West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q2 2011 Earnings Presentation
14 slides from West Pharmaceutical Services's earnings presentation, Jul 28, 2011
Slide 1: Second-Quarter 2011 Analyst Conference Call
Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Second-Quarte
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: Second Quarter 2011 Operations
Second Quarter 2011 Operations • Consolidated Sales Growth of 9.3% (2.8% at constant currency) – Pharmaceutical Packaging Systems 10.6% (2.4% at constant currency) • High value products grew 9.5% (3.2% at constant currency) – Pharmaceutical Delivery Systems 5.4% (3.1% at constant currency) • Gross M
Slide 4: Proprietary Product Developments
Proprietary Product Developments • Progress on Daikyo Crystal Zenith® Insert Needle Syringe – PDA/FDA Conference – Production capacity expansion is on schedule – Adding US vial capacity in response to growing interest • Electronic-Patch-Injector: “SmartDose™” – Increases dose volume possibilities –
Slide 5: Summary Results
($ millions, except per-share data ) Three Months Ended June 30, 2011 2010 Net Sales $ 307.9 $ 281.8 Gross Profit 84.6 83.2 Reported Operating Profit 27.8 30.5 Adjusted Operating Profit (1) 30.5 30.9 Reported Diluted EPS $ 0.57 $ 0.62 Adjusted Diluted EPS (1) $ 0.62 $ 0.64 Summary Results $ millions
Slide 6: Consolidated Revenues
—_—— TTT Wes t =) Delivering Innovative Solutions Consolidated Revenues Second-Quarter Revenue Changes 2010 - 2011 $18.3 $281.8 2010 Sales Volume & Price Currency 2011 Sales Mix
Slide 7: Consolidated Second Quarter Gross Margin %
=== West =) Delivering Innovative Solutions ConsolidatedSecond Quarter Gross Margin % 2010 - 2011 0 — 29.5% 23%) i (1.0%) (0.2%) | Bane
Slide 8: (2) 2011 amount excludes $2.1 million of “Special Separation Benefits”. See “Non-GAAP Financial Measures”
(2) 2011 amount excludes $2.1 million of “Special Separation Benefits”. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures”(Slides 12 - 14),“Cautionary Statement” (Slide 2) and today’s press release.
Slide 9: Cash Flow Metrics
Quarter Ended June 30, 2011 2010 Depreciation and amortization $19.3 $17.7 Operating cash flow $39.7 $31.6 Capital expenditures $18.4 $14.9 Cash Flow Metrics ($ millions)
Slide 10: Summary Balance Sheet Information
As of June 30, 2011 December 31, 2010 Cash and cash equivalents $110.4 $110.2 Debt $373.5 $358.4 Equity $696.0 $625.7 Net debt to total invested capital 27.4% 28.4% Working capital $317.7 $266.9 Summary Balance Sheet Information
Slide 11: Updated 2011 Full-year Financial Guidance
($ millions, except EPS) 2011 Revenue (1) Gross Profit % (1) Pharmaceutical Packaging Systems Segment $840 - $860 32.2% Pharmaceutical Delivery Systems Segment $330 - $340 19.3% Consolidated $1,170 - $1,200 28.6% 2011 Adjusted Diluted EPS (1)(2) $2.30 - $2.40 Updated 2011 Full-year Financial Guidanc
Slide 12: Non-GAAP Reconciliation of Operating Profit and EPS
As Reported June 30, 2011 Restructuring & related charges Acquisition- related contingencies Special separation benefits Non-GAAP June 30, 2011 Operating profit $27.8 $1.3 ($0.7) $2.1 $30.5 Interest expense, net 4.3 - - - 4.3 Income before income taxes 23.5 1.3 (0.7) 2.1 26.2 Income tax expense 5.3
Slide 13: 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 slides use non-GAAP financial measures. West believes that these non-GAAP measures of financial results provide useful information to management and investors regarding cert
Slide 14: Full Year 2011 Guidance Reconciliation
Full Year 2011 Guidance (1) Diluted Earnings Per Share Adjusted guidance $2.30 to $2.40 Restructuring, net of tax (0.10) to (0.09) Special retirement benefits (0.04) Acquisition-related contingencies 0.01 Reported guidance $2.17 to $2.28 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, p
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