Graftech International Ltd. · NYSE:EAF

Graftech International — Q3 2018 Earnings Presentation

15 slides from Graftech International's earnings presentation, Nov 2, 2018

  1. Slide 1: 3Q 2018 Financial Results

    3Q 2018 Financial Results November 2, 2018

  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 Near All Time Lows 2.00 1.75 1.50 1.39 1.25 1.00 2013 2014 2015 2016 2017 2018YTD* 1 Total recordable injury rates measured per 200,000 hours worked * 2018 YTD as of September 30, 2018 Hands-off Initiative: No Touch Tools 2

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

    Delivering Solid Quarterly Results; Progressing Long-term Strategy  Global steel demand (ex-China) expected to grow 2.1% in 2018 and Strong end-market 2.7% in 20191 demand  3Q revenues +231% versus prior year; higher pricing and volumes Constrained graphite  Graphite electrode market structurally

  5. Slide 5: 3Q 2018 Operational Updates

    3Q 2018 Operational Updates  Debottlenecking initiative on track to increase production capacity by 21% to 202,000 MT1 by 2018YE ‒ Calais: Installation of furnaces and a multipurpose crane completed in Q3 ‒ Pamplona: Forming press start-up on track for late 2018  Seadrift planned maintenance outag

  6. Slide 6: Higher Net Sales Driven by Strong Graphite Electrode Demand

    Higher Net Sales Driven by Strong Graphite Electrode Demand  YTD 2018* net sales +280% from prior year due to higher sales volumes and pricing ‒ YTD 2018* sales volumes +3% from prior year ‒ YTD 2018* weighted average realized price +290% from prior year ‒ Weighted average realized price -2% from 2

  7. Slide 7: Delivering Value Through Strategic Execution

    Delivering Value Through Strategic Execution  Financial results benefit from increased sales volumes and weighted average realized price  Cost of sales impacted by higher third party raw materials costs  3Q 2018 EPS of $0.67 inline with 2Q 2018  Free cash flow of over $200M for the second consec

  8. Slide 8: GrafTech Delivers $277M 3Q 2018 Adjusted EBITDA from Continuing Operations

    GrafTech Delivers $277M 3Q 2018 Adjusted EBITDA from Continuing Operations $25 $3 $33 $16 $277 $199 Net Income D&A Net interest Income taxes Net Adj. EBITDA adjustments* from Cont'g Operations *Includes Pension and OPEB plan expenses, Initial public offering expenses, Non-cash loss on foreign curren

  9. Slide 9: Committed to a Responsible and Shareholder Friendly Financial Policy

    Committed to a Responsible and Shareholder Friendly Financial Policy Strong liquidity and cash flows  As of 9/30/18, total liquidity was approximately $346M1 including $103M in cash and equivalents  Year-to-date free cash flow2 of $565M Manage the business in a responsible manner  Focus on operat

  10. Slide 10: Key Investment Highlights

    Key Investment Highlights 1 Mission critical, highly engineered consumable for the high growth EAF market 2 Market leading high capacity plants and vertical integration drive low cost production 3 Unique long-term contracts provide profitability and visibility 4 Expanding production capacity to targ

  11. Slide 11: Appendix

    Appendix GraF lec!)

  12. Slide 12: 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 quarterly repor

  13. Slide 13: Reconciliation to Adjusted EBITDA from Continuing Operations

    Reconciliation to Adjusted EBITDA from Continuing Operations For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Net income (loss) 199,466 (3,919) 624,587 (47,646) Add: Discontinued operations 726 (3,234) (585) 4,882 Depreciation and am

  14. Slide 14: Reconciliation to Free Cash Flow

    Reconciliation to Free Cash Flow For the Three Months Ended For the Nine Months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Net cash provided by operating activities 234,569 30,106 612,244 33,581 Capital expenditures (18,897) (9,582) (47,632) (23,028) Free cash flow 215,672

  15. Slide 15: GrafTech International

    GRAF /ecii International

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