West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — CJS Securities Conference 2006
39 slides from West Pharmaceutical Services's conference presentation, Jan 12, 2006
Slide 1: Corporate Overview
Exhibit 99.2 Corporate Overview Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer CJS Securities Conference January 12, 2006 NYSE: WST www.westpharma.com
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained inthis presentation and certain statements that may be made by management of the Company orally during this ‘presentation may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements can
Slide 3: Who are we?
Who are we? Each and every day millions of West products are used to enhance healthcare around the world.
Slide 4: Corporate Profile
Corporate Profile World's premier manufacturer of components and systems for injectable drug delivery, including = Stoppers and seals for vials = Closures and disposable components used in syringe, IV and blood collection systems. Founded in 1923 HQ in Lionville, PA
Slide 5: Corporate Profile
Corporate Profile + NYSE: WST (as of Dec 31, 2005) Stock price: $25.03 52 WK range: $18.58 — $29.99 Market cap: Approx $800 MM Shares outstanding: 31.6 MM + Record sales » FY02 $413 MM = FY03 $483 MM = FY04 $542 MM = FYOSE $700 MM + Increased dividends for 12 consecutive years = Current quarterly di
Slide 6: Guidance Update
Guidance Update January 12, 2006 2005 revenue estimated at $700 million EPS from continuing operations * Annual: $1.35 to $1.38 = Fourth quarter: $0.35 to $0.38 = Estimates exclude tax charge on repatriated foreign earnings: = $0.09 to $0.11 for the year * $0.06 to $0.08 for the fourth quarter Expec
Slide 7: Global Presence
Global Presence @ 23 manufacturing sites @ 34 sales offices © 7 technical centers
Slide 8: Global Customer Base
Global Customer Base Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech medtronic Gensi Cole IVAX |
Slide 9: Key Company Developments
Key Company Developments Fy 2001 FY 2002 FY 2003 FY 2004 FY 2005 + Sale of Contract Manufacturing Operations + New management team + Restructuring and increased CAPEX + Sale of OTC Research Services Group + Kinston explosion + Kinston restart + 2-for-1 stock split + Divestiture of Drug Delivery + Ac
Slide 10: Continued Sales Performance
Continued Sales Performance 2001 2002 2003 2004 2005(E) 2006(F) i Core Businesses @ Acquisitions
Slide 11: Business Segments
Business Segments FY05E Net sales: Approx. $700 MM. Disposable Medical ‘Components $104 MM 15% Tech Device Group $124MM 18% Laboratory and Other Services $51 MM 7%
Slide 12: Geographic Sales Mix
Geographic Sales Mix (2005, based on point of sale) North America, 51% Europe, 41% South America, 4% 4%
Slide 13: Investment Highlights
Investment Highlights Well positioned for continued revenue growth World’s premier manufacturer of standard-setting components and systems for injectable drug delivery « Value-added products, technologies and services that serve current and future market needs » Substantial market share in key segme
Slide 14: Corporate Growth Strategy
Corporate Growth Strategy Core Injectable Business + Maximize the value of West’s core business (Company Estimated Market: $1.1 BN) = Value capture » Lean manufacturing Market segmentation Service offerings Product line extensions New product innovation Geographic expansion Strategic acquisitions
Slide 15: Market Size, Our Share, Our Growth, Gross Margin
Market Size? | OurShare | Our Growth | Gross Margin Long-Term (2005-2007) Range Growth Rate $1 to $1.5 billion. | Market Leader | 6-8% 25-50% Growing 2-5% $150 million, Market Leader | 0-2% 10-20% Growing 0-2% Not determined | Small 812% 10-50%
Slide 16: West's Competitive Edge
West’s Competitive Edge Unmatched experience/expertise: drug material interface Ability to source components from multiple locations Protected IP: West’s components and systems Regulatory barrier to entry: NDA and ANDA filing must include reference to all packaging/components in contact with the dru
Slide 17: Growth Drivers
Growth Drivers + Global demographics = Diabetes
Slide 18: Diabetes
Diabetes Components for Traditional System Applications ‘Components for Pen System Applications
Slide 19: Growth Drivers
Growth Drivers + Global demographics = Diabetes + Growth in biotechnology drugs = Oncology
Slide 20: Biotechnology/Oncology
Biotechnology/Oncology Closures and Components for Closures and Components for Traditional and Prefilled Systems Biotechnology and Oncology Systems Syringe plungers, needle shields
Slide 21: Biotechnology/Oncology
Biotechnology/Oncology Reconstitution Aides
Slide 22: Growth Drivers
Growth Drivers + Global demographics = Diabetes + Growth in biotechnology drugs = Oncology + Anti-counterfeiting needs
Slide 23: Growth Opportunities
Growth Opportunities Closures with built-in product tracking, authentication and anti-counterfeiting features > & (45 SS )
Slide 24: Corporate Growth Strategy
Corporate Growth Strategy Device Business + Build market share in devices such as multi- component, multi-material systems (Company Estimated Market: $4.5 BN) + Leverage customer base = Develop a portfolio of proprietary systems for injectable, transmucosal, and pulmonary delivery = Pursue selected
Slide 25: Rationale for Tech Acquisition
Rationale for Tech Acquisition +West has: = Unmatched experience/expertise: drug material interface = Ability to source components from multiple locations = Anticipated 3-5 year modest core business unit growth = Consumer business that The Tech Group seeks. + The Tech Group has: = Potential to broad
Slide 26: Tech Complements West
Tech Complements West Healthcare 30% Consumer 70% —_ The Tech Group West Device Group FY04 Sales: $74.2 MM FY04 Sales: $65.0 MM
Slide 27: Tech Customer Base
Tech Customer Base Pharmaceutical ea MERIDIAN MEDICAL TECHNOLOGIES Ga Device <9 BDI Consumer
Slide 28: Tech Product Portfolio
Tech Product Portfolio Health Care Consumer
Slide 29: Tech Group Segment
Tech Group Segment Financial Attributes Health Care ‘Consumer Product Tooling and Products Manufacture Engineering Manufacture Services Monthly Sales, [SO million) $8 million, $23 million Current Annual | growing 8-12% | growing 4%-6% Growth Rates Gross Margin | 18% - 35% 8% - 20% 0%-10% Range
Slide 30: Exubera Inhaled Insulin
Exubera® Inhaled Insulin + Joint development with Pfizer & Aventis + Class Ill medical device part of NDA + Key market variables / unknowns «Approval dates «Initial launch timing and breadth / geography «Market acceptance — Doctors and patients Patient acceptance may expand market «Increased patient
Slide 31: Rationale for Medimop Acquisition
Rationale for Medimop Acquisition + Medimop = Market leader in reconstitution, transfer, mixing and administration systems for injectable drugs = Designs, develops and manufactures needleless devices and safety connectors for mixing and reconstitution = Excellent engineering and technical reputation
Slide 32: Medimop Product Portfolio
Medimop Product Portfolio Needleless Drug Mial/Adapters Transfer and Mixing
Slide 33: 2006 — Where We Stand
2006 — Where We Stand + Key elements of the “Sustainable Growth” strategy are now in place: = West's core pharmaceutical systems business is an established global franchise = Tech Group adds new customers, products and capabilities in the key device segment = Medimop adds new technologies and produc
Slide 34: Operating Priorities
+ + + + Operating Priorities Execute business plan and strategy » Retain focus on growth of core injectable business = Capitalize on Tech and Medimop programs and opportunities Institutionalize “lean thinking” Assess expansion opportunities = China -— India — Brazil —Russia/Eastern Europe Continue t
Slide 35: Financial Considerations
WEST Pharmaceutical Financial Considerations
Slide 36: Nine-month 2005 Results
Nine-month 2005 Results ($ millions, 2004 2005 except EPS) Pharm Tech Consolidated | Pharm Tech Consolidated Systems | Group Systems | Group (1) (0) Net Sales} $357 $43 $400| $402 $102 $504 growth 12.6% 7% 11.5% Gross Profit 411 7 118} 126 5) 141 sales} 31.0%| 16.3% 29.5% | 31.3% | 14.7% 27.9% Opera
Slide 37: Financial Objectives
Financial Objectives Achieve debt to total cap ratio of 35% or better, exclusive of any new acquisition-related debt Selectively invest in innovative new products and technologies, and new geographies Grow sales 6-8% before the effects of currency and acquisitions Improve margins by using Lean to el
Slide 38: Management Performance Metrics
Management Performance Metrics + Short term (Annual) = Corporate — EPS, cash flow = Operations — net sales, operating profit, cash flow + Long term = 50% restricted stock, 50% options = Compounded annual growth rate (CAGR) = Return on invested capital (ROIC) + Stock ownership guidelines for all exec
Slide 39: Searchable text section of graphics
Searchable text section of graphics shown above [L OGO] Corporate Overview Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer CJS Securities Conference January 12, 2006 NYSE: WST www.westpharma.com Sa fe Harbor Statement Certain statements contained in this presentation and certain sta
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