West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Life Sciences Conference 2008
24 slides from West Pharmaceutical Services's conference presentation, Sep 23, 2008
Slide 1: UBS Global Life Sciences Conference
Exhibit 99.2 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 UBS Global Life Sciences Conference September 23, 200
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: Company Overview
Founded in 1923 Headquarters in Lionville, Pennsylvania (USA) Global production, sales and distribution Company Overview
Slide 4: Who We Are
Who We Are World’s premier manufacturer of components and systems for injectable drug delivery Closure systems and prefillable syringe components Components for disposable systems Devices and device sub-assemblies Safety and administration systems 2007 sales $1.02 billion Market capitalization $1.5
Slide 5: Diverse, Stable Customer Base
Diverse, Stable Customer Base Company-estimated market share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 6: Key Developments - 2008
Key Developments - 2008 Concluded Exubera ® Termination Gain Converting facility to alternative production needs Tech Group Restructuring in Progress Introduced Silicone-free Prefillable Syringe Received Approval for China Plastics Facility Construction in progress toward 2009 completion Significant
Slide 7: Sales and Income from Continuing Operations
Sales and Income from Continuing Operations ($ in millions)
Slide 8: Global Revenue Breakdown
Global Revenue Breakdown Based on 2007 Sales South America 5% North America 49% Europe 42 % Asia/Pacific 4%
Slide 9: West product brands
West® =e Westarrs West Westar Analytical Services Spectra 4) West lurolee. pecttae yy EADY PACK FLIP-OFF it CCSSEAL VeriSure. WEST Envision tyolec, CA RU
Slide 10: West's Competitive Advantage
West’s Competitive Advantage Unmatched experience/expertise: drug - material interface Ability to source components from multiple locations globally Protected IP: West’s components and systems Regulatory barrier to entry: US NDA and ANDA filing must include reference to all packaging/components in c
Slide 11: Market Dynamics Support Continued Growth
Market Dynamics Support Continued Growth Aging population creates an increasing number of patients with chronic illnesses such as diabetes and cancer Biologic drugs continue to grow Biologic drugs represent the fastest growing segment of the injectable pharma market (13% CAGR projected through 2010)
Slide 12: Future Growth Drivers
Future Growth Drivers Increasing number of patients with chronic illnesses Many of these are treated with biologic drugs Biologic drugs demand ultra- clean delivery systems Safe, accurate dosing needs are pushing the market toward integrating the container/ closure system into the delivery system We
Slide 13: Four Strategic Growth Platforms
Injectable Container Solutions Safety & Administration Systems Advanced Injection Systems Prefillable Syringe Systems Four Strategic Growth Platforms
Slide 14: Growth Platform: Injectable Container Solutions
Growth Platform 1 Injectable Container Solutions 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,
Slide 15: Growth Platform: Safety and Administration Systems
Growth Platform 2 Safety and Administration Systems Vial2Bag™ Mix2Vial ® MixJect ® Total Market – $1.5 billion CAGR – 11% Source: Greystone Associates and Company estimate Project Orion
Slide 16: Growth Platform: Prefillable Syringe Systems
Growth Platform 3 Prefillable Syringe Systems FluroTec ® Plungers Needle Shields, Tip Caps Daikyo Crystal Zenith ® 1mL LL Prefillable Syringe Daikyo Crystal Zenith ® Staked Needle Syringe Estimated Market Size – $900 million CAGR – 8% Source: Company estimates Crystal Zenith is a registered trademar
Slide 17: Convergence of Primary Containers and Delivery Systems
Convergence of Primary Containers and Delivery Systems Auto Injectors with Cartridges Traditional Injection System Components for Pen System Applications
Slide 18: Growth Platform: Advanced Injection Systems
West Advanced Injection System Platform 2 Staked Needle Prefillable Syringe Growth Platform 4 Advanced Injection Systems Plunger Primary Drug Container Lined Seal Platform 3 1mL Flanged Cartridge Estimated Market Size - $210 million CAGR – 8% Source: Greystone Associates and Company estimates
Slide 19: Management Operating Priorities
Grow revenues and earnings despite reduced sales of certain products Fundamental growth will offset lost revenue associated with Exubera ® , ESA drugs, etc. Generate Tech Group performance improvement Effectively manage global capacity expansion Continue investing for the future Innovation programs
Slide 20: Full Year Results
Full Year Results $1.83 $2.06 dEPS from Continuing Operations – GAAP $1.93 $2.37 dEPS from Continuing Operations - Non-GAAP $11.1 $16.1 Research & Development $61.5 $71.2 Income from Continuing Operations $147.8 $152.5 Selling, General & Administrative Exp. 29% 29% Gross Margin $913.3 $1,020.1 Net S
Slide 21: Second Quarter Results
Second Quarter Results $0.74 $0.82 dEPS from Continuing Operations - GAAP $3.8 $4.9 Research & Development $26.5 $28.7 Income from Continuing Operations $0.68 $0.73 dEPS from Continuing Operations - Non-GAAP $38.2 $40.9 Selling, General & Administrative Exp. 29% 30% Gross Margin $263.7 $279.3 Net Sa
Slide 22: Capital Management
Capital Management 36.9% 34.9% Net Debt to Total Invested Capital $ 108.4 $ 102.3 Cash $ 129.4 $ 53.2 Year-To-Date Capital Spending 44.6% 41.9% Debt to Total Invested Capital $ 886.0 $ 950.0 Total Capitalization $ 395.1 $ 398.2 Total Debt 12/31/07 6/30/08 ($ millions)
Slide 23: Summary
Summary Fundamental business drivers remain unchanged West’s competitive advantages uniquely position the Company to capitalize on growth drivers in key market segments Existing business continues to grow New products expected to enhance growth Solid balance sheet Seasoned, experienced management te
Slide 24: Donald E. Morel, Jr., Ph.D.
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 NYSE: WST westpharma.com
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