Alternative Performance Measures

Lonza uses Alternative Performance Measure (APMs) to assess the financial and operational performance at a divisional and group level. These supplementary financial measures should not be viewed in isolation or as alternatives to Lonza’s consolidated financial position and financial results, which are reported in accordance with IFRS. Instead, our APMs are intended to provide a complementary perspective on Lonza’s performance by isolating distorting effects like exchange rate fluctuations or one-time items.

For more detailed information on the applied performance, liquidity and capital measures, refer to Lonza’s 2021 Alternative Performance Measures Report.

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

Lonza's Board of Directors is proposing an unchanged dividend for shareholders of CHF 3.00 per share for 2021. The proposal represents a pay-out of 7.5%1 of 2021 reported net profit of Lonza Group. Subject to approval at the upcoming Annual General Meeting (AGM) on 5 May 2022, 50% of the dividend of CHF 3.00 per share will be paid out of the capital contribution reserve and will therefore be free from Swiss withholding tax.

Pay-out ratio of 7.5% based on the profit for the period of Lonza Group consolidated (incl. discontinued operations). The pay-out ratio based on the profit for the period of continuing operations would amount to 32.9%

Dividend payment history

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Currency exposure1

The 2021 currency exposure reflects as follows:


Sales Cost2
USD 41% 38%
CHF 28% 26%
EUR 14% 16%
GBP 10% 6%
CNY 2% 5%
Other 4% 9%
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 and Great Britain (these plans are described in Note 24, page 124 of the Financial Report in Lonza’s Annual Report 2021). 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 %
 2021  20201
  CHF UK CHF UK
Discount rate 0.35 1.95 0.15 1.35
Future salary increases 1.25 n.a. 1.00 n.a
Future pension increases n.a. 3.40 n.a. 3.10
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 124 of the Financial Report in Lonza’s Annual Report 2021.

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 continuing operations amounted to CHF 181 million (2020: CHF 160 million) and represent the full range of R&D activity. However, the consolidated income statement discloses lower levels of research & development 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?

Shares of Lonza Group Ltd are listed on the SIX Swiss Exchange and Swiss Market Index (SMI). We also maintain a secondary listing on the SGX Singapore Exchange.

What is the stock symbol?

Stock Exchange Listing / Trading:

SIX Swiss Exchange

SGX Singapore Exchange

Common Stock Symbols

Bloomberg 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?

The share capital on 31 December 2021 comprised 74,468,752 registered shares with a par value of CHF 1 each, amounting to CHF 74,468,752.

Registered Shares
2021 2020
Number of shares issued
74,468,752 74,468,752
Number of shares ranking for dividend
74,189,129 74,283,072
Par value per share CHF 1 1
Profit for the period (equity holders of the parent)1 million CHF 2,944 869
Ratios per Security
2021 2020
Weighted average number of shares
74,255,891 74,403,508
Diluted weighted average number of shares
74,490,106 74,709,049
Basic earnings per share1 CHF 39.65 11.68
Diluted earnings per share1 CHF 39.52 11.63

1 Total Group including discontinued operations

What is Lonza doing to protect the environment?

We continually strive to reduce our impact on natural systems and the environment, conserve energy and resources, assure safety, health and wellbeing of our employees and help to improve the quality of life in the communities in which we operate. The aim of our “Vision Zero” initiative is to reduce workplace accidents and injuries, environmental incidents and manufacturing process incidents. Through these and other safety, quality and human resource initiatives, we strive to make meaningful improvements. Programs are developed at site level, in alignment with company priorities and goals. We build multi-year roadmaps to enable continuous improvement, follow-up and reflect the type and impact of the operations over a number of years. In addition, with the commitment for the Sustainable Development Goals, more specifically on Climate Action, Water and Infrastructure we have introduced new or higher ambitions related to our environmental performance.

For more information, please visit our Sustainability Report 2021.

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.