Press release
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News Release – Ad h oc announcement pursuant to Art. 53 LR Lonza Group Ltd | Muenchensteinerstrasse 38 | CH - 4002 Basel | Switzerland +41 (0) 61 316 81 11 | www.lonza.com | media@lon za.com 1 / 3 Lonza Upgrades Organic Growth Model a nd M id - term F inancial A mbitions at Capital Markets Day ; Q3 2026 In Line with Expectations • With the transformation into a focused, pure - play CDMO 1 complete , and operati onal and financial performance strengthened , Lonza upgrades its Organic Growth Model 2 and resulting mid - term financial ambitions . • Th e model entails low - teens (10 - 13%) organic CER sales growth on average over time , CORE EBITDA growth ahead of sales growth , an upgraded ambition to reach a CORE EBITDA margin i n the high thirties in the mid - term , driving ROIC 3 up to two to three times WACC 4 , and an improving FCF conversion 5 on average over time . • Q3 2026 Q ualitative U pdate: Lonza performed well and in line with expectations across all Business Platforms , and confirms its Full - Year 2026 Outlook, which was upgraded in H1 2026. Basel, Switzerland, 14 October 202 6 – At its Capital Markets Day in Vacaville, California, Lonza reports progress of its One Lonza Strategy to d eliver long - term , profitable , above - market grow th. In less than two years, Lonza has completed its transformation into a pure - play CDMO , following the exit 6 of the Capsules & Health Ingredients business and further divestments. Based on s tronger operati onal and financial performance, successful execution of growth project s and attractive future market opportunities, Lonza upgrades its Organic Growth Model . Wolfgang Wienand, CEO , Lonza, commented: “ Lonza performed well in Q3 2026 and we continued to successful ly execute our One Lonza Strategy . The tran sformation into a pure - play CDMO has created a stronger, more integrated global organization that is delivering for our customers across all Business Platforms. The power of the Lonza Engine and the improvements we are bringing to the business further strengthen our confidence in our Organic Growth Model and our ability to improve margin faster over time. We continue to significantly grow, expand profit margins and returns , increase cash generation, and allocate capital with discipline. It is this highly di fferentiated model that will drive sustainable long - term value creation for our customers and their patients, our shareholders and our people at One Lonza ." ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ 1 Co ntract Development and Manufacturing Organ ization . 2 F or Lonza’s continuing CDMO business, exclu ding Capsules & Health Ingredients . 3 Return on Invested Capital. 4 Weighted Average Cost of Capital as of 2026 . 5 Free cash flow as % of EBITDA. 6 In March 2026, Lonza agreed to divest 60% of its Capsules & Health Ingredients business to Lone Star Funds. The transaction is expected to close before the end of 2026.
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News Release – Ad h oc announcement pursuant to Art. 53 LR Lonza Group Ltd | Muenchensteinerstrasse 38 | CH - 4002 Basel | Switzerland +41 (0) 61 316 81 11 | www.lonza.com | media@lon za.com 2 / 3 Lonza’s Organic Growth Model A s a structural growth compounder , Lonza delivers r esilient and repeatable above - market o rganic sales growth , high and further increasing profit margin s and improving cash generation which funds investments into future growth at high returns to deliver sustainable long - term value to its shareholders . M atur ing high - retur n growth projects, improvements in operational, commercial and CapEx 7 performance, and continued discipline in overhead costs are progressing well. Based on th is , Lonza upgrades its Organic Growth Model of low - teens organic CER sales growth on average over time with an accelerati on of the CORE EBITDA margin expansion , now reach ing high thirties in the mid - term . It also expands the model to include a mid - term ROIC ambition of two to three times today’s WACC and an improving FCF conversion on average over tim e , r eflecting its disciplined investment approach and overall greater capital effi ciency . Unchanged, o rganic CapEx is expected to fluctuate around mid - to - high teens percentage of sales, while Lonza remains committed to a progressive 8 dividend distribution , all in line with its Capital Allocation Framework first shared in 2024 . Q3 2026 qualitative business update In Q3 2026, Lonza continued to perform well, in line with expectations across all Business Platforms. Lonza reiterates its Full - Year 2026 Outloo k , as upgraded after H1 2026, of 11 – 12% CER sales growth and a CORE EBITDA margin of 33 – 34%. The company also reiterates its expectation of a negative FX impact of approximately 2 % to 3% on 2026 sales growth. Q3 performance in Capsules & Health Ingredients was also in line with expectations, with Lonza continuing to expect mid - single - digit CER sales growth and further CORE EBITDA margin expansion for F ull - Y ear 2026. About Vacaville The Capital Markets Day is being held at Lonza’s Vacaville facility, acqu ired in 2024 from Roche . It is the company’s largest Integrated Biologics site for the commercial manufactur e of complex biologics . During the investor event, management will share insights into Lonza’s Integrated Biologics Business P latform , which combines scientific , technological and manufacturing capabilities in an industry - leading end - to - end 9 offering . The Capital Markets Day 2026 presentation is available to download here . To j oin the live webcast on 14 October 2026 at 09:00 PT / 18:00 CEST, please register here . ⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯⎯ 7 Capital expenditures. 8 Maintaining or increasing dividend per share each year . 9 From early - stage development to c ommercial manufacturing .
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News Release – Ad h oc announcement pursuant to Art. 53 LR Lonza Group Ltd | Muenchensteinerstrasse 38 | CH - 4002 Basel | Switzerland +41 (0) 61 316 81 11 | www.lonza.com | media@lon za.com 3 / 3 About Lonza Lonza is the world’s leading contract development and manufacturing organization (CDMO) dedicated to serving the healthcare industry. Working across three continents, Lonza’s global team of approximately 17 ,000 colleagues 2 works alongside pharma and biotech companies to turn their breakthrough innovations into viab le therapies. This enables customers to bring life - saving and life - enhancing treatments to patients worldwide with a combination of cutting - edge science, smart technology and lean manufacturing. Our company generated sales of CHF 3. 4 billion with a CORE EBITDA of CHF 1. 2 billion in Half - Year 2026. Find out more at www.lonza.com . Lonza Contact Details Daniel Buchta Head of Investor Relations Lonza Group Ltd Tel +41 61 316 29 85 daniel.buchta@lonza.com Victoria Morgan Head of External Communications Lonza Group Ltd Tel +41 61 316 22 83 victoria.morgan@lonza.com 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 listi ng requirements but remains subject to Rules 217 and 751 of the SGX - ST Listing Manual. Certain matters discussed in this news release may constitute forward - looking statements. These statements are based on current expectations and estimates of Lonza Group Ltd, although Lonza Group Ltd can give no assurance that these expectations and estima tes will be achieved. Investors are cautioned that all forward - looking statements involve risks and uncertainty and are qualified in their entirety. The actual results may differ materially in the future from the forward - looking statements included in this news release due to various factors. Furthermore, except as otherwise required by law, Lonza Group Ltd disclaims any intention or obligation to update the statements contained in this news release. All trademarks belong to Lonza, and are registered in the USA, EU and/or CH, or used in common law, or belong to their respective third - party owners and are used for informational purposes only.