LSI Segment Divestment slide image

LSI Segment Divestment

Market Capsules & Health Ingredients (CHI) Lonza Operations Nutraceutical market • Continued growth driven by end- consumer demand for health ingredients and supplements. This trend was accelerated in 2020 by the COVID-19 pandemic Pharmaceutical market Flat to negative growth driven by lower use of prescription drugs as patients deferred elective medical treatments due to COVID-19 Partially offset by increased demand for selected OTC medications Global CHI network maintained essential operations in all geographies, serving existing customers with minimal disruption High capacity utilization across capsule product portfolio led to increased lead times for selected capsule products Capacity investment approved in 2020, increasing total production capacity by 15% by the end of 2021 Financial Performance¹ High single-digit sales growth in 2020 and stable margin • Business growth driven by nutritional capsules and ingredients Pharmaceutical capsules sales growth was flat to low single-digits Low single-digit growth anticipated in H1 2021, due to expected capacity constraints and increased customers' inventory 1 Comparison versus 2019 at a constant exchange rate (CER) 27
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