West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Investor Presentation (September 2016)
23 slides from West Pharmaceutical Services's investor presentation, Sep 26, 2016
Slide 1: West Pharmaceutical Services, Inc. September 2016
West Pharmaceutical Services, Inc. September 2016
Slide 2: Cautionary Statement and Safe Harbor
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This slide 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 no
Slide 3: By your side… Our mission
By your side… Pharmaceutical, biotechnology, generic and medical device companies trust West and our ability to deliver consistent high quality and technologically advanced containment and delivery solutions. We share their commitment to improving health for patients worldwide. Our mission 3 Become
Slide 4: Injectable market and containment & delivery product sales
4 Injectable market $284 Billion of Annual Drug Sales $7- 8 Billion Containment & Delivery Product Sales Source: IMS and Company estimates
Slide 5: An integral part of the healthcare industry
An integral part of the healthcare industry Top 35 Injectable biologics rely on West and Daikyo components ~ 40 Billion Components manufactured annually Top 75 Supplier to the top 75 pharmaceutical & biotech injectable companies 5
Slide 6: West business – at a glance
2015 Sales $1.4 billion 2015 Sales $1.4 billion 2015 Net Sales by Geography West business – at a glance 7% 39% 33% 21% Americas Europe, Middle East, Africa Asia Pacific 2015 Net Sales by Category 53% 40% 7% High-Value Components Standard Packaging Delivery Devices Contract Manufacturing P RO P RI E
Slide 7: West's role in delivering medicines to patients
Proprietary Products Stoppers Seals Caps Syringe Components Daikyo CZ Vials & Syringes Reconstitution Systems Self-Injection Devices West’s role in delivering medicines to patients Contract-Manufactured Products Program Management Injection Molding High-volume Integrated Assemblies Quality Systems $
Slide 8: Sustained, consistent growth
% % % % % % % % % 2011 2012 2013 2014 2015 Net Sales Sustained, consistent growth 8 2011 2012 2013 2014 2015 Adjusted Diluted EPS* (reported, $ millions) CAGR 4.8% $1,192.3 $1,399.8 CAGR 11.8% $1.17 $1.83 (Non-GAAP) Constant Currency CAGR 6.7% Comparison of Cumulative Five-Year Total Return 0 50 100
Slide 9: Long-term strategy
Long-term strategy 9 Market Led and Customer Experience Operational Excellence Product and Service Differentiation Drive Shareholder Value Become the world leader in integrated containment and delivery of injectable medicines
Slide 10: Addressing unique needs
Addressing unique needs 10 Quality – A High Bar Set By Our Customers GENERICS Speed to market Efficient manufacturing BIOLOGICS Packaging solutions for sensitive molecules Self-injection technologies PHARMA Total cost of ownership Life cycle management Quality manufacturing Design for manufacturing
Slide 11: West solutions: Integrated containment & delivery
West solutions: Integrated containment & delivery 11 Increasing levels of customer intimacy Increasing value to West STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION CONTRACT MANUFACTURING INJECTION MOLDING CONTRACT MANUFACTURING MULTI-COMPONENT ASS
Slide 12: Product net sales & margin growth 2011-2015
Circles reflect relative size of 2015 net sales Standard Packaging High-Value Components 0% 5% 10% 15% 20% 0% 30% 60% 2015 Category Gross Margin % Proprietary Devices Contract Manufacturing 2015 GM 32.6% 5-Yr Sales CAGR 6.7% Product net sales & margin growth 2011-2015 compound annual net sales growt
Slide 13: Q2 2016 highlights
Net sales of $388 million, organic sales growth* of 8.2% Proprietary Products organic sales growth of 8.9% Contract-Manufactured Products organic sales growth of 5.1% Increased operating profit margin Reported diluted EPS of $0.60. Adjusted diluted EPS of $0.59, an increase of 26% from pri
Slide 14: Q2 2016 highlights: Proprietary Products, 80% of total sales
14 Proprietary Products, 80% of total sales GENERICS Double-digit organic sales growth BIOLOGICS High-single digit organic sales growth PHARMA High-single digit organic sales growth Mid-single digit organic sales growth CONTRACT- MANUFACTURED PRODUCTS Q2 2016 highlights 20% of total High-Value Produ
Slide 15: Global Operations
Global Operations Q2 2016 gross margin +160 basis points over same period last year Increased capacity utilization and efficiency levels, especially for High- Value Products Proprietary Products backlog at June 30, 2016 was $417 million +20% (constant currency) over prior-year quarter Water
Slide 16: SmartDose technology developments
SmartDose® technology developments First commercial approval Selected by Amgen for Repatha® monthly single dosing FDA approval in July Multiple active programs in place with additional customers Next-generation technology in development 16
Slide 17: NovaPure Plunger
17 Engineered for Multiple Injection Modalities Designed for Biologics Developed for Quality Risk Management Launched 1-3mL NovaPure® Plunger
Slide 18: 2016 full-year guidance
2016 full-year guidance ($ millions, except EPS - Non-GAAP) (1) (2) 18 Estimated 2016 Revenue Estimated Gross Profit % Proprietary Products $1,195 - $1,200 37.9% to 38.4% Contract-Manufactured Products $310 - $320 17.1% to 17.6% Consolidated $1,505 - $1,520 33.6% to 34.0 % Est. Capital Spending $150
Slide 19: Building for the future
Building for the future Market-led strategy addressing the specific needs of pharmaceutical, biotechnology, generic and medical device customers Strong competitive position Quality culture Designed into regulated products Scientific and technical expertise Global Operations expanding capacity
Slide 20: Appendix: Reconciliation of non-GAAP measures
Appendix: Reconciliation of non-GAAP measures 20 2015 2014 2013 2012 2011 Diluted EPS Reported (GAAP) $1.30 $1.75 $1.57 $1.15 $1.08 Pension settlement charge 0.43 - - - - Executive retirement and related costs 0.09 - - - - License costs - 0.01 - - - Discrete tax items 0.01 0.02 0.06 0.03 0.02 Restru
Slide 21: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS
($ million, except EPS data) Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS 21 Three months ended June 30, 2016 Operating profit Income tax expense Net income Diluted EPS Reported (GAAP) $61.2 $17.0 $44.7 $0.60 Restructuring and related charges (1.5) (0.5) (1.0)
Slide 22: Reconciliation of Net Sales to Net Sales at Constant Currency
($ million, except EPS data) Reconciliation of Net Sales to Net Sales at Constant Currency(1) (1) Net sales at constant currency translates the current-period reported sales of subsidiaries whose functional currency is other than the U.S. dollar at the applicable foreign exchange rates in effect dur
Slide 23: Reconciliation of adjusted diluted EPS guidance to reported
(1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.12 for the remainder of 2016. Actual results will vary as a result of exchange rate variability. Reconciliation of adjusted diluted EPS guidance to reported diluted EPS guidance 23 Full Year 2016 Guid
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