Elkem Asa · OSL:ELK
Elkem Asa — Non-Deal Roadshow (December 2019)
15 slides from Elkem Asa's roadshow presentation, Dec 5, 2019
Slide 1: Elkem ASA DNB group lunch
Elkem ASA DNB group lunch 5 December 2019
Slide 2: Michael Koenig CEO from 1 December
Michael Koenig CEO from 1 December Michael Koenig assumed the position of CEO from 1 December 2019 CEO of China National Bluestar since January 2016 Chairman of the board of Elkem ASA since 2016 Extensive professional experience through various positions prior to joining Bluestar, including
Slide 3: Robust results …
Robust results … Total operating income down 5% but holding up relatively good Elkem delivers robust results in a challenging market environment EBITDA down 54% vs. third quarter last Total operating income was NOK 5,540 million in third quarter 2019 year mainly due to lower prices EBITDA was
Slide 4: … in challenging markets
… in challenging DMC reference price China (RMB/mt) markets CRU silicon 99 price EU (EUR/mt) Silicones DMC prices in China recovered in third quarter supported by seasonal upturn in Chinese construction market and disciplined capacity utilisation The DMC prices declined shortly before the Chin
Slide 5: Competitive strengths
Competitive strengths Elkem has strong markets positions, a fully integrated value chain and a strong financial position The strategy is to capitalise on competitive strengths to ensure profitable growth The goal is to improve and stabilise Elkem’s financial results through cost efficiencies,
Slide 6: Strategic building blocks
Strategic building blocks Continuous improvement to ensure cost competitiveness Leverage on integrated value chain and take out synergies Buliding blocks of continued profitable growth Growth through specialisation, organic growth and acquisitions Further specialisation to improve and stabil
Slide 7: Continue developing of our strong business areas
Continue developing of our strong business areas Silicones Silicon Materials Foundry Products Carbon BNOK 13.1 BNOK 6.6 BNOK 5.1 BNOK 1.9 50% of 23% of 20% of 7% of group sales group sales group sales group sales End-markets End-markets End-markets End-markets Paper & Film Release Chemicals Au
Slide 8: Integrated value chain & attractive end-markets provide a solid basis for future development
Integrated value chain & attractive end-markets provide a solid basis for future development Low cost sustainable input factors High temperature/chemical production processes Examples of high value applications and markets Quartz Silicon and microsilica Windmills Infrastructure Airbags Coal Silicone
Slide 9: ESG Sustainability
ESG Sustainability Elkem has a zero harm philosophy Sustainable and renewable energy For health and safety, the target is zero recordable injuries All plants outside China run on hydro power For environment, the strategy is to work towards our goal of zero emissions Energy recovery at seve
Slide 10: Leader in attractive markets
Leader in attractive markets Elkem is the largest silicones producers in China Silicones to electric vehicles Strong position in growing EV market Elkem has leading positions in silicon metal and ferrosilicon outside China Elkem’s is the only true global player in the carbon products segment
Slide 11: Strong presence in major growth markets
Strong presence in major growth markets The global demand for silicones is expected grow by 5% CAGR from 2018 to 2023 60% of the growth is expected in China, India and rest of Asia Silicones - demand forecast Elkem is expanding its silicones offering in the Americas Elkem is gaining specialt
Slide 12: Integrated value chain and low cost positions
Integrated value chain and low cost positions Accelerated improvement programme Integrated value chain from quartz to highly specialised silicones Accelerated improvement Leading cost positions programme initiated to counter weaker market conditions Low cost positions in silicon metal and fe
Slide 13: R&D capabilities for further specialisation
R&D capabilities for further specialisation Strong focus on further specialisation through R&D and bolt-on acquisitions R&D centres Significant opportunities in specialised products for battery insulation and Elkem has 13 innovation centres with > 400 R&D high quality rubber for cables in elec
Slide 14: Strong financial position
Strong financial position Strong equity Total equity was BNOK 13.0 as at 30 September 2019 Target metric Targets Comment Equity ratio of 44% Grow faster than market through Revenue growth 5 – 10% specialisation, organic growth and acquisitions Target average margin through the EBITDA margin (%)
Slide 15: Elkem
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