Value creation at a traditional company
Textile and nonwovens
EUR 2,500 million
8,300
1
Challenge: Complex structures and significant financial challenges
In 2023, Lenzing AG reported a net loss of EUR -593 million and stagnant revenues. Operational performance was far below expectations. The organization was overly complex with too many management layers, unclear responsibilities and slow decision-making. Some sites struggled due to a combination of inconsistent strategy execution, high cost and difficult market environment.
2
Approach: Identify success factors and consistently implement them
Bickel & Company and Lenzing launched a Value Creation Program (VCP) focused on cost leadership, overhead reduction, and operational excellence. Key measures included:
- Monthly reporting to the Board and the VCP Committee for greater transparency
- Optimization of personnel cost structure as well as direct and indirect expenses
- Special turnaround programs for specific locations with new management teams and focused workflows
- Establish a central operations team to increase efficiency at all locations
- Strengthening VCP governance and implementing robust data management for sustainable transformation
2
Approach: As lean as necessary, as strong as possible
To achieve the necessary turnaround, a comprehensive earnings improvement programme was set up. The focus was on streamlining the corporate headquarters, increasing the profitability of the two business units "Systems and Robotics" as well as realigning and improving their manageability.
3
Result: Target exceeded, progress secured
Within one year, Bickel & Company significantly exceeded its original target and laid the foundation for further progress:
- Achieved a VCP effect of over EUR 130 million in 2024, enabling a 30% increase in EBITDA compared to 2023 and a significant increase in free cash flow
- Sustainable improvement initiatives launched for 2025
- Supporting the implementation of a new operating model
- Significant improvement in operational KPIs and key cost drivers
- Significant improvement in the operational performance of the turnaround sites along the entire value chain
"Walter Bickel and his CTO team are passionate implementers. They always think holistically and know how to convincingly translate strategy, operating model and necessary adjustments to structures, processes and the cost base into operational measures while taking the organization with them. Their consistency in implementation and their integrated approach guarantee that their measures are not only visible in the P&L in the short term, but also lead to a significant increase in the company's performance in the long term. At Lenzing, they clearly exceeded the targets set for the performance program within the defined period and thus created a solid basis for a successful financing transaction."
