Elkem Asa · OSL:ELK
Elkem Asa — Elkem Asa Ord — Q2 2026 Earnings Presentation
30 slides from Elkem Asa's earnings presentation, Jul 10, 2026
Slide 1: Second quarter results 2026
Second quarter results 2026
Slide 2: Agenda
Agenda Highlights & Market update Financial business update & outlook performance 01 02 03 2
Slide 3: Highlights & business update
Highlights & business update 3
Slide 4: Elkem's transformation is gaining real momentum
Elkem’s transformation is gaining real momentum, with the organisational streamlining completed, cost reductions exceeding target, and a successful refinancing concluded. We are pursuing strategic portfolio options while positioning for growth and margin improvements. Demand from digitalisation, AI
Slide 5: Driving cost improvements and deleveraging
Highlights Driving cost improvements and deleveraging ▪ Elkem’s transformation is ahead of target, with organisational streamlining completed and cost reductions progressing as planned ▪ Balance sheet strengthening measures complete, including NOK 1.8 billion in new equity and refinancing of main ba
Slide 6: Dag Teigland appointed CEO effective 3 August
New CEO Dag Teigland appointed CEO effective 3 rd August ▪ Dag Teigland appointed CEO, effective 3 August 2026 ▪ Helge Aasen transitions from CEO to chairman after 17 years leading Elkem ▪ Teigland brings extensive industrial, operational and investment experience, including previous leadership role
Slide 7: Strong ESG performance
Environmental, social and governance Safety Ambition: Zero injuries Strong ESG performance Sustainability targets Reduction in CO 2 ▪ Elkem maintains a strong focus on health and safety, with total the 25% emissions by 2030 injury rate improving . The ambition is zero injuries Reduction in CO 2 prod
Slide 8: Strengthened financial position following refinancing and equity raise
Financing update Strengthened financial position following successful refinancing and equity raise ▪ Elkem completed a NOK 1.8 billion equity raise in the second quarter. NOK 1.5 billion was placed on 6 May through a well -receive d bookbuilding process, followed by NOK 0.3 billion raised on 29 May
Slide 9: New long-term power contract entered on competitive terms
Cost position New long -term power contract entered on competitive terms ▪ Elkem and Statkraft signed a new long -term power purchase agreement in the second quarter of 2026 Share of electricity consumption hedged for plants in Norway ▪ The PPA is for the 2031 -2037 period, and the total contract vo
Slide 10: Cost reduction programme exceeding targets
Strategic update Cost reduction programme exceeding targets ▪ Elkem has implemented significant cost -reduction measures to improve productivity and maintain a competitive cost position. The programme is on track, exceeding target ▪ The initial target was to reduce the global workforce by approximat
Slide 11: Evaluating strategic options for Elkem Iceland
Strategic update Evaluating strategic options for Elkem Iceland to unlock new value opportunities ▪ Weak performance since 2024, driven by a structurally higher cost base versus other Elkem plants ▪ Reduced market access following EU safeguard measures, limiting tariff -free exports to Elkem Iceland
Slide 12: Maximising value from strategic industrial assets
Strategic update Maximising value from strategic industrial assets ▪ Elkem is assessing opportunities to create higher -value industrial ecosystems through energy efficiency, including heat recovery, and shared infrastructure ▪ Complementary data centre developments could strengthen industrial clust
Slide 13: Market update & outlook
Market update momen EF OUTLOOK
Slide 14: Mixed market conditions, but signs of growth
General markets Mixed market conditions, but signs of growth Automotive sector Construction market PMI Index ▪ Light vehicle (LV) production is expected to ▪ Overall construction activity remains mixed ▪ PMI serves as an early indicator of change in reach 90.7 million units in 2026, down 2.6% ▪ The
Slide 15: Policy tailwinds building to support European demand and reshoring
General markets Policy tailwinds building to support European demand and reshoring ▪ EU Industrial Accelerator Act (IAA) is a legislative proposal to strengthen the competitiveness, resilience, and decarbonization of European industry. It is expected to gradually support European demand, encourage r
Slide 16: Expected growth in EU steel production
General markets Expected growth in EU steel production – supportive to demand for Elkem’s products Crude steel production index –quarterly data. Base year 2021 ▪ Global steel demand appears to be bottoming out, but growth is expected to be modest in 2026. EU steel production showing signs of recover
Slide 17: Market reference prices remain low
EU and US - Silicon and Ferrosilicon Market reference prices remain low CRU silicon 99 price EU and US (EUR/mt) ▪ Silicon reference prices in EU increased by around 6% by the end of the second quarter as buyers switching to European supply ▪ In the US, silicon prices increased in the second quarter
Slide 18: Weak domestic demand affecting global markets
China – Silicon and Silicones Weak domestic demand affecting global markets Silicon 553 reference price CNY/mt ▪ Silicon metal prices in China remain close to historic lows due to over -expansion and substantially lower demand from polysilicon to the solar value chain from the second half of 2024 ▪
Slide 19: Outlook for the third quarter 2026
Outlook for the third quarter 2026 ▪ Trade regulations and protective measures expected to continue affecting Elkem’s markets, and could support a recovery in demand and prices in EU ▪ Elkem’s cost reduction programme will continue to contribute positively to the results from the third quarter and o
Slide 20: Financial performance
Financial performance 20 @Elkem
Slide 21: EBITDA hampered by still low silicon and ferrosilicon prices
Elkem Group EBITDA hampered by still low silicon and ferrosilicon prices Total operating income (MNOK) (1) EBITDA (MNOK) (1) Total operating income EBITDA down 19% down 4% from 2Q -2025 compared to 2Q -2025 Lower sales prices largely Lower EBITDA mainly compensated by higher explained by lower sales
Slide 22: Overview financial ratios
Consolidated key figures 1) Elkem Group (NOK million, except where specified) 2Q 2026 2Q 2025 YTD 2026 YTD 2025 FY 2025 Overview financial ratios Total operating income 3 708 3 864 7 369 7 693 14 966 EBITDA 523 645 839 1 369 2 566 2) EBIT 300 435 401 947 1 685 Other items (89) 75 (76) 126 262 Net fi
Slide 23: Silicon and ferrosilicon prices remain low
Total operating income (1) Silicon Products NOK million Silicon and ferrosilicon prices remain low EBITDA and margi (1) NOK million and % ▪ Total operating income was MNOK 2 946, down 4% from the second quarter last year ▪ The decline was mainly driven by lower sales prices for silicon, partly offse
Slide 24: Stable performance in weak markets
Total operating income Carbon Solutions NOK million Stable performance in weak markets EBITDA and margin NOK million and % ▪ Total operating income MNOK 741, down 13% from the second quarter last year ▪ Lower operating income was mainly explained by lower sales volume and lower average sales prices
Slide 25: Capital injections successfully completed
Elkem Group Capital injections successfully completed ▪ Earnings per share (EPS) was NOK (2.09) based on the current number ▪ Total equity amounted to BNOK 12.6 as at 30 June 2026 of issued shares, explained by fair value adjustment related to ▪ Equity to total assets (equity ratio) was 44% disconti
Slide 26: Debt reduction & refinancing strengthening financial position
Elkem Group Debt reduction & refinancing strengthening financial position ▪ Net interest -bearing debt (NIBD) BNOK 6.6 as at 30 June 2026 ▪ Well managed debt maturity profile ▪ NIBD was significantly down, driven by equity injections and ▪ New bank loan of MEUR 600 maturing in 2031 targeted working
Slide 27: Cash flow supported by improved working capital and low investments
Elkem Group Cash flow supported by improved working capital and low investments ▪ Cash flow from operations (1) of MNOK 733 in the second quarter 2026 ▪ Investments ex. M&A of MNOK 193 in the second quarter 2026 ▪ This represented a significant year -on-year improvement, supported ▪ Reinvestments MN
Slide 28: Key take-aways
Second quarter 2026 Key take -aways ▪ Elkem’s transformation is ahead of target. The organisational streamlining is complete, cost reductions are exceeding target, and deleveraging is well underway ▪ Elkem’s financial position is materially strengthened through successful capital raise of NOK 1.8 bi
Slide 29: 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 30: Elkem
«~ Elkem