SGL CARBON SE

Investor Presentation • Aug 3, 2023

H1 2023 Results

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

Wiesbaden I August 3, 2023

Agenda

• 1. Highlights
• 2. H1 2023 Results
• 3. Deep dive CF
• 4. Summary

H1 2023: Solid Group numbers

Financials			Business			Outlook
560.5 mEUR Group sales 1.9% up – driven by rising demand from semiconductor customers		Equity Ratio 36.1% at (31.12.2022: 38.5%)	Increasing demand from semiconductor industry - especially SiC-customers leads to significant growth in	GS	Strong business development in PT and CS	After six months in 2023: confirmation of sales and earnings forecast at group level
Stable EBITDApre 88.0 of mEUR despite strong deterioration in BU Carbon Fibers	Net financial debt 169.9 mEUR and stable leverage ratio of 1.0		CF burdened by temporary downturn in wind industry resulting in an impairment of 44.7 mEUR		One third higher capex in 2023 to increase production capacities in GS	Guidance 2023: Sales: previous year level EBITDApre: between 160 – 180 mEUR

H1 2023 Results

"H1 2023 in line with expectations"

Stable sales and EBITDApre confirm 2023 as stabilization year

Key developments

• Sales development: GS (+37.2 mEUR), PT (+15.2 mEUR) CS (+10.0 mEUR) and CF (-50.9 mEUR)
• Improvement in profitability due to product mix changes in GS as well as positive developments in PT and CS
• Solid financial Group figures in H1 2023

Graphite Solutions (GS) – growth expectations on track

EBITDApre (in mEUR)

Key developments

Sales

• Strong rise in semiconductor sales yoy (+51%)
• Full capacity utilization for graphite components for semiconductor industry
• Automotive also increasing; Solar & Chemicals down

EBITDApre

• Positive effects due to high utilization and product mix benefits
• Reallocation of capacity from solar to higher-margin semiconductor business

Process Technology (PT) – large projects support growth

EBITDApre (in mEUR)

Key developments

Sales

• Last year's order intake leads to strong sales increase
• Order intake H1 2023 remains on high level
• Growth in all three regions (Europe, Asia, America)

EBITDApre

• Higher utilization rates and strict cost management
• Positive product mix effects

Carbon Fibers (CF) – negative impact from downturn in wind industry

H1 2023 H1 2022

6.1

Key developments

Sales

• Scheduled expiry of i3 supply contract in June 2022 affects half-year comparison
• Temporary downturn in demand from wind energy customers

EBITDApre

• Lower sales burden profitability
• Partial production shutdowns with unchanged fixed costs impact profitability
• 11.0 mEUR at-equity result
• Impairment of 44.7 mEUR of assets in CF required due to temporary downturn in wind

8

Composite Solutions (CS) – positive business development continues

EBITDApre (in mEUR)

Key developments

Sales

• Strong demand from automotive customers (large- and small-scale solutions)
• Negative effect from sale of Gardena business (USA site) in February 2023 already compensated

EBITDApre

• H1 2022 positively affected by compensation payments from automotive customers of 3.7 mEUR
• Discontinuation of Gardena business beginning of 2023
• Positive earnings performance despite above mentioned operative one-time effects mainly from strong growth of large series business

Corporate – One-time effects impact sales and earnings

Key developments

Sales

• Sale of Gardena (USA) and Pune (India) site allocated to Corporate until divestment on February 16 and April 28, 2023

EBITDApre

• Results Gardena and Pune site allocated to Corporate
• Lower provisions for variable compensation
• Higher service proceeds and continued strict cost management

CF Impairment burdens net result

Deep dive CF

"The future of Carbon Fibers"

SGL Carbon to transform its Carbon Fiber business

Transformation steps

Until 2022 (BMW i3)	2023 (Wind Crisis)	After 2024
• SGL carbon fiber focused on BMW i3 (take-or-pay, high margin)	• Wind energy in 10 years low in 2023	• SGL expects recovery of wind market in 2024
• BMW i3 discontinued in 07/2022 • Capacity re-allocated to wind energy	• High carbon fibers inventories	• SGL to diversify fiber portfolio for better resilience
	• SGL partially idled capacity since June 2023

The wind market's paradox - Carbon Fiber market forecasted to grow, but market participants currently with low profitability

Wind carbon fiber market (in ktons)

Drivers wind recovery

• Growth in wind energy turbines
  • offshore +18% CAGR
  • onshore +2.4% CAGR
• Larger blades (>90m) need carbon fiber
• Average carbon fiber demand growth in wind CAGR > 10%

¹ Wood Mackenzie - Global Wind Turbine Supply Chain Trends, 2021, ² . IHS - Green Power Materials, 2023, 3. IHS - Carbon Fibers Chemical Economics Handbook, 2022

New higher margin Carbon Fiber application – stepwise migration

New carbon fiber markets

H² Pressure Vessels Construction Aerospace Concrete Rebars

• Mid-term
• Volume: medium
• Launched Q2/2023, already customers, others sampled

• Mid-term
• Volume: small
• Concrete refurbishment already existing business

• Long-term
• Volume: medium

• Special CF IM fiber, approval & redesign ongoing at Airbus/Boeing

• Long-term

• Volume: medium
• Carbon fibers with thermoplastics, local approvals needed

4 Summary

"Expected strong GS, extraordinarily positive development in PT & CS, temporary downturn in CF"

H1 2023 operationally on track at Group level

Summary H1 2023

Financials on track		Operating Business	Markets
Stable sales growth	EBITDApre stable	High capacity utilization in GS, PT and CS	Continuing high demand from SiC customers
+1.9%	+0.1%	Product mix and volume effects lead to profitability	Solid call-offs from the automotive industry
Guidance confirmed		improvement	Temporary downturn in wind energy
Sales: previous year level EBITDApre: 160-180 mEUR		CF hit by downturn in wind industry

We are looking forward to your questions

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SGL Carbon to report EBIT / EBITDApre (exceptionals)

Definition of exceptionals (for 2023)

• Depreciation in accordance with IFRS:
  • ‒ effects of impairment (IAS 36)
  • ‒ purchase price allocations (IFRS 3)
  • ‒ effects 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

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.

Financial calendar and IR contact details

Financial calendar Contact

November 2, 2023

• Quarterly statement as of September 30, 2023
• Conference call for analysts and investors

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

www.sglcarbon.com