Elkem Asa · OSL:ELK
Elkem Asa — Elkem Asa Ord — Q3 2025 Earnings Presentation
46 slides from Elkem Asa's earnings presentation, Oct 23, 2025
Slide 1: Third quarter results 2025
Third quarter results 2025
Slide 2: Agenda
Agenda Highlights 01 2 Elkem Market update & outlook O02 Financial performance O03 Appendix O04
Slide 3: Highlights
Slide 4: CEO comments on performance and strategic review
(a ee | 664 a Strong operating performance and cost improvements are supporting our results despite challenging market conditions. The strategic review is progressing according to plan. We expect to conclude the transaction in the dae ier first half of 2026. Chief Executive Officer @ Elkem
Slide 5: Results supported by strong operational performance and cost improvements
Results supported by strong operational performance and cost improvements = Sales prices remain at low levels, but results supported by strong operational performance and cost improvements = Silicon Products impacted by low silicon and ferrosilicon prices, while speciality segments delivered improve
Slide 6: Strong ESG performance
Strong ESG performance Green leadership = Elkem supports the green transition through the supply of critical materials, and works systematically to cut emissions, waste, and reduce resource-use = Circularity plays a crucial role in reducing waste and carbon emissions. Elkem has presented a new break
Slide 7: Highly specialised products offering attractive growth opportunities
Highly specialised products offering attractive growth opportunities Highly specialised Elkem Microsilica® to advanced applications Green products to metallurgical industries = Elkem offers a wide range of microsilica, carefully selected to = Elkem is a leading producer of electrode paste and rammin
Slide 8: Strong cost position based on operational excellence
Strong cost position based on operational excellence = Elkem has a strong cost position due to operational excellence, economies of scale, and upstream integration into quartz and electrode paste = Long-term electricity agreements utilising renewable hydropower in Norway, Iceland, Canada, and Paragu
Slide 9: Potential trade barriers affecting markets
General markets Potential trade barriers affecting markets EU is considering safeguard measures that could come into effect fro! 19 November 2025 Measures will be aimed at raising prices and protecting internal production within EU. It is unclear how Norway and Iceland will be affected The regulatio
Slide 10: Strategic review process according to plan
Corporate strategy Strategic review process according to plan = Elkem has initiated a strategic review to sell the Silicones division in order to streamline the company and redirect capital towards accelerating growth in the Silicon Products and Carbon Solutions divisions = Elkem has now entered an
Slide 11: Market update & outlook
Market update & outlook
Slide 12: Weak automotive markets - updated forecast shows modest growth
General markets Weak automotive markets - updated forecast shows modest growth = Production of light vehicles remains low. Overall production in EU characterised by weak order intake and registrations in H1-2025 = Forecasts have been revised upward as markets adapt to ongoing trade and structural ch
Slide 13: Silicon market impacted by weak demand and trade regulations
Silicon market Markets impacted by weak demand and trade regulations = In EU, silicon reference prices dropped by approximately 20% in late June, pressured by low import prices = EU prices then recovered modestly in September due to improved market balance following capacity curtailments and higher
Slide 14: Possible safeguard measures resulting in price fluctuations
Possible safeguard measures resulting in price fluctuations = Market sentiment still characterised by weak demand and downward price pressure = Ferrosilicon prices in EU started to increase based on expected safeguard measures in August, but prices dropped when no preliminary measures were announced
Slide 15: Carbon market demand impacted by challenging market dynamics
Carbon market Demand impacted by challenging market dynamics = Demand for carbon products differs by region, influenced by steel, ferroalloys, and aluminium industries = Global steel production in 3Q 2025 remained stable compared to 3Q last year. Europe experienced a 3% decline, whereas North Americ
Slide 16: Overcapacity hampering price recovery from unsustainable low levels
Overcapacity hampering price recovery from unsustainable low levels = Significant price fluctuations in China during the third quarter DMC reference price China (CNY/mt) = DMC prices first rose from CNY 10 400 to CNY 12 250 per tonne, 40 000 partly due to a fire incident at a major producer asoco |_
Slide 17: Outlook for the fourth quarter 2025
Outlook for the fourth quarter 2025 = Silicon Products facing challenging conditions and low silicon and ferrosilicon demand. Leading cost positions and good performance in specialty segments mitigating negative impact = Carbon Solutions benefits from good cost positions and geographically diverse c
Slide 18: Financial performance
Financial - performance
Slide 19: Elkem group
Elkem group Lower sales prices countered by cost improvements and higher sales volume Total operating income (MNOK) 2024 EBITDA (MNOk) 2024 = 2025 = 2025 a 5 15% 14% Total operating income 7961 Bn) 24° BRRAT sose 7503 8498 EBITDA down 33% ny 2% down 7% compared to compared to 3Q-2024 9% fee 10% 124
Slide 20: Elkem Group overview financial ratios
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 829 = Segment Other included realised derivative effects of MNOK -16 Other items MNOK 78 = Con
Slide 21: Silicon Products
Total operating income Silicon Products NOK million EBITDA supported by good Py [2620 “ S643) perry Pee operating performance 1Q 2Q 3Q 4Q EBITDA and margin NOK million and % 23% a . 17 % 8% = Total operating income amounted to MNOK 3 369, representing an a 821 7% 8% decrease compared to the third qu
Slide 22: Carbon Solutions
Carbon Solutions Good margins despite challenging markets = Total operating income MNOK 822, down 7% from the third quarter last year = Lower operating income was mainly explained by lower sales prices = EBITDA of MNOK 231, down 14% from third quarter last year = Lower EBITDA mainly explained by low
Slide 23: Silicones - Under strategic review
Silicones ~ Under strategic review Higher sales volume & cost improvements offsetting lower sales prices = Total operating income of MNOK 3 631, down 6% from the third quarter last year = Higher sales volume was countered by lower commodity sales prices = EBITDA of MNOK 248, up 23% from third quarte
Slide 24: EPS impacted by weak markets and Silicones
EPS impacted by weak markets and Silicones, which is under strategic review = Earnings per share (EPS) amounted to NOK 0.05 in the third quarter = Total equity amounted to BNOK 24.0 as at 30 September 2025, down and NOK -0.77 year to date BNOK 2.1 from year-end 2024 = EPS was impacted by losses in S
Slide 25: Well managed debt position, deleveraging plan following the strategic review
Well managed debt position, deleveraging plan following the strategic review = Net interest-bearing debt (NIBD) BNOK 11.7 as at 30 September 2025 = Leverage ratio of 3.1x based on LTM EBITDA of BNOK 3.7 Good financing position = Well distributed and managed maturity profile with low near-term debt r
Slide 26: Good cash flow generation and low investments
Good cash flow generation and low investments "Cash flow from operations was MNOK 526 in the third quarter 2025 = Improved cash flow explained by lower reinvestments and working capital changes = Reinvestments MNOK 244, amounting to 39% of D&A Investments ex. M&A of MNOK 312 in the third quarter 202
Slide 27: Key take-aways
Key take-aways Elkem focusing on cash generation and disciplined capital spending in response to challenging market conditions Silicon Products has leading cost positions and strong performance within specialty segments Carbon Solutions benefits from good cost positions and a geographically diverse
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
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 Ga Supplier of critical Strong commitment
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 wo 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: Delivering good results over the business cycle
Delivering good results Operating Income EBITDA over the business cycle baspes 2020 2021 2022 2023 2024 2020 202! 2022 20232024 Elkem delivering on its financial targets over the cycle Y Operating income CAGR 8% vs target of > 5% per year v EBITDA margin 17% vs target of 15 - 20% v Leverage ratio 1.
Slide 36: Balanced portfolio: revenue split by geography and division
*s portfolio is alanced Revenue split Revenue split By geography By division Carbon Solutions 10% Asia EMEA & recy Americas 60% 9/ @Elkem | i Production site Silicones 46% Ti Stic office Miro
Slide 37: 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 38: Silicones: 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 39: 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 40: 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 selectivi
Slide 41: Ferrosilicon — high quality products to specialty steel
Ferrosilicon — high quality products to specialty steel 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 KSF Market dynamics
Slide 42: Foundry Alloys — global leader into cast iron metal treatment
Foundry Alloys — global leader into wenn cast iron metal treatment Ferrosilicon Iron foundries ] (Es G PSA ~~ ©brembo Automotive (55%) Alloying elements Total production capacity OBE Bomoccne &-—- > 190.000 mt globally > 60% FSM > 20% Low potent inoculants oa -- » > 20% High/Medium potent inoculants
Slide 43: 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 NORBETONG Total production capacity commie > 300.000 mt Microsilica® globally (40% sourced externally) Refractories (30%) > 35.000 mt other specialty materials A
Slide 44: 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 300 — USD - exposure approx. MUSD 100 — CNY - exposure approx. MCNY 500 = Current cash flow hedging programme - 90% hedging of net cash flows o
Slide 45: 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. 3.5 TWh is in Norway. Near term exposure to spot power prices is limited = Changes in sales prices could significantly affect
Slide 46: Elkem - Delivering your potential
« Elkem Delivering your potential