SGL CARBON SE — Investor Presentation 2011

Jun 9, 2011

Deutsche Bank 15th Annual European Leveraged Finance Conference

Jürgen Muth, CFOLondon, June 9, 2011

SGL Group – The Carbon Company

• •SGL Group is one of the world's largest manufacturers of carbon-based products
• • Comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites
• •45 production sites worldwide
• • SGL Group supplies a broad range of industries needing solutions for:
• high temperature and/or critical chemical processes
• light-weight issues
• –energy efficiency requirements
• •Our claim is:

Broad Base. Best Solutions.

Fundamental long-term growth drivers

Fundamental long-term growth drivers for our businesses

Strong growth in emerging countries(BRIC etc.)

•Industrialization

•Infrastructure build up

Increasing demand forgraphite electrodes and cathodes

Fundamental long-term growth drivers for our businesses

Introduction to SGL Group's Businesses

SGL GroupBusiness structure

B M i l t a s e a e r a s	A d d M i l t v a n c e a e r a s
P f P d t e r o r m a n c e r o u c s ( ) P P	G h i M i l & t t r a p e a e r a s S ( S ) G M t y s e m s	C b F i b & a r o n e r s C ( C C ) i F t o m p o s e s
G C h i & b t r a p e a r o n ( G C ) E l d E t e c r o e s C h d & F t a o e s u r n a c e ( C ) L i i F L n n g s	G S ( G S ) h i i l i t t r a p e p e c a e s • P T h l ( P T ) • r o c e s s e c n o o g y N M k ( N M ) t e a r e s • w	C b F i b & a r o n e r s • C i M i l t t o m p o s e a e r a s C C ( F & M ) ( / S ) A A t t • e r o s r u c u r e s R B l d ( R B ) t o o r a e s •
( ) T h l d I i T & I t e c n o o g y a n n n o v a o n

Base MaterialsPerformance Products (PP)

B i i t s n e s s n s u u	G l 2 0 1 0 r o p s a e s u	P P l & E B I T i s a e s m a r g n s
G C h i & b t r a p e a r o n • E l d t e c r o e s C h d & F t a o e s r n a c e • u L i i n n g s	C F C 1 6 % P P 5 5 % G M S 2 9 %	3 1 % 2 9 % 2 4 % 2 4 % 1 9 % 1 9 % 1 5 % 9 6 6 8 3 6 7 6 3 1 3 7 6 4 4 6 4 2 5 6 3 2 0 0 4 2 0 0 2 0 0 6 2 0 0 2 0 0 8 2 0 0 9 2 0 1 0 5 7 S l € E B I T i a e s m m a r g n
i i K d d t e n s r e s s e r e y u v	C i i h t t a r a c e r s c s
S l t • e e	S l i h l i d i t t t • u p p y n g e m e a n u s r e s	O S O C H i h R & R E g •
A l i u m n u m •	L d i i i i i t t t e a n g c o m p e v e p o s o n •	S f h l t r o n g c a s o • w
f F d e r r o s a n n o n- e r r o s • u u l t m e a s	O C i h i B R I t n g o n g g r o n • w	S b l h t t a e g r o • w

Performance Products Graphite electrodes

Source: steeluniversity.org

Performance ProductsGraphite electrode production process

• GE critical to EAF furnace efficiency but only ~ 3%of steelmaking conversion cost
• •GE is a consumable – replaced every 5 to 8h
• •GE usually sold mostly in annual contracts
• • Needle coke requirements sourced on basisof multiyear contracts
• Production process takes up to 3 months

Base Materials

Performance Products (PP)

Advanced Materials

Graphite Materials &

Carbon Fibers &

Investor Relations PresentationPage 10

•

Performance ProductsGraphite electrodes (GE) for steel production in EAFs

Base Materials Advanced Materials Performance Products (PP)Graphite Materials & Carbon Fibers &

• • Growth in steel production fuelled by infrastructure demand from emerging countries
• • Scrap availability limits EAF growth in emerging countries
• • Due to continued efficiency gains GE demand growth only1 – 2% p.a.
• • GE critical to EAF furnace efficiency but only ~3% of steelmaking conversion cost

An EAF (electric arc furnace) is a furnace that heats charged scrap steel material (also known as mini mills)BOF (blast oxygen furnace) is the steelmaking route that uses iron ore and coking coal to produce primary steel (also known as integrated steel)

Performance ProductsCathodes for the aluminum industry

Performance ProductsCathodes for the aluminum industry

• • Aluminum demand driven by:
• Population growth and urbanization
• Further industrialization of BRICs
• Weight / strength / cost advantages in higher energy cost environment
• • Cathodes essential to aluminum smelters
• Existing smelters relining
• Investment good (5 7 years lifetime)
• New smelter construction leading first to project demand and long-term to higher relining demand
• • Existing smelters upgrading
• Amorphous graphitized cathodes
• Only three to four major established producers of graphitized cathodes
• • Cathodes essential for aluminum smelting but representing only 2% of production costs for 1 mt aluminum

Aluminum global production scenarios2003 – 2020 / Above pre-crisis scenarios

Fundamentals for Aluminum production growth are solid. Various new Project under construction and additional feasibility studies for capacity increase underway.

Base MaterialsPerformance Products (PP)

S l 2 0 1 a e s –	0	H i h l i h 2 0 1 0 t g g s
C ho d & t a e s Fu L in ing rn a c e s 1 4 %	G h i & t ra p e C b E le d t a r o n c ro e s 8 6 %	P d i i d i d d t t t • r o u c o n n c r e a s e o m e e r e c o v e r n g e m a n I i 6 0 k M l i h i l t t t t t t n e s m e n n o a a s a n g r a p e p a n • v y ( l d & h d ) i h d l t t t e e c r o e s c a o e s c o n n u e s o n s c e u e L d l k d d d t o n g e r m n e e e c o e e m a n s e c r e • u -
M d i t t e u m e r m a -	t r g e s	S i i i i t t t r a e g c p r o r e s
V l h t o u m e g r o w • :	2 3 % p. a –	C i d d i j t t t t o n n u e c o s r e u c o n p r o e c s •
O S R ( f d 2 0 1 2 ) r o m e n • :	2 0 % >	M j i i i i i l t t t t a o r n a e o n c r e a s e c s o m e r a e • v u v u h h d l i d i t t t t r o g p r o c q a a n c o n s s e n c u u u y y

Advanced MaterialsGraphite Materials & Systems (GMS)

Graphite Materials & SystemsBest solutions for our customers

Page 17

Graphite Materials & SystemsInnovation driving new product portfolio

• • Heaters, molds and insulation for photovoltaic applications
• • Silicon Carbide coated platters for LED
• • Carbon for anode material for lithium-ion batteries
• • High purity expanded graphite for environmental needs and thermal management(electronics, climate), e.g. cooling ceilings (Deutsche Bank Green Towers)
• • Process solutions for destruction of HCFCs(Hydrochlorofluorocarbons)

1/3 of sales based on new products introduced over the last 4 years

Graphite Materials & SystemsMajor customer industries and market shares 2010

	f % l t t o o a S G M l 2 0 1 0 s a e s	G l b l k t o a m a r e h 2 0 1 0 s a r e
C h i l e m c a s	2 9 %	3 0 %
S E l n e r g o a r y :	1 6 %	2 5 %
E B i & N l t t n e r g y a e r e s u c e a r :	1 3 %	2 % 5
S i d ( i l. L E D ) t e m c o n c o r n c u	9 %	2 0 %
M l l t e a u r g y	6 %	2 0 %
T l f i t o o m a n a c r n g u u	5 %	1 5 %
A i t t u o m o v e	4 %	1 % 5
H i h t t g e m p e r a r e p r o c e s s e s u -	3 %	1 5 %

Source: SGL Group's own estimates

Advanced MaterialsGraphite Materials & Systems (GMS)

S l 2 0 1 0 a e s –		i i H h l h 2 0 1 0 t g g s
P r o c e s s T h l e c n o o g y 2 4 %	G h i t r a p e S / i l i t p e c a e s N e w M k t a r e s 7 6 %	G M S l i A i l 3 0 % t • s a e s n o s a n e a r y C i i t t t • a p a c y e x p a n s o n o n s r e a m o a c c o m p a n y i i d d f i d i h t n c r e a s n g e m a n o n s r e s s c a s u u ( ) h l i L E D i i h i t t t t t t p o o o a c, e c. s o s a c g r a p e v , P T h l b i i i d h i h t t r o c e s s e c n o o g s n e s s m a n a n e a g • y u l d i l l s a e s a n e a r n n g s e v e
M d i t t e m e r m a r g u -	t e s	S i i i i t t t r a e g c p r o r e s
S l h t • a e s g r o w :	1 0 % p. a. >	C h k i i i f i t t t t t • a c m a r e o p p o r u n e s n a s g r o w n g k i h i l i t t t t t m a r e s m e n e s m e n s w y v
O S R • :	1 0 % >	M i i l d i i i i l l d t t t • a n a n e a n g p o s o n n a c o r e p r o u c h l i t e c n o o g e s
		F h i b i i i i A i b t t • u r e r m p r o v e u s n e s s p o s o n n s a y h i l l i d k i l l t t t t s r e n g e n n g o c a n e s m e n s a n s s v

Advanced MaterialsCarbon Fibers and Composites (CFC)

Carbon Fibers & CompositesBest solutions for our customers

Carbon Fibers & CompositesUnique offering of the complete value chain

Advanced MaterialsCarbon Fibers and Composites (CFC)

S l 2 0 1 0 a e s –	H i h l i h 2 0 1 0 t g g s
C b F i b / a r o n e r s A t t e r o s r u c u r e s C i t o m p o s e 3 7 % M i l t a e r a s 5 0 % R B l d t o o r a e s 1 3 %	C b F i b & C i M i l ( C F & C M ) t t • a r o n e r s o m p o s e a e r a s : S b i l l i d l d i i l i i t t t t t u s a n a y m p r o v e v o u m e s a n c a p a c y u z a o n – f / P l i d M i b i h i & L i J V t r e c r s o r s p p r e n o r c e s s e n n g s u u y w u z – J V / B M W f i i l i t t t s w o r a u o m o v e m a e r a s p r o g r e s s n g o n – h d l s c e u e A ( A S ) t t • e r o s r u c u r e s P f i b l d i d l i t t t t t r o a e u e o m p r o v e v o u m e s ; n e w n v e s m e n s o – f h h i & d f b i t t t s u p p o r u r e r g r o w n a e r o s p a c e e e n s e u s n e s s ( C C ) R B l d t o o r a e s • : W i d i d j d l d h d l d d i t t t n n u s r y p r o e c e a y s a n s c e u e p r o u c o n – h l d i l l t c a n g e s e a n g o o w e r s a e s
i M d t t t e u m e r m a r g e s -	S i i i i t t t r a e g c p r o r e s
S l h 2 0 % t a e s g r o w p. a. • : > O S R ( b d f 2 0 1 3 ) 1 0 % e n o • y : >	f f f B l i h i k t e c o m e s p p e r o c o c e o r o r o c s m a r e s • u u u A i t t u o m o v e – A l i i t t e r n a e e n e r g e s v – A i i / d f h l t t v a o n e e n s e e c n o o g y – I d i l t n u s r a – C C E d b F i b d i i i t t p a n a r o n e r a n o m p o s e c a p a c e s • x S i h i h d h i d t t t t t t • u p p o r o r g a n c g r o w w a r g e e p a r n e r s p s a n i i i t a c q u s o n s S f d i l l t • a e g u a r o w n r a w m a e r a s u p p y

Ensuring the futureSGL Excellence – enables productivity and growth

SGL Excellence

• Started in 2002
• The core element of the Company mission
• An ongoing and Company wide program
• Our philosophy of doing business

SIX SIGMA

• Our core methodology
• Focuses on:
• Customer value
• Measurable objectives and results
• Applies to every function in our Company
• Empowers our employees with skills and tools:
• > 3,000 SIX SIGMA trained employees
• > 600 Green Belts
• > 100 Black Belts

Ensuring the futureSGL Excellence savings

Since 2002 continuous cost reduction of €233 million in total

*Excluding Brakes business

Latest Financials and 2011 Outlook

SGL GroupQ1/2011 Results for the Group

i i i € l l n m o n	Q / 1 2 0 1 1	Q / 1 2 0 1 0
S l a e s	3 6 3 8	3 0 3 6
E B I T D A	3 5 5	4 0. 3
P f i f i ( E B I T ) t t r o r o m o p e r a o n s	3 6. 3	2 6. 0
R l ( i ) % t e u r n o n s a e s n	1 0. 0	8 6
f f R l i d A E i t t t t t- t e s u r o m n v e s m e n s a c c o u n e o r q u y	3 6 -	2 2 -
f N i i l t t e n a n c n g r e s u	1 0. 9 -	9. 1 -
P f i b f t t r o e o r e a x	2 1. 8	1 4 7
N f i f l l i i t t t t t t e p r o a e r n o n- c o n r o n g n e r e s s	1 4 9	9 3
E P S b i [ i € ] a s c n ,	0 2 3	0 1 4

•EBIT includes sustainable cost savings of €5 million from SGL Excellence Initiative (SGL X)

Financing Structure, Balance Sheet Ratios and Cash on HandAllow continuation of growth path

SGL Group established a solid long term financial structure in May 2007

• •€200 million Corporate Bond at EURIBOR plus 125 bps (maturity 2015)
• •€200 million Convertible Bond at 0.75%, conversion price of €36.52 (maturity 2013)
• •€200 million credit facility, undrawn (original 2012 maturity extended to 2015)

Followed by a supplemental debt instrument in June 2009

•€190 million Convertible Bond at 3.5%, conversion price of €29.39 (maturity 2016)

SGL Group has solid balance sheet ratios, cash on hand at end of March 2011

• •Equity ratio: 41%
• •Gearing: 0.49
• •Total liquidity: €265 million

SGL Group has no refinancing requirements until 2013 at the earliest

SGL GroupOutlook 2011: Double digit sales and EBIT growth

Group

• •Sales to rise at least 10%
• •EBIT grows to €150-165 million resulting in Group ROS of 10-11%
• • Net financial costs up on 2010(including results from at-equity consolidated companies)
• •Tax rate approx. 30%

Capex, Balance Sheet, Cash Flow

• •Key KPI: gearing level to remain at approx. 0.5 based on today's portfolio
• •Gearing ~0.5 defines capex level
• •Capex up to €150 million to be largely funded from operational cash flow
• •Resulting in free cash flow of minus €30-35 million

Key risks to forecasts

• •Raw material availability
• •Political and economic uncertainties

Fundamental long-term growth drivers and mid term outlook

Fundamental long-term growth drivers for our businesses

Strong growth in emerging countries(BRIC etc.)

•Industrialization

•Infrastructure build up

Increasing demand forgraphite electrodes and cathodes

Fundamental long-term growth drivers for our businesses

Our carbon based products offer sustainable solutions towards less CO2

2011 – 2015

Group sales to increase by more than 10% p.a. reaching €2.5 bn in 2015*

2011 – 2015Return on sales (ROS) target remains at minimum 12%

• •All business areas expected to be profitable from 2011 onwards
• •New assets coming on stream contribute to sales and cash flow growth
• • Higher capacity utilization especially in PP will lead to ROS ^≥12% from 2012

All three Business Areas become profit pillars as a result of a more balanced portfolio

2011 – 2015Capex remains high until 2012 – free cash flow positive expected from 2013

• •Major investments on schedule
• •Capex requirements up to €150 million p.a. in 2011 and 2012, declining thereafter
• •Capex continues to be funded almost entirely from operating cash flow
• •Positive free cash flow starting 2013
• •Gearing target remains at approx. 0.5 and is indicative for capex levels

2011 – 2015Return on capital employed (ROCE) target remains at minimum 17%

• •Anticyclical investments provide basis for long term growth
• • The resulting sales growth will lead to normalized capital intensity* improving from 110% in 2010 to ~80% in 2015 as investment pace slows and sales growth accelerates
• • As a consequence we expect to reach our Group ROCE target ^≥ 17% again towards the end of the planning period

*capital employed/sales, measure of capital invested per € of sales

2011 – 2015Performance Products

• • Investment in low cost carbon & graphite hub in Malaysia (graphite electrodes & cathodes) will enhance competitiveness
• •EBIT ROS burdened by increased depreciation
• • With fully integrated Malaysian plant on stream, ROS of ^≥20% will resume in 2012
• •Plans to increase our investment in Chinese electrode production
• •PP remains high performing business in terms of profitability, sales growth, and cash flow

2011 – 2015Graphite Materials & Systems

• • Accelerated sales growth of ^≥ 10% p.a. (previously 6-8% p.a.) due to rising demand from high growth end markets (semiconductor, photovoltaic, LED, lithium-ion batteries)
• • ROS to achieve ^≥10% target throughout planning period
• •GMS expects new record sales levels by latest 2012 and new record EBIT levels by latest 2013

Investor Relations PresentationPage 40

2011 – 2015Carbon Fibers & Composites

• • Sales growth raised from ^≥ 15% to ^≥ 20% p.a. (aircraft, wind, industrial and automotive applications)
• • Total CFC sales of more than €1bn targeted for 2015 including approximately €500 million sales of atequity accounted JVs (calculated on 100% ownership)
• •Positive EBIT from 2011 onwards
• • Target ROS ^≥10% by end 2013

*calculated on 100% ownership

To summarize….2011 – 2015 Key messages and 2015 targets

• • New assets leading to significant sales growth more than 10% p.a.
• •reaching Group sales of €2.5 billion by 2015
• • plus approximately €500 million from at-equity consolidated JVs in CFC (calculated on 100% ownership)
• • Sales growth targets raised
• • CFC from ^≥15% p.a. ^≥ 20% p.a.
• • GMS from 6% - 8% p.a. ^≥10% p.a.
• •PP reaches record sales levels and delivers earnings growth
• •All three Business Areas become profit pillars as a result of a more balanced portfolio
• • Group ROS target ^≥12% to be reached from 2012 onwards
• • Group ROCE target ^≥17% to be achieved by end 2015
• •Gearing target remains at approx. 0.5
• •Free cash flow expected to turn positive in 2013

Thank you for your attention !

Any Questions ?

Important note:

This presentation contains forward looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward looking statements are associated with known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from the assessment published in this presentation. Forward looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal and business conditions, particularly relating to our main customer industries, such as electric steel production, to the competitive environment, to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that may arise in our opinion include price developments, unexpected developments associated with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs. SGL Group assumes no responsibility in this regard and does not intend to adjust or otherwise update these forward looking statements.