SGL CARBON SE — Investor Presentation 2021

Aug 12, 2021

H1 2021 results "First Steps to Success"

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

Wiesbaden I August 12, 2021

Agenda

- 1. Recent Developments 2. H1 2021 Results 3. Outlook 2021 4. Summary 5. Backup

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2

Recent Developments 1

"Successful steps into the right direction"

H1 2021: Business development accelerated & FY '21 outlook raised

					H1 2021: Business development accelerated & FY '21 outlook raised
Financials		Business		Outlook
496.7 mEUR Group sales. 8.8% up – driven by rising demand in our key markets		Equity Ratio at 20.8% (31.12.2020: 17.5%)	Restructuring program successful on track	Order intake from automotive industry gains momentum	Outlook for FY2021 raised on July 13
Significant
recovery of EBITDApre with increase of 29.7 mEUR (+70.7%) to 71.7 mEUR	246.7 mEUR net financial debt - further reduction by 13.9%		Encouraging development in LED and semiconductors business	Cost increases compensated by price increase initiatives and additional savings	Now EBITDApre between 130 – 140 mEUR and sales of approx. 1 bnEUR expected

4

H1 2021 Results

"Back on a profitable path"

SGL Carbon – Profitability improvement compared to sales growth

6

Sales Split (in %)

Key developments

• 42.0 Significant sales plus in CF (+19.8mEUR) and CS (+20.7mEUR)
  • Sales growth and transformation achievements lead to strong earnings improvement

SGL Carbon – Positive development in almost all business units

Key developments

• higher sales in automotive and semiconductor business
• PT: Sales down by 9.1%. Order intake slightly recovered in Q2, but still far from pre-pandemic level
• CF: Sales increase of 13.5% based on dynamic demand from automotive industry
• CS: Sales rise by 52.4% due to automotive customer demand and ramp-up of new projects

8

SGL Carbon – Recovery in most of our key markets Graphite Solutions Process Technology Carbon Fibers Composite Solutions Chemicals Automotive Automotive Semiconductor Significantly lower order Recovering demand and Dynamic growth and Continued high demand – intake due to pandemic strong order entry increasing potential for strong growth potential related postponement of large scale solutions Automotive & Transport Wind energy projects Rising and satisfactory Aerospace Stable but below demand expectations Slightly above expectations but still Battery Materials Aerospace difficult industry situation Dynamic market Stable on a low level development – mid term Industrial Applications potential Textile Fibers Not yet back to the level before Corona Solar Sales increase due to volume and price effects Stable business Industrial Applications Chemicals Constant demand Late cyclical – demand lags Industrial Applications Limited recovery

Graphite Solutions (GS) – Semiconductor strong

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Key developments

Sales

• Semiconductor sales increase by 20 % yoy
• Positive effect from contract termination (H1 2021: approx. 4mEUR)

• Industrial still weak (late-cyclical business)

• Positive effects due to savings and higher utilization

• Slight negative effect due to higher raw material prices

Process Technology (PT) – Demand remains weak

Key developments

Sales

• Pandemic-related sales decline in last quarters
• Demand from chemical industry remains weak
• Slight recovery in order intake not yet reflected in sales

EBITDApre

Negative volume effect could not be offset by savings from transformation

Carbon Fibers (CF) – Strong profitability improvement

Key developments

Sales

• Strong topline due to higher demand from automotive

• Demand for acrylic fibers continues to rise

• Pass-through of major raw material price increases
• Improved asset utilization at reduced cost
• EBITDApre doubled Earnings contribution from BSCCB joint venture 6mEUR higher than in previous year

Composite Solutions (CS) – Strong growth driven by automotive

Key developments

Sales

• Large scale solutions for automotive boost sales
• Pandemic-related catch-up effects

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

• Higher capacity utilization

• Product mix driven increase in earnings

Corporate – Development into internal service provider

EBITDApre (in mEUR)

Key developments

Sales

• Strong decline due to SDK* termination in Meitingen
• Lower services to divested businesses

• Lower rental income due to sale of land and buildings

• One-off consulting expenses

• Lower revenue could not be offset by savings from transformation * SDK = Showa Denko

Getting better and better step by step

Key figures and ratios (in mEUR)

Getting better and better step by step
Key figures and ratios (in mEUR)			Key developments
	30.06.2021	31.12.2020	 Balance sheet solid
Equity ratio (in %)	20.8	17.5
Total liquidity	184.3	141.8	 Decreased net financial debt due
Net financial debt	246.7	286.5	to increased liquidity
Leverage ratio (net debt/EBITDApre)	2.0	3.1
	H1 2021	H1 2020
ROCE (in %) EBITpre	4.9	1.6
Cash flow (in mEUR)
	H1 2021	H1 2020	 Operating cash flow reflects good business performance
Capex	65.9 -15.2	50.5 -19.9
Cash flow from operating activities Cash flow from investing activities	-9.4	-14.2	 Capex below previous year  Dynamic FCF development

	H1 2021	H1 2020
ROCE EBITpre (in %)	4.9	1.6

Key developments

• Balance sheet solid
• Decreased net financial debt due to increased liquidity
• Equity ratio stabilized above 20%
• ROCE significantly improved
• Operating cash flow reflects good business performance
• Capex below previous year
• Dynamic FCF development

Focus on bottom line & cash pays off

Key figures (in mEUR)

15 * Adjusted with IAS 7.33 presentation of interest payments now in financing CF; prior year adjusted

Key developments

Net result

Clear turnaround

Free cash flow/Net financial debt 286.5

• FCF increased 20.2 mEUR (55.6%).
• Net financial debt decreased by 39.8mEUR (13.9%)
  • Cash increase of 42.5mEUR to 184.3mEUR due to positive FCF

3 Outlook

"Deliver, deliver, deliver"

Price increases and savings compensate higher raw material costs

			Price increases and savings compensate higher raw material costs
	Cost effects		Differentiated price increases
 Raw materials  Logistics  Energy  Secure availability	+20-50% +>>100% rollover	large effect small effect no effect in 2021	 Price increases initiated in all BUs  Rigor depending on growth ambition and plant utilization  Large contracts with raw material clause
	 	Optimization of absolute Margin before volume strategy	EBITDApre by business unit

• Margin before volume strategy

SGL Carbon – Outlook for FY2021 raised

EBITDApre (in mEUR)

Sales (in mEUR)

Key drivers

• Successful implementation of transformation program
• Order entry improved in all Business Units
• Focus on improvement of existing businesses
• Margin before volume strategy

SGL Carbon – Focus on bottom-line and cash

Other guidance KPI 2021

Other guidance KPI 2021
in mEUR	Actual 2020	Previous Guidance 20211)	Updated Guidance 20211)
ROCE EBITpre	1.8 %	slight improvement	significant improvement
Consolidated net result	– 132.9	– 20 to 0	slightly positive
Capital expenditure	55.8	at the level of depreciation (approx. 60)	at the level of depreciation (approx. 60)
Free cash flow	93.9	20	> 20
1) "Slight" indicates a variation of up to 10%; "significant" indicates a variation of more than 10% 20

			Composite Solutions
slight increase	stable	significant increase (prev.: stable)	significant increase
significant increase EBITDApre	stable	significant increase (prev.: slight increase)	significant increase (prev.: slighly positive)
Growth & profitability driver
 Automotive  Semiconductors  Graphite for Lithium-Ion	 Catch-up demand in the chemical industry	 Wind energy  Recovery Automotive	 Automotive  Electromobility
	Graphite Solutions Batteries	Outlook on Business Unit level Process Technology	also increased Carbon Fibers

4 Summary

"Creating the basis for sustainable profitability and growth"

SGL Carbon "back in black"

1.	Successful transformation supporting positive earnings development
2.	Pick-up in demand particularly from automotive and semiconductor
3.	Capacity utilization leads to cost degression effects
4.	Higher raw material costs compensated by savings and price increases
5.	Improved liquidity (+42.5mEUR vs. 2020) and lower net financial debt (-39.8mEUR vs. 2020)
6.	Guidance for FY2021 raised

Q&A

We are looking forward to your questions

© Copyright SGL Carbon SE ® Registered trademarks of SGL Carbon SE

Financial calendar and IR contact details

Financial calendar Contact

November 11, 2021

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Investor Relations SGL Carbon SE Söhnleinstrasse 8 65201 Wiesbaden/Germany Phone: +49 611 6029-103 E-mail: Investor-Relations@sglcarbon.com Report on the first nine months 2021 Conference call for analysts and investors

www.sglcarbon.com

Backup

Net result turned positive

Group income statement (in mEUR) Key developments

Net result turned positive
			Key developments
	H1/2021	H1/2020	 Sales plus 8.8%
	496.7	456.5	- Recovery of demand in key
	71.7	42.0	markets
Group income statement (in mEUR) Sales EBITDApre EBITpre	43.5	8.7
Exceptionals	-5.2	-3.0
	38.3	5.7	- Product mix
EBIT Financial result	-14.0	-15.8	- Successes transformation
Results from continuing operations before income taxes	24.3	-10.1
Income tax expense and non controlling interests	-6.4	-3.7

• Sales plus 8.8% Recovery of demand in key markets EBITDApre plus 70.7% - Higher sales, higher utilization EBITpre quintupled Net result turned positive
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  • Product mix
  • Successes transformation program

Business unit performance H1 2021 vs. H1 2020

Sales (in mEUR)

EBITDApre (in mEUR)

Corporate not shown

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SGL Carbon to report EBIT / EBITDApre (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

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• 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

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 Carbon'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.

© Copyright SGL Carbon SE ® Registered trademarks of SGL Carbon SE