Copyright and published by Lenzing Group Lenzing . Lenzing Aktiengesellschaft 4860 Lenzing, Austria www.lenzing.com T 2011 R Edited by L REPO A Lenzing Aktiengesellschaft Success. Our definition. ANNU Corporate Communications . Angelika Guldt ANNUAL REPORT 2011 Lenzing Group Phone: +43 (0) 76 72 701-21 27 Fax: +43 (0) 76 72 918-21 27 E-mail: [email protected] Metrum Communications GmbH, Wien Idea and Design by ElectricArts GmbH Printed by kb-offset Kroiss & Bichler GmbH & CoKG Photography by Lenzing AG Fotostudio Manfred Lang GmbH Getty Images Trumph GmbH & Co. KG Boris Renner Elisabeth Grebe Michael Hägele ElectricArts GmbH Fotostudio Attersee Günter Brandstetter Wiener Börse AG Photography Wolfgang Simlinger Lenzing Aktiengesellschaft . 4860 Lenzing, Austria . Phone: +43 (0) 76 72 701-0 Fax: +43 (0) 76 72 701-38 80 . E-mail: [email protected] . www.lenzing.com OurSuccess. definition. www.facebook.com/LenzingGroup www.lenzing.com Key Data of the Lenzing Group according to IFRS Business Results Financing Structure Net Gearing Sales compared to EBITDA EUR Mn 20091 2010 2011 EUR Mn 20091 2010 2011 in % EUR Mn Sales EBITDA Sales 1,218.0 1,766.3 2,140.0 Cash and cash equivalents 125.4 305.6 493.8 EBITDA 187.9 330.6 480.3 Inventories 175.6 222.8 284.6 60 2,500 500 EBITDA margin in % 15.4 18.7 22.4 Receivables 169.1 254.9 312.8 EBIT 114.2 231.9 364.0 Liabilities 397.6 591.8 639.5 2,000 480.3 400 EBIT margin in % 9.4 13.1 17.0 Net financial debt 315.7 307.2 159.1 40 EBT 102.9 216.9 351.9 Net debt2 397.2 388.5 245.0 1,500 300 Profit for the year attributable Retained earnings 485.6 613.6 828.2 330.6 to shareholders of Lenzing AG 64.4 159.1 258.7 Net Gearing in % 51.9 40.5 15.2 1,000 200 20 187.9 500 100 51.9 40.5 15.2 1,218.0 1,766.3 2,140.0 0 0 0 20091 2010 2011 20091 2010 2011 Capital Expenditure (Property, plant and equipment) Cash Flow EUR Mn 20091 2010 2011 EUR Mn 20091 2010 2011 Capital expenditure Gross cash flow 147.4 282.3 389.0 Lenzing AG 53.0 53.6 59.8 Operating cash flow 250.9 294.0 309.7 Group total 150.4 230.0 196.3 Cashflow after investments Group depreciation (intangible assets, property, and amortization 77.7 102.5 120.6 plant and equipment) 100.5 64.0 113.4 cash, cash equivalents and 3 marketable securities 176.4 305.6 493.8 Dividend Sales compared to EBT in % Dividend in EUR Dividend yield in % EUR Mn Sales EBT 2.5 12.5 2,500 500 Capital Structure Stock Exchange 2.0 10.0 2,000 351.9 400 EUR Mn 20091 2010 2011 EUR 2009 2010 2011 Liabilities Common stock in mn 26.7 26.7 27.6 1.5 7.5 1,500 300 5.62 216.9 (w/o post employment benefits) 757.1 1,123.3 1,206.4 Market capitalization in mn 915.1 2,238.1 1,697.6 Post employment benefits 81.5 81.3 85.9 1.0 3.91 5.0 1,000 200 Adjusted equity 608.5 758.8 1,048.1 Share price as at 31 Dec.3 35.6 87.0 63.9 102.9 1.78 ROCE in % 8.6 18.4 23.3 Earnings per share4 5 2.50 6.19 9.88 0.5 2.5 500 100 ROE in % 11.0 24.9 29.6 2.00 1.55 2.502 1,218.0 1,766.3 2,140.0 0.0 0.0 0 0 20091 2010 2011 20091 2010 2011 Production 1) Values adjusted according to IFRS 5 1) Values adjusted according to IFRS 5 in 1,000 tons 20091 2010 2011 2) Including obgligations for pension and severance payments 2) Proposal Fibers (total) 568.6 653.7 705.1 Plastics5 25.9 35.7 39.3 3) In December 2010 the number of shares in circulation was 3) In December 2010 the number of shares in circulation was increased to increased to 25,725,000 by a stock split with a proportion of 1:7. 25,725,000 by a stock split with a proportion of 1:7. The comparative figures were adjusted. The comparative figures were adjusted. 4) Based on a weighted average number of shares 5) From continuing operations Key Data of the Lenzing Group according to IFRS Business Results Financing Structure Net Gearing Sales compared to EBITDA EUR Mn 20091 2010 2011 EUR Mn 20091 2010 2011 in % EUR Mn Sales EBITDA Sales 1,218.0 1,766.3 2,140.0 Cash and cash equivalents 125.4 305.6 493.8 EBITDA 187.9 330.6 480.3 Inventories 175.6 222.8 284.6 60 2,500 500 EBITDA margin in % 15.4 18.7 22.4 Receivables 169.1 254.9 312.8 EBIT 114.2 231.9 364.0 Liabilities 397.6 591.8 639.5 2,000 480.3 400 EBIT margin in % 9.4 13.1 17.0 Net financial debt 315.7 307.2 159.1 40 EBT 102.9 216.9 351.9 Net debt2 397.2 388.5 245.0 1,500 300 Profit for the year attributable Retained earnings 485.6 613.6 828.2 330.6 to shareholders of Lenzing AG 64.4 159.1 258.7 Net Gearing in % 51.9 40.5 15.2 1,000 200 20 187.9 500 100 51.9 40.5 15.2 1,218.0 1,766.3 2,140.0 0 0 0 20091 2010 2011 20091 2010 2011 Capital Expenditure (Property, plant and equipment) Cash Flow EUR Mn 20091 2010 2011 EUR Mn 20091 2010 2011 Capital expenditure Gross cash flow 147.4 282.3 389.0 Lenzing AG 53.0 53.6 59.8 Operating cash flow 250.9 294.0 309.7 Group total 150.4 230.0 196.3 Cashflow after investments Group depreciation (intangible assets, property, and amortization 77.7 102.5 120.6 plant and equipment) 100.5 64.0 113.4 cash, cash equivalents and 3 marketable securities 176.4 305.6 493.8 Dividend Sales compared to EBT in % Dividend in EUR Dividend yield in % EUR Mn Sales EBT 2.5 12.5 2,500 500 Capital Structure Stock Exchange 2.0 10.0 2,000 351.9 400 EUR Mn 20091 2010 2011 EUR 2009 2010 2011 Liabilities Common stock in mn 26.7 26.7 27.6 1.5 7.5 1,500 300 5.62 216.9 (w/o post employment benefits) 757.1 1,123.3 1,206.4 Market capitalization in mn 915.1 2,238.1 1,697.6 Post employment benefits 81.5 81.3 85.9 1.0 3.91 5.0 1,000 200 Adjusted equity 608.5 758.8 1,048.1 Share price as at 31 Dec.3 35.6 87.0 63.9 102.9 1.78 ROCE in % 8.6 18.4 23.3 Earnings per share4 5 2.50 6.19 9.88 0.5 2.5 500 100 ROE in % 11.0 24.9 29.6 2.00 1.55 2.502 1,218.0 1,766.3 2,140.0 0.0 0.0 0 0 20091 2010 2011 20091 2010 2011 Production 1) Values adjusted according to IFRS 5 1) Values adjusted according to IFRS 5 in 1,000 tons 20091 2010 2011 2) Including obgligations for pension and severance payments 2) Proposal Fibers (total) 568.6 653.7 705.1 Plastics5 25.9 35.7 39.3 3) In December 2010 the number of shares in circulation was 3) In December 2010 the number of shares in circulation was increased to increased to 25,725,000 by a stock split with a proportion of 1:7. 25,725,000 by a stock split with a proportion of 1:7. The comparative figures were adjusted. The comparative figures were adjusted. 4) Based on a weighted average number of shares 5) From continuing operations ANNUAL REPORT 2011 . Lenzing Group | 3 Success. Our definition. The business and sports worlds have a lot in common – above all the understanding that suc- cess only occurs on the basis of cooperation. The right partners have to come together in order to enjoy success – but also the right skills, values and opportunities. This is only possible in an environment characterized by fairness and trust offering space for development, progress and improvements, but also for mistakes and defeats. When this happens it is possible to manage what the Lenzing Group managed in 2011 – a new record or best achievement. This annual report shows exactly what harmonized perfectly to make this all possible … 4 Contents Success. Our definition. 03 Contents 04 Team spirit. 06 Editorial by the Chairman of the Management Board 08 The Lenzing Group 10 The Management Board of the Lenzing Group 11 The Business Units of the Lenzing Group 12 The Locations of the Lenzing Group 14 Products of the Lenzing Group 16 Segment Fibers 16 Segment Plastics Products 18 Segment Engineering 18 Strategic Positioning and Objectives 19 Management Report 2011 | Timing.* 22 General Market Environment 24 Development of the Lenzing Group 26 Segment Fibers 28 Business Unit Textile Fibers 32 Business Unit Nonwoven Fibers 34 Business Unit Pulp 36 Business Unit Energy 37 Segment Plastics Products 40 Segment Engineering 42 Persistence.* 44 Risk Report 46 Insurance 52 *) Not part of the Management Report ANNUAL REPORT 2011 .