18 slides from West Pharmaceutical Services's earnings presentation, Feb 21, 2013
Slide 1: Fourth-Quarter 2012 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici 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. Fourth-Quar
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
Slide 3: Fourth-Quarter Summary Results
3 Fourth-Quarter Summary Results (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 15-18), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press release for an explanation and reconciliation of
Slide 4: Fourth-Quarter Operating Results
4 Fourth-Quarter Operating Results Overall sales growth 8.8% (10.6% at constant currency) • Pharmaceutical Packaging Systems 8.3% (10.5% at constant currency) High-value products grew 17.5% at constant currency Backlog continues to grow • Pharmaceutical Delivery Systems up 10.2% (11.1% at cons
Slide 5: Full-Year Summary Results
5 Full-Year Summary Results (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 15-18), “Cautionary Statement” (Slide 2) and see “Non-GAAP Financial Measures” in today’s press release for an explanation and reconciliation of these
Slide 6: Expansion and Product Development
6 Expansion and Product Development Current growth in high-value packaging driven by innovations/investments: • Led by FluroTec and Westar • Customers migrating to Westar RU, NovaPure • Recent HVP finishing capacity investments are paying off China elastomer facility completed, in validation • C
Slide 7: 2013 Outlook
7 2013 Outlook Sales growth 6% to 8%, excluding currency Pharmaceutical Systems: • High-value products growth improves sales mix • Customer inventory-building • Operating efficiencies • Managing lead-times Delivery Systems: • Growth in proprietary product sales • Contract manufacturing of heal
Slide 8: Change in Consolidated Sales Fourth-Quarter 2011 to 2012
8 Change in Consolidated Sales Fourth-Quarter 2011 to 2012 ($ millions) $321.5 ($5.4) $22.1 $9.4 $295.4 2011 Sales Volume & Mix Sales Price Currency 2012 Sales
Slide 9: Change in Consolidated Gross Profit Margin %
9 Change in Consolidated Gross Profit Margin % Fourth-Quarter 2011 to 2012 30.3% (0.7%) (1.1%) 2.0% 1.2% 28.9%
Slide 10: Change in Fourth-Quarter SG&A Costs 2011 to 2012
10 Change in Fourth-Quarter SG&A Costs 2011 to 2012 ($ millions) $58.6 $3.0 $2.7 $2.1 $1.4 $0.7 $0.3 $48.4
Slide 11: Cash Flow Metrics
11 Cash Flow Metrics ($ millions) Year Ended December 31, 2012 2011 Depreciation and amortization $76.9 $75.7 Operating cash flow $187.4 $130.7 Capital expenditures $131.3 $95.4
Slide 12: Summary Balance Sheet Information
12 Summary Balance Sheet Information ($ millions) As of December 31, 2012 December 31, 2011 Cash and cash equivalents $161.9 $91.8 Debt $411.5 $349.4 Equity $728.9 $654.9 Net debt to total invested capital† 25.5% 28.2% Working capital $295.5 $228.8 † Net debt to total invested capital is a Non-GAAP
Slide 13: 2013 Full-year Financial Guidance
13 2013 Full-year Financial Guidance ($ millions, except EPS) Estimated 2013 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $990 - $1020 34.7% to 35.1% Pharmaceutical Delivery Systems Segment $370 - $380 20.5% to 21.5% Consolidated $1,360 - $1,400 30.7% - 31.3% 2013
Slide 14: Selected Factors Expected to Impact 2013 and Comparative Analytics
14 Selected Factors Expected to Impact 2013 and Comparative Analytics Pricing will not contribute substantially to revenue growth and profit margin High-value packaging and proprietary product growth to continue to drive sales and mix Customer inventory building continues, but not indefinitely
Slide 15: Non-GAAP Financial Measures: Three Months Ended December 31
15 Non-GAAP Financial Measures(1) Three Months Ended December 31, 2012 and 2011 (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slides 15-17), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Three-m
Slide 16: Non-GAAP Financial Measures: Year Ended December 31
16 Non-GAAP Financial Measures(1) Year-Ended December 31, 2012 and 2011 (in millions, except per share data) (1) See Slide 2, “Cautionary Statement” and “Non-GAAP Financial Measures,” Slide 17, “Notes to Non-GAAP Financial Measures,” and today’s press release for an explanation of these items. Year
Slide 17: Notes to Non-GAAP Financial Measures
17 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and 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
Slide 18: Notes to Non-GAAP Financial Measures: 2013 Guidance Reconciliation
18 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see today’s press release and Safe Harbor Statement. RECONCILIATION OF 2013 ADJUSTED DILUGED EPS GUIDANCE TO 2013 REPORTED GUIDANCE Full Year 2013 Guidance (1)(2) Adjusted diluted EPS guidance $2.97 to $3.17 2012 R&D tax credit .