Lenzing Ag · VIE:LNZ
Lenzing — Q1 2022 Earnings Presentation
26 slides from Lenzing's earnings presentation, May 4, 2022
Slide 1: Lenzing Investor Presentation
Lenzing Investor Presentation Results 01-03/2022 May 4, 2022 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 Q1-2022 financial results Outlook and guidance 2022 ● Revenue of EUR 615 mn (EUR 489 mn in Q1-2021) ● Positive market environment remains characterized by high level ● EBITDA of EUR 88 mn (EUR 95 mn in Q1-2021) of uncertainty, high raw material and energy costs as well as supply chain di
Slide 4: Highlights
Highlights www.lenzing.com
Slide 5: Stephan Sielaff started as new CEO of Lenzing AG
Stephan Sielaff started as new CEO of Lenzing AG Composition of the Management Board of Lenzing AG as of April 1, 2022 Chief Executive Officer Chief Financial Officer Chief Commercial Officer Chief Pulp Officer Fiber Stephan Thomas Robert Christian Sielaff Obendrauf van de Kerkhof Skilich ● Stephan
Slide 6: Successful startup of Lenzing's new DWP mill in Brazil
Successful startup of Lenzing’s new DWP mill in Brazil fully on schedule and in budget New 500 kt DWP mill in Brazil ● 500 kt single line DWP mill - largest of its kind ● USD 1.38 bn industrial capex ● Absolute cost leader ● Long-term average DWP price: USD ~ 900/mt ● Successful startup - almost ful
Slide 7: Ramp-up phase of Lenzing's new 100 kt Lyocell plant
Ramp-up phase of Lenzing’s new 100 kt Lyocell plant successfully ongoing Lenzing’s new 100 kt Lyocell plant in Thailand ● Project delivered on schedule and at budget after two and a half years of construction despite challenges arising from a global pandemic ● New plant will help serve the growing d
Slide 8: Market update
Market update www.lenzing.com
Slide 9: Global textile demand on pre-pandemic level, drop in March mainly caused by Covid outbreak
Global textile demand on pre-pandemic level, drop in March mainly caused by Covid outbreak in China Monthly global apparel retail sales1 Percent of 2019 2022 YTD: FY 2020: -19 % FY 2021: -1 % +4 % 20 Large regional differences in demand development 10 0 -10 Demand partially decoupled from -20 high C
Slide 10: Cotton prices have risen to USD/kg ~3.65 and viscose is back above USD/kg 1.90
Cotton prices have risen to USD/kg ~3.65 and viscose is back to levels above USD/kg 1.90 Fiber prices in China USD/kg, excl. VAT Viscose Cotton Polyester Dissolving hardwood pulp 3.75 Viscose 3.50 • Prices are pushed by climbing pulp and processing costs 3.25 • Operating rates in Chinese VSF industr
Slide 11: Chinese viscose plants are still suffering losses caused by firm pulp prices and high processing costs
However, Chinese viscose plants are still suffering losses caused by firm pulp prices and high processing costs VSF1 price trend and theoretical profit / loss in China USD/ton VSF2 conversion margin RMB/ton RMB/ton (excl. VAT) (incl. VAT) 16’000 3’500 1,400 15’000 2’500 1,200 14’000 1’500 13’000 1,0
Slide 12: Lenzing specialties extend their lead over viscose
Lenzing specialties extend their lead over viscose Cellulosic fiber prices in China 6-months average, percent from January 2017, converted at constant FX rates 160 CC Index 150 140 130 120 Lenzing specialties1 110 100 90 VSF (TX) CCF high 80 70 60 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul
Slide 13: Financials
Financials www.lenzing.com
Slide 14: Group revenue reached EUR 615 mn
Group revenue reached EUR 615 mn Group revenue in EUR mn Fiber revenue by application, % Specialties share of fiber sales in Q1/2022 Standard Fibers 606 615 544 555 489 32% 31% 31% 29% 32% 27% 73% 68% 69% 69% 71% 68% Specialty Fibers1 1) LENZING™ Lyocell, LENZING™ Modal, Q1/2021 Q2/2021 Q3/2021 Q4/2
Slide 15: EBITDA back to close to EUR 90 mn
EBITDA back to close to EUR 90 mn Group net profit¹ after minorities and hybrid EBITDA in EUR mn EBIT in EUR mn bond, in EUR mn EPS1 in EUR 123 84 1.06 2.00 0.71 0.39 0.87 (23%) (15%) 95 53 88 55 (19%) 80 65 (14%) (11%) 44 (14%) 39 (11%) (7%) (7%) 28 22 23 (4%) 19 10 Q1/2021 Q2/2021 Q3/2021 Q4/2021
Slide 16: Gross cash flow at EUR 86 mn
Gross cash flow at EUR 86 mn EUR mn 111.5 115.1 EUR mn 108.0 101.6 84.3 88.3 86.3 86.0 79.7 70.9 430 444 413 381 387 47 397 19.4% 19.0% 19.3% 18.0% 16.0% Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 -99.0 -93.6 -102.9 -125.3 -127.6 Factoring Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Trading working capital
Slide 17: Liquidity cushion of EUR 1.5 bn
Liquidity cushion of EUR 1.5 bn Change EUR mn According to IFRS (EUR mn) 31 Mar 20225 31 Dec 20215 in % Total assets 5,620.4 5,322.8 5.6 1,096 Liquid assets3 1,121.9 1,124.1 (0.2) 977 Total liabilities 3,455.1 3,250.7 6.3 806 thereof financial liabilities 2,218.1 2,101.2 5.6 706 687 Adjusted equity4
Slide 18: Outlook
w.lenzing.com Outlook e | Lenzing Innovative by nature
Slide 19: Lenzing continues to expect EBITDA 2022 significantly above 2021 levels
Lenzing continues to expect EBITDA 2022 significantly above 2021 levels 2022 guidance: EBITDA significantly above 2021 levels ● Lenzing continues to expect an increase in demand for sustainably produced fibers for the textile and apparel industry as well as for the hygiene and medical industry ● Cos
Slide 20: Thank you for your attention!
for your attention! www.lenzing.com
Slide 21: Back-up
w.lenzing.com Back-up e | Lenzing Innovative by nature
Slide 22: Quarterly P&L development
Quarterly P&L development Change Change (EUR mn) Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q1/Q4 (%) Q1/2021 Q1/Q1 (%) Revenue 544.0 555.2 606.1 615.0 1.5 489.3 25.7 Cost of sales (389.7) (433.6) (500.7) (486.1) (2.9) (368.8) 31.8 Gross profit 154.3 121.6 105.5 128.9 22.3 120.6 6.9 Other operating income 24.5
Slide 23: Q1/2022: Topline breakdown
Q1/2022: Topline breakdown in EUR mn Q1/2022 Wood-based cellulosic fibers 513.5 Co-products of fiber production 14.8 Mechanical and plant engineering, engineering services and others 4.0 Division Fiber 532.2 Pulp 34.9 Biorefinery-products and energy 37.8 Wood and other 9.3 Division Pulp 82.1 Others
Slide 24: Quarterly cash flow development
Quarterly cash flow development Change Change Q1/Q1 (EUR mn) Q1/2022 Q4/2021 Q1/Q4 (%) Q1/2021 (%) Gross cash flow (before taxes and interest) 88.6 76.1 16.3 95.0 (6.8) Taxes and interest (2.6) (5.2) (51.2) (10.7) (76.0) Gross cash flow (after taxes and interest) 86.0 70.9 21.3 84.3 2.0 Change in to
Slide 25: Q1 2022: Net debt bridge
Q1 2022: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt FY Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q1 2021 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2022 977.0 Change in total 1,096.1 working capital EUR (8.
Slide 26: Contact and financial calendar
Contact and financial calendar Investor contact Financial calendar Sébastien Knus Annual results 2021 March 10, 2022 VP Capital Markets 78th Annual General Meeting April 26, 2022 Results 01-03/2022 May 4, 2022 Phone: +43 7672 701 3599 E-mail: s.knus@lenzing.com Half-year results 2022 August 3, 2022