SGL CARBON SE — Earnings Release 2005

Nov 9, 2005

Results for the Nine Months 2005

Frankfurt am Main, November 9, 2005

Prepared in accordance with International Financial Reporting Standards, IFRSs (unaudited)

Group

9	M	h t o n s

i € i l l i n m o n	2 0 0 5	2 0 0 4
S l a e s	7 7 8 1	6 8 8 0
E B I T D A	1 3 2 7	1 0 6 8
E B I T	8 6 4	6 0 4
f i ( ) f P l b t t r o o s s e o r e a x	4 1 0	1 5 0
N f i ( l ) b f i i i t t t t t e p r o o s s e o r e m n o r y n e r e s s	2 3 6	1 2 -
S / l 1 3 % E B I T i i h i l i h 4 3 % 9 M 0 4 t t t t z a e s p r s n g m o r e a n p r o p o r o n a e s u y w v ,
E B I T i M / d 9 0 4 t z n a s r e p o r e : ,		3 9 4
S / l i i i f E B I T l P P A t e m n a o n o o s s e s - l i i i f d i l l i i t t t e m n a o n o o o w a m o r z a o n -		1 2 6 + 4 7 +
g l i f i i i f i i i i N h A i t t t t r e c a s s c a o n n e r e s s o p e n s o n p r o s o n s n o r m e r c a : v -		3 7 +
/ E B I T 9 M 0 4 b l z c o m p a r a e ,		i i € 6 0 4 l l m o n

Carbon and Graphite (CG)

9 Months

i € i l l i n m o n	5 2 0 0	2 0 0 4
S l a e s	4 6 8 0	4 1 2 6
E B I T D A	1 2 1 4	9 3 7
E B I T	9 0 0	7 0 9
R l t e r n o n s a e s u	1 9 2 %	1 7 2 %

• z Sales increase 9M/05 vs. 9M/04: 13%, thereof
  • - volume: 7% - currency: - 2% - price: 8%
• z EBIT increase of 27% vs. 9M/04 because of higher prices, solid demand for graphite electrodes and further cost savings
• z GE volumes: 165kt (9M/04: 153kt)
• z GE prices: + 13% in US Dollar, + 5% in Euro vs. 9M/04
• z Increase in raw materials of approx. 10% vs. 2004

Specialties (S)

	9 M h t o n s
i € i l l i n m o n	2 0 0 5	2 0 0 4
S l a e s	1 8 8 1	1 6 1 7
E B I T D A	2 3 8	5 2 8
E B I T	1 3 9	1 4 4
R l t e u r n o n s a e s	7 4 %	8 2 %

• z Sales increase 9M/05 vs. 9M/04: 7%, thereof - volume/price: 7% - currency: 0%
• z EBIT 9M/05 with € 13.9 million still € 0.5 million below 9M/04 due to weak Q1/05; but EBIT Q3/05 with € 6.0 million 43% higher than in Q3/04
• zPT with strong increase in sales 9M/05 vs. 9M/04, EBIT in 9M/05 significantly above 9M/04
• z GS with moderate increase in revenue EBIT still below 9M/04 but strong improvement again in Q3/05

SGL Technologies (T)

9	M	t	h
	o	n	s

i € i l l i n m o n	5 2 0 0	2 0 0 4
S l a e s	1 2 0 2	9 9 7
E B I T D A	1 2 6	3 9
E B I T	3 1	6 0 -
R l t e r n o n s a e s u	2 6 %	6 1 % -

• zSales increase 9M/05 vs. 9M/04: 23%, thereof

  • - volume/price: 24% - currency: - 1%

• zMain revenue growth in Carbon Fibers and Composites due to ongoing strong demand from the Aerospace and Defense Industry and Brake Discs

• zEBIT includes low single digit million profit contribution from Audi cooperation agreement booked in Q3/05

Corporate Costs

	M h 9 t o n s
i € i l l i n m o n	5 2 0 0	2 0 0 4
C C t t o r p o r a e o s s	2 0 6 -	1 8 9 -

z Increase in 2005 due to introduction of Sarbanes-Oxley Act, first-time accounting of share based payments and higher bonus accruals compared to 2004

Consolidated Income Statement

	9 M h t o n s
( i € i l l i h ) t t n m o n e c e p p e r s a r e a m o n s x u ,	2 0 0 5	2 0 0 4
S l a e s r e e n e v u	8 1 7 7	6 8 8 0
f i G t r o s s p r o	2 2 9 8	1 9 9 4
S / l l i d i i i h d h i t t t e n g a m n s r a e r e s e a r c a n o e r n c o m e e p e n s e v x , ,	1 4 3 4 -	1 3 9 0 -
E B I T	8 6 4	6 0 4
N f i i t t e n a n c n g c o s s	5 4 4 -	5 4 4 -
P f i ( l ) b f t t r o o s s e o r e a x	4 1 0	1 5 0
I t n c o m e a x e s	1 4 7 -	5 7 -
f i ( ) i i i N l t t t t e p r o o s s c o n n u n g o p e r a o n s	2 3 6	5 7
N f i ( l ) d i i d i t t t t e p r o o s s s c o n n e o p e r a o n s u	–	8 7 -
f i ( ) f i i i N l b t t t t t e p r o o s s e o r e m n o r y n e r e s s	2 3 6	1 2 -
E i h a r n n g s p e r s a r e	0 4 2	0 0 2 -

Net Financing Costs

	9 M h t o n s
( i € i l l i h ) t t n m o n e x c e p p e r s a r e a m o u n s ,	5 2 0 0	2 0 0 4
( ) I t t t n e r e s e x p e n s e n e	2 1 9 -	2 2 2 -
I i t t n e r e s e x p e n s e o n p e n s o n s	1 0 1 -	1 0 0 -
( ) I i h t t t t t n e r e s e p e n s e o n a n r s n o n -c a s x u	5 0 -	5 3 -
i T l t t t t o a n e r e s e x p e n s e n e ,	3 7 0 -	3 5 7 -
C d h d i l i d j f i t t t t t t r r e n c a n e g n g a a o n a s m e n s o a n r s u y v u u u i i i i ( ) l b l h t a e s n o n -c a s	0 9 -	2 0 -
( ) A i i f f i i h t t t m o r a o n o r e n a n c n g c o s s n o n -c a s z	4 4 -	2 8 -
O h t e r	3 1 -	3 1 -
T l h f i i t t o a o e r n a n c n g e x p e n s e s	8 4 -	9 7 -
N f i i t t e n a n c n g c o s s	5 4 4 -	4 5 4 -

Consolidated Balance Sheet - Assets

( i € i l l i ) n m o n	S 5 3 0 2 0 0 e p ,	D 3 1 2 0 0 4 e c ,
N t t o n -c u r r e n a s s e s
I i b l t t n a n g e a s s e s	8 4	8 5
P l d i t t t r o p e r p a n a n e q p m e n y u ,	3 3 6	3 4 5
L i t t t o n g e r m n v e s m e n s -	3 1	3 0
f D d t t e e r r e a a s s e s x	1 3 7	1 3 0
	5 8 8	5 9 0
C t t u r r e n a s s e s
I i t n v e n o r e s	2 7 0	2 4 8
T d i b l r a e r e c e a e s v	2 0 4	1 8 4
O h t t t e r c u r r e n a s s e s	3 4	3 6
C h d h i l t a s a n c a s e q a e n s u v	6 0	6 5
R i d h f f i b l b d t t t t e s r c e c a s o r r e p a y m e n o c o n v e r e o n s	0	5 1
R i d h f i t t t t t e s r c e c a s o r a n r s u	0	7 7
	5 6 8	6 6 1
A h l d f l t s s e s e o r s a e	–	6 4
T l t t o a a s s e s	1 1 5 6 ,	1 3 1 5 ,
9

Consolidated Balance Sheet – Equity and Liabilities

( i € i l l i ) n m o n	S 5 3 0 2 0 0 e p ,	D 3 1 2 0 0 4 e c ,
i i i i i i E l d t t q u y n c u n g m n o r e s	3 2 6	2 8 2
N l i b i l i i t t o n -c r r e n a e s u
F i i l l i b i l i i t n a n c a a e s	3 3 5	3 5 3
f f P i i i d h l b i t t r o s o n s o r p e n s o n a n o e r e m p o e e e n e s v y	1 8 5	1 6 5
f D d l i b i l i i t t e e r r e a a e s x	4 4	4 5
O h l i b i l i i t t e r a e s	2	3 7
O h i i t e r p r o v s o n s	2 2	1 9
	5 6 1	6 1 0
C i i i i l b l t t u r r e n a e s
F i i l l i b i l i i t n a n c a a e s	8	6 3
T d b l r a e p a a e s y	7 5	9 1
O h l i b i l i i t t e r a e s	5 5	7 9
O h i i t e r p r o v s o n s	1 3 1	1 2 6
	2 6 9	3 5 9
i i i i f L b l h l d l t a e s e o r s a e	–	6 4
T l i d l i b i l i i t t t o a e q a n a e s u y	1 1 5 6 ,	1 3 1 5 ,
1 0

Consolidated Cash Flow Statements

	M h 9 t o n s
( ) i € i l l i n m o n	5 2 0 0	2 0 0 4
E B I T	8 6 4	6 0 4
D i i t e p r e c a o n	5 0 8	4 6 4
E B I T D A	1 3 2 7	1 0 6 8
( ) D i i k i i l t e c r e a s e n c r e a s e n w o r n g c a p a	4 4 4 -	3 1 2 -
O f i l h l t p e r a o n a c a s o w	9 2 8	6 7 5
O h i h ( ) t t e r o p e r a n g c a s s o r c e s s e s u u	- 5 5 3	3 9 6 -
C ( ) h i d d d b i t a s p r o v e u s e y o p e r a n g
i i i b f i t t t t t t a c v e s e o r e a n r u s p a y m e n s	5 3 7	3 6 0
C h d i i i i i i t t t a s s e n n e s n g a c e s u v v	1 6 7 -	2 8 3 -
F h f l * r e e c a s o w	2 0 8	7 7

*Cash provided by operating activities before antitrust payments minus cash used in investing activities

**Difference resulting mainly from interest, tax, and bonus payments – see detailed chart in shareholder letter

Capital Expenditures and Depreciation

(excl. expenditures and depreciation of intangible assets)

Outlook for Q4/05

z Group:

EBIT Q4/05 more than four times as high as EBIT Q4/04 (€ 5.2 million)

EBIT Q4/05 lower than EBIT Q3/05 due to non-recurring profit contribution from Audi cooperation agreement and traditional seasonal weaker December in GS business

Outlook for FY 2005

z Group: Sales expected to increase slightly more than 10%

More than proportionate EBIT growth of more than 60% and positive net income

Further reduction of net debt to below € 300 million expected due to positive free cash flow generation

z CG: Sales growth comparable to 9M/05 More than proportionate EBIT growth of up to 30% vs. 2004

z S: Sales growth of about 5% More than proportionate EBIT growth of slightly more than 10%

z T: EBIT break even for full year 2005 after loss of € 10 million in 2004

Forward-looking statements:

This presentation contains statements on future developments that are based on currently available information and that involve risks and uncertainties that could lead to actual results deviating from these forward-looking statements. These risks and uncertainties include, for example, unforeseeable changes in political, economic and business conditions, particularly in the area of electrosteel production, the competitive situation, interest rate and currency developments, technological developments and other risks and unanticipated circumstances. We see other risks in price developments, unexpected developments relating to acquired and consolidated companies, ongoing restructuring measures and unforeseeable occurrences in conjunction with the reviews to be performed by the European antitrust authorities. SGL Carbon does not intend to update these forward-looking statements.

Financial Highlights

I € i l l i i t t n m o n e x c e p r a o s ,	S 3 0 e p , 5 2 0 0	D 3 1 e c , 2 0 0 4
T l t t o a a s s e s	1 1 5 6 ,	5 1 3 1 ,
E i t q u y	3 2 6	2 8 2
N d b t t e e	3 0 0	3 2 1
( ) 1 ( ) D b i i t t e r a o g e a r n g	0 9	1 1
( ) 2 E i i t t q r a o u y	2 8 2 %	2 1 4 %

• (1) Net debt divided by shareholders' equity
• (2) Shareholders' equity divided by total assets

Group Adjustments

• z SP/PA business sold off in January 2005, therewith 9M/05 results only present continuing operations
• z Since January 1, 2005, we need to account for share based payments according to IFRS 2. This will have an effect on EBIT by individual business segments and Corporate Costs by roughly € 2 million per quarter 2005 (on the basis of actual calculation)
• zWe do not separately report on restructuring expenses any more since our restructuring measures have largely come to an end

Financial Adjustments

Balance Sheet:

• zAccording to IAS 1 positions were divided into non-current and current assets and liabilities; Current are periods less than 1 year, non-current is more than 1 year. Provisions for European antitrust proceedings are fully recognised in 'other current provisions'.
• P+L (those adjustments were already made in the FY 2004 accounting):
• zInterests for pension provisions were unified groupwide. This will have a positive effect on the EBIT of the businesses, but will have a negative impact in the financial result.
• zAccording to IFRS3, 'Business Combinations', goodwill of intangible assets is no longer subject to regular amortization. According to this standard, amortization of goodwill with indefinite useful life is not allowed any more.