EANS-Adhoc: Lenzing AG / Operating Results Of The Lenzing Group Above Expectations, One-Off Effects Negatively Impact Year-End-Results 2014

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annual result/Company Information
02.03.2015

According to preliminary figures, consolidated sales of the Lenzing
Group declined slightly to EUR 1.86 bn in 2014, down from the
prior-year level of EUR 1.91 bn in 2013. This drop can be attributed
to the continuing downward pressure on fiber prices as a consequence
of the global surplus capacities of viscose fiber producers.

Due to the changed medium-term viscose fiber price expectations,
expansion plans of Lenzing's subsidiaries PT. South Pacific Viscose
(Indonesia) and Lenzing Nanjing Fibers (China) will be adjusted to
reflect the new market conditions. In turn, this will lead to
adjustments in the measurement of goodwill, property, plant and
equipment and other intangible assets of these Group companies
reported in the Group financial statements to the amount of about
minus EUR 94 mn (preliminary). These non-cash measures will not have
any negative effect on the liquidity and net financial debt of the
Lenzing Group. On a medium-term basis, this will lead to an
improvement in the Group's consolidated balance sheet. As a result of
these one-off effects, the Group profit for the year of the Lenzing
Group in the 2014 financial year is expected to be about minus EUR 14
mn (preliminary) and EBIT is expected to amount to about EUR 22 mn
(preliminary).

On an operational level, Lenzing succeeded in countering the
prevailing trend in the industry. According to preliminary figures,
the Lenzing Group reported consolidated earnings before interest,
taxes, depreciation and amortization (EBITDA) of about EUR 240 mn in
2014 in spite of the ongoing low selling price environment. This
increase totaling almost 25% compared to the similarly challenging
year 2013 (about EUR 194 mn from continued operations) was achieved
thanks to sustainable cost savings generated within the context of
the excelLENZ program, substantial improvements in the product mix
and the successful coming on stream of the new TENCEL® fiber
production facility at the Lenzing site. In particular, new TENCEL®
applications for denim fabrics, shirts, home textiles and new
nonwoven products as well as generally new blends with cotton were
successfully launched on the market.

Furthermore, the Supervisory Board of Lenzing AG approved the
reorganization of its engineering and maintenance operations,
workshops and Lenzing Technik, which was first announced in November
2014. These measures will lead to additional significant cost savings
and productivity increases of about 15% in the company's technical
departments. These cost reductions will be based on setting up a
centralized maintenance unit, adapting engineering capacities to the
lower investment activity of the Lenzing Group in the future and
strategically repositioning Lenzing Technik. Moreover, the
Supervisory Board authorized the Management Board to explore
potentially new ownership structures for all sub-segments which do
not belong to the core business of Lenzing Technik as the optimal
basis for these areas.

The Management Board will present the consolidated financial
statements of the Lenzing Group for the 2014 financial year at the
annual results press conference on March 24, 2015, as scheduled.

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