Introduction to the Healthcare Continuum

Transcription

1 Capital Markets Day Introduction to the Healthcare Continuum Richard Ridinger, CEO Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October 2016

2 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 requirements but remains subject to Rules 217 and 751 of the SGX-ST Listing Manual. Certain matters discussed in this presentation 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 estimates 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 presentation 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 presentation. Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

3 Capitalizing on Global Megatrends and Meeting Customer Needs Key Global Megatrends Lonza Offerings Common Key Drivers Growing world population Aging population in Western countries Movements of growing population into megacities Growing middle classes in BRIC-VISTA countries Resulting in the Need for Medication Healthy Food Hygiene Personal Care Clean Water High-Tech Materials Pharma&Biotech Segment Custom Custom Bioscience Solutions Specialty Ingredients Segment Consumer Care Agro Ingredients Coatings and Composites Water Treatment Long customerapproval times Strong need for innovation Increasingly more regulated environment Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

4 Target Markets and Technology Platforms Pharma& Biotech Consumer Care Agro Ingredients Coatings & Composites Water Treatment,, Service Products (Consumables, Tests, Media, Equipment) Biological Technology Fine Chemistry Hygiene, Personal Care, Home Care, Nutrition Animal Feed & Crop Protection Aerospace, Automotive, Metal Working, Plastics, Wood Treatment, Construction & Specialty Intermediates Recreational Pool & Spa, Municipal, Industrial & Surface Water Treatment Formulation & Application Technology Microbial Control Performance & Testing Regulatory Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

5 What Did We Achieve So Far? P P P P P P Stronger Focus on Target Markets Management of Business Portfolio Near-Term Cost Reduction Longer-Term Operational Improvements Cash Focus Strong Debt Reduction Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

6 HY 2013 HY 2014 HY 2015 HY 2016 HY 2013 HY 2014 HY 2015 HY 2016 Continuous Improvement in Both Segments Pharma&Biotech CHF mn HY 2016 HY 2015 % YoY Sales CORE EBITDA Margin 27.0% 24.1% CORE EBIT Margin 19.0% 15.5% Specialty Ingredients CHF mn HY 2016 HY 2015 % YoY Sales 1,165 1, CORE EBITDA Margin 20.7% 19.2% CORE EBIT Margin 16.7% 15.2% % 24.8 % % % % 25% 20% 15% 10% 5% 0% % 18.2% 19.2% % 30% 25% 20% 15% 10% 5% 0% CORE EBITDA (CHF million) CORE EBITDA margin (%) CORE EBITDA (CHF million) CORE EBITDA margin (%) Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

7 Patented Generic Over-the-Counter (OTC) Products Preventive Healthcare Products Well-Being Products Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

8 and Its Overall Customer Range Patented e.g.: Roche Novartis BMS Astra Zeneca Alexion Bayer Healthcare GlaxoSmithKline Biotech and Research Start-ups etc... Generic e.g.: Novartis Sandoz Teva Pfizer - Hospira Sun Pharmaceuticals Aspen Dr. Reddy s etc... Over-the-Counter (OTC) Products e.g.: Bayer Healthcare Reckitt Benckiser GlaxoSmithKline Ratiopharm Hexal Novartis etc... Preventive Healthcare Products e.g.: L Oreal Bayer Healthcare Nestlé Reckitt Benckiser Henkel etc... e.g.: L Oreal P&G Shiseido Beiersdorf Estée Lauder Henkel Nestlé Unilever etc... Well-Being Products Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

9 Lonza s Business Areas Mammalian & Small Molecules & Personal Care Nutrition and Functional Food Microbial & Emerging Technologies Bioscience Solutions Hygiene Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October 2016 Shape sizes not representative 9

10 Strengthening Lonza s Offering and Adding Puzzle Pieces Endotoxin Detection Mammalian HAPI Viral Therapy Analytical Services Emollients Hair Care Formulation Cell Line Construction Chemical Chemical Bioconjugation Process Cell Culture Products Skin Care Formulation Hair Care Actives Food Emulsifiers Cell Therapy Stability Testing Media Human Food Preservation Personal Care Preservation Home Care Microbial Viral Therapy Cell Banking Parenteral Drug Product Delivery Vitamins Surfactants Primary Cells Transfection Devices / QC Testing Solutions Mammalian Functional Food Actives Skin Care Actives Disinfectants Expression Systems (Licensing) Cytotoxins Cell Therapy Microbial Bioconjugates Electrophoresis Assay Solutions Biocides Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

11 Strengthening Lonza s Offering and Adding Puzzle Pieces Endotoxin Detection Mammalian HAPI Viral Therapy Analytical Services Emollients Hair Care Formulation Cell Line Construction Chemical Chemical Bioconjugation Process Cell Culture Products Skin Care Formulation Hair Care Actives Food Emulsifiers Cell Therapy Stability Testing Media Human Food Preservation Personal Care Preservation Home Care Microbial Viral Therapy Cell Banking Parenteral Drug Product Delivery Vitamins Surfactants Primary Cells Transfection Devices / QC Testing Solutions Mammalian Functional Food Actives Skin Care Actives Disinfectants Suite Expression in Portsmouth, Systems NH Cytotoxins (Licensing) under construction Cell Therapy Microbial Bioconjugates Electrophoresis Assay Solutions Biocides Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

12 Strengthening Lonza s Offering and Adding Puzzle Pieces Endotoxin Detection Mammalian HAPI Viral Therapy Analytical Services Emollients Hair Care Formulation Cell Line Construction Chemical Chemical Bioconjugation Process Cell Culture Products Skin Care Formulation Hair Care Actives Food Emulsifiers Cell Therapy Stability Testing Media Human Food Preservation Personal Care Preservation Home Care Microbial Viral Therapy Operational in Q4 Cell 2016 Banking Parenteral Drug Product Delivery Vitamins Surfactants Primary Cells Transfection Devices / QC Testing Solutions Mammalian Functional Food Actives Skin Care Actives Disinfectants Expression Systems (Licensing) Cytotoxins Cell Therapy Microbial Bioconjugates Electrophoresis Assay Solutions Biocides Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

13 Strengthening Lonza s Offering and Adding Puzzle Pieces Endotoxin Detection Mammalian HAPI Viral Therapy Analytical Services Emollients Hair Care Formulation Cell Line Construction Chemical Chemical Bioconjugation Process Cell Culture Products Skin Care Formulation Hair Care Actives Food Emulsifiers Cell Therapy Stability Testing Media Human Food Preservation Personal Care Preservation Home Care Microbial Viral Therapy Cell Banking Parenteral Drug Product Delivery Vitamins Surfactants Primary Cells Transfection Devices / QC Testing Solutions Operational in Q Mammalian Functional Functional Food Food Actives Actives Skin Care Actives Disinfectants Expression Systems (Licensing) Cytotoxins Cell Therapy Microbial Bioconjugates Electrophoresis Assay Solutions Biocides Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

14 Overlap with Agro Feed Agro Feed Product group, technology and asset overlap Mammalian & Small Molecules Personal Care Nutrition and Functional Food Microbial & Emerging Technologies Bioscience Solutions Hygiene Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October 2016 Shape sizes not representative 14

15 Overlap with Coatings & Composites Coatings & Composites Asset and product group overlap Mammalian & Small Molecules Personal Care Nutrition and Functional Food Microbial & Emerging Technologies Bioscience Solutions Hygiene Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October 2016 Shape sizes not representative 15

16 Overlap with Water Treatment Mammalian & Small Molecules Personal Care Nutrition and Functional Food Microbial & Emerging Technologies Bioscience Solutions Hygiene Water Treatment Market and technology overlap (especially industrial) Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October 2016 Shape sizes not representative 16

17 Healthcare Continuum Conclusions Capital Markets Day Introduction to the Healthcare Continuum, Richard Ridinger, 27 October

18 Capital Markets Day Closing Remarks Richard Ridinger, CEO Capital Markets Day Closing Remarks, Richard Ridinger, 27 October 2016

19 Patented Generic Over-the-Counter (OTC) Products Preventive Healthcare Products Well-Being Products Capital Markets Day Closing Remarks, Richard Ridinger, 27 October

20 Conclusions Healthcare Continuum is investment focus KPI improvements for both segments are expected All businesses will contribute to value creation Sound options for sustainable strong organic growth Entering the next cycle Lonza Today Capital Markets Day Closing Remarks, Richard Ridinger, 27 October

21 Thank you Capital Markets Day Closing Remarks, Richard Ridinger, 27 October