Graftech International Ltd. · NYSE:EAF
Graftech International — FY2018 Earnings Presentation
17 slides from Graftech International's earnings presentation, Feb 8, 2019
Slide 1: FY & Q4/18 Results (Unaudited)
FY & Q4/18 Results (Unaudited) February 8, 2019
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
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 1.25 1.00 2013 2014 2015 2016 2017 2018 1 Total recordable injury rates measured per 200,000 hours worked Hands-off Initiative: No Touch Tools 2
Slide 4: Solid Quarterly Results; Progressing Long-term Strategy
Solid Quarterly Results; Progressing Long-term Strategy Market fundamentals remain solid • Q4 weighted average realized price of $9,950 per MT, up 2% from Q3/18 on higher spot volumes • Graphite electrode market is more balanced with recent spot pricing moving off historic highs • Steel production
Slide 5: Higher Net Sales Driven by Strong Graphite Electrode Demand
Higher Net Sales Driven by Strong Graphite Electrode Demand 2018 net sales +244% from prior year due to higher sales volumes and pricing ‒ 4Q 2018 sales volumes +22% from prior year ‒ 4Q 2018 weighted average realized price +141% from the prior year quarter ‒ 4Q 2018 weighted average realized pric
Slide 6: 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 continue to be impacted by higher third party raw materials costs 4Q 2018 EPS of $0.79 up 18% from 3Q 2018 4Q 2018 Adjusted EBITDA from contin
Slide 7: GrafTech Delivers $1.2B FY 2018 Adjusted EBITDA from Continuing Operations
GrafTech Delivers $1.2B FY 2018 Adjusted EBITDA from Continuing Operations $135 $16 $133 $66 $1,205 $854 Net Income D&A Net interest TRA & Income Net Adj. EBITDA taxes adjustments* from Cont'g Operations GrafTech reported record Net Income of $854 million and Adjusted EBITDA from Continuing Operat
Slide 8: 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 12/31/18, total liquidity was approximately $295M1 including $50M in cash and equivalents Full year 2018 free cash flow2 of $768M Manage the business in a responsible manner Focus on oper
Slide 9: Committed to a Responsible and Shareholder Friendly Financial Policy
Committed to a Responsible and Shareholder Friendly Financial Policy Capital Allocation in 2018 Since IPO1 7% of free cash flow retained Debt repayment 56 9% of free cash flow to pay debt Quarterly dividends 69 595 Share repurchases 225 84% of free cash flow returned to shareholders Special dividend
Slide 10: Our Commercial Strategy
Our Commercial Strategy In aggregate, GrafTech has added 40,000 MT of sales under long-term agreements for 2019-2023 at pricing above existing agreements 2019 sales include take-or-pay contracts, short-term contracts and spot sales Evolving Commercial Strategy Take-or-Pay Agreements $10,100 $9,8
Slide 11: Graphite Electrode Demand is Supported by Strong Steel Industry Trends
Graphite Electrode Demand is Supported by Strong Steel Industry Trends 1 Global Industrial Production Index Level – 2010=100 118 125 Solid demand from steel consuming industries YTD 20171 YTD 20181 2 Steel Production Growth (ex-China)2 Steel production growth in our key 2.7% 2.4% 2.1% 4% markets rem
Slide 12: 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 Expanded production capacity to targe
Slide 13: Appendix
Appendix GraF lec!)
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 quarterly repor
Slide 15: Reconciliation to Adjusted EBITDA from Continuing Operations
Reconciliation to Adjusted EBITDA from Continuing Operations For the Three Months Ended For the Three Months Ended For the Year Ended September 30, December 31, December 31, (in thousands) 2018 2018 2017 2018 2017 Net income (loss) 199,466 229,632 55,628 854,219 7,983 Add: Discontinued operations 72
Slide 16: Reconciliation to Free Cash Flow
Reconciliation to Free Cash Flow For the Three Months Ended For the Year Ended December 31, December 31, (in thousands) 2018 2017 2018 2017 Net cash provided by operating activities 224,359 2,993 836,603 36,573 Capital expenditures (20,589) (11,637) (68,221) (34,664) Free cash flow 203,770 (8,644) 7
Slide 17: GRAF /ecii
GRAF /ecii International
GrafTech International — FY2018 Earnings Presentation on 6ix