Fiscal year 06: SGL Group made significant progre in the implementation of its strategic realignment - recurring EBIT exceeded prior year s level

Successful capital increase and expected proceeds from the ongoing sale of the business unit Performance Products (PP) will strengthen capital structure

Dr. J rgen K hler: In 2016 we strengthened our balance sheet and paved the way for future growth in our activities with customers and in numerous projects

Recurring EBIT up from 13.7 million to 20.7 million euros

Composites Fibers & Materials (CFM): recurring EBIT increased significantly due to higher capacity utilization and lower costs

Graphite Materials & Systems (GMS): downturn in the chemicals business due to lower oil price offset positive trends in the lithium-ion battery industry as well as in the solar and semiconductor segments

Net result substantially improved despite negative contribution from discontinued operations

Outlook for 2017 from continuing operations: mid single digit percentage increase in sales, recurring EBIT to increase more than proportionately to sales

Wiesbaden, March 21, 2017. In fiscal year 2016, SGL Group was able to increase earnings on slightly lower sales revenues. Recurring EBIT from continuing operations increased to 20.7 (previous year: 13.7) million euros. Business with the automotive industry within the CFM business unit chiefly contributed to this development, whereas GMS was impacted by the weakness in the North American oil and gas industry. At the same time, SGL Group implemented further important measures in the context of its strategic realignment. These included the accelerated finalization of the carve-out of the business unit Performance Products (PP) in June 2016, the agreement to sell the graphite electrode business to the Japanese company Showa Denko in October and the capital increase in December.

In fiscal year 2016 we laid the foundation for a new beginning and for our return to profitable and sustainable growth. We strengthened our balance sheet and paved the way for future growth with our activities with customers and in numerous projects. With our new Lightweight and Application Center, we were able to initiate development projects worldwide together with manufacturers from the automotive and other industries says Dr. J rgen K hler, CEO of SGL Group. For fiscal year 2017 we expect a mid-single digit increase in sales from our continuing operations and EBIT to increase more than proportionately to sales.

Sales of SGL Group from continuing operations in the fiscal year 2016 amounted to 769.8 (previous year: 789.5) million euros. This represents a 3 percent decline. Reported Group EBIT from continuing operations increased substantially from 6.9 million in 2015 to 23.7 million euros in 2016. Return on Capital Employed (ROCE) based on EBITDA before non-recurring charges rose from 7.9 percent in 2015 to 8.4 percent in 2016. Net financing result amounted to minus 50.9 (previous year: minus 52.3) million euros. The result from continuing operations before taxes improved to minus 27.2 (previous year: minus 45.4) million euros; after taxes, the net result amounted to minus 34.0 (previous year: minus 67.5) million euros.

Composites Fibers & Materials: significant increase of recurring EBIT

Sales in the business unit CFM declined slightly in fiscal year 2016, by 3 percent, to 317.4 (previous year: 327.3) million euros primarily due to lower revenues in the textile fibers market segment. The price of textile fibers is linked to the raw material acrylonitrile, which is indexed to the oil price. In contrast, recurring EBIT again improved significantly to 20.1 (previous year: 11.3) million euros. Contributing factors include better results in the business with the automotive industry, improved earnings in the market segment industrial applications and one-time high invoicing in HITCO's materials business. Consequently, the EBIT margin rose to 6.3 (previous year: 3.5) percent. EBIT after non-recurring charges came to 31.8 (previous year: 10.8) million euros mainly due to the sales agreement for the small carbon fiber production facility in Evanston (USA).

Graphite Materials & Systems: downturn in the chemicals market segment due to oil price offsets positive development in battery business

In the business unit GMS, sales fell slightly to 444.1 (previous year: 453.5) million euros. The development within the individual market segments varied quite significantly. Substantial progress was made in the business with anode materials for lithium-ion batteries as well as in the solar and semiconductor market segments. In contrast, the chemicals market segment suffered from lower demand from the North American oil and gas sector. As a result, recurring EBIT declined to 27.8 (previous year: 34.1) million euros. Accordingly, the EBIT margin, at 6.3 percent, was down on the previous year's level (7.5 percent). EBIT after non-recurring charges amounted to 26.2 (previous year: 28.9) million euros.

T&I and Corporate: results positively impacted by land sale

Recurring EBIT in the T&I and Corporate segment improved from minus 31.7 million to minus 27.2 million euros. This result includes a positive one-off effect from a land sale. Adjusted for this effect, recurring EBIT was roughly at the previous year's level. Including non-recurring charges mainly related to project CORE, EBIT declined slightly to minus 34.3 (previous year: minus 32.8) million euros.

Price decline for graphite electrodes still affects discontinued operations

Earnings from discontinued operations comprise the results of the business unit Performance Products (PP) and HITCO (composite components for the aircraft industry), which was sold at the end of 2015. The price decline for graphite electrodes (GE) once again had a significant impact on PP, although delivery volumes were slightly up year-on-year. Business with cathodes, furnace linings and carbon electrodes (CFL/CE) remained as good as expected. Result

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