West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Investor Presentation (May 2017)
20 slides from West Pharmaceutical Services's investor presentation, May 17, 2017
Slide 1: West Pharmaceutical Services, Inc. May/June 2017
1 | West Pharmaceutical Services, Inc. May/June 2017
Slide 2: Safe Harbor Statement
2 | Safe Harbor Statement Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statemen
Slide 3: An Integral Part of the Healthcare Industry
3 | An Integral Part of the Healthcare Industry Top 50 Injectable biologics rely on West and Daikyo components ~ 41 Billion Components manufactured annually Top 75 Supplier to the top 75 pharmaceutical & biotech injectable companies
Slide 4: Sustained, Consistent Growth
4 | 0% 100% 200% 300% 400% 500% 2011 2012 2013 2014 2015 20162012 2013 2014 2015 2016 Net Sales Sustained, Consistent Growth 2012 2013 2014 2015 2016 Adjusted Diluted EPS* (Non-GAAP) Constant Currency CAGR 6.8% Comparison of Cumulative Five-Year Total Return S&P MidCap 400 Index West Pharmaceutical
Slide 5: West's Role in Delivering Medicines to Patients
5 | West’s Role in Delivering Medicines to Patients Proprietary Products Stoppers Seals Caps Syringe components Daikyo CZ vials & syringes Reconstitution systems Self-injection devices Contract Manufacturing Project management Engineering Injection molding Device assembly Advanced technologies $0.32
Slide 6: West Business at a Glance
6 | Net Sales* By Product Category Net Sales* By Geography Americas Europe, Middle East, Africa Asia Pacific 54% 39% 7% Net Sales* By Market Group High-Value Components Standard Packaging Delivery Devices Contract Manufacturing P R OPRI E T A R Y P R O D U C T S Pharma Generics Biologics Contract Ma
Slide 7: First-Quarter 2017 Highlights
7 | First-Quarter 2017 Highlights * Excluding the impact from translational changes in foreign exchange Net sales of $387.7 million, representing 8.7% organic sales growth* ‒ Proprietary Products organic sales growth of 8.0% ‒ Contract-Manufactured Products organic sales growth of 11.4% Expanded
Slide 8: Organic Sales Growth
8 | Organic Sales Growth Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 FY 2017E Overall Organic Sales Growth 10.5% 8.2% 10.0% 7.7% 8.7% 7-9% Pharma MSD HSD MSD HSD DD HSD Generics DD DD HSD (MSD) (MSD) MSD Biologics DD HSD DD DD MSD DD Contract Manufacturing LSD MSD MSD DD DD HSD Abbreviations: LSD – low-
Slide 9: First Quarter 2017 Summary Results
9 | First Quarter 2017 Summary Results ($ 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 16-20 for reconciliation of these items. Except as noted, statements in these slid
Slide 10: Change in Consolidated Sales
10 | $387.7 $23.7 $7.7 $362.1 2016 Volume & Mix Sales Price * Currency 2017 ($5.8) Change in Consolidated Sales First quarter 2016 to 2017 ($ millions) * Includes $4.9 million of inflationary increases in South America.
Slide 11: Change in Gross Profit Margin %
11 | 34.6% (1.3%) 1.0% 34.0% 2016 Efficiency Net Currency Sales Price Volume & Mix Plant OH & Other 2017 (0.3%) Change in Gross Profit Margin % First quarter 2016 to 2017 0.7% 0.5%
Slide 12: Our Pipeline of New Products is Robust
12 | STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION Increasing levels of customer intimacy Increasing value to West Next Generation of Self-Injection Delivery Devices Our Pipeline of New Products is Robust INJECTION MOLDING MULTI-COMPONENT ASSEMBL
Slide 13: Product Net Sales & Margin Growth 2012-2016
13 | Circles reflect relative size of 2016 net sales Standard Packaging High-Value Components 0% 5% 10% 15% 20% 0% 30% 60% 2016 Category Gross Margin % Proprietary Devices Contract Manufacturing 2016 GM 33.2% 5-Yr Sales CAGR 7.4% Product Net Sales & Margin Growth 2012-2016 compound annual net sales
Slide 14: Cash Flow and Balance Sheet Metrics
14 | Cash Flow and Balance Sheet Metrics ($ millions) CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Three Months Ended March 31, 2017 2016 Depreciation and amortization $23.3 $22.3 Operating cash flow (1) $20.7 $3.0 Capital expenditures $37.5 $39.0 As of Mar
Slide 15: 2017 Full-Year Guidance
15 | 2017 Full-Year Guidance ($ millions, except EPS) (1) (2) (3) (1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.05 for the remainder of 2017. Actual results will vary as a result of variability of exchange rates, among other items. (2) Assumes no
Slide 16: Non-GAAP Financial Measures
16 | These presentation materials use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in the U.S., and therefore are referred to as non-GAAP financial measures: Net sales at constant currency (organic sales)
Slide 17: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS
17 | Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS(1) ($ million, except EPS data) Three months ended March 31, 2016 Operating profit Income tax expense Net income Diluted EPS
Slide 18: Reconciliation of Net Sales to Net Sales at Constant Currency
18 | Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) Reconciliation of Net Sales to Net Sales at Constant Currency(1) ($ million, except EPS data) (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional cur
Slide 19: Notes to Non-GAAP Financial Measures: Full Year 2017 Guidance
19 | Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Financial Guidance” and “Non-GAAP Financial Measures” in the Company’s earnings press releases and SEC filings, as well as “Cautionary Statement” (Slide 2) for an explanation and reconciliation of these it
Slide 20: Reconciliation of Reported and Adjusted Diluted EPS
20 | Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) Reconciliation of Reported and Adjusted Diluted EPS(1) 2016 2015 2014 2013 2012 Diluted EPS Reported (GAAP) $1.91 $1.30 $1.75 $1.57 $1.15 Restructuring and related charges 0.23 - - - 0.05 Venezuela currency dev
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