Lenzing : Investor Presentation Annual Result 2023

Disclaimer

• The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.
• Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management's current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.
• None of Lenzing AG or any of its affiliates, advisors or representatives shall have any liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document.
• Certain figures in this presentation have been rounded in accordance with commercial principles and practice. Such figures that have been rounded in various tables may not necessarily add up to the exact total given in the respective table.
• Definition and further details on the calculation of financial key indicators can be derived from the Half-Year Report and the Annual Report. These reports are also available online on the website of the Lenzing Group www.lenzing.comin the section "Investors".

Today's agenda

Weak market environment heavily affected Lenzing results in 2023, holistic performance program leading to positive FCF in H2 2023

Key developments

• The recovery expected for the second half of 2023 in the markets relevant to Lenzing has not occurred
• Weak demand in fiber markets and still elevated raw material as well as energy costs heavily affecting Lenzing's results
• Management took swift action in summer 2023 with holistic performance program to increase resilience by strengthening the top line, enhancing cost excellence as well as fully focusing on FCF generation
• Program is ahead of plan with first ultimate impact resulting in positive FCF in Q3 and Q4 2023

2023 financial results

• Revenue stagnated at EUR 2,521 mn (vs. EUR 2,566 mn in 2022) with growing DWP share
• EBITDA increased to EUR 3031 mn (vs. EUR 2421 mn in 2022)
• Continued uncertainties in the economic and industry environment as well as a higher interest rate environment led to a non-cash impairment of EUR 465 mn
• Net result after minorities and hybrid bond was negative at EUR -649 mn (vs. EUR -73 mn in 2022) mainly driven by impairment
• FCF 2023 significantly improved to EUR -123 mn (vs. EUR -741 in 2022) - FCF in Q3 and Q4 2023 were positive

Lenzing Group expects EBITDA for the 2024 financial year to be higher than in the previous year

2023

1) Includes positive biological asset valuation impact

Market update

www.lenzing.com

Both energy and NaOH market prices remained elevated in 2023 compared to historical levels

Development of selected energy and NaOH market prices, 2020-2023

NOTE: All prices indexed based on reported currency

SOURCE: IHS Markit; CCFG; Argus; ICE; NYMEX

As a result, costs for energy and chemicals for Lenzing still on high levels in 2023 compared to 2021

Development of selected costs for Lenzing 2021-20231, as percentage of production costs (excl. depreciation)

2021 2022 2023

1) Excluding costs for new pulp mill in Brazil and new Lyocell plant in Thailand to make numbers comparable

NOTES: 1 Global estimate based on 42 countries accounting for 84 % of global 2019 apparel sales. Where available incl. online (China), otherwise excl. online. Europe estimate based on weighted average of 20 countries. All data in local currency, partly adjusted for FX

SOURCE: Lenzing Market Intelligence based on government statistics

Inventory levels in the US significantly decreased in 2023 and brands continue to be cautious on inventory development

NOTES: Including inventories in both retail and wholesale. Retail inventories for NAICS 448 (Clothing and clothing access. Stores), wholesale inventories for NAICS 4243 (Wholesale of Apparel, Piece Goods & Notions). Not adjusted for seasonal variation and trading-day differences. In current prices

SOURCE: Company filings, Investor Call transcripts, US Census (accessed February 2024)

Inventory trends in the textile industry in 2023 show path to normalization supported by high promotional activity during holiday season in Q4

SOURCE: Lenzing Market Intelligence based on company filings