Okay, good afternoon, everyone. I'm Susan Anderson, one of Canaccord's analysts in the consumer space, and we're very excited to have here Perigo with us, including interim president and CEO Albert Menzone, CFO Eduardo Bazzara. With that, Albert, I'll turn it over to you to give us a brief update and overview of Perigo, and then we can do some Q&A.

Thank you, Susan. I'm going to stand up. Thank you, Susan, for having us, and thank you all for attending today Perigo presentations. So I'm going to take you through a quick presentation and then happy to take any questions that you may have. If we look at this as the usual, so you have all read it. If I go to Perigo, the Perigo mission is pretty fundamental and simple, which is really to provide affordable quality self-care to the larger number of people in the world. that's really the mission the market we are competing in is large and attractive with about 400 billion target market we do have something and I would come back to it which is pretty unique we have the largest number of molecules that we can work with which is 250 molecules and formulations and we have put in place over the last year a model which I will come back to which is really to stabilize streamline and then strengthen the Perigo company and I'm going to talk to you about that but let me start with the addressable market the 400 million this is obviously in OTC and and self and specialty care this is a large market it's resilient it's growing and it's needed so this is a good market to be in it provides essential needs wherever it is in pain in sleep cessation and and etc big global expansion opportunity of course because the needs of the consumer and I will also come back to it the needs of the consumer across the world on those basic needs is pretty much the same in terms of our position I would say we have two main geographic positions one is the US the other one is Europe when I say US you have obviously a piece in Canada now think about the US as mostly a store brand business 90% of our business in the US is store brands so it's brands that we have the name of the retailer on it. We do have over 50% share of old store brand business in North America, and we have 60% household penetration, which is again one of the highest, if not the highest, which means that 60% of U.S. households will have one of our products in their home. If you move to Europe you have a very different business you have a mostly branded business 90% is branded 10% only store and that's mostly in the UK and in in Europe we have in the UK 80% household because we play both branded and store brands for the rest of the markets in Europe were mostly branded business with very strong brands like compete or jungle formula and we have obviously if you look at the word big opportunities for international expansion in due time this is essentially on the right side the categories we compete in we have about eight categories which are pain and sleep healthy lifestyle digested health skin health infant formula oral care over upper respiratory and we're in the process of simplifying that portfolio which i'm going to come to we have as i told you number one share in u.s store over 50 and we have number one and number two brands in europe and you see essentially some of the pictures of some of the brands that we do have across across the two regions now what is important is how do we take those benefits forward and what you have here is 250 molecules and formulations and what we have developed over the last one year is the ability to innovate across those molecules and then deploy those in any market at any price points that we so choose to do with our retail partners or with the consumers this is very important so this is I think one of the key connector points in between the store brands and in the branded business so our innovation is agnostic since one year we're going to have next year 58 percent that is going to create a longer chassis common chassis and then deployed across different brands and different prices we do this with a very strong retail partnership with a 50% of us a share of branded store brands and with the ability to innovate and create demand generations We're the only, I would say, store-brand business that can really sit down with the retail partners, co-develop, co-innovate, and launch and create demand generation. So we're very excited by the work we're doing with the big retailers in North America, be brick and mortar, be e-commerce partners. For that, we have, in addition to the innovation and the demand generation and the retail partnerships, you need the muscle behind, which is for us the largest U.S. OTC manufacturing capabilities in North America, strong in Europe, which allows us to essentially scale our innovation and to provide it at low cost, which is essentially what you want in a store brand business. and we have of course strong regulatory expertise which as you know is critical in this industry especially when you work across different markets now what I want to spend a little bit of time is on the 3S plan and one of the things some of you may know that I've been on board since nine weeks I have said the first thing the most important is to stay the course the strategy which I know since being on the board in 2022 is very foundational and is what perigo needs the first thing that we needed to do was to stabilize the business which has been started a year ago the first thing that you wanted to do when you think about store brands when you think about partnering with retailer you want good service levels so this is what we have been doing increasing our service levels which allow us to work closely with the retailers we also have as you know an infant formula business which we have stabilized and that has gone a long way to help deliver consistent execution which we're in the process of the second thing is to simplify and i'm big on simplification because simplification drives execution. So a sharper, I would say, strategy. And on that sharper strategy, simplification of the portfolio is key. We have two businesses that are under strategic review. One is the infant formula, and the other one is oral care. We have already taken care of derma cosmetics. We have cost savings in place, and so that allows us, number one, One, to improve, of course, the profitability of the business, but also to de-leverage, which I would come back to the end, is one of my top three priorities. And once you stabilize and streamline the business, of course, what you are left to do is to strengthen it. And I would say that there, the thing that I'm excited about has been essentially to put in place a category-led model. What does that mean? Very simply put, instead of doing everything bottom up, starting from a given market, you start from the consumer standpoint, which for anybody that has been in the business, you always know that if you start with a consumer, you are usually in a good place. it's even more important for us since in this type of category we're in the consumer needs are pretty similar across the world in terms of pain sleep or any of those categories so this category led model has been launched in Q1 26 it's already proven very effective 58% of our innovation next year is going to be launch with this in mind with a category led model with the right price points and it's going to be 3x what it was this year so we're excited about this we're already seeing gains in market share the market as you know and we could talk during the Q&A was soft in the first half the market in general we were gaining share in the second half the market is going to expect to be coming back we are continuing to gain share as we get into the Q3 and we have a lot of innovation and demand generation and normalize the seasonality that we're looking forward to drive the second half so what what I what I would say is that so far what I've been talking to you about is a lot of structural improvements which are much more important we think that's in the transitory headwinds that we have had in the first half of 26 and those structural improvements are demonstrated by the share by the improving cost structure by the enhanced retail partnerships because we are doing a lot of work with them as we speak and by a simplified portfolio so what you look on the right side as you look at the results is transitory at winds which are not here to stay but of course there is there has been for a lot of the industries a first half where the consumer were a little bit skittish with economic uncertainty number two the the calf cold season and the actually allergy season has been abnormally low so we project for the second half some level of normalization but all not the way too bright so we're conservative in a way we have obviously with the lower cold flu season we have an under absorption in the manufacturing facility as a result of this and with the interest rates where they are retailers have been de-stocking in the first half so most of those noise will recede in the second half which is why when we look at our projection and our full year we are where we are so what is exciting about Perigo I've been brief but I've told you a little bit and the important thing is when you look at the multiple you see a significant gap in between Perigo and the rest of the sector I would say that first of all in all humidity we have to re-earn the trust of the investment community that's normal because we have been inconsistent in the past and that would come one quarter at the time i was happy about q2 and i was happy about the reaction to q2 which seems to indicate that if we put one good quarter after and over and we not only have a sharper strategy but also a great execution we are going to get some re-rating that would come as I as I said number one with revenues and earnings recovery which we do expect as I said because some of the headwinds of Q1 are transitory and the structural work we're doing is here to stay and the second one and important is with the businesses under review and with and some of them are actually cash dilutive and margin dilutive, that would enable us to essentially de-leverage, which obviously is something that we know investors are looking at. So, and this is my last slide, in conclusion, what I would say is that with Perigo, you have essentially a company that competes with a very clear mission in resilient and essential categories you have a very scalable growth with the 250 molecules that we are now innovating against and taking across any brands any price points you have a very clear stabilize streamline and strengthen plan with under it as I say the category led model that really allows us to grow the top line improve the cost and you have a clear gap in the valuation which you know there is always a reason but i think as we look forward we see significant opportunities for re-rating with the deleveraging on top of this so that's what i wanted to share with you being very conscious of the fact that i want to leave time for the q a and i thank you for your time thank you albert I can kick it off, and then if there's any questions in the room, feel free to raise your hand.

We'd be happy to answer them. Albert, so as you mentioned, you've been interim CEO now for about nine weeks, but on the board since 2022. So I'm curious, you gave us a little of your thoughts just now, but your first impressions of the company, and then also I think the key question I get from investors since the change is, will there be a change in strategy as we look forward?

So the good news, thank you for the question, the good news is I am more excited from now that I've been inside the tent than when I was outside of the tent or semi-outside or semi-inside. I'm more excited, much more excited. Number one, I thought that the company looked more complex from the outside that now I make it from the inside. And I think I'm going to work to make sure that the simplicity of the business comes through, because it's not a complicated business. We have store brands in the U.S. We have brands. We have platforms with 250 molecules. We have a great way to start with the consumer now, with consumer insights, R&D, innovation, marketing, demand generation. So we have something that is simpler than I thought it was, which is very good news, especially with the simplification of the portfolio. The second thing that I'm excited about is the foundations that have been put in place by the team are very sound. This is what I took you through at a very high level. But I'm very excited by what the team has done. One, this is a team that has put in place in Perigo for the first time in a long time, very solid foundations. And the third thing that I do like since I've been inside and, you know, I've been around a lot, traveling a lot, seeing a lot of people is the quality of the organization. So there is obviously a lot of passion when you are at Perigo because everybody can rally behind a mission, which is not the case of all companies. and so the fact that the people work every day to provide affordable health care is something that rallies across ages and across any countries but i would say that the quality of the people that we have is is very high as high as i have seen in any of the best organizations i've been into and so for all those reasons there is no change of strategy i would say i will always sharpen it number one and number two i am a big believer that strategy without execution or execution without strategy is useless and i'm also a very big execution fan and so you know working the execution all the way down is something that i love to do and leading by example doing that with retailers with supply chain going to the plants and working those type of things i think is what we is going to do a lot of good to Perigo.

Okay, great. And so Perigo has been in this multi-year transformation, I guess, for some time. And I agree with you, the stock is quite a bit below its peers. So I think a lot of opportunity to re-rate as you guys do execute. It's nice to see that in the last quarter results in the stock reaction.

I guess, where do you think we're at in that multi-year transformation I guess what phase and how much further to go I think I'm very lucky because because the inflection point if the inflection point is is happening as we speak if you look at the leadership team this is a leadership team that has been Eduardo has been has been the standard bearer for four years four years I came on the board four years ago myself so I think we we came together the rest of the team has been put in place 18 months ago there are pros you know they are super professionals they have done it many times so it's coming together as we speak the fact that next year you have 3x the innovation of this year the fact that second half you have for the first time ever joint advertising developed with Walmart Dollar General the fact that we have Amazon visiting all of our plants two months ago etc etc it's happening so I think we are at a very good point of inflection I think the fact that we have the two reviews so I'm looking forward to 27 28 29 as a very good years continuing obviously to work the cost side of things and those programs have been launched as we speak as of the last board meeting and so I I was talking yesterday, and I'm going the week after next to our manufacturing facilities in Michigan. I think all these things were at a perfect spot.

Great. Good time to be coming in. We have a question in the audience here.

What has not been able to turn around the last several years?

Too many acquisitions and not enough focus on sharpening the strategy or the execution. If you do one acquisition after another and you don't integrate them, you end up where you end up. So what I'm very thankful to the team that is in place is this is a team that stopped, started to think, and put in place the foundations. So I'm working the IT, I'm working the supply chain, I'm working the Salesforce, I'm working everything. But it's essentially, in a way, it's easy because all what you have to do is to stop doing things that are not producing value and putting in place fundamentals. And putting in place fundamentals, if you get the right people, it's easy because you just have to do what you did at any of the great companies that those people come from. So I won't say it's a difficult job. It's just a job that you have to do. And people were more interested in doing acquisitions. and over time that becomes very complex and complicated to manage.

One more here, go ahead.

Yeah, so it has already started, right? So we expect 80% of these to take place in 26 and the remaining 20 in 2027. So we have already delivered between Q1 and Q2 a portion of that. So it starts to accelerate in the second half of the year, and then you'll have the remaining piece in 2027 And then one more question i have run global businesses for a long time very tough businesses this is a tough business

it's a low margin business when you're in store brands you cannot you cannot think as you know premium brands with 90 margins if you're in food beverage if you do turnarounds etc you know what tough is and there is a lot of places i've seen that are as tough or tougher than this one so again I think that what change is the quality of the team so the team that has been brought by Patrick is a very strong team very very pro so as they can do they know what to do I mean the advertising I've seen for the second half with Walmart and Dollar General is outstanding so I think number one the the team is very strong and can take on things number two we're simplifying the portfolio so I'm very very determined to do that because the more you simplify the more you can focus on what what you have left the third one is that some of the jobs that you have to do when you have a succession of acquisition that have not necessarily been integrated you have to do the dirty work you have to put in place the IT if you have 1200 systems you need to simplify if you have many ERPs. Not everybody likes to do that. This is nitty-gritty work. That's why I'm saying in this job at Perigo, if you like only the strategy and not the execution, I think you're not in the right place. A store-brand business is brutal. You need to be competitive every day, and that's what needs to drive you and the organization. That's why I think we have also at the N-2 and N-3 and N-4, the makeup of the sales force in North America is completely different than it was. So a few things, number one if you are at Walmart we're growing very much the online business with them so this is not only Amazon even though I'm very happy to say that Amazon became a number one customer in europe ahead of tesco so it's going very very well number two we do for them the basics brands and we have a unique capability i don't think anybody in the store brand business can do what we do which is to sit like any branded company and co-innovate tell them where the consumer what the consumer is thinking where the consumer is going and then when you look at when and you look at an Amazon or a Walmart online or order and pick up in the store, we're in categories that can be very repetitive, whether it's allergy or pain or cough cold, etc. So it's a very easy replenishment category that you can be in.

So in all the businesses I've been in, you start to have a growing online business, which you manage especially on the store brand business it's very easy to manage I would say easier than on the branded business where you start to have issues with the pricing we don't have that problem the interesting thing just to add it's on the categories that we play e-commerce represents about 20% you know so depends on volume versus dollars but it's about 20% and the speed of growth the recovery taking place is much faster in e-commerce versus brick and mortar and we're growing now twice the speed in commerce than the market and so our market share gains in store brand has been four times brick and mortar in the last two months so that's something that we believe we're only going to accelerate you know as more and more consumers shop there and see the the real difference on the price of national brand store brand because during COVID prices increased dramatically so the traditional gap between national brand and store brand with the target has been 25 to 35 percent our categories that now 70 percent so when you put that side by side it's easier to the consumer and more and more consumers are becoming more with AI they're seeing more that is exactly the same product and part of our campaign is really focused on consumers to say is identical products you just pay more for the name Advil versus IB proofing and so in the e-commerce side we're seeing a big turnout of that that's what to believe can be a tailwind for the second half as well it looks like we're out of time here but we can take some questions offline.

There's definitely a lot of interest.