Company
Letter to Stakeholders
Highlights of the Business Year 2017
Financial Highlights
Value Creation Along and Beyond the Healthcare Continuum
Serving Along and Beyond the Healthcare Continuum
Becoming a Leading Integrated Service Provider
Highlighting Our Initiatives in 2017
Showing How We Create Value
Meeting Global Megatrends
Structuring Our Businesses
Capitalizing on Cross-Business Synergies
Demonstrating a Spirit of Innovation
Investing in Our People
Management and Company Structure
Corporate Governance and Remuneration Policy
Corporate Responsibility Insights
Investing in Environment, Health and Safety
Creating Value Through Responsible Sourcing
Quality Initiatives
Investing in Our Communities
Investor Information
Segments
Pharma&Biotech
Mammalian Manufacturing
Highlights 2017
Innovation and Initiatives
Chemical and Microbial Manufacturing
Highlights 2017
Innovation and Initiatives
Clinical Development and Manufacturing
Highlights 2017
Innovation and Initiatives
Emerging Technologies
Highlights 2017
Innovation and Initiatives
Bioscience Solutions
Highlights 2017
Innovation and Initiatives
Specialty Ingredients
Consumer Health
Highlights 2017
Innovation and Initiatives
Coatings and Composites
Highlights 2017
Innovation and Initiatives
Agro Ingredients
Highlights 2017
Innovation and Initiatives
Water Care
Highlights 2017
Innovation and Initiatives
Financial Report
Consolidated Balance Sheet
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Note 1 – Account Principles
Note 2 – Operating Segments
Note 3 – Restructuring
Note 4 – Business Combinations and Sale of Businesses
Note 5 – Intangible Assets and Goodwill
Note 6 – Property, Plant and Equipment
Note 7 – Other Non-Current Assets
Note 8 – Investments in Associates and Joint Ventures
Note 9 – Inventories
Note 10 – Development Contracts
Note 11 – Trade Receivables
Note 12 – Other Receivables, Prepaid Expenses and Accrued Income
Note 13 – Cash and Cash Equivalents
Note 14 – Provisions
Note 15 – Net Debt
Note 16 – Other Current Liabilities
Note 17 – Trade Payables
Note 18 – Material and Energy Costs
Note 19 – Personnel Expenses
Note 20 – Other Operating Income and Expenses
Note 21 – Financial Results
Note 22 – Taxes
Note 23 – Research and Development Costs
Note 24 – Employee Benefits Liabilities
Note 25 – Share-Based Payments
Note 26 – Changes in Shares and Share Capital Movements
Note 27 – Earnings Per Share
Note 28 – Related Parties
Note 29 – Financial Risk Management
Note 30 – Share Ownership of the Members of the Board of Directors and the Executive Committee
Note 31 – Enterprise Risk Management
Note 32 – Events After Balance Sheet Date
Note 33 – Principal Subsidiaries and Joint Ventures
Report of the Statutory Auditor
Financial Statements of Lonza Group Ltd, Basel
Balance Sheet Lonza Group Ltd, Basel
Income Statement Lonza Group Ltd, Basel
Notes to the Financial Statements Lonza Group Ltd, Basel
Proposal of the Board of Directors
Report of the Statutory Auditor
Supplementary Financial Information
Free Cash Flow
Statement of Value Added
CORE Results
Remuneration Report
Compensation and Performance Overview 2017
Compensation-Setting Process
Compensation Components
Compensation of the Board of Directors
Compensation of the Executive Committee
Principles
Remuneration Components
Aggregate Compensation of the Executive Committee
Highest Compensation Paid to a Member of the Executive Committee
Compensation to Departing Members of the Executive Committee
Details of Incentive Plans
Compensation in Case of Termination
Share Ownership of the Members of the Board of Directors and the Executive Committee
Report of the Statutory Auditor
Corporate Governance Report
Group Structure and Shareholders
Capital Structure
Board of Directors
Rolf Soiron
Patrick Aebischer
Werner Bauer
Albert M. Baehny
Jean-Daniel Gerber
Christoph Mäder
Barbara Richmond
Margot Scheltema
Jürgen Steinemann
Antonio Trius
Executive Committee
Richard Ridinger
Sven Abend
Marc Funk
Fridtjof Helemann
Rodolfo Savitzky
Compensation, Shareholdings and Loans
Shareholders’ Participation Rights
Changes of Control and Defense Measures
Auditors
Information Policy and Key Reporting Dates
Note 18 – Material and Energy Costs
million CHF
2017
2016
Material costs
1,587
1,386
Energy costs
88
69
Total
1,675
1,455
Consolidated Balance Sheet
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Note 1 – Account Principles
Note 2 – Operating Segments
Note 3 – Restructuring
Note 4 – Business Combinations and Sale of Businesses
Note 5 – Intangible Assets and Goodwill
Note 6 – Property, Plant and Equipment
Note 7 – Other Non-Current Assets
Note 8 – Investments in Associates and Joint Ventures
Note 9 – Inventories
Note 10 – Development Contracts
Note 11 – Trade Receivables
Note 12 – Other Receivables, Prepaid Expenses and Accrued Income
Note 13 – Cash and Cash Equivalents
Note 14 – Provisions
Note 15 – Net Debt
Note 16 – Other Current Liabilities
Note 17 – Trade Payables
Note 18 – Material and Energy Costs
Note 19 – Personnel Expenses
Note 20 – Other Operating Income and Expenses
Note 21 – Financial Results
Note 22 – Taxes
Note 23 – Research and Development Costs
Note 24 – Employee Benefits Liabilities
Note 25 – Share-Based Payments
Note 26 – Changes in Shares and Share Capital Movements
Note 27 – Earnings Per Share
Note 28 – Related Parties
Note 29 – Financial Risk Management
Note 30 – Share Ownership of the Members of the Board of Directors and the Executive Committee
Note 31 – Enterprise Risk Management
Note 32 – Events After Balance Sheet Date
Note 33 – Principal Subsidiaries and Joint Ventures
Report of the Statutory Auditor
Financial Statements of Lonza Group Ltd, Basel
Supplementary Financial Information