Elkem (ELK) JP Morgan European Chemicals Forum presentation summary

Strategic transformation and sale of Silicones division

• Announced sale of the majority of the Silicones division to Bluestar, settled via redemption of Bluestar's 52.9% shareholding, with no cash payment involved.

• Minority investors will assume 100% control, and a new board will be instated post-transaction.

• The transaction aims to enhance growth in metals and materials divisions and aligns with long-term strategic goals.

• Sale excludes Silicones assets in Yongdeng, Roussillon, and India.

• Pre-commitments secured for a MNOK 1,500 equity capital raise to support the new structure.

Market and operational update

• Weak demand persists in key markets, with automotive and construction sectors showing mixed recovery signals.

• EU and US trade barriers have increased, impacting silicon and ferrosilicon prices and market access.

• Silicon prices in the EU have declined, while US prices are stable and expected to rise due to tariffs.

• Carbon and Silicones markets face regional challenges, but cost improvements and price recovery in China support profitability.

Financial performance and expectations

• 4Q 2025 operating income was MNOK 3,961 (excluding Silicones), with an EBITDA margin of 12%.

• Including Silicones, total operating income was MNOK 7,284, with EBITDA of MNOK 890.

• Group EBITDA margin averaged 16% over the cycle, exceeding targets when excluding Silicones.

• EPS for 2025 was negative, impacted by Silicones losses; no dividend proposed for 2025.

• Net interest-bearing debt at year-end 2025 was BNOK 11.9, with a leverage ratio of 3.5x.