West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Q1 2018 Earnings Presentation

14 slides from West Pharmaceutical Services's earnings presentation, Apr 26, 2018

  1. Slide 1: First-Quarter 2018 Analyst Conference Call

    West Pharmaceutical Services, Inc. First-Quarter 2018 Analyst Conference Call 9 a.m. Eastern Time, April 26, 2018 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer  A webcast of today’s call can be accessed in the “In

  2. 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

  3. Slide 3: 2018 First-Quarter Results & Full-Year Outlook

    2018 First-Quarter Results & Full-Year Outlook  Q1 reported net sales of $415.7 million, representing 0.2% organic sales growth ‒ Excluding impact of Venezuela deconsolidation & loss of consumer-product contract manufacturing customer, organic sales growth would have been 4.1% ‒ Despite headwinds,

  4. Slide 4: Organic Sales Growth

    Organic Sales Growth 4 | Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Overall Organic Sales Growth 8.7% 3.9% 3.7% 4.5% 0.2% Biologics MSD MSD MSD* DD (LSD) Generics (MSD) (MSD) LSD HSD HSD Pharma DD HSD* (MSD)* (MSD)* (HSD) Contract Manufacturing DD DD DD DD HSD Abbreviations: LSD – low-single digit; MSD

  5. Slide 5: Global Operations Update

     Improved results in service & quality to customers ₋ Lead times continue to improve across manufacturing sites ₋ Key customer supply chain partnership progressing ₋ Global network optimization & restructuring program on track  New Waterford, Ireland site producing commercial sales in 2018 Global

  6. Slide 6: First-Quarter 2018 Summary Results

    6 | First-Quarter 2018 Summary Results ($ millions, except earnings-per-share (EPS) data) (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 12-14 and the discussion under the heading “Non-GAAP Financial Measures” in today’

  7. Slide 7: Change in Consolidated Net Sales First-quarter 2017 to 2018

    $27.3 $10.5 $4.9 $387.7 2017 Currency Volume & Mix Sales Price Venezuela / Consumer 2018 $415.7 * Change in Consolidated Net Sales First-quarter 2017 to 2018 ($ millions) 7 | * Includes $3 million revenue reduction related to the adoption of new accounting guidance in Q1 2018. ($14.7)

  8. Slide 8: Change in Gross Profit Margin % First-quarter 2017 to 2018

    32.3% (0.4%) (1.2%) (1.5%) (1.5%) 1.5% 0.8% 34.6% 2017 Efficiency Sales Price Raw Material Volume & Mix Plant OH & Other Venezuela / Consumer 2018 Change in Gross Profit Margin % First-quarter 2017 to 2018 8 |

  9. Slide 9: Change in SG&A Costs First-quarter 2017 to 2018

    Change in SG&A Costs First-quarter 2017 to 2018 ($ millions) $68.3 $1.8 $2.6 $2.3 $1.9 $0.8 $62.5 2017 Comp and Benefits Currency Translation Outside Services Other Venezuela 2018 16.1% of Net Sales 16.4% of Net Sales 9 |

  10. Slide 10: Cash Flow and Balance Sheet Metrics

    Cash Flow and Balance Sheet Metrics ($ millions) 10 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Three Months Ended March 31, 2018 2017 Depreciation and amortization $26.4 $23.3 Operating cash flow $45.0 $20.7 Capital expenditures $28.0 $37.5 As of March

  11. Slide 11: Full-Year 2018 Guidance

    Full-Year 2018 Guidance  Reaffirming full-year 2018 reported net sales guidance range of $1.720 billion to $1.730 billion*  No change in full-year 2018 net sales organic growth guidance of 6-8% range ‒ Excluding 2017 net sales that will not recur in 2018, constant-currency sales growth is expected

  12. Slide 12: Notes to Non-GAAP Financial Measures

    Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in the U.S., and therefore are referred to as non-GAAP financial measures: 

  13. Slide 13: Notes to Non-GAAP Financial Measures: Reconciliation

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 12-14), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 13 | Reconciliation of Reported and Adjusted

  14. Slide 14: Reconciliation of Reported-Diluted EPS Guidance to Adjusted

    14 | Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS guidance Full Year 2018 Guidance(1) (2) Reported-diluted EPS guidance $2.66 to $2.81 Restructuring and related charges 0.08 to 0.13 Tax law changes 0.01 Adjusted-diluted EPS guidance $2.80 to $2.90 (1) Please refer to “Note

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