Lonza Provides Adjusted Mid-Term Guidance and Emphasizes Growth Along the Healthcare Continuum®

Basel (CH), 4 March 2019Lonza announced today the adjustment of its Mid-Term Guidance 2022 to reflect the divestment of its former Water Care business unit and to emphasize Lonza's focus on growth along the Healthcare Continuum®. The adjustment consists of excluding the Water Care Mid-Term Guidance from the Lonza Group financial projections prepared in 2017. The Water Care Mid-Term Guidance was disclosed at Lonza's Capital Markets Day 2018.

In addition, Lonza is now taking the opportunity to reflect not only the Water Care divestment but also the latest strategy development. The Mid-Term Guidance 2022 was first issued in 2017. Lonza is now factoring in growth investments in its newly formed Pharma Biotech & Nutrition segment in order to participate in the anticipated market growth.

The adjusted Mid-Term Guidance for Lonza’s continuing operations (excluding the Water Care business unit) is the following:

  • Sales of CHF 7.1 billion
  • CORE EBITDA margin of 30.5%
  • CORE RONOA 35%
  • Double-digit ROIC

“This adjusted Mid-Term Guidance clearly demonstrates our focus on growing our businesses along the Healthcare Continuum® while continuing to aim for operational excellence, productivity improvements and attractive margins,” said Marc Funk, CEO Lonza.

Lonza’s Mid-Term Guidance is based on the present business composition, the present macro-economic environment, current visibility and constant exchange rates.

Lonza already announced the acceleration of its portfolio review to further strengthen the company’s position along the Healthcare Continuum®. This process is ongoing; an update on the portfolio review is currently expected to be provided in H2 2019.

News Release PDF

About Lonza

Lonza is an integrated solutions provider that creates value along the Healthcare Continuum®. Through our Lonza Pharma Biotech & Nutrition segment and our Lonza Specialty Ingredients segment businesses, we harness science and technology to serve markets along this continuum. We focus on creating a healthy environment, promoting a healthier lifestyle and preventing illness through consumers' preventive healthcare, as well as improving patient healthcare by supporting our customers to deliver innovative medicines that help treat or even cure severe diseases.

Patients and consumers benefit from our ability to transfer our pharma know-how to the healthcare, hygiene and fast-moving consumer goods environment and to the preservation and protection of the world where we live.

Founded in 1897 in the Swiss Alps, Lonza today is a well-respected global company with more than 100 sites and offices and approximately 15,500 full-time employees worldwide at the end of 2018. The company generated sales of CHF 5.5 billion in 2018 with a CORE EBITDA of CHF 1.5 billion. Further information can be found at www.lonza.com.

Lonza Contact Details

Dirk Oehlers, Investor Relations Officer

Lonza Group Ltd

Tel +41 61 316 8540

dirk.oehlers@lonza.com

Dr Kristin Köhler, Senior Manager Investor Relations

Lonza Group Ltd

Tel +41 61 316 8782

kristin.koehler@lonza.com

Constance Ward, Head External Communications

Lonza Group Ltd

Tel +41 61 316 8840

constance.ward@lonza.com

Additional Information and Disclaimer

Lonza Group Ltd has its headquarters in Basel, Switzerland, and is listed on the SIX Swiss Exchange. It has a secondary listing on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Lonza Group Ltd is not subject to the SGX-ST’s continuing listing requirements but remains subject to Rules 217 and 751 of the SGX-ST Listing Manual.

Certain matters discussed in this news release may constitute forward-looking statements. These statements are based on current expectations and estimates of Lonza Group Ltd, although Lonza Group Ltd can give no assurance that these expectations and estimates will be achieved. Investors are cautioned that all forward-looking statements involve risks and uncertainty and are qualified in their entirety. The actual results may differ materially in the future from the forward-looking statements included in this news release due to various factors. Furthermore, except as otherwise required by law, Lonza Group Ltd disclaims any intention or obligation to update the statements contained in this news release.

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