Avantor, Inc. (NYSE:AVTR) Q4 2022 Earnings Conference Call February 3, 2023 8:00 AM ET Company Participants Christina Jones - Vice President of Investor Relations Michael Stubblefield - President and Chief Executive Officer Thomas Szlosek - Executive Vice President and Chief Financial Officer Conference Call Participants Patrick Donnelly - Citi Rachel Vatnsdal - JPMorgan Luke Sergott - Barclays Vijay Kumar - Evercore ISI Michael Ryskin - Bank of America Dan Brennan - Cowen Tejas Sevant - Morgan Stanley Dan ...

Financial Data and Key Metrics Changes - The reported revenue for Q3 2022 was $1.857 billion, slightly above the guidance provided earlier [11] - Core organic revenue growth was 7.8%, driven by strong performance in biopharma and advanced technologies [7][11] - Adjusted EBITDA was $384 million, reflecting over 100 basis points of margin expansion and approximately 13% growth from the previous year [11][12] - Adjusted earnings per share came in at $0.34, with adjusted net income growing about 9% after adjusting for foreign exchange [13] Business Line Data and Key Metrics Changes - Bioproduction business achieved approximately 30% core organic revenue growth [7][14] - Advanced technologies and applied materials saw double-digit core organic revenue growth [18] - Proprietary materials and consumables offerings also achieved double-digit core organic revenue growth [18] Market Data and Key Metrics Changes - Americas region, representing about 60% of annual global sales, achieved 8.8% core organic revenue growth [15] - Europe, accounting for approximately 35% of annual global sales, achieved 4.8% core organic revenue growth [16] - EMEA region, representing about 5% of annual global sales, grew 15.1% on a core organic basis [16] Company Strategy and Development Direction - The company remains focused on executing its long-term growth strategy, including advancing a robust innovation pipeline and investing in manufacturing capacity [8][9] - Capital allocation strategy prioritizes deleveraging and optimizing the performance of recent acquisitions [20][22] - M&A remains a key part of the long-term strategy, but the company is cautious in the current macro environment [70][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment and driving long-term growth despite headwinds from European macro conditions and inventory destocking [9][28] - The company anticipates approximately $400 million in revenue from 2021 acquisitions for the full year [22][26] - Management reiterated a long-term growth target of 4% to 6%, despite short-term challenges [39][60] Other Important Information - The company generated free cash flow exceeding $219 million in the quarter, facilitating over $800 million in net debt reduction [7][13] - Adjusted net leverage declined to 3.6 times EBITDA, down from 4.2 times at the beginning of the year [9][13] - The company plans to retire COVID-related revenue from its projections for 2023, which will impact organic growth [29] Q&A Session Summary Question: Can you elaborate on the European macro and excess inventory? - Management noted that the European business performed well, with mid-single-digit growth, but acknowledged pockets of softening in industrial exposure and laboratory consumables [34][36] Question: What is the outlook for core organic growth in 2023? - Management confirmed that the long-term growth target of 4% to 6% remains intact, despite potential headwinds from COVID and foreign exchange [39] Question: How will pricing and margins be affected in 2023? - Management expressed confidence in passing through inflation costs and maintaining margin expansion, targeting 50 to 100 basis points [45][47] Question: What steps are being taken to improve the performance of recent acquisitions? - Management highlighted organizational changes and a focus on enhancing accountability and operational oversight for recent acquisitions [25][52] Question: What is the expected interest expense for Q4 and 2023? - Management indicated that interest expense for Q4 is expected to remain contained, with a focus on deleveraging to manage rising interest rates [68][69] Question: What would trigger more active M&A in the next 12 months? - Management stated that while M&A remains a priority, the current macro environment and debt market conditions are factors in the timing of future deals [72][74]

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 ...