EANS-Adhoc: Lenzing AG / Substantial Earnings Improvement in the First Three Quarters of 2015

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Financial Figures/Balance Sheet/quarterly report
12.11.2015

In the third quarter of 2015, the Lenzing Group continued the
positive development of the first two quarters of the year. Earnings
improved substantially compared to the first nine months of the
previous year.

Consolidated revenue amounted to EUR 1,458.9 mn, a 7.4% increase
versus the first three quarters of 2014 (EUR 1,357.7 mn). Earnings
before interest, taxes, depreciation and amortization (EBITDA) of EUR
210.6 mn improved by 31.7% compared to the EUR 159.8 mn in Q1-3
2014.). The corresponding EBITDA margin was 14.4%, compared to 11.8%
in the first three quarters of 2014. Earnings before interest and
taxes (EBIT) of the Lenzing Group rose to EUR 112.0 mn in the first
three quarters of 2015, up 61.1% from EUR 69.5 mn in the previous
year. This corresponded to an EBIT margin of 7.7% (Q1-3 2014: EUR
5.1%). Net profit for the period amounted to EUR 84.4 mn, comprising
an increase of 90.6% from EUR 44.3 mn in the first three quarters of
2014.

"In the first three quarters of the year we came close to doubling
our net profit for the period compared to the same period last year",
says Lenzing CEO Stefan Doboczky. "This very good performance was a
result of positive exchange rate effects, increasing fiber price and
the improved cost structure of the Lenzing Group. We continue to
progress well in our profit improvement measures and currently
benefit from the somewhat more positive business environment."

Ongoing strong demand for Lenzing fibers Despite higher market
prices, demand for Lenzing fibers remained strong across all regions
and all product groups. The fiber and pulp production capacities of
the Lenzing Group were operating at high utilization rates in the
first nine months of 2015.

Reorganization of the technical services completed After the
successful disposal of three business units of Segment Lenzing
Technik in mid-2015 Lenzing decided to initiate the sales process of
the unit Lenzing Technik Fertigung, thus finally concluding the
reorganization of the technical services units.

Outlook The fiber processing companies face increasing difficulties
to pass on the higher material costs in the cellulosic fiber value
chain. To some extent, this could lead to the substitution of
cellulosic fibers, especially by polyester in low-end applications
over the medium term. In China some of the first previously closed
down viscose fiber production capacities are starting operation once
again.

The Lenzing Group expects fourth quarter 2015 earnings to show a
similar development as in the third quarter of the year. Positive
currency effects, higher fiber selling prices and a good cost
position in the light of ongoing strong demand for Lenzing products
will enable a significant earnings improvement for the year 2015
compared to the previous year.

Key Group indicators
(IFRS)

In EUR mn 1-9/2015 1-9/2014
Revenue 1,458.9 1,357.7
EBITDA (earnings before
interest, taxes, 210.6 159.8
depreciation and
amortization)
EBITDA marginin % 14.4 11.8
EBIT (earnings before 112.0 69.5
interest and taxes)
EBIT marginin % 7.7 5.1
Net profit for the period 84.4 44.3
CAPEX(1) 44.3 84.8

Sept. 30, 2015 Dec. 31, 2014
Adjusted equity ratio(2)in % 48.4 44.9
Number of employees at 6,130 6,356
period-end

1) Capital expenditures: Investments in intangible assets, property,
plant and equipment 2) Ratio of adjusted equity to total assets as a
percentage

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