EANS-News: Lenzing AG / Lenzing Group: Substantial Earnings Increase in the First Quarter of 2016

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quarterly report

* Revenue up 8.1 percent to EUR 512.8 mn * EBITDA improvement of 54.7
percent to EUR 92.2 mn * Tripling of free cash flow and operating
cash flow * Various sites under evaluation for expanding production
capacities of specialty fibers

Lenzing, May 12, 2016 - The Lenzing Group generated a substantial
increase in earnings in the first quarter of 2016, thus continuing
the positive trend that emerged in recent quarterly periods and
achieving the best first quarter results since the financial year
2012. The resolute implementation of the new group strategy sCore TEN
is reflected in the company's strong operating performance.

Consolidated revenue rose by 8.1 percent in the first quarter of 2016
to EUR 512.8 mn compared to the first quarter of 2015. This increase
is mainly attributable to the strong demand for Lenzing fibers and
the higher fiber selling prices. Consolidated earnings before
interest, tax, depreciation and amortization (EBITDA) rose by 54.7
percent to EUR 92.2 mn. This corresponds to an EBITDA margin of 18
percent, up from 12.6 percent in the previous year. Earnings before
interest and tax (EBIT) of the Lenzing Group more than doubled to EUR
59.5 mn. Accordingly, the EBIT margin climbed to 11.6 percent from
the 5.7 percent of the prior-year quarter. Net profit for the period
and earnings per share increased almost threefold to EUR 44.1 mn
after EUR 16.6 mn and to EUR 1.63 after EUR 0.66 per share. Lenzing
also achieved a close to tree-fold improvement in its cash flow
position. The free cash flow was up from EUR 26.5 mn to EUR 88.4 mn,
whereas the operating cash flow rose from 37.6 mn to EUR 104.3 mn.

"We are proud that we have got off to a very good start in the year
2016", says Stefan Doboczky, Chief Executive Officer of Lenzing AG.
"The new Group strategy sCore TEN with its clear focus on profitable
growth is taking hold. We are implementing the strategy very
disciplined, which is having a noticeable effect on earnings already.
Initial progress has also been made in managing our trading working
capital. Assuming that the overall business environment remains
unchanged, I continue to expect a substantial improvement in earnings
for the entire financial year 2016." New organizational structure A
new organizational structure was introduced effective March 1, 2016
in order to ensure the optimal implementation of sCore TEN. Three
regional, performance- responsible business units were created to
more intensively focus on the fiber business in their respective
regions: "Europe & Americas", "North Asia" (China, Japan, Korea,
Taiwan and Vietnam) and "AMEA" (Asia excl. North Asia; Middle East
and Africa). The three regional business units are complemented by
the newly established global "Pulp & Wood" business area. This new
organizational structure gives the regions greater management
responsibility and further increases customer proximity.

Various sites for capacity expansion are being examined In the first
quarter of 2016, investments in intangible assets, property, plant
and equipment (CAPEX) climbed only moderately to EUR 15.9 mn, up from
EUR 11.2 mn in the prior-year quarter. However, this is expected to
change in the course of the 2016 financial year. As specified in the
sCore TEN strategy, the Lenzing Group plans to expand its production
capacities for specialty fibers. Various existing and new sites
around the world are currently being examined to add new capacities.
Initial decisions are to be made in the third quarter of 2016.

Outlook 2016 The macroeconomic situation around the globe is expected
to remain volatile. As to the global fiber markets high cotton
inventories and the ongoing low oil prices continue to put downward
pressure on cotton and polyester selling prices. However, a balance
between supply and demand should prevail in the market segment of
wood-based cellulose fibers. In particular, Lenzing expects a strong
increase in demand for its specialty fibers.

Assuming unchanged conditions on the fiber market and currency
exchange rates, Lenzing feels confident to confirm a substantial
improvement in earnings for the entire financial year 2016 compared
to 2015.

Key Group indicators
(IFRS)

in EUR mn 1-3/2016 1-3/2015
Revenue 512.8 474.6
Earnings before interest,
tax, depreciation and 92.2 59.6
amortization (EBITDA)
EBITDA marginin % 18.0 12.6
Earnings before interest 59.5 27.0
and tax (EBIT)
EBIT marginin % 11.6 5.7
Net profit/loss for the 44.1 16.6
period
CAPEX (1) 15.9 11.2

31.03.2016 31.12.2015
Adjusted equity Ratio (2) in % 51.5 50.6
Trading working capital (3) 430.8 447.4
Number of employees at 6,106 6,127
period-end

1) Capital expenditures: Equals acquisition of intangible assets, property,
plant and equipment as per consolidated statement of cash flows
2) Ratio of adjusted equity to total assets as a percentage

3) Inventories plus trade receivables less trade payables

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Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto:w.kaserer@lenzing.com

end of announcement euro adhoc
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company: 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: official market: Wien
language: English