EANS-Adhoc: Lenzing AG / Lenzing Group: Second Best Nine-Month Results Despite Headwinds

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quarterly report

15.11.2012

-New record fiber shipment volumes
-Lower average fiber selling prices as expected
-Guidance confirmed for the entire year 2012

In spite of economic headwinds, the Lenzing Group succeeded in
achieving the second best business results in its history. However,
as expected, the company could not match the record performance of
the previous year. Fiber shipment volumes rose by 12% year-on-year,
whereas average selling prices for Lenzing fibers fell by about 11%,
as anticipated.

Consolidated sales of the Lenzing Group in the first nine months of
2012 amounted to EUR 1,567.5 mn, a drop of 1.5% from the prior-year
level of EUR 1,592.2 mn. Consolidated EBITDA (earnings before
interest, tax, depreciation and amortization) in the first three
quarters was the second highest in the company's history, totaling
EUR 281.5 mn, down 22.4% from EUR 362.9 mn in Q1-3 2011. The EBITDA
margin remained at an attractive double-digit level of 18.0% (Q1-3
2011: 22.8%). Earnings before interest and tax (EBIT) were also at a
gratifying level of EUR 203.4 mn (Q1-3 2011: EUR 289.7 mn). This
corresponded to an EBIT margin of 13.0% for the Lenzing Group in the
first nine months of 2012, compared to 18.2% in the prior-year
period.

"In spite of the difficult market conditions, we were able to achieve
record sales of 590,000 tons of fibers in the first three quarters of
2012 against the backdrop of the full utilization of our production
capacities. This underlines the world market leadership of the
Lenzing Group based on quality, innovation, a global presence and
optimal service", says Lenzing's Chief Executive Officer Peter
Untersperger.

Adjusted Group equity totaled EUR 1,152.0 mn as at the end of
September 2012, a rise of 9.9% from the comparable figure of EUR
1,048.1 mn at the end of 2011. The adjusted equity ratio was 48.5% as
at September 30, 2012 (December 31, 2011: 44.8%). As a result of the
lively investment activity within the Group, net financial debt
increased to EUR 295.3 mn at the end of the third quarter (December
31, 2011: EUR 159.1 mn). Accordingly, net gearing continued to be a
very low level of 25.6% (December 31, 2011: 15.2%).

Outlook Lenzing confirms its guidance for the entire year 2012, which
was published as part of the half-year results. As a consequence,
Lenzing is well on track to achieve the second best business results
in the company's history in 2012 as a whole. However, due to the
current market developments, a decline of average fiber selling
prices to about EUR 1.85 per kilogram is expected. Accordingly,
Lenzing now expects that it will likely reach the lower end of the
targeted range with respect to its performance indicators for the
entire year 2012. This means consolidated sales are anticipated to be
within a range of EUR 2.1-2.15 bn, whereas EBITDA will amount to EUR
350-400 mn and EBIT will total somewhere between EUR 240-290 mn.
Capital expenditure for 2012 is budgeted to be about EUR 325 mn.

Long-term megatrends such as population growth, increasing per capita
fiber consumption in the emerging markets and growing demand for
resource-saving, environmentally compatible fibers remain intact, and
are good arguments in favor of man-made cellulose fibers. However,
this long-term growth trend does not exclude the possibility of
repeated phases of delayed or accelerated economic growth. Lenzing
remains committed to its long-term growth strategy.

Key Group indicators (IFRS) in EUR mn
1-9/2012 1-9/2011
Consolidated sales 1,567.5 1,592.2
EBITDA 281.5 362.9
Earnings before interest and tax (EBIT) 203.4 289.7
Earnings before tax and minority interest (EBT) 199.8 277.0
Profit for the period 155.1 217.9
EBITDA margin in % 18.0 22.8
EBIT margin in % 13.0 18.2
Gross cash flow 198.5 317.4
Investments in intangible assets and property,
plant and equipment 213.7 130.5

30/09/2012 31/12/2011
Adjusted equity ratio* in % 48.5 44.8
Employees at the end of the period 6,958 6,593

*Equity incl. government grants less prop. deferred taxes

Segment reporting in EUR mn 1-9/2012 1-9/2011
Segment Fibers
Sales 1,414.3 1,436.1
EBITDA 262.1 345.0
Earnings before interest and tax (EBIT) 187.3 275.9
Segment Plastics Products
Sales 126.0 135.5
EBITDA 11.2 13.3
Earnings before interest and tax (EBIT) 6.8 8.3
Segment Engineering
Sales 89.3 79.8
EBITDA 6.1 7.0
Earnings before interest and tax (EBIT) 4.8 5.9

Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 7672-918-2713
mailto:a.guldt@lenzing.com

end of announcement euro adhoc
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issuer: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: a.guldt@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English