AptarGroup (ATR) investor relations material

Business overview and strategy

• Pharma segment drives nearly 70% of EBITDA, focusing on proprietary drug delivery devices for chronic diseases, with beauty and closures as additional segments.

• Operates through three reporting segments, leveraging core industrial processes and owning all intellectual property, with a strong regulatory track record.

• Capital is preferentially deployed to pharma due to its high returns and growth, with steady dividend increases for 32 years.

• Over seven years, returned $8B in dividends, $6B in share repurchases, and $1.1B in acquisitions, prioritizing pharma investments.

• Recognized for sustainability and diversity, with top industry rankings and a strong employer brand.

Pharma segment and innovation

• Pharma business built organically and through acquisitions, with major investments in injectables and active material businesses.

• Focus on nasal and inhalation drug delivery, with pipeline expansion into cardiovascular, neurodegenerative, and metabolic diseases.

• High market share in respiratory, dermal, and eye care; injectables and oral delivery offer further growth opportunities.

• Proprietary devices are integral to combination medicines, ensuring recurring revenue even as drugs go generic or OTC.

• Nose-to-brain delivery is a key innovation area, with projects spanning mental health, metabolism, vaccines, and more.

Financial performance and capital allocation

• Pharma segment has achieved 7%-11% top-line growth and 26% adjusted EBITDA growth, with profitability in the 32%-36% range.

• Dividend payout ratio is 30%-40%, with the most recent increase at 7%.

• CapEx is expected to remain steady, focused on incremental capacity rather than new large sites.

• Share repurchases have increased, with $190M spent YTD and $273M remaining in board authorization.