SGL CARBON SE — Investor Presentation 2012

Aug 28, 2012

Deutsche Bank 9th German Corporate Conference

Raj Roychowdhury, Head of Investor Relations

Tokyo, 27 - 28 August 2012

Company profile

• • 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
• •47 production sites worldwide

• • Service network covering more than 100 countries

• •Sales of ~€ 1.5 bn in 2011

• •Head office in Wiesbaden/Germany
• •Approx. 6,500 employees worldwide
• • Constituent of German mid cap index, MDAX

Introduction to SGL Group's Businesses

SGL Group Business structure

Investor Relations Presentation

Page 4

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

Base MaterialsPerformance Products (PP)

Performance ProductsGraphite electrode production process

• • GE critical to EAF furnace efficiency but only ~ 3% Graphite production 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 basis of multiyear contracts
• Production process takes up to 3 months

Performance Products

Graphite electrodes (GE) for steel production in EAFs

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

• • 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 only 1 – 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 scenarios 2003 – 2020 / Above pre-crisis scenarios

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

Base MaterialsPerformance Products (PP)

S 2 0 l a e s –	1 1	H i h l i h 2 0 1 1 t g g s
Ca ho de & t s Fu L in ing rn ac e s 1 4 %	G h i te & ra p Ca bo E lec de tro r n s 8 6 %	C i d i i h i l d t t t t o n n u e m p r o v e m e n n g r a p e e e c r o e • l v o u m e s C i f f l l i d M l i h i t t t t t o n s r u c o n o u n e g r a e a a y s a n g r a p e • ( & ) l t l t d t h d t i p a n e e c r o e s c a o e s c o n n e s o n u h d l s c e u e
M d i t t e u m e r m -	t a 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 •
R O S : •	1 2 0 % 5 –	M j i i i i i l t t t t a o r n a v e o n c r e a s e c u s o m e r v a u e • h h d l i d i t t t t r o u g p r o u c q u a y a n c o n s s e n c y

Advanced MaterialsGraphite Materials & Systems (GMS)

Graphite Materials & Systems Best solutions for our customers …

Graphite manufacturing passes multiple process steps and requires 4 to 6 months of production time (net)

Graphite Materials & Systems Innovation 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 & Systems

Major customer industries and market shares 2011

Advan ced M aterial s
Graph ite Mat erials & System s (GMS )	Carbo n Fibe rs & Comp osites (CFC)

	% f l t t o o a G M S l 2 0 1 1 s a e s	G l b l k t o a m a r e h 2 0 1 1 s a r e
C h i l e m c a s	2 4 %	3 0 %
S E l n e r g y : o a r	% 2 1	% 2 5
E B i & N l t t n e r g a e r e s c e a r y : u	1 3 %	2 5 %
S ( ) i d t i l. L E D e m c o n u c o r n c	8 %	2 0 %
M t l l e a r g u y	% 7	% 2 0
T l f i t o o m a n u a c u r n g	6 %	1 % 5
A t t i 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 1 a e s –		H i h l i h 2 0 1 1 t g g s
N M k t e w a r e s 1 1 % P r o c e s s T h l e c n o o g y 2 1 %	G h i t r a p e S i l i t p e c a e s 6 8 %	R d l d R O S d h i h d d f t e c o r s a e s a n u e o g e m a n r o m • l l t i d t i a c s o m e r n s r e s u u C i t i 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 • f i i d d i d t i h 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 v o a c, e c. s o s a c g r a p e , 2 0 1 1 P T h l d d i t h d r o c e s s e c n o o g y e n e w r e c o r • b f d n u m e r o n e w o r e r s
M d i t t t e u m e r m a r g e s -		S t t i i i t i r a e g c p r o r e s
S l t h a e s g r o w : •	1 0 % > p. a	C f t k t t i t i i t i a p u r e 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 w m e y n v e s m e n s
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

Advanced MaterialsCarbon Fibers and Composites (CFC)

Carbon Fibers & Composites Best solutions for our customers

SGL Group The only integrated European carbon fiber producer

Recent Acquisition Fisipe: Precursor for Carbon Fiber Production Facts & Figures

Company

• •Established manufacturer of acrylic fiber specialties in Europe since 1973
• •Listed since 1985 (86.2% Negofor, 10.5% single investor, 3.3% free float)
• •Well developed logistics: Based near Lisbon with direct access to port facilities
• •2011 sales approx. €130 million
• •Positive cashflow and operating results
• •330 employees
• •Own energy supply (cogeneration plant)

Recent Acquisition Fisipe: Precursor for Carbon Fiber Production Decisive for Cost and Quality

Precursor: Most important raw material for carbon fibers

• • Determines material properties of carbon fibers
• • Primary factor for carbon fiber manufacturing costs
• •Based on polyacrylonitrile fibers (PAN)
• • Differentiation by filaments per fiber bundles
• Heavy Tow 24.000 (24K) filaments or more
• Low Tow 12.000 filaments (12K) or less
• •Industrial Grade: 50K carbon fiber

Advanced MaterialsCarbon Fibers and Composites (CFC)

S 2 0 1 1 l a e s –	H i h l i h 2 0 1 1 t g g s
C b F i b & a r o n e r s R B l d t o o r a e s C i t o m p o s e 1 3 % M t i l a e r a s 5 0 % A t t e r o s r u c u r e s 3 % 7	C & C ( C / C ) b F i b i t M t i l F M a r o n e r s o m p o s e a e r a s : • I d l d i i l i i t t t 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 – J V i t h B M W G f t t i t i l i s w r o u p 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 – h d l o n s c e u e ( S ) A t t A e r o s r c r e s u u • I d f i b i l i d f h f t t t t t m p r o v e p r o a y u e o u r e r r a m p u p o c u s o m e r – j t i t t i t t i t t f t h p r o e c s ; n e w n v e s m e n s n a u o m a o n o s u p p o r u r e r & f t h i d b i g r o n a e r o s p a c e e e n s e s n e s s w u ( ) R t B l d R B o o r a e s : • W i d i d j d l d l l i f j t t t n n u s r y p r o e c e a y s a n c a n c e a o n o a m a o r – d d l k f l d l t i l i t i o r e r c a u s e a c o s a e s a n o w u z a o n
M d i 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 1 0 > : • ( f b d 2 0 1 3, b j t t i d e n o s e c o n y u w k d l ) t t e n e r g y m a r e e v e o p m e n s	B l i f h i f f k t e c o m e s u p p e r o c o c e o r o u r o c u s m a r e s • A t t i u o m o v e – A l t t i i 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 – C I d t i l, t t i n s r a o n s r c o n u u – E d C b F i b d C i i i t t x p a n a r o n e r a n o m p o s e c a p a c e s • S t i t h i t h t t d t h i d 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 t i 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 future SGL Excellence – enables productivity and growth

Ensuring the future SGL Excellence savings

Since 2002 continuous cost reduction of €257 million in total

Annual Net Savings (€m)

Near term outlook

SGL Group Outlook 2012 strongly dependent on macroeconomic development in H2

Group

• •Assuming world economy will begin to pick up pace in H2, FY 2012 sales to grow vs. 2011
• •EBIT to remain on 2011 level of approx. €160 million due to higher losses in CFC vs. 2011
• • Relief from lower loss from investments accounted for At-Equity, financial result will be impacted by new convertible bond issue in April 2012

Capex, Balance Sheet, Cash Flow

• •Key KPI: target gearing level to remain at approx. 0.5 based on today's portfolio
• •Gearing ~0.5 defines capex level
• •Capex up to €150 million (including Fisipe) to be largely funded from operational cash flow
• •Free cash flow (excluding acquisitions and dividend payment for FY 2011) of up to minus €60 million
• • Free cash flow including payments relating to Fisipe acquisition (excluding dividend payment for FY 2011) of approx. minus €115 million

Key risks to forecasts

•Political, economic, financial market related uncertainties

Financing Structure, Balance Sheet Ratios and Cash on Hand Allow 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)
• • €145.5 million* Convertible Bond at 0.75%, adjusted conversion price of €36.30 (maturity 2013) (originally €200 million prior to conversion)
• •€200 million credit facility, undrawn (original 2012 maturity extended to 2015)

Followed by supplemental debt instruments in June 2009 and in April 2012

• • €134.7 million* Convertible Bond at 3.5%, adjusted conversion price of €29.21 (maturity 2016) (originally €190 million prior to conversion)
• •€240 million Convertible Bond at 2.75%, adjusted conversion price of €43.84 (maturity 2018)

SGL Group has solid balance sheet ratios and liquidity at end of June 2012

• •Equity ratio: 44%
• •Gearing: 0.51
• •Total liquidity: €267 million

SGL Group has currently no refinancing requirements

* As at July 31, 2012

Fundamental long-term growth drivers and mid term horizon

Fundamental long-term growth drivers for our businesses

Strong growth in emerging countries (BRIC etc.)

•Industrialization

•Infrastructure build up

Increasing demand for graphite electrodes and cathodes

Fundamental long-term growth drivers for our businesses

Our carbon based products offer sustainable solutions towards less CO2

Mid Term HorizonGroup Sales to increase by more than 10% p.a.*

Mid Term Horizon Return on Sales (ROS) target remains at minimum 12%

• •Outlook for 2012, especially for H2, uncertain due to unclear macroeconomic environment
• •New assets coming on stream contribute to sales and cash flow growth
• •Higher capacity utilization expected to lead to ROS ^≥ 12% in course of 2013

Mid Term Horizon Return 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 109% in 2011 to ~80% 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

Mid Term Horizon Capex remains high until 2012 – Free Cash Flow positive expected from 2013

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

Mid Term Horizon Performance Products

• •Investment in low cost carbon & graphite hub in Malaysia will enhance competitiveness
• • ROS estimated at upper end of long term average bracket 15 - 20% for a transitory period due to slowed global growth and delayed recovery of investment spending in aluminum industry
• •Longer term target ≥20% still achievable
• •Plans to increase our investment in Chinese electrode production
• •PP remains high performing business in terms of profitability, sales growth, and cash flow

Mid Term Horizon Graphite 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
• • 2012 EBIT ROS expected to be affected by cyclical downturn in solar and LED industries following record performance in 2011

Mid Term Horizon Carbon Fibers & Composites

*calculated on 100% ownership

• •Sales growth target remains ^≥ 20% p.a. despite wind energy market related setbacks in recent years
• •Sales growth driven by continued material substitution in aircraft, wind, industrial and automotive applications
• • Total CFC sales of more than €1bn targeted for end of planning period including approximately €500 million sales of At-Equity accounted JVs (calculated on 100% ownership)
• •Target ROS ^≥ 10% by end 2013 potentially at risk due to wind/rotor blade business

Mid Term Horizon

Key Messages and Targets on track

• •New assets leading to significant sales growth more than 10% p.a.
• • Reaching Group sales of more than €2.5 billion
• • in addition approximately €500 million from At-Equity accounted JVs in CFC (calculated on 100% ownership)
• • Sales growth targets raised and confirmed
• • CFC from ≥15% p.a. ^≥ 20% p.a.
• •GMS from 6% - 8% p.a. ^≥ 10% p.a.
• •PP reaches record sales levels
• •All three Business Areas to become profit pillars as a result of a more balanced portfolio
• • Group ROS target ^≥ 12% to be reached in course of 2013 (subject to macroeconomic and political developments)
• •Group ROCE target ^≥ 17% to be achieved by end of planning period
• •Gearing target remains at approx. 0.5
• •Free cash flow expected to turn positive in 2013

Thank you very much for your attention - I am now happy to take your 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.