West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q4 2019 Earnings Presentation
20 slides from West Pharmaceutical Services's earnings presentation, Feb 13, 2020
Slide 1: Fourth Quarter 2019 Analyst Conference Call
West Pharmaceutical Services, Inc. Fourth Quarter 2019 Analyst Conference Call 9 a.m. Eastern Time, February 13, 2020 ▪ A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com Speakers: ▪ To participate on the call, please dial: Eric M. Green
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: 2019 Fourth-Quarter and Full-Year Results and 2020 Guidance
2019 Fourth-Quarter and Full-Year Results and 2020 Guidance • Q4 2019 net sales of $470.6 million grew 11.4%, organic sales growth was 12.7% • Full-year 2019 net sales of $1.840 billion grew 7.1%; organic sales growth was 10.0% • Q4 2019 reported-diluted EPS of $0.84 increased 22%; Full-year 2019 re
Slide 4: Organic Sales Growth
Organic Sales Growth Q4 2019 FY 2019 Overall Organic Proprietary Products Q4 2019 organic sales growth of 14.7%, 13% 10% Sales Growth led by sales of high-value products, which grew double digits Q4 2019 sales led by high-value products, including Daikyo®, Biologics DD DD BIOLOGICS Westar® and Fluro
Slide 5: High-Value Products Fueling Growth in Support of Market Trends
High-Value Products Fueling Growth in Support of Market Trends Biologic Drug Increased Regulations Injectable Drug Generics Growing in Molecules Increasing for Combination Drugs Market Growing Key Emerging Regions Advanced Elastomer 4040/40 5 WST Q4 2019 Earnings
Slide 6: "One West" Global Management System Driving Improved Performance
“One West” Global Management System Driving Improved Performance One Global Approach Across All Sites Manufacturing 0.7 Strategy RIR One 25 RECORDABLE MANUFACTURING INJURY RATE West Supply Chain Global FACILITIES Decreased by Management AROUND THE 66% Since Process Excellence System WORLD 2015 >100
Slide 7: Significant Presence in Asia Pacific Region Established
Significant Presence in Asia Pacific Region Established West’s Acquisition of GIS Increased Equity stake in Digital Technology Korea Ltd. Daikyo partnership Center in India 7 WST Q4 2019 Earnings
Slide 8: West is Driving Sustainable Business Practices
West is Driving Sustainable Business Practices Investor’s Business Daily Six Pillars 2019 Best ESG Companies 9.7% waste to landfill REDUCTION Employer of the Year Environmental Kearney, NE Sustainability energy efficiency improvement CSR Initiative Award, 1.5% Compliance Dublin, IE & Ethics of West’
Slide 9: Fourth-Quarter 2019 Summary Results
Fourth-Quarter 2019 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended December 31, 2019 2018 Reported Net Sales $470.6 $422.5 Gross Profit Margin 32.5% 31.5% Reported Operating Profit $78.1 $65.8 Adjusted Operating Profit (1) $73.1 $67.1 Reported Operating Profit
Slide 10: Change in Consolidated Net Sales
Change in Consolidated Net Sales Fourth-quarter 2018 to 2019 ($ millions) 10 WST Q4 2019 Earnings
Slide 11: Gross Profit Update
Gross Profit Update ($ millions) Three Months Ended December 31, 2019 2018 Proprietary Products Gross Profit $134.1 $115.0 Proprietary Products Gross Profit Margin 38.0% 37.0% Contract-Manufactured Products Gross Profit $19.3 $18.2 Contract-Manufactured Products Gross Profit Margin 16.4% 16.4% Conso
Slide 12: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items Financial Condition YTD YTD December 31, December 31, Q419 Q418 2019 2018 Depreciation and Amortization $103.4 $104.4 Cash and Cash Equivalents $439.1 $337.4 Operating Cash Flow $367.2 $288.6 Debt $257.3 $196.1 Capital Expenditures $12
Slide 13: 2020 Full-Year Guidance
2020 Full-Year Guidance 2020 Full-Year Guidance(1,2) Consolidated Net Sales $1.95 - $1.97 billion Reported-Diluted EPS $3.45 - $3.55 Capital Spending Approximately 7% of Consolidated Net Sales (1) Please refer to “Notes to Non-U.S. GAAP Financial Measures” on slides 15-20 and “Non-U.S. GAAP Financia
Slide 14: SHARED West OUR innovation INDUSTRY MAINTAINED A delivered THOUGHT GOLD STANDARD 4 NEW PRODUCT
SHARED West OUR innovation INDUSTRY MAINTAINED A delivered THOUGHT GOLD STANDARD 4 NEW PRODUCT LEADERSHIP FROM ECOVADIS, SOLUTIONS at key meetings, in A leader in supplier scientific publications sustainability ratings, and through 90+ placing us in the top published blogs in 2019 5% of reporting co
Slide 15: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement ▪ For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign curre
Slide 16: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 15-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of
Slide 17: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 15-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of
Slide 18: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 15-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of
Slide 19: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 15-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of
Slide 20: Notes to Non-U.S. GAAP Financial Measures
Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures” (Slides 15-20), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. Reconciliation of
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