drug delivery and material science solutions
TRANSCRIPT
Drug Delivery and Material Science Solutions
Forward Looking Statements & Non-GAAP Financial Measures
This presentation includes forward-looking statements. Forward-looking statements are made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are
based on management’s beliefs and assumptions in light of information currently available to management. Accordingly, the
Company’s actual results may differ materially from those expressed or implied in such forward-looking statements due to
known or unknown risks and uncertainties that exist in the Company’s operations and business environment, including,
among other factors, those described in documents filed by the Company with the Securities and Exchange Commission,
specifically its Form 10-Ks and 10-Qs. The Company does not assume any obligation to update, amend or clarify such
statements to reflect new events, information or circumstances after the date of this presentation.
During the course of this presentation, certain non-GAAP financial information will be presented.
A reconciliation of those numbers to GAAP financial measures is available on the company’s website at www.aptar.com on
the Investor’s page (click on Events & Presentations / Presentations).
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Overview
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SALES BY REGION
55%32%
7%
6%
ATTRACTIVE END MARKETS
SERVING BEST KNOWN GLOBAL &
LOCAL BRANDS
DIVERSIFIED PORTFOLIO
RESEARCH AND IP-DRIVEN
Company Snapshot
1,250Patent Families
Approximately3%R & D
Of Annual Revenue
THE LEADER IN CONSUMER
DISPENSING AND DRUG DELIVERY
75-year history of innovation
Providing brand differentiation and
consumer / patient convenience
Consistent long-term focus, stability
and financial results
“We transform ideas into solutions that transform lives.”
$2.9 bil*
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*2019 Annual Revenue
Relying on Aptar Solutions Through the Pandemic
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Rescue drugs and
treatments
Preventive medicines
and diagnostics
Pharma
Beauty + Home
Food + Beverage
Vaccines and
therapeutics
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Synergistic Benefits of Shared Technology, Infrastructure and Material Science Across Three Reporting Segments
6* - LTM = Last twelve months ending September 30, 2020; the EBITDA %’s of LTM values are calculated on total Segment Adjusted EBITDA and exclude Corporate Expenses
Common Technologies and Solutions… …Serving Three Market-facing Reporting Segments
Core Manufacturing Technologies1
Best-in-Class Products and Services2
Aimed at Global Megatrends3
Precision Injection Molding
High-Speed Assembly
Metal Processing + Decorating
Material Science
Dispensing and Delivery
Sealing
Active Solutions
✓ Sustainability
✓ Health + Wellness
✓ Connectivity
✓ Urbanization
✓ Changing Demographics
✓ e-Commerce/Individualization
% of Total LTM* Sales % of Total LTM* EBITDA
41%
45%
14%
68%
21%
11%
35%
EBITDA
Margin
10%
EBITDA
Margin
17%
EBITDA
Margin
$1.2 bil
$1.3 bil
$0.4 bil
$418 mil
$131 mil
$65 mil
Best in Class Healthcare Businesses – Aptar Pharma
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$1.2BSales*
35%Adj. EBITDA Margin*
7.5%10-year CAGR
Organic Sales**
* - LTM = Last twelve months ending September 30, 2020; ** - 2009 - 2019
14GMP Facilities
(U.S., Europe, Asia and Latin
America)
• Global leader in proprietary niche drug delivery devices:
– nasal, pulmonary and ophthalmic
• Consistent long-term performance
– organic revenue growth 6-10% per year
– EBITDA margins of 32-36%
• Focused on chronic disease management and
emergency response
• Focused on key indications: allergic rhinitis, congestion,
asthma, COPD, diabetes, CNS and pain
• Over 3 decades of experience working with regulators
• Growing position in elastomeric stoppers and
components for syringes and injection devices
• Growing material science solutions group
750Patent Families
Fast Growing, High-margin Drug Delivery Franchise
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Aptar Pharma Snapshot
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SALES BY REGION (2020)
66%29%
2%
3%
NICHE MARKETS (2020)
45%
23%
20%
12% Prescription
Consumer HealthCare
Injectables
Active MaterialSolutions
CUSTOMERS (Approx. 1500)
INNOVATIVE SOLUTIONS
IP / PATENTS
DECADES OF PATIENT /
CONSUMER EXPERIENCE
8 BillionOver
Solutions per Year
Branded Rx / Generics / OTC
750Patent Families
Not a Contract Manufacturer
Managing close to
Successful long-term track record with over
150 approved NDAs, ANDAs and INDs in
past five years
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Leader in Delivery Systems for Focused Therapies
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Nasal Delivery Solutions Eye Care Delivery Solutions Pulmonary Delivery Solutions
Global leader in nasal devices for Allergic Rhinitis,
Aptar Pharma delivers across a wide spectrum of
nasal needs, from respiratory and allergy
treatments to vaccines and crisis medications.
Global leader in pressurized metered dose inhaler
(pMDI) valves. We address the Asthma and COPD
therapy markets with a broad range of devices
including pMDI valves, Dry Powder Inhalers
(DPIs), and electronic and connected devices.
Our Ophthalmic Squeeze Dispenser is the
leading device for preservative-free multidose
prescription medications and OTC eye care
products with over 250 references on the market.
Growth from Conversion to Nasal Format
Naloxone HCl Nasal Spray used for the emergency
treatment of a known or suspected opioid
overdose.
Rescue treatments delivered with our nasal
devices can be administered quickly and easily
without the need for professional training.
Pharmaceutical and biotech companies continue to
seek better ways to administer their medicines.
Emergent Bio’s NARCAN®
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Aptar’s Unidose Nasal Spray Device
Other CNS Drugs Recently Repurposed for New Delivery Formats
Bidose Nasal Spray Device Unidose Nasal Spray Devices
Protective Active Container and
Unidose Nasal Powder Device
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Anti-depressant Therapy Hypoglycemic Crisis Treatment Epilepsy Seizure Treatments
Growing in the Injectables Market
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Proven injectables partner
• 550+ customers in 70+ countries
worldwide
• Working with all of the top 10
Pharma players in injectables
• 70 of the 100 top molecules,
mostly life saving treatments
COVID-19 Opportunities
• > 100 injectable vaccines /
antiviral treatments being explored
• Increase in emergency / antibiotics
treatments
• QuickStart™ turnkey solution for
clinical development
Added-value solutions to meet most
stringent market requirements
around the development of complex
& highly sensitive drug formulations
• PremiumCoat™
• Premium Fill®
• Premium Vision™
Global manufacturing network
expansion to meet fast
growing demand
Expanding the Moat with Broad Pharma Services Platform
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Support through every step of the drug development journey
Guiding you through every step of drug product development
Device &
formulation
development
Clinical trialsRegulatory
filings
Market launch &
post-launch
A global leader in
patient onboarding
and adherence
programs.
A leading provider of
orally inhaled &
nasal drug product
design & development
services.
A full-service cGMP
lab specializing in
analytical testing of
drug delivery
systems.
A full-service cGMP lab
providing industry-
leading particulate
detection & predictive
analytical services.
A global provider of
innovative
drug delivery
systems and service
solutions.
Aptar Pharma Services
Digital Integrator with Connected Devices as Foundation
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Supports the digital therapeutic ecosystem
Guiding you through every step of drug product development
Device & app
development
Clinical trial
adherence
monitoring
Patient
adherence
monitoring
Digital analytics
Patient
management
software for
healthcare providers
(India)
A leading provider of
digital services to
asthma/COPD
patients and doctors
Sensor technology to
monitor patient
adherence in
Eyecare
Connected devices,
data platform and
patient management
services (China)
A global provider of
innovative electronic
drug delivery
systems and digital
services
Aptar Pharma Digital
Aptar Pharma
YTD Sept. 2020 Results
(1) Excludes acquisitions and currency effects. (2) Adjusted EBITDA (earnings before net interest, taxes,
depreciation and amortization) excludes restructuring costs,
acquisition costs, non-recurring purchase accounting adjustments.
Metric3 Year
Average
YTD
2020
Long-term
Target
Core sales growth1 10% 8% 6-10%
Adj. EBITDA2 margin 35% 36% 32-36%
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$824
$914
$0
$200
$400
$600
$800
$1,000
YTD 2019 YTD 2020
$ in m
illio
ns
Sales
Reported
+11%
Core
8%
Acquisitions
3%
Currency
Effects
0%
36% 36%
0%
10%
20%
30%
40%
YTD 2019 YTD 2020
Adjusted EBITDA(2) Margin%
Active Material Solutions
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Proprietary Active Polymer Technology
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• Maintains integrity of the contents inside
• Extends shelf-life
• Controls moisture and reduces oxygen
• Removes odor
Glucose Test
Strips
Activ-Blister™ - Solution for an HIV Prevention Medicine
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EUA Filed April 2020: Introducing ActivShield™ Solution for Virus Mitigation on N95 Masks
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ActivShield™ is a safe and convenient way to deliver antimicrobial & antiviral treatment of N95 masks on site.
Company Financials
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YTD 2020 Recap
• Impact of COVID-19 tracking with our
expectations from earlier this year: Q2 was
low-point, markets generally performing as
anticipated, gradual recovery in process
• Best of breed Pharma business continued to
grow device and component sales in each
market over very strong prior year
• Strong growth in Q2 and Q3 sales to the
Personal Care market partially offsetting
decreased sales to the Beauty Market
• Good growth in sales to the Food market
offsetting decreased sales to the Beverage
market
• Recent acquisitions performing well including
FusionPKG and Noble International
• Generating strong level of cash flow above
prior year levels
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Aptar Pharma Advertisement-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Q1 Q2 Q3
Sales Growth by Quarter 2020
Reported Core
Anticipated Pandemic Impact 2020
Nine Months Year-to-Date 2020 Company Reported Results
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YTD Highlights
• Pharma segment continues to perform
well through the first nine months of the
year with growth over a very strong
period a year ago
• Beauty + Home and Food + Beverage
segments experienced a more difficult
first nine months due to the impacts of
COVID-19
• Progressive signs of improvement for
Beauty + Home and positive results for
Food + Beverage as we moved further
into the year
• Pleased with the performance of our
recent acquisitions, in particular
FusionPKG and Noble
-2%Core Sales
Growth*
-1%Currency
Effects
+3%Acquisitions
29%YTD 2019
Reported
Effective Tax
Rate
29%YTD 2020
Reported
Effective Tax
Rate
$2,188 $2,180
$0
$500
$1,000
$1,500
$2,000
$2,500
YTD 2019 YTD 2020
Reported YTD Sales(in millions $)
0%
* See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures.
Adjustments:
• 2019: Restructuring initiatives of $17.3 mil;
transaction costs related to acquisitions of $1.8 mil
• 2020: Restructuring initiatives of $15.6 mil;
Transaction costs related to acquisitions of $4.8
mil; Purchase accounting adjustments of $1.3 mil
* See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures.
Nine Months Year-to-Date 2020 Adjusted EPS and Adjusted EBITDA
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29%YTD 2019Effective Tax
Rate Adjusted
Earnings*
28%YTD 2020Effective Tax
Rate Adjusted
Earnings*
YTD Adjusted EPS and
Adjusted EBITDA Highlights
• Strong Pharma results able to
compensate for COVID-related
shortfalls, especially within our
beauty and beverage applications
• Realizing temporary operating
inefficiencies in order to maintain
critical supply of product during
COVID
$461 $437
$0
$100,000
$200,000
$300,000
$400,000
$500,000
YTD 2019 YTD 2020
Adjusted YTD EBITDA(in millions $)
-5%$3.15 $2.72
$-
$1.00
$2.00
$3.00
$4.00
YTD 2019 YTD 2020
Adjusted YTD EPS*
-14%
Consolidated Financial Targets
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Metric
3 Year
Average 2019 Q3 YTD 2020 Long-term Target
Core sales growth1 5% 3% -2% 4-7%
Adj. EBITDA2 /Sales % 20% 21% 20% 20-22%
ROIC3 13% 11% 10% 13-15%
Dividend Payout Ratio 36% 36% 40% 30-40%
Leverage Ratio ≈ 1.7X ≈ 1.7X ≈ 1.8X 1-3X
1 – Excludes acquisitions and currency effects.
2 – Adjusted EBITDA (earnings before net interest, taxes, depreciation and amortization) excludes restructuring costs, acquisition costs, non-recurring purchase accounting
adjustments.
3 – Return on invested capital = adjusted earnings before net interest and taxes, less tax effect / average capital (average of beginning of year and end of year capital) [capital =
equity plus debt less cash].
4 – Cash dividends paid / adjusted earnings per share.
Key Takeaways – Aptar Pharma
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✓Unique niche market
✓Defendable leading positions
✓Decades of experience in the
regulatory space
✓Proprietary devices and
material science (Aptar IP)
✓Growing our moat with
expanded services and
digital platforms
✓Consistent, best in class
growth and margins
2012 2013 2014 2015 2016 2017 2018 2019
Sales ($ mil) $589 $709 $751 $712 $741 $806 $955 $1,091
EBITDA Margin 30.7% 32.4% 32.8% 34.9% 35.0% 34.2% 36.0% 35.5%
30%
31%
32%
33%
34%
35%
36%
37%
$-
$200
$400
$600
$800
$1,000
$1,200
Aptar Pharma Sales and EBITDA Margin
Long-term Compounding Growth Story
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✓Diversified model serving
attractive end-markets
✓Best in class healthcare franchise
✓Leader in beauty and food
dispensing solutions
✓ Innovation and IP driven portfolio
✓Leveraging synergies, including
technologies, across each business
✓Consistently strong balance sheet
✓ Investing in our business for future
growth
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+4.5%CAGR
Core Sales
+8%CAGR
Adjusted
EPS
+9%CAGR
Dividend
• average yield over 10
years = 1.6%
• 27 consecutive years
of paying increased
annual dividends
Contact:
Matt DellaMariaSVP, Investor Relations & Communications
Phone: 815-479-5530Email: [email protected]
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“We transform ideas into solutions that transform lives.”