Elkem (ELK) SEB Nordic Seminar presentation summary

Business overview and strategy

• Operates in advanced silicon-based materials, focusing on silicones, silicon products, and carbon solutions.

• Emphasizes sustainable business practices and low-cost input factors.

• Strategic focus on profitable and sustainable growth, green leadership, and supply chain resilience.

• Well-positioned to handle global trade tensions through regional value chains.

• Strong ESG focus and geographically diverse operations.

Financial performance and targets

• Achieved operating income CAGR of 13% from 2020 to 2023, surpassing the >5% target.

• Maintained an average EBITDA margin of 18%, within the 15-20% target range.

• EBITDA for FY 2023 was NOK 3.8 billion, with total operating income of NOK 35.5 billion.

• Cash flow from operations averaged NOK 4.5 billion over 2020-2023.

• Leverage ratio averaged 1.6x, within the 1.0-2.0x target.

Recent results and operational highlights

• Q3 2024 EBITDA reached NOK 1,235 million, the highest since Q1 2023.

• Silicones division drove EBITDA improvement through higher sales volumes and operational gains.

• Carbon Solutions continued to deliver strong results despite low sales volumes.

• New bond loans of NOK 1,500 million raised in September 2024.

• EBITDA improvement programme delivered BNOK 1.0 YTD and is expected to reach BNOK 1.4 for FY 2024.