AI Terminal
SGL CARBON SE
Quarterly Report • Aug 8, 2024
389_10-q_2024-08-08_ef1ef7df-6358-4f26-8ef8-e5919e87cd1c.pdf
Quarterly Report
Open in ViewerOpens in native device viewer
Report on the first half year 2024
Highlights H1 2024
Sales in the first half of 2024 decreased by $4.0 \%$ to $€ 538.0$ million (currency and portfolio-adjusted minus 2.2\%) compared to the same period of the previous year due to the decline in demand in the Carbon Fibers business unit and the termination of a project in Composite Solutions.
Adjusted EBITDA down slightly by $1.7 \%$ to $€ 86.5$ million compared to the first half of the previous year due to weaker business development in Carbon Fibers and Composite Solutions. Positive price effects in the Graphite Solutions business unit and a very good business performance in Process Technology kept adjusted EBITDA almost stable. Adjusted EBITDA margin increases by $0.4 \%$ points to $16.1 \%$.
Equity ratio increases compared to the end of the last financial year from $41.1 \%$ to $44.3 \%$; net debt increases slightly by $3.1 \%$ to $€ 119.4$ million.
Confirmation of the annual outlook for 2024.
Financial Highlights H1 2024
| 1st Half Year | |||
|---|---|---|---|
| € million | 2024 | 2023 | Change |
| Sales revenue | 538.0 | 560.5 | $-4.0 \%$ |
| EBITDA pre ${ }^{1)}$ | 86.5 | 88.0 | $-1.7 \%$ |
| EBITDA pre-margin | $16.1 \%$ | $15.7 \%$ | $+0.4 \%$-points |
| EBIT | 55.9 | 12.0 | $>100.0 \%$ |
| Consolidated net result (attributable to shareholders of the parent company) | 29.4 | $-10.0$ | - |
| Free cash flow | 12.4 | 20.1 | $-38.3 \%$ |
| € million | Jun 30, 24 | Dec 31, 23 | Change |
| Total assets | 1,479.1 | 1,472.6 | $0.4 \%$ |
| Equity (attributable to the shareholders of the parent company) | 655.4 | 605.3 | $8.3 \%$ |
| Net financial debt | 119.4 | 115.8 | $3.1 \%$ |
| Return on capital employed (ROCE) ${ }^{2)}$ | $11.3 \%$ | $11.3 \%$ | $0.0 \%$-points |
| Leverage ratio ${ }^{3)}$ | 0.7 | 0.7 | $0.0 \%$-points |
| Equity ratio | 44.3\% | 41.1\% | $+3.2 \%$-points |
| 1st Half Year | Financial Year | ||
|---|---|---|---|
| Share price in $€$ | 2024 | 2023 | Change |
| High | 7.53 | 9.36 | $-19.6 \%$ |
| Low | 5.85 | 5.72 | $2.3 \%$ |
| Closing price at end of period | 6.34 | 6.51 | $-2.6 \%$ |
${ }^{1)}$ Adjusted for one-off effects and non-recurring items. For more details, please refer to the business development section
${ }^{2)}$ EBIT pre 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)
${ }^{3)}$ Net financial debt divided by EBITDA pre of the last 12 months
Content
Highlights H1 2024 ..... 2
Financial Highlights H1 2024 ..... 3
Interim Group Management Report ..... 5
Key Events of the Business Development ..... 5
Business Development ..... 6
Group Business Development ..... 6
Balance Sheet Structure ..... 10
Employees ..... 12
Segment Reporting ..... 12
Opportunities and Risks ..... 15
Outlook ..... 15
Condensed Interim Financial Statements ..... 17
Notes to the Condensed Interim Financial Statements ..... 22
Responsibility Statement ..... 30
Other Information ..... 31
Interim Group Management Report
Key Events of the Business Development
SGL Carbon evaluates strategic options for the business unit Carbon Fibers
The Board of Management of SGL Carbon SE decided on February 23, 2024, to evaluate various strategic options for the second largest business unit Carbon Fibers. These also include a possible partial or complete divestment of the business unit. A structured transaction process has been initiated. The Carbon Fibers sales share in H1 2024 corresponded to 20.5\% of SGL Carbon's consolidated sales (H1 2023: 22.3\%). EBITDA pre for the business unit (excluding the pro rata At-Equity result of Brembo SGL Carbon Ceramic Brakes) amounted to minus $€ 12.3$ million in the reporting period (H1 2023: minus $€ 4.0$ million). Due to the persistently unsatisfactory demand from wind industry customers and the associated deterioration in the earnings situation at Carbon Fibers, the Board of Management initiated a restructuring program in this business unit to achieve material and personnel savings in order to improve earnings. In the first half year 2024, a total of $€ 2.2$ million was recognized as restructuring expenses in the consolidated income statement.
Discontinuation of R\&D activities and closure of laboratory of Battery Solutions (Meitingen) - Reporting segment Graphite Solutions
In July 2024, SGL Carbon decided to discontinue the development activities of the Battery Solutions business line of the Graphite Solutions reporting segment and to close the laboratory in Meitingen due to a lack of prospects for commercial success of the development project. Battery Solutions were involved in the development and industrialization of graphite anode materials (GAM) made of synthetic graphite for use in lithium-ion batteries. The discontinuation of R\&D activities and the closure of the Battery Solution laboratory led to an impairment of fixed assets and inventories totaling $€ 2.7$ million in the first half-year financial statements. In addition, costs for personnel adjustments of $€ 1$ to 2 million will be incurred in the third quarter and reported as restructuring expenses.
Business Development
Group Business Development
Condensed consolidated income statement
| 1st Half Year | |||
|---|---|---|---|
| € million | 2024 | 2023 | Change |
| Sales revenue | $\mathbf{5 3 8 . 0}$ | $\mathbf{5 6 0 . 5}$ | $\mathbf{- 4 . 0 \%}$ |
| Cost of sales | -407.4 | -436.4 | -6.6\% |
| Gross profit | $\mathbf{1 3 0 . 6}$ | $\mathbf{1 2 4 . 1}$ | $\mathbf{5 . 2 \%}$ |
| Selling, administrative and R\&D expenses | -81.8 | -84.8 | -3.5\% |
| Other operating income/expenses | 3.0 | 8.6 | -65.1\% |
| Result from investments accounted for At-Equity | 7.7 | 11.0 | -30.0\% |
| EBIT pre | $\mathbf{5 9 . 5}$ | $\mathbf{5 8 . 9}$ | $\mathbf{1 . 0 \%}$ |
| One-off effects/Non-recurring items | -3.6 | -46.9 | -92.3\% |
| EBIT | $\mathbf{5 5 . 9}$ | $\mathbf{1 2 . 0}$ | $>\mathbf{1 0 0 . 0 \%}$ |
Weak demand in Carbon Fibers and project termination in Composite Solutions lead to slight decline in sales
SGL Carbon generated consolidated sales revenue of €538.0 million in the first half of 2024 (H1 2023: €560.5 million). This corresponds to a slight decline of $€ 22.5$ million or minus 4.0\% compared to the prior-year period. Adjusted for the activities in Gardena, USA and Pune, India, which were sold in 2023, as well as currency effects, the decline in sales was slightly lower at $€ 10.1$ million or $2.2 \%$.
The largest business unit, Graphite Solutions, was able to further increase its share of Group sales from $50.1 \%$ in the first half of the previous year to $52.8 \%$. This is primarily due to the positive sales trend with customers from the semiconductor industry. Due to continued weak demand from the wind industry, Carbon Fibers' share of sales fell to 20.5\% (previous year: 22.3\%). The Composite Solutions and Process Technology business units also developed differently, contributing $12.4 \%$ (previous year: $14.2 \%$ ) and $13.0 \%$ (previous year: $11.5 \%$ ) respectively to Group sales. Sales in the Corporate segment fell to $1.3 \%$ (previous year: $1.9 \%$ ).
Sales revenue by reporting segment H1 2024 (H1 2023)
Group sales were primarily impacted by the persistently weak demand in almost all market segments in the Carbon Fibers business unit, whose sales fell by $12.0 \%$ or $€ 15.0$ million compared to H1 2023. In the Composite Solutions business unit, the termination of a major supply contract with an automotive customer led to a year-on-year decline in sales of $€ 12.7$ million or $16.0 \%$. Sales in the Corporate reporting segment also declined by $€ 3.9$ million (minus 36.1\%). In contrast, sales in the Graphite Solutions ( $€+3.6$ million or $1.3 \%$ ) and Process Technology ( $€+5.5$ million or $8.5 \%$ ) business units developed positively compared to the same period of the previous year, but were unable to fully compensate for the decline in sales in the other segments described above.
The decline in Group sales is mainly due to negative volume effects in the Carbon Fibers and Composite Solutions business units. Positive price effects in the Graphite Solutions and Process Technology business units were largely offset by negative product mix effects in the other two business units.
Looking at SGL Carbon's individual market segments, sales with customers from the semiconductor industry continued to increase. This also led to the market segment Digitization now representing $26.3 \%$ of Group sales (H1 2023: 22.3\%). At 24.0\% (H1 2023: 26.0\%), the Mobility market segment is the second largest contributor to revenue, followed by the Industrial Applications segment with 21.3\% (H1 2023: 22.9\%). Sales with customers from the chemical industry developed positively with their share of Group sales increasing from
$13.8 \%$ to $15.3 \%$. The other two market segments, Energy and Textile Fibers, were unable to escape the weak economic environment and recorded significant declines in some cases. This also affected the business with graphite anode material for the battery industry.
Further details on the sales performance of the business units can be found in the segment reporting in these interim financial statements.
Group sales development
Earnings situation of the Group
Earnings development - EBITDA pre
Despite the slight decline in sales, SGL Carbon's adjusted EBITDA of €86.5 million after six months in 2024 remained almost at the level of the prior-year period (H1 2023: €88.0 million; minus $1.7 \%$ ). Accordingly, the adjusted EBITDA margin improved year-on-year from $15.7 \%$ to $16.1 \%$.
The Graphite Solutions business unit accounted for the largest share of the SGL Carbon Group's adjusted EBITDA. After $€ 65.1$ million in the first half of 2023, adjusted EBITDA of $€ 72.2$ million was achieved in the reporting period. This corresponds to an increase of $€ 7.1$ million or $10.9 \%$ which is particularly due to an improved product mix. The positive earnings trend is also continuing in the Process Technology business unit. Process Technology significantly increased adjusted EBITDA by $€ 4.1$ million to $€ 16.0$ million in the first half of
2024, which corresponds to an increase of $34.5 \%$ (H1 2023: €11.9 million). In contrast, the adjusted EBITDA of Carbon Fibers decreased from €6.1 million in H1 2023 to minus €4.4 million in the reporting period. This is particularly due to lower prices (also due to lower raw material prices for acrylonitrile) as well as lower volumes and the associated lower absorption of fixed costs. The termination of a project-related supply contract with an automotive customer of Composite Solutions had a negative impact on both sales and adjusted EBITDA. Adjusted EBITDA fell by $34.1 \%$ to $€ 8.1$ million (H1 2023: €12.3 million) compared to the first half of the previous year. Further information on the development of adjusted EBITDA in all four operating business units can be found in the segment reporting in this half-year report.
The income statement of SGL Carbon shows the following developments:
- The cost of sales fell by $6.6 \%$, and therefore more than the decline in sales, to $€ 407.4$ million (H1 2023: €436.4 million), mainly due to lower factor costs (especially raw materials and energy) at Graphite Solutions. The gross margin improved accordingly from $22.1 \%$ in H1 2023 to $24.3 \%$ in the reporting period.
- Selling, administrative and R\&D costs decreased by $3.5 \%$ to $€ 81.8$ million, which is almost in line with the sales trend. Selling expenses decreased in particular due to lower delivery volumes in the business unit Carbon Fibers.
- The balance of other operating income and expenses more than halved year-on-year from $€ 8.6$ million to $€ 3.0$ million in H1 2024. This was due to lower government grants totaling €2.8 million (H1 2023: €7.3 million) as a result of the expiry of the electricity price cap in Germany.
- The result from investments accounted for At-Equity decreased to $€ 7.7$ million (H1 2023: $€ 11.0$ million), primarily due to contractually agreed price reductions and increased factor costs at BSCCB.
The reconciliation of adjusted EBITDA to EBIT is shown in the following table:
| 1st Half Year | |||
|---|---|---|---|
| $€$ million | $\mathbf{2 0 2 4}$ | $\mathbf{2 0 2 3}$ | Change |
| EBITDA pre | $\mathbf{8 6 . 5}$ | $\mathbf{8 8 . 0}$ | $\mathbf{- 1 . 7 \%}$ |
| Depreciation and amortization | -27.0 | -29.1 | -7.2\% |
| EBIT pre | $\mathbf{5 9 . 5}$ | $\mathbf{5 8 . 9}$ | $\mathbf{1 . 0 \%}$ |
| One-off effects/Non-recurring items | -3.6 | -46.9 | -92.3\% |
| EBIT | $\mathbf{5 5 . 9}$ | $\mathbf{1 2 . 0}$ | $>\mathbf{1 0 0 . 0 \%}$ |
One-off effects and non-recurring items that are not included in adjusted EBITDA or adjusted EBIT amounted to a total of minus $€ 3.6$ million (H1 2023: minus $€ 46.9$ million). The one-off effects and non-recurring items in the first half of 2024 resulted primarily from the restructuring measures initiated in the Carbon Fibers business unit of $€ 2.2$ million and from an impairment of assets in the Battery Solutions business line of $€ 2.7$ million resulting from the discontinuation of research activities for graphite anode material. An offsetting positive effect of $€ 3.1$ million resulted from the partial reversal of the provision for the former Griesheim site, as the planned dismantling costs were lower than expected. In addition, the effects from the amounts capitalized as part of the purchase price allocations of the SGL Composites companies of minus €0.6 million (H1 2023: minus €0.6 million) and one-off effects of minus $€ 1.2$ million for consulting expenses from a strategy project (onetime effects H1 2023: minus $€ 1.6$ million) had a negative impact. In the same period of the previous year, the impairment of $€ 44.7$ million on the assets of the Carbon Fibers business unit also had a significant impact on the one-off effects/non-recurring items to be adjusted.
In total, EBIT improved to $€ 55.9$ million in the reporting period (H1 2023: $€ 12.0$ million), an increase by a factor of almost five. It should be noted that EBIT in the same period of the previous year was disproportionately impacted by the impairment on the assets of Carbon Fibers.
Financial result burdened by higher interest rates
| 1st Half Year | |||
|---|---|---|---|
| € million | 2024 | 2023 | Change |
| Interest income | 2.7 | 1.9 | $42.1 \%$ |
| Interest on financial liabilities and other interest expense | $-9.5$ | $-9.4$ | $1.1 \%$ |
| Imputed interest convertible bond | $-2.8$ | $-1.7$ | $64.7 \%$ |
| Imputed interest on lease liabilities/contract liabilities | $-3.6$ | $-1.2$ | $>100.0 \%$ |
| Interest component of additions to provisions for pensions | $-3.4$ | $-3.4$ | $0.0 \%$ |
| Interest expense, net | $-16.6$ | $-13.8$ | $20.3 \%$ |
| Amortization of refinancing costs | $-0.8$ | $-1.1$ | $-27.3 \%$ |
| Foreign currency valuation of intercompany loans | $-0.1$ | $-0.7$ | $-85.7 \%$ |
| Other operating expense/income | 0.2 | $-0.2$ | - |
| Other financial result | $-0.7$ | $-2.0$ | $-65.0 \%$ |
| Financial result | $-17.3$ | $-15.8$ | $9.5 \%$ |
The financial result amounted to minus $€ 17.3$ million in the first half of 2024 and deteriorated by $9.5 \%$ compared to the same period of the previous year. This was in particular due to the higher negative interest result of minus $€ 16.6$ million (H1 2023: minus $€ 13.8$ million) as a result of increased expenses for the imputed interest of customer deposits recognized as contract liabilities and the higher imputed interest component for the convertible bonds. Higher interest income from the investment of cash and cash equivalents at short-term interest rates could not fully compensate for the increase in interest expenses for financial liabilities. The other financial result improved significantly to minus $€ 0.7$ million due to better foreign currency valuation effects (H1 2023: minus $€ 2.0$ million).
Condensed consolidated income statement (continued)
| € million | 2024 | 1st Half Year | |
| 2023 | Change | ||
| EBIT | 55.9 | 12.0 | $>100.0 \%$ |
| Financial result | -17.3 | -15.8 | $9.5 \%$ |
| Result before income taxes | 38.6 | -3.8 | - |
| Income tax expense | -8.8 | -5.9 | $49.2 \%$ |
| Net result for the period | 29.8 | -9.7 | - |
| Attributable to: | |||
| Non-controlling interests | 0.4 | 0.3 | $33.3 \%$ |
| Consolidated net result (attributable to shareholders of | |||
| the parent company) | 29.4 | -10.0 | - |
| Earnings per share - basic and diluted (in $€$ ) | 0.24 | -0.08 | - |
Earnings before income taxes and consolidated net result
Despite the slight deterioration in the financial result (minus $€ 1.5$ million), the significant improvement in EBIT ( $€+43.9$ million) in the first half of 2024 led to a significant increase in earnings before taxes of $€ 38.6$ million (H1 2023: minus $€ 3.8$ million). Income tax expenses amounted to $€ 8.8$ million (H1 2023: $€ 5.9$ million) and resulted from the increased positive operating earnings contributions of some Group companies, particularly in China.
After taxes, consolidated net result for the first half of 2024 amounted to $€ 29.4$ million compared to minus $€ 10.0$ million in the same period of the previous year. Accordingly, earnings per share were clearly positive at $€ 0.24$ in the first half of 2024 (H1 2023: minus $€ 0.08$ ).
Balance Sheet Structure
| ASSETS € million | Jun 30, 24 | Dec 31, 23 | Change |
|---|---|---|---|
| Non-current assets | 738.5 | 715.6 | $3.2 \%$ |
| Current assets | 740.6 | 757.0 | $-2.2 \%$ |
| Total assets | 1,479.1 | 1,472.6 | 0.4\% |
EQUITY AND LIABILITIES € million
| Equity attributable to the shareholders of the parent company |
655.4 | 605.3 | $8.3 \%$ |
|---|---|---|---|
| Non-controlling interests | 9.5 | 9.6 | $-1.0 \%$ |
| Total equity | 664.9 | 614.9 | $8.1 \%$ |
| Non-current liabilities | 556.0 | 583.3 | $-4.7 \%$ |
| Current liabilities | 258.2 | 274.4 | $-5.9 \%$ |
| Total equity and liabilities | $\mathbf{1 , 4 7 9 . 1}$ | $\mathbf{1 , 4 7 2 . 6}$ | $\mathbf{0 . 4 \%}$ |
Total assets increased slightly by $€ 6.5$ million or $0.4 \%$ to $€ 1,479.1$ million as of June 30, 2024, compared to December 31, 2023. The increase in total assets is in particular due to capital expenditure ( $€ 44.2$ million) exceeding regular depreciation on fixed assets ( $€ 27.0$ million), higher trade receivables and contract assets ( $€+16.2$ million) and positive currency effects of $€ 17.3$ million, particularly from the stronger US dollar. In contrast, investments accounted for At-Equity decreased by $€ 2.6$ million due to the dividend from Brembo SGL Carbon Ceramic Brakes.
Non-current liabilities decreased by $€ 27.3$ million, mainly due to the repayment of $€ 25.0$ million of the Term Loan Facility.
The decrease in current liabilities by $€ 16.2$ million is due on the one hand to the reduction in trade payables, mainly as a result of the decline in production activities at Carbon Fibers. On the other hand, other provisions decreased due to the payment of the STI and LTI plan, which was partially offset by the addition to the provision for outstanding vacation.
Working Capital
| € million | Jun 30, 24 | Dec 31, 23 | Change |
|---|---|---|---|
| Inventories | 374.7 | 373.6 | $0.3 \%$ |
| Trade receivables and contract assets | 167.1 | 150.9 | $10.7 \%$ |
| Trade payables and contract liabilities | -218.4 | -218.5 | $0.0 \%$ |
| Working Capital | $\mathbf{3 2 3 . 4}$ | $\mathbf{3 0 6 . 0}$ | $\mathbf{5 . 7 \%}$ |
Working capital increased to $€ 323.4$ million ( $+5.7 \%$ ) as of June 30, 2024, mainly due to higher trade receivables and contract assets ( $€ 16.2$ million). A slight increase in the existing factoring volume had the opposite effect in this context. In addition to Graphite Solutions, the increase in trade receivables relates primarily to Carbon Fibers and reflects a higher sales volume due to inventory reduction in the first half of 2024 compared to a very weak fourth quarter of 2023. The unchanged trade payables reflect the reduction in production activities at Carbon Fibers and were offset by the increase in customer deposits at Graphite Solutions.
Increase in equity
As of June 30, 2024, the equity attributable to shareholders of the parent company increased by $€ 50.1$ million ( $+8.3 \%$ ) to $€ 655.4$ million (December 31, 2023: $€ 605.3$ million). The increase is mainly due to the positive consolidated net result of $€ 29.4$ million. There were also positive effects from the revaluation of pension provisions in Germany and the USA totaling $€ 10.7$ million as well as currency effects, which led to an increase of $€ 11.4$ million. As a result, the equity ratio increased to $44.3 \%$ as of June 30, 2024 (December 31, 2023: $41.1 \%$ ).
Net financial debt/Free cash flow
Net financial debt
Net financial debt
| € million | Jun 30, 24 | Dec 31, 23 | Change |
|---|---|---|---|
| Carrying amount of current and non-current financial liabilities | 259.8 | 282.8 | $-8.1 \%$ |
| Remaining imputed interest for the convertible bonds | 25.0 | 27.8 | $-10.1 \%$ |
| Accrued refinancing cost | 3.9 | 4.6 | $-15.2 \%$ |
| Total financial debt (nominal amount) | 288.7 | 315.2 | $-8.4 \%$ |
| Time deposits | 65.0 | 65.0 | 0.0\% |
| Cash and cash equivalents | 104.3 | 134.4 | $-22.4 \%$ |
| Total liquidity | 169.3 | 199.4 | $-15.1 \%$ |
| Net financial debt | 119.4 | 115.8 | 3.1\% |
SGL Carbon's net financial debt increased slightly by $€ 3.6$ million ( $+3.1 \%$ ) to $€ 119.4$ million as of June 30, 2024. This increase is mainly due to the positive free cash flow of $€ 12.4$ million less interest payments of $€ 11.2$ million and lease payments of $€ 4.3$ million.
Free cash flow
| 1st Half Year | ||
|---|---|---|
| € million | 2024 | 2023 |
| EBIT | 55.9 | 12.0 |
| Depreciation/amortization expense | 27.0 | 29.1 |
| Impairment loss | 44.7 | |
| Changes in working capital | -16.7 | -10.4 |
| Changes in provisions | -14.2 | -16.1 |
| Miscellaneous items | -5.5 | -14.5 |
| Cash flow from operating activities | 46.5 | 44.8 |
| Payments to purchase intangible assets and property, plant \& equipment | -44.2 | -40.4 |
| Proceeds from the sale of intangible assets and property, plant \& | ||
| equipment | 0.1 | 8.2 |
| Dividend payments from investments accounted for At-Equity | 10.0 | 7.5 |
| Cash flow from investing activities | -34.1 | -24.7 |
| Free cash flow | 12.4 | 20.1 |
Cash flow from operating activities reflects the positive operating earnings performance in the first six months of 2024, and improved by $€ 1.7$ million from $€ 44.8$ million in the same period of the previous year to $€ 46.5$ million.
Capital expenditure for property, plant and equipment (and intangible assets) increased from $€ 40.4$ million in the previous period to $€ 44.2$ million in H1 2024. As in the previous period, the high payments were financed from cash flow from operating activities. Free cash flow was clearly positive at $€ 12.4$ million (prior-year period: $€ 20.1$ million). The $€ 2.5$ million year-on-year increase in dividend payments from the joint venture Brembo SGL Carbon Ceramic Brakes had an additional effect. The prior-year period also included cash inflows from the sale of the operating activities at the Gardena site (USA) and India.
Adjusted for the positive effect from the purchase price payment for Gardena and India in H1 2023 of $€ 8.2$ million, free cash flow for the reporting period improved slightly from $€ 11.9$ million to $€ 12.4$ million, also due to the positive business performance.
Employees
On June 30, 2024, the number of employees worldwide was 4,654 (December 31, 2023: 4,808 ), a decrease compared to the previous year. Due to the restructuring measures initiated at Carbon Fibers, the number of employees was reduced by around 70 in the first half of 2024, particularly at the Muir of Ord site (Scotland).
| Headcount | Jun 30, 24 | Dec 31, 23 | Change |
|---|---|---|---|
| Graphite Solutions | 2,668 | 2,686 | $-0.7 \%$ |
| Process Technology | 490 | 493 | $-0.6 \%$ |
| Carbon Fibers | 959 | 1,057 | $-9.3 \%$ |
| Composite Solutions | 417 | 437 | $-4.6 \%$ |
| Corporate | 120 | 135 | $-11.1 \%$ |
| Total SGL Carbon | 4,654 | 4,808 | $-3.2 \%$ |
| Headcount | Jun 30, 24 | Dec 31, 23 | Change |
| Germany | 2,075 | 2,100 | $-1.2 \%$ |
| Europe excluding Germany | 1,267 | 1,388 | $-8.7 \%$ |
| USA | 771 | 762 | $1.2 \%$ |
| Asia | 541 | 558 | $-3.0 \%$ |
| Total SGL Carbon | 4,654 | 4,808 | $-3.2 \%$ |
Segment Reporting
Reporting segment Graphite Solutions
| 1st Half Year | |||
|---|---|---|---|
| $€$ million | $\mathbf{2 0 2 4}$ | 2023 | Change |
| Sales revenue | 284.2 | 280.6 | $1.3 \%$ |
| EBITDA pre | 72.2 | 65.1 | $10.9 \%$ |
| EBITDA pre-margin | $25.4 \%$ | $23.2 \%$ | $+2.2 \%$-points |
| EBIT | 54.4 | 51.9 | $4.8 \%$ |
The Graphite Solutions business unit reported sales of $€ 284.2$ million in the first half of 2024, up slightly by $1.3 \%$ on the same period of the previous year (H1 2023: €280.6 million). The continued double-digit percentage increase in sales with customers from the semiconductor industry was almost completely offset by the decline in demand in the battery materials, solar and industrial applications market segments.
With an increase in sales of $€ 16.4$ million or $13.1 \%$ compared to the same period of the previous year, especially the "LED and Semiconductors" market segment contributed to the positive development and now accounts for around 50\% of Graphite Solutions' total sales (H1 2023: around 45\%). The largest share of sales was generated by customers in the silicon carbide-based semiconductor sector, which recorded an increase of more than $20 \%$ in the first half of 2024 and now accounts for around two thirds of sales in the "LED and semiconductors" market segment. The utilization of production capacities and the associated change in the product mix led to a corresponding decline in sales with LED customers. The same applies to the "Solar" market segment, which now only accounts for around 3\% of the business unit's sales. Due to the similarity of the production processes, we have also increasingly utilized production capacities for the increased demand in the semiconductor sector. Graphite Solutions' second largest market segment, "Industrial Applications", supplies a wide range of graphite products for a variety of industries. Due to the current difficult economic situation in many of our sales markets, sales to these customers decreased slightly, meaning that this market segment's share of sales fell to 28\% (H1 2023: around 30\%). Within the "Battery Materials" market segment, sales of both graphite anode material (GAM) and the
production of components for fuel cells fell by just under $25 \%$ compared to the same period of the previous year and now account for around 5\% of Graphite Solutions' sales.
Compared to the slight increase in sales, the adjusted EBITDA of Graphite Solutions rose significantly by $10.9 \%$ to $€ 72.2$ million (H1 2023: $€ 65.1$ million). This was due to both price and volume effects in attractive product segments combined with higher capacity utilization. Increased personnel costs were partially offset by lower energy and raw material costs. The adjusted EBITDA margin improved year-on-year to $25.4 \%$ (H1 2023: 23.2\%).
Higher energy and manufacturing costs compared to international competitors and the relocation of battery projects from Europe are making the successful development and commercialization of European graphite anode material more difficult. In this context and after three years of intensive and costly development work, SGL Carbon has to discontinue the further development of graphite anode material. The discontinuation of R\&D activities and the closure of the battery application laboratory led to a $€ 2.7$ million impairment of production facilities and inventories, which were adjusted as non-recurring items.
EBIT after non-recurring items at Graphite Solutions amounted to $€ 54.4$ million and was therefore $4.8 \%$ higher than in the same period of the previous year (H1 2023: $€ 51.9$ million).
Reporting segment Process Technology
| 1st Half Year | |||
|---|---|---|---|
| € million | $\mathbf{2 0 2 4}$ | 2023 | Change |
| Sales revenue | 69.9 | 64.4 | $8.5 \%$ |
| EBITDA pre | 16.0 | 11.9 | $34.5 \%$ |
| EBITDA pre-margin | $22.9 \%$ | $18.5 \%$ | $+4.4 \%$-points |
| EBIT | $\mathbf{1 5 . 3}$ | 11.2 | $36.6 \%$ |
With an increase in sales of $8.5 \%$ to $€ 69.9$ million (H1 2023: $€ 64.4$ million), the Process Technology business unit continued the positive development of the previous year. Sales in this business unit are primarily generated with customers from the chemical industry. Process Technology benefits from its global customer base. Overall, the first half of 2024 benefited from a well-filled order book, although we expect a slight slowdown in the
second half of the year. Nevertheless, we expect the business unit's capacity utilization to remain good in the following months.
The positive development of Process Technology is also reflected in the adjusted EBITDA. This increased from $€ 11.9$ million in the same period of the previous year to $€ 16.0$ million. Higher capacity utilization and positive product mix effects led to an improvement in the adjusted EBITDA margin from $18.5 \%$ in the first half of 2023 to $22.9 \%$ in the reporting period.
Reporting segment Carbon Fibers
| 1st Half Year | |||
|---|---|---|---|
| € million | $\mathbf{2 0 2 4}$ | $\mathbf{2 0 2 3}$ | Change |
| Sales revenue | 110.1 | 125.1 | $-12.0 \%$ |
| EBITDA pre | -4.4 | 6.1 | - |
| EBITDA pre-margin | $-4.0 \%$ | $4.9 \%$ | $-8.9 \%$-points |
| EBIT | -11.4 | -47.4 | $-75.9 \%$ |
Sales revenue in the Carbon Fibers business unit amounted to $€ 110.1$ million in the first half of 2024 , down on the figure of $€ 125.1$ million in the same period of the previous year. The decline is in particular due to the continued weak demand from the wind industry and the associated capacity adjustments in the carbon fiber business. In the first half of 2024, the market segments Textile Fibers, Industrial Applications and Automotive also saw sales declines in the low double-digit percentage range, while the smallest segment, Aerospace, recorded a slight increase.
In the first half of 2024, wind energy accounted for around 19\% of Carbon Fibers' sales. Due to the diversity of applications, Industrial Applications are Carbon Fibers' largest market segment with a revenue share of around $28 \%$, followed by customers from the automotive sector with around $25 \%$. Overcapacities in almost all product areas combined with high price pressure for these commodity products continue to burden the business unit Carbon Fibers.
We have responded to the ongoing weakening of demand for carbon fibers for the wind industry and have already adjusted our production capacities from the second half of 2023.
The closure of production lines and the associated lack of absorption of fixed costs is particularly reflected in the earnings performance of Carbon Fibers.
Adjusted EBITDA in the Carbon Fibers business unit fell by $€ 10.5$ million year-on-year to minus $€ 4.4$ million (H1 2023: $€ 6.1$ million). The lack of fixed cost absorption due to the temporary shutdown of production lines led to high idle capacity costs and, combined with falling margins for commodity products, had a correspondingly negative impact on adjusted EBITDA. The activities accounted for At-Equity (primarily BSCCB, the joint venture with Brembo for the production of carbon ceramic brake discs) contributed $€ 7.7$ million to the adjusted EBITDA of the Carbon Fibers reporting segment in the first half of 2024 (H1 2023: $€ 11.0$ million). Without the earnings contribution of Brembo SGL Carbon Ceramic Brakes, which is accounted for using the equity method, the adjusted EBITDA of Carbon Fibers would be minus $€ 12.3$ million (H1 2023: minus $€ 4.0$ million).
As demand from the wind industry is not expected to recover in the coming months, we have launched a restructuring program for Carbon Fibers in addition to reducing production capacity. The restructuring measures initiated led to expenses of $€ 2.2$ million in the first half of 2024, which were classified as a non-recurring item. Taking into account the non-recurring items based on the impairment carried out in the 2023 financial year, EBIT for the first half of the year amounted to minus $€ 11.4$ million (H1 2023: minus $€ 47.4$ million).
Developments in the markets in which Carbon Fibers is active led to the decision at the end of February 2024 to review all strategic options for this business unit. These include a possible partial or complete sale of the business unit. The then initiated structured transaction process is still ongoing.
Reporting segment Composite Solutions
| 1st Half Year | |||
|---|---|---|---|
| $€$ million | $\mathbf{2 0 2 4}$ | $\mathbf{2 0 2 3}$ | Change |
| Sales revenue | 66.9 | 79.6 | $-16.0 \%$ |
| EBITDA pre | 8.1 | 12.3 | $-34.1 \%$ |
| EBITDA pre-margin | $12.1 \%$ | $15.5 \%$ | $-3.4 \%$-points |
| EBIT | 4.4 | 8.7 | $-49.4 \%$ |
Revenue in the Composite Solutions business unit amounted to $€ 66.9$ million in the first half of 2024, down 16.0\% (H1 2023: $€ 79.6$ million). The decline is mainly due to the termination of a project-related supply contract with an automotive customer. Among other things, the business unit develops and produces customized vehicle components made from various composite materials for customers in Europe and North America. The lower sales figures for electric vehicles are also impacting on demand for the first time.
The automotive market segment is the dominant customer segment, accounting for 93\% of Composite Solutions' half-year sales.
As a result of lower volumes and product mix effects, the adjusted EBITDA of Composite Solutions decreased by $€ 4.2$ million or $34.1 \%$ year-on-year to $€ 8.1$ million (H1 2023: $€ 12.3$ million). The adjusted EBITDA margin weakened accordingly from 15.5\% in H1 2023 to 12.1\% in the reporting period.
Reporting segment Corporate
| 1st Half Year | |||
|---|---|---|---|
| $€$ million | $\mathbf{2 0 2 4}$ | $\mathbf{2 0 2 3}$ | Change |
| Sales revenue | 6.9 | 10.8 | $-36.1 \%$ |
| EBITDA pre | -5.4 | -7.4 | $-27.0 \%$ |
| EBIT | -6.8 | -12.4 | $-45.2 \%$ |
Sales revenue in the Corporate reporting segment fell by $36.1 \%$ from $€ 10.8$ million in the first half of 2023 to $€ 6.9$ million in the reporting period. This decline is mainly due to the sale of the Gardena (USA) and Pune (India) locations, which impacted the first half of 2023. The sales of the two locations were no longer reported in the respective business units in the first half of 2023, but were allocated to the Corporate reporting segment. The operating activities of the Gardena site (USA) were sold on February 16, 2023. The Pune (India) site was sold on April 28, 2023.
Adjusted EBITDA in the Corporate unit improved from minus $€ 7.4$ million in the same period of the previous year to minus $€ 5.4$ million. This improvement of $€ 2.0$ million in a six-
month comparison is in particular due to the absence of the negative operating earnings contributions from the divested activities in Gardena and Pune.
EBIT includes a positive one-off effect from the partial reversal of a provision for the dismantling and disposal of the former Frankfurt/Griesheim site. On the other hand, oneoff expenses resulting from the review of strategic options for the Carbon Fibers business bnit had a negative impact on EBIT. The balance of these one-off effects and non-recurring items in the amount of $€ 1.9$ million is included in the EBIT for the first half of the year of minus $€ 6.8$ million (H1 2023: minus $€ 12.4$ million).
Opportunities and Risks
Regarding existing opportunities and risks, we generally refer to the detailed statements made in the 2023 Annual Report, which we supplement as follows.
The possible partial or complete sale of the Carbon Fibers business unit may have a significant impact on the valuation of assets and the level of consolidated earnings and cash flow, depending on the sales price achieved.
In addition, the delayed growth in sales of electric vehicles and the associated growth in our focus market of semiconductors could have a negative impact on our expectations for the Graphite Solutions business unit as regards price and volume development in the second half of 2024.
Based on the information currently available, we do not believe that there are any significant individual risks that could jeopardize the company as a going concern, either now or in the foreseeable future. Even the cumulative consideration of the current individual risks does not jeopardize the continued existence of SGL Carbon.
Outlook
Different developments in our sales markets influence the expected sales and earnings development of the business units. Due to our diversified business model, declines in demand for certain products can be largely offset by higher-than-planned sales in other areas, meaning that we nevertheless expect to achieve the forecast we issued in March for the SGL Carbon Group at the lower end of the stated range. For fiscal year 2024, we expect Group sales to be at the previous year's level (2023: €1,089.1 million) and adjusted EBITDA at Group level to be between $€ 160$ million and $€ 170$ million. There may only be slight adjustments to expectations in the individual business units.
One of our most important market segments is the semiconductor industry and, in particular, the demand for graphite components for the production of silicon carbide-based semiconductors. These are primarily used in electric vehicles due to their higher efficiency and performance. In the first half of 2024, global demand for electric vehicles slowed significantly compared to the growth in previous quarters, and a return to the previous year's growth rates is not expected in the coming months either. In addition, there are high inventories in the semiconductor value chain, which may also have an impact on the price structure. We remain firmly convinced that the market for electronic components and semiconductors will continue to grow significantly in the future.
Based on the developments in the semiconductor market described above, we expect demand for our specialty graphite components for the production of SiC-based semiconductors to slow in the second half of 2024. Accordingly, we anticipate slower growth for our Graphite Solutions business unit, although we continue to expect sales and adjusted EBITDA for 2024 to be slightly higher than in the previous year.
The Process Technology business unit also performed very well in the first six months of 2024, improving revenue ( $+8.5 \%$ ) and adjusted EBITDA ( $+34.5 \%$ ) compared to the same period of the previous year. Due to its global customer structure and the good order situation for the second half of 2024, we expect Process Technology to perform slightly above our original expectations.
As already announced in March 2024, we no longer expect demand from the wind industry to pick up this financial year. After six months in 2024, the weak demand trend for the
current year is confirmed. Accordingly, our assessment of the development of sales and adjusted EBITDA in the Carbon Fibers business unit remains unchanged.
Our expectations for the Composite Solutions business unit also remain virtually unchanged. Due to the expiry of a supply contract with an automotive customer, we had forecasted a significant decline in sales and a slight deterioration in adjusted EBITDA in March 2024 compared to 2023.
Taking into account the business units' developments in the first half of 2024 and the expected trends for our key sales markets, we expect to meet our forecast for sales and adjusted EBITDA at the lower end of the announced range.
Group financial targets
| Actual 2023 | Outlook 2024 | |
|---|---|---|
| at prior year | ||
| Sales revenue | 1,089.1 | level |
| EBITDA pre | 168.4 | $160-170$ |
| Return of capital employed (ROCE 2023) | $11.3 \%$ | $10 \%-11 \%$ significantly below prior year |
| Free cash flow | 95.6 | level |
| Segment | KPI | Actual 2023 | Outlook 2024 | |
|---|---|---|---|---|
| slight improvement |
unchanged slight improvement |
|||
| GS | Sales revenue | 565.7 | significant improvement |
|
| EBITDA pre | 134.0 | |||
| PT | Sales revenue | 127.9 | constant | improvement significant improvement |
| EBITDA pre | 22.4 | slight decline | ||
| CF | Sales revenue | 224.9 | constant | unchanged |
| EBITDA pre | 7.2 | significant decline |
unchanged | |
| CS | Sales revenue | 153.9 | significant decline |
unchanged |
| EBITDA pre | 22.2 | slight decline | unchanged | |
| Corporate | EBITDA pre | $-17.4$ | significant decline |
unchanged |
${ }^{1)}$ "Slight" indicates a variation of up to 10\%; "significant" indicates a variation of more than 10\%
Wiesbaden, August 8, 2024
SGL Carbon SE
The Board of Management
Dr. Torsten Derr
Thomas Dippold
Condensed Interim Financial Statements
Consolidated Income Statement
| 2nd Quarter | 1st Half Year | |||||
|---|---|---|---|---|---|---|
| € million | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Sales revenue | 265.4 | 276.8 | $-4.1 \%$ | 538.0 | 560.5 | $-4.0 \%$ |
| Cost of sales | $-198.1$ | $-211.9$ | $-6.5 \%$ | $-408.0$ | $-437.0$ | $-6.6 \%$ |
| Gross profit | 67.3 | 64.9 | 3.7\% | 130.0 | 123.5 | 5.3\% |
| Selling expenses | $-23.5$ | $-25.2$ | $-6.7 \%$ | $-47.3$ | $-51.1$ | $-7.4 \%$ |
| Research and development costs | $-7.0$ | $-8.6$ | $-18.6 \%$ | $-14.6$ | $-15.6$ | $-6.4 \%$ |
| General and administrative expenses | $-10.8$ | $-8.3$ | 30.1\% | $-19.9$ | $-18.1$ | 9.9\% |
| Other operating income | 2.3 | 5.7 | $-59.6 \%$ | 5.8 | 12.8 | $-54.7 \%$ |
| Other operating expenses | $-2.3$ | $-3.3$ | $-30.3 \%$ | $-4.0$ | $-5.8$ | $-31.0 \%$ |
| Result from investments accounted for At-Equity | 3.3 | 5.8 | $-43.1 \%$ | 7.7 | 11.0 | $-30.0 \%$ |
| Restructuring expenses | 0.0 | 0.0 | - | $-1.8$ | 0.0 | - |
| Impairment loss | 0.0 | $-44.7$ | $-100.0 \%$ | 0.0 | $-44.7$ | $-100.0 \%$ |
| Operating profit/loss | 29.3 | $-13.7$ | - | 55.9 | 12.0 | $>100.0 \%$ |
| Interest income | 1.3 | 1.1 | 18.2\% | 2.7 | 1.9 | 42.1\% |
| Interest expense | $-9.1$ | $-8.2$ | 11.0\% | $-19.3$ | $-15.7$ | 22.9\% |
| Other financial result | $-0.4$ | $-0.9$ | $-55.6 \%$ | $-0.7$ | $-2.0$ | $-65.0 \%$ |
| Result before income taxes | 21.1 | $-21.7$ | - | 38.6 | $-3.8$ | - |
| Income tax expense | $-4.2$ | $-3.3$ | 27.3\% | $-8.8$ | $-5.9$ | 49.2\% |
| Net result for the period | 16.9 | $-25.0$ | - | 29.8 | $-9.7$ | - |
| Thereof attributable to: | ||||||
| Non-controlling interests | 0.1 | 0.2 | $-50.0 \%$ | 0.4 | 0.3 | 33.3\% |
| Consolidated net result (attributable to shareholders of the parent company) | 16.8 | $-25.2$ | - | 29.4 | $-10.0$ | - |
| Earnings per share, basic and diluted (in€) | 0.14 | $-0.20$ | - | 0.24 | $-0.08$ | - |
Consolidated Statement of Comprehensive Income
| 2nd Quarter | 1st Half Year | |||
|---|---|---|---|---|
| € million | 2024 | 2023 | 2024 | 2023 |
| Net result for the period | 16.9 | $-25.0$ | 29.8 | $-9.7$ |
| Items that may be reclassified subsequently to profit or loss | ||||
| Share of investments accounted for At-Equity in other comprehensive income | 0.7 | $-1.0$ | ||
| Cash flow hedges ${ }^{1)}$ | $-0.2$ | 0.3 | $-1.4$ | 0.5 |
| Currency translation ${ }^{1)}$ | 2.7 | 0.1 | 11.4 | $-6.1$ |
| Items that will not be reclassified to profit or loss | ||||
| Actuarial gains/losses on pensions and similar obligations ${ }^{1)}$ | 10.7 | $-2.3$ | 10.7 | $-2.3$ |
| Other comprehensive income | 13.2 | $-1.2$ | 20.7 | $-8.9$ |
| Comprehensive income | 30.1 | $-26.2$ | 50.5 | $-18.6$ |
| Thereof attributable to: | ||||
| Non-controlling interests | 0.1 | 0.1 | 0.4 | 0.2 |
| Consolidated net result (attributable to shareholders of the parent company) | 30.0 | $-26.3$ | 50.1 | $-18.8$ |
${ }^{1)}$ Includes tax effects in H1 2024 of $€ 0.0$ million (H1 2023: $€ 0.0$ million)
Consolidated Balance Sheet
| ASSETS € million | Jun 30, 24 | Dec 31, 23 | Change |
|---|---|---|---|
| Goodwill | 23.0 | 22.4 | $2.7 \%$ |
| Other intangible assets | 11.9 | 13.0 | $-8.5 \%$ |
| Property, plant and equipment | 555.7 | 532.2 | $4.4 \%$ |
| Investments accounted for At-Equity | 65.6 | 68.2 | $-3.8 \%$ |
| Other non-current assets | 6.8 | 6.6 | $3.0 \%$ |
| Deferred tax assets | 75.5 | 73.2 | $3.1 \%$ |
| Total non-current assets | 738.5 | 715.6 | $3.2 \%$ |
| Inventories | 374.7 | 373.6 | $0.3 \%$ |
| Trade receivables and contract assets | 167.1 | 150.9 | $10.7 \%$ |
| Other receivables and other assets | 29.5 | 33.1 | $-10.9 \%$ |
| Liquidity | 169.3 | 199.4 | $-15.1 \%$ |
| Time deposits | 65.0 | 65.0 | - |
| Cash and cash equivalents | 104.3 | 134.4 | $-22.4 \%$ |
| Total current assets | 740.6 | 757.0 | $-2.2 \%$ |
| Total assets | 1,479.1 | 1,472.6 | $0.4 \%$ |
| EQUITY AND LIABILITIES $€$ million | Jun 30, 24 | Dec 31, 23 | Change |
|---|---|---|---|
| Issued capital | 313.2 | 313.2 | $0.0 \%$ |
| Capital reserves | 1,067.8 | 1,067.8 | $0.0 \%$ |
| Accumulated losses | $-725.6$ | $-775.7$ | $-6.5 \%$ |
| Equity attributable to the shareholders of the parent company | 655.4 | 605.3 | 8.3\% |
| Non-controlling interests | 9.5 | 9.6 | $-1.0 \%$ |
| Total equity | 664.9 | 614.9 | 8.1\% |
| Provisions for pensions and similar employee benefits | 193.5 | 206.1 | $-6.1 \%$ |
| Other provisions | 6.5 | 12.5 | $-48.0 \%$ |
| Interest-bearing loans | 256.8 | 279.8 | $-8.2 \%$ |
| Contract liabilities | 79.6 | 64.2 | $24.0 \%$ |
| Other financial liabilities | 17.5 | 18.8 | $-6.9 \%$ |
| Deferred tax liabilities | 2.1 | 1.9 | $10.5 \%$ |
| Total non-current liabilities | 556.0 | 583.3 | $-4.7 \%$ |
| Other provisions | 76.5 | 79.1 | $-3.3 \%$ |
| Current portion of interest-bearing loans | 3.0 | 3.0 | $0.0 \%$ |
| Trade payables and contract liabilities | 138.8 | 154.3 | $-10.0 \%$ |
| Other financial liabilities | 9.7 | 11.7 | $-17.1 \%$ |
| Other liabilities | 30.2 | 26.3 | $14.8 \%$ |
| Total current liabilities | 258.2 | 274.4 | $-5.9 \%$ |
| Total equity and liabilities | 1,479.1 | 1,472.6 | $0.4 \%$ |
Consolidated Cash Flow Statement
| 1st Half Year | ||
|---|---|---|
| € million | 2024 | 2023 |
| Result before income taxes | 38.6 | $-3.8$ |
| Adjustments to reconcile the result before taxes for the period to cash flow from operating activities: | ||
| Interest expense (net) | 16.6 | 13.8 |
| Changes in the value of contract assets (IFRS 15) | 0.4 | $-7.5$ |
| Result from the disposal of property, plant and equipment | 0.2 | 0.0 |
| Depreciation/amortization expense | 27.6 | 29.7 |
| Impairment loss | 44.7 | |
| Restructuring expenses | 1.8 | 0.0 |
| Result from investments accounted for At-Equity | $-7.7$ | $-11.0$ |
| Other financial result | 0.7 | 2.0 |
| Interest received | 1.9 | 1.5 |
| Income taxes paid | $-7.9$ | $-6.5$ |
| Changes in provisions, net | $-14.2$ | $-16.1$ |
| Changes in net working capital | ||
| Inventories | $-0.2$ | $-59.7$ |
| Trade receivables | $-11.3$ | 16.1 |
| Trade payables and contract liabilities | $-5.2$ | 33.2 |
| Changes in other operating assets/liabilities | 5.2 | 8.4 |
| Cash flow from operating activities | 46.5 | 44.8 |
| 1st Half Year | ||
|---|---|---|
| € million | 2024 | 2023 |
| Payments to purchase intangible assets and property, plant \& equipment | $-44.2$ | $-40.4$ |
| Proceeds from the sale of intangible assets and property, plant \& equipment | 0.1 | 8.2 |
| Dividend payments from investments accounted for At-Equity | 10.0 | 7.5 |
| Cash flow from investing activities | $-34.1$ | $-24.7$ |
| Proceeds from issuance of financial liabilities | 118.7 | |
| Repayment of financial liabilities | $-26.5$ | $-36.4$ |
| Payments in connection with financing activities | $-3.2$ | |
| Redemption payments for lease liabilities | $-4.3$ | $-4.2$ |
| Interest paid | $-11.2$ | $-10.3$ |
| Other financing activities | $-0.5$ | $-0.4$ |
| Cash flow from financing activities | $-42.5$ | 64.2 |
| Effect of foreign exchange rate changes | 0.0 | $-1.1$ |
| Net change in cash and cash equivalents | $-30.1$ | 83.2 |
| Cash and cash equivalents at beginning of period | 134.4 | 227.3 |
| Cash and cash equivalents at end of period | 104.3 | 310.5 |
| Time deposits at end of period | 65.0 | 0.0 |
| Liquidity | 169.3 | 310.5 |
Consolidated Statement of Changes in Equity
| €m | Issued capital | Capital reserves | Accumulated profit/loss | Equity attributable to the shareholders of the parent company Accumulated losses Accumulated other comprehensive income |
Equity attributable to the shareholders of the parent company | Non- controlling interests | Total equity | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Currency translation | Cashflow hedges (net) | Investments accounted for At-Equity | Accumulated losses | |||||||
| Balance at Dec 31, 23 | 313.2 | 1,067.8 | $-736.1$ | $-41.0$ | 1.4 | 0.0 | $-775.7$ | 605.3 | 9.6 | 614.9 |
| Net result for the period | 29.4 | 29.4 | 29.4 | 0.4 | 29.8 | |||||
| Other comprehensive income | 10.7 | 11.4 | $-1.4$ | 20.7 | 20.7 | 20.7 | ||||
| Comprehensive income | 40.1 | 11.4 | $-1.4$ | 0.0 | 50.1 | 50.1 | 0.4 | 50.5 | ||
| Dividends | 0.0 | $-0.5$ | $-0.5$ | |||||||
| Balance at Jun 30, 24 | 313.2 | 1,067.8 | $-696.0$ | $-29.6$ | 0.0 | 0.0 | $-725.6$ | 655.4 | 9.5 | 664.9 |
| Balance at Dec 31, 22 | 313.2 | 1,053.5 | $-767.8$ | $-29.9$ | 0.5 | $-0.2$ | $-797.4$ | 569.3 | 9.3 | 578.6 |
| Net result for the period | $-10.0$ | $-10.0$ | $-10.0$ | 0.3 | $-9.7$ | |||||
| Other comprehensive income | $-2.3$ | $-6.0$ | 0.5 | $-1.0$ | $-8.8$ | $-8.8$ | $-0.1$ | $-8.9$ | ||
| Comprehensive income | $-12.3$ | $-6.0$ | 0.5 | $-1.0$ | $-18.8$ | $-18.8$ | 0.2 | $-18.6$ | ||
| Dividends | 0.0 | $-0.4$ | $-0.4$ | |||||||
| Equity component of convertible bonds ${ }^{1)}$ | 14.7 | 0.0 | 14.7 | 14.7 | ||||||
| Other changes in equity | 0.0 | 0.0 | 0.1 | 0.1 | ||||||
| Balance at Jun 30, 23 | 313.2 | 1,068.2 | $-780.1$ | $-35.9$ | 1.0 | $-1.2$ | $-816.2$ | 565.2 | 9.2 | 574.4 |
${ }^{1)}$ Effects in connection with the issuance of the convertible bond 2023/2028 in the amount of $€ 14.9$ million (after transaction costs) and the repurchase of the convertible bond 2018/2023 of minus $€ 0.2$ million
Notes to the Condensed Interim Financial Statements
Basis of Preparation
SGL Carbon prepares the Condensed Interim Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU). The Condensed Interim Financial Statements as of June 30, 2024 have been prepared in accordance with the regulations for interim financial reporting. They should be read in conjunction with the IFRS consolidated financial statements of SGL Carbon as of December 31, 2023. The accounting policies applied in the condensed interim consolidated financial statements are the same as those applied in the consolidated financial statements for fiscal year 2023.
The results achieved in the interim reporting period are not necessarily indicative of future business performance.
Income tax expenses are calculated in the interim reporting periods on the basis of SGL Carbon's currently expected effective tax rate for the year as a whole.
The interim consolidated financial statements are unaudited. They were authorized for issue by the Board of Management on August 8, 2024.
Change in the scope of consolidation
In the first half of 2024, SGL Carbon founded the shelf company SGL Carbon Fibers GmbH, Augsburg. This change had no material impact on SGL Carbon's net assets, financial position and results of operations.
Other disclosures
Provisions for pensions and similar employee benefits
In the reporting period, SGL Carbon adjusted the discount rate used to calculate the estimated present value of the pension plans in Germany and the USA. The long-term interest rate level has increased in each case, in Germany by 0.4 percentage points and in the USA by 0.5 percentage points. On June 30, 2024, the actuarial interest rates were 3.7\% in Germany (December 31, 2023: 3.3\%) and 5.4\% in the USA (December 31, 2023: 4.9\%). The adjustment of the discount rates and the revaluation of plan assets resulted in actuarial gains totaling $€ 10.7$ million (excluding tax effect), which were recognized in full in other comprehensive income, increasing equity.
Restructuring expenses
Restructuring expenses totaling $€ 2.7$ million were incurred in connection with the discontinuation of development activities for graphite anode material (GAM) for use in lithiumion batteries (see events after the balance sheet date), of which $€ 2.6$ million was impairment of property, plant and equipment. Furthermore, an amount of $€ 2.2$ million has been recognized for personnel measures already initiated in the CF reporting segment. The partial reversal of provisions from the program initiated in previous years for the decommissioned site in Frankfurt/Griesheim had an offsetting effect totaling $€ 3.1$ million, as the dismantling and disposal costs were lower than planned.
Related party disclosures
The following table shows the volume of transactions with related companies:
H1 2024
| Sale of goods | Sale of services | Purchase of goods | Purchase of services | Dividends received | Receivables at Jun 30 | Loans at Jun 30 | Liabilities at Jun 30 | |
|---|---|---|---|---|---|---|---|---|
| Joint ventures | 13.2 | 6.0 | 0.0 | 0.0 | 10.0 | 4.0 | 0.0 | |
| Associates | 0.0 | 0.2 | 5.8 | 0.0 | 0.1 | 0.0 | $-1.2$ | |
| Total | 13.2 | 6.2 | 5.8 | 0.0 | 10.0 | 4.1 | 0.0 | $-1.2$ |
H1 2023
| Sale of goods | Sale of services | Purchase of goods | Purchase of services | Dividends received | Receivables at Jun 30 | Loans at Jun 30 | Liabilities at Jun 30 | |
|---|---|---|---|---|---|---|---|---|
| Joint ventures | 12.1 | 5.5 | 0.0 | 0.0 | 7.5 | 3.6 | 0.0 | $-0.1$ |
| Associates | 0.0 | 0.1 | 32.2 | 0.0 | 0.1 | 0.0 | $-5.9$ | |
| Total | 12.1 | 5.6 | 32.2 | 0.0 | 7.5 | 3.7 | 0.0 | $-6.0$ |
As the largest shareholder of SGL Carbon, SKion GmbH continues to hold a nominal amount of €25 million in the convertible bond as of December 31, 2023.
Investments accounted for At-Equity
The main joint venture accounted for At-Equity is Brembo SGL Carbon Ceramic Brakes S.p.A. (Ceramic Brake Discs), Stezzano, Italy (BSCCB), which is operated together with Brembo and produces and further develops carbon ceramic brake discs. The share of SGL Carbon in the net assets and the share in the net result of the period are allocated to the reporting segment CF. The table below provides the result of operations and the financial position of BSCCB, as reported in its financial statements (taking into account IFRS 15 effects).
| 1st Half Year | ||||||
|---|---|---|---|---|---|---|
| € million | 2024 | 2023 | ||||
| Ownership interest | 50\% | 50\% | ||||
| Income Statement ${ }^{(1)}$ | ||||||
| Sales revenue | 134.5 | 130.9 | ||||
| Amortization/depreciation on intangible assets and property, plant and equipment | $-5.9$ | $-5.4$ | ||||
| Operating profit/loss | 22.2 | 27.4 | ||||
| Interest income | 0.5 | 0.3 | ||||
| Interest expense | $-0.8$ | $-0.3$ | ||||
| Income tax expense | $-6.3$ | $-7.3$ | ||||
| Net result for the period | 15.8 | 20.1 | ||||
| Share of SGL Carbon in the net result for the period (50\%) | 7.9 | 10.1 |
| € million | Jun 30, 24 | Dec 31, 23 |
|---|---|---|
| Balance Sheet ${ }^{(1)}$ | ||
| Non-current assets | 98.2 | 87.8 |
| Current assets | 100.1 | 88.7 |
| Thereof cash and cash equivalents | 11.0 | 4.6 |
| Non-current liabilities | 19.7 | 17.4 |
| Thereof financial debt | 11.6 | 9.8 |
| Current liabilities | 75.2 | 51.3 |
| Thereof financial debt | 25.6 | 2.4 |
| Net assets | 103.4 | 107.8 |
| Share of SGL Carbon in net assets (50\%) | 51.7 | 53.9 |
| Goodwill/customer base | 3.6 | 3.6 |
| Carrying amount of material joint ventures | 55.3 | 57.5 |
The other investments accounted for At-Equity have a total carrying amount of $€ 10.3$ million (December 31, 2023: $€ 10.7$ million) and contributed minus $€ 0.2$ million (H1 2023: $€ 0.9$ million) to the result from investments accounted At-Equity and $€ 0.0$ million (H1 2023: $€ 1.0$ million) to the change in other equity in the first half of 2024.
Additional disclosures on financial instruments
The following table assigns the individual balance sheet items for the financial instruments to classes and measurement categories:
| Measurement category under IFRS 9 |
Carrying amount at Jun 30, 24 |
Carrying amount at Dec 31, 23 |
|
|---|---|---|---|
| Financial assets | |||
| Cash and cash equivalents | 1) | 104.3 | 134.4 |
| Time deposits | 1) | 65.0 | 65.0 |
| Trade receivables | 1) | 71.5 | 67.6 |
| Trade receivables | 2) | 9.8 | 3.6 |
| Marketable securities and similar investments | 2) | 5.8 | 5.5 |
| Other financial assets | 1) | 5.9 | 4.5 |
| Derivative financial assets | |||
| Derivatives without a hedging relationship | 3) | 0.4 | 0.4 |
| Derivatives with a hedging relationship | n.a. | 0.2 | 1.7 |
| Financial liabilities | |||
| Convertible bonds | 4) | 195.6 | 192.8 |
| Term Loan Facility | 4) | 50.0 | 75.0 |
| Bank loans, overdrafts and other financial liabilities | 4) | 18.1 | 19.6 |
| Refinancing costs | 4) | $-3.9$ | $-4.6$ |
| Lease liabilities | n.a. | 24.7 | 26.0 |
| Trade payables | 4) | 93.4 | 102.0 |
| Miscellaneous other financial liabilities | 4) | 1.9 | 4.1 |
| Derivative financial liabilities | |||
| Derivatives without a hedging relationship | 5) | 0.5 | 0.3 |
| Derivatives with a hedging relationship | n.a. | 0.1 | 0.1 |
| Thereof aggregated by measurement category in accordance with IFRS 9 | |||
| 1) Financial assets measured at amortized costs | 246.7 | 271.5 | |
| 2) Financial assets measured at fair value through profit and loss | 15.6 | 9.1 | |
| 3) Other financial assets measured at fair value through profit and loss | 0.4 | 0.4 | |
| 4) Financial liabilities measured at amortized costs | 355.1 | 388.9 | |
| 5) Financial liabilities measured at fair value through profit and loss | 0.5 | 0.3 |
The main change compared to the figures as of December 31, 2023 resulted from the partial repayment of the term loan in the amount of $€ 25.0$ million.
The following table shows the breakdown of the assets and liabilities measured at fair value into the three levels of fair value hierarchy in accordance with IFRS 13:
| Jun 30, 24 | ||||
|---|---|---|---|---|
| € million | Level 1 | Level 2 | Level 3 | Total |
| Marketable securities and similar investments | 5.8 | 5.8 | ||
| Trade receivables | 9.8 | 9.8 | ||
| Derivative financial assets | 0.6 | 0.6 | ||
| Derivative financial liabilities | 0.6 | 0.6 | ||
| Dec 31, 23 | ||||
| € million | Level 1 | Level 2 | Level 3 | Total |
| Marketable securities and similar investments | 5.5 | 5.5 | ||
| Trade receivables | 3.6 | 3.6 | ||
| Derivative financial assets | 2.1 | 2.1 | ||
| Derivative financial liabilities | 0.4 | 0.4 |
The market values of the 2023/2028 and 2022/2027 convertible bonds recognized at amortized cost amounted to $€ 118.7$ million and $€ 106.1$ million respectively at 30 June, 2024 (31 December 2023: €119.9 million and €105.3 million respectively). As the market values can be derived directly from the stock market price, these are level 1 financial instruments.
Receivables management
The volume of receivables sold amounted to $€ 58.9$ million as at the reporting date (December 31, 2023: €52.2 million) and reduced the carrying amount of trade receivables.
Seasonality of operations
In all reporting segments, customer order patterns primarily follow overall global trends of the underlying industries and depend on the product availability and current price levels. The overall economic environment is usually a first indicator for any developments in the customers' demand. In addition, individual large projects can significantly impact the business development and overlap regular seasonality.
Other additional information
The subscribed capital of SGL Carbon SE on June 30, 2024 amounts to $€ 313.2$ million and is unchanged from December 31, 2023. It is divided into 122,341,478 ordinary bearer shares with no par value, each with a pro rata amount of $€ 2.56$. No new shares were issued from the authorized capital in H1 2024. SGL Carbon SE held a total of 70,501 treasury shares. Based on an average number of 122.3 million shares, basic earnings per share amounted to $€ 0.24$ in the first half of 2024 (H1 2023: minus €0.08).
The calculation of diluted earnings per share is based on the assumption that outstanding debt instruments are converted into shares (convertible bonds). The above-mentioned financial instruments are only taken into account in the calculation of diluted earnings per share if they have a dilutive effect in the respective reporting period. Accordingly, diluted earnings per share remained unchanged at $€ 0.24$ in H1 2024 (H1 2023: minus €0.08).
Segment information
| Graphite Solutions |
Process Technology |
Carbon Fibers | Composite Solutions |
Corporate | Consolidation | SGL Carbon | |
|---|---|---|---|---|---|---|---|
| 1st Half Year 2024 | |||||||
| External sales revenue | 284.2 | 69.9 | 110.1 | 66.9 | 6.9 | 0.0 | 538.0 |
| Intersegment sales revenue | 2.6 | 1.0 | 5.8 | 0.5 | 17.3 | $-27.2$ | 0.0 |
| Total sales revenue | 286.8 | 70.9 | 115.9 | 67.4 | 24.2 | $-27.2$ | 538.0 |
| Timing of revenue recognition | |||||||
| Products transferred at point in time | 89.3 | 0.0 | 78.4 | 15.9 | 6.9 | 0.0 | 190.5 |
| Products and services transferred over time | 194.9 | 69.9 | 31.7 | 51.0 | 0.0 | 0.0 | 347.5 |
| Total sales revenue | 284.2 | 69.9 | 110.1 | 66.9 | 6.9 | 0.0 | 538.0 |
| Sales revenue by customer industry | |||||||
| Mobility | 27.0 | - | 32.2 | 64.2 | 5.7 | 0.0 | 129.1 |
| Energy | 22.8 | - | 21.2 | - | - | 0.0 | 44.0 |
| Industrial Applications | 80.0 | - | 30.9 | 2.7 | 1.2 | 0.0 | 114.8 |
| Chemicals | 12.6 | 69.9 | - | - | - | 0.0 | 82.5 |
| Digitization | 141.8 | - | - | - | - | 0.0 | 141.8 |
| Textile Fibers | - | - | 25.8 | - | - | 0.0 | 25.8 |
| Total sales revenue | 284.2 | 69.9 | 110.1 | 66.9 | 6.9 | 0.0 | 538.0 |
| EBITDA pre ${ }^{1)}$ | 72.2 | 16.0 | $-4.4$ | 8.1 | $-5.4$ | 0.0 | 86.5 |
| Amortization/depreciation on intangible assets and property, plant and equipment | 15.1 | 0.7 | 4.7 | 3.2 | 3.3 | 0.0 | 27.0 |
| EBIT pre | 57.1 | 15.3 | $-9.1$ | 4.9 | $-8.7$ | 0.0 | 59.5 |
| One-off effects/Non-recurring items | $-2.7$ | 0.0 | $-2.3$ | $-0.5$ | 1.9 | 0.0 | $-3.6$ |
| EBIT | 54.4 | 15.3 | $-11.4$ | 4.4 | $-6.8$ | 0.0 | 55.9 |
| Capital expenditure ${ }^{2)}$ | 28.6 | 0.4 | 1.4 | 3.5 | 10.3 | 0.0 | 44.2 |
| Working Capital ${ }^{3)}$ | 198.3 | 27.1 | 130.9 | 38.4 | $-71.3$ | 0.0 | 323.4 |
| Capital employed ${ }^{4)}$ | 516.0 | 39.8 | 309.0 | 88.8 | 26.0 | 0.0 | 979.6 |
| Cash Generation ${ }^{5)}$ | 26.9 | 10.3 | $-9.2$ | 10.3 | $-13.3$ | 0.0 | 25.0 |
| Result from investments accounted for At-Equity | - | - | 7.7 | - | - | 0.0 | 7.7 |
| Total sales revenue of investments accounted for At-Equity ${ }^{6)}$ | - | - | 141.7 | - | - | - | 141.7 |
The main one-off effects/non-recurring items include impairment losses on property, plant and equipment of $€ 2.6$ million in the GS reporting segment due to the discontinuation of development activities in the Battery Solutions business line, personnel measures of $€ 2.2$ million in the CF reporting segment and positive one-off effects from the reversal of provisions for dismantling and disposal costs of a site closed in previous years of $€ 3.1$ million in the Corporate reporting segment (each reported as restructuring expenses in the consolidated income statement), as well as consulting costs of $€ 1.2$ million in connection with the review of strategic options for the CF reporting segment.
| Graphite Solutions | Process Carbon Fibers ${ }^{7)}$ | Composite Solutions | Corporate | Consolidation | SGL Carbon | ||
|---|---|---|---|---|---|---|---|
| € million | |||||||
| 1st Half Year 2023 | |||||||
| External sales revenue | 280.6 | 64.4 | 125.1 | 79.6 | 10.8 | 0.0 | 560.5 |
| Intersegment sales revenue | 2.6 | 0.6 | 12.1 | 0.2 | 18.3 | $-33.8$ | 0.0 |
| Total sales revenue | 283.2 | 65.0 | 137.2 | 79.8 | 29.1 | $-33.8$ | 560.5 |
| Timing of revenue recognition | |||||||
| Products transferred at point in time | 88.1 | 0.0 | 89.1 | 18.9 | 10.8 | 0.0 | 206.9 |
| Products and services transferred over time | 192.5 | 64.4 | 36.0 | 60.7 | 0.0 | 0.0 | 353.6 |
| Total sales revenue | 280.6 | 64.4 | 125.1 | 79.6 | 10.8 | 0.0 | 560.5 |
| Sales revenue by customer industry | |||||||
| Mobility | 26.5 | - | 36.8 | 76.7 | 5.9 | 0.0 | 145.9 |
| Energy | 30.8 | - | 22.8 | - | - | 0.0 | 53.6 |
| Industrial Applications | 85.0 | - | 35.3 | 2.9 | 4.9 | 0.0 | 128.1 |
| Chemicals | 12.9 | 64.4 | - | - | - | 0.0 | 77.3 |
| Digitization | 125.4 | - | - | - | - | 0.0 | 125.4 |
| Textile Fibers | - | - | 30.2 | - | - | 0.0 | 30.2 |
| Total sales revenue | 280.6 | 64.4 | 125.1 | 79.6 | 10.8 | 0.0 | 560.5 |
| EBITDA pre ${ }^{1)}$ | 65.1 | 11.9 | 6.1 | 12.3 | $-7.4$ | 0.0 | 88.0 |
| Amortization/depreciation on intangible assets and property, plant and equipment | 13.3 | 0.7 | 8.7 | 3.1 | 3.3 | 0.0 | 29.1 |
| EBIT pre | 51.8 | 11.2 | $-2.6$ | 9.2 | $-10.7$ | 0.0 | 58.9 |
| One-off effects/Non-recurring items | 0.1 | 0.0 | $-44.8$ | $-0.5$ | $-1.7$ | 0.0 | $-46.9$ |
| EBIT | 51.9 | 11.2 | $-47.4$ | 8.7 | $-12.4$ | 0.0 | 12.0 |
| Capital expenditure ${ }^{2)}$ | 27.4 | 0.5 | 7.7 | 2.4 | 2.4 | 0.0 | 40.4 |
| Working Capital (31.12.) ${ }^{3)}$ | 181.6 | 21.8 | 127.5 | 44.0 | $-68.9$ | 0.0 | 306.0 |
| Capital employed (31.12.) ${ }^{4)}$ | 483.9 | 34.1 | 309.0 | 93.8 | 21.0 | 0.0 | 941.8 |
| Cash Generation ${ }^{5)}$ | 24.3 | 9.5 | $-4.6$ | $-4.5$ | 9.2 | 0.0 | 33.9 |
| Result from investments accounted for At-Equity | - | - | 11.0 | - | - | - | 11.0 |
| Total sales revenue of investments accounted for At-Equity ${ }^{6)}$ | - | - | 173.1 | - | - | - | 173.1 |
${ }^{1)}$ EBITDA adjusted by one-off effects and non-recurring items
${ }^{2)}$ 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
${ }^{4)}$ Defined as the sum of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity, and working capital
${ }^{5)}$ Defined as total of EBITDA pre plus change in working capital minus capital expenditure
${ }^{6)}$ Aggregated, unconsolidated 100\% values for investments accounted for At-Equity
${ }^{7)}$ In the business unit Carbon Fibers, the allocation of sales to the market segments Energy and Industrial Applications was adjusted at the end of 2023. The previous product group allocation was replaced by a customer allocation. As a result, sales in the two market segments for the period 2023 have been adjusted for reasons of comparability.
Subsequent events
On 10 July 2024, the company decided to discontinue the development and industri alization of graphite anode material (GAM) for use in lithium-ion batteries in the Battery Solutions business line of the Graphite Solutions reporting segment due to changed market conditions, and to close the laboratory in Meitingen. As a result, $€ 2.7$ million were already recognized as restructuring expenses in the reporting period, mainly impairment losses on property, plant and equipment. The company anticipates further expenses of around $€ 1$ to 2 million in the second half of 2024, particularly for personnel measures.
Wiesbaden, August 8, 2024
SGL Carbon SE
The Board of Management of SGL Carbon SE
Dr. Torsten Derr
Thomas Dippold
Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Wiesbaden, August 8, 2024
SGL Carbon SE
The Board of Management
Dr. Torsten Derr
Thomas Dippold
Other Information
Quarterly Sales Revenue and EBITDA pre by Reporting Segment
| 2023 | 2024 | ||||||
|---|---|---|---|---|---|---|---|
| € million | Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | Q2 |
| Sales revenue | |||||||
| Graphite Solutions | 140.9 | 139.7 | 137.8 | 147.3 | 565.7 | 141.3 | 142.9 |
| Process Technology | 31.9 | 32.5 | 31.3 | 32.2 | 127.9 | 33.0 | 36.9 |
| Carbon Fibers | 63.7 | 61.4 | 54.5 | 45.3 | 224.9 | 57.6 | 52.5 |
| Composite Solutions | 39.8 | 39.8 | 34.7 | 39.6 | 153.9 | 37.1 | 29.8 |
| Corporate | 7.4 | 3.4 | 2.9 | 3.0 | 16.7 | 3.6 | 3.3 |
| SGL Carbon | 283.7 | 276.8 | 261.2 | 267.4 | 1,089.1 | 272.6 | 265.4 |
| 2023 | 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| € million | Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | Q2 | 1st Half |
| EBITDA pre | ||||||||
| Graphite Solutions | 30.9 | 34.2 | 34.4 | 34.5 | 134.0 | 36.6 | 35.6 | 72.2 |
| Process Technology | 4.9 | 7.0 | 5.6 | 4.9 | 22.4 | 6.9 | 9.1 | 16.0 |
| Carbon Fibers | 4.3 | 1.8 | $-2.9$ | 4.0 | 7.2 | $-5.2$ | 0.8 | $-4.4$ |
| Composite Solutions | 5.9 | 6.4 | 4.3 | 5.6 | 22.2 | 5.5 | 2.6 | 8.1 |
| Corporate | $-5.9$ | $-1.5$ | 0.6 | $-10.6$ | $-17.4$ | $-1.7$ | $-3.7$ | $-5.4$ |
| SGL Carbon | 40.1 | 47.9 | 42.0 | 38.4 | 168.4 | 42.1 | 44.4 | 86.5 |
Quarterly Consolidated Income Statement
| 2023 | 2024 | ||||||
|---|---|---|---|---|---|---|---|
| € million | Q1 | Q2 | Q3 | Q4 | Full Year | Q1 | Q2 |
| Sales revenue | 283.7 | 276.8 | 261.2 | 267.4 | 1,089.1 | 272.6 | 265.4 |
| Cost of sales | $-224.8$ | $-211.6$ | $-201.2$ | $-214.7$ | $-852.3$ | $-209.6$ | $-197.8$ |
| Gross profit | 58.9 | 65.2 | 60.0 | 52.7 | 236.8 | 63.0 | 67.6 |
| Selling, administrative, R\&D and other operating income/expense | $-38.3$ | $-37.9$ | $-35.3$ | $-34.1$ | $-145.6$ | $-38.3$ | $-40.5$ |
| Result from investments accounted for At-Equity | 5.2 | 5.8 | 3.1 | 4.2 | 18.3 | 4.4 | 3.3 |
| EBIT pre | 25.8 | 33.1 | 27.8 | 22.8 | 109.5 | 29.1 | 30.4 |
| One-off effects/Purchase price allocation effects | $-0.1$ | $-2.1$ | $-0.3$ | $-0.9$ | $-3.4$ | $-0.7$ | $-1.1$ |
| Restructuring income/expenses/impairment losses | 0.0 | $-44.7$ | 0.0 | $-4.8$ | $-49.5$ | $-1.8$ | 0.0 |
| EBIT | 25.7 | $-13.7$ | 27.5 | 17.1 | 56.6 | 26.6 | 29.3 |
| Financial result | $-7.8$ | $-8.0$ | $-8.9$ | $-9.5$ | $-34.2$ | $-9.1$ | $-8.2$ |
| Result before income taxes | 17.9 | $-21.7$ | 18.6 | 7.6 | 22.4 | 17.5 | 21.1 |
| Income tax expense | $-2.6$ | $-3.3$ | $-3.1$ | 28.3 | 19.3 | $-4.6$ | $-4.2$ |
| Net result for the period | 15.3 | $-25.0$ | 15.5 | 35.9 | 41.7 | 12.9 | 16.9 |
| Thereof attributable to: | |||||||
| Non-controlling interests | 0.1 | 0.2 | 0.2 | 0.2 | 0.7 | 0.3 | 0.1 |
| Consolidated net result (attributable to shareholders of the parent company) | 15.2 | $-25.2$ | 15.3 | 35.7 | 41.0 | 12.6 | 16.8 |
Financial Calender
November 7, 2024
- Statement on the First Nine Months 2024
- Conference call for investors and analysts
Investor Relations Contact
SGL Carbon SE
Investor Relations
Söhnleinstrasse 8
65201 Wiesbaden/Germany
Telephone: +49 611 6029-103
Email: [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, Process Technology, Carbon Fibers and Composite Solutions businesses, expected customer demand, expected industry trends and expected trends in the business environment, statements related to SGL Carbon's cost savings programs. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about SGL Carbon's businesses and future financial results, and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, changes in political, economic, legal and business conditions, particularly relating to SGL Carbon's main customer industries, competitive
products and pricing, the ability to achieve sustained growth and profitability in SGL Carbon's Graphite Solutions, Process Technology, Carbon Fibers and Composite Solutions 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
Söhnleinstraße 8
65201 Wiesbaden/Germany
Phone +496116029 -0
www.sglcarbon.com