Lenzing Ag · VIE:LNZ
Lenzing — Lenzing Ag Ord — Q3 2024 Earnings Presentation
25 slides from Lenzing's earnings presentation, Nov 7, 2024
Slide 1: Lenzing Investor Presentation Results 01-09/2024
Lenzing Investor Presentation Results 01-09/2024 November 7, 2024 www.lenzing.com
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: Revenue and profitability significantly improved
Revenue and profitability significantly improved Q3 2024 Q1–Q3 2024 vs. Q3 2023 vs. Q1–Q3 2023 Revenue EUR 647 mn EUR 1,958 mn YoY + 5% + 5% EBITDA EUR 99 mn EUR 264 mn YoY + 20% + 20% Margin 15% 13% FCF EUR 50 mn EUR 192 mn YoY + 85% + EUR 330 mn www.lenzing.com 6 November 2024 - 3
Slide 4: Continued focus on prices and cost excellence in still challenging market environment
Continued focus on prices and cost excellence in still challenging market environment Development of the relevant markets ● Demand in global apparel markets mostly flat Market Demand ● Nonwoven markets remain more robust Market Prices ● Slight increase of selected generic fiber prices ● Energy and c
Slide 5: Performance program with focus on enhancing margins, cost excellence and FCF generation
Performance program with focus on enhancing margins, cost excellence and FCF generation Lenzing’s holistic performance program launched in Q3 2023 1 2 3 1 Top-line growth with full focus on margin improvement Dedicated sales initiatives and strengthened sales organization & processes Enhanced cost e
Slide 6: Further shift towards premium fiber markets and increasing average sales price
Further shift towards premium fiber markets and increasing average sales price Focus on premium fiber market segments Lenzing fiber prices developed better than market Development of specialties1 share of fiber sales for Lenzing Development of fiber prices2 Q3 2024 vs. Q4 2023 +14 pp +6 pp 94% +8% 8
Slide 7: Cost savings of EUR > 100 mn targeted for 2025
Cost savings of EUR > 100 mn targeted for 2025, thereof > 50 % in 2024, well above target Cost Excellence Priorities Envisaged impact composition by bucket Full recurring target Illustrative starting 2025 Enhancement in governance and priority setting Initiated new workstreams with further potential
Slide 8: Revenue increase and lower costs led to 20% higher EBITDA
Revenue increase and lower costs led to 20 % higher EBITDA Group revenue EBITDA1,2 1 EBITDA margin in EUR mn in EUR mn in % of revenue Q3 2024 Q1–Q3 2024 Q3 2024 Q1–Q3 2024 +32 (+5%) +92 +45 647 (+5%) (+20%) 616 1,958 264 1,866 +17 219 (13%) (+20%) (12%) 99 83 (15%) (13%) Q3 2023 Q3 2024 Q1–Q3 2023
Slide 9: Trading working capital down by EUR 110 mn, FCF at EUR 191 mn
Trading working capital down by EUR 110 mn, FCF at EUR 191 mn Trading working capital¹ Free cash flow2 in EUR mn in EUR mn Q3 2024 Q3 2024 Q1–Q3 2024 90 -110 617 +85% 507 50 +330 25.1 19.6 192 27 Q3 2023 Q3 2024 Q3 2023 Q3 2024 -138 Trading working capital1 Trading working capital in % of annualized
Slide 10: Net debt down by EUR 217 mn, Liquidity cushion above EUR 1 bn
Net debt down by EUR 217 mn, Liquidity cushion above EUR 1 bn Net financial debt1,2 Liquidity cushion3 in EUR mn in EUR mn -217 +52 (-14%) (+5%) 1,574 1,043 991 1,357 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Net financial debt position further improved to EUR 1,357 mn Liquidity cushion increased due to posit
Slide 11: Refinancing of LDC leads to positive shift of debt maturities
Refinancing of LDC leads to positive shift of debt maturities Debt maturities1 as of 31.10.2024 in EUR mn 592 434 3102 231 244 190 200 14 0 2024 2025 2026 2027 2028 2029 2030 2031 2032 LDC converted project financing of USD 1 bn into standalone corporate finance structure (senior secured green notes
Slide 12: Continuing to take the future in our own hands
Continuing to take the future in our own hands Q1–Q3 2024 with improved operational performance compared to Q1–Q3 2023 Stable demand in pulp assumed and continuously cautious Lenzing confirms that outlook on generic fiber market development in Q4 2024 it expects EBITDA for the 2024 financial year En
Slide 13: Two capital market events in autumn 2024
Wir werden im Herbst 2024 zwei Kapitalmarktanlässe durchführen – einen für institutionelle Investoren und einen für Privatinvestoren Bitte wenden Sie sich bei Interesse an Lenzing Investor Relations www.lenzing.com 6 November 2024 - 13
Slide 14: Backup
Backup e | Lenzing Innovative by nature
Slide 15: Group revenue breakdown
Group revenue breakdown Fiber revenue by application, % Specialties share of fiber sales in Q1-Q3 2024 Standard Fibers 7.2% 64% 68% 64% 65% 64% 36% 32% 36% 35% 36% Specialty Fibers 1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 92.8% Textile Fibers Nonwoven Fibers 1) LENZING Lyocell, LENZING Modal, LENZI
Slide 16: EBIT increased by EUR 49 mn to EUR 38 mn in Q1-Q3 2024
EBIT increased by EUR 49 mn to EUR 38 mn in Q1-Q3 2024 EBIT in EUR mn, EBIT margin in % of revenue Group net profit1 in EUR mn Q3 2024 Q1-Q3 2024 Q3 2024 Q1-Q3 2024 +49 EPS in EUR 38 -0.97 -1.66 -4.90 -3.50 +18 (2%) -20 +13 19 (3%) 1 -149 -135 (0%) Q1-Q3 Q1-Q3 Q3 2023 Q3 2024 -44 2023 2024 -11 (-1%)
Slide 17: Quarterly P&L Development
Quarterly P&L Development Delta Q3 2024 - Delta % Q3 2024 - EUR mn Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2024 Q2 2024 Revenues 647.5 652.3 658.4 655.4 615.5 (4.8) (0.7%) Cost of Sales (509.9) (532.4) (555.7) (972.3) (561.0) 22.5 4.2% % of Revenue (78.7%) (81.6%) (84.4%) (148.3%) (91.1%) 2.9%pt
Slide 18: Top-Line Breakdown Q3 2024 vs Q3 2023
Top-Line Breakdown Q3 2024 vs Q3 2023 Delta Q3 Delta Q3% EUR mn Q3 2024 Q3 2023 YoY YoY Fiber 513.5 449.9 63.6 14.1% Wood-based cellulosic fibers 496.6 428.7 67.9 15.9% 1 Co-Products Fibers 15.9 15.7 0.2 1.4% Engineering, services and others 0.9 5.5 (4.6) (83.0%) Pulp 133.2 164.4 (31.2) (19.0%) P
Slide 19: Quarterly cash flow development
Quarterly cash flow development Change Change (EUR mn) Q3/2024 Q2/2024 Q3/Q2 (%) Q3/2023 Q3/Q3 (%) Gross cash flow (after taxes and interest) 52.3 52.4 (0.1) 54.5 (4.0) Change in total working capital1 31.8 29.8 6.8 35.8 (11.0) Operating cash flow 84.2 82.2 2.4 90.3 (6.8) Investment cash flow2 (33.8
Slide 20: Liquidity cushion at EUR 1.04 bn
Liquidity cushion at EUR 1.04 bn Net financial debt1,2, in EUR mn Balance sheet metrics 1,574 1,563 1,477 Change 1,428 According to IFRS (EUR mn) 30 Sep. 2024 31 Dec. 2023 in % 1,357 Total assets 5,139.9 5,214.6 (1.4) Liquid assets3 851.2 731.0 16.4 Total liabilities 3,572.5 3,472.4 2.9 thereof loan
Slide 21: Debt maturities prior to LDC refinancing
Debt maturities prior to LDC refinancing Debt maturities1 as of 30.09.2024 in EUR mn 530 3832 327 286 296 203 85 42 33 2024 2025 2026 2027 2028 2029 2030 2031 2032ff LDC converted project financing of USD 1 bn into standalone corporate finance structure (senior secured green notes of USD 650 mn and
Slide 22: Q3-2024: Net debt bridge
Q3-2024: Net debt bridge Net Cash Net Financial Capex3 Change Financial Debt Q2 Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q3 20241 Tax Interest Gross CF 2 Ass.) WC other WC Dividend Translation Leasing Increase Others 20241 5.7 1,357.3 -0.0 -2.5 0.0 -29.9 39.6 1,427.8 11.8 -
Slide 23: 01-09/2024: Net debt bridge
01-09/2024: Net debt bridge Net Cash Net Financial Capex3 Change Financial Debt FY Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q3 20231 Tax Interest Gross CF 2 Ass.) WC other WC Dividend Translation Leasing Increase Others 20241 1,357.3 -9.9 0.2 1.9 18.3 -34.9 -116.9 1,562.6 1
Slide 24: Contact and financial calendar
Contact and financial calendar Investor contact Financial calendar Sébastien Knus VP Investor Relations Annual results 2023 March 15, 2024 Phone: +43 7672 701 3599 E-mail: s.knus@lenzing.com 80th Annual General Meeting April 18, 2024 Visit our IR website and our SRI sites https://www.lenzing.com/inv
Slide 25: Only through this trifold approach can we achieve innovative solutions
Only through this trifold approach can we achieve innovative solutions on the scale the world needs. Are you ready to join? Find out more at reports.lenzing.com. www.lenzing.com 25