AptarGroup (ATR) 44th Annual J.P. Morgan Healthcare Conference summary

Business Overview and Strategic Positioning

• Pharma is the largest segment, contributing 46% of revenue and 67% of adjusted EBITDA, with a focus on proprietary drug delivery systems and strong IP protection.

• The company is a leading provider in drug delivery, dosing, protection technologies, and consumer product dispensing, with $3.6B in 2024 revenue and a diversified portfolio across pharma, beauty, and closures.

• Capital allocation prioritizes pharma, with 32 years of rising dividends, active share repurchases, and global investments, especially in Europe.

• Sustainability is a competitive advantage, recognized by TIME, Forbes, Barron's, and EcoVadis, and attracts talent and consumer-facing customers.

• The company leverages common technology platforms across Pharma, Beauty, and Closures, driving operational efficiency and ongoing restructuring for growth, especially in Asia.

Pharma Business, Innovation, and Technology

• Proprietary drug delivery systems are the main growth and profit engine, accounting for 72% of pharma sales, with strong positions in injectables, active material science, and digital health.

• Strong positions in nasal, inhaler, eye care, dermal, and injectable drug delivery, with a robust and expanding pipeline that has grown 54% in value and 46% in opportunities since 2019.

• Systemic nasal drug delivery is a major innovation, enabling drugs to enter the bloodstream or brain directly via the nose, with recent clinical trials for nasal COVID vaccine and heart medications.

• Over 7,300 patents granted or pending, with R&D spend at ~3% of sales, primarily focused on pharma innovation.

• New product launches include recyclable nasal spray pumps, preservative-free ophthalmic systems, and digital health platforms.

Financial Performance and Capital Allocation

• Pharma segment maintains 7-11% top-line growth guidance and 32-36% EBITDA margin, with adjusted EBITDA margin reaching 34.6% in 2024.

• Approximately 70% of capital is reinvested into core business and growth, with $1B+ returned to shareholders since 2020 through dividends and buybacks.

• In 2025, share buybacks were at a historical high, with $270 million remaining authorized at Q3, expected to be fully utilized by Q1.

• Strategic acquisitions and partnerships have driven growth, with $1.1B invested in acquisitions since 2017, mainly in pharma.

• Free cash flow and ROIC are key metrics for evaluating performance and capital deployment.