Highlights 2017 Audited

In the reporting year, we renamed the business unit from “Water Treatment” to “Water Care” to reflect the group's alignment with Lonza’s commitment to consumer safety and our world-class product stewardship.

Unfavorable seasonal effects and a competitive market environment affected Lonza's Water Care business as expected. Commercial initiatives have been established to strengthen both the residential and the industrial water businesses.

Within the Residential Water group, our Mass channel continues to build upon the solid foundation of our flagship brand, HTH®. In addition to our high-quality, trusted products, we are focused on improving the customer experience. Using the latest digital-marketing practices, we can engage with consumers along their buying journey and deliver targeted messages and education for helping to improve the in-store and online experience. Our Mass team also invested in rebuilding our sales organization with talent that introduced the next level of category management into our market.

The ProDealer channel has a rich history of innovating in the pool and spa water-care product arena. Anchored by our cornerstone brands: poolife®, Leisure Time®, BAQUACIL®, BAQUA Spa® and GLB®, we continue to introduce differentiated, proprietary formulas that pool and spa owners trust to keep their water clean and clear. Our ProDealer channel continued to expand our market share in 2017, against a background of declining demand overall and a highly competitive market environment.

In 2017 our ICMS business recorded a solid year. ICMS invested in innovative green technology for drinking water applications to offer sustainable solutions in accordance with growing customer demands and regulatory requirements. We have made good progress in reducing the exposure to the more weather-dependent conditions in the Residential Water business by focusing more on the less-seasonal ICMS business.

For example, our calcium hypochlorite sanitization solutions, which are delivered via proprietary feed technologies, are present on all continents. Our Dry Tec® and Frexus™ branded disinfectants combat bacteria in the food and beverage industry. These solutions are used by some of the largest bottling companies in the world – in protein-producing facilities and for post-harvest washing facilities for all kinds of fresh products.

We also continued to demonstrate our excellent value proposition for drinking water disinfection in island communities, such as the Pacific Islands and the Caribbean, with new market entries and expansion of the range of solutions provided. Offering market-specific products that fulfill complex needs has allowed Lonza’s ICMS business to expand into niche markets and showcase the unique features and benefits of our portfolio of products and services.