West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q4 2011 Earnings Presentation
16 slides from West Pharmaceutical Services's earnings presentation, Feb 16, 2012
Slide 1: Fourth-Quarter 2011 Analyst Conference Call
West Pharmaceutical Services, Inc. Fourth-Quarter 2011 Analyst Conference Call 9 a.m. Eastern Time, February 16, 2012 A webcast of today’s call can be accessed in the “Investors” section of the Company’s web site www.westpharma.com Speakers: To participate please dial: Donald E. Morel, Jr. U.S. Toll
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 13-15), “Cautionary Statement” (Slide 2) and see the “Restructuring and Other Items” section and “Supplemental Information and N
Slide 4: Fourth Quarter 2011 Operations
Fourth Quarter 2011 Operations • Sales Grew 6.8% (7.2% at constant currency) – Pharmaceutical Packaging Systems increased 8.6% (9.1% at constant currency) • High value products grew 12.1% (12.5% at constant currency) – Pharmaceutical Delivery Systems up 1.4% (1.6% at constant currency) • Contract Ma
Slide 5: Expansion and Product Development Update
Expansion and Product Development Update • Update on Asia Expansion – China rubber facility remains on schedule for 2012 completion and initial commercial production in 2013. – India land approval pending, construction work to follow • Kinston NC conversion and high-value capacity • NovaPure™ launch
Slide 6: Change in Consolidated Sales, Fourth-Quarter 2010 to 2011
1 cc Wes t @ Delivering Innovative Solutions Change in ConsolidatedSales Fourth-Quarter 2010 to 2011 $7.1 SS=az. $276.8 2010 Sales Volume & Price Currency 2011 Sales Mix
Slide 7: Change in Consolidated Gross Margin %, Fourth-Quarter 2010 to 2011
cc Wes t @ Delivering Innovative Solutions Change in ConsolidatedGross Margin % Fourth-Quarter 2010 to 2011 1.0% 0.3% (2.3%) 28.9%
Slide 8: Change in Fourth-Quarter SG&A Costs 2010 to 2011
West] $1.2 | Delivering Innovative Solutions Change in Fourth-Quarter SG&A Costs 2010 to 2011 ($ millions) $0.5 $0.2 $48.4 20 In SY, On Ay Cy, 20 70 enti, Ut ide (-) bag, ‘he, the, eney 17 9, 7) en Tes ‘0, " "Satic tion * ‘Rio, ” n
Slide 9: Cash Flow Metrics
Cash Flow Metrics ($ millions) Quarter Ended December 31, 2011 2010 Depreciation and amortization $18.4 $19.5 Operating cash flow $41.8 $47.2 Capital expenditures± $33.4 $21.3 ± Capital expenditure cash flows exclude amounts incurred in the period but unpaid at the balance sheet date, which were $14
Slide 10: Summary Balance Sheet Information
Summary Balance Sheet Information As of December 31, December 31, 2011 2010 Cash and cash equivalents $91.8 $110.2 Debt $349.4 $358.4 Equity $654.9 $625.7 Net debt to total invested capital† 28.2% 28.4% Working capital $228.8 $266.9 † Net Debt and Total Invested Capital are Non-GAAP measures. Net De
Slide 11: Estimated 2012 Revenue and Adjusted Diluted EPS
Estimated Estimated Gross ($ millions, except EPS) 2012 Revenue(1) Profit %(1)(2) Pharmaceutical Packaging $875 - $895 33.3% Systems Segment Pharmaceutical Delivery $340 - $350 20.1% Systems Segment Consolidated $1,215 - $1,245 29.6% 2012 Adjusted Diluted EPS(1)(2) Estimate $2.37- $2.55 (1) Guidance
Slide 12: Selected Factors That Impact Margin % in 2012
Selected Factors That Impact Margin % in 2012(3) Rising Raw-material costs: Costs rose in 2011, impacting gross profit margin by 2.3% in the fourth quarter and 2.2% for the year, excluding related price increases. If costs continue to rise, margins will narrow as there is a delay between market-driv
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures(1) Three Months Ended December 31, 2011 and 2010 (in millions, except per share data) Non-GAAP As Reported Acquisition- Special December December 31, Restructuring & related separation Discrete 31, 2011 related charges contingencies benefits tax items 2011 Operating profi
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 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 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. Acquisition-related contingencies: During the three months ended December 31, 2011, we increased the liability for contingent consideration related to our 2010 acquisition of tech
Slide 16: Slide 16
West Pharmaceutical Services — Q4 2011 Earnings Presentation on 6ix