West Pharmaceutical Services, Inc. · NYSE:WST

West Pharmaceutical Services — Q2 2017 Earnings Presentation

15 slides from West Pharmaceutical Services's earnings presentation, Jul 27, 2017

  1. Slide 1: Second-Quarter 2017 Analyst Conference Call

    West Pharmaceutical Services, Inc. Second-Quarter 2017 Analyst Conference Call 9 a.m. Eastern Time, July 27, 2017 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer  A webcast of today’s call can be accessed in the “In

  2. 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

  3. Slide 3: Second-Quarter 2017 Results

    Second-Quarter 2017 Results * Excluding the impact from translational changes in foreign exchange  Net sales of $397.6 million, a new record high, representing 3.9% organic sales growth* ‒ Proprietary Products organic sales growth of 2.2% ‒ Contract-Manufactured Products organic sales growth of 10.

  4. Slide 4: Organic Sales Growth

    Organic Sales Growth 4 | Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Updated FY 2017E Guidance Overall Organic Sales Growth 8.2% 10.0% 7.7% 8.7% 3.9% ~6% Pharma HSD MSD HSD DD MSD HSD Generics DD HSD (MSD) (MSD) (MSD) (L/MSD) Biologics HSD DD DD MSD MSD HSD Contract Manufacturing MSD MSD DD DD DD HSD Ab

  5. Slide 5: 2017 Revised Outlook

    2017 Revised Outlook  2017 net sales range: $1.585 billion to $1.600 billion, compared to a prior range of $1.585 billion to $1.610 billion  Full-year 2017 net sales organic sales growth guidance of approximately 6%, compared to a prior range of 7% to 9%. Current exchange rates provide a sales tai

  6. Slide 6: Second Quarter 2017 Summary Results

    6 | Second Quarter 2017 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 12-15 and the discussion under the heading “Non-GAAP Financial Measures” in today

  7. Slide 7: Change in Consolidated Sales Second quarter 2016 to 2017

    $397.6 $14.9 $388.0 2016 Volume & Mix Sales Price Currency 2017 $0.3 ($5.6) Change in Consolidated Sales Second quarter 2016 to 2017 ($ millions) 7 |

  8. Slide 8: Change in Gross Profit Margin % Second quarter 2016 to 2017

    31.4% (0.4%) (1.0%) (1.7%) 0.1% 34.4% 2016 Net Currency Raw Material Volume & Mix Plant OH & Other 2017 Change in Gross Profit Margin % Second quarter 2016 to 2017 8 |

  9. Slide 9: Change in SG&A Costs Second quarter 2016 to 2017

    Change in SG&A Costs Second quarter 2016 to 2017 ($ millions) $60.6 $0.5 $0.7 $0.9 $1.1 $1.3 $62.5 2016 Comp and Benefits Currency Translation Incentive & Stock Comp US Pension Other 2017 16.1% of Sales 15.2% of Sales 9 |

  10. Slide 10: Cash Flow and Balance Sheet Metrics

    Cash Flow and Balance Sheet Metrics ($ millions) 10 | CASH FLOW ITEMS (UNAUDITED) (in millions) FINANCIAL CONDITION (UNAUDITED) (in millions) Six Months Ended June 30, 2017 2016 Depreciation and amortization $46.8 $45.0 Operating cash flow (1) $106.0 $79.2 Capital expenditures $67.0 $74.0 As of June

  11. Slide 11: 2017 Full-Year Guidance

    2017 Full-Year Guidance ($ millions, except EPS) (1) (2) (3) (1) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.14 for 2017. Actual results will vary as a result of variability of exchange rates, among other items. (2) Assumes no non-recurring items i

  12. Slide 12: Notes to Non-GAAP Financial Measures

    Today’s release, these presentation materials and associated presentation 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 sa

  13. Slide 13: Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 12-15), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 13 | Reconciliation of Reported and Adjusted

  14. Slide 14: Reconciliation of Net Sales to Net Sales at Constant Currency

    Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 12-15), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. 14 | Reconciliation of Net Sales to Net Sale

  15. Slide 15: Reconciliation of Reported Diluted EPS Guidance to Adjusted Guidance

    15 | 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”

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