Lenzing Ag · VIE:LNZ
Lenzing — H1 2016 Earnings Presentation
25 slides from Lenzing's earnings presentation, Aug 24, 2016
Slide 1: Leading Fiber Innovation
Leading Fiber Innovation Lenzing Investor Presentation First Half-Year 2016 result August 24, 2016
Slide 2: Disclaimer
Disclaimer The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.
Slide 3: Highlights H1/2016
Highlights H1/2016 Good organic growth - Very solid demand across all products Group revenue up 8.3% vs H1/2015 Fiber business grew by 12.3% due to pricing and product mix Strong progress: EBITDA up 54.3% from EUR 126.5 mn to EUR 195.1 mn (H1/2016 vs. H1/2015) Working capital improvement f
Slide 4: Commercial launch of a new sustainability innovation concept
Commercial launch of a new sustainability innovation concept Major breakthrough for the ‘Circular economy’ on a big scale Special TENCEL® fiber made with recycled cotton. Upscaling of cotton and significant reduction of cotton fabric waste in the garment production Business model innovation: wo
Slide 5: Lenzing underpins its innovation leadership
Lenzing underpins its innovation leadership R&D is an essential part of the sCore TEN strategy and contributes to all five fields R&D expenses (2012-2016e)1 Substantial progress with respect to strategic innovations EUR mn and thus looking at a very healthy R&D pipeline affecting % 60 2.5 strate
Slide 6: Focus on specialties: capacity additions until 2018
Focus on specialties: capacity additions until 2018 Investment of EUR 100 mn debottlenecking existing specialties sites Around EUR 30 mn investment in Lenzing (Austria) Around EUR 70 mn investment in Heiligenkreuz (Austria) Fast and low cost capacity ramp up 10 kt1 still in 2016 Full 35
Slide 7: Interfiber price development
Interfiber price development Staple fiber prices - Development in China USD/kg (incl. VAT) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 01/2010 08/2010 03/2011 10/2011 05/2012 12/2012 07/2013 02/2014 09/2014 04/2015 11/2015 06/2016 Viscose Cotton Polyester Sources: CCFGroup, CIRFS, Cotton Outlook, Fiber
Slide 8: Cotton market developed unevenly in H1/2016
Cotton market developed unevenly in H1/2016 Cotton market Cotton price increased slightly in Q2/2016 after a mt 30 further decline in Q1/2016 26.12 24.18 25 23.85 22.89 23.93 22.32 Strong demand for cotton from Chinese government’s 21.26 19.67 18.63 20 reserve with daily average sales volume of
Slide 9: Healthier price level in the wood based fiber market in H1/2016
Healthier price level in the wood based fiber market in H1/2016 VSF1 price trend and inventory of China Continuous strong demand for cellulose fibers day Lower inventory level yuan/mt 15,000 30 (Ø 11.5 days in H1/2016 vs Ø 16 days 14,000 20 in H1/2015) 13,000 12,000 Higher operating rates at 8
Slide 10: Revenue and specialty fibers share (EUR mn)
Revenue and specialty fibers share (EUR mn) Share of specialty fibers +8.6% +8.3% in H1/2016 1,034.8 522.0 955.4 518.0 10.0% 512.8 503.4 42.4% 47.6% 480.9 Speciality fibers1 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 H1/2015 H1/2016 Standard fibers Group revenue Group revenue Other business areas 1) Sp
Slide 11: EBITDA (EUR mn)
EBITDA (EUR mn) EBITDA margin EBITDA margin 13.9% 16.7% 15.4% 18.0% 19.7% 13.2% 18.9% +54.3% 195.1 +53.9% 126.5 102.9 92.2 84.1 79.5 66.9 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 H1/2015 H1/2016 EBITDA EBITDA 11
Slide 12: EBIT (EUR mn)
EBIT (EUR mn) EBIT margin EBIT margin 7.0% 10.2% 7.6% 11.6% 13.5% 6.3% 12.5% +114.6% +109.7% 129.7 70.3 59.5 51.5 39.1 60.5 33.5 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 H1/2015 H1/2016 EBIT EBIT 12
Slide 13: Net profit (EUR mn) and earnings per share (EUR)
Net profit (EUR mn) and earnings per share (EUR)1 EPS2 (EUR) EPS2 1.33 1.26 1.55 1.64 1.85 1.98 3.49 +83.9% +44.1 % 94.6 50.3 43.3 44.2 34.9 33.4 51.4 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 H1/2015 H1/2016 Group net profit Group net profit 1) Restatement according to IAS 8 (see note 2 of interim re
Slide 14: Key figures (EUR mn)
Key figures (EUR mn) According to IFRS (EUR mn) June 30, Dec. 31, Change 2016 2015 in % 900 Total assets 2,468.2 2,410.63 2.4 800 731 714 683 670 Liquid assets1 487.2 355.3 37.1 700 637 thereof liquid funds 479.2 347.3 38.0 600 487 Total liabilities 1,247.0 1,211.83 2.9 500 402 428 381 thereof finan
Slide 15: Cash flow development and trading working capital (EUR mn)
Cash flow development and trading working capital (EUR mn) +8.1% (Gross CF) +17.7% (Gross CF) +164.9% (Operating CF) +169.9% (Operating CF) +196.0% (Free CF adj.) +209.7% (Free CF adj.) -19.2% 600 48.0% 164.4 268.8 500 43.0% 448 447 431 424 38.0% 139.8 228.3 400 362 33.0% 104.3 172.4 23.3% 21.0% 28.
Slide 16: Outlook 2016
Outlook 2016 A good environment for the global fiber market environment is anticipated in the second half of 2016. The market for “wood-based cellulose fibers”1 is currently developing very positive due to strong demand and unchanged supply. The positive market environment and strong earnings figure
Slide 17: Q2/2016 – Financial information
Q2/2016 – Financial information
Slide 18: Q2/2016: Consolidated Group P&L
Q2/2016: Consolidated Group P&L (EUR mn) Q2/2016 Q1/2016 Q2/2015 H1/2016 H1/2015 Revenue 522.0 512.8 480.9 1,034.8 955.4 Change in inventories of finished goods and work in progress 2.4 (10.4) (1.9) (8.0) (6.1) Own work capitalized 5.4 6.1 7.1 11.5 13.0 Other operating income 11.8 11.4 15.2 23.3 35.
Slide 19: Q2/2016: Topline breakdown
Q2/2016: Topline breakdown Change Change Change (EUR mn) Q2/2016 Q1/2016 Q2/Q1 (%) Q2/2015 Q2/Q2 (%) H1/2016 H1/2015 H1/H1 (%) Breakdown of Fibers segment revenue Textile fibers (%) 71.2 70.7 - 69.3 - 71.0 68.2 - Nonwoven fibers (%) 28.8 29.3 - 30.7 - 29.0 31.8 - Fibers only 466.8 462.3 1.0 415.1 12
Slide 20: Q2/2016 Total Opex structure
Q2/2016 Total Opex structure Q2/2015 (Total Opex EUR 434.4 mn) H1/2015 (Total Opex EUR 871.4 mn) 15.3% 13.7% 66.3 119.8 17.4% 17.3% 151.3 67.5% 68.9% 75.0 293.1 600.3 Cost of material and purchased services Cost of material and purchased services Personnel expenses Personnel expenses Other operating
Slide 21: Q2/2016: Financials
Q2/2016: Financials EUR mn 11.1 2.7 103.81 242.4 Change in total working capital EUR 77.6 mn3 24.9 2 69.4 53.1 1.4 1.7 3.1 150.1 8.3 Net Financial Tax Net Interest Gross CF Cash Capex Change in Change in Dividend Transaction Currency Others Net Financial Debts Q1 (incl. Fin. Trading WC other WC from
Slide 22: H1/2016: Financials
H1/2016: Financials EUR mn 5.2 198.8 1 21.2 327.9 Change in total working capital EUR 96.5 mn 3 41.3 2 76.1 53.2 1.4 1.1 3.1 150.1 20.5 Net Financial Tax Net Interest Gross CF Cash Capex Change in Change in other Dividend Transaction Currency Others Net Financial Debts FY 2015 (incl. Fin. Ass.) Trad
Slide 23: Q2/2016: Cash flow
Q2/2016: Cash flow Change Change Change (EUR mn) Q2/2016 Q1/2016 Q2/Q1 (%) Q2/2015 Q2/Q2 (%) H1/2016 H1/2015 H1/H1 (%) Gross CF (before taxes and interest) 103.8 95.0 9.2 94.8 9.5 198.8 152.6 30.3 Taxes and interest (13.8) (12.6) 9.3 (11.5) 19.5 (26.4) (6.1) 331.3 Gross CF (after taxes and interest)
Slide 24: Lenzing share information
Lenzing share information Oberbank AG 5.0% ISIN LNZ / AT0000644505 Bloomberg LNZ:AV Reuters LNZNF.PK ATX Prime, ATX Global Players, VÖNIX Indices Sustainability Index Number of shares 26,550,000 Free float 27.4% Share price June 30, 2016 EUR 83.00 B&C Privatstiftung Market capitalization EUR 2,203.6
Slide 25: Contacts and financial calendar
Contacts and financial calendar Investor Relations contact Financial calendar Stephanie Kniep Full year result March 23, 2016 Head of Investor Relations 71st Annual General Meeting April 20, 2016 Corporate Communications & Investor Relations Result 1st quarter May 12, 2016 Phone: +43 7672 701 40