West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Investor Conferences May 2015

26 slides from West Pharmaceutical Services's conference presentation, May 13, 2015

  1. Slide 1: West Pharmaceutical Services, Inc. Investor Conferences May 2015

    1 West Pharmaceutical Services, Inc. Investor Conferences May 2015

  2. Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995

    2 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 li

  3. Slide 3: Today's Presentation

    3 Today’s Presentation West: Long- Established Partner Leading Packaging Systems Franchise Advancing Delivery Systems Businesses Strong Financial Position Positioned for Future Growth

  4. Slide 4: Why West?

    4 90 YEARS OF HISTORY INNOVATION MARKET LEADING SOLUTIONS Why West?

  5. Slide 5: CEO Succession

    5 CEO Succession  Eric M. Green became West’s sixth Chief Executive on April 24, 2015 • Joined West after 22 years at Sigma-Aldrich  Most recently as president of $1.4 billion research business unit  Donald E. Morel, Jr. PhD remains Chairman through June 2015 • CEO from April 2002 • Chairman sinc

  6. Slide 6: The West Transition

    6 Initiated strategic transformation in 2001 to become a leading global supplier of value-added pharmaceutical packaging systems and components 2014 $1.42 B CAGR is the compound annual growth rate based on reported sales, excluding discontinued operations Acquisitions of businesses and technologies

  7. Slide 7: A Solid Commercial Base

    7 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE INDUSTRY-LEADING MARKET SHARES IN EUROPE AND NORTH AMERICA A Solid Commercial Base

  8. Slide 8: West Delivers on Global Market Drivers

    8 West Delivers on Global Market Drivers Injectables Focused Global Reach Quality Culture Ability to Reduce Costs Delivery Solutions Advanced biologic treatments for chronic diseases Globalization and consolidation Stricter regulatory and compliance standards Value-driven marketplace Differentiation

  9. Slide 9: Injectable Therapies on the Rise

    9 Injectable Therapies on the Rise Vials Unit Growth CAGR 10-13* Unit Growth Outlook 13- 18** Syringes Cartridges Cartridges 4% 10% 8-10% 4-5% Syringes 5-6% *IMS Institute **Pharma Congress 2014, F. Haefele – BI, March 2014 Vials 3% • Antibiotics • Anti-Diabetics • Cancer • Rare Diseases • Vaccines

  10. Slide 10: Biologics—A Growing Share of Medicines

    10 Biologics—A Growing Share of Medicines 2002 11% $46 Bn 2017 Estimate 19-20% $221 Bn Biologics % share and sales values • Biologics growth driven by monoclonal antibodies (MAbs) and insulin • Biosimilars and non-original biologics (NOBs) have emerged, taking a small portion of the total market • S

  11. Slide 11: Business Segments

    11 Business Segments 2014 Revenues (millions) Consolidated $1,421 Packaging Systems $1,020 Delivery Systems $402  Primary packaging components for liquid and lyophilized Rx: • Vials • Prefillable syringes • Cartridges • IV containers  Secondary packaging components  Elastomers for single-use syri

  12. Slide 12: Packaging Systems

    12 Packaging Systems  Sales 6.0% CAGR over past 5 years (through 2014)*  High-value products 11.2% CAGR over past 5 years • FluroTec ® coatings • NovaPure® components • Envision™ inspection • Westar ® processing • Daikyo RS and RU products * Excludes currency

  13. Slide 13: Competitive Advantages Packaging Systems

    13 Competitive Advantages Packaging Systems  “Designed-in” primary packaging (barrier to change)  Strong IP base: • materials/process • manufacturing technology (HVPs)  Global capabilities for global customers $750 $850 $950 $1,050 2010 2011 2012 2013 2014 Packaging Systems Sales ($M)

  14. Slide 14: A Trusted Partner

    14 West and Daikyo components The Top 50 pharma and biotech companies in the world rely on The top 35 injectable biologics rely on West and Daikyo components > 130 million needle safety systems annually > 100 million components and assemblies for pens and auto-injectors annually A Trusted Partner

  15. Slide 15: New Biologics Face Increasing Challenges

    15 New Biologics Face Increasing Challenges Trends  Long-acting/depot injections  Smaller batch sizes  Technical constraints • Sensitivities • High concentration • Viscosity • Delivery route  Increasingly competitive Implications  New ways to deliver medicine  New manufacturing approach • Flex

  16. Slide 16: High-Value Product Sales, Margin Growth

    High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2010-2014 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2014 sales Disposable Components Standard Packaging High-Value Products -5.0% 0.0% 5.0% 10.0% 15.0% 0.0% 70.0% 5 Y e a r C A G R

  17. Slide 17: Delivery Systems

    17 Delivery Systems  Sales CAGR of 7.4% over past 5 years (through 2014)*  Proprietary products grew 20% per annum over past 5 years • Daikyo Crystal Zenith® vials and syringes • SmartDose® electronic wearable bolus injector • Mix2Vial administration device • érisTM safety system  Tech Group * Ex

  18. Slide 18: Contract Manufacturing

    Contract Manufacturing ) West€ Ss Tad The Tech Group j ee cat A West Company

  19. Slide 19: Competitive Advantages Delivery Systems

    19 Competitive Advantages Delivery Systems  Contract Manufacturing • Engineering • Project Management • Tooling  Established proprietary product sales: • Drug Reconstitution and Administration • Needle Safety • CZ Vials $300 $350 $400 $450 2010 2011 2012 2013 2014 Delivery Systems Sales ($M)

  20. Slide 20: Proprietary Product Sales, Margin Growth

    Proprietary Product Sales, Margin Growth Pharmaceutical Delivery Systems 2010-2014 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2014 sales SmartDose® Proprietary Contract Manufacturing 0.0% 5.0% 10.0% 15.0% 20.0% 0.0% 40.0% 5 Y e a r C A G R Category Gross

  21. Slide 21: Our Growth Initiatives 2015-2019

    Packaging Systems Delivery Systems  Build on Delivery Systems capabilities and proprietary products:  Daikyo Crystal Zenith®  Drug administration aids  Self-dosing devices/combination products Our Growth Initiatives 2015-2019  High-value products: modest unit growth, increasing ASP* and margin

  22. Slide 22: Level of Customer Engagement

    22 Level of Customer Engagement V al u e to W e s t Strategic Focus: Integrating Primary Container and Device Elements of the Delivery System • CZ syringe + other auto-injector • ConfiDose® + glass • SmartDose® + glass • éris™ & NovaGuard™ safety + glass • Molded systems Integrated Delivery Systems

  23. Slide 23: Progress on New Proprietary Products

    23 Progress on New Proprietary Products  SmartDose® Electronic Wearable Injector • 8 active development projects • Phase III clinical trial • Shipped in 2014:  > 100,000 units  > 800,000 cartridges  Daikyo Crystal Zenith® Vials and Syringes • Over 30 products approved in JP, NA, EU • Doubled # o

  24. Slide 24: Geographic Expansion

    24 Geographic Expansion  Completed India metals facility • Production initiated - 7/14 • Product transfers from Singapore  Free-up Singapore for more HVPs  Initiated Waterford, Ireland expansion • Phase 1 construction commencing - Q2/15  Expanded Kinston site to include high- value processing fo

  25. Slide 25: Take-Away Messages

    25  Key partner to pharmaceutical, biotech, and medical device customers  “Sticky” core business – significant barriers to entry  Strong competitive position • Diversified customer base • Maturing proprietary technology pipeline • Global footprint with strong position in fast growing Asian market

  26. Slide 26: West Pharmaceutical Services, Inc.

    26 West Pharmaceutical Services, Inc.

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