EANS-Adhoc: Lenzing AG / Lenzing Group Reports Continued Good Development

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quarterly report

15.11.2011

In the first nine months of 2011, the Lenzing Group succeeded in
significantly improving all relevant indicators in comparison to the
previous year, and is thus performing in line with the expectations
defined in the half-yearly report.

Consolidated sales in the first nine months of 2011 climbed 23.9%
year-on-year, from EUR 1,285.5 mill. to EUR 1,592.2 mill. A total of
3.5 percentage points of this increase can be attributed to the
higher fiber shipment volumes, whereas 13.6 percentage points are the
result of the higher average fiber selling prices. Growth in other
business areas as well as the full consolidation of the Paskov pulp
plant over three quarters also contributed to the rise in
consolidated sales.

EBITDA in the first three quarters of 2011 improved by 55.3% to EUR
362.9 mill. from the prior-year level of EUR 233.6 mill. This
corresponds to an EBITDA margin of 22.8% (Q1-3 2010: 18.2%). The
operating profit (EBIT) in the first nine months of 2011 was up 71.6%
to EUR 289.7 milll. (Q1-3 2010: EUR 168.8 mill.), equivalent to an
EBIT margin of 18.2% (Q1-3 2010: 13.1%). The profit for the period
climbed to EUR 217.9 mill. from EUR 122.8 mill. in the previous year,
an increase of 77.5%.

"Following the outstanding second quarter, the market for standard
viscose fibers weakened as expected in the third quarter.
Nevertheless, we were able to post third-quarter earnings which
matched the very good first quarter of 2011", says Lenzing CEO Peter
Untersperger. "This was primarily due to the quantitatively higher
share of the specialty fibers Lenzing Modal® and TENCEL® along with
their stable price development. New record shipment volumes were
achieved with Lenzing Modal®".

The current fiber and pulp capacity expansion program of the Lenzing
Group is being resolutely pursued. In the first nine months of 2011,
investments climbed to EUR 130.5 mill. (Q1-3 2010: EUR 118.2 mill.)
Nevertheless, the net financial debt could be significantly reduced
by half to EUR 150.0 mill. (December 31, 2010: EUR 307.2 mill.)
whereas net gearing reached a new record low of only 15% (December
31, 2010: 40.5%).

The strong volume demand for both textile and nonwoven fibers has
enabled Lenzing to fully utilize all available fiber production
capacities during the reporting period. Inventories of the Lenzing
Group were at a low level at the end of the third quarter.

Outlook Lenzing Group

The Lenzing Group confirms its outlook for the entire year 2011
published in its half-yearly report, in which the company is expected
to achieve total sales between EUR 2.1 billion and EUR 2.2 billion.
The expected EBITDA is also unchanged and will be in the range of EUR
470 mill. to a maximum of EUR 500 mill.

In its core fiber business the Lenzing Group anticipates average
selling prices to be broadly in line with third-quarter price levels
and full utilization of its existing fiber production capacities. No
major changes are likely to occur on the raw material side. As
expected, the Segments Plastics Products and Engineering will achieve
good results in 2011 which surpass the comparable prior-year
performance.

Due to the company´s good earnings and cash flow situation, net
financial debt should be comparable to the level on September 30,
2011 in spite of the considerable investments being made until the
end of the year. Total investments in 2011 will remain at about 10%
of consolidated sales for the year, as several partial project
invoices will first be reported in the financial statements of the
2012 business year.

The overall business environment is characterized by uncertainty in
Europe and the USA with respect to the further development of the
economy as well as the temporarily lower credit growth in China and
shorter-term decision-making on the part of customers. From today´s
perspective, reliable forecasts pertaining to the development of the
fiber market in 2012 are not yet possible at present. In any case,
Lenzing is convinced that the demand for man-made cellulose fibers
will continue to increase in line with the long-term upward trend.
For this reason, Lenzing will push ahead with the implementation of
its planned expansion program with the aim of enabling the company to
optimally supply the market with about 1.2 million tons annually of
Lenzing fibers by 2015.

Key IFRS performance indicators on a Group-wide basis
(in EUR m) 1-9/2011 1-9/2010
Consolidated sales 1,592.2 1,285.5
EBITDA 362.9 233.6
Operating profit (EBIT) 289.7 168.8
Income before tax and minority interests (EBT) 277.0 155.8
Net income for the period 217.9 122.8
EBITDA margin in % 22.8 18.2
EBIT margin in % 18.2 13.1
Gross cash flow 288.6 195.7
Investments (Intangible assets, property,
plant and equipment) 130.5 118.2

30/09/2011 31/12/2010
Adjusted equity ratio(1) in % 44.1 38.6
Employees 6,472 6,530(2)

(1)Equity incl. investment grants, less proportionate deferred taxes
(2)Including employees of discontinued operations

Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 07672-918-2713
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