APTARGROUP, INC. — Call Transcript 2025

Good afternoon. I am Dan Rizzolo with Jefferies Equity Research. Up next, we have AptarGroup. With us today, we have CEO Stephan Tanda, CFO Vanessa Kanu, Gael Touya, who's Aptar Pharma President, and Mary Skafidas, who is SVP of Investor Relations. We're going to have a quick presentation in about 15-20 minutes, and afterwards, there will be time for questions. With that, I'll turn it over to Stephan for the presentation. I'll give that to you, Dan. Thank you, Dan. Good afternoon, everybody. I got the great, energetic after-lunch hour. Welcome to Aptar in 25 minutes. For those of you not familiar with the company, we've been around for about 80 years, public for 35 years. Today, pharma is really the driving force of our company with almost 70% of EBITDA. The pharma business is really all about proprietary drug delivery devices, predominantly drug delivery through the nose or inhalation, but also ophthalmic and dermal. We'll spend quite some time on it. We also have a beauty business and the closure business, so broadly serve demographically advantaged end users, all the things you would think about, aging population, health, and wellness. In the drug application, we serve predominantly chronic disease treatment like asthma, COPD, allergic rhinitis, medicines that people take every day. We report out in three reporting segments, if you want the verticals here. We manage the company really by technology platforms that you see here. Fundamentally, the core industrial processes that we execute are the same across the company: precision injection molding, followed by high-speed automated assembly, think hundreds of parts per minute, followed by automated AI-assisted quality control. We practice that across the whole company. As I said, we report out in these segments. We own the intellectual property of everything we produce. We are not a service provider. We are not a service manufacturer. We create and own the IP of the devices, obviously with deep pharma regulatory expertise. We also produce lifesaving drugs and medicines that need to work to a 99.999% reliability standard. That is really what makes us the partner of choice for many early-stage drug development activities. Our—thank you, Mary. I had a tickle. Thank you. Now I have water. What is that? We tried to figure it out. We couldn't. Yeah. I won't even bother. When you look at the performance of the pharma business, top-line growth in the 7%-11% the last couple of years, 8% three years core sales on average, adjusted EBITDA growth 26%, pharma profitability is in the 32%-36% EBITDA range. We focused a lot on productivity in recent years, driving EPS growth to almost 50%, strong cash generation and dividend. We've paid dividends for the annually increasing dividends for the last 32 years. You're all looking after me. Thank you. Now, when it comes to capital deployment, we really obviously preferentially deploy capital towards our pharma business because it's the highest returning, the most rapidly growing, and addressing the largest addressable market, followed by beauty and closures. Over the last seven years, you see here, we returned $8 billion in dividends, $6 billion in share repurchases, about $1.1 billion acquisition and the balance in CapEx, again, preferentially towards the pharma business. Here you see our dividend track record, 32 years of annually increasing dividend, certainly something we take very, very seriously. We just last quarter announced another dividend increase of 7%, payout ratio of 30%-40%. We are currently at the lower end of that payout ratio despite the increase. Now, we are in Europe, so we talk more about sustainability. We are very proud of our sustainability track record. We are the trailblazer in sustainability in our industry. You want both hard and soft recognitions here. Echovate is platinum. That means you're in the top 1% since 2021, CDP A-list for a number of years, but also more soft things like named amongst the top companies for women by Forbes, most sustainable companies by Time Magazine, Barron's 100% top 100 most sustainable companies, Newsweek, and so on. The same in France by Le Point or in China. We take not only what we do very seriously, but how we do it. Our people are highly committed to the company. We've become an academic company for our industry that makes our people highly sought after, but also means that we are able to recruit above our weight class, if you want, because not only of what we do, but how we go about doing the business. Now, let's deep dive into what you're most interested in, our pharma business. I mentioned that proprietary drug delivery systems is the core engine of our profit growth. That business was built organically out of our beauty business. When you think about a high-end fragrance pump, if you reconfigure that, you get a nasal spray. If you think about an aerosol dispensing system, if you shrink that down, you get an inhaler. In fact, our first pharma products were made in beauty factories 40 years ago until we started to make bespoke pharma capacity investments. Today, it is the profit engine. We bought additional businesses. First, Injectable Solutions in 2012 was a privately held French company called Stelmi. We modernized it, upgraded the technology that today, where today it is equal to West's technology, and expanded capacity in the United States, in Europe, and also added capacity in Asia. In 2018, we bought Active Material business that really allows us to protect drugs, protect sensing systems. For example, we're in diabetes test strips, but also in flash glucose monitors like Abbott's Libre and some of the consumer-related products. Again, it is the combination of having the intellectual property, being in various indications that are chronic disease-related, which means you need the drugs every day. More and more, the nose has been discovered as a preferred drug delivery route. It used to be you just use the nose for treatment of the sniffles or decongestion or allergic rhinitis. Today, of course, it is used increasingly for total body treatment, getting drugs into the bloodstream. It started out with Narcan or delivering naloxone to reverse opioid overdoses. Spravato came for antidepressant treatment. Today, our pipeline is full with things that address the cardiovascular system. For example, recently, Ambimist to treat edema, tachycardia is right next to it. We have things in the pipeline to treat neurodegenerative diseases and also deliver larger molecules and peptides through the nose. That all is enabled by our regulatory expertise. We work with pharma companies from early stage to get a combination medicine approved. Once the approval is achieved, stay with them for the life of the drug. In the respiratory, dermal, eye care spaces, we have very high market shares. Of course, in injectables and orals, we have plenty of growth opportunities. In injectables, I already mentioned that we are on things like the GLP-1 autoinjectors. In oral, particularly for sensitive drugs that need to be in a protected environment, the blister, think of it as a protected environment. Within that blister, we can influence the atmosphere, whether it's reduce oxygen content, reduce moisture, CO2, or emit products like chlorine dioxide to preserve a medication or a food product. When you look at our track record, we grew the pharma business by 8% over the last decade and, frankly, significantly also the previous decade and also EBITDA. In more recent years, we've accelerated our EBITDA growth just because we push more and more into the proprietary drug delivery side of things. We've started to disclose the pipeline value and number of opportunities, and they all head in the right direction. There was a bit of a bump during COVID time. Fundamentally, we're very excited about our pipeline. The pipeline adds to the base revenue base. If you don't take anything else away from this presentation, it's the following. We work with the development partners, as I said, for a decade to create an approved combination medicine. What is an approved combination medicine? It's the API. It's the formulation. And it's our dispensing device. That is what is approved. That is what is captured in the drug master file. Once the API goes off patent, it becomes a generic medication. It's still our dispensing device that is required for that combination medicine. If the product goes over the counter, same thing. We actually make the same, sometimes increasing margin as we go through the stages of a drug. That means we have a perpetual revenue stream, perpetually growing revenue stream for these drugs. The pipeline adds on top of it. I don't know any other pharma business that works like that where you have that profitability level. That's what's behind the magic of our pharma business. As I mentioned, Nose2Brain has been discovered as not just a local drug delivery vehicle, but really for all kinds of therapeutic areas. This is probably the second most important slide to take away. It's all the areas where we have projects in the pipeline from neural disorder, neural degeneration, mental health, metabolism, up until including GLP-1 delivery through the nose, but also vaccines and cardiovascular. Maybe bring a little fun in the conversation. One of our investors says, "You know, we've known that the nose is a great drug delivery vehicle for decades. Finally, the pharma industry is catching up to that." It is the route from the nose to the brain that works the quickest. No need to go through the GI tract, overdose dramatically just to get a few molecules into the brain. The nose is a much quicker way to go there. A few words about our other businesses. The beauty business is a world leader in the fragrance and skincare area. Very much grew up in Europe, but now is a global business. This is sales by region. Of course, what we sell in Europe ends up in the luxury fragrance products that you pick up in a duty-free store when you leave here, please, start at $200 and up, or premium skincare products. We have invested a lot in operational efficiency, increasing margins in the renovation of the beauty business. Today, it is a much more competitive business. As volume increases, profitability will increase further. Our closures business, for those who do not know, we were the people that allowed Kraft Heinz to put the ketchup upside down because of a unique valve that keeps things clean. After that came sour cream. Now it is Procter & Gamble's dish soap category that has been changed. Changing categories to formats that use our product is really the driving force behind closures. This conversion of driving categories, whether it is from allergy build to nasal spray, from injected naloxone to nasal naloxone, or from sour cream to sour cream that stands upside down, this conversion is really what is driving growth in our markets. In addition to that, of course, we have regional growth and all the other levels to drive profitability. With that, we have hit a Narcan pothole at the moment that has pulled our stock price down. When we take Narcan aside, everything else in the pharma business is working very well. Injectable business is hitting on all cylinders, also fueled by GLP-1. We are the innovation leader in the industry and have a very strong balance sheet that not only allows us to pay dividends, buy back more shares, especially at the moment, but also retain our strategic optionality. With that, I submit myself to your questions, Dan. Okay. If anybody has a question in the audience, please raise your hand. For now, what I just want to kind of start with, one of the big exciting growth drivers for you guys is the injectables business. You mentioned GLP-1. If we were to look out five years from now, how would the injectables business say compared to maybe nasal delivery? I mean, do you see it being comparable, or do you see nasal delivery still outpacing it for the next five years, or how should we think about it? Yeah, let me start out, and then Gael, please jump in. Look, the relative size is still quite different. The nasal and proprietary drug delivery business in general is by far bigger as a business and more profitable. With all the things that you saw in the pipeline, we continue to see that as being the locomotive that pulls our pharma business. We're very proud of our injectable business. Right now, it's 17% of pharma. With being technologically equivalent to West but driving a different business model, we see that business continue to grow very nicely. Of course, GLP-1 is turbocharging it. Probably will become 20% of injectables down the road, maybe even more, but other parts of injectable are pulling as well. Gael, why don't you? Yeah, you know that segment, the injectable segment is the one growing way faster than the other segment. Most of the development are for an injectable form of delivery. Obviously, I mean, if we were to look at 50 years down the road, the growth rate will be nicer for. This being said, there's a lot of drug repurposing program happening right now. This is what we see in our pipeline. There we obviously extract slightly more value because we control the dose. I mean, we deliver the full combination product offering. You do not want to overdose, underdose. That is where we are positioned. If we think about GLP-1 and Annex 1 compliance, they are two separate issues. When do you see the sales peaking? Is it like a three-year trajectory upwards before it kind of flattens out for, I mean, is each different? How should we think about it over the next two to five years or ten years? Yeah, I wouldn't think about this in peak. Obesity is probably the ultimate chronic disease. It's like being a drug addict and having drugs around you every day, and part of which you have to take. I don't see a peak to GLP-1 sales. There will be a different mix of autoinjectors, pen, oral formats. Plus, you can't go spend a week without a new indication being called out, whether it's dependence management, whether it's cardiovascular benefits, and so on. This is more about what is the trajectory of the growth rate. For the Annex 1 compliance, I mean, how should we think about that? Yeah, we've got a nice pipeline right now. Customers are coming with Aptar, and they need to be fully compliant with. This is part of our investment, what we have done in the last years, not only to develop new technology capacity around the world, but also being in line with the Annex 1 to be fully compliant. We see a nice pipeline. I think that's going to be an interesting, I would say, growth driver for pharma injectable. Yeah. Again, there also, I wouldn't see it as a peak. Once you know or are practicing a better way of doing things, meaning a safer way, a more sterile way, there's no reason to go back. We think about what you've done over the past few years is kind of build out four different things. You kind of updated your R&D facilities, I believe, both in the U.S. and in Europe. I was wondering if there's need for more CapEx spend in the coming years to meet the potential growth from your different products, or if you think you have enough capacity to meet what's coming. Yeah. Our CapEx comes really in two forms. One is kind of to build large, sometimes I call them disrespectfully boxes, large new sites. We just built the state-of-the-art large site in China where we hadn't really invested in new facilities since the mid-1990s. We've built a brand new facility for injectables in Normandy and one for beauty in France in the Rhône-Alpes region. We don't see any of those large investments coming up in the coming years. Then comes the second part, which is really additional equipment, additional capacity in the buildings, or adding another wing to a building like we've done in Congress over time to build out facilities. Those are much smaller investments. Our largest capital investment this year was $5 million or so. Logical increment for us is $2-$3 million. There is plenty of space to create capacity. We have 50 sites around the world. There is no need to build another site. We shut down sites. We make acquisitions. We add some sites. Other than that, for the next few years, we see capital expenditure more to be steady state. As Vanessa said at the Capital Markets Day, for the consumer-facing business, it is kind of mid-single digits of revenue, plus, and for pharma, it is kind of more high single digit, low double digit, depending on the year. CapEx should be pretty conservative the coming years. You jumped into, or jumped into, but you augmented your pharma business by one. I think you did M&A in injectables in 2012. Then you got into active ingredients in 2018 or so. I was wondering if there's another subsegment that might be interesting too that you're not in, I mean, or yeah, how you're doing that. Yeah. When we look at acquisitions in pharma, it's really, and frankly, for the company as a total, are there additional technologies that we can add to the portfolio that deepen the moat or open adjacencies? For example, we acquired SipNose a couple last year to improve the intellectual property portfolio around and add some additional nasal capabilities or an additional geography. For example, the injectable facility we bought in China that came with a coveted government license, or just a good business that comes with good management that is an adjacency. I mean, we talk a lot about nasal inhalation, but we're also active in dermal drug delivery and ophthalmic drug delivery, or some additional services like the CRO facility we acquired in New Jersey. It is really broadening the business, deepening the moat, something that can do better under Aptar leadership and ownership than it does outside, but always with a keen eye on management. The digital assets that we bought came with management that still works for us happily. The same for the active material business. We want to make sure that one plus one equals three. Gotcha. Final question, because we only have about a minute left here. With what's happened with the stock price, but with what your priorities are, are share repurchases looking more attractive at this point versus maybe some of versus historically what you thought about it? Vanessa, why don't you? A little bit attractive, I would say. A little bit attractive. Yes, indeed. We have leaned in a lot more on share repurchases this year. We had done about $190 million or so, 1.3 million shares by year to date to the end of Q3. What we did say was that we would look to essentially exhaust the remaining authorizations. We have got about $273 million left in our board authorized pool for share buybacks. Certainly, we are executing against that given the current conditions. I mean, usually, my cardinal rule is never opine on the stock price, but I think the reaction to the Narcan pullback feels a little bit overdone. I agree. We buy back shares. We buy back shares. All right, guys. Thank you very much. Thank you, everyone, for sitting here. We really appreciate it. Thank you. Thank you. Thank you.

Speaker 3: Good afternoon. I am Dan Rizzolo with Jefferies Equity Research. Up next, we have AptarGroup. With us today, we have CEO Stephan Tanda, CFO Vanessa Kanu, Gael Touya, who's Aptar Pharma President, and Mary Skafidas, who is SVP of Investor Relations. We're going to have a quick presentation in about 15-20 minutes, and afterwards, there will be time for questions. With that, I'll turn it over to Stephan for the presentation. Good afternoon. good afternoon I am Dan Rizzolo with Jefferies Equity Research. i am dan rizzolo with jefferies equity research Up next, we have AptarGroup. up next we have aptargroup With us today, we have CEO Stephan Tanda, CFO Vanessa Kanu, Gael Touya, who's Aptar Pharma President, and Mary Skafidas, who is SVP of Investor Relations. with us today we have ceo stephan tanda cfo vanessa kanu gael touya who's aptar pharma president and mary skafidas who is svp of investor relations We're going to have a quick presentation in about 15-20 minutes, and afterwards, there will be time for questions. we're going to have a quick presentation in about 15-20 minutes and afterwards there will be time for questions With that, I'll turn it over to Stephan for the presentation. with that i'll turn it over to stephan for the presentation I'll give that to you, Dan. I'll give that to you, Dan. i'll give that to you dan

Speaker 6: Thank you, Dan. Good afternoon, everybody. I got the great, energetic after-lunch hour. Welcome to Aptar in 25 minutes. For those of you not familiar with the company, we've been around for about 80 years, public for 35 years. Today, pharma is really the driving force of our company with almost 70% of EBITDA. The pharma business is really all about proprietary drug delivery devices, predominantly drug delivery through the nose or inhalation, but also ophthalmic and dermal. We'll spend quite some time on it. We also have a beauty business and the closure business, so broadly serve demographically advantaged end users, all the things you would think about, aging population, health, and wellness. In the drug application, we serve predominantly chronic disease treatment like asthma, COPD, allergic rhinitis, medicines that people take every day. Thank you, Dan. thank you dan Good afternoon, everybody. good afternoon everybody I got the great, energetic after-lunch hour. i got the great energetic after-lunch hour Welcome to Aptar in 25 minutes. welcome to aptar in 25 minutes For those of you not familiar with the company, we've been around for about 80 years, public for 35 years. for those of you not familiar with the company we've been around for about 80 years public for 35 years Today, pharma is really the driving force of our company with almost 70% of EBITDA. today pharma is really the driving force of our company with almost 70% of ebitda The pharma business is really all about proprietary drug delivery devices, predominantly drug delivery through the nose or inhalation, but also ophthalmic and dermal. the pharma business is really all about proprietary drug delivery devices predominantly drug delivery through the nose or inhalation but also ophthalmic and dermal We'll spend quite some time on it. we'll spend quite some time on it We also have a beauty business and the closure business, so broadly serve demographically advantaged end users, all the things you would think about, aging population, health, and wellness. we also have a beauty business and the closure business so broadly serve demographically advantaged end users all the things you would think about aging population health and wellness In the drug application, we serve predominantly chronic disease treatment like asthma, COPD, allergic rhinitis, medicines that people take every day. in the drug application we serve predominantly chronic disease treatment like asthma copd allergic rhinitis medicines that people take every day We report out in three reporting segments, if you want the verticals here. We manage the company really by technology platforms that you see here. Fundamentally, the core industrial processes that we execute are the same across the company: precision injection molding, followed by high-speed automated assembly, think hundreds of parts per minute, followed by automated AI-assisted quality control. We practice that across the whole company. As I said, we report out in these segments. We own the intellectual property of everything we produce. We are not a service provider. We are not a service manufacturer. We create and own the IP of the devices, obviously with deep pharma regulatory expertise. We also produce lifesaving drugs and medicines that need to work to a 99.999% reliability standard. That is really what makes us the partner of choice for many early-stage drug development activities. Our—thank you, Mary. We report out in three reporting segments, if you want the verticals here. we report out in three reporting segments if you want the verticals here We manage the company really by technology platforms that you see here. we manage the company really by technology platforms that you see here Fundamentally, the core industrial processes that we execute are the same across the company: precision injection molding, followed by high-speed automated assembly, think hundreds of parts per minute, followed by automated AI-assisted quality control. fundamentally the core industrial processes that we execute are the same across the company precision injection molding followed by high-speed automated assembly think hundreds of parts per minute followed by automated ai-assisted quality control We practice that across the whole company. we practice that across the whole company As I said, we report out in these segments. as i said we report out in these segments We own the intellectual property of everything we produce. we own the intellectual property of everything we produce We are not a service provider. We are not a service manufacturer. we are not a service provider. we are not a service manufacturer We create and own the IP of the devices, obviously with deep pharma regulatory expertise. we create and own the ip of the devices obviously with deep pharma regulatory expertise We also produce lifesaving drugs and medicines that need to work to a 99.999% reliability standard. we also produce lifesaving drugs and medicines that need to work to a 99.999% reliability standard That is really what makes us the partner of choice for many early-stage drug development activities. that is really what makes us the partner of choice for many early-stage drug development activities Our—thank you, Mary. our—thank you mary I had a tickle. Thank you. Now I have water. What is that? I had a tickle. i had a tickle Thank you. thank you Now I have water. now i have water What is that? what is that

Speaker 2: We tried to figure it out. We couldn't. We tried to figure it out. we tried to figure it out We couldn't. we couldn't

Speaker 6: Yeah. I won't even bother. When you look at the performance of the pharma business, top-line growth in the 7%-11% the last couple of years, 8% three years core sales on average, adjusted EBITDA growth 26%, pharma profitability is in the 32%-36% EBITDA range. We focused a lot on productivity in recent years, driving EPS growth to almost 50%, strong cash generation and dividend. We've paid dividends for the annually increasing dividends for the last 32 years. You're all looking after me. Thank you. Now, when it comes to capital deployment, we really obviously preferentially deploy capital towards our pharma business because it's the highest returning, the most rapidly growing, and addressing the largest addressable market, followed by beauty and closures. Yeah. yeah I won't even bother. i won't even bother When you look at the performance of the pharma business, top-line growth in the 7%-11% the last couple of years, 8% three years core sales on average, adjusted EBITDA growth 26%, pharma profitability is in the 32%-36% EBITDA range. when you look at the performance of the pharma business top-line growth in the 7%-11% the last couple of years 8% three years core sales on average adjusted ebitda growth 26% pharma profitability is in the 32%-36% ebitda range We focused a lot on productivity in recent years, driving EPS growth to almost 50%, strong cash generation and dividend. we focused a lot on productivity in recent years driving eps growth to almost 50% strong cash generation and dividend We've paid dividends for the annually increasing dividends for the last 32 years. we've paid dividends for the annually increasing dividends for the last 32 years You're all looking after me. you're all looking after me Thank you. thank you Now, when it comes to capital deployment, we really obviously preferentially deploy capital towards our pharma business because it's the highest returning, the most rapidly growing, and addressing the largest addressable market, followed by beauty and closures. now when it comes to capital deployment we really obviously preferentially deploy capital towards our pharma business because it's the highest returning the most rapidly growing and addressing the largest addressable market followed by beauty and closures Over the last seven years, you see here, we returned $8 billion in dividends, $6 billion in share repurchases, about $1.1 billion acquisition and the balance in CapEx, again, preferentially towards the pharma business. Here you see our dividend track record, 32 years of annually increasing dividend, certainly something we take very, very seriously. We just last quarter announced another dividend increase of 7%, payout ratio of 30%-40%. We are currently at the lower end of that payout ratio despite the increase. Now, we are in Europe, so we talk more about sustainability. We are very proud of our sustainability track record. We are the trailblazer in sustainability in our industry. You want both hard and soft recognitions here. Echovate is platinum. Over the last seven years, you see here, we returned $8 billion in dividends, $6 billion in share repurchases, about $1.1 billion acquisition and the balance in CapEx, again, preferentially towards the pharma business. over the last seven years you see here we returned $8 billion in dividends $6 billion in share repurchases about $1.1 billion acquisition and the balance in capex again preferentially towards the pharma business Here you see our dividend track record, 32 years of annually increasing dividend, certainly something we take very, very seriously. here you see our dividend track record 32 years of annually increasing dividend certainly something we take very very seriously We just last quarter announced another dividend increase of 7%, payout ratio of 30%-40%. we just last quarter announced another dividend increase of 7% payout ratio of 30%-40% We are currently at the lower end of that payout ratio despite the increase. we are currently at the lower end of that payout ratio despite the increase Now, we are in Europe, so we talk more about sustainability. We are very proud of our sustainability track record. We are the trailblazer in sustainability in our industry. now, we are in europe so we talk more about sustainability. we are very proud of our sustainability track record. we are the trailblazer in sustainability in our industry You want both hard and soft recognitions here. you want both hard and soft recognitions here Echovate is platinum. echovate is platinum That means you're in the top 1% since 2021, CDP A-list for a number of years, but also more soft things like named amongst the top companies for women by Forbes, most sustainable companies by Time Magazine, Barron's 100% top 100 most sustainable companies, Newsweek, and so on. The same in France by Le Point or in China. We take not only what we do very seriously, but how we do it. Our people are highly committed to the company. We've become an academic company for our industry that makes our people highly sought after, but also means that we are able to recruit above our weight class, if you want, because not only of what we do, but how we go about doing the business. Now, let's deep dive into what you're most interested in, our pharma business. That means you're in the top 1% since 2021, CDP A-list for a number of years, but also more soft things like named amongst the top companies for women by Forbes, most sustainable companies by Time Magazine, Barron's 100% top 100 most sustainable companies, Newsweek, and so on. that means you're in the top 1% since 2021 cdp a-list for a number of years but also more soft things like named amongst the top companies for women by forbes most sustainable companies by time magazine barron's 100% top 100 most sustainable companies newsweek and so on The same in France by Le Point or in China. the same in france by le point or in china We take not only what we do very seriously, but how we do it. we take not only what we do very seriously but how we do it Our people are highly committed to the company. our people are highly committed to the company We've become an academic company for our industry that makes our people highly sought after, but also means that we are able to recruit above our weight class, if you want, because not only of what we do, but how we go about doing the business. we've become an academic company for our industry that makes our people highly sought after but also means that we are able to recruit above our weight class if you want because not only of what we do but how we go about doing the business Now, let's deep dive into what you're most interested in, our pharma business. now let's deep dive into what you're most interested in our pharma business I mentioned that proprietary drug delivery systems is the core engine of our profit growth. That business was built organically out of our beauty business. When you think about a high-end fragrance pump, if you reconfigure that, you get a nasal spray. If you think about an aerosol dispensing system, if you shrink that down, you get an inhaler. In fact, our first pharma products were made in beauty factories 40 years ago until we started to make bespoke pharma capacity investments. Today, it is the profit engine. We bought additional businesses. First, Injectable Solutions in 2012 was a privately held French company called Stelmi. We modernized it, upgraded the technology that today, where today it is equal to West's technology, and expanded capacity in the United States, in Europe, and also added capacity in Asia. I mentioned that proprietary drug delivery systems is the core engine of our profit growth. i mentioned that proprietary drug delivery systems is the core engine of our profit growth That business was built organically out of our beauty business. that business was built organically out of our beauty business When you think about a high-end fragrance pump, if you reconfigure that, you get a nasal spray. when you think about a high-end fragrance pump if you reconfigure that you get a nasal spray If you think about an aerosol dispensing system, if you shrink that down, you get an inhaler. if you think about an aerosol dispensing system if you shrink that down you get an inhaler In fact, our first pharma products were made in beauty factories 40 years ago until we started to make bespoke pharma capacity investments. in fact our first pharma products were made in beauty factories 40 years ago until we started to make bespoke pharma capacity investments Today, it is the profit engine. today it is the profit engine We bought additional businesses. we bought additional businesses First, Injectable Solutions in 2012 was a privately held French company called Stelmi. first injectable solutions in 2012 was a privately held french company called stelmi We modernized it, upgraded the technology that today, where today it is equal to West's technology, and expanded capacity in the United States, in Europe, and also added capacity in Asia. we modernized it upgraded the technology that today where today it is equal to west's technology and expanded capacity in the united states in europe and also added capacity in asia In 2018, we bought Active Material business that really allows us to protect drugs, protect sensing systems. For example, we're in diabetes test strips, but also in flash glucose monitors like Abbott's Libre and some of the consumer-related products. Again, it is the combination of having the intellectual property, being in various indications that are chronic disease-related, which means you need the drugs every day. More and more, the nose has been discovered as a preferred drug delivery route. It used to be you just use the nose for treatment of the sniffles or decongestion or allergic rhinitis. Today, of course, it is used increasingly for total body treatment, getting drugs into the bloodstream. It started out with Narcan or delivering naloxone to reverse opioid overdoses. Spravato came for antidepressant treatment. Today, our pipeline is full with things that address the cardiovascular system. In 2018, we bought Active Material business that really allows us to protect drugs, protect sensing systems. in 2018 we bought active material business that really allows us to protect drugs protect sensing systems For example, we're in diabetes test strips, but also in flash glucose monitors like Abbott's Libre and some of the consumer-related products. for example we're in diabetes test strips but also in flash glucose monitors like abbott's libre and some of the consumer-related products Again, it is the combination of having the intellectual property, being in various indications that are chronic disease-related, which means you need the drugs every day. again it is the combination of having the intellectual property being in various indications that are chronic disease-related which means you need the drugs every day More and more, the nose has been discovered as a preferred drug delivery route. more and more the nose has been discovered as a preferred drug delivery route It used to be you just use the nose for treatment of the sniffles or decongestion or allergic rhinitis. it used to be you just use the nose for treatment of the sniffles or decongestion or allergic rhinitis Today, of course, it is used increasingly for total body treatment, getting drugs into the bloodstream. today of course it is used increasingly for total body treatment getting drugs into the bloodstream It started out with Narcan or delivering naloxone to reverse opioid overdoses. it started out with narcan or delivering naloxone to reverse opioid overdoses Spravato came for antidepressant treatment. spravato came for antidepressant treatment Today, our pipeline is full with things that address the cardiovascular system. today our pipeline is full with things that address the cardiovascular system For example, recently, Ambimist to treat edema, tachycardia is right next to it. We have things in the pipeline to treat neurodegenerative diseases and also deliver larger molecules and peptides through the nose. That all is enabled by our regulatory expertise. We work with pharma companies from early stage to get a combination medicine approved. Once the approval is achieved, stay with them for the life of the drug. In the respiratory, dermal, eye care spaces, we have very high market shares. Of course, in injectables and orals, we have plenty of growth opportunities. In injectables, I already mentioned that we are on things like the GLP-1 autoinjectors. In oral, particularly for sensitive drugs that need to be in a protected environment, the blister, think of it as a protected environment. For example, recently, Ambimist to treat edema, tachycardia is right next to it. for example recently ambimist to treat edema tachycardia is right next to it We have things in the pipeline to treat neurodegenerative diseases and also deliver larger molecules and peptides through the nose. we have things in the pipeline to treat neurodegenerative diseases and also deliver larger molecules and peptides through the nose That all is enabled by our regulatory expertise. that all is enabled by our regulatory expertise We work with pharma companies from early stage to get a combination medicine approved. we work with pharma companies from early stage to get a combination medicine approved Once the approval is achieved, stay with them for the life of the drug. once the approval is achieved stay with them for the life of the drug In the respiratory, dermal, eye care spaces, we have very high market shares. in the respiratory dermal eye care spaces we have very high market shares Of course, in injectables and orals, we have plenty of growth opportunities. of course in injectables and orals we have plenty of growth opportunities In injectables, I already mentioned that we are on things like the GLP-1 autoinjectors. in injectables i already mentioned that we are on things like the glp-1 autoinjectors In oral, particularly for sensitive drugs that need to be in a protected environment, the blister, think of it as a protected environment. in oral particularly for sensitive drugs that need to be in a protected environment the blister think of it as a protected environment Within that blister, we can influence the atmosphere, whether it's reduce oxygen content, reduce moisture, CO2, or emit products like chlorine dioxide to preserve a medication or a food product. When you look at our track record, we grew the pharma business by 8% over the last decade and, frankly, significantly also the previous decade and also EBITDA. In more recent years, we've accelerated our EBITDA growth just because we push more and more into the proprietary drug delivery side of things. We've started to disclose the pipeline value and number of opportunities, and they all head in the right direction. There was a bit of a bump during COVID time. Fundamentally, we're very excited about our pipeline. The pipeline adds to the base revenue base. If you don't take anything else away from this presentation, it's the following. Within that blister, we can influence the atmosphere, whether it's reduce oxygen content, reduce moisture, CO2, or emit products like chlorine dioxide to preserve a medication or a food product. within that blister we can influence the atmosphere whether it's reduce oxygen content reduce moisture co2 or emit products like chlorine dioxide to preserve a medication or a food product When you look at our track record, we grew the pharma business by 8% over the last decade and, frankly, significantly also the previous decade and also EBITDA. when you look at our track record we grew the pharma business by 8% over the last decade and frankly significantly also the previous decade and also ebitda In more recent years, we've accelerated our EBITDA growth just because we push more and more into the proprietary drug delivery side of things. in more recent years we've accelerated our ebitda growth just because we push more and more into the proprietary drug delivery side of things We've started to disclose the pipeline value and number of opportunities, and they all head in the right direction. we've started to disclose the pipeline value and number of opportunities and they all head in the right direction There was a bit of a bump during COVID time. there was a bit of a bump during covid time Fundamentally, we're very excited about our pipeline. fundamentally we're very excited about our pipeline The pipeline adds to the base revenue base. the pipeline adds to the base revenue base If you don't take anything else away from this presentation, it's the following. if you don't take anything else away from this presentation it's the following We work with the development partners, as I said, for a decade to create an approved combination medicine. What is an approved combination medicine? It's the API. It's the formulation. And it's our dispensing device. That is what is approved. That is what is captured in the drug master file. Once the API goes off patent, it becomes a generic medication. It's still our dispensing device that is required for that combination medicine. If the product goes over the counter, same thing. We actually make the same, sometimes increasing margin as we go through the stages of a drug. That means we have a perpetual revenue stream, perpetually growing revenue stream for these drugs. The pipeline adds on top of it. I don't know any other pharma business that works like that where you have that profitability level. We work with the development partners, as I said, for a decade to create an approved combination medicine. we work with the development partners as i said for a decade to create an approved combination medicine What is an approved combination medicine? what is an approved combination medicine It's the API. it's the api It's the formulation. it's the formulation And it's our dispensing device. and it's our dispensing device That is what is approved. that is what is approved That is what is captured in the drug master file. that is what is captured in the drug master file Once the API goes off patent, it becomes a generic medication. once the api goes off patent it becomes a generic medication It's still our dispensing device that is required for that combination medicine. it's still our dispensing device that is required for that combination medicine If the product goes over the counter, same thing. if the product goes over the counter same thing We actually make the same, sometimes increasing margin as we go through the stages of a drug. we actually make the same sometimes increasing margin as we go through the stages of a drug That means we have a perpetual revenue stream, perpetually growing revenue stream for these drugs. that means we have a perpetual revenue stream perpetually growing revenue stream for these drugs The pipeline adds on top of it. the pipeline adds on top of it I don't know any other pharma business that works like that where you have that profitability level. i don't know any other pharma business that works like that where you have that profitability level That's what's behind the magic of our pharma business. As I mentioned, Nose2Brain has been discovered as not just a local drug delivery vehicle, but really for all kinds of therapeutic areas. This is probably the second most important slide to take away. It's all the areas where we have projects in the pipeline from neural disorder, neural degeneration, mental health, metabolism, up until including GLP-1 delivery through the nose, but also vaccines and cardiovascular. Maybe bring a little fun in the conversation. One of our investors says, "You know, we've known that the nose is a great drug delivery vehicle for decades. Finally, the pharma industry is catching up to that." It is the route from the nose to the brain that works the quickest. No need to go through the GI tract, overdose dramatically just to get a few molecules into the brain. That's what's behind the magic of our pharma business. that's what's behind the magic of our pharma business As I mentioned, Nose2Brain has been discovered as not just a local drug delivery vehicle, but really for all kinds of therapeutic areas. as i mentioned nose2brain has been discovered as not just a local drug delivery vehicle but really for all kinds of therapeutic areas This is probably the second most important slide to take away. this is probably the second most important slide to take away It's all the areas where we have projects in the pipeline from neural disorder, neural degeneration, mental health, metabolism, up until including GLP-1 delivery through the nose, but also vaccines and cardiovascular. it's all the areas where we have projects in the pipeline from neural disorder neural degeneration mental health metabolism up until including glp-1 delivery through the nose but also vaccines and cardiovascular Maybe bring a little fun in the conversation. maybe bring a little fun in the conversation One of our investors says, "You know, we've known that the nose is a great drug delivery vehicle for decades. one of our investors says "you know we've known that the nose is a great drug delivery vehicle for decades Finally, the pharma industry is catching up to that." It is the route from the nose to the brain that works the quickest. finally the pharma industry is catching up to that." it is the route from the nose to the brain that works the quickest No need to go through the GI tract, overdose dramatically just to get a few molecules into the brain. no need to go through the gi tract overdose dramatically just to get a few molecules into the brain The nose is a much quicker way to go there. A few words about our other businesses. The beauty business is a world leader in the fragrance and skincare area. Very much grew up in Europe, but now is a global business. This is sales by region. Of course, what we sell in Europe ends up in the luxury fragrance products that you pick up in a duty-free store when you leave here, please, start at $200 and up, or premium skincare products. We have invested a lot in operational efficiency, increasing margins in the renovation of the beauty business. Today, it is a much more competitive business. As volume increases, profitability will increase further. Our closures business, for those who do not know, we were the people that allowed Kraft Heinz to put the ketchup upside down because of a unique valve that keeps things clean. The nose is a much quicker way to go there. the nose is a much quicker way to go there A few words about our other businesses. a few words about our other businesses The beauty business is a world leader in the fragrance and skincare area. the beauty business is a world leader in the fragrance and skincare area Very much grew up in Europe, but now is a global business. very much grew up in europe but now is a global business This is sales by region. this is sales by region Of course, what we sell in Europe ends up in the luxury fragrance products that you pick up in a duty-free store when you leave here, please, start at $ 200 and up, or premium skincare products. We have invested a lot in operational efficiency, increasing margins in the renovation of the beauty business. of course what we sell in europe ends up in the luxury fragrance products that you pick up in a duty-free store when you leave here please start at $ 200 and up or premium skincare products. we have invested a lot in operational efficiency increasing margins in the renovation of the beauty business Today, it is a much more competitive business. today it is a much more competitive business As volume increases, profitability will increase further. as volume increases profitability will increase further Our closures business, for those who do not know, we were the people that allowed Kraft Heinz to put the ketchup upside down because of a unique valve that keeps things clean. our closures business for those who do not know we were the people that allowed kraft heinz to put the ketchup upside down because of a unique valve that keeps things clean After that came sour cream. Now it is Procter & Gamble's dish soap category that has been changed. Changing categories to formats that use our product is really the driving force behind closures. This conversion of driving categories, whether it is from allergy build to nasal spray, from injected naloxone to nasal naloxone, or from sour cream to sour cream that stands upside down, this conversion is really what is driving growth in our markets. In addition to that, of course, we have regional growth and all the other levels to drive profitability. With that, we have hit a Narcan pothole at the moment that has pulled our stock price down. When we take Narcan aside, everything else in the pharma business is working very well. Injectable business is hitting on all cylinders, also fueled by GLP-1. After that came sour cream. after that came sour cream Now it is Procter & Gamble's dish soap category that has been changed. now it is procter & gamble's dish soap category that has been changed Changing categories to formats that use our product is really the driving force behind closures. changing categories to formats that use our product is really the driving force behind closures This conversion of driving categories, whether it is from allergy build to nasal spray, from injected naloxone to nasal naloxone, or from sour cream to sour cream that stands upside down, this conversion is really what is driving growth in our markets. this conversion of driving categories whether it is from allergy build to nasal spray from injected naloxone to nasal naloxone or from sour cream to sour cream that stands upside down this conversion is really what is driving growth in our markets In addition to that, of course, we have regional growth and all the other levels to drive profitability. in addition to that of course we have regional growth and all the other levels to drive profitability With that, we have hit a Narcan pothole at the moment that has pulled our stock price down. with that we have hit a narcan pothole at the moment that has pulled our stock price down When we take Narcan aside, everything else in the pharma business is working very well. when we take narcan aside everything else in the pharma business is working very well Injectable business is hitting on all cylinders, also fueled by GLP-1. injectable business is hitting on all cylinders also fueled by glp-1 We are the innovation leader in the industry and have a very strong balance sheet that not only allows us to pay dividends, buy back more shares, especially at the moment, but also retain our strategic optionality. With that, I submit myself to your questions, Dan. We are the innovation leader in the industry and have a very strong balance sheet that not only allows us to pay dividends, buy back more shares, especially at the moment, but also retain our strategic optionality. we are the innovation leader in the industry and have a very strong balance sheet that not only allows us to pay dividends buy back more shares especially at the moment but also retain our strategic optionality With that, I submit myself to your questions, Dan. with that i submit myself to your questions dan

Speaker 3: Okay. If anybody has a question in the audience, please raise your hand. For now, what I just want to kind of start with, one of the big exciting growth drivers for you guys is the injectables business. You mentioned GLP-1. If we were to look out five years from now, how would the injectables business say compared to maybe nasal delivery? I mean, do you see it being comparable, or do you see nasal delivery still outpacing it for the next five years, or how should we think about it? Okay. okay If anybody has a question in the audience, please raise your hand. if anybody has a question in the audience please raise your hand For now, what I just want to kind of start with, one of the big exciting growth drivers for you guys is the injectables business. for now what i just want to kind of start with one of the big exciting growth drivers for you guys is the injectables business You mentioned GLP-1. you mentioned glp-1 If we were to look out five years from now, how would the injectables business say compared to maybe nasal delivery? if we were to look out five years from now how would the injectables business say compared to maybe nasal delivery I mean, do you see it being comparable, or do you see nasal delivery still outpacing it for the next five years, or how should we think about it? i mean do you see it being comparable or do you see nasal delivery still outpacing it for the next five years or how should we think about it

Speaker 6: Yeah, let me start out, and then Gael, please jump in. Look, the relative size is still quite different. The nasal and proprietary drug delivery business in general is by far bigger as a business and more profitable. With all the things that you saw in the pipeline, we continue to see that as being the locomotive that pulls our pharma business. We're very proud of our injectable business. Right now, it's 17% of pharma. With being technologically equivalent to West but driving a different business model, we see that business continue to grow very nicely. Of course, GLP-1 is turbocharging it. Probably will become 20% of injectables down the road, maybe even more, but other parts of injectable are pulling as well. Gael, why don't you? Yeah, let me start out, and then Gael, please jump in. yeah let me start out and then gael please jump in Look, the relative size is still quite different. look the relative size is still quite different The nasal and proprietary drug delivery business in general is by far bigger as a business and more profitable. the nasal and proprietary drug delivery business in general is by far bigger as a business and more profitable With all the things that you saw in the pipeline, we continue to see that as being the locomotive that pulls our pharma business. with all the things that you saw in the pipeline we continue to see that as being the locomotive that pulls our pharma business We're very proud of our injectable business. we're very proud of our injectable business Right now, it's 17% of pharma. right now it's 17% of pharma With being technologically equivalent to West but driving a different business model, we see that business continue to grow very nicely. with being technologically equivalent to west but driving a different business model we see that business continue to grow very nicely Of course, GLP-1 is turbocharging it. of course glp-1 is turbocharging it Probably will become 20% of injectables down the road, maybe even more, but other parts of injectable are pulling as well. probably will become 20% of injectables down the road maybe even more but other parts of injectable are pulling as well Gael, why don't you? gael why don't you

Speaker 5: Yeah, you know that segment, the injectable segment is the one growing way faster than the other segment. Yeah, you know that segment, the injectable segment is the one growing way faster than the other segment. yeah you know that segment the injectable segment is the one growing way faster than the other segment Most of the development are for an injectable form of delivery. Obviously, I mean, if we were to look at 50 years down the road, the growth rate will be nicer for. This being said, there's a lot of drug repurposing program happening right now. This is what we see in our pipeline. There we obviously extract slightly more value because we control the dose. I mean, we deliver the full combination product offering. You do not want to overdose, underdose. That is where we are positioned. Most of the development are for an injectable form of delivery. most of the development are for an injectable form of delivery Obviously, I mean, if we were to look at 50 years down the road, the growth rate will be nicer for. obviously i mean if we were to look at 50 years down the road the growth rate will be nicer for This being said, there's a lot of drug repurposing program happening right now. this being said there's a lot of drug repurposing program happening right now This is what we see in our pipeline. this is what we see in our pipeline There we obviously extract slightly more value because we control the dose. there we obviously extract slightly more value because we control the dose I mean, we deliver the full combination product offering. i mean we deliver the full combination product offering You do not want to overdose, underdose. you do not want to overdose underdose That is where we are positioned. that is where we are positioned

Speaker 3: If we think about GLP-1 and Annex 1 compliance, they are two separate issues. When do you see the sales peaking? Is it like a three-year trajectory upwards before it kind of flattens out for, I mean, is each different? If we think about GLP-1 and Annex 1 compliance, they are two separate issues. if we think about glp-1 and annex 1 compliance they are two separate issues When do you see the sales peaking? when do you see the sales peaking Is it like a three-year trajectory upwards before it kind of flattens out for, I mean, is each different? is it like a three-year trajectory upwards before it kind of flattens out for i mean is each different How should we think about it over the next two to five years or ten years? How should we think about it over the next two to five years or ten years? how should we think about it over the next two to five years or ten years

Speaker 6: Yeah, I wouldn't think about this in peak. Obesity is probably the ultimate chronic disease. It's like being a drug addict and having drugs around you every day, and part of which you have to take. I don't see a peak to GLP-1 sales. There will be a different mix of autoinjectors, pen, oral formats. Plus, you can't go spend a week without a new indication being called out, whether it's dependence management, whether it's cardiovascular benefits, and so on. This is more about what is the trajectory of the growth rate. Yeah, I wouldn't think about this in peak. yeah i wouldn't think about this in peak Obesity is probably the ultimate chronic disease. obesity is probably the ultimate chronic disease It's like being a drug addict and having drugs around you every day, and part of which you have to take. it's like being a drug addict and having drugs around you every day and part of which you have to take I don't see a peak to GLP-1 sales. i don't see a peak to glp-1 sales There will be a different mix of autoinjectors, pen, oral formats. there will be a different mix of autoinjectors pen oral formats Plus, you can't go spend a week without a new indication being called out, whether it's dependence management, whether it's cardiovascular benefits, and so on. plus you can't go spend a week without a new indication being called out whether it's dependence management whether it's cardiovascular benefits and so on This is more about what is the trajectory of the growth rate. this is more about what is the trajectory of the growth rate

Speaker 3: For the Annex 1 compliance, I mean, how should we think about that? For the Annex 1 compliance, I mean, how should we think about that? for the annex 1 compliance i mean how should we think about that

Speaker 5: Yeah, we've got a nice pipeline right now. Customers are coming with Aptar, and they need to be fully compliant with. Yeah, we've got a nice pipeline right now. yeah we've got a nice pipeline right now Customers are coming with Aptar, and they need to be fully compliant with. customers are coming with aptar and they need to be fully compliant with This is part of our investment, what we have done in the last years, not only to develop new technology capacity around the world, but also being in line with the Annex 1 to be fully compliant. We see a nice pipeline. I think that's going to be an interesting, I would say, growth driver for pharma injectable. This is part of our investment, what we have done in the last years, not only to develop new technology capacity around the world, but also being in line with the Annex 1 to be fully compliant. this is part of our investment what we have done in the last years not only to develop new technology capacity around the world but also being in line with the annex 1 to be fully compliant We see a nice pipeline. we see a nice pipeline I think that's going to be an interesting, I would say, growth driver for pharma injectable. i think that's going to be an interesting i would say growth driver for pharma injectable

Speaker 6: Yeah. Again, there also, I wouldn't see it as a peak. Once you know or are practicing a better way of doing things, meaning a safer way, a more sterile way, there's no reason to go back. Yeah. yeah Again, there also, I wouldn't see it as a peak. again there also i wouldn't see it as a peak Once you know or are practicing a better way of doing things, meaning a safer way, a more sterile way, there's no reason to go back. once you know or are practicing a better way of doing things meaning a safer way a more sterile way there's no reason to go back

Speaker 3: We think about what you've done over the past few years is kind of build out four different things. You kind of updated your R&D facilities, I believe, both in the U.S. and in Europe. We think about what you've done over the past few years is kind of build out four different things. we think about what you've done over the past few years is kind of build out four different things You kind of updated your R&D facilities, I believe, both in the U.S. and in Europe. you kind of updated your r&d facilities i believe both in the u.s and in europe I was wondering if there's need for more CapEx spend in the coming years to meet the potential growth from your different products, or if you think you have enough capacity to meet what's coming. I was wondering if there's need for more CapEx spend in the coming years to meet the potential growth from your different products, or if you think you have enough capacity to meet what's coming. i was wondering if there's need for more capex spend in the coming years to meet the potential growth from your different products or if you think you have enough capacity to meet what's coming

Speaker 6: Yeah. Our CapEx comes really in two forms. One is kind of to build large, sometimes I call them disrespectfully boxes, large new sites. We just built the state-of-the-art large site in China where we hadn't really invested in new facilities since the mid-1990s. We've built a brand new facility for injectables in Normandy and one for beauty in France in the Rhône-Alpes region. We don't see any of those large investments coming up in the coming years. Then comes the second part, which is really additional equipment, additional capacity in the buildings, or adding another wing to a building like we've done in Congress over time to build out facilities. Yeah. yeah Our CapEx comes really in two forms. our capex comes really in two forms One is kind of to build large, sometimes I call them disrespectfully boxes, large new sites. one is kind of to build large sometimes i call them disrespectfully boxes large new sites We just built the state-of-the-art large site in China where we hadn't really invested in new facilities since the mid-1990s. we just built the state-of-the-art large site in china where we hadn't really invested in new facilities since the mid-1990s We've built a brand new facility for injectables in Normandy and one for beauty in France in the Rhône-Alpes region. we've built a brand new facility for injectables in normandy and one for beauty in france in the rhône-alpes region We don't see any of those large investments coming up in the coming years. we don't see any of those large investments coming up in the coming years Then comes the second part, which is really additional equipment, additional capacity in the buildings, or adding another wing to a building like we've done in Congress over time to build out facilities. then comes the second part which is really additional equipment additional capacity in the buildings or adding another wing to a building like we've done in congress over time to build out facilities Those are much smaller investments. Our largest capital investment this year was $5 million or so. Logical increment for us is $2-$3 million. There is plenty of space to create capacity. We have 50 sites around the world. There is no need to build another site. We shut down sites. We make acquisitions. We add some sites. Other than that, for the next few years, we see capital expenditure more to be steady state. As Vanessa said at the Capital Markets Day, for the consumer-facing business, it is kind of mid-single digits of revenue, plus, and for pharma, it is kind of more high single digit, low double digit, depending on the year. CapEx should be pretty conservative the coming years. Those are much smaller investments. those are much smaller investments Our largest capital investment this year was $5 million or so. our largest capital investment this year was $5 million or so Logical increment for us is $2-$3 million. logical increment for us is $2-$3 million There is plenty of space to create capacity. there is plenty of space to create capacity We have 50 sites around the world. There is no need to build another site. we have 50 sites around the world. there is no need to build another site We shut down sites. we shut down sites We make acquisitions. we make acquisitions We add some sites. we add some sites Other than that, for the next few years, we see capital expenditure more to be steady state. other than that for the next few years we see capital expenditure more to be steady state As Vanessa said at the Capital Markets Day, for the consumer-facing business, it is kind of mid-single digits of revenue, plus, and for pharma, it is kind of more high single digit, low double digit, depending on the year. as vanessa said at the capital markets day for the consumer-facing business, it is kind of mid-single digits of revenue plus and for pharma, it is kind of more high single digit low double digit depending on the year CapEx should be pretty conservative the coming years. capex should be pretty conservative the coming years

Speaker 3: You jumped into, or jumped into, but you augmented your pharma business by one. You jumped into, or jumped into, but you augmented your pharma business by one. you jumped into or jumped into but you augmented your pharma business by one I think you did M&A in injectables in 2012. Then you got into active ingredients in 2018 or so. I was wondering if there's another subsegment that might be interesting too that you're not in, I mean, or yeah, how you're doing that. I think you did M&A in injectables in 2012. i think you did m&a in injectables in 2012 Then you got into active ingredients in 2018 or so. then you got into active ingredients in 2018 or so I was wondering if there's another subsegment that might be interesting too that you're not in, I mean, or yeah, how you're doing that. i was wondering if there's another subsegment that might be interesting too that you're not in i mean or yeah how you're doing that

Speaker 6: Yeah. When we look at acquisitions in pharma, it's really, and frankly, for the company as a total, are there additional technologies that we can add to the portfolio that deepen the moat or open adjacencies? For example, we acquired SipNose a couple last year to improve the intellectual property portfolio around and add some additional nasal capabilities or an additional geography. For example, the injectable facility we bought in China that came with a coveted government license, or just a good business that comes with good management that is an adjacency. Yeah. yeah When we look at acquisitions in pharma, it's really, and frankly, for the company as a total, are there additional technologies that we can add to the portfolio that deepen the moat or open adjacencies? when we look at acquisitions in pharma it's really and frankly for the company as a total are there additional technologies that we can add to the portfolio that deepen the moat or open adjacencies For example, we acquired SipNose a couple last year to improve the intellectual property portfolio around and add some additional nasal capabilities or an additional geography. for example we acquired sipnose a couple last year to improve the intellectual property portfolio around and add some additional nasal capabilities or an additional geography For example, the injectable facility we bought in China that came with a coveted government license, or just a good business that comes with good management that is an adjacency. for example the injectable facility we bought in china that came with a coveted government license or just a good business that comes with good management that is an adjacency I mean, we talk a lot about nasal inhalation, but we're also active in dermal drug delivery and ophthalmic drug delivery, or some additional services like the CRO facility we acquired in New Jersey. It is really broadening the business, deepening the moat, something that can do better under Aptar leadership and ownership than it does outside, but always with a keen eye on management. The digital assets that we bought came with management that still works for us happily. The same for the active material business. We want to make sure that one plus one equals three. I mean, we talk a lot about nasal inhalation, but we're also active in dermal drug delivery and ophthalmic drug delivery, or some additional services like the CRO facility we acquired in New Jersey. i mean we talk a lot about nasal inhalation but we're also active in dermal drug delivery and ophthalmic drug delivery or some additional services like the cro facility we acquired in new jersey It is really broadening the business, deepening the moat, something that can do better under Aptar leadership and ownership than it does outside, but always with a keen eye on management. it is really broadening the business deepening the moat something that can do better under aptar leadership and ownership than it does outside but always with a keen eye on management The digital assets that we bought came with management that still works for us happily. the digital assets that we bought came with management that still works for us happily The same for the active material business. the same for the active material business We want to make sure that one plus one equals three. we want to make sure that one plus one equals three

Speaker 3: Gotcha. Final question, because we only have about a minute left here. With what's happened with the stock price, but with what your priorities are, are share repurchases looking more attractive at this point versus maybe some of versus historically what you thought about it? Gotcha. gotcha Final question, because we only have about a minute left here. final question because we only have about a minute left here With what's happened with the stock price, but with what your priorities are, are share repurchases looking more attractive at this point versus maybe some of versus historically what you thought about it? with what's happened with the stock price but with what your priorities are are share repurchases looking more attractive at this point versus maybe some of versus historically what you thought about it

Speaker 6: Vanessa, why don't you? Vanessa, why don't you? vanessa why don't you

Speaker 1: A little bit attractive, I would say. A little bit attractive. Yes, indeed. We have leaned in a lot more on share repurchases this year. We had done about $190 million or so, 1.3 million shares by year to date to the end of Q3. What we did say was that we would look to essentially exhaust the remaining authorizations. We have got about $273 million left in our board authorized pool for share buybacks. Certainly, we are executing against that given the current conditions. A little bit attractive, I would say. a little bit attractive i would say A little bit attractive. a little bit attractive Yes, indeed. yes indeed We have leaned in a lot more on share repurchases this year. we have leaned in a lot more on share repurchases this year We had done about $190 million or so, 1.3 million shares by year to date to the end of Q3. we had done about $190 million or so 1.3 million shares by year to date to the end of q3 What we did say was that we would look to essentially exhaust the remaining authorizations. We have got about $273 million left in our board authorized pool for share buybacks. what we did say was that we would look to essentially exhaust the remaining authorizations. we have got about $273 million left in our board authorized pool for share buybacks Certainly, we are executing against that given the current conditions. certainly we are executing against that given the current conditions

Speaker 6: I mean, usually, my cardinal rule is never opine on the stock price, but I think the reaction to the Narcan pullback feels a little bit overdone. I agree. I mean, usually, my cardinal rule is never opine on the stock price, but I think the reaction to the Narcan pullback feels a little bit overdone. i mean usually my cardinal rule is never opine on the stock price but i think the reaction to the narcan pullback feels a little bit overdone I agree. i agree

Speaker 1: We buy back shares. We buy back shares. we buy back shares

Speaker 6: We buy back shares. We buy back shares. we buy back shares

Speaker 3: All right, guys. Thank you very much. Thank you, everyone, for sitting here. We really appreciate it. All right, guys. all right guys Thank you very much. thank you very much Thank you, everyone, for sitting here. thank you everyone for sitting here We really appreciate it. we really appreciate it

Speaker 6: Thank you. Thank you. Thank you. thank you Thank you. thank you

Speaker 1: Thank you. Thank you. thank you