Graftech International Ltd. · NYSE:EAF

Graftech International — Q1 2019 Earnings Presentation

16 slides from Graftech International's earnings presentation, May 1, 2019

1. Slide 1: Q1 2019 Results

   = GrarTech = International lay Q1 2019 Results = May 1, 2019

2. Slide 2: Forward-looking Statements

   Forward-looking Statements NOTE ON FORWARD-LOOKING STATEMENTS: This presentation and related discussions may contain forward-looking statements that reflect our current views with respect to, among other things, future events and financial performance. You can identify these forward-looking statemen

3. Slide 3: Building Safer and More Efficient Operations

   Building Safer and More Efficient Operations Total Recordable Injury Rates1 2.00 1.89 1.91 1.74 1.75 1.63 1.49 1.51 1.50 1.32 1.25 1.00 2013 2014 2015 2016 2017 2018 2019 YTD 1 Year-to-date 2019 as of March 31, 2019. Total recordable injury rates measured per 200,000 hours worked 3

4. Slide 4: Solid Quarterly Results; Progressing Long-term Strategy

   Solid Quarterly Results; Progressing Long-term Strategy  Market fundamentals • Q1/19 weighted average realized price of $9,954 per MT1, in line with prior year quarter • Graphite electrode market is more balanced with recent spot pricing moving off historic highs • Steel production and graphite ele

5. Slide 5: Long-term Contracts Provide Profitability and Visibility

   Long-term Contracts Provide Profitability and Visibility  Vertical integration supports commercial strategy to sell majority of volumes on long-term (3- to 5-year), take-or- pay, fixed price and volume contracts  Long-term agreements (LTAs) with >100 customers; ~675,000 MT contracted at a weighted

6. Slide 6: Higher Net Sales Driven by Higher Volumes

   Higher Net Sales Driven by Higher Volumes  Q1/19 sales volumes up from the prior year quarter with completion of debottlenecking projects  Q1/19 weighted average realized price in line with prior year quarter and preceding quarter  Q1/19 net sales up from the prior year quarter due to higher volu

7. Slide 7: Continued Strong Financial Results

   Continued Strong Financial Results  Financial results benefitted from increased net sales offset by higher cost of sales; cost of sales continue to be impacted by higher third party needle coke costs  Q1/19 Free cash flow3 was up 12% from the prior year period ‒ Q1/18 Free cash flow was impacted p

8. Slide 8: $284M Q1 2019 Adjusted EBITDA from Continuing Operations

   $284M Q1 2019 Adjusted EBITDA from Continuing Operations $33 $5 $33 $16 $284 $197 Net Income D&A Net interest Income taxes Net adjustments* Adj. EBITDA from Cont'g Operations *Includes Pension and OPEB plan expenses, Rationalization-related gains, Public offering expenses, Non-cash loss on foreign c

9. Slide 9: Strong Track Record of Shareholder Returns

   Strong Track Record of Shareholder Returns Capital Allocation Since IPO1 4% of free cash flow retained Debt repayment 181 25% of free cash flow to pay debt Quarterly dividends 94 737 Share repurchases 225 71% of free cash flow returned to shareholders Special dividends 203 2 Post IPO Free Cash Flow

10. Slide 10: Balance reinvestment, debt repayment, shareholder returns

    Balance reinvestment, debt repayment, shareholder returns Solid financial results  As of 3/31/19, total liquidity was approximately $288M1 including $42M in cash and equivalents  Trailing 12-month free cash flow2 of $784M Reinvest in the business to maintain productive, high quality, low cost oper

11. Slide 11: Steel Industry Trends

    Steel Industry Trends 1 U.S. EAF Steel Capacity (MMT)1 12 Announced U.S. EAF capacity additions 88 support graphite electrode demand 76 2018 Announced Additions 2022E 2 Steel Production Growth (ex-China)2 Near-term steel production growth 2.2% 2.8% moderating in some key markets 1.7% 4% 2018A 2019F

12. Slide 12: Key Investment Highlights

    Key Investment Highlights  Mission critical, highly engineered consumable for the high growth EAF market  Market leading high capacity, low cost, high quality production  Vertical integration provides security of supply and sustainable competitive advantage  Long-term contracts provide profitabi

13. Slide 13: Disclosures

    Disclosures GRaF /ec!; 13

14. Slide 14: Non-GAAP financial measures

    Non-GAAP financial measures Investors are encouraged to read the information contained in this presentation in conjunction with the following information, the Forward-looking statements information on slide 1 and the factors described under the “Risk Factors” section of the Company’s annual report o

15. Slide 15: Reconciliation to Adjusted EBITDA from Cont'g Operations

    Reconciliation to Adjusted EBITDA from Cont’g Operations For the Three Months Ended March 31, (in thousands) 2019 2018 Net income (loss) 197,436 223,673 Add: Discontinued operations - (1,626) Depreciation and amortization 15,585 16,328 Interest expense 33,700 37,865 Interest income (414) (115) Incom

16. Slide 16: Reconciliation to Free Cash Flow

    Reconciliation to Free Cash Flow For the Three Months Ended March 31, (in thousands) 2019 2018 Net cash provided by operating activities 156,817 140,553 Capital expenditures (14,569) (14,025) Free cash flow 142,248 126,528 For the Three Months Ended For the Twelve Months Ended June 30, September 30,

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