Elkem Asa · OSL:ELK
Elkem Asa — Non-Deal Roadshow (September 2020)
13 slides from Elkem Asa's roadshow presentation, Sep 21, 2020
Slide 1: Digital Roadshow
Digital Roadshow UBS 21 September 2020
Slide 2: Elkem: a global company with more than 110 years of history in advanced materials
Elkem: a global company with more than 110 years of history in advanced materials Elkem has a strong global platform combining the historic and cultural traditions of three unique business platforms Elkem started as a Norwegian company founded in 1904 by Sam Eyde, representing strong industrial tr
Slide 3: Three strong business areas
Three strong business areas Silicones Silicon Products Carbon Solutions BNOK 11.3* BNOK 9.3* BNOK 1.7* 51% of 42% of 7% of group sales group sales group sales End-markets End-markets End-markets Paper & Film Release Silicones Ferroalloys Automotive Automotive Silicon Silicone Rubber
Slide 4: Strong competitive position demonstrated in weak markets
Strong competitive position demonstrated in weak markets Elkem had high capacity utilisation and good sales volumes in the second quarter despite very challenging market conditions EBITDA was NOK 644 million in the second quarter 2020, including a one-off gain of NOK 61 million from an arbitrati
Slide 5: Stable operating income and EBITDA
Stable operating income and EBITDA Total operating income EBITDA ‒ Operating income up ‒ In line with 2Q-2019 2% compared to 2Q- 2019 ‒ Increase driven by ‒ Lower result in Silicones and Silicon Silicones offset by Materials Silicon Materials and Carbon 5 UBS - Digital Roadshow - 21 September 2020
Slide 6: Robust financial position
Robust financial Net interest-bearing debt (NIBD) position NOK billion Net interest bearing debt (NIBD) amounted to BNOK 8.1 as at 30 June 2020 Leverage ratio of 3.4 based on LTM EBITDA of BNOK 2.4 Increase in leverage ratio compared to previous quarter explained by dividend payment and closin
Slide 7: Covid-19 impacting global markets
Covid-19 impacting global markets Elkem has generally strong sales volumes in the second quarter despite weak market conditions impacted by Covid-19 In the third quarter, capacity utilisation will on average be reduced to around 90% across all divisions due to maintenance and weak demand. Howeve
Slide 8: Market update prices at low levels
DMC reference price China (CNY/mt) Market update prices at low levels Markets are negatively impacted by the Covid-19 situation CRU silicon 99 price EU (EUR/mt) DMC prices in China were at low levels, but recovered towards the end of second quarter, mainly driven by the government’s CNY 50 trill
Slide 9: Environment, Social and Governance A key priority
Environment, Social and Governance A key priority Safety Environment Ambition zero injuries Fossil CO2 emissions in Norway reduced by 18% by use of biocarbon Ambition 40% biocarbon by 2030 NOx emissions down 13% since 2015 Ambition 10% reduction in 2020 83 % share of renewables of 2019 total electri
Slide 10: Biocarbon strategy for environmental sustainability
Biocarbon strategy for environmental sustainability The production of silicon and ferrosilicon require use of carbon materials Carbon is used as a reducing agent in the smelting process to remove oxygen from the quartz, resulting in CO2 emissions The strategy is to reduce the use of fossil coa
Slide 11: Battery project site selected for potential materials plant in Norway
Battery project site selected for potential materials plant in Norway Rechargeable batteries are used in a wide range of applications Graphite is the leading anode material in lithium-ion battery cells and demand is expected to increase more than ten times from today’s level to 2030, mainly driv
Slide 12: Specialisation and growth: Polysil acquisition a key strategic move
Specialisation and growth Polysil acquisition a key strategic move Polysil’s main product areas Electrical applications i.e. wire and cable accessories, insulation and connectors Medical applications, i.e. catheters, drainage tubes, laryngeal masks and tubes, negative pressure ball etc. Auto
Slide 13: Elkem
«Elkem