lenzing.com

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 financial year. Internal reporting to the chief operating decision maker, i.e. the plenary Managing Board, was adjusted accordingly as at January 1, 2021. A retrospective presentation of the segment reporting in accordance with the new composition of the segments is not possible due to the significant changes in the segments and the resultant unavailability of financial accounting information. For this reason, the tables below show the old composition of the segments 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 classifies its segments based on the differences between their products, which require individual technologies and market strategies.

The Division Fiber produces all three generations of wood-based cellulosic fibers and markets them under the product brands TENCEL™, VEOCEL™, LENZING™ ECOVERO™ and LENZING™. The products made from lyocell, modal and viscose fibres are used for the production of textiles as well as nonwovens and special applications.

The Division Pulp produces and procures dissolving pulp, which is the necessary primary and intermediate product for fiber production. The pulp is used for the company’s own cellulosic fiber production and marketed externally. The fiber and pulp production systems are used and managed independently of each other.

“Others” mainly includes central headquarters functions, overarching 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

Recon­ciliation

Group

Revenue from external customers

1,904,323

284,177

6,124

2,194,624

0

2,194,624

Inter-segment revenue

0

475,149

0

475,149

(475,149)

0

Total revenue

1,904,323

759,326

6,124

2,669,773

(475,149)

2,194,624

 

 

 

 

 

 

 

EBITDA (segment result)

214,042

210,080

(58,415)

365,707

(2,767)

362,941

EBIT

107,423

164,176

(68,190)

203,409

(2,794)

200,615

 

 

 

 

 

 

 

Amortization of intangible assets and depreciation of property, plant and equipment and right-of-use assets

107,987

46,239

10,016

164,242

27

164,269

Income from investments accounted for using the equity method

809

(454)

(3,896)

(3,541)

0

(3,541)

Other material non-cash income and expenses

22,873

(5,127)

4,404

22,149

0

22,149

Acquisition of intangible assets, property, plant and equipment and biological assets (CAPEX)

298,741

577,838

5,740

882,319

(37,986)

844,333

 

 

 

 

 

 

 

EBITDA margin1

11.2 %

27.7 %

(953.9)%

13.7 %

-

16.5 %

EBIT margin2

5.6 %

21.6 %

(1,113.5)%

7.6 %

-

9.1 %

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).

Information on business segments (former segment structure)
EUR '000

2021

Fibers

Lenzing Technik

Other

Segment total

Recon­ciliation

Group

Revenue from external customers

2,178,466

14,200

1,958

2,194,624

0

2,194,624

Inter-segment revenue

148

2,502

3,461

6,111

(6,111)

0

Total revenue

2,178,614

16,702

5,418

2,200,735

(6,111)

2,194,624

 

 

 

 

 

 

 

EBITDA (segment result)

360,862

1,221

926

363,010

(69)

362,941

EBIT

199,949

(70)

805

200,684

(69)

200,615

 

 

 

 

 

 

 

Amortization of intangible assets and depreciation of property, plant and equipment and right-of-use assets

162,856

1,291

122

164,269

0

164,269

Income from investments accounted for using the equity method

355

0

(3,896)

(3,541)

0

(3,541)

Other material non-cash income and expenses

21,939

121

20

22,080

69

22,149

Acquisition of intangible assets, property, plant and equipment and biological assets (CAPEX)

843,526

605

202

844,333

0

844,333

 

 

 

 

 

 

 

EBITDA margin1

16.6 %

7.3 %

17.1 %

16.5 %

-

16.5 %

EBIT margin2

9.2 %

(0.4)%

14.8 %

9.1 %

-

9.1 %

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).

Information on business segments (former segment structure) (previous year)
EUR '000

2020

Fibers

Lenzing Technik

Other

Segment total

Recon­ciliation

Group

Revenue from external customers

1,621,659

9,021

1,927

1,632,607

0

1,632,607

Inter-segment revenue

2,628

14,004

2,656

19,288

(19,288)

0

Total revenue

1,624,287

23,025

4,583

1,651,895

(19,288)

1,632,607

 

 

 

 

 

 

 

EBITDA (segment result)

186,4931

2,1551

1,168

189,8161

2,511

192,3271

EBIT

26,5981

1,0821

1,040

28,7211

5,137

33,8581

 

 

 

 

 

 

 

Amortization of intangible assets and depreciation of property, plant and equipment and right-of-use assets

161,874

1,072

128

163,075

(2,626)

160,448

Income from investments accounted for using the equity method

4,883

0

790

5,674

0

5,674

Other material non-cash income and expenses

38,357

(216)

27

38,168

(69)

38,099

Acquisition of intangible assets, property, plant and equipment and biological assets (CAPEX)

664,680

4,066

15

668,760

0

668,760

 

 

 

 

 

 

 

EBITDA margin2

11.5 %1

9.4 %1

25.5 %

11.5 %1

 

11.8 %1

EBIT margin3

1.6 %1

4.7 %1

22.7 %

1.7 %1

 

2.1 %1

 

 

 

 

 

 

 

Segment assets

3,020,899

20,776

2,474

3,044,149

1,118,839

4,162,988

Thereof investments accounted for using the equity method

27,934

0

1,154

29,088

0

29,088

Segment liabilities

675,643

9,946

1,674

687,263

1,594,299

2,281,562

1)

Reclassification of capitalized borrowing costs, net interest from defined benefit plans and commitment fees from EBIT/EBITDA to the financial 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 significant non-cash operating expenses and income relate to non-cash measurement effects from receivables, inventories 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 interest and tax (EBIT) to the earnings before interest, tax, depreciation 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)

200,615

33,8581

Amortization of intangible assets and depreciation of property, plant and equipment and right-of-use assets

164,269

160,448

Income from the release of investment grants

(1,944)

(1,979)

Earnings before interest, tax, depreciation and amortization (EBITDA)

362,941

192,3271

 

 

 

Segment amortization and depreciation

(164,242)

(163,075)

Consolidation

(27)

2,626

Income from the release of investment grants

1,944

1,979

Earnings before interest and tax (EBIT)

200,615

33,8581

 

 

 

Financial result

(17,689)

(11,607)1

Earnings before tax (EBT)

182,926

22,251

1)

Reclassification of capitalized borrowing costs, net interest from defined benefit plans and commitment fees from EBIT/EBITDA to the financial result (see note 2).

The carrying amounts for segment reporting are based on the same accounting policies applied to the IFRS consolidated financial statements.

Information on products and services

Revenue from external customers can be classified by products and services as follows:

Revenue from external customers by products and services (new segment structure)
EUR '000

 

2021

Wood-based cellulosic fibers

1,833,623

Co-products of fiber production

52,811

Mechanical and plant engineering, engineering services and others

17,890

Division Fiber

1,904,323

 

 

Pulp

162,176

Biorefinery-products and energy

94,412

Wood and other

27,590

Division Pulp

284,177

 

 

Others

6,124

Revenue as per consolidated income statement

2,194,624

Revenue from customers by products and services (former segment structure)
EUR '000

 

2021

2020

Wood-based cellulosic fibers

1,833,623

1,362,797

Sodium sulfate and black liquor

52,811

45,477

Pulp, wood, energy and other

292,181

216,013

Segment Fibers

2,178,614

1,624,287

 

 

 

Mechanical and plant engineering and engineering services

16,702

23,025

Segment Lenzing Technik

16,702

23,025

 

 

 

Other and consolidation

(693)

(14,705)

Revenue as per consolidated income statement

2,194,624

1,632,607

No single external customer is responsible for more than 10 percent of external revenue.

Information on geographic regions

The following table provides a classification of revenue from external customers by sales market by geographic area.

Revenue from external customers by geographic regions
EUR '000

 

2021

2020

Austria

83,866

48,564

Europe (excl. Austria, incl. Turkey)

635,420

476,345

Asia

1,286,462

942,380

America

177,760

155,351

Rest of the world

11,115

9,967

Revenue as per consolidated income statement

2,194,624

1,632,607

Revenue is allocated according to the geographic region of the customer.

The following table shows non-current assets (excluding financial instruments and tax assets; reconciled to the consolidated figures for total non-current assets), total assets and acquisition of intangible 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

991,183

1,011,150

1,447,738

1,378,876

73,442

101,217

Europe (excl. Austria, incl. Turkey)

188,492

186,439

285,917

263,807

9,367

13,768

Asia

758,622

511,046

1,108,474

764,399

229,434

159,004

America

1,208,818

594,111

1,287,797

637,066

532,090

394,770

Subtotal

3,147,115

2,302,746

4,129,926

3,044,149

844,333

668,760

 

 

 

 

 

 

 

Reconciliation to consolidated figures

57,386

58,456

1,192,844

1,118,839

0

0

Consolidated total

3,204,501

2,361,202

5,322,771

4,162,988

844,333

668,760

The above amounts cover all segments of the Lenzing Group. Additional information on the segments is provided in the management report of the Lenzing Group as at December 31, 2021.

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