Financial Performance - Lonza Group achieved solid H1 performance with sales of CHF 3 billion and a CER growth of 16.8%[6], resulting in a CORE EBITDA of CHF 987 million and a margin of 33.1%[6] - The Biologics division experienced strong growth, with sales increasing by 26.2% CER[24], while the Small Molecules division saw a decrease in sales of 21.3% CER due to phasing of customer deliveries[24] - Capsules & Health Ingredients division achieved a sales growth of 4.0% CER and a CORE EBITDA margin of 35.2%[24] - H1 2022 CAPEX was reported at 28.2% of sales[13] Investments and Strategy - Lonza announced an investment of approximately CHF 500 million in Fill & Finish to build a large-scale commercial drug product facility, expected to be completed in 2026[6, 10] - The company is delivering CAPEX projects to support long-term growth, with investments across divisions to expand capabilities[11, 13] - Over 80% of investments are to support growth, with a total project portfolio of CHF 841 million in H1 2022[28] Outlook and Priorities - Lonza confirmed its Group Outlook 2022, projecting low to mid-teens CER sales growth and CORE EBITDA margin improvement[6] - The company is focused on delivering CAPEX investment projects, meeting financial targets through operational excellence, and maintaining focus on innovation and differentiation[8] - Lonza continues to advance its ESG agenda, incorporating ESG targets into employee and executive remuneration policy[8, 14]

Financial Data and Key Metrics Changes - Sales grew by 20% at constant exchange rates, reaching CHF 4.5 billion for the full year, supported by growth projects [6][24] - CORE EBITDA was CHF 1.7 billion, resulting in a margin of 30.8%, an increase of 20 basis points year-on-year [6][24] - CapEx reached 24% of sales, up from around 20% in 2020, with CHF 1.3 billion allocated primarily for growth projects [7][31] Business Line Data and Key Metrics Changes - Biologics division saw a sales growth of 24.7%, driven by large growth projects, although margins were impacted [28][42] - Small Molecules division achieved 11.6% sales growth, supported by commercial projects despite divestments [29][44] - Cell & Gene division experienced 26.6% sales growth, with a positive margin achieved in Q4 [46] - Capsules & Health Ingredients division reported 5.6% sales growth, with margin improvements driven by high-value offerings [47] Market Data and Key Metrics Changes - Customer portfolio strengthened with around 170 new CDMO customers and over 400 new clinical and commercial programs signed [9] - Geographical distribution shows a predominance of customers in the Americas, followed by EMEA, with APAC expected to grow [9] Company Strategy and Development Direction - The company is focused on long-term growth through significant CapEx investments and operational excellence [7][49] - Continued emphasis on sustainability and ESG targets, with a commitment to reduce CO2 footprint and increase renewable energy sourcing [17][20] - The company aims to maintain a balanced customer mix between large pharma and biotech, ensuring a robust pipeline for future growth [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across all business lines and reaffirmed mid-term guidance of low-teen sales growth until 2024 [8][50] - The company is prepared to manage ongoing supply chain challenges and expects to navigate these with minimal impact on operations [16][27] - Management highlighted the importance of maintaining flexibility for future investments and acquisitions [38][100] Other Important Information - The company reported a significant improvement in ROIC, reaching 10.7% [35] - The cash position at year-end was CHF 3.4 billion, with a negative net debt leverage ratio of 0.5x CORE EBITDA [37] Q&A Session Summary Question: Biologics margin progression - Management acknowledged that while large assets are ramping up, it takes 2 to 3 years for full ramp-up, and margin dynamics will remain influenced by both productivity and growth asset dilution [58] Question: Business mix change and profitability - Management confirmed a healthy mix of commercial and clinical customers, with top customers representing a smaller fraction of total sales [60][62] Question: CapEx investments and confidence - Management indicated that increased CapEx reflects strong customer demand and a robust pipeline, with a focus on derisking investments through customer commitments [65][67] Question: Growth comparison between 2021 and 2022 - Management noted that growth rates may not be linear and emphasized strong plans for Biologics growth, particularly in Cell & Gene therapy [70][71] Question: Impact of growth projects on operational efficiency - Management expects continued dilution from growth projects but anticipates an acceleration in margin improvement due to productivity gains [73][75] Question: Small Molecules growth and divestments - Management confirmed that divestments had an impact on growth but expressed confidence in the Small Molecules division's dynamics moving forward [88] Question: Relationship with Moderna and profitability - Management reiterated that the relationship with Moderna is expected to mature, leading to improved margins over time [91][93] Question: Inorganic growth plans and capital allocation - Management plans to focus primarily on organic growth investments while remaining open to bolt-on acquisitions as opportunities arise [100][102]

Financial Performance - Lonza achieved strong financial results in 2022, with sales of CHF 6.2 billion and a CER sales growth of 15.1%[3] - The company's CORE EBITDA reached CHF 2.0 billion, resulting in a margin of 32.1%[3] - A dividend increase of 17% to CHF 3.50 per share is proposed[3] - Lonza plans a share buyback of up to CHF 2 billion[3, 33] Divisional Performance - Biologics division experienced a sales growth of 21.7% and a CORE EBITDA margin of 37.5%[23] - Small Molecules division saw a sales growth of 5.9% and a CORE EBITDA margin of 30.3%[23] - Cell & Gene division's sales grew by 13.6%, with a CORE EBITDA margin of 16.7%[23] - Capsules & Health Ingredients (CHI) division had a sales growth of 5.9% and a CORE EBITDA margin of 33.0%[23] Investments and Outlook - CAPEX reached 30% of sales in 2022, reflecting continued growth investment[3] - Lonza anticipates a high single-digit CER sales growth and a CORE EBITDA margin of 30-31% for 2023[3, 55] - The company confirms its Mid-Term Guidance for 2024, projecting low teens CER sales CAGR and a CORE EBITDA margin of approximately 33-35%[3, 56]

Financial Performance - The company reported a sales growth of 14.7% at constant currency for the first half of 2021, achieving a 33% margin despite ongoing pandemic-related headwinds [4]. Business Line Performance - Specific performance metrics for each division were not detailed in the provided content, but the overall strong performance indicates positive trends across business lines [3]. Market Data - No specific market data or key indicators were mentioned in the provided content [3]. Company Strategy and Industry Competition - The company continues to navigate challenges posed by the pandemic while maintaining strong performance levels, indicating a focus on resilience and adaptability in its strategy [4]. Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite external challenges, suggesting a positive outlook for the second half of the year [4]. Other Important Information - The conference call included participation from various analysts and financial institutions, indicating a strong interest in the company's performance [5]. Q&A Session Summary - No specific questions or answers from the Q&A session were provided in the content [3].

Financial Performance - Lonza achieved strong performance with sales growth of 14.7% CER and a CORE EBITDA margin of 33.3% despite COVID-19 headwinds[5] - H1 2021 sales reached CHF 2542 million, reflecting a 14.7% increase CER[18] - CORE EBITDA for H1 2021 was CHF 847 million, a 14.8% increase CER[18] - The company's ROIC was 11.5%, a 0.7 percentage points increase[36] Strategic Initiatives - Lonza completed the divestment of its Specialty Ingredients business to Bain Capital and Cinven for an enterprise value of CHF 4.2 billion[6] - The company is investing heavily in internal growth projects, with 80% of H1 CAPEX of CHF 474 million allocated to support future growth[8] - An initial provision of CHF 290 million has been made for the first phase of remediation at the Gamsenried landfill site[15] Divisional Performance - Biologics division experienced sales growth of 16.7% CER with a CORE EBITDA margin of 38.2%[23] - Small Molecules division saw sales growth of 16.5% CER and a CORE EBITDA margin of 27.3%[23] - Cell & Gene division achieved sales growth of 24.7% CER with a CORE EBITDA margin of 16.1%[23] - Capsules & Health Ingredients (CHI) division had sales growth of 5.8% CER with a CORE EBITDA margin of 35.4%[23] Outlook - Lonza revised its 2021 outlook upwards to mid-teens CER sales growth[5, 69]

Financial Performance and Key Metrics - Lonza Group achieved 12.0% sales growth at constant currency and CHF 1.4 billion CORE EBITDA, representing a 31.2% margin [6][21] - The LPBN segment specifically saw 12.2% sales growth and a 32.1% CORE EBITDA margin [6] - The overall Lonza Group reported a sales growth of 9.5% in constant currency and a CORE EBITDA margin close to 28% [23] Business Segment Performance - The Biologics business was the primary driver of growth within the LPBN segment, significantly contributing to the company's performance during the pandemic [7][48] - The LSI segment, classified as discontinued operations, reported 3.4% sales growth and a 20.3% margin before its divestment [8] - The Small Molecules business delivered high-end single-digit sales growth and is expected to achieve double-digit sales growth in 2021 [56] - The Cell & Gene Therapy business is progressing towards breakeven and is expected to see further margin improvement in 2021 [64] Market Performance - The demand for large-scale capacity in the Biologics market remained strong, with a notable increase in new customers and programs [57][59] - The Capsules & Health Ingredients business experienced high single-digit sales growth, driven by nutritional offerings, despite lower demand for capsules due to the pandemic [68] Company Strategy and Industry Competition - The company is focusing on organic growth investments as its top priority, with a commitment to maintaining high rates of return [89] - Lonza is divesting the LSI segment to concentrate on its core LPBN business, aiming for a clearer identity and operational efficiency [9][80] - The company is also exploring opportunities in fill-and-finish capabilities to enhance its competitive position in the market [90] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious confidence about business performance in 2021, acknowledging the ongoing uncertainties due to the pandemic [79] - The company is guiding for low double-digit sales growth in 2021, with improved margins aligned with mid-term guidance for 2023 [77][78] - The management emphasized the importance of maintaining operational efficiency while continuing to invest in growth initiatives [45][81] Other Important Information - The company reported strong cash flow results, with operating free cash flow of CHF 0.5 billion, up 36% from the previous year [33] - CapEx levels exceeded guidance, with significant investments in growth projects, particularly in mammalian manufacturing [36][39] Q&A Session Summary Question: Observations as new CEO and potential changes - The new CEO noted strong technical expertise and responsiveness to client needs, indicating opportunities for continuous improvement [86] Question: Capital deployment post-LSI - The CFO confirmed that the priority remains on organic growth investments, with potential interest in vertical fill and finish capabilities [89][90] Question: Long-term margin targets - Management discussed the potential for margin expansion through efficiency gains and growth in the base business, guiding for improved margins in 2021 [92][100] Question: Sequential growth expectations for LPBN - Management indicated that growth could vary between the first and second halves of 2021, depending on contract releases [102][106] Question: Capacity utilization concerns - The CEO acknowledged the complexity of capacity utilization and emphasized confidence in meeting growing market demand [117] Question: Dividend policy - The CFO stated that the dividend policy remains stable, with a commitment to distribute between 25% and 40% of net income [119]

Lonza Group Ltd (OTCPK:LZAGF) Q1 2020 Earnings Conference Call April 17, 2020 7:00 AM ET Company Participants Albert Baehny - Chairman & Interim Chief Executive Officer Conference Call Participants KC Arikatla - Goldman Sachs Patrick Rafaisz - UBS Peter Welford - Jefferies Falko Friedrichs - Deutsche Bank Markus Gola - MainFirst Thomas Wrigglesworth - Citi Daniel Jelovcan - Mirabaud Patrick Wood - Bank of America Laura Lopez - Baader Helvea Naresh Chouhan - Intron Operator Ladies and gentlemen, welcome to t ...

Lonza Group Ltd (OTCPK:LZAGY) Q4 2019 Earnings Conference Call January 21, 2020 5:30 AM ET Company Participants Albert Baehny - Chairman & Chief Executive Officer Rodolfo Savitzky - Chief Financial Officer Conference Call Participants Daniel Buchta - Bank Vontobel Patrick Rafaisz - UBS James Quigley - JP Morgan Remo Rosenau - Helvetische Bank Holger Blum - Patinex Management Mark Purcell - Morgan Stanley Carla Banziger - Vontobel Asset Management Jo Walton - Credit Suisse Patrick Wood - BoA Merrill Lynch Pe ...

Lonza Group Ltd (OTCPK:LZAGY) Q2 2019 Earnings Conference Call July 24, 2019 8:30 AM ET Company Participants Marc Funk - Chief Executive Officer Rodolfo Savitzky - Chief Financial Officer Conference Call Participants Daniel Buchta - Vontobel Matthew Weston - Credit Suisse Paul Knight - Janney Patrick Wood - Bank of America Markus Gola - MainFirst Bank James Quigley - JPMorgan Chouhan Naresh - New Street Research Friedrichs Falko - Deutsche Bank Patrick Rafaisz - UBS Laura Lopez Pineda - Baader Bank Marc Fun ...

Lonza Lonza Half-Year Results 2019 Contents Lonza | --- | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------| | | | | | | | Half-Year 2019 Corporate Overview | | | | | Half-Year 2019 Financial Summary | | | | | Lonza Segments | | | | | Pharma Biotech & Nutrition (LPBN) | | | | | Specialty Ingredients (LSI) | | | | | Outlook 2019 ...