Fibers Made from Wood – Our Position in the Circular and Bio-Based Economy Bioeconomy in Our Daily Life – Webinar „Wear What You Talk‘ June 17Th, 2020

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Fibers made from Wood – our Position in the Circular and Bio-Based Economy Bioeconomy in our daily life – Webinar „Wear What You Talk‘ June 17th, 2020

Caroline Ledl, Lenzing AG www.lenzing.com Where do Lenzing fibers stand in terms of raw material

www.lenzing.com 6/17/20 - 2 LENZING™ fibers produced from the raw material wood

www.lenzing.com 6/17/20 - 3 Locations of the Lenzing Group

Paskov Grimsby Czech Republic Nanjing United Kingdom Pulp production Dissolving wood pulp China Capacity: 275,000 tons dissolving wood pulp p.a. Fiber production Lyocell Fiber production Viscose Capacity: 45.000 t fibers p.a.. Capacity: 178.000 t fibers p.a. Heiligenkreuz Austria Seoul Korea Fiber production Lyocell Sales and marketing office Capacity: 90.000 t fibers p.a. New York USA Shanghai Sales and Bangkok China Mobile marketing office Lenzing Thailand Sales and marketing office USA Austria Office for planning a new fiber Global Headquarter production plant Hongkong Fiber production Lyocell Headquarter Europe & Americas Capacity: 51.000 t fibers p.a. China Pulp production Dissolving wood pulp Istanbul Headquarter North Asia Sales and marketing office Capacity: 300.000 t dissolving wood pulp p.a. Turkey Fiber production Viscose, Modal Sales and Capacity: 284,000 t fibers p.a. marketing office Singapore Fiber production Lyocell Coimbatore Headquarter AMEA Capacity: 74.000 t fibers p.a. India (Asia, Middle East and Africa) Sales and Sales and marketing office marketing office

Jakarta Purwakarta São Paulo Indonesia Indonesia Brazil Sales and Fiber production Viscose Office to investigate building a marketing office Capacity: 323.000 t fibers p.a. dissolving wood pulp plant

Nameplate capacities as at December 31, 2018

www.lenzing.com 6/17/20 - 4 Key sustainability challenges for Lenzing

● Responsible wood & pulp sourcing

● Sustainable production technologies

● Circular economy

● Microplastics

● Transparency, footprinting, track & traceability

www.lenzing.com 17.06.20 - 5 Lenzing‘s sustainability targets Our contribution to SDGs

www.lenzing.com 6/17/20 - 6 100% of Commercially used Wood and Pulp are certified/controlled

Strict wood and dissolving pulp sourcing policy Wood certification status (2019)

● NO sourcing from controversial sources, including:

● ancient and endangered forests ● high conservation value areas

All Lenzing production sites are FSC® certified

● Dissolving wood pulp uses < 1% of global harvested wood

● Lenzing’s dissolving pulp is made from beech, spruce, eucalyptus

www.lenzing.com 6/17/20 - 7 The Lenzing Biorefinery

Highly efficient use of the raw material wood in the Lenzing Group‘s biorefineries

www.lenzing.com 6/17/20 - 8 TENCEL™ Modal fibers production

● TENCEL™ Modal is exclusively produced at Lenzing in Austria ● Integrated production site for pulp and fiber production ● Pulp production generated energy supply for the site

www.lenzing.com 6/17/20 - 9 TENCEL™ Lyocell fibers production

● TENCEL™ Lyocell fibers are produced in Austria, UK and US

● Lyocell process uses an organic solvent NMMO for the fiber production ● Solvent is reused in the fiber production ● Water is also reused

www.lenzing.com 6/17/20 - 10 TENCEL™ x REFIBRA™ Lyocell fibers

TENCEL™ Lyocell fibers with REFIBRA™ technology feature up to 30% of recycled raw material content, where some pre-consumer cotton textile waste is used a part of the raw material.

Lenzing’s five-year vision is to raise the industry bar by producing fibers with REFIBRA™ technology by having up to 50% recycled content from post-consumer cotton textile waste to make textile waste recycling as common as paper recycling.

www.lenzing.com 6/17/20 - 11 LENZING™ Lycoell fibers show improved environmental impact compared to other fiber types

120 Abiotic Resource Depletion, Fossil Fuels score Water Scarcity score 100 Eutrophication score Global Warming score

fiber 80 /kg /kg

60 points

score, 40 MSI

0 Flax fiber Cotton fiber, Sheep wool, fine- Polylactic acid Lyocell (generic) PET, fossil-fuel Cotton fiber, LENZING™ PET, conventional medium and (PLA), bio-based based organic Lyocell mechanically production superfine recycled

Note: These results were calculated using the Higg Material Sustainability Index (Higg MSI) tools provided by the Sustainable Apparel Coalition. The Higg MSI tools assess impacts of materials from cradle-to- gate for a finished material (e.g. to the point at which the materials are ready to be assembled into a product). However, this figure only shows impacts from cradle to fiber production gate. LENZING™ branded fibers’ Higg MSI scores were calculated based on Higg MSI database (status: October 2019). Higg MSI data for fossil-fuel based synthetic fibers (i.e. PET) represents the production of flakes/granulate material only – additional efforts to produce PET staple fibers (extrusion / staple fiber spinning) are estimated on the basis of Higg MSI data for subsequent processing.

www.lenzing.com 6/17/20 - 12 Certificates and recognitions of Lenzing fibers

Wood sourcing Environmental Product safety

Disclaimer: Customers should note that the third party certification and use of logos only relates to the fiber, and that final products would need recertification. There is no implied right for the customer to use any of the logos described herein. www.lenzing.com 6/17/20 - 13 Caroline Ledl [email protected]