CORE Results as Defined by Lonza

Lonza believes that disclosing CORE results of the Group’s performance enhances the financial markets’ understanding of our company because the CORE results enable better comparison across years. Therefore, the CORE results exclude exceptional items such as restructuring charges, impairments and amortization of acquisition-related intangible assets, which can differ significantly from year to year. For this same reason, Lonza uses these CORE results in addition to IFRS as important factors in internally assessing the Group’s performance.

 

Major shareholders according to SIX Swiss Exchange Disclosure Office (as of 20 Feb 2018)

BlackRock, Inc.
9.67%

 

Find historical shareholding disclosures on the SIX Exchange Regulation website.

 

Lonza’s Investment Grade Rating Maintained Post FY 2017 Results

Following Lonza’s full-year 2017 results presentation on 31 January 2018 a number of the leading Swiss  banks have re-evaluated Lonza’s investment rating. Following their analysis, the banks came to the conclusion that Lonza’s investment grade rating should be maintained. At the end of 2017 the Company’s net debt amounted to CHF 3,762 million, giving  a debt-equity ratio of 0.60 and a pro-forma net debt/CORE EBITDA ratio of 2.65x.

 

Dividends

Lonza’s Board of Directors proposed a stable dividend for shareholders of CHF 2.75 per share for 2017, despite a 40.7% increase in share capital. Dividend was approved at the Annual General Meeting 2018 and the dividend of CHF 2.75 per share for 2017 was paid out of the reserve capital contribution and was free from Swiss withholding tax.

 

Currency Exposure

The currency exposure reflects as follows:

                Sales         Cost        
USD  50% 48%
EUR 14% 12%
GBP  6%  5%
SGD 0%       4% 
CNY 4%  2%
Other 27%  29%

Hedging policy / foreign exchange management policy and process:

  • Focus on natural hedge incl. financing mix
  • Contract hedging
  • Ccentralized FX management
  • Partially, active hedging of expected future FX exposure

 

Pension Benefits

The group operates defined-benefit pension plans in various countries, with the major plans being in Switzerland, Great Britain and the United States (these plans are described in Note 24.1 of the Financial Report in Lonza’s AnnualReport). For pension accounting purposes, these plans are considered as defined-benefit plans.

The significant actuarial assumptions at the reporting date (expressed as weighted averages) were as follows:

 in %  2017   2016
                                                    CH        US        UK          CH       US       UK      
Discount rate  0.66
3.50
2.52 0.69
3.99 2.72
Future salary increases 1.00 0.00 3.35 1.00 0.00 3.42
Future pension increases n/a 0.00 2.44 n/a 0.00 2.45

Additional information on Employee Benefit Liabilities e.g: are disclosed in Note 24 of the Financial Report in Lonza’s Annual Report

 

How Much Does Lonza Spend on Research and Development (R&D)?

Research & Development (R&D) costs include all primary costs directly related to this function, as well as internal services and imputed depreciation.These costs are incurred for:

  • Development of new products and services
  • Improvement of existing products and services
  • Development of new production processes
  • Improvement of existing production processes
  • Cost for patents
  • Purchase price for product and process know-how to the extent not capitalized

The research and development costs amounted to CHF 157 million (2016: CHF 144 million) and represent the full range of R&D activity. However, the consolidated income statement discloses research and development costs of only CHF 103 million (2016: CHF 84 million), as the remainder of such costs are absorbed in “Cost of goods sold” for R&D products and services sold.

Where are Lonza Shares Traded?

Lonza shares are traded at the SIX Stock Exchange in Zurich the home market for the Swiss Leader Index (SLI) and at the Main Board of the Singapore Exchange Securities Trading Limited (“SGX-ST”). Lonza has secondary listing at SGX Singapore Exchange.

 

What is the Stock Symbol?

The stock symbol for Lonza shares at the SIX is LONN VX and O6Z at the SGX-ST.

Security Number:

Valor 001384101
ISIN CH0013841017 

 

Lonza's Share Register

Share Register - Registration
c/o Computershare Schweiz AG
P.O. Box
CH-4601 Olten, Switzerland
Tel +41 62 205 7700
Fax +41 62 205 7790

share.register@computershare.ch

 

How Many Shares Does Lonza Have Issued?

The nominal amount of Lonza Group Ltd’s issued share capital increased from CHF 52,920,140 as of 31 December 2016 to CHF 74,468,752 as of 31 December 2017. As a consequence of the capital increase as of 10 May 2017 through a rights offering, the calculation of earnings per share and diluted earnings per share were adjusted by the factor resulting from the rights offering. The underlying weighted average number of shares was adjusted for December 2016 to 56,719,245 for the calculation of earnings per share and to 57,046,652 for the diluted earnings per share.

Registered shares
2017 2016
Number of shares issued
 74,468,752 52,920,140
Number of shares ranking for dividend
 74,242,832 52,791,249
Par value per share CHF  1 1
Profit for the period (equity holders of the parent) million CHF  726 301
Diluted profit for the period million CHF  726 301
Ratios per security
 2017 2016
Weighted average number of shares
 67,878,060 56,719,245
Diluted weighted average number of shares
 68,460,234 57,046,652
Basic earnings per share CHF  10.70 5.31
Diluted earnings per share CHF  10.60 5.28

 

What is Lonza Doing to Protect the Environment?

At Lonza we are committed to providing the highest quality products and services that delight our customers while also minimizing our impact on the environment, conserving energy and natural resources, and helping to improve the quality of life. As part of our broad corporate social responsibility efforts, the key elements of our approach to sustainability are the following:

  • Empowering our employees within a culture of innovation
  • Extracting the highest efficiency from our raw materials, including energy
  • Measuring and reporting our environmental impact
  • Collaborating with industry associations and other stakeholders to improve continuously

For more information, please visit our Environment, Safety & Health section.

 

What is Lonza Position on Corporate Governance?

Lonza has implemented modern corporate governance structures to ensure accountability, responsibility and transparency throughout the Group and for its shareholders. Corporate governance reporting is in compliance with the guidelines of SWX Swiss Exchange. Learn more about Lonza position on Corporate Governance.

 

Where Can I Obtain More Information?

For more information contact the Investor Relations team.