18 slides from West Pharmaceutical Services's earnings presentation, Jul 28, 2016
Slide 1: Second Quarter 2016 Analyst Conference Call
West Pharmaceutical Services, Inc. Second Quarter 2016 Analyst Conference Call 9 a.m. Eastern Time, July 28, 2016 Speakers: Eric M. Green President and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the prope
Slide 2: Cautionary 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 include, but are not limi
Slide 3: Q2 2016 Highlights
Net sales of $388 million, organic sales growth* of 8.2% Proprietary Products organic sales growth of 8.9% Contract-Manufactured Products organic sales growth of 5.1% Increased operating profit margin Reported diluted EPS of $0.60. Adjusted diluted EPS of $0.59, an increase of 26% from pri
Slide 4: Q2 2016 Highlights: Proprietary and Contract-Manufactured Products
4 Proprietary Products, 80% of total sales GENERICS Double-digit organic sales growth BIOLOGICS High-single digit organic sales growth PHARMA High-single digit organic sales growth Mid-single digit organic sales growth CONTRACT- MANUFACTURED PRODUCTS Q2 2016 Highlights 20% of total High-Value Produc
Slide 5: Global Operations
Global Operations Gross margin +160 basis points Increased capacity utilization and efficiency levels, especially for High- Value Products Proprietary Products backlog at June 30, 2016 was $417 million +20% (constant currency) over prior-year quarter Waterford construction is on-track and o
Slide 6: SmartDose Technology Developments
SmartDose® Technology Developments First commercial approval Selected by Amgen for Repatha® monthly single dosing FDA approval in July Multiple active programs in place with additional customers Next-generation technology in development 6
Slide 7: Engineered for Multiple Injection Modalities
7 Engineered for Multiple Injection Modalities Designed for Biologics Developed for Quality Risk Management Launched 1-3mL NovaPure® Plunger
Slide 8: 2016 Outlook
2016 Outlook Raising full-year 2016 net sales and lower-end of adjusted diluted EPS(1) guidance 2016 net sales: $1.505 billion to $1.520 billion Represents 7% to 9% organic sales growth 2016 adjusted diluted EPS(1): $2.15 to $2.25 Represents 17% to 23% growth over 2015 (1) Please refer to “Note
Slide 9: Second Quarter 2016 Summary Results
Second Quarter 2016 Summary Results ($ millions, except earnings-per-share (EPS) data) 9 (1) “Net sales at constant currency”, “adjusted operating profit”, “adjusted operating profit margin”, and “adjusted diluted EPS” are Non-GAAP measures. See slides 15-18 and the discussion under the heading “Non
Slide 10: Change in Consolidated Sales
Change in Consolidated Sales Second quarter 2015 to 2016 ($ millions) 10 $388.0 ($1.2) $26.6 $2.9 $359.7 2015 Volume & Mix Sales Price Currency 2016
Slide 11: Change in Gross Profit Margin %
11 Change in Gross Profit Margin % Second quarter 2015 to 2016 34.4% (1.7%) 1.7% 0.8% 0.5% 0.3% 32.8% 2015 Volume & Mix Efficiency Sales Price Raw Material Labor, OH, Deprec & Other 2016
Slide 12: Change in SG&A Costs
12 Change in SG&A Costs Second quarter 2015 to 2016 ($ millions) $62.5 $0.8 $0.2 $0.2 $2.2 $0.7 $60.8 2015 Comp and Benefits US Pension Incentive & Stock Comp Currency All Other 2016 16.9% of Sales 16.1% of Sales
Slide 13: Cash Flow and Balance Sheet Metrics
Cash Flow and Balance Sheet Metrics ($ millions) 13 CASH FLOW ITEMS (UNAUDITED) (in millions) BALANCE SHEET ITEMS (UNAUDITED) (in millions) (1) Net debt and total invested capital are Non-GAAP measures. Net debt is determined by reducing total debt by the amount of cash and cash equivalents, and for
Slide 14: Updated 2016 Full-Year Guidance
Updated 2016 Full-Year Guidance ($ millions, except EPS - Non-GAAP) (1) (2) 14 Estimated 2016 Revenue Estimated Gross Profit % Proprietary Products $1,195 - $1,200 37.9% to 38.4% Contract-Manufactured Products $310 - $320 17.1% to 17.6% Consolidated $1,505 - $1,520 33.6% to 34.0 % Est. Capital Spend
Slide 15: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures For additional details, please see today’s press release & Safe Harbor Statement Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally accept
Slide 16: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 15-18), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. ($ million, except EPS data) Reconciliation
Slide 17: Notes to Non-GAAP Financial Measures
Notes to Non-GAAP Financial Measures RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) See “Notes to Non-GAAP Financial Measures” (Slide 15-18), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items. ($ million, except EPS data) Reconciliation
Slide 18: Notes to Non-GAAP Financial Measures
(1) Please refer to “Notes to Non-GAAP Financial Measures” on slides 15 and 16, and “Non-GAAP Financial Measures” in today’s press release, for additional information regarding adjusted diluted EPS. (2) Guidance includes various currency exchange rate assumptions, most significantly the euro at $1.1