Lenzing Ag · VIE:LNZ
Lenzing — FY2024 Earnings Presentation
30 slides from Lenzing's earnings presentation, Mar 14, 2025
Slide 1: Investor Presentation Full-year results 2024
Investor Presentation Full-year results 2024| March 14, 2025 www.lenzing.com 1
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, profitability and FCF significantly improved
Revenue, profitability Disclaimer and FCF significantly improved 2024 vs. 2023 Revenue EUR 2,664 mn YoY + 6% EBITDA EUR 395 mn YoY + 30% Margin 15% FCF EUR 167 mn YoY + 290 mn www.lenzing.com 3
Slide 4: Focus remains on prices and cost excellence in a challenging market environment
Focus remains on prices and cost excellence in a continuously challenging market environment Development of the relevant markets in 2024 A ● Demand in global apparel markets mostly flat Market Demand ● Nonwoven markets remain more robust B ● Slight increase of selected generic fiber prices compared
Slide 5: Global apparel demand flat, uncertainty remains high, nonwovens markets more stable
A Global apparel demand flat, uncertainty remains high, nonwovens markets more stable FY 2024 YoY Textile Markets Nonwovens Markets FY 2024 apparel retail sales1 breakdown by region in %, FY 2024 vs. FY 2023, inflation-adjusted United States Key challenges and influencing Key influencing factors FY
Slide 6: Generic viscose prices with weak first half year and slight correction in the second
B Generic viscose prices with weak first half year and slight correction in the second half Fiber and DWP market prices in China, 2023 – 2024, USD/kg (excl. VAT) 1.8 Viscose 1.7 1.6 Generic viscose prices slightly improved year on year due to a 1.5 largely balanced supply-demand situation and firm f
Slide 7: Energy and NaOH market prices remain elevated versus pre-crisis
C Energy and NaOH market prices remain elevated versus pre- crisis with mostly increasing tendencies in fourth quarter Comparison of selected energy and NaOH1 market price levels Development Q4 2024 vs. Q3 2024 Change in Percentage 2024 vs. 2020 (averages) Energy NaOH +267% +72% +62% +68% +23% Coal
Slide 8: Performance program with focus on 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 9: Further shift towards premium fiber markets and increasing fiber sales volumes
1 Further shift towards premium fiber markets and increasing fiber sales volumes Focus on premium fiber market segments Development of fiber sales volumes for Lenzing Development of specialties1 share of fiber sales for Lenzing In thousand tons +14 pp +16% 93% 962 79% 832 2023 2024 2023 2024 Premium
Slide 10: Cost savings of EUR > 130 mn in 2024
2 Cost savings of EUR > 130 mn in 2024 Cost Excellence Priorities Envisaged impact composition by bucket Full recurring target, EUR mn Illustrative starting 2025 Enhancement in governance and priority setting Initiated new workstreams with further potentials Reinforcement of measures to streamline >
Slide 11: EBITDA increased by 30% due to higher revenue and lower costs
EBITDA increased by 30% due to higher revenue and lower costs Group revenue EBITDA1 EBITDA margin in EUR mn in EUR mn in % of revenue Q4 2024 FY 2024 Q4 2024 2024 +143 +92 +50 (+6%) (+30%) (+8%) +48 395 2,664 706 2,521 (+56%) (15%) 655 132 303 (19%) (12%) 84 (13%) Q4 2023 Q4 2024 2023 2024 Q4 2023 Q
Slide 12: Trading working capital slightly up, FCF increased by EUR 290 mn
Trading working capital slightly up in line with revenue, FCF increased by EUR 290 mn Trading working capital¹ Free cash flow2 in EUR mn in EUR mn 2024 Q4 2024 2024 +5% +290 -40 551 578 15 167 21.0 20.5 2023 2024 -25 -123 Q4 2023 Q4 2024 2023 2024 Trading working capital1 Trading working capital in
Slide 13: Leverage down to below 4.0x, Liquidity cushion at EUR 650 mn
Leverage down to below 4.0x, Liquidity cushion at EUR 650 mn Net financial debt1,2 Liquidity cushion4 in EUR mn in EUR mn Leverage3 -284 (-30%) -30 934 (-2%) -1.3 1,563 1,533 5.2 650 3.9 2023 2024 2023 2024 2023 2024 Net financial debt position improved to EUR 1,533 mn Liquidity cushion reduced due
Slide 14: Refinancing of LDC leads to positive shift of debt maturities
Refinancing of LDC leads to positive shift of debt maturities, financing considerations ongoing Debt maturities1 as of 31.12.2024 in EUR mn 626 432 229 239 188 198 14 0 2025 2026 2027 2028 2029 2030 2031 2032 LDC converted project financing of USD 1 bn into standalone corporate finance structure wit
Slide 15: Innovation and sustainability are Lenzing's DNA
Innovation and sustainability are Lenzing’s DNA Selected innovation and branding highlights in 2024 The “Glacial Threads: From Forests TENCEL Refreshes Brand Lenzing’s VEOCEL builds awareness in combating to Future Textiles” Identity plastic pollution highlighted at UN’s SEA of Solutions 2024 Specia
Slide 16: Continuing to take the future in our own hands
Continuing to take the future in our own hands 2024 with improved operational performance compared to 2023 Stable demand in pulp assumed and continuously cautious Lenzing expects outlook on generic fiber market development in 2025 EBITDA for the 2025 Energy and raw material costs assumed to remain o
Slide 17: Thank you for your attention!
Thank you for your attention! www.lenzing.com 17
Slide 18: Backup
Backup www.lenzing.com 18
Slide 19: Group revenue breakdown
Group revenue breakdown Fiber revenue by application, % Specialties share of fiber sales in 2024 Q4 2024 32% 36% 35% 36% 32% Specialty Fibers1 93% 68% 64% 65% 64% 68% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Textile fibers Nonwoven fibers FY 2024 31% 35% 35% 35% 7% 38% Standard Fibers 62% 69% 65% 65%
Slide 20: Topline breakdown 2024 vs 2023
Topline breakdown 2024 vs 2023 Delta % EUR mn Q4-c 2024 Q4-c 2023 Delta YoY YoY Fiber 2 033.0 1 841.0 192.0 10.4% Wood-based cellulosic fibers 1 965.3 1 753.5 211.8 12.1% Co-Products Fibers 1 63.4 61.1 2.3 3.7% Engineering, services and others 4.3 26.4 (22.1) (83.5%) Pulp 627.6 676.1 (48.6) (7.2%) P
Slide 21: Group P&L
Group P&L Delta % EUR mn Q4-c 2024 Q4-c 2023 Delta YoY YoY Revenues 2 663.9 2 521.2 142.7 5.7% Cost of Sales (2 155.8) (2 597.6) 441.8 17.0% % of Revenue (80.9%) (103.0%) 22.1%pt Gross Profit 508.1 (76.5) 584.5 > +100,0% % of Revenue 19.1% (3.0%) 22.1%pt Selling Expenses (300.5) (274.9) (25.6) (9.3%
Slide 22: Quarterly P&L development
Quarterly P&L development Delta Q4 2024 - Delta % Q4 2024 - EUR mn Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2024 Q3 2024 Revenues 705.7 647.5 652.3 658.4 655.4 58.2 9.0% Cost of Sales (557.8) (509.9) (532.4) (555.7) (972.3) (47.9) (9.4%) % of Revenue (79.0%) (78.7%) (81.6%) (84.4%) (148.3%) (0.3%p
Slide 23: EBIT and net profit/loss
EBIT and net profit/loss EBIT Group net profit after minorities and hybrid bond in EUR mn in EUR mn Q4 2024 FY 2024 Q4 2024 2024 +565 +516 89 +493 50 +479 -22 -157 -501 -466 -476 Q4 2023 Q4 2024 -649 Q4 2023 Q4 2024 2023 2024 2023 2024 www.lenzing.com 23
Slide 24: Division EBITDA 2024 vs. 2023
Division EBITDA 2024 vs. 2023 EBITDA per Division in EUR mn 2024 2023 436 462 303 395 -60 -74 33 Fiber Pulp Other1) Group -99 Fiber Pulp Other1) Group 1) Incl. consolidation www.lenzing.com 24
Slide 25: Quarterly cash flow development
Quarterly cash flow development Change Change Q4/Q4 Change (EUR mn) Q4/2024 Q3/2024 Q4/Q3 (%) Q4/2023 (%) 01-12/2024 01-12/2023 y-o-y (%) Gross cash flow (after taxes and interest) 41.7 52.3 (20.4) 53.3 (21.8) 140.4 88.5 58.7 Change in total working capital1 (6.1) 31.8 - 45.9 - 182.1 71.8 >+ 100 Ope
Slide 26: Balance sheet structure and return on capital employed
Balance sheet structure and return on capital employed Balance sheet positions, in EUR mn Capital employed, in EUR mn EUR 4,977 mn 3,748 3,542 3,459 1,652.0 Equity 2,767 3,202.5 2,216 PP&E1 5.4% 3.6% 2.0% -0.5% 2,108.0 Financial liabilities -14.2% 646.2 2020 2021 2022 2023 2024 Inventories 318.2 386
Slide 27: 2024: Net debt bridge
2024: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt FY Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt FY 2023 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2024 1,562.6 Change in total 1,532.5 working capital EUR 185.
Slide 28: Q4 2024: Net debt bridge
Q4 2024: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt Q3 Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q4 2024 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2024 1,357.3 Change in total 1,532.5 working capital EUR (
Slide 29: Contact and financial calendar
Contact and financial calendar Investor contact Financial calendar Sébastien Knus VP Investor Relations Annual results 2024 March 14, 2025 Phone: +43 7672 701 3599 E-mail: s.knus@lenzing.com 81st Annual General Meeting April 17, 2025 Visit our IR website and our SRI sites https://www.lenzing.com/inv
Slide 30: Thank you!
Thank you! www.lenzing.com 30