SGL CARBON SE

Quarterly Report • May 7, 2019

Report on the first quarter

Summary

2

Group sales increased by nearly 10% to Ŷ289 million in the first quarter 2019 compared to the prior year quarter driven by organic growth in the market segments Digitization, Energy, Chemicals and Industrial Applications

Adjusted for the positive one-time effect of Ŷ4 million from a land sale in the prior year, Group recurring EBIT increased by Ŷ2 million to almost Ŷ19 million

As announced in March 2019, CFM continued the weak development from Q4/2018 with a break-even EBIT while GMS recorded a record result – in summary Group EBIT in Q1/2019 came in slightly higher than forecasted

Guidance for the full year 2019 confirms the outlook presented in the Annual Report 2018

Refinancing measures completed with the successful placement of a Ŷ250 million corporate bond in April 2019 as well as the Ŷ175 million syndicated loan signed in January 2019

Financial highlights

		1st Quarter
Ŷ million	2019	2018	Change
Sales revenue	ƈƎƎƎ	ƈƌƉƊ	Əƌ
EBITDA before non-recurring items	ƉƌƉ	ƉƌƇ	Ɛƌ
Operating profit (EBIT) before non-recurring items (recurring EBIT)	ƇƎƍ	ƈƐƋ	–ƎƎ
Return on sales (EBIT-margin) 1)	ƌƋ	ƍƎ	-
2) Return on capital employed (ROCE EBIT)	ƋƐ	Ƌƈ	-
Operating profit	ƇƌƉ	Ɗƍƈ	–ƌƋƋ
Result from discontinued operations, net of income taxes	ƐƐ	–Ɗƈ	ƇƐƐƐ
Consolidated net result (attributable to shareholders of the parent company)	ƎƏ	Ɖƈƈ	–ƍƈƊ

Ŷ million	31. Mar. 19	31. Dec. 18	Change
Total assets	ƇƌƈƇƍ	ƇƋƎƋƇ	ƈƉ
Equity attributable to the shareholders of the parent company	ƋƉƊƊ	ƋƉƇƌ	ƐƋ
Net financial debt 3)	ƈƌƉƌ	ƈƊƈƈ	ƎƎ
Gearing 4)	ƐƊƏ	ƐƊƌ	-
Equity ratio 5)	ƉƉƐ	ƉƉƋ	-

1) Ratio of EBIT before non-recurring items to sales revenue

2) EBIT before non-recurring items for the last twelve months to average capital employed - continuing operations (total of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity and working capital)

3) Financial liabilities (nominal amounts) less liquidity

4) Net financial debt divided by equity attributable to the shareholders of the parent company

5) Equity attributable to the shareholders of the parent company divided by total assets

Content

News 4
Interim Group Management Report 6
Economic environment 6
Key events of the business development 6
Business development 7
Opportunities and Risks 12
Outlook 13
Condensed Consolidated Financial Statements 16
Consolidated Income Statement 16
Consolidated Statement of Comprehensive Income 17
Consolidated Balance Sheet 18
Consolidated Cash Flow Statement 20

Condensed Consolidated Statement of Changes in Equity 22
Notes to the Condensed Consolidated Interim Financial
Statements 23
Responsibility statement 31
Other information 32
Financial Calendar 2019 34
Investor Relations Contact 34

News

4

SGL Carbon

March 2019

The Supervisory Board of SGL Carbon SE has extended the contract of the Chief Executive Officer Dr. Jürgen Köhler (58) for another term of three years until December 31, 2022 at its meeting on March 26, 2019. The Supervisory Board thus sends a message of continuity.

Dr. Jürgen Köhler has been a member of the Board of Management of SGL Carbon SE since June 1, 2013 and has been CEO of SGL Carbon SE since January 1, 2014.

April 2019

On April 10, 2019 we successfully placed a corporate bond in the amount of Ŷ250 million with a coupon of 4,625% and a maturity until 2024 among institutional investors. The transaction generated very good demand and was several times oversubscribed. With this bond and the syndicated loan in the amount of Ŷ175 million signed in January 2019, we have completed our refinancing measures and are thus financed until 2023 with respect to our existing financial liabilities.

Reporting Segment Composites – Fibers & Materials (CFM)

January 2019

SGL Carbon and Airbus Helicopters agree on framework contract for more intensive collaboration. The helicopter manufacturer Airbus Helicopters Germany and SGL Carbon have been working together for years in the field of processing composite materials for aircraft doors of the Airbus Group. In future, the cooperation with Airbus will be extended and further intensified to applications for the helicopter sector for example for the supply of fiber based fabrics.

March 2019

At the JEC World in Paris, the worldwide largest trade fair for composites, SGL Carbon laid the focus on smart solutions for the automotive industry. Under the motto "The Weight and Performance Optimizers" SGL Carbon presented a wide range of tailored components and high-performance materials along the entire value chain. Examples include:

Carbon composite rear wall for a high-performance car of a major German automobile manufacturer.

• An innovative natural fiber door concept for a sportscar manufacturer. In concrete terms, the hybrid composite components consist of a combination of biology-based natural fibers and fossil-based carbon fibers as well as conventional plastics.
• Visible carbon components with a high degree of functional integration.
• Leaf spring based on fiberglass. The major advantages of the glass fiber reinforced plastic (GFRP) springs include a weight reduction up to 65 percent compared to standard steel springs, greater driving comfort and more interior space.
• Composite battery boxes for electric vehicles based on glass fiber and carbon fiber reinforced composite materials. With the so-called high-voltage battery housing, SGL presented a concept which enables a weight reduction of up to 50 percent compared to a steel component. It also meets highest standards in terms of fire resistance, rigidity, acoustics and both thermal and electromagnetic shielding.
• Windshield in efficient skeleton design composed from a combination of formable thermoplastic profiles and subsequent extrusion coating with thermoplastic short fiber granules into a complex skeletal structure.

March 2019

SGL Carbon and Onur Materials Services enter into supply contract and cooperation for high-performance insulation components for aero engines. In addition, Onur Materials Services will act as a sales partner for the distribution of additional blankets to other renowned airlines in various countries in the Middle East with a sales potential for several hundred additional blankets.

March 2019

The Fiber Placement Center (FPC) of SGL Carbon and Fraunhofer IGCV based at the SGL site in Meitingen (Germany) is constantly evolving. At this year's JEC World in Paris the Center's first anniversary as well as the acquisition of two new partners Cevotec and Coriolis Composites was recognized.

April 2019

The Chinese automotive manufacturer NIO in collaboration with SGL Carbon has developed battery enclosures made of carbon fiber reinfoced plastics (CFRP) for high-performance electric vehicles. Thanks to the use of CFRP, the battery enclosure is extremely lightweight, stable and safe. The entire battery enclosure, including the batteries, can be changed at swapping stations of NIO within just three minutes. NIO presented the swap concept at NIO Day in December 2017 for the first time and now demonstrated the actual system along with various technological innovations including the CFRP battery enclosure live at the 2019 Shanghai Auto Show.

Commercial battery enclosures for electric vehicles are mainly made of aluminum and steel. In comparison, the CFRP battery enclosure is around 40 percent lighter. Other benefits include the enclosures' stiffness and the approximately 200 times lower thermal conductivity of CFRP compared to aluminum, which better shields the battery from heat and cold. Plus, the composite also offers excellent values in terms of water and gas leakage tightness and corrosion resistance

SGL Carbon expects demand for lightweight solutions for battery enclosures in the automotive sector to grow rapidly in the next few years due to increasing electromobility. The company is already working with various partners to continue developing different battery enclosures made of composites with the aim of scaling them for electric vehicle batteries of all sizes and designs.

Reporting segment Corporate

April 2019

At this year's Hannover Messe trade show, the "world's leading industrial show," SGL Carbon's central research and development department showcased current development projects at the joint booth "Bayern Innovativ". SGL Carbon's motto is "innovation with carbon" and focused on three major areas: Additive manufacturing with carbon and silicon carbide, hybrid materials with carbon, and high-performance ceramics. Among others, showcased items include 3D-printed casting cores, pump housings and heat exchangers, a metal-CFRP structure, a test rocket nozzle infiltrated with silicon carbide, as well as innovative carbon fiber fabrics for reinforcing concrete with CFRP.

Interim Group Management Report

(unaudited)

6

Economic environment

In April 2019, the International Monetary Fund (IMF) lowered its forecast for global growth for this year by 0.2 percentage points to 3.3%, while leaving its forecast for 2020 unchanged at 3.6%.

For the Euro zone, the IMF is anticipating slightly lower growth for this and next year. Accordingly, growth is anticipated 0.3 percentage points lower at 1.3% for 2019 and 0.2 percentage points lower at 1.5% for 2020. Expectation for Germany are at 0.8% (minus 0.5 percentage points) for 2019 and 1.4% (minus 0.2 percentage points) for next year.

Despite the slightly reduced growth rates and the increased global economic risks, we confirm the statements made in the Annual Report 2018 with regards to our anticipated business development.

Key events of the business development

New senior secured notes

SGL Carbon SE has successfully placed Senior Secured Notes in the amount of Ŷ250 million with an interest rate of 4.625% due 2024 (the "Notes") in April 2019.

SGL Carbon will use the proceeds, together with cash on hand, to prefund its existing convertible bonds due 2020 (the "2020 Convertible Bonds"), to completely repay the loan related to the BMW Joint Venture and to pay related costs and expenses. SGL Carbon has deposited the aggregate amount of principal and interest that will be due under the 2020 Convertible Bonds until their maturity into an escrow account that will be pledged for the benefit of the holders of the 2020 Convertible Bonds to prefund this bond.

New IFRS 16 accounting standard

Effective January 1, 2019, SGL Carbon introduced the new accounting standard of IFRS 16 (Leases) and changed its accounting policies. In accordance with the transition method chosen by us in accordance with IFRS 16, there is no adjustment to prior periods. As a result, changes in net income, assets and liabilities, and cash flow will be affected by the new accounting policies in fiscal year 2019.

The following effects resulted from the first-time adoption of IFRS 16 as of January 1, 2019:

• Capitalization of rights of use increased property, plant and equipment of Ŷ36.7 million
• Financial liabilities increased by Ŷ36.6 million due to the recognition of leasing liabilities. Of this amount, Ŷ27.3 million related to long-term liabilities and Ŷ9.3 million to short-term liabilities.
• Shareholders equity increased by Ŷ0.1 million

In the first quarter of 2019, we recognized depreciation for rights of use assets in the amount of Ŷ2.2 million and imputed interest expenses for lease liabilities in the amount of Ŷ0.3 million in our consolidated income statement. IFRS 16 also affects the structure of the cash flow statement of SGL Carbon: Cash flow from operating activities and free cash flow increased by Ŷ2.1 million and cash flow from financing activities decreased by Ŷ2.1 million.

For further details to the transition effects in the opening balance sheet, please refer to the notes to the condensed consolidated interim financial statements.

Business development

Segment Reporting

Reporting segment Composites – Fibers & Materials (CFM)

	Change
	ƐƐ
	–ƊƏƍ
ƏƉ	–ƏƋƍ
	-
	-
	>–ƇƐƐ
	2018 ƇƇƋƐ ƇƍƏ ƎƇ ƋƐ ƉƌƐ

1) Non-recurring items of minus Ŷ2.4 million and Ŷ26.7 million in the first quarter 2019 and 2018, respectively

2) EBIT before non-recurring items for the last twelve months to average capital employed (total of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity and working capital)

As expected, sales in the first quarter 2019 in the reporting segment CFM at Ŷ115.0 million remained on the prior year level (currency adjusted: minus 2%). While the market segment Wind Energy recorded strong growth compared to the very weak prior year, the market segment Industrial Applications posted lower sales. In contrast, sales in the market segments Automotive, Aerospace and Textile Fibers remained approximately on the prior year level.

Following the complete acquisition of Benteler SGL at the end of 2017, Ceramic Brake Discs (Brembo SGL; development and production of carbon ceramic brake discs) remains as the only major investment accounted for At-Equity and is allocated to the market segment Automotive. In the first quarter 2019, sales of all At-Equity accounted investments at Ŷ60.6 million remained approximately on the prior year level (Q1/2018: Ŷ61.3 million, 100% values for companies) and is not included in our Group sales revenue.

Recurring EBIT in the first quarter 2019 as anticipated reflected the developments seen in the fourth quarter 2018 and again reached a break even result at Ŷ0.4 million. Accordingly, the EBIT margin in the business unit decreased to 0.3% after 8.1%. The main reason for this development was the significant price decrease in acrylonitrile, the raw material for the business in the market segment Textile Fibers. This led to a substantial reduction in our selling prices, while our inventory of raw materials was still valued at higher prices, leading to a temporary margin contraction, which slightly eased in March. Despite higher sales, the market segment Wind Energy also recorded declining earnings due to a temporary unfavorable product mix. In contrast, the earnings levels in the remaining market segments Automotive, Aerospace and Industrial Applications remained approximately on the prior year level.

After consideration of non-recurring items amounting to minus Ŷ2.4 million, EBIT in the first quarter 2019 decreased to minus Ŷ2.0 million (Q1/2018: Ŷ36.0 million). Non-recurring items in the prior year quarter included a positive effect from the full consolidation of the former Joint Ventures with the BMW Group (SGL ACF) resulting from the adjustment to the fair value of the proportionate shareholding as of the date of acquisition in the amount of Ŷ28.4 million as well as the depreciation from the purchase price allocation relating to the purchase of the remaining shareholding in SGL ACF. In contrast, non-recurring items in the reporting period only included the depreciation from the purchase price allocation.

Reporting segment Graphite Materials & Systems (GMS)

	1st Quarter
Ŷ million	2019	2018	Change
Sales revenue	ƇƌƊƈ	ƇƊƐƇ	Ƈƍƈ
EBITDA	Ɖƈƈ	ƈƈƋ	ƊƉƇ
Operating profit (EBIT)	ƈƋƏ	ƇƌƎ	ƋƊƈ
Return on sales (EBIT-margin)	ƇƋƎ	ƇƈƐ	-
Return on capital employed (ROCE EBIT) 1)	ƇƍƊ	ƇƉƊ	-

1) EBIT before non-recurring items for the last twelve months to average capital employed (total of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity and working capital)

Sales in the reporting segment GMS in the first quarter 2019 increased by 17% (currency adjusted: 14%) to Ŷ164.2 million. The main driver for this strong development was the market segments Semiconductor and LED, which increased their sales substantially more than 50%. The market segment Automotive & Transport also grew more than proportionately and increased its sales by more than 40%. Substantial growth was also recorded in the market segment Industrial Applications, while the market segment Chemicals posted slight growth. As expected, sales in the market segment Battery & other Energy remained on the prior year level while we again limited sales to below the prior year level in the market segment Solar to prioritize sales to the Semiconductor and LED industries.

In total, EBIT in the first quarter 2019 increased substantially more than proportionately by 54% to a record level of Ŷ25.9 million (Q1/2018: Ŷ16.8 million) which resulted in a significantly higher EBIT margin of 15.8% (Q1/2018: 12.0%) due to improved results in most market segments. Only the market segments Solar and Chemicals posted earnings on the prior year level. Despite higher sales, earnings in the market segment Automotive & Transport declined due to customary start up costs relating to new projects, which are expected to decline in the course of the year.

Reporting segment Corporate

8

	1st Quarter
Ŷ million	2019	2018	Change
Sales revenue	Əƌ	ƎƉ	ƇƋƍ
EBITDA	–ƊƏ	–ƊƉ	–ƇƊƐ
Operating profit/loss (EBIT)	–ƍƌ	–Ƌƌ	–ƉƋƍ
thereof Central Innovation	–Ƈƍ	–ƈƇ	ƇƏƐ

In the first quarter 2019, sales in the reporting segment Corporate increased by 16% (no currency effect) compared to the prior year quarter to Ŷ9.6 million (Q1/2018: Ŷ8.3 million) mainly due to substantially higher sales in the market segment Energy. This relates to sales of our central research & development department (Central Innovation) for fuel cell components.

Even though EBIT in the reporting segment Corporate at minus Ŷ7.6 million was below the prior year level (Q1/2018: minus Ŷ5.6 million), the prior year included a positive effect from a land sale in Canada in the amount of Ŷ3.9 million. Adjusted for this effect, EBIT in the reporting segment Corporate even improved due to lower costs relating to last year's implementation of the Operations Management System (OMS) as well as lower expenses of our central research and development activities. At minus Ŷ1.7 million, these were below the prior year level due to increased earnings contribution from the business with fuel cell components.

Group business development

Condensed Consolidated Income Statement

	1st Quarter
Ŷ million	2019	2018	Change
Sales revenue	ƈƎƎƎ	ƈƌƉƊ	Əƌ
Cost of sales	–ƈƈƌƋ	–ƈƇƐƐ	–ƍƏ
Gross profit	ƌƈƉ	ƋƉƊ	Ƈƌƍ
Selling, administrative and R&D
expenses	–ƊƎƍ	–ƊƊƍ	–ƎƏ
Other operating income/expenses	ƇƋ	ƍƍ	–ƎƐƋ
Result from investments
accounted for At-Equity	Ɖƌ	ƊƇ	–Ƈƈƈ
Operating profit (EBIT) before non
recurring items (recurring EBIT)	ƇƎƍ	ƈƐƋ	–ƎƎ
Non-recurring items	–ƈƊ	ƈƌƍ	>–ƇƐƐ
Operating profit (EBIT)	ƇƌƉ	Ɗƍƈ	–ƌƋƋ
EBITDA before non-recurring items	ƉƌƉ	ƉƌƇ	Ɛƌ

Sales revenue increased significantly by 10% (currency adjusted by 7%) to Ŷ288.8 million (Q1/2018: Ŷ263.4 million). The increase in sales revenue is primarily attributable to higher deliveries by GMS. The gross margin improved to 21.6% in the reporting period (Q1/2018: 20.3%) due to price increases and higher fixed cost absorption in the reporting segment GMS as well as cost savings. Accordingly, gross profit rose significantly to Ŷ62.3 million in the reporting period from Ŷ53.4 million in the prior year period. Selling, administrative, and R&D expenses increased by 9% to Ŷ48.7 million (Q1/2018: Ŷ44.7 million), at a slightly slower rate than sales revenue.

Although recurring EBIT in the period under review decreased by 9% to Ŷ18.7 million (Q1/2018: Ŷ20.5 million), the prior-year period included an income of Ŷ3.9 million from a land sale in the reporting segment Corporate. Adjusted for this effect, recurring EBIT improved by Ŷ2.1 million. This is attributable to the fact that the decline in earnings in the business unit CFM was more than offset by the significant improvements in operating earnings in the business unit GMS and in Corporate.

Non-recurring items of Ŷ2.4 million in the reporting period mainly include the additional amortization of identified assets and liabilities resulting from purchase price allocation (PPA) amounting to minus Ŷ2.6 million. In addition, further non-recurring items from a reduction of restructuring provisions in the amount of Ŷ 0.2 million were included. In the first quarter of the prior year, an adjustment to the fair value of the net assets of the previously proportionally consolidated joint operation with the BMW Group was required. This resulted in a positive impact on non-recurring earnings amounting to Ŷ28.4 million. As a result of this high positive non-recurring item in the previous year, EBIT after non-recurring items decreased from to Ŷ47.2 million in the first quarter of 2018 to Ŷ16.3 million in the reporting period.

Net financing result

		1st Quarter
Ŷ million	2019	2018	Change
Interest income	Ɛƌ	ƐƊ	ƋƐƐ
Interest expense	–Ɖƍ	–Ɖƍ	ƐƐ
Imputed interest convertible
bonds (non-cash)	–Ƈƌ	–ƇƊ	–ƇƊƉ
Imputed interest finance lease
(non-cash)	–ƐƏ	–Ɛƌ	–ƋƐƐ
Interest expense on pensions	–ƇƋ	–ƇƊ	–ƍƇ
Interest expense, net	–ƍƇ	–ƌƍ	–ƌƐ
Amortization of refinancing costs
(non-cash)	–ƐƊ	–ƐƊ	ƐƐ
Foreign currency valuation of
Group loans (non-cash)	ƇƇ	ƐƇ	!ƇƐƐ
Other financial income/expense	Ɛƈ	ƐƐ	-
Other financing result	ƐƏ	–ƐƉ	!ƇƐƐ
Net financing result	–ƌƈ	–ƍƐ	ƇƇƊ

After the repayment of the convertible bond 2012/2018 (interest rate of 2.75%) in January 2018, interest expense particularly related to the interest on the convertible bond 2015/2020 (interest rate of 3.5%), the convertible bond 2018/2023 (interest rate 3.0%) and the financial debt of SGL Composites due to BMW Group. The non-cash imputed interest on the convertible bond is recognized in order to adjust the coupon on the convertible bond to comparable interest rates at the time of its issuance.

As a result of the convertible bond issued in the third quarter of 2018 and the interest expense from IFRS 16 to be recognized for the first time in 2019 amounting to Ŷ0.3 million, net interest expense for the reporting period increased slightly from Ŷ6.7 million to Ŷ7.1 million. The other financing result, in particular from foreign currency valuation of intercompany loans, improved significantly year-on-year to Ŷ0.9 million (Q1/2018: minus Ŷ0.3 million). Because of this positive foreign currency effect, net financing result overall improved to Ŷ6.2 million (Q1/2018: Ŷ7.0 million).

Condensed Consolidated Income Statement (continued)

		1st Quarter
Ŷ million	2019	2018	Change
Operating profit (EBIT)	ƇƌƉ	Ɗƍƈ	–ƌƋƋ
Net financing result	–ƌƈ	–ƍƐ	ƇƇƊ
Result from continuing operations
before income taxes	ƇƐƇ	ƊƐƈ	–ƍƊƏ
Income tax expense	–ƇƇ	–ƉƎ	ƍƇƇ
Result from continuing operations	ƏƐ	ƉƌƊ	–ƍƋƉ
Result from discontinued
operations, net of income taxes	ƐƐ	–Ɗƈ	ƇƐƐƐ
Net result for the period	ƏƐ	Ɖƈƈ	–ƍƈƐ
Attributable to:
Non-controlling interests	ƐƇ	ƐƐ	-
Consolidated net result
(attributable to shareholders of
the parent company)	ƎƏ	Ɖƈƈ	–ƍƈƊ
Earnings per share - basic and
diluted (in Ŷ)	ƐƐƍ	Ɛƈƌ	–ƍƉƇ

Result from continuing operations

Mainly due to the non-recurrence of the positive nonrecurring item in the prior year as described above, the result from continuing operations before income taxes decreased from Ŷ40.2 million in the prior year period to Ŷ10.1 million in the reporting period. Income tax expense of Ŷ1.1 million (prior year period: Ŷ3.8 million) was characterized by current tax expenses on the positive earnings contributions of group companies.

Result from discontinued operations after taxes and net result for the period

The result from discontinued operations mainly includes income and expenses incurred by the former business units Performance Products (PP) and Aerostructures (AS). There was no impact on earnings in the reporting period. The expense in the prior year period was impacted by additional tax provisions related to the sale of PP.

Consolidated net result of the period amounted to Ŷ8.9 million compared to Ŷ32.2 million in the prior year period (after deduction of non-controlling interests of Ŷ0.1 million in the reporting period and Ŷ0.0 million in the first quarter 2018).

31. Mar. 19	31. Dec. 18	Change
ƎƎƐƊ	ƎƊƇƈ	Ɗƍ
ƍƊƇƉ	ƍƊƈƈ	–ƐƇ
-	Ƈƍ	-
ƇƌƈƇƍ	ƇƋƎƋƇ	ƈƉ
ƋƉƊƊ	ƋƉƇƌ	ƐƋ
ƇƐƉ	ƇƐƍ	–Ɖƍ
ƋƊƊƍ	ƋƊƈƉ	ƐƊ
ƎƉƉƊ	ƍƏƎƐ	ƊƊ
ƈƊƉƌ	ƈƊƊƉ	–ƐƉ
-	ƐƋ	-
ƇƌƈƇƍ	ƇƋƎƋƇ	ƈƉ

Balance sheet structure

Total assets as of March 31, 2019, increased by Ŷ36.6 million or 2.3% to Ŷ1,621.7 million compared to December 31, 2018. Non-current assets increased by Ŷ35.4 million at the end of the quarter as a result of the first time adoption of IFRS 16, which requires the capitalization of lease contracts. In contrast, current assets changed only slightly. The decrease in cash and cash equivalents of Ŷ19.2 million was compensated by the increase in trade receivables and contract assets of Ŷ19.7 million.

The increase in non-current liabilities is mainly attributable to the overall increase in pension provision by Ŷ17.1 million to Ŷ310.3 million. This increase is the result of the adjustment of the pension discount rates to the expected long-term interest environment in Germany and in the US by minus 0.3%-points to 1.6% and by 0.4%-points to 3.8%. In addition, a total of Ŷ15.7 million required by the new lease accounting in accordance with IFRS 16 is reported as non-current liabilities. The reduction in current liabilities is mainly due to the bonus payments made to employees in March 2019 and the reduction in trade payables by Ŷ4.6 million. In contrast, other current liabilities increased by Ŷ19.4 million, primarily due to current leasing liabilities recognized for the first time in accordance with IFRS 16.

Working Capital

Ŷ million	31. Mar. 19	31. Dec. 18	Change
Inventories	ƉƇƇƐ	ƉƇƐƊ	Ɛƈ
Trade accounts receivable and
contract assets	ƈƉƌƋ	ƈƇƌƎ	ƏƇ
Trade payables	–ƇƐƉƋ	–ƇƐƎƇ	ƊƉ
Working Capital	ƊƊƊƐ	ƊƇƏƇ	ƋƏ

Working capital increased by Ŷ24.9 million to Ŷ444.0 million as of March 31, 2019. The nominal increase was mainly due to the increase in trade receivables and contract assets under IFRS 15 of Ŷ15.9 million. The significant increase in trade receivables and contract assets resulted from the increased business volume in the reporting segment GMS. Assigned receivables to a financial institution from a factoring agreement in the amount of Ŷ22.2 million have limited the increase in trade receivables. Working capital increased in the first quarter of 2019 also as a result of the reduction in trade payables.

Changes in equity

As of March 31, 2019, equity attributable to the shareholders of the parent company increased to Ŷ534.4 million (December 31, 2018: Ŷ531.6 million). The increase is mainly attributable to the positive net result of the period amounting to Ŷ8.9 million. Negative effects from the adjustment of interest rates for pension provisions to the lower interest rate environment in Germany and the USA in the amount of minus Ŷ16.3 million were partially compensated by positive effects from foreign currency changes of Ŷ10.0 million. Overall, the equity ratio as of March 31, 2019 decreased slightly to 33.0% compared to 33.5% as of December 31, 2018, because of the increased total assets resulting from the adoption of IFRS 16.

Net financial debt

Ŷ million	31. Mar. 19	31. Dec. 18	Change
Carrying amount of current and non-current financial
liabilities	ƉƏƏƏ	ƉƏƎƎ	ƐƉ
Remaining imputed interest
for the convertible bonds	ƇƏƉ	ƈƐƎ	–ƍƈ
Accrued refinancing cost	ƋƎ	Ɗƈ	ƉƎƇ
Total financial debt (nominal
amount)	ƊƈƋƐ	ƊƈƉƎ	ƐƉ
Liquidity - continuing
operations	ƇƌƇƊ	ƇƎƐƌ	–ƇƐƌ
Liquidity - discontinued
operations	ƐƐ	ƇƐ	–ƇƐƐƐ
Total liquidity (continuing and
discontinued)	ƇƌƇƊ	ƇƎƇƌ	–ƇƇƇ
Net financial debt - continuing
and discontinued operations	ƈƌƉƌ	ƈƊƈƈ	ƎƎ
thereof: SGL Composites (formerly SGL ACF)
Non-current financial
liabilities	ƎƎƇ	ƎƌƊ	ƈƐ
Cash and cash equivalents	ƇƎ	ƇƋ	ƈƐƐ
Net financial debt SGL
Composites	ƎƌƉ	ƎƊƏ	Ƈƌ
Net financial debt excluding SGL
Composites (formerly SGL ACF)	ƇƍƍƉ	ƇƋƍƉ	Ƈƈƍ

The financial debt mainly include both convertible bonds, the financial debt of SGL Composites due to BMW, the netted amounts of the remaining imputed interest components as well as the refinancing costs.

As of March 31, 2019, net financial debt increased by Ŷ21.4 million to Ŷ263.6 million. This development is primarily attributable a payment of Ŷ10.5 million relating to a settlement with the purchaser of the Aerostructures business, within the scope of discontinued operations. On the other hand, the negative free cash flow from continuing operations of minus Ŷ3.7 million had only a minor effect on the increase in net financial debt.

Free cash flow

		1st Quarter
Ŷ million	2019	2018
Cash flow from operating activities
Result from continuing operations before
income taxes	ƇƐƇ	ƊƐƈ
Income from business combination
achieved in stages	-	–ƈƎƊ
Depreciation/amortization expense	ƈƐƊ	ƇƎƉ
Changes in working capital	–ƇƋƉ	–ƈƏƊ
Miscellaneous items	–ƇƇƇ	–ƇƌƐ
Cash flow from operating activities - continuing
operations	ƊƇ	–ƇƋƉ
Cash flow from operating activities -
discontinued operations	ƐƐ	ƐƐ
Cash flow from operating activities - continuing
and discontinued operations	ƊƇ	–ƇƋƉ
Cash flow from investing activities
Payments to purchase intangible assets
and property, plant & equipment	–ƇƋƊ	–Ǝƈ
Proceeds from the sale of intangible
assets and property, plant & equipment	ƇƐ	ƉƏ
Payments for the acquisition of
subsidiaries, net of cash acquired	-	–ƈƉƇ
Dividend payments from investments
accounted for At-Equity	ƌƐ	-
Payments received for divestitures	Ɛƌ	ƈƊ
Cash flow from investing activities - continuing
operations	–ƍƎ	–ƈƋƐ
Cash flow from investing activities -
discontinued operations	–ƇƐƋ	ƌƈƌ
Cash flow from investing activities - continuing
and discontinued operations	–ƇƎƉ	Ɖƍƌ
Free cash flow 1) - continuing operations	–Ɖƍ	–ƊƐƉ
Free cash flow 1) - discontinued operations	–ƇƐƋ	ƌƈƌ

1) Defined as cash flow from operating activities minus cash flow from investing activities

Cash flow from operating activities in the first quarter 2019 improved significantly by Ŷ19.4 million to Ŷ4.1 million, mainly due to the reduced increase in working capital. Cash flow from investing activities decreased from minus Ŷ25.0 million in the prior year period to minus Ŷ7.8 million, mainly because the net cash payment for the acquisition of the SGL Composites company in Wackersdorf (Germany) amounting to Ŷ23.1 million was included in the prior year period. The prior year period also included the net proceeds from the sale of SGL Kümpers amounting to Ŷ3.4 million and from a land sale in Lachute (Canada) in the amount of Ŷ3.9 million, whereas the reporting period included a dividend from our joint venture with Brembo amounting to Ŷ6.0 million. Capital expenditures in intangible assets and property plant and equipment in the reporting period increased significantly by 88% to Ŷ15.4 million (Q1/2018: Ŷ8.2 million).

As a result, free cash flow from continuing operations in the reporting period improved significantly to minus Ŷ3.7 million compared to the prior year period (Q1/2018: minus Ŷ40.3 million).

Free cash flow from discontinued operations decreased significantly to minus Ŷ10.5 million in the reporting period (Q1/2018: Ŷ62.6 million). The amount in the reporting period includes the payment for the final settlement regarding the sale of the Aerostructures business to Avcorp. The prior year period included the proceeds from the remaining purchase price from the sale of the former business unit PP amounting to Ŷ62.6 million.

Employees

The following tables provide information on the headcount development according to reporting segments and to geographic regions:

Headcount	31. Mar. 19	31. Dec. 18	Change
Composites - Fibers &			–Ɛƈ
			Ƈƌ
Corporate	ƉƐƎ	ƉƐƇ	ƈƉ
Total SGL Carbon	ƋƐƎƈ	ƋƐƉƇ	ƇƐ
Materials Graphite Materials & Systems	ƇƍƇƏ ƉƐƋƋ	Ƈƍƈƈ ƉƐƐƎ

Headcount	31. Mar. 19	31. Dec. 18	Change
Germany	ƈƈƏƏ	ƈƈƍƇ	Ƈƈ
Europe excluding Germany	ƇƊƋƋ	ƇƊƊƎ	ƐƋ
North America	ƎƊƇ	ƎƈƊ	ƈƇ
Asia	ƊƎƍ	ƊƎƎ	–Ɛƈ
Total SGL Carbon	ƋƐƎƈ	ƋƐƉƇ	ƇƐ

Opportunities and Risks

Regarding existing opportunities and risks, we refer to the detailed statements in the annual report for the financial year ended December 31, 2018. Opportunities and risks have not materially changed from the statements made in the annual report.

The future development of the global economy continues to be characterized by high risks. The IMF expects the global economy to cool down. A major risk for the European economy is the Brexit, which has been postponed until October 31, 2019 at the latest.

In the Composites - Fibers & Materials (CFM) reporting segment, opportunities and risks depend in particular on the development of sales volumes. Especially the business in the Textile Fibers market segment is increasingly affected by short-term price and volume fluctuations, which can have a negative impact on the result of operations.

In the Graphite Materials & Systems (GMS) reporting segment the medium opportunity and risk profile particularly in terms of price and volume developments continues. While on the one hand price risks are reduced after the planned price increases have been implemented, on the other hand uncertainties regarding sales volumes in the second half of the year increased in individual market segments due to the overall economic development.

The Ŷ250 million corporate bond successfully placed in April 2019 confirms the company's assessment that risks from its financial position can be regarded as low.

In summary, we currently do not see any substantial risks that have an impact on SGL Carbon as a whole. On the basis of the information currently available, it is our opinion that no individual material risks exist – neither presently nor in the foreseeable future – that could jeopardize the business as a going concern. Even if the individual risks are viewed on an aggregate basis, they do not threaten SGL Carbon as a going concern.

Outlook

We fully confirm the outlook as presented in the Annual Report 2018. The following statements summarize the detailed report in the Annual Report 2018.

Financial targets for the reporting segments

	KPI	Actuals 2018	Outlook 2019
			Mid-single digit percentage
CFM	Sales revenue	ƊƈƈƋ	increase Ƈ
	EBIT Ƈ)	ƈƐƎ	Close to prior year level
GMS	Sales revenue	ƋƎƏƏ	Close to prior year level
	EBIT Ƈ)	ƍƌƐ	Close to prior year level
Corporate	EBIT Ƈ)	–Ɖƈƈ	Close to prior year level

1) before non-recurring items

Reporting segment Composites – Fibers & Materials (CFM)

For the reporting segment CFM, we continue to expect a midsingle digit percentage sales growth, mainly driven by higher volume growth. Recurring EBIT in this business unit should approximately reach the prior year level despite the weak first quarter, as the high priced raw material inventory in the market segment Textile Fibers have been consumed in the first quarter and the lower raw material prices should benefit our business in the further course of the year. In addition, we anticipate higher project billing and an improved product mix in the following quarters.

Reporting segment Graphite Materials & Systems (GMS)

In the prior year, sales in the reporting segment GMS was substantially positively impacted by the initial adoption of IFRS 15. Against this background, for the fiscal year 2019, we continue to anticipate sales approximately on the same high level of the prior year. The same applies to the EBIT in the business unit GMS, which was also boosted by positive IFRS 15 effects. Despite the strong first quarter, we expect full year 2019 EBIT approximately on the same level as in the prior year, as we are planning somewhat lower volumes and higher costs in the coming quarters,

GMS should therefore once again exceed the target EBIT margin of 12% (before non-recurring items) and thus confirm that this business model is robust even in a weakening global economic environment.

Reporting segment Corporate

EBIT in the reporting segment Corporate in the fiscal year 2019 should be close to the prior year level, which was positively impacted by a one-time gain from a land sale amounting to approximately Ŷ4 million.

Group

Group financial targets

Ŷm	Actuals 2018	Outlook 2019
		Mid-single digit
Sales revenue	ƇƐƊƍƋ	percentage increase
EBIT 1)	ƌƊƌ	Close to prior year level
Return on capital employed (ROCE EBIT) 1)	ƋƊ	Close to prior year level
Consolidated net result -
continuing operations	ƋƐƉ	Balanced result

1) before non-recurring items

The fiscal year 2018 was impacted by positive effects from the initial adoption of IFRS 15 as well as positive nonrecurring items resulting from the full consolidation of the former SGL ACF. This high comparative base influences the outlook for the current year. In addition, we acknowledge reports on a global economic slowdown. Nevertheless, we continue to anticipate a mid-single digit percentage Group sales increase for 2019, which will mainly be volume driven. Group EBIT (before non-recurring items and purchase price allocation) is expected to stabilize on the prior year level, which recorded a substantial increase.

After a consolidated net profit of approximately Ŷ41 million in the fiscal year 2018, we expect a break even consolidated net result in the fiscal year 2019. It should, however, be noted, that the previous year benefited from a non-cash positive non-recurring item in the amount of Ŷ28 million relating to the full consolidation of SGL ACF. In addition, we plan increased expenses in the financial result mainly from the issue of the corporate bond in April 2019 to refinance maturities due at the end of 2020. With this bond and the Ŷ175 million syndicated loan signed in January 2019, we have completed our refinancing measures and are financed until 2023 with respect to existing financial liabilities.

For fiscal year 2019, we continue to expect capital expenditures of approximately Ŷ100 million after Ŷ78 million in the prior year.

Net financial debt at year-end 2019 is anticipated to be a mid double digit million Ŷ amount higher than at year end 2018 mainly due to higher capital expenditures as well as increasing interest expenses. We will, however, remain within our target leverage ratio (ratio of net financial debt to EBITDA) of below 2.5. As previously announced, the target gearing level of approximately 0.5 could temporarily be exceeded due to additional capital expenditures in the years 2019 through to 2021.

Wiesbaden, May 7, 2019

SGL Carbon SE The Board of Management

Condensed Consolidated Financial Statements

(unaudited)

Consolidated Income Statement

		1st Quarter
Ŷ million	2019	2018	Change
Sales revenue	ƈƎƎƎ	ƈƌƉƊ	Əƌ
Cost of sales	–ƈƈƏƇ	–ƈƇƐƐ	–ƏƇ
Gross profit	ƋƏƍ	ƋƉƊ	ƇƇƎ
Selling expenses	–ƈƌƍ	–ƈƊƍ	–ƎƇ
Research and development costs	–ƏƎ	–ƍƌ	–ƈƎƏ
General and administrative expenses	–Ƈƈƈ	–ƇƈƊ	Ƈƌ
Other operating income	ƉƉ	ƉƋƈ	–ƏƐƌ
Other operating expenses	–ƇƎ	–ƐƎ	>–ƇƐƐ
Result from investments accounted for At-Equity	Ɖƌ	ƊƇ	–Ƈƈƈ
Restructuring expenses	Ɛƈ	ƐƐ	-
Operating profit	ƇƌƉ	Ɗƍƈ	–ƌƋƋ
Interest income	Ɛƌ	ƐƊ	ƋƐƐ
Interest expense	–ƍƍ	–ƍƇ	–ƎƋ
Other financing result	ƐƏ	–ƐƉ	!ƇƐƐ
Result from continuing operations before income taxes	ƇƐƇ	ƊƐƈ	–ƍƊƏ
Income tax expense	–ƇƇ	–ƉƎ	ƍƇƇ
Result from continuing operations	ƏƐ	ƉƌƊ	–ƍƋƉ
Result from discontinued operations, net of income taxes	ƐƐ	–Ɗƈ	–ƇƐƐƐ
Net result for the period	ƏƐ	Ɖƈƈ	–ƍƈƐ
Thereof attributable to:
Non-controlling interests	ƐƇ	ƐƐ	-
Consolidated net result (attributable to shareholders of the parent company)	ƎƏ	Ɖƈƈ	–ƍƈƊ
Earnings per share, basic and diluted, (in Ŷ)	ƐƐƍ	Ɛƈƌ	–ƍƉƇ
Earnings per share - continuing operations, basic (in Ŷ)	ƐƐƍ	ƐƉƐ	–ƍƌƍ
Earnings per share - continuing operations, diluted (in Ŷ)	ƐƐƍ	ƐƈƏ	–ƍƋƏ

Consolidated Statement of Comprehensive Income

		1st Quarter
Ŷ million	2019	2018
Net result for the period	ƏƐ	Ɖƈƈ
Items that may be reclassified subsequently to profit orloss
Cash flow hedges 1)	ƐƇ	–Ɛƌ
Currency translation	ƇƐƐ	–ƊƊ
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/losses on pensions and similar obligations 2)	–ƇƌƉ	ƐƇ
Other comprehensive income	–ƌƈ	–ƊƏ
Comprehensive income	ƈƎ	ƈƍƉ
Thereof attributable to:
Non-controlling interests	ƐƇ	ƐƇ
Consolidated net result (attributable to shareholders of the parent company)	ƈƍ	ƈƍƈ

1) Includes tax effects of Ŷ0.0 million (2018: Ŷ0.0 million) in the first quarter 2) Includes tax effects of Ŷ0.0 million (2018: Ŷ0.1 million) in the first quarter

Consolidated Balance Sheet

ASSETS Ŷm	31. Mar. 19	31. Dec. 18	Change
Non-current assets
Goodwill	ƊƇƍ	ƊƇƉ	ƇƐ
Other intangible assets	ƋƉƍ	ƋƌƋ	–ƋƐ
Property, plant and equipment	ƍƇƎƇ	ƌƍƋƋ	ƌƉ
Investments accounted for At-Equity	ƋƐƐ	ƋƈƉ	–ƊƊ
Other non-currents assets	ƊƏ	ƊƉ	ƇƊƐ
Deferred tax assets	ƇƈƐ	ƇƇƉ	ƌƈ
	ƎƎƐƊ	ƎƊƇƈ	Ɗƍ
Current assets
Inventories	ƉƇƇƐ	ƉƇƐƊ	Ɛƈ
Trade receivables and contract assets	ƈƉƌƋ	ƈƇƌƎ	ƏƇ
Other financial assets	ƈƐ	ƉƐ	–ƉƉƉ
Other receivables and other assets	ƉƐƊ	ƉƇƊ	–Ɖƈ
Liquidity	ƇƌƇƊ	ƇƎƐƌ	–ƇƐƌ
Time deposits	ƉƏ	ƋƎƇ	–ƏƉƉ
Cash and cash equivalents	ƇƋƍƋ	ƇƈƈƋ	ƈƎƌ
	ƍƊƇƉ	ƍƊƈƈ	–ƐƇ
Assets held for sale	-	Ƈƍ	-

Total assets ƇƌƈƇƍ ƇƋƎƋƇ ƈƉ

EQUITY AND LIABILITIES Ŷm	31. Mar. 19	31. Dec. 18	Change
Equity
Issued capital	ƉƇƉƈ	ƉƇƉƈ	ƐƐ
Capital reserves	ƇƐƊƌƌ	ƇƐƊƌƌ	ƐƐ
Accumulated losses	–ƎƈƋƊ	–ƎƈƎƈ	ƐƉ
Equity attributable to the shareholders of the parent company	ƋƉƊƊ	ƋƉƇƌ	ƐƋ
Non-controlling interests	ƇƐƉ	ƇƐƍ	–Ɖƍ
Total equity	ƋƊƊƍ	ƋƊƈƉ	ƐƊ
Non-current liabilities
Provisions for pensions and similar employee benefits	ƉƇƐƉ	ƈƏƉƈ	ƋƎ
Other provisions	ƉƌƋ	ƉƌƉ	Ɛƌ
Interest-bearing loans	ƉƏƍƎ	ƉƏƌƋ	ƐƉ
Other financial liabilities	ƎƊƍ	ƌƍƏ	ƈƊƍ
Deferred tax liabilities	ƊƇ	ƊƇ	ƐƐ
	ƎƉƉƊ	ƍƏƎƐ	ƊƊ
Current liabilities
Other provisions	ƍƏƋ	ƏƇƇ	–Ƈƈƍ
Current portion of interest-bearing loans	ƈƇ	ƈƈ	–ƊƋ
Trade payables	ƇƐƉƋ	ƇƐƎƇ	–ƊƉ
Other financial liabilities	ƈƌƇ	ƇƎƎ	ƉƎƎ
Other liabilities	ƉƈƊ	ƈƊƇ	ƉƊƊ
	ƈƊƉƌ	ƈƊƊƉ	–ƐƉ
Liabilities in connection with assets held for sale	-	ƐƋ	-
Total equity and liabilities	ƇƌƈƇƍ	ƇƋƎƋƇ	ƈƉ

Consolidated Cash Flow Statement

	1st Quarter
Ŷ million	2019	2018
Cash flow from operating activities
Result from continuing operations before income taxes	ƇƐƇ	ƊƐƈ
Adjustments to reconcile the result from continuing operations to cash flow from operating activities:
Interest expense (net)	ƍƇ	ƌƍ
Change in value of contract assets (IFRS 15)	–ƊƎ	–Ƌƌ
Result from the disposal of property, plant and equipment	–Ɛƈ	–Ɗƈ
Depreciation/amortization expense	ƈƐƊ	ƇƎƉ
Income from business combination achieved in stages	-	–ƈƎƊ
Result from investments accounted for At-Equity	–Ɖƌ	–ƊƇ
Amortization of refinancing costs	ƐƊ	ƐƊ
Interest received	ƇƐ	ƐƊ
Interest paid	–ƊƇ	–Ɗƍ
Income taxes paid	–ƐƋ	–ƐƏ
Changes in provisions, net	–ƇƊƐ	–ƇƉƉ
Changes in working capital
Inventories	–ƍƏ	–ƇƐƍ
Trade receivables and contract assets	–Ƈƍ	–ƈƋƈ
Trade payables	–Ƌƍ	ƌƋ
Changes in other operating assets/liabilities	ƍƌ	ƏƉ
Cash flow from operating activities - continuing operations	ƊƇ	–ƇƋƉ
Cash flow from operating activities - discontinued operations	ƐƐ	ƐƐ
Cash flow from operating activities - continuing and discontinued operations	ƊƇ	–ƇƋƉ

	1st Quarter
Ŷ million	2019	2018
Cash flow from investing activities
Payments to purchase intangible assets and property, plant & equipment	–ƇƋƊ	–Ǝƈ
Proceeds from the sale of intangible assets and property, plant & equipment	ƇƐ	ƉƏ
Dividend payments from investments accounted for At-Equity	ƌƐ	-
Payments for the acquisition of subsidiaries, net of cash acquired	-	–ƈƉƇ
Payments received for divestitures	Ɛƌ	ƈƊ
Cash flow from investing activities - continuing operations	–ƍƎ	–ƈƋƐ
Changes in time deposits	ƋƊƈ	ƐƐ
Cash flow from investing and cash management activities - continuing operations	ƊƌƊ	–ƈƋƐ
Cash flow from investing activities and cash management activities - discontinued operations	–ƇƐƋ	ƌƈƌ
Cash flow from investing activities and cash management activities - continuing and discontinued operations	ƉƋƏ	Ɖƍƌ
Cash flow from financing activities
Repayment of financial liabilities	–ƐƋ	–ƈƉƏƍ
Payments in connection with financing activities	–ƉƐ	ƐƐ
Payments for the redemption portion of lease liabilities	–ƈƇ	-
Cash flow from financing activities - continuing operations	–Ƌƌ	–ƈƉƏƍ
Cash flow from financing activities - continuing and discontinued operations	–Ƌƌ	–ƈƉƏƍ
Effect of foreign exchange rate changes	Ɛƌ	ƐƐ
Net change in cash and cash equivalents	ƉƋƐ	–ƈƇƍƊ
Cash and cash equivalents at beginning of period	ƇƈƈƋ	ƉƎƈƏ
Cash and cash equivalents at end of period	ƇƋƍƋ	ƇƌƋƋ
Time deposits at end of period	ƉƏ	ƐƐ
Liquidity	ƇƌƇƊ	ƇƌƋƋ

Condensed Consolidated Statement of Changes in Equity

Ŷ million	Equity attributable to the shareholders of the parent company	1st Quarter 19 Non-controlling interests	Total equity
%DODQFH DW'HFHPEHU ƉƇ	ƋƉƇƌ	ƇƐƍ	ƋƊƈƉ
Cumulative adjustment on initial application of IFRS 16	ƐƇ	ƐƐ	ƐƇ
%DODQFH DW -DQXDU\Ƈ	ƋƉƇƍ	ƇƐƍ	ƋƊƈƊ
Net result for the period	ƎƏ	ƐƇ	ƏƐ
Other comprehensive income	–ƌƈ	ƐƐ	–ƌƈ
Comprehensive income	ƈƍ	ƐƇ	ƈƎ
Other changes in equity 1)	ƐƐ	–ƐƋ	–ƐƋ
%DODQFH DW0DUFK ƉƇ	ƋƉƊƊ	ƇƐƉ	ƋƊƊƍ

		1st Quarter 18
Ŷ million	Equity attributable to the shareholders of the parent company	Non-controlling interests	Total equity
%DODQFH DW'HFHPEHU ƉƇ	ƊƋƍƐ	ƇƇƉ	ƊƌƎƉ
Cumulative adjustment on initial application of IFRS 15 and IFRS 9 (net of
income taxes)	ƇƉƎ	ƐƐ	ƇƉƎ
%DODQFH DW -DQXDU\Ƈ	ƊƍƐƎ	ƇƇƉ	ƊƎƈƇ
Net result for the period	Ɖƈƈ	ƐƐ	Ɖƈƈ
Other comprehensive income	–ƋƐ	ƐƇ	–ƊƏ
Comprehensive income	ƈƍƈ	ƐƇ	ƈƍƉ
%DODQFH DW0DUFK ƉƇ	ƊƏƎƐ	ƇƇƊ	ƋƐƏƊ

Notes to the Condensed Consolidated Interim Financial Statements

Description of business

SGL Carbon SE, located at Söhnleinstrasse 8, Wiesbaden (Germany), together with its subsidiaries (the Company or SGL Carbon) is a global manufacturer of products and solutions based on carbon fibers and specialty graphites.

Basis of preparation

The condensed consolidated interim financial statements of SGL Carbon have been prepared in accordance with International Financial Reporting Standards (IFRS) applicable to interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and as adopted by the European Union (EU) and should be read in conjunction with the SGL Carbon Consolidated Financial Statements as of December 31, 2018. The condensed consolidated interim financial statements as of March 31, 2019, apply the same accounting principles and practices as well as the same estimates and assumptions as those used in the 2018 annual financial statements, except for the adoption of the new standard IFRS 16 Leases effective as of January 1, 2019.

These condensed consolidated interim financial statements contain all of the information that is required for a fair presentation of the results of operations and the financial position of the Company.

The condensed consolidated interim financial statements were authorized by the Board of Management on May 7, 2019. The condensed consolidated interim financial statements and interim group management report have not been audited, neither have they been subject to an auditor's review.

New accounting pronouncements with mandatory adoption as of January 1, 2019

IFRS 16 Leases

IFRS 16 provides that in general, all leases and the associated contractual rights and duties must be reflected in the lessee's balance sheet, unless the term does not exceed 12 months or it constitutes a low-value asset. The classification required under IAS 17 into operating or finance leases therefore does not apply to the lessee. As for leases, the lessee recognizes a liability for lease obligations incurred in the future. Correspondingly, a right to use the leased asset is capitalized, which in principle is equivalent to the present value of the future lease payments plus directly attributable costs and is amortized over the useful life.

SGL Carbon has applied IFRS 16 for the first time as of January 1, 2019, using the modified retrospective approach, i.e. the previous' year figures are not restated. The cumulative effects from the first-time application are recorded in retained earnings as of January 1, 2019.

First-time application within SGL Carbon to date has affected leases that previously had been classified as operating leases. Short-term leases with a term not exceeding 12 months (and no purchase option) as well as leases where the underlying asset is of minor value, were not accounted for according to the option under IFRS 16.5 and not under IFRS 16. In addition, SGL Carbon is using the option under IFRS 16.15 and recognizes all lease and non-lease components according to IFRS 16. Moreover, the Company has applied the relief provisions of IFRS 16.C3(b) when transitioning to IFRS 16, and has not reviewed contracts, which pursuant to IAS 17 "Leases" in conjunction with IFRIC 4 "Determining whether an Arrangement contains a Lease" are not classified as leases, based on the definition of a lease in IFRS 16.

For the first-time application of IFRS 16 on operating leases, the right to use the leased asset was in principle valued at the amount of the lease liability, using the interest rate at the time of the first-time application. The average interest rate as of January 1, 2019 was approx. 3.4%. For the valuation of the right of use at the time of first-time application, the initial direct costs were not taken into account. The following categories of leases were identified, where as a consequence of the change to IFRS 16 as of January 1, 2019, contracts that previously had been recognized as operating leases, now qualify as leases within the meaning of the new standard: buildings, plant and machinery and office equipment. The first-time application resulted in recording usage rights in the amount of Ŷ36.7 million and lease liabilities in the amount of Ŷ36.6 million in the Consolidated Balance Sheet as of and for the period ended January 1, 2019; the difference in the amount Ŷ0.1 million between the two balance sheet items relates to a liability in a lease contract that was already recognized prior to the implementation of IFRS 16.

The off-balance sheet obligations as of December 31, 2018 are reconciled as follows to the recognized lease liabilities as of January 1, 2019:

Ŷ million	Jan.1, 19
Transition lease liabilities
Off-balance sheet lease obligations as of December 31, 2018	ƊƊƈ
Relief option for short-term leases	–ƐƋ
Relief option for low value asset leases	–Ɛƍ
Other	ƐƐ
Operating lease obligations as of January 1, 2019 (gross, without discounting)	43.0
Operating lease obligations as of January 1, 2019 (net, discounted)	36.6
Present value of finance lease liabilities at January 1, 2019	ƇƌƏ
Total lease liabilities as of January 1, 2019	53.5

The quantitative impact of the first-time application of IFRS 16 on the consolidated balance sheet as of December 31, 2018 or January 1, 2019 is shown in the following table:

		IFRS 16 adjust
Ŷ million	Dec. 31, 18	ments	Netting	Jan.1, 19
Assets
Property, plant and equipment	ƌƍƋƋ	Ɖƌƍ		ƍƇƈƈ
Deferred tax assets	ƇƇƉ	ƇƐƉ	-ƇƐƉ	ƇƇƉ
Liabilities
Other financial liabilities	Ǝƌƍ	Ɖƌƌ		ƇƈƉƉ
thereof: non-current liabilities	ƌƍƏ	ƈƍƉ		ƏƋƈ
thereof: current liabilities	ƇƎƎ	ƏƉ		ƈƎƇ
Deferred tax liabilities	ƊƇ	ƇƐƉ	-ƇƐƉ	ƊƇ
Equity
Accumulated losses	–ƎƈƎƈ	ƐƇ		–ƎƈƎƇ
Equity ratio	ƉƉƋ			ƉƈƎ

The impact of the application of the new IFRS 16 on the consolidated interim income statement as of March 31, 2019 is illustrated below:

		1st Quarter 19
	Amounts without
	adoption of	IFRS 16
Ŷ million	IFRS 16	adjustments	As reported
Cost of sales	–ƈƈƏƉ	Ɛƈ	–ƈƈƏƇ
thereof: depreciation and amortization	–ƇƋƉ	-ƈƈ	–ƇƍƋ
Earnings before interest, taxes, depreciation and amortization (EBITDA) before non
recurring items	ƉƉƏ	ƈƊ	ƉƌƉ
Net financing result	–ƋƏ	–ƐƉ	–ƌƈ
Income tax expense	–ƇƇ	ƐƐ	–ƇƇ
Net result for the period	ƏƇ	–ƐƇ	ƏƐ
Other comprehensive income	–ƌƇ	–ƐƇ	–ƌƈ

IFRS 16 also affects the structure of the cash flow statement of SGL Carbon: Cash flow from operating activities and free cash flow increased by Ŷ2.1 million and cash flow from financing activities decreased by Ŷ2.1 million.

Other disclosures

Provisions for pensions and similar employee benefits

During the reporting period, SGL Carbon adjusted the pension discount rate in Germany and the US by 0.30%- and 0.40% points, respectively, as a consequence of decreased long-term interest rate levels. As of March 31, 2019, the discount rates are 1.60% in Germany (Dec 31, 2018: 1.90%) and 3.80% in USA (Dec 31, 2018: 4.20%). The discount rate adjustment resulted in actuarial losses of Ŷ16.3 million (without tax effect) which have been included in other comprehensive income, thereby decreasing equity by Ŷ16.3 million.

Investments accounted for At-Equity

The main joint venture accounted for At-Equity is Brembo SGL Carbon Ceramic Brakes S.p.A (Ceramic Brake Discs), Stezzano, Italy (BSCCB), which is operated together with Brembo and produces and further develops carbon ceramic brake discs. The table below provides the result of operations and the financial position of BSCCB, as reported in its financial statements (taking into account IFRS 15 effects).

	1st Quarter
Ŷ million	2019	2018
Ownership interest	ƋƐ	ƋƐ
Income statement
Sales revenue (100%)	ƊƋƐ	ƊƌƐ
Operating profit	ƇƇƎ	ƇƉƇ
Net financing result	ƐƇ	ƐƐ
Net result for the period (100%)	ƌƌ	ƎƊ
Share of SGL Carbon in the net result for the
period (50%)	ƉƉ	Ɗƈ
Balance Sheet	31. Mar. 19	31. Dec. 18
Non-current assets	ƌƌƋ	ƊƏƌ
Current assets	ƌƌƇ	ƍƇƉ
Thereof cash and cash equivalents	ƇƈƋ	ƇƈƋ
Non-current liabilities	ƈƉƍ	Ǝƍ
Thereof financial liabilities	ƇƊƉ	ƐƐ
Current liabilities	ƉƌƉ	ƉƊƇ
Thereof financial liabilities	ƈƇ	ƇƐ
1HWDVVHWV ƇƐƐ	ƍƈƌ	ƍƎƇ
Share of SGL Carbon in the net assets (50%)	ƉƌƉ	ƉƏƇ
Goodwill/customer base	Ɖƍ	Ɖƌ

The increase of non-current assets and non-current liabilities compared to December 31, 2018 is due to the adoption of IFRS 16.

The carrying amount of remaining investments accounted for At-Equity was Ŷ10.0 million (Dec. 31, 2018: Ŷ9.6 million) and their contribution to the result from investments accounted for At-Equity during the first quarter 2019 was Ŷ0.3 million (Q1/2018: minus Ŷ0.1 million).

Additional disclosures on financial instruments

The following table assigns the individual balance sheet items for the financial instruments to classes and measurement categories:

	Measurement	Carrying	Carrying
	category under	amount at	amount at
Ŷ million	IFRS 9	Mar. 31, 19	Dec. 31, 18
Financial assets
Cash and cash equivalents	Ƈ	ƇƋƍƋ	ƇƈƈƋ
Time deposits	Ƈ	ƉƏ	ƋƎƇ
Trade receivables and contract assets	Ƈ	ƈƉƌƋ	ƈƇƌƎ
Marketable securities and similar investments	ƈ	Ɗƌ	ƊƐ
Other financial assets	Ƈ	ƈƐ	ƉƐ
Derivative financial assets: Derivatives without a hedging relationship	Ɖ	ƐƇ	ƐƐ
Derivative financial assets: Derivatives with a hedging relationship	n.a.	ƐƇ	ƐƐ
Financial liabilities
Convertible bonds	Ɗ	ƉƐƍƐ	ƉƐƋƋ
Bank loans, overdrafts and other financial liabilities	Ɗ	ƏƎƍ	ƏƍƊ
Refinancing costs	Ɗ	–ƋƎ	–Ɗƈ
Finance lease liabilities	n.a.	ƋƈƐ	ƇƌƏ
Trade payables	Ɗ	ƇƐƉƋ	ƇƐƎƇ
Miscellaneous other financial liabilities	Ɗ	Ƌƍƍ	ƌƎƏ
Derivative financial liabilities: Derivatives without a hedging relationship	Ƌ	ƐƊ	Ɛƈ
Derivative financial liabilities: Derivatives with hedging relationship	n.a.	Ɛƍ	Ɛƍ
Thereof aggregated by measurement category in accordance with IFRS 9
1) Financial assets measured at amortized costs		ƊƐƐƐ	ƊƐƐƊ
2)Financial assets measured at fair value through profit and loss		Ɗƌ	ƊƐ
3)Other financial assets measured at fair value through profit and loss		ƐƇ	ƐƐ
4)Financial liabilities measured at amortized costs		ƋƌƇƇ	ƋƍƋƍ
5) Financial liabilities measured at fair value through profit and loss		ƐƊ	Ɛƈ

The following table shows the breakdown of the assets and liabilities measured at fair value into the three levels of fair value hierarchy in accordance with IFRS 13:

Ŷ million	Level1	Level2	Level3	Total
Marketable securities and similar
investments	Ɗƌ	-	-	Ɗƌ
Derivative financial
assets	-	Ɛƈ	-	Ɛƈ
Derivative financial liabilities	-	ƇƇ	-	ƇƇ

Ŷ million	Level1	Level2	Level3	Total
Marketable securities and similar
investments	ƊƐ	-	-	ƊƐ
Derivative financial
assets	-	ƐƐ	-	ƐƐ
Derivative financial
liabilities	-	ƐƏ	-	ƐƏ

The fair market value of the convertible bond 2015/2020 as of March 31, 2019, was Ŷ168.5 million (December 31, 2018: Ŷ165.2 million) and for the convertible bond 2018/2023 Ŷ149.4 million (December 31, 2018: Ŷ140.1 million). As the fair value is derived from quoted prices in active markets, these financial instruments are allocated to Level 1.

Receivables management

Factoring agreements concluded in the reporting period reduced the carrying amount of receivables. The volume of sales of receivables on the balance sheet date was Ŷ22.2 million (31. December 2018: Ŷ0.0 million).

Seasonality of operations

Customer order patterns within the segments CFM and GMS primarily follow overall global trends (e. g. for lightweight materials) and depend on the availability in connection with the pricing of such materials. The overall economic environment is usually a first indicator for any developments in the customers' demand. In addition, individual large projects can significantly impact the business development and overlap regular seasonality.

Other additional information

Issued capital remained unchanged to December 31, 2018 at Ŷ313.2 million as of March 31, 2019, and is divided into 122,341,478 no-par value ordinary bearer shares at Ŷ2.56 per share. During the first quarter 2019, no new shares were issued from the authorized capital. As of March 31, 2019, there were 1,872,492 SARs outstanding. SGL Carbon SE held a total of 70,501 of its own shares (treasury shares) as of March 31, 2019. Based on an average number of 122.3 million shares, basic earnings per share amounted to Ŷ0.07 (Q1/2018: Ŷ0.26).

The calculation of diluted earnings per share assumes the conversion of outstanding debt securities (convertible bonds) to shares or exercise of other contracts for the issue of common shares such as stock appreciation rights. The abovementioned financial instruments are included in the calculation of diluted earnings per share only if there is a mathematical dilutive effect during the reporting period concerned. Accordingly, EPS diluted is unchanged and amounts to Ŷ0.07 (Q1/2018: Ŷ0.26). EPS diluted (continuing operations) amounts to Ŷ0.07 (Q1/2018: Ŷ0.29).

Segment information

				Consolidation
Ŷ million	CFM	GMS	Corporate	adjustments	SGL Carbon
1st Quarter
External sales revenue	ƇƇƋƐ	ƇƌƊƈ	Əƌ	ƐƐ	ƈƎƎƎ
Intersegment sales revenue	Ɛƍ	ƐƐ	ƎƊ	–ƏƇ	ƐƐ
Total sales revenue	115.7	164.2	18	–9.1	288.8
Timing of revenue recognition
Products transferred at point in time	ƇƇƇƊ	ƇƋƇƏ	Əƌ	ƐƐ	ƈƍƈƏ
Products and services transferred over time	Ɖƌ	ƇƈƉ	ƐƐ	ƐƐ	ƇƋƏ
Total sales revenue	115.0	164.2	9.6	0.0	288.8
Sales revenue by customer industry
Mobility	ƌƋƉ	ƇƌƐ	ƈƐ	ƐƐ	ƎƉƉ
Energy	ƍƇ	ƉƎƌ	ƈƈ	ƐƐ	ƊƍƏ
Industrial Applications	ƇƎƉ	ƊƏƈ	ƋƊ	ƐƐ	ƍƈƏ
Chemicals	-	ƉƌƇ	-	ƐƐ	ƉƌƇ
Digitalization	-	ƈƊƉ	-	ƐƐ	ƈƊƉ
Textile Fibers	ƈƊƉ	-	-	ƐƐ	ƈƊƉ
Total sales revenue	115.0	164.2	9.6	0.0	288.8
Operating profit (EBIT) before non-recurring items (recurring EBIT)	ƐƊ	ƈƋƏ	–ƍƌ	ƐƐ	ƇƎƍ
Non-recurring items 1)	–ƈƊ	ƐƐ	ƐƐ	ƐƐ	–ƈƊ
Operating profit/loss (EBIT)	–ƈƐ	ƈƋƏ	–ƍƌ	ƐƐ	ƇƌƉ
Capital expenditures 2)	ƋƏ	ƍƊ	ƈƇ	ƐƐ	ƇƋƊ
Earnings before interest, taxes, depreciation and amortization (EBITDA)
before non-recurring items	ƏƐ	Ɖƈƈ	–ƊƏ	ƐƐ	ƉƌƉ
Amortization/depreciation on intangible assets and property, plant and
equipment before non-recurring items	Ǝƌ	ƌƉ	ƈƌ	ƐƐ	ƇƍƋ
Working Capital 3)	ƇƍƌƉ	ƈƏƈƐ	–ƈƊƉ	ƐƐ	ƊƊƊƐ
Capital employed 4)	ƌƍƉƐ	ƋƉƉƏ	ƇƐƐƈ	ƐƐ	ƇƉƐƍƇ

				Consolidation
Ŷ million	CFM	GMS	Corporate	adjustments	SGL Carbon
1st Quarter 18
External sales revenue	ƇƇƋƐ	ƇƊƐƇ	ƎƉ	ƐƐ	ƈƌƉƊ
Intersegment sales revenue	ƐƎ	ƐƐ	ƌƏ	–ƍƍ	ƐƐ
Total sales revenue	ƇƇƋƎ	ƇƊƐƇ	ƇƋƈ	–ƍƍ	ƈƌƉƊ
Timing of revenue recognition
Products transferred at point in time	ƇƇƉƍ	ƇƈƎƋ	ƎƉ	ƐƐ	ƈƋƐƋ
Products and services transferred over time	ƇƉ	ƇƇƌ	ƐƐ	ƐƐ	ƇƈƏ
Total sales revenue	115.0	140.1	8.3	0.0	263.4
Sales revenue by customer industry
Mobility	ƌƍƐ	ƇƇƇ	ƈƍ	ƐƐ	ƎƐƎ
Energy	ƈƊ	ƉƏƏ	Ɛƌ	ƐƐ	ƊƈƏ
Industrial Applications	ƈƇƎ	ƊƈƐ	ƋƐ	ƐƐ	ƌƎƎ
Chemicals	-	ƉƉƊ	-	ƐƐ	ƉƉƊ
Digitalization	-	ƇƉƍ	-	ƐƐ	ƇƉƍ
Textile Fibers	ƈƉƎ	-	-	ƐƐ	ƈƉƎ
Total sales revenue	115.0	140.1	8.3	0.0	263.4
Operating profit (EBIT) before non-recurring items (recurring EBIT)	ƏƉ	ƇƌƎ	–Ƌƌ	ƐƐ	ƈƐƋ
Non-recurring items 1)	ƈƌƍ	ƐƐ	ƐƐ	ƐƐ	ƈƌƍ
Operating profit/loss (EBIT) after non-recurring items	ƉƌƐ	ƇƌƎ	–Ƌƌ	ƐƐ	Ɗƍƈ
Capital expenditures 2)	ƇƏ	Ƌƌ	Ɛƍ	ƐƐ	Ǝƈ
Earnings before interest, taxes, depreciation and amortization (EBITDA)
before non-recurring items	ƇƍƏ	ƈƈƋ	–ƊƉ	ƐƐ	ƉƌƇ
Amortization/depreciation on intangible assets and property, plant and
equipment	–Ǝƌ	–Ƌƌ	–ƇƉ	ƐƐ	–ƇƋƋ
Working Capital (31.12.) 3)	ƇƋƎƋ	ƈƌƈƏ	–ƈƉ	ƐƐ	ƊƇƏƇ
Capital employed (31.12.) 4)	ƌƋƐƊ	ƊƏƎƈ	ƏƋƏ	ƐƐ	ƇƈƊƊƋ

1) Non-recurring items comprise the carryforward of hidden reserves realized as part of the purchase price allocation of the SGL-ACF and Benteler SGL totalling minus Ŷ2.6 million as well as release of restructuring provisions of Ŷ0.2 million (Q1/18: income from business combination achieved in stages (SGL ACF) of Ŷ28.4 million and the carrying forward of the purchase price allocation SGL ACF and Benteler of minus Ŷ1.7 million)

2) Defined as total of capital expenditure in other intangible assets and property, plant and equipment

3) Defined as sum of inventories, trade receivables and contract assets less trade payables

4) Defined as the sum of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity, and working capital

Sales revenue with one customer of the reporting segment CFM amount to approx. Ŷ33 million of total SGL Carbon sales revenues (Q1/18: Ŷ32 million).

Subsequent Events

On April 10, 2019, SGL Carbon SE placed EUR 250 million in aggregate principal amount of its 4.625% p.a. Senior Secured Notes due 2024 (the "Notes"). SGL Carbon will use the proceeds, together with cash on hand, to prefund its existing convertible bonds due 2020 (the "2020 Convertible Bonds"), for repayment of the existing SGL ACF loan related to the BMW Joint Venture, and to pay related costs and expenses. In connection with the prefunding of the 2020 Convertible Bonds, SGL Carbon has deposited a portion of the proceeds from the offering of the Notes, representing the aggregate amount of principal and interest that will be due under the 2020 Convertible Bonds until their maturity, into an escrow account that is pledged for the benefit of the holders of the 2020 Convertible Bonds.

Wiesbaden, May 7, 2019

SGL Carbon SE The Board of Management of SGL Carbon

Dr. Jürgen Köhler Dr. Michael Majerus

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Wiesbaden, May 7, 2019

SGL Carbon SE

The Board of Management

Other information

Sales Revenue and Operating Profit/Loss by Reporting Segment

		1st Quarter
Ŷ million	2019	2018	Change
Sales revenue
Composites - Fibers & Materials	ƇƇƋƐ	ƇƇƋƐ	ƐƐ
Graphite Materials & Systems	ƇƌƊƈ	ƇƊƐƇ	Ƈƍƈ
Corporate	Əƌ	ƎƉ	ƇƋƍ
SGL Carbon	ƈƎƎƎ	ƈƌƉƊ	Əƌ

	1st Quarter
Ŷ million	2019	2018	Change
EBIT before non-recurring items 1)
Composites - Fibers & Materials	ƐƊ	ƏƉ	–ƏƋƍ
Graphite Materials & Systems	ƈƋƏ	ƇƌƎ	ƋƊƈ
Corporate	–ƍƌ	–Ƌƌ	–ƉƋƍ
SGL Carbon	ƇƎƍ	ƈƐƋ	–ƎƎ

1) Non-recurring items of minus Ŷ2.4 million in the first quarter 2019 (Q1/2018: Ŷ26.7 million)

Quarterly Sales Revenue, Operating Profit/Loss (EBIT) and Return on Sales (based on EBIT before non-recurring items) by Reporting Segment

					2018	2019
Ŷ million	Q1	Q2	Q3	Q4	Full Year	Q1
Sales revenue
Composites - Fibers & Materials	ƇƇƋƐ	ƇƐƎƍ	ƇƐƐƈ	ƏƎƌ	ƊƈƈƋ	ƇƇƋƐ
Graphite Materials & Systems	ƇƊƐƇ	ƇƊƍƏ	ƇƊƎƎ	ƇƋƉƇ	ƋƎƏƏ	ƇƌƊƈ
Corporate	ƎƉ	ƏƉ	ƎƐ	ƏƋ	ƉƋƇ	Əƌ
SGL Carbon	ƈƌƉƊ	ƈƌƋƏ	ƈƋƍƐ	ƈƌƇƈ	ƇƐƊƍƋ	ƈƎƎƎ

					2018	2019
Ŷ million	Q1	Q2	Q3	Q4	Full Year	Q1
EBIT before non-recurring items 1)
Composites - Fibers & Materials	ƏƉ	ƎƐ	Ɖƌ	–ƐƇ	ƈƐƎ	ƐƊ
Graphite Materials & Systems	ƇƌƎ	ƈƉƈ	ƇƏƋ	ƇƌƋ	ƍƌƐ	ƈƋƏ
Corporate	–Ƌƌ	–ƍƋ	–ƎƇ	–ƇƇƐ	–Ɖƈƈ	–ƍƌ
SGL Carbon	ƈƐƋ	ƈƉƍ	ƇƋƐ	ƋƊ	ƌƊƌ	ƇƎƍ

					2018	2019
in %	Q1	Q2	Q3	Q4	Full Year	Q1
Return on sales (EBIT-margin) before non-recurring items 1)
Composites - Fibers & Materials	ƎƇ	ƍƊ	Ɖƌ	–ƐƇ	ƊƏ	ƐƉ
Graphite Materials & Systems	ƇƈƐ	ƇƋƍ	ƇƉƇ	ƇƐƎ	ƇƈƏ	ƇƋƎ
SGL Carbon	ƍƎ	ƎƏ	ƋƎ	ƈƇ	ƌƈ	ƌƋ

1) Non-recurring items of in total Ŷ16.3 million in 2018 and minus Ŷ2.4 million in the first quarter 2019

Quarterly Consolidated Income Statement

					2018	2019
Ŷ million	Q1	Q2	Q3	Q4	Full Year	Q1
Sales revenue	ƈƌƉƊ	ƈƌƋƏ	ƈƋƍƐ	ƈƌƇƈ	ƇƐƊƍƋ	ƈƎƎƎ
Cost of sales	–ƈƇƐƐ	–ƈƐƉƐ	–ƈƐƈƊ	–ƈƇƈƋ	–ƎƈƍƏ	–ƈƈƌƋ
Gross profit	ƋƉƊ	ƌƈƏ	ƋƊƌ	ƊƎƍ	ƈƇƏƌ	ƌƈƉ
Selling, administrative, R&D and other operating income/expense	–ƉƍƐ	–ƊƉƍ	–ƊƉƍ	–ƊƍƊ	–ƇƍƇƎ	–Ɗƍƈ
Result from investments accounted for At-Equity	ƊƇ	ƊƋ	ƊƇ	ƊƇ	ƇƌƎ	Ɖƌ
Operating profit (EBIT) before non-recurring items (recurring EBIT)	ƈƐƋ	ƈƉƍ	ƇƋƐ	ƋƊ	ƌƊƌ	ƇƎƍ
Restructuring expenses		ƇƏ	–ƇƇ	–Ƈƍ	–ƐƏ	Ɛƈ
Reversal of impairment losses/Effects from purchase price allocation	ƈƌƍ	–ƇƎ	–Ƌƈ	–ƈƋ	Ƈƍƈ	–ƈƌ
Operating profit/loss (EBIT)	Ɗƍƈ	ƈƉƎ	Ǝƍ	Ƈƈ	ƎƐƏ	ƇƌƉ
Net financing result	–ƍƐ	–ƌƍ	–ƍƌ	–ƎƉ	–ƈƏƌ	–ƌƈ
Result from continuing operations before income taxes	ƊƐƈ	ƇƍƇ	ƇƇ	–ƍƇ	ƋƇƉ	ƇƐƇ
Income tax expense	–ƉƎ	–ƇƏ	–Ɛƍ	ƋƎ	–Ɛƌ	–ƇƇ
Result from continuing operations	ƉƌƊ	ƇƋƈ	ƐƊ	–ƇƉ	ƋƐƍ	ƏƐ
Result from discontinued operations, net of income taxes	–Ɗƈ	Ɛƈ	ƐƐ	–ƋƐ	–ƏƐ	ƐƐ
Net result for the period	Ɖƈƈ	ƇƋƊ	ƐƊ	–ƌƉ	ƊƇƍ	ƏƐ
Thereof attributable to:
Non-controlling interests	ƐƐ	ƐƉ	ƐƐ	ƐƇ	ƐƊ	ƐƇ
Consolidated net result (attributable to shareholders of the parent
company)	Ɖƈƈ	ƇƋƇ	ƐƊ	–ƌƊ	ƊƇƉ	ƎƏ

Financial Calendar 2019

May 10, 2019

Annual General Meeting

August 6, 2019

• Report on the First Half Year 2019
• Conference call for investors and analysts

November 5, 2019

• Report on the Nine Months 2019
• Conference call for investors and analysts

Investor Relations Contact

SGL CARBON SE Head Office | Investor Relations Söhnleinstrasse 8 65201 Wiesbaden (Germany) Telephone: +49 611 6029-103 Telefax: +49 611 6029-101 E-Mail: Investor-Relations@sglcarbon.com www.sglcarbon.com Produced inhouse with firesys

Important Note

This interim report 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 Composites - Fibers & Materials and Graphite Materials & Systems 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 Composites - Fibers & Materials and Graphite Materials & Systems businesses, the impact of any manufacturing efficiencies and capacity constraints, widespread adoption of carbon fiber products and components in key end-markets of the SGL Carbon, including the automotive and aviation 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's 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.

SGL Carbon SE

Head Office | Investor Relations Söhnleinstrasse 8 65201 Wiesbaden/Germany Phone +49 611 6029-103 Fax +49 611 6029-101 investor-relations@sglcarbon.com www.sglcarbon.com