SGL CARBON SE — Earnings Release 2006

Jul 26, 2006

Results for the First Half Year 2006

July 26, 2006

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

Group

	F i H l f t r s a
i i l l i € n m o n	2 0 0 6	2 0 0 5
S l a e s	6 8 9 5	2 8 5 1
E B I T D A	) 1 0 1 4 7	8 9 4
E B I T	1 ) 9 2 7	6 5 4
I b f t n c o m e e o r e a x e s	2 0 4	2 6 8
N f i b f i i i t t t t t e p r o e o r e m n o r y n e r e s s	1 0	9 1 4
E P S ( i € ) n	0 0 2	0 2 6

2

• Sales increase by 9%, currency-adjusted by 7%
• More than proportionate increase in EBITDA (17%) and EBIT (45%)
• Pre tax earnings before ECJ decision more than doubled
• Net profit and EPS affected by ECJ decision

1) Before effect from ECJ decision of € 23.5 million

Carbon and Graphite (CG)

First Half

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

• Sales increase H1/06 vs. H1/05: 9%, thereof
  • - volume: -7% - currency: 2% - price: 14%
• EBIT increased by 26% vs. H1/05 because of higher prices and further cost savings

• GE volumes: 99kt (H1/05: 110kt)

• GE prices + 22% in US Dollar, + 10% in Euro vs. H1/05

• Increase in factor costs vs. H1/05 at upper end of 10-15% range

Specialties (S)

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

• Sales increase H1/06 vs. H1/05: 15%, thereof - volume/price: 14% - currency: 1%
• Good demand situation especially from industrial applications as well as solar and nuclear industry
• EBIT more than doubled to € 17.2 million from € 8.3 million
• ROS with 11.8% again within targeted 10-15%

SGL Technologies (T)

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

Sales increase H1/06 vs. H1/05: 3%, thereof

• - volume/price: 0% - currency: 3%
• Higher demand for carbon fibers more than compensated for the project and development related shift of composites sales to H2/06
• EBIT affected by approx. € 1 million Chapter 11 receivables writedown for DANA Corp. as reported in Q1/06

Corporate Costs

	F i H l f t r s a
i i l l i € n m o n	2 0 0 6	2 0 0 5
C C t t o r p o r a e o s s	3 1 4 -	3 8 1 -
C C E J t o s s	2 3 5 -	–

• Almost unchanged despite increased expenses related to SOX and higher share-based payments
• Non recurring charges from ECJ decision of € 23.5 million

Consolidated Income Statement

	F i H l f t r s a
( 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 6	2 0 0 5
S l a e s r e e n e v u	5 6 8 9	2 8 5 1
G f i t r o s s p r o	1 8 1 2	1 5 5 2
S l l i d i i i d R & D t t e n g a m n s r a v e a n ,	0 2 0 1 -	0 0 6 1 -
C E B I T f f f E J d i i t e e c r o m e c s o n	2 3 5 -	– –
E B I T	5 5 7	5 4 6
N f i i t t e n a n c n g c o s s	2 2 5 -	2 8 7 -
C I f f f E J d i i t t t n e r e s e e c r o m e c s o n	2 8 1 -	– –
P f i b f t t r o e o r e a x	2 0 4	2 6 8
I t n c o m e a x e s	9 1 4 -	1 1 9 -
N f i f h i d t t t e p r o o r e p e r o	0 1	1 4 9
E i h a r n n g s p e r s a r e	0 0 2	0 2 6

Net Financing Costs

First Half

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

Consolidated Balance Sheet - Assets

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

Consolidated Balance Sheet - Liabilities

( i i l l i ) € n m o n	J 3 0 2 0 0 6 n e u ,	D 3 1 2 0 0 5 e c ,
E Q U I T Y A N D L I A B I L I T I E S
S h h l d ' i t a r e o e r s e q u y	4 0 2	3 2 2
T l i i l d i i i i t t t o a e q u y n c u n g m n o r e s	4 0 3	3 2 3
N l i b i l i i t t o n c 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	3 2 1	3 3 6
P i f i d h l b f i t t r o v s o n s o r p e n s o n s a n o e r e m p o y e e e n e s	1 6 0	1 5 9
D f d l i b i l i i t t e e r r e a x a e s	3 2	3 5
O h l i b i l i i t t e r a e s	1	1
O h i i t e r p r o v s o n s	1 5	1 3
	5 2 9	5 4 4
C l i b i l i i 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	0	6
T d b l r a e p a a e s y	8 9	8 9
O h l i b i l i i t t e r a e s	6 8	7 0
O h i i t e r p r o s o n s v	8 8	1 5 1
	2 4 5	3 6 1
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 7 7 ,	1 1 8 3 ,

Consolidated Cash Flow Statement*

( i i l l i ) € n m o n	H / 1 2 0 0 6	H / 1 2 0 0 5
E i b f t a r n n g s e o r e a x	2 0 4	2 6 8
A d d b k l i t t t t t a c o a n e r e s e x p e n s e n e ,	2 0 7	2 3 9
R l i f i i E G H t e c a s s c a o n u e x p e n s e s	3 6 3	-
L d i l f l d i t t t o s s o n s p o s a o p r o p e r p a n a n e q p m e n y u ,	1. 0 -	-
D i i d i i f f i d t t t t e p r e c a o n a n a m o r a o n o e a s s e s z x	2 5 5	3 4 8
A i i f f i i t t t m o r a o n o r e n a n c n g c o s s z	1. 7	1. 9
I i d t n c o m e a e s p a x	1 0 2 -	6 3 -
I i d t t n e r e s r e c e e v	2 9	3 0
I f i i l d b i d t t t n e r e s o n n a n c a e p a	1 5 7 -	1 7 6 -
C h i i i t a n g e s n p r o v s o n s n e ,	5 0 -	3 1 -
C h i k i i l t a n g e n w o r n g c a p a	3 2 9 -	4 5 6 -
C h i h i / l i b i l i i t t t t a n g e s n o e r o p e r a n g a s s e s a e s	0 0	1 2 5 -
C h f l f i b f i t t t t t a s o w r o m o p e r a o n s e o r e a n r u s p a y m e n s	4 2 7	5 3
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	2 7 9 -	1 7 4 -
F h f l ** r e e c a s o w	1 4 8	1 2 1 -

* Analog to the reporting in the 2005 annual report the quarterly cash flow statement follows the indirect method as defined under IAS 7

11 ** Defined as cash used in operating activities before antitrust payments plus cash used in investing activities

Capital Expenditures and Depreciation

(excl. expenditures and depreciation of intangible assets)

Outlook for Q3/2006 vs. Q3/2005

Group:

Further sales growth of at least 10% Further improvement in EBIT of at least 20%

CG:

Sales increase up to 20% EBIT growth of approximately 30-40%

S:

Sales and EBIT levels comparable to strong Q3/05

T:

Sales growth at more than 10% Positive EBIT despite lack of positive contribution from AUDI agreement as in Q3/05

Raised Outlook for FY 2006

Sales to increase by around 5%-10%

• EBIT before ECJ decision to increase by at least 30%
• Financial result before ECJ decision to improve substantially to around minus € 50 million
• EBT and net profit before ECJ decision more than double
• Reduction of net debt to below € 240 million despite € 17 million higher cash outflow for antitrust payments thanks to better than expected cash generation from operations

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. The statements on future developments are not intended as guarantees; rather, such developments and results are dependent on a number of factors, they contain various risks and uncertainties and are based on assumptions that may prove to be incorrect. These risks and uncertainties include, for example, unforeseeable changes in political, economic and business conditions, particularly in the area of electric steel 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, and ongoing cost optimization programs. SGL Carbon does not intend to update these forward-looking statements.