龙沙集团（LONN）：自2025年4月1日起实施新运营模式

Implementing new operatingmodeleffective1 Apr-25 Reflecting forecasts under the new business platforms and FXupdate, we maintain our PT CHF 670. LONN.S/LONN SWOVERWEIGHTUnchanged European Pharmaceuticals& Life SciencesNEUTRALUnchanged On 27 May, Lonza announced implementation of its simplified and streamlined operatingmodeleffective1-Apr'25, previously guided for under its new One Lonza vision and strategy inDec-24. Following this announcement, in this note, we reflect our recently updated forecastsunder the newly formed business platforms and update FX. For comparison with its 1H25 resultsscheduled to be published on 23 Jul-25, the company also re-classified 1H24 and FY24financials, CORE EBITDA and margin under the three new CDMO Platforms and guides to publishthe detailed re-stated financials for FY24 in Jun-25. Price TargetCHF 670.00Unchanged Market Cap (CHF mn)40966Shares Outstanding (mn)72.23Free Float (%)96.9552 Wk Avg Daily Volume (mn)0.2Dividend Yield (%)0.71Return on Equity TTM (%)6.77Current BVPS (CHF)132.06Source: Bloomberg The newofferingsnow comprise three newly formed CDMO Business Platforms: •Integrated Biologics- to include Mammalian and Drug Product Services, alongside theLicensing business,•Advanced Synthesis- includes former Small Molecules Division and Bioconjugates and•Specialized Modalities- to include Cell & Gene technologies, mRNA, Microbial technologiesand Bioscience products. Price PerformanceExchange-SWX52 Week rangeCHF 613.86-466.18 As a reminder, LONN management intends to divest the more commoditised and slowergrowthCapsules & Health Ingredients(C&HI) business, reported as non-core, and willcontinue to operate in its existing structure. As we recently discussed with CFO Philippe Deecke(see:Feedback from CFO fireside; 1Q25 update,13/05/25), LONN remains committed to exit thisdivision at the appropriate time, which is fully on track and reiterates the division is set to returnto growth this year. Model updates:We make minor tweaks to our assumed divisional forecasts to align our priorgroup forecasts with the new divisions. As a result of FX changes and these tweaks, ourFY25/26/27 sales and CORE EBITDA forecasts change by -1%/-2%/-2% and 0%/-1%/-2%,respectively. Source: IDCLink to Barclays Live for interactive charting European Pharmaceuticals & LifeSciences Valuation:We maintain ourour PT of CHF 670, driven by our preferred Lonza valuationmethodology of19x EV/NTM EBITDA (inc-C&HI) or 21x EV/NTM EBITDA (exc-CHI). Charles Pitman-King, CFA+44 (0)20 3134 6023charles.pitman-king@barclays.comBarclays, UK Emily Field, CFA+44 (0)20 7773 6263emily.field@barclays.comBarclays, UK Barclays Capital Inc. and/or one of itsaffiliatesdoes and seeks to do business with companiescovered in its research reports. As a result, investors should be aware that the firm may have aconflict of interest that couldaffectthe objectivity of this report. Investors should consider thisreport as only a single factor in making their investment decision. Shirley Chen, PhD+44 (0)20 7773 2109shirley.chen@barclays.comBarclays, UK This research report has been prepared in whole or in part by equity research analysts basedoutside the US who are not registered/qualified as research analysts with FINRA. Please see analyst certifications and important disclosures beginning on page 7.Completed: 27-May-25, 18:13 GMTReleased: 28-May-25, 03:00 GMTRestricted - External Comparative 1H/FY24 Financial Information Previous divisional breakdown •Biologics- Mammalian, Drug Product Services, Bioconjugates, mRNA, Microbial and licensing•Small Molecules- Small Molecules•Cell & Gene Therapy- Cell & Gene Technologies and Bioscience ONE Lonza divisional breakdown Enacting on the Part 1 of LONN's 2024 CMD announced 'Tune the Lonza Engine' strategy (see;Lonza Group AG: Live from Basel; Portfolio optimisation supports low-teens growth,13/12/24),Tuesday's announcements outline the ONE Lonza divisional breakdown. Pursuing asimplification of the business, this reduces from nine business units to three business platforms,to rely on standardized structures and a more flattened organization. This new structure willalso enable LONN to unify each platform under a single go-to-market strategy. •Integrated Biologics- heaeded by Gordon Bates (ex-head of C&HI) °Focused onMammalian and Drug Product Services(incl. licensing),offeringa best-in-class integratedoffering °c50% of CDMO sales, run across nine sites and with 10 growth projects •Advanced Synthesis- headed by Christian Seufert (ex-head of CGT) °Focused onSmall Molecules and Bioconjugates, combining LONN's leading hybridsolutions •Specialized modalities- headed by Daniel Palmacci (ex-head of Small Molecules) FIGURE 1. ONE Lonza updated 1H/FY24 financials Financials and Valuation FIGURE 2. Forecast Changes Source: Barclays Research estimates, Company Filings FIGURE 3. DCF Source: Barclays Research estimates, Company Filings Analyst(s) Certification(s): We, Emily