EANS-News

Lenzing AG / Lenzing Group achieves best full-year results in its history - Seite 2

sustainable", says Stefan Doboczky, Chief Executive Officer of the Lenzing
Group. "We are very positive about our chosen strategy as it will help us to be
more resilient as we expect more headwinds in the upcoming quarters", he adds.

Zwtl.: Very strong balance sheet and improved return on capital

The return on capital employed (ROCE) increased to 18.6 percent compared to 15.1
percent in 2016 and adjusted equity increased by 9.9 percent to EUR 1.53 bn from
the prior-year level of EUR 1.39 bn. Accordingly, the adjusted equity ratio
improved to 61.2 percent (December 31, 2016: 53 percent). Despite higher capital
expenditures net financial debt continued to remain at a very low level,
totaling EUR 66.8 mn at the end of 2017 (December 31, 2016: EUR 7.2 mn).

Zwtl.: CAPEX investments more than doubled

The capital expenditures (CAPEX) of the Lenzing Group more than doubled in 2017
to EUR 238.8 mn from EUR 107.2 mn in light of the capacity expansions. The
increase in working capital, primarily due to the discontinuation of the
factoring program, resulted in an operating cash flow in 2017 of EUR 271.1 mn
down from EUR 473.4 mn in 2016.

Total expenditures for research and development, calculated according to the
Frascati method, amounted to EUR 55.4 mn in the 2017 financial year (2016: EUR
46.4 mn), putting Lenzing in the top ranks of the industry both in absolute
terms as well as in relation to revenue.

Zwtl.: Sustainability driven innovation power

In 2017, the Lenzing Group presented a number of game changing sustainability
innovations, that underline the ongoing transformation of Lenzing into a genuine
specialist player focused on high-quality botanic materials made from the
sustainable raw material wood. The introduction of TENCEL(TM) branded lyocell
fibers with REFIBRA(TM) technology at the Première Vision trade fair in Paris in
February and the launch of LENZING(TM) ECOVERO(TM) branded viscose fibers in May
were followed by the presentation of TENCEL(TM) Luxe branded lyocell filaments.
TENCEL(TM) Luxe will open new markets for the company and for its customers and
partners and will allow the company to further participate in the premium
segment of the fabrics market. With the help of TENCEL(TM) Luxe filaments
Lenzing supports customers of the premium luxury fashion industry to improve
their ecological footprint.

Zwtl.: Investment program in progress

The Lenzing Group aims to increase the share of specialty fibers as a percentage
of revenue to 50 percent by 2020. Next to the capacity expansion in
Heiligenkreuz (Austria), to be completed in the second quarter of 2018, and the
new plant in Mobile, Alabama (USA), with a start-up in 2019, Lenzing announced