Lenzing Ag · VIE:LNZ
Lenzing — Q1 2020 Earnings Presentation
25 slides from Lenzing's earnings presentation, May 6, 2020
Slide 1: Lenzing Investor Presentation
Lenzing Investor Presentation Results 01-03/2020 May 6, 2020 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: At a glance
At a glance 2020 guidance remains suspended Q1-2020 financial results ● Limited visibility due to Covid-19 pandemic ● Revenue of EUR 466mn (EUR 560mn in Q1-2019) ● Textile fiber demand recovery depending on ● Reflecting weak VSF price and softer textile demand duration of lockdown and exit strategie
Slide 4: Covid-19: taking care of our people, partners and operations
Covid-19: taking care of our people, partners and operations Protecting our people and business partners Measures taken to ensure business continuity ● Home office rolled out globally, except for ● Higher inventory levels for critical raw materials activities that require on-site presence. and produ
Slide 5: Covid-19: lockdowns weigh globally on textile retail sales
Covid-19: lockdowns weigh globally on textile retail sales North America Apparel Retail Traffic (% YOY) US Retail Sales Clothing & Accessories (% YOY) 20 10,0 10 0 0,0 -10 -20 -10,0 -30 -20,0 -40 -50 -30,0 -60 -70 -40,0 -80 -50,0 -90 -100 -60,0 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20
Slide 6: Covid-19: textile demand recovery difficult to forecast
Covid-19: textile demand recovery difficult to forecast Google search volumes for TENCEL™ Apparel retail sales forecast by region till Jan 2021 (% YOY) March April May June July Aug-Oct Nov-Jan 100 0% 80 -20% 60 -40% -60% 40 -80% 20 -100% 0 North America Europe APAC Oct-18 Jan-19 Apr-19 Jul-19 Oct-1
Slide 7: Covid-19: Surging demand for hygiene and care products
Covid-19: Surging demand for hygiene and care products European HPC sales growth (% YOY) US HPC volume growth – all channels (% YOY) 30% 70% 25% 60% 20% 50% 40% 15% 30% 10% 20% 5% 10% 0% 0% -5% -10% Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Jan-20 Feb-20 Feb-20 Feb-20 Mar-20 Source: Nielsen; HPC = H
Slide 8: Covid-19: Lenzing enters JV to produce safety masks
Covid-19: Lenzing enters JV to produce safety masks At a glance: ● Joint Venture: Hygiene Austria LP GmbH Lenzing (50.1%) and Palmers (49.9%) ● Rationale: Contribution to combat Covid-19 pandemic by ensuring long-term supply of high- quality critical goods ● Scope: Production and distribution of hig
Slide 9: Market update
Market update www.lenzing.com
Slide 10: Commodity prices remain under severe pressure
Commodity prices remain under severe pressure Viscose, cotton, polyester and pulp prices are around all time lows VSF1 price trend and theoretical profit / loss in China USD/kg RMB/ton RMB/ton 2,30 (incl. VAT) 2,10 14 000 0 1,90 13 000 -500 1,70 1,50 12 000 -1 000 1,30 11 000 1,10 -1 500 10 000 0,90
Slide 11: Specialty fiber prices remain comparatively resilient
Specialty fiber prices remain comparatively resilient 120 115 110 Lenzing Specialties1,2 105 (Include Lenzing specialty 100 viscose which is priced on “VSF plus“ basis) 95 90 Cotton Index1 85 80 75 70 65 VSF (TX) CCF high1 0 01/17 03/17 05/17 07/17 09/17 11/17 01/18 03/18 05/18 07/18 09/18 11/18 01/
Slide 12: Financials
Financials www.lenzing.com
Slide 13: P&L – Revenue
P&L – Revenue EUR mn Group revenue by type Fiber revenue by application (16.7) % Q1/2020 Q1/2020 16% 560 529 529 29% 28% 33% 487 466 23% 61% 71% 72% 67% Specialty fibers 1 Standard fibers Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q1/2019 Q4/2019 Q1/2020 Other business areas Group revenue Textile fiber
Slide 14: Q1/2020: Quarterly earnings development
Q1/2020: Quarterly earnings development EBITDA margin EBIT margin EPS1 (EUR) 16.4 % 16.9 % 16.2 % 12.3 % 14.9 % 9.7 % 9.7 % 9.0 % 1.8 % 6.5 % 1.65 1.32 1.45 0.21 0.84 EUR mn EUR mn EUR mn (24.3)% (44.2)% (58.6)% 92,0 89,2 85,7 54,4 51,2 69,6 47,9 60,0 42,8 34,0 36,1 30,4 17,7 8,8 2,0 Q1/2019 Q2/2019
Slide 15: Quarterly cash flow and working capital development
Quarterly cash flow and working capital development EUR mn EUR mn (56.7) % Operating CF 500,0 474 453 441 439 83,7 80,0 450,0 0,31 78,9 404 73,6 73,6 400,0 50,1 51,5 47,2 38,8 350,0 24,3% 0,26 31,9 22,4% 28,0 300,0 19,7% 20,8% 20,7% 0,8 0,21 250,0 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 (17.4) (10.7
Slide 16: Balance sheet metrics
Balance sheet metrics Change According to IFRS (EUR mn) 31 March 2020 31 Dec. 2019 in % Total assets 3,328.0 3,121.1 6.6 (1,133) Liquid assets1 572.0 581.0 (1.5) (982) thereof liquid funds 563.4 571.5 (1.4) Total liabilities 1,870 1,583.2 18.1 thereof financial liabilities 1,133.3 981.6 15.5 Adjuste
Slide 17: Outlook
w.lenzing.com Outlook e | Lenzing Innovative by nature
Slide 18: Outlook
Outlook 2020 guidance remains suspended Annual General Meeting rescheduled for ● Currently very limited visibility due to Covid-19 pandemic 18 June 2020 ● Recovery in textile fiber demand depending on consumer confidence and discretionary spending after shutdowns in western economies have been lifte
Slide 19: for your attention!
for your attention! www.lenzing.com
Slide 20: Appendix
Appendix Q1/2020 detailed financials www.lenzing.com
Slide 21: Q1/2020: Group P&L
Q1/2020: Group P&L Change Change (EUR mn) Q1/2020 Q4/2019 Q1/Q4 (%) Q1/2019 Q1/Q1 (%) Revenue 466.3 487.3 (4.3) 560.0 (16.7) Change in inventories of finished goods and work in progress 14.8 (3.2) - (5.6) - Own work capitalized 17.3 19.6 (11.6) 10.1 71.1 Other operating income 15.9 13.1 20.9 25.0 (3
Slide 22: Q1/2020: Topline breakdown
Q1/2020: Topline breakdown Change Change (EUR mn) Q1/2020 Q4/2019 Q1/Q4 (%) Q1/2019 Q1/Q1 (%) Breakdown of Fibers segment revenue Textile fibers (%) 66.9 71.8 (6.8) 70.9 (5.6) Nonwoven fibers (%) 33.1 28.2 17.4 29.1 13.7 Fibers only 389.5 416.1 (6.4) 464.1 (16.1) Other1 73.8 68.6 7.5 93.8 (21.4) Tot
Slide 23: Q1/2020: Cash flow development
Q1/2020: Cash flow development Change Change (EUR mn) Q1/2020 Q4/2019 Q1/Q4 (%) Q1/2019 Q1/Q1 (%) Gross cash flow (before taxes and interest) 52.6 66.4 (20.8) 99.6 (47.2) Taxes and interest (13.8) (14.9) (7.3) (15.9) (13.3) Gross cash flow (after taxes and interest) 38.8 51.5 (24.7) 83.7 (53.7) Chan
Slide 24: Q1/2020: Net debt bridge
Q1/2020: Net debt bridge Net Financial Cash Capex Change in Change Inflow from Net Financial Debt FY (incl. Fin. Trading in other the sale of Currency IFRS 16 Debt Q1 2019 Tax Net Interest Gross CF Ass.) WC WC Dividend subsidiaries Translation Leasing Others 2020 Change in total working capital EUR
Slide 25: Contact and financial calendar
Contact and financial calendar Investor contact Financial calendar Stephan Trubrich, CFA Full year results 2019 March 12, 2020 VP Capital Markets Results 01-03/2020 May 6, 2020 Half-year results 2020 August 5, 2020 Phone: +43 7672 701 3416 Results 01-09/2020 November 4, 2020 Fax: +43 7672 918 3416 E