Slide 1: Q3 2024 Results
NYSE: EAF www.graftech.com Q3 2024 Results November 12, 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: Today's Presenters
Today’s Presenters Tim Flanagan Jeremy Halford Rory O’Donnell Chief Executive Officer Executive Vice President, Chief Financial Officer and President Chief Operating Officer and Senior Vice President 3
Slide 4: Successfully Executing Initiatives to Manage Current Environment and Preserve Long-term Flexibility
Successfully Executing Initiatives to Manage Current Environment and Preserve Long-term Flexibility 1 Investing in customer engagement and our customer value proposition 2 Executing our cost reduction and cash management initiatives 3 Capitalizing on opportunity to improve liquidity position and str
Slide 5: Prioritizing Safety
Prioritizing Safety Total Recordable Incident Rate (“TRIR”)(1) 0.95 0.94 0.61 0.51 0.49 0.44 2019 2020 2021 2022 2023 Q3 YTD 2024 (1) TRIR measured per 200,000 hours worked. 5
Slide 6: Steel Industry Trends
Steel Industry Trends ▪ Steel industry production remains constrained by global economic uncertainty (1) ▪ Q3 2024 global steel production, excluding China, of 202 million tons versus 206 million tons in Q3 2023 Steel Capacity Utilization Rates(2) 77% 77% 76% 76% 73% 69% 68% 68% 67% 65% Q3 2023 Q4 2
Slide 7: Production and Sales
Production and Sales ▪ Q3 2024 production volume down 15%, sales volume up 9% and net sales down 18% compared to Q3 2023 o Production volume decline primarily reflects extended production shutdowns at our European manufacturing facilities, as was planned (1) o Net sales decline primarily reflects lo
Slide 8: Earnings and Cash Flow
Earnings and Cash Flow (1) (2) ▪ Q3 2024 net loss of $36 million, or $0.14 per share , and adjusted EBITDA of negative $6 million (2) ▪ Q3 2024 net cash provided by operating activities of $24 million and adjusted free cash flow of $20 million (2) ▪ Significant cost improvement, as Q3 2024 cash cost
Slide 9: Agreement for New Capital to Bolster Liquidity
(1) Agreement for New Capital to Bolster Liquidity $175 million of new senior first lien term loans, funded at transaction closing, with an additional $100 million available 1 on a delayed draw basis 2 Term loan will bear interest at SOFR plus 600 basis points and will mature in December 2029 3 Exch
Slide 10: Liquidity and Debt Maturity Profile
Liquidity and Debt Maturity Profile (1) ▪ Liquidity of $254 million as of September 30, 2024 would increase to $529 million, on an as adjusted basis , reflecting the announced agreement for new capital (1) ▪ No maturities of funded debt until December 2029, on an as adjusted basis , reflecting the a
Slide 11: EAF Capacity Utilization Rates Expected to Recover After Recent Downward Shock
EAF Capacity Utilization Rates Expected to Recover After Recent Downward Shock EAF Steel Capacity Utilization Over Time (ex. China) (1) 100% Global Financial 600 Crisis 95% Ukraine War and COVID-19 Inflation Surge 500 90% 85% 400 EAF Production, million MT 79% 80% EAF Utilization, % 76% 75% 300 67%
Slide 12: Decarbonization Efforts Driving Long-Term EAF Growth
Decarbonization Efforts Driving Long-Term EAF Growth ▪ Reflecting environmental benefits, growth in EAF steelmaking expected to continue to outpace overall steel production ▪ Industry announcements of incremental EAF capacity additions represent a significant tailwind for graphite electrode demand I
Slide 13: EV Market is Expected to Accelerate Demand for Needle Coke
EV Market is Expected to Accelerate Demand for Needle Coke Needle Coke Demand Forecast(1) Needle Coke Supply vs. Demand by Application(1) ▪ High quality needle coke demand is driven by two 4.5 Large Supply-Demand Imbalance megatrends: Supply Base Case Needle Coke Demand Forecast Battery Demand o Dem
Slide 14: 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 15: Appendix
Appendix 15
Slide 16: 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 17: Reconciliation to Adjusted Net Loss
Reconciliation to Adjusted Net Loss Three Months Ended Sept 30, June 30, Mar 31, Dec 31, Sept 30, ($ in thousands) 2024 2024 2024 2023 2023 Net loss $ (36,068) $ (14,752) $ (30,869) $ (217,409) $ (22,621) Adjustments, pre-tax: Pension and OPEB plan expenses(1) 479 477 347 3,578 914 Rationalization e
Slide 18: Reconciliation to Adjusted Loss Per Share
Reconciliation to Adjusted Loss Per Share Three Months Ended Sept 30, June 30, Mar 31, Dec 31, Sept 30, 2024 2024 2024 2023 2023 Loss per share $ (0.14) $ (0.06) $ (0.12) $ (0.85) $ (0.09) Adjustments per share, pre-tax: Pension and OPEB plan expenses(1) - - - 0.01 - Rationalization expenses(2) - -
Slide 19: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA Three Months Ended Sept 30, June 30, Mar 31, Dec 31, Sept 30, ($ in thousands) 2024 2024 2024 2023 2023 Net loss $ (36,068) $ (14,752) $ (30,869) $ (217,409) $ (22,621) Add: Depreciation and amortization 17,933 14,319 13,883 13,836 16,954 Interest expense 16,503 15,
Slide 20: Reconciliation to Free Cash Flow and Adjusted Free Cash Flow
Reconciliation to Free Cash Flow and Adjusted Free Cash Flow Three Months Ended Sept 30, June 30, Mar 31, Dec 31, Sept 30, ($ in thousands) 2024 2024 2024 2023 2023 Net cash provided by (used in) operating activities $ 23,709 $ (36,855) $ (530) $ 9,292 $ 51,495 Capital expenditures (4,027) (6,979) (
Slide 21: Reconciliation to Cash Cost of Goods Sold per MT
Reconciliation to Cash Cost of Goods Sold per MT Three Months Ended Year Ended Sept 30, June 30, Mar 31, Dec 31, Sept 30, Dec 31, ($ in thousands, except per MT amounts) 2024 2024 2024 2023 2023 2023 Cost of goods sold $ 134,885 $ 131,970 $ 135,204 $ 144,393 $ 157,603 $ 571,857 Less: Depreciation an
Slide 22: Ticker: EAF (NYSE) GrafTech International Ltd.
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