Lenzing AG

Earnings Release • Nov 6, 2019

www.lenzing.com

Interim Report 01-09/2019 Lenzing Group

EUR mn	01-09/2019	01-09/2018	Change
Revenue	1,617.9	1,636.2	$(1.1)$ %
EBITDA (earnings before interest, tax, depreciation and amortization)	266.9	290.6	$(8.1)$ %
EBITDA margin	16.5%	17.8%
EBIT (earnings before interest and tax)	153.5	190.3	$(19.3)$ %
EBIT margin	9.5%	11.6%
EBT (earnings before tax)	151.9	177.9	$(14.6)$ %
Net profit for the year (/the period)	112.9	133.8	$(15.6)$ %
Earnings per share in EUR	4.41	5.06	$(12.8)$ %
Key cash flow figures
EUR mn	01-09/2019	01-09/2018	Change
Gross cash flow	242.5	223.4	8.5%
Cash flow from operating activities	171.0	247.3	$(30.8)$ %
Free cash flow	11.4	74.3	$(84.6)$ %
CAPEX	159.7	174.1	$(8.3)$ %
EUR mn	30/09/2019	31/12/2018	Change
Liquid assets	260.6	254.4	2.4%
Unused credit facilities	219.4	341.6	$(35.8)$ %
Key balance sheet figures
EUR mn	30/09/2019	31/12/2018	Change
Total assets	2,801.0	2,630.9	6.5%
Adjusted equity	1,553.5	1,553.0	0.0%
Adjusted equity ratio	55.5%	59.0%
Net financial debt	372.1	219.4	69.6%
Net debt	481.5	322.8	49.2%
Net gearing	24.0%	14.1%
Trading working capital	474.4	444.4	6.7%
Trading working capital to annualized group revenue	22.4%	20.6%
Key stock market figures
EUR	30/09/2019	31/12/2018	Change
Market capitalization in mn	2,345.7	2,109.4	11.2%
Share price	88.35	79.45	11.2%
Employees	30/09/2019	31/12/2018	Change
Number (headcount)	6,988	6,839	2.2%

Geschäftsentwicklung Management Report 01-09/2019

Segment Fasern Die weitere Optimierung der Produktionsabläufe mit dem Ziel der Kapazitätsausweitung sowie der Bau von neuen Produktions- linien stellten neben dem Ausbau der Marktpräsenz in Asien und der Türkei den Kern der Aktivitäten im Geschäftsjahr 2017 dar. Die gute Nachfrage nach LENZING™ Fasern führte zu einer sehr hohen Auslastung der Zellstoff- und Faserproduktion. The global economy1 recorded only subdued growth in the first three quarters of the year, among other things due to trade tensions between the USA and China. The risk of a no-deal Brexit and growing geopolitical tensions led to additional uncertainty. In its World Economic Outlook, the International Monetary Fund projected a decline in global growth from 3.6 percent in 2018 to 3 percent in 2019, the lowest level since 2008/2009. A growth rate of 3.4 percent is forecast for 2020.

Angebot und Nachfrage am mitteleuropäischen Holzmarkt rund um die beiden Zellstoff-Produktionsstandorte Lenzing (Ös- terreich) und Paskov (Tschechien) waren 2017 durch klimatische, ökologische und geopolitische Faktoren stark beeinflusst. Ein langer und kalter Winter sorgte zu Beginn des Jahres 2017 für einen erhöhten Bedarf an Buchenbrennholz. Das nach wie vor geltende Ex-The trade conflict between the USA and China led to uncertainty and significantly reduced demand, with simultaneous oversupply, throughout the textile value chain, resulting in underutilization at fiber producers' plants, spinning plants and their downstream customers. Therefore, there is substantial pressure on all fiber types in the global fiber markets2 . The prices for cotton, polyester and standard viscose dropped, in part significantly, while the prices for wood-based specialty fibers held up.

keit am Holzmarkt zusätzlich ein. Die Preise für Nadelholz blieben aufgrund anhaltender Prob- leme mit Schädlingen und Sturmereignissen im weiteren Verlauf des After the cotton market recovered slightly in the first quarter of 2019, prices fell again in the second quarter as another high-yield harvest is expected for the 2019/2020 season. In the third quarter, the decline was slightly weaker, but still noticeable.

im Jahr 2016 insbesondere im Nordosten Tschechiens dazu, dass Forstbetriebe mehr Holz als im Nachhaltshiebsatz geplant schlägern mussten und hohe Mengen an Fichtenholz auf den Markt kamen. Hinzu kamen in Süddeutschland, Österreich und Tschechien Although the polyester market had a strong start to the year 2019, demand has dropped significantly since the Chinese New Year and fell short of expectations. As raw material prices declined, prices continued to drop in the course of the year.

"Herwart" auf den Markt. Das Laubholz-Angebot war im Gegensatz dazu geringer als im Vorjahr, weil aufgrund des hohen Zwangsanfalles bei Nadelholz weniger Laubholz geschla- gen wurde. Zudem beeinflusste ein Projekt der ungarischen Re- gierung zur Unterstützung von bedürftigen Menschen mit Bu- chen-Brennholz den Markt. Having started at a level of 13,560 CNY/ton, the prices for standard viscose continued to decrease in 2019 due to new capacities and a decline in demand, and amounted to 11,100 CNY/ton in June. After stabilizing briefly, prices recorded another significant drop and reached a new historic low of 10,500 CNY/ton in September.

Für das Werk in Lenzing erforderten diese Marktverzerrungen eine Verschiebung des Einkaufsvolumens in Richtung Westeuropa. Die Versorgung mit Buchenholz konnte dadurch sichergestellt und das Winterlager ausreichend gefüllt werden. Die Preise für Buchenholz wurden hauptsächlich aufgrund langfristiger Verträge auf konstant niedrigem Niveau gehalten. Durch das Überangebot Label ausgezeichnet. Diese Zertifizierung ist ein weiterer offiziel-The prices for wood-based specialty fibers developed positively in the first three quarters. The decline in demand for textile fibers in general, coupled with the significant price difference to other fiber types, put a strain on Lenzing's partners along the value chain for specialty fibers. Lenzing will continue to specifically support its value chain partners.

Gruppe in Paskov über ein gut gefülltes Lager für den Winter und die günstigen Einstiegspreise aus dem Vorjahr konn- ten fortgeschrieben werden. Im Berichtsjahr erfolgte zudem eine Auditierung der beiden Forstzertifizierungssysteme Forest Stewardship Council® (FSC®) und Programme for the Endorsement of Forest CertificationTM basiert in der Lenzing Gruppe auf Spotmarktpreisen. Die Strom-The Lenzing Group continued its solid business development in the third quarter of 2019 although the significantly lower prices for standard viscose were tangible. The disciplined implementation of the sCore TEN strategy and the focus on specialty fibers once again had a positive impact on the revenue and earnings devel-opment and the effect caused by the historically low prices for standard viscose was considerably reduced.

Zellstoff Der Bereich Zellstoff & Holz versorgt die Faserproduktions- standorte der Lenzing Gruppe mit hochwertigem Faserzellstoff und betreibt an den Standorten Lenzing und Paskov eigene Fa serzellstoffwerke. Damit werden rund 56 Prozent des Zellstoffbe- darfes der Lenzing Gruppe abgedeckt. Der Rest wird auf Basis langfristi-Revenue decreased by 5.6 percent in the third quarter of 2019 and amounted to EUR 529.4 mn. EBITDA (earnings before interest, tax, depreciation and amortization) declined by 10.6 percent to EUR 85.7 mn and EBIT (earnings before interest and tax) fell by 22.2 percent to EUR 47.9 mn. EBT (earnings before tax) dropped by 13.6 percent to EUR 49.3 mn and net profit was down 15 percent to EUR 36.1 mn.

für die Erzeugung von Cellulosefasern aus Lenzing und wird aus dem nachwachsenden Rohstoff Holz gewonnen. In den beiden Zellstoffwerken der Lenzing Gruppe wurden 2017 insgesamt rund 560.000 Tonnen Faserzellstoff produziert, rund 300.000 Tonnen davon in Lenzing und rund 260.000 Ton- nen in Paskov. Der Spotmarktpreis für Faserzellstoff stieg im Vor- jahresvergleich leicht an. Im Durchschnitt 2017 lag der Marktpreis im Be-Revenue of the first three quarters declined by 1.1 percent year-on-year to EUR 1.62 bn, which was primarily attributable to the falling standard viscose prices. Based on a further product mix optimization and higher prices for specialty fibers, the decrease in revenue was largely offset. The share of specialty fibers in revenue rose from 44.1 percent in the comparative period of the previous year to 49.8 percent. More favorable currency relations also had a positive impact on the revenue development.

jahr 2016. Der 2016 beschlossene Ausbau der Produktionskapazitäten an beiden Produktionsstandorten sowie die Modernisierung der Anlagen im Volumen von EUR 100 Mio. laufen planmäßig. Biobasierte Materialien Die Märkte für biobasierte Materialien entwickelten sich im Vorjahr günstig. Die Produktion von Xylose stieg weiter an. Bei Essigsäure EBITDA (earnings before interest, tax, depreciation and amortization) recorded a decline by 8.1 percent to EUR 266.9 mn during the same period, leading to a lower EBITDA margin of 16.5 percent compared with 17.8 percent in the first three quarters of the previous year. EBIT (earnings before interest and tax) fell by 19.3 percent to EUR 153.5 mn. The EBIT margin dropped to 9.5 percent (from 11.6 percent in the comparative period). EBT (earnings before tax) was down 14.6 percent to EUR 151.9 mn and net profit decreased by 15.6 percent to EUR 112.9 mn. Earnings per share fell by 12.8 percent to EUR 4.41.

fural sorgte eine Angebotsverknappung in China für einen starken Preisanstieg und damit zu einer deutlichen Ertrags- steigerung. Die von der Lenzing Gruppe in ihrer Bioraffinerie hergestell- ten biobasierten Materialien Essigsäure, Furfural und Magnesium- Lignosulfonat wurden im Geschäftsjahr 2017 vom US- amerikanischen Landwirtschaftsministerium (USDA) mit dem Biobased Product Gross cash flow in the first three quarters of 2019 rose by 8.5 percent compared to the first three quarters of the previous year and amounted to EUR 242.5 mn. This increase was above all due to non-cash effects in net profit for the period. Cash flow from operating activities declined by 30.8 percent to EUR 171 mn during the same period. Free cash flow was down 84.6 percent to EUR 11.4 mn due to continued high investing activities.

ler Nachweis dafür, dass die genannten Erzeugnis- se der Lenzing Gruppe zu 100 Prozent aus der natürlichen und nachwachsenden Ressource Holz gewonnen werden. Energie Die Einkaufsstrategie für die Hauptkostenträger Strom und Erdgas CAPEX (investments in intangible assets and property, plant and equipment) dropped by 8.3 percent to EUR 159.7 mn during the reporting period. This decline is primarily attributable to the com-pletion of the expansion project in Heiligenkreuz in 2018 and the ongoing planning for major projects in Brazil and Thailand, which will only have an effect on the investment volume in the coming quarters.

preise verzeichneten 2017 eine deutliche Trendumkehr und legten gerechnet über das Jahr 2017 um knapp 30 Prozent zu, nachdem sie zuvor fünf Jahre hintereinander gesunken waren. Die Kältewelle in Europa hatte insbesondere zu Jahresbeginn starke Preiserhöhungen zur Folge. Gleichzeitig standen in Frankreich mehrere Kraftwerke nur eingeschränkt zur Verfügung. Generell waren die Energiemärkte im Berichtsjahr von steigenden Preisen geprägt. Auch die Öl- und Kohlepreise verzeichneten nach meh- reren Jahren mit niedrigen Preisen wieder deutliche Anstiege. Trotz guter Verfügbarkeit von Flüssig-Erdgas schlug sich die Preisentwicklung von Erdöl auch an den europäischen Gasmärk- ten durch. Auch hier lag das Plus bei mehr als 30 Prozent. Total assets increased by 6.5 percent in comparison with December 31, 2018 and amounted to EUR 2.8 bn as at September 30, 2019. Adjusted equity remains unchanged at EUR 1.6 bn; the adjusted equity ratio decreased from 59 percent to 55.5 percent during the reporting period. Net financial debt, at EUR 372.1 mn as at September 30, 2019 exceeded the figure of December 31, 2018 of EUR 219.4 mn due to the high investment volume and the related financing requirements, but is still at a solid level. Trading working capital rose by 6.7 percent to EUR 474.4 mn in the re-porting period mainly due to higher inventories (especially raw materials and supplies). The ratio of trading working capital to annualized Group revenue rose from

und FSC®-zertifizierten oder -kontrollierten Quellen stammt. Um-1 Source: IMF, World Economic Outlook, October 2019

strittene Holzquellen konnten sicher ausgeschlossen werden. Bioraffinerie ² Sources: International Cotton Advisory Committee (ICAC), IMF, Cotton Outlook, CCF Group (China Chemical Fibers and Textiles Consulting), Food and Agriculture Organization (FAO)

20.6 percent at December 31, 2018 to 22.4 percent at September 30, 2019.

In the first three quarters of 2019, investment activities in the Lenzing Group focused on the expansion of the share of specialty fibers in line with the sCore TEN strategy.

Lenzing puts the focus on stable and profitable growth as well as an improvement of the ecological footprint of the textile and nonwovens industries by expanding the production of specialty fibers. The decision to build a state-of-the-art lyocell plant with a capacity of 100,000 tons in Prachinburi (Thailand) is the next logical step to achieve this goal. In the third quarter, Lenzing chose Wood Plc as a partner for detailed engineering, purchasing and construction management and supervision; the related Engineering, Procurement and Construction Management contract (EPCM) was signed on August 15. In addition, the conversion of the production capacities from standard viscose to LENZING™ ECOVERO™ branded specialty viscose fibers was also continued during the reporting period.

Increasing the self-supply with dissolving wood pulp is another key element of the sCore TEN strategy. Lenzing and the Brazilian company Duratex continue to advance the plannings and preparations for the construction of a 450,000 ton dissolving wood pulp plant in the state of Minas Gerais (Brazil). The basic engineering, site grading and the appli-cations for required permits are proceeding according to plan. In addition, the expansion and modernization of the pulp plant in Lenzing were completed in the third quarter.

Lenzing will use blockchain technology to support its TENCEL™ branded fiber business, ensuring complete transparency and traceability for brands and consumers of its fibers in the finished garment. In the second quarter Lenzing announced a cooperation with the platform of the technology company TextileGenesis™ to accomplish this ambition; in the third quarter, Lenzing presented its first pilot project at the Hong Kong Fashion Summit.

The TENCEL™ brand's visibility was further increased through co-branding during the reporting period. The digital marketing concept "Where to buy" was introduced on the product website www.tencel.com in the first quarter of 2019. Based on this concept, products made from TENCEL™ fibers can be presented and linked in the online shops of more than 110 partners, including brands like H&M, Levi's, Allbirds, Victoria Secret, Esprit, Pottery Barn and Asos.

Lenzing invests more than EUR 100 mn in energy-saving measures, the conversion to renewable energies and in new technologies, thus strengthening its position as a front runner in climate protection both in the production industry and in particular also in the fiber industry. In the second quarter Lenzing announced its ambitious climate strategy. The goal is to reduce net emissions of greenhouse gases to zero by 2050. An important milestone on the way to becoming climate-neutral is set for the year 2030. By then Lenzing has committed to reduce emissions per ton of fibers and pulp by 50 percent compared with 2017.

Outlook

The International Monetary Fund expects a slowdown of global economic growth to 3 percent in 2019, mainly driven by increasing protectionist tendencies and growing geopolitical tensions. The currency environment in the regions relevant to Lenzing will remain volatile.

Global fiber demand has weakened. Trade conflicts have caused nervousness and declining demand throughout the textile value chain. According to preliminary calculations, cotton inventory levels will continue to increase in the 2019/20 season because a good harvest is expected. The price levels for cotton and polyester are expected to remain subdued. Capacity expansions for standard viscose, coupled with sluggish demand due to the trade conflicts, caused higher pressure on prices, which fell to a new historic low in the third quarter of 2019. In specialty fibers, the Lenzing Group expects a comparatively positive development of its business.

Driven by the challenging situation in standard viscose and low paper pulp prices, prices for dissolving wood pulp remain on a comparatively low level. Caustic soda prices in Asia have already declined significantly over the past months; this development is now also noticeable in Europe.

The very challenging and volatile market environment in general, paired with erratic developments in the trade disputes between the major economic blocks plus the high level of uncertainty in the textile value chain, significantly impacts earnings visibility. Based on the above mentioned economic environment, the Lenzing Group expects the result for 2019 to be slightly below the level of 2018. Above developments reassure the Lenzing Group in its chosen strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue to focus growth with specialty fibers.

Lenzing, October 31, 2019 Lenzing Aktiengesellschaft

The Management Board

Stefan Doboczky Chief Executive Officer Chairman of the Management Board

Robert van de Kerkhof Chief Commercial Officer Member of the Management Board

Thomas Obendrauf Chief Financial Officer Member of the Management Board

Heiko Arnold Chief Technology Officer Member of the Management Board

Consolidated Income Statement (condensed)

for the period from January 1 to September 30, 2019

				EUR mn
	07-09/2019	07-09/2018	01-09/2019	01-09/2018
Revenue	529.4	560.9	1,617.9	1,636.2
Change in inventories of finished goods and work in progress	5.0	1.9	21.6	4.7
Own work capitalized	13.3	11.6	36.7	39.8
Other operating income	18.2	11.7	65.5	41.2
Cost of material and other purchased services	(314.8)	(331.3)	(974.7)	(957.4)
Personnel expenses	(99.1)	(96.4)	(299.9)	(282.4)
Other operating expenses	(66.3)	(62.7)	(200.3)	(191.6)
Earnings before interest, tax, depreciation and amortization (EBITDA) 1	85.7	95.8	266.9	290.6
Amortization of intangible assets and depreciation of property, plant and equipment and income from the release of investment grants	(37.8)	(34.2)	(113.4)	(100.3)
Earnings before interest and tax (EBIT) 1	47.9	61.6	153.5	190.3
Financial result	1.4	(3.7)	(1.6)	(11.7)
Allocation of profit or loss to and measurement result of puttable non-controlling interests	0.0	(0.8)	0.0	(0.7)
Earnings before tax (EBT) 1	49.3	57.0	151.9	177.9
Income tax expense	(13.2)	(14.5)	(39.0)	(44.1)
Net profit for the period	36.1	42.5	112.9	133.8
Net profit for the period attributable to shareholders of Lenzing AG	38.4	42.9	117.1	134.3
Net profit attributable to non-controlling interests	(2.2)	(0.4)	(4.2)	(0.4)
Earnings per share	EUR	EUR	EUR	EUR
$Diluted = basic$	1.45	1.62	4.41	5.06

1) EBITDA: Operating result before depreciation and amortization, resp. earnings before interest, tax, depreciation on property, plant and equipment and amortization of intangible assets and before income from the release of investment grants.

EBIT: Operating result, resp. earnings before interest and tax.

EBT: Earnings before tax.

				EUR mn
	07-09/2019	07-09/2018	01-09/2019	01-09/2018
Net profit for the period as per consolidated income statement	36.1	42.5	112.9	133.8
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit liability	0.0	(0.6)	(6.7)	(0.6)
Financial assets measured at fair value through other comprehensive income	0.0	0.1	1.1	1.0
Income tax relating to these components of other comprehensive income	0.0	0.2	1.4	0.0
	0.0	(0.2)	(4.2)	0.4
Items that may be reclassified to profit or loss
Foreign operations - foreign currency translation differences	14.2	3.2	21.9	12.4
Financial assets measured at fair value through other comprehensive income	0.0	(0.1)	(0.1)	(0.1)
Cash flow hedges	(5.1)	3.3	(0.1)	(9.7)
Income tax relating to these components of other comprehensive income	1.2	(0.6)	0.1	2.0
Investments accounted for using the equity method - share of other comprehensive income (net of tax)	(0.6)	(0.1)	(0.3)	(0.1)
	9.7	5.8	21.4	4.5
Other comprehensive income - net of tax	9.7	5.5	17.3	4.9
Total comprehensive income	45.8	48.1	130.2	138.8
Attributable to shareholders of Lenzing AG	46.9	48.2	133.0	138.1
Attributable to non-controlling interests	(1.1)	(0.1)	(2.8)	0.6

		EUR mn
Assets	30/09/2019	31/12/2018
Intangible assets, property, plant and equipment and right-of-use assets	1,614.5	1,516.7
Investments accounted for using the equity method and financial assets	56.9	50.0
Deferred tax assets	5.6	5.1
Other non-current assets	33.6	23.6
Non-current assets	1,710.6	1,595.4
Inventories	410.1	396.5
Trade receivables	309.5	299.6
Other current assets	124.9	95.5
Cash and cash equivalents	246.0	243.9
Current assets	1,090.5	1,035.5
Total assets	2,801.0	2,630.9
Equity and liabilities	30/09/2019	31/12/2018
Equity attributable to shareholders of Lenzing AG	1,502.0	1,501.7
Non-controlling interests	29.2	32.2
Equity	1,531.2	1,533.9
Financial liabilities	451.7	307.6
Deferred tax liabilities	36.0	50.4
Provisions	132.7	126.5
Other non-current liabilities	21.7	21.0
Non-current liabilities	642.1	505.5
Financial liabilities	181.0	166.2
Trade payables	245.2	251.7
Provisions	108.6	107.9
Other current liabilities	93.0	65.7
Current liabilities	627.7	591.5
Total equity and liabilities	2,801.0	2,630.9

Consolidated Statement of Changes in Equity (condensed)

for the period from January 1 to September 30, 2019

EUR mn
	Share capital	Capital reserves	Other reserves	Retained earnings	Equity attributable to shareholders of Lenzing AG	Non- controlling interests	Equity
As at 01/01/2018 (previously)	27.6	133.9	(1.6)	1,316.4	1,476.3	31.6	1,507.9
First-time adoption of IFRS 9 (Financial Instruments) 1	0.0	0.0	4.0	0.0	3.9	$\circ$	3.9
As at 01/01/2018 (adjusted)	27.6	133.9	2.4	1,316.4	1,480.3	31.6	1,511.8
Total comprehensive income	0.0	0.0	3.8	134.3	138.1	0.6	138.8
Acquisition/disposal of non-controlling interests and other changes in the scope of consolidation	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Dividends	0.0	0.0	0.0	(132.8)	(132.8)	(0.2)	(132.9)
As at 30/09/2018	27.6	133.9	6.1	1,318.1	1,485.6	32.1	1,517.7
As at 01/01/2019	27.6	133.9	7.5	1,332.8	1,501.7	32.2	1,533.9
Total comprehensive income	0.0	0.0	15.9	117.1	133.0	(2.8)	130.2
Acquisition/disposal of non-controlling interests and other changes in the scope of consolidation	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Dividends	0.0	0.0	0.0	(132.8)	(132.8)	(0.1)	(132.9)
As at 30/09/2019	27.6	133.9	23.3	1,317.2	1,502.0	29.2	1,531.2

1) The first-time adoption of IFRS 9 as of January 1, 2018 resulted in an increase in equity with no effect on profit or loss arising primarily from the reclassification and measurement of equity instruments that were previously measured at cost and are now measured at fair value through other comprehensive income. Additional details are provided in note 2 to the consolidated financial statements 2018.

Consolidated Statement of Cash Flows (condensed)

for the period from January 1 to September 30, 2019

			EUR mn
		01-09/2019	01-09/2018
	Net profit for the period	112.9	133.8
	Amortization of intangible assets and depreciation of property, plant and equipment	115.2	102.3
	-/+ Other non-cash income / expenses	14.3	(12.7)
	Gross cash flow	242.5	223.4
	+/- Change in inventories	(34.7)	(29.6)
	+/- Change in receivables	(31.2)	(10.5)
	+/- Change in liabilities	(5.6)	64.0
	Change in working capital	(71.5)	23.9
	Cash flow from operating activities	171.0	247.3
	Acquisition of intangible assets, property, plant and equipment (CAPEX)	(159.7)	(174.1)
	Acquisition of financial assets and investments accounted for using the equity method	(7.5)	(1.5)
$\ddot{}$	Proceeds from the sale of intangible assets, property, plant and equipment	0.1	1.2
	Proceeds from the sale/repayment of financial assets and the sale of investments accounted for using the equity method	3.8	2.2
$\begin{array}{c} + \end{array}$	Net inflow from the sale and disposal of subsidiaries and other business areas	0.0	0.1
	Cash flow from investing activities	(163.4)	(172.1)
	Distribution to shareholders	(132.9)	(132.9)
$\ddot{}$	Investment grants	1.8	0.2
$^{+}$	Increase in other financial liabilities	207.4	73.6
	Repayment of bonds and private placements	0.0	0.0
	Repayment of other financial liabilities	(85.5)	(59.0)
	Cash flow from financing activities	(9.3)	(118.1)
	Total change in liquid funds	(1.7)	(43.0)
	Liquid funds at the beginning of the year	243.9	306.5
	Currency translation adjustment relating to liquid funds	3.8	0.2
Liquid funds at the end of the period		246.0	263.7
	Additional information on payments in the cash flow from operating activities:
	Interest payments received	1.3	1.3
	Interest payments made	4.4	4.1
Income taxes paid		45.2	59.2

The condensed consolidated interim financial statements as at September 30, 2019 were prepared based on IAS 34 (Interim Financial Reporting). They are based on the consolidated financial statements as at December 31, 2018 and should therefore always be read in conjunction with these statements.

The reporting currency is euro (EUR). The figures shown in these condensed consolidated interim financial statements and in the notes, unless stated otherwise, have been rounded up to the next million ("mn") to one decimal place. Arithmetic differences due to

rounding effects can occur when adding up rounded amounts and percentages using automatic tools.

These condensed consolidated interim financial statements of the Lenzing Group have undergone neither a full audit nor a review by an auditor.

www.lenzing.com

Imprint

Copyright and published by Lenzing Aktiengesellschaft 4860 Lenzing, Austria www.lenzing.com

Edited by:

Filip Miermans, Daniel Winkelmeier (Corporate Communications & Investor Relations, Lenzing AG) Graphic design: ElectricArts Werbeagentur GmbH

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