SGL Carbon SE Corrects Its Guidance. Chief Executive Officer Dr. Jurgen Kohler Resigns.

August 19 2019

The actual results of July 2019 of the business unit Composites – Fibers & Materials (CFM) of SGL Carbon show a significant deviation from our expectations. Analyses of the actual results and the plan were conducted to clarify, whether this deviation has an impact on the guidance for the business unit and the Group. As a result, SGL Carbon has corrected their 2019 guidance for the business unit CFM and the Group.

For the business unit CFM, SGL Carbon now expects for the fiscal year 2019 a recurring EBIT1 in a mid-single digit million euro amount (previous guidance: recurring EBIT close to the prior year level of approximately 21 million euros).

The deviation to the previously expected recurring EBIT of the business unit CFM can be attributed to the following factors, each contributing approximately to half of the deviation:

• Within the framework of a high-volume contract in the market segment Wind Energy, which was initially shipped in July 2019, erroneous planning assumptions were discovered.
• The actual results for July 2019 also document that the anticipated recovery in the market segment Industrial Applications as well as the planned earnings improvement measures will not benefit the results in the second half 2019 in the expected magnitude.

Due to these new findings, counter measures will be required. Amongst others, restructuring measures are being considered.

This development also results in a new guidance for Group recurring EBIT for 2019: Results in the business unit Graphite Materials & Systems (GMS) and Corporate, which in total will be a mid-single digit million euros amount higher than expected, will only partially be able to compensate for the deterioration in the business unit CFM. Therefore, SGL Carbon now expects a recurring Group EBIT approximately 10 million euros below the prior year level (previous guidance: approximately on prior year level of 65 million euros). Accordingly, consolidated net results are expected to reach a high single digit million loss (previous guidance: break-even consolidated net result).

In consideration of these developments, the Group guidance for 2020-2022 is no longer sustainable. SGL Carbon plans to publish the new guidance after completing the new Group plan in January 2020 at the latest.

As a consequence of this development, the Chief Executive Officer Dr. Jurgen Kohler has informed the supervisory board that he has resigned from his mandate as Chief Executive Officer effective August 31, 2019.

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