SGL Carbon: Focus on global growth trends pays off

EQS-News: SGL CARBON SE / Key word(s): Quarterly / Interim Statement/Quarter
Results
SGL Carbon: Focus on global growth trends pays off

08.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SGL Carbon: Focus on global growth trends pays off

* Continued growth in the semiconductor business

  * Weak demand for carbon fibers further impacts Group sales and
    profitability

  * Group sales down slightly at EUR272.6 million (-3.9%), adjusted EBITDA up
    5.0% to EUR42.1 million

  * Adjusted EBITDA margin at 15.4% after 14.1% in the same quarter of the
    previous year

* Outlook for 2024 confirmed


Wiesbaden, May 8, 2024. SGL Carbon had a solid start to the first quarter of
2024. Despite the slight decline in sales of 3.9% to EUR272.6 million (Q1
2023: EUR283.7 million), adjusted EBITDA improved by 5.0% to EUR 42.1 million
(Q1 2023: EUR 40.1 million). Weak demand in the Carbon Fibers business unit in
particular have a negative impact on the Group's sales and earnings
performance. By contrast, slightly higher sales and, especially, the
increase in adjusted EBITDA in the Graphite Solutions and Process Technology
business units had a positive effect on the Group's performance.

"Our Graphite Solutions and Process Technology business units performed well
in the first three months 2024. Composite Solutions has maintained
considerable profitability even after the expiry of a contract with an
automotive customer. We are only concerned about the Carbon Fibers division.
In addition to weak demand from the wind industry, the increasing price
pressure for textile and acrylic fibers is weighing on the business unit,"
explains CEO Dr. Torsten Derr.

Development of the business units
SGL Carbon's largest business unit, Graphite Solutions, generated sales of
EUR141.3 million in Q1 2024 and was thus at the previous year's level (Q1
2023: EUR140.9 million). The continued positive sales development in the
semiconductor and LED market segment was almost completely offset by the
cyclical decline in demand in the other market segments. Sales with
customers from the semiconductor industry increased by EUR9.8 million or 15.6%
to EUR72.4 million in a three-month comparison. This includes sales with
silicon carbide semiconductor customers, whose sales growth amounted to
around 35% and now accounts for around two thirds of total semiconductor and
LED sales. Based on the changed product mix, the adjusted EBITDA of Graphite
Solutions improved by 18.4% to EUR36.6 million (Q1 2023: EUR 30.9 million). The
adjusted EBITDA margin also increased accordingly from 21.9% to 25.9%
quarter-on-quarter.

The Process Technology business unit confirmed the positive development of
the previous year with an increase in sales of 3.4% to EUR33.0 million (Q1
2023: EUR31.9 million). Major projects for international customers and a good
order situation in the service business in particular led to this pleasing
increase. Based on higher capacity utilization and an attractive product
mix, Process Technology's adjusted EBITDA improved by 40.8% to EUR6.9 million
(Q1 2023: EUR4.9 million). The adjusted EBITDA margin developed
correspondingly positively from 15.4% in the same quarter of the previous
year to 20.9% in Q1 2024.

Sales in the Carbon Fibers business unit amounted to EUR57.6 million in Q1
2024, which was below the prior-year quarter's figure of EUR 63.7 million. The
decline is due in particular to the continued weak demand from the wind
industry and the associated capacity adjustment in the carbon fiber
business. In addition, there was increasing price pressure in the textile
and acrylic fiber market segments in the first three months of 2024 due to a
global capacity overhang for these products. Accordingly, the adjusted
EBITDA of Carbon Fibers fell by EUR9.5 million quarter-on-quarter to minus
EUR5.2 million (Q1 2023: EUR4.3 million). It should be noted that the adjusted
EBITDA includes an earnings contribution of around EUR 4.4 million from
companies accounted for At-Equity.

Revenue in the Composite Solutions business unit declined slightly to EUR37.1
million in Q1 2024 (Q1 2023: EUR39.8 million or -6.8%). The decline is due to
the expiry of a project-related supply contract with an automotive customer.
The division develops and produces customized vehicle components made from
various composite materials for automotive customers in Europe and North
America. As a result of the slightly lower volumes, the adjusted EBITDA of
Composite Solutions decreased by EUR0.4 million or 6.8% year-on-year to EUR5.5
million (Q1 2023:
EUR5.9 million), but maintained its adjusted EBITDA margin of 14.8%, unchanged
from the same quarter of the previous year.

Debt, equity and capitel expenditure
At EUR117.2 million as at March 31, 2024, net financial debt remained at the
same level as at the end of previous year (December 31, 2023: EUR115.8
million). The leverage factor remained unchanged at 0.7. Due to the positive
Group result, the equity ratio increased slightly compared to the end of the
2023 financial year to 42.0% (31.12.2023: 41.1%).
The investment volume in the first quarter of 2024 amounted to EUR23.9 million
and was therefore significantly higher than the depreciation and
amortization of EUR13.3 million.
"Around two thirds of our investment volume in the first three months of
2024 was invested in expanding our production capacities for graphite
components for the semiconductor industry. The local expansion of our
machinery is therefore progressing steadily. In addition, we have invested
around EUR6 million in the construction of a new production hall for our joint
venture BSCCB to create additional production capacity for this highly
profitable business," explains Thomas Dippold, CFO of SGL Carbon.


Outlook
In line with the course of business in the first three months of 2024, we
confirm our sales and earnings outlook for the 2024 financial year.
Consolidated sales for the 2024 financial year are expected to be at the
previous year's level and adjusted EBITDA between EUR160 million and EUR170
million.
Further details on the business development in Q1 2024 can be found in the
Quarterly Statement on our webpage SGL financial publications - news for
investors in SGL Carbon | SGL Carbon.


Key figures for the first quarter 2024

  (in EUR million)                       Q1 2024   Q1 2023   Cha-  Change
                                                           nge   in %

  Group sales                          272.6     283.7     -11-  -3.9%
                                                           .1
  Graphite Solutions                   141.3     140.9     0.4   0.3%
  Process Technology                   33.0      31.9      1.1   3.4%
  Carbon Fibers                        57.6      63.7      -6.-  -9.6%
                                                           1
  Composite Solutions                  37.1      39.8      -2.-  -6.8%
                                                           7
  Corporate                            3.6       7.4       -3.-  -51.4%
                                                           8

  EBITDApre*                           42.1      40.1      2.0   5.0%
  Graphite Solutions                   36.6      30.9      5.7   18.4%
  Process Technology                   6.9       4.9       2.0   40.8%
  Carbon Fibers                        -5.2      4.3       -9.-  -
                                                           5
  Composite Solutions                  5.5       5.9       -0.-  -6.8%
                                                           4
  Corporate                            -1.7      -5.9      4.2   71.2%

  EBITDApre margin (in %)              15.4%     14.1%           1.3%-p-
                                                                 ts

  Net result (attributable to          12.6      15.2      -2.-  -17.1%
  shareholders of the parent company)                      6
  Free cash flow                       5.9       10.4      -4.-  -43.3%
                                                           5

                                       Mar. 31,  Dec. 31,  Cha-  Change
                                       2024      2023      nge   in %

  Equity ratio (in %)                  42.0%     41.1%           0.9%-p-
                                                                 ts
  Net financial debt (in EUR million)    117.2     115.8     1.4   1.2%
  ROCE (EBITpre) (in %)                11.4%     11.3%           0.1%-p-
                                                                 ts

* EBITDApre (adjusted EBITDA): Earnings before interest, taxes, depreciation
and amortization adjusted for one-off effects and non-recurring items.


About SGL Carbon

SGL Carbon is a technology-based company and a world leader in the
development and production of carbon-based solutions. Its high-quality
materials and products made from specialty graphite, carbon fibers and
composites serve many industries that are shaping the trends of the future:
climate friendly mobility, aerospace, solar and wind energy, semiconductors,
and LEDs as well as the production of lithium-ion batteries, fuel cell and
other energy storage systems. In addition, SGL Carbon develops solutions for
chemical and industrial applications. Further developments in these areas
demand more intelligent, more efficient, networked and sustainable
solutions. This is where the entrepreneurial vision of SGL Carbon evolves
around: contributing to a smarter world.

In 2023, SGL Carbon SE generated sales of 1.1 billion euros. The company has
approx. 4,800 employees at 29 locations in Europe, North America, and Asia.

Further information on SGL Carbon can be found at www.sglcarbon.com/press.

Important note:
To the extent that our press release contains forward-looking statements,
the latter are based on information that is available at present and on our
current forecasts and assumptions. Forward-looking statements, by their very
nature, entail known as well as unknown risks and uncertainties that may
lead to actual developments and events differing substantially from the
forward-looking assessments. Forward-looking statements must not be
understood to be guarantees. Instead, future developments and events depend
on a large number of factors; they comprise various risks and imponderables
and are based on assumptions that may possibly turn out not to be
appropriate. These include unforeseeable changes to fundamental political,
economic, legal and societal conditions, particularly in the context of our
main customers' industries, the competitive situation, interest and exchange
rate trends, technological developments as well as other risks and
uncertainties. We perceive additional risks e.g. in pricing developments,
unforeseeable events in the environment of companies acquired and Group
member companies as well as in current cost savings programs from time to
time. The SGL Carbon assumes no obligation and does not intend to adjust or
otherwise update these forward-looking statements either.


SGL Carbon SE
Claudia Kellert - Head of Capital Markets & Communications
Soehnleinstrasse 8
65201 Wiesbaden/Germany

Telephone +49 611 6029-100
Fax +49 611 6029-101
press@sglcarbon.com
www.sglcarbon.com

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08.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        SGL CARBON SE
                   Söhnleinstraße 8
                   65201 Wiesbaden
                   Germany
   Phone:          +49 (0)611 6029 - 0
   Fax:            +49 (0)611 6029 - 101
   E-mail:         investor-relations@sglcarbon.com
   Internet:       www.sglcarbon.com
   ISIN:           DE0007235301, DE000A30VKB5, DE000A351SD3
   WKN:            723530
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1897955

End of News EQS News Service
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1897955 08.05.2024 CET/CEST