SGL CARBON SE

Earnings Release • May 12, 2021

Investor & Analyst Conference Call

Dr. Torsten Derr (CEO) and Thomas Dippold (CFO)

Wiesbaden I May 12, 2021

Agenda

• 1. Recent Developments
• 2. Q1/2021 Results
• 3. Outlook 2021
• 4. Summary
• 5. Backup

Recent Developments

Q1 2021: Business development as expected & outlook confirmed

IPCEI: 42.9 mEUR grant received Highlights Q1/2021

• Group sales 2% down at 241.5 mEUR (FX adjusted at prior year level) - raw material price increases compensated
• Restructuring program on track
• Expected positive effect of 9 mEUR from mutual contract termination in BU GS impacting sales and EBITDA pre
• EBITDA pre +13.8% above prior year
• Net financial debt at 271.5 mEUR (year end 2020 286.5 mEUR)
• Liquidity at 168.6 mEUR (year end 2020 141.8 mEUR)
• Outlook for FY2021 confirmed

Q1/2021 Results

SGL Carbon – Strong profitability improvement despite slight decline in sales

Q1 2021 Q1 2020

Key developments

Sales

• Slightly lower; FX-adjusted on prior year level
• − Lower sales in Graphite Solutions (late cyclical)
• − Lower sales in Process Technology as a result of less maintenance shutdowns in Chemical Industry

• − Strong growth in Composite Solutions

• EBITDA pre improved strongly

• − Support from restructuring and positive effect from contract termination
• − Further cost savings achieved in Q1
• − Partly offset by higher raw material and energy costs

BU Graphite Solutions (GS) – Semiconductor & China strong

EBITDA pre (in mEUR)

Key developments

Sales

• Slightly below prior year
• − Battery & Other Energy above prior year due to 9 mEUR expected positive effect from contract termination
• − Semiconductor & LED business remains strong

• − Industrial business still weak mainly due to late-cyclical nature of the business

• Improved despite already strong prior year

• − Expected effect from contract termination
• − LED & Semiconductors improved
• − Market recovery in Automotive & Transport

BU Process Technology (PT) – Dependent on Chemical Industry

Key developments

Sales

• Pandemic-related sales decline
• − Decrease of order intake in all major regions
• − Demand from chemical industry under pressure since mid 2020
• − Noticeable recovery of order intake in Q1 especially for synthesis plants

EBITDA pre

• Significant decline as a result of the sales development

BU Carbon Fibers (CF) – Strong profitability improvement

Key developments

Sales

• Margin before volume strategy
• Top line nearly unchanged
• − Positive development in Automotive
• − Wind Energy almost on prior year
• − Pass-through of higher raw materials in Textile Fibers

• − Slight decline in other market segments

• Improved significantly

• − Higher contribution from At-Equity consolidated companies
• − Full asset utilization at reduced cost

BU Composite Solutions (CS) – Strong sales increase driven by Automotive projects

Key developments

Sales

• Strong increase
• − Overall recovery of pandemic-burdened end customer industry Automotive

• − Start of production for new projects e.g. battery enclosures in Automotive

• Turnaround

• − Strong sales increase
• − Cost savings
• − Productivity improvements

Corporate – Weak development, as expected

Key developments

Sales

• Strong decline, as expected
• − Lower rental income due to sale of land and buildings

• − Lower services to divested businesses

• Strong decline, as expected

• − Higher consulting expenses (one-off)
• − Prior year Q1 impacted by service invoices
• − Savings in central innovation
• Further restructuring to come

Focus on bottom line & cash pays-off

Key figures (in mEUR)

Net result Free cash flow (FCF)* Net financial debt 6.1 -4.3 Q1 2021 Q1 2020 24.1 26.8 Q1 2021 Q1 2020 271.5 286.5 Q1 2021 Q4 2020

Key developments

Net result

• Strong improvement by 10 mEUR

Free cash flow/Net financial debt

• FCF declined slightly. Dividend from BSCCB last year in Q1, this year expected in Q2
• Net financial debt decreased by 5%
• − Positive FCF of 24.1 mEUR
• − Lower interests of 7.7 mEUR
• − Lower lease liability of 2.0 mEUR

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Net result turned positive

Group income statement (in mEUR) Key developments

	Q1/2021	Q1/2020
Sales	241.5	246.8
EBITDA pre	33.0	29.0
EBIT pre	19.2	13.4
Exceptionals	-2.2	-7.0
EBIT	17.0	6.4
Financial result	-6.4	-9.4
Results from continuing operations before income taxes	10.6	-3.0
Income tax expense and non controlling interests	-4.5	-1.3
Net result attributable to shareholders	6.1	-4.3

• Net sales minus 2%, FX-adjusted stable
• EBITDA pre plus 14%
• − cost savings & expected effect from mutual contract termination
• EBIT pre plus 43%
• Reported EBIT more than doubled reflecting lower one-off charges
• Net result turned positive and improved by more than 10 mEUR

Balance sheet ratios improved

Key figures and ratios (in mEUR)

	31.03.2021	31.12.2020
Equity ratio (in %)	20.4	17.5
Total liquidity	168.6	141.8
Net financial debt	271.5	286.5
Leverage ratio (net debt/EBITDA)	2.0	2.3
ROCE (in %) EBIT*	5.6	3.1

Key developments

• Equity ratio improved strongly
• − Positive net result
• − Higher interest rates for pensions
• − Positive FX impact
• Lower net financial debt
• − Positive FCF
• Leverage ratio improved to 2.0
• − Lower net debt
• − Higher EBITDA

Free cash flow declined slightly compared to prior year

Cash flow (in mEUR)

	Q1/2021	Q1/2020 1)
Cash flow from operating activities	30.4	29.6
Capex	-6.9	-7.9
Cash flow other investing activities	0.6	5.1
Cash flow from investing activities	-6.3	-2.8
Free cash flow (continuing operations)	24.1	26.8

Key drivers

• Operating cash flow improved
• − Higher EBITDA pre compensates working capital increase
• Capex below prior year
• Dividend payment from JV BSCCB of 5 mEUR in Q2 instead of Q1

Outlook 2021

Restructuring project is on track

Transformation targets until end of 2023

• Savings of > 100 mEUR More than 50% initiated

Status end of Q1/2021

100 FTE terminations initiated

SGL Carbon – Outlook for FY2021 confirmed

Sales (in mEUR)

Key drivers

• Restructuring project well on track
• Order entry improved in all Business Units
• Margin before volume strategy

Other guidance KPIs

• Balanced net result including non-recurring items EBITDA pre (in mEUR) ✓
• Positive FCF due to change of interest payment reporting of about 20 mEUR
• ROCE improved

Outlook on Business Unit level confirmed

Outlook 2021

• Sales
• slight increase • stable
• significant increase • stable EBITDA pre
• Growth & profitability drivers
• Graphite for Lithium-Ion Batteries
• Semiconductors & LED

• Maintenance shutdowns in chemical industry

• stable

• slight increase

• Wind energy

• Automotive

Graphite Solutions Process Technology Carbon Fibers Composite Solutions

• significant increase

• slightly positive

• Automotive (lightweight construction)

• Electromobility

Summary

SGL Carbon's transformation right on track – key takeaways

1. Increase of EBITDA pre compared to prior year

2. Transformation project on track

3. IPCEI: 42.9 mEUR EU-grant received for graphite anode material for Li-Ion Batteries

4. Improved liquidity (+20 mEUR vs. year end) and lower net financial debt (-15 mEUR vs. year end)

5. Guidance for FY2021 confirmed

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Financial calendar and IR contact details

Financial calendar Contact

May 21, 2021

• Annual General Meeting

August 12, 2021

• Report on the first half of 2021
• Conference call for analysts and investors

November 11, 2021

• Report on the first nine months 2021
• Conference call for analysts and investors

Investor Relations SGL Carbon SE Söhnleinstrasse 8 65201 Wiesbaden/Germany Phone: +49 611 6029-103 Fax: +49 611 6029-101 E-mail: Investor-Relations@sglcarbon.com

www.sglcarbon.com

Backup

SGL Carbon to report EBIT / EBITDA pre (exceptionals)

Definition of exceptionals (for 2021)

• Depreciation in accordance with IFRS:
• ‒ effects of impairment (IAS 36)
• ‒ purchase price allocations (IFRS 3)
• ‒ depreciation on assets held for sale in accordance with IFRS 5
• Restructuring expenses
• Proceeds from the sale of land and buildings
• Proceeds from insurance claims, provided they are not counterbalanced by any offsetting items during the reporting period
• Other material one-off effects, which are not reflecting the underlying business development

Business unit performance Q1 2021 vs. Q1 2020

Sales (in mEUR) EBITDA pre (in mEUR)

Sales

• PT: pandemic-related decline
• GS: driven by Semiconductor & China & contract termination; Industrial weak
• CF: growth in Automotive & Textile Fibers off-set by other businesses
• CS: new projects driving growth

EBITDA pre

• PT: decline, due to lower sales
• GS: significant increase from Semi's, China, savings, contract termination
• CF: improvement due to initiated efficiency measures in FY2020
• CS: turned positive

Corporate not shown

Important Note

This presentation contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to SGL Carbon's outlook and business development, including developments in SGL Carbon's Graphite Solutions (GS), Process Technology (PT), Carbon Fibers (CF) and Composite Solutions (CS) businesses, expected customer demand, expected industry trends and expected trends in the business environment, statements related to SGL Carbon's cost savings programs. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about SGL Carbons's businesses and future financial results, and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, changes in political, economic, legal and business conditions, particularly relating to SGL Carbon's main customer industries, competitive products and pricing, the ability to achieve sustained growth and profitability in SGL Carbon's Graphite Solutions (GS), Process Technology (PT), Carbon Fibers (CF) and Composite Solutions (CS) businesses, the impact of any manufacturing efficiencies and capacity constraints, widespread adoption of carbon fiber products and components in key end-markets of SGL Carbon, including the automotive and aerospace industries, the inability to execute additional cost savings or restructuring measures, availability of raw materials and critical manufacturing equipment, trade environment, changes in interest rates, exchange rates, tax rates, and regulation, available cash and liquidity, SGL Carbon's ability to refinance its indebtedness, development of the SGL Carbon pension obligations, share price fluctuation may have on SGL Carbon's financial condition and results of operations and other risks identified in SGL Carbon's financial reports. These forward-looking statements are made only as of the date of this document. SGL Carbon does not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.