Lonza Group Ag · SIX:LONN
Lonza — Investor Day (October 2023)
134 slides from Lonza's investor day presentation, Oct 17, 2023
Slide 1: Lonza Capital Markets Day
Lonza Capital Markets Day 17 October 2023
Slide 2: Agenda
Agenda 09:30 - 09:40 09:40 - 10:10 10:10 - 10:25 10:25 - 11:05 11:05 - 11:20 11:20 - 11:40 11:40 - 12:00 12:00 - 12:20 12:20 - 12:25 12:25 - 13:00 13:00 - 13:30 13:30 - 13:40 13:40 - 14:00 14:00 - 16:00 16:00 - 16:15 16:15 - 17:00 Albert M. Baehny Philippe Deecke Maria Soler Nunez Jean-Christophe Hy
Slide 3: Introduction
Introduction Albert M. Baehny Leading in the Resilient and Growing CDMO Market
Slide 4: We Have Heard Investor Feedback and Will Address Key Themes Today
We Have Heard Investor Feedback and Will Address Key Themes Today . * Global capacity expansion across the industry Capacity overbuild concerns * Continued strong demand in biopharma suggests low risk of capacity overbuild for best-in- class industry partners * Unusual levels of market volatility ar
Slide 5: We Have Heard Investor Feedback and Will Address Key Themes Today
We Have Heard Investor Feedback and Will Address Key Themes Today Cell & Gene . + Fast growing business affected by the current Biotech funding constraints Therapy business . . . . rn : margins * Slowly improving margin business capturing significant long-term commercial opportunity * Capital alloca
Slide 6: Lonza is Uniquely Positioned to Capture Growth in CDMO Market
Lonza is Uniquely Positioned to Capture Growth in CDMO Market Global leader in the highly attractive CDMO market Business geared for growth, strongly backed by technology, innovation and organic investments Broad and sophisticated portfolio of crucial modalities to bring new drugs quickly and secure
Slide 7: Considerations on Lonza's Growth Projects
Considerations on Lonza’s Growth Projects CAPEX allocation Around 70 - 80% of CAPEX to support future growth Clear growth project thresholds IRR 15% ROIC around 30% at peak sales A shared risk model on long-term projects Multi-purpose assets: long-term supply agreements (3 to 7 years) with minimum c
Slide 8: The CDMO Market Remains Attractive and Robust
The CDMO Market Remains Attractive and Robust Resilient pharma end-markets addressing ageing populations and rising chronic disease Innovation in technologies and targets requiring novel modalities and medicines Increased reliance on strategic partners across large pharma and small biotech Shift to
Slide 9: Our ESG Strategy - Aligned with the UN Sustainable Development Goals
Our ESG Strategy - Aligned with the UN Sustainable Development Goals GOOD HEALTH ‘AND WELL-BEING w/e To improve the lives of patients by supporting and enabling our customers on the path to commercialization To provide safe workplaces, caring for employees’ well being and fostering their involvement
Slide 10: Our Strategic Priorities
Our Strategic Priorities Innovation Anticipating technological trends Building IP and protected capabilities Extending differentiated positioning Continuous transformation through data management and Al Collaboration Early partnership with our customers Joint mission in creating customized solutions
Slide 11: The Lonza Executive Management Team Delivering our Strategy
The Lonza Executive Management Team Delivering our Strategy din cai A Albert M. Baehny Philippe Deecke Maria Soler Nunez JC Hyvert Gordon Bates Daniel Palmacci Christian Seufert Chairman CFO Head, President, President, President, President, and CEO aii. Group Operations Biologics Small Molecules Cel
Slide 12: Financial Update
Financial Update Philippe Deecke Attractive Business Model and Growth Investments Driving Financial Performance
Slide 13: Attractive Business Model and Growth Investments Driving Financial Performance
Attractive Business Model and Growth Investments Driving Financial Performance Attractive and diverse growth project portfolio to drive future growth Strong historical New 2024 - 2028 performance Mid-Term Guidance Compelling capital allocation strategy delivering shareholder value
Slide 14: Attractive Business Delivering Strong KPIs and Financials
Attractive Business Delivering Strong KPls and Financials 2022 Figures >1,025 ~800 21 42 ge Ongoing Molecules CDMO customers Ghamitn erases 6.2bn +16% 32% F Sales CAGR 3 A Sales in CHF 2019 - 2022 in CER CORE EBITDA margin 1 Large molecules including mammalian, microbial bioconjugates and cell and g
Slide 15: Strong Topline Growth in Recent Years
Strong Topline Growth in Recent Years Sales 2019 - 2022 in bn CHF Strong underlying business Ex-COVID low- to mid-teens growth All divisions grew above market New assets drive CDMO growth 2019 2020 2021 2022 +1%pt core EBITDA margin despite ramp-up dilution and inflation @ CORE EBITDA Margin ‘Sales
Slide 16: Attractive Business Model and Growth Investments Driving Financial Performance
Attractive Business Model and Growth Investments Driving Financial Performance Attractive and diverse growth project portfolio to drive future growth Strong historical New 2024 - 2028 performance Mid-Term Guidance Compelling capital allocation strategy delivering shareholder value
Slide 17: Group Mid-Term Guidance 2024 - 2028
Group Mid-Term Guidance 2024 - 2028 32-34% Sales growth driven by new Biologics assets 11-13% Sales CAGR in CER (2024 - 2028) CORE EBITDA margin in 2028 Margin improvement from growth projects, Cell & Gene maturing, operational excellence CAPEX expected to decrease to mid-to-high teens as % of sales
Slide 18: Ahead of Market Sales Growth and Margin Improvements Across Divisions
Ahead of Market Sales Growth and Margin Improvements Across Divisions Sales CAGR Division CORE EBITDA margin Cell & Gene Mid-teens Capsules & Health Ingredients 2024 - 2028 (CER) 2024 - 2028 Biologics Mid-teens >35% Small Molecules Mid-to-high single-digit >30% >25% Low-to-mid single-digit >30% Lonz
Slide 19: Sales Growth Supported by Known Commercial Growth Assets
Sales Growth Supported by Known Commercial Growth Assets Sales Trajectory 2024 - 2028 in CHF — - BY Biologics growth driven by new assets, —— many of which are in ramp-up stage — | >60% of next three years sales secured? B —_ in Biologics and Small Molecules CGT portfolio maturing to more gy ga comm
Slide 20: Growth Projects and Productivity Drive Margin Improvement
Growth Projects and Productivity Drive Margin Improvement CORE EBITDA margin trajectory 2024 - 2028 in % Lower dilution from growth projects 32-34% 7) a Pred phase in ramp-up xi 2) Cell & Gene margins moving towards Group margin by 2028 3) Growth and new technology deployment in CHI 4) Continued pro
Slide 21: Attractive Business Model and Growth Investments Driving Financial Performance
Attractive Business Model and Growth Investments Driving Financial Performance Attractive and diverse growth Strong historical New 2024 - 2028 performance Midsreanicuidence: project portfolio to drive future growth Compelling capital allocation strategy delivering shareholder value
Slide 22: Large and Stable Base Complemented by Dynamic Growth Portfolio
Large and Stable Base Complemented by Dynamic Growth Portfolio Sales: Base vs. Growth Business Base Business Growth in CHF i Base Ramped up assets, product businesses! Growth Large assets in ramp-up ne 2024 2028 ‘CHI and Bioscience Stable, growing and resilient business High asset utilization High r
Slide 23: Growth Project Portfolio at a Glance Large Ongoing Growth Projects
Growth Project Portfolio at a Glance 21 Large Ongoing Growth Projects CAPEX above CHF 50m Total Projects CAPEX split of the 21 projects 10% 9 CHF 1.8bn 90% Modalities Cumulative celles ey tae 2018 - 2023E assets 95% 15% 30% invested in EU / US IRR threshold RCE tiareetnelt| (at peak) mlnconstruction
Slide 24: Broad Growth Project Portfolio Returning More Than 2x Cost of Capital
Broad Growth Project Portfolio Returning More Than 2x Cost of Capital Number of Growth Projects clustered by IRR (%)! 5 8 Growth project portfolio delivering high >30% return on capital Majority of our portfolio returns above IRR threshold of 15% 15-30% 9 , . _ A few projects, mainly clinical stage,
Slide 25: Investment Program Securing Leadership Role in Industry
Investment Program Securing Leadership Role in Industry Wave 1 Wave 2 Wave 3 7 projects 11 projects 3 projects? 2021-2023 Biologics ADC ADC CGT Biologics Drug Product Biologics Drug Product China Large Scale Mammalian Cell & Gene HPAPI mRNA Small Molecules 1Former Specialty Ingredients business dive
Slide 26: Investment Program Securing Leadership Role in Industry
Investment Program Securing Leadership Role in Industry Wave 1 Wave 2 Wave 3 7 projects 11 projects 3 projects? 2021 - 2023 Biologics ADC ADC CGT Biologics Drug Product Biologics Drug Product [seeienerrappntSTaES China Large Scale Mammalian Cell & Gene HPAPI mRNA Small Molecules CAPEX / Sales High t
Slide 27: Growth Assets Driving Future Growth and Profits
Growth Assets Driving Future Growth and Profits Illustrative? in CHF Growth project CAPEX' Growth project sales! Growth project CORE EBITDA! 18 19 20 21 22 23 24 25 26 27 28 210 22 23 24 25 26 27 28 210° 2200 «230 (240 2526 27 8B MWave1 Ml Wave 2 @ Number of new projects ramp up MWwave3 — Next Wave
Slide 28: Diverse Projects with High Visibility and Focus on Value Creation (1/2)
Diverse Projects with High Visibility and Focus on Value Creation (1/2) Illustrative Project Dynamics Biologics Large-Scale Commercial Construction: 4 years CAPEX, Sales and CORE ROIC >30% anna EBITDA profile in CHF Dilutive ramp-up in year 3 and 4 IRR >20% Peak sales in year 7 De-risked through anc
Slide 29: Diverse Projects with High Visibility and Focus on Value Creation (2/2)
Diverse Projects with High Visibility and Focus on Value Creation (2/2) Illustrative Project Dynamics Biologics Commercial Small Scale (2k) CAPEX, Sales and CORE ROIC >30% Faster construction and EBITDA profile in CHF ramp-up due to expansion of existing asset IRR >20% Peak sales in year 5 ~ . Mixed
Slide 30: Attractive Business Model and Growth Investments Driving Financial Performance
Attractive Business Model and Growth Investments Driving Financial Performance Attractive and diverse growth project portfolio to drive future growth Strong historical New 2024 - 2028 performance Mid-Term Guidance Compelling capital allocatio’ ategy delivering shareholder value
Slide 31: Strong Business Fundamentals to Drive Increase in Free Cash Flow (FCF)
Strong Business Fundamentals to Drive Increase in Free Cash Flow (FCF) Strong FCF Generation by 2028 Strong business Divisions to growth outgrow market FY 2028 % of sales >25% c.10% c.15% Conti - Productivity and ee ontinuous margin 4 A growth projects ; progression A A drive margin —— a FCF before
Slide 32: Prioritizing Organic Growth, Shareholder Return and Bolt-On M&A
Prioritizing Organic Growth, Shareholder Return and Bolt-On M&A Organic Investments Strong FCF Generation Focus on capital ! allocation priorities 12 Returning Capital to Shareholders Healthy Balance (3 Sheet H | M&A Investments De-risked, attractive opportunities based on market needs Progressive d
Slide 33: Q3 Financial Update
Q3 Financial Update Lonzq Lonza Capital Markets Day |<
Slide 34: Q3 Update: Confirming Business Dynamics Shared in H1 2023
Q3 Update: Confirming Business Dynamics Shared in H1 2023 CDMO business dynamics continue to be strong, with high demand for commercial capacities Biologics and Small Molecules contract wins in commercial Drug Product and Bioconjugation Biotech funding stabilizing, no pick-up yet for early-stage ser
Slide 35: Q3 Update: Two Customer Events Impact 2023 and 2024 Performance
Q3 Update: Two Customer Events Impact 2023 and 2024 Performance Moderna COVID-19 Contract Kodiak Sciences Cancellation of long-term agreement Customer faced negative read-out of Contract termination triggers accelerated KSI-301 program in Phase 3! recognition: additional compensation in 2023 and los
Slide 36: Customer Events Negatively Impacting 2024
Customer Events Negatively Impacting 2024 ' Moderna termination agreement Moderna base business Sales growth % Upper end of ~ Flat YoY in CER guided range CORE EBITDA Upper end of High 20s elo margin guided range qe ws cre | Underlying growth: high saa > r | r | Ti Sales in CHF Ei 2023 Outlook Moder
Slide 37: Concluding Remarks
Concluding Remarks Strong financial performance in recent years Attractive portfolio of 21 ongoing growth projects 2023 operationally on track, and positively impacted by customer events Compelling mid-term growth and profitability driven by divisional above- market growth, existing projects and foc
Slide 38: Growth Projects
Growth Projects Maria Soler Nunez Operational Excellence to Drive Performance and Growth
Slide 39: Strong Governance Model Enables Successful CAPEX Execution
Strong Governance Model Enables Successful CAPEX Execution Initiation Execution oe ao io Division / Customer Request Gates: -1 0} 1} a 3 4 5 1 1 i} 1 1 i} 1 1 i} 1 1 i} Gate -1: EC Gate 0: 1 ECGate1: 1 EC/BoD Gate 2: : Expectations and Validate Strategic | ConfirmBusiness | Approve ' Standard Execut
Slide 40: Project Execution is Highly Standardized and Closely Monitored
Project Execution is Highly Standardized and Closely Monitored Equipment procurement and asset construction Asset Commissioning, Qualification, Validation (CQV) Health Authority approval and ramp-up of operations Enabled by: — End-to-end project lead in division responsible for business case deliver
Slide 41: Bacthera JV
BactheraJV MC4 Complete in 2023 Sanofi JVBioAtrium &© = Manufacturing af Manufacturing j : ‘winter aR MC5 ; Complex MC2 : 2. Complex MC1 QC'Building 10 | QC' Building 1 Completed 2019 Completed 2022 : a esi ; Completed 2019 Completed 2022 Complete in 2023 +@C: Quality Control Lonza Capital Markets D
Slide 42: Visp Pre-Investment in Ibex Biopark, Manufacturing Complex Shells and Infrastructure
Visp Pre-Investment in Ibex® Biopark, Manufacturing Complex Shells and Infrastructure Substantially Completed Site Visp services A Compelling Value Proposition Security Canteen Training and apprentice program Fire Brigade Wastewater treatment plant Well-maintained Biopark infrastructure Legiitles ai
Slide 43: Pre-Investment Allows Agile Response to Customer Needs
Pre-Investment Allows Agile Response to Customer Needs Example: Project mammalian 6 x 20k in MC2 wing 1; 90% construction completed 2021 2022 2023 2024 2025 2026 2027 2028 1 1 1 1 1 1 1 1 > CAPEX shell MC2 ~5 - 10% of total CAPEX CAPEX Infra for MC2 [Dp i> ~5 - 10% of total CAPEX Note: Intensity of
Slide 44: MC Concept is Fully Flexible in Fit Out Size and Technology (1/2)
MC Concept is Fully Flexible in Fit Out Size and Technology (1/2) Large-scale JV with Sanofi Large-scale and small-scale assets Close and long-term customer relationships Mid-scale facility Dedicated customer suite An attractive platform for customers Lonza has a leading market offering Unique end-t
Slide 45: MC Concept is Fully Flexible in Fit Out Size and Technology (2/2)
MC Concept is Fully Flexible in Fit Out Size and Technology (2/2) COVID-19 vaccine High therapeutic and commercial potential Quick ramp-up for production, and fast redeployment lsolator technology - several customers Bacthera (joint venture with Chr-Hansen) New offering in Lonza portfolio Limited ca
Slide 46: Closing Remarks
Closing Remarks Strategic selection Structured gated of high-value oe approach Progress monitoring + . customer-relevant . . Learnings are carried CAPEX programs weceuieN allloxs cari Issue forward to new projects prog (design, construction, detection and mitigation Proj following strict returns cri
Slide 47: Biologics
Biologics Jean-Christophe Hyvert Delivering a Complete CDMO Offering Across the Lifecycle Lonza Capital Mark
Slide 48: Executive Summary
Executive Summary Attractive market Broad and tailored customer offering Offering tailored to market need Modalities and business units Biologics CDMO market remains highly attractive Growing at CAGR ~10% in USD and 7% in absolute molecules from 2023 and 2028 Expertise Flexibility Speed Integration
Slide 49: Biologics Strategy Overview
Biologics Strategy Overview Our ambition Strengthen our position as the Biologics CDMO partner of choice Our strategic priorities Full Lifecycle Management Acquire molecules early and manage them as they grow Licensing business unit drives early phase awareness and technology adoption End-to-End Off
Slide 50: Key Customer Wins in Q3 2023
Key Customer Wins in Q3 2023 Key Achievements Q3 Update on 2023 Significant long-term contract signings in Q3 First commercial Glue] pests Diversified Ibex® conjugati Fully int cer First commercial program in Launch of ae tentan ex® conjugation ully integrate i ug: ly 9g Ibex® ADC drug execution for
Slide 51: Lonza is Well Positioned in a Very Attractive Market
Lonza is Well Positioned in a Very Attractive Market Key Market Trends Biologics Market CDMO Outlook' 2023 - 2028 CAGR CDMO capacity is outpacing in-house Bn USD Small biotechs represent a higher proportion of (9-1%) the molecule pipeline, while commercial manufacturing represents most of the value
Slide 52: Continued Positive Indicators for Increased Outsourcing
Continued Positive Indicators for Increased Outsourcing Expected Market Share of Installed Mammalian Biologics Industry Pipeline (Number of Molecules) / Capacity CDMO vs. Pharma! 2019 - 2028 Share by Company Type?and Regions CDMO Capacity Share MM Giant MM Large [7 Mid Small MM NA Mi apac (7 EU RoW
Slide 53: Biologics Pipeline Growth Requires CDMOs with Capacity and Breadth
Biologics Pipeline Growth Requires CDMOs with Capacity and Breadth Biologics Industry Pipeline 2023 Biologics Pipeline (Number of Molecules)! (Clinical to Marketed Number of Molecules in Thousands)? Hl Clinical §§) Launch |) Commercial CAGR Expected Growth 2023 - 2028 A A = A = A 35 30 25 20 1s 10 o
Slide 54: Our Portfolio Offers End-to-End Solutions Across the Whole Life-Cycle
Our Portfolio Offers End-to-End Solutions Across the Whole Life-Cycle Late discovery Early-clinical Clinical Commercial Modalities Regulatory consulting to support Investigational New Drug (IND) and Biologics License Application (BLA) and Licensing Mammalian @. @.2 @ a. @ 2 Mirobi O e@ a @ a) mAb, L
Slide 55: Trusted Partner for Scale-Up and Commercialization
Trusted Partner for Scale-Up and Commercialization Commercial Sales Generated from Molecules Secured in Clinical or Commercial (%) Biologics Sales Generated from Commercial or Clinical Projects (%) Commercial and Secured in Commercial Clinical Phase 3 Secured in Clinical Our historical strength lies
Slide 56: Most Complete Offer Delivered Through a Global Network
Most Complete Offer Delivered Through a Global Network Pure-play CDMO and global Competitor! — Nl EERE Bee eee network make us a partner Cel a rT Ty Giansiss EE aa aa aaa Lonza has one of the most © Competitors Enna | nna rt complete offerings across technologies eal ass lel slealae | Competioré I I
Slide 57: Review of Key Business Units
Review of Key Business Units Drug Product Mammalian Bioconjugates Microbial . Services i. | s7
Slide 58: Review of Key Business Units
Review of Key Business Units Drug Product Mammalian Bioconjugates Microbial . Services me | 58 7
Slide 59: Strong Contribution and Outlook in Mammalian
Strong Contribution and Outlook in Mammalian Developed global . petwol across Sustained double- Business models Stig) fllpiiins Doth Recognized scales: from early- a + clinical and A digit growth from tailored to rien industry leader stage development to commercial with a R 2020 to 2023 customer nee
Slide 60: Capacity Utilization is High and More Will be Required for Novel Indications
Capacity Utilization is High and More Will be Required for Novel Indications Mammalian Industry Capacity Utilization Sales Forecast for Alzheimer's Disease mAbs (% Demand / Supply)! (bn USD)? Additional demand due g._Base Case ~15 ‘to Alzheimer's Disease ~0.2 2023 2029E Additional capacity must be a
Slide 61: Market Growth Driven by Healthy Pipeline and Commercial Programs
Market Growth Driven by Healthy Pipeline and Commercial Programs Mammalian Molecule Pipeline (Number of Molecules)! Total Capacity (m liters)? Commercial [Ml Launch [il Clinical CAGR CDMO Mil Hybrid Mj Pharma CAGR 2023 - 2028 2023 - 2028 2023 2028E 2023 2028 Sustained market growth, and increased de
Slide 62: Building Strong Clinical Pipeline to Secure Commercial Demand
Building Strong Clinical Pipeline to Secure Commercial Demand Evolution of Sales in Clinical and small-scale : . 5 Commercial (in m USD) Mammalian Molecule Growth by Clinical Phase (%) ‘a Molecule Numbers CAGR 2019 - 2022 a. Pre-clinical 37.8% Phase 1-2 16.1% Phase 3 21.6% Commercial 4.1% il Total 1
Slide 63: Mammalian has the Most Complete Market Offering Across the Value Chain
Mammalian has the Most Complete Market Offering Across the Value Chain Yr H Hl wae H i , , . , . Segment Participation | l onza H Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Preclinical Services Development Service Small <2000L Mid 21000-10'000L. Large Scale Manufacturing Global
Slide 64: Review of Key Business Units
Review of Key Business Units Drug Product Mammalian Bioconjugates Microbial . Services ae | 64 7
Slide 65: Capturing Accelerated Bioconjugates Market Growth with an Integrated Offering
Capturing Accelerated Bioconjugates Market Growth with an Integrated Offering and Early Mover Position Leading player with stronghold in commercial space and Solid growth and highly Strategic focus on life utilized asset. Strongly growing Drive innovation as a market >10%, ADC A poers cycle manageme
Slide 66: ADCs - the Science and the Offering
ADCs - the Science and the Offering Antibody targets cancer cells Linker joins antibody and drug Cytotoxic drug destroys cancer cells Bioconjugation Drug product services 1 Antibody Drug Conjugate | Biologics | Small Molecules ADCs' are a highly targeted and effective cancer treatment Integrated off
Slide 67: Strong Growth of the ADC Conjugation CDMO Market at 30% CAGR
Strong Growth of the ADC Conjugation CDMO Market at 30% CAGR Pipeline (Number of Molecules)> Bioconjugation CDMO ADC Conjugation CDMO Market Size (bn USD)! Market Size (bn USD)? 1 ADC Conjugation CDMO market Commercial || Phase 2 {i Preclinical Phase 3 (0) Phase 1 600 1-2 400 -500 01-03 Ye 2023 2028
Slide 68: Ahead of Competition in Many Steps of the Conjugation Value Chain
Ahead of Competition in Many Steps of the Conjugation Value Chain Segment Participation Competitor 2 Competitor 3 Competitor 4 Competitor 5 DS' Development / Manufacturing Linker Manufacturing Small-Scale Conjugation Large-Scale Conjugation DP? Development/ Manufacturing HE = Complete ‘Source: Lonza
Slide 69: End-to-End Offering Delivers Value to Our Customer and Business
End-to-End Offering Delivers Value to Our Customer and Business Expected Bioconjugate Revenues from Integrated Program in 2024 Value created across Biologics ~50% of current Drug Product opportunities are linked to Lonza mAbs supply 25% 70% of Lonza’s top ten customers leverage a multi-platform solu
Slide 70: Market Demand and Innovation Supported by Business Growth
Market Demand and Innovation Supported by Business Growth Very strong ADC CDMO market growth ~ ~*~ ~65 batches ~300 batches! High demand for integrated offerings to reduce complexity 13 Programs 32 Programs Need for Innovation: diverse payloads attached to New multi-purpose and dedicated assets mAbs
Slide 71: Review of Key Business Units
Review of Key Business Units Drug Product Mammalian Bioconjugates Microbial . Services <a. 7” 7
Slide 72: Strong Performance in the Robust Microbial Market
Strong Performance in the Robust Microbial Market Ramp up of new Our molecule pipeline Sales grew 35% from mid-scale asset and grew by more than 15% Selective molecule 2020 to 2023 renewed customer CAGR from 2019 to acquisition strategy pipeline 2022
Slide 73: Microbial CDMO Market Growth Driven by Robust Molecule Pipeline
Microbial CDMO Market Growth Driven by Robust Molecule Pipeline Microbial Molecule Pipeline (Number of Molecules)! Total Capacity (in m liters? 1) Market supply Mi Launch Ml IND CAGR CDMO Mi Hybrid Ml Product CAGR 2023 - 2028 lon 2023 - 2028 1.6-1.7K 0.7-0.8 0.7-0.8 2 2023 2028 2023 2028 CDMO market
Slide 74: Lonza Offers the Most Complete Service in the Microbial Market
Lonza Offers the Most Complete Service in the Microbial Market HE = complete ‘Source: Lonza internalanalysis Lonza Capital Markets Day 2023 | 74
Slide 75: Review of Key Business Units
Review of Key Business Units Drug Product Mammalian Bioconjugates Microbial . Services Be me | 75 ?
Slide 76: Drug Product Services (DPS) Operates in an Attractive Market Segment
Drug Product Services (DPS) Operates in an Attractive Market Segment 1.5 - 2m doses Signings: A produced between Drug product 2036 YoY growth in 2022, DPS 2022-2028 commercial anchor ~ introduetions every year since GxEgUisa 20 customer for Visp since August 2019 2020 customer projects Expect to rea
Slide 77: Sustained DPS Market Growth in a Highly Outsourced Market
Sustained DPS Market Growth in a Highly Outsourced Market The Outsourcing Rate of Activities for Sterile Drug Product Molecule Pipeline (Number of Molecules)! Injectables (%P 1) Market supply [il Launch Mj IND CAGR Pre-formulation support 2023 - 2028 Formulation support Optimization of existing form
Slide 78: DPS Business is Closing the Gap with Other Market Leaders
DPS Business is Closing the Gap with Other Market Leaders “| mI H Hl Sea i , . . . . Segment Participation | l onza H Competitor 1 Competitor 2 Competitor 3 Competitor 4 Competitor 5 Formulation development F&F Clinical F&F Commercial Global Footprint HE = Participation =Limited 71 New commerciallin
Slide 79: Division Summary
Division Summary Operations Innovation Financials Lonza Capital Markets Day 2023 | 79
Slide 80: Tailored Customer Offerings on a Global Scale
Tailored Customer Offerings on a Global Scale Portsmouth, US Stein, CH 5x Slough, UK Clinical Commercial , <> SY Cambridge, DP’ pp! e Uke e Hayward, US b ¢ 2n glk Cambridge, Ses US og e Porrifio, ES Visp, CH Ib@X® | onsen 2x Facility Clinical 8x Facility DP! BC2 MB « ‘DP: Drug Product Source: Intern
Slide 81: Enhancing our Technological Edge through Targeted Innovation
Slide 82: Licensing of Biologics Technologies Anticipates Trends and Creates Innovation Opportunities
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Slide 84: Future Investments Focus on Expanding Commercial Capacity
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Slide 86: Closing Remarks
Slide 87: Small Molecules
Slide 88: Executive Summary
Slide 89: Proven Strategy to Create and Capture Value
Slide 90: Our Leading Industry Reputation Developed over 40 Years
Slide 91: We Play in an Attractive and Growing Market
Slide 92: Our Capabilities are Well Aligned with Key Market Trends
Slide 93: We are a Trusted Partner for Scale-Up and Commercialization
Slide 94: Our Highly Potent API (HPAPI) Expertise Supports Blockbuster Oncology Products
Slide 95: A Strong Financial Performance Track Record
Slide 96: Investing in Strong Global Network to Drive Future Growth
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Slide 98: Closing Remarks
Slide 99: Cell & Gene
Slide 100: Executive Summary
Slide 101: Review of Key Business Units
Slide 102: Review of Key Business Units
Slide 103: Cell & Gene Technologies are Poised to Remain a Commercialization Leader
Slide 104: The Market Shifted from Optimism to Temporary Slowdown, with a Strong Outlook
Slide 105: Clear Trend for Increased Outsourcing
Slide 106: Lonza has a Robust Strategy and Benefits from Global Trends in Cell & Gene
Slide 107: Our Competitive Position is Strong Across Both Modalities and Services
Slide 108: The Largest CDMO Capability and the Three Outsourced, Commercial Products
Slide 109: Set to Remain a Leader in the Commercialization of Cell & Gene Therapies
Slide 110: Strategically Investing in Novel and Disruptive Technologies
Slide 111: Review of Key Business Units
Slide 112: Bioscience Continues to Deliver Above Market Growth and Strong Margin Progression
Slide 113: Innovation is at the Heart of our Competitive Advantage
Slide 114: Review of Key Business Units
Slide 115: Cocoon Platform Can Solve Cell Therapy Manufacturing Challenges
Slide 116: Treating Patients Across the World with the Cocoon Platform
Slide 117: Lonza Cell & Gene Division Has a Strong Financial Track Record
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Slide 119: Closing Remarks
Slide 120: Capsules & Health Ingredients
Slide 121: Executive Summary
Slide 122: Well Positioned in Attractive and Robust Markets
Slide 123: Industry Experienced Market Headwinds Through COVID-19 and Post-Pandemic Recovery
Slide 124: HEC Market Growth Remains Robust While Pandemic Surge Led to Capacity Expansion
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