Graftech International Ltd. · NYSE:EAF

Graftech International — Q3 2020 Earnings Presentation

15 slides from Graftech International's earnings presentation, Nov 3, 2020

  1. Slide 1: Q3 2020 Results

    Q3 2020 Results November 3, 2020 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 - 40% 0.57 2015 2016 2017 2018 2019 Q3 YTD 2020 1 Total recordable injury rates measured per 200,000 hours worked. 3

  4. Slide 4: Proactive Focus on COVID-19

    Proactive Focus on COVID-19 Taking Actions to Keep Employees Safe  Senior Executive COVID-19 Response Team meets three times per week  Use of “check-sheets” to ensure highest priority and focus on safe COVID-19 practices Employing “Safe-work Playbook”  Comprehensive document outlining exact proto

  5. Slide 5: First Annual Sustainability Report

    First Annual Sustainability Report Launched Inaugural Sustainability Report in September  Advancing our ESG efforts  Tracking and monitoring our ESG data  Producing report annually  Available at www.GrafTech.com EAF Steelmaking Advantages  75% less carbon emissions  Among the world’s largest r

  6. Slide 6: Industry Conditions

    Industry Conditions  Q3 saw steel industry demand trends improving  Global steel production at ~187 million tons in Q3, excluding China1; up 12% sequentially vs. Q2  Global steel manufacturing utilization rates (ex-China) improved to just over 60% in Q32, from ~57% in Q2  Steel prices have been

  7. Slide 7: Commercial Outlook

    Commercial Outlook  While customers have been notably impacted by the current environment, conditions are improving  Developing mutually beneficial solutions with customers struggling to take committed volumes  Substantial progress in completing several “blend and extend” contract modifications 

  8. Slide 8: Production and Sales

    Production and Sales  Aligned production levels with sales volumes  Sales volumes down due to graphite electrode inventory overhang and COVID-related lower steel production levels Production (000 MT) Sales Volumes (000 MT) Net Sales ($M) 40 136 40 130 $1,376 32 33 98 98 $421 $886 $287 Q3/19 Q3/20

  9. Slide 9: Earnings and Cash Flow

    Earnings and Cash Flow  Continuing to deliver solid results in a challenging environment  Majority of Adjusted EBITDA1 converts to Free Cash Flow2 Earnings Per Share Adjusted EBITDA ($M)1 Free Cash Flow ($M)2 $814 $541 $1.96 $386 $483 $0.61 $1.15 $211 $245 $0.35 $153 $123 Q3/19 Q3/20 YTD/19 YTD/20

  10. Slide 10: Maintaining Financial Discipline

    Maintaining Financial Discipline Prioritizing Balance Sheet Strength and Financial Flexibility  Continued emphasis on reducing debt, lower by ~$150 million in Q3, ~$60 million in October and ~$313 million YTD  Expect full year 2020 capital expenditures of ~$35 million, a ~50% decrease y/y  Managi

  11. Slide 11: 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

  12. Slide 12: Disclosures

    Disclosures GRAF! cl) 12 Internatio

  13. Slide 13: 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

  14. Slide 14: Reconciliation to Adjusted EBITDA

    Reconciliation to Adjusted EBITDA For the Three Months For the Nine Months Ended September 30, Ended September 30, (in thousands) 2020 2019 2020 2019 Net income $ 94,234 $ 175,876 $ 309,278 $ 569,680 Add: Depreciation and amortization 16,241 15,357 45,074 46,387 Interest expense 22,474 31,803 69,026

  15. Slide 15: Reconciliation to Free Cash Flow

    Reconciliation to Free Cash Flow For the Three Months For the Nine Months Ended September 30, Ended September 30, (in thousands) 2020 2019 2020 2019 Net cash provided by operating activities $ 129,009 $ 225,749 $ 416,665 $ 584,772 Capital expenditures (6,333) (14,854) (30,688) (44,053) Free cash flo

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