From the Sector

• Forecast raised for 2021

Based on the encouraging business performance in the first half of 2021 and the transformation successes, SGL Carbon expects strong Group results for the first six months of 2021 and raises its guidance for fiscal year 2021.

The company expects to exceed the upper end of the stated range of its Group EBITDA pre1 guidance (earnings before interest, taxes and depreciation adjusted by non-recurring items and one-time effects) for fiscal year 2021 of EUR 100 to 120 million and raises the EBITDA pre guidance for 2021 to EUR 130 –140 million.

SGL Carbon's sales forecast is also increased slightly to approximately EUR 1.0 billion for the current fiscal year, up from EUR 920 – 970 million originally. The company expects free cash flow for the full year to be correspondingly above the forecast of EUR 20 million given at the beginning of the year. A slightly positive consolidated net result is also predicted for 2021.

Previously, the company had assumed a consolidated net result of between EUR -20 million and EUR 0. According to preliminary figures, SGL Carbon expects Group sales for H1 2021 of around EUR 496 million (H1 2020: EUR 456.5 million). This corresponds to an increase of around 9% compared to the same period of the previous year. Based on the sales increase and the cost effects achieved from the transformation, EBITDA pre (EBITDA before non-recurring items and one-time effects) increased to around EUR 72 million in the first six months of 2021 (H1 2020: EUR 42.0 million).

The updated forecast for fiscal 2021 has been prepared on the basis of the prevailing market environment and assumes no deterioration in conditions due to the corona pandemic. In particular, it is based on the assumption that purchasing prices and logistics chains remain stable and production lines remain in operation. The communicated medium-term targets up to 2025 remain unaffected by the forecast adjustment. SGL Carbon will release its 2021 half-year figures as planned on August 12, 2021.

SGL Carbon reagiert mit konsequenten Gegenmaßnahmen auf die Krise und stößt umfangreiche Transformation an – stabiles EBIT vor Sondereinflüssen und deutlich positiver Free Cashflow im schwierigen Coronajahr 2020

• Konzernumsatz 2020 bei 919,4 Mio. € und damit um 15 % unter dem Vorjahresniveau
• Nettoergebnis wegen Wertminderung bei CFM und Restrukturierungsaufwendungen bei minus 132,2 Mio. € (Vorjahr: -90,0 Mio. €)
• EBIT vor Sondereinflüssen mit 50,2 Mio. € leicht über Vorjahr (48,4 Mio. €)
• Operatives EBIT vor Sondereinflüssen und Einmaleffekten mit 19,5 Mio. € leicht über den Erwartungen
• Free Cashflow mithilfe von strengen Investitions- und Ausgabenbegrenzungen sowie Einmaleffekten deutlich gesteigert um 91,0 Mio. € auf 73,7 Mio. €
• Nettofinanzschulden trotz Kaufpreiszahlung für Carbonfaserwerk in Moses Lake geringfügig reduziert auf 286,6 Mio. €
• Restrukturierungs- und Transformationsprogramm: bis 2023 jährlich wiederkehrende Einsparungen in Höhe von mehr als 100 Mio. € avisiert, davon bereits 40 Mio. € im Geschäftsjahr 2020 erzielt
• Prognose für 2021: Umsatzerlöse zwischen 920 und 970 Mio. €, bereinigtes EBITDA bei 100 bis 120 Mio. € (2020: 92,8 Mio. €)

Die Corona-Pandemie hatte im Geschäftsjahr 2020 einen wesentlichen Einfluss auf die Geschäftsentwicklung der SGL Carbon. Auch wenn die Produktion bei der SGL Carbon dank effektiver Hygiene- und Schutzmaßnahmen zu keinem Zeitpunkt heruntergefahren werden musste, war das Unternehmen mit einer deutlich reduzierten Nachfrage konfrontiert. Während für das Berichtssegment Composites – Fibers & Materials (CFM) eine Nachfrageerholung zum Jahresende festzustellen war, hat sich die Nachfrage im Berichtssegment Graphite Materials & Systems (GMS) bis zum Jahresende nur wenig belebt. Der Konzernumsatz lag 2020 bei 919,4 Mio. € und damit um 15 % unter dem Vorjahresniveau (2019: 1.086,7 Mio. €). Wegen einer Wertminderung bei CFM sowie durch Restrukturierungsaufwendungen betrug zudem das Nettoergebnis minus 132,2 Mio. € nach minus 90,0 Mio. € im Vorjahr.

Prognose: Entwicklung des Konzerns

Nach dem starken wirtschaftlichen Einbruch im Jahr 2020 gehen wir davon aus, dass das Geschäftsjahr 2021 von einer moderaten Erholung geprägt sein wird. Die Umsatzerlöse sollten über dem Vorjahresniveau (2020: 919,4 Mio. €) in der Spanne zwischen 920 und 970 Mio. € liegen. Für das bereinigte EBITDA erwarten wir eine Verbesserung auf 100 bis 120 Mio. € (2020: 92,8 Mio. €). Hier werden sich insbesondere Einsparungen aus den eingeleiteten Restrukturierungsmaßnahmen positiv widerspiegeln. Nach einem Konzern-Jahresfehlbetrag der fortgeführten Aktivitäten von 132,9 Mio. € im Geschäftsjahr 2020, der primär auf Wertminderungen bei CFM und die Restrukturierungsaufwendungen zurückzuführen ist, dürfte sich das Nettoergebnis (fortgeführte Aktivitäten) im Jahr 2021 deutlich verbessern und im Bereich zwischen minus 20 Mio. € und einem ausgeglichenen Ergebnis liegen.

• SGL Carbon supplies first plants with DIN EN1591-1 tightness certification to the chemical industry
• First column already delivered to major European customer

In plant operation in the chemical industry, the tightness of flanged joints is becoming increasingly important when dealing with aggressive and corrosive operating media. In accordance with European Union requirements, the German government has defined new requirements in the first administrative regulation to the Federal Immission Control Act (BImSchG), which will apply from January 2021. SGL Carbon is the first manufacturer of PTFE-lined columns to be able to provide the required proof of tightness according to DIN EN 1591-1 and has already delivered the first column with the new certification to a major European customer.

Specifically, the Technical Instructions on Air Quality Control (TA-Luft) of the Federal Immission Control Act (BImSchG) prescribe new, stricter emission values (leakage class L0.01) for keeping the air clean, which must be complied with when operating plants requiring a permit. In order to be able to guarantee the technical tightness of steel/PTFE flanged joints, SGL Carbon, together with a working group of other companies, first determined the EN 13555 sealing characteristic values, which reflect the material-specific PTFE properties as well as the characteristic manufacture and shaping of the linings. With these characteristic values integrated in a database, SGL experts were able to perform realistic DIN EN 1591-1 calculations for flanged joints of a packed column lined with POLYFLURON PTFE and prove the tightness in accordance with TA-Luft. The design, final acceptance and pressure tests in accordance with Directive 2014/68/EU (PED) were successfully certified by a recognized notified body.

"With the rapid implementation of the new  tightness requirements for columns, our solutions offer customers further significant added value, which is currently also being applied to other products. Our sales team and technical service are available to provide customers with comprehensive advice on the new directives and our products," explains Ralph Spuller, Director Product Management in the Process Technology (PT) Business Unit at SGL Carbon.

• Carbon fibers combined with injection molding replace conventional steel construction
• SGL Carbon supplies innovative carbon fiber profiles
• Serial use in a future high-volume model of BMW Group
• Construction method offers great potential for use in other automotive projects

Already in August, SGL Carbon received a multi-year order from Koller Kunststofftechnik GmbH for the production of novel carbon fiber profiles for serial use in windshields for a future high-volume model of BMW Group.

The profiles are particularly flexible fiber tows, pre-impregnated with thermoplastic resin in various dimensions. They will be compiled by SGL Carbon on the basis of its own 50k carbon fiber at its site in Innkreis, Austria, and subsequently processed by the injection molding experts at Koller to form a skeletal plastic component. The composite component will replace the previous steel-based windshield. Production of the carbon fiber profiles will start in the remainder of 2020 and will then be ramped up gradually over the next few years for the BMW Group model launch.

In the vehicle, the windshield is a connecting element between the roof frames and thus has an important stabilizing function. The carbon fiber profiles add the required stiffness and crash safety to the component. At the same time, they help to significantly reduce the weight of the roof and thus also support the driving dynamics. The injection molding process also enables particularly complex and material-efficient structures. In the BMW Group model, this innovative component concept will cut weight by 40 percent compared to conventional steel designs of the component while creating important space for cable ducts and sensors.

The production of the carbon fiber profiles themselves is also particularly geared to material and process efficiency in large-scale production. The profiles consist of several smaller fiber strands, the so-called rods, and are manufactured using the modern continuous pultrusion process. During product and process development it was one key objective to ensure that material loss during production is almost completely avoided.

"At SGL Carbon, we have been working on the development of thermoplastic carbon fiber profiles for use in injection molding for some time already. This development work is now beginning to pay off. Due to the many advantages and competitive costs, we see a great potential for the technology to be used in other automotive projects too," explains Sebastian Grasser, Head of the Automotive Segment in the Business Unit Composites - Fibers & Materials at SGL Carbon.

"Innovative lightweight construction with hybrid designs has developed into a strategically conclusive concept for Koller Group's OEM customers," confirms Max Koller, CEO of Koller Group. "SGL Carbon's high level of material expertise, combined with the process know-how of KOLLER Kunststofftechnik and KOLLER Formenbau, create the basis for a promising future in innovative lightweight construction technologies. With this order, the BMW Group has confirmed its confidence in the successful cooperation between SGL and Koller; we are particularly pleased about this", said Max Koller.
 
The Koller Group is a globally operating technology company with plants in Europe and China, as well as NAFTA. The Koller Group develops and manufactures lightweight construction, tools and serial components, primarily for the automotive industry.

Wie am 17. August 2020 berichtet, hatte der Aufsichtsrat der SGL Carbon SE Thomas Dippold mit Wirkung zum 1. Dezember 2020 zum CFO und Mitglied des Vorstands der SGL Carbon SE bestellt. Erfreulicherweise kann Herr Dippold kurzfristig sein Amt als Vorstandsmitglied der SGL Carbon SE früher antreten, so dass der Aufsichtsrat der Gesellschaft seine Bestellung nun auf den 15. Oktober 2020 vorgezogen hat, auch um die geplante Übernahme der CFO-Position vorzubereiten.

Herr Dippold tritt wie berichtet zum 1. Dezember 2020 die Nachfolge des langjährigen Finanzvorstands Dr. Michael Majerus an, der zum 30. November 2020 in gutem gegenseitigen Einvernehmen aus seinem Amt ausscheidet.

Dr. Stephan Bühler legt plangemäß sein Amt als Vorstandsmitglied zum 15. Oktober 2020 nieder.

• Am 1. September 2020 hat die SGL Carbon 33 neue Auszubildende in Deutschland begrüßt.

An den Standorten Meitingen und Bonn sind die jungen Menschen in unterschiedlichen technischen und kaufmännischen Berufen sowie in dualen Studiengängen in ihr Berufsleben gestartet. Am österreichischen Standort im Innkreis hat bereits Anfang August ein Lehrling die Arbeit aufgenommen.

Die Auszubildenden (in Österreich: Lehrlinge) werden in vielfältigen Fachrichtungen auf ihre spätere Laufbahn als Fachkräfte vorbereitet. Dazu zählen unter anderem die Berufe Industriemechaniker/in, Elektroniker/in für Betriebstechnik, Maschinen- und Anlagenführer/in, Chemielaborant/in, Verfahrensmechaniker/in und Bürokaufmann/-frau. Darüber hinaus bietet die SGL Carbon seit einigen Jahren auch duale Studiengänge mit betriebswirtschaftlichem oder technischem Schwerpunkt an. In diesem Jahr starten hier vier Studenten in den Fachrichtungen chemische Technik, Elektrotechnik, Mechatronik und Umwelttechnik.

Uwe Moderer, Ausbildungsleiter in Meitingen, dem größten Standort der SGL Carbon: „Speziell in diesen besonderen Zeiten ist es wichtig, jungen Menschen eine Perspektive zu geben. Wir freuen uns daher sehr, unsere neuen Auszubildenden willkommen zu heißen.“

Pro Jahr stellt die SGL Carbon im Schnitt etwa 30 neue Auszubildende ein. Bereits jetzt läuft das Bewerbungsverfahren für den Ausbildungsbeginn im September 2021.

• Sales and recurring EBIT significantly decreased in first half of 2020

As expected, the second quarter of SGL Carbon was impacted by the Corona pandemic, but not to the extent predicted in May when the quarterly statement for the period ended March 31, 2020 was published. Sales in the three months as per end of June decreased approximately 23 percent year-on-year, whereas Group recurring EBIT was at around 2 million euros and thus higher than anticipated. In total, SGL Carbon reached Group sales of 457 million euros in the first half year. This corresponds to a decrease of around 19 percent year-on-year. The decline is due to a pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM) due to capacity adjustments. Group recurring EBIT was down approximately 71 percent to 11 million euros.

At a glance*:

• Sales in the second quarter approximately 23 percent below prior-year period; Group recurring EBIT of around 2 million euros was slightly better than anticipated at the presentation of the results of the first quarter 2020
• Group sales in the first half year 2020 at almost 457 million euros and thus around 19 percent below the prior-year period; decrease in sales due to pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM)
• Group recurring EBIT down approximately 71 percent to 11 million euros
• As a result of measures taken at an early stage and contrary to the normal seasonal trend, cash and cash equivalents at nearly 154 million euros as of June 30, 2020 developed very positively compared to the end of 2019
• According to the full year forecast published on July 28, 2020, SGL Carbon expects Group sales to decline by 15 to 20 percent and a slightly positive operating recurring EBIT
• Dr. Torsten Derr, CEO of SGL Carbon: "My ambition is to achieve lasting success with SGL Carbon. Over the past two months, we have been conducting a comprehensive analysis of our processes, structures and markets. Based on this, we will identify the options that will enable us to sustainably increase our profitability. The Corona pandemic is forcing us to act even faster."

*Please read the attached document for more information

No significant impact yet from Covid-19 pandemic in the first quarter 2020:

• Group sales revenues at 247 million euros approximately 15 percent below prior year’s level, but slightly above the guidance corridor (220 to 240 million euros) as published in March 2020
• Decline in Group sales due to changes in the lithium-ion battery supply chain in the business unit Graphite Materials & Systems (GMS) as well as restructuring-driven lower sales in Textile Fibers in the business unit Composites – Fibers & Materials (CFM)
• Group recurring EBIT approximately 50 percent below prior year level at 9 million euros and at the upper end of the guidance corridor (mid to high single-digit million euros amount)
• Due to timely implemented measures and in contrast to the usual seasonal pattern, liquidity of approximately 150 million euros as of March 31, 2020 developed very favorably compared to year-end 2019 (137 million euros)
• Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon: “We acted decisively and took various measures at an early stage, both to ensure the safety of our employees and to mitigate the economic impact of the pandemic.”
• Guidance for the full year 2020 remains suspended due to the impacts of the Covid-19 pandemic; decline in Group sales revenue and negative Group recurring EBIT expected for the second quarter 2020

In the first quarter 2020, SGL Carbon has not yet been significantly impacted by the Covid-19 pandemic and reached sales revenues slightly above the guidance corridor of 220 to 240 million euros published on March 12, 2020. In total, Group sales at 247 million euros was approximately 15 percent below the prior year level. The development is primarily attributable to changes in the lithium-ion battery supply chain in the business unit Graphite Materials & Systems (GMS) as well as to restructuring-driven lower sales in Textile Fibers in the business unit Composites – Fibers & Materials (CFM). As planned, Group recurring EBIT decreased by approximately 50 percent to 9 million euros and thus reached the upper end of the guidance corridor of a mid to high single-digit million euros amount.

As the global measures taken to contain the pandemic led to disruptions in production and supply chains in April and early May 2020, a significant double-digit percentage decrease in Group sales revenue and a negative Group recurring EBIT are expected for the second quarter 2020.  

SGL Carbon implemented various measures to counter the economic impact of the pandemic at an early stage. For this reason, liquidity developed very favorably compared to year-end 2019 and in contrast to the usual seasonal pattern and improved from 137 million to approximately 150 million euros.

• New composite e-Mobility application
• Multi-year substantial contract

After prototypes for a Chinese automotive manufacturer, a major order from a North American automaker, and yet another order for a European sports car manufacturer, SGL Carbon has now been nominated by BMW Group to produce a cover component for battery enclosures in series. This substantial multi-year order will include the production of an innovative glass-fiber-based cover plate for the battery housing for usage in a future plug-in hybrid model of BMW Group.

Materials made of composites are suited for battery enclosures for different reasons: Besides their light weight, which enhances the electric vehicle’s range, fiber-reinforced plastics offer high stiffness. In addition, they meet high requirements for water and gas tightness and feature excellent fire protection properties. Composite materials can also help to achieve improved structural stiffness of the underbody, e.g. to protect against penetration, as well as an optimized thermal management. Carbon fibers are ideal for especially stressed structures or load-bearing elements, such as the underbody panels and side frames. For components subjected to less stress, such as battery box covers, glass fibers or a fiber mix may suffice.

In addition to the new application for the hybrid model battery enclosure, SGL Carbon will continue producing the usual components made of carbon-fiber-reinforced plastic for the BMW i3 and delivering materials for the Carbon Core body of the BMW 7 series, and has been nominated as the supplier for all carbon materials - fibers, textiles, stacks - for the BMW iNEXT, set to be launched in 2021.

The Board of Management of SGL Carbon SE (ISIN: DE0007235301) has decided not to hold the Annual General Meeting on April 22, 2020, as planned, but to postpone it to a later date.

The cancellation of the Annual General Meeting convened for April 22, 2020, is due to the latest measures taken by the federal government, the federal states and municipalities in connection with the spread of the coronavirus (SARS-CoV-2) as well as the assessment of the Robert Koch Institute and the relevant authorities that in the following weeks infections in Germany will likely increase further. In this situation, the Board of Management decided not to hold the event on April 22, 2020, in the interest of protecting the health of our shareholders, our employees, and our service providers involved in the Annual General Meeting.

The Company will reschedule the Annual General Meeting to a later date in 2020. SGL Carbon SE will monitor the situation closely in the coming weeks and, depending on the further development of the infections, will invite its shareholders to a new date for the Annual General Meeting.