Shaping the future
Strengthen the core
Master the crisis
Lenzing
Investor Presentation
Results 01-03/2024 May 8, 2024
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.
- Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management's current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
- None of Lenzing AG or any of its affiliates, advisors or representatives shall have any liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document.
- Certain figures in this presentation have been rounded in accordance with commercial principles and practice. Such figures that have been rounded in various tables may not necessarily add up to the exact total given in the respective table.
- Definition and further details on the calculation of financial key indicators can be derived from the Half-Year Report and the Annual Report. These reports are also available online on the website of the Lenzing Group www.lenzing.comin the section "Investors".
www.lenzing.com | 7 May 2024 - 2 |
Agenda
1 | Executive Summary |
2 | Market update |
3 | Financials |
4 | Performance program |
5 | |
Outlook | |
6 | Q&A |
Stephan Sielaff
Stephan Sielaff
Nico Reiner
Stephan Sielaff
Stephan Sielaff
All
www.lenzing.com | 7 May 2024 - 3 |
Lenzing continues to improve its top- and bottom-line performance in a still weak market environment
Key developments
Recovery of generic markets still lacking; positive impact from performance program
- No sustainable recovery of generic markets - prices remain under pressure
- Good progress of holistic performance program:
- Cost: Savings ahead of plan
- Topline: Fiber sales volumes further increased
- Chief Transformation Officer to further advance and accelerate performance program
Q1 2024 financial results
Increase in sales and earnings due to performance program
- Revenue up by 6% vs. Q1 2023 to EUR 658 mn
- EBITDA increased by EUR 42 mn vs. Q1 2023 to EUR 71 mn
- Net result1 improved to EUR -32 mn (vs. EUR -80 mn in Q1 2023)
- Strong FCF of EUR 87 mn positive for third time in a row,
EUR > 200 mn higher vs. Q1 2023
2024 outlook
Laser focus on exploiting full potential of the performance program
- Q1 2024 delivered better than expected for Lenzing
- Cautious outlook on generic fiber market development in 2024
- Well on track performance program and strengthening orderbook expected to further improve operational results in Q2 to Q4 2024 compared to Q1 2024
- Lenzing Group therefore confirms that it expects EBITDA for the 2024 financial year to be higher than in the previous year
NOTES: 1) Net result after minorities and hybrid bond
www.lenzing.com | 7 May 2024 - 4 |
Market update
www.lenzing.com
Global demand for apparel started slightly negative
Q1 2024 QoQ
Q1 2024 apparel retail sales1 breakdown by region
in %, Q1 2024 vs. Q4 2023, inflation-adjusted, seasonally adjusted
United States | World | Key challenges and influencing factors Q1 2024 | |
+ 4 % | - 1 % | ● | Consumer confidence |
● | Inflationary pressure | ||
Europe | ● | Ongoing discounts | |
- 4 % | ● | Supply chain challenges | |
● | Uncertainty | ||
● | Weather | ||
China
+ 1 %
NOTES: 1 Global estimate based on 42 countries accounting for 84 % of global 2019 apparel sales. Where available incl. online (China), otherwise excl. online. Europe estimate based on weighted average of 20 countries. All data in local currency, partly adjusted for FX SOURCE: US Census Bureau; Eurostat; China National Bureau of Statistics; team analysis (accessed April 30, 2024)
www.lenzing.com | 7 May 2024 - 6 |
Generic viscose prices with no sustainable relief yet
Fiber and DWP market prices in China, Q1/2022-Q1/2024, USD/kg (excl. VAT)
Viscose
Viscose prices stepped up in Q1/2024 due to good demand before Chinese New Year holidays, but then started to soften again
Cotton
International cotton prices rallied in February rather pushed by speculation than based on market fundamentals. Since then, prices normalized
Dissolving hardwood pulp (DWP)
DWP prices increased throughout the first quarter supported by both tight supply and favorable demand from stable downstream operation
2.2 |
2.0 |
1.8 |
1.6 |
4.0 |
3.0 |
2.0 |
1.0 |
1.4 | |||||||||
1.2 | |||||||||
1.0 | |||||||||
0.8 | |||||||||
1/22 | 4/22 | 7/22 | 10/22 | 1/23 | 4/23 | 7/23 | 10/23 | 1/24 | 4/24 |
SOURCE: CCFG; Cotlook
www.lenzing.com | 7 May 2024 - 7 |
Energy and NaOH market prices remain elevated
Comparison of selected energy and NaOH1 market price levels
Change in Percentage Q1 2024 vs. 2020 (averages)
Energy | NaOH |
+194%
+63%
+54%
+78%
+57%
+28%
Coal China | Coal Indonesia | Gas Europe | North West Europe | China | South East Asia |
NOTE: All prices indexed based on reported currency 1) Caustic soda
SOURCE: IHS Markit; CCFG; Argus; ICE; NYMEX
www.lenzing.com | 7 May 2024 - 8 |
Financials
www.lenzing.com
Further improvement in Lenzing fiber sales volumes in weak market
Development of fiber sales volumes for Lenzing 2023 - Q1 2024
+24%
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 |
Holistic performance program drives sales volumes increase, e.g.:
- Outperformance of sustainable fibers such as LENZING™ ECOVERO™ with > 50 % growth since Q1 2023
www.lenzing.com | 7 May 2024 - 10 |
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Lenzing AG published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 05:36:06 UTC.