West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q2 2012 Earnings Presentation
17 slides from West Pharmaceutical Services's earnings presentation, Aug 2, 2012
Slide 1: Second-Quarter 2012 Analyst Conference Call
West Pharmaceutical Services, Inc. Second-Quarter 2012 Analyst Conference Call 9 a.m. Eastern Time, August 2, 2012 A webcast of today’s call can be accessed in the “Investors” section of the Company’s web site Speakers: www.westpharma.com Donald E. Morel, Jr. To participate please dial: Chairman and
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
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 include, but are not limi
Slide 3: Summary Results
Summary Results $ millions, except per-share data (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 13-16), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press release for an explanation and r
Slide 4: Second-Quarter Operating Results
Second-Quarter Operating Results • Sales Grew 5.5% (11.3% at constant currency) – Pharmaceutical Packaging Systems 6.1% (13.1% at constant currency) • High-value products grew 28.4% at constant currency • Customers’ new products, increasing inventory requirements, lead times fuel sales • Backlog con
Slide 5: Expansion and Product Development
Expansion and Product Development • Asian expansion on schedule: – China first production in Q1 2013; India in 2014 • NovaPure® introduction • Q2 results validate investments in capacity, new products – Utilization of recently-expanded capacity is high – Envision products leading growth in high-valu
Slide 6: Change in Consolidated Sales, Second-Quarter 2011 to 2012
| _ _ _—_ LT West @ Delivering Innovative Solutions Changein ConsolidatedSales Second-Quarter 2011 to 2012 ($ millions) $10.6 ($17.9) $307.9 2011 Sales Volume & Price Currency 2012 Sales Mix
Slide 7: Change in Consolidated Gross Profit Margin %
| cc TT West @ Delivering Innovative Solutions Changein ConsolidatedGross Profit Margin % Second-Quarter 2011 to 2012 1.4% 0.1% (0.9%)
Slide 8: Change in Second-Quarter SG&A Costs
West® | cc Delivering Innovative Solutions Change in Second-Quarter SG&A Costs 2011 to 2012 ($ millions) $0.5 $1 9 SSS $1.8 zz Ss $1.8 RW
Slide 9: Cash Flow Metrics
Cash Flow Metrics ($ millions) Six Months Ended June 30, 2012 2011 Depreciation and amortization $37.4 $38.8 Operating cash flow $66.0 $49.2 Capital expenditures $69.4 $37.8 9
Slide 10: Summary Balance Sheet Information
Summary Balance Sheet Information ($ millions) As of June 30, December 31, 2012 2011 Cash and cash equivalents $107.0 $91.8 Debt $385.5 $349.4 Equity $679.5 $654.9 Net debt to total invested capital† 29.1% 28.2% Working capital $196.8 $228.8 † Net debt to total Invested capital is a Non-GAAP measure
Slide 11: 2012 Full-year Financial Guidance
2012 Full-year Financial Guidance Estimated Estimated Gross ($ millions, except EPS) 2012 Revenue(1) Profit %(1) Pharmaceutical Packaging $900 - $920 34.2% Systems Segment Pharmaceutical Delivery $340 - $350 19.6% Systems Segment Consolidated $1,240 - $1,270 30.2% 2012 Adjusted Diluted EPS(1)(2) Est
Slide 12: Selected Factors Impacting Second-Half 2012 and Comparisons
Selected Factors Impacting Second-Half 2012 and Comparisons • Stronger US dollar impact on reported sales, profits from international operations vs. first half and prior year • Pricing changes vs. prior year smaller than first half 2012 • Normal seasonality: West and customer shutdowns for summer an
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures(1) Three Months Ended June 30, 2012 and 2011 (in millions, except per share data) As Reported Restructuring, Acquisition- Non-GAAP June 30, impairment & related Extinguishment June 30, 2012 related charges contingencies of debt 2012 Operating profit $35.6 $3.7 $0.2 $- $39
Slide 14: Notes to Non-GAAP Financial Measures
NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. These presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accepted accounting princi
Slide 15: Notes to Non-GAAP Financial Measures
NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. value of one of our product lines no longer exceeded the carrying value of the related assembly equipment and intangible asset. The remaining charges were restructuring and relate
Slide 16: Reconciliation of 2012 Adjusted Diluted EPS Guidance
NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. WEST PHARMACEUTICAL SERVICES, INC. RECONCILIATION OF 2012 ADJUSTED DILUGED EPS GUIDANCE TO 2012 REPORTED GUIDANCE Full Year 2012 Guidance (1) Adjusted diluted EPS guidance $2.60 t
Slide 17: Slide 17
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