EANS-Adhoc: Lenzing AG / Lenzing Group: Most Successful First Half-Year in the Company´s History

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6-month report

23.08.2011

-Outstanding second quarter 2011
-Positive outlook for 2011 confirmed

The Lenzing Group can once again report record results, and looks
back at the most successful first half-year in the company´s history.
Following a very good first quarter 2011, sales and earnings could be
significantly surpassed again in the second quarter of 2011. Thus
Lenzing has set its guidance for the entire year 2011 at the upper
end of the initial guidance announced in the first quarter, thus
forecasting an EBITDA of EUR 470 mill. to EUR 500 mill. and
consolidated sales between EUR 2.1 bill. and EUR 2.2 bill.

In the first half of 2011, consolidated sales rose by 31.0%, from EUR
821.4 mill. to EUR 1,076.2 mill. The reasons underlying the revenue
increase were mainly considerably higher fiber prices compared to the
prior-year level, as well as the higher fiber shipment volumes and
the consolidation effects from the acquisition of the Biocel Paskov
pulp plant.

Earnings before interest, tax, depreciation and amortization (EBITDA)
in the first six months of 2011 rose by 65.1% to the new record level
of EUR 247.8 mill. This resulted in an all-time high EBITDA margin of
23.0% (H1 2010: 18.3%). Operating profit (EBIT) was almost doubled,
rising by 84.5% to EUR 199.2 mill. (compared to the already excellent
EBIT of EUR 108.0 mill. achieved in the first half of 2010). This
corresponds to an EBIT margin of 18.5% (H1 2010: 13.1%).

Outstanding second quarter 2011 The second quarter of 2011 featured
consolidated sales of EUR 544.1 mill. and an EBITDA of EUR 132.9
mill. (margin of 24.4%), an outstanding performance which comprises
the best quarterly results in the company´s history. The EBIT of EUR
108.5 mill. (margin of 19.9%) also represents a new all-time high for
Lenzing.

"Our global growth strategy together with our intensified
specialization in high value fibers such as Lenzing Modal® and
TENCEL®, for which we have a unique position on the market, has
really paid off", says Lenzing Chief Executive Officer Peter
Untersperger, commenting on the Group´s business development. In any
case, the long-term positive development in the form of excess demand
for cellulose fibers ("cellulose gap") will continue and will not be
seriously impeded by the latest decline in cotton prices to a
realistic price level again, CEO Untersperger adds.

Positive development of all segments In the core business segment of
the Lenzing Group, Segment Fibers, Lenzing was able to carry out
several selling price increases in the first half-year, most recently
for its specialty fibers, against the backdrop of the full
utilization of its production capacities. These price hikes more than
compensated for the expected price consolidation for standard viscose
fibers for the Asian textile industry which took place in the second
quarter. Thus Lenzing´s average fiber prices for textile applications
in the second quarter of 2011 were higher than in the first quarter.
Volume demand for textile fibers remained strong throughout the
entire half-year.

Lenzing also recorded a stable price and volume development at a high
level in the Business Unit Nonwoven Fibers, whose average fiber
prices in the second quarter were also above those in the first
quarter of 2011.

The Segments Plastics Products and Engineering developed very
positively, and achieved significantly better results than in the
prior-year period.

Outlook Lenzing Group The Lenzing Group confirms its last published
outlook for the entire year 2011, in which the company anticipates
consolidated sales between EUR 2.1 bill. and EUR 2.2 bill. The
expected EBITDA will be in the range of EUR 470 mill. and EUR 500
mill., corresponding to the upper half of the initial outlook. A
decisive underlying factor is the very good business development of
the Lenzing Group in the second quarter of 2011, which exceeded
expectations.

On average business development for Q3 and Q4 2011 is expected to be
similar to the first quarter´s performance. The additional production
volumes resulting from the capacity expansion of Lenzing Nanjing
(China) should have a positive effect. An ongoing high price level
along with good demand is anticipated for the specialty fibers
Lenzing Modal® and TENCEL® also in the second half-year. In contrast,
the continuation of the short-term price consolidation trend for
standard viscose fibers in Asia which is still taking place along
with the resulting "pipeline effect" should have a dampening effect.

Even against the backdrop of a very good cotton harvest 2011/2012,
the structural influencing factors underlying the "cellulose gap" -
population growth, increasing prosperity and sustainability - will
continue to apply fully.

Important IFRS performance indicators on a Group-wide basis
(in EUR million) 1-6/2011 1-6/2010
Consolidated sales 1,076.2 821.4
EBITDA 247.8 150.1
Operating profit (EBIT) 199.2 108.0
Income before tax and minority interests (EBT) 187.7 101.6
Net income for the period 145.3 77.1
EBITDA margin in % 23.0 18.3
EBIT margin in % 18.5 13.1
Gross cash flow 191.5 122.3
Investments (Intangible assets, property,
plant and equipment) 82.1 66.2

30/06/2011 31/12/2010
Adjusted equity ratio* in % 42.3 38.6
Staff 6,323 6,143

*Equity incl. investment grants, less proportionate deferred taxes

Segment reporting
(in EUR million) 1-6/2011 1-6/2010
Segment Fibers
Sales 967.9 741.1
EBITDA 235.8 143.2
Operating profit (EBIT) 189.9 103.0
Segment Plastics Products
Sales 92.2 69.8
EBITDA 8.7 4.8
Operating profit (EBIT) 5.3 2.5
Segment Engineering
Sales 53.7 43.6(1)
EBITDA 4.9 3.2
Operating profit (EBIT) 4.2 2.5

(1)Adjusted for intra-segment sales

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, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English