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Leading Fiber Innovation

LENZING ROADSHOW PRESENTATIONAugust 2011

2

The information contained in this document has not been independently verifiedand no representation or warranty expressed or implied is made as to, and noreliance should be placed on, the fairness, accuracy, completeness orcorrectness of this information or opinions contained herein.

Certain statements contained in this document may be statements of futureexpectations and other forward looking statements that are based onmanagement‘s current view and assumptions and involve known and unknownrisks and uncertainties that could cause actual results, performance or events todiffer materially from those expressed or implied in such statements.

None of Lenzing AG or any of its affiliates, advisors or representatives shall haveany liability whatsoever (for negligence or otherwise) for any loss howsoeverarising from any use of this document or its content or otherwise arising inconnection with this document.

Disclaimer

3

Key highlights Q2/2011

Exceptional Q2

EUR 544 mill. sales, EBITDA EUR 133 mill. (24.4% margin) Average fiber price in Q2/2011 above Q1/2011

Price increase in specialty fibers more than offsets price consolidation instandard viscose for textile fibers

Nonwoven viscose proves resilience Net financial debt down to EUR 170 mill. (as of 30 June 2011) H2 outlook Return to excellent sales levels of Q1/2011 due to standard viscose price

consolidation continuing into the second half “Pipeline effect“ – depletion of stock throughout textile value chain New capacity at Lenzing’s plant in China coming on-stream

All on track for FY guidance FY 2011 EBITDA guidance narrowed to upper end between EUR 470 mill. -

500 mill.

4

Unchanged investment highlights

Megatrends

Population growth

Prosperity growth

Sustainability

Barriers to entry

Resilience

Expansion program

Nanjing

Indonesia

Macro-economic environment

Share price

not on trackon track

? ?

5

Global market leader in a fragmented market

Lenzing

17%

Grasim2

8%

Fulida

7%

Aoyang

7%Helon3

6%IndoBharat

5%FCFC

4%

Tangshan

4%

ThaiRayon2

4%

Others

35%

Sateri

3%

Asia

53%

Europe incl. Turkey

36%

Americas

8%

RoW

3%

Lenzing with 17% market share1

Only true global player –sales by region4

1) by capacity, based on latest available company information from company websites and annual/interim reports

2) direct or indirect non-controlling shareholdings by private Indian conglomerate Aditya Birla; marketing of viscosestaple fibers under the ‘Birla’ umbrella brand

3) in bankruptcy

4) fiber sales by volume in metric tons H1/2011

Source: Company information; The Cellulose Gap, Gherzi, February 2011

6

6.9%(19.5%)(33.0%)

(24.6%)

5.4%19.1%

15.1%

28.7%15.2%16.8%21.5%

0

0,5

1

1,5

2

2,5

3

3,5

1. Q. 09 2. Q. 09 3. Q. 09 4. Q. 09 1. Q. 10 2. Q. 10 3. Q. 10 4. Q. 10 1. Q. 11 2. Q. 11 Aug.18

Lenzing Viscose® Cotton A-Index

Market environment

Lenzing standard viscose vs. cotton prices

(in EUR/kg)

Strong volume demand for textile andnonwoven fibers, price increase for MMC-specialty fibers

Speculative cotton prices as a majorreference point for the entire fiber marketslowed down demand in the textile chain,mainly in China

Unchanged strong demand and price levelfor specialties and nonwoven fibers

Softening macro-economic outlook forQ3/4 2011

3

Re-establishment of premium to cotton underway

Historically, standard viscose fibers traded with a 15% - 20% premium over cotton.

7

Average price per kgExternal sales1 (EUR mill.)

Average prices in Q2 above Q1Continued upward trend for fiber prices

160 170174172175169

1.801.92

2.332.29

1.911.97

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

ASP growthSales volume (kt)2 ASP (EUR/kg)

289334 334

331

399 396

9.4% -3.1% 0.5%19.3%

1.8%

1) excluding sales of co-products and external sales of pulp, wood and energy2) sales volume and not production volume

8

ASP growthSales volume (kt) ASP (EUR/kg)

49 51 52 52 5046

1.85 1.81 2.05 2.101.791.72

0

400

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

-1

6

Textile fibers1

External Sales (EUR mill.)

Textile and nonwoven fibersContinued to achieve average price increases

Nonwoven fibers1

External Sales (EUR mill.)

1) excluding sales of co-products and external sales of pulp, wood and energy

-2.2% -1.1% 14.5% 2.4%7.6%

105

79

91 93 93

106

120 120 122 120114

2.02 1.952.39 2.42

1.981.84

0

400

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

-1

6

124

-3.5% 1.5% 20.7% 1.3%9.8%

291

210

243241

238

293

ASP growthSales volume (kt) ASP (EUR/kg)

9

18 19 19 18 2120

2.14 2.18 2.45 2.672.121.97

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

Lenzing Viscose®1

Textile fibersSpecialties more than offset price consolidation in viscose fibers for textiles

TENCEL®1

Sales volume (kt) ASP growthASP (EUR/kg)

76 7886838583

2.162.251.811.751.871.66

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

6-6.4% 3.4%24.3%

-4.0%12.7%


1.9% -2.8% 15.6% 9.0%8.6%

19 19 18 18 2119

2.53 2.59 3.02 3.112.682.42

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

Lenzing Modal®1,2


2.4% 3.5% 12.7% 3.0%4.5%

1) excluding sales of co-products and external sales of pulp, wood and energy2) including Lenzing FR®

Consolidation in textile viscose prices in Asia followingsteep cotton price decline beginning in Q2 more thanoffset by price increases in specialties

Continued increase of TENCEL® prices and volume

Increase in sales volume of Lenzing Modal® relates toshift of Lenzing Viscose® line to Lenzing Modal® andcontinued price increases (softened in product mixModal/FR)

10

Nonwoven fibersNonwoven prove price continuity

1) excluding sales of co-products and external sales of pulp, wood and energy

2) sales volume in tons and not production volume

Viscose nonwoven proves resilience to Asian textile viscose price consolidation

Strategic portfolio considerations continue to lead to long-term stability

Lenzing Viscose®1 TENCEL®1

384042434341

1.68 1.722.062.02

1.741.80

0

80

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

-1

3

-3.3% -1.2%17.4%

2.0%7.1%

8 9 9 10 108

2.12 2.112.17

2.30

2.031.88

0

80

Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011

-1

3

-0.5% -3.8%6.9%

6.0%

12.8%

ASP growthSales volume (kt)2 ASP (EUR/kg) Sales volume (kt)2 ASP growthASP (EUR/kg)

11

Relative pricingProven price setting power in specialties

124109117124114118TENCEL®

144134149148135145Lenzing Modal® (incl. FR)

100100100100100100Lenzing Viscose®

Q2/2011Q1/2011Q4/2010Q3/2010Q2/2010Q1/2010(%)

Relative price (viscose = 100%)

Textile fibers

112107118121118111TENCEL®

100100100100100100Lenzing Viscose®

Q2/2011Q1/2011Q4/2010Q3/2010Q2/2010Q1/2010(%)

Relative price (viscose = 100%)

Nonwoven fibers

Specialties re-establishing at 40% - 50% premium for Lenzing Modal® and 20% - 30% premium forTENCEL® over viscose

12

2/3* of total sales NOT affectedby price consolidation in ChinaSpecialties increase to 36% of fiber sales

Total external salesby segment

Fiber2 salesby generation

Fiber2 salestextile/nonwoven

SegmentsPlastics/Engineering/Others1

10%

LenzingModal ®

17%

NonwovenFibers

27%

Textile Fibers

73%

Fibers Core2

74%

FibersOthers1

17%

TENCEL®

Nonwoven5%

TENCEL®

Textile14%

Textile viscose43%

Nonwovenviscose21%Source: Lenzing

*) 43% textile fibers of 74% core fibers sales equals 1/3 of viscose textile fibers

1) external sales of co-products, wood and energy

2) fiber sales without external sales of pulp, co-products, wood and energy

16%

Q2/2011 sales breakdown

13

19.9

24.4

76

78

108

133

544

170

Q2/2011

-17.0EBIT margin (%)

-21.6EBITDA margin (%)

20.663Net income after minorities

16.467Net income

18.7

15.7

2.3

0.0

Growth rates (%)Q1/Q2

91EBIT

115EBITDA1

532Total external sales

170Production man-made cellulose fibers (kt)

Q1/2011(EUR mill.)

Exceptional Q2 resultsRecord results in Q2/2011, confirming our outlook

1) EBITDA defined as EBIT + depreciation – reversal of government grant

14

Headroom for announced Capex programShrinking net debt with growing business

2 3

Net financial debt 2008-Q2/20111

EUR mill.

471441

613 621 615

106125

306

365

445

256

170

365316 307

2008 2009 2010 Q1/2011 Q2/2011

Interest bearing debt Cash net financial debt

Net financial debt down toEUR 170 mill.

Total liquidity cushion of EUR 688 mill.consisting of EUR 445 mill. cash plusEUR 243 mill. of unused credit lines

1) as of 31 December/31 March/30 June

15

Outlook 2011 - based on Q2Step change in Lenzing’s structural profitability

Exceptional Q2 contributes to full yearoutlook at upper end of guidance

Continuation of short term priceconsolidation in China

Annual capacity increases in China(60,000t) well on track, ramping up insecond half 2011

Assuming NO major macro-economicchange or crisis

approx. 25% of consolidatednet income

Dividend policy

approx. 15% of sales(unchanged)

Capex

approx. EUR 360 – 390 mill.EBIT

approx. EUR 470 - 500 mill.EBITDA

approx. EUR 2.1 - 2.2 bn.Sales

New outlook 2011Figures

Appendix

17

IntroductionComplementary Management Team

Thomas G. WinklerChief Financial Officer

Friedrich WeningerChief Operating Officer

Peter UnterspergerChief Executive Officer

51 48Age 54

COO Lenzing AG since January 2009

General Manager/Vice President

Business Unit Textile Fibers for 5

years

Head of Logistic/Marketing/Sales

Lenzing AG for 10 years

21 years fiber experience

RelevantExperience

CEO Lenzing AG since January 2009

CFO Lenzing AG for 10 years

CEO South Pacific Viscose Indonesia

for 3 years

CFO South Pacific Viscose for 4

years

25 years with Lenzing AG

CFO Lenzing AG since April 2010

Executive Vice President JSFC

Sistema for 1 year

CFO T-Mobile Int. AG for 6 years

Head of Investor Relations Deutsche

Telekom AG for 3 years

20 years capital markets experience

Education Master of law and business

administration (University of Linz)

Doctorate in law

(University of Linz)

Master of Business Administration IMD

(Lausanne/Switzerland)

Graduate engineer of construction

engineering (University of Innsbruck)

Master of law (LLM)

(University of Cape Town)

Master of law

(University of Salzburg)

18

Key investment highlightsA straightforward story of leadership and growth

Cellulose Gap:a growth

opportunity2

Sustainability3

Double digitgrowth profile

6

Strongfinancials

8

Resistantto crisis

7

Costleadership

5

Globalmarket leader

High barriersto entry

4

1

19

Global fiber market 2010Global fiber demand 2010 E

73.8mill. t

Total fiber demand: approx. $150bn.Source: The Cellulose Gap, Gherzi, February 2011

Natural Fibers& NaturalPolymers

Cotton33.5%

MMC fibers5.7%Synthetic fibers

58.4%

Wool1.6%

Cellulose Gap 0.8%

73.8 m tons

20

Global market leaderTechnology leadership secures leading market shares

64%

Consumerapplications

Technicalapplications

...sets industry standard

Superior quality allows for use ofhigh-end textile machinery2

Consistent in dyeing and finishing

Global service package

# 2

17%4

Consumerapplications

High performanceapparel

...makes the world a softer place

Natural softener for fabrics

Next to skin characteristics

Can be blended with cotton

# 11

19%

High-endconsumerapplications

Specialtechnicalapplications

...the new age fiber

Environmentally friendly process

Breathable, next to skin characteristics

Can be blended with cotton

Strength (wash ability, denim process)

# 1 – Quantum leaptechnology

% ofFiber SalesQ2/20113

Key End MarketsUnique Selling PropositionMarket Positionand Market Share byProduction Capacity

99%

86%-88%

15%

Inn

ova

tion

dri

ves

sp

ecia

ltie

sS

ets

Ind

ustr

ysta

nd

ard

Source: Lenzing

1) based on estimated capacity of the only other competitor meeting type specifications BISFA + ISO 2076 on a commercialscale (10,000-12,500 metric tons p.a.)

2) e.g. airjet spinning machine allowing for 420 m/min compared to 25 m/min on regular (ring spinning) textile machines(Source: Lenzing)

3) excluding sales of fiber by-products, external sales of pulp, wood, energy

4) including Lenzing FR®

21

Cellulose Gap: a growth opportunityLimited potential to increase cotton supplyincreases demand for MMC fibers

10.1

13.8

0

10

20

30

18.9

24.8 24.727.0 28.0

1992 1996 2000 2004 2008 June 2011

2.50

2.00

1.50

1.00

0.50

0.00

Cotton prices came down from historical peaks1

but rising to a new level irrespective of recordharvest

Comparison Cotton price vs. Lenzing Viscose®

VSF EU (Textile) Cotton (FE)

Source: The Cellulose Gap, Gherzi, from April 2011: Lenzing company data, May average based on data available per30 June 2011

1) based on monthly average prices

USD/lb

Source: The Cellulose Gap, Gherzi, February 2011

Million metric tones

20001960 1980 2005 2010E 2015E 2020E

Limited growth in cotton production:effects from yield expansion leveling out

Cotton planted area expected to remainstable within narrow band (1960-2010)

Million hectares

Source: U.S. Department of Agriculture

20

25

30

35

40

45

1960 1970 1980 1990 2000 2010

22

Cellulose Gap: a growth opportunityMMCF: strong demand and limitations on cotton supply

PopulationGrowth

CAGR*) ‘10 – ’20:1.1%1

ProsperityCAGR*) ‘10 – ’20:

2.4%2

Sustainability/climate change

Cotton

Man-madeCellulosic

Fibers

SyntheticFibers

CelluloseGap

Fiber

Consumption

Shift in fiber

demand

Megatrends Input factor Supply trend

Arable land

Water

Wood

Oil

Cellulosic fibers

*) compound annual growth rate1) forecasted growth as per The Cellulose Gap, Gherzi, February 20112) forecasted growth of global real GDP per capita by Global Insight

23

Cellulose Gap: a growth opportunity9% p.a. forecast for MMCF over next 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)

3.3%102.488.373.866.351.5Total fibers

0.0%1.21.21.21.21.4Wool

CAGR

2000 2005 2010E 2015E 2020E 10E-20E

Synthetic fibers 28.4 37.0 43.1 49.9 57.9 3.0%

Cotton 18.9 24.8 24.7 27.0 28.0 1.3%

Man-madecellulosic fibers

2.8 3.3 4.2 6.2 10.0 9.1%

Total cellulosicfiber supply

21.7 28.1 28.9 33.2 38.0

Total cellulosicfiber demand

21.7 28.1 29.5 37.2 43.3

Cellulose Gap 0.0 0.0 0.6 4.0 5.3

Cellulosic fibershare(1)

42% 42% 40% 42% 42%

Million metric tons

Cellulosic fibers

CAGR ~3%

0

20

40

60

80

100

120

1960 1980 2000 2005 2010E 2015E 2020E

Source: The Cellulose Gap, Gherzi, February 2011

1) including the Cellulose Gap

24

SustainabilityGreen footprint: significantly more environmentally friendly than cotton

Process water Cooling water Surface water irrigationGroundwater irrigation

TENCEL®

AustriaCotton USAand China

263

21.8x 5,730

Water consumption

Required acreage forproduction of one metricton of fiber

Environmentalimpact of production1

m3 per metric ton of fiber Hectares per metric ton and year Relative to cotton

TENCEL®

AustriaCotton USAand China

0.24

3.4x 0,82

Lenzing GroupAvg.

Cotton USAand China

5.7%

17.5x 100%

Source: “Life Cycle Assessment of Man-made Cellulose fibers”; Li Shen, Martin Patel; 2007

1) including freshwater ecotoxicity, terrestrial ecotoxicity and others

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%

25

Push

Fabric Manufacturer

Spinning

Pull

Yarn

Blue Chip Customers – Textiles

Dyeing &Finishing

Knitting &Weaving

Garment Making Retail

High barriers to entryGlobal branded supplier to blue chip customer base

Trusted, long-term partner for global consumer brands

Global integrated marketing and sales network

Branded supplier with involvement in value chain decision

process of customers

Push: Close collaboration with manufacturers of spinning

machinery

Pull: Marketing through tailored and innovative branded

products unique to Lenzing

Customer stickiness

Blue Chip Customers – Nonwoven

26

Sales and marketingTextile fibers: key customers

39.5%

25.4%

15.2%

0%

10%

20%

30%

40%

50%

Top 5 Top 10 Top 20

Textiles % of sales by customers1

(2010)Key end customers

H&M(Sweden)

Zara (Inditex)(Spain)

IKEA(Sweden)

Marks & Spencer(UK)

Victoria’s Secret(USA)

Top 5 customers

1. Linz Textil Group(Austria)

2. Nantong No. 1(China)

3. Samil Spinning Co.Ltd. (Korea)

4. Delta MerlinSandang Tekstil(Indonesia)

5. Karsu Tekstil SanayiVe (Turkey)

Source: LAG

1) no single customer with a share of more than 5%

27

Sales and marketingNonwoven fibers: key customers

62.7%

50.3%

34.7%

0%

10%

20%

30%

40%

50%

60%

70%

Top 5 Top 10 Top 20

Nonwoven % of sales by customers1

(2010)Key end customers

Procter & Gamble(USA)

Johnson & Johnson(USA)

Costco(USA)

Walmart(USA)

Top 5 customers

1. Ahlstrom Group(Finland)

2. Holm Group(Switzerland)

3. Sandler AG(Germany)

4. PGI(USA)

5. Nan Liu Group(Taiwan)

Source: LAG

1) no single customer with a share of more than 10%

28

Sales and marketingBlue chip company’s drive demand inspecialties – TENCEL®, Lenzing Modal®

Lenzing is a trusted, long-term partner for global consumer brands

approx. 30% of textile and approx. 60% of nonwoven sales for specialty fibers (TENCEL®, Lenzing Modal®) can beattributed to key account customers

Company acts as a branded supplier with involvement in the value chain decision process of customers

Supply chain management is a strong differentiator for Lenzing

Texti

les

No

nw

oven

Selected key decision makers % demand from key accountsfor specialty fibers

Source: LAG

Others

70%

Keyaccounts

30%

Others

40%Keyaccounts

60%

29

Cost leadershipThrough integration and long-term supply contract

Long-termContract

48%

VerticalIntegration

42%

Other/Spot

10%

Pulp is the key cost driver with approx. 44% 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

Long-term contract linked to paper pulp index (not to spot price of dissolving pulp) plus applicable premium

Source: Lenzing

Indicative spot pulp procurement costvs. vertical integration5

1) cost structure based on cost of materials and purchased services amounting to EUR 628.9 mill. in 2011

2) including wood

3) other includes trading goods, other raw materials, packaging, auxiliary material

4) data refers to sourcing, including inventory build-up. Paskov volumes included under long-term contracts

5) assuming spot price of $1,800 per metric ton

Source: Lenzing

Cost structure LenzingGroup (H1/2011)1

Lenzing Group pulpsourcing (H1/2011)4

Dissolving

pulp

44%2

KeyChemicals

10%

Energy

9%

Other 3

37%

0%

20%

40%

60%

80%

100%

Spot Vertical integration

30

100

154

2008 2010 H1/2011

Pulp price development1 (2008-H1/2011)

Average dissolving pulp price2

Pulp prices historically highly volatile, while wood costs have remained comparatively stable

Lenzing LT contracts for dissolving pulp indexed to relatively stable paper pulp prices

Source: LAG

CAGR4: 36.3%

Average wood cost3

100 100109

2008 2010 H1/2011

CAGR4: 3.5%

100109

115

2008 2010 H1/2011

Paper pulp1

CAGR4: 5.7%

Source: CCF GroupSource: NBSK

1) paper pulp prices in $/metric ton prices indexed to 100 in 2008

2) average dissolving pulp prices in $/metric ton indexed to 100 in 2008

3) LAG average wood cost in EUR mill. indexed to 100 in 2008

4) CAGR calculated on the basis of 2 ½ periods

Sourcing/Vertical integrationThe dissolving pulp market is characterized by volatility

217

31

Cost leadershipThrough economies of scale

Lenzing is the only company to operate production lines with an annual capacity of 80,000 metric tons

1) based on 31 December 2010 capacities, as published by companies

Lenzing, 260k mt

Austria

Purwakarta, 240k mt

Indonesia

Indo Bharat Purwakarta, 190k mt

Indonesia

10-15% lower Capex requirements compared to

smaller plants operated by competitors

Larger production lines driving operating economies of

scale

Biggest MMC fiber plants worldwide1 Benefits from scale

Company Site Capacity

Source: Lenzing

#1

#2

#3

32

Double-digit growth profileAccelerating the fiber expansion in the future

Total pulp capacityCAGR 23.9%

ChinaCAGR 27.1%

India

USACAGR 23.7%

IndonesiaCAGR 6.6%

Europe1

CAGR 2.2%

Total capacity at

year endCAGR 10.7%

Annual capacity in ‘000 metric tons

Dissolvingpulp capacity

Paskovdissolvingpulp capacityPlannednew pulpplant

1) includes Lenzing, Heiligenkreuz and Grimsby

2) 2014E and 2015E capacity include debottlenecking and process optimization in addition to expansioncapacity

150 95 95

100 140 140

100 165 165

350 400 400

2011 2014E 2015E

530670 750

100

140140

215275

770

140

1.025

1.165

2011 2014E 2015E

40 50110

2011 2014E 2015E

140

170250

2011 2014E 2015E

80 80

2011 2014E 2015E

240325 325

2011 2014E 2015E

289

2010

289 322 322

50

240 240

c.240

339

562

c. 800

2011

2014

E

2015

E

33

570,000

-

280,000

292,000

770,000

-

40,000

40,000

60,000

140,000

240,000

250,000

150,000

100,000

Plannedcapacity –

YE 2011(metric tons)

569,000

-

280,000

289,000

710,000

-

40,000

40,000

50,000

80,000

240,000

260,000

185,000

75,000

Annualcapacity –

YE 2010(metric tons)

339

400

562,000Total pulp

maintenance Capex

180Pulp-New pulp plant2

115Pulp240,000Paskov / Czech Republic3

44Pulp322,000Lenzing / Austria

75241,025,000Total fibers

140Lenzing Viscose®80,000India

154TENCEL®50,000Mobile / USA2

-TENCEL®40,000Grimsby / UK

3TENCEL®65,000Heiligenkreuz / Austria

107Lenzing Viscose®170,000Nanjing / China2

100Lenzing Viscose®325,000Purwakarta / Indonesia

118

130

Lenzing Modal®

TENCEL®

295,000

95,000

140,000

60,000

Lenzing / Austria1

Lenzing Viscose®

Lenzing Modal®

TENCEL®

Total estimatedCapex (EUR mill.)

2011-2014Expansionproduct

Plannedcapacity –

2014(metric tons)Plant location

Expansion program EUR 1.5 bn.Significant investments envisaged to support growth strategy

1) a new TENCEL® line with 60,000 metric tons capacity will be added, however, viscose capacity will be reduced2) investments until dec. 2014 reflected, but capacity will only become operational thereafter3) dec. 2010 figures as well as 2011 figures relating to paper pulp capacity. From 2014 onwards assuming swing

capacity: 280,000 metric tons paper pulp and 240,000 metric tons dissolving pulp capacity4) excl. EUR 17 mill. debottlenecking at Lenzing, EUR 18 mill. project in Indonesia and EUR 10 mill. in Grimsby

34

-19.917.0EBIT margin (%)

-24.421.6EBITDA margin (%)


16.47867Net income

18.710991EBIT

15.7133115EBITDA1

0.0(25)(25)D&A

(14.8)(104)(122)Personnel & other operation expenses/income

6.2(324)(305)Cost of material and purchased services

12.598Work performed by the group and capitalized

n.a.93Inventory change/work in progress

2.3544532Total external sales

0.0

Change in %


Q2/2011Q1/2011(EUR mill.)

Strong financials in first two quartersExceptional Q2 supports rise of new level

1) EBITDA defined as EBIT +depreciation – reversal of government grant

35

76.678.1Gross CF as % of EBITDA

18.716.9Gross CF as % of external sales

19.65546OFCF

(41)

96

(6)

102

Q2/2011

(8.9)

5.5

n.a.

13.3

Change in %

(45)Investment cash flow2

91Operating cash flow

1Change in total WC1

90Gross CF

Q1/2011(EUR mill.)

Cash flow by quarterStrong free cash flow generation

1) including trade and other working capital2) including investment in financial assets and disposal proceeds

36

108

199

0

50

100

150

200

250

H1/2010 H1/2011

150

248

0

50

100

150

200

250

300

350

H1/2010 H1/2011

319340

0

100

200

300

400

500

600

700

H1/2010 H1/2011

Exceptional growth profileLenzing continues to growth successfully

821

1.076

0

500

1000

1500

H1/2010 H1/2011

Fiber production

1,000‘s metric tons

84%31% 65%

Total external sales

EUR mill.

EBITDA

EUR mill.

EBIT

EUR mill.

7%

37

(26)2323315444Engineering

--(13)(25)(37)(33)Consolidation

(1)29291293583453Textile fibers

31

31

31

55

27

5

25

Growth rateH1/H1 (%)

1.076

92

968

152

816

21

212

H1/2011

2544532821Total external group sales

4474570Plastics Products

481

72

409

10

106

Q1/2011

487

80

407

11

105

Q2/2011

1741Total fibers segment sales

1198Other fiber segment sales2

(1)643Total fibers only sales

1020Other1

(1)170Nonwoven fibers

Breakdown of fibers segment sales

Growth rate (%)Q1/Q2H1/2010(EUR mill.)

Topline breakdown

1) includes sales of sodium sulfate and black liquor2) includes external sales of pulp, wood and energy

38

18.513.1EBIT margin (%)

23.018.3EBITDA margin (%)


88.314577Net income

84.3199108EBIT

65.3248150EBITDA1

15.9(51)(44)D&A

12.4(253)(225)Personnel & other operation expenses/income

32.4(629)(475)Cost of material and purchased services

13.31715Work performed by the group and capitalized

n.a.12(1)Inventory change / work in progress

31.11.076821Total external sales

6.6

Change in %


H1/2011H1/2010(EUR mill.)

Strong financials H1/2011Record H1 results underpins continued growth and profitability


39

Increase in raw materialsoffset by price increasesPulp is key, but with lead effects

36233172Other2

38275199Dissolving pulp1


5858as % of external sales

32629475Total cost of material and purchased services

3736as % of total cost of material and purchased services


136053Energy


226251Key chemicals


Change in %H1/2011H1/2010(EUR mill.)

1) including cost for wood2) other includes trading goods, other raw materials, packaging, auxiliary material

40

Other opex in H1/2011 showing stabledevelopmentRepresenting approx. 1/3 of total cost and are very stable

1) externally purchased

12(253)(225)Personnel & other operating expense




17(116)(99)Total other operation expenses

2(57)(56)Other

70(17)(10)Service and maintenance and other purchased services1

17(7)(6)Commissions and advertising costs

26(34)(27)Freight outward

Other operating expenses

-1315as % of external sales

9

Change in %

(137)(126)Total personnel expenses

H1/2011H1/2010(EUR mill.)

41

7781Gross CF as % of EBITDA

1815Gross CF as % of external sales

n.a.1029OFCF

-

(85)

187

-

(5)

192

H1/2011

n.a.

(27)

48

n.a.

n.a.

57

Change in %

(1)Discontinued operations

(116)Investment cash flow2

126Operating cash flow

(4)Discontinued operations

8Change in total WC1

122Gross CF

H1/2010(EUR mill.)

Cash flow by H1/2011


42

2,1571,963Total assets

-36Assets of discontinued operations

948732Current assets

387249Cash and cash equivalents

85Investments

8059Other receivables and assets

1615Current taxes

216182Trade receivables

242223Inventories

1,2091,195Non-current assets

23Other non-current assets

1110Deferred taxes

7167Other financial assets

2725Investments in associates

1,0161,003Property, plant and equipment

8388Intangible assets

30 June 201131 December 2010(EUR mill.)

H1/2011 balance sheet – assets

43

12161Bank loans and other loans

135134Trade payables

309238Other provisions and liabilities and others

565433Current liabilities

852704Share of shareholders of Lenzing AG

3328Non-controlling interests

671730Non-current liabilities

-35Liabilities of discontinued operations

2,1571,963Total equity and liabilities

176176Provisions, deferred taxes and others

12Trade payables

494552Bank loans and other loans

3534Government grants

885732Equity

713614Retained earnings and other reserves

(23)(1)Currency translation reserves

13464Capital reserves

2827Common stock

30 June 201131 December 2010(EUR mill.)

H1/2011 balance sheet – equity & liabilities

44

70

232

0

50

100

150

200

250

2000 2010

108

331

0

50

100

150

200

250

300

350

2000 2010

334

653

0

100

200

300

400

500

600

700

2000 2010

599

1766

0

500

1000

1500

2000

2000 2010

Double-digit growth profileLenzing has managed growth successfully in the past

Fiber production

1,000‘s metric tons

CAGR7% CAGR

13%

CAGR11%

CAGR12%

Total external sales1

EUR mill.

EBITDA1

EUR mill.

EBIT1

EUR mill.

Double-digit growth p.a. over last 10 years

1) 2000 based on US GAAP; 2010 based on IFRS

45

1) excl. Filaments business


13.19.49.8EBIT margin (%)

18.715.415.1EBITDA margin (%)

45.0(8.4)5.4External sales growth (%)

42.8%1596478Net income after minorities

46.7%1706779Net income

33.6%232114130EBIT

28.3%331188201EBITDA2

18.0%(103)(78)(74)D&A

8.4%(434)(340)(369)Personnel & other operation expenses/income

11.8%(1,029)(685)(823)Cost of material and purchased services

(4.1 %)343137Work performed by the group and capitalized

n.a.(4)(32)30Inventory change / work in progress

15.3%1,7661,2181,329Total external sales

653

2010

10.0%569540Production man-made cellulose fibers (kt)

CAGR 2008-20102009 adj.12008(EUR mill.)

Strong financialsRecord results in 2010, a logical continuation post financial crisis

46

9.0%5.3%5.1%5.8%Margin

42.8%159646478Net income after minorities

9.6%5.5%5.4%5.9%Margin

46.7%170676779Net income

n.a.(7)(13)Income form discontinued operations

3.9%(40)(23)(22)(37)Tax

n.a.(2)(1)-1Result from terminable non-controlling interest

(20.0%)(16)(14)(15)(25)Finance cost

(42.3%)3339Income from invest. in associates & other income

8.0%

101

33

(146)

(85)

(252)

(704)

1

30

147

1,078

1,255

20091

9.8%

130

91

(148)

(74)

(244)

(823)

1

51

181

1,096

1,329

2008

13.1%9.4%Margin

33.6%232114EBIT

(9.8%)7434Other operating income and other

21.4%(218)(140)Other operating expenses

18.0%(103)(78)D&A

3.0%(259)(235)Personnel

11.8%(1,029)(685)Cost of material and purchased services

0.0%11Other

(13.7%)3830Engineering

(11.1%)143109Plastic Products

20.2%1,5841,078Fibers

15.3%1,7661,218Total External Sales

CAGR 2008-201020102009 adj.2(EUR mill.)

Consolidated group P&L – external sales

1) reported, incl. filaments business2) excl. filaments business3) other = work performed by group, changes in inventory & cost of material purchased

47

1) externally purchased

10.3%477375392Personnel & other operating expense

27.030.829.5as % of external sales


55.1(5.2)2.6growth %


21.4%218140148Total other operation expenses

32.1%896351Other

18.6%451632Service and maintenance and other purchased services 1

7.6%221819Commissions and advertising costs

14.8%624347Freight outward

Other operating expenses

10.4(3.8 )6.5growth %


259

2010

3.0%235244Total personnel expenses

CAGR 2008-20102009 adj.12008(EUR mill.)

Other opex showing stable developmentRepresenting approx. 1/3 of total cost and are very stable

48

88.675.078.6Gross CF as % of EBITDA

16.611.611.9Gross CF as % of external sales

n.a.1393(94)OFCF

(1)

(157)

251

7

103

141

2009 adj.

(1)

(279)

294

(9)

11

293

2010

n.a.2Discontinued operations

37.8%(147)Investment cash flow2

142.5%50Operating cash flow

n.a.1Discontinued operations

n.a.(109)Change in total WC1

36.2%158Gross CF

CAGR2008-20102008(EUR mill.)

Cash flow


49

1,9631,4471,416Total assets

36--Assets of discontinued operations

732470507Current assets

249105106Cash and cash equivalents

520-Investments

593947Other receivables and assets

151210Current taxes

182119135Trade receivables

223176210Inventories

1,195977909Non-current assets

222Other non-current assets

1032Deferred taxes

671913Other financial assets

252317Investments in associates

1,003842781Property, plant and equipment

888893Intangible assets

20102009 adj.2008(EUR mill.)

Balance sheet – assets

50

1,9631,4471,416Total equity and liabilities

35--Liabilities of discontinued operations

433291339Current liabilities

238160143Other provisions, liabilities and others

1349060Trade payables

1099Other loans

5132127Bank loans and overdrafts

730541446Non-current liabilities

176136124Provisions, deferred taxes and others

256Trade payables

333532Other loans

519365303Bank loans

342932Government grants

732585580Equity

28923Non-controlling interests

704576557Share of shareholders of Lenzing AG

614504482Retained earnings and other reserves

(1)(19)(16)Currency translation reserves

646464Capital reserves

272727Common stock

20102009 adj.2008(EUR mill.)

Balance sheet – equity & liabilities

51

1) including cost for wood2) other includes trading goods, other raw materials, packaging, auxiliary material


50.1(16.7)16.0growth %

11.8%1,029685823Total cost of material and purchased services

13.3%435275339Dissolving pulp1

42.340.141.2as % of total cost of material and purchased services

(4.4%)10593115Key chemicals


5.6%1069595Energy




18.2%383223274Other2

2010 CAGR 2008-20102009 adj.12008(EUR mill.)

Stable gross marginsPulp is key, but with lead effects

52

Clear TargetsOverview of set targets 2010 - 2014

Double-digit topline CAGR

Invest EUR 1.5bn.

Expand fiber capacity toapprox. 1.2 million tons

Grow pulp production toapprox. 800,000 metric tons

Growth targets Profitability targets/floors

Margin expansion

Net debt/EBITDA <2.5x

ROCE >12%

Innovation targets

Spend industry leadingapprox. 1.5% of sales onR&D

>33% of total MMC fiberproduction in specialty fibersTENCEL® and Modal® (incl.FR)

Leading innovation withresearch and developmentfocus

leading fiber innovation - lenzing.com · textile fibers1 external sales (eur mill.) ... (softened...

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