West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Bank of America Merrill Lynch Healthcare Conference 2013
25 slides from West Pharmaceutical Services's conference presentation, May 15, 2013
Slide 1: West Pharmaceutical Services, Inc. at Bank of America Merrill Lynch Healthcare Conference
1 West Pharmaceutical Services, Inc. Bank of America Merrill Lynch Healthcare Conference Las Vegas, NV May 15, 2013
Slide 2: Safe Harbor Statement
2 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 i
Slide 3: Today's Discussion
3 Today’s Discussion “By your side” (for 90 Years) Foundations for growth Growth drivers Results and outlook
Slide 4: Partnering with customers for 90 years
Partnering with our pharmaceutical, device and biotechnology customers from their beginnings, we’ve grown… …to become the preeminent supplier of products used in containing and administering small-volume parenteral drugs For 90 Years
Slide 5: A Diverse, Stable Customer Base
5 PHARMACEUTICAL / BIOTECHNOLOGY GENERIC MEDICAL DEVICE A Diverse, Stable Customer Base (representative healthcare customers) Industry-leading market shares in Europe and North America
Slide 6: Business Segments
6 Business Segments 2012 Revenues (millions) Contract manufacturing for: • Rx injection systems • Diagnostics, medical/surgical • Consumer Proprietary products: • Drug reconstitution and fluid transfer • Needle safety •Daikyo Crystal Zenith® products • Drug administration devices • Primary packa
Slide 7: Competitive Advantages
7 Competitive Advantages Pharmaceutical Packaging Category leader in mature end-markets “Designed-in” primary packaging barrier to entry Strong IP base - materials/process/manufacturing technology (HVPs) Global capabilities for global customers Key partnerships – Daikyo Seiko, West Mexico
Slide 8: Overall Pharmaceutical Market Outlook 2011-2016
8 Source: IMS Market Prognosis 2012; IMSCG Analysis; Note1: Pharmerging Markets refers to : China, Brazil, Russia, India, Venezuela, Poland, Argentina, Turkey, Mexico, Ukraine, Vietnam, South Africa, Thailand, Indonesia, Romania, Egypt, Pakistan United States 2011 Size: US$322Bn CAGR 2011-16: 2.4 %
Slide 9: Injectable Drug Growth: More, better, different
9 Injectable Drug Growth: More, better, different Persistent growth of injectable therapeutics: • Insulins • Biologics and specialty drugs • Orphan drugs • Generics and biosimilars Increasing industry and regulatory standards: • Quality • Safety Changing point-of-care: • Patient focused - Ease
Slide 10: Our Growth Initiatives 2013-2017
10 Our Growth Initiatives 2013-2017 Daikyo Crystal Zenith® is a registered trademark of Daikyo Seiko, Ltd. *Average Selling Price Packaging Systems Delivery Systems High-value products: modest unit growth, increasing ASP* and margin Geographic expansion: China, India sourcing and end-markets Optimiz
Slide 11: High-Value Product Sales, Margin Growth
High-Value Product Sales, Margin Growth Pharmaceutical Packaging Systems 2008-2012 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2012 sales 11
Slide 12: Proprietary Product Sales, Margin Growth
Proprietary Product Sales, Margin Growth Pharmaceutical Delivery Systems 2008-2012 compound annual sales growth rates (excludes currency) Circles reflect relative size of 2012 sales
Slide 13: Geographic Expansion: Asia-Pacific
13 Geographic Expansion: Asia-Pacific Singapore: 1. High-value Product Focus 2. Asia-Pacific market & special items 3. R&D hub & technical center China IV Plastic: Global supply China Elastomer: China market, Efficiency focus India Elastomers: 1. Domestic standard products & local support for multi-
Slide 14: Strategic Focus: Integrating Primary Container and Device Components
14 Strategic Focus: Integrating Primary Container and Device Components Elements of the delivery system Integrated delivery system • CZ® syringe + other auto-injector • ConfiDose® + glass • SmartDose® + glass • Éris & NovaGuard safety + glass • Molded systems • SmartDose® + CZ® cartridge • ConfiDose
Slide 15: Daikyo CZ Solution with Daikyo FluroTec Barrier Film
15 Daikyo CZ Solution with Daikyo FluroTec® Barrier Film Reduces: • Drug exposure to extractables • Risk of protein aggregation caused by silicone oil • In-process breakage and product returns caused by broken glass • Risk of delamination and glass-particulate contamination • Associated product re
Slide 16: SmartDose Electronic Patch Injector Technology Platform
16 SmartDose® Electronic Patch Injector Technology Platform Programmed by PDA or PC Dose may be customized Applied and activated by patient Controlled, subcutaneous, micro-infusion delivery of high volumes and high viscosity drugs Prefilled cartridge, no need for user filling Based on Daikyo C
Slide 17: 2012 Overview
17 2012 Overview ($ millions, except per-share data) Year Ended December 31, 2012 2011 Net Sales $ 1,266.4 $1,192.3 Gross Profit 387.7 339.3 Reported Operating Profit 135.1 109.6 Adjusted Operating Profit(1) 141.8 117.6 Reported Diluted EPS $ 2.30 $ 2.16 Adjusted Diluted EPS(1) $ 2.76 $ 2.33 10.1%
Slide 18: First-Quarter 2013 Summary Results
18 First-Quarter 2013 Summary Results (1) These are Non-GAAP measurements. See “Non-GAAP Financial Measures” and “Notes to Non-GAAP Financial Measures” (Slides 22- 25), “Safe Harbor Statement” (Slide 2) for an explanation and reconciliation of these items. ($ millions, except per-share data) Three M
Slide 19: Looking Forward
19 Looking Forward 2013 expectations: • HVP growth continues to enhance sales mix Modest price increases vs. 2012 Customer inventory requirements • Lead times and backlog • New facility start-up costs to impact margins • Exchange-rate, commodity, and West share price volatility Expect long-t
Slide 20: Key Take-Away Messages
20 Key Take-Away Messages Designed-in supply-chain partner to pharmaceutical, biotech and medical device customers Increasing quality and value of our products Growing portfolio of proprietary products Well positioned in fast-growing Asian markets Strong balance sheet, operating cash flow
Slide 21: West Pharmaceutical Services, Inc.
21 West Pharmaceutical Services, Inc.
Slide 22: Non-GAAP Financial Measures: Calendar Years 2012 and 2011
22 Non-GAAP Financial Measures(1) Calendar years 2012 and 2011 (millions, except per-share data) Year ended December 31, 2012 Operating profit Loss on debt extinguishment Income tax expense Net income Diluted EPS Reported (GAAP) 135.1$ 11.6$ 32.7$ 80.7$ 2.30$ Restructuring, impairment & related char
Slide 23: Non-GAAP Financial Measures: Three Months Ended March 2013 and 2012
23 Non-GAAP Financial Measures(1) Three Months Ended March 31, 2013 and 2012 (in millions, except per share data) Three-months ended March 31, 2013 Operating profit Loss on debt extinguishment Income tax expense Net income Diluted EPS Reported (GAAP) $43.3 $0.2 $8.6 $31.7 $0.90 Extinguishment of deb
Slide 24: Notes to Non-GAAP Financial Measures
24 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see Safe Harbor Statement (slide 2) (continued on following slide) These presentation materials and associated presentation may use the following non-GAAP financial measures: Adjusted operating profit Adjusted net income Ad
Slide 25: Notes to Non-GAAP Financial Measures (continued)
25 NOTES TO NON-GAAP FINANCIAL MEASURES For additional details, please see Safe Harbor Statement (Slide 2) ($ millions) The following is a description of the items excluded from adjusted operating profit, adjusted net income and adjusted diluted EPS for the periods presented in the accompanying tabl
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