Elkem

Earnings Release • Mar 16, 2022

Elkem ASA - Annual report for 2021

Elkem ASA - Annual report for 2021

Oslo, 16 March 2022

Elkem ASA has today published its annual report, including the ESG report,

for the financial year ended 31 December 2021.

In his letter to shareholders, Elkem's CEO Helge Aasen writes: "The economic

downturn in 2020 was followed by an extraordinary market momentum in 2021,

enabling Elkem to deliver record-high revenues and results. Several global

trends will drive demand for Elkem's products and hence increase our

contributions to a sustainable future. We remain well positioned for growth with

the green shift, digitalisation and a rising global middle class."

In 2021, Elkem delivered a total operating income of NOK 33,717 million, up 37%

from NOK 24,691 million in 2020. Earnings before interest, taxes, depreciation

and amortisation (EBITDA) amounted to NOK 7,791 million, an increase of 190%

from 2020.

The proposed dividend for 2021, subject to approval from the annual general

meeting in 2022, is NOK 3.00 per share, representing 41% of profit for the

period. This is within Elkem's target dividend pay-out ratio of 30-50%.

The strong results in 2021 were explained by good market conditions in

combination with Elkem's strong competitive position. Elkem's business model is

providing a solid basis for continued strong results also in 2022. "We continue

to see a strong demand for Elkem's products also into the beginning of this

year," adds Aasen. "We have increased prices for specialty products, while

market reference prices for standard products have stayed at very attractive

levels in the first quarter," he says.

Elkem does not have any plants or own employees in Ukraine or Russia. These

countries account for very limited parts of Elkem's business.

"ESG (Environment, Social and Governance) factors are increasingly important for

our key stakeholders. An important step was made in October when Elkem announced

a new global climate roadmap. Another new milestone was reached when we received

an A- rating from CDP, ranking among the world's leading companies on climate

transparency and action. 2022 has also started well, with a Platinum rating on

sustainability transparency from EcoVadis, positioning Elkem among the top 1% of

the companies evaluated worldwide," says Aasen.

"We have a vision in Elkem to provide advanced material solutions shaping the

future. Our corporate strategy is to grow and strengthen our competitive

positions through operational excellence and increased specialisation. I would

like to thank all our Elkem colleagues and stakeholders for their remarkable

efforts and support throughout a record year. We have delivered strong results

while also positioning for the future. And we have all the ingredients in place

to make 2022 another successful year for Elkem while remaining mindful of a very

dynamic and unpredictable external environment," he adds.

The annual report will be available on Elkem's website: www.elkem.com.

For further information, please contact:

Odd-Geir Lyngstad

VP Finance & Investor Relations

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.com

Fredrik Norman

VP Corporate Communications & Public Affairs

Tel: +47 918 66 567

E-mail: fredrik.norman@elkem.com

About Elkem

Elkem is one of the world's leading providers of advanced material solutions

shaping a better and more sustainable future. The company develops silicones,

silicon products and carbon solutions by combining natural raw materials,

renewable energy and human ingenuity. Elkem helps its customers create and

improve essential innovations like electric mobility, digital communications,

health and personal care as well as smarter and more sustainable cities. With a

strong track record since 1904, its global team of more than 7,000 people has a

joint commitment to stakeholders: Delivering your potential. In 2021, Elkem

obtained a Platinum score from EcoVadis, which rated the company among the

world's top 1% on sustainability transparency, and the company achieved an

operating income of NOK 33.7 billion. Elkem is listed on the Oslo Stock Exchange

(ticker: ELK). www.elkem.com