Press Conference. Results of the First Half-Year Vienna, August 22, 2012

Transcription

1 Press Conference Results of the First Half-Year 2012 Vienna, August 22, 2012

2 Highlights Q1 and Q2/2012 Lenzing performed very well in a difficult market environment in the first half of 2012 Ambitious business targets were fully achieved Q2 EBITDA margin improved compared to Q1 Half-year earnings higher than in 2010 but record level of 2011 is no longer attainable New record shipment volume of 199,000 tons of fibers in Q Viscose fiber prices in Q2 much less volatile than cotton Cotton A price index: minus 22% 1 Viscose fiber spot price in China: minus 8% 2 Average Lenzing fiber selling price in Q2 stable compared to Q1 1) Cotton A-Index: of cents/ib to 80.3 cents/ib 2) CCF: from RMB 15.,850/ton to RMB 14,600/ton 2

3 Market environment Snapshot at the middle of 2012 Selected industrial production data (May/June 2012 data, year-on-year in %) 12,0 10,0 8,0 6,0 4,0 2,0 - -2,0 4,7 9,5 3,0 5,9 Key issues: Continuing uncertain macro-economic outlook and European sovereign debt crisis Asian exports impacted by weak demand from Europe and USA US growth slowed down and could slacken Volatile exchange rates Indonesia: Slower but still attractive growth Textile industry exports in Q1 down 5.2% (following 18.2% increase in Q1/2011) 1 Turkey: Healthy textile and nonwovens industry Highly attractive domestic market -4,0 US China Indonesia Turkey Euro Area -2,8 Source: fibre2fashion.com, July 24, Source: Haver Analytics, July 2012 Euro Area, Turkey, Indonesia: May 2012 data; US, China: June 2012 data

4 China s locomotive still steaming ahead But significant weakening of export momentum Industrial production in China (January to July 2012), growth rates in % 14,0 12,0 10,0 8,0 6,0 4,0 2,0 0, Jan/Feb March April May June July Economic growth only 7.6% in Q2 Textile industry shows signs of weakening but is still at a high level Textile exports January-May 2012 only up 2% 1 after double-digit growth rates in the prior year Growth of the entire textile industry in July % 1 again compared to July 2010 Investments in the textile chain are still restrained, but are increasing again slightly Effects of two successive interest rate reductions in China remain to be seen Chinese Yuan gains more than 5% in value vis a vis the Euro in the first half of 2012 Drastic change first expected in the 4 th quarter of 2012 at the earliest Source: National Bureau of Statistics of China, ) Source: Xinhua, June 30, 2012: January May 2012, year-on-year 4

5 Market environment for cellulose fibers Price premium 1 of Lenzing fibers compared to cotton Cotton prices stabilized at a higher level again over the last several weeks Historical 15% to 20% price premium 2 of Lenzing Viscose to cotton established once again No return to earlier cotton prices despite high inventories 3,5 3 2,5 2 1,5 1 0,5 21.5% 16.8% 15.2% 15.1% -33.0% 28.7% 19.1% 5.4% 8.3% -20.6% 3.5% 4.9% 17.0% 15.4% -24.6% -2.17% Former sea level 0 EUR/kg 1. Q Q Q Q Q Q Q Q Q Q Q Q Q. 12 April Q. 12 July 12 Lenzing Viscose Cotton A-Index 1) Lenzing standard viscose vs. cotton price (EUR/kg) 2) Historically standard viscose fibers are traded at a price premium of 15-20% compared to the cotton price based on the Cotton A Index spot market price in EUR/kg; Bloomberg: Cotlook A; Reuters COT-INDX-FE 5

6 Q2 as expected Expansion program enabled sales increase to almost 200,000 tons in Q2 Average price (EUR/kg) 6 1) Sales volumes, not product volumes 2) External sales excl. sales with co-products and external pulp, wood and energy sales

7 The Lenzing share Jan. 2, Aug.16, 2012 Development in 2012 better than the ATX index Lenzing once again listed on the Sustainability Index of the Vienna Stock Exchange LAG: +18.3% ATX: +8.9% 7 Jan. 2, 2012 Aug. 16, 2012

8 Segment Fibers

9 New record volume: 390,000 tons Record shipment volume in H1 2012: 13% more fibers sold than in H Lenzing succeeded in counteracting the weak market Demand for Lenzing fibers is fully intact Complete capacity utilization at all fiber and pulp production plants New record for TENCEL, Modal weaker than in the recent past 9

10 Overview of capacity expansion EUR 1.6 bn investment program up until 2015 Fiber capacity Plant Planned capacity Dec. 31, 2011 (tons) Planned capacity Dec. 31, 2012 (tons) Planned capacity Dec. 31, 2013 (tons) Planned capacity Dec. 31, 2014 (tons) Planned capacity Dec. 31, 2015 (tons) Lenzing / Austria 250, , , , ,000 Lenzing Viscose 150, , ,000 (Q2) 110, ,000 Lenzing Modal 100, , , , ,000 TENCEL ,000 60,000 Purwakarta / Indonesia, Lenzing Viscose 240, ,000 (Q4) 325, , ,000 Nanjing / China, Lenzing Viscose 140, , , , ,000 Heiligenkreuz / Austria, TENCEL 60,000 60,000 70,000 70,000 70,000 Grimsby / UK, TENCEL 40,000 40,000 40,000 40,000 40,000 Mobile / USA, TENCEL 40,000 50,000 (Q2) 50,000 50, ,000 India, Lenzing Viscose ,000 Total fiber production 770, , , ,000 1,185,000 10

11 TENCEL at the Lenzing site Expansion program Construction start in June 2012 Construction time about 24 months Investment costs: EUR 130 mn (excl. infrastructure) Production capacity: 60,000 tons p.a. Additional Employees:

12 PT. South Pacific Viscose/Indonesia Expansion program Early completion of fifth production line expected Start-up of the new facility planned in Q Thus increase of annual nominal capacity at SPV to 320,000 tons p.a. (240,000 tons p.a. at present) Subsequent debottlenecking: +5,000 tons to 325,000 tons 12

13 TENCEL plant in Mobile/USA Expansion program Increase of production capacity from 40,000 tons to 50,000 tons p.a. Expansion program completed TENCEL fibers mainly for the U.S. market, of which 60% for nonwoven applications 13

14 Lenzing Modal Marketing focal points ProModal campaign in Hong Kong Large-scale advertising campaign of the longstanding customer A- Fontane for Lenzing Modal home textiles Road show, advertisements, billboards, TV spots, sponsoring of a popular TV series 14

15 TENCEL Marketing focal points Anniversary: 20 years TENCEL on the marketplace Denim TENCEL makes jeans soft to the touch and guarantees perfect wearing comfort TENCEL significantly improves the environmental compatibility of jeans TENCEL in fabrics Preparation for the new TENCEL plant in Lenzing Shirts, bed linen and other woven goods 15

16 Nonwovens Marketing focal points Branding cooperation agreements Pamperino baby wipes The Lenzing Viscose logo has been on the packaging since the beginning of 2012 Partner: Avangard, Russia New generation of panty liners TENCEL liner is the first product with a top sheet made of 100% TENCEL fibers Partner: Yejimiin, Korea 16

17 Segments Plastics Products & Engineering

18 Segment Plastics Products Market successes for high-tech multi-layer laminates for the cladding of insulated pipelines and laminated films for insulating materials High raw material costs negatively impact earnings EUR mn 1-6/ /2011 Change in % Total sales Segment EBITDA Segment EBIT

19 Segment Engineering Order intake at a high level during the entire first half-year Fiber and pulp technology business profited from the extensive investment activity by the Lenzing Group Slight weakening of incoming orders in other business areas as of the middle of the year EUR mn 1-6/ /2011 Change in % Sales Segment EBITDA Segment EBIT

20 Group results H1 2012

21 Good first half-year 2012 Below record H1 results in 2011 but above H EBITDA margin of 18.2 percent above the long-term average Ongoing attractive EBIT margin of 13.3 percent ,8 199,2 193, , ,1 --- H level EUR mn / / /2012 EBITDA EBIT 21

22 Precision success with guidance for 2012 Guidance for 2012 H Guidance fulfilled Sales about EUR bn EUR 1.1 bn EBITDA about EUR mn EUR mn EBIT about EUR mn EUR mn Sales volumes about 810,000 tons 390,000 tons Guidance Q2/2012 Earnings Q2/2012 Guidance fulfilled EBIDTA Q2 about EUR 100 mn EUR 100,6 Mio Fifth successive quarter in which expectations were fulfilled or exceeded (since Re-IPO in June 2011) Lenzing has built up a track record in a volatile environment 22

23 Solid H IFRS 1-6/ /2011 Change in % Sales (EUR mn) 1, , EBITDA (EUR mn) EBITDA margin (%) EBIT (EUR mn) EBIT margin (%) Profit for the period (EUR mn) Earnings per share (EUR) As expected no repetition of record results posted in H Sales: Additional volume came close to offsetting the price decline Profit for the period of over EUR 100 mn in H

24 Balance sheet IFRS June 30, 2012 Dec. 31, 2011 Change in % Total assets (EUR mn) 2, , Adjusted equity 1) (EUR mn) 1, , Adjusted equity ratio (%) Net financial debt (EUR mn) Net gearing (%) Total cash/cash equivalents, securities (EUR mn) Unused lines of credit (EUR mn) Equity of close to EUR 1.1 bn Net gearing below 25% Freely disposable funds of almost EUR 600 mn 1) Incl. investment grants less prop. deferred taxes 24

25 New outlook for the entire year 2012 Q3/2012: Weakest quarter and limited visibility for Q4 Outlook 2012 Previous outlook Sales About EUR bn EUR bn EBITDA About EUR mn EUR mn EBIT About EUR mn EUR mn Sales volumes About 810,000 tons (unchanged) 810,000 tons CAPEX About EUR 325 mn EUR 350 mn Dividend policy About 25% of the Group profit for the period (unchanged) 25% Tax rate About 22-24% n.a. Expectations Q3/2012 Weaker price environment impacts us with a time delay Average fiber price between EUR 1.95 and 2.00/kg EBITDA between EUR 85 and 90 mn Sales volumes of about 200,000 tons Lower tax rate due to Group taxation with B & C Relevant factors for Q4/2012 Macro-economic environment Price environment First reliable data on cotton production 2012/2013 Start-up phase of the 5th production line (Indonesia) 25

26 Thank you for your attention!

27 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 deviate 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. 27