Leading Fiber Innovation · PDF file · 2012-11-20Soft denim – can be sold in...
Transcript of Leading Fiber Innovation · PDF file · 2012-11-20Soft denim – can be sold in...
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Leading Fiber Innovation
AUSTRIAN DAY PRESENTATIONNovember 20, 2012
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The information contained in this document has not been independently verified andno representation or warranty expressed or implied is made as to, and no relianceshould be placed on, the fairness, accuracy, completeness or correctness of thisinformation or opinions contained herein.
Certain statements contained in this document may be statements of futureexpectations and other forward looking statements that are based on management‘scurrent view and assumptions and involve known and unknown risks anduncertainties that could cause actual results, performance or events to differmaterially from those expressed or implied in such statements.
None of Lenzing AG or any of its affiliates, advisors or representatives shall have anyliability whatsoever (for negligence or otherwise) for any loss howsoever arising fromany use of this document or its content or otherwise arising in connection with thisdocument.
Certain figures in this presentation have been rounded in accordance with commercialprincipals and practice. Such figures that have been rounded in various tables maynot necessarily add up to the exact total given in the respective table.
Disclaimer
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Global fiber market at a glanceLong-term share synthetic fibers ~ 60% : natural fibers ~ 40%
Source: The Cellulose Gap, Gherzi, February 2011
Natural Fibers& NaturalPolymers
Cotton31.2%
MMC fibers6.0%
Synthetic fibers61.3%
Wool1.5%
79.1 mn tons
man-madecellulose fibers Viscose/Rayon Modal TENCEL®/Lyocell
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Where our fibers end upLadies wear – close to skin
Cowl neck tee USD 39.50 TENCEL® / Spandex
Lightly padded bra top maxi dress USD 79.50 Ecosil® Lenzing Modal® / Spandex
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Vintage flare jeans USD 98.00 100% TENCEL®
Five pocket skinny jeans USD 240.00 Lenzing Modal® / TENCEL® /
Cotton / Elastane
Where our fibers end upSoft denim – can be sold in retail with a high premium
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Where our fibers end upUSA’s leading baby wipe – TENCEL® inside
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Lenzing at a glanceGlobal market leader in producing man-made cellulosic fibers
Growth opportunity through 3 mega-trends leading to the cellulose gap
Global market leader in producing man-made cellulosic fibers (MMCF)
22% market share Innovation, technology and quality leader
Cost leader
Double digit growth profile over last 11 years
Global presence (production/sales/marketing) and expansion
Solid financials
Equity ratio1: 48.5%
Net gearing1: 25.6%
Total liquidity cushion1: EUR 561 mn1) as at September 30, 2012
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Growth opportunity: cellulose GapMMCF: Strong demand and limitations on cotton supply
PopulationGrowth
CAGR*) ‘11 – ’20:1.1%1
ProsperityCAGR*) ‘11 – ’20:
2.4%2
Sustainability/climate change
Cotton
Man-madeCellulosic
Fibers
SyntheticFibers
CelluloseGap
Fiber
Consumption
Shift in fiber
demand
Megatrends Input factor Supply trend
Arable land
Water
Wood
Oil
Cellulosic fibers
*) compound annual growth rate1) forecasted growth from UN Population Division2) forecasted growth of global real GDP per capita by Global Insight
1.
2.
3.
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Lenzing
22%
Grasim3
10%
Fulida
10%
Aoyang
6%Helon
5%
IndoBharat3
6%Tangshan
6%
Thai Rayon3
4%
Others
30%
Sateri
3%
Lenzing with 22% share of production1
Source: FEB, Trade statistics, Company estimates
1) production China: based on 65% utilization (CCFA)2) based on latest available company information from company websites and annual/interim reports3) direct or indirect non-controlling shareholdings by private Indian conglomerate Aditya Birla; marketing of viscose stables fibers under
the “Birla” umbrella brand
Lenzing
17%
Fulida
11%
Grasim3
8%
Aoyang
6%Tangshan
6%Helon
6%IndoBharat3
4%
Sateri
3%
Thai Rayon3
3%
Others
36%
Lenzing with 17% share of capacities2
Lenzing is the global market leaderViscose staple fiber market
3.23 mn tons 4.68 mn tons
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Lenzing is the innovation leaderIndustry leading R&D spend
As of December 2011, Lenzing ownedapprox. 1,300 patent applications andpatents in 57 countries belonging to218 patent families
All significant patents are filed andmaintained in Asia, the EuropeanUnion and the Americas
The majority of the patent portfoliofocuses on lyocell technology(TENCEL®)
As of December 2011, Lenzing ownedapprox. 1,400 trademark applicationsand trademarks in 95 countriesbelonging to 112 trademark families
Source: LAG
R&D expenses (2000-2011) Intellectual property
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
0
0,5
1
1,5
2
2,5
3
R&D expenses R&D as % of sales
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Lenzing is the cost leaderThrough pulp integration and long-term pulp supply contract
Long-termContract
46%
VerticalIntegration
47%
Other/Spot
7%
Pulp is the key cost driver with 42% share of total costs of material and purchased services
90+% of long-term pulp supply secured through own production (vertical integration) and long-term supply contracts
Long-term contract linked to paper pulp index (not to spot price of dissolving pulp) plus applicable premium
Source: Lenzing
Indicative spot pulp procurement costvs. vertical integration5
1) cost structure based on cost of materials and purchased services amounting to 322.0 EUR mn in Q3/20122) including wood3) other includes trading goods, other raw materials, packaging, auxiliary material4) data refers to sourcing of pulp used in a quarter, including inventory build-up. Paskov volumes included under vertical integration5) assuming spot price of $1,000 per metric ton
Source: Lenzing
Cost structure LenzingGroup (Q3/2012)1
Lenzing Group pulpsourcing (Q3/2012)4
Dissolvingpulp2
42%
KeyChemicals
14%
Energy
12%
Other 3
32%
0%
20%
40%
60%
80%
100%
Spot Lenzing site(vertical integration)
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70
364
0
100
200
300
400
2000 2011
108
480
0
100
200
300
400
500
2000 2011
334
705
0
100
200
300
400
500
600
700
800
2000 2011
599
2,140
0
500
1000
1500
2000
2500
2000 2011
Double-digit growth profileLenzing has managed growth successfully in the past
Fiber production
(1,000‘s metric tons)
CAGR7.0%
CAGR16.2%
CAGR12.3%
CAGR14.5%
Total external sales1
(EUR mn)
EBITDA1
(EUR mn)
EBIT1
(EUR mn)
1) 2000 based on US GAAP; 2010 based on IFRS
Double-digit growth p.a. over last 11 years
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Capacity expansion to 2015Accelerating the fiber expansion in the future
Total pulp capacityCAGR 23.9%
ChinaCAGR 15.6%
IndiaUSACAGR 28.8%
IndonesiaCAGR 7.9%
Europe1
CAGR 4.7%
Total capacity at
year endCAGR 11.4%
Annual capacity in ‘000 metric tons
Dissolvingpulp capacity
Paskovdissolvingpulp capacityPlannednew pulpplant
150 110 110
100 140 140
100 170 170350
420 420
2011 2014e 2015e
530640 655 605
765
100100 100 140
140
140150 160 220
280
100
215
770
965
1,185
2011 2013e 2014e
140 170250
2011 2014e 2015e
80
2011 2014e 2015e
240
320 325 325 325
2011 2014e 2015e
289
2011
320 320
50
240 240
c.240
339
560
c. 800
2013
e20
14e
2015
e
2012e 2013e
2012e 2013e
2013e2012e
2012e 2013e
2012
e 2015e2012e
100
160
100 110
100
150
350 370
2011 2014e 2015e2012e 2013e50
300
110
410
890 915
170170
40 50 50
110
50
1) includes Lenzing, Heiligenkreuz and Grimsby
300
240
540
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Outlook FY 2012Unchanged – driven to the low end by weaker Q4
approx. 22-24%Tax rate
Outlook 2012
Sales approx. EUR 2.10 – 2.15 bn
EBITDA approx. EUR 350 – 400 mn
EBIT approx. EUR 240 – 290 mn
Sales volume approx. 810 k tons
Capex approx. EUR 325 mn
Dividend policy approx. 25% of consolidated net
income
* EPG: European Precursor GmbH – joint venture with SGL Group for the production of carbon precursor
August guidance for FY: “High endif no change in Q4 – low end ifpricing deteriorates from Q3”
Lower Q4 average fiber price expected:approx. EUR 1.85 (Q3: EUR 1.95) per kg
Q4 one-off caused by potential EPG* wind-up:EBITDA: EUR -5 mn to -10 mnEBIT: EUR -20 mn to -25 mnNet income: EUR -10 mn to -15 mn
Line 5 (Indonesia): Production startedsuccessfully on October 29
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Contacts and financial calendar
Investor Relations contact
Stephanie KniepHead of Investor Relations
Phone: +43 7672 701 2047
Fax: +43 7672 918 4032
E-Mail: [email protected]
Visit our IR website:http://www.lenzing.com/en/concern/investor-center.html
Financial calendar 2013
Full year results March 22, 2013
69th Annual General Meeting April 24, 2013
Results 1st quarter May 8, 2013
Half year results August 21, 2013
Results 3rd quarter November 14, 2013
Financial calendar