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Lonza Publishes IFRS 15 Adoption and Pro-Forma Numbers for Full-Year 2017 for Its Continuing Operations, Excluding Water Care Business
Impact from Announced Divestment of Water Care Business
On 1 November 2018, Lonza // http://r3.newsbox.ch/d551/sh/rd29737/p4386/c2610/2018-11-01-06-00-English.aspx announced that it entered into a definitive agreement with Platinum Equity to acquire Lonza's Water Care business and operations. The agreement is expected to close in the first quarter of 2019, subject to customary closing conditions. Consequently, Water Care will be classified as discontinued operations and as assets held for sale in accordance with IFRS 5, “Non-Current Assets Held for Sale and Discontinued Operations,” in the Full-Year 2018 results, expected to be published on 30 January 2019.
The planned divestment of the Water Care business and its classification as discontinued operations has an impact on Lonza Group and its Specialty Ingredients segment only. The Pharma & Biotech segment is not affected.
Impact from IFRS 15 Adoption on 2017 Comparable Information
On 1 January 2018, the new, comprehensive revenue recognition standard, IFRS 15, "Revenue from Contracts with Customers," took effect. Lonza has applied the full retrospective methodology in adopting IFRS 15 to enhance comparability.
As a result, Lonza is publishing restated financial results for its Full-Year 2017 results in accordance with IFRS 15. The IFRS 15 adoption only had an impact on Lonza's Pharma & Biotech segment. Further information has previously been provided in the online // http://r3.newsbox.ch/d551/sh/rd29738/p4386/c2610/note-1-account-principles2 Lonza Annual Report 2017 and in the // http://r3.newsbox.ch/d551/sh/rd29739/p4386/c2610/2018_Half_Year_Results_EN.ashx?la=en Half-Year Results 2018 report publication.
Introduction of Lonza Specialty Ingredients Divisional Reporting
On 1 January 2018, the Specialty Ingredients segment began operating in three distinct businesses: a Consumer Health division, a Consumer & Resources Protection division and a Water Care business unit. As of 1 November 2018, with the signing of the strategic agreement to divest the Water Care business to Platinum Equity, Water Care is being reported as discontinued operations for all periods presented.
With the publication of the Half-Year 2018 results, Lonza provided sales and CORE EBITDA financial key performance indicators (KPI) for its new reporting structure in Specialty Ingredients. Historical data for the full-year 2017 is now being disclosed in order to enable comparative analyses. Further information has previously been provided in the // http://r3.newsbox.ch/d551/sh/rd29739/p4386/c2610/2018_Half_Year_Results_EN.ashx?la=en Half-Year Results 2018 report.
Impact from Capsugel Acquisiton on Lonza Comparable Reporting for Full-Year 2017
Lonza provides pro-forma Full-Year 2017 results (reported Lonza Full-Year 2017 financial results including Capsugel 2017 financial results from 1 January 2017) for Lonza’s KPIs of Sales, CORE EBITDA and CORE EBIT. These pro-forma KPIs reflect the acquisition of Capsugel as if it would have occurred on 1 January 2017, although the effective closing was on 5 July 2017. During 2018 Capsugel has been fully integrated into Lonza's two operating segments, Pharma & Biotech and Specialty Ingredients (Consumer Health division). Further information has previously been provided in the // http://r3.newsbox.ch/d551/sh/rd29739/p4386/c2610/2018_Half_Year_Results_EN.ashx?la=en Half-Year Results 2018 report.
The following tables summarize the changes mentioned above and provide comparable information for Full-Year 2017 reporting.
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 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 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 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.
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