CORE results as defined by Lonza

Lonza believes that disclosing CORE results of the Group’s performance enhances the financial markets’ understanding of the company because the CORE results enable better comparison across years. The CORE results concept, which is used in the internal management of the business, is based on the IFRS results, excluding the following adjustments:

  • Amortization of intangible assets resulting from business combinations
  • Impairments (including reversal of impairments) of intangible assets, property, plant & equipment, goodwill and assets held for sale
  • Restructuring programs in excess of CHF 0.5 million
  • Acquisition and integration costs related to business combinations
  • Costs related to divestitures of businesses as well as disposal gains and losses
  • Impacts from discontinued operations
  • Environmental remediation costs related to divested / inactive sites as well as remediation projects in excess of CHF 10 million
  • Defined benefit plan settlements and curtailments in excess of CHF 10 million
  • Lonza’s share of profit or loss from associates and joint ventures

Alternative Performance Measures

The reported financial information also comprise certain Alternative Performance Measure (APMs) which are not accounting measures as defined by IFRS (non GAAP measures), in particular the CORE results, the (CORE) RONOA, the (CORE) ROIC and the Operational Free Cash Flow.

Initiation of S&P credit rating

Lonza announced the initiation of a public credit rating with Standard & Poor’s (S&P), which resulted in a BBB+ rating with a stable outlook. Lonza is committed to maintaining an investment-grade rating going forward.

Dividends

A dividend increase for shareholders of CHF 0.25 per share to CHF 3.00 per share was accepted by the shareholders at Lonza Annual General Meeting on 6 May 2021. The proposal represents a pay-out ratio of 25.8% of 2020 reported net profit .Fifty percent of this dividend will be paid out of the capital contribution reserve and will be free from Swiss withholding tax.

Dividend payment history

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Currency exposure1

The currency exposure reflects as follows:


Sales Cost2
USD 46% 38%
EUR 23% 27%
CHF 14% 20%
GBR 10% 6%
CNY 2% 5%
Other 5% 4%
1 Continuing Business, excluding the Specialty Ingredients business that was reclassified to discontinued operations

2 Includes cost of Goods Sold, CORE SAR and CORE OIE

Hedging policy / foreign exchange management policy and process:

  • Focus on natural hedge incl. financing mix
  • Contract hedging
  • Centralized 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, page 139 of the Financial Report in Lonza’s Annual Report 2020). 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 %
 20201  2019
  CHF US UK CHF US UK
Discount rate 0.15 2.33 1.35 0.29 3.18 2.08
Future salary increases 1.00 0.00 n.a. 1.00 0.00 3.22
Future pension increases n.a. 0.00 0.00 n.a. 0.00 2.33
1 The 2020 assumptions are only related to pension plans of continuing operations

 

Additional information on Employee Benefit Liabilities are disclosed in Note 24, page 138 of the Financial Report in Lonza’s Annual Report 2020.

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 R&D costs for the total group amounted to CHF 185 million, of which CHF 160 million in continuing business (2019: total Group: CHF 188 million, continuing business CHF 141 million) and represent the full range of R&D activity. However, the consolidated income statement discloses lower levels of R&D costs, 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 registered shares, with a par value of CHF 1 each, are listed on the SIX Swiss Exchange (SIX), with secondary listing on the SGX Singapore Exchange. In Switzerland, they have been included in the Swiss Market Index (SMI) since 3 May 2017.

What is the stock symbol?

Stock Exchange Listing / Trading:

SIX Swiss Exchange

SGX Singapore Exchange

Common Stock Symbols

Bloomber LONN SW

Reuters LONN.S

Six Swiss Exchange LONN

SGX Singapore Exchange O6Z

Security Number:

Valor 001384101

ISIN CH0013841017

Lonza's share register contact

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?

As of 31 December 2020, the share capital on 31 December 2020 comprised 74,468,752 registered shares with a par value of CHF 1each, amounting to CHF 74,468,752.

Registered Shares
2020 2019
Number of shares issued
74,468,752 74,468,752
Number of shares ranking for dividend
74,283,072 74,288,802
Par value per share CHF 1 1
Profit for the period (equity holders of the parent) million CHF 869 645
Diluted profit for the period million CHF 869 645
Ratios per Security
2020 2019
Weighted average number of shares
74,403,508 74,109,308
Diluted weighted average number of shares
74,709,049 74,564,802
Basic earnings per share1 CHF 11.68 8.70
Diluted earnings per share1 CHF 11.63 8.65

1 Total Group including discontinued operations

What is Lonza doing to protect the environment?

We are committed to sustainable development in all its broad and diverse meanings. We aim to create value for society by delivering innovative, science-based solutions for our customers. We strive to reduce our use of natural resources such as water and energy, our carbon footprint and the generation of waste. In our operations, we engage and empower our employees and teams to work towards our Vision Zero – meaning zero workplace injuries, zero manufacturing process incidents, zero emissions beyond regulatory limits and zero transportation incidents. In the workplace, we aim to protect our colleagues as well, by identifying and eliminating potential hazards.

For more information, please visit our Sustainability Report 2020.

What is Lonza's 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 SIX Swiss Exchange. Learn more about Lonza's position on Corporate Governance.