West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — J.P. Morgan Healthcare Conference 2019
26 slides from West Pharmaceutical Services's conference presentation, Jan 9, 2019
Slide 1: J.P. Morgan Healthcare Conference
West Pharmaceutical Services, Inc. J.P. Morgan Healthcare Conference Eric M. Green, President & CEO January 9, 2019
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: Who We Are – A 95-Year History in Healthcare
Who We Are – A 95-Year History in Healthcare Our Mission West contains and delivers injectable therapies that improve patient lives. Our Vision To be the world leader in the integrated containment and delivery of injectable medicines. 3 | WST Investor Presentation – January 9, 2019
Slide 4: Business Segment Detail: Products & Services
Business Segment Detail: Products & Services Proprietary Products Contract Manufacturing Stoppers & Seals for Vial Design & Prototyping Containment Injection Molding of Plastics Components & Safety Devices for Product Assembly Pre-fillable Syringes & Cartridges Project Management Polymeric Container
Slide 5: A Growing Business Well-positioned for Success
A Growing Business Well-positioned for Success 8% 23% 23% >2,000 Customers 35% Net Sales* Largest Customer: Net Sales* 42% Net Sales* 3% By Product By Market ~7% of Total Sales 44% 48% By Geography Category Group 21% 32% 21% >7,500 Employees Americas High-Value Components Pharma Europe, Middle East,
Slide 6: Long-term Growth Strategy
Long-term Growth Strategy Three Core Values PASSION Market-Led Operational FOR and Exceptional Effectiveness Customer Experience CUSTOMERS LEADERSHIP IN QUALITY Product Shareholder and Service Value Differentiation Creation ONE WEST TEAM 6 | WST Investor Presentation – January 9, 2019
Slide 7: Our Values: Passion for Customers
Our Values: Passion for Customers Our customers’ success is our success. We innovate to continuously improve our product and service offerings to meet future customer and patient needs. 7 | WST Investor Presentation – January 9, 2019
Slide 8: Proprietary Products Segment
Proprietary Products Segment Customer Needs Total Cost of Ownership PHARMA Life Cycle Management Packaging Solutions for Sensitive INTEGRATED Molecules DRUG BIOLOGICS DELIVERY Self-Injection Technologies Speed to Market GENERICS Efficient Manufacturing 8 | WST Investor Presentation – January 9, 2019
Slide 9: Proprietary Products High-Value Product Strategy
Proprietary Products High-Value Product Strategy Increasing value to West SELF QUALITY INJECTION BY DESIGN CONTAINMENT CAMERA INSPECTED COATED ADMINISTERED STERILIZED ® WASHED Increasing levels of customer intimacy STANDARD 9 | WST Investor Presentation – January 9, 2019
Slide 10: R&D Supports Future High-Value Product Growth Strategy
R&D Supports Future High-Value Product Growth Strategy Elastomer Innovation High-Value Processing Delivery Devices New, high-quality formulations Process and technology That integrate West’s and programs to address innovation advances to produce containment and delivery customer needs higher value p
Slide 11: Product Net Sales & Margin Growth
Product Net Sales & Margin Growth 2013-2017 compound annual net sales growth rates (excludes currency) HVP% Total Proprietary HVP% Total Proprietary Product Category Margins Product Units Sold Product Net Sales 2012 20% High-Value 2012 2017 13% Components 15% Proprietary Contract Devices 10% Manufac
Slide 12: Contract Manufacturing Segment
Contract Manufacturing Segment Customer Needs Quality & Design Manufacturing CONTRACT MANUFACTURING Scalability UNIQUE CAPABILITIES DEVICE DRUG PRODUCT TRACK & FINAL ASSEMBLY HANDLING TRACE/SERIALIZATION PACKAGING 12 | WST Investor Presentation – January 9, 2019
Slide 13: Healthcare Focus & Expanded Capabilities Will Increase Profitability in Contract Manufacturing
Healthcare Focus & Expanded Capabilities Will Increase Profitability in Contract Manufacturing Growth in Healthcare-Focused Areas Expanded Capabilities 100% 2013-2017 CAGR Higher Gross Margin Contract Opportunity Manufacturing Cold Chain Net Sales Packaged Drug Handling Healthcare Healthcare Healthc
Slide 14: Integrated Solutions Address Customer Needs
Integrated Solutions Address Customer Needs: Combine West Offerings in Convenient Packages Customer Challenges Combination Complex Drug Navigating the Resource Products Development Requirements Constraints Analytical Primary Regulatory & Services & Packaging Quality West Technical & Delivery Support
Slide 15: Asia Pacific and South America Focus: Opportunity for Future Growth
Asia Pacific and South America Focus: Provide Opportunity for Future Growth West Presence Developing Market Trends & West Performance ▪ Annual underlying market growth is high single- digits ▪ West sales growing at a double-digit sales CAGR over the last 5 years ▪ High demand from all customers segm
Slide 16: Scientific & Technical Expertise to Support Customers
2018 Scientific & Technical Expertise to Support Customers ~2,000 ~300 ~45 Technical ~120 Customer Requests Customer Conference Patents Regulatory Filing Audits Presentations Issued Assistance 16 | WST Investor Presentation – January 9, 2019
Slide 17: Digital Transformation Offers Knowledge and Online Ordering Opportunities
Digital Transformation Offers Knowledge and Online Ordering Opportunities ▪ The West Knowledge Center provides scientific insight and detailed technical information on key areas of expertise featuring technical reports, bulletins and science posters ▪ The West Online Store is a one-stop solution for
Slide 18: Our Values: Leadership in Quality
Our Values: Leadership in Quality 18 | WST Investor Presentation – January 9, 2019
Slide 19: Operations Footprint Supports Global Customer Base
Operations Footprint Supports Global Customer Base 95 Years >110 Million 28 >3.3 Million < 0.07 OF PROVIDING COMPONENTS MANUFACTURING SQUARE FEET PARTS PER MILLION INNOVATIVE MANUFACTURED FACILITIES AROUND MANUFACTURING OF OUT-OF-SPEC SOLUTIONS DAILY THE WORLD SPACE PARTS 19 | WST Investor Presentat
Slide 20: "One West" Global Operations Management System
“One West” Global Operations Management System Driving Improved Operational Performance One Global Approach Record-Setting Across All Sites Manufacturing Results in 2018 Strategy Procurement Supply Chain Safety Quality Process Excellence Advanced Manufacturing Engineering Service Cost 20 | WST Inves
Slide 21: Our Values: One West Team
Our Values: One West Team We strive to unleash the talent of each team member at West. Our diverse team of employees spans the globe, but we are united by our integrity and mutual respect for one another, the safety of our work environments, and the communities in which we operate. 21 | WST Investor
Slide 22: Sustained, Consistent Growth
Sustained, Consistent Growth 250% Constant Currency Adjusted Diluted EPS CAGR 6.4% CAGR 14.3%* $1.60 $2.78 200% Billion 150% $1.63 100% $1.37 50% Billion 0% 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 WST-USQ SPX MID Net Sales Adjusted Diluted EPS* Comparison of C
Slide 23: Becoming a World Leader in Integrated Containment & Delivery of Injectable Medicines
Becoming a World Leader in the Integrated Containment & Delivery of Injectable Medicines Market-led Strategy addressing the specific needs of pharmaceutical, biotechnology, generic and medical device customers Proprietary Products and Contract Manufacturing segments expected to drive net sales growt
Slide 24: West
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Slide 25: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures For additional details, please see WST’s Q3 2018 press release & Safe Harbor Statement These presentation materials use the following financial measures that have not been calculated in accordance with generally accepted accounting principles (GAAP) accepted in t
Slide 26: Appendix: Reconciliation of Non-GAAP Measures
Appendix: Reconciliation of Non-GAAP Measures 2017 2016 2015 2014 2013 Reported-Diluted EPS (GAAP) $1.99 $1.91 $1.30 $1.75 $1.57 Venezuela deconsolidation 0.15 - - - - Venezuela currency devaluation - 0.04 - - - Pension settlement charge - - 0.43 - - Pension curtailment gain - (0.01) - - - Executive
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