West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Q3 2015 Earnings Presentation

13 slides from West Pharmaceutical Services's earnings presentation, Oct 29, 2015

  1. Slide 1: Third-Quarter 2015 Analyst Conference Call

    1 Speakers: Eric M. Green Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Third-Quarter 2015 Analy

  2. Slide 2: Cautionary Statement

    2 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 include, but are not li

  3. Slide 3: Third-Quarter 2015 Summary Results

    3 Third-Quarter 2015 Summary Results $ millions, except earnings per-share (EPS) data (1) “Net sales at constant currency”, “adjusted operating profit”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 11 to 13 and the discussion under the heading “Non-GAAP Financial Measures” in today’s

  4. Slide 4: Third-Quarter 2015 Operating Results

    4 Third-Quarter 2015 Operating Results Sales comparisons to 2014 are at constant currency & exclude divested business PPS & growth in high-value components  Pharmaceutical Packaging Systems sales grew 8.5% • High-value product sales grew 14.1% • Westar, Daikyo, FluroTec and Teflon-coated components

  5. Slide 5: 2015 Full-year Financial Guidance

    5 2015 Full-year Financial Guidance(2) ($ millions, except EPS) Estimated 2015 Revenue(2) Estimated Gross Profit % Pharmaceutical Packaging Systems Segment $1,000 - $1,010 37.7% to 38.1% Pharmaceutical Delivery Systems Segment $400 - $405 18.5% to 19.5% Consolidated $1,400 - $1,415 32.3% - 32.8 % Ca

  6. Slide 6: 2016 and Long-term Outlook

    6 2016 and Long-term Outlook  Expect 2016 net sales at constant currency to grow in the 6% to 8% range • Expect high-value products growth in the range of 10% to 11%  Key elements of 2015 strategic plan: • High-value components & proprietary delivery system growth • Operational excellence  2020 r

  7. Slide 7: Change in Consolidated Sales Third-Quarter 2014 to 2015

    7 Change in Consolidated Sales Third-Quarter 2014 to 2015 ($ millions) $344.5 $30.0 $1.5 $16.2 $3.9 $355.9 2014 Volume & Mix Sales Price Currency Disposition 2015

  8. Slide 8: Change in Consolidated Gross Profit Margin % Third-Quarter 2014 to 2015

    8 Change in Consolidated Gross Profit Margin % Third-Quarter 2014 to 2015 31.4% (2.1%) 1.2% 0.8% 0.4% 0.2% 30.9% 2014 Volume & Mix Sales Price Raw Material Currency & Other Labor & Overhead 2015

  9. Slide 9: Change in SG&A Costs Third-Quarter 2014 to 2015

    9 Change in SG&A Costs Third-Quarter 2014 to 2015 ($ millions) $54.6 $0.8 $3.0 $2.2 $0.2 $56.0 2014 Incentive Comp Other Comp Other SG&A Currency 2015

  10. Slide 10: Cash Flow and Balance Sheet Metrics

    10 Cash Flow and Balance Sheet Metrics ($ millions) Nine Months Ended September 30, 2015 2014 Depreciation and amortization $66.6 $68.0 Operating cash flow $144.4 $136.9 Capital expenditures $86.8 $84.8 CASH FLOW ITEMS (UNAUDITED) (in millions) As of September 30, 2015 As of December 31, 2014 Cash a

  11. Slide 11: Notes on Non-GAAP Measures & Safe Harbor Statement

    11 Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally acc

  12. Slide 12: Reconciliation of Non-GAAP Measures

    12 Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 11), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Net Sales at

  13. Slide 13: Full Year 2015 Guidance Reconciliation

    13 Full Year 2015 Guidance(5) (6) Adjusted diluted EPS guidance $1.79 to $1.84 Executive retirement and related costs Pension Settlement Charges (0.09) (0.42 to 0.46) Reported diluted EPS guidance $1.24 to $1.33 (5) Guidance includes various currency exchange rate assumptions, most significantly the

West Pharmaceutical Services — Q3 2015 Earnings Presentation on 6ix