SGL Carbon evaluates strategic options for the Business Unit Carbon Fibers 

• Review of all options for the Business Unit Carbon Fibers   

• Management Board does not exclude a partial or complete sale of the Business Unit 

Wiesbaden, February 23, 2024. SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached promptly with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step. Overall, a share of sales amounting to around € 179.6 million after nine months in 2023 (9M 2022: € 269.0 million) is therefore under review. The CF sales share corresponded to 21.9% of SGL Carbon's consolidated sales after nine months in 2023 (9M 2022: 31.5%). Adjusted EBITDA¹ of the Business Unit excluding the result from joint ventures amounted to minus € 10,9 million after nine months in 2023 (9M 2022: € 27,9 million). Despite the operating loss of CF after nine months in 2023, SGL Carbon maintains its guidance for fiscal year 2023. This shows the positive development of the three other business units and the resilience of SGL Carbon's business model. 

"After the restructuring from 2020 to 2022 and the stabilization year 2023, SGL Carbon is preparing for the next step of profitable growth. We have positioned SGL Carbon in such a way that the four operating business units can be successful independently in their markets. In order to best exploit the development potential of our Carbon Fibers, we are currently evaluating all options, including a complete divestment. We are looking for a partner or new owner who can provide the necessary resources to further develop the Carbon Fibers business and position it successfully for the future," explains Dr. Torsten Derr, CEO of SGL Carbon SE. 

Carbon Fibers manufactures textile, acrylic and carbon fibers as well as composite materials at seven locations in Europe and North America. Following the temporary drop in demand for carbon fibers from the important wind industry market, the Business Unit's sales and earnings fell significantly in the course of fiscal year 2023. Due to the importance of the wind industry for the European Green Deal, SGL Carbon and many experts assumed that the wind industry recovers quickly. Unfortunately, this is currently not the case. Even if demand picks up, the company assumes that Carbon Fibers will need additional resources to remain competitive in the international market environment and to exploit market opportunities in the best possible way. Against this background, SGL Carbon is reviewing all possibilities to support a positive further development of the Carbon Fibers Business Unit. 

"As the Board of Management, it is our responsibility to make the best possible use of the company's resources in the interests of all stakeholders to create the conditions for future profitable growth and an increase in the company's value," explains Thomas Dippold, CFO of SGL Carbon SE. 

¹ The use of key figures in this release is analogous to the definition in the 2022 Annual Report (page 195). 

About SGL Carbon  

SGL Carbon is a technology-based company and a world leader in the development and production of carbon-based solutions. Its high-quality materials and products made from specialty graphite, carbon fibers and composites serve many industries that are shaping the trends of the future: climate friendly mobility, aerospace, solar and wind energy, semiconductors, and LEDs as well as the production of lithium-ion batteries, fuel cell and other energy storage systems. In addition, SGL Carbon develops solutions for chemical and industrial applications. 

In 2022, SGL Carbon SE generated sales of approx. 1.1 billion euros. The company has approx. 4,700 employees at 29 locations in Europe, North America, and Asia. 

Further information on SGL Carbon can be found at www.sglcarbon.com/press.  

Important note: 

To the extent that our press release contains forward-looking statements, the latter are based on information that is available at present and on our current forecasts and assumptions. Forward-looking statements, by their very nature, entail known as well as unknown risks and uncertainties that may lead to actual developments and events differing substantially from the forward-looking assessments. Forward-looking statements must not be understood to be guarantees. Instead, future developments and events depend on a large number of factors; they comprise various risks and imponderables and are based on assumptions that may possibly turn out not to be appropriate. These include unforeseeable changes to fundamental political, economic, legal and societal conditions, particularly in the context of our main customers’ industries, the competitive situation, interest and exchange rate trends, technological developments as well as other risks and uncertainties. We perceive additional risks e.g. in pricing developments, unforeseeable events in the environment of companies acquired and Group member companies as well as in current cost savings programs from time to time. The SGL Carbon assumes no obligation and does not intend to adjust or otherwise update these forward-looking statements either.  

SGL Carbon SE 

Claudia Kellert – Head of Capital Markets & Communications  

Soehnleinstrasse 8 
65201 Wiesbaden/Germany 

Telephone +49 611 6029-100 
Fax +49 611 6029-101 
press@sglcarbon.com 
www.sglcarbon.com 

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