From the Sector

The Supervisory Board of Lenzing AG has appointed Georg Kasperkovitz as a member of the Managing Board and Chief Operations Officer (COO) of Lenzing AG with effect from June 1, 2025. Georg Kasperkovitz (58) brings more than 15 years of experience in various management functions in Europe, North America and Asia – Lenzing’s most important production regions and markets. During his career, Kasperkovitz has held positions including Business Unit CEO at the international packaging and paper company Mondi plc (2016-2019), CEO of Rail Cargo Austria AG (2012-2016) and at the international consulting firm McKinsey (1999-2012, most recently as a partner). Georg Kasperkovitz is a qualified mechanical engineer (Dr. techn., TU Vienna) and holds an MBA from Harvard Business School.

At Lenzing, as COO in the now four-member Managing Board, he will manage the company-wide fiber production sites and drive forward the ongoing performance program and, thus, operational cost excellence and the transformation of the entire company. He will also take over the management and further development of the site in Lenzing (Upper Austria).

Patrick Lackenbucher, Chairman of the Supervisory Board of Lenzing AG, comments: “Lenzing AG has been able to report a continuous increase in earnings in recent quarters – despite the difficult market environment. The current macroeconomic challenges, persistently high energy costs and intensified global competition continue to require full focus on the implementation and further development of the current performance program. Profitability is crucial for Lenzing in order to survive in global competition in the long term and to be able to continue investing in new products and markets. With Georg Kasperkovitz, we are therefore strengthening our Managing Board with sound operational transformation expertise – and relevant experience in the nonwovens market.”

On April 17, 2025, the 81st Annual General Meeting of Lenzing AG adopted the resolution to discharge the members of the Managing and Supervisory Boards acting in the 2024 financial year and set the remuneration of the Supervisory Board members for the 2025 financial year.

In addition, a revised remuneration policy was approved. In order to align the remuneration policy for the Managing Board even more closely with the interests of shareholders, the link to share price performance in performance-based remuneration, in particular, was further strengthened. The new remuneration policy of Lenzing AG is also linked to non-financial sustainability criteria (ESG) in addition to financial performance criteria.

KPMG Austria GmbH Wirtschaftsprüfungs- u. Steuerberatungsgesellschaft was appointed as the auditor for both the separate and the consolidated financial statements and also as the auditor of the sustainability reporting for the 2025 financial year.

Elections to the Supervisory Board
The Annual General Meeting also elected Patrick Lackenbucher and Leonardo Grimaldi as new members of the Supervisory Board of Lenzing AG until the end of the Annual General Meeting that adopts the resolution that discharges the Supervisory Board members acting in the 2029 financial year. The mandate of Stefan Fida was also extended until the end of the Annual General Meeting that adopts the resolution that discharges the Supervisory Board members acting in the 2029 financial year.

The elections to the Supervisory Board were due to the expiry of the terms of office of Stefan Fida and of Cord Prinzhorn, who is thereby stepping down from the Supervisory Board in order to concentrate in the future on both existing as well as new tasks within the B&C Group. Marcelo Feriozzi Bacci had already stepped down from the Supervisory Board at his own request on December 6, 2024.

As a consequence, the Supervisory Board of Lenzing AG continues to consist of ten members elected by the Annual General Meeting: Carlos Aníbal de Almeida Junior, Cornelius Baur, Helmut Bernkopf, Stefan Fida, Markus Fürst, Franz Gasselsberger, Leonardo Grimaldi, Patrick Lackenbucher, Gerhard Schwartz and Astrid Skala-Kuhmann. Stefan Ertl, Stephan Gruber, Bonita Haag, Helmut Kirchmair and Johann Schernberger were delegated to the Supervisory Board by the Works Council.

At the constituent meeting of the Supervisory Board following the Annual General Meeting, Patrick Lackenbucher was elected Chairman, Carlos de Almeida was elected First Deputy Chairman and Stefan Fida was elected Second Deputy Chairman of the Supervisory Board.

The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, announces personnel changes in the company’s Managing Board. The Supervisory Board of Lenzing AG and Dr. Walter Bickel, Chief Transformation Officer of Lenzing AG, have mutually agreed to end the temporary mandate of Mr. Bickel and that Mr. Bickel will step down from his operational activities at the end of March 2025.

Mr. Bickel was appointed to the Managing Board of Lenzing AG as of April 15, 2024 to strengthen the Lenzing Managing Board and to be responsible for the further development and implementation of the performance program. Under his leadership, a significant overachievement of the planned contributions from the performance program could be realized. The basis for future significant improvement steps is established, and the program has been structured in a way that it can now be continued by Lenzing AG seamlessly.

The Lenzing Group’s holistic performance program pursues the overarching goal of significantly increasing long-term resilience to crises and greater agility in order to respond to market changes. The program initiatives are primarily aimed at improving EBITDA and generating free cash flow through increased profitability and sustainable cost excellence. Numerous activities are being undertaken to strengthen sales, such as acquiring new customers for the most important fiber types and expanding into new markets, which are already having a positive impact on sales. In addition, the Managing Board expects significant cost savings, of which more than EUR 130 m could already be realized in 2024.

In addition to the positive effects in the 2024 financial year on revenue development (+5.7 % increase in revenue compared to 2023) and earnings development (+30.4 % increase in EBITDA compared to 2023), the performance program also improved free cash flow to EUR 167.0 mn (compared to minus EUR 122.8 mn in 2023). Lenzing AG will continue to consistently implement the ongoing performance program with the aim of achieving annualized cost savings of over EUR 180 mn from the 2025 financial year onwards.

The Lenzing Group is presenting the Lenzing Young Scientist Award at the Dornbirn Global Fiber Congress (GFC) from September 10 to 12, 2025 for bachelor, master and doctoral students who develop innovative solutions to ecological challenges in the fiber and textile industry. The deadline for applications is June 30, 2025. The best thesis by Bachelor's and Master's students will receive a prize of EUR 3,000, while the best doctoral thesis will receive EUR 5,000.

For the fourth time, the Lenzing Group honors young researchers with the Lenzing Young Scientist Award for excellent research work in the fiber and textile sector. The Dornbirn-GFC, as a platform for international exchange of experience in the field of fibers, offers an ideal stage for this research competition. Bachelor's and Master's students can submit their scientific work under the guiding theme “Unlimited inspiration from nature: Together we research sustainable innovations based on cellulose, including regenerated cellulose fibers and films, as well as cellulose composites” and face a jury of renowned experts from the industry. The aim is to support students who inspire the industry with their research results and create a platform for networking with the textile and fiber industry.

Austrian Fibers Institute as organizer of the Dornbirn GFC
For the 64th time, the Austrian Fiber Institute is organizing the Dornbirn Fiber Congress on a non-profit basis and will provide the framework for presenting the Lenzing Young Scientist Award from September 10 to 12, 2025. The Austrian Fiber Institute, based in Vienna, was founded in 1960 by fiber producers and the Austrian textile industry to promote the market launch of fibers and their products. The Fiber Institute also offers the opportunity to exchange information and experience about fibers and supports contact with educational institutions. The GFC focuses on an international exchange of experience in close coordination with the umbrella organization CIRFS in Brussels and deals with topics relevant to the future, such as fiber innovations, sustainability and the circular economy.

Applicants for the Lenzing Young Scientist Award have the opportunity to submit their work (theses, papers, etc.) in English until June 30, 2025 to the following e-mail address: YSA2025@lenzing.com. Further information can be found online at https://www.lenzing.com/young-scientist-award.

Ahead of the Annual Geneal Meeting of listed company Lenzing AG to be held on April 17, 2025, the Nomination Committee has revised the future composition of the Supervisory Board. Cord Prinzhorn, the current Supervisory Board Chairman is stepping down from the Supervisory Board with the end of his mandate, to focus on his existing and new engagements within B&C Group going forward.

Patrick Lackenbucher, Managing Director of B&C Group, has been nominated for election as a new member of the Supervisory Board, and is designated to take over the role of Chairman of the Supervisory Board on an interim basis. Mr. Lackenbucher has supported the company throughout various key strategic and financial projects over the past 15 years.

Designated Supervisory Board Chairman Patrick Lackenbucher sees the company well positioned for the future: “Both long-term core shareholders, B&C and Suzano, have a strong commitment to the enhancement of Lenzing’s competitiveness as a global market leader in sustainable cellulosic fibers. The company is addressing the continued competitive market environment with a holistic set of measures, that are already yielding positive results and will be pursued further consequently. Profitability is vital for Lenzing to sustain in the face of global competition over the long-term and to further invest in new products and markets. I am looking forward to working together collaboratively with the entire Lenzing Managing Board and Supervisory Board.”

Rohit Aggarwal, CEO of Lenzing AG comments: “Cord Prinzhorn has accompanied Lenzing with great confidence through the difficult environment over the past years and has played a key role in initiating revenue and cost initiatives, which have shown first positive effects in recent quarters leading to revenue, margin and cash flow enhancement for the company. On behalf of the entire Managing Board, I would like to thank him for the excellent collaboration, and I look forward to our future collaboration with the designated Chairman Patrick Lackenbucher, who brings many years of experience and extensive knowledge with Lenzing to the table.”

Besides Patrick Lackenbucher, Leonardo Grimaldi is proposed to be newly elected to the Supervisory Board. Mr. Grimaldi is Executive Vice President and Management Board member of Lenzing’s core shareholder Suzano S/A and will assume the Supervisory Bord mandate from Marcelo Bacci, who has left Suzano. He is an expert in the global pulp market and, among others, also acts as Supervisory Board Chairman at Brazilian port operator Portocel as well as a Supervisory Board member at Veracel Celulose S/A.

Cord Prinzhorn comments: “After four years on the Supervisory Board of Lenzing AG, my current mandate is coming to an end, and I will now concentrate on other existing and new engagements going forward. During my time as Supervisory Board Chairman we have managed to successfully complete important strategic investment projects in Brazil, Thailand and China, to reduce costs as well as financial debt, and at the same time to expand Lenzing’s position in this challenging market environment. I would like to thank not only the members of the Supervisory Board and the Managing Board but also, and above all, the employees of Lenzing, who have made a significant contribution to the success of these strategic projects.”

Cord Prinzhorn will remain Supervisory Board Chairman until the conclusion of the 81st Annual General Meeting on April 17, 2025. The election of Patrick Lackenbucher as Supervisory Board Chairman is planned for the constituting Supervisory Board meeting on the same day directly after the Annual General Meeting.

The Lenzing Group, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, acquired of a minority share in TreeToTextile AB, joining the existing shareholders H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest. The group of owners is united by the strong belief that sustainably produced fibers will have the power to change the textile industry to the better.

TreeToTextile was established as a joint venture in 2014 with the objective of developing a more sustainable process for cellulosic fiber production. The company has operated pilot lines since 2015 and invested in a demonstration plant in 2021. The next step in the company's evolution will be to scale up the production and make its fibers available on the market.

Lenzing Group has produced sustainable regenerated cellulosic fibers and dissolving wood pulp for over 85 years. “We are excited about TreeToTextile’s award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy,” says Rohit Aggarwal, CEO of the Lenzing Group.

Dr. Roxana Barbieru, CEO of TreeToTextile, adds: “Now with the additional expertise and sustainability leadership of our new shareholder Lenzing Group, our speed to market will increase significantly, to reach our ambitious goals and become an important player in the textile industry.”

• Revenue up 4.8 percent year-on-year to EUR 1.31 bn in the first half of 2024
• Performance program shows effect: EBITDA up 20.4 percent year-on-year to EUR 164.4 mn in in the first half of 2024
• Free cash flow of EUR 141.5 mn (compared with minus EUR 165.4 mn in in the first half of 2023)
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group reports a gradual improvement in its business performance in the first half of 2024. As expected, the recovery of the markets relevant to Lenzing proved to be sluggish. Although fiber sales volumes increased, fiber prices remained at a low level. The cost of raw materials and energy remained high. At the same time, logistics costs rose significantly in the reporting period.

Outlook
The IMF left its growth forecast for 2024 unchanged at 3.2 percent and raised it to 3.3 percent for 2025. Nevertheless, a number of risks for the global economy remain.

Forecasting future economic growth is rendered more difficult by smoldering global conflicts, trade disputes, and the uncertain outcome of elections, including the USA and the EU.

Consumers are holding back on unnecessary purchases in an environment of rising prices, falling real wages in some cases, and concerns about economic growth. This is hampering a revival of the consumer apparel market, which is important for Lenzing.

The currency environment is expected to remain volatile in the regions relevant to Lenzing.

In the trend-setting market for cotton, a reduction in stock levels and a stable price trend at a low level is expected for the remainder of the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first half of the year exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. The company expects that the measures will make a greater contribution to further improving earnings in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

Structurally, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is pushing both profitable growth with specialty fibers and the further expansion of its market leadership in the sustainability area.

Lenzing Group announces the appointment of Kit Ping Au-Yeung as the Executive Vice President of Commercial Textiles with immediate effect. This strategic leadership appointment highlights Lenzing’s commitment to strengthen its integral leadership roles and fuel the growth of its core textile businesses. Kit Ping succeeds Florian Heubrandner, who will take on a new role as Executive Vice President of Filament to reinforce the expansion of Lenzing’s global filament business.

In her new role, Kit Ping will be leading the expansion strategy and development of Lenzing’s textiles business, which comprises of fiber offerings under the flagship TENCEL™ and LENZING™ ECOVERO™ brands. With decades of experience working with partners across the textile value chain, Kit Ping will continue to foster the development of Lenzing’s textile business through driving innovative fiber and application solutions for customers, and ultimately bring benefits to consumers. Prior to joining Lenzing, Kit Ping held several regional and global commercial and operational leadership roles at Coats Group, as well as more recently at Amann Group. Her experience will add value to Lenzing’s core business, affirming Lenzing’s dedication to driving a positive impact across the industry ecosystem.

From 1 July 2024 onward, Florian Heubrandner will focus on driving the strategy and expansion of Lenzing’s filament business with his established expertise in the value chain. He will work alongside Lenzing’s Research and Development and Engineering teams to establish filament as a separate business with a strong focus on innovation and growth.

The Lenzing Group learned that Lenzing's main shareholder B&C Group and the Brazilian pulp producer Suzano S/A have signed a long-term partnership in connection with the majority stake in Lenzing. As part of this agreement, Suzano S/A will take over a 15 percent stake in Lenzing AG from B&C Group. Suzano is the world's largest pulp producer based in Sao Paolo and recently achieved annual sales of more than EUR 7 billion.

Lenzing's management welcomes the proposed transaction and looks forward working with another core shareholder.

The Lenzing Group once again received the Austrian sustainability award for top listed companies, the Vienna Stock Exchange VÖNIX Sustainability Award. Lenzing takes the first place in the ‘Industrials’ category. The award honours those companies that stand out on the capital market with their sustainability performance. According to the VBV (Austrian Sustainability Index), which is the sustainability benchmark of the Austrian stock market, the Lenzing Group achieved the best score in its category.

Other environmental organisations and rating agencies have also already testified to Lenzing's efforts in the area of sustainability and the transformation to a circular economy: For the third year in a row, Lenzing received a place on the annual ‘A list’ in all categories of the global non-profit environmental organisation CDP. This makes Lenzing one of only ten companies worldwide to receive a triple ‘A’ - out of over 21,000 companies assessed. Lenzing was also once again awarded platinum status in the EcoVadis CSR rating. This puts Lenzing in the top one per cent of companies rated by EcoVadis. MSCI awarded Lenzing an ‘AA’ rating for the third time in a row, placing the company among the top eight per cent of rated companies in its peer group.