It is my pleasure to welcome you to the Annual Report 2025 – a year characterized by sustained momentum, disciplined execution of the One Lonza strategy, and strong top line and profitable growth. Throughout the year, the Board of Directors focused on providing the company with strategic direction, strengthened governance and enhanced the board’s mix of skills, expertise and effectiveness.
2025 was marked by Lonza’s transformation into the world’s leading pure play CDMO. The Capsules & Health Ingredients (CHI) business was carved out and then sold in March 2026 to Lone Star Funds, a value investor that has the necessary capabilities to support CHI on the next stage of its growth journey. Various smaller noncore assets such as the Personalized Medicines and MODA® software businesses were also divested earlier in 2026.
The Board has the ambition to be industry leading and, in this context, introduced a Board skills matrix to help ensure that we have a dynamic mix of fresh perspectives, complementary competences, diversity and independence around the Board table. We also sharpened the role and agenda of each Board committee. For example, we updated the name and focus of the People and Governance Committee (PGC) to emphasize the importance of leadership, talent and organizational health. We also asked an external partner to perform an evaluation of the functioning of the Audit Committee. Finally, each Board member now serves on two Committees, thereby enhancing their proximity to the business and at the same time ensuring that responsibilities are evenly distributed across the Board. Together, these governance updates enable us to become an agile, future-focused Board that works effectively within a dynamic operating environment.
The Board strengthened its effectiveness in 2025 through deeper interactions with the Executive Committee (EC) and conducted more visits to key locations in the Lonza network. We visited the sites in Geleen (NL), Vacaville (US) and Stein (CH) which each provided a good opportunity to become better acquainted with some of Lonza’s most important assets and to engage directly with many Lonza colleagues.
The Board held a strategy off-site meeting with the EC in June 2025 and attended a Board offsite in October 2025. The Board performed its own self-evaluation, supported with input from the EC, and engaged a third party to assist in enhancing Board dynamics. The Board took part in educational sessions that were held each quarter and new Board members completed comprehensive onboarding programs. These included introductory meetings with the EC and other senior business leaders, completing various trainings and visiting selected Lonza sites. I continued my weekly dialogue with the CEO throughout the year and met many colleagues as part of a sustained effort to maintain momentum on the One Lonza journey.
We continued to diversify and enhance the composition of the Board by adding competences that are relevant to Lonza’s current and future needs. Juan Andres, Eric Drapé, and David Meline joined the Board following their successful elections at the AGM in May 2025. All three bring extensive experience in manufacturing, capital discipline and quality, and have diverse international backgrounds that are well suited to Lonza. Juan and Eric bring a customer-centric lens, having been business partners of Lonza in the past, whilst David has a wealth of experience in finance and IT.
In October 2025, we announced the nomination of Claudia Süssmuth-Dyckerhoff as Vice-Chair of the Board and she will become a member of the Remuneration Committee and Strategy and Innovation Committee, subject to her election at the AGM in May 2026. Claudia brings significant international experience in healthcare, life sciences as well as perspectives on the Asian markets.
We then announced the board nomination of Sami Atiya in February 2026. Sami will become a member of the Strategy and Innovation Committee and People and Governance Committee, subject to his election at the AGM in May 2026. Sami brings deep and relevant experience in robotics, automation and A.I. having held senior roles at ABB and Siemens, amongst other leading companies. Sami also has a passion for healthcare.
Most recently, we announced the nomination of Stephen Fry to the Lonza Board. Steve will become a member of the People and Governance Committee and Audit and Compliance Committee, subject to his election at the AGM in May 2026. Steve has been the CHRO of Eli Lilly for over a decade and brings deep expertise in the biopharmaceutical industry, performance culture and organizational health.
As part of the planned Board composition for 2026, Marion Helmes will become Chair of the Audit and Compliance Committee, having been a member of this committee since joining Lonza. This transition reflects the Board’s commitment to structured and seamless succession planning.
Barbara Richmond and Jürgen Steinemann will stand down from the Board at the AGM in May 2026 following their twelve-year tenures at Lonza. Roger Nitsch has decided not to stand for re-election in order to further focus on his entrepreneurial activities. I would like to extend my sincere thanks to Jürgen for his collaboration in particular in his capacity as Vice Chair since my arrival in 2024, and to Barbara and Roger for their dedication and commitment to the Lonza Board during their tenures.
Sustainable value creation is a priority for Lonza and a responsibility that is collectively shared across our Board. Our corporate responsibility is accordingly incorporated into the company's governance structure and remuneration policy. All employees are committed to creating value by reducing Lonza’s environmental footprint, making active social contributions and supporting our communities.
In 2025, we stayed well on track to achieve our science-based near-term sustainability targets, including our commitment to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 42% by 2030 (against the 2021 base year). In 2025, Lonza achieved reductions of more than 50% in both GHG and waste intensity against the 2018 base year, surpassing both 2030 targets ahead of plan. We continued to expand renewable sourcing across all key regions in 2025. Since the beginning of 2026, all electricity purchased across the US, Europe and China has been from renewable sources.
The Board is committed to engaging with external perspectives which provide valuable input as we drive the strategy and overall performance of the business. Since stepping into the role of Chair, I have prioritized regular dialogue and interactions with our shareholders and launched both an annual Chairman’s roadshow and a dedicated annual remuneration roadshow. We have also retained the role of Lead Independent Director to ensure clear and open communications with our investor community, if ever this would be needed.
The Board of Directors will propose a 25% increase in the dividend to CHF 5.00 per share at the Lonza AGM in May 2026. Subject to approval, 50% of the dividend will be paid out of the capital contribution reserve, ensuring it remains free from Swiss withholding tax.
As Lonza concludes a year of significant progress and positive transformation, I would like to extend my sincere thanks on behalf of the Board to all our shareholders and stakeholders for their continued confidence and partnership. I would also like to personally thank our 20,000 Lonza colleagues for their tireless efforts throughout 2025, and for their pride and passion in delivering for our shareholders, our customers and the patients they serve.
Chair of the Board of Directors
