Good morning. I'm Dave Windley with Jefferies Healthcare Equity Research. Thank you for joining us here on day three of our Global Healthcare Conference for 2026. Also want to thank Stevanato, the Stevanato Group, for being here with us. Franco Stevanato, the company's CEO, is here to talk with us about the company, and Lisa Miles, the company's lead IR. I think Franco has a couple of slides that he'd like to share as an overview, so I'll turn it over to you first, Franco, and then we'll talk Q&A. Thank you, David, and good morning, everybody. Thank you to you, David and Jefferies, to host Stevanato Group at this important event. I would like to use these two slides in order to show at a high level who is Stevanato, which are the origin, even more which are our ambition in the next years. Stevanato Group is a company that was founded in 1949. We start after the Second World War by my grandfather, Giovanni Stevanato. In particular, starting from 1980, we have started to focalize our competence in order to serve the pharmaceutical industry, because it's a market that, even more in Europe, United States, and today in Asia, has continued to grow because the number of opportunity in the pharmaceutical space is continuing to grow. In the last 30 years, as you can see through this slide, we've tried to build a very sophisticated value proposition in order to meet the requirement of our clients. If you see from the title, we say global leading provider, mission-critical solution. What does it mean? Our glass product that now we are going to propose to our clients in what we call EZ-fill configuration is one of the product that is going to enter in contact with the molecule. On all the industry of the supplier of primary packaging is the most critical product. This is going to require a lot of scientific chemical characteristic in order to not make any change or any risk to the molecule. This is the reason why we call mission-critical. All our glass product is going to be filed and registered in the FDA of the drugs. It's very important, it's fundamental, the quality of the product we sell. I'm going to underline this because today, Stevanato Group produce several billions of product through our 13 site in nine different country. The characteristic number one fundamental that our clients are going to request is the quality of the product. In the last years, what we see, our clients move more and more in what we call injectable space and self-medication. This is the reason why we start from the glass product, like vial, cartridge, and syringes, but we try to enlarge more and more our value proposition in order really to become the true scientific technological partner for our customer. Today, we convert most of our bulk product in what we call ready-to-fill product. We don't sell anymore the bulk product. We sell through washing, siliconization, sterilization, pre-assembly. In fact, if you look on the left, we produce a billion of syringes, vial, and cartridges in the ready-to-fill configuration. More and more our clients were giving us the opportunity to say, "Okay, Stevanato, now you do the glass product, but more and more we're going to use some product like the drug delivery system." We try to develop our proprietary product platform in order to sell together with the glass product also the device like the auto-injector and the pen in the different configuration through our IP. Also in a selective way, we sell in the CMO space. In 1970, we have decided also to develop what we call our engineering division for two big goal. First, because at that time in Europe, there were 200 competitor in 1960, and only in Italy were close to 60 competitor. We didn't have at that time real competitive advantage. We decide to develop all the glass forming technology, vision inspection, and dimensional control, all the different type of coating in order to build an internal competitive advantage. In fact, after 50 years, today the result that we are only competing with one maximum two player worldwide. We are competing with Becton, Dickinson syringes. We are competing with Schott on vials into cartridges. Second, this division has started to better develop also our competency inspection machine and assembly technology in order to not only serve the internal group, but to sell this machine to the pharma company, the same clients that are using our glass product. Why we do this? This help even more to enter in the full intimacy to our clients. In fact, today we are able to build what we call end-to-end integrated offering. When a client's coming to us, we start to serve when the product is in phase II or phase III through our tech center. We have a tech center in Padova, we have another tech center in Boston that we start to engage our collaboration when the molecule's in phase II or phase III. When they go commercial, we are starting to use all hub, our operation that we have spread through the different part of the world. The goal is to become very specialized. Biologic market is growing. There are thousand of molecule that will go through injection, self-medication in the next five, eight years. We want to be always number one or number two in what we do. In fact, today we are market leader worldwide on vial ready-to-fill. We are market leader worldwide on cartridges bulk ready-to-fill, we are second player worldwide on syringes. Where we are looking to be focused and build capacity, competence in next year to come. If you look at the next slide, just to summarize, we have a powerful track record of growth. We were around a EUR 20 million company. Before the IPO, we were a little bit more than EUR 500 million company. Today, at the end of the year 2026, we guided we'll be in the half per part, close to EUR 1.3 billion. Why? We always invest through organic growth to reinforce more our research and development in order to serve to our clients the most sophisticated product. Why? The biologic market is requiring very sophisticated primary packaging for their complex molecule. Today, we have this wide product portfolio in order to be able to continue with them. In 2021, we have decided to list the company in New York. Why? We were facing a lot of growth opportunity from our big pharma customer, but they want to say, "Okay, Stevanato, I want you heavily increase in the capacity for our EZ-fill product, but also even more, we want to become domestic U.S.," because the biologic market is growing. This is the reason why we have decided to list the company. We raised between the IPO and the offering close to $1.2 billion. Practically 70% of this proceed we have totally reinvested in order to build capacity. We approach a heavy cycle of investment from 2021 to today in order to build huge capacity. Today, we are executing, we are ramping up these plans between Europe and United States in order to execute all our commitment that we have. Today, we are facing some strong tailwinds that the biologic market is giving to us, but even more, our big focus really to become the real partner of the biologic space. Q1 2026, we have delivered another strong quarter. The BDS segment grows in double digit. We achieve close to 16% of growth in the BDS segment, and Stevanato Group have growth around 10%. We have a good signal that are presenting, that are confirming that our strategy is good. We continue to growth in high-value product. It is where we are heavily investing since the last year. Overall, I want to summarize, we are in a very nice environment. Biologic industry is growing. There are also additional strong tailwind, like GLP-1 inside of the growth. Growth at Stevanato is laser-focused just to execute, to continue to be partner. We are actively serving more than 23 top global customer. We have portfolio in total of 700 customer worldwide. Great. Thank you for that, Franco. I promise I won't spend the whole time on GLP-1s, I am going to start on GLP-1s. For you, I think GLP-1 was about 21%-22% of revenue in the first quarter, grew greater than 20% year-over-year. We're seeing GLP-1 products, in some cases, transitioning to multi-dose pens, and therefore, the cartridges that would be inside those pens. Is that shifting the mix of demand that you are seeing for your products, toward cartridges, say, away from syringe or vial? Related to GLP-1, we started today, the majority of our revenue that we do on GLP-1 is through our Nexa syringes, David. It's also true that today, our two big originator clients that have started to engage Stevanato also with an incremental opportunity in order to serve through our cartridges ready-to-fill. Based on picture of 2026, syringe is still the dominant primary packaging configuration that our clients is asking for GLP-1, are starting to engage. This would be more one, two, three, four years program to have also a big engagement in order to build heavy capacity for cartridges ready-to-fill. This is to be incremental capacity that we put in place, starting from, we already have existing capacity in the plants of Padova that we have increased this year because we have converted one of our vial ready-to-fill line into cartridges ready-to-fill. Now starting from June, July of this year, we are going to add the first high-speed line for cartridges ready- to- fill in our plants in Cisterna di Latina. Okay. Ready-to-fill, so EZ-fill cartridge- Cartridges in Latina. Latina is the last point. Okay. Dave, you may remember, as far back as our Capital Markets Day, we had been discussing the expansion on ready-to-use cartridges. This has been a project that has been in play for many years as this customer is moving from bulk to ready-to-use configuration on cartridges. Okay. Franco, you mentioned kind of a one to four-year timeframe. Lisa, you just said a project that has been in flight for a while. You've got some capacity that's already moving to cartridges, and you are also, I'm asking, are you also starting new investment, new capacity programs for cartridges that will then be several years out to come in? Correct. Today, if you take our approach on cartridges, we sell cartridges since 1990 in the bulk configuration. Since a few years, through the plants of Padova, we have more and more program on cartridges ready-to-fill, not only related to GLP-1, but also related to many other program on biologic. Today, we are increasing capacity in the plants of Piombino Dese, even more, there is a program to heavily invest capacity in the next year to come in the plants of Latina. Why? If you look our outlook, including the GLP-1, the fact that some our big client is converting their platform from bulk cartridges to ready to fill, the number, the tens of hundred of program that biologics is requiring cartridge ready to fill from 1 ml, 3 ml, 5 ml, 10 ml, it will represent a big tailwinds for Stevanato in the next five, eight years to come. Okay. I didn't have this on my list, but in that regard, the bulk to ready-to-fill conversions, are those Annex 1 prompted? There is two element, Dave. One is that Annex 1 is going to require a more sophisticated quality requirement than certain process, certain pharmaceutical company. Where they are starting to be a little bit old, it's better to buy the new flexible technology like Syntegon, Bausch+Ströbel, or Optima, in order to have this more clean technology. It's also true that in terms of total cost of ownership, there is the tendency of the pharmaceutical company to outsource water for injection, complex clean room, washing, siliconization, and crimping. Because most of the time, the process of this pharma company are strictly connected to the process of filling. It's not efficient, because it's working maybe one shift, because it's linked, connected to the filling. When they are going to outsource to the supplier, we work 24 hours, seven working days. From total cost point of view, it's much more convenient to outsource to the supplier because we can have more productivity, better cost, better quality. Okay. This is going to become a trend on the market, not only related to the Annex 1. Okay Because the customer is going to outsource one non-core competence. Okay. Sticking with GLP-1s, the other thing that, another driver that's happening in the market is some early biosimilar launches for GLP-1s. Are those launching, coming to market in multi-dose pen cartridge formats, single-dose auto-injector formats, and how does that vary by geography? Today, since a couple of years, we are actively in a program of validation with clients and potential new clients, both United States, Europe, and Asia, that are launching their GLP-1 product in both configurations, Dave, into the syringes, into the cartridges, ready-to-fill. I see all these clients, they are practically trying to mirror the same packaging configuration that the originator are doing. Stevanato is actually working practically, this is also our strategy that we always done this. Our goal is to maximize the penetration in the therapeutic area, maximize the validation to originator, but cover all the biosimilar in order to not have any risk of fluctuation in the next year to come. Today, we're active in program syringes, cartridges ready-to-fill, also in biosimilar, we have also active program in order to serve not only the cartridges ready-to-fill, but also our Alina pen. Got it. From a price point, thinking about cartridges, price point standpoint and this comment that you made about the total cost of ownership evolution toward ready-to-fill, how much higher value or average selling price is your ready-to-fill cartridge versus a bulk cartridge? How much lift do you get out of that? The fact that we are going to take care about this huge investment, automatically, we enter with a cartridge ready- to- fill immediately on the category of high-value product, when it's the range of gross margin between 40%-70%. When the client is more in the concept of high runner, we are more in the range of 40% gross margin. When there are certain biologic clients that have a program between 5 million, 10 million, 20 million cartridges, maybe large format, we are more in the category of 70% gross margin with also active CapEx contribution. All overall, we can easily go above 10 x the value compared to bulk. That 10 x is price point, or margin, or both? For price point. Yeah. Okay. You have this, I think relative to your point about transitioning from bulk to ready-to-use, you have a particular customer that is in that transition process right now. Is that right? Correct. Where does that stand, and how long until they'll be fully converted and ready to use? Well, by the way, these clients have a huge platform worldwide. We start already many years ago to develop the configuration between process, between primary packaging, the type of sterilization, because outsourcing, washing, siliconization, and crimping, it was accomplished. Today, we are starting to introduce the first high-speed line this year. Next year there will be the first ramp-up of the line number one. If you project the next five, six-year, I think the goal is from these clients to convert all their platform. Dave, this is a long process. Only for us to install a line like this can be 24 months, including validation. For them, it's exactly the same. I think this is a program that if you stay in schedule, it will be easy five, six-year program. The volume behind is very big. What is important, this is setting a new standard. Exactly what's happening in the beginning of 2000 on syringes. A certain point, certain big pharmaceutical customer they decide for their total cost of ownership were much better to outsource everything ready-to-fill. Today, close to 98% of the syringes market is on ready-to-fill. Now we are starting to see the same trend on cartridges. Okay. Your setting the standard point is, I was definitely going to go there. Before I do, your five to six-year program, you're installing the first line, I think you said it goes live next year. Can you give us a sense of six years out, when that program is done, how many lines would you have in place for ready-to-fill for this client? Today, we have ready spare parts in-house to go immediately with the second line in order to be fast and to assemble the second RTU 400. For sure, we want to close the validation program to be sure that everything's set, in order to be fast and flexible, the engineering division has all the spare parts in-house. Our BDS segment is already ready to expand the capacity in Latina or expand capacity into Piombino Dese in order really to be able to add also line number three, number four, number five, number six in the next year to come. There's not a clue when to approve the line number three and number four. At the end of the day, like I mentioned to you, it's a six-year program. Year before, year later is where we need to execute this investment. Also because, Dave, there is another element. We are always talking about this client, but in parallel, there are many other clients that are entering the market with a smaller quantity, maybe different format. They're not only talking about 3 ml, some they are on 5 ml and 10 ml. We need also to take care and proactively build the capacity not only for these anchor clients, but for many other clients that are coming on board. Got it. That's the question I was going to come back to. Let's, as promised, move away from GLP-1s. Outside of that, in the injectable space, what is driving your high-value demand? You've seen that mix continue to shift. So- What are your drivers for high value? We see today strong traction from our Alba syringes, in particular for what is related to ophthalmic product or monoclonal antibody. It's also true that today in terms of number are not huge because more our programs are in phase II or phase III or going commercial. If you combine all these programs that we have, we talk about several tens of programs, it will represent a nice double-digit gross revenue generation incremental for Stevanato in the next year to come. We are building capacity into our plants in Padova. Now we are ready to kick off the new industrial line, and also we are going to heavily add capacity in the next year to come in Fishers. On cartridges EZ-fill, we have other customer in biologic, always in a monoclonal antibody, ophthalmic product, rare disease, that are going to use what we call cartridges configuration up to 10 ml because the self-medication, the cartridges is very functional for this. On the top of this, we have many big clients that are asking to move the syringes, or traditionally, for example, the customer is using the standard 1 ml long syringes. They are moving to the 2.25ml, 3 ml, and 5 ml. Since few years ago, the auto-injector usually is going to stop at 2.20ml, 2.25ml because there was not sufficient assurance of the injection of the dose. Today, there are a lot of clinical study at the pharmaceutical company, they are pushing to move up to 3 - 5 ml. There is another incremental opportunity for Stevanato to serve the next year, 3 ml syringe, 5 ml syringe, where the value is very accretive because they are smaller in terms of total quantity but the value is very high. Do I interpret correctly that the price for a 3 or 5 ml syringe is non-linearly higher than your 1 ml? It's going the upper part of our target of high-value product. Correct. Wow, okay. Because of the complexity is, a client that will never order maybe 100 million syringes, maybe they're in the range of 5 million-10 million, 20 million syringes. They will require customized technology, maybe also some CapEx contribution, is exactly the same track record of Alba syringes. In this non-GLP-1, we've covered GLP-1, non-GLP-1 complex biologic space, those products that are the drivers of demand for your high-value products, is your participation rate steady? Increasing? Decreasing? How would you describe your hit rate on those? We established 10 years ago a tech center in Padova and in 2020, a tech center in Boston, with a clear goal to maximize our penetration with the molecule in phase II or phase III. Today, more and more we are enforcing our scientific people, our technical account manager, product manager, in order with a clear goal. In biologics, we want to be number one or number two when there is an injection certain medication. Our win rate is high for practically three reasons, Dave. One, because the tech center is supporting them with a very strong product. Second, because our product, our coating, our IP in EZ-fill platform, are fitting for the requirement why Alba is having this strong traction, because with this plasma coating, it's really perfect fit for this high-potent drug. Even more, the fact that we have proactively built this big factory in Europe and United States is helping give the confidence to the customer, "Okay, I go to Stevanato, have strong technical background." When we go commercial, they already have a huge capacity to sell. To your question, our win rate is very high today. Okay. And- Just to add a little more color, Dave, that I think we discussed at the end of the year call. In 2025, relative to 2024, we had a 40% increase in customer projects tied to prefillable syringes, both the Nexa and Alba. These are future programs. These will seed the future growth of the business. I think that's an important statistic that we see the broadening of those clients within the biologics business ex GLP. Also true, last point, in the organization, the focus today is grow on high-value product in biologic. If you look, we have a nice growth in high-value product. In non-high-value product, we are a little bit more stable because it's not wanted because we don't put attention, but we prefer to maximize the opportunity in the new molecule. Lisa, that number was 2025 over 2024 project growth of? 40%. 40%. Four, zero. Okay. Yeah. Let's move to margins. The mix shift that high-value product adoption drives is a natural margin expansion lever for the business. What is your expectation for margin expansion over time? Today, last year, we have delivered 25% of EBITDA. This year, we are in the high part of 2026. Our goal is to drive the company at 30% of EBITDA, ± 1 point. How? Still we have a lot opportunity to growth in high-value product. We still have opportunity to bring in full potential Latina between syringes and cartridges. We are starting to add additional revenue with our Alba technology in Padova, in Piombino Dese. Even more, the huge investment in Fishers have a lot of space to growth, today we launch a big cycle of investment syringes. There will be opportunity to do another cycle of syringes investment. We are starting to validate the high-speed line for vial ready-to- fill. There will be a second line for vial ready-to- fill. We will add also Alba technology. Also, in the second part of the year, we are starting to ramp up the department for devices. Taking consideration all these elements, our goal is to drive the company in 12 - 24 months to 30% of EBITDA. Yeah. I know that that 30% goal, as I remember, is your long-range plan target. Yes. You still believe that you can get there in that timeframe? Firmly committed, yes, to stay on the. Excellent this target. Maybe it will be not the full year 2027, but the goal is going, really, to go in this direction. In parallel, also, in the company, that now we have a lot of capacity in place. We are more and more boosting strong program, what we call operational excellence efficiency. In terms of Fishers and your journey there and building out, I guess if one were to see that facility, how full is it? I think we are in the range of 60% of space occupancy. We need still 2026, 2027, 2028, and 2028 to bring full capacity. In terms of stabilization, productivity, efficiency, the existing capacity, I think we have other 12 months to bring full capacity. If I mirror Latina, Latina in 2025 increase. We were running full capacity close to the end of 2025. This year, in terms of also OEE rejection rate, is performing same performance of Padova. The marginality of Latina is in line. I think that this is where we see. Space capacity is at 60%, but if you combine with also productivity improve, I think we have a lot of way to go. We have a very high expectation from these plants in next few year. You had gave us a easy rule of thumb that EUR 1 of CapEx should equal about EUR 1 of revenue. That CapEx total is targeted at, what? EUR 500 million-EUR 550 million. For high-value product, the goal is EUR 1 CapEx, EUR 1 revenue. The plans of Fishers, I think is at 75%- 80%, it will be with high-value product. This is the goal, it will be more or less in this range. Okay. If you consider that will be also bulk vial production, and the device are non-high-value product, but the goal- Right. Okay. Okay. is to be in this range. Okay. You're 60% occupied. I'm guessing you're not yet at 60% of the revenue target yet. Correct. Not yet. Is that right? Because the- Yeah the line is there, but the high-speed line area, you will see next week, is there, but it's not generating revenue yet. Yep. You're more like 40% or 50%? That's not a statistic that we've provided, Dave. I also ask many time to our controller, have difficulty to have the information. Yeah. This is why on Sunday I want to check personally where we are. Right. He wants you to check after you talk to Dave Windley. Right. Right. I will check with the parameter what is the real revenue. I mean, it's fair to say it's a multi-year investment with a multi-year ramp-up. As we continue to bring more lines into commercial production, revenue will continue to ramp. Even if you just look at what we're doing on the contract manufacturing on devices, we're not yet at commercial volumes. We just started running performance qualifications for one of the device projects. We still have quite a ways to go. Go ahead. If you allow me to explain what is our approach, Dave. In 2025, we were not making stress to our plants in Latina to focus the EBITDA. We were really put a lot of attention on training and stabilization the process. This had helped our people to focalize to bring a maximum of efficiency. In fact, this year we are seeing the result. We are doing exactly the same. If you have close to 100 people starting to do the kickoff for the department for auto-injector, we don't want to put stress on economics. We want to put a lot of pressure in order, really, to make the stabilization of the process. Automatically, the margin will arrive. This is why our goal is to have the validation, stabilize the process, perform the right training, and then you can take off with the marginality. We're running close on time. Let me try to hit on two things real quickly. Has the Middle East conflict had any impact on customer behavior or supply chain? Not really. Not at all. Okay. You had mentioned, I think, some slower decision-making on CapEx projects by customers that would, I think, influence some amount of engineering orders, might also influence conversion to high-value products. Those CapEx projects by customers, how would you describe those today? I have two example. We have two big U.S. clients that have ordered the first assembly technology for their devices. They give already the verbal commitment for the line number two, number three. There are two, three implication. First, they want to be sure that in the first plants that they have the running our syringe with our device, with our line, everything's perfect in order to confirm that the second line, the third line must have the same user requirement. Also, there are another client that they have not fully understand if they want maybe to order two, three line for each format, or to order from us combined. All these technical question are unfortunately postponing one, two quarters the order. The pipeline is there, is healthy. The conversion into order is taking a little bit more time. This is why in our guidance in 2026, we are soft in revenue, but we are increasing the marginality. Okay. I think we're at time. We better call it there. Franco and Lisa, thank you for being with us. That's it. it. Thank you. Thanks to the investor audience for being here. Thank you. Enjoy the rest of your day.