Apparel Market Recovery and Financial Overview
Costs
After the "perfect storm" built up in H2 2022, first signs of
recovery in Q1 2023, further improvements in Q2-Q4 expected
H2 2022 - a "perfect storm” in H2 2022
Q1 2023
Expected Q2-Q4 2023
Unprecedented increase in raw
material and energy cost across the
industry
Declining but still elevated
- energy and raw material
prices visible in current
market environment
Costs are expected to further
decrease
Demand
Overall decline in demand for fibers in
the textile industry led to a decline of
fiber sales for Lenzing
Nonwoven sales remained
strong, textile sales starting
to increase
Prices
Free Cash Flow
www.lenzing.com
Significant decline in operating rates
and prices in line with declining
business sentiment
Fiber prices remain under
pressure, DWP prices stable
Capex for new sites in Thailand and
Brazil as well as inventories build up
with impact on trading working capital
3 May 2023 18
Capex decrease of ~50%
with positive impact
་་
Further improvement of textile
fiber sales expected based on
industry sentiment & low
inventory in key market China
Uptick in demand expected to
have positive effect on utilization
rates and prices
Operating cash flow expected to
increase, capex for maintenance
& carryovers, trading working
capital expected to decrease
Lenzing
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