SGL CARBON SE

Investor Presentation • Jan 13, 2021

German Investment Seminar 2021

Virtual conference, Commerzbank

Dr. Torsten Derr CEO I January 2021

The Business Model

A global leader in carbon and graphite-based solution

SGL Carbon at a glance Characteristics

Material competence and application know-how in graphite & carbon fiber / fiber composites as well as high temperature processes

Competitive advantage by providing entire value chain

Diversified customer base, serving key megatrends such as mobility, digitization, energy

New business structure from Jan 1, 2021 onwards to provide more transparency & focus on homogeneous markets

New BU structure – strong positioning and promising drivers

Carbon Fiber & Materials (CF) Composite Solutions (CS) Graphite Solutions (GS) Process Technology (PT)

• Textiles and precursor
• Oxidised fibers (Panox)
• Carbon fibers
• Fabrics and wovens
• Prepregs

Main growth drivers

• Wind energy
• Automotive

• Composites parts (CF, GF, leaf springs, battery cases)
• Wet friction applications
• Thermal insulation
• Carbon/Carbon products

• Isostatic and extruded graphite
• Press-to-size products
• Machined, purified and coated parts
• Gas diffusion layer (fuel cell)
• Graphite anode material (LiB)

• Graphite heat exchangers
• Graphite pumps
• Synthesis systems
• Service and parts

• PTFE products

• Automotive (lightweight and electro mobility)

• Commercial Aerospace
• Fuel cell and Li-ion batteries
• Semiconductors and LED
• Automotive industry

• Chemical and petrochemical industry

SGL Carbon – globally active in attractive markets

Key figures¹

• ~ €0.9 billion Sales
• Low double-digit € million EBIT & margin
• 4,900 employees
• Active in 80 countries, 31 production sites globally

End-market sales split

Limited maturities in coming years allow restructuring

Maturity Profile as of 30.09.2020

Mortgage Loans Convertible SynLoan (undrawn) Corporate Bond

Shareholder structure dominated by anchor shareholders

Anchor investors

Structure:

• SKion GmbH: 28.5% (Investment company of Mrs. Klatten)
• BMW AG: 18.4%
• Volkswagen AG: 7.4%

Shareholder structure

New Management – first impressions 2

Restructuring – New management team has decades of experience

24 years industry experience 4 turnarounds in past 15 years

Dr. Torsten Derr, CEO Thomas Dippold, CFO

16 years experience in restructuring 3 turnarounds

Restructuring – Observations

Restructuring – "Formula Carbon" guidance for mindset and behavior

Restructuring program launched

New Organization enhances transparency, management rigor and efficiency

	From…			…to
	Reporting Segment	Reporting Segment	PRINCIPLES	Reporting Segment	Reporting Segment	Reporting Segment	Reporting Segment
s nit	BU BU Composites - Fibers & Materials & Systems	Graphite Materials	Distinct business model Homogenous customer base Manageable span of control >€100 million revenues	BU Carbon Fiber	BU Composite Solutions	BU Graphite Solutions	BU Process Technology
				Materials selling	Engineered Solutions	Solutions and feedstocks	Engineered solutions
			Allocated assets	€300m	€100m	€500m	€100m
	Central Innovation and Lab Sites			Complete backward integration	Grow high volume business	Focus on profitable niches	Improve global offering
			PRINCIPLES
			Global responsibility
p		From 20…	Increased efficiency Cost target			…to 10

Strengthen capital discipline

Key Priorities

• Be cash positive ("stop the bleeding")
• Reduce net debt to reasonable level
• Question cash-burning entities and businesses
• Businesses compete for a fixed capex budget
• Strengthen project approval process
• Improve working capital management
• Maintain sufficient liquidity headroom
• Stop unprofitable projects/activities
• Focus on investments with nearterm payback
• Be cost efficient
• Generate enough cash flow to selffund moderate growth path and pay a modest dividend

Restructuring program started in October 2020

• New organization and management
• Clear responsibilities & consequence management
• Incentives to be aligned to cash generation

New Organization Improved Performance Spend Control

• €100 million earnings improvement measures¹ from 2023 onwards

• 500 individual measures identified

• 500 reduction in FTE¹

• Hiring freeze Board approval needed

• Spend control tower
• CAPEX discipline

16

Restructuring – EBITDA impact of restructuring initiatives

>100 2020 2021 2022 2023 Recurring EBITDA effect included in budget Additional initiatives not incl. in budget

in € million

Key measures

• Total restructuring costs of ~ €40 million; half in Q4/2020
• Overall >670 initiatives with a contribution of >€100 million EBITDA
• Strict consequence management & counter-measures
• Additional cash potential from NWC initiatives

Net recurring impact¹

¹ versus 2019, before external counter effects

Impairment charge of €80-100 million in Carbon Fibers in Q4/2020

Details of impairment loss in reporting segment CFM (Composites – Fibers & Materials)

• Non-cash impairment charge of €80-100 million to be recorded in non-recurring items in Q4/2020
  • − New 5-year plan: prospects for certain markets changed considerably
  • − Impaired assets: approx. 20% goodwill and 80% property, plant & equipment

Reason for Impairment

• Automotive
  • − Industry on the whole challenged new drives, new competitors, increased pressure from legislation
  • − Less focus on lightweight construction carbon fiber composites adoption in automotive slower than initially planned
• Aerospace
  • − Civil aviation extensively affected by Corona crisis
  • − Recovery to 2019 levels not expected before 2024/2025, reduced built rates in airplanes
• Wind Energy
  • − Strong growth in market and for SGL large-tow carbon fiber
  • − Lower margin expectations compared to automotive and aerospace

Business units impacted by Covid-19 9M 2019 vs 9M 2020 Actuals

Sales¹ , € million EBITDA¹

¹BU split is preliminary and un-audited, notably Corporate expenses not yet allocated, LAC completely in BU CF

, € million

Sales

• PT, GS strongly impacted due to pandemic economic slow down
• CF: strong wind business could compensate partly for slow down in other business
• CS: new projects could compensate for shut-downs in Q2

EBITDA

• PT and GS decline, due to low sales
• CF improvement due to efficiency measures initiated in 2019
• CS decline due to automotive shut-down in Q2

SGL Carbon – Restructuring based on solid Carbon competence

Market Dynamics

• Material competence based on carbon¹ and high temperature processes (command entire carbon fiber and graphite value chain)
• High tech carbon fiber & graphite based engineered solutions
• Diversified customer base servicing more than 35 industries with structural growth perspective
• Sales growth will be fueled by the megatrends energy, mobility and digitization – with some trends (e.g. in digitization and sustainability) even gaining momentum due to the Corona crisis

Financials

• Restructuring, cost and headcount reduction started
• No maturities of financial instruments until September 2023
• Strong anchor shareholders

¹Carbon refers to the chemical element – graphite and carbon fiber are forms of carbon

Outlook – Focus now on performance, later on profitable growth

Short term Mid term Long term

• Secure financial headroom

• Stabilize operational performance

• Achieve satisfactory net debt level

• Selective investments

• Step up investments in market opportunities

23

Thank you for your attention!

New CEO Dr. Torsten Derr

• Born and raised in Bremen, northern Germany
• Studied and completed PhD in Chemistry in Bremen
• Started professional career
  • 10 years Bayer AG in various roles
  • 10 years Lanxess AG (Business Unit Head)
  • 4 years Saltigo GmbH, subsidiary of Lanxess AG (CEO)
• Overall 23 years experience in technology focused industries, of which 15 years with P&L responsibility
• Focus on restructuring & turnarounds
• "SGL Carbon and I are a good fit, I know how to manage technology focused businesses with an appropriate cost structure and a clear focus on market requirements"

New CFO Thomas Dippold

• Born and raised in Bamberg, southern Germany
• Studied and completed Business Administration degrees in Bamberg (D), Mainz (D) and Austin, Texas (USA)
• Started professional career at HSBC in Düsseldorf and London in Reporting, followed by Consulting Services
• Various Finance roles at Schott AG (D and Singapore)
• CFO at Semikron International in Nürnberg (D)
• CFO at Faber-Castell AG, Stein (D)
• CFO of stock exchange-listed Schaltbau Holding AG
• Overall 23 years experience in various finance roles, with particular focus on successful operational and financial restructuring and turnaround situations
• "I am fascinated by the Company's materials portfolio and competence and aim to support SGL Carbon's turnaround and sustainable path to profitability based on my restructuring expertise"

Backup Business Units

Composites – Fibers & Materials (CFM) – 1

Activities

• Carbon Fibers
• Composite Materials
• Composite Components
• Ceramic Brake Discs (JV with Brembo)

CFM sales 2019 [%] Key industries served

• Automotive
• Aerospace
• Energy
• Industrial Applications
• Textile Fibers

Composites – Fibers & Materials (CFM) – 2

Characteristics	Strategic priorities	CFM key figures
• New applications in automotive, energy, industrial	• Strengthen capabilities to safeguard globally leading position	in € million	2018	2019	9M/ 2020
• High earnings improvement potential	• Develop products and production technologies for innovative customer	Sales	422.5	431.6	283.4
Complete value chain in house		EBIT1	20.8	-8.3	10.6
	solutions • Exploit synergies across the value chain	EBIT-margin1	4.9%	-1.9%	3.7%
		1 ROCE EBIT	3.2%	-1.3%	0.7%
		Capex	21.5	27.8	10.4
		Headcount	1,722	1,698	1,614

Graphite Materials & Systems (GMS) – 1

Activities

• Anode materials
• Isostatic graphite
• Fiber materials
• Extruded graphite
• Die molded
• Expanded graphite
• Process technology

GMS sales 2019 [%] Key industries served

• Semiconductor
• LED
• Fuel Cell
• Lithium-Ion Battery
• Solar
• Automotive & Transport
• Chemical
• Industrial Applications¹

¹ e.g. electric discharge machining (EDM), oil and gas, glass, high temperature applications, metallurgy

Graphite Materials & Systems (GMS) – 2

• Higher value-added products enabling customer innovations
• Specialized, partially tailor-made, products for differentiated customers
• Innovation driven business
• Engineered products & solutions for customers from > 35 industries – some with high growth potential
• Characteristics Strategic priorities GMS key figures
  • Focus on forward integration and innovation
  • Combine material know-how and engineering competence
  • Advanced material, equipment, and process solutions in cooperation with customers
  • Global competence and presence
  • Improve cost competitiveness
  • Target new market segments

in € million	2018	2019	9M/ 2020
Sales	589.9	622.5	373.1
EBIT1	76.0	85.5	35.4
EBIT-margin1	12.9%	13.7%	9.5%
1 ROCE EBIT	16.5%	16.3%	8.7%
Capex	47.0	55.8	18.8
Headcount	3,008	3,141	3,088

Attractive Products from various Business Units 6

Wind energy – benefiting from trend to sustainable power generation

Trend to longer rotor blades in our favour

• Reasons for usage of such products
  • − High stiffness and high strength of carbon fibers
  • − Global footprint with modern production facilities
  • − Well established expertise and long term strategy of SGL in running industrial grade heavy-tow carbon fiber for high volume application
• Market dynamics
  • − Strong growth in sustainable power generation
  • − Usage of carbon fiber mainly for pultrusion components
• Participation of SGL Carbon
  • − SGL carbon fiber is qualified for nearly all OEM
  • − Strong capacity utilization of our carbon fiber plants in Moses Lake (USA) and Muir of Ord (UK)
  • − Clear focus on Carbon Fiber tow, full access to all levels of the market

Wind turbine

Cross section of a rotor blade

Main focus& potential on Top & Bottom plate Carbon fiber spar caps usually manufactured out of CF pultruded profiles, CF non-crimp fabric or CF prepreg

Components for Battery Cases – an attractive application

Benefiting from strong growth of e-mobility

• Key benefits
  • − Safety for passengers and other traffic participants (fire, crash, impact, electromagnetic shielding)
  • − Weight reduction up to 40 % compared to metals
  • − Thermal insulation
  • − produced in a highly automated process leading to competitive cost-performance-ratio
• Market dynamics
  • − CAGR of around 40% (electric vehicle market '20-'28)
  • − CAGR of 70% (long fiber composite battery case components '18-'25)
• Participation of SGL Carbon
  • − Usage of full value chain; from precursor to component
  • − One-stop shop from engineering to production
  • − Industry leader for high volume composite components

Battery Case prototype built with

Gas Diffusion Layers (GDL) with strong market growth in Asia

Non-replaceable component in Fuel Cells

• Reasons for usage of such products
  • − Enhancing efficiency of a fuel cell by:
    • homogenizing gas distribution
    • reducing electrical resistance
  • − Additional potential due to usage in electrolysis cells for the manufacturing of hydrogen
• Market dynamics/size
  • − Benefiting from strong growth in e-mobility
  • − CAGR of 40%
  • − Market size 2025: €500 million
  • − SGL Carbon amongst TOP 2 suppliers
• Participation of SGL Carbon:
  • − Long term contracts with leading OEMs (e.g. Hyundai)
  • − Global sales footprint of more than 200 customers

Fuel Cell Stack

Gas Diffusion Layer (GDL)

Semiconductor – strong demand from new technologies requiring dedicated solutions made from graphite specialties

Meander heater for the production of Si-based singlecrystals

SiC-coated wafer carrier

Megatrends drive double-digit market growth

• Reasons for usage of such products
  • − Silicon-based semiconductors: e.g. in 5G networks, high performance computing in memory & logic chips
  • − SiC-based semiconductors: electrified vehicles need Power Electronics
• Market dynamics/size
  • − Silicon-based semiconductor expected to grow 5-7% pa
  • − SiC will see growth of 20-40% pa from 2022/23 (technology breakthrough)
• Participation of SGL Carbon
  • − SGL offers customized solutions, combining isostatic graphite, carbon-carbon composites as well as insulation materials
  • − Tailored materials, enabled by full backwards integration
  • − Precision-machined, purified and/or surface treated
  • − Working with global leaders in their respective field

Graphite Anode Materials (GAM) for Lithium-Ion-Batteries

Graphite will remain the dominant material

• Reasons for usage of such products
  • − Graphite is the perfect material, with synthetic graphite being superior compared to natural graphite
  • − High cycle stability and good fast charging performance
  • − Scalable production processes to market demand
• Market dynamics/size
  • − Benefiting from strong growth in e-mobility and stationary power storage; GAM demand from announced EU LiB factory plans ca. 400 t/a by 2025
  • − CAGR (2020-25): 30%; Market size (2025): €5.8 billion
• Participation of SGL Carbon
  • − Tailor-made products based on SGL synthetic graphite
  • − Superior position of SGL in fast growing market Europe
  • − In different stages of qualification at cell makers and OEM
  • − European project funding potential under IPCEI
  • − SGL offers services via its Battery Application Lab

Synthetic graphite powder

Battery Application Laboratory

SIGRABOND® Chemical column internals based on CFRC

Benchmark in state-of-the-art column design

• Reasons for usage of such products:
  • − Weight advantage of factor 3 to 5 compared to alternative materials like exotic metals, plastics or ceramics
  • − Corrosion and temperature resistance up to 1000°C
• Market dynamics/size:
  • − Estimated accessible market size €30-50 million
  • − Mainly driven by debottlenecking activities in Western markets and upcoming requests for projects in Asia (e.g. CN)
• Participation of SGL Carbon:
  • − SGL is unique solution provider globally
  • − Sales of single components up to full column solutions
  • − Based on inhouse engineering

Support grid optimized for random packing

3200 mm in

Outlook FY 2020

Reporting segment outlook FY2020 CFM

• Sales revenues to decline by approximately 10%
  • − Cost saving capacity adjustments (conversion of one line to precursor for carbon fiber production and idling of two lines) in Textile Fibers and Covid-19-driven demand decline from Automotive
  • − Partially compensated by strong demand increase in market segment Wind Energy
• Recurring EBIT to improve to a slightly positive result
  • − Negative earnings effects of pandemic-driven lower sales revenues mitigated with personnel measures such as shorttime work as well as various spending reductions and postponements
  • − Earnings improvement measures implemented in Textile Fibers in H2/2019
  • − Price increases in Wind Energy business implemented early 2020

Reporting segment outlook FY2020 GMS and Corporate

GMS

• Sales revenues to decline by approx. 20% due to weaker demand in all market segments with exception of Semiconductors, which is expected to grow slightly
• Recurring EBIT expected to decline by at least 50% YoY
  • − Due to reduced sales revenue expectations as described above and resulting substantially lower capacity utilization

Corporate

• Expected substantial deterioration in operating recurring EBIT can mainly be attributed to
  • − Expected higher consulting costs in the reporting period
  • − Prior year benefiting from one-time gains from services provided to the buyer of the former PP-activities

Group outlook FY 2020. Net result guidance adjusted for impairment charge and restructuring provisions

• Unchanged: Full year Group sales revenues to decline by 15-20% YoY; full year operating Group recurring EBIT expected to be slightly positive
• Group recurring EBIT positively impacted by one-time effects of €8.5 million in Q3/2020 from SDK compensation payment
• Due to restructuring provisions and impairment charges, which will be recorded in the fourth quarter 2020, net result from continuing operations is below our prior guidance (improvement to a negative low double-digit million € amount) and below the prior year result of minus €90 million. We now expect net result of minus €130 million to €150 million
• Capex guidance unchanged at approx. €60 million
• Unchanged: Net debt at YE 2020 to increase by a mid double-digit million € amount due mainly to the payment of the purchase price for SGL Composites USA (USD 62 million)
  • − Significantly lower operating result compensated by above mentioned executed additional funding measures
• Given solid liquidity position at end Sept. 2020 (€167 million) plus additional cash inflow in Q4/2020, liquidity position remains comfortable despite planned purchase price payment in Q4/2020 and upcoming restructuring expenses
• In addition, we continue to have access to the syndicated loan of €175 million, which remains undrawn

Latest financials 9M/2020

Composites – Fibers & Materials. Benefited from strong wind energy business and earnings improvement measures

in € million	9M/2020	9M/2019	Δ
Sales revenue	283.4	328.6	-14%
EBITDA1	32.0	24.1	33%
EBIT1	10.6	-1.8	-
EBIT1 -Margin (in %)	3.7	-0.5	-
1 ROCE (in %) EBIT	0.7	-0.3	-

• Q3/2020 recovered from Covid-19 pandemic weakened Q2/2020 with EBIT turning substantially positive

• Sales revenue in 9M/2020 down 14% (no currency impact)

• − Strongest % decline as expected in market segment Textile Fibers due to idling of two acrylic fiber lines and conversion of one acrylic fiber line to precursor (part of earnings improvement measures initiated at the end of 2019)
• − Corona-related negative developments in market segments Automotive and Industrial Applications
• − Sales in Wind Energy increased by more than 60% stronger growth than initially expected
• − Aerospace remained relatively stable on a low level

44

• EBIT¹ in 9M/2020 increased substantially from low level in 9M/2019
  • − Substantially improved results in Wind Energy as well as implement earnings improvement measures only slightly offset by weaker Automotive business and approx. €4 million lower earnings contribution from At-Equity accounted investments

Graphite Materials & Systems. Increased Covid-19 impact in Q3/2020 due to late-cyclical nature of business

in € million	9M/2020	9M/2019	Δ
Sales revenue	373.1	480.1	-22%
EBITDA1	59.1	94.8	-38%
EBIT1	35.4	74.5	-52%
EBIT1 -Margin (in %)	9.5	15.5	-
1 ROCE (in %) EBIT	8.7	17.5	-

• Increasing impact from Covid-19 pandemic in Q3/2020 sales down by 25% YoY, EBIT down by 55% YoY
• Sales revenue in 9M/2020 down 22% (no material currency impact)
  • − All market segments declined compared to prior year period except Semiconductors, which grew by a low doubledigit percentage
  • − Related to expected lower demand in Battery & other Energy due to changes in supply chain of our customer as well as pandemic-driven lower business volumes in most market segments
• EBIT in 9M/2020 decreased by 52% from record level in prior year
  • − IFRS 15 effect alone contributed roughly €10 million to earnings decline
  • − In line with sales revenue, almost all markets segments recorded lower earnings compared to prior year period
  • − Only market segments Semiconductor and Automotive & Transport remained stable and close to prior year level

¹Adjusted to reflect the reclassification of the business with gas diffusion layers from Corporate

45

Corporate. Sales and EBIT benefited from compensation agreement with Showa Denko

in € million	9M/2020	9M/20191	Δ
Sales revenue	27.0	23.7	14%
- of which Central Innovation	1.1	0.7	57%
EBITDA	-5.1	-11.7	56%
Recurring EBIT2	-12.1	-18.5	35%
EBIT (reported)	-13.6	-18.5	27%
- of which Central Innovation	-7.2	-7.5	4%
EBIT3 Operating recurring	-20.6	-18.5	-11%

• In July 2020, SGL and Showa Denko (SDK) mutually agreed to prematurely terminate all contractual relationships between the two parties against a low double-digit million € compensation payment from SDK. An amount of €8.5 million of the compensation related to the early termination of rental and service contracts and was recorded as positive onetime effects in sales revenue and recurring EBIT in Q3/2020
• Sales revenue increased by 14% (no currency effect), recurring EBIT by approx. 35% due to the agreement with SDK
• Operating recurring EBIT remained 11% below prior year level as expected due to higher consultancy costs and lower services provided to divested business units (former Business Unit Performance Products resp. PP)

¹Adjusted to reflect the reclassification of the business with gas diffusion layers to the reporting segment GMS; ²EBIT before non-recurring items of minus €1.5 million in 9M/2020; 3EBIT before positive one-time effects of €8.5 million and non-recurring items of minus €1.5 million in 9M/2020

Group P&L. Despite improved net financial result, significant recurring EBIT decline leads to slight loss in net result – 1

in € million	9M/2020	9M/2019	Δ
Sales revenue	683.5	832.4	-18%
EBITDA before non-recurring items	86.0	107.2	-20%
EBIT before non-recurring items	33.9	54.2	-38%
ROCE (in %) EBIT	2.3	4.7	-
Non-recurring items/Impairment charge	-9.1	-81.0	-89%
EBIT	24.8	-26.8	-

• Drivers of Group sales revenue, recurring EBIT, and operating recurring EBIT development described on prior pages

Group P&L. Despite improved net financial result, significant recurring EBIT decline leads to slight loss in net result – 2

in € million	9M/2020	9M/2019	Δ
Net financial result	-23.4	-32.6	28%
Profit/loss before tax	1.4	-59.4	-
Income tax expense, non controlling interests, results from discontinued activities	-5.3	-15.1	65%
Consolidated net result attributable to shareholders of parent company	-3.9	-74.5	95%
Operating EBIT before non-recurring items	25.4	54.2	-53%

• Net financial result improved due to
  • − Absence of interest expenses for 2015/2020 convertible bond (still included in previous year)
  • − Lower interest expenses for pensions in current year
  • − Negative one-time impact of €6.3 million from early repurchase of 2015/2020 convertible bond in Q3/2019
• Net result of prior year included impairment loss. Net result in reporting period improved, but still slightly negative due to significant decline in recurring EBIT

Group balance sheet. Improved liquidity and solid financial ratios as of September 30, 2020

in € million	30.09.2020	31.12.2019
Equity ratio (in %)	25.6	27.8
Total liquidity	166.8	137.1
Net financial debt	262.4	288.5
Gearing (net debt/equity)	0.71	-0.69
Leverage ratio (net debt/EBITDA)	2.66	2.40

• Equity ratio declined slightly mainly due to lower pension discount rate environment in Germany and USA
• Increased liquidity to nearly €167 million at end of 9M/2020 compared to approx. €137 million at year-end 2019
  • − Despite substantial adverse pandemic-related effects in operations and business development particularly in CFM in Q2 and GMS in Q3, liquidity further increased during ytd 2020
• Improvement in net financial debt primarily attributable to positive free cash flow from continuing operations of €43.7 million
  • − Slightly offset by repayments for lease liabilities of €13.5 million and payments for discontinued operations of €2.0 million

Group cash flow. Positive free cash flow due to effective working capital management and lower capex

in € million (continuing operations)	9M/2020	9M/2019
Cash flow from operating activities	68.8	29.9
Cash flow from investing activities	-25.1	-39.5
• Capex in property, plant, equipment and intangible assets	-33.2	-50.7
Cash flow from other investing activities1 •	8.1	11.2
Free cash flow	43.7	-9.6
Free cash flow from discontinued operations	-2.0	-9.8

• Cash flow from operating activities improved significantly to €68.8 million from €29.9 million despite lower earnings primarily due to improved net working capital management
• Free cash flow from continuing operations improved significantly to €43.7 million from minus €9.6 million in prior year
  • − Substantial improvement in operating cash flow
  • − Significantly lower capex (-35%) as we push back some expenditures to preserve liquidity in current uncertain environment
• Free cash flow from discontinued operations also improved significantly and included a tax payment for prior years for former business unit PP
  • − Prior year included cash outflow relating to final settlement payments to buyer of HITCO Aerostructures

¹Dividends received, payments for capital contributions in investments accounted for At-Equity, and other financial assets, payments for acquiring remaining stakes in our joint ventures, proceeds from sale of intangible assets and property, plant and equipment

Financial Development

Quarterly trend of key balance sheet figures

		31.12.2019	31.03.2020	30.06.2020	30.09.2020
	Total Gross Debt	426	431	430	429
Total Net Debt in € million	Cash and cash equivalents	-137	-150	-154	-167
	Total Net Debt	289	281	276	262
	Undrawn credit lines	175	175	175	175
Equity ratio & Gearing	Shareholder equity	419	443	398	372
	Total Assets	1.505	1.500	1.461	1.454
	Gearing	0.69	0.63	0.69	0.71
	Equity ratio	27.8%	29.6%	27.3%	25.6%
Net debt/EBITDA1		2.4	2.6	3.0	2.7

Backup various

Global presence SGL Carbon worldwide sites

Sustainability at SGL Carbon - As a technology-based company, we are aware of our environmental and social responsibility

Environmental Social Governance

• Social
• Energy management system ISO 50001-certified from DQS and DEKRA (incl. the non-European sites Moses Lake, Gardena and Arkadelphia)
• Electricity from renewable sources in particular at the sites Moses Lake, Wackersdorf and Innkreis
• Stringent resource management and reporting (i.e., waste and water)
• Assessment of environmental impact of product portfolio
• SGL Carbon Code of Conduct respecting the principles of the UN Global Compact
• Global EHSA policy (safe and healthy working conditions, minimization of environmental impact of our business activities)
• Human rights policy incl. grievance mechanisms

• Supplier Code of Conduct anchored in general purchasing conditions

• Distinct sustainability targets for the Board of Management (introduced 2020)

• Comprehensive risk management incl. non-financial risks, e.g., climaterelated risks
• Compliance Management System* incl. whistleblower hotline
• Comprehensive compliance training programs (physical and online)
• Global Anti-corruption program

Participation in (first time 2020) and various supplier assessments incl. Ecovadis, IntegrityNext and NQC

Update on COVID-19 impact on our operations

SGL implemented countermeasures very early

• In spring of 2020, SGL Carbon successfully implemented Corona countermeasures early in order to prevent a spread of the COVID-19 virus within the organization and the sites
• These countermeasures were eased during the summer months 2020, but were reinforced in autumn in order to manage the second wave that is still rolling over the northern hemisphere
• At the moment, SGL Carbon has 39 infected employees, and 42 employees are in preventive quarantine
• Since the beginning of the outbreak, a total of 149 employees were infected by Corona, thereof 110 already recovered
• Despite the increasing numbers worldwide, SGL carbon managed to flatten the curve. Almost all infections of SGL employees happened in the private environment.
• Even though the uncertainty regarding a second pandemic wave and an associated further decline in demand due to a recession increased recently, we are able to confirm our guidance for Group sales and Group operating recurring EBIT for fiscal year 2020

Financial calendar/contact details

Financial calendar 2021		Contact
March 25, 2021	Annual Report 2020	SGL Carbon SE Soehnleinstrasse 8 65201 Wiesbaden Germany
May 12, 2021	Quarterly Statement as of March 31
May 21, 2021	Annual General Meeting
August 12, 2021	Report on the first half year 2021	Phone	+49 (0) 611 - 6029 - 103
November 11, 2021 Statement on the nine months 2021	Fax	+49 (0) 611 - 6029 - 101
			investor-relations@sglcarbon.com www.sglcarbon.com