Elkem Asa · OSL:ELK
Elkem Asa — Q2 2025 Earnings Presentation
44 slides from Elkem Asa's earnings presentation, Aug 19, 2025
Slide 1: Second quarter results 2025
Second quarter results 2025 Lunch presentation, Oslo 19 August 2025
Slide 2: Agenda
Agenda Highlights 01 2 Elkem Market update & outlook O02 Financial performance O03 Appendix O04
Slide 3: Highlights
Slide 4: Elkem continues to face weak market conditions
\ = A G4 Elkem continues to face weak market conditions. However, our strong cost position and solid operational performance ensures stable financial results. Helge Aasen Chief Executive Officer @ Elkem
Slide 5: Strong cost positions ensure stable financial results
Strong cost positions ensure stable financial results = Market conditions remained weak in the second quarter, but results supported by good operational performance = Silicon Products was impacted by weak demand and price pressure, mainly due to Chinese imports to EU = Carbon Solutions delivered con
Slide 6: Strong ESG performance
Strong ESG performance Green leadership Safety Rated among the world’s leading = Elkem supports the green transition through the supply of critical materials, and Ambition: Zero injuries companies works systematically to cut emissions, reduce waste and resource-use. Our efforts Total injury rate (pe
Slide 7: Elkem's plants and price areas in Norway
Elkem’s plants and price areas in Norway Energy cost position New long-term power contract securing favourable a cost position Forward market prices 2025-27 Thamshavn @ <50EUR/MWh @ 50-75 EUR/MWh @ >75EUR/MWh = In the second quarter 2025, Elkem entered into a new long-term power contract. The volume
Slide 8: Strategic opportunities in infrastructure, digitalisation and defence
Strategic opportunities in infrastructure, digitalisation and defence Sustainable global infrastructure Elkem provides advanced silicon-based materials for construction, energy, mobility and smart cities The recently-opened Chenab Railway Bridge — the world’s highest single-arch rail bridge — used E
Slide 9: Market update & outlook
Market update & outlook
Slide 10: Automotive remains weak, but outlook improving
Automotive remains weak, but outlook improving * Light vehicle production remains at low levels, but with slight upward revisions. Markets constrained by trade uncertainty and structural headwinds = Europe’s 2025-2026 outlook has improved slightly, helped by expected US tariff cuts—though softer dem
Slide 11: Silicon market
on market Price decline in EU, some recovery in China = The market sentiment remained weak in the second quarter, characterised by high uncertainty and low demand = End of June, reference prices in EU were reduced by around 20%, reflecting a declining spot trend in the quarter. Prices have come down
Slide 12: Ferrosilicon market
Fer market Ferrosilicon prices up in EU = Market sentiment in the second quarter was characterised by sluggish demand and downward price pressure = EU prices declined due to trade diversion caused by higher import barriers in US. Producers in Brazil, Malaysia and Kazakhstan increasingly focusing on
Slide 13: Carbon market
Carbon market Demand for core products impacted by sluggish market = Demand for carbon products varies across regions driven by steel, ferroalloys, and aluminium Crude steel production (million mt) = Global steel production in Q2-2025 down 2% compared to last year 50 = Europe down 2% while North Ame
Slide 14: Silicones market
Sili Continued price volatility Q Market sentiment remained subdued in the second quarter due to overcapacity in China and reduced demand from construction, textiles, and chemical sectors DMC prices in China reached new lows and were down to CNY 10 400 per ton. Price decline was driven by lower raw
Slide 15: Outlook for the third quarter 2025
Outlook for the third quarter 2025 = Market conditions remain subdued, but Elkem’s financial performance is supported by strong cost and market positions = Silicon Products experiencing challenging markets and deteriorating reference prices, but leading cost positions alleviating negative impact = C
Slide 16: Financial performance
Financial - performance
Slide 17: Elkem group
Elkem group EBITDA impacted by lower sales prices but supported by strong cost positions Total operating income (MNOK) 2024 EBITDA (MNOk) 2024 = 2025 = 2025 15% 14% Total operating income —_ (Fg ey RY 249° BRBRY sos sce EBITDA down 22% 12% down 6% compared to compared to 2Q-2024 0% 1% fesgy 10% tea
Slide 18: 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 803 = Segment Other included realised derivative effects of MNOK -2 Other items MNOK 74 = Cons
Slide 19: Silicon Products
Silicon Products Weak commodity markets impacting results = Total operating income of MNOK 3 550, down 13% from the second quarter last year = Lower operating income mainly explained by lower sales prices = EBITDA of MNOK 345, down 54% from the second quarter last year = Explained by lower sales pri
Slide 20: Carbon Solutions
Carbon Solutions Stable results amid challenging market = Total operating income MNOK 854, down 15% from the second quarter last year = Lower operating income was mainly explained by lower sales volume and lower sales prices = EBITDA of MNOK 242, down 27% from the second quarter last year = Mainly e
Slide 21: Silicones – Under strategic review
Silicones ~ Under strategic review Continued EBITDA improvements due to stronger costs positions = Total operating income of MNOK 3 876, up 3% from the second quarter last year = Higher sales volume was partly countered by lower commodity sales prices = EBITDA of MNOK 247, significantly up from seco
Slide 22: Robust equity position - EPS negatively affected by Silicones
Robust equity position - EPS negatively affected by Silicones which is under strategic review "Earnings per share (EPS) amounted to NOK -0.49 in the second = Total equity amounted to BNOK 24.0 as at 30 June 2025, down quarter and NOK -0.82 year to date BNOK 2.1 from year-end 2024 = EPS was impacted
Slide 23: Good maturity profile
Good maturity profile = Net interest-bearing debt (NIBD) BNOK 11.4 as at 30 June 2025 = Leverage ratio of 2.8x based on LTM EBITDA of BNOK 4.1 Good financing position = Well distributed and managed maturity profile with low upcoming debt repayments = The interest cover ratio was 6.2x by end of secon
Slide 24: Low investments improving cash flow generation
Low investments improving cash flow generation "Cash flow from operations was MNOK 308 in the second quarter 2025 * Cash flow excluding Silicones was MNOK 323 in the quarter = Investments ex. M&A of MNOK 464 in the second quarter 2025 = Reinvestments MNOK 401, amounting to 65% of D&A = Strategic inv
Slide 25: Key take-aways
Key take-aways = Markets still characterised by uncertainty and geopolitical volatility. Elkem to focus on cash generation and disciplined capital spending * Silicon Products continues to face low demand but is well positioned due to strong cost and market positions. All furnaces in operation by the
Slide 26: 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 27: Appendix
Appendix
Slide 28: We are Elkem
We are Elkem Advanced silicon-based materials shaping a better and more sustainable future Silicones Silicon products Carbon solutions
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: Elkem's portfolio is well-balanced
Elkem’s portfolio is well-balanced ae a s w * ry . = all a an : _ mo / ¢ \ Ate y on) J \ f Ts = = Ls Gs i = Revenue split Revenue split c Sa By geography By division a4 Carbon Solutions P 10% f Silicones y J ; 46% « Asia an LDS EMEA & | ieeyy Americas Silicon Bo Products 44% @Elkem : 34
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: Foundry Alloys — global leader in 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 41: 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%) > 36,000 mt other specialty materials AEFRAT
Slide 42: 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 43: 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 44: Elkem
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