West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q3 2017 Earnings Presentation
17 slides from West Pharmaceutical Services's earnings presentation, Oct 26, 2017
Slide 1: Third-Quarter 2017 Analyst Conference Call
West Pharmaceutical Services, Inc. Third-Quarter 2017 Analyst Conference Call 9 a.m. Eastern Time, October 26, 2017 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer A webcast of today’s call can be accessed in the “
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: Third-Quarter 2017 Results
Third-Quarter 2017 Results (1) Excluding the impact from translational changes in foreign exchange. (2) Includes $9.1 million of income for reimbursed costs associated with a technology that was subsequently licensed to a third party. Net sales of $398.2 million, representing 3.7% organic sales gr
Slide 4: Organic Sales Growth
Organic Sales Growth 4 | Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Updated FY 2017E Guidance Overall Organic Sales Growth 10.0% 7.7% 8.7% 3.9% 3.7% approx. 6% Pharma MSD HSD DD MSD (LSD) MSD Generics HSD (MSD) (MSD) (MSD) LSD FLAT Biologics DD DD MSD MSD LSD HSD Contract Manufacturing MSD DD DD DD DD
Slide 5: Commercial Highlights
Commercial Highlights Double-digit sales growth from Envision® and NovaPure® AccelTRA® program meets unique market needs West’s ID Adapter addresses intradermal delivery challenges Wearables portfolio continues to grow 5 | ID Adapter
Slide 6: 2017 Revised Outlook
2017 Revised Outlook 2017 net sales range: $1.595 billion to $1.605 billion(1), compared to a prior range of $1.585 billion to $1.600 billion Full-year 2017 net sales organic sales growth guidance of approximately 6% 2017 adjusted-diluted EPS(2) guidance: $2.74 to $2.79(1), compared to a prior
Slide 7: 2018 Preliminary Sales Outlook and Long-Term Financial Construct
2018 Preliminary Sales Outlook and Long-Term Financial Construct 2018 organic sales growth is expected to be in a range of 6% to 8% Long-term financial construct: ‒ Components and contract manufacturing business to grow in a 6% to 8% range ‒ Proprietary delivery systems to generate incremental s
Slide 8: Third Quarter 2017 Summary Results
8 | Third Quarter 2017 Summary Results ($ millions, except earnings-per-share (EPS) data) (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 14-17 and the discussion under the heading “Non-GAAP Financial Measures” in today’
Slide 9: Change in Consolidated Net Sales Third quarter 2016 to 2017
$398.2 $11.1 $7.7 $2.7 $376.7 2016 Volume & Mix Currency Sales Price 2017 Change in Consolidated Net Sales Third quarter 2016 to 2017 ($ millions) 9 |
Slide 10: Change in Gross Profit Margin Third quarter 2016 to 2017
31.4% (0.1%) (0.1%) (0.2%) (2.3%) 1.5% 0.5% 32.1% 2016 Efficiency Sales Price Volume & Mix Net Currency Raw Material Plant OH & Other 2017 Change in Gross Profit Margin % Third quarter 2016 to 2017 10 |
Slide 11: Change in SG&A Costs Third quarter 2016 to 2017
Change in SG&A Costs Third quarter 2016 to 2017 ($ millions) $61.5 $1.5 $1.9 $1.7 $0.7 $0.4 $58.3 2016 Comp and Benefits Outside Services Currency Translation Other US Pension 2017 15.5% of Net Sales 15.4% of Net Sales 11 |
Slide 12: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) 12 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Nine Months Ended September 30, 2017 2016 Depreciation and amortization $71.8 $67.9 Operating cash flow (1) $181.8 $147.6 Capital expenditures $101.3 $122.7 A
Slide 13: 2017 Full-Year Guidance
2017 Full-Year Guidance ($ millions, except EPS) (1) (2) (3) (1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.18 for the remainder of 2017. Actual results will vary as a result of variability of exchange rates, among other items. (2) Includes favora
Slide 14: Notes to Non-GAAP Financial Measures
Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in the U.S., and therefore are referred to as non-GAAP financial measures:
Slide 15: Notes to Non-GAAP Financial Measures: Reconciliation
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 15 | Reconciliation of Reported and Adjusted
Slide 16: Reconciliation of Net Sales to Net Sales at Constant Currency
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 14-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 16 | Reconciliation of Net Sales to Net Sale
Slide 17: Reconciliation of Reported Diluted EPS Guidance to Adjusted Guidance
17 | Reconciliation of Reported Diluted EPS Guidance to Adjusted Diluted EPS guidance Full Year 2017 Guidance(1) (2) (3) Reported-diluted EPS guidance $2.59 to $2.64 Venezuela deconsolidation 0.15 Adjusted-diluted EPS guidance $2.74 to $2.79 (1) Please refer to “Notes to Non-GAAP Financial Measures”
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