West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Investor Presentation (June 2016)
24 slides from West Pharmaceutical Services's investor presentation, Jun 8, 2016
Slide 1: West Pharmaceutical Services, Inc. June 2016
West Pharmaceutical Services, Inc. June 2016
Slide 2: Safe harbor statement
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This slide 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 include, but are no
Slide 3: By your side… Our mission
By your side… Pharmaceutical, biotechnology, generic and medical device companies trust West and our ability to deliver consistent high quality and technologically advanced containment and delivery solutions. We share their commitment to improving health for patients worldwide. Our mission 3 Become
Slide 4: Injectable market
4 Injectable market 30 Billion Units $284 Billion of Annual Drug Sales $7- 8 Billion Containment & Delivery Product Sales Source: IMS and Company estimates
Slide 5: An integral part of the healthcare industry
An integral part of the healthcare industry Top 35 Injectable biologics rely on West and Daikyo components ~ 40 Billion Components manufactured annually Top 75 Supplier to the top 75 pharmaceutical & biotech injectable companies 5
Slide 6: Components manufactured: Every Dose, Every Time
Components manufactured 6 Every Dose | Every Time | 100% Commitment 40 Billion ANNUALLY 110 Million PER DAY 5 Million PER HOUR 76,000 PER MINUTE
Slide 7: West business at a glance
2015 Sales $1.4 billion 2015 Sales $1.4 billion 2015 Net Sales by Geography West business – at a glance 7% 39% 33% 21% Americas Europe, Middle East, Africa Asia Pacific 2015 Net Sales by Category 2016E Sales(*) by Market Group 53% 40% 7% High-Value Components Standard Packaging Delivery Devices Cont
Slide 8: The customers we serve
The customers we serve 8 2016 Expected Organic Sales Growth 6-8% 20% 20% 30% 30% Biologics Contract Manufacturing Pharma Generics Source: Company expectations and approximate percentages More than 2,000 customers Global customer base About 2,400 injectable products are in the development pipeline To
Slide 9: West's role in delivering medicines to patients
Proprietary Products Stoppers Seals Caps Syringe Components Daikyo CZ Vials & Syringes Reconstitution Systems Self-Injection Devices West’s role in delivering medicines to patients Contract Manufacturing Engineering Injection Molding Project Management Tooling $0.3B $1.1B ~8,000 product SKU’s 9
Slide 10: Long-term strategy
Long-term strategy 10 Market Led and Customer Experience Operational Excellence Product and Service Differentiation Drive Shareholder Value Become the world leader in integrated containment and delivery of injectable medicines
Slide 11: Addressing unique needs
Addressing unique needs 11 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 manufacturing
Slide 12: West solutions: Integrated containment & delivery
West solutions: Integrated containment & delivery 12 Increasing levels of customer intimacy Increasing value to West STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION CONTRACT MANUFACTURING INJECTION MOLDING CONTRACT MANUFACTURING MULTI-COMPONENT ASS
Slide 13: Product net sales & margin growth 2011-2015
Circles reflect relative size of 2015 net sales Standard Packaging High-Value Components 0% 5% 10% 15% 20% 0% 30% 60% 2015 Category Gross Margin % Proprietary Devices Contract Manufacturing 2015 GM 32.6% 5-Yr Sales CAGR 6.7% Product net sales & margin growth 2011-2015 compound annual net sales growt
Slide 14: Deep technical expertise
Deep technical expertise 14 ~2,500 Employees have worked 10+ years >65 Projects in development >850 Issued patents and pending patent applications 12 Number of R&D Innovation Sites
Slide 15: Innovation & Technology: Current Developments
Innovation & Technology Current Developments 15 Container Systems NovaPure 1-3 mL Verux launch Flip-Off Seal RS/RU Crystal Zenith platform launches Delivery Systems SmartDose development Innovation Center in Israel Patient-centric approach
Slide 16: West solutions: Next generation delivery
West solutions: Next generation delivery 16 Customization Dosages ranging from 1 mL – 10 mL Preloaded & pre-sterilized Patient-centric approach Customer process simplification
Slide 17: First quarter 2016 summary results
First quarter 2016 summary results ($ millions, except earnings per-share (EPS) data) 17 (1) “Please refer to “Reconciliation of Non-GAAP Measures” at the end of these materials for more information. Three Months Ended March 31, 2016 2015 Reported Net Sales $362.1 $335.9 Net Sales at Constant Curren
Slide 18: Proprietary Products, 80% of total sales
18 Proprietary Products, 80% of total sales BIOLOGICS Double-digit organic sales growth GENERICS Double-digit organic sales growth PHARMA Mid-single digit organic sales growth Low-single digit organic sales growth CONTRACT- MANUFACTURED PRODUCTS Q1 2016 Highlights 20% of total High-Value Product Off
Slide 19: 2016 Full-year guidance
2016 Full-year guidance ($ millions, except EPS - Non-GAAP) (1) (2) 19 Estimated 2016 Revenue Estimated Gross Profit % Proprietary Products $1,180 - $1,190 37.7% to 38.2% Contract-Manufactured Products $310 - $320 17.4% to 18.4% Consolidated $1,490 - $1,510 33.5% to 34.0 % Est. Capital Spending $150
Slide 20: Cash-flow and allocation
20 Strong Operating Cash Flow Capital Allocation Priorities: Investing in our business Dividends Inorganic growth Debt repayment Stock repurchase Cash-flow and allocation Artist rendering: new plant in Waterford, Ireland
Slide 21: Building for the Future
Building for the Future Market-led strategy addressing the specific needs of pharmaceutical, biotechnology, generic and medical device customers Strong competitive position with high barriers to entry Quality culture Designed into regulated products Scientific and technical expertise Global Op
Slide 22: Appendix: Reconciliation of non-GAAP measures
Appendix: Reconciliation of non-GAAP measures 22 2015 2014 2013 2012 2011 Diluted EPS Reported (GAAP) $1.30 $1.75 $1.57 $1.15 $1.08 Pension settlement charge 0.43 - - - - Executive retirement and related costs 0.09 - - - - License costs - 0.01 - - - Discrete tax items 0.01 0.02 0.06 0.03 0.02 Restru
Slide 23: Reconciliation of Net Sales to Net Sales at Constant Currency
Reconciliation of Net Sales to Net Sales at Constant Currency(1) (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect during the comparable prior-year
Slide 24: Reconciliation of adjusted diluted EPS guidance to reported
(1) Please refer to “Notes to Non-GAAP Financial Measures” in West’s April 28, 2016 press release. (2) Guidance includes various currency exchange rate assumptions, most significantly the Euro at $1.12 for the remainder of 2016. Actual results will vary as a result of exchange rate variability. Reco
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