Sotera Health Company Common Stock Wells Fargo 21st Annual Healthcare Conference

Good afternoon, everyone. I am Rahul Sood, Managing Director in the Healthcare Investment Banking group at Wells Fargo. On the stage, I am joined by CEO of Sotera Health, Alton Shader. Alton, welcome. Thank you. It is good to be here.

Thank you for being here with us. For the investors who may be newer to the story- Sure can you provide a brief overview of Sotera Health and explain why the services provided by your three different segments, Sterigenics, Nordion, and Nelson Labs, are so critical for your customers?

Yeah, absolutely. Sotera Health's mission is safeguarding global health. What we do is we advance that mission through three business units in Sterigenics, Nelson Labs, and Nordion. Our largest business unit is Sterigenics. Sterigenics is a leading global provider of outsourced sterilization services to both the medical device and pharmaceutical markets. We offer all major sterilization modalities and technologies, and we've got 49 facilities around the world. Now, sterilization, for those of you who aren't familiar, is the last government-mandated step that a MedTech device, for example, needs to go through before it is available to be used by providers or for patients. The way the process works is, for a medical device, a MedTech OEM will manufacture the product, they'll package the product, they'll box the product, they'll put it on a pallet, and they'll deliver it to one of our 49 facilities.

We will then sterilize that product utilizing one of the technologies or modalities that it's been validated for. Once that sterilization process is complete, it's now ready for use. So that's Sterigenics. Moving to Nelson Labs. Nelson Labs is a leading provider of microbiology and analytic chemistry testing. Again, we serve both the medical device and pharmaceutical industries. The goal for Nelson Labs is to ensure that their customers have safe, compliant, and effective products. We offer over 900 tests, and we've got 12 labs globally to serve our customers. Our final business unit is Nordion. Nordion is the leading provider of sealed source Cobalt-60 in the world. Cobalt-60 is essential for the use in gamma sterilization, as well as targeted cancer treatments.

We operate a Class IB nuclear facility, and we've got long-term contracts with nuclear reactors around the world to allow us to provide safe and effective and enough supply of Cobalt-60 to provide gamma sterilization around the world. Nordion also is a leader in transport technologies for Cobalt-60. This is not a typical product that you just put on the back of a truck. It's really important because around 30% of single-use medical devices are sterilized with gamma radiation. Each of our three business units are absolutely essential to the healthcare supply chain. Sotera Health is more than that. It's more compelling because of the complementary nature of these business units. For example, Sterigenics and Nelson Labs.

They can offer an integrated offering for sterilization and lab services, and lab testing to our customers, and that just shows the value of the one Sotera approach to our customers. Overall, again, our goal is to advance our mission and ensure that our customers get safe, effective and compliant product to market.

Wonderful. You recently joined Sotera.

Yeah. Why? Yeah. I joined back at the end of May, and I've been working in healthcare for over 25 years.

I knew about Sotera, primarily through Sterigenics. As I was doing more research and speaking with Michael Petras, previous CEO for 10 years, who's now our Executive Chairman, did a lot more research on the company and realized just how essential and critical our offering is to the healthcare industry. This was really inspiring. I also learned about, again, the complementary nature of our businesses. Sterigenics and Nelson Labs, for example, there's a real opportunity, again, for us to be even more coordinated in our approach to our customers to offer differentiated solutions across these businesses. That's a very exciting opportunity to me. We also have an incredibly strong financial makeup in our organization.

There's not a lot of scaled businesses with EBITDA margins over 50%, and that becomes even more interesting based on the amount of cash generation that we're going to see over the course of the next year. That has really positive implications for capital deployment. I took that all into consideration, and those are the main reasons I joined and couldn't be happier to be here.

Wonderful. You came from the customer side of the industry.

Yeah. What does that, if I can call it the outside-in perspective, Sure tell you about what Sotera does especially well for its customers today?

Yeah, absolutely. I came from a company called Viant Medical, was the CEO there for about seven years. It's a large contract manufacturer focused on the MedTech industry. And I reflected heavily on my experience with Sterigenics when I was at Viant, when I was thinking about this role. One of the things we did at this company was we offered a variety of services across the manufacturing value chain, including final assembly of product and managing the sterilizer for our MedTech OEM customers. We worked with Sterigenics a lot. And what I kept thinking back to was the really difficult time in our industry post-COVID. COVID itself was very difficult, but coming out of COVID, you had the supply chain crisis.

I think back to my time and how much of my day was spent with suppliers who were not delivering for Viant at the time. I never had to worry about Sterigenics. I never had to pick up the phone and call Michael. In fact, I don't recall a meeting that I had during that time where somebody said that Sterigenics was the problem. I know that they were struggling as much as any other service provider during that time, but they continued to deliver for us, and we weren't their largest customer, but that showed the culture and the focus around the customer that Sotera has, and that's something that I feel very fortunate to be a part of.