West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Investor Presentation (September 2017)
24 slides from West Pharmaceutical Services's investor presentation, Sep 6, 2017
Slide 1: West Pharmaceutical Services, Inc. September 2017
West Pharmaceutical Services, Inc. September 2017
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: Our Mission
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 the commitment of our customers to improve the health of patients world
Slide 4: A 90-Year History
a”: A 90-Year History i xmmx Bainro: . The fist combination The West Company A forms iid West lunches global g product that incorporates is founded in partnership with employee giving program the Sm: platform ladelphia Daikyo Sei West without Borders approved by US. FDA 1923 1973 2004 2016 1945 1957
Slide 5: An Integral Part of the Healthcare Industry
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 5 |
Slide 6: West Business at a Glance
$1.5B Net Sales* By Product Category $1.5B Net Sales* By Geography Americas Europe, Middle East, Africa Asia Pacific 54% 39% 7% $1.5B 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 Biologi
Slide 7: Long-term Strategy
Long-term Strategy Market Led and Exceptional Customer Experience Operational Effectiveness Product and Service Differentiation Drive Shareholder Value Become the world leader in integrated containment and delivery of injectable medicines 7 |
Slide 8: Addressing Unique Customer Needs
Addressing Unique Customer Needs 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 Design for manufacturing CONTRACT MANUFAC
Slide 9: Integrated Containment & Delivery: Standard Packaging
West solutions: Integrated containment & delivery Increasing levels of customer intimacy Increasing value to West STANDARD est Differentiated Solutions: Standard Packaging—Stoppers & Seals 9 |
Slide 10: Integrated Containment & Delivery: High-Value Components
West solutions: Integrated containment & delivery Increasing levels of customer intimacy Increasing value to West STANDARD est Differentiated Solutions: High-Value Components 10 | STERILIZED WASHED COATED
Slide 11: Integrated Containment & Delivery: Quality & Inspection
West solutions: Integrated containment & delivery Increasing levels of customer intimacy Increasing value to West STANDARD est Differentiated Solutions: Increasing Quality & Inspection 11 | STERILIZED WASHED COATED CAMERA INSPECTED QUALITY BY DESIGN
Slide 12: Integrated Containment & Delivery: Reconstitution & Self Injection Devices
West solutions: Integrated containment & delivery ADMINISTERED SELF INJECTION est Differentiated Solutions: Reconstitution & Self Injection Devices 12 | Increasing levels of customer intimacy Increasing value to West CONTAINMENT
Slide 13: Integrated Containment & Delivery
West solutions: Integrated containment & delivery STERILIZED WASHED COATED ADMINISTERED CAMERA INSPECTED QUALITY BY DESIGN CONTAINMENT SELF INJECTION INJECTION MOLDING MULTI-COMPONENT ASSEMBLY STANDARD est Differentiated Solutions: Integrated Containment & Delivery 13 | Increasing levels of customer
Slide 14: Product Net Sales & Margin Growth
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 growt
Slide 15: Global Operations
Global Operations Global manufacturing network of 28 plants across U.S., Europe, Asia and South America Increased industry-leading quality metrics Increased capacity and efficiencies, reducing lead times and backlog levels for high-value products Global Supply Chain and Procurement drove low
Slide 16: Sustained, Consistent Growth
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 Serv
Slide 17: Second-Quarter 2017 Results
Second-Quarter 2017 Results * Excluding the impact from translational changes in foreign exchange Net sales of $397.6 million, a record high, representing 3.9% organic sales growth* ‒ Proprietary Products organic sales growth of 2.2% ‒ Contract-Manufactured Products organic sales growth of 10.5%
Slide 18: 2017 Full-Year Guidance
2017 Full-Year Guidance (as of 7/27/2017) ($ millions, except EPS) (1) (2) (3) (1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.14 for the remainder of 2017. Actual results will vary as a result of variability of exchange rates, among other items. (
Slide 19: Building for the Future
Building for the Future Global operations expanding capacity to meet growing customer demand Market-led strategy addressing the specific needs of pharmaceutical, biotechnology, generic and medical device customers Strong competitive position Quality culture Designed into regulated products Sci
Slide 20: Notes to Non-GAAP Financial Measures
These presentation materials use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in the U.S., and therefore are referred to as non-GAAP financial measures: Net sales at constant currency (organic sales) Ad
Slide 21: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) 21 | Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ million, except EPS data) Three months ended June 30, 2017 Operating profit Income tax expense Net income Diluted EPS Repo
Slide 22: Reconciliation of Net Sales to Net Sales at Constant Currency
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) 22 | 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 23: Reconciliation of Reported Diluted EPS Guidance to Adjusted Guidance
23 | Reconciliation of Reported Diluted EPS Guidance to Adjusted Diluted EPS guidance Full Year 2017 Guidance(1) (2) (3) Reported diluted EPS guidance $2.51 to $2.58 Venezuela deconsolidation 0.15 Adjusted diluted EPS guidance $2.66 to $2.73 (1) Please refer to “Notes to Non-GAAP Financial Measures”
Slide 24: Reconciliation of Reported and Adjusted Diluted EPS
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) 24 | 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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