Lenzing Ag · VIE:LNZ
Lenzing — H1 2022 Earnings Presentation
34 slides from Lenzing's earnings presentation, Aug 3, 2022
Slide 1: Lenzing Investor Presentation
Lenzing Investor Presentation Results 01-06/2022 August 3, 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 H1-2022 financial results ● Revenue of EUR 1,294 mn (EUR 1,033 mn in H1-2021) Outlook and guidance 2022 ● EBITDA of EUR 189 mn (EUR 218 mn in H1-2021) ● The highly uncertain supply situation ● Net result after minorities and hybrid bond of EUR 63 mn and increased costs for energy and raw
Slide 4: Energy situation
Energy situation www.lenzing.com
Slide 5: Lenzing with limited exposure to potential natural gas supply reduction
Lenzing with limited exposure to potential natural gas supply reduction Lenzing’s global manufacturing footprint Paskov Grimsby Czech Republic Nanjing Pulp production dissolv ing w ood pulp China United Kingdom Fiber production Lyocell Fiber production Viscose ● Lenzing operates a total of nine prod
Slide 6: Lenzing invests in sustainable energy in all its sites
Lenzing invests in sustainable energy in all its sites Purwakarta (Indonesia) Lenzing (Austria) ● Green electricity based on renewable energy since July ● Construction of several photovoltaic systems ongoing 2022 ● Upper Austria’s largest ground-mounted photovoltaic ● Conversion to biomass energy on
Slide 7: Key projects
Key projects www.lenzing.com
Slide 8: Production ramp-up for new DWP mill successfully progressing
Production ramp-up for new DWP mill successfully progressing 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 - full run rate expected end of 2022 ●
Slide 9: Ramp-up phase of new 100 kt Lyocell plant well on track
Ramp-up phase of new 100 kt Lyocell plant well on track Lenzing’s new 100 kt Lyocell plant in Thailand ● Project delivered on schedule and at budget ● New plant will help serve the growing demand for sustainably produced fibers ● The plant is operated CO2-neutral – and is therefore an important mile
Slide 10: Market and products update
Market and products update www.lenzing.com
Slide 11: Global apparel sales above pre-pandemic level, China lockdowns with limited impact
Global apparel sales above pre-pandemic level, China lock- downs in H1 2022 with limited impact on global average Monthly global apparel retail sales1 Percent of 2019 2022 YTD: FY 2020: -19 % FY 2021: -1 % +7 % 20 Large regional differences in Global demand development 10 0 -10 Low consumer confiden
Slide 12: Cotton prices experience downward correction and viscose prices level out
Cotton prices experience downward correction and viscose prices level out Fiber prices in China USD/kg, excl. VAT 4.00 Dissolving hardwood pulp (DWP) 3.75 • Prices were still increasing, but downstream resistance gets stronger 3.50 Cotton 3.25 • Prices slumped since their peak in May, but remain ele
Slide 13: Chinese viscose plants extend their losses on the back of rising raw material costs
Chinese viscose plants extend their losses on the back of rising raw material costs VSF1 price trend and theoretical profit / loss in China USD/ton VSF2 conversion margin RMB/ton RMB/ton (incl. VAT) (excl. VAT) 16,000 3,500 1,400 15,000 2,500 14,000 1,200 1,500 13,000 1,000 12,000 500 11,000 800 -50
Slide 14: Prices of Lenzing specialties show robust development
Prices of Lenzing specialties show robust development Cellulosic fiber prices in China 6-months average, percent from January 2017, converted at constant FX rates 160 150 CC Index 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
Slide 15: Lenzing celebrates 30 years of TENCEL fibers - and other highlights
Lenzing celebrates 30 years of TENCEL™ fibers - and other highlights Selected fiber and brands highlights in 2022 so far Lenzing partners with Together 30 years of TENCEL™ fibers Lenzing celebrates 30 years of for Sustainability (TfS) to build TENCEL™ fibers global sustainable supply chains Young Sc
Slide 16: Financials
Financials www.lenzing.com
Slide 17: Group revenue increased by 25 %
Group revenue increased by 25 % Group revenue in EUR mn Fiber revenue by application, % Specialties share of fiber sales in H1/2022 +25% 1,294 Standard Fibers 31% 31% 29% 32% 32% 1,033 679 29% 606 615 544 555 71% 69% 69% 71% 68% 68% Specialty Fibers1 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 H1/2021 H
Slide 18: EBITDA at EUR 189 mn
EBITDA at EUR 189 mn EBITDA in EUR mn EBIT in EUR mn -13% -31% 218 139 (21%) 84 123 189 (13%) (15%) (23%) (15%) 101 96 88 (15%) 80 52 (7%) (14%) (14%) 65 44 (8%) 39 (11%) (7%) (7%) 22 (4%) Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 H1/2021 H1/2022 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 H1/2021 H1/2022
Slide 19: Pulp Division with EUR 126 mn EBITDA due to high DWP prices
Pulp Division with EUR 126 mn EBITDA due to high DWP prices EBITDA per Division in EUR mn H1 / 2022 H1 / 2021 79 126 218 189 -32 171 -48 111 Fiber Pulp Other1 Group Fiber Pulp Other1 Group 1) Incl. consolidation www.lenzing.com 02/08/22 - 19
Slide 20: Earnings per share of EUR 2.36
Earnings per share of EUR 2.36 Group net profit¹ after minorities and hybrid bond, in EUR mn EPS1 in EUR EPS1 in EUR 2.00 0.71 0.39 0.87 1.49 3.06 2.36 53 81 40 63 23 19 10 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 H1/2021 H1/2022 Group net profit¹ after minorities and hybrid bond Group net profit¹ af
Slide 21: Gross cash flow at EUR 84 mn
Gross cash flow at EUR 84 mn Cash Flows and Working Capital, in EUR mn 115 102 108 602 88 86 86 80 84 71 35 430 444 413 387 47 22% 19% 19% 18% -65 16% -94 -103 -125 -128 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 -270 Q2/2021 Q3/2021 Q4/2021 Q1/2022 Q2/2022 Factoring Gross cash flow Operating cash flow
Slide 22: Liquidity cushion of EUR 1.1 bn
Liquidity cushion of EUR 1.1 bn Change EUR mn According to IFRS (EUR mn) 30 Jun 2022 31 Dec 2021 in % Total assets 5,737.3 5,322.8 7.8 1,502 Liquid assets 3 872.5 1,124.1 (22.4) Total liabilities 3,619.3 3,250.7 11.3 1,096 thereof financial liabilities 2,374.5 2,101.2 13.0 1,023 977 Adjusted equity4
Slide 23: Outlook
Outlook e | Lenzing Innovative by nature
Slide 24: 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 ● The highly uncertain supply situation and increased costs for energy and raw materials as well as supply chain disturbances lead to extremely challenging market environment
Slide 25: Review of corporate strategy with updated financial targets
Review of corporate strategy with updated financial targets Enhancement of Lenzing’s corporate strategy ● Increase focus on sustainable and high-quality premium products and solutions Sharpened ● Intensify ingredient branding activities More details to be shared in corporate and capital markets day
Slide 26: Lenzing with commitment to consistently provide attractive dividends to shareholders
Lenzing with commitment to consistently provide attractive dividends to shareholders Revised dividend policy Historical dividend development, EUR/share 5.00 5.00 min. 4.50 ● Lenzing has been paying dividends in most 4.35 4.20 years in the past – however on varying levels ● Finalization of new DWP mi
Slide 27: Thank you for your attention!
for your attention! www.lenzing.com
Slide 28: Back-up
Back-u | Lenzing wwwalenzing.com Innovative by nature
Slide 29: H1-2022: Quarterly P&L development
H1-2022: Quarterly P&L development Change Change Change MEUR Q2 2022 Q1 2022 Q2 2021 H1 2022 H1 2021 Q1/Q2 % Q2/Q2 % H1/H1 % Revenues 678.6 615.0 10.3% 544.0 24.7% 1,293.6 1,033.3 25.2% Cost of Sales -524.4 -486.1 7.9% -389.7 34.5% -1,010.5 -758.5 33.2% Gross Profit 154.3 128.9 19.6% 154.3 0.0% 283.
Slide 30: H1-2022: Topline breakdown
H1-2022: Topline breakdown (EUR mn) H1/2022 Wood-based cellulosic fibers 1,080.0 Co-products of fiber production 30.6 Mechanical and plant engineering, engineering services and others 7.1 Division Fiber 1,117.6 Pulp 83.5 Biorefinery-products and energy 76.0 Wood and other 14.2 Division Pulp 173.7 Ot
Slide 31: H1-2022: Quarterly cash flow development
H1-2022: Quarterly cash flow development Change Change Q2/Q2 Change (EUR mn) Q2/2022 Q1/2022 Q2/Q1 (%) Q2/2021 (%) H1/2022 H1/2021 H1/H1 (%) Gross cash flow (before taxes and interest) 107.8 88.6 21.7 139.9 (22.9) 196.4 234.9 (16.4) Taxes and interest (24.2) (2.6) 844.0 (24.7) (2.4) (26.7) (35.4) (2
Slide 32: Q2-2022: Net debt bridge
Q2-2022: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt Q1 Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q2 2022 Tax Interest Gross CF1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2022 Change in total working capital EUR (150.9) mn3 1,096.
Slide 33: H1-2022: Net debt bridge
H1-2022: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt FY Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q2 2021 Tax Interest Gross CF1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2022 Change in total working capital EUR (159.0) mn3 977.0
Slide 34: 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 Phone: +43 7672 701 3599 Results 01-03/2022 May 4, 2022 E-mail: s.knus@lenzing.com Half-year results 2022 August 3, 2022