AptarGroup (ATR) 45th Annual William Blair Growth Stock Conference summary

Strategic positioning and business overview

• Focus on proprietary technology and innovation, with deep regulatory and consumer insights across pharma, beauty, and closures segments.

• Sustainability is a core value and competitive advantage, recognized by top industry awards and integrated into operations and employee value proposition.

• Global footprint with balanced presence in North America, Europe, Latin America, and Asia, serving over 5,000 customers.

Financial performance and targets

• Long-term targets revised in 2023: pharma core sales growth rate increased to 7%-11%, Adjusted EBITDA target to 21%-23%, and ROIC to 11%-13%.

• Consistent achievement of financial targets, with 2024 results within long-term ranges and closures business showing improved consistency.

• Disciplined capital allocation: 70% reinvested in business (mainly pharma), 30% returned to shareholders via dividends and buybacks.

• 32 consecutive years of increasing annual dividends, with nearly $800 million returned to shareholders from 2019-2024.

• Strong balance sheet with leverage ratio at 1.16x and robust free cash flow supporting growth and shareholder returns.

Pharma segment growth drivers

• Pharma is the largest and most profitable segment, contributing nearly 70% of EBITDA.

• Growth driven by proprietary drug delivery devices, long regulatory timelines, and recurring revenue from products in Drug Master Files.

• Trends include repurposing drugs for nasal delivery, expansion in allergic rhinitis treatments, and growth in biologics and GLP-1 injectables.

• Generic and OTC transitions benefit device sales due to retained IP and expanded distribution.

• Digital health offerings and active material science solutions add value and support new drug launches.