Graftech International Ltd. · NYSE:EAF

Graftech International — Q1 2021 Earnings Presentation

15 slides from Graftech International's earnings presentation, May 5, 2021

  1. Slide 1: Q1 2021 Results

    Q1 2021 Results May 5, 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: Building Safe and Efficient Operations

    Building Safe and Efficient Operations Total Recordable Injury Rates1 1.74 1.63 1.55 1.49 0.95 0.58 0.51 2015 2016 2017 2018 2019 2020 Q1 2021 1 Total recordable injury rates measured per 200,000 hours worked. 3

  4. Slide 4: Industry Conditions

    Industry Conditions Steel Industry Fundamentals continued improving in Q1  Global steel production, excluding China1, of ~216 million tons in Q1; up 3% sequentially vs. Q4  Global steel manufacturing utilization rate (ex-China) improved to ~73% in Q12, from ~72% in Q4  Steel prices continue to in

  5. Slide 5: Commercial Outlook

    Commercial Outlook  Market conditions have continued to improve in 2021  Seeing improved demand for our products  Expect volumes to increase through balance of year  Expect improved pricing in second half of 2021  Unchanged long term agreement (LTA) sales volume and revenues estimates for 2021

  6. Slide 6: Production and Sales

    Production and Sales  Production and Sales Volume both up 9% vs. Q1 2020  Focused on increasing production with improving demand  Prioritizing customer satisfaction with 95% on time delivery performance in the first quarter Production (000 MT) Sales Volumes (000 MT) Net Sales ($ Million) 37 37 $3

  7. Slide 7: Prioritizing ESG

    Prioritizing ESG Business Ethics & Corporate Governance  Our Code of Conduct and Ethics guides our daily business decisions and actions  “Do the right thing every time” Materiality & Sustainability Strategy  Currently conducting Materiality Assessment Workforce  Safety is a top priority, with em

  8. Slide 8: Earnings and Cash Flow

    Earnings and Cash Flow  Continuing to deliver solid results:  Q1 2021 EPS of $0.37  Q1 2021 adjusted EBITDA1 of $155 million  Q1 2021 adjusted EBITDA margin2 of 51%  70% of adjusted EBITDA1 converted to free cash flow3 in Q1 2021 Earnings Per Share Adjusted EBITDA ($ Million)1 Free Cash Flow ($

  9. Slide 9: Prioritizing Balance Sheet Strength and Financial Flexibility

    Prioritizing Balance Sheet Strength and Financial Flexibility Continued to Strengthen Capital Structure in Q1 2021  Reduced debt by ~$150 million, continuing to decrease amount maturing in 2025  Lowered Term Loan interest rate by 100 basis points from Credit Agreement repricing and improved credit

  10. Slide 10: Delivering on Key Capital Priorities

    Delivering on Key Capital Priorities Generate meaningful cash flows  Anticipate strong operating and free cash flow in 2021  Q1 operating cash flow of $122 million and free cash flow1 of $108 million  Converted 70% percent of adjusted EBITDA2 to free cash flow3 Continuing focus on balance sheet s

  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 only 1-5% of customer COGS  EAF steelmaking long-term growth rate of ~3%(1), low capital and cost stru

  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 EBITDA

    Reconciliation to Adjusted EBITDA For the Three Months Ended TTM Ended March 31, June 30, Sept 30, Dec 31, March 31, March 31, (in thousands) 2020 2020 2020 2020 2021 2021 Net income 122,268 $ 92,776 $ 94,234 $ 125,096 $ 98,799 $ 410,905 Add: Depreciation and amortization 14,284 14,549 16,241 17,889

  15. Slide 15: Reconciliation to Free Cash Flow

    Reconciliation to Free Cash Flow For the Three Months Ended March 31, June 30, Sept 30, Dec 31, March 31, (in thousands) 2020 2020 2020 2020 2021 Net cash provided by operating activities $ 139,283 $ 148,373 $ 129,009 $ 146,981 $ 122,425 Capital expenditures (13,901) (10,454) (6,333) (5,387) (14,174

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