Lenzing Investor Presentation 2022 Full-year Results

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09/03/23

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#12022 Advancing Lenzing Investor Presentation Full-year results 2022 - March 09, 2023 Circularity Lenzing Innovative by nature#2Disclaimer • 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.com in the section "Investors". www.lenzing.com 09/03/23 - 2 Lenzing Innovative by nature#3At a glance Key developments & strategic highlights • Markets remained challenging with strong headwinds on cost, price and demand especially in H2 2022 EUR > 70 mn cost reduction program well on track • Successful production ramp-up of new Lyocell production site in Thailand and new DWP site in Brazil Lenzing confirmed excellent ESG ratings with triple "A" from CDP, AA from MSCI as well as Platinum status from EcoVadis ⚫ Nico Reiner started as new CFO on January 1st 2023 2022 financial results Revenue reached EUR 2,566 mn (vs. EUR 2,195 mn in 2021) ⚫ EBITDA decreased by 33 % to EUR 242 mn (vs. EUR 363 mn in 2021) Net result after minorities was negative at EUR -73 mn (vs. EUR 110 mn in 2021) Liquidity cushion of EUR 686 mn remains strong • Dividend for 2022 has been suspended Assuming a further market recovery in the current financial year, the Lenzing Group expects EBITDA in 2023 to be in a range of EUR 320 mn to EUR 420 mn www.lenzing.com 09/03/23 - 3 Lenzing Innovative by nature#4The "perfect storm" in H2 2022 2022 The comeback year 2023 Prospects remain positive 2024+ www.lenzing.com 09/03/23 - 4 Lenzing Innovative by nature#52022 The „,perfect storm" in H2 2022 www.lenzing.com Lenzing Innovative by nature#62022 saw an unprecedented increase in energy and NaOH cost across the industry Development of selected energy and NaOH market prices, 2020-2022 Indexed, Q1 2020 = 100 Energy prices 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 NOTE: All prices in reported currency SOURCE: IHS Markit; CCFG; Argus; ICE; NYMEX www.lenzing.com 2022 NaOH prices 500 NaOH Europe 400 300 Natural Gas Europe 200 Natural Gas USA 100 Coal Indonesia Coal China 09/03/23 - 6 0 NaOH Southeast Asia NaOH China Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 Lenzing Innovative by nature#7Due to the cost increases, energy and chemicals accounted for > 35 % of production cost in 2022 Production cost breakdown 20211 Others 73% 1) Production cost not equal to cost of sales www.lenzing.com Energy 12% 15% Chemicals 09/03/23 - 7 Others Production cost breakdown 20221 Energy 17% 63% 20% Chemicals Lenzing Innovative by nature#8Initial optimism early 2022 led to unfavorable decisions in the industry in retrospect Fashion executives' view1 on 2022 when asked in Nov 2021 % of respondents, n=221 Worse 9% Same 29% 62% Better Key takeaways At the end of 2021, the textile industry saw a very strong 2022 ahead 91 % expected the year to be better or same, significantly influenced by strong growth in 2021 This optimism led to some unfavorable decisions in retrospect ⚫ High stock levels as a learning out of Covid and supply chain driven stock outs This included even accepting the risk of high cotton prices Biggest fear within the textile value chain was to be out of stock 1) Survey question: "How will conditions evolve for the fashion industry in the next year, in SOURCE: BOF McKinsey State of Fashion 2022 Survey (status Dec 2021) www.lenzing.com your view?" 09/03/23 - 8 Lenzing Innovative by nature#9Clothing inventories increased to record high levels in H2 2022 US clothing inventories (retail and wholesale) USD bn 105 100 95 90 58 85 80 2022 EXAMPLE: US 2012-2019 range and average 75 70 65 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec NOTE: 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: US Census (accessed March 3, 2023) www.lenzing.com 09/03/23 - 9 Lenzing Innovative by nature#1011 10 9 8 7 Brands reacted with order postponements and cancellations reflected in drop of apparel imports US monthly apparel imports, 2022 USD bn 11 10 10 9 8 7 EU-27 monthly apparel imports, 2022 EUR bn 6 6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Note: Imports for HS code 61 Articles Of Apparel And Clothing Accessories, Knitted Or Crocheted and HS code 62 Articles Of Apparel And Clothing Accessories, Not Knitted Or Crocheted. All data is in current prices SOURCE: Trade Data Monitor (accessed March 3, 2023) www.lenzing.com 09/03/23 - 10 Innovative by nature Lenzing#11Business sentiment in textile industry rapidly declined in H2 2022, ✓ leading to negative impact on demand, operating rates and prices Current business situation TX industry % of respondents, balance between good vs. poor Operating rates VSF China % Prices VSF China (CCFG medium) RMB/ton, incl. VAT 20 18 15 14 13 10 5 90 85 80 75 10 70 15,500 15,000 14,500 14,000 0 -2 65 -3 -5 60 13,500 13,000 -10 12,500 55 -15 -15 50 12,000 1/22 3/22 5/22 7/22 9/22 11/22 1/22 3/22 5/22 7/22 9/22 11/22 1/23 1/22 3/22 5/22 7/22 9/22 11/22 1/23 SOURCE: ITMF; CCFG www.lenzing.com 09/03/23 - 11 Lenzing Innovative by nature#12As a consequence, Lenzing fiber demand declined by 10 % in 2022 www.lenzing.com Lenzing fiber sales volumes in thousand tons Annual development -10.5% 899 909 787 814 2019 2020 2021 2022 09/03/23 12 Half-yearly development 450 -19.1% 364 Overall decrease in demand for fibers in the textile industry led to a decline of fiber sales for Lenzing by 100 kt to similar levels as in 2020 Nonwoven sales remained solid H1/2022 H2/2022 Lenzing Innovative by nature#13Higher cost could be mainly passed on in H1, however, H2 2022 suffered from lower demand and prices came under pressure Group revenue in EUR mn Quarterly development 606 615 679 677 596 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Annual development 2,176 2,105 2,195 1,633 EBITDA in EUR mn Quarterly development 101 88 65 74 (14%) (15%) (11%) (11%) -21 (-4%) Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Revenue split 2022 +17% Annual development -33% 2,566 18% O 82% 383 (18%) 330 363 (17%) (16%) 192 (12%) 242 (9%) Fiber 2018 2019 2020 2021 Pulp 2022 2018 2019 2020 2021 2022 1) 2018-2020 restated figures www.lenzing.com 09/03/23 13 Lenzing Innovative by nature#14EBIT significantly lower in 2022 EBIT1 in EUR mn Quarterly development 52 44 22 (4%) (7%) (8%) 17 (3%) Group net profit after minorities and hybrid bond, in EUR mn EPS1 in EUR Quarterly development 0.39 0.87 1.49 40 23 10 -96 (-16%) Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q4/2021 Q1/2022 Q2/2022 238 (11%) 165 (8%) Annual development 201 (9%) 34 (2%) 2018 2019 2020 2021 1) 2018-2020 restated figures www.lenzing.com 16 (1%) 2022 -0.20 -4.91 -5 Q3/2022 -130 Q4/2022 EPS1 in EUR Annual development 5.61 149 4.63 0.24 123 6 4.16 -2.75 110 2018 2019 2020 2021 -73 2022 09/03/23-14 29 -73 Lenzing Hybrid Non- shareholders capital controlling owners interests -37 Net loss Lenzing Innovative by nature#15Free cash flow impacted by planned capex for new up and running sites in Thailand and Brazil as well as inventories build-up Free cash flow, in EUR mn 24 1 394 280 245 49 -256 -244 Trading working capital, in EUR mn -43 444 404 384 387 47.3% 571 -664 22% 24% -839 -698 21% 21% 16% -615 -741 -445 2018 2019 2020 2021 2022 Operating cash flow Investment cash flow1 Between 2020 and 2022, Lenzing increased investment spending to more than EUR 2.2 bn in total, mainly for its up and running expansions in Thailand and Brazil In the same period, operational cash flow was low in 2020 (mainly due to pandemic effects) and in 2022 with a significant increase of trading working capital 1) CAPEX less proceeds from the sale of intangible assets, property, plant and equipment and biological assets www.lenzing.com 09/03/23-15 2018 2019 2020 2021 2022 Trading working capital Trading working capital adjusted for factoring in % of annualized Group revenue Lenzing Innovative by nature#16Substantial liquidity buffer enabled Lenzing to cover impact from recent headwinds with a strong position by year-end 2022 Net financial debt, in EUR mn 471 401 401 380 219 219 977 626 1,869 Balance sheet metrics Change According to IFRS (EUR mn) Total assets 31 Dec. 2022 5,525.0 31 Dec. 2021 5,322.8 in % 3.8 1,362 Liquid assets ³ 453.3 1,124.1 (59.7) Total liabilities 3,499.1 3,250.7 7.6 thereof financial liabilities 2,322.2 2,101.2 10.5 Adjusted equity4 2,088.6 2,115.7 (1.3) Adjusted equity ratio (%) 37.8 39.7 Net gearing (%) 89.5 46.2 Net financial debt 1,869.0 977.0 91.3 Net financial debt / EBITDA ROCE (%) 7.7 2.7 2.0 5.4 2018 2019 2020 2021 2022 Reported net financial debt¹ Economic net financial debt² Capex of EUR ~700 mn in 2022 Increase of trading working capital mainly due to increase in inventories 1) Fully consolidated Brazil JV debt included 2) Reflects 51% economic share of Brazil JV debt 3) Including cash and cash equivalents, liquid securities and liquid bills of exchange 4) Including government grants less proportional share of deferred taxes on government grants www.lenzing.com 09/03/23-16 Change According to IFRS (EUR mn) 31 Dec. 2022 31 Dec. 2021 in % Total liquidity cushion 685.5 1,578.6 (56.6) thereof liquid assets³ 453.3 1,124.1 (59.7) thereof unused credit facilities 232.3 454.5 (48.9) Lenzing Innovative by nature#172022 with a solid start in H1, however, H2 2022 was a "perfect storm" - sudden and steep demand drop with rising costs H1 2022 - a solid start in the year Strong demand in all fiber product groups as well as DWP Costs High fiber and DWP prices led to revenues of EUR 1.29 bn in H1 2022 (+25 % y-o-y) Demand Energy, raw materials and logistics cost with further increases EBITDA reached solid level of EUR 189 mn in H1 2022 www.lenzing.com Prices Free Cash Flow 09/03/23 17 H2 2022 - a "perfect storm" Unprecedented increase in raw material and energy cost across the industry Overall decline in demand for fibers in the textile industry led to a decline of fiber sales for Lenzing Significant decline in operating rates and prices in line with declining business sentiment Capex for new sites in Thailand and Brazil as well as inventories build up with impact on trading working capital Lenzing Innovative by nature#18Measures have been taken proactively already in 2022 to further reduce costs and secure liquidity Global program to define and implement cost reduction measures Cash effective savings Reorganization and cost savings program with annualized and recurring impact of > EUR 70 mn well on track, full impact by the end of 2023 Measures will impact personnel, spend and operational efficiency - our existing P.I.T program supports fast implementation Personnel cost savings will amount to about EUR 40 mn on an annualized base; provisions for one-off costs built in 2022 Working capital Working capital improvement measures have been initiated Ensure utilization of current assets / liabilities in most effective way to improve liquidity Reduce fiber and pulp inventory levels Capex Risk management Reducing efficiently managing capex in the near to mid term New sites in Thailand and Brazil are fully invested 2023: maintenance capex as well as carryovers from upgrade and conversion of sites in China and Indonesia Reassessment of FX risk management and energy hedging policy Develop effective risk management strategy to mitigate impact Majority of energy cost for 2023 locked-in at favourable terms www.lenzing.com 09/03/23-18 Lenzing Innovative by nature#192023 The comeback year www.lenzing.com Lenzing Innovative by nature#20Many indicators point towards an improved outlook in early 2023, albeit starting from a low level and risks remain Macro growth In January, the IMF raised its 2023 global GDP forecast for the first time to now +2.9 % YoY Textile industry sentiment Inventories Fiber demand Consumer confidence Energy and chemicals cost SOURCE: IMF; S&P Global; ITMF; CCFG; US Census; GfK; INSEE www.lenzing.com In January survey, global textile industry business expectations significantly improved VSF inventories currently below mid-2022 level; US clothing inventories in December down -9% from Sep/Oct peak Currently, the operating rate of Asian yarn spinners exceeded ~60 %, up from ~40 % at year-end and back to mid-2022 level In late February, consumer sentiment in many countries with positive trend, but from a low absolute level European natural gas (day-ahead) currently back under EUR/MWh 50, caustic soda trending downwards in Q1 2023 09/03/23 - 20 Lenzing Innovative by nature#21After the "perfect storm" built up in H2 2022, recovery is expected in 2023 Costs H2 2022 - a "perfect storm” in H2 2022 Unprecedented increase in raw material and energy cost across the industry 2023 expectation - the comeback year Declining energy and raw material prices visible in current market environment Demand Prices Free Cash Flow www.lenzing.com Overall decline in demand for fibers in the textile industry led to a decline of fiber sales for Lenzing ⚫ Significant decline in operating rates and prices in line with declining business sentiment Capex for new sites in Thailand and Brazil as well as inventories build up with impact on trading working capital 09/03/23 - 21 Consumer demand expected to recover in the course of 2023 Uptick in demand to have positive effect on utilization rates and prices New sites completed and up and running, trading working capital to normalize in line with broader industry Lenzing Innovative by nature#22Liquidity position remains strong Liquidity cushion, EUR mn Debt maturities¹, EUR mn Quarterly development 686 390 192 141 61 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 Annual development 531 253 31.12.2022 Liquid assets Unused 2023 2024 credit facilities 1) Excl. leasing liabilities www.lenzing.com 501 358 2025 Financial liabilities 238 2026 2027 09/03/23 - 22 Solid liquidity position consisting of liquid assets and undrawn credit facilities Liquidity-generating measures are in place or have been initiated (e.g. cost reduction program) Dividends will be suspended to preserve liquidity Continue to actively focus on optimizing capital structure for the near and long term Refinancing options for 2024 and 2025 are being proactively explored to execute future growth strategy Lenzing Innovative by nature#23Lenzing expects EBITDA in 2023 to be in the range of EUR 320 mn - 420 mn Lenzing with focus on clear operational focal points • Demand in Q1 2023 increasing but still on a low level Capacity utilization with positive developments in Q1 2023 but not yet on pre-crisis levels Visibility remains low and cost volatility high; hedging strategy in execution for energy Markets are expected to recover in the course of 2023 with inventory levels in the industry getting back to average levels • Recently completed expansion projects expected to significantly contribute to cash flow generation Key operational focal points: • Implement EUR > 70 mn global cost reduction program • Prepare for market rebound Assuming a further market recovery in the current financial year, the Lenzing Group expects EBITDA in 2023 to be in a range of EUR 320 mn to EUR 420 mn www.lenzing.com 09/03/23 23 Lenzing Innovative by nature#242024+ Prospects remain positive www.lenzing.com Lenzing Innovative by nature#25History proves that textiles market comes back stronger after a crises Setbacks of global fiber demand over the last 60 years Global fiber demand, 1960-20221 Million tons 120 100 Covid-19 pandemic Global Financial Crisis 80 60 40 US Early 80s Recession Early 90s Recession Asian Financial Crisis Oil Crisis Recession 20 III 0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Back to pre- crisis level: Following year 1) Preliminary numbers for 2022 SOURCE: The Fiber Year; ICAC; Lenzing estimates www.lenzing.com Following year Following year Year after following year Following year Year after following year 09/03/23 25 Following year Lenzing Innovative by nature#26The outlook for Lenzing remains positive due to cellulose gap and sustainable fiber gap Expected long-term growth rates p.a., % ~1% Population ~2-3% Fiber market ~3% ~4-6% GDP Wood-based cellulosic fibers >20% Lyocell • Global fiber demand expected to continue its long-term growth trajectory at -2-3 % p.a. • Wood-based cellulosic fibers (WBCF) forecasted to grow ~4-6 % p.a. due to cellulose gap Highest growth expected in Lyocell with > 20 % p.a. Shift to sustainable fibers such as Lyocell (sustainable fiber gap) driven by growing consumer demand, criticism from NGOs, and anticipated regulation (e.g., EU Textile Strategy) • Lenzing is in a leading position to tackle the megatrend of sustainability and to accelerate the transformation of the textile business from a linear to a circular model www.lenzing.com 09/03/23 - 26 Lenzing Innovative by nature#27Lenzing with strong focus on innovations Selected recent fiber and pulp highlights Lenzing celebrates 30 years of TENCEL TM fibers TENCEL™ Modal fiber with Indigo Color technology won 2022 ITMF Award for Sustainability and Innovation Sidonios Tech x TENCEL T LUXE Seamless Athleisure set wins ISPO Award 2022 Lenzing's VEOCEL™ brand launches hydrophobic Lyocell fibers with Dry technology Lenzing expands carbon neutral fiber portfolio for workwear and protective wear segments Lenzing and Renewcell sign large-scale supply agreement further closing the loop in fashion TENCEL TM branded Lyocell fibers with REFIBRA TM technology for security workwear of the Belgian Federal Public Service for Justice More than 300,000 tons of LENZING™ ECOVERO TM branded fibers have been sold since the brand's launch in 2017 Tencel Feels so right? www.lenzing.com 09/03/23 - 27 Lenzing Innovative by nature#28VEOCEL™ is still a very young brand - however, brand awareness already close to 40 % VEOCEL™ branding KPIs Co-branding programs Aided brand awareness of VEOCEL ™ in nonwovens applications (in %)1 Selected co-branding partners 25 37 il- Neutrogena Ko+ex kindoh SWEEPS happiness is your baby's smile goop The natural wipe to go watsons 2020 2021 2022 1) Source: Nielsen brand tracking www.lenzing.com Veocel™ Purely for you 09/03/23 - 28 33 27 2020 2021 2022 38 88 Lenzing Innovative by nature#29☐ TM TENCEL ™ with further increase of co-branding programs. TENCEL™ branding KPIs Co-branding programs 168 109 +23% Selected co-branding partners Aided brand awareness of TENCEL TM in apparel and home textiles (in %)1 CALZEDONIA LEVI'S 697 567 2019 2020 2021 2022 1) Source: Nielsen brand tracking www.lenzing.com AMARIS clothes intimissimi Marc O'Polo MOTHER OF PEARL 30 30 27 Timberland VOGUE Tencel® Feels so right 09/03/23 - 29 36 35 2019 2020 2021 2022 Lenzing Innovative by nature#30e New and upgraded assets strengthen Lenzing's foundation to benefit from full market recovery Fully invested capacity expansions 100 kt Lyocell plant in Thailand Tencel™ Veocel™ Feels so right Purely for you 500 kt single line DWP mill in Brazil1 LENZING™ Site conversions ongoing Upgrade and conversion of fiber sites in Nanjing, China and Purwakarta, Indonesia Veocel™ Tencel™ Feels so right EcoVero™ Purely for you 1) JV with Dexco www.lenzing.com 2022 Lenzing Thailand Company Limited Ca OLD 2022 2023 LD Calsione ⚫ Product launches planned in the course of 2023 09/03/23 30 Lenzing Innovative by nature#31Lenzing confirms position as sustainability champion ESG Ratings ✓ CDP DISCLOSURE INSIGHT ACTION TM MSCI ESG RATINGS AA CCC B BB BBB A AA AAA PLATINUM Top 1% 2022 ecovadis Sustainability Rating Lenzing was in the second year in a row recognized with a triple "A" score for global climate, forests and water stewardship by CDP and is now one of only 12 companies with this rating. Lenzing defended it's "AA" rating - with a continuous improvement of its industry adjusted score to 8.4 compared to 7.6 in 2021 Lenzing has been reawarded Platinum status in EcoVadis' CSR rating and thereby continues to ranks among the world's top one percent of companies in its industry www.lenzing.com 09/03/23 - 31 Lenzing Innovative by nature#32Excellent prospects for Lenzing remain unchanged The "perfect storm" in H2 2022 2022 • Unprecedented increase in raw material and energy cost across the industry Inventories in the textile industry increased sharply in 2022 Business sentiment in textile industry rapidly declined, leading to negative impact on demand, operating rates and prices www.lenzing.com The comeback year 2023 • Demand is expected to recover in the course of 2023 Energy and chemical cost show first signs of normalisation • Global cost reduction program with positive impact • Lenzing expects EBITDA in 2023 to be in the range of EUR 320 mn - 420 mn 09.03.2023 - 32 Prospects remain positive 2024+ Leading position to tackle megatrends of sustainability and circularity Specialty fibers with highest growth rates in the industry • Innovation platform with unique technologies secures long-term prospects • Strong ingredient brands further support margins and growth • Lenzing's new and upgraded assets with boosting impact after full market recovery Lenzing Innovative by nature#33Thank You for your attention!#34Backup www.lenzing.com Lenzing Innovative by nature#35Group revenue breakdown Fiber revenue by application, % 29% 32% 32% 37% 41% 71% 68% 68% 63% 59% Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Nonwoven fibers Textile fibers www.lenzing.com 29% 30% 31% 38% 35% 71% 70% 62% 69% 65% 2018 2019 2020 2021 2022 Nonwoven fibers Textile fibers Specialties share of fiber sales in 2022 Standard Fibers 26% 74% Specialty Fibers¹ 1) LENZING™ Lyocell, LENZING™ Modal, LENZING™ Specialty Viscose 09/03/23 - 35 Lenzing Innovative by nature#36Group P&L YTD MEUR Revenues Cost of Sales Q4-c 2022 Q4-c 2021 Change 2 565,7 2 194,6 371,1 16,9% -2 162,6 -1 692,8 -469,8 27,8% % of Revenue -84,3% -77,1% -7,2% Gross Profit 403,1 501,9 -98,7 -19,7% % of Revenue 15,7% 22,9% -7,2% Selling Expenses -286,7 -234,0 -52,8 22,6% % of Revenue -11,2% -10,7% -0,5% Administrative Expenses -137,2 -117,5 -19,6 16,7% % of Revenue -5,3% -5,4% 0,0% R&D Expenses -29,2 -24,0 -5,2 21,8% % of Revenue -1,1% -1,1% 0,0% Other Operating Income 73,1 78,0 -4,9 -6,3% Other Operating expenses -6,6 -3,8 -2,9 77,1% EBIT 16,5 200,6 -184,2 -91,8% % of Revenue 0,6% 9,1% -8,5% Depreciation & Amortization 225,5 162,3 63,1 38,9% EBITDA 241,9 362,9 -121,0 -33,3% % of Revenue 9.4% 16,5% -7,1% -43,0% Financial Result -26,5 -17,7 -8,8 49,9% Income Taxes -27,2 -55,2 28,0 -50,8% Net Income/Loss -37,2 127,7 -165,0 < -100,0% Attributable to: Shareholders of Lenzing AG -73,1 110,3 -183,2 <-100,0% Share planned for hybrid capital owners 28,8 28,8 -0,1 -0,2% Non-controlling interests 7,1 -11,4 18,3 < -100,0% www.lenzing.com 09/03/23 - 36 Lenzing Innovative by nature#37Quarterly P&L development MEUR Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Delta Q4 YoY Delta Q4 % YoY Delta Q3 Q4 Delta % Q3 - 2022 Q4 2022 Revenues Cost of Sales % of Revenue Gross Profit 595,5 676,5 678,6 615,0 606,1 -10,6 -1,7% -81,0 -12,0% -568,8 -583,3 -524,4 -486,1 -500,7 -68,2 13,6% 14,4 -2,5% -95,5% -86,2% -77,3% -79,0% -82,6% 644,8% -9,3% 26,7 93,2 154,3 128,9 105,5 -78,8 -74,7% -66,5 -71,4% % of Revenue 4,5% 13,8% 22,7% 21,0% 17,4% -12,9% -9,3% Selling Expenses -67,7 -78,8 -75,3 -65,0 -71,4 3,7 -5,1% 11,1 -14,1% % of Revenue -11,4% -11,6% -11,1% -10,6% -11,8% 0.4% 0,3% Administrative Expenses -35,1 -29,3 -37,8 -35,0 -24,7 -10,4 42,2% -5,9 20,1% % of Revenue -5,9% -4,3% -5,6% -5,7% -4,1% -1,8% -1,6% R&D Expenses -9,6 -4,9 -7,0 -7,8 -6,6 -3,0 45,4% -4,7 94,9% % of Revenue -1,6% -0,7% -1,0% -1,3% -1,1% -0,5% -0,9% Other Operating Income -7,9 37,2 18,4 25,3 22,9 -30,8 < -100,0% -45,1 > +100,0% Other Operating Expenses -2,5 -0,6 -0,6 -2,9 -3,4 0,8 -24,3% -2,0 >+100,0% EBIT -96,1 16,9 52,0 43,6 22,4 -118,5 < -100,0% -113,0 > +100,0% % of Revenue -16,1% 2,5% 7,7% 7,1% 3,7% -19,8% -18,6% Depreciation & Amortization 75,1 57,1 48,9 44,4 43,0 32,1 74,6% 17,9 31,4% EBITDA -21,0 74,1 100,9 88,0 65,4 -86,4 <-100,0% -95,1 > +100,0% % of Revenue -3,5% 10,9% 14,9% 14,3% 10,8% -14,3% -14,5% Financial Result -40,4 9,4 6,5 -2,1 0,9 -41,3 < -100,0% -50,1 > +100,0% Income Taxes 24,3 -23,8 -20,3 -7,4 -9,0 33,3 <-100,0% 48,1 > +100,0% Net Income / Loss -112,2 2,6 38,2 34,1 14,3 -126,5 <-100,0% -115,1 > +100,0% Attributable to: Shareholders of Lenzing AG -130,4 -5,3 39,7 23,0 10,3 -140,3 < -100,0% Share planned for hybrid capital owners 7,2 7,2 7,2 7,2 7,2 0,0 -0,2% Non-controlling interests 11,1 0,8 -8,6 3,9 -3,2 14,1 <-100,0% -125,3 0,0 10,1 >+100,0% 0,3% >+100,0% www.lenzing.com 09/03/23 - 37#38Division EBITDA Q4-c 2022 vs Q4-c 2021 EBITDA per Division in EUR mn Q4-c / 2022 33 310 242 214 -101 Q4-c / 2021 210 -61 363 Fiber Pulp Other 1) 2) Group Fiber Pulp Other¹ Group 1) Incl. consolidation 2) Other includes the total restructuring provision www.lenzing.com 09/03/23-38 Lenzing Innovative by nature#39Topline Breakdown Q4-c 2022 vs Q4-c 2021 www.lenzing.com EUR mn Wood-based cellulosic fibers Co-products of fiber production Mechanical and plant engineering, engineering services and others Division Fiber Pulp Biorefinery-products and energy Wood and other Division Pulp Others Total Group Revenue 09/03/23 - 39 2022 2,013.8 2021 1,833.6 55.9 52.8 24.1 17.9 2,093.8 1,904.3 272.1 162.2 160.3 94.4 34.5 27.6 466.9 284.2 5.0 6.1 2,565.7 2,194.6 Lenzing Innovative by nature#40Quarterly cash flow development Change Change Q4/Q4 (EUR mn) Q4/2022 Q3/2022 Q4/Q3 (%) Q4/2021 (%) 01-12/2022 01-12/2021 Change y-o-y (%) Gross cash flow (after taxes and interest) (3.4) 78.5 70.9 244.8 372.0 (34.2) Change in total working capital¹ (74.6) (58.9) 26.6 15.4 (288.0) 22.0 Operating cash flow (78.0) 19.6 86.3 (43.2) 394.0 Investment cash flow² (166.9) (142.7) 17.0 (213.9) (22.0) (697.5) (839.6) (16.9) Free cash flow adj. (244.9) (123.1) 98.9 (127.6) 91.9 (740.7) (445.5) 66.3 1) Including trading and other working capital 2) Including investment in and proceeds from disposal of financial assets, acquisition of other financial assets, proceeds/repayments of other financial assets www.lenzing.com 09/03/23 - 40 Lenzing Innovative by nature#41e Cash flow and trading working capital development Free cash flow, in EUR mn Trading working capital, in EUR mn 0% 567 568 571 387 397 -64 20 -78 -143 80 86 -214 -183 יוון 24.0% 20.9% 21.0% -205 -123 -167 16.0% 16.1% -103 -128 -245 Q4/2021 Q1/2022 -270 Q2/2022 Q3/2022 Q4/2022 Operating cash flow Investment cash flow¹ 1) CAPEX less proceeds from the sale of intangible assets, property, plant and equipment and biological assets www.lenzing.com 09/03/23 - 41 Q4/2021 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Trading working capital Trading working capital in % of annualized Group revenue Lenzing Innovative by nature#42FY2022: Net debt bridge Net Financial Debt FY 2021 977.0 Net Tax Interest Gross CF1 48.5 63.9 Cash Capex² Change (incl. Fin. in Trading Change in Ass.) Currency IFRS 16 WC other WC Dividend Translation Leasing Capital Increase Others -357.1 Change in total working capital EUR (292.3) mn³ 699.2 227.6 64.7 -56.7 -13.3 144.4 58.5 12.3 1) Gross cash flow before taxes and interest 2) Including CAPEX of 3) Change in total working capital EUR (698.9) mn and financial assets of EUR (0.3) mn EUR (288.0) mn (according to cash flow statement) Adjustment change in liquid bills of exchange Change in total working capital adj. www.lenzing.com EUR (4.3) mn EUR (292.3) mn (according to net debt) 09/03/23 42 Net Financial Debt FY 2022 1,869.0 Lenzing Innovative by nature#43Q4 2022: Net debt bridge. Net Financial Debt Q3 2022 1,714.2 Net Tax Interest Gross CF1 -57.9 10.3 51.0 Cash Capex² Change (incl. Fin. in Trading Change in Ass.) WC Currency IFRS 16 other WC Dividend Translation Leasing Capital Increase Others Change in total working capital EUR (76.2) mn³ 167.0 49.6 26.6 28.8 1) Gross cash flow before taxes and interest 2) Including CAPEX of 3) Change in total working capital EUR (166.9) mn and financial assets of EUR (0.1) mn EUR (74.6) mn (according to cash flow statement) Adjustment change in liquid bills of exchange Change in total working capital adj. www.lenzing.com EUR (1.6) mn EUR (76.2) mn (according to net debt) 09/03/23 - 43 -105.8 -0.3 -11.9 -2.5 Net Financial Debt Q4 2022 1,869.0 Lenzing Innovative by nature#44Balance sheet structure and return on capital employed Balance sheet positions, in EUR mn EUR 5,525 mn 3,613.6 PP&E¹ 2,025.9 Equity Capital employed, in EUR mn 3,542 2,767 2,216 1,923 1,750 10.3% 5.4% 5.4% 2.0% 2,322.2 Financial liabilities -0.5% 2018 2019 2020 2021 2022 712.5 Inventories 293.6 Trade receivables 435.4 Trade payables 446.9 Cash and equiv. 157.8 Provisions 458.4 Others 583.6 Others Assets Liabilities 1) Incl. right-of-use assets and biological assets www.lenzing.com 09/03/23 44 Average capital employed ROCE (%) Lenzing Innovative by nature#45Gradual recovery of China's economy is expected to have positive impact on Chinese fiber and pulp markets Fiber prices in China USD/kg, excl. VAT Viscose Cotton Polyester Dissolving hardwood pulp 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 1/20 7/20 SOURCE: CCFG; Cotlook; ICAC www.lenzing.com 1/21 7/21 1/22 7/22 приват 1/23 09/03/23 - 45 Viscose • VSF market started bullish after Chinese New Year, however the recovery proved to be more slowly than expected and the VSF price was slightly adjusted Operating rates in Chinese VSF industry are currently fairly high at -80% Compared to the production level, inventories at VSF plants are not large and would be sufficient for ~ 23 days Cotton • After the price rally last year, cotton prices move largely sideways now • The current price level remains relatively high in historical comparison Cotton prices prove to be sensitive to new macro data Polyester • Price development was mostly driven by feedstock cost Dissolving hardwood pulp Higher downstream operation rates support pulp demand and prices Lenzing Innovative by nature#46Cotton price down after last year's spike, Lenzing specialties similar to other cellulosics Cellulosic fiber prices in China 6-months average, percent from January 2017, converted at constant FX rates 160 150 140 130 120 110 100 90 80 70 60 1/17 7/17 1/18 7/18 1/19 7/19 1/20 7/20 1/21 7/21 1/22 7/22 1/23 1) Lenzing's specialties: LENZING TM Lyocell, LENZING TM Modal, LENZING TM Specialty Viscose SOURCE: CCFG; CCA; Lenzing www.lenzing.com 09/03/23 - 46 Lenzing specialties1 CC Index VSF (TX) CCF high Lenzing Innovative by nature#47Contact and financial calendar Investor contact Sébastien Knus VP Capital Markets Phone: +43 7672 701 3599 E-mail: [email protected] Visit our IR website https://www.lenzing.com/investors/ Financial calendar Annual results 2022 79th Annual General Meeting Results 01-03/2023 Half-year results 2023 Results 01-09/2023 March 9, 2023 April 19, 2023 May 3, 2023 August 2, 2023 November 3, 2023 Visit our SRI sites https://www.lenzing.com/sustainability www.lenzing.com 09/03/23 - 47 Connect with us https://www.facebook.com/LenzingGroup https://at.linkedin.com/company/lenzinggroup https://twitter.com/LenzingAG Lenzing Innovative by nature

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