Graftech International Ltd. · NYSE:EAF

Graftech International — Q4 2020 Earnings Presentation

16 slides from Graftech International's earnings presentation, Feb 5, 2021

  1. Slide 1: Q4 and Full Year 2020 Unaudited Results

    Q4 and Full Year 2020 Unaudited Results February 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 - 46% 0.51 2015 2016 2017 2018 2019 2020 1 Total recordable injury rates measured per 200,000 hours worked. 3

  4. Slide 4: 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  Senior management-led Steering Group oversees our sustainability strategy which is guided

  5. Slide 5: Industry Conditions

    Industry Conditions Steel Industry Fundamentals improved in Q4  Global steel production, excluding China1, of ~211 million tons in Q4; up 11% sequentially vs. Q3  Global steel manufacturing utilization rates (ex-China) improved to over 72% in Q42, from just over 60% in Q3  Steel prices continue t

  6. Slide 6: Commercial Outlook

    Commercial Outlook  Market conditions were challenging in 2020, but conditions began improving late in the year.  Developed mutually beneficial solutions with customers facing these challenges, including volume commitments.  Our long term agreement (LTA) sales volume and revenues estimates for 20

  7. Slide 7: Production and Sales

    Production and Sales  Production, Sales Volume and Net Sales up sequentially  Aligning production levels with sales volumes Production (000 MT) Sales Volumes (000 MT) Net Sales ($ Million) 41 +12% 41 +13% $415 37 +18% 36 34 33 33 33 $338 32 31 $319 $281 $287 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q4/19 Q1/

  8. Slide 8: Earnings and Cash Flow

    Earnings and Cash Flow  Continuing to deliver solid results:  2020 Full Year EPS of $1.62  2020 Adjusted EBITDA1 of $659 million  2020 Adjusted EBITDA margin2 of 54%  80% of Adjusted EBITDA1 converted to Free Cash Flow3 in 2020 Earnings Per Share Adjusted EBITDA ($ Million)1 Free Cash Flow ($ M

  9. Slide 9: 2020 Capital Allocation

    2020 Capital Allocation 2020 Free Cash Flow1 Generation – Significant Debt Reduction ($ Million) $65 $142 $123 $528 $400 $138 $125 $61 Q1/20 Q2/20 Q3/20 Q4/20 FY 2020 Capital Allocation Free Cash Flow1 Debt Reduction Dividends and Share Repurchases2 Increase in Cash 1 Non-GAAP measure, see page 16 f

  10. Slide 10: Prioritizing Balance Sheet Strength and Financial Flexibility

    Prioritizing Balance Sheet Strength and Financial Flexibility Significantly Strengthened Capital Structure in 2020  Reduced debt by ~$400 million  Improved Debt Maturity Profile  Issued $500 million in 4.625% senior secured notes due December 2028  Repaid $500 million in secured term loans due F

  11. Slide 11: Key Capital Priorities

    Key Capital Priorities Generate meaningful cash flows  Anticipate strong operating cash flow in 2021  Expect to convert a high percentage of adjusted EBITDA to free cash flow  2020 free cash flow1 of $528 million Continued focus on balance sheet strength to allow for operational and strategic fle

  12. Slide 12: GrafTech – An Industry Leading Producer of Graphite Electrodes

    GrafTech – 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 an

  13. Slide 13: Disclosures

    Disclosures GRAF! cl) 13 Internatio

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

  15. Slide 15: Reconciliation to Adjusted EBITDA

    Reconciliation to Adjusted EBITDA For the Three Months Ended For the Year Ended Dec 31, March 31, June 30, Sept 30, Dec 31, December 31, (in thousands) 2019 2020 2020 2020 2020 2020 Net income $ 174,922 122,268 $ 92,776 $ 94,234 $ 125,096 $ 434,374 Add: Depreciation and amortization 15,432 14,284 14

  16. Slide 16: Reconciliation to Free Cash Flow

    Reconciliation to Free Cash Flow For the Three Months Ended For the Year Ended Dec 31, March 31, June 30, Sept 30, Dec 31, December 31, (in thousands) 2019 2020 2020 2020 2020 2020 Net cash provided by operating activities $ 220,544 $ 139,283 $ 148,373 $ 129,009 $ 146,981 $ 563,646 Capital expenditu

GrafTech International — Q4 2020 Earnings Presentation on 6ix