Elkem — Capital/Financing Update 2020

Mar 3, 2020

Elkem ASA initiates new productivity improvement programme

Elkem ASA initiates new productivity improvement programme

Oslo, 3 March 2020

Elkem has decided to implement a new global productivity improvement programme

to improve the company's cost position and streamline the organisation as a

basis for future growth and specialisation.

Elkem's profitability is currently below the company's financial targets. In

addition, the market outlook is uncertain.

"Corrective actions are expected and needed. Our aim is to improve Elkem's

profitability to fund future growth and specialisation in line with our long

-term strategy. With these measures, I am very confident that Elkem will

continue to deliver on our ambitions and grasp the opportunities that lie

ahead," says Michael Koenig, Elkem's CEO.

Elkem has identified a potential of more than NOK 350 million in annual

improvements from the programme. The company expects positive EBITDA

contributions from early 2021 and the full potential to be realised from the end

of 2021.

Restructuring costs are expected to be around NOK 200 million, which will be

taken as a provision in Other items in Q1 2020.

The productivity improvements will be achieved mainly through planned reductions

of personnel cost. It is too early to estimate how many full-time equivalents

will be affected. The programme is being implemented in close dialogue with

employee representatives and in compliance with local labour laws.

Elkem will prioritise reducing external contractors and using normal attrition.

The company is addressing all divisions, as well as the corporate functions,

across all 29 global locations. The programme will be finalised by the end of

For further information:

Odd-Geir Lyngstad, VP Finance & Investor Relations

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.no

Fredrik Norman, VP Corporate Communications & Public Affairs

Tel: +47 918 66 567

Email: fredrik.norman@elkem.no

About Elkem

Founded in 1904, Elkem is one of the world's leading suppliers of silicon-based

advanced materials with operations throughout the value chain from quartz to

specialty silicones, as well as attractive market positions in specialty

ferrosilicon alloys and carbon materials. Elkem is a publicly listed company on

the Oslo Stock Exchange (ticker code: ELK) and is headquartered in Oslo. The

company has more than 6,300 employees with 29 production sites and an extensive

network of sales offices worldwide. In 2018 Elkem had revenues of NOK 25.9

billion. To learn more, please visit www.elkem.com