Lonza : Investor Update Details Business Structure, Divisional Dynamics, New External Reporting and Guidance

Basel - Today, Lonza sets out the new structural blueprint for its LPBN segment.

The structure comprises four business divisions1

Biologics (representing 47% of Group sales)

Capsules and Health Ingredients (representing 27% of Group sales)

Small Molecules (representing 16% of Group sales)

Cell & Gene Therapy and Bioscience (representing 10% of Group sales)

These will be supported by five strategic global business functions: Operations, Quality, Commercial / Marketing, Finance and Human Resources. The business is currently in a period of transformation, and the new structure will become operational from 1 January 2021. External Financial reporting will be updated to reflect the new structure.

The new structure has been developed to increase Divisional end-to-end performance accountability and to strengthen governance and process excellence from Global Functions, as Lonza proceeds with the divestment of its LSI segment. The structural design is supported by the set of internal cultural values, which include: collaboration, accountability, focus, integrity and openness.

DIVISIONAL UPDATES

The investor update provides an overview of the operating model for each division. This also included an overview of key statistics and an insight into existing performance and future plans. A summary of 2020 business performance indicators is listed below: Contracted business in Biologics and Small Molecules in 2020 is up high double-digit versus 2019, driven by new assets coming on line and strong market demand

In 2020, new customer acquisition across Biologics, Small Molecules and Cell & Gene Therapy continues, showing a >30% increase over 2019

New projects in Biologics and Small Molecules in 2020 is up >30% versus 2019

UPDATED FINANCIAL REPORTING

The updated financial reporting fully reflects the new divisional structure, thereby increasing granularity on Divisional performance for investors. At a divisional level, key performance indicators will include sales, CORE EBITDA margin and CAPEX. The new reporting steering model will also eliminate selected measures, including CORE EBIT and CORE RONOA APMs and increase the threshold for non-CORE adjustments to CHF 20m per event.

About Lonza

At Lonza, we combine technological innovation with world class manufacturing and process excellence. Together, these enable our customers to deliver their discoveries in the healthcare, preservation, and protection sectors. We are a preferred global partner to the pharmaceutical, biotech and specialty ingredients markets. We work to prevent illness and promote a healthier world by enabling our customers to deliver innovative medicines that help treat or even cure a wide range of diseases. We also offer a broad range of microbial control solutions, which help to create and maintain a healthy environment.

Founded in 1897 in the Swiss Alps, Lonza today operates in 120 sites and offices in more than 35 countries. With approximately 15,500 full-time employees, we are built from high-performing teams and of individual employees who make a meaningful difference to our own business, as well as the communities in which we operate. The company generated sales of CHF 5.9 billion in 2019 with a CORE EBITDA of CHF 1.6 billion.

Contact:

Dr. Sanna Fowler

Tel: [phone]

Email: [e-mail]

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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