Lenzing Ag · VIE:LNZ

Lenzing — Q3 2015 Earnings Presentation

23 slides from Lenzing's earnings presentation, Nov 12, 2015

  1. Slide 1: Lenzing Group – Leading Fiber Innovation

    Lenzing Group Leading Fiber Innovation LENZING INVESTOR PRESENTATION – NINE-MONTH REPORT 2015 November 12, 2015

  2. 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.

  3. Slide 3: Q3/2015: Executive summary

    Q3/2015: Executive summary Strongest quarter since Q2/2013  Strong earnings improvement Average Quarterly Gross VSF (TX) CCF/CNY/t  EBITDA +23.7% to EUR 84.1 mn 13,520 (Q3/2014: EUR 68.0 mn) 11,909 11,847 12,315  Group revenue up 10.0% y-o-y to EUR 503.4 mn 11,371 (Q3/2014 EUR 457.7 mn) Q3 Q4 Q1

  4. Slide 4: 9M/2015: Executive summary

    9M/2015: Executive summary Sustained positive development  Strongly improved profitability  EBITDA +31.7% to EUR 210.6 mn y-o-y (9M/2014: EUR 159.8 mn)  Net income +90.6% to EUR 84.4 mn  Group revenue 7.4% higher y-o-y (EUR 1.458.9 mn vs. EUR 1.357.7 mn)  Positive FX effects (USD, RMB)  Price

  5. Slide 5: Fiber price development

    Fiber price development Cotton A Index Viscose Staple Fibers medium-grade China (incl. 17% VAT) 19,000 120 18,000 110 17,000 16,000 100 30.09.2015 CNY/T 15,000 US-Cent/lb 14,380 90 14,000 31.12.2014 11,550 80 13,000 30.09.2015 12,000 70 67.25 31.12.2014 11,000 60 70.05 10,000 Cotton Future ICE NY Po

  6. Slide 6: Cotton prices remain under pressure

    Cotton prices remain under pressure  Cotton-A-Index dropped to 67.25 USct/lbs until Cotton market in mn tons1 end of Q3/2015 (Q3/2014: 89.55 USct/lb) 30 26.28 26.16 24.47 25.05 25 23.63 23.92  China 20.29 21.86 20.73 20  Limited reduction of China’s cotton reserve despite sales 15 from reserve st

  7. Slide 7: Competitive viscose environment

    Competitive viscose environment Strong viscose spot fiber market price increase in Q3/2015 VSF price trend and inventory of China  Still good demand paired with low inventory level CCF inventory index Medium-grade VSF 15,100 40  Strong China viscose spot fiber market price1 14,100 30 increased by

  8. Slide 8: Lenzing's marketing activities

    Lenzing‘s marketing activities  Textile – Apparel and Home & Interior  Bed linen: introduction of bed linen with warm touch properties  TENCEL® + wool: fiber blend concept to enhance wool blends with TENCEL® A100  Botanic lounge: promotion of carpets, upholstery fabrics at Mood in Brussels  Asi

  9. Slide 9: Financials – Revenue

    Financials – Revenue Tailwind due to FX effects, increased prices, better product mix Group Revenue Segment Fibers Revenue 503.4 499.9 457.7 432.3 Q3/2014 Q3/2015 Q3/2014 Q3/2015 1,458.9 1,417.6 1,357.7 1,285.4 Q3/2014 9M/2014 Q3/2015 9M/2015 Q2/2014 9M/2014 Q2/2015 9M/2015 November 12, 2015 - 9

  10. Slide 10: Financials – Earnings

    Financials – Earnings Strong improvement – 9M/2015 EPS at EUR 3.22 (9M/2014: EUR 1.68) Q3/2014 vs. Q3/2015 9M/2014 vs. 9M/2015 EUR mn EUR mn 84.1 210.6 68.0 159.8 51.5 112.0 37.1 32.9 84.4 29.1 69.5 44.3 14.9% 16.7% 10.2% 11.8% 14.4% 5.1% 7.7% 3.3% 5.8% 8.1% 6.4% 6.5% Margin EBITDA EBIT Net profit E

  11. Slide 11: Financials – KPI

    Financials – KPI Strong financial position and very low net financial debt According to IFRS (EUR mn) 30.09.2015 31.12.2014 Change in % Total assets 2,417.6 2,375.1 1.8 900 875 801 Liquid assets2 380.6 280.3 35.8 800 730 730 731 714 700 653 thereof cash and cash 613 equivalents 372.6 271.8 37.1 600

  12. Slide 12: Financials – Trading working capital ratio

    Financials – Trading working capital ratio Positive development EUR mn 23.5% 23.3% 21.2% 21.0% 19.5% Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Trading working capital in % of Group revenue November 12, 2015 - 12

  13. Slide 13: Financials – Net financial debt

    Financials – Net financial debt Further net financial debt reduction due to improved gross cash flow and rather low cash CAPEX spent EUR mn 13.7 239.6 1 449.5 14.0 26.7 14.2 0.4 333.3 41.6 13.7 8.5 46.4 2 Change in total working capital: EUR (27.9) mn 3 Net Financial Tax Net Interest Gross CF Cash C

  14. Slide 14: Financials – Cash flows

    Financials – Cash flows Strong improvement through cash and cost discipline EUR mn Operating cash flow +16.3% y-o-y Free cash flow +89.1% y-o-y Operating cash flow +52.6% y-o-y Free cash flow +90.4% y-o-y 185.0 159.1 85.3 140.9 67.2 55.9 74.5 35.3 Q3/2014 Q3/2015 9M/2014 9M/2015 Operating cash flow

  15. Slide 15: Outlook: Full Year 2015

    Outlook: Full Year 2015  Short term development Q4/2015  Geo-political and macro-economic situation remains volatile  The fiber processing companies face increasing difficulties to pass on the higher material costs in the cellulosic fiber value chain. To some extent, this could lead to the substi

  16. Slide 16: Q3/2015 – Financial information

    Q3/2015 – Financial information

  17. Slide 17: Q3/2015: Consolidated Group P&L

    Q3/2015: Consolidated Group P&L (EUR mn) Q3/2015 Q2/2015 Q3/2014 9M/2015 9M/2014 Revenue 503.4 480.9 457.7 1,458.9 1,357.7 Change in inventories of finished goods and work in progress (9.8) (1.9) 8.4 (15.9) 14.2 Work performed by the Group and capitalized 7.7 7.1 6.4 20.6 29.6 Other operating income

  18. Slide 18: Q3/2015: Topline breakdown

    Q3/2015: Topline breakdown Change Q3/Q2 Change Change (EUR mn) Q3/2015 Q2/2015 Q3/2014 (%) y-o-y (%) 9M/2015 9M/2014 y-o-y (%) Breakdown of Fibers segment revenue Textile fibers (%) 70.1 69.3 68.6 n.a. n.a. 68.9 67.8 n.a. Nonwoven fibers (%) 29.9 30.7 31.4 n.a. n.a. 31.1 32.2 n.a. Fibers only 446.7

  19. Slide 19: Q3/2015: Net financial debt

    Q3/2015: Net financial debt Further reduction EUR mn 7.5 87.01 401.5 14.0 23.3 18.62 333.3 2.8 0.0 0.4 0.1 0.5 Change in total working capital: EUR 20.5 mn 3 Net Financial Tax Net Interest Gross CF Cash Capex (incl. Change in Change in other Dividend Transaction from Currency Others Net Financial De

  20. Slide 20: Q3/2015: Cash flow by quarter

    Q3/2015: Cash flow by quarter Strong cash flows Change Change Q3/Q2 Change y-o-y (EUR mn) Q3/2015 Q2/2015 Q3/2014 (%) y-o-y (%) 9M/2015 9M/2014 (%) Gross CF (before taxes and interest) 87.01 94.81 71.3 (8.2) 21.9 239.61 157.5 52.2 Taxes and interest (21.5) (11.5) (4.0) 86.5 432.1 (27.7) (17.9) 54.6

  21. Slide 21: Total Opex structure

    Total Opex structure Q3/2014 9M/2014 (Total Opex EUR 413.1 mn) (Total Opex EUR 1,273.5 mn) 10.6% 11.9% 43.6 151.0 17.7% 17.7% 73.0 225.8 71.8% 70.4% 296.5 896.7 Q3/2015 9M/2015 (Total Opex EUR 419.5 mn) (Total Opex EUR 1,290.9 mn) 12.9% 13.5% 54.1 173.9 17.3% 17.3% 72.6 224.0 69.8% 69.2% 292.7 893.0

  22. Slide 22: Lenzing share information

    Lenzing share information ISIN LNZ / AT0000644505 Oberbank AG Bloomberg LNZ:AV 5.0% Reuters LNZNF.PK ATX Prime, ATX Global Players, Indices VÖNIX Sustainability Index Number of shares 26,550,000 mn Share price September 30, 2015 67.07 EUR Free float Market capitalization 27.4% 1,780.7 mn September 3

  23. Slide 23: Contacts and financial calendar

    Contacts and financial calendar  Investor Relations contact  Financial calendar  Stephanie Kniep Financial calendar 2015/2016 Head of Investor Relations Capital Markets Day November 17, 2015 Phone: +43 7672 701 4032 Full year results March 23, 2016 Fax: +43 7672 918 4032 71th Annual General Meeti

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