Lenzing Ag · VIE:LNZ
Lenzing — Shareholder Meeting (June 2006)
30 slides from Lenzing's shareholder meeting presentation, Jun 14, 2006
Slide 1: 62nd Regular Shareholders' Meeting Lenzing AG
62nd Regular Shareholders‘ Meeting Lenzing AG Report of the Management Board for 2005
Slide 2: 2005 in brief
2005 in brief Continued growth by capacity expansion Sales up by 8.2% to EUR 942.6 mill. 1 January 2005: European textile market opens Record cotton harvest 2004/05 depresses global fiber prices Cut into margins by EUR 35 mill. due to sharp rise in raw material and energy prices Share of
Slide 3: Sales by sector
Sales by sector 2005 Engineering Paper 4% 6% Plastics 9% Fibers & Pulp 81% 14.06.2006 | 3 excluding intra group sales
Slide 4: Sales by region
Sales by region 2005 Austria 16% Asia and all other 41% EU (ex Austria) Americas Europe (ex EU) 33% 5% 5% 14.06.2006 | 4
Slide 5: Sector Fibers
Sector Fibers 14.06.2006 | 5
Slide 6: Global fiber production 2005: down by 0.4% to 65.3 mill. tons
Global fiber production 2005: down by 0.4 % to 65.3 mill. tons Record production of man-made fibers ― 36 mill. tons (up by 2.3%) wool cellulose fibers 2% 5% cotton synthetic fibers 38% 55% 14.06.2006 | 6 Source: Lenzing Marktforschung
Slide 7: Man-made fibers: gainer China, losers Europe, USA and Korea
Man-made fibers: gainer China ― losers Europe, USA and Korea mill. tons 18,000 +13.8% 2004 16,000 2005 14,000 12,000 10,000 8,000 -2.4% 6,000 -7.1% -5.8% 4,000 -14.1% -0.5% -1.4% -2.3% -4.1% 2,000 0,000 Wes tern Turkey USA China Taiwan Korea Japan India Thailand Europe 14.06.2006 | 7
Slide 8: Lenzing Fibers grows despite difficult general conditions
Lenzing Fibers grows despite difficult general conditions Sales of EUR 767.6 mill. (2004: EUR 697.6 mill.) Satisfactory result taking into account difficult general conditions Fiber capacity expansion Lenzing AG: 225,000 tons SPV: 150,000 tons Sales increase: Organic growth by capacity
Slide 9: April 2005: ground-breaking ceremony at Nanjing/China
April 2005: ground-breaking ceremony at Nanjing/China 14.06.2006 | 9
Slide 10: Spring 2006: progress at Nanjing
Spring 2006: progress at Nanjing 14.06.2006 | 10
Slide 11: Early summer 2006: more progress at Nanjing
Early summer 2006: more progress at Nanjing 14.06.2006 | 11
Slide 12: Business Unit Textile Fibers: key factor to success - innovation
Business Unit Textile Fibers: key factor to success ― innovation Numerous market innovations Global development of markets by translocal teams Increased cooperation between R&D and Marketing Fiber properties as sales and marketing argument ― skin- friendliness Successful cooperation with h
Slide 13: Success story TENCEL ACTIVE
Success story TENCEL® ACTIVE Naturalness and performance: Natural Intelligence as argument in sport textiles dominated by synthetic fibers: skin-friendliness, moisture management, hygiene (reduced bacterial growth), naturalness and sustainability Debut at ispo Munich Successful cooperation wit
Slide 14: Business Unit Textile Fibers: key factor to success - global marketing
Business Unit Textile Fibers: key factor to success ― global marketing New marketing focus 2005: India, Shanghai, Taipeh, Seoul, Tokyo Exhibition cooperation of Lenzing Innovation Asia with Frankfurt Fair: First Texworld USA in July 2006 Labeling service: about 90 million labels and stickers f
Slide 15: Business Unit Nonwoven Fibers
Business Unit Nonwoven Fibers Lenzing sole company with production presence in Europe, Asia and USA Volatile market prices but rising volumes Lenzing increases US market share Supply chain advantages for major customers Successful product development for technical applications (battery sep
Slide 16: Business Unit Pulp
Business Unit Pulp Record production: more than 216,000 tons Clear advantages by aggregation of pulp purchasing for sites with non- integrated production Result affected by increased wood prices Strategic coverage of pulp supply for 2006 secured Further price increases for wood due to shif
Slide 17: Business Unit Energy
Business Unit Energy In part massive price increases for energy at all sites Lenzing: fossil fuels down from 17.7% to 15.2% Record production Fuel input plus 2.3% Power consumption plus 1.9% Lenzing AG: electrical power self-sufficiency at 94% 14.06.2006 | 17
Slide 18: Business Unit Engineering
Business Unit Engineering Total sales of EUR 88.6 mill (2004: EUR 88.2 mill.) Gratifying result Good development of fiber and pulp technology market Expansion of plant engineering and automation Mechatronics: good development due to broadened customer base 14.06.2006 | 18
Slide 19: Ecology and sustainability - milestones 2005
Ecology and sustainability ― milestones 2005 Commitment to high ecological standards at all sites Lenzing AG: expansion of production at flat emission levels Improved utilization of water power Favorable court ruling for RVL More investment into environmental protection initiated at SPV 14
Slide 20: Business Unit Paper
Business Unit Paper Sales at EUR 53.1 mill (2004: EUR 53.5 mill.) Negative result despite massive cost savings in all areas Market in its fourth difficult year ― EU paper demand decisive Unfavorable price-cost ratio depresses results situation Implementation of comprehensive cost saving me
Slide 21: Business Unit Plastics
Business Unit Plastics Sales at EUR 79.9 mill. (2004: EUR 76.3 mill) Second-best result in company history Difficult environment due to raw material price situation High volatility of PP and PE prices Innovations: artifical turf, PTFE-based medical products 14.06.2006 | 21
Slide 22: Financial statements 2005
Financial statements 2005 Attractive growth with focus on organic growth Raw material price increase not fully compensated by product price increase More growth by investment in capacity expansion (Nanjing) All in all ― a difficult year well managed 14.06.2006 | 22
Slide 23: Company group key figures 2005 (IFRS)
Company group key figures 2005 (IFRS) in EUR mill. 2004 2005 change in % Sales 871.1 942.6 + 8.2 EBITDA 160.4 141.6 -11.7 EBITDA margin 18.4 % 15.0 % -18.4 EBIT 104.3 81.8 -21.6 EBIT margin 12.0 % 8.7 % -27.5 EBT 103.5 79.3 -23.4 Share of net income of 67.7 56.9 -15.9 shareholders of Lenzing AG 14.0
Slide 24: Key figures 2005: balance sheet
Key figures 2005: balance sheet in EUR mill. 31 DEC 04 31 DEC 05 Change in % Property, plant and equipment 570.9 596.4 + 4.5 Investments (intangible and property, 60.9 82.4 +35.2 plant and equipment) Equity* 460.5 484.8 +5.3 Equity ratio 48.7% 48.0% -1.4 Net debt 179,7 169,0 -6,0 Net gearing 39.0% 3
Slide 25: Key figures 2005: cash flow
Key figures 2005: cash flow EUR mill. 2004 2005 change in % Gross cash flow 128.5 120.4 -6.3 as % of sales 14.7% 12.8% -13.4 Net cash from operating activities 95.3 124.3 +30.4 Free cash flow -36.2 35.1 Cash and cash equivalents 59.6 77.1 +29.3 14.06.2006 | 25
Slide 26: Share price
Share price Current delisting activity at German stock exchanges: small trade volume cost savings Xetra, Euro and currency liberalization enable international trading without listing in individual countries concentration of trade volume at Vienna stock exchange 14.06.2006 | 26
Slide 27: Market outlook
Market outlook Stabilization of market environment Continued strong Asian demand Slight cyclical recovery of European demand (especially for textile fiber specialties) Lower polyester prices due to excess production capacity Continued high cotton stock Good opportunities for cellulose st
Slide 28: Outlook Lenzing Group 2006
Outlook Lenzing Group 2006 Rising raw material and energy prices will continue to exert strong cost pressure Part of increased costs to be passed on to customers Successful start and continuation of cost optimization program for compensating development of raw material and energy prices Prod
Slide 29: Thank you for your attention
QLENZING . rl Thank you for your attention
Slide 30: 62nd Regular Shareholders' Meeting Lenzing AG
62nd Regular Shareholders‘ Meeting Lenzing AG