Sgl Carbon Se · XETR:SGL
Sgl Carbon — Sgl Group Ord — Q3 2023 Earnings Presentation
21 slides from Sgl Carbon's earnings presentation, Nov 24, 2023
Slide 1: 9M 2023 Results
9M 2023 Results Dr. Torsten Derr (CEO) Thomas Dippold (CFO) Wiesbaden I November 2, 2023
Slide 2: Agenda
Agenda 1. Highlights 2. 9M 2023 Results 3. Deep dive GS/SiC 4. Summary 2
Slide 3: 9M 2023: Still solid Group numbers – despite weakness in CF
9M 2023: Still solid Group numbers – despite weakness in CF Financials Business Outlook 821.7 mEUR Increasing demand After 3 quarters in 2023: Group sales 3.8% down Equity Ratio Strong confirmation of sales from semiconductor – driven by decline in at 42.5% business and EBITDApre forecast industry -
Slide 4: 9M 2023 in line with expectations on Group level
2 9M 2023 Results “9M 2023 in line with expectations on Group level” 4
Slide 5: Trend in sales and EBITDApre confirm 2023 as stabilization year
Trend in sales and EBITDApre confirm 2023 as stabilization year Sales (in mEUR) Key developments - 3.8% • Sales development: GS (+35.9 mEUR), PT (+18.7 mEUR) 821.7 853.9 CS (+3.3 mEUR) and CF (-89.4 mEUR) • Profitability deterioration in CF almost compensated by favorable product mix and volume chan
Slide 6: Graphite Solutions (GS) – SiC sales drive profitability
Graphite Solutions (GS) – SiC sales drive profitability Sales (in mEUR) Key developments +9.4% Sales 418.4 382.5 • Strong rise in semiconductor sales yoy (+38.5%) • Full capacity utilization for graphite components for semiconductor industry • Automotive and Industrial Applications stable 9M 2023 9M
Slide 7: Process Technology (PT) – Margin development above sales growth
Process Technology (PT) – Margin development above sales growth Sales (in mEUR) Key developments +24.3% Sales 95.7 • Last year’s order intake leads to strong sales increase 77.0 • Order book 9M 2023 remains on high level • Growth in all three regions (Europe, Asia, America) 9M 2023 9M 2022 EBITDApre
Slide 8: Carbon Fibers (CF) – Wind industry demand remains insufficient
Carbon Fibers (CF) – Wind industry demand remains insufficient Sales (in mEUR) Key developments -33.2% Sales 269.0 • Scheduled expiry of i3 supply contract in June 2022 179.6 affects yoy comparison • Demand from wind energy customers remains very low, other market segments also unsatisfactory • High
Slide 9: Composite Solutions (CS) – positive business development continues
Composite Solutions (CS) – positive business development continues Sales (in mEUR) Key developments +3.0% Sales 114.3 111.0 • Strong demand from automotive customers (large- and small-scale solutions) • Negative effect from sale of Gardena business (USA site) in February 2023 already compensated 9M
Slide 10: Corporate – One-time effects impact sales and earnings
Corporate – One-time effects impact sales and earnings Sales (in mEUR) Key developments -0.7 mEUR Sales 13.7 14.4 • Sale of Gardena (USA) and Pune (India) site allocated to Corporate until divestment on February 16 and April 28, 2023 • Previous year affected by one-time effects of 6.6 mEUR 9M 2023 9
Slide 11: CF impairment burdens net result
CF impairment burdens net result Key figures (in mEUR) Key developments Net result decreased to 5.3 mEUR Net result Equity ratio (in %) Net financial debt 9M 2023 due to impairment loss of 44.7 mEUR in CF and lower one-offs 42.5 70.6 166.6 170.8 Capex of 59.1 mEUR mainly used to 38.5 increase produc
Slide 12: Portfolio shift to semiconductor pays off
3 Deep dive GS/SiC “Portfolio shift to semiconductor pays off” 12
Slide 13: SGL semiconductor sales development exceeds market trend
SGL semiconductor sales development exceeds market trend GS market segment semiconductor & LED over time Drivers of portfolio shift in Mio. € 80 50% • 34% SiC market growth (CAGR 2021-2027 Yole SGL CAGR ~42% (9M comparison) 60 40% Research) 30% 40 20% • 42% SGL’s Semiconductor & LED sales growth 20
Slide 14: Joint financing to increase production capacities
Joint financing to increase production capacities Win-win situation for SGL and our customers (illustrative) 2022 2023 2024 2025 2026 1st Investment phase (joint financing) • Customer down-payments • Interest free, cash friendly • Establish and strengthen strategic partnerships Increase production c
Slide 15: Capex 59.1 mEUR mainly used to increase production capacity in GS
Capex 59.1 mEUR mainly used to increase production capacity in GS (9M 2022: 31.8 mEUR) New investments in the high double-digit million range ensure expanded capacities Bonn / DE Expansion of machining and purification capacity Investment projects started in 2023 St. Marys / US Expansion of machinin
Slide 16: Summary
4 Summary “Expected strong GS, extraordinarily positive development in PT & CS, downturn in CF” 16
Slide 17: Summary: Guidance confirmed - 3 of 4 Business Units at all time high
Summary: Guidance confirmed - 3 of 4 Business Units at all time high Graphite Solutions Process Technology Carbon Fibers Composite Solutions Performance Situation & Market ▪ Growth in Silicon Carbide ▪ Systems as well as parts ▪ Wind energy crisis = low ▪ Good utilization (SiC) intact and increasing
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: Financial calendar and IR contact details
Financial calendar and IR contact details Financial calendar Contact March 22, 2024 Investor Relations • Publication of the Annual Report 2023 SGL Carbon SE • Conference call for investors and analysts Söhnleinstrasse 8 65201 Wiesbaden/Germany May 8, 2024 • Statement on the First Quarter 2024 Phone:
Slide 21: 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