CORE Results Audited

 

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

CORE results exclude exceptional expenses and income related to e.g. restructuring, environmental-remediation, acquisitions and divestitures, 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
Income/expense from acquisition and divestures Environment-related expenses Other CORE results  1
                   
Sales 4,132 0 0 0 0 0 0 0 4,132
Cost of goods sold (2,731) 0 15 (2) 12 3 26 0 (2,677)
Gross profit 1,401 0 15 (2) 12 3 26 0 1,455
Marketing and distribution (281) 0 0 0 0 0 0 0 (281)
Research and development (84) 0 0 0 0 0 0 0 (84)
Administration and general overheads (478) 40 0 0 2 13 0 0 (423)
Other operating income 32 0 0 0 0 0 0 0 32
Other operating expenses (104) 0 42 0 13 1 0 0 (48)
Result from operating activities (EBIT) 486 40 57 (2) 27 17 26 0 651
Financial income 2 0 0 0 0 0 0 0 2
Financial expenses (114) 0 0 0 0 10 0 0 (104)
Net financing costs (112) 0 0 0 0 10 0 0 (102)
Share of loss of associates / joint ventures (1) 0 0 0 0 0 0 1 0
Profit before income taxes 373 40 57 (2) 27 27 26 1 549
Income taxes 2 (72) (8) (11) 0 (5) (5) (5) 0 (106)
Profit for the period, attributable to the equity holders of the parent 301 32 46 (2) 22 22 21 1 443
                   
Number of shares basic 56,719,245               56,719,245
Number of shares diluted 57,046,652               57,046,652
Basic earnings per share 3 5.31               7.81
Diluted earnings per share 3 5.28               7.77

Reconciliation of EBITDA to CORE EDITDA

million CHF 2017 2016
     
Earnings before interests, taxes and depreciation (EBITDA) 1,153 848
Restructuring costs / income 13 27
Income / expense resulting from acquisition and divestitures 141 17
Environment-related expenses 32 26
Gain from Guangzhou (CN) land transaction (74) 0
CORE EBITDA 1,265 918