West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — J.P. Morgan Healthcare Conference 2018
20 slides from West Pharmaceutical Services's conference presentation, Jan 10, 2018
Slide 1: West Pharmaceutical Services, J.P. Morgan Healthcare Conference
West Pharmaceutical Services, Inc. J.P. Morgan Healthcare Conference Eric M. Green, President & CEO January 10, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements inc
Slide 3: An Integral Part of the Healthcare Industry
An Integral Part of the Healthcare Industry Top 50 Injectable biologics rely on West and Daikyo components ~ 41 Billion Components manufactured annually Top 75 Supplier to the top 75 pharmaceutical & biotech injectable companies J.P. Morgan Healthcare Conference 3 | A 95-year history of providing in
Slide 4: West Business at a Glance
Net Sales* By Product Category Net Sales* By Geography Americas Europe, Middle East, Africa Asia Pacific 53% 40% 7% Net Sales* By Market Group High-Value Components Standard Packaging Delivery Devices Contract-Manufactured Products P R OPRI E T A R Y P R O D U C T S Pharma Generics Biologics Contrac
Slide 5: Proprietary Products Business Segment
Proprietary Products Business Segment Proprietary Products Vial Containment Components Pre-fillable Syringe Components Cartridge System Components Polymeric Containers Reconstitution Devices Self-injection Devices J.P. Morgan Healthcare Conference 5 | Growth in High Value Products Nine-month YTD Net
Slide 6: Contract Manufacturing Business Segment
6 | Design & Prototyping Injection Molding of Plastics Product Assembly Project Management Global, Large-scale Capacity Autoinjectors Pen Injectors Continuous Glucose Monitors Inhalers Customers’ Commercial Products 2013 2017 Growth in Healthcare-Focused Areas Nine-month YTD Net Sales Net Sales Cont
Slide 7: Asia Pacific & Latin American Regions
Asia Pacific & Latin American Regions Standard 54% HVP 45% Generics ~56% 12% • Healthcare spending increasing • Product quality enhancements due to government and regulatory requirements • Generic (small molecule) injectables lead in volume with increasing interest in biosimilars • Increase value to
Slide 8: Long-term Strategy
Long-term Strategy Market-Led and Exceptional Customer Experience Operational Effectiveness Product and Service Differentiation Drive Shareholder Value Become the world leader in integrated containment and delivery of injectable medicines J.P. Morgan Healthcare Conference 8 |
Slide 9: Addressing Unique Customer Needs
Addressing Unique Customer Needs Quality – A High Bar Set By Our Customers GENERICS Speed to market Efficient manufacturing BIOLOGICS Packaging solutions for sensitive molecules Self-injection technologies PHARMA Total cost of ownership Life cycle management Quality manufacturing Design for manufact
Slide 10: 2017 Scientific & Technical Engagement in Packaging & Delivery
~300 Customer Audits >1,700 Customer Requests Regulatory Filing Assistance Scientific Affairs & Technical Customer Service 2017 Scientific & Technical Engagement in Packaging & Delivery >150 Patents Filed >40 Technical Presentations J.P. Morgan Healthcare Conference 10 |
Slide 11: Global Operations: By the Numbers
Global Operations: By the Numbers OF PROVIDING INNOVATIVE SOLUTIONS COMPONENTS MANUFACTURED DAILY MANUFACTURING FACILITIES AROUND THE WORLD SQUARE FEET MANUFACTURING SPACE < 0.08 PARTS PER MILLION OF OUT-OF-SPEC PARTS 28 >110 Million >3.3 Million 95 Years J.P. Morgan Healthcare Conference 11 |
Slide 12: Quality – A Patient First Focus
Quality – A Patient First Focus J.P. Morgan Healthcare Conference 12 |
Slide 13: R&D Portfolio Productivity
R&D Portfolio Productivity New products launched over the past five years are expected to contribute more than 100 basis points of organic sales growth in 2017 J.P. Morgan Healthcare Conference 13 | Advancing Our Core With technical manufacturing advances to produce higher value products Delivery De
Slide 14: West Solutions: Integrated Containment & Delivery
West solutions: Integrated containment & delivery STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION INJECTION MOLDING MULTI-COMPONENT ASSEMBLY STANDARD est Differentiated Solutions: Integrated Containment & Delivery Increasing levels of customer inti
Slide 15: Product Net Sales & Margin Growth
Circles reflect relative size of 2016 net sales Standard Packaging High-Value Components 0% 5% 10% 15% 20% 0% 30% 60% 2016 Category Gross Margin % Proprietary Devices Contract Manufacturing 2016 GM 33.2% 5-Yr Sales CAGR 7.4% Product Net Sales & Margin Growth 2012-2016 compound annual net sales growt
Slide 16: Sustained, Consistent Growth
2012 2013 2014 2015 2016 Net Sales Sustained, Consistent Growth 2012 2013 2014 2015 2016 Adjusted Diluted EPS* (Non-GAAP) Constant Currency CAGR 6.8% Comparison of Cumulative Five-Year Total Return Sources: IR Insight, Company estimates *Please refer to “Reconciliation of Non-GAAP Measures” at the e
Slide 17: 2018 Preliminary Sales Outlook and Long-Term Financial Construct
2018 Preliminary Sales Outlook and Long-Term Financial Construct (presented on October 26, 2017 Q3 2017 earnings call) 2018 organic sales growth is expected to be in a range of 6% to 8% Long-term financial construct: ‒ Components and contract manufacturing business to grow in a 6% to 8% range ‒
Slide 18: Building for the Future
Building for the Future Global Operations driving service, quality, safety and improvements in productivity to drive down cost Market-led strategy addressing the specific needs of pharmaceutical, biotechnology, generic and medical device customers Strong competitive position Quality culture Desi
Slide 19: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 2016 2015 2014 2013 2012 Diluted EPS Reported (GAAP) $1.91 $1.30 $1.75 $1.57 $1.15 Venezuela currency devaluation 0.04 - - - - Pension settlement charge - 0.43 - - - Pension curtailment gain (0.01) - - - - Executive retirement and related costs - 0.09 -
Slide 20: Slide 20
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