Gentlemen, welcome to the Lenzing AG Q2 and Half Year Results 2026 conference call and live webcast. I would like to remind you that all participants will be in listen only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Georg Kasperkovitz, CEO. Please go ahead, sir. Good afternoon, everyone. Thank you for joining us. We're excited to present Lenzing's half year one 2026 results after recently presenting our new strategy to you. Over the course of today's presentation, we'll walk you through the key highlights of the last six months, discuss the market dynamics, and of course, present our half year one 2026 financial results. I will take you through the highlights in the market. Mathias Breuer, our CFO, will lead you through the financials. The headline for the first half is Lenzing resilience. Against the backdrop of heated demand volatility and uncertainty as well as the cost increases caused by the Middle East conflict, the business demonstrated resilience and improvement. Revenue was only modestly lower than half year one 2025, despite a particularly strong half year one 2025 comparison base and the consequent pruning of low margin volumes in half year one 2026. Holding close to that level with increased average sales prices is a reassuring achievement. It reflects our deliberate focus on value over volume and the self-help measures, which we already vigorously pursue. Below the top line, the same discipline shows through in strong gross profit and EBITDA improvement of the fiber division, cash generation, and a further reduction in net debt, a development towards a healthier financial profile, also at the core of our recently announced new strategy. The takeaway for you is simple: a robust first half that keeps us firmly on track and a strong platform from which to execute. Overall, the market backdrop through the first half was constructive. Demand across our portfolio was robust as customers built up some inventory along the empty value chain, and supply demand dynamics worked in our favor, evidenced by net margin improvement of most fiber products. In textiles, end demand was stable across Europe and North America, and apparel retail remained resilient. The underlying consumer demand actually held up better than the headlines might suggest. In nonwovens, demand remains firm, underpinned by high downstream operating rates. The continued brand-led shift towards cellulosic plays directly to our positioning. Lastly, in the [sawing wood part], demand is tied to cellulosic fiber production. A structurally undersupplied market kept the pricing environment favorable. The bottom line for us, stable demand across all three parts of the portfolio and a supportive pricing environment, which is exactly what you want to see underpinning the strategy. The key point of this slide is that elevated prices of competing fibers are a structural tailwind for us, and one we expect to persist. Why it matters, our cost competitiveness versus alternative fibers continues to improve. Year- to- date, cotton is up around 17% and polyester around 20%, against viscose at roughly +15%. That gap means cellulosic fibers have become relatively cheaper than the substitutes' prices, which pulls demand towards our fiber family and gives us pricing headroom over time. Crucially, this is sustainably rather than a one-off. Cotton remains supply constrained and polyester pricing is expected to stay elevated by higher crude oil and natural gas prices in the wake of the Middle East conflict. We expect these elevated competing fiber prices to persist, supporting both demand and pricing for cellulosics over the medium term. On the cost side, input costs remain above historic levels, the drivers are largely structural, including the Middle East conflict. Energy prices, particularly caustic soda, remain elevated through the second quarter. Initial easing in Q1 2025 has already reversed. We expect volatility to persist while the geopolitical situation remains unresolved. Caustic soda, in particular, remains one of our key cost headwinds, sulfur has been even more pronounced, up as much as a threefold year- to- date, which continues to pressure the cost base. The reassurance in this, while these headwinds are real, we're actively managing them through the cost pass-through and the self-help measures I will come to, that is what has protected our margin. Let me put the conflict in perspective. Important distinction is that its main impact is on our input cost and supply chain volatility, not on customer demand, which has, as in previous crises, remained resilient. I will follow up on the response that Lenzing is providing to the current market uncertainties. Good afternoon also from my side. Mathias here. This is the part that really matters. We as Lenzing, we don't react passively. We take an active approach with full cost passthrough and pricing excellence, which remain a key strategic priority to us. We use the cost increases to adjust the overall pricing level. The order intake remains robust, supported by positive demand. On the supply side, we continue to diversify, especially with regard to key chemicals. We monitor the pricing and the cost structure in a weekly structure process, we address the developments proactively. I think this we have proven with our track record, our cost measures are well underway. Around EUR 25 million of the EUR 120 million program that we announced also last week are already fully in the books and successfully realized and contribute to the current profitability. While the conflict creates some volatility, we have a clear action plan going forward to mitigate as much as possible. If you go into quantities and price developments, we can see on the fiber side that the volumes remained broadly stable in the quarter, which is a solid result in a still challenging market and with our efforts to cut down on generic segments. At the same time, selling prices increased during quarter two 2026, approximately 6% both in U.S. dollars and in euro. The stable volumes together with the higher prices demonstrate the continuous pricing discipline that sits in the heart of our value over volume approach. In pulp, production volumes increased quarter on quarter, so at 300,000 tons production in the second quarter. Sales volumes continue to reflect the normal quarterly fluctuations we see in this business, which is driven by shipment patterns. Average selling prices improved quarter- on- quarter, leaving the rock bottom level of $780 per ton, you remember by end of last year, to currently a level of $850 per ton, reaching a level of approximately $900 within quarter three. On that slide, you can see the translation into euro per kilogram, but as the market is trading in U.S. dollar, I just try to refer on that level. In short, a steady, dependable pulp performance that added to the group's progress in the quarter. To some of the markets, overall, we continue to see a constructive backdrop. Challenges remain, particularly on the cost side, but the demand across our portfolio is robust and favorable supply-demand dynamics continue to support our results. With the market backdrop in mind, let us now turn to the financial performance. Looking across the past five quarters, revenue have remained broadly stable, a sign of resilience given everything what is happening around us. The strategic focus remains firmly on value over volume. I need to repeat that, including the deliberate pruning of unprofitable volumes. That discipline is increasingly reflected in the profitability. EBITDA grew by around 9% year-over-year, despite largely unchanged revenues, supported by both pricing initiatives and the cost excellence and the self-help measures that we have communicated and that we have discussed. The conclusion is that the improvement of our profitability does not only start with the new strategy that we announced last week, it is well underway and it will be amplified going forward. Very important also to understand our performance is the quarterly development, and this bridge should show the way from quarter one into quarter two, and how we drove the improvement. Positive contributions from pricing, from volume, and from mix effects across fiber and pulp supported the quarter. Compared to the first quarter, we had accounted for significantly lower one-offs. No positive impact from TreeToTextile first-time consolidation, which impacted first quarter performance. Lower sales of CO2 certificates and a lower impact from biological asset valuation compared to quarter one. On the cost side, the cost inflation or higher input cost amounted to EUR 11 million quarter-over-quarter. Our cost base is increased by EUR 11 million. That delivered an EBITDA increase of roughly 6% versus the first quarter. More important on quarter two, after the exclusion of positive one-off items like the sale of CO2 certificates, EUR 5.5 million, positive FX development, which accounted for approximately EUR 3 million, and positive valuation of the biological asset of approximately EUR 10 million, the operational EBITDA is clearly above the EUR 100 million run rate. This is a very important message that we wanted to provide you. The takeaway, the operational initiatives continue to deliver tangible improvements, successful execution coming through here in the numbers. Working capital, CapEx and free cash flow, we see, and I think the overarching message for this slide is disciplined financial management and continued execution. This is what we all also have proven in last year and we continue on that path. Working capital remains a key focus area for us. Trading working capital is down to around 17.6% of revenue. The main driver versus June 2025 was inventory optimization. The inventories came down materially year-on-year versus quarter one 2026. The small sequential uptick simply reflects higher trade receivables in line with stronger quarter two revenue. Underlying discipline is intact. Working capital optimization for sure remains an active, ongoing focus for us. On CapEx, it is elevated compared to quarter two 2025, but remains within our budget and plans. It was a deliberate step up to support the execution of the new strategy, like the investment in the tampon business. On unlevered free cash flow, the year-on-year comparison needs some context. Quarter two 2025 was flattered by one-off effects and a lower level of CapEx, as we can see. This year's quarter two looks lower, largely for those two reasons. If we look on a half-year level, we see an improving trend. If you take a step into working capital development, here I think this reiterates the point that I have made on the last slide. Trade working capital overall improved. One of the key drivers you can see it here was the optimization of the inventory level, both in fibers and dissolving wood pulp. This is certainly the standout contributor to that development. Trade receivables, trade payables have remained relatively stable over the recent quarters. This again underlines the broader point. We continue to actively identify and realize optimization opportunities on the way. With regards to net debt and cash position, the net debt position remains very stable. Net debt has come down slightly year-on-year, which demonstrates the disciplined balance sheet management that we have. Leverage is by end of second quarter at 3.6x EBITDA, net financial debt to EBITDA, up from 3.3x by end of 2025. Reason behind is that last 12-months view, which includes now the weaker performance of quarter three, quarter four, 2025, while eliminating the strong quarter one 2025. Liquidity remains very strong, provides a solid cushion. The slight decline reflects the repayment of outstanding maturities rather than any deterioration. The theme throughout is prudent financial management and continued progress towards the lower leverage we're targeting over the midterm. On the maturities, I need to state out that this maturity profile shown here is a snapshot as of today. It does not include any announced or potential capital structure initiatives. Proactive and disciplined management of the maturities remains key priorities, as I said, in order to support the implementation of the new strategy with ample financial headroom. Over time, the intention is to further smoothen and balance the profile by proactively addressing maturities and improving the debt structure. With the financial picture covered, let me now hand back to Georg for the outlook. Thank you, Mathias. Let me briefly reiterate the strategy. We communicated recently to create a more focused, more profitable, and resilient leader in supplying fiber and pulp. We remain focused on executing on two fronts, growing nonwovens and resetting the fiber textile business. Together with our cost and capital efficiency measures and continued innovation, this is what creates a more focused, more profitable, and more resilient business, moving towards a balanced portfolio, a leaner cost base, and fewer, stronger sites. Turning to the outlook. On the market, the pricing environment is expected to remain constructive and is currently at elevated levels. On costs, headwinds expected to remain elevated, particularly energy and raw materials, and we expect them to persist. We are actively mitigating this through continuous monitoring of pricing and costs, active cost passthrough, and our profitability enhancement initiatives. On execution, we remain laser-focused on delivering the new strategy. That is the management team's single largest priority. On the financial guidance, over the midterm, the strategic ambition is clear. Return to revenue growth, deliver an EBITDA uplift of approximately EUR 150 million and thus achieve an EBITDA margin of 20%-25%, and reduce the leverage to below 2.5 x. Everything we are here executing, the cost program, capital efficiency measures, and continued innovation, is geared towards delivering these midterm targets. Thank you, Mathias. With that, I would like to conclude today's presentation. Thank you very much for your attention, and we are very much looking forward to your questions. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode and eventually turn off the volume from the webcast. Anyone who has a question may press star and one at this time. Our first question comes from the line of Patrick Steiner with ODDO. Please go ahead. Good afternoon, Patrick Steiner speaking. Few questions from my side. I start with the first two or three. Firstly, on caustic soda prices. If I understood this correctly, you said prices went up again after an ease in Q1. A few questions related to that. Firstly, how much do you spend on caustic soda in absolute terms in the second quarter, if you have that number for me? Are these higher costs already reflected in the Q2 results, or should we expect some kind of lag effect with higher costs in the third quarter? That's the first one. A second one on volumes. If I see it correctly, volumes in Q2 were quite stable actually, right? Most of the revenue increase came from pricing. Can you explain to us why? We're actually a bit expecting of a more pronounced volume increasement related to pre-buying activities of Asian customers, and also maybe what your views are on volumes into Q3 and Q4. Thank you. Good afternoon, Patrick. I'm going to take the first question on caustic soda. The monthly spend on caustic soda, which we use in four production sites, is slightly above EUR 10 million per month. With regard to will that now peak or is the peak already in quarter two, with regard to caustic soda, we at the moment expect a similar level into quarter three compared to quarter two. What we currently see is that sulfur is peaking potentially in quarter three with a higher price compared to quarter two. The spend on sulfur is approximately less than EUR 5 million a month. On the volumes, I hand over to Georg. Thank you for the question on volume. Let me start with volumes on fiber, because that also pulls through to pulp. In Q2, demand for our fiber products was strong for a couple of reasons. First of all, man-made cellulosic fibers became more cost competitive than alternative fibers, oil-based fibers. Second thing, we have a new sales organization, which is more effective. I think this is all reflected in our Q2 volumes. If you look at Q3, the outlook is very promising, and also for Q4, as of today, it looks good. I need to say, especially textile fibers, this is a spot market, so if customers tell us now that they will order in Q4, that can change always. Yeah. With regards to the question, why not increase the volume? In principle, we are running on full capacity, and whatever we produce is currently being sold out. One lever also of reducing the inventory was we could also sell off some of our, let's say, warehouse stocks that we have upheld over the last month. We simply don't have more capacity to increase volumes at the moment. Thank you very much. That's very helpful. As a reminder, if you wish to register for a question, you may press star and one. Ladies and gentlemen, we have no more registration for other questions. I would like to turn the conference back over to Mr. Kasper. Apologies, Mr. Steiner wants to ask another question. Yes, thank you very much. A few more left from my side. First of all, I saw SG&A costs going up in Q2 compared to Q1. I suppose that is related to annual inflation in salaries, basically. If not, please correct me, but should we expect a further increase in Q3? Secondly, can you maybe give us more information on your pricing negotiations with customers going forward? I would probably expect for Q4 and beyond. What's the feedback from customers? Is it getting tougher, or how is the situation? Thanks. Let me start with your question on pricing negotiations and demand from the customers. Of course, the increased price level for all types of fibers, not only man-made cellulosic fibers, puts pressure along the supply chain. So far, we are able to defend the current price level, and customers also understand that this is partly driven by underlying costs. I'm confident that we can keep the price level until the end of the year, as of today. Mathias, will you cover SG&A? Yeah. I'm going to take over for SG&A. First, on SG&A costs, we certainly had the, let's say, inflationary increases or given the labor or the salaries, so the tariff increase. Secondly, we are also reporting outgoing freight in the SG&A bucket, which heavily increased over the quarters. All right, thank you very much. Thinking about Q3, Q4, we should expect stable volumes and stable to maybe slightly increasing prices as a result of prices having increased over the months, and maybe we see another positive effect in Q3 in terms of prices, while we see maybe a slightly higher cost base. Would this make sense in your view? Q3, I would say it's more or less confirmed. It's all planned. We continue to run all lines at full capacity, so stable volumes compared to Q2. Yeah. As of today, I would expect the same thing for Q4. Yeah. In terms of prices, they might go up a little bit if underlying costs increase, because then we need to pass it through. Yeah. At foreseeable cost developments, I would expect stable prices. Thank you very much. Last one from my side on CapEx for full-year 2026. Maybe in absolute terms, what you would expect, and also how much do you preserve for maintenance CapEx? Thank you. Yeah. 2026 is going to be a year that is, I would say, characterized by LTO CapEx There is no big strategic CapEx except for the tampon business that we invest in Lenzing, which in total is EUR 15 million. The amount for 2026 that we expect is in the area of approximately EUR 150 million. Right. Thank you very much. Yeah. Ladies and gentlemen, there are no further questions. I would like to hand over back to Mr. Kasperkovitz for any closing remarks. Thank you everyone for joining today. If there are no further questions, we close today's call. Thanks again. Have a nice day. Enjoy the summer. Goodbye. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. 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