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Notes to the consolidated financial
statements, REC Group
REC Annual Report 2011
At December 31, 2011
BEFORE ADJUSTED
BONUS FACTOR
ADJUSTMENT FACTOR
ADJUSTED
PROGRAM EXERCISE PRICE
NO. OPTIONS
2009
2010
EXERCISE PRICE NO. OPTIONS
EXERCISE PRICE NO. OPTIONS
2008
178.59
246 490
1.15
1.19
0.73
1.37
130.53
337 248
2009
52.48
1 760 101
1.00
1.19
0.84
1.19
44.00
2 099 430
2010
20.61
5 070 571
1.00
1.00
1.00
1.00
20.61
5 070 571
2011
13.57
7 345 429
1.00
1.00
1.00
1.00
13.57
7 345 429
Total
14 422 591
14 852 677
These adjustments are to make the option holders equally well of as prior to the dilution in the rights issues. The total fair values are thus
unchanged.
EMPLOYEE SHARE PURCHASE PROGRAM
For 2011, the REC Group had no employee share purchase program. In 2010 the REC Group had an employee share purchase program.
The program offered all employees in REC ASA and its subsidiaries to purchase shares up to a maximummarket value of NOK 35,000 per
employee with a discount of 15 - 20 percent. For 2010, the number of shares allocated was 351,347 at a weighted average share price of
NOK 17 on November 15, 2010. Five percent of the employees participated in the program for 2010.
EVENTS AFTER THE REPORTING PERIOD
With prospects of continued negative operating results, REC decided on March 20, 2012 to permanently close down the 300MW
monocrystalline wafer plant in Glomfjord. About 200 employees are affected. The fixed assets of the cash-generating unit RECWafer Mono
were written down to zero in 2011 based on estimated value in use (see note 7). REC expects to recognize restructuring costs, onerous
contracts and other obligations, as well as potential write down of inventories and other assets in relation to the close down in the first
quarter of 2012. Such amounts have not been quantified as of this date.
REC has on March 20, 2012 signed an amendment to the bank loan agreement to improve the covenant path and exclude costs from
EBITDA in the covenant calculation related to the close down of production capacity in Norway (limited to NOK 1.6 billion for a period
including the fourth quarter 2011 to, and including, the second quarter 2013). The facility amount has been reduced fromNOK 8.6 billion to
NOK 4 billion, which REC regards as sufficient. The entire amount of NOK 4 billion is available until the maturity of the facility in May 2013.
REC has further agreed on certain restrictions, including a maximum annual capital expenditure aligned with REC’s current business plans.
See notes 3 and 17 for further information on the credit facility.
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