LonzaGroupTheCreationofaFineChemicalsLeaderInvestorPresentationOctober1999slide2LonzaGroupAgendaandPresentationTeamIIntroductionandOverviewGSergioMarchionne,CEOLonzaGroupIFineChemicalsandSpecialtiesDivisionGR.HelmutRupp,HeadofFineChemicalsandSpecialtiesDivisionIIntermediatesandAdditivesDivisionGAndreadeVirgiliis,HeadofIntermediatesandAdditivesDivisionILonzaGroup-KeyStrategicIssuesGSergioMarchionne,CEOLonzaGroupslide3LonzaGroupItsFormation-Ialgroupshareholdersalgroup(exchemicalsandenergy)algroupshareholdersareofferedsharesinAlcaninexchangefortheirsharesinalgroupAlcan27%minimumof67%ofthesharesofalgroupmustbetenderedtoAlcanLonzaGroupLonzaGroupwillincludeallchemicalandenergyassetsofalgroupnodebtandCHF420millionincash100%slide4LonzaGroupItsFormation-IIITherightsissuesGForeachalgroupshare,shareholderswillreceivearighttopurchaseoneLonzaGroupforCHF10GEachalgroupshareholdersubsequentlyholdoneshareinLonzaGroupandonealgroupsharerepresentingthealuminumandpackagingactivitiesoftheformeralgroupITimetableGalgroupsharesexrightsOctober27,1999GTradingofrightsatSWXOctober27-29,1999GFirsttradingdayLonzaGroupNovember1,1999ILonzaGroupisexpectedtobeincludedintheSMIslide5LonzaGroupOverview-IDivisionalRepartitionof1998Sales(CHF2.2bn)72%24%4%FineChemicalsandSpecialtiesIntermediatesandAdditivesEnergyILonzaGroupcomprisesthreedivisionsGFineChemicalsandSpecialtiesGIntermediates&AdditivesGEnergyIOver60%ofsalesarelifesciencesorientedIOver40%ofsalesarederivedfromexclusivebusinessslide6LonzaGroupOverview-IIISalesinmorethan90countriesI20productionsitesin8countriesGstateoftheartmultipurposecGMPfacilitiesI22servicecentresaroundtheworldI5’651employeesGeographicalAllocationof1998Sales(CHF2.2bn)42%32%16%10%EUNorthAmericaSwitzerlandAsiaslide7LonzaGroupMilestonesintheHistoryofLonzaI1897:LonzaElectricityWorksfoundedinGampel(Switzerland)I1965:CommissioningoftheNaphthacrackerattheValaisworksI1969:ExpansionintotheU.S.;foundationofLonzaInc.I1974:AlusuisseacquiresLonzaAG,creationoftheAlusuisseLonzaGroupI1984:Firstmulti-purposeplantofthenewfinechemicalscomplexinVispI1990/1992:AcquisitionoftwofinechemicalsitesintheU.S.I1992:AcquisitionofBiotecsro,Kourim(CZ)I1996:AcquisitionofCelltechBiologics,Slough(UK)andPortsmouth(NH)I1999:NiacinamideplantinGuangzhou,China,andofIsophthalicAcidplantinSingaporeI1999:FormationofLonzaGroupAGthroughdemergerfromalgroupslide8LonzaGroupHistoricalProFormaFinancialInformationCHFmillion199619971998HY1999Sales1,8712,0992,1531,082EBITDA346354453274EBITDAMargin18.5%16.9%21.0%25.3%EBIT210198276164EBITMargin11.2%9.4%12.8%15.2%NetIncome144130202119NetIncomeMargin7.7%6.2%9.4%11.0%CAPEX23735341094NOA1,4661,7591,9632,160RONOA14.3%11.3%14.1%15.2%Employees5,5665,5265,6515,673slide9LonzaGroupLeadingPositionsinHighGrowth/MarginSegmentsCHFmillionSizeofrelevantmarketsMarketGrowthMarketshareFineChemicalsandSpecialtiesDivisionFineOrganicChemicals1,2002-4%42%ExclusiveFineChemicals17,2507-10%4%Biotechnology750>10%17%Specialties2,5005%12%IntermediatesandAdditivesDivisionIntermediates2,4002-5%12%Additives2505%27%Resins&Compounds7502-3%20%CatalystsandTechnologies603%35%slide10LonzaGroupAFineChemicalsLeaderILonzaGroupisaleadingfinechemicalsandbiotechnologygroupwithGStrongfocusonlifesciencesGLeadershippositioninselectedintermediatesandadditivesGStrongtechnologicalpositionandresearchplatformGFinancialflexibilityGSuperi...
