Lenzing Ag · VIE:LNZ
Lenzing — Q3 2021 Earnings Presentation
33 slides from Lenzing's earnings presentation, Nov 3, 2021
Slide 1: Lenzing Investor Presentation Results 01-09/2021
Lenzing Investor Presentation Results 01-09/2021 November 3, 2021 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 01-09/2021 financial results Outlook and guidance 2021 ● Revenue of EUR 1,589 mn (EUR 1,195 mn in 01-09/2020) ● Positive market environment remains characterized ● Specialty share1 at 73 % (73 % in 01-09/2020) by high level of uncertainty as well as high raw material, energy, and logisti
Slide 4: Introduction of new CEO: Cord Prinzhorn
Introduction of new CEO: Cord Prinzhorn www.lenzing.com
Slide 5: Highlights and market update
Highlights and market update www.lenzing.com
Slide 6: Lenzing further strengthens its TENCEL fiber portfolio – VEOCEL with double digit growth in Asia
Lenzing further strengthens its TENCEL™ fiber portfolio – VEOCEL™ with double digit growth in Asia New denim offering Carbon-zero TENCEL™ fibers with VEOCEL™ growth in Asia REFIBRA™ technology ● Lenzing diversifies denim offering ● Lenzing’s VEOCEL™ brand with launch of new matte ● Expansion of carb
Slide 7: Biodegradability of LENZING fibers confirmed by scientific study
Biodegradability of LENZING™ fibers confirmed by scientific study Results of experiments conducted by the About Scripps Institution of Oceanography University of California’s Scripps Institution One of the most important centers for global earth science of Oceanography provide further scientific r
Slide 8: Lenzing rated sustainability champion by MSCI ESG with upgrade to AA rating
Lenzing rated “sustainability champion” by MSCI ESG with upgrade to AA rating • The prestigious rating agency MSCI has upgraded its rating for the Lenzing Group from “A” to “AA” as at September 2021 • Lenzing now ranks among the world’s top 6 percent in the industry - this classification is a furthe
Slide 9: Global apparel retail sales still at 2019 levels, but outlook highly uncertain
Global apparel retail sales still at 2019 levels, but outlook for the next months highly uncertain Monthly global apparel retail sales1 Percent of 2019 10 0 -10 Outlook still highly un- -20 certain and dependent on further spread of -30 Covid-19 (new virus variants, vaccine rollout, -40 and governme
Slide 10: Viscose prices recovered to levels of USD ~ 2.00
Viscose prices recovered to levels of USD ~ 2.00 Fiber prices in China Cotton Viscose Polyester USD/kg, excl. VAT Cotton FE Dissolving hardwood pulp • The recent cotton price rally was supported by good fundamentals and firm production and logistic costs; but also speculative buying by some traders
Slide 11: Profit situation of Chinese VSF plants improved recently
Profit situation of Chinese VSF plants improved recently, reflecting higher viscose and falling pulp prices USD/ton RMB/ton VSF1 price trend and theoretical profit / loss in China RMB/ton (excl. VAT) VSF2 conversion margin (incl. VAT) 16,000 3,500 1,400 15,000 2,500 1,200 14,000 1,500 13,000 1,000 1
Slide 12: Cotton and Lenzing specialties remain on an upward trajectory
Cotton and Lenzing specialties remain on an upward trajectory Cellulosic fiber prices in China1 6-months average2, percent from 1/17, converted at constant FX rates 120 CC Index 110 Lenzing specialties1 100 90 VSF (TX) CCF high 80 70 60 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 1 Lenzing‘s specialties: LEN
Slide 13: Expansion projects
Expansion projects www.lenzing.com
Slide 14: DWP mill in Brazil remains on time and in budget
DWP mill in Brazil remains on time and in budget ● JV LD Celulose (LDC): Lenzing holds 51%, Dexco1 49% JV fully consolidated by Lenzing Key facts: ● 500 kt single line DWP mill Largest of its kind ● USD 1.38 bn industrial capex (USD 704 mn Lenzing’s economic share) Absolute cost leader ● Long-term a
Slide 15: Lyocell expansion project in Thailand (T3) with commissioning by end of the year
Lyocell expansion project in Thailand (T3) with commissioning by end of the year and start of production in Q1 2022 Key facts: ● 100 kt lyocell fiber plant Largest of its kind Strong boost to specialty exposure ● ~ EUR 400 mn industrial capex Commissioning by end of the year and start of production
Slide 16: Financials
Financials www.lenzing.com
Slide 17: P&L – Revenue
P&L – Revenue Group revenue (EUR mn) Fiber revenue by application Specialties share of fiber sales +33% 1,589 27% 28% 33% 32% 31% 31% 39% 1,195 +44% 73% 72% 67% 68% 69% 69% 61% 544 555 438 489 385 Q2/2021 Q3/2021 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 01-09/2020 01-09/2021 Q3/2020 Q4/2020 Q1/2021 Q
Slide 18: P&L - EBITDA
P&L - EBITDA EBITDA margin EBITDA margin 11.1 % 12.3 % 19.3 % 22.7 % 14.4 % 11.6% 18.7% EUR mn EUR mn +115% +86% 123.2 297.6 94.5 79.8 53.9 138.5 42.9 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 01-09/2020 01-09/2021 EBITDA EBITDA www.lenzing.com 03/11/21 - 18
Slide 19: P&L - EBIT
P&L - EBIT EBIT margin EBIT margin 1.7% 11.2% 1.0 % 3.1 % 11.3 % 15.4 % 7.1 % EUR mn EUR mn 83.5 178.3 55.4 39.3 13.7 20.2 3.7 Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 01-09/2020 01-09/2021 EBIT EBIT www.lenzing.com 03/11/21 - 19
Slide 20: P&L – Net profit and earnings per share
P&L – Net profit and earnings per share EPS1 (EUR) EPS1 (EUR) (0.16) 0.34 1.06 2.00 0.71 (0.10) 3.77 EUR mn EUR mn 53.1 100.0 28.1 18.8 9.0 (4.3) (2.8) Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 01-09/2020 01-09/2021 Group net profit after minorities and hybrid bond Group net profit after minorities an
Slide 21: 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 62,9 +4% 43,5 19,5 438.7 429.7 413.2 3,7 383.8 380.5 28.5 21.9 19.4 19.0 19.3 (99.0) (93.6) (125.3) (153.9) Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 (175.1) Q3/2020 Q4/2020 Q1/2021 Q2/2021 Q3/2021 Tradin
Slide 22: Balance sheet metrics
Balance sheet metrics Change EUR mn According to IFRS (EUR mn) 30 Sep 20215 31 Dec 20205 in % Total assets 5,101.2 4,163.0 22.5 823 806 787 Liquid assets3 1,249.5 1,081.1 15.6 706 Total liabilities 3,003.8 2,281.6 31.7 thereof financial liabilities 2,055.8 1,552.5 32.4 572 Adjusted equity4 2,124.6 1
Slide 23: Outlook
w.lenzing.com Outlook e | Lenzing Innovative by nature
Slide 24: Outlook
Outlook 2021 guidance: Lenzing Group continues to expect EBITDA in 2021 to reach at least a level of EUR 360 mn ● Market environment characterized by high level of uncertainty regarding the COVID-19 pandemic as well as high raw material, energy, and logistic costs ● Commodity fiber pricing peaked mi
Slide 25: 2021 strategic milestones
2021 strategic milestones Major decisions to be taken Project Finalization Further steps to Conversion of VSF decarbonize portfolio Commissioning of commodity into LENZING™ Modal LENZING™ ● Lenzing lyocell fiber plant in fibers expansion ECOVERO™ fibers ● Nanjing Thailand (T3) expansion ● Prachinbur
Slide 26: for your attention!
for your attention! www.lenzing.com
Slide 27: Appendix – Detailed financials
Appendix Detailed financials www.lenzing.com
Slide 28: 01-09/2021: Quarterly P&L development
01-09/2021: Quarterly P&L development1 Change Change Change (EUR mn) Q3/2021 Q2/2021 Q3/Q2 (%) Q3/2020 Q3/Q3 (%) 01-09/2021 01-09/2020 y-o-y (%) Revenue 555.2 544.0 2.1 384.7 44.3 1,588.5 1,194.9 32.9 Cost of sales (433.6) (389.7) 11.3 (334.8) 29.5 (1,192.1) (1,019.9) 16.9 Gross profit 121.6 154.3 (
Slide 29: 01-09/2021: Topline breakdown
01-09/2021: Topline breakdown (EUR mn) 01-09/2021 Wood-based cellulosic fibers 1,339.4 Co-products of fiber production 38.5 Mechanical and plant engineering, engineering services and others 7.9 Division Fiber 1,385.8 Pulp 112.4 Biorefinery-products and energy 60.5 Wood and other 25.8 Division Pulp 1
Slide 30: 01-09/2021: Quarterly cash flow development
01-09/2021: Quarterly cash flow development Change Change Q3/Q3 Change (EUR mn) Q3/2021 Q2/2021 Q3/Q2 (%) Q3/2020 (%) 01-09/2021 01-09/2020 y-o-y (%) Gross cash flow (before taxes and interest) 100.4 139.9 (28.2) 34.0 195.5 335.3 116.3 188.3 Taxes and interest 1.2 (24.7) - (14.5) - (34.2) (33.0) 3.7
Slide 31: Q3-2021: Net debt bridge
Q3-2021: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt Q2 Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q3 2021 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2021 Change in total working capital EUR 7.6 mn3 -100.4 -6
Slide 32: 01-09/2021: Net debt bridge
01-09/2021: Net debt bridge Net Cash Net Financial Capex2 Change Financial Debt FY Net (incl. Fin. in Trading Change in Currency IFRS 16 Capital Debt Q3 2020 Tax Interest Gross CF 1 Ass.) WC other WC Dividend Translation Leasing Increase Others 2021 -335.3 Change in total 471.4 19.8 working capital
Slide 33: Contact and financial calendar
Contact and financial calendar Investor contact Financial calendar Sébastien Knus Annual results 2020 March 11, 2021 VP Capital Markets 77th Annual General Meeting April 14, 2021 Results 01-03/2021 May 5, 2021 Phone: +43 7672 701 3599 E-mail: s.knus@lenzing.com Half-year results 2021 August 4, 2021