AptarGroup, Inc.

Ladies and gentlemen, thank you for standing by and welcome to APTAR's 2020 Second Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Introducing today's conference call is Mr. Matt Della Maria, Senior Vice President, Investor Relations and Communications. Please go ahead, sir.

Thank you and welcome, everyone. Participating on our call today are Stephan Tanda, President and Chief Executive Officer, and Bob Kuhn, Executive Vice President, Chief Financial Officer and Secretary. You can find a copy of our press release as well as a slide presentation file that summarizes our results on our website. If you are following along on the website, you can advance the slides by hovering over the presentation screen and clicking on the arrows on the right and left. We will also post a replay of this conference call on our website. Today's call includes some forward-looking statements. Please refer to our SEC filings to review factors that could cause actual results to differ materially from those projected or contained in the forward-looking statements. APTAR undertakes no obligation to update the forward-looking information contained therein. I would now like to turn the comments call over to Stephan.

Thanks, Matt, and good morning, everyone. Thank you for joining us. Let me start by expressing my hope that you and your families are continuing to do well and staying safe during this difficult time. I would also like to take a moment to thank our global workforce for the tremendous dedication and commitment they have shown throughout this pandemic. I am extremely proud of how the entire organization has risen to the challenge so that we could maintain our production of critical drug delivery and dispensing systems for patients and consumers around the world. Before I comment on the results, I would like to share a few updates related to COVID-19, starting on slide three. We are proud to live up to our purpose and responsibility to society, and as previously shared, we are an essential supplier to several critical industries, including pharmaceuticals and consumer products. Our teams are further motivated by the many expressions of gratitude by our customers for honoring our commitments to them. To that end, we are constantly adapting our approach, and we recently issued new remote and flexible work guidelines to support our people and to ensure the minimum number of essential onset employees during this time. We're also thinking of what's coming next, and we have formed several work teams to address the future of work including the future of customer engagement in the new normal of the post-COVID-19 era. Turning now to slide four, you will see but a sample of our global solutions which are critical to society today. Our drug delivery, dispensing, sealing, and active packaging solutions can be found on a number of medicines, sanitizers, cleaners, food, and beverage products. Turning to slide five, I would like to offer a few comments on the quarter. Our pharma business delivered another strong performance. Core sales grew in our injectables, consumer healthcare, and active packaging businesses, offsetting declines in prescription, which faced a challenging comparison to the very strong quarter two of last year. The pharma team continues to engage with customers and evaluate potential opportunities related to COVID-19. The situation is very fluid, and it is difficult to say which drugs will eventually be approved and when. At the same time, it is very reasonable to expect that we will benefit in line with our market share from the rise in injectable business to be expected by the coming wave of COVID-19 vaccines. We expect to also benefit from increased demand for traditional vaccines and therapies that may have been delayed because of the initial crisis. Our pharma segment is expected to remain a reliably growing business during this pandemic as we are well diversified across different healthcare therapies and patient end-users that are not COVID-19 related. Now, I would like to share a few recent U.S. FDA approvals featuring our technology. Our active material sciences technology is featured on an implantable rechargeable device used to treat urinary and bowel dysfunction by Axonix modulation technologies. Our technology helps to protect key elements inside the device. The second recent US FDA approval is for new drug application, Chimadi, which features our multi-dose nasal pump for the first and only nasally administered treatment for the relief of symptoms of acute and recurrent diabetic gastroparesis. This is another good example of a unique nasal treatment option that, unlike oral medications, bypasses the diseased gastrointestinal tract, allowing the drug to enter the bloodstream directly. Turning to a recent eye care product introduction, our abdominal squeeze dispenser is featured on allergy, anti-inflammatory, and dry eye products from Synthetis, part of Abbott in Latin America. Now turning to beauty at home, the beauty market continues to be quite challenging even though our shipments increased in June relative to the first two months of the quarter, related to the reopenings of several countries, including the U.S. Demand for hand sanitizers and cleansers remained strong. Because of this, we grew sales to the personal care market over the prior year. I would also like to highlight that our spray pump is featured on a line of Suave hand sanitizer sprays by Unilever. We also donated 50,000 of these pumps to support Unilever's United for America campaign. Our pumps and closures are also featured on numerous hand sanitizer products around the world, and we are investing in new tools, molding equipment, and machines to meet the demand for pumps during this time. Our closure and simply squeeze valve was chosen by Dial for their innovative body wash in an easy squeeze stand-up pouch. Our technology provides controlled drip-free dispensing, even when the flip-top is open. This product is available for purchase on Amazon. Continued flexibility is important to our customers, and we are maintaining a state of readiness for the upturn. We have operating overhead costs that we must absorb while we are reducing some labor, travel, and other costs. Turning now to food and beverage, sales were negatively impacted by a decline in on-the-go beverage closer sales due to the COVID-19 crisis. as well as the passing on of lower resin costs to customers and lower custom tooling sales. Turning to product launches, the flexible space continues to have good momentum. Our closure with SimpliSqueeze valve is providing clean and controlled dispensing for a major peanut butter brand, which has just launched in an innovative stand-up pouch. Our dispensing solution also includes an easy-to-remove tamper-evident pull ring, Our closure and simply squeeze valve for inverted packaging are also found on the launch of a new line of signature sauces and condiments by Chick-fil-A in the U.S. In the beverage market, our sports closure is found on a new sports drink by Chaoyang Ren in China. Before I turn the call over to Bob, I would like to share a few additional highlights as shown on slide six. Our Fusion PKG acquisition is off to a great start, and we benefit from their tremendous agility to adapt rapidly to the changing beauty demands, as well as their sophisticated consumer insights and marketing approach. Subsequent to the end of the quarter, we issued our 2019 sustainability report, which highlights our sustainability aspirations, safety programs, societal impact of our products, and community outreach initiatives. We are very proud of our accomplishments, and I encourage you to review that report that is available on our website. We are also pleased to welcome Kimberly Cheney to AFTAR as the Executive Vice President and Global General Counsel. Her breadth of experience across multiple industries as the lead attorney for Global 100 and Fortune 500 companies for global mergers and acquisitions, strategy, innovation, intellectual property, and compliance, will strengthen our leadership team and position us even better to achieve our strategic priorities. With that, I will now turn it over to Bob, who is going to provide additional comments on our results.