SGL CARBON SE

Investor Presentation • Nov 7, 2024

Ssgl carbon

9M 2024 Results Investor \& Analyst Conference Call

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

"9M 2024 development in line with FY 2024 guidance"

Product mix change has positive effect on EBITDApre margin

Sales (in mEUR)

EBITDApre (in mEUR)

Sales split (in \%)

Key developments

• Ongoing strong performance in PT; GS flat; weakness in CF continues, CS burdened from project termination
• Product mix changes lead to EBITDApre margin increase from $15.8 \%$ to $16.3 \%$ in nine months comparison

Graphite Solutions (GS) - improved profitability, but demand in most market segments weakened

Sales (in mEUR)

9M 2024
EBITDApre (in mEUR)

9M 2024

Key developments

Sales

• Semiconductor \& LED (+4\% yoy) and Automotive (+3\% yoy) showing growth; SiC semiconductor sales in Q3 2024 declined
• Other market segments burdened by macro economic weakness and limit BU GS growth
• Customer down payments of 31 mEUR in 9M 2024 to expand production capacities

EBITDApre

• Positive effects due to product mix and lower input costs
• EBITDApre margin increased from $23.8 \%$ to $25.3 \%$

Process Technology (PT) - topping good figures from 2023

EBITDApre (in mEUR)

Key developments

Sales

• Good development from 2023 continues in 9M 2024
• Mainly Europe and Americas contribute
• Order book still well filled, but signs of slowdown in new orders

EBITDApre

• Stronger share of higher margin service business combined with attractive large-scale projects
• Margin increase in 9M 2024 to 24.1\% (9M 2023: 18.3\%)

Carbon Fibers (CF) - the perfect storm continues

Sales (in mEUR)

9M 2024
8M 2023

EBITDApre (in mEUR)

$-7.9$

Key developments

Sales

• Significant sales decrease in nearly all CF market segments due to demand weakness
• Negative price trend for commodity products

EBITDApre

• Positive effects from lower energy costs and restructuring measures overshadowed by missing fix cost absorption and lower prices
• Mainly BSCCB JV impact on CF EBITDApre of 11.6 mEUR in 9M 2024 (9M 2023: 14.1 mEUR)
• Due to updated market expectations impairment of 60 80 mEUR in Q4 2024

Composite Solutions (CS) - Termination of automotive contract impacting sales and earnings

Sales (in mEUR)

9M 2024
9M 2023

EBITDApre (in mEUR)

9M 2024

Key developments

Sales

• Termination of an automotive project contract resulted in lower volumes and sales
• Stable demand from luxury car segment for car body components

EBITDApre

• Lower EBITDApre due to lower sales, EBITDApre-margin declined to 11.2\% (9M 2023: 14.5\%)
• Main impact on EBITDApre from missing contribution of terminated automotive project contract

Another solid quarter

Key figures (in mEUR)

Free cash flow (FCF)
Net financial debt

Sep. 30, Dec. 31, 2024
2023

Key developments

• Strong increase in net result in 9M 2024, prior year affected by impairment in CF
• Net financial debt slight increase (6.9\%) leverage ratio of 0.7
• Equity ratio increased by 2.2 ppt to $43.3 \%$
• ROCE with $11.1 \%$ nearly unchanged (Dec. 31, 2023: 11.3\%)

2 Update SiC development and outlook

"EV market weakening"

Semiconductor demand slowing down in Q3 2024

Sales split GS by market segment in 9M 2024 versus 9M 2023 (in \%)
Sales split Semi/LED market segment
(in mEUR)

Lower than expected growth in EVs slows SiC-semi demand

Electric vehicles sold per quarter

Current obstacles

• EV represents the #1 application (70-80\% share in SiC)
• Q1 2024: slowed growth in EV demand by end-customers after very strong Q4 2023
• Q2 2024: recovery in demand mainly driven by China (+35.4\%), Europe ( $+7.4 \%$ )
• Q3 2024: recovery, driven by China (+32.8\%), Europe (+2.0\%)
• Adoption rate of SiC lower than expected

Delay in EV and SiC market affects SGL business

Market development

• Slowing market growth due to weaker BEV demand, but still expected to grow at $24 \% \mathrm{CAGR}_{23-29}$
• Customers: Focus shifted from growth to inventory \& cash management
• All regions affected
• No growth in SiC demand expected for 2025

SGL

• Temporary slowdown at our SiC customers
• SGL strong positioned
• Quality leader
• "One-Stop-Shop" semi-customers
• Support of local markets due to site network
• Structure of SiC customer contracts
• Strict cost management
• Opportunity: Acceleration SiC penetration in other markets (e.g. air cons)

Guidance on lower end of EBITDApre range confirmed

sgl carbon

Q\&A

We are looking forward to your questions

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Financial calendar and IR contact details

Financial calendar

March 20, 2025

• Publication of the Annual Report 2024
• Conference call for investors and analysts

May 8, 2025

• Statement on the First Quarter 2025
• Conference call for analysts and investors

May 21, 2025

• Annual General Meeting (virtual)

August 7, 2025

• Report on the First Half Year 2025
• Conference call for investors and analysts

November 6, 2025

• Statement on the First Nine Months 2025
• Conference call for investors and analysts

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

SGL Carbon to report EBIT / EBITDApre (exceptionals)

Definition of exceptionals (for 2024/2023)

• 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

sgl carbon

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 no historical facts, but rather 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.