Sgl Carbon Se · XETR:SGL
Sgl Carbon — Sgl Group Ord — H1 2023 Earnings Presentation
21 slides from Sgl Carbon's earnings presentation, Aug 3, 2023
Slide 1: H1 2023 Results
H1 2023 Results Dr. Torsten Derr (CEO) Thomas Dippold (CFO) Wiesbaden I August 3, 2023
Slide 2: Agenda
Agenda 1. Highlights 2. H1 2023 Results 3. Deep dive CF 4. Summary 2
Slide 3: H1 2023: Solid Group numbers
H1 2023: Solid Group numbers Financials Business Outlook 560.5 mEUR Equity Ratio Increasing demand Strong After six months in 2023: Group sales 1.9% up – from semiconductor confirmation of sales at 36.1% business driven by rising demand industry - especially and earnings forecast at (31.12.2022: dev
Slide 4: H1 2023 in line with expectations
2 H1 2023 Results “H1 2023 in line with expectations” 4
Slide 5: Stable sales and EBITDApre confirm 2023 as stabilization year
Stable sales and EBITDApre confirm 2023 as stabilization year Sales (in mEUR) Key developments +1.9% • Sales development: GS (+37.2 mEUR), PT (+15.2 mEUR) CS (+10.0 mEUR) and CF (-50.9 mEUR) 560.5 549.8 • Improvement in profitability due to product mix changes in GS as well as positive developments
Slide 6: Graphite Solutions (GS) – growth expectations on track
Graphite Solutions (GS) – growth expectations on track Sales (in mEUR) Key developments +15.3% Sales 280.6 243.4 • Strong rise in semiconductor sales yoy (+51%) • Full capacity utilization for graphite components for semiconductor industry • Automotive also increasing; Solar & Chemicals down H1 2023
Slide 7: Process Technology (PT) – large projects support growth
Process Technology (PT) – large projects support growth Sales (in mEUR) Key developments +30.9% Sales 64.4 • Last year’s order intake leads to strong sales increase 49.2 • Order intake H1 2023 remains on high level • Growth in all three regions (Europe, Asia, America) H1 2023 H1 2022 EBITDApre (in m
Slide 8: Carbon Fibers (CF) – negative impact from downturn in wind industry
Carbon Fibers (CF) – negative impact from downturn in wind industry Sales (in mEUR) Key developments -28.9% Sales 176.0 • Scheduled expiry of i3 supply contract in June 2022 125.1 affects half-year comparison • Temporary downturn in demand from wind energy customers H1 2023 H1 2022 EBITDApre (in mEU
Slide 9: Composite Solutions (CS) – positive business development continues
Composite Solutions (CS) – positive business development continues Sales (in mEUR) Key developments +14.4% Sales 79.6 • Strong demand from automotive customers (large- and 69.6 small-scale solutions) • Negative effect from sale of Gardena business (USA site) in February 2023 already compensated H1 2
Slide 10: Corporate – One-time effects impact sales and earnings
Corporate – One-time effects impact sales and earnings Sales (in mEUR) Key developments -0.8 mEUR Sales 10.8 11.6 • Sale of Gardena (USA) and Pune (India) site allocated to Corporate until divestment on February 16 and April 28, 2023 H1 2023 H1 2022 EBITDApre (in mEUR) EBITDApre +0.7 mEUR • Results
Slide 11: CF Impairment burdens net result
CF Impairment burdens net result Key figures (in mEUR) Key developments Net result decreased to -10.0 mEUR: Net result Equity ratio (in %) Net financial debt H1 2023 negatively affected by impairment of -44.7 mEUR in CF 38.5 36.1 169.9 170.8 Net financial debt decreased slightly by 0.5% compared to
Slide 12: Deep dive CF: The future of Carbon Fibers
3 Deep dive CF “The future of Carbon Fibers” 12
Slide 13: SGL Carbon to transform its Carbon Fiber business
SGL Carbon to transform its Carbon Fiber business Transformation steps Until 2022 (BMW i3) 2023 (Wind Crisis) After 2024 • SGL carbon fiber focused on BMW i3 • Wind energy in 10 years low • SGL expects recovery of (take-or-pay, high margin) in 2023 wind market in 2024 • BMW i3 discontinued in 07/202
Slide 14: The wind market's paradox - Carbon Fiber market forecasted to grow
The wind market’s paradox - Carbon Fiber market forecasted to grow, but market participants currently with low profitability Wind carbon fiber market (in ktons) Drivers wind recovery 150 • Growth in wind energy turbines Wood Mac1 - offshore +18% CAGR - onshore +2.4% CAGR 100 McKinsey • Larger blades
Slide 15: New higher margin Carbon Fiber application – stepwise migration
New higher margin Carbon Fiber application – stepwise migration New carbon fiber markets H2 Pressure Vessels Construction Aerospace Concrete Rebars ▪ Mid-term ▪ Mid-term ▪ Long-term ▪ Long-term ▪ Volume: medium ▪ Volume: small ▪ Volume: medium ▪ Volume: medium ▪ Launched Q2/2023, ▪ Concrete refurbis
Slide 16: Summary
4 Summary “Expected strong GS, extraordinarily positive development in PT & CS, temporary downturn in CF” 16
Slide 17: H1 2023 operationally on track at Group level
H1 2023 operationally on track at Group level Summary H1 2023 Financials on track Operating Business Markets Stable sales EBITDApre High capacity utilization in GS, Continuing high demand growth stable PT and CS from SiC customers +1.9% +0.1% Product mix and volume Solid call-offs from the effects l
Slide 18: Q&A
Q&A We are looking forward to your questions © Copyright SGL Carbon SE ® Registered trademarks of SGL Carbon SE
Slide 19: SGL Carbon to report EBIT / EBITDApre (exceptionals)
SGL Carbon to report EBIT / EBITDApre (exceptionals) Definition of exceptionals (for 2023) • Depreciation in accordance with IFRS: ‒ effects of impairment (IAS 36) ‒ purchase price allocations (IFRS 3) ‒ effects on assets held for sale in accordance with IFRS 5 • Restructuring expenses • Proceeds fr
Slide 20: Important Note
Important Note This presentation contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to SGL Carbon’s outlook and business development, including developments in SGL Carbon’s Graphite Solutions (GS), Process Technology (P
Slide 21: Financial calendar and IR contact details
Financial calendar and IR contact details Financial calendar Contact Investor Relations November 2, 2023 SGL Carbon SE • Quarterly statement as of September 30, 2023 Söhnleinstrasse 8 • Conference call for analysts and investors 65201 Wiesbaden/Germany Phone: +49 611 6029-103 E-mail: Investor-Relati