21. Investments accounted for using the equity method

Investments accounted for using the equity method comprise the following:

The investments in associates represent shares in companies in which the Lenzing Group can exert significant influence over financial 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 arrangement.

The main investments accounted for using the equity method include, in particular, the interest in TreeToTextile AB (TTT), Stockholm, Sweden, which is allocated to the Fiber Division segment as well as Lenzing Papier GmbH (LPP), Lenzing, which is allocated to the “Others” segment and LD Florestal S.A. (LDF), Indianópolis, Brazil, which is allocated to the Pulp Division segment. For the strategic importance of the other investments accounted for using the equity method and their relationship with the Lenzing Group, please see note 38.

Investments accounted for using the equity method developed as follows:

The Lenzing Group recognizes both measurement effects and the results from investments accounted for using the equity method together in income from investments accounted for using the equity method.

The Lenzing Group, as at December 31, 2025, held 22.6 percent of capital and voting rights in TTT (December 31, 2024: 0.0 percent). The core business of TTT, which is not publicly listed, is the research, production, and sale of sustainably regenerated cellulosic fibers. The relations between the Lenzing Group and this company are described in note 38.

The following table provides summarized financial information on TTT in accordance with local accounting standards (100 percent):

The reconciliation of equity to the carrying amount of the investment in TTT is as follows:

The Lenzing Group held 40 percent of capital and voting rights in LPP as at December 31, 2025 (December 31, 2024: 40 percent). The core business of LPP, which is not publicly listed, is the production of cellulose-based products, in particular paper. The relations between the Lenzing Group and this company are described in note 38.

The following table provides summarized financial information on LPP in accordance with IFRS (100 percent):

The reconciliation of equity to the carrying amount of the investment in LPP is as follows:

The Lenzing Group, as at December 31, 2025, held 20 percent of capital and voting rights in Equi-Fibres Beteiligungsgesellschaft mbH (EFB) which is not publicly listed (December 31, 2024: 20 percent). The core business of EFB is the production and marketing of regenerated cellulosic fibers. The relations between the Lenzing Group and this company are described in note 38.

In October 2024, Kelheim Fibres GmbH (KFG), Kelheim, Germany, a wholly owned subsidiary of EFB, filed for insolvency under provisional self-administration. Insolvency proceedings were opened on January 1, 2025, and self-administration was ordered. On January 26, 2026, the management of KFG announced that the business operations of KFG will be discontinued as of March 31, 2026. The company is not expected to continue operating beyond this date. As EFB holds this as its only investment, the recoverability of its assets is directly impacted by the insolvency filing and the discontinuation of business operations. In summary, due to the impairment losses recognized in previous years, there are no further effects on the consolidated financial statements of the Lenzing Group in the 2024 and 2025 financial years.

The previous business relationships (pulp deliveries) will continue against advance payment until the end of March 2026. In the 2025 financial year, a final distribution was made from the supplier pool established in the course of insolvency proceedings. As a result, the impairment loss on trade receivables recognized in the 2024 financial year was reversed accordingly (see notes 37, Credit risk and note 38).

In the 2025 and 2024 financial year, losses relating to shares in the associate EFB were not recognized, as the Lenzing Group has no obligation with regard to such losses and no financial information relating to EFB is available for the 2025 and 2024 financial years.

The Lenzing Group has an outstanding purchase price receivable as well as a receivable from a long-term loan due from the purchaser of EFB (including its subsidiaries). A loss allowance has been recognized for the full amount of these receivables; accordingly, the carrying amount as at December 31, 2025, stands at EUR 0 thousand (December 31, 2024: EUR 0 thousand). In addition, a long-term performance-related purchase price component exists that depends on the future economic earning capacity of the company; this is discounted to a present value of EUR 0 thousand as of December 31, 2025 (December 31, 2024: EUR 0 thousand).

The Lenzing Group holds a lien on the remaining shares of EFB. This lien can be realized in the event of non-payment on the due date of the outstanding purchase price claim and of the long-term loan. In addition, the buyer was granted a credit line of up to EUR 0 thousand (December 31, 2024: EUR 1,376 thousand), which could be utilized in the event of predefined adverse changes in EFB’s general conditions on the sales market until December 31, 2025, at the latest. As at December 31, 2025, and as at December 31, 2024 this credit line had not been utilized.

No financial information on EFB’s consolidated financial statements for the last two financial years has been available until the time of preparation of the Lenzing Group’s IFRS consolidated financial statements, The latest available summarized IFRS financial information for EFB (100 percent) for the 2023 financial year can be found in the Annual and Sustainability Report 2024.

The Lenzing Group held 50 percent of the capital and voting rights in LDF as at December 31, 2025 (December 31, 2024: 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 38.

The following table provides summarized financial information on LDF in accordance with IFRS (100 percent):

The reconciliation of equity to the carrying amount of the investment in LDF is as follows: