SGL CARBON SE

Quarterly Report • May 14, 2020

2020

Quarterly Statement as of March 31

Summary

2

First quarter 2020 on the whole not yet significantly impacted by Covid-19 impacts. Group sales revenue slightly above the guidance corridor of Ŷ220 to Ŷ240 million as published on March 12, 2020. Group recurring EBIT at the upper end of the guidance corridor of a mid to high single digit million Ŷ amount.

The outlook for the full year 2020 remains suspended, as already outlined in the ad-hoc notification of April 1, 2020, due to the uncertainties with regard to extent and duration of the impacts from the Covid-19 pandemic

Group sales revenue in the first quarter 2020 declined by approximately 15% to Ŷ247 million mainly due to changes in the lithium-ion battery supply chain in the business unit GMS as well as restructuring driven lower sales in Textile Fibers in the business unit CFM. Group recurring EBIT as planned approximately 50% below prior year level at Ŷ9 million

Due to timely implemented measures and in contrast to the usual seasonal pattern, liquidity of approximately Ŷ150 million as of March 31, 2020 developed very favorably compared to year-end 2019 (Ŷ137 million)

From today's perspective, a negative Group recurring EBIT is expected for the second quarter 2020 due to the global measures to limit the further spread of the pandemic, which led to material disruptions in production and supply chain in April and early May 2020

Financial Highlights

		1st Quarter
Ŷ million	2020	2019	Change
Sales revenue	ƈƊƌƎ	ƈƎƎƎ	–ƇƊƋ
EBITDA before non-recurring items	ƈƊƌ	ƉƌƉ	–Ɖƈƈ
Operating profit (EBIT) before non-recurring items (recurring EBIT)	ƏƐ	ƇƎƍ	–ƋƇƏ
Return on sales (EBIT-margin) 1)	Ɖƌ	ƌƋ	-
2) Return on capital employed (ROCE EBIT)	ƉƇ	ƋƐ	-
Operating profit	ƌƊ	ƇƌƉ	–ƌƐƍ
Consolidated net result (attributable to shareholders of the parent company)	–ƊƉ	ƎƏ	>-ƇƐƐ

Ŷ million	31. Mar. 20	31. Dec. 19	Change
Total assets	ƇƊƏƌƌ	ƇƋƐƊƎ	–ƐƋ
Equity attributable to the shareholders of the parent company	ƊƊƉƉ	ƊƇƎƌ	ƋƏ
Net financial debt 3)	ƈƎƇƋ	ƈƎƎƋ	–ƈƊ
Leverage ratio 4)	ƈƌƐ	ƈƊƐ	-
Equity ratio 5)	ƈƏƌ	ƈƍƎ	-

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 EBITDA before non-recurrring items of the last 12 months

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

Content

News from the Headquarters and the Businesses 4
Interim Group Management Report 5
Economic environment 5
Basis of preparation 5
Key events of the business development 5
Business development 6
Outlook 11
Consolidated Financial Statements 14
Consolidated Income Statement 14

Consolidated Income Statement 14
Consolidated Statement of Comprehensive Income 15
Consolidated Balance Sheet 16

Consolidated Cash Flow Statement 18
Condensed Consolidated Statement of Changes in Equity 20
Segment information 21
Other Information 23
Financial Calendar 2020 25
Investor Relations Contact 26

News from the Headquarters and the Businesses

SGL Carbon

4

February 2020

The supervisory board of SGL Carbon SE has appointed Dr. Torsten Derr as Chief Executive Officer of SGL Carbon SE for the duration of five years effective July 1, 2020. On April 28, 2020, we were also able to report that Dr. Derr will take up his position one month earlier, on June 1, 2020. Since 2016, Dr. Derr is holding the position of Managing Director of SALTIGO GmbH, Leverkusen, a subsidiary of LANXESS AG. Following his master degree and attainment of his PhD in chemistry at the University of Bremen, he began his professional career at Bayer AG in 1997 and at LANXESS AG in 2003.

March 2020

On March 17, 2020, the Board of Management of SGL Carbon SE decided not to hold the Annual General Meeting on April 22, 2020 as planned, but to postpone to a later date. The cancellation is due to the latest measures taken by the federal government, the federal states and municipalities in connection with the spread of the Covid-19 virus.

April/May 2020

In April, the Board of Management and the Supervisory Board decided in their respective meetings to hold this year's Annual General Meeting on June 16, 2020 as a virtual AGM. The agenda for the AGM was published on May 5, 2020 in the Federal Gazette (Bundesanzeiger).

Reporting segment Composites – Fibers & Materials (CFM)

January 2020

SGL Carbon received a substantial contract from a North American automaker for the series production of the top and bottom layers for battery enclosures made of carbon and glass fiber reinforced composites.

At the beginning of this year, SGL Carbon started serial production of landing gears made from braided carbon fiber material, which will be installed in around 500 flight taxis worldwide over the next two years. The carbon fibers for the component are produced at the SGL Carbon plant in Muir of Ord, Scotland. The final component is being manufactured at the Innkreis site in Austria.

April 2020

After prototypes for a Chinese automotive manufacturer, a major order from a North American automaker and yet another order from a European sports car manufacturer, SGL Carbon has now been nominated by BMW Group to serially produce a cover component for battery enclosures. This substantial multi-year order will include the production of an innovative glass-fiber-based cover plate for the battery housing. The component will be used in a future BMW Group plug-in hybrid model.

Reporting segment Graphite Materials & Systems (GMS)

January 2020

SGL Carbon invested a total of around Ŷ25 million over the past three years in the modernization and expansion of its production capacities for specialty graphite automotive components at the Bonn site, which was completed in January 2020. The expansion included the construction of a new, 2,000 m² hall for the production of the components. Due to its durability, high strength, low friction behavior and high conductivity, the material is suitable for many different automotive applications. Examples include rotors and vanes in vacuum pumps for brake boosters, bearings for exhaust gas management, and sealing rings and bearings for seals in coolant pumps.

February 2020

SGL Carbon reported on receiving the "Supplier of the Year 2019" award for excellence in quality management and contributions to strengthen the overall competitiveness of the Hyundai Motor Group related to the manufacturing and supply of fuel cell components. The award is granted by the Korean automaker once a year, evaluating several hundreds of suppliers from across the world in different categories. This year, only two non-Korean suppliers were been awarded.

Interim Group Management Report

Economic environment

In April 2020, the International Monetary Fund (IMF) drastically lowered the global growth forecast for the current year from plus 3.3% to minus 3.0%. The main reason for this is the impact from the Covid-19 pandemic. The IMF believes that it is very likely this year that the global economy will experience its worst recession since the Great Depression of the 1930s, surpassing even what was seen during the global financial crisis a decade ago.

In summary, the IMF anticipates a drastic decline in 2020, followed by stronger than originally expected growth in the following year. However, this is largely a result of the low base due to the recessive quarters in 2020. The IMF therefore expects global economic growth of 5.8% in 2021, 2.4 percentage points above the last forecast from January 2020, but based on a lower starting level. Overall, the IMF continues to see considerable uncertainty regarding the forecast, the pandemic itself, its macroeconomic impact and the associated pressures on the financial and commodity markets.

For the euro area, the IMF expects economic output to decline by 7.5% this year, followed by a recovery of 4.7% in 2021. Growth will be 8.8 percentage points lower in 2020 and 3 percentage points higher for 2021 than predicted in the IMF's January forecast. For Germany, minus 7.0% (minus 8.1 percentage points) is expected in 2020 and 5.2% (plus 3.8 percentage points) in the coming year.

This drastically reduced growth forecast for 2020 as well as the direct impact of the Covid-19 pandemic on our factories and the demand for our products prompted us in April to suspend our forecast published in the 2019 annual report until we have a better insight into the extent and duration of economic consequences.

Basis of preparation

The quarterly statement as of March 31, 2020 applies the same accounting principles and practices as those used in the 2019 annual financial statements.

Key events of the business development

Impacts and measures related to the Covid-19 pandemic

The Covid-19 pandemic affects the business operations of SGL Carbon. SGL Carbon has two clear priorities. Overriding target is to implement preventive measures to protect the health of our employees, their families and our business partners. In addition, it is our responsibility to manage our Company in the best way and as unscathed as possible through these difficult times. The implemented work and behavioral measures have contributed to the fact that only very few SGL Carbon employees have so far been positively tested for the new Corona virus.

SGL Carbon is globally active with 29 production sites. Some countries or regional authorities have implemented comprehensive restrictions such as lockdowns, which have had direct impact on our business operations. The GMS sites in China, India, Italy and Spain were temporarily affected by these restrictions, which have been lifted in the meantime and the sites have resumed operations. Due to temporary customer production stops, the CFM sites in Wackersdorf (Germany) and Austria have scaled back their production and introduced short time work. This also applied to the two production sites of the Brembo SGL joint venture. Thanks to the implemented measures, the remaining sites of SGL Carbon in Germany, USA, UK, France, Portugal and Poland were able to largely maintain production and delivery of products without interruption, albeit at different degrees of capacity utilization.

To counter the effects of the partially massive interruptions in the supply chain and their resulting lost work time, SGL Carbon is utilizing short time work as well as reduction of vacation and overtime at the sites and businesses that are particularly affected. Administrative employees and teams continue their activities largely from the home office. To enable this, we have multiplied the capacity of our IT networks.

Impairment test

The changed economic situation resulting from the measures taken by governments to stabilize the healthcare systems in light of the Covid-19 pandemic, has triggered SGL Carbon to review whether there are indicators for an impairment of property, plant and equipment, goodwill and other intangible assets (impairment test). In this respect, both external indicators (decreased market capitalization due to a fall in the stock market price) and internal indicators (temporary plant closures, reduced sales opportunities) were considered. Accordingly, an impairment test was carried out for all cashgenerating units. The forecast and cash flows for 2020 were updated using different calculation scenarios. Given that a reliable quantitative full-year forecast is currently not possible, planning scenarios were prepared for the purposes of the impairment test, and an expected value was derived, that most likely represents opportunities and risks. The impairment tests carried out on March 31, 2020 have not resulted in an impairment.

Business development

Segment reporting

Reporting segment Composites – Fibers & Materials (CFM)

	1st Quarter
Ŷ million	2020	2019	Change
Sales revenue	ƇƐƊƋ	ƇƇƋƐ	–ƏƇ
EBITDA before non-recurring items 1)	ƇƐƋ	ƏƐ	Ƈƌƍ
EBIT before non-recurring items
(recurring EBIT) 1)	Ɖƍ	ƐƊ	!ƇƐƐ
Return on sales (EBIT-margin) 1)	ƉƋ	ƐƉ	-
Return on capital employed (ROCE EBIT) 2)	–ƐƎ	ƇƎ	-
Operating profit/loss (EBIT)	ƇƇ	–ƈƐ	!ƇƐƐ

1) Non-recurring items of minus Ŷ2.6 million and minus Ŷ2.4 million in the first quarter 2020 and 2019, 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)

Due to its exposure to the market segments Automotive and Aerospace, which are more than proportionately negatively impacted by the Corona crisis, the reporting segment Composites – Fibers & Materials (CFM) is significantly affected by the recent developments in these customer industries. However, these developments have not yet materially impacted the first quarter. Sales revenues in the reporting segment CFM developed as expected in the first quarter 2020 at Ŷ104.5 million, a decline of 9% (currency adjusted: minus 10%) compared to the prior year level. The decline in sales was anticipated due to the restructuring driven lower sales revenues in the market segment Textile Fibers. Corona-related declining trends in the market segments Automotive and Aerospace were compensated by the higher than expected sales growth in Wind Energy. Sales in Industrial Applications were stable and thus also slightly better than planned.

Major investment accounted for At-Equity is the Ceramic Brake Discs business (Brembo SGL: development and production of carbon ceramic brake discs) which is allocated to the market segment Automotive and has two production sites in Meitingen (Germany) and Stezzano (Italy). Both sites had to stop production between end of March and end of April 2020, in Italy due to government regulations (lockdown) and in Germany due to production curtailments at important automotive customers. Accordingly, sales of all At-Equity accounted investments fell by approximately 23% to Ŷ46.9 million in the first quarter 2020 (Q1/2019: Ŷ60.6 million, 100% values for companies), This sales revenue is not included in Group consolidated sales revenues.

Recurring EBIT improved in the first quarter 2020 to Ŷ3.7 million compared to the break-even level of the prior year quarter, despite almost Ŷ3 million lower contribution from the At-Equity accounted investments. These were directly impacted by the production curtailments of European OEMs. The EBIT-margin in this business unit improved to 3.5% from 0.3%. Main drivers for this development were the earnings improvement measures implemented in the prior year, particularly the restructuring in Textile Fibers, price increases in the market segment Wind Energy as well as the segment-wide improvement of the operational performance.

After consideration of non-recurring items in the amount of minus Ŷ2.6 million, EBIT improved to Ŷ1.1 million in the first quarter 2020 (Q1/2019: minus Ŷ2.0 million). Non-recurring items in the reporting period as well as in the prior year period mainly included the additional depreciation relating to the purchase price allocation from the acquisition of the shares in the SGL Composites companies.

Reporting segment Graphite Materials & Systems (GMS)

	1st Quarter
Ŷ million	2020	2019 1)	Change
Sales revenue	ƇƉƊƌ	ƇƌƌƊ	–ƇƏƇ
EBITDA	ƇƎƏ	ƉƈƎ	–ƊƈƊ
Operating profit (EBIT)	ƇƇƏ	ƈƌƋ	–ƋƋƇ
Return on sales (EBIT-margin)	ƎƎ	ƇƋƏ	-
Return on capital employed (ROCE EBIT) 2)	ƇƉƈ	ƇƍƊ	-

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

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)

The development of sales revenues in the reporting segment Graphite Materials & Systems (GMS) in the first quarter 2020 was also in line with our original forecast at Ŷ134.6 million, a decline of approximately 19% (currency adjusted: minus 20%) compared to the prior year level. We had anticipated a strong decline in sales revenues due to the changes in the supply chain in our lithium-ion battery business. In the reporting period, all market segments declined compared to the prior year period with the exception of Semiconductors, which continued to grow double-digit.

Compared to the record earnings level in the prior year period (Q1/2019: Ŷ26.5 million), EBIT in the reporting period declined by 55% to Ŷ11.9 million. This led to a lower EBIT-margin of 8.8% (Q1/2019: 15.9%). In line with the development in sales revenues, almost all markets segments posted lower earnings compared to the prior year period. In addition, the prior year period also included a positive IFRS 15 effect. Based on the substantially higher sales revenues, earnings in the market segment Semiconductors improved slightly, while earnings in the market segment Automotive & Transport was stable despite lower sales revenues due to productivity improvements.

Reporting segment Corporate

		1st Quarter
Ŷ million	2020	2019 1)	Change
Sales revenue	ƍƍ	ƍƊ	ƊƇ
thereof Central Innovation	ƐƉ	Ɛƈ	ƋƐƐ
EBITDA	–ƊƎ	–ƋƋ	Ƈƈƍ
Operating loss (EBIT)	–ƌƌ	–Ǝƈ	ƇƏƋ
thereof Central Innovation	–ƉƐ	–ƈƉ	–ƉƐƊ

1) Adjusted to reflect the reclassification of the business with gas diffusion layers to the reporting segment GMS

Sales revenues in the reporting segment Corporate in the first quarter 2020 were approximately on the prior year level (no currency effect).

EBIT in the reporting segment Corporate improved to minus Ŷ6.6 million compared to minus Ŷ8.2 million in the prior year period despite slightly higher expenses in our central research and development department Central Innovation. This improvement is primarily due to a one-time income from the final invoicing of services to divested business units (former Business Unit Performance Products resp. PP).

Group business development

Condensed Consolidated Income Statement

	1st Quarter
Ŷ million	2020	2019	Change
Sales revenue	ƈƊƌƎ	ƈƎƎƎ	–ƇƊƋ
Cost of sales	–ƇƏƋƎ	–ƈƈƌƋ	ƇƉƌ
Gross profit	ƋƇƐ	ƌƈƉ	–ƇƎƇ
Selling, administrative and R&D
expenses	–ƊƋƊ	–ƊƎƍ	ƌƎ
Other operating income/expenses	ƈƌ	ƇƋ	ƍƉƉ
Result from investments accounted
for At-Equity	ƐƎ	Ɖƌ	–ƍƍƎ
Operating profit (EBIT) before non
recurring items (recurring EBIT)	ƏƐ	ƇƎƍ	–ƋƇƏ
Non-recurring items	–ƈƌ	–ƈƊ	–ƎƉ
Operating profit (EBIT)	ƌƊ	ƇƌƉ	–ƌƐƍ
EBITDA before non-recurring items	ƈƊƌ	ƉƌƉ	–Ɖƈƈ

Sales revenue of SGL Carbon fell significantly by almost 15% (no currency effect) to Ŷ246.8 million (Q1/2019: Ŷ288.8 million). The decline in sales revenue is primarily attributable to the anticipated lower revenues in the GMS market segment Battery & other energy. Reduced deliveries at CFM due to Covid-19 related production interruptions in customer operations, which started in March, as well as restructuring driven lower sales in the market segment Textile Fibers, also contributed to the decline in sales revenue. Gross margin decreased to 20.7% (Q1/2019: 21.6%) in the reporting period due to lower fixed cost absorption in the reporting segment GMS. Accordingly, gross profit decreased to Ŷ51.0 million in the reporting period from Ŷ62.3 million in the prior year period. Selling, administrative and R&D costs decreased by 7% to Ŷ45.4 million (Q1/2019: Ŷ48.7 million), and thus at a lower rate than sales revenue, because selling costs could not yet be reduced to the same extent as the decrease in sales revenue.

Recurring EBIT in the reporting period fell by 52% to Ŷ9.0 million (Q1/2019: Ŷ18.7 million) as the significant decline in earnings in the reporting segment GMS could not be offset by operating earnings improvements in the reporting segment CFM and in Corporate.

Non-recurring items of Ŷ2.6 million in the reporting period mainly comprise additional amortization of identified assets and liabilities from purchase price allocations for the SGL Composites companies. EBIT after non-recurring items decreased from Ŷ16.3 million in the first quarter of 2019 to Ŷ6.4 million in the reporting period.

Net financing result

		1st Quarter
Ŷ million	2020	2019	Change
Interest income	Ɛƈ	Ɛƌ	–ƌƌƍ
Interest expense	–ƊƊ	–Ɖƍ	–ƇƎƏ
Imputed interest convertible bond (non-cash)	–Ɛƍ	–Ƈƌ	ƋƌƉ
Imputed interest finance lease (non cash)	–ƐƎ	–ƐƏ	ƇƇƇ
Interest expense on pensions	–ƇƐ	–ƇƋ	ƉƉƉ
Interest expense, net	–ƌƍ	–ƍƇ	Ƌƌ
Amortization of refinancing costs (non-cash)	–Ɛƌ	–ƐƊ	–ƋƐƐ
Foreign currency valuation of Group loans (non-cash)	–ƐƏ	ƇƇ	!ƇƐƐ
Other financial expenses/income	–Ƈƈ	Ɛƈ	>-ƇƐƐ
Other financing result	–ƈƍ	ƐƏ	>-ƇƐƐ
Net financing result	–ƏƊ	–ƌƈ	–ƋƇƌ

Interest expenses included the cash interest components for the 2019/2024 corporate bond with an interest rate of 4.625% and the 2018/2023 convertible bond with an interest rate of 3.0%. 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 lower interest expenses for pensions, the net interest expense for the reporting period improved slightly from minus Ŷ 7.1 million in the previous year to minus Ŷ6.7 million. In contrast, the other financial result, especially relating to the foreign currency valuation of group loans, deteriorated significantly year-on-year to minus Ŷ2.7 million (Q1/2019: Ŷ0.9 million). Primarily as a result of this valuation effect, net financial result declined significantly to minus Ŷ9.4 million (Q1/2019: minus Ŷ6.2 million).

Condensed Consolidated Income Statement (continued)

	1st Quarter
Ŷ million	2020	2019	Change
Operating profit (EBIT)	ƌƊ	ƇƌƉ	–ƌƐƍ
Net financing result	–ƏƊ	–ƌƈ	–ƋƇƌ
Result before income taxes	–ƉƐ	ƇƐƇ	>-ƇƐƐ
Income tax expense	–Ƈƈ	–ƇƇ	–ƏƇ
Net result for the period	–Ɗƈ	ƏƐ	>-ƇƐƐ
Attributable to:
Non-controlling interests	ƐƇ	ƐƇ	ƐƐ
Consolidated net result
(attributable to shareholders of the
parent company)	–ƊƉ	ƎƏ	>-ƇƐƐ
Earnings per share - basic and diluted
(in Ŷ)	–ƐƐƊ	ƐƐƍ	>-ƇƐƐ

Result before income taxes and net result

Mainly due to the reduced EBIT and the lower net financial result, the result before income taxes decreased from Ŷ10.1 million in the prior year period to minus Ŷ3.0 million in the reporting period. Income tax expense of Ŷ1.2 million (Q1/19: Ŷ1.1 million) was characterized by current tax expenses on the positive earnings contributions of group companies.

Consolidated net result of the period amounted to minus Ŷ4.3 million compared to Ŷ8.9 million in the prior year period (after deduction of non-controlling interests) in the reporting period and in the first quarter 2019 of Ŷ0.1 million, respectively).

Balance sheet structure

ASSETS Ŷm	31. Mar. 20	31. Dec. 19	Change
Non-current assets	ƎƇƉƇ	ƎƈƐƏ	–ƇƐ
Current assets	ƌƎƉƋ	ƌƎƉƏ	–ƐƇ
Total assets	ƇƊƏƌƌ	ƇƋƐƊƎ	–ƐƋ
EQUITY AND LIABILITIES Ŷm
Equity attributable to the
shareholders of the parent
company	ƊƊƉƉ	ƊƇƎƌ	ƋƏ
Non-controlling interests	ƇƐƉ	ƇƐƉ	ƐƐ
Total equity	ƊƋƉƌ	ƊƈƎƏ	ƋƎ
Non-current liabilities	ƍƍƎƉ	ƍƏƌƐ	–ƈƈ
Current liabilities	ƈƌƊƍ	ƈƍƏƏ	–ƋƊ
Total equity and liabilities	ƇƊƏƌƌ	ƇƋƐƊƎ	–ƐƋ

Working Capital

Ŷ million	31. Mar. 20	31. Dec. 19	Change
Inventories	ƉƐƊƍ	ƉƐƌƊ	–Ɛƌ
Trade accounts receivable and
contract assets	ƈƐƊƐ	ƈƐƏƇ	–ƈƊ
Trade payables	–ƇƐƐƍ	–ƇƐƎƍ	ƍƊ
Working Capital	ƊƐƎƐ	ƊƐƌƎ	ƐƉ

Working capital increased slightly by Ŷ1.2 million to Ŷ408.0 million as of March 31, 2020. The nominal increase results on one hand from the reduction in trade payables by Ŷ8.0 million. On the other hand, the reported trade receivables and contract assets decreased by Ŷ5.1 million.

Total assets as of March 31, 2020 of Ŷ1,496.6 million remained essentially unchanged compared to the level as of December 31, 2019 at Ŷ1,504.8 million. Currency effects slightly increased total assets by Ŷ7.5 million.

Capital expenditure in property, plant and equipment and intangible assets of Ŷ7.9 million in the first quarter of 2020 was well below the level of depreciation and amortization on noncurrent assets of Ŷ18.4 million (including amortization of Ŷ2.7 million from purchase price allocation). This led to a reduction in fixed assets. Positive currency translation effects of Ŷ5.9 million, particularly from the stronger US dollar, had partly offset this operational reduction in non-current assets. In contrast, current assets changed only slightly. The reduction in trade receivables and contract assets of Ŷ5.1 million and in other receivables and other assets of Ŷ6.3 million contributed to the increase in total liquidity of Ŷ12.7 million.

The decrease in non-current liabilities is mainly attributable to the reduction in pension provisions by Ŷ24.8 million to Ŷ293.9 million. This decrease is the result of the adjustment of the pension discount rates to the expected long-term interest environment in Germany by 0.7%-points up to 1.8%, whereas the interest rate level in the US has not changed significantly.

The decrease in current liabilities results from the reduction in trade payables by Ŷ8.0 million and the repayment of IFRS 16 lease liabilities following the acquisition of a building in the amount of Ŷ6.7 million.

Increase in equity

As of March 31, 2020, equity attributable to the shareholders of the parent company increased by Ŷ24.7 million to Ŷ443.3 million (December 31, 2019: Ŷ418.6 million). The increase is mainly attributable to the positive effects from the adjustment of interest rates for pension provisions to the increased interest rate environment in Germany by Ŷ25.2 million. Positive foreign currency changes of Ŷ3.8 million were offset by the net result of minus Ŷ 4.3 million. Overall, the equity ratio as of March 31, 2020 increased to 29.6% compared to 27.8% as of December 31, 2019.

Net financial debt

Ŷ million	31. Mar. 20	31. Dec. 19	Change
Carrying amount of current and
non-current financial liabilities	ƊƇƊƊ	ƊƐƍƌ	Ƈƍ
Remaining imputed interest for
the convertible bonds	ƇƐƐ	ƇƐƍ	–ƌƋ
Accrued refinancing cost	ƌƏ	ƍƉ	–ƋƋ
Total financial debt (nominal
amount)	ƊƉƇƉ	ƊƈƋƌ	ƇƉ
Liquidity	ƇƊƏƎ	ƇƉƍƇ	ƏƉ
Net financial debt	ƈƎƇƋ	ƈƎƎƋ	–ƈƊ

Financial debt mainly includes the corporate bond 2019/2024 of Ŷ250.0 million, the convertible bond 2018/2023 of Ŷ159.3 million, liabilities to banks of Ŷ22.1 million (December 31, 2019: Ŷ16.3 million) and the netted amounts of the remaining imputed interest components as well as the refinancing costs.

As of March 31, 2020, net financial debt decreased by Ŷ7.0 million to Ŷ281.5 million. This development is primarily attributable to the positive free cash flow from continuing operations of Ŷ17.9 million less the increase in financial debt relating to a loan for the acquisition of a building lease of Ŷ6.7 million.

Free cash flow

	1st Quarter
Ŷ million	2020	2019
Cash flow from operating activities
Result before income taxes	–ƉƐ	ƇƐƇ
Depreciation/amortization expense	ƇƎƊ	ƈƐƊ
Changes in working capital	–Ɛƍ	–ƇƋƉ
Miscellaneous items	ƌƐ	–ƇƇƇ
Cash flow from operating activities	ƈƐƍ	ƊƇ
Cash flow from investing activities
Payments to purchase intangible assets
and property, plant & equipment	–ƍƏ	–ƇƋƊ
Proceeds from the sale of intangible
assets and property, plant & equipment	ƐƇ	ƇƐ
Dividend payments from investments
accounted for At-Equity	ƋƐ	ƌƐ
Payments received for divestitures	-	Ɛƌ
Cash flow from investing activities - continuing
operations	–ƈƎ	–ƍƎ
Cash flow from investing activities -
discontinued operations	–ƈƉ	–ƇƐƋ
Cash flow from investing activities - continuing
and discontinued operations	–ƋƇ	–ƇƎƉ
Free cash flow 1) - continuing operations	ƇƍƏ	–Ɖƍ
Free cash flow 1) - discontinued operations	–ƈƉ	–ƇƐƋ

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

Cash flow from operating activities in the first quarter 2020 improved significantly by Ŷ16.6 million to Ŷ20.7 million, in particular because, in contrast to previous years, there was no significant increase in working capital in the first quarter due to the declining sales revenue. In addition, cash flow from investing activities improved from minus Ŷ7.8 million in the prior year period to minus Ŷ2.8 million in the reporting period, mainly because of lower capital expenditure in intangible assets and property, plant & equipment, which decreased significantly in the reporting period by almost 50% to Ŷ7.9 million (Q1/2019: Ŷ15.4 million). The first quarter 2020 included cash inflows from a dividend payment from the joint venture with Brembo of Ŷ5.0 million (prior year period: Ŷ6.0 million).

As a result of the above effects, free cash flow from continuing operations improved significantly to Ŷ17.9 million in the reporting period (Q1/2019: minus Ŷ3.7 million).

Free cash flow from discontinued operations also improved significantly to minus Ŷ2.3 million in the reporting period after Ŷ10.5 million in the prior year period. In the reporting period, the figure primarily includes a tax payment for prior years for the former business unit PP, while the prior year figure includes a settlement payment to the acquirer of the Aerostructures business.

Employees

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

Headcount	31. Mar. 20	31. Dec. 19	Change
Composites - Fibers & Materials	ƇƌƋƋ	ƇƌƏƎ	–ƈƋ
Graphite Materials & Systems	ƉƇƉƉ	ƉƇƊƇ	–ƐƉ
Corporate	ƈƏƎ	ƈƎƎ	ƉƋ
Total SGL Carbon	ƋƐƎƌ	ƋƇƈƍ	–ƐƎ
Headcount	31. Mar. 20	31. Dec. 19	Change
Germany	ƈƉƊƌ	ƈƉƊƇ	Ɛƈ
Europe excluding Germany	ƇƊƈƎ	ƇƊƌƇ	–ƈƉ
USA	ƎƐƇ	ƎƈƏ	–ƉƊ
Asia	ƋƇƇ	ƊƏƌ	ƉƐ

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, 2019.

In the annual report we had already referred to the risks arising from possible effects from the corona virus on the economic environment. Due to the ongoing Covid-19 pandemic, global uncertainty has increased and the risks to the global economy have risen further. The extent and duration of the pandemic's impact on the business activities of SGL Carbon cannot yet be fully assessed. This is reflected in increased risks in the business units where we now see high risks on the market side. In the reporting segment Composites – Fibers & Materials (CFM), opportunities and risks mainly depend on how the sales volume develops. In particular, businesses in the Industrial Applications, Automotive and Aerospace market segments are increasingly affected by volume risks due to Covid-19-related production interruptions or cutbacks in our customer industries, which could have a negative impact on the financial performance. As a result, the opportunity and risk profile has risen to a high level.

In the reporting segment Graphite Materials & Systems (GMS), the opportunity and risk profile also changed to a high level, particularly in terms of price and volume development. Here, the development of demand in the market segments Industrial Applications, Chemicals and Automotive & Transport has to be monitored carefully. Since GMS is characterized by a relatively high proportion of fixed costs, there is also a particular risk that cost structures cannot fully be adjusted to the lower demand or only with a time lag. This can temporarily have a significant negative impact on the financial performance.

If the reporting segments CFM and GMS do not develop as planned in the long term, there is an increased risk of impairment of the reported carrying amounts.

Furthermore, the business risks described above may have a negative impact on the financial position. A possible increase in our working capital, e.g. because the production pipeline cannot be adjusted to meet demand, would also have a negative impact here. However, with liquidity of around Ŷ 150 million at the end of the first quarter of 2020, we consider ourselves well positioned in the current environment.

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

In light of the uncertainties surrounding the further development, the duration as well as the impacts from the Covid-19 pandemic, the Board of Management of SGL Carbon SE decided on April 1, 2020, to suspend the guidance for the fiscal year 2020 as published in the Annual Report 2019.

Due to the various measures to contain the Covid-19 pandemic, which have materially impacted and will likely continue to impact social and economic life, a significant decline in all major KPIs is to be expected for this fiscal year.

Thanks to initial measures and in contrast to the usual seasonality, we were even able to increase liquidity at the end of the first quarter 2020 compared to the year-end 2019. To counteract the anticipated reduction in available liquidity in the coming months, we have not only employed personnel instruments such as applying for short-time work, but also initiated various limitations and postponements of expenditures in both business units as well as in Corporate. We are also working on additional funding options independent of the capital markets. The Company is intensively working on identifying and mitigating potential risks.

The first quarter 2020 remained largely within the scope of our initial forecasts, as March 2020 was not yet materially impacted by Covid-19 impacts. In contrast, our production processes have been significantly affected by customers' and our own temporary production stops, reduced production levels as well as demand reductions since the beginning of the second quarter 2020. Accordingly, we currently expect sales revenues to decline substantially double-digit compared to the prior year level. As a consequence, recurring EBIT is expected to be negative in the second quarter 2020.

A reliable outlook for the entire fiscal year 2020 can only be presented after the overall economic situation including the supply chains have largely stabilized.

SGL Carbon expects to resume its sustainable mobility, energy and digitization driven growth path after overcoming the pandemic. It is already visible today, that sustainability and digitization, two topics that have particular relevance for us, will gain in importance and that our business model will be strengthened by this development. Demand for our products will grow in the medium term, as our products offer significant customer benefits such as higher efficiency, lower costs, reduced consumption of resources, and improved CO2 footprint. These issues are also highlighted in the planned and implement stimulus programs of various nations.

Our lightweight solutions at competitive costs and our performance relevant materials and components for electric mobility and fuel cell cars enable sustainable mobility and reduce CO2 emissions in both the automotive and the aerospace industries.

We substantially contribute to the advancement of sustainable energy generation with our specialty graphites for the solar industry and our carbon fibers for the wind energy industry.

The Corona pandemic has accelerated the digitization trend, as millions of employees and students are working from home, and social contacts are primarily maintained virtually. We offer graphite based solutions along the entire semiconductor production route. Our growth is primarily driven by high speed internet, 5G technology for cellular networks, autonomous driving, internet of things and increased usage of LEDs. We are experiencing double-digit growth particularly in our silicon carbide coated specialty graphites for wideband-gap technology. which is currently experiencing increased usage in high performance electronics and replacing the conventional technology.

Wiesbaden, May 14, 2020

SGL Carbon SE

The Board of Management

Consolidated Financial Statements

Consolidated Income Statement

		1st Quarter
Ŷ million	2020	2019	Change
Sales revenue	ƈƊƌƎ	ƈƎƎƎ	–ƇƊƋ
Cost of sales	–ƇƏƎƊ	–ƈƈƏƇ	ƇƉƊ
Gross profit	ƊƎƊ	ƋƏƍ	–ƇƎƏ
Selling expenses	–ƈƋƐ	–ƈƌƍ	ƌƊ
Research and development costs	–ƏƏ	–ƏƎ	–ƇƐ
General and administrative expenses	–ƇƐƋ	–Ƈƈƈ	ƇƉƏ
Other operating income	ƊƐ	ƉƉ	ƈƇƈ
Other operating expenses	–ƇƊ	–ƇƎ	ƈƈƈ
Result from investments accounted for At-Equity	ƐƎ	Ɖƌ	–ƍƍƎ
Restructuring expenses	ƐƐ	Ɛƈ	–ƇƐƐƐ
Operating profit	ƌƊ	ƇƌƉ	–ƌƐƍ
Interest income	Ɛƈ	Ɛƌ	–ƌƌƍ
Interest expense	–ƌƏ	–ƍƍ	ƇƐƊ
Other financing result	–ƈƍ	ƐƏ	>-ƇƐƐ
Result before income taxes	–ƉƐ	ƇƐƇ	>-ƇƐƐ
Income tax expense	–Ƈƈ	–ƇƇ	–ƏƇ
Net result for the period	–Ɗƈ	ƏƐ	>-ƇƐƐ
Thereof attributable to:
Non-controlling interests	ƐƇ	ƐƇ	ƐƐ
Consolidated net result (attributable to shareholders of the parent company)	–ƊƉ	ƎƏ	>-ƇƐƐ
Earnings per share, basic and diluted, (inŶ)	–ƐƐƊ	ƐƐƍ	>-ƇƐƐ

Consolidated Statement of Comprehensive Income

		1st Quarter
Ŷ million	2020	2019
Net result for the period	–Ɗƈ	ƏƐ
Items that may be reclassified subsequently to profit or loss
Cash flow hedges 1)	ƐƐ	ƐƇ
Currency translation 2)	Ɖƍ	ƇƐƐ
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/losses on pensions and similar obligations 3)	ƈƋƈ	–ƇƌƉ
Other comprehensive income	ƈƎƏ	–ƌƈ
Comprehensive income	ƈƊƍ	ƈƎ
Thereof attributable to:
Non-controlling interests	ƐƐ	ƐƇ
Consolidated net result (attributable to shareholders of the parent company)	ƈƊƍ	ƈƍ

1) Includes tax effects of Ŷ0.0 million (2019: Ŷ0.0 million) in the first quarter 2020

2) Includes tax effects of minus Ŷ0.8 million (2019: minus Ŷ0.7 million) in the first quarter 2020

3) Includes tax effects of Ŷ0.0 million (2019: Ŷ0.0 million) in the first quarter 2020

Consolidated Balance Sheet

ASSETS Ŷm	31. Mar. 20	31. Dec. 19	Change
Non-current assets
Goodwill	ƊƈƐ	ƊƇƍ	Ɛƍ
Other intangible assets	ƊƈƉ	ƊƋƐ	–ƌƐ
Property, plant and equipment	ƌƌƎƈ	ƌƌƏƌ	–Ɛƈ
Investments accounted for At-Equity	Ƌƈƌ	Ƌƌƍ	–ƍƈ
Other non-current assets	ƌƊ	ƍƐ	–Ǝƌ
Deferred tax assets	Ƈƌ	ƐƏ	ƍƍƎ
	ƎƇƉƇ	ƎƈƐƏ	–ƇƐ
Current assets
Inventories	ƉƐƊƍ	ƉƐƌƊ	–Ɛƌ
Trade receivables and contract assets	ƈƐƊƐ	ƈƐƏƇ	–ƈƊ
Other receivables and other assets	ƈƋƐ	ƉƇƉ	–ƈƐƇ
Liquidity	ƇƊƏƎ	ƇƉƍƇ	ƏƉ
Time deposits	ƊƐ	ƊƐ	ƐƐ
Cash and cash equivalents	ƇƊƋƎ	ƇƉƉƇ	ƏƋ
	ƌƎƉƋ	ƌƎƉƏ	–ƐƇ

Total assets	ƇƋƐƊƎ
ƇƊƏƌƌ	–ƐƋ

EQUITY AND LIABILITIES Ŷm	31. Mar. 20	31. Dec. 19	Change
Equity
Issued capital	ƉƇƉƈ	ƉƇƉƈ	ƐƐ
Capital reserves	ƇƐƊƇƌ	ƇƐƊƇƌ	ƐƐ
Accumulated losses	–ƏƇƇƋ	–ƏƉƌƈ	ƈƌ
Equity attributable to the shareholders of the parent company	ƊƊƉƉ	ƊƇƎƌ	ƋƏ
Non-controlling interests	ƇƐƉ	ƇƐƉ	ƐƐ
Total equity	ƊƋƉƌ	ƊƈƎƏ	ƋƎ
Non-current liabilities
Provisions for pensions and similar employee benefits	ƈƏƉƏ	ƉƇƎƍ	–ƍƎ
Other provisions	ƉƈƎ	ƉƇƊ	ƊƋ
Interest-bearing loans	ƊƇƐƊ	ƊƐƊƊ	ƇƋ
Other financial liabilities	ƉƉƇ	ƉƊƈ	–Ɖƈ
Other liabilities	ƋƋ	ƋƉ	ƉƎ
Deferred tax liabilities	ƈƌ	ƈƐ	ƉƐƐ
	ƍƍƎƉ	ƍƏƌƐ	–ƈƈ
Current liabilities
Other provisions	ƌƉƉ	ƌƍƇ	–Ƌƍ
Current portion of interest-bearing loans	ƊƐ	Ɖƈ	ƈƋƐ
Trade payables	ƇƐƐƍ	ƇƐƎƍ	–ƍƊ
Other financial liabilities	ƌƊƊ	ƍƉƊ	–ƇƈƉ
Other liabilities	ƉƈƉ	ƈƍƋ	ƇƍƋ
	ƈƌƊƍ	ƈƍƏƏ	–ƋƊ
Total equity and liabilities	ƇƊƏƌƌ	ƇƋƐƊƎ	–ƐƋ

Consolidated Cash Flow Statement

	1st Quarter
Ŷ million	2020	2019
Cash flow from operating activities
Result before income taxes	–ƉƐ	ƇƐƇ
Adjustments to reconcile the result to cash flow from operating activities:
Interest expense (net)	ƌƍ	ƍƇ
Change in value of contract assets (IFRS 15)	ƇƇ	–ƊƎ
Result from the disposal of property, plant and equipment	ƐƐ	–Ɛƈ
Depreciation/amortization expense	ƇƎƊ	ƈƐƊ
Result from investments accounted for At-Equity	–ƐƎ	–Ɖƌ
Amortization of refinancing costs	Ɛƌ	ƐƊ
Interest received	Ɛƈ	ƇƐ
Interest paid	–ƏƇ	–ƊƇ
Income taxes paid	–ƇƏ	–ƐƋ
Changes in provisions, net	–ƊƊ	–ƇƊƐ
Changes in working capital
Inventories	ƇƏ	–ƍƏ
Trade receivables and contract assets	ƋƉ	–Ƈƍ
Trade payables	–ƍƏ	–Ƌƍ
Changes in other operating assets/liabilities	ƇƉƌ	ƍƌ
Cash flow from operating activities	ƈƐƍ	ƊƇ

	1st Quarter
Ŷ million	2020	2019
Cash flow from investing activities
Payments to purchase intangible assets and property, plant & equipment	–ƍƏ	–ƇƋƊ
Proceeds from the sale of intangible assets and property, plant & equipment	ƐƇ	ƇƐ
Dividend payments from investments accounted for At-Equity	ƋƐ	ƌƐ
Payments received for divestitures	-	Ɛƌ
Cash flow from investing activities - continuing operations	–ƈƎ	–ƍƎ
Changes in time deposits	ƐƐ	ƋƊƈ
Cash flow from investing and cash management activities - continuing operations	–ƈƎ	ƊƌƊ
Cash flow from investing activities and cash management activities - discontinued operations	–ƈƉ	–ƇƐƋ
Cash flow from investing activities and cash management activities - continuing and discontinued operations	–ƋƇ	ƉƋƏ
Cash flow from financing activities
Proceeds from issuance of financial liabilities	ƌƍ	ƐƐ
Repayment of financial liabilities	–ƐƏ	–ƐƋ
Payments in connection with financing activities	-	–ƉƐ
Payments of principal portion of lease liabilities	–ƎƎ	–ƈƇ
Cash flow from financing activities	–ƉƐ	–Ƌƌ
Effect of foreign exchange rate changes	ƐƇ	Ɛƌ
Net change in cash and cash equivalents	Ƈƈƍ	ƉƋƐ
Cash and cash equivalents at beginning of period	ƇƉƉƇ	ƇƈƈƋ
Cash and cash equivalents at end of period	ƇƊƋƎ	ƇƋƍƋ
Time deposits at end of period	ƊƐ	ƉƏ
Liquidity	ƇƊƏƎ	ƇƌƇƊ

Condensed Consolidated Statement of Changes in Equity

	1st Quarter 20
	Equity attributable to
	the shareholders of	Non-controlling
Ŷ million	the parent company	interests	Total equity
%DODQFH DV RI'HFHPEHU ƉƇ	ƊƇƎƌ	ƇƐƉ	ƊƈƎƏ
Net result for the period	–ƊƉ	ƐƇ	–Ɗƈ
Other comprehensive income	ƈƏƐ	–ƐƇ	ƈƎƏ
Comprehensive income	ƈƊƍ	ƐƐ	ƈƊƍ
%DODQFH DV RI0DUFK ƉƇ	ƊƊƉƉ	ƇƐƉ	ƊƋƉƌ

	1st Quarter 19
Equity attributable to
the shareholders of	Non-controlling
the parent company	interests	Total equity
ƋƉƇƌ	ƇƐƍ	ƋƊƈƉ
ƐƇ	ƐƐ	ƐƇ
ƋƉƇƍ	ƇƐƍ	ƋƊƈƊ
ƎƏ	ƐƇ	ƏƐ
–ƌƈ	ƐƐ	–ƌƈ
ƈƍ	ƐƇ	ƈƎ
ƐƐ	–ƐƋ	–ƐƋ
ƋƉƊƊ	ƇƐƉ	ƋƊƊƍ

Segment information

Ŷ million	CFM	GMS	Corporate	SGL Carbon
1st Quarter 20
Sales revenue by customer industry
Mobility	ƋƉƌ	ƇƉƍ	ƈƋ	ƌƏƎ
Energy	ƇƋƉ	ƈƊƉ	-	ƉƏƌ
Industrial Applications	ƇƎƇ	ƊƇƌ	Ƌƈ	ƌƊƏ
Chemicals	-	ƉƐƌ	-	ƉƐƌ
Digitization	-	ƈƊƊ	-	ƈƊƊ
Textile Fibers	ƇƍƋ	-	-	ƇƍƋ
Total sales revenue	104.5	134.6	7.7	246.8
Operating profit/loss (EBIT) before non-recurring items (recurring EBIT)	Ɖƍ	ƇƇƏ	–ƌƌ	ƏƐ
Non-recurring items 1)	–ƈƌ	ƐƐ	ƐƐ	–ƈƌ
Operating profit/loss (EBIT)	ƇƇ	ƇƇƏ	–ƌƌ	ƌƊ
Capital expenditures 2)	ƉƐ	ƊƉ	Ɛƌ	ƍƏ
Earnings before interest, taxes, depreciation and amortization (EBITDA) before non
recurring items	ƇƐƋ	ƇƎƏ	–ƊƎ	ƈƊƌ
Amortization/depreciation on intangible assets and property, plant and equipment
before non-recurring items	ƌƎ	ƍƐ	ƇƎ	ƇƋƌ
Result from investments accounted for At-Equity	ƐƎ	-	-	ƐƎ
Working Capital 3)	ƇƌƊƊ	ƈƌƍƇ	–ƈƉƋ	ƊƐƎƐ
Capital employed 4)	ƋƎƊƌ	ƋƉƍƌ	ƏƐƏ	ƇƈƇƉƇ

Ŷ million	CFM	GMS 5)	Corporate 5)	SGL Carbon
1st Quarter 19
Sales revenue by customer industry
Mobility	ƌƋƉ	ƇƌƐ	ƈƐ	ƎƉƉ
Energy	ƍƇ	ƊƐƎ	ƐƐ	ƊƍƏ
Industrial Applications	ƇƎƉ	ƊƏƈ	ƋƊ	ƍƈƏ
Chemicals	-	ƉƌƇ	-	ƉƌƇ
Digitization	-	ƈƊƉ	-	ƈƊƉ
Textile Fibers	ƈƊƉ	-	-	ƈƊƉ
Total sales revenue	115.0	166.4	7.4	288.8
Operating profit/loss (EBIT) before non-recurring items (recurring EBIT)	ƐƊ	ƈƌƋ	–Ǝƈ	ƇƎƍ
Non-recurring items 1)	–ƈƊ	ƐƐ	ƐƐ	–ƈƊ
Operating profit/loss (EBIT)	–ƈƐ	ƈƌƋ	–Ǝƈ	ƇƌƉ
Capital expenditures 2)	ƋƏ	ƍƋ	ƈƐ	ƇƋƊ
Earnings before interest, taxes, depreciation and amortization (EBITDA) before non
recurring items	ƏƐ	ƉƈƎ	–ƋƋ	ƉƌƉ
Amortization/depreciation on intangible assets and property, plant and equipment	–Ǝƌ	–ƌƉ	–ƈƌ	–ƇƍƋ
Result from investments accounted for At-Equity	Ɖƌ	-	-	Ɖƌ
Working Capital (31.12.) 3)	ƇƋƍƐ	ƈƌƏƍ	–ƇƏƏ	ƊƐƌƎ
Capital employed (31.12.) 4)	ƋƎƐƏ	ƋƊƇƇ	ƏƍƎ	ƇƈƇƏƎ

1) Non-recurring items comprise the carryforward of hidden reserves realized as part of the purchase price allocation of SGL Composites DE and US as well as SGL Composites AT (the SGL Composites companies) totaling minus Ŷ2.6 (Q1/19: minus Ŷ2.6 million), and income from the release of restructuring provisions of Ŷ0.2 million in Q1/19

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

5) Adjusted to reflect the reclassification of the business with gas diffusuion layers for fuel cells from Corporate to the reporting segment GMS

Other Information

Sales Revenue and Operating Profit/Loss by Reporting Segment

		1st Quarter
Ŷ million	2020	2019 1)	Change
Sales revenue
Composites - Fibers & Materials	ƇƐƊƋ	ƇƇƋƐ	–ƏƇ
Graphite Materials & Systems	ƇƉƊƌ	ƇƌƌƊ	–ƇƏƇ
Corporate	ƍƍ	ƍƊ	ƊƇ
SGL Carbon	ƈƊƌƎ	ƈƎƎƎ	–ƇƊƋ

Ŷ million	2020	2019 1)	Change
EBIT before non-recurring items (recurring EBIT) 2)
Composites - Fibers & Materials	Ɖƍ	ƐƊ	! ƇƐƐ
Graphite Materials & Systems	ƇƇƏ	ƈƌƋ	–ƋƋƇ
Corporate	–ƌƌ	–Ǝƈ	ƇƏƋ
SGL Carbon	ƏƐ	ƇƎƍ	–ƋƇƏ

1) Adjusted to reflect the reclassification of the business with gas diffusion layers for fuel cells from Corporate to the reporting segment GMS

2) Non-recurring items of minus Ŷ2.6 million and minus Ŷ2.4 million in the first quarter 2020 and 2019, respectively

Quarterly Sales Revenue, Operating Profit/Loss (EBIT) by Reporting Segment

	2019 1)			2020
Ŷ million	Q1	Q2	Q3	Q4	Full Year	Q1
Sales revenue
Composites - Fibers & Materials	ƇƇƋƐ	ƇƐƊƊ	ƇƐƏƈ	ƇƐƉƐ	ƊƉƇƌ	ƇƐƊƋ
Graphite Materials & Systems	ƇƌƌƊ	ƇƋƏƊ	ƇƋƊƉ	ƇƊƈƊ	ƌƈƈƋ	ƇƉƊƌ
Corporate	ƍƊ	ƎƏ	ƍƊ	ƎƏ	Ɖƈƌ	ƍƍ
SGL Carbon	ƈƎƎƎ	ƈƍƈƍ	ƈƍƐƏ	ƈƋƊƉ	ƇƐƎƌƍ	ƈƊƌƎ

			2019 1)			2020
Ŷ million	Q1	Q2	Q3	Q4	Full Year	Q1
EBIT before non-recurring items (recurring EBIT) 2)
Composites - Fibers & Materials	ƐƊ	ƈƊ	–Ɗƌ	–ƌƋ	–ƎƉ	Ɖƍ
Graphite Materials & Systems	ƈƌƋ	ƈƉƋ	ƈƊƋ	ƇƇƐ	ƎƋƋ	ƇƇƏ
Corporate	–Ǝƈ	–ƌƎ	–ƉƋ	–ƇƐƉ	–ƈƎƎ	–ƌƌ
SGL Carbon	ƇƎƍ	ƇƏƇ	ƇƌƊ	–ƋƎ	ƊƎƊ	ƏƐ

1) Adjusted to reflect the reclassification of the business with gas diffusion layers for fuel cells from Corporate to the reporting segment GMS

2) Non-recurring items of minus Ŷ82.7 million in 2019 and minus Ŷ2.6 million in the first quarter 2020

Quarterly Consolidated Income Statement

	2019				2020
Ŷ million	Q1	Q2	Q3	Q4	Full Year	Q1
Sales revenue	ƈƎƎƎ	ƈƍƈƍ	ƈƍƐƏ	ƈƋƊƉ	ƇƐƎƌƍ	ƈƊƌƎ
Cost of sales	–ƈƈƌƋ	–ƈƇƐƌ	–ƈƇƍƇ	–ƈƇƌƐ	–ƎƍƐƈ	–ƇƏƋƎ
Gross profit	ƌƈƉ	ƌƈƇ	ƋƉƎ	ƉƎƉ	ƈƇƌƋ	ƋƇƐ
Selling, administrative, R&D and other operating income/expense	–Ɗƍƈ	–ƊƋƍ	–ƊƇƊ	–ƊƏƈ	–ƇƎƉƋ	–ƊƈƎ
Result from investments accounted for At-Equity	Ɖƌ	ƈƍ	ƊƐ	ƋƇ	ƇƋƊ	ƐƎ
Operating profit (EBIT) before non-recurring items (recurring EBIT)	ƇƎƍ	ƇƏƇ	ƇƌƊ	–ƋƎ	ƊƎƊ	ƏƐ
Impairment loss/Effects from purchase price allocations	–ƈƌ	–Ƈƍ	–ƍƌƏ	–ƈƈ	–ƎƉƊ	–ƈƌ
Restructuring expenses	Ɛƈ	–Ɛƈ	Ɛƈ	ƐƋ	Ɛƍ	ƐƐ
Operating profit/loss (EBIT)	ƇƌƉ	Ƈƍƈ	–ƌƐƉ	–ƍƋ	–ƉƊƉ	ƌƊ
Net financing result	–ƌƈ	–ƇƈƋ	–ƇƉƏ	–ƌƉ	–ƉƎƏ	–ƏƊ
Result from continuing operations before income taxes	ƇƐƇ	Ɗƍ	–ƍƊƈ	–ƇƉƎ	–ƍƉƈ	–ƉƐ
Income tax expense	–ƇƇ	–Ɖƈ	–ƇƐƊ	–ƇƋ	–Ƈƌƈ	–Ƈƈ
Result from continuing operations	ƏƐ	ƇƋ	–ƎƊƌ	–ƇƋƉ	–ƎƏƊ	–Ɗƈ
Result from discontinued operations, net of income taxes	ƐƐ	–ƐƇ	ƐƐ	ƐƐ	–ƐƇ	ƐƐ
Net result for the period	ƏƐ	ƇƊ	–ƎƊƌ	–ƇƋƉ	–ƎƏƋ	–Ɗƈ
Thereof attributable to:
Non-controlling interests	ƐƇ	Ɛƈ	ƐƐ	Ɛƈ	ƐƋ	ƐƇ
Consolidated net result (attributable to shareholders of the parent
company)	ƎƏ	Ƈƈ	–ƎƊƌ	–ƇƋƋ	–ƏƐƐ	–ƊƉ

Financial Calendar 2020

Juni 16, 2020

Annual General Meeting

August 13, 2020

• Report on the First Half Year 2020
• Conference call for investors and analysts

November 12, 2020

• Statement on the Nine Months 2020
• 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 Inhouse produced 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