EANS-Adhoc: Lenzing AG / Successful First Half of 2015

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Mid Year Results/quarterly report
25.08.2015

- Significant increase for all earnings indicators
- Strong tailwind from currency effects
- Improved cost position thanks to excelLENZ program
- Positive market development at the end of the second quarter

The Lenzing Group clearly improved upon all relevant performance and
balance sheet indicators compared to the first half of 2014.

Consolidated revenue rose by 6.2% in the first half-year, from EUR
900.0 mn to EUR 955.4 mn. Currency effects, slightly higher sales
volumes and an improved product mix were responsible for the revenue
increase. Earnings before interest, taxes, depreciation and
amortization (EBITDA) improved by 37.7% to EUR 126.5 mn, up from EUR
91.9 mn in the previous year. The EBITDA margin was 13.2%, compared
to 10.2% in the first half of 2014. Half-year earnings before
interest and taxes (EBIT) amounted to EUR 60.5 mn, or 86.7% above the
comparable EBIT of EUR 32.4 mn in the prior-year period. This
corresponded to an EBIT margin of 6.3% (H1 2014: 3.6%).

"Lenzing delivered a solid performance in the first half of 2015. The
underlying reasons were the currency effects which turned out to be
very positive for us due to the weakness of the euro, good fiber
demand in the second quarter and our improved cost position", says
Stefan Doboczky, Chief Executive Officer and Chairman of the
Management Board of Lenzing AG. "Viscose fiber prices in China, the
world's largest sales market for fibers, increased towards the end of
the second quarter due to a more favorable supply-demand ratio
related to several local viscose fiber production plants being shut
down for environmental reasons. We remain cautious concerning
prospects for the rest of 2015, in light of the fact that these
capacities could be put into operation again," he adds.

Further reduction of net financial debt[1] Adjusted equity of the
Lenzing Group rose to EUR 1,132.7 mn at the end of June 2015, up from
EUR 1,066.1 mn at the end of 2014. The adjusted equity ratio amounted
to 46.8% (December 31, 2014: 44.9%). The debt situation could be
substantially improved, with net financial debt reduced by 10.7% to
EUR 401.5 mn from the comparable level of EUR 449.5 mn at the end of
2014. As a result, net gearing[2]fell to 35.4% (December 31, 2014:
42.2%).

Investments in intangible assets, property, plant and equipment
(CAPEX) amounted to EUR 26.0 mn in the first half of 2015, down from
EUR 64.2 mn in the first half-year 2014. Investment activity was cut
back following the completion of the large TENCEL®fiber production
facility in Lenzing in the previous year. Investments focused on
necessary maintenance work as well as quality and optimization
measures in fiber and pulp production. Lenzing is currently focusing
on investments designed to optimize costs and quality due to the
ongoing uncertain market conditions and increasing quality demands.

The excelLENZ cost optimization initiative continued to be
implemented in the first half-year according to plan and proved to be
very successful. From today's perspective the targeted effects of
about EUR 160 mn p.a. will be completely achieved. Their full impact
will be felt starting in 2016. The restructuring program to adjust
capacities of the technical units of Lenzing AG and the subsidiary
Lenzing Technik which was launched in the first quarter of 2015 is on
schedule.

Ongoing market success withTENCEL® Lenzing was just as successful in
further developing the market for high quality viscose products in
the first half of 2015 as for TENCEL®. Demand for TENCEL® used in
jeans (denim) remained consistently strong, and the number of
processors integrating TENCEL® into their denim fabrics has doubled
over the last twelve months. Furthermore, the new Lenzing fiber
TENCEL® A100 MICRO was successfully launched on the market in the
first half of 2015. Lenzing also further expanded its strong market
position for nonwovens.

Outlook The specific market environment for the man-made cellulose
fiber industry improved somewhat in the middle of 2015 compared to
the end of the first quarter. Solid volume demand up until now was
followed by initial fiber selling price increases. The troubled
geopolitical situation, the economic situation in China and
unforeseeable exchange rate fluctuations are factors of uncertainty
in the second half of 2015.

Despite a volatile environment, the Lenzing Group expects a further
improvement in its operating results compared to 2014 as well as a
further reduction in its net financial debt.

Medium- and long-term growth rates in the man-made cellulose fiber
industry are expected to be higher than that of the global fiber
market.

Key Group indicators
(IFRS)

(in EUR mn) 1-6/2015 1-6/2014
Group revenue 955.4 900.0
EBITDA (Earnings before 126.5 91.9
interest, taxes,
depreciation and
amortization)
EBITDA margin in % 13.2 10.2
EBIT (Earnings before 60.5 32.4
interest and taxes)
EBIT margin in % 6.3 3.6
Profit/loss for the period 51.6 15.2
Earnings per share 1.99 0.57
CAPEX[3] 26.0 64.2

June 30, 2015 Dec. 31, 2014
Adjusted equity ratio[4]in 46.8 44.9
%

Number of employees at 6,184
6,356 period-end

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----------- [1]Interest-bearing financial liabilities (= non-current
and current financial liabilities) less liquid assets [2]Ratio of net
financial debt to adjusted equity as a percentage [3]Refers to
investments in intangible assets, property, plant and equipment [4]
Ratio of adjusted equity (including investment grants less prop.
deferred taxes) to total assets

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