West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — UBS Global Life Sciences Conference 2006
28 slides from West Pharmaceutical Services's conference presentation, Sep 26, 2006
Slide 1: UBS Global Life Sciences, September 27, 2006
Donald E. Morel, Jr., Ph.D. Chairman & Chief Executive Officer William J. Federici Vice President & Chief Financial Officer UBS Global Life Sciences September 27, 2006 NYSE: WST www.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 are forward-looking statements that set forth anticipated results based on management’s plans and assumptions. Such statements give our current expec
Slide 3: Corporate Profile
Corporate Profile World's premier manufacturer of components and systems for injectable drug delivery Stoppers and seals for vials Disposable components used in syringe, IV, blood collection and diagnostic systems Founded in 1923 HQ in Lionville, PA 2005 sales $700M Market capitalization $1.3 Billio
Slide 4: Diverse Customer Base
Diverse Customer Base Company Estimated Market Share: 70% in Pharma; 70% in Device; 95% in Biotech
Slide 5: Global Presence
32 manufacturing sites 34 sales offices 7 technical centers 6,000 employees worldwide Global Presence
Slide 6: Key Company Developments
Key Company Developments Acquisition of Monarch Laboratories Acquisition of The Tech Group Acquisition of Medimop Sale of GFI Clinical Unit Sale of Contract Manufacturing Operations New management team Restructuring and increased CAPEX Sale of OTC Research Services Group Kinston plant accident Kinst
Slide 7: Strong Sales Growth
$224 $107 (in millions) Strong Sales Growth Acquisitions Core Business
Slide 8: FY05 Net sales by Markets
FY05 Net sales: Approx. $700 MM Markets
Slide 9: Geographic Sales Mix
Geographic Sales Mix (2005, based on point of sale)
Slide 10: Pharmaceutical Systems Competitive Edge
Pharmaceutical Systems Competitive Edge 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/compone
Slide 11: Pharmaceutical Systems Growth Strategy
Pharmaceutical Systems Growth Strategy Maximize the value of West’s core business Market segmentation Generate maximum value from key growth drivers New product innovation Lean manufacturing Geographic expansion Strategic acquisitions
Slide 12: Pharmaceutical Systems Capabilities
Pharmaceutical Systems Capabilities Offer elastomeric components with advanced coatings and barrier films Post manufacturing processes to increase efficiency of injectable drug production Anti-counterfeiting technologies Contract analytical services Plastic and glass material testing
Slide 13: FluroTec and Barrier Coatings
FluroTec ® and Barrier Coatings Westar ® Processing West Spectra TM Biotechnology/Oncology
Slide 14: Needleless Drug Reconstitution Systems
Needleless Drug Reconstitution Systems
Slide 15: Anti-counterfeiting/product tracking
Anti- counterfeiting/product tracking
Slide 16: Systems and Components
Systems and Components Prefillable syringes
Slide 17: The Tech Group: Investing for Sustainable Growth
WEST: T Pharmaceutical is UBS Global Life Sciences 2006 The Tech Group A West Pharmaceutical Services Company Investing for Sustainable Growth
Slide 18: Tech Group Growth Strategy
Tech Group Growth Strategy Build market share in multi-component systems for drug delivery Leverage West and Tech customer base Develop a portfolio of drug delivery systems for injectable, transmucosal, and pulmonary delivery Pursue selected consumer opportunities License or acquire innovative techn
Slide 19: The Tech Group Capabilities
The Tech Group Capabilities Custom contract-manufacturing services Precision plastic injection-molding and assembly Expertise in product design, including in-house mold design and construction Automated assembly solutions Quick-response center for developmental and prototype tooling
Slide 20: Drug Delivery
Drug Delivery Components and Systems Health Care and Consumer Products
Slide 21: Diabetes
Diabetes Components for Pen System Applications Components for Traditional System Applications Devices
Slide 22: Tech Group Competitive Edge
Tech Group Competitive Edge Technical excellence Regulatory expertise Analytical lab services Tooling High volume assembly Six Sigma support
Slide 23: GAAP/Non-GAAP Reconciliation
.12 - - - - - Interest Payment $1.15* $1.40 $1.33 $1.32 $.96 $.83 EPS Non-GAAP - - (.02) - - - Affiliate Gain - - .30 (.42) - - Kinston - - - - (.03) - Foreign Currency (.02) .05 (.07) - (.09) - Unusual Tax Items - (.04) .03 .26 .30 .05 Restructuring $1.05 $1.39 $1.09 $1.48 $.78 $.78 EPS Reported 1
Slide 24: Second Quarter Results
Second Quarter Results ($ in millions, except per share data) $0.38 $0.62 E.P.S. from Continuing Operations $0.37 $0.62 Non-GAAP E.P.S. from Continuing Operations $12.2 $20.7 Income from Continuing Operations $19.9 $32.1 Operating Profit $31.9 $36.9 Selling, General & Administrative Expenses 29% 29%
Slide 25: Capital Management
Capital Management $118.8 $136.6 Working Capital $26.8 YTD Spending Full Yr Expected - up to $95 Capital Expenditures: 45.0% 39.8% Debt to Total Invested Capital $625.0 $652.7 Total Capitalization $281.0 $259.9 Total Debt 12/31/05 6/30/06 ($M)
Slide 26: Debt to Total Capitalization
Debt to Total Capitalization Goal: 40-45% excluding acquisitions and significant capital expansion
Slide 27: Summary
Summary West has a set of competitive advantages that uniquely position the company for future growth These competitive advantages capitalize on the primary growth drivers in key market segments Global, diverse customer base Global manufacturing capability Solid financial base Strong, experienced ma
Slide 28: Donald E. Morel, Jr., Ph.D.
Donald E. Morel, Jr., Ph.D. Chairman & Chief Executive Officer William J. Federici Vice President & Chief Financial Officer UBS Global Life Sciences September 27, 2006 NYSE: WST www.westpharma.com
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