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

Strategic transformation and portfolio evolution

• Over 120 years of industrial history with significant international growth and strategic acquisitions, including recent purchase of VUM in Slovakia and divestment of the Silicones division to Bluestar.

• Sale of the Silicones division enables minority investors to assume full control, with Elkem remaining listed on the Oslo Stock Exchange.

• New corporate structure focuses on three divisions: Silicon, Foundry Alloys, and Carbon.

Market environment and trade dynamics

• EU implemented safeguard measures on ferrosilicon and foundry alloys, raising prices and protecting internal production; Norway and Iceland not exempted.

• US imposed countervailing and anti-dumping duties on silicon imports, resulting in a total tariff of 41% on Norwegian exports.

• Market conditions remain challenging with weak demand in the EU and stable but expected rising prices in the US.

• Geopolitical tensions, including the Middle East conflict, have increased macroeconomic uncertainty and impacted value chains.

Financial performance and cost initiatives

• Operating income CAGR of 5% and EBITDA margin of 16% over the cycle, meeting targets despite industry downturn.

• Excluding Silicones, operating income CAGR is 6% and EBITDA margin is 21%.

• Significant cost-cutting measures underway, including a 10% workforce reduction and NOK 1.3 billion in working capital and capex improvements.

• Estimated cost reductions of NOK 0.6 billion, with half realized by year-end 2026; investments capped at NOK 1.0 billion.