News Release

• Strong sales growth in reported currency of 4.5% (a growth of 5.7% in constant exchange rates) resulted in sales of CHF 3.80 billion.

• Double-digit CORE EBIT growth of 10.3% in reported currency (+12.0% in constant exchange rates) was supported by both the Specialty Ingredients and Pharma&Biotech segments.

• CORE EBITDA margin improved from 20.4% in 2014 to 20.9% in 2015.

• CORE RONOA increased from 14.3% in 2014 to 16.4% in 2015.

• Strong operational free cash flow of CHF 667 million led to a net debt reduction in 2015 of
CHF 351 million.

• Lonza's Board of Directors is proposing a stable dividend of CHF 2.50 per share for 2015.

• The Board is also proposing to the AGM, to be held on 22 April 2016, the re-election of all its members and additionally the election of Christoph Mäder to the Board.

Guidance Cycle 2012-2015:

With the full-year 2015 results, Lonza concluded its guidance cycle of 2012-2015. In 2012 Lonza started its transformational journey and announced a set of key performance indicators (KPIs). The company successfully delivered on these KPIs, as reflected in the financial results, including the following:

Basel, Switzerland, 27 January 2016 – Lonza today reported that 2015 was a successful year, on a financial and an operational level, with both segments – Specialty Ingredients and Pharma&Biotech – contributing to the strong results. Strong sales growth over 2014 in reported currency of 4.5% (a growth of 5.7% in constant exchange rates, CER) resulted in sales of CHF 3.80 billion.Each segment had double-digit CORE EBIT growth in CER, which led to an overall growth of 10.3% in reported currency (+12.0% in CER) to CHF 524 million.

These improved 2015 financial results in nearly all disciplines were the consequence of Lonza's measurable progress in the company's ongoing transformation, which has led to a continued path of stabilization. Healthy market demand, combined with better operational performance, bolstered the strong results.

In addition, Lonza continued to de-risk the portfolio, deleverage the company, increase return on capital and reduce volatility even further in 2015. Macro-economic uncertainties, geo-political unrest and variable raw material prices were balanced in 2015. In addition, foreign-exchange effects were minimized through targeted counter-measures and through Lonza's natural hedge.

“For the fourth year in a row, we have delivered on our promise to move the company to the next level,” said Richard Ridinger, CEO of Lonza. “Our significantly improved full-year results demonstrate that we're making sustained progress in operational and financial execution. Thanks to the efforts of our employees and other stakeholders, we are continuing our transformation into a fully customer-oriented organization.”

Specialty Ingredients Segment – Enhanced portfolio management counterbalances currency effects

The Specialty Ingredients segment overall had a solid performance throughout the year, with sales growth of 2.5% in CER, driven by good market demand. The sales figures were also impacted by low oil prices. CORE EBIT had a solid increase, based on better product mix in the portfolio and value-chain improvements. The firm demand resulted in high capacity utilization in most technologies. Innovative solutions provided to customers were highly appreciated, and new product launches gained traction.

The Agro Ingredients and Wood Protection businesses had the strongest profit growth compared with the previous year. Consumer Care performed as budgeted based on solid demand. Benefiting from the good development of the specialty portfolio was the Industrial Solutions business, which delivered strong results. Effective 1 January 2016, Industrial Solutions was renamed Coatings and Composites and was expanded to include Wood Protection. Water Treatment grew on the top and the bottom line.

Since the lifting of the EUR/CHF ceiling by the Swiss National Bank (SNB) in mid-January 2015, the foreign-exchange development has influenced the majority of the businesses, especially the Swiss-based Agro Ingredients and industrial products businesses. However, additional sales, price increases and productivity improvements compensated for this impact in 2015.

Pharma&Biotech Segment – Positive momentum due to favorable market conditions especially in biologics

The Pharma&Biotech segment increased sales by 10.5% in CER. CORE EBIT grew by double digits. This strongly improved performance in 2015 was mainly due to solid demand in the mammalian businesses and significantly improved operational performance. The made-to-stock Bioscience Solutions business delivered strong growth in both sales and profits.

A firm market demand for commercial and products in clinical trials was observed throughout the year. The outsourcing and multi-sourcing trends continued to be strong. New contracts were signed in 2015 on the back of positive developments of various product candidates' moving forward in clinical trials. Long-term contracts were also signed for new technologies, driven by a high level of market activities.

In 2015 the market continued to acknowledge Lonza's high quality standards, reputation and consistent adaptations of the facilities to meet permanently increasing requirements from regulatory authorities. All 21 regulatory audits and 143 customer inspections were successfully completed.

Financial Summary

• Revenues grew by 5.7% in CER (+4.5% to CHF 3.80 million in reported currency).

• CORE EBITDA margin was 20.9% compared with 20.4% in 2014.

• CORE EBIT grew by 12.0% in CER to CHF 532 million (+10.3% in reported currency to
CHF 524 million).

• Main differences between CORE and reported EBIT are impairments at the Kourim (CZ) and Walkersville, MD (USA) plants.

• CORE RONOA at 16.4% compared favorably with 14.3% in 2014. The 2015 CORE RONOA result is one year ahead of the 2016 guidance of 16%.

• Profit for the period increased by 16.9 % to CHF 277 million.

• Despite higher capital expenditure of CHF 264 million (CHF 180 million in 2014), operational free cash flow improved significantly by 40.1% to CHF 667 million.

• In August Lonza announced the pricing of its dual tranche CHF 325 million (CHF 150 million and CHF 175 million) straight bonds. The bonds have a maturity of five and eight years respectively with coupons of 0.625% and 1.250%.

• Debt reduction is on track, with net debt reduced significantly in 2015 by CHF 351 million to CHF 1.66 billion, leading to a net debt/EBITDA ratio of 2.09x and a debt/equity ratio of 78%.

• Lonza's Board of Directors is proposing a stable dividend of CHF 2.50 per share for 2015.

Changes to the Board of Directors

The Board of Directors is proposing to the AGM, to be held on 22 April 2016, the re-election of all its members and additionally the election of Christoph Mäder to the Board. The candidate has broad experience in mergers & acquisitions, capital market transactions, industry regulation and governance. He currently serves at Syngenta as Head Legal & Taxes and Company Secretary and as Member of the Executive Committee. He sits on the Board of Directors of the industry association scienceindustries, which he formerly chaired, is a Vice Chairman of economiesuisse and serves on the Industry Advisory Council to the Organisation for Economic Co-operation and Development (OECD). The Board is also proposing to re-elect Rolf Soiron as its Chairman. The search for his successor has been initiated.

Outlook

The transformation of Lonza towards a more customer-focused and market-driven organization made sound progress in 2015 and is still ongoing. Lonza will continue to work on a balanced portfolio and to proactively seek to adjust business models to the current market and economic situations.

Based on the present macro-economic environment and current visibility, as well as the strongly improved results of 2015, Lonza is re-confirming the 2018 guidance of:

• CORE EBITDA approaching CHF 1 billion in 2018.

• CORE RONOA of 20% in 2018.

• Sales growth of low to mid-single digits on average per year until 2018.

In 2016 Lonza is expected to grow sales in line with the 2018 guidance and targets a CORE EBIT growth of above 5%, based on the same conditions.

The strong demand particularly in Pharma&Biotech has resulted in a number of growth projects. That is why the company expects the 2016 capital expenditure to be above the 2015 levels.

A Capital Markets Day for investors and analysts will be held in Portsmouth, NH (USA) on
27 October 2016.

Further details about the Full-Year Report 2015 can be found on https://www.lonza.com/about-lonza/investor-relations/investor-information.aspx.