Lonza Group Ag · SIX:LONN
Lonza — J.P. Morgan Healthcare Conference 2024
26 slides from Lonza's conference presentation, Jan 9, 2024
Slide 1: Lonza – Capturing Growth and Value in the CDMO Market
Enabling a Healthier World LONZa Lonza —- Capturing Growth and Value in the CDMO Market Philippe Deecke, Chief Financial Officer 9 January 2024
Slide 2: Agenda
Agenda Lonza today and our path forward How we win Concluding remarks Q&A
Slide 3: A Leading Strategic Partner to the Healthcare Industry
A Leading Strategic Partner to the Healthcare Industry Attractive Business Delivering Strong KPls and Financials 2022 Figures ~~ JO, >1,025 ~800 21 esi Molecules!2 CDMO customers Pome Ongoing - bite) eee ‘owth Projects in commercial 6.2bn +16% 32% 23% Sales CAGR 2019 - 2022 in CER* Average Capex as
Slide 4: Pre-clinical & Phase I, Phase II/III, Commercial
10-15% Pre-clinical & Phase I 15-20% Phase II / III ~70% Commercial
Slide 5: Lonza's Journey of Delivering Strong Topline Growth
Lonza’s Journey of Delivering Strong Topline Growth Sales 2019 — 2022 in bn CHF Gay Strong underlying business <P, 6.2 5.4 wnt 11-13% revenue growth ex-COVID 42 45 el ; All divisions grew above market New organic investments driving growth 2019 2020 2021 2022 @ CORE EBITDA Margin ‘Sales CAGR 2019-20
Slide 6: Our Strategic Priorities
Our Strategic Priorities INNOVATION e Anticipating technological trends e Building IP and protected capabilities e Investing in data analytics and Al COLLABORATION e Long-term partnership with customers e Creating joint customized solutions SERVICE e Best-in-class quality track record e Customer sat
Slide 7: Lonza is Uniquely Positioned to Capture Growth and Value in CDMO Market
Lonza is Uniquely Positioned to Capture Growth and Value in CDMO Market Global leader and pure-play CDMO End-to-end offering across all divisions Strong and long-standing customer relationships Global, western-focused manufacturing network Strong project execution capabilities Leader in innovation a
Slide 8: Agenda
Agenda Lonza today and our path forward How we win Concluding remarks Q&A
Slide 9: Market growth by modality
15% 9-11% 4–6% Biologics Small Molecules Cell & Gene Techn. 79% 66% 2023 2028
Slide 10: Lonza Delivers Value Through Growth Investments and Operational Excellence
Lonza Delivers Value Through Growth Investments and Operational Excellence The CDMO market remains highly attractive with strong demand from end-markets Lonza is serving Attractive divisional strategies Organic Operating Value investments leverage creation * Continuous Broad product Strong pipeline
Slide 11: Biologics: Delivering a Complete CDMO Offering Across the Lifecycle
(Biologics Delivering a Complete CDMO Offering Across the Lifecycle Multi-platform Solutions Enabling Integrated Offerings! Signed Business in mCHF Top 7 Customers by Signed Business in 2023 0 Full lifecycle management Customers MM MI BC) DP Customer1 @ v v v Customer2 @ v v v End-to-end offering Cu
Slide 12: Biologics: Tailored Customer Offerings on a Global Scale
(Biologics Tailored Customer Offerings on a Global Scale Portsmouth, US Stein, CH 5x Slough, UK Clinical Commercial , <> & SJ Cambridge, DP! DP! Se e UK e == a” | td Hayward, US b ¢ 2x glk Cambridge, Ses US e ° Porrifio, ES ibex | «sar 2x Facility Clinical 8x Facility DP! BC2 MB « Source: Internal d
Slide 13: Small Molecules: Meeting Customers' Complex Needs
(Small Molecules Meeting our Customers’ Complex Small Molecules Needs Strategic Priorities Be a strong development partner driven by science Be present throughout the product lifecycle Make the customer experience great 12019 - 2022 Sales CAGR at constant exchange rates 22019-2022 Sales CAGR at actu
Slide 14: Cell & Gene: Driving Commercialization of Cell & Gene Therapies
(Cell & Gene Driving Commercialization of Cell & Gene Therapies Strategic Priorities Increasing Focus on Commercial Portfolio in CGT Commercial % of CDMO Revenues from Commercial Programs Products! . . 7 ‘ C1) Manufacturing expertise Commercial Revenue Share a Increase 2 ] Commercialization track :
Slide 15: Capsules & Health Ingredients
(@)Capsules & Health Ingredients Leading with a High-Value and Innovative Capsule and Service Offering Strategic Priorities Process and Product Innovation to Extend Leadership Production Line Output Capsugel® Enprotect® Novel Dual Layer Innovation Platform for targeted intestinal release (1) Growth
Slide 16: Ahead of Market Sales Growth and Margin Improvements Across Divisions
(Ahead of Market Sales Growth and Margin Improvements Across Divisions Sales CAGR se CORE EBITDA margin Division 2024 - 2028 (CER) 2024 - 2028 Biologics Mid-teens >35% Mid-to-high single-digit >30% Mid-teens >25% Low-to-mid single-digit >30% Lonza- J.P. Morgan Healthcare Conference 2024 | 16
Slide 17: Large and Stable Base Complemented by Dynamic Growth Portfolio
(2)Large and Stable Base Complemented by Dynamic Growth Portfolio Sales: Base vs. Growth Business Base Business Growth in CHF ne 2024 2028 ‘CHI and Bioscience i Base Incl. ramped up assets, product businesses! Growth Large assets in ramp-up Stable, growing and resilient business High asset utilizati
Slide 18: Growth Project Portfolio at a Glance
(2)Growth Project Portfolio at a Glance 21 Large Growth Projects CAPEX above CHF 50m Total projects CAPEX split of the 21 projects 10% 9 CHF 1.8bn 90% Modalities Cumulative celles comme mixed 2018 - 2023E assets 75% 15% 30% of Capex invested in IRR threshold ROIC threshold growth 2019-2022 (at peak)
Slide 19: Value capture across clinical and commercial stages
Clinical1 Captured during Captured at Clinical phase2 Commercial stage Commercial and Phase 3 Clinical Captured during Captured at Clinical phase2 Commercial stage Commercial
Slide 20: Investment Program Securing Industry Leadership
(2)Investment Program Securing Industry Leadership Illustrative> fe . ee ment threshol Growth Project CAPEX' Wave 1 ! 7 projects Pre-LSI carve-out : IRR 15% investments : 9, 2018 - 2020 Leal ROIC 30% Broadeni 1% 19 2 2 22 2 24 2 26 27 28 Wave 2 roadening : : offering and Growth Project Sales! 11 pro
Slide 21: Our Capital Allocation Strategy Prioritizes Organic Growth, Shareholder Return and Bolt-On M&A
(2)Our Capital Allocation Strategy Prioritizes Organic Growth, Shareholder Return and Bolt-On M&A De-risked, attractive Organic Investments opportunities based on Strong FCF market needs Generation ! Focus on capital i allocation priorities 2 Progressive dividends 0 p with pay-out ratio of 35 -— ee
Slide 22: Reiterating our Group Mid-Term Guidance
(@Reiterating our Group Mid-Term Guidance 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
Slide 23: Agenda
Agenda Lonza today and our path forward How we win Concluding remarks Q&A
Slide 24: Capturing Growth and Value in the CDMO Market
Capturing Growth and Value in the CDMO Market Organic investments in growing modalities to capture value in attractive market Broad range of technologies and capabilities to meet complex customer needs Best-in-class and industry reference in technical and regulatory expertise Solid strategies and wo
Slide 25: Q&A
Q&A
Slide 26: Additional Information and Disclaimer
Additional Information and Disclaimer 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 req