EQS-News: Lenzing AG: Lenzing enhances its corporate strategy: Full steam ahead on profitable growth and transformation from a sustainability into a circularity champion
EQS-News: Lenzing AG / Key word(s): Dividend/Strategic Company Decision
Lenzing AG: Lenzing enhances its corporate strategy: Full steam ahead on
profitable growth and transformation from a sustainability into a
circularity champion
22.06.2022 / 13:32
The issuer is solely responsible for the content of this announcement.
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Lenzing enhances its corporate strategy: Full steam ahead on profitable
growth and transformation from a sustainability into a circularity
champion
• Lenzing to accelerate its profitable growth journey after the
successful start-up of its recent capacity additions
• Strong financial target set for 2027: EBITDA above EUR 1 bn, ROCE
above 12%
• Continued focus on sustainable and high-quality premium fibers for
textiles and nonwovens
• Intensification of the transition from a linear to a circular business
model
• Commitment to consistently provide attractive dividends to
shareholders with a minimum dividend of EUR 4.50 per share as of the
2023 financial year
Lenzing – In recent months, the Managing Board of Lenzing AG and its
leadership team carried out a comprehensive review of its corporate
strategy to maximize the use of growth opportunities and enhance the
company’s leading position in sustainability and circularity. As a result,
Lenzing will sharpen its corporate focus, prioritize projects that best
serve its customers’ needs, while contributing positively to society and
the environment. At the same time, this strategy will improve its
financial performance and yield attractive returns on investments.
Sustainable innovations based on strong product brands
Lenzing will continue to leverage its leading position in the growing
market for sustainable cellulosic fibers by innovating, developing,
manufacturing and distributing high-quality premium products. As a key
value driver, Lenzing will further intensify its ingredient branding
activities as this has proven to be an effective means of communicating
the superior properties and sustainability advantages of its nature-based
fibers more broadly in the customer and consumer spheres.
By repositioning its product brands, the Lenzing Group has been sending a
strong message to consumers since 2018. With TENCEL™ and LENZING™ ECOVERO™
as umbrella brands for all specialty products in the textile segment,
VEOCEL™ as the umbrella brand for all specialty nonwoven products and
LENZING™ for all industrial applications, the company is showcasing its
strengths in a targeted manner.
“We will maintain our pioneering role by further strengthening the
integration of recycling and thereby accelerate the transformation of the
textile business from a linear to a circular model. As champions of
sustainability, we know that moving towards a circular economy is vital in
the textile and nonwoven industries,” comments Robert van de Kerkhof,
Chief Commercial Officer Fibers.
Further expansion of sustainable energy sources
“As part of the strategy process, we also reviewed our current energy mix.
The result of this analysis is that, following the construction of the
largest photovoltaic plant in Upper Austria, we will also invest in
sustainable energy sources at all other sites”, says Christian Skilich,
Chief Pulp Officer.
Strong set of financial targets
After the successful start-up and market launch of key investments in
Brazil and Thailand, as well as sustainability investments in existing
plants during the last two years, the new corporate strategy is based on
the positive resonance within the market. The core outcome of the
corporate strategy has led to higher financial targets for 2027:
• EBITDA: above EUR 1 bn (versus EUR 363 mn in 2021)
• ROCE[1][1]: above 12% (versus 8.1 % in 2021)
• Net financial debt/EBITDA: below 2.5x (versus 2.7x as of December 31,
2021)
Stephan Sielaff, Chief Executive Officer of Lenzing AG comments: “We will
continue to drive excellence and make significant investments while
maintaining a balanced risk profile at all times. Based on this strategy,
we will further enhance our financial performance by significantly
increasing both EBITDA and ROCE by 2027, allowing us to drive up total
shareholder returns substantially while consistently paying attractive
dividends, assuming a healthy economic environment prevails.”
Dividend strategy revised
Furthermore, the Managing Board of Lenzing AG decided to revise its
dividend policy. As of the 2023 financial year (with payment scheduled for
2024), Lenzing plans to pay an annual dividend of at least EUR 4.50 per
share (adjusted for inflation). The revised dividend policy is subject to
the approval of the Supervisory Board. Payment of the dividend in any year
will be subject to the specific dividend proposals of the Managing Board
and the Supervisory Board. These proposals may deviate from the new
dividend policy if appropriate under the then prevailing circumstances and
will be subject to the approval of the Annual General Meeting.
Photo download:
[2] https://mediadb.lenzing.com/pinaccess/showpin.do?pinCode=jlrLDInbvySU
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Your contact for
Public Relations: Investor Relations:
Dominic Köfner Sébastien Knus
Vice President Corporate Communications & Vice President Capital Markets
Public Affairs Lenzing Aktiengesellschaft
Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing,
Werkstraße 2, 4860 Lenzing, Austria Austria
Phone +43 7672 701 2743 Phone +43 7672 701 3599
E-mail [3]media@lenzing.com E-mail [5]s.knus@lenzing.com
Web [4] www.lenzing.com Web [6] www.lenzing.com
About the Lenzing Group
The Lenzing Group stands for ecologically responsible production of
specialty fibers made from the renewable raw material wood. As an
innovation leader, Lenzing is a partner of global textile and nonwoven
manufacturers and drives many new technological developments.
The Lenzing Group’s high-quality fibers form the basis for a variety of
textile applications ranging from elegant clothing to versatile denims and
high-performance sports clothing. Due to their consistent high quality,
their biodegradability and compostability Lenzing fibers are also highly
suitable for hygiene products and agricultural applications.
The business model of the Lenzing Group goes far beyond that of a
traditional fiber producer. Together with its customers and partners,
Lenzing develops innovative products along the value chain, creating added
value for consumers. The Lenzing Group strives for the efficient
utilization and processing of all raw materials and offers solutions to
help redirect the textile sector towards a closed-loop economy. In order
to reduce the speed of global warming and to accomplish the targets of the
Paris Climate Agreement and the “Green Deal” of the EU Commission, Lenzing
has a clear vision: namely to make a zero-carbon future come true.
Key Facts & Figures Lenzing Group 2021
Revenue: EUR 2.19 bn
Nominal capacity: 1,145,000 tonnes
Number of employees (headcount): 7,958
TENCEL™, VEOCEL™, LENZING™, REFIBRA™, ECOVERO™, LENZING MODAL™, LENZING
VISCOSE™, MICROMODAL™ and PROMODAL™ are trademarks of Lenzing AG.
[7]^[1] Adjusted for large plants under construction and ramp-up
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22.06.2022 This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: Lenzing AG
4860 Lenzing
Austria
Phone: +43 7672-701-0
Fax: +43 7672-96301
E-mail: office@lenzing.com
Internet: www.lenzing.com
ISIN: AT0000644505
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1381379
End of News EQS News Service
1381379 22.06.2022
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