West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Specialty and Generic Pharmaceuticals Conference 2008
24 slides from West Pharmaceutical Services's conference presentation, May 27, 2008
Slide 1: UBS Global Specialty and Generic Pharmaceuticals Conference
Exhibit 99.1 William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com UBS Global Specialty and Generic Pharmaceuticals Conference London, England 28 May 2008 NYSE: WST westpharma.com
Slide 2: Forward-looking statements
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation contain some forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Excha
Slide 3: Company Overview
Founded in 1923 Headquarters in Lionville, Pennsylvania (USA) Global production, sales and distribution Company Overview
Slide 4: Who We Are
Who We Are World’s premier manufacturer of components and systems for injectable drug delivery Closure systems and prefillable syringe components Components for disposable systems Devices and device sub-assemblies Safety and administration systems 2007 sales > $1.02 billion Market cap $1.4 billion
Slide 5: Diverse, Stable Customer Base
Diverse, Stable Customer Base Company-estimated market share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 6: Key Developments - 2007
Key Developments - 2007 Extended Daikyo sales and technology agreements to 2017 Raised $161.5 million by issuing 4% convertible junior subordinated debentures Repurchased one million shares Accelerated global manufacturing infrastructure investments Received China land use application approval Concl
Slide 7: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 8: Global Revenue Breakdown
Global Revenue Breakdown Based on 2007 Sales South America 5% North America 49% Europe 42 % Asia/Pacific 4%
Slide 9: West's Competitive Advantage
West’s Competitive Advantage Unmatched experience/expertise: drug - material interface Ability to source components from multiple locations globally Protected IP: West’s components and systems Regulatory barrier to entry: US NDA and ANDA filing must include reference to all packaging/components in c
Slide 10: Market Dynamics Support Continued Growth
Market Dynamics Support Continued Growth Aging population creates an increasing number of patients with chronic illnesses such as diabetes and cancer Biologic drugs continue to grow Biologic drugs represent the fastest growing segment of the injectable pharma market (13% CAGR projected through 2010)
Slide 11: Future Growth Drivers
Future Growth Drivers Increasing number of patients with chronic illnesses Many of these are treated with biologic drugs Biologic drug demand ultra clean delivery systems Safe, accurate dosing needs are pushing the market toward integrating the container/ closure system into the delivery system West
Slide 12: Four Strategic Growth Platforms
Advanced Injection Systems Injectable Container Solutions Prefillable Syringe Systems Safety & Administration Systems Four Strategic Growth Platforms
Slide 13: Growth Platform: Injectable Container Solutions
Growth Platform 1 Injectable Container Solutions West FluroTec ® Components Seal - Stopper - Vial Daikyo Crystal Zenith ® Vials Estimated Market Size – $1.5 BN CAGR – 4% Source: Company estimate for vial systems only West Spectra™ Seals
Slide 14: Growth Platform: Safety and Administration Systems
Growth Platform 2 Safety and Administration Systems Vial2Bag™ Mix2Vial™ MixJect™ Total Market – $1.5 BN CAGR – 11% Source: Greystone Associates and Company estimate Project Orion
Slide 15: Growth Platform: Prefillable Syringe Systems
Growth Platform 3 Prefillable Syringe Systems FluroTec ® Plungers Needle Shields, Tip Caps Daikyo Crystal Zenith ® 1mL LL Prefillable Syringe Daikyo Crystal Zenith ® Staked Needle Syringe Estimated Market Size – $900 MM CAGR – 8% Source: Company estimates
Slide 16: Convergence of Primary Containers and Delivery Systems
Convergence of Primary Containers and Delivery Systems Auto Injectors with Cartridges Traditional Injection System Components for Pen System Applications
Slide 17: West Advanced Injection System Platform
West Advanced Injection System Platform 2 Staked Needle Prefillable Syringe Growth Platform 4 Advanced Injection Systems Plunger Primary Drug Container Lined Seal Platform 3 1mL Flanged Cartridge Estimated Market Size - $210MM CAGR – 8% Source: Greystone Associates and Company estimates
Slide 18: 2008 Management Operating Priorities
Grow revenues and earnings despite reduced sales of certain products Fundamental growth will offset lost revenue associated with Exubera ® , ESA drugs, etc. Generate Tech Group performance improvement Effectively manage global capacity expansion Continue investing for the future Innovation programs
Slide 19: Full Year Results
Full Year Results $1.83 $2.06 EPS from Continuing Operations - GAAP $1.93 $2.37 EPS from Continuing Operations - Non-GAAP $11.1 $16.1 Research & Development $61.5 $71.2 Income from Continuing Operations $147.8 $152.5 Selling, General & Administrative Exp. 29% 29% Gross Margin $913.3 $1,020.1 Net Sal
Slide 20: First Quarter Results
First Quarter Results $0.77 $0.76 EPS from Continuing Operations - GAAP $3.6 $5.4 Research & Development $26.5 $26.2 Income from Continuing Operations $0.77 $0.72 EPS from Continuing Operations - Non-GAAP $37.0 $40.1 Selling, General & Administrative Exp. 31% 31% Gross Margin $257.6 $270.7 Net Sales
Slide 21: Capital Management
Capital Management 36.9% 38.6% Net Debt to Total Invested Capital $108.4 $93.6 Cash $129.3 $22.8 Year-To-Date Capital Spending 44.6% 44.8% Debt to Total Invested Capital $490.9 $515.0 Total Capitalization $395.1 $417.5 Total Debt 12/31/07 3/31/08 ($ millions)
Slide 22: 2008 Annual Guidance
2008 Annual Guidance Revenue estimate of $1.08 billion Estimated capital spending of $140 million Estimated adjusted (Non-GAAP) earnings per diluted share is between $2.40 and $2.50: Estimate reflects an exchange rate assumption of $1.50/ € 1.00 Reconciliation of GAAP and Non-GAAP 2008 estimates: *
Slide 23: Summary
Summary Fundamental business drivers remain unchanged Opportunities for growth remain very attractive West’s competitive advantages uniquely position the Company to capitalize on growth drivers in key market segments Solid balance sheet Seasoned, experienced management team Incentives closely tied t
Slide 24: William J. Federici
William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com UBS Global Specialty and Generic Pharmaceuticals Conference London, England 28 May 2008 NYSE: WST westpharma.com