News Release

Basel, Switzerland, 19 December 2018 – Lonza today is publishing unaudited Full-Year 2017 information excluding the Water Care business and taking into consideration additional reporting-related items to enable comparison and inform capital market participants about the upcoming reporting changes prior to our Full-Year 2018 results publication.

Impact from Announced Divestment of Water Care Business

On 1 November 2018, Lonza announced that it entered into a definitive agreement with Platinum Equity to acquire Lonza's Water Care business and operations. The agreement is expected to close in the first quarter of 2019, subject to customary closing conditions. Consequently, Water Care will be classified as discontinued operations and as assets held for sale in accordance with IFRS 5, “Non-Current Assets Held for Sale and Discontinued Operations,” in the Full-Year 2018 results, expected to be published on 30 January 2019.

The planned divestment of the Water Care business and its classification as discontinued operations has an impact on Lonza Group and its Specialty Ingredients segment only. The Pharma & Biotech segment is not affected.

Impact from IFRS 15 Adoption on 2017 Comparable Information

On 1 January 2018, the new, comprehensive revenue recognition standard, IFRS 15, "Revenue from Contracts with Customers," took effect. Lonza has applied the full retrospective methodology in adopting IFRS 15 to enhance comparability.

As a result, Lonza is publishing restated financial results for its Full-Year 2017 results in accordance with IFRS 15. The IFRS 15 adoption only had an impact on Lonza's Pharma & Biotech segment. Further information has previously been provided in the online Lonza Annual Report 2017 and in the Half-Year Results 2018 report publication.

Introduction of Lonza Specialty Ingredients Divisional Reporting

On 1 January 2018, the Specialty Ingredients segment began operating in three distinct businesses: a Consumer Health division, a Consumer & Resources Protection division and a Water Care business unit. As of 1 November 2018, with the signing of the strategic agreement to divest the Water Care business to Platinum Equity, Water Care is being reported as discontinued operations for all periods presented.

With the publication of the Half-Year 2018 results, Lonza provided sales and CORE EBITDA financial key performance indicators (KPI) for its new reporting structure in Specialty Ingredients. Historical data for the full-year 2017 is now being disclosed in order to enable comparative analyses. Further information has previously been provided in the Half-Year Results 2018 report.

Impact from Capsugel Acquisiton on Lonza Comparable Reporting for Full-Year 2017

Lonza provides pro-forma Full-Year 2017 results (reported Lonza Full-Year 2017 financial results including Capsugel 2017 financial results from 1 January 2017) for Lonza's KPIs of Sales, CORE EBITDA and CORE EBIT. These pro-forma KPIs reflect the acquisition of Capsugel as if it would have occurred on 1 January 2017, although the effective closing was on 5 July 2017. During 2018 Capsugel has been fully integrated into Lonza's two operating segments, Pharma & Biotech and Specialty Ingredients (Consumer Health division). Further information has previously been provided in the Half-Year Results 2018 report.

The following tables summarize the changes mentioned above and provide comparable information for Full-Year 2017 reporting.

Table 1: Impact from IFRS 15 Adoption and Estimated Impact from Classification of Water Care as Discontinued Operations on 2017 Comparable Information for Continuing Operations

Table 2: Introduction of Lonza Specialty Ingredients Divisional Reporting for 2017 Continuing Operations (Excluding Water Care)*

*Differences between consolidated Lonza Group and total segments (Lonza Pharma & Biotech and Lonza Specialty Ingredients) result from corporate functions and eliminations.

Table 3: Impact from Capsugel Acquisiton on 2017 Comparable Information for Continuing Operations (Pro-Forma Results)*

*Differences between consolidated Lonza Group and total segments (Lonza Pharma & Biotech and Lonza Specialty Ingredients) result from corporate functions and eliminations.

The Full-Year 2018 results will be published in English only.