD 1.1 million with USD 0.2 million of restricted cash as security. Bank guarantees at 
December 31, 2021 amounted to USD 5.1 million, against which the Company has pledged USD 3.8 million of restricted cash. This includes 
bank guarantees for the benefit of REC Solar AS of USD 1.1 million with USD 0.2 million of restricted cash as security. USD 3.6 million of 
restricted cash will be used as part of the Nordea settlement (see note 14 in the Group statement). 
The Company provided parent company guarantees for the REC Solar Group related to the performance of solar panels and systems and the 
sale of REC ScanModule AB. The Group has been provided with offsetting guarantees by REC Solar Holdings AS. The guarantees are valid for 
relevant warranty periods and are limited by warranties provided on solar panels and systems. Parent company guarantees for REC Solar 
were USD 54.9 million at December 31, 2022 and USD 54.7 million at December 31, 2021. The guarantees will decrease from 2023 to 2039 
when they will expire in their entirety.
The Company and some of its subsidiaries are jointly and severally liable for certain loans established by the Company. 
•	 Relevant loan agreement at December 31, 2022 was as follows:
–	 REC04: USD Senior Secured Callable bond, USD 110 million. The tenor is from April 13, 2018 to April 13, 2023
•	 The Company and the following subsidiaries of the Company are jointly and several liable for the above-mentioned loan at December 31, 
2022: REC Silicon AS, REC Silicon Inc., REC Advanced Silicon Materials LLC, REC Solar Grade Silicon LLC and REC Silicon Pte. Ltd.
Related parties’ transactions for the Company are primarily interest income (see the income statement and note K) and loans to its 
subsidiaries (see note D and M)). These loans are included in non-current receivables from subsidiaries (see the balance sheet). Group 
Management and Board of Directors’ compensation, ownership of shares and options, loan agreements and guarantees are shown in note 
16 to the consolidated financial statements.
REC had no contingent liabilities at December 31, 2022 and 2021.
O	
GUARANTEES AND INDEMNIFICATION AGREEMENTS
P	
RELATED PARTIES
Q	
CONTINGENT LIABILITIES

113
Notes to the financial statements,
REC Silicon ASA
REC Silicon Annual Report 2022
On January 31, 2023 REC Silicon ASA (“REC Silicon” or the “Company”) announced the entering into of a binding term sheet between its 
subsidiary REC Solar Grade Silicon LLC and Hanwha Solutions for a 10 year take-or pay offtake for FBR polysilicon produced at REC 
Silicon’s facility at Moses Lake, Washington (the “Offtake”). The Offtake provides for the sale to Hanwha Solutions of 100% of the prime 
FBR production from the facility.
The base price for the Offtake will be determined by market indices adjusted for a premium for US-sourced low carbon material. The base 
price is also subject to both a minimum and maximum that protects REC Silicon against potential future low market prices that could 
otherwise threaten the long-term prospects for the Company. To secure the offtake obligations and to provide security in support of the 
restart of the Moses Lake facility, Hanwha Solutions will, upon entering into the full form agreement, make a significant prepayment (the 
“Prepayment”). The parties expect that a full form agreement including all operational details will be entered into in the coming months and 
will be announced when finalized.
On March 21, 2023 the Company announced a corporate debt financing of USD 110 million from KEB Hana Bank in Korea for the purpose of 
retiring the senior secured bond that matures on April 13, 2023. The contemplated debt financing will be fully guaranteed by REC Silicon’s 
largest shareholder Hanwha Solutions, which will result in favorable terms compared to other financing alternatives.  In addition to this USD 
110 million debt financing, the ongoing restart activities of the company’s polysilicon factory in Moses Lake and capacity investments in 
Butte, will require additional financing. REC Silicon is in the process of exploring all funding options, including debt financing and pre-
payments from offtake contracts, and the company is confident that funds will be raised well in advance of such capital needs. REC Silicon 
will update the market as financing plans are concluded.
R	
EVENTS AFTER THE REPORTING PERIOD

REC Silicon Annual Report 2022
114
AUDITOR’S REPORT
KPMG AS 
Sørkedalsveien 6 
P.O. Box 7000 Majorstuen 
N-0306 Oslo 
Telephone +47 45 40 40 63 
Internet www.kpmg.no 
Enterprise 935 174 627 MVA 
 
 
 
To the General Meeting of REC Silicon ASA  
 
Independent Auditor’s Report 
Report on the Audit of the Financial Statements  
Opinion 
We have audited the financial statements of REC Silicon ASA, which comprise:  
• 
The financial statements of the parent company REC Silicon ASA (the Company), which 
comprise the balance sheet as at 31 December 2022, the income statement and statement of 
cash flows for the year then ended, and notes to the financial statements, including a 
summary of significant accounting policies, and 
 
• 
The consolidated financial statements of REC Silicon ASA and its subsidiaries (the Group), 
which comprise the consolidated statement of financial position as at 31 December 2022, the 
consolidated statement of income, consolidated statement of comprehensive income, 
consolidated statement of changes in equity and consolidated statement of cash flows for the 
year then ended, and notes to the consolidated financial statements, including a summary of 
significant accounting policies. 
 
In our opinion 
• 
the financial statements comply with applicable statutory requirements, 
 
• 
the financial statements give a true and fair view of the financial position of the Company as at 
31 December 2022, and its financial performance and its cash flows for the year then ended in 
accordance with Norwegian Accounting Act and accounting standards and practices generally 
accepted in Norway, and 
 
• 
the consolidated financial statements give a true and fair view of the financial position of the 
Group as at 31 December 2022, and its financial performance and its cash flows for the year 
then ended in accordance with International Financial Reporting Standards as adopted by the 
EU. 
 
Our opinion is consistent with our additional report to the Audit Committee.  
Basis for Opinion 
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our 
responsibilities under those standards are further described in the Auditor’s Responsibilities for the 
Audit of the Financial Statements section of our report. We are independent of the Company and the 
Group as required by relevant laws and regulations in Norway and the International Ethics Standards 
Auditor’s report

REC Silicon Annual Report 2022 115
 
 
2 
Board for Accountants’ International Code of Ethics for Professional Accountants (including 
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical 
responsibilities in accordance with these requirements. We believe that the audit evidence we have 
obtained is sufficient and appropriate to provide a basis for our opinion. 
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit 
Regulation (537/2014) Article 5.1 have been provided. 
We have been the auditor of the Company for 22 years from the election by the general meeting of the 
shareholders on 14 May 2001 for the accounting year 2001. 
Key Audit Matters 
Key audit matters are those matters that, in our professional judgment, were of most significance in 
our audit of the financial statements of the current period. These matters were addressed in the 
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we 
do not provide a separate opinion on these matters.  
Asset Impairment 
 
Refer to the section “Risk Factors” in the Board of Director's report, the accounting policies in note 2.8, 
the critical accounting judgments and key sources of estimation uncertainty described in Note 4, and 
Note 8 in the consolidated financial statements and parent company financial statements note M. 
The Key Audit Matter 
How the matter was addressed in our audit 
                                                                        
The impairment assessment of the Solar 
Materials CGU with a total carrying value of 
USD 49.5 million is considered a risk area due 
to recurring net operating losses, increased raw 
material prices, changes in markets for solar 
grade polysilicon, changes to the discount rate 
and uncertainties related to the anticipated 
restart of FBR production at the Moses Lake 
production facility. 
The recoverable amount is determined based on 
value in use calculations which rely on external 
factors, managements’ assumptions, and 
estimated future performance. Key assumptions 
applied in management's assumptions are future 
revenues (sales prices and sales volume), cost 
of major inputs, conversion costs and yield ratio 
(production volume), government grants 
expected to be received from the US Inflation 
Reduction Act, and maintenance capital 
expenditures, in addition to the timing of restart 
of the Moses Lake production facility.  
Significant professional judgement is required 
when evaluating whether management's 
assessment are reasonable and supportable. 
In the parent company financial statements, the 
abovementioned impairment assessment 
resulted in an impairment of loans to 
subsidiaries of USD 68.7 million. 
In the consolidated financial statements, no 
additional impairment or reversal of impairment 
was recognized. 
 
Our audit procedures in this area included:  
- 
We evaluated the historical accuracy of 
management's budgets and forecasts and 
challenged management on the current year 
cash flow forecasts as well as the timing of 
future cash flows;  
- 
We evaluated the growth assumptions and 
management's future business plan 
assumptions; 
- 
We engaged our own valuation specialists 
to assess the mathematical and 
methodological integrity of management's 
impairment models and the discount rates 
applied with reference to market data; 
- 
We evaluated management’s sensitivity 
analysis to determine the impact of 
reasonably possible changes and by 
comparing to our own sensitivity analysis;  
- 
We considered the impairment disclosures 
in light of the requirements and if information 
regarding key assumptions and sensitivities 
adequately reflected the underlying assets 
impairment assessments; and 
- 
We compared the carrying value of loans to 
the subsidiaries with the calculated value of 
the assets, to assess if valuation of loans is 
consistent with the value of the assets.  
 
 
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REC Silicon Annual Report 2022
116
 
 
3 
Other Information 
The Board of Directors and the Managing Director (management) are responsible for the information 
in the Board of Directors’ report and the other information accompanying the financial statements. The 
other information comprises information in the annual report, but does not include the financial 
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover 
the information in the Board of Directors’ report nor the other information accompanying the financial 
statements. 
In connection with our audit of the financial statements, our responsibility is to read the Board of 
Directors’ report and the other information accompanying the financial statements. The purpose is to 
consider if there is material inconsistency between the Board of Directors’ report and the other 
information accompanying the financial statements and the financial statements or our knowledge 
obtained in the audit, or whether the Board of Directors’ report and the other information 
accompanying the financial statements otherwise appear to be materially misstated. We are required 
to report if there is a material misstatement in the Board of Directors’ report or the other information 
accompanying the financial statements. We have nothing to report in this regard. 
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report 
• 
is consistent with the financial statements and 
• 
contains the information required by applicable statutory requirements. 
Our opinion on the Board of Director’s report applies correspondingly to the reports on Corporate 
Governance and Sustainability Report.  
Responsibilities of Management for the Financial Statements 
Management is responsible for the preparation of financial statements that give a true and fair view in 
accordance with the Norwegian Accounting Act and accounting standards and practices generally 
accepted in Norway, and for the preparation and true and fair view of the consolidated financial 
statements of the Group in accordance with International Financial Reporting Standards as adopted 
by the EU, and for such internal control as management determines is necessary to enable the 
preparation of financial statements that are free from material misstatement, whether due to fraud or 
error. 
In preparing the financial statements, management is responsible for assessing the Company’s and 
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going 
concern. The financial statements of the Company use the going concern basis of accounting insofar 
as it is not likely that the enterprise will cease operations. The consolidated financial statements of the 
Group use the going concern basis of accounting unless management either intends to liquidate the 
Group or to cease operations, or has no realistic alternative but to do so. 
Auditor’s Responsibilities for the Audit of the Financial Statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that 
an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. 
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, 
they could reasonably be expected to influence the economic decisions of users taken on the basis of 
these financial statements. 
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain 
professional scepticism throughout the audit. We also: 
• 
identify and assess the risks of material misstatement of the financial statements, whether due 
to fraud or error. We design and perform audit procedures responsive to those risks, and 
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The 
risk of not detecting a material misstatement resulting from fraud is higher than for one 
resulting from error, as fraud may involve collusion, forgery, intentional omissions, 
misrepresentations, or the override of internal control. 
 
Auditor’s report

REC Silicon Annual Report 2022 117
 
 
4 
• 
obtain an understanding of internal control relevant to the audit in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing an 
opinion on the effectiveness of the Company's and the Group's internal control. 
 
• 
evaluate the appropriateness of accounting policies used and the reasonableness of 
accounting estimates and related disclosures made by management. 
 
• 
conclude on the appropriateness of management’s use of the going concern basis of 
accounting and, based on the audit evidence obtained, whether a material uncertainty exists 
related to events or conditions that may cast significant doubt on the Company's and the 
Group's ability to continue as a going concern. If we conclude that a material uncertainty 
exists, we are required to draw attention in our auditor’s report to the related disclosures in the 
financial statements or, if such disclosures are inadequate, to modify our opinion. Our 
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. 
However, future events or conditions may cause the Company and the Group to cease to 
continue as a going concern. 
 
• 
evaluate the overall presentation, structure and content of the financial statements, including 
the disclosures, and whether the financial statements represent the underlying transactions 
and events in a manner that achieves a true and fair view. 
 
• 
obtain sufficient appropriate audit evidence regarding the financial information of the entities or 
business activities within the Group to express an opinion on the consolidated financial 
statements. We are responsible for the direction, supervision and performance of the group 
audit. We remain solely responsible for our audit opinion. 
 
We communicate with the Board of Directors regarding, among other matters, the planned scope and 
timing of the audit and significant audit findings, including any significant deficiencies in internal control 
that we identify during our audit. 
We also provide the Audit Committee with a statement that we have complied with relevant ethical 
requirements regarding independence, and to communicate with them all relationships and other 
matters that may reasonably be thought to bear on our independence, and where applicable, related 
safeguards. 
From the matters communicated with the Board of Directors, we determine those matters that were of 
most significance in the audit of the financial statements of the current period and are therefore the 
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes 
public disclosure about the matter or when, in extremely rare circumstances, we determine that a 
matter should not be communicated in our report because the adverse consequences of doing so 
would reasonably be expected to outweigh the public interest benefits of such communication. 
Report on Other Legal and Regulatory Requirements  
Report on Compliance with Requirement on European Single Electronic Format (ESEF) 
Opinion 
As part of the audit of the financial statements of REC Silicon ASA we have performed an assurance 
engagement to obtain reasonable assurance about whether the financial statements included in the 
annual report, with the file name 549300VPZURYDFG0AB60-2022-12-31-en, have been prepared, in 
all material respects, in compliance with the requirements of the Commission Delegated Regulation 
(EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant 
to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the 
preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial 
statements. 
In our opinion, the financial statements, included in the annual report, have been prepared, in all 
material respects, in compliance with the ESEF regulation. 
 
 
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REC Silicon Annual Report 2022
118
 
 
5 
Management’s Responsibilities 
Management is responsible for the preparation of the annual report in compliance with the ESEF 
regulation. This responsibility comprises an adequate process and such internal control as 
management determines is necessary. 
Auditor’s Responsibilities 
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all 
material respects, the financial statements included in the annual report have been prepared in 
compliance with ESEF. We conduct our work in compliance with the International Standard for 
Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of 
historical financial information”. The standard requires us to plan and perform procedures to obtain 
reasonable assurance about whether the financial statements included in the annual report have been 
prepared in compliance with the ESEF Regulation. 
As part of our work, we have performed procedures to obtain an understanding of the Company’s 
processes for preparing the financial statements in compliance with the ESEF Regulation. We 
examine whether the financial statements are presented in XHTML-format. We evaluate the 
completeness and accuracy of the iXBRL tagging of the consolidated financial statements and assess 
management’s use of judgement. Our procedures include reconciliation of the iXBRL tagged data with 
the audited financial statements in human-readable format. We believe that the evidence we have 
obtained is sufficient and appropriate to provide a basis for our opinion. 
 
 
Oslo, 23 March 2023 
KPMG AS 
 
Øyvind Skorgevik 
State Authorised Public Accountant 
 
 
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REC Silicon Annual Report 2022 119
DEFINITION OF ALTERNATIVE PERFORMANCE MEASURES
An Alternative Performance Measure (APM) is a measure of historic or future financial performance, financial position, or cash flows other 
than a financial measure defined or specified in the applicable financial reporting framework.
The Company has identified the following APMs used in reporting:
EBIT	
EBIT is an acronym for Earnings Before Tax and represents profit/loss excluding income tax expense/benefit, net 
financial items, and share of profit/loss from investments in associates.
	
EBIT is reflected on the consolidated statement of income on the line titled EBIT. EBIT has been reported as a 
loss of USD 58.3 million for the year ended December 31, 2022 and a loss of USD 20.8 million for the year ended 
December 31, 2021.
EBIT Margin	
EBIT margin is calculated by dividing EBIT by revenues. EBIT and revenues are reflected on the Company’s 
statement of income, in note 5 Segment Information, and in the financial highlight tables in this report in lines 
titled similarly.
	
EBIT margin has been calculated and is reported in the financial highlight tables for REC Silicon Group. 
EBITDA	
EBITDA is an acronym for Earnings Before Tax, Depreciation, and Amortization. EBITDA is EBIT excluding 
depreciation, amortization and impairment.
	
EBITDA is reflected on the consolidated statement of income on the line titled EBITDA. EBITDA has been 
reported as a loss of USD 34.9 million for the year ended December 31, 2022 and a gain of USD 7.7 million for 
the year ended December 31, 2021.
EBITDA Margin	
EBITDA margin is calculated by dividing EBITDA by revenues. EBITDA and revenues are reflected on the 
Company’s statement of income, in note 5 Segment Information, and in the financial highlight tables in this report 
in lines similarly titled.
	
EBITDA margin has been calculated and is reported in the financial highlight tables for REC Silicon Group, in the 
key financials table for each operating segment.
EBITDA Contribution	
EBITDA contribution is used to describe the contribution of each of the operating segments, other, and 
eliminations to the Company’s total EBITDA. For the operating segments, EBITDA contributions represents 
revenues less cost of manufacturing excluding depreciation and amortization. For other, EBITDA contribution 
represents primarily operating costs.
	
A table reconciling the EBITDA contribution of each operating segment along with other and eliminations to the 
Company’s total EBITDA can be found in note 5 Segment Information.
EBIT Contribution	
EBIT contribution is used to describe the contribution of each of the operating segments, other, and eliminations 
to the Company’s total EBIT. For the operating segments, EBIT contributions represents revenues less cost of 
manufacturing including depreciation and amortization. For other, EBIT contribution represents primarily 
operating costs.
	
A table reconciling the EBIT contribution of each operating segment along with other and eliminations to the 
Company’s total EBIT can be found in note 5 Segment Information.

REC Silicon Annual Report 2022
120
Equity Ratio	
The equity ratio is calculated by dividing total shareholders’ equity by total assets. Total shareholders’ equity and 
total assets are reflected on lines similarly titled on the Company’s statement of financial position.
	
At December 31, 2022, the equity ratio is 18.9 percent and is calculated by dividing USD 60.4 million total 
shareholders’ equity by USD 319.9 million in total assets. 
	
At December 31, 2021, the equity ratio is 11.3 percent and is calculated by dividing USD 33.3 million total 
shareholders’ equity by USD 294.9 million in total assets.
Net Debt	
Net debt is the carrying value of interest-bearing debt instruments less cash and cash equivalents.
	
The carrying value of debt can be found in note 17 Borrowings in the table under the caption carrying amount and 
cash can be found in the statement of financial position on the line titled cash and cash equivalents.
	
At December 31, 2022, net debt was USD 78.5 million or USD 115.2 million total carrying value of the 
Company’s debt (from note 17 Borrowings) plus 68.6 million current and non-current lease liabilities (from the 
statement of financial position) less USD 105.3 million in cash in cash equivalents. 
	
At December 31, 2021, net debt was USD 86.4 million or USD 126.4 million total carrying value of the 
Company’s debt (from note 17 Borrowings) plus 70.5 million current and non-current lease liabilities (from the 
statement of financial position) less USD 110.5 million in cash in cash equivalents.
Nominal Net Debt	
Nominal Net debt is the contractual repayment values of interest-bearing debt instruments (excluding interest) 
less cash and cash equivalents.
	
The contractual repayment values of debt can be found in note 17 Borrowings in the table under the caption 
contractual repayments including interest and cash can be found in the statement of financial position on the line 
titled cash and cash equivalents.
	
At December 31, 2022, nominal net debt was USD 78.6 million or USD 115.3 million contractual repayment 
values of the Company’s debt plus 68.6 million current and non-current lease liabilities (from the statement of 
financial position) less USD 105.3 million in cash in cash equivalents.
	
At December 31, 2021, nominal net debt was USD 87.1 million or USD 127.1 million contractual repayment 
values of the Company’s debt plus 70.5 million current and non-current lease liabilities (from the statement of 
financial position) less USD 110.5 million in cash in cash equivalents.

Graphic production: Artbox AS
REC Silicon ASA  
Lysaker Torg 5, 3 etg.
PO Box 63
1324 Lysaker
Norway
Phone +47 407 24 086
About REC Silicon
REC Silicon ASA is a leading producer of advanced silicon materials, supplying high-purity polysilicon and silicon 
gases to the solar and electronics industries worldwide. We combine over 30 years experience and best-in-class 
proprietary technology to deliver on customer expectations. Our two U.S. based plants have a capacity of more 
than 20,000 MT high-purity polysilicon. REC Silicon is headquartered in Lysaker, Norway and listed on the Oslo 
stock exchange under the ticker: RECSI.
For more information, go to: www.recsilicon.com