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SGL CARBON SE

Quarterly Report May 12, 2021

389_10-q_2021-05-12_cbafd505-6055-40f5-b439-59856a3bd333.pdf

Quarterly Report

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Report on the first quarter 2021

Summary

2

Group sales revenue in the first quarter 2021 of Ŷ241.5 million, down 2% below prior year (currency adjusted on prior year level). Expected positive impact from a contract termination with a customer of reporting segment Graphite Solutions contributes around Ŷ9 million to sales revenue and earnings.

EBITDA pre of Ŷ33.0 million, significantly higher year-on-year including this effect.

Restructuring and transformation program is further driven forward. In the first quarter, implementation continues according to plan.

Liquidity at Ŷ168.6 million developed positively compared to yearend 2020 (Ŷ141.8 million).

Net financial debt decreases by 5% to Ŷ271.5 million (year-end 2020 Ŷ286.5 million).

Funding notification of Ŷ42.9 million received for the development and industrialization of graphite anode materials for use in lithiumion batteries.

Outlook for fiscal year 2021 confirmed.

Financial Highlights

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƈƊƇƋ ƈƊƌƎ –ƈƇ
Earnings before interest, taxes, depreciation and amortization (EBITDA) pre 1) ƉƉƐ ƈƏƐ ƇƉƎ
EBITDA pre-margin ƇƉƍ ƇƇƎ ƇƏ-points
Operating profit (EBIT) ƇƍƐ ƌƊ !ƇƐƐ
Return on capital employed (ROCE EBIT) 2) Ƌƌ ƉƇ ƈƋ-points
Consolidated net result (attributable to shareholders of the parent company) ƌƇ –ƊƉ -
Ŷ million 31. Mar. 21 31. Dec. 20 Change
Total assets ƇƉƈƇƐ ƇƈƋƎƎ ƊƏ
Equity attributable to the shareholders of the parent company ƈƍƐƇ ƈƈƐƍ ƈƈƊ
Net financial debt 3) ƈƍƇƋ ƈƎƌƋ Ƌƈ
Leverage ratio 4) ƈƐ ƈƉ -
Equity ratio 5) ƈƐƊ ƇƍƋ ƈƏ-points

1) Q1/21 adjusted for insurance benefit of Ŷ2.0 million, the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.6 million and restructuring expenses of minus Ŷ1.6 million. Q1/20 adjusted for insurance benefit of Ŷ0.1 million, the carry-forward of the purchase price

allocations of the SGL Composites companies totaling minus Ŷ2.6 million and other material one-off effects of minus Ŷ4.5 million

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)

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 Group 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
Opportunities and Risks 12
Outlook 13
Consolidated Financial Statements 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 19
Segment Information 20
Other Information 21
Financial Calendar 2021 22

Investor Relations Contact ................................................. 23

News from the Group and the Businesses

SGL Carbon

March 2021

4

Deutsche Börse AG included the SGL Carbon SE share in the SDAX small cap index as of the chaining date on Monday, March 22, 2021. The promotion to the SDAX was completed under the so-called regular entry rule.

Reporting segment Graphite Solutions (GS)

March 2021

On March 10, 2021, SGL Carbon received a funding decision for the development and industrialization of innovative synthetic graphite electrode materials for use in lithium-ion batteries. The funding program runs under the second European IPCEI (Important Project of Common European Interest) / EUBatIn (European Battery Innovation) program, which aims to establish a competitive European value chain for lithium-ion batteries based on sustainable technologies. SGL Carbon's contribution to the IPCEI project ranges from the development of anode materials with enhanced performance, through energy-efficient and sustainable manufacturing processes, to novel recycling concepts. It also includes their scaling up from pilot scale to mass production. The aim is to establish a closed cycle for this cell component over the project period up to 2028. SGL Carbon has already laid a solid foundation for the project through prior investments such as the battery application laboratory at the Meitingen site.

Reporting segment Process Technology (PT)

February 2021

SGL Carbon supplied a hydrochloric acid (HCl) synthesis plant with integrated steam generation to Travancore-Cochin Chemicals Ltd. (TCCL), a major manufacturer in the chlor-alkali sector in southern India. At the end of January, TCCL officially inaugurated the plant in Kochi in the Indian state of Kerala. In the meantime, the plant has already been ramped up to full capacity at the customer's site. The HCl synthesis plant was completely designed and manufactured at SGL's production site in Pune, India. The scope of supply also included structural adaptation work on the customer's production building on a turnkey basis.

Reporting segment Composite Solutions (CS)

January 2021

On January 21, 2021, SGL Carbon reported on an expansion project at the Arkadelphia site in the US state of Arkansas. By introducing new production processes for fiber-based composites, the production of battery housings was ramped up. This is based on a substantial order for composite battery housings from a North American automotive manufacturer. The expansion reflects an investment in the plant of around \$4.5 million over three years and will increase the workforce at the site by 35 full-time employees. The company is receiving public funding for the investment from the Arkansas Economic Development Commission (AEDC), the City of Arkadelphia and Clark County, among others. The Arkadelphia site expansion began in October 2020 and is expected to be fully operational by the end of 2021.

Transformation program – Current status

March 2021

The restructuring and transformation project is proceeding according to plan in all areas. With a total of over 700 measures in the areas of purchasing, personnel, operations and service functions, we are making steady progress across all sites. As part of the restructuring, headcount will be reduced as well. More than 60% of the planned personnel measures were already implemented at the end of the quarter.

Interim Group Management Report

Economic Environment

In April 2021, the International Monetary Fund (IMF) raised its global growth forecast for the current year as well as for the following year. Nevertheless, the outlook is subject to major challenges related to differences in the speed of recovery both between and within countries and the continued potential for ongoing economic damage from the crisis. Recovery is underway at different speeds across regions, associated with sharp differences in the pace of vaccine uptake, the extent of economic policy support, and structural factors such as reliance on tourism. Among advanced economies, the United States are expected to surpass their pre-Covid 19 pandemic GDP level this year, whilst many other countries in this group will not reach that level until 2022. The picture is similar for emerging and developing economies. While China was able to maintain GDP levels in 2020 despite the pandemic, many other countries are not expected to achieve this until 2023.

For 2021, the IMF now expects global growth of 6.0%, 0.5 percentage points more than in the January forecast. In 2022, the IMF expects growth of 4.4%, 0.2 percentage points higher than predicted in January.

The IMF sees reasons for the stronger increase primarily in the more pronounced fiscal packages of measures in many economies, some of which were already implemented in the second half of 2020, and in the vaccine-driven recovery of the economies.

For the euro zone, the IMF expects economic output to increase by 4.4% in the current year, followed by a recovery of 3.8% in 2022, meaning that growth in 2021 and 2022 is 0.2 percentage points higher in each case than predicted in the IMF's January forecast. Germany is expected to grow by 3.6% (up 0.1 percentage points) in 2021 and 3.4% (up 0.1 percentage points) next year.

These upwardly revised growth forecasts for 2021 and the following year should support SGL Carbon in achieving its targets.

Basis of Preparation

The quarterly statement as of March 31, 2021 applies the same accounting principles and practices as those used in the 2020 annual financial statements, except for the presentation of interests paid in the cash flow statement. To provide a more meaningful presentation of the cash flow from operating activities, the option under IAS 7.33 was exercised and interest paid and received are shown as a component of the cash flow from financing activities starting from the first quarter of 2021. The prior period presentation was adjusted accordingly.

Key Events of the Business Development

Impacts and measures related to the Covid-19 pandemic

As a result of the Covid-19 pandemic, 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 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.

Since the beginning of the year 2021, the 29 production sites of SGL Carbon were able to largely maintain production and distribution of products without interruption thanks to the measures taken, but at different degrees of utilization. On March 31 approx. 6% of SGL Carbon employees were in shorttime work or similar measures, particularly in Germany and France.

Adjusted financial reporting

In order to focus our corporate management even more strongly on cash flow in the current challenging overall environment, we will use EBITDA pre (adjusted for one-off effects and non-recurring items) as the key performance indicator for our business units since the beginning of 2021. This gives us a better picture of the sustainable cash earnings potential of our Company's business units. Our outlook for 2021 is also based on the EBITDA pre.

Business Development

Segment Reporting

New reporting segment structure

Since January 1, 2021, SGL Carbon has been managing its operating business in four business units. Thus, focused business units were created, each having a homogeneous business model and clearly defined responsibility for earnings. The former reporting segment Composites - Fibers & Materials (CFM) has been broken down into the units Carbon Fibers (CF) and Composite Solutions (CS). The former reporting segment Graphite Materials & Systems (GMS) has been split into Graphite Solutions (GS) and Process Technology (PT). The reporting segments as presented below are directly derived from the new business units. In addition to the four operating reporting segments, we also have a fifth reporting segment, Corporate, in which central functions are included. The prior year's figures have been adjusted for reasons of comparability.

Reporting segment Graphite Solutions (GS)

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƇƐƎƉ ƇƇƇƍ –ƉƐ
EBITDA pre 1) ƈƈƏ ƈƐƎ ƇƐƇ
ƈƋ-
EBITDA pre-margin ƈƇƇ ƇƎƌ points
Operating profit (EBIT) ƇƎƉ ƇƇƎ ƋƋƇ

1) Q1/21 adjusted for insurance benefit of Ŷ2.0 million. Q1/20 adjusted for insurance benefit of Ŷ0.1 million and other material one-off effects of minus Ŷ2.6 million

Sales development in the reporting segment Graphite Solutions (GS) in the first quarter of 2021 was slightly below the prior year's level by around 3% (no change after adjusting for foreign exchange) at Ŷ108.3 million, but slightly above our expectations.

The Battery & Other Energy market segment showed stable development compared with the prior year. In addition, an expected positive sales and earnings effect of around Ŷ9 million is included in this market segment in the first quarter of 2021 from the early termination of a contract. The contract termination agreed in March will lead to a corresponding compensation payment, which will be received in the second quarter. The LED & Semiconductor market segment was able to increase sales significantly. In contrast, demand from the Industrial Applications market segment declined significantly in the first quarter of 2021.

Compared with the good prior-year quarter (Q1/2020: Ŷ20.8 million), EBITDA pre increased by 10% to Ŷ22.9 million in the reporting quarter, mainly as a result of the financial compensation. This led to a temporary increase in the EBITDA pre-margin to 21.1% (Q1/2020: 18.6%). In line with the revenue development, the Battery & Other Energy and LED & Semiconductor market segments recorded an increase in earnings, while earnings in the Automotive & Transportation market segment increased due to productivity improvements. All other market segments recorded a decline in earnings compared to the prior-year quarter due to lower demand.

EBITDA pre does not include insurance benefits of Ŷ2.0 million. Depreciation and amortization of Ŷ6.6 million changed only slightly (Q1/2020: Ŷ6.5 million). Mainly driven by the financial compensation and the insurance benefit, EBIT increased significantly by 55% to Ŷ18.3 million in the reporting period, compared to Ŷ11.8 million in Q1/2020.

Reporting segment Process Technology (PT)

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƇƏƉ ƈƉƐ –ƇƌƇ
EBITDA pre 1) –ƐƋ Ɛƍ -
–Ƌƌ-
EBITDA pre-margin –ƈƌ ƉƐ points
Operating loss (EBIT) –ƐƏ –ƐƉ >-ƇƐƐ

1) Q1/20 adjusted for other material one-off effects of minus Ŷ0.5 million

Sales in the reporting segment Process Technology (PT) declined significantly in the first quarter by 16% (currency adjusted: minus 18%) to Ŷ19.3 million (Q1/2020: Ŷ23.0 million). The main reason for this was the decline in order intake from all three regions (Asia, Europe and North America) in the prior year due to the pandemic. Following this decline in demand from the Chemical Industry since mid-2020, order intake recovered noticeably in the first quarter of 2021, amongst others, due to the conclusion of contracts for synthesis plants.

This expected temporary decline in sales also led to a reduction in EBITDA pre from Ŷ0.7 million in the prior-year quarter to minus Ŷ0.5 million in the reporting quarter. This corresponds to an EBITDA pre-margin of minus 2.6% (Q1/2020: 3.0%). Including depreciation and amortization of Ŷ0.4 million in the reporting quarter (Q1/2020: Ŷ0.5 million), EBIT came to minus Ŷ0.9 million (Q1/2020: minus Ŷ0.3 million).

Reporting segment Carbon Fibers (CF)

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƎƇƇ ƎƇƍ –Ɛƍ
EBITDA pre 1) ƇƉƏ ƇƐƉ ƉƋƐ
ƊƋ-
EBITDA pre-margin ƇƍƇ Ƈƈƌ points
Operating profit (EBIT) ƍƌ ƇƇ !ƇƐƐ

1) Q1/21 adjusted for the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.4 million and the release of restructuring provisions of Ŷ0.2 million. Q1/20 adjusted for the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.5 million and other material one-off effects of minus Ŷ1.0 million

At Ŷ81.1 million, sales in the reporting segment CF in the first quarter of 2021 were on the same level as in the prior year (currency adjusted: plus 4%) and slightly above expectations. The earnings situation in the first quarter of 2021 was characterized by the favorable Automotive business, which exceeded expectations and the prior-year figure. Sales in the Wind Energy market in the first quarter of 2021 were slightly below prior year. The Acrylic fibers business, on the other hand, is characterized by currently volatile raw material prices and shows higher sales due to higher raw material prices, which is attributable to the increased acrylonitrile price. Sales in the other customer industries declined slightly due to portfolio adjustments.

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). Aggregated sales of the At-Equity accounted investments increased by approximately 33% to Ŷ62.4 million in Q1/2021 (Q1/2020: Ŷ46.9 million, 100% values for companies). This sales revenue is not included in Group consolidated sales revenues.

EBITDA pre in the first quarter of 2021 improved significantly to Ŷ13.9 million compared with Ŷ10.3 million in the prior-year quarter due to the Ŷ3.7 million improvement in income from investments accounted for At-Equity. At Textile Fibers, the increase in raw material prices was largely passed on to customers, although there was no improvement in the gross margin. The EBITDA pre-margin in the reporting segment improved significantly to 17.1%, compared with 12.6% in the prior-year quarter.

Taking into account the decrease in depreciation and amortization of Ŷ4.1 million (Q1/2020: Ŷ5.7 million) due to the impairment loss recognized in the prior year, operating profit (EBIT) improved to Ŷ7.6 million in the first quarter of 2021 (Q1/2020: Ŷ1.1 million). This development was mainly due to the improved At-Equity result.

Reporting segment Composite Solutions (CS)

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƈƎƌ ƈƉƐ ƈƊƉ
EBITDA pre 1) ƇƎ –ƐƎ -
ƏƎ-
EBITDA pre-margin ƌƉ –ƉƋ points
Operating profit/loss (EBIT) ƐƉ –ƈƊ -

1) Q1/21 adjusted for the carry-forward of the purchase price allocation of SGL Composites AT totaling minus Ŷ0.2 million. Q1/20 adjusted for the carryforward of the purchase price allocation of SGL Composites AT totaling minus Ŷ0.1 million and other material one-off effects of minus Ŷ0.4 million

The reporting segment Composite Solutions (CS) is strongly affected by the Corona crisis due to its share of sales with the Automotive and Aerospace market segments, which are affected more than average. Due to the recovery in the Automotive market segment and the start of new automotive projects, the first quarter got off to an encouraging start. Revenues in the reporting segment CS increased significantly by 24% to Ŷ28.6 million in the first quarter of 2021 compared to the prior year's figure of Ŷ23.0 million (adjusted for currency effects: 26%).

EBITDA pre in the reporting segment CS improved to Ŷ1.8 million in the first quarter of 2021, compared to minus Ŷ0.8 million in the prior-year quarter. Accordingly, the EBITDA pre-margin in this reporting segment increased significantly to 6.3%, compared to minus 3.5% in the prior-year quarter. In addition to strong sales growth, this development was due to savings in connection with the restructuring of the reporting segment and individual improvement initiatives.

Including regular depreciation and amortization of Ŷ1.3 million (Q1/2020: Ŷ1.1 million), operating profit/loss (EBIT) improved to Ŷ0.3 million in the first quarter of 2021 (Q1/2020: minus Ŷ2.4 million).

Reporting segment Corporate

8

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue Ɗƈ ƍƊ –ƊƉƈ
EBITDA pre –ƋƇ –ƈƐ >-ƇƐƐ
Operating loss (EBIT) –ƎƉ –ƉƎ >-ƇƐƐ

As expected, sales revenue in the reporting segment Corporate in the first quarter of 2021 were significantly lower year-on-year (no currency effect). This was due to lower rental income as a result of the sale of land and buildings at the former site in Lemwerder in the prior quarter and lower services to divested businesses.

EBITDA pre in the reporting segment Corporate decreased significantly year-on-year to minus Ŷ5.1 million (Q1/2020: minus Ŷ2.0 million) despite savings in the central research department. This decrease is attributable on the one hand to higher consulting expenses, which will not be repeated to the same extent in subsequent quarters, and on the other hand the prior-year quarter still included positive earnings effects from final invoices for services to divested businesses. In addition to depreciation and amortization of Ŷ1.4 million (Q1/2020: Ŷ1.8 million), adjustments of Ŷ1.8 million were incurred in the first quarter of 2021 for restructuring, resulting in a reduction of EBIT to minus Ŷ8.3 million, compared to minus Ŷ3.8 million in the prior-year quarter.

Group business development

Condensed Consolidated Income Statement

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƈƊƇƋ ƈƊƌƎ –ƈƇ
Cost of sales –ƇƎƍƊ –ƇƏƇƉ ƈƐ
Gross profit ƋƊƇ ƋƋƋ –ƈƋ
Selling, administrative and R&D
expenses –ƊƇƏ –ƊƋƊ ƍƍ
Other operating income/expenses ƈƋ ƈƋ ƐƐ
Result from investments accounted
for At-Equity ƊƋ ƐƎ !ƇƐƐ
Operating profit (EBIT) pre ƇƏƈ ƇƉƊ ƊƉƉ
One-off effects/Non-recurring items –ƈƈ –ƍƐ ƌƎƌ
Operating profit (EBIT) ƇƍƐ ƌƊ !ƇƐƐ
EBITDA pre ƉƉƐ ƈƏƐ ƇƉƎ

Sales revenue of SGL Carbon fell by 2% (no currency effect) to Ŷ241.5 million (Q1/2020: Ŷ246.8 million), due to the developments described in the segment reporting. Gross margin remained stable at 22.4% (Q1/2020: 22.5%) in the reporting period. Accordingly, gross profit decreased slightly to Ŷ54.1 million in the reporting period from Ŷ55.5 million in the prior year period. As a result of the restructuring measures, selling, administration and R&D costs were reduced by 8% to Ŷ41.9 million (Q1/2020: Ŷ45.4 million), and thus at a lower rate than sales revenue. Savings in selling and R&D costs were faced by higher administrative costs. The increase in administrative costs is due to higher consulting expenses, which will not be incurred to this extent in the following quarters.

EBITDA pre in the reporting period increased by 14% to Ŷ33.0 million (Q1/2020: Ŷ29.0 million). This is due to the At-Equity result in the reporting segment CF, which has improved by Ŷ3.7 million, and the financial compensation at GS. Higher consulting expenses in the reporting segment Corporate had an opposite effect.

Effects, that are not included in EBITDA pre or EBIT pre in the reporting period mainly comprise of an insurance benefit of Ŷ2.0 million, restructuring expenses of Ŷ1.6 million and the additional amortization of identified assets and liabilities from purchase price allocations for the SGL Composites companies of minus Ŷ2.6 million (Q1/2020: minus Ŷ2.6 million). In the first quarter of the prior year, there were also other material one-off effects of minus Ŷ4.4 million. EBIT increased significantly to Ŷ17.0 million in the reporting period compared to Ŷ6.4 million in first quarter of 2020. In addition to the positive effects mentioned above the increase in EBIT also resulted from the decrease in depreciation by Ŷ1.8 million to Ŷ13.8 million (Q1/2020: Ŷ15.6 million).

Financial result

1st Quarter
Ŷ million 2021 2020 Change
Interest income ƐƇ Ɛƈ –ƋƐƐ
Interest expense –ƊƋ –ƊƊ –ƈƉ
Imputed interest convertible bonds –Ɛƍ –Ɛƍ ƐƐ
Imputed interest finance lease –ƐƊ –ƐƎ ƋƐƐ
Interest expense on pensions –Ɛƌ –ƇƐ ƊƐƐ
Interest expense, net –ƌƇ –ƌƍ ƏƐ
Amortization of refinancing costs –ƐƎ –Ɛƌ –ƉƉƉ
Foreign currency valuation of Group
loans ƐƋ –ƐƏ -
Other financial income/expenses ƐƐ –Ƈƈ -
Other financial result –ƐƉ –ƈƍ ƎƎƏ
Financialresult –ƌƊ –ƏƊ ƉƇƏ

Interest expenses include the cash-related 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 less interest expenses for pensions as well as lower impacts from imputed interest for liabilities, the net interest expense for the reporting period improved slightly from minus Ŷ6.7 million in the prior year to minus Ŷ6.1 million. In addition, the other financial result, especially relating to the foreign currency valuation of group loans, improved significantly year-on-year to minus Ŷ0.3 million (Q1/2020: minus Ŷ2.7 million). Primarily as a result of this valuation effect, financial result improved significantly to minus Ŷ6.4 million (Q1/2020: minus Ŷ9.4 million).

Condensed Consolidated Income Statement (continued)

1st Quarter
Ŷ million 2021 2020 Change
Operating profit (EBIT) ƇƍƐ ƌƊ !ƇƐƐ
Financial result –ƌƊ –ƏƊ ƉƇƏ
Result from continuing operations before
income taxes ƇƐƌ –ƉƐ -
Income tax expense –ƊƊ –Ƈƈ >-ƇƐƐ
Net result for the period ƌƈ –Ɗƈ -
Attributable to:
Non-controlling interests ƐƇ ƐƇ ƐƐ
Consolidated net result
(attributable to shareholders of the
parent company) ƌƇ –ƊƉ -
Earnings per share - basic and diluted
(in Ŷ) ƐƐƋ –ƐƐƊ -

Result before taxes and net result

Mainly due to the increased EBIT and improved financial result, the result before income taxes increased from minus Ŷ3.0 million in the prior year period to Ŷ10.6 million in the reporting period. The increase of income tax expense to Ŷ4.4 million (Q1/2020: Ŷ1.2 million) reflects the current tax expenses on the positive earnings contributions of Group companies.

Consolidated net result of the period amounted to Ŷ6.1 million compared to minus Ŷ4.3 million in the prior year period (after deduction of non-controlling interests in the reporting period and in the first quarter 2020 of Ŷ0.1 million, respectively).

ASSETS Ŷm 31. Mar. 21 31. Dec. 20 Change
Non-current assets ƌƌƋƍ ƌƋƎƍ ƇƇ
Current assets ƌƋƋƉ ƌƐƐƇ Əƈ
Total assets ƇƉƈƇƐ ƇƈƋƎƎ ƊƏ
EQUITY AND LIABILITIES Ŷm
Equity attributable to the
shareholders of the parent
company ƈƍƐƇ ƈƈƐƍ ƈƈƊ
Non-controlling interests ƇƈƋ Ƈƈƈ ƈƋ
Total equity ƈƎƈƌ ƈƉƈƏ ƈƇƉ
Non-current liabilities ƎƐƌƌ ƎƈƉƏ –ƈƇ
Current liabilities ƈƉƇƎ ƈƐƈƐ ƇƊƎ
Total equity and liabilities ƇƉƈƇƐ ƇƈƋƎƎ ƊƏ

Balance sheet structure

Total assets as of March 31, 2021 of Ŷ1,321.0 million increased by Ŷ62.2 million or 4.9% compared to December 31, 2020. The increase results in particular from the increase in liquidity as well as the rise in trade receivables and contract assets. In addition, currency effects from the stronger US dollar contributed Ŷ19.9 million to the increase in the balance sheet total.

Due to seasonal factors, capital expenditure in property, plant and equipment and intangible assets of Ŷ6.9 million in the first quarter of 2021 was well below the level of depreciation and amortization on non-current assets of Ŷ16.5 million (including amortization of Ŷ2.6 million from purchase price allocation). This led to a reduction in fixed assets. Positive currency translation effects of Ŷ11.7 million, particularly from the stronger US dollar, had more than offset this operational reduction in noncurrent assets and, in addition to the increase in investments accounted for using the equity method, led to an increase in non-current assets. In contrast, current assets increased significantly. The rise in trade receivables and contract assets of Ŷ23.5 million and in total liquidity of Ŷ26.8 million mainly contributed to the increase in current assets of Ŷ55.2 million.

The decrease in non-current liabilities is mainly attributable to the reduction in pension provisions by Ŷ29.2 million to Ŷ310.9 million. This decrease is mainly the result of the adjustment of the pension discount rates to the expected longterm interest environment in Germany by 0.4%-points up to 1.0% and in the US by 0.6%-points up to 3.2%. A new low-interest long-term bank loan of Ŷ13.0 million had a opposite effect. The increase in current liabilities resulted from the rise in trade payables and contract liabilities by Ŷ20.0 million and the rise in provisions of Ŷ9.7 million, in particular for accruals related to personnel costs.

Working Capital

Ŷ million 31. Mar. 21 31. Dec. 20 Change
Inventories ƈƋƐƊ ƈƊƍƉ ƇƉ
Trade accounts receivable and
contract assets ƈƐƋƌ ƇƎƈƇ ƇƈƏ
Trade payables and contract
liabilities –Əƍƌ –ƍƍƌ –ƈƋƎ
Working Capital ƉƋƎƊ ƉƋƇƎ ƇƏ

Working capital increased slightly by Ŷ6.6 million to Ŷ358.4 million as of March 31, 2021. The nominal increase results on one hand from the reported increase in trade receivables and contract assets by Ŷ23.5 million and inventories by Ŷ3.1 million. On the other hand, trade payables and contract liabilities increased by Ŷ20.0 million.

Increase in equity

As of March 31, 2021, equity attributable to the shareholders of the parent company increased by Ŷ49.4 million to Ŷ270.1 million (December 31, 2020: Ŷ220.7 million). The increase is attributable to the positive effects from the adjustment of interest rates for pension provisions to the increased interest rate environment in Germany und the US by Ŷ31.2 million. Positive foreign currency changes of Ŷ12.4 million and the positive net result of Ŷ6.1 million have contributed to the increase. Overall, the equity ratio as of March 31, 2021 increased significantly to 20.4% compared to 17.5% as of December 31, 2020.

Net financial debt

Ŷ million 31. Mar. 21 31. Dec. 20 Change
Carrying amount of current and
non-current financial liabilities Ɗƈƍƌ ƊƇƊƌ –ƉƇ
Remaining imputed interest for
the convertible bonds ƍƉ ƎƐ ƎƎ
Accrued refinancing cost Ƌƈ Ƌƍ ƎƎ
Total financial debt (nominal
amount) ƊƊƐƇ ƊƈƎƉ –ƈƎ
Liquidity ƇƌƎƌ ƇƊƇƎ ƇƎƏ
Net financial debt ƈƍƇƋ ƈƎƌƋ Ƌƈ

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 Ŷ30.8 million (December 31, 2020: Ŷ19.0 million) and the netted amounts of the remaining imputed interest components as well as the refinancing costs.

As of March 31, 2021, net financial debt decreased by Ŷ15.0 million or 5% to Ŷ271.5 million. This development is primarily attributable to the positive free cash flow of Ŷ24.1 million less interest payments of Ŷ7.7 million and less the repayments for IFRS 16 lease liabilities of Ŷ2.0 million.

Free cash flow

1st Quarter
Ŷ million 2021 2020 1)
Cash flow from operating activities
Operating profit (EBIT) ƇƍƐ ƌƊ
Depreciation and amortization of fixed
assets ƇƌƋ ƇƎƊ
Changes in working capital –ƌƇ –Ɛƍ
Miscellaneous items ƉƐ ƋƋ
Cash flow from operating activities ƉƐƊ ƈƏƌ
Cash flow from investing activities
Payments to purchase intangible assets
and property, plant & equipment –ƌƏ –ƍƏ
Proceeds from the sale of intangible
assets and property, plant & equipment Ɛƌ ƐƇ
Dividend payments from investments
accounted for At-Equity ƐƐ ƋƐ
Cash flow from investing activities - continuing
operations –ƌƉ –ƈƎ
Cash flow from investing activities -
discontinued operations - –ƈƉ
Cash flow from investing activities - continuing
and discontinued operations –ƌƉ –ƋƇ
Free cash flow 2)- continuing operations 24.1 26.8
Free cash flow 2) - discontinued operations 0.0 –2.3

1) Prior period adjusted, for details see section "Basis of Preparation"

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

Cash flow from operating activities improved by Ŷ0.8 million to Ŷ30.4 million due to the positive earnings performance in the first quarter of 2021, despite an increase in net working capital (net working capital remained almost unchanged in the first quarter of the prior year). Cash flow from investing activities decreased from minus Ŷ2.8 million in the prior year period to minus Ŷ6.3 million in the reporting period, mainly due to the cash inflows received in the prior year's period from a dividend of Ŷ5.0 million from the joint venture with Brembo, which, in 2021, will only be paid in the second quarter.

As a result of the above effects, free cash flow from continuing operations decreased slightly to Ŷ24.1 million in the reporting period (Q1/2020: Ŷ26.8 million).

There was no free cash flow from discontinued operations in the reporting period, compared to minus Ŷ2.3 million in the prior year period. In the prior year period, the figure primarily included a tax payment for prior years for the former reporting segment PP.

Employees

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

Headcount 31. Mar. 21 31. Dec. 20 Change
Graphite Solutions ƈƊƉƋ ƈƊƎƇ –ƇƏ
Process Technology ƋƋƈ ƋƎƇ –ƋƐ
Carbon Fibers ƇƇƉƐ ƇƇƊƍ –ƇƋ
Composite Solutions ƊƊƈ ƊƉƊ ƇƎ
Corporate ƇƎƍ ƇƏƊ –Ɖƌ
Total SGL Carbon ƊƍƊƌ ƊƎƉƍ –ƇƏ
Headcount 31. Mar. 21 31. Dec. 20 Change
Germany ƈƇƏƐ ƈƈƊƏ –ƈƌ
Europe excluding Germany ƇƉƐƋ ƇƉƈƎ –Ƈƍ
USA ƍƊƋ ƍƊƉ ƐƉ
Asia ƋƐƌ ƋƇƍ –ƈƇ
Total SGL Carbon ƊƍƊƌ ƊƎƉƍ –ƇƏ

Opportunities and Risks

Regarding existing opportunities and risks, we refer to the detailed statements in the annual report for the financial year which ended December 31, 2020. The implemented organizational rules and procedures were refined at the beginning of the current fiscal year and enhanced for measuring the risk-bearing capacity of the company in order to identify all major risk types and significant risks at an early stage and to take appropriate management measures.

In the Annual Report 2020, we already referred to the risks arising from the possible impact of the Corona virus on the economic environment. Following the severe economic slump in 2020, we continue to expect the global economy to recover significantly through the course of 2021 compared with the low level in 2020. This is reflected in increased expectations for demand, order intake and sales volumes in most market segments in 2021. However, currently there is still a high degree of uncertainty regarding the extent and timing of this recovery.

In the reporting segment Graphite Solutions, opportunities and risks essentially depend on how order intake develops compared to planning. In the Industrial Application market segment in particular, demand is still clearly restrained. As the reporting segment Graphite Solutions is characterized by a comparatively high proportion of fixed costs, there is a particular risk that cost structures can only be partially adjusted to demand or with a time lag. This may have a significant temporary negative impact on earnings.

Risks in the reporting segment Process Technology may arise from a weaker demand, which could also have a negative impact on price development.

In the reporting segment Carbon Fibers, the risk profile changed from market risks to production and raw material risks. Due to the sharp short-term increase in raw material prices for acrylonitrile, there is a risk that important customer applications in the textile sector could switch to polyester as a substitute material. This may have a significant temporary negative impact on earnings.

In the reporting segment Composite Solutions, opportunities and risks mainly depend on a successful ramp up of automotive projects.

Furthermore, the business risks described above may have a negative impact on the financial position. A possible increase in SGL's working capital, for example because the production pipeline cannot be adjusted in line with demand, would also have a negative impact. With liquidity of around Ŷ169 million at the end of the first quarter of 2021, we believe that we are well positioned in the current environment.

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

Outlook

We confirm our guidance for the fiscal year 2021. The following statements summarize the detailed report in the Annual Report 2020.

The overall economic situation remains dominated by Covid-19. In particular, a further wave of pandemics and an associated further decline in demand are not included in the current annual forecast.

Following the sharp economic downturn in 2020, we continue to expect fiscal year 2021 to be characterized by a moderate recovery. This includes the reported effect from the contract termination in the reporting segment Graphite Solutions, and therefore cannot be projected for the full year.

Group financial targets

Actual 2020 Outlook 20211)
ƏƇƏƊ ƏƈƐ WR ƏƍƐ
ƏƈƎ ƇƐƐ WR ƇƈƐ
ƊƋ% slight improvement
–ƈƐ WR Ɛ
at the level of depreciation
and amortization
ƋƋƎ DURXQG ƌƐ
ƏƉƈ ƈƐ
–ƇƉƈƏ

1) "Slight" indicates a variation of up to 10%; "significant" indicates a variation of more than 10%

2) Prior period adjusted, for details see section "Basis of Preparation"

Since the end of 2020, the Graphite Solutions reporting segment has been in the pandemic-related downturn mainly resulting from the market segment Industrial Applications, which was accompanied by a weak order entry. As reported, we were in a consolidation phase in the first quarter of 2021. As we have already been slowly ramping up production again since the beginning of 2021, we expect earnings to improve slightly over the course of the year due to increasing fixed cost absorption and savings from the restructuring.

In the reporting segment Process Technology, we are currently seeing an upturn in project inquiries from customers. As the sustainability of the rising order entry remains to be seen, we continue to expect sales revenue and EBITDA pre at prior-year level.

In 2020, the earnings situation in the reporting segment Carbon Fibers was characterized by the Automotive market segment, which developed positively despite the consequences of the pandemic and should also have a positive impact in fiscal 2021. We also expect raw material price increases in the other product areas at Carbon Fibers, some of which will be passed on to customers. We continue to expect sales revenue at the level of 2020, while EBITDA should improve slightly as a result of the restructuring measures initiated.

Sales revenue in the reporting segment Composite Solutions will increase significantly in 2021, as new automotive projects such as the production of battery cases made from composite materials are ramping up and there is also high demand for existing projects. In particular, the significantly increased sales volume as well as savings will contribute to a positive EBITDA pre.

In total, we were able to increase liquidity at the end of the first quarter of 2021 compared to year-end 2020. For fiscal year 2021, we continue to expect a capital expenditure budget on the level of depreciation and amortization. Due to the revival of business, we expect working capital to increase during the course of the year. Due to the adjusted presentation of interest paid and received in the cash flow from financing activities, we expect a positive free cash flow in the amount of the reclassified interest item of approx. Ŷ20 million.

Wiesbaden, May 12, 2021

SGL Carbon SE

The Board of Management

Consolidated Financial Statements

Consolidated Income Statement

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue ƈƊƇƋ ƈƊƌƎ –ƈƇ
Cost of sales –ƇƏƐƐ –ƇƏƎƊ Ɗƈ
Gross profit ƋƇƋ ƊƎƊ ƌƊ
Selling expenses –ƈƉƐ –ƈƋƐ ƎƐ
Research and development costs –ƍƏ –ƏƏ ƈƐƈ
General and administrative expenses –ƇƇƐ –ƇƐƋ –ƊƎ
Other operating income ƍƐ ƊƐ ƍƋƐ
Other operating expenses –ƈƋ –ƇƊ –ƍƎƌ
Result from investments accounted for At-Equity ƊƋ ƐƎ !ƇƐƐ
Restructuring expenses –Ƈƌ ƐƐ -
Operating profit ƇƍƐ ƌƊ !ƇƐƐ
Interest income ƐƇ Ɛƈ –ƋƐƐ
Interest expense –ƌƈ –ƌƏ ƇƐƇ
Other financial result –ƐƉ –ƈƍ ƎƎƏ
Result from continuing operations before income taxes ƇƐƌ –ƉƐ -
Income tax expense –ƊƊ –Ƈƈ >-ƇƐƐ
Net result for the period ƌƈ –Ɗƈ -
Thereof attributable to:
Non-controlling interests ƐƇ ƐƇ ƐƐ
Consolidated net result (attributable to shareholders of the parent company) ƌƇ –ƊƉ -
Earnings per share, basic and diluted, (inŶ) ƐƐƋ –ƐƐƊ -

Consolidated Statement of Comprehensive Income

1st Quarter
Ŷ million 2021 2020
Net result for the period ƌƈ –Ɗƈ
Items that may be reclassified subsequently to profit or loss
Cash flow hedges –ƐƉ ƐƐ
Currency translation 1) Ƈƈƌ Ɖƍ
Items that will not be reclassified subsequently to profit or loss
Actuarial gains/losses on pensions and similar obligations ƉƇƈ ƈƋƈ
Other comprehensive income ƊƉƋ ƈƎƏ
Comprehensive income ƊƏƍ ƈƊƍ
Thereof attributable to:
Non-controlling interests ƐƉ ƐƐ
Consolidated net result (attributable to shareholders of the parent company) ƊƏƊ ƈƊƍ

1) Includes tax effects of Ŷ0.0 million and minus Ŷ0.8 million in the first quarter of 2021 and 2020, respectively

Consolidated Balance Sheet

ASSETS Ŷm 31. Mar. 21 31. Dec. 20 Change
Goodwill ƈƇƋ ƈƐƍ ƉƏ
Other intangible assets ƉƐƇ Ɖƈƍ –ƎƐ
Property, plant and equipment ƋƊƇƍ ƋƉƎƉ Ɛƌ
Investments accounted for At-Equity ƌƐƌ Ƌƌƈ ƍƎ
Other non-current assets ƍƐ ƍƇ –ƇƊ
Deferred tax assets ƊƎ Ɖƍ ƈƏƍ
Total non-current assets ƌƌƋƍ ƌƋƎƍ ƇƇ
Inventories ƈƋƐƊ ƈƊƍƉ ƇƉ
Trade receivables and contract assets ƈƐƋƌ ƇƎƈƇ ƇƈƏ
Other receivables and other assets ƉƐƍ ƈƎƏ ƌƈ
Liquidity ƇƌƎƌ ƇƊƇƎ ƇƎƏ
Time deposits ƐƐ ƐƐ -
Cash and cash equivalents ƇƌƎƌ ƇƊƇƎ ƇƎƏ
Total current assets ƌƋƋƉ ƌƐƐƇ Əƈ
Total assets ƇƉƈƇƐ ƇƈƋƎƎ ƊƏ
EQUITY AND LIABILITIES Ŷm 31. Mar. 21 31. Dec. 20 Change
Issued capital ƉƇƉƈ ƉƇƉƈ ƐƐ
Capital reserves ƇƐƊƇƌ ƇƐƊƇƌ ƐƐ
Accumulated losses –ƇƐƎƊƍ –ƇƇƉƊƇ ƊƊ
Equity attributable to the shareholders of the parent company ƈƍƐƇ ƈƈƐƍ ƈƈƊ
Non-controlling interests ƇƈƋ Ƈƈƈ ƈƋ
Total equity ƈƎƈƌ ƈƉƈƏ ƈƇƉ
Provisions for pensions and similar employee benefits ƉƇƐƏ ƉƊƐƇ –Ǝƌ
Other provisions ƉƎƈ Ɖƌƍ ƊƇ
Interest-bearing loans ƊƈƉƈ ƊƇƐƏ ƉƐ
Other financial liabilities ƈƍƏ ƈƏƎ –ƌƊ
Other liabilities Ɗƍ Ɗƌ ƈƈ
Deferred tax liabilities Ƈƍ ƇƎ –Ƌƌ
Total non-current liabilities ƎƐƌƌ ƎƈƉƏ –ƈƇ
Other provisions ƍƏƎ ƍƐƇ ƇƉƎ
Current portion of interest-bearing loans ƊƊ Ɖƍ ƇƎƏ
Trade payables and contract liabilities Əƍƌ ƍƍƌ ƈƋƎ
Other financial liabilities ƇƐƉ Ƈƈƍ –ƇƎƏ
Other liabilities ƉƏƍ ƉƍƏ Ɗƍ
Total current liabilities ƈƉƇƎ ƈƐƈƐ ƇƊƎ
Total equity and liabilities ƇƉƈƇƐ ƇƈƋƎƎ ƊƏ

Consolidated Cash Flow Statement

1st Quarter
Ŷ million 2021 2020
Cash flow from operating activities
Operating profit (EBIT) ƇƍƐ ƌƊ
Depreciation and amortization of fixed assets ƇƌƋ ƇƎƊ
Changes in net working capital
Inventories ƌƊ ƇƏ
Trade receivables –ƉƐƏ ƋƉ
Trade payables and contract liabilities ƇƎƊ –ƍƏ
Changes in provisions, net ƇƐƐ –ƊƊ
Income taxes paid –ƈƐ –ƇƏ
Changes in other operating assets/liabilities –ƋƐ ƇƇƎ
Cash flow from operating activities ƉƐƊ ƈƏƌ
Cash flow from investing activities
Payments to purchase intangible assets and property, plant & equipment –ƌƏ –ƍƏ
Proceeds from the sale of intangible assets and property, plant & equipment Ɛƌ ƐƇ
Dividend payments from investments accounted for At-Equity ƐƐ ƋƐ
Cash flow from investing activities - continuing operations –ƌƉ –ƈƎ
Cash flow from investing activities and cash management activities - discontinued operations - –ƈƉ
Cash flow from investing activities and cash management activities - continuing and discontinued operations –ƌƉ –ƋƇ
Cash flow from financing activities
Proceeds from issuance of financial liabilities ƇƉƐ ƌƍ
Repayment of financial liabilities –ƇƇ –ƐƏ
Payments of principal portion of lease liabilities –ƈƐ –ƎƎ
Interest payments –ƍƍ –ƎƏ
Cash flow from financing activities ƈƈ –ƇƇƏ
Effect of foreign exchange rate changes ƐƋ ƐƇ
Net change in cash and cash equivalents ƈƌƎ Ƈƈƍ
Cash and cash equivalents at beginning of period ƇƊƇƎ ƇƉƉƇ
Cash and cash equivalents at end of period ƇƌƎƌ ƇƊƋƎ
Time deposits at end of period ƐƐ ƊƐ
Liquidity ƇƌƎƌ ƇƊƏƎ

Condensed Consolidated Statement of Changes in Equity

1st Quarter 2021
Equity attributable to
the shareholders of Non-controlling
Ŷ million the parent company interests Total equity
%DODQFH DV RI'HFHPEHU ƉƇ ƈƈƐƍ Ƈƈƈ ƈƉƈƏ
Net result for the period ƌƇ ƐƇ ƌƈ
Other comprehensive income ƊƉƉ Ɛƈ ƊƉƋ
Comprehensive income ƊƏƊ ƐƉ ƊƏƍ
%DODQFH DV RI0DUFK ƉƇ ƈƍƐƇ ƇƈƋ ƈƎƈƌ
Equity attributable to
the shareholders of Non-controlling
Ŷ million the parent company interests Total equity
Balance as of DeFHPEHU 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

Segment Information

SGL
Ŷ million GS PT CF CS Corporate Carbon
1st Quarter 2021
Sales revenue by customer industry
Mobility ƇƊƌ ƉƌƇ ƈƌƍ ƈƈ ƍƏƌ
Energy ƉƇƎ ƇƋƍ ƊƍƋ
Industrial Applications ƈƏƉ ƇƐƉ ƇƏ ƈƐ ƊƉƋ
Chemicals ƌƐ ƇƏƉ ƈƋƉ
Digitization ƈƌƌ ƈƌƌ
Textile Fibers ƇƏƐ ƇƏƐ
Total sales revenue 108.3 19.3 81.1 28.6 4.2 241.5
EBITDA pre 1) ƈƈƏ –ƐƋ ƇƉƏ ƇƎ –ƋƇ ƉƉƐ
Amortization/depreciation on intangible assets and property, plant and
equipment ƌƌ ƐƊ ƊƇ ƇƉ ƇƊ ƇƉƎ
Operating profit/loss (EBIT) pre 1) ƇƌƉ –ƐƏ ƏƎ ƐƋ –ƌƋ ƇƏƈ
One-off effects/Non-recurring items 1) ƈƐ ƐƐ –ƈƈ –Ɛƈ –ƇƎ –ƈƈ
Operating profit/loss (EBIT) ƇƎƉ –ƐƏ ƍƌ ƐƉ –ƎƉ ƇƍƐ
Capital expenditures 2) ƉƎ ƐƐ Ɛƍ ƇƏ ƐƋ ƌƏ
Working Capital 3) ƈƈƋƐ ƈƎƏ ƇƐƊƉ Ɖƍƈ –ƉƍƐ ƉƋƎƊ
SGL
Ŷ million GS PT CF CS Corporate Carbon
1st Quarter 2020
Sales revenue by customer industry
Mobility ƇƉƌ ƉƊƉ ƈƐƈ ƈƋ ƍƐƌ
Energy ƈƊƉ ƇƋƉ - ƉƏƌ
Industrial Applications ƊƇƎ ƇƊƌ ƈƎ ƊƏ ƌƊƇ
Chemicals ƍƌ ƈƉƐ - ƉƐƌ
Digitization ƈƊƊ - ƈƊƊ
Textile Fibers ƇƍƋ - ƇƍƋ
Total sales revenue 111.7 23.0 81.7 23.0 7.4 246.8
EBITDA pre 1) ƈƐƎ Ɛƍ ƇƐƉ –ƐƎ –ƈƐ ƈƏƐ
Amortization/depreciation on intangible assets and property, plant and
equipment ƌƋ ƐƋ Ƌƍ ƇƇ ƇƎ ƇƋƌ
Operating profit/loss (EBIT) pre 1) ƇƊƉ Ɛƈ Ɗƌ –ƇƏ –ƉƎ ƇƉƊ
One-off effects/Non-recurring items 1) –ƈƋ –ƐƋ –ƉƋ –ƐƋ ƐƐ –ƍƐ
Operating profit/loss (EBIT) ƇƇƎ –ƐƉ ƇƇ –ƈƊ –ƉƎ ƌƊ
Capital expenditures 2) Ɗƈ ƐƇ ƈƉ Ɛƍ Ɛƌ ƍƏ
Working Capital (31.12.) 3) ƈƐƉƈ ƈƏƋ ƇƇƊƎ ƉƋƎ –ƉƇƋ ƉƋƇƎ

1) Q1/21 adjusted for insurance benefit of Ŷ2.0 million, the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.6 million and restructuring expenses of minus Ŷ1.6 million. Q1/20 adjusted for insurance benefit of Ŷ0.1 million, the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.6 million and other material one-off effects of minus Ŷ4.5 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 and contract liabilities

Other Information

Sales revenue and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) pre by Reporting Segment

1st Quarter
Ŷ million 2021 2020 Change
Sales revenue
Graphite Solutions ƇƐƎƉ ƇƇƇƍ –ƉƐ
Process Technology ƇƏƉ ƈƉƐ –ƇƌƇ
Carbon Fibers ƎƇƇ ƎƇƍ –Ɛƍ
Composite Solutions ƈƎƌ ƈƉƐ ƈƊƉ
Corporate Ɗƈ ƍƊ –ƊƉƈ
SGL Carbon ƈƊƇƋ ƈƊƌƎ –ƈƇ
Ŷ million 2021 2020 Change
Earnings before interest, taxes,
depreciation and amortization
(EBITDA) pre 1)
Graphite Solutions ƈƈƏ ƈƐƎ ƇƐƇ
Process Technology –ƐƋ Ɛƍ -
Carbon Fibers ƇƉƏ ƇƐƉ ƉƋƐ
Composite Solutions ƇƎ –ƐƎ -
Corporate –ƋƇ –ƈƐ > -ƇƐƐ
SGL Carbon ƉƉƐ ƈƏƐ ƇƉƎ

1) Q1/21 adjusted for insurance benefit of Ŷ2.0 million, the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.6 million and restructuring expenses of minus Ŷ1.6 million. Q1/20 adjusted for insurance benefit of Ŷ0.1 million, the carry-forward of the purchase price allocations of the SGL Composites companies totaling minus Ŷ2.6 million and other material one-off effects of minus Ŷ4.5 million

Quarterly Sales revenue and EBITDA pre by Reporting Segment

2020 2021
Ŷ million Q1 Q2 Q3 Q4 Full Year Q1
Sales revenue
Graphite Solutions ƇƇƇƍ ƇƐƇƋ ƏƊƎ ƏƏƋ ƊƐƍƋ ƇƐƎƉ
Process Technology ƈƉƐ ƈƇƏ ƈƐƊ ƈƈƏ ƎƎƈ ƇƏƉ
Carbon Fibers ƎƇƍ ƌƊƏ ƍƌƎ ƎƐƋ ƉƐƉƏ ƎƇƇ
Composite Solutions ƈƉƐ ƇƌƋ ƈƇƈ ƈƍƏ ƎƎƌ ƈƎƌ
Corporate ƍƊ ƊƏ ƇƉƎ ƋƇ ƉƇƈ Ɗƈ
SGL Carbon ƈƊƌƎ ƈƐƏƍ ƈƈƍƐ ƈƉƋƏ ƏƇƏƊ ƈƊƇƋ
2020 2021
EBITDA pre 1) Q1 Q2 Q3 Q4 Full Year Q1
Graphite Solutions ƈƐƎ ƇƋƊ ƇƉƉ ƇƉƌ ƌƉƇ ƈƈƏ
Process Technology Ɛƍ ƐƊ Ɛƍ Ƈƌ ƉƊ –ƐƋ
Carbon Fibers ƇƐƉ Ƌƈ ƇƈƏ ƇƉƐ ƊƇƊ ƇƉƏ
Composite Solutions –ƐƎ –Ɗƍ ƐƋ ƐƉ –Ɗƍ ƇƎ
Corporate –ƈƐ –ƉƉ –Ƈƈ –ƉƏ –ƇƐƊ –ƋƇ
SGL Carbon ƈƏƐ ƇƉƐ ƈƌƈ ƈƊƌ ƏƈƎ ƉƉƐ

1) One-off effects and non-recurring items in the total amount of minus Ŷ113.2 million in 2020 und minus Ŷ2.2 million in the first quarter 2021

Quarterly Consolidated Income Statement

2020 2021
Ŷ million Q1 Q2 Q3 Q4 Full Year Q1
Sales revenue ƈƊƌƎ ƈƐƏƍ ƈƈƍƐ ƈƉƋƏ ƏƇƏƊ ƈƊƇƋ
Cost of sales –ƇƏƇƉ –ƇƍƉƇ –ƇƎƊƍ –ƈƐƐƎ –ƍƊƏƏ –ƇƎƍƊ
Gross profit ƋƋƋ Ɖƌƌ ƊƈƉ ƉƋƇ ƇƌƏƋ ƋƊƇ
Selling, administrative, R&D and other operating income/expense –ƊƈƏ –ƊƈƏ –ƉƎƊ –ƉƍƉ –ƇƌƇƋ –ƉƏƊ
Result from investments accounted for At-Equity ƐƎ Ƈƌ ƉƋ Ƌƌ ƇƇƋ ƊƋ
Operating profit/loss (EBIT) pre ƇƉƊ –Ɗƍ ƍƊ ƉƊ ƇƏƋ ƇƏƈ
One-off effects/Purchase price allocation effects/Impairment losses –ƍƐ ƊƐ ƇƉƈ –Əƌƈ –ƎƌƐ –Ɛƌ
Restructuring expenses –ƇƋ –ƈƋƍ –ƈƍƈ –Ƈƌ
Operating profit/loss (EBIT) ƌƊ –Ɛƍ ƇƏƇ –ƇƇƎƋ –ƏƉƍ ƇƍƐ
Financial result –ƏƊ –ƌƊ –ƍƌ –ƌƐ –ƈƏƊ –ƌƊ
Result from continuing operations before income taxes –ƉƐ –ƍƇ ƇƇƋ –ƇƈƊƋ –ƇƈƉƇ ƇƐƌ
Income tax expense –Ƈƈ –ƈƈ –ƇƇ –ƈƋ –ƍƐ –ƊƊ
Result from continuing operations –Ɗƈ –ƏƉ ƇƐƊ –ƇƈƍƐ –ƇƉƐƇ ƌƈ
Result from discontinued operations, net of income taxes ƐƐ –ƐƇ ƐƐ ƐƎ Ɛƍ ƐƐ
Net result for the period –Ɗƈ –ƏƊ ƇƐƊ –Ƈƈƌƈ –ƇƈƏƊ ƌƈ
Thereof attributable to:
Non-controlling interests ƐƇ ƐƇ ƐƋ ƈƇ ƈƎ ƐƇ
Consolidated net result (attributable to shareholders of the parent
company)
–ƊƉ –ƏƋ ƏƏ –ƇƈƎƉ –ƇƉƈƈ ƌƇ

Financial Calendar 2021

May 21, 2021

Annual General Meeting

August 12, 2021

  • Report on the First Half Year 2021
  • Conference call for investors and analysts

November 11, 2021

  • Statement on the Nine Months 2021
  • 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: [email protected] 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 Graphite Solutions (GS), Process Technology (PT), Carbon Fibers (CF) and Composite Solutions (CS) businesses, expected customer demand, expected industry trends and expected trends in the business environment, statements related to SGL Carbon's cost savings programs. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about SGL Carbons's businesses and future financial results, and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, changes in political, economic, legal and business conditions, particularly relating to SGL Carbon's main customer industries, competitive products and pricing, the ability to achieve sustained growth and profitability in SGL Carbon's Graphite Solutions (GS), Process Technology (PT), Carbon Fibers (CF) and Composite Solutions (CS) businesses, the impact of any manufacturing efficiencies and capacity constraints, widespread adoption of carbon fiber products and components in key end-markets of SGL Carbon, including the automotive and aerospace industries, the inability to execute additional cost savings or restructuring measures, availability of raw materials and critical manufacturing equipment, trade environment, changes in interest rates, exchange rates, tax rates, and regulation, available cash and liquidity, SGL Carbon's ability to refinance its indebtedness, development of the SGL Carbon pension obligations, share price fluctuation may have on SGL Carbon's financial condition and results of operations and other risks identified in SGL Carbon's financial reports. These forward-looking statements are made only as of the date of this document. SGL Carbon does not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

SGL Carbon SE Head Office | Investor Relations Söhnleinstrasse 8 65201 Wiesbaden/Germany Phone +49 611 6029-103 Fax +49 611 6029-101 [email protected] www.sglcarbon.com

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