Investor Relations Presentation January 2015 Table of Contents. - PowerPoint PPT Presentation

Investor Relations Presentation January 2015

Table of Contents. Introduction to SGL Group’s Businesses Page 3 - Reporting Segment Performance Products Reporting Segment Performance Products Page 5 Page 5 - Reporting Segment Graphite Specialties Page 14 - Reporting Segment Carbon Fibers & Materials Page 22 - Reporting Segment Corporate & Others Page 31 - SGL Excellence & SGL2015 Page 35 - Technology & Innovation Page 43 Strategic Realignment and Capital Increase Page 46 Latest Financials 9M/2014 Page 57 Outlook Outlook Page 66 Page 66 Appendix Page 71 Page 2 | Investor Relations Presentation

Introduction to SGL Group’s Businesses Page 3 | Investor Relations Presentation

SGL Group in 2014 . Organization with five business units Graphite & Cathodes & Graphite Process Carbon JVs Carbon Furnace Specialties Technology Fibers & - SGL ACF Electrodes ect odes Linings gs (GS) (GS) (PT) ( ) Composite Co pos te - Brembo SGL Brembo SGL (GCE) (CFL) Materials - Benteler SGL (CF/CM) - etc Corporate Functions & Service Centers Joint Technology & Innovation (T&I) gy Venture Venture Partners SGL Excellence (SGL X) Business Unit Aerostructures (AS, HITCO) reclassified to discontinued operations as of June 30, 2014 Page 4 | Investor Relations Presentation

Reporting Segment Performance Products Page 5 | Investor Relations Presentation

Reporting Segment: Performance Products (PP). Business units 2013 Group sales* PP sales - 2013  Graphite & Carbon p Graphite & Graphite & Electrodes (GCE) Carbon Cathodes Electrodes  Cathodes & Furnace & Furnace 85% Linings (CFL) Linings PP 15% 53% 53% Key industries served Characteristics Strategic priorities  Steel  Steel  Supplying the metal industries  Supplying the metal industries  Adjust infrastructure to reduced  Adjust infrastructure to reduced electrodes demand  Aluminum  Leading competitive position  Increase customer value  Ferrous and non-ferrous  Ongoing growth in BRIC through product quality and metals  Historically high ROS & ROCE consistency y  Historically strong cash flow  Regular shipment of graphite electrodes from Malaysian plant * Adjusted for the reclassification of Business Unit Aerostructures to discontinued operations as of June 30, 2014 Page 6 | Investor Relations Presentation

Graphite & Carbon Electrodes. Graphite electrodes (GE) – steel production in EAFs p p Worldwide steel production [in mt]  Growth in steel production 1600 Blast furnace produces primary (integrated) steel based on iron ore produces primary (integrated) steel based on iron ore Blast furnace fuelled by infrastructure f ll d b i f 1400 Electric arc furnace produces secondary (electric) steel based on scrap demand from emerging countries 1200  Scrap availability limits EAF 1000 1000 growth in emerging countries 800  Due to continued efficiency 600 g gains GE demand growth g only 1 – 2% p.a. 400  GE critical to EAF furnace 200 efficiency but only ~3% of steel making conversion steel-making conversion 0 0 cost 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Source: WSD, IISI, own estimate Page 7 | Investor Relations Presentation

Graphite & Carbon Electrodes. Graphite electrodes for electric steel production p p Steelmaking in an electric arc furnace (EAF) Graphite electrode Section view through EAF Graphite Electrodes F Furnace shell h ll Molten steel 100 – 360 cm Eccentric bottom Rocker tilt tapping (EBT) Tilt cylinder 35 – 80 cm Connecting Pin Teaming ladle Source: steeluniversity.org Page 8 | Investor Relations Presentation

Graphite & Carbon Electrodes. Graphite electrode production process p p p Graphite production  GE critical to EAF furnace efficiency but only ~ 3% of steelmaking conversion cost  GE is a consumable – replaced every 5 to 8h  GE usually sold mostly in annual contracts  Needle coke requirements sourced on basis N dl k i d b i of multiyear contracts  Production process takes up to 3 months Page 9 | Investor Relations Presentation

Graphite & Carbon Electrodes. Graphite electrode market p Capacity by competitor in 2014* – UHP / HP-quality [in tmt] Regional demand in 2013 250 North / Middle 200 Europe / East, Africa CIS 9% 23% 150 150 Americas 100 17% Asia 50 51% 0 SGL Graftech f h Showa h Tokai k i Graphite hi HEG SEC Nippon i *Russia and China: Potential UHP capacity dependent on (DE) (US) Denko Carbon India (IN) (JP) Carbon equipment, technical capability and needle coke availability. (JP) (JP) (IN) (JP) Source: SGL Group’s own estimates (as of March 2014) Page 10 | Investor Relations Presentation

Cathodes & Furnace Linings. Cathodes for the aluminum industry y Aluminum global production scenarios 80  Aluminum demand driven by: 2003 – 2020 / Above pre-crisis scenarios  Population growth and urbanization 67 mio. t 70 o. t]  Further industrialization of BRICs Further industrialization of BRICs m Production [in mio  Weight / strength / cost advantages in 60 higher energy cost environment 50  Cathodes essential to aluminum smelters 50 mio. t 39 mio. t  Existing smelters relining  Existing smelters relining 40 Primary Aluminum  Investment good (5 – 7 years lifetime) 36 mio. t 30  New smelter construction leading first to project demand and long-term to higher 20 relining demand 10 10  Smelters upgrading  Amorphous  graphitized cathodes  Few major established producers of 2003 2005 2007 2009 2011 2013 e 2015 e 2017 e 2019 e graphitized cathodes  Cathodes represent only 2 % of production  Cathodes represent only 2 % of production  Solid fundamentals for aluminum production growth  Solid fundamentals for aluminum production growth costs for 1 t aluminum  Various new projects under construction and additional feasibility studies for capacity increases underway. Source: IAI, Habor, SGL Group’s own estimates, Hydro; Alcoa, CRU Page 11 | Investor Relations Presentation

Cathodes & Furnace Linings. Cathodes for the aluminum industry Aluminum smelter Cathodes 30 – 70 cm 2 30 – 50 cm 3 4 4 1 100 – 380 cm 4 Special Cathode Ramming Sidewall glue blocks pastes blocks Source: SGL Group Page 12 | Investor Relations Presentation

Cathodes & Furnace Linings. Market shares in cathodes Market shares in cathodes 2014  Increasing cathode demand due to new projects. CIS 7% 7% SGL 18% SEC 16% Carbone Savoie Carbone Savoie 18% Various (Chinese & Others) 41% 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 Page 13 | Investor Relations Presentation

Reporting Segment Graphite Specialties Page 14 | Investor Relations Presentation

Reporting segment: Graphite Specialties (GS). Business unit 2013 Group sales** Key industries served  Graphite Specialties (GS)*  Energy – Solar / Battery GS GS  Semiconductor / LED  Semiconductor / LED 21%  Metallurgy  Tool manufacturing  Automotive  High-temperature processes Characteristics Strategic priorities  Sustainable growth potential in  Maintain leading position in all renewable energies, energy bl i core product technologies d t t h l i efficiency and energy storage  Capture opportunities to  Broadest product portfolio disproportionally participate in market recovery  Global footprint  Improve business position in  Improve business position in  C-parts supplier to high tech Asia investment goods industry * Former Business Unit New Markets integrated into Business Unit GS as of May 1, 2013** ** Adjusted for the reclassification of Business Unit Aerostructures to discontinued operations as of June 30, 2014 Page 15 | Investor Relations Presentation

Graphite Specialties. Best solutions for our customers … ... in the PV / Semiconductor ... in the LED Industry ... in the Chemical and Industry Automotive Industry Iso susceptor, heating elements, heat shields / insulation Flange sealed (soft- and rigid Felt) by a gasket MOCVD reactor reactor Reinforced graphite sealing sheet g Iso graphite Iso graphite heating element SiC coated iso graphite Mono Flexible susceptor s scepto crystalline crystalline graphite foil silicon ingot Page 16 | Investor Relations Presentation

Graphite Specialties. The reliable material supplier pp Full integration Most compre- Partnering with to ensure consis- hensive portfolio customers from tent quality in the industry >35 industries  Feedstock  Isostatic  Polysilicon, photovoltaic & semiconductor  Machining  Extruded  LED & sapphire  Purification  Vibro molded  Heat treatment Heat treatment  Impregnation & coating  Impregnation & coating  Die molded  Die molded  Sealings & gaskets  Global production:  Expanded America, Asia / Pacific and  EDM  Carbon fiber reinforced Europe carbon  Glass & refractories  Soft & rigid felt  Mechanical engineering  SiC coating Page 17 | Investor Relations Presentation