West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Life Sciences Conference 2007
28 slides from West Pharmaceutical Services's conference presentation, Sep 26, 2007
Slide 1: UBS Global Life Sciences Conference September 24-27, 2007
UBS Global Life Sciences Conference September 24 - 27, 2007 Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer West Pharmaceutical Services William J. Federici Vice President & Chief Financial Officer West Pharmaceutical Services NYSE: WST westpharma.com
Slide 2: Forward-looking statements
Certain statements contained in this presentation and certain statements that may be made by management of the Company orally during this presentation contains some forward-looking statements that set forth anticipated results based on management’s plans and assumptions. Such statements give our cur
Slide 3: Corporate Background
Founded in 1923 HQ in Lionville, PA Corporate Background
Slide 4: Corporate Profile
Corporate Profile 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 2006 sales $913M Market cap $1.4 billion
Slide 5: Diverse Customer Base
Diverse Customer Base Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 6: Global Presence
Global Presence 32 manufacturing sites 34 sales offices 5 technical centers Partner locations Future China plants 6,000 employees
Slide 7: Key Company Developments
Key Company Developments FY 2001 - 2005 New management team Divestiture of non-core businesses Focus returned to injectable packaging and delivery Increased capital expenditures and capacity build in Europe Strategic acquisitions Strong revenue and profit growth FY 2006 Debt restructuring Integratio
Slide 8: Strong Sales Growth 2002-2006
$227 $107 (in millions) Strong Sales Growth 2002-2006 Acquisitions Core Business
Slide 9: Sales by Segment
WEST? narmaccutical lps Pharma Systems $644 1% Tech \_ Group $279M . \ 29% a .
Slide 10: Sales by Region
WEST? narmaccutical lps North America 51% Europe 40% South America oh Asia Pacific ah
Slide 11: Corporate Growth Strategy
Corporate Growth Strategy Pharmaceutical Systems Segment Market segmentation Generate maximum value from key growth drivers New product innovation Lean manufacturing Geographic expansion Strategic acquisitions Tech Group Segment Leverage West customer base to build market share in multi- material/mu
Slide 12: Market Dynamics Support West's Continued Growth
Market Dynamics Support West’s Continued Growth Increasing number of patients with chronic illnesses such as diabetes and cancer Increasing demand for biologics 2006 Market: $56B* Biologic drugs represent the fastest growing segment of the injectable pharma market (13% CAGR projected through 2010)*
Slide 13: Dosage Form Migration
Dosage Form Migration Reconstitution System Vial – Stopper – Seal Prefillable Syringe Ampoule Auto-injectors
Slide 14: Market Dynamics Support West's Continued Growth
Market Dynamics Support West’s Continued Growth Increasing number of patients with chronic illnesses such as diabetes and cancer Increasing demand for biologics 2006 Market: $56B* Biologic drugs represent the fastest growing segment of the injectable pharma market (13% CAGR projected through 2010)*
Slide 15: Convergence of Primary Containers and Delivery Systems
Convergence of Primary Containers and Delivery Systems Auto Injectors with Cartridges Components for Pen System Applications
Slide 16: West's Competitive Advantage
West’s Competitive Advantage Unmatched experience/expertise: drug material interface Ability to source components from multiple locations globally Protected IP: West’s components and systems Regulatory barrier to entry: NDA and ANDA filing must include reference to all packaging/components in contac
Slide 17: Strategic Objectives
Strategic Objectives Continue to maintain market leadership position in the biotechnology market Components for Prefillable Syringes * FluroTec technology is licensed from Daikyo Seiko, Ltd. FluroTec * and Barrier Coatings Westar ® Processing
Slide 18: Strategic Objectives
Strategic Objectives Expand position in the insulin/diabetes care segment Components for Pen System Applications Components for Traditional System Applications Devices
Slide 19: Strategic Objectives
Strategic Objectives Aggressively expand IP position via innovation and selective acquisitions Anti-Counterfeiting Closures Reconstitution Systems Daikyo Crystal Zenith* Systems * Daikyo Crystal Zenith technology is licensed from Daikyo Seiko, Ltd.
Slide 20: Strategic Objectives
Strategic Objectives Build manufacturing capabilities to meet market growth
Slide 21: Strategic Objectives: Conservative Balance Sheet Management
Create financial flexibility through conservative balance sheet management Strategic Objectives
Slide 22: Prior Years' Results
Prior Years’ Results ($M except per share) $46.0 $61.5 Income from Continuing Operations $1.41 $1.93 E.P.S. Continuing Operations – Non-GAAP $73.4 $101.0 Operating Profit $120.3 $155.9 SG&A 27.7% 28.7% Gross Margin $699.7 $913.3 Net Sales 2005 2006 2006 E.P.S. continuing operations – Non-GAAP exclud
Slide 23: June 30, 2007 Year-to-Date Results
June 30, 2007 Year-to-Date Results ($M except per share) $35.0 $53.0 Income from Continuing Operations $1.15 $1.45 Non-GAAP E.P.S. from Continuing Operations $60.3 $74.4 Operating Profit $71.2 $75.2 SG&A 30% 30% Gross Margin $463.0 $521.3 Net Sales 2006 2007 Non-GAAP EPS excludes 6 cents of discrete
Slide 24: Capital Management
Capital Management ($M) $90.3 $130.0 Full Year Capital Expenditures 31.1% 29.4% Net Debt to Total Capital $419.3 $499.1 Total Equity & Minority Int. $236.3 $384.7 Total Debt $47.1 $177.3 Cash 12/31/2006 6/30/2007
Slide 25: Operating Priorities
Manage core business growth Segmentation/therapeutic category management Improve Tech Group profit margins Shift product mix: focus on healthcare and proprietary products Maximize global capacity utilization Execute on European capacity expansion and China initiative Execute innovation programs Oper
Slide 26: 2007 Guidance – as of August 2, 2007
2007 Guidance – as of August 2, 2007 Revenues – approximately $1.0 billion Estimated consolidated gross margin of 29% Fully diluted earnings per share of $2.27 to $2.37 Excluding 6 cents discrete tax benefits R&D spending increased to $17 million Capital spending of $120 to $130 million
Slide 27: Summary
Summary 2007 on pace for approximately 20% growth in EPS West’s competitive advantages uniquely position the Company to capitalize on growth drivers in key market segments Global manufacturing capability Solid balance sheet Management incentives closely tied to growth in shareholder value Strong cor
Slide 28: UBS Global Life Sciences Conference September 24-27, 2007
UBS Global Life Sciences Conference September 24 - 27, 2007 Donald E. Morel, Jr., Ph.D. Chairman and Chief Executive Officer West Pharmaceutical Services William J. Federici Vice President & Chief Financial Officer West Pharmaceutical Services NYSE: WST westpharma.com
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