Implementation of cost savings program SGL05 as planned - Restructuring continues in 04

03-10-2014 Implementation of cost savings program SGL2015 as planned - Restructuring continues in 2014 - Sales decreased by 10% to 1,477 million compared to previous year

- EBIT before non-recurring charges down to 19,5 million

- Non-recurring charges and restructuring expenses of 227 million

- Free cash flow improved by 104 million to 38,2 million

- Outlook for 2014 impacted by continued difficult market environment in graphite electrodes

Wiesbaden, March 10, 2014. The fiscal year 2013 developed weaker than originally anticipated for SGL Group - The Carbon Company - but in line with the adjusted June guidance. Primarily due to the unsatisfactory price development in graphite electrodes and the cyclical downturn in graphite specialties, Group sales declined by 10% to 1,477.0 million. As a result of the adverse development in all three Business Areas, Group EBIT before non-recurring charges decreased to 19.5 million (2012: 164.4 million) and EBIT margin was down to 1.3 % (2012: 10.0 %). Group-wide savings from the cost savings program SGL2015 amounted to approximately 69 million, thereby significantly exceeding the expected savings of 50 million. Approximately 27 million of savings were attributable to the SGL Excellence initiative.

Within the context of the repositioning of the Company and the difficult economic environment, negative non-recurring charges totaling 226.9 million had to be recorded on EBIT level. These included impairments of 120.6 million and project write-offs of 22.1 million in the Business Area Carbon Fibers & Composites and SGL2015 related restructuring expenses of 84.2 million. Accordingly, Group EBIT including non-recurring charges and restructuring expenses was minus 207.4 million (2012: 110.2 million).

J rgen K hler, CEO of SGL Group: 2013 was operationally one of the most difficult years ever for our Company and developed disappointingly. As a result, we implemented the comprehensive group-wide cost savings program SGL2015 to counter the increasing challenges. Regarding the realignment of the Company, initial successes have been achieved. Now it is important to drive the restructuring process forward and return SGL Group to a sustainable profitable growth track. As a technology company, we will ensure a balance between cost savings and investments in future technologies and innovations.

No dividend payment for fiscal year 2013 The financial result improved slightly from minus 53.5 million to minus 50.7 million compared to 2012. Result before taxes therefore stood at minus 276.4 million (2012: 24.1 million) and net loss of continued operations at 365.2 million (2012: profit of 20.1 million), including extraordinary tax expenses of 84 million. This resulted in a net loss of 396.4 million (2012: profit of 5.9 million) for 2013.

Based on an average number of shares of 70.9 million, basic earnings per share dropped to minus 5.59 (2012: 0.08). Due to the high losses in fiscal year 2013 and the weak start into this business year, the Board of Management and the Supervisory Board of SGL Carbon SE will not propose a dividend payment for the fiscal year 2013 to the Annual General Meeting.

In the reporting year 2013, total assets decreased by 21.5 % to 2,009.2 million (December 31, 2012: 2,559.7 million). This was caused by the non-recurring charges mentioned above, the repayment of the convertible bond of 145.5 million in May 2013, write-downs on capitalized deferred tax assets, and the deconsolidation of SGL Rotec. These extraordinary effects led to a decrease in shareholders' equity to 650.8 million (December 31, 2012: 1,067.0 million) and a reduced equity ratio of 32.4 % (December 31, 2012: 41.7 %).

Significantly positive free cash flow of 38.2 million Free cash flow improved significantly by 104 million to plus 38.2 million (2012: minus 66.2 million) due to substantially reduced working capital and lower cash used in investing activities. As a consequence, net financial debt of SGL Group was reduced to 447.7 million (December 31, 2012: 459.3 million).

Segment Reporting Performance Products (PP): Closures of production sites as a consequence of a difficult market environment Primarily due to the unsatisfactory price development in graphite electrodes, sales in the Business Area PP decreased by 20 % to 755.9 million (2012: 940.7 million). Accordingly, EBIT before restructuring expenses was down to 69.4 million (2012: 179.2 million) and the EBIT margin to 9.2 % (2012: 19.0 %). Savings from SGL2015 amounted to 28.2 million, of which 12.5 million were attributable to the SGL Excellence Initiative. The announced site closures in Lachute (Canada) and Narni (Italy) as well as further measures in connection with SGL2015 resulted in restructuring expenses of 59.5 million.

Graphite Materials & Systems (GMS): Sales and EBIT impacted by difficult environment Sales in the Business Area GMS decreased 16 % to 408.1 million (2012: 486.2 million). Whilst the Business Unit Process Technology remained on previous year's record level, Graphite Specialties recorded a substantial sales decline due to lower demand from major customer industries.

The reduced capacity utilization of the production facilities resulted in a lower EBIT of 30.1 million (2012: 67.4 million) and an EBIT margin of 7.4 % (2012: 13.9 %). Cost savings from SGL2015 amounted to 13.6 million, of which 7.9 million were attributable to SGL Excellence.

Carbon Fibers & Composites (CFC): Sales up by more than 40 % Sales of the continued operations (excluding SGL Rotec divested end of 2013) increased by 44.5 % to 309.3 million (2012: 214.1 million). The Portuguese acrylic fiber producer Fisipe, acquired in 2012, contributed 116.7 million (2012: 81.1 million) to sales. EBIT before non-recurring charges was minus 32.9 million (2012: minus 23.9 mill

LINK:	http://www.sglgroup.com/cms/international/press-lounge/news/2014/03/03...
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