CORE Results

Definition

Lonza believes that disclosing CORE results for the Group’s performance enhances the financial markets’ understanding of our company because the CORE results enable better comparison across years.

Therefore, the CORE results exclude exceptional items such as restructuring charges, acquisition-related costs, environmental-remediation costs, impairments and amortization of acquisition-related intangible assets, which can differ significantly from year to year. For this same reason, Lonza uses these CORE results in addition to IFRS as important factors in internally assessing the Group’s performance.

 

 

 

 


 

Reconciliation of IFRS Results to CORE Results 2016

million CHF IFRS results Amortization
of intangible
assets from acquisitions
Impairments Reversal
of impairments
Restructuring costs /
 income
Other  3 Results from associates CORE results 1
                 
Sales 4,132 0 0 0 0 0 0 4,132
Cost of goods sold (2,731) 0 15 (2) 12 29 0 (2,677)
Gross profit 1,401 0 15 (2) 12 29 0 1,455
Marketing and distribution (281) 0 0 0 0 0 0 (281)
Research and development  (84) 0 0 0 0 0 0 (84)
Administration and general overheads  (478) 40 0 0 2 13 0 (423)
Other operating income 32 0 0 0 0 0 0 32
Other operating expenses (104) 0 42 0 13 1 0 (48)
Result from operating activities (EBIT) 486 40 57 (2) 27 43 0 651
Financial income 2 0 0 0 0 0 0 2
Financial expenses (114) 0 0 0 0 10 0 (104)
Net financing costs (112) 0 0 0 0 10 0 (102)
Share of loss of associates / joint ventures (1) 0 0 0 0 0 1 0
Profit before income taxes 373 40 57 (2) 27 53 1 549
Income taxes 2 (72) (8) (11) 0 (5) (10) 0 (106)
Profit for the period, attributable to the equity holders of the parent 301 32 46 (2) 22 43 1 443
                 
Number of shares basic 52,538,465             52,538,465
Number of shares diluted 52,865,872             52,865,872
Basic earnings per share 5.73             8.43
Diluted earnings per share 5.69             8.38

Reconciliation of IFRS Results to CORE Results 2015

million CHF IFRS results Amortization
of intangible
assets from acquisitions
Impairments Reversal
of impairments
Restructuring costs /
income
Other  3 Results from associates CORE results  1
                 
Sales 3,803 0 0 0 0 0 0 3,803
Cost of goods sold (2,704) 0 53 (1) 9 1 0 (2,642)
Gross profit 1,099 0 53 (1) 9 1 0 1,161
Marketing and distribution (239) 0 0 0 0 (2) 0 (241)
Research and development  (103) 0 0 0 0 (1) 0 (104)
Administration and general overheads  (313) 31 0 0 0 (8) 0 (290)
Other operating income 55 0 0 0 (1) 0 0 54
Other operating expenses (71) 0 0 0 4 11 0 (56)
Result from operating activities (EBIT) 428 31 53 (1) 12 1 0 524
Financial income 4 0 0 0 0 0 0 4
Financial expenses (89) 0 0 0 0 0 0 (89)
Net financing costs (85) 0 0 0 0 0 0 (85)
Share of loss of associates / joint ventures (2) 0 0 0 0 0 2 0
Profit before income taxes 341 31 53 (1) 12 1 2 439
Income taxes 2 (64) (6) (10) 0 (3) 0 0 (83)
Profit for the period, attributable to the equity holders of the parent 277 25 43 (1) 9 1 2 356
                 
Number of shares basic 52,268,315             52,268,315
Number of shares diluted 52,693,239             52,693,239
Basic earnings per share 5.30             6.81
Diluted earnings per share 5.26             6.76