Lenzing Ag · VIE:LNZ
Lenzing — FY2021 Earnings Presentation
37 slides from Lenzing's earnings presentation, Mar 10, 2022
Slide 1: Lenzing Investor Presentation Full Year Results 2021
Lenzing Investor Presentation Full Year Results 2021 March 10, 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: Recent events
Recent events Stephan Sielaff appointed as new Chief Executive Officer of Lenzing AG – changes in the Managing Board and the Supervisory Board ● Stephan Sielaff replaces interim CEO Cord Prinzhorn ● Chief Financial Officer Thomas Obendrauf will not extend his contract ● Chairman of the Supervisory B
Slide 4: At a glance
At a glance 2021 financial results Outlook and guidance 2022 ● Revenue of EUR 2,195 mn (EUR 1,633 mn in 2020) ● Positive market environment remains characterized by high ● EBITDA of EUR 363 mn (EUR 192 mn in 2020) level of uncertainty as well as high raw material, energy, and logistic costs ● Net re
Slide 5: Highlights
Highlights www.lenzing.com
Slide 6: Lenzing is well recognized as a sustainability leader
Lenzing is well recognized as a sustainability leader and has received three upgrades in its ratings in 2021 ESG Ratings Upgrade 2021 Upgrade 2021 Upgrade 2021 Lenzing was only first-time discloser Lenzing ranks among the world’s top Lenzing has been awarded Platinum recognized with double “A” score
Slide 7: Lenzing has successfully started production in its new 100 kt Lyocell plant in Thailand
Lenzing has successfully started production in its new 100 kt Lyocell plant in Thailand Opening of 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 state-of-the-art ly
Slide 8: Lenzing's largest DWP mill to start production in H1-2022
Lenzing’s largest DWP mill to start production in H1-2022 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 ● On schedule to start in H1-2022 – almost full run rate expec
Slide 9: Lenzing joins forces with Södra on textile waste
Lenzing joins forces with Södra to further address textile waste challenges - biodegradability of LENZING™ fibers confirmed by scientific study Lenzing and Södra are joining forces in textile recycling Biodegradability of LENZING™ fibers confirmed marine ● Cooperation to address the enormous textile
Slide 10: Market and branding update
Market and branding update www.lenzing.com
Slide 11: Global textile demand is back to pre-pandemic level
Global textile demand is back to pre-pandemic level, further development depends less on Covid but more on geopolitics Monthly global apparel retail sales1 Percent of 2019 Large regional differences with very positive development in the US, FY 2020: -19 % FY 2021: -1 % China suffering under zero-Cov
Slide 12: Cotton prices have risen to USD/kg ~3.00 and viscose above USD/kg 1.80
Cotton prices have risen to USD/kg ~3.00 and viscose is back to levels above USD/kg 1.80 Fiber prices in China USD/kg, excl. VAT Viscose Cotton Polyester Dissolving hardwood pulp 3.25 Viscose 3.00 • Prices benefit from low stocks and reflect rising costs for energy and raw materials 2.75 • Operating
Slide 13: Chinese viscose plants still suffering losses
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 14: Lenzing specialties again on upward trajectory
Lenzing specialties again on upward trajectory Cellulosic fiber prices in China 6-months average, percent from January 2017, converted at constant FX rates 150 CC Index 140 130 120 110 Lenzing specialties1 100 90 80 VSF (TX) CCF high 70 60 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-
Slide 15: New products constantly added to push premiumization
New products are constantly added to Lenzing’s portfolio in order to push premiumization further ahead – seven new introductions in 2021 alone Newly announced product innovations in 2021 Lenzing unveils pioneering Lenzing introduces the first carbon TENCEL™ Modal fiber with neutral VEOCEL™ lyocell f
Slide 16: TENCEL with boost in new co-branding programs
TENCEL™ with boost in new co-branding programs, brand awareness already at 35 % TENCEL™ branding KPIs Co-branding programs Website page views on www.tencel.com Aided brand awareness of TENCEL™ in (in 1,000s) apparel and home textiles (in %) 567 2,442 35 1,319 30 168 888 109 27 2019 2020 2021 2019 20
Slide 17: VEOCEL is still a very young brand
VEOCEL™ is still a very young brand – however, brand awareness already above 30 % VEOCEL™ branding KPIs Co-branding programs Website page views on www.veocel.com Aided brand awareness of VEOCEL™ in (in 1,000s) nonwovens applications (in %) 25 225 33 115 8 9 35 27 2019 2020 2021 2019 2020 2021 2020 2
Slide 18: FY2021 Financials
FY2021 Financials www.lenzing.com
Slide 19: Group revenue increased by 34%
Group revenue increased by 34 % Group revenue in EUR mn Fiber revenue by application, % Specialties share of fiber sales in 2021 606 544 555 Standard Fibers 489 33% 32% 31% 31% 29% 438 67% 68% 69% 69% 71% 28% Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Nonwoven fi
Slide 20: EBITDA increased by 89%
EBITDA increased by 89 % EBITDA1 in EUR mn EBIT1 in EUR mn 84 (15%) 123 55 95 (23%) (11%) 80 39 56 (19%) 65 (14%) (7%) 22 (13%) (11%) 14 (4%) (3%) Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 505 +89% 373 (22%) (17%) 383 363 330 238 (18%) (17%) 201 (16%) (11%) 165
Slide 21: Dividend of EUR 4.35 proposed
Dividend of EUR 4.35 proposed Group net profit after minorities and hybrid bond¹, in EUR mn DPS in EUR EPS1 in EUR 0.34 1.06 2.00 0.71 0.39 5.00 5.00 4.352 53 3.00 3.00 28 19 2.00 2.00 0.00 0.00 9 10 2017 2018 2019 2020 2021 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Dividend Special dividend EPS1 in E
Slide 22: Operating cash flows reached almost EUR 400 mn in 2021
Operating cash flows reached almost EUR 400 mn in 2021 Cash flows, in EUR mn Trade working capital, in EUR mn 419 372 394 304 280 294 0.9% 271 245 444 414 404 384 387 127 33 24 49 1 21.9 19.4 20.6 20.7 16.0 2017 2018 2019 2020 2021 -445 -615 Trading working capital 2017 2018 2019 2020 2021 Trading w
Slide 23: Liquidity cushion of EUR 1.6 bn
Liquidity cushion of EUR 1.6 bn Net financial debt, in EUR mn Balance sheet metrics Change 977 According to IFRS (EUR mn) 31 Dec. 20213 31 Dec. 20203 in % Total assets 5,322.8 4,163.0 27.9 Liquid assets1 1,124.1 1,081.1 4.0 Total liabilities 3,250.7 2,281.6 42.5 thereof financial liabilities 2,101.2
Slide 24: Outlook
w.lenzing.com Outlook e | Lenzing Innovative by nature
Slide 25: Lenzing expects EBITDA 2022 significantly above 2021 levels
Lenzing expects EBITDA 2022 significantly above 2021 levels 2022 guidance: EBITDA significantly above 2021 levels ● Lenzing expects a continued increase in demand for sustainably produced fibers for the textile and apparel industry as well as for the hygiene and medical industry ● Market environment
Slide 26: Thank you for your attention!
for your attention! www.lenzing.com
Slide 27: Back-up
w.lenzing.com Back-up e | Lenzing Innovative by nature
Slide 28: FY2021: Group P&L
FY2021: Group P&L1 (EUR mn) 2021 2020 Change y-o-y (%) Revenue 2,194.6 1,632.6 34.4 Cost of sales (1,692.8) (1,386.4) 22.1 Gross profit 501.9 246.2 103.8 Other operating income 78.0 59.1 31.9 Selling expenses (234.0) (156.9) 49.1 Administrative expenses (117.5) (88.2) 33.2 Research and development e
Slide 29: Quarterly P&L development
Quarterly P&L development1 Change Change (EUR mn) Q1/2021 Q2/2021 Q3/2021 Q4/2021 Q4/Q3 (%) Q4/2020 Q4/Q4 (%) Revenue 489.3 544.0 555.2 606.1 9.2 437.7 38.5 Cost of sales (368.8) (389.7) (433.6) (500.7) 15.5 (366.5) 36.6 Gross profit 120.6 154.3 121.6 105.5 (13.3) 71.2 48.1 Other operating income 15
Slide 30: P&L - Divisions
P&L - Divisions EBITDA per Division FY 2021 11.2 % 27.7 % 16.5 % EUR mn -61 363 210 214 Fiber Pulp Other1 Group ● Management and control of Lenzing’s activities has been updated and organized into new divisions: Pulp, Fiber and Other www.lenzing.com 09/03/22 - 30 1) Including consolidation
Slide 31: FY 2021: Topline breakdown
FY 2021: Topline breakdown (EUR mn) H1 2021 FY 2021 Wood-based cellulosic fibers 880.8 1,833.6 Co-products of fiber production 25.1 52.8 Mechanical and plant engineering, engineering services and others 5.6 17.9 Division Fiber 911.5 1,904.3 Pulp 65.8 162.2 Biorefinery-products and energy 36.3 94.4 W
Slide 32: FY2021: Quarterly cash flow development
FY2021: Quarterly cash flow development Change Change Q4/Q4 Change (EUR mn) Q4/2021 Q3/2021 Q4/Q3 (%) Q4/2020 (%) 01-12/2021 01-12/2020 y-o-y (%) Gross cash flow (before taxes and interest) 76.1 100.4 (24.2) 61.7 23.3 411.4 178.1 131.1 Taxes and interest (5.2) 1.2 - (18.2) (71.3) (39.4) (51.2) (23.0
Slide 33: Cash flow and trading working capital development
Cash flow and trading working capital development EUR mn 111.5 115.1 EUR mn 101.6 108.0 84.3 88.3 86.3 70.9 62.9 -10% 43.5 413 430 384 381 387 21.9% 19.4% 19.0% 19.3% 16.0% -99.0 -93.6 -125.3 -127.6 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 -153.9 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Q4/2021 Trading workin
Slide 34: FY2021: Net debt bridge
FY2021: 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 2020 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2021 -411.4 471.4 Change in total working capital 977.0 9.1
Slide 35: Q4 2021: Net debt bridge
Q4 2021: 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 2021 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2021 806.3 Change in total 977.0 working capital EUR 11.5
Slide 36: 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 5,323 mn 2,767 2,072.1 Equity 2,216 1,923 3,043.5 PP&E1 1,572 1,750 18.7% 10.3% 5.4% 5.4% 2,101.2 Financial liabilities -0.5% 477.0 Inventories 2017 2018 2019 2020 2021 325.2 Tra
Slide 37: 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