Investor Relations Presentation. July 2015

Transcription

1 Investor Relations Presentation July 2015

2 Table of Contents. Introduction to SGL Group s Businesses Page 3 - Reporting Segment Performance Products Page 6 - Reporting Segment Graphite Specialties Page 15 - Reporting Segment Carbon Fibers & Materials Page 23 - Reporting Segment Corporate & Others Page 34 - SGL Excellence, SGL2015, Business Process Excellence Page 38 - Technology & Innovation Page 48 Strategic Realignment Page 51 Latest Financials Q Page 59 Outlook Page 68 Appendix Page 73 Page 2

3 Introduction to SGL Group s Businesses Page 3

4 SGL Group in Organization with five business units and four reporting segments Graphite & Carbon Electrodes (GCE) Cathodes & Furnace Linings (CFL) Graphite Specialties (GS) Process Technology (PT) Carbon Fibers & Composite Materials (CF/CM) Main JVs - SGL ACF* - Brembo SGL - Benteler SGL Performance Products (PP) Graphite Specialties (GS) Corporate & Others (C&O) Carbon Fibers & Materials (CFM) Corporate & Others (C&O): SGL Excellence (SGL X), Technology & Innovation (T&I), Corporate Functions JV Partners Business Unit Reporting Segment Business Unit Aerostructures (AS, HITCO) reclassified to discontinued operations as of June 30, 2014 *51% share reported in CFM Page 4

5 SGL Group at a glance. Based on 2014 reporting structure Reporting Segment 2014 Group sales Business Units Performance Products (PP) Graphite Specialties (GS) Carbon Fibers & Materials (CFM) Corporate & Others (C&O) CFM 22% GS 26% 1.34bn C&O 8% PP 44% Graphite & Carbon Electrodes (GCE) Cathodes & Furnace Linings (CFL) Graphite Specialties (GS) Carbon Fibers & Composite Materials (CF/CM) Process Technology (PT) Key industries served Steel Other metallurgy Energy Chemicals Automotive Corporate SGL Excellence T&I Administrative functions Shares services Major Joint Ventures 51% SGL ACF (carbon fibers and fabrics for BMW Group) 50% Brembo SGL (carbon ceramic brake discs) 50% Benteler SGL (fiber based composite components for automotive industry) Page 5

6 Reporting Segment Performance Products Page 6

7 Reporting Segment: Performance Products (PP). Business units 2014 Group sales PP sales Graphite & Carbon Electrodes (GCE) Cathodes & Furnace Linings (CFL) PP 44% Cathodes & Furnace Linings 21% Graphite & Carbon Electrodes 79% Key industries served Steel Aluminum Ferrous and non-ferrous metals Characteristics Supplying the metal industries Leading competitive position Historically solid ROS & ROCE Historically strong cash flow Strategic priorities Align infrastructure with market development (swing capacities) Reduce unit costs by increasing production and shipments at Malaysian plant Increase customer value with product quality and consistency Page 7

8 Graphite & Carbon Electrodes. Graphite electrodes (GE) steel production in EAFs Worldwide steel production [in million t] Growth in steel production fuelled by infrastructure demand from emerging countries Chinese steel exports limits EAF growth in most regions Continued efficiency gains slowing GE demand growth. GE critical to EAF furnace efficiency but only ~3% of steel-making conversion cost Blast furnace produces primary (integrated) steel based on iron ore Electric arc furnace produces secondary (electric) steel based on scrap Page 8 Source: WSD, IISI, own estimate

9 Graphite & Carbon Electrodes. Graphite electrodes for electric steel production Steelmaking in an electric arc furnace (EAF) Section view through EAF Graphite electrode Furnace shell Graphite Electrodes Molten steel cm Rocker tilt Tilt cylinder Eccentric bottom tapping (EBT) cm Connecting Pin Teaming ladle Page 9 Source: steeluniversity.org

10 Graphite & Carbon Electrodes. Graphite electrode production process GE critical to EAF furnace efficiency but only ~ 3% of steelmaking conversion cost Graphite production GE is a consumable replaced every 5 to 8h GE usually sold mostly in annual contracts Needle coke requirements sourced on basis of multiyear contracts Production process takes up to 3 months Page 10

11 Graphite & Carbon Electrodes. Graphite electrode market 250 Capacity by competitor in 2015* UHP / HP-quality [in tmt] Regional demand in North / Middle East, Africa 9% Americas 17% Europe / CIS 23% 50 Asia 51% 0 SGL (DE) Graftech (US) Showa Denko (JP) Tokai Carbon (JP) Graphite India (IN) HEG (IN) SEC (JP) Nippon Carbon (JP) *Russia and China: Potential UHP capacity dependent on equipment, technical capability and needle coke availability. Source: SGL Group s own estimates (as of March 2015) Page 11

12 Cathodes & Furnace Linings. Cathodes for the aluminum industry Aluminum demand driven by: Population growth and urbanization Further industrialization of emerging countries Weight / strength / cost advantages in higher energy cost environment Cathodes essential to aluminum smelters Existing smelters relining Investment good (5 7 years lifetime) New smelter construction leading first to project demand and long-term to higher relining demand Smelters upgrading Comprehensive product portfolio to cope with all technology trends in the AL industry Page 12 Primary Aluminum Production [in mio. t] Aluminum global production scenarios / Above pre-crisis scenarios 67 mio. t 39 mio. t 36 mio. t 50 mio. t e 2015 e 2017 e 2019 e Solid fundamentals for aluminum production growth Various new projects under construction and additional feasibility studies for capacity increases underway. Source: IAI, Habor, SGL Group s own estimates, Hydro; Alcoa, CRU

13 Cathodes & Furnace Linings. Cathodes for the aluminum industry Aluminum smelter Cathodes cm cm cm Special glue Cathode blocks Ramming pastes Sidewall blocks Page 13 Source: SGL Group

14 Cathodes & Furnace Linings. Market shares in cathodes Increasing cathode demand due to new projects. High level of plant utilization Prepared to supply all regional growth markets CIS 7% Market shares in cathodes 2014 SGL 18% Balanced product portfolio enabling participation in all technological developments SEC 16% Various (Chinese & Others) 41% Carbone Savoie 18% Page 14 Source: SGL Group s own estimates, market shares based on volume (excl. China domestic) Various (Chinese & others): various cathode producers combined in this number, none of them exceeding 5% market share

15 Reporting Segment Graphite Specialties Page 15

16 Reporting Segment: Graphite Specialties (GS). Business unit Graphite Specialties (GS) GS 26% 2014 Group sales Key industries served Energy Solar / Battery Semiconductor / LED High-temperature processes Metallurgy Tool manufacturing Automotive Characteristics Higher value-added products (machining, coating) Specialized, partially tailor-made, products for differentiated customers Innovation driven business Engineered products for customers from > 35 industries some with high growth potential Strategic priorities Focus on forward integration Combine material-know-how and engineering competence Advanced material, equipment, and process solutions in close cooperation with customers Page 16

17 Graphite Specialties. Best solutions for our customers... in the PV, Semiconductor, and LED Industry... in the Battery and Energy Storage Industry... in the Chemical and Automotive Industry SiC coated wafer carrier for LED chip production Meander heater for CZ units Anode material for lithium-ion batteries Reinforced graphite sealing sheet Flexible graphite foil C/C carrier frame for solar wafers Redox flow battery electrode consisting of battery felt and bipolar plate Rotor and vanes for break assistant pumps Page 17

18 Graphite Specialties. The reliable material supplier Full integration to ensure consistent quality Most comprehensive portfolio in the industry Partnering with customers from >35 industries Feedstock Machining Purification Impregnation & coating Global production: America, Asia / Pacific and Europe Isostatic Extruded Vibro molded Die molded Expanded Carbon fiber reinforced carbon Soft & rigid felt SiC coating Lithium ion battery Polysilicon, photovoltaic & semiconductor LED & sapphire Heat treatment Sealings & gaskets EDM Glass & refractories Mechanical engineering Page 18

19 Graphite Specialties. Specialty graphites required where other materials fail Properties can be adapted to requirements Thermal shock resistance Purity Mechanical strength Main properties of carbon and graphite Electrical and thermal conductivity Resistance to high temperatures Corrosion resistance Page 19

20 Graphite Specialties. Fine grain graphite production is complex and requires up to six months Coke & graphite Binder pitch Grinding Mixing Pitch impregnating 800-1,200 C Shaping Extruding, vibration / die molding, isostatic pressing Carbonizing 4-5 months ,000 C Graphitizing Finishing Machining, purifying, coating 2-4 weeks Page 20 Tailor made product Source: GS Production

21 Graphite Specialties. Enabling innovation Examples: Graphite anode material for Lithium-Ion batteries Graphite foils and felts for stationary energy storage 3D filament wound susceptors for semiconductor industry Extra large carriers for photovoltaic Advanced silicon carbide coated carriers for LED CFRC charging carriers for hightemperature applications established Target approx. 1/3 of sales based on new products introduced over the last 4 years new Page 21

22 Graphite Specialties. Major customer industries and market shares 2014 % of total GS sales 2014 Global market share 2014 Energy: Batteries & Nuclear 23% 35% Semiconductor (incl. LED) 12% 15% Chemicals 12% 35% Tool manufacturing 11% 10% Energy: Solar (including Polysilicon) 10% 15% Metallurgical applications 10% 25% Automotive & Transportation 8% 15% High-temperature processes 4% 15% Other industrial applications 10% - Page 22 Source: SGL Group s own estimates

23 Reporting Segment Carbon Fibers & Materials Page 23

24 Reporting Segment: Carbon Fibers & Materials (CFM). Business units* Carbon Fibers / Composite Materials 51% SGL ACF (JVs with BMW) Key industries served Automotive Energy Industrial Recreation Medical Technology Pressure Vessels CFM 22% 2014 Group sales Characteristics New applications in automotive, energy, industrial High earnings improvement potential Complete value chain in house Only EU carbon fiber company SGL ACF 20% CFM sales 2014 Strategic priorities Carbon Fibers / Composite Materials 80% Develop innovative customer solutions along the value chain Optimize carbon fiber and composite capabilities along the value chain Convert Fisipe acrylic fiber lines into PAN precursor production * Former Business Unit Rotor Blades sold as of December 31, 2013, former Business Unit Aerostructures reclassified to discontinued operations as of June 30, 2014 Page 24

25 Carbon Fibers / Composite Materials. Carbon fiber demand growth delayed but all growth drivers intact CF market forecast [July 2014; in thousand mt p.a.] Page 25 Source: SGL Group market research

26 Carbon Fibers / Composite Materials. Carbon fiber capacity Capacity [in mt] Name plate capacities* carbon fiber (excl. oxidized fiber) LT = Low tow fiber 1 24k HT = High tow fiber k * Actual production tends to be 20 30% below name plate capacity Toray** (JP) Toho / Fortafil (JP) SGL Group (DE) MRC (JP) Formosa Plastic (TW) Hexcel (US) Aksa (TR) Cytec (US) Product LT/HT LT HT HT/LT LT LT LT LT Markets Aero / Ind. Aero / Ind. Ind. Ind. Ind. Aero / Ind. Ind. Aero / Ind. Page 26 ** Including Zoltek Source: SGL Group s own estimates, company websites (as of March 2015)

27 Carbon Fibers / Composite Materials. Composite Materials Carbon fibers can be woven or braided and are often impregnated with resin before component production We aim to have a broad range of technologies for prepreging / preforming Weaving (e.g. sporting goods, automotive, medical industry) Preforms (e.g. automotive industry) Braiding (e.g. automotive industry) SGL Kümpers Impregnation (e.g. prepregs for wind turbine blades or aircraft parts) SGL epo SGL Kümpers SGL epo Page 27

28 Carbon Fibers / Composite Materials. SGL Group only integrated European carbon fiber producer Carbon Fibers & Composite Materials Composite Components Refocused on materials & automotive / other industrial components* Raw Material Carbon Fiber Composite Materials PAN Precursor Carbon Fiber Prepreg Preform Automotive & other industrial Fisipe MSP: JV with Mitsubishi Rayon (33%) Prod. Capacity ~ 4kt in UK ~ 2kt in USA SGL ACF: JV with BMW (51%) ~ 6kt in USA SGL epo SGL Kümpers (51%) SGL ACF: JV with BMW (51%) Benteler SGL (50%) Brembo SGL Carbon Ceramic Brakes (50%) * Former Business Unit Rotor Blades sold as of December 31, 2013 and former Business Unit Aerostructures reclassified to discontinued operations as of June 30, 2014 Page 28

29 Carbon in Automotive. Stringent CO 2 Emission Restrictions Globally Global approach to reduce CO 2 emissions Progressively more comfort and safety features on bord Driver for lightweight Page 29

30 Example EU. CO2 reduction targets cannot be achieved without lightweight construction Page 30

31 Carbon in Automotive. Lightweight materials offer significant weight advantages especially CFRP 100 Relative component weight for the same functions in % to -25% -40% -15% -20% -60% 0 Steel Lightweight steel construction Aluminum Magnesium CFRP quasiisotropic CFRP unidirectional Source: N/EK-L; EKP Page 31

32 SGL ACF. Milestone in serial application of carbon fibers in automotive industry Market launch of BMWi3 in November 2013, the first serially produced car with a CFRP passenger cell; market launch of BMW i8 in May 2014 SGL ACF produces carbon fibers in Moses Lake (USA) which are then converted into composite materials (fabrics) in the second joint venture production site in Wackersdorf (Germany) These fabrics are sold to BMW who manufactures carbon based automotive parts for the BMW i3 and i8. Extension of usage of carbon fibers to existing BMW models such as the new 7 series. October 2009: 90 million combined investment volume for initial capacity of 3kt carbon fiber and corresponding fabric capacity Source: BMW Group May 2014: further combined investment of approx. 145 million to expand carbon fiber capacities up to 9kt BMW guarantees certain minimum purchasing volumes at contractually agreed conditions and provides debt financing Page 32

33 Equity accounted JVs in automotive. Complement our carbon fiber product offering Benteler SGL: 50/50 JV between SGL Group and Benteler AG to develop composite based automotive components Leading position in developing structural automotive parts and modern, automated production technologies Successful manufacturing of prototype parts for the BMW i projects Set-up of the first high volume composite components production plant Brembo SGL: 50/50 JV between SGL Group and Brembo SPA for carbon ceramic based automotive brakes Leading global position, supplying most of the high-end car makers, with production sites in Germany and Italy SGL Group s strategic objectives in automotive: Drive the metal substitution process in automotive to become a major automotive parts supplier Ensure that SGL Group s materials are at the forefront in the automotive industry Page 33

34 Reporting Segment Corporate & Others Page 34

35 Reporting Segment: Corporate & Others (C&O) Group sales C&O sales 2014 C&O 8% Corporate 10% Process Technology 90% Business units + corporate Process Technology (PT) plus Corporate T&I Corporate Costs Key industries served by PT Chemicals Pharmaceuticals Environmental Page 35

36 Process Technology. Process solution provider for chemical and related industries Product portfolio Systems Syntheses Distillation, purification, concentration, dilution Absorption, desorption Reactors & converters Steel pickling Equipment Heat exchangers Reactors and internals Quenchers and vessels Pumps and piping Accessories After sales services Spare parts Maintenance / Repairs Training Chemicals Pharma Metals & Mining Energy Solar Environmental Core industries served Core applications Hydrochloric acid (HCl) Phosphoric acid (H 3 PO 4 ) Sulfuric acid (H 2 SO 4 ) Hydrofluoric acid (HF) Oxidizing acids Isocyanates Epichlorohydrine (EPC) Vinyl chloride (VCM) Polysilicon Page 36

37 Process Technology. Business model and 3D growth strategy Engineered process solutions lead to high value leverage on graphite Idea Graphite SiC PTFE Ex. Metals Engineering Value chain Production Process Solutions: Systems 1 st Dimension: Regional roll-out Process Solutions: Equipment 3D growth strategy engine for sustainable profitable growth Leading to higher sales, ROS and ROCE 2 nd Dimension: New products 3 rd Dimension: New industries Page 37

38 SGL Excellence SGL2015 Business Process Excellence Page 38

39 SGL Excellence. Drives efficiency and customer focus SGL X is more than savings started in 2002 ongoing and company wide program integral part of our culture continuously questioning the status quo strives for sustainable improvements provides the right mind and toolset to reduce net working capital sustainably important cornerstone in the development of our people empowers our employees with skills and tools: > 190 trained Black Belts > 200 trained Champions > 900 trained Green Belts > majority of employees SIX SIGMA trained Innovation Excellence New ideas and solutions for profitable growth Operational Excellence Continuous improvement of our manufacturing, administrative and supply chain processes Commercial Excellence Sustainable partnerships with our customers to secure our future People Excellence Well educated employees as foundation of our success Page 39

40 SGL Excellence savings. Since 2002 continuous cost reduction of 335 million in total Annual Net Savings ( m) Page 40

41 SGL2015 cost savings program. Three pillars for improving profitability and market positioning Organizational Restructuring Asset Restructuring Portfolio Restructuring Simplify processes and streamline management structures Review all workstreams and identify redundancies Adjust organizations and Corporate and Service Functions Reduce personnel costs and indirect spend Adjust asset base to changes in market demand Optimize global production network, relocate production Improve capacity utilization Reduce fix costs Use synergies between the Business Units Consolidate sites Carbon fiber business: focus on materials competence Analyze our business portfolio Concentrate portfolio on core activities Investigate options for businesses Page 41

42 SGL2015. Organizational restructuring A Reducing personnel costs by streamlining corporate and service functions Board of Management Upper Management Middle Management Other Employees -40% -22% -14% -14% Affecting approximately 300 jobs Primarily at management levels B Substantial reduction in indirect spend 1 2 Cost management Review of purchasing structures and processes 30 million savings Cost reduction through adjusted guidelines Transparent monitoring 3 4 Page 42

43 SGL2015. Asset restructuring Adjusting production network to changed demand and market environment Closure of Canadian facility in Lachute completed end Q Reduced 30,000 t graphite electrode capacity 110 jobs cut Closure of Italian facility in Narni in nearly completed Production discontinued in H Reduced 30,000 t graphite electrode capacity Dismissal agreement signed by unions all employment contracts (~120) terminated in December 2014 Further projects to optimize production structure Page 43

44 SGL2015. Portfolio restructuring Focusing our business on core competencies and target return on capital Disposal of rotor blade activities Sale of all shares in SGL Rotec to a strategic investor as per December 31, 2013 Strong cooperation in carbon and glass material supply to continue Decision to sell BU Aerostructures in Q2/2014, selling process initiated Reclassification of BU AS to discontinued operations as of June 30, 2014 Decision to terminate JV with Lindner Group in Q1/2015 Next steps Focus on core competence material development and production Page 44

45 Challenge. Levers to improve ROCE ROCE = EBIT(DA) Capital Employed Levers to improve ROCE Improve EBIT(DA): Increase price Increase sales volume NEW! Commercial process optimization Reduce costs (raw materials, indirect spend, ) Reduce Working Capital (short term): Inventory: Receivables: minimize inventory level ONGOING: SGL Excellence, SGL2015 improve customer payment terms Payables: longer payment terms with suppliers Reduce Asset Base (mid term): NEW! Working capital process optimization Limit investments: use existing assets, outsourcing, ONGOING: SGL2015 Asset and portfolio optimization Page 45

46 Business Process Excellence (BPX). New Groupwide program introduced Target is to streamline and standardize cross-bu processes Utilization of standardized IT solutions (SAP) After implementation phase BPX will become part of SGL Excellence Focus on procurement, supply chain and sales organization Procurement - ongoing procurement optimization project launched under SGL2015 to be integrated and continued. Initial savings already achieved in transportation, packaging, office supplies and maintenance. Target: reduce procurement costs and improve profitability Supply chain improve alignment between all stages of the supply chain, from sales to procurement to production, etc. Target: improve supply chain process to further reduce net working capital Sales organization implementation of uniform CRM system, development of new Groupwide standards and best practices for optimized customer and market approach. Target: generate additional, profitable sales External consultant appointed for outside-in view and for project set up phase Recently implemented: more stringent investment process see next page Page 46

47 More stringent investment process. We have introduced more discipline in capex spending Budgeting Project Planning Approval Execution & Monitoring Review Budget decided on by the BoM (strategy defines investments) Professional project manager from Central Engineering BUs remain in charge of Business Case Approval by the BoM Stronger challenging of business assumptions Project execution by Central Engineering Independent project controlling Quarterly Monitoring and review by the BoM Post project audit intensified to capture learnings and evaluate performance Page 47

48 Technology & Innovation Page 48

49 Technology & Innovation. Foundation for profitable growth Technology & Innovation: SGL Group s centralized R&D organization Market driven R&D ensures best-in-class support for current and future customers. Industry networks with suppliers and customers are an essential part of our development strategy thus ensuring close contacts to our markets. Global networks with leading universities cover the basic research. Material, process and application know-how is the platform for our development clusters: synthetic graphite, carbon fibers and composites, energy systems, and ceramic materials. Strategic IP management safeguards our products and processes and is a driver of our long term market success. Page 49

50 Technology & Innovation. Activity areas of T&I in 2014 Raw materials & synthetic graphite development for steel and aluminum industry Reduce graphite electrode consumption in EAF by optimizing raw materials, oxidation resistance and GE-joint. Increase energy efficiency of aluminum production process with improved cathode recipes and advantageous cathode designs. Elongate lifetime of furnace linings by improved microporous carbon-ceramic recipes and advanced lining bloc designs. Strengthen carbon fiber based value chain Operate carbon fiber pilot line and improve carbon fiber production processes. Develop new carbon fiber grades based on own precursor. Develop new composite system based on Thermoplastic matrix as well as SnapCure thermoset resins for automotive applications. Energy systems Low cost graphite based anode materials for Li-ion batteries. New carbon & graphite based composite anode materials with enhanced energy density for 3 rd generation Li-ion batteries. Develop carbon felt with enhanced surface characteristics and improved electrochemical behavior for stationary energy storage systems such as redox flow batteries. Advanced gas diffusion layers for PEM fuel cells for automotive and stationary applications. Improved Ceramic Materials Develop new C/SiC materials and manufacturing methods for complex shaped ceramic structures. Page 50

51 Strategic Realignment Page 51

52 September Cornerstones of strategic realignment defined 15% ROCE* 2 Improve performance Generate shareholder return 3 Minimum return on capital Right size 1 1) Right size SGL2015 asset and portfolio restructuring 2) Improve performance SGL2015 organizational restructuring SGL Excellence savings BU streamlining Process excellence initiatives 3) Generate shareholder return Define selective growth areas *EBITDA divided by capital employed Capital employed Page 52

53 Right size. Business and asset portfolio aligned with market and core competencies Strategic Focus Measures Status Asset restructuring Relocation, consolidation, closure Focus on cost competiveness Portfolio restructuring Focus on material competence and target return on capital Closure Lachute (Canada) Termination production Narni (Italy) Production network optimization in graphite specialties Divestment rotor blade activities (former SGL Rotec) Divestment of Hitco progressing New: Termination Joint Venture SGL Lindner Ongoing Decided Page 53

54 Improve performance. Manifold efficiency measures lead to optimized cost structures Savings target increased from 150 million to 240 million in two steps SGL2015 measure Savings targets Status** Operational improvements and SGL Excellence (e.g. raw material and energy costs) Organizational restructuring (e.g. staff costs, indirect spend) ~ 115 million ~ 60 million 85% 95% Divestments (Rotec, Hitco) Asset restructuring (e.g. Lachute, Narni) ~ 15 million* ~ 50 million 50% 70% Page 54 *not included in reported savings; **March 31, 2015

55 Generate shareholder return (I). Stringent resource allocation to targeted areas Growth from existing assets Substitution of traditional with carbon fiber materials, e.g. in the wind industry, is increasing demand for carbon fibers Structural growth in solar, LED, and semiconductor industry results in greater consumption of isostatic graphite Demand for graphite electrodes will rise as scrap steel becomes increasingly available Demand for cathodes is increasing as new aluminum smelters are constructed Page 55

56 Generate shareholder return (II). Stringent resource allocation to targeted areas Selective growth investments Increasing usage of lithium ion batteries, e.g. by the automotive industry, is boosting demand for our anode materials Lightweight automotive construction requires more carbon fiber based materials, such as those supplied by SGL ACF Profitable growth in high performance carbon fiber based materials is safeguarded by proprietary precursor from Fisipe Page 56

57 Cultural transformation. Key prerequisite for successfully implementing change New Board of Management with new management style New KPI targets provide clear measurability of success New incentive schemes implemented with new remuneration system aligns all management personnel to Board of Management New cost awareness on all levels Introducing process excellence initiatives Page 57

58 How we intend to transform SGL Group. Guided by clearly defined targets Create flexibility for restructuring and repositioning with capital increase and disposal proceeds (HITCO, etc.) Stop loss makers and cash drainers by restructuring or disposing Capex for selective growth opportunities subject to minimum hurdle rates Return on capital is key management principle for strategic realignment and future investment Gearing ~ 0.5 Equity ratio > 30% Net debt/ebitda < 2.5 Positive net result Positive free cash flow* ROCE 15%** * Excluding disposal proceeds ** ROCE defined as EBITDA/Capital employed Page 58

59 Latest Financials Q Page 59

60 Performance Products. Substantial EBIT improvement despite lack of recovery in graphite electrodes in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT Sales revenue down 3 %, (currency adjusted -12%) due mainly to lower volumes and prices in graphite electrodes Nevertheless, recurring EBIT more than doubled due to cost relief related to SGL2015 and lower raw material prices SGL2015 related restructuring nearly completed thus only 0.8 million non recurring charges in reporting period SGL2015 savings 9.3 million, thereof 2.1 million from SGL Excellence Page 60 * Non-recurring charges of 0.8 million in Q1/2015 and 0.8 million in Q1/2014

61 Graphite Materials & Systems. Lower sales and earnings resulting mainly from big ticket order in H1/2014 in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT Sales revenue down 9% (currency adjusted down 15%) Mainly driven by big ticket order in H1/2014 Continued strong demand for anode materials for Li-ion-batteries Weaker H1/2015 sales in Process Technology due to subdued order intake in 2014 Order intake overall showing signs of stabilization to slight volume improvements Recurring EBIT declined by 30% due to Lower capacity utilization Partially compensated by one-off gains from a land sale and insurance claims SGL2015 savings 3.4 million, thereof 1.9 million from SGL Excellence Page 61 * Non-recurring charges of 0.1 million in Q1/2014

62 Carbon Fibers & Materials. Substantial progress towards break even in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT Sales revenue increased by 16 % (currency adjusted 9%) Significantly increased sales contributions from our proportionally consolidated joint ventures with BMW Group (SGL ACF, 51% share) CF/CM benefited from improved demand from various customer industries Recurring EBIT close to break even Strong EBIT improvement at CF/CM due to better volumes and thus higher utilization Expected lower ramp-up costs for carbon fiber capacity expansion in Moses Lake and Wackersdorf (SGL ACF) SGL2015 savings 1.3 million, thereof 0.7 million from SGL Excellence Page 62 * Non-recurring charges of 0.1 million in Q1/2014

63 T&I and Corporate. SGL2015 savings offset by various effects in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT Recurring EBIT decreased by 26% - savings from SGL2015 more than offset by higher provisions for management incentive plans compared to the prior year, which were calculated based on an expected better target attainment positive one-time effects in Q1/2014 relating to SGL2015 SGL2015 savings 1.2 million *Non-recurring charges of 1.4 million in Q1/2014 Page 63

64 Group. Improved earnings despite flat sales demonstrates effectiveness of SGL2015 in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges EBIT before non-recurring charges Non-recurring charges EBIT Results from investments accounted for At-Equity Net financing result Results from continuing operations before income taxes Consolidated net result attributable to the shareholders of the parent company EPS, basic and diluted (in ) Includes cost savings of 15 million from SGL2015, of which approx. 5 million attributable to SGL Excellence Result from investments accounted for At-Equity improves to break even level mainly due to Brembo SGL and lower costs related to SGL Lindner Net result and EPS includes loss from discontinued operations totaling 5 million (Q1/2014: loss of 5million) relating to HITCO Page 64

65 Balance sheet. Solid despite slight deterioration in million Total assets 2, ,170.3 Equity ratio (in %) Total liquidity Net financial debt Gearing (net debt/equity) Currency effects on total assets amounted to 137 million Equity ratio declined slightly due to net loss of 15 million in the reporting period discount factor for calculation of pension provisions in Germany decreased further to 1.5% resulting in 20 million (after tax) burden on equity partially compensated by positive currency gains of 25 million Page 65

66 Free cash flow. Slightly less negative than anticipated in March 2015 Continuing operations in million Q1/2015 Q1/2014 Cash flow from operating activities Capital expenditures in property, plant and equipment and intangible assets thereof SGL ACF thereof SGL Group excluding SGL ACF Cash provided by other investing activities* Free cash flow Page 66 Main reason for higher negative cash flow compared to prior year is seasonally typical working capital buildup and non recurring cash out for USD hedges (relating to HITCO impairment earlier this year) However, both free cash flow from continued operations and free cash flow including discontinued operations (HITCO) at minus 91 million slightly better than anticipated Main deviations to guidance is lower than expected cash out for capex and restructuring in Q1/2015 these have shifted into later quarters Thus full year guidance remains unchanged at some 100 million negative free cash flow from continuing operations *Payments for capital contributions in investments accounted for At-Equity, proceeds from dividend payments and sale of intangible assets and property, plant and equipment

67 Solidly financed. Capital increase in October 2014 restores balance sheet metrics SGL Group successfully prolonged maturity profile in December 2013 Supported by previously issued debt instruments (June 2009 and April 2012) SGL Group has solid balance sheet ratios and liquidity post the October 2014 capital increase 250 million Corporate Bond at 4.875% (maturity 2021) 200 million credit facility, undrawn (maturity 2017) million* Convertible Bond at 3.5%, adjusted conversion price of (maturity 2016) (originally 190 million prior to conversion) 240 million Convertible Bond at 2.75%, adjusted conversion price of (maturity 2018) Equity ratio: 25% Gearing 0.89 Total liquidity: million Page 67 * as of March 31, 2015

68 Outlook Page 68

69 SGL Group in Organization streamlined to three from five business units Performance Products (PP) Graphite electrodes Carbon electrodes Cathodes Furnace linings Graphite Materials & Systems (GMS) Graphite specialties Process technology Carbon Fibers & Composite Materials (CF/CM)* Carbon fibers Composite materials Main JVs - SGL ACF* - Brembo SGL - Benteler SGL Corporate Functions & Service Centers Technology & Innovation (T&I) JV Partners Page 69 SGL Excellence (SGL X) *CF/CM and 51% of SGL ACF form Reporting Segment Carbon Fibers & Materials (CFM)

70 Business unit outlook Savings driven improvement at PP and lower ramp up costs in CFM Performance Products (PP): Small percentage increase in sales, substantial percentage increase in EBIT. Graphite electrode volumes below prior year level. Higher volumes at cathodes anticipated. As expected, some raw material induced price adjustments in graphite electrodes. Improvement driven by SGL2015 and raw material cost reductions. Recent currency development supportive for EBIT Graphite Materials & Systems (GMS): Nearly stable sales and EBIT despite nonrecurrence of big ticket order. Strong demand from Li-ion-battery customers to continue, mixed demand situation in other customer industries. Carbon Fibers & Materials (CFM): Small percentage increase in sales and significant improvement in EBIT. Better volumes in both CF/CM and SGL ACF may be partially offset by crude oil based pricing of Fisipe acrylic fibers. EBIT improvement based on overall improved demand and lower ramp up costs at SGL ACF in H2 Corporate: Relatively stable on lower (SGL2015 related) base and despite consulting costs for new efficiency improvement projects Page 70

71 Group outlook Net profit should benefit from improved EBIT and lower restructuring expenses Full year Group sales expected stable - lower prices resulting from reduced raw material costs, compensated by currency gains. In graphite electrode markets we see no relief in foreseeable future due to continued Chinese steel export growth Group recurring EBITDA and EBIT: substantial increase, with H2 expected stronger than H1 (time lag of raw material cost relief, SGL ACF completes capacity expansion in H1) SGL2015: mid double digit million savings. As most SGL2015 measures implemented, only single digit million restructuring expenses remain. Mid double digit million restructuring cash- out Net result to improve due to better EBIT and lower restructuring expenses but remaining in negative territory Capex for the first time in many years to decrease to D&A level of approx. 90 million Free cash flow: operational improvement to be partially offset by planned restructuring cash out and continued capex for capacity expansion at SGL ACF, leading to increased net debt ROCE to improve in line with improvement in EBIT and EBITDA Page 71

72 SGL Group in Strategic realignment will continue SGL2015 savings target increased in 240 million Business Process Excellence: implementation of initiatives Commercial process optimization (sales approach, contractual optimization, payment terms) Working capital process optimization (all aspects) More stringent investment process Asset and portfolio optimization ongoing Discontinuation of SGL Lindner JV in decided in Q1 Further news flow to follow in next months Strengthening the foundation for returning to profitable growth! Page 72

73 Appendix Page 73

74 Global presence 11 production sites North America 23 production sites Europe 8 production sites Asia * Page 74 * Business Unit Aerostructures reclassified to discontinued operations as of June 30, 2014

75 Shares in issue and shareholder structure. Basic shares Security Identification Number ISIN Number DE Cusip Number Number of Shares (as at June 30, 2015) 91,806,368 Free float ~ 37% Reported shareholdings according to 21 f. WpHG SKion GmbH (Oct 15, 2014) 27.46% BMW AG (Oct 15, 2014) 18.44% Volkswagen AG (Dec 15, 2014) 9.92% Furthermore, and based on the respective voting rights announcements we received, Voith GmbH, Heidenheim, currently holds more than 5% of the voting rights of SGL Carbon SE. Page 75

76 Debt market instruments. Convertible notes (maturity 2016) Coupon 3.5% Principal Amount Outstanding Amount (as at June 30, 2015) 190 million million Adjusted Conversion Price Conversion Right (as at June 30, 2015) 4.93 million shares Issue Date 30 June 2009 Date of Maturity 30 June 2016 Convertible notes (maturity 2018) Coupon 2.75% Principal Amount Corporate bond (maturity 2021) Coupon 4.875% Principal Amount 240 million Adjusted Conversion Price Conversion Right (as at June 30, 2015) 5.86 million shares Issue Date 25 April 2012 Date of Maturity 25 January million Issue Date 12 December 2013 Date of Maturity 15 January 2021 Page 76

77 Capital Expenditure by Business Area. Major investment focus in 2014 PP GS CFM Additional improvements in production processes at Malaysian plant Replacement and EHSA in USA and Spain Measures to achieve efficiency improvements in the production process, also in the context of SGL2015 Transfer of some productions steps from Germany to Poland New green production in Poland Tripling of carbon fiber capacities at SGL ACF New polymerization facility and conversion of spinning line to PAN precursor production in Portugal Automation at SGL Kümpers (Germany) Capital expenditure and depreciation [in million] 240m * Reported capex of million for 2010 includes 7.4 million cash inflow for services rendered by SGL Group. Therefore cash outflow for capex was million m m* 139m Central projects / Corporate Carbon Fibers & Materials Graphite Materials & Systems Capex (left hand column) Depreciation (right hand column) 132m 95m Performance Products 133m Page 77

78 Financial calendar / contact details. Financial calendar 2015 March 18, 2015 Annual Report 2014 April 29, 2015 Report on the first quarter 2015 April 30, 2015 Annual General Meeting August 6, 2015 Report on the first half year 2015 November 5, 2015 Report on the first nine months 2015 Contact SGL CARBON SE Soehnleinstrasse Wiesbaden Germany Phone +49 (0) Fax +49 (0) investor-relations@sglgroup.com Page 78

79 Important note. This presentation contains forward looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward looking statements are associated with known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from the assessment published in this presentation. Forward looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal and business conditions, particularly relating to our main customer industries, such as electric steel production, to the competitive environment, to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that may arise in our opinion include price developments, unexpected developments associated with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs. SGL Group assumes no responsibility in this regard and does not intend to adjust or otherwise update these forward looking statements. Page 79