EANS-Adhoc: Lenzing AG / Lenzing Group: Difficult Market Environment in the First Quarter of 2013 as Expected

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet/3-month report
08.05.2013

Weak fiber selling prices, Lenzing counteracts trend with cost
savings EBITDA of EUR 64.5 mn above expectations Unchanged guidance
for the entire year 2013

The ongoing difficult market environment for man-made cellulose
fibers shaped the business development of the Lenzing Group in the
first quarter of 2013 as expected.Consolidated sales amounted to EUR
496.5 mn, a decline of 6.0% from the comparable figure of EUR 528.2
mn in the prior-year quarter. However, this also includes the shift
of about EUR 25 mn from external to internal sales at the Paskov pulp
plant. In a year-on-year comparison of total fiber sales, the selling
price decline could almost be completely compensated by the higher
fiber sales volumes in the first quarter of 2013.

Although consolidated earnings before interest, tax, depreciation and
amortization (EBITDA) in the first quarter of 2013 fell to EUR 64.5
mn (1- 3 2012: EUR 93.1 mn), the EBITDA margin at 13.0% (1-3 2012:
17.6%) was higher than expected, and was slightly above the guidance
for the first quarter of 2013. Earnings before interest and tax
(EBIT) of the Lenzing Group declined by 46.1% to EUR 36.2 mn (1-3
2012: EUR 67.2 mn), comprising an EBIT margin of 7.3% in the first
three months of the year (1-3 2012: 12.7%).

"Lenzing acquitted itself quite well in the first quarter of 2013. We
counteracted the more difficult market conditions in a timely manner
by implementing the cost optimization project excelLENZ, and already
achieved the first cost improvements.Moreover, we are strengthening
our specialty strategy by putting the focus on our specialty fibers
Lenzing Modal®and TENCEL®. A further priority is the optimization of
our cash management in the Lenzing Group by postponing maintenance
investments for the time being which are not absolutely necessary",
says Peter Untersperger, Lenzing's Chief Executive Officer, in
explaining the current approach.

In the first quarter of 2013, total fiber sales volumes amounted to
about 216,000 tons, at about the same level as the fourth quarter of
2012 but approximately 13% higher than the prior-year quarter. This
increase can be attributed to the new production capacities coming on
stream in Indonesia and the USA.A fire took place at the TENCEL®fiber
production site in Heiligenkreuz in March, which will likely result
in a loss of production amounting to some 5,000 tons in 2013 as a
whole.

The strategic expansion program of the Lenzing Group was implemented
as planned in the first quarter of the year. Rapid progress is being
made on construction of the large TENCEL®factory at the Lenzing site.
The conversion of the Biocel Paskov pulp plant from a paper to a
swing capacity paper and dissolving pulp plant is also proceeding on
schedule. On balance, capital expenditure in the form of investments
in property, plant and equipment and intangible assets totaled EUR
56.5 mn in the first quarter of 2013, above the prior-year level of
EUR 52.9 mn.

Adjusted Group equity as at March 31, 2013 increased once again,
rising slightly by 1.7% to EUR 1,172.9 mn from EUR 1,153.1 mn at the
end of 2012. This corresponded to an excellent adjusted equity ratio
of 45.1% of the balance sheet total (December 31, 2012: 43.8%).

Outlook

From today's perspective no change in the current price situation on
the global fiber market is expected in the coming months, nor is any
major impetus to demand likely to come from the global economy for
the time being. The market is being shaped by the ongoing high cotton
inventories as well as the cotton policy of China which is difficult
to predict. A sideways movement is expected with respect to raw
material prices, especially for pulp.

Business development in the second quarter of 2013 is expected to be
similar to the performance of the Group in the first quarter as a
consequence of the continued implementation of countermeasures. The
guidance for EBITDA, the most important performance indicator, has
been set at EUR 65 - 70 mn in the second quarter of 2013, even
slightly above first quarter earnings. Similarly, the solid balance
sheet of the Lenzing Group comprises a good basis for the ongoing
large-scale investments.

Lenzing confirms its guidance for the entire financial year which was
published in March 2013.

Key Group indicators
(IFRS)

(EUR mn) 1-3/2013 1-3/2012
Consolidated sales 496.5 528.2
EBITDA1 64.5 93.1
EBITDA margin1 in % 13.0 17.6
Earnings before interest 36.2 67.2
and tax (EBIT)1
EBIT margin1 in % 7.3 12.7
Profit for the period 20.9 48.4
CAPEX (investments in

property, plant and equipment, intangible
56.5 52.3 assets and non-controlling interest)

31/03/2013 31/12/2012
Adjusted equity ratio2in % 45.1 43.8
Employees at period-end 7,062 7,033

1) Before restructuring
2) Equity incl. government grants less prop. deferred taxes

Segment reporting3

(EUR mn) 1-3/2013 1-3/2012
Segment Fibers
Sales 447.1 474.4
EBITDA 58.9 87.2
Segment Engineering
Sales 35.3 30.0
EBITDA 2.2 2.5
Segment Discontinued
Operations
Sales 26.3 32.5
EBITDA 2.9 3.1
Segment Other
Sales 13.3 13.9
EBITDA 0.6 0.9

3) The disposal of the Business Unit Plastics resulted in a
restructuring of the Lenzing Group's segment reporting. Lenzing now
reports on its Segment "Fibers", which encompasses the internal
business units Textile Fibers, Nonwoven Fibers, Pulp and Energy. The
activities of Lenzing Technik are assigned to the Segment
"Engineering". The Segment "Discontinued Operations" includes the
disposed of Business Unit Plastics as well as European Precursor
(EPG), the terminated joint venture with SGL Carbon and Kelheim
Fibres. The Segment Other mainly encompasses the activities of Dolan
GmbH/Kelheim (synthetic fibers, part of the Segment Plastics Products
up until now) as well as the educational and training center
Bildungszentrum Lenzing (BZL).

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
--------------------------------------------------------------------------------

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