Graftech International Ltd. · NYSE:EAF
Graftech International — Q2 2024 Earnings Presentation
17 slides from Graftech International's earnings presentation, Jul 26, 2024
Slide 1: Q2 2024 Results
NYSE: EAF www.graftech.com Q2 2024 Results July 26, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation and related discussions may contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements
Slide 3: Successfully Executing Initiatives To Manage Current Environment and Preserve Long-term Flexibility
Successfully Executing Initiatives To Manage Current Environment and Preserve Long-term Flexibility 1 Investing in customer engagement and our customer value proposition 2 Executing our production plans and cost rationalization initiatives 3 Pursuing long-term growth opportunities that leverage our
Slide 4: Prioritizing Safety
Prioritizing Safety Total Recordable Incident Rate (“TRIR”)(1) 0.95 0.94 0.61 0.51 0.49 0.32 2019 2020 2021 2022 2023 Q2 YTD 2024 (1) TRIR measured per 200,000 hours worked. 4
Slide 5: Steel Industry Trends
Steel Industry Trends ▪ Steel industry production remains constrained by global economic uncertainty (1) ▪ Q2 2024 global steel production, excluding China, of 212 million tons versus 213 million tons in Q2 2023 Steel Capacity Utilization Rates(2) 77% 77% 76% 76% 73% 69% 69% 69% 68% 67% Q2 2023 Q3 2
Slide 6: Production and Sales
Production and Sales ▪ Q2 2024 production volume up 6%, sales volume down 3% and net sales down 26% compared to Q2 2023 (1) (1) ➢ Net sales decline primarily reflects lower weighted-average realized prices and shift in mix from LTA volume to non-LTA volume ▪ Sequentially, Q2 2024 production volume u
Slide 7: Earnings and Cash Flow
Earnings and Cash Flow (1) (2) ▪ Q2 2024 net loss of $15 million, or $0.06 per share , and adjusted EBITDA of $14 million (2) ▪ Q2 2024 net cash used in operating activities of $37 million and adjusted free cash flow of negative $44 million (2) ▪ Significant cost improvement, as cash costs on a per
Slide 8: Liquidity and Debt Maturity Profile
Liquidity and Debt Maturity Profile ▪ Liquidity of $232 million as of June 30, 2024 reflects financial covenant that limits borrowing availability under the revolver ▪ No debt maturities until December 2028 Liquidity Debt Maturity Profile (in millions) (in millions) $232 $950 Revolver $111 Availabil
Slide 9: Our Optimism about the Long-term Prospects for GrafTech Remains Intact
Our Optimism about the Long-term Prospects for GrafTech Remains Intact Long-term Tailwinds: ▪ Shift to electric arc furnace (“EAF”) steelmaking expected to continue driven by decarbonization efforts ▪ Graphite electrode demand growth anticipated driven by this ongoing transition ▪ Needle coke demand
Slide 10: Why GrafTech?
Why GrafTech? An Industry Leader in the Production of High-Quality Graphite Electrodes ▪ Graphite electrodes are essential to the operation of an EAF ▪ Reflecting environmental benefits, growth in EAF steelmaking expected to continue outpacing integrated steelmaking Sustainable Competitive Advantage
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to providing results that are determined in accordance with GAAP, we have provided certain financial measures that are not in accordance with GAAP. EBITDA, adjusted EBITDA, adjusted net loss, adjusted loss per share, free cash flow, adjusted free cash flow and
Slide 12: Reconciliation to Adjusted Net Loss
Reconciliation to Adjusted Net Loss Three Months Ended June 30, Mar 31, Dec 31, Sept 30, June 30, ($ in thousands) 2024 2024 2023 2023 2023 Net loss $ (14,752) $ (30,869) $ (217,409) $ (22,621) $ (7,851) Adjustments, pre-tax: Pension and OPEB plan expenses(1) 477 347 3,578 914 899 Rationalization ex
Slide 13: Reconciliation to Adjusted Loss Per Share
Reconciliation to Adjusted Loss Per Share Three Months Ended June 30, Mar 31, Dec 31, Sept 30, June 30, 2024 2024 2023 2023 2023 Loss per share $ (0.06) $ (0.12) $ (0.85) $ (0.09) $ (0.03) Adjustments per share, pre-tax: Pension and OPEB plan expenses(1) - - 0.01 - - Rationalization expenses(2) - 0.
Slide 14: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended June 30, Mar 31, Dec 31, Sept 30, June 30, ($ in thousands) 2024 2024 2023 2023 2023 Net loss $ (14,752) $ (30,869) $ (217,409) $ (22,621) $ (7,851) Add: Depreciation and amortization 14,319 13,883 13,836 16,954 15,322 Interest expense 15,609 15,6
Slide 15: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow
Reconciliation to Free Cash Flow and Adjusted Free Cash Flow Three Months Ended June 30, Mar 31, Dec 31, Sept 30, June 30, ($ in thousands) 2024 2024 2023 2023 2023 Net cash (used in) provided by operating activities $ (36,855) $ (530) $ 9,292 $ 51,495 $ (9,024) Capital expenditures (6,979) (10,511)
Slide 16: Reconciliation to Cash Cost of Goods Sold per MT
Reconciliation to Cash Cost of Goods Sold per MT Three Months Ended Year Ended June 30, Mar 31, Dec 31, Sept 30, June 30, Dec 31, ($ in thousands, except per MT amounts) 2024 2024 2023 2023 2023 2023 Cost of goods sold $ 131,970 $ 135,204 $ 144,393 $ 157,603 $ 157,216 $ 571,857 Less: Depreciation an
Slide 17: GrafTech International Ltd. Contact Information
Ticker: EAF (NYSE) GrafTech International Ltd. Website: www.graftech.com 982 Keynote Circle Contact: Michael Dillon Brooklyn Heights, Ohio 44131 Email: investor.relations@graftech.com Phone: 1.216.676.2000
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