Elkem (ELK) DNB Small & Medium Enterprises Conference presentation summary

Business overview and strategy

• Focuses on advanced silicon-based materials, including silicones, silicon products, and carbon solutions for diverse applications such as wind turbines, solar, electronics, automotive, and infrastructure.

• Operates 31 production sites globally with approximately 7,200 employees and 550 R&D staff across Norway, France, and China.

• Strategic review initiated for the Silicones division to streamline the portfolio and accelerate growth in Silicon Products and Carbon Solutions.

• Revenue is geographically diversified, with about 60% from EMEA & Americas and 40% from Asia; business split is 46% Silicones, 44% Silicon Products, and 10% Carbon Solutions.

• Supplier of critical materials supporting green and digital transitions, with a strong ESG focus.

Financial performance

• FY 2024 total operating income was NOK 33.0 billion, with EBITDA of NOK 4.1 billion and a 13% EBITDA margin.

• 4Q 2024 operating income reached NOK 8,498 million, EBITDA NOK 1,161 million, and EBITDA margin 14%.

• Earnings per share for 2024 was NOK 0.77; proposed dividend is NOK 0.30 per share.

• Achieved an operating income CAGR of 8% over the cycle, with an average EBITDA margin of 17% and leverage ratio of 1.6x.

Market and operational highlights

• Silicones division saw improved profitability in 2024, with best results since Q3 2022 due to operational improvements and higher sales volumes.

• Silicon Products performed well but faced lower sales volume and weak ferrosilicon market; Carbon Solutions delivered strong results.

• Silicones market in China experienced weaker demand recovery, but DMC prices rose due to reduced production; EU and US markets impacted by seasonal factors and weak construction.

• EU silicon prices remain stable amid weak demand and capacity curtailments; German fiscal stimulus expected to benefit divisions.