Elkem Asa · OSL:ELK
Elkem Asa — Elkem Asa Ord — Q1 2025 Earnings Presentation
47 slides from Elkem Asa's earnings presentation, May 30, 2025
Slide 1: First quarter results 2025
First quarter results 2025
Slide 2: Agenda
Agenda Highlights 01 2 Elkem Market update & outlook O02 Financial performance O03 Appendix O04
Slide 3: Highlights
Highlights
Slide 4: CEO quote on market volatility
@Elkem Helge Aasen Chief Executive Officer G6 While global trade tensions are creating uncertainty, we are confident that Elkem is strategically well positioned to handle the market volatility due to our diversified geographic footprint and independent value chains.
Slide 5: Elkem well positioned in turbulent markets
Elkem well positioned in turbulent markets = First quarter was characterised by low demand and turbulent markets. Results were further impacted by maintenance stops and power curtailment = EBITDA in the first quarter was NOK 898 million, giving an EBITDA margin of 11% = Silicones benefitted from imp
Slide 6: Strong ESG performance
Strong ESG performance Green leadership Elkem’s climate strategy is built on two main pillars: to reduce CO, and other emissions, and to supply the green transition with critical materials Together with shipping partner NCL, Elkem is deploying two new methanol- powered container ships, which trade b
Slide 7: General markets
General markets Mounting geopolitical turmoil and trade tensions affecting markets Markets will be impacted by shifts in trade, economic policy and international security arrangements Focus on country and region of origin will likely gain increased significance Elkem’s strategy is to secure supply c
Slide 8: Market update & outlook
Market update \ IP & outlook
Slide 9: GDP growth projections in % (source OECD's report March 2025)
• GDP growth projections in % (source OECD’s report March 2025) • • Revisions relative to the latest estimates from OECD’s December 2024 Economic Outlook Upward revision by No change or Downward revision 0.3pp or more smaller than 0.3pp by 0.3pp or more 9
Slide 10: Trade measures and effects on Elkem's main trade flows
Trade measures a n d effects re) n Elkem’s main trade flows to the US and proposed tariffs Canada: 10-25% . Norway: 10% 7 E | ke m P.t. 0% for Elkem’s products Iceland: 10% 15% indicated after 90 days China: 145% Direct sales: BNOK 1.2 Direct sales: BNOK 0.4 Direct sales: BNOK 0.7 Direct sales: BNOK
Slide 11: Mixed impact and revised forecasts in the automotive industry
ral markets Mixed impact and revised forecasts in the automotive industry * The global auto industry is assessing the impact of pending trade tensions = Demand is showing signs of recovery in some markets, but the overall situation remains vulnerable = In Europe, the automotive industry has faced ch
Slide 12: Increased spending on infrastructure and defence drive metals demand
General r Increased spending on infrastructure and defence drive metals demand ets = Germany is set to establish a BEUR 500 infrastructure fund, dedicated to overhauling the country’s infrastructure network, ra Pate Use of silicon and ferrosilicon in infrastructure and defence modernising areas such
Slide 13: Stable first quarter market prices in EU
son market Stable first quarter market prices in EU = Market sentiment characterised by high uncertainty due to tensions = EU silicon prices remained stable in the first quarter but were under pressure due to imports and weak demand. Prices have declined by more than 10% since start of second quarte
Slide 14: EU ferrosilicon prices slightly improving in the first quarter
rrosil EU ferrosilicon prices slightly improving in the first quarter = Market sentiment characterised by high uncertainty. High imports to EU may exert renewed downward price pressure = EU ferrosilicon prices rose slightly during the first quarter driven by demand from steel markets, particularly i
Slide 15: Seasonally reduced demand
Seasonally reduced demand - DMC prices were rising = The demand recovery in China is weaker than expected, particularly in sectors like construction, textiles, and chemicals = Several upstream siloxane plants reduced production in the first quarter due to maintenance activities = DMC prices in China
Slide 16: Underperforming markets impacting demand for core products
Carbon market Underperforming markets impacting demand for core products = The demand for carbon products is influenced by regional factors, particularly in the steel, ferroalloys, and aluminium sectors Crude steel production (million mt) = Inthe first quarter of 2025, global steel production has fa
Slide 17: Outlook for the second quarter 2025
Outlook for the second quarter 2025 = Markets characterised by significant uncertainty due to global trade tensions, but Elkem well positioned due to diversified geographic footprint and independent value chains = Silicones markets likely affected by trade tensions. Disruptions in the Chinese market
Slide 18: Financial performance
_ Financial performance
Slide 19: Elkem group
Elkem group Operating revenue & EBITDA higher than 10-2024 Total operating income (MNOK) 2024 EBITDA (MNOk) 2024 = 2025 = 2025 15% 14% Total operating income gai) BREy 842° 8,056 8,498 EBITDA up compared 12% ° slightly up compared to to 1Q-2024 0% 11% _— ES 1161 1Q-2024 sos fs 724 19 29 3Q 4Q 19 29
Slide 20: Elkem Group
Elkem Gi Overview financial ratios " The Silicones division is classified as discontinued operations and assets held for sale. The financial figures below refer to Elkem group including Silicones = EBITDA MNOK 898 = Segment Other included realised currency hedging losses of MNOK -34 = Other items MN
Slide 21: Silicon Products
Silicon Products Impacted by maintenance stops and weak markets = Total operating income of MNOK 3,530, down 12% from the first quarter last year = Lower operating income mainly explained by lower sales volume = EBITDA of MNOK 489, down 28% from the first quarter last year = The quarter was negative
Slide 22: Carbon Solutions
Carbon Solutions Good performance in challenging markets = Total operating income MNOK 860, up 3% from the first quarter last year = Higher operating income generated by favourable sales mix and currency effects, partly countered by lower sales prices = EBITDA of MNOK 261, up 5% from the first quart
Slide 23: EBITDA significantly up from last year
EBITDA significantly up from last year = Total operating income of MNOK 3,873, up 16% from the first quarter last year = Higher sales volume was partly countered by lower commodity sales prices = EBITDA of MNOK 201, substantially up from MNOK -103 in the first quarter last year = Mainly driven by im
Slide 24: Strong equity position - EPS negatively affected by operations under review
Strong equity position - EPS negatively affected by operations that are under strategic review "Earnings per share (EPS) amounted to NOK -0.33 in the first quarter = Total equity amounted to BNOK 24.9 as at 31 March 2025, down = EPS improved compared to the corresponding period last year, but BNOK 1
Slide 25: Good maturity profile
Good maturity profile = Net interest-bearing debt (NIBD) BNOK 11.0 as at 31 March 2025 = Leverage ratio of 2.5x based on LTM EBITDA of BNOK 4.3 Good financing position = Well distributed and managed maturity profile with low upcoming debt repayments = The interest cover ratio was 5.6x by end of firs
Slide 26: Focus on cash flow generation, reducing investments
Focus on cash flow generation, reducing investments "Cash flow from operations was MNOK 97 in the first quarter 2025 " Cash flow was negatively impacted by working capital changes * Cash flow excluding Silicones was MNOK 395 in the quarter = Investments ex. M&A of MNOK 414 in the first quarter 2025
Slide 27: Key take-aways
Key take-aways " Markets characterised by significant uncertainty due to ongoing disputes on trade and tariffs * Going forward, Elkem will focus on cash generation and disciplined capital spending = Silicones benefitting from improved cost positions in China and France. Trade tensions affecting the
Slide 28: 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 29: Appendix
Appendix
Slide 30: We are Elkem
We are Elkem Advanced silicon-based materials shaping a better and more sustainable future Silicones Silicon products Carbon solutions @Elkem
Slide 31: Why invest in Elkem?
Why invest in Elkem? ras Creating value through profitable & sustainable growth & Global leader in advanced silicon- based materials @Elkem i Leading cost positions and strong results over the cycle alld Geographically diverse and resilient business model 6 a Supplier of critical Strong commitment m
Slide 32: Elkem operates through three divisions
Elkem operates through three divisions: All with global scale, leadership positions and global footprint Silicones Silicon products Carbon solutions Fully integrated silicones manufacturer Leading producer of electrode paste and specialty with focus on specialities products 46% of operating income E
Slide 33: Sustainable business model delivering good results
Sustainable business model delivering good results Low-cost sustainable input factors Quartz Coal Biocarbon Power 83e High temperature/chemical production processes ¥ ey Silicones Silicon, ferrosilicon, foundry products and microsilica oO Carbon solutions Examples of high value applications and mark
Slide 34: Creating value through profitable & sustainable growth
gy Creating value through profitable & sustainable growth Dual-play growth > Driving growth & value creation in all three divisions > Securing supply chain resilience through geographical diversification Green leadership > Cutting emissions & resource-use to reach climate- neutral production > Enabl
Slide 35: Energy cost position
Energy cost po Power a key input factor, Location of Elkem’s plants in price areas Elkem securing favourable cost position Forward market prices 2025-2027 @ <50 EUR/MWh @ 50-75 EUR/MWh @ > 75 EUR/MWh = Elkem is well-positioned with long-term power contracts in Norway. At least 75% of the electricity
Slide 36: Delivering good results over the business cycle
Delivering good results Operatna neone mares over the business cycle mm Hag 2020 2021 2022 2023 2024 2020 202! 2022 20232024 Cash flow from operations aii 2020 2021 2022 20232024 2020 2021 2022 2023 ©2024 Leverage ratio Equity ratio 0.4 on | 2020 2021 2022 2023-2024 2020 2021 2022 2023-2024 Figures
Slide 37: Elkem's portfolio is well-balanced
Elkem’s portfolio is well-balanced —_ a . . ‘e- = all j an y = = : Ate \ VV \ { 7th fo fi L ie 7 = Revenue split Revenue split c L By geography By division f\ au Carbon Solutions e 10% f ‘a Silicones ) r 2 Asia 46% Sid \ \ EMEA & Wt Americas Ga Silicon Products 44% @Elkem : 37
Slide 38: Environment, social & governance
& governance Commitment to reduce CO, emissions through the value chain Reduce our emissions and achieve fully climate-neutral production = Target to reduce scope 1 and 2 emissions by 25%, and deliver a carbon footprint reduction (scope 1-3) by 32% by 2030 = Supply key input factors required to SG e
Slide 39: Solutions to global megatrends
Solutions to global megatrends Total production capacity Product properties > 100,000 mt in France > 360,000 mt in China. ~ Downstream specialty plants: 6 in EMEA/AMS. and 4 in APAC management, electrical & fire safety, Ageing population Rising middle class Digitalisation Prosthetics precision mould
Slide 40: Serving attractive end markets with advanced technologies
Serving attractive end markets with advanced technologies > Medical adhesives, > Leading position in > Intermediates long-term implants, Release coatings for (silicones medical devices etc. food & label industries polymers) sold to chemical > Leader in Orthosis & > Solventless, emulsion, Prosthesis
Slide 41: Silicon — attractive cost position and downstream integration
Silicon — attractive cost position and downstream integration Electricity @Elkem Total production capacity 205.000* mt in Norway and China > 175.000* mt silicon grades > 20.000 mt Silgrain® > 10.000 mt Silgrain® specialties Properties > Raw material in silicones and polysilicon optimising selectivit
Slide 42: Ferrosilicon — high quality products to specialty steel
Ferrosilicon — high quality products to specialty steel Coal and biocarbon Electricity Total production capacity > 185,000 mt in Norway and Iceland > 40% High Purity grades > 35% Refined grades > 25% Standard grades > Flexibility to switch grades Properties > Deoxidising steel > Impurity management
Slide 43: Foundry Alloys — global leader in cast iron metal treatment
Foundry Alloys — global leader into wenn cast iron metal treatment Ferrosilicon Iron foundries woupe ©brembo Automotive (55%) ss Alloying elements Total production capacity OBE Bomoccne &-—- > 190.000 mt globally > 60% FSM > 20% Low potent inoculants oa » > 20% High/Medium potent inoculants » Engine
Slide 44: Microsilica — tailor made products to wide range of specialty applications
Microsilica — tailor made products to wide range of specialty applications Construction (30%) @MAPET rc MINIPPONSTEEL © Unicon Hmeuw etex norseTonS Total production capacity one > 300.000 mt microsilica globally (40% sourced externally) Refractories (30%) > 35,000 mt other specialty materials AEFRAT
Slide 45: 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 350 — USD - exposure approx. MUSD 100 — CNY - exposure approx. MCNY 500 = Current cash flow hedging programme — 90% hedging of net cash flows o
Slide 46: Other financial sensitivities
Other financial sensitivities 7 6, Power Sales prices = Electric power is a key input factor in Elkem’s production. The normal consumption is around 6.5 TWh of which approx. 3.6 TWh is in Norway. Near term exposure to spot power prices is limited = Changes in sales prices could significantly affect
Slide 47: Elkem - Delivering your potential
«~ Elkem Delivering your potential