Annual Financial Report

Lenzing Group

2021

Linear to

Circular

Content

Management Report 2021 2

General Market Environment 3

The Development of Business in the Lenzing Group 5

The Development of Business in the Division 7

Investments 12

Research and Development 13

Non-nancial statement 14

Risk Report 15

Report on the Key Elements of the Internal Control System

(Section 243a Para. 2 of the Austrian Commercial Code) 20

Shareholder structure and information on capital 22

Outlook 24

Appendix: Notes on the Financial Performance Indicators

of the Lenzing Group 25

Consolidated Financial Statements of the Group 2021 30

Content Notes 31

Consolidated Income Statement 32

Consolidated Statement of Comprehensive Income 33

Consolidated Statement of Financial Position 34

Consolidated Statement of Changes in Equity 35

Consolidated Statement of Cash Flows 37

Notes to the Consolidated Financial Statements 38

Auditor’s Report 109

Declaration of the Managing Board 113

Lenzing Group Five-Year Overview 114

Jahresabschluss AG 2021 115

Bilanz 116

Gewinn- und Verlustrechnung 118

Anhang zum Jahresabschluss 120

Erläuterungen zur Bilanz 123

Erläuterungen zur Gewinn- und Verlustrechnung 130

Sonstige Angaben 133

Entwicklung des Anlagevermögens 142

Entwicklung der Zuschüsse der öentlichen Hand 144

Bestätigungsvermerk 145

Erklärung des Vorstandes 148

Imprint 149

1 Annual Financial Report 2021 Lenzing Group

2021

Management

Report

CHAPTER

Content

General Market Environment 3

The Development of Business in the Lenzing

Group 5

The Development of Business in the Division 7

Investments 12

Research and Development 13

Non-nancial statement 14

Risk Report 15

Report on the Key Elements of the Internal

Control System (Section 243a Para. 2

of the Austrian Commercial Code) 20

Shareholder structure and information

on capital 22

Outlook 24

Appendix:

Notes on the Financial Performance

Indicators of the Lenzing Group 25

2 Annual Financial Report 2021 Lenzing Group

28 Annual Report 2021 Lenzing Group

Global economy

In 2021, the global economy recovered from the previous year’s re-

cession, despite the ongoing COVID-19 pandemic. The Interna-

tional Monetary Fund estimates that growth amounted to 5.9 per-

cent in 2021 (-3.1 % in 2020). The economy in industrialized nations

is expected to have expanded by 5 percent (2020: -4.5 %). At

5.6 percent (2020: -3.4 %), growth in the USA was higher than that

of the Eurozone at 5.2 percent (2020: -6.4 %). As in the previous

year, China recorded above-average growth of 8.1 percent (2020:

2.3 %).

Despite the economic recovery, 2021 was characterized by numer-

ous economic challenges: supply failed to keep pace with demand

in many areas of the global economy. In addition to further reasons,

including structural reasons, this led to signicant price increases,

particularly in the energy area, and to problems in global supply

chains.

For 2022, the IMF forecasts growth of 4.4 percent. However, a

continuation of the economic recovery remains exposed to risks,

especially the further course of the pandemic and its implications

for individual economic sectors.

Global ber market

Global demand recovers to pre-crisis levels;

ber production continues to rise

Following the pandemic-related shock in the previous year, the de-

mand situation in the textile and apparel industry largely recovered

in 2021. Retail sales of apparel returned to pre-crisis levels world-

wide. However, major regional dierences were evident: in the

USA, sales increased by up to 50 percent year-on-year, to stand

some 10 to 15 percent above pre-crisis levels. Sales in China were

stable, although only just above their 2019 level, while EU sales

were almost 20 percent below their 2019 level. Sales in Japan were

down by as much as 20 to 25 percent. These dierences, some of

which are very signicant, are particularly due to local infection

patterns and the government measures taken.

The extensive recovery in the textile and apparel industry and con-

tinuing high demand for medical and hygiene products, which also

led to strong demand for nonwoven bers in 2021, fed through to

a signicant recovery in the world ber market. Initial estimates

suggest that production levels on the world ber market are likely

to have risen by 2 to 3 percent year-on-year to 116 mn tonnes.

Source: IMF, World Economic Outlook, January 2022

Cotton production decreased by 7 percent to 24.3 mn tonnes in

2020/2021, according to preliminary estimates. This is mainly due

to the eect of comparatively high crop yields in the 2019/2020

pre-season. Demand rose by 13 percent to 25.7 mn tonnes. Cotton

stocks subsequently reduced, but still remained above 2019 levels.

Wood-based cellulosic ber production in 2021 increased by

8 percent to set a new high of 7.3 mn tonnes, supported by strong

demand and capacity expansions. The production of modal and

lyocell bers rose at an above-average rate.

Production volumes of synthetic polymer bers grew by almost

6 percent to 78.5 mn tonnes, according to initial estimates. Polyes-

ter bers reported the fastest growth in 2021. Polyamide, polypro-

pylene and acrylic bers were at lower levels, due mainly to price

disadvantages compared to polyester, and diculties in raw mate-

rial supplies.

All production-related gures in this section were updated from the initial estimates

published in the Annual Report 2020.

Source: ICAC, IWF, Cotton Outlook, CCFG, FAO

General Market Environment

3 Annual Financial Report 2021 Lenzing Group

29 Annual Report 2021 Lenzing Group

Price trends further aected by COVID-19

The ongoing COVID-19 pandemic continued to aect the general

price level for staple bers in 2021. Prices for a number of ber

types recovered, in some cases signicantly, as demand returned.

The cotton price amounted to 127.2 US cents per pound as of De-

cember 31, 2021, corresponding to an increase by 50 percent com-

pared with the beginning of the year. On average, the cotton price

was 41 percent higher than in the previous year. The rise in cotton

prices is only partly attributable to fundamental factors. It is primar-

ily driven by dynamics on international commodity markets and

problems in the global supply chain.

Prices for standard viscose hardly changed over the year. At RMB

12,000 per tonne, the year-end price was only 4 percent higher

than that at the previous year-end. However, price trends were

subject to signicant uctuations over the course of the reporting

year. In the rst quarter, prices recorded a signicant recovery from

the COVID-19 crisis to peak at RMB 15,600 per tonne as of the end

of February. As a consequence, prices came under pressure in an

environment of subdued demand and rising stocks. In September,

the Chinese government imposed measures to reduce energy con-

sumption in industry. This also aected the textile value chain, such

as spinning and weaving mills, which in turn had a negative impact

on ber demand and viscose price trends. A brief recovery phase

was followed by further decreases in prices from the end of No-

vember with the emergence of the omicron variant. Average 2021

prices for standard viscose stood 45 percent higher than the pre-

vious year’s average.

Prices for wood-based specialty bers such as those of the

TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands were

much more stable than those for standard bers.

The Chinese import price for ber pulp, the key raw material for the

production of wood-based cellulosic bers, rose by 24 percent to

USD 905 per tonne during the year, outpacing the increase for pa-

per pulp. In the meantime, the price had even risen to USD 1,106

per tonne in April. Supporting factors for the sustained high price

level included a supply shortage due to supply bottlenecks and lo-

gistical problems, as well as higher demand at the end of the year.

At USD 991 per tonne, the average price for the year was 36 per-

cent higher than in the previous year.

The polyester price in 2021 was aected by signicant price uc-

tuations for crude oil and intermediates, as well as a recovery in

demand. The price of polyester staple ber in China rose by 19 per-

cent year-on-year to RMB 7,020 per tonne at the end of the year.

The average price for the year was also RMB 7,020 per tonne,

20 percent higher than the previous year’s average.

Source: ICAC, CIRFS, TFY, Lenzing estimates

Source: CCFG, CCA

4 Annual Financial Report 2021 Lenzing Group

29 Annual Report 2021 Lenzing Group

Thanks to its strategic focus on specialty bers and a largely posi-

tive market environment, the Lenzing Group recorded a signicant

year-on-year improvement in revenue and earnings trends in 2021.

Growing optimism in the textile and apparel industry as a conse-

quence of the progress made with vaccinations and the continuing

recovery in the retail sector ensured a signicant rise in demand

and prices on the global ber market, particularly at the beginning

of the year under review.

Revenue rose by 34.4 percent to EUR 2.19 bn in 2021, reecting

both higher sales volumes as well as higher ber prices. The focus

on wood-based specialty bers, such as those of the TENCEL™,

LENZING™ ECOVERO™ and VEOCEL™ brands, also exerted a

positive impact on revenue growth. These positive price and mix

eects more than oset negative currency eects.

The earnings trend mainly reects Lenzing’s position within the

current market environment. A continued focus on measures to im-

prove structural earnings in all regions reinforced this positive ef-

fect. Signicant increases in energy, raw material and logistics

costs were recorded throughout the reporting year. Earnings be-

fore interest, tax, depreciation and amortization (EBITDA) almost

doubled year-on-year to EUR 362.9 mn in 2021 (compared with

EUR 192.3 mn in 2020). The EBITDA margin rose from 11.8 percent

to 16.5 percent. Operating prot (EBIT) amounted to

EUR 200.6 mn (compared to EUR 33.9 mn in 2020). The EBIT mar-

gin rose accordingly from 2.1 percent to 9.1 percent. The nancial

result of EUR minus 17.7 mn includes the full write-o of the interest

in Hygiene Austria LP GmbH as well as a loan to this same company.

Earnings before tax (EBT) increased to EUR 182.9 mn compared

with EUR 22.3 mn in 2020). Net prot for the year amounted to

EUR 127.7 mn compared with EUR minus 10.6 mn in 2020) and

earnings per share stood at EUR 4.16 (compared with EUR 0.24 in

2020).

The income tax expense of EUR 55.2 mn (compared with

EUR 32.8 mn in 2020) follows the earnings trend and reects cur-

rency eects and the valuation allowance applied to individual

Group companies’ tax assets.

Details on revenue and earnings trends in the year under review are

as follows:

Condensed consolidated income statement

EUR mn

Change

2021 2020 Absolute Relative

Revenue    

Cost of sales ( ) ( ) ( )  

Gross prot    

Other operating

income

       

Selling expenses ( ) ( ) ( )  

Administrative

expenses

( ) ( ) ( )  

Research and

development

expenses

( ) ( ) ( )  

Other operating

expenses ( ) ( )   ( )

EBIT    

Financial result ( ) ( ) ( )  

EBT    

Income tax expense ( ) ( ) ( )  

Net prot/loss for

the year  ()  n/a

1) Since the beginning of the 2021 nancial year, the Lenzing Group has reported its

consolidated income statement by applying the cost of sales method. The previous

presentation applied the nature of expense method. The complete consolidated in-

come statement is presented in the consolidated nancial statements.

Higher level of investment activities

Gross cash ow almost tripled to EUR 372 mn in 2021 (compared

to EUR 126.8 mn in 2020), which mainly reects the earnings trend.

Cash ow from operating activities amounted to EUR 394 mn

(compared with EUR 48.9 mn in 2020). Free cash ow stood at

EUR minus 445.5 mn (2020: EUR minus 614.8 mn), which was es-

pecially due to investment activities related to the projects in Thai-

land and Brazil. Capital expenditure on intangible assets, property,

plant and equipment, and on biological assets increased by

26.3 percent to EUR 844.3 mn in the reporting period, approxi-

mately half of which was nanced from cash ow from operating

activities. The sharp increase in investment volumes is primarily due

to the implementation of the two key projects.

The liquidity position rose by 4 percent year-on-year to stand at

EUR 1.11 bn as of the end of 2021.

Solid balance sheet structure

The Lenzing Group’s total assets grew by 27.9 percent compared

to December 31, 2020, and amounted to EUR 5.3 bn as of the end

The Development of Business in the Lenzing Group

5 Annual Financial Report 2021 Lenzing Group

30 Annual Report 2021 Lenzing Group

of December 2021. The most signicant changes relate to the in-

crease in property, plant and equipment due to the higher level of

investing activities.

Adjusted equity rose by 10.9 percent to EUR 2.12 bn as of the end

of 2021, primarily due to the operating prot trend in 2021. The ad-

justed equity ratio decreased from 45.8 percent to 39.7 percent,

due particularly to the higher level of total assets. Net nancial debt

amounted to EUR 977 mn as of the end of the reporting year (com-

pared to EUR 471.4 mn as of December 31, 2020). This increase re-

ects the nancing of the two key projects in Thailand and Brazil.

Net gearing rose to 46.2 percent as of the reporting date (com-

pared with 24.7 percent as of December 31, 2020). Trading working

capital increased by 0.9 percent to EUR 387.4 mn.

6 Annual Financial Report 2021 Lenzing Group

31 Annual Report 2021 Lenzing Group

In order to prepare the Lenzing Group for the challenges and op-

portunities deriving from the investment projects and the changed

market environment, the Managing Board presented a new organ-

izational structure that is to support the sCore TEN strategy objec-

tives with a focus on protable, organic growth in specialty bers,

and further enhance eciency and transparency. As a conse-

quence, the management of the business was adjusted and divided

into the two new divisions of “Fibers” and “Pulp”.

The Lenzing Group’s investment activities in 2021 continued to fo-

cus on the expansion of the Group’s internal ber pulp production,

raising the share of specialty bers, and implementing the climate

targets in line with the sCore TEN corporate strategy.

In September, the Lenzing Supervisory Board reached an amicable

agreement with long-serving CEO Stefan Doboczky on the early

termination of his contract. Mr. Doboczky informed the Supervi-

sory Board that he would not be available for a further extension of

his contract from 2022. The Lenzing Supervisory Board noted this

with great regret, and in agreement with Mr. Doboczky terminated

his contract as of the end of the third quarter.

Cord Prinzhorn was appointed CEO on an interim basis. Mr. Prin-

zhorn has been a member of the Lenzing Supervisory Board since

the Annual General Meeting in April of this year. As of November

4, 2021, he relinquished this position until further notice, and as-

sumed the CEO role.

Division Fiber

The Fibers Division comprises all business activities of the Lenzing

Group with the dierent generations of wood-based cellulosic -

bers.

Specialty bers are Lenzing’s great strength. The objective is to

generate more than 75 percent of ber revenues from business

with wood-based specialty bers such as lyocell and modal bers

by 2024. The focus of this strategic target was the start-up of the

new state-of-the-art lyocell plant in Thailand with a nominal capac-

ity of 100,000 tonnes. Production starts in the rst quarter of 2022.

Moreover, Lenzing is investing more than EUR 200 mn in produc-

tion sites in China and Indonesia to convert existing capacities for

standard viscose into capacities for environmentally compatible

specialty bers. In Nanjing, Lenzing is working on converting a line

to TENCEL™ modal bers. The portfolio of the Chinese ber plant

will thereby consist entirely of specialty bers by the end of 2022.

As part of the investment in Purwakarta, Lenzing will bring its entire

viscose production up to EU Ecolabel standards. The site will

thereby become a pure specialty viscose supplier as of 2023.

Note 3 to the condensed consolidated interim nancial statements as of June 30,

2021

In addition to the new lyocell plant in Thailand, which is designed

to be carbon neutral, investments at existing sites are also in line

with Lenzing’s targets to reduce carbon dioxide emissions per

tonne of product by 50 percent by 2030, and to be climate neutral

by 2050.

With the repositioning of its product brands, the Lenzing Group has

been sending a strong message to consumers since 2018. With

TENCEL™ und LENZING™ ECOVERO™ as umbrella brands for all

specialty products in the textile segment, VEOCEL™ as the um-

brella brand for all specialty nonwoven products, and LENZING™

for all industrial applications, the company showcases its strengths

in a targeted manner. Lenzing continued to enhance the visibility of

its brands in 2021 through targeted communication measures.

The revenue of the Fibers Division reached a level of EUR 1.9 bn in

2021, 69.4 percent of which was attributable to textile bers and

30.6 percent to bers for nonwovens and special applications. Fi-

ber sales volume increased by 15.5 percent in 2021 to approxi-

mately 909,000 tonnes (2020: approximately 787,000 tonnes). The

share of specialty bers in ber revenues decreased to 72.3 per-

cent (2020: 76.2 %) as a consequence of the recovery in standard

viscose prices. The division’s earnings (EBITDA) amounted to

EUR 214 mn, while operating earnings (EBIT) stood at

EUR 107.4 mn.

Textile bers

The market for textile bers performed very well in 2021, although

signicant dierences in demand for standard viscose and spe-

cialty bers were discernible in some cases.

Prices for standard viscose were very volatile. High energy, raw ma-

terial and logistics costs coupled with poor availability of contain-

ers further aected the economic attractiveness of standard vis-

cose bers.

In contrast, the wood-based specialty bers business recorded

stable and high demand in all major producing textile markets such

as China, India, Pakistan, Bangladesh and Turkey, as well as for all

Lenzing product groups (TENCEL™ lyocell and modal bers,

LENZING™ ECOVERO™ bers), driven by growing demand for

high-quality and sustainably produced bers from retailers and

fashion brands.

Lenzing also presented a variety of new ber innovations in 2021,

which help make its partners’ product ranges more sustainable.

In February, Lenzing launched TENCEL™ brand modal bers with

Indigo Color technology. The single-stage spun-dyeing process

used here enables indigo pigments to be incorporated directly into

the ber. Compared to conventional indigo dyeing processes, this

ensures better color fastness with signicantly lower resource con-

The Development of Business in the Division

7 Annual Financial Report 2021 Lenzing Group

32 Annual Report 2021 Lenzing Group

sumption. The product has been awarded the EU Ecolabel. This la-

bel is awarded to products that meet high environmental standards

throughout their life cycle.

To meet demand for more recycling solutions in the textile and ap-

parel industry, in September Lenzing presented carbon-neutral

TENCEL™ bers enhanced by REFIBRA™ recycling technology.

The carbon-free lyocell and modal bers of the TENCEL™ brand

generated signicant growth in interest among customers and

partners along the value chain in 2021. These bers represent an

important step taken by Lenzing and its partners on their joint path

to carbon neutrality.

In October, Lenzing expanded its product range to include matt

TENCEL™ lyocell bers. These provide a matt appearance to gar-

ments, in contrast to the typical sheen of TENCEL™ lyocell bers.

Feedback from fashion brands and retailers was very positive, lead-

ing to good initial sales gures.

In addition to environmental protection, transparency also repre-

sents a great challenge for the textile industry. To address the issue,

Lenzing expanded its ber identication system to include

TENCEL™ lyocell and modal bers in 2021. With this step, the

company once again underlined its commitment to a transparent

textile value chain.

In addition, Lenzing oers an innovative solution based on block-

chain technology in collaboration with TextileGenesis™ to ensure

traceability along the textile value chain. As of December 31, 2021,

more than 600 dierent partner companies have been successfully

integrated into the platform. Thanks to the innovative Fibercoin™

technology of the TextileGenesis™ platform, Lenzing is able to is-

sue digital tokens in direct proportion to physical ber deliveries.

These track deliveries along the value chain and act as a kind of

digital twin. The feedback from leading fashion brands and retailers

is positive.

Lenzing also made very good progress in the development of the

lyocell lament business under the TENCEL™ Luxe brand.

TENCEL™ Luxe laments have been registered with The Vegan

Society™ since 2021. The independent certicate proves that the

wood-based laments are manufactured entirely without animal

testing or animal components. In 2021, more fabrics were devel-

oped as sustainable and vegan alternatives to silk fabrics for outer-

wear, footwear, activewear and traditional Indian clothing. Leading

fashion brands and designers have already incorporated some of

these developments into their collections. Lenzing also optimized

the operation of its second pilot plant in 2021 and received ap-

proval for a project to eliminate capacity bottlenecks in December

as a consequence of the positive market trend.

In addition, Lenzing further expanded the awareness and visibility

of its TENCEL™ and LENZING™ ECOVERO™ brands in 2021. In

the rst half of the year, Lenzing reached more than 400 million

consumers worldwide with brand activation at Earth Day (#check-

whatsgood), the Oscars (with Red Carpet Green Dress and TEN-

CEL™ Luxe) and #FeelsSoRight. New co-branding initiatives in

collaboration with partners such as Zara, PULL&BEAR, Zalando,

Massimo Dutti, Camper, H&M and Esprit have greatly increased

visibility in the market. The TENCEL™ eShop was opened in Feb-

ruary 2021. It now includes ten brands, including Levi’s

, H&M, Es-

prit, Jack & Jones, J.Crew, Mara Homan and West Elm. It is the

world’s rst e-commerce portal from a sustainable ber producer.

It was featured in Vogue magazine and has reached over 20 million

people to date. The portal now has more than 100,000 page views

from an international audience and is continuing to grow. To further

raise awareness for sustainable fashion, Lenzing implemented the

#MakeItFeelRight campaign from June to December. By the end

of the year under review, 510 million consumers in nine countries

had been reached.

Nonwoven bers

The nonwoven bers business continued to comprise an important

strategic pillar for Lenzing in the second year of the pandemic.

Higher demand for hygiene products as a consequence of COVID-

19 also had a positive impact on demand for nonwoven bers in the

rst half of 2021. The high level of stocks worldwide weakened this

eect somewhat in the second half of the year.

Lenzing’s nonwoven bers business also continued to benet from

the long-term global trend toward more sustainable, biodegrada-

ble materials, supported by new regulations in the markets. The

company welcomes the issuance of the guidelines for the imple-

mentation of the Single-Use Plastics Directive (EU) 2019/904,

which came into force on June 5, 2019. In this directive, the EU

Commission species which products fall within its scope, thereby

providing clarity in the EU member states’ joint ght against plastic

waste pollution. Lenzing’s wood-based and biodegradable nonwo-

ven bers, such as those under the VEOCEL™ brand, oer a sus-

tainable and innovative solution to this man-made problem. The

Single-Use Plastics Directive also provides for uniform labeling re-

quirements for certain products on either the packaging or on the

product itself from July 3, 2021. These include feminine hygiene

products and wet wipes for personal and household care that con-

tain plastics. With its VEOCEL™ brand, Lenzing provides consum-

ers with clear guidance for their purchasing decisions: products

bearing the VEOCEL™ brand logo on their packaging follow strin-

gent certication criteria. This assures consumers that the bers of

the labeled product are biodegradable and contain 100 percent

cellulosic material.

With the #ItsInOurHands environmental initiative, the VEOCEL™

brand is specically raising consumer awareness of issues such as

sustainable materials, as well as climate and environmental protec-

tion. In 2021, the initiative achieved a global reach of more than

70 million, again also increasing the visibility of the VEOCEL™

brand. With the “It’s In Our Hands” school project, the brand is also

involved in the “Citizen Science” area, which aims to raise aware-

ness among students aged 10 to 16 concerning the importance of

sustainable materials in everyday products. The launch took place

in the fall of 2021 in the USA, Germany and Austria.

With the “Nature re-imagined” campaign, Lenzing placed an even

greater focus on its particularly environmentally compatible lyocell

process in its advertising activities in 2021. The process developed

by Lenzing enables more than 99 percent of the solvent to be re-

covered in a closed loop and to be always fed back into the pro-

duction process. With VEOCEL™ brand lyocell bers, Lenzing

thereby oers customers in the nonwovens sector a sustainable -

ber that also features special properties in terms of quality.

As part of the “Climate Care” campaign, Lenzing launched the rst

carbon-neutral cellulosic bers on the global nonwovens market in

8 Annual Financial Report 2021 Lenzing Group

33 Annual Report 2021 Lenzing Group

the second quarter. The launch of bers certied as CarbonNeu-

tral

products in accordance with the CarbonNeutral Protocol

guidelines represents a further milestone on the joint journey of

Lenzing and its partners towards carbon dioxide neutrality. This

new oering in the VEOCEL™ brand portfolio is the result of tar-

geted measures to reduce specic product emissions. By utilizing

renewable energies, low carbon dioxide raw materials and energy

sources, ecient production methods, and carbon dioxide oset-

ting via veried climate protection projects, it is possible for the

rst time to oer bers for nonwoven bers with a carbon-neutral

footprint.

The hydrophobic LENZING™ Lyocell Dry ber is a further product

innovation from the year under review. This combines the benets

of standard lyocell ber with the ability to repel moisture and liquid.

Unlike conventional cellulosic bers, water cannot penetrate the -

bers, with the water instead forming beads on the surface. The ber

thereby makes it possible to tap further application areas that were

previously largely dependent on petroleum-based bers.

With a focus on information and education as well as innovative

new products, the company succeeded in expanding its global

brand presence and network of co-branding partners in 2021: in

the USA, the VEOCEL™ brand cooperates with well-known brands

such as Coterie and Neutrogena, and in China with Kotex, a brand

of US hygiene products manufacturer Kimberly-Clark. In Turkey,

the VEOCEL™ brand joined the multimedia campaign of Turkish

hygiene products manufacturer DeepFresh.

Co-products of ber production

The Lenzing Group produces LENZING™ sodium sulfate as a co-

product at all locations where viscose or modal bers are manu-

factured. This is used in the detergent and glass industries and for

the production of food and animal feed. Sales volumes at the Len-

zing site increased by 12 percent year-on-year in 2021.

Since 2019, Lenzing has produced and marketed LENZING™ cal-

cium sulfate, a further co-product reporting a constant trend level.

Sales volumes already amounted to 16,000 tonnes in 2021.

Division Pulp

The Pulp Division comprises all Lenzing Group business activities

from wood procurement through to the production of ber pulp

and biorenery products. In addition to the activities in Paskov and

Lenzing, the division focused on the implementation of the major

project in Brazil in 2021. The construction of the ber pulp mill in

Minas Gerais continues to proceed according to plan, despite the

challenges caused by COVID-19. Commissioning is still planned for

the rst half of 2022. In addition to securing internal supplies, the

new pulp mill also enables Lenzing to achieve an important mile-

stone in its climate neutrality strategy. It will be one of the world’s

most productive and energy-ecient mills and feed more than

50 percent of the electricity generated into the public grid as re-

newable energy. In 2019, Lenzing made a commitment to reducing

its greenhouse gas emissions per tonne of product by 50 percent

License code: FSC-C041246 and PEFC/06-33-92 (Lenzing), and FSC-C118737 and

PEFC/08-31-0025 (Paskov)

by 2030 compared with a 2017 baseline. The aim is to be climate-

neutral by 2050.

In order to further boost closed loop recycling, Lenzing signed a

partnership agreement with Swedish pulp producer Södra in June.

The cooperation involves the transfer of knowledge between the

two companies, which have been proactively driving closed loop

recycling for many years, as well as a joint new process develop-

ment for the recycling of textile waste. A capacity expansion for

pulp from textile waste is also planned. The aim is to be able to

recycle approximately 25,000 tonnes of used textiles per year by

2025. Lenzing has proactively developed and promoted innova-

tions in recycling for several years (such as the REFIBRA™ and Eco

Cycle technologies) in order to provide solutions to the global tex-

tile waste problem.

The Pulp Division’s revenue reached a level of EUR 759 mn in 2021.

Divisional earnings (EBITDA) amounted to EUR 210.1 mn, and oper-

ating earnings (EBIT) stood at EUR 164.2 mn.

Wood

Developments on global commodity markets also had a signicant

eect on the wood market in 2021. A labor shortage in the value

chain, increased demand for rewood and biomass as a conse-

quence of high energy prices, as well as a high level of production

in almost the entire wood processing industry have tightened the

availability of various types of wood and prompted an upward price

dynamic.

The Lenzing Group’s current procurement strategy entailing long-

term master agreements achieved a good stabilizing eect on vol-

umes and prices. Lenzing was consequently able to ensure a good

supply situation with moderate price increases at its two pulp

plants at the sites in Lenzing (Austria) and Paskov (Czech Republic)

during the reporting period.

In 2021, an audit in accordance with the Forest Stewardship Coun-

cil® (FSC®) and Programme for the Endorsement of Forest Certi-

cation™ (PEFC™) forest certication systems conrmed again for

both sites that, in addition to stringent forestry laws in the supplier

countries, all wood used derives from PEFC™ and FSC

certied

or controlled sources.

Biorenery

Pulp

The Pulp Division supplies the Lenzing Group’s ber production

sites with high-quality ber pulp, and operates its own ber pulp

plants at the Lenzing and Paskov sites. This covers around two-

thirds of Lenzing’s pulp requirements. The remainder is largely pur-

chased on the basis of long-term agreements. A total of approxi-

mately 600,000 tonnes of ber pulp was produced at Lenzing’s

two pulp plants in 2021.

The price of hardwood-based ber pulp in China increased by

36 percent in 2021 to USD 991 per tonne as of December 31, re-

ecting high demand along the entire value chain, especially at the

start of the year.

9 Annual Financial Report 2021 Lenzing Group

34 Annual Report 2021 Lenzing Group

Increasing internal ber pulp production forms a key element in the

implementation of the sCore TEN strategy. Construction of the

pulp mill in Brazil as part of the joint venture with Dexco (formerly

Duratex) continued to run to schedule in 2021, and its commission-

ing is planned for the rst half of 2022. The expected construction

costs amount to USD 1.38 bn. The project is predominantly -

nanced through equity and long-term debt.

To provide the biomass, the joint venture secured over 44,000 hec-

tares of FSC®-certied commercial forest, and leased additional

land, in order to have approximately 70,000 hectares of FSC

-cer-

tied land when completed.

These plantations operate in full ac-

cordance with the Lenzing Group’s guidelines and high standards

for the sourcing of wood and pulp.

Biorenery products

In addition to pulp, the Lenzing Group’s bioreneries also produce

and market biorenery products so that further components of the

valuable raw material wood are utilized. Renowned customers

from the food, animal feed, pharmaceutical and chemical indus-

tries increasingly rely on biobased products from Lenzing.

Sales volumes of the biorenery products LENZING™ Acetic Acid

Biobased and LENZING™ Furfural Biobased rose on average by

3 percent and 14 percent, respectively. The price increases on the

cost side were successfully passed on to sales products.

The biorenery products business area also places a strong focus

on sustainability. A lifecycle analysis performed by the research in-

stitute Quantis conrmed that the carbon footprint of LENZING™

Acetic Acid Biobased is more than 85 percent less than that of

comparable products based on fossil resources. Customers in-

creasingly perceive this product advantage as a benet.

Divisional supplies of energy and

other raw materials

In the Fibers and Pulp divisions, energy and other raw materials are

signicant factors inuencing the Lenzing Group’s nancial posi-

tion and performance.

Energy

Lenzing’s biorenery concept at the Lenzing and Paskov locations

makes the Group a pioneer in highly self-sucient pulp and ber

production. For its other locations, Lenzing is developing energy

eciency enhancement programs.

After historically low prices in the previous year, the 2021 nancial

year was characterized by extreme price increases for all energy

commodities, mainly due to a tight supply situation on the Euro-

pean natural gas market caused by delay in the commissioning of

the “Nord Stream 2” pipeline project. Higher demand due to the

long winter of 2020/2021 and the good economic situation exac-

erbated the situation.

Prices for gas and electricity in Europe were well above previous

record levels. Natural gas prices were up by 325 percent in 2021,

and electricity prices increased by 205 percent. Coal prices rose

FSC license code: FSC-C006042

by 118 percent in 2021 due to the strong economic recovery cou-

pled with a reduction in supply, primarily in Asia.

Prices for carbon credits increased by 108 percent in the year under

review, due not only to an articial shortage of credits issued but

also to higher demand for solid fossil fuels such as coal as a conse-

quence of the sharp rise in gas prices.

Oil prices, by contrast, recorded a “moderate” increase of 54 per-

cent during the year under review, due to the dampening e ect of

global travel restrictions on demand.

The Lenzing Group’s procurement strategy for the main cost com-

ponents, electricity and natural gas, is based on procurement via

the spot market. Price increases on global energy markets conse-

quently also led to a signicant rise in the company’s energy costs

in the reporting year.

The Lenzing Group’s energy production facilities operated on a

largely normal basis in 2021. At the Lenzing site, the construction

of the largest open-space photovoltaic plant in the province of Up-

per Austria is planned on an area of 55,000 m². The project will be

implemented in 2022, subject to nal regulatory approvals.

In Paskov, a voltage dip in the European power grid led to the pro-

longed outage of a turbine. As a consequence, less surplus energy

was fed into the public power grid in 2021 than in the previous year.

The power plants in Purwakarta were operated with high availabil-

ity levels and were further optimized. As the coal price in Asia was

still very high in historical terms, energy costs remained high in 2021.

The price of coal rose by 45.3 percent year-on-year. The grid elec-

tricity price recorded a small increase in comparison and was

4.1 percent higher in 2021 than in 2020.

The rising coal price also a ected steam prices at the Nanjing site.

On average, the steam price in 2021 was 23.1 percent higher than

in 2020. The grid electricity price stood 3.8 percent higher than in

the previous year. The switchover in energy production from coal

to natural gas, which is intended to reduce carbon emissions, was

progressed further in 2021.

Other raw materials

The shock to global commodity markets triggered by COVID-19,

especially in the fourth quarter, led to tighter supplies and signi-

cant price increases in 2021.

Lenzing is working on a long-term concept to enhance supply se-

curity. The successful completion and commissioning of the air pu-

rication and sulfur recycling plant at the Lenzing site in 2021 rep-

resented an important step along this path. Since the start of con-

struction in 2019, Lenzing has invested approximately EUR 40 mn

in the project, which will further reduce carbon emissions and in-

crease self-suciency in relation to critical process raw materials.

Caustic soda

Caustic soda is used in the production of pulp and is also an im-

portant primary product for the production of viscose and modal

bers. It arises as a co-product from chlorine production. Counter

10 Annual Financial Report 2021 Lenzing Group

35 Annual Report 2021 Lenzing Group

to the general price trend on raw material markets, prices for caus-

tic soda decreased in the rst half of 2021 due to oversupply in the

market. Lower demand as a consequence of COVID-19 was oset

by comparatively high production volumes due to generally good

demand for chlorine. The market turned around in the second half

of the year, and demand has increased signicantly while supply

has tightened. This situation led to a signicant price increase

worldwide.

Sulfur

Sulfur is an important starting material for the production of carbon

disulde and sulfuric acid. In turn, both raw materials are used in

the viscose process. Sulfur prices also recorded a signicant price

increase in 2021, mainly due to higher demand and lower produc-

tion volumes as a consequence of COVID-19 – with negative ef-

fects on availability in the meantime.

Others

The “Others” area mainly comprises central headquarters functions

and overarching activities as well as R&D activities and the activi-

ties of BZL-Bildungszentrum Lenzing GmbH (training and person-

nel development). Revenue in the “Others” area reached

EUR 6.1 mn in 2021. The result (EBITDA) amounted to EUR minus

58.4 mn, while the operating result (EBIT) stood at EUR minus

68.2 mn.

Hygiene Austria LP GmbH

After the allegations surrounding Hygiene Austria LP GmbH be-

came known in March 2021, Lenzing worked intensively to address

them. Accompanied by a corresponding set of specications for

the continuation of business operations on a rm footing, Lenzing

also transferred its interest to Palmers Textil AG. In order to ensure

the continuation of the company as a going concern in accordance

with the nature of its formation, Lenzing initially waived a corre-

sponding purchase price (see also press release of Lenzing AG of

04/02/2021). The entirety of this interest has been written o in the

meantime.

11 Annual Financial Report 2021 Lenzing Group

36 Annual Report 2021 Lenzing Group

The Lenzing Group’s investing activities in 2021 continued to focus

on increasing its internal ber pulp production, raising the share of

specialty bers, and implementing the climate targets in line with

the sCore TEN corporate strategy.

Capital expenditure on intangible assets, property, plant and

equipment and biological assets increased by 26.3 percent to

EUR 844.3 mn in the reporting year. The sharp rise in the volume of

capital expenditure is particularly due to the implementation of key

projects in Brazil and Thailand.

In Brazil, Lenzing and its partner Dexco (formerly Duratex) are con-

structing the largest pulp mill of its kind with a nominal capacity of

500,000 tonnes per year. Dexco acquired a 49 percent interest in

the LD Celulose joint venture, with Lenzing retaining 51 percent.

Construction work also progressed according to plan in the year

under review, despite the challenges due to COVID-19. For this rea-

son, the commissioning of the mill is still planned for the rst half of

2022. The expected construction costs for this largest project in

Lenzing’s corporate history amount to USD 1.38 bn. The nancing

is mainly provided by long-term debt funding. IFC, a member of

the World Bank Group, and IDB Invest, a member of the IDB Group,

are supporting the investment program. Export credit agency Finn-

vera and seven commercial banks also participated in the approxi-

mately USD 1.15 bn nancing package.

In Thailand, Lenzing worked at full speed in 2021 to complete the

new state-of-the-art lyocell plant with a nominal capacity of

100,000 tonnes per year. Production started in the rst quarter of

2022. The investment volume amounts to around EUR 400 mn.

In addition, Lenzing is investing more than EUR 200 mn in produc-

tion sites in China and Indonesia to convert existing capacities for

standard viscose into capacities for environmentally compatible

specialty bers. In Nanjing, Lenzing is working on converting a line

to TENCEL™ modal bers. The portfolio of the Chinese ber plant

will thereby consist entirely of specialty bers by the end of 2022.

As part of the investment in Purwakarta, Lenzing will bring its entire

viscose production up to EU Ecolabel standards. The site will

thereby become a pure specialty viscose supplier as of 2023.

In addition to the new lyocell plant in Thailand, which is designed

to be carbon neutral, investments at existing sites are also in line

with Lenzing’s targets to reduce carbon dioxide emissions per

tonne of product by 50 percent by 2030 and to be climate neutral

by 2050.

In 2021, Lenzing also announced plans for the largest open-space

photovoltaic plant in the state of Upper Austria, covering an area of

55,000 m² at the Lenzing site. In Grimsby (UK), the company is in-

vesting GBP 20 mn (equivalent to EUR 23.3 mn) in the construction

of a new, state-of-the-art wastewater treatment plant, thereby im-

plementing a planned measure to reduce wastewater emissions by

2022.

The year 2021 also saw the successful completion and commis-

sioning of the air purication and sulfur reprocessing plant at the

Lenzing site. Thanks to the new plant, carbon dioxide emissions will

be further reduced and self-suciency in critical process raw ma-

terials will be increased. Lenzing has invested approximately

EUR 40 mn in this project since the start of construction in 2019.

Investments

12 Annual Financial Report 2021 Lenzing Group

37 Annual Report 2021 Lenzing Group

Research and development activities in the Lenzing Group are con-

centrated in the Research and Development Department (R&D), a

corporate unit based in Lenzing. At the end of 2021, a total of 222

sta were employed in R&D. R&D expenditures, calculated accord-

ing to the Frascati method (after the deduction of grants),

amounted to EUR 31.6 mn (compared with EUR 34.8 mn in 2020).

Lenzing holds 1,487 patents and patent applications (from 190 pa-

tent families) in 52 countries as of the end of 2021.

The pandemic and its implications for public and private life con-

tinued to aect R&D in the year under review. Lenzing adapted its

R&D portfolio to these circumstances in order to continue to fully

support key projects and to further advance strategic topics such

as textile recycling and forward solutions (e.g. TENCEL™ Luxe and

LENZING™ Web Technology).

Focus areas in 2021

Sustainability is not only a core value within Lenzing’s strategy, but

also a guiding principle for innovation and product development.

In both process and product development, the R&D function is

continuously working on solutions that further support the ambi-

tious goal of carbon neutrality by 2050. A current focus in process

development is the further integration of the biorenery concept at

the pulp production sites, and consequently even better material

utilization of wood as raw material. Further projects focus on clos-

ing loops and reducing wastewater, as well as energy eciency

enhancement and the reduction of carbon dioxide emissions.

Lenzing continued to expand its product oering for the textile and

nonwovens industries in 2021. The hydrophobic LENZING™

Lyocell Dry ber, for example, combines the advantages of stand-

ard lyocell ber with the ability to repel moisture and liquid. Unlike

conventional cellulosic bers, water cannot penetrate the bers.

Instead, the water forms beads on the surface. This ber thereby

makes it possible to tap further application areas that were previ-

ously largely dependent on petroleum-based bers.

The Indigo Color technology, which forms the basis for a further

product innovation from the year under review, enables denim cus-

tomers to improve their range in terms of sustainability and quality.

With the aid of this pioneering technology, indigo pigments can be

integrated during ber production, which ensures better color fast-

ness than conventional indigo dyeing processes while consuming

far fewer resources.

With LENZING™ Web Technology, Lenzing developed a process

for producing cellulosic nonwovens directly from textile pulp,

thereby enabling processing steps along the value chain to be

saved, and the ecological footprint to be reduced. The Republic of

Austria highlighted this development’s innovative character in

2020 by awarding it the “State Prize for Innovation”.

In 2021, Lenzing was one of the few companies to receive sought-

after “Green Frontrunner” funding from the Austrian Research Pro-

motion Agency (FFG). “Green Frontrunner” funding helps establish

new, aggressive business area strategies that have a positive im-

pact on environmental and climate protection. The project that is

being funded bundles several technology areas relating to the fur-

ther closing of materials loops and reducing emissions in pulp and

ber production.

Innovation centers and

collaborations

In addition, intensive communication occurs with the application

and innovation centers in Hong Kong and Purwakarta, where new

applications for Lenzing’s textile bers are developed on site in co-

operation with customers. Based on these joint development ac-

tivities, Lenzing is intensifying global collaboration with partners

along the value chain.

In order to give further impetus to the circular economy, Lenzing

signed a partnership agreement with Swedish pulp producer Södra

in 2021. As part of this cooperation, the two companies intend to

share their knowledge and jointly develop new processes to recy-

cle used textiles. A capacity expansion for pulp from textile waste

is also planned. The aim is to be able to recycle approximately

25,000 tonnes of used textiles per year by 2025. Lenzing has been

proactively developing and promoting recycling innovations such

as its REFIBRA™ and Eco Cycle technologies for several years in

order to provide solutions to the global textile waste problem.

The rst TENCEL™ lyocell bers made from wood- and orange-

based ber pulp were presented during the third quarter. The rst

fabrics are currently being developed in collaboration with Italian

specialist Orange Fiber. The upcycling of orange peels as part of

the TENCEL™ Limited Edition Initiative represents a further suc-

cessful attempt by Lenzing to develop new circular solutions to-

gether with partners along the value chain.

After its opening in the previous year, in 2021 the nonwovens de-

velopment center at Hof University of Applied Sciences in Ger-

many was commissioned for internal and external customer trials.

In this state-of-the-art facility, new innovative applications for sus-

tainably produced nonwoven bers from Lenzing are developed

together with partners along the value chain.

Research and Development

13 Annual Financial Report 2021 Lenzing Group

38 Annual Report 2021 Lenzing Group

Environmental protection, sustainable business development and

responsibility for people form part of Lenzing’s fundamental stra-

tegic values. As a consequence, sustainability is rmly anchored

within the sCore TEN strategy. Current information about sustain-

ability is provided in the Lenzing Group Sustainability Report, which

also forms the consolidated non-nancial report in accordance

with Section 267a of the Austrian Commercial Code (UGB).

Non-nancial statement

14 Annual Financial Report 2021 Lenzing Group

39 Annual Report 2021 Lenzing Group

Current risk environment

The risks of new virus variants and varying success with vaccination

programs in the world’s regions are continuing to jeopardize stable

economic growth. In 2021, the global economy recovered from the

previous year’s recession, despite the ongoing COVID-19 pan-

demic. The International Monetary Fund estimates that growth

amounted to 5.9 percent in 2021 (-3.1 % in 2020). For 2022, the IMF

forecasts growth of 4.4 percent.

Signicant ination, especially in relation to commodities and en-

ergy, is likely to continue to have a major bearing on the global risk

environment in 2022. Risks such as supply chain problems, cyber

attacks and the consequences of climate change are becoming in-

creasingly signicant.

In addition, it has become increasingly important to monitor geopo-

litical risks. In particular, the war in Ukraine will have a negative impact

on the global economy. The Lenzing Group’s business is not directly

affected by the military conflicts in Ukraine. Indirectly, however, as is

the case for industry as a whole, the risk of further increases in energy

and raw material costs in particular, as well as negative effects on the

capital markets, is also increasing for Lenzing.

A detailed analysis of the trends in the global ber market during

the reporting year and the related risks for the Lenzing Group is

provided in the section “General Market Environment”.

Lenzing risk outlook for 2022

Increasingly global risks will aect the Lenzing Group’s business to

varying degrees in the future.

In 2021, the global textile and apparel industry recorded a broad-

based recovery from the previous year’s pandemic-related de-

mand shock, which also led to a recovery in demand and subse-

quently to rising prices on the world ber market. Risks to operating

results arise particularly from price uctuations for key raw materi-

als and energy, which lead to high volatility, especially also for

standard viscose. Growing demand for sustainable solutions in the

world is adding to the pressure on the standard viscose segment.

The stable trend and continued price premium for wood-based

specialty bers compared to standard bers such as cotton and

polyester continued to have a positive eect on the Lenzing

Group’s business performance in 2021. As a consequence, the

company continues to regard itself as very well positioned with its

sCore TEN strategy and its focus on growth deriving from specialty

bers.

Lenzing aims for further organic growth in this area in order to be

even more resilient to volatile markets in the future. The Group’s

own ber pulp supplies are secured long-term thanks to continu-

ous capacity expansions and sucient market supply. Investment

activities will focus on the implementation in Brazil of the world’s

largest pulp mill of its kind, including securing a plantation for the

supply of biomass. The commissioning of the new plant with a

nominal capacity of 500,000 tonnes per year is scheduled for the

rst half of 2022.

Signicant increases in energy, raw material and logistics costs

were recorded throughout the reporting year. Price momentum is

not expected to diminish in the short term. As far as currencies are

concerned, the US dollar uctuated against the euro within a

10 percent range, while the Chinese yuan uctuated against the

euro in a 9 percent range. A depreciation of the two currencies

would have a negative impact on Lenzing’s open currency volumes.

Liquidity risk is expected to be low in 2022 thanks to the stable

nancial structure.

No signicant loss events arising from operational, environmental

or product liability risks occurred in the reporting year.

For the two key projects in Brazil and Thailand, possible cost over-

runs or long-term delays that could have a negative eect on the

Lenzing Group’s nancial results are not anticipated from today’s

perspective. Despite the more challenging environment created by

COVID-19, the implementation of these projects ran largely ac-

cording to plan. In Thailand, the lyocell plant started production in

the rst quarter of 2022.

As at other companies, non-operational risks are playing an in-

creasingly important role in the Lenzing Group. In recent years, es-

pecially cyber risks, compliance risks (as well as reputational dam-

age that is often associated with compliance risks) and recruitment

risks have been increasingly ranked higher. Lenzing continuously

counters these risks with broadly rolled-out standards and a global

organizational structure.

Risk management

The main purpose of risk management within the Lenzing Group is

to secure and strengthen the company by correctly and transpar-

ently assessing nancial, operational and strategic risks, including

those relating to the ESG area. The Lenzing Group’s Managing

Board, together with the heads of the reporting departments, con-

ducts extensive coordinating and controlling operations as part of

a comprehensive integrated internal control system that covers all

locations. The timely identication, evaluation and response to

strategic and operational risks form essential components of these

management activities and make a signicant contribution to the

company’s value. This approach is based on a standardized,

Group-wide monthly reporting system and the ongoing monitoring

of strategic and operational plans.

Lenzing has implemented a corporate risk management system for

the central coordination and monitoring of risk management pro-

cesses throughout the Group. This system identies and analyzes

the main risks, together with input from the operating units, and

Risk Report

15 Annual Financial Report 2021 Lenzing Group

40 Annual Report 2021 Lenzing Group

communicates the results to the Managing Board and senior man-

agers. Risk management also includes the proactive analysis of po-

tential events and near-misses. Further tasks include actively con-

trolling risks and evaluating appropriate measures with the respec-

tive business areas. Since 2020, both long-term risks and opportu-

nities related to climate change have been identied and assessed

within the Lenzing Group. Mitigation measures corresponding to

such risks are taken into consideration in the risk management pro-

cess, including the requirements of the TCFD (Task Force on Cli-

mate-related Financial Disclosures) in relation to climate-related

risks.

Risk management strategy

Lenzing pursues a multi-step approach to risk management:

Risk analysis (based on the COSO

®1

Framework)

The Central Risk Management Department carries out semiannual

risk assessments with a ve-year time horizon at all production lo-

cations and functional units. Long-term risks and opportunities are

also analyzed in connection with ESG issues. The main risks, as well

as an increasing number of opportunities, are recorded and quan-

titatively assessed in accordance with international COSO

stand-

ards. Those risks are presented outside the consolidated statement

of nancial position and the consolidated income statement. The

nancial impact of a potential loss on Group EBITDA or on cash

and cash equivalents is taken into consideration. The risks are sim-

ulated against EBITDA planning, and the range of potential devia-

tions from the respective budget is determined. Lenzing uses a

simulation software which also calculates other KPIs such as value

at risk, risk-adjusted ROCE and a sensitivity analysis. Risks that can-

not be measured in monetary terms are recorded qualitatively.

Risk reduction

The objective is to minimize, avoid or, in certain cases, intentionally

accept risks based on appropriate measures. The actions taken de-

pend on the expected impact of the specic risk on the Group.

Responsibility

Individual risks are assigned on the basis of the existing organiza-

tion matrix. Each risk is assigned to a member of the Managing

Board as “risk owner” and to a risk ocer.

Risk monitoring/control

The eectiveness of the risk management system used by the Len-

zing Group was evaluated by KPMG Austria GmbH pursuant to

Rule 83 of the Austrian Corporate Governance Code (ACGC) as

part of a special, limited assurance audit in the reporting year.

Reporting

The main risks are presented in detail in a report and discussed with

the Managing Board and the Audit Committee. The risk report is

also submitted to the Supervisory Board.

Committee of Sponsoring Organizations of the Treadway Commission

Market environment risks

Market risk

As an international corporation, the Lenzing Group is exposed to a

variety of risks. The trend in prices and volumes for textile bers

and, to a lesser extent, also for nonwoven bers, is cyclical as it is

dependent on global and regional economic conditions. Lenzing

bers compete with cotton and synthetic bers in many submar-

kets. Consequently, price trends for these products also have an

inuence on Lenzing bers’ revenue and sales volumes trends.

The Lenzing Group counteracts this risk by steadily increasing the

share of specialty bers in its global product portfolio and a con-

sistent sustainability and innovation strategy. In addition to increas-

ing the share of specialty bers, which now accounts for around

72 percent of ber revenue, the aim is to further expand the com-

pany’s role as a leader in terms of sustainability in the ber sector.

Lenzing bers also oer a dierentiating feature in the standard -

ber sector with their high sustainability and quality standards com-

bined with customer-oriented and solutions-oriented technical

support.

The Lenzing Group relies on a strong international market presence,

especially in Asia, combined with a rst-class regional support net-

work for customers, as well as a high level of customer-oriented

product diversication.

Sales risk

A comparatively small number of major customers are responsible

for approximately one half of the Lenzing Group’s ber revenue. A

decrease in sales to these major customers, or the loss of one or

more major customers without an immediate replacement, poses

a certain risk. The company counteracts such risk with its global

presence and the continuous broadening of its client base and

sales segments. Possible default on trade receivables is covered by

clear receivables management and global credit insurance.

Competitive and innovation risks

The Lenzing Group is exposed to the risk of losing its position on

the ber market due to greater competition or new technologies

developed by competitors. In particular, the Lenzing Group could

relinquish its market position if it were no longer able to oer its

products at competitive prices, if its products were to fail to com-

ply with customer specications and quality standards, or if its cus-

tomer service were to fail to meet customer expectations. Lenzing

counteracts this risk with research and development activities that

exceed the average for the sector, and by a high level of product

innovation and steady cost optimization. The Lenzing Group – sim-

ilar to other producers – is exposed to the risk that acceptable or

superior alternative products may become available and at more

favorable prices than wood-based cellulosic bers.

Laws and regulations

The Lenzing Group is confronted with dierent legal systems and

regulations in its global markets. A change in laws or other regula-

tions (e.g. import duties, product classications, environmental re-

quirements etc.), as well as a more stringent interpretation of exist-

ing regulations and laws, could lead to signicant additional costs

16 Annual Financial Report 2021 Lenzing Group

41 Annual Report 2021 Lenzing Group

or competitive disadvantages. The Lenzing Group maintains certi-

ed management systems for quality management according to

ISO 9001, for environmental management according to ISO 14001,

and for safety management according to ISO 45001. Legal compli-

ance in connection with these management systems is regularly

audited both internally and externally.

With its own legal and compliance department, the Lenzing Group

has a corporate division that performs corresponding consulting

services and risk assessments.

In response to the far-reaching implications of global warming for

society and ecosystems, governments and further stakeholders are

likely to introduce more stringent laws and regulations. For exam-

ple, in addition to reducing carbon credits issued in the EU, new

taxes on carbon dioxide emissions could be introduced. Other re-

gions and countries are currently also planning to implement similar

steps. The implementation of regionally diering measures could

have a negative impact on the Lenzing Group’s civic performance

and success. The Lenzing Group is implementing a number of

measures to reduce climate-related transition risks, and to further

enhance resilience in this area.

Intellectual property risks

A risk exists that Lenzing’s intellectual property may be infringed or

incompletely protected. The Lenzing Group counters such risks by

means of a dedicated intellectual property protection department.

Climate change and marine pollution

Increasing awareness of problems caused by climate change, such

as rising sea levels, the frequency and severity of natural disasters,

and a growing risk from pollution of the world’s oceans by plastic

waste and microplastics, are creating major risks for the entire ber

industry. By producing biodegradable bers, Lenzing regards this

development as an opportunity for its business model.

The Lenzing Group has recognized the far-reaching eects of cli-

mate change on society and ecosystems and oers a sustainable

alternative with its innovative and biodegradable products. Lenzing

is constantly working to set clear sustainability targets and is con-

tinuously seeking ways to enhance its energy eciency as well as

opportunities to utilize renewable energy sources or those with

lower carbon dioxide emissions. As early as 2020, Lenzing became

the rst ber manufacturer to commit to carbon neutrality by 2050.

ESG (Environment, Social and Governance)

As part of a materiality analysis conducted in 2021, Lenzing con-

ducted a multi-stage, holistic survey of the main issues relating to

its sustainably oriented business model. From this analysis, the

most important risks and opportunities were determined for each

ESG topic area. The topics are integrated into the Enterprise Risk

Management System and are successively reected in Lenzing’s

long-term strategic business planning.

In the environmental responsibility area (Environment), the main fo-

cus topics in the risk matrix comprise climate-related issues in con-

nection with global warming (carbon dioxide reduction) as well as

sustainable raw material procurement (wood, chemicals) and the

growing water shortage in certain regions. Increasing regulation,

particularly in relation to the taxation of greenhouse gases and the

pricing of carbon, represents a signicant risk for Lenzing. Regula-

tions concerning greenhouse gas emissions have already been in-

troduced in countries where Lenzing operates carbon-intensive

processes. Lenzing is consistently working on the implementation

of energy eciency measures, as well as the reduction of carbon

dioxide emissions in order to reduce the potential burden of eco-

taxes.

For Lenzing, wood is the most important natural resource for the

production of its biodegradable cellulosic bers. Despite sustaina-

ble sourcing policies and backward-integrated production, a risk

exists that wood prices will rise due to climate change, increasing

global demand for biomass, and alternative land use. In this context,

Lenzing is expanding its pulp capacities in Brazil (see Lenzing Risk

Outlook).

The global textile industry, especially the fashion industry in which

Lenzing’s products are frequently deployed, is regarded in a critical

light due to its sometimes resource-intensive consumption of raw

materials and its production processes. Lenzing identies signi-

cant business opportunities through access to new and emerging

markets with innovative new products and technologies. Innova-

tion and sustainability lie at the heart of Lenzing’s sCore TEN cor-

porate strategy.

The production of pulp and bers is associated with high levels of

water consumption and emissions. Lenzing operates a careful

global water management system that ensures compliance with

both local laws and global standards. Lenzing is counteracting the

increasing scarcity of water by continuously improving resource

utilization and by optimizing the selection of sites for the expansion

of production capacities.

In the area of social responsibility (Social), the main risks were iden-

tied in the area of cyber attacks (see IT risks). With regard to the

corporate governance area (Governance), the risk of inadequate

compliance with corporate governance and resultant risks is con-

sidered material. Lenzing is continuously tightening its internal

rules and expanding its compliance organization accordingly.

Operational risks

Procurement risk (including pulp supplies)

The Lenzing Group purchases large volumes of raw materials

(wood, pulp, chemicals) and energy for the manufacture of its cel-

lulosic bers. Fiber production and related margins are exposed to

risks arising from the availability and prices of these raw materials,

which can uctuate to the Lenzing Group’s disadvantage and may

increase as a consequence of climate change. Such risks are coun-

tered through the careful selection of suppliers based on price, re-

liability and quality criteria, EcoVadis-based sustainability assess-

ments, as well as the establishment of long-standing, stable sup-

plier-customer partnerships, in some cases with multi-year or long-

term supply agreements. In addition, all suppliers must comply

with Lenzing’s Global Supplier Code of Conduct. Nevertheless, a

risk exists of violations of this code, which may have a negative im-

pact on the Lenzing Group and its stakeholders along the value

chain. Supply chain risks may also result from disruptions caused

by natural disasters.

Lenzing has also entered into long-term contractual relationships

with several raw material suppliers and service partners. These

17 Annual Financial Report 2021 Lenzing Group

42 Annual Report 2021 Lenzing Group

agreements require Lenzing to purchase specied quantities of

raw materials on standardized terms and conditions, which may

also include price adjustment clauses. Lenzing may consequently

not be able to adjust prices, purchase volumes or other contract

conditions over the short term in order to respond to market

changes.

The sCore TEN strategy includes an increased focus on backwards

integration through the expansion of the Group’s own cellulose

production.

Operating risks, environmental risks and risks

relating to climate change

The production of wood-based cellulosic bers involves complex

chemical and physical processes that cause certain environmental

risks. These risks are very well controlled thanks to proactive and

sustainable environmental management, closed production cycles,

ongoing emissions monitoring and state-of-the-art production

techniques. Lenzing continuously works on increasing safety and

environmental standards through voluntary references such as the

EU Ecolabel. As the Lenzing Group has operated production facil-

ities at several locations for several decades, risks arising from en-

vironmental damage in earlier periods cannot be completely ex-

cluded.

Although the Lenzing Group has set very high technological and

safety standards for the construction, operation and maintenance

of its production sites, the risk of breakdowns, disruptions and ac-

cidents cannot be completely excluded. These types of disruptions

can also be caused by external factors over which Lenzing has no

control. It is impossible to provide direct protection against certain

natural hazards, such as cyclones, earthquakes and oods. More-

over, a risk exists that personal injury, material and environmental

damage, both within and outside the production facilities, could

result in substantial claims for damages and even criminal liability.

The Lenzing Group’s production activities are concentrated at a

small number of locations. Any disruption at one of these facilities

has a negative impact on the company’s business operations.

Product liability risk

The Lenzing Group markets and sells its products and services to

customers worldwide. These business activities can lead to dam-

age to customers, or along the value chain, through the delivery of

a defective product by Lenzing or one of its subsidiaries. Moreover,

product safety can be jeopardized by pollution, which may cause

problems in the value chain, such as potential health implications

for employees and customers. Lenzing is also subject to local laws

in the countries where its products are delivered. Especially in the

USA, the potential implications are considered to be severe. Such

risk is countered by a special department that focuses exclusively

on customers’ problems in processing Lenzing products and on

handling complaints. Appropriate precautions in the production

process and regular quality inspections have been implemented.

Third party damages caused by Lenzing are covered by a global

liability insurance program.

Financial risks

For a detailed description of nancial risks refer to notes 36 to 39

in the Notes to the Consolidated Financial Statements.

Tax risk

The Lenzing Group’s production sites are subject to local tax reg-

ulations in their respective countries and are required to pay cor-

poration tax as well as other taxes. Changes in tax legislation or dif-

ferent interpretations of prevailing regulations could lead to subse-

quent tax liabilities.

Compliance

Increasingly stringent international codes of conduct and legal reg-

ulations are creating additional demands on Lenzing in relation to

compliance and monitoring. Inadequate controls in business pro-

cesses or a lack of documentation can lead to the violation of ap-

plicable laws or regulations, and signicantly jeopardize reputation

and commercial success. Lenzing addresses this risk by, among

other measures, continuously developing its Group-wide compli-

ance organization, the corporate code of conduct that is valid

throughout the Group, as well as directives addressing the areas of

bribery and corruption, money laundering and antitrust practices.

Further information on compliance is provided in the Corporate

Governance Report.

IT risks

Lenzing depends on highly developed information technology (IT)

systems for its daily operations. IT systems are vulnerable to a

range of problems, including software and hardware malfunctions,

malicious hacking and cyberattacks, physical damage to key IT

centers, and computer virus infections. Consequently, any major

damage, disruption and/or circumvention of its existing IT systems

may disrupt Lenzing’s business operations.

Personnel risks

Personnel risks may arise through the turnover of key sta as well

as the recruiting of new sta at all global sites. The Lenzing Group

has established a Human Resources Department which operates

internationally and coordinates personnel planning with the re-

spective sites. It is responsible for the central management and

monitoring of all personnel-related issues, including the organiza-

tion of global management and training programs for potential ex-

ecutives.

At the production facilities, Lenzing Group employees as well as

external contractors’ workers and employees are exposed to a risk

of injury. Lenzing’s “Heartbeat for Health & Safety” program takes

such risk into consideration and includes a strategic approach to

risk reduction, precautionary measures and extensive training. For

more information, please refer to the Lenzing Group Sustainability

Report. In addition, risks related to compliance with legal require-

ments arise when engaging contractors, particularly in connection

with the two major projects in Thailand and Brazil.

Risks relating to major projects

The Lenzing Group is continuously expanding its capacities in nu-

merous projects. Examples include the new pulp mill in Brazil and

the lyocell mill in Thailand, which is being ramped up at present.

These types of major projects entail an inherent risk of cost and

schedule overruns. Lenzing counters such risks with a standardized

planning process, consistent project management, ongoing cost

controls, as well as insurance solutions and risk transfer. In addition

18 Annual Financial Report 2021 Lenzing Group

43 Annual Report 2021 Lenzing Group

to ongoing risk management, Monte Carlo simulations are used for

projects of this and similar size to model the sensitivity of the key

nancial indicators. Despite the currently dicult environment due

to the COVD-19 pandemic, progress with these two projects is

largely running to schedule to date.

Risks from an external perspective

and for other stakeholders

As a globally operating company, the Lenzing Group is aware of its

social responsibility. The risks described in the risk report refer pri-

marily to the eect on the Lenzing Group’s assets and earnings. As

one of the sustainability leaders in its sector, the Lenzing Group

seeks a balance between the needs of society, the environment

and the economy. The company assumes such responsibility, par-

ticularly with respect to potential eects of its operations on neigh-

bors of the production sites and in relation to society as a whole.

Active stakeholder work to mitigate risks (partnership for systemic

change) and to create additional benets for people and the envi-

ronment is a clear goal of the Lenzing Group’s innovation and op-

erating activities. The Lenzing Group was awarded platinum status

in EcoVadis’s CSR rating in the reporting year. This evaluation co-

vers the most important practices in the Corporate Social Respon-

sibility (CSR) area. In cooperation with its partners, the Lenzing

Group is working on understanding the risks for stakeholders and

on nding solutions to mitigate such risks. This work is based on

open communication and transparency as well as continuous im-

provement of technologies and sustainable practices.

19 Annual Financial Report 2021 Lenzing Group

44 Annual Report 2021 Lenzing Group

The Lenzing Group’s internal control system is designed to safe-

guard the reliability of nancial reporting, ensure compliance with

legal regulations and corporate guidelines, and present the risks

not reported on the consolidated statement of nancial position or

in the consolidated income statement.

The Lenzing Group’s organizational structure and processes form

the main basis for the control environment and the internal control

system. The organizational structure includes the assignment of

specic authorities and responsibilities to the various management

and hierarchy levels at the Austrian sites and at all international sub-

sidiaries. Key Group functions are centralized in corporate centers

which reect Lenzing’s global market presence as well as its de-

centralized business and site structure. The respective manage-

ment teams are responsible for coordinating and monitoring busi-

ness operations at national level.

Lenzing’s process organization is characterized by a well-devel-

oped and comprehensive set of guidelines which provide an eec-

tive foundation for a strong controlling environment and control

system. Important Group-wide approval processes and responsi-

bilities are dened in the Lenzing Group Mandates. The manage-

ment of each business area or department is responsible for mon-

itoring compliance with the respective regulations and controls.

Financial reporting

The Corporate Accounting & Tax Department has central respon-

sibility for nancial reporting, the accounting-related internal con-

trol system, and tax issues within the Lenzing Group.

The goal of the accounting-related control system is to ensure the

uniform application of legal standards, generally accepted ac-

counting principles, and the accounting regulations specied in the

Austrian Commercial Code. This system also covers the consoli-

dated accounting process and thereby ensures compliance with

the rules dened by International Financial Reporting Standards

(IFRS) and internal accounting guidelines, in particular the Group

accounting manual and schedules. The accounting-related internal

control system is designed to safeguard the timely, uniform and ac-

curate recording of all business processes and transactions. It

thereby supports the preparation of reliable data and reports on the

Lenzing Group’s nancial position and nancial performance. The

subsidiaries included in the consolidated nancial statements pre-

pare nancial statements in accordance with both local laws and

IFRS standards at the company level on a timely basis. The subsid-

iaries are responsible for the decentralized implementation of ex-

isting rules and are supported and monitored in these activities by

the Corporate Accounting & Tax function. The Supervisory Board’s

Audit Committee is integrated in the accounting-related control

system. In addition, the annual nancial statements are audited by

external certied public accountants and the half-year nancial

statements are reviewed on a voluntary basis.

The Global Treasury Department, and above all the payments unit,

is classied as a highly sensitive area due to its direct access to the

company’s assets. The accompanying increased need for security

is reected in comprehensive regulations and instructions for all

relevant processes. The entire process, from procurement through

to payment, is subject to stringent corporate guidelines. These

guidelines are largely supported by a Group-wide IT system which

requires stringent functional separation, a clear authorization con-

cept to prevent authorization conicts as well as a stringent dual

control principle for transaction settlement, in particular for pay-

ments, as well as regular reporting, among other measures.

The Internal Audit Department is responsible for monitoring the ap-

plication of, and compliance with, controls in business operations.

Compliance with legal regulations

and internal guidelines

The Lenzing Group’s Legal, Intellectual Property & Compliance

Department is responsible for legal management. This centralized

function handles legal matters within the Lenzing Group and is also

responsible for the Compliance Management System (CMS). To-

gether with the Managing Board, it oversees Group-wide compli-

ance with legal regulations and internal guidelines as well as the

prevention of legal violations and improper behavior. The Legal, In-

tellectual Property & Compliance Department reports directly to

the Lenzing Group CEO. The CMS evaluates compliance-relevant

risks, analyzes deviations from standards and, if necessary, takes

measures to reduce them (“prevent, detect, respond”). This depart-

ment also draws up compliance-relevant guidelines and supports

employee training activities worldwide. The Managing Board and

the Supervisory Board (or the Audit Committee) receive regular re-

ports on compliance measures.

The Lenzing Group complies with the rules dened by the Austrian

Corporate Governance Code (ACGC) and prepares a Corporate

Governance Report which is published as part of the Annual Report.

The Corporate Governance Report requires the participation of the

Supervisory Board, which delegates the responsibility for monitor-

ing compliance with the related obligations to the Audit Commit-

tee.

The Corporate Audit Department is independent of all other organ-

izational units and business processes and reports directly to the

CFO. It evaluates whether the Group’s resources are deployed le-

gally, economically, eciently and correctly in the interests of sus-

tainable development. The Corporate Audit Department’s activi-

ties are based on the international standards published by the In-

stitute of Internal Auditors (IIA). Regular reporting to the Managing

Board and the Audit Committee ensure the proper functioning of

the internal control system.

Report on the Key Elements of the Internal Control System

(Section 243a Para. 2 of the Austrian Commercial Code)

20 Annual Financial Report 2021 Lenzing Group

45 Annual Report 2021 Lenzing Group

Reporting of risks outside the

statement of nancial position and

income statement

The Risk Management Department is responsible for the reporting

of risks that are not reported on the statement of nancial position

or in the income statement, and prepares a semi-annual risk report

for this purpose. The major risks are also discussed in the Annual

Report. The risk report is based on the international COSO

stand-

ards (Committee of Sponsoring Organizations of the Treadway

Commission).

Enterprise Risk Management adopts a holistic approach in this

context. In addition to corporate and project risks included in me-

dium-term planning, the focus is increasingly on the long-term

consideration and evaluation of ESG criteria and the associated

opportunities and risks for the sustainable development of the Len-

zing Group’s performance and protability.

21 Annual Financial Report 2021 Lenzing Group

46 Annual Report 2021 Lenzing Group

Share capital and shareholder

structure

The share capital of Lenzing AG amounted to a total of

EUR 27,574,071.43 as of the balance sheet date and is divided into

26,550,000 no-par-value shares. B&C Group is the majority share-

holder with an investment in the voting rights of 50 percent plus

two shares. NN Group N.V. holds approximately 5 percent of the

shares. The free oat amounts to approximately 45 percent. This is

divided between Austrian and international investors. The Lenzing

Group holds no treasury shares.

Position of shareholders

Each no-par-value share grants the shareholder one vote at the

Shareholders’ General Meeting of Lenzing AG. Unless provided

otherwise by mandatory provisions of the Austrian Stock Corpora-

tion Act (AktG), the Shareholders’ General Meeting passes resolu-

tions by a simple majority of the votes cast and – if a majority of

the share capital is required – by a simple majority of the share

capital represented at the Shareholders’ General Meeting.

Lenzing AG has no shares with special control rights. A resolution

passed by the Annual General Meeting on June 18, 2020 author-

ized the Managing Board, subject to the consent of the Supervisory

Board, to purchase treasury shares in the company for a period of

30 months starting on the date of the resolution pursuant to Sec-

tion 65 Paras. 1 no. 4 and 8 and Paras. 1a and 1b AktG. The treasury

shares acquired by the company may not exceed ten percent of

the company’s share capital. The consideration to be paid for the

repurchase must lie within a range of plus/minus 25 percent of the

weighted average closing price on the last 20 stock exchange days

preceding the start of the corresponding repurchasing program of

the Lenzing share.

The Managing Board was also authorized, subject to the consent

of the Supervisory Board, to withdraw repurchased treasury shares

without any further resolution by the Shareholders’ General Meet-

ing (including the authorization of the Supervisory Board to adopt

changes to the articles of association resulting from withdrawing

the shares), or to resell them and to determine the conditions of

sale. This authorization can be exercised in full, in several parts and

in pursuit of one or several objectives by the company, by a sub-

sidiary (Section 189a no. 7 of the Austrian Commercial Code [UGB])

or by third parties for the company’s account.

In addition, the Managing Board was authorized for a period of ve

years from the date of the resolution to approve the sale of treasury

shares, subject to the consent of the Supervisory Board, in any

manner permitted by law other than through the stock exchange or

public oer, and also to exclude shareholders’ repurchasing rights

(subscription rights), and to determine the conditions of sale.

A resolution passed by the Annual General Meeting on April 12,

2018 authorized the Managing Board, subject to the consent of the

Supervisory Board, to increase the share capital by up to

EUR 13,787,034.68 through the issue of up to 13,274,999 no-par-

value bearer shares – including in tranches – in exchange for cash

and/or non-cash capital contributions, within ve years from the

entry of the changes in the articles of association in the commercial

ditions (“authorized capital”). This authorized capital was recorded

in the commercial register on May 23, 2018.

The statutory subscription right may be granted to shareholders in

such a manner that the convertible bonds be assumed by a bank

or a syndicate of banks with the obligation to oer them to the

shareholders in accordance with their subscription right (indirect

subscription right).

The Managing Board was also authorized, subject to the consent

of the Supervisory Board, to exclude shareholders’ subscription

rights in the event of a capital increase from the authorized capital

in whole or in part (i) if the capital increase in exchange for non-

cash capital contributions is carried out for the purpose of acquir-

ing companies, parts of companies, operations, parts of operations,

participating interests in companies or other assets connected with

an acquisition project, (ii) to satisfy an over-allotment option

(greenshoe) or (iii) to compensate for fractional amounts.

In addition, the Managing Board was authorized by a resolution of

the Annual General Meeting on April 12, 2018 to issue, subject to

the consent of the Supervisory Board, convertible bonds in one or

several tranches that grant or provide for the subscription or con-

version right or a subscription or conversion obligation for up to

13,274,999 shares in the company. These can be serviced through

conditional capital to be approved and/or treasury shares. The is-

sue price and issue conditions are to be determined by the Man-

aging Board, subject to the consent of the Supervisory Board; the

issue amount and the exchange ratio are to be determined in ac-

cordance with recognized methods of nancial mathematics and

the price of the company’s shares in a recognized pricing proce-

dure. This authorization is valid until April 12, 2023.

The statutory subscription right may be granted to shareholders in

such a manner that the convertible bonds be assumed by a bank

or a syndicate of banks with the obligation to oer them to the

shareholders in accordance with their subscription right (indirect

subscription right).

Shareholder structure and information on capital

22 Annual Financial Report 2021 Lenzing Group

47 Annual Report 2021 Lenzing Group

The Managing Board was authorized, subject to the consent of the

Supervisory Board, to exclude the subscription right of sharehold-

ers when issuing convertible bonds in whole or in part (i) if the con-

vertible bonds are issued in exchange for non-cash capital contri-

butions for the purpose of acquiring companies, parts of compa-

nies, operations, parts of operations, participating interests in com-

panies or other assets relating to an acquisition project, or (ii) for

the compensation of fractional amounts resulting from the sub-

scription ratio.

The Managing Board was also authorized, subject to the approval

of the Supervisory Board, to exclude the subscription right for con-

vertible bonds in whole or in part, provided that the Managing

Board, after due examination, arrives at the conclusion that the is-

sue price of the convertible bonds at the time of the nal determi-

nation of the issue price is not less than the hypothetical market

value determined according to recognized, in particular nancial-

mathematical, methods and that the conversion price or subscrip-

tion price (issue price) of the subscription shares is determined tak-

ing into account recognized methods of nancial mathematics and

the price of the company’s ordinary shares in a recognized pricing

procedure, and is not lower than the stock market price of the

company’s shares during the last 20 trading days prior to the date

of announcement of the issue of convertible bonds.

The Managing Board did not utilize the existing authorizations dur-

ing the reporting year.

The 77th Annual General Meeting of Lenzing AG was held in virtual

format via livestream on April 14, 2021 due to the COVID-19 pan-

demic. Detailed information about the Annual General Meeting,

proposals for resolutions and the results of voting are published on

the website Lenzing AG: https://www.lenzing.com/inves-

tors/shareholders-meeting/2021.

The 78th Annual General Meeting on April 26, 2022 will also be

held in virtual format via livestream due to the ongoing COVID-19

pandemic.

Further disclosures pursuant to

Section 243a of the Austrian

Commercial Code

No provisions exist other than those stipulated by law that cover

the appointment or dismissal of members of the Managing or Su-

pervisory boards.

The Dexco Group (formerly the Duratex Group) has a put option

and has the right to divest its interest in the LD Celulose joint ven-

ture in the event of a change of control at the Lenzing Group

(change of control clause).

Besides this, the company has not entered into any signicant

agreements that would take eect, change or expire in the event

of a change in control as the consequence of a takeover bid. No

compensation agreements exist between the company and the

members of the Managing and Supervisory boards or with employ-

ees that would take eect in the event of a public takeover oer.

23 Annual Financial Report 2021 Lenzing Group

48 Annual Report 2021 Lenzing Group

The International Monetary Fund forecasts global growth of

4.4 percent for 2022. However, the economic recovery from the

deep recession caused by COVID-19 remains at risk, and continues

to depend on the further course of the pandemic and its implica-

tions for individual economic sectors. The sharp rise in energy

costs and problems in global supply chains pose further economic

challenges. In addition, it has become increasingly important to

monitor geopolitical risks. In particular, the military conicts in

Ukraine will have a negative impact on the global economy. The

currency environment is expected to remain volatile in the regions

relevant to Lenzing.

The extensive recovery in demand in the global textile and apparel

industry also led to a recovery in demand and rising prices on the

world ber market in 2021. In the trend-setting market for cotton,

signs are emerging of a slight increase in stock volumes in the cur-

rent 2021/2022 harvest season, although dynamics on interna-

tional commodity markets and global supply chain problems are

likely to continue to have a signicant impact on price trends in

2022. At their peak, ber pulp prices rose by more than 50 percent

in 2021. The price stood at USD 905 per tonne as of December 31,

2021.

Lenzing continues to assume growth in demand for environmen-

tally compatible bers for the textile and clothing industry as well

as the hygiene and medical sectors. However, the currently posi-

tive market environment continues to be characterized by uncer-

tainty due to the ongoing pandemic. Visibility remains limited as a

consequence. Following signicant cost increases in 2021, ongoing

cost pressure on the energy, raw materials and logistics sides is

expected in the rst quarters of 2022.

Taking into consideration the aforementioned factors and the im-

minent commissioning and completion of the key strategic pro-

jects, which will already make an initial contribution to earnings

starting in the current nancial year, the Lenzing Group anticipates

that EBITDA in 2022 will lie signicantly above the 2021 level.

Lenzing, March 01, 2022

Lenzing Aktiengesellschaft

The Managing Board

Outlook

Cord Prinzhorn

Chief Executive Ocer

Thomas Obendrauf

Chief Financial Ocer

Robert van de Kerkhof

Member of the Managing Board

Stephan Siela

Member of the Managing Board

Christian Skilich

Member of the Managing Board

24 Annual Financial Report 2021 Lenzing Group

The key financial indicators for the Lenzing Group are described in

detail in the following section These indicators are derived primari-

ly from the IFRS consolidated financial statements of the Lenzing

Group and are found in this annual report, above all, in the sections

“Selected Indicators of the Lenzing Group” and “Five-Year Over-

view of the Lenzing Group”. The definitions of the indicators are

summarized in the glossary to the annual report. The Managing

Board believes these financial indicators provide useful information

on the financial position of the Lenzing Group because they are

used internally and are also considered important by external

stakeholders (in particular investors, banks and analysts).

EBITDA, EBITDA margin, EBIT and EBIT margin

EBITDA and EBIT are viewed by the Lenzing Group as the bench-

marks for the strength of operating earnings and profitability (per-

formance) before and after depreciation and amortization. Due to

their significance – also for external stakeholders – the EBIT is

presented on the consolidated income statement and EBITDA is

presented in the Financial Performance Indicators and, in order to

provide a comparison of margins, in relation to group revenue (as

the EBITDA margin and EBIT margin).

EUR mn 2021 2020 2019 2018 2017

Earnings before interest and tax (EBIT)  















Amortization of intangible assets and depreciation of property,

plant and equipment and right-of-use assets     

- Income from the release of investment grants () () () () ()

Earnings before interest, tax, depreciation and amortization

(EBITDA)  















EUR mn 2021 2020 2019 2018 2017

Earnings before interest and tax (EBIT)  















/ Revenue     

EBIT margin  















1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see note 2 of the

consolidated nancial statements as at December 31, 2021).

EBT

EBT measures the pre-tax earnings strength of the Lenzing Group

and is shown on the consolidated income statement.

Gross cash flow

In the Lenzing Group, gross cash flow serves as the benchmark for

the company's ability to convert gains/losses from operating activ-

ities (before changes in working capital) into cash and cash

equivalents. This indicator is presented in the consolidated state-

ment of cash flows.

Free cash flow

The free cash flow generated by the Lenzing Group shows the

cash flow generated by operating activities – after the deduction

of investments – which is available to service the providers of debt

and equity. This indicator is also important for external stakehold-

ers.

Appendix: Notes on the Financial Performance Indicators

of the Lenzing Group

EUR mn 2021 2020 2019 2018 2017

Earnings before interest, tax, depreciation and amortization (EBITDA)  















/ Revenue     

EBITDA margin  















25 Annual Financial Report 2021 Lenzing Group

EUR mn 2021 2020 2019 2018 2017

Cash flow from operating activities     

- Cash ow from investing activities () () () () ()

Net inow from the sale and disposal of subsidiaries and other

business areas

   () ()

Acquisition of nancial assets and investments accounted for

using the equity method

    

- Proceeds from the sale/repayment of nancial assets () () () () ()

Free cash flow () ()   

CAPEX

CAPEX shows the expenditures for intangible assets, property,

plant and equipment and biological assets. It is presented in the

consolidated statement of cash flows.

Liquid assets

Liquid assets show the Lenzing Group's ability to meet due pay-

ment obligations immediately with available funds. This indicator is

also used to calculate other financial ratios (e.g. net financial debt;

see below).

EUR mn as at 31/12 2021 2020 2019 2018 2017

Cash and cash equivalents     

+ Liquid bills of exchange (in trade receivables)     

Liquid assets     

Trading working capital and trading working

capital to annualized group revenue

Trading working capital in the Lenzing Group is a measure for

potential liquidity and capital efficiency. It is used to compare

capital turnover by relating it to group revenue.

EUR mn as at 31/12 2021 2020 2019 2018 2017

Inventories     

+ Trade receivables     

- Trade payables () () () () ()

Trading working capital     

EUR mn 2021 2020 2019 2018 2017

Latest reported quarterly group revenue (= 4th quarter respectively)     

x 4 (= annualized group revenue)     

Trading working capital to annualized group revenue     

26 Annual Financial Report 2021 Lenzing Group

Adjusted equity and adjusted equity ratio

Adjusted equity shows the Lenzing Group's independence from

the providers of debt and its ability to raise new capital (financial

strength). This figure includes equity as defined by IFRS as well as

government grants less the proportional share of deferred taxes.

Adjusted equity is used to compare equity and debt with total

assets. This (and/or a similar indicator) is occasionally used as a

financial covenant by lenders.

EUR mn as at 31/12 2021 2020 2019 2018 2017

Equity     

+ Non-current government grants     

+ Current government grants     

- Proportional share of deferred taxes on government grants () () () () ()

Adjusted equity     

/ Total assets     

Adjusted equity ratio     

Net financial debt, net financial debt/EBITDA,

net gearing and net debt

Net financial debt is used by the Lenzing Group as the benchmark

for its financial indebtedness and capital structure. It is also an

important indicator for external stakeholders. The relation of this

indicator to EBITDA shows the number of periods in which the

same level of EBITDA must be generated to cover net financial

debt. The ratio of net financial debt to adjusted equity (net gearing)

illustrates the relation of net debt to adjusted equity. This (and/or a

similar indicator) is occasionally used as a financial covenant by

lenders. Net debt in the Lenzing Group measures the level of

financial debt, including the provisions for severance payments

and pensions.

EUR mn as at 31/12 2021 2020 2019 2018 2017

Current financial liabilities     

+ Non-current nancial liabilities     

- Liquid assets () () () () ()

Net financial debt     

Earnings before interest, tax, depreciation and amortization

(EBITDA)

 















Net financial debt / EBITDA  















EUR mn as at 31/12 2021 2020 2019 2018 2017

Net financial debt     

/ Adjustedequity     

Net gearing     

EUR mn as at 31/12 2021 2020 2019 2018 2017

Net financial debt     

+ Provisions for severance payments and pensions     

Net debt     

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see note 2 of the

consolidated nancial statements as at December 31, 2021).

27 Annual Financial Report 2021 Lenzing Group

Return on capital (ROE, ROI and ROCE)

Return on capital employed (ROCE) is the Lenzing Group's

benchmark for the yield (return) on the capital employed in the

operating business. It is also an important indicator for external

stakeholders. Return on capital (ROE) and return on investment

(ROI) are profitability indicators which measure the earnings

strength of the Lenzing Group.

EUR mn 2021 2020 2019 2018 2017

Earnings before interest and tax (EBIT)  















- Proportional share of current income tax expense (on EBIT) () ()



() () ()

Earnings before interest and tax (EBIT) less proportional share of

current income tax expense (NOPAT)  ()















/ Average capital employed     

ROCE (return on capital employed)  ()







 



Proportional share of current income tax expense (on EBIT) () ()



() () ()

Proportional share of other current tax expense  



  



Current income tax expense () () () () ()

EUR mn as at 31/12 2021 2020 2019 2018 2017

Total assets     

- Trade payables () () () () ()

- Non-current puttable non-controlling interests () ()   ()

- Other non-current liabilities () () ()



()



()



- Other current liabilities () () ()



()



()



- Current tax liabilities () () () () ()

- Deferred tax liabilities () () () () ()

- Proportional share of deferred taxes on government grants () () () () ()

- Current provisions () () ()



()



()



- Non-current provisions () () ()



()



()



+ Provisions for severance payments and pensions     

- Cash and cash equivalents () () () () ()

- Investments accounted for using the equity method () () () () ()

- Financial assets () () () () ()

As at 31/12     

As at 01/01     

Average capital employed     

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see note 2 of the

consolidated nancial statements as at December 31, 2021).

2) Reclassication of accruals from provisions to other liabilities in accordance with IAS 1 (see note 2 in the notes to the consolidated nancial statements 2020).

28 Annual Financial Report 2021 Lenzing Group

EUR mn as at 31/12 2021 2020 2019 2018 2017

Adjusted equity 31/12     

Adjusted equity 01/01     

Average adjusted equity     

EUR mn 2021 2020 2019 2018 2017

Earnings before tax (EBT)     

/ Average adjusted equity     

ROE (return on equity)     

EUR mn as at 31/12 2021 2020 2019 2018 2017

Total assets 31/12     

Total assets 01/01     

Average total assets     

EUR mn 2021 2020 2019 2018 2017

Earnings before interest and tax (EBIT)  















/ Average total assets     

ROI (return on investment)  







 



1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see note 2 of the

consolidated nancial statements as at December 31, 2021).

29 Annual Financial Report 2021 Lenzing Group

2021

Consolidated

Financial

Statements

of the Group

Content

Content Notes 31

Consolidated Income Statement 32

Consolidated Statement

of Comprehensive Income 33

Consolidated Statement

of Financial Position 34

Consolidated Statement

of Changes in Equity 35

Consolidated Statement of Cash Flows 37

Notes to the Consolidated

Financial Statements 38

CHAPTER

30 Annual Financial Report 2021 Lenzing Group

Content notes

Notes to the Consolidated Financial Statements 38

Note 1. General Information 38

Note 2. Changes in accounting policies 40

Note 3. Consolidation 44

Note 4. Segment reporting 46

Notes on the Consolidated Income Statement 49

Note 5. Revenue 49

Note 6. Functional costs 49

Note 7. Other operating income 49

Note 8. Other operating expenses 49

Note 9. Cost of material and other purchased services 50

Note 10. Personnel expenses 50

Note 11. Amortization of intangible assets, depreciation of

property, plant and equipment and right-of-use

assets 50

Note 12. Auditor’s fees 52

Note 13. Income from investments accounted for using

the equity method 53

Note 14. Income from non-current and current

nancial assets 53

Note 15. Financing costs 53

Note 16. Income tax expense 53

Note 17. Earnings per share 54

Notes to the Consolidated Statement of Financial Position,

the Consolidated Statement of Comprehensive Income

and the Consolidated Statement of Changes in Equity 55

Note 18. Intangible assets 55

Note 19. Property, plant and equipment 57

Note 20. Biological assets 59

Note 21. Right-of-use assets 60

Note 22. Investments accounted for using the equity method 62

Note 23. Financial assets 64

Note 24. Other non-current assets 64

Note 25. Inventories 64

Note 26. Trade receivables 65

Note 27. Other current assets 65

Note 28. Equity 65

Note 29. Government grants 69

Note 30. Financial liabilities 70

Note 31. Deferred taxes (deferred tax assets and liabilities)

and current taxes 71

Note 32. Provisions 74

Note 33. Trade payables 79

Note 34. Other liabilities 80

Notes to the Consolidated Statement of Cash Flows 81

Note 35. Disclosures on the Consolidated Statement

of Cash Flows 81

Notes on Risk Management 82

Note 36. Capital risk management 82

Note 37. Disclosures on nancial instruments 83

Note 38. Net interest and net result from nancial

instruments and net foreign currency result 94

Note 39. Financial risk management 95

Disclosures on Related Parties and Executive Bodies 103

Note 40. Related party disclosures 103

Note 41. Executive Bodies 105

Other Disclosures 106

Note 42. Financial guarantee contracts, contingent assets

and liabilities, other nancial obligations and

legal risks 106

Note 43. Group companies 107

Note 44. Signicant events after the end

of the reporting period 108

Note 45. Authorization of the consolidated nancial

statements 108

31 Annual Financial Report 2021 Lenzing Group

32 Annual Financial Report 2021 Lenzing Group

Lenzing AG

Consolidated Income Statement

for the period from January 1 to December 31, 2021

EUR '000

Note 2021 2020

Revenue () 2,194,624 1,632,607

Cost of sales () (1,692,760) (1,386,412)

Gross prot 501,864 246,195

Other operating income () 78,026 59,145

Selling expenses () (233,981) (156,932)

Administrative expenses () (117,547) (88,236)

Research and development expenses () (23,993) (16,181)

Other operating expenses () (3,753) (10,133)

Earnings before interest and tax (EBIT)

200,615 33,85 8

Income from investments accounted for using the equity method () (3,541) 5,674

Income from non-current and current nancial assets () 7,881 (5,402)

Financing costs () (22,029) (11,878)

Financial result (17,689) (11,607)

Earnings before tax (EBT)² 182,926 22,251

Income tax expense () (55,212) (32,84 6)

Net prot/loss for the year 127,714 (10,595)

Attributable to:

Shareholders of Lenzing AG 110,346 6,277

Non-controlling interests (11,382) (18,762)

Share planned for hybrid capital owners () 28,750 1,890

Earnings per share EUR EUR

Diluted = basic () 4.16 0.24

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see note 2).

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

EBT: Earnings before tax.

33 Annual Financial Report 2021 Lenzing Group

Lenzing AG

Consolidated Statement of Comprehensive Income

for the period from January 1 to December 31, 2021

EUR '000

Note 2021 2020

Net prot/loss for the year 127,714 (10,595)

Items that will not be reclassied subsequently to prot or loss

Remeasurement of dened benet liability () (1 ,691) 633

Financial assets measured at fair value through other comprehensive income (equity instruments) – net fair value

gain/loss on remeasurement recognized during the year

() 32,926 (2,646)

Income tax relating to these components of other comprehensive income () (7,802) 259

Investments accounted for using the equity method – share of other comprehensive income (net of tax) () 105 (106)

23,537 (1,861)

Items that may be reclassied to prot or loss

Foreign operations – foreign currency translation dierences arising during the year () 107,394 (111,317)

Financial assets measured at fair value through other comprehensive income (debt instruments) – net fair value

gain/loss on remeasurement recognized during the year

() (36) (34)

Financial assets measured at fair value through other comprehensive income (debt instruments) – reclassication of

amounts relating to nancial assets disposed during the year

() 124 0

Cash ow hedges – eective portion of changes in fair value recognized during the year and non-designated

components

() (23,337) (118,851)

Cash ow hedges – reclassication to prot or loss () 3,173 3,90 1

Income tax relating to these components of other comprehensive income () (3,575) 6,447

Investments accounted for using the equity method – share of other comprehensive income (net of tax) () 79 (6,574)

83,822 (226,428)

Other comprehensive income (net of tax) 107,359 (228,289)

Total comprehensive income 235,073 (238,884)

Attributable to:

Shareholders of Lenzing AG 211,065 (160,540)

Non-controlling interests (4,74 3) (80,234)

Share planned for hybrid capital owners 28,750 1,890

34 Annual Financial Report 2021 Lenzing Group

Lenzing AG

Consolidated Statement of Financial Position

as at December 31, 2021

EUR '000

Assets Note 31/12/2021 31/12/2020

Intangible assets () 36,049 29,669

Property, plant and equipment () 2,877,606 2,068,059

Biological assets () 95,767 84,254

Right-of-use assets () 70,129 65,761

Investments accounted for using the equity method () 24,840 29,088

Financial assets () 38,869 40,890

Deferred tax assets () 3,581 2,409

Current tax assets () 14,937 15,157

Other non-current assets () 42,723 25,915

Non-current assets 3,204,501 2,361,202

Inventories () 476,956 329,370

Trade receivables () 325,1 72 249,662

Current tax assets () 1,921 7,410

Other current assets () 168,710 145,347

Financial assets () 32,232 0

Cash and cash equivalents () 1,113,27 9 1,069,998

Current assets 2,118,27 0 1,801,786

Total assets 5,322,771 4,162,988

Equity and liabilities Note 31/12/2021 31/12/2020

Share capital 27,574 27,574

Capital reserves 133,9 19 133,919

Hybrid capital 496,582 496,582

Other reserves 15,134 (117,928)

Retained earnings 1,206,359 1,192,800

Equity attributable to shareholders of Lenzing AG 1,879,568 1,732,947

Non-controlling interests 192,517 148,480

Equity () 2,072,085 1,881,427

Financial liabilities () 1,981,036 1,446,876

Government grants () 13,688 14,184

Deferred tax liabilities () 59,806 42,411

Provisions () 118,180 120,383

Puttable non-controlling interests () 234,409 140,3 41

Other liabilities () 6,740 26,861

Non-current liabilities 2,413,860 1,791,055

Financial liabilities () 120,125 105,616

Trade payables () 414,768 19 5,200

Government grants () 44,168 19,878

Current tax liabilities 38,293 2,390

Provisions () 39,088 25,657

Other liabilities () 180,382 141,765

Current liabilities 836,826 490,506

Total equity and liabilities 5,322,771 4,162,988

35 Annual Financial Report 2021 Lenzing Group

Lenzing AG

Consolidated Statement of Changes in Equity

for the period from January 1 to December 31, 2021

Note Share capital Capital reserves Hybrid capital

Foreign currency

translation reserve

As at 01/01/2020 27,574 133,919 0 61,189

Net prot/loss for the year as per consolidated income

statement

0 0 0 0

Other comprehensive income (net of tax) 0 0 0 (102,259)

Total comprehensive income 0 0 0 (102,259)

Hedging gains and losses and cost of hedging transferred to

the cost of non-current assets and cost of inventory 0 0 0 0

Acquisition/disposal of non-controlling interests and other

changes in the scope of consolidation

() 0 0 0 0

Increase in capital () 0 0 496,582 0

Measurement of puttable non-controlling interest recognized

directly in equity

() 0 0 0 0

Dividends paid 0 0 0 0

Transactions with equity holders 0 0 496,582 0

As at 31/12/2020 = 01/01/2021 27,574 133,919 496,582 (41,069)

Net prot/loss for the year as per consolidated income

statement

0 0 0 0

Other comprehensive income (net of tax) 0 0 0 89,522

Total comprehensive income 0 0 0 89,522

Hedging gains and losses and cost of hedging transferred to

the cost of non-current assets and cost of inventory

0 0 0 0

Acquisition/disposal of non-controlling interests and other

changes in the scope of consolidation

() 0 0 0 0

Increase in capital () 0 0 0 0

Measurement of puttable non-controlling interest recognized

directly in equity

() 0 0 0 0

Dividends paid (including hybrid coupon) () 0 0 0 0

Transactions with equity holders 0 0 0 0

As at 31/12/2021 () 27,574 133,91 9 496,582 48,452

36 Annual Financial Report 2021 Lenzing Group

EUR '000

Other reserves Retained earnings

Equity attributable

to shareholders of

Lenzing AG and to

hybrid capital

owners

Non-controlling

interests

Equity

Financial assets

measured at fair value

through other

comprehensive

income

Hedging reserve and

non-designated

components

Actuarial

gains/losses

10,698 3,770 (47,000) 1,322,856 1,513,006 24,854 1,537,860

0 0 0 8,167 8,167 (18,762) (10,59 5)

(2,010) (62,69 7) 149 0 (166,817) (61,472) (228,289)

(2,010) (62,697) 149 8,167 (158,650) (8 0,234) (238,884)

0 20,232 0 0 20,232 16,041 36,273

0 0 0 2,118 2,118 100,206 102,324

0 0 0 0 496,582 87,813 584,395

0 0 0 (140,341) (140,341) 0 (140,341)

0 0 0 0 0 (200) (20 0)

0 0 0 (138,223) 358,359 187,819

546,178

8,687 (38,695) (46,851) 1,192,800 1,732,947 148,48 0 1,881,427

0 0 0 139,096 139,096 (11,382) 127,714

24,760 (12,441) (1,122) 0 100,719 6,640 107,359

24,760 (12,441) (1,122) 13 9,096 239,815 (4,743) 235,073

0 32,342 0 0 32, 342 30,559 62,901

0 0 0 (2,718) (2,718) 2,718 0

0 0 0 0 0 15,678 15,678

0 0 0 (94, 068) (94,068) 0 (94,068)

0 0 0 (28,750) (28,750) (175) (28,925)

0 0 0 (125,536) (125,536) 18,221 (107,316)

33,448 (18,794) (47,973) 1,206,359 1,879,568 192,517 2,072,085

37 Annual Financial Report 2021 Lenzing Group

Lenzing AG

Consolidated Statement of Cash Flows

for the period from January 1 to December 31, 2021

EUR '000

Note 2021 2020

Net prot/loss for the year 127,714 (10,595)

+ Amortization of intangible assets and depreciation of property, plant and equipment and right-of-use assets () 164,269 160,448

+/– Change in the fair value of biological assets () (2,258) 10,334

– Income from the release of investment grants (1,944) (1 ,979)

+/– Change in non-current provisions (4,908) (5,394)

–/+ Income / expenses from deferred taxes 6,838 10,768

+/– Change in current tax assets and liabilities 42,727 (15,299)

+/– Income from investments accounted for using the equity method 4,431 (4,883)

–/+ Other non-cash income / expenses () 35,128 (1 6,568)

Gross cash ow 371,999 126,831

+/– Change in inventories (144,902) 81,439

+/– Change in receivables (75,115) (38,360)

+/– Change in liabilities 242,049 (1 20,965)

Change in working capital 22,032 (77,885)

Cash ow from operating activities 394,030 48,946

– Acquisition of intangible assets, property, plant and equipment and biological assets (CAPEX) (844 ,333) (668,760)

– Acquisition of nancial assets and investments accounted for using the equity method (7,328) (4,050)

+ Proceeds from the sale of intangible assets, property, plant and equipment and biological assets 4,810 5,046

Proceeds from the sale/repayment of nancial assets and the sale of investments accounted for using the

equity method

5,567 1,546

Cash ow from investing activities (841,285) (666,219)

+ Capital injections to consolidated companies by non-controlling interests 1 5,577 84,458

+ Increase of hybrid capital () 0 495,443

– Dividends paid (including hybrid coupon) () (28,925) (200)

+ Investment grants 1,095 1,618

+ Increase of bonds and private placements () 0 131,691

+ Increase in other nancial liabilities () 626,384 604,277

– Repayment of bonds and private placements () (56,000) (37,500)

– Repayment of other nancial liabilities () (87,584) (144,691)

Cash ow from nancing activities 470,548 1,135,096

Total change in liquid funds 23,293 517,823

Liquid funds at the beginning of the year 1,069,998 571, 479

Currency translation adjustment relating to liquid funds 19,987 (19,304)

Liquid funds at the end of the year 1,113,279 1,069,998

Additional information on payments in the cash ow from operating activities:

Interest payments received 3,963 1,742

Interest payments made 34,315 19,449

Income taxes paid 9,087 33,533

Distributions received from investments accounted for using the equity method 890 40

Annual Report 2021 Lenzing Group 9

Lenzing AG

Notes to the Consolidated Financial Statements

as at December 31, 2021

General Information

Note 1. Basic information

Description of the company and its business

activities

Lenzing Aktiengesellschaft (Lenzing AG), which maintains its regis-

tered headquarters in 4860 Lenzing, Werkstrasse 2, Austria, is the

parent company of the Lenzing Group (the “Group”). The shares of

Lenzing AG are listed in the Prime Market Segment (since April 18,

2011) and in the ATX benchmark index (since September 19, 2011) of

the Vienna Stock Exchange in Vienna, Austria.

The core shareholder of Lenzing AG as at December 31, 2021 is the

B&C Group, which directly and indirectly holds an investment of

50 percent plus two shares (December 31, 2020: 50 percent plus

two shares) in the share capital of Lenzing AG. The direct majority

shareholder of Lenzing AG is B&C KB Holding GmbH, Vienna. The

indirect majority shareholder of Lenzing AG, which prepares and

publishes consolidated nancial statements that include the

Lenzing Group, is B&C Holding Österreich GmbH, Vienna. The

ultimate parent company of the B&C Group, and therefore also of

Lenzing AG, is B&C Privatstiftung, Vienna.

The core business of the Lenzing Group is the production and mar-

keting of wood-based cellulosic bers. The pulp required for pro-

duction is manufactured for the most part in the Group’s own

plants and is supplemented by external purchases.

Basis of Reporting

The consolidated nancial statements for the period from Janu-

ary 1 to December 31, 2021 were prepared in accordance with the

International Financial Reporting Standards (IFRSs) and interpreta-

tions which were endorsed in the EU and required mandatory

application as of the reporting date. The additional requirements of

Section 245a Para. 1 of the Austrian Commercial Code (“Unterneh-

mensgesetzbuch”) were also met.

The reporting currency is the euro (EUR), which is also the func-

tional currency of Lenzing AG. The functional currency of the ma-

jority of the subsidiaries is the euro (EUR) or US-Dollar (USD). The

gures shown in these consolidated nancial statements and notes

were rounded to the next thousand, unless indicated otherwise

(“EUR '000”). The use of automatic data processing tools can lead

to rounding dierences in the addition of rounded amounts and

percentage rates.

Eects of the COVID-19 crisis on the annual

results

Business trends in the 2021 nancial year improved signicantly

compared to the same period of the previous year due to the pos-

itive market environment. In preparing the consolidated nancial

statements, the Managing Board has taken into consideration the

eects of the COVID-19 crisis, in particular with regard to estima-

tion uncertainties and judgments (such as in the context of the cor-

porate planning used to determine recoverable amounts). Addi-

tional information on the eects of the COVID-19 crisis and the

measures taken by the Lenzing Group can be found in the group

management report.

As part of the preparation of the consolidated nancial statements,

the management is responsible for assessing the company’s ability

to continue as a going concern. If material uncertainty exists with

regard to events or conditions that may raise signicant doubt con-

cerning the company’s ability to continue as a going concern, such

uncertainty must be explained. Based on the estimates of the Len-

zing Group’s management and considering all available infor-

mation regarding the future, which covers a minimum of twelve

months after the balance sheet date, such uncertainties do not ex-

ist. On the basis of the secured liquidity situation, the continued

strong position in the markets relevant to Lenzing and the expec-

tation that the negative eects of the COVID-19 crisis will gradually

abate over the course of 2022, the management estimates that the

group has sucient resources as of the approval date to enable it

to continue operations in the foreseeable future. Therefore, the

consolidated nancial statements were prepared based on the as-

sumption of the group’s ability to continue as a going concern.

38 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 10

Measurement

Assets and liabilities are principally measured at amortized or de-

preciated cost. In contrast, other measurement methods are used

for the following material positions:

●

Biological assets are measured at their fair value.

●

Provisions are measured at the present value of the expected

settlement amount.

●

Deferred tax assets and deferred tax liabilities are recognized

at their nominal value. They are measured on the basis of the

temporary dierences existing as at the reporting date and the

eective tax rate expected when the dierences are realized.

●

Derivative nancial instruments and nancial assets measured

at fair value through prot or loss and at fair value through other

comprehensive income are measured at their fair value.

●

Puttable non-controlling interests are measured at fair value

through other comprehensive income.

Estimation uncertainty and judgments

The Managing Board of Lenzing AG uses estimates, assumptions

and judgments in preparing the IFRS consolidated nancial state-

ments. These estimates, assumptions and judgments are based on

the circumstances assumed as at the reporting date and can have

a signicant eect on the presentation of the Group’s nancial po-

sition and nancial performance. They involve the recognition and

measurement of assets and liabilities, contingent receivables and

liabilities, the reporting of cash ows and income and expenses (in-

cluding other comprehensive income) as well as the presentation

of disclosures in the notes.

The Lenzing Group is committed to the ecologically responsible

production of bers from the renewable raw material wood and is

very concerned about climate protection. In preparing the consol-

idated nancial statements, the Managing Board has taken into

consideration the eects of climate change, in particular with re-

gard to estimation uncertainties and judgments (such as in the con-

text of the corporate planning used to determine recoverable

amounts). Overall, no signicant discernible eects arise at present.

Assumptions and estimates

The following future-oriented assumptions and other major

sources of estimation uncertainty at the reporting date could have

signicant eects on these consolidated nancial statements of

the Lenzing Group:

●

Intangible assets and property, plant and equipment (see

note 11): determination of the recoverable amount in connec-

tion with impairment testing as dened in IAS 36 (impairment).

●

Biological assets (see note 20): determination of fair value less

costs to sell.

●

Cash and cash equivalents (see note 37): Assessing the classi-

cation of money market funds as cash equivalents.

●

Financial instruments (see note 37 and 39): determination of

fair values and expected credit losses.

●

Provisions (see note 32): determination of the expected settle-

ment amount and the net liability of the dened benet pen-

sion and severance payment plans.

●

Puttable non-controlling interests (see note 37): determination

of fair value less costs to sell.

●

Deferred taxes and receivables from current taxes (see note 31):

assessment of the extent to which deferred tax assets (in par-

ticular, from loss carryforwards) can be utilized and assess-

ment of the recoverability of receivables from current taxes.

●

Research and development expenses (see note 18): assess-

ment of capitalization and impairment of development ex-

penses.

Assumptions and estimates are based on experience and other

factors that are considered relevant by the Managing Board. How-

ever, the amounts actually realized can deviate from these assump-

tions and estimates if general conditions develop in a dierent way

than the expectations as at the reporting date.

Judgments when applying accounting policies

The application of accounting policies by the Lenzing Group in-

cluded the following major judgments, which had a material inu-

ence on the amounts reported in the consolidated nancial state-

ments:

●

Liabilities within the scope of reverse factoring agreements

(see note 33): assessment of the requirements for derecogni-

tion as dened in IFRS 9 (nancial instruments).

●

Full consolidation and equity method (see note 3, note 37, and

note 43): assessment of the existence of control over subsidi-

aries and assessment of the existence of joint control or signif-

icant inuence. Application of the present access method to

puttable non-controlling interests.

●

Receivables from the sale of and measurement of investments

accounted for using the equity method (see note 22): evalua-

tion and measurement of the partial sale of the investment in

EQUI-Fibres Beteiligungsgesellschaft mbH (EFB), Kelheim,

Germany.

●

Evidence of impairment (see note 11): evaluation of indications

of impairment resp. for impaired cash-generating units evalu-

ation of the occurrence of material changes in comparison

with the previous year.

39 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 11

Note 2. Changes in accounting

policies

The accounting policies applied by the Lenzing Group in 2021 re-

mained unchanged in comparison with the previous nancial year,

with the exception of the changes described in this section.

Mandatory changes in accounting policies

The following new and amended standards and interpretations

were adopted into EU law and required mandatory application by

the Lenzing Group beginning with the 2021 nancial year:

Standards/interpretations

Publication by

the IASB

Mandatory

application

according to

IASB for

nancial years

from

Adopted by

the EU as at

31/12/2021

IFRS 4

Extension of the

temporary exemption

from applying IFRS 9

in IFRS 4

// // yes

IFRS 16

Extension of practical

expedient: Covid-19-

Related Rent

Concessions

// // yes

IFRS 9,

IAS 39,

IFRS 7,

IFRS 4,

IFRS 16

IBOR-Reform

(Phase 2)

// // yes

The new or amended standards and interpretations applicable as

of January 1, 2021 did not result in any signicant changes to the

consolidated nancial statements of the Lenzing Group.

The following new or amended standards and interpretations had

been published by the IASB prior to the preparation of these con-

solidated nancial statements, but did not require mandatory ap-

plication by the Lenzing Group for nancial years beginning on or

before January 1, 2021:

Standards/interpretations

Publication

by the IASB

Mandatory

application

according to

IASB for

nancial

years from

Adopted by

the EU as at

31/12/2021

IFRS 3

References to the

Conceptual Framework

// // yes

IFRS 10,

IAS 28

Sale or contribution of

assets between an

investor and its

associate or joint

venture

// unknown



IFRS 14

Regulatory Deferral

Accounts

// // no



IFRS 17 Insurance Contracts // // yes

IFRS 17

Initial Application of

IFRS 7 and IFRS 9 –

Comparative

Information

// // no

IAS 1

Amendment of

classication of

liabilities as current or

non-current

// // no

IAS 1

Disclosure of

Accounting Policies

// // no

IAS 8

Denition of

Accounting Estimates

// // no

IAS 12

Deferred Tax related to

Assets and Liabilities

arising from a Single

Transaction

// // no

IAS 16

Property, plant and

equipment – Proceeds

before intended use

// // Yes

IAS 37

Onerous contracts –

Cost of fullling a

contract

// // yes

Various

Annual Improvements

of IFRSs 2018-2020 // // yes

1) The IASB has deferred the eective date of this standard indenitely.

2) The European Commission does not recommend the adoption of interim standard

IFRS 14 into EU law at the present time.

The Lenzing Group applies the practical relief for the accounting of

COVID-19-related rent concessions. The change comprises a vol-

untary practical expedient for leases in which the Lenzing Group is

the lessee. For leases to which the practical expedient is applied,

this permits the Lenzing Group not to assess whether qualifying

rent concessions occurring as a direct consequence of the COVID-

19 pandemic are lease modications. Rent reductions EUR 0 thou-

sand (2020: EUR 58 thousand) were recognized as negative varia-

ble lease payments in the consolidated income statement during

the 2021 nancial year.

The other above-mentioned new or amended standards and inter-

pretations were not adopted prematurely by the Lenzing Group.

They are either not relevant for the Group or do not have a material

impact on the earnings, assets or liabilities and the cash ows of

the Lenzing Group.

The application of these standards and interpretations is generally

planned following their endorsement by the EU.

40 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 12

Voluntary changes in accounting policies

Since the beginning of the 2021 nancial year, the Lenzing Group

has reported its consolidated income statement applying the cost

of sales method. The previous presentation was according to the

nature of expense method. The modication in the presentation of

the income statement aims to enhance the international compara-

bility of the Lenzing Group’s consolidated income statement. As

part of this transition, some amounts previously aecting

EBIT/EBITDA were reclassied to the nancial result (capitalized

borrowing costs for the production of non-current assets amount-

ing to EUR 21,166 thousand in 2021, 2020: EUR 8,429 thousand, net

interest from dened benet plans of EUR minus 1,757 thousand in

2021, 2020: EUR minus 2,144 thousand, and loan commitment fees

of EUR minus 2,432 thousand in 2021, 2020: EUR minus

2,033 thousand). All amounts were adjusted retrospectively. The

Lenzing Group’s performance continues to be measured by

EBITDA (earnings before interest, tax, depreciation on property,

plant and equipment and right-of-use assets and amortization of

intangible assets and before income from the release of investment

grants) (see note 4 for reconciliation). The following table shows the

reconciliation from the nature of expense method to the cost of

sales method:

41 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 13

Reconciliation from nature of expense method to cost of goods sold method

2021

Consolidated

Income Statement

– Cost of goods

sold method

Revenue

Change in

inventories of

nished goods and

work in progress

Own work

capitalized

Other operating

income

Consolidated Income Statement –

Nature of expense method

   

Revenue  

Cost of sales ()  

Gross prot 

Other operating income  

Selling expenses ()

Administrative expenses ()

Research and development expenses ()

Other operating expenses ()

Earnings before interest and tax (EBIT) 

Reconciliation from nature of expense method to cost of goods sold method

2020

Consolidated

Income Statement

– Cost of goods

sold method Revenue

Change in

inventories of

nished goods and

work in progress

Own work

capitalized

Other operating

income

Consolidated Income Statement –

Nature of expense method  () 







Revenue  

Cost of sales () () 

Gross prot 

Other operating income  

Selling expenses ()

Administrative expenses ()

Research and development expenses ()

Other operating expenses ()

Earnings before interest and tax (EBIT) 

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result.

42 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 14

EUR '000

Gains or losses

from the fair value

measurement of

biological assets

Cost of material

and other

purchased services

Personnel expenses

Other operating

expenses

Amortization of

intangible assets

and depreciation of

property, plant and

equipment and

right-of-use assets

Income from the

release of

investment grants

Earnings before

interest and tax

(EBIT)

 () () () ()  

 () () () () 

() () () ()

() () () () 

() () () () 

()

EUR '000

Gains or losses

from the fair value

measurement of

biological assets

Cost of material

and other

purchased services Personnel expenses

Other operating

expenses

Amortization of

intangible assets

and depreciation of

property, plant and

equipment and

right-of-use assets

Income from the

release of

investment grants

Earnings before

interest and tax

(EBIT)

() () ()



()



()  

() () () () () 

() () () () 

() ()  () 

() () () ()

() ()

43 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 15

In the 2020 nancial year, a voluntary modication was imple-

mented regarding the presentation of accrued liabilities. Accrued

liabilities were presented within provisions until the 2020 nancial

year. In the course of the annual analysis to optimize presentation,

the Lenzing Group identied that the liability character of this type

of debt predominates. In accordance with IAS 1.41, current accru-

als of EUR 48,925 thousand (December 31, 2019: EUR 73,016 thou-

sand; January 1, 2019: EUR 94,072 thousand) were therefore re-

classied from current provisions to other current liabilities and

non-current accruals of EUR 1,523 thousand (December 31, 2019:

EUR 538 thousand; January 1, 2019: EUR 1,109 thousand) were re-

classied from non-current provisions to other non-current liabili-

ties. The total amount of liabilities consequently remains un-

changed.

Note 3. Consolidation

Scope of consolidation

The consolidated nancial statements of the Lenzing Group in-

clude Lenzing AG, as the parent company, and its subsidiaries, all

on the basis of nancial statements as at December 31, 2021.

The number of companies included in the scope of consolidation

developed as follows:

Development of the number of consolidated

companies (incl. parent company)

2021 2020

Full- Equity Full- Equity

consolidation consolidation

As at 01/01    

Included in consolidation for the rst

time during the year

   

Merged during the year ()  () 

Deconsolidated during the year () ()  ()

As at 31/12    

Thereof in Austria    

Thereof abroad    

A list of the group companies as at December 31, 2021 is provided

in note 43. The most important group companies produce and

market wood-based cellulosic bers (Segment Division Fiber) and,

in some cases, pulp (Segment Division Pulp).

In March 2021, the interest in the joint venture Hygiene Austria LP

GmbH, Wiener Neudorf, Austria, which was previously accounted

for using the equity method (see note 22), was divested and de-

consolidated.

In October 2021, the subsidiary Nanjing Fabor Waste Water Treat-

ment Co., Ltd, Nanjing, China, was merged with Lenzing (Nanjing)

Fibers Co., Ltd, Nanjing, China.

In November 2021, the previously fully consolidated subsidiaries

Avit Investments Limited, Providenciales, Turks & Caicos, and

Penique S.A., Panama, Panama, were liquidated and deconsoli-

dated.

In January 2020, the Dexco-Group (formerly known as Duratex

Group) acquired a 49 percent share in LD Celulose S.A., Sao Paulo,

Brazil as agreed. Lenzing AG holds a majority of 51 percent and

thus exercisea control over LD Celulose S.A. The change in share-

holdings was the result of an asymmetric capital increase, which

was conducted by both parties. The pro-rata equity (49 percent) of

LD Celulose S.A. amounted to EUR 100,205 thousand at the time

the Duratex Group acquired the shares and corresponds to the

amount recognized under non-controlling interests. The propor-

tionate contribution by Duratex amounted to EUR 102,362 thou-

sand. The dierence of EUR 2,158 thousand was recognized di-

rectly in equity under retained earnings. As part of the capital in-

crease, the Duratex Group contributed biological assets and prop-

erty, plant and equipment to LD Celulose and carried out further

cash capital increases.

The Dexco-Group has a put option for its shares (puttable non-

controlling interests). Lenzing AG applies the present access

method for the accounting of this liability deriving from puttable

non-controlling interests. Accordingly, the Dexco Group’s non-

controlling interest in LD Celulose S.A. continues to be recognized

in equity and a nancial liability is recognized for its puttable inter-

est. The initial recognition and subsequent measurement of the li-

ability is at fair value through retained earnings (not aecting net

income).

In February 2020, all shares held in the associate WWE Wohn- und

Wirtschaftspark Entwicklungsgesellschaft m.b.H., Vienna were

sold and deconsolidated.

In April 2020, the joint venture Hygiene Austria LP GmbH, Wiener

Neudorf, Austria was founded for the production of protective

masks and consolidated at-equity.

In July 2020, 100 percent of the shares in Nanjing Fabor Waste Wa-

ter Treatment Co., Ltd, Nanjing, China, were acquired and fully

consolidated. The assets sold to the Lenzing Group were predom-

inantly assets which in their entirety form a wastewater treatment

plant. The purchase price amounted to EUR 16,060 thousand and

was paid in cash. The acquisition was therefore recognized as an

asset deal in the consolidated nancial statements. The payment is

recognized in the consolidated statement of cash ows under ac-

quisition of intangible assets, property, plant and equipment and

biological assets (CAPEX). The purchase price was allocated pro-

portionately to the individual identiable assets and liabilities on the

basis of their fair values at the acquisition date.

44 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 16

The assets and liabilities at the date of initial consolidation are

shown below:

Fair value at acquisition date EUR '000

Intangible assets 

Property, plant and equipment 

Trade receivables 

Current tax assets 

Cash and cash equivalents 

Total assets 

Current tax liabilities 

Total liabilities 

Net assets 

In September 2020, the subsidiary Lenzing Technik GmbH, Len-

zing, Austria, was merged with Lenzing AG.

In December 2020, the subsidiary Lenzing Fibers India Private Lim-

ited, Coimbatore, India, was founded and included in the scope of

fully consolidated companies.

Basis of consolidation

Subsidiaries are companies controlled by the parent company. The

Lenzing Group decides individually for each acquisition whether

the non-controlling interests in the acquired subsidiary will be rec-

ognized at fair value or based on the proportional share of the ac-

quired net assets. On acquisition, non-controlling interests are

measured at fair value or the corresponding share of recognized

net assets and are reported under equity and comprehensive in-

come as “non-controlling interests”.

The investments in associates and joint ventures are accounted for

by applying the equity method.

In January 2021, the Lenzing Group acquired 100 percent of the

shares in an insurance cell of White Rock Insurance (Europe) Pro-

tected Cell Company Limited, La Valletta, Malta. This company has

an insurance concession and enables the Lenzing Group to admin-

ister its operationally necessary insurance policies more eectively.

As of the acquisition date, the insurance cell did not have any sig-

nicant assets or liabilities. It is classied as a structured entity from

acquisition date and fully consolidated.

Until March 2021, Lenzing AG controlled assets in the GF 82

wholesale fund, a special fund pursuant to Section 20a of the Aus-

trian Investment Fund Act (öInvFG), on the basis of its comprehen-

sive co-determination rights. The fund was classied as a struc-

tured entity and fully consolidated. The securities held by the fund

were intended, above all, to fulll the securities coverage require-

ments for the pension provisions related to Austrian pension plans

as required by Section 14 of the Austrian Income Tax Act (öEStG).

The material risks to which the fund wass exposed were un-

changed and represented traditional investment risks (especially

default and market price risks). In March 2021, the shares in whole-

sale fund GF 82 were sold and deconsolidated.

The structured entities include those assets and liabilities that are

held by the Lenzing Group.

The reporting currency of Lenzing AG and the Lenzing Group is the

euro. The subsidiaries prepare their annual nancial statements in

their respective functional currency. The following key exchange

rates were used for translation into the reporting currency:

Exchange rates for key currencies

2021 2020

Unit Currency

End of the

year

Average

End of the

year

Average

1 EUR USD US Dollar    

1 EUR GBP

British

Pound

   

1 EUR CZK

Czech

Koruna    

1 EUR CNY

Renminbi

Yuan    

1 EUR BRL

Brazilian

Real

   

45 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 17

Note 4. Segment reporting

Due to the introduction of a new group-wide organization, the

composition of the segments has changed as of the 2021 nancial

year. Internal reporting to the chief operating decision maker, i.e.

the plenary Managing Board, was adjusted accordingly as at Janu-

ary 1, 2021. A retrospective presentation of the segment reporting

in accordance with the new composition of the segments is not

possible due to the signicant changes in the segments and the

resultant unavailability of nancial accounting information. For this

reason, the tables below show the old composition of the seg-

ments for the 2020 comparison year.

The reportable segments are now the “Division Fiber”, “Division

Pulp” and “Others” (previously “Fibers”, “Lenzing Technik” and

“Others”). The Lenzing Group classies its segments based on the

dierences between their products, which require individual tech-

nologies and market strategies.

The Division Fiber produces all three generations of wood-based

cellulosic bers and markets them under the product brands

TENCEL™, VEOCEL™, LENZING™ ECOVERO™ and LENZING™.

The products made from lyocell, modal and viscose bres are used

for the production of textiles as well as nonwovens and special ap-

plications.

The Division Pulp produces and procures dissolving pulp, which is

the necessary primary and intermediate product for ber produc-

tion. The pulp is used for the company’s own cellulosic ber pro-

duction and marketed externally. The ber and pulp production

systems are used and managed independently of each other.

“Others” mainly includes central headquarters functions, overarch-

ing activities and the business activities of BZL-Bildungszentrum

Lenzing GmbH, Lenzing (training and personnel development).

Information on business segments (new segment structure) EUR '000

2021

Division

Fiber

Division

Pulp

Others

Segment

total

Recon-

ciliation

Group

Revenue from external customers      

Inter-segment revenue     () 

Total revenue     () 

EBITDA (segment result)   ()  () 

EBIT   ()  () 

Amortization of intangible assets and depreciation of property, plant and

equipment and right-of-use assets

     

Income from investments accounted for using the equity method  () () ()  ()

Other material non-cash income and expenses  ()    

Acquisition of intangible assets, property, plant and equipment and

biological assets (CAPEX)

    () 

EBITDA margin

  ()  - 

EBIT margin

  ()  - 

Information on business segments (former segment structure) EUR '000

2021 Fibers

Lenzing

Technik

Other

Segment

total

Recon-

ciliation

Group

Revenue from external customers      

Inter-segment revenue     () 

Total revenue     () 

EBITDA (segment result)     () 

EBIT  ()   () 

Amortization of intangible assets and depreciation of property, plant and

equipment and right-of-use assets

     

Income from investments accounted for using the equity method   () ()  ()

Other material non-cash income and expenses      

Acquisition of intangible assets, property, plant and equipment and

biological assets (CAPEX)      

EBITDA margin

    - 

EBIT margin

 ()   - 

1) EBITDA margin = EBITDA (operating result before depreciation and amortization) in relation to total revenue (here: according to segment reporting).

2) EBIT margin = EBIT (operating result) in relation to total revenue (here: according to segment reporting).

46 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 18

Information on business segments (former segment structure)

(previous year)

EUR '000

2020 Fibers

Lenzing

Technik

Other

Segment

total

Recon-

ciliation

Group

Revenue from external customers      

Inter-segment revenue     () 

Total revenue     () 

EBITDA (segment result) 







 



 



EBIT 







 



 



Amortization of intangible assets and depreciation of property, plant and

equipment and right-of-use assets

    () 

Income from investments accounted for using the equity method      

Other material non-cash income and expenses  ()   () 

Acquisition of intangible assets, property, plant and equipment and

biological assets (CAPEX)      

EBITDA margin









 







EBIT margin









 







Segment assets      

Thereof investments accounted for using the equity method      

Segment liabilities      

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see note 2).

2) EBITDA margin = EBITDA (operating result before depreciation and amortization) in relation to total revenue (here: according to segment reporting).

3) EBIT margin = EBIT (operating result) in relation to total revenue (here: according to segment reporting).

The other signicant non-cash operating expenses and income re-

late to non-cash measurement eects from receivables, invento-

ries and provisions.

The performance of the segments and the Group is measured by

EBITDA (earnings before interest, tax, depreciation on property,

plant and equipment and right-of-use assets and amortization of

intangible assets and before income from the release of investment

grants).

The following table shows the reconciliation of earnings before in-

terest and tax (EBIT) to the earnings before interest, tax, deprecia-

tion and amortization (EBITDA) and to the earnings before tax

(EBT):

Reconciliation of earnings before interest and

tax (EBIT) to the earnings before interest, tax,

depreciation and amortization (EBITDA) and

to the earnings before tax (EBT)

EUR '000

2021 2020

Earnings before interest and tax (EBIT)  



Amortization of intangible assets and

depreciation of property, plant and equipment

and right-of-use assets

 

Income from the release of investment grants () ()

Earnings before interest, tax, depreciation and

amortization (EBITDA)  



Segment amortization and depreciation () ()

Consolidation () 

Income from the release of investment grants  

Earnings before interest and tax (EBIT)  



Financial result () ()



Earnings before tax (EBT)  

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans

and commitment fees from EBIT/EBITDA to the nancial result (see note 2).

The carrying amounts for segment reporting are based on the same

accounting policies applied to the IFRS consolidated nancial

statements.

47 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 19

Information on products and services

Revenue from external customers can be classied by products

and services as follows:

Revenue from external customers by products

and services (new segment structure) EUR '000

2021

Wood-based cellulosic bers 

Co-products of ber production 

Mechanical and plant engineering, engineering services and

others



Division Fiber 

Pulp 

Biorenery-products and energy 

Wood and other 

Division Pulp 

Others 

Revenue as per consolidated income statement 

Revenue from customers by products and

services (former segment structure)

EUR '000

2021 2020

Wood-based cellulosic bers  

Sodium sulfate and black liquor  

Pulp, wood, energy and other  

Segment Fibers  

Mechanical and plant engineering and

engineering services  

Segment Lenzing Technik  

Other and consolidation () ()

Revenue as per consolidated income

statement  

No single external customer is responsible for more than 10 percent

of external revenue.

Information on geographic regions

The following table provides a classication of revenue from exter-

nal customers by sales market by geographic area.

Revenue from external customers

by geographic regions EUR '000

2021 2020

Austria  

Europe (excl. Austria, incl. Turkey)  

Asia  

America  

Rest of the world  

Revenue as per consolidated income

statement  

Revenue is allocated according to the geographic region of the

customer.

The following table shows non-current assets (excluding nancial

instruments and tax assets; reconciled to the consolidated gures

for total non-current assets), total assets and acquisition of intangi-

ble assets, property, plant and equipment and biological assets

(CAPEX) by geographic region:

Information on non-current assets, total assets and CAPEX by geographic regions EUR '000

Non-current assets Total assets CAPEX

31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020

Austria      

Europe (excl. Austria, incl. Turkey)      

Asia      

America      

Subtotal      

Reconciliation to consolidated gures      

Consolidated total      

The above amounts cover all segments of the Lenzing Group. Ad-

ditional information on the segments is provided in the manage-

ment report of the Lenzing Group as at December 31, 2021.

48 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 20

Note 5. Revenue

The breakdown of revenue is shown in the segment report (see

note 4, in particular information on products and services as well

as geographic regions).

Revenue results exclusively from contracts with customers in ac-

cordance with IFRS 15 (Revenue from Contracts with Customers).

Revenue comprises all income generated by the typical business

activities of the Lenzing Group.

Income is recognized at a point in time, and thus when ownership

of the product has been transferred to the customer (i.e. with the

transfer of risks), the amount of income and the related costs can

be reliably determined and the economic benets from the trans-

action will probably ow to the Group.

Since all performance obligations in the Lenzing Group have a term

of a maximum of one year, the remaining performance obligations

are not disclosed.

Contract liabilities are presented under other liabilities and consist

of down payments received of EUR 14,526 thousand (December 31,

2020: EUR 20,918 thousand) and accruals for discounts and re-

bates of EUR 2,681 thousand (December 31, 2020: EUR 1,725 thou-

sand) (see note 34). The amount of EUR 21,637 thousand included

in contract liabilities as at December 31, 2020 has been recognized

as revenue in 2021 (2020: EUR 18,569 thousand).

Note 6. Functional costs

Cost of sales

The cost of sales mainly relates to the cost of materials and other

purchased manufacturing services, gains and losses from changes

in the fair value of biological assets, personnel expenses, depreci-

ation and amortization and other operating expenses, in particular

expenses for maintenance and repair, other third-party services

and expenses for waste disposal. The expenses for maintenance

and repair amount to EUR 35,049 thousand (2020:

EUR 28,987 thousand).

Selling expenses

Selling expenses mainly relate to personnel expenses and other op-

erating expenses, particularly expenses for outbound freight as

well as rental and leasing expenses.

Administrative expenses

Administrative expenses mainly relate to personnel expenses and

other operating expenses, in particular legal, audit and consulting

expenses.

Research and development expenses

Research and development expenses mainly relate to personnel

expenses and other operating expenses, in particular ling and de-

fense costs for patents and trademarks. Research and develop-

ment expenses include amortization of intangible assets, depreci-

ation of property, plant and equipment and of right-of-use assets

relating to leases amounting to EUR 948 thousand (2020:

EUR 687 thousand) and income from the release of investment

grants amounting to EUR 7 thousand (2020: EUR 0 thousand). In

the 2021 nancial year, research and development expenses in the

Lenzing Group according to the Frascati scheme of computation

in the amount of EUR 31,625 thousand (2020: EUR 34,818 thou-

sand) were incurred.

Note 7. Other operating income

Other operating income consists of the following:

Other operating income EUR '000

2021 2020

Income from green energy bonus  

Income from recharging of services and other

products

 

Income from the release of deferred income for

emission certicates and from subsidies

 

Rental income  

Foreign currency gains  

Insurance compensation  

Sundry  

Total  

The prior-year amounts have been adjusted to the cost of sales

method.

Note 8. Other operating expenses

Other operating expenses comprise the following:

Other operating expenses EUR '000

2021 2020

Foreign exchange loss  

Sundry  

Total  

The prior-year amounts have been adjusted to the cost of sales

method.

Notes on the Consolidated Income Statement

49 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 21

Note 9. Cost of material and other

purchased services

The cost of material and other purchased services comprises the

following:

Cost of material and other purchased services EUR '000

2021 2020

Material  

Other purchased services  

Total  

The cost of material comprises primarily the input factors con-

sumed, i.e. pulp (and wood for the internal production of pulp), key

chemicals (caustic soda, carbon disulde and sulfuric acid) and

merchandise. The cost of purchased services is related mainly to

the consumption of energy.

The cost of the raw material and supplies consumed during the

year is based on the weighted average cost method.

Note 10. Personnel expenses

The following table shows the composition of personnel expenses:

Personnel expenses EUR '000

2021 2020

Wages and salaries  



Expenses for severance payments and gratuity  



Retirement benet expenses  



Statutory social security expenses  

Other employee-related costs  

Total  

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans

and commitment fees from EBIT/EBITDA to the nancial result (see note 2).

In the 2021 nancial year, government grants of EUR 245 thousand

(2020: EUR 13,288 thousand) in connection with short-term work

assistance of Austria related to COVID-19 were oset against per-

sonnel expenses and recognized in prot or loss. The main condi-

tion for short-time working assistance is the temporary reduction

of working hours of certain employees. In the 2021 nancial year,

the Lenzing Group utilized such grants from January to March

(2020: May to December).

The number of employees in the Lenzing Group is as follows:

Number of employees (headcount)

2021 2020

Average  

As at 31/12  

The following table shows the number of employees in Lenzing AG

and the Austrian subsidiaries of the Lenzing Group:

Average number of employees in Austria (headcount)

2021 2020

Hourly workers  

Salaried employees  

Total  

Note 11. Amortization of intangible

assets, depreciation of property,

plant and equipment and right-of-

use assets

Amortization and depreciation include the following:

Amortization of intangible assets and

depreciation of property, plant and equipment

and right-of-use assets EUR '000

2021 2020

Amortization and depreciation  

Impairment  

Total  

Impairment tests of intangible assets, property,

plant and equipment and cash-generating units

(CGUs)

If there is an indication of impairment in accordance with IAS 36,

intangible assets and items of property, plant and equipment as

well as cash-generating units (CGUs) are tested for impairment. A

qualitative analysis is performed at the reporting dates for all con-

solidated nancial statements and interim consolidated nancial

statements to determine whether there are any indications of im-

pairment or any material year-on-year changes in impaired CGUs.

This analysis is based on criteria dened by the management of

Lenzing AG. Intangible assets, property, plant and equipment and

right-of-use assets allocated to a CGU that includes goodwill are

also tested during the annual impairment testing of goodwill. The

CGUs in the Lenzing Group represent, above all, the individual pro-

duction sites.

50 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 22

The Lenzing Group initially determines the recoverable amount

based on the applicable fair value less costs of disposal. The Man-

agement and Supervisory Boards approve the budget and the me-

dium-term plans for the next ve years. These plans are the starting

point for the cash ow projections on a post-tax basis to determine

the fair value less costs of disposal. Based on the assumptions used

in the previous year, a perpetual yield that includes a sustainable

long-term growth rate is applied after the detailed planning period.

The estimate for the sustainable long-term growth rate generally

equals half of the ination rate expected in the relevant country

during the next few years, as projected by an international eco-

nomic research agency. This value usually tends to oset general

ination. A growth-related retention of nancial surpluses in the

perpetual annuity is taken into consideration in the planning calcu-

lations. The planned/projected cash ows are discounted to their

present value with a discounted cash ow method. Fair value

measurement is classied in full as level 3 of the fair value hierarchy

because key input factors (in particular, cash ows) cannot be ob-

served on the market. The applied discount rate is calculated on an

individual basis using the capital asset pricing model (CAPM) and

represents a composite gure (weighted average cost of capital –

WACC) that combines the average interest rate for debt and the

anticipated return on equity employed. After-tax WACCs ranging

from 6.0 percent to 7.1 percent were used in 2021 (2020

5.4 percent to 7.8 percent).

The WACCs were, for the most part, determined on the basis of

externally available capital market data for comparable companies

(in particular, to determine the risk premium). The planning and

forecasts of free cash ows are based, above all, on internal and

external assumptions for the expected development of selling

prices and volumes (especially for bers and cellulose) and the re-

lated costs (in particular, raw materials like cellulose, wood and en-

ergy plus labor and taxes), including the expected market environ-

ment and market positioning. Other input factors include antici-

pated investments and the changes in working capital. These inter-

nal assumptions are based on past experience, current operating

results and the assessment of future developments. They are sup-

plemented by external market assumptions such as sector-specic

market studies and economic outlooks.

No impairments of CGUs in accordance with IAS 36 were recog-

nized in the 2021 and 2020 nancial years.

Against the backdrop of the COVID-19 crisis, the Lenzing Group

reviewed all assumptions that are crucial to the impairment tests in

accordance with the methods previously used. In the case of the

cash-generating units (CGUs), the eects of the COVID-19 crisis

were taken into consideration in the budgets required for the cash

ow forecasts and the medium-term plans.

Impairment test of the CGU Fiber Site China

The carrying amounts of the intangible assets, property, plant and

equipment and right-of-use assets of the CGU Fiber Site China im-

paired in previous years totaled EUR 57,081 thousand at Decem-

ber 31, 2021 (December 31, 2020: EUR 43,063). This amount in-

cludes accumulated impairment losses of EUR 13,586 thousand

(December 31, 2020: EUR 15,850 thousand) from the previous im-

pairment tests.

Due to an indication of impairment in accordance with IAS 36, the

recoverable amount of the CGU Fiber Site China for the consoli-

dated nancial statements 2021 was determined. The recoverable

amount showed sucient coverage of the carrying amounts. The

carrying amounts would increase (decrease) in particular if planned

EBITDA or the weighted average cost of capital (WACC) decreases

(increases). In the event of an increase (decrease) in planned

EBITDA by 1 percent, the recoverable amount determined would

increase (decrease) by EUR 3,953 thousand. If the weighted aver-

age cost of capital (WACC) decreases (increases) by 0.25 percent,

the recoverable amount will increase by EUR 7,375 thousand or de-

crease by EUR 6,860 thousand.

Impairment test of the CGU Fiber Site

Indonesia

Due to an indication of impairment in accordance with IAS 36, the

recoverable amount of the CGU Fiber Site Indonesia was deter-

mined. The recoverable amount showed sucient coverage of the

carrying amounts. The carrying amounts would increase (decrease)

in particular if planned EBITDA or the weighted average cost of

capital (WACC) decreases (increases). In the event of an increase

(decrease) in planned EBITDA by 1 percent, the recoverable

amount determined would increase (decrease) by EUR 6,539 thou-

sand. If the weighted average cost of capital (WACC) decreases

(increases) by 0.25 percent, the recoverable amount will increase

by EUR 14,112 thousand or decrease by EUR 13,175 thousand.

Impairment test of CGUs to which goodwill is

allocated

Goodwill was allocated to the following segments/cash-generat-

ing units (CGUs) as at the reporting date:

Goodwill by segment/CGU EUR '000

31/12/2021 31/12/2020

Segment Division Pulp

CGU Pulp Site Czech Republic  

Segment Divison Fiber

Other CGUs  

Total  

The recoverable amount of the largest CGU with goodwill in 2021

– the CGU Pulp Site Czech Republic – was determined on the ba-

sis of fair value less costs of disposal. The measurement of fair value

is classied in full under level 3 of the fair value hierarchy. The fol-

lowing individual assumptions from the most recent impairment

tests were used for annual testing:

Assumptions for impairment testing of the

largest CGU to which goodwill was allocated

2021 nancial

year

2020 nancial

year

CGU Pulp Site Czech Republic

Average annual operating margin in

planning period

 

Long-term growth rate of perpetual yield  

After-tax discount rate (WACC)  

51 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 23

The detailed planning period for the CGU Pulp Site Czech Republic

covers ve years. The average revenue growth during this period

equals 1.4 percent per year (2020: 3.2 percent per year).

The estimated fair value less costs of disposal of the CGU Pulp Site

Czech Republic exceeds the carrying amount by EUR 78,558 thou-

sand (2020: EUR 123,524 thousand). This estimate is considered

appropriate, but corrections may be required if there are changes

in the underlying assumptions or circumstances. The following ta-

ble shows a sensitivity analysis with hypothetical scenarios for the

key assumptions as well as the possible changes in value as at the

reporting date which, if they occurred, would result in the recover-

able amount equaling the carrying amount of the CGU plus good-

will.

A long-term growth rate of 1.1 percent to 1.3 percent (2020:

0.5 percent to 0.8 percent) was taken into account as perpetual

yield for the other CGUs with goodwill.

Sensitivity analysis of assumptions for impairment testing

Values relating to key assumptions

Change in values relating to key

assumptions for which the recoverable

amount would equal the carrying amount

CGU Pulp Site Czech Republic

Operating margin  minuspercentagepoints

After-tax discount rate (WACC)  pluspercentagepoints

Sensitivity analysis of assumptions for impairment testing (previous year)

Values relating to key assumptions

Change in values relating to key

assumptions for which the recoverable

amount would equal the carrying amount

CGU Pulp Site Czech Republic

Operating margin  minuspercentagepoints

After-tax discount rate (WACC)  pluspercentagepoints

Note 12. Auditor’s fees

The fees expensed for services provided by KPMG Austria GmbH,

Linz, comprise the following:

Auditors’ fees expensed EUR '000

2021 Lenzing AG Subsidiaries Tot al

Audit of the annual nancial

statements (incl. consolidated

nancial statements)   

Other assurance services   

Other services   

Total   

Auditors’ fees expensed (previous year) EUR '000

2020 Lenzing AG Subsidiaries Tota l

Audit of the annual nancial

statements (incl. consolidated

nancial statements)

  

Other assurance services   

Other services   

Total   

The fees for other assurance services consist chiey of fees for the

review of the consolidated half-year nancial statements and in the

2020 nancial year for the comfort letter related to a capital market

issue.

52 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 24

Note 13. Income from investments

accounted for using the equity

method

The result of EUR minus 3,541 thousand (2020: EUR 5,674 thou-

sand) corresponds to the Group’s share of the current earnings of

associates and joint ventures. The 2021 nancial year includes the

loss on the disposal of Hygiene Austria LP GmbH (HGA) in the

amount of EUR minus 4,536 thousand (2020: EUR 0 thousand) (see

note 22).

Note 14. Income from non-current

and current nancial assets

The income from non-current and current nancial assets consists

of the following items:

Income from non-current and current

nancial assets

EUR '000

2021 2020

Income from non-current and current nancial

assets

Interest income from bank balances, originated

loans and receivables

 

Interest income and income from the disposal of

debt instruments measured at fair value through

other comprehensive income

 

Income from dividends for equity instruments

measured at fair value through other

comprehensive income

 

Measurement of nancial assets measured at fair

value  

Net foreign currency gains from nancial assets  

 

Expenses from non-current and current

nancial assets

Measurement and loss from disposal of nancial

assets at amortized cost

() ()

Measurement and loss from the disposal of

nancial assets at fair value through prot or loss

() ()

Loss from the diposal of debt instruments

measured at fair value directly in equity

() 

Net foreign currency losses from nancial assets  ()

() ()

Total  ()

Note 15. Financing costs

Financing costs comprise the following:

Financing costs

2021 2020

Net foreign currency gains/losses from

nancial liabilities

() 

Interest expense for bonds and private

placements

() ()

Interest expense for bank loans, other interest

and similar expenses () ()



Capitalized borrowing costs for property, plant

and equipment and biological assets  



Total () ()



1) Reclassication of capitalized borrowing costs, net interest from dened benet plans

and commitment fees from EBIT/EBITDA to the nancial result (see note 2).

Note 16. Income tax expense

This item includes current income tax expense as well as in-

come/expense from deferred taxes (changes in deferred tax assets

and deferred tax liabilities) and comprises the following:

Income tax expense by source EUR '000

2021 2020

Current income tax expense

Austria  

Abroad  

 

Income/expense from deferred taxes  

Total  

Income tax expense by cause EUR '000

2021 2020

Current income tax expense

Tax expense for current year  

Reduction due to the use of tax losses () ()

Adjustment for prior-period income tax  

 

Income/expense from deferred taxes

Recognition and reversal of temporary

dierences  

Eects of changes in tax rates  

Change in capitalized loss carryforwards  ()

Eects of previously unrecognized temporary

dierences from prior periods  ()

Changes in valuation adjustment to deferred tax

assets (excl. loss carryforwards) () ()

 

Total  

53 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 25

The item “Change in capitalized loss carryforwards” relates to the

utilization of loss carryforwards in the amount of EUR 3,271 thou-

sand (2020: EUR 61 thousand) and an adjustment to deferred tax

assets for loss carryforwards not yet utilized amounting to

EUR 1,253 thousand (2020: EUR minus 6,785 thousand).

The reconciliation of calculated income tax expense based on the

Austrian corporate tax rate of 25 percent (December 31, 2020:

25 percent) to eective income tax expense is shown in the follow-

ing table:

Tax reconciliation EUR '000

2021 2020

Earnings before tax (EBT)  

Calculated income tax expense

(25% of earnings before tax)  

Deductible distribution of hybrid coupon () 

Tax-free income and tax allowances

(particularly research allowance) () ()

Non-deductible expenses, withholding taxes and

similar permanent dierences

 

Income from investments accounted for using

the equity method

 ()

Eect of dierent tax rates () ()

Changes in tax rates  

Taxes from prior periods  

Exchange rate dierences resulting from the

translation of deferred tax items from local into

functional currency

 

Change in unrecognized deferred tax assets

from loss carryforwards, tax credits and other

temporary dierences  

Other () 

Eective income tax expense  

As in the previous year, the ratio of eective income tax expense

to earnings before tax is disproportionately high in the 2021 nan-

cial year. As in the previous year, the Group reports a relatively high

level of reconciliation items arising from write-downs on tax assets

(in particular from non-capitalized start-up losses) and from the

translation of tax items from local to functional currency (in partic-

ular Indonesia, Brazil and Thailand). In addition, in the 2021 nancial

year a distribution to hybrid capital holders was realized that is tax

deductible. For the item “Taxes from prior periods,” see the notes

relating to write-downs in note 31.

The item “Changes in tax rates” mainly comprises a statutory tax

rate increase in the UK. The corporate income tax rate in the UK

will increase from 19 percent to 25 percent eective April 1, 2023.

This resulted in an expense of EUR 941 thousand in the 2021 nan-

cial year from the measurement of the UK Group companies’ de-

ferred tax assets and deferred tax liabilities.

The item “taxes from prior periods” includes a tax credit of

EUR 747 thousand (2020: EUR 24 thousand) from the tax group

with B&C Group (also see note 40).

Lenzing AG and the Austrian subsidiaries of the Lenzing Group are

subject to an income tax rate of 25 percent (December 31, 2020:

25 percent). The income tax rates for foreign companies range

from 11 percent to 34 percent (December 31, 2020: from 11 percent

to 34 percent).

Note 17. Earnings per share

Earnings per share are calculated as follows:

Earnings per share EUR '000

2021 2020

Net prot for the year attributable to

shareholders of Lenzing AG used in the

calculation of earnings per share  

Weighted average number of shares  

EUR EUR

Diluted = basic  

In the calculation of earnings per share, the share of the net prot

for the year earmarked for hybrid capital holders of

EUR 28,750 thousand (2020: EUR 1,890 thousand) was deducted

from net prot for the year.

54 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 26

Note 18. Intangible assets

Development

Intangible assets developed as follows:

Development of intangible assets EUR '000

2021 Goodwill

Concessions, industrial

property rights,

licenses and similar

rights

Internally generated

intangible assets

Total

Cost

As at 01/01/2021    

Currency translation adjustment    

Addition    

Disposals  ()  ()

As at 31/12/2021    

Accumulated amortization

As at 01/01/2021 () () () ()

Currency translation adjustment () ()  ()

Amortization  () () ()

Disposals    

As at 31/12/2021 () () () ()

Carrying amount as at 01/01/2021    

Carrying amount as at 31/12/2021    

Notes to the Consolidated Statement of Financial Position,

the Consolidated Statement of Comprehensive Income and

the Consolidated Statement of Changes in Equity

55 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 27

Development of intangible assets (previous year) EUR '000

2020 Goodwill

Concessions, industrial

property rights,

licenses and similar

rights

Internally generated

intangible assets

Total

Cost

As at 01/01/2020    

Currency translation adjustment () ()  ()

Change in the scope of consolidation and disposal of other

business areas

   

Addition    

Disposals  () () ()

As at 31/12/2020    

Accumulated amortization

As at 01/01/2020 () () () ()

Currency translation adjustment    

Amortization  () () ()

Disposals    

As at 31/12/2020 () () () ()

Carrying amount as at 01/01/2020    

Carrying amount as at 31/12/2020    

Additions in the 2021 nancial year include purchased intangible

assets of EUR 2,495 thousand (2020: EUR 1,755 thousand) and in-

ternally generated intangible assets of EUR 6,182 thousand (2020:

EUR 3,556 thousand) (mainly process and product developments).

Development costs are recognized as intangible assets if the spe-

cic requirements pursuant to IAS 38 are met, in particular, as to

whether future economic benets can be generated.

The revaluation option was not exercised. Amortization is calcu-

lated according to the straight line method based on the estimated

useful lives. The estimated useful lives of the major asset classes

are as follows:

Useful lives for intangible assets

Years

Software/computer programs to

Licenses and other intangible assets

Purchased to

Internally generated to

All items of intangible assets are tested for impairment in accord-

ance with IAS 36 if there are any indications that these assets may

be impaired (see note 11).

56 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 28

Note 19. Property, plant and equipment

Development

Property, plant and equipment developed as follows:

Development of property, plant and equipment EUR '000

2021 Land and buildings

Technical equipment and

machinery, factory and

oce equipment

Down payments and

assets under construction

Total

Cost

As at 01/01/2021    

Currency translation adjustment    

Addition   





Disposals () ()  ()

Reclassications   () 

As at 31/12/2021    

Accumulated depreciation

As at 01/01/2021 () () () ()

Currency translation adjustment () () () ()

Depreciation () ()  ()

Disposals    

As at 31/12/2021 () () () ()

Carrying amount as at 01/01/2021    

Carrying amount as at 31/12/2021    

1) Additions include a decrease in advance payments of EUR 106,538 thousand.

57 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 29

Development of property, plant and equipment (previous year) EUR '000

2020 Land and buildings

Technical equipment and

machinery, factory and

oce equipment

Down payments and

assets under construction

Total

Cost

As at 01/01/2020

   

Currency translation adjustment () () () ()

Addition   





Disposals () () () ()

Reclassications   () 

As at 31/12/2020

   

Accumulated depreciation

As at 01/01/2020

() () () ()

Currency translation adjustment    

Depreciation () ()  ()

Disposals    

As at 31/12/2020

() () () ()

Carrying amount as at 01/01/2020    

Carrying amount as at 31/12/2020    

1) The additions include an increase in advance payments of EUR 243,258 thousand.

2) The opening balances were adjusted for cost and accumulated depreciation.

58 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 30

Property, plant and equipment are measured at cost, including

capitalized borrowing costs, less accumulated depreciation and

accumulated impairment losses.

Depreciation is calculated according to the straight-line method

based on the estimated useful lives. The estimated useful lives of

the major asset classes are as follows:

Useful lives for property, plant and equipment

Years

Land use rights to

Buildings to

Fiber production lines to

Energy production plants to

Other machinery to

Vehicles to

Oce equipment and other xtures and ttings to

IT hardware to

All items of property, plant and equipment are tested for impair-

ment in accordance with IAS 36 if there are any indications that

these assets may be impaired (see note 11).

Operating leases as a lessor

Operating leases are in place for land and buildings with acquisition

cost of EUR 38,224 thousand as at December 31, 2021 (Decem-

ber 31, 2020 EUR 40,401 thousand). The carrying amount of this

land and buildings is EUR 8,282 thousand as at December 31, 2021

(December 31, 2020 EUR 10,305 thousand). Depreciation of

EUR 692 thousand was recognized on these assets in the 2021 -

nancial year (2020: EUR 920 thousand). For further details on rental

income from operating leases see note 21.

Capitalization of borrowing costs

Borrowing costs of EUR 21,166 thousand for property, plant and

equipment were capitalized in 2021 (2020: EUR 3,981 thousand).

The weighted average interest rate equaled 2.23 percent (2020:

1.1 percent).

The Lenzing Group denes qualifying assets as construction pro-

jects or other assets that require at least twelve months to be ready

for their intended use or sale. The capitalization entries are rec-

orded under “nancing costs” and the respective asset account. All

other borrowing costs are expenses in the period incurred and re-

ported under nancial result.

Note 20. Biological assets

Biological assets comprise standing trees of a plantation in Minas

Gerais, Brazil, which are used as a raw material for pulp production.

In accordance with IAS 41 (Agriculture), biological assets are pre-

sented at fair value in the consolidated statement of nancial posi-

tion. The plantation is recognized at level 3 of the fair value less

estimated costs to sell at the harvest. It is assumed that fair values

can be measured. The measurement of biological assets is moni-

tored and reviewed by the Lenzing Group. The necessary market

data are validated on the basis of the dual control principle.

The measurement is based on a discounted cash ow model on

the basis of sustainable forest management plans, industry bench-

marks for wood prices and delivery costs and taking into account

the growth potential. The annual harvest from the projected tree

growth is multiplied by wood prices, and the forestry and harvest-

ing costs are deducted. The fair value of the plantation is measured

as the present value of the harvest from one growth cycle on the

basis of the productive forest area, taking into account environ-

mental restrictions and other reservations. In particular, the calcu-

lated fair value would increase (decrease) if both the timber price

and the timber volume were to increase (decrease). The calculated

fair value would decrease (increase) if the discount rate were to in-

crease (decrease).

Young standing timber less than one year old is considered an im-

mature asset and is recognized at cost. When harvested, biological

assets are transferred to the item inventories of the consolidated

statement of nancial position. Changes in the fair value of hedging

instruments in relation to the foreign exchange risk are recognized

in the income statement under cost of sales.

As at December 31, 2021, the plantation comprised approximately

40,115 hectares of eucalypt wood (December 31, 2020: 39,892

hectares) and 975 hectares of pine wood (December 31, 2020:

1,001 hectares). The wood is up to 13 years (December 31, 2020: 12

years) old. Wood amounting to EUR 2,163 thousand (December 31,

2020: EUR 2,486 thousand) is less than one year old and therefore

considered an immature asset.

Biological assets developed as follows:

Development of biological assets EUR '000

2021 2020

As at 01/01  

Addition  

Acquisition  

Sales () ()

Capitalized production costs  

Change in the fair value () ()

Currency translation adjustment  ()

Other changes () ()

As at 31/12  

59 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 31

Gains and losses from the change in the fair value of biological as-

sets of EUR 2,258 thousand (December 31, 2020 EUR minus

10,334 thousand) consisted of the regular remeasurement of EUR

minus 2,001 thousand (December 31, 2020: EUR minus

12,943 thousand) and changes in the value of hedges related to the

exchange rate risk of EUR 4,259 thousand (December 31, 2020:

EUR 2,608 thousand). These are included in the cost of sales.

In October 2020, a re occurred on the plantation. The re resulted

in a reduction of the selling price for the damaged wood. The de-

valuation taking into account insurance cover amounts to

EUR 3,192 thousand and is included in the change in fair value.

The following assumptions were made:

Assumptions of level 3 input

factors for biological assets

31/12/2021 31/12/2020

Market price EUR/m

 

Discount rate  

Wood volume m³ m



A change in key input factors which cannot be observed on the

market would have the following eects on the measurement of

biological assets:

Sensitivity analysis of level 3 input

factors for biological assets as at

31/12/2021 EUR '000

Increase Decrease

Change in the market price (+/- 1%)  ()

Discount rate (+/- 1%) () 

Wood volume (+/- 5%)  ()

Sensitivity analysis of level 3 input

factors for biological assets as at

31/12/2020 (previous year)

EUR '000

Increase Decrease

Change in the market price (+/- 1%)  ()

Discount rate (+/- 1%) () 

Wood volume (+/- 5%)  ()

Note 21. Right-of-use assets

The Lenzing Group as the lessee

The Lenzing Group has obligations from rental and lease agree-

ments for property, plant and equipment, which are recognized as

right-of-use-assets in the consolidated statement of nancial posi-

tion. The corresponding lease liabilities are reported as part of -

nancial liabilities (see note 30).

The following table shows the development of right-of-use assets

classied by type of asset:

Development of right-of-use assets EUR '000

2021

Land and

buildings

Technical

equipment

and

machinery,

factory and

oce

equipment

Total

Carrying amount as at 01/01   

Addition   

Disposals ()  ()

Depreciation scal year () () ()

Currency translation adjustment   

Carrying amount as at 31/12   

Development of right-of-use assets EUR '000

2020

Land and

buildings

Technical

equipment

and

machinery,

factory and

oce

equipment

Total

Carrying amount as at 01/01   

Addition   

Disposals () () ()

Depreciation scal year () () ()

Currency translation adjustment () () ()

Carrying amount as at 31/12   

In the 2021 nancial year, right-of-use assets relating to leases

amounting to EUR 4,014 thousand for building rentals,

EUR 2,927 thousand for wagons and EUR 2,217 thousand from the

index increase for the land use right were recognized.

Right-of-use assets of EUR 44,610 thousand were recognized in

the 2020 nancial year for the land on which the biological assets

are located.

The terms and conditions of the main leases can be summarized as

follows:

●

Land use rights: The biological assets (see note 20) are lo-

cated on land which is not owned by the Lenzing Group. Land

use rights are in place for this land. The lease has a term of 30

years, with an option to extend the lease by 19 years after 30

years. This extension option was not taken into account in es-

timating the expected term of the lease because the use of the

60 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 32

biological assets in 30 years is not suciently certain from to-

day’s perspective. Price adjustment clauses exist.

●

Oce and storage premises: The leases have a term of up to

ve years and some contracts have an indenite term. Ordi-

nary useful lives were applied to oce and storage premises

with indenite useful lives where economic exit barriers exist.

These leases do not include an option to purchase the oce

and storage premises at the end of the contract term. Some of

the leases include extension options and price adjustment

clauses.

●

Rail cars: The leases have a term of up to ten years and can be

canceled after a minimum period. Some of the leases have

price adjustment clauses.

●

Wastewater treatment plant: The Lenzing Group has con-

cluded nance leases for an industrial primary clarier and re-

lated expansion investments. The ownership of the plant, in-

cluding the land, can be transferred to Lenzing AG after the

agreements expire in exchange for the payment of a transfer

fee. This lease has a term of up to 16 years.

Termination and extension options are taken into account when es-

timating the expected term of the leases if it is suciently certain

that they will or will not be exercised. The Lenzing Group estimates

that possible future cash outows from extension options which

were not taken into account in the measurement of the lease liabil-

ity could result in an increase in the lease liability and the related

future cash outows by EUR 1,286 thousand (December 31, 2020:

EUR 1,129 thousand).

The following expenses relating to leases were recognized in the

consolidated income statement in the 2021 nancial year.

Amounts recognized in prot or loss EUR '000

2021 2020

Expenses relating to short-term leases  

Expenses relating to variable leases  

Expenses relating to leases of low-value assets  

Non-lease components  

























Interest on lease liabilities = Financing costs  

Short-term leases are leases with a term of less than one year.

Where contracts have no term, leases are considered short-term

leases if both parties have a right to terminate the contract, which

can be exercised without the consent of the counterparty and no

termination penalties or economic barriers exist. Leases for which

only variable lease payments that are not coupled to an index or

(interest) rate have been agreed are not capitalized as right-of-use

assets.

Expenses relating to variable leases mainly include variable rental

payments for warehouses based on monthly storage quantities.

Cash outows for leases total EUR 28,592 thousand (2020:

EUR 30,216 thousand). They include expenses relating to short-

term and variable leases and to leases of low-value assets.

Expenses relating to the right-of-use assets and nancing costs are

fully cash-eective and included in cash ow from operating activ-

ities. The cash ows incurred in connection with the repayment of

lease liabilities are explained in note 35.

All items of right-of-use assets are tested for impairment in accord-

ance with IAS 36 if there are any indications that these assets may

be impaired (see note 11).

The Lenzing Group as the lessor

The future undiscounted minimum lease payments during the non-

cancellable term of the leases relate primarily to land and buildings

and are as follows, classied by year:

Undiscounted annual minimum lease

payments as lessor

EUR

'000

31/12/2021 31/12/2020

In the following year  

In the following 1-2 years  

In the following 2-3 years  

In the following 3-4 years  

In the following 4-5 years  

Thereafter  

Total  

The most important lease involves land on which a recycling plant

is operated. The lease payments are indexed. The lease was con-

cluded for an indenite term and can be canceled at the earliest as

at December 31, 2029, subject to a six-year notice period.

Rental income for the 2021 nancial year is shown in note 7.

The Lenzing Group classies these leases as operating leases since

the main risks and opportunities associated with ownership are re-

tained.

61 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 33

Note 22. Investments accounted for

using the equity method

Investments accounted for using the equity method comprise the

following:

Carrying amounts of investments accounted for

using the equity method EUR '000

31/12/2021 31/12/2020

EQUI-Fibres Beteiligungsgesellschaft mbH (EFB)  

Hygiene Austria LP GmbH (HGA)  

LD Florestal S.A. (LDF)  

Other associates  

Other joint ventures  

Total  

The major investments accounted for using the equity method in-

clude, in particular, the investments in EQUI-Fibres Beteiligungs-

gesellschaft mbH (EFB), Kelheim, Germany, which is assigned to

the Segment Division Fiber, and LD Florestal S.A. (LDF), Sao Paulo,

Brazil, which is assigned to the Segment Division Pulp. For the stra-

tegic importance of the other investments accounted for using the

equity method and their relationship with the Lenzing Group see

note 40.

Investments accounted for using the equity method developed as follows:

Development of the carrying amounts of investments accounted for using the equity method EUR '000

2021 EFB

Other

associates

HGA LDF

Other joint

ventures

Total

As at 01/01      

Capital injection      

Share in prot or loss of investments accounted for using the equity

method

   ()  

Other comprehensive income – remeasurement of dened benet

liability and other

     

Other comprehensive income – foreign currency translation dierences

arising during the year    ()  

Disposal of carrying amount   ()   ()

Distributions () ()    ()

As at 31/12      

Development of the carrying amounts of investments accounted for using the equity method

(previous year)

EUR '000

2020 EFB

Other

associates

HGA LDF

Other joint

ventures

Total

As at 01/01      

Capital injection      

Share in prot or loss of investments accounted for using the equity

method

     

Other comprehensive income – remeasurement of dened benet

liability and other

()     ()

Other comprehensive income – foreign currency translation dierences

arising during the year

 ()  () () ()

Disposal of carrying amount      

Distributions  ()    ()

As at 31/12      

In March 2021, the interest in the joint venture Hygiene Austria LP

GmbH, Wiener Neudorf, Austria, which was previously accounted

for using the equity method, was divested. The disposal led to the

deconsolidation of the interest. The divestiture incurred a loss of

EUR 4,536 thousand. A cash purchase price of EUR 1 was paid. Ad-

ditionally, a long-term performance-related purchase price com-

ponent was agreed (earn-out). This earn-out depends on the com-

pany’s future protability and was set at EUR 0 thousand as at De-

cember 31, 2021. The loan granted to Hygiene Austria LP GmbH in

the 2020 nancial year was waived as part of the divestiture and a

loss of EUR 2,000 thousand was recognized (see note 40). The

Lenzing Group held 50.1 percent of the capital and voting rights of

HGA as at December 31, 2020. The main activity of HGA, which is

not publicly listed, was the production and sale of protective masks,

in particular mouth-nose protective masks as well as FFP2 masks.

62 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 34

In the 2021 nancial year, an impairment of EUR 0 thousand (2020:

EUR 1,384 thousand) was recognized on the outstanding purchase

price receivables and non-current loans due from the buyer of EFB

(and its subsidiaries) (see note 39, credit risk). The carrying

amounts of the outstanding purchase price receivables and non-

current loans due from the buyer of EFB (and its subsidiaries) total

EUR 10,678 thousand as at December 31, 2021 (December 31,

2020: EUR 10,678 thousand) and are reported under nancial as-

sets. They carry standard bank interest rates.

The Lenzing Group holds a lien on the remaining shares of EFB. In

addition, there is a non-current earnings-related component of the

purchase price, which is dependent on the company’s future busi-

ness development and is reported under other non-current assets

at the discounted present value of EUR 4,087 thousand as at De-

cember 31, 2021 (December 31, 2020: EUR 4,087). Moreover, the

buyer was granted a credit line of up to EUR 5,379 (December 31,

2020: EUR 8,622 thousand), which can be utilized up to Decem-

ber 31, 2025 at the latest in the event of adverse changes in the

framework conditions for EFB on the market. The credit line had

not been used as at December 31, 2021 and in the previous year as

at December 31, 2020.

The Lenzing Group held 20 percent of capital and voting rights as

at December 31, 2021 (December 31, 2020: 20 percent). The core

business of EFB, which is not publicly listed, is the production and

marketing of wood-based cellulosic bers. The relations between

the Lenzing Group and this company are described in note 40.

The following table provides summarized nancial information on

EFB in accordance with IFRS (100 percent):

Summarized nancial information on EFB EUR '000

31/12/2021 31/12/2020

Non-current assets  

Current assets  

Equity  

Non-current liabilities  

Current liabilities  

2021 2020

Revenue  

Earnings before tax (EBT)  

Total comprehensive income  

Thereof net prot for the year  

Thereof other comprehensive income  ()

The reconciliation of equity to the carrying amount of the invest-

ment in EFB is as follows:

Reconciliation of equity to carrying amount of

the investment in EFB

EUR '000

31/12/2021 31/12/2020

Equity  

Thereof:

Group’s interest (20%; previous year: 20%)  

Consolidation and other eects () ()

Impairment () ()

Carrying amount  

The Lenzing Group held 50 percent of the capital and voting rights

in LDF as at December 31, 2021 (December 31, 2020: 50 percent).

The core business of LDF, which is not publicly listed, is granting

rights of use. The relations between the Lenzing Group and this

company are described in note 40.

The following table provides summarized nancial information on

LDF in accordance with IFRS (100 percent):

Summarized nancial information on LDF EUR '000

31/12/2021 31/12/2020

Non-current assets  

Current assets  

Equity  

Non-current liabilities  

Current liabilities  

2021 2020

Revenue

 

Earnings before tax (EBT)  

Total comprehensive income  

Thereof net prot for the year  

Thereof other comprehensive income  

1) LDF's revenue consists of rental income in particular.

The reconciliation of equity to the carrying amount of the invest-

ment in LDF is as follows:

Reconciliation of equity to carrying amount of

the investment in LDF

EUR '000

31/12/2021 31/12/2020

Equity  

Thereof:

Group's interest (50%; previous year: 50%)  

Carrying amount  

The investments in associates represent shares in companies in

which the Lenzing Group can exert signicant inuence over nan-

cial and operating policies. Joint ventures are joint arrangements

managed by the Lenzing Group together with one or more partners,

whereby the Lenzing Group has rights to the net assets of the ar-

rangement.

63 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 35

Note 23. Financial assets

Non-current nancial assets comprise the following:

Non-current nancial assets EUR '000

31/12/2021 31/12/2020

Non-current securities  

Other equity investments  

Originated loans  

Total  

Non-current securities are classied as follows:

Non-current securities by asset class EUR '000

Market

value

31/12/2021

Market value

31/12/2020

Government bonds  

Other securities and book-entry securities

(primarily shares)

 

Total  

The Lenzing Group has designated equity instruments of a fair

value of EUR 19,899 thousand as measured at “fair value through

other comprehensive income” as at December 31, 2021 (Decem-

ber 31, 2020: EUR 24,753 thousand). Non-current securities meas-

ured at fair value through other comprehensive income and other

equity investments include shares in companies in which a share of

less than 20 percent is held. The option to recognize these equity

instruments at fair value through other comprehensive income was

exercised based on the intent to hold these instruments in the long

term. The other equity investments as at December 31, 2021 con-

sist primarily of the investment in LP Beteiligungs & Management

GmbH, Lenzing. Non-current securities primarily consist of Ober-

bank ordinary shares amounting to EUR 12,802 thousand (Decem-

ber 31, 2020: EUR 11,821 thousand). In the 2021 nancial year there

was a dividend payout of other investments and other securities,

which amounted to EUR 960 thousand (December 31, 2020:

EUR 829 thousand).

Current nancial assets include the shares held in Spinnova OY,

Jyväskylä, Finland, amounting to EUR 32.232 thousand, which

were reclassied from other equity investments to current securi-

ties in the 2021 nancial year (see note 37).

Note 24. Other non-current assets

Other non-current assets are classied as follows:

Other non-current assets EUR '000

31/12/2021 31/12/2020

Other non-current nancial assets (particularly

from derivatives and other nancial receivables)  

Other non-current non-nancial assets

(particularly from other taxes)  

Total  

Note 25. Inventories

Inventories include the following components:

Inventories EUR '000

31/12/2021 31/12/2020

Raw materials and supplies  

Work in progress  

Finished goods and merchandise  

Advance payments made  

Total  

Raw materials and supplies consist primarily of wood for pulp pro-

duction, pulp and chemicals for cellulosic ber production and var-

ious incidentals. The cost of raw materials and supplies is calcu-

lated using the weighted average cost method. Finished goods and

work in progress include cellulosic bers, sodium sulfate, acetic

acid and furfural.

Write-downs totaling EUR 16,841 thousand were recognized to in-

ventories in 2021 (2020: EUR 8,689 thousand). The carrying

amount of inventories measured at their net realizable value

equaled EUR 186,751 thousand (December 31, 2020:

EUR 118,706 thousand). Expenses for inventories, which are in-

cluded in the cost of material totaled EUR 1,017,914 thousand (2020:

EUR 770,254 thousand).

64 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 36

Note 26. Trade receivables

Trade receivables comprise the following:

Trade receivables EUR '000

31/12/2021 31/12/2020

Trade receivables (gross)  

Bad debt provisions () ()

Total  

All trade receivables are classied as current assets. Additional in-

formation on trade receivables is provided in note 37 (“Factoring“)

and note 39 (“Credit risk“).

Note 27. Other current assets

Other current assets comprise the following:

Other current assets EUR '000

31/12/2021 31/12/2020

Other current nancial assets

Derivatives not yet settled (open positions)  

Recharging of maintenance services  

Receivables from grant commitments  

Sundry  

Total  

Other current non-nancial assets

Receivables from other taxes and duties  

Advance payments made  

Emission certicates  

Prepaid expenses  

Sundry  

Total  

Total  

Note 28. Equity

Share capital and capital reserves

The share capital of Lenzing AG totaled EUR 27,574,071.43 as at De-

cember 31, 2021 (December 31, 2020: EUR 27,574,071.43) and is di-

vided into 26,550,000 zero par value shares (December 31, 2020:

26,550,000 shares). The proportion of share capital attributable to

one share equals roughly EUR 1.04. Each ordinary share represents

an equal interest in capital and conveys the same rights and obliga-

tions, above all the right to a resolved dividend and the right to vote

at the Annual General Meeting. The issue price of the shares is fully

paid in. No other classes of shares have been issued.

The Annual General Meeting on April 12, 2018 authorized the Man-

aging Board – while at the same time canceling the resolutions re-

garding this matter of the Annual General Meeting of April 22, 2015

– subject to the approval of the Supervisory Board, to increase

share capital by up to EUR 13,787,034.68 through the issue of up to

13,274,999 zero par value shares (“authorized capital”) – also in

tranches – in exchange for cash and/or contributions in kind, within

ve years from entry in the commercial register. The proportion of

authorized capital attributable to one share equals roughly

EUR 1.04. This authorized capital was recorded in the commercial

In addition, a resolution of the Annual General Meeting on April 12,

2018 authorized the Managing Board – while at the same time can-

celing the resolutions regarding this matter of the Annual General

Meeting of April 22, 2015 – to issue, subject to the approval of the

Supervisory Board, convertible bonds by April 12, 2023 in one or

several tranches that grant or provide for the subscription or con-

version right or a subscription or conversion obligation for up to

13,274,999 shares of the company (“contingent capital”). They can

be serviced through the contingent capital and/or treasury shares.

The Annual General Meeting on June 18, 2020 authorized the

Managing Board – while at the same time canceling the resolutions

regarding this matter of the Annual General Meeting of April 12,

2018 and subject to the approval of the Supervisory Board – to pur-

chase treasury shares of the company for a period of 30 months

starting on the day of the resolution. The treasury shares acquired

by the company may not exceed 10 percent of the company’s share

capital. The equivalent to be paid for the repurchase must be within

a range of +/-25 percent of the weighted average closing price of

the last 20 stock exchange days prior to the start of the corre-

sponding repurchasing program of the Lenzing share. The Manag-

ing Board was also authorized to withdraw repurchased treasury

shares without any further resolution by the Annual General Meet-

ing subject to the approval of the Supervisory Board (including the

authorization of the Supervisory Board to adopt changes to the ar-

ticles of association resulting from withdrawing the shares), or to

resell them and to determine the conditions of sale. This authoriza-

tion can be exercised in full, in part and in pursuit of one or several

objectives by the company, by a subsidiary (Section 189a no. 7 of

the Austrian Commercial Code) or by third parties for the com-

pany’s account. In addition, the Management was authorized for a

period of ve years from the date of the resolution to adopt the sale

of treasury shares in any manner permitted by law other than

through the stock exchange or public oer, also excluding share-

holders’ repurchasing rights (subscription rights), and to determine

the conditions of sale.

65 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 37

The Managing Board did not utilize the authorizations in place on

or up to December 31, 2021 to increase share capital, issue con-

vertible bonds or repurchase treasury shares during the 2021 nan-

cial year.

The capital reserves represent appropriated reserves of Len-

zing AG that may only be used to oset an accumulated loss by

Lenzing AG. These reserves were created from the inow of funds

received by Lenzing AG from shareholders in excess of share cap-

ital.

Other reserves

Other reserves include all accumulated other comprehensive in-

come and consist of the foreign currency translation reserve, the

reserve for nancial assets measured at fair value through other

comprehensive income, the hedging reserve and actuarial

gains/losses.

The amounts attributable to the components of other comprehensive income in 2021 and 2020 include the following:

Other comprehensive income EUR '000

2021 2020

Before tax Tax eect After tax Before tax Tax eect After tax

Consolidated subsidiaries  ()  ()  ()

Investments accounted for using the equity method    ()  ()

Foreign currency translation reserve  ()  ()  ()

Financial assets measured at fair value through other

comprehensive income

 ()  ()  ()

Consolidated subsidiaries ()  () ()  ()

Hedging reserve ()  () ()  ()

Consolidated subsidiaries ()  ()  () 

Investments accounted for using the equity method    ()  ()

Actuarial gains/losses ()  ()  () 

Total  ()  ()  ()

The hedging reserve developed as follows:

Changes in the hedging reserve EUR '000

2021 2020

Gains/losses recognized in the reporting

period from the valuation of cash ow hedges

From forward foreign exchange contracts () ()

From other derivatives  ()

() ()

Reclassication to prot or loss of amounts

relating to cash ow hedges

From forward foreign exchange contracts  

From other derivatives  ()

 

Total () ()

The fair value changes recognized in the reporting period from the

valuation of cash ow hedges are mostly related to the hedging of

foreign currency transactions for the construction of assets and the

hedging of revenue in foreign currencies.

The above amounts from the reclassication to prot or loss of

cash ow hedges from forward foreign exchange contracts are re-

ported primarily under revenue as part of earnings before interest

and tax (EBIT). The above amounts from the reclassication to

prot or loss of cash ow hedges from other derivatives are re-

ported under nancial result.

66 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 38

Retained earnings

Retained earnings comprise the following:

Retained earnings EUR '000

31/12/2021 31/12/2020

Unappropriated revenue reserves of Lenzing AG

under Austrian law (Austrian Commercial Code –

öUGB)

 

Accumulated prots of Lenzing AG under

Austrian law (Austrian Commercial Code –

öUGB)

 

Retained earnings of the subsidiaries, including

the eect of adjusting the nancial statements of

Lenzing AG and its subsidiaries from local

regulations to IFRS

 

Total (excl. other reserves)  

The unappropriated revenue reserves of Lenzing AG can be re-

leased at any time and distributed to shareholders as part of accu-

mulated prots. Austrian law only permits the distribution of divi-

dends from accumulated prots as stated in the approved annual

nancial statements of the parent company prepared in accord-

ance with the Austrian Commercial Code.

The following dividends were approved by the Annual General

Meeting and paid to the shareholders of Lenzing AG:

Dividends of Lenzing AG resolved and paid

Total

Number

of shares

Dividend

per share

EUR '000 EUR

Dividend for the nancial year

2020 resolved at the Annual

General Meeting on April 14, 2021

  

Dividend for the nancial year

2019 resolved at the Annual

General Meeting on June 18,

2020

  

1) The proposed dividend payout of EUR 1.00 as published in the consolidated nan-

cial statements 2019 was reevaluated due to the COVID-19 crisis.

The Managing Board proposes the following use of accumulated

prots for 2021 as stated in the annual nancial statements of Len-

zing AG, which were prepared in accordance with the Austrian

Commercial Code:

Proposal on the appropriation of accumulated

prots for 2021

EUR '000

Lenzing AG closed the 2021 nancial year with prot under

Austrian law (öUGB) of



the allocation to (unappropriated) revenue reserves of ()

results in accumulated prot of 

The Managing Board proposes the following appropriation of

the accumulated prot:

Distribution of a EUR 4.35 dividend per share on eligible share

capital of EUR 27,574,071.43 or 26,550,000 shares 

Amount carried forward to new account 

The dividend shown in the above proposal is subject to approval

by the shareholders at the Annual General Meeting and is therefore

still included in equity as at the reporting date.

Hybrid capital

In December 2020, a subordinated perpetual bond (hybrid capital)

with a total volume of EUR 500,000 thousand and a coupon of 5.75

percent was issued. The hybrid capital has a perpetual tenor and

can be called or re-deemed by Lenzing AG on December 7, 2025

at the earliest. Investors have no call rights. If the hybrid capital is

not called, the hybrid capital will carry a changed interest rate from

December 8, 2025 (then applicable 5-year swap rate plus a margin

of 11.208 percent).

Interest will be due and payable in arrears on December 7 of each

year unless Lenzing AG decides to defer such interest payment.

Outstanding deferred interest must be paid under certain circum-

stances, in particular when the Annual General Meeting of Len-

zing AG resolves to pay a dividend.

The bond meets the criteria for equity pursuant to IAS 32 (Financial

Instruments: Presentation). Accordingly, coupons are presented as

part of appropriation of prots in the consolidated income state-

ment. The hybrid capital led to directly attributable transaction

costs after tax of EUR 3,418 thousand, which were oset against

equity.

Non-controlling interests

Non-controlling interests represent the investments held by third

parties in consolidated group companies. The group companies

with non-controlling interests are listed in note 43 under “Consoli-

dated companies”. These are companies in which the Lenzing

Group holds a share of less than 100 percent and which are not

reported under puttable non-controlling interests.

Non-controlling interests in equity include LD Celulose S.A. (LDC),

Sao Paulo, Brazil, which is assigned to the Segment Division Pulp.

The non-controlling interests in LDC totaled EUR 174,719 thousand

as at December 31, 2021 (December 31, 2020: EUR 133,283 thou-

sand). As at December 31, 2021, non-controlling shareholders held

49.0 percent (December 31, 2020: 49.0 percent) of the capital and

voting rights in LDC, which is not publicly listed. After the comple-

tion of the plant, the core business of LDC will consist of the pro-

duction and sale of dissolving wood pulp.

67 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 39

The following table provides summarized nancial information on

LDC in accordance with IFRS (100 percent):

Summarized nancial information on LDC EUR '000

31/12/2021 31/12/2020

Non-current assets  

Current assets  

Equity  

Thereof equity attributable to shareholders of

Lenzing AG

 

Thereof equity attributable to non-controlling

interests

 

Non-current liabilities  

Current liabilities  

2021 2020

Revenue  

Earnings before tax (EBT) () ()

Total comprehensive income  ()

Thereof net prot/loss for the year () ()

Net prot/loss for the year attributable to

shareholders of Lenzing AG

() ()

Net prot/loss for the year attributable to

non-controlling interests

() ()

Thereof other comprehensive income  ()

Other comprehensive income attributable

to shareholders of Lenzing AG

 ()

Other comprehensive income attributable

to non-controlling interests  ()

Cash ow from operating activities  ()

Cash ow from investing activities () ()

Cash ow from nancing activities  

Change in cash and cash equivalents () 

Dividends paid to non-controlling interests  

Non-controlling interests in equity include PT. South Pacic Vis-

cose (SPV), Purwakarta, Indonesia, which is assigned to the Seg-

ment Division Fiber. The non-controlling interests in SPV totaled

EUR 17,232 thousand as at December 31, 2021 (December 31, 2020:

EUR 14,615 thousand). As at December 31, 2021, non-controlling

shareholders held 8.13 percent (December 31, 2020: 11.92 percent)

of the capital and voting rights in SPV, which is not publicly listed.

The core business of SPV is the production and sale of wood-based

cellulosic bers.

The following table provides summarized nancial information on

SPV in accordance with IFRS (100 percent):

Summarized nancial information on SPV EUR '000

31/12/2021 31/12/2020

Non-current assets  

Current assets  

Equity  

Thereof equity attributable to shareholders of

Lenzing AG

 

Thereof equity attributable to non-controlling

interests

 

Non-current liabilities  

Current liabilities  

2021 2020

Revenue  

Earnings before tax (EBT) () ()

Total comprehensive income () ()

Thereof net prot/loss for the year () ()

Net prot/loss for the year attributable to

shareholders of Lenzing AG () ()

Net prot/loss for the year attributable to

non-controlling interests

() ()

Thereof other comprehensive income  ()

Other comprehensive income attributable

to shareholders of Lenzing AG

 ()

Other comprehensive income attributable

to non-controlling interests

 ()

Cash ow from operating activities () 

Cash ow from investing activities () ()

Cash ow from nancing activities  ()

Change in cash and cash equivalents () ()

Dividends paid to non-controlling interests  

68 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 40

The following shares of other comprehensive income are attribut-

able to non-controlling interests in the subsidiaries of Lenzing AG:

Other comprehensive income attributable to

non-controlling interests

EUR

'000

2021 2020

Items that will not be reclassied subsequently

to prot or loss

Remeasurement of dened benet liability () 

Income tax relating to these components of

other comprehensive income

 ()

Items that may be reclassied to prot or loss

Foreign operations – foreign currency

translation dierences arising during the year

 ()

Cash flow hedges – effective portion of

changes in fair value recognized during the

year and non-designated components

() ()

Income tax relating to these components of

other comprehensive income

 

Other comprehensive income (net of tax)  ()

Note 29. Government grants

The amount accrued under this item resulted primarily from grants

for the promotion of investments in economically underdeveloped

regions, for investments in environmental protection and for gen-

eral investment support.

Investment grants are reported as liabilities and recognized in prot

or loss on a straight-line basis over the useful life of the subsidized

investments as “Income from the release of investment grants”.

Government grants for cost reimbursements are recognized as

other income in the period in which the related costs are incurred,

unless the receipt of the grant is contingent on conditions that are

not yet suciently likely to occur.

Government grants of EUR 12,755 thousand were recognized to

prot or loss in 2021 (2020: EUR 12,752 thousand), resulting pre-

dominantly from promotion of research activities. Any conditions

attached to the grants were fullled and repayment, in full or in part,

is there-fore considered unlikely.

Government grants also included EUR 42,254 thousand of emis-

sion certicates as at December 31, 2021 (December 31, 2020:

EU 18,048 thousand). In accordance with Directive 2003/87/EC of

the European Parliament and the European Council on a system for

trading greenhouse gas emission certicates, a total of 369,863

EU-emission certicates and 30,589 UK-emission certicates were

allocated free of charge to the relevant companies in the Lenzing

Group for 2021 through national allocation plans (2020: 393,758

EU-emission certicates and 34,808 UK-emission certicates).

Emission certicates are capitalized at fair value on the allocation

date. The dierence between the fair value and the purchase price

paid by the company for the emission certicates is recorded under

government grants. At the end of each reporting period, a provision

is recognized for the certicates used up to that date. The amount

of the provision is based on the recognized asset value of the cer-

ticates if they are covered by certicates held by the company at

this reporting date. If the certicates used exceed the certicates

held, the provision is based on the fair value of the certicates (to

be purchased subsequently) as at the relevant reporting date. Fu-

ture laws and commitments on emissions, especially in the coun-

tries of the Lenzing Group's production sites, could lead to further

precautionary measures in the future.

In the 2021 nancial year expenses for emission certicates

amounted to EUR 6,557 thousand (2020: EUR 4,738 thousand).

69 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 41

Note 30. Financial liabilities

The following table shows the composition of nancial liabilities as

at December 31:

Financial liabilities 31/12/2021 31/12/2020 EUR '000

Currency

Nominal

value

Carrying

amount

Average

eective

interest in %

Currency

Nominal

value

Carrying

amount

Average

eective

interest in %

Private placements

Fixed interest EUR    EUR   

Floating rate interest EUR    EUR   

Floating rate interest

USD    USD   

 

Bank loans

Loans:

Fixed interest EUR    EUR   

Fixed interest USD    USD   

Floating rate interest EUR    EUR   

Floating rate interest

USD    USD   

Operating loans

Floating rate interest CNY    CNY   

 

Lease liabilities

Fixed interest EUR    EUR   

 

Loans from other lenders

Fixed interest EUR    EUR   

Fixed and oating rate interest EUR    EUR   

Floating rate interest USD    USD   

Floating rate interest BRL    BRL   

 

Total  

Thereof current  

Thereof non-current  

1) The underlying contracts are linked to the USD-LIBOR reference interest rate as of the balance sheet date and have not yet been switched to an alternative reference interest rate.

2) Revolving credit agreements and overdrafts

In the 2012 nancial year, the Lenzing Group issued private place-

ments with an issue volume of EUR 200,000 thousand. The terms

cover four and seven years with xed and oating interest rates,

respectively, as well as a term of ten years with xed interest. The

average term is approximately six years. The Lenzing Group repaid

EUR 40,500 thousand of the existing private placements as sched-

uled in 2016. In the 2015 nancial year, the Lenzing Group reached

an agreement to renance its private placements with a corre-

sponding volume increase. Existing private placements of

EUR 89,500 thousand were terminated and re-issued at extended

terms. Additional private placements of EUR 60,500 thousand

were also issued. Overall these transactions involved the issue of

private placements totaling EUR 150,000 thousand, which have an

average term of seven years. In the 2021 nancial year

EUR 56,000 thousand (2020: EUR 37,500 thousand) were repaid.

In the 2019 nancial year, the Lenzing Group issued further private

placements with an issue volume of EUR 375.000 thousand and

USD 45.000 thousand. A term of 5 to 15 years with xed and oat-

ing interest rates was agreed.

In the 2020 nancial year, the Lenzing Group issued further private

placements with an issue volume of EUR 114,000 thousand and

TUSD 20,000 thousand. Terms of 5 to 7 years with xed and oat-

ing interest rates were agreed.

In 2020, a loan of EUR 200,000 thousand was arranged with Oes-

terreichische Kontrollbank. A term of 3 to 7 years with xed and

oating interest rates was agreed.

In 2021, a loan of EUR 160,000 thousand was arranged with Oes-

terreichische Kontrollbank. A term of 2 to 7 years with xed and

oating interest rates was agreed.

70 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 42

The nancing for the construction of the dissolving wood pulp

plant in Brazil was secured in the form of loans in the 2020 nancial

year (volume in USD 1,147,200 thousand). As at December 31, 2021,

EUR 739,462 thousand (December 31, 2020: EUR 237,504 thou-

sand) of the loans were used. These liabilities are collateralized by

pledged property, plant and equipment in the amount of

EUR 9,558 thousand (December 31, 2020: EUR 2,091 thousand)

and biological assets in the amount of EUR 95,767 thousand (De-

cember 31 2020: EUR 84,254 thousand). In addition, the shares in

LD Celulose S.A., Sao Paulo, Brazil were pledged for the nancing

of the pulp mill. Details on the existing nancial covenants are ex-

plained in note 36.

The next interest rate adjustment for the oating rate loans and

partially xed rate loans will take place within the next six months,

depending on the loan agreement. The conditions for loans that

can be utilized multiple times (revolving loans) are xed for a cer-

tain period and generally carry oating interest rates.

Other loans primarily involve obligations to the Austrian fund for

the promotion of research in industry (“Forschungsförderungs-

fonds der gewerblichen Wirtschaft”) and the ERP fund as well as

loans from non-controlling shareholders.

Note 31. Deferred taxes

(deferred tax assets and liabilities)

and current taxes

Deferred tax assets and liabilities relate to the following items on

the statement of nancial position:

Deferred tax assets EUR '000

31/12/2021 31/12/2020

Intangible assets and property, plant and

equipment

 

Financial assets  

Inventories  

Other assets  

Provisions  

Investment grants  

Lease liabilities  

Other liabilities  

Loss carryforwards  

Gross deferred tax assets – before valuation

adjustment  

Valuation adjustment to deferred tax assets () ()

Thereof relating to tax loss carryforwards () ()

Gross deferred tax assets  

Osettable against deferred tax liabilities () ()

Net deferred tax assets  

Deferred tax liabilities EUR '000

31/12/2021 31/12/2020

Intangible assets and property, plant and

equipment

 

Right-of-use assets  

Biological assets  

Financial assets  

Inventories  

Other assets  

Special depreciation/amortization for tax

purposes  

Investment grants  

Other liabilities  

Gross deferred tax liabilities  

Osettable against deferred tax assets () ()

Net deferred tax liabilities  

Of the total gross deferred tax assets, EUR 22,501 thousand (De-

cember 31, 2020: EUR 16,109 thousand) are due within one year. Of

the total gross deferred tax liabilities, EUR 12,416 thousand (De-

cember 31, 2020: EUR 6,480 thousand) are due within one year.

The remaining amounts are due in more than one year.

71 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 43

Deferred taxes developed as follows:

Development of deferred taxes EUR '000

2021 2020

As at 01/01 () ()

Recognized in prot or loss () ()

Recognized in other comprehensive income () 

Currency translation adjustment () 

As at 31/12 () ()

The Group held tax loss carryforwards of EUR 166,812 thousand as

at December 31, 2021 (December 31, 2020: EUR 166,162 thousand).

The existing tax loss carryforwards can be utilized as follows:

Loss carryforwards (assessment basis) EUR '000

31/12/2021 31/12/2020

Total  

Thereof capitalized loss carryforwards  

Thereof non-capitalized loss carryforwards  

Possible expiration of non-capitalized loss

carryforwards

Within 1 year  

Within 2 years  

Within 3 years  

Within 4 years  

Within 5 years or longer  

Unlimited carryforward  

Net deferred tax assets of EUR 3,581 thousand were recognized as

at December 31, 2021 (December 31, 2020: EUR 2,409 thousand),

including EUR 25 thousand (December 31, 2020: EUR 18 thousand)

in group companies that generated losses in the 2021 scal year or

in the previous year. The tax losses in the group companies con-

cerned derived mainly from one-o events which are not expected

to recur in the future. Otherwise, deferred tax assets were recog-

nized if sucient taxable temporary dierences were available.

Certain loss carryforwards were not capitalized because their usa-

bility is restricted. If all tax loss carryforwards could be utilized in

full, the deferred tax assets on loss carryforwards would total

EUR 37,908 thousand (December 31, 2020: EUR 38.889 thousand)

instead of EUR 5,236 thousand (December 31, 2020: EUR 9,155

thousand).

The nancial assets and other assets shown under deferred tax as-

sets in the above table include amounts for outstanding partial

write-downs to investments in accordance with Section 12 Para. 3

no. 2 of the Austrian Corporation Tax Act (“Siebentelabschreibung”,

the partial write-downs of investments over a period of seven years

for tax purposes) corresponding to a measurement base of

EUR 14,994 thousand (December 31, 2020: EUR 17,937 thousand).

Partial write-downs of EUR 4,612 thousand were utilized for tax

purposes in 2021 (2020: EUR 4,419 thousand).

Deferred tax liabilities were not recognized for temporary dier-

ences with a measurement base of EUR 474,481 thousand (De-

cember 31, 2020: EUR 446,410 thousand) in connection with in-

vestments in subsidiaries, joint ventures and associates and the

related proportional share of net assets held by group companies

because these dierences are not expected to reverse in the fore-

seeable future.

The receivables from current taxes include prepayments made to

foreign taxation authorities. These amounts are recognized when

the recoverability is probable, while valuation adjustments are

made in all other cases. The gross carrying amount of non-current

receivables from current taxes as of December 31, 2021 amounts

to EUR 21,819 thousand (December 31, 2020: EUR 15,496 thou-

sand). Payments are sometimes uncertain, especially the timing of

payments due to the sometimes long duration of proceedings. For

this reason, as at December 31, 2021, write-downs of

EUR 6,882 thousand were recognized (December 31, 2020:

EUR 339 thousand).

Lenzing AG and the subsidiaries included in the group tax agree-

ment are members of the tax group between B&C Holding Öster-

reich GmbH, as the head of the group, and Lenzing AG and other

subsidiaries of Lenzing AG, as group members, in accordance with

Section 9 of the Austrian Corporation Tax Act. The tax equalization

agreement was revised with eect from the 2021 nancial year.

This now also includes regulations concerning the interest barrier

(Section 12a of the Austrian Corporation Tax Act [KStG]).

Group taxation includes the oset of taxable prots and losses be-

tween the group members. The deferred tax assets and deferred

tax liabilities of the group members are also oset based on their

joint tax assessment. Future tax liabilities from the oset of losses

from foreign subsidiaries are recognized in the consolidated nan-

cial statements without discounting. The group and tax equaliza-

tion agreement requires Lenzing AG to pay a tax allocation equal

to the corporate income tax attributable to the taxable prot of the

company and the subsidiaries included in the tax group. The tax

allocation payable by Lenzing AG is reduced by any domestic and

foreign withholding taxes deductible from the overall group result

by the group parent and by any transferred minimum corporate in-

come taxes.

The tax allocation to be paid by Lenzing AG is also reduced by any

current losses/loss carryforwards caused by the group parent that

can be oset against positive earnings of Lenzing AG’s tax group

in the assessment year. The tax allocation is reduced by 25 percent

(2020: 25 percent) of the corporate tax rate (i.e. currently 6.25 per-

cent; 2020: 6.25 percent) applicable to the current losses/loss car-

ryforwards recorded by the head of the tax group that are oset

against positive earnings in an assessment year for the head of the

tax group. Tax losses recorded by Lenzing AG and the participating

subsidiaries are kept on record and oset against future tax gains.

An equalization payment is made as compensation for any losses

that are not oset when the contract is terminated.

72 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 44

The Lenzing Group includes the eects of uncertain tax positions

in the calculation of current and deferred taxes. Tax claims are rec-

ognized at the expected reimbursement amount in cases where

the claim is suciently certain. The tax returns of the Lenzing

Group’s subsidiaries are reviewed regularly by the taxation author-

ities. Appropriate provisions have been recognized for possible fu-

ture tax obligations based on a number of factors which include

interpretations, commentaries and legal decisions relating to the

respective tax jurisdiction and past experience. In addition, uncer-

tain tax positions are evaluated on the basis of estimates and as-

sumptions for future events. New information can become availa-

ble in the future that leads the Group to change its assumptions

regarding the appropriateness of tax positions. Any such changes

will aect tax expense in the period in which they are identied.

The recoverability of deferred tax assets is generally based on the

positive taxable results expected in the future – after the deduction

of taxable temporary dierences – in line with the forecasts ap-

proved by the Managing Board. These forecasts are also used for

impairment testing (see note 11). The assessment of unused tax loss

carryforwards and tax credits also involves the consideration of uti-

lization requirements.

73 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 45

Note 32. Provisions

The Lenzing Group’s provisions are classied as follows:

Provisions EUR '000

Total Thereof current Thereof non-current

31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020

Pensions and severance payments      

Jubilee benets      

     

Anticipated losses and other risks      

Emission certicates      

Sundry      

     

Total      

Provisions for pensions and similar obligations

Pensions and severance payments

The Lenzing Group has entered into obligations for pensions and

severance payments from dened benet plans, which are re-

ported under provisions for pensions and severance payments, and

from dened contribution plans.

Dened benet plans (for pensions and

severance payments)

The benets resulting from the dened benet plans for pensions

and severance payments are dependent on the nal salary or wage

and the length of service. They do not require any contributions by

employees.

The dened benet pension plans are based on contractual obli-

gations. The Lenzing Group’s most important dened benet pen-

sion plan is located in Austria. It applies to employees who joined

the Group before January 1, 2000 and decided to remain in the

plan. The claims generally arose after a vesting period of at least 10

or 15 service years. A retirement age of 58 to 63 years is assumed

for the beneciaries, depending on their gender. At present, the

plan primarily covers employees who have already retired. Qualify-

ing insurance policies were recognized as plan assets in some

cases, while coverage for these obligations is also provided by se-

curities that do not qualify as plan assets.

The dened benet severance plans are based on statutory obli-

gations and obligations under collective agreements. The Lenzing

Group’s most important dened benet severance plan is located

in Austria. This plan entitles employees whose employment rela-

tionship is governed by Austrian law and started before January 1,

2003 to a severance payment in specic cases, in particular when

they reach the statutory retirement age and in the event of termi-

nation by the employer (“old severance payment system”). The

amount of the severance payment depends on the employee’s sal-

ary or wage at the termination of employment and on the length of

the employment relationship. There are similar major dened ben-

et severance plans in Indonesia and the Czech Republic, which

apply to all employees irrespective of when they joined the respec-

tive company. The dened benet severance plans are not covered

by assets, but are nanced entirely through provisions.

74 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 46

The dened benet pension and severance plans are principally

connected with the following risks that inuence the amount of the

obligations to be recognized:

●

Investment risk: A decline in the income from plan assets be-

low the discount rate will result in a plan decit and an increase

in the obligations.

●

Interest rate risk: A decrease in the discount rate due to lower

bond interest rates on the capital market will result in an in-

crease in the obligations.

●

Salary and pension trend: An increase in the actual salary and

pension trends over the expected future levels will result in an

increase in the obligations.

●

Personnel turnover and departure risk: A decline in the ex-

pected personnel turnover rates will result in an increase in the

obligations.

●

Longevity risk: An increase in the life expectancy of the ben-

eciaries will result in an increase in the obligations.

The Lenzing Group is also exposed to currency risks in connection

with these plans.

The Lenzing Group takes various steps to reduce the risks from de-

ned benet plans. The related measures include, in particular, the

external nancing of dened benet plans with plan assets or the

coverage of obligations with securities that do not qualify as plan

assets and the settlement of existing dened benet plans with

lump sum payments. In addition, pension and similar commitments

are now only concluded as dened contribution commitments

where possible and legally permissible.

The objectives of the investment policy are to create an optimal

composition of plan assets and to ensure sucient coverage for

the existing claims of participating employees. The investment

strategies (asset allocations) for the plan assets are contractually

regulated. A reinsurance policy was concluded for part of the

claims from the Austrian pension plan. It is reported as plan asset

in the amount of EUR 2,598 thousand (December 31, 2020:

EUR 2,730 thousand). This policy is a conventional life insurance

policy which invests primarily in debt instruments that reect the

maturity prole of the underlying claims and are intended to main-

tain a high degree of investment security. The Lenzing Group

makes no further contributions to this insurance policy.

The fair values of the abovementioned equity and debt instruments

were based on price quotations on an active market. The plan as-

sets do not include any nancial instruments issued by or assets

used by the Lenzing Group. The actual return on plan assets totaled

EUR 152 thousand in 2021 (2020: EUR 149 thousand). The net inter-

est expense from the dened benet plans (expenses from the ac-

crued interest on the obligations and the return on plan assets) is

reported under nancing costs.

The most important actuarial parameters applied to the dened

benet pension and severance plans are as follows:

Actuarial assumptions for dened benet pension and

severance plans p. a. in %

31/12/2021 Discount rate

Salary

increase

Pension

increase

Sta turnover

deductions

Austria –

pensions

  - 

Austria –

severance

payments

  N/A 

Indonesia   N/A -

Czech

Republic

  N/A 

31/12/2020

Austria –

pensions   - 

Austria –

severance

payments

  N/A 

Indonesia  - N/A -

Czech

Republic

  N/A 

The major obligations from the dened benet plans are the obli-

gations for pensions and severance payments in the Lenzing

Group‘s Austrian companies. The discount rate for these obliga-

tions was derived from high-quality xed-income corporate bonds

with at least an AA rating based on an international actuary’s stand-

ards. Bonds with signicantly higher or lower interest rates than the

other bonds in their risk class (“statistical outliers”) were not in-

cluded in the calculation. The currency and terms of the bonds

used to derive the discount rate are based on the currency and ex-

pected terms of the obligations to be settled. The estimated salary

and pension increases, which are also considered realistic for the

future, were derived from the averages of recent years. Separate

employee turnover rates were applied for each company depend-

ing on the composition of the workforce and the employees’ length

of service. The retirement age used for the calculation is based on

the applicable legal regulations. Individual, country-specic as-

sumptions were made for each of the other countries to determine

the discount rate, salary increases, employee turnover rates and re-

tirement age.

The parameters used to calculate the dened benet pension

plans in Austria included the biometric data from AVÖ 2018 P – the

calculation base for pension insurance for salaried employees

The following biometric data and assumptions are used in other

countries:

●

Indonesia: Tabel Mortalita Indonesia (TMI 2019)

●

Czech Republic: AVÖ 2018-P

●

Other: No biometric assumptions were made because of the

low number of beneciaries.

75 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 47

The obligations (carrying amounts) from dened benet pension

and severance plans incl. restructuring measures reported in the

consolidated statement of nancial position comprise the follow-

ing:

Development of dened benet plans EUR '000

Present value of pension

and severance payment

obligation (DBO)

Fair value of plan assets

Carrying amounts of

dened benet pension

and severance plans

2021 2020 2021 2020 2021 2020

As at 01/01      

Service cost

Current service cost      

Past service cost      

Gain/loss on curtailments of plan      

Net interest      

Income and expenses from dened benet plans recognized on the

income statement      

Remeasurement during the reporting period

On the basis of demographic assumptions ()    () 

On the basis of nancial assumptions ()    () 

On the basis of experience adjustments  ()    ()

On the basis of income from plan assets, excl. amounts included in

interest income     () ()

Remeasurement of dened benet plans included in other

comprehensive income  ()    ()

Cash ows

Payments made from the plan () () () ()  

Direct payments and contributions by the employer () ()   () ()

Currency translation adjustment  ()    ()

Other reconciliation items () () () () () ()

As at 31/12      

Thereof pensions in Austria      

Thereof severance payments in Austria      

Thereof pensions and severance payments in other countries      

Sensitivity analyses are performed to evaluate the risk of changes

in the actuarial parameters used to measure the present value of

the obligations from dened benet plans. These sensitivity anal-

yses show the eects on the present value of the obligations from

hypothetical changes in key parameters that could have reasonably

changed as at the reporting date. One parameter was changed for

each analysis, while all other parameters were kept constant. The

sensitivity analyses are based on the present values of the obliga-

tions as at the reporting date before the deduction of plan assets

(gross obligation/DBO).

76 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 48

The sensitivities of the parameters as at the reporting dates are as

follows:

Sensitivity analysis of the dened benet

pension and severance payment obligations

31/12/2021

Change in

parameters

(percentage

points)

Decrease in

parameter/

change in

present value of

obligation in

EUR '000

Increase in

parameter/

change in

present value of

obligation in

EUR '000

Discount rate   ()

Salary increase  () 

Pension increase  () 

Sensitivity analysis of the dened benet pension and

severance payment obligations (previous year)

31/12/2020

Change in

parameters

(percentage

points)

Decrease in

parameter/

change in

present value of

obligation in

EUR '000

Increase in

parameter/

change in

present value of

obligation in

EUR '000

Discount rate   ()

Salary increase  () 

Pension increase  () 

The above sensitivity analyses represent hypothetical changes

based on assumptions. Actual deviations from these assumptions

will result in other eects. In particular, the parameters changed

individually for the analysis may actually correlate with each other.

The deduction of plan assets will lead to a further reduction of the

eects.

The Lenzing Group expects that in the following nancial year, con-

tributions of EUR 7,003 thousand (2020: EUR 6,488 thousand) will

fall due for payment into the dened benet plans.

The weighted average terms (durations) of the dened benet pen-

sion and severance payment obligations in years are as follows:

Weighted average durations of the dened benet

pension and severance payment obligations

Years

31/12/2021 31/12/2020

Austria – pensions  

Austria – severance payments - -

Indonesia  

Czech Republic  

Dened contribution plans (for pensions and

severance payments)

The Lenzing Group makes payments to pension funds and similar

external funds for dened contribution pension and severance

plans. The most signicant dened contribution pension and sev-

erance plans for the Lenzing Group are located in Austria (“new

severance payment system” and individual contractual commit-

ments).

The expenses for dened contribution plans are as follows:

Expenses for dened contribution plans EUR '000

2021 2020

Austria – pensions  

Austria – severance payments  

Other countries  

Total  

Provisions for jubilee benets

Collective agreements require Lenzing AG and certain subsidiaries,

particularly in Austria and the Czech Republic, to pay jubilee ben-

ets to employees who have been with the company for a certain

length of time. In the Austrian companies employees have the op-

tion to convert the jubilee benets into time credits. No assets

were segregated from the company and no contributions were

made to a pension fund or any other external fund to cover these

obligations. The jubilee benets do not require any contributions

by employees.

The obligations from jubilee benets for employees (long-service

bonuses) are considered other long-term employee benets under

IFRS. The net interest expense from jubilee benets (expenses

from the accrued interest on the obligations) is recorded under -

nancing costs. The discount rate applied to the Austrian obligations

is similar to the discount rate used for the other dened benet

plans. Employee turnover rates were determined separately for

each company depending on the composition of the workforce

and employees’ length of service. Individual, country-specic as-

sumptions were made for the discount rate, employee turnover

rates and salary increases in the other countries.

77 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 49

The main actuarial parameters applied to the obligations for jubilee

benets are as follows:

Actuarial assumptions for the jubilee benet

obligations p. a. in %

31/12/2021 Discount rate

Salary

increase

Staff

turnover

deductions

Austria   -

Czech Republic   

31/12/2020

Austria   -

Czech Republic   

The following table shows the development of the obligation (pro-

vision) for jubilee benets:

Development of the jubilee benet obligation

(provision) EUR '000

2021 2020

As at 01/01  

Service cost

Current service cost  

Net interest  

Remeasurement during the reporting period

On the basis of demographic assumptions () ()

On the basis of nancial assumptions  

On the basis of experience adjustments  ()

Income and expenses from dened benet

plans recognized on the income statement

 

Cash ows

Direct payments by employer () ()

Currency translation adjustment  ()

Other reconciliation items () ()

As at 31/12  

78 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 50

Other provisions and accruals

Other provisions and accruals developed as follows:

Development of other provisions EUR '000

2021 As at 01/01

Currency

translation

adjustment

Reclassi-

cation

Utilization Reversal Addition As at 31/12

Thereof

current

Thereof

non-current

Anticipated losses and other

risks     () 



  

Emission certicates    ()     

Sundry    () ()    

Total    () ()    

Development of other provisions (previous year) EUR '000

2020 As at 01/01

Currency

translation

adjustment

Reclassi-

cation

Utilization Reversal Addition As at 31/12

Thereof

current

Thereof

non-current

Anticipated losses and other

risks

   () () 



  

Emission certicates    ()     

Sundry  ()  () ()    

Total  ()  () ()    

1) Incl. accrued interest EUR 0 thousand (2020: EUR 144 thousand).

The measurement of provisions is based on past experience, cur-

rent cost and price information and estimates/appraisals by inter-

nal and external experts. The assumptions underlying the provi-

sions are reviewed regularly. The actual values may dier from

these assumptions if general conditions develop in contrast to ex-

pectations as at the reporting date. Changes are recognized in

prot or loss when better information is available and the premises

are adjusted accordingly.

Other provisions for anticipated losses and other risks include, in

particular, provisions for obligations from infrastructure services to

be performed of EUR 4,553 thousand (December 31, 2020:

EUR 7,973 thousand) and provisions for additional claims from pro-

curement contracts of EUR 21,200 thousand (December 31, 2020:

EUR 11,800 thousand) and for other onerous contracts. Other pro-

visions for emission certicates comprise the equivalent value of

the emission certicates used.

The other current provisions and accruals are expected to lead to

an outow of funds within the next twelve months. The outow of

funds arising from the long-term portion of other provisions is de-

pendent on various factors (in particular, guarantee and warranty

periods, contract terms and other events):

●

The outow of funds related to the other provisions for guar-

antees and warranties is expected within the next twelve

months.

●

The other provisions for anticipated losses and other risks are

expected to lead to an outow of funds as follows:

Expected outow of funds in connection with other

provisions (non-current) for anticipated losses and

other risks (estimated as of the reporting date)

EUR

'000

31/12/2021 31/12/2020

In the 2nd year  

In the 3rd to 5th year  

In the 6th to 10th year  

Total  

Note 33. Trade payables

All trade payables are classied as current assets.

Liabilities that are part of reverse factoring agreements are evalu-

ated to determine whether the original trade payable must still be

reported or whether it must be derecognized and a new nancial

liability recognized in accordance with the agreement. The decisive

factor is whether the Lenzing Group was released from its original

obligation. In cases where there was no release from the original

obligation, the Lenzing Group evaluates whether the reverse fac-

toring agreement has led to a new obligation that must be recog-

nized in addition to the trade payable. If that is also not the case, a

present value test is carried out to determine whether the reverse

factoring agreement has resulted in signicant changes to the con-

tractual terms of the trade payable which lead to derecognition of

the trade payable and the recognition of a new nancial liability.

Suppliers of the Lenzing Group nance their trade receivables from

the Lenzing Group with reverse factoring agreements. These sup-

pliers can commission their banks to forward payment for the re-

ceivables at an earlier point in time. The present value test indicates

that these agreements do not signicantly change the contract

79 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 51

terms (in particular payment terms and interest rates). The agree-

ments do not lead to the reclassication of the involved trade pay-

ables to another class of liability under civil law or IFRS regulations

from the Lenzing Group’s perspective. Consequently, there are no

changes to the presentation on the consolidated statement of -

nancial position (under trade payables) or the consolidated state-

ment of cash ows (under cash ow from operating activities). The

potentially aected trade payables totaled EUR 126,693 thousand

as at December 31, 2021 (December 31, 2020: EUR 54,294 thou-

sand). The carrying amount of the potentially aected trade paya-

bles for which the suppliers have already received payments from

the banks stands at EUR 119,902 thousand (December 31, 2020:

EUR 45,405 thousand). As in the previous year, the Lenzing Group

has not provided any collateral.

The liquidity risk of the reverse factoring agreements consists of a

concentration since the reverse factoring agreements currently in

place have been made with only one single nancial institution, giv-

ing rise to the risk of a revocation of the reverse factoring agree-

ment by this nancial institution. The liabilities aected by these re-

verse factoring agreements are settled in accordance with the

agreed due date. The related, estimated outows are taken into

account in liquidity planning. The Lenzing Group assesses the risk

concentration with regard to sucient nancing sources as rather

low because the risk spread of the Lenzing Group’s nancing over

dierent nancial institutions is maintained. Furthermore, the re-

verse factoring agreements include no material nancing compo-

nent and their discontinuation would therefore also not result in a

signicant increase in nancing requirements. Liabilities relating to

reverse factoring agreements amount to 6.0 percent as at the re-

porting date (December 31, 2020: 3.5 percent) relative to the

group’s total nancial liabilities.

Information regarding the liquidity and foreign currency risk of the

group exposure is presented in note 39.

Note 34. Other liabilities

Other non-current liabilities consist of the following:

Other non-current liabilities EUR '000

31/12/2021 31/12/2020

Other non-current nancial liabilities

(particularly from derivatives)

 

Non-current non-nancial accruals for personnel

expenses

 

Other non-current non-nancial liabilities

(particularly partial retirement obligations)  

Total  

Other current liabilities consist of the following:

Other current liabilities EUR '000

31/12/2021 31/12/2020

Other current nancial liabilities

Derivatives not yet settled (open positions)  

Other accruals  

Contract liabilities – accruals for discounts and

rebates (see note 5)  

Other current nancial liabilities  

 

Other current non-nancial liabilities

Liabilities from other taxes  

Wage and salary liabilities  

Social security liabilities  

Contract liabilities – down payments received

(see note 5)

 

Accruals for personnel expenses  

Deferred income and other  

 

Total  

The accruals for personnel costs consist primarily of liabilities for

short-term claims by active and former employees (in particular, for

unused vacation and compensation time, overtime and perfor-

mance bonuses).

Other accruals cover, above all, anticipated losses from revenue

reductions/increases in expenses from transactions with custom-

ers and suppliers (in particular, discounts and rebates) and liabilities

for the delivery of goods and the performance of services by third

parties which have not yet been invoiced.

80 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 52

Note 35. Disclosures on the

Consolidated Statement of Cash

Flows

Liquid funds represent cash and cash equivalents as shown on the

statement of nancial position. Cash and cash equivalents include

cash in hand and cash at banks, demand deposits, checks and

short-term time deposits as well as liquid current securities with a

term of less than three months which are only subject to limited

uctuations in value (see note 37).

Other non-cash income/expenses in the 2021 nancial year in-

cludes impairment losses to inventories as well as write-ups and

impairment losses to nancial assets and other non-current assets.

Other non-cash income/expenses also contain unrealized net ex-

change rate gains/losses and measurement eects from receiva-

bles.

Non-cash transactions from the acquisition of intangible assets and

property, plant and equipment are not included in cash ow from

investing activities for the current period. These transactions

essentially involve outstanding payments to suppliers of

EUR 16,180 thousand (2020: EUR 41,179 thousand).

Cash and cash equivalents also include bank accounts with nega-

tive balances in cases where netting agreements have been con-

cluded (see note 37).

Reconciliation of nancial liabilities EUR '000

2021

Private

placements

Bank loans

Loans from

other lenders

Lease liabilities

Subtotal other

nancial

liabilities

Total

As at 01/01      

Cash

ows

Increase in nancial liabilities

     

Repayment of nancial liabilities () () () () () ()

Non-cash

changes

Currency translation adjustment

     

Discounting/accrued interest   ()   

Additions to lease liabilities      

Other changes    () () ()

As at 31/12      

Reconciliation of nancial liabilities (previous year) EUR '000

2020

Private

placements

Bank loans

Loans from

other lenders

Lease liabilities

Subtotal other

nancial

liabilities

Total

As at 01/01      

Cash

ows

Increase in nancial liabilities

     

Repayment of nancial liabilities () () () () () ()

Non-cash

changes

Currency translation adjustment

() () () () () ()

Discounting/accrued interest      

Additions to lease liabilities      

Other changes    () () ()

As at 31/12      

Notes to the Consolidated Statement of Cash Flows

81 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 53

Note 36. Capital risk management

General information

The overriding objective of equity and debt management in the

Lenzing Group is to optimize the income, costs and assets of the

individual operations/business units and of the Group as a whole

in order to achieve and maintain sustainably strong economic

performance and a sound balance sheet structure. An important

role in this process is played by nancial leverage capacity, the pro-

tection of sucient liquidity at all times and a clear focus on key

cash-related and performance indicators in line with the Group’s

strategic course and long-term goals. This protects the ability of

the group companies to operate on a going concern basis. In

addition, the authorized capital and contingent capital give

Lenzing AG greater exibility in raising additional equity in order to

take advantage of future market opportunities.

The equity management strategy followed by the Lenzing Group is

designed to ensure that Lenzing AG and the other group compa-

nies have an adequate equity base to meet local requirements. A

couple of loan agreements with banks also include nancial cove-

nants, above all concerning the level of equity, the ratio of net

nancial debt to EBITDA and other nancial indicators or nancial

criteria for the Group or individual or aggregated group companies.

A breach of these nancial covenants would allow the banks to

demand early repayment of the nancial liabilities in certain cases.

These nancial covenants are regularly monitored by the Global

Treasury department and are considered in the determination of

distributions by the involved group companies. All related capital

requirements were met during the 2021 nancial year.

Management uses an adjusted equity ratio for internal control pur-

poses. Adjusted equity is calculated in accordance with IFRS and

comprises equity as well as investment grants less the related de-

ferred taxes. The adjusted equity ratio (= adjusted equity in relation

to total assets) equaled 39.7 percent as at December 31, 2021 (De-

cember 31, 2020: 45.8 percent).

Adjusted equity is calculated as follows:

Adjusted equity EUR '000

31/12/2021 31/12/2020

Equity  

+ Government grants  

Proportional share of deferred taxes on

government grants

() ()

Total  

The dividend policy of Lenzing AG, as the parent company of the

Lenzing Group, is based on the principles of continuity and a long-

term focus in order to support the future development of the com-

pany, to distribute dividends to shareholders in line with the com-

pany’s opportunity and risk situation, and to appropriately reect

the interests of all other stakeholders who are decisive for the com-

pany’s success.

Net nancial debt

The Supervisory Board and Managing Board of Lenzing AG regu-

larly review the development of net nancial debt because this in-

dicator is an extremely important benchmark not only for the

Group’s management, but also for the nancing banks. The ratio of

net nancial debt to EBITDA is particularly relevant. The continued

optimal development of the Lenzing Group is only possible with

convincing internal nancing strength as the basis for increased

debt capacity.

Interest-bearing nancial liabilities are classied as follows:

Interest-bearing nancial liabilities EUR '000

31/12/2021 31/12/2020

Non-current nancial liabilities  

Current nancial liabilities  

Total  

Liquid assets consist of the following:

Liquid assets EUR '000

31/12/2021 31/12/2020

Cash and cash equivalents  

Liquid bills of exchange (in trade receivables)  

Total  

Net nancial debt in absolute terms and in relation to EBITDA (see

note 4) is as follows:

Net nancial debt (absolute) EUR '000

31/12/2021 31/12/2020

Interest-bearing nancial liabilities  

- Liquid assets () ()

Total  

Notes on Risk Management

82 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 54

Net nancial debt in relation to EBITDA EUR '000

31/12/2021 31/12/2020

EBITDA  



Net nancial debt / EBITDA  



1) Reclassication of capitalized borrowing costs, net interest from dened benet plans

and commitment fees from EBIT/EBITDA to the nancial result (see note 2).

Note 37. Disclosures on nancial

instruments

Carrying amounts, fair values, measurement

categories and measurement methods

The following table shows the carrying amounts and fair values of

the nancial assets and nancial liabilities for each class and each

IFRS 9 category and reconciles this information to the appropriate

line items on the statement of nancial position. Other receivables

(non-current and current) and other liabilities (non-current and cur-

rent) as reported on the statement of nancial position include -

nancial instruments as well as non-nancial assets and liabilities.

Therefore, the “no nancial instrument” column allows for a com-

plete reconciliation with the line items on the statement of nancial

position. Lease liabilities which are to be considered nancial lia-

bilities but cannot be allocated to a measurement category in ac-

cordance with IFRS 9 are also reported in this column.

83 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 55

Carrying amounts, category, fair value and fair value hierarchy of nancial instruments EUR '000

Carrying amount Fair value

Financial assets as at

31/12/2021

At amortized

cost

At fair value

through

prot or loss

At fair value through other

comprehensive income

No nancial

instrument

Total Fair value

Fair value

hierarchy

Debt

instruments

Equity

instruments

Cash ow

hedges

Originated loans    



Non-current securities      Level

Other equity investments 

  Level

Current securities 

  Level

Financal assets (current and

non-current)

       

Trade receivables        



Derivatives with a positive

fair value (cash ow hedges)

   Level

Derivatives with a positive

fair value (cash ow hedges

with the underlying already

recognized in prot or loss)

   Level

Other      Level

Other assets (current and

non-current)

       

Cash and cash equivalents        



Total        

Carrying amount Fair value

Financial liabilities as at 31/12/2021

At amortized

cost

At fair value

through

prot or loss

At fair value through other

comprehensive income

No nancial

instrument

Total Fair value

Fair value

hierarchy

Cash ow

hedges/

Fair value

hedges

Retained

earnings

Private placements    Level

Liabilities to banks    Level

Liabilities to other lenders    Level

Lease liabilities   



Financial liabilities       

Trade payables      



















Provisions (current)      















Puttable non-controlling interests        Level

Derivatives with a negative fair value

(cash ow hedges) 

  Level

Derivatives with a negative fair value

(cash ow hedges with the underlying

already recognized in prot or loss)



  Level

Derivatives with a negative fair value

(fair value hedges)



  Level

Other    



Other liabilities (current and non-current)       

Total       

1) The carrying amount approximates fair value.

2) Cash and cash equivalents include money market funds. These money market funds are allocated to the category “at fair value through prot or loss”. The carrying amount of

other cash and cash equivalents approximates fair value.

84 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 56

Carrying amounts, category, fair value and fair value hierarchy of nancial instruments (previous year) EUR '000

Carrying amount Fair value

Financial assets as at

31/12/2020

At amortized

cost

At fair value

through

prot or loss

At fair value through other

comprehensive income

No nancial

instrument

Total Fair value

Fair value

hierarchy

Debt

instruments

Equity

instruments

Cash ow

hedges

Originated loans   



Non-current securities      Level

Other equity investments 

  Level

Financal assets (current and

non-current)

      















Trade receivables       

















Derivatives with a positive

fair value (cash flow hedges)

   Level

Derivatives with a positive

fair value (cash flow hedges

with the underlying already

recognized in profit or loss)

   Level

Other      Level

Other assets (current and

non-current)

       

Cash and cash equivalents        



Total        

Carrying amount Fair value

Financial liabilities as at 31/12/2020

At amortized

cost

At fair value

through

prot or loss

At fair value through other

comprehensive income

No nancial

instrument

Total Fair value

Fair value

hierarchy

Cash ow

hedges/

Fair value

hedges

Retained

earnings

Private placements    Level

Liabilities to banks    Level

Liabilities to other lenders    Level

Lease liabilities   



Financial liabilities       

Trade payables       



Provisions (current)       



Puttable non-controlling interests        Level

Derivatives with a negative fair value

(cash ow hedges)    Level

Derivatives with a negative fair value

(cash ow hedges with the underlying

already recognized in prot or loss)

   Level

Derivatives with a negative fair value

(fair value hedges)

   Level

Other    



Other liabilities (current and non-current)       

Total       

1) The carrying amount approximates fair value.

85 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 57

Depending on the classication/measurement category, nancial

instruments are subsequently measured at (amortized) cost or fair

value. The Lenzing Group uses the following measurement cate-

gories: “at amortized cost”, “at fair value through prot or loss” and

“at fair value through other comprehensive income”. The measure-

ment category “at fair value through prot or loss” is solely used for

nancial assets that are mandatorily measured at fair value.

Cash and cash equivalents include money market funds in the

amount of EUR 343,515 thousand (December 31, 2020:

EUR 0 thousand). In assessing the classication of money market

funds as cash equivalents, an assessment is undertaken to deter-

mine whether the fund meets the denition of cash equivalents. In

particular, Lenzing AG examines whether regular and early callabil-

ity may occur and whether the credit risk and interest rate risk are

low. With regard to credit risk, the creditworthiness of the fund it-

self and of the instruments it contains is assessed. Interest rate risk

is examined, in particular, using the fund’s Weighted Average Ma-

turity (WAM). Money market funds are allocated to the category

“at fair value through prot or loss”. The fair value is derived from

the latest calculated value and is to be categorized in level 1 of the

fair value hierarchy.

In the nancial year under review, a reclassication was realized

from equity instruments measured at fair value through other com-

prehensive income (level 3) to current securities (level 1). The rea-

son for the reclassication is the initial public oering of the com-

pany Spinnova OY, Jyväskylä, Finland, on June 24, 2021. The inter-

est held by Lenzing AG was converted into shares. As a conse-

quence of the issue of the new shares, the previous interest of

6.8 percent was diluted and now amounts to 4.67 percent. The se-

curities are measured at fair value and recognized directly in other

comprehensive income due to the exercise of the corresponding

option. This leads to an adjustment of the carrying amount of

EUR 31,732 thousand.

The Lenzing Group accounts for reclassications in the fair value

hierarchy at the end of the reporting period in which the changes

occur.

The measurement of nancial instruments is monitored and re-

viewed by the Lenzing Group. The necessary market data are vali-

dated based on the dual control principle.

In light of the varying inuencing factors, the fair values presented

can only be regarded as indicators of the values that could actually

be realized on the market.

The fair value of purchased bonds is derived from the respective

current market prices and uctuates, in particular, with changes in

market interest rates and the credit standing of the issuers. The fair

value of shares is derived from the current stock exchange prices.

These securities are assigned to the category “at fair value through

other comprehensive income”.

The fair value of investment funds is derived from the latest calcu-

lated value. These securities are assigned to the category “at fair

value through prot or loss”.

The measurement of equity investments including derivatives des-

ignated as a hedge (fair value hedge) is classied “at fair value

through other comprehensive income”. The fair value is determined

on the basis of a market approach and is to be categorized in level

3 of the fair value hierarchy. The determined fair value of the equity

investment would increase (decrease) in particular if the planned

EBITDA increased (decreased). The determined fair value of the

derivative has an inverse correlation to the abovementioned pa-

rameters.

The nominal value of fair value hedge derivatives amounts to

EUR 14,120 thousand as at December 31, 2021 (December 31,

2020 : EUR 11,723 thousand). The change in value for the hedged

item and the hedge, which was used to calculate ineectiveness,

amounts to EUR 0 thousand as at December 31, 2021 (Decem-

ber 31, 2020: EUR minus 5,547 thousand). No ineectiveness was

recognized through prot or loss in the current nancial year or in

the previous year. The risk management goal is to hedge the value

of the investment against value uctuations. The economic rela-

tionship for fair value hedge derivatives is ensured by the fact that

the change in the value of the hedged item is oset by the change

in the value of the hedge. A put/call option is used as a hedge. The

hedge ratio is determined based on the nominal value. The hedging

instruments run until December 31, 2021 and December 31, 2022.

The following tables show the development of the fair values of the

equity investments and the associated derivatives of level 3:

Development of level 3 fair values of

equity investments and related derivatives

EUR '000

2021

Equity

investments

Derivatives

with a

negative fair

value (fair

value

hedges)

As at 01/01  ()

Financial assets measured at fair value through

other comprehensive income (equity

instruments) – net fair value gain/loss on

remeasurement recognized during the year () 

Transfer to Level 1 () 

As at 31/12  

Development of level 3 fair values of equity

investments and related derivatives

(previous year)

EUR '000

2020

Equity

investments

Derivatives

with a

negative fair

value (fair

value

hedges)

As at 01/01  ()

Financial assets measured at fair value through

other comprehensive income (equity

instruments) – net fair value gain/loss on

remeasurement recognized during the year  ()

As at 31/12  ()

86 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 58

A change in key input factors which cannot be observed on the

market would have the following eects on the measurement of

the equity instruments and the associated derivatives:

Sensitivity analysis of level 3 input factors for equity investments and related derivatives EUR '000

Other comprehensive income (net of tax)

Increase Decrease

Equity

investments

Derivatives with a

negative fair

value (fair value

hedges)

Total

Equity

investments

Derivatives with a

negative fair

value (fair value

hedges)

Total

EBITDA (+/- 5%) 31/12/2021    ()  ()

EBITDA (+/- 5%) 31/12/2020  ()  ()  ()

Other nancial assets from earn-out agreements are classied “at

fair value through prot or loss”. The fair value of these other nan-

cial assets is determined based on an income approach. It is to be

categorized in level 3 of the fair value hierarchy. The measurement

model is based on the planned EBITDA, the weighted average cost

of capital (WACC) after tax and the repayment terms.

The determined fair value would increase (decrease) in particular if

EBITDA increased (decreased). The determined fair value would

decrease (increase) if the WACC after tax increased (decreased).

The determined fair value would increase if the repayment were to

be made two years earlier.

Development of level 3 fair values of other

nancial assets

EUR '000

2021 2020

As at 01/01  

Gain/loss included in nancial result  

As at 31/12  

A change in key input factors which cannot be observed on the

market would have the following eects on other nancial assets:

Sensitivity analysis of level 3 input factors for

other nancial assets EUR '000

Financial result

31/12/2021 31/12/2020

Other nancial

assets

Increase Decrease Increase Decrease

EBITDA (+/- 5%)  ()  ()

Discount rate

(WACC) after tax

(+/- 1%)

()  () 

Repayment 2 years

earlier

 n/a  n/a

The sensitivities are determined by conducting the measurements

again using the changed parameters.

Puttable non-controlling interests

The Dexco-Group (formerly known as Duratex Group) has a put

option and has the right to sell its shares if a change of control oc-

curs regarding the owner of the Lenzing Group (change of control

clause). This obligation is recognized under liabilities from puttable

non-controlling interests. Puttable non-controlling interests are al-

located to the category “at fair value through other comprehensive

income”. The fair value of these puttable non-controlling interests

is determined based on the planned or projected cash ows less

cost of disposal and net debt at the measurement date. The budget

approved by the Management and Supervisory Boards and the me-

dium-term plans are the starting point for the cash ow projections.

After the detailed planning period of ve years, a 25-year return

based on a sustainable EBITDA margin is expected based on last

year’s assumptions. The planning period for the calculation of fair

value is contractually limited to a maximum of 30 years. Cash ows

are discounted to their present value with a discounted cash ow

method. The applied discount rate is calculated on an individual

basis using the capital asset pricing model (CAPM) and represents

a composite gure (weighted average cost of capital – WACC) that

combines the average interest rate for debt and the anticipated re-

turn on equity employed. An after-tax WACC of 8,1 percent (De-

cember 31, 2020: 8.0 percent) was used at the measurement date.

Fair value measurement is classied in full as level 3 of the fair value

87 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 59

hierarchy because key input factors (in particular, cash ows) can-

not be observed on the market.

Development of level 3 fair values of

puttable non-controlling interest

EUR '000

2021 2020

As at 01/01  

Addition due to change in shareholding interest

recognised directly in equity  

Measurement of puttable non-controlling

interest recognized directly in equity

 

As at 31/12  

The determined fair value would increase (decrease) if the operat-

ing margin increased (decreased) or if the after-tax WACC de-

creased (increased). A change these unobservable input factors

would have the following eects on the measurement of puttable

non-controlling interests:

Sensitivity analysis of level 3 input factors for

puttable non-controlling interest

EUR '000

Measurement result oset against retained earnings

31/12/2021 31/12/2020

Puttable non-

controlling

interests

Increase Decrease Increase Decrease

EBITDA (+/- 5%)  ()  ()

Discount rate

(WACC) after tax

(+/- 0.25%) ()  () 

The sensitivities are determined by conducting the measurements

again using the changed parameters.

The loan agreements, which were concluded for the construction

of the dissolving wood pulp pant in Brazil (see note 30), include, at

the project company level, nancial covenants which refer in par-

ticular to the ratio of net nancial debt to EBITDA and may trigger

an obligation to repay the nancial liabilities if the covenants are

not met. At the Lenzing Group level, market restrictive covenants

are in place. These nancial covenants are regularly monitored by

the Global Treasury department and are considered in the deter-

mination of distributions by the group companies involved. Len-

zing AG and the joint venture partner have committed to a xed

debt/equity ratio of the project company (63/37) and guarantee

the nancial liabilities of the project company in the amount of their

share in the capital. Lenzing AG therefore guarantees 51 percent.

Due to the full consolidation, 100 percent of the project company’s

nancial liabilities are included in the consolidated statement of -

nancial position.

The fair values of the other nancial liabilities are determined in ac-

cordance with generally accepted valuation methods based on the

discounted cash ow method. The most important input factor is

the discount rate, which incorporates the available market data

(risk-free interest rates) and the credit standing of the Lenzing

Group, which is not observable on the market. The fair values of the

nancial guarantee contracts represent the estimated expected

default arising from the maximum possible payment obligation and

the expected loss.

Derivative nancial instruments and hedges

Derivatives are measured at fair value. Their fair value corresponds

to the applicable market value, if available, or is calculated using

standard methods based on the market data available at the meas-

urement date (in particular exchange rates and interest rates). Cur-

rency and commodity forwards are measured at the respective for-

ward rate or price at the reporting date. These forward rates or

prices are based on the spot rates or prices and include forward

premiums and discounts. The Group’s own models are used to es-

timate the measurement. The measurement of derivatives also in-

cludes the counterparty risk (credit risk/counterparty risk/non-per-

formance risk) in the form of discounts to the fair value that would

be used by a market participant for pricing.

As a matter of principle, the Lenzing Group applies the hedge ac-

counting rules dened by IFRS 9 to the following derivative nan-

cial instruments. The retrospective hedging eect or ineective-

ness is evaluated with the dollar-oset method, which compares

the accumulated changes in the fair value of the hedged items with

the accumulated changes in the fair value of the hedges in line with

the compensation method.

88 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 60

The measurement of the hedged item is oset by the hedge and is

therefore eective. Risks of ineectiveness include the credit risk

of a counterparty, a signicant change in the credit risk of a con-

tractual party in the hedging relationship or the change of time of

payment of the hedged item, reduction of the total invoice amount

or price of the hedged item. Risks are always hedged in their en-

tirety. The hedging ratio for the hedged nominal values is 100 per-

cent.

The critical terms of payment of the hedged items and hedging in-

struments (in particular, the nominal value and time of payment) are

generally identical or oset one another (“critical terms match”).

Therefore, the Managing Board considers the osetting of value

changes of the hedged items and hedging instrument resulting

from changes in the exchange rate when forming a measurement

unit as highly eective.

Cash ow hedge derivatives for currency risks

The Lenzing Group uses derivative nancial instruments to hedge

currency risks arising from investments and from the operating

business. These derivative nancial instruments serve to balance

the variability of cash ows from future transactions. Hedges are

determined in advance on the basis of the expected purchases and

sales in the relevant foreign currency. In hedging future cash ows

in foreign currencies (cash ow hedges), the Lenzing Group typi-

cally hedges the risk up to the time of the foreign currency payment.

Hedge eectiveness is measured by grouping the hedged items

and hedging instruments together in at least quarterly maturity

ranges for each hedged risk. Cash ow hedges whose underlying

hedged item was already recognized in prot or loss are used to

hedge foreign currency receivables/liabilities that were recognized

at the reporting date but do not impact cash until a later time.

Cash ow hedges were concluded during the 2020 nancial year

to hedge against the currency risk of highly probable additional

capital contributions in a subsidiary. With the realization of the for-

ward foreign exchange contracts, the amounts of the changes in

value initially recognized in other comprehensive income were

reclassied to the foreign currency translation reserves. As at

December 31, 2021, EUR 850 thousand (December 31, 2020

EUR 24,018 thousand) were reclassied to the foreign currency

translation reserve.

89 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 61

The nominal values and fair values of the cash ow hedges are as

follows as at the reporting dates:

Nominal value, fair value and hedging period of cash ow hedge derivatives for currency risks

31/12/2021 EUR '000

Nominal value

in '000

Positive

fair value

Negative

fair value

Net fair value

Hedging

period until

Average

hedging rate

Change in

fair value used

to calculate

ineectiveness

Forward foreign exchange

contracts

CNY/CNH-sale / EUR-buy CNY/CNH   () () /  ()

CNY/CNH-sale / GBP-buy CNY/CNH   ()  /  ()

EUR-buy / USD-sale EUR   () () /  ()

BRL buy / EUR sale BRL   () () /  ()

BRL buy / USD sale BRL   () () /  ()

USD-buy / CNY-sale USD   () () /  ()

EUR-buy / GBP-sale EUR   () () /  ()

EUR-sale / GBP-buy EUR     /  

USD-sale / CZK-buy USD   () () /  ()

USD-sale / EUR-buy USD   () () /  ()

IDR-buy / USD-sale IDR   () () /  

Total  () () ()

Fair value: + = receivable, – = liability from the Lenzing Group’s perspective

The hedging period represents the period for the expected cash ows and their recognition in prot or loss.

Nominal value, fair value and hedging period of cash ow hedge derivatives for currency risks (previous year)

31/12/2020 EUR '000

Nominal value

in '000

Positive

fair value

Negative

fair value

Net fair value

Hedging

period until

Average

hedging rate

Change in

fair value used

to calculate

ineectiveness

Forward foreign exchange

contracts

CNY/CNH-sale / EUR-buy CNY/CNH     /  ()

CNY/CNH-sale / GBP-buy CNY/CNH   () () /  ()

CZK-buy / EUR-sale CZK   ()  /  

EUR-buy / USD-sale EUR     /  

CNY/CNH-buy / GBP-sale CNY/CNH   () () /  ()

BRL buy / EUR sale BRL   () () /  ()

BRL buy / USD sale BRL   () () /  ()

THB-buy / USD-sale THB     /  

USD-buy / CNY-sale USD   () () /  ()

EUR buy / BRL sale EUR     /  

EUR-sale / GBP-buy EUR     /  

USD-sale / CZK-buy USD     /  

USD-sale / EUR-buy USD     /  

Total  () () ()

Fair value: + = receivable, – = liability from the Lenzing Group’s perspective

The hedging period represents the period for the expected cash ows and their recognition in prot or loss.

90 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 62

The carrying amounts and the ineectiveness of the hedged items (purchases and sales) designated as hedging instruments as of the

balance sheet dates are as follows:

Disclosures on hedged items of cash ow hedge derivatives for currency risks – ineectiveness EUR '000

2021 2020

Currency risks

Change in

fair value used

to calculate

ineectiveness

Ineectiveness

Line item in

the income

statement

Change in

fair value used

to calculate

ineectiveness

Ineectiveness

Line item in

the income

statement

Sales ()  Financialresult   Financialresult

Purchases ()  Financialresult ()  Financialresult

Total ()  () 

Cash ow hedge derivatives for combined

interest rate/currency risks

The Lenzing Group deploys derivative nancial instruments in or-

der to hedge interest rate/currency risks arising from private place-

ments denominated in US dollars. Hedges are utilized to oset the

variability of interest and principal payments resulting from the

hedged item.

The nominal values of the cash ow hedge derivatives as at De-

cember 31, 2021 amount to EUR 39,704 thousand and

EUR 17,646 thousand (December 31 2020: EUR 40,861 thousand

and EUR 18,160 thousand). The fair value of the cash ow hedge

derivatives as at December 31, 2021 amounts to EUR minus

1,442 thousand (December 31, 2020: EUR minus 6,279 thousand).

The contracts of the hedging instruments and the underlying

hedged items are linked to the USD-LIBOR reference interest rate

as of the balance sheet date and have not yet been switched to an

alternative reference interest rate.

The change in fair value used to calculate ineectiveness amounts

to EUR minus 911 thousand (for the tranche of USD 20 mn) (De-

cember 31, 2020: EUR minus 1,890 thousand) and EUR minus

1,311 thousand (for the tranche of USD 45 mn) (December 31, 2020:

EUR minus 4,258 thousand). The ineective portion as at Decem-

ber 31, 2020 amounts to EUR 0 thousand (December 31, 2020:

EUR 0 thousand). Over the term, the average xed interest rate

amounts to 0.75 percent and the average hedging rate amounts to

1.10 USD/EUR. The hedge expires in December 2024.

Cash ow hedge derivatives for interest rate

risks

The Lenzing Group uses derivative nancial instruments to hedge

interest rate risks arising from loans taken out with variable interest

rates. These hedges are used to oset the variability of cash ows

from future interest payments resulting from the hedged item.

The nominal values of the cash ow hedge derivatives as at De-

cember 31, 2021 amount to EUR 418,211 thousand (December 31,

2020: EUR 0 thousand). The fair value of the hedge derivatives as

at December 31 2021 amounts to EUR minus 1,937 thousand (De-

cember 31, 2020: EUR 0 thousand). The contracts of the hedging

instruments and the underlying hedged items are linked to the

USD-LIBOR reference interest rate as of the balance sheet date

and have not yet been switched to an alternative reference interest

rate.

The change in fair value used to calculate the ineectiveness

amounts to EUR minus 1,937 thousand (December 31, 2020:

EUR 0 thousand). The ineective portion as at December 31, 2021

amounts to EUR 0 thousand. The average xed interest rate

amounts to 1.83 percent over the term. The hedge expires in

June 2029.

91 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 63

Hedging Reserve

The change in the hedging reserve is as follows:

Changes in the hedging reserve EUR '000

2021 2020

Hedging

reserve

Cost of

hedging

Total

Hedging

reserve

Cost of

hedging

Total

Hedging reserve as at 01/01 ()  ()   

Currency risks ()  () ()  ()

Combined interest rate/currency risks    ()  ()

Interest rate risks ()  ()   

Cash ow hedges – changes in fair value recognized during the year ()  () ()  ()

Currency risks      

Reclassication to revenue      

Currency risks     () 

Reclassication to inventories     () 

Currency risks      

Reclassication to property, plant and equipment      

Combined interest rate/currency risks    ()  ()

Reclassication to nancial result    ()  ()

Hedging reserve as at 31/12 ()  () ()  ()

92 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 64

Osetting nancial assets and liabilities

The Lenzing Group has concluded a number of framework netting

agreements (in particular, master netting arrangements). The

amounts owed by each counterparty under such agreements on a

single day in the same currency based on the total outstanding

transactions are aggregated into a single net amount to be paid by

one party to the other.

The following tables present information on osetting nancial as-

sets and liabilities in the consolidated statement of nancial posi-

tion on the basis of framework netting agreements. The (gross)

amounts presented in the “Financial assets” and “Financial liabilities”

columns correspond to the (net) nancial assets and liabilities rec-

ognized. The column “eect of framework netting agreements”

shows the amounts which result from these types of agreements,

but which do not meet the criteria for osetting in the IFRS con-

solidated statement of nancial position.

Osetting of nancial instruments EUR '000

Financial assets as at

31/12/2021

Financial

assets

(gross=net)

Eect of

framework

netting

agreements

Net

amounts

Other nancial assets – derivative

nancial instruments with a

positive fair value

 () 

Financial assets as at

31/12/2020

Other nancial assets – derivative

nancial instruments with a

positive fair value

 () 

Osetting of nancial instruments EUR '000

Financial liabilities as at

31/12/2021

Financial

liabilities

(gross=net)

Eect of

framework

netting

agreements

Net

amounts

Other nancial liabilities –

derivative nancial instruments

with a negative fair value

 () 

Financial liabilities as at

31/12/2020

Other nancial liabilities –

derivative nancial instruments

with a negative fair value

 () 

Transfer of nancial assets

(sale of receivables/factoring)

Factoring agreements are in place which require the banks to pur-

chase certain trade receivables from the Lenzing Group for a re-

volving monthly nominal amount. The Lenzing Group is entitled to

sell these receivables. The agreements have indenite terms,

whereby each party has the right to cancel the agreements with

notice and allow them to expire. The factoring agreements had a

maximum usable nominal volume of EUR 73,235 thousand as at

December 31, 2021 (December 31, 2020 EUR 72,214 thousand).

They have been suspended since the 2017 nancial year.

93 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 65

Note 38. Net interest and net result

from nancial instruments and net

foreign currency result

Net interest and net result

The following table shows the net interest and net result from -

nancial instruments by class/measurement category in accordance

with IFRS 9:

Net interest and net result from nancial instruments EUR '000

2021

Interest

income

Interest

expense

Net

interest

From

subsequent

measure-

ment at

fair value

through

prot or loss

From

subsequent

measure-

ment at

fair value

through

other com-

prehensive

income

Measured

at fair value

through

other

compre-

hensive

income and

reclassied

to prot or

loss

From

impairment/

reversal

of an

impairment

loss

Result on

disposal

Net result

(total)

Financial assets measured at

amortized cost

      () () 

Financial assets measured at

fair value through prot or

loss    ()   ()  ()

Equity instruments measured

at fair value through other

comprehensive income

        

Debt instruments measured

at fair value through other

comprehensive income     ()   () ()

Financial liabilities measured

at amortized cost

 () ()      ()

Total  () () ()   () () ()

Net interest and net result from nancial instruments

(previous year) EUR '000

2020

Interest

income

Interest

expense

Net

interest

From

subsequent

measure-

ment at

fair value

through

prot or loss

From

subsequent

measure-

ment at fair

value

through

other com-

prehensive

income

Measured at

fair value

through

other

compre-

hensive

income and

reclassied

to prot or

loss

From

impairment/

reversal

of an

impairment

loss

Result on

disposal

Net result

(total)

Financial assets measured at

amortized cost       ()  

Financial assets measured at

fair value through prot or

loss

   ()   ()  

Equity instruments measured

at fair value through other

comprehensive income     ()    ()

Debt instruments measured

at fair value through other

comprehensive income

    ()   () 

Financial liabilities measured

at amortized cost

 () ()      ()

Total  () () () ()  () () ()

94 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 66

The net result from nancial instruments comprises the following:

net interest (current interest income and expenses, including the

amortization of premiums and discounts and dividends from com-

panies not accounted for using the equity method), gains/losses

on fair value measurement which are recognized in prot or loss or

through other comprehensive income and the result of impairment

losses (recognition and reversal of bad debt provisions/valuation

adjustments) and on disposals. Income from equity and debt in-

struments measured at fair value through other comprehensive in-

come includes gains/losses from remeasurement and from the re-

classication of remeasurement gains/losses to prot or loss. Net

result from nancial instruments does not include exchange rate

gains/losses (with the exception of nancial instruments carried at

fair value through prot or loss) or gains/losses from hedging in-

struments (cash ow hedges).

The change in the bad debt provisions for receivables measured at

amortized cost is mainly recognized under “Selling expenses”.

The component recognized directly in equity from the subsequent

measurement of equity and debt instruments measured at fair

value through other comprehensive income is reported under the

“reserve for nancial assets measured at fair value through other

comprehensive income”. The remaining components of the net re-

sult are included under “income from non-current and current -

nancial assets” and in “nancing costs”.

Net foreign currency result

In other operating income/expenses are included net foreign cur-

rency gains/losses in the amount of EUR plus 11.557 thousand

(2020: EUR minus 7,521 thousand), in income from non-current

and current nancial assets in the amount of EUR plus 5.203 thou-

sand (2020: EUR minus 6.696 thousand), and in nancing costs

in the amount of EUR plus 4.405 thousand (2020: EUR plus

6.391 thousand).

Note 39. Financial risk management

As an international company, the Lenzing Group is exposed to -

nancial and other market risks. A company-wide risk management

system, which is regulated comprehensively in guidelines, has

been implemented to identify and assess potential risks at an early

stage. This system is designed to achieve maximum risk transpar-

ency and provide high-quality information by quantifying all risk

categories, with a particular emphasis on risk concentration. The

eciency of group-wide risk management is evaluated and moni-

tored on an ongoing basis by both the internal control system (ICS)

and the internal audit department.

The nancial risks arising from nancial instruments – credit risk,

liquidity risk, currency risk (above all with regard to the BRL, CNY,

CZK, HKD, IDR, THB and USD), commodity price risk and interest

rate risk – are classied as relevant risks for the Lenzing Group.

Corresponding hedging measures are used to minimize these risks

wherever possible. Acquired shares in external companies are con-

sidered long-term investments and, therefore, are not viewed as a

relevant market price risk over the short- to medium-term.

Credit risk

Credit risk represents the risk of asset losses that may result from

the failure of individual business partners to meet their contractual

obligations. The credit risk from transactions involving the provision

of goods and services (in particular, trade receivables) is secured

to a substantial extent by credit insurance and bank security (guar-

antees, letters of credit, bills of exchange etc.). Outstanding receiv-

ables and customer limits are monitored on an ongoing basis. The

credit risk from investments with banks (above all, cash and cash

equivalents) and derivatives with a positive market value is reduced

by only concluding transactions with counterparties that can

demonstrate a sound credit rating.

Receivables are measured individually. Individual bad debt provi-

sions are recognized for receivables if there are indications of credit

impairment (individual measurement) and if they are not expected

to be collectible in full. This applies especially when the debtor has

signicant nancial diculties, is in default or has delayed pay-

ments or when there is an increased probability that the debtor will

enter bankruptcy and the involved receivable is not suciently col-

lateralized. The expected loss is low because of the Lenzing

Group’s comprehensive receivables management (extensive col-

lateralization with credit insurance and bankable security as well as

continuous monitoring of accounts receivable and customer limits).

To determine the required impairment for trade receivables for

which no individual bad debt provisions were recognized, the de-

faults of the past years were evaluated in the Lenzing Group. The

analysis has shown that there is only an immaterial risk for receiva-

bles overdue for a certain period.

The loss ratios are based on historical default rates of the last nine

years and are distinguished by companies and periods overdue.

The COVID-19 crisis did not result in any signicant changes in de-

fault rates during the nancial year. The relevant development is

continuously monitored by the management.

For non-current debt instruments assigned to the category “at fair

value through other comprehensive income”, originated loans and

other nancial assets (current and non-current), which are meas-

ured at amortized cost, as well as cash and cash equivalents, the

calculation of impairment is based on the average default rates.

The impairment is based on the default rate per rating for the re-

spective nancial instrument. A signicant change in credit risk is

identied based on the rating and default of payment. Regarding

instruments with a low credit risk, the Lenzing Group assumes that

the credit risk has not increased signicantly since the rst recog-

nition. Consequently, the twelve month credit loss is always recog-

nized for such instruments. Since the expected impairment is im-

material, no expected credit loss is recorded for these nancial as-

sets.

The reduced earning power and uncertainties, in particular due to

a re at a plant of the buyer of EFB in 2018 (including its subsidiar-

ies), result in a higher default risk for the receivables from these

companies. Therefore, the calculation of bad debt provisions for

these originated loans was changed from the expected twelve

month credit loss to lifetime expected credit loss in 2018. The life-

time expected credit loss was determined based on the dierence

between the contractual payments and all payments expected by

the management in the future.

95 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 67

Trade receivables are considered defaulted when they are overdue

for more than 270 days or when it is unlikely that the debtor can

meet the obligations without the realization of collateral. This long

period of time results from the fact that about 90 percent of trade

receivables are insured by credit insurance.

Financial assets are only derecognized directly if the contractual

rights to payments cease to exist (particularly in the event of bank-

ruptcy). An impairment loss is reversed up to amortized cost if the

reasons for its recognition no longer exist.

The Group considers the risk concentration in trade receivables to

be rather low because its customers are based in various countries,

operate in dierent sectors and are active on largely independent

markets. A rather small amount of the receivables is overdue and

not individually impaired (see table “aging of receivables” below).

Important eects for a change in bad debt provisions include pos-

sible default of payment by major customers or a general increase

of receivables at the reporting date. During the nancial year there

was no signicant increase in defaults. Trade receivables increased

as at December 31, 2021.

The bad debt provisions developed as follows:

Development and reconciliation of

bad debt provisions

EUR '000

Lifetime

expected

credit loss

(portfolio

measure-

ment)

Lifetime

expected

credit loss

(individual

measure-

ment)

Trade receivables

Bad debt provisions as at 01/01/2021  

Transfer to “Lifetime expected credit loss”  ()

Reversal () ()

Addition  

Currency translation adjustment  

Bad debt provisions as at 31/12/2021  

Development and reconciliation of

bad debt provisions (previous year) EUR '000

Lifetime

expected

credit loss

(portfolio

measure-

ment)

Lifetime

expected

credit loss

(individual

measure-

ment)

Trade receivables

Bad debt provisions as at 01/01/2020  

Transfer to “Lifetime expected credit loss”  ()

Reversal () ()

Addition  

Currency translation adjustment () ()

Bad debt provisions as at 31/12/2020  

Lifetime expected credit loss

(individual measurement)

EUR '000

2021 2020

Originated loans at amortized cost

Bad debt provisions as at 01/01  

Utilization

Reversal () 

Addition  

Currency translation adjustment  ()

Bad debt provisions as at 31/12  

Other nancial assets

(non-current and current)

Bad debt provisions as at 01/01  

Utilization  

Addition  

Bad debt provisions as at 31/12  

The bad debt provisions for trade receivables include bad debt pro-

visions of EUR 1,810 thousand (2020: EUR 650 thousand) for com-

panies accounted for using the equity method.

The bad debt provisions for trade receivables are related primarily

to bad debt provisions for overdue, uninsured receivables.

96 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 68

The carrying amount of the impaired receivables is as follows:

Aging and expected credit loss for

trade receivables

EUR '000

31/12/2021

Gross

carrying

amount

Expected

credit loss

Not overdue  

Overdue up to 30 days  

Overdue for 31 to 90 days  

Overdue for 91 to 365 days  

Overdue for more than one year  

Credit impaired receivables

(individual measurement)

 

Total  

Aging and expected credit loss for

trade receivables (previous year)

EUR '000

31/12/2020

Gross

carrying

amount

Expected

credit loss

Not overdue  

Overdue up to 30 days  

Overdue for 31 to 90 days  

Overdue for 91 to 365 days  

Overdue for more than one year  

Credit impaired receivables

(individual measurement)  

Total  

Development of expected credit loss not

including credit impaired nancial assets EUR '000

As at 01/01/2020 

Change 

As at 31/12/2020 = 01/01/2021 

Change 

As at 31/12/2021 

Aging of nancial receivables EUR '000

Originated

loans

Other

nancial

receivables

(current and

non-current)

Gross carrying amount as at 31/12/2021  

Thereof at the reporting date:

Not overdue  

Thereof impaired  

Aging of nancial receivables (previous year) EUR '000

Originated

loans

Other

nancial

receivables

(current and

non-current)

Gross carrying amount as at 31/12/2020  

Thereof at the reporting date:

Not overdue  

Thereof impaired  

Securities in the scope of the impairment provisions of IFRS 9 as

well as cash and cash equivalents have a rating between AAA and

BBB.

There are currently no doubts concerning the collectability of -

nancial assets that are neither past due nor impaired.

The maximum exposure to credit risk from recognized nancial as-

sets is as follows:

Maximum exposure to credit risk from

recognized nancial assets

EUR '000

31/12/2021 31/12/2020

Carrying amount of asset nancial instruments

(see note 37)

 

Less risk reduction in relation to receivables

due to

Credit insurance received for trade

receivables (not including deductibles) () ()

Guarantees received for trade receivables () ()

Total  

The maximum exposure to credit risk from nancial guarantee con-

tracts and contingent liabilities is shown in note 42.

Liquidity risk

Liquidity risk represents the risk of not being able to obtain sufficient

funds to settle incurred liabilities at all times. The management of

liquidity risk has a high priority in the Lenzing Group. Corporate

guidelines require uniform, proactive liquidity forecasts and medium-

term planning throughout the entire Group. The Lenzing Group

continuously monitors the risk of a possible liquidity shortage.

The Lenzing Group had liquid assets totaling EUR 1,124,120 thou-

sand (December 31, 2020: EUR 1,081,122 thousand) in the form of

cash and cash equivalents including money market funds and liquid

bills of exchange (see note 36). Unused credit facilities of

EUR 454,471 thousand were available as at December 31, 2021

(December 31, 2020: EUR 1,031,364 thousand) to nance neces-

sary working capital and to cover any shortfalls caused by eco-

nomic cycles. The medium- and long-term nancing for the Len-

zing Group is provided by equity and nancial liabilities, in particu-

lar bonds, private placements and bank loans. Current nancial li-

abilities can regularly be extended or renanced with other lenders.

Trade payables provide short-term nancing for the goods and ser-

vices purchased. The liabilities covered by reverse factoring agree-

ments are settled in line with their agreed maturity, whereby the

related cash outows are included in liquidity planning. For this rea-

son, the Group considers the concentration of risk with regard to

sucient nancing sources as rather low.

97 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 69

The contractually agreed (undiscounted) interest and principal

payments for primary nancial liabilities (including nancial guar-

antee contracts) are shown below:

Maturity analysis of non-derivative

nancial liabilities EUR '000

Carrying

amount

as at

31/12/2021

Cash flows

2022

Cash flows

2023 to

2026

Cash ows

from 2027

Private placements    

Bank loans    

Loans from other

lenders

   

Lease liabilities    

Trade payables    

Puttable non-

controlling interests

   

Other nancial

liabities

   

Total    

Thereof:

Fixed interest   

Fixed and oating

rate interest   

Floating rate

interest

  

Repayment   

1) The above includes the maximum possible payment obligations from nancial guar-

antee contracts. The amounts are assumed to be due in the rst year.

Maturity analysis of non-derivative

nancial liabilities (previous year)

EUR '000

Carrying

amount

as at

31/12/2020

Cash ows

2021

Cash ows

2022 to

2025

Cash ows

from 2026

Private placements    

Bank loans    

Loans from other

lenders    

Lease liabilities    

Trade payables    

Puttable non-

controlling interests

   

Other nancial

liabities

   

Total    

Thereof:

Fixed interest   

Fixed and oating

rate interest

  

Floating rate

interest

  

Repayment   

1) The above includes the maximum possible payment obligations from nancial guar-

antee contracts. The amounts are assumed to be due in the rst year.

The above tables include all primary nancial liabilities held at the

reporting date, but exclude estimated future liabilities. Foreign cur-

rency amounts were translated with the spot exchange rate in ef-

fect at the reporting date. Floating rate interest payments were cal-

culated according to the last interest rates set before the reporting

date. Financial liabilities that are repayable at any time are always

assigned to the earliest time period.

98 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 70

The contractually agreed (undiscounted) interest and principal

payments for derivative nancial instruments are as follows:

Maturity analysis of derivative nancial

instruments

EUR '000

Carrying

amount

as at

31/12/2021

Cash

ows

2022

Cash

ows

2023 to

2026

Cash

ows

from 2027

Currency, combined

interest rate/currency and

interest rate derivatives

Derivatives with a positive

fair value (cash ow hedges)

   

Derivatives with a positive

fair value (cash ow hedges

with the underlying already

recognized in prot or loss)

   

Positive fair value    

Derivatives with a negative

fair value (cash ow hedges) () () () ()

Derivatives with a negative

fair value (cash ow hedges

with the underlying already

recognized in prot or loss)

() ()  

Negative fair value () () () ()

Total () () () ()

Cash ows consist solely of principal and do not include any interest components.

Fair value: + = receivable, - = liability from the Lenzing Group’s perspective

Maturity analysis of derivative nancial

instruments (previous year)

EUR '000

Carrying

amount

as at

31/12/2020

Cash

ows

2021

Cash

ows

2022 to

2025

Cash

ows

from 2026

Currency, combined

interest rate/currency and

interest rate derivatives

Derivatives with a positive

fair value (cash ow hedges)    

Derivatives with a positive

fair value (cash ow hedges

with the underlying already

recognized in prot or loss)    

Positive fair value    

Derivatives with a negative

fair value (cash ow hedges)

() () () 

Derivatives with a negative

fair value (cash ow hedges

with the underlying already

recognized in prot or loss) () ()  

Negative fair value () () () 

Total () () () 

Cash ows consist solely of principal and do not include any interest components.

Fair value: + = receivable, - = liability from the Lenzing Group’s perspective

Currency risk

Cash ows from capital expenditures and the operating business

as well as investments and nancing in foreign currencies expose

the member companies of the Lenzing Group to currency risks.

Risks from foreign currencies are hedged as far as possible if they

inuence the Group’s cash ows. In the operating business, the in-

dividual group companies are exposed to currency risk in connec-

tion with planned incoming and outgoing payments outside their

functional currency. Forward foreign exchange contracts, which

are recognized at fair value, are used to hedge the exchange rate

risk from foreign currency positions arising from expected future

transactions in foreign currencies by group companies.

For companies with the same functional currency, the respective

net foreign currency exposures are calculated for the following

sales year as part of the budgeting process. Foreign currency pur-

chases and sales are aggregated into separate groups for each cur-

rency. Approximately 62 percent of the budgeted net exposure for

the following nancial year was hedged for EUR/USD, the domi-

nant currency pair in the Lenzing Group, as at December 31, 2021

(December 31, 2020: approximately 73 percent). The CNY also

plays an important role. The resulting risk concentration at the re-

porting date can be seen in the following tables (especially the ta-

bles on “sensitivity analysis and risk exposure for foreign currency

risks”).

Translation risk is also regularly assessed and monitored at the

Group level. Translation risk represents the risk arising from the

consolidation of foreign investments whose functional currency is

not the euro. The greatest risk exposure here is in relation to the US

dollar.

Commodity risk

The gas price risk is hedged physically through supply contracts.

The group is also subject to the usual market price risks in connec-

tion with its business activities (especially relating to wood, chem-

icals, pulp and energy) which are not hedged with derivatives or

nancial instruments, but protected through other measures

(above all, long-term and short-term supply contracts with various

suppliers).

Interest rate risk

The Lenzing Group is exposed to interest rate risk through its busi-

ness-related nancing and investing activities. Interest rate risks

arise through potential changes in the market interest rate. They

can lead to a change in the fair value of xed rate nancial instru-

ments and to uctuations in the cash ows from interest payments

for oating rate nancial instruments. Interest rate risks and the re-

sulting risk concentrations are managed by monitoring and adjust-

ing the composition of xed rate and oating rate primary nancial

instruments on an ongoing basis and by the selective use of deriv-

ative nancial instruments. The level of the resulting risk concen-

tration as of the balance sheet date is presented in the following

tables (see section “Sensitivity analysis and exposure for interest

rate risks”).

99 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 71

Sensitivity analysis and exposure for currency

risks

The Lenzing Group uses the following assumptions for its sensitiv-

ity analysis:

●

The sensitivity of prot or loss is based on the receivables and

liabilities recognized by the group companies which are de-

nominated in a currency other than the functional currency of

the relevant company and the open derivatives from cash ow

hedges for currency risks in cases where the hedged item was

already recognized in prot or loss as at the reporting date. The

carrying amounts of the receivables and liabilities, respectively

the nominal values of the derivatives, correspond to the expo-

sure. The individual exposures are presented consistently in re-

lation to the US dollar and euro for the aggregation to the

Group’s exposure.

●

The sensitivity of other comprehensive income as at the re-

porting date is based on the open derivatives from cash ow

hedges for currency risks in cases where the hedged item has

not yet been recognized in prot or loss. The nominal value of

the open derivatives corresponds to the exposure.

The following tables show the sensitivities and exposure for cur-

rency risk as at the reporting dates:

Sensitivity analysis and risk exposure for foreign currency risks (EUR) EUR '000

31/12/2021 31/12/2020

Group exposure

in relation to EUR

Sensitivity to

10% devaluation

of the EUR

Sensitivity to

10% revaluation

of the EUR

Group exposure

in relation to EUR

Sensitivity to

10% devaluation

of the EUR

Sensitivity to

10% revaluation

of the EUR

EUR-USD   ()   ()

EUR-GBP   () () () 

EUR-CNY/CNH   ()   ()

EUR-CZK () ()  () () 

EUR-HKD () ()  () () 

Sensitivity of net prot or loss after tax

(through receivables and payables)   ()  ()

Sensitivity of other comprehensive income

after tax

(through cash ow hedge derivatives)

()  () 

Sensitivity of equity  ()  ()

Group exposure: + receivable, – liability; sensitivity: + increase in prot/other comprehensive income, - decrease in prot/other comprehensive income

Sensitivity analysis and risk exposure for foreign currency risks (USD/GBP) EUR '000

31/12/2021 31/12/2020

Group exposure

in relation to

USD/GBP

Sensitivity to

10% devaluation

of the USD/GBP

Sensitivity to

10% revaluation

of the USD/GBP

Group exposure

in relation to

USD/GBP

Sensitivity to

10% devaluation

of the USD/GBP

Sensitivity to

10% revaluation

of the USD/GBP

USD-IDR () ()  () () 

USD-GBP () ()  () () 

USD-CNY/CNH   ()   ()

USD-CZK () ()  () () 

USD-THB   () () () 

USD-BRL   () () () 

GBP-CNY/CNH   ()   ()

Sensitivity of net prot or loss after tax

(through receivables and payables)   () () 

Sensitivity of other comprehensive income

after tax

(through cash ow hedge derivatives)

()   ()

Sensitivity of equity ()  () 

Group exposure: + receivable, – liability; sensitivity: + increase in prot/other comprehensive income, - decrease in prot/other comprehensive income

100 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 72

Sensitivity analysis and exposure for interest

rate risks

The following tables show the exposure for interest rate risks at the

reporting dates in the form of the carrying amounts of interest-

bearing primary nancial instruments:

Risk exposure for interest rate risks EUR '000

31/12/2021

Fixed interest

Fixed and

oating rate

interest

Floating rate

interest

No interest Total

Cash and cash equivalents     

Financial assets     

Financial liabilities () () ()  ()

Net risk position () () ()  ()

Eects from derivative instruments (hedging) ()    

Net risk position after hedging eect () ()   ()

+ Receivables, - Liabilities

Risk exposure for interest rate risks (previous year) EUR '000

31/12/2020

Fixed interest

Fixed and

oating rate

interest

Floating rate

interest

No interest Total

Cash and cash equivalents     

Financial assets

    

Financial liabilities () () ()  ()

Net risk position () ()   ()

Eects from derivative instruments (hedging) ()    

Net risk position after hedging eect () ()   ()

+ Receivables, - Liabilities

1) Includes, among others, the GF 82 wholesale fund whose income is distributed or reinvested.

101 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 73

Sensitivity analyses are performed for the interest rate risks arising

from oating rate nancial instruments and from the uctuation in

the market values of cash ow hedge derivatives. They show the

eects of hypothetical changes in interest rates on prot or loss,

other comprehensive income and equity.

The Lenzing Group uses the following assumptions in its analysis

of the interest rate risk arising from oating rate nancial instru-

ments:

●

The sensitivity analysis includes all oating rate primary and

derivative nancial instruments as at the reporting date.

●

The exposure corresponds to the carrying amount of the oat-

ing rate nancial instruments.

The sensitivities and exposure for the interest rate risks arising from

oating rate nancial instruments are as follows as at the reporting

dates:

Sensitivity analysis for interest rate risks from

variable-rate primary and derivative nancial

instruments

EUR '000

31/12/2021

Net risk

position

after

hedging

eect

Sensitivity

to a 100 bp

increase in

the interest

rate level

Sensitivity to

a 100 bp

decrease in

the interest

rate level

Sensitivity of net prot or loss

after tax

 () ²

31/12/2020

Sensitivity of net prot or loss

after tax   ()²

1) A reduction in the basis points results in a proportional decrease in the sensitivity.

2) The evaluation is based on the assumption that negative interest rates are paid on

cash and cash equivalents. The evaluation does not include liabilities for which no

negative interest is calculated.

The Lenzing Group bases the sensitivity analysis for the interest

rate risk from the uctuation in market values of cash ow hedge

derivatives for interest rate risks on the following assumptions:

●

The sensitivity of other comprehensive income as at the re-

porting date is based on the open derivative from cash ow

hedges for interest rate risks in cases where the hedged item

has not yet been recognized in prot or loss.

●

The exposure corresponds to the nominal value of the deriva-

tive amount of EUR 418,211 thousand (December 31, 2020:

EUR 0 thousand).

An increase in the interest rate level by 1 percentage point would

lead to an increase in other comprehensive income (after taxes) of

EUR 9,543 thousand (December 31, 2020: EUR 0 thousand). A de-

crease in the interest rate level by 1 percentage point would lead to

a reduction in other comprehensive income (after taxes) of

EUR 9,532 thousand (December 31, 2020: EUR 0 thousand). The

interest rate sensitivity has no eect on prot or loss, as the meas-

urement of interest rate derivatives is recognized in the hedging

reserve with no eect on prot or loss.

The Lenzing Group holds nancial instruments that are linked to an

IBOR reference interest rate and must be replaced as part of the

IBOR reform. Until December 31, 2021, the previous reference in-

terest rate, the Euro Overnight Index Average (EONIA), relating to

aected nancial liabilities was adjusted to the Euro Short-Term

Rate (€STR) reference interest rate. The changeover of the USD-

LIBOR reference interest rate relating to aected nancial liabilities

and corresponding cash ow hedge derivatives for combined in-

terest rate/currency risks and for interest rate risks to an alternative

reference interest rate has already begun. The Lenzing Group is

monitoring the transition to alternative reference interest rates and

is managing the resultant risks.

Additional information on nancial risk management and nancial

instruments is provided in the risk report of the Lenzing Group’s

management report as at December 31, 2021.

102 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 74

Note 40. Related party disclosures

Overview

Related parties of the Lenzing Group include, in particular, the

member companies of the B&C Group together with its subsidiar-

ies, joint ventures and associates and its corporate bodies (execu-

tive board/management and supervisory board, where applicable)

as well as close relatives of the members of the corporate bodies

and companies under their inuence (see note 1 “Description of the

company and its business activities” and note 41). The amounts and

transactions between Lenzing AG and its consolidated subsidiaries

are eliminated through consolidation and are not discussed further

in this section.

B&C Privatstiftung is managed by a board of trustees. No member

of the Managing Board of Lenzing AG is a member of this board of

trustees or the management/Managing Board of a subsidiary of

B&C Privatstiftung, with the exception of subsidiaries of the Len-

zing Group. The Lenzing Group has no inuence over the business

activities of B&C Privatstiftung.

The members of the corporate bodies of Lenzing AG (in particular,

the Supervisory Board) and the above-mentioned entities are, in

some cases, also members of the corporate bodies or shareholders

of other companies with which Lenzing AG maintains ordinary

business relationships. The Lenzing Group maintains ordinary busi-

ness relationships with banks that involve nancing, investing and

derivatives.

Relationship with related companies

In connection with the tax group established with B&C Group

(see note 31), the Lenzing Group recognized a tax credit of

EUR 747 thousand through prot or loss in 2021 (2020:

EUR 24 thousand). Contractual obligations resulted in the payment

or advance payment of tax allocations totaling EUR 15,285 thou-

sand in 2021 (2020: EUR 19,196 thousand). The Lenzing Group rec-

ognized a liability of EUR 28,000 thousand towards B&C Group

from the tax allocation, after the deduction of advance payments,

as at December 31, 2021 (December 31, 2020: receivable

EUR 4,568 thousand). The tax loss of EUR 0 thousand (Decem-

ber 31, 2020: EUR 3,256 thousand) was recognized under deferred

tax assets. Income tax expense of EUR 17,268 thousand was rec-

ognized in 2021 as a result of the tax allocation to B&C Group (2020:

EUR 1,229 thousand).

Relationships with companies accounted for

using the equity method and their material

subsidiaries

Transactions with companies accounted for using the equity

method and their material subsidiaries relate primarily to:

Material relationships with companies

accounted for using the equity method

EQUI-Fibres Beteiligungsgesellschaft mbH

and its subsidiaries (EFB)

Distribution of bers, delivery of

pulp, loan assignment

Lenzing Papier GmbH (LPP)

Provision of infrastructure and

administrative services

RVL Reststoverwertung Lenzing GmbH

(RVL)

Operation of a recycling plant and

purchase of the generated steam;

letting of land

Hygiene Austria LP GmbH (HGA), the

shares were sold in March 2021

Supply of raw materials, provision

of services, loan receivable,

guarantee given and purchasing of

protective masks

Gemeinnützige Siedlungsgesellschaft

m.b.H. für den Bezirk Vöcklabruck (GSG)

Provision of infrastructure and

administrative services

PT. Pura Golden Lion (PGL) Loan liability

Wood Paskov s.r.o. (LWP) Purchase of wood

LD Florestal S.A. (LDF) Land use rights, loan liability

The scope of material transactions and the outstanding balances

with companies accounted for using the equity method and their

major subsidiaries are as follows:

Relationships with companies accounted for using

the equity method and their material subsidiaries

EUR

'000

2021 EFB

Other

associates

LDF

Other

joint

ventures

Total

Goods and

services provided

    

Goods and

services received

    

Receivables as at

31/12

    

Liabilities as at

31/12

    

Disclosures on Related Parties and Executive Bodies

103 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 75

Relationships with companies accounted for using

the equity method and their material subsidiaries

(previous year)

EUR '000

2020 EFB

Other

associates

LDF

Other

joint

ventures

Total

Goods and

services provided

    

Goods and

services received

    

Receivables as at

31/12     

Liabilities as at

31/12     

Bad debt provisions of EUR 1,160 thousand for trade receivables

from companies accounted for using the equity method were rec-

ognized to prot or loss as expense in 2021 (2020: EUR 2,100 thou-

sand income).

Kelheim Fibers GmbH, Kelheim, Germany, a subsidiary of the eq-

uity-accounted investee EQUI-Fibres Beteiligungsgesellschaft

mbH, Kelheim, Germany, received a long-term, unsecured loan of

EUR 5,000 thousand from Lenzing AG in 2017. The interest reects

standard bank rates.

Hygiene Austria LP GmbH received a long-term, unsecured loan of

EUR 2,000 thousand from Lenzing AG in the 2020 nancial year.

The interest reects standard bank rates. In the 2021 nancial year,

this loan was waived as part of the divestiture of Hygiene Austria

LP GmbH. Lenzing AG guaranteed up to a maximum of

EUR 1,000 thousand to a supplier of Hygiene Austria LP GmbH un-

til the divestiture of Hygiene Austria LP GmbH.

LD Florestal S.A., issued an unsecured loan of EUR 27,913 thousand

to the fully consolidated subsidiary LD Celulose S.A. in 2019, which

carries standard bank interest rates. EUR 14.748 thousand of the

loan were drawn down as at December 31, 2021 (December 31,

2020: EUR 21,318 thousand). In addition, LD Florestal S.A. granted

LD Celulose S.A. a land use right in the 2020 nancial year. The

carrying amount of the resulting lease liability amounts to

EUR 36,941 thousand as at December 31, 2021 (December 31,

2020: EUR 39,620 thousand).

There were no major transactions with the other non-consolidated

subsidiaries in 2020 and 2021.

Relationships with members of the Managing

Board and Supervisory Board of Lenzing AG

The remuneration expensed for key management personnel, which

comprises the active members of the Managing Board and Super-

visory Board of Lenzing AG, in line with their functions is summa-

rized below (including changes in provisions):

Remuneration for key management

personnel (expensed) EUR '000

2021 2020

Remuneration for the Managing Board

Basic salary  

Benets in kind and other benets

(in particular use of company vehicles)  

Short-term variable performance bonus

(short-term incentive; STI)

 

Extraordinary remuneration (special bonuses)  

Short-term employee benets  

Long-term variable performance bonus

(long-term incentive; LTI)  

Extraordinary remuneration (special bonuses)  

Other long-term employee benets  

Contributions to multiemployer pension fund  

Post-employment benets  

Compensation for non-competition clauses

and one-o gratuity

 

Termination benets  

Remuneration for the Managing Board  

Remuneration for the Supervisory Board

Short-term employee benets  

Total  

The benchmark for the long-term bonus component of the mem-

bers of the Managing Board (long-term incentive/LTI) consists of

selected key indicators of the Lenzing Group, each over a three-

year calculation period. In addition, the company’s capital market

performance is assessed in comparison with a group of selected

listed companies during these periods.

The employee representatives on the Supervisory Board who were

delegated by the Works Council are entitled to regular compensa-

tion (wage or salary plus severance and jubilee benets) under their

employment contracts in addition to the compensation for their ac-

tivity on the Supervisory Board (in particular attendance fees). This

compensation represents appropriate remuneration for their

role/activities performed in the company.

In line with customary market and corporate practice, Lenzing AG

also grants additional benets, which are considered non-cash

benets, to the members of the Managing Board, selected senior

executives and Supervisory Board members. One example of such

benets is insurance coverage (D&O, accident, legal protection

etc.), whereby the costs are carried by the Lenzing Group. The in-

surers receive total premium payments, i.e. there is no specic al-

location to the Managing Board and the Supervisory Board. In ad-

dition, the members of the Managing Board and selected senior

executives are provided with company vehicles. The members of

104 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 76

the Managing Board and the Supervisory Board are also reim-

bursed for certain costs incurred, above all travel expenses. The

principles of the remuneration system for the Managing Board and

the Supervisory Board are described in detail and disclosed in the

2021 remuneration report of the Lenzing Group.

The members of the Managing Board and Supervisory Board re-

ceived no advances, loans or guarantees. The Lenzing Group has

not entered into any contingencies on behalf of the Managing

Board or Supervisory Board.

Post-employment benefits of EUR 12 thousand were recognized for

former members of the Managing Board of Lenzing AG or their sur-

viving dependents in the form of income on the income statement

and allocations to other comprehensive income (2020:

EUR 607 thousand in the form of expenses). The present value of

the pension provision recognized in this context, after deduction of

the fair value of plan assets (net obligation), amounted to

EUR 6,512 thousand as at December 31, 2021 (December 31, 2020:

EUR 7,285 thousand).

Note 41. Executive Bodies

Members of the Supervisory Board

●

Peter Edelmann

Chairman

●

Patrick Prügger

Deputy Chairman (since April 14, 2021)

●

Stefan Fida

Deputy Chairman (since April 14, 2021)

●

Helmut Bernkopf

●

Christian Bruch

●

Markus Fürst (since April 14, 2021)

●

Franz Gasselsberger

●

Melody Harris-Jensbach (since June 18, 2020)

●

Cord Prinzhorn (April 14, 2021 up to November 3, 2021)

●

Astrid Skala-Kuhmann

●

Veit Sorger

Deputy Chairman (up to April 14, 2021)

●

Felix Fremerey (up to June 18, 2020)

Appointed by the Works Council

●

Johann Schernberger

Chairman of the Group Works Council

Chairman of the Works Committee (up to January 18, 2021)

Chairman of the Works Council for Waged Employees

●

Helmut Kirchmair

Chairman of the Works Committee (since January 18, 2021)

Deputy Chairman of the Works Council for Waged Employees

●

Georg Liftinger

Deputy Chairman of the Works Committee

Chairman of the Works Council for Salaried Employees

●

Herbert Brauneis

Deputy Chairman of the Works Council for Waged Employees

●

Daniela Födinger

Deputy Chairwoman of the Works Council for Salaried

Employees

Members of the Managing Board

●

Cord Prinzhorn

Chairman of the Managing Board (since November 4, 2021)

●

Thomas Obendrauf

Chief Financial Ocer

●

Robert van de Kerkhof

Member of the Managing Board

●

Stephan Siela

Member of the Managing Board (since March 1, 2020)

●

Christian Skilich

Member of the Managing Board (since June 1, 2020)

●

Stefan Doboczky

Chairman of the Managing Board (up to September 30, 2021)

105 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 77

Note 42. Financial guarantee

contracts, contingent assets and

liabilities, other nancial obligations

and legal risks

The Lenzing Group has entered into contingent liabilities of

EUR 4,905 thousand (December 31, 2020: EUR 5,484 thousand),

above all to secure claims related to the sale of certain equity in-

vestments and claims by suppliers, for possible default on sold re-

ceivables (also see note 37 “Factoring“) and for claims by third par-

ties outside the Group. Less important contingent liabilities involve

granted retentions. The reported amounts represent the maximum

payment obligation from the viewpoint of the Lenzing Group, and

there is only a limited potential for recoveries.

The Lenzing Group provides committed credit lines of

EUR 5,379 thousand (December 31, 2020: EUR 8,622 thousand) to

third parties. These credit lines were not used as at December 31,

2021 and December 31, 2020 (also see note 22).

Bank guarantees of EUR 51,703 thousand (December 31, 2020:

EUR 56,021 thousand) are in place for future equity injections of

Lenzing AG for LD Celulose S.A. from 2021 to 2022. These bank

guarantees were not drawn as at December 31, 2021 and Decem-

ber 31, 2020.

The Lenzing Group carries obligations for severance payments and

anniversary benets for former employees of certain sold equity

investments up to the amount of the notional claims at the sale date.

Provisions were recognized for these obligations as at the reporting

date at an amount equal to their present value calculated in ac-

cordance with actuarial principles. Lenzing AG, in particular, has

also assumed liabilities to secure third-party claims against consol-

idated companies; these claims are considered unlikely to be real-

ized. The Managing Board is not aware of any other nancial obli-

gations with a signicant impact on the nancial position and -

nancial performance of the Group.

The obligations arising from outstanding orders for intangible as-

sets and property, plant and equipment amounted to

EUR 248,062 thousand as at December 31, 2021 (December 31,

2020: EUR 354,390 thousand). The Lenzing Group has long-term

purchase obligations related to raw material supplies, in particular

for wood, pulp, chemicals and energy.

A lawsuit was led in a US court against Lenzing AG for unspecied

damages in connection with a former investment. Lenzing AG has

rejected these claims. The management does not consider of dam-

ages to be probable.

As an international corporation, the Lenzing Group is exposed to a

variety of legal and other risks. These risks are related, above all, to

product defects, competition and antitrust law, patent law, tax law,

employees and environmental protection (in particular, for environ-

mental damage at production locations and climate risks). It is im-

possible to predict the outcome of pending or future legal pro-

ceedings, and rulings by the courts or government agencies or set-

tlement agreements can lead to expenses that are not fully covered

by insurance which could have a material impact on the group’s

future nancial position and nancial performance. Additional in-

formation is provided in the risk report of the Lenzing Group’s man-

agement report as at December 31, 2021.

Other Disclosures

106 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 78

Note 43. Group companies

In addition to Lenzing AG, the Lenzing Group includes the follow-

ing companies (list of group companies in accordance with Section

245a Para. 1 in conjunction with Section 265 Para. 2 of the Austrian

Commercial Code):

Group companies 31/12/2021 31/12/2020

Currency Share capital Share in % Share capital Share in %

Consolidated companies

Avit Investments Limited, Providenciales, Turks and Caicos USD - -  

Beech Investment s.r.o., Zlaté Moravce, Slovakia EUR    

BZL – Bildungszentrum Lenzing GmbH, Lenzing, Austria EUR    

LD Celulose S.A., Indianopolis, Brazil BRL    

Lenzing Biocel Paskov a.s., Paskov, Czech Republic CZK    

Lenzing E-commerce (Shanghai) Co., Ltd., Shanghai, China CNY    

Lenzing Elyaf Anonim Şirketi, Istanbul, Turkey TRY    

Lenzing Fibers (Shanghai) Co., Ltd., Shanghai, China USD    

Lenzing Fibers GmbH, Heiligenkreuz, Austria EUR    

Lenzing Fibers Grimsby Limited, Grimsby, UK GBP    

Lenzing Fibers Holding GmbH, Lenzing, Austria EUR    

Lenzing Fibers (Hongkong) Ltd., Hong Kong, China HKD    

Lenzing Fibers Inc., Axis, USA USD    

Lenzing Fibers India Private Limited, Coimbatore, India INR    

Lenzing Fibers Ltd., Manchester, UK GBP    

Lenzing Global Finance GmbH, Munich, Germany EUR    

Lenzing Holding GmbH, Lenzing, Austria EUR    

Lenzing Korea Yuhan Hoesa, Seoul, Republic of Korea KRW    

Lenzing Land Holding LLC., Dover, USA USD    

Lenzing Modi Fibers India Private Limited, Mumbai, India INR    

Lenzing (Nanjing) Fibers Co., Ltd., Nanjing, China USD    

Lenzing Singapore Pte. Ltd., Singapore, Republic of Singapore EUR    

Lenzing Taiwan Fibers Ltd., Taipei, Taiwan TWD    

Lenzing (Thailand) Co., Ltd., Prachinburi, Thailand THB    

Nanjing Fabor Waste Water Treatment Co., Ltd, Nanjing, China

CNY - -  

Penique S.A., Panama, Panama USD - -  

PT. South Pacic Viscose, Purwakarta, Indonesia

IDR    

Pulp Trading GmbH, Lenzing, Austria EUR    

Reality Paskov s.r.o., Paskov, Czech Republic CZK    

Wasserreinhaltungsverband Lenzing – Lenzing AG, Lenzing, Austria

EUR  Membership  Membership

Companies accounted for using the equity method

Associates

EQUI-Fibres Beteiligungsgesellschaft mbH, Kelheim, Germany EUR    

Gemeinnützige Siedlungsgesellschaft m.b.H. für den Bezirk

Vöcklabruck, Lenzing, Austria

EUR    

Lenzing Papier GmbH, Lenzing, Austria EUR    

PT. Pura Golden Lion, Jakarta, Indonesia IDR    

Joint ventures

Hygiene Austria LP GmbH, Wiener Neudorf EUR - -  

LD Florestal S.A., Indianopolis, Brazil BRL    

RVL Reststoverwertung Lenzing GmbH, Lenzing, Austria EUR    

Wood Paskov s.r.o., Paskov, Czech Republic CZK    

Comments:

1) In the 2021 nancial year, the interest in Nanjing Fabor Waste Water Treatment Co., Ltd, Nanjing, China, was merged with Lenzing (Nanjing) Fibers Co., Ltd, Nanjing, China.

2) The share held directly by the Lenzing Group equals 91.87 percent (December 31, 2020: 88.08 percent). A further 8.13 percent of the shares are held indirectly via PT. Pura

Golden Lion, Jakarta, Indonesia, an associate of the Lenzing Group. The total calculated share therefore equals 95.12 percent.

3) The Lenzing Group participates through a membership. It holds 50 percent of the voting rights and can appoint half of the Managing Board members. Since all assets are at-

tributable to the respective landowner under company law, the entity is notionally a separate company (a so-called “silo structure”). Assets located on the Lenzing Group’s land

are therefore included in the consolidation.

4) This investment is not included in the consolidated nancial statements as a subsidiary, even though the Lenzing Group holds 99.9 percent of the voting rights in the company.

In light of the given circumstances, the Lenzing Group does not control this company because its power is limited and because the returns hardly vary or can hardly be inuenced

by the Lenzing Group. Signicant inuence is exercised by the Lenzing Group over the nancial and operating policies of this company, in particular through representation on

management bodies and participation in decision-making processes.

107 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 79

Note 44. Signicant events after the

end of the reporting period

On January 20, 2022, a gradual reduction in the corporate tax rate

in Austria from 25 percent to 23 percent with eect from Janu-

ary 1, 2023 was approved. This reduction does not aect current or

deferred taxes recognized as at December 31, 2021. However, this

change will reduce the group’s future eective tax burden accord-

ingly. If the modied tax rates had been applied for the calculation

of deferred taxes as at December 31, 2021, deferred tax liabilities

would have decreased by EUR 2,708 thousand (see note 31).

Military clashes between Russia and Ukraine have arisen since Feb-

ruary 24, 2022. The Lenzing Group has no investments, other as-

sets or other signicant business relationships in either of these

countries. For this reason, the consolidated nancial statements of

the Lenzing Group as of December 31, 2021 are not aected.

Other than that, the Lenzing Group is not aware of any signicant

events occurring after the reporting date on December 31, 2021

which would have resulted in a dierent presentation of its nancial

position and nancial performance.

Note 45. Authorization of the

consolidated nancial statements

These consolidated nancial statements were approved on

March 1, 2022 (consolidated nancial statements as at Decem-

ber 31, 2020: March 8, 2021) by the Managing Board for review by

the Supervisory Board, presentation to the Annual General Meet-

ing and subsequent publication. The Supervisory Board may re-

quire changes to the consolidated nancial statements as part of

its review.

Lenzing, March 1, 2022

Lenzing Aktiengesellschaft

The Managing Board

Cord Prinzhorn

Chairman of the Managing Board

Thomas Obendrauf

Chief Financial Ocer

Robert van de Kerkhof

Member of the Managing Board

Stephan Siela

Member of the Managing Board

Christian Skilich

Member of the Managing Board

108 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 80

Report on the Consolidated Financial

Statements

Audit Opinion

We have audited the consolidated nancial statements of Lenzing

Aktiengesellschaft, Lenzing, Austria, and its subsidiaries (the

Group), which comprise the consolidated Statement of Financial

Position as at 31 December 2021, and the Consolidated Income

Statement and Consolidated Statement of Other Comprehensive

Income, Consolidated Statement of Changes in Equity and Con-

solidated Statement of Cash Flows for the year then ended, and

the Notes to the Consolidated Financial Statements.

In our opinion, the consolidated nancial statements comply with

the legal requirements and present fairly, in all material respects,

the consolidated nancial position of the Group as at 31 Decem-

ber 2021, and its consolidated nancial performance and consoli-

dated cash ows for the year then ended in accordance with Inter-

national Financial Reporting Standards (IFRSs) as adopted by the

EU, and the additional requirements pursuant to Section 245a UGB

(Austrian Commercial Code).

Basis for our Opinion

We conducted our audit in accordance with the EU Regulation

537/2014 (“AP Regulation”) and Austrian Standards on Auditing.

These standards require the audit to be conducted in accordance

with International Standards on Auditing (ISA). Our responsibilities

under those standards are further described in the “Auditor’s Re-

sponsibilities” section of our report. We are independent of the au-

dited Group in accordance with Austrian company law and profes-

sional regulations, and we have fullled our other responsibilities

under those relevant ethical requirements. We believe that the au-

dit evidence we have obtained up to the date of the auditor’s report

is sucient and appropriate to provide a basis for our audit opinion

on this date.

Key Audit Matters

Key audit matters are those matters that, in our professional

judgment, were of most signicance in our audit of the nancial

statements. These matters were addressed in the context of our

audit of the nancial statements as a whole, however, we do not

provide a separate opinion thereon.

Impairment of Cash-Generating Units (“CGU”)

“Fiber Site China” and “Fiber Site Indonesia”

Refer to note 11

Risk for the nancial statements

In the nancial year 2021 Lenzing Aktiengesellschaft asessed that

there is an indication, that the cash-generating units "Fiber Site

China" and "Fiber Site Indonesia" may be impaired. The estimated

recoverable amounts (impairment test) of both cash-generating

units exceeded their carrying amounts.

The measurement of the recoverable amount of cash-generating

units in accordance with IAS 36 requires assumptions and esti-

mates, such as the estimated future cash ows, as well as the de-

termination of the applicable discount rate.

There is a risk that inappropriate assumptions and estimates used

to measure the recoverable amount could have a signicant impact

on the recoverable amount and therefore the carrying amounts of

the cash-generating units in the consolidated statement of nan-

cial position, as well as the operating result in the consolidated in-

come statement.

Our response

We assessed the impairment tests carried out by the company with

support of our internal valuation experts as follows:

●

To assess the adequacy of the cash ow projections used by

management to measure recoverable amount, we have evalu-

ated managements planning process and discussed the as-

sumptions for growth rates and operating results with man-

agement. Additionally, we have compared these cash ow

projections with the most recent budget approved by the su-

pervisory board as well as the mid-term planning approved by

the managing board.

●

To assess managements historical planning accuracy we have

compared actual nancial gures with prior years cash ow

projections.

●

Our internal valuation experts have assessed the methodology

used for impairment testing for compliance with the applicable

standards. Our experts furthermore compared the assump-

tions, on which the determination of capital cost rates were

based, with market- and industry-specic reference values

and veried the mathematical accuracy of the calculation.

●

Additionally, we have veried whether the descriptions in the

notes to the nancial statements on impairment testing of the

CGUs "Fiber Site China" and "Fiber Site Indonesia" were ap-

propriate.

Auditor’s Report

109 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 81

Valuation of puttable non-controlling interests

Refer to note 3 and note 37

Risk for the Consolidated Financial Statements

The minority shareholder of LD Cellulose S.A, Sao Paulo, Brazil, has

an option to sell its non-controlling interests to Lenzing Aktien-

gesellschaft upon the occurrence of contractually agreed events.

As of December 31, 2021, Lenzing Aktiengesellschaft recognized a

liability at a fair value of EUR 234,409 thousand for these puttable

non-controlling interests. Subsequent measurement of the liability

is carried out using the present access method via retained earn-

ings.

The fair value of the liability for the puttable non-controlling inter-

ests is determined in accordance with the contractual agreement

with the minority shareholder according to a discounted cash ow

method. This requires assumptions and estimates, such as estimat-

ing future cash ows and determining the discount rate to be ap-

plied.

There is a risk for the consolidated nancial statements that inap-

propriate assumptions and estimates could have a signicant im-

pact on the fair value and thus the valuation of the liability for the

puttable non-controlling interests in the consolidated statement of

nancial position and equity.

Our response

We assessed the valuation of puttable non-controlling interests as

follows:

●

We assessed whether the chosen valuation model is consistent

with the contractual agreements for determining the option

exercise price.

●

In order to assess the appropriateness of the cash ows used

in the valuation model, we gained an understanding of the

planning process and discussed the assumptions about

growth rates and operating results with management.

●

We compared the planning data assumed in the valuation

model with the current budget gures approved by the Man-

agement Board and the Supervisory Board and the medium-

term plan.

●

Our internal valuation experts assessed the adequacy of the

valuation model and veried the mathematical accuracy. Our

experts compared the determined country and maturity-

specic capital costs with market and industry-specic

benchmarks.

●

Finally, we assessed whether the explanations on the determi-

nation of the fair value for the liability for puttable non-control-

ling interests in the consolidated nancial statements are ap-

propriate.

Other information

Management is responsible for other information. Other infor-

mation is all information provided in the annual report, other than

the consolidated nancial statements, the group management re-

port, and the auditor's report.

Our opinion on the consolidated nancial statements does not

cover other information and we do not provide any assurance

thereon.

In conjunction with our audit, it is our responsibility to read this

other information and to assess whether, based on knowledge

gained during our audit, it contains any material inconsistencies

with the consolidated nancial statements or any apparent material

misstatement of fact. If we conclude that there is a material mis-

statement of fact in other information, we must report that fact. We

have nothing to report in this regard.

Responsibilities of Management and Audit Committee for

the Consolidated Financial Statements

Management is responsible for the preparation and fair presenta-

tion of the consolidated nancial statements in accordance with

International Financial Reporting Standards (IFRSs) as adopted by

the EU, the additional requirements pursuant to Section 245a UGB

(Austrian Commercial Code) and for such internal controls as man-

agement determines are necessary to enable the preparation of

consolidated nancial statements that are free from material mis-

statement, whether due to fraud or error.

Management is also responsible for assessing the Group's ability to

continue as a going concern, disclosing, as applicable, matters re-

lated to going concern and using the going concern basis of ac-

counting, unless management either intents to liquidate the Group

or to cease operations, or has no realistic alternative but to do so.

The audit committee is responsible for overseeing the Group's

nancial reporting process.

Auditor’s Responsibilities

Our objectives are to obtain reasonable assurance about whether

the consolidated nancial statements as a whole are free from ma-

terial misstatement, whether due to fraud or error, and to issue an

auditor's report that includes our audit opinion. Reasonable assur-

ance represents a high level of assurance, but provides no guaran-

tee that an audit conducted in accordance with the AP Regulation

and Austrian Standards on Auditing (and therefore ISAs), will al-

ways detect a material misstatement, if any. Misstatements may

result from fraud or error and are considered material if, individually

or in aggregate, they could reasonably be expected to inuence

the economic decisions of users taken on the basis of these con-

solidated nancial statements.

As part of an audit in accordance with the AP Regulation and Aus-

trian Standards on Auditing, we exercise professional judgment

and maintain professional skepticism throughout the audit.

Moreover:

●

We identify and assess the risks of material misstatement in the

consolidated nancial statements, whether due to fraud or

error, we design and perform audit procedures responsive to

those risks and obtain sucient and appropriate audit

evidence to serve as a basis for our audit opinion. The risk of

not detecting material misstatements resulting from fraud is

higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misprepresentations

or override of internal control.

●

We obtain an understanding of internal control relevant to the

audit in order to design audit procedures that are appropriate

in the circumstances, but not for the purpose of expressing an

opinion on the eectiveness of the Group's internal control.

110 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 82

●

We evaluate the appropriateness of accounting policies used

and the reasonableness of accounting estimates and related

disclosures made by management.

●

We conclude on the appropriateness of management's use of

the going concern basis of accounting and, based on the audit

evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast signicant doubt

on the Group's ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to

draw attention in our audit report to the respective note in the

consolidated nancial statements. If such disclosures are not

appropriate, we will modify our audit opinion. Our conclusions

are based on the audit evidence obtained up to the date of our

auditor's report. However, future events or conditions may

cause the Group to cease to continue as a going concern.

●

We evaluate the overall presentation, structure and content of

the consolidated nancial statements, including the notes, and

whether the consolidated nancial statements represent the

underlying transactions and events in a manner that achieves

fair presentation.

●

We obtain sucient appropriate audit evidence regarding the

nancial information of the entities and business activities

within the Group to express an opinion on the consolidated

nancial statements. We are responsible for the direction,

supervision and performance of the group audit. We remain

solely responsible for our audit opinion.

●

We communicate with the audit committee regarding,

amongst other matters, the planned scope and timing of our

audit as well as signicant ndings, including any signicant

deciencies in internal control that we identify during our audit.

●

We communicate to the audit committee that we have

complied with the relevant professional requirements in

respect of our independence, that we will report any

relationships and other events that could reasonably aect our

independence and, where appropriate, the related safeguards.

●

From the matters communicated with the audit committee, we

determine those matters that were of most signicance in the

audit i.e. key audit matters. We describe these key audit

matters in our auditor's report unless laws or other legal

regulations preclude public disclosure about the matter or

when in very rare cases, we determine that a matter should not

be included in our audit report because the negative

consequences of doing so would reasonably be expected to

outweigh the public benets of such communication.

Report on Other Legal Requirements

Group Management Report

In accordance with Austrian company law, the group management

report is to be audited as to whether it is consistent with the con-

solidated nancial statements and prepared in accordance with le-

gal requirements.

Management is responsible for the preparation of the group man-

agement report in accordance with Austrian company law and

other legal or regulatory requirements.

We have conducted our audit in accordance with generally ac-

cepted standards on the audit of group management reports.

Opinion

In our opinion, the group management report is consistent with the

consolidated nancial statements and has been prepared in ac-

cordance with legal requirements. The disclosures pursuant to

Section 243a UGB (Austrian Commercial Code) are appropriate.

Statement

Based on our knowledge gained in the course of the audit of the

consolidated nancial statements and our understanding of the

Group and its environment, we did not note any material

misstatements in the group management report.

Additional Information in accordance with

Article 10 AP Regulation

We were elected as auditors at the Annual General Meeting on

April 14, 2021 and were appointed by the supervisory board on April

27, 2021 to audit the nancial statements of Company for the nan-

cial year ending on December 31, 2021.

We have been auditors of the Company, without interruption, since

the consolidated nancial statements as at December 31, 2017.

We declare that our opinion expressed in the "Report on the Con-

solidated Financial Statements" section of our report is consistent

with our additional report to the Audit Committee, in accordance

with Article 11 AP Regulation.

We declare that we have not provided any prohibited non-audit

services (Article 5 Paragraph 1 AP Regulation) and that we have en-

sured our independence throughout the course of the audit, from

the audited Group.

111 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 83

Engagement Partner

The engagement partner on this engagement is Ms Gabriele

Lehner.

Linz, March 01, 2022

KPMG Austria GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

Gabriele Lehner

Austrian Chartered Accountant

This report is a translation of the original report in German, which is solely valid.

The nancial statements, together with our auditor's opinion, may only be published if

the nancial statements and the management report are identical with the audited ver-

sion attached to this report. Section 281 Paragraph 2 UGB (Austrian Commercial Code)

applies.

112 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 84

Declaration of the Managing Board

according to Section 124 (1) No. 3 of

the Stock Exchange Act

We conrm to the best of our knowledge that the consolidated -

nancial statements of the Lenzing Group as at December 31, 2021

that were prepared in accordance with the applicable accounting

standards pursuant to International Financial Reporting Standards

(IFRSs) give a true and fair view of the assets, liabilities, nancial

position and prot or loss of the Lenzing Group and that the group

management report gives a true and fair view of the development

and performance of the business and the position of the Lenzing

Group, together with a description of the principal risks and uncer-

tainties the Lenzing Group faces.

Lenzing, March 1, 2022

Lenzing Aktiengesellschaft

The Managing Board

Cord Prinzhorn

Chairman of the Managing Board

Thomas Obendrauf

Chief Financial Ocer

Robert van de Kerkhof

Member of the Managing Board

Stephan Siela

Member of the Managing Board

Christian Skilich

Member of the Managing Board

Declaration of the Managing Board

113 Annual Financial Report 2021 Lenzing Group

Annual Report 2021 Lenzing Group 85

Key earnings and protability gures

EUR mn 2021 2020 2019 2018 2017

Revenue     

EBITDA (earnings before interest, tax, depreciation and

amortization)

 















EBITDA margin  















EBIT (earnings before interest and tax)  















EBIT margin  















EBT (earnings before tax)     

Net prot/loss for the year  ()   

Earnings per share in EUR     

ROCE (return on capital employed)  ()







 



ROE (return on equity)     

ROI (return on investment)  







 



Key cash ow gures

EUR mn     

Gross cash ow     

Cash ow from operating activities     

Free cash ow () ()   

CAPEX     

Liquid assets as at 31/12     

Unused credit facilities as at 31/12     

Key balance sheet gures

EUR mn as at 31/12     

Total assets     

Adjusted equity     

Adjusted equity ratio     

Net nancial debt     

Net nancial debt / EBITDA  















Net debt     

Net gearing     

Trading working capital     

Trading working capital to annualized group revenue     

Key stock market gures

EUR     

Market capitalization in mn as at 31/12     

Share price as at 31/12     

Dividend per share 



   

Employees     

Number (headcount) as at 31/12     

1) Reclassication of capitalized borrowing costs, net interest from dened benet plans and commitment fees from EBIT/EBITDA to the nancial result (see

note 2).

2) On the basis of proposed distribution of prots.

The above nancial indicators are derived primarily from the IFRS consolidated nancial statements of the Lenzing Group. Additional details are provided in the

section “Notes on the nancial performance indicators of the Lenzing Group”, in the glossary to the Annual Report and in the consolidated nancial statements

of the Lenzing Group. Rounding dierences can occur in the presentation of rounded amounts and percentage rates.

Lenzing Group Five-Year Overview

114 Annual Financial Report 2021 Lenzing Group

2021

Jahres-

abschluss

Inhalt

Bilanz 116

Gewinn- und Verlustrechnung 118

Anhang zum Jahresabschluss 120

Erläuterungen zur Bilanz 123

Erläuterungen zur Gewinn-

und Verlustrechnung 130

Sonstige Angaben 133

Entwicklung des Anlagevermögens 142

Entwicklung der Zuschüsse

der öentlichen Hand 144

Bestätigungsvermerk 145

Erklärung des Vorstandes 148

CHAPTER

115 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 2

Lenzing AG

Bilanz

zum 31. Dezember 2021

Aktiva 31.12.2021 31.12.2020

A. Anlagevermögen EUR TEUR

I. Immaterielle Vermögensgegenstände

1. Rechte  

2. Firmenwert  

 

II. Sachanlagen

1. Grundstücke, grundstücksgleiche Rechte und Bauten,

einschließlich der Bauten auf fremdem Grund

 

2. Technische Anlagen und Maschinen  

3. Andere Anlagen, Betriebs- und Geschäftsausstattung  

4. Anlagen in Bau  

5. Geleistete Anzahlungen  

 

III. Finanzanlagen

1. Anteile an verbundenen Unternehmen  

2. Ausleihungen an verbundene Unternehmen  

3. Beteiligungen  

4. Wertpapiere (Wertrechte) des Anlagevermögens  

5. Sonstige Ausleihungen  

 

 

B. Umlaufvermögen

I. Vorräte

1. Roh-, Hilfs- und Betriebsstoe  

2. Unfertige Erzeugnisse  

3. Fertige Erzeugnisse und Waren  

4. Noch nicht abrechenbare Leistungen  

5. Geleistete Anzahlungen  

 

II. Forderungen und sonstige Vermögensgegenstände

1. Forderungen aus Lieferungen und Leistungen  

davon mit einer Restlaufzeit von mehr als einem Jahr  

2. Forderungen gegenüber verbundenen Unternehmen  

davon mit einer Restlaufzeit von mehr als einem Jahr  

3. Forderungen gegenüber Unternehmen, mit denen

ein Beteiligungsverhältnis besteht

 

davon mit einer Restlaufzeit von mehr als einem Jahr  

4. Sonstige Forderungen und Vermögensgegenstände  

davon mit einer Restlaufzeit von mehr als einem Jahr  

   

III. Wertpapiere

1. sonstige Wertpapiere und Anteile  

IV. Kassenbestand, Guthaben bei Kreditinstituten  

 

C. Rechnungsabgrenzungsposten 4.467.975,75 5.312,6

D. Aktive latente Steuern 13.086.208,49 23 . 24 7, 3

 

116 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 3

Passiva 31.12.2021 31.12.2020

A. Eigenkapital EUR TEUR

I. Eingefordertes, einbezahltes und gezeichnetes Grundkapital   

II. Kapitalrücklagen

1. Gebundene  

2. Nicht gebundene  

III. Gewinnrücklagen

Freie Rücklagen    

IV. Bilanzgewinn, davon Gewinnvortrag EUR 0,00

(31.12.2020: TEUR 26.550,0)  

 

B. Zuschüsse der öentlichen Hand 50.518.350,82 25.183,1

C. Rückstellungen

1. Rückstellungen für Abfertigungen   

2. Rückstellungen für Pensionen  

3. Steuerrückstellungen  

4. Sonstige Rückstellungen  

 

D. Verbindlichkeiten

1. Hybridkapital  

davon mit einer Restlaufzeit von mehr als einem Jahr  

2. Verbindlichkeiten aus Schuldscheindarlehen  

davon mit einer Restlaufzeit von bis zu einem Jahr  

davon mit einer Restlaufzeit von mehr als einem Jahr  

3. Verbindlichkeiten gegenüber Kreditinstituten  

davon mit einer Restlaufzeit von bis zu einem Jahr   

davon mit einer Restlaufzeit von mehr als einem Jahr  

4. Sonstige zinstragende Verbindlichkeiten  

davon mit einer Restlaufzeit von bis zu einem Jahr   

davon mit einer Restlaufzeit von mehr als einem Jahr   

5. Erhaltene Anzahlungen auf Bestellungen   

davon mit einer Restlaufzeit von bis zu einem Jahr   

6. Verbindlichkeiten aus Lieferungen und Leistungen   

davon mit einer Restlaufzeit von bis zu einem Jahr  

7. Verbindlichkeiten gegenüber verbundenen Unternehmen    

davon mit einer Restlaufzeit von bis zu einem Jahr  

davon mit einer Restlaufzeit von mehr als einem Jahr  

8. Verbindlichkeiten gegenüber Unternehmen mit

Beteiligungsverhältnis

 

davon mit einer Restlaufzeit von bis zu einem Jahr  

9. Sonstige Verbindlichkeiten   

davon mit einer Restlaufzeit von bis zu einem Jahr  

davon mit einer Restlaufzeit von mehr als einem Jahr  

davon aus Steuern EUR 581.557,84

(31.12.2020: TEUR 1.194,3)

davon im Rahmen der sozialen Sicherheit

EUR 5.277.740,17 (31.12.2020: TEUR 4.993,9)

 

davon mit einer Restlaufzeit von bis zu einem Jahr    

davon mit einer Restlaufzeit von mehr als einem Jahr  

E. Rechnungsabgrenzungsposten 262.894,39 233,0

 

117 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 4

Lenzing AG

Gewinn- und Verlustrechnung

für den Zeitraum 01. Jänner 2021 bis 31. Dezember 2021

2021 2020

EUR TEUR

1. Umsatzerlöse  

2. Veränderung des Bestandes an fertigen und unfertigen Erzeugnissen  -

3. Andere aktivierte Eigenleistungen  

4. Sonstige betriebliche Erträge:

a) Erträge aus dem Abgang vom und der Zuschreibung zum Anlagevermögen mit Ausnahme

der Finanzanlagen

 

b) Erträge aus der Auösung von Rückstellungen  

c) Übrige  

 

5. Aufwendungen für Material und sonstige bezogene Herstellungsleistungen

a) Materialaufwand - -

b) Aufwendungen für bezogene Leistungen - -

- -

6. Personalaufwand:

a) Löhne - -

aa) davon Erträge aus Zuschüssen iZm Kurzarbeitsbeihilfen EUR 65.712,66 (2020: TEUR 4.142,5)

b) Gehälter - -

aa) davon Erträge aus Zuschüssen iZm Kurzarbeitsbeihilfen EUR 178.645,17 (2020: TEUR 6.499,8)

c) soziale Aufwendungen - -

aa) davon Aufwendungen für Altersversorgung EUR -1.764.928,70 (2020: TEUR -2.901,4)

bb) davon Aufwendungen für Abfertigungen und Leistungen an betriebliche Mitarbeitervorsorgekassen

EUR -5.496.443,55 (2020: TEUR -3.084,1)

cc) davon Aufwendungen für gesetzlich vorgeschriebene Sozialabgaben sowie vom Entgelt abhängige

Abgaben und Pichtbeiträge EUR -56.820.987,00 (2020: TEUR -50.292,8)

- -

7. Abschreibungen auf immaterielle Gegenstände des Anlagevermögens und Sachanlagen

a) Planmäßige Abschreibungen - -

b) Auösung Investitionszuschüsse der öentlichen Hand  

- -

8. Sonstige betriebliche Aufwendungen

a) Steuern, soweit sie nicht unter Zier 19 fallen - -

b) Übrige - -

- -

9. Zwischensumme aus Zier 1 bis 8 (Übertrag)  

1) Umgliederung von Nettozinsen aus leistungsorientierten Plänen vom Personalaufwand in das Finanzergebnis (siehe Abschnitt „Personalaufwand“ und „Finanzergebnis“)

118 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 5

2021 2020

EUR TEUR

9. Zwischensumme aus Zier 1 bis 8 (Übertrag)  

10. Erträge aus Beteiligungen  

davon aus verbundenen Unternehmen EUR 76.926.595,35 (2020: TEUR 73.070,0)

11. Erträge aus anderen Wertpapieren und Ausleihungen des Finanzanlagevermögens  

davon aus verbundenen Unternehmen EUR 15.440.739,08 (2020: TEUR 6.964,3)

12. Sonstige Zinsen und ähnliche Erträge  

davon aus verbundenen Unternehmen EUR 992.323,96 (2020: TEUR 944,5)

13. Erträge aus dem Abgang von und der Zuschreibung zu Finanzanlagen  

davon aus verbundenen Unternehmen EUR 6.708.996,93 (2020: TEUR 0,0)

14. Aufwendungen aus Finanzanlagen - -

a) davon Abschreibungen EUR -3.756.151,81 (2020: TEUR -1.548,9)

b) davon Aufwendungen aus verbundenen Unternehmen EUR 0,00 (2020: TEUR -21.969,0)

15. Zinsen und ähnliche Aufwendungen

- -

davon betreend verbundene Unternehmen EUR -1.283.548,00 (2020: TEUR -672,2)

16. Zwischensumme aus Zier 10 bis 15  

17. Ergebnis vor Steuern (Zwischensumme aus Zier 9 und Zier 16)  

18. Einbringungs- und Verschmelzungsergebnis  

19. Steuern vom Einkommen und vom Ertrag - 

a) davon laufende Steuern EUR -12.389.194,39 (2020: TEUR 2.485,8)

b) davon latente Steuern EUR -10.161.050,95 (2020: TEUR 4.013,9)

20. Ergebnis nach Steuern = Jahresüberschuss  

21. Zuweisung zu Gewinnrücklagen (freie) - -

22. Gewinnvortrag aus dem Vorjahr  

23. Bilanzgewinn  

1) Umgliederung von Nettozinsen aus leistungsorientierten Plänen vom Personalaufwand in das Finanzergebnis (siehe Abschnitt „Personalaufwand“ und „Finanzergebnis“)

119 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 6

Lenzing AG

Anhang zum Jahresabschluss

für das Geschäftsjahr 2021

Allgemeine Angaben

Der Vorstand der Lenzing Aktiengesellschaft (Lenzing AG) hat den

vorliegenden Jahresabschluss zum 31. Dezember 2021 nach den

Vorschriften des österreichischen Unternehmensgesetzbuches

(UGB) in der aktuellen Fassung aufgestellt. Er umfasst das Ge-

schäftsjahr vom 1. Jänner bis zum 31. Dezember 2021.

Die Lenzing AG ist eine börsennotierte Aktiengesellschaft österrei-

chischen Rechts. Sie ist im Firmenbuch beim Handels- als Landes-

gericht Wels, Österreich, unter der Nummer FN 96499 k eingetra-

gen. Ihr Sitz ist in 4860 Lenzing, Werkstraße 2, Österreich. Die Ak-

tien der Lenzing AG sind im Prime Market (seit 18. April 2011) und

im Leitindex ATX (seit 19. September 2011) der Wiener Börse in

Wien, Österreich, gelistet.

Das Kerngeschäft der Lenzing AG liegt in der Erzeugung und Ver-

marktung von botanischen Cellulosefasern. Der zur Erzeugung

notwendige Zellsto wird zu einem großen Teil im eigenen Zell-

stowerk hergestellt und teilweise zugekauft. Der wichtigste Roh-

sto zur Zellstoerzeugung ist Holz, das zugekauft wird.

Bei der Gesellschaft handelt es sich um eine große Kapitalgesell-

schaft.

Die Form der Darstellung wurde bei der Erstellung des vorliegen-

den Jahresabschlusses im Vergleich zum Vorjahr beibehalten.

Die Lenzing AG ist das Mutterunternehmen der Lenzing Gruppe

und erstellt einen Konzernabschluss. Der Konzernabschluss der

Lenzing AG ist beim Firmenbuch Wels hinterlegt, am Sitz der

Gesellschaft in Lenzing erhältlich und auf der Homepage

http://www.lenzing.com abrufbar. Die Hauptaktionärin der

Lenzing AG zum 31. Dezember 2021 ist die B&C Gruppe, welche

direkt oder indirekt mit 50 Prozent plus zwei Aktien (31. Dezember

2020: 50 Prozent plus zwei Aktien) am Grundkapital der

Lenzing AG beteiligt ist. Die unmittelbare Mehrheitsgesellschafte-

rin der Lenzing AG ist die B&C KB Holding GmbH, Wien. Die mit-

telbare Mehrheitsgesellschafterin der Lenzing AG, die einen Kon-

zernabschluss aufstellt und veröentlicht, in den die Lenzing

Gruppe einbezogen ist, ist die B&C Holding Österreich GmbH,

Wien. Das oberste Mutterunternehmen der B&C Gruppe, und so-

mit auch der Lenzing AG, ist die B&C Privatstiftung, Wien.

Die Zahlenangaben im vorliegenden Jahresabschluss und in den

Erläuterungen werden auf die nächsten Tausend gerundet angege-

ben („TEUR“), sofern keine abweichende Angabe erfolgt. Bei Sum-

mierung von gerundeten Beträgen und Prozentangaben können

durch Verwendung automatisierter Rechnungshilfen rundungsbe-

dingte Rechendierenzen auftreten.

Bilanzierungs- und

Bewertungsmethoden

Allgemeine Grundlagen

Die Aufstellung des Jahresabschlusses erfolgte unter Beachtung

der Grundsätze ordnungsmäßiger Buchführung sowie der Gene-

ralnorm des § 222 Abs. 2 UGB, ein möglichst getreues Bild der Ver-

mögens-, Finanz- und Ertragslage des Unternehmens zu vermitteln.

Bei der Erstellung des Jahresabschlusses wurde der Grundsatz der

Vollständigkeit eingehalten.

Bei den Vermögensgegenständen und Schulden wurde der Grund-

satz der Einzelbewertung angewandt.

Das Unternehmen hat dem Vorsichtsgrundsatz Rechnung getragen,

indem insbesondere nur die am Abschlussstichtag verwirklichten

Gewinne ausgewiesen werden. Alle erkennbaren Risiken und dro-

henden Verluste, die bis zum Bilanzstichtag entstanden sind, wur-

den berücksichtigt.

Schätzungen beruhen auf einer umsichtigen Beurteilung. Soweit

statistisch ermittelbare Erfahrungen aus gleich gelagerten Sach-

verhalten vorhanden sind, werden diese bei Schätzungen berück-

sichtigt.

Die im Vorjahr angewandten Bilanzierungs- und Bewertungsme-

thoden wurden im Geschäftsjahr 2021 beibehalten.

Die Geschäftsentwicklung im Geschäftsjahr 2021 hat sich aufgrund

des positiven Marktumfelds deutlich gegenüber dem Vorjahresver-

gleichszeitraum verbessert. Bei der Erstellung des Jahresabschlus-

ses hat der Vorstand die Auswirkungen der COVID-19-Krise be-

rücksichtigt, insbesondere bei Schätzungsunsicherheiten und Er-

messensentscheidungen (etwa im Rahmen der Unternehmenspla-

nung).

In der Berichtsperiode wurden Zuschüsse aus Kurzarbeitsbeihilfen

aufgrund von COVID-19 in Höhe von TEUR 244,4 (2020:

TEUR 10.642,3) erfolgswirksam erfasst.

Aufgrund einer gesicherten Liquiditätssituation, einer weiterhin

starken Position auf den für die Lenzing AG relevanten Märkten so-

wie einem zu erwartendem sukzessiven Abklingen der negativen

Auswirkungen der COVID-19-Krise im Laufe des Jahres 2022 hat

das Management die Einschätzung getroen, dass die Lenzing AG

zum Zeitpunkt seiner Genehmigung über ausreichende Ressour-

cen verfügt, um in absehbarer Zukunft operativ weiter bestehen zu

können. Daher wurde der Jahresabschluss unter Zugrundelegung

der Annahme der Unternehmensfortführung aufgestellt.

120 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 7

Zusätzliche Angaben zu den Auswirkungen der COVID-19-Krise

und den gesetzten Maßnahmen finden sich im Lagebericht im Ab-

schnitt „Geschäftsentwicklung“.

Anlagevermögen

Erworbene immaterielle Vermögensgegenstände und Sachan-

lagen werden mit den Anschaungs- bzw. Herstellungskosten,

vermindert um die planmäßige, nach der linearen Methode vorge-

nommenen Abschreibung angesetzt. Selbst erstellte immaterielle

Vermögensgegenstände werden als Aufwand erfasst.

Die Herstellungskosten von selbsterstellten Sachanlagen umfassen

die Einzelkosten, angemessene Teile der Material- und Fertigungs-

gemeinkosten sowie Aufwendungen für freiwillige soziale Leistun-

gen, für betriebliche Altersversorgung und für Abfertigungen. Vom

Wahlrecht der Aktivierung von Fremdkapitalzinsen wird nicht Ge-

brauch gemacht. Der Rahmen der Nutzungsdauer beträgt für die

einzelnen Anlagegruppen:

Nutzungsdauer in Jahren von bis

Immaterielle Vermögensgegenstände

a) Lizenzen, Know-how und Mietrechte  

b) Software  

c) Firmenwert  

Sachanlagen

a) Gebäude

Wohngebäude  

Geschäfts- und Fabriksgebäude  

b) Technische Anlagen und Maschinen  

c) Andere Anlagen, Betriebs- und

Geschäftsausstattung  

Außerplanmäßige Abschreibungen auf einen zum Abschlussstich-

tag niedrigeren beizulegenden Wert erfolgen, wenn die Wertmin-

derung voraussichtlich von Dauer ist.

Für Firmenwerte, die vor dem 1. Jänner 2016 zugegangen sind,

wurde die bisherige Nutzungsdauer von 15 Jahren beibehalten.

Anteile an verbundenen Unternehmen und Beteiligungen wer-

den mit den Anschaungskosten oder, bei voraussichtlich dauern-

der Wertminderung, mit dem niedrigeren beizulegenden Wert zum

Bilanzstichtag angesetzt.

Zur Beurteilung der Werthaltigkeit von Beteiligungen wird bei Vor-

liegen von Anhaltspunkten für eine Wertminderung grundsätzlich

das Discounted Cash-Flow-Verfahren gemäß dem Fachgutachten

zur Unternehmensbewertung KFS/BW 1 der Kammer der Wirt-

schaftstreuhänder herangezogen. Der beizulegende Wert bzw. der

Unternehmenswert wird aus den mit den gewichteten Kapitalkos-

ten diskontierten geschätzten künftigen Cashows abgeleitet.

Die Cashows werden aus den Planungen bzw. Prognosen abge-

leitet und beruhen auf zukunftsbezogenen Annahmen, im Unter-

nehmensbereich Division Fiber insbesondere auf Preis- und Men-

genentwicklungen beim Absatz, den Produktionsmengen sowie

den dazu notwendigen Kosten speziell für Rohstoe, Energie, Per-

sonal und Steuern. Diese Daten basieren insbesondere auf internen

Annahmen unter Berücksichtigung des erwarteten Marktumfeldes

und der Marktpositionierung sowie auf externen Marktannahmen

aus Marktstudien oder Konjunkturaussichten. Nach dem Detailpla-

nungszeitraum wird basierend auf den Annahmen des letzten Plan-

jahres mit einer ewigen Rente unter Berücksichtigung einer nach-

haltigen langfristigen Wachstumsrate gerechnet.

Als Abzinsungssatz wird ein individuell nach dem Capital Asset Pri-

cing Model ermittelter Mischsatz aus der Fremdkapitalverzinsung

und der Verzinsung des eingesetzten Eigenkapitals herangezogen

(WACC). Dieser Abzinsungssatz spiegelt die gegenwärtigen

Markteinschätzungen und die speziellen Risiken der betroenen

Beteiligungen wider.

Ausleihungen werden mit dem Nominalwert, bei Unverzinslich-

keit mit dem Barwert bzw. bei voraussichtlich dauernder Wertmin-

derung mit dem niedrigeren beizulegenden Wert zum Bilanzstich-

tag angesetzt.

Wertpapiere (Wertrechte) des Anlagevermögens und des Um-

laufvermögens werden mit den Anschaungskosten oder dem

niedrigeren Kurswert zum Bilanzstichtag bewertet.

In den Wertpapieren (Wertrechten) des Anlagevermögens sind

auch Ansprüche aus einer Rückdeckungsversicherung für Pensions-

verpflichtungen enthalten, die in Höhe des Deckungskapitals akti-

viert werden. Die Erträge aus dieser Rückdeckungsversicherung

werden in den Aufwendungen für Altersversorgung erfasst.

Zuschreibungen zu Vermögensgegenständen des Anlagevermö-

gens werden vorgenommen, wenn die Gründe für die außerplanmä-

ßige Abschreibung nicht mehr bestehen. Die Zuschreibung erfolgt

auf maximal den Nettobuchwert, der sich unter Berücksichtigung

der Normalabschreibungen, die inzwischen vorzunehmen gewesen

wären, ergibt. Beim Firmenwert unterbleibt gemäß § 208 Abs. 2

UGB die Zuschreibung.

Umlaufvermögen

Roh-, Hilfs- und Betriebsstoe werden mit den Anschaungs-

kosten nach dem gleitenden Durchschnittspreisverfahren oder

dem niedrigeren beizulegenden Wert am Bilanzstichtag bewertet.

Unfertige Erzeugnisse und fertige Erzeugnisse sind zu Herstel-

lungskosten (im Sinne des § 206 UGB), jedoch höchstens zum

voraussichtlichen Verkaufserlös – abzüglich der bis zum Verkauf

noch anfallenden Kosten – angesetzt. Die Herstellungskosten um-

fassen neben den Einzelkosten auch anteilige Material- und Ferti-

gungsgemeinkosten auf Basis einer Normalauslastung sowie Auf-

wendungen für freiwillige soziale Leistungen, für betriebliche Alters-

versorgung und für Abfertigungen. Aufwendungen für Fremdkapi-

talzinsen sowie allgemeine Verwaltungs- und Vertriebskosten wer-

den nicht aktiviert. Wirtschaftliche und technische Risiken werden

durch Abschläge angemessen berücksichtigt.

Forderungen und sonstige Vermögensgegenstände werden

gemäß dem strengen Niederstwertprinzip angesetzt. Forderungen

werden einzeln bewertet. Falls Risiken hinsichtlich der Einbringlich-

keit bestehen, werden Einzelwertberichtigungen gebildet. Bei der

Ermittlung der Höhe der Einzelwertberichtigung werden erhaltene

Sicherheiten, wie Bankgarantien und Kreditversicherungen, ange-

messen berücksichtigt. Ist eine Forderung gänzlich uneinbringlich,

wird die Forderung mit 100 Prozent wertberichtigt (auf Basis des

Nettobetrages).

121 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 8

Zuschreibungen zu Vermögensgegenständen des Umlaufvermö-

gens werden vorgenommen, wenn die Gründe für die Abschrei-

bung nicht mehr bestehen.

Betreend die Bewertung von Forderungen in Fremdwährungen

verweisen wir auf den Punkt Fremdwährungsumrechnung.

Die gemäß Emissionszertikategesetz unentgeltlich zugeteilten

Emissionszertikate werden in der Bilanz entsprechend der

AFRAC-Stellungnahme „Bilanzierung von CO2-Emissionszertika-

ten gemäß UGB“ vom Dezember 2015 dargestellt. Emissionszerti-

kate werden mit dem Marktwert zum Zeitpunkt der Zuteilung in

den sonstigen Forderungen und Vermögensgegenständen aktiviert.

Die Dierenz zwischen dem Zeitwert und dem von der Gesell-

schaft für die Anschaung aufgewendeten Betrag wird in den Zu-

schüssen der öentlichen Hand eingestellt. Die aus dem aktuellen

Geschäftsjahr und dem Vorjahr nicht verbrauchten Emissionszerti-

kate belaufen sich auf insgesamt 1.412.116 Stück (31. Dezember

2020: 1.246.821 Stück).

Betreend die Bewertung von Guthaben bei Kreditinstituten in

Fremdwährungen wird auf die unter dem Punkt Fremdwährungs-

umrechnung beschriebene Vorgehensweise verwiesen.

Latente Steuern werden gemäß § 198 Abs. 9 und 10 UGB nach

dem bilanzorientierten Konzept und ohne Abzinsung auf Basis des

aktuellen Körperschaftsteuersatzes von 25 Prozent gebildet. Das

Wahlrecht zum Ansatz von aktiven latenten Steuern auf Verlustvor-

träge wird ab dem Geschäftsjahr 2020 ausgeübt.

Rückstellungen

Rückstellungen für Pensionen, Abfertigungen und Jubiläums-

gelder werden im Einklang mit der AFRAC-Stellungnahme „Rück-

stellungen für Pensions-, Abfertigungs-, Jubiläumsgeld- und ver-

gleichbare langfristig fällige Ve

rpichtungen nach den Vorschriften

des Unternehmensgesetzbuches“ nach versicherungsmathemati-

schen Grundsätzen entsprechend den Vorschriften des IAS 19

„Leistungen an Arbeitnehmer“, wie dieser in der EU anzuwenden

ist, unter Anwendung der Projected-Unit-Credit-Method (laufendes

Einmalprämienverfahren) berechnet. Dabei werden die erwarteten

Versorgungsleistungen auf den gesamten Zeitraum der Beschäfti-

gung verteilt. Zukünftige Gehalts- und Pensionssteigerungen sowie

Fluktuationsabschläge werden berücksichtigt. Versicherungsma-

thematische Gewinne und Verluste werden zur Gänze im Perioden-

aufwand in der Periode erfasst, in der sie anfallen. Die in der Bilanz

erfasste leistungsorientierte Verpichtung aus einem Versorgungs-

plan stellt den Barwert der leistungsorientierten Verpichtung dar.

Änderungen der oben genannten Personalrückstellungen werden

in der Gewinn- und Verlustrechnung im Personalaufwand ausge-

wiesen, mit Ausnahme der Aufwendungen aus der Aufzinsung die-

ser Rückstellungen, welche im Finanzergebnis dargestellt werden.

Übersteigen in einem Geschäftsjahr die Verminderungen insge-

samt die Zuweisungen an die jeweiligen Personalrückstellungen,

wird der positive Saldo im Posten Erträge aus der Auösung von

Rückstellungen ausgewiesen. Zahlungen für beitragsorientierte

Verpichtungen werden im Personalaufwand erfasst.

In den sonstigen Rückstellungen werden unter Beachtung des

Vorsichtsprinzips alle zum Zeitpunkt der Bilanzerstellung erkenn-

baren Risiken und der Höhe sowie dem Grunde nach ungewisse

Verbindlichkeiten mit den Beträgen berücksichtigt, die nach ver-

nünftiger unternehmerischer Beurteilung erforderlich sind. Bei der

Bewertung werden Rückgrisansprüche auf andere Parteien ange-

messen berücksichtigt. Langfristige Rückstellungen werden mit ei-

nem marktüblichen und laufzeitadäquaten Zinssatz abgezinst.

Verbindlichkeiten

Verbindlichkeiten werden mit dem Erfüllungsbetrag angesetzt.

Die Bewertung von Verbindlichkeiten in Fremdwährungen wird un-

ter dem Punkt „Fremdwährungsumrechnung“ erläutert.

Fremdwährungsumrechnung

Bestehen Sicherungsgeschäfte in Bezug auf eine Währung, so wer-

den auf diese Währung lautende monetäre Posten bis zum Nomi-

nale der Sicherungsgeschäfte mit einem Kurs umgerechnet, der

dem gewogenen Durchschnitt aus den Terminkursen der Siche-

rungsgeschäfte entspricht.

Soweit das Nominale der monetären Posten über das Nominale

der Sicherungsgeschäfte hinausgeht und sofern keine Sicherungs-

geschäfte bestehen, so werden auf diese Währung lautende mo-

netäre Posten entsprechend dem imparitätischen Realisationsprin-

zip mit dem Kurs zum Zeitpunkt der Ersterfassung, im Fall eines

Kursverlustes aber mit dem Stichtagskurs umgerechnet.

Folgende wesentliche Kurse wurden für die Währungsumrechnung

in Euro herangezogen:

Fremdwährungskurse

Forderungen 31.12.2021 31.12.2020

Stichtagskurs EUR/USD  

Stichtagskurs EUR/CNY  

Durchschnittlicher Sicherungskurs EUR/CNY  

Stichtagskurs EUR/BRL  

Verbindlichkeiten 31.12.2021 31.12.2020

Stichtagskurs EUR/USD  

122 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 9

Aktiva

Anlagevermögen

Die Aufgliederung des Anlagevermögens und seine Entwicklung

im Berichtsjahr sind im Anlagenspiegel angeführt.

Immaterielle Vermögensgegenstände und

Sachanlagen

Der Posten Rechte beinhaltet zum Großteil ein Mitbenützungs-

recht an der Abwasserreinigungsanlage des Wasserreinhaltungs-

verbandes Lenzing - Lenzing AG sowie das Recht auf Energiebe-

zug von der RVL Reststoverwertung Lenzing GmbH, einer von der

Gesellschaft gemeinsam mit der Energie AG Oberösterreich Um-

welt Service GmbH betriebenen Reststoverwertungsanlage.

In den immateriellen Vermögensgegenständen sind solche imma-

teriellen Vermögensgegenstände, die von einem verbundenen

Unternehmen erworben wurden, mit einem Buchwert von

TEUR 327,7 (31. Dezember 2020: TEUR 414,4

) enthalten. In den

Geschäftsjahren 2021 und 2020 gab es keine Zugänge von imma-

teriellen Vermögensgegenständen von verbundenen Unternehmen.

Der Firmenwert wird planmäßig, nach der linearen Methode über

die Nutzungsdauer von 15 Jahren abgeschrieben. Die gewählte

Nutzungsdauer orientiert sich an der durchschnittlichen Restlauf-

zeit der im Zuge der Übernahme übernommenen Verpichtungen.

Nach Unternehmensbereichen ergibt sich folgende Aufgliederung

der Zugänge zu den immateriellen Vermögensgegenständen

und Sachanlagen:

Unternehmensbereich 2021 2020

TEUR TEUR

Division Fiber  

Division Pulp  

Others  

Gesamt  

Die Abgänge von immateriellen Vermögensgegenständen und von

Sachanlagen hatten Anschaungs- und Herstellungskosten von

TEUR 3.208,7 (2020: TEUR 4.531,7) und einen Buchwert von

TEUR 286,9 (2020: TEUR 187,0).

1) Änderung Vorjahreswert

Finanzanlagen

Die Auistung der Anteile an verbundenen Unternehmen der

Lenzing AG kann im Abschnitt „Direkte Beteiligungen zum

31.12.2021“ dieses Anhangs entnommen werden.

Die Zugänge bei den Anteilen an verbundenen Unternehmen

betreen im Wesentlichen eine Kapitalerhöhung der PT. South Pa-

cic Viscose in Höhe von TEUR 98.985,4 (2020: TEUR 0,0),

Lenzing (Thailand) Co., Ltd. in Höhe von TEUR 29.713,8 (2020:

TEUR 16.949,9) sowie einen Zuschuss für die Kapitalerhöhung der

indirekten Tochtergesellschat Lenzing (Nanjing) Fibers Co., Ltd. in

Höhe von TEUR 7.613,3 (2020: TEUR 10.595,1). Weiters wurde an

die LD Celulose S.A. eine Kapitalerhöhung in Höhe von

TEUR 17.185,7 (2020 TEUR 221.003,7) geleistet. Im Geschäftsjahr

2020 wurden die Anteile in Höhe von TEUR 88.106,0 an der indi-

rekten Tochtergesellschaft PT. South Pacic Viscose von den di-

rekten Tochtergesellschaften Avit Investments Limited sowie Peni-

que S.A. erworben, sowie die Anteile an der indirekten Tochterge-

sellschaft Lenzing Technik GmbH in die Lenzing AG eingebracht.

Als gesellschaftsrechtliche Begleitmaßnahme wurde im Jahr 2020

von der Lenzing AG ein Gesellschaftszuschuss in Höhe von

TEUR 28.100,0 an die direkte Tochtergesellschaft Pulp Tra-

ding GmbH geleistet.

Die Abgänge bei den Anteilen an verbundenen Unternehmen

betreen mit TEUR 72.491,2 die Avit Investments Limited sowie die

Penique S.A. mit TEUR 22.158,0, welche aufgrund der Liquidation

im Geschäftsjahr 2021 abgegangen sind.

Aufgrund eines Anhaltspunktes für Wertminderung wurde der bei-

zulegende Wert der PT. South Pacic Viscose ermittelt, dieser

ergab eine ausreichende Deckung des Buchwertes.

Der Abgang bei den Beteiligungen in Höhe von TEUR 1.669,6 be-

trit den Verkauf der Hygiene Austria GmbH.

Die Ausleihungen setzen sich wie folgt zusammen:

Ausleihungen Bilanzwert

mit einer

Restlaufzeit

bis zu 1 Jahr

mit einer

Restlaufzeit

über 1 Jahr

TEUR TEUR TEUR

Ausleihungen an

verbundene Unternehmen

  

Vorjahr   

Sonstige Ausleihungen   

Vorjahr   

Gesamt   

Vorjahr   

Bei den Ausleihungen gegenüber verbundenen Unternehmen

waren die wesentlichen Zugänge gegenüber der Lenzing (Thai-

land) Co., Ltd. in Höhe von TEUR 168.809,0 sowie der Pulp Trading

Erläuterungen zur Bilanz

123 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 10

GmbH in Höhe von TEUR 4.197,5, und die wesentlichen Abgänge

gegenüber der Pulp Trading GmbH in Höhe von TEUR 59.493,8,

der Lenzing Fibers Inc. in Höhe von TEUR 20.488,3 und der

PT. South Pacific Viscose in Höhe von TEUR 20.478,0.

In den Sonstigen Ausleihungen sind ausstehende Kaufpreisfor-

derungen bzw. langfristige Darlehen aus der teilweisen Veräuße-

rung der EQUI-Fibres Beteiligungsgesellschaft mbH im Jahr 2016

gegenüber dem Käufer (einschließlich dessen Tochterunterneh-

men) in Höhe von TEUR 10.678,2 (31. Dezember 2020:

TEUR 10.678,2) enthalten. Sie sind bankmäßig verzinst. Die Ein-

bringlichkeit wurde insbesondere auf Basis der wirtschaftlichen

Lage beurteilt. Im Vorjahr wurde eine Abschreibung in Höhe von

TEUR 1.384,0 vorgenommen. Die Lenzing AG besitzt ein Pfand-

recht an den übrigen Anteilen der EQUI-Fibres Beteiligungsgesell-

schaft mbH. Darüber hinaus wurde dem Käufer ein Kreditrahmen

in Höhe von bis zu TEUR 5.379,0 (2020: TEUR 8.622,0

) eingeräumt,

der im Fall von vordenierten nachteiligen Veränderungen der Rah-

menbedingungen der EQUI-Fibres Beteiligungsgesellschaft mbH

am Absatzmarkt bis längstens 31. Dezember 2025 in Anspruch ge-

nommen werden kann. Dieser Rahmen war per 31. Dezember 2021

sowie im Vorjahr per 31. Dezember 2020 nicht ausgenützt. Der Ab-

gang bei den sonstigen Ausleihungen betrit im Wesentlichen das

vergebene Darlehen an die Hygiene Austria LP GmbH in Höhe von

TEUR 2.000,0.

Die Zugänge bei den Wertpapieren (Wertrechte) des Anlage-

vermögens betreen im Wesentlichen den Raieisen Nachhaltig-

keit Diversied Fonds in Höhe von TEUR 6.482,7, der zur Deckung

der Pensionsrückstellung dient. Der Raieisen Nachhaltigkeit

Diversied Fonds veranlagt nach den Vorschriften des Pensions-

kassengesetzes und im Wesentlichen in Euro-Anleihen per Jahres-

ende. Die Lenzing AG hat im Jänner 2021 100 Prozent der Anteile

an einer Versicherungszelle, der White Rock Insurance (Europe)

Protected Cell Company Limited, La Valletta, Malta, erworben.

Diese Gesellschaft verfügt über eine Versicherungskonzession und

ermöglicht der Lenzing AG, ihre betrieblich notwendigen Versi-

cherungen eektiver zu administrieren. Zum Erwerbsstichtag ver-

fügte die Versicherungszelle über keine wesentlichen Vermögens-

werte und Schulden.

Die Abgänge bei den Wertpapieren (Wertrechte) des Anlagever-

mögens betreen im Wesentlichen den Großanlegerfonds GF82 in

Höhe von TEUR 5.971,8. Im Geschäftsjahr wurde ein Fondsergeb-

nis aus 2021 in Höhe von TEUR 66,7 (2020: TEUR 68,8) ausge-

schüttet.

Ebenfalls beinhaltet dieser Posten Ansprüche aus Rückdeckungs-

versicherungen von TEUR 2.598,0 (31. Dezember 2020:

TEUR 2.729,5) betreend Pensionsverpichtungen und sonstige

Wertpapiere (Wertrechte) des Anlagevermögens von

TEUR 6.483,7 (31. Dezember 2020: TEUR 7.600,3).

1) Änderung Vorjahreswert

Umlaufvermögen

Die Roh-, Hilfs- und Betriebsstoe beinhalten im Wesentlichen

Holz und Zellsto für die Faserproduktion, Chemikalien für sämtli-

he Geschäftsbereiche sowie diverse Kleinmaterialien und Ersatz-

teile.

Die Bestände an unfertigen und fertigen Erzeugnissen betref-

fen im Wesentlichen Fasern und Faserzellsto.

Von den Forderungen aus Lieferungen und Leistungen sind

TEUR 58.022,4 (31. Dezember 2020: TEUR 46.177,9) nach Abzug

von Selbstbehalten versichert und in Höhe von TEUR 5.685,0

(31. Dezember 2020: TEUR 4.597,0) durch Garantien sowie durch

Akkreditive in Höhe von TEUR 29.638,7 besichert. Wechselmäßige

Verbriefungen liegen weder zum 31. Dezember 2021 noch zum

31. Dezember 2020 vor.

Es wurde zum Bilanzstichtag eine pauschale Wertberichtigung in

Höhe von TEUR 393,9 (31.12.2020: TEUR 0,0) gebildet.

Forderungen gegenüber verbundenen Unternehmen resultie-

ren aus Lieferungen und Leistungsverrechnungen in Höhe von

TEUR 78.556,3 (31. Dezember 2020: TEUR 69.451,4) sowie sonsti-

gen Verrechnungen von TEUR 6.335,5 (31. Dezember 2020:

TEUR 3.819,5) und Forderungen aus Steuerumlagen in Höhe von

TEUR 6.743,1 (31. Dezember 2020: TEUR 16.573,9) sowie Forde-

rungen aus Dividenden in Höhe von TEUR 6.400,0 (31. Dezember

2020: TEUR 0,0).

Soweit Forderungen und Verbindlichkeiten zwischen verbundenen

Unternehmen in wirtschaftlicher Betrachtungsweise einander auf-

rechenbar gegenüberstehen, werden diese bei gleichem Gläubiger

und Schuldner gegeneinander aufgerechnet.

Forderungen gegenüber Unternehmen, mit denen ein Beteili-

gungsverhältnis b

, resultieren im Wesentlichen aus der

Leistungsverrechnung an die Lenzing Papier GmbH.

Die sonstigen Forderungen und Vermögensgegenstände bein-

halten:

Sonstige Forderungen und

Vermögensgegenstände

31.12.2021 31.12.2020

TEUR TEUR

Guthaben aus der Verrechnung mit dem

Finanzamt

 

Emissionszertikate  

Abgrenzung von Kostenersätzen  

An- und Vorauszahlungen  

Übrige  

Gesamt  

In den sonstigen Forderungen und Vermögensgegenständen sind

Erträge in Höhe von TEUR 32.157,7 (31. Dezember 2020:

TEUR 45.903,9) enthalten, die erst nach dem Bilanzstichtag zah-

lungswirksam werden.

Es wurde zum 31. Dezember 2021 unter dem Posten sonstige For-

derungen die „COVID-19-Investitionsprämie“ in Höhe von

TEUR 628,5 aktiviert. Diese wird mittels der Bruttomethode bilan-

ziert und unter den Zuschüssen öentlicher Hand entsprechend

124 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 11

der Nutzungsdauer der geförderten Anlagen aufgelöst und wird

offen mit den Abschreibungen saldiert

Im Posten Wertpapiere des Umlaufvermögens wurden im Ge-

schäftsjahr EUR-Geldmarktfonds in Höhe von TEUR 344.514,9 er-

worben. Es handelt sich hierbei um Wertpapiere, die hochliquide

sind und nur einem unwesentlichen Wertschwankungsrisiko unter-

liegen.

Aktive latente Steuern

Die latenten Steuern zum Bilanzstichtag wurden für temporäre Dif-

ferenzen zwischen dem steuerlichen und unternehmensrechtli-

chen Wertansatz für folgende Posten gebildet:

Stand der temporären Dierenzen 31.12.2021 31.12.2020

TEUR TEUR

Sachanlagen und immaterielle

Vermögensgegenstände

- 

Finanzanlagen  

Forderungen  

Unversteuerte Rücklagen und Zuschüsse der

öfentlichen Hand - -

Rückstellungen  

Finanzverbindlichkeiten  

Verbindlichkeiten  -

Betrag Gesamtdierenzen  

Daraus resultierende aktive latente

Steuern per 31.12. (25%)  

Verlustvortrag  

Gesamte aktive Steuerlatenz  

Im Posten Rückstellungen sind im Wesentlichen zeitliche Unter-

schiede zwischen dem unternehmensrechtlichen und dem steuer-

rechtlichen Wertansatz bei Rückstellungen für Sozialkapital (Pensi-

onen und Abfertigungen) und Jubiläumsgelder sowie Unterschiede

bei den Wertansätzen von sonstigen Rückstellungen einbezogen.

Temporäre Unterschiede aufgrund von steuerlichen Siebentelab-

schreibungen (§ 12 Abs. 3 Z 2 KStG) sind mit TEUR 14.844,9

(31. Dezember 2020: TEUR 17.253,1) im Posten Finanzanlagen ent-

halten.

Weitere temporäre Standunterschiede ergeben sich aufgrund der

Inanspruchnahme der steuerlichen degressiven Abschreibung.

Diese betragen zum 31. Dezember 2021 TEUR 21.532,1 (31. Dezem-

ber 2020: TEUR 2.971,0).

Die unversteuerten Rücklagen sind entsprechend RÄG 2014 in den

Gewinnrücklagen enthalten (Umgliederung per 31. Dezember

2015). Temporäre Unterschiede zum steuerrechtlichen Wertansatz

führen zu passiven latenten Steuern (vor Saldierung).

Die Lenzing AG und die in den Gruppenvertrag mit der B&C Hol-

ding Österreich GmbH einbezogenen Konzerngesellschaften ha-

ben im Vorjahr insgesamt einen steuerlichen Verlust realisiert, für

den im Abschluss 2020 aktive latente Steuern in Höhe von

TEUR 3.255,9 gebildet wurden. Diese Verlustvorträge sind im Ge-

schäftsjahr 2021 vollständig mit dem laufenden steuerlichen Ge-

winn verrechnet worden.

Entwicklung der latenten Steuern 31.12.2021 31.12.2020

TEUR TEUR

Stand am 01.01. (aktive latente Steuern)  

Zugang aus Umgründung  

Erfolgswirksame Veränderung - 

Verlustvortrag - 

Stand am 31.12. (aktive latente Steuern)  

Passiva

Eigenkapital

Das Grundkapital der Lenzing AG zum 31. Dezember 2021 beträgt

EUR 27.574.071,43 (31. Dezember 2020: EUR 27.574.071,43) und ist

in 26.550.000 Stückaktien (31. Dezember 2020: 26.550.000) ein-

geteilt. Der auf eine Stückaktie entfallende Anteil am Grundkapital

beträgt etwa EUR 1,04. Jede Stammaktie ist am Kapital im gleichen

Ausmaß beteiligt und vermittelt die gleichen Rechte und Pichten,

insbesondere das Recht auf eine beschlossene Dividende und das

Stimmrecht in der Hauptversammlung. Der Ausgabebetrag der Ak-

tien ist voll einbezahlt. Andere Klassen von Anteilen sind nicht aus-

gegeben worden.

Mit Hauptversammlungsbeschluss vom 12. April 2018 – unter

gleichzeitiger Aufhebung der diesbezüglichen Hauptversamm-

lungsbeschlüsse vom 22. April 2015 – wurde der Vorstand neuer-

lich ermächtigt, mit Zustimmung des Aufsichtsrates das Grundka-

pital innerhalb von fünf Jahren ab Eintragung in das Firmenbuch –

allenfalls in Tranchen – gegen Bar- und/oder Sacheinlage um bis

zu EUR 13.787.034,68 durch Ausgabe von bis zu 13.274.999 Stück-

aktien zu erhöhen („genehmigtes Kapital“). Dieses genehmigte Ka-

pital wurde im Firmenbuch am 23. Mai 2018 eingetragen.

Darüber hinaus wurde der Vorstand mit Hauptversammlungsbe-

schluss vom 12. April 2018 – unter gleichzeitiger Aufhebung der

diesbezüglichen Hauptversammlungsbeschlüsse vom 22. April

2015 – ermächtigt mit Zustimmung des Aufsichtsrates bis spätes-

tens 12. April 2023 auch in mehreren Tranchen Wandelschuldver-

schreibungen auszugeben, die ein Bezugs- oder Umtauschrecht bzw.

eine Bezugs- oder Umtauschpflicht auf bis zu 13.274.999 Aktien ge-

währen bzw. vorsehen („bedingtes Kapital“). Die Bedienung kann

über das bedingte Kapital und/oder über eigene Aktien erfolgen.

Mit Hauptversammlungsbeschluss vom 18. Juni 2020 – unter

gleichzeitiger Aufhebung der diesbezüglichen Hauptversamm-

lungsbeschlüsse vom 12. April 2018 – wurde der Vorstand für die

Dauer von 30 Monaten vom Tag der Beschlussfassung an ermäch-

tigt, mit Zustimmung des Aufsichtsrates eigene Aktien der Gesell-

schaft zu erwerben. Dabei dürfen die von der Gesellschaft erwor-

benen eigenen Aktien 10 Prozent des Grundkapitals der Gesell-

schaft nicht überschreiten. Der beim Rückerwerb zu leistende Ge-

genwert muss innerhalb einer Bandbreite von +/-25 Prozent zum

gewichteten durchschnittlichen Börsenschlusskurs der letzten

20 Börsetage vor Beginn des entsprechenden Rückkaufpro-

gramms der Lenzing Aktie liegen. Der Vorstand wurde zudem

ermächtigt, erworbene eigene Aktien ohne weiteren Hauptver-

sammlungsbeschluss mit Zustimmung des Aufsichtsrates einzuzie-

hen (samt Ermächtigung des Aufsichtsrates Änderungen der

Satzung, die sich durch die Einziehung der Aktien ergeben, zu be-

125 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 12

schließen) oder wieder zu veräußern und die Veräußerungsbedin-

gungen festzusetzen. Diese Ermächtigung kann ganz oder teil-

weise und in Verfolgung eines oder mehrerer Zwecke durch die

Gesellschaft, durch ein Tochterunternehmen (§ 189a Z7 UGB) oder

für Rechnung der Gesellschaft durch Dritte ausgeübt werden. Wei-

ters wurde der Vorstand für die Dauer von fünf Jahren vom Tag der

Beschlussfassung an ermächtigt, für die Veräußerung eigener Ak-

tien mit Zustimmung des Aufsichtsrates eine andere gesetzlich zu-

lässige Art der Veräußerung als über die Börse oder ein öentliches

Angebot, auch unter Ausschluss des Wiederkaufrechts (Bezugs-

rechts) der Aktionäre, zu beschließen und die Veräußerungsbedin-

gungen festzusetzen.

Der Vorstand hat von den am bzw. bis 31. Dezember 2021 beste-

henden Ermächtigungen zur Erhöhung des Grundkapitals, zur Aus-

gabe von Wandelschuldverschreibungen und zum Rückkauf eige-

ner Aktien in der Berichtsperiode keinen Gebrauch gemacht.

Die gebundenen Kapitalrücklagen dürfen nur zum Ausgleich ei-

nes Bilanzverlustes verwendet werden. Sie wurden durch Zufuhr

von Mitteln gebildet, welche von den Aktionären über das Grund-

kapital hinaus zugeossen sind.

Die freien Gewinnrücklagen können jederzeit aufgelöst und als

Teil des Bilanzgewinnes an die Aktionäre ausgeschüttet werden.

Zuschüsse der öentlichen Hand

Die Investitionszuschüsse der öentlichen Hand einschließlich

der Emissionszertikate sowie Investitionsprämien werden als

gesonderter Hauptposten zwischen Eigenkapital und Fremdkapital

ausgewiesen. Die Aufgliederung ist aus der Übersicht über die Ent-

wicklung der Zuschüsse der öentlichen Hand ersichtlich.

Die Auösung der Investitionszuschüsse der öentlichen Hand so-

wie Investitionsprämien erfolgt entsprechend der Nutzungsdauer

der geförderten Anlagen und wird oen mit den Abschreibungen

saldiert. Der

Zuschuss aus Emissionsze

rtikaten wurde dem Ver-

brauch entsprechend aufgelöst.

Rückstellungen

Die sonstigen Rückstellungen entwickeln sich wie folgt:

2021 Rückstellungen für

Stand

31.12.2020

Verbrauch Auösung Zuführung Umgliederung

Stand

31.12.2021

TEUR TEUR TEUR TEUR TEUR TEUR

Drohende Verluste  - -   

Schadensfälle      

Noch nicht abgerechnete Lieferungen/Leistungen  - -  - 

Jubiläumsgelder  -    

Sonderzahlungen  - -  - 

Resturlaube  -   - 

Sonstige Personalaufwendungen  - -   

Übrige  - -   

Gesamt  - -  - 

2020 Rückstellungen für

Stand

31.12.2019

Verbrauch Auösung Zuführung

Zugang aus

Verschmelzung

Stand

31.12.2020

TEUR TEUR TEUR TEUR TEUR TEUR

Drohende Verluste  - -   

Schadensfälle  - -   

Noch nicht abgerechnete Lieferungen/Leistungen  - -   

Jubiläumsgelder  -    

Sonderzahlungen  - -   

Resturlaube  -    

Sonstige Personalaufwendungen  - -   

Übrige  - -   

Gesamt  - -   

Die Rückstellungen für drohende Verluste betreen im Wesent-

lichen Vorsorgen für nachteilige Verträge und Verpichtungen aus

zu erbringenden Infrastrukturleistungen.

Die übrigen Rückstellungen betreen vor allem verbrauchte

Emissionszertikate, Prüfungs- und Beratungskosten sowie Nach-

lässe, Rabatte und Provisionen.

126 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 13

Die Entwicklung der Rückstellung für Pensionen, Abfertigungen

und Jubiläumsgelder stellt sich wie folgt dar:

2021 Rückstellungen für Pensionen Abfertigungen

Jubiläums-

gelder

TEUR TEUR TEUR

In der Bilanz erfasste Werte:

Rückstellung zum 31.12.2020    

Periodenaufwand   

Auszahlungen - - -

Rückstellung zum 31.12.2021   

Wert nach § 14 EStG   

Aufwand im Geschäftsjahr:

Laufender Dienstzeitaufwand   

Zinsaufwand   

Realisierung

versicherungsmathematischer

Verlust (+) / Gewinn (-)

  

Periodenaufwand   

Annahmen zur Berechnung der erwarteten

leistungsorientierten Ansprüche zum 31.12.2021:

Diskontierungszinssatz      

Pensionssteigerung

biszu

  - -

Gehaltssteigerung      

Pensionseintrittsalter

Frauen/Männer/Schwerarbeiter

//

Jahre

//Jahre

//

Jahre

Fluktuationsabschlag - - - 

2020 Rückstellungen für Pensionen Abfertigungen

Jubiläums-

gelder

TEUR TEUR TEUR

In der Bilanz erfasste Werte:

Rückstellung zum 31.12.2019   

Zugang aus Verschmelzung der

Lenzing Technik GmbH   

Periodenaufwand   

Auszahlungen - - -

Rückstellung zum 31.12.2020   

Wert nach § 14 EStG   

Aufwand im Geschäftsjahr:

Laufender Dienstzeitaufwand   

Zinsaufwand   

Realisierung

versicherungsmathematischer

Verlust (+) / Gewinn (-)  - -

Periodenaufwand   

Annahmen zur Berechnung der erwarteten

leistungsorientierten Ansprüche zum 31.12.2020:

Diskontierungszinssatz      

Pensionssteigerung

biszu

 

- -

Gehaltssteigerung      

Pensionseintrittsalter

Frauen/Männer/Schwerarbeiter

//

Jahre //Jahre

//

Jahre

Fluktuationsabschlag - - - 

Am 1. Jänner 2020 wurden durch die Verschmelzung der Lenzing

Technik GmbH mit der Lenzing AG die Personalverpichtungen

gegenüber den Mitarbeiter/innen übernommen.

Für die Berechnung der Pension-, Abfertigungs- und Jubiläums-

geldrückstellung wurde ein Abzinsungssatz verwendet, der aus

erstrangigen festverzinslichen Industrieanleihen mit AA-Rating

nach dem Standard eines international tätigen Versicherungsma-

thematikers abgeleitet wurde. Anleihen, die im Vergleich zu den

anderen Anleihen in ihrer Risikoeinstufung deutlich höhere oder

niedrigere Zinsen aufweisen („statistische Ausreißer“), wurden da-

bei nicht berücksichtigt. Die Währung und die Laufzeiten der zu

Grunde gelegten Anleihen orientieren sich an der Währung und den

voraussichtlichen Laufzeiten der zu erfüllenden Verpflichtungen.

Die geschätzten Gehalts- und Pensionssteigerungen, die auch für

die Zukunft als realistisch angesehen werden, wurden aus einer

Durchschnittsbetrachtung der vergangenen Jahre abgeleitet.

Das für die Berechnung herangezogene Pensionsantrittsalter rich-

tet sich nach den jeweiligen gesetzlichen Bestimmungen. Für die

Berechnung der leistungsorientierten Pensionspläne werden im

Geschäftsjahr die biometrischen Rechnungsgrundlagen

AVÖ 2018 P-Rechnungsgrundlagen für die Pensionsversicherung

Angestellte verwendet.

Die Berechnung der Abfertigungs- und Jubiläumsgeldrückstellung

erfolgt unter Berücksichtigung der unternehmensspezischen

Fluktuationsraten. Diese werden nach Dienstjahren gestaelt er-

mittelt und beruht auf den durchschnittlichen Austrittszahlen der

letzten fünf Jahre. Bei der Berechnung der Rückstellungen für die

leistungsorientierten Abfertigungspläne werden dabei nur Austritte

mit Abfertigungsanspruch berücksichtigt.

In der Lenzing AG gibt es sowohl beitrags- als auch leistungsorien-

tierte Pensionsvorsorgepläne. Bei beitragsorientierten Pensionszu-

sagen treen die Gesellschaft nach Zahlung der vereinbarten Prä-

mien keine Verpichtungen mehr. Eine Rückstellung wird daher

nicht angesetzt.

Den leistungsorientierten Pensionsverpichtungen wird durch die

Bildung von Pensionsrückstellungen Rechnung getragen. Das Ri-

siko im Zusammenhang mit diesen leistungsorientierten Pensions-

plänen verbleibt bei der Lenzing AG. Die Berechnung erfolgt nach

versicherungsmathematischen Grundsätzen entsprechend den

Vorschriften des IAS 19 „Leistungen an Arbeitnehmer“.

Mitarbeiter/innen, deren Dienstverhältnisse österreichischem

Recht unterliegen und nach dem 31. Dezember 2002 begonnen

haben, erwerben keine Abfertigungsansprüche. Für sie sind Bei-

träge in Höhe von 1,53 Prozent des Lohnes bzw. Gehaltes an eine

Mitarbeitervorsorgekasse zu zahlen.

Aufgrund kollektivvertraglicher Regelungen ist die Lenzing AG ver-

pichtet, Jubiläumsgeldzahlungen zu leisten, sofern ein Arbeitneh-

mer für eine bestimmte Dauer im Unternehmen beschäftigt war.

Diese Zahlungen basieren auf der Höhe des Bezuges zum Zeit-

punkt des betreenden Dien

stne

hmerjubiläums. Die bei den be-

treenden Jubiläen voraussichtlich zu zahlenden Beträge werden

auf die Dienstzeit bis zu den Jubiläen verteilt. Der Barwert des auf

die Dienstzeit bis zum Bilanzstichtag entfallenden Betrages wird

rückgestellt. In der Lenzing AG besteht eine Umwandlungsoption

127 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 14

für die Mitarbeiter, das Dienstjubiläum in Zeitguthaben umwandeln

zu können.

Die Verpichtungen gegenüber ehemaligen Mitarbeitern des ver-

kauften Geschäftsbereiches Kunststomaschinen (nunmehr SML

Maschinengesellschaft mbH) und Folie (nunmehr Lenzing Plastics

GmbH & Co KG) sowie Bildungszentrum (nunmehr BZL-Bildungs-

zentrum Lenzing GmbH) werden bis zur Höhe der ktiven Ansprü-

che zum Zeitpunkt des Verkaufs bzw. der Ausgliederung weiterhin

von der Gesellschaft getragen. Der Barwert zum Bilanzstichtag

wird in Bezug auf diese Verpichtungen rückgestellt, wobei für die

Barwertermittlung angenommen wird, dass die Abfertigungen mit

dem Übertritt der betreenden Dienstnehmer in den Ruhestand

fällig werden.

Mit dem Vertrag vom 27. September 2021 wurde die indische Be-

triebstätte (LIN) von der Lenzing AG in die indische Tochtergesell-

schaft Lenzing Fibers India Private Ltd

mit Wirkung vom 31. Au-

gust 2021 übertragen. Dabei wurden insbesondere die Personal-

verpichtungen für die betroenen Mitarbeiter/innen von der

Lenzing Fibers India Private Ltd. übernommen. In Summe ergab

sich daraus ein Ausgliederungsgewinn iHv TEUR 27,8.

Verbindlichkeiten

In den Verbindlichkeiten sind folgende Verbindlichkeiten mit ei-

ner Restlaufzeit über 5 Jahren enthalten:

Verbindlichkeiten 31.12.2021 31.12.2020

TEUR TEUR

Hybridkapital  

Verbindlichkeiten aus Schuldscheindarlehen  

Verbindlichkeiten gegenüber Kreditinstituten  

Sonstige zinstragende Verbindlichkeiten  

Verbindlichkeiten gegenüber verbundenen

Unternehmen

 

Das Hybridkapital beträgt zum 31. Dezember 2021

TEUR 500.000,0 (31. Dezember 2020: TEUR 500.000,0). Es ist

keine vertragliche Restlaufzeit vorgesehen.

Im Dezember 2020 wurde eine nachrangige unbefristete Anleihe

mit einem Nominalvolumen von TEUR 500.000,0 und einer Verzin-

sung von 5,75% p.a. emittiert. Die Anleihe hat eine unendliche

(ewige) Laufzeit und kann erstmals am 7. Dezember 2025 durch die

Lenzing AG gekündigt und getilgt werden. Die Investoren haben

kein Kündigungsrecht. Falls die Anleihe nicht gekündigt wird, wird

die Anleihe ab dem 8. Dezember 2025 mit einem veränderten-

Zinssatz verzinst (dann geltender 5-Jahres Swapsatz plus Marge

von 11,208%).

Die Zinsen sind nachträglich am 7. Dezember eines jeden Jahres

zur Zahlung fällig, sofern sich die Lenzing AG nicht entscheidet, die

betreende Zinszahlung aufzuschieben. Ausstehende aufgescho-

bene Zinszahlungen müssen unter bestimmten Umständen bezahlt

werden, insbesondere wenn die Hauptversammlung der

Lenzing AG beschließt, eine Dividende zu leisten.

Die Verbindlichkeiten aus Schuldscheindarlehen stellen sich

wie folgt dar:

Verbindlichkeiten aus Schuldscheindarlehen per 31.12.2021

Fälligkeit

Ursprungs-

laufzeit

Buchwert Verzinsung

bis Jahre TEUR

2022/05   x

2022/11   x

Restlaufzeit von bis zu 1 Jahr 

2024/12   x

2024/12   variabel

2025/05   x

2025/11   x

2026/12   x

2026/12   variabel

2026/12   x

2029/12   variabel

2029/12   x

2034/12   x

Restlaufzeit von mehr als 1 Jahr 



Verbindlichkeiten aus Schuldscheindarlehen per 31.12.2020

Fälligkeit

Ursprungs-

laufzeit

Buchwert Verzinsung

bis Jahre TEUR

Restlaufzeit von bis zu 1 Jahr 

2022/05   x

2022/05   variabel

2022/11   x

2024/12   x

2024/12   variabel

2025/05   x

2025/11   x

2026/12   x

2026/12   variabel

2026/12   x

2029/12   variabel

2029/12   x

2034/12   x

Restlaufzeit von mehr als 1 Jahr 



Im Geschäftsjahr 2021 hat die Lenzing Gruppe keine weiteren

Schuldscheindarlehen begeben. Im Vorjahr belief sich das Emissi-

onsvolumen auf TEUR 114.000,0 und TUSD 20.000,0 (Buchwert

TEUR 18.001,8). Es wurde eine Laufzeit von 5 bis 7 Jahren mit xer

und variabler Verzinsung vereinbart.

Von den bestehenden Schuldscheinen hat die Lenzing AG im Ge-

schäftsjahr 2021 TEUR 42.000,0 (2020: TEUR 23.500,0) vorzeitig

zurückgezahlt.

Die sonstigen zinstragenden Verbindlichkeiten enthalten ERP-

Kredite, Forschungsförderungskredite und Verbindlichkeiten aus

Finanzierungsleasing.

128 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 15

Von den Verbindlichkeiten gegenüber Kreditinstituten und

sonstigen zinstragenden Verbindlichkeiten von TEUR 613.470,0

(31. Dezember 2020: TEUR 502.257,3) sind wie im Vorjahr keine

durch Grundpfandrechte und sonstige dingliche Sicherheiten be-

sichert.

Von den Verbindlichkeiten gegenüber verbundenen Unternehmen

betreen TEUR 10.190,2 (31. Dezember 2020: TEUR 6.499,3) Liefe-

rungen und Leistungsverrechnungen, TEUR 493,0 (31. Dezember

2020: TEUR 92.226,9) sonstige Verrechnungen, davon betreen

zum 31. Dezember 2021 TEUR 0 (31. Dezember 2020:

TEUR 88.000,0) die Kaufpreisverbindlichkeit für den Erwerb von

43,81 % an der PT. South Pacic Viscose sowie TEUR 28.043,8

(31. Dezember 2020: TEUR 7.625,6) Verbindlichkeiten aus Steu-

erumlagen. Weiters bestehen Verbindlichkeiten aus Darlehen in

Höhe von TEUR 24.000,0 (31. Dezember 2020: TEUR 38.000,0)

gegenüber der Lenzing Global Finance GmbH aus der Weiterver-

rechnung der vereinnahmten nanziellen Mittel aus den von der

Lenzing Global Finance GmbH im Geschäftsjahr 2015 und 2012

begebenen Schuldscheinen.

In den sonstigen Verbindlichkeiten sind Aufwendungen in Höhe

von TEUR 15.178,5 (31. Dezember 2020: TEUR 19.445,7) enthalten,

die erst nach dem Bilanzstichtag zahlungswirksam werden. Davon

betreffen TEUR 1.890,4 (31. Dezember 2020: TEUR 1.890,4) noch

nicht bezahlte Zinsen für die unbefristete Anleihe und TEUR 3.809,4

(31. Dezember 2020: TEUR 4.484,5) Verbindlichkeiten für das

Altersteilzeitmodell gem. § 27 ALVG.

Rechnungsabgrenzungsposten

Die passive Rechnungsabgrenzung beinhaltet im Wesentlichen

transitorisch abgegrenzte Zinsenzuschüsse des Umwelt- und des

Forschungsförderungsfonds.

Haftungsverhältnisse

Haftungsverhältnisse liegen in folgendem Umfang vor:

Haftungsverhältnisse 31.12.2021 31.12.2020

TEUR TEUR

Bürgschafts- und Garantieerklärungen für den

Wasserreinhaltungsverband Lenzing - Lenzing AG

für den Bau der zweiten und dritten Ausbaustufe

der Abwasserreinigungsanlage

 

Haftungsübernahmen für verbundene Unternehmen  

Haftungsübernahmen gegenüber Dritten  

Gesamt  

Die Lenzing AG hat harte Patronatserklärungen, die in ihrer Höhe

unbestimmt sind, abgegeben. Die Lenzing AG verpichtet sich da-

rin, die Lenzing Fibers (Grimsby) Limited sowie die Lenzing Fibers

Inc. mit ausreichenden Mitteln auszustatten, damit sie ihre nanzi-

ellen Verpichtungen aus abgeschlossenen Energielieferverträgen

erfüllen können. Die Patronatserklärungen können von Seiten der

Lenzing AG gekündigt werden.

Des Weiteren besteht eine Garantieerklärung der Lenzing AG, die

in ihrer Höhe unbestimmt ist, in der sie garantiert, dass die Pulp

Trading GmbH ihre nanziellen Verpichtungen aus einem abge-

schlossenen Liefervertrag erfüllt.

Darüber hinaus bestehen Garantieerklärungen der Lenzing AG, in

der sie garantiert, dass die Lenzing (Thailand) Co., Ltd. ihre Bank-

verpichtungen bis maximal TUSD 36.000,0 – d.s. TEUR 31.762,8

(31.12.2020: bis maximal TUSD 36.000,0 – d.s. TEUR 29.313,6) und

bis maximal TEUR 16.000,0 erfüllt.

Des Weiteren bestehen Garantieerklärungen der Lenzing AG, in

der sie garantiert, dass die LD Celulose S.A. ihre Bankverpichtun-

gen bis maximal TUSD 114.200,0 – d.s. TEUR 100.758,8 (31.12.2020:

bis maximal TUSD 0,0 – d.s. TEUR 0,0) und bis maximal

TEUR 25.000,0 (31.12.2020: TEUR 0,0) erfüllt.

Die Lenzing AG ist zu Kapitaleinschüssen in die Versicherungszelle

White Rock Insurance (Europe) Protected Cell Company Limited

verpichtet, falls die nanziellen Mittel in der Zelle durch Scha-

denszahlungen an die Lenzing Töchter nicht ausreichen. Die maxi-

male Einschusspicht pro Jahr sind TEUR 16.000,0.

129 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 16

Umsatzerlöse

Der Umsatz setzt sich wie folgt zusammen:

Umsatzerlöse nach Märkten 2021 2020

TEUR TEUR

Österreich  

Europa inkl. Türkei ohne Österreich  

Asien  

Amerika  

Sonstige  

Gesamt  

Umsatzerlöse nach Bereichen 2021 2020

TEUR TEUR

Division Fiber  

Division Pulp  

Others  

Gesamt  

Sonstige betriebliche Erträge

Die übrigen sonstigen betrieblichen Erträge beinhalten:

Übrige sonstige betriebliche Erträge 2021 2020

TEUR TEUR

Forschungs- Lehrlings- und Bildungsprämien  

Beiträge des österreichischen

Forschungsförderungsfonds  

Auösung von Wertberichtigungen  

Auösung von Zuschüssen

(Emissionszertikaten)  

Fremdwährungsdierenzen  

Übrige  

Gesamt  

Personalaufwand

Die Aufwendungen für Altersversorgung (inkl. Rückstellungs-

dotierungen und -auösungen sowie Erträgen aus der Rückde-

ckungsversicherung) setzen sich wie folgt zusammen:

Aufwendungen für 2021 2020

TEUR TEUR

Beitragsorientierte Pläne

(Pensionskassenbeiträge)  

Leistungsorientierte Pläne - 



Gesamt  

1) Umgliederung von Nettozinsen in Höhe von TEUR 225,0 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

Die Aufwendungen für Altersversorgung (inkl. Rückstellungsdotie-

rungen und -auösungen sowie Erträgen aus der Rückdeckungs-

versicherung) verteilen sich wie folgt:

Aufwendungen für

2021

2020

TEUR TEUR

Mitglieder des Vorstandes

Aktive Mitglieder  

Ehemalige Mitglieder und deren

Hinterbliebene

- 



Leitende Arbeitnehmer/innen  

Andere Arbeitnehmer/innen  



Gesamt  

1) Umgliederung von Nettozinsen in Höhe von TEUR 63,3 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

2) Umgliederung von Nettozinsen in Höhe von TEUR 161,7 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

Die Lenzing AG hat eine Rückdeckungsversicherung für Pensions-

ansprüche abgeschlossen. Der Aufwand aus diesen Pensionszusa-

gen (exkl. Rückstellungsdotierungen und -auösungen) in Höhe

von TEUR 701,8 (2020: TEUR 688,8) sowie der Ertrag aus der Rück-

deckungsversicherung von TEUR 151,9 (2020: TEUR 149,5) sind im

Posten Aufwendungen für Altersversorgung enthalten.

Die Aufwendungen für Abfertigungen und Leistungen an be-

triebliche Mitarbeitervorsorgekassen (inkl. Rückstellungsdotie-

rungen und -auösungen der Rückstellung für Abfertigungen) set-

zen sich wie folgt zusammen:

Aufwendungen für

2021

2020

TEUR TEUR

Abfertigungen (inkl. freiwilligen Abfertigungen)  



Leistungen an betriebliche

Mitarbeitervorsorgekassen

 

Gesamt  

1) Umgliederung von Nettozinsen in Höhe von TEUR 607,5 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

Erläuterungen zur Gewinn

und Verlustrechnung

130 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 17

Die Aufwendungen für Abfertigungen und Leistungen an betriebli-

che Mitarbeitervorsorgekassen (inkl. Rückstellungsdotierungen

und -auösungen) verteilen sich wie folgt:

Aufwendungen für 2021 2020

TEUR TEUR

Mitglieder des Vorstandes

Aktive Mitglieder  

Leitende Arbeitnehmer/innen  



Andere Arbeitnehmer/innen  



Gesamt  

1) Umgliederung von Nettozinsen in Höhe von TEUR 6,3 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

2) Umgliederung von Nettozinsen in Höhe von TEUR 601,2 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

Die Aufwendungen für Jubiläumsgelder (inkl. Rückstellungs-

dotierungen und -auösungen) verteilen sich wie folgt:

Aufwendungen für 2021 2020

TEUR TEUR

Löhne  



Gehälter  



Soziale Aufwendungen  

Gesamt  

1) Umgliederung von Nettozinsen in Höhe von TEUR 59,9 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

2) Umgliederung von Nettozinsen in Höhe von TEUR 119,8 aus leistungsorientierten

Plänen vom Personalaufwand in das Finanzergebnis

Abschreibungen

Die Abschreibungen auf immaterielle Gegenstände des Anla-

gevermögens und Sachanlagen beinhalten die planmäßigen Ab-

schreibungen in Höhe von TEUR 76.783,6 (2020: TEUR 76.572,6).

Die Erträge aus der Auösung der Investitionszuschüsse der öf-

fentlichen Hand vermindern die Abschreibungen in Höhe von

TEUR 847,9 (2020: TEUR 805,2).

Sonstige betriebliche Aufwendungen

Die übrigen sonstigen betrieblichen Aufwendungen umfassen:

Übrige sonstige betriebliche

Aufwendungen

2021 2020

TEUR TEUR

Vertriebsaufwendungen

(inkl. Werbeaufwendungen)

 

Instandhaltungen und Fremdleistungen  

Konzernleistungen  

Rechts-, Prüfungs- und Beratungsaufwendungen  

Versicherungsaufwendungen  

Miet- und Leasingaufwendungen  

Gebühren, Spesen und sonstige Beiträge  

Schulung der Belegschaft  

Abfallentsorgung  

Reise- und Fahrtkosten  

Fremdwährungsdierenzen  

Sonstige Aufwendungen  

Gesamt  

In den sonstigen Aufwendungen sind vor allem Aufwendungen für

Patente und Lizenzen, allgemeine Verwaltungskosten, Wertberich-

tigungen, Aufwendungen für den Verbrauch von Büromaterial, Auf-

wendungen des Aufsichtsrates, Aufwendungen für Schutzartikel

und Schutzkleidung sowie der Verbrauch von Lebensmitteln der

werkseigenen Küche enthalten.

Finanzergebnis

Die Erträge aus Beteiligungen betreen im Wesentlichen Divi-

denden der Pulp Trading GmbH in Höhe von TEUR 62.000,0 (2020:

TEUR 37.300,0), der Lenzing Fibers Holding GmbH von

TEUR 14.400,0 (2020: TEUR 35.167,6), des BZL – Bildungszentrum

Lenzing GmbH in Höhe von TEUR 525,0 (2020: TEUR 600,0) der

Lenzing Papier GmbH in Höhe von TEUR 600,00 (2020: TEUR 0,0)

und der EQUI-Fibres Beteiligungsgesellschaft mbH in Höhe von

TEUR 250,0 (2020: TEUR 0,0).

In den Erträgen aus anderen Wertpapieren und Ausleihungen

des Finanzanlagevermögens sind Erträge aus Zinsforderungen

an verbundene Unternehmen von TEUR 15.440,7 (2020:

TEUR 6.964,3) erfasst.

Sonstige Zinsen und ähnliche Erträge resultieren im Wesent-

lichen aus der Aufzinsung von Ausleihungen in Höhe von

TEUR 985,5 (2020: TEUR 944,5) und aus Guthaben bei Kreditinsti-

tuten von TEUR 61,0 (2020: TEUR 54,2).

Die Erträge aus dem Abgang von und der Zuschreibung zu

Finanzanlagen enthalten im Wesentlichen Fremdwährungsge-

winne bzw. Fremdwährungseekte auf Ausleihungen in Höhe von

TEUR 15.085,4 und Erträge aus der Liquidation der Penique S.A in

Höhe von TEUR 6.079,4 und Avit Investments Limited in Höhe von

TEUR 629.6, sowie die Zuschreibung von Ausleihungen in Höhe

von TEUR 600,0. Im Vorjahr waren Erträge aus dem Verkauf der

Beteiligung der WWE Wohn- und Wirtschaftspark Entwicklungs-

gesellschaft m.b.H. in Höhe von TEUR 750,0. enthalten.

131 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 18

Die Aufwendungen aus Finanzanlagen beinhalten im Abschrei-

bungen von Beteiligungen in Höhe von TEUR 1.669,6 (2020:

TEUR 0,0) sowie Abschreibungen von Ausleihungen und zugehö-

rigen Zinsforderungen in Höhe von TEUR 2.086,5 (2020:

TEUR 1.466,0) und Abschreibungen von Wertpapieren des Umlauf-

vermögens in Höhe von TEUR 1.000,0 (2020: TEUR 0,0).

Die Einbringung der Anteile an der Lenzing Technik GmbH im Jahr

2020 durch die Pulp Trading GmbH erfolgte zum unternehmens-

rechtlichen Buchwert in Höhe von EUR 6.942,7 und ergibt einen

Einbringungsgewinn. Aus der Verschmelzung der Lenzing Tech-

nik GmbH auf die Lenzing AG ergibt sich ein Verschmelzungsge-

winn in Höhe von TEUR 13.452,0. Dem unternehmensrechtlichen

Beteiligungsbuchwert an der Lenzing Technik GmbH in Höhe von

TEUR 6.942,7 stand ein unternehmensrechtliches Eigenkapital der

Lenzing Technik GmbH zum 1. Jänner 2020 (= 31. Dezember 2019)

von TEUR 20.394,7 gegenüber.

Im Geschäftsjahr 2021 wurden zur verbesserten Darstellung die

Nettozinsen aus leistungsorientierten Plänen vom Personalauf-

wand in das Finanzergebnis in Höhe von TEUR 718,7 (2020:

TEUR 1.012,2) umgegliedert.

Steuern vom Einkommen und vom Ertrag

Die laufenden Steuern vom Einkommen und vom Ertrag setzen

sich wie folgt zusammen:

Laufende Steuern vom Einkommen und

vom Ertrag 2021 2020

TEUR TEUR

Körperschaftsteuer aus der Gruppenbesteuerung  

Steuergutschrift vom Gruppenträger - -

Steuerumlagen der Gruppenmitglieder   

Steuerumlagen an Gruppenmitglieder - - 

Sonstige Steuern vom Einkommen und vom Ertrag  

Gesamt  -

In der Position Steuergutschrift vom Gruppenträger sind auch Be-

träge aus Vorperioden enthalten; dies führt im Geschäftsjahr 2021

zu einem Steuerertrag in Höhe von TEUR 747,1 (2020: TEUR 24,1).

Der im Vorjahr aus Verlustvorträgen aktivierte latente Steuerertrag

in Höhe von TEUR 3.255,9 wurde im Geschäftsjahr 2021 gänzlich

mit laufenden steuerlichen Gewinnen verrechnet. Weiters wurde

ein latenter Steueraufwand für die Verminderung der aktiven laten-

ten Steuern in Höhe von TEUR 6.905,1 (2020: latenter Steuerertrag

in Höhe von TEUR 758,0) erfasst.

Die sonstigen Steuern vom Einkommen und vom Ertrag enthalten

wie im Vorjahr im Wesentlichen Körperschaftsteuern aus Vorperi-

oden und ausländische Quellensteuern.

132 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 19

Angaben zu sonstigen nanziellen

Verpichtungen und

außerbilanziellen Geschäften

Verpichtungen aus der Nutzung von in der Bilanz nicht ausgewie-

senen Sachanlagen liegen aufgrund von Leasing-, Pacht- und

Mietverträgen in folgendem Umfang vor:

Nutzungsverpichtungen 31.12.2021 31.12.2020

TEUR TEUR

Im Folgejahr  

In den folgenden fünf Jahren  

Verpichtungen aus oenen Bestellungen für die Lieferung von

Sachanlagen liegen in folgender Höhe vor:

Bestellobligo 31.12.2021 31.12.2020

TEUR TEUR

Bestellobligo für Investitionsvorhaben  

Davon gegenüber verbundenen Unternehmen  

Es gibt es rechtlich unverbindliche Erklärungen der Lenzing AG,

Tochtergesellschaften mit ausreichend nanziellen Mitteln auszu-

statten („weiche Patronatserklärungen“), die sich nicht an be-

stimmte Personen richten.

Die Bankgarantien für Verbindlichkeiten aus laufenden Geschäfts-

beziehungen betragen zum 31. Dezember 2021 TEUR 1.937,0

(31. Dezember 2020: TEUR 1.357,8).

Für die zukünftigen Eigenkapitaleinschüsse der Lenzing AG in die

LD Celulose S.A. im Jahr 2022 bestehen Bankgarantien in Höhe

von TEUR 55.143,5 (31. Dezember 2020: TEUR 64.489,0). Diese

Bankgarantien waren zum 31. Dezember 2021 nicht gezogen.

Vor einem US-Gericht wurde eine Klage auf nicht bezierte Scha-

denersatzansprüche in Zusammenhang mit einer ehemaligen Be-

teiligung gegen die Lenzing AG eingebracht. Die Lenzing AG hat

diese Ansprüche zurückgewiesen. Eine Leistung von Schadener-

satzzahlungen wird vom Management als nicht wahrscheinlich ein-

geschätzt.

Verkauf von Forderungen / Factoring

Es bestehen Factoring-Vereinbarungen, aufgrund derer Banken

zum Ankauf bestimmter Forderungen aus Lieferungen und Leis-

tungen der Lenzing Gruppe über ein monatlich revolvierendes

Nominalvolumen verpichtet sind. Die Lenzing Gruppe ist zum

Verkauf dieser Forderungen berechtigt. Die Vereinbarungen haben

eine unbestimmte Laufzeit; jede Partei hat das Recht, die Verein-

barungen mit einer Frist aufzukündigen und dann auslaufen zu las-

sen. Die Factoring-Vereinbarungen haben per 31. Dezember 2021

ein maximal ausnutzbares Nominalvolumen von insgesamt

TEUR 50.000,0 (31. Dezember 2020: TEUR 50.000,0). Diese sind

seit dem Geschäftsjahr 2017 stillgelegt.

Sonstige Angaben

133 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 20

Verwendung von derivativen

Finanzinstrumenten

Die Lenzing AG setzt Devisentermingeschäfte sowie Zinswäh-

rungsderivate als Sicherungsgeschäfte ein, um Zins- und Wäh-

rungsrisiken aus dem operativen Geschäft zu vermindern. Die De-

visentermingeschäfte werden jährlich im Vorhinein auf Basis der

voraussichtlichen Umsatzerlöse bzw. Materialaufwendungen in

der betreenden Fremdwährung festgelegt. Die Zinswährungsde-

rivate dienen zur Absicherung des Zins- und Währungsrisikos eines

Schuldscheindarlehens in USD mit variabler Verzinsung.

Zum Bilanzstichtag bestanden folgende Devisentermingeschäfte

und Zinswährungsderivate:

31.12.2021

Beizulegender Wert



Art der derivativen

Finanzinstrumente

Nominale

Sicherungs-

zeitraum

positiv negativ Buchwert Bilanzposten

FW 1.000 bis TEUR TEUR TEUR

Devisentermingeschäfte

CNY/CNH-Verkauf / EUR-Kauf CNY/CNH  /  - 

BRL-Verkauf / EUR-Kauf BRL  /  - -

übrige

Rückstellungen

USD-Kauf / EUR-Verkauf USD  /    -

Summe  - -

Zinswährungsderivate

USD-Kauf / EUR-Verkauf USD  /  -  -

Nettoposition -

1) Der Nominalwert wird als Bruttovolumen ausgewiesen

2) beizulegender Wert: + = Forderung / - = Verbindlichkeit aus Sicht der Lenzing AG

31.12.2020

Beizulegender Wert



Art der derivativen

Finanzinstrumente

Nominale

Sicherungs-

zeitraum

positiv negativ Buchwert Bilanzposten

FW 1.000 bis TEUR TEUR TEUR

Devisentermingeschäfte

CNY/CNH-Verkauf / EUR-Kauf CNY/CNH  /  - -

übrige

Rückstellungen

BRL-Verkauf / EUR-Kauf BRL  /  - -

übrige

Rückstellungen

CZK-Verkauf / EUR-Kauf CZK  /  -  -

Summe  - -

Zinswährungsderivate

USD-Kauf / EUR-Verkauf USD  /  -  -

Nettoposition -

1) Der Nominalwert wird als Bruttovolumen ausgewiesen.

2) beizulegender Wert: + = Forderung / - = Verbindlichkeit aus Sicht der Lenzing AG

Die in den obigen Tabellen angegebenen beizulegenden Werte der

derivativen Finanzinstrumente entsprechen den Marktwerten zum

Bilanzstichtag. Sie wurden unter Anwendung anerkannter nanz-

mathematischer und ggf. statistischer Bewertungsmodelle und ak-

tueller Marktparameter zum Bilanzstichtag durch Banken, andere

externe Partner bzw. intern ermittelt.

134 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 21

Bei den beizulegenden Werten der Sicherungsgeschäfte handelt

es sich um unrealisierte Gewinne bzw. Verluste, die sich mit den

gegenläugen Verlusten bzw. Gewinnen aus den dazugehörigen

Grundgeschäften ausgleichen.

In Anwendung der AFRAC-Stellungnahme „Die unternehmens-

rechtliche Bilanzierung von Derivaten und Sicherungsinstrumen-

ten“ vom Dezember 2020 werden zum Bilanzstichtag dokumen-

tierte Sicherungsbeziehungen (Bewertungseinheiten) zwischen

Devisentermingeschäften bzw. Zinswährungsderivaten, die als Si-

cherungsinstrumente dienen, und Grundgeschäften zur Absiche-

rung von Fremdwährungs- bzw. Zinsrisiken gebildet. Liegt eine

derartige Bewertungseinheit vor, ist ein Derivat am Bilanzstichtag

nicht gesondert zu bewerten. Bewertungsobjekt ist vielmehr das

bereits bilanzierte abgesicherte Grundgeschäft (Fremdwährungs-

forderung bzw. -verbindlichkeit, bzw. die variabel verzinste Ver-

bindlichkeit) zusammen mit dem Sicherungsgeschäft (Devisenter-

mingeschäft bzw. Zinswährungsswap).

Zur Absicherung gegen Zins- und Währungsrisiken aus der Auf-

nahme von Schuldscheindarlehen in Fremdwährung werden in der

Lenzing AG Zinswährungsswaps eingesetzt. Diese derivativen Fi-

nanzinstrumente dienen dazu die Variabilität zwischen den Zins-

und Tilgungszahlungen der erhaltenen Schuldscheindarlehen in

USD auszugleichen. Die Sicherungsgeschäfte werden zur Absiche-

rung des Fremdwährungsänderungsrisikos aus der Aufnahme der

Schuldscheindarlehen in USD und den Rück- und Zinszahlungen in

Fremdwährung sowie des Zinsrisikos, welches aus den variablen

Zinszahlungen des gesicherten Grundgeschäfts resultiert, festge-

legt. Die ineektiven Anteile der Derivate werden, sofern negativ,

als Drohverlust rückgestellt (per 31. Dezember 2021: TEUR 0,0 und

per 31. Dezember 2020: TEUR 0,00). Die Bestimmung der Ineek-

tivität erfolgt unter Anwendung der Dollar-Oset-Methode unter

Rückgri auf ein hypothetisches Derivat.

Bei Devisentermingeschäften werden bei der Bemessung einer all-

fälligen Drohverlustrückstellung mit an Sicherheit grenzender

Wahrscheinlichkeit eintretende gegenläuge, erfolgswirksame

Zahlungsströme berücksichtigt (zukünftige Zahlungseingänge aus

geplanten Umsatzerlösen bzw. Zahlungsausgänge aus geplanten

Materialaufwendungen in Fremdwährung). Im Jahresabschluss

2021 wurde eine Rückstellung für drohende Verluste für negative

Marktwerte von Derivaten mit einer ursprünglichen Laufzeit von

mehr als 12 Monaten in Höhe von TEUR 6.134,3 (31. Dezember

2020: TEUR 7.971,4) gebildet. Zum 31. Dezember 2021 wurde auf

eine Drohverlustrückstellung aus kurzfristigen Sicherungsbezie-

hungen zukünftiger Zahlungsströme in Höhe von TEUR 5.124,3

(31. Dezember 2020: TEUR 596,7

) verzichtet, da sich diese unrea-

lisierten Verluste mit hoher Eintrittswahrscheinlichkeit mit den ge-

genläugen unrealisierten Gewinnen aus den zukünftigen Zah-

lungseingängen bzw. Zahlungsausgängen in Fremdwährung aus-

gleichen werden.

1) Änderung Vorjahreswert

Der wirksame Ausgleich zwischen unrealisierten Verlusten und

Gewinnen wird durch Effektivitätstests nachgewiesen. Bei Fremd-

währungsabsicherungen werden die Grundgeschäfte und die Si-

cherungsinstrumente für die Effektivitätsmessung je Währung in zu-

mindest quartalsweisen Laufzeitbändern zusammengefasst. Die

prospektive Sicherungswirkung der Sicherungsbeziehungen wird

durch einen Vergleich der wesentlichsten Konditionen nachgewiesen.

Dabei werden die geplanten Grundgeschäfte den abgeschlossenen

Sicherungsinstrumenten gegenübergestellt. Die retrospektive Siche-

rungswirkung der Bewertungseinheiten wird durch Vergleich der

seit Sicherungsbeginn tatsächlich erfolgten Zahlungsströme der

Grundgeschäfte mit den tatsächlichen Zahlungsströmen der Siche-

rungsinstrumente nach der Kompensierungsmethode beurteilt.

Aufgrund der identen, aber gegenläufigen Parameter kann von einer

hoch wirksamen Sicherungsbeziehung ausgegangen werden.

An der Bonität der Kontrahenten, die an einer Bewertungseinheit

beteiligt sind, bestehen zum Bilanzstichtag keinerlei Zweifel.

Organe und Arbeitnehmer/innen

Durchschnittliche Zahl der

Mitarbeiter/innen (Köpfe)

2021 2020

Angestellte  

Arbeiter/innen  

Gesamt  

Beziehungen zu den Mitgliedern des

Vorstandes und den Mitgliedern des

Aufsichtsrates der Lenzing AG

Die aufgewendeten Vergütungen für das Management in Schlüs-

selpositionen im Rahmen ihrer Funktion, das sich aus den aktiven

Mitgliedern des Vorstandes und des Aufsichtsrates der Lenzing AG

zusammensetzt, stellen sich zusammengefasst wie folgt dar (inklu-

sive Rückstellungsveränderungen):

135 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 22

Vergütung des Managements in

Schlüsselpositionen (aufgewendet)

TEUR

2021 2020

Vergütung des Vorstandes

Grundgehalt  

Sachbezüge und andere Vorteile (insb. zur

Nutzung überlassene Geschäftsfahrzeuge)

 

Kurzfristiger variabler Leistungsbonus

(Short-Term Incentive; STI)  

Außerordentliche Vergütungsleistungen

(Sonderboni)

 

Kurzfristig fällige Leistungen  

Langfristiger variabler Leistungsbonus

(Long-Term Incentive; LTI)  

Außerordentliche Vergütungsleistungen

(Sonderboni)

 

Andere langfristig fällige Leistungen  

Beiträge zur überbetrieblichen Pensionskasse  

Leistungen nach Beendigung des

Arbeitsverhältnisses

  

Einmalige Abndung  

Leistungen aus Anlass der Beendigung des

Arbeitsverhältnisses  

Vergütung des Vorstandes  

Vergütung des Aufsichtsrates

Kurzfristig fällige Leistungen  

Summe  

Die Zielgröße für den langfristigen Bonusanteil (Long-Term Incen-

tive / LTI) der Vorstände setzt sich aus ausgewählten Kennzahlen

der Lenzing Gruppe zusammen, jeweils über einen dreijährigen Be-

rechnungszeitraum. Zusätzlich wird in diesen Berechnungszeiträu-

men die Kapitalmarktperformance der Gesellschaft im Vergleich zu

einer ausgewählten Gruppe börsennotierter Unternehmen bewer-

tet.

Den vom Betriebsrat delegierten Arbeitnehmervertretern im Auf-

sichtsrat steht neben der Vergütung für Ihre Tätigkeit im Aufsichts-

rat (insbesondere Sitzungsgelder) eine reguläre Entlohnung (Lohn

oder Gehalt und Abfertigungs- sowie Jubiläumsgeldzahlungen) im

Rahmen ihres Dienstvertrages zu. Die Entlohnung entspricht einer

angemessenen Vergütung für die ausgeübte Funktion bzw. Tätig-

keit im Unternehmen.

In markt- und konzernüblicher Weise gewährt die Lenzing AG den

Mitgliedern des Vorstandes, wie auch teilweise ihren leitenden An-

gestellten und dem Aufsichtsrat, weitere Leistungen, die als geld-

werte Vorteile angesehen werden. So besteht Versicherungsschutz

(D&O, Unfall- und Rechtsschutzversicherung etc.), dessen Kosten

von der Lenzing Gruppe getragen wird. Es erfolgen Gesamtprä-

mienzahlungen an die Versicherer, sodass eine spezische Zuord-

nung an den Vorstand und Aufsichtsrat nicht stattndet. Außerdem

werden den Mitgliedern des Vorstandes und teilweise den leiten-

den Angestellten Geschäftsfahrzeuge zur Nutzung überlassen. Da-

neben erhalten die Mitglieder des Vorstandes und des Aufsichts-

rates Aufwandersatz für angefallene Kosten, insbesondere für Rei-

sespesen. Die Grundsätze des Vergütungssystems für Vorstand

und Aufsichtsrat sind im Vergütungsbericht laut Konzernnotes 2021

der Lenzing Gruppe detailliert ausgeführt und veröentlicht.

Mitgliedern des Vorstandes und des Aufsichtsrates wurden keine

Vorschüsse, Kredite oder Haftungen gewährt. Die Lenzing Gruppe

ist keine Haftungsverhältnisse zu Gunsten des Vorstandes und des

Aufsichtsrates eingegangen.

Für die ehemaligen Mitglieder des Vorstandes der Lenzing AG

oder deren Hinterbliebene wurden Leistungen nach Beendigung

des Arbeitsverhältnisses in Form von Erträgen in der Gewinn- und

Verlustrechnung in Höhe von TEUR 12,1 (2020: Aufwendungen in

Höhe von TEUR 607,0) erfasst. Der Barwert der dafür gebildeten

Pensionsrückstellung nach Abzug des beizulegenden Zeitwerts

des Planvermögens (Nettoschuld) beträgt zum 31. Dezember 2021

TEUR 6.511,5 (31. Dezember 2020: TEUR 7.284,8).

Honorare des Abschlussprüfers

Die aufgewendeten Honorare für Leistungen der KPMG Austria

GmbH, Linz setzten sich wie folgt zusammen:

Aufgewendete Honorare des

Abschlussprüfers 2021 2020

TEUR TEUR

Prüfung des Jahresabschlusses

(inkl. Konzernabschluss)  

Andere Bestätigungsleistungen  

Sonstige Leistungen  

Gesamt  

136 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 23

Angaben zur Gruppenbesteuerung

Die Lenzing AG und die im Gruppenvertrag einbezogenen Toch-

tergesellschaften sind Gruppenmitglieder in der zwischen der B&C

Holding Österreich GmbH als Gruppenträger und der Lenzing AG

sowie weiteren Tochtergesellschaften der Lenzing AG als Grup-

penmitglieder am 27. Juli 2017 abgeschlossenen steuerlichen Un-

ternehmensgruppe gemäß § 9 öKStG (österreichisches Körper-

schaftsteuergesetz). Der Steuerausgleichsvertrag wurde mit Wir-

kung ab dem Wirtschaftsjahr 2021 der Lenzing Aktiengesellschaft

sowie der (un)mittelbaren Tochtergesellschaften, die ebenfalls

Gruppenmitglieder sind, am 04. November 2021 neu gefasst, in

dem auch die Neuregelungen betreend Zinsschranke (§ 12a KStG)

berücksichtigt sind.

Im Zuge der Gruppenbesteuerung kommt es zwischen den einbe-

zogenen Gruppenmitgliedern zu einer Aufrechnung von steuerli-

chen Gewinnen und Verlusten. Zukünftige Steuerverpichtungen

aus der Anrechnung von Verlusten ausländischer Tochtergesell-

schaften werden ohne Abzinsung im Jahresabschluss erfasst.

Der Gruppen- und Steuerausgleichsvertrag verpichtet die

Lenzing AG, eine Steuerumlage in Höhe der auf den steuerpflichti-

gen Gewinn der Gesellschaft und der in die Gruppe einbezogenen

Tochtergesellschaften entfallenden Körperschaftsteuer zu entrich-

ten. Allfällige beim Gruppenträger auf das gesamte Gruppener-

gebnis eektiv anrechenbare in- und ausländische Quellensteuern

sowie weitergeleitete Mindestkörperschaftsteuern kürzen die von

der Lenzing AG zu zahlende Steuerumlage.

Sofern im Veranlagungsjahr laufende Verluste bzw. Verlustvorträge,

die vom Gruppenträger selbst verursacht wurden, gegen positive

Ergebnisse der Steuergruppe der Lenzing AG verrechnet werden

können, kommt es zu einer Reduktion der von der Lenzing AG zu

leistenden Steuerumlage. Die Reduktion der Steuerumlage beträgt

25 Prozent des geltenden Körperschaftsteuersatzes (somit

6,25 Prozent) der in einem Veranlagungsjahr des Gruppenträgers

mit positiven Ergebnissen verrechneten gruppenträgereigenen

laufenden Verluste bzw. Verlustvorträge.

Aus der steuerlichen Unternehmensgruppe hat die Lenzing AG im

Geschäftsjahr 2021 (inklusive Beträge aus Vorperioden) eine Steu-

ergutschrift in Höhe von TEUR 747,1 (2020: TEUR 24,1) ergebnis-

wirksam verbucht. Im Geschäftsjahr 2021 erfolgten gemäß der ver-

traglichen Verpichtung und aufgrund des steuerlichen Verlustes

im Vorjahr die Rückzahlung der Vorauszahlungen der Steuerumlage

2020 vom Gruppenträger an die Lenzing AG in Höhe von

TEUR 15.285,0 (2020: Zahlung bzw. Vorauszahlung der Steuerum-

lage an den Gruppenträger in Summe von TEUR 19.195,7).

Zum 31. Dezember 2021 bilanziert die Lenzing AG aus der Steu-

erumlage nach Abzug der Vorauszahlung eine Verbindlichkeit in

Höhe von TEUR 27.999,7 gegenüber dem Gruppenträger. Diese

wird im Bilanzposten „Verbindlichkeiten gegenüber verbundenen

Unternehmen“ ausgewiesen (per 31. Dezember 2020: unter „For-

derungen gegenüber verbundenen Unternehmen“ TEUR 4.568,2).

Der steuerliche Verlust aus dem Jahr 2020 in Höhe von

TEUR 13.023,7 wurde im Geschäftsjahr 2021 zur Gänze mit Gewin-

nen verrechnet.

Ein steuerlicher Verlust der Lenzing AG inklusive der beteiligten

Tochtergesellschaften wird evident gehalten und mit künftigen

steuerlichen Gewinnen verrechnet. Für bei Beendigung des Ver-

trages nicht verrechnete Verluste ist eine Ausgleichszahlung ver-

einbart.

Mit den einbezogenen Tochtergesellschaften wurde ein Ergän-

zungsvertrag abgeschlossen, welcher ebenfalls mit Wirkung ab

dem Wirtschaftsjahr 2021 neu gefasst wurde. Dieser Vertrag ver-

pichtet das jeweilige österreichische Gruppenmitglied, eine Steu-

erumlage in Höhe der auf seinen steuerpichtigen Gewinn entfal-

lenden Körperschaftsteuer an die Lenzing AG zu entrichten. Die

Lenzing AG ist verpicht

et, de

r jeweiligen Gesellschaft im Fall ei-

nes Verlustes eine Steuergutschrift in der Höhe der durch den Ver-

lust bewirkten Steuerentlastung zu erteilen. Steuerliche Verluste

von ausländischen Gruppenmitgliedern, welche in die Gruppenbe-

steuerung einbezogen werden, kürzen die geschuldete Steuerum-

lage des betreenden Gruppenmitglieds maximal auf Null. Die

darüberhinausgehenden ausländischen Verluste werden in einem

internen Verlustvortrag evident gehalten und mit künftigen auslän-

dischen Gewinnen, die nachversteuert werden müssen, gegenver-

rechnet.

137 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 24

Direkte Beteiligungen zum 31.12.2021

Beteiligung Währung Nennkapital

Anteil in

Prozent

Eigenkapital

31.12.2021

Jahresüberschuss/-

fehlbetrag 2021

TEUR TEUR

Beech Investment s.r.o., Zlaté Moravce, Slowakei EUR   







BZL-Bildungszentrum Lenzing GmbH, Lenzing EUR    

EQUI-Fibres Beteiligungsgesellschaft mbH, Kelheim, Deutschland EUR   



-



Gemeinnützige Siedlungsgesellschaft m.b.H. für den Bezirk

Vöcklabruck, Lenzing

EUR   







LD Celulose S.A., Sao Paulo, Brasilien BRL   



-



LD Florestal S.A., Sao Paulo, Brasilien BRL   



-



Lenzing (Thailand) Co., Ltd., Bangkok, Thailand THB   



-



Lenzing Fibers (Hongkong) Ltd., Hong Kong, China HKD   







Lenzing Fibers (Shanghai) Co., Ltd., Shanghai, China USD   







Lenzing Fibers Holding GmbH, Lenzing EUR    

Lenzing Fibers India Private Ltd. INR   







Lenzing Global Finance GmbH, München, Deutschland EUR   







Lenzing Land Holding LLC., Dover, USA USD   







Lenzing Modi Fibers India Private Limited, Mumbai, Indien INR   



-



Lenzing Papier GmbH, Lenzing EUR   







Lenzing Singapore Pte. Ltd., Singapur, Republik Singapur EUR   







PT. Pura Golden Lion, Jakarta, Indonesien IDR   







PT. South Pacic Viscose, Purwakarta, Indonesien IDR  







-



Pulp Trading GmbH, Lenzing EUR    

RVL Reststoverwertung Lenzing GmbH, Lenzing EUR    

1) 2020

2) Der direkt von der Lenzing AG gehaltene Anteil beträgt 91,87 Prozent, inkl. der indirekt gehaltenen Anteile beträgt der durchgerechnete Anteil 95,12 Prozent.

3) Eigenkapital und Ergebnis wurden nach lokalem Recht ermittelt.

4) Eigenkapital und Ergebnis wurden aus den zur Erstellung des Konzernabschlusses herangezogenen Abschlüssen, welche entsprechend IFRS aufgestellt wurden, entnommen.

5) Vorläug

138 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 25

Direkte Beteiligungen zum 31.12.2020

Beteiligung Währung Nennkapital

Anteil in

Prozent

Eigenkapital

31.12.2020

Jahresüberschuss

/-fehlbetrag 2020

TEUR TEUR

Avit Investments Limited, Providenciales, Turks & Caicos USD   



-



Beech Investment s.r.o., Zlaté Moravce, Slowakei EUR   







BZL-Bildungszentrum Lenzing GmbH, Lenzing EUR    

EQUI-Fibres Beteiligungsgesellschaft mbH, Kelheim, Deutschland EUR   







Gemeinnützige Siedlungsgesellschaft m.b.H. für den Bezirk

Vöcklabruck, Lenzing

EUR   







Hygiene Austria LP GmbH EUR   







LD Celulose S.A., Sao Paulo, Brasilien BRL   



-



LD Florestal S.A., Sao Paulo, Brasilien BRL   







Lenzing (Thailand) Co., Ltd., Bangkok, Thailand THB   



-



Lenzing Fibers (Hongkong) Ltd., Hong Kong, China HKD   







Lenzing Fibers (Shanghai) Co., Ltd., Shanghai, China USD    



Lenzing Fibers Holding GmbH, Lenzing EUR   





Lenzing Global Finance GmbH, München, Deutschland EUR   







Lenzing Land Holding LLC., Dover, USA USD   







Lenzing Modi Fibers India Private Limited, Mumbai, Indien INR   



-



Lenzing Fibers India Private Ltd. INR   



-



Lenzing Papier GmbH, Lenzing EUR   







Lenzing Singapore Pte. Ltd., Singapur, Republik Singapur EUR   







Penique S.A., Panama, Panama USD   







PT. Pura Golden Lion, Jakarta, Indonesien IDR   







PT. South Pacic Viscose, Purwakarta, Indonesien IDR  







-



Pulp Trading GmbH, Lenzing EUR    

RVL Reststoverwertung Lenzing GmbH, Lenzing EUR    

1) 2019

2) Der direkt von der Lenzing AG gehaltene Anteil beträgt 88,08 Prozent, inkl. der indirekt gehaltenen Anteile beträgt der durchgerechnete Anteil 92,85 Prozent.

3) Eigenkapital und Ergebnis wurden nach lokalem Recht ermittelt.

4) Eigenkapital und Ergebnis wurden aus den zur Erstellung des Konzernabschlusses herangezogenen Abschlüssen, welche entsprechend IFRS aufgestellt wurden, entnommen.

5) Vorläug

6) Änderung Vorjahreswert

Gewinnverteilungsvorschlag für den

Bilanzgewinn 2021

EUR

Das Geschäftsjahr 2021 endet mit einem

Jahresüberschuss von 

nach Zuweisung zu (freien) Gewinnrücklagen von -

und nach Hinzurechnung des Gewinnvortrages 2020

von 

verbleibt ein Bilanzgewinn von 

Der Vorstand schlägt folgende Verteilung des

Bilanzgewinnes vor:

Ausschüttung einer Dividende entsprechend einem

Betrag von EUR 4,35 je Aktie auf das

dividendenberechtigte Grundkapital von

EUR 27.574.071,43 bzw. 26.550.000 Stückaktien 

Auf neue Rechnung werden vorgetragen 

Vorbehaltlich des Beschlusses der Hauptversammlung erfolgt auf

je eine Aktie die Auszahlung einer Dividende in der oben angege-

benen Höhe. Die Dividendenauszahlung erfolgt ab 3. Mai 2022 bei

der

UniCredit Bank Austria AG

Rothschildplatz 1

1020 Wien

Die Aktien werden ab 28. April 2022 an der Wiener Börse ex Divi-

dende gehandelt.

139 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 26

Organe der Gesellschaft

Mitglieder des Aufsichtsrates

●

Dipl.-Bw. Peter Edelmann

Vorsitzender

●

Mag. Patrick Prügger

Stellvertretender Vorsitzender (seit 14. April 2021)

●

Dr. Stefan Fida

Stellvertretender Vorsitzender (seit 14. April 2021)

●

Mag. Helmut Bernkopf

●

Dr. Christian Bruch

●

Dr. Markus Fürst, MBA (seit 14. April 2021)

●

KR Dr. Franz Gasselsberger, MBA

●

Melody Harris-Jensbach (seit 18. Juni 2020)

●

Cord Prinzhorn, MBA (14. April 2021 bis 3. November 2021)

●

Dr. Astrid Skala-Kuhmann

●

Dr. Veit Sorger

Stellvertretender Vorsitzender (bis 14. April 2021)

●

Dr. Felix Fremerey (bis 18. Juni 2020)

Vom Betriebsrat delegiert

●

Johann Schernberger

Vorsitzender des Konzernbetriebsrates

Vorsitzender des Betriebsausschusses (bis 18. Jänner 2021)

Vorsitzender des Arbeiterbetriebsrates

●

Helmut Kirchmair

Vorsitzender des Betriebsausschusses (seit 18. Jänner 2021)

Stellvertretender Vorsitzender des Arbeiterbetriebsrates

●

Georg Liftinger

Stellvertretender Vorsitzender des Betriebsausschusses

Vorsitzender des Angestelltenbetriebsrates

●

Herbert Brauneis

Stellvertretender Vorsitzender des Arbeiterbetriebsrates

●

Ing. Daniela Födinger

Stellvertretende Vorsitzende des Angestelltenbetriebsrates

Mitglieder des Vorstandes

●

Cord Prinzhorn, MBA

Vorstandsvorsitzender (seit 4. November 2021)

●

Mag. Thomas Obendrauf, MBA

Finanzvorstand

●

Robert van de Kerkhof, MBA

Mitglied des Vorstandes

●

DI Stephan Siela

Mitglied des Vorstandes (seit 1. März 2020)

●

DI Christian Skilich, MBA, LLM

Mitglied des Vorstandes (seit 1. Juni 2020)

●

Dr. Stefan Doboczky, MBA

Vorstandsvorsitzender (bis 30. September 2021)

140 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 27

Wesentliche Ereignisse nach dem

Bilanzstichtag

Am 20. Jänner 2022 wurde in Österreich die stufenweise Senkung

des Körperschaftsteuersatzes von 25 Prozent auf 23 Prozent mit

Wirkung ab dem 1. Jänner 2023 beschlossen. Diese Senkung wirkt

sich nicht auf die zum 31. Dezember 2021 erfassten tatsächlichen

oder latenten Steuern aus. Allerdings wird diese Änderung die

künftige tatsächliche Steuerlast der Lenzing AG entsprechend

senken. Wenn die geänderten Steuersätze für die Berechnung der

Steuerabgrenzung zum 31. Dezember 2021 verwendet worden wä-

ren, hätten sich die aktiven latenten Steuern um TEUR 570,5 ver-

mindert.

Seit dem 24. Februar 2022 gibt es militärische Auseinandersetzun-

gen zwischen Russland und der Ukraine. Die Lenzing AG verfügt in

beiden Staaten über keine Beteiligungen, sonstige Vermögens-

werte bzw. andere wesentliche Geschäftsbeziehungen. Auf den

Jahresabschluss per 31. Dezember 2021 der Lenzing AG ergeben

sich daher keine nanziellen Auswirkungen.

Darüber hinaus sind nach dem Bilanzstichtag 31. Dezember 2021

keine Vorgänge von wesentlicher Bedeutung für die Lenzing AG

bekannt geworden, die zu einer anderen Darstellung der Vermö-

gens-, Finanz- und Ertragslage geführt hätten.

Lenzing, am 1. März 2022

Lenzing Aktiengesellschaft

Der Vorstand

Cord Prinzhorn, MBA

Vorstands

vorsitzender

Mag. Thomas Obendrauf, MBA

Finanzvorstand

Robert van de Kerkhof, MBA

Mitglied des Vorstandes

DI Stephan Siela

Mitglied des Vorstandes

DI Christian Skilich, MBA, LLM

Mitglied des Vorstandes

141 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 28

Lenzing AG

Entwicklung des Anlagevermögens

für den Zeitraum 01. Jänner 2021 bis 31. Dezember 2021

Anschaungskosten

Anschaungs- bzw.

Herstellungskosten

Zugänge Umbuchungen Abgänge

Anschaungs- bzw.

Herstellungskosten

01.01.2021 2021 2021 2021 31.12.2021

I. Immaterielle Vermögensgegenstände EUR EUR EUR EUR EUR

1. Rechte    -   

2. Firmenwert     

Summe Immaterielle Vermögensgegenstände     - 

II. Sachanlagen

1. Grundstücke, grundstücksgleiche Rechte und Bauten,

einschließlich der Bauten auf fremdem Grund

a) Wohngebäude

Grundwert    -  

Gebäudewert    - 

b) Geschäfts- und Fabriksgebäude und andere

Baulichkeiten

Grundwert     

Gebäudewert      -  

c) Unbebaute Grundstücke      

   - 

2. Technische Anlagen und Maschinen      -  

3. Andere Anlagen, Betriebs- und Geschäftsausstattung  



 - 





4. Anlagen in Bau   -  

5. Geleistete Anzahlungen   -  

Summe Sachanlagen    - - 

III. Finanzanlagen

1. Anteile an verbundenen Unternehmen     - 

2. Ausleihungen an verbundene Unternehmen    -   

3. Beteiligungen    - 

4. Wertpapiere (Wertrechte) des Anlagevermögens     -  

5. Sonstige Ausleihungen     - 

Summe Finanzanlagen     -  

   -  

1) inklusive geringwertige Vermögensgegenstände in Höhe von EUR 925.717,21.

142 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 29

Abschreibungen kumuliert Buchwert

Abschreibungen

kumuliert

Abschreibungen Zuschreibungen Umbuchungen Abgänge

Abschreibungen

kumuliert

Buchwert Buchwert

01.01.2021 2021 2021 2021 2021 31.12.2021 31.12.2021 31.12.2020

EUR EUR EUR EUR EUR EUR EUR EUR

     -    

         

    -   

         

     -     

         

    -    

         

    -   

    -       

  



  -



    

           

         

    -   

        

   -     

        

     -    

   -     

  -   -     

  -  -    

143 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 30

Lenzing AG

Entwicklung der Zuschüsse der öentlichen Hand

für den Zeitraum 01. Jänner 2021 bis 31. Dezember 2021

Zuschüsse der öentlichen Hand

Stand am

01.01.2021

Zugang Abgang Auösung Umbuchung

Stand am

31.12.2021

A. Investitionszuschüsse EUR EUR EUR EUR EUR EUR

I. Investitionszuschüsse der

öentlichen Hand

1. Grundstücke, grundstücksgleiche

Rechte und Bauten, einschließlich der

Bauten auf fremdem Grund

    -  

2. Technische Anlagen und Maschinen      -   

3. Andere Anlagen, Betriebs- und

Geschäftsausstattung    -  

   -  

II. Emissionszertikate   - -  

III. Investitionsprämien    -  

  - -  

144 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 31

Bericht zum Jahresabschluss

Prüfungsurteil

Wir haben den Jahresabschluss der

Lenzing Aktiengesellschaft,

Lenzing,

bestehend aus der Bilanz zum 31. Dezember 2021, der Gewinn-

und Verlustrechnung für das an diesem Stichtag endende Ge-

schäftsjahr und dem Anhang, geprüft.

Nach unserer Beurteilung entspricht der Jahresabschluss den ge-

setzlichen Vorschriften und vermittelt ein möglichst getreues Bild

der Vermögens- und Finanzlage zum 31. Dezember 2021 sowie der

Ertragslage der Gesellschaft für das an diesem Stichtag endende

Geschäftsjahr in Übereinstimmung mit den österreichischen unter-

nehmensrechtlichen Vorschriften.

Grundlage für das Prüfungsurteil

Wir haben unsere Abschlussprüfung in Übereinstimmung mit der

EU-Verordnung Nr 537/2014 (im Folgenden AP-VO) und mit den

österreichischen Grundsätzen ordnungsgemäßer Abschlussprü-

fung durchgeführt. Diese Grundsätze erfordern die Anwendung

der International Standards on Auditing (ISA). Unsere Verantwort-

lichkeiten nach diesen Vorschriften und Standards sind im Ab-

schnitt "Verantwortlichkeiten des Abschlussprüfers für die Prüfung

des Jahresabschlusses" unseres Bestätigungsvermerks weiterge-

hend beschrieben. Wir sind von der Gesellschaft unabhängig in

Übereinstimmung mit den österreichischen unternehmens- und

berufsrechtlichen Vorschriften und wir haben unsere sonstigen be-

ruichen Pichten in Übereinstimmung mit diesen Anforderungen

erfüllt. Wir sind der Auassung, dass die von uns erlangten Prü-

fungsnachweise bis zum Datum dieses Bestätigungsvermerkes

ausreichend und geeignet sind, um als Grundlage für unser Prü-

fungsurteil zu diesem Datum zu dienen.

Besonders wichtige Prüfungssachverhalte

Besonders wichtige Prüfungssachverhalte sind solche Sachver-

halte, die nach unserem pichtgemäßen Ermessen am bedeut-

samsten für unsere Prüfung des Jahresabschlusses des Geschäfts-

jahres waren. Diese Sachverhalte wurden im Zusammenhang mit

unserer Prüfung des Jahresabschlusses als Ganzes und bei der Bil-

dung unseres Prüfungsurteils hierzu berücksichtigt und wir geben

kein gesondertes Prüfungsurteil zu diesen Sachverhalten ab.

Werthaltigkeit der Anteile an verbundenen Unternehmen

Siehe Anhang Seite 6.

Das Risiko für den Abschluss

Die Anteile an verbundenen Unternehmen mit einem Buchwert in

Höhe von EUR 831 Mio. stellen rund 26 % des ausgewiesenen Ver-

mögens im Jahresabschluss der Lenzing Aktiengesellschaft dar.

Für sämtliche bedeutsamen Anteile an verbundenen Unternehmen

beurteilt Lenzing Aktiengesellschaft, ob Anhaltspunkte für einen

wesentlich gesunkenen beizulegenden Wert vorliegen. Liegen sol-

che Anhaltspunkte vor, wird für das betroene verbundene Unter-

nehmen eine Unternehmensbewertung durchgeführt und der

Buchwert der Anteile gegebenenfalls auf den niedrigeren beizule-

genden Wert abgeschrieben. Zum 31. Dezember 2021 hat Lenzing

Aktiengesellschaft für die Anteile an der PT. South Pacic Viscose

Anhaltspunkte für einen wesentlich gesunkenen beizulegenden

Wert identiziert. Der in Folge ermittelte beizulegende Wert ergab

eine ausreichende Deckung des Buchwertes der Anteile.

Die Bewertung des beizulegenden Wertes von Anteilen an verbun-

denen Unternehmen erfordert Annahmen und Schätzungen, wie

beispielsweise die Schätzung der künftigen Einzahlungsüber-

schüsse sowie die Festlegung des anzuwendenden Diskontie-

rungszinssatzes. Für den Jahresabschluss besteht damit das Risiko,

dass nicht angemessene Annahmen und Schätzungen eine we-

sentliche Auswirkung auf den beizulegenden Wert und damit den

Wertansatz der Anteile an verbundenen Unternehmen in der Bilanz

und das Finanzergebnis in der Gewinn- und Verlustrechnung ha-

ben können.

Unsere Vorgehensweise in der Prüfung

Wir haben die Werthaltigkeit der Anteile an verbundenen Unter-

nehmen wie folgt beurteilt:

●

Wir haben die vom Unternehmen durchgeführte Analyse der

Anhaltspunkte für einen wesentlich gesunkenen beizulegen-

den Wert (einschließlich der Deckung des Beteiligungsansat-

zes durch das anteilige Eigenkapital) der Anteile an verbunde-

nen Unternehmen nachvollzogen.

●

Zur Beurteilung der Angemessenheit der zugrunde gelegten

internen Planungen haben wir uns ein Verständnis über den

Planungsprozess verschat, die Annahmen über Wachstums-

raten und operative Ergebnisse in Gesprächen mit den zustän-

digen leitenden Personen im Unternehmen erörtert und die der

Bewertung zugrunde gelegten Planungsdaten mit den aktuel-

len vom Aufsichtsrat genehmigten Budgetzahlen sowie der

vom Vorstand freigegebenen Mittelfristplanung abgeglichen.

●

Die Planungstreue haben wir durch Vergleich der in den Vor-

jahren erfolgten Planungen mit den tatsächlich eingetretenen

Werten beurteilt.

●

Unsere Bewertungsspezialisten haben die Methodik der

durchgeführten Wertminderungstests nachvollzogen und be-

urteilt, ob diese angemessen ist. Die zur Festlegung der Kapi-

talkostensätze herangezogenen Annahmen haben unsere Be-

wertungsspezialisten mit markt- und branchenspezischen

ichtwerten abgeglichen und die rechnerische Richtigkeit des

Berechnungsschemas überprüft.

Bestätigungsvermerk

145 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 32

Verantwortlichkeiten der gesetzlichen

Vertreter und des Prüfungsausschusses für den

Jahresabschluss

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung

des Jahresabschlusses und dafür, dass dieser in Übereinstimmung

mit den österreichischen unternehmensrechtlichen Vorschriften

ein möglichst getreues Bild der Vermögens-, Finanz- und Ertrags-

lage der Gesellschaft vermittelt. Ferner sind die gesetzlichen Ver-

treter verantwortlich für die internen Kontrollen, die sie als notwen-

dig erachten, um die Aufstellung eines Jahresabschlusses zu er-

möglichen, der frei von wesentlichen falschen Darstellungen auf-

grund von dolosen Handlungen oder Irrtümern ist.

Bei der Aufstellung des Jahresabschlusses sind die gesetzlichen

Vertreter dafür verantwortlich, die Fähigkeit der Gesellschaft zur

Fortführung der Unternehmenstätigkeit zu beurteilen, Sachverhalte

im Zusammenhang mit der Fortführung der Unternehmenstätigkeit

– sofern einschlägig – anzugeben, sowie dafür, den Rechnungsle-

gungsgrundsatz der Fortführung der Unternehmenstätigkeit anzu-

wenden, es sei denn, die gesetzlichen Vertreter beabsichtigen, ent-

weder die Gesellschaft zu liquidieren oder die Unternehmenstätig-

keit einzustellen oder haben keine realistische Alternative dazu.

Der Prüfungsausschuss ist verantwortlich für die Überwachung des

Rechnungslegungsprozesses der Gesellschaft.

Verantwortlichkeiten des Abschlussprüfers für

die Prüfung des Jahresabschlusses

Unsere Ziele sind hinreichende Sicherheit darüber zu erlangen, ob

der Jahresabschluss als Ganzes frei von wesentlichen falschen

Darstellungen aufgrund von dolosen Handlungen oder Irrtümern

ist und einen Bestätigungsvermerk zu erteilen, der unser Prüfungs-

urteil beinhaltet. Hinreichende Sicherheit ist ein hohes Maß an Si-

cherheit, aber keine Garantie dafür, dass eine in Übereinstimmung

mit der AP-VO und mit den österreichischen Grundsätzen ord-

nungsgemäßer Abschlussprüfung, die die Anwendung der ISA er-

fordern, durchgeführte Abschlussprüfung eine wesentliche falsche

Darstellung, falls eine solche vorliegt, stets aufdeckt. Falsche Dar-

stellungen können aus dolosen Handlungen oder Irrtümern resul-

tieren und werden als wesentlich angesehen, wenn von ihnen ein-

zeln oder insgesamt vernünftigerweise erwartet werden könnte,

dass sie die auf der Grundlage dieses Jahresabschlusses getroe-

nen wirtschaftlichen Entscheidungen von Nutzern beeinussen.

Als Teil einer Abschlussprüfung in Übereinstimmung mit der AP-

VO und mit den österreichischen Grundsätzen ordnungsgemäßer

Abschlussprüfung, die die Anwendung der ISA erfordern, üben wir

während der gesamten Abschlussprüfung pichtgemäßes Ermes-

sen aus und bewahren eine kritische Grundhaltung.

Darüber hinaus gilt:

●

Wir identizieren und beurteilen die Risiken wesentlicher

falscher Darstellungen aufgrund von dolosen Handlungen oder

Irrtümern im Abschluss, planen Prüfungshandlungen als

Reaktion auf diese Risiken, führen sie durch und erlangen

Prüfungsnachweise, die ausreichend und geeignet sind, um als

Grundlage für unser Prüfungsurteil zu dienen. Das Risiko, dass

aus dolosen Handlungen resultierende wesentliche falsche

Darstellungen nicht aufgedeckt werden, ist höher als ein aus

Irrtümern resultierendes, da dolose Handlungen kollusives

Zusammenwirken, Fälschungen, beabsichtigte Unvoll-

ständigkeiten, irreführende Darstellungen oder das

Außerkraftsetzen interner Kontrollen beinhalten können.

●

Wir gewinnen ein Verständnis von dem für die Abschlussprü-

fung relevanten internen Kontrollsystem, um Prüfungshandlun-

gen zu planen, die unter den gegebenen Umständen ange-

messen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur

Wirksamkeit des internen Kontrollsystems der Gesellschaft

abzugeben.

●

Wir beurteilen die Angemessenheit der von den gesetzlichen

Vertretern angewandten Rechnungslegungsmethoden sowie

die Vertretbarkeit der von den gesetzlichen Vertretern darge-

stellten geschätzten Werte in der Rechnungslegung und damit

zusammenhängende Angaben.

●

Wir ziehen Schlussfolgerungen über die Angemessenheit der

Anwendung des Rechnungslegungsgrundsatzes der Fortfüh-

rung der Unternehmenstätigkeit durch die gesetzlichen Vertre-

ter sowie, auf der Grundlage der erlangten Prüfungsnachweise,

ob eine wesentliche Unsicherheit im Zusammenhang mit Er-

eignissen oder Gegebenheiten besteht, die erhebliche Zweifel

an der Fähigkeit der Gesellschaft zur Fortführung der Unter-

nehmenstätigkeit aufwerfen können. Falls wir die Schlussfol-

gerung ziehen, dass eine wesentliche Unsicherheit besteht,

sind wir verpichtet, in unserem Bestätigungsvermerk auf die

dazugehörigen Angaben im Jahresabschluss aufmerksam zu

machen oder, falls diese Angaben unangemessen sind, unser

Prüfungsurteil zu modizieren. Wir ziehen unsere Schlussfol-

gerungen auf der Grundlage der bis zum Datum unseres Be-

stätigungsvermerks erlangten Prüfungsnachweise. Zukünftige

Ereignisse oder Gegebenheiten können jedoch die Abkehr der

Gesellschaft von der Fortführung der Unternehmenstätigkeit

zur Folge haben.

●

Wir beurteilen die Gesamtdarstellung, den Aufbau und den In-

halt des Jahresabschlusses einschließlich der Angaben sowie

ob der Jahresabschluss die zugrunde liegenden Geschäftsvor-

fälle und Ereignisse in einer Weise wiedergibt, dass ein mög-

lichst getreues Bild erreicht wird.

●

Wir tauschen uns mit dem Prüfungsausschuss unter anderem

über den geplanten Umfang und die geplante zeitliche Eintei-

lung der Abschlussprüfung sowie über bedeutsame Prüfungs-

feststellungen, einschließlich etwaiger bedeutsamer Mängel

im internen Kontrollsystem, die wir während unserer Ab-

schlussprüfung erkennen, aus.

●

Wir geben dem Prüfungsausschuss auch eine Erklärung ab,

dass wir die re

levanten beruichen Verhaltensanforderungen

zur Unabhängigkeit eingehalten haben und uns mit ihm über

alle Beziehungen und sonstigen Sachverhalte austauschen,

von denen vernünftigerweise angenommen werden kann, dass

sie sich auf unsere Unabhängigkeit und – sofern einschlägig –

damit zusammenhängende Schutzmaßnahmen auswirken.

●

Wir bestimmen von den Sachverhalten, über die wir uns mit

dem Prüfungsausschuss ausgetauscht haben, diejenigen

Sachverhalte, die am bedeutsamsten für die Prüfung des Jah-

resabschlusses des Geschäftsjahres waren und daher die be-

sonders wichtigen Prüfungssachverhalte sind. Wir beschrei-

ben diese Sachverhalte in unserem Bestätigungsvermerk, es

sei denn, Gesetze oder andere Rechtsvorschriften schließen

die öentliche Angabe des Sachverhalts aus oder wir bestim-

men in äußerst seltenen Fällen, dass ein Sachverhalt nicht in

unserem Bestätigungsvermerk mitgeteilt werden sollte, weil

vernünftigerweise erwartet wird, dass die negativen Folgen ei-

ner solchen Mitteilung deren Vorteile für das öentliche Inte-

resse übersteigen würden.

146 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 33

Sonstige gesetzliche und andere rechtliche

Anforderungen

Bericht zum Lagebericht

Der Lagebericht ist aufgrund der österreichischen unternehmens-

rechtlichen Vorschriften darauf zu prüfen, ob er mit dem Jahresab-

schluss in Einklang steht und ob er nach den geltenden rechtlichen

Anforderungen aufgestellt wurde.

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung

des Lageberichtes in Übereinstimmung mit den österreichischen

unternehmensrechtlichen Vorschriften.

Wir haben unsere Prüfung in Übereinstimmung mit den Berufs-

grundsätzen zur Prüfung des Lageberichtes durchgeführt.

Urteil

Nach unserer Beurteilung ist der Lagebericht nach den geltenden

rechtlichen Anforderungen aufgestellt worden, enthält die nach

§ 243a UGB zutreenden Angaben, und steht in Einklang mit dem

Jahresabschluss.

Erklärung

Angesichts der bei der Prüfung des Jahresabschlusses gewonne-

nen Erkenntnisse und des gewonnenen Verständnisses über die

Gesellschaft und ihr Umfeld haben wir keine wesentlichen fehler-

haften Angaben im Lagebericht festgestellt.

Zusätzliche Angaben nach Artikel 10 AP-VO

Wir wurden von der Hauptversammlung am 14. April 2021 als Ab-

schlussprüfer gewählt und am 27. April 2021 vom Aufsichtsrat mit

der Abschlussprüfung der Gesellschaft für das am 31. Dezember

2021 endende Geschäftsjahr beauftragt.

Wir sind ohne Unterbrechung seit dem Jahresabschluss zum

31. Dezember 2017 Abschlussprüfer der Gesellschaft.

Wir erklären, dass das Prüfungsurteil im Abschnitt „Bericht zum

Jahresabschluss“ mit dem zusätzlichen Bericht an den Prüfungs-

ausschuss nach Artikel 11 der AP-VO in Einklang steht.

Wir erklären, dass wir keine verbotenen Nichtprüfungsleistungen

(Artikel 5 Abs 1 der AP-VO) erbracht haben und dass wir bei der

Durchführung der Abschlussprüfung unsere Unabhängigkeit von

der geprüften Gesellschaft gewahrt haben.

Auftragsverantwortliche Wirtschaftsprüferin

Die für die Abschlussprüfung auftragsverantwortliche Wirtschafts-

prüferin ist Frau Mag. Gabriele Lehner.

Linz, am 1. März 2022

KPMG Austria GmbH

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft

qualiziert elektronisch signiert:

Mag. Gabriele Lehner

Wirtschaftsprüferin

Dieses Dokument wurde qualiziert elektronisch signiert und ist nur in dieser Fassung

gültig. Die Veröentlichung oder Weitergabe des Jahresabschlusses mit unserem Be-

stätigungsvermerk darf nur in der von uns bestätigten Fassung erfolgen. Dieser Bestä-

tigungsvermerk bezieht sich ausschließlich auf den deutschsprachigen und vollständi-

gen Jahresabschluss samt Lagebericht. Für abweichende Fassungen sind die Vor-

schriften des § 281 Abs 2 UGB zu beachten.

147 Annual Financial Report 2021 Lenzing Group

Geschäftsbericht 2021 Lenzing AG 34

Erklärung des Vorstandes gemäß

§ 124 (1) Z 3 Börsegesetz

Wir erklären nach bestem Wissen, dass der im Einklang mit den

maßgebenden Rechnungslegungsstandards gemäß UGB aufge-

stellte Jahresabschluss der Lenzing AG zum 31. Dezember 2021 ein

möglichst getreues Bild der Vermögens-, Finanz- und Ertragslage

der Lenzing AG vermittelt.

Ebenso erklären wir nach bestem Wissen, dass der Lagebericht

den Geschäftsverlauf, das Geschäftsergebnis und die Lage der

Lenzing AG so darstellt, dass ein möglichst getreues Bild deren

Vermögens-, Finanz- und Ertragslage entsteht, und dass der Lage-

bericht die wesentlichen Risiken und Ungewissheiten beschreibt,

denen die Lenzing AG ausgesetzt ist.

Lenzing, am 1. März 2022

Lenzing Aktiengesellschaft

Der Vorstand

Cord Prinzhorn, MBA

Vorstandsvorsitzender

Mag. Thomas Obendrauf, MBA

Finanzvorstand

Robert van de Kerkhof, MBA

Mitglied des Vorstandes

DI Stephan Siela

Mitglied des Vorstandes

DI Christian Skilich, MBA, LLM

Mitglied des Vorstandes

Erklärung des Vorstandes

148 Annual Financial Report 2021 Lenzing Group

Eigentümer & Herausgeber

Lenzing Aktiengesellschaft

4860 Lenzing, Österreich

www.lenzing.com

Konzeption, Redaktion

GW+Co (www.gilmarwendt.com),

Lenzing Gruppe

Layout und Gestaltung

nexxar GmbH (www.nexxar.com)

Textseiten 3-329, 32-114, 116-148

Inhouse produziert mit FIRE.sys

Impressum

Dieser Geschäftsbericht enthält auch zukunftsbezogene Aussagen, die auf gegenwärtigen, nach bestem Wissen vorgenommenen Einschätzungen und Annahmen der

Lenzing Gruppe beruhen. Angaben unter Verwendung der Worte „sollen“, „dürfen“, „werden“, „erwartet“, „angestrebt“, „geht davon aus“, „nimmt an“, „schätzt“, „plant“,

„beabsichtigt“, „ist der Ansicht“, „nach Kenntnis“, „nach Einschätzung“ oder ähnliche Formulierungen deuten auf solche zukunftsbezogene Aussagen hin. Die Prognosen,

die sich auf die zukünftige Entwicklung der Lenzing Gruppe beziehen, stellen Einschätzungen dar, die auf Basis der zum Zeitpunkt der Drucklegung des Geschäftsberichts

vorhandenen Informationen gemacht wurden. Sollten die den Prognosen zugrundeliegenden Annahmen nicht eintreen oder Risiken in nicht kalkulierter Höhe eintreten,

so können die tatsächlichen Ergebnisse von den Prognosen abweichen. Bei der Summierung von gerundeten Beträgen und Prozentangaben können Rundungsdierenzen

auftreten. Der Geschäftsbericht wurde mit größtmöglicher Sorgfalt erstellt, um die Richtigkeit und Vollständigkeit der Angaben in allen Teilen sicherzustellen. Rundungs-,

Satz- und Druckfehler können dennoch nicht ganz ausgeschlossen werden.

Hinweise

149 Annual Financial Report 2021 Lenzing Group