West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Sidoti & Company 6th Annual Palm Beach Emerging Growth Institutional Investor Forum (January 2009)
31 slides from West Pharmaceutical Services's conference presentation, Jan 14, 2009
Slide 1: Sidoti Palm Beach Emerging Growth Investor Forum
Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com Sidoti & Company LLC 6 th Annual Palm Beach Emerging Growth Instit
Slide 2: Forward-looking statements
Certain statements in the following slides and certain statements that may be made by management of the Company orally during this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange A
Slide 3: Who We Are
Who We Are • Founded in 1923 • Global Headquarters near Philadelphia • Market capitalization $1.2 billion • World’s premier manufacturer of components and systems for injectable drug delivery – Closure systems and prefillable syringe components – Components for disposable systems – Devices and devic
Slide 4: What We Do
• Stability/efficacy/shelf life • Safety; “Quality by Design” • Time to market • Component selection • Reconstitution • Safety (needles and exposure) • Convenience/Compliance • Dosing accuracy • Ease of use • Compliance • Convenience DRUG PACKAGING DRUG PREPARATION DRUG ADMINISTRATION What We Do Pro
Slide 5: West's Competitive Advantage
West’s Competitive Advantage • Global manufacturing footprint • Unmatched experience/expertise: drug - material interface – Global regulatory and technical support • Protected IP: Proprietary materials and technology • Regulatory barrier to entry: US NDA and ANDA filing must include reference to all
Slide 6: Diverse, Stable Customer Base
Diverse, Stable Customer Base
Slide 7: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 8: Sales by region
South America 5% North America 49% Europe 42% Asia/Pacific 4%
Slide 9: 2008 Overview
2008 Overview • A challenging year – Exubera, ESA packaging, diagnostic component lost sales impact – Commodity, currency market instability – Global economic downturn • Strong growth in core component sales • Tech restructuring completed • China plant construction underway • Expansion programs on s
Slide 10: Market Dynamics Support Future Growth
Market Dynamics Support Future Growth • Increasing number of patients with chronic illnesses • Many of these are treated with biologic drugs • Biologic drugs demand ultra- clean delivery systems • Point of Care Shift: Hospital to Specialty Clinic to Home • Safe, accurate dosing needs are pushing the
Slide 11: Our Growth Opportunities
Drug Packaging (How it is contained) Drug Delivery (How it gets into the patient) Primary Container Solutions Prefillable Syringe Systems Administration Systems Advanced Injection Systems Development Primary Package Administration Our Growth Opportunities
Slide 12: Corporate Growth Strategy
Corporate Growth Strategy Pharmaceutical Systems • Primary Drug Packaging – Enhance quality and value of components – Lean manufacturing • Innovative materials and systems • Selective acquisitions • Geographic expansion
Slide 13: Primary Drug Packaging
Primary Drug Packaging West FluroTec ® Components Seal - - Stopper - Vial Daikyo Crystal Zenith ® Vials Estimated Market Size - $1.5 billion CAGR - - 4% Source: Company estimate for vial systems only West Spectra™ Seals Crystal Zenith is a registered trademark of Daikyo Seiko, Ltd. FluroTec and Crys
Slide 14: Building Value in the Drug Packaging Market
Building Value in the Drug Packaging market Uncoated 4432/50 V35 $50 $200 4432/50 S2 FluroTec ® Westar RS $250 4432/50 S2 FluroTec ® Westar RS B2-40 Port Bag $300 4432/50 S2 FluroTec ® Westar ® RS B2-40 (1000 packs) $465 4432/50 Sterile S2 W (RU) Ready Pack (1000 packs) $2,900 RU Ready Pack Syst
Slide 15: Corporate Growth Strategy
Corporate Growth Strategy Pharmaceutical Systems • Primary Drug Packaging – Enhance quality and value of components – Lean manufacturing • Innovative materials and systems • Selective acquisitions • Geographic expansion – Capacity build - Europe, Singapore, North America – China Plastics – India Rub
Slide 16: Europe Plant Investments
Europe Plant Investments LeNouvion plant LeNouvion clean room Eschweiler molding Eschweiler plant Eschweiler, Germany Compression molding facility LeNouvion, France Compression molding facility
Slide 17: Europe Plant Investments
Europe Plant Investments Kovin plant Kovin packing area Bodmin tool building Bodmin, UK Tool building facility Kovin, Serbia Compression molding facility Bodmin plant
Slide 18: U.S. Plant Investments
U.S. Plant Investments Clearwater plant Kinston plant Kinston compounding area Clearwater seal assembly Clearwater, FL Aluminum seal manufacturing Kinston, NC Compression molding facility
Slide 19: China Expansion
China Expansion China plant (rendering) Suzhou, China Precision injection molding facility
Slide 20: Plastic Plant - Construction activities
Plastic Plant - Construction activities
Slide 21: India represents a significant growth opportunity
India represents a significant growth opportunity Two regions being evaluated: Ahmedabad Hyderabad Broad generic infrastructure Rapidly growing R&D Strong biologics focus
Slide 22: Corporate Growth Strategy
Corporate Growth Strategy • Tech Group - Safety and Administration Systems • Build market share in multi-component systems for drug administration • Expand proprietary product portfolio through innovation and strategic technology acquisitions
Slide 23: Safety and Administration Systems
Safety and Administration Systems Vial2Bag™ Mix2Vial ® MixJect ® Total Market - $1.5 billion CAGR - - 11% Source: Greystone Associates and Company estimate Orion Safety System
Slide 24: New Products 2009 - 2013
New Products 2009 - - 2013 Auto-injector System Daikyo Crystal Zenith ® prefillable syringes Daikyo Crystal Zenith ® is a registered trademark of Daikyo Seiko, Ltd.
Slide 25: Critical Stability Issues for Biotechnology Drugs
Critical Stability Issues for Biotechnology Drugs • Aggregation – Silicone, Tungsten, Glue, Mfg. Processing • Adsorption - - vials and syringes – Impacts potency of large molecules • Immunogenicity/Neurogenicity • Polysorbate 20 and 80 – Detergents used for mitigating aggregation – Highly unpredicta
Slide 26: Model antibody aggregation: glass vs Crystal Zenith
Model antibody Higher extent of aggregation in Glass compared to CZ Daikyo Crystal Zenith ® Glass
Slide 27: Management Operating Priorities 2009
• Generate organic growth • Improve operating margin • Continue investing for the future – Innovation programs • New product launches – Geographic expansion: China, India – Capacity Expansion: Europe, North America – Information systems – Selective technology/product acquisitions • Maximize operatin
Slide 28: September Results
September Results ($ in millions, except per share data) * 2008 diluted EPS from continuing operations excludes an $0.11 per share net gain on a contract settlement related to a discontinued product line, a $0.05 per share impact of Tech restructuring charges and $0.09 per share of discrete tax bene
Slide 29: Capital Management
Capital Management ($ millions, except %) 9/30/08 12/31/07 Total Debt $ 382.5 $ 395.1 Total Capitalization 920.5 886.0 Debt to Total Invested Capital 41.6% 44.6% Cash $ 102.5 $ 108.4 Net Debt to Total Invested Capital 34.2% 36.9% Year-To-Date Capital Spending $ 88.2 $ 129.4
Slide 30: Summary
Summary • Fundamental business drivers remain unchanged • Long term growth opportunities intact • Solid balance sheet • Seasoned, experienced management team – Incentives closely tied to growth in shareholder value • Year end call Thursday February 19 9:00AM
Slide 31: Investor Relations Contact
Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer William J. Federici Vice President and Chief Financial Officer Investor Relations Contact: Michael A. Anderson Vice President and Treasurer mike.anderson@westpharma.com Sidoti & Company LLC 6 th Annual Palm Beach Emerging Growth Instit