Lenzing Group Leading Fiber Innovation

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Sales: EUR 2,090.4 mn

Export share: 91.1%

Staff: 7,033

Listed at Vienna Stock Exchange (ATX)

Major shareholders: B & C Privatstiftung >50%, Oberbank AG >5%

The Lenzing Group 2012

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Fibers: Core markets Asia and Europe

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Global network for our customers

1) as at 31/12/2011

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Fiber production sites

Viscose capacity: 732,000 tons/year

Purwakarta / ID 320,000 tons/year

Lenzing / AT 252,000 tons/year

Nanjing / CN 160,000 tons/year

Patalganga / IN in preparation

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Fiber production sites

TENCEL® capacity: 155,000 tons/year

Grimsby / UK 40,000 tons/year

Mobile / USA 50,000 tons/year

Heiligenkreuz / AT 65,000 tons/year

*) additional TENCEL-plant

under construction:

opening spring.2014

Lenzing / AT *) 70.000 tons/year

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Fully automated bale-stock in Lenzing

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Pulp production sites

Paskov / CZ 117,000 tons/year dissolving wood pulp 280,000 tons/year paper pulp

Lenzing / AT 290,000 tons/year dissolving wood pulp

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Growth company Lenzing

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Lenzing fibers fields of application

Textile industry

Fashion, home textiles, technical applications

Nonwovens industry

Wipes, hygiene, medical and technical applications

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Headquarter: Lenzing, Austria

Luftbild Lenzing

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Water Treatment: environmental friendly

closed loops, no polluted water

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Development of waste water emissions/Production development Lenzing site

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Development of air-emission / Production development Lenzing site

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Comparison of energy sources*

Sources: World Energy

Outlook 2012, Lenzing AG

*) incl. RVL

Global,

Lenzing Group and

Lenzing Site*

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Sustainability Green footprint: significantly more environmentally friendly than cotton

Process water Cooling water Surface water irrigation Groundwater irrigation

TENCEL®

Austria

Cotton USA

and China

263

5,730

Water consumption

Required acreage for

production of one metric

ton of fiber

Environmental

impact of production1

m3 per metric ton of fiber Hectares per metric ton and year Relative to cotton

TENCEL®

Austria

Cotton USA

and China

0.24

0.82

Lenzing Group

Avg.

Cotton USA

and China

5.7%

100%

Source: “Life Cycle Assessment of man-made Cellulose fibers”; Li Shen, Martin Patel; 2007

1) including freshwater ecotoxicity, terrestrial ecotoxicity and others

More than 50% of Lenzing’s fuel consumption sourced from renewable resource

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Innovation Industry leading R&D spend

Source: LAG

R&D expenses (2000-2012) EUR mn

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

0

0,5

1

1,5

2

2,5

3

R&D expenses R&D as % of sales

Intellectual Property

As of December 2012, Lenzing

owned approx. 1,380 patent

applications and patents in 57

countries belonging to 226 patent

families

The significant patents are filed and

maintained in Asia, the European

Union and the Americas

The majority of the patent portfolio

focuses on lyocell technology

(TENCEL®)

As of December 2012, Lenzing

owned approx. 1,500 trademark

applications and trademarks in 95

countries belonging to 123

trademark families

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Renewable Raw Material Wood

The raw material for Lenzing fibers is dissolving wood pulp from beech wood,

spruce, eucalyptus and several other types of wood

Dissolving wood pulp has specific requirements compared to paper pulp

2 % to 3 % of industrial pulp produced worldwide is used by the fiber industry

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Wood as raw material and fuel for integrated fiber production

Wood is a sustainable resource, naturally absorbent, fully biodegradable

More than 50% of wood utilized with superior recovery of energy and by-products1)

Green footprint Natural from cradle to factory gate

1) Lenzing site only

CO2 +

Ph

oto

syn

thesis

O2

Cellulose

Fiber

Textile

Biodegradability

Tree

Earth

Water

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Lenzing sustainability concept

Sustainable economic success

Growth, innovation, productivity, technology leadership, quality leadership

Responsibility for the environment

Lenzing sets environmental standards Closed loops and integration Renewable raw material wood

Responsibility for the people

Attractive jobs High safety and health standards Regional support of social, sports and cultural activities

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Wood purchase mix Lenzing site

By country in %

Beech and spruce

European timber reserves are increasing by about 30% each year1).

1) Source: FOREST EUROPE, UNECE and FAO 2011: State Europe‘s Forests 2011, Status and Trends in Sustainable Forest Management in Europe

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3 Fiber Generations Viscose, Modal, TENCEL®

*) TENCEL® is the Lenzing brand name for the generic fiber lyocell

3 development steps of man-made cellulose fibers

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Textile Fibers Product overview

Woven and knit garments

Home textiles

Homeware

Fashion Knitwear

Terry products (towels)

Underwear, lingerie, socks

Blankets, bedwear,

mattresses and sleeping bags

Shirts, blouses, pants, denim,

sportswear, outerwear,

workwear

Various technical applications

Key products Key applications

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Nonwoven Fibers Product overview

Key products Key applications

Wipes

Wound dressings, surgical swabs and

components for outer garments for

medical surgery

Tampons in the hygiene segment

Wipes

Uses in female hygiene (panty liners,

sanitary pads)

Wound dressings, surgical swabs and

components for outer garments for

medical surgery

Various technical applications

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Lenzing stands out in the textile value chain

Spinner Weaver Knitter Dyer Finisher Textile Product Retailer Consumer

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TENCEL® new cellulose fibre for

upholstery-fabrics, curtains and carpets

TENCEL®

BOTANIC LOUNGE

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Physiological attributes of TENCEL®

Raw material from nature

TENCEL® is made from wood and is 100% bio degradable. The fiber is therefore an alternative to polyamide, polyester, cotton and wool.

TENCEL® comes from nature and returns to nature.

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Manifold awarded and certified - closed loop solvent spinning process

Raw material is eucalyptus wood, sourced from sustainably managed and certified forests

FIBER PRODUCTION

WATER

SOLVENT

PULP WOOD

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Eucalyptus-wood for TENCEL-fibers

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Tried and tested technology

TENCEL® capacities:

140,000 t/a

Grimsby / GB Mobile / USA Heiligenkreuz / A

Lenzing boasts 20 years of production experience with lyocell fibers

TENCEL® pilot plant in Lenzing since 1990

Three TENCEL® production sites worldwide

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NEW TENCEL-plant in Lenzing, Austria,

opening spring, 2014

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TENCEL® – advantages 1

Moisture management

Natural air-condition

Reduced bacteria growth

Smoothness for sensitive skin

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TENCEL® – advantages 2

deep and brilliant colors

great color fastness

easy washing

better dimensional stability

no static discharge

soft hand

nice and elegant sheen

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50% TENCEL®, 50% CO 30% TENCEL®, 70% CO

Optic – Color & Luster

- More deep and brilliant colors can be achieved compared to cotton

- Brilliant colors

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No static discharges

polyester

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Static discharge- comparison

1E+04

1E+07

1E+10

1E+13

polyester 50/50 TENCEL®/PES TENCEL®

[Oh

m]

Surface resistance

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Staphylococcus Aureus

TENCEL® - no bacteria growth

Textile hygiene

TENCEL® exhibits reduce bacteria growth when sweat penetrates into textiles

Increase in bacterial counts during the Challenge Test.

A comparison of cellulose fibers and synthetics

(Prof. B. Redl et al., Medical University Innsbruck, 2004)

Growth of Staphylococcus

Aureus on fabrics

(modified Challenge test;

50% moisture at 37°C for

24h)

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Cotton Wool TENCEL®

TENCEL® - elegant sheen and soft hand

Skin sensory perception

The smooth surface of TENCEL® in combination with high moisture absorbency

gives reduced irritation potential and enhanced properties for sensitive skin.

Scanning electron micrographs of cotton, wool and TENCEL® fibers

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- Washable

compared to leather

- Higher wet tenacity, higher fiber stiffness

compared to viscose

- Not felting

compared to wool

- Shrinkage (dimension stability)

better shrinkage values compared to all cellulosic fibers

Washability

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Blends / mixtures

TENCEL is perfectly combinable with:

cotton

polyester

polyamide

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TENCEL® Fabric abrasion resistance (190gsm – no resin)

9kPa Sample loading

70:30 Tencel®/polyester

90:10 Tencel®/polyester

80:20 Tencel®/polyester

90:10 Tencel®/nylon

80:20 Tencel®/nylon

0 10 20 30 40 50 60 70 80 90 100

Dry Martindale (x1000 cycles)

100%Tencel®

Abrasion

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Advantages/characteristics

TENCEL® Sheen silky sheen/luster

Color brightness brilliant colors, higher uptake of dyestuff

Haptics (surface feel) silky, drapy, and dry touch

Abrasion blends to be preferred (in particular nylon)

Care ok, for special requirements water-, oil- and soil-repellent finishing (e.g. FC)

Washability ok, for special requirements TENCEL® A100 or TENCEL® LF

Sustainability

raw material based on raw material wood

resources sustainable wood, natural cellulose cycle

water

consumption

no artificial watering / no irrigation, low water usage during manufacturing

process

Moisture absorption high water uptake into the fiber

Antistatic natural antistatic performance, because of high moisture uptake

Hygiene reduces bacterial growth in a natural way, without any chemical additives

Skin friendliness smooth fiber surface, no skin irritation

Seating comfort no sweating, because of natural moisture management,

seating climate regulation (no sweating)

Dying & finishing easy to dye and print with dyestuffs/substances, suited for cellulosic

materials

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Comparison with other fibers

TENCEL® cotton synthetics wool Sheen/luster + - + -

Color brightness + - + -

Hand (haptics) + + + / - + / -

Abrasion - - + +

Care + / - + / - + -

Washability + / - + / - + -

Sustainability

raw material + - - +

resources + + / - - +

water consumption + - + +

Moisture absorption + + / - - +

Static charge + + - -

Hygiene + + / - - + / -

Skin friendliness + + / - - -

Seating comfort + + / - - +

Dying & finishing + + + / - -

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VISCOSE – MODAL - TENCEL

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VISCOSE – MODAL - TENCEL

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TENCEL®: Added consumer value eco-friendly and sustainable

Particularly environmentally-compatible production process

Awarded, e.g. the European Award for the Environment

and the European Eco Label

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Chill out with TENCEL®

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TENCEL® New Cellulose Fibers for

Carpets & Rugs

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TENCEL-CARPETS & RUGS

TENCEL® fibers for carpet application were developed up to 6,7dtex and 100mm

Woolen and semi worsted coarse yarn spinning is possible in blends with wool and synthetic fibers

First tufted carpet prototypes in cut and loop pile are suitable in domestic living areas

TENCEL® can provide positive effects in carpets enhanced room climate and hygiene inherently anti allergic, antistatic and moth proof sustainable, based on raw material wood produced by an ecological process

TENCEL® offers a new range of ecological friendly carpets

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Physiological attributes of TENCEL®

Webbing moth (Tineola bisselliella) larva and moth Carpet beetle (Antherenus spec.)

Samples of carpet varmints

Goodbye Moths

Moth protection without chemistry. Protein based fibers have to be protected

against varmints with chemicals like Permethrin. Moths are prevented in a

natural way

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TENCEL - Botanic Bed

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Other high-tech specialty fibers

Lenzing FR® flame-resistant

fiber

Protective wear for industry, fire fighting and

the military

Flame resistant fabrics for public transport

(airplanes, trains)

Flame resistant fabrics for furniture

Thermal insulation systems for protective

jackets

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Economically and ecologically optimized process

Raw material is beech wood sourced from naturally grown forests

WOOD

Furfural Acetic acid

PULP

Energy

Xylose Water Gypsum

FIBER PROD.

Sodium Sulfate

Recovery of process chemicals

Recovery of process chemicals

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Certificates, Eco-Labels and Awards

VÖNIX (Austrian Sustainability Index)

The European Eco-Label (European Flower)

Responsible Care

Compostable (DIN CERTO)

bioBased (BioPreferred-Programm)

Vincotte

Oeko-Tex Standard 100

European Award for the Environment

Nordic Swan

PEFC (Chain of Custody)

FSC (Chain of Custody)

Panda - WWF Austria (2003)

Sustainability Prize, Vienna Stock Exchange Award (2011)

ECO Responsibility Award for TENCEL® SUN (2011)

Energy Globe Award Upper Austria (2012)

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Corporate Social Responsibility Activities in 2011

Cooperation with Humana, development project in Limpopo/South Africa

Building of a community center for the local population

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“Full Win” strategy

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Thank you for your attention