Graftech International Ltd. · NYSE:EAF
Graftech International — Q1 2024 Earnings Presentation
17 slides from Graftech International's earnings presentation, Apr 26, 2024
Slide 1: Q1 2024 Results
NYSE: EAF www.graftech.com Q1 2024 Results April 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 Strategic Initiatives To Reduce Costs and Preserve Long-term Flexibility
Successfully Executing Strategic Initiatives To Reduce Costs and Preserve Long-term Flexibility 1 Investing in customer engagement and our customer value proposition 2 Executing our cost rationalization and footprint optimization plan 3 Pursuing long-term growth opportunities that leverage our uniqu
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 Q1 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 ▪ Q1 2024 global steel production, excluding China, of 213 million tons versus 205 million tons in Q1 2023(1) ▪ Production growth led by India and Turkey; production declined slightly in the EU and i
Slide 6: Production and Sales
Production and Sales ▪ Q1 2024 production volume up 65%, sales volume up 43% and net sales down 2% compared to Q1 2023 ▪ Net sales decline primarily reflects: ▪ Lower weighted-average realized prices and shift in mix from LTA(1) volume to non-LTA(1) volume ▪ Mostly offset by higher sales volume, as
Slide 7: Earnings and Cash Flow
Earnings and Cash Flow (1) (2) ▪ Q1 2024 net loss of $31 million, or $0.12 per share , and adjusted EBITDA of $0.2 million (2) ▪ Q1 2024 net cash used in operating activities of $1 million and adjusted free cash flow of negative $11 million (2) ▪ Significant cost improvement, as cash costs on a per
Slide 8: Balance Sheet Strength and Financial Flexibility
Balance Sheet Strength and Financial Flexibility ▪ Liquidity of $275 million as of March 31, 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) $275 $950 $110 Revo
Slide 9: Our Optimism about the Long-term Prospects for GrafTech Remains Intact
Our Optimism about the Long-term Prospects for GrafTech Remains Intact Long-term Tailwinds: ▪ Shift to electric arc furnace (“EAF”) steelmaking expected to continue driven by decarbonization efforts ▪ Graphite electrode demand growth anticipated driven by this ongoing transition ▪ Needle coke demand
Slide 10: Why GrafTech?
Why GrafTech? An Industry Leader in the Production of High-Quality Graphite Electrodes ▪ Graphite electrodes are essential to the operation of an EAF ▪ Reflecting environmental benefits, growth in EAF steelmaking expected to continue outpacing integrated steelmaking Sustainable Competitive Advantage
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to providing results that are determined in accordance with GAAP, we have provided certain financial measures that are not in accordance with GAAP. EBITDA, adjusted EBITDA, adjusted net loss, adjusted loss per share, free cash flow, adjusted free cash flow and
Slide 12: Reconciliation to Adjusted Net Loss
Reconciliation to Adjusted Net Loss Three Months Ended Mar 31, Dec 31, Sept 30, June 30, Mar 31, ($ in thousands) 2024 2023 2023 2023 2023 Net loss $ (30,869) $ (217,409) $ (22,621) $ (7,851) $ (7,369) Adjustments, pre-tax: Pension and OPEB plan expenses(1) 347 3,578 914 899 918 Rationalization expe
Slide 13: Reconciliation to Adjusted Loss Per Share
Reconciliation to Adjusted Loss Per Share Three Months Ended Mar 31, Dec 31, Sept 30, June 30, Mar 31, 2024 2023 2023 2023 2023 Loss per share $ (0.12) $ (0.85) $ (0.09) $ (0.03) $ (0.03) Adjustments per share, pre-tax: Pension and OPEB plan expenses(1) - 0.01 - - 0.01 Rationalization expenses(2) 0.
Slide 14: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended Mar 31, Dec 31, Sept 30, June 30, Mar 31, ($ in thousands) 2024 2023 2023 2023 2023 Net loss $ (30,869) $ (217,409) $ (22,621) $ (7,851) $ (7,369) Add: Depreciation and amortization 13,883 13,836 16,954 15,322 10,777 Interest expense 15,626 15,655
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 Mar 31, Dec 31, Sept 30, June 30, Mar 31, ($ in thousands) 2024 2023 2023 2023 2023 Net cash (used in) provided by operating activities $ (530) $ 9,292 $ 51,495 $ (9,024) $ 24,798 Capital expenditures (10,511) (5,753) (8
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 Mar 31, Dec 31, Sept 30, June 30, Mar 31, Dec 31, ($ in thousands, except per MT amounts) 2024 2023 2023 2023 2023 2023 Cost of goods sold $ 135,204 $ 144,393 $ 157,603 $ 157,216 $ 112,645 $ 571,857 Less: Depreciation and
Slide 17: Ticker: EAF (NYSE) GrafTech International Ltd. Website: www.graftech.com
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
GrafTech International — Q1 2024 Earnings Presentation on 6ix