Elkem

Investor Presentation • Oct 26, 2022

26 October 2022

Helge Aasen 26 October 2022 Our main message

Elkem's strategy	→ Dual-play growth and green leadership → Balanced across geographies and products
Financial performance	→ Strong results, attractive dividend policy → Profitability driven by strong market positions
Silicon Products	→ Low cost positions → Favourable industry dynamics
Silicones	→ Attractive growth potential → Focus on specialisation and innovation
Green Ventures	→ Value creation based on technological expertise → Solutions for the green transition

Global economy: China growing faster than western world but re-industrialisation in the West

Green transition: Focus on sustainability with electrification of transportation accelerating

Geopolitical polarisation: Trade barriers creating opportunities for dual-play providers

Industry dynamics: Underlying growth supported by industry maturity and innovation

°

• By 2031: Reducing absolute emissions* by 28% from 2020- 2031 while growing the business – delivering 39% improvement in product footprint**

• By 2050: Achieving fully carbon neutral production (zero fossil emissions) globally

• Grow supplies of advanced materials to green markets such as better buildings, electric vehicles and renewable energy

• Build new business in green markets such as battery materials, biomass and energy recovery

• Increase recycling in our own operations

• Increase recycling with our customers
• Develop the eco-design of innovative products

→ → → → → → → → → Silicones Silicon products Carbon solutions Dual-play growth → Balanced between geographic regions (East & West) → Balanced across the value chain (Upstream & Downstream) Green leadership → Strengthening position as best in the industry on low CO² → Growing supplies to green transition & creating green ventures

Inge Grubben-Strømnes 26 October 2022

• → Four business lines: Silicon, ferrosilicon, foundry alloys and microsilica
• → End markets driven by electrification, renewable energy, digitalisation and increased standard of living
• → Low cost commodity positions based on scale and operational excellence with improved long term outlook due to the energy situation and underlying growth and developments in China
• → Strong market positions in specialty niches based on production platform, deep application knowledge and close customer relationships

of division's sales

→ Commodity with index linked prices

Construction

Automotive

Renewable energy

Electronics

* Of which 50.000 mt at Yongdeng plant (internal supplier to Elkem Xinghuo) reported in Elkem Silicones

** Split of silicon revenues by segment – companies named are examples and not necessarily customers

of division's sales

of division's sales

* Companies named are examples and not necessarily customers

• → Global market leader with local presence
• → Negotiated prices

* Split of microsilica/ materials revenues by segment – companies named are examples and not necessarily customers

of division's sales

Raw materials			Plants		Customers		End markets
	→ Low cost hydro power		→ Operational excellence and economies		→ Strong brand and long-term
			of scale		relationships
			→ Low carbon footprint		→ Deep application knowledge, patents
			installed)		→ Security of supply and ability to
			microsilica		→ # 1 markets positions in foundry alloys,
	→ Captive electrodes				microsilica and high purity grades
	broad supplier base		→ Market access/ proximity
		→ Captive quartz mines → In-house biocarbon development → CO2 quotas covering 75% of ETS → Long term relationships and → Global sourcing team with strong presence in China		→ Energy recovery (up to 30% of where → Attractive product mix and high value → Attractive locations/ logistics		and technical Customer Support complement with external sourcing

• → Operational excellence and economies of scale
• → Low carbon footprint
• → Energy recovery (up to 30% of where installed)
• → Attractive product mix and high value microsilica
• → Attractive locations/ logistics

• → Market access/ proximity

• → Strong brand and long-term relationships

• → Deep application knowledge, patents and technical Customer Support
• → Security of supply and ability to complement with external sourcing

• → # 1 markets positions in foundry alloys, microsilica and high purity grades

• → Well positioned to benefit from higher sustainability requirements

• → Delivering high quality materials to the green transition
• → Reliable producer serving demanding customer requirements
• → Strong long-term relationships with leading industry players

Elkem position

• → Norway long-term contracts in liquid market, short/medium term hedging ratio > 85%
• → Attractive locations and area pricing
• → CO² compensation
• → Iceland long-term contract
• → Canada captive hydro power combined with public industrial tariffs
• → Paraguay industrial tariffs

Silicon Products - Competitive strengths

→China's silicon production established as low-cost exports

• →Domestic demand is increasing due to solar, silicones and aluminium
• →Production costs are increasing
• →Higher energy cost due to scarcity, strong demand and more imports
• →Stricter environmental regulations (local emissions and CO² )
• →General cost level increasing due to higher standard of living

• →Exports of silicon and ferrosilicon likely to decrease with price expected to increase

• →Suppling materials to markets supported by strong megatrends

• →Low cost positions based on operational excellence, economies of scale and long-term competitive renewable energy
• →Strong market positions in specialty niches
• →Focus on maintaining leading cost positions, reduce carbon emissions, optimize product mix and evaluate capacity expansions
• →Well positioned for profitable growth through M&A or brownfield expansions

Sophie Schneider 26 October 2022

Silicones – highlights

Silicones bring unparalleled properties and performances to materials, which are essential in multiple industries. Light weighting

Thermal management Electronic assembly Circuit protection

Long-term reliability (weather, UV) Nonflammable materials High temperature operations

Battery thermal management Electrical & fire safety

Biocompatible materials for temporary or permanent implants and prothesis

Properties retention at temperatures beyond the limits of organic chemistry

Long-lasting, weather-proof adhesives and sealants for energy efficient glass façades

• → 5 global integrated players + emerging Chinese local players
• → Total market size is ~ 16 BUSD
• → 8.5% Elkem market share in 2020

N°4 in Europe and APAC N°2 in Central & South America

• → Silicone demand global annual growth rate expected around +7% for the coming years with strong growth in APAC and Europe

• → Faster growth in specific markets: transportation, electronics, healthcare

• → Due to their benefits and widespread presence in consumer society, silicones consumption grows as GDP per capita rises.

• → The use of silicones and related products reduces the carbon footprint of many essential products and services.
• → In addition, Elkem's Silicone division has plans and commitments to reduce carbon emissions by 28% by 2031, in alignment to Elkem's carbon roadmap.

For every ton of C02 emitted for their production and during end-of-life disposal, the use of silicones allows for 9 times greater GHG emissions savings.

Data : CES - Silicon-Chemistry Carbon Balance An assessment of Greenhouse Gas Emissions and Reductions

Rising middle class	Digitalisation	Ageing population	Mobility	Decarbonisation
Industry players	Industry players	Industry players	Industry players	Industry players

≈25% of global sales with NEW products <5 years

17 product innovations

→ Invest in innovation capabilities 2 new global R&D centers

Delivered a series of product innovations for electric mobility over the past 3 years:

BLUESIL ™EV SEAL 60 L RED EV battery pack sealing solution

BLUESIL™LSR 393X/30 Harness connector sealing

BLUESIL™MF 8165 E/FSR EV battery cables

BLUESIL™ESA 6118 A/B EV electronic modules potting

AmSil™ & AmSil Silbione™

Combine the advantages of silicones durability and biocompatibility with the unique possibilities offered by 3D printing for healthcare and industrial applications.

ATRiON Lyon New R&I center, France Start-up: 2021

ATRiON Shanghai New R&I center, China Start-up: 2023

BLUESIL™ RT Foam

Breakthrough synthetic foam for battery packspotting, combining thermal insulation, fire safety lightweighting, & physical protection of the cells.

Circularity - Project REPOS

Collaborative project to develop a silicone depolymerisationbusiness model for offspec material, delivering waste reduction & 65% lower carbon footprint silicones.

Invest in specialty capabilities & technology

Asia: Acquisitions of POLYSIL, China (2019) and BASEL Chemie, S. Korea (2020)

Europe: OFS specialty silicones plant acquisition, France (2021)

U.S.: Medical implantable silicones plant (2022)

Guangdong, China, 2019 South Korea, 2020

BASEL acquisition

Value growth

Specialisation impact

= 2x Volume

growth

• → Landmark investments underway on upstream capacity on both Elkem's Eastern & Western silicone manufacturing chains
• → Build a competitive upstream capacity supporting downstream expansion by 2024
• → Upstream additional capacity consumed by downstream internal projects with a dynamic portfolio till 2024 under validation & maturation

Capacity increase: +25% / +20 ktpa Start-up: H2 2023 2025: 100 ktpa (full capacity) ≈360 MNOK EBITDA Margin >20%

Capacity increase: +50% / +117 ktpa Start-up: H1 2024 2026: >350 ktpa (full capacity) ≈3,800 MNOK EBITDA Margin >35%

• → Specialise our portfolio through differentiation in order to increase and stabilise margins through the cycle
• → 2 new global innovation centres
• → Invest in specialty manufacturing capabilities and technologies
• → >16 product innovations per year,
• → ≈25% global sales from products < 5 years
• → Dynamic & value-based digital pricing to maximise portfolio value

Specialisation Competitiveness and scale

• → Improve profitability through operational excellence and scale
• → Ongoing upstream capacity expansion projects to reduce production costs
• → Eastern: +50% (>350 ktpa) upstream in Xinghuo, China
• → Western: +25% (100 ktpa ) upstream in Roussillon, France

New innovation center ATRiON in Shanghai Due to start in 2023

New medical grade silicones plant in York, South Carolina, U.S.

Started in 2022

Asbjørn R. Søvik 26 October 2022

Vianode business case in brief

Targeting high growth markets with significant regional undersupply and regulatory push for sustainability and localisation.

Highly-efficient and automated production process based on proprietary technology leading to strong competitive position.

Close to zero CO² foot-print supporting the focus for sustainability

Efficient supply chain and logistics in close proximity to suppliers and customers, ensuring security of supply

Longer term contracts with major customers in the industry. Vianode's development backed by strong partners (Elkem, Hydro and Altor).

Vianode in the value chain

Source: Benchmark Mineral Intelligence, Elkem analysis

Green Ventures – Vianode

• → Several partnerships have been established and industry structure is under development
• → Long term contracts are normal in the industry (due to critical materials, long qualification periods and high cost of change)

"EU Critical Raw Materials Act (CRMA)"

→ The CRMA's objective is to develop a sustainable supply of raw materials needed to reach EU climate neutrality ambitions

"US Inflation Reduction Act (IRA)"

→ IRA's intention is to develop alternative north American locally sourced battery supply chain

• • → Increasingly attractive to for OEMS and battery cell producers to source from local sustainable battery raw materials suppliers in EU and North America.

• → These new regulatory frameworks could result in price premiums for locally produced anode material in the EU and North America.

• Key characteristics:

• → Faster charging
• → Increased range
• → Long service life and recyclable
• → Increased safety
• → Vianode offers a wide range of materials for Li-ion batteries within EV and ESS

Fast charge capability

Green Ventures – Vianode

Technology (closed system) with:

→ High yields

→ Low energy consumption

→ Low emissions

Green Ventures – Vianode

	→ → →
	→ → → →
	→ →
	→ →
→ →	A leading producer of advanced battery materials in growing EV and ESS markets in Europe & North America Annual revenue 1.5 -2.0 BUSD

• → Accelerate market access through supplying qualification volumes
• → Prepare a solid base for the next financing and reach bankability
• → Gain production experience in full scale equipment
• → Establish standard operating procedures for an accelerated ramp-up of the large-scale plant

Elkem biocarbon business in brief

Significant undersupply of Biocarbon to metallurgical markets. Elkem requires a minimum 200-250.000 mt of biocarbon by 2030.

Based upon technological advancements and process know how from operating smelters.

CO² neutral foot-print, based on waste biomaterial from sustainable forests and saw-mills.

Competitive cost vs. fossil sources (adjusted for CO2 cost) Targeting internal volumes initially, evaluating to expand business with partners internationally. And when timing is right; potential sell down.

Elkem Biocarbon in value chain

but significant undersupply requires multiple projects

Supply of biocarbon not even close to cover demand

• → CO² from coal constitutes 40% of total CO² emissions – in 2021, the Europe coal consumption rose by 11.9%
• → Biocarbon is today the only known CO² neutral replacement for coal
• → Demand of coal for metallurgical purposes above 50 million MT per year in Europe, while current European Biocarbon production estimated to 20 000 MT

Elkem pursuing parallel tracks for biocarbon development

• → Developing suppliers internationally
• → Cooperation with Vow Green Metals biocarbon production at Follum
• → Continuous evaluation of new suppliers/projects
• → Developing own technology
• → Starting an industrial pilot in Canada end 2022
• → Supply a big share of internal demand and external markets

First large-scale plant planned for in 2025

	→ All process steps → Industrial environment → Located at Chicoutimi (Canada)	In start-up	Up to 4000 tonnes per year	→ Qualify product and accelerate market access → Verify technology → Gain production experience in large scale pilot
	→ Full scale production located in Quebec (Canada) → Investment of MUSD ~120 (before grants)	Operational from 2025	~ 55,000 tonnes per year
→		By 2030	TBD tonnes per year

Green Ventures

• →Opportunities with a green profile and focus on value creation
• →Based on Elkem technology and process knowledge
• →With partners to realise scale, achieve synergies or mitigate risk
• →When attractive sell-down or possible IPO to realise value

Delivering your potential