West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS Securities "New Ideas for the New Year" Conference 2012
16 slides from West Pharmaceutical Services's conference presentation, Jan 11, 2012
Slide 1: West Pharmaceutical Services, Inc. - CJS Securities Conference
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com © 2012 by West Pharmaceutical Services, Inc., Lionville, PA. All rights reserved. This material is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitt
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: Globally diversified developer and manufacturer of injectable drug packaging and delivery components
West is a globally diversified developer and manufacturer of components and assembled systems for the packaging and delivery of injectable drugs, diagnostic systems, and consumer products. On average, approximately 100 million components manufactured by West and our Global Partners are used to enhan
Slide 4: A Diverse, Stable Customer Base
PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers)
Slide 5: Packaging Segment Overview
$840-$860 Packaging Systems Packaging Segment Overview 2011 Revenue Estimate ($ millions ) • Market leader • Strong recurring revenue base • Global manufacturing • Steady growth in base • Expected growth will be driven by: added value per unit sold; geographic expansion; and growth in key therapeuti
Slide 6: Value-Added Product Strategy
Value-Added Product Strategy Standard High-Value Products Products Revenue Opportunity ($ per unit) Plungers and sleeve stoppers Stoppers Seals RU seals Westar ® RU
Slide 7: Delivery Systems Segment Overview
$340-$350 Delivery Systems Segment Overview • Customer owned IP • Project management • Automated assembly • Regulated products • Proprietary Product Development applies those capabilities to: • West-owned IP • Multiple product platforms focused on unmet delivery needs for biologics
Slide 8: Effect of Increasing Proprietary Device Sales
Revenue per-unit Consumer product manufacturing Medical device manufacturing Mix2Vial ® CZ vials CZ Syringes ConfiDose ® Effect of Increasing Proprietary Device Sales Contract Manufacturing Proprietary Devices Products SmartDose™
Slide 9: Growth Drivers Intact
• Packaging Systems Segment – Growth in emerging markets – Escalating regulatory and quality demands • Delivery Systems Segment – Growth in combination products that promote safety, dosing accuracy, ease of use, and deliver cost savings and product differentiation – Increasing awareness of glass qua
Slide 10: Therapeutic Category Growth Drivers
Category Key Customers Projected Growth Diabetes > 10 % Oncology > 10 % Vaccines > 10 % Autoimmune > 8% Generics >10% IMS April 2010 Report; Business Insights 2009; GBI Research 2009 Therapeutic Category Growth Drivers
Slide 11: Recent Highlights
Recent Highlights • First nine months of 2011: – Sales increased 4.5%, excluding currency – Gross and operating margin compressed by material costs, currency – Implemented mitigating surcharge mid-year • Updated long-term financial targets in Q3 2011 release & analyst call • 4th Quarter, Full-Year 2
Slide 12: Faster Growth of High-Value Products
Faster Growth of High-Value Products Pharmaceutical Packaging Systems
Slide 13: Major Influences on Gross Margin
Factors Pricing Unit Volume Sales mix Lean mfg. savings Raw material costs Labor costs Raw Material Costs Comprise approximately 1/3 rd of COGS Materials include: Synthetic elastomer and polymer and film (petroleum based), aluminum, natural rubber Commodity and currency volatility Mitigating factors
Slide 14: 2012 Outlook and Challenges
2012 Outlook and Challenges • Expect 4%-6% revenue growth in 2012, excluding currency – Will provide more detailed expectations on February analyst call • Pharmaceutical and Device markets: – New product pipelines showing signs of strength – Patent cliff front and center – Shift to large molecule pr
Slide 15: Summary
Pharmaceutical Packaging Systems Pharmaceutical Delivery Systems • Strong competitive position • Stability with growth potential • New products well positioned to meet future market needs • Financial strength to invest • FY 2011 Year End Call February 16 at 9:00AM Summary
Slide 16: West Pharmaceutical Services, Inc.
WEST PHARMACEUTICAL SERVICES, INC. Solutions for Injectable Drug Delivery NYSE:WST www.westpharma.com CJS Securities “New Ideas for the New Year” Conference New York, NY January 11, 2012
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