Lenzing Ag · VIE:LNZ
Lenzing — FY2012 Earnings Presentation
76 slides from Lenzing's earnings presentation, Mar 22, 2013
Slide 1: Leading Fiber Innovation
Leading Fiber Innovation LENZING INVESTOR PRESENTATION – FULL YEAR RESULTS March 22, 2013
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: Key highlights FY 2012
Key highlights FY 2012 Second best year in company history 2012 2011 Change in % Delivering half-year guidance Sales volume 810 k tons 712 k tons 13.8 All time high sales volume of 810,000 Average fiber price 1.96 per kg 2.22 per kg (11.7) tons Sales 2,090 mn 2,140 mn (2.3) Decline of cotton p
Slide 4: Key highlights Q4/2012
Key highlights Q4/2012 As expected Record sales volume of 220.5 k tons Average fiber price further decreased by 6% to EUR 1.83 per kg (Q3: EUR 1.95 per kg) Cotton price relatively flat at 82.1cents/lbs Chinese VSF-Spot price reached low at 13.820 RMB (December 31, 2012) Specialties prices
Slide 5: Market environment 2012
Market environment 2012 China: Is the worst over? China’s GDP growth/VSF Spot China First recovery in Q4 after seven consecutive quarters of decrease in % growth over growth last years RMB/to 8.1 7.9 20000 No positive impulse on VSF1 prices 8 7.6 7.4 18000 in Q4 7 16000 16,802 6 15,850 15,636 15
Slide 6: Fiber market environment 2012
Fiber market environment 2012 MMCF1 with new production record while total fiber market increased only by 1.2% after a year of strong growth2 Fiber production growth +1.2% 80 70 60 +4.1% 50 mn tons 40 81.0 82.0 76.2 -4.8% 30 47.9 49.9 45.3 20 +6.8%3 25.4 27.3 26.0 10 0.0% 1.1 1.1 1.1 4.4 4.7 5.0 0 W
Slide 7: Competitive Environment 2012
Competitive Environment 2012 Cutting production and projects Price decline led to cuts in production and capacity utilization rates estimated at 65% – 70% on average with Chinese competition Majority of Chinese competitors estimated to have made losses in 2012 Cancellation of various announced
Slide 8: Looking ahead into 2013
Looking ahead into 2013 Key market assumptions Economic outlook No solution of the issues in Europe (sovereign debt) and the US (fiscal cliff) Only moderate recovery of China’s GDP growth rate Cotton: China’s huge stock causes uncertainty for fiber prices Best case: China uses cotton stock
Slide 9: TENCEL drives sales in 2012
TENCEL® drives sales in 2012 Increase in Nonwovens Sales by segments 2012 Sales by fiber type (%) (EUR mn) 1800 2.2% 1500 TENCEL® +12.8% 293.9 331.5 Engineering 1200 7.6% 266.9 232.6 Plastics 0.1% others 900 Lenzing -12.9% 600 1,020.4 1,020.7 Modal® 300 Lenzing +0.0% 0 Viscose® 2011 2012 Sales by se
Slide 10: 2012: Solid volume growth
2012: Solid volume growth Textile segment sales more affected by price volatility Textile fibers1 Nonwoven fibers1 External Sales (EUR mn) External Sales (EUR mn) 800 2.04 2,4 2.29 700 1.79 1.83 1.95 2.01 1300 17.4% -12.2% 14.0% -10.3% 1,9 600 1,5 500 1,4 800 400 1,150 +12.8% 0,9 1,160 +5.9% 0,5 300
Slide 11: 2012: Textile fibers
2012: Textile fibers Viscose and Modal back to 2010 levels, TENCEL® with some way to go Lenzing Viscose®1 TENCEL 300 ®1 4,50 4,00 250 800 2,8 3,50 2.71 2.82 700 2.00 2,3 200 3,00 1.78 1.72 4.1% 600 2.10 2,50 12.4% -14.0% 1,8 29.0% 500 150 2,00 400 1,3 100 1,50 300 0,8 1,00 200 327 343 396 50 0,3 76
Slide 12: 2012: Nonwoven fibers
2012: Nonwoven fibers TENCEL® significantly below Textile Lenzing Viscose®1 350 2,60 Lenzing Viscose®: Nonwoven in line 1.99 300 1.74 1.73 2,10 with Textile over a longer period of time 14.4% -13.1% 250 1,60 200 1,10 TENCEL® Nonwoven behind Textile – 150 100 197 0,60 with less need for adjustmen
Slide 13: Relative pricing
Relative pricing Continued higher TENCEL® premium than Modal Modal: Premium over viscose in the historic 40-50% range TENCEL® premium came down but is still looking high on a historical perspective Textile fibers Relative price (viscose = 100%) (%) FY 2010 FY 2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012
Slide 14: Capacity expansion to 2014 – 1 mn tons
Capacity expansion to 2014 – 1 mn tons What we have in the pipeline today Europe1 China CAGR 6.1% CAGR 22.1% 444 350 355 357 369 172 90 103 105 105 178 178 140 160 75 103 103 103 111 80 185 149 149 161 161 2010 2011 2012 2013e 2014e 2010 2011 2012 2013e 2014e USA CAGR 5.7% 40 50 50 50 40 100 Total c
Slide 15: excelLENZ program
excelLENZ program Adjusting speed due to the low visibility market environment 3 dimensional program started with 3 goals TOP LINE Top line – optimize product mix / increase volumes Capex – re-evaluate projects, which have not been started / scrutinize maintenance capex Costs – save opex / r
Slide 16: 2012: A solid base
2012: A solid base 1x net debt/EBITDA, high equity and healthy liquidity 900 875 Net debt to EBITDA: 1.0x 800 700 653 Adjusted equity of EUR 1,153 mn 613 600 43.8% equity ratio 529 500 500 471 441 Net gearing of 30.0% 400 365 Total liquidity cushion of 306 346 300 EUR 740 mn consisting of
Slide 17: Outlook: Full Year 2013
Outlook: Full Year 2013 A year of transition Reduction of sales by further EUR 50 mn Sales approx. EUR 2.15 – 2.25 bn due to complete switch from external to internal sales in Czech pulp mill EBITDA approx. EUR 260 – 290 mn EBITDA margin of approximately 12% – 13% EBIT approx. EUR 140 – 170 mn E
Slide 18: Outlook Q1/2013
Outlook Q1/2013 Almost a mirror image of Q4/2012 No sales volume increase over Q4/2012 Sales volume approx. on Q4/12 level Chinese New Year effect EBITDA approx. EUR 60 mn Maintenance shut downs and “short February” Average fiber price approx. EUR 1.75 – 1.80 per kg EBITDA with below Q4/2012
Slide 19: Q4/2012 – Financial information
Q4/2012 – Financial information
Slide 20: 2012: Sales volume on record level
2012: Sales volume on record level Sales volume increase of 14.0% to 810 k tons while average price decreased by 12.0% compared to 2011 2,90 600 2.29 2.32 2.13 2.15 2,40 1.3% 500 -8.2% 2.03 2.04 0.9% -5.6% 1.95 0.5% -4.4% 1.83 -6.2% 1,90 400 1,40 300 405 406 0,90 200 399 396 382 387 389 403 100 199
Slide 21: Textile and nonwoven fibers
Textile and nonwoven fibers Q4 with sales record in a difficult environment Textile fibers1 Nonwoven fibers1 2.10 2.39 2.42 2.05 2.02 2.18 2.20 2.11 2.12 2.01 1.3% 2.4% -3.8% -9.9% 2.00 400 1.3% -4.1% 0.5% 1.84 -0.5% -5.7% 1.84 1.84 -8.0% -9.0% 1.83 1.80 300 0.5% 0.0% -2.2% 200 293 291 273 304 282 2
Slide 22: Textile fibers
Textile fibers Very strong volumes but at low prices in Q4/2012 Lenzing Viscose® TENCEL® 200 2.25 2.16 2,50 180 60 4,00 -4.0% 1.80 1.82 1.79 2.93 2.96 3.11 160 -16.7% 1.76 1.74 2,00 50 2.79 2.83 3,50 1.59 2.67 140 1.1% -3.3% 1.7% -2.8% 2.45 1.0% 5.1% -9.0% 2.45 3,00 -8.6% 5.0% 120 40 1,50 9.0% 4.5%
Slide 23: Nonwoven fibers
Nonwoven fibers 2012 with new sales record Lenzing Viscose®: Nonwoven above textile and a stabilizing factor Increase in TENCEL® volume driven by expansion in USA in H2/2012 Lenzing Viscose® TENCEL® 80 2.06 2,50 2.02 70 1.93 1.93 2.0% -6.3% 1.73 1.75 1.73 1.70 2,00 2.41 60 0.0% -10.0% 2.35 2.38
Slide 24: Q4: Broadly as expected
Q4: Broadly as expected Record sales volume, EBITDA slightly better than expected Change (EUR mn) Q4/20122 Q3/2012 Q4/Q3 (%) Q2/2012 Q1/2012 Sales volume man-made cellulose fibers (kt) 221 199 10.6 199 191 Total external sales 522.9 505.7 3.4 533.6 528.2 Inventory change/work in progress (6.6) 11.6
Slide 25: Topline breakdown
Topline breakdown Strong Q4 mainly due to increased textile fiber sales Change (EUR mn) Q4/2012 Q3/2012 Q4/Q3 (%) Q2/2012 Q1/2012 Breakdown of fibers segment sales Textile fibers 292.4 276.0 6.0 299.5 281.7 Nonwoven fibers 110.4 113.3 (2.5) 106.6 104.9 Others1 12.5 12.4 0.8 12.2 12.3 Total fibers on
Slide 26: Q4: Increase of costs due to record sales volume
Q4: Increase of costs due to record sales volume Relative increase of Key Chemicals Costs Change (EUR mn) Q4/2012 Q3/2012 Q4/Q3 (%) Q2/2012 Q1/2012 Dissolving pulp1 134.1 134.4 (0.2) 129.6 131.6 as % of total cost of material and purchased services 39.8 41.7 - 39.7 41.3 Key chemicals 48.8 45.9 6.3 4
Slide 27: Q4: Total Remaining Opex
Q4: Total Remaining Opex Representing approx. 30% of total Opex and fairly stable Change (EUR mn) Q4/2012 Q3/2012 Q4/Q3 (%) Q2/2012 Q1/2012 Total personnel expenses 75.5 80.6 (6.3) 76.3 75.4 as % of external sales 14.4 15.9 - 14.3 14.3 Other operating expenses Freight outward 21.2 18.9 12.2 20.5 18.
Slide 28: Cash flow by quarter
Cash flow by quarter Change (EUR mn) Q4/2012 Q3/2012 Q4/Q3 (%) Q2/2012 Q1/2012 Gross CF 49.5 83.2 (40.5) 36.0 79.2 Change in total working capital1 15.9 (30.9) - (29.7) 6.2 Operating Cash flow 65.4 52.3 25.2 6.3 85.4 Investment Cash flow2 (131.5) (83.3) 57.9 (71.0) (22.6) Free Cash flow (66.1) (31.0
Slide 29: FY 2012 – Financial information
FY 2012 – Financial information
Slide 30: 2012: Relative pricing
2012: Relative pricing TENCEL® premium on a very high level in the textile segment Textile fibers Relative price (viscose = 100%) (%) 2010 2011 2012 Lenzing Viscose® 100 100 100 Lenzing Modal® (incl. FR) 144 154 148 TENCEL® 118 136 164 Nonwoven fibers Relative price (viscose = 100%) (%) 2010 2011 20
Slide 31: Impact of EPG wind-up on 2012 P&L
Impact of EPG wind-up on 2012 P&L Summary of restructuring effects (EUR mn) before EPG after EPG Difference EBITDA 358.7 352.4 6.3 EBIT 255.0 231.5 23.5 EBT 246.4 236.0 10.4 Net profit (before minorities) 191.9 180.9 11.0 Net profit (after minorities) 186.6 175.6 11.0 31
Slide 32: Consolidated Group P&L
Consolidated Group P&L1 (EUR mn) 2012 2011 Total external sales 2,090.4 2.140.0 Cost of material and purchased services (1,303.2) (1,275.7) Personnel (307.8) (287.1) EBITDA 358.7 480.3 Margin (%) 17.2 22.4 Depreciation & Amortization (107.3) (120.6) Other operating expenses (228.6) (204.6) Other ope
Slide 33: Material cost: Pulp decreases, Key Chemicals increase
Material cost: Pulp decreases, Key Chemicals increase (EUR mn) 2012 2011 Change in % Dissolving wood pulp1 529.7 564.9 (6.2) as % of total cost of material and purchased services 40.7 44.3 - Key chemicals 181.1 139.1 30.2 as % of total cost of material and purchased services 13.8 11.0 - Energy 146.9
Slide 34: Remaining Opex: Freight and Other growing over-proportionally
Remaining Opex: Freight and Other growing over-proportionally Representing approx. 29% of total Opex on a full year basis (EUR mn) 2012 2011 Change in % Total personnel expenses 307.8 287.1 7.2 as % of external sales 14.7 13.4 - Other operating expenses Freight outward 79.0 67.8 16.6 Commissions and
Slide 35: Balance sheet as of December 31, 2012
Balance sheet as of December 31, 2012 ∑ 2,632.7 EUR mn ∑ 2,340.5 EUR mn ∑ 2,632.7 EUR mn ∑ 2,340.5 EUR mn 3000 3000 2500 2500 2000 1,275.2 2000 1,130.7 (48.4%) (42.9%) 1,091.7 1,023.7 (46.6%) (43.7%) 1500 1500 299.6 (11.4%) 284.6 (12.2%) 837.6 1000 1000 611.1 264.5 (10.0%) (31.8%) (26.1%) 236.8 (10.
Slide 36: Full year Cash flow
Full year Cash flow (EUR mn) 2012 2011 Change in % Gross CF 248.0 435.3 (43.0) Change in total working capital1 (38.6) (125.6) (69.3) Operating Cash flow 209.4 309.7 (32.4) Investment Cash flow2 (308.4) (216.2) 42.7 Free Cash flow (98.9) 93.5 42.7 1) including trade and other working capital 2) incl
Slide 37: Appendix – Company information
Appendix – Company information
Slide 38: Global fiber market at a glance
Global fiber market at a glance 2012 estimated production numbers Wool Natural Fibers 1.3% & Natural Polymers Cotton 31.7% 82.0 mn tons man-made Synthetic fibers cellulose fibers Viscose/Rayon 60.9% MMC fibers Modal 6.1% TENCEL®/Lyocell Source: Lenzing estimates 38
Slide 39: Lenzing at a glance
Lenzing at a glance Global market leader in a growth market Growth opportunity through 3 mega-trends leading to the cellulose gap Global market leader in producing man-made cellulosic fibers (MMCF) 22% market share (of world wide production) Innovation, technology and quality leader Cost l
Slide 40: Growth opportunity: cellulose Gap
Growth opportunity: cellulose Gap MMCF: Strong demand and limitations on cotton supply Megatrends Input factor Supply trend Cellulosic fibers Population Arable land 1. Growth Cotton CAGR*) ‘11 – ’20: Water 1.1%1 Fiber Prosperity Consumption Man-made Cellulose 2. CAGR*) ‘11 – ’20: Cellulosic
Slide 41: Cellulose Gap: A growth opportunity
Cellulose Gap: A growth opportunity Limited potential to increase cotton supply increases demand for MMC fibers Cotton planted area expected to remain Limited growth in cotton production: stable within narrow band (1960-2012) effects from yield expansion leveling out Million hectares Million metric
Slide 42: Cellulose Gap: A growth opportunity
Cellulose Gap: A growth opportunity 9% p.a. forecast for MMCF over current decade The demand gap of cellulosic fibers opening due to limited cotton supply can best be filled by MMC fibers as substitute Fiber market growth by type of fiber (1960-2020e) % % CAGR 2000 2005 2010 2011 2012e 2015e 2020e
Slide 43: Mega-trend: Sustainability
Mega-trend: Sustainability Green footprint: Significantly more environmentally friendly than cotton More than 50% of Lenzing’s fuel consumption sourced from renewable resources Lenzing Group environmental impact of production relative to cotton only approx. 5.7% Required acreage for production o
Slide 44: Global market leader in VSF
Global market leader in VSF1 Lenzing with 22% share of production2 Lenzing with 18% share of capacities3 Lenzing Lenzing 22% 18% Others Others 31% 37% Fulida 10% 3.66 mn tons Fulida 4.98 mn tons 9% Thai Rayon4 Grasim4 4% 7% Sateri Grasim4 3% Thai Rayon4 Aoyang 9% 3% 6% Indo Sateri Indo Helon Tangsha
Slide 45: Only true global player
Only true global player Sales by region1 RoW Americas 2% 7% Europe incl. Turkey 32% Asia 59% Source: Company information 1) fiber sales by volume in metric tons FY 2012 45
Slide 46: Innovation drives specialties
Technology leadership secures leading market shares Market Position % of and Market Share Unique Selling Proposition Key End Markets Fiber Sales in 20121 20122 # 1 – Quantum leap ...the new age fiber High-end technology consumer Environmentally friendly process applications Breathable, next to
Slide 47: Lenzing is the innovation leader
Lenzing is the innovation leader Industry leading R&D spend (EUR 28.3 mn in 2012) R&D expenses (2000-2012) Intellectual property 30 3 As of December 2012, Lenzing owned approx. 1,380 patent applications and 25 2,5 patents in 57 countries belonging to 226 patent families 20 2 All significant pate
Slide 48: Innovation
Innovation R&D organization and unique innovation model Organization structure Unique innovation model Integration into business units Breakthrough innovation Close collaboration with sales & marketing to develop Focus: Leap technologies (e.g. Lenzing applications for customers Modal®, TENCEL®
Slide 49: Lenzing is the cost leader
Lenzing is the cost leader Through pulp integration and long-term pulp supply contract Pulp is the key cost driver with 40% share of total costs of material and purchased services 90+% of long-term pulp supply secured through own production (vertical integration) and long-term supply contracts
Slide 50: Cost leadership
Cost leadership Through economies of scale Lenzing is the only company to operate production lines with an annual capacity of 80,000 metric tons Biggest MMC fiber plants worldwide1 Benefits from scale Company Site Production 10-15% lower Capex requirements compared to Lenzing, 260k to smaller pl
Slide 51: High barriers to entry
High barriers to entry Global branded supplier to blue chip customer base Knitting & Dyeing & Spinning Yarn Garment Making Retail Weaving Finishing Fabric Manufacturer Blue Chip Customers – Textiles Push Pull Trusted, long-term partner for global consumer brands Global integrated marketing and s
Slide 52: Double-digit growth profile
Double-digit growth profile Lenzing has managed growth successfully in the past Double-digit growth p.a. over last 12 years Fiber production Total external sales1 EBITDA1,2 EBIT1,2 (1,000‘s metric tons) (EUR mn) (EUR mn) (EUR mn) 779 2,090 800 400 300 2000 359 255 700 600 300 CAGR 1500 200 500 7.3
Slide 53: Expansion program
Expansion program Significant investments envisaged to support growth strategy Planned Planned Capacity – Capacity – capacity – capacity – YE 2011 YE 2012 YE 2013 YE 2014 Plant location (metric tons) (metric tons) (metric tons) (metric tons) Lenzing / Austria 252,000 252,000 264,000 339,000 Lenzing
Slide 54: Capacity by site 2012 - 2013
Capacity by site 2012 - 2013 Capacity Capacity Capacity Capacity Capacity Capacity Capacity Capacity per March per June per September per December per March per June per September per December (metric tons) 31, 2012 30, 2012 30, 2012 31, 2012 31, 2013 30, 2013 30, 2013 31, 2013 Lenzing 260,000 260,0
Slide 55: Capacity by site 2014
Capacity by site 2014 Capacity per March Capacity per Capacity per Capacity per (metric tons) 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 Lenzing 264,000 331,000 331,000 339,000 Indonesia 325,000 325,000 325,000 330,000 Nanjing 178,000 178,000 178,000 178,000 India - - - - Heiligenkr
Slide 56: Our production sites
Our production sites Lenzing AG – PT. South Pacific Viscose – Austria (fiber and pulp) Indonesia 56
Slide 57: Our production sites
Our production sites Lenzing (Nanjing) Fibers Co. Ltd. – Heiligenkreuz – China Austria 57
Slide 58: Our production sites
Our production sites Grimsby – Mobile – Great Britain USA Biocel Paskov a.s. – Czech Republic (pulp) 58
Slide 59: Where our fibers end up
Where our fibers end up Ladies wear – close to skin Cowl neck tee Lightly padded bra top maxi dress USD 39.50 USD 79.50 TENCEL® / Spandex Ecosil® Lenzing Modal® / Spandex 59
Slide 60: Where our fibers end up
Where our fibers end up Sequined knit cardigan Denim shirt Nixon USD 88.00 EUR 39.95 58% Viscose / 42% TENCEL® 100% TENCEL® 60
Slide 61: Where our fibers end up
Where our fibers end up Soft denim – can be sold in retail with a high premium Vintage flare jeans Five pocket skinny jeans USD 98.00 USD 240.00 100% TENCEL® Lenzing Modal® / TENCEL® / Cotton / Elastane 61
Slide 62: Where our fibers end up
Where our fibers end up The super skinny legging The legging ankle- graphic USD 215.00 floral tobasco 45% TENCEL® / 55% Cotton / USD 225.00 3% Polyurethane 42% TENCEL® / 55% Cotton / 3% Polyurethane 62
Slide 63: Where our fibers end up
Where our fibers end up USD 33.00 (tank top), Armani collezioni sportcoat USD 38.00 (V-neck) USD 645.00 MicroModal® / Spandex TENCEL® 63
Slide 64: Where our fibers end up
Where our fibers end up USA‘s leading baby wipe – TENCEL® inside 64
Slide 65: Lenzing Management Board team and shareholder structure
Lenzing Management Board team and shareholder structure Peter Untersperger/CEO Friedrich Weninger/COO Thomas G. Winkler/CFO Lenzing AG shareholder structure Oberbank AG 5.0% Overview of B & C Privatstiftung 67.6% owner of Lenzing is B & C Privatstiftung (B & C Private Foundation). Its purpose is t
Slide 66: Sales and marketing
Sales and marketing Customer concentration Textiles % of sales by customers Nonwoven % of sales by customers (2012) (2012) 50% 70% 60% 40% 34.5% 49.1% 50% 30% 40% 23.2% 34.0% 20% 30% 22.9% 14.4% 20% 10% 10% 0% 0% Top 5 Top 10 Top 20 Top 5 Top 10 Top 20 Source: LAG 66
Slide 67: Blue chip companies drive demand in specialties
Sales and marketing Blue chip company’s drive demand in specialties – TENCEL®, Lenzing Modal® Lenzing is a trusted, long-term partner for global consumer brands Approx. 45% of textile and approx. 60% of nonwoven sales for specialty fibers (TENCEL®, Lenzing Modal®) can be attributed to key accoun
Slide 68: Back-up
QLENZING
Slide 69: 2012/13: The perfect storm?
2012/13: The perfect storm? Short term pain, long term gain for Lenzing Market Macro Cotton stock/use ratio >65% Debt crisis in Europe (and USA) Cotton price 80 – 85 cents/Ib China: availability of capital is restricting factor Competitor Cost Postponing pulp (up to 700 kto) and Pulp pri
Slide 70: Chinese economic development
70 6,0 8,0 10,0 12,0 14,0 16,0 June 1994 April 1995 (year-on-year in %) February 1996 GDP growth December 1996 October 1997 GDP 2012e 7.7% August 1998 June 1999 No V-shaped recovery April 2000 February 2001 December 2001 Source: Deutsche Bank; Asia Data Flash, January 18, 2013; February 8, 2013 Oc
Slide 71: Viscose fiber industry cost curve
Viscose fiber industry cost curve Lenzing placed in an excellent position* Index 100 = Lenzing** Other Chinese competitors 140 135 130 125 120 Other Asian competitors 115 Chinese competitor No. 2 110 105 Lenzing** 100 Chinese competitor No. 1 95 90 * Based on publicly available information (Sales mi
Slide 72: DWP industry – cash cost curve
DWP industry – cash cost curve* A lot of new capacity added on the right side of the curve Cost Competitiveness1 USD/ton 1200 mA rea 1000 Proble Canada III 800 China Scandinavia Canada II ea tive Ar Attrac 600 Paskov Canada I South Africa Brazil Lenzing 400 Sumatra 200 0 * Cash cost (excl. freight,
Slide 73: Fiber market environment
Fiber market environment Highest-stock-to-use-ratio ever at approx. 73% World cotton production of 26.3 mn tons, consumption of 23.3 mn tons and ending stocks of 17.0 mn tons Massive increase of Chinese national cotton reserve of estimated 8 mn tons (around 50% of world inventories) USc/lb 80 18
Slide 74: Viscose spot prices China trending down since September
Viscose spot prices China trending down since September Stock-to-use-ratio on a high level > 65% VSF spot China and cotton price development in 2012 (in cents/Ibs) 120,00 115,00 110,00 105,00 100,00 95,00 90,00 85,00 80,00 75,00 70,00 Q1/2012 Q2/2012 Q3/2012 Q4/2012 65,00 60,00 03.01.2012 14.01.2012
Slide 75: Lenzing Viscose textile prices compared to cotton price development
Lenzing Viscose® textile prices compared to cotton price development Re-establishment of premium1 to cotton in 2012 Even with a 20% reduction in cotton prices and an inventory level of 70% , there was no return to historic cotton prices of < 70 cents/Ibs in 2012 EUR/kg 3,5 3 2,5 19.1% 5.4% 8.3% 3.
Slide 76: Contacts and financial calendar
Contacts and financial calendar Investor Relations contact Financial calendar Financial calendar 2013 Stephanie Kniep Full year results March 22, 2013 Head of Investor Relations 69th Annual General Meeting April 24, 2013 Results 1st quarter May 8, 2013 Phone: +43 7672 701 4032 Half year result