EANS-Adhoc: Lenzing AG / Lenzing Achieves a Significant Leap in Earnings

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

Financial Figures/Balance Sheet/Company Information
23.03.2016

* Revenue rose by 6% to EUR 1.98 bn
* EBITDA increase of 20.7% to EUR 290.1 mn
* Dividend proposal: doubling to EUR 2.00 per share
* Share of specialty fibers up to 40.5%
* Further earnings improvement expected in 2016

Thanks to a strong operational performance, the Lenzing group
significantly improved just about all relevant economic and balance
sheet indicators in the 2015 financial year compared to its business
results in 2014.

Consolidated revenue climbed by 6.0% to EUR 1.98 bn. This increase is
particularly due to higher fiber selling prices, the growing share of
specialty fibers in its product mix and positive exchange rate
effects. EBITDA (Earnings before interest, tax, depreciation and
amortization improved by 20.7% to EUR 290.1 mn, up from the
prior-year figure of EUR 240.3 mn. Lenzing's performance in 2015
corresponded to an EBITDA margin of 14.7% (2014: 12.9%). EBIT
(Earnings before interest and tax) of the Lenzing group amounted
increased to EUR 151.1 from EUR 21.9 mn, corresponding to an EBIT
margin of 7.6% (2014: 1.2%). Earnings before tax (EBT) amounted to
149.1 mn, substantially higher than EUR 7.3 mn in 2014. The group net
profit for the year totaled EUR 124 mn, compared to a loss of EUR
14.2 mn in the previous year. Earnings per share in the 2015
financial year rose to EUR 4.63, up from minus EUR 0.51 per share in
2014. On the basis of this good financial performance, the Management
Board and Supervisory Board will propose that the upcoming Annual
General Meeting approve the distribution of a dividend of EUR 2.00
per share for the 2015 financial year, double the dividend for 2014.

"We made substantial progress in 2015, and delivered the promised
improvements to our business operations," says Stefan Doboczky, Chief
Executive Officer of Lenzing AG. "We strategically realigned the
company, improved the earnings and cost structure and enhanced our
financial strength. We also expect a considerable rise in earnings
once again in 2016 provided that the underlying business framework
does not significantly change."

Solid balance sheet structure, clear improvement of ROCE to 8%
Lenzing boasts a solid balance sheet structure which was further
optimized in the course of the 2015 financial year. Adjusted equity
increased by 15% to EUR 1.23 bn (2014: EUR 1.07 bn). The adjusted
equity ratio amounted to 50.6%, the highest level since the year 2006
(2014: 44.9%). Net financial debt was sharply reduced by 27.0% to EUR
327.9 mn (December 31, 2014: EUR 449.5 mn). Accordingly, the ratio of
net financial debt to EBITDA declined from 1.9 at the end of 2014 to
1.1 at the end of 2015. The return on capital generated by the
Lenzing group improved thanks to the positive earnings development.
As a result, the return on capital employed (ROCE) increased to 8.0%,
compared to minus 0.1% in the previous year. At the same time, the
return on equity (ROE) rose to 13.0% (2014: 0.7%).

Investments in intangible assets, property, plant and equipment
(CAPEX) of the Lenzing group totaled EUR 70.9 mn in the 2015
financial year, compared to the prior-year level of EUR 104.3 mn.
Following completion of the TENCEL® fiber production plant at the
Lenzing site in 2014, the focus of Lenzing's capital expenditures in
2015 was on maintenance work as well as the implementation of quality
and optimization measures. The excelLENZ cost optimization initiative
was concluded in 2015. The new strategy sCore TEN was developed by
the Lenzing team and is already in implementation.

Share of specialty fibers up to 40.5% of group revenue Demand for
high-quality Lenzing fibers was strong in 2015, encompassing all
regions and product groups. For this reason, the pulp and fiber
production capacities of the Lenzing group were well utilized against
the backdrop of high production output. In particular, sales of the
specialty fiber TENCEL® increased significantly. The share of
specialty fibers as a percentage of total group revenue was 40.5% in
the 2015 financial year, compared to the 35.0% in the previous year.
Expenditures for research and development were increased by 47% to
EUR 29.8 mn, in line with the company's strategy of focusing on the
development, production and marketing of innovative specialty fibers.

Outlook for 2016 The volatile development prevailing on the global
fiber market is expected to continue. High cotton inventories and low
polyester selling prices intensify price competition on the market
i.e. inter-fiber competition. However, the market segment of
wood-based cellulose fibers, which is of relevance to Lenzing, is
showing signs of developing more positively than the overall fiber
market. Demand for cellulose fibers remains strong, and the ratio of
supply to demand is favorable. Assuming unchanged conditions on the
fiber market and currency exchange rates, Lenzing expects further
improvements in earnings in the current 2016 financial year compared
to 2015.

Key group indicators
(IFRS)

in EUR mn 1-12/2015 1-12/2014
Revenue 1,976.8 1,864.2
Earnings before interest, 290.1 240.3
tax, depreciation and
amortization (EBITDA)
EBITDA margin in % 14.7 12.9
Earnings before interest 151.1 21.9
and tax (EBIT)
EBIT marginin % 7.6 1.2
Net profit/loss for the 124.0 -14.2
period
CAPEX(1) 70.9 104.3

Dec. 31, 2015 Dec. 31, 2014
Adjusted equity ratio(2) in % 50.6 44.9
Number of employees at 6,127 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

Photo download:
https://mediadb.lenzing.com/pindownload/login.do?pin=DPFLR
PIN: DPFLR

Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 7672-918-2713
mailto:w.kaserer@lenzing.com

end of announcement euro adhoc
--------------------------------------------------------------------------------

issuer: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: office@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