Lenzing Ag · VIE:LNZ
Lenzing — Q1 2019 Earnings Presentation
82 slides from Lenzing's earnings presentation, May 8, 2019
Slide 1: Lenzing Investor Presentation
Lenzing Investor Presentation Results 01-03/2019 May 8, 2019 www.lenzing.com 08.05.2019 - 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 Q1/2019
Highlights Q1/2019 ● Group revenue up 1.8 % to EUR 560.0 mn (EUR 550.3 mn in Q1/2018) in a challenging market environment ● Specialty ratio increased to 47.3 % (Q1/2018: 42.1 %) ● Favorable FX rates ● EBITDA at EUR 92 mn (EUR 101.6 mn in Q1/2018) ● sCore TEN execution ● Pulp and lyocell expansion pr
Slide 4: Q1/2019 Fiber Market
Q1/2019 Fiber Market www.lenzing.com 08.05.2019 - 4
Slide 5: Wood-based fibers outgrow market
Wood-based fibers outgrow market Expected growth of global fiber demand until 2023 Million metric tons 130 120 Wood-based fibers CAGR 106 mn tons 110 Synthetic fibers (2018e – 2023p2) Cotton 100 Other natural fibers & wool 90 Wood-based fibers1 80 (6 %) 5-6 % p.a. 70 60 50 Synthetic fibers 4-5 % p.a
Slide 6: Cotton market
Cotton market Cotton market mn tons ● Current season 2018/19 30 26.7 27.0 26.1 26.9 27.6 27.3 ● Cotlook A-Index price projection: 88 cts/lb 25 18.3 Production ● Good harvest in autumn 2018 led to an 20 17.4 17.7 15 Consumption oversupply and decreasing prices despite Ending Stocks 10 historical high
Slide 7: Chinese viscose staple fiber market
Chinese viscose staple fiber market ● Q1/19: Standard viscose prices declined, hitting VSF1 price trend and inventory of China RMB/MT a 3-years-low at 12.160 RMB/to at end of March (incl. VAT) days 18,000 35 ● Additional capacities came on stream 17,000 30 ● Seasonal weaker demand due to Chinese New
Slide 8: Q1/2019 Lenzing
Q1/2019 Lenzing www.lenzing.com 08.05.2019 - 8
Slide 9: Specialty fiber performance increases resilience
Specialty fiber performance increases resilience % 120 115 Lenzing Specialties (China)1,2 110 Cotton Index (China) 105 100 95 90 VSF (TX) CCF high 85 80 0 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 1) 6M average in % from 01/2017 excluding FX-effect 2) Lenzing‘s specialtie
Slide 10: Expansion projects – current status
Expansion projects – current status ● Brazil in full swing ● Public hearing and environmental assessment successfully finished Brazil ● JV secured biomass, water and land ● Ground leveling started Rio de São Janeiro Paulo ● Final decision expected end of H2/2019 ● Thailand progressing well ● Prepara
Slide 11: Q1/2019 Financials
Q1/2019 Financials www.lenzing.com 08.05.2019 - 11
Slide 12: Financials – Revenue
Financials – Revenue EUR mn Share of specialty fibers +1.8 % in Q1/2019 560.9 560.0 550.3 15.9% 539.8 47.3% 525.0 36.8% Specialty fibers 1 Standard fibers Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Other business areas Group revenue 1) LENZING™ Lyocell, LENZING™ Modal, LENZING™ Specialty Viscose www.le
Slide 13: Financials – Earnings per quarter
Financials – Earnings per quarter EBITDA margin EBIT margin 18.5 % 17.7 % 17.1 % 16.9 % 16.4 % 12.5 % 11.4 % 11.0 % 8.8 % 9.7 % EUR mn EUR mn (9.5)% (21.1)% 101.6 68.9 95.8 59.8 61.6 93.2 92.0 54.4 91.4 47.3 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 EBITDA EBIT
Slide 14: Financials – Earnings per quarter (2/2)
Financials – Earnings per quarter (2/2) EPS1 (EUR) 1.89 1.55 1.62 0.56 1.65 EUR mn (14.5)% EUR 5.50 5.002 1.50 5.00 50.0 1.30 4.50 4.20 42.5 42.8 2.00 2.00 1.10 41.2 3.50 1.20 0.90 3.00 3.00 3.00 2.50 0.70 2.0 4.7% 6.3% 3.7% 0.50 14.4 1.50 1.0 3.8% 0.30 0.50 2.9% 2.8% 1.9% 2.6% 0.10 -0.50 2014 2015
Slide 15: Financials Q1/2019 – Key figures
Financials Q1/2019 – Key figures EUR mn Change 900 According to IFRS (EUR mn) 31 March 2019 31 Dec. 2018 in % 800 Total assets 2,749.8 2,630.9 4.5 (730) (683) Liquid assets1 276.8 254.4 8,8 700 (577) 570 thereof liquid funds 261.5 243.9 7.2 600 (495) Total liabilities 1,162.1 1,097.0 5.9 500 (474) 4
Slide 16: Cash flow development and trading working capital
Cash flow development and trading working capital (1.7) % Gross CF (32.2) % Operating CF EUR mn EUR mn (0.7) % Trading Working Capital (44.5) % Free CF adj. 108.6 450 444.4 441.1 29.0% 89.6 85.1 83.7 440 80.6 27.0% 72.7 73.6 427.3 430 421.8 65.6 25.0% 50.4 420 49.1 23.0% 407.3 20.6% 410 20.3% 21.0%
Slide 17: Outlook
Outlook www.lenzing.com 08.05.2019 - 17
Slide 18: Strategy execution 2019: Stay the course
Strategy execution 2019: Stay the course ● Two major decisions to be taken ● 450 kt greenfield DWP mill project in Brazil end of H2/2019 ● Thailand lyocell project beginning H2/2019 ● Spezialisation ● Finalize second TENCEL™ Luxe pilot line ● Expansion of LENZING™ ECOVERO™ production in China ● Targ
Slide 19: Business challenges 2019
Business challenges 2019 ● Economic uncertainty Estimated viscose net capacity additions1 (mn tons) ● Further viscose net capacity additions to come on stream1 6.3 – 6.4 6.7 - 7.0 ● Standard viscose prices to stay volatile and lower than in 2018 5.7 ● Caustic soda prices in Europe remain so far on h
Slide 20: Outlook 2019 – Fiber market and Lenzing Group
Outlook 2019 – Fiber market and Lenzing Group The International Monetary Fund expects a slowdown of global economic growth to 3.3 percent in 2019, mainly driven by increasing protectionist tendencies and growing geopolitical tensions. The currency environment in the regions relevant to Lenzing will
Slide 21: Q1/2019 Financial information
Q1/2019 Financial information www.lenzing.com 08.05.2019 - 21
Slide 22: Q1/2019: Consolidated Group P&L
Q1/2019: Consolidated Group P&L Change Change (EUR mn) Q1/2019 Q4/2018 Q1/2018 Q1/Q4 (%) Q1/Q1 (%) Revenue 560.0 539.8 550.3 3.7 1.8 Change in inventories of finished goods and work in progress (5.6) 31.6 (15.0) - (62.8) Own work capitalized 10.1 15.8 15.1 (36.2) (33.2) Other operating income 25.0 1
Slide 23: Q1/2019: Topline breakdown
Q1/2019: Topline breakdown Change Change (EUR mn) Q1/2019 Q4/2018 Q1/Q4 (%) Q1/2018 Q1/Q1 (%) Breakdown of Fibers segment revenue Textile fibers (%) 70.9 70.9 0.0 70.4 0.7 Nonwoven fibers (%) 29.1 29.1 0.0 29.6 (1.7) Fibers only 464.1 460.1 0.9 456.9 1.6 Other1 93.8 77.6 20.9 90.6 3.5 Total segment
Slide 24: Q1/2019 Total opex structure
Q1/2019 Total opex structure Q1/2018 (Total Opex EUR 461.6 mn) Q1/2019 (Total Opex EUR 497.5 mn) 62.1 62.3 13.4% 12.5% 91.0 100.5 19.7% 20.2% 308.6 66.8% 334.7 67.3% Cost of material and purchased services Cost of material and purchased services Personnel expenses Personnel expenses Other operating
Slide 25: Q1/2019: Net debt bridge
Q1/2019: Net debt bridge Net Net Inflow from financial financial Cash capex2 Change in Change in the sale of Currency IFRS 16 debt debt 2018 Tax Net interest Gross CF1 (incl. fin. ass.) trading WC other WC Dividend subsidiaries translation leasing4 Others Q1/2019 Change in total working capital EUR
Slide 26: Q1/2019: Cash flow
Q1/2019: Cash flow Change Change (EUR mn) Q1/2019 Q4/2018 Q1/Q4 (%) Q1/2018 Q1/Q1 (%) Gross cash flow (before taxes and interest) 99.6 107.4 (7.3) 99.1 0.6 Taxes and interest (15.9) (26.9) (40.7) (14.0) 14.0 Gross cash flow (after taxes and interest) 83.7 80.6 3.9 85.1 (1.7) Change in total working
Slide 27: FY 2018 Back-up financial information
FY 2018 Back-up financial information www.lenzing.com 08.05.2019 - 27
Slide 28: FY 2018: Consolidated Group P&L
FY 2018: Consolidated Group P&L (EUR mn) 2018 2017 Change y-o-y (%) Revenue 2,176.0 2,259.4 (3.7) Change in inventories of finished goods and work in progress 36.4 16.8 116.8 Own work capitalized 55.7 46.1 20.8 Other operating income 57.2 49.9 14.5 Cost of material and purchased services (1,297.3) (
Slide 29: FY 2018: Consolidated Group P&L – Quarters
FY 2018: Consolidated Group P&L – Quarters Change Change (EUR mn) Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q4/Q3 (%) Q4/2017 Q4/Q4 (%) Revenue 550.3 525.0 560.9 539.8 (3.8) 532.8 1.3 Change in inventories of finished goods and work in progress (15.0) 17.8 1.9 31.6 - 20.3 56.0 Own work capitalized 15.1 13.0 1
Slide 30: FY 2018: Topline breakdown
FY 2018: Topline breakdown Change Change Q4/Q3 Q4/Q4 Change (EUR mn) Q1/2018 Q2/2018 Q3/2018 Q4/2018 (%) Q4/2017 (%) 2018 2017 y-o-y (%) Breakdown of Fibers segment revenue Textile fibers (%) 70.4 70.3 71.6 70.9 (0.9) 69.0 2.7 70.8 70.0 1.1 Nonwoven fibers (%) 29.6 29.7 28.4 29.1 2.4 31.0 (6.0) 29.2
Slide 31: Financials 2018 – Earnings per quarter
Financials 2018 – Earnings per quarter EBITDA margin EBIT margin EPS1 (EUR) 19.8 % 18.5 % 17.7 % 17.1 % 16.9 % 13.6 % 12.5 % 11.4 % 11.0 % 8.8 % 2.35 1.89 1.55 1.62 0.56 EUR mn EUR mn EUR mn (13.2)% (34.8)% (76.9)% 62.4 105.3 72.6 101.6 68.9 59.8 61.6 50.0 95.8 93.2 41.2 42.5 91.4 47.3 14.4 Q4/2017
Slide 32: Financials 2018 – Earnings
Financials 2018 – Earnings EBITDA margin EBIT margin EPS1,2 (EUR) 12.9 % 14.7 % 20.1 % 22.2 % 17.6 % 1.2 % 7.6 % 13.9 % 16.4 % 10.9 % (0.92) 4.78 8.48 10.47 5.61 EUR mn (24.0) % EUR mn EUR mn (36.0) % (47.4) % 502 371 282 428 382 296 229 238 290 240 148 128 151 22 2014 2015 2016 2017 2018 2014 2015
Slide 33: Net income 2018 impacted by one-offs
Net income 2018 impacted by one-offs (EUR mn) Impairment of assets under construction -8.6 Impairment on financial assets -9.1 Effect out of acquisition of remaining 30 % shares in Chinese operation -21.4 Tax effect one-offs +3.6 www.lenzing.com 08.05.2019 - 33
Slide 34: FY 2018: OPEX as of total sales
FY 2018: OPEX as of total sales Change Change Q4/Q3 Q4/Q4 Change (EUR mn) Q1/2018 Q2/2018 Q3/2018 Q4/2018 (%) Q4/2017 (%) 2018 2017 y-o-y (%) Total sales 550.3 525.0 560.9 539.8 (3.8) 532.8 1.3 2,176.0 2,259.4 (3.7) Total OPEX1 (461.6) (479.4) (490.4) (511.8) 4.4 (472.7) 8.3 (1,943.2) (1,869.7) 3.9
Slide 35: FY 2018 Total opex structure
FY 2018 Total opex structure 2017 (Total Opex EUR 1,869.7 mn) 2018 (Total Opex EUR 1,943.2 mn) 262.4 271.5 14.0% 14.0% 349.4 18.7% 374.5 19.3% 1,258.0 1,297.3 67.3% 66.8% Cost of material and purchased services Cost of material and purchased services Personnel expenses Personnel expenses Other opera
Slide 36: FY 2018: Solid balance sheet, strong ROCE
FY 2018: Solid balance sheet, strong ROCE as at Dec. 31, 2018 ∑ EUR 2,630.9 mn 3,000.0 ∑ EUR 2,630.9 mn According to IFRS (EUR mn) 31 Dec. 2018 31 Dec. 2017 Change in % Total assets 2,630.9 2,497.3 5.4 2,500.0 Liquid assets1 254.4 315.8 (19.4) thereof liquid funds 243.9 306.5 (20.4) 2,000.0 Total li
Slide 37: FY 2018: Net debt bridge
FY 2018: Net debt bridge Change in total working capital EUR (22.3) mn3 265.6 66.8 44.3 22.1 82.2 6.8 392.9 132.9 40.6 0.4 4.4 219.4 0.1 Net Acquisition of Net Cash capex Inflow from financial Change in Change in puttable non- Currency financial Tax Net interest Gross CF (incl. fin. Dividend the sal
Slide 38: Financials – Key figures (1/2)
Financials – Key figures (1/2) EUR mn EUR mn 900 800 (730) 1,800 49.7% (683) 1,750 700 (577) 570 1,700 600 39.7% 1,596 1,579 500 450 (474) 1,600 1,572 1,541 (383) 29.7% 400 355 316 1,500 18.6% 300 280 254 15.1% 19.7% 1,400 10.3% 200 328 219 8.1% 67 9.7% 100 1,300 7 (0.1)% 0 1,200 -0.3% 2014 2015 201
Slide 39: Financials – Key figures (2/2)
Financials – Key figures (2/2) EUR mn EUR 1,700 120% 1,553 110% 1,528 1,500 100% 5.50 5.00 5.00 1 1.50 1,390 90% 1.30 1,300 4.50 4.20 1,219 80% 2.00 2.00 1.10 70% 1.20 1,100 1,055 3.50 60% 0.90 3.00 3.00 61% 59.0% 50% 2.50 3.00 0.70 900 53% 2.0 51% 4.7% 40% 6.3% 0.50 45% 3.7% 1.50 30% 1.0 700 3.8% 0
Slide 40: FY 2018: Cash flow by quarters
FY 2018: Cash flow by quarters Change Change Change Q4/Q3 Q4/Q4 y-o-y (EUR mn) Q1/2018 Q2/2018 Q3/2018 Q4/2018 (%) Q4/2017 (%) 2018 2017 (%) Gross cash flow (before taxes and interest) 99.1 93.3 93.2 107.4 15.3 114.8 (6.4) 392.9 511.8 (23.2) Taxes and interest (14.0) (27.7) (20.4) (26.9) 31.5 (21.4)
Slide 41: Cash flow development and trading working capital
Cash flow development and trading working capital (27.4) % (Gross CF) +3.3 % (Operating CF) (27.7) % (Free CF adj.) +7.2 % EUR mn 600 EUR mn 39.0% 473 500 82 419 0 386 78 34.0% 366 0 400 447 83 444 304 396 414 284 280 380 29.0% 271 300 25.6% 231 219 216 23.4% 24.0% 145 200 20.8% 20.6% 115 19.4% 100
Slide 42: Appendix Equity story
Appendix Equity story www.lenzing.com 08.05.2019 - 42
Slide 43: 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” www.lenzing.com 08.05.2019 - 43
Slide 44: Global fiber market at a glance
Global fiber market at a glance 2018e consumption numbers ● Lyocell ● Modal 6% Wood-based ● Viscose cellulose fibers2 26% Cotton 106 mn tons 62% Synthetic fibers 1% Wool 5% Other natural fibers1 1) Incl. bast, flax, hemp, jute, silk and allied fibers 2) Wood-based and cotton linter-based cellulose f
Slide 45: Lenzing – Market leader in all three fiber generations
Lenzing – Market leader in all three fiber generations Source: China Chemical & Fiber Economic Information Network, China Chemical Fiber Group, Lenzing data www.lenzing.com 08.05.2019 - 45
Slide 46: Lenzing is the only global player with European roots in viscose staple fibers
Lenzing is the only global player with European roots in the viscose staple fibers market1 (2018e) … Lenzing with 17 % share of production Lenzing with 15 % share of capacities2 Lenzing Others Lenzing Others 17% 16% 15% 23% Grace 5% Sateri 4 Sateri 4 10% Yamei 16% Grace 5% 5.5 mn tons 5% 7.0 mn tons
Slide 47: … and is a global leader in wood-based specialty fibers
… and is a global leader in wood-based specialty fibers Balanced exposure to matured and Global network of production sites and emerging markets sales offices Fiber revenue by region 2018 footprint AMEA (Asia, Middle North Asia East and Africa) 36 % 36 % Europe & Americas 28 % Source: Lenzing data a
Slide 48: Capacity 2019: A global footprint
Capacity 20191: A global footprint Europe & China Total pulp Americas2 capacity 544 544 575 575 260 260 178 178 275 275 119 119 165 165 2018 2019e 300 300 2018 2019e 2018 2019e Total capacity Lenzing (A) Paskov (CZ) Indonesia dissolving dissolving pulp capacity pulp capacity 1,045 1,045 260 260 119
Slide 49: Long-term interfiber price development
Long-term interfiber price development Staple fiber prices – Development in China1 RMB/to (incl. VAT) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 01/2010 11/2010 09/2011 07/2012 05/2013 03/2014 01/2015 11/2015 09/2016 07/2017 05/2018 03/2019 Viscose Cotton Polyester 1) Price development until
Slide 50: 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 Fragmentation Top 5 to 10 players hold between 60-80%
Slide 51: Sales and marketing – Customer concentration
Sales and marketing – Customer concentration Textiles − Percent of sales by customers Nonwovens − Percent of sales by customers (20181) (20181) 63% 49% 46% 35% 33% 22% Top 5 Top 10 Top 20 Top 5 Top 10 Top 20 Source: Lenzing data 2018 www.lenzing.com 08.05.2019 - 51
Slide 52: Lenzing underpins its innovation leadership
Lenzing underpins its innovation leadership Industry leading R&D spend (EUR 42.81 mn in 2018) R&D is an essential part of the sCore TEN strategy and R&D expenditures (2015-2018)1 contributes to all five fields EUR mn % ● Decision to invest appr. EUR 100 mn into sustainable production 60.0 3.0 techno
Slide 53: Development journey of our three fibers
Development journey of our three fibers Technological competence in fiber production www.lenzing.com 08.05.2019 - 53
Slide 54: Successful commercialization of innovations
Successful commercialization of innovations LENZING™ ECOVERO™ fibers TENCEL™ Luxe filament REFIBRA™ technology Among the top environmental Positioning in the premium luxurious REFIBRA™ technology is Lenzing’s standards in viscose production; segment; excellent partner with other first step to contri
Slide 55: Innovation: LENZING™ ECOVERO™
Innovation: 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 highe
Slide 56: Innovation: Lyocell fibers with REFIBRA™ technology
Innovation: 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-spin
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
Slide 58: Wood-based fibers outgrow market
Wood-based fibers outgrow market Expected growth of global fiber demand until 2023 Million metric tons 130 Wood-based fibers CAGR 120 Synthetic fibers 106 m tons (2018e – 2023p2) 110 Cotton 100 Other natural fibers & wool 90 Wood-based fibers1 (6 %) 5-6 % p.a. 80 70 60 Synthetic fibers 4-5 % p.a. 50
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 2% 27% 39% 14% 14% ROW 3% 12% 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
Slide 61: Lenzing's Sustainability Strategy and targets
Lenzing‘s Sustainability Strategy and targets Target 2: Target 4: Specific waste water emissions Supplier assessment Target 5: Transparency Target 1: Specific sulfur emissions Target 3: Conservation solutions www.lenzing.com 08.05.2019 - 61
Slide 62: 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 63: Certification status in the Lenzing Group
Certification status in the Lenzing Group ● Certification status of total wood input at Lenzing fiber production sites via own and purchased dissolving wood pulp ● All PEFC™ certified or controlled source is also FSC® controlled wood Basis: dissolving wood pulp by weight Average 2015-2017: changes l
Slide 64: Highly efficient use of raw materials
Highly efficient use of 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) Highly efficient use of the raw material wood in the Lenzing Group‘s biorefineries www.lenzing
Slide 65: Fiber production fully secured by a robust pulp supply
Fiber production fully secured by a robust pulp supply Lenzing’s level of backward integration: Own pulp supply in percentage of annual fiber capacity ● 60 % secured by own pulp production ● Remaining pulp is secured Total annual through long-term contracts fiber capacity (100 %) 56% 56% 56% 57% 60%
Slide 66: 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 67: 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 techn
Slide 68: 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 ● Le
Slide 69: Certificates and recognitions
Certificates and recognitions ● VÖNIX (Austrian Sustainability Index) ● 100 % USDA Biobased certification for Lenzing standard fibers (LENZING™ FR at 99 %) ● The EU Ecolabel (European Flower) ● OK compost HOME (TÜV AUSTRIA BELGIUM) ● Responsible Care® ● OK biodegradable SOIL (TÜV AUSTRIA BELGIUM) ●
Slide 70: The strategy – driving value growth
The strategy – driving value growth www.lenzing.com 08.05.2019 - 70
Slide 71: 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 (done) ● Strengthen our bio-refinery business ● Grow viscose position
Slide 72: 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 (done) Move selectively forward 4 Establish two additional in the value chain via new game-changing 2 regional application and technologies customer innovation c
Slide 73: Backup
Backup www.lenzing.com 08.05.2019 - 73
Slide 74: New brand architecture well established
New brand architecture well established Launch of www.tencel.com www.veocel.com www.lenzingindustrial.com For Textile For Nonwovens For Industrial & Textile B2C Specialties B2C Specialties Core www.lenzing.com 08.05.2019 - 74
Slide 75: Succesful launch of TENCEL™ in textiles
Succesful launch of TENCEL™ in textiles TENCEL™ TENCEL™ TENCEL™ TENCEL™ TENCEL™ TENCEL™ TENCEL™ Intimate Active Home Denim Luxe feels so right feels so right feels so soft feels so ready feels so feels so feel the touch TENCEL™ is TENCEL™ is comfortable natural of conscious applicable to applicable
Slide 76: LENZING™ fibers fields of application
LENZING™ fibers fields of application Textiles Home Luxe Active Intimate Denim www.lenzing.com 08.05.2019 - 76
Slide 77: A new brand for nonwovens
A new brand for nonwovens VEOCEL™ Beauty VEOCEL™ Body VEOCEL™ Intimate VEOCEL™ Surface gentle care, reliable care, natural care, effective care, purely for you purely for you purely for you purely for you www.lenzing.com 08.05.2019 - 77
Slide 78: LENZING™ fibers fields of application
LENZING™ fibers fields of application Nonwovens Body Surface Beauty Intimate www.lenzing.com 08.05.2019 - 78
Slide 79: Brand for new business areas
Brand for new business areas LENZING™ LENZING™ LENZING™ LENZING™ LENZING™ LENZING™ LENZING™ TENCEL™ for for for for for for for for Agriculture Engineering Packaging Protective Workwear Biorefinery Co-Products Footwear Products Wear Products TENCEL™ for Footwear is a B2B branded offer for Industrial
Slide 80: LENZING™ industrial applications
LENZING™ industrial applications Industrials Packaging Biorefinery Products Workwear Agriculture Co-Products Footwear Protective Wear Engineered Products www.lenzing.com 08.05.2019 - 80
Slide 81: Lenzing share information
Lenzing share information Oberbank AG1 3.8% ISIN LNZ / AT0000644505 Bloomberg LNZ:AV Reuters LNZNF.PK ATX, ATX Prime, ATX Global B&C Indices Players, VÖNIX Sustainability Index Privatstiftung 50.0% Number of shares 26,550,000 Free float Share price March 31, 2019 EUR 95.50 46.2% Market capitalizatio
Slide 82: Contacts and financial calendar
Contacts and financial calendar Investor Relations contact Financial calendar Stephanie Kniep Full year results 2018 March 14, 2019 Head of Investor Relations 75th Annual General Meeting April 17, 2019 Corporate Communications & Investor Relations Results 01-03/2019 May 8, 2019 Phone: +43 7672 701 4