Elkem Asa · OSL:ELK
Elkem Asa — Q3 2022 Earnings Presentation
23 slides from Elkem Asa's earnings presentation, Oct 26, 2022
Slide 1: Third quarter results 2022
Third quarter results 2022
Slide 2: Agenda
Agenda Business update By CEO Helge Aasen Financial performance By CFO Morten Viga Outlook By CEO Helge Aasen
Slide 3: Strong third quarter results, despite weaker market conditions
Strong third quarter results, despite weaker market conditions = Solid third quarter results, demonstrating Elkem’s robust business model = Challenging energy markets, particularly in EU, has resulted in lower steel and aluminium production affecting the demand for several of so Elkem’s products Tot
Slide 4: Environmental, Social & Governance
Environmental, Social & Governance ESG - a key priority A clear focus on ESG = Awarded Platinum sustainability rating from EcoVadis for 2022 = Ranked A in 2022 for ESG reporting by Position Green’s assessment of the top listed Norwegian, Danish and Swedish companies = Elkem is ranked in the 90 perce
Slide 5: Growth & specialisation
Growth & specialisation New medical grade silicones facility in the US = In September, Elkem celebrated the grand opening of its new specialised silicones facility in York, S.C. " The facility will produce high purity silicone materials meeting the strict requirements in medical implantable and phar
Slide 6: Global EV sales forecast by drivetrain and region
Global EV* sales forecast by drivetrain (in million) ▪ ▪ ▪ Global EV* sales forecast by region (in million) ▪ ▪
Slide 7: DMC reference price China (CNY/mt)
▪ DMC reference price China (CNY/mt) ▪ ▪ ▪ DMC reference prices are based on quotes incl. VAT and transportation. Quotes may not always reflect accurate sales prices.
Slide 8: CRU silicon and ferrosilicon price EU (EUR/mt)
CRU silicon 99 price EU (EUR/mt) ▪ ▪ CRU ferrosilicon 75 price EU (EUR/mt) ▪ ▪
Slide 9: Crude steel production (million mt)
Crude steel production (million mt) ▪ ▪ ▪ ▪ ▪ ▪
Slide 10: Elkem group
Elkem group Silicon Products and Carbon Solutions deliver in unstable markets Total operating EBITDA income = Up 28% from 3Q- 8,796 = Up 55% compared 2021 7,193 7,332 to 3Q-2021 1Q 2Q 3Q 1Q 2Q = Driven by higher = Strong result for sales prices for Silicon Products Ste 11,293 i upstream products 239
Slide 11: Elkem Group: Overview financial ratios
Elkem Group Overview financial ratios = EBITDA MNOK 3,302 = Segment Other included realised currency hedging losses of MNOK -9 = Other items MNOK 1,075 = Mainly explained by gain on power contracts MNOK 651 and currency gain on working capital items MNOK 320 = Net finance income (expenses) MNOK 5 =
Slide 12: Total operating income, EBITDA and margin, sales volume
Total operating income ▪ EBITDA and margin ▪ ▪ ▪ ▪ Sales volume Share of operating income from Share of EBITDA ex. external customers ex. Other Other and Eliminations
Slide 13: Total operating income, EBITDA and margin, sales volume
Total operating income ▪ EBITDA and margin ▪ ▪ ▪ ▪ ▪ Sales volume ▪ Share of operating income from Share of EBITDA ex. external customers ex. Other Other and Eliminations
Slide 14: Total operating income, EBITDA and margin, sales volume
Total operating income ▪ EBITDA and margin ▪ ▪ ▪ ▪ Sales volume Share of operating income from Share of EBITDA ex. external customers ex. Other Other and Eliminations
Slide 15: Earnings per share (EPS) and equity ratio
Earnings per share (EPS) ▪ ▪ ▪ Equity ratio ▪ ▪ ▪
Slide 16: Net interest-bearing debt (NIBD) and maturity profile
Net interest-bearing debt (NIBD) ▪ ▪ ▪ Maturity profile ▪ ▪ ▪ ▪
Slide 17: Cash flow from operations and investments ex. M&A
Cash flow from operations ▪ ▪ ▪ Investments ex. M&A ▪ ▪ ▪ ▪
Slide 18: Outlook for the fourth quarter 2022
Outlook for the fourth quarter 2022 = Market sentiment impacted by high energy prices in Europe, macroeconomic uncertainty and slower growth = Silicones market in China is weak going into the fourth quarter. Demand and prices holding up for specialties in EMEA and the US = Demand for silicon and fer
Slide 19: Important notice
Important notice Any statement, estimate or projection included in this presentation (or upon which any of the conclusions contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (f
Slide 20: Appendix
2 Elkem Appendix 20
Slide 21: Currency sensitivity
Currency sensitivity = The result and cash flow are exposed to currency fluctuations. The main currencies are EUR, USD and CNY = EUR - exposure approx. MEUR 430 in 2022 = USD - exposure approx. MUSD 250 in 2022 = CNY - exposure approx. MCNY 1,700 in 2022 = Current cash flow hedging programme = 90% h
Slide 22: Other financial sensitivities
Other financial sensitivities POWER = Electric power is a key input factor in Elkem’s production. The normal consumption is around 6.5 TWh of which approx. 3.7 TWh is in Norway. Near term exposure to spot power prices is limited = Norway, hedging programme mainly consisting of long-term contracts co
Slide 23: Delivering your potential
~ Elkem Delivering your potential