Investor Relations June 2020 Contents . Lonza at a Glance . Full-Year 2019 Overview . Outlook 2020 . Lonza Segments . Pharma Biotech & Nutrition (LPBN) . Specialty Ingredients (LSI) . Appendices Note: Since 1 March 2019, Lonza has been operating in a Lonza Pharma Biotech & Nutrition segment and a Lonza Specialty Ingredients segment. Restated 2018 financials are published here. 2 2 2 Lonza at a Glance Lonza – Leading CDMO Player Globally, and Leading in Microbial Control Substantial scale and strong growth across all key metrics 70% of Group 6.8% 4.2bn 980 bps sales Sales CAGR 2019 LPBN Sales CORE EBITDA Margin 32.9% 2012-2019 in CHF Improvement 2012-2019 2019 LPBN CORE EBITDA Margin Pharma Biotech & Nutrition 5.9bn (LPBN) 2019 Sales in CHF 1.7bn 2019 LSI Sales In CHF 27.4% 2019 CORE EBITDA 17.8% Margin 2019 LSI >575 CORE EBITDA Margin 30% of Active Patent Families >800 Group Brands Specialty sales >55 15,468 Ingredients Employees End of 2019 Manufacturing Sites (LSI) 123 years of history *Growth rates based on reported figures at actual exchange rates. No adjustment for acquisitions and divestments reflected, except 2018 and 2019 figures, which are restated for reorganization of Lonza's Segments LPBN / LSI (excluding Water Care business as discontinued operations) CORE definition: See appendix 4 Current Business Portfolio Nutritional hard capsules business becoming part of LPBN Organizational changes in 2019 Lonza Pharma Biotech & Nutrition (LPBN) Lonza Specialty Ingredients (LSI) Alignment of the scope of segments CDMO Services Businesses Microbial-Control Solutions . Integrating the nutritional hard capsule business Small molecules Professional hygiene and small portfolio for nutritional ingredients Mammalian and microbial Home and personal care into Pharma & Biotech Cell and gene technologies Wood protection Material protection . Designed to strengthen collaboration and Product Businesses Paints & coatings leverage synergies within the capsules businesses Bioscience Crop protection Capsule systems Specialty Chemicals Services Nutritional ingredients Start of carve-out of Lonza Specialty Ingredients Composites Custom development & manufacturing Performance chemicals & intermediates . LSI will operate independently, but remain a fully owned segment of Lonza Group . Increase focus on LSI priorities and optimal CHF 4.2bn 11,148 CHF 1.7bn 2,504 organization model Sales Employees Sales Employees 5 Lonza Geographic Overview Capitalizing on our global footprint (overview manufacturing and R&D sites, and sales offices) Lonza has more than 100 sites and offices 2019 sales by region 1 Asia Other 14.2% 1.7% Europe 38% Americas 46.1% Pharma Biotech & Nutrition Specialty Ingredients 1 Includes Africa, Australia & New Zealand and Others 6 Progressing LSI Carve-out According to Timelines and Defined Milestones Completion of operational separation expected mid-2020 Cross-functional workstreams Selected milestones in 2020: . Dedicated legal entities by business/segment (operational in Carve-out H1 2020) Tax structure Visp Nansha . Assignment of employees to segments Regional Global real Carve-out HR carve-out estate financials . Set up of service and supply agreements between the two segments progressing Environment IT Comms Treasury . Continued progress in setting up systems to reflect new legal entity structure Procurement Logistics Legal / IP Regulatory 7 Full-Year 2019 Overview Full-Year 2019 Corporate Overview Pharma Biotech & Nutrition driving performance, headwinds in Specialty Ingredients . Lonza Group delivers on guidance1 with 6.8% sales growth, resulting in CHF 5.9bn, and CHF 1.6bn CORE EBITDA, resulting in a 27.4% margin . Pharma Biotech & Nutrition (LPBN) as driver, with 11.0% sales growth and 32.9% CORE EBITDA margin . Specialty Ingredients (LSI) shows improved 17.8% CORE EBITDA margin, despite sales growth of -3.2%; carve-out progressing according to plan . Lonza Group outlook 2020: above mid single-digit sales growth2, driven by high single-digit sales growth in LPBN, and overall stable CORE EBITDA margin . Mid-Term Guidance 2022 confirmed, supported by solid building blocks 1 Guidance for FY 2019: mid to high single-digit sales growth and sustained high CORE EBITDA margin level 2 Outlook 2020 in constant currency CORE definition: See appendix 9 Full-Year 2019 Results Comparison vs. Prior Year (Continuing Operations) 5,920million 1,620million1 27.4%1 Sales (CHF) +6.4%6.8% CORE EBITDA (CHF) 7.2% CORE EBITDA Margin +3010 bpsbps 13.59CHF2 9.1% 15,468 CORE EPS Diluted 10.113.4% % ROIC 110110bps bps Employees 1107.2 bps% 1 IFRS 16 accounting adjustment on leases had a positive CORE EBITDA impact of CHF 33 million in 2019 (60 bps positive CORE EBITDA margin impact), offset by costs related to the divestment of the Water Care business and carve out of Specialty Ingredients (50 bps negative CORE EBITDA margin impact). IFRS Results – Continuing Business: EBITDA – CHF 1,525 million; 6.7 % change, EBITDA Margin – 25.8%; 0bps change 2 EPS diluted – CHF 10.22; 16.5% change (IFRS Results – Continuing Business) CORE definition: See appendix 10 Segment Financial Performance Full-Year 2019 Comparison vs. Prior Year (Continuing Operations) Pharma Biotech & Nutrition 4,167million 1,371million1 32.9%2 Sales (CHF) 10.811.0% % CORE EBITDA (CHF) 9.710.0% % CORE EBITDA Margin -30(30bps) bps Specialty Ingredients 1,693million 302million3 17.8%4 Sales (CHF) -3.8(3.2%) % CORE EBITDA (CHF) +9.7(0.3%) % CORE EBITDA Margin + 2050bps bps 1 CORE EBITDA excl. IFRS 16 – CHF 1,347 million; 8.1% change 2 CORE EBITDA Margin excl. IFRS 16 – 32.3%; (90bps) change 3 CORE EBITDA excl. IFRS 16 – CHF 297 million; (2%) change 4 CORE EBITDA Margin excl. IFRS 16 – 17.5%; 20bps change CORE definition: See appendix 11 Lonza Net Leverage 2017 to 2019 Continued deleveraging on the back of strategic growth investments Net Leverage (Net Debt / CORE EBITDA) Solid investment grade . Deleveraging well below guidance of less est. 2.8x than 2x net debt/CORE EBITDA by end 2019 2.7x 2.3x . Debt reduction behind strong operational 2.1x 1.83x free cash flow and divestment of Water Care business with net proceeds of CHF 620 million . Successful refinancing of loan facilities in 2019, leveraging successful initiation of S&P BBB+ credit rating with stable outlook in 2019 . Commitment to maintain solid investment At closing of Capsugel FY20172 FY20183 HY20193 2019 grade rating going forward acquisition1 1 Net Debt/CORE EBITDA is calculated based on the CORE EBITDA of the last 12 months, including Capsugel. The Capsugel acquisition closed on 5 July 2017 2 2017 including Capsugel as of 5 July 2017, restated for IFRS 15 3 Net Debt/CORE EBITDA is calculated based on the CORE EBITDA of the last 12 months CORE definition: See appendix 12 Lonza Financial Performance Trends from 2012 to 2019 Sales in CHF million CORE EBITDA in CHF million CAGR 2012 – 2019 – 6.8% 27.4 27.3 1,511 Total Growth – 58.2% 5,920 % Margin 26.5 5,542 1,620 5,083 1,511 1,349 4,132 22.2 3,803 20.4 20.9 3,741 3,584 3,640 19.8 17.6 918 743 793 657 711 2012 2013 2014 2015 2016 2017 pro- 2018 2019 2012 2013 2014 2015 2016 2017 pro- 2018 2019 forma restated forma restated CORE RONOA in % CORE EPS Diluted in CHF CAGR 2012 – 2019 – 17.1% 13.6 31.4 12.0 30.0 Total Growth – 202.2% 28.5 10.8 21.5 8.4 16.4 6.8 6.8 14.3 12.3 11.0 4.5 5.0 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 *Growth rates based on reported figures at actual exchange rates. No adjustment for acquisitions and divestments reflected, except 2018 and 2019 figures, which are restated for reorganization of Lonza's Segments LPBN / LSI (excluding Water Care business as discontinued operations) CORE definition: See appendix 13 Outlook 2020 Outlook 2020 The year ahead for Lonza Group and its segments . High single-digit sales growth in Pharma Biotech & Nutrition and low single-digit sales growth in Specialty Ingredients anticipated in 2020 Above mid single-digit . Overall stable CORE EBITDA margin despite growth projects in sales growth LPBN with CAPEX investments expected to remain at 2019 levels, related OPEX and start-up cost for significant projects scheduled to start operations by the end of 2020 . Outlook factors in continued macroeconomic uncertainty and Stable CORE some potential ongoing headwinds in the cyclical parts of EBITDA Lonza's Specialty Ingredients businesses margin level Outlook 2020 is based on present business composition, the current macroeconomic environment, existing visibility and constant exchange rates. CORE definition: See appendix 15 Confirming Mid-Term Guidance 2022 Building blocks in place to deliver on Guidance Pharma Biotech & Nutrition Specialty Ingredients (LPBN) (LSI) Sales CHF CORE RONOA Sales Growth High single-digits Low to mid single-digits 7.1 billion 35% 2017PF1-2022 2022 CORE >30% >20% EBITDA Margin . Manufacturing excellence . Microbial control expertise CORE EBITDA Double-Digit . Operating leverage . Procurement and supply- Margin 30.5% ROIC Building . Growth projects and chain excellence Blocks CAPEX investments . Productivity gains 1 Pro forma as Lonza Full-Year 2017 financial results (restated for IFRS 15) include Capsugel Full-Year 2017 financial results Mid-Term Guidance 2022 is based on present business composition, the current macroeconomic environment, existing visibility and constant exchange rates. CORE definition: See appendix 16 Lonza Priorities 2020 Setting up the business for continued growth . Delivering financial targets 2020 and building blocks for Mid- Term Guidance 2022 . Realizing LSI carve-out on time and on budget . Focusing on execution of growth projects and new partnerships in LPBN, as well as strengthening R&D and innovation . Continuing talent attraction and retention as well as ensuring constant pipeline to develop the future leaders of the company . Establishing clearer targets and action plan for implementation of environmental, social and governance (ESG) measures .