All right. Good morning. Thanks everyone for joining the kickoff session of RBC's 2021 Global Healthcare Conference. I'm Sean Dodge, the Healthcare IT and Pharma Services Analyst here at RBC. I'm pleased to be joined by Michael Petras, who's the Chairman, Chief Executive Officer of our first presenting company of the day, Sotera Health, and their CFO, Scott Leffler. Special thanks to both of you for being here. Michael's going to give us about a nine, 10-minute overview of the company, and then we'll move into the fireside portion of our presentation here. Michael, I'll hand it over to you. Yeah. Great, Sean. Thank you. I appreciate you having us out this morning. Welcome everybody. I'll give you a quick overview of the company. Some of the statements I'll make today may be considered forward-looking statements. Please refer to our SEC filings for a description of the risk and uncertainties that could change our actual results. It could materially differ. The company assumes no obligation to update the forward-looking statements. I'll discuss also non-GAAP financial measurements, including adjusted EBITDA, which a reconciliation can be found in this presentation. A copy of this presentation will be on our website, soterahealth.com. I'll spend a couple of minutes on this slide for some of you may not be as familiar with our company. Sotera Health, we view our mission as safeguarding global health through sterilization services, lab testing, and advisory services. What we do on the left-hand side of the page, starting with sterilization services, we have two businesses that make up this part of our company, and that is Sterigenics and Nordion. What we do in Sterigenics is we provide terminal sterilization. Med device pharma companies will make the product, they'll package it up, they'll ship it out, it'll go through one of our facilities around the world, and we'll provide terminal sterilization, through three key modalities, ethylene oxide, E-beam X-ray, or Cobalt-60. This is a service business. Our second business in this grouping is Nordion. Nordion is the only business of our three that is a product business. In this business, we supply Cobalt-60. We're the world leader in supplying Cobalt-60, and as I mentioned, that is one of the key modalities for how you sterilize. We sell Cobalt to Sterigenics as well as other competitors around the world. It's a key ingredient, if you will, that's used for sterilizing products in the terminal sterilization process. By having Nordion, we're the only vertically integrated player in the world for gamma radiation or Cobalt-60 irradiation. Our third business is Nelson Labs. This is a service business here, and what we do is, in this business, is we work with the med device and pharma companies to test to make sure their products are safe and they meet the regulatory requirements. All three of these businesses are highly regulated and in many cases, government-mandated mission-critical services. We have blue-chip customers with multi-year contracts, in many instances, three to five-year contracts. We have over 60 facilities around the world. We have deep expertise in our teams and regulatory and technical know-how. We have significant levers for growth, both organically and inorganically. Culture really matters. In our company, we really assess our people on the values, and the culture is such a foundation for the company long term. What does all this lead to? It leads to a company that's grown revenue every single year since 2005 as Sotera Health. We've grown every single year our top line. Our adjusted EBITDA margins are 50%+. We have strong cash flow generation, and we're well-positioned to serve the global healthcare market. What's really unique about this asset is we do not sell to GPOs. We are not tied to payer reimbursement. I hope you can tell why we're so excited about this company. We think it's such a unique asset. On this next page here, this will just give you a flavor of some of the products that we go ahead and serve with our customers. Many of these products pictured on this page, I won't go into great detail on this, but many of these products on this page fall through our shop in one of our service offerings, either in our sterilization or in using, in many instances, Cobalt-60 that comes from Nordion, and then also testing that we do perform over at Nelson Labs. You can see across the med device and pharma side, we play a critical role in helping get these products to market. If you look at our financial performance historically, what you see here on this page is 2018 and 2019, we've had strong revenue growth and adjusted EBITDA and EPS growth. We continue to invest in organic growth opportunities in additional capacity and expansion projects, which will continue to keep up with the demand for services that our customers are asking for. We've got several levers that we provide, and take on to help us drive adjusted EBITDA. Really, if you look at our margin expansion, we're 450 basis points of improvement since 2018, and we continue to focus on our adjusted EPS, as we look at all our costs across our banking needs. If you look at the first quarter we just announced last week, we had a strong start to the year. We had growth. We reiterated our guidance for the total year. We said revenue would grow for the total year 9%-12% on top line, which would be the $890 million-$920 million in revenue. Our EBITDA growth would be up 11%-16%, is the guidance that we provide in the outlook, to $465-$485. As you can see on this page here, we had a strong first quarter, revenue up 13%, EBITDA up 15%, and adjusted EPS up 80%. We believe it's a really unique asset because of the fact that we have a strong financial profile, the revenue growth that I mentioned every single year since 2005, our margin rates, the barriers to entry in this business. We've got a track record. We have expertise. We have scale. We have a large and growing addressable market of $33 billion. A large portion of that is in our lab services, which is about $29 billion. Our customers trust us in the size and scale we bring with our customers around the world. We do business with 40 of the top 50 med device companies in the world and eight of the top 10 med device companies around the world. We've been able to execute on M&A. We've done two transformational deals where we bought Nordion and Nelson over the last several years, and then eight tuck-in acquisitions. We're really optimistic, Sean, about where we sit with supply chain, the value we can bring across healthcare. I just thought I'd give you a couple of minutes of an overview, and I'm happy to answer any questions that you'd like to cover. Great. Yeah, thank you. Where I wanted to begin, you all just reported Q1 results late last week, maybe starting with a recap there. You mentioned a strong quarter, but there were still some lingering COVID-related headwinds in the Sterigenics business. Conversely, some real nice tailwinds on the Nelson Labs side. Give us a quick overview of the visibility and maybe the confidence you have in the businesses, maybe a continued normalization on the Sterigenics side. Yeah. How do you maintain the momentum on the Nelson side? Yeah, great. I'll walk you through all three businesses from a COVID impact perspective. Sterigenics, I would say that business probably felt the most negative impact in 2020 from COVID, just because of elective procedures shutting down. We saw a gradual improvement in volumes in the Sterigenics business throughout the first quarter. We expect a gradual improvement in the remainder of the year. We don't think it's going to come jumping right back in a strong manner to start the second quarter. We see this continued graduation of volumes. I would tell you the U.S. is doing a little bit better than we're seeing in Latin America and Europe. Overall, we feel pretty confident about our ability in Sterigenics to see those volumes ramp up. On the Nelson Labs side, this is a business that saw the validation lines, more complex testing slow down, the new products, the R&D. We saw some of that slow down during the COVID time period, and not that we're completely out of COVID pandemic at this point in time. We did see a pickup in PPE testing. Let me just give a little context on that. We always did PPE testing prior to COVID. What this does is we help customers with masks and gowns, for example, in helping them get those products to market and make sure they're safe and meet the regulatory requirements. When COVID hit in early 2020, we started to see that volume ramp up in a pretty significant way. In some of our other tests, we're feeling the impact of COVID and the volumes coming down. We see that the PPE testing is starting to slow and come down, but we believe it's going to be over the historical levels that we had prior to COVID. We'll see it normalize at a level above that, but it won't be to the level it was during the peak of COVID. We're also seeing our other volumes ramp up, particularly in the validation area. We're starting to see some of our more complex testing starting to ramp up. We expect that to happen on the PPE coming down. Overall, we feel pretty confident about our ability to offset that with other volumes we're going to see coming in the business. The last business I'll talk about is Nordion. Basically, Nordion, we haven't had orders canceled or anything of that nature. What really has happened is we just had geographic challenges, right? We'd be able to ship into Germany this week, but not into France, and maybe you can't ship in the U.K., but you can ship into Italy. The team has done a phenomenal job of working through the logistical challenges, but we're able to get the cobalt out and around the world where we need. We've had some timing delays, but no order cancellations. I feel that business is pretty much normalized, just with some gymnastics that Terry and the logistics team have done a phenomenal job in really meeting the customers' needs during this time. We're getting closer to the new Medical Device Regulation becoming effective in Europe. It's still supposed to happen in just a little over a week now. We're kind of on the doorstep there, do you have any better sense of how this might impact you all? Initially, this was anticipated to be a tailwind more for the lab business. Could this be something that provides a little bit of a tailwind for Sterigenics too? No, we're still optimistic that this will be a nice opportunity for the team at Nelson Labs. They're viewed as an authority in that med device testing space, and this will create more opportunity. We don't see a huge uplift in the Sterigenics side of the business. We still are pretty confident, though, that we'll see a rise in volumes over time with the Nelson Labs business. I guess a big part of the Nelson Labs thesis was around the cross-selling opportunity. Maybe you could talk a little bit more about that. How big is the opportunity on the Nelson Labs side? I guess the level of activity you're seeing there, how content are you with that? Any changes you're making to drive acceleration in cross-selling? Yeah. Being involved in this kind of process in the past, my days at General Electric when I was involved in leading big cross-selling efforts across all the GE businesses for the Olympics and some of the big projects around the world, I know it takes time from a cultural perspective to drive this. I think we're making nice progress as a team. Remember, about 40%, actually 40% of Nelson Labs business is really assurances. There's some natural linkage already with Sterigenics. What we're really focused on here, Sean, is driving improved processes for our customers. It could be streamlined end-to-end. We can reduce cycle times, turnaround times. Our customers see a real value proposition coming to work across Sotera Health and Nelson Labs and Sterigenics. We're working on a lot of things around the handoff. I'll give you an example, as people are working around ethylene oxide and are looking at new cycles. How do we do quicker validations in conjunction with the Sterigenics business designing the new cycles, and then the Nelson Labs team doing the validation on that? What we want to do is figure out how to make it easy for these customers to be able to work with us across that site. We're doing stuff on quarterly dose audits that help customers as well. We're just trying to be predictable and reliable here. I don't think you're going to turn around tomorrow and see our numbers way outperformed because of some cross-selling effort. This is just how do we continue? We got about an 85% customer satisfaction rate in both Sterigenics and Nelson. How do we take that even higher? That's what we're trying to do and create a unique value proposition for our customers. You talked about cross-selling being a little bit of a process. Mechanically, how does that happen? Are you displacing an incumbent vendor? Maybe just walk us through, what does the cross-selling process look like? Yeah. First of all, we've got a common CRM system across our enterprise for the Nelson and Sterigenics team. They're able to have visibility to opportunities that are coming up, where we have joint account responsibility in some areas. What you have is if a customer's working on the early front end of that value chain and supply chain with Nelson Labs, we may have some visibility there that could help inform the Sterigenics team about the sterilization needs. In many cases, this will be a new product coming out. It could displace somebody that was doing work with that, a previous lab in the past, or it could just be the incremental volume is moving over to us in this particular opportunity. What we try to do is coordinate it so the touch points are aligned within the customer, and also our sales teams are aligned around these opportunities. Okay. One of the accomplishments you all highlighted is just the progress you've made diversifying the client base, kind of the end market on the lab side. You've had a lot more exposure to the pharmaceutical industry. Just talk a little bit about that and what that kind of opens up for you going forward. Yeah. We spend time every year, just about this cycle of the year, April, May, June, July, really looking at our three-year strategic plans for each of the business units. Back in 2016 and in 2017, we really started segmenting our end markets, and we felt the opportunity was pretty robust for us to pursue the pharma side. The Nelson Labs business was really the biggest opportunity. Not that we didn't have that similar type opportunity in Sterigenics, we really set a focus on that. We've done a couple strategic tuck-ins. We've been able to basically double the percent of total business that Nelson Labs does in pharma from where it was when we acquired that business in 2016. As I mentioned in my opening, we have a $33 billion TAM across Sotera Health, $29 billion of that is in the lab services side, and a large portion of the vast majority is in pharma services. We see opportunity for us to continue to expand our presence there with our customers. You've done a great job thus far of expanding margins in the Nelson Labs business. If we think about the pathway forward and the runway for more, excuse me, margin expansion, is it dependent on revenue growth and operating leverage, or do you think there's still a lot of opportunities to enhance efficiency, enhance productivity, are there still costs you can take out? I want to make it clear, this wasn't about ripping a bunch of costs out and making numbers. This is about growth and serving the customer and making sure we're doing it as efficiently as possible. When we bought that business in 2016, it was doing margins in the mid-20s, and now we're close to 40%+ margins in that business. Really, what we've done there is really just professionalize it, create standards around giving tests, how much labor should be deployed around that, really kind of setting the focus up around productivity and operational excellence and things like that is where we're really focused. We get some operating leverage with the volumes as well as price that falls through in that P&L. Really, I want to make sure people understand, this isn't about ripping a bunch of costs out to make bottom-line numbers. This is about how to get better as this company continues to grow and making sure we're able to address turnaround times and quality and service that our customers expect in that segment. Okay. Maybe turning to the Sterigenics side. If we start high level there's still about 40% of the global sterilization services are handled in-house. There had been a steady, kind of slow shift towards outsourcing. How do you see that progressing going forward? How much runway do you think there remains in this kind of shift from in to outsource? Today, we estimate about 43% is in-house. We've seen a gradual move to outsourcing over time, over the last several years. I don't think you're going to wake up tomorrow and see those numbers swing materially in the short term. Over time, we think there's an opportunity for that to continue to be pushed to outsourcing. Just that's our core business. That's what we do. We don't make products. That's not our job. We are really focused on providing sterilization services. I think customers, as regulations increase and that area becomes more complicated, we think there may be more opportunities for more outsourcing of that service. Again, we haven't assumed big numbers shifting in a short period of time. We think over time, gradually, there'll be a couple points over the next three to four or five years. Okay. We talked earlier about the impact that COVID was having on the Sterigenics business. If we think about the capacity you have there, and utilization, give us a sense of where you're at right now across your footprint as far as kind of a capacity utilization goes, how much of an impact did COVID have? How much room do you have to grow kind of within your current footprint, kind of setting the capacity expansion projects you have right now aside? Yeah. We were probably pre-COVID around that 80+% kind of range. Today I'd say we're about 73%, 75% in the Sterigenics side. Mike and the team are continuing to look at capacity utilization and all the work that we're doing around operational excellence and streamlining our processes and looking at how to get more out of our existing capacity. That all is very helpful. I'd say right now, we're probably looking at 73%-75%, below where we were pre-COVID. We see opportunities for that continue to utilize that capacity as volumes ramp up. Okay. You've got, I think you've highlighted six on the Sterigenics side, six capacity expansion projects you're working on that are anticipated opening here in 2021. How much, if we think about the increase in your revenue generating square footage, your revenue generating capacity, give us a sense of how much footprint this adds. How much does this increase that spend? Yeah. Sean, we don't get into particulars around volumes for incremental capacity. A couple things I think are important for you to understand in the broader investment community is we target 20%+ IRRs when we do these programs. That's a kind of threshold that we like to work towards on all these. That doesn't mean every single program has to be that, we try to target that area. The other thing I would tell you is before we put this capacity in the ground, we like to get 40%-50% of that volume committed by customers before we start building and constructing that. That's general guidelines that we work with and towards. I would tell you that as we look at these opportunities, we look through that lens and making sure that we're there to take care of the customers' demands that they have. Okay. Across your Sterigenics footprint, you're also making some efforts to upgrade for your EO emissions and recapture even more than what the government mandated amounts are. Give us a quick overview of that. How's that progressing? How many sites have you upgraded and what are the timelines for the remainder? Yeah. We'll be doing that over the next several years. We don't control that timeline necessarily. A lot of that also relies on local permitting, either environmental air permitting or construction permits. We are working through our network here in the U.S., as you referenced. One that's out there that everyone knows about is Atlanta. We put three big improvements in Atlanta. Double scrubbing the air, a negative pressure in centralizing the discharge points. We will use that type of framework across all our facilities in the U.S. Those are progressing pretty well, but it does take time as we progress through each of our facilities. We have a couple of them that are in process and nearly complete today. We have a few right behind it, then we have others that are earlier stage that are more in the design work at this point in time. We're working with our regulators across our network to pull that together in a timely fashion. As you referenced, we feel like we're going to continue to lead the industry and far exceed the expectations of the regulations. Okay. We'll leave Sterigenics aside for a moment and move on to Nordion. If we think near term here, in 2020, you benefited there from a favorable price in Cobalt-60 supply mix. Maybe just give us a sense how we should be thinking about that mix to evolve in 2021 and beyond. Yeah. I would tell you, all three of our businesses generate about 3%-5% price per year. A lot of these are contractually built in. I would tell you, Nordion is in that same range of 3.5%-5% a year in price that they're able to realize. When we look at the cobalt supply, depending on where the harvest comes from, what utility, at what given time, we may see some fluctuations in margins. We saw some good guys at that in 2020. We will, at times, see bad guys in mix, just like you will on sales mix. Overall, we're confident in our ability to expand margins in margin dollars in 2021 in the Nordion business. All three of our businesses, for that matter, will be expanding in 2021. Okay. You mentioned the benefits on the price. Maybe talk a little bit about the work you're doing there to increase your cobalt supply over time. Yeah. That's a capital investment that we've called out. This is a long-range business for us, very predictable, very stable. What we're working on is long range cobalt supply, 2026, 2030, 2035, 2040. We're making investments to continue to make sure there's ample supply of cobalt for the long run. We're working with utility partners around the world and utility suppliers to make sure that we have a steady stream of cobalt supply. When I joined this business, our predominant supply of cobalt was from Canada and a little bit from Russia. We continue to rely on both those sources. In addition to that, we buy cobalt from India, we buy it from China and other parts of the world in addition to Canada and Russia. As we look at other development opportunities, we look to expand that base. We're really optimistic about where we're going with the cobalt supply, which is so important because a large percent of the terminal sterilization market relies on cobalt. We feel we're uniquely positioned because of the fact we're the only globally vertically integrated cobalt irradiation business in the world. Okay. Maybe in our last minute or so here. Post-IPO, leverage has come down quite a bit. Michael, you mentioned a series of tuck-in acquisitions you all have done over the last couple of years. Give us just a quick overview or maybe your thoughts on M&A tuck-ins, where you think some of the bigger opportunities are, where you're going to focus capital deployment. Yeah. Sean, you referenced leverage. I wanted to touch upon that. When we were coming on IPO, we were at seven times leverage. We committed we would be in a two to four times leverage over the long term. Right now, we finished the last quarter at 4.1, we're well on our way with the targets that we committed. We continue to be curious, inquisitive around acquisition opportunities. We see opportunities across all three of our businesses. Nelson probably having the most, not exclusively. We feel that we're going to be able to continue to invest in this business for organic growth through leveraging and strategic M&A. We feel we're pretty well positioned in this area. All right. Great. Well, we're out of time, so we'll leave it there. Again, Michael, we appreciate having you here, and good luck. Good. Hey, Sean, thanks for your time and thanks for having us this morning. Have a great day. Bye-bye