Lenzing Ag · VIE:LNZ
Lenzing — H1 2018 Earnings Presentation
76 slides from Lenzing's earnings presentation, Aug 8, 2018
Slide 1: Lenzing Investor Presentation
Lenzing Investor Presentation Results 01-06/2018 August 8, 2018 www.lenzing.com 08.08.2018 - 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: Highlights H1/2018
Highlights H1/2018 ● Lenzing with a solid first half year in a more demanding market environment ● Group revenue down 6.4% to EUR 1,075.4 mn compared to H1/2017 ● EBITDA down 28.1% to EUR 194.8 mn ● Strong balance sheet with adjusted equity ratio at 59.0% and low net financial debt of EUR 144.2 mn ●
Slide 4: Interfiber price development
Interfiber price development1 Staple fiber prices in RMB/to – Development in China RMB/to RMB/to (incl. VAT) (incl. VAT) 18,000 10,000 17,000 9,500 16,000 9,000 15,000 8,500 14,000 8,000 13,000 7,500 12,000 7,000 11,000 6,500 10,000 6,000 01/2015 07/2015 01/2016 07/2016 01/2017 07/2017 01/2018 8 07/
Slide 5: Cotton market
Cotton market Cotton market ● Q2/2018: Price hike up to 102 cents/lb in mn tons 30 26.6 26.2 27.4 June due to increased demand coupled 25 23.1 24.5 25.9 with fear of tight supply (rising futures) 20 18.8 19.3 Production 17.8 15 ● Cotlook A-Index price projection 2017/18: Consumption 10 Ending Stocks
Slide 6: Chinese viscose staple fiber market
Chinese viscose staple fiber market ● After a drop in April to 13,850 RMB, standard VSF prices bounced up to 14,930 RMB in VSF1 price trend and inventory of China yuan/MT June boosted by day 18,000 30 ● Higher cotton prices 17,000 ● Postponed start-up of new VSF capacities 16,000 20 ● Utilization ra
Slide 7: Brazil – perfect for a lowest cost DWP mill worldwide
Brazil – perfect for a lowest cost DWP mill worldwide ● Very favorable wood economics, strong local talent pool and excellent supplier network ● Brazil has a lot of experience in pulp projects ● Since year 2000, ~50% of new pulp capacity was built in Brazil Brazil ● Duratex – strong JV partner ● Lea
Slide 8: Key facts about the DWP greenfield project
Key facts about the DWP greenfield project ● Lenzing and Duratex S.A. to investigate a greenfield DWP plant in Brazil ● Lenzing to hold 51% and Duratex 49% ● FSC® certified wood supply ● Key facts of project under investigation ● 450 kt/a capacity → largest single line DWP plant ● Kraft pulp technol
Slide 9: Lenzing specialty fibers – in line with sCore TEN
Lenzing specialty fibers – in line with sCore TEN ● Specialty ratio 44.1 % of revenue in H1/2018. Rising demand also due to specific marketing and business development activities ● LENZING™ ECOVERO™: Progress ahead of expectations ● Nanjing, China, established as 2nd production hub (after Lenzing si
Slide 10: Successful launch of new branding concept
Successful launch of new branding concept For Textile B2C Specialties For Non-Woven B2C Specialties For Industrial B2B www.lenzing.com 08.08.2018 - 10
Slide 11: Successful launch of TENCEL™ in textiles
Succesful launch of TENCEL™ in textiles TENCEL™ Denim TENCEL™ Intimate TENCEL™ Active TENCEL™ TENCEL™ Home Luxe Feel good with Feel ready with Feel your best with a touch of softness a touch of comfort Feel relaxed with Feel the touch of a touch of smoothness a natural touch conscious luxury www.len
Slide 12: Followed by the launch in nonwovens…
Followed by the launch in nonwovens… VEOCEL™ VEOCEL™ VEOCEL™ VEOCEL™ Beauty Body Intimate Surface gentle care, reliable care, natural care, effective care, purely for you purely for you purely for you purely for you www.lenzing.com 08.08.2018 - 12
Slide 13: …and the launch in the industrial segment
…and the launch in the industrial segment LENZING™ LENZING™ LENZING™ LENZING™ LENZING™ LENZING™ for for for for for for Bio- Agriculture Packaging Protective Workwear Engineered refinery Wear Products products www.lenzing.com 08.08.2018 - 13
Slide 14: sCore TEN investment program
sCore TEN investment program ● Debottlenecking of pulp and specialty fibers ● Heiligenkreuz line three start-up completed ● Pulp debottlenecking according to plan ● Lyocell brownfield project of 90 kt in Mobile/USA ● First major EPC/EPCM project within the Lenzing Group ● Lyocell greenfield expansio
Slide 15: Financials – Revenue
Financials – Revenue EUR mn Revenue split H1/2018 (6.7)% (6.4)% 1,149.1 577.5 1,075.4 15.0% 562.9 550.3 44.1% 532.8 525.0 40.9% Specialty fibers 1 Standard fibers Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 01-06/2017 01-06/2018 Other business areas Group revenue Group revenue 1) LENZINGTM Lyocell, LENZ
Slide 16: Financials – EBITDA
Financials – EBITDA EBITDA margin EBITDA margin 24.1% 21.9% 19.8% 18.5% 17.7% 23.6% 18.1% EUR mn EUR mn (31.3)% (28.1)% 270.7 135.6 126.4 105.3 101.6 194.8 93.2 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 H1/2017 H1/2018 EBITDA EBITDA www.lenzing.com 08.08.2018 - 16
Slide 17: Financials – EBIT
Financials – EBIT EBIT margin EBIT margin 18.1% 16.3% 13.6% 12.5% 11.4% 17.8% 12.0% EUR mn EUR mn (41.2)% (37.0)% 101.8 94.2 204.2 72.6 68.9 59.8 128.7 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 H1/2017 H1/2018 EBIT EBIT www.lenzing.com 08.08.2018 - 17
Slide 18: Financials – Net profit and earnings per share
Financials – Net profit and earnings per share1 EPS1 (EUR) EPS1 (EUR) 2.80 2.57 2.35 1.89 1.55 5.55 3.44 EUR mn EUR mn (45.2)% (39.3)% 75.3 150.3 69.0 62.4 91.3 50.0 41.2 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 H1/2017 H1/2018 Group net profit 1 Group net profit 1 1) Attributable to Lenzing AG share
Slide 19: Financials – Key figures
Financials – Key figures 900 800 Change EUR mn According to IFRS (EUR mn) 30 June 2018 31 Dec. 2017 in % 700 Total assets 2,524.2 2,497.3 1.1 Liquid assets1 263.8 315.8 (16.5) 600 thereof liquid funds 241.4 306.5 (21.2) (511) 521 500 Total liabilities 1,054.6 989.4 6.6 (408) thereof financial liabil
Slide 20: Cash flow development and trading working capital
Cash flow development and trading working capital (37.7)% Gross CF EUR mn 5.4% Trading Working Capital (incl. factoring) (48.4)% Operating CF EUR mn 450 30.0% Free CF adj. 0 0 400 0 18 46 350 384 414 421 407 25.0% 353 105.2 108.6 300 95.1 98.2 93.4 20.0% 85.1 250 19.4% 18.5% 20.0% 65.6 200 17.7%
Slide 21: Outlook: Challenging environment to continue
Outlook: Challenging environment to continue ● Macro industry indicators positive 2018e: 600 – 900 kt viscose net capacity additions expected to come on stream1 ● Good market demand for wood-based cellulose fibers ● Strong cotton market 6.3 – 6.6 ● Increasing awareness of sustainability 5.4 5.7 ● Co
Slide 22: Outlook 2018 – Fiber market and Lenzing Group
Outlook 2018 – Fiber market and Lenzing Group The International Monetary Fund expects a further acceleration in global economic growth to 3.9 percent for 2018. However, growing protectionist tendencies in the political arena represent a source of uncertainty. Export- oriented companies in the Eurozo
Slide 23: Q2/2018 Financial information
Q2/2018 Financial information www.lenzing.com 08.08.2018 - 23
Slide 24: Q2/2018: Consolidated Group P&L
Q2/2018: Consolidated Group P&L (EUR mn) Q2/2018 Q1/2018 Q2/2017 H1/2018 H1/2017 Revenue 525.0 550.3 562.9 1,075.4 1,149.1 Change in inventories of finished goods and work in progress 17.8 (15.0) 20.4 2.8 (1.0) Own work capitalized 13.0 15.1 10.5 28.2 19.8 Other operating income 16.7 12.8 14.1 29.5
Slide 25: Q2/2018: Topline breakdown
Q2/2018: Topline breakdown Change Change Change (EUR mn) Q2/2018 Q1/2018 Q2/Q1 (%) Q2/2017 Q2/Q2 (%) H1/2018 H1/2017 H1/H1 (%) Breakdown of Fibers segment revenue Textile fibers (%) 70.3 70.4 (0.1) 69.2 1.6 70.4 70.4 0.0 Nonwoven fibers (%) 29.7 29.6 0.3 30.8 (3.6) 29.6 29.6 0.0 Fibers only 458.5 45
Slide 26: Q2/2018 Total opex structure
Q2/2018 Total opex structure Q2/2018 (Total Opex EUR 479.4 mn) H1/2018 (Total Opex EUR 941.0 mn) 66.8 128.9 13.9% 13.7% 186.0 95.0 19.8% 626.1 19.8% 66.5% 317.6 66.2% Q2/2017 (Total Opex EUR 472.2 mn) H1/2017 (Total Opex EUR 923.9 mn) 64.8 13.7% 131.7 14.3% 319.2 88.3 67.6% 18.7% 173.8 18.8% 618.4 6
Slide 27: Q2/2018: Net debt bridge
Q2/2018: Net debt bridge Change in total working capital EUR (8.2) mn3 93.31 59.02 11.6 9.4 144.2 1.1 25.6 132.8 2.0 0.1 1.2 0.4 Net liquidity Tax Net interest Gross CF Cash capex Change in Change in Dividend Inflow from Currency Others Net financial Q1/2018 (incl. fin. ass.) other WC trading WC the
Slide 28: H1/2018: Net debt bridge
H1/2018: Net debt bridge Change in total working capital EUR 20.1 mn3 118.52 6.5 13.6 66.8 39.1 2.5 192.31 132.9 0.1 0.0 3.0 144.2 Net financial Tax Net interest Gross CF Cash capex Change in Change in Dividend Inflow from Currency Others Net financial debt FY 2017 (incl. fin. ass.) other WC trading
Slide 29: Q2/2018: Cash flow
Q2/2018: Cash flow Change Change Change (EUR mn) Q2/2018 Q1/2018 Q2/Q1 (%) Q2/2017 Q2/Q2 (%) H1/2018 H1/2017 H1/H1 (%) Gross cash flow (before taxes and interest) 93.3 99.1 (5.9) 134.1 (30.5) 192.3 266.7 (27.9) Taxes and interest (27.7) (14.0) 97.8 (28.9) (4.2) (41.6) (39.6) 5.2 Gross cash flow (aft
Slide 30: FY 2017 Back-up financial information
FY 2017 Back-up financial information www.lenzing.com 08.08.2018 - 30
Slide 31: FY 2017: Consolidated Group P&L
FY 2017: Consolidated Group P&L (EUR mn) 2017 2016 Change y-o-y (%) Revenue 2,259.4 2,134.1 5.9 Change in inventories of finished goods and work in progress 16.8 6.4 160.5 Own work capitalized 46.1 21.8 111.1 Other operating income 49.9 45.5 9.6 Cost of material and purchased services (1,258.0) (1,2
Slide 32: FY 2017: Consolidated Group P&L - Quarters
FY 2017: Consolidated Group P&L - Quarters Change Change (EUR mn) Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q4/Q3 (%) Q4/2016 Q4/Q4 (%) Revenue 586.2 562.9 577.5 532.8 (7.8) 555.7 (4.1) Change in inventories of finished goods and work in progress (21.4) 20.4 (2.5) 20.3 - 18.2 11.2 Own work capitalized 9.3 10.
Slide 33: FY 2017: Topline breakdown
FY 2017: Topline breakdown Change Change Q4/Q3 Q4/Q4 Change (EUR mn) Q1/2017 Q2/2017 Q3/2017 Q4/2017 (%) Q4/2016 (%) 2017 2016 y-o-y (%) Breakdown of Fibers segment revenue Textile fibers (%) 71.5 69.2 70.2 69.0 (1.6) 71.0 (2.8) 70.0 70.9 (1.3) Nonwoven fibers (%) 28.5 30.8 29.8 31.0 3.9 29.0 6.8 30
Slide 34: Financials 2017 – Earnings per quarter
Financials 2017 – Earnings per quarter EBITDA margin EBIT margin EPS1 (EUR) 19.4% 23.0% 24.1% 21.9% 19.8% 13.4% 17.5% 18.1% 16.3% 13.6% 2.50 2.75 2.80 2.57 2.35 EUR mn EUR mn EUR mn (2.2)% (2.7)% (6.9)% 135.1 135.6 126.4 102.3 101.8 75.0 75.3 94.2 107.7 105.3 69.0 67.0 74.6 72.6 62.4 Q4/2016 Q1/2017
Slide 35: Financials – Earnings
Financials – Earnings EBITDA margin EBIT margin EPS1,2 (EUR) 11.8% 12.9% 14.7% 20.1% 22.2% 4.5% 1.2% 7.6% 13.9% 16.4% 1.89 (0.92) 4.78 8.48 10.47 EUR mn EUR mn EUR mn +17.3% +25.2% +23.0% 371 282 502 428 296 229 290 240 128 225 151 86 50 22 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014
Slide 36: FY 2017: OPEX as of total sales
FY 2017: OPEX as of total sales Change Change Q4/Q3 Q4/Q4 Change (EUR mn) Q1/2017 Q2/2017 Q3/2017 Q4/2017 (%) Q4/2016 (%) 2017 2016 y-o-y (%) Total sales 586.2 562.9 577.5 532.8 (7.8) 555.7 (4.1) 2,259.4 2,134.1 5.9 Total OPEX1 (451.7) (472.2) (473.1) (472.7) (0.1) (481.6) (1.9) (1,869.7) (1,779.6)
Slide 37: FY 2017: Solid balance sheet, strong ROCE
FY 2017: Solid balance sheet, strong ROCE as at Dec. 31, 2017 3,000.0 ∑ EUR 2,497.3 mn ∑ EUR 2,497.3 mn Change According to IFRS (EUR mn) 31 Dec. 2017 31 Dec. 2016 in % 2,500.0 Total assets 2,497.3 2,625.3 (4.9) Liquid assets1 315.8 570.4 (44.6) 2,000.0 thereof liquid funds 306.5 559.6 (45.2) Total
Slide 38: FY 2017 Total opex structure
FY 2017 Total opex structure 2016 (Total Opex EUR 1,779.6 mn) 2017 (Total Opex EUR 1,869.7 mn) 236.6 262.4 13.3% 14.0% 319.2 349.4 17.9% 18.7% 1,258.0 1,223.8 67.3% 68.8% Cost of material and purchased services Cost of material and purchased services Personnel expenses Personnel expenses Other opera
Slide 39: FY 2017: Net debt bridge
FY 2017: Net debt bridge EUR mn Change in total working capital EUR (148.5) mn3 245.3 2 76.7 7.2 71.8 66.8 80.6 111.7 3.1 1.8 26.1 12.5 511.8 1 Net financial Tax Net interest Gross CF Cash capex Change in Change in Dividend Inflow from Currency Others Net financial debt FY 2016 (incl. fin. ass.) oth
Slide 40: Financials 2017 – Key figures (1/2)
Financials 2017 – Key figures (1/2) EUR mn EUR mn 900 (801) 800 (730) 1,650 49.7% (683) 700 1,605 (577) 1,596 600 570 1,600 1,579 39.7% 505 1,572 500 450 1,550 1,541 29.7% (383) 400 355 316 296 300 280 1,500 19.7% 328 200 8.1% 18.6% 1,450 3.7% 15.1% 9.7% 100 67 (0.1%) 7 0 1,400 -0.3% 2013 2014 2015
Slide 41: Financials 2017 – Key figures (2/2)
Financials 2017 – Key figures (2/2) 1,800 130.0% 120.0% 1,600 EUR mn 1,528 EUR 110.0% 1,390 5.50 1.50 1,400 100.0% 5.00 1,219 1.30 90.0% 4.20 1,200 1,110 4.50 1,055 80.0% 1.10 1,000 61.2% 70.0% 3.50 1.20 2.00 53.0% 0.90 50.6% 60.0% 800 3.00 3.00 50.0% 2.50 2.00 0.70 600 1.75 40.0% 3.7% 45.5% 44.7% 4
Slide 42: FY 2017: Cash flow by quarters
FY 2017: Cash flow by quarters Change Change Change Q4/Q3 Q4/Q4 y-o-y (EUR mn) Q1/2017 Q2/2017 Q3/2017 Q4/2017 (%) Q4/2016 (%) 2017 2016 (%) Gross cash flow (before taxes and interest) 132.5 134.1 130.4 114.8 (12.1) 124.8 (8.1) 511.8 445.4 14.9 Taxes and interest (10.7) (28.9) (32.1) (21.4) (33.7) (
Slide 43: Cash flow development and trading working capital
Cash flow development and trading working capital +8.5% Gross CF (42.7)% Operating CF +9.2% (91.1)% Free CF adj. 600 40.0% EUR mn EUR mn 500 82 35.0% 473 78 0 0 83 419 400 447 30.0% 414 386 394 396 380 366 25.6% 300 25.0% 284 271 23.4% 20.8% 231 200 219 216 21.6% 19.4% 20.0% 21.3% 19.5% 145 19.4% 11
Slide 44: Appendix Equity story
Appendix Equity story www.lenzing.com 08.08.2018 - 44
Slide 45: Lenzing – Our mission
Lenzing – Our mission “Lenzing is a performance materials company that turns CO2 and sunlight into highly functional, emotional and aesthetic products across the globe” Textiles Nonwovens www.lenzing.com 08.08.2018 - 45
Slide 46: Global fiber market at a glance
Global fiber market at a glance 2017e consumption numbers ● Lyocell 6.1% Wood-based ● Modal cellulose fibers2 ● Viscose 24.7% Cotton 106 mn tons 63.8% Synthetic fibers 1.1% Wool 4.3% Other natural fibers1 1) Incl. bast, flax, hemp, jute, silk and allied fibers 2) Wood-based and cotton linter-based c
Slide 47: Lenzing – Market leader in all three fiber generations
Lenzing – Market leader in all three fiber generations Competitive Fiber Types Market Position Intensity Lyocell #1 Low Modal #1 Medium Viscose #2 High Source: Lenzing data 2017, CCFG, CCFEI www.lenzing.com 08.08.2018 - 47
Slide 48: Lenzing is the only player with European roots in viscose staple fibers
Lenzing is the only player with European roots in the viscose staple fibers market1 (2017e) … Lenzing with 17% share of production Lenzing with 16% share of capacities2 Others Lenzing Others Lenzing 18% 17% 21% 16% Xiangsheng 5% Xiangsheng 5.3 mn tons 4% 6.2 6.2mn mntons tons Birla Aoyang Birla 16%
Slide 49: … and is a global leader in wood-based cellulose fibers
… and is a global leader in wood-based cellulose fibers Balanced exposure to matured and Global network of production sites and emerging markets sales offices Fiber revenue by region 2017 footprint AMEA (Asia, Middle North Asia East and Africa) 38% 35% Europe & Americas 27% Source: Lenzing data as a
Slide 50: Capacity 2018: A global footprint
Capacity 20181: A global footprint Europe2 China Total pulp capacity 457 493 570 575 181 209 178 178 270 275 111 119 165 165 2017 2018e 300 300 2017 2018e 2017 2018e Lenzing (A) Paskov (CZ) USA Total capacity Indonesia dissolving dissolving pulp capacity pulp capacity 1,009 1,048 232 263 51 54 111 1
Slide 51: Textile and Nonwovens are the two main applications
Textile and Nonwovens are the two main applications Textile Nonwovens Size ~90 mt ~10 mt Regional Over 90% of spinning and fabric making Mainly a regional market (due to high logistic costs) focus located in China, India and Asia-Pacific High Low: Top 5 to 10 players hold between 60-80% share Fragme
Slide 52: Long-term interfiber price development
Long-term interfiber price development1 Staple fiber prices – Development in China RMB/to (incl. VAT) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 01/10 07/10 01/11 07/11 01/12 07/12 01/13 07/13 01/14 07/14 01/15 07/15 01/16 07/16 01/17 07/17 01/18 07/18 Viscose Cotton Polyester 1) Price develo
Slide 53: Sales and marketing – Customer concentration
Sales and marketing – Customer concentration Textiles Percent of sales by customers Nonwovens Percent of sales by customers (20171) (20171) 61.2% 47.5% 44.5% 30 % 35% 21 % Top 5 Top 10 Top 20 Top 5 Top 10 Top 20 Source: Lenzing data 2017 www.lenzing.com 08.08.2018 - 53
Slide 54: Lenzing underpins its innovation leadership
Lenzing underpins its innovation leadership Industry leading R&D spend (EUR 55.41 mn in 2017) ● R&D is an essential part of the sCore TEN strategy and contributes to R&D expenses (2014-2017)1 all five fields EUR mn ● Substantial progress with respect to strategic innovations and thus looking at a he
Slide 55: LENZING™ ECOVERO™
LENZING™ ECOVERO™ The new standard in eco-responsible viscose 30 ● LENZING™ ECOVERO™ fibers are the innovative 25 and unique answer to the increasing demand MSI score, points/kg fiber for sustainable products along the textile 20 value chain Fossil resource depletion 15 ● Worldwide highest environme
Slide 56: Lyocell fibers with REFIBRA™ technology
Lyocell fibers with REFIBRA™ technology Contribution to circular economy ● Solves waste problems in the society and saves resources by replacement of virgin cotton fibers ● Environmentally responsible closed loop process ● High resource efficiency and low ecological impact ● Solvent-spinning process
Slide 57: Looking forward: Megatrends support fiber demand growth
Looking forward: Megatrends support fiber demand growth Population growth and higher purchasing power in the emerging markets drive overall fiber growth World CAGR 2010-2020 6.9 7.8 Population 6.1 +1.1% bn 12.2 GDP per capita 9.7 (current prices) 5.7 +2.4% ths. USD/capita 14.8 Fiber consumption 11.9
Slide 58: Wood-based fibers outgrow market
Wood-based fibers1 outgrow market Expected growth of global fiber demand until 2020 Million metric tons 120 CAGR 110 Wood-based fibers (2015e – 2020p2) 100 Synthetic Cotton 90 Other Wood-based 5-6% p.a. 80 fibers1 70 60 Synthetic fibers 3-4% p.a. 50 40 30 Cotton 1-2% p.a. 20 10 Total fiber market 3-
Slide 59: Asia Pacific remains the growth engine in global textiles
Asia Pacific remains the growth engine in global textiles Global apparel demand by value1 (2005-2020) CAGR (2015-2020e) USD bn 1,517 1,306 38% Asia Pacific 4% 988 36% 23% 22% North America 2% 22% 26% 26% Europe 27% 2% 39% 14% 14% ROW 12% 3% 2005 2015 2020e 1) Based on current prices and historic yea
Slide 60: Sustainability is gaining importance
Sustainability is gaining importance Less than 1% of global water Arable land is decreasing due to Oil is a finite resource causing resources is available as fresh erosion and urbanization negative externalities water for people ● With a growing global population, ● Sooner or later “peak oil” will b
Slide 61: Lenzing's sustainability strategy
Lenzing’s sustainability strategy “Lenzing balances the needs of society, the environment and shareholders and is a sustainability leader in its industry. Creating substantially more positive impacts or benefits is the guiding torch for our innovation and business practices.” ● Four focus areas ● Wo
Slide 62: Certificates and recognitions
Certificates and recognitions ● VÖNIX (Austrian Sustainability Index) ● 100% USDA Biobased certification for all Lenzing fibers (LENZINGTM FR at 99%) ● The European Eco-Label (European Flower) ● OK compost HOME (TÜV AUSTRIA BELGIUM) ● Responsible Care® ● OK biodegradable SOIL (TÜV AUSTRIA BELGIUM) ●
Slide 63: Responsible wood and pulp sourcing
Responsible wood and pulp sourcing ● Lenzing has a strict wood and pulp sourcing policy in place ● Lenzing does not source any wood or dissolving wood pulp from ancient and endangered forests as well as high conservation value areas. ● Lenzing is committed to sourcing wood and dissolving wood pulp e
Slide 64: Wood and pulp certifications in the Lenzing Group
Wood and pulp certifications in the Lenzing Group Certification status of total wood and pulp used by Lenzing production sites, own and purchased pulp 2017 Basis: Pulp used by Lenzing for fiber production Non-certified pulp was used for R&D purposes www.lenzing.com 08.08.2018 - 64
Slide 65: Highly efficient use of the raw materials
Highly efficient use of the raw materials The Lenzing site is fully integrated. Dissolving wood pulp production at the Lenzing and Paskov sites achieve a wood utilization rate of about 100% (incl. energy use). www.lenzing.com 08.08.2018 - 65
Slide 66: Fiber production fully secured by a robust pulp supply
Fiber production fully secured by a robust pulp supply Level of backward integration: Own pulp supply in percentage of annual fiber capacity ● >50% secured by own pulp production ● Remaining pulp is secured Total annual through long-term contracts fiber capacity (100%) 58% 56% 56% 56% 56% 2013 2014
Slide 67: DWP market is relatively concentrated with significant link to paper pulp market
DWP market is relatively concentrated with significant link to paper pulp market DP for WBCF supply, 2017, mt Capacity distribution, 2017, % Forecasted capacity, mt Merchant thereof swing capacity (PP/DWP) Integrated 2 8 7 ~80% Birla 1 6 Sappi 6 Lenzing 10% 21% 10% 5% Sun Paper Sateri 15% 4% 4% Rayo
Slide 68: The strategy – driving value growth
The strategy – driving value growth www.lenzing.com 08.08.2018 - 68
Slide 69: Strengthen the Core
Strengthen the Core ● Further strengthen pulp position via backward integration and/or strategic co- operations 1 ● Maintain quality leadership ● Deliver EUR 50 mn EBITDA by 2017 with commercial and operational excellence program ● Strengthen our co-products business ● Grow viscose position via stra
Slide 70: Customer Intimacy, Specialization, Forward Solutions and New Business Areas
Customer Intimacy, Specialization, Forward Solutions and New Business Areas Increase management presence and decision power in the regions Move selectively forward 4 in the value chain via new Establish two additional game-changing 2 regional application and technologies customer innovation centers
Slide 71: Backup
Backup www.lenzing.com 08.08.2018 - 71
Slide 72: LENZING™ fibers field of application
LENZING™ fibers field of application Textile Active Home Denim Luxe Intimate www.lenzing.com 08.08.2018 - 72
Slide 73: LENZING™ fibers field of application
LENZING™ fibers field of application Nonwovens Body Surface Beauty Intimate www.lenzing.com 08.08.2018 - 73
Slide 74: LENZING™ fibers field of application
LENZING™ fibers field of application Industrial Packaging Biorefinery Products Workwear Agriculture Footwear Protective Wear Engineered Products www.lenzing.com 08.08.2018 - 74
Slide 75: Lenzing share information
Lenzing share information Oberbank AG 3.97% ISIN LNZ / AT0000644505 Bloomberg LNZ:AV Reuters LNZNF.PK ATX Prime, ATX Global Players, Indices VÖNIX Sustainability Index B&C Privatstiftung Number of shares 26,550,000 50.00% Share price June 29, 2018 EUR 103.40 Free float 46.03% Market capitalization E
Slide 76: Contacts and financial calendar
Contacts and financial calendar Investor Relations contact Financial calendar ● Stephanie Kniep Full year results 2017 March 14, 2018 Head of Investor Relations 74th Annual General Meeting April 12, 2018 Corporate Communications & Investor Relations Results 01-03/2018 May 8, 2018 ● Phone: +43 7672 7