Elkem (ELK) SEB Nordic Seminar presentation summary

Company overview and strategy

• Operates globally with ~7,200 employees and NOK ~33 billion in 2024 revenues.

• Structured into three divisions: Silicones, Silicon Products, and Carbon Solutions, each with global leadership.

• Initiated a strategic review to sell the Silicones division, aiming to focus on Silicon Products and Carbon Solutions.

• Over 120 years of industrial history rooted in Norwegian expertise and renewable energy use.

• Strong cost position due to operational excellence, upstream integration, and long-term renewable energy agreements.

Market environment and performance

• EU and US trade barriers impact silicon and ferrosilicon markets, with new duties and quotas affecting pricing.

• Ferrosilicon prices in the EU rose ~25% after safeguard measures, while silicon prices remain low due to weak demand.

• Silicones market in China saw a 23% price increase in Q4 2025 due to production cuts, but demand remains weak.

• Increased infrastructure and defense spending in Europe and NATO expected to boost demand for silicon and ferroalloys.

• Silicon is critical for strategic industries including electronics, healthcare, construction, and defense.

Financial highlights and investment case

• Q3 results supported by operational performance and cost improvements despite low sales prices.

• Operating income CAGR of 8% and EBITDA margin of 17% (2020–2024), exceeding targets; ex-Silicones, CAGR is 11% and EBITDA margin 23%.

• Carbon Solutions delivered strong margins; Silicones stable due to improved cost and market positions.

• Strategic review and exclusive sales process for Silicones division progressing, with expected closing in H1 2026.

• Positioned as a global leader in advanced silicon-based materials, with a resilient, geographically diverse business model and strong ESG focus.