Procaps Group, S.A.

Good day, and welcome to the ProCAS Group Business Update Call and Webcast. Today's conference is being recorded. Please note that some statements made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, and or future events including financial projections or future market conditions, is a forward-looking statement. The company's actual future results could differ materially from those expressed in such forward-looking statements due to a variety of risks, uncertainties, and other factors, including but not limited to those set forth in ProCAPS Group's SEC filings. ProCAPS assumes no obligation to update any such forward-looking statements. Please also note that past performance or market information is not a guarantee of future results. At this time, I would like to turn the conference over to Melissa Angenilli, Investor Relations Director for Procaps. Please go ahead.

Thank you. Hello, everyone. Thank you for standing by and welcome to the Procaps Business Update call. We appreciate everyone joining us today. This conference call is also being webcast and a link to the webcast is available on the Procaps IR website. The questions received through the webcast platform will be answered by email. Please note that we filed our earnings release today, which can also be found on the IR website. Please review the disclaimers included in the investor presentation. During this call, non-GAAP financial measures will be discussed and presented. We believe non-GAAP disclosures enable investors to better understand ProCap's core operating performance. Please refer to the investor presentation for a reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measures. Now, I would like to turn the call over to ProCap's CEO. Please, Ruben, go ahead.

Thank you, Melissa. And thank you all for joining us today for our second quarter and six months 2023 results conference call. I wanted to give you an update on how we're doing and where we're headed. While we faced a tough first half of the year, and it is true that we did not do as well as we hoped, the measures that we have started implementing late last year are already bearing the results of our full recovery. We're continuing to work on our value creation and market growth initiatives and speeding up our plans to make the company better in the medium and long term. The toughest issue we have had to deal with this year are the macroeconomic, environmental, and challenge that challenge the entire industry in our region. We are affected by multiple factors, such as rising costs and expenses from inflation, high interest rates and costs of financing, reduced orders from pharma companies in our CDO business due to working capital concerns. We believe these impacts are temporary and we are taking decisive steps to tackle them, adopting strategies to protect profitability despite being unable to fulfill and fully pass all costs to customers on a timely manner. Relief should come later in the year. The steps that we're taking are related to our already announced value creation initiatives and additional operational efficiency efforts, which will strengthen and streamline our operations by the end of this year and absolutely fully in 2024. In our path to full recovery, we believe third quarters will have a better performance than the second quarter of 2023, very much in line with last year's third quarter. And we strongly believe that the fourth quarter of 2023 will be a very strong quarter. When we look at the growth per business lines, We have RX growing approximately 15% in the first half of the year, outgrowing the market by quite a good percentage, especially in countries like Colombia, Ecuador, Honduras, Dominican Republic, and Panama. Political specialties grew approximately 6% in the same period on a constant currency basis. In the Kazan region, we have found excellent growth of approximately 26% in the first quarter of 2023, with new important launches for the second half of the year. We believe our growth plan, including these new product launches and rollouts, combined with our value creation initiatives, will result in strong demand of our aggressive plan to reduce expenses and generate efficiencies will position us for continued growth. We are focused in the medium to long term, committed to refining plans for a resilient organization beyond short-term hurdles. Moving on to slide four, another important driver for our future growth is new products. Our new product launches have been a key driver for our growth. $66 million in revenues for new products in the first half of 2023. A renewal rate that is a percentage of our revenues coming from products launched in the last 36 months was a record of 34% in the first half. We will continue to prioritize investments in our pipeline and business to realize the value of the near and long-term opportunities in front of us. Ramp-up for products launched in the last 36 months is performing quite well. I highlighted several products, such as Adluvel, which is an oncological prostate cancer product, and Dolphin Extra, which is the first ever unigel triple combo for migraine. And this is just one example where you can see our own patented technology is playing an important role in delivering a differentiated product to the marketplace. Now I will pass it over to Melissa, who will share a little about our ESG progress.