Graftech International Ltd. · NYSE:EAF

Graftech International — Q2 2021 Earnings Presentation

17 slides from Graftech International's earnings presentation, Aug 6, 2021

  1. Slide 1: Q2 2021 Results

    Q2 2021 Results August 6, 2021 NYSE: EAF www.graftech.com

  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: Prioritizing Safety

    Prioritizing Safety Total Recordable Injury Rates1 1.63 1.55 0.95 0.51 0.43 2017 2018 2019 2020 Q2 YTD 2021 1 Total recordable injury rates measured per 200,000 hours worked. 2021 YTD as of June 30, 2021. 3

  4. Slide 4: Industry Conditions

    Industry Conditions Steel Industry Fundamentals continued to improve in Q2  Global steel production, excluding China, of ~221 million tons in Q2; up 2% sequentially vs. Q1 and up 33% year-over-year1  Global steel manufacturing utilization rate, excluding China, improved to ~75% in Q2, from ~73% in

  5. Slide 5: Commercial Outlook

    Commercial Outlook  Market conditions have continued to improve in 2021  Seeing improved demand for our products resulting in strong sequential and year over year performance  Expect realized non-LTA pricing to improve in second half of 2021 and into 2022  Long-term agreement (LTA) sales volume

  6. Slide 6: Production and Sales

    Production and Sales  Production up 33% and Sales Volume up 39% vs. Q2 2020  Focused on accelerating production with improving demand Production (000 MT) Sales Volumes (000 MT) Net Sales ($ Million) +39% +18% +33% 44 43 $338 $331 $287 $304 36 36 37 37 $281 33 32 33 31 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21

  7. Slide 7: ESG Progress

    ESG Progress Focused Materiality & Sustainability Strategy  Conducted robust Materiality Assessment in first half of 2021  Multiple internal and external stakeholders participated Q2 Community Spotlight  ESG topics material to our business identified and scored; Executive team validated Material

  8. Slide 8: Earnings and Cash Flow

    Earnings and Cash Flow  Continuing to deliver solid results in Q2 2021  EPS of $0.11, net income of $28 million and net income margin of 9%  Adjusted EPS1 of $0.43, adjusted EBITDA1 of $160 million and adjusted EBITDA margin2 of 48%  Operating cash flow of $86 million, free cash flow3 of $74 mil

  9. Slide 9: Balance Sheet Strength and Financial Flexibility

    Balance Sheet Strength and Financial Flexibility Strengthening Capital Structure  Reduced debt by $50 million in Q2, $200 million Q2 YTD; continuing to decrease amount maturing in 2025  Total Debt / Adjusted EBITDA1 1.9x  Liquidity of $360 million Liquidity ($ Million) Debt Maturity Profile ($ Mi

  10. Slide 10: Delivering on Key Capital Priorities

    Delivering on Key Capital Priorities Generate Meaningful Cash Flows  Delivering strong cash flow in 2021  Operating cash flow of $861 million and adjusted free cash flow2 of $136 million  Converted 85% percent of adjusted EBITDA3 to adjusted free cash flow2, 4 Strong Balance Sheet for Operational

  11. Slide 11: An Industry-Leading Producer of Graphite Electrodes

    An Industry-Leading Producer of Graphite Electrodes  Graphite electrodes are a highly engineered, mission critical industrial consumable for electric arc furnace steel production, that constitute less than 5% of customer COGS  EAF steelmaking long-term growth rate of ~3%(1), low capital and cost s

  12. Slide 12: Disclosures

    | Disclosures MU“ GRAF) ec International

  13. Slide 13: 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 page 2 and the factors described under the “Risk Factors” section of the Company’s most recent Annu

  14. Slide 14: Reconciliation to Adjusted Net Income

    Reconciliation to Adjusted Net Income For the Three Months Ended June 30, Sept 30, Dec 31, March 31, June 30, ($ in thousands) 2020 2020 2020 2021 2021 Net income $ 92,776 $ 94,234 $ 125,096 $ 98,799 $ 28,165 Adjustments (pre-tax): Pension and OPEB plan expenses (1) 541 583 4,430 431 430 Initial and

  15. Slide 15: Reconciliation to Adjusted EPS

    Reconciliation to Adjusted EPS For the Three Months Ended June 30, Sept 30, Dec 31, March 31, June 30, 2020 2020 2020 2021 2021 Earnings per share $ 0.35 $ 0.35 $ 0.47 $ 0.37 $ 0.11 Adjustments per share: Pension and OPEB plan expenses (1) - - 0.02 - - Initial and follow-on public offering and relat

  16. Slide 16: Reconciliation to Adjusted EBITDA

    Reconciliation to Adjusted EBITDA For the Three Months Ended TTM Ended June 30, Sept 30, Dec 31, March 31, June 30, June 30, ($ in thousands) 2020 2020 2020 2021 2021 2021 Net income $ 92,776 $ 94,234 $ 125,096 $ 98,799 $ 28,165 $ 346,294 Add: Depreciation and amortization 14,549 16,241 17,889 16,53

  17. Slide 17: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow

    Reconciliation to Free Cash Flow and Adjusted Free Cash Flow For the Three Months Ended June 30, Sept 30, Dec 31, March 31, June 30, ($ in thousands) 2020 2020 2020 2021 2021 Net cash provided by operating activities $ 148,373 $ 129,009 $ 146,981 $ 122,425 $ 86,330 Capital expenditures (10,454) (6,3

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