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"f11867": {
"value": "1. General information Elkem ASA is a limited liability company located in Norway
\nand whose shares are publicly traded on Oslo B\u00f8rs. Elkem
\nASA is owned 52.9% by Bluestar Elkem International Co. Ltd
\nS.A., Luxembourg, which is under the control of Sinochem
\nHoldings Co., Ltd (Sinochem), a company registered and
\ndomiciled in China.
\nElkem is one of the world\u2019s leading providers of advanced
\nmaterial solutions shaping a better and more sustainable
\nfuture. The company develops silicones, silicon products
\nand carbon solutions by combining natural raw materials,
\nrenewable energy and human ingenuity. Elkem helps its
\ncustomers create and improve essential innovations like
\nelectric mobility, digital communications, health and personal
\ncare as well as smarter and more sustainable cities. With
\na strong track record since 1904, its global team of more
\nthan 7,000 people has a joint commitment to stakeholders:
\nDelivering your potential. In 2022, Elkem achieved an operating
\nincome of NOK 45,898 million.
\nThe consolidated \ufb01nancial statements for Elkem ASA
\n(hereafter Elkem/the group), including notes, for the year 2022
\nwere authorised for issue by the Board of Directors of Elkem
\nASA on 8 March 2023.
\n2. Basis for preparing the consolidated \ufb01nancial statements
\nCompliance
\nThe consolidated \ufb01nancial statements are prepared and in
\naccordance with International Financial Reporting Standards
\n(IFRS) as endorsed by the European Union (EU) and e\ufb00ective
\nat 31 December 2022. All accounting policies are used
\nconsistently by all subsidiaries in the consolidated \ufb01nancial
\nstatement. Relevant \ufb01nancial reporting principles are described
\nin each note to the consolidated \ufb01nancial statements.
\nPreparation of consolidated \ufb01nancial statements
\nThe consolidated \ufb01nancial statements are prepared on a
\nhistorical cost basis, with the exception of derivative \ufb01nancial
\ninstruments and other \ufb01nancial assets measured at fair value.
\nThe presentation currency of Elkem is Norwegian Krone
\n(NOK). All \ufb01nancial information is presented in NOK million,
\nunless otherwise stated. As a result of rounding adjustments,
\nthe amounts shown in one or more rows and columns
\nincluded in the consolidated \ufb01nancial statements, may not
\nadd up to the total.
\nIn text, the current year's \ufb01gures are presented outside
\nparentheses, followed by the comparative \ufb01gures presented
\nin parentheses.
\nThe consolidated \ufb01nancial statements have been prepared
\nbased on the going concern assumption.
\nForeign currency translation
\nEach entity in the group determines its functional currency
\nbased on the economic environment in which it operates,
\nand items included in the \ufb01nancial statements of each entity
\nare measured using that functional currency. When preparing
\nthe \ufb01nancial statements of each individual group entity,
\ntransactions in currencies other than the entity's functional
\ncurrency are recognised in the functional currency, using the
\ntransaction date\u2019s currency rate.
\nMonetary items denominated in foreign currencies are
\ntranslated to each entity's functional currency using the
\nclosing rate at the end of the reporting period, and any gains
\n(losses) are reported in the statement of pro\ufb01t or loss. Non-
\nmonetary items that are measured at fair value in a foreign
\ncurrency are translated using the exchange rate at the date
\nwhen the fair value was measured. Currency gains (losses)
\nrelated to operating activities, i.e. receivables, payables, bank
\naccounts for operating purposes including current intragroup
\nbalances, are recognised as a part of other items. Currency
\ne\ufb00ects recognised in \ufb01nance income and expenses are only
\nrelated to \ufb01nancing activities such as loans, lease liabilities,
\nlong-term placements and dividends.
\nForeign currency di\ufb00erences are recognised in other
\ncomprehensive income for the following items:
\n\u2192
a \ufb01nancial asset or liability designated as a hedging
\ninstrument in a cash \ufb02ow hedge, to the extent that the
\nhedge is e\ufb00ective
\n\u2192
loans in foreign currencies designated as hedging
\ninstruments in a hedge of a net investment in a
\nforeign operation
\nIn consolidation of the statement of pro\ufb01t or loss and the
\nstatement of \ufb01nancial position, separate group entities with
\nother functional currency than the group's presentation
\ncurrency, are translated directly into the presentation
\ncurrency as follows:
\n\u2192
Assets and liabilities are translated using the exchange
\nrate at the end of the reporting period
\n\u2192
Income and expenses are translated using an average
\nexchange rate per month
\n\u2192
Equity transactions, except for pro\ufb01t or loss for the
\nperiod, are translated using the transaction date rates
\nAll resulting exchange di\ufb00erences are booked as a separate
\ncomponent in other comprehensive income (OCI)
\nAny goodwill arising on acquisition of a foreign operation and
\nany fair value adjustment to the carrying amount of assets and
\nliabilities arising on the acquisition, are treated as assets and
\nliabilities of the foreign operations. On disposal of a foreign
\nentity, the deferred cumulative amount recognised in other
\ncomprehensive income relating to that particular foreign
\noperation, is recognised in the statement of pro\ufb01t or loss.
\nStatement of cash \ufb02ows
\nThe statement of cash \ufb02ows is prepared under the indirect
\nmethod. Cash in\ufb02ows and out\ufb02ows are shown separately for
\ninvesting and \ufb01nancing activities, while operating activities
\ninclude both cash and non-cash e\ufb00ect items. Interest received
\nand paid and other \ufb01nancial expenses, such as bank guarantee
\nexpenses, are reported as a part of operating activities. Net
\ncurrency gains or losses related to \ufb01nancing activities are
\nreported as part of \ufb01nancing activities. Dividends received from
\njoint ventures and associates that do not operate within Elkem's
\nmain business areas are included in investing activities.
\nDividend to shareholders
\nDividend is recognised as a liability when the shareholders'
\nright to payment is established, which is when the dividend is
\napproved by the General Meeting.
\nChanges in accounting policies and correction
\nof material errors
\nChanges in accounting policies and correction of material errors
\nare recognised retrospectively by restating the comparative
\namounts for the prior period presented, including the opening
\nbalance of the prior year.
\nChanges in accounting policy
\nThe IFRS Interpretations Committee (IFRIC) published an
\nagenda decision in April 2021 \u201cCon\ufb01guration or Customisation
\nCosts in a Cloud Computing Arrangement (IAS 38 Intangible
\nAssets)\u201d, con\ufb01rming that a cloud computing customer should
\nexpense the costs of con\ufb01guring or customising a supplier\u2019s
\napplication software in a Software as a Service arrangement.
\nFrom 1.1.2022 Elkem has applied this policy for costs related
\nto the implementation of cloud computing. Following the
\naccounting policy change NOK 24 million was adjusted
\ntowards opening balance of equity in second quarter of 2022.
\nDue to materiality comparable \ufb01gures are not restated.
\nChange in presentation
\nPresentation of realised hedge ine\ufb00ectiveness is changed
\nfrom raw materials and energy for production to other items
\nin the statement of pro\ufb01t and loss. The change is done to
\npresent realised e\ufb00ects together with unrealised e\ufb00ects from
\nine\ufb00ectiveness. The impact from realised ine\ufb00ectiveness has
\nnot been material in previous years. Comparable \ufb01gures are
\nrestated. See note 34 Changes in accounting policies.
\nNew and revised standards - adopted
\nNew or revised accounting standards and interpretations
\nimplemented as of 1 January 2022 are among others Onerous
\nContracts \u2013 Costs of Ful\ufb01lling a Contract (Amendments to IAS
\n37) and Proceeds before Intended Use (Amendments to IAS 16
\nProperty, plant and equipment). The new or revised accounting
\nstandards and interpretations do not represent a signi\ufb01cant
\nimpact to Elkem's accounting policies.
\nNew standards, interpretations and amendments
-
\nnot yet e\ufb00ective
\nThe consolidated \ufb01nancial statements will be a\ufb00ected by
\nfuture changes in IFRS. No standards, interpretations or
\namendments published at the balance sheet date are
\nexpected to have signi\ufb01cant e\ufb00ect on the group.
3. Accounting estimates
\nThe preparation of the consolidated \ufb01nancial statements
\naccording to IFRS requires management to make judgments,
\nestimates and assumptions that a\ufb00ect the application of
\naccounting policies and the reported amounts of assets,
\nliabilities, income and expenses. When management makes
\nestimates and assumptions concerning the future, the
\nresulting accounting estimates will, by de\ufb01nition, seldom equal
\nthe actual outcome.
\nEstimates and judgements are continually evaluated and are
\nbased on historical experience and other factors, including
\nexpectations of future events that are believed to be
\nreasonable under the circumstances. Revisions of reported
\nestimates are recognised in the period in which the estimates
\nare revised and in any future period a\ufb00ected. Changes
\nin accounting estimates are recognised prospectively by
\nincluding them in the statement of pro\ufb01t or loss in the period
\nof the change and future periods, if the change a\ufb00ects both.
\nThe estimates and assumptions that have a signi\ufb01cant risk
\nof causing a material adjustment to the carrying amounts
\nof assets and liabilities within the next \ufb01nancial year are
\naddressed in the di\ufb00erent notes.
\nInformation about judgements, assumptions and estimation
\nuncertainties at 31 December 2022 that have the most
\nsigni\ufb01cant e\ufb00ects on the amounts recognised in the \ufb01nancial
\nstatements is included in the following notes:
\n\u2192
Note 14 Taxes
\n\u2192
Note 15 Property, plant and equipment
\n\u2192
Note 19 Impairment assessment
\n\u2192
Note 24 Provisions and other liabilities
\n\u2192
Note 25 Financial assets and liabilities
\n4. Composition of the group
\nPrinciple
\nConsolidation
\nThe consolidated \ufb01nancial statements include the \ufb01nancial
\nstatements of Elkem ASA and entities controlled directly or
\nindirectly by Elkem ASA. The group controls an entity when the
\ngroup is exposed to, or has rights to, variable returns from its
\ninvolvement with the entity and has the ability to a\ufb00ect those
\nreturns through its power over the entity. Subsidiaries are fully
\nconsolidated from the date on which the group obtains control,
\nand are deconsolidated from the date that control ceases.
\nPro\ufb01t or loss and each component of OCI are attributed to
\nthe equity holders of the parent of the group and to non-
\ncontrolling interests, presented on separate lines in the
\n\ufb01nancial statements.
\nAll intra-group assets and liabilities, equity, income
\nand expenses and gains and losses are eliminated in
\nfull on consolidation.
\nBusiness combinations
\nBusiness combinations are accounted for using the
\nacquisition method in accordance with IFRS 3. The
\nconsideration transferred in a business combination is
\nmeasured at fair value, and goodwill is measured as the
\nexcess of the sum of consideration transferred, and net
\nidenti\ufb01able fair value of transferred assets and liabilities.
\nElkem's contingent consideration is classi\ufb01ed as a \ufb01nancial
\nliability and measured at fair value at the acquisition date.
\nThe liability is subsequently measured at fair value at each
\nreporting date, with changes recognised in other items in
\nthe statement of pro\ufb01t or loss. Acquisition-related costs are
\nexpensed as incurred.
\nAcquisitions of non-controlling interests are accounted for
\nas transactions with owners in their capacity as owners, and
\ntherefore no goodwill is recognised as a result. Adjustments
\nto non-controlling interests arising from transactions that do
\nnot involve the loss of control, are based on a proportionate
\namount of the net assets of the subsidiary.
\nDuring a measurement period of maximum one year
\nprovisional amounts recognised at the acquisition date are
\nadjusted to re\ufb02ect new information obtained about facts and
\ncircumstances that existed on the date of acquisition. Any
\nadjustments of identi\ufb01ed assets or liabilities in the acquisition
\nare o\ufb00set by a corresponding increase / decrease in goodwill.
\nBusiness combinations under common control
\nBusiness combinations involving entities under common
\ncontrol are accounted for on a historical cost basis. This
\nmeans applying book value accounting, which is applied in
\nthe following manner:
\n\u2192
Assets and liabilities of the combining entities are
\nre\ufb02ected at their carrying amounts.
\n\u2192
No new goodwill is recognised as a result of
\nthe combination.
\n\u2192
The statement of pro\ufb01t or loss re\ufb02ects the result of
\nthe combining entities for the full year, irrespective
\nof when the combination took place.
\n\u2192
Comparative \ufb01gures are restated.
\n\u2192
The purchase price is booked against equity at
\nthe acquisition date.
\nJudgements and estimates
\nBusiness combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Elkem ASA and the following subsidiaries and joint
\noperations make up the composition of the group and are
\nincluded in the consolidated \ufb01nancial statement
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterests
\n31.12.2021
\nEquity
\ninterests
Owner
\nElkania DA (Joint operation)
NOK
Norway
50 %
50 %
Elkem ASA
\nElkem (Thailand) Co., Ltd.
THB
Thailand
100 %
100 %
Elkem ASA
\nElkem Carbon (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem Carbon
\nSingapore Pte. Ltd.
\nElkem Carbon AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Carbon Malaysia Sdn. Bhd.
MYR
Malaysia
100 %
100 %
Elkem Carbon AS
\nElkem Carbon Singapore Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem Carbon AS
\nElkem Chartering Holding AS
NOK
Norway
80 %
80 %
Elkem ASA
\nElkem Digital O\ufb03ce AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Distribution Center B.V.
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Dron\ufb01eld Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Egypt for Industry,
USD
Egypt
100 %
100 %
Elkem International AS
\nContracting & Trading S.A.E.
\nElkem Ferroveld JV (Joint operation)
ZAR
South Africa
50 %
50 %
Elkem Carbon AS
\nElkem Foundry (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Iberia S.L.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem International AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem International Trade (Shanghai) Co., Ltd.
CNY
China
100 %
100 %
Elkem International AS
\nElkem \u00cdsland ehf.
NOK
Iceland
100 %
100 %
Elkem ASA
\nElkem Japan K.K.
JPY
Japan
100 %
100 %
Elkem ASA
\nElkem Korea Co., Ltd.
KRW
Republic
100 %
100 %
Elkem ASA
\nof Korea
\nElkem Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Madencilik Metalurji Sanayi
EUR
Turkey
100 %
100 %
Elkem International AS
\nVe Ticaret Ltd. STI
\nElkem Materials, Inc.
USD
USA
100 %
100 %
NEH LLC
\nElkem Materials Delaware, Inc.
USD
USA
100 %
100 %
Elkem Materials, Inc.
\nElkem Materials Processing (Tianjin) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Materials Processing Services BV
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Materials South America Ltda.
BRL
Brazil
100 %
100 %
Elkem Materials, Inc.
\nElkem Metal Canada Inc.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Milling Services GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Nordic A.S.
DKK
Denmark
100 %
100 %
Elkem ASA
\nElkem Oil\ufb01eld Chemicals FZCO Ltd.
AED
UAE
51 %
51 %
Elkem ASA
\nElkem Paraguay S.A.
USD
Paraguay
100 %
100 %
\n3)
\nElkem ASA
\nElkem Participa\u00e7\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
BRL
Brazil
100 %
100 %
Elkem Carbon AS
\nElkem Processing Services S.A.
\n1)
\nEUR
Belgium
100 %
-
Elkem ASA
\nElkem S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterest
\n31.12.2021
\nEquity
\ninterest
\nOwner
\nElkem Silicon Materials (Lanzhou) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicon Product Development AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Siliconas Espa\u00f1a S.A.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem Silicones (UK) Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Silicones Brasil Ltda.
BRL
Brazil
100 %
100 %
Elkem ASA
\nElkem Silicones Canada Corp.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Silicones Czech Republic, s.r.o.
CZK
Czech Republic
100 %
100 %
Elkem ASA
\nElkem Silicones Finland OY
EUR
Finland
100 %
100 %
Elkem ASA
\nElkem Silicones France SAS
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Germany GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Silicones Guangdong Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones Hong Kong Co., Ltd.
HKD
Hong Kong
100 %
100 %
Elkem ASA
\nElkem Silicones Korea Co., Ltd.
KRW
Republic
\nof Korea
\n100 %
100 %
Elkem ASA
\nElkem Silicones Material Zhongshan Co., Ltd.
CNY
China
100 %
100 %
Elkem Silicones
\nGuangdong Co., Ltd.
\nElkem Silicones M\u00e9xico S. De R.L. De C.V.
MXN
Mexico
100 %
100 %
Elkem ASA
\nElkem Silicones Poland sp. z o.o.
PLN
Poland
100 %
100 %
Elkem ASA
\nElkem Silicones Scandinavia AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Silicones Services S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Shanghai Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones USA Corp.
USD
USA
100 %
100 %
Elkem ASA
\nElkem Siliconi Italia S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nElkem Singapore Materials Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem ASA
\nElkem South Asia Private Limited
INR
India
100 %
100 %
Elkem ASA
\nElkem UK Holdings Ltd.
GBP
United Kingdom
100 %
100 %
Elkem ASA
\nElkem Uruguay S.A.
USD
Uruguay
100 %
100 %
Elkem ASA
\nEuro Nordic Logistics BV
EUR
Netherlands
80 %
80 %
Elkem Chartering
\nHolding AS
\nEuro Nordic Netherlands BV
EUR
Netherlands
80 %
80 %
Euro Nordic Logistics BV
\nExplotaci\u00f3n de Rocas Industriales y
EUR
Spain
100 %
100 %
Elkem ASA
\nMinerales S.A. (ERIMSA)
\nIniconce, S.L.
EUR
Spain
100 %
100 %
Explotaci\u00f3n de Rocas
\nIndustriales y Minerales S.A.
\nJiangxi Bluestar Xinghuo Silicones Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nNEH LLC
USD
USA
100 %
100 %
Elkem ASA
\nNorenoComercial Importada e
BRL
Brazil
100 %
100 %
Elkem Participa\u00e7\u00f2es
\nExportadora Limitada
Ind\u00fastria e Com\u00e9rcio
\nLimitada
\nNorsil, S.A.
EUR
Spain
100 %
100 %
Iniconce, S.L
\nTifwer Trade S.A.
USD
Uruguay
100 %
100 %
Elkem Uruguay S.A.
\nVianode AS
\n2)
\nNOK
Norway
-
100 %
Elkem ASA
\n1)
\nPreviously KeyVest Belgium S.A.
\n2)
\nSee Loss of control.
\n3)
\nElkem ASA owns 79% and Elkem Uruguay S.A owns 21%
Changes in composition of the group in 2022,
\nbusiness combinations
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by acquisition
\nfrom Kvitebj\u00f8rn Energi AS. Salten Energigjenvinning AS
\noperates the Elkem Salten energy recovery plant. The
\ninvestment in the energy recovery plant further strengthens
\nElkem's e\ufb00orts to ensure environmentally friendly silicon and
\nferrosilicon production with the lowest possible emissions and
\nlowest possible use of resources. Salten Energigjenvinning AS
\nwas merged with Elkem ASA in 2022 and is presented within
\nthe Silicon products operating segment.
\nThe energy recovery plant has been built in partnership between
\nElkem and Kvitebj\u00f8rn Energi. The total investment in the energy
\nrecovery plant has amounted to around NOK 1,180 million,
\n\ufb01nanced through a NOK 350 million grant from Enova, external
\ndebt and some equity. The book value of Elkem's 50% equity
\naccounted joint venture was NOK 47 million at 31 January 2022.
\nThe di\ufb00erence between the fair value and the book value of the
\n50% share results in a fair value gain of NOK 75 million. This
\ngain is partially o\ufb00set by a loss on pre-existing relationships of
\nNOK 58 million related to delivery of heat from Elkem ASA to
\nSalten Energigjenvinning AS and a loss of NOK 13 million related
\nto the cash \ufb02ow hedge reserve from an interest rate hedge in
\nSEAS which has been reclassi\ufb01ed from other comprehensive
\nincome to other items in pro\ufb01t and loss as a result of the
\ntransaction (see note 12 Other items). If the company had been
\npart of the group from 1 January 2022 revenue would have
\nincreased with NOK 1 million and pro\ufb01t after tax would have
\ndecreased with NOK 6 million.
\n20 June 2022 Elkem acquired Elkem Processing Services
\nS.A (formerly KeyVest Belgium S.A), a specialist company in
\nthe sourcing of materials and production of metal powders
\nto the refractory industry and other segments including
\nadvanced ceramics. With the acquisition of Elkem Processing
\nServices S.A Elkem will enable further growth by providing
\nadditional specialised products to our current customers,
\nimprove service level and processing capabilities and grow
\nin adjacent segments. The acquisition will expand Elkem's
\nproduct portfolio and create a platform for further growth.
\nThe production facility and related inventory amounts to
\naround NOK 30 million. After the acquisition date revenues
\nof NOK 37 million and pro\ufb01t after tax of NOK 1 million from
\nthe company has been included in consolidated statement of
\ncomprehensive income. If the company had been part of the
\ngroup from 1 January 2022 revenue and pro\ufb01t after tax would
\nhave increased with NOK 96 million and NOK 16 million
\nrespectively, including a NOK 5 million gain from bargain
\npurchase. Elkem Processing Services S.A is presented within
\nthe Silicon Products operating segment.
\nNet cash out\ufb02ow
2022
\nCash transferred on acquisition
(156)
\nCash and cash equivalents of the acquiree
48
\nAcquisition of subsidiaries, net of cash acquired
(108)
\nThe table below summarise the total consideration and the
\nprovisional amounts recognised for assets acquired and
\nliabilities assumed after the business combination:
\nConsideration
2022
\nCash transferred on acquisition
156
\nFair value of 50% pre-transaction ownership in SEAS
122
\nTotal consideration
278
\nAssets acquired and liabilities assumed
\nAmounts in NOK million
Carrying amount
Excess value
Fair value
\nProperty, plant and equipment
\nOther intangible assets
\nDeferred tax assets
\nInventories
\nTrade receivables
\nOther assets, current
\nCash and cash equivalents
\nDeferred tax liabilities
\nInterest-bearing liabilities, non-current
\nDerivatives, non-current
\nTrade payables
\nIncome tax payables
\nInterest-bearing liabilities, current
\nProvisions and other liabilities, current
\nTotal identi\ufb01able net assets
\n823
\n0
\n7
\n29
\n10
\n13
\n48
\n-
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n128
\n119
\n6
\n-
\n-
\n-
\n-
\n-
\n(28)
\n-
\n-
\n-
\n-
\n-
\n-
\n97
\n942
\n6
\n7
\n29
\n10
\n13
\n48
\n(28)
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n225
\nLoss on pre-existing relationship
\nGain on bargain purchase
\n1)
\nTotal recognised
\n-
\n-
\n128
\n-
\n-
\n97
\n58
\n(5)
\n278
\n1)
\nAfter the transaction process started, KeyVest delivered better than expected results. This was not fully re\ufb02ected in the \ufb01nal purchase
\nprice, resulting in a bargain purchase.
\nAcquisition-related costs of NOK 2 million is recognised in
\nother items in the statement of pro\ufb01t or loss in 2022.
\nLoss of control
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 150 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the fair
\nvalue measurement of Elkem's retained investment in Vianode.
\nFollowing the transaction Elkem will classify the remaining
\ninvestment as a joint venture and measure the investment
\nusing the equity method of accounting.
\nThe value of the investment on initial recognition was NOK 576
\nmillion including the \ufb01rst tranche of capital injection on loss
\nof control, NOK 134 million. Vianode had a negative overdraft
\nposition at the transaction date resulted in a positive cash
\ne\ufb00ect for the group on disposal of NOK 151 million.
\nNet cash in\ufb02ow
2022
\nCash received on disposal
-
\nCash and cash equivalents of the subsidiaries
151
\nDisposal of subsidiaries, net of cash
151
\nChanges in composition of the group in 2021,
\nbusiness combination
\nNo business combinations took place in 2021.
5. Equity accounted investments and joint operations
\nPrinciple
\nJoint arrangements
\nInvestments in joint arrangements are classi\ufb01ed as either joint
\noperations or joint ventures, depending on the contractual
\nrights and obligations of each investor.
\nJoint ventures are accounted for using the equity method.
\nUnder the equity method, the investment is initially recognised
\nat cost, and the carrying amount is increased or decreased
\nto recognise Elkem's share of the pro\ufb01t or loss, and other
\ncomprehensive income of the investee after the date of
\nacquisition. In cases where a joint venture's loss or other
\ncomprehensive income exceed the initially recognised cost
\nthe carrying amount is presented to re\ufb02ect Elkem's liability
\nto \ufb01nance the joint venture only to the extent that Elkem has
\nan obligation to fund the investees operations. Any liability to
\n\ufb01nance a joint venture is presented either as part of provisions
\nand other liabilities, current, or netted against Elkem's
\nreceivables towards the joint venture.
\nThe group's interest in joint operations is recognised in relation
\nto its interests in the joint operation:
\n\u2192
Assets, including its share of any assets held jointly
\n\u2192
Liabilities, including its share of any liabilities incurred jointly
\n\u2192
Revenue from the sale of its share of the output arising
\nfrom the joint operation
\n\u2192
Expenses, including its share of any expenses
\nincurred jointly
\nInvestments in associates
\nAssociates are those entities in which the group has signi\ufb01cant
\nin\ufb02uence, but no control over the \ufb01nancial and operating
\npolicies. Signi\ufb01cant in\ufb02uence is presumed to exist when the
\ngroup holds between 20% and 50% of the voting power
\nof another entity. Investments in associates are accounted
\nfor using the equity method. Under the equity method, the
\ninvestment is initially recognised at cost, and the carrying
\namount is increased or decreased to recognise the investor\u2019s
\nshare of the pro\ufb01t or loss and other comprehensive income
\nof the investee after the date of acquisition. In cases where
\nan associates' loss or other comprehensive income exceed
\nthe initially recognised cost the carrying amount is presented
\nto re\ufb02ect Elkem's liability to \ufb01nance the associate only to the
\nextent that Elkem has an obligation to fund the investees
\noperations. Any liability to \ufb01nance an associate is presented
\neither as part of provisions and other liabilities, current, or
\nnetted against Elkem's receivables towards the associate. The
\ngroup\u2019s investments in associates includes goodwill identi\ufb01ed
\non acquisition.
\nUpon disposal of an associate that results in the group
\nlosing signi\ufb01cant in\ufb02uence over that associate, any retained
\ninvestment is measured at fair value at that date.
\nShare of pro\ufb01t from investments in associates
\nand joint ventures
\nShare of pro\ufb01t (loss) from investments in associates and
\njoint ventures is recognised in the statement of pro\ufb01t or loss
\ndepending on the purpose of the investments. Investments
\nthat are closely related to the group's main activities are
\nrecognised as share of pro\ufb01t from equity accounted
\ncompanies, included in operating income. Investments in
\nassociates and joint ventures that do not operate within
\nElkem's main business areas are recognised as share of pro\ufb01t
\nfrom equity accounted \ufb01nancial investments.
\nElkem has interests in the following joint
\narrangements and associates
\nName of entity
Business o\ufb03ce
Country
\nPrincipal
\nactvities
Classi\ufb01cation
\n% equity
\ninterests
\n2022
\n% equity
\ninterests
\n2021
\nElkem Ferroveld JV
Ferrobank
South Africa
Electrode paste
Joint
50 %
50 %
\nEmalahleni
production
operation
\nElkania DA
Hauge i Dalane
Norway
Micro\ufb01ne weighting
Joint
50 %
50 %
\nmaterial
operation
\nNorth Sea Container Line AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nNorth-Sea Management AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nSalten Energigjenvinning AS
Oslo
Norway
Energy production
Joint venture
-
50 %
\nKla\ufb01 EHF
Grundartangi,
Iceland
Transportation /
Joint venture
50 %
50 %
\nAkranes
harbour services
\nWeldermate AS
Oslo
Norway
Robot welding systems
Joint venture
50 %
50 %
\nVianode AS
Oslo
Norway
Battery materials
Joint venture
40 %
-
\nJiangxi Guoxing Intelligence
Yangjialing
China
Energy production
Joint venture
35 %
-
\nEnergy Co. Ltd
\nEuro Partnership BV
Moerdijk
Netherlands
Ship management
\nservices
\nAssociate
50 %
50 %
\nCombined Cargo
Moerdijk
Netherlands
Warehousing
Associate
33 %
33 %
\nWarehousing BV
\nEuro Nordic Agencies
Antwerpen
Belgium
Ship agencies services
Associate
50 %
50 %
\nBelgium NV
\nEPB Chartering AS
Oslo
Norway
Deep sea charter services
Associate
25 %
25 %
\nGIE Osiris
Roussillon
France
Business supplies
\nand equipment
\nAssociate
25 %
25 %
\nFuture Materials AS
Grimstad
Norway
Marketing of
\nresearch facilities
\nAssociate
20 %
20 %
\nThe share of equity interests are equal to Elkem's voting
\nrights, with the exception of Elkem's investments in Vianode
\nAS where the parties in accordance with the shareholder
\nagreement have 33,33% ownership in\ufb02uence. The shareholder
\nagreements for Jiangxi Guoxing Intelligence Energy Co. Ltd
\nrequires a two-third majority in order to approve a majority
\nof business decision on behalf of the entity, making Elkem
\ntogether with one other party in control of the business.
\nOf the entities above, Salten Energigjenvinning AS (SEAS)
\nand Vianode AS is classi\ufb01ed to not operate within Elkem's
\nmain business areas.
\nThere is no quoted market price for the investments.
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by
\nacquisition from Kvitebj\u00f8rn Energi AS. The total investment in
\nthe energy recovery plant has amounted to around NOK 1,180
\nmillion, \ufb01nanced through a NOK 350 million grant from Enova,
\nexternal debt and some equity. The book value of Elkem's 50%
\nshare was NOK 47 million at 31 January 2022. The di\ufb00erence
\nbetween the fair value and the book value of the 50% share
\nresults in a fair value gain of NOK 75 million. This gain is
\npartially o\ufb00set by a loss on pre-existing relationships of NOK
\n58 million and a loss of NOK 13 million related to the cash \ufb02ow
\nreserve from an interest rate hedge in SEAS which has been
\nreclassi\ufb01ed from other comprehensive income to other items
\nin pro\ufb01t and loss as a result of the transaction (see note 12
\nOther items). If the company had been part of the group from 1
\nJanuary 2022 revenue would have increased with NOK 1 million
\nand pro\ufb01t after tax would have decreased with NOK 6 million.
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 149 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the
\nfair value measurement of Elkem's retained investment in
\nVianode. Following the transaction Elkem classi\ufb01ed the
\nremaining investment as a joint venture and measure the
\ninvestment using the equity method of accounting. The value
\nof the investment on initial recognition was NOK 576 million
\nincluding the \ufb01rst tranche of capital injection on loss of control,
\nNOK 134 million.
Elkem has also committed to cover its proportion of total
\ncapital injections in Vianode AS.
Elkem's proportion is NOK
\n534.5 million, whereof NOK 267 million is paid as of 31
\nDecember 2022.
\nAt the end of 2022 Elkem invested in Jiangxi Guoxing
\nIntelligence Energy Co. Ltd (Jinangxi Energy) an entity
\nestablished to build a cogeneration production facility near
\nElkem's plant Silicones Xinghuo. Elkem has committed to cover
\nits proportion of total estimated capital injections in Jinangxi
\nEnergy of CNY 48.7 million, whereof CNY 17.5 million is paid
\nas of 31 December 2022. In addition Elkem has committed to
\nsell the land, buildings and equipment needed to establish the
\ncogeneration facility and when the facility is up and running
\ncommitted to supply excess steam from production.
\nSee note 32 Related parties for commitments and transactions
\nrelated to the joint ventures and associates.
\nMovements in equity accounted investments
\n2022
2021
\nJoint
Joint
\nAmounts in NOK million
ventures
Associates
Total
ventures
Associates
Total
\nOpening balance
115
126
241
74
106
181
\ncquisition of and capital contribution to joint ventures
A
292
-
292
-
-
-
\nhange in equity interest, in relation to business combinations
C
(47)
-
(47)
-
-
-
\nhange in equity interest, in relation to disposal of subsidiaries
C
443
-
443
-
-
-
\nividend received
D
(13)
(14)
(26)
(28)
(7)
(34)
\nhare of pro\ufb01t (loss) from equity accounted companies
S
42
93
135
19
31
49
\nhare of pro\ufb01t (loss) from equity accounted \ufb01nancial investments
S
(17)
-
(17)
37
-
37
\nart of other comprehensive income
P
7
7
15
12
-
12
\nurrency translation di\ufb00erences
C
0
5
5
1
(4)
(3)
\nClosing balance
822
217
1 039
115
126
241
\nShare of pro\ufb01t and loss and carrying amount for equity
\naccounted investments
\n2022
31.12.2022
2021
31.12.2021
\nAmounts in NOK million
Share of pro\ufb01t
Carrying amount
Share of pro\ufb01t
Carrying amount
\nNorth Sea Container Line AS
42
95
19
65
\nNorth-Sea Management AS
(0)
2
1
3
\nSalten Energigjenvinning AS
(6)
-
37
46
\nKla\ufb01 EHF
(0)
1
(1)
1
\nWeldermate AS
(0)
0
-
0
\nVianode AS
(11)
699
-
-
\nJiangxi Guoxing Intelligence Energy Co. Ltd
-
25
-
-
\nEuro Partnership BV
10
44
11
39
\nCombined Cargo Warehousing BV
1
6
1
5
\nEuro Nordic Agencies Belgium NV
1
4
18
36
\nEPB Chartering AS
80
117
(0)
2
\nGIE Osiris
-
46
-
44
\nuture Materials AS
F
-
0
-
0
\nTotal
117
1 039
86
241
\nCash-\ufb02ow from operations, equity accounted investments
\nAmounts in NOK million
2022
2021
\nShare of pro\ufb01t (loss) from equity accounted investments
(135)
(49)
\nDividend received
26
34
\nEquity accounted investments
(108)
(15)
\nSummary of \ufb01nancial information for joint ventures on a 100% basis
\nAmounts in NOK million
\nVianode
\nAS
\n1)
\nOther
\nTotal
\n2022
Other
\nTotal
\n2021
\nCurrent assets,
including cash and cash equivalents NOK 784 million (NOK 92 million)
\nNon-current assets
\nCurrent liabilities, including current \ufb01nancial liabilities NOK 0 million (NOK 0 million)
\nNon-current liabilities, including non-current \ufb01nancial liabilities NOK 0 million
\n(NOK 651 million)
\nNet assets/equity
\n729
\n783
\n120
\n127
\n1 265
\n269
\n92
\n94
\n-
\n268
\n998
\n875
\n214
\n127
\n1 533
\n234
\n817
\n112
\n710
\n229
\n234
\n817
\n112
\n710
\n229
\nExcess value
\nElkem's carrying amount
\nTotal revenue
\nTotal expenses, including depreciation and amortisation NOK 31 million
\n(NOK 5 million) and other items
\nFinancial income, including interest income NOK 0 million (NOK 0 million)
\nFinancial expenses, including interest expenses NOK 4 million (NOK 11 million)
\nTax expense
\nTotal pro\ufb01t for the year
\n193
\n699
\n0
\n(33)
\n5
\n(0)
\n0
\n(28)
\n-
\n123
\n907
\n(834)
\n3
\n(4)
\n(0)
\n71
\n193
\n822
\n907
\n(867)
\n8
\n(4)
\n(0)
\n43
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\nOther comprehensive income
\nTotal comprehensive income
\n-
\n(28)
\n(14)
\n57
\n(14)
\n29
\n24
\n134
\n24
\n134
\nElkem's share of pro\ufb01t for the year
\nElkem's share of other comprehensive income
\n(11)
\n-
\n36
\n7
\n24
\n7
\n55
\n12
\n55
\n12
\n1)
\nThe \ufb01gures for Vianode AS is based on preliminary \ufb01gures for 2022
\nSummary of \ufb01nancial information for associates on a 100% basis
\nAmounts in NOK million
Total 2022
Total 2021
\nTotal operating income
1 785
152
\nTotal expenses
(1 437)
(53)
\nTotal pro\ufb01t for the year
347
99
\nOther comprehensive income
29
-
\nTotal comprehensive income
377
99
\nElkem's share of pro\ufb01t for the year
93
31
\nElkem's share of other comprehensive income
7
-
\nNet assets/equity
768
417
\nElkem's carrying amount
217
126
6. Operating segments
\nPrinciple
\nElkem identi\ufb01es its segments according to the organisation
\nand reporting structure as decided and followed up by group
\nmanagement. Operating segments are components of a
\nbusiness that are evaluated regularly by the chief operating
\ndecision maker, de\ufb01ned as the CEO, for the purpose of
\nassessing performance and allocating resources. Elkem's
\noperating segments represent separately managed business
\nareas with unique products serving di\ufb00erent markets.
\nSegment performance is evaluated based on EBITDA which is
\nthe primary segment result and operating pro\ufb01t (loss) before
\nother items (EBIT), see de\ufb01nitions below. Elkem's \ufb01nancing
\nand income tax are managed on group basis and are not
\nallocated to operating segments.
\nTransactions between operating segments are conducted on
\nan arm's length basis in a manner similar to transactions with
\nthird parties.
\nRevenues are, in addition, disaggregated by geographical
\nmarket based on the location of the customer.
\nNon-current assets by geographical areas are based on the
\nlocation of the entity owning the assets.
\nThe segment reporting is based on the accounting policies
\napplied for the group with the exception of:
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and from
\nthe discontinuation of hedging is included in other items
\nin Elkem's statement of pro\ufb01t and loss, but included in
\noperating expenses in the segment reporting. This is because
\nmanagement follows up the operating segments including the
\nimpact of the realised e\ufb00ects from power contracts. Elkem has
\npreviously included realised e\ufb00ects from discontinuation of
\nhedging in other items for both group and operating segments.
\nThe change in presentation does not impact comparable
\n\ufb01gures for 2021.
\nLease payments under internal lease agreements are
\nrecognised as operating expenses on a straight-line basis over
\nthe lease term.
\nElkem's operating segments
\nElkem identi\ufb01es its segments according to the organisation
\nand reporting structure used by group management. Elkem
\nhas three reportable segments; Silicones, Silicon Products and
\nCarbon Solutions.
\nThe Silicones division produces and sells a range of silicone-
\nbased products across various sub-sectors including release
\ncoatings, engineering elastomers, healthcare products,
\nspecialty \ufb02uids, emulsions and resins.
\nThe Silicon Products division produces various grades of
\nmetallurgical silicon, ferrosilicon, foundry alloys and microsilica
\nfor use in a wide range of end applications.
\nThe Carbon Solutions division produces carbon electrode
\nmaterials, lining materials and specialty carbon products for
\nmetallurgical processes for the production of a range of metals.
\nOther comprise Elkem group management and centralised
\nfunctions within \ufb01nance, logistics, power purchase,
\ntechnology, digital o\ufb03ce and strategic projects such as
\nbiocarbon and battery projects. The battery technology
\ncompany Vianode AS was de-consolidated in the third quarter
\nof 2022 and is now classi\ufb01ed as a joint venture.
\nEliminations comprise intersegment sales and pro\ufb01t. Elkem
\nfollows internationally accepted principles for transactions
\nbetween related parties within the group. In general, Elkem
\nseeks to use transaction-based methods (comparable
\nuncontrolled price, transactional net margin method, cost
\nplus and resale price method) in order to set the price for the
\ntransaction.
\nThe main related party transactions between operating
\nsegments in Elkem can be divided as follows:
\n\u2192
Silicon Products sale of metallurgical silicon to Silicones.
\nSales prices are based on sale to external customers and
\nCRU prices.
\n\u2192
Carbon Solutions sale of electrode paste and lining
\nmaterial to Silicon Products. Sales prices are based on
\nprices to external customers.
\n\u2192
Other sale of management services e.g., logistics,
\nprocurement, \ufb01nancial services, technical support and
\nR&D services. Prices are based on cost plus.
\nMajor customers
\nElkem has a range of customers, but no single customer
\namounts to 10% or more of total operating income.
\nMain items by operating segment
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Total
\nRevenue from sale of goods (note 7)
18 994
22 361
3 393
(87)
-
44 660
\nOther revenue (note 7)
66
72
21
199
-
358
\nOther operating income (note 7)
150
542
5
48
-
746
\nShare of pro\ufb01t from equity accounted companies (note 5)
-
(0)
(0)
135
-
135
\nTotal operating income from external customers
19 210
22 974
3 419
295
-
45 898
\nOperating income from other segments
78
1 483
333
395
(2 289)
-
\nTotal operating income
19 288
24 457
3 752
690
(2 289)
45 898
\nOperating expenses
(17 266)
(14 233)
(2 586)
(921)
2 032
(32 973)
\nEBITDA
2 022
10 224
1 166
(231)
(257)
12 925
\nEBIT
743
9 630
1 063
(281)
(257)
10 898
\nCash \ufb02ow from operations
1 271
7 802
620
(156)
14
9 551
\nWorking capital
2 449
5 467
739
(648)
(371)
7 637
\nCapital employed
16 762
11 304
1 597
1 018
(371)
30 310
\nReinvestments
(1 682)
\nStrategic investments
(2 797)
\nMovement CAPEX payables
421
\nCash \ufb02ow from investments in property, plant and equipment
\nand intangible assets, including received investment grants
\n(4 058)
\nMain items by operating segment
\n2021
\nAmounts in NOK million
Silicones
\nSilicon
\nProducts
\nCarbon
\nSolutions
Other
Eliminations
Total
\nRevenue from sale of goods (note 7)
\nOther revenue (note 7)
\nOther operating income (note 7)
\nShare of pro\ufb01t from equity accounted companies (note 5)
\nTotal operating income from external customers
\n17 206
\n43
\n117
\n-
\n17 366
\n13 557
\n96
\n422
\n(1)
\n14 074
\n1 917
\n21
\n5
\n-
\n1 943
\n64
\n179
\n41
\n51
\n335
\n-
\n-
\n-
\n-
\n32 743
\n340
\n586
\n49
\n33 717
\nOperating income from other segments
\nTotal operating income
\n63
\n17 429
\n710
\n14 783
\n234
\n2 176
\n398
\n733
\n(1 404)
\n(1 404)
\n-
\n33 717
\nOperating expenses
(13 758)
(11 081)
(1 669)
(777)
1 358
(25 926)
\nEBITDA
3 672
3 702
508
(44)
(46)
7 791
\nEBIT
2 528
3 154
360
(97)
(46)
5 899
\nCash \ufb02ow from operations
1 448
\nWorking capital
2 517
\nCapital employed
14 678
\nReinvestments
\nStrategic investments
\nMovement CAPEX payables
\nCash \ufb02ow from investments in property, plant and equipment
\nand intangible assets, including received investment grants
\n2 273
\n3 487
\n8 169
\n376
\n276
\n1 003
\n3
\n(518)
\n839
\n0
\n(90)
\n(90)
\n4 100
\n5 673
\n24 599
\n(1 657)
\n(1 717)
\n245
\n(3 128)
De\ufb01nitions
\nSegments performance are evaluated based on EBITDA
\nand EBIT. Elkem's de\ufb01nition of EBITDA may be di\ufb00erent
\nfrom other companies.
\nEBITDA
is de\ufb01ned as Elkem\u2019s pro\ufb01t (loss) for the period,
\nless income tax (expense) bene\ufb01t, \ufb01nance expenses, foreign
\nexchange gains (losses), \ufb01nance income, share of pro\ufb01t
\nfrom equity accounted \ufb01nancial investments, other items
\n(except realised gains and losses from hedge ine\ufb00ectiveness
\nand discontinuation of hedging), impairment losses and
\namortisation and depreciation.
\nEBIT
is de\ufb01ned as Elkem\u2019s pro\ufb01t (loss) for the period, less
\nincome tax (expense) bene\ufb01t, \ufb01nance expenses, foreign
\nexchange gains (losses), \ufb01nance income, share of pro\ufb01t from
\nequity accounted \ufb01nancial investments and other items
\n(except realised gains and losses from hedge ine\ufb00ectiveness
\nand discontinuation of hedging).
\nCash \ufb02ow from operations
is EBITDA including reinvestments,
\nchanges in working capital and equity accounted companies.
\nReinvestments
generally consist of capital expenditure
\nto maintain existing activities or that involve investments
\ndesigned to improve health, safety or the environment.
\nStrategic investments
generally consist of investments which
\nresult in capacity increases at Elkem\u2019s existing plants or
\nthat involve an investment made to meet demand in a new
\ngeographic or product area.
\nWorking capital
is de\ufb01ned as accounts receivable, inventory,
\nother current assets, accounts payable, current employee
\nbene\ufb01t obligations and other current liabilities. Accounts
\nreceivables are de\ufb01ned as trade receivables less bills
\nreceivable. Other current assets are de\ufb01ned as other current
\nassets less current receivables to related parties, current
\ninterest-bearing receivables, tax receivables, grants receivable,
\nassets at fair value through pro\ufb01t or loss and accrued interest
\nincome. Accounts payable are de\ufb01ned as trade payables
\nless CAPEX payables. Other current liabilities are de\ufb01ned as
\nprovisions and other current liabilities less current provisions,
\ncontingent considerations, contract obligations and liabilities
\nto related parties.
\nCapital employed
consists of working capital as de\ufb01ned above,
\nproperty, plant and equipment, right-of-use assets, other
\nintangible assets, goodwill, equity accounted investments,
\ngrants payable, trade payables and prepayments related to
\npurchase of non-current assets. The de\ufb01nition was changed
\nin 2022 to include right-of-use assets, goodwill and other
\nintangible assets. Comparable \ufb01gures are restated.
\nElkem's de\ufb01nitions may be di\ufb00erent from other companies.
\nBelow is a reconciliation of pro\ufb01t (loss) for the year against EBIT and EBITDA:
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nPro\ufb01t (loss) for the year
9 642
\nIncome tax (expense) bene\ufb01t
2 594
\nFinance expenses
313
\nForeign exchange gains (losses)
(85)
\nFinance income
(67)
\nShare of pro\ufb01t from equity accounted \ufb01nancial investments
17
\nOther items
(2 151)
\nOperating pro\ufb01t (loss) before other items
10 263
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and
\ndiscontinuation of hedging
635
\nEBIT
743
9 630
1 063
(281)
(257)
10 898
\nImpairment losses
28
\nAmortisation and depreciation
1 999
\nEBITDA
2 022
10 224
1 166
(231)
(257)
12 925
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nPro\ufb01t (loss) for the year
4 664
\nIncome tax (expense) bene\ufb01t
1 163
\nFinance expenses
276
\nForeign exchange gains (losses)
(241)
\nFinance income
(40)
\nShare of pro\ufb01t from equity accounted \ufb01nancial investments
(37)
\nOther items
(10)
\nOperating pro\ufb01t (loss) before other items
5 775
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and
\ndiscontinuation of hedging
124
\nEBIT
2 528
3 154
360
(97)
(46)
5 899
\nImpairment losses
76
\nAmortisation and depreciation
1 816
\nEBITDA
3 672
3 702
508
(44)
(46)
7 791
\nThe table below show realised e\ufb00ects from Elkem's power and
\nforeign exchange hedging programme, including embedded
\nderivatives and realised e\ufb00ects from hedge ine\ufb00ectiveness and
\ndiscontinuation of hedging, on the di\ufb00erent group segments.
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nRevenue from sale of goods (note 26)
0
37
-
(86)
(49)
\nOperating expenses (note 26)
-
982
44
(15)
1 012
\nTotal realised e\ufb00ects from derivatives included in EBITDA
0
1 019
44
(100)
963
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nRevenue from sale of goods (note 26)
-
27
-
65
92
\nOperating expenses (note 26)
-
295
2
17
315
\nTotal realised e\ufb00ects from derivatives included in EBITDA
-
322
2
82
407
Total revenue by geographic
\nmarket based on customer location
\nAmounts in NOK million
2022
2021
\nNorway
\nOther Nordic countries
\nUnited Kingdom
\nGermany
\nFrance
\nItaly
\nPoland
\nSpain
\nOther European countries
\nEurope
\nAfrica
\nUSA
\nCanada
\nBrazil
\nOther South American countries
\nAmerica
\nChina
\nJapan
\nSouth Korea
\nIndia
\nOther Asian countries
\nAsia
\nRest of the world
\n1 342
\n1 545
\n1 354
\n5 394
\n1 566
\n1 719
\n869
\n1 066
\n3 238
\n18 093
\n345
\n5 470
\n770
\n1 854
\n548
\n8 643
\n10 849
\n2 153
\n501
\n1 485
\n2 792
\n17 780
\n206
\n814
\n1 637
\n1 094
\n2 903
\n791
\n1 274
\n511
\n765
\n2 791
\n12 579
\n217
\n3 451
\n368
\n1 046
\n326
\n5 191
\n10 534
\n1 197
\n549
\n989
\n1 635
\n14 904
\n99
\nTotal revenue before hedging e\ufb00ects
45 067
32 991
\nRealised e\ufb00ects from hedging
\nprograms (note 26)
\nTotal revenue
\n(49)
\n45 018
\n92
\n33 083
\nNon-current assets by geographic
\nareas based on entity location
\nAmounts in NOK million
2022
2021
\nNorway
5 744
4 606
\nOther Nordic countries
1
528
\nUnited Kingdom
38
37
\nGermany
97
49
\nFrance
4 133
3 535
\nItaly
134
126
\nPoland
0
1
\nSpain
324
281
\nOther European countries
177
70
\nEurope
10 647
9 232
\nAfrica
112
89
\nUSA
882
710
\nCanada
643
523
\nBrazil
357
255
\nOther South American countries
494
436
\nAmerica
2 376
1 924
\nChina
10 930
8 411
\nJapan
2
3
\nSouth Korea
230
222
\nIndia
79
71
\nOther Asian countries
48
49
\nAsia
11 288
8 757
\nTotal non-current assets
24 423
20 001
\nNon-current assets are presented less derivatives and
\ndeferred tax assets.
\n7. Operating income
\nPrinciple
\nOperating income consists of:
\na.
Revenue
\nb.
Other operating income
\nc.
Share of pro\ufb01t (loss) from equity
\naccounted investments (note 5)
\n(a) Revenue
\nRevenue is measured based on the consideration speci\ufb01ed in
\na contract with a customer. Elkem recognises revenue when
\nElkem transfers control over a goods or service to a customer.
\nA \ufb01ve-step process is applied before revenue can be recognised:
\n\u2192
identify contracts with customers
\n\u2192
identify the separate performance obligation
\n\u2192
determine the transaction price of the contract
\n\u2192
allocate the transaction price to each of the separate
\nperformance obligations, and
\n\u2192
recognise the revenue as each performance obligation
\nis satis\ufb01ed.
\nSale of goods
\nElkem's main performance obligation is related to sale of goods
\nwhere the obligation is to deliver agreed volume of products
\nwithin the agreed speci\ufb01cation. Elkem has both short-term and
\nlong-term contracts. Short-term contracts, normally within one
\nmonth, cover delivery of an agreed volume at market price at
\nthe date the order is placed. These types of contracts are most
\ncommon for commodity products, such as sales of ferrosilicon
\nand silicones and sales to customers in China. The long-term
\ncontracts cover a period of a few months and up to one year,
\nwhere the prices normally are \ufb01xed within a volume range.
\nElkem has for sale of metallurgical silicon some contracts that
\ncover a period longer than one year. In these contracts the
\nprices are normally negotiated on an annual basis. Some of
\nElkem's sales contracts include an element of freight services,
\nsee separate section below for accounting policies.
\nRevenue is recognised when control of the goods is transferred
\nto the customer, at an amount that re\ufb02ects the consideration
\nto which Elkem expects to be entitled in exchange for those
\ngoods. Control is transferred to the buyer, according to the
\nagreed delivery term for each sale. Delivery terms are based
\non Incoterms 2020 issued by International Chamber of
\nCommerce, and the main terms are:
\n\"F\" terms, where the buyer arranges and pays for the main
\ncarriage. The risk is transferred to the buyer when the goods
\nare handed to the carrier engaged by the buyer.
\n\"C\" terms, where the group arranges and pays for the main
\ncarriage but without assuming the risk of the main carriage.
\nThe risk is transferred to the buyer when the goods are handed
\nover to the carrier engaged by the seller.
\n\"D\" terms, where the group arranges and pays for the
\ncarriage and retains the risk of the goods until delivery at
\nthe agreed destination. The ownership is transferred to the
\nbuyer upon arrival at the agreed destination, usually the
\npurchaser's warehouse.
\nThe goods are normally sold with standard warranties that
\nthe goods comply with the agreed-upon speci\ufb01cations. These
\nstandard warranties are accounted for using IAS 37 Provisions,
\nContingent Liabilities and Contingent Assets. Elkem does not
\nhave any other signi\ufb01cant obligations for returns or refunds.
\nFreight services included in sale of goods
\nFreight components included in sale of goods on incoterms
\n\"C\" terms are considered as a separate performance obligation
\nand recognised over the period the service is performed.
\nShipping and handling services that occur before the
\ncustomer takes control of the goods for sales on \"D\" terms are
\nconsidered to be part of ful\ufb01lling the sale of the goods.
\nSale of power and revenue connected to energy recovery
\nSale of electric power and revenue connected to energy
\nrecovery, mainly heat supply in the form of steam and hot
\nwater, el-certi\ufb01cates and el-tax, are recognised in income
\nbased on volume and price agreed with the customer. Revenue
\nconnected to energy recovery is mainly based on long-term
\ncontracts where the prices are regulated yearly based on
\nchanges in CPI or government regulated prices, except for
\nthe el-certi\ufb01cates where the price is based on the observable
\nmarket price at date of delivery.
\nRevenue from sale of services
\nRevenue from sale of services is recognised when the services
\nhave been provided. Sale of services are mainly related to
\nmanagement agreements with related parties based on a cost
\nplus a margin and sale of shipping and handling related services.
\n(b) Other operating income
\nInsurance settlements
\nIncome from insurance settlements are recognised as other
\noperating income when it is virtually certain that the group will
\nreceive the compensation. Expected cash \ufb02ows from credit
\ninsurance contracts where such contracts are deemed to be an
\nintegral part of the sale transactions is presented net against
\nimpairment losses trade and other receivables, included in
\nother operating expenses. See note 21 Trade receivables.
\nGrants
\nSee note 8 Grants
Details of revenue from contracts with customers
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n18 954
\n39
\n-
\n2
\n14
\n48
\n-
\n22 324
\n-
\n38
\n1
\n31
\n-
\n-
\n3 393
\n0
\n-
\n21
\n-
\n(1)
\n-
\n52
\n14
\n133
\n18 954
\n22 362
\n3 393
\n92
\n30
\n232
\nTotal revenue from contracts with customers
19 057
22 395
3 413
197
45 063
\nRental income
2
1
0
1
4
\nRealised hedging e\ufb00ects (note 26)
\nTotal revenue
\n0
\n19 060
\n37
\n22 432
\n-
\n3 414
\n(86)
\n112
\n(49)
\n45 018
\nDetails of revenue from contracts with customers
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n17 111
\n94
\n-
\n19
\n2
\n21
\n-
\n13 529
\n-
\n32
\n8
\n55
\n-
\n-
\n1 917
\n1
\n12
\n7
\n-
\n-
\n-
\n57
\n50
\n71
\n17 111
\n13 623
\n1 917
\n108
\n73
\n155
\nTotal revenue from contracts with customers
17 247
13 624
1 937
178
32 987
\nRental income
2
1
-
1
4
\nRealised currency hedging e\ufb00ects (note 26)
\nTotal revenue
\n-
\n17 249
\n27
\n13 652
\n-
\n1 937
\n65
\n244
\n92
\n33 083
\nDetails of other operating income
\nAmounts in NOK million
2022
2021
\nGain on disposal of \ufb01xed assets
0
0
\nInsurance settlements
19
27
\nGrants (note 8)
717
554
\nOther
10
5
\nTotal other operating income
746
586
\n8. Grants
\nPrinciple
\nGrants are recognised when it is reasonably assured that
\nElkem will comply with the conditions attached to them
\nand the grants will be received. Grants are recognised in the
\nstatement of pro\ufb01t or loss as other operating income, over
\nthe periods necessary to match them with the cost they are
\nintended to compensate.
\nTax credits related to R&D projects are classi\ufb01ed as
\ngovernment grants in other operating income if they
\nultimately are settled with cash, tax credits settled only via
\ntaxes are classi\ufb01ed as tax allowances. Grants relating to cost
\nof production of goods are recognised as other operating
\nincome when the produced goods are sold. Grants relating to
\nproperty, plant and equipment (\ufb01xed assets) and intangible
\nassets are deducted from the carrying amount of the asset and
\nrecognised in pro\ufb01t or loss as a reduction of the depreciation
\ncharge over the lifetime of the asset.
\nDetails of grants
2022
2021
\nOther
Deduction
Other
\nDeduction
\nAmounts in NOK million
\noperating
\nincome
\nof carrying
\namount FA/IA
\noperating
\nincome
\nof carrying
\namount FA/IA
\nR&D grants from the Norwegian government
59
-
59
\n15
\nR&D grants from the French government
71
-
59
\n-
\nOther R&D grants
13
-
14
\n-
\nCO
compensation from the Norwegian Environment Agency
\n2
\nEnergy recovery related grants
\n497
\n-
\n-
\n-
\n367
\n-
\n-
\n14
\nOther government grants
72
93
54
\n43
\nTotal government grants
712
93
553
\n72
\nNorwegian NO
\nx
\nOther grants
\nfund for reduced emission of NO
\nx
\n1
\n3
\n64
\n-
\n-
\n1
\n31
\n-
\nTotal grants from other than governments
5
64
1
\n31
\nTotal grants
717
157
554
\n103
\nGrants receivable related to \ufb01xed and intangible assets (note 22)
64
\n63
\nGrants receivable related to income (note 22)
862
\n633
\nGrants payable (note 24)
\nGrants, deferred income (note 24)
\n(16)
\n(8)
\n(15)
\n(18)
CO
\n2
\nallowances
\nCO
\n2
\nemission allowances allocated from the government are
\nclassi\ufb01ed as grants, measured at nominal value (zero). The CO
\n2
\nallowance scheme pertains to the group's plants in Europe. If
\nactual emissions exceed the number of allocated allowances,
\nadditional allowances must be purchased and the cost is
\ninclued as a part of production cost of inventory. The allocation
\nof free allowances for the period 2021-2025 has been decided
\nby the national authorities.
\nCO
\n2
\ncompensation
\nThe Norwegian government has since 2013 had a CO
\n2
\ncompensation scheme to partially compensate for CO
\n2
\ncosts included in the power price for certain industries. The
\ncompensation scheme is based on a corresponding scheme
\nfor EU and are approved by the EFTA surveillance authority
\nESA. The previous CO
\n2
\ncompensation scheme ended 31
\nDecember 2020 and a new scheme for 2021-2025 has been
\napproved by ESA and implemented into Norwegian regulation.
\nThe CO
\n2
\ncompensation scheme applies for Elkem's Norwegian
\nSilicon and Ferrosilicon plants. The compensation is based
\non the market price of CO
\n2
\nallowances and will as such vary
\nwith the price development. As the grant compensates power
\ncosts, which are costs recognised as part of the cost price of
\ninventory during the production process, the compensation
\nis recognised in the statement of pro\ufb01t or loss when the
\nproduced goods are sold.
\nNO
\nx
\nFund
\nThe industry in Norway pays a fee for their emission of NO
\nx
\nto a public foundation run by 15 industry and commerce
\nassociations. The foundation is self-\ufb01nanced by the fees and
\nthe purpose is to support projects that reduces NO
\nx
\nemissions
\nfrom the industry in Norway.
\nOther
\nThe remaining grants are mainly related to R&D and energy
\nrecovery projects.
\n9. Employee bene\ufb01ts
\nPrinciple
\nEmployee bene\ufb01ts
\nEmployee bene\ufb01ts are all forms of considerations given by an
\nentity in exchange for service rendered by employees or for
\ntermination of employment.
\nEmployee bene\ufb01ts include both current and non-current
\nbene\ufb01ts, and are expensed as incurred, together with any
\nsocial security taxes applicable.
\nCurrent bene\ufb01ts consist of wages and salaries, bonuses,
\nholiday payments and other short-term bene\ufb01ts that are
\nexpected to be settled within 12 months after the reporting
\nperiod. Non-current bene\ufb01ts consist mainly of jubilee and
\nlong-service bene\ufb01ts, post-employment bene\ufb01ts and post-
\nretirement bene\ufb01ts, not expected to be wholly settled within
\nthe next 12 months.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans comprise of arrangements whereby
\nthe company makes monthly contributions to the employees'
\npension plans, and where the future pensions are determined by
\nthe amount of the contributions and the return on the individual
\npension plan asset. The contributions are expensed as incurred
\nand there is no further obligation related to the contribution
\nplans. Prepaid contributions are recognised as an asset.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where Elkem is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. De\ufb01ned bene\ufb01t plans are
\nrecognised at present value of future liabilities considered
\nretained at the end of the reporting period, calculated
\nseparately for each plan. Plan assets are measured at fair
\nvalue and deducted in calculating the net pension obligation.
\nPension plans with a net asset and no o\ufb00setting rights are
\npresented as a part of other assets. Actuarial assumptions
\nare used to measure both the obligation and the expense and
\ne\ufb00ects of changes in estimates due to \ufb01nancial and actuarial
\nassumptions are recognised as other comprehensive income.
\nPast service costs arising due to amendments in bene\ufb01t plans
\nare expensed as incurred. Service costs are recognised as
\npart of employee bene\ufb01t expenses. Net interest is calculated
\nbased on net pension obligations at the start of the period,
\nmultiplied by the discount rate. Any di\ufb00erence between actual
\nreturn on pension assets and the interest income calculated
\nas a part of the net interest, will be recognised directly in other
\ncomprehensive income. Interest on net pension obligations are
\npresented as a part of \ufb01nance expenses.
\nMulti-employer de\ufb01ned bene\ufb01t plans where available
\ninformation is insu\ufb03cient to be able to calculate each
\nparticipant's obligation, are accounted for as contribution plans.
\nJudgements and estimates
\nEstimation uncertainty is mainly related to de\ufb01ned bene\ufb01t
\npension plans, where the calculation of pension obligations is
\nbased on \ufb01nancial and actuarial assumptions, such as discount
\nrates, future salary and pension adjustments, expected turnover
\nand mortality. Deviations between applied assumptions
\nand actual results in future periods will have e\ufb00ects on the
\ncalculated obligation. See information about sensitivity on
\npension obligations based on changes in main actuarial
\nassumptions below.
\nEmployee bene\ufb01t expenses
\nAmounts in NOK million
2022
2021
\nSalaries, holiday pay and variable compensation
(3 755)
(3 459)
\nEmployer's national insurance contributions / social security tax
(787)
(727)
\nPension expenses
(168)
(137)
\nShare-based payments (note 10)
(24)
(28)
\nOther payments / bene\ufb01ts
(185)
(179)
\nTotal employee bene\ufb01t expenses
(4 919)
(4 530)
\nAverage number of full-time equivalents
7 592
7 178
\nRemuneration to corporate management
\nAmounts in NOK million
2022
2021
\nFixed compensation
(33)
(31)
\nVariable compensation - STI
(20)
(29)
\nVariable compensation - LTI
(31)
(9)
\nOther bene\ufb01ts
(2)
(1)
\nPension bene\ufb01ts
(4)
(4)
\nTotal remuneration to corporate management
(90)
(75)
\nRemuneration provided to the board of directors
(5)
(5)
\nRemuneration provided to the committee remuneration
(1)
(0)
\nFor more details on the remuneration to corporate
\nmanagement see \"Report on salary and other remuneration to
\nleading personnel in Elkem ASA for the \ufb01nancial year 2022\".
\nThe report is published on Elkem's website.
\u2197
Shares and options granted to corporate management and
\nboard members
\n2022
2021
\nNumber
Number of
Number
Number of
\nName
Position
of shares
options
of shares
options
\nHelge Aasen
CEO
46 206
101 000
46 206
101 000
\nMorten Viga
CFO
46 896
408 380
46 896
800 000
\nKatja Lehland
SVP Human Resources
-
400 000
-
800 000
\nAsbj\u00f8rn S\u00f8vik
SVP Green Ventures & Digital
10 000
400 000
10 000
900 000
\nH\u00e5vard Moe
SVP Elkem Technology
110 000
600 000
60 000
900 000
\nLouis Vovelle
SVP Innovation R&D
6 896
425 140
6 896
800 000
\nFr\u00e9d\u00e9ric Jacquin
SVP Business development
81 551
408 380
6 551
850 000
\nInge Grubben-Str\u00f8mnes
SVP Silicon Products
35 189
676 526
35 189
900 000
\nLuiz Simao
SVP Carbon Solutions
20 000
350 000
10 000
650 000
\nLarry Zhang
SVP Silicones
-
250 000
500 000
\nZhigang Hao
\n1)
\nChair
-
-
-
-
\nDag Jakob Opedal
Vice chair
40 000
-
40 000
-
\nOlivier de Clermont-Tonnerre
\n1)
\nBoard member
15 517
-
15 517
-
\nYougen Ge
\n1)
\nBoard member
-
-
-
-
\nMarianne Johnsen
Board member
-
-
15 000
-
\nGrace Tang
Board member
-
-
-
-
\nNathalie Brunelle (from May)
Board member
-
-
-
-
\nJin Wang Johnny Wu (from May)
\n1)
\nBoard member
-
-
-
-
\nTerje Andre Hanssen
Board member (employee representative)
-
-
-
-
\nMarianne F\u00e6r\u00f8yvik
Board member (employee representative)
4 950
-
4 950
-
\nThomas Eggan (from July)
Board member (employee representative)
-
-
-
\nHeidi Feldborg
Observer (employee representative)
-
-
-
-
\nJan Harald Karlsen (from July)
Observer (employee representative)
-
-
-
\nAnja Isabel Dotzenrath (until Apr)
Board member
-
-
-
-
\nKnut Sande (until June)
Board member (employee representative)
-
-
-
-
\nPer Roar Aas (until June)
Observer (employee representative)
-
-
-
-
\n1)
\nRepresentatives for the majority shareholder.
\nEmployee bene\ufb01t assets and obligations
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nPension plan assets, net
\nPension contribution fund (note 22)
\nEmployee prepayments etc.
\nTotal employee bene\ufb01t assets
\n40
\n1
\n-
\n41
\n-
\n1
\n-
\n1
\n-
\n2
\n5
\n7
\n-
\n2
\n8
\n10
\nSalaries, holiday pay and variable compensation
\nEmployer's national insurance contributions / social security
\nPension plan obligations, net
\nOther bene\ufb01t plans
\nTotal employee bene\ufb01t obligations
\ntax
\n-
\n-
\n370
\n119
\n489
\n-
\n-
\n492
\n119
\n611
\n752
\n226
\n-
\n16
\n994
\n761
\n203
\n-
\n12
\n976
\n(a) Salaries, holiday pay and variable compensation
\nThe obligations are related to incurred employee bene\ufb01ts,
\nnot paid.
\nA pro\ufb01t-sharing plan is applicable for French entities with
\nmore than 50 employees, where the bonus liability must be
\ncalculated based on pro\ufb01t after tax, using a speci\ufb01c formula
\ngiven by the authorities. As at 31 December 2022 EUR 2 million
\n(EUR 0 million) is accrued related to the agreement.
\n(b) Pension plans
\nThe group has both de\ufb01ned contribution and de\ufb01ned bene\ufb01t
\nplans. For de\ufb01ned contribution plans the cost is equal to the
\ngroup's contribution to the employee's pension savings during
\nthe period. For de\ufb01ned bene\ufb01t plans the cost is calculated
\nbased on actuarial valuation methods, taking assumptions
\nrelated to the employee's salary, turnover, mortality, discount
\nrate, etc. into consideration.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans are the main pension plan for Elkem's
\nNorwegian entities, where the contribution to each individual
\npension plan is 5% of annual salary up to 7.1G and 15% of annual
\nsalary between 7.1-12G. 1G refers to the Norwegian national
\ninsurance scheme's basic amount, which is NOK 111 477 as at
\n1 May 2022. Pension on salary above 12G is not supported by
\nexternal service providers and is therefore handled as a separate
\nplan and included under de\ufb01ned bene\ufb01t plans.
\nIn addition, a Norwegian multi-employer early retirement
\nscheme called AFP, where su\ufb03cient information to calculate
\neach participant's pension obligation is not available, is
\naccounted for as it is a de\ufb01ned contribution plan in accordance
\nwith the Ministry of Finance's conclusion. The participants in the
\npension plan are jointly responsible for 2/3 of the plan's pension
\nobligation, the government is responsible for the remaining part.
\nThe pension premium in 2022 is 2.6% of the employees' salary
\nbetween 1 and 7.1G, covering this year's pension payments and
\ncontribution to a security fund for future pension obligations.
\nThe yearly premium for 2023 is set to 2.6%.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where the group is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. The group has funded and
\nunfunded bene\ufb01t plans in Norway, France, Germany, UK,
\nCanada, Japan and South Africa. The pension scheme in UK
\nand two of Canada's schemes are overfunded and are net in an
\nasset position. The schemes that are underfunded and are net
\nin a liability position as at 31 December 2022 are distributed as
\nfollows Norway 23%, France 51%, Canada 9%, other Europe
\n14%, other countries 3%. In Canada provisions are also made
\nfor medical insurance as well as pension bene\ufb01t plans.
\nThe Norwegian pension plans are unfunded and comprise
\npension on salaries above 12G, where the expense is 15%
\nof annual base salary that exceeds 12G plus interest on the
\nindividual calculated pension obligation, and some individual
\nretirement schemes that are closed.
\nBreakdown of net pension expenses
\nAmounts in NOK million
2022
2021
\nCurrent service expenses
(43)
(40)
\nAdministration expenses
(1)
(1)
\nNet pension expenses, de\ufb01ned bene\ufb01t plans
(45)
(40)
\nDe\ufb01ned contribution plans
(102)
(78)
\nEarly retirement scheme AFP (Norway)
(21)
(18)
\nTotal pension expenses
(168)
(137)
\nIn addition, interest expenses on net
(9)
(8)
\npension liabilities are recognised as a
\npart of \ufb01nance expenses
\nNet de\ufb01ned bene\ufb01t obligations
\nAmounts in NOK million
2022
2021
\nPresent value of funded pension obligations
(384)
(509)
\nFair value of plan assets
425
487
\nNet funded pension obligations
40
(22)
\nPresent value of unfunded pension obligations
(370)
(470)
\nNet value of funded and unfunded obligations
(329)
(492)
Movements in the de\ufb01ned bene\ufb01t obligations and plan assets
\n2022
2021
\nDe\ufb01ned
De\ufb01ned
Net
De\ufb01ned
De\ufb01ned
Net
\nbene\ufb01t bene\ufb01t plan pension plan
bene\ufb01t
bene\ufb01t plan
pension plan
\nAmounts in NOK million
obligations
assets
obligations
obligations
assets
obligations
\nOpening balance
(978)
487
(492)
(1 014)
460
(554)
\nCurrent service expenses
(43)
-
(43)
(40)
-
(40)
\nInterest (expenses) income
(22)
13
(9)
(18)
10
(8)
\nAdministration expenses
-
(1)
(1)
-
(1)
(1)
\nRemeasurement gains (losses)
237
(91)
146
59
9
69
\nContributions from employer
-
32
32
-
15
15
\nBene\ufb01ts paid
85
(33)
52
40
(23)
17
\nOther changes
3
-
3
-
-
-
\nCurrency translation di\ufb00erences
(36)
18
(19)
(5)
16
10
\nClosing balance
(754)
425
(329)
(978)
487
(492)
\nBreakdown of pension plan assets
31.12.2022
31.12.2021
\nAmounts in NOK million
\nFair value of
\nDistribution%
plan assets
\nFair value of
\nDistribution%
plan assets
\nCash, cash equivalents and money market investments
\nBonds
\nShares
\nProperty
\nOther plan assets
\n1)
\nTotal pension plan assets
\n12 %
\n15 %
\n36 %
\n35 %
\n3 %
\n100 %
\n52
\n62
\n152
\n147
\n12
\n425
\n11 %
\n19 %
\n38 %
\n30 %
\n1 %
\n100 %
\n55
\n95
\n185
\n148
\n4
\n487
\n1)
\nIncludes insurance contracts (Buy in policies and Annuity insured contracts)
\nActual return on plan assets
-16.0 %
(78)
4.3 %
20
\nIn addition, some Norwegian entities have pension
\ncontribution funds, mainly based on excess pension assets
\nfrom settlement of the de\ufb01ned bene\ufb01t plans in 2010. The
\npension contribution funds are classi\ufb01ed as non-current
\npension funds, except next year's expected contributions
\nwhich are classi\ufb01ed as current (see note 22 Other assets)
\nPrincipal assumptions used for the actuarial valuations in
\n2022 (2021)
\nNorway
France
Canada
Germany
UK
\nDiscount rate
4.2%
(2.0%)
3.0%
(0.9%)
5.0%
(3.0%)
3.9%
(1.0%)
5.1%
(1.6%)
\nExpected rate of salary increase
na
(na)
3.0%
(2.1%)
3.5%
(3.5%)
3.0%
(3.0%)
na
(na)
\nAnnual regulation of pensions paid
1.9%
(1.5%)
na
(na)
na
(na)
2.0%
(2.0%)
na
(na)
\nAssumptions regarding future mortality are based on actuarial
\nadvice in accordance with published statistics and experience
\nin each country.
\nSensitivity on pension obligations based on changes in main
\nactuarial assumptions
\nThe de\ufb01ned bene\ufb01t pension schemes expose the group to
\nactuarial risk such as investment risk, interest rate risk, salary
\ngrowth risk, mortality risk and longevity risk.
\nA decrease in corporate bond yields, a rise in in\ufb02ation or
\nan increase in life expectancy would result in an increase
\nto plan liabilities.
\nThe sensitivity analysis below shows estimated e\ufb00ects in the
\nde\ufb01ned pension obligation based on reasonable changes in
\nthe main assumptions.
\nThe calculations are based on a change in one assumption while
\nholding all other assumptions constant. Negative amounts show
\nan expected decrease in the net pension liability.
\nAssumption
\nDiscount rate
Life expectancy
Salary growth
\n0.5%
0.5%
1 year
1 year
0.5%
0.5%
\nAmounts in NOK million
increase
decrease
increase
decrease
increase
decrease
\n2022: E\ufb00ect on the pension obligation
(38)
42
14
(15)
10
(10)
\n2021: E\ufb00ect on the pension obligation
(63)
71
25
(25)
24
(22)
\nAs the group's main pension plans are de\ufb01ned contribution
\nplans, there are no group policies for funding of the de\ufb01ned
\nbene\ufb01t plans. This is managed locally, based on the terms
\nand status for the individual plan.
\nExpected contribution for the pension plans next year and
\naverage duration for the main de\ufb01ned bene\ufb01t plans
\nAmounts in NOK million
Norway
France
Canada
Germany
UK
\nContribution to be paid to de\ufb01ned pension plans next year
5
18
19
3
5
\nWeighted average duration of the de\ufb01ned bene\ufb01t obligations
6 years
14 years
17 years
11 years
11 years
(c) Other bene\ufb01t plans
\nOther employee bene\ufb01ts consist of provisions related to jubilee
\nand long-service bene\ufb01ts, and post-employment bene\ufb01ts to
\nbe paid until ordinary retirement age for former employees in
\nElkem\u2019s Chinese entities.
\nOf total non-current provisions, NOK 64 million (NOK 74
\nmillion) relate to jubilee and long-service bene\ufb01ts in the
\nSilicones segment, mainly in France. Estimated duration of
\nthe obligation is 13 years. Non-current provisions for other
\nemployee bene\ufb01ts for Elkem\u2019s Chinese entities, in the Silicones
\nsegment, are calculated to NOK 35 million (NOK 30 million),
\nmainly consisting of post-employment bene\ufb01ts related to
\nemployees laid o\ufb00 due to reorganisation. No further obligations
\nare expected to incur however in 2022 an addition of NOK 13
\nmillion has incurred related to update of estimate for future
\nhealth insurance premiums. The estimated remaining duration
\nfor these two obligations is 16 years.
\n10. Share-based payment
\nPrinciple
\nThe fair value of options granted under the share-based
\npayment programme is recognised as an employee bene\ufb01t
\nexpense with a corresponding increase in equity for equity
\nsettled awards. The total amount to be expensed is determined
\nby reference to the fair value of the options granted. The total
\nexpense is recognised over the vesting period, which is the
\nperiod over which all of the speci\ufb01ed vesting conditions are
\nto be satis\ufb01ed. At the end of each period, the entity revises its
\nestimates of the number of options that are expected to vest
\nbased on the non-market vesting and service conditions. It
\nrecognises the impact of the revision to original estimates, if
\nany, in the statement of pro\ufb01t or loss, with a corresponding
\nadjustment to equity.
\nSocial security contributions payable in connection with an
\noption grant are considered an integral part of the grant itself
\nand the charges are treated as cash-settled transactions.
\nJudgements and estimates
\nEstimating fair value for share based payment transactions
\nrequires determination of the most appropriate valuation
\nmodel and assumptions to the valuation model. The fair value
\nat the grant date is determined using the Black-Scholes option
\npricing model, which takes into account the exercise price, the
\nlife of the option, the current price of the underlying shares, the
\nexpected volatility of the share price, any dividends expected
\non the shares and risk-free interest rate for the life of the
\noption. The expected share price volatility is based on historical
\nvolatility for a selection of comparable listed companies
\nadjusted with a premium taking into account the maturity of
\nthe peers compared to the Elkem. The risk-free interest rate is
\nbased on Norwegian government bonds with same maturity as
\nthe option.
\nElkem's share option scheme
\nThe group has in 2018 - 2021 granted share options to
\ncorporate management and selected key employees. Each
\noption gives the right to acquire one share in Elkem ASA
\non exercise. In 2022 the Board decided to terminate the
\noption scheme and replace it with a new Long-term Bonus
\nScheme (LTBS). Please refer to the \"Report on salary and
\nother remuneration to leading personnel in Elkem ASA for the
\n\ufb01nancial year 2022\" for description of the new bonus scheme.
\nThe previous granted options are still exercisable over the
\nexercise period.
\nThe share options vest annually in equal tranches over a three-
\nyear period following the date of grant, with one-third vesting
\neach year. The options will expire two years after vesting, in
\ntotal 5 years after the date of grant. No option holder may in
\nany calendar year realise a total gain on exercise of options
\nin excess of twice the option holder's base salary in the same
\ncalendar year, however provided that the maximum gain for
\nElkem's CEO shall be four times the CEO's base salary. See
\nnote 9 Employee bene\ufb01ts for an overview of options granted to
\nElkem's corporate management.
\nWhen the options are exercised, the corresponding number of
\nshares are transferred to the employee. The proceeds received
\nfrom the exercise of the options (net of any directly attributable
\ntransaction costs) are credited directly to equity.
\nComponents of share-based payments employee bene\ufb01t expenses
\nAmounts in NOK million
\n2022
\n2021
\nShare-based payment
\n(24)
\n(28)
\nSocial security contribution
\n(9)
\n(16)
\nTotal expenses related to share-based payments
\n(33)
\n(44)
\nParameters connected to share options granted in years respectively
\nAmounts in NOK million
\n2021
2020
2019
\nNumber of options granted
\n7 451 000
8 000 000
8 000 000
\nDate of Grant
\n29 Jul 2021
29 Jul 2020
29 Jul 2019
\nExercise price (NOK)
\n31.2
19.1
23.5
\nShare price (NOK)
\n32.9
17.2
24.7
\nExpected lifetime*
\n3.34
3.12
3.12
\nVolatility*
\n34.4 %
46.0 %
35.8 %
\nInterest rate*
\n0.9 %
0.2 %
1.3 %
\nDividend*
\n6.5 %
6.5 %
6.5 %
\nFV per instrument*
\n5.19
2.95
4.08
\nVesting conditions
\nService
Service
Service
\n*Weighted average parameters of instruments
\nOutstanding instruments
\n31 December 2022
31 December 2021
\nNumber of
Number of
\nGrant
instruments
Remaining
instruments
Remaining
\nAmounts in NOK million
Exercise price
outstanding
contractual life
outstanding
contractual life
\n2018 programme
38.52
2 300 000
0.72
4 650 000
1.21
\n2019 programme
23.53
612 688
1.57
2 967 500
2.37
\n2020 programme
19.10
2 945 140
2.38
5 411 272
2.94
\n2021 programme
31.20
5 778 375
2.85
7 451 000
3.58
\nTotal outstanding
11 636 203
2.24
20 479 772
2.70
Quantity and weighted average prices
\n31 December 2022
31 December 2021
\nOverview of outstanding options
\nAmounts in NOK million
\nNumber of
\ninstruments
\nWeighted average
\nexercise price
\nNumber of
\ninstruments
\nWeighted average
\nexercise price
\nOutstanding options 1 January
20 479 772
28.55
\n22 767 000
26.76
\nGranted during the year
-
-
\n7 451 000
31.20
\nExercised during the year
(6 443 569)
23.97
\n(6 271 228)
22.16
\nForfeited during the year
(200 000)
30.01
\n(900 000)
21.16
\nExpired during the year
(2 200 000)
38.52
\n(2 567 000)
38.52
\nOutstanding options 31 December
11 636 203
29.18
\n20 479 772
28.55
\nOf which exercisable (vested)
4 368 870
32.47
\n5 728 772
35.30
\nAverage share price at exercise date (NOK per share)
37.64
34.00
\n11. Other operating expenses
\nDetails of operating expenses
\nAmounts in NOK million
2022
2021
\nLoss on disposal of \ufb01xed assets
(2)
(5)
\nFreight and commission expenses
(2 395)
(1 661)
\nLeasing short-term and low value contracts (note 16)
(70)
(56)
\nMachinery, equipment, spare parts and operating materials
(1 344)
(1 336)
\nExternal services
\n1)
\n(2 441)
(2 051)
\nInsurance expenses
(137)
(106)
\nImpairment losses trade and other receivables
(2)
9
\nOther operating expenses
\n2) 3)
\n(324)
(330)
\nTotal other operating expenses
(6 714)
(5 536)
\n1)
\nIncluding services from auditor, see speci\ufb01cation below
\n2)
\nIncluding changes in inventories of \ufb01nished goods and work in progress of positive NOK 288 million (positive NOK 1 million)
\n3)
\nIncluding capitalised salary on \ufb01xed asset projects of positive NOK 125 million (positive NOK 114 million)
\nResearch and development
\nDuring 2022, Elkem expensed NOK 1,000 million (NOK 716
\nmillion) related to research and innovation activities, which
\nincludes product and business development, technical
\ncustomer support and improvement projects. In addition,
\nElkem capitalised development expenses of NOK 312 million
\n(NOK 300 million).
\nGrants relating to research and development amount to NOK
\n143 million (NOK 132 million) and are recognised in other
\noperating income. In addition NOK 91 million (NOK 15 million)
\nis recognised as a reduction of intangible assets.
\nAudit fees
\nKPMG is the group auditor of Elkem.
\nFees to KPMG and other audit \ufb01rms
\nAmounts in NOK million
2022
2021
\nKPMG
\nAudit fee
(19)
(19)
\nOther assurance services
(1)
(1)
\nTax services
-
(0)
\nOther services
-
-
\nOther audit \ufb01rms
\nAudit fee
(2)
(2)
\nOther assurance services
(0)
(0)
\nTax services
(2)
(1)
\nOther services
(0)
(1)
\nTotal fees to KPMG and other audit \ufb01rms
(25)
(24)
\nFees to auditors are reported exclusive of VAT.
\n12. Other items
\nPrinciple
\nOther gains (losses)
\nOther gains (losses) consists of changes in fair value of \ufb01nancial
\ninstruments that are not designated as a part of a hedging
\nrelationship, any ine\ufb00ective part of hedging relationships,
\ne\ufb00ects from discontinuation of hedging and foreign exchange
\ngains (losses) related to operating activities such as trade
\nreceivables, trade payables, bank accounts / overdrafts. Foreign
\nexchange gains (losses) related to \ufb01nancing activities, mainly
\ninterest-bearing liabilities and group loans, are classi\ufb01ed as a
\npart of \ufb01nancial income and expenses.
\nOther income (expenses)
\nOther income and (expenses) consists of transactions and
\nevents that are related to acquisition of business, gains /
\n(losses) on disposal of businesses, restructuring programme
\nand pro\ufb01t and loss e\ufb00ects from other shares. In addition,
\nperformance incentives for Elkem employees related to such
\nitems. Cost related to liquidated / wound-up businesses, costs
\nof public requirements or updated regulations related to events
\n/ periods before purchase of the business, e.g., environmental
\nmeasures, are included in other income and expenses.
\nAcquisition related costs may include both costs related to
\nacquisitions done, not completed and cancelled projects.
\nInvestments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares. Dividends from
\nsuch shares are recognised when shareholders' right to receive
\ndividends is determined by the shareholder's meeting. Fair
\nvalue changes in other shares related to listed companies are
\nrecognised as other income (expenses).
Details of other items
\nAmounts in NOK million
2022
2021
\nChanges in fair value commodity contracts (note 25)
\nNet gains (losses) on embedded EUR derivatives power contracts (note 25)
\nIne\ufb00ectiveness on cash \ufb02ow hedges (note 26)
\nNet foreign exchange gains (losses) - forward currency contracts
\nOperating foreign exchange gains (losses)
\n(2)
\n218
\n1 471
\n9
\n387
\n(1)
\n3
\n127
\n14
\n20
\nTotal other gains (losses)
2 084
163
\nDividends from other shares
\nChange in fair value from other shares measured at fair value through pro\ufb01t or loss
\nGains (losses) on acquisition and disposal of subsidiaries
\nRestructuring expenses (note 24)
\nDismantling and environmental expenses (note 24)
\n1)
\nOther
\n2)
\n4
\n1
\n159
\n26
\n(72)
\n(50)
\n3
\n2
\n-
\n41
\n(181)
\n(17)
\nTotal other income (expenses)
67
(153)
\nTotal other items
2 151
10
\n1)
\n2022 includes NOK 70 million in restoration expense related to decommissioned business in Canada. 2021 Includes NOK 171 million related to
\nexpenses in connection with relocation of workers buildings located in proximity to the Silicones Xinghuo plant, as required by the authorities.
\n2)
\nMainly expenses related to business projects and acquisitions
\n13. Finance income and expenses
\nPrinciple
\nInterest income is recognised on an accrual basis and is
\nclassi\ufb01ed as \ufb01nance income.
\nForeign exchange gains (losses) related to \ufb01nancing activities
\nincluding group loans are classi\ufb01ed as a part of \ufb01nancial
\nincome and expenses, and foreign exchange gains (losses)
\nrelated to operations are classi\ufb01ed as a part of other items.
\nInterest expenses are recognised on an accrual basis using
\nthe e\ufb00ective interest method and are classi\ufb01ed as \ufb01nancial
\nexpenses. Interest is capitalised as a part of the carrying
\namount of a self-constructed item of property, plant and
\nequipment when the construction period takes a substantial
\nperiod of time, meaning more than 9-12 months, depending on
\nthe total amount, and borrowing costs are being incurred.
\nFinancial expenses also include interest on net pension
\nliabilities, unwinding of discounted provisions and contingent
\nconsideration acquisition of subsidiaries, and interest on lease
\nliabilities.
\nDetails of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
\n14. Taxes
\nPrinciple
\nIncome taxes
\nCurrent tax assets and liabilities are measured at the amount
\nexpected to be recovered from or paid to the tax authorities.
\nCurrent tax payables includes any adjustment to tax payable
\nin respect of previous years. Income tax is recognised in the
\nstatement of pro\ufb01t or loss except to the extent that it relates to
\nitems recognised directly in equity or in other comprehensive
\nincome. The group includes deductions for uncertain tax
\npositions when it is probable that the tax position will be
\nsustained in a tax review. The group records provisions relating
\nto uncertain or disputed tax positions at the amount expected
\nto be paid. The provision is reversed if the disputed tax position
\nis settled in favour of the group and can no longer be appealed.
\nPenalties and interest related to income taxes are recognised as
\nincome tax (expense) bene\ufb01t in the statement of pro\ufb01t or loss.
\nAccrued penalties and interest are recognised in the statement
\nof \ufb01nancial position in income tax payable and provisions for
\nthe current and non-current portions respectively.
\nDeferred tax
\nDeferred tax assets and liabilities are calculated using the
\nliability method with full allocation of all temporary di\ufb00erences
\nbetween the tax base and the carrying amount of assets
\nand liabilities in the \ufb01nancial statements, including tax
\nlosses carried forward. Deferred tax relating to items outside
\nstatement of pro\ufb01t or loss are recognised in correlation with
\nthe underlying transaction either in other comprehensive
\nincome or directly in equity. Deferred tax assets and liabilities
\nare not recognised if the temporary di\ufb00erence arises from
\nthe initial recognition of goodwill. Deferred tax assets are
\nrecognised in the statement of \ufb01nancial position to the extent
\nthat it is more likely than not that the tax assets will be utilised
\nagainst deferred tax liabilities or future taxable income.
\nDeferred tax assets arising from tax losses are recognised
\nwhen there is convincing evidence of recoverability. The tax
\nrates substantively enacted at the end of the reporting period
\nand undiscounted amounts are used. Deferred tax assets
\nand liabilities are o\ufb00set if there is a legally enforceable right
\nto o\ufb00set current tax liabilities and assets, and Elkem intends
\nto settle current tax liabilities and assets on a net basis, or to
\nrealise the tax assets and settle the liabilities simultaneously.
\nDeferred tax assets are reviewed at each reporting date and
\nare reduced to the extent that it is no longer probable that the
\nrelated tax bene\ufb01t will be realised; such reductions are reversed
\nwhen the probability of future taxable pro\ufb01ts improves.
Judgements and estimates
\nPart of the basis for recognising deferred tax assets is based on
\napplying the loss carried forward against future taxable income
\nin the group, which requires use of estimates for calculating
\nfuture taxable income. Deferred tax assets are not recognised
\nfor start-up projects and entities with longer periods of losses
\nunless there is convincing evidence of recoverability. Elkem
\nrecognises a previously unrecognised deferred tax asset to the
\nextent that it has become probable that future taxable pro\ufb01t will
\nallow the deferred asset to be recovered. For example, when
\nstart up projects becomes pro\ufb01table or the market condition
\nhas changed so the entity has longer periods with historic
\ntaxable pro\ufb01ts and future forecasted taxable pro\ufb01ts. When
\nestimating uncertain tax positions the most probable amount,
\nincluding interests and penalties, is used because in most cases
\nthe outcome of the tax review is binary.
\nIncome tax recognised in pro\ufb01t or loss
\nAmounts in NOK million
\n2022
2021
\nPro\ufb01t (loss) before income tax
\nCurrent taxes
\nDeferred taxes
\nTotal income tax (expense) bene\ufb01t
\n12 236
\n(2 234)
\n(360)
\n(2 594)
\n5 827
\n(1 145)
\n(18)
\n(1 163)
\nIncome taxes recognised in other comprehensive income (OCI)
\nAmounts in NOK million
\n2022
2021
\nRemeasurement of de\ufb01ned bene\ufb01t pension plans
\n(33)
(10)
\nHedging of net investment in foreign operations
\n31
(29)
\nCash \ufb02ow hedges
\n(125)
(153)
\nTotal tax charged to OCI
\n(127)
(192)
\nReconciliation of income tax (expense) bene\ufb01t
\nAmounts in NOK million
2022
2021
\nPro\ufb01t (loss) before income tax
\nExpected income taxes, 22% of pro\ufb01t before tax (22%)
\nTax e\ufb00ects of:
\nDi\ufb00erence in tax rates for each individual jurisdiction
\nPreferential tax rates
\nPermanent di\ufb00erences
\nTax e\ufb00ects of income from Norwegian controlled foreign companies (NOKUS)
\nTax e\ufb00ects share of pro\ufb01t (loss) from equity accounted companies
\nTax e\ufb00ects non-deductible expenses
\nTax relief based on value of equity
\nTax e\ufb00ects gains (losses) on acquisition and disposal of subsidiaries
\nTax e\ufb00ects non-taxable income
\nOther e\ufb00ects
\nTax e\ufb00ects of changes in unrecognised deferred tax assets
\nTax e\ufb00ects of change in tax rate
\nOther current taxes paid
\nPrevious year tax adjustment
\nTotal income tax (expense) bene\ufb01t
\n12 236
\n(2 692)
\n(99)
\n61
\n(16)
\n24
\n(12)
\n19
\n34
\n134
\n(32)
\n-
\n(10)
\n(5)
\n(2 594)
\n5 827
\n(1 282)
\n(94)
\n12
\n(8)
\n19
\n(24)
\n18
\n-
\n76
\n157
\n(19)
\n(35)
\n15
\n(1 163)
\nE\ufb00ective tax rate
21 %
20 %
\nThree companies in China are taxed under the regulations for
\n\"High and new technology company\" which mean that the
\ntax rate is 15% compared to the regular 25%. The companies
\nhave to con\ufb01rm to the authorities every year that they ful\ufb01l the
\nconditions for \"High and new technology company\" in order to
\napply the preferential tax rate.
\nTax e\ufb00ect of non-taxable income is mainly related to R&D,
\nadditional R&D deduction and non-taxable R&D grants, and
\nadditional deduction on investments in \ufb01xed assets equipment.
\nOther current taxes paid relates mainly to taxes that are
\nindirectly calculated based on pro\ufb01t (loss) before income tax
\nand withholding taxes on dividends.
\nDeferred tax assets and deferred tax liabilities
\n31.12.2022
31.12.2021
\nAmounts in NOK million
\nTemporary
\ndi\ufb00erence
Deferred tax
\nTemporary
\ndi\ufb00erence
Deferred tax
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nPension liabilities
\nTrade receivables
\nInventories
\nProvisions
\nOther di\ufb00erences
\nDebt waiver
\nTax losses carried forward
\nGross deferred tax assets
\n-
\n412
\n325
\n92
\n998
\n364
\n458
\n595
\n2 901
\n6 145
\n-
\n69
\n79
\n7
\n222
\n72
\n93
\n161
\n648
\n1 351
\n17
\n795
\n465
\n89
\n639
\n208
\n302
\n595
\n2 353
\n5 463
\n4
\n198
\n121
\n16
\n157
\n53
\n68
\n161
\n582
\n1 359
\nUnrecognised deferred tax assets for tax loss carried forward
\nUnrecognised debt waiver
\nUnrecognised deferred tax assets other items
\n(2 398)
\n(595)
\n(1 264)
\n(520)
\n(161)
\n(190)
\n(1 960)
\n(595)
\n(1 361)
\n(486)
\n(161)
\n(340)
\nRecognised deferred tax assets
1 888
480
1 548
372
\nNetting
(329)
(324)
\nNet deferred tax assets
151
48
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nInventories
\nOther di\ufb00erences
\n2 162
\n3 451
\n284
\n683
\n476
\n775
\n62
\n139
\n560
\n2 734
\n210
\n243
\n123
\n610
\n46
\n50
\nGross deferred tax liabilities
6 580
1 452
3 748
828
\nNetting
(329)
(324)
\nNet deferred tax liabilities
1 123
505
\nNet deferred tax (liabilities) assets recognised
(972)
(457)
\nUnrecognised deferred tax assets other items, are mainly
\nrelated to property, plant and equipment and inventories. The
\ntax assets are not recognised due to uncertainty regarding
\nfuture taxable income and the long period for which the tax
\nasset shall be amortised.
Movements in net deferred tax assets and deferred tax liabilities
\nAmounts in NOK million
2022
2021
\nOpening balance
(457)
(240)
\nRecognised in pro\ufb01t or loss for the year
(360)
(18)
\nE\ufb00ect of business combination
(20)
-
\nDisposal of subsidiaries
2
-
\nRecognised in other comprehensive income
(127)
(192)
\nCurrency translation di\ufb00erences
(10)
(7)
\nClosing balance
(972)
(457)
\nTax losses carried forward
\n31 December 2022
\nGross tax losses
Net tax losses
Unrecognised tax
Recognised deferred tax
\nAmounts in NOK million
carried forward
carried forward
losses
losses carried forward
\nFrance
1 803
451
(337)
114
\nChina
490
74
(73)
-
\nBrazil
175
59
(59)
-
\nParaguay
295
30
(31)
-
\nMalaysia
61
15
(14)
-
\nUS
56
14
-
14
\nCanada
18
5
(5)
-
\nMexico
3
1
(1)
-
\nTotal tax losses to carried forward
2 901
649
(520)
128
\nTax losses carried forward
\n31 December 2021
\nGross tax losses
Net tax losses
Unrecognised tax
Recognised deferred tax
\nAmounts in NOK million
carried forward
carried forward
losses
losses carried forward
\nFrance
1 602
431
(347)
84
\nChina
183
39
(28)
11
\nBrazil
170
58
(58)
-
\nMalaysia
96
23
(23)
-
\nParaguay
298
29
(29)
-
\nCanada
3
1
(1)
-
\nMexico
1
0
(0)
-
\nTotal tax losses to carried forward
2 353
582
(486)
95
\nTax losses carried forward by expiry date
\n31.12.2022
31.12.2021
\nTotal
Total
Total
Total
\nunrecognised
recognised
unrecognised
recognised
\nAmounts in NOK million
losses
losses
losses
losses
\nLoss car.forw.which exp. within 1 year
(3)
-
-
-
\nLoss car.forw.which exp. within 2 years
(5)
-
-
-
\nLoss car.forw.which exp. within 3 years
(9)
-
-
-
\nLoss car.forw.which exp. within 4 years
(10)
-
(29)
-
\nLoss car.forw.which exp. within 5 years
(70)
-
-
-
\nLoss car.forw.which exp. within 5-10 years
(7)
-
-
11
\nWithout maturity
(416)
128
(458)
84
\nTotal tax losses carried forward
(520)
128
(486)
95
\nPending tax issues with tax authorities
\nThe Norwegian Tax O\ufb03ce decided in February 2021 to increase
\nElkem ASA\u2019s taxable income for the \ufb01scal years 2016-2019 by in
\ntotal NOK 781 million, which would have lead to an increase in
\nthe income tax expense of NOK 181 million. The reassessments
\nrelate to loan arrangements / debt waiver agreements acquired
\nby Elkem ASA in 2016 through the cross-border parent-
\nsubsidiary merger with Bluestar Silicones International Sarl.
\nElkem is of the opinion that the reassessment is unfounded
\nand will appeal. Based on legal advice, Elkem\u2019s assessment is
\nthat the defence against the action will be successful, and the
\nincrease in taxable income is therefore not recognised in pro\ufb01t
\nor loss. The amount was paid in \ufb01rst quarter of 2021 and a
\ncorresponding receivable for the paid income tax is recognised
\nin 2021, see note 22 Other assets.
\nDebt waiver
\nElkem Silicones France SAS has four Elkem internal debt
\nwaiver agreements where internal loans were converted to
\nequity and the converted amounts were treated as taxable
\nincome. Elkem Silicones France SAS can only reinstate the
\nloans to the extent that the company has an accounting
\npro\ufb01t according to IFRS. All debt that is reinstated under the
\nagreements can be deducted against taxable income. The
\ngross taxable value of the agreements as of 31 December 2022
\nis NOK 595 million (NOK 595 million). Elkem Silicones France
\nSAS has not reinstated any loan amounts in 2022 or 2021 and
\ncorrespondingly no tax credit is recognised in 2022 or 2021.
\nDebt waiver 31 December 2022
\nAmounts in NOK million
2010
2012
2013
2014
Total
\nGross value of debt waiver
54
186
149
207
595
\nUtilised 2022
-
-
-
-
-
\nTotal debt that can be reversed
54
186
149
207
595
\nDeferred tax asset unrecognised
\n1)
\n15
50
40
56
161
\nThe respective agreements expire in
3 years
5 years
6 years
7 years
Debt waiver 31 December 2021
\nAmounts in NOK million
2010
2012
2013
2014
Total
\nGross value of debt waiver
54
186
149
207
595
\nUtilised 2021
-
-
-
-
-
\nTotal debt that can be reversed
54
186
149
207
595
\nDeferred tax asset unrecognised
\n1)
\n15
50
40
56
161
\nThe respective agreements expire in
4 years
6 years
7 years
8 years
\n1)
\nBased on tax rate 27.0% (28.4% ), which is applicable in France.
\n15. Property, plant and equipment
\nPrinciple
\nProperty, plant and equipment
\nProperty, plant and equipment (PPE) are stated in the
\nconsolidated statement of \ufb01nancial position at cost less
\naccumulated depreciation and accumulated impairment
\nlosses. PPE acquired in business combinations are recognised
\nat fair value at the acquisition date. PPE acquired in a business
\ncombination under common control are re\ufb02ected at their
\ncarrying amounts. Assets in the course of construction are
\ncarried at cost less any recognised impairment loss. Such
\nassets are classi\ufb01ed to the appropriate categories of PPE when
\ncompleted and ready for the intended use. When signi\ufb01cant
\nparts of an item of PPE have di\ufb00erent useful lives, they are
\naccounted for as separate items.
\nInitial cost includes expenditures that are directly attributable
\nto the acquisition of the asset, cost of materials, direct labour,
\nany other costs directly attributable to bringing the assets
\nto working condition for their intended use and estimated
\ndismantling or removal charges.
\nSubsequent costs are included in the asset's carrying amount
\nor recognised as a separate asset, as appropriate, when future
\nbene\ufb01ts are probable and the cost can be measured reliably.
\nThe carrying amount of the replaced part is derecognised.
\nMajor periodic maintenance that is carried out less frequently
\nthan every year, is capitalised and depreciated over the period
\nuntil the next periodic maintenance is performed. All other
\nrepairs and maintenance are charged to the statement of pro\ufb01t
\nor loss when incurred.
\nDepreciations are calculated based on estimated useful life
\nand expected residual value for each item of PPE and are
\nrecognised in the statement of pro\ufb01t or loss using the straight-
\nline method. The estimated useful lives, residual values (if
\nany) and depreciation method are reviewed, and if necessary
\nadjusted, at least annually. Depreciation commences when the
\nassets are ready for their intended use.
\nAn item of PPE is derecognised upon disposal or when no
\nfuture economic bene\ufb01ts are expected to arise from the
\ncontinued use of the asset. Any gain or loss arising on disposal
\nor retirement of PPE, determined as the di\ufb00erence between
\nthe sales proceeds and the carrying amount of the asset, is
\nrecognised under other operating income or other operating
\nexpenses in the statement of pro\ufb01t or loss.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.
\nJudgements and estimates
\nEstimated useful lives, residual values (if any) included
\nin calculation of depreciation of PPE are reviewed and, if
\nnecessary, adjusted at least annually.
\nDetails of property, plant and equipment
\n2022
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposal of subsidiaries (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n217
\n1
\n2
\n-
\n1
\n-
\n(0)
\n13
\n8 064
\n13
\n475
\n1
\n185
\n-
\n(10)
\n229
\n23 043
\n34
\n1 271
\n1
\n749
\n-
\n(384)
\n691
\n866
\n5
\n181
\n(6)
\n0
\n-
\n(9)
\n40
\n2 819
\n4 091
\n(1 929)
\n(40)
\n7
\n(29)
\n(12)
\n116
\n35 009
\n4 143
\n-
\n(43)
\n942
\n(29)
\n(415)
\n1 088
\nClosing balance
233
8 957
25 406
1 078
5 022
40 696
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 999)
\n(263)
\n0
\n8
\n(68)
\n(13 085)
\n(1 293)
\n(1)
\n306
\n(365)
\n(430)
\n(137)
\n1
\n6
\n(20)
\n(16 514)
\n(1 693)
\n0
\n321
\n(453)
\nClosing balance
(3 322)
(14 437)
(580)
(18 339)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n(1)
\n(419)
\n(10)
\n6
\n0
\n(13)
\n(2 315)
\n(13)
\n(6)
\n44
\n(68)
\n(1)
\n(0)
\n(0)
\n0
\n(0)
\n(28)
\n(5)
\n-
\n4
\n(1)
\n(2 774)
\n(28)
\n(0)
\n48
\n(82)
\nClosing balance
(11)
(435)
(2 358)
(1)
(30)
(2 836)
\nCarrying amount
\nClosing balance
222
5 200
8 610
497
4 991
19 520
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n2 738
\n5\u201350 years
\nStraight-line
\n6 592
\n3\u201350 years
\nStraight-line
\n252
\n3\u201320 years
\nStraight-line
\n-
9 583
\nCapitalised interest is NOK 20 million in 2022. The weighted
\naverage cost of capital for capitalisation of loan interest in
\n2022 is in the range of 2.5% and 3.7% per annum.
Details of property, plant and equipment
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n184
\n17
\n21
\n-
\n-
\n(0)
\n(5)
\n7 474
\n55
\n344
\n7
\n-
\n(21)
\n205
\n21 720
\n67
\n1 122
\n1
\n-
\n(290)
\n423
\n582
\n132
\n186
\n(14)
\n-
\n(12)
\n(8)
\n1 799
\n2 762
\n(1 674)
\n(105)
\n-
\n(6)
\n42
\n31 759
\n3 033
\n-
\n(110)
\n-
\n(328)
\n656
\nClosing balance
217
8 064
23 043
866
2 819
35 009
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 738)
\n(236)
\n(6)
\n17
\n(37)
\n(11 929)
\n(1 211)
\n(2)
\n228
\n(171)
\n(377)
\n(76)
\n9
\n10
\n4
\n(15 043)
\n(1 523)
\n1
\n255
\n(203)
\nClosing balance
(2 999)
(13 085)
(430)
(16 514)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n0
\n(384)
\n(9)
\n-
\n0
\n(25)
\n(2 162)
\n(54)
\n(0)
\n35
\n(134)
\n(0)
\n(1)
\n0
\n0
\n(0)
\n(26)
\n(3)
\n-
\n2
\n(2)
\n(2 584)
\n(67)
\n-
\n38
\n(160)
\nClosing balance
(11)
(419)
(2 315)
(1)
(28)
(2 774)
\nCarrying amount
\nClosing balance
206
4 646
7 644
435
2 790
15 722
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n1 368
\n5\u201350 years
\nStraight-line
\n6 455
\n3\u201350 years
\nStraight-line
\n126
\n3\u201320 years
\nStraight-line
\n-
7 950
\nCapitalised interest is NOK 5 million in 2021. The weighted
\naverage cost of capital for capitalisation of loan interest in 2021
\nis in the range of 2.5% and 3.1% per annum.
\nElkem has decided to transfer the production at Elkem Carbon
\nMalaysia to other Elkem Carbon Solutions production sites.
\nAn impairment loss of NOK 60 million was recognised in
\n2021 due to the transfer, of which NOK 55 million is related
\nto impairment of property, plant and equipment and NOK
\n5 million to right-of-use assets. The impairment loss of PPE
\nis mainly related to plant, machinery, equipment and motor
\nvehicles and buildings and other property.
\n16. Leases
\nPrinciple
\nRight-of-use assets are presented separately in the statement
\nof \ufb01nancial position, whereas lease liabilities are recognised in
\ninterest-bearing liabilities.
\nRight-of-use-assets
\nElkem`s policy in general is to own critical assets related to
\nthe production cycle, including production buildings and
\nland where this is not controlled by the local government or
\nother parties. The group`s main lease contracts comprise
\no\ufb03ce buildings and machinery / storage assets to be used at
\nproduction sites. The less signi\ufb01cant lease contracts comprise
\nemployee cars, machinery and equipment.
\nElkem assesses at contract inception whether a contract is,
\nor contains, a lease. That is, if the contract conveys the right
\nto control the use of an identi\ufb01ed asset for a period of time in
\nexchange for consideration.
\nElkem applies single recognition and measurement approach
\nfor all leases, except for:
\n\u2192
Lease contracts for which the lease term ends within
\n12 months as of the date of initial application are not
\ncapitalised (short-term leases). Elkem's short-term
\nlease commitments are mainly related to rental
\nof equipment in connection with maintenance or
\ninstallation of new equipment.
\n\u2192
Lease contracts for which the underlying asset is of low
\nvalue, mainly o\ufb03ce equipment, are not capitalised.
\n\u2192
Lease of intangible assets are not capitalised.
\n\u2192
Lease payments on contracts that are not capitalised
\nare recognised as other operating expenses on a straight-
\nline basis over the lease term.
\nElkem recognise right-of-use assets at the commencement
\ndate of the lease (i.e., the date the underlying assets is
\navailable for use). Right-of-use assets are measured at cost,
\nless any accumulated depreciation and impairment losses, and
\nadjusted for any remeasurement of lease liabilities. The cost
\nof right-of-use assets includes the amount of lease liabilities
\nrecognised, initial direct costs incurred, and lease payments
\nmade at or before the commencement date less any lease
\nincentives received. Right-of-use assets are depreciated on a
\nstraight-line basis from the commencement date to the earlier
\nof the lease term and the remaining useful life of the right-of-
\nuse asset for assets where Elkem does not obtain ownership
\nof the leased asset at the end of the lease term. Depreciation
\nexpense on the right-of-use asset is presented as depreciation
\nin the statement of pro\ufb01t or loss. Right-of-use assets are
\nsubject to impairment assessments as described in note 19
\nImpairment assessment.
\nLease liabilities
\nAt the commencement date of a lease, Elkem recognise
\nlease liabilities measured at the present value of the lease
\npayments to be made over the lease term. The lease payments
\ninclude \ufb01xed payments (less any lease incentives receivable),
\nvariable lease payments that depend on an index or a rate, and
\namounts expected to be paid under residual value guarantees.
\nNon-lease components like insurance, electricity and other
\nproperty-related expenses to be paid to landlord are excluded
\nfrom the lease commitment for o\ufb03ces. The lease payments
\nalso include the exercise price of a purchase option reasonably
\ncertain to be exercised by Elkem and payments of penalties
\nfor terminating the lease, if the lease term re\ufb02ects exercising
\nthe option to terminate. Variable lease payments that do not
\ndepend on an index or a rate are recognised as expenses in
\nthe period in which the event or condition that triggers the
\npayment occurs. Elkem uses the incremental borrowing rate
\nat the lease commencement date if the interest rate implicit
\nin the lease cannot be readily determined. The incremental
\nborrowing rate is based on the respective country's risk-free
\nrate for the term corresponding to the lease term, adjusted
\nfor own credit risk. Updated incremental borrowing rates are
\napplied to new lease contracts recognised on a quarterly basis.
\nLease liability is remeasured upon the occurrence of certain
\nevents like change in the lease term, lease payments or
\nreassessment of options which in general implies a change in
\nthe carrying amount of the right-of-use asset. If any changes
\nto the contractual terms and conditions; like increase of scope
\nElkem needs to assess whether the change implies a separate
\nlease if the change has a standalone price. The existing right-
\nof-use asset is adjusted if the increase of scope does not
\nindicate a standalone price or for any other modi\ufb01cations.
\nJudgements and estimates
\nThe lease term is determined as the non-cancellable period
\nof a lease, together with any periods covered by an option
\nto extend the lease if Elkem is reasonably certain to exercise
\nthat option and any periods covered by an option to terminate
\nthe lease if the lessee is reasonably certain not to exercise
\nthat option. Elkem's main renewal options relate to lease
\nof buildings for o\ufb03ce and production purpose, included in
\nPlant, buildings and other property, and lease of land and it is
\nreasonably certain that the renewal option will be used. Elkem
\nreassesses the lease term if there is a signi\ufb01cant event or
\nchange in circumstances that is within its control and a\ufb00ects
\nits ability to exercise, or not to exercise, the option to renew.
Details of right-of-use assets
\n2022
\nBuildings
Plant, machinery,
\nand other
equipment and
O\ufb03ce and other
\nAmounts in NOK million
Land
property
motor vehicles
equipment
Total
\nCost
\nOpening balance
432
730
138
11
1 310
\nAdditions / lease modi\ufb01cations / remeasurements
4
105
21
0
131
\nDisposal of subsidiaries (note 4)
(118)
(145)
-
-
(264)
\nPartial or full termination of agreements
(0)
(46)
(15)
(9)
(71)
\nCurrency translation di\ufb00erences
9
15
7
1
31
\nClosing balance
326
659
150
2
1 138
\nAccumulated depreciation
\nOpening balance
(66)
(143)
(75)
(5)
(288)
\nAdditions
(8)
(79)
(32)
(1)
(119)
\nDisposal of subsidiaries (note 4)
8
10
-
-
18
\nReclassi\ufb01cation
(3)
(7)
-
-
(10)
\nPartial or full termination of agreements
0
32
15
5
53
\nCurrency translation di\ufb00erences
(2)
(6)
(4)
(0)
(12)
\nClosing balance
(70)
(191)
(96)
(1)
(359)
\nImpairment losses
\nOpening balance
-
(1)
-
(4)
(5)
\nDisposals
-
1
-
4
5
\nCurrency translation di\ufb00erences
-
(0)
-
(0)
(0)
\nClosing balance
-
(0)
-
-
0
\nCarrying amount
\nClosing balance
256
468
55
1
779
\nEstimated useful life
8\u201399 years
2\u201325 years
2\u20136 years
3-4 years
\nDepreciation plan
Straight-line
Straight-line
Straight-line
Straight-line
\nDetails of right-of-use assets
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant, machinery,
\nequipment and
\nmotor vehicles
\nO\ufb03ce and other
\nequipment
Total
\nCost
\nOpening balance
\nAdditions / lease modi\ufb01cations / remeasurements
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n415
\n0
\n(0)
\n-
\n17
\n529
\n239
\n0
\n(41)
\n2
\n134
\n18
\n0
\n(10)
\n(5)
\n10
\n2
\n(1)
\n-
\n(0)
\n1 087
\n260
\n-
\n(51)
\n14
\nClosing balance
432
730
138
11
1 310
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n(51)
\n(4)
\n(7)
\n-
\n(3)
\n(105)
\n(77)
\n(0)
\n40
\n(1)
\n(53)
\n(34)
\n0
\n9
\n2
\n(3)
\n(2)
\n0
\n-
\n0
\n(212)
\n(116)
\n(7)
\n49
\n(2)
\nClosing balance
(66)
(143)
(75)
(5)
(288)
\nImpairment losses
\nOpening balance
\nAdditions
\nCurrency translation di\ufb00erences
\n-
\n-
\n-
\n-
\n(1)
\n(0)
\n-
\n-
\n-
\n-
\n(4)
\n(0)
\n-
\n(5)
\n(0)
\nClosing balance
-
(1)
-
(4)
(5)
\nCarrying amount
\nClosing balance
366
586
62
2
1 017
\nEstimated useful life
\nDepreciation plan
\n1\u201399 years
\nStraight-line
\n1\u201325 years
\nStraight-line
\n2\u20135 years
\nStraight-line
\n3-6 years
\nStraight-line
\nCarrying amounts of lease liabilities and the movements during the period
\nAmounts in NOK million
2022
2021
\nOpening balance
801
663
\nAdditions / lease modi\ufb01cations / remeasurements
124
260
\nPartial or full termination of agreements
(6)
(2)
\nDisposal of subsidiaries
(238)
-
\nPayments
(146)
(144)
\nInterest expenses on lease liabilities
30
26
\nCurrency translation di\ufb00erences
13
(2)
\nClosing balance (note 23)
578
801
\nThe maturity analysis of lease liabilities is disclosed in note 23
\nInterest-bearing assets and liabilities
Amounts recognised in consolidated statement of pro\ufb01t or loss
\nAmounts in NOK million
2022
2021
\nDepreciation of right-of-use assets
(119)
(116)
\nInterest expenses on lease liabilities (note 13)
(30)
(26)
\nLeasing expenses, short-term leases (note 11)
(56)
(44)
\nLeasing expenses, low value assets (note 11)
(13)
(11)
\nLeasing expenses, variable lease payments (note 11)
(2)
(2)
\nTotal amount recognised in consolidated statement of pro\ufb01t or loss
(219)
(199)
\n17. Other intangible assets
\nPrinciple
\nIntangible assets are stated in the consolidated \ufb01nancial
\nstatements at cost less accumulated amortisation and
\naccumulated impairment losses. Intangible assets acquired
\nin business combinations are recognised at fair value at the
\nacquisition date. Intangible assets with a \ufb01nite useful life are
\namortised, using the straight-line method, commencing when
\nthe asset is available for use. Assets that are an integral part of
\na group of assets are amortised from the date the related asset
\ngroup as a whole is ready for its intended use. Such assets are
\nimpairment tested annually.
\nThe estimated useful lives are reviewed at the end of each
\nreporting period.
\nAn intangible asset is derecognised on disposal, or when the
\ngroup expects no future economic bene\ufb01ts to be derived from
\nits use. Gain or loss arising from derecognition of an intangible
\nasset, measured as the di\ufb00erence between the net disposal
\nproceeds and the carrying amount of the asset, is recognised
\nin other operating income or other operating expenses in the
\nstatement of pro\ufb01t or loss.
\nExpenditure on research activities is recognised as an expense
\nin the period in which it is incurred. An intangible asset arising
\nfrom an internal development project is recognised in the
\nstatement of \ufb01nancial position if the group can demonstrate
\ntechnical feasibility of completing the intangible asset, has the
\nintention to complete it, ability to use it, can demonstrate that
\nit will generate probable future economic bene\ufb01ts and the cost
\ncan be reliably measured. Expenditures related to research and
\ndevelopment activities, see note 11 Other operating expenses.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.
\nJudgements and estimates
\nEstimated useful lives are used in calculation of amortisation
\nof intangible assets, these are reviewed, and if necessary
\nadjusted, at least annually.
\nDetails of intangible assets
\n2022
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n103
\n-
\n828
\n-
\n567
\n24
\n775
\n1
\n335
\n0
\n568
\n310
\n3 175
\n335
\nTransferred from CiP
-
-
5
58
-
(63)
-
\nReclassi\ufb01cation
-
3
43
-
(1)
7
53
\nBusiness combinations (note 4)
-
0
-
-
6
-
6
\nDisposal of subsidiaries (note 4)
-
-
-
-
-
(460)
(460)
\nDisposals
-
-
(30)
-
-
(3)
(33)
\nCurrency translation di\ufb00erences
5
36
18
46
11
18
134
\nClosing balance
108
868
627
880
350
377
3 209
\nAccumulated amortisation
\nOpening balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nAdditions
(2)
(41)
(54)
(57)
(33)
(186)
\nReclassi\ufb01cation
-
-
(1)
-
1
(0)
\nDisposals
-
-
8
-
-
8
\nCurrency translation di\ufb00erences
(3)
(26)
(12)
(30)
(3)
(74)
\nClosing balance
(59)
(579)
(457)
(606)
(122)
(1 824)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nCurrency translation di\ufb00erences
(0)
-
-
-
-
-
(0)
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
48
288
170
273
228
377
1 385
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2022 consists mainly of capitalisation of development projects of NOK 312 million of which NOK 230 million is related to Elkem's
\nbiocarbon initiative and battery projects.
Details of intangible assets
\n2021
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n108
\n-
\n836
\n1
\n469
\n16
\n714
\n-
\n322
\n-
\n305
\n324
\n2 753
\n342
\nTransferred from CiP
-
2
6
80
-
(87)
-
\nReclassi\ufb01cation
-
8
81
-
-
29
118
\nBusiness combinations (note 4)
-
-
-
-
-
-
-
\nDisposals
-
-
(9)
-
(0)
-
(9)
\nCurrency translation di\ufb00erences
(5)
(19)
4
(19)
12
(2)
(28)
\nClosing balance
103
828
567
775
335
568
3 175
\nAccumulated amortisation
\nOpening balance
(56)
(487)
(349)
(486)
(55)
(1 433)
\nAdditions
(1)
(41)
(50)
(53)
(31)
(177)
\nReclassi\ufb01cation
-
-
(1)
-
-
(1)
\nDisposals
-
-
5
-
0
5
\nCurrency translation di\ufb00erences
3
15
(3)
21
(1)
35
\nClosing balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nAdditions
-
-
(4)
-
-
-
(4)
\nDisposals
-
-
4
-
-
-
4
\nCurrency translation di\ufb00erences
0
-
-
-
-
-
0
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
47
315
169
256
248
568
1 602
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2021 consists mainly of capitalisation of development projects of NOK 300 million of which NOK 228 million is related to Elkem's
\nbiocarbon initiative and battery projects.
\n18. Goodwill
\nPrinciple
\nGoodwill
\nGoodwill is initially measured as the excess of the cost of an
\nacquisition over the group's share of the fair values of the
\nacquired entity's net identi\ufb01able assets at the acquisition
\ndate. If the fair value of the group\u2019s interest in the net assets
\nof the acquired subsidiary exceeds the cost of the acquisition
\n(negative goodwill), the di\ufb00erences are recognised directly in
\nthe statement of pro\ufb01t or loss as other items. Goodwill is carried
\nat cost less accumulated impairment losses. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.
\nJudgements and estimates
\nThe fair value of an acquired entity's net identi\ufb01able
\nassets used to initially measure goodwill are dependent on
\nassumptions such as future cash \ufb02ows and discount rate. See
\nnote 4 Composition of the group.
\nJudgments and estimates for impairment of assets, see Note
\n19 Impairment assessment.
\nDetails of goodwill
\nAmounts in NOK million
2022
2021
\nOpening balance
941
919
\nCurrency translation di\ufb00erences
43
22
\nClosing balance
984
941
\nOrigin of goodwill per CGU
\n31 December 2022
\nAmounts in NOK million
Silicones
Silicon Products
Carbon Solutions
Total
\nElkem Silicones Guangdong Co., Ltd.
499
-
-
499
\nElkem Silicones Korea Co., Ltd
126
-
-
126
\nElkem Silicones
80
-
-
80
\nElkem Rana AS
-
40
-
40
\nElkem Nagpur
-
38
-
38
\nElkem Oil\ufb01eld Chemical FZCO
-
23
-
23
\nElkem Dron\ufb01eld Ltd.
-
16
-
16
\nElkem Materials Process Services BV
-
0
-
0
\nFerroveld JV
-
-
43
43
\nElkem Parti\u00e7ipac\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
-
-
8
8
\nElkem Carbon (China) Co., Ltd.
-
-
1
1
\nNEH LLC
-
93
17
110
\nTotal goodwill
705
209
69
984
Origin of goodwill per CGU
\n31 December 2021
\nAmounts in NOK million
Silicones
Silicon Products
Carbon Solutions
Total
\nElkem Silicones Guangdong Co., Ltd.
485
-
-
485
\nElkem Silicones Korea Co., Ltd
119
-
-
119
\nElkem Silicones
76
-
-
76
\nElkem Rana AS
-
40
-
40
\nElkem Nagpur
-
37
-
37
\nElkem Oil\ufb01eld Chemical FZCO
-
21
-
21
\nElkem Dron\ufb01eld Ltd.
-
16
-
16
\nElkem Materials Process Services BV
-
0
-
0
\nFerroveld JV
-
-
41
41
\nElkem Parti\u00e7ipac\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
-
-
7
7
\nElkem Carbon (China) Co., Ltd.
-
-
1
1
\nNEH LLC
-
83
15
98
\nTotal goodwill
680
197
64
941
\n19. Impairment assessments
\nPrinciple
\nImpairment exists when the carrying value of an asset or
\ncash generating unit (CGU) exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and
\nits value in use. The fair value less cost of disposal calculation
\nis based on data from binding sales transactions, conducted
\nat arm\u2019s length for similar assets or observable market prices
\nless incremental costs of disposing the asset. The value in
\nuse calculation is based on a DCF model. The cash \ufb02ows are
\nderived from the budget for the next \ufb01ve years and do not
\ninclude restructuring activities that Elkem is not yet committed
\nto or signi\ufb01cant future investments that will enhance the
\nperformance of the assets of the CGU being tested. A long-
\nterm growth rate is calculated and applied to project future
\ncash \ufb02ows after the \ufb01fth year.
\nA CGU is the smallest group of assets that generates cash
\nin\ufb02ows from continuing use that are largely independent of the
\ncash in\ufb02ows of other assets.
\nIndicators of impairment will typically be changes in
\ntechnological development, changes in market conditions and
\nchanges in the competitive situation.
\nImpairment loss and reversal of previous impairment losses
\nare recognised as impairment losses in the statement of
\npro\ufb01t or loss.
\nGoodwill
\nGoodwill arising from a business combination is allocated
\nto CGUs or groups of CGUs that are expected to bene\ufb01t
\nfrom the synergies of the combination. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nIntangible assets, property plant and equipment and
\nright-of-use assets
\nIntangible assets with inde\ufb01nite useful lives are tested for
\nimpairment annually, or more frequently when there is an
\nindication of impairment. For the other non-\ufb01nancial assets
\nElkem assess, at each reporting date, whether there is
\nan indication that an asset may by impaired. A previously
\nrecognised impairment loss is reversed only if there has been
\na change in the assumptions used to determine the asset\u2019s
\nrecoverable amount since the last impairment loss was
\nrecognised. The reversal is limited so that the carrying amount
\nof the asset does not exceed its recoverable amount, nor
\nexceed the carrying amount that would have been determined,
\nnet of depreciation, had no impairment loss been recognised
\nfor the asset in prior years.
\nJudgements and estimates
\nThere is signi\ufb01cant judgment required to determine the CGU for
\nimpairment testing. For goodwill the determination of the CGU
\nis based on the level where synergies are expected to be realised
\nfollowing a business combination. The CGU for impairment
\ntesting of goodwill is determined to be the operating segments
\nas presented in note 6 Operating segments.
\nFor impairment testing of \ufb01xed, intangible and right of use
\nassets the CGU the lowest level that generates ingoing cash
\n\ufb02ows. This can be both a single plant or a combination of
\nplants depending on the facts and circumstances.
\nThe recoverable amounts of assets of CGUs subject to
\nimpairment testing are determined based on value-in-use
\ncalculations, which are based on estimated future cash \ufb02ows.
\nThe uncertainty in the cash \ufb02ows relates to future prices for
\nboth key input factors in the production and market prices for
\nthe sale of Elkem's products. There is uncertainty regarding
\nthese factors both for the next 12 months and for the rest
\nof the forecast period. The estimated future cash \ufb02ows are
\ndiscounted using a discount rate before tax. The estimation
\nuncertainty in the discount rate relates to the determination
\nof the risk free rate and the beta. Elkem have performed
\nsensitivity analysis in the impairment test to re\ufb02ect the
\nuncertainty in the estimates.
\n(a) Impairment test of goodwill
\nDiscounted cash \ufb02ow models are applied to determine the
\nvalue in use for the cash-generating unit. Key assumptions
\nused in the calculation of value in use are growth rate, EBITDA
\nlevels, capital expenditure and discount rates.
\nGrowth rates
\nThe expected growth rates for a cash-generating unit converge
\nfrom its current level experienced over the last few years, to
\nthe long-term growth level in the market in which the entity
\noperates. The growth rates used to extrapolate cash \ufb02ow
\nprojections beyond the explicit forecast period are based
\non management\u2019s past experience, assumptions in terms of
\nmarket share and expectations for the market development in
\nwhich the entity operates. Growth rate used in Elkem\u2019s DCF
\nmodels is 1.5% (2.0%).
\nEBITDA levels
\nEBITDA level represents the operating pro\ufb01t (loss) before
\ndepreciation and amortisation. The key assumptions used in
\nreaching the forecast \ufb01gures are sales prices, volume mix,
\noperating costs and productivity targets.
\nSales prices, volume and product mix:
The 2023 budget is
\nused as a basis for the forecast the next four years. Elkem
\nexperienced an increase in sales prices for most of Elkem\u2019s
\nproducts in the \ufb01rst part of the year, but prices declined in
\nthe latter part of 2022. For Elkem's Silicones business the
\nsales prices in China have been very volatile in 2022. In the
\nimpairment assessment Elkem has assumed sales prices will
\nnormalise and the price assumptions are below the current
\nmarket situation for Silicon Products and Carbon Solutions.
\nFor Silicones the assumption is an increase in volume and
\nprices compared to the current level, especially within specialty
\nproducts. There are no observable long-term market prices for
\nElkem\u2019s products, but there are external independent sources
\nsuch as CRU for the Silicon Products market that are used as a
\nbasis for the budget. Elkem works continuously to improve the
\nspecialty ratio and this is re\ufb02ected in the impairment models.
\nSales volumes are adjusted for necessary maintenance stops.
\nRaw materials and energy for smelting:
Most of Elkem\u2019s plants
\nhave long term energy contracts that covers their future need
\nof power. The contract prices is used in the estimate of future
\ncash \ufb02ows. For Elkem\u2019s spot exposure observable market
\nprices are used adjusted for CPI. Raw material prices are based
\non 2023 budget and are adjusted to re\ufb02ect expected volume /
\nmix changes.
\nClimate related risk:
The calculation of value in use re\ufb02ects
\nthe expected development in both the cost of CO
\n2
\nquotas and
\nthe income from CO
\n2
\ncompensation going forward in line with
\nthe current regulatory framework. Outside of this no climate
\nrelated legislation has been passed at the current time that
\nwill impact the group. However, there is an expectation that
\nany increase in cost due to new legislation will be covered by
\nincreased sales prices, full or partial compensation by incentive
\nschemes or increased e\ufb00ectiveness resulting in limited impact
\non operating cash \ufb02ows.
\nOther operating costs:
These are estimated based on the
\ncurrent level and adjusted for committed operational e\ufb03ciency
\nprograms. Changes to the outcome of these initiatives may
\na\ufb00ect future estimated EBITDA levels.
\nCapital expenditure (\u201cCapex\u201d)
\nA normalised capex is assumed in the long run and are based
\non today\u2019s maintenance level and technology. Estimated
\ncapital expenditures do not include capital expenditures that
\nsigni\ufb01cantly enhance the current performance, as such e\ufb00ects
\nare not included in the cash \ufb02ow projections.
\nCurrency rates and in\ufb02ation
\nThe value-in-use calculation is performed in the functional
\ncurrency for the CGU. The currency rates used to translate
\nfuture incomes and expenses in other currencies than the
\nfunctional currency are based on o\ufb03cial forward rates from
\nReuters. The long-term in\ufb02ation (CPI) are based on external
\npredictions and re\ufb02ect the CPI which each CGU is located.
\nDiscount rates
\nThe required rate of return is calculated by the WACC method.
\nThe cost of a company's equity and liabilities, weighted to
\nre\ufb02ect its capital structure of 50:50, respectively, derive
\nfrom its weighted average cost of capital. The WACC rates
\nare based on 10-year risk-free interest rate for the relevant
\ncurrency of the CGU. The rates are adjusted for in\ufb02ation
\ndi\ufb00erential and country risk premium. The discount rates also
\ntake into account the debt premium, market risk premium,
\ncorporate tax rate and asset beta. The WACC are adjusted for
\ntax to determine a pre-tax rate that is used for discounting the
\nestimated future cash \ufb02ows.
\nGoodwill acquired through business combination are allocated
\nto the operating segments Silicones, Silicon Products and
\nCarbon Solutions. Impairment testing of goodwill is done for
\na group of CGUs that is included in the respective operating
\nsegments. The following table give an overview of carrying
\namount of goodwill allocated to each of the operating
\nsegments. The table also includes the pre-tax discount rate for
\neach operating segment.
Cash Generating Units
\nCarrying amount
Pre-tax discount rate
\nAmounts in NOK million
31 December 2022
31 December 2021
31 December 2022
31 December 2021
\nSilicones
705
680
10.5 %
9.2%
\nSilicon Products
209
197
10.1 %
8.5%
\nCarbon Solutions
69
64
10.2 %
9.6%
\nGoodwill
984
941
\nSensitivity for test of goodwill
\n\u2192
An increase of 4% points in discount rate, for each
\noperating segment's discount rate, will not result
\nin impairment.
\n\u2192
A growth rate equal to zero for the terminal period, for
\nthe cash-\ufb02ows for each operating segment will not
\nresult in impairment.
\n\u2192
A decrease in the forecasted EBITDA levels of 30% for
\nthe cash-\ufb02ows for each operating segment will not
\nresult in impairment.
\n(b) Impairment test for intangible assets, property plant
\nand equipment and right-of-use assets
\nFor the assets with impairment indicators the recoverable
\namount was determined estimating the value in use of the
\nassets, see the goodwill section above for assumption used.
\nIn 2022 Elkem has identi\ufb01ed impairment indicators for one
\nof its CGUs, see below. The CGU was not assessed to be
\nimpaired, as the recoverable amount exceed the carrying
\namount for the CGUs.
\nIn 2021 Elkem identi\ufb01ed impairment indicators within the
\nSilicones segment, Silicones excluding Jiangxi Bluestar
\nXinghuo Silicones, Elkem Silicon Materials (Lanzhou), Elkem
\nSilicones Korea and Elkem Silicones Guangdong, which are
\ntested separately. The CGU have performed better in 2022
\nthan in 2021, and no new impairment indicators are identi\ufb01ed.
\nElkem Silicones Guangdong
\nElkem has identi\ufb01ed impairment indicators within Elkem
\nSilicones Guangdong. The total carrying amount of the CGU is
\nNOK 187 million. The impairment indicators are largely due to
\ndeterioration of EBITDA margins in 2022 due to signi\ufb01cantly
\nincreased raw material prices and limited pass-through
\nopportunities for the specialty part of their sales portfolio. Raw
\nmaterial prices have come down and is expected to remain at a
\nlower level with stable sales prices ensuring improved margins
\ngoing forward.
\nThe assumptions applied follow the assumptions as applied
\nfor the goodwill, see section above. It is assumed stable
\nproduction and sales prices and somewhat reduced cost in
\n2023 compared to 2022. The contribution margin for the
\nfollowing years are on the same level as for 2022. Pre-tax
\ndiscount rate used in the DCF calculation for the CGU is 9.5%.
\nAn increase of 4% points in discount rate, a growth rate used
\nto extrapolate the cash-\ufb02ows after \ufb01ve years equal to zero or a
\ndecrease in forecasted EBITDA of 30% points, will not result in
\nan impairment for the CGU.
\n20. Inventories
\nPrinciple
\nInventories are measured at the lower of cost and net realisable
\nvalue. Inventory consists of raw materials, semi-\ufb01nished
\ngoods and \ufb01nished goods, in addition to operating materials
\nand spare parts that do not meet the de\ufb01nition of property,
\nplant and equipment. Raw materials, and operating materials
\nand spare parts, are recognised at cost of purchase including
\ntransport and handling to their present location. Finished and
\nsemi-\ufb01nished goods are measured at cost of raw materials,
\nenergy for production and cost of conversion up to the actual
\ncompletion stage. Cost of conversion comprise operating
\nexpenses directly related to production of the products and
\nan allocation of direct \ufb01xed operating expenses. The cost of
\nCO
\n2
\nallowances that Elkem needs to purchase in addition to
\nallowances received from the government (note 8), are based
\non estimated production / emissions for the year. The cost is
\nallocated to cost of conversion proportionally over the year as
\nthe number of allocated allowances will not be revised unless
\nthere is a substantial change in the production level at the
\nplants. Net realisable value represents the estimated selling
\nprice for inventories less estimated costs of completion and
\nvariable selling expenses.
\nCost of goods sold is recognised in di\ufb00erent lines in the
\nstatement of pro\ufb01t or loss based on nature; raw materials and
\nenergy for production, employee bene\ufb01ts and other operating
\nexpenses. Actual cost of conversion related to goods sold is
\nreported net of change in cost of conversion in inventory and is
\nincluded in other operating expenses.
\nEntities within the group sell goods to other group entities,
\nconsequently \ufb01nished goods from one entity become raw
\nmaterials or semi-\ufb01nished goods for another group entity. The
\nclassi\ufb01cation of goods in the group's statement of \ufb01nancial
\nposition is based on the separate entity's classi\ufb01cation.
\nJudgements and estimates
\nThe assessment of net realisable value for the inventory is
\nbased on estimated market prices in the period the inventory is
\nexpected to be sold. The actual market price will di\ufb00er from the
\nestimates used.
\nDetails of inventory
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Cost price
Provision
Net total
Cost price
Provision
Net total
\nRaw materials
3 322
(12)
3 310
2 767
(74)
2 693
\nSemi-\ufb01nished goods
402
(41)
361
343
(41)
302
\nFinished goods
6 035
(142)
5 893
4 198
(63)
4 135
\nOperating materials and spare parts
792
(31)
761
610
(23)
586
\nTotal inventories
10 550
(226)
10 325
7 918
(202)
7 716
\nThis year's change in provision for impairment of inventory, a
\nloss of NOK 14 million (loss of NOK 87 million), is recognised as
\na part of raw materials and energy for production.
21. Trade receivables
\nPrinciple
\nTrade and bills receivables are initially recognised at transaction
\nprice, which in most cases corresponds to their nominal amount.
\nThe carrying amount is subsequently measured at amortised
\ncost using the e\ufb00ective interest rate method, less any provision
\nfor expected credit losses. Current receivables with no stated
\ninterest rate are recognised at their nominal amount.
\nA bill receivable is a document where the customer formally
\nagrees to pay for delivered goods or services at maturity
\ndate and are normally guaranteed by a \ufb01nancial institution.
\nA bill receivable is transferable and can be used to pay trade
\npayables (endorsed) or be settled in cash with a \ufb01nance
\ninstitution (discounted). The bills receivables-document
\ne\ufb00ectively replaces, for the speci\ufb01ed amount, the trade
\nreceivable exchanged for the bill. Bills receivables (mainly bank
\nacceptance bills that are guaranteed by a \ufb01nancial institution)
\nare primarily used by Elkem's Chinese entities and the duration
\nis normally below six months.
\nTrade receivables are derecognised when settled, replaced
\nby bills receivable or when transferred to a third party and
\nthe group has no further risk related to the receivables. Bills
\nreceivables are derecognised when they are settled on due
\ndate or when the risk and reward are transferred to a third
\nparty. Transferral to a third party can be done by discounting
\na bill receivable before due date or by endorsing the bill
\nreceivable, meaning that it is accepted by the supplier as
\npayment for goods or services received.
\nElkem calculates the expected credit losses (ECL) for trade
\nreceivables and bills receivables in accordance with the
\nsimpli\ufb01ed approach. All expected cash \ufb02ows, including cash
\n\ufb02ows from credit insurance contracts where such contracts
\nare deemed to be an integral part of the transactions, is taken
\ninto consideration. The assessment is based on historical
\nexperienced losses adjusted for forward-looking estimates on
\nchanges in risk / probability that credit losses will occur for the
\ndi\ufb00erent customer groups /segments where applicable.
\nJudgements and estimates
\nJudgement is applied when determining expected credit loss
\non trade receivables. The judgement is based on experienced
\nlosses in the past and expectations about future economic
\nconditions for the di\ufb00erent customer groups / business areas.
\nCalculation of expected credit losses takes into account cash
\n\ufb02ows from credit insurance contracts when such contracts
\nare deemed to be an integral part of the transaction. Elkem
\ngenerally secures its trade receivables by credit insurance
\nfrom a reputable credit insurance company, see note 27
\nFinancial risk.
\nDetails of trade receivables
\nAmounts in NOK million
31.12.2022
31.12.2021
\nTrade receivables
3 208
3 343
\nTrade receivables, related parties (note 32)
19
33
\nAllowance for expected credit losses
(65)
(69)
\nBills receivable
1 086
990
\nTotal trade receivables
4 248
4 297
\nElkem has entered into factoring agreements with a
\ncredit limit of a total of EUR 162 million (EUR 127), NOK
\n1,698 million (NOK 1,265 million), to sell on continuing
\nbasis trade receivables that meet speci\ufb01c conditions. The
\nagreements include a recourse clause for maximum 5%
\n-10%, depending on the agreement, of the face value of the
\nindividual receivables sold. The non-recourse amount of the
\nreceivables sold is derecognised and the recourse amount
\nis recognised as a current liability when the title to the
\nreceivables is transferred. As of 31 December 2022, NOK 106
\nmillion (NOK 57 million) is recognised as current liability (see
\nnote 24 Provisions and other liabilities). In addition, Elkem
\nhas entered into factoring agreements without recourse for
\nsome speci\ufb01c customers. Receivables that are sold without
\nrecourse are derecognised in its entirety when the title is
\ntransferred, as there is no remaining credit risk after transfer.
\nAs at 31 December 2022 NOK 1,777 million (NOK 1,467
\nmillion) of Elkem\u2019s trade receivables are derecognised under
\nthese agreements.
\nBills receivable consist of NOK 1,086 million (NOK 989 million)
\nbank acceptance bills and NOK 0 million (NOK 2 million)
\ncommercial acceptance bills.
\nA total of NOK 4,033 million (NOK 4,253 million) in unmatured
\nbills receivables are endorsed to a third party where the \ufb01nal
\npayment of the bill is guaranteed by a highly rated \ufb01nancial
\ninstitution. Elkem will only su\ufb00er losses on an endorsed bill if
\nthe bank that have issued the bill or all companies that have
\nendorsed the bill before Elkem goes bankrupt. These bills are
\nderecognised as there is very low remaining credit risk related
\nto endorsed bills.
\nAnalysis of gross trade receivables by age, presented based on the due date
\nAmounts in NOK million
31.12.2022
31.12.2021
\nNot due
2 392
2 883
\nOverdue by:
\n1\u201330 days
527
352
\n31\u201360 days
92
48
\n61\u201390 days
124
27
\nMore than 90 days
91
66
\nTotal trade receivables
\n1)
\n3 227
3 376
\n1)
\nBills receivable is not included in the ageing table
\nMovements in allowance for expected credit losses
\nAmounts in NOK million
2022
2021
\nOpening balance
(69)
(92)
\nBusiness combinations (note 4)
-
-
\nRealised losses during the year / Received on earlier losses
5
12
\nProvision for expected credit losses
(27)
(10)
\nReversal of earlier provisions
29
24
\nCurrency translation di\ufb00erences
(2)
(4)
\nClosing balance
(65)
(69)
\nAnalysis of allowance for expected credit losses, presented
\nbased on related trade receivables
\nAmounts in NOK million
31.12.2022
31.12.2021
\nNot due
(13)
(14)
\nOverdue by:
\n1\u201330 days
(1)
(1)
\n31\u201360 days
(0)
(0)
\n61\u201390 days
(3)
(4)
\nMore than 90 days
(48)
(50)
\nTotal allowance for expected credit losses
(65)
(69)
22. Other assets
\nPrinciple
\nOther shares
\nInvestments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares and recognised in
\nother non-current assets in the statement of \ufb01nancial position.
\nOther shares consist of equity investments in both listed and
\nunlisted companies. Shares in listed companies are measured
\nat fair value through pro\ufb01t or loss. Investments in equity
\ninstruments that do not have a quoted market price in an
\nactive market are classi\ufb01ed as \ufb01nancial assets measured at fair
\nvalue through other comprehensive income (OCI). Changes in
\nfair values recognised in OCI cannot be subsequently recycled
\nto statement of pro\ufb01t or loss. Dividends from such investments
\nare recognised as other items in the statement of pro\ufb01t or loss.
\nFinancial assets
\nA \ufb01nancial asset is recognised in the statement of \ufb01nancial
\nposition when Elkem becomes party to a contract. Assets to
\nbe acquired in relation to a \ufb01rm commitment to sell goods
\nor services are recognised at the time Elkem has performed
\nunder the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in the
\nstatement of \ufb01nancial position at fair value plus any transaction
\ncosts directly attributable to the acquisition or issue of the
\nasset. Financial assets are derecognised once the right to
\nfuture cash \ufb02ows have expired or been transferred to a third
\nparty, and Elkem has transferred substantially all the risk and
\nrewards of control of these assets. Any rights or obligations
\nretained in any transferred assets are booked separately as
\nassets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
\nLoans and receivables
\nLoans and receivables are non-derivative hold to collect
\n\ufb01nancial assets with \ufb01xed or determinable payments that are
\nnot quoted in a regulated market. After initial recognition, they
\nare recognised at amortised cost using the e\ufb00ective interest
\nmethod. Gains and losses are recognised in the statement of
\npro\ufb01t or loss when the loans and receivables are derecognised
\nor impaired, as well as through the amortisation process.
\nIf there is objective evidence of impairment, or if there is a risk
\nthat the group may not recover the contractual amounts at the
\ncontractual maturity dates, an impairment loss is recognised
\nin the statement of pro\ufb01t or loss. The provision is equal to the
\ndi\ufb00erence between the carrying amount and the estimated
\nfuture recoverable cash \ufb02ows.
\nCurrent assets
\nCurrent receivables are initially recognised at fair value, which
\nin most cases corresponds to their nominal amount. The
\ncarrying amount is subsequently measured at amortised cost
\nusing the e\ufb00ective interest rate method, less any provision
\nfor expected credit losses. Current receivables with no stated
\ninterest rate are recognised at their nominal amount.
\nJudgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
23. Interest-bearing assets and liabilities
\nPrinciple
\nInterest-bearing liabilities
\nThe liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability. Subsequently and
\ninsofar, as they are not designated as liabilities at fair value
\nthrough pro\ufb01t or loss, such liabilities are recognised at
\namortised cost using the e\ufb00ective interest rate method.
\nFinancial assets are derecognised when the rights to
\nreceive cash \ufb02ows from the assets have expired or have
\nbeen transferred to a third party. Financial liabilities are
\nderecognised when they are extinguished.
\nBills payable
\nA bill payable is a document where the buyer formally agrees
\nto pay for purchased goods or services at maturity date and
\nare normally guaranteed by a \ufb01nancial institution. The bills
\npayable are initially recognised when the supplier accepts
\nthe bill of exchange and is recognised at the amount equal
\nto the trade payables it replaces. Bills payable are used
\nby Elkem's Chinese entities, and the duration is normally
\nbelow six months. When the bill payable is guaranteed by a
\n\ufb01nancial institution it is normally required to deposit a certain
\nper centage of the nominal value of the bill payable into a
\nrestricted bank account. All bills payable in Elkem are bank
\nacceptance bills which is guaranteed by a \ufb01nancial institution.
\nCash and cash equivalents
\nCash and cash equivalents are held for the purpose of meeting
\nshort-term \ufb02uctuations in liquidity. Deposits with a term of 3
\nmonths or less on acquisition are included. Bank overdrafts
\nare presented within interest-bearing current liabilities in
\nthe statement of \ufb01nancial position. Restricted deposits are
\npresented separately in the statement of \ufb01nancial position
\nand excluded from cash and cash equivalents presented in the
\nstatement of cash \ufb02ows.
\nLease liabilities
\nSee note 16 Leases for accounting policies for right-of-use
\nassets and lease liabilities.
\nDetails of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
\nInterest-bearing liabilities by currency
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Currency amount
NOK
Currency amount
NOK
\nEUR
630
6 620
608
6 083
\nUSD
3
31
4
38
\nNOK
2 753
2 753
3 038
3 038
\nCNY
1 963
2 809
2 333
3 240
\nOther currencies
-
66
-
77
\nTotal interest-bearing liabilities
12 278
12 476
\nMaturity of interest-bearing liabilities
\n31 December 2022
\n2028
\nAmounts in NOK million
2023
2024
2025
2026
2027
and later
Total
\nLease liabilities
103
74
57
47
40
257
578
\nLoans from external parties, other than bank
10
916
1 234
942
500
105
3 706
\nBank \ufb01nancing
74
9
39
63
5 335
755
6 276
\nBills payable
1 742
1 742
\nAccrued interest
17
17
\nTotal interest-bearing liabilities excluding prepaid loan fees
1 946
1 000
1 330
1 052
5 875
1 117
12 320
\nPrepaid loan fees
(42)
\nTotal interest-bearing liabilities
12 278
\nMaturity of interest-bearing liabilities
\n31 December 2021
\n2027
\nAmounts in NOK million
2022
2023
2024
2025
2026
and later
Total
\nLease liabilities
116
101
80
64
53
387
801
\nLoans from external parties, other than bank
1 264
7
1 118
1 000
500
500
4 389
\nBank \ufb01nancing
572
4 398
206
3
3
4
5 186
\nBills payable
2 096
2 096
\nAccrued interest
20
20
\nTotal interest-bearing liabilities excluding prepaid loan fees
4 067
4 506
1 404
1 067
557
891
12 492
\nPrepaid loan fees
(16)
\nTotal interest-bearing liabilities
12 476
Loan agreements
\nThe main non-current loan agreements as of 31 December
\n2022 are a term loan of EUR 500 million (EUR 400 million), a
\nterm loan of EUR 0 million (EUR 5 million), issued bond loans
\nof a total of NOK 2,500 million (NOK 2,500 million) and a
\nseries of loans issued in the Schuldschein market of EUR 113
\nmillion (EUR 61 million). The main loan agreements are granted
\nto Elkem ASA. In addition Elkem Silicones Xinghuo \ufb01nancing
\nis parts of its upgrade of property, plant and equipment with a
\nunsecured term loan of CNY 650 million (CNY 0 million). The
\ninterest rates for the non-current loan agreements are in the
\nrange of 4.38% to 4.78% for the bond loans, 1.82% to 4.5% for
\nthe loans in the Schuldschein market and 3.45% to 3.95% for
\nthe PPE loans. For the term loan the interest rate is 3.44%.
\nElkem placed EUR 200 million in the Schuldschein market
\non 4 and 6-year tenors in December 2022, where of EUR
\n52 million was disbursed in December 2022, while EUR 148
\nmillion was disbursed in January 2023. In June Elkem signed
\nnew bank facilities with a term loan of EUR 500 million and a
\ncredit facility of EUR 500 million, re\ufb01niancing the term loan
\nof EUR 400 million from prior year. Later in 2022 the facilities
\nwas linked to two sustainability KPIs, KPI 1 Lost Time Injury
\nRate and KPI 2 \u2013 Product Group Carbon Footprint. The margin
\nof the RCF and term loan shall be reduced by 0.025% if both
\nKPIs are met, and increased by 0.025% if none of the KPIs are
\nmet. If one KPI is met there shall be no change to the margin.
\nThe sustainability KPIS will \ufb01rst be tested for 2023 with e\ufb00ect
\nfrom 2024.
\nOne of the loans issued in the Schuldschein market (EUR 15
\nmillion), is a \ufb01xed rate loan with a \ufb01xed rate of 1.8160%. Given
\nthe market conditions as at 31 December 2022 the loan would
\nhave been approximately EUR 0.7 million lower, due to the
\ndi\ufb00erence between \ufb01xed and market rate.
\nThe bond loans are listed on Oslo B\u00f8rs. There are no covenants
\nrelated to the bond loans. There are no material di\ufb00erences
\nbetween fair value of the bond loans and book values.
\nThe loan facilities are unsecured, but part of the loans has
\n\ufb01nancial covenants related to them, see below.
\nCredit facilities
\nAs of 31 December 2022 the group is granted credit facilities
\nof NOK 6,356 million. At 31 December 2022 NOK 14 million
\nis drawn.
\nAs of 31 December 2021 the group is granted credit facilities
\nof NOK 3,144 million. The credit facilities are undrawn at 31
\nDecember 2021.
\nThe main revolving credit facilities are granted to Elkem
\nASA, but the facilities can be utilised by Elkem ASA and its
\nsubsidiaries. The main facilities amount to EUR 500 million,
\nCNY 199 million, CNY 300 million and NOK 250 million
\nrespectively. See note 27 Financial risk, section (c) liquidity risk
\nfor more information.
\nHedging
\nSome / part of loans are designated as a hedging instrument,
\nsee note 26 Hedging.
\nLoan covenant
\nElkem has \ufb01nancial covenants related to its main bank
\n\ufb01nancing and parts of loans from external parties, other than
\nbank (Schuldschein), in Norway. The interest-bearing loans in
\nChina have no connected \ufb01nancial covenants. In addition to
\nthe covenants on these loan facilities in Norway there are loan
\ncovenants related to the credit facilities in Elkem Metal Canada
\nInc of CAD 2 million. Elkem and Elkem Metal Canada Inc. are
\ncompliant with their covenants at the end of 2022 and 2021.
\nThe covenants for the interest-bearing loan facilities in Norway
\nrelate to the \ufb01nancial performance of Elkem and are as
\nspeci\ufb01ed in the table below.
\nCovenant Elkem related to drawn loan of NOK 6,501 million
\n(NOK 5,971 million) in Elkem ASA
\nAmounts in NOK million
31.12.2022
31.12.2021
Loan covenant
\nEquity ratio
55 %
47 %
> 30%
\nInterest cover ratio
58.38
37.33
> 4.00
\nMovements in interest-bearing liabilities 2022
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Acquisition
Currency
\nReceipts/ remeasurements
/ Disposal of
translation
\nAmounts in NOK million
31.12.2021
Payments
and terminations
subsidiaries Reclassi\ufb01cation
di\ufb00erences
31.12.2022
\nLease liabilities
685
-
118
(218)
(117)
8
475
\nLoans from external parties
3 125
547
-
-
(9)
34
3 697
\nBank \ufb01nancing
4 615
902
-
650
(189)
223
6 202
\nTotal movements non-current
8 425
1 449
118
432
(315)
266
10 374
\nLease liabilities
116
(116)
-
(20)
117
5
103
\nLoans from external parties
1 264
(1 328)
-
-
9
64
10
\nBank \ufb01nancing
572
(710)
-
10
189
13
74
\nTotal movements current
1 952
(2 153)
-
(9)
315
82
187
\nTotal
10 376
(704)
118
423
-
348
10 561
\nMovements in interest-bearing liabilities 2021
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Currency
\nReceipts/
remeasurements
translation
\nAmounts in NOK million
31.12.2020
Payments
and terminations
Reclassi\ufb01cation
di\ufb00erences
31.12.2021
\nLease liabilities
566
-
258
(138)
(1)
685
\nLoans from external parties
1 996
2 464
-
(1 266)
(69)
3 125
\nBank \ufb01nancing
4 652
132
-
(5)
(164)
4 615
\nTotal movements non-current
7 214
2 596
258
(1 409)
(233)
8 425
\nLease liabilities
97
(118)
-
138
(1)
116
\nLoans from external parties
2 407
(2 373)
-
1 266
(36)
1 264
\nBank \ufb01nancing
762
(226)
-
5
31
572
\nTotal movements current
3 266
(2 717)
-
1 409
(6)
1 952
\nTotal movements
10 479
(122)
258
-
(239)
10 376
24. Provisions and other liabilites
\nPrinciple
\nProvisions
\nA provision is recognised when the group has a present
\nobligation (legal or constructive) and it is probable that an
\nout\ufb02ow of resources is required to settle the obligation. The
\namount recognised is the best estimate of the consideration
\nrequired to settle the obligation, taking into account the risks
\nand uncertainties surrounding the obligation, known at the end
\nof the reporting period. Provisions are measured at present
\nvalue, unless the time value is assessed to be immaterial.
\nContract obligations
\nContract obligations are liabilities assumed in business
\ncombinations, liabilities related to cancellation of contracts and
\ncontracts that includes guarantees for losses.
\nOther liabilities
\nThe liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability.
\nContingent liabilities
\nContingent liabilities are liabilities which are not recognised
\nbecause they are possible obligations that have not yet been
\ncon\ufb01rmed, or they are present obligations where an out\ufb02ow of
\nresources is not probable. Any signi\ufb01cant contingent liabilities
\nare disclosed in the notes.
\nContingent assets
\nContingent assets are not recognised but disclosed in the
\nnotes if probable.
\nJudgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
\n25. Financial assets and liabilities
\nPrinciple
\nFinancial assets
\nA \ufb01nancial asset or a \ufb01nancial liability is recognised in the
\nstatement of \ufb01nancial position when Elkem becomes party to
\na contract. Assets to be acquired and liabilities to be incurred
\nas a result of a \ufb01rm commitment to purchase or sell goods
\nor services are recognised at the time one of the parties has
\nperformed under the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in
\nthe statement of \ufb01nancial position at fair value plus any
\ntransaction costs directly attributable to the acquisition or
\nissue of the asset. Financial assets are derecognised when
\nthe right to future cash \ufb02ows have expired or been transferred
\nto a third party, once the group has transferred substantially
\nall the risk and rewards of control of these assets. Any rights
\nor obligations retained in any transferred assets are booked
\nseparately as assets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
\nFinancial liabilities
\nNon-derivative \ufb01nancial liabilities include interest-bearing
\nliabilities, bills payable and trade payables. The liabilities are
\ninitially recognised at fair value of the amount required to
\nsettle the associated obligation, net of prepaid costs directly
\nattributable to the liability. Subsequently and insofar, as they
\nare not designated as liabilities at fair value through pro\ufb01t or
\nloss, such liabilities are recognised at amortised cost using the
\ne\ufb00ective interest rate method.
\nFinancial liabilities are derecognised when they are extinguished.
\nDerivatives
\nDerivative \ufb01nancial assets and liabilities include \ufb01nancial
\ninstruments or contracts where the value changes in
\nresponse to the change of a speci\ufb01ed rate, price or index and
\ncommodity contracts within the scope of IFRS 9.
\nDerivatives are initially recognised at fair value at the date
\nwhen the derivative contracts are entered into. Transaction
\ncosts that are directly attributable to the acquisition of
\n\ufb01nancial assets or liabilities at fair value through pro\ufb01t or loss,
\nare recognised immediately in the statement of pro\ufb01t or loss.
\nSubsequently the derivatives are remeasured to their fair value
\nat the end of each reporting period. The resulting gain or loss
\nis recognised in the statement of pro\ufb01t or loss immediately,
\nunless the derivative is designated and is e\ufb00ective as a
\nhedging instrument, in which case the change in fair value is
\nrecognised in statement of pro\ufb01t or loss in the same period(s)
\nas the hedged objects a\ufb00ects the pro\ufb01t or loss.
\nDerivatives are presented as current assets or liabilities, unless
\nthey are expected to be realised more than 12 months after
\nthe reporting period. In that case, they are classi\ufb01ed as non-
\ncurrent assets or liabilities.
\nEmbedded derivatives
\nAn embedded derivative is a component of a hybrid instrument
\nthat also includes a non-derivative host contract with the e\ufb00ect
\nthat some of the cash \ufb02ows of the combined instrument vary in
\na way similar to a stand-alone derivative. Derivatives embedded
\nin \ufb01nancial liability of a non-\ufb01nancial host are separated from
\nthe host and accounted for as separate derivatives if; the
\neconomic characteristics and risks are not closely related to
\nthe host, a separate instrument with the same terms as the
\nembedded derivative would meet the de\ufb01nition of a derivative
\nand the hybrid contract is not measured at fair value through
\npro\ufb01t and loss. Elkem has long-term power contracts settled
\nin other currencies than the entity\u2019s functional currency. The
\ncurrency portion of these contracts is an embedded derivative
\nand is recognised and presented as an independent derivative,
\nsee section derivatives above.
\nCommodity contracts within the scope of IFRS 9
\nNon-\ufb01nancial commodity contracts where the relevant
\ncommodity is readily convertible to cash and where the
\ncontracts are not for own use, fall within the scope of IFRS 9
\nFinancial instruments - recognition and measurement. The
\ngroup currently has energy contracts in Norway that do not
\nmeet the own use criteria, since the power under the contracts
\nis delivered in another grid area to where the plants are located.
\nTransfer between di\ufb00erent grid areas is assessed to be net
\nsettlement and considered to be two di\ufb00erent transactions.
\nSuch contracts are therefore measured at fair value through
\npro\ufb01t or loss and classi\ufb01ed as derivatives, unless they are
\ndesignated as hedging instruments.
\nJudgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
\n(c) O\ufb00setting
\nFinancial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57
\n26. Hedging
\nPrinciple
\nHedge accounting
\nElkem has applied IFRS 9 for hedge accounting. According
\nto Elkem's policy, derivatives can be designated as hedging
\ninstruments for fair value hedges and cash \ufb02ow hedges. At the
\ninception of the hedge relationship, the entity documents the
\nrelationship between the hedging instrument and the hedged
\nitem, along with its risk management objectives and its
\nstrategy for undertaking various hedge transactions.
\ni) Cash \ufb02ow hedges
\nThe e\ufb00ective portion of changes in the fair value of derivatives
\nthat are designated and qualify as cash \ufb02ow hedges, are
\nrecognised in other comprehensive income and accumulated
\nunder the heading of cash \ufb02ow hedging reserve. The gain
\nor loss relating to the ine\ufb00ective portion is recognised
\nimmediately in the statement of pro\ufb01t or loss and classi\ufb01ed as
\nother items. Realised e\ufb00ects are recognised through statement
\nof pro\ufb01t or loss, in the same line item as the hedged objects.
\nii) Net investment hedges
\nHedges of net investments in foreign operations are accounted
\nfor similarly to cash \ufb02ow hedges. Any gain or loss on the
\nhedging instrument relating to the e\ufb00ective portion of the
\nhedge is recognised in other comprehensive income and
\nincluded in foreign currency translation reserve in equity. The
\ngain or loss relating to the ine\ufb00ective portion is recognised
\nimmediately in the statement of pro\ufb01t or loss within other
\nitems. Gains and losses accumulated in equity are reclassi\ufb01ed
\nto the statement of pro\ufb01t or loss when the foreign operation is
\npartially disposed of or sold.
\nWhen a hedging instrument expires or is sold, or when a
\nhedge no longer meets the criteria for hedge accounting, any
\ncumulative gain or loss existing in comprehensive income at
\nthat time remains in equity and is recognised in the statement
\nof pro\ufb01t or loss when the forecast transaction is ultimately
\nrecognised in the statement of pro\ufb01t or loss. When a forecast
\ntransaction is no longer expected to occur, the cumulative gain
\nor loss reported in equity is immediately transferred to the
\nstatement of pro\ufb01t or loss.
Elkem's hedging instruments
\nCash \ufb02ow hedge
\nElkem has forward currency contracts, embedded EUR
\nderivatives in power contracts and a EUR loan amounting
\nto EUR 5 million (EUR 11 million) where the spot element
\nis designated as hedging instruments and Elkem's highly
\nprobable future revenue in corresponding currencies is
\ndesignated as the hedging objects in this hedging relationship,
\nde\ufb01ned as a cash \ufb02ow hedge. In addition certain power
\ncommodity contracts, de\ufb01ned as \ufb01nancial instruments, are
\ndesignated as hedging instruments in a cash \ufb02ow hedge of
\nprice \ufb02uctuations for highly probable future purchases. Hence,
\nthe e\ufb00ective part of changes in fair value of the \ufb01nancial
\ninstruments is booked against OCI, and recycled to pro\ufb01t or
\nloss as an adjustment of revenue and power cost (included in
\nraw materials and energy for production) when realised. The
\nine\ufb00ective part of changes in the fair value of the \ufb01nancial
\ninstrument is recognised in other items in the statement of
\npro\ufb01t and loss.
\nNet investment hedge
\nElkem entered in 2017 into a bank loan amounting to EUR
\n275 million. In 2018 the bank loan of EUR 275 million was re-
\n\ufb01nanced and increased to EUR 400 million. In 2022 the loan
\nwas re\ufb01nanced again and increased to EUR 500 million. The
\nspot rate of the initial loan amount, EUR 275 million, has been
\ndesignated as a hedge of the net investment in the group\u2019s
\nsubsidiaries with EUR as functional currency. The fair value
\nand carrying amount of the borrowing at 31 December 2022
\nwas NOK 2,891 million (NOK 2,749 million). The change foreign
\nexchange gain of NOK 142 million (a gain of NOK 130 million)
\non translation of the borrowing from EUR to NOK at the end
\nof the reporting period is recognised in other comprehensive
\nincome and accumulated in the foreign currency translation
\nreserve in the statement of changes in equity. There was no
\nine\ufb00ectiveness to be recorded from net investment hedges.
\nSee note 27 Financial risk for Elkem's hedging policy.
\nCash \ufb02ow hedging instruments, by type
\nAmounts in NOK million
\n31.12.2022
\nAssets
\nfair value
\n31.12.2022
\nLiabilities
\nfair value
\n31.12.2021
\nAssets
\nfair value
\n31.12.2021
\nLiabilities
\nfair value
\nForward currency contracts
\nPower contracts \ufb01nancial institutions
\nPower contract \"30-\u00f8ringen\"
\nPower contract Salten Energigjenvinning AS
\nPower contracts embedded derivatives
\nCurrency e\ufb00ect loan EUR
\nCommodity contracts Platinum
\nTotal hedging instruments
\n110
\n28
\n1 235
\n-
\n(207)
\n-
\n1
\n1 167
\n80
\n-
\n-
\n-
\n56
\n8
\n-
\n144
\n146
\n27
\n364
\n58
\n-
\n-
\n-
\n593
\n18
\n-
\n-
\n-
\n110
\n10
\n-
\n138
\nLess non-current portion:
\nForward currency contracts
\nPower contracts \ufb01nancial institutions
\nPower contract \"30-\u00f8ringen\"
\nPower contract Salten Energigjenvinning AS
\nPower contracts embedded derivatives
\nCurrency e\ufb00ect loan EUR
\nCommodity contracts Platinum
\nCurrent portion of hedging instruments
\n87
\n-
\n861
\n-
\n(207)
\n-
\n-
\n427
\n-
\n-
\n-
\n-
\n-
\n-
\n-
\n144
\n102
\n4
\n180
\n22
\n-
\n-
\n-
\n285
\n-
\n-
\n-
\n-
\n88
\n5
\n-
\n45
\nAs at 31 December 2022 \ufb01nancial power contracts designated
\nin a hedging relationship comprise 15% of expected
\nconsumption in Norway in 2023 and about 14% in the period
\n2024 - 2030.
\nElkem has hedged approximately 19% of the expected
\nrevenues in EUR and approximately 7% of expected revenues
\nin USD for 2023. For the years 2024-2034 EUR is hedged at a
\nrange of 1 - 5%.
\nFinancial instruments
\n31 December 2022
E\ufb00ects to be recycled from OCI
\nHereof
Within
\nNet fair
recognised
Within
Within
Within
4 years
\nAmounts in NOK million
value
in OCI
1 year
2 years
3 years
or more
\nForward currency contracts
60
30
(57)
33
46
7
\nEmbedded EUR derivatives
20
(263)
(56)
(51)
(49)
(108)
\nPower contracts
2 080
1 263
402
229
167
464
\nWarrants
\n2)
\n3
-
-
-
-
-
\nCommodity contracts Platinum
1
1
1
-
-
-
\nTotal
\n1)
\n2 164
1 031
291
211
165
364
\nEUR loan designed as cash \ufb02ow hedging instrument
(56)
(8)
(8)
-
-
-
\nTotal
1 023
283
211
165
364
\nFinancial instruments
E\ufb00ects to be recycled from OCI
\n31 December 2021
\nHereof
Within
\nNet fair
recognised in
Within
Within
Within
4 years
\nAmounts in NOK million
value
OCI
1 year
2 years
3 years
or more
\nForward currency contracts
146
127
25
24
29
49
\nEmbedded EUR derivatives
(17)
(110)
(21)
(21)
(19)
(48)
\nPower contracts
414
448
242
57
32
117
\nWarrants
\n2)
\n3
-
-
-
-
-
\nCommodity contracts Platinum
0
0
0
-
-
-
\nTotal
\n1)
\n547
465
245
60
42
118
\nEUR loan designed as cash \ufb02ow hedging instrument
(107)
(10)
(5)
(5)
-
-
\nTotal
455
240
54
42
118
\n1)
\nHedge accounting is applied for certain contracts and for parts of contracts.
\n2)
\nSubscription SAFE (Simple Agreement for Future Equity)
\nOf total changes in fair value of power contracts designated
\nas hedging instruments NOK 1,471 million (NOK 124 million) is
\nrecognised in pro\ufb01t or loss, and classi\ufb01ed as other items (see
\nnote 12 Other items), due to ine\ufb00ectiveness in the hedging
\nrelationship and discontinuation of hedging. The ine\ufb00ectiveness
\non cash \ufb02ow hedges relates to Elkem's hedges of future power
\npurchase. The ine\ufb00ectiveness is caused by the extraordinary
\ndevelopments in the Norwegian power market with signi\ufb01cant
\ndi\ufb00erences in prices between the di\ufb00erent price areas.
\nConsequently, the cumulative change in fair value of some of the
\nhedging instruments are higher than the cumulative changes
\nin the present value of the hedge objects from the inception of
\nthe hedge. The di\ufb00erence between the two is the recognised
\nas ine\ufb00ectiveness. Of the NOK 1,471 million recognised in 2022,
\nNOK 1,422 million relates to hedge ine\ufb00ectiveness caused by
\nthese price di\ufb00erences. The remaining gain of NOK 49 million
\nis related to discontinuation of power hedging caused by
\nfurnace closures in Norway. For 2021 the entire ine\ufb00ectiveness
\nof NOK 124 million is caused by price di\ufb00erences. E\ufb00ects from
\nrecognition of ine\ufb00ectiveness from forward currency contracts
\nare NOK 0 million (NOK 3 million).
Realised e\ufb00ects hedge accounting
\nAmounts in NOK million
31.12.2022
31.12.2021
\nRealised e\ufb00ects from forward currency contracts, recognised in revenue
(14)
127
\nRealised e\ufb00ects from embedded derivatives EUR, recognised in revenue
(29)
(31)
\nRealised e\ufb00ects from EUR loans, recognised in revenue
(5)
(4)
\nRealised e\ufb00ects from platinum contracts, included in Revenues
0
-
\nRealised e\ufb00ects from power contracts, recognised in raw materials and energy for production
377
190
\nRealised e\ufb00ects hedge discontinuation, recognised in other items
38
-
\nRealised e\ufb00ects Salten Energigjenvinning, business combination (note 4)
58
-
\nTotal realised e\ufb00ects hedge accounting
424
282
\nIn addition, Elkem applies hedge accounting principles related
\nto currency risk from a net investment in foreign operation, see
\nnote 23 Interest-bearing assets and liabilities.
\nMovements in OCI related to hedging instruments
\n2022
\nOpening
Net change
Reclassi\ufb01ed
Closing
\nAmounts in NOK million
balance
in fair value
to P&L
balance
\nHedging of future sales, forward currency contracts
127
(112)
14
30
\nHedging of future need for power, contracts with \ufb01nancial institutions
27
57
(56)
28
\nHedging of future need for power, contract \"30-\u00f8ringen\"
\n2)
\n364
1 230
(359)
1 235
\nHedging of future need for power, contract Salten Energigjenvinning,
\nbusiness combination (see note 4)
58
0
(58)
-
\nHedging of future sales, embedded EUR derivatives in own use power contracts
\n1)
\n(110)
(182)
29
(263)
\nHedging of future sales, currency e\ufb00ects EUR loan
(10)
(3)
5
(8)
\nHedging of future sales, platinum contracts
\n2)
\n0
2
(0)
1
\nTotal (before tax)
455
992
(424)
1 023
\nMovements in OCI related to hedging instruments
\n2021
\nAmounts in NOK million
\nOpening
\nbalance
\nNet change
\nin fair value
\nReclassi\ufb01ed
\nto P&L
\nClosing
\nbalance
\nHedging of future sales, forward currency contracts
\nHedging of future need for power, contracts with \ufb01nancial institutions
\nHedging of future need for power, contract \"30-\u00f8ringen\"
\n2)
\nHedging of future need for power, contracts with Statkraft (swap)
\n1)
\nHedging of future need for power, contract with Salten Energigjenvinning
\nHedging of future sales, embedded EUR derivatives in own use power contracts
\n1)
\nHedging of future sales, currency e\ufb00ects EUR loan
\nHedging of future sales, platinum contracts
\n2)
\nTotal (before tax)
\n150
\n(6)
\n-
\n(3)
\n(29)
\n(332)
\n(23)
\n-
\n(242)
\n104
\n65
\n501
\n15
\n94
\n191
\n8
\n0
\n979
\n(127)
\n(33)
\n(138)
\n(12)
\n(8)
\n31
\n4
\n-
\n(282)
\n127
\n27
\n364
\n0
\n58
\n(110)
\n(10)
\n0
\n455
\n1)
\nHedge accounting from 2016.
\n2)
\nHedge accounting from 2021.
\n27. Financial risk
\nElkem is exposed to \ufb01nancial risks from \ufb02uctuations in market
\nprices for \ufb01nished goods, raw materials, currency exchange
\nrates and interest rates (a) Market risk. In addition, Elkem is
\nexposed to \ufb01nancial risks related to (b) Counterparty credit
\nrisk (c) Liquidity risk and (d) Climate risk. This may have
\nconsiderable impact on Elkem\u2019s \ufb01nancial performance.
\nElkem\u2019s principle is to organise resources close to the value
\nchain. Risk management is an integrated part of Elkem\u2019s
\nbusiness activities, included in the line management\u2019s
\nresponsibility. Financial risks, including \ufb01nancing, liquidity,
\ncurrency, interest rates, and counterparty risks are generally
\nmanaged centrally by Group Finance and Treasury. Elkem has
\n\ufb01nancial risk policies in place, approved by the board
\nof directors.
\nElkem\u2019s \ufb01nancial risk exposure and business performance are
\nevaluated regularly, and the main risks are analysed in terms
\nof impact, likelihood and correlation. Based on the overall risk
\nevaluation Elkem may accept or seek to further reduce the
\nrisks arising from operational activities.
\n(a) Market risk
\n(i) Price risk
\nCommodity prices
\nElkem is exposed to \ufb02uctuations in market prices for \ufb01nished
\ngoods and raw materials. The market risk assessment is
\nbased on a holistic approach as prices for Elkem\u2019s products
\ntend to \ufb02uctuate with underlying macroeconomic conditions.
\nThe same dynamics tend to apply to prices for the main raw
\nmaterials, giving Elkem a certain degree of natural hedging.
\nFor the main upstream products and raw materials Elkem
\nseeks to reduce the risk exposure by entering sales and
\npurchase contracts for corresponding time periods and
\nvolumes. The goal is to partly o\ufb00set changes in sales prices
\nthrough changes in raw material costs.
\nA signi\ufb01cant part of Elkem's sales consist of specialised
\nproducts. These products have generally more stable pricing.
\nElkem\u2019s integrated value chain mitigates the supply chain and
\npricing risks and also give \ufb02exibility to realise value at various
\nlevels through the value chain. Elkem aims to ensure sales
\nvolumes and raw material supply by entering into long-term
\ncustomer relationships.
\nPower
\nElectric power is a key input factor and Elkem enters into long-
\nterm power contracts to reduce the future exposure to changes
\nin power prices, particularly in Norway where electricity prices
\nbased on hydro power tend to have di\ufb00erent pricing dynamics
\nthan for Elkem\u2019s products and other raw materials.
\nNormally all plants have covered their main future need
\nfor power by entering into power contracts, primarily
\nclassi\ufb01ed as own use contracts according to IFRS 9, hence
\nsuch contracts are o\ufb00-balance. In addition to the own use
\ncontracts certain \ufb01nancial power contracts are classi\ufb01ed as
\nderivatives and designated in a cash \ufb02ow hedging relationship
\nin accordance with IFRS (see notes 25 and 26). For plants
\nlocated in Norway, Elkem\u2019s policy is that minimum 80% of the
\nexpected power consumption shall be covered by \ufb01xed price
\ncontracts for current and next year. This includes both own
\nuse and derivative contracts at fair value. For the following
\nperiods, the ratio extends until 4 years ahead, declining with
\n10%-point per year ending at 50%. Elkem currently ful\ufb01ls this
\nminimum hedge policy, and also has a substantial amount
\nof contracts at \ufb01xed price for the later years. Optimisation
\nof 24-hour-, seasonal- and capacity utilisation variations are
\nsolved through utilising \ufb01nancial and physical contracts that
\nare traded bilaterally. The purpose of entering into long term
\npower contracts is to reduce volatility in the power cost and
\nto increase the predictability of the cost base. Fair value of
\ncommodity contracts is especially sensitive for future changes
\nin energy prices.
\nChanges in fair value of commodity contracts, classi\ufb01ed as
\n\ufb01nancial instruments, re\ufb02ect unrealised gains or losses, and
\nare calculated as the di\ufb00erence between market price and
\ncontract price, discounted to present value. Valuations are
\nbased on market information where this is available, if not,
\nvaluations are based on estimated market price for non-
\nobservable parameters.
\nValuation of the power contracts
\nThe assumptions for the fair value measurement of power
\ncontracts are described in note 25 Financial assets and liabilities.
\nSensitivity analysis - power contracts
\nSensitivity on the \"30-\u00f8ringen\" contract is as follows.
\"30-\u00f8ringen\" contract
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Fair value
Adjusted NPV
Fair value
Adjusted NPV
\nDiscount rate (used 4.9% (3.5%))
change with -3.5 %-point
2 037
2 239
330
360
\nDiscount rate (used 4.9% (3.5%))
change with +3.5 %-point
2 037
1 869
330
319
\nCPI (used 2.0%)
change to 1%
2 037
2 084
330
379
\nCPI (used 2.0%)
change to 3%
2 037
1 988
330
279
\nPower price
decrease -10%
2 037
1 721
330
166
\nPower price
increase + 10%
2 037
2 353
330
494
\n(ii) Currency risk
\nElkem has revenues and operating costs in various currencies.
\nThe prices of \ufb01nished goods are to a large extent determined
\nin international markets, primarily denominated in US dollar,
\nChinese yuan and Euro. This is partly o\ufb00set by purchases of
\nraw materials denominated in the same currencies. Elkem
\naims to establish natural hedging positions if this is possible
\nand economically viable. Financial derivatives are then used
\nto hedge the remaining net currency risk exposures. Elkem
\nhas net positive operating cash \ufb02ows in mainly Euro, US
\ndollar, Chinese yuan and Brazilian real. Due to the location
\nof its plants, Elkem has net cost positions in certain other
\ncurrencies, mainly Norwegian krone, but also Canadian
\ndollar and Icelandic krona.
\nElkem's policy is to hedge the net positive cash \ufb02ows in
\nforeign currencies against NOK to even out \ufb02uctuations in
\nresult and cash \ufb02ow. The target is to hedge expected net
\ncash \ufb02ow for 0\u20133 months on a 90% hedging ratio. Expected
\nnet cash \ufb02ow for 4\u201312 months should be hedged on a rolling
\nbasis targeting a 45% hedging ratio. The hedging ratio for
\n4\u201312 months may vary subject to internal approval. Chinese
\nyuan (CNY) is not included in the hedging programme. Elkem
\nhas hedged Japanese yen until 2026, related to a long-term
\ncustomer contract. Elkem uses hedge accounting for all cash
\n\ufb02ow hedges over 3 months. Embedded EUR derivatives in
\npower contracts are included in the foreign exchange hedging
\nprogramme. To ensure an e\ufb00ective hedge, according to the
\nhedge accounting principles, the spot element of the forward
\ncurrency contracts is designated as hedging instruments and
\nhighly probable future revenue as hedging object in a hedging
\nrelationship, covering the exposure beyond 3 months.
\nElkem realised a loss of NOK 49 million from hedging
\nprogramme (gain of NOK 92 million).
\nElkem aims to mitigate the currency risk in the statement of
\n\ufb01nancial position by keeping interest-bearing debt in the same
\ncurrencies as the group\u2019s assets. Elkem has mainly interest-
\nbearing debt in Euro, Chinese yuan and Norwegian krone.
\nCurrency e\ufb00ects recognised in total comprehensive income
\nfor the year, excluding e\ufb00ects from cash \ufb02ow hedging
\nAmounts in NOK million
2022
2021
\nNet foreign exchange gains (losses) - forward currency contracts - recognised in other items
9
14
\nOperating foreign exchange gains (losses) - recognised in other items
387
20
\nNet foreign currency exchange gains (losses) on \ufb01nancing activities - recognised in foreign exchange gains (losses)
85
241
\nCurrency translation di\ufb00erences - recognised in other comprehensive income
765
358
\nHedging of net investment in foreign operations - recognised in other comprehensive income
(142)
130
\nTotal
1 104
764
\nCurrency exposure
\nThe amounts in the tables below are translated to NOK using
\nexchange-rates against NOK per 31 December.
\nExchange rates against NOK per 31 December
\n2022
2021
\nUSD
9.8714
8.8242
\nEUR
10.5130
9.9978
\nCNY
1.4309
1.3891
\nCAD
7.2879
6.9449
\nCurrency exposure a\ufb00ecting statement of pro\ufb01t or loss
\nThe tables show carrying amount of assets and liabilities
\ndenominated in foreign currencies di\ufb00erent from the entities
\nfunctional currency, where changes in currency rates will a\ufb00ect
\npro\ufb01t and loss. The tables include notional amount of currency
\nexchange contracts (note 25 Financial assets and liabilities).
\nAmounts are presented in NOK based on currency rates as at
\n31 December.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
662
98
-
-
-
-
759
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 658
3 124
489
(265)
0
459
5 466
\nTotal monetary assets
2 320
3 222
489
(265)
0
459
6 225
\nInterest-bearing liabilities
-
6 505
-
-
-
-
6 505
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
592
232
-
-
-
37
862
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
592
6 738
-
-
-
37
7 367
\nDerivatives, notional value
780
6 033
-
-
-
468
7 281
\nNet currency exposure \ufb01nancial position
948
(9 549)
489
(265)
0
(46)
(8 423)
31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
927
457
-
-
0
98
1 483
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 172
25
80
(95)
0
387
1 570
\nTotal monetary assets
2 100
482
80
(95)
0
485
3 052
\nInterest-bearing liabilities
-
6 773
-
-
-
-
6 773
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
442
117
3
0
2
56
620
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
442
6 890
3
0
2
56
7 393
\nDerivatives, notional value
399
5 598
-
-
-
631
6 629
\nNet currency exposure \ufb01nancial position
1 258
(12 006)
77
(95)
(1)
(202)
(10 969)
\nSensitivity on pro\ufb01t and loss from
\n\ufb01nancial assets and liabilities
\nThe following tables demonstrate the sensitivity to a reasonable
\npossible change in EUR and USD exchange rates by 5%, with
\nall other variables held constant. The impact on Elkem\u2019s pro\ufb01t
\nbefore tax is due to changes in the fair value of monetary
\nassets and liabilities including foreign currency derivatives and
\nembedded derivatives not designated for hedging. The impact
\non Elkem\u2019s pre-tax equity is due to changes in the fair value of
\nforward exchange contracts designated as cash \ufb02ow hedges
\nand net investment hedges. The impact on pre-tax equity
\nwould be booked against OCI and recycled through pro\ufb01t
\nbefore tax, when the hedged items are realised. In addition the
\npro\ufb01t and loss will be a\ufb00ected by translation di\ufb00erences on
\nintra group balances, mainly in EUR, USD and CNY.
\nCurrency
31.12.2022
31.12.2021
\nAmounts in NOK million
\nChange in
\nFX rate
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nEUR
5 %
(46)
(431)
(194)
(410)
\nEUR
-5 %
46
431
194
410
\nUSD
5 %
79
(31)
70
(16)
\nUSD
-5 %
(79)
31
(70)
16
\nCurrency exposure a\ufb00ecting currency
\ntranslation di\ufb00erences / equity
\nThe table shows Elkem's total assets and liabilities
\ndenominated in the group's main currencies translated to NOK
\nat the currency rates at 31 December and gives an overview
\nof the group's total currency exposure that will a\ufb00ect currency
\ntranslation di\ufb00erences both in the consolidated statement of
\ncomprehensive income and / or pro\ufb01t and loss.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
64
399
113
40
67
34
716
\nTrade receivables
1 451
452
1 644
29
3
668
4 248
\nOther assets
64
215
236
32
938
213
1 698
\nRestricted deposits
7
0
400
-
-
1
408
\nCash and cash equivalents
2 017
3 363
2 083
(60)
998
854
9 255
\nTotal monetary assets
3 603
4 429
4 476
41
2 006
1 771
16 325
\nAsset non-monetary items
2 828
5 917
12 311
1 278
12 264
1 858
36 455
\nTotal assets
6 431
10 345
16 787
1 319
14 270
3 628
52 781
\nInterest-bearing liabilities
31
6 620
1 066
-
2 753
66
10 535
\nOther liabilities
25
193
334
36
605
351
1 545
\nTrade payables
778
1 277
2 341
96
630
212
5 335
\nBills payable
-
-
1 742
-
-
-
1 742
\nTotal monetary liabilities
834
8 090
5 485
132
3 988
628
19 158
\nLiabilities non-monetary items
169
694
310
391
3 080
204
4 849
\nTotal liabilities
1 004
8 785
5 794
524
7 069
832
24 007
\n31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
47
285
43
-
72
31
478
\nTrade receivables
1 387
660
1 549
21
184
497
4 297
\nOther assets
20
185
262
12
939
134
1 551
\nRestricted deposits
2
-
604
-
3
-
609
\nCash and cash equivalents
1 438
219
1 448
221
3 066
647
7 040
\nTotal monetary assets
2 894
1 349
3 906
254
4 264
1 308
13 976
\nAsset non-monetary items
1 864
4 878
11 162
837
7 710
1 423
27 874
\nTotal assets
4 758
6 227
15 068
1 092
11 974
2 731
41 850
\nInterest-bearing liabilities
38
6 083
1 144
-
3 038
77
10 380
\nOther liabilities
39
225
469
25
664
235
1 657
\nTrade payables
567
1 049
1 705
95
1 011
186
4 614
\nBills payable
-
-
2 096
-
-
-
2 096
\nTotal monetary liabilities
644
7 357
5 414
121
4 714
498
18 747
\nLiabilities non-monetary items
\nTotal liabilities
\n139
\n782
\n709
\n8 065
\n606
\n6 020
\n188
\n308
\n1 403
\n6 117
\n184
\n683
\n3 228
\n21 976
\n(iii) Interest rate risk
\nElkem's interest rate risk arises from interest-bearing liabilities
\ngranted by external \ufb01nancial institutions. Elkem's liabilities are
\nmainly drawn in Euro, Chinese yuan and Norwegian krone.
\nElkem has a \ufb02oating interest rate policy and is hence exposed
\nto \ufb02uctuating interest rates. Prices and sales volumes for
\nElkem's core products tend to correlate with general economic
\nconditions. A \ufb02oating interest rate policy is therefore seen as
\nappropriate from a \ufb01nancial risk perspective. Interest rates
\nhave stayed low for a number of years due to a low-rate
\neconomic environment. During 2022 the interest rate has
\nincreased as many central banks have in\ufb02ation targets and
\nhave adjusted interest rates to control a higher rise in the price
\nlevel than targeted. With \ufb02oating interest rates the group will
\nnormally be in a position to bene\ufb01t from lower interest rates in
\nan economic downturn, but a \ufb02oating rate policy will also leave
\nthe group exposed to futhure interest rate hikes.
Elkem has the following interest-bearing assets and liabilities
\n31 December 2022
\nAmounts in NOK million
Floating
Fixed
Total
\nInterest-bearing liabilities
12 120
158
12 278
\nInterest-bearing assets
9 718
-
9 718
\nNet exposure
2 402
158
2 559
\nSensitivity
\nThe interest rate sensitivity is based on a parallel shift in the
\ninterest rates that Elkem is exposed to. If interest rates had
\nbeen 100 basis points higher for a full year, based on net debt
\nas at 31 December 2022, with all other variables held constant,
\nthe pro\ufb01t (loss) for the year would have been NOK 20 million
\n(NOK 38 million) lower. An overview of Elkem's debt portfolio is
\npresented in note 23 Interest-bearing assets and liabilities.
\n(b) Counterparty credit risk
\nCredit risk is the risk of \ufb01nancial losses to the group if a
\ncustomer or counterparty fails to meet contractual obligations.
\nFor Elkem this arises mainly to trade receivable and \ufb01nancial
\ntrading counterparties.
\nTrade receivables are generally secured by credit insurance
\nfrom a reputable credit insurance company. For customers
\nwhere credit insurance cannot be obtained, other methods
\nare generally used to secure the sales proceeds, such as
\nprepayment, letter of credit, documentary credit or guarantees.
\nIn particular, when sales are made in countries with a high
\npolitical risk, or to remote customers, trade \ufb01nance products
\nare used to reduce the credit risk. Of Elkem's revenue outside
\nChina 85% - 95% is covered by credit insurance or other trade
\n\ufb01nance tools.
\nElkem realised credit losses of NOK 5 million (NOK 12 million)
\ntrade receivables. The maximum exposure to credit risk for
\ntrade receivables for the group is NOK 4,257 million per 31
\nDecember 2022 (NOK 4,306 million). Please also refer to note
\n21 Trade receivables.
\nEvaluation of \ufb01nancial counterparties is based on external credit
\nratings from Moody's and / or Standard and Poor's. The general
\npolicy is that \ufb01nancial counterparties should have a rating
\nequal to, or higher than, A- (or the equivalent) from the rating
\nagencies, but exceptions may be made on a case-by-case basis,
\nmainly for local banks in emerging markets. Elkem has not had
\nany losses in 2022 or 2021 related to \ufb01nancial counterparties.
\n(c) Liquidity risk
\nLiquidity risk is the risk that the group will encounter di\ufb03culty
\nin meeting the obligations associated with its \ufb01nancial
\nliabilities. Elkem is exposed to liquidity risk related to its
\noperations and \ufb01nancing.
\nElkem's cash \ufb02ow will \ufb02uctuate due to economic conditions
\nand \ufb01nancial performance. In order to assess its future
\noperational liquidity risk, short-term and long-term cash \ufb02ow
\nforecasts are provided. The short-term forecast is updated
\neach week, and the long-term cash \ufb02ow projection is updated
\neach quarter.
\nIn order to mitigate the operational liquidity risk, Elkem
\nhas cash and revolving credit facilities with banks. As at 31
\nDecember 2022 Elkem has unrestricted cash of NOK 9,255
\nmillion (NOK 7,040 million). In addition, revolving credit
\nfacilities amount to NOK 6,356 million (NOK 3,144 million), of
\nwhich NOK 6,342 million is undrawn (NOK 3,144 million).
\nThe external loan agreements contain two \ufb01nancial covenants.
\nThe ratio of EBITDA to consolidated Net interest payable,
\nas de\ufb01ned herein, for each measurement period, where the
\nperiod is calculated as the 12 months ending on the last day
\nof a \ufb01nancial quarter, must exceed 4. Additionally, the ratio of
\ntotal equity to total assets must be more than 30% at all times.
\nElkem complies with these covenants as of 31 December 2022
\nand also complied with the covenants as of 31 December 2021,
\nsee note 23 Interest-bearing assets and liabilities.
\nThe policy is to have cash and available credit facilities to cover
\nknown capital needs and generally not less than 10% of annual
\ntotal operating income. In addition, the policy is to ensure that
\nthe main credit facilities have a remaining maturity of at least
\n12 months. The maturity pro\ufb01le of the credit facilities per 31
\nDecember 2022 for Elkem is shown in the table below.
\nYear / maturity
\nAmounts in NOK million
2023
2027
Total
\nTotal amount of credit facilities
1 100
5 257
6 356
\nThe table below analyses the group's \ufb01nancial liabilities and
\nassets into relevant maturity groupings based on the remaining
\nperiod at the date of the statement of \ufb01nancial position to the
\ncontractual maturity date. The amounts disclosed in the table
\nare the contractual undiscounted cash \ufb02ows, and the amounts
\nare including interest payments.
\n31 December 2022
\nAmounts in NOK million
2023
2024
2025
2026
2027
\n2028
\nand later
Total
\nCarrying
\namount
\nTrade receivables
\nDerivative assets
\nTotal assets
\n4 248
\n698
\n4 946
\n-
\n434
\n434
\n-
\n346
\n346
\n-
\n306
\n306
\n-
\n287
\n287
\n-
\n482
\n482
\n4 248
\n2 554
\n6 802
\n4 248
\n2 273
\n6 521
\nTrade payables
\nDerivative liabilities
\nLease liabilities
\nLoans from external parties, other
\nBank \ufb01nancing
\nBills payable
\nTotal liabilities
\nthan bank
\n5 335
\n109
\n103
\n103
\n140
\n1 742
\n7 532
\n-
\n8
\n101
\n1 009
\n73
\n-
\n1 191
\n-
\n-
\n79
\n1 299
\n102
\n-
\n1 480
\n-
\n-
\n65
\n979
\n125
\n-
\n1 169
\n-
\n-
\n55
\n518
\n5 395
\n-
\n5 968
\n-
\n-
\n291
\n105
\n827
\n-
\n1 223
\n5 335
\n117
\n695
\n4 014
\n6 661
\n1 742
\n18 564
\n5 335
\n109
\n578
\n3 706
\n6 276
\n1 742
\n17 747
\n31 December 2021
\nAmounts in NOK million
2022
2023
2024
2025
2026
\n2027
\nand later
Total
\nCarrying
\namount
\nTrade receivables
\nDerivative assets
\nTotal assets
\n4 297
\n269
\n4 567
\n-
\n62
\n62
\n-
\n37
\n37
\n-
\n54
\n54
\n-
\n18
\n18
\n-
\n154
\n154
\n4 297
\n594
\n4 891
\n4 297
\n588
\n4 885
\nTrade payables
\nDerivative liabilities
\nLease liabilities
\nLoans from external parties, other
\nBank \ufb01nancing
\nBills payable
\nTotal liabilities
\nthan bank
\n4 614
\n23
\n116
\n1 334
\n671
\n2 096
\n8 854
\n-
\n2
\n123
\n64
\n4 477
\n-
\n4 666
\n-
\n(1)
\n99
\n1 174
\n214
\n-
\n1 486
\n-
\n4
\n80
\n1 037
\n4
\n-
\n1 124
\n-
\n7
\n68
\n519
\n4
\n-
\n597
\n-
\n8
\n427
\n509
\n4
\n-
\n948
\n4 614
\n43
\n912
\n4 637
\n5 374
\n2 096
\n17 675
\n4 614
\n41
\n801
\n4 389
\n5 186
\n2 096
\n17 127
\n(d) Climate risk
\nClimate-related issues represent important risk factors to the
\nbusiness, as well as attractive business opportunities since
\nour products can be key enablers for lower greenhouse gas
\nemissions through amongst other things renewable energy,
\nenergy storage and electri\ufb01cation of transportation. Elkem's
\nboard of directors and management conduct regular reviews of
\nthe group's strategy, which includes processes for identifying,
\nassessing, and responding to climate-related risks and
\nopportunities. Climate-risk assessments are also integrated
\ninto our multi-disciplinary company-wide risk management
\nprocess and each year a mapping is performed to identify
\nthe top risks for each division and corporate function. The
\nindividual risks are then organised into categories and
\naggregated on group level. The process for identifying climate
\nrisks are part of the annual risk mapping.
28. Capital managment
\nElkem focuses on having a balanced capital structure, which
\nseeks to re\ufb02ect the return requirements for the shareholders
\nand the need for a strong \ufb01nancial position to facilitate the
\ngroup\u2019s strategy for growth and specialisation. The target is
\nto have a leverage between 1.0x and 2.0x over a cycle. The
\nleverage ratio is de\ufb01ned as net interest-bearing assets, less
\nnon-current interest-bearing assets (see note 23 Interest-
\nbearing assets and liabilities), divided by EBITDA, as de\ufb01ned
\nin the APM section.
\nElkem is managing its \ufb01nancing and liquidity position to
\nreduce liquidity risk and to ensure that the company can meet
\nits \ufb01nancial obligations at all times. Elkem has centralised the
\nresponsibility for group \ufb01nancing and liquidity handling. The
\npolicy is to raise \ufb01nancing at parent company level however,
\ncountry speci\ufb01c exceptions may be made due to local
\nlegislation or currency restrictions. Loan maturities are subject
\nto liquidity and re\ufb01nancing risk and the company aims to have
\na long-term and smooth maturity pro\ufb01le on its loan portfolio.
\nCash pooling is used to secure availability and access
\nto cash across the group. Due to local legislation, not all
\nsubsidiaries are able to participate in international cash pooling
\narrangements. In these cases, repatriation of excess cash
\nis mainly executed through dividend payments and inter-
\ncompany deposits, while liquidity needs are covered through
\ncapital injections and inter-company loans. Liquidity forecasts
\nare prepared and updated on a regular basis. The short-
\nterm forecasts are updated weekly. Elkem's cash position
\nis reported on a daily basis and tracked against respective
\nforecasts. The policy is that available liquidity reserves, de\ufb01ned
\nas cash and cash equivalents and available long-term credit
\nfacilities, should exceed 10% of total operating income.
\nFinancial covenants are applicable in some of Elkem\u2019s loan
\nagreements. Financial covenants, if required, are standardised
\nacross all loan agreements. Financial covenants and other
\n\ufb01nancial policy targets are monitored monthly and included in
\nthe company\u2019s management reports.
\nElkem intends to pay dividends re\ufb02ecting the underlying
\nearnings and cash \ufb02ow. Elkem envisages a dividend pay-
\nout ratio of 30 - 50% based on pro\ufb01t for the year. When
\ndeciding the annual dividend level, Elkem's leverage, capital
\nexpenditure plans and \ufb01nancing requirements will be
\ntaken into consideration. Focus will also be on maintaining
\nappropriate strategic \ufb02exibility. For the year 2021 Elkem
\ndistributed NOK 3.00 per share in dividends and for the year
\n2022 the proposed dividend is NOK 6.00 per share.
\nAs at 31 December 2022, Elkem's equity was NOK 28,773
\nmillion, including minority interests of NOK 134 million. The
\nequity ratio was 55%.
\n29. Number of shares
\nThe development in share capital and other paid-in equity is
\nset out in the consolidated statement of changes in equity.
\nThe largest shareholders are listed in note 21 to the \ufb01nancial
\nstatement of Elkem ASA.
\nNumber of shares
\n2022
2021
\nShares
Treasury
Total issued
Shares
Treasury
Total issued
\noutstanding
shares
shares
outstanding
shares
shares
\nOpening balance
633 037 606
6 403 772
639 441 378
581 310 344
-
581 310 344
\nCapital increase
-
-
-
58 131 034
-
58 131 034
\nIncrease in treasury shares
(5 000 000)
5 000 000
-
(6 403 772)
6 403 772
-
\nSale of treasury shares
6 439 379
(6 439 379)
-
\nClosing balance
634 476 985
4 964 393
639 441 378
633 037 606
6 403 772
639 441 378
\nThe share capital of Elkem ASA is NOK 3,197,206,890 divided
\non 639,441,378 shares of NOK 5 par value. Of this amount
\nElkem ASA held 4,964,393 treasury shares, 0.7% of total
\nissued shares. Elkem has in 2022 acquired 5,000,000 own
\nshares that will be used as settlement in Elkem's share option
\nscheme. Total transaction value was NOK 192 million. Elkem
\nhas in 2022 sold 6,439,379 shares in connection with Elkem's
\nshare option scheme. Total consideration was NOK 154 million.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to repurchase the
\ncompany\u2019s own shares within a total nominal value of up to NOK
\n319,720,689. The maximum amount that can be paid for each
\nshare is NOK 150 and the minimum is NOK 1. The authorisation
\nis valid until the annual general meeting in 2023, but not later
\nthan 30 June 2023. The authorisation can be used to acquire
\nshares as the board of directors deems appropriate, provided
\nhowever, that acquisition of shares shall not be by subscription.
\nIn the annual general meeting held on 27 April 2022, the
\nboard of directors was granted an authorisation to increase
\nthe company\u2019s share capital with an amount up to NOK
\n319,720,689 - corresponding to 10 per cent of the current
\nshare capital. The authorisation is valid until the annual
\ngeneral meeting in 2023, but not later than 30 June 2023. The
\nauthorisation can be used to cover share capital increases
\nagainst contribution in kind and in connection with mergers.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to increase the share
\ncapital by up to NOK 40,000,000 to be used in connection
\nwith the issuance of new shares under share incentive scheme.
\nThe authorisation is valid until the annual general meeting in
\n2023, but not later than 30 June 2023. The authorisation does
\nnot cover capital increases against contribution in kind or
\ncapital increases in connection with mergers.
\n30. Earnings per share
\nPrinciple
\nThe calculation of basic earnings per share (EPS) has been
\nbased on pro\ufb01t attributable to ordinary shareholders and
\nweighted-average number of ordinary shares outstanding. The
\ncalculation of diluted EPS has been based pro\ufb01t attributable
\nto ordinary shareholders and weighted-average number of
\nordinary shares outstanding after adjustment for the e\ufb00ects of
\nall dilutive potential ordinary shares.
\n2022
2021
\nWeighted average number of shares outstanding
633 563 574
618 160 299
\nE\ufb00ects of dilution
2 025 138
3 876 305
\nWeighted average number of shares outstanding - diluted
635 588 712
622 036 604
\nOwners of the parent's share of pro\ufb01t (loss) (NOK million)
9 561
4 628
\nEarnings per share (NOK)
15.09
7.49
\nDiluted earnings per share (NOK)
15.04
7.44
31. Supplemental information to the consolidated statement of cash \ufb02ows
\nThe following table gives an detailed overview of changes in
\nworking capital in the statement of cash \ufb02ow. Working capital
\nis de\ufb01ned as accounts receivable, inventory, other current
\nassets, accounts payable, current employee bene\ufb01t obligations
\nand other current liabilities. Accounts receivable are de\ufb01ned
\nas trade receivables less bills receivable. Other current assets
\nare de\ufb01ned as other current assets less current receivables
\nto related parties, current interest-bearing receivables, tax
\nreceivables, grants receivable, assets at fair value through
\npro\ufb01t or loss and accrued interest income. Accounts payable
\nare de\ufb01ned as trade payables less trade payables related to
\npurchase of non-current assets. Other current liabilities are
\nde\ufb01ned as provisions and other current liabilities less current
\nprovisions, contingent considerations, contract obligations and
\nliabilities to related parties.
\nChanges in working capital
\nAmounts in NOK million
2022
2021
\nChanges in accounts receivable
324
(1 374)
\nChanges in inventory
(2 258)
(2 358)
\nChanges in other current assets
99
(205)
\nChanges in accounts payable
134
1 213
\nChanges in other current liabilities including employee bene\ufb01t obligations
118
704
\nTotal
(1 583)
(2 020)
\nLiquidity e\ufb00ects of contingent considerations
\nAmounts in NOK million
2022
2021
\nSettlement of contingent consideration
160
83
\nDiscounting element on settlement of contingent consideration
12
3
\nFair value adjustment on settlement of contingent consideration
(0)
1
\nForeign exchange gains (losses) from date of control
4
(9)
\nTotal payment of contingent consideration related to acquisitions (IFRS 3)
176
78
\n32. Related parties
\nRelated parties' relationships are de\ufb01ned to be entities outside
\nElkem group that are under control (either directly or indirectly),
\njoint control or signi\ufb01cant in\ufb02uence by the owners of Elkem.
\nElkem ASA is owned 52.9% by Bluestar Elkem International
\nCo. Ltd S.A., Luxembourg, which is under control of Sinochem
\nHoldings Co., Ltd (Sinochem), a company registered and
\ndomiciled in China. All companies under control by Sinochem
\nare considered to be related parties, including among others
\nChina Blue Chemicals Ltd and Jiangxi Xinghuo space\ufb02ight
\nNew Material Co., Ltd.. On 1 February 2022 Elkem purchased
\nthe remaining shares in Salten Energigjenvinning AS and
\ntransactions from that date are eliminated.
\nElkem also consider equity accounted companies as related
\nparties. On 14 September 2022 Elkem lost control of Vianode
\nAS and transactions are from that date considered to be
\nrelated party transactions.
\nThe structure of Elkem group is disclosed in note 4
\nComposition of the group and note 5 Equity accounted
\ninvestments and joint operation.
\nTransactions with related parties
\n2022
\nSale of
Purchase
Sale of
Purchase of
Interest
Financial
\nAmounts in NOK million
goods
of goods
services
\n1)
\nservices
income
expenses
\nBluestar Elkem International Co. Ltd S.A.
-
-
-
-
-
-
\nJoint ventures and associates
-
(280)
15
(191)
0
-
\nRelated parties within Sinochem
336
(434)
14
(126)
-
-
\nOther related parties
-
(21)
-
(18)
-
-
\nTotal
336
(735)
30
(335)
0
-
\n1)
\nIncluding sub-lease
\nTransactions with related parties
\n2021
\nSale of
Purchase
Sale of
Purchase of
Interest
Financial
\nAmounts in NOK million
goods
of goods
services
\n1)
\nservices
income
expenses
\n1)
\nBluestar Elkem International Co. Ltd S.A.
-
-
-
-
-
-
\nJoint ventures and associates
-
(158)
32
(184)
0
-
\nRelated parties within Sinochem
581
(414)
41
(153)
-
-
\nOther related parties
0
(18)
-
(16)
-
-
\nTotal
581
(591)
73
(354)
0
-
\n1) Including sub-lese
\nBalances with related parties
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nReceivables from joint ventures and associates, interest-bearing
1
1
-
-
\nReceivables from related parties within Sinochem, interest free
-
-
7
1
\nLiabilities to related parties within Sinochem, interest free
-
-
(30)
(32)
\nTrade receivables, related parties within Sinochem
-
-
4
17
\nTrade receivables, joint ventures and associates
-
-
15
16
\nTrade payables, Bluestar Elkem Investment Co. Ltd. S.A
-
-
(5)
(5)
\nTrade payables, related parties within Sinochem
-
-
(79)
(56)
\nTrade payables, joint ventures and associates
-
-
(71)
(43)
\nPrepayments to related parties within Sinochem
-
-
15
18
\nPrepayments from joint ventures and associates
-
-
(17)
(10)
\nFinancial power contract with joint ventures and associates
-
22
-
35
\nNet balances with related parties
1
23
(161)
(60)
Outstanding balances at year-end are unsecured, and the
\ncurrent receivables and payables are interest-free, with an
\nexception of the non-current receivables. The interest rate
\nfor the non-current receivables to the joint ventures and
\nassociates are currently 3.0% (2.5%).
\nInformation about main transactions with related parties:
\nRelated parties within Sinochem
\n\u2192
Sale of silicone to China Bluestar International
\nChemical Ltd,
Jiangxi Xinghuo Space\ufb02ight New
\nMaterial Co., Ltd and other companies within Sinochem
\n\u2192
Purchase of raw materials from companies
\nwithin Sinochem
\nEquity accounted companies
\nVianode AS
\nThe group has entered into a investment agreement
\nand committed to cover its proportion of total estimated
\ncapital injections in Vianode AS. Elkem's proportion is
\nNOK 534.5 million, whereof NOK 267 million is paid as of
\n31 December 2022.
\nJiangxi Guoxing Intelligence Energy Co. Ltd
\nElkem has committed to cover its proportion of total estimated
\ncapital injections in Jinangxi Energy of CNY 48.7 million,
\nwhereof CNY 17.5 million is paid as of 31 December 2022.
\nIn addition Elkem has committed to sell the land, buildings and
\nequipment needed to establish the cogeneration facility and
\nwhen the facility is up and running committed to supply steam.
\nOther equity accounted companies
\n\u2192
Purchase of short and deep sea transport from North Sea
\nContainerline AS and EPB Chartering AS
\n\u2192
Purchase of warehousing for Combined Cargo
\nWarehousing BV
\n\u2192
Purchase of services related to shared infrastructure such
\nas laboratory analysis, IT and telephone, warehousing
\nand purchase of basic chemistry products such as gas,
\nnitrogen, compressed air from GIE Osiris
\nThere are no other contingent liabilities or commitments
\nrelated to the joint ventures and associates.
\nKey management personnel and board of directors
\nInformation on transactions with key management personnel,
\nsee note 9 Employee bene\ufb01ts and \"Report on salary and
\nother remuneration to leading personnel in Elkem ASA for the
\n\ufb01nancial year 2022\".
\n33. Pledge of assets and guarantees
\nPledges
\nThe main part of Elkem's interest-bearing liabilities are not
\npledged. Details of liabilities that have pledged assets or
\nguarantees related to them are stated below.
\nPledged liabilities
\nAmounts in NOK million
31.12.2022
31.12.2021
\nPledged liabilities
125
79
\nBook value pledged assets
\nAmounts in NOK million
31.12.2022
31.12.2021
\nBuilding
30
28
\nMachinery and plant
0
0
\nOther assets
106
57
\nElkem makes limited use of guarantees, see speci\ufb01cation below.
\nGuarantee commitments
\nAmounts in NOK million
31.12.2022
31.12.2021
\nGuarantee commitment KLIF (Climate and Pollution Agency)
40
40
\nGuarantee commitment tax cases Brazil
38
15
\n34. Change in presentation
\nPresentation of realised hedge ine\ufb00ectiveness is changed from
\nraw materials and energy for production to other items in the
\nstatement of pro\ufb01t or loss. The impact on comparable \ufb01gures
\nin the statement of pro\ufb01t or loss are shown in the tables below.
\nThe change in presentation will not a\ufb00ect accounting policies
\nfor operating segments, see note 6 Operating segments.
\nConsolidated statement of pro\ufb01t or loss
\n2022
2022
\nbefore
After
\nAmounts in NOK million
change
Impact
change
\nRaw materials and energy for production
(21 378)
(597)
(21 976)
\nOther items
1 554
597
2 151
\nOperating pro\ufb01t (loss)
12 414
-
12 414
\nConsolidated statement of pro\ufb01t or loss
\n2021
\nFinancial
Impact
2021
\nAmounts in NOK million
statement
of change
Restated
\nRaw materials and energy for production
(15 861)
(124)
(15 985)
\nOther items
(114)
124
10
\nOperating pro\ufb01t (loss)
5 785
-
5 785
\n35. Events after the reporting period
\nPrinciple
\nEvents after the reporting period
\nEvents after the reporting period related to the group\u2019s \ufb01nancial
\nposition at the end of the reporting period, are considered in
\nthe \ufb01nancial statements. Events after the reporting period that
\nhave no e\ufb00ect on the group\u2019s \ufb01nancial position at the end of
\nthe reporting period, but will have e\ufb00ect on future \ufb01nancial
\nposition, are disclosed if the future e\ufb00ect is material.
\nNo events have taken place after the reporting period that
\nwould have had a material impact on the \ufb01nancial statements
\nor any assessments carried out.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfNotesAndOtherExplanatoryInformationExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11868": {
"value": "1. General information Elkem ASA is a limited liability company located in Norway
\nand whose shares are publicly traded on Oslo B\u00f8rs. Elkem
\nASA is owned 52.9% by Bluestar Elkem International Co. Ltd
\nS.A., Luxembourg, which is under the control of Sinochem
\nHoldings Co., Ltd (Sinochem), a company registered and
\ndomiciled in China.
\nElkem is one of the world\u2019s leading providers of advanced
\nmaterial solutions shaping a better and more sustainable
\nfuture. The company develops silicones, silicon products
\nand carbon solutions by combining natural raw materials,
\nrenewable energy and human ingenuity. Elkem helps its
\ncustomers create and improve essential innovations like
\nelectric mobility, digital communications, health and personal
\ncare as well as smarter and more sustainable cities. With
\na strong track record since 1904, its global team of more
\nthan 7,000 people has a joint commitment to stakeholders:
\nDelivering your potential. In 2022, Elkem achieved an operating
\nincome of NOK 45,898 million.
\nThe consolidated \ufb01nancial statements for Elkem ASA
\n(hereafter Elkem/the group), including notes, for the year 2022
\nwere authorised for issue by the Board of Directors of Elkem
\nASA on 8 March 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11872": {
"value": "Elkem ASA",
"dimensions": {
"concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11873": {
"value": "limited liability company",
"dimensions": {
"concept": "ifrs-full:LegalFormOfEntity",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11874": {
"value": "Norway",
"dimensions": {
"concept": "ifrs-full:CountryOfIncorporation",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11875": {
"value": "Norway",
"dimensions": {
"concept": "ifrs-full:DomicileOfEntity",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11876": {
"value": "Norway",
"dimensions": {
"concept": "ifrs-full:PrincipalPlaceOfBusiness",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11879": {
"value": "Bluestar Elkem International Co. Ltd S.A",
"dimensions": {
"concept": "ifrs-full:NameOfParentEntity",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11882": {
"value": "Sinochem Holdings Co., Ltd",
"dimensions": {
"concept": "ifrs-full:NameOfUltimateParentOfGroup",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11887": {
"value": "Elkem is one of the world\u2019s leading providers of advanced material solutions shaping a better and more sustainable \nfuture. The company develops silicones, silicon products \nand carbon solutions by combining natural raw materials, \nrenewable energy and human ingenuity. Elkem helps its \ncustomers create and improve essential innovations like \nelectric mobility, digital communications, health and personal \ncare as well as smarter and more sustainable cities.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11902": {
"value": "The consolidated \ufb01nancial statements for Elkem ASA (hereafter Elkem/the group), including notes, for the year 2022
\nwere authorised for issue by the Board of Directors of Elkem
ASA on 8 March 2023.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11910": {
"value": "2. Basis for preparing the consolidated \ufb01nancial statements Compliance
\nThe consolidated \ufb01nancial statements are prepared and in
\naccordance with International Financial Reporting Standards
\n(IFRS) as endorsed by the European Union (EU) and e\ufb00ective
\nat 31 December 2022. All accounting policies are used
\nconsistently by all subsidiaries in the consolidated \ufb01nancial
\nstatement. Relevant \ufb01nancial reporting principles are described
\nin each note to the consolidated \ufb01nancial statements.
\nPreparation of consolidated \ufb01nancial statements
\nThe consolidated \ufb01nancial statements are prepared on a
\nhistorical cost basis, with the exception of derivative \ufb01nancial
\ninstruments and other \ufb01nancial assets measured at fair value.
\nThe presentation currency of Elkem is Norwegian Krone
\n(NOK). All \ufb01nancial information is presented in NOK million,
\nunless otherwise stated. As a result of rounding adjustments,
\nthe amounts shown in one or more rows and columns
\nincluded in the consolidated \ufb01nancial statements, may not
\nadd up to the total.
\nIn text, the current year's \ufb01gures are presented outside
\nparentheses, followed by the comparative \ufb01gures presented
\nin parentheses.
\nThe consolidated \ufb01nancial statements have been prepared
\nbased on the going concern assumption.
\nForeign currency translation
\nEach entity in the group determines its functional currency
\nbased on the economic environment in which it operates,
\nand items included in the \ufb01nancial statements of each entity
\nare measured using that functional currency. When preparing
\nthe \ufb01nancial statements of each individual group entity,
\ntransactions in currencies other than the entity's functional
\ncurrency are recognised in the functional currency, using the
\ntransaction date\u2019s currency rate.
\nMonetary items denominated in foreign currencies are
\ntranslated to each entity's functional currency using the
\nclosing rate at the end of the reporting period, and any gains
\n(losses) are reported in the statement of pro\ufb01t or loss. Non-
\nmonetary items that are measured at fair value in a foreign
\ncurrency are translated using the exchange rate at the date
\nwhen the fair value was measured. Currency gains (losses)
\nrelated to operating activities, i.e. receivables, payables, bank
\naccounts for operating purposes including current intragroup
\nbalances, are recognised as a part of other items. Currency
\ne\ufb00ects recognised in \ufb01nance income and expenses are only
\nrelated to \ufb01nancing activities such as loans, lease liabilities,
\nlong-term placements and dividends.
\nForeign currency di\ufb00erences are recognised in other
\ncomprehensive income for the following items:
\n\u2192
a \ufb01nancial asset or liability designated as a hedging
\ninstrument in a cash \ufb02ow hedge, to the extent that the
\nhedge is e\ufb00ective
\n\u2192
loans in foreign currencies designated as hedging
\ninstruments in a hedge of a net investment in a
\nforeign operation
\nIn consolidation of the statement of pro\ufb01t or loss and the
\nstatement of \ufb01nancial position, separate group entities with
\nother functional currency than the group's presentation
\ncurrency, are translated directly into the presentation
\ncurrency as follows:
\n\u2192
Assets and liabilities are translated using the exchange
\nrate at the end of the reporting period
\n\u2192
Income and expenses are translated using an average
\nexchange rate per month
\n\u2192
Equity transactions, except for pro\ufb01t or loss for the
\nperiod, are translated using the transaction date rates
\nAll resulting exchange di\ufb00erences are booked as a separate
\ncomponent in other comprehensive income (OCI)
\nAny goodwill arising on acquisition of a foreign operation and
\nany fair value adjustment to the carrying amount of assets and
\nliabilities arising on the acquisition, are treated as assets and
\nliabilities of the foreign operations. On disposal of a foreign
\nentity, the deferred cumulative amount recognised in other
\ncomprehensive income relating to that particular foreign
\noperation, is recognised in the statement of pro\ufb01t or loss.
\nStatement of cash \ufb02ows
\nThe statement of cash \ufb02ows is prepared under the indirect
\nmethod. Cash in\ufb02ows and out\ufb02ows are shown separately for
\ninvesting and \ufb01nancing activities, while operating activities
\ninclude both cash and non-cash e\ufb00ect items. Interest received
\nand paid and other \ufb01nancial expenses, such as bank guarantee
\nexpenses, are reported as a part of operating activities. Net
\ncurrency gains or losses related to \ufb01nancing activities are
\nreported as part of \ufb01nancing activities. Dividends received from
\njoint ventures and associates that do not operate within Elkem's
\nmain business areas are included in investing activities.
\nDividend to shareholders
\nDividend is recognised as a liability when the shareholders'
\nright to payment is established, which is when the dividend is
\napproved by the General Meeting.
\nChanges in accounting policies and correction
\nof material errors
\nChanges in accounting policies and correction of material errors
\nare recognised retrospectively by restating the comparative
\namounts for the prior period presented, including the opening
\nbalance of the prior year.
\nChanges in accounting policy
\nThe IFRS Interpretations Committee (IFRIC) published an
\nagenda decision in April 2021 \u201cCon\ufb01guration or Customisation
\nCosts in a Cloud Computing Arrangement (IAS 38 Intangible
\nAssets)\u201d, con\ufb01rming that a cloud computing customer should
\nexpense the costs of con\ufb01guring or customising a supplier\u2019s
\napplication software in a Software as a Service arrangement.
\nFrom 1.1.2022 Elkem has applied this policy for costs related
\nto the implementation of cloud computing. Following the
\naccounting policy change NOK 24 million was adjusted
\ntowards opening balance of equity in second quarter of 2022.
\nDue to materiality comparable \ufb01gures are not restated.
\nChange in presentation
\nPresentation of realised hedge ine\ufb00ectiveness is changed
\nfrom raw materials and energy for production to other items
\nin the statement of pro\ufb01t and loss. The change is done to
\npresent realised e\ufb00ects together with unrealised e\ufb00ects from
\nine\ufb00ectiveness. The impact from realised ine\ufb00ectiveness has
\nnot been material in previous years. Comparable \ufb01gures are
\nrestated. See note 34 Changes in accounting policies.
\nNew and revised standards - adopted
\nNew or revised accounting standards and interpretations
\nimplemented as of 1 January 2022 are among others Onerous
\nContracts \u2013 Costs of Ful\ufb01lling a Contract (Amendments to IAS
\n37) and Proceeds before Intended Use (Amendments to IAS 16
\nProperty, plant and equipment). The new or revised accounting
\nstandards and interpretations do not represent a signi\ufb01cant
\nimpact to Elkem's accounting policies.
\nNew standards, interpretations and amendments
-
\nnot yet e\ufb00ective
\nThe consolidated \ufb01nancial statements will be a\ufb00ected by
\nfuture changes in IFRS. No standards, interpretations or
\namendments published at the balance sheet date are
\nexpected to have signi\ufb01cant e\ufb00ect on the group.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11911": {
"value": "2. Basis for preparing the consolidated \ufb01nancial statementsCompliance
\nThe consolidated \ufb01nancial statements are prepared and in
\naccordance with International Financial Reporting Standards
\n(IFRS) as endorsed by the European Union (EU) and e\ufb00ective
\nat 31 December 2022. All accounting policies are used
\nconsistently by all subsidiaries in the consolidated \ufb01nancial
\nstatement. Relevant \ufb01nancial reporting principles are described
\nin each note to the consolidated \ufb01nancial statements.
\nPreparation of consolidated \ufb01nancial statements
\nThe consolidated \ufb01nancial statements are prepared on a
\nhistorical cost basis, with the exception of derivative \ufb01nancial
\ninstruments and other \ufb01nancial assets measured at fair value.
\nThe presentation currency of Elkem is Norwegian Krone
\n(NOK). All \ufb01nancial information is presented in NOK million,
\nunless otherwise stated. As a result of rounding adjustments,
\nthe amounts shown in one or more rows and columns
\nincluded in the consolidated \ufb01nancial statements, may not
\nadd up to the total.
\nIn text, the current year's \ufb01gures are presented outside
\nparentheses, followed by the comparative \ufb01gures presented
\nin parentheses.
\nThe consolidated \ufb01nancial statements have been prepared
\nbased on the going concern assumption.
\nForeign currency translation
\nEach entity in the group determines its functional currency
\nbased on the economic environment in which it operates,
\nand items included in the \ufb01nancial statements of each entity
\nare measured using that functional currency. When preparing
\nthe \ufb01nancial statements of each individual group entity,
\ntransactions in currencies other than the entity's functional
\ncurrency are recognised in the functional currency, using the
\ntransaction date\u2019s currency rate.
\nMonetary items denominated in foreign currencies are
\ntranslated to each entity's functional currency using the
\nclosing rate at the end of the reporting period, and any gains
\n(losses) are reported in the statement of pro\ufb01t or loss. Non-
\nmonetary items that are measured at fair value in a foreign
\ncurrency are translated using the exchange rate at the date
\nwhen the fair value was measured. Currency gains (losses)
\nrelated to operating activities, i.e. receivables, payables, bank
\naccounts for operating purposes including current intragroup
\nbalances, are recognised as a part of other items. Currency
\ne\ufb00ects recognised in \ufb01nance income and expenses are only
\nrelated to \ufb01nancing activities such as loans, lease liabilities,
\nlong-term placements and dividends.
\nForeign currency di\ufb00erences are recognised in other
\ncomprehensive income for the following items:
\n\u2192
a \ufb01nancial asset or liability designated as a hedging
\ninstrument in a cash \ufb02ow hedge, to the extent that the
\nhedge is e\ufb00ective
\n\u2192
loans in foreign currencies designated as hedging
\ninstruments in a hedge of a net investment in a
\nforeign operation
\nIn consolidation of the statement of pro\ufb01t or loss and the
\nstatement of \ufb01nancial position, separate group entities with
\nother functional currency than the group's presentation
\ncurrency, are translated directly into the presentation
\ncurrency as follows:
\n\u2192
Assets and liabilities are translated using the exchange
\nrate at the end of the reporting period
\n\u2192
Income and expenses are translated using an average
\nexchange rate per month
\n\u2192
Equity transactions, except for pro\ufb01t or loss for the
\nperiod, are translated using the transaction date rates
\nAll resulting exchange di\ufb00erences are booked as a separate
\ncomponent in other comprehensive income (OCI)
\nAny goodwill arising on acquisition of a foreign operation and
\nany fair value adjustment to the carrying amount of assets and
\nliabilities arising on the acquisition, are treated as assets and
\nliabilities of the foreign operations. On disposal of a foreign
\nentity, the deferred cumulative amount recognised in other
\ncomprehensive income relating to that particular foreign
\noperation, is recognised in the statement of pro\ufb01t or loss.
\nStatement of cash \ufb02ows
\nThe statement of cash \ufb02ows is prepared under the indirect
\nmethod. Cash in\ufb02ows and out\ufb02ows are shown separately for
\ninvesting and \ufb01nancing activities, while operating activities
\ninclude both cash and non-cash e\ufb00ect items. Interest received
\nand paid and other \ufb01nancial expenses, such as bank guarantee
\nexpenses, are reported as a part of operating activities. Net
\ncurrency gains or losses related to \ufb01nancing activities are
\nreported as part of \ufb01nancing activities. Dividends received from
\njoint ventures and associates that do not operate within Elkem's
\nmain business areas are included in investing activities.
\nDividend to shareholders
\nDividend is recognised as a liability when the shareholders'
\nright to payment is established, which is when the dividend is
\napproved by the General Meeting.
\nChanges in accounting policies and correction
\nof material errors
\nChanges in accounting policies and correction of material errors
\nare recognised retrospectively by restating the comparative
\namounts for the prior period presented, including the opening
\nbalance of the prior year.
\nChanges in accounting policy
\nThe IFRS Interpretations Committee (IFRIC) published an
\nagenda decision in April 2021 \u201cCon\ufb01guration or Customisation
\nCosts in a Cloud Computing Arrangement (IAS 38 Intangible
\nAssets)\u201d, con\ufb01rming that a cloud computing customer should
\nexpense the costs of con\ufb01guring or customising a supplier\u2019s
\napplication software in a Software as a Service arrangement.
\nFrom 1.1.2022 Elkem has applied this policy for costs related
\nto the implementation of cloud computing. Following the
\naccounting policy change NOK 24 million was adjusted
\ntowards opening balance of equity in second quarter of 2022.
\nDue to materiality comparable \ufb01gures are not restated.
\nChange in presentation
\nPresentation of realised hedge ine\ufb00ectiveness is changed
\nfrom raw materials and energy for production to other items
\nin the statement of pro\ufb01t and loss. The change is done to
\npresent realised e\ufb00ects together with unrealised e\ufb00ects from
\nine\ufb00ectiveness. The impact from realised ine\ufb00ectiveness has
\nnot been material in previous years. Comparable \ufb01gures are
\nrestated. See note 34 Changes in accounting policies.
\nNew and revised standards - adopted
\nNew or revised accounting standards and interpretations
\nimplemented as of 1 January 2022 are among others Onerous
\nContracts \u2013 Costs of Ful\ufb01lling a Contract (Amendments to IAS
\n37) and Proceeds before Intended Use (Amendments to IAS 16
\nProperty, plant and equipment). The new or revised accounting
\nstandards and interpretations do not represent a signi\ufb01cant
\nimpact to Elkem's accounting policies.
\nNew standards, interpretations and amendments
-
\nnot yet e\ufb00ective
\nThe consolidated \ufb01nancial statements will be a\ufb00ected by
\nfuture changes in IFRS. No standards, interpretations or
\namendments published at the balance sheet date are
\nexpected to have signi\ufb01cant e\ufb00ect on the group.
Principle
\nConsolidation
\nThe consolidated \ufb01nancial statements include the \ufb01nancial
\nstatements of Elkem ASA and entities controlled directly or
\nindirectly by Elkem ASA. The group controls an entity when the
\ngroup is exposed to, or has rights to, variable returns from its
\ninvolvement with the entity and has the ability to a\ufb00ect those
\nreturns through its power over the entity. Subsidiaries are fully
\nconsolidated from the date on which the group obtains control,
\nand are deconsolidated from the date that control ceases.
\nPro\ufb01t or loss and each component of OCI are attributed to
\nthe equity holders of the parent of the group and to non-
\ncontrolling interests, presented on separate lines in the
\n\ufb01nancial statements.
\nAll intra-group assets and liabilities, equity, income
\nand expenses and gains and losses are eliminated in
\nfull on consolidation.
\nBusiness combinations
\nBusiness combinations are accounted for using the
\nacquisition method in accordance with IFRS 3. The
\nconsideration transferred in a business combination is
\nmeasured at fair value, and goodwill is measured as the
\nexcess of the sum of consideration transferred, and net
\nidenti\ufb01able fair value of transferred assets and liabilities.
\nElkem's contingent consideration is classi\ufb01ed as a \ufb01nancial
\nliability and measured at fair value at the acquisition date.
\nThe liability is subsequently measured at fair value at each
\nreporting date, with changes recognised in other items in
\nthe statement of pro\ufb01t or loss. Acquisition-related costs are
\nexpensed as incurred.
\nAcquisitions of non-controlling interests are accounted for
\nas transactions with owners in their capacity as owners, and
\ntherefore no goodwill is recognised as a result. Adjustments
\nto non-controlling interests arising from transactions that do
\nnot involve the loss of control, are based on a proportionate
\namount of the net assets of the subsidiary.
\nDuring a measurement period of maximum one year
\nprovisional amounts recognised at the acquisition date are
\nadjusted to re\ufb02ect new information obtained about facts and
\ncircumstances that existed on the date of acquisition. Any
\nadjustments of identi\ufb01ed assets or liabilities in the acquisition
\nare o\ufb00set by a corresponding increase / decrease in goodwill.
\nBusiness combinations under common control
\nBusiness combinations involving entities under common
\ncontrol are accounted for on a historical cost basis. This
\nmeans applying book value accounting, which is applied in
\nthe following manner:
\n\u2192
Assets and liabilities of the combining entities are
\nre\ufb02ected at their carrying amounts.
\n\u2192
No new goodwill is recognised as a result of
\nthe combination.
\n\u2192
The statement of pro\ufb01t or loss re\ufb02ects the result of
\nthe combining entities for the full year, irrespective
\nof when the combination took place.
\n\u2192
Comparative \ufb01gures are restated.
\n\u2192
The purchase price is booked against equity at
\nthe acquisition date.
Principle
\nJoint arrangements
\nInvestments in joint arrangements are classi\ufb01ed as either joint
\noperations or joint ventures, depending on the contractual
\nrights and obligations of each investor.
\nJoint ventures are accounted for using the equity method.
\nUnder the equity method, the investment is initially recognised
\nat cost, and the carrying amount is increased or decreased
\nto recognise Elkem's share of the pro\ufb01t or loss, and other
\ncomprehensive income of the investee after the date of
\nacquisition. In cases where a joint venture's loss or other
\ncomprehensive income exceed the initially recognised cost
\nthe carrying amount is presented to re\ufb02ect Elkem's liability
\nto \ufb01nance the joint venture only to the extent that Elkem has
\nan obligation to fund the investees operations. Any liability to
\n\ufb01nance a joint venture is presented either as part of provisions
\nand other liabilities, current, or netted against Elkem's
\nreceivables towards the joint venture.
\nThe group's interest in joint operations is recognised in relation
\nto its interests in the joint operation:
\n\u2192
Assets, including its share of any assets held jointly
\n\u2192
Liabilities, including its share of any liabilities incurred jointly
\n\u2192
Revenue from the sale of its share of the output arising
\nfrom the joint operation
\n\u2192
Expenses, including its share of any expenses
\nincurred jointly
\nInvestments in associates
\nAssociates are those entities in which the group has signi\ufb01cant
\nin\ufb02uence, but no control over the \ufb01nancial and operating
\npolicies. Signi\ufb01cant in\ufb02uence is presumed to exist when the
\ngroup holds between 20% and 50% of the voting power
\nof another entity. Investments in associates are accounted
\nfor using the equity method. Under the equity method, the
\ninvestment is initially recognised at cost, and the carrying
\namount is increased or decreased to recognise the investor\u2019s
\nshare of the pro\ufb01t or loss and other comprehensive income
\nof the investee after the date of acquisition. In cases where
\nan associates' loss or other comprehensive income exceed
\nthe initially recognised cost the carrying amount is presented
\nto re\ufb02ect Elkem's liability to \ufb01nance the associate only to the
\nextent that Elkem has an obligation to fund the investees
\noperations. Any liability to \ufb01nance an associate is presented
\neither as part of provisions and other liabilities, current, or
\nnetted against Elkem's receivables towards the associate. The
\ngroup\u2019s investments in associates includes goodwill identi\ufb01ed
\non acquisition.
\nUpon disposal of an associate that results in the group
\nlosing signi\ufb01cant in\ufb02uence over that associate, any retained
\ninvestment is measured at fair value at that date.
\nShare of pro\ufb01t from investments in associates
\nand joint ventures
\nShare of pro\ufb01t (loss) from investments in associates and
\njoint ventures is recognised in the statement of pro\ufb01t or loss
\ndepending on the purpose of the investments. Investments
\nthat are closely related to the group's main activities are
\nrecognised as share of pro\ufb01t from equity accounted
\ncompanies, included in operating income. Investments in
\nassociates and joint ventures that do not operate within
\nElkem's main business areas are recognised as share of pro\ufb01t
\nfrom equity accounted \ufb01nancial investments.
Principle
\nElkem identi\ufb01es its segments according to the organisation
\nand reporting structure as decided and followed up by group
\nmanagement. Operating segments are components of a
\nbusiness that are evaluated regularly by the chief operating
\ndecision maker, de\ufb01ned as the CEO, for the purpose of
\nassessing performance and allocating resources. Elkem's
\noperating segments represent separately managed business
\nareas with unique products serving di\ufb00erent markets.
\nSegment performance is evaluated based on EBITDA which is
\nthe primary segment result and operating pro\ufb01t (loss) before
\nother items (EBIT), see de\ufb01nitions below. Elkem's \ufb01nancing
\nand income tax are managed on group basis and are not
\nallocated to operating segments.
\nTransactions between operating segments are conducted on
\nan arm's length basis in a manner similar to transactions with
\nthird parties.
\nRevenues are, in addition, disaggregated by geographical
\nmarket based on the location of the customer.
\nNon-current assets by geographical areas are based on the
\nlocation of the entity owning the assets.
\nThe segment reporting is based on the accounting policies
\napplied for the group with the exception of:
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and from
\nthe discontinuation of hedging is included in other items
\nin Elkem's statement of pro\ufb01t and loss, but included in
\noperating expenses in the segment reporting. This is because
\nmanagement follows up the operating segments including the
\nimpact of the realised e\ufb00ects from power contracts. Elkem has
\npreviously included realised e\ufb00ects from discontinuation of
\nhedging in other items for both group and operating segments.
\nThe change in presentation does not impact comparable
\n\ufb01gures for 2021.
\nLease payments under internal lease agreements are
\nrecognised as operating expenses on a straight-line basis over
\nthe lease term.
Principle
\nOperating income consists of:
\na.
Revenue
\nb.
Other operating income
\nc.
Share of pro\ufb01t (loss) from equity
\naccounted investments (note 5)
\n(a) Revenue
\nRevenue is measured based on the consideration speci\ufb01ed in
\na contract with a customer. Elkem recognises revenue when
\nElkem transfers control over a goods or service to a customer.
\nA \ufb01ve-step process is applied before revenue can be recognised:
\n\u2192
identify contracts with customers
\n\u2192
identify the separate performance obligation
\n\u2192
determine the transaction price of the contract
\n\u2192
allocate the transaction price to each of the separate
\nperformance obligations, and
\n\u2192
recognise the revenue as each performance obligation
\nis satis\ufb01ed.
\nSale of goods
\nElkem's main performance obligation is related to sale of goods
\nwhere the obligation is to deliver agreed volume of products
\nwithin the agreed speci\ufb01cation. Elkem has both short-term and
\nlong-term contracts. Short-term contracts, normally within one
\nmonth, cover delivery of an agreed volume at market price at
\nthe date the order is placed. These types of contracts are most
\ncommon for commodity products, such as sales of ferrosilicon
\nand silicones and sales to customers in China. The long-term
\ncontracts cover a period of a few months and up to one year,
\nwhere the prices normally are \ufb01xed within a volume range.
\nElkem has for sale of metallurgical silicon some contracts that
\ncover a period longer than one year. In these contracts the
\nprices are normally negotiated on an annual basis. Some of
\nElkem's sales contracts include an element of freight services,
\nsee separate section below for accounting policies.
\nRevenue is recognised when control of the goods is transferred
\nto the customer, at an amount that re\ufb02ects the consideration
\nto which Elkem expects to be entitled in exchange for those
\ngoods. Control is transferred to the buyer, according to the
\nagreed delivery term for each sale. Delivery terms are based
\non Incoterms 2020 issued by International Chamber of
\nCommerce, and the main terms are:
\n\"F\" terms, where the buyer arranges and pays for the main
\ncarriage. The risk is transferred to the buyer when the goods
\nare handed to the carrier engaged by the buyer.
\n\"C\" terms, where the group arranges and pays for the main
\ncarriage but without assuming the risk of the main carriage.
\nThe risk is transferred to the buyer when the goods are handed
\nover to the carrier engaged by the seller.
\n\"D\" terms, where the group arranges and pays for the
\ncarriage and retains the risk of the goods until delivery at
\nthe agreed destination. The ownership is transferred to the
\nbuyer upon arrival at the agreed destination, usually the
\npurchaser's warehouse.
\nThe goods are normally sold with standard warranties that
\nthe goods comply with the agreed-upon speci\ufb01cations. These
\nstandard warranties are accounted for using IAS 37 Provisions,
\nContingent Liabilities and Contingent Assets. Elkem does not
\nhave any other signi\ufb01cant obligations for returns or refunds.
\nFreight services included in sale of goods
\nFreight components included in sale of goods on incoterms
\n\"C\" terms are considered as a separate performance obligation
\nand recognised over the period the service is performed.
\nShipping and handling services that occur before the
\ncustomer takes control of the goods for sales on \"D\" terms are
\nconsidered to be part of ful\ufb01lling the sale of the goods.
\nSale of power and revenue connected to energy recovery
\nSale of electric power and revenue connected to energy
\nrecovery, mainly heat supply in the form of steam and hot
\nwater, el-certi\ufb01cates and el-tax, are recognised in income
\nbased on volume and price agreed with the customer. Revenue
\nconnected to energy recovery is mainly based on long-term
\ncontracts where the prices are regulated yearly based on
\nchanges in CPI or government regulated prices, except for
\nthe el-certi\ufb01cates where the price is based on the observable
\nmarket price at date of delivery.
\nRevenue from sale of services
\nRevenue from sale of services is recognised when the services
\nhave been provided. Sale of services are mainly related to
\nmanagement agreements with related parties based on a cost
\nplus a margin and sale of shipping and handling related services.
\n(b) Other operating income
\nInsurance settlements
\nIncome from insurance settlements are recognised as other
\noperating income when it is virtually certain that the group will
\nreceive the compensation. Expected cash \ufb02ows from credit
\ninsurance contracts where such contracts are deemed to be an
\nintegral part of the sale transactions is presented net against
\nimpairment losses trade and other receivables, included in
\nother operating expenses. See note 21 Trade receivables.
\nGrants
\nSee note 8 Grants
Principle
\nGrants are recognised when it is reasonably assured that
\nElkem will comply with the conditions attached to them
\nand the grants will be received. Grants are recognised in the
\nstatement of pro\ufb01t or loss as other operating income, over
\nthe periods necessary to match them with the cost they are
\nintended to compensate.
\nTax credits related to R&D projects are classi\ufb01ed as
\ngovernment grants in other operating income if they
\nultimately are settled with cash, tax credits settled only via
\ntaxes are classi\ufb01ed as tax allowances. Grants relating to cost
\nof production of goods are recognised as other operating
\nincome when the produced goods are sold. Grants relating to
\nproperty, plant and equipment (\ufb01xed assets) and intangible
\nassets are deducted from the carrying amount of the asset and
\nrecognised in pro\ufb01t or loss as a reduction of the depreciation
\ncharge over the lifetime of the asset.
Principle
\nEmployee bene\ufb01ts
\nEmployee bene\ufb01ts are all forms of considerations given by an
\nentity in exchange for service rendered by employees or for
\ntermination of employment.
\nEmployee bene\ufb01ts include both current and non-current
\nbene\ufb01ts, and are expensed as incurred, together with any
\nsocial security taxes applicable.
\nCurrent bene\ufb01ts consist of wages and salaries, bonuses,
\nholiday payments and other short-term bene\ufb01ts that are
\nexpected to be settled within 12 months after the reporting
\nperiod. Non-current bene\ufb01ts consist mainly of jubilee and
\nlong-service bene\ufb01ts, post-employment bene\ufb01ts and post-
\nretirement bene\ufb01ts, not expected to be wholly settled within
\nthe next 12 months.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans comprise of arrangements whereby
\nthe company makes monthly contributions to the employees'
\npension plans, and where the future pensions are determined by
\nthe amount of the contributions and the return on the individual
\npension plan asset. The contributions are expensed as incurred
\nand there is no further obligation related to the contribution
\nplans. Prepaid contributions are recognised as an asset.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where Elkem is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. De\ufb01ned bene\ufb01t plans are
\nrecognised at present value of future liabilities considered
\nretained at the end of the reporting period, calculated
\nseparately for each plan. Plan assets are measured at fair
\nvalue and deducted in calculating the net pension obligation.
\nPension plans with a net asset and no o\ufb00setting rights are
\npresented as a part of other assets. Actuarial assumptions
\nare used to measure both the obligation and the expense and
\ne\ufb00ects of changes in estimates due to \ufb01nancial and actuarial
\nassumptions are recognised as other comprehensive income.
\nPast service costs arising due to amendments in bene\ufb01t plans
\nare expensed as incurred. Service costs are recognised as
\npart of employee bene\ufb01t expenses. Net interest is calculated
\nbased on net pension obligations at the start of the period,
\nmultiplied by the discount rate. Any di\ufb00erence between actual
\nreturn on pension assets and the interest income calculated
\nas a part of the net interest, will be recognised directly in other
\ncomprehensive income. Interest on net pension obligations are
\npresented as a part of \ufb01nance expenses.
\nMulti-employer de\ufb01ned bene\ufb01t plans where available
\ninformation is insu\ufb03cient to be able to calculate each
\nparticipant's obligation, are accounted for as contribution plans.
Principle
\nThe fair value of options granted under the share-based
\npayment programme is recognised as an employee bene\ufb01t
\nexpense with a corresponding increase in equity for equity
\nsettled awards. The total amount to be expensed is determined
\nby reference to the fair value of the options granted. The total
\nexpense is recognised over the vesting period, which is the
\nperiod over which all of the speci\ufb01ed vesting conditions are
\nto be satis\ufb01ed. At the end of each period, the entity revises its
\nestimates of the number of options that are expected to vest
\nbased on the non-market vesting and service conditions. It
\nrecognises the impact of the revision to original estimates, if
\nany, in the statement of pro\ufb01t or loss, with a corresponding
\nadjustment to equity.
\nSocial security contributions payable in connection with an
\noption grant are considered an integral part of the grant itself
\nand the charges are treated as cash-settled transactions.
Principle
\nOther gains (losses)
\nOther gains (losses) consists of changes in fair value of \ufb01nancial
\ninstruments that are not designated as a part of a hedging
\nrelationship, any ine\ufb00ective part of hedging relationships,
\ne\ufb00ects from discontinuation of hedging and foreign exchange
\ngains (losses) related to operating activities such as trade
\nreceivables, trade payables, bank accounts / overdrafts. Foreign
\nexchange gains (losses) related to \ufb01nancing activities, mainly
\ninterest-bearing liabilities and group loans, are classi\ufb01ed as a
\npart of \ufb01nancial income and expenses.
\nOther income (expenses)
\nOther income and (expenses) consists of transactions and
\nevents that are related to acquisition of business, gains /
\n(losses) on disposal of businesses, restructuring programme
\nand pro\ufb01t and loss e\ufb00ects from other shares. In addition,
\nperformance incentives for Elkem employees related to such
\nitems. Cost related to liquidated / wound-up businesses, costs
\nof public requirements or updated regulations related to events
\n/ periods before purchase of the business, e.g., environmental
\nmeasures, are included in other income and expenses.
\nAcquisition related costs may include both costs related to
\nacquisitions done, not completed and cancelled projects.
\nInvestments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares. Dividends from
\nsuch shares are recognised when shareholders' right to receive
\ndividends is determined by the shareholder's meeting. Fair
\nvalue changes in other shares related to listed companies are
\nrecognised as other income (expenses).
Principle
\nInterest income is recognised on an accrual basis and is
\nclassi\ufb01ed as \ufb01nance income.
\nForeign exchange gains (losses) related to \ufb01nancing activities
\nincluding group loans are classi\ufb01ed as a part of \ufb01nancial
\nincome and expenses, and foreign exchange gains (losses)
\nrelated to operations are classi\ufb01ed as a part of other items.
\nInterest expenses are recognised on an accrual basis using
\nthe e\ufb00ective interest method and are classi\ufb01ed as \ufb01nancial
\nexpenses. Interest is capitalised as a part of the carrying
\namount of a self-constructed item of property, plant and
\nequipment when the construction period takes a substantial
\nperiod of time, meaning more than 9-12 months, depending on
\nthe total amount, and borrowing costs are being incurred.
\nFinancial expenses also include interest on net pension
\nliabilities, unwinding of discounted provisions and contingent
\nconsideration acquisition of subsidiaries, and interest on lease
\nliabilities.
Principle
\nIncome taxes
\nCurrent tax assets and liabilities are measured at the amount
\nexpected to be recovered from or paid to the tax authorities.
\nCurrent tax payables includes any adjustment to tax payable
\nin respect of previous years. Income tax is recognised in the
\nstatement of pro\ufb01t or loss except to the extent that it relates to
\nitems recognised directly in equity or in other comprehensive
\nincome. The group includes deductions for uncertain tax
\npositions when it is probable that the tax position will be
\nsustained in a tax review. The group records provisions relating
\nto uncertain or disputed tax positions at the amount expected
\nto be paid. The provision is reversed if the disputed tax position
\nis settled in favour of the group and can no longer be appealed.
\nPenalties and interest related to income taxes are recognised as
\nincome tax (expense) bene\ufb01t in the statement of pro\ufb01t or loss.
\nAccrued penalties and interest are recognised in the statement
\nof \ufb01nancial position in income tax payable and provisions for
\nthe current and non-current portions respectively.
\nDeferred tax
\nDeferred tax assets and liabilities are calculated using the
\nliability method with full allocation of all temporary di\ufb00erences
\nbetween the tax base and the carrying amount of assets
\nand liabilities in the \ufb01nancial statements, including tax
\nlosses carried forward. Deferred tax relating to items outside
\nstatement of pro\ufb01t or loss are recognised in correlation with
\nthe underlying transaction either in other comprehensive
\nincome or directly in equity. Deferred tax assets and liabilities
\nare not recognised if the temporary di\ufb00erence arises from
\nthe initial recognition of goodwill. Deferred tax assets are
\nrecognised in the statement of \ufb01nancial position to the extent
\nthat it is more likely than not that the tax assets will be utilised
\nagainst deferred tax liabilities or future taxable income.
\nDeferred tax assets arising from tax losses are recognised
\nwhen there is convincing evidence of recoverability. The tax
\nrates substantively enacted at the end of the reporting period
\nand undiscounted amounts are used. Deferred tax assets
\nand liabilities are o\ufb00set if there is a legally enforceable right
\nto o\ufb00set current tax liabilities and assets, and Elkem intends
\nto settle current tax liabilities and assets on a net basis, or to
\nrealise the tax assets and settle the liabilities simultaneously.
\nDeferred tax assets are reviewed at each reporting date and
\nare reduced to the extent that it is no longer probable that the
\nrelated tax bene\ufb01t will be realised; such reductions are reversed
\nwhen the probability of future taxable pro\ufb01ts improves.
Principle
\nProperty, plant and equipment
\nProperty, plant and equipment (PPE) are stated in the
\nconsolidated statement of \ufb01nancial position at cost less
\naccumulated depreciation and accumulated impairment
\nlosses. PPE acquired in business combinations are recognised
\nat fair value at the acquisition date. PPE acquired in a business
\ncombination under common control are re\ufb02ected at their
\ncarrying amounts. Assets in the course of construction are
\ncarried at cost less any recognised impairment loss. Such
\nassets are classi\ufb01ed to the appropriate categories of PPE when
\ncompleted and ready for the intended use. When signi\ufb01cant
\nparts of an item of PPE have di\ufb00erent useful lives, they are
\naccounted for as separate items.
\nInitial cost includes expenditures that are directly attributable
\nto the acquisition of the asset, cost of materials, direct labour,
\nany other costs directly attributable to bringing the assets
\nto working condition for their intended use and estimated
\ndismantling or removal charges.
\nSubsequent costs are included in the asset's carrying amount
\nor recognised as a separate asset, as appropriate, when future
\nbene\ufb01ts are probable and the cost can be measured reliably.
\nThe carrying amount of the replaced part is derecognised.
\nMajor periodic maintenance that is carried out less frequently
\nthan every year, is capitalised and depreciated over the period
\nuntil the next periodic maintenance is performed. All other
\nrepairs and maintenance are charged to the statement of pro\ufb01t
\nor loss when incurred.
\nDepreciations are calculated based on estimated useful life
\nand expected residual value for each item of PPE and are
\nrecognised in the statement of pro\ufb01t or loss using the straight-
\nline method. The estimated useful lives, residual values (if
\nany) and depreciation method are reviewed, and if necessary
\nadjusted, at least annually. Depreciation commences when the
\nassets are ready for their intended use.
\nAn item of PPE is derecognised upon disposal or when no
\nfuture economic bene\ufb01ts are expected to arise from the
\ncontinued use of the asset. Any gain or loss arising on disposal
\nor retirement of PPE, determined as the di\ufb00erence between
\nthe sales proceeds and the carrying amount of the asset, is
\nrecognised under other operating income or other operating
\nexpenses in the statement of pro\ufb01t or loss.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.
Principle
\nRight-of-use assets are presented separately in the statement
\nof \ufb01nancial position, whereas lease liabilities are recognised in
\ninterest-bearing liabilities.
\nRight-of-use-assets
\nElkem`s policy in general is to own critical assets related to
\nthe production cycle, including production buildings and
\nland where this is not controlled by the local government or
\nother parties. The group`s main lease contracts comprise
\no\ufb03ce buildings and machinery / storage assets to be used at
\nproduction sites. The less signi\ufb01cant lease contracts comprise
\nemployee cars, machinery and equipment.
\nElkem assesses at contract inception whether a contract is,
\nor contains, a lease. That is, if the contract conveys the right
\nto control the use of an identi\ufb01ed asset for a period of time in
\nexchange for consideration.
\nElkem applies single recognition and measurement approach
\nfor all leases, except for:
\n\u2192
Lease contracts for which the lease term ends within
\n12 months as of the date of initial application are not
\ncapitalised (short-term leases). Elkem's short-term
\nlease commitments are mainly related to rental
\nof equipment in connection with maintenance or
\ninstallation of new equipment.
\n\u2192
Lease contracts for which the underlying asset is of low
\nvalue, mainly o\ufb03ce equipment, are not capitalised.
\n\u2192
Lease of intangible assets are not capitalised.
\n\u2192
Lease payments on contracts that are not capitalised
\nare recognised as other operating expenses on a straight-
\nline basis over the lease term.
\nElkem recognise right-of-use assets at the commencement
\ndate of the lease (i.e., the date the underlying assets is
\navailable for use). Right-of-use assets are measured at cost,
\nless any accumulated depreciation and impairment losses, and
\nadjusted for any remeasurement of lease liabilities. The cost
\nof right-of-use assets includes the amount of lease liabilities
\nrecognised, initial direct costs incurred, and lease payments
\nmade at or before the commencement date less any lease
\nincentives received. Right-of-use assets are depreciated on a
\nstraight-line basis from the commencement date to the earlier
\nof the lease term and the remaining useful life of the right-of-
\nuse asset for assets where Elkem does not obtain ownership
\nof the leased asset at the end of the lease term. Depreciation
\nexpense on the right-of-use asset is presented as depreciation
\nin the statement of pro\ufb01t or loss. Right-of-use assets are
\nsubject to impairment assessments as described in note 19
\nImpairment assessment.
\nLease liabilities
\nAt the commencement date of a lease, Elkem recognise
\nlease liabilities measured at the present value of the lease
\npayments to be made over the lease term. The lease payments
\ninclude \ufb01xed payments (less any lease incentives receivable),
\nvariable lease payments that depend on an index or a rate, and
\namounts expected to be paid under residual value guarantees.
\nNon-lease components like insurance, electricity and other
\nproperty-related expenses to be paid to landlord are excluded
\nfrom the lease commitment for o\ufb03ces. The lease payments
\nalso include the exercise price of a purchase option reasonably
\ncertain to be exercised by Elkem and payments of penalties
\nfor terminating the lease, if the lease term re\ufb02ects exercising
\nthe option to terminate. Variable lease payments that do not
\ndepend on an index or a rate are recognised as expenses in
\nthe period in which the event or condition that triggers the
\npayment occurs. Elkem uses the incremental borrowing rate
\nat the lease commencement date if the interest rate implicit
\nin the lease cannot be readily determined. The incremental
\nborrowing rate is based on the respective country's risk-free
\nrate for the term corresponding to the lease term, adjusted
\nfor own credit risk. Updated incremental borrowing rates are
\napplied to new lease contracts recognised on a quarterly basis.
\nLease liability is remeasured upon the occurrence of certain
\nevents like change in the lease term, lease payments or
\nreassessment of options which in general implies a change in
\nthe carrying amount of the right-of-use asset. If any changes
\nto the contractual terms and conditions; like increase of scope
\nElkem needs to assess whether the change implies a separate
\nlease if the change has a standalone price. The existing right-
\nof-use asset is adjusted if the increase of scope does not
\nindicate a standalone price or for any other modi\ufb01cations.
Principle
\nIntangible assets are stated in the consolidated \ufb01nancial
\nstatements at cost less accumulated amortisation and
\naccumulated impairment losses. Intangible assets acquired
\nin business combinations are recognised at fair value at the
\nacquisition date. Intangible assets with a \ufb01nite useful life are
\namortised, using the straight-line method, commencing when
\nthe asset is available for use. Assets that are an integral part of
\na group of assets are amortised from the date the related asset
\ngroup as a whole is ready for its intended use. Such assets are
\nimpairment tested annually.
\nThe estimated useful lives are reviewed at the end of each
\nreporting period.
\nAn intangible asset is derecognised on disposal, or when the
\ngroup expects no future economic bene\ufb01ts to be derived from
\nits use. Gain or loss arising from derecognition of an intangible
\nasset, measured as the di\ufb00erence between the net disposal
\nproceeds and the carrying amount of the asset, is recognised
\nin other operating income or other operating expenses in the
\nstatement of pro\ufb01t or loss.
\nExpenditure on research activities is recognised as an expense
\nin the period in which it is incurred. An intangible asset arising
\nfrom an internal development project is recognised in the
\nstatement of \ufb01nancial position if the group can demonstrate
\ntechnical feasibility of completing the intangible asset, has the
\nintention to complete it, ability to use it, can demonstrate that
\nit will generate probable future economic bene\ufb01ts and the cost
\ncan be reliably measured. Expenditures related to research and
\ndevelopment activities, see note 11 Other operating expenses.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.
Principle
\nGoodwill
\nGoodwill is initially measured as the excess of the cost of an
\nacquisition over the group's share of the fair values of the
\nacquired entity's net identi\ufb01able assets at the acquisition
\ndate. If the fair value of the group\u2019s interest in the net assets
\nof the acquired subsidiary exceeds the cost of the acquisition
\n(negative goodwill), the di\ufb00erences are recognised directly in
\nthe statement of pro\ufb01t or loss as other items. Goodwill is carried
\nat cost less accumulated impairment losses. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.
Principle
\nImpairment exists when the carrying value of an asset or
\ncash generating unit (CGU) exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and
\nits value in use. The fair value less cost of disposal calculation
\nis based on data from binding sales transactions, conducted
\nat arm\u2019s length for similar assets or observable market prices
\nless incremental costs of disposing the asset. The value in
\nuse calculation is based on a DCF model. The cash \ufb02ows are
\nderived from the budget for the next \ufb01ve years and do not
\ninclude restructuring activities that Elkem is not yet committed
\nto or signi\ufb01cant future investments that will enhance the
\nperformance of the assets of the CGU being tested. A long-
\nterm growth rate is calculated and applied to project future
\ncash \ufb02ows after the \ufb01fth year.
\nA CGU is the smallest group of assets that generates cash
\nin\ufb02ows from continuing use that are largely independent of the
\ncash in\ufb02ows of other assets.
\nIndicators of impairment will typically be changes in
\ntechnological development, changes in market conditions and
\nchanges in the competitive situation.
\nImpairment loss and reversal of previous impairment losses
\nare recognised as impairment losses in the statement of
\npro\ufb01t or loss.
\nGoodwill
\nGoodwill arising from a business combination is allocated
\nto CGUs or groups of CGUs that are expected to bene\ufb01t
\nfrom the synergies of the combination. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nIntangible assets, property plant and equipment and
\nright-of-use assets
\nIntangible assets with inde\ufb01nite useful lives are tested for
\nimpairment annually, or more frequently when there is an
\nindication of impairment. For the other non-\ufb01nancial assets
\nElkem assess, at each reporting date, whether there is
\nan indication that an asset may by impaired. A previously
\nrecognised impairment loss is reversed only if there has been
\na change in the assumptions used to determine the asset\u2019s
\nrecoverable amount since the last impairment loss was
\nrecognised. The reversal is limited so that the carrying amount
\nof the asset does not exceed its recoverable amount, nor
\nexceed the carrying amount that would have been determined,
\nnet of depreciation, had no impairment loss been recognised
\nfor the asset in prior years.
Principle
\nInventories are measured at the lower of cost and net realisable
\nvalue. Inventory consists of raw materials, semi-\ufb01nished
\ngoods and \ufb01nished goods, in addition to operating materials
\nand spare parts that do not meet the de\ufb01nition of property,
\nplant and equipment. Raw materials, and operating materials
\nand spare parts, are recognised at cost of purchase including
\ntransport and handling to their present location. Finished and
\nsemi-\ufb01nished goods are measured at cost of raw materials,
\nenergy for production and cost of conversion up to the actual
\ncompletion stage. Cost of conversion comprise operating
\nexpenses directly related to production of the products and
\nan allocation of direct \ufb01xed operating expenses. The cost of
\nCO
\n2
\nallowances that Elkem needs to purchase in addition to
\nallowances received from the government (note 8), are based
\non estimated production / emissions for the year. The cost is
\nallocated to cost of conversion proportionally over the year as
\nthe number of allocated allowances will not be revised unless
\nthere is a substantial change in the production level at the
\nplants. Net realisable value represents the estimated selling
\nprice for inventories less estimated costs of completion and
\nvariable selling expenses.
\nCost of goods sold is recognised in di\ufb00erent lines in the
\nstatement of pro\ufb01t or loss based on nature; raw materials and
\nenergy for production, employee bene\ufb01ts and other operating
\nexpenses. Actual cost of conversion related to goods sold is
\nreported net of change in cost of conversion in inventory and is
\nincluded in other operating expenses.
\nEntities within the group sell goods to other group entities,
\nconsequently \ufb01nished goods from one entity become raw
\nmaterials or semi-\ufb01nished goods for another group entity. The
\nclassi\ufb01cation of goods in the group's statement of \ufb01nancial
\nposition is based on the separate entity's classi\ufb01cation.
Principle
\nTrade and bills receivables are initially recognised at transaction
\nprice, which in most cases corresponds to their nominal amount.
\nThe carrying amount is subsequently measured at amortised
\ncost using the e\ufb00ective interest rate method, less any provision
\nfor expected credit losses. Current receivables with no stated
\ninterest rate are recognised at their nominal amount.
\nA bill receivable is a document where the customer formally
\nagrees to pay for delivered goods or services at maturity
\ndate and are normally guaranteed by a \ufb01nancial institution.
\nA bill receivable is transferable and can be used to pay trade
\npayables (endorsed) or be settled in cash with a \ufb01nance
\ninstitution (discounted). The bills receivables-document
\ne\ufb00ectively replaces, for the speci\ufb01ed amount, the trade
\nreceivable exchanged for the bill. Bills receivables (mainly bank
\nacceptance bills that are guaranteed by a \ufb01nancial institution)
\nare primarily used by Elkem's Chinese entities and the duration
\nis normally below six months.
\nTrade receivables are derecognised when settled, replaced
\nby bills receivable or when transferred to a third party and
\nthe group has no further risk related to the receivables. Bills
\nreceivables are derecognised when they are settled on due
\ndate or when the risk and reward are transferred to a third
\nparty. Transferral to a third party can be done by discounting
\na bill receivable before due date or by endorsing the bill
\nreceivable, meaning that it is accepted by the supplier as
\npayment for goods or services received.
\nElkem calculates the expected credit losses (ECL) for trade
\nreceivables and bills receivables in accordance with the
\nsimpli\ufb01ed approach. All expected cash \ufb02ows, including cash
\n\ufb02ows from credit insurance contracts where such contracts
\nare deemed to be an integral part of the transactions, is taken
\ninto consideration. The assessment is based on historical
\nexperienced losses adjusted for forward-looking estimates on
\nchanges in risk / probability that credit losses will occur for the
\ndi\ufb00erent customer groups /segments where applicable.
Principle
\nOther shares
\nInvestments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares and recognised in
\nother non-current assets in the statement of \ufb01nancial position.
\nOther shares consist of equity investments in both listed and
\nunlisted companies. Shares in listed companies are measured
\nat fair value through pro\ufb01t or loss. Investments in equity
\ninstruments that do not have a quoted market price in an
\nactive market are classi\ufb01ed as \ufb01nancial assets measured at fair
\nvalue through other comprehensive income (OCI). Changes in
\nfair values recognised in OCI cannot be subsequently recycled
\nto statement of pro\ufb01t or loss. Dividends from such investments
\nare recognised as other items in the statement of pro\ufb01t or loss.
\nFinancial assets
\nA \ufb01nancial asset is recognised in the statement of \ufb01nancial
\nposition when Elkem becomes party to a contract. Assets to
\nbe acquired in relation to a \ufb01rm commitment to sell goods
\nor services are recognised at the time Elkem has performed
\nunder the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in the
\nstatement of \ufb01nancial position at fair value plus any transaction
\ncosts directly attributable to the acquisition or issue of the
\nasset. Financial assets are derecognised once the right to
\nfuture cash \ufb02ows have expired or been transferred to a third
\nparty, and Elkem has transferred substantially all the risk and
\nrewards of control of these assets. Any rights or obligations
\nretained in any transferred assets are booked separately as
\nassets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
\nLoans and receivables
\nLoans and receivables are non-derivative hold to collect
\n\ufb01nancial assets with \ufb01xed or determinable payments that are
\nnot quoted in a regulated market. After initial recognition, they
\nare recognised at amortised cost using the e\ufb00ective interest
\nmethod. Gains and losses are recognised in the statement of
\npro\ufb01t or loss when the loans and receivables are derecognised
\nor impaired, as well as through the amortisation process.
\nIf there is objective evidence of impairment, or if there is a risk
\nthat the group may not recover the contractual amounts at the
\ncontractual maturity dates, an impairment loss is recognised
\nin the statement of pro\ufb01t or loss. The provision is equal to the
\ndi\ufb00erence between the carrying amount and the estimated
\nfuture recoverable cash \ufb02ows.
\nCurrent assets
\nCurrent receivables are initially recognised at fair value, which
\nin most cases corresponds to their nominal amount. The
\ncarrying amount is subsequently measured at amortised cost
\nusing the e\ufb00ective interest rate method, less any provision
\nfor expected credit losses. Current receivables with no stated
\ninterest rate are recognised at their nominal amount.
Principle
\nInterest-bearing liabilities
\nThe liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability. Subsequently and
\ninsofar, as they are not designated as liabilities at fair value
\nthrough pro\ufb01t or loss, such liabilities are recognised at
\namortised cost using the e\ufb00ective interest rate method.
\nFinancial assets are derecognised when the rights to
\nreceive cash \ufb02ows from the assets have expired or have
\nbeen transferred to a third party. Financial liabilities are
\nderecognised when they are extinguished.
\nBills payable
\nA bill payable is a document where the buyer formally agrees
\nto pay for purchased goods or services at maturity date and
\nare normally guaranteed by a \ufb01nancial institution. The bills
\npayable are initially recognised when the supplier accepts
\nthe bill of exchange and is recognised at the amount equal
\nto the trade payables it replaces. Bills payable are used
\nby Elkem's Chinese entities, and the duration is normally
\nbelow six months. When the bill payable is guaranteed by a
\n\ufb01nancial institution it is normally required to deposit a certain
\nper centage of the nominal value of the bill payable into a
\nrestricted bank account. All bills payable in Elkem are bank
\nacceptance bills which is guaranteed by a \ufb01nancial institution.
\nCash and cash equivalents
\nCash and cash equivalents are held for the purpose of meeting
\nshort-term \ufb02uctuations in liquidity. Deposits with a term of 3
\nmonths or less on acquisition are included. Bank overdrafts
\nare presented within interest-bearing current liabilities in
\nthe statement of \ufb01nancial position. Restricted deposits are
\npresented separately in the statement of \ufb01nancial position
\nand excluded from cash and cash equivalents presented in the
\nstatement of cash \ufb02ows.
\nLease liabilities
\nSee note 16 Leases for accounting policies for right-of-use
\nassets and lease liabilities.
Principle
\nProvisions
\nA provision is recognised when the group has a present
\nobligation (legal or constructive) and it is probable that an
\nout\ufb02ow of resources is required to settle the obligation. The
\namount recognised is the best estimate of the consideration
\nrequired to settle the obligation, taking into account the risks
\nand uncertainties surrounding the obligation, known at the end
\nof the reporting period. Provisions are measured at present
\nvalue, unless the time value is assessed to be immaterial.
\nContract obligations
\nContract obligations are liabilities assumed in business
\ncombinations, liabilities related to cancellation of contracts and
\ncontracts that includes guarantees for losses.
\nOther liabilities
\nThe liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability.
\nContingent liabilities
\nContingent liabilities are liabilities which are not recognised
\nbecause they are possible obligations that have not yet been
\ncon\ufb01rmed, or they are present obligations where an out\ufb02ow of
\nresources is not probable. Any signi\ufb01cant contingent liabilities
\nare disclosed in the notes.
\nContingent assets
\nContingent assets are not recognised but disclosed in the
\nnotes if probable.
Principle
\nFinancial assets
\nA \ufb01nancial asset or a \ufb01nancial liability is recognised in the
\nstatement of \ufb01nancial position when Elkem becomes party to
\na contract. Assets to be acquired and liabilities to be incurred
\nas a result of a \ufb01rm commitment to purchase or sell goods
\nor services are recognised at the time one of the parties has
\nperformed under the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in
\nthe statement of \ufb01nancial position at fair value plus any
\ntransaction costs directly attributable to the acquisition or
\nissue of the asset. Financial assets are derecognised when
\nthe right to future cash \ufb02ows have expired or been transferred
\nto a third party, once the group has transferred substantially
\nall the risk and rewards of control of these assets. Any rights
\nor obligations retained in any transferred assets are booked
\nseparately as assets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
\nFinancial liabilities
\nNon-derivative \ufb01nancial liabilities include interest-bearing
\nliabilities, bills payable and trade payables. The liabilities are
\ninitially recognised at fair value of the amount required to
\nsettle the associated obligation, net of prepaid costs directly
\nattributable to the liability. Subsequently and insofar, as they
\nare not designated as liabilities at fair value through pro\ufb01t or
\nloss, such liabilities are recognised at amortised cost using the
\ne\ufb00ective interest rate method.
\nFinancial liabilities are derecognised when they are extinguished.
\nDerivatives
\nDerivative \ufb01nancial assets and liabilities include \ufb01nancial
\ninstruments or contracts where the value changes in
\nresponse to the change of a speci\ufb01ed rate, price or index and
\ncommodity contracts within the scope of IFRS 9.
\nDerivatives are initially recognised at fair value at the date
\nwhen the derivative contracts are entered into. Transaction
\ncosts that are directly attributable to the acquisition of
\n\ufb01nancial assets or liabilities at fair value through pro\ufb01t or loss,
\nare recognised immediately in the statement of pro\ufb01t or loss.
\nSubsequently the derivatives are remeasured to their fair value
\nat the end of each reporting period. The resulting gain or loss
\nis recognised in the statement of pro\ufb01t or loss immediately,
\nunless the derivative is designated and is e\ufb00ective as a
\nhedging instrument, in which case the change in fair value is
\nrecognised in statement of pro\ufb01t or loss in the same period(s)
\nas the hedged objects a\ufb00ects the pro\ufb01t or loss.
\nDerivatives are presented as current assets or liabilities, unless
\nthey are expected to be realised more than 12 months after
\nthe reporting period. In that case, they are classi\ufb01ed as non-
\ncurrent assets or liabilities.
\nEmbedded derivatives
\nAn embedded derivative is a component of a hybrid instrument
\nthat also includes a non-derivative host contract with the e\ufb00ect
\nthat some of the cash \ufb02ows of the combined instrument vary in
\na way similar to a stand-alone derivative. Derivatives embedded
\nin \ufb01nancial liability of a non-\ufb01nancial host are separated from
\nthe host and accounted for as separate derivatives if; the
\neconomic characteristics and risks are not closely related to
\nthe host, a separate instrument with the same terms as the
\nembedded derivative would meet the de\ufb01nition of a derivative
\nand the hybrid contract is not measured at fair value through
\npro\ufb01t and loss. Elkem has long-term power contracts settled
\nin other currencies than the entity\u2019s functional currency. The
\ncurrency portion of these contracts is an embedded derivative
\nand is recognised and presented as an independent derivative,
\nsee section derivatives above.
\nCommodity contracts within the scope of IFRS 9
\nNon-\ufb01nancial commodity contracts where the relevant
\ncommodity is readily convertible to cash and where the
\ncontracts are not for own use, fall within the scope of IFRS 9
\nFinancial instruments - recognition and measurement. The
\ngroup currently has energy contracts in Norway that do not
\nmeet the own use criteria, since the power under the contracts
\nis delivered in another grid area to where the plants are located.
\nTransfer between di\ufb00erent grid areas is assessed to be net
\nsettlement and considered to be two di\ufb00erent transactions.
\nSuch contracts are therefore measured at fair value through
\npro\ufb01t or loss and classi\ufb01ed as derivatives, unless they are
\ndesignated as hedging instruments.
Principle
\nHedge accounting
\nElkem has applied IFRS 9 for hedge accounting. According
\nto Elkem's policy, derivatives can be designated as hedging
\ninstruments for fair value hedges and cash \ufb02ow hedges. At the
\ninception of the hedge relationship, the entity documents the
\nrelationship between the hedging instrument and the hedged
\nitem, along with its risk management objectives and its
\nstrategy for undertaking various hedge transactions.
\ni) Cash \ufb02ow hedges
\nThe e\ufb00ective portion of changes in the fair value of derivatives
\nthat are designated and qualify as cash \ufb02ow hedges, are
\nrecognised in other comprehensive income and accumulated
\nunder the heading of cash \ufb02ow hedging reserve. The gain
\nor loss relating to the ine\ufb00ective portion is recognised
\nimmediately in the statement of pro\ufb01t or loss and classi\ufb01ed as
\nother items. Realised e\ufb00ects are recognised through statement
\nof pro\ufb01t or loss, in the same line item as the hedged objects.
\nii) Net investment hedges
\nHedges of net investments in foreign operations are accounted
\nfor similarly to cash \ufb02ow hedges. Any gain or loss on the
\nhedging instrument relating to the e\ufb00ective portion of the
\nhedge is recognised in other comprehensive income and
\nincluded in foreign currency translation reserve in equity. The
\ngain or loss relating to the ine\ufb00ective portion is recognised
\nimmediately in the statement of pro\ufb01t or loss within other
\nitems. Gains and losses accumulated in equity are reclassi\ufb01ed
\nto the statement of pro\ufb01t or loss when the foreign operation is
\npartially disposed of or sold.
\nWhen a hedging instrument expires or is sold, or when a
\nhedge no longer meets the criteria for hedge accounting, any
\ncumulative gain or loss existing in comprehensive income at
\nthat time remains in equity and is recognised in the statement
\nof pro\ufb01t or loss when the forecast transaction is ultimately
\nrecognised in the statement of pro\ufb01t or loss. When a forecast
\ntransaction is no longer expected to occur, the cumulative gain
\nor loss reported in equity is immediately transferred to the
\nstatement of pro\ufb01t or loss.
Principle
\nThe calculation of basic earnings per share (EPS) has been
\nbased on pro\ufb01t attributable to ordinary shareholders and
\nweighted-average number of ordinary shares outstanding. The
\ncalculation of diluted EPS has been based pro\ufb01t attributable
\nto ordinary shareholders and weighted-average number of
\nordinary shares outstanding after adjustment for the e\ufb00ects of
\nall dilutive potential ordinary shares.
Related parties' relationships are de\ufb01ned to be entities outside
\nElkem group that are under control (either directly or indirectly),
\njoint control or signi\ufb01cant in\ufb02uence by the owners of Elkem.
Principle
\nEvents after the reporting period
\nEvents after the reporting period related to the group\u2019s \ufb01nancial
\nposition at the end of the reporting period, are considered in
\nthe \ufb01nancial statements. Events after the reporting period that
\nhave no e\ufb00ect on the group\u2019s \ufb01nancial position at the end of
\nthe reporting period, but will have e\ufb00ect on future \ufb01nancial
\nposition, are disclosed if the future e\ufb00ect is material.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSummaryOfSignificantAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11915": {
"value": "Compliance The consolidated \ufb01nancial statements are prepared and in
\naccordance with International Financial Reporting Standards
\n(IFRS) as endorsed by the European Union (EU) and e\ufb00ective
\nat 31 December 2022. All accounting policies are used
\nconsistently by all subsidiaries in the consolidated \ufb01nancial
\nstatement. Relevant \ufb01nancial reporting principles are described
\nin each note to the consolidated \ufb01nancial statements.",
"dimensions": {
"concept": "ifrs-full:StatementOfIFRSCompliance",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11921": {
"value": "2022-12-31",
"dimensions": {
"concept": "ifrs-full:DateOfEndOfReportingPeriod2013",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11940": {
"value": "The consolidated \ufb01nancial statements have been prepared based on the going concern assumption.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfUncertaintiesOfEntitysAbilityToContinueAsGoingConcern",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11941": {
"value": "The consolidated \ufb01nancial statements have been prepared based on the going concern assumption. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoingConcernExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11945": {
"value": "Foreign currency translation
\nEach entity in the group determines its functional currency
\nbased on the economic environment in which it operates,
\nand items included in the \ufb01nancial statements of each entity
\nare measured using that functional currency. When preparing
\nthe \ufb01nancial statements of each individual group entity,
\ntransactions in currencies other than the entity's functional
\ncurrency are recognised in the functional currency, using the
\ntransaction date\u2019s currency rate.
\nMonetary items denominated in foreign currencies are
\ntranslated to each entity's functional currency using the
\nclosing rate at the end of the reporting period, and any gains
\n(losses) are reported in the statement of pro\ufb01t or loss. Non-
\nmonetary items that are measured at fair value in a foreign
\ncurrency are translated using the exchange rate at the date
\nwhen the fair value was measured. Currency gains (losses)
\nrelated to operating activities, i.e. receivables, payables, bank
\naccounts for operating purposes including current intragroup
\nbalances, are recognised as a part of other items. Currency
\ne\ufb00ects recognised in \ufb01nance income and expenses are only
\nrelated to \ufb01nancing activities such as loans, lease liabilities,
\nlong-term placements and dividends.
\nForeign currency di\ufb00erences are recognised in other
\ncomprehensive income for the following items:
\n\u2192
a \ufb01nancial asset or liability designated as a hedging
\ninstrument in a cash \ufb02ow hedge, to the extent that the
\nhedge is e\ufb00ective
\n\u2192
loans in foreign currencies designated as hedging
\ninstruments in a hedge of a net investment in a
\nforeign operation
\nIn consolidation of the statement of pro\ufb01t or loss and the
\nstatement of \ufb01nancial position, separate group entities with
\nother functional currency than the group's presentation
\ncurrency, are translated directly into the presentation
\ncurrency as follows:
\n\u2192
Assets and liabilities are translated using the exchange
\nrate at the end of the reporting period
\n\u2192
Income and expenses are translated using an average
\nexchange rate per month
\n\u2192
Equity transactions, except for pro\ufb01t or loss for the
\nperiod, are translated using the transaction date rates
\nAll resulting exchange di\ufb00erences are booked as a separate
\ncomponent in other comprehensive income (OCI)
\nAny goodwill arising on acquisition of a foreign operation and
\nany fair value adjustment to the carrying amount of assets and
\nliabilities arising on the acquisition, are treated as assets and
\nliabilities of the foreign operations. On disposal of a foreign
\nentity, the deferred cumulative amount recognised in other
\ncomprehensive income relating to that particular foreign
\noperation, is recognised in the statement of pro\ufb01t or loss.
Other gains (losses)
\nOther gains (losses) consists of changes in fair value of \ufb01nancial
\ninstruments that are not designated as a part of a hedging
\nrelationship, any ine\ufb00ective part of hedging relationships,
\ne\ufb00ects from discontinuation of hedging and foreign exchange
\ngains (losses) related to operating activities such as trade
\nreceivables, trade payables, bank accounts / overdrafts. Foreign
\nexchange gains (losses) related to \ufb01nancing activities, mainly
\ninterest-bearing liabilities and group loans, are classi\ufb01ed as a
\npart of \ufb01nancial income and expenses.
Foreign exchange gains (losses) related to \ufb01nancing activities
\nincluding group loans are classi\ufb01ed as a part of \ufb01nancial
\nincome and expenses, and foreign exchange gains (losses)
\nrelated to operations are classi\ufb01ed as a part of other items.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f11948": {
"value": "Each entity in the group determines its functional currency based on the economic environment in which it operates,
\nand items included in the \ufb01nancial statements of each entity
\nare measured using that functional currency. When preparing
\nthe \ufb01nancial statements of each individual group entity,
\ntransactions in currencies other than the entity's functional
\ncurrency are recognised in the functional currency, using the
\ntransaction date\u2019s currency rate.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12005": {
"value": "Statement of cash \ufb02ows The statement of cash \ufb02ows is prepared under the indirect
\nmethod. Cash in\ufb02ows and out\ufb02ows are shown separately for
\ninvesting and \ufb01nancing activities, while operating activities
\ninclude both cash and non-cash e\ufb00ect items. Interest received
\nand paid and other \ufb01nancial expenses, such as bank guarantee
\nexpenses, are reported as a part of operating activities. Net
\ncurrency gains or losses related to \ufb01nancing activities are
\nreported as part of \ufb01nancing activities. Dividends received from
\njoint ventures and associates that do not operate within Elkem's
\nmain business areas are included in investing activities.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12019": {
"value": "Dividend to shareholders Dividend is recognised as a liability when the shareholders'
\nright to payment is established, which is when the dividend is
\napproved by the General Meeting.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12026": {
"value": "Changes in accounting policies and correction of material errors
\nChanges in accounting policies and correction of material errors
\nare recognised retrospectively by restating the comparative
\namounts for the prior period presented, including the opening
\nbalance of the prior year.
\nChanges in accounting policy
\nThe IFRS Interpretations Committee (IFRIC) published an
\nagenda decision in April 2021 \u201cCon\ufb01guration or Customisation
\nCosts in a Cloud Computing Arrangement (IAS 38 Intangible
\nAssets)\u201d, con\ufb01rming that a cloud computing customer should
\nexpense the costs of con\ufb01guring or customising a supplier\u2019s
\napplication software in a Software as a Service arrangement.
\nFrom 1.1.2022 Elkem has applied this policy for costs related
\nto the implementation of cloud computing. Following the
\naccounting policy change NOK 24 million was adjusted
\ntowards opening balance of equity in second quarter of 2022.
\nDue to materiality comparable \ufb01gures are not restated.
\nChange in presentation
\nPresentation of realised hedge ine\ufb00ectiveness is changed
\nfrom raw materials and energy for production to other items
\nin the statement of pro\ufb01t and loss. The change is done to
\npresent realised e\ufb00ects together with unrealised e\ufb00ects from
\nine\ufb00ectiveness. The impact from realised ine\ufb00ectiveness has
\nnot been material in previous years. Comparable \ufb01gures are
\nrestated. See note 34 Changes in accounting policies.
\nNew and revised standards - adopted
\nNew or revised accounting standards and interpretations
\nimplemented as of 1 January 2022 are among others Onerous
\nContracts \u2013 Costs of Ful\ufb01lling a Contract (Amendments to IAS
\n37) and Proceeds before Intended Use (Amendments to IAS 16
\nProperty, plant and equipment). The new or revised accounting
\nstandards and interpretations do not represent a signi\ufb01cant
\nimpact to Elkem's accounting policies.
\nNew standards, interpretations and amendments
-
\nnot yet e\ufb00ective
\nThe consolidated \ufb01nancial statements will be a\ufb00ected by
\nfuture changes in IFRS. No standards, interpretations or
\namendments published at the balance sheet date are
expected to have signi\ufb01cant e\ufb00ect on the group.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12027": {
"value": "Changes in accounting policies and correction of material errors
\nChanges in accounting policies and correction of material errors
\nare recognised retrospectively by restating the comparative
\namounts for the prior period presented, including the opening
\nbalance of the prior year.
\nChanges in accounting policy
\nThe IFRS Interpretations Committee (IFRIC) published an
\nagenda decision in April 2021 \u201cCon\ufb01guration or Customisation
\nCosts in a Cloud Computing Arrangement (IAS 38 Intangible
\nAssets)\u201d, con\ufb01rming that a cloud computing customer should
\nexpense the costs of con\ufb01guring or customising a supplier\u2019s
\napplication software in a Software as a Service arrangement.
\nFrom 1.1.2022 Elkem has applied this policy for costs related
\nto the implementation of cloud computing. Following the
\naccounting policy change NOK 24 million was adjusted
\ntowards opening balance of equity in second quarter of 2022.
\nDue to materiality comparable \ufb01gures are not restated.
\nChange in presentation
\nPresentation of realised hedge ine\ufb00ectiveness is changed
\nfrom raw materials and energy for production to other items
\nin the statement of pro\ufb01t and loss. The change is done to
\npresent realised e\ufb00ects together with unrealised e\ufb00ects from
\nine\ufb00ectiveness. The impact from realised ine\ufb00ectiveness has
\nnot been material in previous years. Comparable \ufb01gures are
\nrestated. See note 34 Changes in accounting policies. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12057": {
"value": "New and revised standards - adopted New or revised accounting standards and interpretations
\nimplemented as of 1 January 2022 are among others Onerous
\nContracts \u2013 Costs of Ful\ufb01lling a Contract (Amendments to IAS
\n37) and Proceeds before Intended Use (Amendments to IAS 16
\nProperty, plant and equipment). The new or revised accounting
\nstandards and interpretations do not represent a signi\ufb01cant
\nimpact to Elkem's accounting policies.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12068": {
"value": "New standards, interpretations and amendments -
\nnot yet e\ufb00ective
\nThe consolidated \ufb01nancial statements will be a\ufb00ected by
\nfuture changes in IFRS. No standards, interpretations or
\namendments published at the balance sheet date are
expected to have signi\ufb01cant e\ufb00ect on the group.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12088": {
"value": "3. Accounting estimates
\nThe preparation of the consolidated \ufb01nancial statements
\naccording to IFRS requires management to make judgments,
\nestimates and assumptions that a\ufb00ect the application of
\naccounting policies and the reported amounts of assets,
\nliabilities, income and expenses. When management makes
\nestimates and assumptions concerning the future, the
\nresulting accounting estimates will, by de\ufb01nition, seldom equal
\nthe actual outcome.
\nEstimates and judgements are continually evaluated and are
\nbased on historical experience and other factors, including
\nexpectations of future events that are believed to be
\nreasonable under the circumstances. Revisions of reported
\nestimates are recognised in the period in which the estimates
\nare revised and in any future period a\ufb00ected. Changes
\nin accounting estimates are recognised prospectively by
\nincluding them in the statement of pro\ufb01t or loss in the period
\nof the change and future periods, if the change a\ufb00ects both.
\nThe estimates and assumptions that have a signi\ufb01cant risk
\nof causing a material adjustment to the carrying amounts
\nof assets and liabilities within the next \ufb01nancial year are
\naddressed in the di\ufb00erent notes.
\nInformation about judgements, assumptions and estimation
\nuncertainties at 31 December 2022 that have the most
\nsigni\ufb01cant e\ufb00ects on the amounts recognised in the \ufb01nancial
\nstatements is included in the following notes:
\n\u2192
Note 14 Taxes
\n\u2192
Note 15 Property, plant and equipment
\n\u2192
Note 19 Impairment assessment
\n\u2192
Note 24 Provisions and other liabilities
\n\u2192
Note 25 Financial assets and liabilities
Judgements and estimates
\nBusiness combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Judgements and estimates
\nEstimation uncertainty is mainly related to de\ufb01ned bene\ufb01t
\npension plans, where the calculation of pension obligations is
\nbased on \ufb01nancial and actuarial assumptions, such as discount
\nrates, future salary and pension adjustments, expected turnover
\nand mortality. Deviations between applied assumptions
\nand actual results in future periods will have e\ufb00ects on the
\ncalculated obligation. See information about sensitivity on
\npension obligations based on changes in main actuarial
\nassumptions below.
Judgements and estimates
\nEstimating fair value for share based payment transactions
\nrequires determination of the most appropriate valuation
\nmodel and assumptions to the valuation model. The fair value
\nat the grant date is determined using the Black-Scholes option
\npricing model, which takes into account the exercise price, the
\nlife of the option, the current price of the underlying shares, the
\nexpected volatility of the share price, any dividends expected
\non the shares and risk-free interest rate for the life of the
\noption. The expected share price volatility is based on historical
\nvolatility for a selection of comparable listed companies
\nadjusted with a premium taking into account the maturity of
\nthe peers compared to the Elkem. The risk-free interest rate is
\nbased on Norwegian government bonds with same maturity as
\nthe option.
Judgements and estimates
\nPart of the basis for recognising deferred tax assets is based on
\napplying the loss carried forward against future taxable income
\nin the group, which requires use of estimates for calculating
\nfuture taxable income. Deferred tax assets are not recognised
\nfor start-up projects and entities with longer periods of losses
\nunless there is convincing evidence of recoverability. Elkem
\nrecognises a previously unrecognised deferred tax asset to the
\nextent that it has become probable that future taxable pro\ufb01t will
\nallow the deferred asset to be recovered. For example, when
\nstart up projects becomes pro\ufb01table or the market condition
\nhas changed so the entity has longer periods with historic
\ntaxable pro\ufb01ts and future forecasted taxable pro\ufb01ts. When
\nestimating uncertain tax positions the most probable amount,
\nincluding interests and penalties, is used because in most cases
\nthe outcome of the tax review is binary.
Judgements and estimates
\nEstimated useful lives, residual values (if any) included
\nin calculation of depreciation of PPE are reviewed and, if
\nnecessary, adjusted at least annually.
Judgements and estimates
\nThe lease term is determined as the non-cancellable period
\nof a lease, together with any periods covered by an option
\nto extend the lease if Elkem is reasonably certain to exercise
\nthat option and any periods covered by an option to terminate
\nthe lease if the lessee is reasonably certain not to exercise
\nthat option. Elkem's main renewal options relate to lease
\nof buildings for o\ufb03ce and production purpose, included in
\nPlant, buildings and other property, and lease of land and it is
\nreasonably certain that the renewal option will be used. Elkem
\nreassesses the lease term if there is a signi\ufb01cant event or
\nchange in circumstances that is within its control and a\ufb00ects
\nits ability to exercise, or not to exercise, the option to renew.
Judgements and estimates
\nEstimated useful lives are used in calculation of amortisation
\nof intangible assets, these are reviewed, and if necessary
\nadjusted, at least annually.
Judgements and estimates
\nThe fair value of an acquired entity's net identi\ufb01able
\nassets used to initially measure goodwill are dependent on
\nassumptions such as future cash \ufb02ows and discount rate. See
\nnote 4 Composition of the group.
\nJudgments and estimates for impairment of assets, see Note
\n19 Impairment assessment.
Judgements and estimates
\nThere is signi\ufb01cant judgment required to determine the CGU for
\nimpairment testing. For goodwill the determination of the CGU
\nis based on the level where synergies are expected to be realised
\nfollowing a business combination. The CGU for impairment
\ntesting of goodwill is determined to be the operating segments
\nas presented in note 6 Operating segments.
\nFor impairment testing of \ufb01xed, intangible and right of use
\nassets the CGU the lowest level that generates ingoing cash
\n\ufb02ows. This can be both a single plant or a combination of
\nplants depending on the facts and circumstances.
\nThe recoverable amounts of assets of CGUs subject to
\nimpairment testing are determined based on value-in-use
\ncalculations, which are based on estimated future cash \ufb02ows.
\nThe uncertainty in the cash \ufb02ows relates to future prices for
\nboth key input factors in the production and market prices for
\nthe sale of Elkem's products. There is uncertainty regarding
\nthese factors both for the next 12 months and for the rest
\nof the forecast period. The estimated future cash \ufb02ows are
\ndiscounted using a discount rate before tax. The estimation
\nuncertainty in the discount rate relates to the determination
\nof the risk free rate and the beta. Elkem have performed
\nsensitivity analysis in the impairment test to re\ufb02ect the
\nuncertainty in the estimates.
Judgements and estimates
\nThe assessment of net realisable value for the inventory is
\nbased on estimated market prices in the period the inventory is
\nexpected to be sold. The actual market price will di\ufb00er from the
\nestimates used.
Judgements and estimates
\nJudgement is applied when determining expected credit loss
\non trade receivables. The judgement is based on experienced
\nlosses in the past and expectations about future economic
\nconditions for the di\ufb00erent customer groups / business areas.
\nCalculation of expected credit losses takes into account cash
\n\ufb02ows from credit insurance contracts when such contracts
\nare deemed to be an integral part of the transaction. Elkem
\ngenerally secures its trade receivables by credit insurance
\nfrom a reputable credit insurance company, see note 27
\nFinancial risk.
Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
Judgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12126": {
"value": "4. Composition of the group Judgements and estimates Business combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Elkem ASA and the following subsidiaries and joint
\noperations make up the composition of the group and are
\nincluded in the consolidated \ufb01nancial statement
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterests
\n31.12.2021
\nEquity
\ninterests
Owner
\nElkania DA (Joint operation)
NOK
Norway
50 %
50 %
Elkem ASA
\nElkem (Thailand) Co., Ltd.
THB
Thailand
100 %
100 %
Elkem ASA
\nElkem Carbon (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem Carbon
\nSingapore Pte. Ltd.
\nElkem Carbon AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Carbon Malaysia Sdn. Bhd.
MYR
Malaysia
100 %
100 %
Elkem Carbon AS
\nElkem Carbon Singapore Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem Carbon AS
\nElkem Chartering Holding AS
NOK
Norway
80 %
80 %
Elkem ASA
\nElkem Digital O\ufb03ce AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Distribution Center B.V.
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Dron\ufb01eld Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Egypt for Industry,
USD
Egypt
100 %
100 %
Elkem International AS
\nContracting & Trading S.A.E.
\nElkem Ferroveld JV (Joint operation)
ZAR
South Africa
50 %
50 %
Elkem Carbon AS
\nElkem Foundry (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Iberia S.L.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem International AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem International Trade (Shanghai) Co., Ltd.
CNY
China
100 %
100 %
Elkem International AS
\nElkem \u00cdsland ehf.
NOK
Iceland
100 %
100 %
Elkem ASA
\nElkem Japan K.K.
JPY
Japan
100 %
100 %
Elkem ASA
\nElkem Korea Co., Ltd.
KRW
Republic
100 %
100 %
Elkem ASA
\nof Korea
\nElkem Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Madencilik Metalurji Sanayi
EUR
Turkey
100 %
100 %
Elkem International AS
\nVe Ticaret Ltd. STI
\nElkem Materials, Inc.
USD
USA
100 %
100 %
NEH LLC
\nElkem Materials Delaware, Inc.
USD
USA
100 %
100 %
Elkem Materials, Inc.
\nElkem Materials Processing (Tianjin) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Materials Processing Services BV
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Materials South America Ltda.
BRL
Brazil
100 %
100 %
Elkem Materials, Inc.
\nElkem Metal Canada Inc.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Milling Services GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Nordic A.S.
DKK
Denmark
100 %
100 %
Elkem ASA
\nElkem Oil\ufb01eld Chemicals FZCO Ltd.
AED
UAE
51 %
51 %
Elkem ASA
\nElkem Paraguay S.A.
USD
Paraguay
100 %
100 %
\n3)
\nElkem ASA
\nElkem Participa\u00e7\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
BRL
Brazil
100 %
100 %
Elkem Carbon AS
\nElkem Processing Services S.A.
\n1)
\nEUR
Belgium
100 %
-
Elkem ASA
\nElkem S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterest
\n31.12.2021
\nEquity
\ninterest
\nOwner
\nElkem Silicon Materials (Lanzhou) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicon Product Development AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Siliconas Espa\u00f1a S.A.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem Silicones (UK) Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Silicones Brasil Ltda.
BRL
Brazil
100 %
100 %
Elkem ASA
\nElkem Silicones Canada Corp.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Silicones Czech Republic, s.r.o.
CZK
Czech Republic
100 %
100 %
Elkem ASA
\nElkem Silicones Finland OY
EUR
Finland
100 %
100 %
Elkem ASA
\nElkem Silicones France SAS
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Germany GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Silicones Guangdong Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones Hong Kong Co., Ltd.
HKD
Hong Kong
100 %
100 %
Elkem ASA
\nElkem Silicones Korea Co., Ltd.
KRW
Republic
\nof Korea
\n100 %
100 %
Elkem ASA
\nElkem Silicones Material Zhongshan Co., Ltd.
CNY
China
100 %
100 %
Elkem Silicones
\nGuangdong Co., Ltd.
\nElkem Silicones M\u00e9xico S. De R.L. De C.V.
MXN
Mexico
100 %
100 %
Elkem ASA
\nElkem Silicones Poland sp. z o.o.
PLN
Poland
100 %
100 %
Elkem ASA
\nElkem Silicones Scandinavia AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Silicones Services S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Shanghai Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones USA Corp.
USD
USA
100 %
100 %
Elkem ASA
\nElkem Siliconi Italia S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nElkem Singapore Materials Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem ASA
\nElkem South Asia Private Limited
INR
India
100 %
100 %
Elkem ASA
\nElkem UK Holdings Ltd.
GBP
United Kingdom
100 %
100 %
Elkem ASA
\nElkem Uruguay S.A.
USD
Uruguay
100 %
100 %
Elkem ASA
\nEuro Nordic Logistics BV
EUR
Netherlands
80 %
80 %
Elkem Chartering
\nHolding AS
\nEuro Nordic Netherlands BV
EUR
Netherlands
80 %
80 %
Euro Nordic Logistics BV
\nExplotaci\u00f3n de Rocas Industriales y
EUR
Spain
100 %
100 %
Elkem ASA
\nMinerales S.A. (ERIMSA)
\nIniconce, S.L.
EUR
Spain
100 %
100 %
Explotaci\u00f3n de Rocas
\nIndustriales y Minerales S.A.
\nJiangxi Bluestar Xinghuo Silicones Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nNEH LLC
USD
USA
100 %
100 %
Elkem ASA
\nNorenoComercial Importada e
BRL
Brazil
100 %
100 %
Elkem Participa\u00e7\u00f2es
\nExportadora Limitada
Ind\u00fastria e Com\u00e9rcio
\nLimitada
\nNorsil, S.A.
EUR
Spain
100 %
100 %
Iniconce, S.L
\nTifwer Trade S.A.
USD
Uruguay
100 %
100 %
Elkem Uruguay S.A.
\nVianode AS
\n2)
\nNOK
Norway
-
100 %
Elkem ASA
\n1)
\nPreviously KeyVest Belgium S.A.
\n2)
\nSee Loss of control.
\n3)
\nElkem ASA owns 79% and Elkem Uruguay S.A owns 21%
Changes in composition of the group in 2022,
\nbusiness combinations
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by acquisition
\nfrom Kvitebj\u00f8rn Energi AS. Salten Energigjenvinning AS
\noperates the Elkem Salten energy recovery plant. The
\ninvestment in the energy recovery plant further strengthens
\nElkem's e\ufb00orts to ensure environmentally friendly silicon and
\nferrosilicon production with the lowest possible emissions and
\nlowest possible use of resources. Salten Energigjenvinning AS
\nwas merged with Elkem ASA in 2022 and is presented within
\nthe Silicon products operating segment.
\nThe energy recovery plant has been built in partnership between
\nElkem and Kvitebj\u00f8rn Energi. The total investment in the energy
\nrecovery plant has amounted to around NOK 1,180 million,
\n\ufb01nanced through a NOK 350 million grant from Enova, external
\ndebt and some equity. The book value of Elkem's 50% equity
\naccounted joint venture was NOK 47 million at 31 January 2022.
\nThe di\ufb00erence between the fair value and the book value of the
\n50% share results in a fair value gain of NOK 75 million. This
\ngain is partially o\ufb00set by a loss on pre-existing relationships of
\nNOK 58 million related to delivery of heat from Elkem ASA to
\nSalten Energigjenvinning AS and a loss of NOK 13 million related
\nto the cash \ufb02ow hedge reserve from an interest rate hedge in
\nSEAS which has been reclassi\ufb01ed from other comprehensive
\nincome to other items in pro\ufb01t and loss as a result of the
\ntransaction (see note 12 Other items). If the company had been
\npart of the group from 1 January 2022 revenue would have
\nincreased with NOK 1 million and pro\ufb01t after tax would have
\ndecreased with NOK 6 million.
\n20 June 2022 Elkem acquired Elkem Processing Services
\nS.A (formerly KeyVest Belgium S.A), a specialist company in
\nthe sourcing of materials and production of metal powders
\nto the refractory industry and other segments including
\nadvanced ceramics. With the acquisition of Elkem Processing
\nServices S.A Elkem will enable further growth by providing
\nadditional specialised products to our current customers,
\nimprove service level and processing capabilities and grow
\nin adjacent segments. The acquisition will expand Elkem's
\nproduct portfolio and create a platform for further growth.
\nThe production facility and related inventory amounts to
\naround NOK 30 million. After the acquisition date revenues
\nof NOK 37 million and pro\ufb01t after tax of NOK 1 million from
\nthe company has been included in consolidated statement of
\ncomprehensive income. If the company had been part of the
\ngroup from 1 January 2022 revenue and pro\ufb01t after tax would
\nhave increased with NOK 96 million and NOK 16 million
\nrespectively, including a NOK 5 million gain from bargain
\npurchase. Elkem Processing Services S.A is presented within
\nthe Silicon Products operating segment.
\nNet cash out\ufb02ow
2022
\nCash transferred on acquisition
(156)
\nCash and cash equivalents of the acquiree
48
\nAcquisition of subsidiaries, net of cash acquired
(108)
\nThe table below summarise the total consideration and the
\nprovisional amounts recognised for assets acquired and
\nliabilities assumed after the business combination:
\nConsideration
2022
\nCash transferred on acquisition
156
\nFair value of 50% pre-transaction ownership in SEAS
122
\nTotal consideration
278
\nAssets acquired and liabilities assumed
\nAmounts in NOK million
Carrying amount
Excess value
Fair value
\nProperty, plant and equipment
\nOther intangible assets
\nDeferred tax assets
\nInventories
\nTrade receivables
\nOther assets, current
\nCash and cash equivalents
\nDeferred tax liabilities
\nInterest-bearing liabilities, non-current
\nDerivatives, non-current
\nTrade payables
\nIncome tax payables
\nInterest-bearing liabilities, current
\nProvisions and other liabilities, current
\nTotal identi\ufb01able net assets
\n823
\n0
\n7
\n29
\n10
\n13
\n48
\n-
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n128
\n119
\n6
\n-
\n-
\n-
\n-
\n-
\n(28)
\n-
\n-
\n-
\n-
\n-
\n-
\n97
\n942
\n6
\n7
\n29
\n10
\n13
\n48
\n(28)
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n225
\nLoss on pre-existing relationship
\nGain on bargain purchase
\n1)
\nTotal recognised
\n-
\n-
\n128
\n-
\n-
\n97
\n58
\n(5)
\n278
\n1)
\nAfter the transaction process started, KeyVest delivered better than expected results. This was not fully re\ufb02ected in the \ufb01nal purchase
\nprice, resulting in a bargain purchase.
\nAcquisition-related costs of NOK 2 million is recognised in
\nother items in the statement of pro\ufb01t or loss in 2022.
\nLoss of control
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 150 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the fair
\nvalue measurement of Elkem's retained investment in Vianode.
\nFollowing the transaction Elkem will classify the remaining
\ninvestment as a joint venture and measure the investment
\nusing the equity method of accounting.
\nThe value of the investment on initial recognition was NOK 576
\nmillion including the \ufb01rst tranche of capital injection on loss
\nof control, NOK 134 million. Vianode had a negative overdraft
\nposition at the transaction date resulted in a positive cash
\ne\ufb00ect for the group on disposal of NOK 151 million.
\nNet cash in\ufb02ow
2022
\nCash received on disposal
-
\nCash and cash equivalents of the subsidiaries
151
\nDisposal of subsidiaries, net of cash
151
\nChanges in composition of the group in 2021,
\nbusiness combination
\nNo business combinations took place in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCompositionOfGroupExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12127": {
"value": "4. Composition of the group Judgements and estimates
\nBusiness combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Elkem ASA and the following subsidiaries and joint
\noperations make up the composition of the group and are
\nincluded in the consolidated \ufb01nancial statement
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterests
\n31.12.2021
\nEquity
\ninterests
Owner
\nElkania DA (Joint operation)
NOK
Norway
50 %
50 %
Elkem ASA
\nElkem (Thailand) Co., Ltd.
THB
Thailand
100 %
100 %
Elkem ASA
\nElkem Carbon (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem Carbon
\nSingapore Pte. Ltd.
\nElkem Carbon AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Carbon Malaysia Sdn. Bhd.
MYR
Malaysia
100 %
100 %
Elkem Carbon AS
\nElkem Carbon Singapore Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem Carbon AS
\nElkem Chartering Holding AS
NOK
Norway
80 %
80 %
Elkem ASA
\nElkem Digital O\ufb03ce AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Distribution Center B.V.
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Dron\ufb01eld Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Egypt for Industry,
USD
Egypt
100 %
100 %
Elkem International AS
\nContracting & Trading S.A.E.
\nElkem Ferroveld JV (Joint operation)
ZAR
South Africa
50 %
50 %
Elkem Carbon AS
\nElkem Foundry (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Iberia S.L.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem International AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem International Trade (Shanghai) Co., Ltd.
CNY
China
100 %
100 %
Elkem International AS
\nElkem \u00cdsland ehf.
NOK
Iceland
100 %
100 %
Elkem ASA
\nElkem Japan K.K.
JPY
Japan
100 %
100 %
Elkem ASA
\nElkem Korea Co., Ltd.
KRW
Republic
100 %
100 %
Elkem ASA
\nof Korea
\nElkem Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Madencilik Metalurji Sanayi
EUR
Turkey
100 %
100 %
Elkem International AS
\nVe Ticaret Ltd. STI
\nElkem Materials, Inc.
USD
USA
100 %
100 %
NEH LLC
\nElkem Materials Delaware, Inc.
USD
USA
100 %
100 %
Elkem Materials, Inc.
\nElkem Materials Processing (Tianjin) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Materials Processing Services BV
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Materials South America Ltda.
BRL
Brazil
100 %
100 %
Elkem Materials, Inc.
\nElkem Metal Canada Inc.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Milling Services GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Nordic A.S.
DKK
Denmark
100 %
100 %
Elkem ASA
\nElkem Oil\ufb01eld Chemicals FZCO Ltd.
AED
UAE
51 %
51 %
Elkem ASA
\nElkem Paraguay S.A.
USD
Paraguay
100 %
100 %
\n3)
\nElkem ASA
\nElkem Participa\u00e7\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
BRL
Brazil
100 %
100 %
Elkem Carbon AS
\nElkem Processing Services S.A.
\n1)
\nEUR
Belgium
100 %
-
Elkem ASA
\nElkem S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterest
\n31.12.2021
\nEquity
\ninterest
\nOwner
\nElkem Silicon Materials (Lanzhou) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicon Product Development AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Siliconas Espa\u00f1a S.A.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem Silicones (UK) Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Silicones Brasil Ltda.
BRL
Brazil
100 %
100 %
Elkem ASA
\nElkem Silicones Canada Corp.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Silicones Czech Republic, s.r.o.
CZK
Czech Republic
100 %
100 %
Elkem ASA
\nElkem Silicones Finland OY
EUR
Finland
100 %
100 %
Elkem ASA
\nElkem Silicones France SAS
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Germany GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Silicones Guangdong Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones Hong Kong Co., Ltd.
HKD
Hong Kong
100 %
100 %
Elkem ASA
\nElkem Silicones Korea Co., Ltd.
KRW
Republic
\nof Korea
\n100 %
100 %
Elkem ASA
\nElkem Silicones Material Zhongshan Co., Ltd.
CNY
China
100 %
100 %
Elkem Silicones
\nGuangdong Co., Ltd.
\nElkem Silicones M\u00e9xico S. De R.L. De C.V.
MXN
Mexico
100 %
100 %
Elkem ASA
\nElkem Silicones Poland sp. z o.o.
PLN
Poland
100 %
100 %
Elkem ASA
\nElkem Silicones Scandinavia AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Silicones Services S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Shanghai Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones USA Corp.
USD
USA
100 %
100 %
Elkem ASA
\nElkem Siliconi Italia S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nElkem Singapore Materials Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem ASA
\nElkem South Asia Private Limited
INR
India
100 %
100 %
Elkem ASA
\nElkem UK Holdings Ltd.
GBP
United Kingdom
100 %
100 %
Elkem ASA
\nElkem Uruguay S.A.
USD
Uruguay
100 %
100 %
Elkem ASA
\nEuro Nordic Logistics BV
EUR
Netherlands
80 %
80 %
Elkem Chartering
\nHolding AS
\nEuro Nordic Netherlands BV
EUR
Netherlands
80 %
80 %
Euro Nordic Logistics BV
\nExplotaci\u00f3n de Rocas Industriales y
EUR
Spain
100 %
100 %
Elkem ASA
\nMinerales S.A. (ERIMSA)
\nIniconce, S.L.
EUR
Spain
100 %
100 %
Explotaci\u00f3n de Rocas
\nIndustriales y Minerales S.A.
\nJiangxi Bluestar Xinghuo Silicones Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nNEH LLC
USD
USA
100 %
100 %
Elkem ASA
\nNorenoComercial Importada e
BRL
Brazil
100 %
100 %
Elkem Participa\u00e7\u00f2es
\nExportadora Limitada
Ind\u00fastria e Com\u00e9rcio
\nLimitada
\nNorsil, S.A.
EUR
Spain
100 %
100 %
Iniconce, S.L
\nTifwer Trade S.A.
USD
Uruguay
100 %
100 %
Elkem Uruguay S.A.
\nVianode AS
\n2)
\nNOK
Norway
-
100 %
Elkem ASA
\n1)
\nPreviously KeyVest Belgium S.A.
\n2)
\nSee Loss of control.
\n3)
\nElkem ASA owns 79% and Elkem Uruguay S.A owns 21%
Changes in composition of the group in 2022,
\nbusiness combinations
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by acquisition
\nfrom Kvitebj\u00f8rn Energi AS. Salten Energigjenvinning AS
\noperates the Elkem Salten energy recovery plant. The
\ninvestment in the energy recovery plant further strengthens
\nElkem's e\ufb00orts to ensure environmentally friendly silicon and
\nferrosilicon production with the lowest possible emissions and
\nlowest possible use of resources. Salten Energigjenvinning AS
\nwas merged with Elkem ASA in 2022 and is presented within
\nthe Silicon products operating segment.
\nThe energy recovery plant has been built in partnership between
\nElkem and Kvitebj\u00f8rn Energi. The total investment in the energy
\nrecovery plant has amounted to around NOK 1,180 million,
\n\ufb01nanced through a NOK 350 million grant from Enova, external
\ndebt and some equity. The book value of Elkem's 50% equity
\naccounted joint venture was NOK 47 million at 31 January 2022.
\nThe di\ufb00erence between the fair value and the book value of the
\n50% share results in a fair value gain of NOK 75 million. This
\ngain is partially o\ufb00set by a loss on pre-existing relationships of
\nNOK 58 million related to delivery of heat from Elkem ASA to
\nSalten Energigjenvinning AS and a loss of NOK 13 million related
\nto the cash \ufb02ow hedge reserve from an interest rate hedge in
\nSEAS which has been reclassi\ufb01ed from other comprehensive
\nincome to other items in pro\ufb01t and loss as a result of the
\ntransaction (see note 12 Other items). If the company had been
\npart of the group from 1 January 2022 revenue would have
\nincreased with NOK 1 million and pro\ufb01t after tax would have
\ndecreased with NOK 6 million.
\n20 June 2022 Elkem acquired Elkem Processing Services
\nS.A (formerly KeyVest Belgium S.A), a specialist company in
\nthe sourcing of materials and production of metal powders
\nto the refractory industry and other segments including
\nadvanced ceramics. With the acquisition of Elkem Processing
\nServices S.A Elkem will enable further growth by providing
\nadditional specialised products to our current customers,
\nimprove service level and processing capabilities and grow
\nin adjacent segments. The acquisition will expand Elkem's
\nproduct portfolio and create a platform for further growth.
\nThe production facility and related inventory amounts to
\naround NOK 30 million. After the acquisition date revenues
\nof NOK 37 million and pro\ufb01t after tax of NOK 1 million from
\nthe company has been included in consolidated statement of
\ncomprehensive income. If the company had been part of the
\ngroup from 1 January 2022 revenue and pro\ufb01t after tax would
\nhave increased with NOK 96 million and NOK 16 million
\nrespectively, including a NOK 5 million gain from bargain
\npurchase. Elkem Processing Services S.A is presented within
\nthe Silicon Products operating segment.
\nNet cash out\ufb02ow
2022
\nCash transferred on acquisition
(156)
\nCash and cash equivalents of the acquiree
48
\nAcquisition of subsidiaries, net of cash acquired
(108)
\nThe table below summarise the total consideration and the
\nprovisional amounts recognised for assets acquired and
\nliabilities assumed after the business combination:
\nConsideration
2022
\nCash transferred on acquisition
156
\nFair value of 50% pre-transaction ownership in SEAS
122
\nTotal consideration
278
\nAssets acquired and liabilities assumed
\nAmounts in NOK million
Carrying amount
Excess value
Fair value
\nProperty, plant and equipment
\nOther intangible assets
\nDeferred tax assets
\nInventories
\nTrade receivables
\nOther assets, current
\nCash and cash equivalents
\nDeferred tax liabilities
\nInterest-bearing liabilities, non-current
\nDerivatives, non-current
\nTrade payables
\nIncome tax payables
\nInterest-bearing liabilities, current
\nProvisions and other liabilities, current
\nTotal identi\ufb01able net assets
\n823
\n0
\n7
\n29
\n10
\n13
\n48
\n-
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n128
\n119
\n6
\n-
\n-
\n-
\n-
\n-
\n(28)
\n-
\n-
\n-
\n-
\n-
\n-
\n97
\n942
\n6
\n7
\n29
\n10
\n13
\n48
\n(28)
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n225
\nLoss on pre-existing relationship
\nGain on bargain purchase
\n1)
\nTotal recognised
\n-
\n-
\n128
\n-
\n-
\n97
\n58
\n(5)
\n278
\n1)
\nAfter the transaction process started, KeyVest delivered better than expected results. This was not fully re\ufb02ected in the \ufb01nal purchase
\nprice, resulting in a bargain purchase.
\nAcquisition-related costs of NOK 2 million is recognised in
\nother items in the statement of pro\ufb01t or loss in 2022.
\nLoss of control
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 150 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the fair
\nvalue measurement of Elkem's retained investment in Vianode.
\nFollowing the transaction Elkem will classify the remaining
\ninvestment as a joint venture and measure the investment
\nusing the equity method of accounting.
\nThe value of the investment on initial recognition was NOK 576
\nmillion including the \ufb01rst tranche of capital injection on loss
\nof control, NOK 134 million. Vianode had a negative overdraft
\nposition at the transaction date resulted in a positive cash
\ne\ufb00ect for the group on disposal of NOK 151 million.
\nNet cash in\ufb02ow
2022
\nCash received on disposal
-
\nCash and cash equivalents of the subsidiaries
151
\nDisposal of subsidiaries, net of cash
151
\nChanges in composition of the group in 2021,
\nbusiness combination
\nNo business combinations took place in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12128": {
"value": "4. Composition of the groupJudgements and estimates
\nBusiness combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Elkem ASA and the following subsidiaries and joint
\noperations make up the composition of the group and are
\nincluded in the consolidated \ufb01nancial statement
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterests
\n31.12.2021
\nEquity
\ninterests
Owner
\nElkania DA (Joint operation)
NOK
Norway
50 %
50 %
Elkem ASA
\nElkem (Thailand) Co., Ltd.
THB
Thailand
100 %
100 %
Elkem ASA
\nElkem Carbon (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem Carbon
\nSingapore Pte. Ltd.
\nElkem Carbon AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Carbon Malaysia Sdn. Bhd.
MYR
Malaysia
100 %
100 %
Elkem Carbon AS
\nElkem Carbon Singapore Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem Carbon AS
\nElkem Chartering Holding AS
NOK
Norway
80 %
80 %
Elkem ASA
\nElkem Digital O\ufb03ce AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Distribution Center B.V.
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Dron\ufb01eld Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Egypt for Industry,
USD
Egypt
100 %
100 %
Elkem International AS
\nContracting & Trading S.A.E.
\nElkem Ferroveld JV (Joint operation)
ZAR
South Africa
50 %
50 %
Elkem Carbon AS
\nElkem Foundry (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Iberia S.L.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem International AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem International Trade (Shanghai) Co., Ltd.
CNY
China
100 %
100 %
Elkem International AS
\nElkem \u00cdsland ehf.
NOK
Iceland
100 %
100 %
Elkem ASA
\nElkem Japan K.K.
JPY
Japan
100 %
100 %
Elkem ASA
\nElkem Korea Co., Ltd.
KRW
Republic
100 %
100 %
Elkem ASA
\nof Korea
\nElkem Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Madencilik Metalurji Sanayi
EUR
Turkey
100 %
100 %
Elkem International AS
\nVe Ticaret Ltd. STI
\nElkem Materials, Inc.
USD
USA
100 %
100 %
NEH LLC
\nElkem Materials Delaware, Inc.
USD
USA
100 %
100 %
Elkem Materials, Inc.
\nElkem Materials Processing (Tianjin) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Materials Processing Services BV
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Materials South America Ltda.
BRL
Brazil
100 %
100 %
Elkem Materials, Inc.
\nElkem Metal Canada Inc.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Milling Services GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Nordic A.S.
DKK
Denmark
100 %
100 %
Elkem ASA
\nElkem Oil\ufb01eld Chemicals FZCO Ltd.
AED
UAE
51 %
51 %
Elkem ASA
\nElkem Paraguay S.A.
USD
Paraguay
100 %
100 %
\n3)
\nElkem ASA
\nElkem Participa\u00e7\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
BRL
Brazil
100 %
100 %
Elkem Carbon AS
\nElkem Processing Services S.A.
\n1)
\nEUR
Belgium
100 %
-
Elkem ASA
\nElkem S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterest
\n31.12.2021
\nEquity
\ninterest
\nOwner
\nElkem Silicon Materials (Lanzhou) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicon Product Development AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Siliconas Espa\u00f1a S.A.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem Silicones (UK) Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Silicones Brasil Ltda.
BRL
Brazil
100 %
100 %
Elkem ASA
\nElkem Silicones Canada Corp.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Silicones Czech Republic, s.r.o.
CZK
Czech Republic
100 %
100 %
Elkem ASA
\nElkem Silicones Finland OY
EUR
Finland
100 %
100 %
Elkem ASA
\nElkem Silicones France SAS
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Germany GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Silicones Guangdong Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones Hong Kong Co., Ltd.
HKD
Hong Kong
100 %
100 %
Elkem ASA
\nElkem Silicones Korea Co., Ltd.
KRW
Republic
\nof Korea
\n100 %
100 %
Elkem ASA
\nElkem Silicones Material Zhongshan Co., Ltd.
CNY
China
100 %
100 %
Elkem Silicones
\nGuangdong Co., Ltd.
\nElkem Silicones M\u00e9xico S. De R.L. De C.V.
MXN
Mexico
100 %
100 %
Elkem ASA
\nElkem Silicones Poland sp. z o.o.
PLN
Poland
100 %
100 %
Elkem ASA
\nElkem Silicones Scandinavia AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Silicones Services S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Shanghai Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones USA Corp.
USD
USA
100 %
100 %
Elkem ASA
\nElkem Siliconi Italia S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nElkem Singapore Materials Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem ASA
\nElkem South Asia Private Limited
INR
India
100 %
100 %
Elkem ASA
\nElkem UK Holdings Ltd.
GBP
United Kingdom
100 %
100 %
Elkem ASA
\nElkem Uruguay S.A.
USD
Uruguay
100 %
100 %
Elkem ASA
\nEuro Nordic Logistics BV
EUR
Netherlands
80 %
80 %
Elkem Chartering
\nHolding AS
\nEuro Nordic Netherlands BV
EUR
Netherlands
80 %
80 %
Euro Nordic Logistics BV
\nExplotaci\u00f3n de Rocas Industriales y
EUR
Spain
100 %
100 %
Elkem ASA
\nMinerales S.A. (ERIMSA)
\nIniconce, S.L.
EUR
Spain
100 %
100 %
Explotaci\u00f3n de Rocas
\nIndustriales y Minerales S.A.
\nJiangxi Bluestar Xinghuo Silicones Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nNEH LLC
USD
USA
100 %
100 %
Elkem ASA
\nNorenoComercial Importada e
BRL
Brazil
100 %
100 %
Elkem Participa\u00e7\u00f2es
\nExportadora Limitada
Ind\u00fastria e Com\u00e9rcio
\nLimitada
\nNorsil, S.A.
EUR
Spain
100 %
100 %
Iniconce, S.L
\nTifwer Trade S.A.
USD
Uruguay
100 %
100 %
Elkem Uruguay S.A.
\nVianode AS
\n2)
\nNOK
Norway
-
100 %
Elkem ASA
\n1)
\nPreviously KeyVest Belgium S.A.
\n2)
\nSee Loss of control.
\n3)
\nElkem ASA owns 79% and Elkem Uruguay S.A owns 21%
Changes in composition of the group in 2022,
\nbusiness combinations
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by acquisition
\nfrom Kvitebj\u00f8rn Energi AS. Salten Energigjenvinning AS
\noperates the Elkem Salten energy recovery plant. The
\ninvestment in the energy recovery plant further strengthens
\nElkem's e\ufb00orts to ensure environmentally friendly silicon and
\nferrosilicon production with the lowest possible emissions and
\nlowest possible use of resources. Salten Energigjenvinning AS
\nwas merged with Elkem ASA in 2022 and is presented within
\nthe Silicon products operating segment.
\nThe energy recovery plant has been built in partnership between
\nElkem and Kvitebj\u00f8rn Energi. The total investment in the energy
\nrecovery plant has amounted to around NOK 1,180 million,
\n\ufb01nanced through a NOK 350 million grant from Enova, external
\ndebt and some equity. The book value of Elkem's 50% equity
\naccounted joint venture was NOK 47 million at 31 January 2022.
\nThe di\ufb00erence between the fair value and the book value of the
\n50% share results in a fair value gain of NOK 75 million. This
\ngain is partially o\ufb00set by a loss on pre-existing relationships of
\nNOK 58 million related to delivery of heat from Elkem ASA to
\nSalten Energigjenvinning AS and a loss of NOK 13 million related
\nto the cash \ufb02ow hedge reserve from an interest rate hedge in
\nSEAS which has been reclassi\ufb01ed from other comprehensive
\nincome to other items in pro\ufb01t and loss as a result of the
\ntransaction (see note 12 Other items). If the company had been
\npart of the group from 1 January 2022 revenue would have
\nincreased with NOK 1 million and pro\ufb01t after tax would have
\ndecreased with NOK 6 million.
\n20 June 2022 Elkem acquired Elkem Processing Services
\nS.A (formerly KeyVest Belgium S.A), a specialist company in
\nthe sourcing of materials and production of metal powders
\nto the refractory industry and other segments including
\nadvanced ceramics. With the acquisition of Elkem Processing
\nServices S.A Elkem will enable further growth by providing
\nadditional specialised products to our current customers,
\nimprove service level and processing capabilities and grow
\nin adjacent segments. The acquisition will expand Elkem's
\nproduct portfolio and create a platform for further growth.
\nThe production facility and related inventory amounts to
\naround NOK 30 million. After the acquisition date revenues
\nof NOK 37 million and pro\ufb01t after tax of NOK 1 million from
\nthe company has been included in consolidated statement of
\ncomprehensive income. If the company had been part of the
\ngroup from 1 January 2022 revenue and pro\ufb01t after tax would
\nhave increased with NOK 96 million and NOK 16 million
\nrespectively, including a NOK 5 million gain from bargain
\npurchase. Elkem Processing Services S.A is presented within
\nthe Silicon Products operating segment.
\nNet cash out\ufb02ow
2022
\nCash transferred on acquisition
(156)
\nCash and cash equivalents of the acquiree
48
\nAcquisition of subsidiaries, net of cash acquired
(108)
\nThe table below summarise the total consideration and the
\nprovisional amounts recognised for assets acquired and
\nliabilities assumed after the business combination:
\nConsideration
2022
\nCash transferred on acquisition
156
\nFair value of 50% pre-transaction ownership in SEAS
122
\nTotal consideration
278
\nAssets acquired and liabilities assumed
\nAmounts in NOK million
Carrying amount
Excess value
Fair value
\nProperty, plant and equipment
\nOther intangible assets
\nDeferred tax assets
\nInventories
\nTrade receivables
\nOther assets, current
\nCash and cash equivalents
\nDeferred tax liabilities
\nInterest-bearing liabilities, non-current
\nDerivatives, non-current
\nTrade payables
\nIncome tax payables
\nInterest-bearing liabilities, current
\nProvisions and other liabilities, current
\nTotal identi\ufb01able net assets
\n823
\n0
\n7
\n29
\n10
\n13
\n48
\n-
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n128
\n119
\n6
\n-
\n-
\n-
\n-
\n-
\n(28)
\n-
\n-
\n-
\n-
\n-
\n-
\n97
\n942
\n6
\n7
\n29
\n10
\n13
\n48
\n(28)
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n225
\nLoss on pre-existing relationship
\nGain on bargain purchase
\n1)
\nTotal recognised
\n-
\n-
\n128
\n-
\n-
\n97
\n58
\n(5)
\n278
\n1)
\nAfter the transaction process started, KeyVest delivered better than expected results. This was not fully re\ufb02ected in the \ufb01nal purchase
\nprice, resulting in a bargain purchase.
\nAcquisition-related costs of NOK 2 million is recognised in
\nother items in the statement of pro\ufb01t or loss in 2022.
\nLoss of control
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 150 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the fair
\nvalue measurement of Elkem's retained investment in Vianode.
\nFollowing the transaction Elkem will classify the remaining
\ninvestment as a joint venture and measure the investment
\nusing the equity method of accounting.
\nThe value of the investment on initial recognition was NOK 576
\nmillion including the \ufb01rst tranche of capital injection on loss
\nof control, NOK 134 million. Vianode had a negative overdraft
\nposition at the transaction date resulted in a positive cash
\ne\ufb00ect for the group on disposal of NOK 151 million.
\nNet cash in\ufb02ow
2022
\nCash received on disposal
-
\nCash and cash equivalents of the subsidiaries
151
\nDisposal of subsidiaries, net of cash
151
\nChanges in composition of the group in 2021,
\nbusiness combination
\nNo business combinations took place in 2021.
5. Equity accounted investments and joint operations
\nPrinciple
\nJoint arrangements
\nInvestments in joint arrangements are classi\ufb01ed as either joint
\noperations or joint ventures, depending on the contractual
\nrights and obligations of each investor.
\nJoint ventures are accounted for using the equity method.
\nUnder the equity method, the investment is initially recognised
\nat cost, and the carrying amount is increased or decreased
\nto recognise Elkem's share of the pro\ufb01t or loss, and other
\ncomprehensive income of the investee after the date of
\nacquisition. In cases where a joint venture's loss or other
\ncomprehensive income exceed the initially recognised cost
\nthe carrying amount is presented to re\ufb02ect Elkem's liability
\nto \ufb01nance the joint venture only to the extent that Elkem has
\nan obligation to fund the investees operations. Any liability to
\n\ufb01nance a joint venture is presented either as part of provisions
\nand other liabilities, current, or netted against Elkem's
\nreceivables towards the joint venture.
\nThe group's interest in joint operations is recognised in relation
\nto its interests in the joint operation:
\n\u2192
Assets, including its share of any assets held jointly
\n\u2192
Liabilities, including its share of any liabilities incurred jointly
\n\u2192
Revenue from the sale of its share of the output arising
\nfrom the joint operation
\n\u2192
Expenses, including its share of any expenses
\nincurred jointly
\nInvestments in associates
\nAssociates are those entities in which the group has signi\ufb01cant
\nin\ufb02uence, but no control over the \ufb01nancial and operating
\npolicies. Signi\ufb01cant in\ufb02uence is presumed to exist when the
\ngroup holds between 20% and 50% of the voting power
\nof another entity. Investments in associates are accounted
\nfor using the equity method. Under the equity method, the
\ninvestment is initially recognised at cost, and the carrying
\namount is increased or decreased to recognise the investor\u2019s
\nshare of the pro\ufb01t or loss and other comprehensive income
\nof the investee after the date of acquisition. In cases where
\nan associates' loss or other comprehensive income exceed
\nthe initially recognised cost the carrying amount is presented
\nto re\ufb02ect Elkem's liability to \ufb01nance the associate only to the
\nextent that Elkem has an obligation to fund the investees
\noperations. Any liability to \ufb01nance an associate is presented
\neither as part of provisions and other liabilities, current, or
\nnetted against Elkem's receivables towards the associate. The
\ngroup\u2019s investments in associates includes goodwill identi\ufb01ed
\non acquisition.
\nUpon disposal of an associate that results in the group
\nlosing signi\ufb01cant in\ufb02uence over that associate, any retained
\ninvestment is measured at fair value at that date.
\nShare of pro\ufb01t from investments in associates
\nand joint ventures
\nShare of pro\ufb01t (loss) from investments in associates and
\njoint ventures is recognised in the statement of pro\ufb01t or loss
\ndepending on the purpose of the investments. Investments
\nthat are closely related to the group's main activities are
\nrecognised as share of pro\ufb01t from equity accounted
\ncompanies, included in operating income. Investments in
\nassociates and joint ventures that do not operate within
\nElkem's main business areas are recognised as share of pro\ufb01t
\nfrom equity accounted \ufb01nancial investments.
\nElkem has interests in the following joint
\narrangements and associates
\nName of entity
Business o\ufb03ce
Country
\nPrincipal
\nactvities
Classi\ufb01cation
\n% equity
\ninterests
\n2022
\n% equity
\ninterests
\n2021
\nElkem Ferroveld JV
Ferrobank
South Africa
Electrode paste
Joint
50 %
50 %
\nEmalahleni
production
operation
\nElkania DA
Hauge i Dalane
Norway
Micro\ufb01ne weighting
Joint
50 %
50 %
\nmaterial
operation
\nNorth Sea Container Line AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nNorth-Sea Management AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nSalten Energigjenvinning AS
Oslo
Norway
Energy production
Joint venture
-
50 %
\nKla\ufb01 EHF
Grundartangi,
Iceland
Transportation /
Joint venture
50 %
50 %
\nAkranes
harbour services
\nWeldermate AS
Oslo
Norway
Robot welding systems
Joint venture
50 %
50 %
\nVianode AS
Oslo
Norway
Battery materials
Joint venture
40 %
-
\nJiangxi Guoxing Intelligence
Yangjialing
China
Energy production
Joint venture
35 %
-
\nEnergy Co. Ltd
\nEuro Partnership BV
Moerdijk
Netherlands
Ship management
\nservices
\nAssociate
50 %
50 %
\nCombined Cargo
Moerdijk
Netherlands
Warehousing
Associate
33 %
33 %
\nWarehousing BV
\nEuro Nordic Agencies
Antwerpen
Belgium
Ship agencies services
Associate
50 %
50 %
\nBelgium NV
\nEPB Chartering AS
Oslo
Norway
Deep sea charter services
Associate
25 %
25 %
\nGIE Osiris
Roussillon
France
Business supplies
\nand equipment
\nAssociate
25 %
25 %
\nFuture Materials AS
Grimstad
Norway
Marketing of
\nresearch facilities
\nAssociate
20 %
20 %
\nThe share of equity interests are equal to Elkem's voting
\nrights, with the exception of Elkem's investments in Vianode
\nAS where the parties in accordance with the shareholder
\nagreement have 33,33% ownership in\ufb02uence. The shareholder
\nagreements for Jiangxi Guoxing Intelligence Energy Co. Ltd
\nrequires a two-third majority in order to approve a majority
\nof business decision on behalf of the entity, making Elkem
\ntogether with one other party in control of the business.
\nOf the entities above, Salten Energigjenvinning AS (SEAS)
\nand Vianode AS is classi\ufb01ed to not operate within Elkem's
\nmain business areas.
\nThere is no quoted market price for the investments.
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by
\nacquisition from Kvitebj\u00f8rn Energi AS. The total investment in
\nthe energy recovery plant has amounted to around NOK 1,180
\nmillion, \ufb01nanced through a NOK 350 million grant from Enova,
\nexternal debt and some equity. The book value of Elkem's 50%
\nshare was NOK 47 million at 31 January 2022. The di\ufb00erence
\nbetween the fair value and the book value of the 50% share
\nresults in a fair value gain of NOK 75 million. This gain is
\npartially o\ufb00set by a loss on pre-existing relationships of NOK
\n58 million and a loss of NOK 13 million related to the cash \ufb02ow
\nreserve from an interest rate hedge in SEAS which has been
\nreclassi\ufb01ed from other comprehensive income to other items
\nin pro\ufb01t and loss as a result of the transaction (see note 12
\nOther items). If the company had been part of the group from 1
\nJanuary 2022 revenue would have increased with NOK 1 million
\nand pro\ufb01t after tax would have decreased with NOK 6 million.
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 149 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the
\nfair value measurement of Elkem's retained investment in
\nVianode. Following the transaction Elkem classi\ufb01ed the
\nremaining investment as a joint venture and measure the
\ninvestment using the equity method of accounting. The value
\nof the investment on initial recognition was NOK 576 million
\nincluding the \ufb01rst tranche of capital injection on loss of control,
\nNOK 134 million.
Elkem has also committed to cover its proportion of total
\ncapital injections in Vianode AS.
Elkem's proportion is NOK
\n534.5 million, whereof NOK 267 million is paid as of 31
\nDecember 2022.
\nAt the end of 2022 Elkem invested in Jiangxi Guoxing
\nIntelligence Energy Co. Ltd (Jinangxi Energy) an entity
\nestablished to build a cogeneration production facility near
\nElkem's plant Silicones Xinghuo. Elkem has committed to cover
\nits proportion of total estimated capital injections in Jinangxi
\nEnergy of CNY 48.7 million, whereof CNY 17.5 million is paid
\nas of 31 December 2022. In addition Elkem has committed to
\nsell the land, buildings and equipment needed to establish the
\ncogeneration facility and when the facility is up and running
\ncommitted to supply excess steam from production.
\nSee note 32 Related parties for commitments and transactions
\nrelated to the joint ventures and associates.
\nMovements in equity accounted investments
\n2022
2021
\nJoint
Joint
\nAmounts in NOK million
ventures
Associates
Total
ventures
Associates
Total
\nOpening balance
115
126
241
74
106
181
\ncquisition of and capital contribution to joint ventures
A
292
-
292
-
-
-
\nhange in equity interest, in relation to business combinations
C
(47)
-
(47)
-
-
-
\nhange in equity interest, in relation to disposal of subsidiaries
C
443
-
443
-
-
-
\nividend received
D
(13)
(14)
(26)
(28)
(7)
(34)
\nhare of pro\ufb01t (loss) from equity accounted companies
S
42
93
135
19
31
49
\nhare of pro\ufb01t (loss) from equity accounted \ufb01nancial investments
S
(17)
-
(17)
37
-
37
\nart of other comprehensive income
P
7
7
15
12
-
12
\nurrency translation di\ufb00erences
C
0
5
5
1
(4)
(3)
\nClosing balance
822
217
1 039
115
126
241
\nShare of pro\ufb01t and loss and carrying amount for equity
\naccounted investments
\n2022
31.12.2022
2021
31.12.2021
\nAmounts in NOK million
Share of pro\ufb01t
Carrying amount
Share of pro\ufb01t
Carrying amount
\nNorth Sea Container Line AS
42
95
19
65
\nNorth-Sea Management AS
(0)
2
1
3
\nSalten Energigjenvinning AS
(6)
-
37
46
\nKla\ufb01 EHF
(0)
1
(1)
1
\nWeldermate AS
(0)
0
-
0
\nVianode AS
(11)
699
-
-
\nJiangxi Guoxing Intelligence Energy Co. Ltd
-
25
-
-
\nEuro Partnership BV
10
44
11
39
\nCombined Cargo Warehousing BV
1
6
1
5
\nEuro Nordic Agencies Belgium NV
1
4
18
36
\nEPB Chartering AS
80
117
(0)
2
\nGIE Osiris
-
46
-
44
\nuture Materials AS
F
-
0
-
0
\nTotal
117
1 039
86
241
\nCash-\ufb02ow from operations, equity accounted investments
\nAmounts in NOK million
2022
2021
\nShare of pro\ufb01t (loss) from equity accounted investments
(135)
(49)
\nDividend received
26
34
\nEquity accounted investments
(108)
(15)
\nSummary of \ufb01nancial information for joint ventures on a 100% basis
\nAmounts in NOK million
\nVianode
\nAS
\n1)
\nOther
\nTotal
\n2022
Other
\nTotal
\n2021
\nCurrent assets,
including cash and cash equivalents NOK 784 million (NOK 92 million)
\nNon-current assets
\nCurrent liabilities, including current \ufb01nancial liabilities NOK 0 million (NOK 0 million)
\nNon-current liabilities, including non-current \ufb01nancial liabilities NOK 0 million
\n(NOK 651 million)
\nNet assets/equity
\n729
\n783
\n120
\n127
\n1 265
\n269
\n92
\n94
\n-
\n268
\n998
\n875
\n214
\n127
\n1 533
\n234
\n817
\n112
\n710
\n229
\n234
\n817
\n112
\n710
\n229
\nExcess value
\nElkem's carrying amount
\nTotal revenue
\nTotal expenses, including depreciation and amortisation NOK 31 million
\n(NOK 5 million) and other items
\nFinancial income, including interest income NOK 0 million (NOK 0 million)
\nFinancial expenses, including interest expenses NOK 4 million (NOK 11 million)
\nTax expense
\nTotal pro\ufb01t for the year
\n193
\n699
\n0
\n(33)
\n5
\n(0)
\n0
\n(28)
\n-
\n123
\n907
\n(834)
\n3
\n(4)
\n(0)
\n71
\n193
\n822
\n907
\n(867)
\n8
\n(4)
\n(0)
\n43
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\nOther comprehensive income
\nTotal comprehensive income
\n-
\n(28)
\n(14)
\n57
\n(14)
\n29
\n24
\n134
\n24
\n134
\nElkem's share of pro\ufb01t for the year
\nElkem's share of other comprehensive income
\n(11)
\n-
\n36
\n7
\n24
\n7
\n55
\n12
\n55
\n12
\n1)
\nThe \ufb01gures for Vianode AS is based on preliminary \ufb01gures for 2022
\nSummary of \ufb01nancial information for associates on a 100% basis
\nAmounts in NOK million
Total 2022
Total 2021
\nTotal operating income
1 785
152
\nTotal expenses
(1 437)
(53)
\nTotal pro\ufb01t for the year
347
99
\nOther comprehensive income
29
-
\nTotal comprehensive income
377
99
\nElkem's share of pro\ufb01t for the year
93
31
\nElkem's share of other comprehensive income
7
-
\nNet assets/equity
768
417
\nElkem's carrying amount
217
126
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12129": {
"value": "4. Composition of the groupJudgements and estimates Business combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Elkem ASA and the following subsidiaries and joint
\noperations make up the composition of the group and are
\nincluded in the consolidated \ufb01nancial statement
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterests
\n31.12.2021
\nEquity
\ninterests
Owner
\nElkania DA (Joint operation)
NOK
Norway
50 %
50 %
Elkem ASA
\nElkem (Thailand) Co., Ltd.
THB
Thailand
100 %
100 %
Elkem ASA
\nElkem Carbon (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem Carbon
\nSingapore Pte. Ltd.
\nElkem Carbon AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Carbon Malaysia Sdn. Bhd.
MYR
Malaysia
100 %
100 %
Elkem Carbon AS
\nElkem Carbon Singapore Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem Carbon AS
\nElkem Chartering Holding AS
NOK
Norway
80 %
80 %
Elkem ASA
\nElkem Digital O\ufb03ce AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Distribution Center B.V.
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Dron\ufb01eld Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Egypt for Industry,
USD
Egypt
100 %
100 %
Elkem International AS
\nContracting & Trading S.A.E.
\nElkem Ferroveld JV (Joint operation)
ZAR
South Africa
50 %
50 %
Elkem Carbon AS
\nElkem Foundry (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Iberia S.L.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem International AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem International Trade (Shanghai) Co., Ltd.
CNY
China
100 %
100 %
Elkem International AS
\nElkem \u00cdsland ehf.
NOK
Iceland
100 %
100 %
Elkem ASA
\nElkem Japan K.K.
JPY
Japan
100 %
100 %
Elkem ASA
\nElkem Korea Co., Ltd.
KRW
Republic
100 %
100 %
Elkem ASA
\nof Korea
\nElkem Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Madencilik Metalurji Sanayi
EUR
Turkey
100 %
100 %
Elkem International AS
\nVe Ticaret Ltd. STI
\nElkem Materials, Inc.
USD
USA
100 %
100 %
NEH LLC
\nElkem Materials Delaware, Inc.
USD
USA
100 %
100 %
Elkem Materials, Inc.
\nElkem Materials Processing (Tianjin) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Materials Processing Services BV
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Materials South America Ltda.
BRL
Brazil
100 %
100 %
Elkem Materials, Inc.
\nElkem Metal Canada Inc.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Milling Services GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Nordic A.S.
DKK
Denmark
100 %
100 %
Elkem ASA
\nElkem Oil\ufb01eld Chemicals FZCO Ltd.
AED
UAE
51 %
51 %
Elkem ASA
\nElkem Paraguay S.A.
USD
Paraguay
100 %
100 %
\n3)
\nElkem ASA
\nElkem Participa\u00e7\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
BRL
Brazil
100 %
100 %
Elkem Carbon AS
\nElkem Processing Services S.A.
\n1)
\nEUR
Belgium
100 %
-
Elkem ASA
\nElkem S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
Company
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterest
\n31.12.2021
\nEquity
\ninterest
\nOwner
\nElkem Silicon Materials (Lanzhou) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicon Product Development AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Siliconas Espa\u00f1a S.A.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem Silicones (UK) Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Silicones Brasil Ltda.
BRL
Brazil
100 %
100 %
Elkem ASA
\nElkem Silicones Canada Corp.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Silicones Czech Republic, s.r.o.
CZK
Czech Republic
100 %
100 %
Elkem ASA
\nElkem Silicones Finland OY
EUR
Finland
100 %
100 %
Elkem ASA
\nElkem Silicones France SAS
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Germany GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Silicones Guangdong Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones Hong Kong Co., Ltd.
HKD
Hong Kong
100 %
100 %
Elkem ASA
\nElkem Silicones Korea Co., Ltd.
KRW
Republic
\nof Korea
\n100 %
100 %
Elkem ASA
\nElkem Silicones Material Zhongshan Co., Ltd.
CNY
China
100 %
100 %
Elkem Silicones
\nGuangdong Co., Ltd.
\nElkem Silicones M\u00e9xico S. De R.L. De C.V.
MXN
Mexico
100 %
100 %
Elkem ASA
\nElkem Silicones Poland sp. z o.o.
PLN
Poland
100 %
100 %
Elkem ASA
\nElkem Silicones Scandinavia AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Silicones Services S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Shanghai Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones USA Corp.
USD
USA
100 %
100 %
Elkem ASA
\nElkem Siliconi Italia S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nElkem Singapore Materials Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem ASA
\nElkem South Asia Private Limited
INR
India
100 %
100 %
Elkem ASA
\nElkem UK Holdings Ltd.
GBP
United Kingdom
100 %
100 %
Elkem ASA
\nElkem Uruguay S.A.
USD
Uruguay
100 %
100 %
Elkem ASA
\nEuro Nordic Logistics BV
EUR
Netherlands
80 %
80 %
Elkem Chartering
\nHolding AS
\nEuro Nordic Netherlands BV
EUR
Netherlands
80 %
80 %
Euro Nordic Logistics BV
\nExplotaci\u00f3n de Rocas Industriales y
EUR
Spain
100 %
100 %
Elkem ASA
\nMinerales S.A. (ERIMSA)
\nIniconce, S.L.
EUR
Spain
100 %
100 %
Explotaci\u00f3n de Rocas
\nIndustriales y Minerales S.A.
\nJiangxi Bluestar Xinghuo Silicones Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nNEH LLC
USD
USA
100 %
100 %
Elkem ASA
\nNorenoComercial Importada e
BRL
Brazil
100 %
100 %
Elkem Participa\u00e7\u00f2es
\nExportadora Limitada
Ind\u00fastria e Com\u00e9rcio
\nLimitada
\nNorsil, S.A.
EUR
Spain
100 %
100 %
Iniconce, S.L
\nTifwer Trade S.A.
USD
Uruguay
100 %
100 %
Elkem Uruguay S.A.
\nVianode AS
\n2)
\nNOK
Norway
-
100 %
Elkem ASA
\n1)
\nPreviously KeyVest Belgium S.A.
\n2)
\nSee Loss of control.
\n3)
\nElkem ASA owns 79% and Elkem Uruguay S.A owns 21%
Changes in composition of the group in 2022,
\nbusiness combinations
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by acquisition
\nfrom Kvitebj\u00f8rn Energi AS. Salten Energigjenvinning AS
\noperates the Elkem Salten energy recovery plant. The
\ninvestment in the energy recovery plant further strengthens
\nElkem's e\ufb00orts to ensure environmentally friendly silicon and
\nferrosilicon production with the lowest possible emissions and
\nlowest possible use of resources. Salten Energigjenvinning AS
\nwas merged with Elkem ASA in 2022 and is presented within
\nthe Silicon products operating segment.
\nThe energy recovery plant has been built in partnership between
\nElkem and Kvitebj\u00f8rn Energi. The total investment in the energy
\nrecovery plant has amounted to around NOK 1,180 million,
\n\ufb01nanced through a NOK 350 million grant from Enova, external
\ndebt and some equity. The book value of Elkem's 50% equity
\naccounted joint venture was NOK 47 million at 31 January 2022.
\nThe di\ufb00erence between the fair value and the book value of the
\n50% share results in a fair value gain of NOK 75 million. This
\ngain is partially o\ufb00set by a loss on pre-existing relationships of
\nNOK 58 million related to delivery of heat from Elkem ASA to
\nSalten Energigjenvinning AS and a loss of NOK 13 million related
\nto the cash \ufb02ow hedge reserve from an interest rate hedge in
\nSEAS which has been reclassi\ufb01ed from other comprehensive
\nincome to other items in pro\ufb01t and loss as a result of the
\ntransaction (see note 12 Other items). If the company had been
\npart of the group from 1 January 2022 revenue would have
\nincreased with NOK 1 million and pro\ufb01t after tax would have
\ndecreased with NOK 6 million.
\n20 June 2022 Elkem acquired Elkem Processing Services
\nS.A (formerly KeyVest Belgium S.A), a specialist company in
\nthe sourcing of materials and production of metal powders
\nto the refractory industry and other segments including
\nadvanced ceramics. With the acquisition of Elkem Processing
\nServices S.A Elkem will enable further growth by providing
\nadditional specialised products to our current customers,
\nimprove service level and processing capabilities and grow
\nin adjacent segments. The acquisition will expand Elkem's
\nproduct portfolio and create a platform for further growth.
\nThe production facility and related inventory amounts to
\naround NOK 30 million. After the acquisition date revenues
\nof NOK 37 million and pro\ufb01t after tax of NOK 1 million from
\nthe company has been included in consolidated statement of
\ncomprehensive income. If the company had been part of the
\ngroup from 1 January 2022 revenue and pro\ufb01t after tax would
\nhave increased with NOK 96 million and NOK 16 million
\nrespectively, including a NOK 5 million gain from bargain
\npurchase. Elkem Processing Services S.A is presented within
\nthe Silicon Products operating segment.
\nNet cash out\ufb02ow
2022
\nCash transferred on acquisition
(156)
\nCash and cash equivalents of the acquiree
48
\nAcquisition of subsidiaries, net of cash acquired
(108)
\nThe table below summarise the total consideration and the
\nprovisional amounts recognised for assets acquired and
\nliabilities assumed after the business combination:
\nConsideration
2022
\nCash transferred on acquisition
156
\nFair value of 50% pre-transaction ownership in SEAS
122
\nTotal consideration
278
\nAssets acquired and liabilities assumed
\nAmounts in NOK million
Carrying amount
Excess value
Fair value
\nProperty, plant and equipment
\nOther intangible assets
\nDeferred tax assets
\nInventories
\nTrade receivables
\nOther assets, current
\nCash and cash equivalents
\nDeferred tax liabilities
\nInterest-bearing liabilities, non-current
\nDerivatives, non-current
\nTrade payables
\nIncome tax payables
\nInterest-bearing liabilities, current
\nProvisions and other liabilities, current
\nTotal identi\ufb01able net assets
\n823
\n0
\n7
\n29
\n10
\n13
\n48
\n-
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n128
\n119
\n6
\n-
\n-
\n-
\n-
\n-
\n(28)
\n-
\n-
\n-
\n-
\n-
\n-
\n97
\n942
\n6
\n7
\n29
\n10
\n13
\n48
\n(28)
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n225
\nLoss on pre-existing relationship
\nGain on bargain purchase
\n1)
\nTotal recognised
\n-
\n-
\n128
\n-
\n-
\n97
\n58
\n(5)
\n278
\n1)
\nAfter the transaction process started, KeyVest delivered better than expected results. This was not fully re\ufb02ected in the \ufb01nal purchase
\nprice, resulting in a bargain purchase.
\nAcquisition-related costs of NOK 2 million is recognised in
\nother items in the statement of pro\ufb01t or loss in 2022.
\nLoss of control
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 150 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the fair
\nvalue measurement of Elkem's retained investment in Vianode.
\nFollowing the transaction Elkem will classify the remaining
\ninvestment as a joint venture and measure the investment
\nusing the equity method of accounting.
\nThe value of the investment on initial recognition was NOK 576
\nmillion including the \ufb01rst tranche of capital injection on loss
\nof control, NOK 134 million. Vianode had a negative overdraft
\nposition at the transaction date resulted in a positive cash
\ne\ufb00ect for the group on disposal of NOK 151 million.
\nNet cash in\ufb02ow
2022
\nCash received on disposal
-
\nCash and cash equivalents of the subsidiaries
151
\nDisposal of subsidiaries, net of cash
151
Changes in composition of the group in 2021,
\nbusiness combination
\nNo business combinations took place in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12130": {
"value": "4. Composition of the groupJudgements and estimates Business combinations
\nElkem uses valuation models as a basis for the measurement of
\nthe fair value of net identi\ufb01able value of transferred assets and
\nliabilities in a business combination. Fair values are normally not
\nreadily observable in an active market for individual assets and
\nliabilities in the business which Elkem operates.
\nProperty, plant and equipment is valued using the cost
\napproach and by estimating the current cost to purchase
\nor replace the asset, at today\u2019s current condition. Intangible
\nassets are identi\ufb01ed and valued based on a relief from
\nroyalty method and multi-period excess earnings method,
\nwhereby; the relief from royalty method considers the
\ndiscounted estimated royalty payments that are expected to
\nbe avoided as a result of the patents being owned, and the
\nmulti-period excess earnings method considers the present
\nvalue of net cash \ufb02ows expected to be generated by the
\ncustomer relationships, by excluding any cash \ufb02ows related to
\ncontributory assets.
\nValuations are subject to numerous assumptions, the fair value
\nestimates may impact assessment of possible impairment of
\nassets and / or goodwill in future periods.
Elkem ASA and the following subsidiaries and joint
\noperations make up the composition of the group and are
\nincluded in the consolidated \ufb01nancial statement
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterests
\n31.12.2021
\nEquity
\ninterests
Owner
\nElkania DA (Joint operation)
NOK
Norway
50 %
50 %
Elkem ASA
\nElkem (Thailand) Co., Ltd.
THB
Thailand
100 %
100 %
Elkem ASA
\nElkem Carbon (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem Carbon
\nSingapore Pte. Ltd.
\nElkem Carbon AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Carbon Malaysia Sdn. Bhd.
MYR
Malaysia
100 %
100 %
Elkem Carbon AS
\nElkem Carbon Singapore Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem Carbon AS
\nElkem Chartering Holding AS
NOK
Norway
80 %
80 %
Elkem ASA
\nElkem Digital O\ufb03ce AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Distribution Center B.V.
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Dron\ufb01eld Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Egypt for Industry,
USD
Egypt
100 %
100 %
Elkem International AS
\nContracting & Trading S.A.E.
\nElkem Ferroveld JV (Joint operation)
ZAR
South Africa
50 %
50 %
Elkem Carbon AS
\nElkem Foundry (China) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Iberia S.L.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem International AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem International Trade (Shanghai) Co., Ltd.
CNY
China
100 %
100 %
Elkem International AS
\nElkem \u00cdsland ehf.
NOK
Iceland
100 %
100 %
Elkem ASA
\nElkem Japan K.K.
JPY
Japan
100 %
100 %
Elkem ASA
\nElkem Korea Co., Ltd.
KRW
Republic
100 %
100 %
Elkem ASA
\nof Korea
\nElkem Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Madencilik Metalurji Sanayi
EUR
Turkey
100 %
100 %
Elkem International AS
\nVe Ticaret Ltd. STI
\nElkem Materials, Inc.
USD
USA
100 %
100 %
NEH LLC
\nElkem Materials Delaware, Inc.
USD
USA
100 %
100 %
Elkem Materials, Inc.
\nElkem Materials Processing (Tianjin) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Materials Processing Services BV
EUR
Netherlands
100 %
100 %
Elkem ASA
\nElkem Materials South America Ltda.
BRL
Brazil
100 %
100 %
Elkem Materials, Inc.
\nElkem Metal Canada Inc.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Milling Services GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Nordic A.S.
DKK
Denmark
100 %
100 %
Elkem ASA
\nElkem Oil\ufb01eld Chemicals FZCO Ltd.
AED
UAE
51 %
51 %
Elkem ASA
\nElkem Paraguay S.A.
USD
Paraguay
100 %
100 %
\n3)
\nElkem ASA
\nElkem Participa\u00e7\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
BRL
Brazil
100 %
100 %
Elkem Carbon AS
\nElkem Processing Services S.A.
\n1)
\nEUR
Belgium
100 %
-
Elkem ASA
\nElkem S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nCompany
\nFunctional
\ncurrency
\nCountry of
\nincorporation
\n31.12.2022
\nEquity
\ninterest
\n31.12.2021
\nEquity
\ninterest
\nOwner
\nElkem Silicon Materials (Lanzhou) Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicon Product Development AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Siliconas Espa\u00f1a S.A.U
EUR
Spain
100 %
100 %
Elkem ASA
\nElkem Silicones (UK) Ltd.
GBP
United Kingdom
100 %
100 %
Elkem UK Holdings Ltd.
\nElkem Silicones Brasil Ltda.
BRL
Brazil
100 %
100 %
Elkem ASA
\nElkem Silicones Canada Corp.
CAD
Canada
100 %
100 %
Elkem ASA
\nElkem Silicones Czech Republic, s.r.o.
CZK
Czech Republic
100 %
100 %
Elkem ASA
\nElkem Silicones Finland OY
EUR
Finland
100 %
100 %
Elkem ASA
\nElkem Silicones France SAS
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Germany GmbH
EUR
Germany
100 %
100 %
Elkem ASA
\nElkem Silicones Guangdong Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones Hong Kong Co., Ltd.
HKD
Hong Kong
100 %
100 %
Elkem ASA
\nElkem Silicones Korea Co., Ltd.
KRW
Republic
\nof Korea
\n100 %
100 %
Elkem ASA
\nElkem Silicones Material Zhongshan Co., Ltd.
CNY
China
100 %
100 %
Elkem Silicones
\nGuangdong Co., Ltd.
\nElkem Silicones M\u00e9xico S. De R.L. De C.V.
MXN
Mexico
100 %
100 %
Elkem ASA
\nElkem Silicones Poland sp. z o.o.
PLN
Poland
100 %
100 %
Elkem ASA
\nElkem Silicones Scandinavia AS
NOK
Norway
100 %
100 %
Elkem ASA
\nElkem Silicones Services S.\u00e0 r.l.
EUR
France
100 %
100 %
Elkem ASA
\nElkem Silicones Shanghai Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nElkem Silicones USA Corp.
USD
USA
100 %
100 %
Elkem ASA
\nElkem Siliconi Italia S.r.l.
EUR
Italy
100 %
100 %
Elkem ASA
\nElkem Singapore Materials Pte. Ltd.
SGD
Singapore
100 %
100 %
Elkem ASA
\nElkem South Asia Private Limited
INR
India
100 %
100 %
Elkem ASA
\nElkem UK Holdings Ltd.
GBP
United Kingdom
100 %
100 %
Elkem ASA
\nElkem Uruguay S.A.
USD
Uruguay
100 %
100 %
Elkem ASA
\nEuro Nordic Logistics BV
EUR
Netherlands
80 %
80 %
Elkem Chartering
\nHolding AS
\nEuro Nordic Netherlands BV
EUR
Netherlands
80 %
80 %
Euro Nordic Logistics BV
\nExplotaci\u00f3n de Rocas Industriales y
EUR
Spain
100 %
100 %
Elkem ASA
\nMinerales S.A. (ERIMSA)
\nIniconce, S.L.
EUR
Spain
100 %
100 %
Explotaci\u00f3n de Rocas
\nIndustriales y Minerales S.A.
\nJiangxi Bluestar Xinghuo Silicones Co., Ltd.
CNY
China
100 %
100 %
Elkem ASA
\nNEH LLC
USD
USA
100 %
100 %
Elkem ASA
\nNorenoComercial Importada e
BRL
Brazil
100 %
100 %
Elkem Participa\u00e7\u00f2es
\nExportadora Limitada
Ind\u00fastria e Com\u00e9rcio
\nLimitada
\nNorsil, S.A.
EUR
Spain
100 %
100 %
Iniconce, S.L
\nTifwer Trade S.A.
USD
Uruguay
100 %
100 %
Elkem Uruguay S.A.
\nVianode AS
\n2)
\nNOK
Norway
-
100 %
Elkem ASA
\n1)
\nPreviously KeyVest Belgium S.A.
\n2)
\nSee Loss of control.
\n3)
\nElkem ASA owns 79% and Elkem Uruguay S.A owns 21%
Changes in composition of the group in 2022,
\nbusiness combinations
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by acquisition
\nfrom Kvitebj\u00f8rn Energi AS. Salten Energigjenvinning AS
\noperates the Elkem Salten energy recovery plant. The
\ninvestment in the energy recovery plant further strengthens
\nElkem's e\ufb00orts to ensure environmentally friendly silicon and
\nferrosilicon production with the lowest possible emissions and
\nlowest possible use of resources. Salten Energigjenvinning AS
\nwas merged with Elkem ASA in 2022 and is presented within
\nthe Silicon products operating segment.
\nThe energy recovery plant has been built in partnership between
\nElkem and Kvitebj\u00f8rn Energi. The total investment in the energy
\nrecovery plant has amounted to around NOK 1,180 million,
\n\ufb01nanced through a NOK 350 million grant from Enova, external
\ndebt and some equity. The book value of Elkem's 50% equity
\naccounted joint venture was NOK 47 million at 31 January 2022.
\nThe di\ufb00erence between the fair value and the book value of the
\n50% share results in a fair value gain of NOK 75 million. This
\ngain is partially o\ufb00set by a loss on pre-existing relationships of
\nNOK 58 million related to delivery of heat from Elkem ASA to
\nSalten Energigjenvinning AS and a loss of NOK 13 million related
\nto the cash \ufb02ow hedge reserve from an interest rate hedge in
\nSEAS which has been reclassi\ufb01ed from other comprehensive
\nincome to other items in pro\ufb01t and loss as a result of the
\ntransaction (see note 12 Other items). If the company had been
\npart of the group from 1 January 2022 revenue would have
\nincreased with NOK 1 million and pro\ufb01t after tax would have
\ndecreased with NOK 6 million.
\n20 June 2022 Elkem acquired Elkem Processing Services
\nS.A (formerly KeyVest Belgium S.A), a specialist company in
\nthe sourcing of materials and production of metal powders
\nto the refractory industry and other segments including
\nadvanced ceramics. With the acquisition of Elkem Processing
\nServices S.A Elkem will enable further growth by providing
\nadditional specialised products to our current customers,
\nimprove service level and processing capabilities and grow
\nin adjacent segments. The acquisition will expand Elkem's
\nproduct portfolio and create a platform for further growth.
\nThe production facility and related inventory amounts to
\naround NOK 30 million. After the acquisition date revenues
\nof NOK 37 million and pro\ufb01t after tax of NOK 1 million from
\nthe company has been included in consolidated statement of
\ncomprehensive income. If the company had been part of the
\ngroup from 1 January 2022 revenue and pro\ufb01t after tax would
\nhave increased with NOK 96 million and NOK 16 million
\nrespectively, including a NOK 5 million gain from bargain
\npurchase. Elkem Processing Services S.A is presented within
\nthe Silicon Products operating segment.
\nNet cash out\ufb02ow
2022
\nCash transferred on acquisition
(156)
\nCash and cash equivalents of the acquiree
48
\nAcquisition of subsidiaries, net of cash acquired
(108)
\nThe table below summarise the total consideration and the
\nprovisional amounts recognised for assets acquired and
\nliabilities assumed after the business combination:
\nConsideration
2022
\nCash transferred on acquisition
156
\nFair value of 50% pre-transaction ownership in SEAS
122
\nTotal consideration
278
\nAssets acquired and liabilities assumed
\nAmounts in NOK million
Carrying amount
Excess value
Fair value
\nProperty, plant and equipment
\nOther intangible assets
\nDeferred tax assets
\nInventories
\nTrade receivables
\nOther assets, current
\nCash and cash equivalents
\nDeferred tax liabilities
\nInterest-bearing liabilities, non-current
\nDerivatives, non-current
\nTrade payables
\nIncome tax payables
\nInterest-bearing liabilities, current
\nProvisions and other liabilities, current
\nTotal identi\ufb01able net assets
\n823
\n0
\n7
\n29
\n10
\n13
\n48
\n-
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n128
\n119
\n6
\n-
\n-
\n-
\n-
\n-
\n(28)
\n-
\n-
\n-
\n-
\n-
\n-
\n97
\n942
\n6
\n7
\n29
\n10
\n13
\n48
\n(28)
\n(650)
\n(87)
\n(7)
\n(3)
\n(10)
\n(46)
\n225
\nLoss on pre-existing relationship
\nGain on bargain purchase
\n1)
\nTotal recognised
\n-
\n-
\n128
\n-
\n-
\n97
\n58
\n(5)
\n278
\n1)
\nAfter the transaction process started, KeyVest delivered better than expected results. This was not fully re\ufb02ected in the \ufb01nal purchase
\nprice, resulting in a bargain purchase.
\nAcquisition-related costs of NOK 2 million is recognised in
\nother items in the statement of pro\ufb01t or loss in 2022.
\nLoss of control
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 150 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the fair
\nvalue measurement of Elkem's retained investment in Vianode.
\nFollowing the transaction Elkem will classify the remaining
\ninvestment as a joint venture and measure the investment
\nusing the equity method of accounting.
\nThe value of the investment on initial recognition was NOK 576
\nmillion including the \ufb01rst tranche of capital injection on loss
\nof control, NOK 134 million. Vianode had a negative overdraft
\nposition at the transaction date resulted in a positive cash
\ne\ufb00ect for the group on disposal of NOK 151 million.
\nNet cash in\ufb02ow
2022
\nCash received on disposal
-
\nCash and cash equivalents of the subsidiaries
151
\nDisposal of subsidiaries, net of cash
151
\nChanges in composition of the group in 2021,
\nbusiness combination
\nNo business combinations took place in 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12133": {
"value": "Consolidation
\nThe consolidated \ufb01nancial statements include the \ufb01nancial
\nstatements of Elkem ASA and entities controlled directly or
\nindirectly by Elkem ASA. The group controls an entity when the
\ngroup is exposed to, or has rights to, variable returns from its
\ninvolvement with the entity and has the ability to a\ufb00ect those
\nreturns through its power over the entity. Subsidiaries are fully
\nconsolidated from the date on which the group obtains control,
\nand are deconsolidated from the date that control ceases.
\nPro\ufb01t or loss and each component of OCI are attributed to
\nthe equity holders of the parent of the group and to non-
\ncontrolling interests, presented on separate lines in the
\n\ufb01nancial statements.
\nAll intra-group assets and liabilities, equity, income
\nand expenses and gains and losses are eliminated in
\nfull on consolidation.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12151": {
"value": "Business combinations Business combinations are accounted for using the
\nacquisition method in accordance with IFRS 3. The
\nconsideration transferred in a business combination is
\nmeasured at fair value, and goodwill is measured as the
\nexcess of the sum of consideration transferred, and net
\nidenti\ufb01able fair value of transferred assets and liabilities.
\nElkem's contingent consideration is classi\ufb01ed as a \ufb01nancial
\nliability and measured at fair value at the acquisition date.
\nThe liability is subsequently measured at fair value at each
\nreporting date, with changes recognised in other items in
\nthe statement of pro\ufb01t or loss. Acquisition-related costs are
\nexpensed as incurred.
\nAcquisitions of non-controlling interests are accounted for
\nas transactions with owners in their capacity as owners, and
\ntherefore no goodwill is recognised as a result. Adjustments
\nto non-controlling interests arising from transactions that do
\nnot involve the loss of control, are based on a proportionate
\namount of the net assets of the subsidiary.
\nDuring a measurement period of maximum one year
\nprovisional amounts recognised at the acquisition date are
\nadjusted to re\ufb02ect new information obtained about facts and
\ncircumstances that existed on the date of acquisition. Any
\nadjustments of identi\ufb01ed assets or liabilities in the acquisition
\nare o\ufb00set by a corresponding increase / decrease in goodwill.
\nBusiness combinations under common control
\nBusiness combinations involving entities under common
\ncontrol are accounted for on a historical cost basis. This
\nmeans applying book value accounting, which is applied in
\nthe following manner:
\n\u2192
Assets and liabilities of the combining entities are
\nre\ufb02ected at their carrying amounts.
\n\u2192
No new goodwill is recognised as a result of
\nthe combination.
\n\u2192
The statement of pro\ufb01t or loss re\ufb02ects the result of
\nthe combining entities for the full year, irrespective
\nof when the combination took place.
\n\u2192
Comparative \ufb01gures are restated.
\n\u2192
The purchase price is booked against equity at
\nthe acquisition date.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12152": {
"value": "Business combinations Business combinations are accounted for using the
\nacquisition method in accordance with IFRS 3. The
\nconsideration transferred in a business combination is
\nmeasured at fair value, and goodwill is measured as the
\nexcess of the sum of consideration transferred, and net
\nidenti\ufb01able fair value of transferred assets and liabilities.
\nElkem's contingent consideration is classi\ufb01ed as a \ufb01nancial
\nliability and measured at fair value at the acquisition date.
\nThe liability is subsequently measured at fair value at each
\nreporting date, with changes recognised in other items in
\nthe statement of pro\ufb01t or loss. Acquisition-related costs are
\nexpensed as incurred.
\nAcquisitions of non-controlling interests are accounted for
\nas transactions with owners in their capacity as owners, and
\ntherefore no goodwill is recognised as a result. Adjustments
\nto non-controlling interests arising from transactions that do
\nnot involve the loss of control, are based on a proportionate
\namount of the net assets of the subsidiary.
\nDuring a measurement period of maximum one year
\nprovisional amounts recognised at the acquisition date are
\nadjusted to re\ufb02ect new information obtained about facts and
\ncircumstances that existed on the date of acquisition. Any
\nadjustments of identi\ufb01ed assets or liabilities in the acquisition
\nare o\ufb00set by a corresponding increase / decrease in goodwill. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12168": {
"value": "Acquisitions of non-controlling interests are accounted for as transactions with owners in their capacity as owners, and
\ntherefore no goodwill is recognised as a result. Adjustments
\nto non-controlling interests arising from transactions that do
\nnot involve the loss of control, are based on a proportionate
\namount of the net assets of the subsidiary.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12931": {
"value": "5. Equity accounted investments and joint operations Elkem has interests in the following joint
\narrangements and associates
\nName of entity
Business o\ufb03ce
Country
\nPrincipal
\nactvities
Classi\ufb01cation
\n% equity
\ninterests
\n2022
\n% equity
\ninterests
\n2021
\nElkem Ferroveld JV
Ferrobank
South Africa
Electrode paste
Joint
50 %
50 %
\nEmalahleni
production
operation
\nElkania DA
Hauge i Dalane
Norway
Micro\ufb01ne weighting
Joint
50 %
50 %
\nmaterial
operation
\nNorth Sea Container Line AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nNorth-Sea Management AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nSalten Energigjenvinning AS
Oslo
Norway
Energy production
Joint venture
-
50 %
\nKla\ufb01 EHF
Grundartangi,
Iceland
Transportation /
Joint venture
50 %
50 %
\nAkranes
harbour services
\nWeldermate AS
Oslo
Norway
Robot welding systems
Joint venture
50 %
50 %
\nVianode AS
Oslo
Norway
Battery materials
Joint venture
40 %
-
\nJiangxi Guoxing Intelligence
Yangjialing
China
Energy production
Joint venture
35 %
-
\nEnergy Co. Ltd
\nEuro Partnership BV
Moerdijk
Netherlands
Ship management
\nservices
\nAssociate
50 %
50 %
\nCombined Cargo
Moerdijk
Netherlands
Warehousing
Associate
33 %
33 %
\nWarehousing BV
\nEuro Nordic Agencies
Antwerpen
Belgium
Ship agencies services
Associate
50 %
50 %
\nBelgium NV
\nEPB Chartering AS
Oslo
Norway
Deep sea charter services
Associate
25 %
25 %
\nGIE Osiris
Roussillon
France
Business supplies
\nand equipment
\nAssociate
25 %
25 %
\nFuture Materials AS
Grimstad
Norway
Marketing of
\nresearch facilities
\nAssociate
20 %
20 %
\nThe share of equity interests are equal to Elkem's voting
\nrights, with the exception of Elkem's investments in Vianode
\nAS where the parties in accordance with the shareholder
\nagreement have 33,33% ownership in\ufb02uence. The shareholder
\nagreements for Jiangxi Guoxing Intelligence Energy Co. Ltd
\nrequires a two-third majority in order to approve a majority
\nof business decision on behalf of the entity, making Elkem
\ntogether with one other party in control of the business.
\nOf the entities above, Salten Energigjenvinning AS (SEAS)
\nand Vianode AS is classi\ufb01ed to not operate within Elkem's
\nmain business areas.
\nThere is no quoted market price for the investments.
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by
\nacquisition from Kvitebj\u00f8rn Energi AS. The total investment in
\nthe energy recovery plant has amounted to around NOK 1,180
\nmillion, \ufb01nanced through a NOK 350 million grant from Enova,
\nexternal debt and some equity. The book value of Elkem's 50%
\nshare was NOK 47 million at 31 January 2022. The di\ufb00erence
\nbetween the fair value and the book value of the 50% share
\nresults in a fair value gain of NOK 75 million. This gain is
\npartially o\ufb00set by a loss on pre-existing relationships of NOK
\n58 million and a loss of NOK 13 million related to the cash \ufb02ow
\nreserve from an interest rate hedge in SEAS which has been
\nreclassi\ufb01ed from other comprehensive income to other items
\nin pro\ufb01t and loss as a result of the transaction (see note 12
\nOther items). If the company had been part of the group from 1
\nJanuary 2022 revenue would have increased with NOK 1 million
\nand pro\ufb01t after tax would have decreased with NOK 6 million.
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 149 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the
\nfair value measurement of Elkem's retained investment in
\nVianode. Following the transaction Elkem classi\ufb01ed the
\nremaining investment as a joint venture and measure the
\ninvestment using the equity method of accounting. The value
\nof the investment on initial recognition was NOK 576 million
\nincluding the \ufb01rst tranche of capital injection on loss of control,
\nNOK 134 million.
Elkem has also committed to cover its proportion of total
\ncapital injections in Vianode AS.
Elkem's proportion is NOK
\n534.5 million, whereof NOK 267 million is paid as of 31
\nDecember 2022.
\nAt the end of 2022 Elkem invested in Jiangxi Guoxing
\nIntelligence Energy Co. Ltd (Jinangxi Energy) an entity
\nestablished to build a cogeneration production facility near
\nElkem's plant Silicones Xinghuo. Elkem has committed to cover
\nits proportion of total estimated capital injections in Jinangxi
\nEnergy of CNY 48.7 million, whereof CNY 17.5 million is paid
\nas of 31 December 2022. In addition Elkem has committed to
\nsell the land, buildings and equipment needed to establish the
\ncogeneration facility and when the facility is up and running
\ncommitted to supply excess steam from production.
\nSee note 32 Related parties for commitments and transactions
\nrelated to the joint ventures and associates.
\nMovements in equity accounted investments
\n2022
2021
\nJoint
Joint
\nAmounts in NOK million
ventures
Associates
Total
ventures
Associates
Total
\nOpening balance
115
126
241
74
106
181
\ncquisition of and capital contribution to joint ventures
A
292
-
292
-
-
-
\nhange in equity interest, in relation to business combinations
C
(47)
-
(47)
-
-
-
\nhange in equity interest, in relation to disposal of subsidiaries
C
443
-
443
-
-
-
\nividend received
D
(13)
(14)
(26)
(28)
(7)
(34)
\nhare of pro\ufb01t (loss) from equity accounted companies
S
42
93
135
19
31
49
\nhare of pro\ufb01t (loss) from equity accounted \ufb01nancial investments
S
(17)
-
(17)
37
-
37
\nart of other comprehensive income
P
7
7
15
12
-
12
\nurrency translation di\ufb00erences
C
0
5
5
1
(4)
(3)
\nClosing balance
822
217
1 039
115
126
241
\nShare of pro\ufb01t and loss and carrying amount for equity
\naccounted investments
\n2022
31.12.2022
2021
31.12.2021
\nAmounts in NOK million
Share of pro\ufb01t
Carrying amount
Share of pro\ufb01t
Carrying amount
\nNorth Sea Container Line AS
42
95
19
65
\nNorth-Sea Management AS
(0)
2
1
3
\nSalten Energigjenvinning AS
(6)
-
37
46
\nKla\ufb01 EHF
(0)
1
(1)
1
\nWeldermate AS
(0)
0
-
0
\nVianode AS
(11)
699
-
-
\nJiangxi Guoxing Intelligence Energy Co. Ltd
-
25
-
-
\nEuro Partnership BV
10
44
11
39
\nCombined Cargo Warehousing BV
1
6
1
5
\nEuro Nordic Agencies Belgium NV
1
4
18
36
\nEPB Chartering AS
80
117
(0)
2
\nGIE Osiris
-
46
-
44
\nuture Materials AS
F
-
0
-
0
\nTotal
117
1 039
86
241
\nCash-\ufb02ow from operations, equity accounted investments
\nAmounts in NOK million
2022
2021
\nShare of pro\ufb01t (loss) from equity accounted investments
(135)
(49)
\nDividend received
26
34
\nEquity accounted investments
(108)
(15)
\nSummary of \ufb01nancial information for joint ventures on a 100% basis
\nAmounts in NOK million
\nVianode
\nAS
\n1)
\nOther
\nTotal
\n2022
Other
\nTotal
\n2021
\nCurrent assets,
including cash and cash equivalents NOK 784 million (NOK 92 million)
\nNon-current assets
\nCurrent liabilities, including current \ufb01nancial liabilities NOK 0 million (NOK 0 million)
\nNon-current liabilities, including non-current \ufb01nancial liabilities NOK 0 million
\n(NOK 651 million)
\nNet assets/equity
\n729
\n783
\n120
\n127
\n1 265
\n269
\n92
\n94
\n-
\n268
\n998
\n875
\n214
\n127
\n1 533
\n234
\n817
\n112
\n710
\n229
\n234
\n817
\n112
\n710
\n229
\nExcess value
\nElkem's carrying amount
\nTotal revenue
\nTotal expenses, including depreciation and amortisation NOK 31 million
\n(NOK 5 million) and other items
\nFinancial income, including interest income NOK 0 million (NOK 0 million)
\nFinancial expenses, including interest expenses NOK 4 million (NOK 11 million)
\nTax expense
\nTotal pro\ufb01t for the year
\n193
\n699
\n0
\n(33)
\n5
\n(0)
\n0
\n(28)
\n-
\n123
\n907
\n(834)
\n3
\n(4)
\n(0)
\n71
\n193
\n822
\n907
\n(867)
\n8
\n(4)
\n(0)
\n43
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\nOther comprehensive income
\nTotal comprehensive income
\n-
\n(28)
\n(14)
\n57
\n(14)
\n29
\n24
\n134
\n24
\n134
\nElkem's share of pro\ufb01t for the year
\nElkem's share of other comprehensive income
\n(11)
\n-
\n36
\n7
\n24
\n7
\n55
\n12
\n55
\n12
\n1)
\nThe \ufb01gures for Vianode AS is based on preliminary \ufb01gures for 2022
\nSummary of \ufb01nancial information for associates on a 100% basis
\nAmounts in NOK million
Total 2022
Total 2021
\nTotal operating income
1 785
152
\nTotal expenses
(1 437)
(53)
\nTotal pro\ufb01t for the year
347
99
\nOther comprehensive income
29
-
\nTotal comprehensive income
377
99
\nElkem's share of pro\ufb01t for the year
93
31
\nElkem's share of other comprehensive income
7
-
\nNet assets/equity
768
417
\nElkem's carrying amount
217
126
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12932": {
"value": "5. Equity accounted investments and joint operations Elkem has interests in the following joint
\narrangements and associates
\nName of entity
Business o\ufb03ce
Country
\nPrincipal
\nactvities
Classi\ufb01cation
\n% equity
\ninterests
\n2022
\n% equity
\ninterests
\n2021
\nElkem Ferroveld JV
Ferrobank
South Africa
Electrode paste
Joint
50 %
50 %
\nEmalahleni
production
operation
\nElkania DA
Hauge i Dalane
Norway
Micro\ufb01ne weighting
Joint
50 %
50 %
\nmaterial
operation
\nNorth Sea Container Line AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nNorth-Sea Management AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nSalten Energigjenvinning AS
Oslo
Norway
Energy production
Joint venture
-
50 %
\nKla\ufb01 EHF
Grundartangi,
Iceland
Transportation /
Joint venture
50 %
50 %
\nAkranes
harbour services
\nWeldermate AS
Oslo
Norway
Robot welding systems
Joint venture
50 %
50 %
\nVianode AS
Oslo
Norway
Battery materials
Joint venture
40 %
-
\nJiangxi Guoxing Intelligence
Yangjialing
China
Energy production
Joint venture
35 %
-
\nEnergy Co. Ltd
\nEuro Partnership BV
Moerdijk
Netherlands
Ship management
\nservices
\nAssociate
50 %
50 %
\nCombined Cargo
Moerdijk
Netherlands
Warehousing
Associate
33 %
33 %
\nWarehousing BV
\nEuro Nordic Agencies
Antwerpen
Belgium
Ship agencies services
Associate
50 %
50 %
\nBelgium NV
\nEPB Chartering AS
Oslo
Norway
Deep sea charter services
Associate
25 %
25 %
\nGIE Osiris
Roussillon
France
Business supplies
\nand equipment
\nAssociate
25 %
25 %
\nFuture Materials AS
Grimstad
Norway
Marketing of
\nresearch facilities
\nAssociate
20 %
20 %
\nThe share of equity interests are equal to Elkem's voting
\nrights, with the exception of Elkem's investments in Vianode
\nAS where the parties in accordance with the shareholder
\nagreement have 33,33% ownership in\ufb02uence. The shareholder
\nagreements for Jiangxi Guoxing Intelligence Energy Co. Ltd
\nrequires a two-third majority in order to approve a majority
\nof business decision on behalf of the entity, making Elkem
\ntogether with one other party in control of the business.
\nOf the entities above, Salten Energigjenvinning AS (SEAS)
\nand Vianode AS is classi\ufb01ed to not operate within Elkem's
\nmain business areas.
\nThere is no quoted market price for the investments.
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by
\nacquisition from Kvitebj\u00f8rn Energi AS. The total investment in
\nthe energy recovery plant has amounted to around NOK 1,180
\nmillion, \ufb01nanced through a NOK 350 million grant from Enova,
\nexternal debt and some equity. The book value of Elkem's 50%
\nshare was NOK 47 million at 31 January 2022. The di\ufb00erence
\nbetween the fair value and the book value of the 50% share
\nresults in a fair value gain of NOK 75 million. This gain is
\npartially o\ufb00set by a loss on pre-existing relationships of NOK
\n58 million and a loss of NOK 13 million related to the cash \ufb02ow
\nreserve from an interest rate hedge in SEAS which has been
\nreclassi\ufb01ed from other comprehensive income to other items
\nin pro\ufb01t and loss as a result of the transaction (see note 12
\nOther items). If the company had been part of the group from 1
\nJanuary 2022 revenue would have increased with NOK 1 million
\nand pro\ufb01t after tax would have decreased with NOK 6 million.
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 149 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the
\nfair value measurement of Elkem's retained investment in
\nVianode. Following the transaction Elkem classi\ufb01ed the
\nremaining investment as a joint venture and measure the
\ninvestment using the equity method of accounting. The value
\nof the investment on initial recognition was NOK 576 million
\nincluding the \ufb01rst tranche of capital injection on loss of control,
\nNOK 134 million.
Elkem has also committed to cover its proportion of total
\ncapital injections in Vianode AS.
Elkem's proportion is NOK
\n534.5 million, whereof NOK 267 million is paid as of 31
\nDecember 2022.
\nAt the end of 2022 Elkem invested in Jiangxi Guoxing
\nIntelligence Energy Co. Ltd (Jinangxi Energy) an entity
\nestablished to build a cogeneration production facility near
\nElkem's plant Silicones Xinghuo. Elkem has committed to cover
\nits proportion of total estimated capital injections in Jinangxi
\nEnergy of CNY 48.7 million, whereof CNY 17.5 million is paid
\nas of 31 December 2022. In addition Elkem has committed to
\nsell the land, buildings and equipment needed to establish the
\ncogeneration facility and when the facility is up and running
\ncommitted to supply excess steam from production.
\nSee note 32 Related parties for commitments and transactions
\nrelated to the joint ventures and associates.
\nMovements in equity accounted investments
\n2022
2021
\nJoint
Joint
\nAmounts in NOK million
ventures
Associates
Total
ventures
Associates
Total
\nOpening balance
115
126
241
74
106
181
\ncquisition of and capital contribution to joint ventures
A
292
-
292
-
-
-
\nhange in equity interest, in relation to business combinations
C
(47)
-
(47)
-
-
-
\nhange in equity interest, in relation to disposal of subsidiaries
C
443
-
443
-
-
-
\nividend received
D
(13)
(14)
(26)
(28)
(7)
(34)
\nhare of pro\ufb01t (loss) from equity accounted companies
S
42
93
135
19
31
49
\nhare of pro\ufb01t (loss) from equity accounted \ufb01nancial investments
S
(17)
-
(17)
37
-
37
\nart of other comprehensive income
P
7
7
15
12
-
12
\nurrency translation di\ufb00erences
C
0
5
5
1
(4)
(3)
\nClosing balance
822
217
1 039
115
126
241
\nShare of pro\ufb01t and loss and carrying amount for equity
\naccounted investments
\n2022
31.12.2022
2021
31.12.2021
\nAmounts in NOK million
Share of pro\ufb01t
Carrying amount
Share of pro\ufb01t
Carrying amount
\nNorth Sea Container Line AS
42
95
19
65
\nNorth-Sea Management AS
(0)
2
1
3
\nSalten Energigjenvinning AS
(6)
-
37
46
\nKla\ufb01 EHF
(0)
1
(1)
1
\nWeldermate AS
(0)
0
-
0
\nVianode AS
(11)
699
-
-
\nJiangxi Guoxing Intelligence Energy Co. Ltd
-
25
-
-
\nEuro Partnership BV
10
44
11
39
\nCombined Cargo Warehousing BV
1
6
1
5
\nEuro Nordic Agencies Belgium NV
1
4
18
36
\nEPB Chartering AS
80
117
(0)
2
\nGIE Osiris
-
46
-
44
\nuture Materials AS
F
-
0
-
0
\nTotal
117
1 039
86
241
\nCash-\ufb02ow from operations, equity accounted investments
\nAmounts in NOK million
2022
2021
\nShare of pro\ufb01t (loss) from equity accounted investments
(135)
(49)
\nDividend received
26
34
\nEquity accounted investments
(108)
(15)
\nSummary of \ufb01nancial information for joint ventures on a 100% basis
\nAmounts in NOK million
\nVianode
\nAS
\n1)
\nOther
\nTotal
\n2022
Other
\nTotal
\n2021
\nCurrent assets,
including cash and cash equivalents NOK 784 million (NOK 92 million)
\nNon-current assets
\nCurrent liabilities, including current \ufb01nancial liabilities NOK 0 million (NOK 0 million)
\nNon-current liabilities, including non-current \ufb01nancial liabilities NOK 0 million
\n(NOK 651 million)
\nNet assets/equity
\n729
\n783
\n120
\n127
\n1 265
\n269
\n92
\n94
\n-
\n268
\n998
\n875
\n214
\n127
\n1 533
\n234
\n817
\n112
\n710
\n229
\n234
\n817
\n112
\n710
\n229
\nExcess value
\nElkem's carrying amount
\nTotal revenue
\nTotal expenses, including depreciation and amortisation NOK 31 million
\n(NOK 5 million) and other items
\nFinancial income, including interest income NOK 0 million (NOK 0 million)
\nFinancial expenses, including interest expenses NOK 4 million (NOK 11 million)
\nTax expense
\nTotal pro\ufb01t for the year
\n193
\n699
\n0
\n(33)
\n5
\n(0)
\n0
\n(28)
\n-
\n123
\n907
\n(834)
\n3
\n(4)
\n(0)
\n71
\n193
\n822
\n907
\n(867)
\n8
\n(4)
\n(0)
\n43
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\nOther comprehensive income
\nTotal comprehensive income
\n-
\n(28)
\n(14)
\n57
\n(14)
\n29
\n24
\n134
\n24
\n134
\nElkem's share of pro\ufb01t for the year
\nElkem's share of other comprehensive income
\n(11)
\n-
\n36
\n7
\n24
\n7
\n55
\n12
\n55
\n12
\n1)
\nThe \ufb01gures for Vianode AS is based on preliminary \ufb01gures for 2022
\nSummary of \ufb01nancial information for associates on a 100% basis
\nAmounts in NOK million
Total 2022
Total 2021
\nTotal operating income
1 785
152
\nTotal expenses
(1 437)
(53)
\nTotal pro\ufb01t for the year
347
99
\nOther comprehensive income
29
-
\nTotal comprehensive income
377
99
\nElkem's share of pro\ufb01t for the year
93
31
\nElkem's share of other comprehensive income
7
-
\nNet assets/equity
768
417
\nElkem's carrying amount
217
126
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfJointVenturesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12933": {
"value": "5. Equity accounted investments and joint operationsElkem has interests in the following joint
\narrangements and associates
\nName of entity
Business o\ufb03ce
Country
\nPrincipal
\nactvities
Classi\ufb01cation
\n% equity
\ninterests
\n2022
\n% equity
\ninterests
\n2021
\nElkem Ferroveld JV
Ferrobank
South Africa
Electrode paste
Joint
50 %
50 %
\nEmalahleni
production
operation
\nElkania DA
Hauge i Dalane
Norway
Micro\ufb01ne weighting
Joint
50 %
50 %
\nmaterial
operation
\nNorth Sea Container Line AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nNorth-Sea Management AS
Haugesund
Norway
Shipping services
Joint venture
50 %
50 %
\nSalten Energigjenvinning AS
Oslo
Norway
Energy production
Joint venture
-
50 %
\nKla\ufb01 EHF
Grundartangi,
Iceland
Transportation /
Joint venture
50 %
50 %
\nAkranes
harbour services
\nWeldermate AS
Oslo
Norway
Robot welding systems
Joint venture
50 %
50 %
\nVianode AS
Oslo
Norway
Battery materials
Joint venture
40 %
-
\nJiangxi Guoxing Intelligence
Yangjialing
China
Energy production
Joint venture
35 %
-
\nEnergy Co. Ltd
\nEuro Partnership BV
Moerdijk
Netherlands
Ship management
\nservices
\nAssociate
50 %
50 %
\nCombined Cargo
Moerdijk
Netherlands
Warehousing
Associate
33 %
33 %
\nWarehousing BV
\nEuro Nordic Agencies
Antwerpen
Belgium
Ship agencies services
Associate
50 %
50 %
\nBelgium NV
\nEPB Chartering AS
Oslo
Norway
Deep sea charter services
Associate
25 %
25 %
\nGIE Osiris
Roussillon
France
Business supplies
\nand equipment
\nAssociate
25 %
25 %
\nFuture Materials AS
Grimstad
Norway
Marketing of
\nresearch facilities
\nAssociate
20 %
20 %
\nThe share of equity interests are equal to Elkem's voting
\nrights, with the exception of Elkem's investments in Vianode
\nAS where the parties in accordance with the shareholder
\nagreement have 33,33% ownership in\ufb02uence. The shareholder
\nagreements for Jiangxi Guoxing Intelligence Energy Co. Ltd
\nrequires a two-third majority in order to approve a majority
\nof business decision on behalf of the entity, making Elkem
\ntogether with one other party in control of the business.
\nOf the entities above, Salten Energigjenvinning AS (SEAS)
\nand Vianode AS is classi\ufb01ed to not operate within Elkem's
\nmain business areas.
\nThere is no quoted market price for the investments.
\n31 January 2022 Elkem increased its ownership in Salten
\nEnergigjenvinning AS (SEAS) from 50% to 100% by
\nacquisition from Kvitebj\u00f8rn Energi AS. The total investment in
\nthe energy recovery plant has amounted to around NOK 1,180
\nmillion, \ufb01nanced through a NOK 350 million grant from Enova,
\nexternal debt and some equity. The book value of Elkem's 50%
\nshare was NOK 47 million at 31 January 2022. The di\ufb00erence
\nbetween the fair value and the book value of the 50% share
\nresults in a fair value gain of NOK 75 million. This gain is
\npartially o\ufb00set by a loss on pre-existing relationships of NOK
\n58 million and a loss of NOK 13 million related to the cash \ufb02ow
\nreserve from an interest rate hedge in SEAS which has been
\nreclassi\ufb01ed from other comprehensive income to other items
\nin pro\ufb01t and loss as a result of the transaction (see note 12
\nOther items). If the company had been part of the group from 1
\nJanuary 2022 revenue would have increased with NOK 1 million
\nand pro\ufb01t after tax would have decreased with NOK 6 million.
\n6 April 2022 Elkem, Hydro and Altor (Altor Fund V) announced
\na partnership with the intention to accelerate the growth of
\nElkem ASA's subsidiary Vianode AS, a producer of sustainable
\nbattery materials. The \ufb01nal regulatory approvals for the
\ntransaction were received on the 14 September 2022 upon
\nwhich Elkem lost of control of Vianode. Elkem has recognised
\na gain of NOK 149 million in the third quarter resulting from
\nthe loss of control. The entire gain is attributable to the
\nfair value measurement of Elkem's retained investment in
\nVianode. Following the transaction Elkem classi\ufb01ed the
\nremaining investment as a joint venture and measure the
\ninvestment using the equity method of accounting. The value
\nof the investment on initial recognition was NOK 576 million
\nincluding the \ufb01rst tranche of capital injection on loss of control,
\nNOK 134 million.
Elkem has also committed to cover its proportion of total
\ncapital injections in Vianode AS.
Elkem's proportion is NOK
\n534.5 million, whereof NOK 267 million is paid as of 31
\nDecember 2022.
\nAt the end of 2022 Elkem invested in Jiangxi Guoxing
\nIntelligence Energy Co. Ltd (Jinangxi Energy) an entity
\nestablished to build a cogeneration production facility near
\nElkem's plant Silicones Xinghuo. Elkem has committed to cover
\nits proportion of total estimated capital injections in Jinangxi
\nEnergy of CNY 48.7 million, whereof CNY 17.5 million is paid
\nas of 31 December 2022. In addition Elkem has committed to
\nsell the land, buildings and equipment needed to establish the
\ncogeneration facility and when the facility is up and running
\ncommitted to supply excess steam from production.
\nSee note 32 Related parties for commitments and transactions
\nrelated to the joint ventures and associates.
\nMovements in equity accounted investments
\n2022
2021
\nJoint
Joint
\nAmounts in NOK million
ventures
Associates
Total
ventures
Associates
Total
\nOpening balance
115
126
241
74
106
181
\ncquisition of and capital contribution to joint ventures
A
292
-
292
-
-
-
\nhange in equity interest, in relation to business combinations
C
(47)
-
(47)
-
-
-
\nhange in equity interest, in relation to disposal of subsidiaries
C
443
-
443
-
-
-
\nividend received
D
(13)
(14)
(26)
(28)
(7)
(34)
\nhare of pro\ufb01t (loss) from equity accounted companies
S
42
93
135
19
31
49
\nhare of pro\ufb01t (loss) from equity accounted \ufb01nancial investments
S
(17)
-
(17)
37
-
37
\nart of other comprehensive income
P
7
7
15
12
-
12
\nurrency translation di\ufb00erences
C
0
5
5
1
(4)
(3)
\nClosing balance
822
217
1 039
115
126
241
\nShare of pro\ufb01t and loss and carrying amount for equity
\naccounted investments
\n2022
31.12.2022
2021
31.12.2021
\nAmounts in NOK million
Share of pro\ufb01t
Carrying amount
Share of pro\ufb01t
Carrying amount
\nNorth Sea Container Line AS
42
95
19
65
\nNorth-Sea Management AS
(0)
2
1
3
\nSalten Energigjenvinning AS
(6)
-
37
46
\nKla\ufb01 EHF
(0)
1
(1)
1
\nWeldermate AS
(0)
0
-
0
\nVianode AS
(11)
699
-
-
\nJiangxi Guoxing Intelligence Energy Co. Ltd
-
25
-
-
\nEuro Partnership BV
10
44
11
39
\nCombined Cargo Warehousing BV
1
6
1
5
\nEuro Nordic Agencies Belgium NV
1
4
18
36
\nEPB Chartering AS
80
117
(0)
2
\nGIE Osiris
-
46
-
44
\nuture Materials AS
F
-
0
-
0
\nTotal
117
1 039
86
241
\nCash-\ufb02ow from operations, equity accounted investments
\nAmounts in NOK million
2022
2021
\nShare of pro\ufb01t (loss) from equity accounted investments
(135)
(49)
\nDividend received
26
34
\nEquity accounted investments
(108)
(15)
\nSummary of \ufb01nancial information for joint ventures on a 100% basis
\nAmounts in NOK million
\nVianode
\nAS
\n1)
\nOther
\nTotal
\n2022
Other
\nTotal
\n2021
\nCurrent assets,
including cash and cash equivalents NOK 784 million (NOK 92 million)
\nNon-current assets
\nCurrent liabilities, including current \ufb01nancial liabilities NOK 0 million (NOK 0 million)
\nNon-current liabilities, including non-current \ufb01nancial liabilities NOK 0 million
\n(NOK 651 million)
\nNet assets/equity
\n729
\n783
\n120
\n127
\n1 265
\n269
\n92
\n94
\n-
\n268
\n998
\n875
\n214
\n127
\n1 533
\n234
\n817
\n112
\n710
\n229
\n234
\n817
\n112
\n710
\n229
\nExcess value
\nElkem's carrying amount
\nTotal revenue
\nTotal expenses, including depreciation and amortisation NOK 31 million
\n(NOK 5 million) and other items
\nFinancial income, including interest income NOK 0 million (NOK 0 million)
\nFinancial expenses, including interest expenses NOK 4 million (NOK 11 million)
\nTax expense
\nTotal pro\ufb01t for the year
\n193
\n699
\n0
\n(33)
\n5
\n(0)
\n0
\n(28)
\n-
\n123
\n907
\n(834)
\n3
\n(4)
\n(0)
\n71
\n193
\n822
\n907
\n(867)
\n8
\n(4)
\n(0)
\n43
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\n-
\n115
\n777
\n(715)
\n125
\n(76)
\n(0)
\n110
\nOther comprehensive income
\nTotal comprehensive income
\n-
\n(28)
\n(14)
\n57
\n(14)
\n29
\n24
\n134
\n24
\n134
\nElkem's share of pro\ufb01t for the year
\nElkem's share of other comprehensive income
\n(11)
\n-
\n36
\n7
\n24
\n7
\n55
\n12
\n55
\n12
\n1)
\nThe \ufb01gures for Vianode AS is based on preliminary \ufb01gures for 2022
\nSummary of \ufb01nancial information for associates on a 100% basis
\nAmounts in NOK million
Total 2022
Total 2021
\nTotal operating income
1 785
152
\nTotal expenses
(1 437)
(53)
\nTotal pro\ufb01t for the year
347
99
\nOther comprehensive income
29
-
\nTotal comprehensive income
377
99
\nElkem's share of pro\ufb01t for the year
93
31
\nElkem's share of other comprehensive income
7
-
\nNet assets/equity
768
417
\nElkem's carrying amount
217
126
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12936": {
"value": "Principle Joint arrangements
\nInvestments in joint arrangements are classi\ufb01ed as either joint
\noperations or joint ventures, depending on the contractual
\nrights and obligations of each investor.
\nJoint ventures are accounted for using the equity method.
\nUnder the equity method, the investment is initially recognised
\nat cost, and the carrying amount is increased or decreased
\nto recognise Elkem's share of the pro\ufb01t or loss, and other
\ncomprehensive income of the investee after the date of
\nacquisition. In cases where a joint venture's loss or other
\ncomprehensive income exceed the initially recognised cost
\nthe carrying amount is presented to re\ufb02ect Elkem's liability
\nto \ufb01nance the joint venture only to the extent that Elkem has
\nan obligation to fund the investees operations. Any liability to
\n\ufb01nance a joint venture is presented either as part of provisions
\nand other liabilities, current, or netted against Elkem's
\nreceivables towards the joint venture.
\nThe group's interest in joint operations is recognised in relation
\nto its interests in the joint operation:
\n\u2192
Assets, including its share of any assets held jointly
\n\u2192
Liabilities, including its share of any liabilities incurred jointly
\n\u2192
Revenue from the sale of its share of the output arising
\nfrom the joint operation
\n\u2192
Expenses, including its share of any expenses
\nincurred jointly
\nInvestments in associates
\nAssociates are those entities in which the group has signi\ufb01cant
\nin\ufb02uence, but no control over the \ufb01nancial and operating
\npolicies. Signi\ufb01cant in\ufb02uence is presumed to exist when the
\ngroup holds between 20% and 50% of the voting power
\nof another entity. Investments in associates are accounted
\nfor using the equity method. Under the equity method, the
\ninvestment is initially recognised at cost, and the carrying
\namount is increased or decreased to recognise the investor\u2019s
\nshare of the pro\ufb01t or loss and other comprehensive income
\nof the investee after the date of acquisition. In cases where
\nan associates' loss or other comprehensive income exceed
\nthe initially recognised cost the carrying amount is presented
\nto re\ufb02ect Elkem's liability to \ufb01nance the associate only to the
\nextent that Elkem has an obligation to fund the investees
\noperations. Any liability to \ufb01nance an associate is presented
\neither as part of provisions and other liabilities, current, or
\nnetted against Elkem's receivables towards the associate. The
\ngroup\u2019s investments in associates includes goodwill identi\ufb01ed
\non acquisition.
\nUpon disposal of an associate that results in the group
\nlosing signi\ufb01cant in\ufb02uence over that associate, any retained
\ninvestment is measured at fair value at that date.
\nShare of pro\ufb01t from investments in associates
\nand joint ventures
\nShare of pro\ufb01t (loss) from investments in associates and
\njoint ventures is recognised in the statement of pro\ufb01t or loss
\ndepending on the purpose of the investments. Investments
\nthat are closely related to the group's main activities are
\nrecognised as share of pro\ufb01t from equity accounted
\ncompanies, included in operating income. Investments in
\nassociates and joint ventures that do not operate within
\nElkem's main business areas are recognised as share of pro\ufb01t
\nfrom equity accounted \ufb01nancial investments.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12939": {
"value": "Joint arrangements Investments in joint arrangements are classi\ufb01ed as either joint
\noperations or joint ventures, depending on the contractual
\nrights and obligations of each investor.
\nJoint ventures are accounted for using the equity method.
\nUnder the equity method, the investment is initially recognised
\nat cost, and the carrying amount is increased or decreased
\nto recognise Elkem's share of the pro\ufb01t or loss, and other
\ncomprehensive income of the investee after the date of
\nacquisition. In cases where a joint venture's loss or other
\ncomprehensive income exceed the initially recognised cost
\nthe carrying amount is presented to re\ufb02ect Elkem's liability
\nto \ufb01nance the joint venture only to the extent that Elkem has
\nan obligation to fund the investees operations. Any liability to
\n\ufb01nance a joint venture is presented either as part of provisions
\nand other liabilities, current, or netted against Elkem's
\nreceivables towards the joint venture.
\nThe group's interest in joint operations is recognised in relation
\nto its interests in the joint operation:
\n\u2192
Assets, including its share of any assets held jointly
\n\u2192
Liabilities, including its share of any liabilities incurred jointly
\n\u2192
Revenue from the sale of its share of the output arising
\nfrom the joint operation
\n\u2192
Expenses, including its share of any expenses
\nincurred jointly",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f12971": {
"value": "Investments in associates Associates are those entities in which the group has signi\ufb01cant
\nin\ufb02uence, but no control over the \ufb01nancial and operating
\npolicies. Signi\ufb01cant in\ufb02uence is presumed to exist when the
\ngroup holds between 20% and 50% of the voting power
\nof another entity. Investments in associates are accounted
\nfor using the equity method. Under the equity method, the
\ninvestment is initially recognised at cost, and the carrying
\namount is increased or decreased to recognise the investor\u2019s
\nshare of the pro\ufb01t or loss and other comprehensive income
\nof the investee after the date of acquisition. In cases where
\nan associates' loss or other comprehensive income exceed
\nthe initially recognised cost the carrying amount is presented
\nto re\ufb02ect Elkem's liability to \ufb01nance the associate only to the
\nextent that Elkem has an obligation to fund the investees
\noperations. Any liability to \ufb01nance an associate is presented
\neither as part of provisions and other liabilities, current, or
\nnetted against Elkem's receivables towards the associate. The
\ngroup\u2019s investments in associates includes goodwill identi\ufb01ed
\non acquisition.
\nUpon disposal of an associate that results in the group
\nlosing signi\ufb01cant in\ufb02uence over that associate, any retained
\ninvestment is measured at fair value at that date. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f13561": {
"value": "6. Operating segmentsElkem's operating segments
\nElkem identi\ufb01es its segments according to the organisation
\nand reporting structure used by group management. Elkem
\nhas three reportable segments; Silicones, Silicon Products and
\nCarbon Solutions.
\nThe Silicones division produces and sells a range of silicone-
\nbased products across various sub-sectors including release
\ncoatings, engineering elastomers, healthcare products,
\nspecialty \ufb02uids, emulsions and resins.
\nThe Silicon Products division produces various grades of
\nmetallurgical silicon, ferrosilicon, foundry alloys and microsilica
\nfor use in a wide range of end applications.
\nThe Carbon Solutions division produces carbon electrode
\nmaterials, lining materials and specialty carbon products for
\nmetallurgical processes for the production of a range of metals.
\nOther comprise Elkem group management and centralised
\nfunctions within \ufb01nance, logistics, power purchase,
\ntechnology, digital o\ufb03ce and strategic projects such as
\nbiocarbon and battery projects. The battery technology
\ncompany Vianode AS was de-consolidated in the third quarter
\nof 2022 and is now classi\ufb01ed as a joint venture.
\nEliminations comprise intersegment sales and pro\ufb01t. Elkem
\nfollows internationally accepted principles for transactions
\nbetween related parties within the group. In general, Elkem
\nseeks to use transaction-based methods (comparable
\nuncontrolled price, transactional net margin method, cost
\nplus and resale price method) in order to set the price for the
\ntransaction.
\nThe main related party transactions between operating
\nsegments in Elkem can be divided as follows:
\n\u2192
Silicon Products sale of metallurgical silicon to Silicones.
\nSales prices are based on sale to external customers and
\nCRU prices.
\n\u2192
Carbon Solutions sale of electrode paste and lining
\nmaterial to Silicon Products. Sales prices are based on
\nprices to external customers.
\n\u2192
Other sale of management services e.g., logistics,
\nprocurement, \ufb01nancial services, technical support and
\nR&D services. Prices are based on cost plus.
\nMajor customers
\nElkem has a range of customers, but no single customer
\namounts to 10% or more of total operating income.
\nMain items by operating segment
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Total
\nRevenue from sale of goods (note 7)
18 994
22 361
3 393
(87)
-
44 660
\nOther revenue (note 7)
66
72
21
199
-
358
\nOther operating income (note 7)
150
542
5
48
-
746
\nShare of pro\ufb01t from equity accounted companies (note 5)
-
(0)
(0)
135
-
135
\nTotal operating income from external customers
19 210
22 974
3 419
295
-
45 898
\nOperating income from other segments
78
1 483
333
395
(2 289)
-
\nTotal operating income
19 288
24 457
3 752
690
(2 289)
45 898
\nOperating expenses
(17 266)
(14 233)
(2 586)
(921)
2 032
(32 973)
\nEBITDA
2 022
10 224
1 166
(231)
(257)
12 925
\nEBIT
743
9 630
1 063
(281)
(257)
10 898
\nCash \ufb02ow from operations
1 271
7 802
620
(156)
14
9 551
\nWorking capital
2 449
5 467
739
(648)
(371)
7 637
\nCapital employed
16 762
11 304
1 597
1 018
(371)
30 310
\nReinvestments
(1 682)
\nStrategic investments
(2 797)
\nMovement CAPEX payables
421
\nCash \ufb02ow from investments in property, plant and equipment
\nand intangible assets, including received investment grants
\n(4 058)
\nMain items by operating segment
\n2021
\nAmounts in NOK million
Silicones
\nSilicon
\nProducts
\nCarbon
\nSolutions
Other
Eliminations
Total
\nRevenue from sale of goods (note 7)
\nOther revenue (note 7)
\nOther operating income (note 7)
\nShare of pro\ufb01t from equity accounted companies (note 5)
\nTotal operating income from external customers
\n17 206
\n43
\n117
\n-
\n17 366
\n13 557
\n96
\n422
\n(1)
\n14 074
\n1 917
\n21
\n5
\n-
\n1 943
\n64
\n179
\n41
\n51
\n335
\n-
\n-
\n-
\n-
\n32 743
\n340
\n586
\n49
\n33 717
\nOperating income from other segments
\nTotal operating income
\n63
\n17 429
\n710
\n14 783
\n234
\n2 176
\n398
\n733
\n(1 404)
\n(1 404)
\n-
\n33 717
\nOperating expenses
(13 758)
(11 081)
(1 669)
(777)
1 358
(25 926)
\nEBITDA
3 672
3 702
508
(44)
(46)
7 791
\nEBIT
2 528
3 154
360
(97)
(46)
5 899
\nCash \ufb02ow from operations
1 448
\nWorking capital
2 517
\nCapital employed
14 678
\nReinvestments
\nStrategic investments
\nMovement CAPEX payables
\nCash \ufb02ow from investments in property, plant and equipment
\nand intangible assets, including received investment grants
\n2 273
\n3 487
\n8 169
\n376
\n276
\n1 003
\n3
\n(518)
\n839
\n0
\n(90)
\n(90)
\n4 100
\n5 673
\n24 599
\n(1 657)
\n(1 717)
\n245
\n(3 128)
De\ufb01nitions
\nSegments performance are evaluated based on EBITDA
\nand EBIT. Elkem's de\ufb01nition of EBITDA may be di\ufb00erent
\nfrom other companies.
\nEBITDA
is de\ufb01ned as Elkem\u2019s pro\ufb01t (loss) for the period,
\nless income tax (expense) bene\ufb01t, \ufb01nance expenses, foreign
\nexchange gains (losses), \ufb01nance income, share of pro\ufb01t
\nfrom equity accounted \ufb01nancial investments, other items
\n(except realised gains and losses from hedge ine\ufb00ectiveness
\nand discontinuation of hedging), impairment losses and
\namortisation and depreciation.
\nEBIT
is de\ufb01ned as Elkem\u2019s pro\ufb01t (loss) for the period, less
\nincome tax (expense) bene\ufb01t, \ufb01nance expenses, foreign
\nexchange gains (losses), \ufb01nance income, share of pro\ufb01t from
\nequity accounted \ufb01nancial investments and other items
\n(except realised gains and losses from hedge ine\ufb00ectiveness
\nand discontinuation of hedging).
\nCash \ufb02ow from operations
is EBITDA including reinvestments,
\nchanges in working capital and equity accounted companies.
\nReinvestments
generally consist of capital expenditure
\nto maintain existing activities or that involve investments
\ndesigned to improve health, safety or the environment.
\nStrategic investments
generally consist of investments which
\nresult in capacity increases at Elkem\u2019s existing plants or
\nthat involve an investment made to meet demand in a new
\ngeographic or product area.
\nWorking capital
is de\ufb01ned as accounts receivable, inventory,
\nother current assets, accounts payable, current employee
\nbene\ufb01t obligations and other current liabilities. Accounts
\nreceivables are de\ufb01ned as trade receivables less bills
\nreceivable. Other current assets are de\ufb01ned as other current
\nassets less current receivables to related parties, current
\ninterest-bearing receivables, tax receivables, grants receivable,
\nassets at fair value through pro\ufb01t or loss and accrued interest
\nincome. Accounts payable are de\ufb01ned as trade payables
\nless CAPEX payables. Other current liabilities are de\ufb01ned as
\nprovisions and other current liabilities less current provisions,
\ncontingent considerations, contract obligations and liabilities
\nto related parties.
\nCapital employed
consists of working capital as de\ufb01ned above,
\nproperty, plant and equipment, right-of-use assets, other
\nintangible assets, goodwill, equity accounted investments,
\ngrants payable, trade payables and prepayments related to
\npurchase of non-current assets. The de\ufb01nition was changed
\nin 2022 to include right-of-use assets, goodwill and other
\nintangible assets. Comparable \ufb01gures are restated.
\nElkem's de\ufb01nitions may be di\ufb00erent from other companies.
\nBelow is a reconciliation of pro\ufb01t (loss) for the year against EBIT and EBITDA:
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nPro\ufb01t (loss) for the year
9 642
\nIncome tax (expense) bene\ufb01t
2 594
\nFinance expenses
313
\nForeign exchange gains (losses)
(85)
\nFinance income
(67)
\nShare of pro\ufb01t from equity accounted \ufb01nancial investments
17
\nOther items
(2 151)
\nOperating pro\ufb01t (loss) before other items
10 263
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and
\ndiscontinuation of hedging
635
\nEBIT
743
9 630
1 063
(281)
(257)
10 898
\nImpairment losses
28
\nAmortisation and depreciation
1 999
\nEBITDA
2 022
10 224
1 166
(231)
(257)
12 925
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nPro\ufb01t (loss) for the year
4 664
\nIncome tax (expense) bene\ufb01t
1 163
\nFinance expenses
276
\nForeign exchange gains (losses)
(241)
\nFinance income
(40)
\nShare of pro\ufb01t from equity accounted \ufb01nancial investments
(37)
\nOther items
(10)
\nOperating pro\ufb01t (loss) before other items
5 775
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and
\ndiscontinuation of hedging
124
\nEBIT
2 528
3 154
360
(97)
(46)
5 899
\nImpairment losses
76
\nAmortisation and depreciation
1 816
\nEBITDA
3 672
3 702
508
(44)
(46)
7 791
\nThe table below show realised e\ufb00ects from Elkem's power and
\nforeign exchange hedging programme, including embedded
\nderivatives and realised e\ufb00ects from hedge ine\ufb00ectiveness and
\ndiscontinuation of hedging, on the di\ufb00erent group segments.
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nRevenue from sale of goods (note 26)
0
37
-
(86)
(49)
\nOperating expenses (note 26)
-
982
44
(15)
1 012
\nTotal realised e\ufb00ects from derivatives included in EBITDA
0
1 019
44
(100)
963
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Eliminations
Elkem
\nRevenue from sale of goods (note 26)
-
27
-
65
92
\nOperating expenses (note 26)
-
295
2
17
315
\nTotal realised e\ufb00ects from derivatives included in EBITDA
-
322
2
82
407
Total revenue by geographic
\nmarket based on customer location
\nAmounts in NOK million
2022
2021
\nNorway
\nOther Nordic countries
\nUnited Kingdom
\nGermany
\nFrance
\nItaly
\nPoland
\nSpain
\nOther European countries
\nEurope
\nAfrica
\nUSA
\nCanada
\nBrazil
\nOther South American countries
\nAmerica
\nChina
\nJapan
\nSouth Korea
\nIndia
\nOther Asian countries
\nAsia
\nRest of the world
\n1 342
\n1 545
\n1 354
\n5 394
\n1 566
\n1 719
\n869
\n1 066
\n3 238
\n18 093
\n345
\n5 470
\n770
\n1 854
\n548
\n8 643
\n10 849
\n2 153
\n501
\n1 485
\n2 792
\n17 780
\n206
\n814
\n1 637
\n1 094
\n2 903
\n791
\n1 274
\n511
\n765
\n2 791
\n12 579
\n217
\n3 451
\n368
\n1 046
\n326
\n5 191
\n10 534
\n1 197
\n549
\n989
\n1 635
\n14 904
\n99
\nTotal revenue before hedging e\ufb00ects
45 067
32 991
\nRealised e\ufb00ects from hedging
\nprograms (note 26)
\nTotal revenue
\n(49)
\n45 018
\n92
\n33 083
\nNon-current assets by geographic
\nareas based on entity location
\nAmounts in NOK million
2022
2021
\nNorway
5 744
4 606
\nOther Nordic countries
1
528
\nUnited Kingdom
38
37
\nGermany
97
49
\nFrance
4 133
3 535
\nItaly
134
126
\nPoland
0
1
\nSpain
324
281
\nOther European countries
177
70
\nEurope
10 647
9 232
\nAfrica
112
89
\nUSA
882
710
\nCanada
643
523
\nBrazil
357
255
\nOther South American countries
494
436
\nAmerica
2 376
1 924
\nChina
10 930
8 411
\nJapan
2
3
\nSouth Korea
230
222
\nIndia
79
71
\nOther Asian countries
48
49
\nAsia
11 288
8 757
\nTotal non-current assets
24 423
20 001
\nNon-current assets are presented less derivatives and
\ndeferred tax assets.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f13564": {
"value": "Principle Elkem identi\ufb01es its segments according to the organisation
\nand reporting structure as decided and followed up by group
\nmanagement. Operating segments are components of a
\nbusiness that are evaluated regularly by the chief operating
\ndecision maker, de\ufb01ned as the CEO, for the purpose of
\nassessing performance and allocating resources. Elkem's
\noperating segments represent separately managed business
\nareas with unique products serving di\ufb00erent markets.
\nSegment performance is evaluated based on EBITDA which is
\nthe primary segment result and operating pro\ufb01t (loss) before
\nother items (EBIT), see de\ufb01nitions below. Elkem's \ufb01nancing
\nand income tax are managed on group basis and are not
\nallocated to operating segments.
\nTransactions between operating segments are conducted on
\nan arm's length basis in a manner similar to transactions with
\nthird parties.
\nRevenues are, in addition, disaggregated by geographical
\nmarket based on the location of the customer.
\nNon-current assets by geographical areas are based on the
\nlocation of the entity owning the assets.
\nThe segment reporting is based on the accounting policies
\napplied for the group with the exception of:
\nRealised e\ufb00ects from hedge ine\ufb00ectiveness and from
\nthe discontinuation of hedging is included in other items
\nin Elkem's statement of pro\ufb01t and loss, but included in
\noperating expenses in the segment reporting. This is because
\nmanagement follows up the operating segments including the
\nimpact of the realised e\ufb00ects from power contracts. Elkem has
\npreviously included realised e\ufb00ects from discontinuation of
\nhedging in other items for both group and operating segments.
\nThe change in presentation does not impact comparable
\n\ufb01gures for 2021.
\nLease payments under internal lease agreements are
\nrecognised as operating expenses on a straight-line basis over
\nthe lease term.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14259": {
"value": "7. Operating income Details of revenue from contracts with customers
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n18 954
\n39
\n-
\n2
\n14
\n48
\n-
\n22 324
\n-
\n38
\n1
\n31
\n-
\n-
\n3 393
\n0
\n-
\n21
\n-
\n(1)
\n-
\n52
\n14
\n133
\n18 954
\n22 362
\n3 393
\n92
\n30
\n232
\nTotal revenue from contracts with customers
19 057
22 395
3 413
197
45 063
\nRental income
2
1
0
1
4
\nRealised hedging e\ufb00ects (note 26)
\nTotal revenue
\n0
\n19 060
\n37
\n22 432
\n-
\n3 414
\n(86)
\n112
\n(49)
\n45 018
\nDetails of revenue from contracts with customers
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n17 111
\n94
\n-
\n19
\n2
\n21
\n-
\n13 529
\n-
\n32
\n8
\n55
\n-
\n-
\n1 917
\n1
\n12
\n7
\n-
\n-
\n-
\n57
\n50
\n71
\n17 111
\n13 623
\n1 917
\n108
\n73
\n155
\nTotal revenue from contracts with customers
17 247
13 624
1 937
178
32 987
\nRental income
2
1
-
1
4
\nRealised currency hedging e\ufb00ects (note 26)
\nTotal revenue
\n-
\n17 249
\n27
\n13 652
\n-
\n1 937
\n65
\n244
\n92
\n33 083
\nDetails of other operating income
\nAmounts in NOK million
2022
2021
\nGain on disposal of \ufb01xed assets
0
0
\nInsurance settlements
19
27
\nGrants (note 8)
717
554
\nOther
10
5
\nTotal other operating income
746
586
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14260": {
"value": "7. Operating income Details of revenue from contracts with customers
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n18 954
\n39
\n-
\n2
\n14
\n48
\n-
\n22 324
\n-
\n38
\n1
\n31
\n-
\n-
\n3 393
\n0
\n-
\n21
\n-
\n(1)
\n-
\n52
\n14
\n133
\n18 954
\n22 362
\n3 393
\n92
\n30
\n232
\nTotal revenue from contracts with customers
19 057
22 395
3 413
197
45 063
\nRental income
2
1
0
1
4
\nRealised hedging e\ufb00ects (note 26)
\nTotal revenue
\n0
\n19 060
\n37
\n22 432
\n-
\n3 414
\n(86)
\n112
\n(49)
\n45 018
\nDetails of revenue from contracts with customers
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n17 111
\n94
\n-
\n19
\n2
\n21
\n-
\n13 529
\n-
\n32
\n8
\n55
\n-
\n-
\n1 917
\n1
\n12
\n7
\n-
\n-
\n-
\n57
\n50
\n71
\n17 111
\n13 623
\n1 917
\n108
\n73
\n155
\nTotal revenue from contracts with customers
17 247
13 624
1 937
178
32 987
\nRental income
2
1
-
1
4
\nRealised currency hedging e\ufb00ects (note 26)
\nTotal revenue
\n-
\n17 249
\n27
\n13 652
\n-
\n1 937
\n65
\n244
\n92
\n33 083
\nDetails of other operating income
\nAmounts in NOK million
2022
2021
\nGain on disposal of \ufb01xed assets
0
0
\nInsurance settlements
19
27
\nGrants (note 8)
717
554
\nOther
10
5
\nTotal other operating income
746
586
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14261": {
"value": "7. Operating incomeDetails of revenue from contracts with customers
\n2022
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n18 954
\n39
\n-
\n2
\n14
\n48
\n-
\n22 324
\n-
\n38
\n1
\n31
\n-
\n-
\n3 393
\n0
\n-
\n21
\n-
\n(1)
\n-
\n52
\n14
\n133
\n18 954
\n22 362
\n3 393
\n92
\n30
\n232
\nTotal revenue from contracts with customers
19 057
22 395
3 413
197
45 063
\nRental income
2
1
0
1
4
\nRealised hedging e\ufb00ects (note 26)
\nTotal revenue
\n0
\n19 060
\n37
\n22 432
\n-
\n3 414
\n(86)
\n112
\n(49)
\n45 018
\nDetails of revenue from contracts with customers
\n2021
\nSilicon
Carbon
\nAmounts in NOK million
Silicones
Products
Solutions
Other
Total
\nSale of goods, Silicones
\nSale of goods, Silicon Products
\nSale of goods, Carbon Solutions
\nRevenue from energy recovery and other energy related income
\nService agreements with related parties (note 32)
\nOther revenue from contracts with customers
\n17 111
\n94
\n-
\n19
\n2
\n21
\n-
\n13 529
\n-
\n32
\n8
\n55
\n-
\n-
\n1 917
\n1
\n12
\n7
\n-
\n-
\n-
\n57
\n50
\n71
\n17 111
\n13 623
\n1 917
\n108
\n73
\n155
\nTotal revenue from contracts with customers
17 247
13 624
1 937
178
32 987
\nRental income
2
1
-
1
4
\nRealised currency hedging e\ufb00ects (note 26)
\nTotal revenue
\n-
\n17 249
\n27
\n13 652
\n-
\n1 937
\n65
\n244
\n92
\n33 083
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14264": {
"value": "Principle Operating income consists of:
\na.
Revenue
\nb.
Other operating income
\nc.
Share of pro\ufb01t (loss) from equity
\naccounted investments (note 5)
\n(a) Revenue
\nRevenue is measured based on the consideration speci\ufb01ed in
\na contract with a customer. Elkem recognises revenue when
\nElkem transfers control over a goods or service to a customer.
\nA \ufb01ve-step process is applied before revenue can be recognised:
\n\u2192
identify contracts with customers
\n\u2192
identify the separate performance obligation
\n\u2192
determine the transaction price of the contract
\n\u2192
allocate the transaction price to each of the separate
\nperformance obligations, and
\n\u2192
recognise the revenue as each performance obligation
\nis satis\ufb01ed.
\nSale of goods
\nElkem's main performance obligation is related to sale of goods
\nwhere the obligation is to deliver agreed volume of products
\nwithin the agreed speci\ufb01cation. Elkem has both short-term and
\nlong-term contracts. Short-term contracts, normally within one
\nmonth, cover delivery of an agreed volume at market price at
\nthe date the order is placed. These types of contracts are most
\ncommon for commodity products, such as sales of ferrosilicon
\nand silicones and sales to customers in China. The long-term
\ncontracts cover a period of a few months and up to one year,
\nwhere the prices normally are \ufb01xed within a volume range.
\nElkem has for sale of metallurgical silicon some contracts that
\ncover a period longer than one year. In these contracts the
\nprices are normally negotiated on an annual basis. Some of
\nElkem's sales contracts include an element of freight services,
\nsee separate section below for accounting policies.
\nRevenue is recognised when control of the goods is transferred
\nto the customer, at an amount that re\ufb02ects the consideration
\nto which Elkem expects to be entitled in exchange for those
\ngoods. Control is transferred to the buyer, according to the
\nagreed delivery term for each sale. Delivery terms are based
\non Incoterms 2020 issued by International Chamber of
\nCommerce, and the main terms are:
\n\"F\" terms, where the buyer arranges and pays for the main
\ncarriage. The risk is transferred to the buyer when the goods
\nare handed to the carrier engaged by the buyer.
\n\"C\" terms, where the group arranges and pays for the main
\ncarriage but without assuming the risk of the main carriage.
\nThe risk is transferred to the buyer when the goods are handed
\nover to the carrier engaged by the seller.
\n\"D\" terms, where the group arranges and pays for the
\ncarriage and retains the risk of the goods until delivery at
\nthe agreed destination. The ownership is transferred to the
\nbuyer upon arrival at the agreed destination, usually the
\npurchaser's warehouse.
\nThe goods are normally sold with standard warranties that
\nthe goods comply with the agreed-upon speci\ufb01cations. These
\nstandard warranties are accounted for using IAS 37 Provisions,
\nContingent Liabilities and Contingent Assets. Elkem does not
\nhave any other signi\ufb01cant obligations for returns or refunds.
\nFreight services included in sale of goods
\nFreight components included in sale of goods on incoterms
\n\"C\" terms are considered as a separate performance obligation
\nand recognised over the period the service is performed.
\nShipping and handling services that occur before the
\ncustomer takes control of the goods for sales on \"D\" terms are
\nconsidered to be part of ful\ufb01lling the sale of the goods.
\nSale of power and revenue connected to energy recovery
\nSale of electric power and revenue connected to energy
\nrecovery, mainly heat supply in the form of steam and hot
\nwater, el-certi\ufb01cates and el-tax, are recognised in income
\nbased on volume and price agreed with the customer. Revenue
\nconnected to energy recovery is mainly based on long-term
\ncontracts where the prices are regulated yearly based on
\nchanges in CPI or government regulated prices, except for
\nthe el-certi\ufb01cates where the price is based on the observable
\nmarket price at date of delivery.
\nRevenue from sale of services
\nRevenue from sale of services is recognised when the services
\nhave been provided. Sale of services are mainly related to
\nmanagement agreements with related parties based on a cost
\nplus a margin and sale of shipping and handling related services.
\n(b) Other operating income
\nInsurance settlements
\nIncome from insurance settlements are recognised as other
\noperating income when it is virtually certain that the group will
\nreceive the compensation. Expected cash \ufb02ows from credit
\ninsurance contracts where such contracts are deemed to be an
\nintegral part of the sale transactions is presented net against
\nimpairment losses trade and other receivables, included in
\nother operating expenses. See note 21 Trade receivables.
\nGrants
\nSee note 8 Grants",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14537": {
"value": "8. GrantsDetails of grants
2022
2021
\nOther
Deduction
Other
\nDeduction
\nAmounts in NOK million
\noperating
\nincome
\nof carrying
\namount FA/IA
\noperating
\nincome
\nof carrying
\namount FA/IA
\nR&D grants from the Norwegian government
59
-
59
\n15
\nR&D grants from the French government
71
-
59
\n-
\nOther R&D grants
13
-
14
\n-
\nCO
compensation from the Norwegian Environment Agency
\n2
\nEnergy recovery related grants
\n497
\n-
\n-
\n-
\n367
\n-
\n-
\n14
\nOther government grants
72
93
54
\n43
\nTotal government grants
712
93
553
\n72
\nNorwegian NO
\nx
\nOther grants
\nfund for reduced emission of NO
\nx
\n1
\n3
\n64
\n-
\n-
\n1
\n31
\n-
\nTotal grants from other than governments
5
64
1
\n31
\nTotal grants
717
157
554
\n103
\nGrants receivable related to \ufb01xed and intangible assets (note 22)
64
\n63
\nGrants receivable related to income (note 22)
862
\n633
\nGrants payable (note 24)
\nGrants, deferred income (note 24)
\n(16)
\n(8)
\n(15)
\n(18)
CO
\n2
\nallowances
\nCO
\n2
\nemission allowances allocated from the government are
\nclassi\ufb01ed as grants, measured at nominal value (zero). The CO
\n2
\nallowance scheme pertains to the group's plants in Europe. If
\nactual emissions exceed the number of allocated allowances,
\nadditional allowances must be purchased and the cost is
\ninclued as a part of production cost of inventory. The allocation
\nof free allowances for the period 2021-2025 has been decided
\nby the national authorities.
\nCO
\n2
\ncompensation
\nThe Norwegian government has since 2013 had a CO
\n2
\ncompensation scheme to partially compensate for CO
\n2
\ncosts included in the power price for certain industries. The
\ncompensation scheme is based on a corresponding scheme
\nfor EU and are approved by the EFTA surveillance authority
\nESA. The previous CO
\n2
\ncompensation scheme ended 31
\nDecember 2020 and a new scheme for 2021-2025 has been
\napproved by ESA and implemented into Norwegian regulation.
\nThe CO
\n2
\ncompensation scheme applies for Elkem's Norwegian
\nSilicon and Ferrosilicon plants. The compensation is based
\non the market price of CO
\n2
\nallowances and will as such vary
\nwith the price development. As the grant compensates power
\ncosts, which are costs recognised as part of the cost price of
\ninventory during the production process, the compensation
\nis recognised in the statement of pro\ufb01t or loss when the
\nproduced goods are sold.
\nNO
\nx
\nFund
\nThe industry in Norway pays a fee for their emission of NO
\nx
\nto a public foundation run by 15 industry and commerce
\nassociations. The foundation is self-\ufb01nanced by the fees and
\nthe purpose is to support projects that reduces NO
\nx
\nemissions
\nfrom the industry in Norway.
\nOther
\nThe remaining grants are mainly related to R&D and energy
\nrecovery projects.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14540": {
"value": "Principle Grants are recognised when it is reasonably assured that
\nElkem will comply with the conditions attached to them
\nand the grants will be received. Grants are recognised in the
\nstatement of pro\ufb01t or loss as other operating income, over
\nthe periods necessary to match them with the cost they are
\nintended to compensate.
\nTax credits related to R&D projects are classi\ufb01ed as
\ngovernment grants in other operating income if they
\nultimately are settled with cash, tax credits settled only via
\ntaxes are classi\ufb01ed as tax allowances. Grants relating to cost
\nof production of goods are recognised as other operating
\nincome when the produced goods are sold. Grants relating to
\nproperty, plant and equipment (\ufb01xed assets) and intangible
\nassets are deducted from the carrying amount of the asset and
\nrecognised in pro\ufb01t or loss as a reduction of the depreciation
\ncharge over the lifetime of the asset. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14714": {
"value": "9. Employee bene\ufb01ts Judgements and estimates
\nEstimation uncertainty is mainly related to de\ufb01ned bene\ufb01t
\npension plans, where the calculation of pension obligations is
\nbased on \ufb01nancial and actuarial assumptions, such as discount
\nrates, future salary and pension adjustments, expected turnover
\nand mortality. Deviations between applied assumptions
\nand actual results in future periods will have e\ufb00ects on the
\ncalculated obligation. See information about sensitivity on
\npension obligations based on changes in main actuarial
\nassumptions below.
\nEmployee bene\ufb01t expenses
\nAmounts in NOK million
2022
2021
\nSalaries, holiday pay and variable compensation
(3 755)
(3 459)
\nEmployer's national insurance contributions / social security tax
(787)
(727)
\nPension expenses
(168)
(137)
\nShare-based payments (note 10)
(24)
(28)
\nOther payments / bene\ufb01ts
(185)
(179)
\nTotal employee bene\ufb01t expenses
(4 919)
(4 530)
\nAverage number of full-time equivalents
7 592
7 178
\nRemuneration to corporate management
\nAmounts in NOK million
2022
2021
\nFixed compensation
(33)
(31)
\nVariable compensation - STI
(20)
(29)
\nVariable compensation - LTI
(31)
(9)
\nOther bene\ufb01ts
(2)
(1)
\nPension bene\ufb01ts
(4)
(4)
\nTotal remuneration to corporate management
(90)
(75)
\nRemuneration provided to the board of directors
(5)
(5)
\nRemuneration provided to the committee remuneration
(1)
(0)
\nFor more details on the remuneration to corporate
\nmanagement see \"Report on salary and other remuneration to
\nleading personnel in Elkem ASA for the \ufb01nancial year 2022\".
\nThe report is published on Elkem's website.
\u2197
Shares and options granted to corporate management and
\nboard members
\n2022
2021
\nNumber
Number of
Number
Number of
\nName
Position
of shares
options
of shares
options
\nHelge Aasen
CEO
46 206
101 000
46 206
101 000
\nMorten Viga
CFO
46 896
408 380
46 896
800 000
\nKatja Lehland
SVP Human Resources
-
400 000
-
800 000
\nAsbj\u00f8rn S\u00f8vik
SVP Green Ventures & Digital
10 000
400 000
10 000
900 000
\nH\u00e5vard Moe
SVP Elkem Technology
110 000
600 000
60 000
900 000
\nLouis Vovelle
SVP Innovation R&D
6 896
425 140
6 896
800 000
\nFr\u00e9d\u00e9ric Jacquin
SVP Business development
81 551
408 380
6 551
850 000
\nInge Grubben-Str\u00f8mnes
SVP Silicon Products
35 189
676 526
35 189
900 000
\nLuiz Simao
SVP Carbon Solutions
20 000
350 000
10 000
650 000
\nLarry Zhang
SVP Silicones
-
250 000
500 000
\nZhigang Hao
\n1)
\nChair
-
-
-
-
\nDag Jakob Opedal
Vice chair
40 000
-
40 000
-
\nOlivier de Clermont-Tonnerre
\n1)
\nBoard member
15 517
-
15 517
-
\nYougen Ge
\n1)
\nBoard member
-
-
-
-
\nMarianne Johnsen
Board member
-
-
15 000
-
\nGrace Tang
Board member
-
-
-
-
\nNathalie Brunelle (from May)
Board member
-
-
-
-
\nJin Wang Johnny Wu (from May)
\n1)
\nBoard member
-
-
-
-
\nTerje Andre Hanssen
Board member (employee representative)
-
-
-
-
\nMarianne F\u00e6r\u00f8yvik
Board member (employee representative)
4 950
-
4 950
-
\nThomas Eggan (from July)
Board member (employee representative)
-
-
-
\nHeidi Feldborg
Observer (employee representative)
-
-
-
-
\nJan Harald Karlsen (from July)
Observer (employee representative)
-
-
-
\nAnja Isabel Dotzenrath (until Apr)
Board member
-
-
-
-
\nKnut Sande (until June)
Board member (employee representative)
-
-
-
-
\nPer Roar Aas (until June)
Observer (employee representative)
-
-
-
-
\n1)
\nRepresentatives for the majority shareholder.
\nEmployee bene\ufb01t assets and obligations
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nPension plan assets, net
\nPension contribution fund (note 22)
\nEmployee prepayments etc.
\nTotal employee bene\ufb01t assets
\n40
\n1
\n-
\n41
\n-
\n1
\n-
\n1
\n-
\n2
\n5
\n7
\n-
\n2
\n8
\n10
\nSalaries, holiday pay and variable compensation
\nEmployer's national insurance contributions / social security
\nPension plan obligations, net
\nOther bene\ufb01t plans
\nTotal employee bene\ufb01t obligations
\ntax
\n-
\n-
\n370
\n119
\n489
\n-
\n-
\n492
\n119
\n611
\n752
\n226
\n-
\n16
\n994
\n761
\n203
\n-
\n12
\n976
\n(a) Salaries, holiday pay and variable compensation
\nThe obligations are related to incurred employee bene\ufb01ts,
\nnot paid.
\nA pro\ufb01t-sharing plan is applicable for French entities with
\nmore than 50 employees, where the bonus liability must be
\ncalculated based on pro\ufb01t after tax, using a speci\ufb01c formula
\ngiven by the authorities. As at 31 December 2022 EUR 2 million
\n(EUR 0 million) is accrued related to the agreement.
\n(b) Pension plans
\nThe group has both de\ufb01ned contribution and de\ufb01ned bene\ufb01t
\nplans. For de\ufb01ned contribution plans the cost is equal to the
\ngroup's contribution to the employee's pension savings during
\nthe period. For de\ufb01ned bene\ufb01t plans the cost is calculated
\nbased on actuarial valuation methods, taking assumptions
\nrelated to the employee's salary, turnover, mortality, discount
\nrate, etc. into consideration.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans are the main pension plan for Elkem's
\nNorwegian entities, where the contribution to each individual
\npension plan is 5% of annual salary up to 7.1G and 15% of annual
\nsalary between 7.1-12G. 1G refers to the Norwegian national
\ninsurance scheme's basic amount, which is NOK 111 477 as at
\n1 May 2022. Pension on salary above 12G is not supported by
\nexternal service providers and is therefore handled as a separate
\nplan and included under de\ufb01ned bene\ufb01t plans.
\nIn addition, a Norwegian multi-employer early retirement
\nscheme called AFP, where su\ufb03cient information to calculate
\neach participant's pension obligation is not available, is
\naccounted for as it is a de\ufb01ned contribution plan in accordance
\nwith the Ministry of Finance's conclusion. The participants in the
\npension plan are jointly responsible for 2/3 of the plan's pension
\nobligation, the government is responsible for the remaining part.
\nThe pension premium in 2022 is 2.6% of the employees' salary
\nbetween 1 and 7.1G, covering this year's pension payments and
\ncontribution to a security fund for future pension obligations.
\nThe yearly premium for 2023 is set to 2.6%.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where the group is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. The group has funded and
\nunfunded bene\ufb01t plans in Norway, France, Germany, UK,
\nCanada, Japan and South Africa. The pension scheme in UK
\nand two of Canada's schemes are overfunded and are net in an
\nasset position. The schemes that are underfunded and are net
\nin a liability position as at 31 December 2022 are distributed as
\nfollows Norway 23%, France 51%, Canada 9%, other Europe
\n14%, other countries 3%. In Canada provisions are also made
\nfor medical insurance as well as pension bene\ufb01t plans.
\nThe Norwegian pension plans are unfunded and comprise
\npension on salaries above 12G, where the expense is 15%
\nof annual base salary that exceeds 12G plus interest on the
\nindividual calculated pension obligation, and some individual
\nretirement schemes that are closed.
\nBreakdown of net pension expenses
\nAmounts in NOK million
2022
2021
\nCurrent service expenses
(43)
(40)
\nAdministration expenses
(1)
(1)
\nNet pension expenses, de\ufb01ned bene\ufb01t plans
(45)
(40)
\nDe\ufb01ned contribution plans
(102)
(78)
\nEarly retirement scheme AFP (Norway)
(21)
(18)
\nTotal pension expenses
(168)
(137)
\nIn addition, interest expenses on net
(9)
(8)
\npension liabilities are recognised as a
\npart of \ufb01nance expenses
\nNet de\ufb01ned bene\ufb01t obligations
\nAmounts in NOK million
2022
2021
\nPresent value of funded pension obligations
(384)
(509)
\nFair value of plan assets
425
487
\nNet funded pension obligations
40
(22)
\nPresent value of unfunded pension obligations
(370)
(470)
\nNet value of funded and unfunded obligations
(329)
(492)
Movements in the de\ufb01ned bene\ufb01t obligations and plan assets
\n2022
2021
\nDe\ufb01ned
De\ufb01ned
Net
De\ufb01ned
De\ufb01ned
Net
\nbene\ufb01t bene\ufb01t plan pension plan
bene\ufb01t
bene\ufb01t plan
pension plan
\nAmounts in NOK million
obligations
assets
obligations
obligations
assets
obligations
\nOpening balance
(978)
487
(492)
(1 014)
460
(554)
\nCurrent service expenses
(43)
-
(43)
(40)
-
(40)
\nInterest (expenses) income
(22)
13
(9)
(18)
10
(8)
\nAdministration expenses
-
(1)
(1)
-
(1)
(1)
\nRemeasurement gains (losses)
237
(91)
146
59
9
69
\nContributions from employer
-
32
32
-
15
15
\nBene\ufb01ts paid
85
(33)
52
40
(23)
17
\nOther changes
3
-
3
-
-
-
\nCurrency translation di\ufb00erences
(36)
18
(19)
(5)
16
10
\nClosing balance
(754)
425
(329)
(978)
487
(492)
\nBreakdown of pension plan assets
31.12.2022
31.12.2021
\nAmounts in NOK million
\nFair value of
\nDistribution%
plan assets
\nFair value of
\nDistribution%
plan assets
\nCash, cash equivalents and money market investments
\nBonds
\nShares
\nProperty
\nOther plan assets
\n1)
\nTotal pension plan assets
\n12 %
\n15 %
\n36 %
\n35 %
\n3 %
\n100 %
\n52
\n62
\n152
\n147
\n12
\n425
\n11 %
\n19 %
\n38 %
\n30 %
\n1 %
\n100 %
\n55
\n95
\n185
\n148
\n4
\n487
\n1)
\nIncludes insurance contracts (Buy in policies and Annuity insured contracts)
\nActual return on plan assets
-16.0 %
(78)
4.3 %
20
\nIn addition, some Norwegian entities have pension
\ncontribution funds, mainly based on excess pension assets
\nfrom settlement of the de\ufb01ned bene\ufb01t plans in 2010. The
\npension contribution funds are classi\ufb01ed as non-current
\npension funds, except next year's expected contributions
\nwhich are classi\ufb01ed as current (see note 22 Other assets)
\nPrincipal assumptions used for the actuarial valuations in
\n2022 (2021)
\nNorway
France
Canada
Germany
UK
\nDiscount rate
4.2%
(2.0%)
3.0%
(0.9%)
5.0%
(3.0%)
3.9%
(1.0%)
5.1%
(1.6%)
\nExpected rate of salary increase
na
(na)
3.0%
(2.1%)
3.5%
(3.5%)
3.0%
(3.0%)
na
(na)
\nAnnual regulation of pensions paid
1.9%
(1.5%)
na
(na)
na
(na)
2.0%
(2.0%)
na
(na)
\nAssumptions regarding future mortality are based on actuarial
\nadvice in accordance with published statistics and experience
\nin each country.
\nSensitivity on pension obligations based on changes in main
\nactuarial assumptions
\nThe de\ufb01ned bene\ufb01t pension schemes expose the group to
\nactuarial risk such as investment risk, interest rate risk, salary
\ngrowth risk, mortality risk and longevity risk.
\nA decrease in corporate bond yields, a rise in in\ufb02ation or
\nan increase in life expectancy would result in an increase
\nto plan liabilities.
\nThe sensitivity analysis below shows estimated e\ufb00ects in the
\nde\ufb01ned pension obligation based on reasonable changes in
\nthe main assumptions.
\nThe calculations are based on a change in one assumption while
\nholding all other assumptions constant. Negative amounts show
\nan expected decrease in the net pension liability.
\nAssumption
\nDiscount rate
Life expectancy
Salary growth
\n0.5%
0.5%
1 year
1 year
0.5%
0.5%
\nAmounts in NOK million
increase
decrease
increase
decrease
increase
decrease
\n2022: E\ufb00ect on the pension obligation
(38)
42
14
(15)
10
(10)
\n2021: E\ufb00ect on the pension obligation
(63)
71
25
(25)
24
(22)
\nAs the group's main pension plans are de\ufb01ned contribution
\nplans, there are no group policies for funding of the de\ufb01ned
\nbene\ufb01t plans. This is managed locally, based on the terms
\nand status for the individual plan.
\nExpected contribution for the pension plans next year and
\naverage duration for the main de\ufb01ned bene\ufb01t plans
\nAmounts in NOK million
Norway
France
Canada
Germany
UK
\nContribution to be paid to de\ufb01ned pension plans next year
5
18
19
3
5
\nWeighted average duration of the de\ufb01ned bene\ufb01t obligations
6 years
14 years
17 years
11 years
11 years
(c) Other bene\ufb01t plans
\nOther employee bene\ufb01ts consist of provisions related to jubilee
\nand long-service bene\ufb01ts, and post-employment bene\ufb01ts to
\nbe paid until ordinary retirement age for former employees in
\nElkem\u2019s Chinese entities.
\nOf total non-current provisions, NOK 64 million (NOK 74
\nmillion) relate to jubilee and long-service bene\ufb01ts in the
\nSilicones segment, mainly in France. Estimated duration of
\nthe obligation is 13 years. Non-current provisions for other
\nemployee bene\ufb01ts for Elkem\u2019s Chinese entities, in the Silicones
\nsegment, are calculated to NOK 35 million (NOK 30 million),
\nmainly consisting of post-employment bene\ufb01ts related to
\nemployees laid o\ufb00 due to reorganisation. No further obligations
\nare expected to incur however in 2022 an addition of NOK 13
\nmillion has incurred related to update of estimate for future
\nhealth insurance premiums. The estimated remaining duration
\nfor these two obligations is 16 years.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14715": {
"value": "9. Employee bene\ufb01ts Judgements and estimates
\nEstimation uncertainty is mainly related to de\ufb01ned bene\ufb01t
\npension plans, where the calculation of pension obligations is
\nbased on \ufb01nancial and actuarial assumptions, such as discount
\nrates, future salary and pension adjustments, expected turnover
\nand mortality. Deviations between applied assumptions
\nand actual results in future periods will have e\ufb00ects on the
\ncalculated obligation. See information about sensitivity on
\npension obligations based on changes in main actuarial
\nassumptions below.
\nEmployee bene\ufb01t expenses
\nAmounts in NOK million
2022
2021
\nSalaries, holiday pay and variable compensation
(3 755)
(3 459)
\nEmployer's national insurance contributions / social security tax
(787)
(727)
\nPension expenses
(168)
(137)
\nShare-based payments (note 10)
(24)
(28)
\nOther payments / bene\ufb01ts
(185)
(179)
\nTotal employee bene\ufb01t expenses
(4 919)
(4 530)
\nAverage number of full-time equivalents
7 592
7 178
\nRemuneration to corporate management
\nAmounts in NOK million
2022
2021
\nFixed compensation
(33)
(31)
\nVariable compensation - STI
(20)
(29)
\nVariable compensation - LTI
(31)
(9)
\nOther bene\ufb01ts
(2)
(1)
\nPension bene\ufb01ts
(4)
(4)
\nTotal remuneration to corporate management
(90)
(75)
\nRemuneration provided to the board of directors
(5)
(5)
\nRemuneration provided to the committee remuneration
(1)
(0)
\nFor more details on the remuneration to corporate
\nmanagement see \"Report on salary and other remuneration to
\nleading personnel in Elkem ASA for the \ufb01nancial year 2022\".
\nThe report is published on Elkem's website.
\u2197
Shares and options granted to corporate management and
\nboard members
\n2022
2021
\nNumber
Number of
Number
Number of
\nName
Position
of shares
options
of shares
options
\nHelge Aasen
CEO
46 206
101 000
46 206
101 000
\nMorten Viga
CFO
46 896
408 380
46 896
800 000
\nKatja Lehland
SVP Human Resources
-
400 000
-
800 000
\nAsbj\u00f8rn S\u00f8vik
SVP Green Ventures & Digital
10 000
400 000
10 000
900 000
\nH\u00e5vard Moe
SVP Elkem Technology
110 000
600 000
60 000
900 000
\nLouis Vovelle
SVP Innovation R&D
6 896
425 140
6 896
800 000
\nFr\u00e9d\u00e9ric Jacquin
SVP Business development
81 551
408 380
6 551
850 000
\nInge Grubben-Str\u00f8mnes
SVP Silicon Products
35 189
676 526
35 189
900 000
\nLuiz Simao
SVP Carbon Solutions
20 000
350 000
10 000
650 000
\nLarry Zhang
SVP Silicones
-
250 000
500 000
\nZhigang Hao
\n1)
\nChair
-
-
-
-
\nDag Jakob Opedal
Vice chair
40 000
-
40 000
-
\nOlivier de Clermont-Tonnerre
\n1)
\nBoard member
15 517
-
15 517
-
\nYougen Ge
\n1)
\nBoard member
-
-
-
-
\nMarianne Johnsen
Board member
-
-
15 000
-
\nGrace Tang
Board member
-
-
-
-
\nNathalie Brunelle (from May)
Board member
-
-
-
-
\nJin Wang Johnny Wu (from May)
\n1)
\nBoard member
-
-
-
-
\nTerje Andre Hanssen
Board member (employee representative)
-
-
-
-
\nMarianne F\u00e6r\u00f8yvik
Board member (employee representative)
4 950
-
4 950
-
\nThomas Eggan (from July)
Board member (employee representative)
-
-
-
\nHeidi Feldborg
Observer (employee representative)
-
-
-
-
\nJan Harald Karlsen (from July)
Observer (employee representative)
-
-
-
\nAnja Isabel Dotzenrath (until Apr)
Board member
-
-
-
-
\nKnut Sande (until June)
Board member (employee representative)
-
-
-
-
\nPer Roar Aas (until June)
Observer (employee representative)
-
-
-
-
\n1)
\nRepresentatives for the majority shareholder.
\nEmployee bene\ufb01t assets and obligations
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nPension plan assets, net
\nPension contribution fund (note 22)
\nEmployee prepayments etc.
\nTotal employee bene\ufb01t assets
\n40
\n1
\n-
\n41
\n-
\n1
\n-
\n1
\n-
\n2
\n5
\n7
\n-
\n2
\n8
\n10
\nSalaries, holiday pay and variable compensation
\nEmployer's national insurance contributions / social security
\nPension plan obligations, net
\nOther bene\ufb01t plans
\nTotal employee bene\ufb01t obligations
\ntax
\n-
\n-
\n370
\n119
\n489
\n-
\n-
\n492
\n119
\n611
\n752
\n226
\n-
\n16
\n994
\n761
\n203
\n-
\n12
\n976
\n(a) Salaries, holiday pay and variable compensation
\nThe obligations are related to incurred employee bene\ufb01ts,
\nnot paid.
\nA pro\ufb01t-sharing plan is applicable for French entities with
\nmore than 50 employees, where the bonus liability must be
\ncalculated based on pro\ufb01t after tax, using a speci\ufb01c formula
\ngiven by the authorities. As at 31 December 2022 EUR 2 million
\n(EUR 0 million) is accrued related to the agreement.
\n(b) Pension plans
\nThe group has both de\ufb01ned contribution and de\ufb01ned bene\ufb01t
\nplans. For de\ufb01ned contribution plans the cost is equal to the
\ngroup's contribution to the employee's pension savings during
\nthe period. For de\ufb01ned bene\ufb01t plans the cost is calculated
\nbased on actuarial valuation methods, taking assumptions
\nrelated to the employee's salary, turnover, mortality, discount
\nrate, etc. into consideration.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans are the main pension plan for Elkem's
\nNorwegian entities, where the contribution to each individual
\npension plan is 5% of annual salary up to 7.1G and 15% of annual
\nsalary between 7.1-12G. 1G refers to the Norwegian national
\ninsurance scheme's basic amount, which is NOK 111 477 as at
\n1 May 2022. Pension on salary above 12G is not supported by
\nexternal service providers and is therefore handled as a separate
\nplan and included under de\ufb01ned bene\ufb01t plans.
\nIn addition, a Norwegian multi-employer early retirement
\nscheme called AFP, where su\ufb03cient information to calculate
\neach participant's pension obligation is not available, is
\naccounted for as it is a de\ufb01ned contribution plan in accordance
\nwith the Ministry of Finance's conclusion. The participants in the
\npension plan are jointly responsible for 2/3 of the plan's pension
\nobligation, the government is responsible for the remaining part.
\nThe pension premium in 2022 is 2.6% of the employees' salary
\nbetween 1 and 7.1G, covering this year's pension payments and
\ncontribution to a security fund for future pension obligations.
\nThe yearly premium for 2023 is set to 2.6%.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where the group is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. The group has funded and
\nunfunded bene\ufb01t plans in Norway, France, Germany, UK,
\nCanada, Japan and South Africa. The pension scheme in UK
\nand two of Canada's schemes are overfunded and are net in an
\nasset position. The schemes that are underfunded and are net
\nin a liability position as at 31 December 2022 are distributed as
\nfollows Norway 23%, France 51%, Canada 9%, other Europe
\n14%, other countries 3%. In Canada provisions are also made
\nfor medical insurance as well as pension bene\ufb01t plans.
\nThe Norwegian pension plans are unfunded and comprise
\npension on salaries above 12G, where the expense is 15%
\nof annual base salary that exceeds 12G plus interest on the
\nindividual calculated pension obligation, and some individual
\nretirement schemes that are closed.
\nBreakdown of net pension expenses
\nAmounts in NOK million
2022
2021
\nCurrent service expenses
(43)
(40)
\nAdministration expenses
(1)
(1)
\nNet pension expenses, de\ufb01ned bene\ufb01t plans
(45)
(40)
\nDe\ufb01ned contribution plans
(102)
(78)
\nEarly retirement scheme AFP (Norway)
(21)
(18)
\nTotal pension expenses
(168)
(137)
\nIn addition, interest expenses on net
(9)
(8)
\npension liabilities are recognised as a
\npart of \ufb01nance expenses
\nNet de\ufb01ned bene\ufb01t obligations
\nAmounts in NOK million
2022
2021
\nPresent value of funded pension obligations
(384)
(509)
\nFair value of plan assets
425
487
\nNet funded pension obligations
40
(22)
\nPresent value of unfunded pension obligations
(370)
(470)
\nNet value of funded and unfunded obligations
(329)
(492)
Movements in the de\ufb01ned bene\ufb01t obligations and plan assets
\n2022
2021
\nDe\ufb01ned
De\ufb01ned
Net
De\ufb01ned
De\ufb01ned
Net
\nbene\ufb01t bene\ufb01t plan pension plan
bene\ufb01t
bene\ufb01t plan
pension plan
\nAmounts in NOK million
obligations
assets
obligations
obligations
assets
obligations
\nOpening balance
(978)
487
(492)
(1 014)
460
(554)
\nCurrent service expenses
(43)
-
(43)
(40)
-
(40)
\nInterest (expenses) income
(22)
13
(9)
(18)
10
(8)
\nAdministration expenses
-
(1)
(1)
-
(1)
(1)
\nRemeasurement gains (losses)
237
(91)
146
59
9
69
\nContributions from employer
-
32
32
-
15
15
\nBene\ufb01ts paid
85
(33)
52
40
(23)
17
\nOther changes
3
-
3
-
-
-
\nCurrency translation di\ufb00erences
(36)
18
(19)
(5)
16
10
\nClosing balance
(754)
425
(329)
(978)
487
(492)
\nBreakdown of pension plan assets
31.12.2022
31.12.2021
\nAmounts in NOK million
\nFair value of
\nDistribution%
plan assets
\nFair value of
\nDistribution%
plan assets
\nCash, cash equivalents and money market investments
\nBonds
\nShares
\nProperty
\nOther plan assets
\n1)
\nTotal pension plan assets
\n12 %
\n15 %
\n36 %
\n35 %
\n3 %
\n100 %
\n52
\n62
\n152
\n147
\n12
\n425
\n11 %
\n19 %
\n38 %
\n30 %
\n1 %
\n100 %
\n55
\n95
\n185
\n148
\n4
\n487
\n1)
\nIncludes insurance contracts (Buy in policies and Annuity insured contracts)
\nActual return on plan assets
-16.0 %
(78)
4.3 %
20
\nIn addition, some Norwegian entities have pension
\ncontribution funds, mainly based on excess pension assets
\nfrom settlement of the de\ufb01ned bene\ufb01t plans in 2010. The
\npension contribution funds are classi\ufb01ed as non-current
\npension funds, except next year's expected contributions
\nwhich are classi\ufb01ed as current (see note 22 Other assets)
\nPrincipal assumptions used for the actuarial valuations in
\n2022 (2021)
\nNorway
France
Canada
Germany
UK
\nDiscount rate
4.2%
(2.0%)
3.0%
(0.9%)
5.0%
(3.0%)
3.9%
(1.0%)
5.1%
(1.6%)
\nExpected rate of salary increase
na
(na)
3.0%
(2.1%)
3.5%
(3.5%)
3.0%
(3.0%)
na
(na)
\nAnnual regulation of pensions paid
1.9%
(1.5%)
na
(na)
na
(na)
2.0%
(2.0%)
na
(na)
\nAssumptions regarding future mortality are based on actuarial
\nadvice in accordance with published statistics and experience
\nin each country.
\nSensitivity on pension obligations based on changes in main
\nactuarial assumptions
\nThe de\ufb01ned bene\ufb01t pension schemes expose the group to
\nactuarial risk such as investment risk, interest rate risk, salary
\ngrowth risk, mortality risk and longevity risk.
\nA decrease in corporate bond yields, a rise in in\ufb02ation or
\nan increase in life expectancy would result in an increase
\nto plan liabilities.
\nThe sensitivity analysis below shows estimated e\ufb00ects in the
\nde\ufb01ned pension obligation based on reasonable changes in
\nthe main assumptions.
\nThe calculations are based on a change in one assumption while
\nholding all other assumptions constant. Negative amounts show
\nan expected decrease in the net pension liability.
\nAssumption
\nDiscount rate
Life expectancy
Salary growth
\n0.5%
0.5%
1 year
1 year
0.5%
0.5%
\nAmounts in NOK million
increase
decrease
increase
decrease
increase
decrease
\n2022: E\ufb00ect on the pension obligation
(38)
42
14
(15)
10
(10)
\n2021: E\ufb00ect on the pension obligation
(63)
71
25
(25)
24
(22)
\nAs the group's main pension plans are de\ufb01ned contribution
\nplans, there are no group policies for funding of the de\ufb01ned
\nbene\ufb01t plans. This is managed locally, based on the terms
\nand status for the individual plan.
\nExpected contribution for the pension plans next year and
\naverage duration for the main de\ufb01ned bene\ufb01t plans
\nAmounts in NOK million
Norway
France
Canada
Germany
UK
\nContribution to be paid to de\ufb01ned pension plans next year
5
18
19
3
5
\nWeighted average duration of the de\ufb01ned bene\ufb01t obligations
6 years
14 years
17 years
11 years
11 years
(c) Other bene\ufb01t plans
\nOther employee bene\ufb01ts consist of provisions related to jubilee
\nand long-service bene\ufb01ts, and post-employment bene\ufb01ts to
\nbe paid until ordinary retirement age for former employees in
\nElkem\u2019s Chinese entities.
\nOf total non-current provisions, NOK 64 million (NOK 74
\nmillion) relate to jubilee and long-service bene\ufb01ts in the
\nSilicones segment, mainly in France. Estimated duration of
\nthe obligation is 13 years. Non-current provisions for other
\nemployee bene\ufb01ts for Elkem\u2019s Chinese entities, in the Silicones
\nsegment, are calculated to NOK 35 million (NOK 30 million),
\nmainly consisting of post-employment bene\ufb01ts related to
\nemployees laid o\ufb00 due to reorganisation. No further obligations
\nare expected to incur however in 2022 an addition of NOK 13
\nmillion has incurred related to update of estimate for future
\nhealth insurance premiums. The estimated remaining duration
\nfor these two obligations is 16 years.
11. Other operating expenses
\nDetails of operating expenses
\nAmounts in NOK million
2022
2021
\nLoss on disposal of \ufb01xed assets
(2)
(5)
\nFreight and commission expenses
(2 395)
(1 661)
\nLeasing short-term and low value contracts (note 16)
(70)
(56)
\nMachinery, equipment, spare parts and operating materials
(1 344)
(1 336)
\nExternal services
\n1)
\n(2 441)
(2 051)
\nInsurance expenses
(137)
(106)
\nImpairment losses trade and other receivables
(2)
9
\nOther operating expenses
\n2) 3)
\n(324)
(330)
\nTotal other operating expenses
(6 714)
(5 536)
\n1)
\nIncluding services from auditor, see speci\ufb01cation below
\n2)
\nIncluding changes in inventories of \ufb01nished goods and work in progress of positive NOK 288 million (positive NOK 1 million)
\n3)
\nIncluding capitalised salary on \ufb01xed asset projects of positive NOK 125 million (positive NOK 114 million)
\nResearch and development
\nDuring 2022, Elkem expensed NOK 1,000 million (NOK 716
\nmillion) related to research and innovation activities, which
\nincludes product and business development, technical
\ncustomer support and improvement projects. In addition,
\nElkem capitalised development expenses of NOK 312 million
\n(NOK 300 million).
\nGrants relating to research and development amount to NOK
\n143 million (NOK 132 million) and are recognised in other
\noperating income. In addition NOK 91 million (NOK 15 million)
\nis recognised as a reduction of intangible assets.
\nAudit fees
\nKPMG is the group auditor of Elkem.
\nFees to KPMG and other audit \ufb01rms
\nAmounts in NOK million
2022
2021
\nKPMG
\nAudit fee
(19)
(19)
\nOther assurance services
(1)
(1)
\nTax services
-
(0)
\nOther services
-
-
\nOther audit \ufb01rms
\nAudit fee
(2)
(2)
\nOther assurance services
(0)
(0)
\nTax services
(2)
(1)
\nOther services
(0)
(1)
\nTotal fees to KPMG and other audit \ufb01rms
(25)
(24)
\nFees to auditors are reported exclusive of VAT.
15. Property, plant and equipment Judgements and estimates
\nEstimated useful lives, residual values (if any) included
\nin calculation of depreciation of PPE are reviewed and, if
\nnecessary, adjusted at least annually.
\nDetails of property, plant and equipment
\n2022
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposal of subsidiaries (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n217
\n1
\n2
\n-
\n1
\n-
\n(0)
\n13
\n8 064
\n13
\n475
\n1
\n185
\n-
\n(10)
\n229
\n23 043
\n34
\n1 271
\n1
\n749
\n-
\n(384)
\n691
\n866
\n5
\n181
\n(6)
\n0
\n-
\n(9)
\n40
\n2 819
\n4 091
\n(1 929)
\n(40)
\n7
\n(29)
\n(12)
\n116
\n35 009
\n4 143
\n-
\n(43)
\n942
\n(29)
\n(415)
\n1 088
\nClosing balance
233
8 957
25 406
1 078
5 022
40 696
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 999)
\n(263)
\n0
\n8
\n(68)
\n(13 085)
\n(1 293)
\n(1)
\n306
\n(365)
\n(430)
\n(137)
\n1
\n6
\n(20)
\n(16 514)
\n(1 693)
\n0
\n321
\n(453)
\nClosing balance
(3 322)
(14 437)
(580)
(18 339)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n(1)
\n(419)
\n(10)
\n6
\n0
\n(13)
\n(2 315)
\n(13)
\n(6)
\n44
\n(68)
\n(1)
\n(0)
\n(0)
\n0
\n(0)
\n(28)
\n(5)
\n-
\n4
\n(1)
\n(2 774)
\n(28)
\n(0)
\n48
\n(82)
\nClosing balance
(11)
(435)
(2 358)
(1)
(30)
(2 836)
\nCarrying amount
\nClosing balance
222
5 200
8 610
497
4 991
19 520
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n2 738
\n5\u201350 years
\nStraight-line
\n6 592
\n3\u201350 years
\nStraight-line
\n252
\n3\u201320 years
\nStraight-line
\n-
9 583
\nCapitalised interest is NOK 20 million in 2022. The weighted
\naverage cost of capital for capitalisation of loan interest in
\n2022 is in the range of 2.5% and 3.7% per annum.
Details of property, plant and equipment
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n184
\n17
\n21
\n-
\n-
\n(0)
\n(5)
\n7 474
\n55
\n344
\n7
\n-
\n(21)
\n205
\n21 720
\n67
\n1 122
\n1
\n-
\n(290)
\n423
\n582
\n132
\n186
\n(14)
\n-
\n(12)
\n(8)
\n1 799
\n2 762
\n(1 674)
\n(105)
\n-
\n(6)
\n42
\n31 759
\n3 033
\n-
\n(110)
\n-
\n(328)
\n656
\nClosing balance
217
8 064
23 043
866
2 819
35 009
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 738)
\n(236)
\n(6)
\n17
\n(37)
\n(11 929)
\n(1 211)
\n(2)
\n228
\n(171)
\n(377)
\n(76)
\n9
\n10
\n4
\n(15 043)
\n(1 523)
\n1
\n255
\n(203)
\nClosing balance
(2 999)
(13 085)
(430)
(16 514)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n0
\n(384)
\n(9)
\n-
\n0
\n(25)
\n(2 162)
\n(54)
\n(0)
\n35
\n(134)
\n(0)
\n(1)
\n0
\n0
\n(0)
\n(26)
\n(3)
\n-
\n2
\n(2)
\n(2 584)
\n(67)
\n-
\n38
\n(160)
\nClosing balance
(11)
(419)
(2 315)
(1)
(28)
(2 774)
\nCarrying amount
\nClosing balance
206
4 646
7 644
435
2 790
15 722
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n1 368
\n5\u201350 years
\nStraight-line
\n6 455
\n3\u201350 years
\nStraight-line
\n126
\n3\u201320 years
\nStraight-line
\n-
7 950
\nCapitalised interest is NOK 5 million in 2021. The weighted
\naverage cost of capital for capitalisation of loan interest in 2021
\nis in the range of 2.5% and 3.1% per annum.
\nElkem has decided to transfer the production at Elkem Carbon
\nMalaysia to other Elkem Carbon Solutions production sites.
\nAn impairment loss of NOK 60 million was recognised in
\n2021 due to the transfer, of which NOK 55 million is related
\nto impairment of property, plant and equipment and NOK
\n5 million to right-of-use assets. The impairment loss of PPE
\nis mainly related to plant, machinery, equipment and motor
\nvehicles and buildings and other property.
16. Leases Judgements and estimates
\nThe lease term is determined as the non-cancellable period
\nof a lease, together with any periods covered by an option
\nto extend the lease if Elkem is reasonably certain to exercise
\nthat option and any periods covered by an option to terminate
\nthe lease if the lessee is reasonably certain not to exercise
\nthat option. Elkem's main renewal options relate to lease
\nof buildings for o\ufb03ce and production purpose, included in
\nPlant, buildings and other property, and lease of land and it is
\nreasonably certain that the renewal option will be used. Elkem
\nreassesses the lease term if there is a signi\ufb01cant event or
\nchange in circumstances that is within its control and a\ufb00ects
\nits ability to exercise, or not to exercise, the option to renew.
Details of right-of-use assets
\n2022
\nBuildings
Plant, machinery,
\nand other
equipment and
O\ufb03ce and other
\nAmounts in NOK million
Land
property
motor vehicles
equipment
Total
\nCost
\nOpening balance
432
730
138
11
1 310
\nAdditions / lease modi\ufb01cations / remeasurements
4
105
21
0
131
\nDisposal of subsidiaries (note 4)
(118)
(145)
-
-
(264)
\nPartial or full termination of agreements
(0)
(46)
(15)
(9)
(71)
\nCurrency translation di\ufb00erences
9
15
7
1
31
\nClosing balance
326
659
150
2
1 138
\nAccumulated depreciation
\nOpening balance
(66)
(143)
(75)
(5)
(288)
\nAdditions
(8)
(79)
(32)
(1)
(119)
\nDisposal of subsidiaries (note 4)
8
10
-
-
18
\nReclassi\ufb01cation
(3)
(7)
-
-
(10)
\nPartial or full termination of agreements
0
32
15
5
53
\nCurrency translation di\ufb00erences
(2)
(6)
(4)
(0)
(12)
\nClosing balance
(70)
(191)
(96)
(1)
(359)
\nImpairment losses
\nOpening balance
-
(1)
-
(4)
(5)
\nDisposals
-
1
-
4
5
\nCurrency translation di\ufb00erences
-
(0)
-
(0)
(0)
\nClosing balance
-
(0)
-
-
0
\nCarrying amount
\nClosing balance
256
468
55
1
779
\nEstimated useful life
8\u201399 years
2\u201325 years
2\u20136 years
3-4 years
\nDepreciation plan
Straight-line
Straight-line
Straight-line
Straight-line
\nDetails of right-of-use assets
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant, machinery,
\nequipment and
\nmotor vehicles
\nO\ufb03ce and other
\nequipment
Total
\nCost
\nOpening balance
\nAdditions / lease modi\ufb01cations / remeasurements
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n415
\n0
\n(0)
\n-
\n17
\n529
\n239
\n0
\n(41)
\n2
\n134
\n18
\n0
\n(10)
\n(5)
\n10
\n2
\n(1)
\n-
\n(0)
\n1 087
\n260
\n-
\n(51)
\n14
\nClosing balance
432
730
138
11
1 310
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n(51)
\n(4)
\n(7)
\n-
\n(3)
\n(105)
\n(77)
\n(0)
\n40
\n(1)
\n(53)
\n(34)
\n0
\n9
\n2
\n(3)
\n(2)
\n0
\n-
\n0
\n(212)
\n(116)
\n(7)
\n49
\n(2)
\nClosing balance
(66)
(143)
(75)
(5)
(288)
\nImpairment losses
\nOpening balance
\nAdditions
\nCurrency translation di\ufb00erences
\n-
\n-
\n-
\n-
\n(1)
\n(0)
\n-
\n-
\n-
\n-
\n(4)
\n(0)
\n-
\n(5)
\n(0)
\nClosing balance
-
(1)
-
(4)
(5)
\nCarrying amount
\nClosing balance
366
586
62
2
1 017
\nEstimated useful life
\nDepreciation plan
\n1\u201399 years
\nStraight-line
\n1\u201325 years
\nStraight-line
\n2\u20135 years
\nStraight-line
\n3-6 years
\nStraight-line
\nCarrying amounts of lease liabilities and the movements during the period
\nAmounts in NOK million
2022
2021
\nOpening balance
801
663
\nAdditions / lease modi\ufb01cations / remeasurements
124
260
\nPartial or full termination of agreements
(6)
(2)
\nDisposal of subsidiaries
(238)
-
\nPayments
(146)
(144)
\nInterest expenses on lease liabilities
30
26
\nCurrency translation di\ufb00erences
13
(2)
\nClosing balance (note 23)
578
801
\nThe maturity analysis of lease liabilities is disclosed in note 23
\nInterest-bearing assets and liabilities
Amounts recognised in consolidated statement of pro\ufb01t or loss
\nAmounts in NOK million
2022
2021
\nDepreciation of right-of-use assets
(119)
(116)
\nInterest expenses on lease liabilities (note 13)
(30)
(26)
\nLeasing expenses, short-term leases (note 11)
(56)
(44)
\nLeasing expenses, low value assets (note 11)
(13)
(11)
\nLeasing expenses, variable lease payments (note 11)
(2)
(2)
\nTotal amount recognised in consolidated statement of pro\ufb01t or loss
(219)
(199)
\n17. Other intangible assets
Judgements and estimates
\nEstimated useful lives are used in calculation of amortisation
\nof intangible assets, these are reviewed, and if necessary
\nadjusted, at least annually.
\nDetails of intangible assets
\n2022
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n103
\n-
\n828
\n-
\n567
\n24
\n775
\n1
\n335
\n0
\n568
\n310
\n3 175
\n335
\nTransferred from CiP
-
-
5
58
-
(63)
-
\nReclassi\ufb01cation
-
3
43
-
(1)
7
53
\nBusiness combinations (note 4)
-
0
-
-
6
-
6
\nDisposal of subsidiaries (note 4)
-
-
-
-
-
(460)
(460)
\nDisposals
-
-
(30)
-
-
(3)
(33)
\nCurrency translation di\ufb00erences
5
36
18
46
11
18
134
\nClosing balance
108
868
627
880
350
377
3 209
\nAccumulated amortisation
\nOpening balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nAdditions
(2)
(41)
(54)
(57)
(33)
(186)
\nReclassi\ufb01cation
-
-
(1)
-
1
(0)
\nDisposals
-
-
8
-
-
8
\nCurrency translation di\ufb00erences
(3)
(26)
(12)
(30)
(3)
(74)
\nClosing balance
(59)
(579)
(457)
(606)
(122)
(1 824)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nCurrency translation di\ufb00erences
(0)
-
-
-
-
-
(0)
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
48
288
170
273
228
377
1 385
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2022 consists mainly of capitalisation of development projects of NOK 312 million of which NOK 230 million is related to Elkem's
\nbiocarbon initiative and battery projects.
Details of intangible assets
\n2021
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n108
\n-
\n836
\n1
\n469
\n16
\n714
\n-
\n322
\n-
\n305
\n324
\n2 753
\n342
\nTransferred from CiP
-
2
6
80
-
(87)
-
\nReclassi\ufb01cation
-
8
81
-
-
29
118
\nBusiness combinations (note 4)
-
-
-
-
-
-
-
\nDisposals
-
-
(9)
-
(0)
-
(9)
\nCurrency translation di\ufb00erences
(5)
(19)
4
(19)
12
(2)
(28)
\nClosing balance
103
828
567
775
335
568
3 175
\nAccumulated amortisation
\nOpening balance
(56)
(487)
(349)
(486)
(55)
(1 433)
\nAdditions
(1)
(41)
(50)
(53)
(31)
(177)
\nReclassi\ufb01cation
-
-
(1)
-
-
(1)
\nDisposals
-
-
5
-
0
5
\nCurrency translation di\ufb00erences
3
15
(3)
21
(1)
35
\nClosing balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nAdditions
-
-
(4)
-
-
-
(4)
\nDisposals
-
-
4
-
-
-
4
\nCurrency translation di\ufb00erences
0
-
-
-
-
-
0
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
47
315
169
256
248
568
1 602
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2021 consists mainly of capitalisation of development projects of NOK 300 million of which NOK 228 million is related to Elkem's
\nbiocarbon initiative and battery projects.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14716": {
"value": "9. Employee bene\ufb01tsJudgements and estimates
\nEstimation uncertainty is mainly related to de\ufb01ned bene\ufb01t
\npension plans, where the calculation of pension obligations is
\nbased on \ufb01nancial and actuarial assumptions, such as discount
\nrates, future salary and pension adjustments, expected turnover
\nand mortality. Deviations between applied assumptions
\nand actual results in future periods will have e\ufb00ects on the
\ncalculated obligation. See information about sensitivity on
\npension obligations based on changes in main actuarial
\nassumptions below.
\nEmployee bene\ufb01t expenses
\nAmounts in NOK million
2022
2021
\nSalaries, holiday pay and variable compensation
(3 755)
(3 459)
\nEmployer's national insurance contributions / social security tax
(787)
(727)
\nPension expenses
(168)
(137)
\nShare-based payments (note 10)
(24)
(28)
\nOther payments / bene\ufb01ts
(185)
(179)
\nTotal employee bene\ufb01t expenses
(4 919)
(4 530)
\nAverage number of full-time equivalents
7 592
7 178
\nRemuneration to corporate management
\nAmounts in NOK million
2022
2021
\nFixed compensation
(33)
(31)
\nVariable compensation - STI
(20)
(29)
\nVariable compensation - LTI
(31)
(9)
\nOther bene\ufb01ts
(2)
(1)
\nPension bene\ufb01ts
(4)
(4)
\nTotal remuneration to corporate management
(90)
(75)
\nRemuneration provided to the board of directors
(5)
(5)
\nRemuneration provided to the committee remuneration
(1)
(0)
\nFor more details on the remuneration to corporate
\nmanagement see \"Report on salary and other remuneration to
\nleading personnel in Elkem ASA for the \ufb01nancial year 2022\".
\nThe report is published on Elkem's website.
\u2197
Shares and options granted to corporate management and
\nboard members
\n2022
2021
\nNumber
Number of
Number
Number of
\nName
Position
of shares
options
of shares
options
\nHelge Aasen
CEO
46 206
101 000
46 206
101 000
\nMorten Viga
CFO
46 896
408 380
46 896
800 000
\nKatja Lehland
SVP Human Resources
-
400 000
-
800 000
\nAsbj\u00f8rn S\u00f8vik
SVP Green Ventures & Digital
10 000
400 000
10 000
900 000
\nH\u00e5vard Moe
SVP Elkem Technology
110 000
600 000
60 000
900 000
\nLouis Vovelle
SVP Innovation R&D
6 896
425 140
6 896
800 000
\nFr\u00e9d\u00e9ric Jacquin
SVP Business development
81 551
408 380
6 551
850 000
\nInge Grubben-Str\u00f8mnes
SVP Silicon Products
35 189
676 526
35 189
900 000
\nLuiz Simao
SVP Carbon Solutions
20 000
350 000
10 000
650 000
\nLarry Zhang
SVP Silicones
-
250 000
500 000
\nZhigang Hao
\n1)
\nChair
-
-
-
-
\nDag Jakob Opedal
Vice chair
40 000
-
40 000
-
\nOlivier de Clermont-Tonnerre
\n1)
\nBoard member
15 517
-
15 517
-
\nYougen Ge
\n1)
\nBoard member
-
-
-
-
\nMarianne Johnsen
Board member
-
-
15 000
-
\nGrace Tang
Board member
-
-
-
-
\nNathalie Brunelle (from May)
Board member
-
-
-
-
\nJin Wang Johnny Wu (from May)
\n1)
\nBoard member
-
-
-
-
\nTerje Andre Hanssen
Board member (employee representative)
-
-
-
-
\nMarianne F\u00e6r\u00f8yvik
Board member (employee representative)
4 950
-
4 950
-
\nThomas Eggan (from July)
Board member (employee representative)
-
-
-
\nHeidi Feldborg
Observer (employee representative)
-
-
-
-
\nJan Harald Karlsen (from July)
Observer (employee representative)
-
-
-
\nAnja Isabel Dotzenrath (until Apr)
Board member
-
-
-
-
\nKnut Sande (until June)
Board member (employee representative)
-
-
-
-
\nPer Roar Aas (until June)
Observer (employee representative)
-
-
-
-
\n1)
\nRepresentatives for the majority shareholder.
\nEmployee bene\ufb01t assets and obligations
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nPension plan assets, net
\nPension contribution fund (note 22)
\nEmployee prepayments etc.
\nTotal employee bene\ufb01t assets
\n40
\n1
\n-
\n41
\n-
\n1
\n-
\n1
\n-
\n2
\n5
\n7
\n-
\n2
\n8
\n10
\nSalaries, holiday pay and variable compensation
\nEmployer's national insurance contributions / social security
\nPension plan obligations, net
\nOther bene\ufb01t plans
\nTotal employee bene\ufb01t obligations
\ntax
\n-
\n-
\n370
\n119
\n489
\n-
\n-
\n492
\n119
\n611
\n752
\n226
\n-
\n16
\n994
\n761
\n203
\n-
\n12
\n976
\n(a) Salaries, holiday pay and variable compensation
\nThe obligations are related to incurred employee bene\ufb01ts,
\nnot paid.
\nA pro\ufb01t-sharing plan is applicable for French entities with
\nmore than 50 employees, where the bonus liability must be
\ncalculated based on pro\ufb01t after tax, using a speci\ufb01c formula
\ngiven by the authorities. As at 31 December 2022 EUR 2 million
\n(EUR 0 million) is accrued related to the agreement.
\n(b) Pension plans
\nThe group has both de\ufb01ned contribution and de\ufb01ned bene\ufb01t
\nplans. For de\ufb01ned contribution plans the cost is equal to the
\ngroup's contribution to the employee's pension savings during
\nthe period. For de\ufb01ned bene\ufb01t plans the cost is calculated
\nbased on actuarial valuation methods, taking assumptions
\nrelated to the employee's salary, turnover, mortality, discount
\nrate, etc. into consideration.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans are the main pension plan for Elkem's
\nNorwegian entities, where the contribution to each individual
\npension plan is 5% of annual salary up to 7.1G and 15% of annual
\nsalary between 7.1-12G. 1G refers to the Norwegian national
\ninsurance scheme's basic amount, which is NOK 111 477 as at
\n1 May 2022. Pension on salary above 12G is not supported by
\nexternal service providers and is therefore handled as a separate
\nplan and included under de\ufb01ned bene\ufb01t plans.
\nIn addition, a Norwegian multi-employer early retirement
\nscheme called AFP, where su\ufb03cient information to calculate
\neach participant's pension obligation is not available, is
\naccounted for as it is a de\ufb01ned contribution plan in accordance
\nwith the Ministry of Finance's conclusion. The participants in the
\npension plan are jointly responsible for 2/3 of the plan's pension
\nobligation, the government is responsible for the remaining part.
\nThe pension premium in 2022 is 2.6% of the employees' salary
\nbetween 1 and 7.1G, covering this year's pension payments and
\ncontribution to a security fund for future pension obligations.
\nThe yearly premium for 2023 is set to 2.6%.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where the group is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. The group has funded and
\nunfunded bene\ufb01t plans in Norway, France, Germany, UK,
\nCanada, Japan and South Africa. The pension scheme in UK
\nand two of Canada's schemes are overfunded and are net in an
\nasset position. The schemes that are underfunded and are net
\nin a liability position as at 31 December 2022 are distributed as
\nfollows Norway 23%, France 51%, Canada 9%, other Europe
\n14%, other countries 3%. In Canada provisions are also made
\nfor medical insurance as well as pension bene\ufb01t plans.
\nThe Norwegian pension plans are unfunded and comprise
\npension on salaries above 12G, where the expense is 15%
\nof annual base salary that exceeds 12G plus interest on the
\nindividual calculated pension obligation, and some individual
\nretirement schemes that are closed.
\nBreakdown of net pension expenses
\nAmounts in NOK million
2022
2021
\nCurrent service expenses
(43)
(40)
\nAdministration expenses
(1)
(1)
\nNet pension expenses, de\ufb01ned bene\ufb01t plans
(45)
(40)
\nDe\ufb01ned contribution plans
(102)
(78)
\nEarly retirement scheme AFP (Norway)
(21)
(18)
\nTotal pension expenses
(168)
(137)
\nIn addition, interest expenses on net
(9)
(8)
\npension liabilities are recognised as a
\npart of \ufb01nance expenses
\nNet de\ufb01ned bene\ufb01t obligations
\nAmounts in NOK million
2022
2021
\nPresent value of funded pension obligations
(384)
(509)
\nFair value of plan assets
425
487
\nNet funded pension obligations
40
(22)
\nPresent value of unfunded pension obligations
(370)
(470)
\nNet value of funded and unfunded obligations
(329)
(492)
Movements in the de\ufb01ned bene\ufb01t obligations and plan assets
\n2022
2021
\nDe\ufb01ned
De\ufb01ned
Net
De\ufb01ned
De\ufb01ned
Net
\nbene\ufb01t bene\ufb01t plan pension plan
bene\ufb01t
bene\ufb01t plan
pension plan
\nAmounts in NOK million
obligations
assets
obligations
obligations
assets
obligations
\nOpening balance
(978)
487
(492)
(1 014)
460
(554)
\nCurrent service expenses
(43)
-
(43)
(40)
-
(40)
\nInterest (expenses) income
(22)
13
(9)
(18)
10
(8)
\nAdministration expenses
-
(1)
(1)
-
(1)
(1)
\nRemeasurement gains (losses)
237
(91)
146
59
9
69
\nContributions from employer
-
32
32
-
15
15
\nBene\ufb01ts paid
85
(33)
52
40
(23)
17
\nOther changes
3
-
3
-
-
-
\nCurrency translation di\ufb00erences
(36)
18
(19)
(5)
16
10
\nClosing balance
(754)
425
(329)
(978)
487
(492)
\nBreakdown of pension plan assets
31.12.2022
31.12.2021
\nAmounts in NOK million
\nFair value of
\nDistribution%
plan assets
\nFair value of
\nDistribution%
plan assets
\nCash, cash equivalents and money market investments
\nBonds
\nShares
\nProperty
\nOther plan assets
\n1)
\nTotal pension plan assets
\n12 %
\n15 %
\n36 %
\n35 %
\n3 %
\n100 %
\n52
\n62
\n152
\n147
\n12
\n425
\n11 %
\n19 %
\n38 %
\n30 %
\n1 %
\n100 %
\n55
\n95
\n185
\n148
\n4
\n487
\n1)
\nIncludes insurance contracts (Buy in policies and Annuity insured contracts)
\nActual return on plan assets
-16.0 %
(78)
4.3 %
20
\nIn addition, some Norwegian entities have pension
\ncontribution funds, mainly based on excess pension assets
\nfrom settlement of the de\ufb01ned bene\ufb01t plans in 2010. The
\npension contribution funds are classi\ufb01ed as non-current
\npension funds, except next year's expected contributions
\nwhich are classi\ufb01ed as current (see note 22 Other assets)
\nPrincipal assumptions used for the actuarial valuations in
\n2022 (2021)
\nNorway
France
Canada
Germany
UK
\nDiscount rate
4.2%
(2.0%)
3.0%
(0.9%)
5.0%
(3.0%)
3.9%
(1.0%)
5.1%
(1.6%)
\nExpected rate of salary increase
na
(na)
3.0%
(2.1%)
3.5%
(3.5%)
3.0%
(3.0%)
na
(na)
\nAnnual regulation of pensions paid
1.9%
(1.5%)
na
(na)
na
(na)
2.0%
(2.0%)
na
(na)
\nAssumptions regarding future mortality are based on actuarial
\nadvice in accordance with published statistics and experience
\nin each country.
\nSensitivity on pension obligations based on changes in main
\nactuarial assumptions
\nThe de\ufb01ned bene\ufb01t pension schemes expose the group to
\nactuarial risk such as investment risk, interest rate risk, salary
\ngrowth risk, mortality risk and longevity risk.
\nA decrease in corporate bond yields, a rise in in\ufb02ation or
\nan increase in life expectancy would result in an increase
\nto plan liabilities.
\nThe sensitivity analysis below shows estimated e\ufb00ects in the
\nde\ufb01ned pension obligation based on reasonable changes in
\nthe main assumptions.
\nThe calculations are based on a change in one assumption while
\nholding all other assumptions constant. Negative amounts show
\nan expected decrease in the net pension liability.
\nAssumption
\nDiscount rate
Life expectancy
Salary growth
\n0.5%
0.5%
1 year
1 year
0.5%
0.5%
\nAmounts in NOK million
increase
decrease
increase
decrease
increase
decrease
\n2022: E\ufb00ect on the pension obligation
(38)
42
14
(15)
10
(10)
\n2021: E\ufb00ect on the pension obligation
(63)
71
25
(25)
24
(22)
\nAs the group's main pension plans are de\ufb01ned contribution
\nplans, there are no group policies for funding of the de\ufb01ned
\nbene\ufb01t plans. This is managed locally, based on the terms
\nand status for the individual plan.
Expected contribution for the pension plans next year and (c) Other bene\ufb01t plans
\nOther employee bene\ufb01ts consist of provisions related to jubilee
\nand long-service bene\ufb01ts, and post-employment bene\ufb01ts to
\nbe paid until ordinary retirement age for former employees in
\nElkem\u2019s Chinese entities.
\nOf total non-current provisions, NOK 64 million (NOK 74
\nmillion) relate to jubilee and long-service bene\ufb01ts in the
\nSilicones segment, mainly in France. Estimated duration of
\nthe obligation is 13 years. Non-current provisions for other
\nemployee bene\ufb01ts for Elkem\u2019s Chinese entities, in the Silicones
\nsegment, are calculated to NOK 35 million (NOK 30 million),
\nmainly consisting of post-employment bene\ufb01ts related to
\nemployees laid o\ufb00 due to reorganisation. No further obligations
\nare expected to incur however in 2022 an addition of NOK 13
\nmillion has incurred related to update of estimate for future
\nhealth insurance premiums. The estimated remaining duration
\nfor these two obligations is 16 years.
11. Other operating expenses Details of operating expenses
\nAmounts in NOK million
2022
2021
\nLoss on disposal of \ufb01xed assets
(2)
(5)
\nFreight and commission expenses
(2 395)
(1 661)
\nLeasing short-term and low value contracts (note 16)
(70)
(56)
\nMachinery, equipment, spare parts and operating materials
(1 344)
(1 336)
\nExternal services
\n1)
\n(2 441)
(2 051)
\nInsurance expenses
(137)
(106)
\nImpairment losses trade and other receivables
(2)
9
\nOther operating expenses
\n2) 3)
\n(324)
(330)
\nTotal other operating expenses
(6 714)
(5 536)
\n1)
\nIncluding services from auditor, see speci\ufb01cation below
\n2)
\nIncluding changes in inventories of \ufb01nished goods and work in progress of positive NOK 288 million (positive NOK 1 million)
\n3)
\nIncluding capitalised salary on \ufb01xed asset projects of positive NOK 125 million (positive NOK 114 million)
\nResearch and development
\nDuring 2022, Elkem expensed NOK 1,000 million (NOK 716
\nmillion) related to research and innovation activities, which
\nincludes product and business development, technical
\ncustomer support and improvement projects. In addition,
\nElkem capitalised development expenses of NOK 312 million
\n(NOK 300 million).
\nGrants relating to research and development amount to NOK
\n143 million (NOK 132 million) and are recognised in other
\noperating income. In addition NOK 91 million (NOK 15 million)
\nis recognised as a reduction of intangible assets.
\nAudit fees
\nKPMG is the group auditor of Elkem.
\nFees to KPMG and other audit \ufb01rms
\nAmounts in NOK million
2022
2021
\nKPMG
\nAudit fee
(19)
(19)
\nOther assurance services
(1)
(1)
\nTax services
-
(0)
\nOther services
-
-
\nOther audit \ufb01rms
\nAudit fee
(2)
(2)
\nOther assurance services
(0)
(0)
\nTax services
(2)
(1)
\nOther services
(0)
(1)
\nTotal fees to KPMG and other audit \ufb01rms
(25)
(24)
Fees to auditors are reported exclusive of VAT. 15. Property, plant and equipment Judgements and estimates
\nEstimated useful lives, residual values (if any) included
\nin calculation of depreciation of PPE are reviewed and, if
\nnecessary, adjusted at least annually.
\nDetails of property, plant and equipment
\n2022
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposal of subsidiaries (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n217
\n1
\n2
\n-
\n1
\n-
\n(0)
\n13
\n8 064
\n13
\n475
\n1
\n185
\n-
\n(10)
\n229
\n23 043
\n34
\n1 271
\n1
\n749
\n-
\n(384)
\n691
\n866
\n5
\n181
\n(6)
\n0
\n-
\n(9)
\n40
\n2 819
\n4 091
\n(1 929)
\n(40)
\n7
\n(29)
\n(12)
\n116
\n35 009
\n4 143
\n-
\n(43)
\n942
\n(29)
\n(415)
\n1 088
\nClosing balance
233
8 957
25 406
1 078
5 022
40 696
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 999)
\n(263)
\n0
\n8
\n(68)
\n(13 085)
\n(1 293)
\n(1)
\n306
\n(365)
\n(430)
\n(137)
\n1
\n6
\n(20)
\n(16 514)
\n(1 693)
\n0
\n321
\n(453)
\nClosing balance
(3 322)
(14 437)
(580)
(18 339)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n(1)
\n(419)
\n(10)
\n6
\n0
\n(13)
\n(2 315)
\n(13)
\n(6)
\n44
\n(68)
\n(1)
\n(0)
\n(0)
\n0
\n(0)
\n(28)
\n(5)
\n-
\n4
\n(1)
\n(2 774)
\n(28)
\n(0)
\n48
\n(82)
\nClosing balance
(11)
(435)
(2 358)
(1)
(30)
(2 836)
\nCarrying amount
\nClosing balance
222
5 200
8 610
497
4 991
19 520
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n2 738
\n5\u201350 years
\nStraight-line
\n6 592
\n3\u201350 years
\nStraight-line
\n252
\n3\u201320 years
\nStraight-line
\n-
9 583
\nCapitalised interest is NOK 20 million in 2022. The weighted
\naverage cost of capital for capitalisation of loan interest in
\n2022 is in the range of 2.5% and 3.7% per annum.
Details of property, plant and equipment
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n184
\n17
\n21
\n-
\n-
\n(0)
\n(5)
\n7 474
\n55
\n344
\n7
\n-
\n(21)
\n205
\n21 720
\n67
\n1 122
\n1
\n-
\n(290)
\n423
\n582
\n132
\n186
\n(14)
\n-
\n(12)
\n(8)
\n1 799
\n2 762
\n(1 674)
\n(105)
\n-
\n(6)
\n42
\n31 759
\n3 033
\n-
\n(110)
\n-
\n(328)
\n656
\nClosing balance
217
8 064
23 043
866
2 819
35 009
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 738)
\n(236)
\n(6)
\n17
\n(37)
\n(11 929)
\n(1 211)
\n(2)
\n228
\n(171)
\n(377)
\n(76)
\n9
\n10
\n4
\n(15 043)
\n(1 523)
\n1
\n255
\n(203)
\nClosing balance
(2 999)
(13 085)
(430)
(16 514)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n0
\n(384)
\n(9)
\n-
\n0
\n(25)
\n(2 162)
\n(54)
\n(0)
\n35
\n(134)
\n(0)
\n(1)
\n0
\n0
\n(0)
\n(26)
\n(3)
\n-
\n2
\n(2)
\n(2 584)
\n(67)
\n-
\n38
\n(160)
\nClosing balance
(11)
(419)
(2 315)
(1)
(28)
(2 774)
\nCarrying amount
\nClosing balance
206
4 646
7 644
435
2 790
15 722
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n1 368
\n5\u201350 years
\nStraight-line
\n6 455
\n3\u201350 years
\nStraight-line
\n126
\n3\u201320 years
\nStraight-line
\n-
7 950
\nCapitalised interest is NOK 5 million in 2021. The weighted
\naverage cost of capital for capitalisation of loan interest in 2021
\nis in the range of 2.5% and 3.1% per annum.
\nElkem has decided to transfer the production at Elkem Carbon
\nMalaysia to other Elkem Carbon Solutions production sites.
\nAn impairment loss of NOK 60 million was recognised in
\n2021 due to the transfer, of which NOK 55 million is related
\nto impairment of property, plant and equipment and NOK
\n5 million to right-of-use assets. The impairment loss of PPE
\nis mainly related to plant, machinery, equipment and motor
\nvehicles and buildings and other property.
16. Leases Judgements and estimates
\nThe lease term is determined as the non-cancellable period
\nof a lease, together with any periods covered by an option
\nto extend the lease if Elkem is reasonably certain to exercise
\nthat option and any periods covered by an option to terminate
\nthe lease if the lessee is reasonably certain not to exercise
\nthat option. Elkem's main renewal options relate to lease
\nof buildings for o\ufb03ce and production purpose, included in
\nPlant, buildings and other property, and lease of land and it is
\nreasonably certain that the renewal option will be used. Elkem
\nreassesses the lease term if there is a signi\ufb01cant event or
\nchange in circumstances that is within its control and a\ufb00ects
\nits ability to exercise, or not to exercise, the option to renew.
Details of right-of-use assets
\n2022
\nBuildings
Plant, machinery,
\nand other
equipment and
O\ufb03ce and other
\nAmounts in NOK million
Land
property
motor vehicles
equipment
Total
\nCost
\nOpening balance
432
730
138
11
1 310
\nAdditions / lease modi\ufb01cations / remeasurements
4
105
21
0
131
\nDisposal of subsidiaries (note 4)
(118)
(145)
-
-
(264)
\nPartial or full termination of agreements
(0)
(46)
(15)
(9)
(71)
\nCurrency translation di\ufb00erences
9
15
7
1
31
\nClosing balance
326
659
150
2
1 138
\nAccumulated depreciation
\nOpening balance
(66)
(143)
(75)
(5)
(288)
\nAdditions
(8)
(79)
(32)
(1)
(119)
\nDisposal of subsidiaries (note 4)
8
10
-
-
18
\nReclassi\ufb01cation
(3)
(7)
-
-
(10)
\nPartial or full termination of agreements
0
32
15
5
53
\nCurrency translation di\ufb00erences
(2)
(6)
(4)
(0)
(12)
\nClosing balance
(70)
(191)
(96)
(1)
(359)
\nImpairment losses
\nOpening balance
-
(1)
-
(4)
(5)
\nDisposals
-
1
-
4
5
\nCurrency translation di\ufb00erences
-
(0)
-
(0)
(0)
\nClosing balance
-
(0)
-
-
0
\nCarrying amount
\nClosing balance
256
468
55
1
779
\nEstimated useful life
8\u201399 years
2\u201325 years
2\u20136 years
3-4 years
\nDepreciation plan
Straight-line
Straight-line
Straight-line
Straight-line
\nDetails of right-of-use assets
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant, machinery,
\nequipment and
\nmotor vehicles
\nO\ufb03ce and other
\nequipment
Total
\nCost
\nOpening balance
\nAdditions / lease modi\ufb01cations / remeasurements
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n415
\n0
\n(0)
\n-
\n17
\n529
\n239
\n0
\n(41)
\n2
\n134
\n18
\n0
\n(10)
\n(5)
\n10
\n2
\n(1)
\n-
\n(0)
\n1 087
\n260
\n-
\n(51)
\n14
\nClosing balance
432
730
138
11
1 310
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n(51)
\n(4)
\n(7)
\n-
\n(3)
\n(105)
\n(77)
\n(0)
\n40
\n(1)
\n(53)
\n(34)
\n0
\n9
\n2
\n(3)
\n(2)
\n0
\n-
\n0
\n(212)
\n(116)
\n(7)
\n49
\n(2)
\nClosing balance
(66)
(143)
(75)
(5)
(288)
\nImpairment losses
\nOpening balance
\nAdditions
\nCurrency translation di\ufb00erences
\n-
\n-
\n-
\n-
\n(1)
\n(0)
\n-
\n-
\n-
\n-
\n(4)
\n(0)
\n-
\n(5)
\n(0)
\nClosing balance
-
(1)
-
(4)
(5)
\nCarrying amount
\nClosing balance
366
586
62
2
1 017
\nEstimated useful life
\nDepreciation plan
\n1\u201399 years
\nStraight-line
\n1\u201325 years
\nStraight-line
\n2\u20135 years
\nStraight-line
\n3-6 years
\nStraight-line
\nCarrying amounts of lease liabilities and the movements during the period
\nAmounts in NOK million
2022
2021
\nOpening balance
801
663
\nAdditions / lease modi\ufb01cations / remeasurements
124
260
\nPartial or full termination of agreements
(6)
(2)
\nDisposal of subsidiaries
(238)
-
\nPayments
(146)
(144)
\nInterest expenses on lease liabilities
30
26
\nCurrency translation di\ufb00erences
13
(2)
\nClosing balance (note 23)
578
801
\nThe maturity analysis of lease liabilities is disclosed in note 23
\nInterest-bearing assets and liabilities
Amounts recognised in consolidated statement of pro\ufb01t or loss
\nAmounts in NOK million
2022
2021
\nDepreciation of right-of-use assets
(119)
(116)
\nInterest expenses on lease liabilities (note 13)
(30)
(26)
\nLeasing expenses, short-term leases (note 11)
(56)
(44)
\nLeasing expenses, low value assets (note 11)
(13)
(11)
\nLeasing expenses, variable lease payments (note 11)
(2)
(2)
\nTotal amount recognised in consolidated statement of pro\ufb01t or loss
(219)
(199)
17. Other intangible assets Judgements and estimates
\nEstimated useful lives are used in calculation of amortisation
\nof intangible assets, these are reviewed, and if necessary
\nadjusted, at least annually.
\nDetails of intangible assets
\n2022
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n103
\n-
\n828
\n-
\n567
\n24
\n775
\n1
\n335
\n0
\n568
\n310
\n3 175
\n335
\nTransferred from CiP
-
-
5
58
-
(63)
-
\nReclassi\ufb01cation
-
3
43
-
(1)
7
53
\nBusiness combinations (note 4)
-
0
-
-
6
-
6
\nDisposal of subsidiaries (note 4)
-
-
-
-
-
(460)
(460)
\nDisposals
-
-
(30)
-
-
(3)
(33)
\nCurrency translation di\ufb00erences
5
36
18
46
11
18
134
\nClosing balance
108
868
627
880
350
377
3 209
\nAccumulated amortisation
\nOpening balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nAdditions
(2)
(41)
(54)
(57)
(33)
(186)
\nReclassi\ufb01cation
-
-
(1)
-
1
(0)
\nDisposals
-
-
8
-
-
8
\nCurrency translation di\ufb00erences
(3)
(26)
(12)
(30)
(3)
(74)
\nClosing balance
(59)
(579)
(457)
(606)
(122)
(1 824)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nCurrency translation di\ufb00erences
(0)
-
-
-
-
-
(0)
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
48
288
170
273
228
377
1 385
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2022 consists mainly of capitalisation of development projects of NOK 312 million of which NOK 230 million is related to Elkem's
\nbiocarbon initiative and battery projects.
Details of intangible assets
\n2021
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n108
\n-
\n836
\n1
\n469
\n16
\n714
\n-
\n322
\n-
\n305
\n324
\n2 753
\n342
\nTransferred from CiP
-
2
6
80
-
(87)
-
\nReclassi\ufb01cation
-
8
81
-
-
29
118
\nBusiness combinations (note 4)
-
-
-
-
-
-
-
\nDisposals
-
-
(9)
-
(0)
-
(9)
\nCurrency translation di\ufb00erences
(5)
(19)
4
(19)
12
(2)
(28)
\nClosing balance
103
828
567
775
335
568
3 175
\nAccumulated amortisation
\nOpening balance
(56)
(487)
(349)
(486)
(55)
(1 433)
\nAdditions
(1)
(41)
(50)
(53)
(31)
(177)
\nReclassi\ufb01cation
-
-
(1)
-
-
(1)
\nDisposals
-
-
5
-
0
5
\nCurrency translation di\ufb00erences
3
15
(3)
21
(1)
35
\nClosing balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nAdditions
-
-
(4)
-
-
-
(4)
\nDisposals
-
-
4
-
-
-
4
\nCurrency translation di\ufb00erences
0
-
-
-
-
-
0
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
47
315
169
256
248
568
1 602
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2021 consists mainly of capitalisation of development projects of NOK 300 million of which NOK 228 million is related to Elkem's
\nbiocarbon initiative and battery projects.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14719": {
"value": "Principle Employee bene\ufb01ts
\nEmployee bene\ufb01ts are all forms of considerations given by an
\nentity in exchange for service rendered by employees or for
\ntermination of employment.
\nEmployee bene\ufb01ts include both current and non-current
\nbene\ufb01ts, and are expensed as incurred, together with any
\nsocial security taxes applicable.
\nCurrent bene\ufb01ts consist of wages and salaries, bonuses,
\nholiday payments and other short-term bene\ufb01ts that are
\nexpected to be settled within 12 months after the reporting
\nperiod. Non-current bene\ufb01ts consist mainly of jubilee and
\nlong-service bene\ufb01ts, post-employment bene\ufb01ts and post-
\nretirement bene\ufb01ts, not expected to be wholly settled within
\nthe next 12 months.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans comprise of arrangements whereby
\nthe company makes monthly contributions to the employees'
\npension plans, and where the future pensions are determined by
\nthe amount of the contributions and the return on the individual
\npension plan asset. The contributions are expensed as incurred
\nand there is no further obligation related to the contribution
\nplans. Prepaid contributions are recognised as an asset.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where Elkem is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. De\ufb01ned bene\ufb01t plans are
\nrecognised at present value of future liabilities considered
\nretained at the end of the reporting period, calculated
\nseparately for each plan. Plan assets are measured at fair
\nvalue and deducted in calculating the net pension obligation.
\nPension plans with a net asset and no o\ufb00setting rights are
\npresented as a part of other assets. Actuarial assumptions
\nare used to measure both the obligation and the expense and
\ne\ufb00ects of changes in estimates due to \ufb01nancial and actuarial
\nassumptions are recognised as other comprehensive income.
\nPast service costs arising due to amendments in bene\ufb01t plans
\nare expensed as incurred. Service costs are recognised as
\npart of employee bene\ufb01t expenses. Net interest is calculated
\nbased on net pension obligations at the start of the period,
\nmultiplied by the discount rate. Any di\ufb00erence between actual
\nreturn on pension assets and the interest income calculated
\nas a part of the net interest, will be recognised directly in other
\ncomprehensive income. Interest on net pension obligations are
\npresented as a part of \ufb01nance expenses.
\nMulti-employer de\ufb01ned bene\ufb01t plans where available
\ninformation is insu\ufb03cient to be able to calculate each
\nparticipant's obligation, are accounted for as contribution plans. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14806": {
"value": "Average number of full-time equivalents 7 592
7 178",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f14812": {
"value": "Remuneration to corporate management Amounts in NOK million
2022
2021
\nFixed compensation
(33)
(31)
\nVariable compensation - STI
(20)
(29)
\nVariable compensation - LTI
(31)
(9)
\nOther bene\ufb01ts
(2)
(1)
\nPension bene\ufb01ts
(4)
(4)
\nTotal remuneration to corporate management
(90)
(75)
\nRemuneration provided to the board of directors
(5)
(5)
\nRemuneration provided to the committee remuneration
(1)
(0)
\nFor more details on the remuneration to corporate
\nmanagement see \"Report on salary and other remuneration to
\nleading personnel in Elkem ASA for the \ufb01nancial year 2022\".
\nThe report is published on Elkem's website.
\u2197
Shares and options granted to corporate management and
\nboard members
\n2022
2021
\nNumber
Number of
Number
Number of
\nName
Position
of shares
options
of shares
options
\nHelge Aasen
CEO
46 206
101 000
46 206
101 000
\nMorten Viga
CFO
46 896
408 380
46 896
800 000
\nKatja Lehland
SVP Human Resources
-
400 000
-
800 000
\nAsbj\u00f8rn S\u00f8vik
SVP Green Ventures & Digital
10 000
400 000
10 000
900 000
\nH\u00e5vard Moe
SVP Elkem Technology
110 000
600 000
60 000
900 000
\nLouis Vovelle
SVP Innovation R&D
6 896
425 140
6 896
800 000
\nFr\u00e9d\u00e9ric Jacquin
SVP Business development
81 551
408 380
6 551
850 000
\nInge Grubben-Str\u00f8mnes
SVP Silicon Products
35 189
676 526
35 189
900 000
\nLuiz Simao
SVP Carbon Solutions
20 000
350 000
10 000
650 000
\nLarry Zhang
SVP Silicones
-
250 000
500 000
\nZhigang Hao
\n1)
\nChair
-
-
-
-
\nDag Jakob Opedal
Vice chair
40 000
-
40 000
-
\nOlivier de Clermont-Tonnerre
\n1)
\nBoard member
15 517
-
15 517
-
\nYougen Ge
\n1)
\nBoard member
-
-
-
-
\nMarianne Johnsen
Board member
-
-
15 000
-
\nGrace Tang
Board member
-
-
-
-
\nNathalie Brunelle (from May)
Board member
-
-
-
-
\nJin Wang Johnny Wu (from May)
\n1)
\nBoard member
-
-
-
-
\nTerje Andre Hanssen
Board member (employee representative)
-
-
-
-
\nMarianne F\u00e6r\u00f8yvik
Board member (employee representative)
4 950
-
4 950
-
\nThomas Eggan (from July)
Board member (employee representative)
-
-
-
\nHeidi Feldborg
Observer (employee representative)
-
-
-
-
\nJan Harald Karlsen (from July)
Observer (employee representative)
-
-
-
\nAnja Isabel Dotzenrath (until Apr)
Board member
-
-
-
-
\nKnut Sande (until June)
Board member (employee representative)
-
-
-
-
\nPer Roar Aas (until June)
Observer (employee representative)
-
-
-
-
\n1)
\nRepresentatives for the majority shareholder. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15097": {
"value": "(b) Pension plans The group has both de\ufb01ned contribution and de\ufb01ned bene\ufb01t
\nplans. For de\ufb01ned contribution plans the cost is equal to the
\ngroup's contribution to the employee's pension savings during
\nthe period. For de\ufb01ned bene\ufb01t plans the cost is calculated
\nbased on actuarial valuation methods, taking assumptions
\nrelated to the employee's salary, turnover, mortality, discount
\nrate, etc. into consideration.
\nDe\ufb01ned contribution plans
\nDe\ufb01ned contribution plans are the main pension plan for Elkem's
\nNorwegian entities, where the contribution to each individual
\npension plan is 5% of annual salary up to 7.1G and 15% of annual
\nsalary between 7.1-12G. 1G refers to the Norwegian national
\ninsurance scheme's basic amount, which is NOK 111 477 as at
\n1 May 2022. Pension on salary above 12G is not supported by
\nexternal service providers and is therefore handled as a separate
\nplan and included under de\ufb01ned bene\ufb01t plans.
\nIn addition, a Norwegian multi-employer early retirement
\nscheme called AFP, where su\ufb03cient information to calculate
\neach participant's pension obligation is not available, is
\naccounted for as it is a de\ufb01ned contribution plan in accordance
\nwith the Ministry of Finance's conclusion. The participants in the
\npension plan are jointly responsible for 2/3 of the plan's pension
\nobligation, the government is responsible for the remaining part.
\nThe pension premium in 2022 is 2.6% of the employees' salary
\nbetween 1 and 7.1G, covering this year's pension payments and
\ncontribution to a security fund for future pension obligations.
\nThe yearly premium for 2023 is set to 2.6%.
\nDe\ufb01ned bene\ufb01t plans
\nDe\ufb01ned bene\ufb01t plans are pension plans where the group is
\nresponsible for paying pensions at a certain level, based on
\nemployees' salaries when retiring. The group has funded and
\nunfunded bene\ufb01t plans in Norway, France, Germany, UK,
\nCanada, Japan and South Africa. The pension scheme in UK
\nand two of Canada's schemes are overfunded and are net in an
\nasset position. The schemes that are underfunded and are net
\nin a liability position as at 31 December 2022 are distributed as
\nfollows Norway 23%, France 51%, Canada 9%, other Europe
\n14%, other countries 3%. In Canada provisions are also made
\nfor medical insurance as well as pension bene\ufb01t plans.
\nThe Norwegian pension plans are unfunded and comprise
\npension on salaries above 12G, where the expense is 15%
\nof annual base salary that exceeds 12G plus interest on the
\nindividual calculated pension obligation, and some individual
\nretirement schemes that are closed.
\nBreakdown of net pension expenses
\nAmounts in NOK million
2022
2021
\nCurrent service expenses
(43)
(40)
\nAdministration expenses
(1)
(1)
\nNet pension expenses, de\ufb01ned bene\ufb01t plans
(45)
(40)
\nDe\ufb01ned contribution plans
(102)
(78)
\nEarly retirement scheme AFP (Norway)
(21)
(18)
\nTotal pension expenses
(168)
(137)
\nIn addition, interest expenses on net
(9)
(8)
\npension liabilities are recognised as a
\npart of \ufb01nance expenses
\nNet de\ufb01ned bene\ufb01t obligations
\nAmounts in NOK million
2022
2021
\nPresent value of funded pension obligations
(384)
(509)
\nFair value of plan assets
425
487
\nNet funded pension obligations
40
(22)
\nPresent value of unfunded pension obligations
(370)
(470)
\nNet value of funded and unfunded obligations
(329)
(492)
Movements in the de\ufb01ned bene\ufb01t obligations and plan assets
\n2022
2021
\nDe\ufb01ned
De\ufb01ned
Net
De\ufb01ned
De\ufb01ned
Net
\nbene\ufb01t bene\ufb01t plan pension plan
bene\ufb01t
bene\ufb01t plan
pension plan
\nAmounts in NOK million
obligations
assets
obligations
obligations
assets
obligations
\nOpening balance
(978)
487
(492)
(1 014)
460
(554)
\nCurrent service expenses
(43)
-
(43)
(40)
-
(40)
\nInterest (expenses) income
(22)
13
(9)
(18)
10
(8)
\nAdministration expenses
-
(1)
(1)
-
(1)
(1)
\nRemeasurement gains (losses)
237
(91)
146
59
9
69
\nContributions from employer
-
32
32
-
15
15
\nBene\ufb01ts paid
85
(33)
52
40
(23)
17
\nOther changes
3
-
3
-
-
-
\nCurrency translation di\ufb00erences
(36)
18
(19)
(5)
16
10
\nClosing balance
(754)
425
(329)
(978)
487
(492)
\nBreakdown of pension plan assets
31.12.2022
31.12.2021
\nAmounts in NOK million
\nFair value of
\nDistribution%
plan assets
\nFair value of
\nDistribution%
plan assets
\nCash, cash equivalents and money market investments
\nBonds
\nShares
\nProperty
\nOther plan assets
\n1)
\nTotal pension plan assets
\n12 %
\n15 %
\n36 %
\n35 %
\n3 %
\n100 %
\n52
\n62
\n152
\n147
\n12
\n425
\n11 %
\n19 %
\n38 %
\n30 %
\n1 %
\n100 %
\n55
\n95
\n185
\n148
\n4
\n487
\n1)
\nIncludes insurance contracts (Buy in policies and Annuity insured contracts)
\nActual return on plan assets
-16.0 %
(78)
4.3 %
20
\nIn addition, some Norwegian entities have pension
\ncontribution funds, mainly based on excess pension assets
\nfrom settlement of the de\ufb01ned bene\ufb01t plans in 2010. The
\npension contribution funds are classi\ufb01ed as non-current
\npension funds, except next year's expected contributions
\nwhich are classi\ufb01ed as current (see note 22 Other assets)
\nPrincipal assumptions used for the actuarial valuations in
\n2022 (2021)
\nNorway
France
Canada
Germany
UK
\nDiscount rate
4.2%
(2.0%)
3.0%
(0.9%)
5.0%
(3.0%)
3.9%
(1.0%)
5.1%
(1.6%)
\nExpected rate of salary increase
na
(na)
3.0%
(2.1%)
3.5%
(3.5%)
3.0%
(3.0%)
na
(na)
\nAnnual regulation of pensions paid
1.9%
(1.5%)
na
(na)
na
(na)
2.0%
(2.0%)
na
(na)
\nAssumptions regarding future mortality are based on actuarial
\nadvice in accordance with published statistics and experience
\nin each country.
\nSensitivity on pension obligations based on changes in main
\nactuarial assumptions
\nThe de\ufb01ned bene\ufb01t pension schemes expose the group to
\nactuarial risk such as investment risk, interest rate risk, salary
\ngrowth risk, mortality risk and longevity risk.
\nA decrease in corporate bond yields, a rise in in\ufb02ation or
\nan increase in life expectancy would result in an increase
\nto plan liabilities.
\nThe sensitivity analysis below shows estimated e\ufb00ects in the
\nde\ufb01ned pension obligation based on reasonable changes in
\nthe main assumptions.
\nThe calculations are based on a change in one assumption while
\nholding all other assumptions constant. Negative amounts show
\nan expected decrease in the net pension liability.
\nAssumption
\nDiscount rate
Life expectancy
Salary growth
\n0.5%
0.5%
1 year
1 year
0.5%
0.5%
\nAmounts in NOK million
increase
decrease
increase
decrease
increase
decrease
\n2022: E\ufb00ect on the pension obligation
(38)
42
14
(15)
10
(10)
\n2021: E\ufb00ect on the pension obligation
(63)
71
25
(25)
24
(22)
\nAs the group's main pension plans are de\ufb01ned contribution
\nplans, there are no group policies for funding of the de\ufb01ned
\nbene\ufb01t plans. This is managed locally, based on the terms
\nand status for the individual plan.
\nExpected contribution for the pension plans next year and
\naverage duration for the main de\ufb01ned bene\ufb01t plans
\nAmounts in NOK million
Norway
France
Canada
Germany
UK
\nContribution to be paid to de\ufb01ned pension plans next year
5
18
19
3
5
\nWeighted average duration of the de\ufb01ned bene\ufb01t obligations
6 years
14 years
17 years
11 years
11 years ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15491": {
"value": "10. Share-based paymentJudgements and estimates
\nEstimating fair value for share based payment transactions
\nrequires determination of the most appropriate valuation
\nmodel and assumptions to the valuation model. The fair value
\nat the grant date is determined using the Black-Scholes option
\npricing model, which takes into account the exercise price, the
\nlife of the option, the current price of the underlying shares, the
\nexpected volatility of the share price, any dividends expected
\non the shares and risk-free interest rate for the life of the
\noption. The expected share price volatility is based on historical
\nvolatility for a selection of comparable listed companies
\nadjusted with a premium taking into account the maturity of
\nthe peers compared to the Elkem. The risk-free interest rate is
\nbased on Norwegian government bonds with same maturity as
\nthe option.
\nElkem's share option scheme
\nThe group has in 2018 - 2021 granted share options to
\ncorporate management and selected key employees. Each
\noption gives the right to acquire one share in Elkem ASA
\non exercise. In 2022 the Board decided to terminate the
\noption scheme and replace it with a new Long-term Bonus
\nScheme (LTBS). Please refer to the \"Report on salary and
\nother remuneration to leading personnel in Elkem ASA for the
\n\ufb01nancial year 2022\" for description of the new bonus scheme.
\nThe previous granted options are still exercisable over the
\nexercise period.
\nThe share options vest annually in equal tranches over a three-
\nyear period following the date of grant, with one-third vesting
\neach year. The options will expire two years after vesting, in
\ntotal 5 years after the date of grant. No option holder may in
\nany calendar year realise a total gain on exercise of options
\nin excess of twice the option holder's base salary in the same
\ncalendar year, however provided that the maximum gain for
\nElkem's CEO shall be four times the CEO's base salary. See
\nnote 9 Employee bene\ufb01ts for an overview of options granted to
\nElkem's corporate management.
\nWhen the options are exercised, the corresponding number of
\nshares are transferred to the employee. The proceeds received
\nfrom the exercise of the options (net of any directly attributable
\ntransaction costs) are credited directly to equity.
\nComponents of share-based payments employee bene\ufb01t expenses
\nAmounts in NOK million
\n2022
\n2021
\nShare-based payment
\n(24)
\n(28)
\nSocial security contribution
\n(9)
\n(16)
\nTotal expenses related to share-based payments
\n(33)
\n(44)
\nParameters connected to share options granted in years respectively
\nAmounts in NOK million
\n2021
2020
2019
\nNumber of options granted
\n7 451 000
8 000 000
8 000 000
\nDate of Grant
\n29 Jul 2021
29 Jul 2020
29 Jul 2019
\nExercise price (NOK)
\n31.2
19.1
23.5
\nShare price (NOK)
\n32.9
17.2
24.7
\nExpected lifetime*
\n3.34
3.12
3.12
\nVolatility*
\n34.4 %
46.0 %
35.8 %
\nInterest rate*
\n0.9 %
0.2 %
1.3 %
\nDividend*
\n6.5 %
6.5 %
6.5 %
\nFV per instrument*
\n5.19
2.95
4.08
\nVesting conditions
\nService
Service
Service
\n*Weighted average parameters of instruments
\nOutstanding instruments
\n31 December 2022
31 December 2021
\nNumber of
Number of
\nGrant
instruments
Remaining
instruments
Remaining
\nAmounts in NOK million
Exercise price
outstanding
contractual life
outstanding
contractual life
\n2018 programme
38.52
2 300 000
0.72
4 650 000
1.21
\n2019 programme
23.53
612 688
1.57
2 967 500
2.37
\n2020 programme
19.10
2 945 140
2.38
5 411 272
2.94
\n2021 programme
31.20
5 778 375
2.85
7 451 000
3.58
\nTotal outstanding
11 636 203
2.24
20 479 772
2.70
Quantity and weighted average prices
\n31 December 2022
31 December 2021
\nOverview of outstanding options
\nAmounts in NOK million
\nNumber of
\ninstruments
\nWeighted average
\nexercise price
\nNumber of
\ninstruments
\nWeighted average
\nexercise price
\nOutstanding options 1 January
20 479 772
28.55
\n22 767 000
26.76
\nGranted during the year
-
-
\n7 451 000
31.20
\nExercised during the year
(6 443 569)
23.97
\n(6 271 228)
22.16
\nForfeited during the year
(200 000)
30.01
\n(900 000)
21.16
\nExpired during the year
(2 200 000)
38.52
\n(2 567 000)
38.52
\nOutstanding options 31 December
11 636 203
29.18
\n20 479 772
28.55
\nOf which exercisable (vested)
4 368 870
32.47
\n5 728 772
35.30
\nAverage share price at exercise date (NOK per share)
37.64
34.00
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15494": {
"value": "Principle The fair value of options granted under the share-based
\npayment programme is recognised as an employee bene\ufb01t
\nexpense with a corresponding increase in equity for equity
\nsettled awards. The total amount to be expensed is determined
\nby reference to the fair value of the options granted. The total
\nexpense is recognised over the vesting period, which is the
\nperiod over which all of the speci\ufb01ed vesting conditions are
\nto be satis\ufb01ed. At the end of each period, the entity revises its
\nestimates of the number of options that are expected to vest
\nbased on the non-market vesting and service conditions. It
\nrecognises the impact of the revision to original estimates, if
\nany, in the statement of pro\ufb01t or loss, with a corresponding
\nadjustment to equity.
\nSocial security contributions payable in connection with an
\noption grant are considered an integral part of the grant itself
\nand the charges are treated as cash-settled transactions. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15722": {
"value": "11. Other operating expenses Details of operating expenses
\nAmounts in NOK million
2022
2021
\nLoss on disposal of \ufb01xed assets
(2)
(5)
\nFreight and commission expenses
(2 395)
(1 661)
\nLeasing short-term and low value contracts (note 16)
(70)
(56)
\nMachinery, equipment, spare parts and operating materials
(1 344)
(1 336)
\nExternal services
\n1)
\n(2 441)
(2 051)
\nInsurance expenses
(137)
(106)
\nImpairment losses trade and other receivables
(2)
9
\nOther operating expenses
\n2) 3)
\n(324)
(330)
\nTotal other operating expenses
(6 714)
(5 536)
\n1)
\nIncluding services from auditor, see speci\ufb01cation below
\n2)
\nIncluding changes in inventories of \ufb01nished goods and work in progress of positive NOK 288 million (positive NOK 1 million)
\n3)
\nIncluding capitalised salary on \ufb01xed asset projects of positive NOK 125 million (positive NOK 114 million)
\nResearch and development
\nDuring 2022, Elkem expensed NOK 1,000 million (NOK 716
\nmillion) related to research and innovation activities, which
\nincludes product and business development, technical
\ncustomer support and improvement projects. In addition,
\nElkem capitalised development expenses of NOK 312 million
\n(NOK 300 million).
\nGrants relating to research and development amount to NOK
\n143 million (NOK 132 million) and are recognised in other
\noperating income. In addition NOK 91 million (NOK 15 million)
\nis recognised as a reduction of intangible assets.
\nAudit fees
\nKPMG is the group auditor of Elkem.
\nFees to KPMG and other audit \ufb01rms
\nAmounts in NOK million
2022
2021
\nKPMG
\nAudit fee
(19)
(19)
\nOther assurance services
(1)
(1)
\nTax services
-
(0)
\nOther services
-
-
\nOther audit \ufb01rms
\nAudit fee
(2)
(2)
\nOther assurance services
(0)
(0)
\nTax services
(2)
(1)
\nOther services
(0)
(1)
\nTotal fees to KPMG and other audit \ufb01rms
(25)
(24)
\nFees to auditors are reported exclusive of VAT.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15766": {
"value": "Research and development During 2022, Elkem expensed NOK 1,000 million (NOK 716
\nmillion) related to research and innovation activities, which
\nincludes product and business development, technical
\ncustomer support and improvement projects. In addition,
\nElkem capitalised development expenses of NOK 312 million
\n(NOK 300 million).
\nGrants relating to research and development amount to NOK
\n143 million (NOK 132 million) and are recognised in other
\noperating income. In addition NOK 91 million (NOK 15 million)
\nis recognised as a reduction of intangible assets.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15780": {
"value": "Audit fees KPMG is the group auditor of Elkem.
\nFees to KPMG and other audit \ufb01rms
\nAmounts in NOK million
2022
2021
\nKPMG
\nAudit fee
(19)
(19)
\nOther assurance services
(1)
(1)
\nTax services
-
(0)
\nOther services
-
-
\nOther audit \ufb01rms
\nAudit fee
(2)
(2)
\nOther assurance services
(0)
(0)
\nTax services
(2)
(1)
\nOther services
(0)
(1)
\nTotal fees to KPMG and other audit \ufb01rms
(25)
(24)
Fees to auditors are reported exclusive of VAT. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15823": {
"value": "Principle Other gains (losses)
\nOther gains (losses) consists of changes in fair value of \ufb01nancial
\ninstruments that are not designated as a part of a hedging
\nrelationship, any ine\ufb00ective part of hedging relationships,
\ne\ufb00ects from discontinuation of hedging and foreign exchange
\ngains (losses) related to operating activities such as trade
\nreceivables, trade payables, bank accounts / overdrafts. Foreign
\nexchange gains (losses) related to \ufb01nancing activities, mainly
\ninterest-bearing liabilities and group loans, are classi\ufb01ed as a
\npart of \ufb01nancial income and expenses.
\nOther income (expenses)
\nOther income and (expenses) consists of transactions and
\nevents that are related to acquisition of business, gains /
\n(losses) on disposal of businesses, restructuring programme
\nand pro\ufb01t and loss e\ufb00ects from other shares. In addition,
\nperformance incentives for Elkem employees related to such
\nitems. Cost related to liquidated / wound-up businesses, costs
\nof public requirements or updated regulations related to events
\n/ periods before purchase of the business, e.g., environmental
\nmeasures, are included in other income and expenses.
\nAcquisition related costs may include both costs related to
\nacquisitions done, not completed and cancelled projects.
\nInvestments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares. Dividends from
\nsuch shares are recognised when shareholders' right to receive
\ndividends is determined by the shareholder's meeting. Fair
\nvalue changes in other shares related to listed companies are
\nrecognised as other income (expenses).",
"dimensions": {
"concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15918": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
(ii) Currency risk
\nElkem has revenues and operating costs in various currencies.
\nThe prices of \ufb01nished goods are to a large extent determined
\nin international markets, primarily denominated in US dollar,
\nChinese yuan and Euro. This is partly o\ufb00set by purchases of
\nraw materials denominated in the same currencies. Elkem
\naims to establish natural hedging positions if this is possible
\nand economically viable. Financial derivatives are then used
\nto hedge the remaining net currency risk exposures. Elkem
\nhas net positive operating cash \ufb02ows in mainly Euro, US
\ndollar, Chinese yuan and Brazilian real. Due to the location
\nof its plants, Elkem has net cost positions in certain other
\ncurrencies, mainly Norwegian krone, but also Canadian
\ndollar and Icelandic krona.
\nElkem's policy is to hedge the net positive cash \ufb02ows in
\nforeign currencies against NOK to even out \ufb02uctuations in
\nresult and cash \ufb02ow. The target is to hedge expected net
\ncash \ufb02ow for 0\u20133 months on a 90% hedging ratio. Expected
\nnet cash \ufb02ow for 4\u201312 months should be hedged on a rolling
\nbasis targeting a 45% hedging ratio. The hedging ratio for
\n4\u201312 months may vary subject to internal approval. Chinese
\nyuan (CNY) is not included in the hedging programme. Elkem
\nhas hedged Japanese yen until 2026, related to a long-term
\ncustomer contract. Elkem uses hedge accounting for all cash
\n\ufb02ow hedges over 3 months. Embedded EUR derivatives in
\npower contracts are included in the foreign exchange hedging
\nprogramme. To ensure an e\ufb00ective hedge, according to the
\nhedge accounting principles, the spot element of the forward
\ncurrency contracts is designated as hedging instruments and
\nhighly probable future revenue as hedging object in a hedging
\nrelationship, covering the exposure beyond 3 months.
\nElkem realised a loss of NOK 49 million from hedging
\nprogramme (gain of NOK 92 million).
\nElkem aims to mitigate the currency risk in the statement of
\n\ufb01nancial position by keeping interest-bearing debt in the same
\ncurrencies as the group\u2019s assets. Elkem has mainly interest-
\nbearing debt in Euro, Chinese yuan and Norwegian krone.
\nCurrency e\ufb00ects recognised in total comprehensive income
\nfor the year, excluding e\ufb00ects from cash \ufb02ow hedging
\nAmounts in NOK million
2022
2021
\nNet foreign exchange gains (losses) - forward currency contracts - recognised in other items
9
14
\nOperating foreign exchange gains (losses) - recognised in other items
387
20
\nNet foreign currency exchange gains (losses) on \ufb01nancing activities - recognised in foreign exchange gains (losses)
85
241
\nCurrency translation di\ufb00erences - recognised in other comprehensive income
765
358
\nHedging of net investment in foreign operations - recognised in other comprehensive income
(142)
130
\nTotal
1 104
764
\nCurrency exposure
\nThe amounts in the tables below are translated to NOK using
\nexchange-rates against NOK per 31 December.
\nExchange rates against NOK per 31 December
\n2022
2021
\nUSD
9.8714
8.8242
\nEUR
10.5130
9.9978
\nCNY
1.4309
1.3891
\nCAD
7.2879
6.9449
\nCurrency exposure a\ufb00ecting statement of pro\ufb01t or loss
\nThe tables show carrying amount of assets and liabilities
\ndenominated in foreign currencies di\ufb00erent from the entities
\nfunctional currency, where changes in currency rates will a\ufb00ect
\npro\ufb01t and loss. The tables include notional amount of currency
\nexchange contracts (note 25 Financial assets and liabilities).
\nAmounts are presented in NOK based on currency rates as at
\n31 December.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
662
98
-
-
-
-
759
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 658
3 124
489
(265)
0
459
5 466
\nTotal monetary assets
2 320
3 222
489
(265)
0
459
6 225
\nInterest-bearing liabilities
-
6 505
-
-
-
-
6 505
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
592
232
-
-
-
37
862
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
592
6 738
-
-
-
37
7 367
\nDerivatives, notional value
780
6 033
-
-
-
468
7 281
\nNet currency exposure \ufb01nancial position
948
(9 549)
489
(265)
0
(46)
(8 423)
31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
927
457
-
-
0
98
1 483
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 172
25
80
(95)
0
387
1 570
\nTotal monetary assets
2 100
482
80
(95)
0
485
3 052
\nInterest-bearing liabilities
-
6 773
-
-
-
-
6 773
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
442
117
3
0
2
56
620
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
442
6 890
3
0
2
56
7 393
\nDerivatives, notional value
399
5 598
-
-
-
631
6 629
\nNet currency exposure \ufb01nancial position
1 258
(12 006)
77
(95)
(1)
(202)
(10 969)
\nSensitivity on pro\ufb01t and loss from
\n\ufb01nancial assets and liabilities
\nThe following tables demonstrate the sensitivity to a reasonable
\npossible change in EUR and USD exchange rates by 5%, with
\nall other variables held constant. The impact on Elkem\u2019s pro\ufb01t
\nbefore tax is due to changes in the fair value of monetary
\nassets and liabilities including foreign currency derivatives and
\nembedded derivatives not designated for hedging. The impact
\non Elkem\u2019s pre-tax equity is due to changes in the fair value of
\nforward exchange contracts designated as cash \ufb02ow hedges
\nand net investment hedges. The impact on pre-tax equity
\nwould be booked against OCI and recycled through pro\ufb01t
\nbefore tax, when the hedged items are realised. In addition the
\npro\ufb01t and loss will be a\ufb00ected by translation di\ufb00erences on
\nintra group balances, mainly in EUR, USD and CNY.
\nCurrency
31.12.2022
31.12.2021
\nAmounts in NOK million
\nChange in
\nFX rate
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nEUR
5 %
(46)
(431)
(194)
(410)
\nEUR
-5 %
46
431
194
410
\nUSD
5 %
79
(31)
70
(16)
\nUSD
-5 %
(79)
31
(70)
16
\nCurrency exposure a\ufb00ecting currency
\ntranslation di\ufb00erences / equity
\nThe table shows Elkem's total assets and liabilities
\ndenominated in the group's main currencies translated to NOK
\nat the currency rates at 31 December and gives an overview
\nof the group's total currency exposure that will a\ufb00ect currency
\ntranslation di\ufb00erences both in the consolidated statement of
\ncomprehensive income and / or pro\ufb01t and loss.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
64
399
113
40
67
34
716
\nTrade receivables
1 451
452
1 644
29
3
668
4 248
\nOther assets
64
215
236
32
938
213
1 698
\nRestricted deposits
7
0
400
-
-
1
408
\nCash and cash equivalents
2 017
3 363
2 083
(60)
998
854
9 255
\nTotal monetary assets
3 603
4 429
4 476
41
2 006
1 771
16 325
\nAsset non-monetary items
2 828
5 917
12 311
1 278
12 264
1 858
36 455
\nTotal assets
6 431
10 345
16 787
1 319
14 270
3 628
52 781
\nInterest-bearing liabilities
31
6 620
1 066
-
2 753
66
10 535
\nOther liabilities
25
193
334
36
605
351
1 545
\nTrade payables
778
1 277
2 341
96
630
212
5 335
\nBills payable
-
-
1 742
-
-
-
1 742
\nTotal monetary liabilities
834
8 090
5 485
132
3 988
628
19 158
\nLiabilities non-monetary items
169
694
310
391
3 080
204
4 849
\nTotal liabilities
1 004
8 785
5 794
524
7 069
832
24 007
\n31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
47
285
43
-
72
31
478
\nTrade receivables
1 387
660
1 549
21
184
497
4 297
\nOther assets
20
185
262
12
939
134
1 551
\nRestricted deposits
2
-
604
-
3
-
609
\nCash and cash equivalents
1 438
219
1 448
221
3 066
647
7 040
\nTotal monetary assets
2 894
1 349
3 906
254
4 264
1 308
13 976
\nAsset non-monetary items
1 864
4 878
11 162
837
7 710
1 423
27 874
\nTotal assets
4 758
6 227
15 068
1 092
11 974
2 731
41 850
\nInterest-bearing liabilities
38
6 083
1 144
-
3 038
77
10 380
\nOther liabilities
39
225
469
25
664
235
1 657
\nTrade payables
567
1 049
1 705
95
1 011
186
4 614
\nBills payable
-
-
2 096
-
-
-
2 096
\nTotal monetary liabilities
644
7 357
5 414
121
4 714
498
18 747
\nLiabilities non-monetary items
\nTotal liabilities
\n139
\n782
\n709
\n8 065
\n606
\n6 020
\n188
\n308
\n1 403
\n6 117
\n184
\n683
\n3 228
\n21 976
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15919": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
Capitalised interest is NOK 20 million in 2022. The weighted
\naverage cost of capital for capitalisation of loan interest in
\n2022 is in the range of 2.5% and 3.7% per annum.
Capitalised interest is NOK 5 million in 2021. The weighted
\naverage cost of capital for capitalisation of loan interest in 2021
\nis in the range of 2.5% and 3.1% per annum.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15920": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15921": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15922": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinanceCostExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15923": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15924": {
"value": "13. Finance income and expenses Details of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15925": {
"value": "13. Finance income and expensesDetails of net \ufb01nance income (expenses)
\nAmounts in NOK million
2022
2021
\nInterest income on loans and receivables
65
34
\nOther \ufb01nancial income
1
6
\nTotal \ufb01nance income
67
40
\nNet foreign exchange gains (losses)
\n1)
\n85
241
\nInterest expenses on interest-bearing liabilities measured at amortised cost
(229)
(206)
\nInterest expenses from other items measured at amortised cost
\n2)
\n(50)
(23)
\nCapitalised interest expenses
20
5
\nInterest expenses on lease liabilities (note 16)
(30)
(26)
\nUnwinding of discounted liabilities
(10)
(8)
\nInterest expenses on net pension liabilities (note 9)
(9)
(8)
\nOther \ufb01nancial expenses
(5)
(10)
\nTotal \ufb01nance expenses
(313)
(276)
\nNet \ufb01nance income (expenses)
(161)
6
\n1)
\nSome / part of loans are designated as a hedging instrument, hence the unrealised part of net foreign exchange gains (losses) are recognised
\nagainst OCI, see note 26 Hedging.
\n2)
\nInterest expenses from other items measured at amortised cost mainly consist of interest on bills payable and factoring agreements.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15928": {
"value": "Principle Interest income is recognised on an accrual basis and is
\nclassi\ufb01ed as \ufb01nance income.
\nForeign exchange gains (losses) related to \ufb01nancing activities
\nincluding group loans are classi\ufb01ed as a part of \ufb01nancial
\nincome and expenses, and foreign exchange gains (losses)
\nrelated to operations are classi\ufb01ed as a part of other items.
\nInterest expenses are recognised on an accrual basis using
\nthe e\ufb00ective interest method and are classi\ufb01ed as \ufb01nancial
\nexpenses. Interest is capitalised as a part of the carrying
\namount of a self-constructed item of property, plant and
\nequipment when the construction period takes a substantial
\nperiod of time, meaning more than 9-12 months, depending on
\nthe total amount, and borrowing costs are being incurred.
\nFinancial expenses also include interest on net pension
\nliabilities, unwinding of discounted provisions and contingent
\nconsideration acquisition of subsidiaries, and interest on lease
\nliabilities.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15929": {
"value": "Principle Interest income is recognised on an accrual basis and is
\nclassi\ufb01ed as \ufb01nance income.
\nForeign exchange gains (losses) related to \ufb01nancing activities
\nincluding group loans are classi\ufb01ed as a part of \ufb01nancial
\nincome and expenses, and foreign exchange gains (losses)
\nrelated to operations are classi\ufb01ed as a part of other items.
\nInterest expenses are recognised on an accrual basis using
\nthe e\ufb00ective interest method and are classi\ufb01ed as \ufb01nancial
\nexpenses. Interest is capitalised as a part of the carrying
\namount of a self-constructed item of property, plant and
\nequipment when the construction period takes a substantial
\nperiod of time, meaning more than 9-12 months, depending on
\nthe total amount, and borrowing costs are being incurred.
\nFinancial expenses also include interest on net pension
\nliabilities, unwinding of discounted provisions and contingent
\nconsideration acquisition of subsidiaries, and interest on lease
\nliabilities.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15936": {
"value": "Foreign exchange gains (losses) related to \ufb01nancing activities including group loans are classi\ufb01ed as a part of \ufb01nancial
\nincome and expenses, and foreign exchange gains (losses)
\nrelated to operations are classi\ufb01ed as a part of other items.
Interest expenses are recognised on an accrual basis using
\nthe e\ufb00ective interest method and are classi\ufb01ed as \ufb01nancial
\nexpenses. Interest is capitalised as a part of the carrying
\namount of a self-constructed item of property, plant and
\nequipment when the construction period takes a substantial
\nperiod of time, meaning more than 9-12 months, depending on
\nthe total amount, and borrowing costs are being incurred.
\nFinancial expenses also include interest on net pension
\nliabilities, unwinding of discounted provisions and contingent
\nconsideration acquisition of subsidiaries, and interest on lease
liabilities.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f15943": {
"value": "Interest expenses are recognised on an accrual basis using the e\ufb00ective interest method and are classi\ufb01ed as \ufb01nancial
\nexpenses. Interest is capitalised as a part of the carrying
\namount of a self-constructed item of property, plant and
\nequipment when the construction period takes a substantial
\nperiod of time, meaning more than 9-12 months, depending on
\nthe total amount, and borrowing costs are being incurred.
\nFinancial expenses also include interest on net pension
\nliabilities, unwinding of discounted provisions and contingent
\nconsideration acquisition of subsidiaries, and interest on lease
liabilities.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16018": {
"value": "14. Taxes Judgements and estimates
\nPart of the basis for recognising deferred tax assets is based on
\napplying the loss carried forward against future taxable income
\nin the group, which requires use of estimates for calculating
\nfuture taxable income. Deferred tax assets are not recognised
\nfor start-up projects and entities with longer periods of losses
\nunless there is convincing evidence of recoverability. Elkem
\nrecognises a previously unrecognised deferred tax asset to the
\nextent that it has become probable that future taxable pro\ufb01t will
\nallow the deferred asset to be recovered. For example, when
\nstart up projects becomes pro\ufb01table or the market condition
\nhas changed so the entity has longer periods with historic
\ntaxable pro\ufb01ts and future forecasted taxable pro\ufb01ts. When
\nestimating uncertain tax positions the most probable amount,
\nincluding interests and penalties, is used because in most cases
\nthe outcome of the tax review is binary.
\nIncome tax recognised in pro\ufb01t or loss
\nAmounts in NOK million
\n2022
2021
\nPro\ufb01t (loss) before income tax
\nCurrent taxes
\nDeferred taxes
\nTotal income tax (expense) bene\ufb01t
\n12 236
\n(2 234)
\n(360)
\n(2 594)
\n5 827
\n(1 145)
\n(18)
\n(1 163)
\nIncome taxes recognised in other comprehensive income (OCI)
\nAmounts in NOK million
\n2022
2021
\nRemeasurement of de\ufb01ned bene\ufb01t pension plans
\n(33)
(10)
\nHedging of net investment in foreign operations
\n31
(29)
\nCash \ufb02ow hedges
\n(125)
(153)
\nTotal tax charged to OCI
\n(127)
(192)
\nReconciliation of income tax (expense) bene\ufb01t
\nAmounts in NOK million
2022
2021
\nPro\ufb01t (loss) before income tax
\nExpected income taxes, 22% of pro\ufb01t before tax (22%)
\nTax e\ufb00ects of:
\nDi\ufb00erence in tax rates for each individual jurisdiction
\nPreferential tax rates
\nPermanent di\ufb00erences
\nTax e\ufb00ects of income from Norwegian controlled foreign companies (NOKUS)
\nTax e\ufb00ects share of pro\ufb01t (loss) from equity accounted companies
\nTax e\ufb00ects non-deductible expenses
\nTax relief based on value of equity
\nTax e\ufb00ects gains (losses) on acquisition and disposal of subsidiaries
\nTax e\ufb00ects non-taxable income
\nOther e\ufb00ects
\nTax e\ufb00ects of changes in unrecognised deferred tax assets
\nTax e\ufb00ects of change in tax rate
\nOther current taxes paid
\nPrevious year tax adjustment
\nTotal income tax (expense) bene\ufb01t
\n12 236
\n(2 692)
\n(99)
\n61
\n(16)
\n24
\n(12)
\n19
\n34
\n134
\n(32)
\n-
\n(10)
\n(5)
\n(2 594)
\n5 827
\n(1 282)
\n(94)
\n12
\n(8)
\n19
\n(24)
\n18
\n-
\n76
\n157
\n(19)
\n(35)
\n15
\n(1 163)
\nE\ufb00ective tax rate
21 %
20 %
\nThree companies in China are taxed under the regulations for
\n\"High and new technology company\" which mean that the
\ntax rate is 15% compared to the regular 25%. The companies
\nhave to con\ufb01rm to the authorities every year that they ful\ufb01l the
\nconditions for \"High and new technology company\" in order to
\napply the preferential tax rate.
\nTax e\ufb00ect of non-taxable income is mainly related to R&D,
\nadditional R&D deduction and non-taxable R&D grants, and
\nadditional deduction on investments in \ufb01xed assets equipment.
\nOther current taxes paid relates mainly to taxes that are
\nindirectly calculated based on pro\ufb01t (loss) before income tax
\nand withholding taxes on dividends.
\nDeferred tax assets and deferred tax liabilities
\n31.12.2022
31.12.2021
\nAmounts in NOK million
\nTemporary
\ndi\ufb00erence
Deferred tax
\nTemporary
\ndi\ufb00erence
Deferred tax
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nPension liabilities
\nTrade receivables
\nInventories
\nProvisions
\nOther di\ufb00erences
\nDebt waiver
\nTax losses carried forward
\nGross deferred tax assets
\n-
\n412
\n325
\n92
\n998
\n364
\n458
\n595
\n2 901
\n6 145
\n-
\n69
\n79
\n7
\n222
\n72
\n93
\n161
\n648
\n1 351
\n17
\n795
\n465
\n89
\n639
\n208
\n302
\n595
\n2 353
\n5 463
\n4
\n198
\n121
\n16
\n157
\n53
\n68
\n161
\n582
\n1 359
\nUnrecognised deferred tax assets for tax loss carried forward
\nUnrecognised debt waiver
\nUnrecognised deferred tax assets other items
\n(2 398)
\n(595)
\n(1 264)
\n(520)
\n(161)
\n(190)
\n(1 960)
\n(595)
\n(1 361)
\n(486)
\n(161)
\n(340)
\nRecognised deferred tax assets
1 888
480
1 548
372
\nNetting
(329)
(324)
\nNet deferred tax assets
151
48
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nInventories
\nOther di\ufb00erences
\n2 162
\n3 451
\n284
\n683
\n476
\n775
\n62
\n139
\n560
\n2 734
\n210
\n243
\n123
\n610
\n46
\n50
\nGross deferred tax liabilities
6 580
1 452
3 748
828
\nNetting
(329)
(324)
\nNet deferred tax liabilities
1 123
505
\nNet deferred tax (liabilities) assets recognised
(972)
(457)
\nUnrecognised deferred tax assets other items, are mainly
\nrelated to property, plant and equipment and inventories. The
\ntax assets are not recognised due to uncertainty regarding
\nfuture taxable income and the long period for which the tax
\nasset shall be amortised.
Movements in net deferred tax assets and deferred tax liabilities
\nAmounts in NOK million
2022
2021
\nOpening balance
(457)
(240)
\nRecognised in pro\ufb01t or loss for the year
(360)
(18)
\nE\ufb00ect of business combination
(20)
-
\nDisposal of subsidiaries
2
-
\nRecognised in other comprehensive income
(127)
(192)
\nCurrency translation di\ufb00erences
(10)
(7)
\nClosing balance
(972)
(457)
\nTax losses carried forward
\n31 December 2022
\nGross tax losses
Net tax losses
Unrecognised tax
Recognised deferred tax
\nAmounts in NOK million
carried forward
carried forward
losses
losses carried forward
\nFrance
1 803
451
(337)
114
\nChina
490
74
(73)
-
\nBrazil
175
59
(59)
-
\nParaguay
295
30
(31)
-
\nMalaysia
61
15
(14)
-
\nUS
56
14
-
14
\nCanada
18
5
(5)
-
\nMexico
3
1
(1)
-
\nTotal tax losses to carried forward
2 901
649
(520)
128
\nTax losses carried forward
\n31 December 2021
\nGross tax losses
Net tax losses
Unrecognised tax
Recognised deferred tax
\nAmounts in NOK million
carried forward
carried forward
losses
losses carried forward
\nFrance
1 602
431
(347)
84
\nChina
183
39
(28)
11
\nBrazil
170
58
(58)
-
\nMalaysia
96
23
(23)
-
\nParaguay
298
29
(29)
-
\nCanada
3
1
(1)
-
\nMexico
1
0
(0)
-
\nTotal tax losses to carried forward
2 353
582
(486)
95
\nTax losses carried forward by expiry date
\n31.12.2022
31.12.2021
\nTotal
Total
Total
Total
\nunrecognised
recognised
unrecognised
recognised
\nAmounts in NOK million
losses
losses
losses
losses
\nLoss car.forw.which exp. within 1 year
(3)
-
-
-
\nLoss car.forw.which exp. within 2 years
(5)
-
-
-
\nLoss car.forw.which exp. within 3 years
(9)
-
-
-
\nLoss car.forw.which exp. within 4 years
(10)
-
(29)
-
\nLoss car.forw.which exp. within 5 years
(70)
-
-
-
\nLoss car.forw.which exp. within 5-10 years
(7)
-
-
11
\nWithout maturity
(416)
128
(458)
84
\nTotal tax losses carried forward
(520)
128
(486)
95
\nPending tax issues with tax authorities
\nThe Norwegian Tax O\ufb03ce decided in February 2021 to increase
\nElkem ASA\u2019s taxable income for the \ufb01scal years 2016-2019 by in
\ntotal NOK 781 million, which would have lead to an increase in
\nthe income tax expense of NOK 181 million. The reassessments
\nrelate to loan arrangements / debt waiver agreements acquired
\nby Elkem ASA in 2016 through the cross-border parent-
\nsubsidiary merger with Bluestar Silicones International Sarl.
\nElkem is of the opinion that the reassessment is unfounded
\nand will appeal. Based on legal advice, Elkem\u2019s assessment is
\nthat the defence against the action will be successful, and the
\nincrease in taxable income is therefore not recognised in pro\ufb01t
\nor loss. The amount was paid in \ufb01rst quarter of 2021 and a
\ncorresponding receivable for the paid income tax is recognised
\nin 2021, see note 22 Other assets.
\nDebt waiver
\nElkem Silicones France SAS has four Elkem internal debt
\nwaiver agreements where internal loans were converted to
\nequity and the converted amounts were treated as taxable
\nincome. Elkem Silicones France SAS can only reinstate the
\nloans to the extent that the company has an accounting
\npro\ufb01t according to IFRS. All debt that is reinstated under the
\nagreements can be deducted against taxable income. The
\ngross taxable value of the agreements as of 31 December 2022
\nis NOK 595 million (NOK 595 million). Elkem Silicones France
\nSAS has not reinstated any loan amounts in 2022 or 2021 and
\ncorrespondingly no tax credit is recognised in 2022 or 2021.
\nDebt waiver 31 December 2022
\nAmounts in NOK million
2010
2012
2013
2014
Total
\nGross value of debt waiver
54
186
149
207
595
\nUtilised 2022
-
-
-
-
-
\nTotal debt that can be reversed
54
186
149
207
595
\nDeferred tax asset unrecognised
\n1)
\n15
50
40
56
161
\nThe respective agreements expire in
3 years
5 years
6 years
7 years
Debt waiver 31 December 2021
\nAmounts in NOK million
2010
2012
2013
2014
Total
\nGross value of debt waiver
54
186
149
207
595
\nUtilised 2021
-
-
-
-
-
\nTotal debt that can be reversed
54
186
149
207
595
\nDeferred tax asset unrecognised
\n1)
\n15
50
40
56
161
\nThe respective agreements expire in
4 years
6 years
7 years
8 years
\n1)
\nBased on tax rate 27.0% (28.4% ), which is applicable in France.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16019": {
"value": "14. TaxesJudgements and estimates
\nPart of the basis for recognising deferred tax assets is based on
\napplying the loss carried forward against future taxable income
\nin the group, which requires use of estimates for calculating
\nfuture taxable income. Deferred tax assets are not recognised
\nfor start-up projects and entities with longer periods of losses
\nunless there is convincing evidence of recoverability. Elkem
\nrecognises a previously unrecognised deferred tax asset to the
\nextent that it has become probable that future taxable pro\ufb01t will
\nallow the deferred asset to be recovered. For example, when
\nstart up projects becomes pro\ufb01table or the market condition
\nhas changed so the entity has longer periods with historic
\ntaxable pro\ufb01ts and future forecasted taxable pro\ufb01ts. When
\nestimating uncertain tax positions the most probable amount,
\nincluding interests and penalties, is used because in most cases
\nthe outcome of the tax review is binary.
\nIncome tax recognised in pro\ufb01t or loss
\nAmounts in NOK million
\n2022
2021
\nPro\ufb01t (loss) before income tax
\nCurrent taxes
\nDeferred taxes
\nTotal income tax (expense) bene\ufb01t
\n12 236
\n(2 234)
\n(360)
\n(2 594)
\n5 827
\n(1 145)
\n(18)
\n(1 163)
\nIncome taxes recognised in other comprehensive income (OCI)
\nAmounts in NOK million
\n2022
2021
\nRemeasurement of de\ufb01ned bene\ufb01t pension plans
\n(33)
(10)
\nHedging of net investment in foreign operations
\n31
(29)
\nCash \ufb02ow hedges
\n(125)
(153)
\nTotal tax charged to OCI
\n(127)
(192)
\nReconciliation of income tax (expense) bene\ufb01t
\nAmounts in NOK million
2022
2021
\nPro\ufb01t (loss) before income tax
\nExpected income taxes, 22% of pro\ufb01t before tax (22%)
\nTax e\ufb00ects of:
\nDi\ufb00erence in tax rates for each individual jurisdiction
\nPreferential tax rates
\nPermanent di\ufb00erences
\nTax e\ufb00ects of income from Norwegian controlled foreign companies (NOKUS)
\nTax e\ufb00ects share of pro\ufb01t (loss) from equity accounted companies
\nTax e\ufb00ects non-deductible expenses
\nTax relief based on value of equity
\nTax e\ufb00ects gains (losses) on acquisition and disposal of subsidiaries
\nTax e\ufb00ects non-taxable income
\nOther e\ufb00ects
\nTax e\ufb00ects of changes in unrecognised deferred tax assets
\nTax e\ufb00ects of change in tax rate
\nOther current taxes paid
\nPrevious year tax adjustment
\nTotal income tax (expense) bene\ufb01t
\n12 236
\n(2 692)
\n(99)
\n61
\n(16)
\n24
\n(12)
\n19
\n34
\n134
\n(32)
\n-
\n(10)
\n(5)
\n(2 594)
\n5 827
\n(1 282)
\n(94)
\n12
\n(8)
\n19
\n(24)
\n18
\n-
\n76
\n157
\n(19)
\n(35)
\n15
\n(1 163)
\nE\ufb00ective tax rate
21 %
20 %
\nThree companies in China are taxed under the regulations for
\n\"High and new technology company\" which mean that the
\ntax rate is 15% compared to the regular 25%. The companies
\nhave to con\ufb01rm to the authorities every year that they ful\ufb01l the
\nconditions for \"High and new technology company\" in order to
\napply the preferential tax rate.
\nTax e\ufb00ect of non-taxable income is mainly related to R&D,
\nadditional R&D deduction and non-taxable R&D grants, and
\nadditional deduction on investments in \ufb01xed assets equipment.
\nOther current taxes paid relates mainly to taxes that are
\nindirectly calculated based on pro\ufb01t (loss) before income tax
\nand withholding taxes on dividends.
\nDeferred tax assets and deferred tax liabilities
\n31.12.2022
31.12.2021
\nAmounts in NOK million
\nTemporary
\ndi\ufb00erence
Deferred tax
\nTemporary
\ndi\ufb00erence
Deferred tax
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nPension liabilities
\nTrade receivables
\nInventories
\nProvisions
\nOther di\ufb00erences
\nDebt waiver
\nTax losses carried forward
\nGross deferred tax assets
\n-
\n412
\n325
\n92
\n998
\n364
\n458
\n595
\n2 901
\n6 145
\n-
\n69
\n79
\n7
\n222
\n72
\n93
\n161
\n648
\n1 351
\n17
\n795
\n465
\n89
\n639
\n208
\n302
\n595
\n2 353
\n5 463
\n4
\n198
\n121
\n16
\n157
\n53
\n68
\n161
\n582
\n1 359
\nUnrecognised deferred tax assets for tax loss carried forward
\nUnrecognised debt waiver
\nUnrecognised deferred tax assets other items
\n(2 398)
\n(595)
\n(1 264)
\n(520)
\n(161)
\n(190)
\n(1 960)
\n(595)
\n(1 361)
\n(486)
\n(161)
\n(340)
\nRecognised deferred tax assets
1 888
480
1 548
372
\nNetting
(329)
(324)
\nNet deferred tax assets
151
48
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nInventories
\nOther di\ufb00erences
\n2 162
\n3 451
\n284
\n683
\n476
\n775
\n62
\n139
\n560
\n2 734
\n210
\n243
\n123
\n610
\n46
\n50
\nGross deferred tax liabilities
6 580
1 452
3 748
828
\nNetting
(329)
(324)
\nNet deferred tax liabilities
1 123
505
\nNet deferred tax (liabilities) assets recognised
(972)
(457)
\nUnrecognised deferred tax assets other items, are mainly
\nrelated to property, plant and equipment and inventories. The
\ntax assets are not recognised due to uncertainty regarding
\nfuture taxable income and the long period for which the tax
\nasset shall be amortised.
Movements in net deferred tax assets and deferred tax liabilities
\nAmounts in NOK million
2022
2021
\nOpening balance
(457)
(240)
\nRecognised in pro\ufb01t or loss for the year
(360)
(18)
\nE\ufb00ect of business combination
(20)
-
\nDisposal of subsidiaries
2
-
\nRecognised in other comprehensive income
(127)
(192)
\nCurrency translation di\ufb00erences
(10)
(7)
\nClosing balance
(972)
(457)
\nTax losses carried forward
\n31 December 2022
\nGross tax losses
Net tax losses
Unrecognised tax
Recognised deferred tax
\nAmounts in NOK million
carried forward
carried forward
losses
losses carried forward
\nFrance
1 803
451
(337)
114
\nChina
490
74
(73)
-
\nBrazil
175
59
(59)
-
\nParaguay
295
30
(31)
-
\nMalaysia
61
15
(14)
-
\nUS
56
14
-
14
\nCanada
18
5
(5)
-
\nMexico
3
1
(1)
-
\nTotal tax losses to carried forward
2 901
649
(520)
128
\nTax losses carried forward
\n31 December 2021
\nGross tax losses
Net tax losses
Unrecognised tax
Recognised deferred tax
\nAmounts in NOK million
carried forward
carried forward
losses
losses carried forward
\nFrance
1 602
431
(347)
84
\nChina
183
39
(28)
11
\nBrazil
170
58
(58)
-
\nMalaysia
96
23
(23)
-
\nParaguay
298
29
(29)
-
\nCanada
3
1
(1)
-
\nMexico
1
0
(0)
-
\nTotal tax losses to carried forward
2 353
582
(486)
95
\nTax losses carried forward by expiry date
\n31.12.2022
31.12.2021
\nTotal
Total
Total
Total
\nunrecognised
recognised
unrecognised
recognised
\nAmounts in NOK million
losses
losses
losses
losses
\nLoss car.forw.which exp. within 1 year
(3)
-
-
-
\nLoss car.forw.which exp. within 2 years
(5)
-
-
-
\nLoss car.forw.which exp. within 3 years
(9)
-
-
-
\nLoss car.forw.which exp. within 4 years
(10)
-
(29)
-
\nLoss car.forw.which exp. within 5 years
(70)
-
-
-
\nLoss car.forw.which exp. within 5-10 years
(7)
-
-
11
\nWithout maturity
(416)
128
(458)
84
\nTotal tax losses carried forward
(520)
128
(486)
95
\nPending tax issues with tax authorities
\nThe Norwegian Tax O\ufb03ce decided in February 2021 to increase
\nElkem ASA\u2019s taxable income for the \ufb01scal years 2016-2019 by in
\ntotal NOK 781 million, which would have lead to an increase in
\nthe income tax expense of NOK 181 million. The reassessments
\nrelate to loan arrangements / debt waiver agreements acquired
\nby Elkem ASA in 2016 through the cross-border parent-
\nsubsidiary merger with Bluestar Silicones International Sarl.
\nElkem is of the opinion that the reassessment is unfounded
\nand will appeal. Based on legal advice, Elkem\u2019s assessment is
\nthat the defence against the action will be successful, and the
\nincrease in taxable income is therefore not recognised in pro\ufb01t
\nor loss. The amount was paid in \ufb01rst quarter of 2021 and a
\ncorresponding receivable for the paid income tax is recognised
\nin 2021, see note 22 Other assets.
\nDebt waiver
\nElkem Silicones France SAS has four Elkem internal debt
\nwaiver agreements where internal loans were converted to
\nequity and the converted amounts were treated as taxable
\nincome. Elkem Silicones France SAS can only reinstate the
\nloans to the extent that the company has an accounting
\npro\ufb01t according to IFRS. All debt that is reinstated under the
\nagreements can be deducted against taxable income. The
\ngross taxable value of the agreements as of 31 December 2022
\nis NOK 595 million (NOK 595 million). Elkem Silicones France
\nSAS has not reinstated any loan amounts in 2022 or 2021 and
\ncorrespondingly no tax credit is recognised in 2022 or 2021.
\nDebt waiver 31 December 2022
\nAmounts in NOK million
2010
2012
2013
2014
Total
\nGross value of debt waiver
54
186
149
207
595
\nUtilised 2022
-
-
-
-
-
\nTotal debt that can be reversed
54
186
149
207
595
\nDeferred tax asset unrecognised
\n1)
\n15
50
40
56
161
\nThe respective agreements expire in
3 years
5 years
6 years
7 years
Debt waiver 31 December 2021
\nAmounts in NOK million
2010
2012
2013
2014
Total
\nGross value of debt waiver
54
186
149
207
595
\nUtilised 2021
-
-
-
-
-
\nTotal debt that can be reversed
54
186
149
207
595
\nDeferred tax asset unrecognised
\n1)
\n15
50
40
56
161
\nThe respective agreements expire in
4 years
6 years
7 years
8 years
\n1)
\nBased on tax rate 27.0% (28.4% ), which is applicable in France.
Details of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
Corporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16023": {
"value": "Income taxes Current tax assets and liabilities are measured at the amount
\nexpected to be recovered from or paid to the tax authorities.
\nCurrent tax payables includes any adjustment to tax payable
\nin respect of previous years. Income tax is recognised in the
\nstatement of pro\ufb01t or loss except to the extent that it relates to
\nitems recognised directly in equity or in other comprehensive
\nincome. The group includes deductions for uncertain tax
\npositions when it is probable that the tax position will be
\nsustained in a tax review. The group records provisions relating
\nto uncertain or disputed tax positions at the amount expected
\nto be paid. The provision is reversed if the disputed tax position
\nis settled in favour of the group and can no longer be appealed.
\nPenalties and interest related to income taxes are recognised as
\nincome tax (expense) bene\ufb01t in the statement of pro\ufb01t or loss.
\nAccrued penalties and interest are recognised in the statement
\nof \ufb01nancial position in income tax payable and provisions for
\nthe current and non-current portions respectively.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16044": {
"value": "Deferred tax Deferred tax assets and liabilities are calculated using the
\nliability method with full allocation of all temporary di\ufb00erences
\nbetween the tax base and the carrying amount of assets
\nand liabilities in the \ufb01nancial statements, including tax
\nlosses carried forward. Deferred tax relating to items outside
\nstatement of pro\ufb01t or loss are recognised in correlation with
\nthe underlying transaction either in other comprehensive
\nincome or directly in equity. Deferred tax assets and liabilities
\nare not recognised if the temporary di\ufb00erence arises from
\nthe initial recognition of goodwill. Deferred tax assets are
\nrecognised in the statement of \ufb01nancial position to the extent
\nthat it is more likely than not that the tax assets will be utilised
\nagainst deferred tax liabilities or future taxable income.
\nDeferred tax assets arising from tax losses are recognised
\nwhen there is convincing evidence of recoverability. The tax
\nrates substantively enacted at the end of the reporting period
\nand undiscounted amounts are used. Deferred tax assets
\nand liabilities are o\ufb00set if there is a legally enforceable right
\nto o\ufb00set current tax liabilities and assets, and Elkem intends
\nto settle current tax liabilities and assets on a net basis, or to
\nrealise the tax assets and settle the liabilities simultaneously.
\nDeferred tax assets are reviewed at each reporting date and
\nare reduced to the extent that it is no longer probable that the
\nrelated tax bene\ufb01t will be realised; such reductions are reversed
\nwhen the probability of future taxable pro\ufb01ts improves. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16200": {
"value": "Deferred tax assets and deferred tax liabilities 31.12.2022
31.12.2021
\nAmounts in NOK million
\nTemporary
\ndi\ufb00erence
Deferred tax
\nTemporary
\ndi\ufb00erence
Deferred tax
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nPension liabilities
\nTrade receivables
\nInventories
\nProvisions
\nOther di\ufb00erences
\nDebt waiver
\nTax losses carried forward
\nGross deferred tax assets
\n-
\n412
\n325
\n92
\n998
\n364
\n458
\n595
\n2 901
\n6 145
\n-
\n69
\n79
\n7
\n222
\n72
\n93
\n161
\n648
\n1 351
\n17
\n795
\n465
\n89
\n639
\n208
\n302
\n595
\n2 353
\n5 463
\n4
\n198
\n121
\n16
\n157
\n53
\n68
\n161
\n582
\n1 359
\nUnrecognised deferred tax assets for tax loss carried forward
\nUnrecognised debt waiver
\nUnrecognised deferred tax assets other items
\n(2 398)
\n(595)
\n(1 264)
\n(520)
\n(161)
\n(190)
\n(1 960)
\n(595)
\n(1 361)
\n(486)
\n(161)
\n(340)
\nRecognised deferred tax assets
1 888
480
1 548
372
\nNetting
(329)
(324)
\nNet deferred tax assets
151
48
\nDerivatives including cash \ufb02ow hedges
\nProperty, plant and equipment and intangible assets
\nInventories
\nOther di\ufb00erences
\n2 162
\n3 451
\n284
\n683
\n476
\n775
\n62
\n139
\n560
\n2 734
\n210
\n243
\n123
\n610
\n46
\n50
\nGross deferred tax liabilities
6 580
1 452
3 748
828
\nNetting
(329)
(324)
\nNet deferred tax liabilities
1 123
505
\nNet deferred tax (liabilities) assets recognised
(972)
(457)
\nUnrecognised deferred tax assets other items, are mainly
\nrelated to property, plant and equipment and inventories. The
\ntax assets are not recognised due to uncertainty regarding
\nfuture taxable income and the long period for which the tax
\nasset shall be amortised.
Movements in net deferred tax assets and deferred tax liabilities
\nAmounts in NOK million
2022
2021
\nOpening balance
(457)
(240)
\nRecognised in pro\ufb01t or loss for the year
(360)
(18)
\nE\ufb00ect of business combination
(20)
-
\nDisposal of subsidiaries
2
-
\nRecognised in other comprehensive income
(127)
(192)
\nCurrency translation di\ufb00erences
(10)
(7)
\nClosing balance
(972)
(457)",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16644": {
"value": "15. Property, plant and equipment Judgements and estimates
\nEstimated useful lives, residual values (if any) included
\nin calculation of depreciation of PPE are reviewed and, if
\nnecessary, adjusted at least annually.
\nDetails of property, plant and equipment
\n2022
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposal of subsidiaries (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n217
\n1
\n2
\n-
\n1
\n-
\n(0)
\n13
\n8 064
\n13
\n475
\n1
\n185
\n-
\n(10)
\n229
\n23 043
\n34
\n1 271
\n1
\n749
\n-
\n(384)
\n691
\n866
\n5
\n181
\n(6)
\n0
\n-
\n(9)
\n40
\n2 819
\n4 091
\n(1 929)
\n(40)
\n7
\n(29)
\n(12)
\n116
\n35 009
\n4 143
\n-
\n(43)
\n942
\n(29)
\n(415)
\n1 088
\nClosing balance
233
8 957
25 406
1 078
5 022
40 696
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 999)
\n(263)
\n0
\n8
\n(68)
\n(13 085)
\n(1 293)
\n(1)
\n306
\n(365)
\n(430)
\n(137)
\n1
\n6
\n(20)
\n(16 514)
\n(1 693)
\n0
\n321
\n(453)
\nClosing balance
(3 322)
(14 437)
(580)
(18 339)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n(1)
\n(419)
\n(10)
\n6
\n0
\n(13)
\n(2 315)
\n(13)
\n(6)
\n44
\n(68)
\n(1)
\n(0)
\n(0)
\n0
\n(0)
\n(28)
\n(5)
\n-
\n4
\n(1)
\n(2 774)
\n(28)
\n(0)
\n48
\n(82)
\nClosing balance
(11)
(435)
(2 358)
(1)
(30)
(2 836)
\nCarrying amount
\nClosing balance
222
5 200
8 610
497
4 991
19 520
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n2 738
\n5\u201350 years
\nStraight-line
\n6 592
\n3\u201350 years
\nStraight-line
\n252
\n3\u201320 years
\nStraight-line
\n-
9 583
\nCapitalised interest is NOK 20 million in 2022. The weighted
\naverage cost of capital for capitalisation of loan interest in
\n2022 is in the range of 2.5% and 3.7% per annum.
Details of property, plant and equipment
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n184
\n17
\n21
\n-
\n-
\n(0)
\n(5)
\n7 474
\n55
\n344
\n7
\n-
\n(21)
\n205
\n21 720
\n67
\n1 122
\n1
\n-
\n(290)
\n423
\n582
\n132
\n186
\n(14)
\n-
\n(12)
\n(8)
\n1 799
\n2 762
\n(1 674)
\n(105)
\n-
\n(6)
\n42
\n31 759
\n3 033
\n-
\n(110)
\n-
\n(328)
\n656
\nClosing balance
217
8 064
23 043
866
2 819
35 009
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 738)
\n(236)
\n(6)
\n17
\n(37)
\n(11 929)
\n(1 211)
\n(2)
\n228
\n(171)
\n(377)
\n(76)
\n9
\n10
\n4
\n(15 043)
\n(1 523)
\n1
\n255
\n(203)
\nClosing balance
(2 999)
(13 085)
(430)
(16 514)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n0
\n(384)
\n(9)
\n-
\n0
\n(25)
\n(2 162)
\n(54)
\n(0)
\n35
\n(134)
\n(0)
\n(1)
\n0
\n0
\n(0)
\n(26)
\n(3)
\n-
\n2
\n(2)
\n(2 584)
\n(67)
\n-
\n38
\n(160)
\nClosing balance
(11)
(419)
(2 315)
(1)
(28)
(2 774)
\nCarrying amount
\nClosing balance
206
4 646
7 644
435
2 790
15 722
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n1 368
\n5\u201350 years
\nStraight-line
\n6 455
\n3\u201350 years
\nStraight-line
\n126
\n3\u201320 years
\nStraight-line
\n-
7 950
\nCapitalised interest is NOK 5 million in 2021. The weighted
\naverage cost of capital for capitalisation of loan interest in 2021
\nis in the range of 2.5% and 3.1% per annum.
\nElkem has decided to transfer the production at Elkem Carbon
\nMalaysia to other Elkem Carbon Solutions production sites.
\nAn impairment loss of NOK 60 million was recognised in
\n2021 due to the transfer, of which NOK 55 million is related
\nto impairment of property, plant and equipment and NOK
\n5 million to right-of-use assets. The impairment loss of PPE
\nis mainly related to plant, machinery, equipment and motor
\nvehicles and buildings and other property.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16645": {
"value": "15. Property, plant and equipment Judgements and estimates
\nEstimated useful lives, residual values (if any) included
\nin calculation of depreciation of PPE are reviewed and, if
\nnecessary, adjusted at least annually.
\nDetails of property, plant and equipment
\n2022
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposal of subsidiaries (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n217
\n1
\n2
\n-
\n1
\n-
\n(0)
\n13
\n8 064
\n13
\n475
\n1
\n185
\n-
\n(10)
\n229
\n23 043
\n34
\n1 271
\n1
\n749
\n-
\n(384)
\n691
\n866
\n5
\n181
\n(6)
\n0
\n-
\n(9)
\n40
\n2 819
\n4 091
\n(1 929)
\n(40)
\n7
\n(29)
\n(12)
\n116
\n35 009
\n4 143
\n-
\n(43)
\n942
\n(29)
\n(415)
\n1 088
\nClosing balance
233
8 957
25 406
1 078
5 022
40 696
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 999)
\n(263)
\n0
\n8
\n(68)
\n(13 085)
\n(1 293)
\n(1)
\n306
\n(365)
\n(430)
\n(137)
\n1
\n6
\n(20)
\n(16 514)
\n(1 693)
\n0
\n321
\n(453)
\nClosing balance
(3 322)
(14 437)
(580)
(18 339)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n(1)
\n(419)
\n(10)
\n6
\n0
\n(13)
\n(2 315)
\n(13)
\n(6)
\n44
\n(68)
\n(1)
\n(0)
\n(0)
\n0
\n(0)
\n(28)
\n(5)
\n-
\n4
\n(1)
\n(2 774)
\n(28)
\n(0)
\n48
\n(82)
\nClosing balance
(11)
(435)
(2 358)
(1)
(30)
(2 836)
\nCarrying amount
\nClosing balance
222
5 200
8 610
497
4 991
19 520
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n2 738
\n5\u201350 years
\nStraight-line
\n6 592
\n3\u201350 years
\nStraight-line
\n252
\n3\u201320 years
\nStraight-line
\n-
9 583
\nCapitalised interest is NOK 20 million in 2022. The weighted
\naverage cost of capital for capitalisation of loan interest in
\n2022 is in the range of 2.5% and 3.7% per annum.
Details of property, plant and equipment
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant,
\nmachinery,
\nequipment
\nand motor
\nvehicles
\nO\ufb03ce
\nand other
\nequipment
\nConstruction
\nin progress
Total
\nCost
\nOpening balance
\nAdditions
\nTransferred from CiP
\nReclassi\ufb01cation
\nBusiness combinations (note 4)
\nDisposals
\nCurrency translation di\ufb00erences
\n184
\n17
\n21
\n-
\n-
\n(0)
\n(5)
\n7 474
\n55
\n344
\n7
\n-
\n(21)
\n205
\n21 720
\n67
\n1 122
\n1
\n-
\n(290)
\n423
\n582
\n132
\n186
\n(14)
\n-
\n(12)
\n(8)
\n1 799
\n2 762
\n(1 674)
\n(105)
\n-
\n(6)
\n42
\n31 759
\n3 033
\n-
\n(110)
\n-
\n(328)
\n656
\nClosing balance
217
8 064
23 043
866
2 819
35 009
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(2 738)
\n(236)
\n(6)
\n17
\n(37)
\n(11 929)
\n(1 211)
\n(2)
\n228
\n(171)
\n(377)
\n(76)
\n9
\n10
\n4
\n(15 043)
\n(1 523)
\n1
\n255
\n(203)
\nClosing balance
(2 999)
(13 085)
(430)
(16 514)
\nImpairment losses
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nDisposals
\nCurrency translation di\ufb00erences
\n(11)
\n-
\n-
\n-
\n0
\n(384)
\n(9)
\n-
\n0
\n(25)
\n(2 162)
\n(54)
\n(0)
\n35
\n(134)
\n(0)
\n(1)
\n0
\n0
\n(0)
\n(26)
\n(3)
\n-
\n2
\n(2)
\n(2 584)
\n(67)
\n-
\n38
\n(160)
\nClosing balance
(11)
(419)
(2 315)
(1)
(28)
(2 774)
\nCarrying amount
\nClosing balance
206
4 646
7 644
435
2 790
15 722
\nOriginal cost of assets fully depreciated
\nbut still in use
\nEstimated useful life
\nDepreciation plan
\n0
\nInde\ufb01nite
\n1 368
\n5\u201350 years
\nStraight-line
\n6 455
\n3\u201350 years
\nStraight-line
\n126
\n3\u201320 years
\nStraight-line
\n-
7 950
\nCapitalised interest is NOK 5 million in 2021. The weighted
\naverage cost of capital for capitalisation of loan interest in 2021
\nis in the range of 2.5% and 3.1% per annum.
\nElkem has decided to transfer the production at Elkem Carbon
\nMalaysia to other Elkem Carbon Solutions production sites.
\nAn impairment loss of NOK 60 million was recognised in
\n2021 due to the transfer, of which NOK 55 million is related
\nto impairment of property, plant and equipment and NOK
\n5 million to right-of-use assets. The impairment loss of PPE
\nis mainly related to plant, machinery, equipment and motor
\nvehicles and buildings and other property.
16. Leases Judgements and estimates
\nThe lease term is determined as the non-cancellable period
\nof a lease, together with any periods covered by an option
\nto extend the lease if Elkem is reasonably certain to exercise
\nthat option and any periods covered by an option to terminate
\nthe lease if the lessee is reasonably certain not to exercise
\nthat option. Elkem's main renewal options relate to lease
\nof buildings for o\ufb03ce and production purpose, included in
\nPlant, buildings and other property, and lease of land and it is
\nreasonably certain that the renewal option will be used. Elkem
\nreassesses the lease term if there is a signi\ufb01cant event or
\nchange in circumstances that is within its control and a\ufb00ects
\nits ability to exercise, or not to exercise, the option to renew.
Details of right-of-use assets
\n2022
\nBuildings
Plant, machinery,
\nand other
equipment and
O\ufb03ce and other
\nAmounts in NOK million
Land
property
motor vehicles
equipment
Total
\nCost
\nOpening balance
432
730
138
11
1 310
\nAdditions / lease modi\ufb01cations / remeasurements
4
105
21
0
131
\nDisposal of subsidiaries (note 4)
(118)
(145)
-
-
(264)
\nPartial or full termination of agreements
(0)
(46)
(15)
(9)
(71)
\nCurrency translation di\ufb00erences
9
15
7
1
31
\nClosing balance
326
659
150
2
1 138
\nAccumulated depreciation
\nOpening balance
(66)
(143)
(75)
(5)
(288)
\nAdditions
(8)
(79)
(32)
(1)
(119)
\nDisposal of subsidiaries (note 4)
8
10
-
-
18
\nReclassi\ufb01cation
(3)
(7)
-
-
(10)
\nPartial or full termination of agreements
0
32
15
5
53
\nCurrency translation di\ufb00erences
(2)
(6)
(4)
(0)
(12)
\nClosing balance
(70)
(191)
(96)
(1)
(359)
\nImpairment losses
\nOpening balance
-
(1)
-
(4)
(5)
\nDisposals
-
1
-
4
5
\nCurrency translation di\ufb00erences
-
(0)
-
(0)
(0)
\nClosing balance
-
(0)
-
-
0
\nCarrying amount
\nClosing balance
256
468
55
1
779
\nEstimated useful life
8\u201399 years
2\u201325 years
2\u20136 years
3-4 years
\nDepreciation plan
Straight-line
Straight-line
Straight-line
Straight-line
\nDetails of right-of-use assets
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant, machinery,
\nequipment and
\nmotor vehicles
\nO\ufb03ce and other
\nequipment
Total
\nCost
\nOpening balance
\nAdditions / lease modi\ufb01cations / remeasurements
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n415
\n0
\n(0)
\n-
\n17
\n529
\n239
\n0
\n(41)
\n2
\n134
\n18
\n0
\n(10)
\n(5)
\n10
\n2
\n(1)
\n-
\n(0)
\n1 087
\n260
\n-
\n(51)
\n14
\nClosing balance
432
730
138
11
1 310
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n(51)
\n(4)
\n(7)
\n-
\n(3)
\n(105)
\n(77)
\n(0)
\n40
\n(1)
\n(53)
\n(34)
\n0
\n9
\n2
\n(3)
\n(2)
\n0
\n-
\n0
\n(212)
\n(116)
\n(7)
\n49
\n(2)
\nClosing balance
(66)
(143)
(75)
(5)
(288)
\nImpairment losses
\nOpening balance
\nAdditions
\nCurrency translation di\ufb00erences
\n-
\n-
\n-
\n-
\n(1)
\n(0)
\n-
\n-
\n-
\n-
\n(4)
\n(0)
\n-
\n(5)
\n(0)
\nClosing balance
-
(1)
-
(4)
(5)
\nCarrying amount
\nClosing balance
366
586
62
2
1 017
\nEstimated useful life
\nDepreciation plan
\n1\u201399 years
\nStraight-line
\n1\u201325 years
\nStraight-line
\n2\u20135 years
\nStraight-line
\n3-6 years
\nStraight-line
\nCarrying amounts of lease liabilities and the movements during the period
\nAmounts in NOK million
2022
2021
\nOpening balance
801
663
\nAdditions / lease modi\ufb01cations / remeasurements
124
260
\nPartial or full termination of agreements
(6)
(2)
\nDisposal of subsidiaries
(238)
-
\nPayments
(146)
(144)
\nInterest expenses on lease liabilities
30
26
\nCurrency translation di\ufb00erences
13
(2)
\nClosing balance (note 23)
578
801
\nThe maturity analysis of lease liabilities is disclosed in note 23
\nInterest-bearing assets and liabilities
Amounts recognised in consolidated statement of pro\ufb01t or loss
\nAmounts in NOK million
2022
2021
\nDepreciation of right-of-use assets
(119)
(116)
\nInterest expenses on lease liabilities (note 13)
(30)
(26)
\nLeasing expenses, short-term leases (note 11)
(56)
(44)
\nLeasing expenses, low value assets (note 11)
(13)
(11)
\nLeasing expenses, variable lease payments (note 11)
(2)
(2)
\nTotal amount recognised in consolidated statement of pro\ufb01t or loss
(219)
(199)
\n17. Other intangible assets
Judgements and estimates
\nEstimated useful lives are used in calculation of amortisation
\nof intangible assets, these are reviewed, and if necessary
\nadjusted, at least annually.
\nDetails of intangible assets
\n2022
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n103
\n-
\n828
\n-
\n567
\n24
\n775
\n1
\n335
\n0
\n568
\n310
\n3 175
\n335
\nTransferred from CiP
-
-
5
58
-
(63)
-
\nReclassi\ufb01cation
-
3
43
-
(1)
7
53
\nBusiness combinations (note 4)
-
0
-
-
6
-
6
\nDisposal of subsidiaries (note 4)
-
-
-
-
-
(460)
(460)
\nDisposals
-
-
(30)
-
-
(3)
(33)
\nCurrency translation di\ufb00erences
5
36
18
46
11
18
134
\nClosing balance
108
868
627
880
350
377
3 209
\nAccumulated amortisation
\nOpening balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nAdditions
(2)
(41)
(54)
(57)
(33)
(186)
\nReclassi\ufb01cation
-
-
(1)
-
1
(0)
\nDisposals
-
-
8
-
-
8
\nCurrency translation di\ufb00erences
(3)
(26)
(12)
(30)
(3)
(74)
\nClosing balance
(59)
(579)
(457)
(606)
(122)
(1 824)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nCurrency translation di\ufb00erences
(0)
-
-
-
-
-
(0)
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
48
288
170
273
228
377
1 385
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2022 consists mainly of capitalisation of development projects of NOK 312 million of which NOK 230 million is related to Elkem's
\nbiocarbon initiative and battery projects.
Details of intangible assets
\n2021
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n108
\n-
\n836
\n1
\n469
\n16
\n714
\n-
\n322
\n-
\n305
\n324
\n2 753
\n342
\nTransferred from CiP
-
2
6
80
-
(87)
-
\nReclassi\ufb01cation
-
8
81
-
-
29
118
\nBusiness combinations (note 4)
-
-
-
-
-
-
-
\nDisposals
-
-
(9)
-
(0)
-
(9)
\nCurrency translation di\ufb00erences
(5)
(19)
4
(19)
12
(2)
(28)
\nClosing balance
103
828
567
775
335
568
3 175
\nAccumulated amortisation
\nOpening balance
(56)
(487)
(349)
(486)
(55)
(1 433)
\nAdditions
(1)
(41)
(50)
(53)
(31)
(177)
\nReclassi\ufb01cation
-
-
(1)
-
-
(1)
\nDisposals
-
-
5
-
0
5
\nCurrency translation di\ufb00erences
3
15
(3)
21
(1)
35
\nClosing balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nAdditions
-
-
(4)
-
-
-
(4)
\nDisposals
-
-
4
-
-
-
4
\nCurrency translation di\ufb00erences
0
-
-
-
-
-
0
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
47
315
169
256
248
568
1 602
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2021 consists mainly of capitalisation of development projects of NOK 300 million of which NOK 228 million is related to Elkem's
\nbiocarbon initiative and battery projects.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16649": {
"value": "Principle Property, plant and equipment
\nProperty, plant and equipment (PPE) are stated in the
\nconsolidated statement of \ufb01nancial position at cost less
\naccumulated depreciation and accumulated impairment
\nlosses. PPE acquired in business combinations are recognised
\nat fair value at the acquisition date. PPE acquired in a business
\ncombination under common control are re\ufb02ected at their
\ncarrying amounts. Assets in the course of construction are
\ncarried at cost less any recognised impairment loss. Such
\nassets are classi\ufb01ed to the appropriate categories of PPE when
\ncompleted and ready for the intended use. When signi\ufb01cant
\nparts of an item of PPE have di\ufb00erent useful lives, they are
\naccounted for as separate items.
\nInitial cost includes expenditures that are directly attributable
\nto the acquisition of the asset, cost of materials, direct labour,
\nany other costs directly attributable to bringing the assets
\nto working condition for their intended use and estimated
\ndismantling or removal charges.
\nSubsequent costs are included in the asset's carrying amount
\nor recognised as a separate asset, as appropriate, when future
\nbene\ufb01ts are probable and the cost can be measured reliably.
\nThe carrying amount of the replaced part is derecognised.
\nMajor periodic maintenance that is carried out less frequently
\nthan every year, is capitalised and depreciated over the period
\nuntil the next periodic maintenance is performed. All other
\nrepairs and maintenance are charged to the statement of pro\ufb01t
\nor loss when incurred.
\nDepreciations are calculated based on estimated useful life
\nand expected residual value for each item of PPE and are
\nrecognised in the statement of pro\ufb01t or loss using the straight-
\nline method. The estimated useful lives, residual values (if
\nany) and depreciation method are reviewed, and if necessary
\nadjusted, at least annually. Depreciation commences when the
\nassets are ready for their intended use.
\nAn item of PPE is derecognised upon disposal or when no
\nfuture economic bene\ufb01ts are expected to arise from the
\ncontinued use of the asset. Any gain or loss arising on disposal
\nor retirement of PPE, determined as the di\ufb00erence between
\nthe sales proceeds and the carrying amount of the asset, is
\nrecognised under other operating income or other operating
\nexpenses in the statement of pro\ufb01t or loss.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16670": {
"value": "Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, when future
\nbene\ufb01ts are probable and the cost can be measured reliably.
\nThe carrying amount of the replaced part is derecognised.
\nMajor periodic maintenance that is carried out less frequently
\nthan every year, is capitalised and depreciated over the period
\nuntil the next periodic maintenance is performed. All other
\nrepairs and maintenance are charged to the statement of pro\ufb01t
\nor loss when incurred.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f16681": {
"value": "Depreciations are calculated based on estimated useful life
\nand expected residual value for each item of PPE and are
\nrecognised in the statement of pro\ufb01t or loss using the straight-
\nline method. The estimated useful lives, residual values (if
\nany) and depreciation method are reviewed, and if necessary
\nadjusted, at least annually. Depreciation commences when the
\nassets are ready for their intended use.
Elkem recognise right-of-use assets at the commencement
\ndate of the lease (i.e., the date the underlying assets is
\navailable for use). Right-of-use assets are measured at cost,
\nless any accumulated depreciation and impairment losses, and
\nadjusted for any remeasurement of lease liabilities. The cost
\nof right-of-use assets includes the amount of lease liabilities
\nrecognised, initial direct costs incurred, and lease payments
\nmade at or before the commencement date less any lease
\nincentives received. Right-of-use assets are depreciated on a
\nstraight-line basis from the commencement date to the earlier
\nof the lease term and the remaining useful life of the right-of-
\nuse asset for assets where Elkem does not obtain ownership
\nof the leased asset at the end of the lease term. Depreciation
\nexpense on the right-of-use asset is presented as depreciation
\nin the statement of pro\ufb01t or loss. Right-of-use assets are
\nsubject to impairment assessments as described in note 19
\nImpairment assessment.
Intangible assets are stated in the consolidated \ufb01nancial
\nstatements at cost less accumulated amortisation and
\naccumulated impairment losses. Intangible assets acquired
\nin business combinations are recognised at fair value at the
\nacquisition date. Intangible assets with a \ufb01nite useful life are
\namortised, using the straight-line method, commencing when
\nthe asset is available for use. Assets that are an integral part of
\na group of assets are amortised from the date the related asset
\ngroup as a whole is ready for its intended use. Such assets are
\nimpairment tested annually.
\nThe estimated useful lives are reviewed at the end of each
\nreporting period.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17095": {
"value": "16. Leases Judgements and estimates
\nThe lease term is determined as the non-cancellable period
\nof a lease, together with any periods covered by an option
\nto extend the lease if Elkem is reasonably certain to exercise
\nthat option and any periods covered by an option to terminate
\nthe lease if the lessee is reasonably certain not to exercise
\nthat option. Elkem's main renewal options relate to lease
\nof buildings for o\ufb03ce and production purpose, included in
\nPlant, buildings and other property, and lease of land and it is
\nreasonably certain that the renewal option will be used. Elkem
\nreassesses the lease term if there is a signi\ufb01cant event or
\nchange in circumstances that is within its control and a\ufb00ects
\nits ability to exercise, or not to exercise, the option to renew.
Details of right-of-use assets
\n2022
\nBuildings
Plant, machinery,
\nand other
equipment and
O\ufb03ce and other
\nAmounts in NOK million
Land
property
motor vehicles
equipment
Total
\nCost
\nOpening balance
432
730
138
11
1 310
\nAdditions / lease modi\ufb01cations / remeasurements
4
105
21
0
131
\nDisposal of subsidiaries (note 4)
(118)
(145)
-
-
(264)
\nPartial or full termination of agreements
(0)
(46)
(15)
(9)
(71)
\nCurrency translation di\ufb00erences
9
15
7
1
31
\nClosing balance
326
659
150
2
1 138
\nAccumulated depreciation
\nOpening balance
(66)
(143)
(75)
(5)
(288)
\nAdditions
(8)
(79)
(32)
(1)
(119)
\nDisposal of subsidiaries (note 4)
8
10
-
-
18
\nReclassi\ufb01cation
(3)
(7)
-
-
(10)
\nPartial or full termination of agreements
0
32
15
5
53
\nCurrency translation di\ufb00erences
(2)
(6)
(4)
(0)
(12)
\nClosing balance
(70)
(191)
(96)
(1)
(359)
\nImpairment losses
\nOpening balance
-
(1)
-
(4)
(5)
\nDisposals
-
1
-
4
5
\nCurrency translation di\ufb00erences
-
(0)
-
(0)
(0)
\nClosing balance
-
(0)
-
-
0
\nCarrying amount
\nClosing balance
256
468
55
1
779
\nEstimated useful life
8\u201399 years
2\u201325 years
2\u20136 years
3-4 years
\nDepreciation plan
Straight-line
Straight-line
Straight-line
Straight-line
\nDetails of right-of-use assets
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant, machinery,
\nequipment and
\nmotor vehicles
\nO\ufb03ce and other
\nequipment
Total
\nCost
\nOpening balance
\nAdditions / lease modi\ufb01cations / remeasurements
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n415
\n0
\n(0)
\n-
\n17
\n529
\n239
\n0
\n(41)
\n2
\n134
\n18
\n0
\n(10)
\n(5)
\n10
\n2
\n(1)
\n-
\n(0)
\n1 087
\n260
\n-
\n(51)
\n14
\nClosing balance
432
730
138
11
1 310
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n(51)
\n(4)
\n(7)
\n-
\n(3)
\n(105)
\n(77)
\n(0)
\n40
\n(1)
\n(53)
\n(34)
\n0
\n9
\n2
\n(3)
\n(2)
\n0
\n-
\n0
\n(212)
\n(116)
\n(7)
\n49
\n(2)
\nClosing balance
(66)
(143)
(75)
(5)
(288)
\nImpairment losses
\nOpening balance
\nAdditions
\nCurrency translation di\ufb00erences
\n-
\n-
\n-
\n-
\n(1)
\n(0)
\n-
\n-
\n-
\n-
\n(4)
\n(0)
\n-
\n(5)
\n(0)
\nClosing balance
-
(1)
-
(4)
(5)
\nCarrying amount
\nClosing balance
366
586
62
2
1 017
\nEstimated useful life
\nDepreciation plan
\n1\u201399 years
\nStraight-line
\n1\u201325 years
\nStraight-line
\n2\u20135 years
\nStraight-line
\n3-6 years
\nStraight-line
\nCarrying amounts of lease liabilities and the movements during the period
\nAmounts in NOK million
2022
2021
\nOpening balance
801
663
\nAdditions / lease modi\ufb01cations / remeasurements
124
260
\nPartial or full termination of agreements
(6)
(2)
\nDisposal of subsidiaries
(238)
-
\nPayments
(146)
(144)
\nInterest expenses on lease liabilities
30
26
\nCurrency translation di\ufb00erences
13
(2)
\nClosing balance (note 23)
578
801
\nThe maturity analysis of lease liabilities is disclosed in note 23
\nInterest-bearing assets and liabilities
Amounts recognised in consolidated statement of pro\ufb01t or loss
\nAmounts in NOK million
2022
2021
\nDepreciation of right-of-use assets
(119)
(116)
\nInterest expenses on lease liabilities (note 13)
(30)
(26)
\nLeasing expenses, short-term leases (note 11)
(56)
(44)
\nLeasing expenses, low value assets (note 11)
(13)
(11)
\nLeasing expenses, variable lease payments (note 11)
(2)
(2)
\nTotal amount recognised in consolidated statement of pro\ufb01t or loss
(219)
(199)
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLeasesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17099": {
"value": "Principle Right-of-use assets are presented separately in the statement
\nof \ufb01nancial position, whereas lease liabilities are recognised in
\ninterest-bearing liabilities.
\nRight-of-use-assets
\nElkem`s policy in general is to own critical assets related to
\nthe production cycle, including production buildings and
\nland where this is not controlled by the local government or
\nother parties. The group`s main lease contracts comprise
\no\ufb03ce buildings and machinery / storage assets to be used at
\nproduction sites. The less signi\ufb01cant lease contracts comprise
\nemployee cars, machinery and equipment.
\nElkem assesses at contract inception whether a contract is,
\nor contains, a lease. That is, if the contract conveys the right
\nto control the use of an identi\ufb01ed asset for a period of time in
\nexchange for consideration.
\nElkem applies single recognition and measurement approach
\nfor all leases, except for:
\n\u2192
Lease contracts for which the lease term ends within
\n12 months as of the date of initial application are not
\ncapitalised (short-term leases). Elkem's short-term
\nlease commitments are mainly related to rental
\nof equipment in connection with maintenance or
\ninstallation of new equipment.
\n\u2192
Lease contracts for which the underlying asset is of low
\nvalue, mainly o\ufb03ce equipment, are not capitalised.
\n\u2192
Lease of intangible assets are not capitalised.
\n\u2192
Lease payments on contracts that are not capitalised
\nare recognised as other operating expenses on a straight-
\nline basis over the lease term.
\nElkem recognise right-of-use assets at the commencement
\ndate of the lease (i.e., the date the underlying assets is
\navailable for use). Right-of-use assets are measured at cost,
\nless any accumulated depreciation and impairment losses, and
\nadjusted for any remeasurement of lease liabilities. The cost
\nof right-of-use assets includes the amount of lease liabilities
\nrecognised, initial direct costs incurred, and lease payments
\nmade at or before the commencement date less any lease
\nincentives received. Right-of-use assets are depreciated on a
\nstraight-line basis from the commencement date to the earlier
\nof the lease term and the remaining useful life of the right-of-
\nuse asset for assets where Elkem does not obtain ownership
\nof the leased asset at the end of the lease term. Depreciation
\nexpense on the right-of-use asset is presented as depreciation
\nin the statement of pro\ufb01t or loss. Right-of-use assets are
\nsubject to impairment assessments as described in note 19
\nImpairment assessment.
\nLease liabilities
\nAt the commencement date of a lease, Elkem recognise
\nlease liabilities measured at the present value of the lease
\npayments to be made over the lease term. The lease payments
\ninclude \ufb01xed payments (less any lease incentives receivable),
\nvariable lease payments that depend on an index or a rate, and
\namounts expected to be paid under residual value guarantees.
\nNon-lease components like insurance, electricity and other
\nproperty-related expenses to be paid to landlord are excluded
\nfrom the lease commitment for o\ufb03ces. The lease payments
\nalso include the exercise price of a purchase option reasonably
\ncertain to be exercised by Elkem and payments of penalties
\nfor terminating the lease, if the lease term re\ufb02ects exercising
\nthe option to terminate. Variable lease payments that do not
\ndepend on an index or a rate are recognised as expenses in
\nthe period in which the event or condition that triggers the
\npayment occurs. Elkem uses the incremental borrowing rate
\nat the lease commencement date if the interest rate implicit
\nin the lease cannot be readily determined. The incremental
\nborrowing rate is based on the respective country's risk-free
\nrate for the term corresponding to the lease term, adjusted
\nfor own credit risk. Updated incremental borrowing rates are
\napplied to new lease contracts recognised on a quarterly basis.
\nLease liability is remeasured upon the occurrence of certain
\nevents like change in the lease term, lease payments or
\nreassessment of options which in general implies a change in
\nthe carrying amount of the right-of-use asset. If any changes
\nto the contractual terms and conditions; like increase of scope
\nElkem needs to assess whether the change implies a separate
\nlease if the change has a standalone price. The existing right-
\nof-use asset is adjusted if the increase of scope does not
\nindicate a standalone price or for any other modi\ufb01cations.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17104": {
"value": "Right-of-use-assets
\nElkem`s policy in general is to own critical assets related to
\nthe production cycle, including production buildings and
\nland where this is not controlled by the local government or
\nother parties. The group`s main lease contracts comprise
\no\ufb03ce buildings and machinery / storage assets to be used at
\nproduction sites. The less signi\ufb01cant lease contracts comprise
\nemployee cars, machinery and equipment.
\nElkem assesses at contract inception whether a contract is,
\nor contains, a lease. That is, if the contract conveys the right
\nto control the use of an identi\ufb01ed asset for a period of time in
\nexchange for consideration.
\nElkem applies single recognition and measurement approach
\nfor all leases, except for:
\n\u2192
Lease contracts for which the lease term ends within
\n12 months as of the date of initial application are not
\ncapitalised (short-term leases). Elkem's short-term
\nlease commitments are mainly related to rental
\nof equipment in connection with maintenance or
\ninstallation of new equipment.
\n\u2192
Lease contracts for which the underlying asset is of low
\nvalue, mainly o\ufb03ce equipment, are not capitalised.
\n\u2192
Lease of intangible assets are not capitalised.
\n\u2192
Lease payments on contracts that are not capitalised
\nare recognised as other operating expenses on a straight-
\nline basis over the lease term.
\nElkem recognise right-of-use assets at the commencement
\ndate of the lease (i.e., the date the underlying assets is
\navailable for use). Right-of-use assets are measured at cost,
\nless any accumulated depreciation and impairment losses, and
\nadjusted for any remeasurement of lease liabilities. The cost
\nof right-of-use assets includes the amount of lease liabilities
\nrecognised, initial direct costs incurred, and lease payments
\nmade at or before the commencement date less any lease
\nincentives received. Right-of-use assets are depreciated on a
\nstraight-line basis from the commencement date to the earlier
\nof the lease term and the remaining useful life of the right-of-
\nuse asset for assets where Elkem does not obtain ownership
\nof the leased asset at the end of the lease term. Depreciation
\nexpense on the right-of-use asset is presented as depreciation
\nin the statement of pro\ufb01t or loss. Right-of-use assets are
\nsubject to impairment assessments as described in note 19
\nImpairment assessment.
Details of right-of-use assets
\n2022
\nBuildings
Plant, machinery,
\nand other
equipment and
O\ufb03ce and other
\nAmounts in NOK million
Land
property
motor vehicles
equipment
Total
\nCost
\nOpening balance
432
730
138
11
1 310
\nAdditions / lease modi\ufb01cations / remeasurements
4
105
21
0
131
\nDisposal of subsidiaries (note 4)
(118)
(145)
-
-
(264)
\nPartial or full termination of agreements
(0)
(46)
(15)
(9)
(71)
\nCurrency translation di\ufb00erences
9
15
7
1
31
\nClosing balance
326
659
150
2
1 138
\nAccumulated depreciation
\nOpening balance
(66)
(143)
(75)
(5)
(288)
\nAdditions
(8)
(79)
(32)
(1)
(119)
\nDisposal of subsidiaries (note 4)
8
10
-
-
18
\nReclassi\ufb01cation
(3)
(7)
-
-
(10)
\nPartial or full termination of agreements
0
32
15
5
53
\nCurrency translation di\ufb00erences
(2)
(6)
(4)
(0)
(12)
\nClosing balance
(70)
(191)
(96)
(1)
(359)
\nImpairment losses
\nOpening balance
-
(1)
-
(4)
(5)
\nDisposals
-
1
-
4
5
\nCurrency translation di\ufb00erences
-
(0)
-
(0)
(0)
\nClosing balance
-
(0)
-
-
0
\nCarrying amount
\nClosing balance
256
468
55
1
779
\nEstimated useful life
8\u201399 years
2\u201325 years
2\u20136 years
3-4 years
\nDepreciation plan
Straight-line
Straight-line
Straight-line
Straight-line
\nDetails of right-of-use assets
\n2021
\nAmounts in NOK million
Land
\nBuildings
\nand other
\nproperty
\nPlant, machinery,
\nequipment and
\nmotor vehicles
\nO\ufb03ce and other
\nequipment
Total
\nCost
\nOpening balance
\nAdditions / lease modi\ufb01cations / remeasurements
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n415
\n0
\n(0)
\n-
\n17
\n529
\n239
\n0
\n(41)
\n2
\n134
\n18
\n0
\n(10)
\n(5)
\n10
\n2
\n(1)
\n-
\n(0)
\n1 087
\n260
\n-
\n(51)
\n14
\nClosing balance
432
730
138
11
1 310
\nAccumulated depreciation
\nOpening balance
\nAdditions
\nReclassi\ufb01cation
\nPartial or full termination of agreements
\nCurrency translation di\ufb00erences
\n(51)
\n(4)
\n(7)
\n-
\n(3)
\n(105)
\n(77)
\n(0)
\n40
\n(1)
\n(53)
\n(34)
\n0
\n9
\n2
\n(3)
\n(2)
\n0
\n-
\n0
\n(212)
\n(116)
\n(7)
\n49
\n(2)
\nClosing balance
(66)
(143)
(75)
(5)
(288)
\nImpairment losses
\nOpening balance
\nAdditions
\nCurrency translation di\ufb00erences
\n-
\n-
\n-
\n-
\n(1)
\n(0)
\n-
\n-
\n-
\n-
\n(4)
\n(0)
\n-
\n(5)
\n(0)
\nClosing balance
-
(1)
-
(4)
(5)
\nCarrying amount
\nClosing balance
366
586
62
2
1 017
\nEstimated useful life
\nDepreciation plan
\n1\u201399 years
\nStraight-line
\n1\u201325 years
\nStraight-line
\n2\u20135 years
\nStraight-line
\n3-6 years
\nStraight-line
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfQuantitativeInformationAboutRightofuseAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17549": {
"value": "17. Other intangible assetsJudgements and estimates
\nEstimated useful lives are used in calculation of amortisation
\nof intangible assets, these are reviewed, and if necessary
\nadjusted, at least annually.
\nDetails of intangible assets
\n2022
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n103
\n-
\n828
\n-
\n567
\n24
\n775
\n1
\n335
\n0
\n568
\n310
\n3 175
\n335
\nTransferred from CiP
-
-
5
58
-
(63)
-
\nReclassi\ufb01cation
-
3
43
-
(1)
7
53
\nBusiness combinations (note 4)
-
0
-
-
6
-
6
\nDisposal of subsidiaries (note 4)
-
-
-
-
-
(460)
(460)
\nDisposals
-
-
(30)
-
-
(3)
(33)
\nCurrency translation di\ufb00erences
5
36
18
46
11
18
134
\nClosing balance
108
868
627
880
350
377
3 209
\nAccumulated amortisation
\nOpening balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nAdditions
(2)
(41)
(54)
(57)
(33)
(186)
\nReclassi\ufb01cation
-
-
(1)
-
1
(0)
\nDisposals
-
-
8
-
-
8
\nCurrency translation di\ufb00erences
(3)
(26)
(12)
(30)
(3)
(74)
\nClosing balance
(59)
(579)
(457)
(606)
(122)
(1 824)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nCurrency translation di\ufb00erences
(0)
-
-
-
-
-
(0)
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
48
288
170
273
228
377
1 385
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2022 consists mainly of capitalisation of development projects of NOK 312 million of which NOK 230 million is related to Elkem's
\nbiocarbon initiative and battery projects.
Details of intangible assets
\n2021
\nIntangible
\nLand use
Technology
Other assets under
\nAmounts in NOK million
rights
and licences
Software Development
intangible
\n1)
\nconstruction
Total
\nCost
\nOpening balance
\nAdditions
\n2)
\n108
\n-
\n836
\n1
\n469
\n16
\n714
\n-
\n322
\n-
\n305
\n324
\n2 753
\n342
\nTransferred from CiP
-
2
6
80
-
(87)
-
\nReclassi\ufb01cation
-
8
81
-
-
29
118
\nBusiness combinations (note 4)
-
-
-
-
-
-
-
\nDisposals
-
-
(9)
-
(0)
-
(9)
\nCurrency translation di\ufb00erences
(5)
(19)
4
(19)
12
(2)
(28)
\nClosing balance
103
828
567
775
335
568
3 175
\nAccumulated amortisation
\nOpening balance
(56)
(487)
(349)
(486)
(55)
(1 433)
\nAdditions
(1)
(41)
(50)
(53)
(31)
(177)
\nReclassi\ufb01cation
-
-
(1)
-
-
(1)
\nDisposals
-
-
5
-
0
5
\nCurrency translation di\ufb00erences
3
15
(3)
21
(1)
35
\nClosing balance
(55)
(513)
(398)
(519)
(87)
(1 572)
\nImpairment losses
\nOpening balance
(1)
-
-
-
-
-
(1)
\nAdditions
-
-
(4)
-
-
-
(4)
\nDisposals
-
-
4
-
-
-
4
\nCurrency translation di\ufb00erences
0
-
-
-
-
-
0
\nClosing balance
(1)
-
-
-
-
-
(1)
\nCarrying amount
\nClosing balance
47
315
169
256
248
568
1 602
\nEstimated useful life
3\u201310 years
3\u201315 years
3\u201310 years
3\u201316 years
3\u201310 years
\nAmortisation plan
Straight-line
Straight-line
Straight-line
Straight-line
Straight-line
\n1)
\nOther intangible assets consists mainly of customer relationships.
\n2)
\nAdditions in 2021 consists mainly of capitalisation of development projects of NOK 300 million of which NOK 228 million is related to Elkem's
\nbiocarbon initiative and battery projects.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17552": {
"value": "Principle Intangible assets are stated in the consolidated \ufb01nancial
\nstatements at cost less accumulated amortisation and
\naccumulated impairment losses. Intangible assets acquired
\nin business combinations are recognised at fair value at the
\nacquisition date. Intangible assets with a \ufb01nite useful life are
\namortised, using the straight-line method, commencing when
\nthe asset is available for use. Assets that are an integral part of
\na group of assets are amortised from the date the related asset
\ngroup as a whole is ready for its intended use. Such assets are
\nimpairment tested annually.
\nThe estimated useful lives are reviewed at the end of each
\nreporting period.
\nAn intangible asset is derecognised on disposal, or when the
\ngroup expects no future economic bene\ufb01ts to be derived from
\nits use. Gain or loss arising from derecognition of an intangible
\nasset, measured as the di\ufb00erence between the net disposal
\nproceeds and the carrying amount of the asset, is recognised
\nin other operating income or other operating expenses in the
\nstatement of pro\ufb01t or loss.
\nExpenditure on research activities is recognised as an expense
\nin the period in which it is incurred. An intangible asset arising
\nfrom an internal development project is recognised in the
\nstatement of \ufb01nancial position if the group can demonstrate
\ntechnical feasibility of completing the intangible asset, has the
\nintention to complete it, ability to use it, can demonstrate that
\nit will generate probable future economic bene\ufb01ts and the cost
\ncan be reliably measured. Expenditures related to research and
\ndevelopment activities, see note 11 Other operating expenses.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17575": {
"value": "Expenditure on research activities is recognised as an expense in the period in which it is incurred. An intangible asset arising
\nfrom an internal development project is recognised in the
\nstatement of \ufb01nancial position if the group can demonstrate
\ntechnical feasibility of completing the intangible asset, has the
\nintention to complete it, ability to use it, can demonstrate that
\nit will generate probable future economic bene\ufb01ts and the cost
\ncan be reliably measured. Expenditures related to research and
\ndevelopment activities, see note 11 Other operating expenses.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17984": {
"value": "18. GoodwillJudgements and estimates
\nThe fair value of an acquired entity's net identi\ufb01able
\nassets used to initially measure goodwill are dependent on
\nassumptions such as future cash \ufb02ows and discount rate. See
\nnote 4 Composition of the group.
\nJudgments and estimates for impairment of assets, see Note
\n19 Impairment assessment.
\nDetails of goodwill
\nAmounts in NOK million
2022
2021
\nOpening balance
941
919
\nCurrency translation di\ufb00erences
43
22
\nClosing balance
984
941
\nOrigin of goodwill per CGU
\n31 December 2022
\nAmounts in NOK million
Silicones
Silicon Products
Carbon Solutions
Total
\nElkem Silicones Guangdong Co., Ltd.
499
-
-
499
\nElkem Silicones Korea Co., Ltd
126
-
-
126
\nElkem Silicones
80
-
-
80
\nElkem Rana AS
-
40
-
40
\nElkem Nagpur
-
38
-
38
\nElkem Oil\ufb01eld Chemical FZCO
-
23
-
23
\nElkem Dron\ufb01eld Ltd.
-
16
-
16
\nElkem Materials Process Services BV
-
0
-
0
\nFerroveld JV
-
-
43
43
\nElkem Parti\u00e7ipac\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
-
-
8
8
\nElkem Carbon (China) Co., Ltd.
-
-
1
1
\nNEH LLC
-
93
17
110
\nTotal goodwill
705
209
69
984
Origin of goodwill per CGU
\n31 December 2021
\nAmounts in NOK million
Silicones
Silicon Products
Carbon Solutions
Total
\nElkem Silicones Guangdong Co., Ltd.
485
-
-
485
\nElkem Silicones Korea Co., Ltd
119
-
-
119
\nElkem Silicones
76
-
-
76
\nElkem Rana AS
-
40
-
40
\nElkem Nagpur
-
37
-
37
\nElkem Oil\ufb01eld Chemical FZCO
-
21
-
21
\nElkem Dron\ufb01eld Ltd.
-
16
-
16
\nElkem Materials Process Services BV
-
0
-
0
\nFerroveld JV
-
-
41
41
\nElkem Parti\u00e7ipac\u00f2es Ind\u00fastria e Com\u00e9rcio Limitada
-
-
7
7
\nElkem Carbon (China) Co., Ltd.
-
-
1
1
\nNEH LLC
-
83
15
98
\nTotal goodwill
680
197
64
941
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f17987": {
"value": "Principle Goodwill
\nGoodwill is initially measured as the excess of the cost of an
\nacquisition over the group's share of the fair values of the
\nacquired entity's net identi\ufb01able assets at the acquisition
\ndate. If the fair value of the group\u2019s interest in the net assets
\nof the acquired subsidiary exceeds the cost of the acquisition
\n(negative goodwill), the di\ufb00erences are recognised directly in
\nthe statement of pro\ufb01t or loss as other items. Goodwill is carried
\nat cost less accumulated impairment losses. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nAccounting principle for impairment of assets, see Note 19
\nImpairment assessment.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18181": {
"value": "19. Impairment assessmentsJudgements and estimates
\nThere is signi\ufb01cant judgment required to determine the CGU for
\nimpairment testing. For goodwill the determination of the CGU
\nis based on the level where synergies are expected to be realised
\nfollowing a business combination. The CGU for impairment
\ntesting of goodwill is determined to be the operating segments
\nas presented in note 6 Operating segments.
\nFor impairment testing of \ufb01xed, intangible and right of use
\nassets the CGU the lowest level that generates ingoing cash
\n\ufb02ows. This can be both a single plant or a combination of
\nplants depending on the facts and circumstances.
\nThe recoverable amounts of assets of CGUs subject to
\nimpairment testing are determined based on value-in-use
\ncalculations, which are based on estimated future cash \ufb02ows.
\nThe uncertainty in the cash \ufb02ows relates to future prices for
\nboth key input factors in the production and market prices for
\nthe sale of Elkem's products. There is uncertainty regarding
\nthese factors both for the next 12 months and for the rest
\nof the forecast period. The estimated future cash \ufb02ows are
\ndiscounted using a discount rate before tax. The estimation
\nuncertainty in the discount rate relates to the determination
\nof the risk free rate and the beta. Elkem have performed
\nsensitivity analysis in the impairment test to re\ufb02ect the
\nuncertainty in the estimates.
\n(a) Impairment test of goodwill
\nDiscounted cash \ufb02ow models are applied to determine the
\nvalue in use for the cash-generating unit. Key assumptions
\nused in the calculation of value in use are growth rate, EBITDA
\nlevels, capital expenditure and discount rates.
\nGrowth rates
\nThe expected growth rates for a cash-generating unit converge
\nfrom its current level experienced over the last few years, to
\nthe long-term growth level in the market in which the entity
\noperates. The growth rates used to extrapolate cash \ufb02ow
\nprojections beyond the explicit forecast period are based
\non management\u2019s past experience, assumptions in terms of
\nmarket share and expectations for the market development in
\nwhich the entity operates. Growth rate used in Elkem\u2019s DCF
\nmodels is 1.5% (2.0%).
\nEBITDA levels
\nEBITDA level represents the operating pro\ufb01t (loss) before
\ndepreciation and amortisation. The key assumptions used in
\nreaching the forecast \ufb01gures are sales prices, volume mix,
\noperating costs and productivity targets.
\nSales prices, volume and product mix:
The 2023 budget is
\nused as a basis for the forecast the next four years. Elkem
\nexperienced an increase in sales prices for most of Elkem\u2019s
\nproducts in the \ufb01rst part of the year, but prices declined in
\nthe latter part of 2022. For Elkem's Silicones business the
\nsales prices in China have been very volatile in 2022. In the
\nimpairment assessment Elkem has assumed sales prices will
\nnormalise and the price assumptions are below the current
\nmarket situation for Silicon Products and Carbon Solutions.
\nFor Silicones the assumption is an increase in volume and
\nprices compared to the current level, especially within specialty
\nproducts. There are no observable long-term market prices for
\nElkem\u2019s products, but there are external independent sources
\nsuch as CRU for the Silicon Products market that are used as a
\nbasis for the budget. Elkem works continuously to improve the
\nspecialty ratio and this is re\ufb02ected in the impairment models.
\nSales volumes are adjusted for necessary maintenance stops.
\nRaw materials and energy for smelting:
Most of Elkem\u2019s plants
\nhave long term energy contracts that covers their future need
\nof power. The contract prices is used in the estimate of future
\ncash \ufb02ows. For Elkem\u2019s spot exposure observable market
\nprices are used adjusted for CPI. Raw material prices are based
\non 2023 budget and are adjusted to re\ufb02ect expected volume /
\nmix changes.
\nClimate related risk:
The calculation of value in use re\ufb02ects
\nthe expected development in both the cost of CO
\n2
\nquotas and
\nthe income from CO
\n2
\ncompensation going forward in line with
\nthe current regulatory framework. Outside of this no climate
\nrelated legislation has been passed at the current time that
\nwill impact the group. However, there is an expectation that
\nany increase in cost due to new legislation will be covered by
\nincreased sales prices, full or partial compensation by incentive
\nschemes or increased e\ufb00ectiveness resulting in limited impact
\non operating cash \ufb02ows.
\nOther operating costs:
These are estimated based on the
\ncurrent level and adjusted for committed operational e\ufb03ciency
\nprograms. Changes to the outcome of these initiatives may
\na\ufb00ect future estimated EBITDA levels.
\nCapital expenditure (\u201cCapex\u201d)
\nA normalised capex is assumed in the long run and are based
\non today\u2019s maintenance level and technology. Estimated
\ncapital expenditures do not include capital expenditures that
\nsigni\ufb01cantly enhance the current performance, as such e\ufb00ects
\nare not included in the cash \ufb02ow projections.
\nCurrency rates and in\ufb02ation
\nThe value-in-use calculation is performed in the functional
\ncurrency for the CGU. The currency rates used to translate
\nfuture incomes and expenses in other currencies than the
\nfunctional currency are based on o\ufb03cial forward rates from
\nReuters. The long-term in\ufb02ation (CPI) are based on external
\npredictions and re\ufb02ect the CPI which each CGU is located.
\nDiscount rates
\nThe required rate of return is calculated by the WACC method.
\nThe cost of a company's equity and liabilities, weighted to
\nre\ufb02ect its capital structure of 50:50, respectively, derive
\nfrom its weighted average cost of capital. The WACC rates
\nare based on 10-year risk-free interest rate for the relevant
\ncurrency of the CGU. The rates are adjusted for in\ufb02ation
\ndi\ufb00erential and country risk premium. The discount rates also
\ntake into account the debt premium, market risk premium,
\ncorporate tax rate and asset beta. The WACC are adjusted for
\ntax to determine a pre-tax rate that is used for discounting the
\nestimated future cash \ufb02ows.
\nGoodwill acquired through business combination are allocated
\nto the operating segments Silicones, Silicon Products and
\nCarbon Solutions. Impairment testing of goodwill is done for
\na group of CGUs that is included in the respective operating
\nsegments. The following table give an overview of carrying
\namount of goodwill allocated to each of the operating
\nsegments. The table also includes the pre-tax discount rate for
\neach operating segment.
Cash Generating Units
\nCarrying amount
Pre-tax discount rate
\nAmounts in NOK million
31 December 2022
31 December 2021
31 December 2022
31 December 2021
\nSilicones
705
680
10.5 %
9.2%
\nSilicon Products
209
197
10.1 %
8.5%
\nCarbon Solutions
69
64
10.2 %
9.6%
\nGoodwill
984
941
\nSensitivity for test of goodwill
\n\u2192
An increase of 4% points in discount rate, for each
\noperating segment's discount rate, will not result
\nin impairment.
\n\u2192
A growth rate equal to zero for the terminal period, for
\nthe cash-\ufb02ows for each operating segment will not
\nresult in impairment.
\n\u2192
A decrease in the forecasted EBITDA levels of 30% for
\nthe cash-\ufb02ows for each operating segment will not
\nresult in impairment.
\n(b) Impairment test for intangible assets, property plant
\nand equipment and right-of-use assets
\nFor the assets with impairment indicators the recoverable
\namount was determined estimating the value in use of the
\nassets, see the goodwill section above for assumption used.
\nIn 2022 Elkem has identi\ufb01ed impairment indicators for one
\nof its CGUs, see below. The CGU was not assessed to be
\nimpaired, as the recoverable amount exceed the carrying
\namount for the CGUs.
\nIn 2021 Elkem identi\ufb01ed impairment indicators within the
\nSilicones segment, Silicones excluding Jiangxi Bluestar
\nXinghuo Silicones, Elkem Silicon Materials (Lanzhou), Elkem
\nSilicones Korea and Elkem Silicones Guangdong, which are
\ntested separately. The CGU have performed better in 2022
\nthan in 2021, and no new impairment indicators are identi\ufb01ed.
\nElkem Silicones Guangdong
\nElkem has identi\ufb01ed impairment indicators within Elkem
\nSilicones Guangdong. The total carrying amount of the CGU is
\nNOK 187 million. The impairment indicators are largely due to
\ndeterioration of EBITDA margins in 2022 due to signi\ufb01cantly
\nincreased raw material prices and limited pass-through
\nopportunities for the specialty part of their sales portfolio. Raw
\nmaterial prices have come down and is expected to remain at a
\nlower level with stable sales prices ensuring improved margins
\ngoing forward.
\nThe assumptions applied follow the assumptions as applied
\nfor the goodwill, see section above. It is assumed stable
\nproduction and sales prices and somewhat reduced cost in
\n2023 compared to 2022. The contribution margin for the
\nfollowing years are on the same level as for 2022. Pre-tax
\ndiscount rate used in the DCF calculation for the CGU is 9.5%.
\nAn increase of 4% points in discount rate, a growth rate used
\nto extrapolate the cash-\ufb02ows after \ufb01ve years equal to zero or a
\ndecrease in forecasted EBITDA of 30% points, will not result in
\nan impairment for the CGU.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18183": {
"value": "Principle
\nImpairment exists when the carrying value of an asset or
\ncash generating unit (CGU) exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and
\nits value in use. The fair value less cost of disposal calculation
\nis based on data from binding sales transactions, conducted
\nat arm\u2019s length for similar assets or observable market prices
\nless incremental costs of disposing the asset. The value in
\nuse calculation is based on a DCF model. The cash \ufb02ows are
\nderived from the budget for the next \ufb01ve years and do not
\ninclude restructuring activities that Elkem is not yet committed
\nto or signi\ufb01cant future investments that will enhance the
\nperformance of the assets of the CGU being tested. A long-
\nterm growth rate is calculated and applied to project future
\ncash \ufb02ows after the \ufb01fth year.
\nA CGU is the smallest group of assets that generates cash
\nin\ufb02ows from continuing use that are largely independent of the
\ncash in\ufb02ows of other assets.
\nIndicators of impairment will typically be changes in
\ntechnological development, changes in market conditions and
\nchanges in the competitive situation.
\nImpairment loss and reversal of previous impairment losses
\nare recognised as impairment losses in the statement of
\npro\ufb01t or loss.
\nGoodwill
\nGoodwill arising from a business combination is allocated
\nto CGUs or groups of CGUs that are expected to bene\ufb01t
\nfrom the synergies of the combination. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nIntangible assets, property plant and equipment and
\nright-of-use assets
\nIntangible assets with inde\ufb01nite useful lives are tested for
\nimpairment annually, or more frequently when there is an
\nindication of impairment. For the other non-\ufb01nancial assets
\nElkem assess, at each reporting date, whether there is
\nan indication that an asset may by impaired. A previously
\nrecognised impairment loss is reversed only if there has been
\na change in the assumptions used to determine the asset\u2019s
\nrecoverable amount since the last impairment loss was
\nrecognised. The reversal is limited so that the carrying amount
\nof the asset does not exceed its recoverable amount, nor
\nexceed the carrying amount that would have been determined,
\nnet of depreciation, had no impairment loss been recognised
\nfor the asset in prior years.
Elkem calculates the expected credit losses (ECL) for trade
\nreceivables and bills receivables in accordance with the
\nsimpli\ufb01ed approach. All expected cash \ufb02ows, including cash
\n\ufb02ows from credit insurance contracts where such contracts
\nare deemed to be an integral part of the transactions, is taken
\ninto consideration. The assessment is based on historical
\nexperienced losses adjusted for forward-looking estimates on
\nchanges in risk / probability that credit losses will occur for the
\ndi\ufb00erent customer groups /segments where applicable.
If there is objective evidence of impairment, or if there is a risk
\nthat the group may not recover the contractual amounts at the
\ncontractual maturity dates, an impairment loss is recognised
\nin the statement of pro\ufb01t or loss. The provision is equal to the
\ndi\ufb00erence between the carrying amount and the estimated
\nfuture recoverable cash \ufb02ows.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18185": {
"value": "Principle Impairment exists when the carrying value of an asset or
\ncash generating unit (CGU) exceeds its recoverable amount,
\nwhich is the higher of its fair value less costs of disposal and
\nits value in use. The fair value less cost of disposal calculation
\nis based on data from binding sales transactions, conducted
\nat arm\u2019s length for similar assets or observable market prices
\nless incremental costs of disposing the asset. The value in
\nuse calculation is based on a DCF model. The cash \ufb02ows are
\nderived from the budget for the next \ufb01ve years and do not
\ninclude restructuring activities that Elkem is not yet committed
\nto or signi\ufb01cant future investments that will enhance the
\nperformance of the assets of the CGU being tested. A long-
\nterm growth rate is calculated and applied to project future
\ncash \ufb02ows after the \ufb01fth year.
\nA CGU is the smallest group of assets that generates cash
\nin\ufb02ows from continuing use that are largely independent of the
\ncash in\ufb02ows of other assets.
\nIndicators of impairment will typically be changes in
\ntechnological development, changes in market conditions and
\nchanges in the competitive situation.
\nImpairment loss and reversal of previous impairment losses
\nare recognised as impairment losses in the statement of
\npro\ufb01t or loss.
\nGoodwill
\nGoodwill arising from a business combination is allocated
\nto CGUs or groups of CGUs that are expected to bene\ufb01t
\nfrom the synergies of the combination. Goodwill is tested
\nfor impairment annually, or more frequently when there is an
\nindication of impairment. An impairment loss recognised for
\ngoodwill is not reversed in subsequent periods.
\nIntangible assets, property plant and equipment and
\nright-of-use assets
\nIntangible assets with inde\ufb01nite useful lives are tested for
\nimpairment annually, or more frequently when there is an
\nindication of impairment. For the other non-\ufb01nancial assets
\nElkem assess, at each reporting date, whether there is
\nan indication that an asset may by impaired. A previously
\nrecognised impairment loss is reversed only if there has been
\na change in the assumptions used to determine the asset\u2019s
\nrecoverable amount since the last impairment loss was
\nrecognised. The reversal is limited so that the carrying amount
\nof the asset does not exceed its recoverable amount, nor
\nexceed the carrying amount that would have been determined,
\nnet of depreciation, had no impairment loss been recognised
\nfor the asset in prior years.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18443": {
"value": "20. InventoriesJudgements and estimates
\nThe assessment of net realisable value for the inventory is
\nbased on estimated market prices in the period the inventory is
\nexpected to be sold. The actual market price will di\ufb00er from the
\nestimates used.
\nDetails of inventory
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Cost price
Provision
Net total
Cost price
Provision
Net total
\nRaw materials
3 322
(12)
3 310
2 767
(74)
2 693
\nSemi-\ufb01nished goods
402
(41)
361
343
(41)
302
\nFinished goods
6 035
(142)
5 893
4 198
(63)
4 135
\nOperating materials and spare parts
792
(31)
761
610
(23)
586
\nTotal inventories
10 550
(226)
10 325
7 918
(202)
7 716
\nThis year's change in provision for impairment of inventory, a
\nloss of NOK 14 million (loss of NOK 87 million), is recognised as
\na part of raw materials and energy for production.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInventoriesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18446": {
"value": "Principle Inventories are measured at the lower of cost and net realisable
\nvalue. Inventory consists of raw materials, semi-\ufb01nished
\ngoods and \ufb01nished goods, in addition to operating materials
\nand spare parts that do not meet the de\ufb01nition of property,
\nplant and equipment. Raw materials, and operating materials
\nand spare parts, are recognised at cost of purchase including
\ntransport and handling to their present location. Finished and
\nsemi-\ufb01nished goods are measured at cost of raw materials,
\nenergy for production and cost of conversion up to the actual
\ncompletion stage. Cost of conversion comprise operating
\nexpenses directly related to production of the products and
\nan allocation of direct \ufb01xed operating expenses. The cost of
\nCO
\n2
\nallowances that Elkem needs to purchase in addition to
\nallowances received from the government (note 8), are based
\non estimated production / emissions for the year. The cost is
\nallocated to cost of conversion proportionally over the year as
\nthe number of allocated allowances will not be revised unless
\nthere is a substantial change in the production level at the
\nplants. Net realisable value represents the estimated selling
\nprice for inventories less estimated costs of completion and
\nvariable selling expenses.
\nCost of goods sold is recognised in di\ufb00erent lines in the
\nstatement of pro\ufb01t or loss based on nature; raw materials and
\nenergy for production, employee bene\ufb01ts and other operating
\nexpenses. Actual cost of conversion related to goods sold is
\nreported net of change in cost of conversion in inventory and is
\nincluded in other operating expenses.
\nEntities within the group sell goods to other group entities,
\nconsequently \ufb01nished goods from one entity become raw
\nmaterials or semi-\ufb01nished goods for another group entity. The
\nclassi\ufb01cation of goods in the group's statement of \ufb01nancial
\nposition is based on the separate entity's classi\ufb01cation.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18548": {
"value": "21. Trade receivables Judgements and estimates
\nJudgement is applied when determining expected credit loss
\non trade receivables. The judgement is based on experienced
\nlosses in the past and expectations about future economic
\nconditions for the di\ufb00erent customer groups / business areas.
\nCalculation of expected credit losses takes into account cash
\n\ufb02ows from credit insurance contracts when such contracts
\nare deemed to be an integral part of the transaction. Elkem
\ngenerally secures its trade receivables by credit insurance
\nfrom a reputable credit insurance company, see note 27
\nFinancial risk.
\nDetails of trade receivables
\nAmounts in NOK million
31.12.2022
31.12.2021
\nTrade receivables
3 208
3 343
\nTrade receivables, related parties (note 32)
19
33
\nAllowance for expected credit losses
(65)
(69)
\nBills receivable
1 086
990
\nTotal trade receivables
4 248
4 297
\nElkem has entered into factoring agreements with a
\ncredit limit of a total of EUR 162 million (EUR 127), NOK
\n1,698 million (NOK 1,265 million), to sell on continuing
\nbasis trade receivables that meet speci\ufb01c conditions. The
\nagreements include a recourse clause for maximum 5%
\n-10%, depending on the agreement, of the face value of the
\nindividual receivables sold. The non-recourse amount of the
\nreceivables sold is derecognised and the recourse amount
\nis recognised as a current liability when the title to the
\nreceivables is transferred. As of 31 December 2022, NOK 106
\nmillion (NOK 57 million) is recognised as current liability (see
\nnote 24 Provisions and other liabilities). In addition, Elkem
\nhas entered into factoring agreements without recourse for
\nsome speci\ufb01c customers. Receivables that are sold without
\nrecourse are derecognised in its entirety when the title is
\ntransferred, as there is no remaining credit risk after transfer.
\nAs at 31 December 2022 NOK 1,777 million (NOK 1,467
\nmillion) of Elkem\u2019s trade receivables are derecognised under
\nthese agreements.
\nBills receivable consist of NOK 1,086 million (NOK 989 million)
\nbank acceptance bills and NOK 0 million (NOK 2 million)
\ncommercial acceptance bills.
\nA total of NOK 4,033 million (NOK 4,253 million) in unmatured
\nbills receivables are endorsed to a third party where the \ufb01nal
\npayment of the bill is guaranteed by a highly rated \ufb01nancial
\ninstitution. Elkem will only su\ufb00er losses on an endorsed bill if
\nthe bank that have issued the bill or all companies that have
\nendorsed the bill before Elkem goes bankrupt. These bills are
\nderecognised as there is very low remaining credit risk related
\nto endorsed bills.
\nAnalysis of gross trade receivables by age, presented based on the due date
\nAmounts in NOK million
31.12.2022
31.12.2021
\nNot due
2 392
2 883
\nOverdue by:
\n1\u201330 days
527
352
\n31\u201360 days
92
48
\n61\u201390 days
124
27
\nMore than 90 days
91
66
\nTotal trade receivables
\n1)
\n3 227
3 376
\n1)
\nBills receivable is not included in the ageing table
\nMovements in allowance for expected credit losses
\nAmounts in NOK million
2022
2021
\nOpening balance
(69)
(92)
\nBusiness combinations (note 4)
-
-
\nRealised losses during the year / Received on earlier losses
5
12
\nProvision for expected credit losses
(27)
(10)
\nReversal of earlier provisions
29
24
\nCurrency translation di\ufb00erences
(2)
(4)
\nClosing balance
(65)
(69)
\nAnalysis of allowance for expected credit losses, presented
\nbased on related trade receivables
\nAmounts in NOK million
31.12.2022
31.12.2021
\nNot due
(13)
(14)
\nOverdue by:
\n1\u201330 days
(1)
(1)
\n31\u201360 days
(0)
(0)
\n61\u201390 days
(3)
(4)
\nMore than 90 days
(48)
(50)
\nTotal allowance for expected credit losses
(65)
(69)
Details of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18549": {
"value": "21. Trade receivablesJudgements and estimates
\nJudgement is applied when determining expected credit loss
\non trade receivables. The judgement is based on experienced
\nlosses in the past and expectations about future economic
\nconditions for the di\ufb00erent customer groups / business areas.
\nCalculation of expected credit losses takes into account cash
\n\ufb02ows from credit insurance contracts when such contracts
\nare deemed to be an integral part of the transaction. Elkem
\ngenerally secures its trade receivables by credit insurance
\nfrom a reputable credit insurance company, see note 27
\nFinancial risk.
\nDetails of trade receivables
\nAmounts in NOK million
31.12.2022
31.12.2021
\nTrade receivables
3 208
3 343
\nTrade receivables, related parties (note 32)
19
33
\nAllowance for expected credit losses
(65)
(69)
\nBills receivable
1 086
990
\nTotal trade receivables
4 248
4 297
\nElkem has entered into factoring agreements with a
\ncredit limit of a total of EUR 162 million (EUR 127), NOK
\n1,698 million (NOK 1,265 million), to sell on continuing
\nbasis trade receivables that meet speci\ufb01c conditions. The
\nagreements include a recourse clause for maximum 5%
\n-10%, depending on the agreement, of the face value of the
\nindividual receivables sold. The non-recourse amount of the
\nreceivables sold is derecognised and the recourse amount
\nis recognised as a current liability when the title to the
\nreceivables is transferred. As of 31 December 2022, NOK 106
\nmillion (NOK 57 million) is recognised as current liability (see
\nnote 24 Provisions and other liabilities). In addition, Elkem
\nhas entered into factoring agreements without recourse for
\nsome speci\ufb01c customers. Receivables that are sold without
\nrecourse are derecognised in its entirety when the title is
\ntransferred, as there is no remaining credit risk after transfer.
\nAs at 31 December 2022 NOK 1,777 million (NOK 1,467
\nmillion) of Elkem\u2019s trade receivables are derecognised under
\nthese agreements.
\nBills receivable consist of NOK 1,086 million (NOK 989 million)
\nbank acceptance bills and NOK 0 million (NOK 2 million)
\ncommercial acceptance bills.
\nA total of NOK 4,033 million (NOK 4,253 million) in unmatured
\nbills receivables are endorsed to a third party where the \ufb01nal
\npayment of the bill is guaranteed by a highly rated \ufb01nancial
\ninstitution. Elkem will only su\ufb00er losses on an endorsed bill if
\nthe bank that have issued the bill or all companies that have
\nendorsed the bill before Elkem goes bankrupt. These bills are
\nderecognised as there is very low remaining credit risk related
\nto endorsed bills.
\nAnalysis of gross trade receivables by age, presented based on the due date
\nAmounts in NOK million
31.12.2022
31.12.2021
\nNot due
2 392
2 883
\nOverdue by:
\n1\u201330 days
527
352
\n31\u201360 days
92
48
\n61\u201390 days
124
27
\nMore than 90 days
91
66
\nTotal trade receivables
\n1)
\n3 227
3 376
\n1)
\nBills receivable is not included in the ageing table
\nMovements in allowance for expected credit losses
\nAmounts in NOK million
2022
2021
\nOpening balance
(69)
(92)
\nBusiness combinations (note 4)
-
-
\nRealised losses during the year / Received on earlier losses
5
12
\nProvision for expected credit losses
(27)
(10)
\nReversal of earlier provisions
29
24
\nCurrency translation di\ufb00erences
(2)
(4)
\nClosing balance
(65)
(69)
\nAnalysis of allowance for expected credit losses, presented
\nbased on related trade receivables
\nAmounts in NOK million
31.12.2022
31.12.2021
\nNot due
(13)
(14)
\nOverdue by:
\n1\u201330 days
(1)
(1)
\n31\u201360 days
(0)
(0)
\n61\u201390 days
(3)
(4)
\nMore than 90 days
(48)
(50)
\nTotal allowance for expected credit losses
(65)
(69)
22. Other assets Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18552": {
"value": "Principle Trade and bills receivables are initially recognised at transaction
\nprice, which in most cases corresponds to their nominal amount.
\nThe carrying amount is subsequently measured at amortised
\ncost using the e\ufb00ective interest rate method, less any provision
\nfor expected credit losses. Current receivables with no stated
\ninterest rate are recognised at their nominal amount.
\nA bill receivable is a document where the customer formally
\nagrees to pay for delivered goods or services at maturity
\ndate and are normally guaranteed by a \ufb01nancial institution.
\nA bill receivable is transferable and can be used to pay trade
\npayables (endorsed) or be settled in cash with a \ufb01nance
\ninstitution (discounted). The bills receivables-document
\ne\ufb00ectively replaces, for the speci\ufb01ed amount, the trade
\nreceivable exchanged for the bill. Bills receivables (mainly bank
\nacceptance bills that are guaranteed by a \ufb01nancial institution)
\nare primarily used by Elkem's Chinese entities and the duration
\nis normally below six months.
\nTrade receivables are derecognised when settled, replaced
\nby bills receivable or when transferred to a third party and
\nthe group has no further risk related to the receivables. Bills
\nreceivables are derecognised when they are settled on due
\ndate or when the risk and reward are transferred to a third
\nparty. Transferral to a third party can be done by discounting
\na bill receivable before due date or by endorsing the bill
\nreceivable, meaning that it is accepted by the supplier as
\npayment for goods or services received.
\nElkem calculates the expected credit losses (ECL) for trade
\nreceivables and bills receivables in accordance with the
\nsimpli\ufb01ed approach. All expected cash \ufb02ows, including cash
\n\ufb02ows from credit insurance contracts where such contracts
\nare deemed to be an integral part of the transactions, is taken
\ninto consideration. The assessment is based on historical
\nexperienced losses adjusted for forward-looking estimates on
\nchanges in risk / probability that credit losses will occur for the
\ndi\ufb00erent customer groups /segments where applicable.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18581": {
"value": "Elkem calculates the expected credit losses (ECL) for trade
\nreceivables and bills receivables in accordance with the
\nsimpli\ufb01ed approach. All expected cash \ufb02ows, including cash
\n\ufb02ows from credit insurance contracts where such contracts
\nare deemed to be an integral part of the transactions, is taken
\ninto consideration. The assessment is based on historical
\nexperienced losses adjusted for forward-looking estimates on
\nchanges in risk / probability that credit losses will occur for the
\ndi\ufb00erent customer groups /segments where applicable.
If there is objective evidence of impairment, or if there is a risk
\nthat the group may not recover the contractual amounts at the
\ncontractual maturity dates, an impairment loss is recognised
\nin the statement of pro\ufb01t or loss. The provision is equal to the
\ndi\ufb00erence between the carrying amount and the estimated
\nfuture recoverable cash \ufb02ows.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18742": {
"value": "22. Other assets Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
Details of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18743": {
"value": "22. Other assets Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18744": {
"value": "22. Other assets Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
23. Interest-bearing assets and liabilities Details of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
\nInterest-bearing liabilities by currency
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Currency amount
NOK
Currency amount
NOK
\nEUR
630
6 620
608
6 083
\nUSD
3
31
4
38
\nNOK
2 753
2 753
3 038
3 038
\nCNY
1 963
2 809
2 333
3 240
\nOther currencies
-
66
-
77
\nTotal interest-bearing liabilities
12 278
12 476
\nMaturity of interest-bearing liabilities
\n31 December 2022
\n2028
\nAmounts in NOK million
2023
2024
2025
2026
2027
and later
Total
\nLease liabilities
103
74
57
47
40
257
578
\nLoans from external parties, other than bank
10
916
1 234
942
500
105
3 706
\nBank \ufb01nancing
74
9
39
63
5 335
755
6 276
\nBills payable
1 742
1 742
\nAccrued interest
17
17
\nTotal interest-bearing liabilities excluding prepaid loan fees
1 946
1 000
1 330
1 052
5 875
1 117
12 320
\nPrepaid loan fees
(42)
\nTotal interest-bearing liabilities
12 278
\nMaturity of interest-bearing liabilities
\n31 December 2021
\n2027
\nAmounts in NOK million
2022
2023
2024
2025
2026
and later
Total
\nLease liabilities
116
101
80
64
53
387
801
\nLoans from external parties, other than bank
1 264
7
1 118
1 000
500
500
4 389
\nBank \ufb01nancing
572
4 398
206
3
3
4
5 186
\nBills payable
2 096
2 096
\nAccrued interest
20
20
\nTotal interest-bearing liabilities excluding prepaid loan fees
4 067
4 506
1 404
1 067
557
891
12 492
\nPrepaid loan fees
(16)
\nTotal interest-bearing liabilities
12 476
Loan agreements
\nThe main non-current loan agreements as of 31 December
\n2022 are a term loan of EUR 500 million (EUR 400 million), a
\nterm loan of EUR 0 million (EUR 5 million), issued bond loans
\nof a total of NOK 2,500 million (NOK 2,500 million) and a
\nseries of loans issued in the Schuldschein market of EUR 113
\nmillion (EUR 61 million). The main loan agreements are granted
\nto Elkem ASA. In addition Elkem Silicones Xinghuo \ufb01nancing
\nis parts of its upgrade of property, plant and equipment with a
\nunsecured term loan of CNY 650 million (CNY 0 million). The
\ninterest rates for the non-current loan agreements are in the
\nrange of 4.38% to 4.78% for the bond loans, 1.82% to 4.5% for
\nthe loans in the Schuldschein market and 3.45% to 3.95% for
\nthe PPE loans. For the term loan the interest rate is 3.44%.
\nElkem placed EUR 200 million in the Schuldschein market
\non 4 and 6-year tenors in December 2022, where of EUR
\n52 million was disbursed in December 2022, while EUR 148
\nmillion was disbursed in January 2023. In June Elkem signed
\nnew bank facilities with a term loan of EUR 500 million and a
\ncredit facility of EUR 500 million, re\ufb01niancing the term loan
\nof EUR 400 million from prior year. Later in 2022 the facilities
\nwas linked to two sustainability KPIs, KPI 1 Lost Time Injury
\nRate and KPI 2 \u2013 Product Group Carbon Footprint. The margin
\nof the RCF and term loan shall be reduced by 0.025% if both
\nKPIs are met, and increased by 0.025% if none of the KPIs are
\nmet. If one KPI is met there shall be no change to the margin.
\nThe sustainability KPIS will \ufb01rst be tested for 2023 with e\ufb00ect
\nfrom 2024.
\nOne of the loans issued in the Schuldschein market (EUR 15
\nmillion), is a \ufb01xed rate loan with a \ufb01xed rate of 1.8160%. Given
\nthe market conditions as at 31 December 2022 the loan would
\nhave been approximately EUR 0.7 million lower, due to the
\ndi\ufb00erence between \ufb01xed and market rate.
\nThe bond loans are listed on Oslo B\u00f8rs. There are no covenants
\nrelated to the bond loans. There are no material di\ufb00erences
\nbetween fair value of the bond loans and book values.
\nThe loan facilities are unsecured, but part of the loans has
\n\ufb01nancial covenants related to them, see below.
\nCredit facilities
\nAs of 31 December 2022 the group is granted credit facilities
\nof NOK 6,356 million. At 31 December 2022 NOK 14 million
\nis drawn.
\nAs of 31 December 2021 the group is granted credit facilities
\nof NOK 3,144 million. The credit facilities are undrawn at 31
\nDecember 2021.
\nThe main revolving credit facilities are granted to Elkem
\nASA, but the facilities can be utilised by Elkem ASA and its
\nsubsidiaries. The main facilities amount to EUR 500 million,
\nCNY 199 million, CNY 300 million and NOK 250 million
\nrespectively. See note 27 Financial risk, section (c) liquidity risk
\nfor more information.
\nHedging
\nSome / part of loans are designated as a hedging instrument,
\nsee note 26 Hedging.
\nLoan covenant
\nElkem has \ufb01nancial covenants related to its main bank
\n\ufb01nancing and parts of loans from external parties, other than
\nbank (Schuldschein), in Norway. The interest-bearing loans in
\nChina have no connected \ufb01nancial covenants. In addition to
\nthe covenants on these loan facilities in Norway there are loan
\ncovenants related to the credit facilities in Elkem Metal Canada
\nInc of CAD 2 million. Elkem and Elkem Metal Canada Inc. are
\ncompliant with their covenants at the end of 2022 and 2021.
\nThe covenants for the interest-bearing loan facilities in Norway
\nrelate to the \ufb01nancial performance of Elkem and are as
\nspeci\ufb01ed in the table below.
\nCovenant Elkem related to drawn loan of NOK 6,501 million
\n(NOK 5,971 million) in Elkem ASA
\nAmounts in NOK million
31.12.2022
31.12.2021
Loan covenant
\nEquity ratio
55 %
47 %
> 30%
\nInterest cover ratio
58.38
37.33
> 4.00
\nMovements in interest-bearing liabilities 2022
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Acquisition
Currency
\nReceipts/ remeasurements
/ Disposal of
translation
\nAmounts in NOK million
31.12.2021
Payments
and terminations
subsidiaries Reclassi\ufb01cation
di\ufb00erences
31.12.2022
\nLease liabilities
685
-
118
(218)
(117)
8
475
\nLoans from external parties
3 125
547
-
-
(9)
34
3 697
\nBank \ufb01nancing
4 615
902
-
650
(189)
223
6 202
\nTotal movements non-current
8 425
1 449
118
432
(315)
266
10 374
\nLease liabilities
116
(116)
-
(20)
117
5
103
\nLoans from external parties
1 264
(1 328)
-
-
9
64
10
\nBank \ufb01nancing
572
(710)
-
10
189
13
74
\nTotal movements current
1 952
(2 153)
-
(9)
315
82
187
\nTotal
10 376
(704)
118
423
-
348
10 561
\nMovements in interest-bearing liabilities 2021
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Currency
\nReceipts/
remeasurements
translation
\nAmounts in NOK million
31.12.2020
Payments
and terminations
Reclassi\ufb01cation
di\ufb00erences
31.12.2021
\nLease liabilities
566
-
258
(138)
(1)
685
\nLoans from external parties
1 996
2 464
-
(1 266)
(69)
3 125
\nBank \ufb01nancing
4 652
132
-
(5)
(164)
4 615
\nTotal movements non-current
7 214
2 596
258
(1 409)
(233)
8 425
\nLease liabilities
97
(118)
-
138
(1)
116
\nLoans from external parties
2 407
(2 373)
-
1 266
(36)
1 264
\nBank \ufb01nancing
762
(226)
-
5
31
572
\nTotal movements current
3 266
(2 717)
-
1 409
(6)
1 952
\nTotal movements
10 479
(122)
258
-
(239)
10 376
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18745": {
"value": "22. Other assets Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
23. Interest-bearing assets and liabilities Details of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
\nInterest-bearing liabilities by currency
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Currency amount
NOK
Currency amount
NOK
\nEUR
630
6 620
608
6 083
\nUSD
3
31
4
38
\nNOK
2 753
2 753
3 038
3 038
\nCNY
1 963
2 809
2 333
3 240
\nOther currencies
-
66
-
77
\nTotal interest-bearing liabilities
12 278
12 476
\nMaturity of interest-bearing liabilities
\n31 December 2022
\n2028
\nAmounts in NOK million
2023
2024
2025
2026
2027
and later
Total
\nLease liabilities
103
74
57
47
40
257
578
\nLoans from external parties, other than bank
10
916
1 234
942
500
105
3 706
\nBank \ufb01nancing
74
9
39
63
5 335
755
6 276
\nBills payable
1 742
1 742
\nAccrued interest
17
17
\nTotal interest-bearing liabilities excluding prepaid loan fees
1 946
1 000
1 330
1 052
5 875
1 117
12 320
\nPrepaid loan fees
(42)
\nTotal interest-bearing liabilities
12 278
\nMaturity of interest-bearing liabilities
\n31 December 2021
\n2027
\nAmounts in NOK million
2022
2023
2024
2025
2026
and later
Total
\nLease liabilities
116
101
80
64
53
387
801
\nLoans from external parties, other than bank
1 264
7
1 118
1 000
500
500
4 389
\nBank \ufb01nancing
572
4 398
206
3
3
4
5 186
\nBills payable
2 096
2 096
\nAccrued interest
20
20
\nTotal interest-bearing liabilities excluding prepaid loan fees
4 067
4 506
1 404
1 067
557
891
12 492
\nPrepaid loan fees
(16)
\nTotal interest-bearing liabilities
12 476
Loan agreements
\nThe main non-current loan agreements as of 31 December
\n2022 are a term loan of EUR 500 million (EUR 400 million), a
\nterm loan of EUR 0 million (EUR 5 million), issued bond loans
\nof a total of NOK 2,500 million (NOK 2,500 million) and a
\nseries of loans issued in the Schuldschein market of EUR 113
\nmillion (EUR 61 million). The main loan agreements are granted
\nto Elkem ASA. In addition Elkem Silicones Xinghuo \ufb01nancing
\nis parts of its upgrade of property, plant and equipment with a
\nunsecured term loan of CNY 650 million (CNY 0 million). The
\ninterest rates for the non-current loan agreements are in the
\nrange of 4.38% to 4.78% for the bond loans, 1.82% to 4.5% for
\nthe loans in the Schuldschein market and 3.45% to 3.95% for
\nthe PPE loans. For the term loan the interest rate is 3.44%.
\nElkem placed EUR 200 million in the Schuldschein market
\non 4 and 6-year tenors in December 2022, where of EUR
\n52 million was disbursed in December 2022, while EUR 148
\nmillion was disbursed in January 2023. In June Elkem signed
\nnew bank facilities with a term loan of EUR 500 million and a
\ncredit facility of EUR 500 million, re\ufb01niancing the term loan
\nof EUR 400 million from prior year. Later in 2022 the facilities
\nwas linked to two sustainability KPIs, KPI 1 Lost Time Injury
\nRate and KPI 2 \u2013 Product Group Carbon Footprint. The margin
\nof the RCF and term loan shall be reduced by 0.025% if both
\nKPIs are met, and increased by 0.025% if none of the KPIs are
\nmet. If one KPI is met there shall be no change to the margin.
\nThe sustainability KPIS will \ufb01rst be tested for 2023 with e\ufb00ect
\nfrom 2024.
\nOne of the loans issued in the Schuldschein market (EUR 15
\nmillion), is a \ufb01xed rate loan with a \ufb01xed rate of 1.8160%. Given
\nthe market conditions as at 31 December 2022 the loan would
\nhave been approximately EUR 0.7 million lower, due to the
\ndi\ufb00erence between \ufb01xed and market rate.
\nThe bond loans are listed on Oslo B\u00f8rs. There are no covenants
\nrelated to the bond loans. There are no material di\ufb00erences
\nbetween fair value of the bond loans and book values.
\nThe loan facilities are unsecured, but part of the loans has
\n\ufb01nancial covenants related to them, see below.
\nCredit facilities
\nAs of 31 December 2022 the group is granted credit facilities
\nof NOK 6,356 million. At 31 December 2022 NOK 14 million
\nis drawn.
\nAs of 31 December 2021 the group is granted credit facilities
\nof NOK 3,144 million. The credit facilities are undrawn at 31
\nDecember 2021.
\nThe main revolving credit facilities are granted to Elkem
\nASA, but the facilities can be utilised by Elkem ASA and its
\nsubsidiaries. The main facilities amount to EUR 500 million,
\nCNY 199 million, CNY 300 million and NOK 250 million
\nrespectively. See note 27 Financial risk, section (c) liquidity risk
\nfor more information.
\nHedging
\nSome / part of loans are designated as a hedging instrument,
\nsee note 26 Hedging.
\nLoan covenant
\nElkem has \ufb01nancial covenants related to its main bank
\n\ufb01nancing and parts of loans from external parties, other than
\nbank (Schuldschein), in Norway. The interest-bearing loans in
\nChina have no connected \ufb01nancial covenants. In addition to
\nthe covenants on these loan facilities in Norway there are loan
\ncovenants related to the credit facilities in Elkem Metal Canada
\nInc of CAD 2 million. Elkem and Elkem Metal Canada Inc. are
\ncompliant with their covenants at the end of 2022 and 2021.
\nThe covenants for the interest-bearing loan facilities in Norway
\nrelate to the \ufb01nancial performance of Elkem and are as
\nspeci\ufb01ed in the table below.
\nCovenant Elkem related to drawn loan of NOK 6,501 million
\n(NOK 5,971 million) in Elkem ASA
\nAmounts in NOK million
31.12.2022
31.12.2021
Loan covenant
\nEquity ratio
55 %
47 %
> 30%
\nInterest cover ratio
58.38
37.33
> 4.00
\nMovements in interest-bearing liabilities 2022
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Acquisition
Currency
\nReceipts/ remeasurements
/ Disposal of
translation
\nAmounts in NOK million
31.12.2021
Payments
and terminations
subsidiaries Reclassi\ufb01cation
di\ufb00erences
31.12.2022
\nLease liabilities
685
-
118
(218)
(117)
8
475
\nLoans from external parties
3 125
547
-
-
(9)
34
3 697
\nBank \ufb01nancing
4 615
902
-
650
(189)
223
6 202
\nTotal movements non-current
8 425
1 449
118
432
(315)
266
10 374
\nLease liabilities
116
(116)
-
(20)
117
5
103
\nLoans from external parties
1 264
(1 328)
-
-
9
64
10
\nBank \ufb01nancing
572
(710)
-
10
189
13
74
\nTotal movements current
1 952
(2 153)
-
(9)
315
82
187
\nTotal
10 376
(704)
118
423
-
348
10 561
\nMovements in interest-bearing liabilities 2021
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Currency
\nReceipts/
remeasurements
translation
\nAmounts in NOK million
31.12.2020
Payments
and terminations
Reclassi\ufb01cation
di\ufb00erences
31.12.2021
\nLease liabilities
566
-
258
(138)
(1)
685
\nLoans from external parties
1 996
2 464
-
(1 266)
(69)
3 125
\nBank \ufb01nancing
4 652
132
-
(5)
(164)
4 615
\nTotal movements non-current
7 214
2 596
258
(1 409)
(233)
8 425
\nLease liabilities
97
(118)
-
138
(1)
116
\nLoans from external parties
2 407
(2 373)
-
1 266
(36)
1 264
\nBank \ufb01nancing
762
(226)
-
5
31
572
\nTotal movements current
3 266
(2 717)
-
1 409
(6)
1 952
\nTotal movements
10 479
(122)
258
-
(239)
10 376
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18746": {
"value": "22. Other assets Judgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18747": {
"value": "22. Other assetsJudgements and estimates
\nJudgement is applied when assessing the value of shares
\nin unlisted companies. For estimates related to valuation of
\n\ufb01nancial assets, see note 25 Financial assets and liabilities.
\nJudgement is applied when determining the estimated
\nexpected credit loss on other receivables and prepayments.
\nThe judgement is based on experienced losses in the past
\nand expectations about future economic conditions for the
\ndi\ufb00erent counterparties.
\nDetails of other assets
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551
\nProvision for impairment included in total other assets, mainly
\nprepayments.
(75)
(69)
\nRestricted deposits mainly consist of restricted deposits
\nrelated to the ongoing tax litigation in Elkem's business
\nin Brazil of NOK 15 million (NOK 14 million), see note 24
\nProvisions and other liabilities, and deposit for pension
\nguarantee, related to unfunded pension liabilities for
\nsalaries above 12G, of NOK 31 million (NOK 27 million).
\nOther receivables includes NOK 12 million (NOK 87 million)
\nrelated to settlement of power derivatives.
\nCorporate income tax receivable partly consists of Elkem
\nASA's pending tax issues with tax authorities (see note 14
\nTaxes). Elkem\u2019s assessment is that the defence against the
\naction will be successful, but that the case consideration might
\ntake up to 3 years. Parts of Elkem's income tax receivables is
\ncorrespondingly expected to be settled later than one year.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18751": {
"value": "Other shares Investments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares and recognised in
\nother non-current assets in the statement of \ufb01nancial position.
\nOther shares consist of equity investments in both listed and
\nunlisted companies. Shares in listed companies are measured
\nat fair value through pro\ufb01t or loss. Investments in equity
\ninstruments that do not have a quoted market price in an
\nactive market are classi\ufb01ed as \ufb01nancial assets measured at fair
\nvalue through other comprehensive income (OCI). Changes in
\nfair values recognised in OCI cannot be subsequently recycled
\nto statement of pro\ufb01t or loss. Dividends from such investments
\nare recognised as other items in the statement of pro\ufb01t or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18752": {
"value": "Other sharesInvestments in equity instruments with an ownership below
\n20% are normally classi\ufb01ed as other shares and recognised in
\nother non-current assets in the statement of \ufb01nancial position.
\nOther shares consist of equity investments in both listed and
\nunlisted companies. Shares in listed companies are measured
\nat fair value through pro\ufb01t or loss. Investments in equity
\ninstruments that do not have a quoted market price in an
\nactive market are classi\ufb01ed as \ufb01nancial assets measured at fair
\nvalue through other comprehensive income (OCI). Changes in
\nfair values recognised in OCI cannot be subsequently recycled
\nto statement of pro\ufb01t or loss. Dividends from such investments
\nare recognised as other items in the statement of pro\ufb01t or loss.
Derivatives
\nDerivative \ufb01nancial assets and liabilities include \ufb01nancial
\ninstruments or contracts where the value changes in
\nresponse to the change of a speci\ufb01ed rate, price or index and
\ncommodity contracts within the scope of IFRS 9.
\nDerivatives are initially recognised at fair value at the date
\nwhen the derivative contracts are entered into. Transaction
\ncosts that are directly attributable to the acquisition of
\n\ufb01nancial assets or liabilities at fair value through pro\ufb01t or loss,
\nare recognised immediately in the statement of pro\ufb01t or loss.
\nSubsequently the derivatives are remeasured to their fair value
\nat the end of each reporting period. The resulting gain or loss
\nis recognised in the statement of pro\ufb01t or loss immediately,
\nunless the derivative is designated and is e\ufb00ective as a
\nhedging instrument, in which case the change in fair value is
\nrecognised in statement of pro\ufb01t or loss in the same period(s)
\nas the hedged objects a\ufb00ects the pro\ufb01t or loss.
\nDerivatives are presented as current assets or liabilities, unless
\nthey are expected to be realised more than 12 months after
\nthe reporting period. In that case, they are classi\ufb01ed as non-
\ncurrent assets or liabilities.
\nEmbedded derivatives
\nAn embedded derivative is a component of a hybrid instrument
\nthat also includes a non-derivative host contract with the e\ufb00ect
\nthat some of the cash \ufb02ows of the combined instrument vary in
\na way similar to a stand-alone derivative. Derivatives embedded
\nin \ufb01nancial liability of a non-\ufb01nancial host are separated from
\nthe host and accounted for as separate derivatives if; the
\neconomic characteristics and risks are not closely related to
\nthe host, a separate instrument with the same terms as the
\nembedded derivative would meet the de\ufb01nition of a derivative
\nand the hybrid contract is not measured at fair value through
\npro\ufb01t and loss. Elkem has long-term power contracts settled
\nin other currencies than the entity\u2019s functional currency. The
\ncurrency portion of these contracts is an embedded derivative
\nand is recognised and presented as an independent derivative,
\nsee section derivatives above.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18768": {
"value": "Financial assets
\nA \ufb01nancial asset is recognised in the statement of \ufb01nancial
\nposition when Elkem becomes party to a contract. Assets to
\nbe acquired in relation to a \ufb01rm commitment to sell goods
\nor services are recognised at the time Elkem has performed
\nunder the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in the
\nstatement of \ufb01nancial position at fair value plus any transaction
\ncosts directly attributable to the acquisition or issue of the
\nasset. Financial assets are derecognised once the right to
\nfuture cash \ufb02ows have expired or been transferred to a third
\nparty, and Elkem has transferred substantially all the risk and
\nrewards of control of these assets. Any rights or obligations
\nretained in any transferred assets are booked separately as
\nassets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
Financial assets
\nA \ufb01nancial asset or a \ufb01nancial liability is recognised in the
\nstatement of \ufb01nancial position when Elkem becomes party to
\na contract. Assets to be acquired and liabilities to be incurred
\nas a result of a \ufb01rm commitment to purchase or sell goods
\nor services are recognised at the time one of the parties has
\nperformed under the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in
\nthe statement of \ufb01nancial position at fair value plus any
\ntransaction costs directly attributable to the acquisition or
\nissue of the asset. Financial assets are derecognised when
\nthe right to future cash \ufb02ows have expired or been transferred
\nto a third party, once the group has transferred substantially
\nall the risk and rewards of control of these assets. Any rights
\nor obligations retained in any transferred assets are booked
\nseparately as assets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18790": {
"value": "Loans and receivables Loans and receivables are non-derivative hold to collect
\n\ufb01nancial assets with \ufb01xed or determinable payments that are
\nnot quoted in a regulated market. After initial recognition, they
\nare recognised at amortised cost using the e\ufb00ective interest
\nmethod. Gains and losses are recognised in the statement of
\npro\ufb01t or loss when the loans and receivables are derecognised
\nor impaired, as well as through the amortisation process.
\nIf there is objective evidence of impairment, or if there is a risk
\nthat the group may not recover the contractual amounts at the
\ncontractual maturity dates, an impairment loss is recognised
\nin the statement of pro\ufb01t or loss. The provision is equal to the
\ndi\ufb00erence between the carrying amount and the estimated
\nfuture recoverable cash \ufb02ows.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForLoansAndReceivablesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18836": {
"value": "Details of other assets Non-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nOther shares
\nRestricted deposits
\nOther deposits
\nPension assets, de\ufb01ned bene\ufb01ts and contribution plans (note 9)
\nPrepayments for construction of \ufb01xed assets
\nPrepayments for goods and equipment
\nPrepayments for other expenses
\nPrepayments to related parties (note 32)
\nReceivables from related parties, interest-bearing (note 32)
\nReceivables from related parties, interest free (note 32)
\nGrants receivable (note 8)
\nValue added tax
\nCorporate income tax
\nInterest receivables
\nOther receivables
\nAssets at fair value through pro\ufb01t or loss
\nOther assets
\nTotal other assets
\n24
\n46
\n10
\n41
\n99
\n-
\n77
\n-
\n1
\n-
\n306
\n64
\n-
\n-
\n8
\n-
\n39
\n716
\n32
\n41
\n34
\n1
\n24
\n-
\n72
\n-
\n1
\n-
\n202
\n47
\n-
\n-
\n8
\n-
\n15
\n478
\n-
\n-
\n-
\n2
\n-
\n150
\n90
\n15
\n-
\n7
\n620
\n418
\n338
\n0
\n47
\n-
\n11
\n1 698
\n-
\n-
\n-
\n2
\n-
\n169
\n87
\n18
\n-
\n1
\n493
\n361
\n237
\n1
\n155
\n14
\n14
\n1 551",
"dimensions": {
"concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18967": {
"value": "23. Interest-bearing assets and liabilities Details of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
\nInterest-bearing liabilities by currency
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Currency amount
NOK
Currency amount
NOK
\nEUR
630
6 620
608
6 083
\nUSD
3
31
4
38
\nNOK
2 753
2 753
3 038
3 038
\nCNY
1 963
2 809
2 333
3 240
\nOther currencies
-
66
-
77
\nTotal interest-bearing liabilities
12 278
12 476
\nMaturity of interest-bearing liabilities
\n31 December 2022
\n2028
\nAmounts in NOK million
2023
2024
2025
2026
2027
and later
Total
\nLease liabilities
103
74
57
47
40
257
578
\nLoans from external parties, other than bank
10
916
1 234
942
500
105
3 706
\nBank \ufb01nancing
74
9
39
63
5 335
755
6 276
\nBills payable
1 742
1 742
\nAccrued interest
17
17
\nTotal interest-bearing liabilities excluding prepaid loan fees
1 946
1 000
1 330
1 052
5 875
1 117
12 320
\nPrepaid loan fees
(42)
\nTotal interest-bearing liabilities
12 278
\nMaturity of interest-bearing liabilities
\n31 December 2021
\n2027
\nAmounts in NOK million
2022
2023
2024
2025
2026
and later
Total
\nLease liabilities
116
101
80
64
53
387
801
\nLoans from external parties, other than bank
1 264
7
1 118
1 000
500
500
4 389
\nBank \ufb01nancing
572
4 398
206
3
3
4
5 186
\nBills payable
2 096
2 096
\nAccrued interest
20
20
\nTotal interest-bearing liabilities excluding prepaid loan fees
4 067
4 506
1 404
1 067
557
891
12 492
\nPrepaid loan fees
(16)
\nTotal interest-bearing liabilities
12 476
Loan agreements
\nThe main non-current loan agreements as of 31 December
\n2022 are a term loan of EUR 500 million (EUR 400 million), a
\nterm loan of EUR 0 million (EUR 5 million), issued bond loans
\nof a total of NOK 2,500 million (NOK 2,500 million) and a
\nseries of loans issued in the Schuldschein market of EUR 113
\nmillion (EUR 61 million). The main loan agreements are granted
\nto Elkem ASA. In addition Elkem Silicones Xinghuo \ufb01nancing
\nis parts of its upgrade of property, plant and equipment with a
\nunsecured term loan of CNY 650 million (CNY 0 million). The
\ninterest rates for the non-current loan agreements are in the
\nrange of 4.38% to 4.78% for the bond loans, 1.82% to 4.5% for
\nthe loans in the Schuldschein market and 3.45% to 3.95% for
\nthe PPE loans. For the term loan the interest rate is 3.44%.
\nElkem placed EUR 200 million in the Schuldschein market
\non 4 and 6-year tenors in December 2022, where of EUR
\n52 million was disbursed in December 2022, while EUR 148
\nmillion was disbursed in January 2023. In June Elkem signed
\nnew bank facilities with a term loan of EUR 500 million and a
\ncredit facility of EUR 500 million, re\ufb01niancing the term loan
\nof EUR 400 million from prior year. Later in 2022 the facilities
\nwas linked to two sustainability KPIs, KPI 1 Lost Time Injury
\nRate and KPI 2 \u2013 Product Group Carbon Footprint. The margin
\nof the RCF and term loan shall be reduced by 0.025% if both
\nKPIs are met, and increased by 0.025% if none of the KPIs are
\nmet. If one KPI is met there shall be no change to the margin.
\nThe sustainability KPIS will \ufb01rst be tested for 2023 with e\ufb00ect
\nfrom 2024.
\nOne of the loans issued in the Schuldschein market (EUR 15
\nmillion), is a \ufb01xed rate loan with a \ufb01xed rate of 1.8160%. Given
\nthe market conditions as at 31 December 2022 the loan would
\nhave been approximately EUR 0.7 million lower, due to the
\ndi\ufb00erence between \ufb01xed and market rate.
\nThe bond loans are listed on Oslo B\u00f8rs. There are no covenants
\nrelated to the bond loans. There are no material di\ufb00erences
\nbetween fair value of the bond loans and book values.
\nThe loan facilities are unsecured, but part of the loans has
\n\ufb01nancial covenants related to them, see below.
\nCredit facilities
\nAs of 31 December 2022 the group is granted credit facilities
\nof NOK 6,356 million. At 31 December 2022 NOK 14 million
\nis drawn.
\nAs of 31 December 2021 the group is granted credit facilities
\nof NOK 3,144 million. The credit facilities are undrawn at 31
\nDecember 2021.
\nThe main revolving credit facilities are granted to Elkem
\nASA, but the facilities can be utilised by Elkem ASA and its
\nsubsidiaries. The main facilities amount to EUR 500 million,
\nCNY 199 million, CNY 300 million and NOK 250 million
\nrespectively. See note 27 Financial risk, section (c) liquidity risk
\nfor more information.
\nHedging
\nSome / part of loans are designated as a hedging instrument,
\nsee note 26 Hedging.
\nLoan covenant
\nElkem has \ufb01nancial covenants related to its main bank
\n\ufb01nancing and parts of loans from external parties, other than
\nbank (Schuldschein), in Norway. The interest-bearing loans in
\nChina have no connected \ufb01nancial covenants. In addition to
\nthe covenants on these loan facilities in Norway there are loan
\ncovenants related to the credit facilities in Elkem Metal Canada
\nInc of CAD 2 million. Elkem and Elkem Metal Canada Inc. are
\ncompliant with their covenants at the end of 2022 and 2021.
\nThe covenants for the interest-bearing loan facilities in Norway
\nrelate to the \ufb01nancial performance of Elkem and are as
\nspeci\ufb01ed in the table below.
\nCovenant Elkem related to drawn loan of NOK 6,501 million
\n(NOK 5,971 million) in Elkem ASA
\nAmounts in NOK million
31.12.2022
31.12.2021
Loan covenant
\nEquity ratio
55 %
47 %
> 30%
\nInterest cover ratio
58.38
37.33
> 4.00
\nMovements in interest-bearing liabilities 2022
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Acquisition
Currency
\nReceipts/ remeasurements
/ Disposal of
translation
\nAmounts in NOK million
31.12.2021
Payments
and terminations
subsidiaries Reclassi\ufb01cation
di\ufb00erences
31.12.2022
\nLease liabilities
685
-
118
(218)
(117)
8
475
\nLoans from external parties
3 125
547
-
-
(9)
34
3 697
\nBank \ufb01nancing
4 615
902
-
650
(189)
223
6 202
\nTotal movements non-current
8 425
1 449
118
432
(315)
266
10 374
\nLease liabilities
116
(116)
-
(20)
117
5
103
\nLoans from external parties
1 264
(1 328)
-
-
9
64
10
\nBank \ufb01nancing
572
(710)
-
10
189
13
74
\nTotal movements current
1 952
(2 153)
-
(9)
315
82
187
\nTotal
10 376
(704)
118
423
-
348
10 561
\nMovements in interest-bearing liabilities 2021
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Currency
\nReceipts/
remeasurements
translation
\nAmounts in NOK million
31.12.2020
Payments
and terminations
Reclassi\ufb01cation
di\ufb00erences
31.12.2021
\nLease liabilities
566
-
258
(138)
(1)
685
\nLoans from external parties
1 996
2 464
-
(1 266)
(69)
3 125
\nBank \ufb01nancing
4 652
132
-
(5)
(164)
4 615
\nTotal movements non-current
7 214
2 596
258
(1 409)
(233)
8 425
\nLease liabilities
97
(118)
-
138
(1)
116
\nLoans from external parties
2 407
(2 373)
-
1 266
(36)
1 264
\nBank \ufb01nancing
762
(226)
-
5
31
572
\nTotal movements current
3 266
(2 717)
-
1 409
(6)
1 952
\nTotal movements
10 479
(122)
258
-
(239)
10 376
24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherNoncurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18968": {
"value": "23. Interest-bearing assets and liabilities Details of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
\nInterest-bearing liabilities by currency
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Currency amount
NOK
Currency amount
NOK
\nEUR
630
6 620
608
6 083
\nUSD
3
31
4
38
\nNOK
2 753
2 753
3 038
3 038
\nCNY
1 963
2 809
2 333
3 240
\nOther currencies
-
66
-
77
\nTotal interest-bearing liabilities
12 278
12 476
\nMaturity of interest-bearing liabilities
\n31 December 2022
\n2028
\nAmounts in NOK million
2023
2024
2025
2026
2027
and later
Total
\nLease liabilities
103
74
57
47
40
257
578
\nLoans from external parties, other than bank
10
916
1 234
942
500
105
3 706
\nBank \ufb01nancing
74
9
39
63
5 335
755
6 276
\nBills payable
1 742
1 742
\nAccrued interest
17
17
\nTotal interest-bearing liabilities excluding prepaid loan fees
1 946
1 000
1 330
1 052
5 875
1 117
12 320
\nPrepaid loan fees
(42)
\nTotal interest-bearing liabilities
12 278
\nMaturity of interest-bearing liabilities
\n31 December 2021
\n2027
\nAmounts in NOK million
2022
2023
2024
2025
2026
and later
Total
\nLease liabilities
116
101
80
64
53
387
801
\nLoans from external parties, other than bank
1 264
7
1 118
1 000
500
500
4 389
\nBank \ufb01nancing
572
4 398
206
3
3
4
5 186
\nBills payable
2 096
2 096
\nAccrued interest
20
20
\nTotal interest-bearing liabilities excluding prepaid loan fees
4 067
4 506
1 404
1 067
557
891
12 492
\nPrepaid loan fees
(16)
\nTotal interest-bearing liabilities
12 476
Loan agreements
\nThe main non-current loan agreements as of 31 December
\n2022 are a term loan of EUR 500 million (EUR 400 million), a
\nterm loan of EUR 0 million (EUR 5 million), issued bond loans
\nof a total of NOK 2,500 million (NOK 2,500 million) and a
\nseries of loans issued in the Schuldschein market of EUR 113
\nmillion (EUR 61 million). The main loan agreements are granted
\nto Elkem ASA. In addition Elkem Silicones Xinghuo \ufb01nancing
\nis parts of its upgrade of property, plant and equipment with a
\nunsecured term loan of CNY 650 million (CNY 0 million). The
\ninterest rates for the non-current loan agreements are in the
\nrange of 4.38% to 4.78% for the bond loans, 1.82% to 4.5% for
\nthe loans in the Schuldschein market and 3.45% to 3.95% for
\nthe PPE loans. For the term loan the interest rate is 3.44%.
\nElkem placed EUR 200 million in the Schuldschein market
\non 4 and 6-year tenors in December 2022, where of EUR
\n52 million was disbursed in December 2022, while EUR 148
\nmillion was disbursed in January 2023. In June Elkem signed
\nnew bank facilities with a term loan of EUR 500 million and a
\ncredit facility of EUR 500 million, re\ufb01niancing the term loan
\nof EUR 400 million from prior year. Later in 2022 the facilities
\nwas linked to two sustainability KPIs, KPI 1 Lost Time Injury
\nRate and KPI 2 \u2013 Product Group Carbon Footprint. The margin
\nof the RCF and term loan shall be reduced by 0.025% if both
\nKPIs are met, and increased by 0.025% if none of the KPIs are
\nmet. If one KPI is met there shall be no change to the margin.
\nThe sustainability KPIS will \ufb01rst be tested for 2023 with e\ufb00ect
\nfrom 2024.
\nOne of the loans issued in the Schuldschein market (EUR 15
\nmillion), is a \ufb01xed rate loan with a \ufb01xed rate of 1.8160%. Given
\nthe market conditions as at 31 December 2022 the loan would
\nhave been approximately EUR 0.7 million lower, due to the
\ndi\ufb00erence between \ufb01xed and market rate.
\nThe bond loans are listed on Oslo B\u00f8rs. There are no covenants
\nrelated to the bond loans. There are no material di\ufb00erences
\nbetween fair value of the bond loans and book values.
\nThe loan facilities are unsecured, but part of the loans has
\n\ufb01nancial covenants related to them, see below.
\nCredit facilities
\nAs of 31 December 2022 the group is granted credit facilities
\nof NOK 6,356 million. At 31 December 2022 NOK 14 million
\nis drawn.
\nAs of 31 December 2021 the group is granted credit facilities
\nof NOK 3,144 million. The credit facilities are undrawn at 31
\nDecember 2021.
\nThe main revolving credit facilities are granted to Elkem
\nASA, but the facilities can be utilised by Elkem ASA and its
\nsubsidiaries. The main facilities amount to EUR 500 million,
\nCNY 199 million, CNY 300 million and NOK 250 million
\nrespectively. See note 27 Financial risk, section (c) liquidity risk
\nfor more information.
\nHedging
\nSome / part of loans are designated as a hedging instrument,
\nsee note 26 Hedging.
\nLoan covenant
\nElkem has \ufb01nancial covenants related to its main bank
\n\ufb01nancing and parts of loans from external parties, other than
\nbank (Schuldschein), in Norway. The interest-bearing loans in
\nChina have no connected \ufb01nancial covenants. In addition to
\nthe covenants on these loan facilities in Norway there are loan
\ncovenants related to the credit facilities in Elkem Metal Canada
\nInc of CAD 2 million. Elkem and Elkem Metal Canada Inc. are
\ncompliant with their covenants at the end of 2022 and 2021.
\nThe covenants for the interest-bearing loan facilities in Norway
\nrelate to the \ufb01nancial performance of Elkem and are as
\nspeci\ufb01ed in the table below.
\nCovenant Elkem related to drawn loan of NOK 6,501 million
\n(NOK 5,971 million) in Elkem ASA
\nAmounts in NOK million
31.12.2022
31.12.2021
Loan covenant
\nEquity ratio
55 %
47 %
> 30%
\nInterest cover ratio
58.38
37.33
> 4.00
\nMovements in interest-bearing liabilities 2022
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Acquisition
Currency
\nReceipts/ remeasurements
/ Disposal of
translation
\nAmounts in NOK million
31.12.2021
Payments
and terminations
subsidiaries Reclassi\ufb01cation
di\ufb00erences
31.12.2022
\nLease liabilities
685
-
118
(218)
(117)
8
475
\nLoans from external parties
3 125
547
-
-
(9)
34
3 697
\nBank \ufb01nancing
4 615
902
-
650
(189)
223
6 202
\nTotal movements non-current
8 425
1 449
118
432
(315)
266
10 374
\nLease liabilities
116
(116)
-
(20)
117
5
103
\nLoans from external parties
1 264
(1 328)
-
-
9
64
10
\nBank \ufb01nancing
572
(710)
-
10
189
13
74
\nTotal movements current
1 952
(2 153)
-
(9)
315
82
187
\nTotal
10 376
(704)
118
423
-
348
10 561
\nMovements in interest-bearing liabilities 2021
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Currency
\nReceipts/
remeasurements
translation
\nAmounts in NOK million
31.12.2020
Payments
and terminations
Reclassi\ufb01cation
di\ufb00erences
31.12.2021
\nLease liabilities
566
-
258
(138)
(1)
685
\nLoans from external parties
1 996
2 464
-
(1 266)
(69)
3 125
\nBank \ufb01nancing
4 652
132
-
(5)
(164)
4 615
\nTotal movements non-current
7 214
2 596
258
(1 409)
(233)
8 425
\nLease liabilities
97
(118)
-
138
(1)
116
\nLoans from external parties
2 407
(2 373)
-
1 266
(36)
1 264
\nBank \ufb01nancing
762
(226)
-
5
31
572
\nTotal movements current
3 266
(2 717)
-
1 409
(6)
1 952
\nTotal movements
10 479
(122)
258
-
(239)
10 376
24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherCurrentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18969": {
"value": "23. Interest-bearing assets and liabilitiesDetails of interest-bearing assets / (liabilities)
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583
\nInterest-bearing liabilities by currency
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Currency amount
NOK
Currency amount
NOK
\nEUR
630
6 620
608
6 083
\nUSD
3
31
4
38
\nNOK
2 753
2 753
3 038
3 038
\nCNY
1 963
2 809
2 333
3 240
\nOther currencies
-
66
-
77
\nTotal interest-bearing liabilities
12 278
12 476
\nMaturity of interest-bearing liabilities
\n31 December 2022
\n2028
\nAmounts in NOK million
2023
2024
2025
2026
2027
and later
Total
\nLease liabilities
103
74
57
47
40
257
578
\nLoans from external parties, other than bank
10
916
1 234
942
500
105
3 706
\nBank \ufb01nancing
74
9
39
63
5 335
755
6 276
\nBills payable
1 742
1 742
\nAccrued interest
17
17
\nTotal interest-bearing liabilities excluding prepaid loan fees
1 946
1 000
1 330
1 052
5 875
1 117
12 320
\nPrepaid loan fees
(42)
\nTotal interest-bearing liabilities
12 278
\nMaturity of interest-bearing liabilities
\n31 December 2021
\n2027
\nAmounts in NOK million
2022
2023
2024
2025
2026
and later
Total
\nLease liabilities
116
101
80
64
53
387
801
\nLoans from external parties, other than bank
1 264
7
1 118
1 000
500
500
4 389
\nBank \ufb01nancing
572
4 398
206
3
3
4
5 186
\nBills payable
2 096
2 096
\nAccrued interest
20
20
\nTotal interest-bearing liabilities excluding prepaid loan fees
4 067
4 506
1 404
1 067
557
891
12 492
\nPrepaid loan fees
(16)
\nTotal interest-bearing liabilities
12 476
Loan agreements
\nThe main non-current loan agreements as of 31 December
\n2022 are a term loan of EUR 500 million (EUR 400 million), a
\nterm loan of EUR 0 million (EUR 5 million), issued bond loans
\nof a total of NOK 2,500 million (NOK 2,500 million) and a
\nseries of loans issued in the Schuldschein market of EUR 113
\nmillion (EUR 61 million). The main loan agreements are granted
\nto Elkem ASA. In addition Elkem Silicones Xinghuo \ufb01nancing
\nis parts of its upgrade of property, plant and equipment with a
\nunsecured term loan of CNY 650 million (CNY 0 million). The
\ninterest rates for the non-current loan agreements are in the
\nrange of 4.38% to 4.78% for the bond loans, 1.82% to 4.5% for
\nthe loans in the Schuldschein market and 3.45% to 3.95% for
\nthe PPE loans. For the term loan the interest rate is 3.44%.
\nElkem placed EUR 200 million in the Schuldschein market
\non 4 and 6-year tenors in December 2022, where of EUR
\n52 million was disbursed in December 2022, while EUR 148
\nmillion was disbursed in January 2023. In June Elkem signed
\nnew bank facilities with a term loan of EUR 500 million and a
\ncredit facility of EUR 500 million, re\ufb01niancing the term loan
\nof EUR 400 million from prior year. Later in 2022 the facilities
\nwas linked to two sustainability KPIs, KPI 1 Lost Time Injury
\nRate and KPI 2 \u2013 Product Group Carbon Footprint. The margin
\nof the RCF and term loan shall be reduced by 0.025% if both
\nKPIs are met, and increased by 0.025% if none of the KPIs are
\nmet. If one KPI is met there shall be no change to the margin.
\nThe sustainability KPIS will \ufb01rst be tested for 2023 with e\ufb00ect
\nfrom 2024.
\nOne of the loans issued in the Schuldschein market (EUR 15
\nmillion), is a \ufb01xed rate loan with a \ufb01xed rate of 1.8160%. Given
\nthe market conditions as at 31 December 2022 the loan would
\nhave been approximately EUR 0.7 million lower, due to the
\ndi\ufb00erence between \ufb01xed and market rate.
\nThe bond loans are listed on Oslo B\u00f8rs. There are no covenants
\nrelated to the bond loans. There are no material di\ufb00erences
\nbetween fair value of the bond loans and book values.
\nThe loan facilities are unsecured, but part of the loans has
\n\ufb01nancial covenants related to them, see below.
\nCredit facilities
\nAs of 31 December 2022 the group is granted credit facilities
\nof NOK 6,356 million. At 31 December 2022 NOK 14 million
\nis drawn.
\nAs of 31 December 2021 the group is granted credit facilities
\nof NOK 3,144 million. The credit facilities are undrawn at 31
\nDecember 2021.
\nThe main revolving credit facilities are granted to Elkem
\nASA, but the facilities can be utilised by Elkem ASA and its
\nsubsidiaries. The main facilities amount to EUR 500 million,
\nCNY 199 million, CNY 300 million and NOK 250 million
\nrespectively. See note 27 Financial risk, section (c) liquidity risk
\nfor more information.
\nHedging
\nSome / part of loans are designated as a hedging instrument,
\nsee note 26 Hedging.
\nLoan covenant
\nElkem has \ufb01nancial covenants related to its main bank
\n\ufb01nancing and parts of loans from external parties, other than
\nbank (Schuldschein), in Norway. The interest-bearing loans in
\nChina have no connected \ufb01nancial covenants. In addition to
\nthe covenants on these loan facilities in Norway there are loan
\ncovenants related to the credit facilities in Elkem Metal Canada
\nInc of CAD 2 million. Elkem and Elkem Metal Canada Inc. are
\ncompliant with their covenants at the end of 2022 and 2021.
\nThe covenants for the interest-bearing loan facilities in Norway
\nrelate to the \ufb01nancial performance of Elkem and are as
\nspeci\ufb01ed in the table below.
\nCovenant Elkem related to drawn loan of NOK 6,501 million
\n(NOK 5,971 million) in Elkem ASA
\nAmounts in NOK million
31.12.2022
31.12.2021
Loan covenant
\nEquity ratio
55 %
47 %
> 30%
\nInterest cover ratio
58.38
37.33
> 4.00
\nMovements in interest-bearing liabilities 2022
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Acquisition
Currency
\nReceipts/ remeasurements
/ Disposal of
translation
\nAmounts in NOK million
31.12.2021
Payments
and terminations
subsidiaries Reclassi\ufb01cation
di\ufb00erences
31.12.2022
\nLease liabilities
685
-
118
(218)
(117)
8
475
\nLoans from external parties
3 125
547
-
-
(9)
34
3 697
\nBank \ufb01nancing
4 615
902
-
650
(189)
223
6 202
\nTotal movements non-current
8 425
1 449
118
432
(315)
266
10 374
\nLease liabilities
116
(116)
-
(20)
117
5
103
\nLoans from external parties
1 264
(1 328)
-
-
9
64
10
\nBank \ufb01nancing
572
(710)
-
10
189
13
74
\nTotal movements current
1 952
(2 153)
-
(9)
315
82
187
\nTotal
10 376
(704)
118
423
-
348
10 561
\nMovements in interest-bearing liabilities 2021
\nCash
\n\ufb02ows
Non-cash changes
\nAdditions, lease
\nmodi\ufb01cations,
Currency
\nReceipts/
remeasurements
translation
\nAmounts in NOK million
31.12.2020
Payments
and terminations
Reclassi\ufb01cation
di\ufb00erences
31.12.2021
\nLease liabilities
566
-
258
(138)
(1)
685
\nLoans from external parties
1 996
2 464
-
(1 266)
(69)
3 125
\nBank \ufb01nancing
4 652
132
-
(5)
(164)
4 615
\nTotal movements non-current
7 214
2 596
258
(1 409)
(233)
8 425
\nLease liabilities
97
(118)
-
138
(1)
116
\nLoans from external parties
2 407
(2 373)
-
1 266
(36)
1 264
\nBank \ufb01nancing
762
(226)
-
5
31
572
\nTotal movements current
3 266
(2 717)
-
1 409
(6)
1 952
\nTotal movements
10 479
(122)
258
-
(239)
10 376
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfBorrowingsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18971": {
"value": "Principle
\nInterest-bearing liabilities
\nThe liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability. Subsequently and
\ninsofar, as they are not designated as liabilities at fair value
\nthrough pro\ufb01t or loss, such liabilities are recognised at
\namortised cost using the e\ufb00ective interest rate method.
\nFinancial assets are derecognised when the rights to
\nreceive cash \ufb02ows from the assets have expired or have
\nbeen transferred to a third party. Financial liabilities are
\nderecognised when they are extinguished.
\nBills payable
\nA bill payable is a document where the buyer formally agrees
\nto pay for purchased goods or services at maturity date and
\nare normally guaranteed by a \ufb01nancial institution. The bills
\npayable are initially recognised when the supplier accepts
\nthe bill of exchange and is recognised at the amount equal
\nto the trade payables it replaces. Bills payable are used
\nby Elkem's Chinese entities, and the duration is normally
\nbelow six months. When the bill payable is guaranteed by a
\n\ufb01nancial institution it is normally required to deposit a certain
\nper centage of the nominal value of the bill payable into a
\nrestricted bank account. All bills payable in Elkem are bank
\nacceptance bills which is guaranteed by a \ufb01nancial institution.
Lease liabilities
\nSee note 16 Leases for accounting policies for right-of-use
\nassets and lease liabilities.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18973": {
"value": "Interest-bearing liabilities
\nThe liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability. Subsequently and
\ninsofar, as they are not designated as liabilities at fair value
\nthrough pro\ufb01t or loss, such liabilities are recognised at
\namortised cost using the e\ufb00ective interest rate method.
\nFinancial assets are derecognised when the rights to
\nreceive cash \ufb02ows from the assets have expired or have
\nbeen transferred to a third party. Financial liabilities are
\nderecognised when they are extinguished.
\nBills payable
\nA bill payable is a document where the buyer formally agrees
\nto pay for purchased goods or services at maturity date and
\nare normally guaranteed by a \ufb01nancial institution. The bills
\npayable are initially recognised when the supplier accepts
\nthe bill of exchange and is recognised at the amount equal
\nto the trade payables it replaces. Bills payable are used
\nby Elkem's Chinese entities, and the duration is normally
\nbelow six months. When the bill payable is guaranteed by a
\n\ufb01nancial institution it is normally required to deposit a certain
\nper centage of the nominal value of the bill payable into a
\nrestricted bank account. All bills payable in Elkem are bank
\nacceptance bills which is guaranteed by a \ufb01nancial institution.
Financial liabilities
\nNon-derivative \ufb01nancial liabilities include interest-bearing
\nliabilities, bills payable and trade payables. The liabilities are
\ninitially recognised at fair value of the amount required to
\nsettle the associated obligation, net of prepaid costs directly
\nattributable to the liability. Subsequently and insofar, as they
\nare not designated as liabilities at fair value through pro\ufb01t or
\nloss, such liabilities are recognised at amortised cost using the
\ne\ufb00ective interest rate method.
\nFinancial liabilities are derecognised when they are extinguished.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f18999": {
"value": "Cash and cash equivalents Cash and cash equivalents are held for the purpose of meeting
\nshort-term \ufb02uctuations in liquidity. Deposits with a term of 3
\nmonths or less on acquisition are included. Bank overdrafts
\nare presented within interest-bearing current liabilities in
\nthe statement of \ufb01nancial position. Restricted deposits are
\npresented separately in the statement of \ufb01nancial position
\nand excluded from cash and cash equivalents presented in the
\nstatement of cash \ufb02ows. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19021": {
"value": "Details of interest-bearing assets / (liabilities) Non-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nInterest-bearing liabilities
\nLease liabilities (note 16)
\nLoans from external parties, other
\nBank \ufb01nancing
\nAccrued interest
\nthan bank
\n475
\n3 697
\n6 160
\n-
\n685
\n3 125
\n4 599
\n-
\n103
\n10
\n74
\n17
\n116
\n1 264
\n572
\n20
\nTotal interest-bearing liabilities
10 331
8 409
204
1 972
\nTotal bills payable
-
-
1 742
2 096
\nTotal interest-bearing liabilities including bills payable
10 331
8 409
1 946
4 067
\nInterest-bearing assets
\nCash and cash equivalents
\nRestricted deposits bills payable
\nOther restricted deposits
\nReceivables from related parties
\nLoans to external parties
\nAccrued interest income
\n-
\n-
\n46
\n1
\n8
\n-
\n-
\n-
\n41
\n1
\n8
\n-
\n9 255
\n395
\n12
\n-
\n-
\n0
\n7 040
\n601
\n8
\n-
\n-
\n1
\nTotal interest-bearing assets
55
50
9 663
7 650
\nNet interest-bearing assets / (liabilities)
(10 276)
(8 359)
7 717
3 583",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19527": {
"value": "24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19528": {
"value": "24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19529": {
"value": "24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19530": {
"value": "24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19531": {
"value": "24. Provisions and other liabilites Judgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19532": {
"value": "24. Provisions and other liabilitesJudgements and estimates
\nElkem has several types of provisions due to its operations.
\nSuch liabilities are normally uncertain in timing and amount,
\nand recognised amounts are estimates based on available
\ninformation at the end of the reporting period. The estimated
\nliability is based on expected cash \ufb02ows necessary to settle
\nthe obligation, adjusted for any related risk and discounted by
\nusing the pre-tax interest applicable for the speci\ufb01c entity. The
\nestimates are updated when new or updated information is
\navailable, or at a minimum at each reporting date. The actual
\noutcome will di\ufb00er from the estimate.
\nDetails of provision and other liabilities
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nEmployee withholding taxes and other public taxes
-
-
160
133
\nValue added tax
-
-
137
223
\nPrepayments
-
-
356
375
\nPrepayments from related parties (note 32)
-
-
17
10
\nLiabilities to related parties (note 32)
-
-
30
32
\nProvisions
216
127
102
287
\nContract obligations power
-
-
-
4
\nContingent consideration acquisition of subsidiaries
-
40
42
163
\nAccrued expenses
-
-
516
320
\nGrants, deferred income (note 8)
-
-
8
18
\nGrants payable (note 8)
16
15
-
-
\nRecourse liability factoring agreement (note 21)
-
-
106
57
\nOther liabilities
-
-
72
35
\nTotal provisions and other liabilities
232
182
1 545
1 657
\nThe contingent consideration acquisition of subsidiaries relates
\nto the acquisition of Polysil on 1 April 2020. The payments of
\nthe contingent consideration was due in installements and the
\npayments have not di\ufb00ered signi\ufb01cantly from the maximum
\nthat was recognised intially.
\nMovements in contingent consideration
\nAmounts in NOK million
2022
2021
\nOpening balance
203
261
\nFair value adjustment of contingent consideration upon payment
(0)
1
\nUnwinding
4
6
\nPayments
(176)
(78)
\nCurrency translation di\ufb00erences
12
13
\nClosing balance
42
203
\nMovements in provision
\n2022
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n70
\n-
\n(31)
\n(26)
\n3
\n17
\n32
\n2
\n(0)
\n-
\n0
\n34
\n109
\n83
\n(2)
\n(1)
\n0
\n190
\n66
\n7
\n(17)
\n(1)
\n7
\n62
\n4
\n6
\n(1)
\n(1)
\n1
\n9
\n134
\n0
\n(127)
\n-
\n0
\n7
\n415
\n99
\n(180)
\n(28)
\n12
\n318
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n17
\n17
\n34
\n-
\n34
\n131
\n58
\n190
\n50
\n12
\n62
\n-
\n9
\n9
\n1
\n6
\n7
\n216
\n102
\n318
\nMovements in provision
\n2021
\nAmounts in NOK million
Restructuring
\nSite
\nrestoration
\nEnvironmental
\nmeasures
Litigations
Customers
\nOther
\nprovisions
\nTotal
\nprovisions
\nOpening balance
\nAdditional provisions recognised
\nUsed during the year
\nReversal of provisions recognised
\nCurrency translation di\ufb00erences
\nClosing balance
\n127
\n-
\n(17)
\n(41)
\n1
\n70
\n31
\n2
\n(0)
\n-
\n(0)
\n32
\n94
\n16
\n-
\n-
\n(0)
\n109
\n60
\n10
\n(1)
\n-
\n(3)
\n66
\n9
\n0
\n(5)
\n-
\n(0)
\n4
\n12
\n171
\n(47)
\n-
\n(2)
\n134
\n332
\n199
\n(72)
\n(41)
\n(4)
\n415
\nHereof non-current
\nHereof current
\nClosing balance
\n-
\n70
\n70
\n32
\n0
\n32
\n55
\n54
\n109
\n40
\n26
\n66
\n-
\n4
\n4
\n0
\n134
\n134
\n127
\n287
\n415
Restructuring
\nThe provision is related to Elkem's group wide productivity
\nimprovement programme launched in \ufb01rst quarter of 2020.
\nSite restoration
\nThe site restoration provisions are related to the necessary site
\nremediation work that Elkem will have to undertake in respect
\nof its quartz mines.
\nEnvironmental measures
\nElkem has worldwide operations representing potential
\nexposure towards environmental consequences. Elkem has
\nestablished clear procedures to minimise environmental
\nemissions, well within public emission limits. The provisions
\nrelate to clean up costs for a closed down production site and
\nland\ufb01lls, mainly in Canada and Norway, and also estimated
\ncost for clean-up cost of polluted soil and fjord in relation to
\nproduction sites in Norway and France. The additional provision
\nrecognised in 2022 includes NOK 70 million in restoration
\nexpense related to decommissioned business in Canada.
\nLitigations
\nThe provisions due to litigations are mainly related to business
\ntax cases in the Carbon division in Brazil.
\nTax cases in Brazil can take a substantial amount of time before
\nresolution by the tax authorities, hence the time of settlement
\nis uncertain. Provisions are made for each case based on the
\nestimated amount expected to be paid, including interest and
\npenalties. In accordance with Brazilian regulations, agreed
\namounts have been transferred to restricted bank accounts and
\nare adjusted for interest. The restricted cash is recognised in
\nother non-current assets, see note 22 Other assets.
\nCustomers
\nThe provisions are related to customer complaints, mainly in
\nthe Silicones division.
\nOther provisions
\nConsist mainly of a provision related to relocation of workers
\nbuildings located in proximity to the Silicones Xinghuo plant,
\nrequired by the authorities. The provision was settled in 2022.
\nContingent liabilities
\nDue to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19536": {
"value": "Provisions A provision is recognised when the group has a present
\nobligation (legal or constructive) and it is probable that an
\nout\ufb02ow of resources is required to settle the obligation. The
\namount recognised is the best estimate of the consideration
\nrequired to settle the obligation, taking into account the risks
\nand uncertainties surrounding the obligation, known at the end
\nof the reporting period. Provisions are measured at present
\nvalue, unless the time value is assessed to be immaterial.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19552": {
"value": "Other liabilities The liabilities are initially recognised at fair value of the amount
\nrequired to settle the associated obligation, net of prepaid
\ncosts directly attributable to the liability.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19559": {
"value": "Contingent liabilities Contingent liabilities are liabilities which are not recognised
\nbecause they are possible obligations that have not yet been
\ncon\ufb01rmed, or they are present obligations where an out\ufb02ow of
\nresources is not probable. Any signi\ufb01cant contingent liabilities
\nare disclosed in the notes.
\nContingent assets
\nContingent assets are not recognised but disclosed in the
\nnotes if probable.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19921": {
"value": "Contingent liabilities Due to its operations Elkem could be included in criminal or
\ncivil proceedings related to, among others, product liability,
\nenvironment, health and safety, anti-competitive, anti-
\ncorruption, trade sanctions or other similar laws or regulations
\nor other forms of commercial disputes which could have a
\nmaterial adverse e\ufb00ect on Elkem. See section litigation above
\nfor ongoing cases and see note 14 Taxes for ongoing tax audits
\nby authorities.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19933": {
"value": "25. Financial assets and liabilities Judgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
\n(c) O\ufb00setting
\nFinancial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19934": {
"value": "25. Financial assets and liabilities Judgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
\n(c) O\ufb00setting
\nFinancial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19935": {
"value": "25. Financial assets and liabilities Judgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19936": {
"value": "25. Financial assets and liabilities Judgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
\n(c) O\ufb00setting
\nFinancial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialAssetsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19937": {
"value": "25. Financial assets and liabilities Judgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
\n(c) O\ufb00setting
\nFinancial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19938": {
"value": "25. Financial assets and liabilitiesJudgements and estimates
\nEstimates are used for \ufb01nancial assets and liabilities where
\nthere are no listed prices or direct observable prices.
\nCalculation of fair value is in such cases based on observable
\nprices for similar contracts, as far as possible. For contracts
\nwith a duration beyond the period of observable prices, the
\nassumptions are derived based on the latest observable data.
\nDue to the current market situation in the energy market
\nwith very high prices and high volatility there is signi\ufb01cant
\nuncertainty in the estimation of forward power prices with
\ndirect impact on the value of the power contracts classi\ufb01ed
\nas \ufb01nancial instruments. The estimated value of the power
\ncontracts can be impacted by the changes in the power prices
\nboth within the next 12 months, but also in the period beyond
\n12 months. There is also uncertainty related to the discount
\nrate used for discounting future cash \ufb02ows and the expectation
\nto the development in the consumer price index going forward.
\nSee assumptions used at the balance sheet date in chapter
\n(a) Fair value measurement below, and sensitivity of the main
\npower contracts in note 27 Financial risk.
\nAssets by category
\n31 December 2022
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
Non-
\nvalue through
value - hedging
comprehensive
receivables at
\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
822
740
-
-
-
1 562
\nOther assets,
non-current
22
7
-
18
65
627
716
\nTrade receivables
21
-
-
-
4 248
-
4 248
\nDerivatives, current
284
427
-
-
-
711
\nOther assets, current
22
-
-
-
54
1 644
1 698
\nRestricted deposits
23
-
-
-
408
-
408
\nCash and cash equivalents
23
-
-
-
9 255
-
9 255
\nTotal
1 113
1 167
18
14 030
2 271
Liabilities by category
\n31 December 2022
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
-
10 331
-
10 331
\nProvisions and other liabilities, non-current
24
-
-
-
232
232
\nTrade payables
-
-
5 335
-
5 335
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
196
-
204
\nBills payable
23
-
-
1 742
-
1 742
\nDerivatives, current
\n2)
\n(27)
136
-
-
109
\nProvisions and other liabilities, current
24
42
-
724
779
1 545
\nTotal
15
144
18 329
1 011
\nAssets by category
\n31 December 2021
\nAssets at fair value
\nAssets at fair
Assets at fair
through other
Loans and
\nvalue through
value - hedging
comprehensive
receivables at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
income
amortised cost
assets
Total
\nDerivatives, non-current
(4)
308
-
-
-
304
\nOther assets, non-current
22
6
-
27
84
362
478
\nTrade receivables
21
-
-
-
4 297
-
4 297
\nDerivatives, current
\n2)
\n(2)
285
-
-
-
283
\nOther assets, current
22
14
-
-
157
1 381
1 551
\nRestricted deposits
23
-
-
-
609
-
609
\nCash and cash equivalents
23
-
-
-
7 040
-
7 040
\nTotal
14
593
27
12 187
1 743
\nLiabilities by category
\n31 December 2021
\nLiabilities
\nat fair value
Liabilities at fair
\nthrough
value - hedging
Liabilities at
Non-\ufb01nancial
\nAmounts in NOK million
Note
pro\ufb01t or loss
instruments
amortised cost
liabilities
Total
\nInterest-bearing liabilities, non-current
\n1)
\n23
-
3
8 406
-
8 409
\nDerivatives, non-current
\n2)
\n(71)
88
-
-
18
\nProvisions and other liabilities, non-current
24
40
-
-
142
182
\nTrade payables
-
-
4 614
-
4 614
\nInterest-bearing liabilities, current
\n1)
\n23
-
8
1 964
-
1 972
\nBills payable
23
-
-
2 096
-
2 096
\nDerivatives, current
\n2)
\n(16)
40
-
-
23
\nProvisions and other liabilities, current
24
163
-
448
1 047
1 657
\nTotal
116
138
17 527
1 189
\n1)
\nIn addition to the hedging instruments included in derivatives, currency e\ufb00ect of EUR loan is designated as a hedging instrument in a cash
\n\ufb02ow hedge of highly probable future sales. See note 26 Hedging.
\n2)
\nThe group applies hedge accounting for certain currency contracts and certain parts of power contracts. The negative value reported as
\nassets and liabilities at fair value is representing the value of parts of power contracts where hedge accounting is not applied.
\nThere are no material di\ufb00erences between fair value and the
\ncarrying amount for \ufb01nancial liabilities and \ufb01nancial assets at
\namortised cost.
\n(a) Fair value measurement
\nElkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212
\n(b) Details of \ufb01nancial instruments
\nDetails of currency exchange contracts
\n31 December 2022
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
31
Fwd
1,3101
2023
(9)
301
\nNOK
1 750
EUR
170
Fwd
10,2788
2023
(44)
1 790
\nNOK
189
JPY
2 014
Fwd
0,0938
2023
36
151
\nNOK
426
JPY
4 242
Fwd
0,1005
2024-2026
88
317
\nNOK
764
USD
79
Fwd
9,6767
2023
(10)
780
\nUSD
1
JPY
123
Fwd
0,0072
2023
(0)
9
\nNOK
719
EUR
69
Embedded
\n2)
\n10,4520
2023
(22)
723
\nNOK
3 688
EUR
335
Embedded
\n2)
\n11,0169
2024-2034
42
3 520
\nTotal fair value
\n3)
\n80
\nDetails of currency exchange contracts
\n31 December 2021
\nNotional
\nPurchase
Purchase
Sale
Sale
Type of
Currency
Fair value
amount
\n1)
\ncurrency
ccy million
currency
ccy million
instrument
deal rate
Due
NOK
NOK
\nCAD
40
USD
32
Fwd
1,2549
2022
(4)
284
\nNOK
1 231
EUR
120
Fwd
10,2303
2022
20
1 203
\nNOK
2
GBP
0
Fwd
11,6549
2022
(0)
2
\nNOK
169
JPY
1 844
Fwd
0,0916
2022
27
141
\nNOK
615
JPY
6 256
Fwd
0,0984
2023-2026
112
479
\nNOK
392
USD
45
Fwd
8,6557
2022
(9)
399
\nUSD
1
JPY
102
Fwd
0,0088
2022
0
8
\nNOK
709
EUR
69
Embedded
\n2)
\n10,3355
2022
1
686
\nNOK
4 039
EUR
371
Embedded
\n2)
\n10,8877
2023-2034
(18)
3 709
\nTotal fair value
\n3)
\n129
\n1)
\nNotional value of the contracts, based on currency rates 31 December.
\n2)
\nEmbedded EUR derivatives in own use power contracts.
\n3)
\nThe spot element of forward currency contracts with duration more than 3 months are designated as hedging instruments in a cash \ufb02ow
\nhedge of highly probable future sales, hence this part is classi\ufb01ed as \"Derivatives used for hedging\" in the table \"Assets and liabilities classi\ufb01ed
\nby category\" above. The interest element of these contracts and contracts of duration < 3 months are classi\ufb01ed as \"Assets/liabilities at fair
\nvalue through pro\ufb01t or loss\".
\nDetails of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2022
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
44
2023
43
15
\nPower contract \"30-\u00f8ringen\"
501
2023
608
158
\nPower contract \"30-\u00f8ringen\"
3 510
2024-2030
1 430
1 199
\nEquity warrants
2023
3
3
\nCommodity contracts Platinum
2 380
2023
1
7
\nTotal fair value contracts within scope of IFRS 9\u00a0
\n2)
\n2 085
Details of power contracts and other commodity
\ncontracts within the scope of IFRS 9
\n31 December 2021
\nNotional
\nAmounts in NOK million
Volume GWh / Oz
Due
Fair value
amount\u00a0
\n1)
\nForward power contracts \ufb01nancial institutions
98
2022
23
52
\nForward power contracts \ufb01nancial institutions
44
2023
4
15
\nPower contract \"30-\u00f8ringen\"
501
2022
167
157
\nPower contract \"30-\u00f8ringen\"
4 011
2023-2030
163
1 378
\nPower contract with Salten Energigjenvinning AS (note 32)
124
2022
35
32
\nPower contract with Salten Energigjenvinning AS (note 32)
1 733
2023-2036
22
555
\nEquity warrants
2022
3
3
\nCommodity contracts Platinum
8 954
2022
0
7
\nTotal fair value contracts within scope of IFRS 9
\n2)
\n417
\n1)
\nNotional value of underlying asset at the end of reporting period, calculated as volume * price * currency rate as at 31 December (if other
\ncurrencies than NOK).
\n2)
\nCertain power contracts are designated as hedging instruments, the remaining contracts / parts of contracts are classi\ufb01ed as \"Assets/
\nliabilities at fair value through pro\ufb01t and loss\".
\n(c) O\ufb00setting
\nFinancial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19941": {
"value": "Principle Financial assets
\nA \ufb01nancial asset or a \ufb01nancial liability is recognised in the
\nstatement of \ufb01nancial position when Elkem becomes party to
\na contract. Assets to be acquired and liabilities to be incurred
\nas a result of a \ufb01rm commitment to purchase or sell goods
\nor services are recognised at the time one of the parties has
\nperformed under the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in
\nthe statement of \ufb01nancial position at fair value plus any
\ntransaction costs directly attributable to the acquisition or
\nissue of the asset. Financial assets are derecognised when
\nthe right to future cash \ufb02ows have expired or been transferred
\nto a third party, once the group has transferred substantially
\nall the risk and rewards of control of these assets. Any rights
\nor obligations retained in any transferred assets are booked
\nseparately as assets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
\nFinancial liabilities
\nNon-derivative \ufb01nancial liabilities include interest-bearing
\nliabilities, bills payable and trade payables. The liabilities are
\ninitially recognised at fair value of the amount required to
\nsettle the associated obligation, net of prepaid costs directly
\nattributable to the liability. Subsequently and insofar, as they
\nare not designated as liabilities at fair value through pro\ufb01t or
\nloss, such liabilities are recognised at amortised cost using the
\ne\ufb00ective interest rate method.
\nFinancial liabilities are derecognised when they are extinguished.
\nDerivatives
\nDerivative \ufb01nancial assets and liabilities include \ufb01nancial
\ninstruments or contracts where the value changes in
\nresponse to the change of a speci\ufb01ed rate, price or index and
\ncommodity contracts within the scope of IFRS 9.
\nDerivatives are initially recognised at fair value at the date
\nwhen the derivative contracts are entered into. Transaction
\ncosts that are directly attributable to the acquisition of
\n\ufb01nancial assets or liabilities at fair value through pro\ufb01t or loss,
\nare recognised immediately in the statement of pro\ufb01t or loss.
\nSubsequently the derivatives are remeasured to their fair value
\nat the end of each reporting period. The resulting gain or loss
\nis recognised in the statement of pro\ufb01t or loss immediately,
\nunless the derivative is designated and is e\ufb00ective as a
\nhedging instrument, in which case the change in fair value is
\nrecognised in statement of pro\ufb01t or loss in the same period(s)
\nas the hedged objects a\ufb00ects the pro\ufb01t or loss.
\nDerivatives are presented as current assets or liabilities, unless
\nthey are expected to be realised more than 12 months after
\nthe reporting period. In that case, they are classi\ufb01ed as non-
\ncurrent assets or liabilities.
\nEmbedded derivatives
\nAn embedded derivative is a component of a hybrid instrument
\nthat also includes a non-derivative host contract with the e\ufb00ect
\nthat some of the cash \ufb02ows of the combined instrument vary in
\na way similar to a stand-alone derivative. Derivatives embedded
\nin \ufb01nancial liability of a non-\ufb01nancial host are separated from
\nthe host and accounted for as separate derivatives if; the
\neconomic characteristics and risks are not closely related to
\nthe host, a separate instrument with the same terms as the
\nembedded derivative would meet the de\ufb01nition of a derivative
\nand the hybrid contract is not measured at fair value through
\npro\ufb01t and loss. Elkem has long-term power contracts settled
\nin other currencies than the entity\u2019s functional currency. The
\ncurrency portion of these contracts is an embedded derivative
\nand is recognised and presented as an independent derivative,
\nsee section derivatives above.
\nCommodity contracts within the scope of IFRS 9
\nNon-\ufb01nancial commodity contracts where the relevant
\ncommodity is readily convertible to cash and where the
\ncontracts are not for own use, fall within the scope of IFRS 9
\nFinancial instruments - recognition and measurement. The
\ngroup currently has energy contracts in Norway that do not
\nmeet the own use criteria, since the power under the contracts
\nis delivered in another grid area to where the plants are located.
\nTransfer between di\ufb00erent grid areas is assessed to be net
\nsettlement and considered to be two di\ufb00erent transactions.
\nSuch contracts are therefore measured at fair value through
\npro\ufb01t or loss and classi\ufb01ed as derivatives, unless they are
\ndesignated as hedging instruments. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19942": {
"value": "Principle Financial assets
\nA \ufb01nancial asset or a \ufb01nancial liability is recognised in the
\nstatement of \ufb01nancial position when Elkem becomes party to
\na contract. Assets to be acquired and liabilities to be incurred
\nas a result of a \ufb01rm commitment to purchase or sell goods
\nor services are recognised at the time one of the parties has
\nperformed under the agreement.
\nAt initial recognition, the \ufb01nancial assets are carried in
\nthe statement of \ufb01nancial position at fair value plus any
\ntransaction costs directly attributable to the acquisition or
\nissue of the asset. Financial assets are derecognised when
\nthe right to future cash \ufb02ows have expired or been transferred
\nto a third party, once the group has transferred substantially
\nall the risk and rewards of control of these assets. Any rights
\nor obligations retained in any transferred assets are booked
\nseparately as assets or liabilities.
\nFinancial assets with a maturity exceeding one year are
\nclassi\ufb01ed as non-current \ufb01nancial assets. Short-term
\ninvestments that do not meet the de\ufb01nitions of a cash
\nequivalent, and \ufb01nancial assets with a maturity of less than
\none year, are classi\ufb01ed as current \ufb01nancial assets.
\nFinancial liabilities
\nNon-derivative \ufb01nancial liabilities include interest-bearing
\nliabilities, bills payable and trade payables. The liabilities are
\ninitially recognised at fair value of the amount required to
\nsettle the associated obligation, net of prepaid costs directly
\nattributable to the liability. Subsequently and insofar, as they
\nare not designated as liabilities at fair value through pro\ufb01t or
\nloss, such liabilities are recognised at amortised cost using the
\ne\ufb00ective interest rate method.
\nFinancial liabilities are derecognised when they are extinguished.
\nDerivatives
\nDerivative \ufb01nancial assets and liabilities include \ufb01nancial
\ninstruments or contracts where the value changes in
\nresponse to the change of a speci\ufb01ed rate, price or index and
\ncommodity contracts within the scope of IFRS 9.
\nDerivatives are initially recognised at fair value at the date
\nwhen the derivative contracts are entered into. Transaction
\ncosts that are directly attributable to the acquisition of
\n\ufb01nancial assets or liabilities at fair value through pro\ufb01t or loss,
\nare recognised immediately in the statement of pro\ufb01t or loss.
\nSubsequently the derivatives are remeasured to their fair value
\nat the end of each reporting period. The resulting gain or loss
\nis recognised in the statement of pro\ufb01t or loss immediately,
\nunless the derivative is designated and is e\ufb00ective as a
\nhedging instrument, in which case the change in fair value is
\nrecognised in statement of pro\ufb01t or loss in the same period(s)
\nas the hedged objects a\ufb00ects the pro\ufb01t or loss.
\nDerivatives are presented as current assets or liabilities, unless
\nthey are expected to be realised more than 12 months after
\nthe reporting period. In that case, they are classi\ufb01ed as non-
\ncurrent assets or liabilities.
\nEmbedded derivatives
\nAn embedded derivative is a component of a hybrid instrument
\nthat also includes a non-derivative host contract with the e\ufb00ect
\nthat some of the cash \ufb02ows of the combined instrument vary in
\na way similar to a stand-alone derivative. Derivatives embedded
\nin \ufb01nancial liability of a non-\ufb01nancial host are separated from
\nthe host and accounted for as separate derivatives if; the
\neconomic characteristics and risks are not closely related to
\nthe host, a separate instrument with the same terms as the
\nembedded derivative would meet the de\ufb01nition of a derivative
\nand the hybrid contract is not measured at fair value through
\npro\ufb01t and loss. Elkem has long-term power contracts settled
\nin other currencies than the entity\u2019s functional currency. The
\ncurrency portion of these contracts is an embedded derivative
\nand is recognised and presented as an independent derivative,
\nsee section derivatives above.
\nCommodity contracts within the scope of IFRS 9
\nNon-\ufb01nancial commodity contracts where the relevant
\ncommodity is readily convertible to cash and where the
\ncontracts are not for own use, fall within the scope of IFRS 9
\nFinancial instruments - recognition and measurement. The
\ngroup currently has energy contracts in Norway that do not
\nmeet the own use criteria, since the power under the contracts
\nis delivered in another grid area to where the plants are located.
\nTransfer between di\ufb00erent grid areas is assessed to be net
\nsettlement and considered to be two di\ufb00erent transactions.
\nSuch contracts are therefore measured at fair value through
\npro\ufb01t or loss and classi\ufb01ed as derivatives, unless they are
\ndesignated as hedging instruments.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19953": {
"value": "At initial recognition, the \ufb01nancial assets are carried in
\nthe statement of \ufb01nancial position at fair value plus any
\ntransaction costs directly attributable to the acquisition or
\nissue of the asset. Financial assets are derecognised when
\nthe right to future cash \ufb02ows have expired or been transferred
\nto a third party, once the group has transferred substantially
\nall the risk and rewards of control of these assets. Any rights
\nor obligations retained in any transferred assets are booked
\nseparately as assets or liabilities.
Financial liabilities are derecognised when they are extinguished. ",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f19982": {
"value": "Derivatives Derivative \ufb01nancial assets and liabilities include \ufb01nancial
\ninstruments or contracts where the value changes in
\nresponse to the change of a speci\ufb01ed rate, price or index and
\ncommodity contracts within the scope of IFRS 9.
\nDerivatives are initially recognised at fair value at the date
\nwhen the derivative contracts are entered into. Transaction
\ncosts that are directly attributable to the acquisition of
\n\ufb01nancial assets or liabilities at fair value through pro\ufb01t or loss,
\nare recognised immediately in the statement of pro\ufb01t or loss.
\nSubsequently the derivatives are remeasured to their fair value
\nat the end of each reporting period. The resulting gain or loss
\nis recognised in the statement of pro\ufb01t or loss immediately,
\nunless the derivative is designated and is e\ufb00ective as a
\nhedging instrument, in which case the change in fair value is
\nrecognised in statement of pro\ufb01t or loss in the same period(s)
\nas the hedged objects a\ufb00ects the pro\ufb01t or loss.
\nDerivatives are presented as current assets or liabilities, unless
\nthey are expected to be realised more than 12 months after
\nthe reporting period. In that case, they are classi\ufb01ed as non-
\ncurrent assets or liabilities.
\nEmbedded derivatives
\nAn embedded derivative is a component of a hybrid instrument
\nthat also includes a non-derivative host contract with the e\ufb00ect
\nthat some of the cash \ufb02ows of the combined instrument vary in
\na way similar to a stand-alone derivative. Derivatives embedded
\nin \ufb01nancial liability of a non-\ufb01nancial host are separated from
\nthe host and accounted for as separate derivatives if; the
\neconomic characteristics and risks are not closely related to
\nthe host, a separate instrument with the same terms as the
\nembedded derivative would meet the de\ufb01nition of a derivative
\nand the hybrid contract is not measured at fair value through
\npro\ufb01t and loss. Elkem has long-term power contracts settled
\nin other currencies than the entity\u2019s functional currency. The
\ncurrency portion of these contracts is an embedded derivative
\nand is recognised and presented as an independent derivative,
\nsee section derivatives above.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20400": {
"value": "(a) Fair value measurement Elkem's \ufb01nancial instruments measured to fair value are
\ncategorised into three levels based on the inputs to the
\nvaluation techniques used to measure fair value.
\nLevel 1 inputs are quoted prices (unadjusted) in active markets
\nfor identical assets or liabilities that the entity can access at the
\nmeasurement date.
\nLevel 2 inputs are inputs, other than quoted prices included
\nwithin level 1, that are observable for the asset or liability, either
\ndirectly or indirectly.
\nLevel 3 inputs are unobservable inputs for the asset or liability.
\nAssets and liabilities measured at fair value 31.12
\nAmounts in NOK million
Level 1
Level 2
Level 3
\nTotal
\n2022
Level 1
Level 2
Level 3
\nTotal
\n2021
\nFinancial assets at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nAssets at fair value through other comprehensive income
\nTotal assets
\n7
\n-
\n-
\n7
\n287
\n(55)
\n-
\n233
\n819
\n1 222
\n18
\n2 058
\n1 113
\n1 167
\n18
\n2 297
\n6
\n-
\n-
\n6
\n39
\n175
\n-
\n214
\n(31)
\n418
\n27
\n414
\n14
\n593
\n27
\n634
\nFinancial liabilities at fair value through pro\ufb01t or loss
\nDerivatives designated in a hedging relationship
\nTotal liabilities
\n-
(27)
\n-
144
\n-
117
\n42
\n-
\n42
\n15
\n144
\n159
\n-
(87)
\n-
138
\n-
51
\n203
\n-
\n203
\n116
\n138
\n254
\nLevel 1:
\nFinancial assets measured at level 1 apply to external quoted
\nshares, which are measured based on the quoted prices.
\nDividends from the external shares are classi\ufb01ed as other items.
\nLevel 2:
\nFinancial assets and liabilities measured at level 2 applies
\nto forward currency contracts, commodity contracts and
\nembedded currency derivatives.
\nThe contracts are measured at fair value by estimating the
\nfuture cash \ufb02ows.
\nLevel 3:
\nThe \ufb01nancial assets and liabilities at fair value through pro\ufb01t
\nor loss measured at level 3 consist of power contracts,
\ncontingent consideration and shares in unlisted companies.
\nThe power contracts are assessed to be settled net in cash
\nand are therefore within the scope of IFRS 9 and recognised as
\n\ufb01nancial instruments.
\nWhen valuing the power contracts observable data is used,
\nsuch as power price, currency rates, CPI and CfD, when
\navailable. The power prices for long-term electricity contracts
\nin Norway are not directly observable in the market for the
\nwhole contract length. Power prices are observable until 2031,
\nCfD prices are only observable for a short time period and
\ncurrency rates are observable until 2026. Valuation of the
\ncontracts for the remaining periods are based on the latest
\nobservable data adjusted for CPI, if relevant.
\nOverview of contracts and the assumptions used for
\nassessment of fair value for the level 3 contracts
\nPower contract \"30-\u00f8ringen\"
\n\"30-\u00f8ringen\" power contract lasts until 31 December 2030
\nand the power from the contract is restricted to be used at
\nElkem ASA plants. For the years 2019 - 2020 the price under
\nthe contract was \ufb01xed except if the spot price at the relevant
\ngrid points exceeds a certain threshold, in which case the price
\nequals the spot price. For the last 10 years of the contract,
\nstarting 1 January 2021, the price is \ufb01xed based on the average
\nspot price the \ufb01ve years preceding 1 January 2021, adjusted
\nfor in\ufb02ation. The \ufb01xed price and the threshold price are
\nbased on a start date and thereafter adjusted with in\ufb02ation
\nannually. Changes in fair value for the \"30-\u00f8ringen\" contract
\nwas classi\ufb01ed as other items before 1 January 2021. Due to the
\nchange in the contact's price structure of the instrument from
\n2021, the contract is designated as a hedging instrument from
\n1 January 2021. This means that fair value changes from the
\ne\ufb00ective part of the hedging relationship from 1 January 2021
\nis recognised as raw materials and energy for production in
\nstatement of pro\ufb01t or loss in the same period(s) as the hedged
\nobjects a\ufb00ects the pro\ufb01t or loss. The ine\ufb00ective part of the
\nhedging relationship is recognised in other items.
\nPower contract with Salten Energigjenvinning AS
\nOn 31 January 2022 entered into agreement to purchase the
\nremaining 50% of the shares in Salten Energigjenvinning AS.
\nThe company was subsequently merged into Elkem ASA. The
\npower contract was therefore de-recognised at the date of
\nthe merger.
Assumptions for valuation of the contracts
\n\u2192
Discount rate: 4,87% (3.5%) p.a. for the \"30-\u00f8ringen\"
\npower contract. The assumptions are based on the
\nestimated risk of the contract, including credit risk.
\n\u2192
In\ufb02ation: 2% (2%) p.a.
\n\u2192
Power prices: Market prices per 31 December 2022
\nuntil 2031.
\n\u2192
CfDs: 4-year average historic CfD prices based on Nord
\nPool prices.
\n\u2192
Exchange rate EUR: Observable rates for the next 5
\nyears, thereafter calculated rates based on long-term
\ninterest rates.
\nFor external shares measured at level 3, book value of equity
\nadjusted for excess values at purchase date is used as an
\napproximation of fair value.
\nSee note 24 Provision and other liabilities for value of
\ncontingent liabilities.
\nMovements in fair value measurement level 3
\nAmounts in NOK million
2022
2021
\nOpening balance
212
(348)
\nAcquisition / business combinations
(58)
-
\nTransfer to / from other levels
3
-
\nChange in fair value recognised in OCI, cash \ufb02ow hedges
1 227
737
\nHedge ine\ufb00ectiveness
1 391
-
\nDisposal
(5)
-
\nSettlement / realised e\ufb00ects
(735)
(157)
\nOther changes in fair value through pro\ufb01t or loss, unrealised
(7)
(9)
\nCurrency translation di\ufb00erences
(12)
(13)
\nClosing balance
2 016
212",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f20942": {
"value": "(c) O\ufb00setting Financial assets
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n2 123
\n147
\n2 269
\n(1)
\n-
\n(1)
\n2 122
\n147
\n2 268
\n-
\n21
\n21
\n-
\n-
\n-
\n2 122
\n168
\n2 289
\nFinancial liabilities
\n31 December 2022
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial assets
\nset o\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n23
\n86
\n109
\n(1)
\n-
\n(1)
\n22
\n86
\n108
\n-
\n21
\n21
\n-
22
\n-
108
\n-
129
\nFinancial assets
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\n\ufb01nancial
\nassets
\nGross amount
\nof \ufb01nancial
\nliabilities set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nassets
\nrecognised /
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n414
\n170
\n585
\n-
\n-
\n-
\n414
\n170
\n585
\n-
\n16
\n16
\n-
\n-
\n-
\n414
\n186
\n601
\nFinancial liabilities
\n31 December 2021
\nAmounts in NOK million
\nGross
\namount of
\nrecognised
\n\ufb01nancial
\nliabilities
\nGross amount
\nof recognised
\n\ufb01nancial
\nassets set
\no\ufb00 in the
\nstatement
\nof \ufb01nancial
\nposition
\nNet
\namounts
\nof \ufb01nancial
\nliabilities
\npresented
\nFinancial
\ninstruments
\nnot set o\ufb00 in
\nthe statement
\nof \ufb01nancial
\nposition
\nCash
\ncollateral
\npledged
\nNet
\namount
\nPower contracts including embedded derivatives
\nForward currency contracts
\nTotal
\n17
\n24
\n41
\n-
17
\n-
24
\n-
41
\n-
\n16
\n16
\n-
17
\n-
40
\n-
57",
"dimensions": {
"concept": "ifrs-full:DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21155": {
"value": "26. HedgingElkem's hedging instruments
\nCash \ufb02ow hedge
\nElkem has forward currency contracts, embedded EUR
\nderivatives in power contracts and a EUR loan amounting
\nto EUR 5 million (EUR 11 million) where the spot element
\nis designated as hedging instruments and Elkem's highly
\nprobable future revenue in corresponding currencies is
\ndesignated as the hedging objects in this hedging relationship,
\nde\ufb01ned as a cash \ufb02ow hedge. In addition certain power
\ncommodity contracts, de\ufb01ned as \ufb01nancial instruments, are
\ndesignated as hedging instruments in a cash \ufb02ow hedge of
\nprice \ufb02uctuations for highly probable future purchases. Hence,
\nthe e\ufb00ective part of changes in fair value of the \ufb01nancial
\ninstruments is booked against OCI, and recycled to pro\ufb01t or
\nloss as an adjustment of revenue and power cost (included in
\nraw materials and energy for production) when realised. The
\nine\ufb00ective part of changes in the fair value of the \ufb01nancial
\ninstrument is recognised in other items in the statement of
\npro\ufb01t and loss.
\nNet investment hedge
\nElkem entered in 2017 into a bank loan amounting to EUR
\n275 million. In 2018 the bank loan of EUR 275 million was re-
\n\ufb01nanced and increased to EUR 400 million. In 2022 the loan
\nwas re\ufb01nanced again and increased to EUR 500 million. The
\nspot rate of the initial loan amount, EUR 275 million, has been
\ndesignated as a hedge of the net investment in the group\u2019s
\nsubsidiaries with EUR as functional currency. The fair value
\nand carrying amount of the borrowing at 31 December 2022
\nwas NOK 2,891 million (NOK 2,749 million). The change foreign
\nexchange gain of NOK 142 million (a gain of NOK 130 million)
\non translation of the borrowing from EUR to NOK at the end
\nof the reporting period is recognised in other comprehensive
\nincome and accumulated in the foreign currency translation
\nreserve in the statement of changes in equity. There was no
\nine\ufb00ectiveness to be recorded from net investment hedges.
\nSee note 27 Financial risk for Elkem's hedging policy.
\nCash \ufb02ow hedging instruments, by type
\nAmounts in NOK million
\n31.12.2022
\nAssets
\nfair value
\n31.12.2022
\nLiabilities
\nfair value
\n31.12.2021
\nAssets
\nfair value
\n31.12.2021
\nLiabilities
\nfair value
\nForward currency contracts
\nPower contracts \ufb01nancial institutions
\nPower contract \"30-\u00f8ringen\"
\nPower contract Salten Energigjenvinning AS
\nPower contracts embedded derivatives
\nCurrency e\ufb00ect loan EUR
\nCommodity contracts Platinum
\nTotal hedging instruments
\n110
\n28
\n1 235
\n-
\n(207)
\n-
\n1
\n1 167
\n80
\n-
\n-
\n-
\n56
\n8
\n-
\n144
\n146
\n27
\n364
\n58
\n-
\n-
\n-
\n593
\n18
\n-
\n-
\n-
\n110
\n10
\n-
\n138
\nLess non-current portion:
\nForward currency contracts
\nPower contracts \ufb01nancial institutions
\nPower contract \"30-\u00f8ringen\"
\nPower contract Salten Energigjenvinning AS
\nPower contracts embedded derivatives
\nCurrency e\ufb00ect loan EUR
\nCommodity contracts Platinum
\nCurrent portion of hedging instruments
\n87
\n-
\n861
\n-
\n(207)
\n-
\n-
\n427
\n-
\n-
\n-
\n-
\n-
\n-
\n-
\n144
\n102
\n4
\n180
\n22
\n-
\n-
\n-
\n285
\n-
\n-
\n-
\n-
\n88
\n5
\n-
\n45
\nAs at 31 December 2022 \ufb01nancial power contracts designated
\nin a hedging relationship comprise 15% of expected
\nconsumption in Norway in 2023 and about 14% in the period
\n2024 - 2030.
\nElkem has hedged approximately 19% of the expected
\nrevenues in EUR and approximately 7% of expected revenues
\nin USD for 2023. For the years 2024-2034 EUR is hedged at a
\nrange of 1 - 5%.
\nFinancial instruments
\n31 December 2022
E\ufb00ects to be recycled from OCI
\nHereof
Within
\nNet fair
recognised
Within
Within
Within
4 years
\nAmounts in NOK million
value
in OCI
1 year
2 years
3 years
or more
\nForward currency contracts
60
30
(57)
33
46
7
\nEmbedded EUR derivatives
20
(263)
(56)
(51)
(49)
(108)
\nPower contracts
2 080
1 263
402
229
167
464
\nWarrants
\n2)
\n3
-
-
-
-
-
\nCommodity contracts Platinum
1
1
1
-
-
-
\nTotal
\n1)
\n2 164
1 031
291
211
165
364
\nEUR loan designed as cash \ufb02ow hedging instrument
(56)
(8)
(8)
-
-
-
\nTotal
1 023
283
211
165
364
\nFinancial instruments
E\ufb00ects to be recycled from OCI
\n31 December 2021
\nHereof
Within
\nNet fair
recognised in
Within
Within
Within
4 years
\nAmounts in NOK million
value
OCI
1 year
2 years
3 years
or more
\nForward currency contracts
146
127
25
24
29
49
\nEmbedded EUR derivatives
(17)
(110)
(21)
(21)
(19)
(48)
\nPower contracts
414
448
242
57
32
117
\nWarrants
\n2)
\n3
-
-
-
-
-
\nCommodity contracts Platinum
0
0
0
-
-
-
\nTotal
\n1)
\n547
465
245
60
42
118
\nEUR loan designed as cash \ufb02ow hedging instrument
(107)
(10)
(5)
(5)
-
-
\nTotal
455
240
54
42
118
\n1)
\nHedge accounting is applied for certain contracts and for parts of contracts.
\n2)
\nSubscription SAFE (Simple Agreement for Future Equity)
\nOf total changes in fair value of power contracts designated
\nas hedging instruments NOK 1,471 million (NOK 124 million) is
\nrecognised in pro\ufb01t or loss, and classi\ufb01ed as other items (see
\nnote 12 Other items), due to ine\ufb00ectiveness in the hedging
\nrelationship and discontinuation of hedging. The ine\ufb00ectiveness
\non cash \ufb02ow hedges relates to Elkem's hedges of future power
\npurchase. The ine\ufb00ectiveness is caused by the extraordinary
\ndevelopments in the Norwegian power market with signi\ufb01cant
\ndi\ufb00erences in prices between the di\ufb00erent price areas.
\nConsequently, the cumulative change in fair value of some of the
\nhedging instruments are higher than the cumulative changes
\nin the present value of the hedge objects from the inception of
\nthe hedge. The di\ufb00erence between the two is the recognised
\nas ine\ufb00ectiveness. Of the NOK 1,471 million recognised in 2022,
\nNOK 1,422 million relates to hedge ine\ufb00ectiveness caused by
\nthese price di\ufb00erences. The remaining gain of NOK 49 million
\nis related to discontinuation of power hedging caused by
\nfurnace closures in Norway. For 2021 the entire ine\ufb00ectiveness
\nof NOK 124 million is caused by price di\ufb00erences. E\ufb00ects from
\nrecognition of ine\ufb00ectiveness from forward currency contracts
\nare NOK 0 million (NOK 3 million).
Realised e\ufb00ects hedge accounting
\nAmounts in NOK million
31.12.2022
31.12.2021
\nRealised e\ufb00ects from forward currency contracts, recognised in revenue
(14)
127
\nRealised e\ufb00ects from embedded derivatives EUR, recognised in revenue
(29)
(31)
\nRealised e\ufb00ects from EUR loans, recognised in revenue
(5)
(4)
\nRealised e\ufb00ects from platinum contracts, included in Revenues
0
-
\nRealised e\ufb00ects from power contracts, recognised in raw materials and energy for production
377
190
\nRealised e\ufb00ects hedge discontinuation, recognised in other items
38
-
\nRealised e\ufb00ects Salten Energigjenvinning, business combination (note 4)
58
-
\nTotal realised e\ufb00ects hedge accounting
424
282
\nIn addition, Elkem applies hedge accounting principles related
\nto currency risk from a net investment in foreign operation, see
\nnote 23 Interest-bearing assets and liabilities.
\nMovements in OCI related to hedging instruments
\n2022
\nOpening
Net change
Reclassi\ufb01ed
Closing
\nAmounts in NOK million
balance
in fair value
to P&L
balance
\nHedging of future sales, forward currency contracts
127
(112)
14
30
\nHedging of future need for power, contracts with \ufb01nancial institutions
27
57
(56)
28
\nHedging of future need for power, contract \"30-\u00f8ringen\"
\n2)
\n364
1 230
(359)
1 235
\nHedging of future need for power, contract Salten Energigjenvinning,
\nbusiness combination (see note 4)
58
0
(58)
-
\nHedging of future sales, embedded EUR derivatives in own use power contracts
\n1)
\n(110)
(182)
29
(263)
\nHedging of future sales, currency e\ufb00ects EUR loan
(10)
(3)
5
(8)
\nHedging of future sales, platinum contracts
\n2)
\n0
2
(0)
1
\nTotal (before tax)
455
992
(424)
1 023
\nMovements in OCI related to hedging instruments
\n2021
\nAmounts in NOK million
\nOpening
\nbalance
\nNet change
\nin fair value
\nReclassi\ufb01ed
\nto P&L
\nClosing
\nbalance
\nHedging of future sales, forward currency contracts
\nHedging of future need for power, contracts with \ufb01nancial institutions
\nHedging of future need for power, contract \"30-\u00f8ringen\"
\n2)
\nHedging of future need for power, contracts with Statkraft (swap)
\n1)
\nHedging of future need for power, contract with Salten Energigjenvinning
\nHedging of future sales, embedded EUR derivatives in own use power contracts
\n1)
\nHedging of future sales, currency e\ufb00ects EUR loan
\nHedging of future sales, platinum contracts
\n2)
\nTotal (before tax)
\n150
\n(6)
\n-
\n(3)
\n(29)
\n(332)
\n(23)
\n-
\n(242)
\n104
\n65
\n501
\n15
\n94
\n191
\n8
\n0
\n979
\n(127)
\n(33)
\n(138)
\n(12)
\n(8)
\n31
\n4
\n-
\n(282)
\n127
\n27
\n364
\n0
\n58
\n(110)
\n(10)
\n0
\n455
\n1)
\nHedge accounting from 2016.
\n2)
\nHedge accounting from 2021.
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDetailedInformationAboutHedgesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21158": {
"value": "Principle Hedge accounting
\nElkem has applied IFRS 9 for hedge accounting. According
\nto Elkem's policy, derivatives can be designated as hedging
\ninstruments for fair value hedges and cash \ufb02ow hedges. At the
\ninception of the hedge relationship, the entity documents the
\nrelationship between the hedging instrument and the hedged
\nitem, along with its risk management objectives and its
\nstrategy for undertaking various hedge transactions.
\ni) Cash \ufb02ow hedges
\nThe e\ufb00ective portion of changes in the fair value of derivatives
\nthat are designated and qualify as cash \ufb02ow hedges, are
\nrecognised in other comprehensive income and accumulated
\nunder the heading of cash \ufb02ow hedging reserve. The gain
\nor loss relating to the ine\ufb00ective portion is recognised
\nimmediately in the statement of pro\ufb01t or loss and classi\ufb01ed as
\nother items. Realised e\ufb00ects are recognised through statement
\nof pro\ufb01t or loss, in the same line item as the hedged objects.
\nii) Net investment hedges
\nHedges of net investments in foreign operations are accounted
\nfor similarly to cash \ufb02ow hedges. Any gain or loss on the
\nhedging instrument relating to the e\ufb00ective portion of the
\nhedge is recognised in other comprehensive income and
\nincluded in foreign currency translation reserve in equity. The
\ngain or loss relating to the ine\ufb00ective portion is recognised
\nimmediately in the statement of pro\ufb01t or loss within other
\nitems. Gains and losses accumulated in equity are reclassi\ufb01ed
\nto the statement of pro\ufb01t or loss when the foreign operation is
\npartially disposed of or sold.
\nWhen a hedging instrument expires or is sold, or when a
\nhedge no longer meets the criteria for hedge accounting, any
\ncumulative gain or loss existing in comprehensive income at
\nthat time remains in equity and is recognised in the statement
\nof pro\ufb01t or loss when the forecast transaction is ultimately
\nrecognised in the statement of pro\ufb01t or loss. When a forecast
\ntransaction is no longer expected to occur, the cumulative gain
\nor loss reported in equity is immediately transferred to the
\nstatement of pro\ufb01t or loss.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21683": {
"value": "27. Financial risk Elkem is exposed to \ufb01nancial risks from \ufb02uctuations in market
\nprices for \ufb01nished goods, raw materials, currency exchange
\nrates and interest rates (a) Market risk. In addition, Elkem is
\nexposed to \ufb01nancial risks related to (b) Counterparty credit
\nrisk (c) Liquidity risk and (d) Climate risk. This may have
\nconsiderable impact on Elkem\u2019s \ufb01nancial performance.
\nElkem\u2019s principle is to organise resources close to the value
\nchain. Risk management is an integrated part of Elkem\u2019s
\nbusiness activities, included in the line management\u2019s
\nresponsibility. Financial risks, including \ufb01nancing, liquidity,
\ncurrency, interest rates, and counterparty risks are generally
\nmanaged centrally by Group Finance and Treasury. Elkem has
\n\ufb01nancial risk policies in place, approved by the board
\nof directors.
\nElkem\u2019s \ufb01nancial risk exposure and business performance are
\nevaluated regularly, and the main risks are analysed in terms
\nof impact, likelihood and correlation. Based on the overall risk
\nevaluation Elkem may accept or seek to further reduce the
\nrisks arising from operational activities.
\n(a) Market risk
\n(i) Price risk
\nCommodity prices
\nElkem is exposed to \ufb02uctuations in market prices for \ufb01nished
\ngoods and raw materials. The market risk assessment is
\nbased on a holistic approach as prices for Elkem\u2019s products
\ntend to \ufb02uctuate with underlying macroeconomic conditions.
\nThe same dynamics tend to apply to prices for the main raw
\nmaterials, giving Elkem a certain degree of natural hedging.
\nFor the main upstream products and raw materials Elkem
\nseeks to reduce the risk exposure by entering sales and
\npurchase contracts for corresponding time periods and
\nvolumes. The goal is to partly o\ufb00set changes in sales prices
\nthrough changes in raw material costs.
\nA signi\ufb01cant part of Elkem's sales consist of specialised
\nproducts. These products have generally more stable pricing.
\nElkem\u2019s integrated value chain mitigates the supply chain and
\npricing risks and also give \ufb02exibility to realise value at various
\nlevels through the value chain. Elkem aims to ensure sales
\nvolumes and raw material supply by entering into long-term
\ncustomer relationships.
\nPower
\nElectric power is a key input factor and Elkem enters into long-
\nterm power contracts to reduce the future exposure to changes
\nin power prices, particularly in Norway where electricity prices
\nbased on hydro power tend to have di\ufb00erent pricing dynamics
\nthan for Elkem\u2019s products and other raw materials.
\nNormally all plants have covered their main future need
\nfor power by entering into power contracts, primarily
\nclassi\ufb01ed as own use contracts according to IFRS 9, hence
\nsuch contracts are o\ufb00-balance. In addition to the own use
\ncontracts certain \ufb01nancial power contracts are classi\ufb01ed as
\nderivatives and designated in a cash \ufb02ow hedging relationship
\nin accordance with IFRS (see notes 25 and 26). For plants
\nlocated in Norway, Elkem\u2019s policy is that minimum 80% of the
\nexpected power consumption shall be covered by \ufb01xed price
\ncontracts for current and next year. This includes both own
\nuse and derivative contracts at fair value. For the following
\nperiods, the ratio extends until 4 years ahead, declining with
\n10%-point per year ending at 50%. Elkem currently ful\ufb01ls this
\nminimum hedge policy, and also has a substantial amount
\nof contracts at \ufb01xed price for the later years. Optimisation
\nof 24-hour-, seasonal- and capacity utilisation variations are
\nsolved through utilising \ufb01nancial and physical contracts that
\nare traded bilaterally. The purpose of entering into long term
\npower contracts is to reduce volatility in the power cost and
\nto increase the predictability of the cost base. Fair value of
\ncommodity contracts is especially sensitive for future changes
\nin energy prices.
\nChanges in fair value of commodity contracts, classi\ufb01ed as
\n\ufb01nancial instruments, re\ufb02ect unrealised gains or losses, and
\nare calculated as the di\ufb00erence between market price and
\ncontract price, discounted to present value. Valuations are
\nbased on market information where this is available, if not,
\nvaluations are based on estimated market price for non-
\nobservable parameters.
\nValuation of the power contracts
\nThe assumptions for the fair value measurement of power
\ncontracts are described in note 25 Financial assets and liabilities.
\nSensitivity analysis - power contracts
\nSensitivity on the \"30-\u00f8ringen\" contract is as follows.
\"30-\u00f8ringen\" contract
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Fair value
Adjusted NPV
Fair value
Adjusted NPV
\nDiscount rate (used 4.9% (3.5%))
change with -3.5 %-point
2 037
2 239
330
360
\nDiscount rate (used 4.9% (3.5%))
change with +3.5 %-point
2 037
1 869
330
319
\nCPI (used 2.0%)
change to 1%
2 037
2 084
330
379
\nCPI (used 2.0%)
change to 3%
2 037
1 988
330
279
\nPower price
decrease -10%
2 037
1 721
330
166
\nPower price
increase + 10%
2 037
2 353
330
494
\n(ii) Currency risk
\nElkem has revenues and operating costs in various currencies.
\nThe prices of \ufb01nished goods are to a large extent determined
\nin international markets, primarily denominated in US dollar,
\nChinese yuan and Euro. This is partly o\ufb00set by purchases of
\nraw materials denominated in the same currencies. Elkem
\naims to establish natural hedging positions if this is possible
\nand economically viable. Financial derivatives are then used
\nto hedge the remaining net currency risk exposures. Elkem
\nhas net positive operating cash \ufb02ows in mainly Euro, US
\ndollar, Chinese yuan and Brazilian real. Due to the location
\nof its plants, Elkem has net cost positions in certain other
\ncurrencies, mainly Norwegian krone, but also Canadian
\ndollar and Icelandic krona.
\nElkem's policy is to hedge the net positive cash \ufb02ows in
\nforeign currencies against NOK to even out \ufb02uctuations in
\nresult and cash \ufb02ow. The target is to hedge expected net
\ncash \ufb02ow for 0\u20133 months on a 90% hedging ratio. Expected
\nnet cash \ufb02ow for 4\u201312 months should be hedged on a rolling
\nbasis targeting a 45% hedging ratio. The hedging ratio for
\n4\u201312 months may vary subject to internal approval. Chinese
\nyuan (CNY) is not included in the hedging programme. Elkem
\nhas hedged Japanese yen until 2026, related to a long-term
\ncustomer contract. Elkem uses hedge accounting for all cash
\n\ufb02ow hedges over 3 months. Embedded EUR derivatives in
\npower contracts are included in the foreign exchange hedging
\nprogramme. To ensure an e\ufb00ective hedge, according to the
\nhedge accounting principles, the spot element of the forward
\ncurrency contracts is designated as hedging instruments and
\nhighly probable future revenue as hedging object in a hedging
\nrelationship, covering the exposure beyond 3 months.
\nElkem realised a loss of NOK 49 million from hedging
\nprogramme (gain of NOK 92 million).
\nElkem aims to mitigate the currency risk in the statement of
\n\ufb01nancial position by keeping interest-bearing debt in the same
\ncurrencies as the group\u2019s assets. Elkem has mainly interest-
\nbearing debt in Euro, Chinese yuan and Norwegian krone.
\nCurrency e\ufb00ects recognised in total comprehensive income
\nfor the year, excluding e\ufb00ects from cash \ufb02ow hedging
\nAmounts in NOK million
2022
2021
\nNet foreign exchange gains (losses) - forward currency contracts - recognised in other items
9
14
\nOperating foreign exchange gains (losses) - recognised in other items
387
20
\nNet foreign currency exchange gains (losses) on \ufb01nancing activities - recognised in foreign exchange gains (losses)
85
241
\nCurrency translation di\ufb00erences - recognised in other comprehensive income
765
358
\nHedging of net investment in foreign operations - recognised in other comprehensive income
(142)
130
\nTotal
1 104
764
\nCurrency exposure
\nThe amounts in the tables below are translated to NOK using
\nexchange-rates against NOK per 31 December.
\nExchange rates against NOK per 31 December
\n2022
2021
\nUSD
9.8714
8.8242
\nEUR
10.5130
9.9978
\nCNY
1.4309
1.3891
\nCAD
7.2879
6.9449
\nCurrency exposure a\ufb00ecting statement of pro\ufb01t or loss
\nThe tables show carrying amount of assets and liabilities
\ndenominated in foreign currencies di\ufb00erent from the entities
\nfunctional currency, where changes in currency rates will a\ufb00ect
\npro\ufb01t and loss. The tables include notional amount of currency
\nexchange contracts (note 25 Financial assets and liabilities).
\nAmounts are presented in NOK based on currency rates as at
\n31 December.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
662
98
-
-
-
-
759
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 658
3 124
489
(265)
0
459
5 466
\nTotal monetary assets
2 320
3 222
489
(265)
0
459
6 225
\nInterest-bearing liabilities
-
6 505
-
-
-
-
6 505
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
592
232
-
-
-
37
862
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
592
6 738
-
-
-
37
7 367
\nDerivatives, notional value
780
6 033
-
-
-
468
7 281
\nNet currency exposure \ufb01nancial position
948
(9 549)
489
(265)
0
(46)
(8 423)
31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
927
457
-
-
0
98
1 483
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 172
25
80
(95)
0
387
1 570
\nTotal monetary assets
2 100
482
80
(95)
0
485
3 052
\nInterest-bearing liabilities
-
6 773
-
-
-
-
6 773
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
442
117
3
0
2
56
620
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
442
6 890
3
0
2
56
7 393
\nDerivatives, notional value
399
5 598
-
-
-
631
6 629
\nNet currency exposure \ufb01nancial position
1 258
(12 006)
77
(95)
(1)
(202)
(10 969)
\nSensitivity on pro\ufb01t and loss from
\n\ufb01nancial assets and liabilities
\nThe following tables demonstrate the sensitivity to a reasonable
\npossible change in EUR and USD exchange rates by 5%, with
\nall other variables held constant. The impact on Elkem\u2019s pro\ufb01t
\nbefore tax is due to changes in the fair value of monetary
\nassets and liabilities including foreign currency derivatives and
\nembedded derivatives not designated for hedging. The impact
\non Elkem\u2019s pre-tax equity is due to changes in the fair value of
\nforward exchange contracts designated as cash \ufb02ow hedges
\nand net investment hedges. The impact on pre-tax equity
\nwould be booked against OCI and recycled through pro\ufb01t
\nbefore tax, when the hedged items are realised. In addition the
\npro\ufb01t and loss will be a\ufb00ected by translation di\ufb00erences on
\nintra group balances, mainly in EUR, USD and CNY.
\nCurrency
31.12.2022
31.12.2021
\nAmounts in NOK million
\nChange in
\nFX rate
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nEUR
5 %
(46)
(431)
(194)
(410)
\nEUR
-5 %
46
431
194
410
\nUSD
5 %
79
(31)
70
(16)
\nUSD
-5 %
(79)
31
(70)
16
\nCurrency exposure a\ufb00ecting currency
\ntranslation di\ufb00erences / equity
\nThe table shows Elkem's total assets and liabilities
\ndenominated in the group's main currencies translated to NOK
\nat the currency rates at 31 December and gives an overview
\nof the group's total currency exposure that will a\ufb00ect currency
\ntranslation di\ufb00erences both in the consolidated statement of
\ncomprehensive income and / or pro\ufb01t and loss.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
64
399
113
40
67
34
716
\nTrade receivables
1 451
452
1 644
29
3
668
4 248
\nOther assets
64
215
236
32
938
213
1 698
\nRestricted deposits
7
0
400
-
-
1
408
\nCash and cash equivalents
2 017
3 363
2 083
(60)
998
854
9 255
\nTotal monetary assets
3 603
4 429
4 476
41
2 006
1 771
16 325
\nAsset non-monetary items
2 828
5 917
12 311
1 278
12 264
1 858
36 455
\nTotal assets
6 431
10 345
16 787
1 319
14 270
3 628
52 781
\nInterest-bearing liabilities
31
6 620
1 066
-
2 753
66
10 535
\nOther liabilities
25
193
334
36
605
351
1 545
\nTrade payables
778
1 277
2 341
96
630
212
5 335
\nBills payable
-
-
1 742
-
-
-
1 742
\nTotal monetary liabilities
834
8 090
5 485
132
3 988
628
19 158
\nLiabilities non-monetary items
169
694
310
391
3 080
204
4 849
\nTotal liabilities
1 004
8 785
5 794
524
7 069
832
24 007
\n31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
47
285
43
-
72
31
478
\nTrade receivables
1 387
660
1 549
21
184
497
4 297
\nOther assets
20
185
262
12
939
134
1 551
\nRestricted deposits
2
-
604
-
3
-
609
\nCash and cash equivalents
1 438
219
1 448
221
3 066
647
7 040
\nTotal monetary assets
2 894
1 349
3 906
254
4 264
1 308
13 976
\nAsset non-monetary items
1 864
4 878
11 162
837
7 710
1 423
27 874
\nTotal assets
4 758
6 227
15 068
1 092
11 974
2 731
41 850
\nInterest-bearing liabilities
38
6 083
1 144
-
3 038
77
10 380
\nOther liabilities
39
225
469
25
664
235
1 657
\nTrade payables
567
1 049
1 705
95
1 011
186
4 614
\nBills payable
-
-
2 096
-
-
-
2 096
\nTotal monetary liabilities
644
7 357
5 414
121
4 714
498
18 747
\nLiabilities non-monetary items
\nTotal liabilities
\n139
\n782
\n709
\n8 065
\n606
\n6 020
\n188
\n308
\n1 403
\n6 117
\n184
\n683
\n3 228
\n21 976
\n(iii) Interest rate risk
\nElkem's interest rate risk arises from interest-bearing liabilities
\ngranted by external \ufb01nancial institutions. Elkem's liabilities are
\nmainly drawn in Euro, Chinese yuan and Norwegian krone.
\nElkem has a \ufb02oating interest rate policy and is hence exposed
\nto \ufb02uctuating interest rates. Prices and sales volumes for
\nElkem's core products tend to correlate with general economic
\nconditions. A \ufb02oating interest rate policy is therefore seen as
\nappropriate from a \ufb01nancial risk perspective. Interest rates
\nhave stayed low for a number of years due to a low-rate
\neconomic environment. During 2022 the interest rate has
\nincreased as many central banks have in\ufb02ation targets and
\nhave adjusted interest rates to control a higher rise in the price
\nlevel than targeted. With \ufb02oating interest rates the group will
\nnormally be in a position to bene\ufb01t from lower interest rates in
\nan economic downturn, but a \ufb02oating rate policy will also leave
\nthe group exposed to futhure interest rate hikes.
Elkem has the following interest-bearing assets and liabilities
\n31 December 2022
\nAmounts in NOK million
Floating
Fixed
Total
\nInterest-bearing liabilities
12 120
158
12 278
\nInterest-bearing assets
9 718
-
9 718
\nNet exposure
2 402
158
2 559
\nSensitivity
\nThe interest rate sensitivity is based on a parallel shift in the
\ninterest rates that Elkem is exposed to. If interest rates had
\nbeen 100 basis points higher for a full year, based on net debt
\nas at 31 December 2022, with all other variables held constant,
\nthe pro\ufb01t (loss) for the year would have been NOK 20 million
\n(NOK 38 million) lower. An overview of Elkem's debt portfolio is
\npresented in note 23 Interest-bearing assets and liabilities.
\n(b) Counterparty credit risk
\nCredit risk is the risk of \ufb01nancial losses to the group if a
\ncustomer or counterparty fails to meet contractual obligations.
\nFor Elkem this arises mainly to trade receivable and \ufb01nancial
\ntrading counterparties.
\nTrade receivables are generally secured by credit insurance
\nfrom a reputable credit insurance company. For customers
\nwhere credit insurance cannot be obtained, other methods
\nare generally used to secure the sales proceeds, such as
\nprepayment, letter of credit, documentary credit or guarantees.
\nIn particular, when sales are made in countries with a high
\npolitical risk, or to remote customers, trade \ufb01nance products
\nare used to reduce the credit risk. Of Elkem's revenue outside
\nChina 85% - 95% is covered by credit insurance or other trade
\n\ufb01nance tools.
\nElkem realised credit losses of NOK 5 million (NOK 12 million)
\ntrade receivables. The maximum exposure to credit risk for
\ntrade receivables for the group is NOK 4,257 million per 31
\nDecember 2022 (NOK 4,306 million). Please also refer to note
\n21 Trade receivables.
\nEvaluation of \ufb01nancial counterparties is based on external credit
\nratings from Moody's and / or Standard and Poor's. The general
\npolicy is that \ufb01nancial counterparties should have a rating
\nequal to, or higher than, A- (or the equivalent) from the rating
\nagencies, but exceptions may be made on a case-by-case basis,
\nmainly for local banks in emerging markets. Elkem has not had
\nany losses in 2022 or 2021 related to \ufb01nancial counterparties.
\n(c) Liquidity risk
\nLiquidity risk is the risk that the group will encounter di\ufb03culty
\nin meeting the obligations associated with its \ufb01nancial
\nliabilities. Elkem is exposed to liquidity risk related to its
\noperations and \ufb01nancing.
\nElkem's cash \ufb02ow will \ufb02uctuate due to economic conditions
\nand \ufb01nancial performance. In order to assess its future
\noperational liquidity risk, short-term and long-term cash \ufb02ow
\nforecasts are provided. The short-term forecast is updated
\neach week, and the long-term cash \ufb02ow projection is updated
\neach quarter.
\nIn order to mitigate the operational liquidity risk, Elkem
\nhas cash and revolving credit facilities with banks. As at 31
\nDecember 2022 Elkem has unrestricted cash of NOK 9,255
\nmillion (NOK 7,040 million). In addition, revolving credit
\nfacilities amount to NOK 6,356 million (NOK 3,144 million), of
\nwhich NOK 6,342 million is undrawn (NOK 3,144 million).
\nThe external loan agreements contain two \ufb01nancial covenants.
\nThe ratio of EBITDA to consolidated Net interest payable,
\nas de\ufb01ned herein, for each measurement period, where the
\nperiod is calculated as the 12 months ending on the last day
\nof a \ufb01nancial quarter, must exceed 4. Additionally, the ratio of
\ntotal equity to total assets must be more than 30% at all times.
\nElkem complies with these covenants as of 31 December 2022
\nand also complied with the covenants as of 31 December 2021,
\nsee note 23 Interest-bearing assets and liabilities.
\nThe policy is to have cash and available credit facilities to cover
\nknown capital needs and generally not less than 10% of annual
\ntotal operating income. In addition, the policy is to ensure that
\nthe main credit facilities have a remaining maturity of at least
\n12 months. The maturity pro\ufb01le of the credit facilities per 31
\nDecember 2022 for Elkem is shown in the table below.
\nYear / maturity
\nAmounts in NOK million
2023
2027
Total
\nTotal amount of credit facilities
1 100
5 257
6 356
\nThe table below analyses the group's \ufb01nancial liabilities and
\nassets into relevant maturity groupings based on the remaining
\nperiod at the date of the statement of \ufb01nancial position to the
\ncontractual maturity date. The amounts disclosed in the table
\nare the contractual undiscounted cash \ufb02ows, and the amounts
\nare including interest payments.
\n31 December 2022
\nAmounts in NOK million
2023
2024
2025
2026
2027
\n2028
\nand later
Total
\nCarrying
\namount
\nTrade receivables
\nDerivative assets
\nTotal assets
\n4 248
\n698
\n4 946
\n-
\n434
\n434
\n-
\n346
\n346
\n-
\n306
\n306
\n-
\n287
\n287
\n-
\n482
\n482
\n4 248
\n2 554
\n6 802
\n4 248
\n2 273
\n6 521
\nTrade payables
\nDerivative liabilities
\nLease liabilities
\nLoans from external parties, other
\nBank \ufb01nancing
\nBills payable
\nTotal liabilities
\nthan bank
\n5 335
\n109
\n103
\n103
\n140
\n1 742
\n7 532
\n-
\n8
\n101
\n1 009
\n73
\n-
\n1 191
\n-
\n-
\n79
\n1 299
\n102
\n-
\n1 480
\n-
\n-
\n65
\n979
\n125
\n-
\n1 169
\n-
\n-
\n55
\n518
\n5 395
\n-
\n5 968
\n-
\n-
\n291
\n105
\n827
\n-
\n1 223
\n5 335
\n117
\n695
\n4 014
\n6 661
\n1 742
\n18 564
\n5 335
\n109
\n578
\n3 706
\n6 276
\n1 742
\n17 747
\n31 December 2021
\nAmounts in NOK million
2022
2023
2024
2025
2026
\n2027
\nand later
Total
\nCarrying
\namount
\nTrade receivables
\nDerivative assets
\nTotal assets
\n4 297
\n269
\n4 567
\n-
\n62
\n62
\n-
\n37
\n37
\n-
\n54
\n54
\n-
\n18
\n18
\n-
\n154
\n154
\n4 297
\n594
\n4 891
\n4 297
\n588
\n4 885
\nTrade payables
\nDerivative liabilities
\nLease liabilities
\nLoans from external parties, other
\nBank \ufb01nancing
\nBills payable
\nTotal liabilities
\nthan bank
\n4 614
\n23
\n116
\n1 334
\n671
\n2 096
\n8 854
\n-
\n2
\n123
\n64
\n4 477
\n-
\n4 666
\n-
\n(1)
\n99
\n1 174
\n214
\n-
\n1 486
\n-
\n4
\n80
\n1 037
\n4
\n-
\n1 124
\n-
\n7
\n68
\n519
\n4
\n-
\n597
\n-
\n8
\n427
\n509
\n4
\n-
\n948
\n4 614
\n43
\n912
\n4 637
\n5 374
\n2 096
\n17 675
\n4 614
\n41
\n801
\n4 389
\n5 186
\n2 096
\n17 127
\n(d) Climate risk
\nClimate-related issues represent important risk factors to the
\nbusiness, as well as attractive business opportunities since
\nour products can be key enablers for lower greenhouse gas
\nemissions through amongst other things renewable energy,
\nenergy storage and electri\ufb01cation of transportation. Elkem's
\nboard of directors and management conduct regular reviews of
\nthe group's strategy, which includes processes for identifying,
\nassessing, and responding to climate-related risks and
\nopportunities. Climate-risk assessments are also integrated
\ninto our multi-disciplinary company-wide risk management
\nprocess and each year a mapping is performed to identify
\nthe top risks for each division and corporate function. The
\nindividual risks are then organised into categories and
\naggregated on group level. The process for identifying climate
\nrisks are part of the annual risk mapping. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f21705": {
"value": "(a) Market risk (i) Price risk
\nCommodity prices
\nElkem is exposed to \ufb02uctuations in market prices for \ufb01nished
\ngoods and raw materials. The market risk assessment is
\nbased on a holistic approach as prices for Elkem\u2019s products
\ntend to \ufb02uctuate with underlying macroeconomic conditions.
\nThe same dynamics tend to apply to prices for the main raw
\nmaterials, giving Elkem a certain degree of natural hedging.
\nFor the main upstream products and raw materials Elkem
\nseeks to reduce the risk exposure by entering sales and
\npurchase contracts for corresponding time periods and
\nvolumes. The goal is to partly o\ufb00set changes in sales prices
\nthrough changes in raw material costs.
\nA signi\ufb01cant part of Elkem's sales consist of specialised
\nproducts. These products have generally more stable pricing.
\nElkem\u2019s integrated value chain mitigates the supply chain and
\npricing risks and also give \ufb02exibility to realise value at various
\nlevels through the value chain. Elkem aims to ensure sales
\nvolumes and raw material supply by entering into long-term
\ncustomer relationships.
\nPower
\nElectric power is a key input factor and Elkem enters into long-
\nterm power contracts to reduce the future exposure to changes
\nin power prices, particularly in Norway where electricity prices
\nbased on hydro power tend to have di\ufb00erent pricing dynamics
\nthan for Elkem\u2019s products and other raw materials.
\nNormally all plants have covered their main future need
\nfor power by entering into power contracts, primarily
\nclassi\ufb01ed as own use contracts according to IFRS 9, hence
\nsuch contracts are o\ufb00-balance. In addition to the own use
\ncontracts certain \ufb01nancial power contracts are classi\ufb01ed as
\nderivatives and designated in a cash \ufb02ow hedging relationship
\nin accordance with IFRS (see notes 25 and 26). For plants
\nlocated in Norway, Elkem\u2019s policy is that minimum 80% of the
\nexpected power consumption shall be covered by \ufb01xed price
\ncontracts for current and next year. This includes both own
\nuse and derivative contracts at fair value. For the following
\nperiods, the ratio extends until 4 years ahead, declining with
\n10%-point per year ending at 50%. Elkem currently ful\ufb01ls this
\nminimum hedge policy, and also has a substantial amount
\nof contracts at \ufb01xed price for the later years. Optimisation
\nof 24-hour-, seasonal- and capacity utilisation variations are
\nsolved through utilising \ufb01nancial and physical contracts that
\nare traded bilaterally. The purpose of entering into long term
\npower contracts is to reduce volatility in the power cost and
\nto increase the predictability of the cost base. Fair value of
\ncommodity contracts is especially sensitive for future changes
\nin energy prices.
\nChanges in fair value of commodity contracts, classi\ufb01ed as
\n\ufb01nancial instruments, re\ufb02ect unrealised gains or losses, and
\nare calculated as the di\ufb00erence between market price and
\ncontract price, discounted to present value. Valuations are
\nbased on market information where this is available, if not,
\nvaluations are based on estimated market price for non-
\nobservable parameters.
\nValuation of the power contracts
\nThe assumptions for the fair value measurement of power
\ncontracts are described in note 25 Financial assets and liabilities.
\nSensitivity analysis - power contracts
\nSensitivity on the \"30-\u00f8ringen\" contract is as follows.
\"30-\u00f8ringen\" contract
\n31.12.2022
31.12.2021
\nAmounts in NOK million
Fair value
Adjusted NPV
Fair value
Adjusted NPV
\nDiscount rate (used 4.9% (3.5%))
change with -3.5 %-point
2 037
2 239
330
360
\nDiscount rate (used 4.9% (3.5%))
change with +3.5 %-point
2 037
1 869
330
319
\nCPI (used 2.0%)
change to 1%
2 037
2 084
330
379
\nCPI (used 2.0%)
change to 3%
2 037
1 988
330
279
\nPower price
decrease -10%
2 037
1 721
330
166
\nPower price
increase + 10%
2 037
2 353
330
494
\n(ii) Currency risk
\nElkem has revenues and operating costs in various currencies.
\nThe prices of \ufb01nished goods are to a large extent determined
\nin international markets, primarily denominated in US dollar,
\nChinese yuan and Euro. This is partly o\ufb00set by purchases of
\nraw materials denominated in the same currencies. Elkem
\naims to establish natural hedging positions if this is possible
\nand economically viable. Financial derivatives are then used
\nto hedge the remaining net currency risk exposures. Elkem
\nhas net positive operating cash \ufb02ows in mainly Euro, US
\ndollar, Chinese yuan and Brazilian real. Due to the location
\nof its plants, Elkem has net cost positions in certain other
\ncurrencies, mainly Norwegian krone, but also Canadian
\ndollar and Icelandic krona.
\nElkem's policy is to hedge the net positive cash \ufb02ows in
\nforeign currencies against NOK to even out \ufb02uctuations in
\nresult and cash \ufb02ow. The target is to hedge expected net
\ncash \ufb02ow for 0\u20133 months on a 90% hedging ratio. Expected
\nnet cash \ufb02ow for 4\u201312 months should be hedged on a rolling
\nbasis targeting a 45% hedging ratio. The hedging ratio for
\n4\u201312 months may vary subject to internal approval. Chinese
\nyuan (CNY) is not included in the hedging programme. Elkem
\nhas hedged Japanese yen until 2026, related to a long-term
\ncustomer contract. Elkem uses hedge accounting for all cash
\n\ufb02ow hedges over 3 months. Embedded EUR derivatives in
\npower contracts are included in the foreign exchange hedging
\nprogramme. To ensure an e\ufb00ective hedge, according to the
\nhedge accounting principles, the spot element of the forward
\ncurrency contracts is designated as hedging instruments and
\nhighly probable future revenue as hedging object in a hedging
\nrelationship, covering the exposure beyond 3 months.
\nElkem realised a loss of NOK 49 million from hedging
\nprogramme (gain of NOK 92 million).
\nElkem aims to mitigate the currency risk in the statement of
\n\ufb01nancial position by keeping interest-bearing debt in the same
\ncurrencies as the group\u2019s assets. Elkem has mainly interest-
\nbearing debt in Euro, Chinese yuan and Norwegian krone.
\nCurrency e\ufb00ects recognised in total comprehensive income
\nfor the year, excluding e\ufb00ects from cash \ufb02ow hedging
\nAmounts in NOK million
2022
2021
\nNet foreign exchange gains (losses) - forward currency contracts - recognised in other items
9
14
\nOperating foreign exchange gains (losses) - recognised in other items
387
20
\nNet foreign currency exchange gains (losses) on \ufb01nancing activities - recognised in foreign exchange gains (losses)
85
241
\nCurrency translation di\ufb00erences - recognised in other comprehensive income
765
358
\nHedging of net investment in foreign operations - recognised in other comprehensive income
(142)
130
\nTotal
1 104
764
\nCurrency exposure
\nThe amounts in the tables below are translated to NOK using
\nexchange-rates against NOK per 31 December.
\nExchange rates against NOK per 31 December
\n2022
2021
\nUSD
9.8714
8.8242
\nEUR
10.5130
9.9978
\nCNY
1.4309
1.3891
\nCAD
7.2879
6.9449
\nCurrency exposure a\ufb00ecting statement of pro\ufb01t or loss
\nThe tables show carrying amount of assets and liabilities
\ndenominated in foreign currencies di\ufb00erent from the entities
\nfunctional currency, where changes in currency rates will a\ufb00ect
\npro\ufb01t and loss. The tables include notional amount of currency
\nexchange contracts (note 25 Financial assets and liabilities).
\nAmounts are presented in NOK based on currency rates as at
\n31 December.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
662
98
-
-
-
-
759
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 658
3 124
489
(265)
0
459
5 466
\nTotal monetary assets
2 320
3 222
489
(265)
0
459
6 225
\nInterest-bearing liabilities
-
6 505
-
-
-
-
6 505
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
592
232
-
-
-
37
862
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
592
6 738
-
-
-
37
7 367
\nDerivatives, notional value
780
6 033
-
-
-
468
7 281
\nNet currency exposure \ufb01nancial position
948
(9 549)
489
(265)
0
(46)
(8 423)
31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
-
-
-
-
-
-
-
\nTrade receivables
927
457
-
-
0
98
1 483
\nOther assets
-
-
-
-
-
-
-
\nRestricted deposits
-
-
-
-
-
-
-
\nCash and cash equivalents
1 172
25
80
(95)
0
387
1 570
\nTotal monetary assets
2 100
482
80
(95)
0
485
3 052
\nInterest-bearing liabilities
-
6 773
-
-
-
-
6 773
\nOther liabilities
-
-
-
-
-
-
-
\nTrade payables
442
117
3
0
2
56
620
\nBills payable
-
-
-
-
-
-
-
\nTotal monetary liabilities
442
6 890
3
0
2
56
7 393
\nDerivatives, notional value
399
5 598
-
-
-
631
6 629
\nNet currency exposure \ufb01nancial position
1 258
(12 006)
77
(95)
(1)
(202)
(10 969)
\nSensitivity on pro\ufb01t and loss from
\n\ufb01nancial assets and liabilities
\nThe following tables demonstrate the sensitivity to a reasonable
\npossible change in EUR and USD exchange rates by 5%, with
\nall other variables held constant. The impact on Elkem\u2019s pro\ufb01t
\nbefore tax is due to changes in the fair value of monetary
\nassets and liabilities including foreign currency derivatives and
\nembedded derivatives not designated for hedging. The impact
\non Elkem\u2019s pre-tax equity is due to changes in the fair value of
\nforward exchange contracts designated as cash \ufb02ow hedges
\nand net investment hedges. The impact on pre-tax equity
\nwould be booked against OCI and recycled through pro\ufb01t
\nbefore tax, when the hedged items are realised. In addition the
\npro\ufb01t and loss will be a\ufb00ected by translation di\ufb00erences on
\nintra group balances, mainly in EUR, USD and CNY.
\nCurrency
31.12.2022
31.12.2021
\nAmounts in NOK million
\nChange in
\nFX rate
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nE\ufb00ect on pro\ufb01t
E\ufb00ect on
\nbefore tax
pre-tax equity
\nEUR
5 %
(46)
(431)
(194)
(410)
\nEUR
-5 %
46
431
194
410
\nUSD
5 %
79
(31)
70
(16)
\nUSD
-5 %
(79)
31
(70)
16
\nCurrency exposure a\ufb00ecting currency
\ntranslation di\ufb00erences / equity
\nThe table shows Elkem's total assets and liabilities
\ndenominated in the group's main currencies translated to NOK
\nat the currency rates at 31 December and gives an overview
\nof the group's total currency exposure that will a\ufb00ect currency
\ntranslation di\ufb00erences both in the consolidated statement of
\ncomprehensive income and / or pro\ufb01t and loss.
\n31 December 2022
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
64
399
113
40
67
34
716
\nTrade receivables
1 451
452
1 644
29
3
668
4 248
\nOther assets
64
215
236
32
938
213
1 698
\nRestricted deposits
7
0
400
-
-
1
408
\nCash and cash equivalents
2 017
3 363
2 083
(60)
998
854
9 255
\nTotal monetary assets
3 603
4 429
4 476
41
2 006
1 771
16 325
\nAsset non-monetary items
2 828
5 917
12 311
1 278
12 264
1 858
36 455
\nTotal assets
6 431
10 345
16 787
1 319
14 270
3 628
52 781
\nInterest-bearing liabilities
31
6 620
1 066
-
2 753
66
10 535
\nOther liabilities
25
193
334
36
605
351
1 545
\nTrade payables
778
1 277
2 341
96
630
212
5 335
\nBills payable
-
-
1 742
-
-
-
1 742
\nTotal monetary liabilities
834
8 090
5 485
132
3 988
628
19 158
\nLiabilities non-monetary items
169
694
310
391
3 080
204
4 849
\nTotal liabilities
1 004
8 785
5 794
524
7 069
832
24 007
\n31 December 2021
\nAmounts in NOK million
USD
EUR
CNY
CAD
NOK
Other
Total
\nOther non-current assets
47
285
43
-
72
31
478
\nTrade receivables
1 387
660
1 549
21
184
497
4 297
\nOther assets
20
185
262
12
939
134
1 551
\nRestricted deposits
2
-
604
-
3
-
609
\nCash and cash equivalents
1 438
219
1 448
221
3 066
647
7 040
\nTotal monetary assets
2 894
1 349
3 906
254
4 264
1 308
13 976
\nAsset non-monetary items
1 864
4 878
11 162
837
7 710
1 423
27 874
\nTotal assets
4 758
6 227
15 068
1 092
11 974
2 731
41 850
\nInterest-bearing liabilities
38
6 083
1 144
-
3 038
77
10 380
\nOther liabilities
39
225
469
25
664
235
1 657
\nTrade payables
567
1 049
1 705
95
1 011
186
4 614
\nBills payable
-
-
2 096
-
-
-
2 096
\nTotal monetary liabilities
644
7 357
5 414
121
4 714
498
18 747
\nLiabilities non-monetary items
\nTotal liabilities
\n139
\n782
\n709
\n8 065
\n606
\n6 020
\n188
\n308
\n1 403
\n6 117
\n184
\n683
\n3 228
\n21 976
\n(iii) Interest rate risk
\nElkem's interest rate risk arises from interest-bearing liabilities
\ngranted by external \ufb01nancial institutions. Elkem's liabilities are
\nmainly drawn in Euro, Chinese yuan and Norwegian krone.
\nElkem has a \ufb02oating interest rate policy and is hence exposed
\nto \ufb02uctuating interest rates. Prices and sales volumes for
\nElkem's core products tend to correlate with general economic
\nconditions. A \ufb02oating interest rate policy is therefore seen as
\nappropriate from a \ufb01nancial risk perspective. Interest rates
\nhave stayed low for a number of years due to a low-rate
\neconomic environment. During 2022 the interest rate has
\nincreased as many central banks have in\ufb02ation targets and
\nhave adjusted interest rates to control a higher rise in the price
\nlevel than targeted. With \ufb02oating interest rates the group will
\nnormally be in a position to bene\ufb01t from lower interest rates in
\nan economic downturn, but a \ufb02oating rate policy will also leave
\nthe group exposed to futhure interest rate hikes.
Elkem has the following interest-bearing assets and liabilities
\n31 December 2022
\nAmounts in NOK million
Floating
Fixed
Total
\nInterest-bearing liabilities
12 120
158
12 278
\nInterest-bearing assets
9 718
-
9 718
\nNet exposure
2 402
158
2 559
\nSensitivity
\nThe interest rate sensitivity is based on a parallel shift in the
\ninterest rates that Elkem is exposed to. If interest rates had
\nbeen 100 basis points higher for a full year, based on net debt
\nas at 31 December 2022, with all other variables held constant,
\nthe pro\ufb01t (loss) for the year would have been NOK 20 million
\n(NOK 38 million) lower. An overview of Elkem's debt portfolio is
\npresented in note 23 Interest-bearing assets and liabilities.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfMarketRiskExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22528": {
"value": "(b) Counterparty credit risk Credit risk is the risk of \ufb01nancial losses to the group if a
\ncustomer or counterparty fails to meet contractual obligations.
\nFor Elkem this arises mainly to trade receivable and \ufb01nancial
\ntrading counterparties.
\nTrade receivables are generally secured by credit insurance
\nfrom a reputable credit insurance company. For customers
\nwhere credit insurance cannot be obtained, other methods
\nare generally used to secure the sales proceeds, such as
\nprepayment, letter of credit, documentary credit or guarantees.
\nIn particular, when sales are made in countries with a high
\npolitical risk, or to remote customers, trade \ufb01nance products
\nare used to reduce the credit risk. Of Elkem's revenue outside
\nChina 85% - 95% is covered by credit insurance or other trade
\n\ufb01nance tools.
\nElkem realised credit losses of NOK 5 million (NOK 12 million)
\ntrade receivables. The maximum exposure to credit risk for
\ntrade receivables for the group is NOK 4,257 million per 31
\nDecember 2022 (NOK 4,306 million). Please also refer to note
\n21 Trade receivables.
\nEvaluation of \ufb01nancial counterparties is based on external credit
\nratings from Moody's and / or Standard and Poor's. The general
\npolicy is that \ufb01nancial counterparties should have a rating
\nequal to, or higher than, A- (or the equivalent) from the rating
\nagencies, but exceptions may be made on a case-by-case basis,
\nmainly for local banks in emerging markets. Elkem has not had
\nany losses in 2022 or 2021 related to \ufb01nancial counterparties.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCreditRiskExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22558": {
"value": "(c) Liquidity risk Liquidity risk is the risk that the group will encounter di\ufb03culty
\nin meeting the obligations associated with its \ufb01nancial
\nliabilities. Elkem is exposed to liquidity risk related to its
\noperations and \ufb01nancing.
\nElkem's cash \ufb02ow will \ufb02uctuate due to economic conditions
\nand \ufb01nancial performance. In order to assess its future
\noperational liquidity risk, short-term and long-term cash \ufb02ow
\nforecasts are provided. The short-term forecast is updated
\neach week, and the long-term cash \ufb02ow projection is updated
\neach quarter.
\nIn order to mitigate the operational liquidity risk, Elkem
\nhas cash and revolving credit facilities with banks. As at 31
\nDecember 2022 Elkem has unrestricted cash of NOK 9,255
\nmillion (NOK 7,040 million). In addition, revolving credit
\nfacilities amount to NOK 6,356 million (NOK 3,144 million), of
\nwhich NOK 6,342 million is undrawn (NOK 3,144 million).
\nThe external loan agreements contain two \ufb01nancial covenants.
\nThe ratio of EBITDA to consolidated Net interest payable,
\nas de\ufb01ned herein, for each measurement period, where the
\nperiod is calculated as the 12 months ending on the last day
\nof a \ufb01nancial quarter, must exceed 4. Additionally, the ratio of
\ntotal equity to total assets must be more than 30% at all times.
\nElkem complies with these covenants as of 31 December 2022
\nand also complied with the covenants as of 31 December 2021,
\nsee note 23 Interest-bearing assets and liabilities.
\nThe policy is to have cash and available credit facilities to cover
\nknown capital needs and generally not less than 10% of annual
\ntotal operating income. In addition, the policy is to ensure that
\nthe main credit facilities have a remaining maturity of at least
\n12 months. The maturity pro\ufb01le of the credit facilities per 31
\nDecember 2022 for Elkem is shown in the table below.
\nYear / maturity
\nAmounts in NOK million
2023
2027
Total
\nTotal amount of credit facilities
1 100
5 257
6 356
\nThe table below analyses the group's \ufb01nancial liabilities and
\nassets into relevant maturity groupings based on the remaining
\nperiod at the date of the statement of \ufb01nancial position to the
\ncontractual maturity date. The amounts disclosed in the table
\nare the contractual undiscounted cash \ufb02ows, and the amounts
\nare including interest payments.
\n31 December 2022
\nAmounts in NOK million
2023
2024
2025
2026
2027
\n2028
\nand later
Total
\nCarrying
\namount
\nTrade receivables
\nDerivative assets
\nTotal assets
\n4 248
\n698
\n4 946
\n-
\n434
\n434
\n-
\n346
\n346
\n-
\n306
\n306
\n-
\n287
\n287
\n-
\n482
\n482
\n4 248
\n2 554
\n6 802
\n4 248
\n2 273
\n6 521
\nTrade payables
\nDerivative liabilities
\nLease liabilities
\nLoans from external parties, other
\nBank \ufb01nancing
\nBills payable
\nTotal liabilities
\nthan bank
\n5 335
\n109
\n103
\n103
\n140
\n1 742
\n7 532
\n-
\n8
\n101
\n1 009
\n73
\n-
\n1 191
\n-
\n-
\n79
\n1 299
\n102
\n-
\n1 480
\n-
\n-
\n65
\n979
\n125
\n-
\n1 169
\n-
\n-
\n55
\n518
\n5 395
\n-
\n5 968
\n-
\n-
\n291
\n105
\n827
\n-
\n1 223
\n5 335
\n117
\n695
\n4 014
\n6 661
\n1 742
\n18 564
\n5 335
\n109
\n578
\n3 706
\n6 276
\n1 742
\n17 747
\n31 December 2021
\nAmounts in NOK million
2022
2023
2024
2025
2026
\n2027
\nand later
Total
\nCarrying
\namount
\nTrade receivables
\nDerivative assets
\nTotal assets
\n4 297
\n269
\n4 567
\n-
\n62
\n62
\n-
\n37
\n37
\n-
\n54
\n54
\n-
\n18
\n18
\n-
\n154
\n154
\n4 297
\n594
\n4 891
\n4 297
\n588
\n4 885
\nTrade payables
\nDerivative liabilities
\nLease liabilities
\nLoans from external parties, other
\nBank \ufb01nancing
\nBills payable
\nTotal liabilities
\nthan bank
\n4 614
\n23
\n116
\n1 334
\n671
\n2 096
\n8 854
\n-
\n2
\n123
\n64
\n4 477
\n-
\n4 666
\n-
\n(1)
\n99
\n1 174
\n214
\n-
\n1 486
\n-
\n4
\n80
\n1 037
\n4
\n-
\n1 124
\n-
\n7
\n68
\n519
\n4
\n-
\n597
\n-
\n8
\n427
\n509
\n4
\n-
\n948
\n4 614
\n43
\n912
\n4 637
\n5 374
\n2 096
\n17 675
\n4 614
\n41
\n801
\n4 389
\n5 186
\n2 096
\n17 127",
"dimensions": {
"concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22840": {
"value": "28. Capital managment Elkem focuses on having a balanced capital structure, which
\nseeks to re\ufb02ect the return requirements for the shareholders
\nand the need for a strong \ufb01nancial position to facilitate the
\ngroup\u2019s strategy for growth and specialisation. The target is
\nto have a leverage between 1.0x and 2.0x over a cycle. The
\nleverage ratio is de\ufb01ned as net interest-bearing assets, less
\nnon-current interest-bearing assets (see note 23 Interest-
\nbearing assets and liabilities), divided by EBITDA, as de\ufb01ned
\nin the APM section.
\nElkem is managing its \ufb01nancing and liquidity position to
\nreduce liquidity risk and to ensure that the company can meet
\nits \ufb01nancial obligations at all times. Elkem has centralised the
\nresponsibility for group \ufb01nancing and liquidity handling. The
\npolicy is to raise \ufb01nancing at parent company level however,
\ncountry speci\ufb01c exceptions may be made due to local
\nlegislation or currency restrictions. Loan maturities are subject
\nto liquidity and re\ufb01nancing risk and the company aims to have
\na long-term and smooth maturity pro\ufb01le on its loan portfolio.
\nCash pooling is used to secure availability and access
\nto cash across the group. Due to local legislation, not all
\nsubsidiaries are able to participate in international cash pooling
\narrangements. In these cases, repatriation of excess cash
\nis mainly executed through dividend payments and inter-
\ncompany deposits, while liquidity needs are covered through
\ncapital injections and inter-company loans. Liquidity forecasts
\nare prepared and updated on a regular basis. The short-
\nterm forecasts are updated weekly. Elkem's cash position
\nis reported on a daily basis and tracked against respective
\nforecasts. The policy is that available liquidity reserves, de\ufb01ned
\nas cash and cash equivalents and available long-term credit
\nfacilities, should exceed 10% of total operating income.
\nFinancial covenants are applicable in some of Elkem\u2019s loan
\nagreements. Financial covenants, if required, are standardised
\nacross all loan agreements. Financial covenants and other
\n\ufb01nancial policy targets are monitored monthly and included in
\nthe company\u2019s management reports.
\nElkem intends to pay dividends re\ufb02ecting the underlying
\nearnings and cash \ufb02ow. Elkem envisages a dividend pay-
\nout ratio of 30 - 50% based on pro\ufb01t for the year. When
\ndeciding the annual dividend level, Elkem's leverage, capital
\nexpenditure plans and \ufb01nancing requirements will be
\ntaken into consideration. Focus will also be on maintaining
\nappropriate strategic \ufb02exibility. For the year 2021 Elkem
\ndistributed NOK 3.00 per share in dividends and for the year
\n2022 the proposed dividend is NOK 6.00 per share.
\nAs at 31 December 2022, Elkem's equity was NOK 28,773
\nmillion, including minority interests of NOK 134 million. The
\nequity ratio was 55%.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22841": {
"value": "28. Capital managment Elkem focuses on having a balanced capital structure, which
\nseeks to re\ufb02ect the return requirements for the shareholders
\nand the need for a strong \ufb01nancial position to facilitate the
\ngroup\u2019s strategy for growth and specialisation. The target is
\nto have a leverage between 1.0x and 2.0x over a cycle. The
\nleverage ratio is de\ufb01ned as net interest-bearing assets, less
\nnon-current interest-bearing assets (see note 23 Interest-
\nbearing assets and liabilities), divided by EBITDA, as de\ufb01ned
\nin the APM section.
\nElkem is managing its \ufb01nancing and liquidity position to
\nreduce liquidity risk and to ensure that the company can meet
\nits \ufb01nancial obligations at all times. Elkem has centralised the
\nresponsibility for group \ufb01nancing and liquidity handling. The
\npolicy is to raise \ufb01nancing at parent company level however,
\ncountry speci\ufb01c exceptions may be made due to local
\nlegislation or currency restrictions. Loan maturities are subject
\nto liquidity and re\ufb01nancing risk and the company aims to have
\na long-term and smooth maturity pro\ufb01le on its loan portfolio.
\nCash pooling is used to secure availability and access
\nto cash across the group. Due to local legislation, not all
\nsubsidiaries are able to participate in international cash pooling
\narrangements. In these cases, repatriation of excess cash
\nis mainly executed through dividend payments and inter-
\ncompany deposits, while liquidity needs are covered through
\ncapital injections and inter-company loans. Liquidity forecasts
\nare prepared and updated on a regular basis. The short-
\nterm forecasts are updated weekly. Elkem's cash position
\nis reported on a daily basis and tracked against respective
\nforecasts. The policy is that available liquidity reserves, de\ufb01ned
\nas cash and cash equivalents and available long-term credit
\nfacilities, should exceed 10% of total operating income.
\nFinancial covenants are applicable in some of Elkem\u2019s loan
\nagreements. Financial covenants, if required, are standardised
\nacross all loan agreements. Financial covenants and other
\n\ufb01nancial policy targets are monitored monthly and included in
\nthe company\u2019s management reports.
\nElkem intends to pay dividends re\ufb02ecting the underlying
\nearnings and cash \ufb02ow. Elkem envisages a dividend pay-
\nout ratio of 30 - 50% based on pro\ufb01t for the year. When
\ndeciding the annual dividend level, Elkem's leverage, capital
\nexpenditure plans and \ufb01nancing requirements will be
\ntaken into consideration. Focus will also be on maintaining
\nappropriate strategic \ufb02exibility. For the year 2021 Elkem
\ndistributed NOK 3.00 per share in dividends and for the year
\n2022 the proposed dividend is NOK 6.00 per share.
\nAs at 31 December 2022, Elkem's equity was NOK 28,773
\nmillion, including minority interests of NOK 134 million. The
\nequity ratio was 55%.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfDividendsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22895": {
"value": "29. Number of shares The development in share capital and other paid-in equity is
\nset out in the consolidated statement of changes in equity.
\nThe largest shareholders are listed in note 21 to the \ufb01nancial
\nstatement of Elkem ASA.
\nNumber of shares
\n2022
2021
\nShares
Treasury
Total issued
Shares
Treasury
Total issued
\noutstanding
shares
shares
outstanding
shares
shares
\nOpening balance
633 037 606
6 403 772
639 441 378
581 310 344
-
581 310 344
\nCapital increase
-
-
-
58 131 034
-
58 131 034
\nIncrease in treasury shares
(5 000 000)
5 000 000
-
(6 403 772)
6 403 772
-
\nSale of treasury shares
6 439 379
(6 439 379)
-
\nClosing balance
634 476 985
4 964 393
639 441 378
633 037 606
6 403 772
639 441 378
\nThe share capital of Elkem ASA is NOK 3,197,206,890 divided
\non 639,441,378 shares of NOK 5 par value. Of this amount
\nElkem ASA held 4,964,393 treasury shares, 0.7% of total
\nissued shares. Elkem has in 2022 acquired 5,000,000 own
\nshares that will be used as settlement in Elkem's share option
\nscheme. Total transaction value was NOK 192 million. Elkem
\nhas in 2022 sold 6,439,379 shares in connection with Elkem's
\nshare option scheme. Total consideration was NOK 154 million.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to repurchase the
\ncompany\u2019s own shares within a total nominal value of up to NOK
\n319,720,689. The maximum amount that can be paid for each
\nshare is NOK 150 and the minimum is NOK 1. The authorisation
\nis valid until the annual general meeting in 2023, but not later
\nthan 30 June 2023. The authorisation can be used to acquire
\nshares as the board of directors deems appropriate, provided
\nhowever, that acquisition of shares shall not be by subscription.
\nIn the annual general meeting held on 27 April 2022, the
\nboard of directors was granted an authorisation to increase
\nthe company\u2019s share capital with an amount up to NOK
\n319,720,689 - corresponding to 10 per cent of the current
\nshare capital. The authorisation is valid until the annual
\ngeneral meeting in 2023, but not later than 30 June 2023. The
\nauthorisation can be used to cover share capital increases
\nagainst contribution in kind and in connection with mergers.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to increase the share
\ncapital by up to NOK 40,000,000 to be used in connection
\nwith the issuance of new shares under share incentive scheme.
\nThe authorisation is valid until the annual general meeting in
\n2023, but not later than 30 June 2023. The authorisation does
\nnot cover capital increases against contribution in kind or
\ncapital increases in connection with mergers.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22896": {
"value": "29. Number of shares The development in share capital and other paid-in equity is
\nset out in the consolidated statement of changes in equity.
\nThe largest shareholders are listed in note 21 to the \ufb01nancial
\nstatement of Elkem ASA.
\nNumber of shares
\n2022
2021
\nShares
Treasury
Total issued
Shares
Treasury
Total issued
\noutstanding
shares
shares
outstanding
shares
shares
\nOpening balance
633 037 606
6 403 772
639 441 378
581 310 344
-
581 310 344
\nCapital increase
-
-
-
58 131 034
-
58 131 034
\nIncrease in treasury shares
(5 000 000)
5 000 000
-
(6 403 772)
6 403 772
-
\nSale of treasury shares
6 439 379
(6 439 379)
-
\nClosing balance
634 476 985
4 964 393
639 441 378
633 037 606
6 403 772
639 441 378
\nThe share capital of Elkem ASA is NOK 3,197,206,890 divided
\non 639,441,378 shares of NOK 5 par value. Of this amount
\nElkem ASA held 4,964,393 treasury shares, 0.7% of total
\nissued shares. Elkem has in 2022 acquired 5,000,000 own
\nshares that will be used as settlement in Elkem's share option
\nscheme. Total transaction value was NOK 192 million. Elkem
\nhas in 2022 sold 6,439,379 shares in connection with Elkem's
\nshare option scheme. Total consideration was NOK 154 million.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to repurchase the
\ncompany\u2019s own shares within a total nominal value of up to NOK
\n319,720,689. The maximum amount that can be paid for each
\nshare is NOK 150 and the minimum is NOK 1. The authorisation
\nis valid until the annual general meeting in 2023, but not later
\nthan 30 June 2023. The authorisation can be used to acquire
\nshares as the board of directors deems appropriate, provided
\nhowever, that acquisition of shares shall not be by subscription.
\nIn the annual general meeting held on 27 April 2022, the
\nboard of directors was granted an authorisation to increase
\nthe company\u2019s share capital with an amount up to NOK
\n319,720,689 - corresponding to 10 per cent of the current
\nshare capital. The authorisation is valid until the annual
\ngeneral meeting in 2023, but not later than 30 June 2023. The
\nauthorisation can be used to cover share capital increases
\nagainst contribution in kind and in connection with mergers.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to increase the share
\ncapital by up to NOK 40,000,000 to be used in connection
\nwith the issuance of new shares under share incentive scheme.
\nThe authorisation is valid until the annual general meeting in
\n2023, but not later than 30 June 2023. The authorisation does
\nnot cover capital increases against contribution in kind or
\ncapital increases in connection with mergers.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22897": {
"value": "29. Number of shares The development in share capital and other paid-in equity is
\nset out in the consolidated statement of changes in equity.
\nThe largest shareholders are listed in note 21 to the \ufb01nancial
\nstatement of Elkem ASA.
\nNumber of shares
\n2022
2021
\nShares
Treasury
Total issued
Shares
Treasury
Total issued
\noutstanding
shares
shares
outstanding
shares
shares
\nOpening balance
633 037 606
6 403 772
639 441 378
581 310 344
-
581 310 344
\nCapital increase
-
-
-
58 131 034
-
58 131 034
\nIncrease in treasury shares
(5 000 000)
5 000 000
-
(6 403 772)
6 403 772
-
\nSale of treasury shares
6 439 379
(6 439 379)
-
\nClosing balance
634 476 985
4 964 393
639 441 378
633 037 606
6 403 772
639 441 378
\nThe share capital of Elkem ASA is NOK 3,197,206,890 divided
\non 639,441,378 shares of NOK 5 par value. Of this amount
\nElkem ASA held 4,964,393 treasury shares, 0.7% of total
\nissued shares. Elkem has in 2022 acquired 5,000,000 own
\nshares that will be used as settlement in Elkem's share option
\nscheme. Total transaction value was NOK 192 million. Elkem
\nhas in 2022 sold 6,439,379 shares in connection with Elkem's
\nshare option scheme. Total consideration was NOK 154 million.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to repurchase the
\ncompany\u2019s own shares within a total nominal value of up to NOK
\n319,720,689. The maximum amount that can be paid for each
\nshare is NOK 150 and the minimum is NOK 1. The authorisation
\nis valid until the annual general meeting in 2023, but not later
\nthan 30 June 2023. The authorisation can be used to acquire
\nshares as the board of directors deems appropriate, provided
\nhowever, that acquisition of shares shall not be by subscription.
\nIn the annual general meeting held on 27 April 2022, the
\nboard of directors was granted an authorisation to increase
\nthe company\u2019s share capital with an amount up to NOK
\n319,720,689 - corresponding to 10 per cent of the current
\nshare capital. The authorisation is valid until the annual
\ngeneral meeting in 2023, but not later than 30 June 2023. The
\nauthorisation can be used to cover share capital increases
\nagainst contribution in kind and in connection with mergers.
\nIn the annual general meeting held on 27 April 2022, the board
\nof directors was granted an authorisation to increase the share
\ncapital by up to NOK 40,000,000 to be used in connection
\nwith the issuance of new shares under share incentive scheme.
\nThe authorisation is valid until the annual general meeting in
\n2023, but not later than 30 June 2023. The authorisation does
\nnot cover capital increases against contribution in kind or
\ncapital increases in connection with mergers.",
"dimensions": {
"concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22989": {
"value": "30. Earnings per share2022
2021
\nWeighted average number of shares outstanding
633 563 574
618 160 299
\nE\ufb00ects of dilution
2 025 138
3 876 305
\nWeighted average number of shares outstanding - diluted
635 588 712
622 036 604
\nOwners of the parent's share of pro\ufb01t (loss) (NOK million)
9 561
4 628
\nEarnings per share (NOK)
15.09
7.49
\nDiluted earnings per share (NOK)
15.04
7.44
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f22992": {
"value": "Principle The calculation of basic earnings per share (EPS) has been
\nbased on pro\ufb01t attributable to ordinary shareholders and
\nweighted-average number of ordinary shares outstanding. The
\ncalculation of diluted EPS has been based pro\ufb01t attributable
\nto ordinary shareholders and weighted-average number of
\nordinary shares outstanding after adjustment for the e\ufb00ects of
\nall dilutive potential ordinary shares.",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23033": {
"value": "31. Supplemental information to the consolidated statement of cash \ufb02ows The following table gives an detailed overview of changes in
\nworking capital in the statement of cash \ufb02ow. Working capital
\nis de\ufb01ned as accounts receivable, inventory, other current
\nassets, accounts payable, current employee bene\ufb01t obligations
\nand other current liabilities. Accounts receivable are de\ufb01ned
\nas trade receivables less bills receivable. Other current assets
\nare de\ufb01ned as other current assets less current receivables
\nto related parties, current interest-bearing receivables, tax
\nreceivables, grants receivable, assets at fair value through
\npro\ufb01t or loss and accrued interest income. Accounts payable
\nare de\ufb01ned as trade payables less trade payables related to
\npurchase of non-current assets. Other current liabilities are
\nde\ufb01ned as provisions and other current liabilities less current
\nprovisions, contingent considerations, contract obligations and
\nliabilities to related parties.
\nChanges in working capital
\nAmounts in NOK million
2022
2021
\nChanges in accounts receivable
324
(1 374)
\nChanges in inventory
(2 258)
(2 358)
\nChanges in other current assets
99
(205)
\nChanges in accounts payable
134
1 213
\nChanges in other current liabilities including employee bene\ufb01t obligations
118
704
\nTotal
(1 583)
(2 020)
\nLiquidity e\ufb00ects of contingent considerations
\nAmounts in NOK million
2022
2021
\nSettlement of contingent consideration
160
83
\nDiscounting element on settlement of contingent consideration
12
3
\nFair value adjustment on settlement of contingent consideration
(0)
1
\nForeign exchange gains (losses) from date of control
4
(9)
\nTotal payment of contingent consideration related to acquisitions (IFRS 3)
176
78",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23093": {
"value": "32. Related partiesElkem ASA is owned 52.9% by Bluestar Elkem International
\nCo. Ltd S.A., Luxembourg, which is under control of Sinochem
\nHoldings Co., Ltd (Sinochem), a company registered and
\ndomiciled in China. All companies under control by Sinochem
\nare considered to be related parties, including among others
\nChina Blue Chemicals Ltd and Jiangxi Xinghuo space\ufb02ight
\nNew Material Co., Ltd.. On 1 February 2022 Elkem purchased
\nthe remaining shares in Salten Energigjenvinning AS and
\ntransactions from that date are eliminated.
\nElkem also consider equity accounted companies as related
\nparties. On 14 September 2022 Elkem lost control of Vianode
\nAS and transactions are from that date considered to be
\nrelated party transactions.
\nThe structure of Elkem group is disclosed in note 4
\nComposition of the group and note 5 Equity accounted
\ninvestments and joint operation.
Transactions with related parties
\n2022
\nSale of
Purchase
Sale of
Purchase of
Interest
Financial
\nAmounts in NOK million
goods
of goods
services
\n1)
\nservices
income
expenses
\nBluestar Elkem International Co. Ltd S.A.
-
-
-
-
-
-
\nJoint ventures and associates
-
(280)
15
(191)
0
-
\nRelated parties within Sinochem
336
(434)
14
(126)
-
-
\nOther related parties
-
(21)
-
(18)
-
-
\nTotal
336
(735)
30
(335)
0
-
\n1)
\nIncluding sub-lease
\nTransactions with related parties
\n2021
\nSale of
Purchase
Sale of
Purchase of
Interest
Financial
\nAmounts in NOK million
goods
of goods
services
\n1)
\nservices
income
expenses
\n1)
\nBluestar Elkem International Co. Ltd S.A.
-
-
-
-
-
-
\nJoint ventures and associates
-
(158)
32
(184)
0
-
\nRelated parties within Sinochem
581
(414)
41
(153)
-
-
\nOther related parties
0
(18)
-
(16)
-
-
\nTotal
581
(591)
73
(354)
0
-
\n1) Including sub-lese
\nBalances with related parties
\nNon-current
Current
\nAmounts in NOK million
31.12.2022
31.12.2021
31.12.2022
31.12.2021
\nReceivables from joint ventures and associates, interest-bearing
1
1
-
-
\nReceivables from related parties within Sinochem, interest free
-
-
7
1
\nLiabilities to related parties within Sinochem, interest free
-
-
(30)
(32)
\nTrade receivables, related parties within Sinochem
-
-
4
17
\nTrade receivables, joint ventures and associates
-
-
15
16
\nTrade payables, Bluestar Elkem Investment Co. Ltd. S.A
-
-
(5)
(5)
\nTrade payables, related parties within Sinochem
-
-
(79)
(56)
\nTrade payables, joint ventures and associates
-
-
(71)
(43)
\nPrepayments to related parties within Sinochem
-
-
15
18
\nPrepayments from joint ventures and associates
-
-
(17)
(10)
\nFinancial power contract with joint ventures and associates
-
22
-
35
\nNet balances with related parties
1
23
(161)
(60)
Outstanding balances at year-end are unsecured, and the
\ncurrent receivables and payables are interest-free, with an
\nexception of the non-current receivables. The interest rate
\nfor the non-current receivables to the joint ventures and
\nassociates are currently 3.0% (2.5%).
\nInformation about main transactions with related parties:
\nRelated parties within Sinochem
\n\u2192
Sale of silicone to China Bluestar International
\nChemical Ltd,
Jiangxi Xinghuo Space\ufb02ight New
\nMaterial Co., Ltd and other companies within Sinochem
\n\u2192
Purchase of raw materials from companies
\nwithin Sinochem
\nEquity accounted companies
\nVianode AS
\nThe group has entered into a investment agreement
\nand committed to cover its proportion of total estimated
\ncapital injections in Vianode AS. Elkem's proportion is
\nNOK 534.5 million, whereof NOK 267 million is paid as of
\n31 December 2022.
\nJiangxi Guoxing Intelligence Energy Co. Ltd
\nElkem has committed to cover its proportion of total estimated
\ncapital injections in Jinangxi Energy of CNY 48.7 million,
\nwhereof CNY 17.5 million is paid as of 31 December 2022.
\nIn addition Elkem has committed to sell the land, buildings and
\nequipment needed to establish the cogeneration facility and
\nwhen the facility is up and running committed to supply steam.
\nOther equity accounted companies
\n\u2192
Purchase of short and deep sea transport from North Sea
\nContainerline AS and EPB Chartering AS
\n\u2192
Purchase of warehousing for Combined Cargo
\nWarehousing BV
\n\u2192
Purchase of services related to shared infrastructure such
\nas laboratory analysis, IT and telephone, warehousing
\nand purchase of basic chemistry products such as gas,
\nnitrogen, compressed air from GIE Osiris
\nThere are no other contingent liabilities or commitments
\nrelated to the joint ventures and associates.
\nKey management personnel and board of directors
\nInformation on transactions with key management personnel,
\nsee note 9 Employee bene\ufb01ts and \"Report on salary and
\nother remuneration to leading personnel in Elkem ASA for the
\n\ufb01nancial year 2022\".
",
"dimensions": {
"concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23095": {
"value": "Related parties' relationships are de\ufb01ned to be entities outside
\nElkem group that are under control (either directly or indirectly),
\njoint control or signi\ufb01cant in\ufb02uence by the owners of Elkem.
",
"dimensions": {
"concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithRelatedPartiesExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23350": {
"value": "33. Pledge of assets and guarantees Pledges
\nThe main part of Elkem's interest-bearing liabilities are not
\npledged. Details of liabilities that have pledged assets or
\nguarantees related to them are stated below.
\nPledged liabilities
\nAmounts in NOK million
31.12.2022
31.12.2021
\nPledged liabilities
125
79
\nBook value pledged assets
\nAmounts in NOK million
31.12.2022
31.12.2021
\nBuilding
30
28
\nMachinery and plant
0
0
\nOther assets
106
57
\nElkem makes limited use of guarantees, see speci\ufb01cation below.
\nGuarantee commitments
\nAmounts in NOK million
31.12.2022
31.12.2021
\nGuarantee commitment KLIF (Climate and Pollution Agency)
40
40
\nGuarantee commitment tax cases Brazil
38
15",
"dimensions": {
"concept": "ifrs-full:DisclosureOfCommitmentsExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23389": {
"value": "34. Change in presentation Presentation of realised hedge ine\ufb00ectiveness is changed from
\nraw materials and energy for production to other items in the
\nstatement of pro\ufb01t or loss. The impact on comparable \ufb01gures
\nin the statement of pro\ufb01t or loss are shown in the tables below.
\nThe change in presentation will not a\ufb00ect accounting policies
\nfor operating segments, see note 6 Operating segments.
\nConsolidated statement of pro\ufb01t or loss
\n2022
2022
\nbefore
After
\nAmounts in NOK million
change
Impact
change
\nRaw materials and energy for production
(21 378)
(597)
(21 976)
\nOther items
1 554
597
2 151
\nOperating pro\ufb01t (loss)
12 414
-
12 414
\nConsolidated statement of pro\ufb01t or loss
\n2021
\nFinancial
Impact
2021
\nAmounts in NOK million
statement
of change
Restated
\nRaw materials and energy for production
(15 861)
(124)
(15 985)
\nOther items
(114)
124
10
\nOperating pro\ufb01t (loss)
5 785
-
5 785",
"dimensions": {
"concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f23441": {
"value": "35. Events after the reporting periodNo events have taken place after the reporting period that
\nwould have had a material impact on the \ufb01nancial statements
or any assessments carried out. ",
"dimensions": {
"concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
},
"f28375": {
"value": "Drammensveien 169, 0277 Oslo, Norway",
"dimensions": {
"concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity",
"language": "en",
"entity": "scheme:549300CVBE06T0SH6T76",
"period": "2022-01-01T00:00:00/2023-01-01T00:00:00"
}
}
}
}