Fourth quarter 2023 concludes a challenging year, signs of recovery

Oslo, 8 February 2024

Elkem's profitability in the fourth quarter 2023 was impacted by challenging
markets, but there are signs of recovery as commodity sales prices seem to have
bottomed out, and the internal improvement programmes are starting to take
effect.

Elkem's total operating income for the fourth quarter 2023 was NOK 8,436
million, which was up 7% from the third quarter 2023, explained by improved
performance in the Silicones division. Earnings before interest, taxes,
depreciation and amortisation (EBITDA) amounted to NOK 632 million in the
quarter, compared NOK 535 million in the third quarter 2023. Earnings per share
(EPS) was NOK -0.73 in the quarter and NOK 0.11 year-to-date. Due to the low
EPS, the board has proposed to the annual general meeting not to pay dividends
for 2023.

The result for the Silicones division clearly improved from a negative EBITDA
contribution in the third quarter 2023. The division delivered positive results
in challenging markets, helped by lower raw material costs, improved sales of
specialties, and positive effects from the internal improvement programmes. The
Silicon Products divisions' result declined compared to third quarter 2023,
mainly due to lower realised contract prices. In addition, the maintenance stop
in Iceland, and the fire at the Salten plant have negatively impacted the result
by NOK 85 million. The Carbon Solutions division delivered another strong result
despite a decline in sales volume in the quarter. The division delivered its
best full-year result ever.

"The macro-economic sentiment has been challenging in 2023, characterised by
high inflation, interest rate hikes, slow recovery in China, and geopolitical
uncertainties. The markets have also been impacted by Chinese exporters
discounting prices to get over a prolonged slump in demand. This has resulted in
weak demand and lower sales prices in Elkem's main markets and impacted the
results negatively. Despite the weaker results in 2023, Elkem is delivering on
its financial targets over the business cycle, based on strong top line growth,
good profitability, and a sound financial position," says Elkem CEO Helge Aasen.

Elkem's operating income for 2023 was NOK 35,545 million compared to NOK 45,898
million in 2022. The EBITDA for 2023 was NOK 3,771 million compared to NOK
12,925 million in 2022.

Elkem has introduced a comprehensive improvement programme to counter the weak
market conditions, particularly in Silicones. The target is to improve EBITDA by
at least NOK 1.5 billion and to reduce capital expenditures by NOK 2.0 billion
compared to 2023.

"Elkem celebrates its 120 years anniversary in 2024, having grown from being an
industrial start-up into a position as one of the world's leading providers of
advanced silicon-based materials. Our focus is always on the future - with more
than 600 researchers around the world innovating to create new solutions for the
green transition, digitalisation and other global megatrends," adds Aasen.

On 6 February 2024, Elkem was rated by CDP - the global environmental disclosure
nonprofit - among the world's top performing companies in environmental
transparency and performance on climate change (A- rating), deforestation (A)
and water security (A-). For Elkem, sustainability is central to our business
strategy. We will continue these efforts as we position for dual-play growth and
green leadership.

A fire broke out at the Salten plant in Norway on 10 December 2023. The fire
started in a building housing raw materials, including carbon materials. The
fire was under control and mostly extinguished within 24 hours. No people were
injured. One of the plant's three furnaces was restarted on 29 January 2024. We
will come back with information when the two other furnaces are expected to
restart production.

In January 2024, Elkem signed an agreement to acquire REC Solar Norway AS from
REC Solar Holdings AS, a subsidiary of Reliance Industries. This transaction
will give Elkem control of industrial areas and facilities in Norway, including
areas next to Elkem's activities at Fiskaa in Kristiansand. This will give Elkem
the opportunity to gain local synergies and further develop the Fiskaa site,
which will be important for our research activities in Kristiansand.

The group's equity as at 31 December 2023 amounted to NOK 24,458 million, which
gave a ratio of equity to total assets of 48%. Net interest-bearing debt was NOK
9,450 million, which gave a ratio of net interest-bearing debt to EBITDA of
2.5x. Elkem had cash and cash equivalents of NOK 6,367 million as at 31 December
2023, and undrawn credit lines of more than NOK 6,000 million.

In December 2023, Scope affirmed its BBB issuer rating of Elkem ASA and changed
the outlook from stable to negative. The affirmed investment grade rating
reflects Elkem's sound financial policy, strong cost position, good global
footprint, and integrated position in the silicone industry. The change in
outlook reflects the deterioration in revenue and profitability in 2023 and the
prospects of a prolonged economic slowdown in the company's main markets.

Markets are still challenging going into the first quarter 2024. Elkem is
focusing on extraordinary EBITDA improvements to counter weak demand, especially
in Silicones. The Silicones markets are expected to remain challenging in the
first quarter. The demand in China is expected to improve, but overcapacity will
still be an issue, keeping sales prices under pressure. Sale of specialties
could improve as destocking comes to an end. The Silicon Products division will
see some effects of rising market prices for silicon and ferrosilicon, but this
is partly offset by lower prices on specialties. There will be limited negative
EBITDA impact from the delayed start-up in Iceland and the stop at Salten.
Continued slow market conditions expected for Carbon Solutions, but Elkem is
benefitting from strong market positions.

For further information, please contact:
Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: [phone]
Email: [e-mail]

Fredrik Norman
VP Corporate Communications & Public Affairs
Tel: [phone]
E-mail: [e-mail]

About Elkem
Elkem is one of the world's leading providers of advanced silicon-based
materials 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
7,400 people has a joint commitment to stakeholders: Delivering your potential.
In 2023, Elkem achieved an operating income of NOK 35.5 billion and CDP ratings
of A on Forests, and A- on Climate Change and Water Security. Elkem is listed on
the Oslo Stock Exchange (ticker: ELK), where the company is also included in the
ESG Index. www.elkem.com

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