Lonza Group Ag · SIX:LONN
Lonza — J.P. Morgan Healthcare Conference 2025
26 slides from Lonza's conference presentation, Jan 14, 2025
Slide 1: One Lonza
Slide 2: Disclaimer
Disclaimer LONZa Lonza Group Ltd has its headquarters in Basel, Switzerland, and is listed on the SIX Swiss Exchange. It has a secondary listing on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Lonza Group Ltd is not subject to the SGX-ST’s continuing listing requirements but remains
Slide 3: Today will be about five key messages
Today will be about five key messages LOnNZa i) One Lonza is a place of unique opportunity '@) We have a clear strategy — and a clear plan for value creation '@) We have a unique set of strengths — and still can do better @ We don't waste time taking decisions 'G) We expect to deliver strong value c
Slide 4: My priorities as the new CEO: 3-step plan
My priorities as the new CEO: Lonza is a place of unique opportunity - our 3-step plan to make it fully unfold “Establish a strong vision of One Lonza” * Create clarity on ambition and aim high - new Vision * Create a unified culture around new Purpose and Values “Assemble the Lonza Engine” Identify
Slide 5: Our Vision
LONZa Our Vision We are the pioneer and world leader in the CDMO industry, setting the pace with cutting-edge science, smart pcchpelogy and lean manufacturing
Slide 6: The new vision sets the bar and provides strategic direction
The new vision sets the bar and provides strategic direction: What it takes to LOnNZa create outstanding long-term value for the benefit of all “pioneer... setting the pace” “world leader in the CDMO industry” “cutting-edge science, smart technology and lean manufacturing” Taree de ee el oe pe gyri
Slide 7: Sustainably high market growth and uniquely attractive characteristics
Sustainably high market growth and uniquely attractive characteristics LONZa Dynamic underlying market... ... With unique characteristics Pharma market Molecules in development growth, 2024-2029! O Non-cyclical underlying market 9% growth 4% Pl || * Growth captured through investments +) SM Bio caG
Slide 8: Lonza is uniquely positioned: broadest set of modalities and technologies
Lonza is uniquely positioned: Broadest set of modalities, technologies and LOnNZa significant scale in the largest global network * Scale is critical to a Top 15 CDMO players by latest FY sales (bn CHF) CDMO’s ability to pool and diversify risks efficiently * Two layers of risk diversification — poo
Slide 9: Introducing the unique Lonza Engine: The building blocks
Introducing the unique Lonza Engine: The building blocks LOnNZa Leading scientific, techno- Unparalleled customer partnerships logical, digital ecosystem Based on trust, capabilities, scale, Cutting-edge in chemistry, delivery performance biology, process engineering End-to-end execution excellence
Slide 10: Strong talent base and hard-to-copy culture fuel competitive advantage
Strong talent base and hard-to-copy culture fuel competitive advantage =i Our scientific talent... & 2024 employee survey results fo) .. of our ~60 % employees of employees with think scientific background!2 here at Lonza* 2024 customer survey® results .. of our customers value the 1. As of 2024. 2.
Slide 11: Unmatched track record of enabling launches
Unmatched track record of enabling launches - with rich pipeline for LOnNZa future growth —= Scientific & technological ecosystem Additional 34 launches Stay Cele Number of molecules NME launches (2019-2024)! in development at Lonza? 30 16 4 5 5 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 Lonza 30 7 7 9 10
Slide 12: Broad customer base with 50:50 revenue split between Big Pharma & Biotech
Broad customer base with 50:50 revenue split between Big Pharma & Biotech LOnNZa —=: Customers Preferred partner of Big Pharma... ... and Small Biotechs of top 100 Big Pharma! work with Lonza 95% CDMO Biotech? customers of signed CDMO Biotech? business 2023 is retention? average length of relationsh
Slide 13: Unique global network and track record of successful capacity expansions
Unique global network and track record of successful capacity expansions LOnNZa —=: Execution Global network & expansion capabilities across 3 continents . . Unique global network with strong 3 growth projects 1 growth project presence in key regions Latest addition with largest US-based mammalian c
Slide 14: Proven capabilities in integrating people, technologies and assets
Proven capabilities in integrating people, technologies and assets with positive long-term impact —= Investment & integration People Example: Visp Technologies Example: Synaffix Assets Example: Vacaville 1. Excl. dedicated Roche demand. # of employees @ 5k 2k be 2020 2024 Synaffix sales @& LONZa Onb
Slide 15: Tune the Lonza Engine: Four key initiatives
Tune the Lonza Engine: Four key initiatives to address improvement opportunities LONZd RESHAPE ELEVATE FOCUS EXPAND Roll out simplified Increase excellence in Exit CHI' at the appropriate Double down on strategic operating model best constructing and operating time and in the best priorities and opp
Slide 16: RESHAPE: lean, simplified operating model
1) RESHAPE: One Lonza will be propelled by a lean, simplified LOnNZa operating model - announcement today, implementation in Q2 2025 Key objectives * Simplified, scalable, and future-proof organization , 3 autonomous Divisions' with 9 ... Sintegrated synergistic * Enhancing customer underlying Busin
Slide 17: RESHAPE: Three CDMO Business Platforms will host eight technology platforms
1) RESHAPE: Three CDMO Business Platforms will host eight technology LOnNZa platforms Integrated Biologics’ Advanced Synthesis Specialized Modalities Advancing best-in-class integrated Combining leading hybrid solutions Pioneering and scaling cutting-edge offerings from chemistry and biology technol
Slide 18: ELEVATE: Targeted efforts to elevate execution capabilities
oO ELEVATE: Targeted efforts to elevate Lonza’s execution capabilities started Lonza Excellence in constructing our assets Excellence in operating our assets 1. Lonza Business Management System. Internalize critical engineering capabilities Refine management process for growth projects Balance user
Slide 19: FOCUS: CHI is #1 in its markets but Lonza not best owner anymore
FOCUS: CHI is #1 in its markets with strong margins - but Lonza not LOnNZa best owner anymore CHI is a highly attractive business... ... but Lonza no longer best owner Sales! (in CHF) mainly driven by Hard Empty Capsules and supported by remaining portfolio Different business model CHI's product bus
Slide 20: EXPAND: Double down on strategic priorities and opportunities
@ EXPAND: Double down on strategic priorities and opportunities LONZza Assessment of new ities agai eas a =e) opportunities against Biologics Synthesis Lonza Engine Expand in capacity- Diversify footprint & Extend tech offering Secure long-term constrained market double down on & create larger growt
Slide 21: EXPAND: Outgrow the Pharma market by investing in highest growth segments
EXPAND: Outgrow the Pharma market by investing in large and LOnNZa highest growth segments along modalities Pharma revenue CAGR 2024-2029 by segment >15% 7-18% Lonza continuously invests in next- wave techs before 7% they become relative / absolute growers Source: Lonza analysis, Evaluate Pharma. No
Slide 22: The Lonza Engine drives growth-led value creation
The Lonza Engine drives growth-led value creation LOnNZa Organic and inorganic investments Organic growth ahead of market * Impartial to CapEx and bolt-on M&A + Low teens organic growth', + Alignment with Lonza Engine Investment Strong +2-3% ahead of market in growth top-line * Growth projects with
Slide 23: CDMO Organic Growth Model
The Lonza Engine together with disciplined investments in growth LOnNZa will drive Lonza’s CDMO Organic Growth Model eae CDMO' organic? growth +2-3% Mid-to-high teens CapEx in % of sales: ahead of market at 8-10% . . . . * Mid-to-high single-digit % of sales investments in maintenance, infra- struct
Slide 24: Group Outlook 2024 confirmed - strong profitable growth expected in 2025
Group Outlook 2024 confirmed - strong profitable growth expected for LOnNZa CDMO business in 2025 FY 2024 Outlook confirmed at flat CER' sales growth and a CORE EBITDA Group Outlook margin in the high twenties (27-29%): 2024 * Higher-than-planned performance of CDMO? business offsets lower-than- pla
Slide 25: One Lonza is a place of unique opportunity
One Lonza is a place of unique opportunity: The Lonza Engine will deliver LOnNZa outstanding value creation for the benefit of shareholders and all stakeholders _ () One Lonza is a place of unique opportunity New Vision of One Lonza () We have a clear strategy for value creation Lonza Engine and One
Slide 26: LONZG
LONZG