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SGL Carbon evaluates strategic options for the Business Unit Carbon Fibers

23/02/2024

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 Carbons 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 Carbons 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 Units 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 companys resources in the interests of all stakeholders to create the conditions for future profitable growth and an increase in the companys 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).
LINK: https://www.sglcarbon.com/en/newsroom/news/press-report/sgl-carbon-eva...
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