Avantor, Inc. (NYSE:AVTR) Q2 2022 Earnings Conference Call July 29, 2022 8:00 AM ET Company Participants Christina Jones - Vice President of Investor Relations Michael Stubblefield - President, Chief Executive Officer & Director Thomas Szlosek - Executive Vice President & Chief Financial Officer Conference Call Participants Vijay Kumar - Evercore Dan Brennan - Cowen Luke Sergott - Barclays Rachel Vatnsdal - JPMorgan Tejas Savant - Morgan Stanley Matt Sykes - Goldman Sachs Paul Knight - KeyBanc Jack Meehan - ...

Financial Data and Key Metrics Changes - The company achieved total revenue of $1.95 billion in Q1 2022, representing a 9.2% reported growth rate, with core organic growth at 7.3% [19] - Adjusted EBITDA grew by 16.5%, with an adjusted EBITDA margin expansion of approximately 140 basis points to 21.7% [28] - Adjusted net income increased by approximately 15%, and free cash flow was about $128 million, up 14% from Q1 2021 [29][18] Business Line Data and Key Metrics Changes - Biopharma, which represents over 50% of annual revenue, experienced high single-digit organic growth, including over 20% growth in bioproduction [24] - Advanced technologies and applied materials achieved high single-digit organic revenue growth, driven by proprietary materials for semiconductor manufacturing [27] - Education and government saw a mid-single-digit organic revenue decline, primarily due to reduced COVID-related demand [26] Market Data and Key Metrics Changes - The Americas region, accounting for approximately 60% of annual global sales, achieved 6% organic revenue growth [21] - Europe, representing about 35% of annual sales, achieved 2.6% organic revenue growth, with bioproduction growing almost 30% [22] - EMEA, which represents approximately 5% of annual sales, achieved 11.7% organic revenue growth [23] Company Strategy and Development Direction - The company remains focused on long-term growth strategies, including investments in capacity and infrastructure, with over two dozen manufacturing expansion projects underway [8] - The integration of 2021 acquisitions is progressing well, with expectations to generate around $0.5 billion in revenue for 2022 [30][31] - The company is committed to advancing sustainability through its Science for Goodness platform and plans to release its second sustainability report [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong growth and robust margin expansion despite macroeconomic challenges, including inflation and geopolitical tensions [16][10] - The company anticipates COVID-related headwinds to be in the range of 2% to 3% for the year, but believes the strength of its core business will offset these impacts [54][13] - The order book is growing, with non-COVID orders now comprising approximately 85% of the total, indicating strong underlying demand [55][24] Other Important Information - The company has ceased all sales to Russia, which historically averaged about $5 million per year, and has no cash or working capital exposure in the region [12] - The company is increasing manufacturing and distribution capacity globally to meet customer demands amid supply chain challenges [15] Q&A Session Summary Question: Can we talk a little bit about the pricing environment? - Management noted that historically, about one-third of growth comes from pricing, but due to inflation, they expect this to shift to two-thirds from pricing [45] Question: Can we get clarity on the performance of your deals? - The company reported $117 million in revenue from acquisitions in Q1, with Masterflex contributing roughly $70 million and Ritter about $50 million [51][48] Question: Are you still expecting to achieve similar growth rates in Q2? - Management confirmed confidence in achieving similar growth rates in Q2 despite tougher comps, supported by strong order books and pricing implementation [60] Question: What is the expected impact from the rising interest rate environment? - The company expects to maintain its original 2022 interest expense estimate of approximately $260 million despite rising rates due to its debt management strategy [34] Question: Can you provide additional color on the size of the backlog on the base business? - The order book for bioproduction continues to trend at roughly a full year's worth of demand, indicating strong underlying demand [64]

Avantor, Inc. (NYSE:AVTR) Q4 2021 Earnings Conference Call February 4, 2022 7:30 AM ET Company Participants Tommy Thomas - Vice President, Investor Relations Michael Stubblefield - President and CEO Tom Szlosek - Executive Vice President and CFO Conference Call Participants Derik de Bruin - Bank of America Vijay Kumar - Evercore ISI Dan Brennan - Cowen Jack Meehan - Nephron Research Tejas Savant - Morgan Stanley Patrick Donnelly - Citi Matt Sykes - Goldman Sachs Dan Leonard - Wells Fargo Operator Good morni ...

Financial Performance - Fourth quarter organic revenue grew by 2.5%, driven by Biopharma and ATAM, with core growth at approximately 4.6% and COVID-19 headwinds of approximately 2.1%[8] - Fourth quarter adjusted EBITDA increased by 15.6%, reflecting mix, inflation management, and productivity, with over 150 bps margin expansion, including approximately 90 bps from M&A[8] - Fourth quarter adjusted EPS grew by 21.4%, driven by execution and benefits from interest and tax initiatives[8] - Full-year 2021 organic revenue growth reached 11.3%, exceeding initial guidance of 4-7%[9] - Full-year 2021 adjusted EPS growth was 57.7%, surpassing initial guidance of approximately 30%[9] - Full-year 2021 free cash flow was $920 million, exceeding initial guidance of approximately $800 million[9] Strategic Initiatives and Outlook - The company closed the acquisition of Masterflex, expanding its single-use offering for bioproduction workflows[7] - The company launched LC/MS consumables from Agilent Technologies to enhance workflow solutions[7] - Initial 2022 guidance includes organic revenue growth of 4-6% and reported growth of 7-9%[23] - The company anticipates adjusted EBITDA margin expansion of over 125 bps in 2022, approaching 21%[23] - The company projects 2022 adjusted EPS to be in the range of $1.45-$1.53, representing a reported growth of 10-16%[23]